Posted on: 4th January 2017
Please note that this page has been updated with a further note added below.
The annual financial statements, including Windrush Ventures Limited and Firerush Ventures Limited, have been submitted to Companies House and are published on this website today.
Closure of Tony Blair Associates
In September 2016 Tony Blair announced his decision to close Tony Blair Associates and wind up the Firerush and Windrush structures.
As a result of the decision to wind up the business structures, the financial statements of the Firerush entities and Windrush Ventures No.2 LLP have not been prepared on a going concern basis, as they will not continue operating beyond one year from the date of signing of the financial statements.
Tony Blair Institute
Tony Blair Institute (“TBI”), a not for profit organisation owned entirely by Mr. Blair, was established in December 2016.
TBI is a company limited by guarantee, founded with the purpose of making globalisation work for all. Its objectives include helping countries alleviate poverty, raising people’s standards of living, fostering religious and cultural tolerance and advancing peace and reconciliation.
Mr Blair is the sole owner and Executive Director of TBI. On his instruction, the articles of association stipulate that he will not receive any salary or remuneration for this role.
As previously announced, Mr Blair has gifted the entirety of the total net assets of Windrush Ventures Limited (WVL) to TBI. The gift was made upon the incorporation of TBI when Mr Blair transferred his ownership of WVL to TBI on 1st December 2016. The amount gifted was £9.257m, i.e. the net assets of WVL as reported in its 2016 financial statements (Page 8).
Ownership of WVL was transferred to provide the seed funding for TBI and its new premises, as well as ensure the continuity of operations, which includes the existing staff contracts and property lease.
As WVL will continue to provide services to TBI throughout 2017, until it is dissolved, the financial statements of WVL have been prepared on a going concern basis.
Windrush Ventures Limited
Like other UK companies, the Windrush Group pays corporation taxes on its pre-tax profits, i.e. the surplus that remains after deducting operating costs from turnover. For this financial year, £879,000 of corporation tax is due on the surplus of £2.2m.
Please note: for all UK businesses, corporation tax is based on profit not turnover.
As reported in last year’s financial statements, WVL invested £2.0m in Firerush Ventures Limited (FVL) in April 2016 via a subscription for Redeemable Preference Shares, with the intention to expand the FVL business. The subsequent decision to close FVL means the value of the investment has been fully written off, with funds retained by FVL to manage an orderly wind down.
Windrush and Firerush are the two entities through which commercial activities were conducted and through which the operating costs of the Tony Blair group’s global activities were paid.
As we stress every year, the financial results released do not present the overall profits of either of the Windrush or Firerush businesses. Instead they present the operating, and where appropriate closing, costs of the businesses.
Prior to the transfer or closure of the businesses these companies retain sufficient profits in each year to cover the cost of its annual operations.
Readers of the financial statements should note that the structure of the business provided: limited liability protection; confidentiality of business results; and transparency for tax purposes.
Mr Blair is a UK taxpayer and pays full personal tax on all his earnings worldwide.
These financial statements do not represent his earnings or the earnings or the profit of his businesses and are not referable to them. They represent neither the accounts of the charities he founded nor his donations to them. The financial statements have been audited by KPMG LLP.
Due to minor typographical errors in the wording of sections of the audit report, the accounts of WVL have been re-submitted to Companies House on 16 January 2017. The corrections do not change the numbers within the accounts, the disclosures to the accounts or the nature of the audit opinion – they remain the same.
The corrected document is now published on this website. On page 4 under ‘Opinion on financial statements’ the first bullet point now says ‘give a true and fair view of the state of the company’s and group’s affairs as at 31 March 2016 and of the group’s profit for the year then ended.”
On page 5 under “Matters on which we are required to report by exception” the first bullet point now reads “We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches nor visited by us; ”
The following sentences previously shown on page 4 under “Opinion on other matter prescribed by the Companies Act 2006” are not required and therefore were removed: “Based solely on the work required to be undertaken in the course of the audit of the financial statements and from reading the Strategic Report and the Directors’ Report:
- We have not identified material misstatements in those reports; and
- In our opinion, those reports have been prepared in accordance with the Companies Act 2006.”