Annual Report and Accounts 2011/12 - Cancer Research UK

Trustees’ report | About usCancer Research UKundertakes pioneering,life-saving researchto bring forward the daywhen all cancers are cured.Every two minutessomeone is diagnosedwith cancer. With the helpof our supporters we canaccelerate our impacton this devastating disease.Trustees’ reportAbout us 1Chairman’s statement 2Chief Executive’s statement 3Progress against our 2011/12 objectivesOur life-saving research 4Helping people to prevent and understand cancer 7Influencing public policy and campaigning for change 7Some of our objectives for 2012/13Our life-saving work to prevent, treat and cure cancer 8Our finances 10Our governance, structure and management 15Statement of Trustees’ responsibilities 21Financial statementsIndependent Auditors’ Report 22Consolidated Statement of Financial Activities 23Balance Sheets 24Consolidated Cash Flow Statement 25Notes to the Accounts 26Legal and administrative details 54Find out more and get involved 55Financial highlights£493 millionTotal income was £493 million,up 2% on 2010/11.£332 millionAnnual research activity was£332 million, in line with 2010/11.80% of every £1 donated to uswas available to beat cancer80%20%80% of donations were availableto beat cancer.We invest 20% to raise futurefunds. For every £1 we spenton fundraising we raised over£4 more.

Annual Report and Accounts 2011/12 | 1About usCancer is the UK’s biggest killer.As the population grows and ages,the number of people diagnosed withthe disease in the UK is predictedto rise steeply – to around 432,000cases by 2030.More than 1 in 3people will developcancer at some pointduring their lifetimeDespite this, more people arebeating cancer than ever before.Survival rates for leukaemia havequadrupled. And people withbreast, bowel, and ovarian cancersand non-Hodgkin lymphoma aretwice as likely to survive for at least10 years as those diagnosed in theearly 1970s.Cancer survival inthe UK has doubledover the last 40 yearsResearch highlightsOur scientists, doctors and nursescontinue to bring new and bettertreatments to people with cancer.They have contributed to someof the world’s most importantcancer drugs, including tamoxifenand Herceptin to treat breastcancer and temozolomide to treatbrain tumours. And thanks to theirpioneering work, thousands ofpeople benefit from radiotherapyevery year in the UK.We have helped millionsunderstand the disease, such asthe links between lifestyle choicesand cancer risk.Together with our supporterswe helped secure smoke-freelegislation across the UK and a banon sunbeds in England and Walesfor under-18s. Both laws protectpeople from preventable causesof cancer.Diagnosing cancer earlier, when itcan be treated more effectively,could save thousands of lives everyyear in the UK.Our research laid the foundationsfor the UK’s national screeningprogrammes. Our scientistsshowed that a new screeningtest called ‘flexi sig’ can preventmany people from developingbowel cancer.New technologies and the paceof discovery are leading us towardspersonalised medicine that willreduce side effects and help morepeople survive.Our vision is to bring forwardthe day when all cancers arecured. But with over 200 differenttypes of cancer there’s still muchmore we need to do.Around 40,000volunteers give up theirtime to support usOur achievements are madepossible thanks to our volunteersand supporters. Together we willbeat cancer.Three new cancer drugs,based on our research, reachedpatients. Abiraterone for advancedprostate cancer, and vismodegib andvemurafenib for different forms ofskin cancer.Our scientists identified tennew sub-types of breastcancer, which will change the waythe disease is treated in the future.We published the mostcomprehensive study oflinks between lifestyle choicesand cancer in the UK.We played a major role inbanning cigarette displays inshops as well as tobacco vendingmachines.For more on these storiessee our Annual Review 2011/12aboutus.cancerresearchuk.org/our-annual-publicationsOur InstitutesOur CentresJust some of the locationswhere we fund researchand support clinical trialscancerresearchuk.org

2 | Trustees’ report | StatementsChairman’s statementMichael PragnellChairman30 May 2012As the leading independent cancer research organisation,Cancer Research UK invests more in almost every typeof cancer than any other research organisation outsideNorth America. We fund over half the UK’s cancerresearch through the Charity’s institutes and all leadingUK academic and clinical institutions, supporting morethan 4,000 world-class scientists and clinicians.The success of this endeavour is made possible thanksto the many thousands of donors and volunteers whogive so generously each year to support our work andto whom we are hugely grateful.More people are surviving cancer than ever before.Yet cancer is now the major cause of premature deathin the UK: more than one in three people are at risk ofdeveloping cancer and this is expected to increase overthe next decade, not just in the UK but worldwide.Progress against cancer is advancing at an unprecedentedpace, thanks to acceleration in many fields, not leastthe rapid development of genetic science and technologies– an immense opportunity for cancer research.Our Stratified Medicine Programme and our role in theInternational Cancer Genome Consortium launchedduring the year further reinforce the Charity’s researchprogress towards personalised medicine. Investmentin clinical and translational research, medical imagingand radiotherapy continues to increase. The year wasalso marked by a number of treatment breakthroughs,and you can read the highlights elsewhere in this report.Prevention and early diagnosis remain priorities.Among the many achievements of the year wasa landmark UK study which concluded that over40% of cancers are preventable through the controlof lifestyle factors including smoking, diet, alcoholand obesity. Our political outreach seeks to influencepublic policy and is aimed in particular at furtherreducing smoking – the largest single preventablecause of a number of cancers.Construction of The Francis Crick Institute, conceived asa world-leading biomedical research institute and enjoyingstrong government support, began in June 2011. It ison schedule for completion by 2015. We are delightedthat Charles Manby of Goldman Sachs International hasagreed to chair the campaign board to raise the Charity’sshare of the £650 million capital cost.In the current circumstances of economic austerity,it is encouraging to report that last year’s fundraisingincome was broadly unchanged, with a slight increasein total income. The Charity maintained research activityat the same level as the prior year while addressingnew research opportunities. Capital expenditure andpayments towards The Crick Institute resulted ina small reduction in year-end cash and reserves.Four new Trustees were welcomed to Council duringthe year: Anne Baldock, a recently retired partner atAllen and Overy LLP; Wendy Becker, former partnerat McKinsey & Company and non-executive directorat Whitbread plc and Ocado plc; Helen Calcraft,Chairman of Dare; Dr Adrian Crellin, Vice-Presidentof the Royal College of Radiologists.In September 2011 Liz Hewitt, Dr Keith Palmer andLeah Sowden stepped down from Council, and inMarch 2012 Professors Colin Bird and Jeffrey Tobiasalso retired as Trustees. I should like to extendwarmest thanks and appreciation to each and all fortheir distinguished service and invaluable contributionsto the progress of the Charity over many years.With an uncertain economic outlook, I am impressedby the positive response of Cancer Research UK’sleadership to economic challenges and equally bytheir determined exploitation of scientific opportunity.The outlook for cancer research has rarely beenmore exciting.

Annual Report and Accounts 2011/12 | 3Chief Executive’s statementHarpal S KumarChief Executive30 May 2012We are living in a golden age for cancer research.More people are beating cancer than ever before.The pace of progress is unprecedented. Thanks tophenomenal advances in treatments and technologies,survival rates will continue to improve year on year.However, there are significant challenges ahead.Thanks to our supporters Cancer Research UK is makinga profound impact on how we prevent, detect and treatcancer. But our progress is limited by the funds we haveavailable. There’s much more that we’d like to do – withincreased support, we could save more lives sooner.Our life-saving researchIt’s been an exciting year for the Charity. Our researchinto the genetic faults at the heart of cancer continues toreveal important insights. A landmark study revealed a newway to classify breast cancer based on a tumour’s geneticfingerprint. Our scientists also revealed the complexity ofgene faults that drive kidney cancer. This research showedthat personalising treatment will be more difficult thanexpected, but offered important pointers to how weneed to approach this challenge.Three new cancer drugs, based on our pioneeringresearch, reached patients this year. One of these,abiraterone, is used to treat advanced prostate cancer,whilst the other two, vismodegib and vemurafenib,treat different forms of skin cancer.To nurture future drug development and take potentialtreatments from discovery into early trials, we havecreated the Cancer Research Technology ‘Pioneer Fund’jointly with the European Investment Fund to provideinvestment for promising new approaches.We’re dedicated to helping more people survivehard-to-treat or rare cancers. We launched a trialof a new test called ‘Cytosponge’, which aims to detectthe early signs of oesophageal cancer and help preventthe disease in those most at risk. This disease is oftendiagnosed late, when treatment is less likely to besuccessful. And to boost treatment options for patientswith very rare cancers we formed the International RareCancers Initiative with groups from the UK, Europeand America to design and fund vital new clinical trials.Detecting and diagnosing cancer as early as possibleThousands of lives could be saved each year if cancerwas diagnosed earlier. That’s why we co-lead the NationalAwareness and Early Diagnosis Initiative and why we’vesupported the Department of Health’s ‘Be Clear onCancer’ campaigns, which raise public awareness ofhow to spot cancer and the importance of reportingsymptoms promptly.Giving health professionals the information and supportthey need is essential in our fight against cancer.Working with partners such as the Royal College ofGeneral Practitioners and doctors.net.uk, we’re equippingGPs with the tools they need to save more lives bydiagnosing more cancers earlier.Campaigning and influencingOur ‘Voice for Radiotherapy’ campaign raised awarenessabout the importance of radiotherapy for cancer patients.At the end of the campaign the Government announcedthat, by 2016, cancer patients in England will be able toreceive a type of radiotherapy called proton beam therapy.We’ll continue to lobby the Government to ensure thelatest radiotherapy techniques are made available topatients across the UK.We’re also calling on the Government to remove glitzybranding from cigarette packets so that children are lesslikely to be seduced by sophisticated marketing techniques.Smoking is the single biggest preventable cause of cancerin the world, and it’s vital we give millions of young peopleone less reason to start.Thank youI’d like to thank every one of our supporters, scientists,clinicians, nurses, employees and volunteers. It’s yourdedication and unfailing generosity that make our life-savingwork possible. We have a great deal more to do, buttogether we are making our vision of beating cancer a reality.cancerresearchuk.org

4 | Trustees’ report | Progress against our 2011/12 objectivesProgress against our 2011/12 objectivesOur life-saving research01 Through its collaborativeapproach to science,The Francis Crick Institutewill make a step-change incancer research.Continue to createenvironments whereworld-leading researcherscan collaborate tomake faster advancesin cancer researchThe Francis Crick Institute ison schedule to open in 2015.The institute will bring togetherthe very best scientists fromaround the world, working tounderstand and beat diseasesthat affect everyone, includingcancer, heart disease and stroke.To help us fund our £160 millioncontribution to the institute,we launched a fundraising campaigncalled ‘Create the Change’.We are securing donations fromphilanthropists and foundationsin the UK and internationally.In October 2011 King’s CollegeLondon and Imperial CollegeLondon joined the partnership.Together with partnersThe Christie and The Universityof Manchester, we have launcheda campaign to raise funds for anew Manchester Cancer ResearchCentre building. This will providebetter opportunities and facilitiesfor researchers and clinicians towork together to develop newtreatments for cancer patients.This ‘super-laboratory’ willbring together world-classscientists from fields asdiverse as structural biologyand genetics, mathematicsand computing. Using thelatest technology, scientistswill exploit our understandingof human biology, leading tonew treatments for the mostsignificant diseases affectingpeople today.Being part of the institute willaccelerate our goal to beatcancer and keep the UK atthe forefront of innovation inmedical research. Discoveriesmade here will become thecures, vaccines and drugs ofthe future, transforming thehealthcare of generationsto come.crick.ac.ukOur London Research Institute,Cambridge Research Institute,and The Cancer Research UK –MRC Gray Institute for RadiationOncology and Biology in Oxfordhad successful quinquennial reviews,receiving commendations on theexcellence of their research. Theseinstitutes continue to contributegreatly to our understandingof cancer and translate this intopatient benefit.02Continue to developthe next generationof world-classcancer researchersIn 2011/12 we launched two newCancer Research UK Centres,bringing the total to 18 acrossthe UK.The Centres have their own trainingbudget to equip scientists anddoctors with the skills to becomethe next generation of internationalresearch leaders.We committed £1.2 million overthree years for a new initiative insurgical research – creating eightpost-doctoral training positions atour Centres in Oxford, Cambridge,Southampton, University CollegeLondon and Imperial College London.These posts allow PhD surgeons toremain in research while completingtheir training. The first trainees havebeen appointed.

Annual Report and Accounts 2011/12 | 503 04Drive forward researchinto cancer genomics,as part of our strategyto deliver better, tailoredtreatments to patientsOur Stratified MedicineProgramme will lay thefoundations for personalisedcancer treatment. It’s thefirst step towards doctorsbeing able to select the righttreatment for each patientbased on the genetic make-upof their individual tumour.Fund more research intopancreatic cancer and othercancers that are hard totreat successfully, aimingto improve survival ratesWe funded nine new projects usingstate-of-the-art gene sequencingtechnology. They will cover eightcancer types, including a fatalchildhood cancer and other hard-totreatcancers such as melanoma.As part of the International CancerGenome Consortium, we launchedtwo pilot projects to identify thegenetic faults in prostate andoesophageal cancer. The pilot studieswere successfully reviewed and fullprojects will begin in 2012/13.Over a thousand patients havevolunteered to be part of ourpioneering Stratified MedicineProgramme, aiming to demonstratehow affordable genetic tests couldbe used within the NHS to improvecancer diagnosis and match the mostappropriate treatment to individualcancer patients.This involves seven ExperimentalCancer Medicine Centres (ECMCs),some 20 UK hospitals, and a strongpartnership with the Government’sTechnology Strategy Board andindustry.To make this happen weneed to develop tests thatidentify genetic changes incancer and make them aroutine part of treatmentselection. An essential partof this will be establishinga research database withinformation about tumours,treatments and survival rates,helping researchers designmore effective cancer testsand treatments in the future.The programme focuses on bowel,breast, lung, prostate and ovariancancer and melanoma in the pilotphase.The Department of Health is alreadyworking with us to prepare for theroll-out of genetic tests throughoutthe NHS.We funded a project to usestate-of-the-art gene sequencingtechnology to analyse a uniquecollection of samples from patientson several large European pancreaticcancer treatment trials. The projectaims to understand individualdifferences in the way patientsrespond to treatment.We are assessing a new clinical trialfor patients with pancreatic cancer,and have supported a new trial inoesophageal cancer and two newtrials in lung cancer.We have launched an InternationalRare Cancers Initiative with researchgroups from the UK, Europe andthe US.The initiative will design andfund clinical trials to boost thedevelopment of new treatmentsfor patients with rare cancers.To begin with, it will focus onseven diseases including salivarygland cancer, melanoma of theeye, penile cancer and rare typesof bowel and womb cancer.cancerresearchuk.org

6 | Trustees’ report | Progress against our 2011/12 objectivesProgress against our 2011/12 objectives (continued)Our life-saving research05 Our unique network ofECMCs focuses on runningearly stage trials thatbridge the gap betweenlab discoveries and newtreatments across the UK.Enhance our clinical andtranslational researchso that discoveries aretranslated into newdiagnostic tests andtreatments for patientsas quickly as possibleWe launched a new scheme toprovide five-year grants in clinicaland translational research. Fourprogrammes have been funded,two in radiotherapy and two thatwill investigate new types of tests(biomarkers) for use in treatmentand early diagnosis.A panel of international expertsreviewed our Experimental CancerMedicine Centres (ECMCs). As aresult, together with the UK HealthDepartments, we will continueto fund a network of 18 ECMCsacross the UK, investing a total of£35 million over the next five years.These centres will bring newmedicines or ways of diagnosingcancer to the clinic more rapidlyand maintain the UK’s positionas a world leader in experimentalcancer medicine.A joint initiative betweenCancer Research UK andthe Departments of Healthfor England, Scotland, Walesand Northern Ireland, eachECMC unites world-classresearchers and clinicians.They share ideas andresources to drive forwardthe discovery, developmentand testing of new anti-cancertreatments and tests tobenefit patients.ecmcnetwork.org.uk06Continue to ensure thatadvances in radiotherapybenefit patients and thatthe UK remains a worldleader in this fieldThe Cancer Research UK – MRCGray Institute for RadiationOncology and Biology was reviewedin June 2011. This confirmed theworld-class quality of the institute,which was established in Oxfordin 2008 and has grown to becomethe largest centre for radiobiologyresearch in the world.Six Cancer Research UK Centres –Belfast, Liverpool, UCL, Manchester,Oxford and The Institute of CancerResearch – specialise in research intoradiotherapy, to refine and improvethis important treatment.We supported three new trialswith a specific focus on improvingradiotherapy, and are continuingour funding for a national initiativethat encourages new research intoradiotherapy.Our researchers also publisheda major trial demonstrating thebenefit of intensity modulatedradiotherapy, which deliversradiation more precisely to thetumour, for patients with headand neck cancer.For more informationon our research visitaboutus.cancerresearchuk.org/research

Annual Report and Accounts 2011/12 | 7Helping people to prevent and understand cancer01 02Continue our work to preventcancer and make sure it is diagnosedearlier, when treatment is morelikely to be successfulWe manage the InternationalCancer Benchmarking Partnership,which investigates how and whycancer survival differs betweencountries. This year the groupexamined variation in stage atdiagnosis and access to treatmentand their impact on survival.We started an educationalprogramme for GPs withdoctors.net.uk, focusing on boweland lung cancers to improve GPs’ability to spot cancer symptomsand make appropriate referrals.We assisted the Department ofHealth (DH) on their ‘Be Clearon Cancer’ campaigns to raiseawareness of possible signs orsymptoms and the importanceof prompt reporting. We’re alsosupporting the DH to developcancer awareness resources forprimary care and pharmacy staffat local, regional and national levels.Our Cancer Awareness Roadshowsreceived their 200,000th visitor.Playing a vital role in helping peopleto spot cancer early and reducecancer risk, our mobile units visitedover 150 locations. We also trainedaround 200 health workers,pharmacists and local communityworkers in cancer awareness.Continue to improve ourinformation about cancer so thatpeople understand their diagnosisand can make informed decisionsabout treatment optionsWe launched a mobile versionof our patient information website,CancerHelp UK, now used byover 100,000 visitors a month.Our nurses answered 10,000enquiries and ran Q&A sessionson our patient discussion forumCancer Chat.For more on our preventionand information work visitaboutus.cancerresearchuk.org/informationInfluencing public policy and campaigning for change01Work with politicians toimprove access to chemotherapy,radiotherapy and surgery andensure new treatments areadopted quickly within the NHS36,000 people supported our‘Voice for Radiotherapy’ campaign,calling on the Government tointroduce better radiotherapyservices. The Government announcedthat proton beam therapy willbe available in England by 2016.We secured amendments tothe Health and Social Care Billas it went through Parliament toensure the NHS protects cancerservices and remains supportiveof cancer research.cancerresearchuk.orgWe influenced the Government’sPublic Health Outcomes Framework,which will monitor how localhealthcare services perform toincrease life expectancy and reducedifferences between communities.The framework now measures theproportion of cancers diagnosed earlyand cancer mortality rates to identifywhere action needs to be taken.02Work with politicians to protectour world-leading science baseand create the best possibleenvironment for researchWe lobbied the Government toensure essential approvals neededto carry out clinical research aremanaged by the Health ResearchAuthority, to streamline the process.We launched a report at theEuropean Parliament outlining theimprovements we want to see tothe EU Clinical Trials Directive tostop delays to trials and reduceset-up costs.Our report ‘Building the idealenvironment for medical research’outlined our priorities forGovernment policy changes thatwill improve cancer research.For more information onour influencing work visitaboutus.cancerresearchuk.org/influencing-public-policy

8 | Trustees’ report | Some of our objectives for 2012/13Some of our objectives for 2012/13Our life-saving work to prevent, treat and cure cancer01 02 03Promote cancer preventionand early diagnosis andinform the public by:Developing an enhanced researchstrategy in these areas, includingan evaluation of research supportedby the National Awareness andEarly Diagnosis Initiative.Funding new research investigatingthe use of aspirin in preventingcancer.Campaigning for the plain packagingof tobacco, which we believe willsave lives by dissuading young peoplefrom taking up smoking.Raising public awareness of thebenefits of detecting cancer earlyby providing information on signsand symptoms and tackling thefear of cancer.Developing a comprehensiveprogramme of GP engagement,providing them with high qualityinformation and support topromote early diagnosis andimprove survival rates.Publishing an independent reviewof breast screening, which will clarifythe benefits and risks and betterinform women in the future.Create environmentsthat will lead to fasterprogress in the fightagainst cancer by:Continuing to develop The FrancisCrick Institute with our partners.We will contribute to the institute’sscience strategy and plan for thetransfer of scientists from ourLondon Research Institute. And wewill continue to raise funds for theinstitute through our ‘Create theChange’ campaign.Working with The Christie Hospitaland The University of Manchesterto raise funds for a new ManchesterCancer Research Centre building,to increase collaborative workingbetween research and clinical staff.Monitoring cancer services duringNHS reform, calling for world-classcare for patients.Lobbying the government to ensureit protects and funds medical researchin the UK.Building our policy influence locally,including providing regional cancerstatistics for MPs and healthcommissioners.Drive forward researchthat will lead to new waysof tackling cancer andhelp deliver our vision formore effective, tailoredtreatments to patients by:Completing collection and analysisof the unique genetic signaturesof 9,000 patient tumour samplesas part of our Stratified MedicineProgramme. We will make thegenetic and clinical data availableto scientists to help with newlife-saving research.Building on the success of our pilotprojects, we will fully launch twoInternational Cancer GenomeConsortium projects – to pinpointthe genetic faults in prostate andoesophageal cancer and identifynew tests and treatments forthese diseases.Continuing to fund research thatwill unravel the complexity ofcancer, including our genomicsprojects, which are expectedto produce their first results.Continuing to support a wideportfolio of research, includinga budget of £70 million to fundnew awards during the year.

Annual Report and Accounts 2011/12 | 904Accelerate the translation oflaboratory research into newtreatments for cancer by:Bringing together morepharmaceutical partners to enableour scientists to test combinationsof new cancer drugs in earlyclinical trials.Improving and increasing the sharingof expertise and resources betweenour Experimental Cancer MedicineCentres, which run early-phase trialsof new treatments at hospitalsacross the UK.Increasing investment to bridgethe gap between drug discoveryand development through a newCancer Research TechnologyPioneer Fund – a joint initiativewith the European Investment Fund.Developing a new strategy for ourdrug discovery work.05Support a broad rangeof clinical research that willdeliver better treatmentsfor patients by:Continuing to fund high qualityresearch to improve surgery andradiotherapy.Making sure our clinical trials havethe maximum impact by prioritisinginnovative trials that include researchinto biomarkers – tests that helpdoctors monitor how cancer isdeveloping or whether a treatmentis working.Asking a panel of internationalexperts to judge the quality ofall our Clinical Trials Units acrossthe country.Lobbying the Government tostreamline regulation and governancein support of clinical research.06Boost research into rareor hard-to-treat cancersto deliver urgently needednew treatments and tacklepoor survival rates by:Running a lung cancer workshopwith an international group ofexperts, to increase collaborationand stimulate research aimingto improve survival rates forthis disease.Building on our rare cancersinitiative, by recruiting the firstpatients into clinical trials andfinding new partners to jointhis collaboration. The initiativeencourages doctors all overthe world to work togetheron clinical trials for cancers thataffect small numbers of people.cancerresearchuk.org

10 | Trustees’ report | Our financesOur financesFinancial summary2012 2011 Change£’m £’m %Total income 493 483 +2Fundraising income 432 433 –Annual research activity 332 332 –Total funds 181 186 -3Managed cashand investments 182 206 -12Although the UK economy has stagnated in the periodand fundraising competition has continued to intensify,we are pleased to report a 2% increase in total incometo £493 million.The economic outlook remains challenging, and wecontinue to place particular emphasis on long-termfinancial planning. We maintain a prudent level ofreserves to enable us to manage through economicand financial uncertainty while still delivering on ourresearch commitments, including our contributionto the construction of The Francis Crick Institute.Our income and reserves enabled us to maintain ourannual research activity at £332 million, in line withthe previous year. Our year-end financial position (totalfunds of £181 million and managed cash and investmentsof £182 million) provides a sound platform from whichwe can continue to meet our commitments.Fundraising income and costsIncome from fundraising was £432 million – in line withthe previous year (2011: £433 million). A reductionin legacy income, reflecting lower notifications andaverage values, was offset by increased income fromour high-value donors. Sustaining the fundraising weneed to finance our life-saving work remains a challengein the current giving market, and requires continuedsupport. We reduced the costs of generating fundsto £149 million (2011: £151 million), a 6% decrease inreal terms. In particular, our continued focus on drivingefficiencies and optimising costs has enabled reductionsin overhead costs during the year. As a result, despiteflat income and continued investment in technologyto support fundraising, 80% of every £1 donated wasavailable to beat cancer (2011: 80%).Costs of charitable activitiesOur research is carried out in many institutes,universities and hospitals across the UK, bothby our in-house and grant-funded researchers– in many cases working closely together.Research costs and how we report grantsMany of our research grants are awarded for severalyears and may then be renewed to support the nextstage in the research process. In all areas we carry outthe same rigorous process of review and evaluation toensure our funds are allocated to research of the higheststandard. Committees of international experts in eachresearch field review funding applications, including therenewal of existing awards, and monitor the quality ofresearch programmes.Some 50% of our research is carried out at third-partyinstitutions which are grant-funded by the Charity.Research expenditure included in the Statement ofFinancial Activities on page 23 continues to reflect therequirement to account for our research grants touniversities and hospitals at the time we make an award.The remaining 50% of our research is carried out throughdirectly funded activities, where research work isaccounted for in line with activity in the year. Together,grants and directly funded work make up ‘costs ofresearch’ in the financial statements. The total for theyear was up 2% at £332 million (2011: £325 million).The way that we account for grants affects the reportedcost of research. We set scientific milestone review datesfor each type of research grant. These reviews are timedso that the progress of each grant can be properlyassessed. We account for each grant by providing inadvance for all expected payments up to the nextscientific review.As an example, most five-year programme grants arerecognised in two tranches – one of three years andthe second of two years. The difference between whenwe account for grants and when we actually pay themaffects the picture of costs over time. Where grants arerecognised in larger, less frequent tranches, the patternof research costs can be more volatile than theunderlying trend of annual research activity.

Annual Report and Accounts 2011/12 | 11We also measure the research undertakenduring the period, by calculating the cost of theresearch work actually carried out in the yearusing our funds (regardless of awardingpatterns). This is termed ‘annual researchactivity’. The annual research activity remainedstable at £332 million (2011: £332 million).Costs of research and annualresearch activity (£m)Costs of researchAnnual research activity3153063033303383083343253323323323552006/072007/082008/092009/102010/112011/12Annual research activitySome 39% of our research activity is directed towardsthe biology of cancer, which underpins our understandingfor all types of cancer. The remaining 61% is directedto specific cancer types. The annual research activityby cancer type, itemising the 20 types with the mostresearch activity, is shown opposite.2012 2011£m £mResearch into the biology of cancer 129 123Site-specific research 1Breast 42 45Colon and rectal 23 25Prostate 20 19Leukaemia 18 17Lung 12 12Ovarian 12 11Melanoma 9 9Pancreatic 7 8Non-Hodgkin lymphoma 7 8Skin 6 5Bladder 5 6Oesophageal 4 5Brain 4 4Kidney 4 3Cervical 4 4Myeloma 3 3Liver 2 2Testicular 2 2Small intestine 2 2Pharyngeal 2 2Other 15 17Total site-specific research 203 209Total annual research activityin the year 2 332 332Difference between annualresearch activity andaccounting costs of research – (7)Total costs of researchas per financial statements(page 23) 332 325For more information on the researchwe fund, visit our website atscience.cancerresearchuk.org/research/who-and-what-we-fund1 Site-specific research includes an apportionment of research that isrelevant to all sites. Wherever possible, research is assigned to a specificcancer type; however, some research is neither biology of cancer norcan it be tied to an individual cancer, e.g. a project on pain controlrelevant to all cancer patients.2 The figures include apportionment of uncoded work totalling £14 millionin 2012 (2011: £11 million), which cannot be tied specifically to one pieceof research but underpins all areas of research.cancerresearchuk.org

12 | Trustees’ report | Our financesOur finances(continued)Information and influencing public policyWe spent £16 million (2011: £16 million)on information and influencing public policy,activities that contribute to the preventionand treatment of cancer.FundsGeneral funds were £165 million at 31 March 2012,a decrease of £17 million. The pension fund showedan accounting deficit of £6 million. This is a £10 millionimprovement from the previous year, £8 million ofwhich was due to deficit contributions paid in the year.Restricted and endowment funds increased £2 millionto £22 million. Total funds at 31 March 2012 weretherefore £181 million, a decrease of £5 million.Cash and investments reduced by £18 million duringthe year to £193 million. A net £9 million of cash wasgenerated from operations, while capital expenditureon the programme-related investment in UKCMRIand other tangible fixed assets was £31 million.Reserves policy and managementWe maintain a prudent level of reservesto enable the Charity to manage financialrisk and deliver our research commitments,including our contribution to the Crick Institute,over a rolling five-year planning horizon.Since our research commitments span many years,we plan over the long-term. But as a fundraising charity,we are subject to the effects of short-term volatility inincome. We hold funds in reserve to ensure that wecan meet our research commitments in the face of suchfluctuations. We use a rolling five-year plan to modelhow the Charity will manage resources optimally indelivering its strategy, while holding reserves at nomore than is necessary.Our reserves policy mandates a minimum level of cashand investments to enable the Charity to discharge itsfinancial commitments as they fall due over the courseof the five-year plan. During the year we made a minorrevision to this measure to include all amounts availableto finance the general activities of the Charity –‘managed cash and investments’. The policy is alwaysto hold a minimum of two months total cash outflows.We also monitor a balance sheet based measureof reserves – ‘adjusted net assets’. This enables us tomaintain an adequate surplus of realisable assets overshort-term liabilities to absorb any unplanned shortfallin our future fundraising contribution.As shown below, we met our reserves measuresas at 31 March 2012.Managed cash 31 March 2012 31 March 2011and investments £m £mCash and investments 193 211Less: funds underseparate management 1 (11) (16)Add: undrawn amountson secured loan facility – 11Managed cash andinvestments 182 206Months of future total 4.4 4.9cash outflows months monthsPolicy = 2 months minimumAdjusted net assets 31 March 2012 31 March 2011£m £mInvestments – financial 66 69Fixed assets – realisable 5 5Current assets 250 263Current liabilities (202) (191)Provisions payable inthe next 12 months 2 (10) (14)Adjusted net assets 109 132% of planned annualfundraising contribution 34% 39%Policy = 10% minimum1 Consolidated endowments and charities.2 Including pensions deficit contributions

Annual Report and Accounts 2011/12 | 13We continue to place particular emphasis on prudentmanagement of our reserves and on long-term financialplanning. During the year, we completed the annualreview of the reserves policy, updated our rolling fiveyearplan and monitored our reserves measures monthly.This is particularly important now as we meet thechallenge of sustaining our fundraising in an uncertaineconomic climate, while maintaining research funding anddelivering our commitment to invest in The Francis CrickInstitute. We expect our reserves to reduce from currentlevels towards the policy minimum levels over thefive-year planning horizon.Investment policy and performanceOur investment policy is designed to meet therequirement of the reserves policy to exceed minimumlevels of managed cash and investments over the fiveyearplanning horizon. The policy aims to minimiseexposure to capital losses, provide the liquidity requiredby our five-year plan and, subject to those constraints,to generate stable income. As a result, we invest in cashand cash-like investments up to the minimum reserveslevels. Above these levels investments that might providehigher returns are considered, while still focusing oncapital preservation. The policy is reviewed annually.During 2011/12 we reconfigured the Charity’s bond fund,shortening average investment maturities to be moreclosely aligned to planned net use of funds over the nextthree years.The total return on investments for the year was£4 million (2011: £5 million). Across the asset classesreturns were generally in line with or exceededbenchmarks. Cash and cash-like investments had anaverage return of 0.8% against a benchmark of 0.6%.The bond fund had a total return of 4.6%, againsta benchmark of 3.2%. The endowment funds had anaverage return of 5.2%, against a benchmark of 5.4%.We maintain a £5 million overdraft facility with theRoyal Bank of Scotland. A secured loan facility of£11.3 million with HSBC was cancelled in March 2012.Neither of these facilities was used during the year.Fixed assets and investmentsWe continued to develop plans for The Francis CrickInstitute, managed by UKCMRI Ltd. During the year,we contributed a further £16 million towards theconstruction of the building. We and our partners fundthe design and build by means of capital contributionsto UKCMRI Ltd. The total costs of this initiative todate are included in programme-related investmentsat £45 million (2011: £29 million). In total, we expectour investment in completing the new institute to be£160 million by 2015 (including £18.5 million investmentin land).We spent £15 million on other fixed assets additions(2011: £24 million). This included investment in researchfacilities at our directly-funded institutes and point-of-saletechnology in our shops, enabling us to claim Gift Aid ondonated goods sold.Subsidiaries and related partiesActivities in furtherance of our objectivesCancer Research Technology Ltd (CRT) is a whollyownedsubsidiary. Its principal activity is to exploitintellectual property rights arising from research toensure that any discoveries that could lead to patientbenefit reach the clinic by the most effectivedevelopment route.Revenues were £37 million (2011: £33 million)including grants from the Charity of £4 million(2011: £7 million). Profit on ordinary activities was£4 million (2011: £2 million). Although future royaltyincome from temozolomide is expected to declineas its patents expire, the launch of abiraterone acetateas a treatment for prostate cancer is anticipated togenerate compensating growth in royalty income.In light of the new CRT Pioneer Fund (see page 9)and the potential of other products in advanced clinicaldevelopment, the outlook for CRT is considered tobe promising.Smoking causes around a third of all cancer deathsin the UK and it is our policy not to invest in tobaccocompanies or related businesses.cancerresearchuk.org

14 | Trustees’ report | Our finances | Our governance, structure and managementOur finances(continued)The Beatson Institute for Cancer Research, as a corefunded Institute, has developed a distinct approach tosupport high quality science and world-class facilities.The Institute has been substantially strengthened by thedevelopment of its Drug Discovery Programme, theexpansion and modernisation of its Biological ServicesUnit and the establishment of a screening facility as wellas building proteomics and metabolomics capability.The Institute continues to provide an outstandingenvironment to support the training and developmentof scientists, allowing it to develop strong interactionsand partnerships with the NHS and local universities.UKCMRI Ltd is a UK registered charity and limitedcompany formed to manage the creation of The FrancisCrick Institute. At 31 March 2012 the Charity hadprovided 22% of the funding for the construction ofthe new building and held 22% of UKCMRI Ltd’s shares.Our partners in this venture are the Medical ResearchCouncil, University College London, the Wellcome Trust,Imperial College London and King’s College London.The Gibb Research Fellowship Endowment Fund has fourresearch fellows and an annual reward scheme promotedby the Charity to encourage and recognise those makingoutstanding contributions to cancer research.Activities for generating fundsCancer Research UK Trading Ltd is a wholly-ownedsubsidiary which generates income from tradingactivity within the fundraising portfolio. The sale ofbought-in goods in the retail chain generated incomeof almost £7 million (2011: £7 million). Some 57% ofthis was delivered during the Christmas trading period(2011: 60%). The company also generates trading incomethrough fees, sales, auctions and corporate sponsorshipassociated with our events, the largest being Race forLife. Other activities include the selling of cause-relatedmerchandise through our corporate partnerships androyalty income. Total revenue was £22 million in the year(2011: £23 million), and profit on ordinary activities was£2 million (2011: £1 million).The Imperial Cancer Research Fund and The CancerResearch Campaign continue to receive legacy incomeon behalf of the Charity. This income is transferred tothe Charity immediately on receipt.PensionsEmployees participate in both defined contribution anddefined benefit plans. Employees may join the CancerResearch UK Retirement Plan, a defined contributionscheme, at any time. The Cancer Research UK PensionScheme (the Scheme), a defined benefit scheme,is closed to new entrants.In line with normal practice, there are two bases forassessing the value of the assets and liabilities of theScheme. For accounting purposes, they are reportedin accordance with the relevant accounting standard– FRS17. In addition, the trustees of the Schemecommission a triennial actuarial funding valuationto ensure the Scheme is appropriately funded.The prescribed basis for the latter currently resultsin a higher value for Scheme liabilities – mainly dueto a more cautious discount rate.On a FRS17 basis, the Scheme had a deficit at 31 March2012 of £6 million (2011: £16 million), equivalent to 1.5%of Scheme liabilities. The improvement reflects the deficitcontributions paid in the year of £8 million, while returnson Scheme assets in excess of expected rates wereoffset by the effect on the valuation of Scheme liabilitiesby changes in actuarial assumptions. The valuation isparticularly sensitive to the impact of the discount rateassumption on Scheme liabilities: a variation of 0.1% in thediscount rate results in a change to the surplus of around£9 million (2011: £8 million).The last triennial funding valuation took place as at31 March 2009, and showed a deficit of £102 million(2006: £12 million). A pension deficit recoveryplan is in place, which includes a schedule ofadditional contributions to be made over the next11 years. On the basis of the 2009 triennial valuationassumptions, the ongoing funding deficit would beeliminated by 2023. We continue to work with theScheme trustees to manage any deficit. The fundingdeficit as at 31 March 2012 was heavily influencedby interest rates and inflationary expectations whichreflect extraordinarily low base rates and the impactof quantitative easing. It is estimated at around£90 million (2011: £50 million deficit).

Annual Report and Accounts 2011/12 | 15Our governance, structure and managementStructure and managementCancer Research UK is a company limited by guaranteeand is a registered charity (the Charity). It is governedby a Council of Trustees, chaired by Michael Pragnell.The Council is ultimately responsible for the Charity’sstrategic direction, supported by its Committees towhom Council delegates some of its authority. Theday-to-day running of the Charity is the responsibility ofthe Executive Board, supported by the advisory groups.The Council of Trustees is committed to businessintegrity in all its activities and has put in place a robustgovernance framework to ensure, amongst other things,that appropriate measures are in place to manage risk,to comply with all relevant rules which govern theCharity and to ensure clear and transparent reporting.Committees and advisory groupsCouncil committeesAuditCommitteeCouncilResearchStrategyCommitteeFinanceCommitteeCouncilofTrusteesNominationandGovernanceCommitteeRemunerationCommitteeUKCMRICommitteeCouncilThe Council is currently made up of 11 Trusteeswho are also Members and Directors of the Charity.They set the Charity’s strategic direction and areresponsible for ensuring it upholds its values andgovernance, and delivers its objectives. They guide,advise and support the Chief Executive and approveannual budgets. They review a schedule of mattersreserved to them and delegate certain responsibilitiesto Council Committees and the Executive Board,outlined below. Council met six times during the year.MembersThe Charity’s constitution allows the appointment of upto 100 Members. They are entitled to attend all generalmeetings, including the Annual General Meeting (AGM).Their most significant duties are to receive the AnnualReport and Accounts and to elect or re-elect Trustees.Regular contact is maintained with Members, mainlythrough a quarterly letter from the Chairman.TrusteesThe Trustees and Chairman are appointed for an initialperiod of three years, which can be extended for afurther three-year period. Any further extensions toeither the Trustees’ or the Chairman’s term would onlybe made in the best interests of the Charity.Advisory groupsReporting lineAdvisory lineFundraisingand MarketingCommitteeExecutiveBoardPolicy andPublic AffairsAdvisoryGroupScientificExecutiveBoardScienceStrategyAdvisoryGroupEach Trustee benefits from an induction programmetailored to his/her knowledge and experience. It includesvisits to the Charity’s research institutes and meetingswith management. Each Trustee is formally appraisedonce in each three-year term and meets at least oncea year privately with the Chairman and Chief Executive.The Trustees continue to deploy a wide range of skillsand experience essential to good governance and theirbiographies can be found on pages 17 and 18.cancerresearchuk.org

16 | Trustees’ report | Our governance, structure and managementOur governance, structure and management(continued)CommitteesMany of the Trustees serve on Council Committees.The Chairman and the Treasurer are ex officio membersof all Council Committees, except the Audit Committee,which they may attend if invited by the CommitteeChairman. The Committees each have specific delegatedresponsibilities outlined below on behalf of Council andreview key strategic activities of the Charity. They alsomeet in order to provide advice, good counsel andexpertise to the Executive Board. Details of membershipof Committees are shown in the table on page 17.Audit CommitteeThe Committee monitors the effectiveness of theCharity’s risk management and internal control systemsand provides an annual assessment of the risk processesand policies to Council. It is responsible for reviewingthe Annual Report and Accounts of the Charity,the accounting policies and practices and the significantfinancial reporting judgements included therein. It ensuresthe independence and objectivity of the external auditorsand provides oversight of the external and internal auditactivities. It met three times during the year.Council Research Strategy CommitteeThe Committee is responsible for the development,review and implementation of the Charity’s researchstrategy. It considers the research strategy and anychanges to it as part of the annual operating planand recommends it to Council. It reviews scientificperformance objectives and targets for the Charityand monitors progress made towards them. It exercisesdelegated authority on the implementation of theresearch strategy and the research budget when thishas been approved by Council. It met three timesduring the year.Finance CommitteeThe Committee is responsible for the oversight of allaspects of the Charity’s corporate financial policies andoperations. It monitors the short and long-term viabilityof the Charity, ensuring there are sufficient reserves tofund its work to beat cancer. It reviews and approvesthe Investment and Reserves policies and monitorscompliance with them on a regular basis. It reviewsthe annual and long-term financial plans of the Charity,ensuring research expenditure is maximised. It monitorsperformance against plans and recommends actionwhere necessary to maintain a strong financial position.It oversees the management of the Charity’s investmentsand ensures that these are managed to underpin thestrategic objectives of the Charity. It met four timesduring the year.Nomination and Governance CommitteeThe Committee is responsible for reviewing and makingrecommendations to Council that the governancepolicies and procedures of the Charity accord with bestpractice and are suitable for the Charity. It assesses theeffectiveness of the governance structure, the size andcomposition of the Membership, Council, CouncilCommittees and their respective roles. It plans andinitiates the search and selection process for newMembers, Trustees and Senior Executives, assisted byindependent search companies and open advertisingas required, and recommends appointments to Council.The Committee also initiated a triennial review of theCharity’s governance framework, including updating theArticles of Association. It met five times during the year.It recommended the appointment of four new Trusteesto Council: Anne Baldock, Wendy Becker, Helen Calcraftand Dr Adrian Crellin, all of which were approved.Remuneration CommitteeThe Committee is responsible for reviewing andapproving the remuneration of the Executive Board.It determines and agrees the overall policy for theremuneration and pension arrangements of all theCharity’s employees and oversees any major changesin employee benefits. It also annually reviews theremuneration trends in the Charity. It met twiceduring the year.UKCMRI CommitteeThe Committee provides direction to and scrutiny ofthe investment in UKCMRI (The Francis Crick Institute).It reviews the detail of the corporate and commercialmatters involved prior to them being considered byCouncil. It meets when major milestones require reviewand decisions. It met three times during the year.Advisory groupsThere are also three advisory groups – Fundraisingand Marketing Committee, Policy and Public AffairsAdvisory Group and Science Strategy AdvisoryGroup – who provide expert advice and supportto the Executive Board.

Annual Report and Accounts 2011/12 | 17Commitees and Trustee membership as at 31 March 2012Council Council Committees Advisory GroupsTrusteesYear of TrusteeAppointmentMichael Pragnell (Chairman) 2010Sir James Crosby (Treasurer) 2008Ms Anne Baldock 2011Ms Wendy Becker 2011Professor Anton Berns 2010Professor Adrian Bird 2010Professor Colin Bird 2005Ms Helen Calcraft 2011Dr Philip Campbell 2003Dr Adrian Crellin 2012Professor Jonathan Knowles 2011Roger Matthews 2008Professor Jeffrey Tobias 2001AuditChairman Member Invited to attend Ex officio Retiring 31 March 2012FinanceNominationand GovernanceRemunerationCouncil ResearchStrategyUKCMRIFundraisingand MarketingPolicy andPublic AffairsExecutive BoardThe Executive Board is responsible for the day-to-dayrunning of the Charity under authority delegated byCouncil. It proposes to Council where the Charity shouldinvest its time, money and expertise. It also proposesto Council the short and long-term strategy for theCharity. As part of this, it proposes the annual operatingbudget to Finance Committee and Council for theirapproval. It met 12 times during the year. A list of theBoard members can be found on page 19.The Scientific Executive BoardThe Scientific Executive Board is responsible for theimplementation of scientific strategy and policy after itsapproval by the Council Research Strategy Committeeand Council. It works closely with the Council ResearchStrategy Committee, the Science Strategy AdvisoryGroup and the Executive Board. It met six times duringthe year.For more information on how the Charityis governed visit the website aboutus.cancerresearchuk.org/how-we-are-governedTrusteesThe Trustees who served during the year as of30 May 2012 are listed below.Michael Pragnell MA (Oxon) MBA (INSEAD), Chairman.He was the founder Chief Executive Officer of SyngentaAG where he led the creation of Syngenta to becomeworld leader in crop protection following the mergerof the agrochemicals and plant bio-science businessesof AstraZeneca and Novartis. He retired at the endof 2007 after a 39-year executive career in the chemicaland bio-technology industries. He is a Director ofCancer Research Technology, a non-executive directorof VINCI SA and a member of the board of INSEAD.Anne Baldock LLB Solicitor, is a recently retired partnerat Allen & Overy LLP, the leading global law firm.During her time at Allen & Overy, she played a pivotalrole in establishing and maintaining the firm’s positionat the top of the legal profession. Anne also sits on theboard providing scrutiny and advice to the Secretaryof State for Energy and Climate Change on newnuclear decommissioning.cancerresearchuk.org

18 | Trustees’ report | Our governance, structure and managementOur governance, structure and management(continued)Wendy Becker BA MBA was a partner at McKinseyfollowed by a career in consumer technology. AtCarphone Warehouse, she built the TalkTalk Group,and as Group Chief Marketing Officer at Vodafoneshe helped build the company’s leading internationalposition. Wendy is a non-executive director ofWhitbread plc and Ocado plc.Professor Doctor Anton Berns is the former Directorof Research and Chairman of the Board of Directorsof the Netherlands Cancer Institute. He is a memberof a number of scientific advisory boards of academicinstitutes such as CNIO Madrid, Genomic InstituteSingapore, IMP Vienna, WEHI Melbourne and EuropeanInstitute of Oncology in Milan. He is Secretary Generalof the European Molecular Biology Organisation.Professor Adrian Bird CBE FRS FRSE has held theBuchanan Chair of Genetics at the University ofEdinburgh since 1990. His awards include the 1999Louis-Jeantet Prize for Medicine and the 2008 CharlesLéopold Mayer Prize of the French Academy of Sciences.Helen Calcraft BA (Hons) MBA co-founded MilesCalcraft Briginshaw Duffy, the advertising agencybehind an advert which was named ITV’s ad of thedecade. She is chairman of Dare, an agency combiningbroadcast and digital expertise. Helen is a memberof two of the advertising industry’s most prestigiousnetworking clubs – Women in Advertising andCommunications (WACL) and the 30 Club.Dr Philip Campbell BSc MSc DSc FInstP FRAS is theEditor-in-Chief of Nature and of Nature publications.He is a Fellow of the Institute of Physics and a Fellowof the Royal Astronomical Society. He has advisedor collaborated with the Wellcome Trust, US NationalInstitutes of Health, the UK Office of Science andTechnology and the European Commission.Dr Adrian Crellin MA FRCR FRCP is Vice-President ofthe Royal College of Radiologists and the Department ofHealth’s National Clinical Lead on Proton Beam Therapy.He studied medicine at the University of Cambridge andcompleted his medical training at three London hospitals:St Bartholomew’s, The Middlesex and Mount Vernon.Sir James Crosby BA FFA, Treasurer. Sir Jamesis a Fellow of the Faculty of Actuaries. He is Chairmanof Misys plc and the Senior Independent Directorof Compass Group plc. He is also a member of theEuropean Advisory Board of Bridgepoint Capital anda member of the Finance Committee of the Delegacyof Oxford University Press. He previously served asa non-executive director of ITV and the FSA, followinga 30-year executive career in fund management,insurance and banking.Professor Jonathan K.C. Knowles is former Headof Group Research and Member of the ExecutiveCommittee at Roche. He was a member of the Board atGenentech and Chugai Pharmaceuticals. He is Professorof Translational Medicine at EPFL in Switzerland and holdsa Distinguished Professorship in Personalised Health Careat FIMM (Finnish Institute for Molecular Medicine) at theUniversity of Helsinki.Roger Matthews ACA BSocSci is a CharteredAccountant and is currently non-executive Chairmanof MITIE Group plc, LSL Property Services plc andPertemps Network Group Limited and is non-executiveDirector of Zetar plc. He previously held the roles ofGroup Finance Director of J. Sainsbury PLC, ManagingDirector and Group Finance Director of Compass Groupplc, and worked for Grand Metropolitan plc, CadburySchweppes plc and PricewaterhouseCoopers LLP.Trustees who retired during the year:20 September 2011Liz Hewitt FCA BSc(Econ) FRSA; Dr Keith F Palmer OBE;Leah Sowden FCA CTA DChA.31 March 2012Professor Colin Bird CBE FRSE; Professor Jeffrey TobiasMD FRCP FRCR.For more information on the Trustees andtheir full biographies please visit the websiteaboutus.cancerresearchuk.org/trustees

Annual Report and Accounts 2011/12 | 19Executive BoardThe Executive Directors who were membersof the Executive Board during the year and asof 30 May 2012 were:Harpal Kumar MA MEng MBA DScChief Executive (Chair of Executive Board)Iain Foulkes PhDExecutive Director, Strategy and Research FundingProfessor Peter Johnson MA MD FRCPChief ClinicianProfessor Nic Jones PhDChief Scientist (Chair of Scientific Executive Board)Sarah Lyness MAExecutive Director, Policy and InformationLynne Robb BSc FCAChief Financial Officer and Executive Director,Corporate ResourcesElizabeth Sideris BA MA FCIPDExecutive Director, Human ResourcesRichard C TaylorExecutive Director, Fundraising and MarketingClare Shepherd BAGeneral CounselThe General Counsel is not a member of the ExecutiveBoard but attends Executive Board meetings.For more information on the Executive Boardand their biographies please visit the websiteaboutus.cancerresearchuk.org/executive-boardEmployeesIt is the Charity’s policy to provide equal opportunitiesto job applicants and employees of any race, nationality,ethnic origin, marital status, religion or belief, gender,disability, sexual orientation, age or employment status.The Charity does not condone or tolerate any formof discrimination in its recruitment or employmentpractices. All employees and applicants are treatedon merit, fairly, with respect and dignity, recognised asindividuals and valued for the contribution they make,provided fair and equal access to training, development,reward and progression opportunities and accountablefor the impact of their own behaviour and actions.All of the Charity’s policies follow these principles.During the year, regular communications to employeeshave been provided on matters affecting them,including factors affecting the Charity’s progress andthey have been consulted on decisions affecting them.VolunteersAround 40,000 volunteers support the Charityby working in shops and offices, at eventsand by fundraising in their communities.People who volunteer make a vital contribution towardsthe Charity’s achievements. Their presence and impactare wide-ranging. The Charity has over 17,500 volunteersin its retail chain, 11,000 supporting events series,including Race for Life, and 7,800 in local fundraising –in addition to all the volunteers who contribute in officesand through placements and internships. 165 CancerCampaigns Ambassadors now actively lobby on behalf ofthe Charity. All Trustees contribute their time voluntarily.An internship scheme continues to develop, involving132 volunteer interns in challenging 12-week projects.The scheme has been recognised, for the sixth consecutiveyear, in the National Council for Work Experience awardsand was also highly placed in Rate My Placement, which isvoted for by the interns themselves. The number ofapplicants finding volunteering opportunities through theCharity’s website was over 3,360, in addition to onlineRace for Life volunteer registrations.cancerresearchuk.org

20 | Trustees’ report | Our governance, structure and management | Statement of Trustees’ responsibilitiesOur governance, structure and management(continued)The annual ‘Flame of Hope’ awards recognised volunteersfrom across the UK and from almost every area of work.Michael Pragnell, Chairman, hosted an event showcasingthe achievements of some of the most remarkablevolunteers and their exceptional commitment anddedication to the Charity.Management of riskThe Trustees ensure that the Charity maintainssound risk management and internal control systems.The Audit Committee monitors these arrangementsand reports to Council on their effectiveness.During the year, the Audit Committee reviewedreports on internal audits undertaken across keyoperations of the Charity, and the major risks, controlrecommendations and follow-up actions, reviewed theprogress and delivery of several key programmes tomonitor delivery of benefits and met the externalauditors in private sessions.Market riskSome of the Charity’s investments are subject to marketmovements and some limited realised and unrealisedgains have been recorded in the year. The Charity’sinvestment policy focuses on minimising it’s exposureto losses as explained in ‘Investment policy andperformance’ on page 13.Cash flow riskThe Charity’s activities expose it to some risk ofchanges in foreign currency exchange rates, primarilyon US dollars and Euros. These exposures aremonitored and from time to time foreign exchangeforward contracts may be used to hedge net exposures.Liquidity riskIn the current economic climate, the Charity mustensure it is able to meet its liabilities as and when theyfall due. The Charity has continued to improve its cashflow management and forecasts. The reserves policyis explained on page 12.Financial risk managementThe impact of the continuing economic uncertaintyremains a major risk to the Charity. As a result, theCharity regularly updates and reviews the rolling five-yearfinancial plan, reserves and investment policies (see pages12 and 13). During the year, these plans demonstratedthat the Charity is able to maintain its research fundingcapacity over the long-term.The Charity’s activities expose it to a number of otherfinancial risks including credit risk, market risk, cash flowrisk and liquidity risk. Any use of financial derivatives isgoverned by policies approved by Council. Derivativesare not used for speculative purposes.Credit riskThe principal financial assets are bank balances,investments, trade and other receivables. The Charity’scredit risk is primarily attributable to bank balances anda policy is in place to limit the amount held with anyone banking group and to constantly review theircredit ratings.Going concernThe Trustees have reviewed the Charity’s financialposition, taking account of the satisfactory levels ofreserves and cash, amounts receivable that are notincluded in the accounts (principally from the committedgiving supporter base), the annual plan and the five-yearfinancial plan, and its systems of financial and riskmanagement. As a result of their review, the Trusteesbelieve that the Charity is well placed to manageoperational and financial risks successfully despitethe current uncertain economic outlook.Accordingly, the Trustees have a reasonable expectationthat the Charity and the Group have adequate resourcesto continue in operational existence for the foreseeablefuture. Thus they continue to adopt the going concernbasis of accounting in preparing the annual accounts.

22 | Lorum Financial ipsum statements dolor sit| Independent Auditors’ Report | Consolidated Statement of Financial ActivitiesIndependent Auditors’ Report to the Membersand Trustees of Cancer Research UKWe have audited the financial statements of CancerResearch UK for the year ended 31 March 2012 whichcomprise the Consolidated Statement of FinancialActivities, the Group and Charity Balance Sheets,the Consolidated Cash Flow Statement and the relatednotes. The financial reporting framework that hasbeen applied in their preparation is applicable law andUnited Kingdom Accounting Standards (United KingdomGenerally Accepted Accounting Practice).Respective responsibilities of trustees and auditorsAs explained more fully in the Statement of Trustees’Responsibilities set out on page 21 the trustees(who are also the directors of the charitable companyfor the purposes of company law) are responsiblefor the preparation of the financial statements andfor being satisfied that they give a true and fair view.Our responsibility is to audit and express an opinion onthe financial statements in accordance with applicablelaw and International Standards on Auditing (UK andIreland). Those standards require us to comply with theAuditing Practices Board’s Ethical Standards for Auditors.This report, including the opinions, has been preparedfor and only for the charity’s members and trusteesas a body in accordance with Chapter 3 of Part 16 ofthe Companies Act 2006 and for no other purpose.We do not, in giving these opinions, accept or assumeresponsibility for any other purpose or to any otherperson to whom this report is shown or into whosehands it may come save where expressly agreed byour prior consent in writing.Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amountsand disclosures in the financial statements sufficient togive reasonable assurance that the financial statementsare free from material misstatement, whether caused byfraud or error. This includes an assessment of: whetherthe accounting policies are appropriate to the group’sand charitable company’s circumstances and havebeen consistently applied and adequately disclosed;the reasonableness of significant accounting estimatesmade by the trustees; and the overall presentation of thefinancial statements. In addition, we read all the financialand non-financial information in the Annual Reportand Accounts 2011/12 to identify material inconsistencieswith the audited financial statements. If we become awareof any apparent material misstatements or inconsistencieswe consider the implications for our report.Opinion on financial statementsIn our opinion the financial statements:give a true and fair view of the state of the group’sand the parent charitable company’s affairs as at31 March 2012, and of the group’s incoming resourcesand application of resources, including its incomeand expenditure and group’s cash flows, for the yearthen ended;have been properly prepared in accordance withUnited Kingdom Generally Accepted AccountingPractice; andhave been prepared in accordance with therequirements of the Companies Act 2006.Opinion on other matters prescribed by theCompanies Act 2006In our opinion the information given in the Trustees’Annual Report for the financial year for which the financialstatements are prepared is consistent with the financialstatements.Matters on which we are required to report by exceptionWe have nothing to report in respect of the followingmatters where the Companies Act 2006 require us toreport to you if, in our opinion:adequate accounting records have not been kept bythe parent charitable company or returns adequatefor our audit have not been received from branchesnot visited by us; orthe parent charitable company financial statementsare not in agreement with the accounting recordsand returns; orcertain disclosures of trustees’ remuneration specifiedby law are not made; orwe have not received all the information andexplanations we require for our audit.Liz Hazell (Senior Statutory Auditor)for and on behalf of PricewaterhouseCoopers LLP,Chartered Accountants and Statutory AuditorsLondon30 May 2012

Annual Report and Accounts 2011/12 | 23Consolidated Statement of Financial Activitiesfor the year ended 31 March 2012(incorporating an income and expenditure account)Incoming resourcesEndowmentUnrestricted /restricted Restatedfunds funds Total Total2012 2012 2012 2011Note £m £m £m £mIncoming resources from generated fundsVoluntary income 2a 312.7 37.4 350.1 351.0Activities for generating funds 2b 82.1 – 82.1 81.9Investment income 2.7 0.2 2.9 3.8Incoming resources from charitable activities 3 44.0 13.5 57.5 44.4Other incoming resources – – – 1.4Total incoming resources 441.5 51.1 492.6 482.5Resources expendedCosts of generating fundsCosts of generating voluntary income 4a 80.1 – 80.1 80.6Costs of fundraising trading 4b 68.6 – 68.6 70.3Costs of managing investments 0.2 – 0.2 0.1Total costs of generating funds 148.9 – 148.9 151.0Net incoming resources available for charitable application 292.6 51.1 343.7 331.5Costs of charitable activitiesResearch 5 279.9 52.3 332.2 324.7Information and influencing public policy 5 12.1 3.6 15.7 15.7Total costs of charitable activities 292.0 55.9 347.9 340.4Governance costs 7 1.5 – 1.5 1.4Total resources expended 442.4 55.9 498.3 492.8Net outgoing resources before transfers (0.9) (4.8) (5.7) (10.3)Transfers between funds 24, 25 (6.9) 6.9 – –Net outgoing resources after transfers (7.8) 2.1 (5.7) (10.3)Other recognised gains and lossesNet realised investment gains/(losses) 14 1.9 0.1 2.0 (0.5)Net loss on associates (0.2) – (0.2) (0.7)Net expenditure for the year 9 (6.1) 2.2 (3.9) (11.5)Net unrealised investment (losses)/gains 14 (0.7) 0.1 (0.6) 2.0Net actuarial (losses)/gains on pensions 20 (0.2) – (0.2) 13.6Net movement in funds (7.0) 2.3 (4.7) 4.1Funds brought forward 166.1 19.8 185.9 181.8Funds carried forward 24, 25 159.1 22.1 181.2 185.9All 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 for the year and the historicalcost equivalents. Prior year amounts have been restated to reflect the allocation of events expenditure – see Note 4.cancerresearchuk.org

24 | Financial statements | Balance Sheets | Consolidated Cash Flow StatementBalance Sheetsas at 31 March 2012Registered company number 4325234Fixed assetsGroup Group Charity Charity2012 2011 2012 2011Note £m £m £m £mNegative goodwill 12 (4.0) (4.8) – –Tangible fixed assets 13 96.6 102.1 79.0 86.9Investments 14 65.7 68.5 59.8 62.3Programme-related investment 15 44.9 28.9 44.9 29.3Current assets203.2 194.7 183.7 178.5Stock 1.9 1.7 0.6 0.4Debtors 17 120.1 118.4 110.6 115.2Investments 14 55.2 – 55.2 –Cash and short-term deposits 72.5 142.6 64.7 132.5249.7 262.7 231.1 248.1Creditors: amounts falling due within one year 18a (201.6) (191.1) (200.3) (194.9)Net current assets 48.1 71.6 30.8 53.2Total assets less current liabilities 251.3 266.3 214.5 231.7Creditors: amounts falling due after more than one year 18b (57.2) (59.0) (56.9) (58.3)Provisions for liabilities and charges 19 (6.9) (5.9) (6.8) (5.7)Net assets (excluding net pension liability) 187.2 201.4 150.8 167.7Net pension liability 20 (6.0) (15.5) (6.0) (15.5)Net assets (including net pension liability) 26 181.2 185.9 144.8 152.2FundsRestricted and endowment fundsRestricted funds 24 18.2 14.3 1.0 (0.2)Permanent endowment funds 24 3.9 5.5 – 1.8Unrestricted funds22.1 19.8 1.0 1.6General funds (including revaluation reserve) 25 165.1 181.6 149.8 166.1Pension deficit 20 (6.0) (15.5) (6.0) (15.5)159.1 166.1 143.8 150.6Total funds 26 181.2 185.9 144.8 152.2The financial statements on pages 23 to 53 were approved by the Trustees on 30 May 2012 and signed on their behalf byMichael Pragnell, ChairmanSir James Crosby, Treasurer

Annual Report and Accounts 2011/12 | 25Consolidated Cash Flow Statementfor the year ended 31 March 2012Group Group2012 2011Note £m £mNet cash inflow/(outflow) from operating activities a 9.2 (9.0)Investment income 2.9 3.8Capital expenditurePurchase of tangible fixed assets 13a (15.0) (24.1)Receipts from sale of tangible fixed assets – 19.3Increase in programme-related investment 15 (16.2) (4.8)Financial investments(31.2) (9.6)Purchase of fixed and current asset investments 14 (128.2) (31.5)Proceeds from sale of fixed asset investments 14 113.3 34.6(14.9) 3.1Net cash outflow from investing activities (46.1) (6.5)Management of liquid resources(Increase)/decrease in cash and deposits (investment assets) 14 (36.1) 0.4Decrease in short-term deposits (current assets) b 10.0 97.0Net cash (outflow)/inflow from liquid resources (26.1) 97.4(Decrease)/increase in cash b (60.1) 85.7Notescancerresearchuk.orgGroup Group2012 2011Note £m £ma) Reconciliation of net outgoing resources to net cash flow from operating activitiesNet outgoing resources (5.7) (10.3)Investment income (2.9) (3.8)Depreciation charge for the year 13a 19.9 17.9Write-off of book value on disposal of tangible fixed assets 13a 0.6 0.8Proceeds received from sale of tangible fixed assets – (19.3)Amortisation of negative goodwill 12 (0.8) (0.8)Increase in stock (0.2) (0.3)(Increase)/decrease in debtors (1.7) 22.0Increase/(decrease) in creditors 8.7 (5.2)Increase/(decrease) in provision for liabilities and charges 1.0 (2.6)Total pension cost recognised in SOFA 20 9.3 10.2Pension contributions by employer 20 (19.0) (17.6)Net cash inflow/(outflow) from operating activities 9.2 (9.0)b) Movement in cash and short-term depositsCash and short-term deposits at 1 April 2011 142.6 153.9Decrease in short-term deposits (10.0) (97.0)(Decrease)/increase in cash (60.1) 85.7Decrease in cash and short-term deposits (70.1) (11.3)Cash and short-term deposits at 31 March 2012 72.5 142.6

26 | Financial statements | Notes to the AccountsNotes to the Accounts1. Accounting policiesAccounting conventionThese accounts have been prepared on the going concern basis and under the historical cost convention as modifiedby the revaluation of investment properties and listed investments. They comply with the Statement of RecommendedPractice ‘Accounting and Reporting by Charities’ as revised in 2005 (‘the SORP’), together with the reportingrequirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the CharitiesAccounts (Scotland) Regulations 2006 and applicable accounting standards in the United Kingdom. The Charity hasadapted the Companies Act formats to reflect the SORP and the special nature of the Charity’s activities.Basis of consolidationThe consolidated accounts incorporate the results of Cancer Research UK (‘the Charity’) and its subsidiary undertakingson a line by line basis, as well as its share of the results of its associate using the net equity method. The consolidatedentity is referred to as ‘the Group’. No separate company Statement of Financial Activities (SOFA) has been preparedfor the Charity as permitted by section 408 of the Companies Act 2006 and paragraph 397 of the SORP.Incoming resourcesIncoming resources are accrued and included in the SOFA when the Group is entitled to the income and it can bequantified with reasonable certainty.Voluntary incomePecuniary legacies are recognised when probate is granted. Residuary legacies are recognised when probate is grantedand there is sufficient information to value them: they are included at 90% of their valuation (to reflect the uncertainty ofestate administration) less an adjustment for any loss of value on unrealised property and investment assets. Reversionaryinterests involving a life tenant are not recognised. Direct giving donations, including regular gifts, are accounted for whenreceived. Voluntary income from events is recognised when the event takes place. Income from local committees isincluded when received by the committee. Donations in kind are recognised at their value to the Group when receivedand an equivalent amount is included in the appropriate cost line: the only amounts included for donated services arethose provided in a professional capacity. Gift Aid receivable is included in income when there is a valid declaration fromthe donor.Activities for generating fundsRetail income, including income from donated goods, is accounted for when the sale takes place. Events registration feesare recognised when the event takes place. Events merchandise is accounted for when the sale occurs.Income resources from charitable activitiesGrants are recognised when the Group is entitled to receipt. Donations in kind (such as pharmaceuticals for use in drugdevelopment or clinical trials) are included at market value and an equivalent amount is included in research costs. Incomefrom intellectual property rights is recognised gross, before revenue share payments to third parties, on completion of anycontractual obligations.

Annual Report and Accounts 2011/12 | 271. Accounting policies (continued)Resources expendedExpenditure is accounted for on an accruals basis. Support costs, which are not directly attributable to generating fundsor charitable activities, are allocated to those categories based on the appropriate combination of staff time, departmentheadcount, direct expenditure and activity levels. Irrecoverable VAT is included with the expense item to which it relates.Costs of generating fundsThe costs of fundraising trading do not include any valuation of donated goods sold.Costs of charitable activitiesA research grant is recognised when the Group formally notifies the recipient of the award following scientific review.The liability is measured as the total of expected payments for the period to the next scientific review. Payments due aftera scientific review are disclosed as grant commitments. Expected total payments on life chairs/fellowships are provided forwhen the appointment is made. Liabilities for awards where more than five years of expected payments are provided atthe outset are discounted to current value using a weighted average cost of capital.Governance costsThese are the costs of providing strategic direction and ensuring public accountability.Negative goodwillNegative goodwill arises when the aggregate fair values of a consolidated entity’s assets and liabilities exceed anyacquisition cost, and is amortised in the SOFA over ten years.Tangible fixed assets and depreciationTangible fixed assets are capitalised at cost, including purchase price and any costs of bringing the asset to workingcondition for its intended use. The costs of laboratory refurbishments are written off as they are incurred. The Groupapplies minimum levels for capitalisation per item – £5,000 for the Charity and £500 to £5,000 for its subsidiaries.Batches of items below those thresholds are capitalised where they form part of one project and together cost morethan £50,000. Software is only capitalised where its cost exceeds £50,000. Depreciation is provided so as to write offthe cost of fixed assets on a straight-line basis over their expected useful lives, as follows:Freehold landFreehold buildingsLeasehold buildings and research facilitiesPlant and equipmentRetail fixtures and fittingsComputer equipment and softwareNot depreciated25 years25 years, or lease period if shorter4–5 years5 years3 yearsInvestmentsListed investments are stated at market value. Unlisted investments are included at cost as an approximation to marketvalue. The SOFA includes realised gains and losses on investments sold in the year and unrealised gains and losses onrevaluation of investments.cancerresearchuk.org

28 | Financial statements | Notes to the AccountsNotes to the Accounts(continued)1. Accounting policies (continued)Programme-related investmentsProgramme-related investments are held at cost less any provision for diminution in value.Impairment of fixed assets and investmentsFixed assets and investments are subject to review for impairment when there is an indication of a reduction in theircarrying value. Any impairment is recognised in the year in which it occurs.StockStock is valued at the lower of cost and net realisable value. Stock does not include the value of goods donated for salein 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 carryingamount.Fund accountingRestricted funds can only be used for particular purposes specified by the donor. Permanent endowment funds are fundswhere the capital must be retained and invested. General funds may be used for any purpose within the Charity’s objects.Pension costsThe amounts charged to the SOFA for defined contribution schemes represent the contributions payable in the period.For the defined benefit scheme the current service cost is charged to employee costs over the anticipated period ofemployment; net pension finance income or costs are included immediately in employee costs; actuarial gains and lossesare recognised immediately on the face of the SOFA; and the scheme surplus or deficit is shown on the face of thebalance sheet and separately in reserves.Foreign currencyForeign currency transactions are recorded at the exchange rate at the time of the transaction. Foreign currencybalances are translated into sterling at the exchange rate at the balance sheet date. Resulting gains or losses are includedin the SOFA.LeasesRentals payable under operating leases are charged to the SOFA evenly over the period of the lease.TaxationThe Group is exempt from income and corporation taxes on income and gains to the extent that they are applied to itscharitable objects. The trading subsidiaries do not generally pay UK corporation tax because their policy is to pay taxableprofits to the Charity as Gift Aid. Foreign tax incurred by overseas subsidiaries is charged as it is incurred.

Annual Report and Accounts 2011/12 | 292. Incoming resources from generated fundsa) Voluntary incomeGroup Group2012 2011£m £mLegacies 136.5 148.2Direct giving 100.6 99.5Events 55.0 59.9Volunteer fundraising 26.9 24.0High-value donors 27.1 15.3Donations at shops 3.2 3.3Amortisation of negative goodwill (Note 12) 0.8 0.8350.1 351.0The estimated amount of legacies for which the Group has received notice of entitlement, but which has not beenaccrued – either because probate has not yet been obtained, or on grounds of insufficient information or certainty– was £24 million (2011: £23 million). At 31 March 2012, the Charity had an interest in 1,409 estates that are subjectto a life interest (2011: 1,431).b) Activities for generating fundsGroup Group2012 2011£m £mRetail income (sale of donated and bought-in goods) 66.1 64.9Events registrations and merchandise 14.2 15.4Other 1.8 1.682.1 81.93. Incoming resources from charitable activitiesGroup Group2012 2011£m £mResearch 55.3 42.8Cancer information and influencing 2.2 1.657.5 44.4In the year to 31 March 2012, £0.2 million (2011: £1.2 million) of gifts in kind relating to free drugs were included inResearch income.cancerresearchuk.org

30 | Financial statements | Notes to the AccountsNotes to the Accounts(continued)4. Costs of generating fundsa) Costs of generating voluntary incomeRestatedGroup Group2012 2011£m £mLegacies 5.7 6.8Direct giving 27.3 26.5Events 20.1 18.7Volunteer fundraising 9.8 9.0High-value donors 8.4 7.7Supporter relationship programme 8.8 11.980.1 80.6b) Costs of fundraising tradingRestatedGroup Group2012 2011£m £mRetail costs (including costs of bought-in goods) 54.0 54.5Events 14.4 15.3Other goods sold 0.2 0.568.6 70.3The total net contribution from fundraising activities, including retail, amounted to £284 million (2011: £282 million).Excluding retail, the total net contribution was £271 million (2011: £272 million). Costs of fundraising trading events wereclassified under ‘events’ within costs of generating voluntary income in the previous year. It is considered more appropriateto include them in costs of fundraising trading.5. Costs of charitable activitiesDirect Grant Support Group Groupcosts costs costs 2012 2011TotalTotal£m £m £m £m £mResearch 154.9 166.7 10.6 332.2 324.7Cancer information and influencing 13.1 – 2.6 15.7 15.7168.0 166.7 13.2 347.9 340.4

Annual Report and Accounts 2011/12 | 316a) Grant costsGroup Group2012 2011£m £mGrants provided in the year 171.1 176.3Write-back of underused grants and other adjustments (4.4) (11.7)166.7 164.66b) Grant creditors and commitmentsAmounts due for payment in the year to 31 March2017Total 2013 2014 2015 2016 onwards£m £m £m £m £m £mGrant creditors – research grants, life chairs and fellowshipsBalance at 31 March 2012 193.2 136.0 38.5 15.1 3.0 0.6Grant commitments (not included in the accounts)Balance at 31 March 2012 263.3 43.2 79.5 56.6 45.6 38.4Amounts for awards where more than five years of expected payments are provided at the outset have been discountedusing a weighted average cost of capital of between 2.46% and 4.29% (2011: between 2.81% and 6.38%). An analysis ofgrant-funded research by host institution with details of the grants awarded during the year, forming part of these auditedfinancial statements, can be found on the Charity’s website at aboutus.cancerresearchuk.org/grants7. Governance costsGroup Group2012 2011£m £mStrategy, Council and Committee costs 1.2 1.1Internal audit 0.2 0.2Auditors’ remuneration (including irrecoverable VAT) 0.1 0.11.5 1.4cancerresearchuk.org

32 | Financial statements | Notes to the AccountsNotes to the Accounts(continued)8. Support costsSupport costs of £32 million have been allocated to SOFA categories as shown below.Costs ofgenerating Costs ofInformation voluntary fundraising Group GroupResearch & influencing income trading 2012 2011Support cost Basis of split £m £m £m £m £m £mInformation technology A 3.5 1.9 9.8 1.5 16.7 15.6Corporate resources A, B, C 3.8 0.3 2.2 1.0 7.3 7.4Human resources A, B 2.5 0.2 1.8 1.7 6.2 6.3General Counsel 1 A, D 1.0 0.2 0.8 0.6 2.6 2.9Pension finance (credit)/charge E (0.2) – (0.1) (0.1) (0.4) 1.41Includes Legal, Risk Management and Health & Safety10.6 2.6 14.5 4.7 32.4 33.6A Headcount C Transaction volumes E Employer pension contributionsB Time spent D Insurance premium shareIncluded in General Counsel is the market value of pro bono legal costs of £0.3 million (2011: £0.3 million).9. Net expenditure for the yearGroup Group2012 2011£m £mThis is stated after charging/(crediting):Depreciation charge for the year (Note 13) 19.9 17.9Loss on disposal of fixed assets 0.6 0.8Amortisation of negative goodwill (Note 12) (0.8) (0.8)Rentals payable under operating leases:– Land and buildings 19.0 20.4– Vehicles and equipment 1.0 3.5Rents receivable (0.7) (0.9)Irrecoverable VAT 7.0 5.9Auditors’ remuneration for Group and Charity (excluding irrecoverable VAT) 0.1 0.1Gift Aid income (24.4) (26.8)

Annual Report and Accounts 2011/12 | 3310. 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:Charity only total incoming resources for the year were £441 million (2011: £434 million)Charity only net decrease in funds in the year totalled £7 million (2011: increase of £4 million)11. Employees and Trusteesa) EmployeesThe employee costs for the Group and Charity were:Group Group Charity Charity2012 2011 2012 2011£m £m £m £mWages and salaries 107.3 108.9 90.2 92.8Social security costs 9.4 9.4 7.9 8.0Pension costs 12.7 12.6 11.0 10.8129.4 130.9 109.1 111.6The average number of Group and Charity employees, analysed by function, was:Group Group Charity Charity2012 2011 2012 2011No. No. No. No.Charitable activities 1,670 1,652 1,346 1,340Fundraising 1,812 1,819 1,812 1,819Support services 486 514 435 4693,968 3,985 3,593 3,628In addition, over 2,800 scientists, technicians and other staff engaged in cancer research throughout the United Kingdomwere supported by grants made by the Group (2011: over 2,800).cancerresearchuk.org

34 | Financial statements | Notes to the AccountsNotes to the Accounts(continued)11. Employees and Trustees (continued)The number of employees during the year, whose gross pay and benefits (excluding employer pension contributions andawards to inventors) fell within the following bands, was:Group Group2012 2011Banding No. No.£60,001 – £70,000 49 48£70,001 – £80,000 36 35£80,001 – £90,000 28 36£90,001 – £100,000 13 12£100,001 – £110,000 8 8£110,001 – £120,000 8 5£120,001 – £130,000 4 2£130,001 – £140,000 4 6£140,001 – £150,000 3 4£150,001 – £160,000 2 3£160,001 – £170,000 2 3£170,001 – £180,000 2 1£210,001 – £220,000 1 1160 164In respect of employees in the above bandings, 96 accrued benefits under defined benefit pension schemes (2011: 123)and payments to defined contributions schemes totalled £390,000 (2011: £412,000).b) TrusteesNo Trustee has received any remuneration from the Group during the year (2011: none). The total expenses reimbursedto 16 Trustees amounted to £20,527 (2011: £13,446 to 15 Trustees). This represents travel and subsistence expensesincurred in attending Council, Committee meetings and Charity events in their official capacity. As permitted by theArticles of Association, the Trustees have the benefit of an indemnity which is a qualifying third party indemnity provisionas defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial yearand is currently in force. The Charity also purchased and maintained throughout the financial year Trustees’ and Officers’liability insurance in respect of itself and its Trustees.12. Negative goodwillGroup Group2012 2011£m £mArising on consolidation of the Beatson Institute for Cancer ResearchAt 1 April 2011 (4.8) (5.6)Amortisation 0.8 0.8At 31 March 2012 (4.0) (4.8)

Annual Report and Accounts 2011/12 | 3513. Tangible fixed assetsa) GroupPlant,Freehold Freehold & equipment, Assets in the Retail leases,land & Leasehold leasehold fixtures & course of fixturesbuildings properties improvements fittings construction & fittings Total£m £m £m £m £m £m £mCostAt 1 April 2011 51.9 20.5 17.5 137.7 4.7 13.1 245.4Additions – 0.1 1.3 9.8 1.5 2.3 15.0Transfers – – 4.3 0.3 (4.6) – –Disposals – – (1.7) (3.9) – (0.4) (6.0)At 31 March 2012 51.9 20.6 21.4 143.9 1.6 15.0 254.4DepreciationAt 1 April 2011 16.0 2.8 14.3 100.1 – 10.1 143.3Charge for the year 1.7 1.0 0.8 15.2 – 1.2 19.9Disposals – – (1.5) (3.5) – (0.4) (5.4)At 31 March 2012 17.7 3.8 13.6 111.8 – 10.9 157.8Net Book ValuesAt 31 March 2012 34.2 16.8 7.8 32.1 1.6 4.1 96.6At 1 April 2011 35.9 17.7 3.2 37.6 4.7 3.0 102.1The Group and the Charity has freehold property with a net book value of £34.2 million (2011: £35.9 million). Havingdiscussed the matter with a firm of chartered surveyors, the Trustees believe that both the aggregate existing use valueand the aggregate market value of the tangible fixed asset properties are in excess of £46 million (2011: £47 million).The Charity granted an option to the Group’s associate, UKCMRI Ltd, on 16 April 2012 for the right to acquire a longleasehold interest in a freehold building owned by the Charity with a book value of £14.4 million at a consideration inexcess of its book value.cancerresearchuk.org

36 | Financial statements | Notes to the AccountsNotes to the Accounts(continued)13. Tangible fixed assets (continued)b) CharityPlant,Freehold Freehold & equipment, Assets in the Retail leases,land & Leasehold leasehold fixtures & course of fixturesbuildings properties improvements fittings construction & fittings Total£m £m £m £m £m £m £mCostAt 1 April 2011 51.9 19.0 16.1 123.4 0.1 12.5 223.0Additions – 0.1 0.4 6.8 0.1 2.3 9.7Disposals – – (1.7) (3.5) – (0.1) (5.3)At 31 March 2012 51.9 19.1 14.8 126.7 0.2 14.7 227.4DepreciationAt 1 April 2011 16.0 2.7 14.1 93.6 – 9.7 136.1Charge for the year 1.7 0.9 0.6 12.6 – 1.2 17.0Disposals – – (1.5) (3.1) – (0.1) (4.7)At 31 March 2012 17.7 3.6 13.2 103.1 – 10.8 148.4Net Book ValuesAt 31 March 2012 34.2 15.5 1.6 23.6 0.2 3.9 79.0At 1 April 2011 35.9 16.3 2.0 29.8 0.1 2.8 86.9

Annual Report and Accounts 2011/12 | 3714. InvestmentsGroup Group Charity Charity2012 2011 2012 2011£m £m £m £mAt market valueUK listed equity investments 1.6 1.9 0.1 0.1UK fixed and variable interest stocks 43.5 59.4 42.6 58.5UK cash investments 17.5 5.7 15.0 3.0UK investment properties 1.9 0.5 1.9 0.5Investments in UK unlisted companies 0.4 0.3 – –Investment in subsidiaries – – 0.2 0.2Total UK investments 64.9 67.8 59.8 62.3Overseas fixed and variable interest stocks 0.8 0.7 – –Total fixed asset investments 65.7 68.5 59.8 62.3UK cash investments 24.2 – 24.2 –UK term bank deposits 31.0 – 31.0 –Total current asset investments 55.2 – 55.2 –Total investments 120.9 68.5 115.0 62.3No investment represented 5% or more of the portfolio by market value in the Group and Charity (2011: none).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 numberof investment properties held, separate details of each valuation are not reported.GroupCharity2012 2012£m £mMovementsAt 1 April 2011 68.5 62.3Additions 128.2 127.8Net movement in cash 36.5 36.3Transfers out to short-term deposits (0.4) –Disposal proceeds (113.3) (112.6)Net realised investment gains 2.0 2.0Net unrealised investment losses (0.6) (0.8)At 31 March 2012 120.9 115.0The historical cost of Group and Charity investments at 31 March 2012 was £90.1 million (2011: £68.1 million) and£85.6 million (2011: £60.7 million) respectively.cancerresearchuk.org

38 | Financial statements | Notes to the AccountsNotes to the Accounts(continued)15. Programme-related investment – UKCMRI LtdGroup Group Charity Charity2012 2011 2012 2011£m £m £m £mLand 18.5 18.0 18.5 18.0Loan – 6.3 – 6.3Investment in associate 26.4 4.6 26.4 5.0Total programme-related investments 44.9 28.9 44.9 29.3Group Charity2012 2012£m £mMovementsAt 1 April 2011 28.9 29.3Conversion of loan to shares (6.3) (6.3)New shares issued 22.0 22.0Acquisition of land 0.5 0.5Impairment – (0.6)Loss on associate (0.2) –At 31 March 2012 44.9 44.9Group Group2012 2011£m £mShare of net assetsThe Group’s 22.2% share (2011: 26.2%) of:Fixed assets 23.2 9.5Current assets 7.3 4.8Gross assets 30.5 14.3Gross liabilities (4.1) (9.7)26.4 4.6

Annual Report and Accounts 2011/12 | 39Group Group2012 2011£m £mShare of net resultThe Group’s 22.2% share (2011: 26.2%) of:Total incoming resources 0.2 –Total resources expended (0.9) (0.2)Net outgoing resources (0.7) (0.2)Other movements on associate interest 0.5 (0.2)Loss on associate (0.2) (0.4) 1New shares issued 22.0 5.0Net movement in funds 21.8 4.6At 31 March 2012, the Charity holds 27,009,653 out of 121,399,443 issued ordinary shares, 22,020,252 of which wereissued at par during the year to help fund the construction of the UKCMRI building. The Charity jointly owns with theother founder partners land at Brill Place on which the UKCMRI research institute building is being constructed. The totalacquisition cost of the land was £88 million. As at 31 March 2012, related party balances with UKCMRI Ltd compriseda £549,000 trading balance due from the Charity (2011: £386,000). The Charity also seconded staff to UKCMRI Ltd, forwhich it obtained reimbursement of £46,000 in the year (2011: £46,000). The share of net assets and net result abovehave been derived from the unaudited draft accounts of UKCMRI Ltd.1 2011 included a loss on associate of £0.3 million for onCore UK which was formally closed on 28 February 2011.cancerresearchuk.org

40 | Financial statements | Notes to the AccountsNotes to the Accounts(continued)16. Investments in subsidiariesOther GroupCharity companiesName Control interest interest ActivitiesBeatson Technology Ltd D 100% Technology developmentCancer Research Campaign (Jersey Trust Fund) D 100% CharitableCancer Research Campaign Promotions Ltd SC 100% DormantCancer Research Campaign Technology Ltd SC 100% DormantCancer Research N. Ireland Ltd SC 100% DormantCancer Research Technology Inc SC 100% Technology developmentCancer Research Technology Ltd SC 100% Technology developmentCancer Research Technology Transfer Ltd SC 100% DormantCancer Research UK Guernsey Ltd SC 100% DormantCancer Research UK Pension Trustee Ltd SC 100% DormantCancer Research UK Scotland Ltd SC 100% DormantCancer Research UK Trading Ltd SC 100% Income generationCancer Research Ventures Ltd SC 100% DormantGibb Research Fellowship Endowment Fund D 100% CharitableImperial Cancer Research Fund D 100% CharitableImperial Cancer Research Fund Trading Ltd SC 100% DormantImperial Cancer Research Technology Ltd SC 100% DormantNorth of England Cancer Research Campaign D 100% DormantRelay for Life Ltd SC 100% DormantThe Beatson Institute for Cancer Research D 100% CharitableThe Cancer Research Campaign D 100% CharitableThe Nuffield Research Fellowship D 100% CharitableUK Centre for Medical Research and Innovation Ltd SC 100% DormantWar on Cancer D 100% CharitableControl: D = deemed, SC = share capitalThe Beatson Institute for Cancer Research, Beatson Technology Ltd and Cancer Research UK Scotland are incorporatedin Scotland. Cancer Research Campaign (Jersey Trust Fund) is established in Jersey. Cancer Research N. Ireland Ltd isincorporated in Northern Ireland. Cancer Research UK Guernsey Ltd is incorporated in Guernsey. Cancer ResearchTechnology Inc is incorporated in the state of Delaware in the United States of America. All other entities areincorporated or registered in England and Wales.

Annual Report and Accounts 2011/12 | 41The summarised financial information of the subsidiary undertakings that are material to the Group is provided below:a) Trading subsidiaries – activities for generating fundsCancer Research UKTrading Ltd2012 2011£m £mTurnover 21.8 23.0Cost of sales (19.9) (22.1)Profit on ordinary activities before Gift Aid and taxation 1.9 0.9Gift Aid payable to Cancer Research UK (1.9) (0.9)Retained profit for the year – –Assets 5.4 6.3Liabilities (5.4) (6.3)Net assets – –b) Trading subsidiaries – activities in furtherance of the Group’s objectsCancer ResearchTechnology Ltd2012 2011£m £mTurnover 36.7 32.7Cost of sales (32.5) (30.6)Profit on ordinary activities before Gift Aid and taxation 4.2 2.1Gift Aid payable to Cancer Research UK (2.2) (1.1)Retained profit for the year 2.0 1.0Assets 33.5 27.2Liabilities (21.3) (17.0)Net assets 12.2 10.2cancerresearchuk.org

42 | Financial statements | Notes to the AccountsNotes to the Accounts(continued)16. Investments in subsidiaries (continued)c) Charitable subsidiariesThe Beatson Institutefor Cancer ResearchThe Gibb ResearchFellowship Endowment Fund2012 2011 2012 2011£m £m £m £mTotal incoming resources 20.9 20.5 0.1 0.1Total charitable expenditure (19.0) (16.6) (0.1) (0.5)Total resources generated/(expended) 1.9 3.9 – (0.4)Net gains on investments – 0.3 0.1 0.2Net movement in funds 1.9 4.2 0.1 (0.2)Assets 25.2 22.9 4.9 4.9Liabilities (4.1) (3.7) (1.0) (1.1)Net assets 21.1 19.2 3.9 3.8Imperial CancerResearch FundThe CancerResearch Campaign2012 2011 2012 2011£m £m £m £mTotal incoming resources 31.6 32.5 25.7 27.3Transfer of funds to Cancer Research UK (31.6) (32.5) (25.7) (27.3)Net movement in funds – – – –Net assets – – – –17. DebtorsGroup Group Charity Charity2012 2011 2012 2011£m £m £m £mTrade debtors 4.6 5.4 3.1 4.4Amounts owed from Group undertakings – – 4.0 4.9Taxation recoverable 12.9 10.3 12.9 10.4Other debtors 1.7 1.8 1.5 1.5Prepayments 9.9 10.9 9.2 10.0Accrued legacy income 75.9 80.7 75.9 80.7Other accrued income 15.1 9.3 4.0 3.3120.1 118.4 110.6 115.2Other debtors include balances due after more than one year of £0.8 million (2011: £0.9 million). Some accrued legacyincome may be received after more than one year, but this has not been estimated due to uncertainty in the timing ofthe receipt of such income. The Charity has made a loan to its trading subsidiary company Cancer Research TechnologyLtd (CRT) amounting to £1 million. The loan is secured on the assets of CRT, excluding intellectual property, and attractsinterest at base rate plus 1%. The amount outstanding is repayable in full on 31 March 2015 or on 13 calendar months’notice from the Charity.

Annual Report and Accounts 2011/12 | 4318a) Creditors: amounts falling due within one yearGroup Group Charity Charity2012 2011 2012 2011£m £m £m £mResearch grants payable 135.6 127.1 135.4 127.1Life chairs and fellowships 0.4 0.8 0.1 0.5Trade creditors 12.0 9.2 8.8 6.6Amounts owed to Group undertakings – – 18.6 20.1Tax and social security creditors 4.1 4.4 4.0 4.3Other creditors 1.7 2.1 1.5 2.0Accruals 27.8 27.7 15.4 19.2Deferred income 20.0 19.8 16.5 15.1201.6 191.1 200.3 194.9During the year, £15.1 million of deferred income was released; £15.3 million of income was deferred. The £20 milliondeferred income includes £9.2 million of deferred grants income.18b) Creditors: amounts falling due after more than one yearGroup Group Charity Charity2012 2011 2012 2011£m £m £m £mGrants payable – research grants 55.0 52.6 55.0 52.6Life chairs and fellowships 2.2 6.4 1.9 5.757.2 59.0 56.9 58.319. Provisions for liabilities and chargesProperties Research Other Group Charity£m £m £m £m £mAt 1 April 2011 4.8 0.4 0.7 5.9 5.7Charged to the SOFA 1.1 1.6 0.6 3.3 3.2Used during the year (1.6) – (0.7) (2.3) (2.1)At 31 March 2012 4.3 2.0 0.6 6.9 6.8The properties provision comprises:net rental costs of vacant offices and shops until they are reasonably expected to be sublet or otherwise disposed of;anddilapidation costs of offices and shops where the planned exit from the property has been confirmed before theyear-end date.The research provision includes accelerated depreciation on assets that are expected to be transferred to The FrancisCrick Institute.cancerresearchuk.org

44 | Financial statements | Notes to the AccountsNotes to the Accounts(continued)20. PensionsCancer Research UK operates a defined benefit pension scheme, a defined contribution pension scheme, and participatesin three other schemes. All of these schemes are contracted out of the State Second Pension (S2P).a) Defined benefit scheme – Cancer Research UK Pension SchemeThis scheme is closed to new members. During the year the Group’s employer contribution rates as a percentageof members’ salaries ranged from 19.1% to 26.1%. In addition the Group contributed 2.4% of salaries for ‘Stakeholdermembers’ and 0.2% of salaries for members covered for lump sum death in service benefits only. The Group expectsto pay contributions at 18.1% to 26.1% for the year to 31 March 2013.Principal actuarial assumptionsThe tables below state the FRS17 actuarial assumptions upon which the valuation of the scheme was based.Valuation at 31 March2012 2011Rate of increase in salaries (excluding promotional scale) 3.9% 4.1%Rate of increase to pensions in payment 3.3% 3.5%Rate used to discount scheme liabilities 5.1% 5.6%Rate of future price inflation – RPI 3.4% 3.6%Rate of future price inflation – CPI 2.4% 3.1%Expected return on scheme assets 5.4% 6.2%The demographic assumptions are the same as those adopted for the last actuarial funding valuation, except for thepost-retirement mortality assumption. On the advice of our actuarial consultants, this now uses the self-administeredpension schemes (‘SAPS’) mortality tables with future improvements in line with the Continuous Mortality InvestigationsCore projection model (CMI_2011 (Core)) with a long-term rate of improvement of 1.25% p.a. This is a new set oftables based on the mortality experience of other self-administered final salary pension schemes, which are of greaterrelevance to the scheme’s membership than the PA92 base tables that were used previously. The life expectancies usedto determine benefit obligations are as follows:31 March 2012 31 March 2011Male Female Male FemaleMember aged 65 (current life expectancy) 22.4 24.6 22.7 25.8Member aged 45 (life expectancy at 65) 24.1 26.6 24.5 27.8

Annual Report and Accounts 2011/12 | 45Movements in the SOFA2012 2011£m £mCurrent service cost 9.7 8.8Interest cost on scheme liabilities 20.9 20.6Expected return on assets in the scheme (21.3) (19.4)Past service cost – 0.2Net finance (credit)/charge (0.4) 1.4Total pension cost recognised in the SOFA 9.3 10.2Actuarial (losses)/gains recognised in the SOFA (0.2) 13.6Movement in scheme assets, liabilities and surplus/deficitPresentFair value value of Surplus/of assets (liabilities) (deficit)£m £m £mAt 1 April 2011 359.6 (375.1) (15.5)Current service cost charged to the SOFA – (9.7) (9.7)Expected return on scheme assets 21.3 – 21.3Interest cost – (20.9) (20.9)Net finance (credit)/charge 21.3 (20.9) 0.4Actuarial gains/(losses) in the year 12.2 (12.4) (0.2)Employer contributions paid 19.0 – 19.0Contributions by participants 0.1 (0.1) –Benefits paid to participants (14.5) 14.5 –At 31 March 2012 397.7 (403.7) (6.0)The actual return on scheme assets for the year was a gain of £33.5 million (2011: £24.9 million gain). Contributions byemployer include deficit contributions of £8 million (2011: £8 million).cancerresearchuk.org

46 | Financial statements | Notes to the AccountsNotes to the Accounts(continued)20. Pensions (continued)The analysis of scheme assets at the balance sheet date was as follows:Fair value of assets2012 2011£m £mEquities 202.8 215.8Bonds 159.1 111.5Property 31.8 28.7Cash 4.0 3.6Total assets 397.7 359.6None of the scheme’s assets are invested in any property or other assets currently used by the Group. The expectedlong-term rate of return on assets assumption for the portfolio is 5.4% for the year to 31 March 2013 (2012: 6.2%).Five-year history of experience adjustments2012 2011 2010 2009 2008£m £m £m £m £mActual return less expected return on assets 12.2 5.5 57.3 (63.5) (19.9)Percentage of scheme assets 3% 2% 18% (26%) (7%)Experience adjustments on scheme liabilities – – (13.6) 1.3 (0.4)Percentage of scheme liabilities 0% 0% (4%) 1% (0%)£m £m £m £m £mTotal fair value of scheme assets 397.7 359.6 324.4 247.1 290.1Present value of scheme liabilities (403.7) (375.1) (360.9) (251.0) (294.6)Net pension liability (6.0) (15.5) (36.5) (3.9) (4.5)Pensions payable by annuities held with Prudential have been excluded from the assets and liabilities of the CancerResearch UK Pension Scheme, as the value of these annuities (which is between £0.5 million and £1 million) equals thevalue of the pension liabilities they cover under FRS17. Also, as the future return on these annuities is assumed to beequal to the future increase in the value of the corresponding pension liabilities, this has no impact on the pension chargeto the SOFA.

Annual Report and Accounts 2011/12 | 47(b) Defined contribution scheme – Cancer Research UK Retirement PlanNew employees are entitled to join this scheme. Employer contributions at the year end varied, depending on theemployee’s own contributions.(c) Other pension schemes accounted for as defined contribution schemesThe following multi-employer schemes are accounted for as defined contribution schemes as the Group is unable toidentify its share of the underlying assets and liabilities on a reasonable and consistent basis.(i) NHS Pension SchemeA statutory unfunded multi-employer defined benefit scheme. 13 employees were members at 31 March 2012 (2011: 12).(ii) Scottish NHS Pension SchemeA statutory unfunded multi-employer defined benefit scheme. 28 employees were members at 31 March 2012 (2011: 29).(iii) Universities Superannuation SchemeAn externally funded multi-employer defined benefit scheme. 166 employees were members at 31 March 2012(2011: 146). At the latest actuarial valuation of the scheme at 31 March 2008, the assets were sufficient to cover 103% ofthe benefits that had accrued to members.The employer contribution rates at the year end and the employer’s total pension contributions made during the financialyear in respect of these schemes were as follows:2012 2012 2011 2011Rate £m Rate £mCancer Research UK Retirement Plan 1-16% 2.4 1-14% 1.6NHS Pension Scheme 14% – 14% 0.1Scottish NHS Pension Scheme 13.5% 0.1 13.5% 0.1Universities Superannuation Scheme 16% 0.9 16% 0.7Defined contribution pension charge in the SOFA 3.4 2.5Contributions that were outstanding at the year-end in respect of these schemes amounted to £0.3 million(2011: £0.3 million).cancerresearchuk.org

48 | Financial statements | Notes to the AccountsNotes to the Accounts(continued)21. Operating leasesThe Group and Charity are committed to payments in the year to 31 March 2013 under non-cancellable operating leases,which expire as follows:Group Group Charity Charity2012 2011 2012 2011£m £m £m £mLand and buildingsWithin one year 1.3 1.5 1.0 1.3Between one and five years 6.4 7.9 6.4 7.4After five years 9.9 3.7 9.9 3.7Total 17.6 13.1 17.3 12.4Vehicles and equipmentWithin one year 0.1 0.1 0.1 0.1Between one and five years 1.5 0.7 1.5 0.7Total 1.6 0.8 1.6 0.822. 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.23. CommitmentsAs at the year end, the Group had contracted but not provided for future capital expenditure on specific projects of£1.6 million (2011: £5.6 million). This relates to the Beatson Institute for Cancer Research’s expansion of its BiologicalServices Unit. In addition, the Group has a share in the capital commitments of UKCMRI Ltd at 31 March 2012amounting to £19.5 million (2011: £21.5 million). In total the Group expects to contribute £160 million towards thecost of the project, of which £45 million has been invested at 31 March 2012. Cancer Research Technology Limited hasa commitment to contribute up to £12.3 million of loan capital to the CRT Pioneer Fund over the next five years.

Annual Report and Accounts 2011/12 | 4924. Restricted and endowment fundsBalance at Net Transfers Balance at1 April Incoming Resources investment between 31 March2011 resources expended gains funds 2012£m £m £m £m £m £mRestricted fundsRestricted funds for researchUKCMRI – 10.8 – – (10.0) 0.8Grants for specific projects – 8.8 (8.6) – – 0.2Breast cancer research – 3.0 (3.0) – – –Bobby Moore Fund (0.8) 1.4 (1.5) – – (0.9)Ballesteros brain cancer research – 1.2 (1.2) – – –Basic research – 1.1 (1.1) – – –MGA giving club – 1.0 (1.0) – – –Research in Scotland – 0.9 (0.9) – – –Paterson Institute – 0.7 (0.7) – – –ICGC Prostate – 0.7 (0.7) – – –Manchester appeal – 0.6 – – – 0.6Bowel cancer research – 0.6 (0.6) – – –Other restricted fundsIntangible income – 2.1 (2.1) – – –Sunsmart – 1.9 (1.9) – – –NCRI conference funding – 1.2 (1.1) – – 0.1Sundry other funds 0.6 11.7 (12.1) – – 0.2Total restricted funds – Charity (0.2) 47.7 (36.5) – (10.0) 1.0Gibb Research Fellowship Endowment Fund – – (0.1) – 0.1 –The Nuffield Research Fellowship 0.1 – – – – 0.1The Beatson Institute for Cancer Research 14.4 2.8 (19.0) – 18.9 17.1Intangible income – 0.3 (0.3) – – –Total restricted funds – Group 14.3 50.8 (55.9) – 9.0 18.2Permanent endowment fundsTotal endowment funds – Charity 1.8 0.2 – – (2.0) –Gibb Research Fellowship Endowment Fund 3.7 0.1 – 0.2 (0.1) 3.9Total endowment funds – Group 5.5 0.3 – 0.2 (2.1) 3.9Total – Group 19.8 51.1 (55.9) 0.2 6.9 22.1The net assets of the Beatson Institute for Cancer Research at 31 March 2012 of £21.1 million (Note 16c) are offsetby the negative goodwill in the balance sheet of £4 million (Note 12). Transfers in from general funds of £6.9 millioncomprise £18.9 million of grants awarded to the Beatson, less £10 million application of funds to programme-relatedinvestment in UKCMRI and £2 million of endowment funds released, as approved by the Charity Commission.cancerresearchuk.org

50 | Financial statements | Notes to the AccountsNotes to the Accounts(continued)24. Restricted and endowment funds (continued)FundUKCMRIGrants for specific projectsBreast cancer researchBobby Moore FundBallesteros brain cancer researchBasic researchMGA giving clubResearch in ScotlandPaterson InstituteICGC ProstateManchester appealBowel cancer researchIntangible incomeSunsmartNCRI conference fundingSundry other fundsGibb Research Fellowship Endowment FundThe Nuffield Research FellowshipThe Beatson Institute for Cancer ResearchTotal endowment funds – CharityPurpose and restriction in useConstruction and establishment of The Francis Crick InstituteGrants awarded for specific research projectsResearch relating to breast cancerSpecific bowel cancer research and awareness projectsResearch relating to brain cancerLaboratory research into normal and cancerous cellsStratified Medicine, oesophageal cancer and genomicsResearch in ScotlandResearch Institute in ManchesterThe International Cancer Genome ConsortiumConstruction and establishment of the Manchester CancerResearch CentreResearch relating to bowel cancerDonations in kind received for specific purposesInformation on skin cancer and sun protectionCancer conferencesCore activities such as research, patient and health informationFellowships and/or studentships for cancer researchResearch and study into radiobiologyResearch and investigation into the causes, mechanisms and treatmentof cancerCancer research in the UK

Annual Report and Accounts 2011/12 | 5125. Unrestricted fundsa) GroupPensionTotalGeneral surplus/ unrestrictedfunds (deficit) funds£m £m £mFunds/(deficit) at 1 April 2011 181.6 (15.5) 166.1Net incoming/(outgoing) resources before transfers 8.4 (9.3) (0.9)Transfers between funds (25.9) 19.0 (6.9)Net gains on investments 1.2 – 1.2Net loss on associate (0.2) – (0.2)Actuarial losses on pensions – (0.2) (0.2)Funds at 31 March 2012 165.1 (6.0) 159.1b) CharityPensionTotalGeneral surplus/ unrestrictedfunds (deficit) funds£m £m £mFunds/(deficit) at 1 April 2011 166.1 (15.5) 150.6Net (outgoing)/incoming resources before transfers (10.5) (9.3) (19.8)Transfers between funds (7.0) 19.0 12.0Net gains on investments 1.2 – 1.2Actuarial losses on pensions – (0.2) (0.2)Funds at 31 March 2012 149.8 (6.0) 143.8Included within general funds are the following amounts: revaluation reserve relating to cumulative net unrealised gainson revalued investments of £0.9 million (2011: £0.5 million losses); and undistributed profits from trading subsidiaries of£12.2 million (2011: £10.2 million).cancerresearchuk.org

52 | Financial statements | Notes to the AccountsNotes to the Accounts(continued)26. Analysis of net assets between fundsa) GroupGeneral Pension Restricted Endowmentfunds fund funds funds Total£m £m £m £m £mFixed assetsNegative goodwill – – (4.0) – (4.0)Tangible fixed assets 79.8 – 16.8 – 96.6Investments 105.0 – 0.8 4.8 110.6184.8 – 13.6 4.8 203.2Current assets 229.8 – 19.8 0.1 249.7Current and long-term liabilities and provisions (249.5) – (15.2) (1.0) (265.7)Pension deficit – (6.0) – – (6.0)Total net assets/(liabilities) 165.1 (6.0) 18.2 3.9 181.2b) CharityGeneral Pension Restricted Endowmentfunds fund funds funds Total£m £m £m £m £mFixed assetsTangible fixed assets 79.0 – – – 79.0Investments 104.7 – – – 104.7183.7 – – – 183.7Current assets 219.0 – 12.1 – 231.1Current and long-term liabilities and provisions (252.9) – (11.1) – (264.0)Pension deficit – (6.0) – – (6.0)Total net assets/(liabilities) 149.8 (6.0) 1.0 – 144.8

Annual Report and Accounts 2011/12 | 5327. Funding committee members receiving grantsListed below are scientists who both served on grant-making committees and led research projects that received grantfunding from the Group during the year. They are set out below by institution of employment.Cambridge University Hospitals NHS TrustCardiff UniversityImperial College LondonInstitute of Cancer ResearchKing’s College LondonNewcastle UniversityPaterson Institute for Cancer ResearchPublic Health AgencyQueen Mary, University of LondonUniversity College LondonUniversity of BathUniversity of BirminghamUniversity of BristolUniversity of CambridgeUniversity of EdinburghUniversity of GlasgowUniversity of LeedsUniversity of LiverpoolUniversity of ManchesterUniversity of OxfordUniversity of SouthamptonUniversity of St AndrewsUniversity of SussexP CorrieA ClarkeE Aboagye*, R Brown, R C Coombes, P Freemont, H Gabra, A PearsonJ D Bono, R Eeles*, E Hall, A Horwich, K Harrington, M Leach*A PurushothamA Hall, R Griffin, R Plummer, J VormoorC Dive, N Jones, R Marais*R WilsonJ Gribben, K Hodivala-Dilke, L Jones, N Lemoine, P Sasieni,B VanhaesebroeckD Sebag-Montefiore, J Timms, J WardleL BauldP Johnson*, D Morton, P NathanR MartinF Gilbert, J Pines, B Ponder, S TavaréD Cameron, M FrameJ Evans, K OienR E Banks, T Bishop, M Garrett, H Grabsch, A Melcher, M SeymourT Jones, A PettittM Ranson, A SharrocksA Kiltie, G McKenna*M Glennie, P Johnson, C Ottensmeier, J PrimroseS HerringtonK Caldecott*Scientists who headed projects that received grant awards in excess of £1 million in the year.Scientists 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.The group paid £69,000 in the year under a grant to Professor Alan Clarke of Cardiff University for a project on whichProfessor Adrian Bird, a Trustee, is a co-investigator.Professor Peter Johnson, Chief Clinician, is a member of both the Charity’s Executive and Scientific Executive Boards.Professor Nic Jones, Chief Scientist, is a member of both the Charity’s Executive and Scientific Executive Boards and is alsoa fellow of the Gibb Research Fellowship Endowment Fund.28. Related party transactionsThe Group has taken advantage of the exemption available under FRS8 ‘Related Party Transactions’ that permits nondisclosureof transactions with wholly-owned Group undertakings that are eliminated on consolidation. Related partydisclosures concerning the associate are set out in Note 15. Related party disclosures concerning grant awards are shownin Note 27. Because of the diverse nature of the relationships connecting the Group, its officers and other parties, it isnot possible to itemise all other related party transactions that may exist. However, there are no significant undisclosedtransactions between related parties. Such transactions are conducted on an arm’s length basis.cancerresearchuk.org

54 | Legal and administrative details | Find out more and get involvedLegal and administrative detailsFinancial statementsThe financial statements comply with the Statement of Recommended Practice (SORP) – Accounting and Reporting byCharities as revised in 2005, the Charities Act 2011, the Companies Act (2006), the Charities and Investment (Scotland)Act 2005 and the Charities Accounts (Scotland) Regulations 2006, as amended.Charity statusThe Charity has a maximum permitted membership of 100. There are currently 93 Members, of which 11 are Trustees(see pages 17 and 18). Each Member guarantees to contribute up to one pound sterling (£1) to the Charity’s debts,liabilities and costs in the event of the Charity being wound up and for one year after ceasing to be a Member.Charity objectsThe Charity’s objects are to protect and promote the health of the public in particular by research into the nature, causes,diagnosis, prevention, treatment and cure of all forms of cancer, including the development of findings of research intothe practical applications for the prevention, treatment and cure of cancer and, in furtherance of that primary object, toprovide information and raise public understanding of such matters.Governing documentCancer Research UK is governed by its Memorandum and Articles of Association. Cancer Research UK also operatesunder the following names: Cancer Research UK Scotland, Cancer Research UK Cymru, Cancer Research UK Jersey,Cancer Research UK Guernsey and Cancer Research Northern Ireland.Company number4325234Charity number1089464 in England and WalesSC041666 in ScotlandRegistered officeAngel Building, 407 St John Street, London EC1V 4ADPatronHer Majesty The QueenJoint PresidentsHRH The Duke of Gloucester, KG, GCVOHRH Princess Alexandra the Hon. Lady Ogilvy, KG, GCVOCompany SecretaryRosanna Roughley LLB SolicitorBankersNatWest Bank Plc, Aldwych Branch, Connaught House,65 Aldwych, London WC2B 4EJAuditorsPricewaterhouseCoopers LLP, 7 More London Riverside, London SE1 2RTSolicitorsWithers LLP, 16 Old Bailey, London EC4M 7EG

Annual Report and Accounts 2011/12 | 55Find out more and get involvedCancer Research UKVisit our websiteFor everything there is to knowabout Cancer Research UK,the work we do, and howyou can support us.cancerresearchuk.orgAsk us questionsor tell us what you thinkIf you have a question or acomment about our work,we’d love to hear from you.Call our Supporter Servicesteam on 0300 123 1861 orsend us a message throughour website.Cancer – prevention,treatment and careGet reliable informationabout cancerIf you’re looking for informationabout cancer that’s up-to-dateand easy to understand, visitour CancerHelp UK website.You can find out about cancertrials and research here too.cancerhelp.cancerresearchuk.orgSpeak to a specialist nurseWe have a team of specialistcancer nurses who can answeryour questions in confidence.Call free on 0808 800 4040,Monday to Friday, 9am to 5pm.Or email using the contactform on CancerHelp UKHow you can helpTake partDiscover all the different waysyou can get involved withfundraising and volunteering.supportus.cancerresearchuk.orgMake a donationRegular donations can makea real difference to helping usbeat cancer.Please call 0800 917 1602to donate or visit our website.supportus.cancerresearchuk.org/donateTalk to others affectedby cancerOur online discussion forumCancer Chat is your space totalk to other people affectedby cancer, share experiencesand find information.cancerchat.org.ukCancer Research UK has committedto a series of social and environmental goals.You can find out more about these ataboutus.cancerresearchuk.org/sustainabilityPrinted on 9 Lives Offset 100% recycledpaper with environmentally credible printingtechnology and using inks made from vegetablebased oils. Printer is carbon neutral and UKAScertified ISO 14001Design: NBPrint: Geoff Neal Litho LimitedCopyright © 2012 Cancer Research UK

Cancer Research UKRegistered address:Angel Building407 St John StreetLondon EC1V 4ADT: +44(0)20 7242 0200cancerresearchuk.orgLF014A PDF of both our Annual Report and Accountsand Annual Review can be downloaded ataboutus.cancerresearchuk.org/our-annual-publications