The owner of the Daily Telegraph has warned of “potential irregularities” in its accounts following a loan extraction of £278m by the Barclay family, which it says may never be recovered.
According to accounts filed on Wednesday, the Telegraph Media Group allocated a £278m provision for funds transferred to its parent companies, controlled by the Barclay family.
The debt has plunged the media conglomerate into heavy losses of £244.6m in 2023, down from a profit of £33.3m in the previous year.
The Telegraph said: “A detailed review of historic transactions was undertaken in respect of amounts paid to, and received from, group companies and related parties.
“The review identified potential irregularities in the recording of such transactions and although there have been no changes to the assets and liabilities recorded, there is a potential risk of future possible repayment claims against the company and group in respect of such transactions.”
Last year, Lloyds Bank gained control of the right-leaning titles after the Barclays defaulted on £1.16bn in debts. A subsequent sale to RedBird IMI, an Abu Dhabi-backed investment entity, was thwarted by the UK government due to concerns about foreign ownership of a national newspaper.
Now, a renewed auction for the group’s Daily Telegraph and Spectator titles is underway.
A spokesperson for the Barclays said the family was “proud of its track record of investment in TMG, which under its ownership has been transformed into a successful digital and print media brand, with over 1m subscribers.
“Throughout the family’s ownership the business has been managed responsibly and within all legal frameworks, with all accounts approved by auditors,” they added.
Although the Barclays technically still own the newspaper group, it is controlled by a group of independent directors.