JOY Seppala’s secretive hedge fund Sisu Capital posted a £434,000 net loss for the year to the end of March after being hit by a huge tax charge by HMRC, accounts show.
Sisu Capital, co-founded 14 years ago by Seppala and business partner Dermot Coleman, posted a £272,300 loss before tax, slightly better than the £376,300 loss it made in the year to March 2010. This second consecutive loss is a far cry from the £10.6m pre-tax profit Sisu made in the year to March 2008 and £17m profit in 2007.
The high post-tax figure was caused by a £161,752 tax charge from the conclusion of an HMRC probe into Sisu’s tax payments from 2006 to 2008.
Sisu, a low-profile fund with Mayfair headquarters and no website, specialises in buying distressed debt and has a reputation for aggressive tactics to recoup funds when it invests.
It took control of Coventry City football club in 2007 after unsuccessfully bidding for Southampton, Derby and Manchester City. But while it has spent a reported £25m on the club, City’s debt remains at £40m and is growing by £500,000 per month.
The firm paid £1.493m in salaries to 25 employees over the year, down from £1.723m in 2010.