Big Society Capital lost nearly £6.8m last year

Its latest accounts show that this included almost £3.6m in investment losses

The social investment wholesaler Big Society Capital made an operating loss of almost £6.8m in 2015, including almost £3.6m in investment losses, its latest accounts show.

In its financial statement for the year to 31 December 2015, which was filed with Companies House yesterday, BSC’s total loss for the year was £6.8m, up from a £1.7m loss in 2014.

The accounts say, however, that the company’s business plan means the organisation will be loss-making in its first few years.

Income increased from £1.8m to £2.5m, but this was offset by investment losses of £3.6m. In contrast, BSC made investment gains of £1.1m in 2014.

Administration and other expenses cost BSC £5.7m in 2015, compared with £4.6m in 2014.

The latest figures mean BSC had cash and current asset investments of £276.1m by the end of 2015.

A spokeswoman for BSC said: "The losses mainly represent establishment costs and ongoing management fees within the fund investments we have made. These have been incurred before any returns on investments have been made."

Regarding the investment losses, the financial statement says: "It is expected that these losses will continue in the near term. The long-term aim is to be self-sufficient.

"The business plan shows that, for the initial few years, the company will be loss-making while it builds the market and makes early-stage investments.

"In later years, as the portfolio matures, the investments are forecast to make returns to cover the operational and market-championing costs and generate a financial return."

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