Letter: Telegraph's parent still in the money

Share
Related Topics
Sir: Gail Counsell's article ('The tangled web that leads to the Telegraph', 25 August) about the Telegraph and its parent, Hollinger Inc, fails to recognise the widespread North American practice of accruing non-cash charges in order, legitimately, to reduce tax levels.

While it is true that Hollinger's profits have fluctuated between dollars 25m and dollars 74m in previous years, its cash flow (net profts plus non-cash reductions of income) has been steadily over Cdollars 100m for many years.

In the six months ending 30 June, leaving out all unusual gains, including the disposal of 12.5 million Telegraph shares, Hollinger had an after-tax cash flow of dollars 87m with dollars 50m of that being earned in the second quarter.

These are the best such periods in the company's history. The company's vulnerability to fluctuations in operating income in its British subsidiary is therefore much less than Ms Counsell's article indicates.

In the second quarter, the United Kingdom's contribution to that cash flow fell from more than 70 per cent in the corresponding period in 1993 to approximately 50 per cent in 1994.

It is precisely to avoid excessive vulnerability to competitive conditions in the British newspaper industry that Hollinger has successfully diversified so that henceforth most of its cash flow and income will come from non-British sources while all non-convertible debt has been eliminated and more than dollars 200m cash has accumulated.

Yours sincerely,

J. A. BOULTBEE

Vice-President,

Finance and Treasury

Hollinger Inc

Toronto, Canada

25 August

React Now

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
iJobs Job Widget
iJobs General

Recruitment Genius: Cleaner

£15000 - £16500 per annum: Recruitment Genius: If you've got first class custo...

Recruitment Genius: Mobile Applications Developer / Architect - iOS and Android

Negotiable: Recruitment Genius: This is a great opportunity to join a medium s...

Recruitment Genius: Telesales Account Executive - £40K OTE

£11830 - £40000 per annum: Recruitment Genius: Working in a friendly, sales ta...

Recruitment Genius: Web Designer

£15000 - £27000 per annum: Recruitment Genius: One of the UK's leading web des...

Day In a Page

Read Next
David Cameron gives a speech at a Tory party dinner  

In a time of austerity, should Tories be bidding £210,000 for a signed photo of the new Cabinet?

Simon Kelner
Prime Minister David Cameron says his party must not ‘remain neutral’ in the EU membership referendum  

Greece might just have gifted David Cameron with EU referendum success

John Mullin
John Palmer: 'Goldfinger' of British crime was murdered, say police

Murder of the Brink’s-MAT mastermind

'Goldfinger' of British crime's life ended in a blaze of bullets, say police
Forget little green men - aliens will look like humans, says Cambridge University evolution expert

Forget little green men

Leading evolutionary biologist says aliens will look like humans
The Real Stories of Migrant Britain: An Algerian scientist adjusts to life working in a kebab shop

The Real Stories of Migrant Britain

An Algerian scientist struggles to adjust to her new life working in a Scottish kebab shop
Bodyworlds museum: Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy

Dying dream of Doctor Death

Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy
UK heatwave: Temperature reaches 39.8 degrees on Central Line - the sweatiest place in London

39.8 degrees recorded on Tube

There's hot (London) and too damn hot (the Underground). Simon Usborne braved the Central line to discover what its passengers suffer
Kitchens go hi-tech: From robot chefs to recipe-shopping apps, computerised cooking is coming

Computerised cooking is coming

From apps that automatically make shopping lists from your recipe books to smart ovens and robot chefs, Kevin Maney rounds up innovations to make your mouth water
Jessie Cave interview: The Harry Potter star has published a feminist collection of cartoons

Jessie Cave's feminist cartoons

The Harry Potter star tells Alice Jones how a one-night stand changed her life
Football Beyond Borders: Even the most distruptive pupils score at homework club

Education: Football Beyond Borders

Add football to an after-school homework club, and even the naughtiest boys can score
10 best barbecue books

Fire up the barbie: 10 best barbecue books

We've got Bibles to get you grilling and smoking like a true south American pro
Wimbledon 2015: Nick Bollettieri - Junk balls and chop and slice are only way 5ft 1in Kurumi Nara can live with Petra Kvitova’s power

Nick Bollettieri's Wimbledon Files

Junk balls and chop and slice are only way 5ft 1in Kurumi Nara can live with Petra Kvitova’s power
Ron Dennis exclusive: ‘This is one of the best McLaren teams ever – we are going to do it’

‘This is one of the best McLaren teams ever – we are going to do it’

Ron Dennis shrugs off a poor start to the season in an exclusive interview, and says the glory days will come back
Seifeddine Rezgui: What motivated a shy student to kill 38 holidaymakers in Tunisia?

Making of a killer

What motivated a shy student to kill 38 holidaymakers in Tunisia?
UK Heatwave: Temperatures on the tube are going to exceed the legal limit for transporting cattle

Just when you thought your commute couldn't get any worse...

Heatwave will see temperatures on the Tube exceed legal limit for transporting cattle
Exclusive - The Real Stories of Migrant Britain: Swapping Bucharest for London

The Real Stories of Migrant Britain

Meet the man who swapped Romania for the UK in a bid to provide for his family, only to discover that the home he left behind wasn't quite what it seemed
Cheaper energy on the way, but it's not all sunshine and rainbows

Cheaper energy on the way, but it's not all sunshine and rainbows

Solar power will help bring down electricity prices over the next five years, according to a new report. But it’s cheap imports of ‘dirty power’ that will lower them the most