2012 annual accounts - IPM

Company Registration No. 00975635 (England and Wales)

THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED

(LIMITED BY GUARANTEE)

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2012

FSPGCHARTERED ACCOUNTANTS

21 BEDFORD SQUARE

LONDON

WC1B 3HH


(LIMITED BY GUARANTEE)COMPANY INFORMATION

Directors Laura Appleby

Stephen Bentley (Appointed 1 January 2012)

Samuel Blunt

Jordi Connor

Paul Dwan (Appointed 1 January 2012)

Peter Kerr

Ian Moore

Alexander Meisl (Appointed 1 January 2013)

Rebecca Munday

Kimberley Ann Robinson (Appointed 1 January 2013)

Marcus Sandwith (Appointed 1 January 2013)

Bob Suppiah

John Sylvester

Matthew Tabb (Appointed 1 January 2012)

Graham Temple

Nicola Thompson

Secretary HS (Nominees) Limited

Company number 00975635

Registered office 70 Margaret Street

London

W1W 8SS

Auditors FSPG

21 Bedford Square

London

WC1B 3HH


(LIMITED BY GUARANTEE)COMPANY INFORMATION

Fellows of The Institute

Ian Allchild Tim Arnold Keith Bantick

Tony Barnes Chris Bestley Andrew Brown

Stephen Callender Colin Chamberlain Philip Circus

Jon Cooper Alan Crossman Iain Ferguson

Peter Franklin Ian Fryer John Fuller

Leys Geddes John Greenway Graham Griffiths

Colin Hall Jack Heath John Hooper CBE

Roger Hyslop Mike Johnson Graham Kemp

Peter Kerr Peter le Conte Faith Legh

Colin Lloyd Stuart MacMillan Pratt Simon Mahoney

Andrew Marsden Tim Mason Richard Millett

Clive Mishon Alistair Mitchell Becky Munday

Vanita Pandey Guy Parker Roy Piercy

James C Porteous MBE Jeremy Sandys-Winsch Gordon Savage

Brian Seymour Robert Simmons Brenda Simonetti

Mike Slipper Ken Spedding Randle Stonier

Graham Temple Alan Toop Philip Town

Kevin Twittey Ken Vaughan Aubrey Watson

Nick Wells John Williams Alan Wolfe


(LIMITED BY GUARANTEE)CONTENTS

Page

Directors' report 1 - 8

Independent auditors' report 9 - 10

Profit and loss account 11

Balance sheet 12

Notes to the financial statements 13 - 17

Detailed Trading and Profit and Loss account 18

Schedule of Administrative expenses 19


(LIMITED BY GUARANTEE)DIRECTORS' REPORT


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The directors present their report and financial statements for the year ended 30 September 2012.

Principal activities

The principal activity of the company continued to be that of the advancement of sales promotion.

Review of business for the year

During 2012, the IPM continued to broaden its member base and adopt a more assertive stance within the promotional marketing landscape. We are proudly dedicated to upholding the highest standards of professionalism in the promotional marketing industry, representing the interests of client companies that use promotional marketing techniques and the agencies and suppliers that support them.

The current economic conditions remain challenging, although the recent significant increase in IPM Awards entries points to an industry that rises to any challenge! This is a true testimony to the sector, and reinforces the IPM's new theme of 'Made in the UK' and how proud we are of our members output.

Such output no longer focuses just on tactical sales-driving promotions - the IPM now champions marketing which leads to behaviour change at a more strategic level.Under the leadership of Chairman Becky Munday, Vice-Chairman Graham Temple, and Chief Executive Officer Annie Swift, the IPM is committed to championing the effectiveness of promotional marketing amongst the wider marketing community and beyond.

We will continue to invest in our research function. This was launched over three years ago and has already delivered solid evidence for the real value and effectiveness of creative promotional marketing. With evidence comes belief, and with belief should come increased investment in a plethora of promotional marketing activities across all industries and all media channels.

Of course, promotions still have to tick all the right boxes: and compliance, particularly in the digital arena, must be a priority for all those involved in the creation and execution of promotions, whichever media channels are used.

Promotions that are run professionally and effectively will continue to strike the right chord with their target audiences. Promotions that are run ineffectively and with scant regard for consumer-protecting rules can damage a brand's reputation and that of the agencies and suppliers behind them.

The IPM continues to play a major role in ensuring that promotions are legal and follow the CAP Code and best practice. We do this through our well-established Legal Advisory Service (headed up by barrister Philip Circus, one of the UK's leading marketing law experts) and through our Compliance function (headed up by Edwin Mutton, who also represents the IPM on the Committee of Advertising Practice).

Our LAS has been working particularly hard over the past six months to respond to the explosive growth in online social media sites and how they are affecting the promotional landscape. The team worked with Facebook, the ASA and CAP and has now published A Guide to Running Promotions on Facebook. This was launched at the IPM's Social Marketing Conference in February, attended by 100 industry players. The IPM is now in talks with Twitter over its promotional rules.

We also continue to play a very active role in the UK's self-regulatory system governing advertising and marketing. As already mentioned, Edwin Mutton sits on the CAP Committee, which draws up the CAP Code; and Philip Circus chairs CAP's Sales Promotion and Direct Response Panel.

Following on from the extension of the ASA's digital remit in March 2011, the IPM published the Experiential Marketing Code of Conduct. Experiential has grown explosively over the last decade, but many of the techniques used were not covered by the CAP Code. With many promoters these days incorporating experiential in to their campaigns, it was vital that the same levels of consumer protection applied to experiential as already exist in more traditional marketing channels.


(LIMITED BY GUARANTEE)DIRECTORS' REPORT (CONTINUED)


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Our world-leading education programme continues to ensure that promotions are well executed, comply with the law and the CAP Code and adhere to the highest standards.

The IPM Diploma is now in its 31st year, and 2013 sees the launch of the International Diploma developed by the IPM alongside EACA.

The Diploma in Motivation, the Certificate in Promotional Marketing and the Certificate in Experiential Marketing all continue to thrive and we have also expanded our range of one day courses with new courses covering the measurement of experiential, digital compliance and running promotions on mobile.

Despite the economic conditions, 2013 has seen entries to the IPM Awards rise by a staggering 15%. This should make for a record breaking attendance at the Gala Dinner in June and hopefully a suitcase full of Awards the European IMC Awards and the worldwide MAAW Globes.

The IPM is more proactive on the communications front, led by Head of Communications Martin Croft, and is keen to explore digital as well as more traditional ways to engage with members. IPM representatives have appeared on BBC TV and radio, plus commercial radio, and the IPM has been quoted in UK national newspapers, magazines and online news sites.

Much of this coverage has been generated by incisive research, but some of it has been in response to national news stories on issues such as money-off coupon misuse, the administration of competitions and money-saving strategies during the recession.

Our ongoing research into the margin-damaging effects of continuous price discounting and the brand-building alternatives offered by various forms of value-added promotional marketing continues to be widely reported in The Grocer and in the marketing press.

The IPM's conference and seminar programme is growing in stature and reach. As mentioned earlier, 100 people turned up to our Social Media Conference in February and the same numbers look likely for the Mobile Conference in April. More conferences are planned for the second half of 2013, including the annual fast.MAP Marketing-GAP Study, which explores how little marketers understand about what incentives actually motivate consumers.

Promomarketing.info, editing by Martin Croft, continues to deliver news round-ups every other day and regular features and comment, and visitors can now add their own comments and engage in discussions on important issues.

The Cogs, the annual award scheme which honours the crucial role played by suppliers and service partners in the success of promotions, goes from strength to strength. In 2012, over 1500 people cast over 5000 votes and the Awards lunch enjoyed the biggest turn-out ever. This year's event takes place on September 20th at the unique venue Vinopolis.

The IPM has also named breast cancer charity CoppaFeel! as its first ever official charity, and will be running a range of awareness and fundraising activities across 2013.

Your IPM continues to transform itself to ensure that it remains relevant and responsive to the needs of the industry. The following activities and initiatives will give you an outline of where we have got to and where we intend to go on your behalf in the future.

UK Issues

The subjects of promoting to children and alcohol promotions continue to be high on the agenda. They have now been joined by increasing concerns over data collection and use by marketers, particularly for behavioural targeting and by social media sites.




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The Coalition Government continues to prioritise the welfare of children and the protection of childhood. The UK advertising and marketing industry is working hard to respond to the recommendations of the Bailey Report, published in 2011, which explored the commercialisation and sexualisation of children.

The IPM is, as always, working closely with the Advertising Association to provide evidence defending promotional marketing against the criticisms being levelled at it. The IPM has also been fully supportive of the Advertising Association's 'CHECK' initiative, which provides information on best practice marketing to children.

The new Experiential Marketing Code of Conduct includes much content intended to further protect children, and the Advertising Association has directly cited the IPM's work in this area in its presentation to the Prime Minister, David Cameron, outlining the marketing industry's response to the Bailey Report.

Alcohol promotion is still under scrutiny. Pressure mounts on the marketing of alcohol in England and Wales and the UK Government plans to introduce minimum pricing on alcohol and has also said it will start a consultation process on further restrictions on irresponsible alcohol promotions, which the IPM will obviously monitor on behalf of members and respond to as necessary.

The IPM, alongside the Advertising Association, will adopt a more aggressive stance on the industry's behalf to fight an outright ban on alcohol-related promotions.

The IPM is closely monitoring promotional marketing in the digital space following the extension of the ASA's remit back in March 2011, giving it the power to apply the code to companies' own websites. The IPM believes that digital media is the 'media of choice' for promotions so this is an area of great interest to us, particularly when it comes to social media and mobile marketing.

Europe

The EU Directive on Unfair Commercial Practices.

We have had three decisions from the European Court of Justice that have made it clear that only those practices that are specifically banned by the UCP can be forbidden by EU national governments. Any national laws banning promotional marketing practices that are not listed as banned under the UCP are not valid.

It may take some time for the impact of these decisions to work its way through EU member states. Furthermore, some member states have indicated a desire to change the UCP to allow them to continue to ban a range of promotional techniques.

It is possible that some EU countries may continue to try to apply national laws restricting promotional marketing. If so, then it is likely that the relevant cases would be referred to the European Court of Justice. We will continue to monitor the situation and keep members informed.

Further advice on running promotions, whether in Northern Ireland and the rest of the UK, or in relation to other European countries, or indeed anywhere in the world, is available from the IPM's Legal Advisory Service.

The IPM continues to lobby in Brussels, at Westminster and through its direct links with the Department for Business, Innovation and Skills (BIS) and the AA. We are also members of the Integrated Marketing Communications Council (IMCC) of the European Association of Communications Agencies (EACA) and, in September 2012, Fiona Moore, managing director of IPM member agency Blue-Chip Marketing, became chair of the IMCC.

Education

Education continues to be a major driver of the IPM's agenda. Chris Bestley, our Director of Education, and Richard Pink, Associate Director, have noticeably strengthened the current program both in terms of content and new tutors.




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Over the last 12 months, they have added new courses including Measuring the Value of Experiential Campaigns, Digital Compliance and Running Promotions on Mobile, both of which have been phenomenally successful.

The IPM Diploma in Promotional Marketing, with intakes in March and October, remains the standard-setting course in promotional marketing. To ensure we provide the very best and most useful content to delegates, each module has undergone the most thorough review in the Diploma's history. An international version of the Diploma has now been launched, in conjunction with EACA.

The IPM Diploma in Motivation, now in its eighth year, continues to attract a healthy number of students.

Strategic Thinking: this one-day course, aimed at more senior marketers, is now attracting more candidates than ever before.

Shopper Marketing: another one-day course that has seen the highest attendance since launch.

Two new one day courses, Measuring the Value of Experiential and Running Promotions on Mobile, were launched, in response to requests from the industry, and have already proved popular. A Digital Compliance course launches in May 2013, and plans are afoot for a Diploma in Experiential Marketing.

In-house training. Both agencies and brand owners continue to make use of our in-house training facility, with the latter particularly interested in giving their brand management teams better understanding of promotional marketing techniques.

Partnership with the IAB. We have been working with the Internet Advertising Bureau about adding modules covering the legal aspects of running promotions online into their IAB training courses.

Institute members benefit, of course, from significant savings on the above IPM courses.

Awards

The IPM Awards 2013 continue to build on the success of and changes to our awards program made over the last four years. In spite of a tight market, entries are up 15% on 2012 and the theme of 'Made in the UK' has been well received.

Winners of this year's Awards will be invited to submit entries to the European IMC Awards and MAAW Globe Awards (winning an IPM Award is the only way that a UK campaign can qualify for entry into either the IMC Awards or the Globes).

Legal Advisory Service

The Legal Advisory Service (LAS), led by Philip Circus, Beverley Saha and Ruth Hobbs, continues to grow in stature, and is the area in which we achieve unparalleled positive feedback. This is becoming an ever more important service, particularly in the area of digital promotions. We have also seen how failure to comply can result in damage to the reputations of brands.

Given Beverley Saha's area of expertise, the IPM is now able to offer two further services - firstly, drafting and reviewing commercial contracts from client/agency agreements, and secondly trademark registrations as they apply to promotions.

Ruth Hobbs has been taking the lead on the IPM's exploration of the opportunities and threats which Social Media offer for promotional marketers and, as mentioned previously, has just launched the IPM Guide to Running Promotions on Facebook. The LAS team is now talking to Twitter about its rules.




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The IPM Seal, the consumer-facing accreditation scheme, is still available to promoters. Any promotion, in its entirety, that passes the rigorous guidelines laid down by the IPM's LAS team is awarded the Seal. The promoter may then include the Seal logo on-pack, on point-of-sale material, in ads, on direct marketing material and online as a reassurance to the consumer that the promotion is legal, decent, honest and truthful, and hence safe to participate in.

Significant savings on LAS usages are, of course, in place for Institute members.

The Institute has added to its legal support by offering advice on areas such as corporate finance, commercial property, employment law and commercial litigation. Members are able to access this advice, at very preferential rates, through our alliance with leading law firm Lewis Silkin.

Finally, the IPM can also offer legal advice on international promotions, calling upon the expertise and contacts of Phillip Circus, our Director of Legal Affairs. This service has seen a huge uptake in demand recently, and we expect that growth to continue

Joint Partnership Initiatives

A closer working relationship has been forged with the DMA, ISBA, IAB and the BCSC (British Council of Shopping Centres), with reciprocal member benefits being extended.

We worked closely with a number of trade bodies and regulatory bodies on the launch of the Experiential Marketing Code of Conduct. Among the industry bodies which have provided input to the Experiential Marketing Code of Conduct drafting process are: CAP; the Advertising Standards Authority (ASA); the Advertising Association (AA); the Incorporated Society of British Advertisers (ISBA); the Direct Marketing Association (DMA); the Portman Group; the Marketing Agencies Association (MAA); Eventia; the Public Relations Consultants Association (PRCA); the Word of Mouth Marketing Association (WOMMA); and the British Council of Shopping Centres (BCSC).

The IPM's Coupon Committee continues to campaign on the problems of Money Off Next Purchase coupon mis- and mal-redemption and fraud, particularly in the area of high value customer care vouchers. The IPM's recent negotiations with eBay have led the latter to adopt more rigorous rules for the posting of coupons and vouchers on the site with a view to criminal action being taken against guilty parties. A number of factors have driven media interest in this area: the recession and the resulting need to stretch household budgets; the rise in websites offering consumers money-saving advice; programmes about 'extreme couponing'; and court cases involving the theft or unlawful use of coupons.

As a result, there have been a number of media opportunities (on TV and radio, in the national press and online) for the IPM to highlight the problems of coupon misuse and point out the potential damage it could do, if unchecked, to UK companies.

Research and Insights

In 2010, the IPM launched its own research programme, to provide much needed data and insights into promotional effectiveness. This programme kicked off with a white paper that established, for the first time ever, an accurate estimate of the value of the promotions market - at least £36 billion. This exercise is being repeated in 2013. A number of white papers have been published, with seminars accompanying each White Paper; to date, these opportunities to network and to explore the findings of the research in more detail have been particularly well attended by brand owners and agencies.




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In 2013, the IPM is continuing its relationship with leading research agency fast.MAP, partnering the latter in the eighth annual Marketing-GAP study. This is a high-profile annual study in which consumers are asked how they respond to a range of marketing techniques and creative treatments. Marketers are then asked how they think consumers respond to those techniques and treatments. In most cases, marketers are woefully wrong. With the IPM's support, the focus of the study is now on how to close the GAP - invaluable information for marketers and their agencies.

IPM associate director Paul Godwin, who has served on the IPM Board for a number of years and was planning director of IPM agency member Positive Thinking, leads the IPM Insights programme going forward

CoppaFeel!

The IPM has named breast cancer charity CoppaFeel! as it's first ever official charity, and will be running a range of awareness and fundraising activities across 2013.

CoppaFeel! is the only cancer charity in the UK specifically dedicated to awareness and education amongst young people (particularly those aged 18 to 30). Its aim is to stamp out late detection and misdiagnosis of breast cancer by ensuring that people know the signs and symptoms of breast cancer.

CoppaFeel! was founded in October 2009 by Kristin Hallenga, who now has inoperable tumours on her spine after doctors failed to spot breast cancer not once but twice. She was 23 when she went to the doctors; she is 25 now.

The IPM is now challenging its members - brand owners, agencies and service partners alike - to come up with some innovative and effective ways to help CoppaFeel! get its message across, whether that's to their own staff or to the public. We can't let embarrassment or ignorance continue to kill young people."

Industry Representation

The Institute continues to play an active role in the direction of the promotional marketing industry:

In Europe, through our membership of EACA and FEDMA, and through lobbying in Brussels and at Westminster;

Through our active membership in or partnership with marketing industry bodies and trade organizations including AA, ASA, ASBOF, CAP, ISBA, IPA, IAB, DMA, BCSC, POPAI, PROMOTA and BPMA;

We also maintain our profile by continuing our participation in the Parliamentary Debating Group.

Member involvement/Events

Member involvement is critical to the future success of the IPM, particularly at a time when it seeks to extend its services to the industry and make people and organisations from all marketing disciplines recognise that promotions are part of what they do.

As a result, last year saw the launch of more opportunities for Members and Non-Members to engage with both the IPM and with each other through Chairman's lunches and dinners, seminars, roundtables, briefings, and through more social networking events - sporting tournaments, quizzes, and further activities up and down the country.




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Summary

The IPM is determined to make great strides in 2013 to make itself even more relevant to practitioners and brands. It will continue to educate agencies, brand owners and the industry at large about the value of promotions, not just for building sales but also for building brands long term and for changing consumers behaviour in other, non-sales related, ways.

With the initiatives that we are taking, and through the hard work of the Board and the IPM Team, I am confident that we are making the changes necessary to position us to take advantage of the opportunities that are ahead and to provide added value and confidence to businesses that promote.

Directors

The following directors have held office since 1 October 2011:

Laura Appleby

Stephen Bentley (Appointed 1 January 2012)

Samuel Blunt

Jordi Connor

Paul Dwan (Appointed 1 January 2012)

Paul Godwin (Resigned 5 January 2012)

Christopher Goldson (Resigned 28 June 2012)

Peter Kerr

Ian Moore

Alexander Meisl (Appointed 1 January 2013)

Rebecca Munday

Kimberley Ann Robinson (Appointed 1 January 2013)

Marcus Sandwith (Appointed 1 January 2013)

Bob Suppiah

Susan Speller (Resigned 31 December 2011)

John Sylvester

Matthew Tabb (Appointed 1 January 2012)

Graham Temple

Nicola Thompson

Suzi Watford (Resigned 28 June 2012)

James Williams (Resigned 7 January 2012)

Auditors

The auditors, FSPG, are deemed to be reappointed under section 487(2) of the Companies Act 2006.




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Statement of directors' responsibilities

The directors are responsible for preparing the Directors' Report and the financial statements in accordancewith applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law thedirectors have elected to prepare the financial statements in accordance with United Kingdom GenerallyAccepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under companylaw the directors must not approve the financial statements unless they are satisfied that they give a true andfair view of the state of affairs of the company and of the profit or loss of the company for that period. Inpreparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;- make judgements and accounting estimates that are reasonable and prudent;- prepare the financial statements on the going concern basis unless it is inappropriate to presume that thecompany will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explainthe company’s transactions and disclose with reasonable accuracy at any time the financial position of thecompany and enable them to ensure that the financial statements comply with the Companies Act 2006. Theyare also responsible for safeguarding the assets of the company and hence for taking reasonable steps for theprevention and detection of fraud and other irregularities.

Statement of disclosure to auditors

So far as the directors are aware, there is no relevant audit information of which the company's auditors areunaware. Additionally, the directors have taken all the necessary steps that they ought to have taken asdirectors in order to make themselves aware of all relevant audit information and to establish that thecompany's auditors are aware of that information.

This report has been prepared in accordance with the special provisions relating to small companies withinPart 15 of the Companies Act 2006.

On behalf of the board

Rebecca Munday

Director

4 April 2013


(LIMITED BY GUARANTEE)INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED

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We have audited the financial statements of The Institute of Promotional Marketing Limited for the year ended30 September 2012 set out on pages 11 to 17. The financial reporting framework that has been applied intheir preparation is applicable law and the Financial Reporting Standard for Smaller Entities (effective April2008) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities).

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 ofthe Companies Act 2006. Our audit work has been undertaken so that we might state to the company'smembers those matters we are required to state to them in an auditors' report and for no other purpose. Tothe fullest extent permitted by law, we do not accept or assume responsibility to anyone other than thecompany and the company's members as a body, for our audit work, for this report, or for the opinions wehave formed.

Respective responsibilities of directors and auditors

As explained more fully in the Directors' Responsibilities Statement set out on pages 1 - 8, the directors areresponsible for the preparation of the financial statements and for being satisfied that they give a true and fairview. Our responsibility is to audit and express an opinion on the financial statements in accordance withapplicable law and International Standards on Auditing (UK and Ireland). Those standards require us tocomply with the Auditing Practices Board'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 sufficientto give reasonable assurance that the financial statements are free from material misstatement, whethercaused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate tothe company's circumstances and have been consistently applied and adequately disclosed; thereasonableness of significant accounting estimates made by the directors; and the overall presentation of thefinancial statements. In addition, we read all the financial and non-financial information in the Directors' Reportto identify material inconsistencies with the audited financial statements. If we become aware of any apparentmaterial 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 company's affairs as at 30 September 2012 and of its profit

for the year then ended;- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice applicable to Smaller Entities; and- have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Directors' Report for the financial year for which the financialstatements are prepared is consistent with the financial statements.


(LIMITED BY GUARANTEE)INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE MEMBERS OF THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED

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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 requires us toreport to you if, in our opinion:- adequate accounting records have not been kept, or returns adequate for our audit have not been

received from branches not visited by us; or- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or- we have not received all the information and explanations we require for our audit; or- the directors were not entitled to prepare the financial statements in accordance with the small

companies regime and take advantage of the small companies' exemption in preparing the directors'report.

David Tropp (Senior Statutory Auditor)

for and on behalf of FSPG 4 April 2013

Chartered Accountants

Statutory Auditor 21 Bedford Square

London

WC1B 3HH


(LIMITED BY GUARANTEE)PROFIT AND LOSS ACCOUNT


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2012 2011

Notes £ £

Turnover 1,093,469 1,109,713

Cost of sales (434,222) (491,233)

Gross profit 659,247 618,480

Administrative expenses (641,095) (614,364)

Other operating income 500 350

Operating profit 2 18,652 4,466

Other interest receivable and similar income 3 2,471 219

Profit on ordinary activities before

taxation 21,123 4,685

Tax on profit on ordinary activities 4 (494) (92)

Surplus for the year 10 20,629 4,593


(LIMITED BY GUARANTEE)BALANCE SHEET

AS AT 30 SEPTEMBER 2012

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2012 2011

Notes £ £ £ £

Fixed assets

Tangible assets 5 4,866 12,535

Investments 6 51 51

4,917 12,586

Current assets

Debtors 7 248,056 289,994

Cash at bank and in hand 408,656 261,933

656,712 551,927

Creditors: amounts falling due within

one year 8 (501,893) (425,406)

Net current assets 154,819 126,521

Total assets less current liabilities 159,736 139,107

Capital and reserves

Profit and loss account 10 159,736 139,107

Reserves 159,736 139,107

These financial statements have been prepared in accordance with the provisions applicable to companiessubject to the small companies regime within Part 15 of the Companies Act 2006 and with the FinancialReporting Standard for Smaller Entities (effective April 2008).

Approved by the Board for issue on 4 April 2013

Rebecca Munday

Director

Company Registration No. 00975635


(LIMITED BY GUARANTEE)NOTES TO THE FINANCIAL STATEMENTS


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1 Accounting policies

1.1 Accounting convention

The financial statements are prepared under the historical cost convention and in accordance with theFinancial Reporting Standard for Smaller Entities (effective April 2008).

1.2 Compliance with accounting standards

The financial statements are prepared in accordance with applicable United Kingdom AccountingStandards (United Kingdom Generally Accepted Accounting Practice), which have been appliedconsistently (except as otherwise stated).

1.3 Turnover

Turnover represents amounts receivable for memberships and events net of VAT. Membership incomeis recognised and deferred over the period of the membership and other income is recognised in theperiod that the event takes place.

1.4 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated towrite off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings Leasehold 33% straight line

Computer equipment 20% straight line

Fixtures, fittings & equipment 20% straight line

Website Over 2 years straight line

1.5 Investments

Fixed asset investments are stated at cost less provision for diminution in value.

1.6 Pensions

The company operates a defined contribution scheme for the benefit of its employees. Contributionspayable are charged to the profit and loss account in the year they are payable.

1.7 Group accounts

The financial statements present information about the company as an individual undertaking and notabout its group. The company and its subsidiary undertaking comprise a small-sized group. Thecompany has therefore taken advantage of the exemptions provided by section 399 of the CompaniesAct 2006 not to prepare group accounts.

2 Operating profit 2012 2011

£ £

Operating profit is stated after charging:

Depreciation of tangible assets 7,669 11,736

Auditors' remuneration 6,000 7,000

During the year the directors received no emoluments (2011: £nil).


(LIMITED BY GUARANTEE)NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)


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3 Investment income 2012 2011

£ £

Bank interest 2,471 219

2,471 219

4 Taxation 2012 2011

£ £

Domestic current year tax

U.K. corporation tax 494 45

Adjustment for prior years - 47

Total current tax 494 92

5 Tangible fixed assets

Land and

buildings

Plant and

machinery etc

Total

£ £ £

Cost

At 1 October 2011 & at 30 September 2012 7,663 30,580 38,243

Depreciation

At 1 October 2011 4,215 21,493 25,708

Charge for the year 2,529 5,140 7,669

At 30 September 2012 6,744 26,633 33,377

Net book value

At 30 September 2012 919 3,947 4,866

At 30 September 2011 3,448 9,087 12,535




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6 Fixed asset investments

Shares in

group

undertakings

and

participating

interests

£

Cost

At 1 October 2011 & at 30 September 2012 51

Net book value

At 30 September 2012 51

At 30 September 2011 51

Holdings of more than 20%

The company holds more than 20% of the share capital of the following companies:

Company Country of registration or Shares held

incorporation Class %

Subsidiary undertakings

Sales Promotion Publishing Limited UK Ordinary 100.00

The aggregate amount of capital and reserves and the results of these undertakings for the last relevantfinancial year were as follows:

Capital and

reserves

Profit/(loss)

for the year

2012 2012

Principal activity £ £

Sales Promotion Publishing Limited Magazine Publishing (3,533) (8,087)

The above subsidiary undertaking ceased to trade in the year.

7 Debtors 2012 2011

£ £

Trade debtors 174,101 148,400

Amounts owed by group undertakings and undertakings in which the company has a participating interest - 63,513 Other debtors 73,955 78,081

248,056 289,994




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8 Creditors: amounts falling due within one year 2012 2011

£ £

Trade creditors 92,643 111,131

Amounts owed to group undertakings and undertakings in which the company has a participating interest 7,928 - Taxation and social security 47,438 17,472

Other creditors 353,884 296,803

501,893 425,406

Other creditors includes deferred income of £332,859 (2011: £284,792).

9 Pension costs

Defined contribution

The company operates a defined contribution pension scheme. The assets of the scheme are heldseparately from those of the company in an independently administered fund. The pension cost chargerepresents contributions payable by the company to the fund.

2012 2011

£ £

Contributions payable by the company for the year 1,577 1,914

10 Statement of movements on profit and loss account

Profit and

loss

account

£

Balance at 1 October 2011 139,107

Profit for the year 20,629

Balance at 30 September 2012 159,736




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11 Financial commitments

At 30 September 2012 the company was committed to making the following payments under non-cancellable operating leases in the year to 30 September 2013:

2012 2011

£ £

Operating leases which expire:

Between two and five years 52,000 52,000

12 Liability of members

Every Corporate Member of the Institute undertakes to contribute to the assets of the Institute, in the event of it being wound up while he is a Corporate Member or within one year afterwards, for payment of the debts and liabilities of the Institute contracted before he ceased to be a Corporate Member, and the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributors among themselves, as additional amount (after payment of the Corporate Member's outstanding liabilities to the Institute) as may be required. Such amount not to exceed the current annual membership subscription as it applies to that Corporate Member.

The liability of every Personal Member in the event of the Institute being wound up or dissolved is limited to the settlement in full of any Personal Membership subscription and other fees or dues outstanding on the date that a Winding Up Petition or other Statutory Instrument is granted by an appropriate Court.

13 Related party relationships and transactions

During the year the company charged Sales Promotion Publishing Limited £11,630 (2011: £139,219) inrespect of recharged expenses for employees services.

During the year the company was charged by Sales Promotion Publishing Limited £10,950 (2011:£52,435) in respect of recharged invoices.

Sales Promotion Publishing Limited is a subsidiary of the company.

At the year end the amount owed by the company was £7,928 (2011: £63,513 owed to the company).


(LIMITED BY GUARANTEE)DETAILED TRADING AND PROFIT AND LOSS ACCOUNT


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2012 2011

£ £ £ £

Turnover

Subscriptions 335,376 359,051

Awards entries 114,596 123,152

Awards events 84,460 89,355

Social events 87,167 34,745

Education 172,674 232,849

Other sundry income 6,139 4,546

Legal Advice Services 293,057 266,015

1,093,469 1,109,713

Cost of sales

Awards 125,864 124,238

Social events 34,338 24,405

Education 100,772 145,486

Europe (including expense) 4,333 14,596

Research and marketing 19,005 30,543

Legal advice services 149,910 151,965

(434,222) (491,233)

Gross profit 659,247 618,480

Administrative expenses (641,095) (614,364)

18,152 4,116

Other operating income

Rent receivable 500 350

Operating profit 18,652 4,466

Other interest receivable and similar income

Bank interest received 2,471 219

Profit before taxation 21,123 4,685


(LIMITED BY GUARANTEE)SCHEDULE OF ADMINISTRATIVE EXPENSES


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2012 2011

£ £

Administrative expenses

Wages and salaries (excl. N.I.) 290,627 247,141

Employer's N.I. contributions 33,341 26,614

Staff pension costs 1,577 1,914

Staff training 1,158 982

Staff redundancy 3,702 -

Rent re operating leases 66,247 64,500

Rates 29,799 25,161

Insurance 11,625 11,263

Cleaning 3,116 3,595

Repairs and maintenance 86 (1,096)

Printing, postage and stationery 7,349 13,094

Telephone 4,275 5,209

Computer running costs 4,609 1,175

Website costs 7,663 12,938

Equipment leasing 2,718 9,246

Travel, commerce, subsistence and entertaining 5,656 6,223

Advertising and public relations 9,561 9,837

Legal and prof fees 5,052 5,774

Consultancy Fees 95,987 119,078

Accountancy 22,188 6,251

Audit fees 6,000 7,000

Bank charges 5,517 6,788

Bad and doubtful debts 370 (83)

Sundry expenses 4,299 9,516

Subscriptions 10,904 10,508

Amortisation on short leasehold 2,529 2,529

Depreciation on FF & E 681 681

Depreciation on computer equipment 4,459 8,526

641,095 614,364

Documents

2012 annual accounts - IPM