Annual Report and Accounts 2007/8 - Cancer Research UK

Annual Report andAccounts 2007/08Making an impact

Chairman’s StatementThe year ended 31 March 2008 wasanother year of continued progressfor Cancer Research UK.Contents1 Chairman’s Statement2 Chief Executive’s Statement3 Trustees’ Report22 IndependentAuditors’ Report23 Consolidated Statement ofFinancial Activities24 Balance Sheets25 Consolidated Cash Flow Statement26 Notes to the Accounts54 Legal and Administrative Details60 How to find out moreOur total income of £477 million just exceeded the previousyear whilst our funds raised increased by 2% to a record£420 million. Another record was also set by spending£333 million on cancer research during the year.This is anexceptional outcome given that we were faced by the‘credit crunch’ in world financial markets from the secondquarter of our financial year. Encouraged though we areby these numbers, however, we are also realistic that thecurrent year will be very challenging with continuing turmoilin financial markets and pressures on the economy generallyin the United Kingdom and elsewhere.We continue to plan for the future and our strong balancesheet enables us to do so. In addition to working towardsachieving the ten goals we have set ourselves by 2020, it isour aspiration to be recognised as one of the leading cancerresearch organisations worldwide of which this countrycan be proud.New initiativesWith our long-term objectives in view, in the past yearwe have embarked on several new initiatives.We haveoverhauled our governance policies to bring themup-to-date with current best practice.This was the firstcomprehensive governance review since Cancer Research UKwas established over six years ago and it was carried outin consultation with the Charity Commission.We have entered into a partnership with the MedicalResearch Council, the Wellcome Trust and UniversityCollege London to develop a new UK Centre for MedicalResearch and Innovation (UKCMRI) on a site acquired fromthe Government, adjacent to the British Library and StPancras Station in London.We have signed a lease on anew building at the Angel in London into which we willconsolidate the eight office locations we currently haveacross London.This move will result in considerable costsavings and increased efficiency. Our new Cancer ResearchUK-MRC Gray Institute for Radiation Oncology & Biologyin partnership with the University of Oxford and the MedicalResearch Council has started its critically important work.All these initiatives have been undertaken with the objectiveof enabling our researchers to practise science of the highestquality, to be at the forefront of innovation and to achievea high level of success. Our grants are made after the mostrigorous assessment and against a background of backingboth proven winners and the next generation of youngerscientists with new and imaginative ideas.

International impact and influenceIn May 2007 Cancer Research UK scientists at ourCambridge Research Institute (CRI) concluded a majorinternational study by announcing that they had isolated fiveregions of the genome containing genes that can increasea woman’s risk of developing breast cancer. Led by CRIDirector, Professor Sir Bruce Ponder, this ground-breakingstudy brought together 15 research teams from around theworld.Their pioneering work has opened up new researchdirections by showing that it is possible to discover newgenes that can increase the risk of developing differentkinds of cancer by searching the whole genome.Thismilestone collaboration is just one of a series of genomewidestudies which Cancer Research UK is funding into theUK’s most common cancers such as lung, prostate, ovarianand bowel cancer. It reflects the growing impact we haveon raising the standards of cancer research worldwide.While we remain firmly rooted in the UK, we continue toplay an increasingly influential global role by facilitating keyappointments, encouraging the research community toshare information and fostering international partnerships.Meanwhile, our London Research Institute (LRI) had itsbest ever year for publications, with 19 publications ininternational journals achieving an impact factor of 20 ormore. Our plan to relocate the LRI to the UKCMRI is partof our long-term commitment to invest in the Institute’sinvaluable work.Awards of recognitionOn behalf of Council, I would like to congratulate ProfessorSir Alex Markham, our former Chief Executive and currentSenior Medical Advisor, and Professor Sir Bruce Ponder,CRI Director, who were awarded knighthoods in theQueen’s New Year Honours in recognition of their servicesto medicine.Our TrusteesAs announced in last year’s Annual Report, Professor SirDavid Carter and Dr Brendan O’Neill retired at the AnnualGeneral Meeting (AGM) in September 2007. BaronessCumberlege and Dr Carole Rawlinson also retired later inthe year and Professor Dame Nancy Rothwell retiredfollowing her appointment as Deputy President and DeputyVice Chancellor of the University of Manchester.They allremain Members and we thank them most sincerely fortheir commitment and their many contributions as Trustees.Following the AGM, Dr Melanie Lee was appointed DeputyChairman in succession to Sir David Carter and DameBridget Ogilvie was appointed Chair of the Council ResearchStrategy Committee, also in succession to Sir David.During the year, Professor Sir Kenneth Calman and SirJames Crosby were appointed as Trustees.We welcomethem both with their wide experience in different fields.Executive appointmentsLast year’s Annual Report referred to the prospectiveappointments of Professor Sir David Lane as Chief Scientistand Dr Lilian Clark as Executive Director of ScienceOperations and Funding. Both took up these appointmentsduring the year, and Professor Peter Johnson was appointedChief Clinician. All three have joined our Executive Board.Maxine Taylor, former Executive Director of Policy andCommunications, left the Charity for a senior appointmentin the commercial sector and we thank her for hercontribution over the past three years.On behalf of Council, may I again thank all our supporters,volunteers and employees for their energy, commitmentand enthusiasm which enabled us to achieve new recordsin fundraising and research.The financial year 2007/08 waschallenging but successful.Finally, I commend the Trustees’ Report to your attention,which elaborates on this Statement and gives you acomprehensive overview of our activities and achievementsover the past year, and some of our plans for the future.David NewbiggingChairman30 July 2008

2Chief Executive’s StatementCancer Research UK has had atremendously successful year.Our ground-breaking research is leading to new ways toprevent, diagnose and treat cancer, saving lives in the UKand throughout the world.During the year, we initiated a number of new partnershipsto help meet our ambitious goals for 2020. We were alsoinstrumental in securing government commitment to acomprehensive Cancer Reform Strategy that will greatlyenhance prevention efforts and will transform the treatmentand care of cancer patients in the UK.A year into my role as Chief Executive, I am keen toemphasise the positive impact that our work continues tohave on people’s lives and how we plan to achieve ourvision to beat cancer.Our ten goals will continue to shape our work over thenext decade and beyond. Because the goals are long-term,we may not be able to demonstrate significant progressevery year, but whenever it is possible to measure andreport progress, we will.Research to beat cancerSince our merger in 2002, we have doubled our researchspend. Each year we produce a substantial output of worldclassresearch that makes a significant impact on the survivaland quality of life of cancer patients. We have opened anew research institute in Cambridge and, in early 2008, thenew Cancer Research UK-MRC Gray Institute for RadiationOncology & Biology was completed to help us improveand refine radiotherapy treatments for cancer patients.We support research into every form of cancer throughthe work of more than 4,500 scientists, doctors and nursesthroughout the UK.Strategy for successWe are currently finalising a five-year research strategy that wewill publish towards the end of 2008.This strategy will help toclarify our scientific direction, providing a framework fordecision-making and helping us to prioritise where we shouldbe investing our efforts and resources for maximum impact.Cancer informationDuring the year, we drove forward initiatives to help peoplereduce their risk of cancer. We led the UK’s national skincancer prevention campaign – SunSmart – and fundedmobile cancer awareness units to take information andadvice on cancer prevention and early detection to someof the UK’s most deprived communities. Every month,around a million people used our award-winning CancerHelpUK information website. We are working closely with theNHS and Macmillan Cancer Support to launch ‘informationprescriptions’, which will equip cancer patients with theinformation they need during their diagnosis and treatment.Working in partnershipWe worked hard with Government and other partnersand the National Cancer Director on the Cancer ReformStrategy for England. As a result, the Government willsignificantly invest in radiotherapy services, speed up thetime between cancer symptoms and diagnosis, and ensurethat new cancer drugs, wherever possible, are assessed assoon as they are licensed. We are now working with theNHS to deliver the strategy.In December 2007, we announced plans to work with theMedical Research Council, the Wellcome Trust andUniversity College London to build a world-leadingresearch institute: the UK Centre for Medical Research andInnovation (UKCMRI).The Centre will draw together someof the best scientists in the world to make new breakthroughsin understanding how cancer starts and develops.Over the next two years, we are planning to establish anetwork of up to 20 Cancer Research UK Centres.Thesewill be centres of excellence for cancer research in the UKand its application to patient care.They will acceleratedevelopments in cancer research across the country bybringing together the best clinicians and scientists in aparticular locality and by reaching out to local communities.This initiative is one of the most important that the Charitywill undertake over the next five years and has thepotential to transform the landscape of cancer research inthe UK, as well as catalysing significant improvements inpublic health and cancer treatment.The initiative willdepend on us working in partnership with universities,NHS Trusts and cancer networks to help deliver our goals,and to achieve the greatest impact in the global fightagainst cancer.Together we will beat cancerNone of our achievements, past or future, would bepossible without the dedication and commitment of ouremployees, volunteers and supporters. I would like tothank them most sincerely for their efforts, hard work andgenerosity in the last year.Together we will beat cancer.Harpal S KumarChief Executive30 July 2008

3 Cancer Research UK Annual Report and Accounts 2007/08Trustees’ ReportOur vision, purpose and goalsOur purpose and long-term goals help us measure ourprogress and impact towards achieving our vision.Theywill deliver benefit to the UK public and all people whoselives are affected by cancer.Our visionOur purposeWe carry out world-class research to improve ourunderstanding of cancer and find out how to prevent,diagnose and treat different kinds of cancer.We ensure that our findings are used to improve thelives of all cancer patients.We help people to understand cancer, the progress weare making and the choices each person can make.We work in partnership with others to achieve thegreatest impact in the global fight against cancer.Our goalsOur goals were published in May 2007.We will work with our partners to achieve the followingby 2020:People will know how to reduce theirrisk of cancerThree-quarters of the UK public will be aware of themain lifestyle choices they can make to reduce their riskof getting cancer.The number of smokers will falldramaticallyFour million fewer adults will be smokers, preventingthousands of new cases of cancer every year.People under 75 will be less likely toget cancerThe chances of a person developing cancer up to the ageof 75 will fall from more than one in four to one in five.Cancer will be diagnosed earlierTwo-thirds of all cancer cases will be diagnosed at a stagewhen the cancer can be successfully treated.We will understand how cancer startsand developsWe will have a detailed understanding of the causes andchanges in the body in two-thirds of all cases of cancer.There will be better treatments withfewer side effectsTreatments that accurately target the cancer and havefew serious side effects will be available for at least halfof all patients.More people will survive cancerSurvival rates for all common cancers will increase, withmore than two-thirds of newly-diagnosed patients livingfor at least five years.We will especially tackle cancer in lowincome communitiesThe differences in the risk of dying from cancer betweenthe most affluent and the least affluent will be reducedby half.People with cancer will get theinformation they needAt least nine out of ten patients will be able to accessthe information they need at the time of diagnosis andduring treatment.We will continue to fight cancerbeyond 2020Sufficient scientists, doctors, nurses and infrastructurewill be in place to ensure continued rapid progress inthe fight against cancer beyond 2020.

4 Trustees’ ReportOur impactCarrying outworld-class research£333mwas dedicated tofunding researchin 2007/08

5 Cancer Research UK Annual Report and Accounts 2007/08Some of our key objectives andachievements in 2007/081.Undertake tumour site-specific science plan reviewsin hard-to-treat types of cancer• We completed oesophageal and pancreatic cancerreviews, and have already started implementing therecommendations arising from the pancreaticcancer review.• As part of the Centres initiative, we will be setting upcentres of excellence in pancreatic cancer.2. Develop ways to sustain our London ResearchInstitute’s (LRI) position as a world-class institute forbasic cancer research• In December 2007, Prime Minister Gordon Brownpledged his full support to proposals for developing theUK Centre for Medical Research and Innovation(UKCMRI) on a site near St Pancras, London.• Bringing together experts from Cancer Research UK,the Medical Research Council (MRC), the Wellcome Trustand University College London, the UKCMRI will be astate-of-the-art facility delivering world-class biomedicalresearch and will train the next generation ofbiomedical scientists.3. Maintain our reputation as global leaders in geneticepidemiology by funding more single nucleotidepolymorphism (SNP) studies• During the year, a number of major studies werepublished on SNPs. Known as genome-wide associationstudies, they covered lung, brain, breast, prostate andbowel cancers.• We agreed grants for two further studies: a three-yearstudy led by Professor Richard Houlston looking atsusceptibility factors in lung cancer; and a two-year studyto be led by Dr Paul Pharoah into ovarian cancer.4.Launch a Career Establishment Award scheme• We successfully launched the scheme in 2007 andannounced the first winner.• We worked with universities to publicise the newscheme and have seen a three-fold increase inapplications for the second round.Some of our key objectives for the future1. Continue planning for the UKCMRISecuring a site and progressing proposals for the UKCMRIis arguably one of the most significant developments inUK biomedical research for a generation. Under theseproposals, the facility will bring together scientists,chemists, physicists and mathematicians from all over theworld to achieve new insights into complex diseasessuch as cancer, and how they can be treated or prevented.Over the next 12 months and beyond, we will continueto build the foundations that will establish UKCMRIamong the world’s leading biomedical research centres.We carry out world-class research toimprove our understanding of cancerand find out how to prevent, diagnoseand treat different kinds of cancer.2. Implement our Science Management and ResearchTracking (SMART) programme which enables CancerResearch UK to fund the best research and attractthe best researchersThe SMART programme, which was initiated in 2007,is a two-year change programme to improve themanagement of our research portfolio. Streamlinedprocesses and more accessible systems will help us makedecisions faster. Improved portfolio analysis and financialreporting will help us to better understand anddemonstrate the full impact of our research fundingand the progress we are making.Through greaterunderstanding of their needs we can strengthenrelationships with our research community.3. Maintain our global leadership in genome-wideassociation studiesWe will work to remain at the forefront of genomewideassociation studies by funding further research ofthis kind into the top ten cancers while contributing tomajor publications. We have funded 17 out of 23 majorpublications of cancer predisposition loci across theworld since June 2006.4. Complete the establishment of our Cancer ResearchUK-MRC Gray Institute for Radiation Oncology& BiologyAmong other priorities, this will involve completing thetransfer of all groups to the new building by the end ofthis year. With our partners – the MRC and theUniversity of Oxford – we will officially open the newInstitute later this year.

6 Trustees’ ReportOur impactImproving thelives of all peoplewith cancer33,600people joined ourclinical trials in 2007

7 Cancer Research UK Annual Report and Accounts 2007/08Some of our key objectives andachievements in 2007/081. Roll out Cancer Research UK Centres across the UKand launch Project Local to strengthen local research,information and fundraising activities• By October 2008, we will have completed discussions in20 locations across the UK, with a view to establishingCancer Research UK Centres.• The process of developing these Centres has alreadybrought about a number of important collaborations thatotherwise would not have happened.• Following the successful pilot of Project Local, we aredeveloping a core initiative called LEAD (LocalEngagement and Development). LEAD will enable morecommunication between scientists and local communitiesand will support the Centres in engaging the public inour work.2. Invest in further drug development activities byestablishing new drug discovery groups, building a newBiotherapeutics Development Unit (BDU), andexpanding the Cancer Research Technology Limited(CRT) development laboratories• We committed £10 million into establishing drugdiscovery programmes at the University of Oxford, theUniversity of Strathclyde, the School of Pharmacy inLondon and Imperial College, London.• Construction of the new BDU building at Clare Hall inHertfordshire is on schedule for completion by the endof 2008. It should be licensed for operation by 2010.• We expanded the CRT development laboratories inLondon, and established units in Cambridge and Glasgow.3. Contribute to the development of the Cancer ReformStrategy in England and support Scotland,Wales andNorthern Ireland in making similar plans• The Cancer Reform Strategy (CRS) for England waslaunched in December 2007. Cancer Research UKprovided significant input to the strategy, and the finalversion includes most of our major recommendations.• Going forward, we will establish our role in helping todeliver the CRS, particularly our involvement in majorinitiatives covering symptom awareness, early detectionand inequalities.• In February 2008, the Scottish Government published‘Better Cancer Care: A Discussion’, seeking views on acancer strategy for Scotland.We are working with ourclinical researchers in Scotland on a response.• We remain in regular contact with the Welsh Assembly.We will support the development of a cancer strategyduring 2008.• The Northern Ireland Assembly has been working todevelop regional frameworks for cancer care, and wehave responded to their consultations.4. Launch new public campaigns to support our lobbyingwork on cancer screening programmes• We launched the Screening Matters campaign. So far,over 110,000 people have signed our petition and almost20,000 have emailed politicians.We ensure that our findingsare used to improve the lives ofall cancer patients.• Since the campaign launch, the Government hasannounced a series of measures to expand existingscreening programmes for breast and bowel cancer inEngland. Primary Care Trusts (PCTs) around thecountry are focused on how they can improve uptakeof screening amongst their populations.Some of our key objectives for the future1. Launch Cancer Research UK CentresTo ensure our findings are used to improve the lives ofall cancer patients, we hope to launch five centres ofresearch excellence over the coming year to translate ourworld-class basic research into improved patient care.Wewill also make substantial progress towards establishing afurther 10 to 15 Centres.2. Support the development of a new chemotherapeuticscentre between the Paterson Institute for CancerResearch and the Christie Hospital in ManchesterWe will support this Manchester Cancer Research Centre(MCRC) initiative with £4.2 million to help triple the sizeof the early phase Clinical Trials Unit at the ChristieHospital, making it one of the world’s largest dedicatedcancer trials units of its kind.3. Drive major improvements in the early detectionof cancerHarpal Kumar will co-chair a major new national initiativein awareness and early detection, with Professor MikeRichards, the National Cancer Director.The NationalAwareness and Early Detection Initiative will develop andimplement recommendations through workstreamsranging from symptom awareness to understandingwhere the UK should invest in further technology.4. Fund 11 research nurses in Wales in partnership withthe Wales Office for Research and DevelopmentWe aim to jointly fund 11 research nurses in positionsthroughout Wales, in partnership with the Wales Officefor Research and Development, in order to greatlyenhance accrual to clinical trials in Welsh hospitals.

8 Trustees’ ReportOur impactHelping people tounderstand cancer1millionvisits per month forour CancerHelp UKwebsite

9 Cancer Research UK Annual Report and Accounts 2007/08Some of our key objectives andachievements in 2007/081. Expand the mobile cancer awareness unit pilot schemeto spread prevention messages to more people indeprived communities• After a successful pilot scheme, we launched two mobilecancer awareness units. Both attracted a higher numberof visitors than the pilot.• During the year, the units visited 85 town centres in theNorth East, Scotland, the Midlands and Wales, attracting27,000 people. Of those surveyed, 85% said they plannedto make changes to their lifestyle as a result of their visit.• Our evaluation shows that each visitor shares informationwith an average of five other people. On this basis, theawareness units would have reached 162,000 people indeprived communities over the past year.2. Build on our partnership with Cancerbackup toimprove patient information resources and access totailored information for people living with cancer• We expanded the partnership to include MacmillanCancer Support and the NHS.Together, we havedeveloped and agreed the scope of this project, whichaligns directly with the CRS.• Working in collaboration has proved a highly effectiveway of maximising the strengths of each organisation inthe partnership.To ensure that people affected by cancerget the information they need, when they need it, we willcontinue to look for further opportunities to work withMacmillan Cancer Support, recently merged withCancerbackup.3. Develop Project Local to help people engage withand understand the research we are funding in theirlocal areas• Following the successful pilot of Project Local, CancerResearch UK is now developing a core initiative calledLEAD (Local Engagement and Development).This willhelp people to understand more about our work,introducing people to the researchers we fund in theirareas and the difference we make to local people livingwith cancer.4. Make all our patient information resources availablefree of charge• We fulfilled this objective in April 2007. Since then, all ourhealth information and cancer awareness publicationshave been available free of charge through our online andtelephone ordering systems. Since April 2008, all of ourcancer statistics reports have also been accessible forfree online.We help people tounderstand cancer, theprogress we are makingand the choices eachperson can make.Some of our key objectives for the future1. Launch information prescriptionsWe are working towards this objective through thepartnership with the NHS and Macmillan CancerSupport. At present, almost two-thirds of cancer patientsdo not fully understand what their diagnosis means.Information prescriptions will help to reduce the fearand uncertainty this creates by equipping cancer patientswith a better understanding of their diagnosis andtreatment options.2. Launch an online patient forum and redevelopCancerHelp UK’s online presenceWe have announced plans to launch Cancer Chat, anonline forum where people affected by cancer can supporteach other by sharing information and experiences.Meanwhile, we will soon complete the redesign of ourCancerHelp UK website (www.cancerhelp.org.uk), whichprovides free information to people with cancer and theirfamilies.The site continues to exceed its targets. SinceOctober 2007 the site has regularly attracted one millionunique visits per month – an increase of 50% over12 months.3. Expand the number of mobile cancer awareness unitsThe Cancer Awareness Roadshow has been so successfulat reaching people in deprived communities that we areplanning to expand the project by adding a third, moreadaptable unit.The three units will visit areas in London,Northern Ireland, the North West and the south coastof England.

10 Trustees’ ReportOur impactWorking inpartnership110,000people have signedour Screening Matterspetition

11 Cancer Research UK Annual Report and Accounts 2007/08Some of our key objectives andachievements in 2007/081. Continue to lobby for the best possible environmentfor cancer research in the UK• We kept the need for Government to continue itssupport for charity research funding in universities highon the political agenda.• By making representations to key MPs and relevantministers, we secured a commitment from Governmentthat it will meet its target of providing £270 million incharity-funded research in universities by 2010/11.• To ensure this funding continues long-term, we arebuilding lobbying partnerships for the future.2. Engage with the new national research governancebodies established following Sir David Cooksey’s reviewof health research funding in the UK• We continued to define our role and relationship withthe newly-formed Office of Strategic Co-ordination ofHealth Research (OSCHR) and its Translational ResearchFunding Board.• We hold regular meetings with Professor Sir John Belland Liam O’Toole, Chair and Chief Executive of theOSCHR respectively. Professor Sir Alex Markham, ourSenior Medical Advisor, is Chair of its TranslationalResearch Funding Board.3. Provide strategic input into national research fundingcoalitions such as the National Institute for HealthResearch (NIHR) and the UK Clinical ResearchCollaboration (UKCRC)• NIHR Harpal Kumar and our Clinical Trials Directormeet regularly with the NIHR research and developmentteam to address issues affecting clinical cancer researchin the UK.• UKCRC Harpal Kumar is a member of the UKCRCBoard. Our Clinical Trials Director also plays a key rolein supporting the organisation’s work.• NCRI We continue to provide input and guidance atBoard level to the National Cancer Research Institute(NCRI). We once again organised the NCRI’s highlysuccessful annual conference. In addition, Professor SirKenneth Calman, one of our Trustees, was appointedChairman of the NCRI to succeed Professor Mike Richards.4.Work to help develop the UKCRC’s new publichealth initiative• We worked with the UKCRC and the Economic andSocial Research Council (ESRC) to build capacity in publichealth research by developing and reviewing proposalsthat led to the establishment of five centres of excellencein public health.• We will contribute funding to four of the centres –those led by researchers at Cardiff University, Universityof Nottingham, Queen’s University Belfast, and Universityof Newcastle.We work in partnership withothers to achieve the greatestimpact in the global fightagainst cancer.Some of our key objectives for the future1. Push for further action on smokingIn partnership with ASH (Action on Smoking and Health)and the British Heart Foundation, and with input fromkey researchers, we will publish a major report on theoutcomes of the 1998 White Paper ‘Smoking Kills’,outlining the priorities for a five-year national tobaccocontrol plan.The CRS includes commitments to a raft ofnew tobacco strategies and we continue to push for acomprehensive plan and further marketing restrictions.The Governments of England and Scotland have alreadyannounced consultations on a range of new measures.2. Develop work on our highest level public policy prioritiesThrough our Policy and Public Affairs Team, we willcontinue to influence Government policy on our fivetop policy issues: tobacco control, obesity, access totreatment, cancer strategies and Government investmentin research infrastructure.3.Work with the Engineering and Physical SciencesResearch Council (EPSRC) to increase capacity infunctional and whole-body imaging developmentWe have established a partnership with the EPSRC toincrease capacity in functional and whole-body imaging.Together, we will establish new centres of excellence incancer imaging research.4. Play a key role in the National Cancer IntelligenceNetwork (NCIN)In line with the commitments in the CRS, the NCIN willco-ordinate the collection, analysis and interpretation ofcancer data to provide high quality cancer intelligence.This intelligence will be used to improve cancer servicesand increase patient choice. It will also provide a valuablenew resource for epidemiological and health servicesresearch. We will help to ensure that the NCIN achievesits ambition: to create the best cancer information systemin the world by 2012. Harpal Kumar sits on the SteeringGroup for the NCIN.

12 Trustees’ ReportFinancial highlightsIncomeOur total income grew by £9 million to £477 million.Fundraising income rose by 2% to £420 million, as detailedin Notes 2a and 2b to the accounts. Excluding NationalEvents, voluntary income grew by 5%, driven by a £10 millionincrease in legacy income to £148 million. National Eventsincome was down £5 million, as 665,000 women took partin Race for Life, compared with a record-breaking 740,000in 2006/07.We were not helped by the cancellation of29 races due to flooding. Donor marketing rose 4% to£94 million. Community fundraising decreased by £3 millionin a year of transition from staff-led to volunteer-ledfundraising. Income from trading remained flat at £78 million,as like-for-like growth of 4% in the sale of donated goodswas offset by shop closures in the core retail chain.Costs of generating fundsOur costs of generating funds increased by 2% to£130 million.The percentage of funds raised that areavailable to beat cancer was 81% excluding retail, which ona like-for-like basis is comparable with 2006/07.These costsinclude the first £2.5 million of investment in our‘Supporter Relationship Management’ (SRM) programme,which will ultimately transform our supporter managementstrategy, processes, technology and relationships.This majorprogramme is vital to support growth and improvedefficiency in fundraising in order to meet our financial targets,and will continue to be developed over the next three years.Costs of charitable activitiesThe costs of our charitable activities have grown by 6% to£344 million, excluding the 2006/07 exceptional item.Most of this is made up of research activities – up 6% to£333 million. Our information and advocacy work hascontinued to grow in scope and importance, increasing by10% to £11 million.In 2006/07 we reported an exceptional item as a resultof changes in the way some of our research grants areadministered (see also ‘Grant funding of research’ onpages 14 and 15).This had the effect of creating a significanttiming difference between accounting for many grant costsand actually paying those grants, making the annual patternof reported research costs more volatile, and different fromeither research payments made or cost of work actuallydone. Our cash outflows (i.e. payments) for charitableactivities were significantly higher at £368 million (2006/07£291m).The cost of work actually done in the year was£341 million (2006/07 £306m): this figure is furtheritemised under ‘Research costs analysed’ on page 14.During the year we completed the transfer of certainresearch activities to various universities. As a result, wetransferred 92 employees, made £1.6 million of pensiontop-up payments, and expensed as grants assets with abook value of £1.95 million (of which £1.2m was expensedin 2006/07). We continue to grant fund these activities.£millions£millions468 477468 477384423384423339339116112126 127 13003/04 04/05 05/06 06/07 07/08Total income03/04 04/05 05/06 06/07 07/08Costs of generating fundsCosts of generating fundsTotal income

13 Cancer Research UK Annual Report and Accounts 2007/08Net movement in fundsNet income was £10 million. However, after accounting for£40 million of unrealised losses (£35m on our investmentsand £5m actuarial losses on the pension fund), the netdeficit for the year was £30 million. Our investment andpension fund assets are held for the long term, so weexpect that these unrealised losses will be recovered.ReservesOur accounting treatment for grants means that weeffectively fund a large proportion of grant obligations wewill pay out in future years from income we have generatedin the current year.This is why we have very small freereserves of £8 million at 31 March 2008 even though wehold significant cash and investments (£280m at 31 March2008). In effect, the cash and investments are earmarked tocover the £250 million of grants that we have awarded butnot yet paid. Our reserves policy allows us to manage thisdelicate balance: this is explained in more detail under‘Reserves policy’ (page 18).The graph below relates our freereserves to our cash and investments, and our grant liabilities.With our cash and investments already earmarked, eachyear we must start again from scratch to raise the fundsthat are essential to continue our work. In order to deliverthe ambitions for our research portfolio in the comingyears, and to ensure our goals for 2020 are achieved, it isclear that we will need to increase our fundraising effortsyet further. Research studies take many years to bear fruit.So we must be committed to support research in the longterm, to yield the greatest possible impact for peopleaffected by cancer.The level of our grant commitmentsand liabilities (£546m at 31 March 2008) reflects this.Fixed assets and investmentsThe £34 million additions to our fixed assets include£16 million of investment into two new research buildingsat our Clare Hall site.The first is a new research facilitywhich will be completed in 2008/09.The second is a newBiotherapeutics Development Unit, which should belicensed for operation by 2010.During the year, we announced that our partnership withthe MRC, University College London and the WellcomeTrust had successfully won a bid to buy a site in centralLondon to develop the UKCMRI. At 31 March 2008, thepartners had exchanged contracts with the site owner(the Department for Culture, Media and Sport) and wehad paid our £1.8 million share of the deposit, which isincluded in debtors.The £16.1 million balance of our shareof the purchase price was held on trust by the WellcomeTrust pending completion of the site purchase in June 2008,and is included in ‘cash and short term deposits’.Thebuilding project will now take several years to complete.During 2008/09, the partners will undertake extensivepreparatory work including scientific planning, creating alegal vehicle for the partnership, and selection of architects,contractors and engineers to design the centre.Work toquantify the scope and cost of the UKCMRI will also beundertaken. It is expected that associated future costs willbe carried in the balance sheet as an investment in thespecial purpose vehicle to be set up by the partners.£millions£millions50099400213 21725732534430020010003/04 04/05 05/06 06/07 07/08Charitable activities – costs and payments003/04 04/05 05/06 06/07 07/08Free reserves, cash and investmentsand grant liabilitiesCosts (accounting)Exceptional cost (accounting)Payments (cashflows)Cash and investmentsGrant liabilitiesFree reserves

14 Trustees’ ReportResearch costs analysedResearch costs analysed by cancer typeSome 40% of our research is basic research, which is nottumour specific.The remaining 60% can be analysed byspecific cancer type. For clarity only the top 20 aregiven below.Cancer type 2007/08 2006/07£000 £000Breast 44,395 46,101Colon and rectal 30,184 23,473Ovarian 14,713 12,075Prostate 14,431 10,446Leukaemia 13,497 8,453Lung 13,202 13,521Non-Hodgkins Lymphoma 8,464 5,862Melanoma 7,320 4,944Pancreatic 6,816 4,354Bladder 6,515 5,140Skin 4,950 7,360Brain 4,670 3,372Oesophageal 4,390 4,563Cervical 3,564 4,370Kidney 3,408 3,239Sarcoma 2,739 2,571Pharyngeal 2,511 3,362Neuroblastoma 1,851 1,812Oral cavity and lip 1,498 1,592Laryngeal 1,153 2,183Other 17,897 11,754Total site specific research 1 208,168 180,547Total basic research 133,151 125,760Total cost of researchwork done in the year 2 341,319 306,307Grant funding of researchOur research is carried out in many institutes, universitiesand hospitals across the UK, both by our employees and byour grant-funded researchers – in many cases workingclosely together. Long-term investment is required for newideas to produce significant output. Many of ourprogramme grants are awarded for up to five years.Thesegrants may be renewed to support the next stage in theresearch process. Clinical trials often take ten years ormore. In all areas we carry out the same rigorous processof evaluating, reviewing and ensuring the highest standardof research, and this is a critical control in allocating funds.Committees of international experts in each research fieldreview funding applications, including continuation ofexpiring awards, and monitor the research programmes.It is important to understand the way we account forgrants and the impact this has on the costs of charitableactivities we report. We provide for the grants that weexpect to pay up until their next scientific milestone review.During 2006/07 we made changes to the way in whichcertain grants are administered. Having identified thoseaward types where it is beneficial to assess progress atlonger intervals than annually, we set scientific milestonereviews at an interval determined by project type.This analysis uses the cost of work done as the measurementbasis. As explained under ‘Costs of charitable activities’ onpage 12, and ‘Grant funding of research’ on this and thefollowing page, this differs slightly from research costs in theStatement of Financial Activities because of the accountingtreatment of grants.The cost of work done basis ispreferred here as it gives a fairer reflection of the actualresearch activity in the year, as opposed to funding awarded.1. Site specific research includes an apportionment of research that is relevant to all sites. Whereverpossible research is assigned to a specific cancer type; however, some research is neither basic norcan it be tied to an individual cancer, e.g. a project on pain control relevant to all cancer patients.2.The figures include apportionment of uncoded work (totalling £40m in 2007/08), which cannotbe tied specifically to one piece of research but underpins all areas of research.

15 Cancer Research UK Annual Report and Accounts 2007/08Although the accounting policy was unchanged, the processled to accounting for more of these grants earlier thanwhen we actually pay them. For example, many of ourfive-year programme grants are now recognised in twotranches of three years and two years, rather than fiveannual tranches.The impact of the changes was to create aone-off exceptional accounting charge of £99 million in2006/07, which increased our grant liabilities and reducedour reserves.As we explained last year, the increased gap between thedates we provide for many grants and the dates we actuallypay them can affect the picture of costs painted by ouraccounts over time.Where grants are recognised lessfrequently and in larger tranches, the pattern of researchcosts reported year-on-year can be more volatile than theunderlying trend of grant funded research activity.This iswhy we have provided information on a ‘cost of work done’basis under ‘Research costs analysed’ on page 14.Subsidiaries and related partiesActivities in furtherance of our objectivesThe principal activity of Cancer Research Technology Ltd(CRT) – a wholly-owned subsidiary – is to hold, developand exploit intellectual property rights arising from researchfunded by Cancer Research UK and others to ensure thatany discoveries that could lead to new drugs, diagnostics orvaccines reach the clinic by the most effective developmentroute.These activities help us ensure our findings are usedto improve the lives of cancer patients. CRT had anotherrewarding year, with revenues of £29 million (excludingCancer Research UK grants to support the CRTdevelopment laboratories) and a profit on ordinary activitiesof £2 million. All CRT’s taxable profits are returned toCancer Research UK as a Gift Aid payment.In addition, CRT enjoyed a number of strategic successes:• Continued growth of the CRT laboratories, with theacquisition of additional space in London, and a newlaboratory close to the Cambridge Research Institute.• Formation of Cancer Therapeutics CRC Pty Ltd inMelbourne, Australia, which is now fully operational withsix projects underway, including a collaboration withCRT on LIM kinase, and CRT as the consortium’scommercialisation partner.• A strong portfolio of drug discovery projects establishedin the CRT laboratories which should progress intolicensable packages in 2008/09 and beyond.£44.4mwas spent on breastcancer research this yearCRT and its US subsidiary, CRT Inc, continue to befinancially well placed to fulfil their aim of maximising cancerpatient benefit flowing from publicly-funded research.As explained in Note 16 to the accounts, the Beatson Institutefor Cancer Research is treated as a subsidiary undertakingfor accounting purposes from 14 June 2007, which is thedate when representatives of Cancer Research UK becamea majority of its board.The Institute has continued topursue research into the causes and mechanisms of cancer,using the techniques of genetic and cell and molecularbiology, again leading to numerous scientific publications.It is investing in a major expansion of research facilities,involving the construction of a new cancer research centre,which was completed in December 2007, and therenovation of existing laboratories.The Institute was ableto resource the development of a further clinically-ledresearch group and to recruit three further basic researchgroups during the year.The Institute generated a total of£14 million in incoming resources (£11.6m fromCancer Research UK), and spent a total of £10 million onits research activities. In accordance with accountingstandards an amount equal to the value of the assets andliabilities at the date of acquisition has been recognised onthe balance sheet as negative goodwill and is beingamortised to the SOFA over a period of ten years.The Gibb Research Fellowship Endowment Fund successfullysupports two active research fellows.War on Cancer isreviewing its activities with a view to redeploying its fundsin cancer research.

16 Trustees’ ReportCancer Research UK, together with the MRC andDepartment of Health (England), continues to supportonCore UK – an associate undertaking – in recognition ofthe need to strengthen and improve translational research.Under its expanded remit, onCore UK, as a nationalresource, continues to work towards the facilitation oftranslational biomarker research through the provision ofquality assured, clinically annotated patient samples. onCoreUK is chaired by Professor Colin Bird, one of our Trustees.Activities to generate incomeCancer Research UK Trading Ltd – a wholly-ownedsubsidiary – generates income through trading activitywithin the fundraising portfolio.The sale of bought-in goodsand cards in the retail chain generated income in excess of£7.5 million, of which some 60% was delivered during theChristmas trading period.The core retail chain is the mostprofitable charity retailer on the High Street (source:Charity Shop Survey 2007 – highest profit per shop for‘non-hospices with 100+ shops’), and the number onecharity Christmas card retailer in the UK.The core chaincomprises 562 shops. Following the year end we decidedto convert our Wishes chain of card shops to coredonated goods outlets.Trading income is also generatedthrough entrance fees and merchandise sales associatedwith our Race for Life and 10K events programmes.46,600volunteers donatedtheir time, energyand skills this yearOther activities include the sale of cause-relatedmerchandise through our corporate partnerships such asBurton and Peacocks. All taxable profits are returned toCancer Research UK as a Gift Aid payment.Total revenuewas £24 million in the year, and profit on ordinary activitieswas £2 million.The Imperial Cancer Research Fund and the CancerResearch Campaign continue to collect legacy income onbehalf of Cancer Research UK.VolunteersOur volunteers make a vital contribution towards all ourachievements. Some 46,600 volunteers regularly support usby working in our shops and offices, at events and byfundraising in their communities.Their presence is wideranging, with 16,500 volunteers in our retail chain, 16,000 inour Race for Life and 10k series, 13,500 in CommunityFundraising and 600 in our offices, through placements andinternships.Together our volunteers contribute an estimated6.9 million hours each year.This year, we recruited 3,132 new volunteers for our retailchain. For the third year running our internship scheme hasbeen recognised for its quality of work experience by theNational Council for Work Experience. Over 100 internscompleted placements in departments across fivedirectorates. We celebrated and recognised 78 exceptionalvolunteers at our annual Flame of Hope Awards in 2007,which was hosted by our Chairman.This event provides agreat showcase for the enthusiastic, innovative and oftenbrave contributions that our volunteers make.

17 Cancer Research UK Annual Report and Accounts 2007/08EmployeesInnovation and discovery are at the heart of our organisation.Whether this is in our science, fundraising or supportactivities, we aim to create an environment that will fosternew ways of thinking and continuous improvement.Our wide network of employees, grantees and supporterswork enthusiastically to pursue our vision, purpose andgoals.The competition for talented people remains fierceand we are continually developing our approaches toattract and retain the best talent, often competing with theprivate and public sectors. Our focus during the year hasbeen on communicating our vision, purpose and impact toour people and strengthening our performance managementand reward systems.We have introduced new opportunitiesfor management development as well as improvedprogrammes for training and skill development.We ensure that every person is given equal opportunitiesby our policies and practices. Cancer Research UK does nottolerate sexual, racial, physical or mental harassment of staffin the workplace and aims to ensure that all employeesreceive equal treatment regardless of their age, race, sexor disability.The triennial actuarial valuations of the two defined benefitplans took place as at 31 March 2006 using assumptionsagreed between Cancer Research UK and the pensionfund trustees. On an ongoing funding basis, the combineddeficits as at 31 March 2006 were £12.1 million (£56.1min 2003) and the plans were almost 96% funded.Wecontinue to monitor the situation regularly with the pensionfund trustees.We also continue to monitor pension planchanges in the universities sector and the NHS – keyreference points for attracting high calibre candidates toCancer Research UK.Full details of our pension schemes are included in Note 31to the accounts.Management of riskThe Trustees are responsible for Cancer Research UK’s riskmanagement and the effectiveness of internal controls.Council performed its annual review of major risks and ofthe work carried out by the Audit Committee, to ensurethat we have taken reasonable measures and maintainedsystems to reduce these risks to an acceptable level.PensionsWe offer a combination of defined contribution anddefined benefit plans to our employees. Employees may jointhe defined contribution plan – a stakeholder plan knownas ‘Your Pension’ – at any time. After two years’ servicethere is a single opportunity to join the defined benefitplan (except for employees of CRT).The two defined benefit plans – the Cancer Research UKPension Scheme and the Cancer Research CampaignPension Plan – were merged during the year, significantlyreducing future governance and administration costs. At31 March 2008, the combined deficit of the schemes was£4.5 million (£7.9m in 2007) on an FRS17 basis. A significantfactor in the reduction was the additional contributionspaid in the year. Unrealised losses on scheme assets due tothe turmoil in financial markets were offset by otheractuarial gains on scheme liabilities, themselves heavilyinfluenced by rising interest rates in the aftermath of thecredit crunch. For this reason it is particularly difficult tovalue scheme liabilities in the current economic context. Avariation of 0.1% in the discount rate applied would changethe deficit by around £7 million. We have made a furtherprudent allowance for probable increases in life expectancyin line with recent actuarial experience and guidance.

18 Trustees’ ReportThe Audit Committee provides Council with an informedand independent assessment of the management andcontrol of risks throughout the year.• It reviews the register of major risks faced by CancerResearch UK, and has monitored the considerableprogress which has been made on business continuityplanning. A remote back-up location is now in place tosupport our critical computer applications.• It reviews the work carried out by the Internal Auditfunction in line with its annual risk-based plan. Progressin all these areas and follow-up actions are reviewedregularly and reported to Council.• It also monitors the work of the external auditors.Financial risk managementPrices of goods and services purchased are subject tocontracts with suppliers based on market prices, and salarycosts are subject to a formal annual review. Our standardpayment terms are 45 days. Credit risk on amounts owedby customers is low. Cancer Research UK has noborrowings and our policies regarding the management ofinvestments and reserves are set out below. Net US dollarexchange rate risk in our trading subsidiaries is managed bythe use of derivatives where appropriate.Target 31 March 31 March2008 2007Cash and investmentscover (months) 6.0 6.7 8.9Adjusted reservescover (months) 2.5 2.6 3.9Free reserves(£ millions) Positive 8 47Reserves policyThe primary purpose of our reserves policy is to ensurethat Cancer Research UK holds adequate funds to maintainthe long-term sustainability of our research and to manageshort-term volatility in income or liquidity.The policy isdesigned to ensure that Cancer Research UK can:• continue to meet its financial commitments;• deploy funds promptly, in a planned way and react tonew opportunities;• balance sound investment with good liquidity management;• ensure that we are not forced into short-term decisionsto the detriment of our long-term vision.To achieve this we have adopted target measures for keyreserves indicators. Our reserves policy aims to:• hold a minimum of 6 months of total cash outflowrequirements in cash and investments, and• hold a minimum of 2½ months of total costs in ‘adjusted’free reserves (free reserves plus long-term grantliabilities), and• maintain positive free reserves.The above table summarises our compliance with the policy.We do not invest intobacco companies orrelated businessesPlanned growth in our research costs is bringing thereserves measures back towards the target levels.As part of our monthly reporting process, we regularlymonitor the adequacy of our reserves. Each year, weupdate our long-term financial plans and review ourreserves policy. We have made no changes to the reservespolicy this year.

19 Cancer Research UK Annual Report and Accounts 2007/08Investment losses were £26 million in 2007/08 (gains of£8m in 2006/07 and £22m in 2005/06).Trading conditionswere particularly difficult in equity markets, largely as aresult of the impact of the US sub-prime mortgageproblem and the resultant global credit crunch.This in turnaffected growth prospects in both the US and UK, wheredomestic property prices have also started to fall fromovervalued levels. Further threats include inflationarypressure from rising commodity prices, principally oil.Investment policy and performanceOur investment strategy aims for a portfolio of investmentsthat benefits from capital growth in the long term, as wellas giving stability through diversification.This year we havereduced investments by £42 million.This reverses thetrend of recent years, in order to meet our ambitiousspending targets.Our portfolio is invested in equities to provide long-termcapital growth fixed income to provide income, liquidity andstable capital values; and property which provides incomeand a long-term capital growth opportunity.Together theyprovide a diversified portfolio. We also maintain cashholdings for working capital purposes. We have made noinvestment in any sub-prime or similar instruments.Our Finance Committee has responsibility for settinginvestment policy and deciding on investment strategy.Both policy and strategy were reviewed in the course ofFinance Committee business during the year. As a result ofthis regular review, we changed our global equity managerduring the year. AllianceBernstein took over management ofour overseas equity portfolio in early December.TheFinance Committee also kept the performance of RREEF,manager of the property portfolio, under review throughoutthe year.This is against a background of managerunderperformance in the retail property sector, and lately,the difficult market conditions in the commercial propertysector as a whole, which resulted in falling capital values.With both equity and property markets returning lossesand bond markets posting only modest gains, all assetsclasses have fallen short of target in 2007/08.The UK stockmarket fell by 10% and the global index, MSCI, fell by 8.4%.The property market index fell by 10.7% in the year.Thisfollowed three strong years of above trend returns, and theannualised return over the last five years remains at 10.7%.Partially offsetting losses elsewhere were modest gains inthe fixed income benchmark of 2.9%.The overallinvestment losses are made up of £9 million realisedinvestment gains and £35 million unrealised losses. Weremain confident of the potential of our investments todeliver expected returns in the long-term.Smoking causes around a third of all cancer deaths in theUK, so it is our policy not to invest in tobacco companiesor related businesses.Structure, governance and managementWhen Cancer Research UK was formed some 6½ yearsago, governance policies and practices were introducedwhich have remained largely unchanged. However,Cancer Research UK itself has grown in size and scope,the regulatory environment has changed, and the challengesfaced by Trustees and management have intensified.Accordingly, in the second half of 2007 a comprehensivereview of our governance was carried out in consultationwith the Charity Commission, leading to the adoption byCouncil of a number of recommendations.These will resultin Cancer Research UK being fully compliant with the Codefor the Voluntary and Community Sector.

20 Trustees’ ReportThe main features from the review are:• Our Council consists of the Trustees of CancerResearch UK, who are also Members and Directors ofthe charitable company.The number of Trustees will bereduced from 20 to 12 during 2008/09.• Trustees are elected by Members at their AGM for aninitial term of three years, renewable for up to twofurther terms.• The role of the Trustee and the role of the Chairmanhave been reviewed and updated.• The number of Council meetings will be increased fromfour to six each year.• The committees of Council have been reviewed and insome cases restructured.They now comprise AuditCommittee, Chairman’s Committee, Council ResearchStrategy Committee, Finance Committee, Nominationand Governance Committee, Remuneration Committee.The schedule of matters reserved to Council has beenrevised, and each Council committee has a clearstatement of its principal duties and powers.• The process for nominating new Trustees is overseen bythe recently formed Nomination and GovernanceCommittee who are assisted by independent searchconsultants and open advertising.The Committee willmeet at least twice a year.• The induction programme for new Trustees is tailoredto the individual’s skills and experience, and includessite visits and meetings with management.• Each Trustee will be formally appraised once in eachthree year term, and has regular access to theChairman and Chief Executive Officer.Trustees’ responsibilitiesThe Trustees are responsible for preparing the Trustees’Report and the financial statements in accordance withapplicable law and United Kingdom Accounting Standards(United Kingdom Generally Accepted Accounting Practice).Company law requires the Trustees to prepare financialstatements for each financial year, which give a true and fairview of the state of affairs of Cancer Research UK and theGroup, as well as the income and application of resources,including the income and expenditure, of the Group forthat period. In preparing these financial statements, theTrustees are required to:• select suitable accounting policies and then applythem consistently;• make judgements and estimates that are reasonableand prudent;• state whether applicable accounting standards have beenfollowed, subject to any material departures disclosedand explained in the financial statements;• prepare the financial statements on the going concernbasis unless it is inappropriate to presume thatCancer Research UK will continue in business.The Trustees continue to deploy a wide range of skills andexperience essential to good governance, as outlined onpages 55 to 58.

21 Cancer Research UK Annual Report and Accounts 2007/08The Trustees are responsible for keeping proper accountingrecords that disclose with reasonable accuracy the financialposition of Cancer Research UK and enable them to ensurethat the financial statements comply with the CompaniesAct 1985.They are also responsible for safeguarding theassets of Cancer Research UK and the Group, and hencefor taking reasonable steps for the prevention and detectionof fraud and other irregularities.Each person who is a Trustee at the date of approval ofthis report confirms that:• so far as the Trustee is aware, there is no relevantmaterial audit information of which Cancer Research UK’sauditors are unaware; and• each Trustee has taken all the steps that he/she ought tohave taken to make himself/herself aware of any relevantaudit information and to establish that the auditors areaware of that information.The Trustees are responsible for the maintenance andintegrity of the Cancer Research UK website; the workcarried out by the auditors does not involve considerationof these matters, and accordingly, the auditors accept noresponsibility for any changes that may have occurred tothe financial statements since they were initially presentedon the website. Legislation in the United Kingdomgoverning the preparation and dissemination of financialstatements may differ from legislation in other jurisdictions.The Legal and Administrative Details on pages 54 to 59form an integral part of this report.Public benefitWith effect from the financial year 2008/09, the Trusteeswill have a duty to report on ‘public benefit’ by explaining• the significant activities undertaken in order to carry outour aims for the public benefit, and• our achievements measured against those aims.In addition, the Trustees will be required to confirm thatthey have had regard to the Charity Commission’s guidanceon public benefit.Although not mandatory for this year, these explanationsare provided on pages 3 to 11 of this report.AuditorsA resolution for the reappointment ofPricewaterhouseCoopers LLP as auditors for CancerResearch UK will be proposed at the forthcomingAnnual General Meeting.On behalf of the TrusteesDavid NewbiggingChairman30 July 2008£420mwas raised by oursupporters this year

22Independent Auditors’ Report to theMembers of Cancer Research UKWe have audited the Group and parent charitable company (the Charity) financial statements (‘the financial statements’) ofCancer Research UK for the year ended 31 March 2008 which comprise the Consolidated Statement of Financial Activities,the Consolidated and Charity Balance Sheets, the Consolidated Cash Flow Statement and the related notes.These financialstatements have been prepared under the accounting policies set out therein.Respective responsibilities of Trustees and auditorsThe responsibilities of the Trustees (who are also the directors of Cancer Research UK for the purposes of company law)for preparing the financial statements in accordance with applicable law and United Kingdom Accounting Standards(United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of Trustees’ Responsibilities.Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements andInternational Standards on Auditing (UK and Ireland).This report, including the opinion, has been prepared for and only forthe Charity members as a body in accordance with Section 235 of the Companies Act 1985 and for no other purpose.We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whomthis report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.We report to you our opinion as to whether the financial statements give a true and fair view and are properly preparedin accordance with the Companies Act 1985. We also report to you whether in our opinion the information given in theTrustees’ Report is consistent with the financial statements.The information given in the Trustees’ Report includes thatspecific information presented in the Chairman’s Statement, Chief Executive’s Statement and Legal and Administrative Details.In addition we report to you if, in our opinion, the Charity has not kept proper accounting records, if we have not received allthe information and explanations we require for our audit, or if information specified by law regarding Trustees’ remunerationand other transactions is not disclosed.We read other information contained in the Annual Report and consider whether it is consistent with the audited financialstatements.This other information comprises only the Chairman’s Statement, Chief Executive’s Statement, Legal andAdministrative Details and Trustees’ Report.We consider the implications for our report if we become aware of anyapparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to anyother information.Basis of audit opinionWe conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the AuditingPractices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in thefinancial statements. It also includes an assessment of the significant estimates and judgments made by the Trustees in thepreparation of the financial statements and of whether the accounting policies are appropriate to the Group and theCharity circumstances, consistently applied and adequately disclosed.We planned and performed our audit so as to obtain all the information and explanations which we considered necessaryin order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free frommaterial misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluatedthe overall adequacy of the presentation of information in the financial statements.OpinionIn our opinion:• the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted AccountingPractice, of the state of the Group’s and the Charity’s affairs as at 31 March 2008 and of the Group’s incoming resourcesand application of resources, including the Group’s income and expenditure and cash flows, for the year then ended;• the financial statements have been properly prepared in accordance with the Companies Act 1985; and• the information given in the Trustees’ Report is consistent with the financial statements.PricewaterhouseCoopers LLPChartered Accountants and Registered Auditors, London1 August 2008

23 Cancer Research UK Annual Report and Accounts 2007/08Consolidated Statementof Financial Activitiesfor the year ended 31 March 2008 (incorporating an income and expenditure account)EndowmentUnrestricted / restrictedfunds funds Total Total2008 2008 2008 2007Note £000 £000 £000 £000Incoming resourcesIncoming resources from generated fundsVoluntary income 2a 326,815 14,356 341,171 332,601Activities for generating funds 2b 77,822 621 78,443 78,353Investment income 2c 13,040 818 13,858 14,103Incoming resources from charitable activities 3 26,155 16,932 43,087 42,579Total incoming resources 443,832 32,727 476,559 467,636Resources expendedCosts of generating fundsCosts of generating voluntary income 4a 73,985 287 74,272 76,767Costs of fundraising trading 4b 54,979 - 54,979 49,799Costs of managing investments 741 41 782 813Total costs of generating funds 129,705 328 130,033 127,379Net incoming resources available for charitable application 314,127 32,399 346,526 340,257Costs of charitable activitiesResearch 5 300,932 32,578 333,510 315,492Research – exceptional item 5 - - - 99,182Cancer information and advocacy 5 10,593 157 10,750 9,791Total costs of charitable activities 311,525 32,735 344,260 424,465Governance costs 7 1,480 - 1,480 1,322Total resources expended 442,710 33,063 475,773 553,166Net incoming/(outgoing) resources before transfers 1,122 (336) 786 (85,530)Transfers between funds 26,27 (463) 463 - -Net incoming/(outgoing) resources after transfers 659 127 786 (85,530)Net realised investment gains 13 8,473 591 9,064 3,903Net gains on associate 14 288 - 288 390Net income/(expenditure) for the year 9 9,420 718 10,138 (81,237)Net unrealised investment (losses)/gains 13 (33,861) (1,427) (35,288) 4,141Net actuarial (losses)/gains on pensions 31 (4,923) - (4,923) 25,105Net movement in funds (29,364) (709) (30,073) (51,991)Funds brought forward 26,27 122,060 15,946 138,006 189,997Funds carried forward 26,27 92,696 15,237 107,933 138,006All amounts relate to continuing operations. All gains and losses recognised in the year are included in the ConsolidatedStatement of Financial Activities.There are no material differences between the net income/(expenditure) for the year andthe historical cost equivalents.

24Balance Sheetsas at 31 March 2008Group Group Charity Charity2008 2007 2008 2007Note £000 £000 £000 £000Fixed assetsTangible fixed assets 12 97,988 73,612 89,101 72,294Investments 13 228,942 289,366 218,387 276,418Investment in associate 14 844 556 - -Investments in subsidiaries 15 - - 200 200Goodwill 16 (7,126) - - -320,648 363,534 307,688 348,912Current assetsStock 17 1,998 2,256 490 614Debtors 18 46,117 33,619 46,822 33,449Cash and short term deposits 32b 50,676 60,259 29,059 56,12798,791 96,134 76,371 90,190Creditors: amounts falling due within one year 19 (207,697) (184,579) (196,677) (177,664)Net current liabilities (108,906) (88,445) (120,306) (87,474)Total assets less current liabilities 211,742 275,089 187,382 261,438Creditors: amounts falling due after more than one year 20 (97,116) (126,682) (95,087) (124,356)Provisions for liabilities and charges 21 (2,174) (2,452) (2,174) (2,448)Net assets (excluding pension scheme liability) 112,452 145,955 90,121 134,634Provisions for pension liability 22 (4,519) (7,949) (4,519) (7,949)Net assets (including pension scheme liability) 107,933 138,006 85,602 126,685FundsEndowment and restricted fundsRestricted funds 26 11,431 12,022 4,778 9,928Permanent endowment funds 26 3,806 3,924 1,524 1,40015,237 15,946 6,302 11,328Unrestricted fundsDesignated funds 27 89,101 83,294 89,101 83,294Free reserves (including revaluation reserve) 27 8,114 46,715 (5,282) 40,012Pension deficit 27 (4,519) (7,949) (4,519) (7,949)92,696 122,060 79,300 115,357Total funds 28 107,933 138,006 85,602 126,685The financial statements were approved by the Trustees on 30 July 2008 and signed on their behalf by:David NewbiggingChairmanDr Keith F PalmerTreasurer

25 Cancer Research UK Annual Report and Accounts 2007/08Consolidated Cash Flow Statementfor the year ended 31 March 20082008 2007Note £000 £000Net cash (outflow)/inflow from operating activities 32a (20,620) 55,128Investment income 13,858 14,103Capital expenditure and financial investmentsPurchase of tangible fixed assets (33,843) (22,886)Purchase of fixed asset investments (345,706) (152,995)Proceeds from sale of fixed asset investments 379,777 102,624Net cash inflow/(outflow) from investing activities 228 (73,257)Management of liquid resources(Increase)/decrease in short term deposits (investment assets) (3,049) 2,101Decrease in short term deposits (current assets) 31,400 4,900Net cash inflow from liquid resources 28,351 7,001Increase in cash 32b 21,817 2,975

26Notes to the Accounts1. Accounting policiesAccounting conventionThese accounts have been prepared under the historical cost convention as modified by the revaluation of investmentproperties and listed investments.They comply with the Statement of Recommended Practice ‘Accounting and Reportingby Charities’ as revised in 2005 (‘the SORP’), together with the reporting requirements of the Companies Act 1985 –subject to a true and fair override in respect of investment properties – and applicable accounting standards.Thesignificant accounting polices adopted are described below and are consistent with previous years.Basis of consolidationThe consolidated accounts incorporate the results of Cancer Research UK (‘the Charity’), its subsidiary undertakings andits share of the results of its associate.The consolidated entity is referred to as ‘the Group’. No separate companyStatement of Financial Activities (SOFA) has been prepared for the Charity as permitted by section 230 of the CompaniesAct 1985 and paragraph 397 of the SORP.Associated undertakingsThe Group’s share of its associated undertaking is included in the Group SOFA under the equity method of accounting.The Group balance sheet shows the investment in its associate at cost, less amounts written off.Incoming resourcesIncoming resources are included in the SOFA when the Group is entitled to the income and it can be quantified withreasonable certainty. Donations in kind, other than items donated for sale, are recognised at their value to the Groupwhen they are received. No amounts are included for services donated by volunteers. Incoming resources comprise:Voluntary incomeLegaciesDonor marketingNational eventsCommunity fundraisingGift AidActivities for generating fundsShop incomePecuniary legacies are recognised as they are received. Residuary legacies are recognised atthe earlier of receipt or agreement of the estate accounts. Reversionary interests involvinga life tenant are not recognised due to the intrinsic uncertainties in valuing them.Donations are accounted for as received.Income from major events, including related sponsorship but excluding events registrationand merchandise, is recognised in the period in which the event takes place.Income from groups of friends and local committees is accounted for when fundsare received.Gift Aid is included based on amounts recoverable at the accounting date.All retail income – from both donated and bought-in goods – is accounted for when thesale takes place.Events registration Registration fees are recognised when the event takes place. Sales of merchandise areand merchandiseaccounted for when the transaction occurs.Investment income Investment income is accounted for on an accruals basis.Incoming resources from charitable activitiesGrant incomeGrant income is recognised when the Group is entitled to receipt.Technology development Licence fees, royalties, assignment and option fees are recognised gross, before revenueshare payments to third parties, on the basis that risk and rewards remain with the Group.Phased contractual receipts are recognised when they are due and on completion of theGroup’s contractual obligations for the period.

27 Cancer Research UK Annual Report and Accounts 2007/081. Accounting policies (continued)Resources expendedExpenditure is accounted for on an accruals basis. Allocations of support costs are based on the appropriate combinationof staff time, department headcount, direct expenditure and activity levels. Irrecoverable VAT is included with the expenseitems to which it relates. Resources expended comprise:Costs of generatingvoluntary incomeCosts of fundraising tradingCosts of managinginvestmentsCosts of charitable activitiesResearchCancer informationand advocacyGovernance costsThese include salaries and directly attributable overheads, plus a proportion of centralsupport costs.Shop costs include the cost of goods sold and the direct costs of operating the shops, plusa proportion of central support costs. No value is ascribed to goods donated for sale.These include salaries and other direct costs of managing the investment portfolio.The presentation of charitable activities flows from the Charity’s vision and purpose.This is the work that we carry out to fulfil our first and second purpose statements:‘We carry out world-class research to improve our understanding of cancer and find outhow to prevent, diagnose and treat different types of cancer’ and ‘We ensure that ourfindings are used to improve the lives of cancer patients’. It includes basic, translational andclinical research.This involves the work to address our third purpose statement:‘We help people tounderstand cancer, the progress we are making and the choices each person can make.’It includes advocacy and activities to influence public policy.These are the central running costs of the Charity, including strategic planning andpublic accountability.The Group funds research by employees (‘direct costs’) and grant-funded researchers (‘grant costs’)Direct costsThese include an allocation of technical support costs.Grant costsA research grant liability is recognised when the Group formally notifies the recipient ofthe award.The liability is measured as the total of expected payments for the period tothe next scientific review. Provision is made for the expected total payments on lifechairs/fellowships when the appointment is first made. Grant liabilities for awards wheremore than five years of expected payments are provided at the outset are discounted tocurrent value using the weighted average cost of capital.Support costsOverhead costs which are integral to the Group’s charitable activities are allocatedaccordingly as shown in Note 8.Net investment gains and lossesThe SOFA includes realised gains and losses from the sale of investments and unrealised gains and losses arising from therevaluation of investments.

28Notes to the Accounts (continued)1. Accounting policies (continued)Fixed assets and depreciationFixed assets are included at cost where that is greater than £2,500 for the Charity and its charitable subsidiaries and £500for its trading subsidiaries, except that batches of items individually below those thresholds are capitalised if they form partof one project and together cost more than £50,000. Software is only capitalised where its cost exceeds £50,000.Thecosts of laboratory refurbishments are written off as they are incurred. Depreciation is provided so as to write off the costof fixed assets on a straight-line basis over their expected useful economic lives, as follows:Freehold landNot depreciatedFreehold buildings25 yearsLeasehold buildings and research facilities25 years, or lease period if shorterPlant and equipment4–5 yearsShop fixtures and fittings5 yearsComputer equipment and software3 yearsImpairment of fixed assetsFixed assets are subject to review for impairment when there is an indication of a reduction in their carrying value.Any impairment is recognised in the SOFA in the year in which it occurs.InvestmentsListed investments are stated at market value.They are revalued immediately prior to disposal: as a result, no gain or lossarises on sale. Unlisted investments are included at cost as an approximation to market value, unless there is specificevidence to the contrary. Subsidiary companies are valued at cost. Cash deposits intended to be held for the long termare shown under investments. All other cash balances are included as current assets.The SOFA includes unrealised gainsand losses arising from the revaluation of the investment portfolio in the year.Investment propertiesInvestment properties are included in the balance sheet at their estimated market value. Investment properties areformally revalued at least every five years by professional valuers and are reviewed annually to ensure that the mostrecent formal valuation is still reasonable. No depreciation is provided on investment properties, which represents adeparture from the Companies Act 1985 requirements.These properties are held for investment and the Trusteesconsider that this policy is necessary to give a true and fair view in accordance with accounting standards.GoodwillGoodwill is calculated as the difference between the cost of a consolidated entity and the aggregate of the fair values ofthat entity’s assets and liabilities. Negative goodwill arises when the aggregate fair values of the consolidated entity’s assetsand liabilities exceed any acquisition cost. Negative goodwill is recognised in the SOFA in the periods in which the assetsare recovered. Negative goodwill arising from the acquisition of the Beatson institute for Cancer Research is amortised ona straight line basis over 10 years.StockStock purchased for sale and research consumables are valued at the lower of cost and net realisable value. Stock doesnot include the value of goods donated for sale in the Group’s charity shops.Short term depositsShort term deposits are current asset investments that are readily convertible into cash at or close to their carrying amount.

29 Cancer Research UK Annual Report and Accounts 2007/081. Accounting policies (continued)Fund accountingRestricted funds can only be used for particular purposes within the objectives of the Charity and its charitablesubsidiaries. Restrictions arise when specified by the donor or when funds are raised for particular purposes.Permanent endowment funds are funds where the capital is held until the objectives of the Charity, or of the Trust deedsof each fund, are satisfied.Designated funds are funds set aside by the Trustees out of unrestricted free reserves.Free reserves are funds that can be used for any purpose within the Charity’s objectives.Pension deficit is reflected separately in reserves in accordance with the SORP.Pension costsThe current service cost of the two defined benefit schemes which operated during the year is charged to employeecosts over the anticipated period of employment. Net pension finance income or costs are included immediately inemployee costs. Actuarial gains and losses are recognised immediately on the face of the SOFA. A provision for thecombined scheme deficits is shown on the face of the balance sheet.The amounts charged to the SOFA for definedcontribution schemes represent the contributions payable in the period.Property dilapidation provisionThe Group recognises dilapidation costs as they crystallise, or when plans to terminate the lease are confirmed.Foreign currencyTransactions in foreign currency are recorded at the rate of exchange prevailing at the time of the transaction. Foreigncurrency balances are translated into sterling at the exchange rates prevailing at the balance sheet date. Any gains or losseson exchange are included in the SOFA.The Group hedges net currency exposures (balances or future income and expenditure) of its trading subsidiaries bymeans of forward exchange contracts of up to 12 months. Gains and losses on forward exchange contracts arerecognised in the SOFA at the same time as the hedged exposure.Profits and losses of foreign subsidiaries are translated to sterling at average rates of exchange.The opening net assets andprofit and loss accounts of those subsidiaries are retranslated to year end rates; exchange differences arising on theretranslation are taken to reserves.LeasesRentals payable under operating leases are charged to the SOFA evenly over the period of the lease.TaxationThe activities of the Charity and its charitable subsidiaries are exempt from corporation taxation under section 505 of theIncome and Corporation Taxes Act 1988 to the extent that they are applied to the organisation’s charitable objectives.Thetrading subsidiaries do not pay UK corporation tax because their policy is to pay taxable profits as Gift Aid to the Charity.Foreign tax incurred by overseas subsidiaries is charged as it is incurred.

30Notes to the Accounts (continued)2. Incoming resources from generated fundsa) Voluntary income2008 2007£000 £000Legacies 147,877 137,982Donor marketing 93,924 90,309National events 60,957 65,855Community fundraising 27,004 29,993Major gifts and corporate fundraising 7,757 5,482Shop donations 3,004 2,980Amortisation of negative goodwill (Note 16) 648 -341,171 332,601The prior year comparatives have been restated to reflect the current year classifications.The Group is entitled to legacies that have not been accrued for as no notification of impending distribution has beenreceived as at 31 March 2008.The amounts estimated in respect of these legacies are £90 million (2007: £90m).At 31 March 2008 the Charity had an interest in 1,521 estates that are subject to a life interest (31 March 2007 – 1,542).b) Activities for generating fundsShop income (sale of donated and bought-in goods) 63,794 63,643Events registrations and merchandise 12,740 12,855Other income from activities for generating funds 1,909 1,85578,443 78,353c) Investment incomeUK listed equity investments 3,566 3,846UK fixed and variable interest stocks 2,735 2,285Overseas fixed and variable interest stocks 91 132Overseas listed equity investments 2,260 1,708Cash investments 4,254 5,337Property funds 952 79513,858 14,103GroupGroup3. Incoming resources from charitable activities2008 2007£000 £000Research 42,663 39,256Cancer information and advocacy 424 3,32343,087 42,579GroupGroup

31 Cancer Research UK Annual Report and Accounts 2007/084. Costs of generating fundsa) Costs of generating voluntary income2008 2007£000 £000Legacies 7,761 8,452Donor marketing 25,244 27,462National events 23,219 22,635Community fundraising 12,683 15,662Major gifts and corporate fundraising 2,891 2,556Supporter Relationship Management 2,474 -74,272 76,767The prior year comparatives have been restated to reflect the current year classifications.b) Costs of fundraising tradingShop costs (including costs of bought-in goods) 54,381 49,341Other goods sold 598 45854,979 49,799Shop costs include a £5.1m apportionment of central support costs, which was not the case in 2006/07 – see Note 8.5. Costs of charitable activitiesDirect Grant Support 2008 2007costs costs costs Total Total£000 £000 £000 £000 £000Research 147,120 159,447 26,943 333,510 315,492Research – exceptional item - - - - 99,182Cancer information & advocacy 9,172 - 1,578 10,750 9,791156,292 159,447 28,521 344,260 424,465The Trustees’ Report provides analysis of research activity by cancer type.GroupGroupGroupGroup6. Grant costs2008 2007£000 £000Grants provided in the year 162,161 166,529Grants provided in the year – exceptional item - 99,182Increase in provision for funding of life chairs and fellowships 3,227 2,090Write back of underused grants (7,921) (5,180)Finance charge on provision for life chairs and fellowships 1,416 1,157Discount on provision for training grants 564 (1,634)159,447 262,144GroupGroup

32Notes to the Accounts (continued)6.1 Grant commitments and creditorsThis table analyses the movement of grant commitments and creditors in the year and shows when they are expected tobe paid out.Amounts due for payment in the year to 31 MarchTotal 2008 2009 2010 2011 2012 2013onwards£000 £000 £000 £000 £000 £000 £000Grant commitments (not included in the accounts)Balance at 1 April 2007 338,896 54,272 81,766 77,865 54,632 38,243 32,118Movements in the yearNew awards 141,651 1,876 57,181 27,469 23,792 16,981 14,352Awards recognised (transfer to creditors) (167,368) (41,989) (91,565) (19,070) (9,996) (1,827) (2,921)Adjustments (17,385) (14,159) 297 2,424 5,139 (4,152) (6,934)Balance at 31 March 2008 295,794 - 47,679 88,688 73,567 49,245 36,615Grant creditors – research grants, life chairs and fellowshipsBalance at 1 April 2007 259,891 133,209 63,380 26,908 10,933 5,530 19,931Movements in the yearAwards recognised 167,368 41,989 91,565 19,070 9,996 1,827 2,921Write back of underused grants (7,921) (6,220) (1,701) - - - -Grant costs 159,447 35,769 89,864 19,070 9,996 1,827 2,921Grant payments (168,978) (168,978) - - - - -Balance at 31 March 2008 250,360 - 153,244 45,978 20,929 7,357 22,852Total grant commitments and creditorsBalance at 31 March 2008 546,154 - 200,923 134,666 94,496 56,602 59,467Balance at 1 April 2007 598,787 187,481 145,146 104,773 65,565 43,773 52,049During the year the Charity approved grant commitments to its subsidiary company Cancer Research Technology Ltd(CRT) totalling £42,335,000 to fund significant expansion of its development laboratories over the next five years.Adjustments to commitments arise from variations such as changes in various inflationary assumptions used, thenon-renewal of grants and any additional commitments entered into.This figure also includes the elimination in the Groupaccounts of £10,000,000 committed to the research facility at the Beatson Institute for Cancer Research which wasrecognised as a grant commitment in the prior year.Grant liabilities for awards where more than five years of expected payments are provided at the outset have beendiscounted using a weighted average cost of capital of between 5.802% (1 year) and 5.010% (15–19 years)(2007: between 5.84% (1 year) and 5.15% (15–19 years)).An analysis of grant-funded research by host institution with details of the grants awarded during the year, forming partof these audited financial statements, can be found on the Charity’s website atwww.cancerresearchuk.org/aboutus/whoweare/ourreportsandaccounts/grants07_08/grants/

33 Cancer Research UK Annual Report and Accounts 2007/087. Governance costs2008 2007£000 £000Strategy, Council and Committee costs 973 854Internal audit 190 272Auditors’ remuneration 103 104Other governance costs 214 921,480 1,3228. Support costsSupport costs of £44,754,000 have been allocated to SOFA categories as shown below.Costs of charitable activitiesResearch Cancer Total Costs of Costs of Governance Group Groupinformation costs of generating generating costs 2008 2007charitable voluntary fundraisingexpenditure income tradingSupport cost Basis of split £000 £000 £000 £000 £000 £000 £000 £000Information Services A 14,153 1,001 15,154 5,515 - - 20,669 12,350Finance B, C, D 5,307 301 5,608 3,017 2,132 25 10,782 9,271People and OrganisationalDevelopment A 2,106 149 2,255 979 2,011 - 5,245 3,657Corporate Resources A, E, F 4,922 112 5,034 1,170 761 - 6,965 4,910Legal A 455 15 470 419 204 - 1,093 1,50026,943 1,578 28,521 11,100 5,108 25 44,754 31,688A Headcount B Time spent C Transaction volumesD Staff costs E Non-staff costs F Insurance premium shareThe allocation of support costs has been reviewed during the year. An apportionment of support costs is now allocatedto fundraising trading, which was not the case in 2006/07.This change increases by around 1% the percentage of fundsraised that are available to beat cancer, excluding retail, which is shown on page 12 of the Trustees’ Report.GroupGroup9. Net income/expenditure for the yearGroup Group2008 2007Note £000 £000This is stated after charging/(crediting):Depreciation provided during the year 12 11,598 8,225Impairment 12 - 1,235Rentals payable under operating leases:– Plant and machinery 1,068 1,190– Other 18,586 16,920Rents receivable (1,257) (939)Irrecoverable VAT 6,599 6,095Auditors’ remuneration:– Audit fees: current auditors 103 95– Audit fees: previous auditors - 9– Other fees and taxation fees paid to current auditors 92 56Foreign corporation tax 2 2

34Notes to the Accounts (continued)10. Incoming resources and net decrease in funds – Charity onlyThe Consolidated Statement of Financial Activities is for the Group as a whole.The figures below are the equivalentfigures for the Charity only, excluding other Group companies:• Charity only total incoming resources for the year ended 31 March 2008 totalled £423,000,000 (2007: £422,000,000).• Charity only net decrease in funds in the year totalled £41,083,000 (2007: £54,231,000).11. Employees and Trusteesa) EmployeesThe average number of employees and officers of the Group during the year, whose gross pay and benefits (excludingemployer pensions contributions and awards to inventors) fell within the following bands, was:2008 2007Banding £000 £000Up to £60,000 3,935 3,710£60,001 - £70,000 38 27£70,001 - £80,000 30 33£80,001 - £90,000 21 16£90,001 - £100,000 9 8£100,001 - £110,000 7 6£110,001 - £120,000 1 3£120,001 - £130,000 4 3£130,001 - £140,000 3 2£140,001 - £150,000 2 2£150,001 - £160,000 2 -£200,001 - £210,000 - 1£250,001 - £260,000 1 -4,053 3,811In addition to the employees, there are over 3,124 scientists, technicians and other staff engaged in cancer researchthroughout the United Kingdom who were supported by grants made by the Group (2007: 2,850).Pension benefits are accruing under defined benefit schemes for 97 of the Group’s employees included in the bandingsabove £60,000 (2007: 74). Payments to defined contribution schemes in the year in respect of those employees includedin the bandings above £60,000 totalled £57,000 (2007: £52k).The average number of Group and Charity employees, analysed by function, was:Group Charity Group Charity2008 2008 2007 2007No. No. No. No.Scientific research, information and advocacy 1,493 1,248 1,409 1,316Fundraising 2,034 2,034 1,943 1,943Support services 526 489 459 4594,053 3,771 3,811 3,718GroupGroup

35 Cancer Research UK Annual Report and Accounts 2007/0811. Employees and Trustees (continued)The employee costs for the Group and Charity were:Group Charity Group Charity2008 2008 2007 2007Wages and salaries 99,711 88,296 89,205 82,061Social security costs 8,817 7,787 7,808 7,108Pension costs 10,604 9,493 10,989 10,237119,132 105,576 108,002 99,406b) TrusteesNo Trustee has received any remuneration from the Group during the year (2007: nil).The total expenses reimbursed to 11 Trustees amounted to £11,945 (2007: £13,003 to 10 Trustees).This represents traveland subsistence expenses incurred in attending Council, Committee meetings and Charity events in their official capacity.12. Tangible fixed assetsa) GroupFreehold Leasehold Freehold & Plant, Assets in the Shop Totalland & properties leasehold equipment, course of leases,buildings improvements fixtures construction fixtures& fittings& fittings£000 £000 £000 £000 £000 £000 £000CostAt 1 April 2007 40,073 15,481 14,924 95,649 5,662 9,699 181,488Additions - 1,516 817 12,876 17,001 1,633 33,843Net book value of assets at date ofacquisition of subsidiary (Note 16) - - - 3,178 - - 3,178Transfers - - - 1,151 (1,151) - -Disposals - (1,701) (365) (8,534) - (2) (10,602)At 31 March 2008 40,073 15,296 15,376 104,320 21,512 11,330 207,907DepreciationAt 1 April 2007 16,405 1,711 11,136 71,949 - 6,675 107,876Charge for the year 1,015 700 777 7,798 - 1,308 11,598Disposals - (1,540) (116) (7,899) - - (9,555)At 31 March 2008 17,420 871 11,797 71,848 - 7,983 109,919Net Book ValuesAt 1 April 2007 23,668 13,770 3,788 23,700 5,662 3,024 73,612At 31 March 2008 22,653 14,425 3,579 32,472 21,512 3,347 97,988

36Notes to the Accounts (continued)12. Tangible fixed assets (continued)b) CharityFreehold Leasehold Freehold & Plant, Assets in the Shop Totalland & properties leasehold equipment, course of leases,buildings improvements fixtures construction fixtures& fittings& fittings£000 £000 £000 £000 £000 £000 £000CostAt 1 April 2007 40,073 15,481 14,863 94,043 5,662 8,549 178,671Additions - - 817 9,774 16,907 596 28,094Transfers - - - 1,151 (1,151) - -Disposals - (1,701) (365) (8,484) - (2) (10,552)At 31 March 2008 40,073 13,780 15,315 96,484 21,418 9,143 196,213DepreciationAt 1 April 2007 16,405 1,711 11,077 70,890 - 6,294 106,377Charge for the year 1,015 700 777 6,828 - 921 10,241Disposals - (1,540) (116) (7,850) - - (9,506)At 31 March 2008 17,420 871 11,738 69,868 - 7,215 107,112Net Book ValuesAt 1 April 2007 23,668 13,770 3,786 23,153 5,662 2,255 72,294At 31 March 2008 22,653 12,909 3,577 26,616 21,418 1,928 89,101The Group has freehold property with a net book value of £22,653,000 (2007: £23,668,000). Having discussed the matterwith a firm of chartered surveyors, the Trustees are of the opinion that both the aggregate existing use value and theaggregate market value of the tangible fixed asset properties are in excess of £100 million.The Group and Charity assets in course of construction include £10,765,000 in respect of the Poplar Block researchbuilding and £5,104,000 for a new Biotherapeutics Development Unit at Clare Hall.

37 Cancer Research UK Annual Report and Accounts 2007/0813. InvestmentsGroup Group Charity Charity2008 2007 2008 2007£000 £000 £000 £000At market valueUK listed equity investments 61,811 115,979 56,096 107,167UK fixed and variable interest stocks 65,127 79,474 63,418 77,636UK cash investments 8,827 10,711 7,431 9,831UK property fund* 22,620 26,513 22,620 26,512UK investment properties 647 1,502 647 1,501Investments in UK unlisted companies 385 390 - -Total UK investments 159,417 234,569 150,212 222,647Overseas fixed and variable interest stocks 3,368 1,217 2,307 386Overseas listed equity investments 66,157 53,580 65,868 53,385Total overseas investments 69,525 54,797 68,175 53,771Total investments 228,942 289,366 218,387 276,418*This single investment represents 5% or more of the portfolio by market value in both the Group and Charity.2008 2008£000 £000At 1 April 2007 289,366 276,418Additions 345,706 343,735Disposal proceeds (379,777) (376,744)Net realised investment gains 9,064 8,475Net unrealised investment losses (35,288) (32,844)Net movement in cash (129) (653)At 31 March 2008 228,942 218,387The historical cost of Group and Charity investments at 31 March 2008 was £235,866,000 (2007: £260,678,000) and£226,441,000 (2007: £250,848,000) respectively.Investment properties consist of land and property bequeathed to the Charity and its predecessor charities.The intentionof the Trustees is to realise these investments at a time that will maximise their value to the Charity. In view of the level ofinvestment properties held, separate details of each valuation are not reported.GroupCharity

38Notes to the Accounts (continued)14. Investment in associateCancer Research UK is one of two members of onCore UK, a charitable company limited by guarantee and incorporatedin England and Wales. Control of the Board of Directors is shared equally between the three funders (Cancer Research UK,the MRC and the Department of Health). onCore UK serves as a national cancer biosample and information resource toenable research towards the discovery and development of new interventions against cancer. Horwath Clark Whitehill LLPare the auditors of onCore UK.Share of net assets2008 2007The Group’s share of: £000 £000Fixed assets 41 19Current assets 827 572Creditors (24) (35)Share of net assets 844 556GroupGroupShare of net gains on associate2008 2007The Group’s share of: £000 £000Voluntary income – grants 592 682Interest receivable 31 17Total incoming resources 623 699Charitable expenditure (331) (301)Governance costs (4) (8)Share of net gains on associate 288 390There were no related party balances between Cancer Research UK and onCore UK as at 31 March 2008 and 2007.GroupGroup15. Investments in subsidiariesCharity£000At 1 April 2007 and 31 March 2008 200For the purposes of the accounts, the Charity is deemed to control 100% of the following entities with charitable objects:Imperial Cancer Research Fund (charity established by Royal Charter)The Cancer Research Campaign (company limited by guarantee)The Gibb Research Fellowship Endowment Fund (permanent endowment fund created by a will trust)War on Cancer (created through a declaration of trust)American Friends of Cancer Research Inc (USA 501(3)(c) corporation)Cancer Research Campaign (Jersey Trust Fund) (created through a declaration of trust)The Nuffield Research Fellowship (created through a declaration of trust)The Beatson Institute for Cancer Research (company limited by guarantee)Beatson Technology Limited (company limited by guarantee)

39 Cancer Research UK Annual Report and Accounts 2007/0815. Investments in subsidiaries (continued)The Charity controls the operations of the following entities through ownership of share capital:NamePortion held Portion held Activitiesby Charityby otherGroup companiesCancer Research UK Trading Ltd 100% Retail and fundraising income generationCancer Research Technology Ltd 100% Technology developmentCancer Research Technology Inc 100% Technology developmentCancer Research Campaign Promotions Ltd 100% DormantImperial Cancer Research Fund Trading Ltd 100% DormantImperial Cancer Research Technology Ltd 100% DormantCancer Research Ventures Ltd 100% DormantUK Centre for Medical Research andInnovation Ltd (formerly National Cancer Day Ltd) 100% DormantRelay for Life Ltd 100% DormantCancer Research Campaign Technology Ltd 100% DormantCancer Research Technology Transfer Ltd 100% DormantNorth of England Cancer Research Campaign 100% DormantCancer Research N. Ireland Ltd 100% DormantCancer Research UK Guernsey Ltd 100% DormantCancer Research UK Scotland Ltd 100% DormantCancer Research Campaign (Jersey Trust Fund) is established in Jersey. Cancer Research UK Guernsey Ltd is incorporatedin Guernsey, Cancer Research Technology Inc and the American Friends of Cancer Research Inc are incorporated in thestate of Florida in the United States of America.The summarised financial information of the subsidiary undertakings that are material to the Group is provided below:a) Trading subsidiary – activities for generating fundsCancer Research UKTrading Ltd2008 2007£000 £000Turnover 24,006 24,736Cost of sales (22,018) (19,499)Net operating costs 88 (145)Profit on ordinary activities 2,076 5,092Taxation (40) -Profit on ordinary activities after taxation and before Gift Aid payable 2,036 5,092Gift Aid payable to Cancer Research UK (2,036) (5,137)Retained deficit for the year - (45)Assets 7,939 6,097Liabilities (7,939) (6,097)Net assets - -

40Notes to the Accounts (continued)15. Investments in subsidiaries (continued)b) Trading subsidiaries – activities in furtherance of the Group’s objectsCancer ResearchTechnology LtdCancer ResearchTechnology Inc2008 2007 2008 2007£000 £000 £000 £000Turnover 34,233 26,225 308 270Cost of sales (28,532) (23,182) (285) (259)Profit on sale of fixed assets 28 115 - -Interest payable (66) (58) - -Interest receivable 548 450 - -Profit on ordinary activities 6,211 3,550 23 11Gift Aid payable to Cancer Research UK (4,150) (2,460) - -Taxation - - - (2)Profit after taxation and retained profit for the year 2,061 1,090 23 9Assets 28,609 20,882 109 85Liabilities (21,937) (16,271) (77) (76)Net assets 6,672 4,611 32 9Beatson Technology Limited is a wholly owned subsidiary of the Beatson Institute for Cancer Research.The company wasestablished to undertake commercial developments arising as a by-product of the Institute’s medical research activities.Currently, the company has no trading activities.c) Charitable subsidiariesImperial Cancer The Cancer War onResearch Fund Research Campaign Cancer2008 2007 2008 2007 2008 2007£000 £000 £000 £000 £000 £000Incoming resourcesVoluntary income 46,263 41,863 38,985 35,829 61 320Investment income - - - - 123 172Total income 46,263 41,863 38,985 35,829 184 492Charitable expenditureGrant costs - - - - 38 (1,215)Governance costs - - - - - -Total resources expended - - - - 38 (1,215)Net (losses)/gains on investments - - - - (294) 264Net movement in funds 46,263* 41,863* 38,985* 35,829* (72) (459)Assets - - - - 2,149 3,727Liabilities - - - - (217) (1,723)Net assets -* -* -* -* 1,932 2,004*All amounts received in the year were transferred to the Charity.

41 Cancer Research UK Annual Report and Accounts 2007/0815. Investments in subsidiaries (continued)c) Charitable subsidiariesThe Gibb ResearchThe Beatson InstituteFellowship Endowment Fund for Cancer Research2008 2007 2008£000 £000 £000Incoming resourcesVoluntary income - - 13,180Charitable activities - - 596Investment income 301 377 394Total income 301 377 14,170Charitable expenditureResearch (46) (106) (10,042)Governance costs (36) (35) (69)Total resources expended (82) (141) (10,111)Net (losses)/gains on investments (500) 145 (42)Net movement in funds (281) 381 4,017Assets 6,893 7,092 14,409Liabilities (4,650) (4,568) (2,618)Net assets 2,243 2,524 11,791The results of the Beatson Institute for Cancer Research are from the date of acquisition (14 June 2007) until 31 March 2008.16. AcquisitionsOn 14 June 2007 the Beatson Institute for Cancer Research (the ‘Institute’) became a 100% subsidiary undertaking of theCharity for accounting purposes, by virtue of changes to its board of directors.The principal object of the Institute is tocarry out research and investigation into the causes, mechanisms and treatment of cancer.The Institute has a wholly-ownedsubsidiary, Beatson Technology Limited, which exploits intellectual property arising in the course of the Institute’s researchwork.This acquisition has been accounted for using the purchase method of accounting.The Trustees do not consider itnecessary to make any adjustments to the Group balance sheet to reflect the fair value of the Institute’s assets at acquisition,in light of the common accounting policies and the nature of those assets.Those net assets at acquisition were:Book value£000Tangible fixed assets 3,178Investments 413Debtors 1,106Cash and short term deposits 7,895Creditors: amounts falling due within one year (4,818)Total net assets acquired 7,774Amortisation of negative goodwill (648)Goodwill at 31 March 2008 7,126

42Notes to the Accounts (continued)16. Acquisitions (continued)The excess of the fair value of the assets acquired over the value of the liabilities assumed amounted to £7,774,214, and isrecognised as negative goodwill in the balance sheet.The negative goodwill arising from the acquisition is being amortisedon a straight line basis over 10 years. For the year ended 31 March 2008 £647,833 has been released to the SOFA.The Beatson group, which is principally funded by the Charity, contributed £3.3 million of external funding to the Group’sincoming resources, £10.2 million to the Group’s resources expended and (£6.9) million to the Group’s net (outgoing)/incomingresources for the period between the date of acquisition and 31 March 2008. In this period revenue and capital grant fundingreceivable from the Charity amounted to £9.9 million.This is eliminated on consolidation.The net incoming resources of theInstitute were £248,046 for the period from 1 April 2007 to 13 June 2007 and £1,501,582 for the year to 31 March 2007.17. StockGroup Group Charity Charity2008 2007 2008 2007£000 £000 £000 £000Goods for resale 1,780 1,734 272 92Research and fundraising stores 218 522 218 5221,998 2,256 490 61418. DebtorsGroup Group Charity Charity2008 2007 2008 2007£000 £000 £000 £000Trade debtors 5,342 4,764 4,493 3,580Amounts due from Group undertakings - - 10,707 8,384Taxation recoverable 14,764 6,999 14,607 6,777Other debtors 4,321 2,070 4,338 2,124Prepayments 10,031 10,062 7,981 8,413Accrued income 11,659 9,724 4,696 4,17146,117 33,619 46,822 33,449Other debtors include balances of £1.6 million (2007: £1.2m) which are due after more than one year and £1.8 million inrelation to the Charity’s share of the deposit on the UKCMRI site purchase.The Charity has made a loan to its trading subsidiary company Cancer Research Technology Ltd (CRT) amounting to£1 million.The loan is secured on the assets of CRT, excluding intellectual property, and attracts interest at base rate plus1%.The amount outstanding is repayable in full on 31 March 2015 or on 13 calendar months notice from the Charity.19. Creditors: amounts falling due within one yearGroup Group Charity Charity2008 2007 2008 2007£000 £000 £000 £000Grants payable – research grants 150,271 130,932 154,045 130,547Life chairs and fellowships 2,973 2,277 2,694 2,105Trade creditors 16,207 13,373 12,186 11,368Amounts due to Group undertakings - - 2,551 6,300Tax and social security creditors 616 2,616 61 2,616Other creditors 1,650 501 1,661 467Accruals 24,449 25,639 16,930 19,400Deferred income 11,531 9,241 6,549 4,861207,697 184,579 196,677 177,664

43 Cancer Research UK Annual Report and Accounts 2007/0820. Creditors: amounts falling due after more than one yearGroup Group Charity Charity2008 2007 2008 2007£000 £000 £000 £000Grants payable – research grants 69,731 100,958 69,668 100,958Life chairs and fellowships 27,385 25,724 25,419 23,39897,116 126,682 95,087 124,35621. Provisions for liabilities and chargesProperties Insurance Research Fundraising Group Charity£000 £000 £000 £000 £000 £000At 1 April 2007 1,288 238 926 - 2,452 2,448Charged to the SOFA 313 133 320 15 781 781Used during the year (294) (51) (714) - (1,059) (1,055)At 31 March 2008 1,307 320 532 15 2,174 2,174The properties provision relates to:• anticipated net rental costs of vacant offices and shops until they are reasonably expected to be sublet or otherwise disposedof; and• dilapidation costs on offices and shops where the planned closure of the property has been confirmed before the yearend date.The insurance provision relates to known third party claims against the Group.The research and fundraising provisions relate to costs expected to arise from reviews within these areas.22. Provision for pension liability£000 £000At 1 April 2007 7,949 7,949Current service cost charged to the SOFA 9,367 9,367Other finance income credited to the SOFA (2,385) (2,385)Curtailments 1,900 1,900Actuarial losses in the year 4,923 4,923Employer contributions paid (17,235) (17,235)At 31 March 2008 4,519 4,519GroupCharity

44Notes to the Accounts (continued)23. Operating leasesThe Group and Charity are committed to payments in the year to 31 March 2009 under non-cancellable operating leases,which expire as follows:Group Group Charity Charity2008 2007 2008 2007£000 £000 £000 £000Land and buildingsWithin one year 711 489 711 489Between one and five years 8,480 5,543 7,830 5,204After five years 8,616 8,076 8,616 8,076Total 17,807 14,108 17,157 13,769Vehicles and equipmentWithin one year 406 111 406 111Between one and five years 1,187 900 1,187 900After five years 16 48 16 48Total 1,609 1,059 1,609 1,05924. GuaranteesThe Charity is party to a Group registration for VAT purposes. As the representative member, the Charity is jointly andseverally liable for any VAT liabilities of the subsidiary companies that are part of the same VAT registration.25. Capital commitmentsFuture capital expenditure on specific projects for the Group of £18.2 million and Charity of £17.4 million had beenapproved but not contracted for as at the year end (2007 Group and Charity: £13.6m).

45 Cancer Research UK Annual Report and Accounts 2007/0826. Endowment and restricted fundsReclassified Incoming Resources Net Transfers Balance atbalance at resources expended investment between 31 March1 April 2007 losses funds 2008£000 £000 £000 £000 £000 £000Restricted fundsGrantsGrant to fund IBIS 2 population study 1 2 (3) - - -Grant to fund anti-tobacco campaign 130 - (129) - - 1Other grants for specific projects 1,029 1,536 (2,993) - - (428)Other restricted fundsBobby Moore Fund 4,509 971 (5,074) - 463 869Clinical Centre for Leeds 1,425 - (503) - - 922Intangible income - 1,125 (1,125) - - -Breast cancer - 1,587 (1,587) - - -NCRI Conference funding 152 2,130 (1,569) - - 713Fredline Research Fund 532 (1) (177) - - 354NCRI 80 501 (393) - - 188North East England Research - 528 (528) - - -Children’s Cancer Research - 1,211 (1,211) - - -CRUK Equipment - 638 (638) - - -Project Fundraising Beatson Appeal - 851 (851) - - -NCRI Informatics 300 1,195 (809) - - 686Partner groups at clinical units 414 124 (150) - - 388Sundry other funds 1,356 4,898 (5,169) - - 1,085Total restricted funds – Charity 9,928 17,296 (22,909) - 463 4,778War on Cancer 2,004 184 38 (294) - 1,932The Gibb Research Fellowship Endowment Fund - - (46) - 46 -Nuffield Fellowship Foundation 90 5 - - - 95The Beatson Institute for Cancer Research - 14,775 (10,110) (39) - 4,626Total restricted funds – Group 12,022 32,260 (33,027) (333) 509 11,431Permanent endowment fundsTotal endowment funds – Charity 1,400 124 - - - 1,524The Gibb Research Fellowship Endowment Fund 2,524 301 (36) (500) (46) 2,243The Beatson Institute for Cancer Research - 42 - (3) - 39Total endowment funds – Group 3,924 467 (36) (503) (46) 3,806Total – Group 15,946 32,727 (33,063) (836) 463 15,237The net assets of the Beatson Institute for Cancer Research at 31 March 2008 of £11,791,000 (Note 15c) are offset bythe difference on consolidation of £7,126,000 which is included as negative goodwill in the balance sheet.The £463,000 transfer to Restricted Funds represents income earned in Cancer Research UK Trading Ltd and transferredto the Bobby Moore Fund.

46Notes to the Accounts (continued)26. Endowment and restricted funds (continued)FundPurpose and restriction in useBobby Moore FundTo fund general bowel cancer research and awarenessClinical Centre for LeedsTo fund research at the clinical centre at St James’ Hospital in LeedsIntangible incomeDonations in kind received for research purposesBreast cancerTo fund research relating to breast cancerNCRI Conference funding To fund cancer conferences organised by Cancer Research UK on behalf ofthe NCRIFredline Research Fund To fund research into colorectal cancer between 2008/09 and 2009/10NCRITo fund the day-to-day running of the National Cancer Research InstituteNorth East England Research To fund research carried out in North East EnglandChildren’s Cancer Research To fund research relating to cancer affecting childrenCRUK EquipmentTo fund the purchase of equipment for in-house and extramural researchProject Fundraising Beatson Appeal To fund research at the Beatson Institute for Cancer ResearchNCRI InformaticsTo fund the day-to-day running of the National Cancer Research InstituteInformatics UnitPartner groups at clinical units To fund research projects at various clinical units. Income is raised jointly and isdivided between the Charity and the partner hospitalWar on CancerTo fund cancer research carried out at the University of BradfordThe Gibb Research Fellowship To fund fellowships and/or studentships for cancer researchEndowment FundNuffield Fellowship Foundation To fund research work and study into the treatment and cure of cancerby radiobiologyEndowment fundsThe income from endowment funds may be spent on research of fellowships,depending on the terms of each individual endowmentThe Beatson Institute forTo fund research projects and investigation into the causes, mechanisms andCancer Researchtreatment of cancer27. Unrestricted fundsa) GroupFixed Research Designated Free Pension Totalasset expansion funds reserves deficit unrestrictedfund fund funds£000 £000 £000 £000 £000 £000Funds/(deficit) at 1 April 2007 72,294 11,000 83,294 46,715 (7,949) 122,060Net incoming/(outgoing) resources before transfers (11,287) - (11,287) 4,056 8,353 1,122Capital expenditure 28,094 - 28,094 (28,094) - -Net losses on investments - - - (25,388) - (25,388)Net gains on associate - - - 288 - 288Actuarial losses on pensions - - - - (4,923) (4,923)Transfers between funds - (11,000) (11,000) 10,537 - (463)Funds/(deficit) at 31 March 2008 89,101 - 89,101 8,114 (4,519) 92,696

47 Cancer Research UK Annual Report and Accounts 2007/0827. Unrestricted funds (continued)b) CharityFixed Research Designated Free Pension Totalasset expansion funds reserves deficit unrestrictedfund fund funds£000 £000 £000 £000 £000 £000Funds/(deficit) at 1 April 2007 72,294 11,000 83,294 40,012 (7,949) 115,357Net incoming/(outgoing) resources before transfers (11,287) - (11,287) (3,367) 8,353 (6,301)Capital expenditure 28,094 - 28,094 (28,094) - -Net losses on investments - - - (24,370) - (24,370)Actuarial losses on pensions - - - - (4,923) (4,923)Transfers between funds - (11,000) (11,000) 10,537 - (463)Funds/(deficit) at 31 March 2008 89,101 - 89,101 (5,282) (4,519) 79,300Designated fundsThese are designated by the Trustees.The fixed assets fund represents the Charity’s investment in fixed assets.The researchexpansion fund was designated to pay for the expected capital costs of plans for new research facilities andcancer research centres around the country.The balance in this fund was released during the year.Free reservesIncluded within free reserves are the following amounts: revaluation reserve relating to cumulative net unrealised losseson revalued investments of £7,333,000 (2007: £28,881,000 cumulative net gain); and undistributed profits from tradingsubsidiaries of £6,504,000 (2007: £4,420,000).28. Analysis of net assets between fundsa) GroupFree Designated Pension Restricted Endowment Totalreserves funds deficit funds funds£000 £000 £000 £000 £000 £000Fixed assetsTangible fixed assets 2,679 89,101 - 6,208 - 97,988Investments 218,817 - - 2,513 8,456 229,786Goodwill - - - (7,126) - (7,126)221,496 89,101 - 1,595 8,456 320,648Current assetsStock 1,998 - - - - 1,998Debtors 44,564 - - 1,553 - 46,117Cash at bank 39,558 - - 11,118 - 50,67686,120 - - 12,671 - 98,791CreditorsAmounts due within one year (202,273) - - (2,835) (2,589) (207,697)Net current liabilities (116,153) - - 9,836 (2,589) (108,906)Total assets less current liabilities 105,343 89,101 - 11,431 5,867 211,742CreditorsAmounts due after one year (95,055) - - - (2,061) (97,116)Provisions for liabilities and charges (2,174) - - - - (2,174)Provision for pension liability - - (4,519) - - (4,519)Total net assets 8,114 89,101 (4,519) 11,431 3,806 107,933

48Notes to the Accounts (continued)28. Analysis of net assets between funds (continued)b) CharityFree Designated Pension Restricted Endowment Totalreserves funds deficit funds funds£000 £000 £000 £000 £000 £000Fixed assetsTangible fixed assets - 89,101 - - - 89,101Investments 217,063 - - - 1,524 218,587217,063 89,101 - - 1,524 307,688Current assetsStock 490 - - - - 490Debtors 46,822 - - - - 46,822Cash at bank 24,281 - - 4,778 - 29,05971,593 - - 4,778 - 76,371CreditorsAmounts due within one year (196,677) - - - - (196,677)Net current liabilities (125,084) - - 4,778 - (120,306)Total assets less current liabilities 91,979 89,101 - 4,778 1,524 187,382CreditorsAmounts due after one year (95,087) - - - - (95,087)Provisions for liabilities and charges (2,174) - - - - (2,174)Provision for pension liability - - (4,519) - - (4,519)Total net assets (5,282) 89,101 (4,519) 4,778 1,524 85,60229. Funding committee members receiving grantsScientists who served on grant-making committees and led research projects that were in receipt of grant funding fromthe Group during the year are set out below by institution of employment.Imperial College LondonProfessor M J Seckl, Professor E O AboagyeManchester Royal InfirmaryProfessor N J BundredMedical Research CouncilProfessor M SeymourNewcastle UniversityProfessor H Calvert, Professor D R Newell, Dr E R Plummer,Professor R J GriffinPaterson Institute for Cancer Research Dr C M L WestQueen Mary, University of LondonProfessor N R Lemoine, Professor B Young, Professor J G Gribben,Professor S J MatherRoyal Free & University College Medical School Professor J Wardle, Professor J A HartleyRoyal Marsden HospitalProfessor G MorganSouth Wales West Cancer InstituteProfessor R C F LeonardSt George’s Hospital Medical SchoolProfessor J R GriffithsThe Churchill HospitalThe Institute of Cancer ResearchProfessor A L HarrisProfessor P Workman, Professor A Horwich, Professor J M Bliss,Professor K Pritchard-Jones, Professor J Yarnold, Professor R M Marais,Professor I Judson, Professor M Olson, Dr R A Eeles

49 Cancer Research UK Annual Report and Accounts 2007/0829. Funding committee members receiving grants (continued)The Queen’s University of BelfastDr R H WilsonThe School of PharmacyProfessor D ThurstonThe University of BirminghamProfessor K K Cheng, Professor P A H Moss, Dr C J Poole,Dr L J BillinghamThe University of DundeeProfessor I S Näthke, Professor D Lane, Professor E B LaneUniversity College LondonProfessor A Ridley, Dr A TuttUniversity of BathDr L BauldUniversity of CambridgeDr P D P Pharoah, Professor G H Williams, Dr J D Brenton,Professor S SuttonUniversity of EdinburghProfessor D JodrellUniversity of ExeterProfessor C MoodyUniversity of GlasgowProfessor J Cassidy, Professor S B Kaye, Professor T R J Evans,Dr K A Oien, Professor R J White, Professor R BrownUniversity of LeedsProfessor J Brown, Professor D FormanUniversity of LeicesterProfessor W Steward, Professor D R CritchleyUniversity of ManchesterProfessor G Jayson, Professor J Radford, Professor I M Hagan,Dr N Burnet, Professor T EdenUniversity of NottinghamDr P M Fischer, Dr T J ColemanUniversity of OxfordDr M Middleton, Professor A B HassanUniversity of SouthamptonProfessor P W M Johnson, Professor C Ottensmeier,Professor J Primrose, Professor M Glennie, Professor T M IllidgeUniversity of St AndrewsProfessor R T HayUniversity of YorkProfessor E RomanVelindre NHS TrustProfessor T S MaughanWeston Park HospitalProfessor R E Coleman, Professor P J WollOf the scientists above, those who headed projects that received grant commitments in excess of £1.5 million in the year are:£000The Institute of Cancer Research Professor P Workman 6,641The Churchill Hospital Professor A L Harris 2,783Newcastle University Professor H Calvert 2,432The Institute of Cancer Research Professor A Horwich 1,592Newcastle University Professor D R Newell 1,582University of Southampton Professor P W M Johnson 1,556Scientists who serve on the Group’s grant-making committees may not participate in any decisions that relate to fundingeither of research projects where they have an interest, or of their institutions.Professor Sir David Lane was appointed as Cancer Research UK’s first Chief Scientist in April 2007. He formally took upthe new post in January 2008, having spent time with the Charity throughout 2007 after his appointment. Professor SirDavid Lane is a member of both the Charity’s Executive and Scientific Executive Boards and is also a fellow of The GibbResearch Fellowship Endowment Fund.Professor Herbie Newell, Interim Executive Director, Clinical & Translational Research and Research Strategy is a memberof both the Charity’s Executive and Scientific Executive Boards.Professor Peter Johnson, Chief Clinician, is a member of both the Charity’s Executive and Scientific Executive Boards and isalso a Life Fellow of Cancer Research UK.

50Notes to the Accounts (continued)30. Financial instrumentsThe unrecognised losses on hedged currency balances held at 31 March 2008 were £nil (2007: £nil). Deferred losses onfinancial instruments used for hedging were £nil (2007: £nil).31. Pensionsa) Pension schemes accounted for as defined benefit schemesDuring the year the Group operated two defined benefit pension schemes – the Cancer Research UK Pension Schemeand the Cancer Research Campaign Pension Plan (CRC Pension Plan). Both schemes were funded and the pensionscheme assets are held separately from those of the Group. Actuarial valuations for both schemes were last carried out asat 31 March 2006.These schemes were merged with effect from 1 February 2008.The merged scheme is known as the Cancer Research UKPension Scheme.This merger will reduce the administrative costs of pension provision for Cancer Research UK employees.Cancer Research UK Pension SchemeSince 1 January 2007, the Charity has contributed to the Scheme at a rate of 18.9% of active members’ salaries, 2.5% ofsalaries for stakeholder members and 0.3% of salaries for members covered for death benefits only.The Charity has madeadditional contributions of £5.4 million for the year to 31 March 2008, and is committed to paying £2.6 million for theyear from 1 April 2008 to 31 March 2009.CRC Pension PlanThis plan is closed to new members. From 1 January 2007, the Charity contributed to the scheme at a rate of 25.4% ofactive members’ salaries.The Charity made additional contributions of £1 million in the year to 31 March 2008.Principal annual actuarial assumptions usedThe results of the 2007 valuations of the schemes were rolled forward by independent consulting actuaries to31 March 2008 using the assumptions set out below:Year to 31 March2008 2007 2006Rate of increase in salaries (excluding promotional scale) 5.2% 4.7% 4.5%Rate of increase to LPI pensions in payment 3.6% 3.2% 2.9%Discount rate for scheme liabilities 6.2% 5.4% 5.0%Inflation assumption 3.7% 3.2% 3.0%The demographic assumptions have been taken to be the same as those adopted for the funding valuation, except inrelation to post-retirement mortality and allowance for commutation.The post-retirement mortality assumption uses the‘92 series’ standard mortality tables based on a year of use of 2008 with Medium Cohort improvements and underpins of1% per annum.The assumptions are that a member who retires immediately at age 65 will live on average for a further22.4 years after retirement if they are male and for a further 25.5 years after retirement if they are female.

51 Cancer Research UK Annual Report and Accounts 2007/0831. Pensions (continued)Analysis of movement in deficit in schemes during the year2008 2007£000 £000Deficit as at 1 April 2007 (7,949) (37,175)Current service cost charged to the SOFA (9,367) (10,415)Other finance income credited to the SOFA 2,385 1,252Curtailments (1,900) -Total actuarial (losses)/gains (4,923) 25,105Contributions 17,235 13,284Deficit as at 31 March 2008 (4,519) (7,949)Where other finance income/(cost) credited/(charged) to the SOFA comprises:Expected return on assets 18,450 16,784Interest on liabilities (16,065) (15,532)2,385 1,252Analysis of actuarial gains and losses recognised in the SOFAActual returns less expected returns on assets (19,913) (2,900)Experience (losses)/gains on liabilities (400) 16,552Changes in assumptions underlying the present value of liabilities 15,390 11,453Actuarial (losses)/gains recognised in SOFA (4,923) 25,105Historical analysis of actuarial gains/(losses) recognised in the SOFA2008 2007 2006 2005 2004Cancer Research UK Pension Scheme £000 £000 £000 £000 £000Actual return less expected return on assets (19,913) (2,900) 34,018 10,874 19,023Percentage of assets at the balance sheet date (6.9%) (1.0%) 12.6% 5.0% 11.0%Experience gains and losses arising on liabilities (400) 16,552 325 902 (4,278)Percentage of liabilities at the balance sheet date (0.1%) 5.5% 0.1% 0.4% (1.9%)Total amounts of gains and losses recognised (4,923) 25,105 1,444 (4,485) (15,963)Percentage of liabilities at the balance sheet date (1.7%) 8.3% 0.5% (1.8%) (7.2%)Fair value of assets and present value of liabilities in the schemesAt 31/03/08 At 31/03/07 At 31/03/06 At 31/03/05Cancer Research UK Pension Scheme £000 £000 £000 £000Equities 162,321 171,045 160,226 132,954Government bonds 93,311 88,052 85,322 59,300Corporate bonds 31,907 30,926 23,084 18,763Cash 2,511 2,916 1,997 2,251Total market value of assets 290,050 292,939 270,629 213,268Present value of liabilities (294,569) (300,888) (307,804) (255,947)Deficit in scheme (4,519) (7,949) (37,175) (42,679)As a result of the merger of the Cancer Research UK Pension Scheme and the Cancer Research Campaign Pension Plan(CRC Pension Plan), disclosures have been made in total as this is considered to be the most useful in accordance withFRS17 – Retirement Benefits.

52Notes to the Accounts (continued)31. Pensions (continued)Long-term expected rates of return on plan assets at the balance sheet dateAt 31/03/08 At 31/03/07 At 31/03/06 At 31/03/05Cancer Research UK Pension Scheme £000 £000 £000 £000Equities 7.75% 8.00% 7.30% 7.70%Government bonds 4.60% 4.70% 4.30% 4.70%Corporate bonds 5.75% 5.20% 4.70% 5.20%Cash 4.60% 4.70% 4.30% 4.70%Pensions payable by annuities held with Prudential have been excluded from the assets and liabilities of theCancer Research UK Pension Scheme since the value of these annuities (which is between £0.5m and £1m) equals thevalue of the pension liabilities they cover under FRS17. Also, as the future return on these annuities is assumed to be equalto the discount rate when calculating the value of the corresponding pension liabilities, this has no impact on the pensioncharge to the SOFA.(b) Pension schemes accounted for as defined contribution schemes(i) Cancer Research UK Stakeholder Pension PlanNew employees are entitled to join the Cancer Research UK Stakeholder Pension Plan, which is a defined contributionplan. Employer contributions to the Cancer Research UK Stakeholder Pension Plan vary depending on the age of theemployee and the employee’s own contributions.(ii) NHS Pension SchemeThe NHS Pension Scheme, of which 13 employees were members at 31 March 2008 (2007: 21), is a statutory unfundedmulti-employer defined benefit scheme. As this is a ‘pay as you go’ scheme, it is accounted for on a defined contributionbasis. Employer’s contribution rates increased to 14% from 1 April 2004.(iii) Scottish NHS Pension SchemeThe Scottish NHS Pension Scheme, of which 37 employees were members at 31 March 2008 (2007: nil), is a statutoryunfunded multi-employer defined benefit scheme. As this is a ‘pay as you go’ scheme, it is accounted for on a definedcontribution basis. Employer’s contribution rates are assessed every five years by the actuary, the current employer’s ratebeing 14%.(iv) Universities Superannuation SchemeThe Universities Superannuation Scheme, of which 129 employees were members at 31 March 2008 (2007: 8), is anexternally funded multi-employer defined benefit scheme. As the Group is unable to identify its share of the underlyingassets and liabilities, this scheme is accounted for on a defined contribution basis.The latest actuarial valuation of thescheme was at 31 March 2005 and at that date the assets were sufficient to cover 77% of the benefits that had accruedto members.All of the pension schemes, with the exception of the Cancer Research UK Stakeholder Pension Plan Scheme, arecontracted out of the State Second Pension (S2P).The employer contribution rates at the year end and the employer’s total pension contributions made during the financialyear in respect of each scheme were as follows:2008 2008 2007 2007Rate £000 Rate £000Cancer Research UK Stakeholder Pension Plan 1-14% 1,135 1-14% 817NHS Pension Scheme 14% (11) 14% 123Scottish NHS Pension Scheme 14% 126 - -Universities Superannuation Scheme 14% 554 14% 39Defined contribution pension charge in the SOFA 1,804 979

53 Cancer Research UK Annual Report and Accounts 2007/0831. Pensions (continued)Contributions that were outstanding at the year end in respect of these schemes amounted to:2008 2007£000 £000NHS Pension Scheme 11 17Defined contribution pension contributions outstanding at the year end 11 1732. Consolidated cash flowGroup Group2008 2007£000 £000a) Net cash (outflow)/inflow from operating activitiesNet incoming/(outgoing) resources 786 (85,530)Adjustments to exclude investment income and non-cash itemsInvestment income (13,858) (14,103)Depreciation charge for the year 11,598 8,225Impairment of tangible fixed assets - 1,235Loss on disposal of tangible fixed assets 1,047 557Increase in negative goodwill 7,126 -Decrease in stock 258 167(Increase) in debtors (12,498) (2,852)(Decrease)/Increase in creditors (6,448) 150,905(Decrease)/Increase in provision for liabilities and charges (278) 645Adjustment for FRS 17 Pension Funding (8,353) (4,121)Net cash (outflow)/inflow from operating activities (20,620) 55,128b) Decrease in cash and short term depositsCash and short term deposits at 1 April 2007 60,259 62,184Decrease in short term deposits (31,400) (4,900)Increase in cash 21,817 2,975Decrease in cash and short term deposits (9,583) (1,925)Cash and short term deposits at 31 March 2008 50,676 60,259Cash and short term deposits at 31 March 2008 include the Charity’s share of the£16.1 million balance payable on completion of the UKCMRI site purchase, which washeld on trust by the Wellcome Trust.c) Cash outflow from charitable activities (368,451) (291,070)33. Post Balance Sheet EventsOn 15 April 2008 the purchase of Piramed Ltd by Roche was announced at a price of US$160 million with a furtherUS$15 million to follow pending successful entry into a Phase 2 clinical study. Cancer Research Technology Ltd held243,285 ordinary shares in Piramed Ltd at 31 March 2008 and is expecting to receive approximately US$2.5 million forthe sale of its equity whilst retaining a small royalty on future product sales.The first payment of US$1.9 million wasreceived in May 2008 with the balance being held in escrow and released in a number of tranches through to 2013.Subsequent to the year end, investments in The Gibb Research Fellowship Endowment Fund were liquidated, realising£1.3 million to help settle inter-group balances due to Cancer Research UK.The UKCMRI site purchase was completed in June 2008.

54 Legal and Administrative DetailsLegal and Administrative DetailsFinancial statementsThe financial statements comply with the Statement ofRecommended Practice (SORP) – Accounting andReporting by Charities as revised in 2005, the CharitiesAct (1993) and the Companies Act (1985).Charity statusCancer Research UK is registered in England and Wales asa charity, number 1089464, and as a company limited byguarantee, number 4325234.The Charity has a maximumpermitted membership of 100.There are currently 80Members, of which 17 are Trustees (pages 55 to 58). EachMember guarantees to contribute up to one pound sterling(£1) to the Charity’s debts, liabilities and costs in the eventof the Charity being wound up and for one year afterceasing to be a Member. Cancer Research UK isgoverned by its Memorandum and Articles of Association.Cancer Research UK also operates under the followingnames: Cancer Research UK Scotland, Cancer Research UKCymru, Cancer Research UK Jersey, Cancer Research UKGuernsey and Cancer Research Northern Ireland.Charity objectsThe Charity’s objects are to protect and promote thehealth of the public in particular by research into thenature, causes, diagnosis, prevention, treatment and cure ofall forms of cancer, including the development of findings ofresearch into the practical applications for the prevention,treatment and cure of cancer and in furtherance of thatprimary object, to provide information and raise publicunderstanding of such matters.Registered office61 Lincoln’s Inn Fields, London WC2A 3PXCouncilCouncil’s role is to set the Charity’s strategic direction,monitor the delivery of the Charity’s objectives, uphold itsvalues and governance, and guide, advise and support theChief Executive, who leads the Executive Board towardsachieving the Charity’s vision and purpose.The Trustees who served during the year and as at30 July 2008 are listed below along with brief biographiesof those serving as at 30 July 2008.Trustees serve on sixCouncil Committees, to which Council delegates certainauthorities to act on the Charity’s behalf in accordance withits governance policy.Their roles and responsibilities areclearly defined and each Committee regularly reviews itsactivity in line with its authority.The Chairman of Council isa member of all Council Committees except for the AuditCommittee, which he may attend. In addition, advisorygroups provide expert advice and guidance to theExecutive Board of the Charity in their relevant areas ofexpertise.Trustee membership of these Committees andadvisory groups is denoted as follows.Council committeesAC Audit CommitteeCC Chairman’s CommitteeCR Council Research Strategy CommitteeFC Finance CommitteeNG Nomination and Governance CommitteeRC Remuneration CommitteeAdvisory committeesFM Fundraising and Supporter Marketing Advisory CommitteeHR Human Resources Advisory CommitteePatronHer Majesty The QueenJoint PresidentsHRH The Duke of Gloucester KG GCVOHRH Princess Alexandra The Hon Lady Ogilvy KG GCVOTrusteesChairmanDavid Newbigging OBEDeputy ChairmanDr Melanie LeeTreasurerDr Keith Palmer

55 Cancer Research UK Annual Report and Accounts 2007/08David Newbigging OBEChairmanCC Chair NG Chair CR FC RCMr Newbigging (b 1934) was appointed Chairman inNovember 2004, having been Deputy Chairman sinceMarch 2002. He is currently Chairman of Synesis Life Ltd, aDirector of Cancer Research Technology and a Director ofWah Kwong Maritime Transport Holdings Limited in HongKong. He was Chairman of Talbot Holdings Limited until July2007 and Chairman of Friends Provident plc until May2005. He was a director of Merrill Lynch & Co Inc in NewYork from 1996 until April 2007, and was a director ofPACCAR Inc in Bellevue,Washington from 1996 to 2006.His early career was spent in Asia where he worked for30 years for the Jardine, Matheson Group of which he wasChairman and Chief Executive for nine years beforerelocating to the UK in 1984. In Hong Kong he was amember of the Executive and Legislative Councils andChairman or Director of several publicly listed companies,including being Chairman of the Hong Kong Land Companyand a Director of The Hong Kong and Shanghai BankingCorporation. Former appointments in the UK includeChairman of Rentokil Group plc, Equitas Holdings Limitedand Thistle Hotels plc. His non-business interests includebeing a Trustee of National Crimebeat. He is a formerChairman of the Wiltshire Community Foundation. He wasHigh Sheriff of Wiltshire in 2003/04 and was also Chairmanof the Council of the Mission to Seafarers from 1993 to 2006.Dr Melanie G Lee BSc DSc (Hon) FMedSciDeputy Chairman from 13.09.07ACCR FC NG RCDr Melanie Lee (b 1958) studied as a postdoctoral scientistwith the Cancer Research Campaign (CRC) and theImperial Cancer Research Fund (ICRF). She is currentlyExecutive Vice-President UCB, a leading globalbiopharmaceutical company where she is PresidentNewMedicines. Dr Lee joined the Board of Imperial CancerResearch Technology Ltd (ICRT) in 2001 and, following themerger of ICRF and CRC, played a key role in the strategicplanning of the business model for Cancer Research UK’stechnology transfer company, Cancer Research TechnologyLimited (CRT), and became its Chairman in 2003. She sitson the Scientific Advisory Board for The School ofBiological Sciences at Cambridge University, is a member ofthe Biochemistry Society and the Genetics Society, and waselected a Fellow of the Academy of Sciences in 2003.Dr Lee received an Honorary Postdoctoral Degree fromthe University of York in 2004 and is a William Pitt Fellowof Pembroke College, Cambridge.Professor Colin C Bird CBE FRSECRProfessor Bird (b 1938) is Chairman and Trustee/Directorof onCore UK. He was formerly Dean of Medicine andProvost of Medicine and Veterinary Medicine at EdinburghUniversity and Professor of Pathology at Leeds andEdinburgh universities. He has longstanding interests incancer research, both basic and clinical aspects, and hasworked on these in several universities and researchinstitutes in the UK and USA. He has served previously onthe Medical Research Council’s Research Boards andGrants Committees, the Cancer Research CampaignScientific Advisory and other Committees and variousnational NHS Advisory Committees on Cancer. He is aFellow of the Royal Colleges of Pathologists, Physicians andSurgeons and of the Academy of Medical Sciences.Professor Sir Kenneth Calman KCB DL FRSEAppointed 13.09.07CRSir Kenneth Calman (b 1941) is currently Chancellor of theUniversity of Glasgow, a member of the Board of theBritish Library, Chairman of The National Cancer ResearchInstitute, Chairman of the Glasgow Science Centre, andPresident of the Institute of Medical Ethics. He has recentlybeen appointed Chair of the Commission approved by theScottish Parliament to review devolution. He was ViceChancellor at the University of Durham for almost nineyears. While in Durham he was a member of the RegionalCommittee of the CBI and of the North East Chamber ofCommerce. Before taking up his appointment at theUniversity of Durham he was Chief Medical Officer at theScottish Home and Health Department from 1989 and theChief Medical Officer for England (1991-98). Sir Kennethalso served for many years as a prominent clinical professorand he is the author of many books on the care andtreatment of cancer and on medical education. Sir Kennethhas served as Chairman of the Executive Board of theWorld Health Organisation and the European Environmentand Health Committee. He is a Fellow of several academicand professional bodies including the Royal College ofPhysicians, the Royal College of Surgeons and the RoyalSociety of Edinburgh. In 1996 he became a KnightCommander of the Order of the Bath.

56 Legal and Administrative DetailsCouncil CommitteesAC Audit CommitteeCC Chairman’s CommitteeCR Council Research Strategy CommitteeFCNGRCFinance CommitteeNomination and Governance CommitteeRemuneration CommitteeAdvisory CommitteesFM Fundraising and Supporter MarketingAdvisory CommitteeHR Human Resources Advisory CommitteeDr Philip H M Campbell BSc MSc PhD DSc FInstP FRASCRDr Campbell (b 1951) is the Editor-in-Chief of Nature andof Nature publications. After a period of post-doctoralresearch in physics, he joined Nature in 1979, becomingPhysical Sciences editor in 1982. He left Nature in 1988 tobe the founding editor of Physics World. He is a Fellow ofthe Institute of Physics and a Fellow of the RoyalAstronomical Society. He took up his present position inDecember 1995, and is also a member of the board ofdirectors of the Nature Publishing Group. In a personalcapacity, he has advised or collaborated with the WellcomeTrust, the US National Institutes of Health, the UK Office ofScience and Technology and the European Commission onaspects of the life sciences and their impacts in society.Sir James CrosbyAppointed 31.01.08FCRCSir James (b 1956) is the Deputy Chairman of the FinancialServices Authority (FSA) (Director January 2004 topresent, Deputy Chairman since December 2007), seniorindependent director of ITV plc (formerly Granada plc,November 2002 to present) and Compass Group plc(February 2007 to present). He is also a member of theEuropean Advisory Board of Bridgepoint Capital(September 2006 to present), a member of the FinanceCommittee of the Delegacy of Oxford University Press(September 2006 to present) and Chairman of theGovernment’s Working Group on Mortgage Finance(April 2008 to present). He received a knighthood in 2006.Professor Barry JA Furr OBE FMedSci FIBiol CBiol BSc MA PhDCRNGFCProfessor Furr (b 1943) retired as Chief Scientist andHead of the Project Evaluation Group at AstraZeneca inNovember 2005, but remains a part-time consultant; he alsoconsults for a number of other companies. He has workedon cancer and reproductive biology research for over30 years and was involved in the discovery and developmentof Zoladex and Casodex used in the treatment of breastand prostate cancer. He holds an honorary chair at theUniversity of Manchester and is William Pitt Fellow atPembroke College Cambridge. He is a Fellow of theAcademy of Medical Sciences and a Fellow of the Instituteof Biology. He was awarded an OBE in the MillenniumHonours List for services to cancer drug discovery.Professor Keith Gull CBE FRS FMedSciCRRCProfessor Gull (b 1948) holds a Wellcome Trust PrincipalResearch Fellowship at the Sir William Dunn School ofPathology, University of Oxford. His research is focussed onmolecular parasitology, particularly African trypanosomiasis.He has served on numerous research committees offunding agencies and charities, has been a member of theBBSRC Council and of the Committee for Safety ofMedicines, was Chairman of the Biochemical Society(1998-2001), and is a member of the Leverhulme Trust’sResearch Awards Advisory Committee. He is a Fellow ofthe Academy of Medical Sciences and a Fellow of the RoyalSociety and was awarded a CBE in the 2004 New YearHonours list.Liz A Hewitt FCA BSc(Econ) FRSAACFCLiz Hewitt (b 1956) has been Group Director ofCorporate Affairs for Smith & Nephew plc, the globalmedical technology business, since 2004. Liz is a Fellow ofthe Institute of Chartered Accountants in England andWales, having qualified with Arthur Andersen & Co. She hasworked for ten years in the venture capital industry forGartmore Investment Limited, Citicorp Venture CapitalLimited and 3i Group plc. In 2003, Liz was seconded by 3ito the Department of Trade and Industry and HM Treasury,where she worked on an SME financing programme whichwas announced in the Chancellor’s Autumn Statement in2003. Liz’s charitable work has included non-executive roleswith the Rail Users Consultative Committee, BournewoodNHS Trust,Vice-Chairman of the Surrey Police Authorityand the Audit and Finance Committee of the Royal Societyof Arts.Dame Bridget Ogilvie AC DBE FRSCR Chair HRDame Bridget (b 1938) obtained her doctoral degreesfrom the University of Cambridge for research inparasitology. Before joining the Wellcome Trust in 1979,she was a member of the scientific staff of the NationalInstitute for Medical Research. She was Director of theWellcome Trust between 1991 and 1998. Dame Bridgetoccupies herself with a variety of non-executive roles.

57 Cancer Research UK Annual Report and Accounts 2007/08Dr Keith F PalmerFC Chair AC CR NG RCDr Palmer (b 1947) is currently Chairman of Barts andthe London NHS Trust and Trustee of the Barts and theLondon Charitable Foundation. He is also Chairman ofCambridge Economic Policy Associates and Chairman ofInfraco Ltd. He held senior positions with Rothschild from1984 to 2002 and prior to that he worked at the WorldBank and as a resident advisor to governments of PapuaNew Guinea and Tanzania. He is a part-time Professor atthe University of Dundee, a non-executive of IVIMEDS, aninternational medical education collaboration, a Trustee ofKirkhouse Trust and a Senior Associate of the King’s Fund.He is a Trustee of Imperial Cancer Research Fund.Anthony H Percival FCAAC Chair FCTony Percival (b 1940) is a Chartered Accountant and aformer Partner of PricewaterhouseCoopers. He was anExecutive Director of Kingfisher plc, having been GroupFinance Director from 1995 to 1999, and is a non-Executive Director of the Royal London UK Equity andIncome Trust plc and Gatekeeper Systems Inc. He is aDirector of Cancer Research UK Trading Limited and is aTrustee and Chairman (Designate) of Imperial CancerResearch Fund.Timothy SD PileFC FM ChairTim Pile (b 1953) is currently CEO of Cogent Elliott Group,a large Midlands-based marketing consultancy. PreviouslyTim was Chief Executive Officer of Sainsbury’s Bank, anindependent plc owned by J Sainsbury and HBOS, set up asa joint venture in 1997. From 1996 to 2001 Tim was withthe Alliance and Leicester Group as Business Strategy &Marketing Director. He worked for Lloyds TSB as MarketingDirector between 1992 and 1996 and on variousmarketing and industry bodies and is an Honorary SeniorFellow of Birmingham Business School and a Governor ofBromsgrove School. He was a Trustee of the CancerResearch UK Pension Fund until 1 April 2008.Leah J Sowden FCA CTAACLeah Sowden (b 1960) is a general practice partner inSaffery Champness, Chartered Accountants, based in theirHigh Wycombe office, offering a wide range of services tobusinesses and charities. Leah provides audit and valueadded services to her charity clients. She qualified withArmitage and Norton specialising in audit and accountancyservices. Previously, she served on the Charity’s AuditCommittee from 2002 until 2004.Sir Kenneth R Stowe GCB CVO MARC Chair HR NGSir Kenneth Stowe (b 1927) worked in central governmentuntil 1987, holding positions including Under SecretaryCabinet Office, Principal Private Secretary to successivePrime Ministers, Permanent Under Secretary of StateNorthern Ireland Office and then Permanent SecretaryHealth and Social Security. After this Sir Kenneth was anadvisor on public service reform for the UK and mainlyAfrican governments, and the UN. He was also a Trusteeof various charities including the Carnegie UK Trust,TheCancer Research Campaign and CHASE Children’sHospice. He is a Fellow of the Institute of Cancer Research(ICR) and was a Trustee and Chairman of the ICR between1987 and 1997, and a Director of the Royal MarsdenHospital. In 1998 he led the voluntary sector team innegotiating the Compact between central government andthe voluntary sector, and was its co-signatory with theHome Secretary.Professor Jeffrey Tobias MD FRCP FRCRCR FM HR NGProfessor Jeffrey Tobias (b 1946) qualified in Medicine in1971 and has been a cancer specialist for almost 30 years.Currently a consultant at UCL hospitals, with a personalChair in Cancer Medicine at UCL Medical School, hepreviously worked at the Harvard Medical School andLondon’s Hammersmith, St. Bartholomew’s, and RoyalMarsden hospitals. He trained both in medical oncologyand radiation therapy, the major non-surgical treatments forcancer. His publications include Cancer: What Every PatientNeeds to Know and Living with Cancer, both written for thegeneral public (the latter to accompany a major BBCtelevision series), as well as a large number of originalresearch papers in breast, gynaecological and head-andneckcancer. He has also written widely on ethical issues(including consent) in cancer research. For ten years hechaired the Cancer Research Campaign breast cancerstudies ‘think tank’. He also previously chaired the CancerResearch Campaign (CRC) Education Committee, theCancer Research UK Tobacco Advisory Group and waspreviously President of the British Association of Head andNeck Oncologists. He was the founding Secretary of theBritish Oncological Association and his major researchinterests are in novel treatments for breast cancer. He isMedical Advisor for the Current Medicine Group (CMG).

58 Legal and Administrative DetailsCouncil CommitteesAC Audit CommitteeCC Chairman’s CommitteeCR Council Research Strategy CommitteeFCNGRCFinance CommitteeNomination and Governance CommitteeRemuneration CommitteeAdvisory CommitteesFM Fundraising and Supporter MarketingAdvisory CommitteeHR Human Resources Advisory CommitteeDr Harold Varmus MDCRHarold Varmus (b 1939), former Director of the NationalInstitutes of Health and co-recipient of a Nobel Prize forstudies of the genetic basis of cancer, has served as thePresident and Chief Executive Officer of MemorialSloan-Kettering Cancer Center in New York City sinceJanuary 2000. Much of Dr Varmus’ scientific work wasconducted during 23 years as a faculty member at theUniversity of California, San Francisco, where he andDr J. Michael Bishop and their co-workers demonstrated thecellular origins of the oncogene of a chicken retrovirus.Thisdiscovery led to the isolation of many cellular genes thatnormally control growth and development and arefrequently mutated in human cancer. For this work, Bishopand Varmus received many awards, including the 1989Nobel Prize in Physiology or Medicine. Dr Varmus is alsowidely recognised for his studies of the replication cycles ofretroviruses and hepatitis B viruses, the functions of genesimplicated in cancer, and the development of mousemodels for human cancer (the focus of much of thecurrent work in his laboratory at Memorial Sloan-KetteringCancer Center). In 1993,Varmus was named by PresidentClinton to serve as the Director of the National Institutesof Health, a position he held until the end of 1999. Heserved on the World Health Organisation’s Commission onMacroeconomics and Health, chairs the Board of Directorsof the Public Library of Science and the Scientific Board ofthe Grand Challenges in Global Health, and works withseveral groups to enhance scientific activity in the developingworld. He has been a member of the US NationalAcademy of Sciences since 1984 and of the Institute ofMedicine since 1991. In 1982 he was awarded the AlbertLasker Basic Medical Research Award, in 2001 the VannevarBush Award, National Science Foundation, and also in 2001he was awarded the National Medal of Science. A native ofFreeport, Long Island, Dr Varmus majored in EnglishLiterature at Amherst College and earned a Mastersdegree in English at Harvard University. He is a graduate ofColumbia University’s College of Physicians and Surgeons.Trustees who retired during the yearProfessor Sir David C Carter MD FRCS(Ed) FRSE(retired 13.09.07)Baroness Cumberlege CBE DL(retired 31.12.07)Dr Brendan O’Neill MA FCMA(retired 13.09.07)Dr Carole Rawlinson(retired 31.12.07)Professor Dame Nancy J Rothwell(retired 30.04.08)The Executive Directors who were members of theExecutive Board on 30 July 2008 were as follows:Chief Executive Officer and Chairman of theExecutive BoardHarpal Kumar MA MEng MBAHarpal joined Cancer Research Technology Limited (CRT)as Chief Executive in October 2002 to drive forward theCharity’s technology transfer and early drug discoveryactivities. In addition to his role with CRT, he became ChiefOperating Officer of the Charity in July 2004, responsiblefor strategic direction and day-to-day operationalmanagement, before becoming Chief Executive in April2007. Following his training as a chemical engineer, Harpalwas a healthcare consultant with McKinsey and Co. In 1992,he became Chief Executive of the Papworth Trust, aspecialist charity working on rehabilitation of disabledpeople. From 1997, he founded and was Chief Executive ofNexan Group, a medical device company specializing incardio-respiratory monitoring, before joining CRT. Harpal isChairman of the Beatson Institute for Cancer Research andis a Trustee of the Institute for Cancer Research. He alsoserves on the Boards of the National Cancer ResearchInstitute, the UK Clinical Research Collaboration, and theNHS Innovation Council.Executive BoardLilian Clark PhD MBAExecutive Director, Science Operations and FundingLilian was appointed Executive Director, Science Operationsand Funding in August 2007. She came to Cancer Research UKfrom Cold Spring Harbor Laboratory, where she was Deanof the Watson School of Biological Sciences, and ExecutiveDirector of Research Operations. As Executive Director,Science Operations and Funding, Lilian is responsible for alarge proportion of Cancer Research UK’s science funding,ensuring that assessment of applications is carried outobjectively and impartially, and that the research we fund isregularly peer reviewed.This includes research both atcore-funded institutes as well as grant-funded research.Lilian is also responsible for Research Services.Professor Peter Johnson MA MD FRCPChief ClinicianPeter has been Chief Clinician for Cancer Research UKsince January 2008. He has responsibility for the strategyand shape of the Charity’s clinical activities, both in clinicalresearch and in the wider context of cancer prevention,diagnosis and treatment. His main research interests are inimmunology, particularly the use of novel antibody treatments,and in lymphoma, where he is responsible for severalnational and international trials and is Chair of the NationalCancer Research Institute (NCRI) Lymphoma ClinicalStudies Group.

59 Cancer Research UK Annual Report and Accounts 2007/08Professor Sir David Lane FRS FRSEChief ScientistDavid is the Chief Scientist of Cancer Research UK. He isthe Director of the Cancer Research UK TransformationResearch Group at the University of Dundee and Chair ofSingapore’s Biomedical Research Council. Sir David set uphis own laboratory with Cancer Research Campaign (CRC)funding at Imperial College, London, then moved to theImperial Cancer Research Fund laboratories at Clare Hallbefore moving in 1990 to Dundee to help establish the CRClaboratories there. He is best known for his discovery ofthe p53 protein while working as a Post Doctoral Fellow atthe Imperial Cancer Research Fund Laboratories at LincolnsInn Fields. In 1996 Sir David founded Cyclacel PharmaceuticalsLimited, now a Nasdaq-listed biotechnology company.Christine Lloyd BSc MA ACIS MIPD FRSAExecutive Director, People and Organisational DevelopmentChristine is Executive Director, People and OrganisationDevelopment. Before joining Cancer Research UK in May2005, Christine worked for Nokia as the Global VicePresident of Organisation Development where she focusedon business development and culture change. During hercareer, Christine has worked in a range of industry sectorsand functional areas including Leadership Development,Human Resource Management, Organisational Change andSystems Development.Sarah Lyness MAExecutive Director, Communications and InformationSarah joined Imperial Cancer Research Fund in 1997 and,at merger, developed and launched the Cancer Research UKbrand, building it to be the strongest and most loved UKcharity brand. She is responsible for informing and engagingwith external audiences about cancer and the work ofCancer Research UK.This includes shaping and promotingthe brand, the Charity’s media and internet presence, aswell as providing information services to patients and thepublic on cancer.Professor Herbie Newell MIBiol PhDInterim Executive Director, Clinical and TranslationalResearch and Research StrategyHerbie was appointed Director of Translational Researchat Cancer Research UK in 2006 and Interim ExecutiveDirector, Clinical and Translational Research and ResearchStrategy (CTRARS) in 2007. He is Professor of CancerTherapeutics at the University of Newcastle upon Tyne, andpast Chairman of the British Association for CancerResearch and the Laboratory Research Division of theEuropean Organisation for Research and Treatment ofCancer (EORTC). Professor Newell was involved in thedevelopment of the licensed agents carboplatin (Paraplatin)and raltitrexed (Tomudex) and is currently working on thedevelopment of molecularly-targeted anti-cancer drugs.Lynne RobbChief Financial Officer and Executive Director,Corporate ResourcesLynne joined Cancer Research UK as Finance Directorduring its merger in 2002. Soon after joining she wasappointed Executive Director Finance and over the last sixyears she has seen her role expand to Chief FinancialOfficer and Executive Director of Corporate Resources,which includes IS, Risk Management, Legal, PropertyServices, Finance,Treasury and Procurement for the wholeorganisation. She qualified as a chartered accountant in1989 with Arthur Andersen & Co., after which she movedto Tate & Lyle Plc in their Group Finance team. Her careerexpanded over 13 years, being Finance Director of theirsugar and molasses trading divisions and spending her lasttwo years there as Integration Director, reporting directlyto the CEO.Richard C TaylorExecutive Director, Fundraising and Supporter MarketingRichard joined Imperial Cancer Research Fund in April1998 as Retail Director following a career in commercialretail including Boots the Chemist, Burton menswear andthe Early Learning Centre where he was responsible for allstores in the UK and Europe. Richard was appointed to hiscurrent position in 2007 following three years as Co-Director of Fundraising and Marketing. He is responsiblefor the five-year fundraising strategy which drives incometo support the Charity’s long term ambitions. Within hiscurrent responsibility he oversees 45,000 volunteers,500 shops, 1,000 voluntary committees, a fundraisingprogramme with 6 million registered supporters and afundraising team of 2,100 staff. Externally, Richard is aTrustee for two other charities: Willows Counselling Serviceand the Neurofibromatosis Association.Company SecretaryRosanna Roughley LLB SolicitorBankersRoyal Bank of Scotland, Aldwych Branch,Connaught House, 65 Aldwych, London WC2B 4EJLloyds TSB Bank plc, Pall Mall St James’s,8/10 Waterloo Place, London SW1Y 4BEAuditorsPricewaterhouseCoopers LLP,80 Strand, London WC2R 0AFSolicitorsWithers LLP, 16 Old Bailey, London EC4M 7EG

60How to find out moreOur websitesYou can reach all of our websites through our homepagewww.cancerresearchuk.orgAbout uswww.cancerresearchuk.org/aboutus provides informationabout the Charity’s vision and purpose, how we work andsome of our key successes and achievements.You can alsofind out more about our ambitious goals for 2020. In addition,you can access electronic versions of our Annual Review,Annual Report and Accounts and Scientific Yearbook.CancerHelp UKwww.cancerhelp.org.uk is our award-winning patientinformation website. It provides a wealth of informationon diagnosis, treatment and issues related to living withcancer for anyone affected in the UK. It also has a uniqueclinical trials database providing online information aboutUK clinical trials, written in plain English specifically forpeople affected by cancer.Support uswww.cancerresearchuk.org/supportus shows the manyways in which you can support our life-saving work by givingyour time or money. It also provides full listings of all the funand exciting events taking place in your area.By telephoneIf you would like to get involved in supportingCancer Research UK’s fundraising activities in your localarea, you can call 08701 602 040 to be put through toyour nearest regional fundraising office.If you have any questions about Cancer Research UK, orwould like to support our work by making a donation,please call our Supporter Services team on 020 7121 6699.Grants and researchhttp://science.cancerresearchuk.org provides information,primarily for researchers, about our work and gives detailsof how to apply for funding. It also provides access toannual reports from each of our core-funded researchinstitutes, and profiles of many Cancer Research UK-fundedscientists and their key publications.News and resourceshttp://info.cancerresearchuk.org provides up-to-dateinformation for anyone with a general or professionalinterest in cancer and health. Areas covered includeCancer Research UK’s cancer news service and analysisand interpretation of UK cancer statistics. It featuresinformation on cancer prevention, healthy lifestyles,screening and early detection as well as highlights fromour research portfolio.The website has a dedicated sectionfor teachers and students with National Curriculum-linkedcontent about cancer and health. In addition, all our healthawareness and statistics publications are available todownload free of charge.Our Cancer Information NurseTeam is available to provideinformation to anyone affectedby cancer. You can contact theteam by calling their freephonenumber on 0808 800 4040.Our annual publications are available to download as aPDF at www.cancerresearchuk.org/aboutus/whoweare/ourreportsandaccounts/

Cancer Research UKRegistered address:61 Lincoln’s Inn FieldsLondon WC2A 3PXTelephone +44(0)20 7242 0200www.cancerresearchuk.orgRegistered charity number 1089464Registered company number 4325234Copyright © 2008 Cancer Research UKLF014