Report of the Trustees and Accounts for year ended 31 March 2014

Leukaemia & Lymphoma Research 1

Notes to the Accounts for the year ended 31 March 2014

HOW WE’RE

BEATING BLOOD

CANCER Report of the Trustees and Accounts for year ended 31 March 2014


Report of the Trustees for the year ended 31 March 2014

CONTENTS

PAGE

Thank you from our chairman

4

Strategic Report

7

FINANCIAL REVIEW

22

HOW WE WORK

29

statement of trustee responsibilities

34

independent auditor’s report

35

GROUP STATEMENT OF FINANCIAL ACTIVITIES

37

Balance sheets

39

cash flow

40

accounting policies

41

notes to the accounts

43

Leukaemia & Lymphoma Research Company limited by guarantee 738089 Registered charity 216032 (England & Wales) SC037529 (Scotland)



Our belief is that life is a gift to be used wisely and lived fiercely. It is a sharp reminder that every moment counts and we should live our lives to the full. Pelham Allen, Chairman


Leukaemia & Lymphoma Research 4 Report of the Trustees for the year ended 31 March 2014

THANK YOU FROM OUR CHAIRMAN Our most successful fundraising year ever Our belief is that ‘life is a gift to be used wisely and lived fiercely’. It is inspired by the patients and families we are doing our utmost to help and is a sharp reminder that every moment counts, time is precious, and we should live our lives to the full while we have the opportunity. That is certainly true of all of the inspiring people I have already met who are contributing to the success of Leukaemia & Lymphoma Research. I feel very privileged, as a former lymphoma patient, to be joining this unique charity as Chairman at this very exciting time. I am very mindful of the fact that back in 1960 when this charity began, sadly few people diagnosed with a blood cancer survived. There is no doubt that for the early pioneers, the fundraisers, the researchers, the clinicians and for the patients themselves, patience was required. Results were hard won and took time, and courage was needed to keep going and do the right thing even though it must have been incredibly hard and often disheartening.

There is a sense of real excitement about the progress we know we will make in the near future; progress that will change patients’ lives and alleviate the anxiety of family and friends. Our mission is to stop people dying from blood cancer; make patients’ lives better and to stop people getting blood cancer in the first place. I hope you are inspired by the progress we have made in the last 12 months, and as delighted as I am that this has been our most successful fundraising year ever – thank you very much to your support. We will not stop until we have beaten blood cancer. With kind regards,

Pelham Allen Chairman

But now, after 54 years, the impact of all of that effort is clear. Our understanding of the biology of blood cancers is unparalleled in the world of cancer research. Developments in technology, computing power and data are driving us forward with unstoppable momentum and we are well placed to respond to this changing world. Researchers, clinicians and nurses are at the heart of what we do, but these days we are just as likely to be working with physicists, data analysts, mathematicians and product developers to drive forward impact for patients.



YOU’RE NOT ALONE Blood cancers are a problem, there’s no doubt about that. Blood cancers represent one in ten of all new cancer diagnoses – this means that each year 38,000 people are diagnosed with blood cancers and closely related conditions. Each year, around 12,000 lives are lost… far too many. If you’re diagnosed with blood cancer you need to know there are people who can help. You want to know what it means, what’s going to happen, what the treatment is like and what your chances of living a normal life are. You need to know someone is there for you. Leukaemia & Lymphoma Research plays a vital role working in collaboration with health professionals, the NHS, government, pharmaceutical companies and other charities to ensure that the needs of blood cancer patients are addressed. We take a leading role in research into blood cancers; we ensure patients have access to innovative clinical trials where possible; we provide information; and we’re a voice of influence when it really counts. This means no blood cancer patient ever needs to feel alone. We have more than 1,000 researchers, clinicians and nurses making sure that our research has a clear line of sight to improving patients’ lives. Our patient services team is backed up by a medical advisory panel of more than 30 clinicians, who give their time freely to make sure our information is appropriate, accurate and always up to date. We listen to patients through focus groups and we seek feedback on our services. We ensure that when our expert knowledge counts, we speak to the people in the right places to influence decisions. We support a community of thousands of individuals, families and friends who have their own experience of blood cancer and we create a safe space for patients to share their worries and also see that there can be light at the end of the tunnel.

Impact Day 2014



blood cancers Blood cancer is a form of cancer which attacks the blood, bone marrow, lymphatic system or combinations of these systems. The most common groups of blood cancer are leukaemia, lymphoma, myeloma and myeloproliferative neoplasms, but as you can see from our incidence chart, there are many different types within each group that require very different approaches.

Incidence An important advance in our understanding of blood cancers is our ability to understand which cells are most affected in each cancer and therefore give more accurate diagnoses. With the development of DNA sequencing, we’re beginning to know even more about the complex architecture of cancer and understand the heterogeneity (non-uniform nature) of each patient’s disease.

All Haematological Neoplasm Total

37,590

Leukaemia

8,770

Acute myeloid leukaemia

2,520

Chronic lymphocytic leukaemia (CLL)

4,050

Chronic myelomonocytic leukaemia

450

Precursor B-lymphoblastic leukaemia

540

Chronic myelogenous leukaemia

560

precursor T-lymphoblastic leukaemia

170

T-cell leukaemia

240

Hairy cell leukaemia

190

Non-Hodgkin lymphoma

10,120

Diffuse large B-cell lymphoma

4,900

Systematic marginal zone lymphoma

1,580

Mantle cell lymphoma

500

T-cell lymphoma

610

Follicular lymphoma

1,890

Burkitt lymphoma

210

Extranodal marginal zone lymphoma

210

Hodgkin lymphoma

1,720

Classical Hodgkin lymphoma

1,520

Lymphocyte predominant nodular Hodgkin lymphoma

200

Myeloma

4,240

Plasma cell myeloma

3,920

Plasmacytoma Myelodysplastic syndromes Other neoplasms

Cells under microscope

Expected no. of cases

330 2,180 18,560

Monoclonal gammopathy of undetermined significance

4,080

Myeloproliferative neoplasms

3,650

Lymphoproliferative disorders NOS

1,170

Monoclonal B-cell lymphocytosis

1,620

With thanks to HMRN to the statistics shown on this page hmrn.org/statistics/incidence


Leukaemia & Lymphoma Research 7 Strategic report

STRATEGIC REPORT

Leukaemia & Lymphoma Research Company limited by guarantee 738089 Impact Day 2014

Registered charity 216032 (England & Wales) SC037529 (Scotland)


Strategic report

Our Strategy With greater understanding comes more opportunity than ever before to beat blood cancers and therefore we have to have the ability to make important choices.

We’ll know if we’re succeeding in achieving our mission if we’re doing these five things:

We want to do even more for patients, even more effectively. Because of this, during the year the Trustees approved a revision and finalisation of our strategic plan. We need to be agile and responsive to a rapidly changing environment; indeed change is constant.

› Driving smarter and faster diagnosis

The final version of our strategy ‘An integrated approach to accelerating patient impact 2014–2017’ will shape our activities over the next three years. Our draft plan was originally for five years; the revision is in recognition of our responsiveness to change. Our belief, principles and goals will help us to accelerate progress in achieving our mission to stop people dying from blood cancer; to make patients’ lives better; and to stop people getting blood cancers in the first place.

› Being a voice of influence and championing

› Inspiring new treatments and better care

› Revealing how blood cancer works › Building communities and shared understanding patients’ needs

Our five goals tell us what we do to accelerate impact for patients:

1 We optimise patient impact 2 We achieve a step change in income 3 We leverage resource through partnership 4 We improve our reach, reputation and brand 5 We strengthen the organisation The way we do things is just as important as what we do, if we’re to achieve our ambitions, and retain and build public trust and confidence in all that we do.

Our five principles guide the way we do things:

› I bring all that I am to my work. So does everybody else.

› I’m always searching for better ways to do things big or small

› I work with others to unlock what’s possible › I have the courage to keep going and do what needs to be done even when it’s hard

› I am here to change the world Joe Smale, acute lymphoblastic leukaemia patient



Strategic report

goal 1

Optimising patient impact We began in 1960 as a pure research charity. As our understanding of blood cancers has developed, we’ve broadened our patient impact strategy. All of our research investments have a clear line of sight to patient impact – this can be in the short to much longer term. We’ve dramatically increased our investment in clinical trials over the last four years to give more patients, more equal access to more trials. We’ve recognised the value of our knowledge, experience and expertise in being an effective voice of influence for blood cancer patients through our policy and public affairs team. We offer patient services to help patients feel supported and empowered through their patient journey.

RESEARCH Through our research we want to reveal how blood cancer works. This will help to inspire new treatments and better care, and drive smarter faster diagnosis. Our 54 years of research, combined with the development of new technologies, has seen a huge increase in new discoveries in recent years.

Better treatments; better quality of life It’s thanks to research so vigorously pursued by people like Professor John Goldman, that in the last 15 years the treatment of chronic myeloid leukaemia (CML) has been transformed. After receiving his first grant from us in 1971, John went on to receive a grand total of 19 more, and played a formative role in our research for more than 30 years. In the late nineties, CML was only treatable with a transplant – and only then if you were lucky enough to find a donor and strong enough to survive the treatment. Now, normal life expectancy is restored with a daily drug. John was instrumental in accelerating the progress of this drug (Imatinib) into the clinic – so it only seems right that the last of many roles he held with us before his untimely death in December was also about accelerating the progress of new treatments, as Chair of our Trials Acceleration Programme.

We have more knowledge of the molecular and biological changes that lead to cancer development and progression, and we’re beginning to get a much better understanding of the complex pathways that regulate cancer cells. We’re starting to see how cancer cells can cleverly adapt the environment they live in (the microenvironment) to ensure they have the nutrients to survive and replicate – Developing this understanding will be vital to accelerate progress for myeloma and lymphoma patients especially. We also know more about the mechanisms that normally restrain cell growth, which stop working in cancer. Our researchers are focused on not only enhancing this understanding, but working out how we can use it to improve diagnosis and treatment as quickly as possible.

Professor John Goldman



HIGHLIGHTS FROM THIS YEAR This year, thanks to you, we’ve invested nearly £24 million in new research and trials. It’s been across every disease type and across each type of research. We’ve also seen a move to even more collaboration between groups and we’re actively bringing together different disciplines – for example researchers, clinicians and bio-informaticians – to get people talking and working together. There’s much more information on our website beatingbloodcancer.org.uk, more details about the 59 new grants that we gave in the last year. Grant Giving Policy We receive applications for funding for projects, programmes and career awards three times a year. Project applications are sent out for international peer review before they are considered by the research committee. Training awards are also subject to external peer review, but in addition candidates are called for interview by the Training & Career Development Committee. We work closely with programme grant holders to ensure that their programmes are on track to deliver expected outcomes. Before the end of a programme a special committee is convened of international experts in the area of research concerned. The committee meets to discuss

the progress that has been made and the renewal application and conduct a rigorous site visit at the applicant’s institution. Our Clinical Trials Committee meets twice a year, although the Chairman has discretionary authority for the Committee to consider applications between meetings to ensure that our own internal procedures do not hold back the “Acceleration” in the Trials Acceleration Programme. The Committee also considers Trials Associated Research programmes. Our Trials are considered by the appropriate National Cancer Research Institute (NCRI) Clinical Studies Groups prior to the application being made. Our Committees make recommendations to the Trustees, who consider both the excellence of research and alignment with the mission of Leukaemia & Lymphoma Research in making funding decisions.

This year, thanks to you, we’ve invested nearly £24 million in new research and trials.

aligning awards to our mission Inspiring new treatment and better care 41% Driving smarter and faster diagnosis 12% Revealing how blood cancer works 47%



Revealing how blood cancer works This year we’ve invested £10.5 million in revealing how blood cancer works. This has included investment in investigating the genetic drivers of blood cancers, so we can understand the root genetic cause. We’re looking at the evolution of cancer, and how it develops and changes from a pre-cancerous state, as well as the way cells respond to specific chemicals that cause them to divide. We’re also doing more investigation into the fact that cancer cells have different metabolic needs from normal cells, and can create their own support system by changing their micro-environment. Cutting off these nutrients could be a new target to kill the cancer cells. We’ve made a significant investment in pre-cancerous conditions including myelodysplastic syndromes (MDS) and monoclonal gammopathyy of undetermined significance (MGUS), which are associated with acute leukaemia and myeloma respectively. Revealing how these conditions work may open up the opportunity of prevention and help us stop people getting blood cancer in the first place.

sequencing (NGS) to produce huge amounts of genetic data at relatively low cost, using samples from the HMRN archive. This will create an unparalleled, integrated data set incorporating genetics, patient treatment and patient outcome that will move NGS towards becoming a diagnostic and disease stratification test within health service laboratories. Our investment in smarter faster diagnosis was over £1 million this year, although our investments which look at how blood cancers work will also support progress in this area.

Our predecessors had the foresight to understand the importance of data on patient treatment and outcomes long before it became the huge focus that it is today.

Smarter faster diagnosis Our predecessors had the foresight to understand the importance of data on patient treatment and outcomes long before it became the huge focus that it is today. It’s a great example of the courage and pioneering spirit of Leukaemia & Lymphoma Research at a time when research was largely about people in white coats, that we were able to step back and respond to what was needed in a different way. Our initial investment in patient data collection was at the Epidemiology & Genetics Unit, which was originally based in Leeds. Twenty years later, the National Cancer Intelligence Network describes what has now become the Haematological Malignancy Research Network (HMRN) as ‘a model for population based data collection’. We now plan to build on this and create a step change in world blood cancer data. We’ll achieve this by working with Syncona (a Wellcome Trust investment company), the Sanger Institute and HMRN to form a collaboration that will exploit next generation



Strategic report

NEW AND BETTER TREATMENT

The year ahead

There’s no doubt the improvement we’ve seen in survival from blood cancers is a great achievement, but we won’t stop there. Many treatments are very toxic and can have long-term side effects that permanently compromise quality of life. It’s therefore a priority for us to contribute to the development of cell based therapies that can stop cancer cells from dividing and growing; seek out cancer cells and kill them; and encourage the immune system to attack cancer cells without the use of chemicals that may damage healthy cells too.

The year ahead in research is an exciting one. Following a three year pilot of our Trials Acceleration Programme (TAP), an international review panel will be meeting to review TAP’s achievements and make recommendations to our Trustees about how we can move it from pilot stage to a fully fledged programme. It’s likely that this will mean a new commitment of at least £5 million.

Our research team have been working with the Technology Strategy Board (TSB), who set up the Cell Therapy Catapult to help the UK become a global leader in cell therapy development and commercialisation. The TSB has made a significant commitment of up to £5 million to our Gene Therapy for Adult Acute Leukaemias trial (WT1 TCR). This trial is testing a vaccination which should boost immune cells in adults with acute leukaemia, resulting in cancer cells in the blood being destroyed. This is a form of gene therapy. As this is an early phase trial, it’s largely testing the safety of this new treatment in patients who aren’t responding to other treatments. These collaborations are important because they ensure that blood cancers are a focus for the TSB ‘Catapult’ initiatives and can bring substantial investment and long term benefit to our mission. Imatinib has transformed the lives of chronic myeloid leukaemia (CML) patients over the last 15 years, enabling the majority of patients to have normal life expectancy by taking this daily drug. Consequently, five year survival rates have improved from 30% to more than 90%, with patients also having near normal life expectancy and quality of life. But it still requires patients to take drug every day for the rest of their life. However there’s growing evidence of what appears to be permanent remission achieved through the long term use of imatinib and so our DESTINY trial is testing if it’s safe for some patients to discontinue the drug. At the same time, an associated research project is pioneering an exquisitely sensitive DNA based test to monitor patient response after drug withdrawal, to accurately and quickly pick up those at risk of relapse. We invested more than £10.1 million in new and better treatments over the last year.

Because we’ve focused our research portfolio on translational research over the last few years, we’re reaching the stage where some of the work we fund requires drug development and testing in first in human trials. Our Trustees have fully debated the risks associated with an investment in this area, and are satisfied that the greatest risk would be to not plug this gap in the translation of our research – which could delay patients from benefiting from it. As a consequence, in the coming year we expect to make our first investment in a first in human trial. During the year we’ll be developing ways to prioritise our investment in all patient activities, using our own evidence base being developed through a programme of research called Prioritisation of Patient Need.

There’s no doubt the improvement we’ve seen in survival from blood cancers is a great achievement, but we won’t stop there.



Meet kris Griffin It’s been over six years since my diagnosis of chronic myeloid leukaemia (CML) and thankfully I’m in major molecular remission now. I take my dasatinib tablets daily, follow my consultant’s advice and get on with my blessed life. There are bad days, but everyone has these and there isn’t a day that goes by that I’m not thankful I’m still here. That’s the game changer. It’s like seeing in colour after living in a monotone world. It’s odd to have your health taken away, it makes you live for the moment and appreciate things more... especially Italian red wines, in moderation of course.

My life changed again around just over two years ago. My son, Luca, was born. This was another challenge. I banked sperm on diagnosis and four years ago my wife Kelly and I made the positive decision to go through IVF treatment. Of course it was worth it, even at the 2am feed. I’m looking forward to being Dad for a very long time. CML is a relatively rare disease, only around 650 of us are diagnosed each year in the UK. It is, however, a disease that’s being treated successfully with anticancer drugs. My hope is that similar drugs will be used to treat other cancers in the future – but for this to happen we need more funds for research and clinical trials. We need politicians and governments globally to know about CML, so we can make the battles we fight to access life-saving drugs a little easier.

It’s odd to have your health taken away, it makes you live for the moment and appreciate things more...

Kris with his son Luca



Strategic report

PRIORITISATION OF PATIENT NEED

The year ahead

Two years ago we established an insight function at Leukaemia & Lymphoma Research. The purpose was clear: to provide evidence and insight to ensure that we’re making the best evidence based decisions; decisions that place our patients and our supporters at the heart of all we do.

This year we’re going to be more directly involved with patients than ever before and our insight, patient services, policy and research teams will be working together to drive this programme forward.

This includes our decisions about fundraising, across marketing – and most importantly decisions about how we can have the biggest and most positive impact for patients. In short, how we use evidence to ensure we’re getting the most patient benefit possible from all the money we spend to beat blood cancer. There’s currently no comprehensive source of information that identifies the needs of blood cancer patients. Our Prioritisation of Patient Need (PPN) programme will change that. It will map the needs of patients – all different types of need across all of the different blood cancers – and create a detailed and current picture of provision. We’re doing this in consultation with patients, researchers, clinicians, networks and other organisations that have valuable information to share. This will help us to build an even more robust way to prioritise our work and ensure that through all that we do, and all the money we spend, we’re having the biggest possible impact for patients. We’ll increase our championing of patients’ needs and we’ll use information from PPN to inform and empower patients, as well as the wider blood cancer community. We know we can’t beat blood cancers on our own. PPN will also help us signpost patients to other organisations that can help, reducing duplication and ensuring that we collaborate rather than waste resource.

We know that when patients and families go through the experiences they go through, they themselves become the real experts.

We’ll be launching our first ever patient need survey as part of our PPN programme. It’ll be open to anyone personally affected by blood cancer and will allow us to find out about the thoughts and experiences of as many patients as possible. We’ll also be running focus groups across the UK to understand in more detail the experiences and needs of people affected by blood cancer. We’ve already started these groups in London and talking with patients, families and blood cancer survivors face to face has already given us even more insight into the needs of patients today and in the future. We know that when patients and families go through the experiences they go through, they themselves become the real experts – but we also want to hear from professionals and experts across research, healthcare, government and beyond, the people who work every day to improve the lives of patients. So we’ll be speaking to experts at the very top of their fields in academia, in government, and at other cancer charities. As the data emerges our teams are ready to respond in an agile way. We expect that there will be issues that will drive policy work, most probably around the importance of early diagnosis; our patient services team will use information directly from patients to tailor our services even more; and we’ll be looking at our investment in research to see how we can respond to areas of unmet need. We’ll also share the information with many other organisations to ensure that we maximise the value of the outcomes of this research as quickly as possible for patients.



Strategic report

THE IMPACT PPN WILL HAVE comprehensive map of patient need

Evidence-based decisions that increase patient benefit

Clear picture of current provision

Champion the needs of blood cancer patients

a robust way to prioritise

Inform and empower the blood cancer community

Prioritisation of Patient Need focus group



Strategic report

POLICY AND PUBLIC AFFAIRS

The year ahead

Our policy and public affairs team have really established themselves and made great progress in developing key relationships with decision makers and raising the profile of Leukaemia & Lymphoma Research this year. As we become involved in more patient issues we plan to secure change by providing solutions and working with others.

The year ahead will be about elections; understanding the outcome of the referendum in Scotland and engaging with manifesto teams as each party sets out their policy priorities for the 2015 general election. We’ll engage with all parties to ensure we remain politically independent and it’s likely that we’ll use the issue of incentivising research in the NHS as the ideal link between our expertise and a current policy priority as a starting point for discussions.

During the year we were one of the first charities to meet with the new national Cancer Clinical Director, Sean Duffy. He confirmed that our evidence based approach to the prioritisation of patient need was ‘bang on’ and recognised the importance of our investment in the Haematological Research Network (HMRN) as a significant contribution to the UK’s cancer intelligence. We were the first charity to meet Kit Malthouse, the Deputy Mayor of London for Business and Enterprise, to discuss the Med City initiative. Med City is designed to promote Life Sciences in the capital (linked with Oxford and Cambridge) and is backed with £1.1 million of funding from the Mayor of London. Kit was very interested in how our Trials Acceleration Programme (TAP) is encouraging the pharmaceutical industry, universities and of course Leukaemia & Lymphoma Research to work together with the NHS to accelerate trials for patients. TAP was also presented as a case study to a round table discussion on life sciences at the Conservative Party conference.

Plans are also underway for a third Speaker’s House dinner, where we’ll be discussing the challenges for setting up trials for rare cancers and the need for international clinical trials to be more easily established. We’ll also be holding a reception at Downing Street, kindly hosted by Samantha Cameron, where we’ll discuss the improvements that still need to be made in the treatment and survival of childhood leukaemia, another area where the pressing need for international trials has to be addressed.

Our Speaker’s House dinner, kindly hosted by John Bercow and Alastair Campbell, once again gave us the opportunity to engage with parliamentarians, the heads of the major cancer networks and pharmaceutical partners to discuss TAP’s progress and extend the discussion to its relevance in other disease settings as a paradigm shifting way to deliver early phase trials.

Alastair Campbell and Lord Willis, Speaker’s House dinner



Strategic report

PATIENT SERVICES

the year ahead

As a result of a review of our patient services, during the year we restructured the team to ensure that we had the capacity and experience to engage with patients in a number of different ways and by adding value to existing services from other charities.

The year ahead will be about empowering and enabling this relatively recently established team to extend their reach to patients.

The team have introduced even more robust production and review procedures for our printed patient booklets, both in consultation with clinicians on our newly formed medical advisory panel and with patients. In the last year we sent out 50,000 printed patient information booklets and unique users of our online patient services have increased by 140 % compared with last year.

By listening to patients and by using the evidence emerging from our Prioritisation of Patient Need (PPN) programme of research the team will be able to respond in an agile way to any areas of unmet need which emerge. The team will also be very active in the delivery of the patient and expert opinion strand of research for PPN.

The team restructure has enabled us to appoint a Patient Engagement Manager who has had an active programme of visits with clinicians and patients. We now have the capacity for Leukaemia & Lymphoma Research to represent patients at conferences and forums. Our Patient Engagement Manager and expert patient Kris Griffin represented us at the Chronic Myeloid Leukaemia Horizons Conference, an international conference which enables us to extend our reach and reputation as well as share valuable learning with the international CML community. Towards the end of the year we launched a new online patient services area of our website, a space where patients can find information, share knowledge and experiences and connect with others affected by blood cancer. We’ve piloted a blogging platform for patients, as we believe that writing about blood cancer can be a really beneficial and cathartic process. It helps patients come to terms with their condition and can give them a degree of control back in their lives. We’re very pleased that a large number of patients have already shared their experiences in this way in just a few weeks.

Tryna Staddon, patient



Strategic report

goals 2 and 3

Achieving a step change in income and increasing our reach, reputation and brand OUR SUPPORTERS It’s been a busy year and there is much more information on our website beatingbloodcancers.org.uk about what we’ve been up to.None of our patient activity would have been possible without the support of thousands of people, helping us in the way they love best, raising money! In fact over the past 12 months we’ve seen our highest income for five years. Even more notably, we’ve achieved our best ever fundraised income – £12.7 million. Blood cancers can affect anyone, at any age, anywhere, and this is just as true of our supporters – from small children selling their toys to marathon running grannies. Throughout England, Scotland, Wales and Northern Ireland, we have thousands of supporters ensuring that we can make patients’ lives better, a movement of people creating positive action. We want to do even more for patients in the coming years: there are so many ways we can make patients’ lives better. To do this we need to grow our income even more and we want to do it in a way that people will enjoy and want to be part of. A human approach to fundraising We know people go to work, shop, buy tickets and take part in sports events – and they are all things they can do while supporting us at the same time. We’re also mindful that some ways in which charities raise money are not everyone’s cup of tea. In growing our income we want to appeal to our supporters’ interests in a relevant way, rather than interrupting busy lives. We’re focused on building relationships, which will bring tangible benefits for our supporters as well as for Leukaemia & Lymphoma Research. Using technology to help us raise more So we’ve been developing ways to get to know our supporters and what they like even better. We’ve integrated our customer relationship platform with our website so we can make the most of everything we learn about our supporters, to help our supporters to help us.

Towards the end of this year we launched our own digital fundraising platform, which means once someone has set up a profile on our website we can integrate their blogs, social media activity and fundraising for them, all in one place. Fundraising pages are set up within our own website so we can save some of the costs associated with third party sites. We’re very pleased with the early response.

all of this means that our plans to increase income as well as reach reputation and brand are fully integrated

Highlights from the year Thanks to you, it seems to be working. We’ve had two years of income growth and fundraising income in the last year grew by 19%. Our human centred, rather than transactional approach to fundraising focuses on creating positive experiences and is encouraging more people than ever before to take part in sports; bake cakes; eat whelks; jump off high buildings; shop online; and leave legacies! There are so many wonderful stories to share but one highlight would have to be our partners at Wickes who in this, their seventh year of the partnership with us, still achieved another record-breaking year. From in-store cycle challenges to a supplier dinner at the Roundhouse, from selling our Christmas cards to launching red wheelbarrows and buckets in store, it’s been an unprecedented year of support from this much-valued partner. Innovation was vitally important last year, as we searched for better ways to do things big and small. Another highlight was the launch of a ‘London to Paris’ premium cycle ride, to complement our extensive sports activities – this raised an amazing £400,000 in its first year. The Chief Executive of The Restaurant Group will be taking part in next year’s event and



many of the restaurants have already been actively fundraising and promoting Leukaemia & Lymphoma Research throughout the UK. The most touching fundraising activities are often by people who have had a close personal experience of blood cancer. The ‘no make-up selfie’ phenomena created a 1,000 % increase in donations in just one day, from people simply posting photos of themselves without make up. This included many patients at different stages of their cancer journey. The great thing is that people talk about us too, helping us to reach more people than we could ever reach with advertising campaigns and letters and in a way that costs nothing. Last year we achieved a 64% increase in Facebook fans and a 49% increase in Twitter followers!

Strategic report

The year ahead We want to raise more money to enable us to do even more for patients, so a priority for the year ahead is to finalise a new income generation strategy that will help us to do this in a way that our supporters will enjoy. We’ll be launching a new Birmingham Bikeathon with the support of Birmingham City Council and British Cycling, which we hope will replicate the success of our London event. We’ll be helping our branches to raise even more money and be even more of a public face throughout the UK, with our Small Change Big Impact week of collections. The truth is, however big or small, every single donation, every single contribution counts. We were only able to invest such a substantial amount (nearly £25 million) in making patients’ lives better last year because of you, and in the year ahead we’ll continue to make the most of every single pound that we receive.

London | Paris: Be Unstoppable



Strategic report

goal 4

Working in partnership We know that we can’t beat blood cancers on our own and we value the expertise and knowledge of other individuals and organisations that are helping patients too. We know that we can accelerate impact for patients by working with partners, so we seek partnerships which allow us to:

› leverage more resource – expertise, time, money – to our mission

› find shared solutions › influence others by having an opinion and being a voice of influence

› create a more powerful voice by working with other aligned organisations

The year ahead A big part of making sure we spend our money wisely is knowing when other charities and organisations run excellent services for patients already. Sometimes our role should be a signposting one, rather than trying to duplicate these services. Over the course of the year we’ll be mapping out exactly what services are out there for patients and where the gaps are and we’ll be sharing this information with other organisations. We now have a much better understanding of how we can bring value as a partner in the many cancer networks including the Association of Medical Research Charities (AMRC); the National Cancer Research Institute (NCRI) and the National Cancer Intelligence Network (NCIN) and with others we know we can play a key role in demonstrating the importance of charities in bringing value to the UK life science agenda.

› signpost patients to other organisations that can meet their needs better than we can We work with universities, the NHS, the cancer networks and pharmaceutical companies to unlock what’s possible – with our Trials Acceleration Programme being a great example. Although we are focused on achieving a step change in income, we also recognise that we can do even more for patients by leveraging all kinds of resource to our mission. During the year millions of pounds worth of drugs were donated to our Trials Acceleration Programme (TAP) and our work in partnership with the Cell Therapy Catapult and our partnership with HMRN, Syncona and Wellcome have already been mentioned in this report. Most of all we want to ensure that if we learn something in any area of our business we share it quickly, from our leadership programme to digital development, we want to ensure that we put good back in to the world in every way possible.

Dr Nadar Omidvar, Cardiff Centre of Excellence



Strategic report

goal 5

Strengthening the organisation With this planned growth in income and patient activities comes a responsibility to make sure that our organisation can grow and change. This year we’ve been strengthening the organisation, focusing on our people and ensuring that our organisational tools and processes are such that we can deliver our ambitious plan. We’ve been agile and flexible in our approach to the development of our organisation: we want it to be driven by the people in the business and we need change and development to be a constant if we’re to keep pace with what’s going on around us. Together we’ll develop our behaviours, skills and knowledge to achieve higher performance, because we believe that the experience and talent of our team can give us a unique competitive advantage. And we’ll focus on resolving issues that might hold us back. Our new personal development programme (PDR) is just one example of this. It allows each team member to take control of their own development and make sure their goals are aligned with our broader organisational ones. It’s a programme which has been developed by staff, for staff – and we trained each other on it too! Other areas which we have worked on this year include completing a pay and grading review, and reflecting on our governance. Our governance review has resulted in the appointment of a new Chair and two new Trustees, all of whom bring valuable skills to the organisation.

The year ahead As ever, we have a significant programme of work planned for the year ahead that will help us further strengthen the organisation. Our Trustees will be reviewing our financial risk model; and we’ll be making sure the PDR process is both well embedded and linked appropriately with performance assessment. Following the successful roll out of a self-awareness programme amongst our people managers, all staff will now be offered the opportunity to participate, and learn about themselves and their colleagues. Following a scoping exercise to look at staff training needs, we’ll also be making a series of ‘core skills’ training sessions available. Of course, we also need to gather evidence about whether programmes like these are hitting the mark with staff, and find out if they feel engaged and enthusiastic about their work. So we can do this, we’ll be commissioning our first external staff survey this year. The most appreciated change is very likely to be the redevelopment of our ground floor area – with some simple changes, finally we’ll have a reception area which demonstrates the modern, innovative organisation we know we are.

Strategic Report signed by order of the Trustees

Catherine Gilman Chief Executive & Company Secretary 17 June 2014 Leukaemia & Lymphoma Research staff


Leukaemia & Lymphoma Research 22 Financial review

financial review

Fundraisers, Coventry


Financial review

your support From the very beginning of our charity in 1960 to the present day, we’ve always been largely dependent upon voluntary donations to help patients and thanks to you, we’ve had another year to be proud of. A total incoming resource of £21.7 million is the highest we’ve achieved since our exceptional 50th anniversary year in 2010. Even more encouraging, voluntary income – the income we all work so hard together to achieve – increased by a huge 19%. This was achieved with a 17% increase in fundraising and marketing costs. As some of the increase in voluntary income was achieved with innovative new projects including our London to Paris premium bike ride, this was rather better than expected. With new projects, efficiencies tend to come after the first year, as lessons are learned and participation and consequently income increase. There was improved performance across all income streams.

Fundraisers, Manchester

Thanks to you, we’ve had another year to be proud of

income year 2014 Other 1.5%

High value partnerships 8.1%

Trading 2.7%

Regional 19.7%

Investments 7.1%

Sport 21.8%

Corporate 7.6%

Legacies 31.5%


Financial review

REGIONAL AND BRANCHES

TRADING

Our regional fundraising team raised £4.3 million during the year, which was a 7.5% increase on last year and included a strong performance from our voluntary branches, who managed to maintain their income at £1.5 million.

Income from trading was significantly lower this year although the profit margin increased by 17%. In the previous year income and costs were much higher because of concerts at the Royal Albert Hall, as well as the sale of Calendar Girls merchandise as the show toured the UK. This year’s results represent a more usual year of primarily Christmas trading. We saw growth in sales of cards and gifts and had our best sell through of cards to date at Cards for Good Causes, achieving an impressive 94%. This year we’re introducing all year trading for the first time ever.

SPORTS AND CHALLENGES Our sports and challenges team raised £4.7million during the year, a 20% increase on the previous year, with an exceptional performance in cycling. We achieved our highest income ever of £800,000 from our flagship London Bikeathon event and the first year of London to Paris achieved income of £400,000, which bodes very well for the future.

CORPORATE PARTNERSHIPS The tremendous efforts of our partners at Wickes meant that even after seven years of partnership they were still able to deliver a record year. This was by far the biggest contribution to our total corporate income of £1.7 million.

HIGH VALUE PARTNERSHIPS

INVESTMENT INCOME Investment income has remained surprisingly stable as we’ve deliberately drawn down investments by 9% to enable expenditure on patient activities, as well as on new income generation activities.

INDIVIDUAL GIVINg During the year we set up an individual giving team that will be innovative in its approach to securing individual donations from our supporters and give us the opportunity to grow our income further.

This year we amalgamated philanthropic giving, trusts and special events to create a high value partnerships team, who delivered a 42% increase in income of £1.7 million. We’re especially grateful to Children with Cancer; the Agatha Christie Trust; the Alternative Hair Foundation; Beefy’s Charity Foundation; and the Michael Oglesby Trust for their very generous support.

LEGACIES We are, as always, indebted to those who have left legacies to Leukaemia & Lymphoma Research. It‘s not always possible or affordable to support a charity in the way you may wish during your lifetime; a legacy is an important way to make a lasting contribution which will be reflected in the lives that will be saved in the future. Legacy income this year was £6.8 million and notifications of new legacies – which guarantee the future pipeline of legacy income – have been the highest ever, with a 32% increase on last year.

Collegues from our corporate fundraising partner, Wickes


Financial review

Beating blood cancer Our charitable purpose (see page 30) requires us to support research as well as enhance public understanding of blood cancers, with the purpose of advancing health and saving lives. During the year we were able to invest nearly £25 million in new research commitments, clinical trials and patient activities. This is the gross amount, from which we deduct deferred commitments and unspent funds that remain on completion of existing grants. Deferred commitments are explained on page 48 of this report. Our new research commitments can vary quite substantially from year to year, depending upon the number of programme grant renewals that we make. Programme grants are given for three or five years, which means we need to be mindful of cash flow to accommodate these variations.

Programme grants were once again our largest area of new commitment at £10.8 million. Programmes have the most potential to deliver impact for blood cancer patients. Our project grants are where innovative new ideas start, and build the foundations for future programmes. Our career development awards ensure that we have our very own greenhouse of talent being carefully nurtured to ensure that blood cancer research continues to be led by world class researchers and clinicians. Our investment in clinical trials of just £1.2 million – while appearing small – actually demonstrates the efficiencies of our Trials Acceleration Programme (TAP). Within TAP we fund a co-ordinating, administrative hub throughout the year as well as 13 networked centres. This means that we minimise additional costs in setting up new trials.

new research commitments 2013-2014 Specialist programme 50% Project 25% Career development 15% Clinical trial and related research 10%


Financial review

OUR 2013-14 COMMITMENT BY DISEase type Paediatric 4%

Myelodysplastic syndromes (MDS) 11%

Leukaemia 51%

Myeloproliferative neoplasms (MPD) 1%

Lymphoma 20%

Transplant 2%

Myeloma 4%

Basic 7%

are often made in blood cancers first, but benefit our broader understanding of all cancers. We also invest in improving the effectiveness of transplants and making them more tolerable for people of all ages.

Our investment was made across many different blood cancers, as well as fundamental work in our basic understanding of blood cancers which is relevant to all blood cancers and other diseases too. Discoveries

New research commitment by region Scotland 7%

South West 4%

North 15%

Northern Ireland 1%

Midlands 15%

Wales 9%

South East 49%

Our commitments were made throughout the UK, demonstrating the importance of Leukaemia & Lymphoma Research as both a local and a national charity. As data emerges from our Prioritisation of Patient Need programme (PPN), we’ll use this information as well as consideration of incidence, mortality and morbidity of each blood cancer to even better align and prioritise our new research commitments to areas of greatest patient need.

During the year we invested nearly £1 million in policy and public affairs and patient services, to enhance public understanding of blood cancers and empower patients to be involved in their own treatment decisions.


Financial review

Review of strategic risk model

Reserves policy

As you’ve already read, it’s been a year of great progress in achieving our vision and mission. There are so many opportunities to invest in research, trials and other activities to save and improve patients’ lives right now that we’re looking at every way in which we can invest more for patients.

While our reserves policy is under review, our existing reserves policy requires that to protect against income and investment fluctuations, we must have an operating reserve of at least £5 million and positive net assets. In addition we must have assets to match grant liabilities and hold a liquidity reserve of at least £15 million. During the year we have – as previously stated – deliberately reduced our reserves and at year-end this can be seen in the reduction from £15.5 million to £11.3 million, which is still in line with our current policy.

We’re currently reviewing our own financial rules which to date have required us to have a financial asset for every £1 of research commitment. This rule is very prudent but it also means that at year- end we have investments and cash of £75.7 million. It’s vitally important that we have the ability to pay for our research and other commitments when due, but we must balance this with the risk of missing opportunities to do more for patients. We’ve already taken some steps to release funds from the balance sheet to invest in patient activities. We’ve achieved this by amending the terms of our five year grants so that the final two years are contingent on the success of the first three. This deferred funding can be seen under the research expenditure line under ‘charitable activity’. This is important as it’s enabled us to invest £7.8 million more in research over the last 15 months. The reason for our traditionally prudent approach has been to protect us from fluctuations in income and investment portfolio value, a so-called ‘rainy day’. After seven years of the worst recession that this country has seen in decades and relatively little significant impact on income and investment values (in the long term), it’s time to review. In the year ahead our Trustees will be considering a new strategic risk model which will take a more progressive, yet still prudent, approach to the management of our assets, to enable more investment in patient activities. This will involve the review of our three to five year plans; cash flow forecasting; the reserves policy; and the investment policy and strategy.

Investment policy and performance We have current research commitments of £67 million at year-end and total assets of £79.4 million. Of this, £74.5 million is held in investments which are split between a long term main portfolio and a liquidity reserve portfolio. Cazenove Capital Management manages the investment portfolios to an agreed mandate and investment policy. The investment policy does not allow for direct investment in tobacco. Our investment objective for the main portfolio is to achieve a return, on a total return basis, after fees and costs, equal to the annual increase in the Consumer Price Index plus 3%. For the liquidity reserve our objective is to achieve a return at least equal to that available from London Interbank one month funds. At year-end the value of the main portfolio was £58.3 million and delivered a return of 4.21% against an objective of 4.65%. The main portfolio held up relatively well but was affected by the unexpected announcement of changes in pension and annuity regulations which had a detrimental effect on some companies in the portfolio at the year end.


Financial review

Pensions We contribute a defined amount to individual employees’ personal pension schemes, which are currently provided by AEGON. Details of these contributions and details of Leukaemia & Lymphoma Research’s liability in a previous scheme that closed in 2008 can be found in note 15 to the accounts. We’ve made the necessary arrangements for the introduction of auto-enrolment in July 2014 and are actively encouraging our employees to join.

subsidiaries and related parties Leukaemia & Lymphoma Research Trading Ltd is a wholly owned subsidiary of Leukaemia & Lymphoma Research. The principal activity of this trading company is a retail catalogue. The company has had a successful year and taxable profit of £325,000 was donated under gift aid to Leukaemia & Lymphoma Research, details of which are in note 7 to the accounts. The accounts presented on pages 37-40 are consolidated accounts.

Principal risks and uncertainties The Trustees must consider the risks that Leukaemia & Lymphoma Research faces, as well as the measures adopted to mitigate those risks. Risks are scored against their probability of occurrence and the impact to the charity should they occur. Until the recent changes in our committee structures, the Financial & General Purpose Committee (F&GP) has had delegated authority to monitor all risk and specifically to ensure that the risks are well managed. Their attention is primarily focused on risks categorised as high probability and high impact. In future this work will be undertaken by the Audit & Risk Committee. During the year the major risks have been reviewed and reported to the Board and we’re satisfied that systems and controls are in place to manage known risk and to identify and manage new risks as they arise.

The primary risk is of insufficient funds being available to meet research commitments and payments as they fall due. As already stated, we’re reviewing our strategic risk model to ensure that we have a progressive approach to our investment portfolio and reserves and we recognise that we must achieve a balance between the opportunities to maximise impact for patients while remaining solvent. It is our intention to maximise our planned expenditure on patient activities and this will require a more progressive approach to risk. However the frequency of our Research Committee and Board meetings enables us to take remedial action during the year should performance vary substantially from the plan. Insurance is in place to cover any liability of Leukaemia & Lymphoma Research, its Trustees and senior staff to legal action on the grounds of professional negligence.

Going concern Our current financial position has been outlined in the review above. The Trustees believe that Leukaemia & Lymphoma Research ends the year in a financially robust position. We’ve assessed projected income and expenditure and cash flow to June 2015 and beyond and considered the level of our reserves necessary to withstand any substantial fall in income. We have a reasonable expectation that we have adequate resources and control mechanisms to continue in operational existence for the foreseeable future. Therefore we continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Leukaemia & Lymphoma Research 29 How we work

how we work


How we work

Our charity Leukaemia & Lymphoma Research was founded in 1960 by the Eastwood family of Middlesborough. Following the tragic death of their daughter Susan, who was just 7 at the time, they decided to begin to raise money to stop children dying from leukaemia. The experience of the Eastwoods and other families like them inspires our belief that ‘life is a gift to be used wisely and lived fiercely’. The money was given to Dr Gordon Piller, House Governor of Great Ormond Street Hospital who set up our original peer review and committee structure to determine how money could be spent for patients most effectively. Thanks to his foresight, from the beginning, we can be sure that our research has been of the highest quality and subject to international, competitive review. We continued to grow through more families setting up voluntary fundraising branches of Leukaemia & Lymphoma Research throughout the country. Our branches are still at the heart of our community involvement and in the last year contributed £1.4 million of the £21.7 million that we raised. More recently we’ve understood that our knowledge and expertise in blood cancers can be used in other ways to achieve more impact for patients. Consequently we’ve invested in clinical trials; set up a policy and public affairs team; and extended our offer of patient services which includes patient information. Our governing document Leukaemia & Lymphoma Research is constituted as a company limited by guarantee and is a charity registered with the Charity Commission and OSCR. We’re governed by our Articles of Association which set out our objects, powers and matters relating to the running of our affairs. The members of the Company are the Chairman, the Vice-Chairman, the Honorary Treasurer, the Chief Executive and the Board of Trustees. The members of the Board are the same, with the exception of the Chief Executive who, as a paid employee, is not elegible to sit on the Board.

Susan Eastwood and her father

How we deliver public benefit The vision of Leukaemia & Lymphoma Research is to beat blood cancer. Our mission is to stop people dying from blood cancer; make patients’ lives better; and to stop people getting blood cancer in the first place. In this, we have paid attention to the Charity Commission guidance on public benefit. Our charitable purpose supports the delivery of this mission: The advancement of health and saving of lives by:

› Promoting and assisting research into all

aspects of blood cancers including the causes, diagnosis, treatment and cure of all blood cancers

› advancing the public understanding of blood

cancers.

Public benefit requires that our purpose must be beneficial and benefits the public in general. Our mission and purpose are evidently beneficial and the expenditure decisions that we make are aligned to this mission.


How we work

OUR BOARD OF TRUSTEES The purpose of our Board of Trustees (the Trustees) is much more than compliance, they are purposeful about all that they do. We are developing our Trustees to be a driving force, a hub of innovation, with the ambition and ability to change the world, and to lead and inspire others to do the same. We ask our Trustees to:

Governance review During the year the Trustees carried out a significant review of our governance. The review included the role, responsibilities, skills and experience of Trustees; the number of Trustees; the adoption of a single Trustee appointment method; the role and purpose of subcommittees; and the recruitment of a new Chair.

› Be motivated by purpose, keeping our mission at the

The outcomes of the review were:

› The recruitment of a new Chair, Pelham Allen.

heart of all that we do, all of the time.

› Have a clear understanding of the organisation, the

Trustee role and the responsibilities that it brings.

› Be honest about performance, committed to working together well and ready to improve to deliver impact. › Ultimately, take responsibility for the organisation;

managing it well, making difficult decisions and leading by example.

› Behave with integrity, independence of mind and a conviction of spirit that is always aligned to our mission.

› Act and behave with openness; welcoming

accountability, listening and responding with warmth and insight.

There are 13 Trustee members of the Board who currently serve for two years but we are able to reappoint at the end of the tenure. In July 2014 we plan to change our Articles of Association to extend this period to three years. This will be better aligned with the duration of our strategic plan and also give each Trustee a better opportunity to orientate themselves in a complex environment and to make an impactful contribution during their time as Trustee. Our Board of Trustees has overall responsibility for all that we do. It has delegated day to day decision making and operational matters to the senior management team to ensure that we’re effectively managed, All of our Trustees give their time voluntarily and are not remunerated other than out of pocket expenses of £1,525 which are disclosed in note 4 to the accounts.

› The recruitment of two new Trustees with contemporary business skills to meet existing skill gaps. Michael Prescott, Group Communications Director of BT, for his expertise in communications, PR and policy; and Simon Guild for his expertise in the digital environment.

› A single trustee appointment method through the

Appointments & Remuneration Committee.

› A restructure of our committee and sub-committees › An agreed code for the role and responsibilities of Trustees. › A reduction in the number of Trustees elected

from the regions, and the creation of a new regional committee to recognise the valuable experience and expertise of our branch members.

› The creation of the new role of Honorary President

in recognition of outstanding service to the Trustee Board. The Trustees were privileged to honour Richard Delderfield on his retirement as Vice Chairman and following 29 years of dedicated service to Leukaemia & Lymphoma Research; Angela Knowles on her retirement from the Board of Trustees and in recognition of her outstanding support of Leukaemia & Lymphoma Research as a Calendar Girl; and Ken Lomas on his retirement as Counsellor to the Board of Trustees and for his outstanding service in raising profile and funds for Leukaemia & Lymphoma Research through the TV Times sponsored celebrity running team.


How we work

The recruitment of our Chair, Pelham Allen, was conducted by a targeted recruitment search through a professional agency. The two new Trustees were also appointed as a consequence of this search. The recruitment process was managed by our Appointments Committee. An induction programme is organised for all new Trustees and continuous learning and development is encouraged.

Board meetings and committees During the year the Trustees agreed to increase the frequency of board meetings from three to six per year, to enable better continuity and more action focused agendas. We also hold an annual board development day which this year was an externally facilitated governance review day. There are some board matters which require specific experience and expertise; these are delegated to subcommittees that report back to the board.

RESEARCH committee, CLINICAL TRIALS committee AND training & CAREER DEVELOPMENT COMMITTEE The role of these expert committees is to review applications for grant funding in the light of international competitive peer review and alignment with the mission of Leukaemia & Lymphoma Research. Recommendations are made to the Board for approval. We’re very grateful for the time and effort freely given by the Chairmen and members of these committees who are detailed on page 54. REMUNERATION & APPOINTMENTS COMMITTEE Reviews executive level salaries and considers recommendations from the executive team on matters relating to reward and recognition. It also has the responsibility of succession planning for Trustees and the executive team as well as the appointment process. AUDIT & RISK COMMITTEE

PATIENT IMPACT sub-COMMITTEE Monitors, measures and reports on the impact of our investment in research and other patient activities. The original purpose of this committee was to involve Trustees in decision-making about patient impact, when this had traditionally been the domain of our research committees. It’s anticipated that as the results of our Prioritisation of Patient Need programme emerge, the business of this committee will become the responsibility of the Board of Trustees rather than a sub-committee within the next 12 months.

Considers and reviews systems, procedures and reporting on behalf of the Trustees in relation to financial performance, risk and the systems in place to manage risk, and regulatory compliance including the annual audit and statutory returns. INVESTMENT COMMITTEE The Investment Committee is a committee of Audit & Risk which has the delegated responsibility to monitor the performance of the Investment Manager, currently Cazenove, in relation to the Investment Portfolio and the Liquidity Reserve. We’re especially grateful to Andrew Hutton who brings valuable expertise and experience to his role as advisor to this committee.

board of trustees

› patient impact

sub-committee

› research committee › clinical trials committee › training & career

development committee

› Remuneration &

appointments committee

› audit & risk

committee

› investment

committee


How we work

our staff and volunteers

Remuneration policy

For our 94-strong team of employees to be successful in their work we need to ensure they have a clear plan to work to, where their individual objectives are clearly aligned to our strategic plan. We also need to ensure we can help them to optimise their skills, capabilities, strengths and behaviours, which we do through a learning and development programme.

During the year a full review of pay and grading was completed at Leukaemia & Lymphoma Research. A Trustee was the sponsor of the project group and oversaw a robust review and benchmarking of roles and remuneration.

During the year we introduced a performance and development review approach which is led by the individual and is focused on reviewing not just what has been achieved but also the way it has been achieved, according to our belief and principles. We believe that all of these things help to make Leukaemia & Lymphoma Research a desirable employer and help to improve performance across the organisation in pursuit of our goals. It also helps us to create a happy and motivated team.

We are mindful of recent press coverage especially of the issue of senior executive pay. We are equally mindful of the experience, capabilities and behaviours that we need in our team to have the best opportunity to achieve our ambitious plans for patients, as well as the overall performance of the charity. In the year ahead we will consider the recommendations from the NCVO report on the pay of senior executives. Details of senior executive salary bands can be found in note 4 and we will further develop our pay policy in the coming year.

Our senior management team – Research Director, Fundraising Director, Marketing Director and Finance Director together with the Chief Executive – lead the implementation of the three year plan. Over recent years we have become more operationally professional, but what keeps Leukaemia & Lymphoma Research special is that our volunteers are at the heart of all that we do. Our Trustees, our committee members, our volunteers at head office; our branch volunteers throughout the country, those who volunteer at events and our employees – who also give up much of their time unpaid – are integral to our ability to do all that we can for patients.

Signed by order of the Trustees (incorporating information to be reported in the Director’s report as per the requirements of the Companies Act)

Catherine Gilman Chief Executive & Company Secretary 17 June 2014



Statement of trustee responsibilities The Trustees (who are also the directors of Leukaemia & Lymphoma Research for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and group for that period. In preparing these financial statements, the Trustees are required to:

› select suitable accounting policies and then apply

them consistently

› observe the methods and principles of the

Charities SORP

› make judgments and accounting estimates that are

reasonable and prudent

› state whether applicable UK Accounting Standards

have been followed, subject to any material departures disclosed and explained in the financial statements

› prepare the financial statements on the going

concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the

charitable company, and of the group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware:

› there is no relevant audit information of which the

charitable company’s auditor is unaware; and

› the Trustees have taken all steps they ought to have

taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.


Independent auditor’s report

Independent Auditor’s Report to the Trustees and Members of Leukaemia & Lymphoma Research for the year ended 31 March 2014 We have audited the financial statements of Leukaemia & Lymphoma Research for the year ended 31 March 2014 which comprise the Group Statement of Financial Activities, the Group and charitable company’s Balance Sheets, the Group Cash Flow Statement and the related notes 1 to 16. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s Trustees, as a body, in accordance with section 44(1) (c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Our audit work has been undertaken so that we might state to the charitable company’s members and the Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body and the charitable company’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of Trustees and auditor As explained more fully in the Trustees’ Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. We have been appointed as auditor under section 44(1) (c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group’s and the parent charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements:

› give a true and fair view of the state of the group’s

and the parent charitable company’s affairs as at 31 March 2014 and of the group’s and the parent charitable company’s incoming resources and application of resources, including the group’s and the parent’s income and expenditure, for the year then ended;

› have been properly prepared in accordance with

United Kingdom Generally Accepted Accounting Practice; and

› have been prepared in accordance with the

Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).


Independent auditor’s report

Independent Auditor’s Report to the Trustees and Members of Leukaemia & Lymphoma Research for the year ended 31 March 2014 (continued) Opinion on other matters prescribed by the Companies Act 2006 In our opinion the information given in the Strategic Report and the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

› The parent charitable company has not kept proper

and adequate accounting records or returns adequate for our audit have not been received from branches not visited by us; or

› The parent charitable company’s financial

statements are not in agreement with the accounting records or returns; or

› Certain disclosures of Trustees’ remuneration

specified by law are not made; or

› We have not received all the information and

explanations we require for our audit.

R eza Motazedi fca (Senior statutory auditor) for and on behalf of Deloitte LLP Chartered Accountants and Statutory Auditor london, United Kingdom Deloitte LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 and consequently to act as the auditor of a registered charity.

Leukaemia & Lymphoma Research 37 Group statement of financial activities for the year ended 31 March 2014

Group statement of financial activities for the year ended 31 March 2014 Incorporating the income and expenditure account 2014

2014

2014

2013

Restricted Funds

Unrestricted Funds

Total

Total

£'000

£'000

£'000

£'000

1,533

11,198

12,731

10,717

97

6,712

6,809

6,484

1,630

17,910

19,540

17,201

7

-

581

581

960

1

-

1,535

1,535

1,657

-

-

-

535

1,630

20,026

21,656

20,353

-

5,380

5,380

4,612

-

257

257

703

-

235

235

226

-

5,872

5,872

5,541

199

23,969

24,168

33,162

Deferred funding

-

(3,862)

(3,862)

(3,924)

Unspent funds at completion of grant

-

(679)

(679)

(3,509)

815

815

729

199

20,243

20,442

26,458

-

251

251

256

Notes

INCOMING RESOURCES Incoming resources from generated funds

Voluntary income

Legacies

Activities for generating funds

Trading income (LLRT)

Investment income Profit on disposal of fixed assets TOTAL INCOMING RESOURCES

RESOURCES EXPENDED Cost of generating funds

Fundraising and Marketing

Trading expenditure (LLRT)

Investment management fees

Charitable activities

7

2

Research

Patient benefit activities

Governance costs

TOTAL RESOURCES EXPENDED

2

199

26,366

26,565

32,255

NET incoming / (OUTGOING) RESOURCES, BEING NET EXPENDITURE FOR THE YEAR, BEFORE TRANSFERS

3

1,431

(6,340)

(4,909)

(11,902)


Leukaemia & Lymphoma Research 38 Group statement of financial activities for the year ended 31 March 2014

Group statement of financial activities for the year ended 31 March 2014 (continued) Incorporating the income and expenditure account 2014

2014

2014

2013

Restricted Funds

Unrestricted Funds

Total

Total

£'000

£'000

£'000

£'000

3

1,431

(6,340)

(4,909)

(11,902)

14

(1,431)

1,431

-

-

-

(4,909)

(4,909)

(11,902)

-

797

797

7,232

NET MOVEMENT IN FUNDS

-

(4,112)

(4,112)

(4,670)

Balance brought forward at 1 April 2013

-

15,460

15,460

20,130

-

11,348

11,348

15,460

Notes

NET INCOMING / (OUTGOING) RESOURCES, BEING NET EXPENDITURE FOR THE YEAR, BEFORE TRANSFERS Transfers NET OUTGOING RESOURCES, BEING NET EXPENDITURE FOR THE YEAR, BEFORE GAINS Realised and unrealised gains on investments

Balance carried forward at 31 March 2014

6

13

All amounts relate to the continuing activities of the group. The group has no recognised gains and losses other than those included in the results above, and therefore no separate statement of total recognised gains and losses has been presented. The notes on pages 41 to 52 form part of these financial statements.


Leukaemia & Lymphoma Research 39 Balance sheets as at 31 March 2014

Balance sheets as at 31 March 2014 GROUP

LLR

2014

2013

2014

2013

Notes

£'000

£'000

£'000

£'000

Tangible assets

5

1,956

2,052

1,956

2,052

Investments

6

74,477

81,424

74,477

81,424

Investment in subsidiary company

7

-

-

76

76

76, 433

83,476

76,509

83,552

109

82

82

61

1,711

1,185

1,891

1,359

1,185

1,385

896

1,098

3,005

2,652

2,869

2,518

(26,279)

(25,685)

(26,219)

(25,627)

(23,274)

(23,033)

(23,350)

(23,109)

53,159

60,443

53,159

60,443

(41,811)

(44,983)

(41,811)

(44,983)

11,348

15,460

11,348

15,460

FIXED ASSETS

CURRENT ASSETS Stocks Debtors

8

Cash at bank and in hand

CREDITORS Amounts falling due within one year

9

NET CURRENT LIABILITIES

TOTAL ASSETS LESS CURRENT LIABILITIES Creditors: Amounts falling due after more than one year

10

NET ASSETS

Represented by: RESTRICTED FUNDS

14

-

-

-

-

UNRESTRICTED FUNDS

14

11,348

15,460

11,348

15,460

11,348

15,460

11,348

15,460

The financial statements were approved, authorised for issue and signed on behalf of the Trustees on 17 June 2014 by: P B Allen Chairman P M Burrell Honorary Treasurer The notes on pages 41 to 52 form part of these financial statements. Company registered Number : 738089


Leukaemia & Lymphoma Research 40 Group cash flow statement for the year ended 31 March 2014

Group cash flow statement for the year ended 31 March 2014 2014

2013

Notes

£'000

£'000

Cash flow from operating activities

(a)

(9,479)

(6,421)

Returns on investments

(b)

1,535

1,657

(7,944)

(4,764)

8,611

929

667

(3,835)

Opening cash on deposit

10,916

14,751

Closing cash on deposit

11,583

10,916

Capital expenditure and financial investment

(c)

Cash flow for the year

NOTES TO THE CASH FLOW STATEMENT: (a) Reconciliation of net outgoing resources to cash flow from operating activities.

Net outgoing resources for the year

(4,909)

(11,902)

Investment income

(1,535)

(1,657)

Adjustment for non-cash items: 96

99

-

(533)

(27)

2

(526)

478

(2,578)

7,092

(9,479)

(6,421)

1,481

1,600

Depreciation

Profit on sale of fixed assets

Decrease/(Increase) in stocks

Decrease/(Increase) in debtors

Increase/(Decrease) in creditors

(b) Returns on investments.

Listed investment income

Interest received

10

22

Rental income

44

35

1,535

1,657

8,611

362

-

567

8,611

929

(c) Capital expenditure and financial investment.

Net proceeds from sales and purchases of investments

Purchases less disposals of tangible fixed assets



Accounting policies for the year ended 31 March 2014

ACCOUNTING POLICIES Basis of accounting

Resources expended

The report and accounts are prepared under the historical cost convention modified to include the revaluation of investments and in accordance with the Companies Act 2006, applicable accounting standards and Accounting and Reporting by Charities; Statement of Recommended Practice revised 2005 (SORP).

Costs of Generating Funds comprises costs associated with attracting voluntary income and costs of other income generation e.g. costs of goods sold and other costs associated with Leukaemia & Lymphoma Research Trading. Expenditure is brought into the accounts when incurred.

The report and accounts are prepared on a going concern basis as described in the Report of Trustees on page 28.

Purchase costs and net proceeds of disposal of investments include the direct costs of investing and disposing respectively.

As permitted by section 408 of the Companies Act 2006 and Paragraph 397 of the SORP, no separate Statement of Financial Activities has been prepared in respect of Leukaemia & Lymphoma Research.

Charitable activities expenditure includes expenditure associated with their performance and comprises direct expenses including grant awards and staff costs as well as support costs attributable to these activities.

Incoming resources Legacy income is brought into the accounts when receivable. This is deemed to be when notice of impending distribution has been received as at 31 March and the funds have been received or can be quantified with reasonable certainty by 15 May. Investment income is brought into the accounts when receivable. Income from voluntary Branches and donations from other voluntary fundraising sources are brought into the accounts when received at Head Office. Gift Aid is brought into the accounts on a receivable basis as part of the income to which it relates. Fundraising income is shown gross except for small fundraising events run by volunteers where monies are received at Head Office net of expenses. Leukaemia & Lymphoma Research Trading (LLRT) income is included when receivable, excluding VAT.

Research, training and educational grants are included in the Statement of Financial Activities (SoFA) when detailed costs are approved by the Board of Trustees. Clinical trials grants are included in the SoFA when approved by the Board of Trustees and once the ethical approval of the final protocol is obtained. Other charitable expenditure is brought into the accounts when incurred. Governance costs include those incurred in the governance of assets and strategy matters of the charity, associated with constitutional and statutory requirements. Where costs cannot be directly attributed, including support and central function costs, they have been allocated to activity cost categories on a basis consistent with the use of the resources e.g. estimated time spent or amount used. Irrecoverable VAT is written off when the expenditure to which it relates is incurred and is recorded as part of that expense.


Depreciation of tangible fixed assets Freehold land is not depreciated and all items of equipment costing below £1,000 are charged in full to expenditure in the year of purchase. Other categories of fixed assets are written off over the following periods: › Freehold buildings – 50 years › Refurbishment costs – 5 years › Software development costs – 7 years › Equipment – 2 years › Vehicles – 4 years

Branch accounting The 131 voluntary Branches and voluntary Fundraising Groups across the UK raise money for Leukaemia & Lymphoma Research from a variety of local activities and sources with minimal cost expenditure and submit accounts annually to Head Office. The Branches’ net assets, being primarily cash not remitted to Head Office by 31 March 2014, have not been consolidated in these accounts and these have been estimated at £268,000 (2013: £220,000).

Pension contributions Pension contributions payable under a defined contribution scheme are charged to the SoFA in the accounting period to which they relate.

Group accounts Leukaemia & Lymphoma Research Trading is wholly owned by Leukaemia & Lymphoma Research and is consolidated in these accounts on a line by line basis.

Accounting policies for the year ended 31 March 2014

Funds Unrestricted general funds are available for charitable purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors. Full details of funds are shown in note 14.

Taxation As a registered charity, income and gains are exempt from Corporation Tax to the extent they are applied to its charitable objectives. The trading subsidiary has not incurred a tax charge since all its profits are gifted to the charity.

Investments Investments are included at market value at the balance sheet date which gives rise to unrealised gains and losses at the end of the financial period, which are included in the SoFA.



Notes to the accounts for the year ended 31 March 2014 1

INVESTMENT INCOME

2014

2013

£'000

£'000

UK listed equities

874

965

Non-UK listed equities

135

80

Fixed interest stocks

472

555

Bank interest Rental income Interest on legacy accounts

2

3

13

44

35

7

9

1,535

1,657

RESOURCES EXPENDED

Research Grants

Staff

Direct costs

Allocated Central Support costs

Total 2014

Total 2013

£’000

£'000

£'000

£'000

£'000

£'000


-

2,569

2,074

737

5,380

4,612

LLRT costs

-

-

257

-

257

703

Investment management fees

-

-

235

-

235

226

Research

23,224

295

564

85

24,168

33,162

Deferred funding

(3,862)

-

-

-

(3,862)

(3,924)

(679)

-

-

-

(679)

(3,509)

Patient benefit activities

-

544

115

156

815

729

Governance costs

-

189

42

20

251

256

18,683

3,597

3,287

998

26,565

32,255

Costs of generating funds

Charitable activities


Total

Direct costs are those costs associated with providing the activity such as fundraising materials, advertising, postage and stationery, venue and travel expenses. Central support costs, which include office and premises costs, are allocated on a basis consistent with use of resources, primarily headcount. Staff costs and allocated central support costs are allocated on the basis of a combination of time spent on each activity and headcount. Governance direct costs include auditor’s remuneration, legal and professional fees and Trustees’ expenses.



Notes to the accounts for the year ended 31 March 2014 (continued) 3

NET OUTGOING RESOURCES

2014

2013

£'000

£'000

Depreciation of tangible fixed assets owned by the charity

96

99

Auditor’s remuneration

20

19

2014

2013

£'000

£'000

3,126

2,661

301

261

Net outgoing resources is stated after charging:

4

STAFF COSTS

Salaries National Insurance contributions Pension scheme contributions

170

106

3,597

3,028

Number

Number


66

59

Patient benefit activities, including research

16

14

Central support and governance

12

10

94

83

£70,001 - £80,000

-

1

£80,001 - £90,000

4

3

£100,001 - £110,000

-

1

£110,001 - £120,000

1

-

Analysis of average number of employees during the year by function:

The number of employees whose total emoluments for the year, as defined for taxation purposes, exceeded £60,000 were:

Related contributions were made to the pension scheme (see note 15) amounting to £91,572 (2013: £52,459). The relevant staff costs have been included in the costs of generating voluntary income and in the costs of charitable activities and governance costs. Members of the Board of Trustees receive no emoluments. Four members (2013: five members) have been reimbursed travelling and accommodation expenses totalling £1,525 (2013:£2,908).




TANGIBLE ASSETS - GROUP AND LLR Freehold Land & Buildings

Fixtures, Equipment and Vehicles

Total

£’000

£’000

£’000

1,965

765

2,730

177

501

678

20

76

96

197

577

774

At 31 March 2014

1,768

188

1,956

At 31 March 2013

1,788

264

2,052

Cost At 1 April 2013 and 31 March 2014

Depreciation At 1 April 2013 Charge for the year At 31 March 2014 Net Book Value

6

INVESTMENTS - GROUP AND LLR

2014

2013

£’000

£’000

71,893

65,023

7,147

9,642

(15,758)

(10,004)

797

7,232

Market value of investments at 31 March

64,079

71,893

Cash held as part of investment portfolio

10,398

9,531

Total with investment managers

74,477

81,424

Market value of investments at 1 April Additions at cost Disposal proceeds Net investment gains




INVESTMENTS - GROUP AND LLR (continued)

2014

2013

£’000

£’000

Listed UK equities

18,258

21,253

Listed UK fixed interest & government stocks

13,934

17,810

Listed non-UK equities

14,516

16,311

4,540

5,030

Other funds

12,831

11,489

Total investments

64,079

71,893

Cost of investments

53,120

58,028

Investment revaluation reserve (difference between market value and cost)

10,959

13,865

Investments comprise the following:

Listed non-UK fixed interest stocks

7

INVESTMENT IN SUBSIDIARY COMPANY - LLR ONLY

The investment in Leukaemia & Lymphoma Research Trading Ltd (LLRT) represents the whole of the issued ordinary share capital of a company incorporated in the United Kingdom which engages in the sale of Christmas cards and gifts to raise funds for Leukaemia & Lymphoma Research. The key financial information of Leukaemia & Lymphoma Research Trading is as follows:

2014

2013

£’000

£’000

581

960

1

1

582

961

(178)

(603)

Distribution costs

(57)

(66)

Overhead expenses

(22)

(34)

(325)

(258)

-

-

76

76

-

-

76

76

Turnover Bank interest received

Cost of sales and direct expenses

Donated to LLR under Gift Aid Movement in shareholders funds Share capital Retained profit / (loss) Shareholders funds represented by net assets




DEBTORS - Amounts receivable within one year

GROUP

LLR

2014

2013

2014

2013

£'000

£'000

£'000

£'000

7

9

7

9

Trade debtors

122

14

-

-

Other debtors

64

35

64

34

Due from subsidiary undertaking

-

-

302

189

Prepayments and accrued income

1,518

1,127

1,518

1,127

1,711

1,185

1,891

1,359

Income tax recoverable

Prepayments and accrued income includes accrued income in respect of legacies receivable of £952,000 (2013: £440,000). Legacies for which a notice of distribution had been received at 31 March 2014 but no funds had been received by 15 May 2014 were estimated to be £3,476,000 (2013: £2,630,000).

9

CREDITORS - Amounts falling due within one year

GROUP 2013

2014

2013

£'000

£'000

£'000

£'000

25,598

25,220

25,598

25,220

520

258

463

203

Accruals and provisions

87

136

84

133

Pension liability (note 15)

74

71

74

71

26,279

25,685

26,219

25,627

Research commitments (note 11) Other creditors

10

LLR

2014

CREDITORS - Amounts falling due after more than one year GROUP AND LLR

Research commitments (note 11) Pension liability (note 15)

2014

2013

£'000

£'000

41,386

44,484

425

499

41,811

44,983




MOVEMENT IN AND ANALYSIS OF RESEARCH COMMITMENTS - GROUP AND LLR

2014 £'000 Balance at 1 April Grants approved by the Board of Trustees during the year (note 12)

2013 £'000

£'000

69,704

62,441

23,224

32,484

944

678

Total research expenditure

24,168

33,162

Deferred funding

(3,862)

(3,924)


(679)

(3,509)

Research support costs

(944)

(678)

Research support costs

£'000

18,683

25,051

88,387

87,492

(21,403)

(17,788)

Balance at 31 March

66,984

69,704

Due within one year (note 9)

25,598

25,220

Due after more than one year (note 10)

41,386

44,484

66,984

69,704

Less: Paid during the year

Total research commitments of £66,984,000 (2013: £69,704,000) are amounts approved by the Board of Trustees on or before 31 March 2014 for spend over the next 5 years. Research support costs comprise related staff costs, direct costs and allocated central support costs. The deferred funding of £3,862,000 (2013: £3,924,000) is in respect of funding, due after more than one year and within 5 years, for grants approved by the Board of Trustees during the year that are subject to conditions being met. The amount of expenditure in each year depends on the progress of the research projects and therefore the amount shown in note 9 as due within one year is an estimate.



Notes to the accounts fo the year ended 31 March 2014 (continued) 12

GRANTS APPROVED IN THE YEAR, SHOWN BY INSTITUTION - GROUP AND LLR

2014

2013

£'000

£'000

129

-

1,928

-

219

-

Imperial College

1,142

1,745

Institute of Cancer Research

1,665

472

-

143

1,832

1,662

-

115

Addenbrookes Hospital Cardiff University Derriford Combined Laboratories

Institute of Child Health King’s College London London Barts London Hammersmith National Institute of Medical Research Nottingham University Hospital NHS Trust Queen Elizabeth Hospital Birmingham Queen’s University Belfast

45

148

-

185

60

-

-

117

154

-

Royal Liverpool Hospital

-

161

Royal Marsden

-

200

St James’s University Hospital

2

-

120

-

33

-

1,751

2,513

-

180

3,770

3,486

235

-

1,239

7,076

The Babraham Institute The University of Manchester University College London University Hospital Birmingham University of Birmingham University of Bristol University of Cambridge University of Cardiff

-

645

University of Dundee

-

232

488

1,031

1,169

496

717

-

University of Edinburgh University of Glasgow University of Leeds University of Liverpool University of Manchester University of Newcastle

43

202

443

2,192

2,050

1,147




GRANTS APPROVED IN THE YEAR, SHOWN BY INSTITUTION - GROUP AND LLR (continued) 2014

2013

£ ‘000

£’000

46

-

3,364

3,334

-

1,392

388

3,023

University of Sussex

-

225

University of York

-

114

Wellcome Trust Sanger Institute

-

77

23,032

32,313

192

171

23,224

32,484

University of Nottingham University of Oxford University of Sheffield University of Southampton

Supplements to existing grants Grants approved by the Board of Trustees during the year (note 11)




ANALYSIS OF NET ASSETS BY FUNDS - GROUP

Tangible Investments Assets

Unrestricted Funds

14

Long Term Liabilities

Net Assets

£'000

£'000

£'000

£'000

£'000

1,956

73,237

(22,034)

(41,811)

11,348

-

1,240

(1,240)

-

-

1,956

74,477

(23,274)

(41,811)

11,348

Resources Expended

Transfers

Restricted Funds Total funds

Net Current (Liabilities) / Assets

RECONCILIATION OF MOVEMENTS IN FUNDS - GROUP

Balance 1 Incoming April Resources 2013 Unrestricted funds Restricted Funds Total funds

Gain on Balance Investments 31 March 2014

£’000

£'000

£’000

£’000

£’000

£’000

15,460

20,026

(26,366)

1,431

797

11,348

-

1,630

(199)

(1,431)

-

-

15,460

21,656

(26,565)

-

797

11,348

The Trustees will review the requirement for unrestricted funds during the year ending 31 March 2015. Reallocations between restricted and unrestricted funds relate to income raised in respect of commitments made and recognised by the charity in a prior period. This ensures that restricted income is correctly matched to the charitable expenditure to which it relates. As permitted by Section 408 of the Companies Act 2006, no separate Statement of Financial Activities has been included in respect of Leukaemia & Lymphoma Research. The movement in funds during the year that has been recognised in the financial statements of Leukaemia & Lymphoma Research is a decrease of £4,112,000.




PENSION CONTRIBUTIONS Leukaemia & Lymphoma Research operates a scheme to contribute a defined amount to individual employees’ personal pension schemes. The assets of the various schemes are held separately from those of Leukaemia & Lymphoma Research in independently administered funds. The total cost of these schemes was £170,000 (2013: £106,000). Outstanding contributions included within other creditors at the balance sheet date were £19,000 (2013: £16,000) The former pension scheme for Leukaemia & Lymphoma Research and Leukaemia & Lymphoma Research Trading was part of a multi employer scheme which is a defined benefit scheme, the assets of which are held in independently administered funds. This scheme was closed to new entrants eight years ago and is in the process of being wound up. During the year ended 31 March 2011 the fund’s administrators issued notice valuing Leukaemia & Lymphoma Research’s share of the scheme’s liability at £713,000 payable in equal, monthly instalments over a ten year period from April 2011, of which £499,000 is included in creditors at 31 March 2014. An actuarial valutation of the scheme was performed as at 31 March 2012. The new recovery plan for the scheme that began at 1 April 2013 values Leukaemia & Lymphoma Research share of the liability at £376,000 payable over a six years period. The original provision made for the liability has not been reduced due to inherent uncertanties in future revaluations.

16

RELATED PARTY TRANSACTIONS Leukaemia & Lymphoma Research has taken advantage of the exemptions permitted under FRS 8 not to disclose transactions between Leukaemia & Lymphoma Research and its wholly owned subsidiary which eliminate on consolidation.



patron & trustees Royal Patron His Royal Highness The Duke of Kent KG President Sir Ian Botham OBE Honorary Presidents Richard Delderfield Angela Knowles Ken Lomas MBE Chairman of Fundraising Alistair Campbell

Board of Trustees* NAME

Pelham Allen (Chairman)

AUDIT & RISK COMMITTEE

*

REMUNERATION & APPOINTMENTS COMMITTEE

INVESTMENT COMMITTEE

* *

Jeremy Bird (Vice-Chairman) Peter Burrell FCA (Honorary Treasurer)

PATIENT IMPACT COMMITTEE

*

*

*

Maria Clarke # (Scotland)

*

Zanna Floyd Mary Grange # (North) Simon Guild

*

Lesley Lee # (South East)

*

Charlie Metcalfe Michael Prescott

*

John Purser # (Midlands) John Reeve

*

Michael Williams

*

* As at year-end # = denotes the Trustee represents a region



officers & advisers Investment adviser Andrew Hutton We would like to recognise the help and expert advice that Andrew Hutton has freely given to the Investment Committee

Professor Matthew Collin, Newcastle University

once again this year.

Dr Adele Fielding, University College London

Senior management *

Professor Paul Farrell, Imperial College London

Dr Reuben Tooze, University of Leeds

Catherine Gilman, Chief Executive

Bankers

Professor Chris Bunce, Research Director

Barclays Bank plc

Jonathan Cox, Finance Director

1 Churchill Place, London E14 5HP

Emma Whelan, Marketing Director Mark Wilson, Fundraising Director

Auditor Deloitte LLP, Chartered Accountants & Registered Auditors

Research Committee members*

2 New Street, London EC4A 3BZ

Professor Paul Farrell (Chairman), Imperial College London Professor Christian Bastard, Centre Henri Becquerel, Rouen, France

Investment managers

Professor Julian Dyson, Imperial College London

Cazenove Capital Management Ltd with Charity Investment from

Professor David Gillespie, University of Glasgow

Schroders 12 Moorgate, London EC2R 6DA

Professor Tessa Holyoake, University of Glasgow Dr Richard Jenner, University College London

Legal advisers

Professor Paul Kellam, Wellcome Trust Sanger Institute, Cambridge

Field Fisher Waterhouse

Dr Stefan Meyer, University of Manchester Professor Robert Slany, University of Erlangen, Germany Dr Martin Turner, Babraham Institute, Cambridge

35 Vine Street, London EC3N 2AA Nabarro Lacon House, 84 Theobald’s Road, London WC1X 8RW

Professor Mark Vickers, University of Aberdeen

Registration

Dr Marieke von Lindern, Amsterdam Medical Center, Netherlands

Our registered and operational name is Leukaemia & Lymphoma Research

Clinical Trials Committee* Professor Irene Roberts (Chair), University of Oxford

We are registered with the Charity Commission of England and Wales (Charity numbers 216032) and in Scotland (Charity number

Dr Jamie Cavenagh, Bart’s Cancer Institute, London

SC037529) and as a company limited by guarantee (registered

Professor Christine Chomienne, Institut Universitaire d’Hematologie, Paris, France

number 738089).

Professor Stephen Devereux, King’s College Hospital, London Professor Paul Farrell, Imperial College London

Principal office Our registered office is 39-40 Eagle Street, London WC1R 4TH

Dr Claire Harrison, Guys and St. Thomas’ NHS Foundation Trust

Our regional offices

Professor Peter Hillmen, St James’ University Hospital, Leeds

Scotland 12-14 Hillside Crescent, Edinburgh EH7 5EA

Dr Robert Hills, Cardiff University

North Newcastle University, Biomedical Research Building, Room 2.35, 2nd Floor Campus for Ageing and Vitality, Newcastle upon Tyne NE4 5PL

Professor Graham Jackson, Northern Centre for Cancer Care, Newcastle Dr Martin Pule, University College London Professor Simon Rule, Derriford Hospital, Plymouth Dr Anna Schuh, University of Oxford

Training & Career Development * Professor Chris Gregory (interim Chairman), University of Edinburgh

Midlands Medical School, University of Birmingham, Edgbaston B15 2TT Wales Department of Haematology, School of Medicine, Room 182, 7th Floor, B-C Link, Cardiff University, Heath Park, Cardiff CF14 4X South West Unit 40, Basepoint Business Centre, Yeoford Way, Exeter EX2 8LB London and South East 39-40 Eagle Street, London WC1R 4TH




Leukaemia & Lymphoma Research 39–40 Eagle Street, London WC1R 4TH

beatingbloodcancers.org.uk