Trade association moves into the red
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The Chartered Institute of Public Relations, which has 9,000 members, has announced that it expects to make a loss of about £700,000 this year.
More than £500,000 relates to the CIPR's move from its offices in St James's Square to its current premises at Bloomsbury Square.
It is believed the CIPR was offered a financial incentive to leave its former offices before its lease expired, after the landlord applied for planning permission to turn the Georgian premises into a private home.
In the event, the commitments were not honoured. The property was repossessed and sold, and the landlord is now a subject of a Serious Fraud Office investigation.
Kevin Taylor, president of the CIPR, attributed the remainder of the loss to a downturn in trading income during the past quarter. A programme of immediate cost savings has now been implemented.
He added: 'Our cash flow position remains positive, and we are committed to turn round the finances in the next year.'
Colin Farrington, director general of the CIPR, is currently on an extended leave of absence. He is also chairman of the Global Alliance for Public Relations and Communication Management, of which the CIPR was a founding member. It is believed that the CIPR recently withdrew from the alliance.