The Defence Science and Technology Laboratory Annual Report and Accounts 2009/10 HC 138 £19.75 Defence Science and Technology Laboratory Annual Report and Accounts 2009/10 Presented to Parliament pursuant to section 4 (6) of the Government Trading Funds Act 1973 as amended by the Government Trading Act 1990. Ordered by the House of Commons to be printed on 21 July 2010. XX July 2010. HC 138 London: The Stationery Office £19.75 1 Note: on 1 July 2001, in accordance with the Statutory Instrument 2001 No. 1246, the Defence Science and Technology Laboratory (Dstl) was created as a result of the separation of the Defence Evaluation and Research Agency (DERA); Dstl continuing as the Trading Fund. © Crown Copyright 2010 The text in this document (excluding the Royal Arms and other departmental or agency logos) may be reproduced free of charge in any format or medium providing that it is reproduced accurately and not used in a misleading context. 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ISBN: 9780102967333 Published by TSO Printed in the UK for The Stationery Office Limited on behalf of the Controller of Her Majesty’s Stationery Office ID P002374194 07/10 Printed on paper containing 75 per cent recycled fibre content minimum. 2 Contents Overview 04 Who we are 04 Chairman’s statement 06 Chief Executive’s statement 08 Business review 10 Key Targets 10 Customers and markets 14 Operations review 16 Technology transfer 20 Financial review 22 Our external networks 26 Our people 28 Statement by Dstl Trades Unions 30 Awards and honours 32 Sustainability 34 Statement on internal control 38 Our Board of Directors 44 Directors’ remuneration report 47 Accounting information 51 3 Overview Who we are The work we do As an agency of MOD, our role is to Our work is divided into several We do not undertake fundamental maximise the impact of Science categories. We: research and we do not directly and Technology (S&T) for UK compete with industry for the defence and security, drawing on • lead the formulation and delivery of provision of services to MOD. Dstl the capabilities within Dstl and the MOD’s non-nuclear research exists solely to provide those S&T wider supply base in industry and programme* services that it would be academia. • undertake applied scientific research inappropriate to source from the in sensitive areas that need to be private sector and those activities As well as delivering directly, we are kept within Government that must be carried out in the agent for the wider S&T • provide independent and high-quality Government to sustain MOD’s community to engage with MOD, advice and support in areas as capability to be an intelligent including their contribution to diverse as policy formation, customer and to build productive research and advice. equipment development and current relationships with suppliers and in-theatre operations others. Our programme of work ranges from • undertake horizon scanning to S&T support for Urgent Operational identify and help customers to Requirements (UORs) in understand and exploit the Afghanistan through to policy opportunities and threats offered by advice and analysis for senior advances in S&T defence personnel. Our world-class • transfer knowledge to and from scientists and engineers also deploy industry and the university sector to operational theatres to provide while supporting the wider S&T advice to troops on the front line. community to understand defence requirements Dstl’s expertise is increasingly being • spin off knowledge for civil called upon to meet wider applications and undertake Government requirements. For collaborative research with other example, we are working closely institutions, in accordance with with the Office of Security and MOD policies. Counter Terrorism to shape and deliver the science element of the UK counterterrorism strategy. Where appropriate, we also spin off knowledge for civil applications in a range of areas from liquid repellent coatings for combat clothing through to accelerated wound- healing technologies. * Role assumed from 1 April 2010. 4 P2i is the world leader in liquid repellent nano-coating technology. © P2i Limited 5 Chairman’s statement This Annual Report shows how Dstl is tackling some of the UK’s most demanding security priorities, for example in supporting the Armed Forces in Afghanistan and in its counterterrorism work. Dstl supports the front line in Forces and the future defence outsource work to the private sector. countering Improvised Explosive programme. Scientific and The breadth of this work is driven by Devices (IEDs), contributes to our technological change is key to both the demands of our government intelligence effort in respect of this risks and opportunities. The customers. Our aim is to be an agile, and other challenges, and provides potential impact of the security risks forward-looking organisation with a variety of advisory and analytical and the scale of the Government world-class people. services. Dstl staff, embedded with resources involved highlight the our forces on the ground or working importance of being able to call on As an agency and a Trading Fund, with MOD colleagues in bringing first-rate research and analytical we have a strong focus on efficiency Urgent Operational Requirements capabilities. as well as on meeting key customer (UORs) into service, are integral to needs. This can be seen in our the success of our military effort. This report captures some of the financial results. This year, revenues contributions made by Dstl in are higher because Dstl has been At the same time, security is a long- collaboration with partners in tackling high-priority operational term business. We need, as a government (both in the UK and demands. Costs have been tightly country, to be addressing rigorously overseas), universities and industry. controlled, including successful the risks, threats and opportunities Dstl provides science (including delivery of the i lab (integrated that may emerge and their social science) and technology laboratory) rationalisation implications for our strategy and for services to government in those programme. I am pleased to report a the size and shape of our Armed areas where it is inappropriate to profit of £20.9 million, which will 6 help to generate the cash for our of MOD) as well as Elisabeth (Lis) capital programme. Astall and Jonathan Knowles who both bring top-level, private-sector Dstl’s success depends on the experience. We have also welcomed quality and commitment of its two new executive directors – Mark people. This year, the Board has Alexander has joined us as Finance been pleased to see encouraging Director and Jonathan Lyle has results in the recent staff survey joined us as Director of the new and also Investors in People Programme Office. reaccreditation. In my own meetings with staff, I am always struck not only Following MOD’s major review of the by their expertise but also by their provision of S&T within the defence enthusiasm and pride in the very programme, Dstl has taken on an important work with which they are expanded role from financial year engaged. 2010/11. The outcome of the review represents a vote of confidence in This year has seen some changes to Dstl and our Chief Executive, Frances the Board. We have welcomed three Saunders, and I congratulate her and new non-executive members – all of her Dstl colleagues on their Emma Davies (as the representative achievements in 2009/10. Sir Richard Mottram Chairman 24 June 2010 7 Chief Executive’s statement The success of Dstl as an organisation and whether our business is established Science and Technology needs to be judged against various developing in the right way as a Centres in chemical, biological and factors, not just the strength of its consequence. These all are relevant radiological defence; cyber and financial performance – although you questions to ask of a business such influence, and armour and protection. will see from the figures presented in as Dstl, which only thrives if it is The intention here is to work ever this Annual Report that we have judged to be genuinely useful to its more closely with other funders and exceeded our initial expectations for customers in Government. suppliers in the planning, review and the year. Other issues we need to delivery of our programmes in these consider include: Did we deliver work Providing the highest level of areas. for our customers to agreed professional support to the front line – timescales and costs and to the whether abroad in Afghanistan or in As an S&T organisation within highest technical standards? Did that the UK – remains our top priority. The Government, providing this effective work have impact? Was the advice we pace of this work is so rapid, and the interface with industry, academia and provided used or was the technology need to exploit the best ideas is so the international community plays a or solution we developed pulled vital, that Dstl can only deliver if it key role in delivering our mission, and through for exploitation? Have we works ever more effectively with indeed the overarching missions and worked effectively with our sub- others. We are developing new ways policy agendas of wider Government. contractors and suppliers? Are we of working with industry and the wider We have continued to develop our attracting and retaining the most S&T communities. The IED Tiger support and impact on the wider UK talented S&T staff and developing the Team is one example where we have security agenda and grown our capabilities that our customers will brought together people from across business again this year as a result.