As you can see from the above, the accounts show a loss. However, from the losses utilised and the tax charge, we can calculate what taxable profits were.
This is calculated as (utilised losses + tax charge) / 30% (the rate of tax).
This gives taxable profits of £12.8m for 2006 and £19.8m for 2007.
You can see that the UK accounting profits are not representative of UK taxable profits. This reconciliation note explains why. There are significant adjustments in relation to depreciation and disallowable expenses (royalties perchance?).
If Starbucks had continued to produce results at the level of 2007, they would have paid tax in the region of £6m a year.
These accounting periods coincide with the use of the word “profitable” which Thomson Reuters drew attention to in their original report.
There is no suggestion that they said the UK was profitable throughout the 12 year period of losses in the UK.
This shows that even though UK accounts show a loss, Starbucks were making taxable profits in the UK at the time they were described as profitable.