Forensic Science Service posts £104m loss
Government-owned Forensic Science Service (FSS), based in Solihull, has unveiled losses of almost £104m in its latest year-end report. The company, which is set to be wound up next year, said it was currently "heavily engaged" in discussions with parties interested in acquiring some or all of the assets of the business.
The FSS supports criminal justice systems in the UK and abroad, providing services including DNA testing.
In documents seen by Insider, FSS revealed it had almost doubled its losses in the year ending 31 March 2011. The company lost £103.9m after tax, compared to a loss of £52.7m at its 2010 year-end.
Revenue also fell from £112.9m in 2010, down to £87.3m in its latest accounts.
Despite FSS' it had a gain of £3.5m on its defined benefit pension scheme.
Through its financial report submitted to Companies House, FSS blamed a contraction in the forensic research market on its flailing revenues. It said that "police customers in particular [are] reacting to budgetary pressures".
The company received EU rescue aid grant funding from the Home Office, which FSS said was provided "to ensure that delivery of services is not disrupted through the transition period".
Over the 12-month period, FSS issued additional share capital amounting to £10m relating to a final tranche of funding to cover restructuring costs.
In its accounts, FSS lists an exceptional item cost of £85.8m, which it said arose from the announcement to wind down the company and the continuation of restructuring during the year.
Restructuring costs were placed at £66.5m; more than double the £30.1m the company spent last year. The restructuring figure includes the cost of redundancy and associated staff costs of £59.4m.
FSS, which employs 1,600 people across the UK and is based in Birmingham's Business Park, is set to be wound down by 31 March 2012. It became a government-owned company in December 2005 and has helped catch killers including paedophile Roy Whiting and Soham murder Ian Huntley.
FSS will stop taking on new cases next month (October).
Bill Griffiths, chairman of FSS, described the circumstances surrounding the company's final year as "disappointing and difficult".
"We are contributing to a number of wound-down projects including reviewing the future of the FSS archive and collections," added chief executive Simon Bennett. "We have been heavily engaged in discussions with parties potentially interested in acquiring some or all of the business. This will be a key focus for us and the Home Office during the coming months."
FSS also has offices in Chepstow and Chorley.
