Annual report WELCOME TO YORKSHIRE ANNUAL REPORT AND ACCOUNTS
2009/10
1 ANNUAL REPORT AND ACCOUNTS 2009/10
Welcome to Yorkshire, working with the tourism industry, local authorities and the wider business community in Yorkshire, has delivered impressive results since it was launched almost two years ago. The renaming of the former tourist board also created a new brand for Yorkshire as part of an increased investment in tourism to £10 million annually. That investment is matched by public and private sector funding, in cash and in kind.
OUR ACHIEVEMENTS • The value of tourism went up 6.6%, an increase of £390 • Over a third of tourist attractions reported an increase in million from 2008 to 2009. It is worth c. £7 billion to visitor figures of more than 10% in summer 2010. This is Yorkshire’s economy, and supports 250,000 jobs directly the second year of increased business across the sector. and many more indirectly. • The official tourism website, www.yorkshire.com has had • In 2009 trips to Yorkshire totalled 216 million, up 10% a staggering 3.3 million unique visitors since launch. (equivalent to 19 million more visitors) on 2008. • More than £60million worth of media coverage about • For every £1 invested we have delivered £40 into the Yorkshire as a holiday destination has been generated Yorkshire economy. In turn this has generated £9 to the since launch. Exchequer, £86 million total in tax. • Strong private sector support with more than 3,000 • Visits to Yorkshire are up 22% since the launch of tourism businesses partnering Welcome to Yorkshire. Welcome to Yorkshire (compared to UK 12% increase). The industry is now working together as a strong team. (Source UKTS). • More than 300 Yorkshire Patrons, influential business • Visits to seaside resorts up by 27% in the same period. leaders and celebrities taking the Yorkshire message (Source UKTS). to a global audience.
• 2009/10 Regional Visitor Survey indicates 97% of • Strong support from local authorities. The value of visitors would recommend Yorkshire as a place to visit Yorkshire wide marketing for tourism recognised with 89% very likely to return to Yorkshire within 2 years. through commitments in all Local Economic Partnership bids. • Jan - June 2010 - Domestic holiday visits up 7% in Yorkshire. (3% decrease in UK / 5% decrease in England). (Source UKTS).
For every £1 invested we have delivered £40 into the Yorkshire economy
£40
Government In£86m turn this has generated £9 to the Industry Exchequer, £86 million total in tax
£1
Invested Generated
2 ANNUAL REPORT AND ACCOUNTS 2009/10
KEY ACTIVITIES • Fully integrated marketing campaigns for 2009 • Wrapped 10 Northern rail trains with Welcome to “A Long Weekend in Yorkshire Isn’t Long Enough” and Yorkshire branding and images being seen in Yorkshire 2010 “There’s a Whole Lot More Going on in Yorkshire”. and the North West regions. ROI for the 2009 campaign was 63:1. The 2010 campaign • Digital marketing campaign through significant is not yet fully evaluated as it is still running, though redevelopment of the Yorkshire.com, including versions preliminary indications show that it has also significantly in Chinese and 5 European languages, and adoption of contributed to the awareness of Yorkshire as a innovative approaches such as a bluetooth mobile tourism destination. visitor guide. • 5 businesses partner our latest TV ad making coverage • The Yorkshire Rhubarb Crumble and Custard garden go further. wins the People’s Choice Award at Chelsea. Gardens • Sponsorship of Heartbeat and The Royal was seen by a campaign launched. Yorkshire gardens report visitors total of 4.7m ABC1 adults. are up on last year.
Clockwise from top left: Yorkshire’s Michelin Star Chefs with Chief Executive Gary Verity in the Rhubarb Crumble & Custard Garden, 2009 campaign, Y Gardens identity, Newby Hall Garden, Branded trains, Alan Titchmarsh in our garden at Chelsea Flower Show.
3 ANNUAL REPORT AND ACCOUNTS 2009/10
KEY ACTIVITIES • Sponsorship of the Railway Children at the • Support for Bradford as the Unesco City of Film. Welcome to Yorkshire Theatre at Waterloo Station. Film trail developed. The production has been a huge success with more • Over 10,000 trips have been taken on the new than 100,000 visitors. sightseeing bus and boat around Leeds. • The Welcome to Yorkshire Scarborough Open • Golf campaign launched. Air Theatre reopens to packed houses throughout the summer. • Yorkshire’s Michelin star chefs get behind the Michelin Star Experience celebrating the best of Yorkshire’s food. • The Turner Trail is launched celebrating the artist’s work across the county.
Clockwise from top left: Michelin Star Experience, The Railway Children at Waterloo, Y Golf identity, Scarborough Open Air Theatre, Leeds City Sightseeing Bus.
4 ANNUAL REPORT AND ACCOUNTS 2009/10
KEY ACTIVITIES • Sponsorship of the Ebor and the Go Racing in Yorkshire • A film in New York taxis encourages visitors to spend Summer Festival beams Welcome to Yorkshire around their vacation in Yorkshire. the globe. • Sponsorship of the Chengdu Blades takes Yorkshire’s • Sponsorship of Yorkshire Cricket keeps our message message to China. on the nation’s sports pages and we invest in improving • A new business tourism strategy brings facilities at the Scarborough cricket ground. £2 million pounds of conference sales in just • International campaigns are run in Ireland, France, Italy, six months (2009/10 full year £1.4 million). Spain, Netherlands, Germany, USA, Canada, China, Singapore, Hong Kong, India and Australia.
Clockwise from top left: WTY banner at Ebor, Chengdu Blades banner, Clipper sailing into New York, York Races, Yorkshire Cricket, Chengdu Blades.
5 ANNUAL REPORT AND ACCOUNTS 2009/10
RECOGNISING OUR SUCCESS • Awarded World’s Leading Marketing Campaign at the • International Business Forum Most Innovative 2010 World Travel Awards for “A Long Weekend In Marketing Campaign Award 2009 for “A Long Yorkshire Isn’t Long Enough”, against Abu Dhabi, Etihad Weekend in Yorkshire Isn’t Long Enough”. Airways, Johannesburg, Kuoni, Qatar and Scotland. • Northern Marketing Award for Most Effective • Awarded Europe’s Leading Marketing Campaign in the Public Sector Campaign 2009. World Travel Awards - beating Spain, Denmark, Australia, • RHS Chelsea Silver Medal & People’s Choice Award Malaysia, Peru, Thomas Cook, Visit London. for the Welcome to Yorkshire Rhubarb and Custard • Shortlisted for World’s Leading Tourist Board 2010 – Garden 2010. against Las Vegas, Jamaica, India, the Maldives, New • Travel Mole Award for Best Tourism Website Yorkshire. York and Dubai. com in both 2009 and 2010.
• Travel Mole Award for Best Use of Video 2010.
• Travel Marketing Awards 2010. Gold Award Best Magazine Silver Award Best Website
6 Financial statements
FOR 31 MARCH 2010
A COMPANY LIMITED BY GUARANTEE (FORMERLY YORKSHIRE TOURIST BOARD)
7 CONTENTS
8 OFFICERS AND PROFESSIONAL ADVISORS
9 THE DIRECTORS’ REPORT
12 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS
14 INCOME AND EXPENDITURE ACCOUNT
15 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
16 BALANCE SHEET
17 CASH FLOW STATEMENT
18 NOTES TO THE FINANCIAL STATEMENTS
OFFICERS AND PROFESSIONAL ADVISORS
THE BOARD OF DIRECTORS
CHAIR REGISTERED OFFICE Dry Sand Foundry Clare Morrow Foundry Square Holbeck EXECUTIVE DIRECTOR Leeds Gary Verity LS11 5DL
NON EXECUTIVE DIRECTORS AUDITOR Barron & Barron E Bedford OBE (resigned November 2009) Chartered Accountants C Brown & Statutory Auditor N Pakey (resigned May 2010) Bathurst House Prof R Thomas (resigned November 2009) 86 Micklegate L Pollard (appointed April 2009) York Cllr A Waller (appointed April 2009) YO1 6LQ Cllr A Barker (appointed April 2009) D Lascelles (appointed April 2009) BANKERS Barclays D Mischendahl (appointed April 2009) 193 High Street G Akbar (appointed April 2009) Northallerton M Firth (appointed April 2009) DL7 8LF J Anderson (appointed November 2009) (resigned October 2010)
COMPANY SECRETARY S Charters (appointed November 2009) Z Wilde (resigned November 2009)
8 THE DIRECTORS’ REPORT YEAR ENDED 31 MARCH 2010
The directors present their report and the financial Welcome to Yorkshire as a combined brand and name for statements of the company for the year ended the company (formerly the Yorkshire Tourist Board) was 31 March 2010. launched in April to the Y09 tourism conference, attended by 1,000 people from across the tourism industry and the CHANGE OF NAME wider Yorkshire economy. The company passed a special resolution on 23 November Our integrated marketing campaign “A Long Weekend in 2009 to change the name of the company from Yorkshire Yorkshire Isn’t Long Enough” used traditional advertising Tourist Board to Welcome to Yorkshire. The Registrar of channels as well as a co-ordinated digital campaign to Companies issued a Certificate of Incorporation on achieve a high level of awareness in both traditional Change of Name on 4 December 2009. and newer markets. It included television advertising and sponsorship of ITV’s Heartbeat, The Royal and PRINCIPAL ACTIVITIES peak time drama on ITV3 over a sustained period AND BUSINESS REVIEW from April to November reaching 4.7m target adults. The principal activity of the company during the year This was accompanied by advertising in targeted cinemas was the promotion of tourism in the Yorkshire and the in London and Yorkshire, an outdoor campaign including Humber region. extensive coverage on poster sites at London’s main railway stations, and press and newspaper advertising. Review of the Year All the activity directed visitors to Yorkshire.com which This period under review in this report is from 1st April was relaunched in April 2009 with a new front end with 2009 to 31st March 2010, the first year of a three year richer content including video and high quality images. Regional Tourism Programme contract with the regional Bluetooth technology was used to get messages to development agency Yorkshire Forward for increased visitors at key sites across the region, for example investment in Yorkshire’s tourism industry totaling Leeds Bradford airport. £34 million, or up to £10 million plus VAT per year. The overall campaign achieved a Return on Investment of (2009 £6.3 million) 63:1 (compared to 30:1 last year), and reached a total ABC1 In addition to this contract, in January 2010 the RDA audience of 16.5m, or 94% of the target population. contracted with Welcome to Yorkshire for the development We embarked on a concerted press and media campaign and delivery of major events and the “Destination to accompany the marketing, using every opportunity Yorkshire” project to enhance the effectiveness of regional to get Yorkshire’s tourism product and Welcome to promotional activities, this latter project being combined Yorkshire talked about in newspapers, trade press, radio with the existing contract held for Yorkshire Gold and television. This included targeted activity in China, (2012 Olympic activity). These were valued in total and Singapore as part of maximizing the benefits of the at up to £1m for the year under review, and over Hull and Humber in the round the world Clipper race. £2m per year subsequently. The vessel sailed into key ports sporting a Welcome to The principal activity of the company is the marketing of Yorkshire sail. The value of media activity in the year Yorkshire to potential visitors, within the county, across the was £37 million pounds. UK and internationally. The key performance measures of The success of the campaign was recognized by the contract are a 5% increase in tourism spend annually the industry with a number of awards: and match funding of £1 from the public or private sectors for each £1 claimed from Yorkshire Forward. In 2009/10 • International Business Forum Most Innovative the value of tourism spend in Yorkshire rose by £360 Marketing Campaign Award 2009 for “A Long million, a growth of 6.6% against the 5% target. Match Weekend in Yorkshire Isn’t Long Enough”. funding from the public and private sector was £8 million. • Northern Marketing Award for Most Effective The year saw considerable success in raising consumer Public Sector Campaign 2009 awareness of Yorkshire as a place to visit or for residents • Travel Mole Award for Best Tourism Website to stay in. We increased the profile of the industry as Yorkshire.com a key sector for the regional economy, and galvanized businesses and local authorities to work together more closely as a team across the county to raise the value of the visitor economy.
9 THE DIRECTORS’ REPORT YEAR ENDED 31 MARCH 2010
The company also provides a leadership role to the The major events contract is for work securing best value industry, including advocacy and lobbying on issues of from events already contracted by Yorkshire Forward, concern to operators, encouraging product development included promotional activity, and for the development of and improvements to the quality of the tourism offer further work around festivals and events. The remaining across Yorkshire. funding is for activity to drive the region’s involvement with the 2012 Olympics and Paralympics and for activity Welcome to Yorkshire worked closely throughout the encouraging a number of agencies also funded by period with the six tourism partnerships, Visit York, Visit Yorkshire Forward to work together to maximize efficiency Hull and East Yorkshire, Yorkshire South Tourism, the and avoid duplication. It has resulted in a number of joint Moors and Coast Tourism Partnership, the Dales and projects. The partners are the Regional Food Group, Harrogate Tourism Partnership and the West Yorkshire Screen Yorkshire, the Arts Council, and Marketing Leeds. Tourism Partnership. These are varying models of public/private partnerships funded from a range of A number of new board members were appointed to sources. In most cases employment of the Chief serve from April 1st 2009, bringing a range of new skills. Executives of the partnerships transferred to Welcome Representatives from our funder Yorkshire Forward and to Yorkshire and they were seconded back in to the from Local Government Yorkshire and Humber joined the partnerships. In West Yorkshire a different model was board at the same time. established in which the Chief Executive and a small staff were employed directly by Welcome to Yorkshire, FINANCIAL AND working alongside an advisory board of public and NON-FINANCIAL PERFORMANCE private sector representatives. The Company is a Not for Profit Organisation (“NPO”). The Chief Executives of the partnerships formed part of Funding is primarily by grants through contracts with the senior management team of Welcome to Yorkshire, Yorkshire Forward. As an NPO the key financial indicators in addition to the Head of Marketing, International Sales include achieving a rolling break even income and Director, Communications Director, Operations Director expenditure account, Net Current Assets and Net and Special Projects Director. All report directly to the Assets in the balance sheet and positive cash flows. Welcome to Yorkshire Chief Executive. Any surplus is re-invested in the aims of the business and is not available for distribution. The primary function of the area partnerships is business engagement, and they are funded by Welcome to The accounts for the current year show a surplus Yorkshire to deliver a range of outputs, including training, on ordinary activities of £31,000. At 31st March 2010 the signposting of business support, initiatives to raise Net Current Assets amounted to £1,302,000 (2009 quality, increased use of ICT and opportunities to network £1,184,000) and Net Liabilities of £559,000 with other tourism businesses. Welcome to Yorkshire also (2009 Net Assets £95,000). funds some conference sales desk staff through these The decrease in Net Assets is due entirely to the increase partnerships to support our business tourism objectives. in the liability of the company defined benefit pension The partnerships also undertake a range of additional scheme. The valuation of the scheme, though benefitting activity, for which they receive funds from sources other from comparatively good investment returns, was hit than Welcome to Yorkshire. by a significantly lower discount rate in 2010 (5.7% compared to 7.1% in 2009) which substantially increased Engagement with tourism businesses improved the valuation of the scheme’s liabilities. This scheme was significantly over the period and confidence in the industry closed in March 2009 and a defined contribution scheme has grown as businesses have started to see the effect commenced in the current year, with the aim of securing of the powerful marketing campaigns. The White Rose the long term financial stability for the company. Although Awards which celebrate quality in the industry were this is essentially a long-term liability, the directors are attended by 850 people and the Y09 conference by 1,000. investigating a number of options to mitigate this risk. The public have also become increasingly engaged in what we are doing as consumer awareness of Yorkshire as a Cash balances at 31st March 2010 continue to be adequate place to visit has grown. 6,000 people attended our stand to support our needs, and reflect the result of ordinary at the Great Yorkshire Show in July 2009. This is our main activities of the company through the timing of activities, consumer facing direct engagement activity. claims and receipts at the year end.
10 THE DIRECTORS’ REPORT YEAR ENDED 31 MARCH 2010
LOOKING AHEAD Company law requires the directors to prepare financial statements for each financial year. Under that law the We have continued to make good progress since April directors have elected to prepare the financial statements 2010 with clear evidence that the additional investment in accordance with United Kingdom Generally Accepted in tourism and our work is proving effective in raising Accounting Practice (United Kingdom Accounting the value of the visitor economy. Standards and applicable law). Under company law the Undoubtedly, however, the next year will see considerable directors must not approve the financial statements unless challenges as we move to a new funding model. We are they are satisfied that they give a true and fair view of not immune to the issues facing public expenditure and, in the state of affairs of the company and of the surplus or particular, reductions proposed by Yorkshire Forward for the deficit of the company for that period. In preparing those final year of the funding contract. Whilst we will continue to financial statements, the directors are required to: oppose the proposed level of any such reduction, the level • select suitable accounting policies and then apply of proposed funding will still allow us to continue elements them consistently; of our objectives for 2011/12, and sustain a viable business model whilst we also seek additional funding from other • make judgements and estimates that are reasonable sources. For example, we will continue to grow partnerships and prudent; to support our individual campaigns and are looking to • prepare the financial statements on the going concern utilise our highly regarded marketing skill set to generate basis unless it is inappropriate to presume that the commercial income for the company. We are also working company will continue in business. closely with national and local government to ensure that high quality promotion of the key tourism industry for the The directors are responsible for keeping adequate county remains in place during and beyond the time span accounting records that are sufficient to show and explain of the current funding contract. the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company We face the future with confidence and with a high level and enable them to ensure that the financial statements of support from across the county to continue our work. comply with the Companies Act 2006. They are also However, due to the considerable current uncertainties responsible for safeguarding the assets of the company regarding future funding, the above should be read in and hence for taking reasonable steps for the prevention conjunction with the observations regarding the basis of and detection of fraud and other irregularities. preparation of the financial statements in note 2 on page 20. In so far as the directors are aware:
RESULTS • there is no relevant audit information of which the company’s auditor is unaware; and The profit for the year, after taxation, amounted to £31,239. • the directors have taken all steps that they ought to FINANCIAL RISK MANAGEMENT have taken to make themselves aware of any relevant OBJECTIVES AND POLICIES audit information and to establish that the auditor is aware of that information. Details of the financial risk management objectives and policies of the company are provided in note 20 to the AUDITOR financial statements. Barron & Barron are deemed to be re-appointed under DIRECTORS section 487(2) of the Companies Act 2006.
The directors who served the company during the year Signed on behalf of the directors and up to the date of this report are listed on page 8.
Welcome to Yorkshire is a company limited by guarantee and the directors, as members, derive no benefit, income or capital interest in the company’s financial affairs.
DIRECTORS’ RESPONSIBILITIES G Verity Executive Director The directors are responsible for preparing the Directors’ Approved by the directors on Report and the financial statements in accordance with applicable law and regulations.
11 INDEPENDENT AUDITOR’S REPORT YEAR ENDED 31 MARCH 2010
We have audited the financial statements of Welcome RESPECTIVE RESPONSIBILITIES to Yorkshire for the year ended 31 March 2010 on pages OF DIRECTORS AND AUDITOR 14 to 33. The financial reporting framework that has been applied in their preparation is applicable law and As explained more fully in the Directors’ Responsibilities United Kingdom Accounting Standards (United Kingdom Statement set out on page 11, the directors are responsible Generally Accepted Accounting Practice). for the preparation of the financial statements and for being satisfied that they give a true and fair view. This report is made solely to the company’s members, Our responsibility is to audit the financial statements as a body, in accordance with Chapter 3 of Part 16 of the in accordance with applicable law and International Companies Act 2006. Our audit work has been undertaken Standards on Auditing (UK and Ireland). Those standards so that we might state to the company’s members require us to comply with the Auditing Practices Board’s those matters we are required to state to them in an (APB’s) Ethical Standards for Auditors. auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume SCOPE OF THE AUDIT responsibility to anyone other than the company and the OF THE FINANCIAL STATEMENTS company’s members as a body, for our audit work, for this report, or for the opinions we have formed. An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by directors; and the overall presentation of the financial statements.
12 INDEPENDENT AUDITOR’S REPORT YEAR ENDED 31 MARCH 2010
OPINION: DISCLAIMER ON VIEW GIVEN OPINION ON OTHER MATTERS PRESCRIBED BY THE FINANCIAL STATEMENTS BY THE COMPANIES ACT 2006
In forming our opinion on the financial statements, we Notwithstanding our disclaimer of an opinion on the have considered the adequacy of the disclosures made in view given by the financial statements, in our opinion the note 2 to the financial statements concerning the following information given in the Directors’ Report for the financial material uncertainties that may cast doubt upon the ability year for which the financial statements are prepared is of the company to continue as a going concern: consistent with the financial statements. a) Yorkshire Forward and Future Funding MATTERS ON WHICH WE ARE REQUIRED b) Defined Benefit Pension Scheme Liability TO REPORT BY EXCEPTION
Because of the potential significance to the financial We have nothing to report in respect of the following statements of the combined effect of the multiple material matters where the Companies Act 2006 requires us to uncertainties referred to in the paragraph above, we are report to you if, in our opinion: unable to form an opinion as to whether the financial • adequate accounting records have not been kept, statements: or returns adequate for our audit have not been • give a true and fair view of the state of the company’s received from branches not visited by us; or affairs as at 31 March 2010 and of its surplus for the year • the financial statements are not in agreement then ended; with the accounting records and returns; or
• have been properly prepared in accordance with United • certain disclosures of directors’ remuneration Kingdom Generally Accepted Accounting Practice; and specified by law are not made; or
• have been prepared in accordance with the • we have not received all the information and requirements of the Companies Act 2006. explanations we require for our audit.
GUY WARD (Senior Statutory Auditor)
For and on behalf of
BARRON & BARRON Chartered Accountants & Statutory Auditor Bathurst House 86 Micklegate, York, YO1 6LQ
24 November 2010
13 INCOME AND EXPENDITURE ACCOUNT YEAR ENDED 31 MARCH 2010
note 2010 £ 2009 £
TURNOVER 3 1,008,319 1,703,868 Other operating income 4 9,603,171 6,836,769
10,611,490 8,540,637
OPERATING COSTS: Staff costs 5 2,138,470 1,659,710 Depreciation written off fixed assets 7 – 3,712 Other operating charges 9 8,291,932 6,598,939
OPERATING SURPLUS 7 181,088 278,276
Interest receivable 191 51,413 Interest payable and similar charges 10 (150,000) (69,105)
SURPLUS ON ORDINARY ACTIVITIES BEFORE TAXATION 31,279 260,584
Tax on surplus on ordinary activities 11 40 10,797
SURPLUS ON ORDINARY ACTIVITIES AFTER TAXATION, BEING RETAINED SURPLUS FOR THE FINANCIAL YEAR £31,239 £249,787
Balance brought forward (162,769) (110,556) Actuarial gain/(loss) in respect of defined benefit pension scheme (686,000) (302,000)
Balance carried forward £(817,530) £(162,769)
All of the activities of the company are classed as continuing.
The notes on pages 18 to 33 form part of these financial statements
14 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES YEAR ENDED 31 MARCH 2010
2010 £ 2009 £
Surplus for the financial year attributable to the members 31,239 249,787
Unrealised loss on revaluation of certain fixed assets – (292,500)
31,239 (42,713)
Actuarial gain/(loss) in respect of defined benefit pension scheme (686,000) (302,000)
Total gains and losses recognised since the last annual report £(654,761) £(344,713)
The notes on pages 18 to 33 form part of these financial statements
15 BALANCE SHEET AS AT 31 MARCH 2010
note 2010 £ 2009 £
FIXED ASSETS Tangible assets 12 800,000 800,000 Investments 13 101 101
800,101 800,101
CURRENT ASSETS Stocks 14 16,424 19,067 Debtors 15 1,900,183 2,156,398 Cash at bank 818,645 1,200,729
2,735,252 3,376,194
CREDITORS: Amounts falling due within one year 16 (1,432,814) (2,191,995)
NET CURRENT ASSETS 1,302,438 1,184,199
TOTAL ASSETS LESS CURRENT LIABILITIES 2,102,539 1,984,300
NET ASSETS EXCLUDING PENSION LIABILITY £2,102,539 £1,984,300 Defined benefit pension scheme liability 17 (2,662,000) (1,889,000)
NET ASSETS INCLUDING PENSION LIABILITY £(559,461) £95,300
RESERVES 21 Revaluation reserve 22 258,069 258,069 Income and expenditure account (817,530) (162,769)
MEMBERS’ FUNDS £(559,461) £95,300
These financial statements were approved by the directors and authorised for issue on 24 November 2010, and are signed on their behalf by:
C Morrow G Verity Chair Executive Director
Company Registration Number: 2896762 The notes on pages 18 to 33 form part of these financial statements
16 CASH FLOW STATEMENT YEAR ENDED 31 MARCH 2010
note 2010 £ 2009 £
NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES 23 (371,478) 204,168
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 23 191 51,308
TAXATION 23 (10,797) (13,783)
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT 23 – 9
CASH (OUTFLOW)/INFLOW BEFORE FINANCING (382,084) 241,702
FINANCING 23 – (3,679)
(DECREASE)/INCREASE IN CASH 23 £(382,084) £238,023
The notes on pages 18 to 33 form part of these financial statements
17 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
1. ACCOUNTING POLICIES
Basis of accounting • With effect from 1 April 2009, membership income from tourism partners such as hotels and visitor attractions The financial statements have been prepared under is no longer receivable by Welcome to Yorkshire. Under the historical cost convention, modified to include the the new network structure, this income is now receivable revaluation of certain fixed assets. by one of the six Area Tourism Partners in the Yorkshire As detailed in note 13 to the financial statements, the region - entities that are independent of Welcome company owns all of the issued share capital of two to Yorkshire. unquoted companies registered in England and Wales, As is discussed in more detail in note 6 to the financial being Yorkshire.com Limited and Yorkshire Tourist statements, Welcome to Yorkshire processes the Board Limited. membership income transactions in respect of the These companies are both dormant companies, and have West Yorkshire and Yorkshire Dales and Harrogate balance sheets showing only issued share capital and Area Tourism Partners. associated net current assets. This arrangement is in effect an agency agreement, with Welcome to Yorkshire has not prepared group accounts the income being that of the Area Tourism Partner rather for the year ended 31 March 2010 as it considers that it is than Welcome to Yorkshire - as such, no income or exempt by virtue of s402 of the Companies Act 2006. expenditure is recognised in these financial statements in respect of amounts processed on behalf of and This section states that a parent company is exempt subsequently passed onto other Area Tourism Partners. from the requirement to prepare group accounts if under s405 of the Companies Act 2006 all of its subsidiary Commissions due to Welcome to Yorkshire from the undertakings could be excluded from consolidation. Area Tourism Partners in respect of the processing of membership are recognised as they are earned by s405 of the Companies Act 2006 states that a subsidiary the company. undertaking may be excluded from consolidation if its inclusion is not material for the purpose of giving a true • Yorkshire Forward grant income comprises the amounts and fair view. As the subsidiary companies have modest receivable under various funding agreements in respect issued share capital and neither are or have been active of each financial year. Grant claims are submitted then it is considered that neither is material in the context to Yorkshire Forward in arrears, with income being of the group, and therefore both have been excluded recognised in the financial statements at the same from consolidation. time as the eligible expenditure.
As is discussed in more detail in note 6 to the financial statements, Welcome to Yorkshire processes and Turnover and Other Operating Income submits Yorkshire Forward grant funding claims in Turnover respect of the six Area Tourism Partners.
Turnover represents the amounts derived from the This arrangement is in effect an agency agreement; the ordinary activities of the company and is stated after income is that of the Area Tourism Partner rather than the deduction of value added tax. Welcome to Yorkshire, which merely oversees the claim process and has no entitlement to the resources. As Other Operating Income such, no income or expenditure is recognised in these Other operating income includes income from financial statements in respect of claims processed on membership and grants. The following points should behalf of and amounts subsequently passed onto be specifically noted: other Area Tourism Partners.
• Local Authority income comprises the amount receivable by the company from the various Local Authority members in respect of the relevant financial year;
18 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
Fixed assets Operating lease agreements
All fixed assets are initially recorded at cost. Expenditure Rentals applicable to operating leases where substantially on an item is considered to be fixed asset expenditure, all of the benefits and risks of ownership remain with the and is hence capitalised, provided the asset yields benefits lessor are charged against income on a straight line basis to the company for more than one year (i.e. has a useful over the period of the lease. economic life of more than one year). Pension costs It should be noted that there are cases where expenditure The company contributes to defined contribution on an item is fully recovered under a grant funding pension schemes in respect of certain employees. The arrangement at the time that the expenditure is incurred. contributions payable by the company are charged to the In these circumstances, as any further income generated income and expenditure account on an accruals basis, with by the company from the item (on disposal or otherwise) any outstanding contributions being included in creditors. results in an offsetting reduction in grant funding, then such items are not considered to provide benefits to the The company also operates a defined benefit pension company for more than one year. scheme for certain employees. The assets of the scheme are held separately from those of the company. Depreciation Current service costs, past service costs and gains and Depreciation is calculated so as to write off the cost of losses on settlements and curtailments are charged to the an asset, less its estimated residual value, over the useful income and expenditure account. Past service costs are economic life of that asset as follows: recognised over the vesting period or immediately if the Office Equipment benefits have vested. When a settlement (eliminating all - 5 & 3 years straight line obligations for benefits already accrued) or a curtailment (reducing future obligations as a result of a material No depreciation is charged on freehold buildings on the reduction in the scheme membership or a reduction in grounds that it would be immaterial as the estimated future entitlement) occurs, the obligation and related plan residual value is not materially different from the carrying assets are re-measured using current actuarial assumptions amount and an impairment review is carried out each year. and the resultant gain or loss is recognised in the income Stocks and expenditure account during the period in which the settlement or curtailment occurs. Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow The interest cost and the expected return on assets are moving items. shown as a net amount in the income and expenditure account as other finance costs or income. Actuarial gains Investments and losses are recognised immediately in the statement of Investments in unquoted subsidiary companies are stated total recognised gains and losses. at cost less amounts written off. Pension scheme assets are valued at fair value at the Finance lease agreements balance sheet date. Fair value is based on market price information and in the case of quoted securities is Where the company enters into a lease which entails the published bid price. Pension scheme liabilities are taking substantially all the risks and rewards of ownership measured on an actuarial basis using the projected unit of an asset, the lease is treated as a finance lease. The method and are discounted to their present value using asset is recorded in the balance sheet as a tangible a rate equivalent to the current rate of return on a high fixed asset and is depreciated in accordance with the quality corporate bond of equivalent currency and term above depreciation policies. Future instalments under to the scheme liabilities. Pension scheme surpluses (to such leases, net of finance charges, are included within the extent that they can be recovered) and deficits are creditors. Rentals payable are apportioned between the recognised in full on the balance sheet. finance element, which is charged to the income and expenditure account on a straight line basis, and the Any deferred tax asset attributable to the defined benefit capital element which reduces the outstanding obligation pension scheme liability is considered to be immaterial for future instalments. given the likely quantum of any future operating surpluses; as such, no deferred tax asset is recognised in these financial statements.
19 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
The balance sheet shows a net liability position of £559,461 b) Defined Benefit Pension Scheme Liability at 31 March 2010, primarily as a result of the defined As is illustrated in note 17 to the financial statements, benefit pension scheme liability. the liability arising from the company’s participation in The directors have prepared these financial statements on the defined benefit Local Government Pension Scheme a going concern basis, which assumes that the company administered by North Yorkshire County Council was will continue in operation for the foreseeable future. £2,662,000 at 31 March 2010.
However, attention is drawn to the following circumstances The defined benefit pension scheme deficit is treated as a beyond the directors control that may ultimately cast long-term liability within the balance sheet, as is the norm doubt upon the ability of the company to continue as for this type of liability. This assumes that the company a going concern: will continue to trade, and hence, continue to contribute as required to reduce this deficit over a standard period of time. a) Yorkshire Forward and Future Funding The defined benefit pension scheme has been closed As is illustrated in note 4 to the financial statements, to new members, and the deficit is being addressed Welcome to Yorkshire derives the majority of its income by increased contributions following the last triennial from a number of funding agreements with Yorkshire valuation at 31 March 2007. Forward, the Yorkshire and Humber regional development agency. The triennial valuation of the scheme at 31 March 2010 is currently ongoing. When the valuation is complete Yorkshire Forward are continuing to provide funding to the company will liaise with the pension fund managers Welcome to Yorkshire in the year to 31 March 2011, and – and the actuary as regards any further actions that subject to final agreement of terms and determination of are considered appropriate to address the deficit. quantum – will also provide funding to the company in the year to 31 March 2012. However, the uncertainty regarding the future funding position of the company also creates an uncertainty in However, in mid 2010 it was announced by the Government respect of the ability of the company to meet its current that they intend to abolish the current network of regional anticipated and any future ongoing liabilities to the development agencies, a proposal which is expected to pension fund as they fall due. take effect by 31 March 2012.
It is hence expected that Yorkshire Forward will not be in a position to fund the company for the financial year starting The directors have prepared these financial statements on 1 April 2012. a going concern basis as they consider that, pending the resolution of the uncertainties regarding future funding Although the directors are seeking to obtain funding and the defined benefit pension scheme liability, the from alternative sources to allow the core activities of company is in a position to continue its operations at an the company to continue beyond this date, there are no appropriate scale and meet its contractual obligations as guarantees in this respect, and hence there is currently they fall due. considerable uncertainty as to the outcome of current and any future negotiations with potential funders. The directors will continue to monitor developments in respect of future funding and the defined benefit pension scheme liability and will make arrangements to restructure or vary the activities of the company as appropriate.
It should be noted that if appropriate ongoing funding arrangements are not agreed, and if the company were then unable to continue in operational existence for the foreseeable future then adjustments would have to be made to: reduce the balance sheet values of assets to their recoverable amounts; provide for any further liabilities that may arise; reclassify fixed assets and long-term liabilities as current assets and liabilities as applicable. The valuation and classification of the liability in respect of the defined benefit pension scheme would also need to be considered.
20 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
3. TURNOVER The turnover derives from the company’s commercial activities associated with the promotion of tourism throughout the county of Yorkshire and the North of England as follows:-
2010 £ 2009 £
Marketing 1,008,319 1,701,975
Miscellaneous - 1,893
1,008,319 1,703,868
4. OTHER OPERATING INCOME
2010 £ 2009 £
Membership – 231,804
Local Authorities 285,594 282,473
Yorkshire Forward 9,245,870 6,322,492
Other grant income 71,707 –
9,603,171 6,836,769
5. PARTICULARS OF EMPLOYEES The average number of staff employed by the company during the financial year amounted to:
2010 2009
Welcome to Yorkshire 49 34
England’s North Country 5 5
54 39
2010 £ 2009 £
The aggregate payroll costs of the above were:
Wages and salaries 1,863,857 1,230,294
Social security costs 158,867 89,507
Other pension costs 115,746 339,909
2,138,470 1,659,710
Other pension costs are amounts charged to operating surplus and do not include amounts charged to finance costs (see note 10) and amounts recognised in the statement of recognised gains and losses.
21 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
6. AGENCY TRANSACTIONS Welcome to Yorkshire processed and submitted to Yorkshire Forward grant funding claims in respect of the six Area Tourism Partners in the amount of £2,352,264 for the financial year to 31 March 2010. Of this figure, some £523,597 was received from Yorkshire Forward after the balance sheet date.
As this funding is not considered to be income of Welcome to Yorkshire, and as no amounts are recognised in these financial statements in respect of claims processed on behalf of and amounts subsequently passed onto other Area Tourism Partners, then no offsetting debtor and creditor has been included at the year end.
Welcome to Yorkshire also processed membership income in respect of two Area Tourism Partners in the amount of £65,685 for the financial year to 31 March 2010.
7. OPERATING SURPLUS Operating surplus is stated after charging:
2010 £ 2009 £
Depreciation of owned fixed assets – 483
Depreciation of assets held under finance lease agreements – 3,229
Auditor’s remuneration - as auditor 9,025 7,350 - for other services 2,975 2,035
Operating lease costs: - Plant and equipment 2,735 21,010 - Other 79,485 –
22 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
8. DIRECTORS’ REMUNERATION The directors’ aggregate remuneration, including pension contributions, in respect of qualifying services was:
2010 £ 2009 £
Remuneration receivable 257,231 317,130
Value of company pension contributions to money purchase schemes 30,700 200,796
287,931 517,926
Remuneration of highest paid director:
Total remuneration (excluding pension contributions) 169,581 108,074
Value of company pension contributions to money purchase schemes 30,000 –
199,581 108,074
The basic salary of the highest paid director is £150,000 pa The number of directors who accrued benefits under company pension schemes was as follows:
Money purchase schemes 2 1
Defined benefit schemes - 3
23 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
9. OTHER OPERATING CHARGES
2010 £ 2009 £
Marketing 8,912,818 7,008,055 Miscellaneous 1,517,584 1,250,594
10,430,402 8,258,649 Less: Staff costs (note 5) (2,138,470) (1,659,710)
8,291,932 6,598,939
10. INTEREST PAYABLE AND SIMILAR CHARGES
2010 £ 2009 £
Finance charges – 105 Other similar charges payable 150,000 69,000
150,000 69,105
11. TAXATION ON ORDINARY ACTIVITIES
2010 £ 2009 £
(a) Analysis of charge in the year
Current tax:
UK Corporation tax based on the results for the year at 21% (2009 - 21%) 40 10,797
Total current tax 40 10,797
Corporation tax is chargeable on taxable interest received, as well as on any operating surplus derived from commercial activities.
(b) Factors affecting current tax charge
The tax assessed on the surplus on ordinary activities for the year is lower than the standard rate of corporation tax in the UK of 21% (2009 - 21%).
Surplus on ordinary activities before taxation 31,279 260,584
Surplus on ordinary activities by rate of tax 6,569 54,723
Non taxable trading (6,529) (43,926)
Total current tax (note 11(a)) 40 10,797
24 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
12. TANGIBLE FIXED ASSETS
Freehold Office Land & Buildings £ Equipment £ Total £
COST OR VALUATION At 1 April 2009 and 31 March 2010 800,000 50,488 850,488
DEPRECIATION At 1 April 2009 and 31 March 2010 – 50,488 50,488
NET BOOK VALUE At 31 March 2010 800,000 – 800,000
At 31 March 2009 800,000 – 800,000
The property was revalued by Jones Lang Lasalle on 6 March 2009. The revaluation was based on the property’s existing use value. In the opinion of the directors the value of the property has not changed substantially since that date.
The historic cost of the property is £559,850.
13. INVESTMENTS
Private Companies £
COST At 1 April 2009 and 31 March 2010 50,151
AMOUNTS WRITTEN OFF At 1 April 2009 and 31 March 2010 50,050
NET BOOK VALUE At 31 March 2010 and 31 March 2009 101
Investments in private companies comprise 100% of the issued share capital of the companies listed below, both of which are registered in England and Wales.
2010 £ 2009 £
Aggregate capital and reserves
Yorkshire.com Limited (dormant) 100 100 Yorkshire Tourist Board Limited (dormant) 1 1
Profit and (loss) for the year
Yorkshire.com Limited (dormant) – – Yorkshire Tourist Board Limited (dormant) – –
Under the provisions of s402 of the Companies Act 2006 the company is exempt from preparing consolidated accounts and has not done so; the accounts therefore show information about the company as an individual entity.
25 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
14. STOCKS
2010 £ 2009 £
Goods for resale 16,424 19,067
15. DEBTORS
2010 £ 2009 £
Trade debtors 212,584 90,822 VAT recoverable 12,317 – Other debtors 17,609 3,093 Prepayments and accrued income 1,657,673 2,062,483
1,900,183 2,156,398
16. CREDITORS: Amounts falling due within one year
2010 £ 2009 £
Trade creditors 470,257 1,421,902 Corporation tax 40 10,797 PAYE and social security – 37,263 VAT – 22,620 Other creditors 185,473 17,470 Accruals and deferred income 777,044 681,943
1,432,814 2,191,995
26 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
17. PENSIONS
The company contributes to defined contributions pensions in respect of certain employees. The contributions charged to the income and expenditure account in respect of the year to 31 March 2010 were £35,206; the contributions outstanding at the year end and included in other creditors were £2,939.
The Company participates in the Local Government Pension Scheme, administered by North Yorkshire County Council. The Local Government Pension Scheme is a defined benefit scheme based on final pensionable salary.
The actuarial information indicates that there was a deficit in the defined benefit pension fund at 31 March 2010 of £2,662,000, which is being addressed by increased company contributions. The company has also closed the scheme to new members.
The amounts recognised in the income and expenditure account are as follows:
2010 £ 2009 £
Amounts charged to operating profit: Current service cost 60,000 151,000 Losses on settlements and curtailments 20,000 –
Total operating charge 80,000 151,000
Amounts included in other finance cost: Expected return on scheme assets (167,000) (257,000) Interest on scheme liabilities 317,000 326,000
Other finance cost 150,000 69,000
Total charge to the income and expenditure account 230,000 220,000
Actual return on scheme assets 1,408,000 (1,354,000)
The total operating charge is recognised in the following line items in the income and expenditure account:
Staff costs 80,000 151,000
The other finance cost is included in the income and expenditure account within interest payable and similar charges.
Actuarial losses of £686,000 (2009: £302,000) have been recognised in the statement of total recognised gains and losses. At 31 March 2010 the cumulative amount of actuarial losses recognised in the statement of total recognised gains and losses is £1,325,000.
27 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
17. PENSIONS AND OTHER POST RETIREMENT BENEFITS (continued)
2010 £ 2009 £
The amounts recognised in the balance sheet are as follows:
Present value of funded obligations (6,811,000) (4,385,000) Fair value of scheme assets 4,149,000 2,496,000
Net pension liability (2,662,000) (1,889,000)
Changes in the present value of the defined benefit obligation scheme are as follows:
Opening defined benefit obligation 4,385,000 5,320,000 Current service cost 60,000 147,000 Losses on curtailments 20,000 – Interest on scheme liabilities 317,000 326,000 Actuarial loss/(gain) 1,927,000 (1,309,000) Contributions by scheme participants 52,000 62,000 Benefits paid/transfers 50,000 (161,000)
Closing defined benefit obligation 6,811,000 4,385,000
Changes in the fair value of scheme assets are as follows:
Opening fair value of scheme assets 2,496,000 3,785,000 Expected return on scheme assets 167,000 257,000 Contributions by employer 143,000 168,000 Contributions by scheme participants 52,000 62,000 Actuarial gain/(loss) 1,241,000 (1,611,000) Benefits paid/transfers 50,000 (161,000) Other – (4,000)
Closing fair value of scheme assets 4,149,000 2,496,000
The limited company expects to contribute £126,000 to its defined benefit pension scheme in the year to 31 March 2011; the contribution rate remains 18.2% of pensionable salaries.
The fair values of the major categories of scheme assets are as follows:
Equities 3,162,000 1,867,000 Bonds 900,000 492,000 Cash 87,000 110,000 Other assets – 27,000
Fair value of scheme assets 4,149,000 2,496,000
28 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
17. PENSIONS AND OTHER POST RETIREMENT BENEFITS (continued)
2010 % 2009 %
The principal actuarial assumptions as at the balance sheet date were:
Discount rate 5.70 7.10 Rate of increase in salaries 5.25 5.05 Rate of increase in pensions in payment 3.50 3.30 Inflation 3.50 3.30
2010 £ 2009 £ 2008 £ 2007 £ 2006 £
Amounts for the current and previous four periods are as follows:
Defined benefit obligation (6,811,000) (4,385,000) (5,320,000) (5,013,000) (5,079,000)
Fair value of scheme assets 4,149,000 2,496,000 3,785,000 3,996,000 3,796,000
(Deficit)/surplus in the scheme (2,662,000) (1,889,000) (1,535,000) (1,017,000) (1,283,000)
Experience adjustments on scheme liabilities (£) – – 309,000 – –
Experience adjustments on scheme assets (£) 1,241,000 (1,611,000) (514,000) – –
The experience adjustments are a requirement from 2008.
18. COMMITMENTS UNDER OPERATING LEASES
At 31 March 2010 the company had annual commitments under non-cancellable operating leases as set out below.
2010 £ 2009 £ Land & buildings Other Items Land & buildings Other Items
Operating leases which expire:
Within 1 year – – – 2,735
Within 2 to 5 years – – – 4,282
After more than 5 years 97,438 – – –
97,438 – – 7,017
29 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
19. RELATED PARTY TRANSACTIONS In respect of transactions with Yorkshire Forward the income receivable by the company for the year was £9,245,870 (2009: £6,322,492) and the net balance due to the company at the year end was £1,480,943 (2009: £1,855,229).
Other than transactions with Yorkshire Forward, who are members of the board, it is considered that any transactions entered into by the company with its non-executive directors and entities in which non-executive directors are interested are immaterial. Any such transactions are carried out on an arms length basis and at normal commercial rates.
The directors consider that no one party has control over the company.
20. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The company holds or issues financial instruments in order to achieve three main objectives, being: to finance its operations; to manage any exposure to interest and currency risks arising from its operations and from its sources of finance; and for trading purposes.
In addition, various financial instruments (including trade debtors, trade creditors, accruals and prepayments) arise directly from the company’s operations.
Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below.
Interest rate risk
The company has no outstanding loan, finance or other agreements upon which interest is payable; as such the company considers that is has no significant interest rate risk exposure.
Credit risk
The company monitors credit risk closely and considers that its current policy meets its objectives of managing exposure to credit risk.
The company has no significant concentrations of credit risk. Amounts shown in the balance sheet best represent the maximum credit risk exposure in the event other parties fail to perform their obligations under financial instruments.
Liquidity risk
The company monitors liquidity risks arising from cash flow and cash management on an ongoing basis, through mechanisms including the preparation of budgets and cash flow forecasts.
It may be noted that as at 31 March 2010 none of the company’s cash reserves are held in fixed term deposit accounts or other illiquid assets.
Currency risk
The company does engage in foreign currency transactions, but does not use instruments such as forward or futures contracts. The company considers that its exposure to currency risk is limited in light of the fact that it typically only periodically holds minor trading balances denominated in foreign currencies; there are no long-term investment, cash or financing balances that are denominated in foreign currencies.
30 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
21. COMPANY LIMITED BY GUARANTEE The company, being limited by guarantee, has no share capital. Every member is liable to contribute a sum not exceeding £1 in the event of the company being wound up whilst still a member or within one year thereafter. The members are not entitled to any distribution of the income or property of the company and, in the unlikely event of the winding up or dissolution of the company, any surplus remaining shall be transferred to some other institution having objectives similar to those of the company.
22. REVALUATION RESERVE
2010 £ 2009 £
Balance brought forward 258,069 550,569
Revaluation of fixed assets – (292,500)
Balance carried forward 258,069 258,069
31 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
23. NOTES TO THE CASH FLOW STATEMENT
2010 £ 2009 £
RECONCILIATION OF OPERATING SURPLUS TO NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES
Operating surplus 181,088 278,276 Depreciation – 3,712 Decrease in stocks 2,643 1,623 Decrease/(increase) in debtors 256,215 (1,379,106) (Decrease)/increase in creditors (748,424) 1,316,663 Provision for service cost of defined benefit pension scheme 80,000 151,000 Defined benefit pension scheme contributions paid (143,000) (168,000)
Net cash (outflow)/inflow from operating activities £(371,478) £204,168
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received 191 51,413 Interest element of finance leases – (105)
Net cash inflow from returns on investments and servicing of finance 191 51,308
TAXATION
Taxation (10,797) (13,783)
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Acquisition of fixed asset investments – (1) Disposal of fixed asset investments – 10
Net cash inflow for capital expenditure and financial investment – 9
32 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010
23. NOTES TO THE CASH FLOW STATEMENT (continued)
2010 £ 2009 £
FINANCING
Capital element of finance leases – (3,679)
Net cash outflow from financing – (3,679)
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
(Decrease)/increase in cash in the period (382,084) 238,023 Cash outflow in respect of finance leases – 3,679
Change in Net Funds (382,084) 241,702
Net funds at 1 April 2009 1,200,729 959,027
Net funds at 31 March 2010 £818,645 £1,200,729
ANALYSIS OF CHANGES IN NET FUNDS
At 1 Apr 2009 £ Cash flows £ At 31 Mar 2010 £
Net cash: Cash in hand and at bank 1,200,729 (382,084) 818,645 Debt:
Net funds £1,200,729 £(382,084) £818,645
24. POST BALANCE SHEET EVENTS On 8 April 2010, the company signed a lease agreement to let its former premises at 312 Tadcaster Road, York for a period of six years. The annual rent is £63,000, with the tenant receiving an initial four month rent free period.
33 Welcome to Yorkshire... England’s biggest and most glorious
Welcome to Yorkshire A company limited by guarantee. Registered in England & Wales: No. 2896762 Chief Executive: Gary Verity county Welcome to Yorkshire Dry Sand Foundry Foundry Square Holbeck, Leeds LS11 5DL
T +44 (0)113 322 3500 F +44 (0)113 322 3545 E [email protected] www.yorkshire.com 34