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8 things you never knew about Leica Camera UK


marknorton

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So here is some information on Leica Camera Ltd, the wholly owned UK subsidiary of Leica Camera AG, all pulled from published resources.

 

1. Sales for year ending 31 March 2008 were £7,907,000. They made a Gross Profit of £1,872,000, a gross margin of 30%.

 

2. Their net profit before tax was £307,000, tax paid £97,000, retained profit £210,000, dividends 0.

 

3. Their net assets were £1,698,000. The Directors of the Company, 4 of them, paid themselves a very modest £93,000.

 

4. One of the Directors at the time was a certain Stephen K Lee. The K stands for Kenneth and he lives in Edina, Minnesota. Jolly cold up there, or at least it was I worked for IBM in Rochester, MN.

 

5. Leica Camera Ltd issued share capital is a sizeable £0.02, both £0.01 shares being owned by Leica Camera AG.

 

6. Leica Camera Ltd have a very good credit rating; a Credit Limit of £170,000 is thought appropriate.

 

7. One of the Directors lives a little less than 2 miles from the Leica office and takes 6 minutes to get to work. The house he lives in was sold for £272,000 in September 2008.

 

8. In 2008, Leica Camera Ltd had 19 employees who between them earned £509,000.

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4. One of the Directors at the time was a certain Stephen K Lee. The K stands for Kenneth and he lives in Edina, Minnesota. Jolly cold up there, or at least it was I worked for IBM in Rochester, MN.

 

I can vouch for this! Minnesota is a miserable place to live between November and April. Unfortunately, it's nothing to celebrate the rest of the year either.

 

As I recall, before coming to Leica Lee was previously an executive at Best Buy, a consumer appliance reseller (think Comet or Curry's) that is also headquartered in the Minneapolis area.

 

Jeff.

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So here is some information on Leica Camera Ltd, the wholly owned UK subsidiary of Leica Camera AG, all pulled from published resources.

 

1. Sales for year ending 31 March 2008 were £7,907,000. They made a Gross Profit of £1,872,000, a gross margin of 30%.

 

2. Their net profit before tax was £307,000, tax paid £97,000, retained profit £210,000, dividends 0.

 

3. Their net assets were £1,698,000. The Directors of the Company, 4 of them, paid themselves a very modest £93,000.

 

4. One of the Directors at the time was a certain Stephen K Lee. The K stands for Kenneth and he lives in Edina, Minnesota. Jolly cold up there, or at least it was I worked for IBM in Rochester, MN.

 

5. Leica Camera Ltd issued share capital is a sizeable £0.02, both £0.01 shares being owned by Leica Camera AG.

 

6. Leica Camera Ltd have a very good credit rating; a Credit Limit of £170,000 is thought appropriate.

 

7. One of the Directors lives a little less than 2 miles from the Leica office and takes 6 minutes to get to work. The house he lives in was sold for £272,000 in September 2008.

 

8. In 2008, Leica Camera Ltd had 19 employees who between them earned £509,000.

I think you need to get out more
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Guest BigSplash
So here is some information on Leica Camera Ltd, the wholly owned UK subsidiary of Leica Camera AG, all pulled from published resources.

 

1. Sales for year ending 31 March 2008 were £7,907,000. They made a Gross Profit of £1,872,000, a gross margin of 30%.

 

2. Their net profit before tax was £307,000, tax paid £97,000, retained profit £210,000, dividends 0.

 

3. Their net assets were £1,698,000. The Directors of the Company, 4 of them, paid themselves a very modest £93,000.

 

4. One of the Directors at the time was a certain Stephen K Lee. The K stands for Kenneth and he lives in Edina, Minnesota. Jolly cold up there, or at least it was I worked for IBM in Rochester, MN.

 

5. Leica Camera Ltd issued share capital is a sizeable £0.02, both £0.01 shares being owned by Leica Camera AG.

 

6. Leica Camera Ltd have a very good credit rating; a Credit Limit of £170,000 is thought appropriate.

 

7. One of the Directors lives a little less than 2 miles from the Leica office and takes 6 minutes to get to work. The house he lives in was sold for £272,000 in September 2008.

 

8. In 2008, Leica Camera Ltd had 19 employees who between them earned £509,000.

 

What is a surprise to me is that Leica UK declared a £307K profit and then paid a £97K UK tax on this....at a time that Leica Camera AG was making a significant loss in Germany. I presume that there is a strategy to offload profits and losses from the center to fully owned subsids. to achieve tax optimisation and of course remaining legal.

 

It is quite normal for example to levy a corporate royalty fee for IPR, R&D contribution, Corporate overhead costs including marketing towards fully owned subsidiaries.

 

It will be interesting to see how this evolves in the next fiscal year as it is difficult to change the accounting strategy on an annual basis. without a good rationale. The inland revenue are sensitive to that one.

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Guest BigSplash
There's always a twist in your posts Frank. Every single thing you write here has an underlying thread of doom and gloom to it. Why is that?

 

I am trying to understand how you get doom & gloom out of my post above...Please explain.

 

I say:

> Leica has posted a profit in the UK and have declared a loss in Germany.

 

> I see it as an opportunity to actually share the Leica AG Germany loss across the country subsidiaries. (They have apparently opted to NOT do this in the last fiscal year)

.

> In future years I point out that they could finish up , quite legally, paying less taxes using well established international accounting rules

 

 

How on earth do you see anything at all negatively that remotely represents doom & gloom. For goodness sake stop this behavior it is really tiresome. You clearly did not digest my thread, you have a biassed view (like some of your mates) about any posting I give ...get real and read what I say before you comment. Otherwise you just look ridiculous.

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What is a surprise to me is that Leica UK declared a £307K profit and then paid a £97K UK tax on this....at a time that Leica Camera AG was making a significant loss in Germany. I presume that there is a strategy to offload profits and losses from the center to fully owned subsids. to achieve tax optimisation and of course remaining legal.

 

It is quite normal for example to levy a corporate royalty fee for IPR, R&D contribution, Corporate overhead costs including marketing towards fully owned subsidiaries.

 

It will be interesting to see how this evolves in the next fiscal year as it is difficult to change the accounting strategy on an annual basis. without a good rationale. The inland revenue are sensitive to that one.

 

Your words, my highlighting, as requested.

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8. In 2008, Leica Camera Ltd had 19 employees who between them earned £509,000.

 

I wonder what they all do - presumably a mix between accounts, marketing, admin, customer service but how many technicians?

 

I had my M3 serviced by Leica UK a couple of years ago soon after I bought it and they did a wonderful job with it, smooth as butter.

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Guest BigSplash
Your words, my highlighting, as requested.

 

You do not get it. They made a loss in Germany and declared a profit in UK where they then had to pay a tax on that profit......Why not declare a loss in both places and pay no tax in UK? Why not organise legal entity reporting to optimise the tax paid........This has nothing to do with doom and gloom.

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I swear there once was a time when this forum was primarily about photography... Or maybe I'm mixing it up with Rangefinder Forum or one of those other places....
Well said Alun. I have no interest in the goings on at Leica only to say that they seemed very helpful when I spoke to them
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Kenneth, it's good to hear they were helpful when you spoke to them but the reason they were there at all is that they're still in business and the purpose of my post - trivia aside - was to show, for the most recently reported results at least, that Leica in the UK is a profitable business.

 

We can't tell the whole story of course - the company's main supplier is also its owner so there may be some distortions - but at face value, Leica Camera Ltd is a viable business.

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Sorry, yes, I should have posted this in Barnack's Bar...

 

Mark

 

I think that Alun's post was referring to the large number of "business orientated posts" that have been on the forum recently.

 

This particular information is very interesting in and of its self and is highly relevant.

 

Long may Leica Camera Ltd's success continue :)

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Well said Alun. I have no interest in the goings on at Leica only to say that they seemed very helpful when I spoke to them

 

Come now Kenneth, I'm sure you're dead chuffed to find out Stephen K Lee's parents gave him the same name as a future member of the Leica User Forum ;)

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