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Trustees on Union Books service review

Photo of books in the Union bookshop Union Books has experienced a 38% drop in sales in 8 years.

As a board of trustees, including and chaired by elected student officers, we took the difficult decision to begin a consultation process about closing the retail operation of Union Books.  A  Board of Trustees meeting was held on 13 July where 12 trustees were present, including the 6 elected trustees (exec officers).  The trustees agreed to proceed with the proposal regarding the closure of Union Books.

 
 
This was because of falling book sales set against a market which is in decline and moving towards web based retailing.  Under charity law, the trustees are liable for ensuring the organisation acts in accordance to its public benefit, that is representing and supporting students at the University of Leeds.  The risk that the Union Books retail operation presents to the rest of the Union's student support services is well documented in earlier statements (link to Books update page).  Whilst we cannot continue to operate an independent book shop ourselves, we are currently seeking a commercial partner to provide an academic book service for our students. After initial enquiries we are optimistic about this potential.
 
 
The table below is based on externally audited figures. All of this financial data up to 2009-10 has been published previously in financial statements issued at AGMs by Leeds University Union.
 
Union Books trading figures 2002-03 to 2009-10

 

Year
Sales
Profit / Loss
2002-03
£1,190,000
£57,000
2003-04
£1,190,000
£49,000
2004-05
£1,171,000
£28,000
2005-06
£989,000
-£6,000
2006-07
£854,000
-£33,000
2007-08
£847,000
£9,000
2008-09
£827,000
£6,000
2009-10
£734,000
-£51,000
 
  •  Drop in sales from 2002-03 to 2009-10 = £456,000 (38%).
  • Total profit on £7.8m turnover in 8 years = £59,000 (0.76%).
  • Figures above include a stock provision for £54k to provide against any future write-offs following the closure of the shop.
  • Leeds University Union is externally audited by KPMG.
 
 
 
As trustees we would like to extend our thanks to the huge effort and commitment of the Union Books team who are currently delivering a 10% sale.

 

Comments

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Edward Salkeld
12:36pm on 27 Nov 10

As an explanation for closure this is pretty pathetic to be honest.

Firstly, whilst it is clear that last year was pretty disasterous for Union Books, the two years preceeding weren't.  You might have noticed that a *lot* of companies and businesses struggled last year. To close a fantastic service on the basis of one year's bad trade seems disasterously short sighted.

Secondly, the amount of money thrown at LUU by the university and the amount spent by LUU (completely unnecessarily) on redevelopment of the foyer and Terrace casts the amount of money Union Books was using into insignificance.  I used to be able to say that I belonged to a Union that, although perhaps not the prettiest, provided a decent range of student services.  Now all I can say is that I belong to beautiful union that provides cheap beer in a pleasant setting.

Great. LUU seems intent on deconstructing its image as a student service and becoming a cheap food, drink and shopping centre. I don't know whether I'm more angry or sad.
Owen Johnson
12:20pm on 26 Nov 10

So... the "stock provision for £54k to provide" for the closure means that the audited 2009-10 accounts would have been £3k profit (£54k - £51k).

Perhaps a bookshop that can sustain breakeven and still provide a student service is something that fits the LUU's charter? Especially since it's given £2m per year by the University.

 
Published: 15 Oct 2010 11:57 , Last updated: 22 Oct 2010 16:56