Top Ten Bingo is blaming the tax man for its latest loss and the closure of its 16 bingo clubs. The company operates just 24 bingo clubs now having grown in size to 40 clubs several years ago.

Graham Kerr the Chairman at Top Ten Bingo claimed that Revenue & Customs owed the company around £20 million which has left the company struggling to operate properly. He added that there were likely to be further closures of bingo clubs with staff facing redundancy.

The company has recorded a third consecutive annual loss and claims to have received only £3.5 million in VAT repayments.

Since its aggressive expansion program just a few years ago the company is the UK’s third biggest bingo operator but has around £30 million worth of debt  The company merged with Walkers Bingo, purchased Appollo and bought out many smaller operators for what was claimed at the time was ‘a high price’. The company seemed to have ambitious plans in regards to electronic bingo had it been successful the Top Ten brand may have become a market leader. However this was not to be the case and the company stiggled to cope with the smoking ban. As admissions plummeted the company had to resort to the closures of 40% of the estate. Still unable to make a profit the cash from the sale of properties has not been used to make any significant reduction in the company debts. Shareholders in the company have lost nearly all their investments as the share price was practically wiped out and the company decided to de-list the company from the AIM stock market.

Accounts filed for the year ending March 28, 2010 show that turnover fell by almost a fifth from £25.6 million to £20.7 million. The firm recorded a loss of £8.2 million after losing £5.9 million the previous year.

We reported last week how Rank, the operator of Mecca Bingo, have insured around two thirds of the £66 million they have received back from Revenue and Customs, leaving it with just £25.6 million in liabilities. Rank had argued that some bingo games and fruit machines should not be subject to VAT, a view that was supported at a tribunal and a Court of Appeal. The issue has now been referred to the European Court of Justice.

Top Ten are using the same auditor as Buckingham Bingo, KPMG. Last week it was reported how KPMG was considering all the possibilities including a sale of Buckingham Bingo after a series of poor trading reports. In relation to Top Ten Bingo, KPMG, warned last week that uncertainty over the final outcome of the dispute was casting 'significant doubts' over Top Ten's ability to stay in business.

It would appear that if you are looking to get a good deal on the purchase of a bingo club or clubs at the moment the first point of call is KPMG.