BBC Resources

From Wikipedia, the free encyclopedia

Set up as a commercial company in 1998,[1] BBC Resources Ltd provides TV Studio facilities based in London, UK along with network Post Production facilities in London, Bristol and Birmingham. Until March 2008 it also owned Outside Broadcast facilities based in Langley (close to the M4/M25 junction) and Salford.[2]

As one of the largest production facilities in the UK, it employed around 1,100 staff (approx. 960 plus 165 in admin.) and had an annual turnover of around £125 million - although it does not own any studios[3] - its assets being staff and equipment.

It was the first of the BBC's commercial business-to-business divisions to be set up as a limited company and is currently a wholly owned subsidiary of the BBC.

Contents

[edit] Organisation

BBC Resources provides production facilities to programme makers, and is now made up of two active businesses under BBC control:

Two others have been sold:

  • BBC Outside Broadcasts[6] - since 1st April 2008 has been owned and operated by SIS.
  • BBC Costume + Wigs[7] - Ceased trading in February 2008 while attempting to sell the collection as a going concern[8]
Costumes sold in March 2007 to Angels and Bermans.
Hairpiece collection sold in March 2007 to The Wig Store.

[edit] Privatisation

The company made an operating profit of £6.1m for 2005-06, down from £7.4m the year before, with the BBC accounting for 83.3% of its turnover, down from 87.4% for 2004-05.[9] The figure for 2006-07 was £5.2 million - with BBC business currently 80% of its turnover.[10]

Andrew Thornton was appointed as project director in early 2007 for the sale of the company, and in April Ernst & Young were named as external advisers.

The team responsible for this privatisation have been named as: Ed Murray, Victoria Custerson, Peter Ranyard, Grant Welland, Dominic Warren, Paula Hornby, Mike Goodie, Ali Jeremy,- other expertise "will be brought in as required".

This sale team is accountable to a BBC steering group consisting of: Zarin Patel, Nicholas Eldred, Stephen Kelly, Peter Salmon and John Smith.

On 16th August 2007 advertisements were placed in the Financial Times, The Times and Broadcast inviting expressions of interest for the acquisition of this commercial subsidiary, and stating that "it is expected that the sale of the business and transfer of BBC Resources staff to the successful bidder will take place by the end of March 2008, subject to contract negotiations and approvals".[11]

On 6th November The Guardian reported[12] that the privatisation could be left with a shortfall of up to £15m to cover the transfer of the pensions of BBC Resources staff to a potential new employer.[13]

The BBC has not released the names of all the short-listed companies,[14] with The Guardian reporting - in early 2008 - more leaks over concerns about pension obligations and asbestos exposure.[15] On 7th March 2008 it was announced that the outside broadcast division would be sold, as expected, to Satellite Information Services[16] - with a surprise announcement that the studios operation (employing around 350 staff at Television Centre and Elstree) would remain in BBC ownership.[17]

In early June 2008, the fate of the third business was put on hold with the BBC stating that "for the time being, we are no longer actively in discussion with a buyer for Post Production" and that "like Studios, Post Production will remain within BBC Resources, which will continue to operate as a wholly-owned commercial subsidiary of the BBC". The staff newspaper Ariel had reported on 18th March that Post's 400 staff had been told that the BBC "may need to look at other solutions if the business is not sold at this stage".

[edit] BBC Costume + Wigs

Costume and Wigs - trading as part of BBC Studios - was the second largest collection of its kind in the UK, after the leading suppliers Angels The Costumiers. It was not included in the privatisation, however in early October 2007 it was announced that the business was to close within six months and the entire stock sold as a complete collection.[18]

This sale fell through - the interested party was thought to have been prop hire company Superhire - and on 14th February 2008 the department ceased trading,[19] with a BBC spokeswoman adding that "the arrangements [the corporation] was pursuing have not worked out and BBC Resources is currently inviting interested parties to consider making an offer to purchase."[20]

The costume collection - consisting of over 1 million items - was eventually sold to costume house Angels and Bermans on 30 March 2008.[21]

The collection of wigs was sold separately to The Wig Store Limited [2] a management buy-out put together by Philippa Devon and Alan Godleman.[22]

[edit] References

  1. ^ BBC to launch new commercial subsidiary following DCMS approval (BBC Press Office). Retrieved on 2007-09-08. In its first full year the company made an operating profit of £1.3 million [1]
  2. ^ BBC OB's move to mediacity:uk. Retrieved on 2008-02-04.
  3. ^ Wells, Matt. "Here's one we made much, much earlier - and now it's time to move", The Guardian, 2007-01-11. Retrieved on 2008-01-26. 
  4. ^ BBC Studios website. Retrieved on 2007-09-08.
  5. ^ BBC Post Production website. Retrieved on 2007-09-08.
  6. ^ BBC Outside Broadcasts website. Retrieved on 2007-09-08.
  7. ^ BBC Costume + Wigs website. Retrieved on 2007-09-08.
  8. ^ Props section shuts despite resurgence in period drama (Times Online - 15 Feb. 2008). Retrieved on 2008-02-16.
  9. ^ Bectu lobbies BBC over Resources sale (Media Guardian - 22 Nov. 2006). Retrieved on 2007-09-08.
  10. ^ BBC Resources Ltd (Annual Report for 2006-07). Retrieved on 2007-09-08. (PDF)
  11. ^ BBC kicks off sale for BBC Resources Ltd (BBC Resources website). Retrieved on 2007-09-08.
  12. ^ BBC sell-off hit by £15m hitch (Media Guardian - 6 Nov. 2007). Retrieved on 2007-11-07.
  13. ^ BBC Resources sale could be unprofitable (Wikinews - 8 Nov. 2007). Retrieved on 2007-11-09.
  14. ^ MP raises fears over BBC Resources (Media Guardian - 14 Jan. 2008). Retrieved on 2008-01-31.
  15. ^ BBC Resources poised for breakup (Media Guardian - 8 Feb. 2008). Retrieved on 2008-02-08.
  16. ^ "BBC announces successful bidder for BBC Outside Broadcasts", BBC Press Office, 2008-03-07. Retrieved on 2008-03-07. 
  17. ^ BBC Resources to be split up (Media Guardian - 7 March 2008). Retrieved on 2008-03-07.
  18. ^ Weekend TV - Fancy one of Cranford’s frocks? (Times Online - 19 Nov. 2007). Retrieved on 2007-11-19.
  19. ^ BBC costumes arm in limbo (Media Guardian - 14 Feb. 2008). Retrieved on 2008-02-14.
  20. ^ Sale of BBC costumes on hold as buyout fails (Independent - 15 Feb. 2008). Retrieved on 2008-02-15.
  21. ^ New home for BBC costume archive (BBC News Online - 30 March 2008). Retrieved on 2008-03-30.
  22. ^ Angels the Costumiers purchases BBC’s costume collection (The Stage - 2 April 2008). Retrieved on 2008-04-20.

[edit] External links

BBC Portal


v • d • e
The British Broadcasting Corporation (BBC)
Services
Nations and regions
Subsidiaries
BBC Worldwide (BBC Books · BBC Magazines) · BBC Resources · BBC Films
History
Departments
Key properties
Finance
Management
Category · Portal