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Thread: Health Check For The Manchester Building Society

  1. #11
    HB
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    Well I don't claim to be an expert in accountancy either, looks like MBS are playing games.

    In 2011 the accounts show a loss of over £12m (page 7). That was after the profit from the sale of the subsidiary, realising nearly £6m. Without that, a loss of £18m would have been had.

    In the half-year 'results' announcement in 2012 they said
    The Group reported a profitable start to 2012, with IFRS pre-tax profits of £862k.
    but when audited annual accounts appeared for the full year ending 31 Dec 2012 the figure for 2012 was £3.8m loss, (restated from an originally stated £3.5m loss).

    In the 'results' announcement for the first half of 2013,
    The Group reported a profitable start to 2013, with pre-tax profits of £1,623k for the 6 months ended 30 June 2013.
    and
    The Group has reported a profit before tax for the six months ended 30 June 2013 of £1,623k
    But in the full year audited results, they clearly made a loss of £7.6 million according to their SFS on Page 15.

    So any claim made of profitability in the first half of 2014 etc etc which seems to follow the same pattern as the above could have the same outcome in 2014.

    Given that Nationwide are pushing for something just a few weeks after financial year end, makes me wonder if something has been 'spotted' in the books that gives cause for concern.
    Last edited by HB; 23rd January 2015 at 09:28 PM.
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  2. #12
    HB
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    From the BSA yearbook, they have 38 full time members of staff!

    And I see they have 28,000 shareholding members, and the same number of depositors, a very high proportion for a building society!
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  3. #13
    Contributor EarthBoy is an unknown quantity at this point
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    It seems that Manchester BS are now blaming the auditors for their woes. They're suing them:

    http://www.bbc.co.uk/news/business-31904852
    HB and planteria like this.

  4. #14
    Contributor 1User
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    The best part of the BBC story is:

    "The investigation started in August 2013 and is still going on."

    18 months and counting! Why doesn't the Nationwide step in and put them out of their (our?) misery?

    1User

  5. #15
    HB
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    Everybody is to blame, except the Directors. It'll be the customers fault next.

    I always wonder why it takes MBS until May to sign off their accounts when some can get it done by the end of February.
    Last edited by HB; 16th March 2015 at 03:34 PM.
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  6. #16
    HB
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    Quote Originally Posted by 1User View Post
    18 months and counting! Why doesn't the Nationwide step in and put them out of their (our?) misery?
    I suspect Nationwide have had enough of taking over building societies for a while. And MBS might well be down in their list of desirables should they consider one.
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  7. #17
    Junior Member Steve15
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    They made a profit in 2014!


    http://www.insidermedia.com/insider/...eturns-profit/
    Manchester Building Society returns to profit


    Manchester Building Society has returned to the black after reporting pre-tax profits of more than £4m. The building society, which is based in Manchester city centre, posted pre-tax profits of £4.3m in the 2014 calendar year compared to losses of £1.6m a year earlier.
    It also told investors that net interest income fell from £14.4m in 2013 to £10.7m in 2014, which was attributed to the planned reduction in the size of its balance sheet and following the disposal of the society's £68m UK lifetime book at the end of 2013.
    David Harding, chairman of Manchester Building Society, said: "I am pleased to report that the society has recorded a healthy profit before tax of £4.3m for 2014, following the loss recorded in 2013.
    "Underlying profitability, levels of liquidity and mortgage book performance were all sound during 2014 and the society continues to focus on supporting its borrowing and saving members."

  8. #18
    HB
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    Nothing at this place makes sense
    Pre-tax losses were 1.6m, but their accoounts revealed tax due of over 5.5m on this loss (how?)
    Then there were payments to 'equity holders' of £575k

    I'll believe a profit when I see the reserves rise, and I wonder what their assets will have shrunk to?
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  9. #19
    Contributor Froggitt will become famous soon enough
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    The auditors spotting the loss wouldn't have made the loss any smaller. Total incontinence.

  10. #20
    HB
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    So the "mortgage business performed well" yet the Society's mortgage side lost 15% of its business in 2014.

    And its share balances fell 23%

    Total assets fell 21%

    You'd think the directors would have awarded themselves a pay cut given their disappearing society.
    Froggitt and planteria like this.
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