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It then rents everything to the franchisee for 15% of the restaurant's sales plus 50% of the pretax profit remaining.
So that after buying the stock and paying off the loans, there was very little profit remaining to reinvest in the company.
Similar(58)
Despite the dire trading figures M&S said its guidance for annual profit remained unchanged.
Shares fell 5percentto to 405.25 pence a share, as profit remained flat at its fast-food business.
Bloomsbury's total revenues grew 11% to £109.5m, pre-tax profit remained flat at £9.5m.
However, in the first half, revenues were only £300,000 more than the same period a year before at £119.5m while operating profit remained the same, at £1.5m.
Margaret Hodge MP, chair of the Public Accounts Committee, said: "Departments have a duty to ensure that the taxpayer is not being ripped off and that people, not profit, remain at the heart of our public services.
But sources of robust new profit remain elusive.
So this profit remained untaxed for year, greatly lowering the effective tax rate.
PCCW, which reported Tuesday a 15% drop in 2008 profit, remained suspended from trading as a court investigates tycoon Richard Li's $2.1 billion privatization bid.
The accounts also show a sharp jump in profits from about €20m to €152m between 2011 and 2012 after four years of profits remaining in double figures.
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CEO of Professional Science Editing for Scientists @ prosciediting.com