Annual Report - Alzheimer's Research UK

Annual Reportand Financial Statements 2013

Alzheimer’s Research UK: the UK’s leading charity specialising in finding preventions, treatments and a cure for dementia. Visit www.alzheimersresearchuk.orgto find out more about our impact this year.

Telephone 0300 111 [email protected]

Our registered charity number is 1077089 and SC042474.

Alzheimer’s Research UK (A company limited by guarantee and not having a share capital)

Company number 3681291Registered Charity number 1077089Scottish Registered Charity number SC042474

TrusTees (DirecTors anD MeMbers)chairman DL Mayhew CBE

Deputy chairman RC Bell

Treasurer JP Battersby

other Trustees JW Fawcett PL Lantos RS Leighton H Pattinson J Tanner A Tilbe AJ Thompson

chief executive RA Wood

company secretary HB Bester

President Robin, Countess of Onslow

scienTific aDvisory boarD – aT 31 augusT 2013Prof Nigel Hooper (Chairman)Prof Johannes AttemsProf Luc BueeDr Michael ColemanProf Andrew DoigProf Nick FoxProf John Hardy FRSProf Clive HolmesProf Lesley JonesProf Chris MillerProf James NicollProf John O’BrienDr Michael O’NeillProf Stuart Pickering-BrownProf Bettina PlattProf Andrew RandallProf Karen RitchieProf Peter St George-HyslopDr Richard Wade-MartinsDr Robert WilliamsMr Dick Bell – lay observerProf James Fawcett – scientific observerProf Peter Lantos – scientific observer

our PaTronsProf Gustav Born FRSLindsay Duncan CBESir Richard Eyre

Jan MorganBaroness Susan Greenfield CBEThe Rt Hon. Baroness Jay of Paddington PC Baroness Perry of SouthwarkSir Terry Pratchett OBESir Cliff Richard OBEThe Rt Hon. Lord Robertson of Port Ellen KT GCMG Hon FRSE PCJune Spencer OBEDr Thomas Stuttaford OBEMalcolm Walker CBE

aDDress3 Riverside, Granta Park, Cambridge, CB21 6AD

LegaL sTaTusThe charity was formed as a trust under a trust deed dated 4 August 1992 and became a company limited by guarantee on 10 December 1998.

regisTereD chariTy nuMber 1077089

office of The scoTTish chariTy reguLaTor nuMber SC042474

coMPany nuMber3681291

auDiTorsBaker Tilly UK Audit LLP, Abbotsgate House, Hollow Road, Bury St Edmunds, Suffolk, IP32 7FA

bankersLloyds TSB Bank plc, Business Service Centre, Castle Park, Cambridge, CB3 0AR

Bank of Scotland, 600 George Road, Edinburgh, EX11 3XP

Barclays Bank Plc, 15 Bene’t Street, Cambridge, CB2 3PZ

soLiciTorsWithers LLP, 16 Old Bailey, London, EC4M 7EG

Taylor Vinters, Merlin Place, Milton Road, Cambridge, CB4 0DP

invesTMenT aDvisorsQuilter Cheviot, 90 Long Acre, London, WC2E 9RA

Alzheimer’s Research UK 3

ContentsLegal and administrative details

Chairman’s report

Report of the Trustees

Statement of Trustees’ responsibilities

Report of the Independent Auditors

Consolidated statement of financial activities and summary income and expenditure account

Statement of financial activities and summary income and expenditure account

Consolidated balance sheet

Charity balance sheet

Consolidated cash flow statement

Charity cash flow statement

Notes forming part of the financial statements

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Legal and administrative details

2 Alzheimer’s Research UK

We are now one of the top 10 medical research charities in the UK, and have made firm our position as the UK’s leading dementia research charity. These are major milestones for this growing and ambitious charity, and they only come as a result of your support for our pioneering work. But there is still much more to be done. Dementia is our greatest medical challenge, affecting 820,000 people in the UK today, yet research into this condition remains underfunded.

Our priority is investing in research to make the biggest advancements in understanding with the best prospects of benefiting people living with dementia. In February, we launched a new Research Strategy in Westminster. This has four main components: Responsive and Targeted Funding, New Drug Discovery, Strategic Projects and Partnerships. It pledges our commitment to identifying the earliest signs of Alzheimer’s disease and other forms of dementia and supporting research that has a clear path towards translating into patient benefit. This year, for the first time in our history, we launched a joint funding call with the Chief Scientific Office in Scotland to boost translational research in Scotland, with almost £450,000 awarded to the University of Edinburgh. This launch will continue with a host of other exciting initiatives in 2014, many working in partnership with other organisations which, like us, value innovation and are driven towards tackling our greatest medical challenge.

Our new and emerging research developments look set to make the coming period the most exciting yet for Alzheimer’s Research UK, and the most promising for people with dementia. The following two highlights are centred on bridging the gap between fundamental research and the development of new treatments. Both approaches will complement each other.

• Our new drug discovery programme is called the Dementia Consortium and is a pioneering partnership between ARUK, MRC-Technology (the Medical Research Council’s technology transfer organisation) and the pharmaceutical industry through Eisai and Eli Lilly. Playing to the strengths of all the partners, the project will help early promising academic findings to translate into patient benefit through the support of pharmaceutical development.

• Alzheimer’s Research UK has also launched a competitive funding call to establish its own Drug Discovery Institute. With a clear goal to take advantage of new science emanating from the host institution and elsewhere in the field, the plan is for the Institute to translate these ideas into new drug discovery projects.

You can read more about these bold plans and the success and highlights from our best year later in this report. In addition, we have doubled the amount any individual can apply for under our Major Grants Scheme to £2m.

We continue to play a key role in the Prime Minister’s Dementia Challenge and push for the best possible outcomes from research: people with dementia and their families deserve no less. We hold government to task to ensure all promises of increased funding are delivered. We understand that defeating dementia will take sustained and combined efforts from charity, public and private sector funders, and Alzheimer’s Research UK is going further in coordinating these efforts than ever.


Chairman’s report and such kind acts bring us closer to the day we finally defeat dementia.

We were sad to learn of the death of two of our Patrons this year. Baroness Thatcher became our Patron in May 2001 and helped us to gain greater national awareness of the need for dementia research. Sir David Frost became a Patron in 1995 and generously donated both his time and money to Alzheimer’s Research UK. Both will be greatly missed. It takes many remarkable people to make Alzheimer’s Research UK the Charity of the Year. Above all we thank you, our supporters, for believing in our scientists to lead the way towards better diagnosis, prevention and treatment. We are making progress and the pace is quickening. We are committed to ending the misery of dementia for hundreds of thousands of people living with the condition and their families. The next year holds great promise for Alzheimer’s Research UK with some major activities focused on treatment development. With your continuing help, we can put these treatments in the hands of those who need them.

My thanks to you all.

Research is at the heart of what we do at Alzheimer’s Research UK, but we also play a vital role in informing the public about dementia, its causes, available treatments and in myth busting. We made national news and attracted admiration from leading charities with the launch of The Lab (www.dementialab.org) in June. The online tool takes users on a virtual tour through laboratory environments to reveal how dementia research is carried out. Resources such as The Lab continue to break down the barriers between science and the public, sharing the challenges and hopes in dementia research. We also provide a wealth of free health information, all of which is accredited by the NHS’s Information Standard and developed in close consultation with expert reviewers and people affected by dementia.

Thanks to your support, it has been our best year yet financially with income reaching £11,037,304 – an impressive 21% increase from 2012. This encouraging level of support has helped us invest in even more pioneering research projects this year. To help us achieve these marked improvements in research funding and to realise our ambitions to go further and faster in dementia research, we have invested prudently in the organisation. We have an increasing staff base with specific expertise, finding opportunities to develop ARUK as we grow into our role as one of the UK’s leading medical research charities.

We rely on voluntary income and this year you – our fantastic supporters – have been more generous and more adventurous in fundraising than ever. From trekking the Inca Trail of Peru to treading the footpaths of Cambridgeshire in our annual Big Walk, every penny raised takes us a step closer to a cure. Many of you have supported through donations to our appeals or through direct debits, a commitment which help us make longer term plans in research.

We were delighted to be charity of the year for the Mitsubishi Motors Badminton Horse Trials in May. Recognition at such a prestigious event is evidence of a breakthrough year in making the case for dementia research. We have welcomed on board major new corporate partners in PageGroup and Insight Investment, companies who believe in our innovative approach to tackling the challenge of dementia. They joined Iceland Foods, who supported our work for a third year with another extraordinary £1m of year-round fundraising. Legacy giving formed almost a third of our income this year. We are extremely grateful to those individuals who choose to support us by remembering us in their Will

5Alzheimer’s Research UK

In October 2013, Alzheimer’s Research UK (ARUK) became the Charity Times Charity of the Year. It came in recognition of our strongest year yet in terms of research progress, fundraising, influence and campaigning. Our vision is a world free from dementia and, thanks to your record support, we have taken some important steps to help our progress towards this goal with £6.8m of new research supported.

Rebecca Wood, Alzheimer’s Research UK Chief Executive, accepting the Charity Times Charity of the Year 2013 award.

DaviD MayheW cbeCHAIRMAN, December 2013

6 Alzheimer’s Research UK 7Alzheimer’s Research UK

This is set out on page 3 of the report.

governing DocuMenT

Alzheimer’s Research UK is a charitable company limited by guarantee and does not have a share capital. In the event of the charitable company being wound up, each member has guaranteed to contribute £1. As at 31 August 2013, there were 10 members. Currently, the maximum number of Trustees is 10. The directors/Trustees are shown on page 3. We are a registered charity regulated by the Charity Commission for England and Wales and by the Office of the Scottish Charity Regulator (OSCR).

Our population is ageing and as a result dementia is set to rise. It currently affects 820,000 people in the UK and one in three over-65s will die with some form of dementia. Research is our best weapon, and Alzheimer’s Research UK is the UK’s leading dementia research charity. Our vision is a world free of dementia and we firmly believe this devastating condition can only be defeated through research. At £6.8m, our commitment to research this year was our highest figure yet.

We are currently investing nearly £21m across 121 projects at centres of dementia research excellence across the UK. We fund world-class research that covers a range of project types including major programme/project grants, fellowships, PhD scholarships, equipment, rapid response grants, extension grants, pilot projects and scientific conference grants. This year we have funded 47 new grants – every project helps us better understand the complex picture of dementia and takes us a step closer to defeating it. We are extremely grateful to everyone who makes a donation, fundraises, speaks out or volunteers for Alzheimer’s Research UK. This kind support is bringing us closer to earlier diagnosis, new treatments and a cure.

The Trustees meet five to six times a year, with the Chief Executive and other key staff in attendance, in order to consider income and make decisions on strategy and recommendations for funding. There are sub-committees involving Trustees on research strategy, fundraising and communications, personnel, finance/investments, audit/risk and strategic planning. These allow the trustees to consider issues in more detail where needed. Day-to-day management is delegated to the Chief Executive, Rebecca Wood, who reports approximately monthly in writing (when there is no Trustee meeting in the month) on income and activities and through regular discussion with the Chairman of the Trustees. Governance costs are modest and reflect the close link between staff and Trustees. Staff and Trustees work with the volunteer Scientific Advisory Board to select grant applications, funding as many of the strongest as possible, as well as looking at key strategic areas. Trustee meetings, sub-committee and Scientific Advisory Board meetings are mostly held in London for convenience and rooms are kindly provided without cost by Credit Agricole, Withers LLP Solicitors and the Wellcome Trust, for which ARUK is very grateful.

aPPoinTMenT of neW TrusTees; Their inDucTion anD Training

New Trustees are appointed on the basis of recommendation or through advertising and networking, depending on the experience and key skills needed, and after interview by the Trustees. The initial appointment of Trustees is until the December meeting and thereafter a Trustee is eligible for reappointment for three years, usually followed by a further term of three years. Exceptionally the Trustees/Directors may appoint a Trustee for a third term of three years. Trustees may require a Trustee to retire at any time by unanimous agreement (save for up to two dissenters). In view of the regular Trustee meetings, the Trustees have agreed to dispense with a formal Annual General Meeting as permitted by the Companies Act. New Trustees attend a briefing at ARUK’s offices with the Chief Executive and meet with senior staff relevant to their own specialist skills. They are given an induction pack, including the Memorandum and Articles of Association, the strategic plan, Trustee meeting minutes for the past year, the most recent full accounts and annual review plus the monthly management accounts. Those new to the role of Trustee are also given the ‘Good Trustee Guide’ from the National Council for Voluntary Organisations and ongoing training.

funDraising suPPorT grouPs

ARUK has two main fundraising groups with formal constitutions in London and Newquay, as well as groups in Cambridge and County Durham who provide informal support. These groups not only raise vital funds for us, including representing us at local events or cheque presentations, but also greatly help raise our profile and support our network of research centres and local research in their areas.

reLaTeD ParTies

Alzheimer’s Research Trading Limited is a wholly owned trading subsidiary of Alzheimer’s Research UK; it commenced trading on 1 September 2011. The principal activity of the subsidiary company during the current year was the retailing of Christmas cards and calendars.

Report of the Trustees for year ended 31 August 2013

Reference andAdministrative Details

Structure, Governance and Management

Alzheimer’s Brain Bank UK Ltd is a registered charity (number 1114578) and a company limited by guarantee (number 5762960) and has no share capital. It has two members, Alzheimer’s Research UK and Alzheimer’s Society (registered charity number 296645). The main objects of Alzheimer’s Brain Bank UK are to protect and promote the health of the public. This is undertaken by establishing, promoting and maintaining banks of brain tissue for research into the causes of, prevention, treatment and cures of Alzheimer’s disease and associated neurodegenerative diseases through the Brains for Dementia Research (BDR) programme. The first, five-year phase of BDR concluded in March 2013. It was subject to favourable expert and lay reviews at its mid-point and this secured a successful application for renewed funding. The second phase of BDR is now underway and will take place over a further five years, subject to review in year three. It will build on the success of phase one, increase the cohort of volunteer prospective donors to a target level and maintain the programme of cognitive assessments, brain banking and tissue distribution activities as a coordinated network.

risk ManageMenT

The Trustees have examined the major strategic, business and operational risks which the charity faces and confirm systems have been established to enable regular reports to be produced so that the necessary steps can be taken to reduce those risks. The Trustees have in place a consultancy at financial controller/director level to help with forecast modelling figures and to create the most informative and useful form of monthly accounts to enable expenditure on research at the highest rate, without putting ARUK at an inappropriate risk.

PubLic benefiT

We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular the Trustees consider how planned activities will contribute to the aims and objectives they have set. The public benefits from our work, through our world-class research and through our educational materials, website and campaigning to improve the outcomes of dementia research.


objecTs in The governing DocuMenT

The objects of the charity, as set out in the Memorandum and Articles of Association, are to preserve and protect the health of the public. This is undertaken by endorsing or assisting the promotion of research into the causal mechanisms of neurodegenerative diseases, with the aim of treating or preventing Alzheimer’s disease and other conditions having a similar or related cause and to disseminate the results of such research.

The Difference We aiM To Make

Our vision is a world free from dementia and to achieve this goal we fund world-class research to prevent, treat and cure dementia. We believe science and innovation hold the key to defeating dementia, so we invest through science to discover more about the condition and its causes.

Alzheimer’s Research UK prides itself on being science-led, effective, unbureaucratic and with efficient administration. Our donors know that their support of Alzheimer’s Research UK is the most effective way they can help to defeat dementia. We continuously monitor the scientific landscape and periodically update our research strategy to ensure we fund science that has the greatest potential to lead to patient benefit.

We provide 15 different grant schemes to scientists and we are currently supporting 121 research projects worth nearly £21million. Research is carried out across our Network of research centres at leading universities and teaching hospitals across the UK. Alzheimer’s Research UK depends on voluntary income, which we receive from individual donations, gifts in Wills, the generosity of charitable trusts, corporate partners and our dedicated fundraisers. We are a member of a number of government groups which help us influence policy, and we continue to campaign on the importance of dementia research to politicians in order to encourage increasing support for dementia research and make firm its status as a national priority. We are now in our second year of contributing to the Prime Minister’s Dementia Challenge and submitted our views to the planning of the G8 Summit in December, which united world leaders when the UK used its presidency to host the first global dementia summit, which we attended.

objecTives for The year anD sTraTegies To achieve TheM

Our aim is to improve diagnosis, find effective treatments, prevent or cure all forms of dementia. From basic discovery science through to clinical studies, we firmly believe research is the answer to achieving these goals, which is why we place great emphasis on investing funds in the most promising research projects.

We receive a wealth of grant applications but only invest in the ones we believe hold the greatest hope of finding ways to diagnose, treat and prevent Alzheimer’s disease, vascular dementia, dementia with Lewy bodies, frontotemporal dementia and other dementias. Alzheimer’s Research UK is a member of the Association of Medical Research Charities (AMRC) and follows their guidelines for best practice in peer review. All applications for funding are reviewed by our voluntary Scientific Advisory Board, a panel of distinguished researchers with considerable expertise in dementia.

Our Research Strategy focuses on identifying the earliest signs of the disease and supports the vital early developmental stages of new drugs. Launched in February, the new strategy is made up of four components: Responsive and Targeted Funding, New Drug Discovery, Strategic Projects and Partnerships. The research strategy attracted much support, notably from Jeremy Hunt, the Secretary of State for Health, who described it as “an important step towards our ambition to make the UK a global leader in dementia research”.

Our funding retains its flexibility and responsiveness to the best ideas from the field, but for the first time in our 21-year history we have moved to invest around a quarter of funding on targeted research that we believe will answer dementia’s crucial questions more quickly. We fund a huge variety of projects and grants from providing state-of-the-art equipment to supporting pilot grants that test new theories and ideas that may lead to the major studies and next breakthroughs. Every project must have a clear vision of the role it will play in improving the lives of people living with dementia now and in the future. This method of funding enables us to be even more flexible in the research projects we make possible. Many successful applicants to Alzheimer’s Research UK go on to secure further funding from government or industry, meaning our seed funds – made possible by you – can make possible the major studies of tomorrow.

Our scientific team works closely with the pharmaceutical industry, intending to translate the innovative academic discoveries of our teams around the UK into the first critical phases of drug discovery to help find promising new drug targets. Only by pairing the strengths of charity and government-funded research with the resources of industry can we put new treatments in the hands of those living with dementia and we can play a unique expert role here.

Strategic projects play an important part in our aim to deliver breakthroughs. The highly successful Brains for Dementia Research initiative, of which we are a joint funder with Alzheimer’s Society, addresses the shortage of brain tissue available for dementia research. Thanks to the generosity of individuals pledging to donate their brains to research, we are safeguarding what is the gold standard resource for scientific research into dementia. We stay alert to opportunities for further projects, and have embarked on an ambitious longitudinal study to help detect the early stages of the disease.

We are the UK’s leading dementia research charity but dementia research is a global effort. We form national and international partnerships where expertise, knowledge and ideas can be pooled to increase greatly the amount of dementia research being carried out. Our most recent partnership is a joint funding call with the Chief Scientific Office in Scotland where £450,000 has been made available for new projects to boost translational dementia research in Scotland. This was the first time we had been involved with a call like this with a Government agency. By forming these crucial links we are expediting work towards putting vital treatments into the hands of those living with dementia.

We co-lead the International Alzheimer’s Disease Research Funders Consortium which brings together leading voluntary and public funders of dementia research from across the world. This privileged position gives us oversight of research initiatives overseas and, through this collaboration, we can bring funders together in partnership to increase impact, and ensure effective coordination. We have recently announced we are a co-sponsor of the NC3Rs’ CRACK IT – UnTangle challenge. This innovative partnership between Alzheimer’s Research UK, government and the pharmaceutical industry is posing an inspiring challenge to the research community to develop a human stem cell-derived model of tau; one of the culprit proteins implicated in Alzheimer’s disease. This forms a crucial part of our research strategy which

is enabling drug discovery in the area of tau where we believe there is real treatment potential. Up to £100,000 of funding will be made available for phase 1 proof-of-concept studies, with up to £1million available for detailed development in phase 2.

Alzheimer’s Research UK has had its strongest financial year to date with incoming resources reaching £11,037,304 – a 21% increase from 2012. This marked increase has been made possible by our many and varied supporters, who donate, fundraise, leave us a gift in their Will and much more to make possible what we do. As our ambitions have grown so has our team at ARUK, which we have developed and increased in the past 12 months. These newly strengthened departments across the charity ensure we have the skills and knowledge in place to continue to the next stages of our four-year strategic plan and make a reality the bold plans we have to make further advances in dementia research. Our fundraisers have connected with more like-minded supporters than ever in the past year. The community fundraising team is always on hand to offer advice to supporters when they are taking part in, or holding, an event and our Fundraising Pack provides many ways in which people can raise vital funds for ARUK. We are constantly amazed at how creative our fundraisers can be, and the lengths to which many go in the name of dementia research; in one case across the Sahara on foot!

We are extremely grateful to all of our charity partnerships. We have benefitted from new and on-going relationships with a number of national companies during the past year. In February we secured a third year of support from Iceland Foods, who committed to raise a further £1m for Alzheimer’s Research UK – this will bring their total investment in dementia research to over £3m, a staggering level of support. Iceland have focused their investment on early onset Alzheimer’s disease by funding a pioneering cohort study based at University College London. We also won a partnership with global recruitment firm PageGroup. With a target to raise £200,000 over two years, this is the second largest corporate partnership in our history. PageGroup kicked their fundraising off in style by tackling the Yorkshire Three Peaks Challenge, raising a fantastic £36,000 from this event alone. Their fundraising will support two PhD scholarships to undertake critical research projects to find preventions and treatments.

Objectives and Activities


DeTaiLs of significanT acTiviTies

We are the UK’s leading dementia research charity and our commitment to ground-breaking research projects continues to reflect this. We have an International Advisory Board to consider strategy and all grant requests are reviewed by our Scientific Advisory Board. We only invest in the projects that offer the best hope for improving diagnosis, developing new treatments and preventions and pushing for a cure. We are currently funding nearly £21m of projects, which are taking place at leading institutions across the UK.

We firmly believe dementia can only be defeated through science. While investing in research remains our number one priority, we are also committed to educating the public about dementia and the progress of research, as well as campaigning for a fairer deal for dementia funding, which still lags behind other serious diseases. Some of the key developments from the past year include:

In July, we joined forces with dementia experts from across the globe at the Alzheimer’s Association International Conference (AAIC) 2013 in Boston. The event was an opportunity for professionals in the dementia field to announce their latest research findings and hear presentations discussing new research into the causes of dementia, diagnosis, risk factors, preventions, treatments and care. Scientists working on ARUK-funded projects at our network of lead research institutions in the UK gave talks on their findings, and our Director of Research, Dr Eric Karran, Head of Research, Dr Simon Ridley and Head of Leadership Giving, Dr Marie Janson, all provided commentary on the headline stories in the UK media. Studies attracting interest included: Cancer and chemotherapy linked to lower Alzheimer’s risk, Diabetes drug associated with lower dementia risk, Older age at retirement linked to dementia risk and Progress in Alzheimer’s drug trial targeting inflammation. Our attending media team provided daily coverage from the conference and our stories were picked up by The Daily Telegraph, the BBC and the Express helping connect the public with global research developments. The fight against dementia is an international effort and events like the AAIC are vital for both sharing crucial information and bringing the subject of dementia into the international spotlight.

We are committed to providing the public with engaging and accurate information about dementia.

In June, to strengthen our portfolio of health information resources, we launched The Lab at www.dementialab.org. Designed to break down the barriers between scientists and the public, The Lab takes users on a tour through photo-realistic and hospital environments to see what goes on behind those laboratory doors and see how new dementia treatments are developed. To date, The Lab has had over 25,000 viewers and news of the launch reached 2.5 million people on Twitter. As well as receiving media praise, The Lab attracted interest from government, other research charities and international funders.

All of our health information has the NHS’s Information Standard accreditation and we continue to update our library to ensure we are providing clear, reliable and useful information to those who need it. In November 2012, we produced our ‘Alzheimer’s and dementia: Your Questions Answered’ leaflet providing answers to a range of commonly-asked questions about Alzheimer’s disease and dementia. In August 2013 we sent 10 copies of this leaflet to every GP and nursing home in the UK. This consisted of a mailing of over 220,000 booklets to over 22,000 organisations. Since this original distribution we have had requests for a further 15,000 leaflets, an excellent response which underlines the public’s appetite for trustworthy information about dementia. We expect this figure to rise in the coming months.

This year, for the first time, we also included memory

clinics in our dissemination. We sent two copies of each of our nine information booklets to 138 memory clinics. The information was warmly received and a further 1,350 leaflets have been requested so far by the clinics. The response shows that our information booklets are reaching many of the hundreds of thousands of people who need them and we have received enquiries from individuals who have picked up a booklet and then contacted us for further information. In the coming months we will produce two more information pieces entitled ‘What is Alzheimer’s disease?’ and ‘What is Posterior Cortical Atrophy?’ with further titles following, and a constant review and refresh process for the entire library.

James Nesbitt challenged the public to fight the fear of dementia when he spoke at our Annual Conference in Belfast in March. The actor addressed the audience of scientists and the media and challenged the public to fight the fear of dementia with a reminder that we have beaten diseases in the past, and we would

Asset management company Insight Investment originally joined forces with Alzheimer’s Research UK with a goal to raise £50,000 over two years in order to fund a research project at the University of Bristol. After just one year of fundraising they have hit their original target and have pledged to raise a further £50,000 over the next two years, which will support a second project. We have also received invaluable support from Royal London Group, Nikon UK, Morton Fraser, Ageas50, PWC Cambridge, Savvis, Takeda Cambridge, Helm Godfrey, Drayton Manor Theme Park, BDO Norwich, Orion Publishing and London Serviced Apartments.

In June 2013 we received the exciting news that we had been chosen by the ICAP charity selection committee to be a part of the 2013 ICAP Charity Day. On this one day, the leading markets operator gives away all of its revenues and commissions to charity. The 2013 event raised an impressive £9.5m for a number of charities, bringing the total amount raised since the annual occasion began in 1993 to more than £110m. ICAP’s support for ARUK will aim to fully fund two pioneering research projects and will also help raise public awareness and understanding of dementia by funding the production and dissemination of a free information leaflet about Alzheimer’s disease, which will be distributed to GP surgeries across England.



prevail again with Alzheimer’s. Mr Nesbitt, whose mother lived with Alzheimer’s disease for 10 years until she passed away in June 2011, stressed the importance of discovering new treatments and that these would only be achieved through funding science.

We have been working with the NIHR’s (National Institute for Health Research) DeNDRoN (Dementias & Neurodegenerative Diseases Research Network) over the past year with exciting plans to improve public participation in dementia research. Currently only around 4% of people with dementia take part in any clinical studies, and there is great ambition to improve participation, with the Dementia Challenge setting a target of 10% involvement. In reality, anyone can play a role in defeating dementia by taking part in research and supporting our scientists. Alzheimer’s Research UK and our active supporters will be helping the public better understand the opportunities to get involved in research and demonstrating how any individual can become an important part of the UK dementia research effort.

Iceland Foods Ltd remains our largest corporate partnership and has named ARUK its lead charity for a third consecutive year, pledging a further £1m towards vital dementia research. This further substantial support will bring Iceland’s total investment in dementia research with ARUK to over £3m – an outstanding contribution. The funding continues to support a ground-breaking long-term study looking at early onset Alzheimer’s disease. We are extremely grateful to the whole team at Iceland for its continuous support, which is taking us closer to discovering earlier diagnosis, new treatments and a cure for dementia. It is inspiring to see just how engaged the 25,000 staff force is with our work. So many Iceland employees support us further by taking part in fundraising activities of their own, including a team of workmates from the Gravesend store who pulled a 7.5 tonne truck an impressive 1.7 miles. The relationship with Iceland provides us with opportunities to create nationwide media coverage, which is vital in informing the public of our work and bringing dementia into the spotlight.

We were delighted to be nominated by our Champion supporters Jamie and Vicki Graham to feature at the 2013 Mitsubishi Motors Badminton Horse Trials. The prestigious event, which was held in May, attracted over 200,000 visitors and we gained support from several former Olympic riders, including Richard Meade OBE, Tina Cook and William Fox-Pitt.

We recruited nearly 150 volunteers to help us raise money and awareness through activities such as manning our trade stand, selling raffle tickets, bucket collections and walks along the course. We raised over £30,000 and had the opportunity to speak about our work to thousands of people over the five-day trials. The event also attracted substantial media coverage, reaching over 1.1m people.

We continue to be amazed by our inspirational fundraisers whose money-raising efforts helped us achieve our highest ever income in 2013. We are grateful to every individual who fundraises for us, including 84-year-old Dorothy Parnell who, along with her grandson, Mark, took a giant leap of faith when she made a tandem skydive over Beccles airfield in Suffolk. Several of our supporters have taken on the Mount Kilimanjaro climb this year including Nigel Welham, Phil Rogerson and his friend Paul Fosbury and ARUK guest blogger Ben Barribal. A 100-mile cycle ride, a New York marathon swim and a 3,500km Rickshaw Run are just a small number of the innovative ways our dedicated supporters have raised funds.

Running remains one of the most popular ways for our supporters to fundraise and the last 12 months have been no exception. Natalie Dixey from Southampton was one of our Virgin London Marathon runners who was inspired to take part after her dad was diagnosed with early-onset Alzheimer’s when he was just 45. Natalie was one of 70 runners who completed the London Marathon on behalf of ARUK raising a combined total of over £100,000. The Marathon des Sables is considered the toughest footrace on earth but this didn’t deter Richmond runner Simon Martin, who battled the fierce desert conditions of the Sahara to raise over £5,000 for ARUK. Simon was running in memory of his grandfather who had a long struggle with Alzheimer’s disease.

Thanks to the support of a record number of charitable trusts and foundations this year, we have moved closer towards our goal of defeating dementia. These grant-makers play an enormously important part of our work. From small family foundations to large, national trusts, every grant makes a big difference. Forming a significant part of our income, it is thanks to the longstanding support from a number of trusts that we can make strategic commitments to research with far reaching implications. We owe a great debt to the support from trusts and foundations and, in turn, provide detailed updates on our projects as well as organising visits to meet our inspiring research scientists.

As the Prime Minister’s Dementia Challenge entered its second year, we remain committed to ensuring all research promises are delivered and the very best outcomes are generated from the doubling in money promised by government. We take an active role in the challenge, with membership of the Challenge Research Group, and ongoing talks and information exchange with the teams behind the initiative. People with dementia have been failed for many years, with inadequate research funding to meet their needs. Finally we are seeing a sea change, with real commitment put into research into dementia, a condition which carries a greater economic impact than cancer and heart disease combined. As well as working at the heart of the Dementia Challenge, we also brief and work constructively with a large number of politicians to help improve understanding of dementia and the opportunities for research. Our input helps influence debate for the benefit of people with dementia, and we have great ambitions for further policy development in the coming year to make the case for science.

use of voLunTeers

The STRUCTURE section on page 6 describes our Fundraising Support Groups. Volunteers also helped to boost our Christmas card sales through local outlets, and have supported us by representing ARUK at cheque presentations and other events.

Our Scientific Advisory Board members are all volunteers as is our Expert Referee Panel. It would be impossible for ARUK to carry out its work without them. Prof Karen Horsburgh, Prof Kevin Morgan and Prof Maria-Grazia Spillantini have now left the Board and we thank them very much for their support. In August 2013 we welcomed Prof Johannes Attems, Prof Bettina Platt, Prof Lesley Jones, Dr Michael Coleman, Dr Robert Williams, Prof Luc Buee and Dr Michael O’Neill to the Board.

Our shift in strategy from operating almost exclusively in ‘response mode’ to including more ‘directed’ and ‘strategic’ funding, as well as increasingly looking to international collaboration has highlighted the need for an independent International Advisory Board (IAB). Current IAB members include Professors David Holtzman, Bart DeStrooper, Peter Davies and Alison Goate.

Our Patrons likewise have helped us in many ways in an entirely voluntary capacity.

aLzheiMer’s research uk’s research sTraTegy

The Research Strategy is set by our Research Team in consultation with the Trustees, Chief Executive, the Scientific Advisory Board and the International Advisory Board. It covers the remit, priorities, structures and procedures of ARUK’s research funding activities. There are four core components to our Research Strategy:

1. responsive and Targeted fundingAlzheimer’s Research UK funding will continue to support the very best research from basic to clinical that improves our understanding of all the causes of dementia and improves diagnosis, prevention and treatment. Our ultimate goal is a cure.

Through the Research Strategy around a quarter of this funding will be focused on supporting targeted research that we believe will answer key questions more quickly. The elements include crucial investigations into the relationship between the two culprit proteins involved in Alzheimer’s – amyloid and tau, as well as proteins that contribute to other dementias.

2. new Drug DiscoveryTwo major new initiatives will see ARUK provide funding to help improve and expedite the translation of academic discovery science into new treatments for people living with dementia. Our major new drug discovery project – called the Dementia Consortium – is a pioneering partnership between the voluntary sector, public funding via MRC-Technology, and the pharmaceutical industry, playing to the strengths of all. We have real hopes that this initiative will lead to tangible patient benefits. In addition, Alzheimer’s Research UK has also launched a competitive funding call to establish its own Drug Discovery Institute. The centre has a clear goal to take advantage of new science emanating from the host institution and elsewhere and rapidly translate this to new drug discovery projects and to help determine new markers of disease to improve early detection and improve the accuracy of drug trials.

These bold plans will address a 10-year wait for a new treatment, and put patient benefit at the heart of the research process. These initiatives are the first of their kind in the UK and set the scene for what might be our most significant period in research in our history.


3. strategic projectsWe have had success with strategic projects in the past, including the co-funding of the Brains for Dementia Research initiative. The second five-year phase of this project began in April and we have committed 1.7m towards total funding of £3.4m. Generously donated brain tissue is vital to dementia research as it gives scientists the opportunities to begin to understand how specific symptoms of dementia relate to particular brain changes. This is vital for the development of new treatments for dementia. We will develop opportunities for further projects, including our ambitious longitudinal study working with the MRC’s 1946 Birth Cohort – a group of individuals born in that year – to help detect the very earliest stages of disease. Our Research Network linking the majority of UK academic research institutions has been running since 1998 and this year we will be unveiling a new Strategy for the Network which will build on this success. The Alborada Trust & Alzheimer’s Research UK Centre for Neurodegeneration Research is another creative strategic project bringing together some of the UK’s leading dementia scientists to exploit that latest research technology. This Centre will grow and study human brain cells derived from stem cells donated by volunteers with Alzheimer’s disease. Experts from the University of Cambridge and UCL will focus on understanding key disease mechanisms, finding out their genetic causes and finding new potential drug interventions.

4. PartnershipsDementia research is a global effort and, as one of the world’s leading charity funders, we work in partnership both nationally and internationally where expertise can be made through collaborative efforts including Sage, Bionetworks, CCNA (Canadian Consortium on Neurodegeneration in Aging), CRACK IT and CSO (Chief Scientist Office) in Scotland.

Applications for research proposals are invited every year in September and are openly advertised. Grant types include: Major programme/project, Extension, Fellowships (Preparatory Clinical, Research, Travelling and Senior), Sabbatical/Secondments, Scientific Conference, Emergency Support, PhD Scholarships and Network-related grants.

Our total number of grants available remains at 15 and the Inter-disciplinary Research Grant (IRG) scheme has been introduced. The IRG is designed to encourage researchers into dementia research who have expertise

and ideas from other areas which could benefit the field. Another development in the grant scheme is an increase in the amount that researchers can apply for in a major grant, which has risen from £1m to £2m.

The ARUK Research Network links 15 centres of excellence and funds are available to the Network Centres via small core grants, more substantive Network Cooperation grants and Emergency Support Grants. Short term success is measured by research output in the form of published papers and citations and results for the last nine months are shown on page 18. In the longer term, success comes from what happens as a result of research. ARUK is flexible in its funding and commits funds for up to five years in order to attract the best researchers. We also adhere to the Association of Medical Research Charities’ guidelines for best practice.

a record £6.8m of new grants were awarded this year:

Four major grants (total value £1,192,701) awarded to the University of Cambridge, University of Leeds, St George’s University of London and Newcastle University.

Four Senior Research Fellowships (total value £1,211,428) awarded to University College London (3) and University of Edinburgh.

One Research Fellowship (total value £152,747) awarded to University College London.

Nine pilot project grants (total value £344,032) awarded to King’s College London (3), University of Cambridge, University of Bath, University of Bristol, Aston University, University College London and Queen Mary University of London.

Six PhD Scholarships (total value £569,956) awarded to University College London, King’s College London, University of Liverpool, University of Edinburgh, University of Southampton and the Babraham Institute.

Four equipment grants (total value £169,999) awarded to University College London (2), Imperial College London and King’s College London.

Four emergency support grants (total value £94,809) awarded to University of Cambridge, University of Leeds, Imperial College London and University of Manchester.

Clinical research to find better ways to assess and diagnose dementia diseases

Key: ARUK funding

Investigationaldrugs

Clinical proof of concept study in selected populations

New ways to assess drug effects on disease

Longitudinal study of Alzheimer’s disease to define disease trajectory and identify subjects suitable for entering trials for new and existing drugs

New potential targets for drugs

Seeding drug discovery initiatives on new targets

Basic research into disease mechanisms

Targeted research intocritical disease mechanisms

Effective drugs for Alzheimer’s disease and other dementias - right drug, right patient, right time

ARUK intergrated research strategy to catalyze the development of effective dementia treatments

ARUK/Chief Scientist Office Scotland: £449,200 (half from each organisation) awarded to the University of Edinburgh.

strategic grants:

CRACK IT: £350,000 (leveraging NC3R putting in £1m further)

1946 MRC Cohort (to University College London): £1,000,000

Brains for Dementia Research: a further £773,608 for years 4 and 5 of the programme


Some of the ARUK-funded publication highlights from the past year include:

TREM2 variants in Alzheimer’s disease by Dr Rita Guerreiro et al - New England Journal of Medicine.An international team of scientists studied data from more than 25,000 people to link a rare variant of the TREM2 gene – which is known to play a role in the immune system – to a higher risk of Alzheimer’s. The researchers set out to uncover some of the rarer genetic variants involved in Alzheimer’s, in a bid to get a clearer picture of the causes of the disease. The team began by sequencing the genes of 1,092 people with Alzheimer’s and a control group of 1,107 healthy people. The results showed that several mutations in the TREM2 gene occurred more frequently in people who had the disease than in those without the disease. One specific mutation, known as R47H, had a particularly strong association with the disease. The scientists confirmed in two larger independent groups that the R47H variant was more likely to appear in people affected by Alzheimer’s than in people without the disease.

While this mutation is extremely rare, affecting just 0.3% of the population, it increases the likelihood of developing Alzheimer’s roughly three-fold – more than any of the genes that have been linked to Alzheimer’s in the last 20 years. This landmark finding is a vital step towards designing new treatments.

Active Cognitive Lifestyle Is Associated with Positive Cognitive Health Transitions and Compression of Morbidity from Age Sixty-Five by Dr Riccardo Marioni et al – PLoS one.Scientists at the University of Cambridge followed 13,004 people over a 16-year period in a study funded by Alzheimer’s Research UK, the Medical Research Council and the National Health and Medical Research Council of Australia. The participants, who were all over the age of 65, were asked about their education, mid-life occupation and social activities in later life.

The research suggests that interventions aimed at keeping the brain busy could help slow the progression towards dementia. The study is the latest in a suite of papers from the Cognitive Function and Ageing Study that have examined engagement in mentally demanding activities across the lifespan and their association with risk of dementia and cognitive decline.

A novel retro-inverso peptide inhibitor reduces amyloid deposition, oxidation and inflammation and stimulates neurogenesis in the APPswe/PS1ΔE9 mouse model of Alzheimer’s disease – PloS one.A key feature of Alzheimer’s disease is a protein called amyloid, which starts to clump together forming sticky plaques in the brain. As the disease progresses, nerve cells are damaged, leading to distressing symptoms such as memory loss and confusion. Prof David Allsop and Dr Mark Taylor at Lancaster University designed a new experimental drug that aims to prevent amyloid sticking together and forming these plaques. When they tested their drug in mice with features of Alzheimer’s, they found the compound was able to reduce the number of amyloid plaques by a third. It is hoped that further research could eventually lead to clinical trials to test the compound in people and ultimately treat people with mild memory loss who have a high risk of developing Alzheimer’s.

Deep Homology of Arthropod Central Complex and Vertebrate Basal Ganglia by Dr Nicholas J. Strausfeld and Dr Frank Hirth – Science. Scientists at King’s College London and the University of Arizona have reported ‘striking similarities’ between the brains of fruit flies and humans. Dr Nicholas J. Strausfeld, at King’s College London’s Institute of Psychiatry, and Dr Frank Hirth, of the University of Arizona, reviewed existing evidence on the development and function of the central brain regions of arthropods – such as fruit flies and crabs – and vertebrates – such as fish, mice and humans. They found evidence of similarities in the brain structures of the two groups of animals, and evidence that similar genes are involved in the formation of these brain structures. In humans, problems with the function of these central brain structures can cause a range of illnesses, including diseases that cause dementia. When parts of the central complex are affected in fruit flies, similar problems occur and the researchers argue that studying their brains could reveal important clues about diseases that cause dementia.

Prazosin, an α1-adrenoceptor antagonist, prevents memory deterioration in the APP23 transgenic mouse model of Alzheimer’s disease – Neurobiology of Aging. A drug used to treat high blood pressure may have potential benefits in Alzheimer’s disease, according to research carried out by scientists at Imperial College London.

Effective communication between brain cells is essential for normal brain function and is orchestrated by chemical messengers called neurotransmitters. The neurotransmitter noradrenaline, as well as several others, can become disrupted in particular areas of the brain during Alzheimer’s. Best known for stimulating the brain in times of stress, noradrenaline has a range of functions in the brain, including roles in memory, inflammation and the immune system. The team investigated whether drugs that affect the action of noradrenaline could provide benefits in mice showing features of Alzheimer’s. They tested a range of compounds in the laboratory and found that the drug prazosin, which can be used to relax blood vessels in people with high blood pressure, also showed potential for reducing signs of Alzheimer’s, paving the way for a new phase in which prazosin can be tested in people.

research ouTcoMes

We learn from every research project we fund and assess eventual outcomes resulting from research papers and other outputs. This year, in line with other major funders, we have introduced Researchfish to monitor impact. It is vital that we capture the outcomes of the research we fund in order to report back to the charity and our dedicated supporters. Researchfish is an online facility which offers a straightforward way for research funders to monitor the impacts of their investments and for researchers to report the outcomes of their work. The 14th annual Alzheimer’s Research UK Conference took place in Belfast in March. Attended by over 200 dementia research scientists, the event also welcomed the actor James Nesbitt who made a passionate call for an increase in dementia research funding. The highly regarded conference continues its role as the authority in the UK for knowledge sharing in dementia research and continues to bring the field together in the interests of collective progress. The Jean Corsan prize, which is awarded at the conference each year for the best scientific paper in neurodegeneration by a PhD student, was awarded to Dr Daniel Davis from Cambridge University and the David Dawbarn poster prize went to Dr Claire McDonald from Trinity College Dublin.

2013 Achievements and Performance

ReSeARCh AChIeVeMenTS

In the last 12 months ARUK awarded 47 grants, bringing our total portfolio to 480 since our work began in 1992. We are currently investing nearly £21m in projects at leading UK institutions, making us the second-largest charity-funder of dementia research in the world. Our projects range from small, pioneering pilot studies to test new ideas and theories, to large collaborative studies which can span a number of years.

The launch of our Research Strategy in February marked a new chapter in our commitment to dementia research funding. Dedicated to driving forward treatment development, the strategy is focussed on identifying the earliest signs of disease and supporting the crucial early development of potential drug treatments. There is also a new emphasis on joining academic research teams together with the pharmaceutical industry, to improve the transition of early stage results into practical pharmaceutical application.

We are the UK’s leading dementia research charity. The table below shows how ARUK’s funding acknowledgements compare with other major fundraising charities of UK dementia research. (These figures show the number of articles published in the UK acknowledging funders from 1 September 2012 – 31 August 2013. The data is from the Web of Science.)

Record Count in research articles

on topics of Alzheimer’s or

dementia

TOP 10UK ChARITIeS

Alzheimer’s Research UKAlzheimer’s SocietyParkinson’s UKBRACEBritish Heart FoundationMotor Neurone Disease AssociationStroke AssociationProgressive Supranuclear Palsy AssociationAge UKAlzheimer Scotland

1184425171610107 55

Financial Review Future Plans

2013 has seen another strong financial performance with notable improvements in all areas. headline figures extracted from the Financial Statements show;

The key backgrounD anD MoTivaTors for our Work:

Dementia affects over 820,000 people in the UK and numbers are increasing. It is projected 1million people in the UK will have dementia by 2021 and worldwide over 35 million people are living with dementia.

163,000 new cases of dementia occur in England and Wales every year or one every 3.2 minutes.

If our scientists could delay the onset of Alzheimer’s by five years, we could halve the number of people who die with the disease.

The government’s National Dementia Strategy and the Prime Minister’s Dementia Challenge continue to address key issues relating to dementia, including driving earlier diagnosis and reducing stigma, as well as increasing support for research. The fact that dementia has moved from the side-lines of politics into the mainstream proves our work is making an impact and confirms we are focusing our efforts in the right areas, and will continue to do so.

For too long dementia research hasn’t received the funding that is needed to turn scientific breakthroughs into treatments. Dementia is costing the UK economy £23 billion a year (Dementia 2010), more than cancer and heart disease combined. Despite this colossal figure, dementia research remains underfunded. The government has listened to our concerns and some extra research funding has been made available, but there are still massive disparities between the amount of research funding available for dementia in comparison to other major diseases. Only around 2.5% of government’s medical research funding is spent on dementia while a quarter is spent on cancer research. While we don’t

During the year £6.8m was committed to research projects compared to £5.6m in the previous year. Total commitments for research expenditure included in the balance sheet at 31st August 2013 were £14.1m (31st August 2012: £12.1m) of which £8.9m will be paid in the next financial year and the remainder before 2016.

invesTMenTs PoWers anD PoLicy

As set out by its constitution, ARUK has complete discretion to invest money which is not immediately required for expenditure. The performance of the investments, which are prudently managed by Quilter Cheviots, is overseen by the Investment Sub Committee which reports to the Board of Trustees. The return on our investments over the period covered by this report has exceeded market returns on comparable investments. It is the ethical policy of ARUK specifically to exclude investments in the tobacco industry.

reserves PoLicy

The Trustees are mindful of the relatively long term nature of grant liabilities; the often significant delays between recognising grant creditors in the accounts and making payments to recipients; and the considerable diversity of ARUK’s fundraising activities and asset portfolio when setting the reserves policy.

Consequently the level of the general fund is not an appropriate measure of the financial position and stability of the organisation. The Trustees therefore give careful consideration to the charity’s liquidity before entering into new financial obligations. It has been the intention of the Trustees to maintain a level of reserves equal to approximately six months operating expenditure, which will be held for future use by the charity.

begrudge a penny spent on valuable cancer research, we have to make the case for dementia, whose impact eclipses all others. We will continue our work to make dementia research a national priority.

Alzheimer’s Research UK’s committed staff has grown in the past 12 months following a strategic recruitment plan designed to deliver against our ambitious aims. We will continue in our efforts to engage with as many people as possible to increase the public’s understanding of dementia, the progress we are making with research and the difference anyone can help to make when they kindly support Alzheimer’s Research UK.

funDs heLD as cusToDian

None.

auDiTors

The auditors are Baker Tilly UK Audit LLP, as appointed at the February 2004 Trustee meeting. A resolution by the Trustees was passed to dispense with the annual reappointment of auditors.

By order of the Trustees.

roy LeighTonTRUSTEE, December 2013

DaviD MayheW cbe CHAIRMAN, December 2013

Alzheimer’s Research UK 19Alzheimer’s Research UK

Aims and key objectives for future periods, including planned activities.

It’s been a record-breaking year at Alzheimer’s Research UK but the need for more research funding remains as great as ever. Our vision for a world free from dementia hasn’t faltered and our work aims to improve the lives of those living with dementia now and in the future. Dementia can only be defeated through research and we will continue to fund the most innovative and pioneering research that offers the best hope of beating this devastating condition.

18

An increase in income of 21% (2012: 11%)

An increase in spending on charitable activities of 26% (2012: 17%)

An increase in research grant commitments entered into during the year included in charitable activities of 21% (2012: 11%)

Support costs increased by only 2.5% against much larger increases in income and research spending.

sTaTeMenT of resPonsibiLiTies of The boarD of TrusTees

The Trustees (who are also Directors of Alzheimer’s Research UK for the purposes of company law) are responsible for preparing the Trustees’ Report 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 group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing those financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles in the Charities SORP;

make judgements and 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 group and the charitable company will continue in business;

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable 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 that 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.


Statement of Trustees’ responsibilities

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 August 2013; and of the group’s and the parent charitable company’s incoming resources and application of resources, including their 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 regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

oPinion on oTher MaTTer PrescribeD by The coMPanies acT 2006

In our opinion the information given in the Trustees’ Annual Report 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 financial statements

are not in agreement with the accounting records and 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.

CLAIRE SUTHERLAND (Senior Statutory Auditor)For and on behalf of BAKER TILLY UK AUDIT LLP, Statutory Auditor Abbotsgate House, Hollow Road, Bury St EdmundsSuffolk, IP32 7FA

We have audited the group and parent charitable company’s financial statements of Alzheimers’ Research UK (“the financial statements”) for the year ended 31 August 2013 on pages 22 to 43. 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 exclusively to the members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’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 members and the charitable company’s 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, its members as a body, and its 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 Statement of Trustees’ responsibilities 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 auditors 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

A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at www.frc.org.uk/Our-Work/Codes-Standards/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Scope-of-audit/UK-Private-Sector-Entity-(issued-1-December-2010).aspx.

Independent auditor’s report to the members of Alzheimer’s Research UK

21

7 January 2014

All activities in both years derive from continuing operations. There were no recognised gains or losses other than those shown in the statement above. The accompanying notes form an integral part of these accounts.

22

Consolidated statement of financial activities and summary income and expenditure account for the year ended 31 August 2013

incoming resourcesIncoming resources from generated funds Voluntary income Activities for generating funds -Trading turnover of subsidiary Investment incomeShare of gross incoming resources from joint venture

incoming resources

Less gross incoming resources from joint venture

Total incoming resources

resources expendedCost of generating funds Cost of generating voluntary income Trading cost of subsidiary Fundraising trading Investment management costs

Charitable activities Research Information Advocacy

Governance costs

Total resources expended

net incoming/ (outgoing) resources Net interest in joint venture operating result

net incoming/ (outgoing) resources before transfersTransfer between funds

net incoming/ (outgoing) resourcesNet realised gains on investments

Surplus/ (deficit) for the yearUnrealised gains on investments

net movement in funds

Funds balance at 1 September 2012

funds balance at 31 august 2013

£

1,155,266----

1,155,266

- 1,155,266

----

1,113,270--

- 1,113,270

41,996-

41,996(669,988)

(627,992) -

(627,992)-

(627,992)

781,788

153,796

£

10,443,20199,03746,300

448,7661,775,430

12,812,734

(1,775,430) 11,037,304

2,616,62362,88530,93540,292

7,562,606 348,557149,454

148,303 10,959,655

77,649116,215

193,864-

193,86469,998

263,862 234,546

498,408

1,071,578

1,569,986

£

8,743,49067,69484,189

227,74850,213

9,173,334

(50,213) 9,123,121

2,530,91685,93928,88837,564

6,030,940273,36097,273

147,214 9,232,094

(108,973)10,517

(98,456)-

(98,456) 17,191

(81,265) 369,454

288,189

783,389

1,071,578

5

10610

7

10

15

10

10

15,16

note

£

9,287,93599,03746,300

448,766 1,775,430

11,657,468

(1,775,430) 9,882,038

2,616,623 62,88530,93540,292

6,449,336348,557149,454

148,303

9,846,385

35,653116,215

151,868669,988

821,85669,998

891,854 234,546

1,126,400

289,790 1,416,190

unrestrictedfunds

restrictedfunds

2013Total

2012Total


Charity statement of financial activities and summary income and expenditure account for the year ended 31 August 2013

Consolidated balance sheet as at 31 August 2013 Company number 3681291 Registered Charity number 1077089 Scottish Registered Charity number SC042474

25

noteunrestricted

fundsrestricted

funds2013Total

2012Total

incoming resourcesIncoming resources from generated funds Voluntary income Activities for generating funds Investment income Income from trading subsidiaryTotal incoming resources

resources expended

Cost of generating funds Cost of generating voluntary income Fundraising trading Investment management costs

Charitable activities Research Information Advocacy

Governance costs

Total resources expended

net incoming/ (outgoing) resources before transfersTransfer between funds

net incoming/ (outgoing) resourcesNet realised gains on investments

Surplus/ (deficit) for the yearUnrealised gains on investments

net movement in funds

Funds balance at 1 September 2012

funds balance at 31 august 2013

£

9,287,93599,037

448,76610,771

9,846,509

2,628,95430,94840,308

6,452,338348,695149,513

145,786 9,796,542

49,967

669,988

719,95569,998

789,953234,546

1,024,499

296,798 1,321,297

£

1,155,266---

1,155,266

---

1,113,270--

- 1,113,270

41,996

(669,988)

(627,992)-

(627,992)

-

(627,992)

781,788

153,796

£

10,443,20199,037

448,76610,771

11,001,775

2,628,95430,94840,308

7,565,508348,695149,513

145,786 10,909,812

91,963

-

91,96369,998

161,961234,546

396,507

1,078,586

1,475,093

£

8,743,49067,694

227,74833,389

9,072,321

2,548,53028,88837,564

6,030,940273,36097,273

147,214 9,163,769

(91,448)

-

(91,448)17,191

(74,257)

369,454

295,197

783,389 1,078,586

5

6

7

15

10

10

15,16

All activities in both years derive from continuing operations. There were no recognised gains or losses other than those shown in the statement above. The accompanying notes form an integral part of these accounts.

fixed assets Tangible assets Investments

current assets Stocks Debtors Investments Cash at bank

creditors: amounts falling duewithin one year

net current assets

Total assets less current liabilities

creditors: amounts falling due after more than one year

Total assets less total liabilities

funds Restricted funds Unrestricted funds General funds Designated funds Revaluation fund

910

111210

13

14

15

16

16

£

400,3705,874,5376,274,907

9,405855,528

6,698,7432,459,280

10,022,956

(9,444,681)

578,275

6,853,182

(5,283,196)

1,569,986

153,796

812,190

604,0001,569,986

£

40,6346,674,424 6,715,058

10,0871,187,477

-5,637,5936,835,157

(6,307,803)

527,354

7,242,412 (6,170,834)

1,071,578

781,788

(79,664)

369,4541,071,578

The financial statements on pages 22 to 43 were approved and authorised for issue by the Board of Trustees on 4 December 2013.

RS Leighton DL Mayhew CBETrustee Trustee

The notes on pages 29 to 43 form part of these financial statements.

note2012Total

2013Total


Charity balance sheet as at 31 August 2013 Company number 3681291 Registered Charity number 1077089 Scottish Registered Charity number SC042474

fixed assets Tangible assets Investments

current assets Debtors Investments Cash at bank

creditors: amounts falling duewithin one year

net current assets

Total assets less current liabilities

creditors: amounts falling due after more than one year

Total assets less total liabilities

funds Restricted funds Unrestricted funds General funds Designated funds Revaluation fund

note2012Total

2013Total

910

1210

13

14

15

16

16

£

400,3705,767,3096,167,679

870,2146,698,7432,434,683

10,003,640

(9,413,030)

590,610

6,758,289

(5,283,196)

1,475,093

153,796

717,297

604,0001,475,093

£

40,6346,683,907

6,724,541

1,259,156-

5,569,6666,828,822

(6,303,943)

524,879

7,249,420

(6,170,834)

1,078,586

781,788

(72,656)

369,4541,078,586

The financial statements on pages 22 to 43 were approved and authorised for issue by the Board of Trustees on 4 December 2013.

RS Leighton DL Mayhew CBETrustee Trustee


26

Consolidated cash flow statement for the year ended 31 August 2013

Net cash inflow from operating activities

Returns on investments and servicing of finance Investment income

Capital expenditure and financial investment Payments to acquire tangible fixed assets Payments to acquire investments Disposal proceeds from sale of investments

Net cash outflow before management of liquid resources and financing

Management of liquid resources Cash taken from short term deposits

Decrease in cash in the year

reconcilation of cash movement

Net cash resources at 1 September 2012


net cash resources at 31 august 2013

Reconciliation of net movement in funds to net cash flow from operating activities

All cash resources held at the year end are in the form of cash at bank.


£2,264,517

448,766

(413,995)(6,463,383)3,064,355

(1,099,740)

(2,078,573) (3,178,313)

5,637,593

(3,178,313)

2,459,280

Net movement in funds in yearInvestment incomeInvestment gainsDepreciationDecrease in stocksDecrease in debtorsIncrease in creditorsIncrease in value of joint venture investments

£288,189(227,748)(386,645)

27,99016,896

287,7291,031,813

- 1,038,224

£498,408

(448,766)(304,544)

54,259682

331,9492,249,240(116,711)

2,264,517

2012Total

2013Total

2012Total

2013Total

Alzheimer’s Research UK

£1,038,224

227,748

(20,562)(10,027,321)

3,460,997

(5,320,914)

3,479,830 (1,841,084)

7,478,677

(1,841,084)

5,637,593

Charity cash flow statement for the year ended 31 August 2013

Net cash inflow from operating activities

Returns on investments and servicing of finance Investment income

Capital expenditure and financial investment Payments to acquire tangible fixed assets Payments to acquire investments Disposal proceeds from sale of investments

Net cash outflow before management of liquid resources and financing

Management of liquid resources Cash taken from short term deposits


reconciliation of cash movement

net cash resources at 1 september 2012


net cash resources at 31 august 2013

£979,780

227,748

(20,562)(10,036,804)

3,460,997

(5,388,841)

3,479,830 (1,909,011)

7,478,677

(1,909,011)

5,569,666

Reconciliation of net movement in funds to net cash flow from operating activities

All cash resources held at the year end are in the form of cash at bank.


£2,307,847

448,766

(413,995)(6,463,383)3,064,355

(7,755,153)

(2,078,573) (3,134,983)

5,569,666

(3,134,983)

2,434,683

Net movement in funds in yearInvestment incomeInvestment gainsDepreciationDecrease in stocksDecrease in debtorsIncrease in creditors

£295,197(227,748)(386,645)

27,99026,983

216,0501,027,953 979,780

£396,507

(448,766)(304,544)

54,259-

388,9422,221,449

2,307,847


2012Total

2013Total

2012Total

2013Total

1 accounTing PoLicies

The financial statements are prepared in accordance with the Statement of Recommended Practice (SORP 2005), “Accounting and Reporting by Charities” the Companies Act 2006 and applicable accounting standards. The particular accounting policies adopted by the Trustees are described below.

Accounting conventionThe financial statements are prepared under the historical cost convention as modified by the revaluation of investments.

Fund accountingThe charity maintains various types of funds as follows:

Restricted fundsRestricted funds represent grants, donations and legacies received which are allocated by the donor for specific purposes.

Unrestricted fundsGeneral unrestricted funds represent unrestricted income which is expendable at the discretion of the trustees in the furtherance of the objects of the charity.

Fund transfersTransfers between funds represents restricted income received where expenditure has already been provided for.

Basis of consolidationThe financial statements comprise the assets, liabilities and funds, and the statement of financial activities of Alzheimer’s Research UK and its subsidiary. The financial statements also include the charity’s share of the profits or losses from joint ventures in the statement of financial activities and its share of the net assets is included in the balance sheet.

Incoming resourcesAll income is recognised in the statement of financial activities when the conditions for receipt have been met and there is reasonable assurance of receipt. Where a claim for repayment of income tax has or will be made, such income is grossed up for the tax recoverable. The following accounting policies are applied to income:

Grants receivable from government bodiesGrants are recognised in the statement of financial activities when the conditions for receipt have been complied with.


notes forming part of the financial statements for the year ended 31 August 2013

28

1 accounTing PoLicies (conTinueD)

Incoming resources (continued)Gifts in kind and donated goodsAssets given for distribution by the charity are recognised as income for the year only when they are distributed. Where such undistributed assets exist at the year end, they are not included in the accounts but a note is provided of their estimated value. Assets given for use by the charity are recognised as incoming resources at their estimated market value when receivable. If they form part of the fixed assets at the year end, they are included in the balance sheet at the value at which the gift was included in incoming resources. Assets given in kind for conversion into cash and subsequent application by the charity are recognised as income in the accounting period when receivable.

DonationsDonations and all other receipts from fundraising are reported gross and the related fundraising costs are reported in other expenditure.

Investment incomeInvestment income is accounted for when receivable. Tax recoverable relating to investment income is accounted for in the same period as the related income.

LegaciesLegacies are included in the Statement of Financial Activities when the charity is legally entitled to the distribution and the amount can be determined with certainty.

Resources expendedAll expenditure is accounted for on an accruals basis. The costs of generating funds represent expenditure incurred in general fundraising activities. Charitable activities represent expenditure incurred in issuing grants to academic institutions for research purposes, providing information about dementia and advocating for dementia research. Governance costs include expenditure in relation to the general governance of the charity. Such expenditure includes the costs incurred in relation to the constitutional and statutory arrangements of the charity. Support costs are allocated to costs of generating voluntary income, fundraising trading, investment management costs, charitable activities and governance costs using a percentage based upon the direct expenditure allocation.

30 Alzheimer’s Research UK 31

1 accounTing PoLicies (conTinueD)

Grants payableGrants payable are accounted for when the trustees have accepted a legal obligation to make the grant.

Charitable commitmentsCommitments which are legally binding on the trustees are accounted for as resources expended in the Statement of Financial Activities. Where the promise of financial support is not binding on the trustees, such intentions are accounted for by a transfer to a designated fund. Activities that are to be wholly financed from future income do not form part of such designation and are disclosed in a note to the accounts.

Tangible fixed assetsTangible fixed assets costing more than £500 are capitalised and included at cost. Depreciation is provided to write off the cost of all assets over their expected useful lives as follows: Fixtures and office equipment- 20% - 33% reducing balance Leasehold improvements- over the period of the lease

InvestmentsInvestments are stated at market value. Realised and unrealised gains and losses are shown separately in the appropriate section of the Statement of Financial Activities. Current asset investments are ring fenced investments to ensure the Charity can meet its short term liabilities. The investment in the subsidiary is included in the balance sheet at cost, less any provision for impairment in value. The investment in the joint venture is accounted for under the gross equity method.

StocksStocks are included at the lower of cost and net realisable value.

PensionsContributions made into the individual personal pension plans of employees are charged to the Statement of Financial Activities in the year in which they become payable.

LeasesThe annual rental of all operating leases are charged to the statement of financial activities on a straight line basis over the lease term.

Going concernThe use of the going concern basis of accounting is appropriate because there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the group to continue as a going concern. The group’s business activities, together with the factors likely to affect its future development, performance and position are set out in the Trustees Report on pages 6 to 22. The group currently has significant cash resources which are equivalent to the research commitments which have been made and are payable over the next five years. There are no borrowings. It is the purpose of the group to raise as much money as possible for purposes of funding research. The amount which is committed to research depends on the income raised and commitments are not made in anticipation of future income. Detailed projections are produced for the next five years which together with availability of detailed financial information enables the assessment of the level of research commitments which can be made. The Trustees are confident with the investments in infrastructure which have been made that the income levels set in the strategic plan can be met which will enable a significant increase in amounts committed to research.



Adint Charitable Trust Adnams Legacy Aedy Legacy Alborada Charitable Trust Allinson Legacy Alzheimer’s Foundation Antares Trust Askew Donation Association of Academic Old Age Psychiatrist’s Charitable Trust Attenborough Donation Awareness Trust Ballard Legacy Band Trust Banfield Legacy Bastian Legacy Bean Legacy BIG Lottery Fund Grant Biggs Legacy Billings Legacy Brazell Legacy Burgess Donation Cadogan Charity Chapman Legacy Charles & Elsie Sykes Trust Clarabut Legacy Clark Legacy Collinson Donation Constance Travis Charitable Trust Cooper Legacy Coutts and Co Craig Legacy Cullimore Charitable Trust Curtis Donation Dalkin Legacy Davies Legacy De Clifton Bligh Legacy Diggle Legacy Duttine Donation Edwards Legacy Edith Murphy Foundation Ellis Legacy Elliott Donation Emmandjay Charitable Trust Evans Donation Eveson Charitable Trust Farrington Legacy Carried forward

Brought forwardFee Legacy Fielder Legacy Flatau Donation Foxall Legacy Freeman Legacy French Legacy Garside Legacy Glenister Woodger Trust Gould Legacy Greenwood Legacy Gibson Donation Grigor Legacy Grimshaw Legacy Grundy Legacy Groveglade Trust Hampton Legacy Harding Legacy Harnell Legacy Harrington Legacy Heafey Legacy Herbert and Peter Belgrave Charitable Trust Holbeck Charitable Trust Holt Legacy Holyoake Legacy Houghton Dunn Charitable Trust Howden Legacy Hudson Legacy Hughes- Hallett Donation Hugh Fraser Foundation Hydon Donation Iceland Foods Ltd Iceland Foods Charitable Trust Jackson Legacy Jordan Charitable Foundation Jones Donation Keighley Legacy Kenworthy Donation Kinder Legacy King Legacy Kirby Laing Foundation Lawerance Donation Loke Wan Tho Memorial Foundation Lovie Legacy Lythgoe Legacy Mabel Cooper Charitable Trust Carried forward

unrestrictedfunds

unrestrictedfunds

restrictedfunds

restrictedfunds

Total2013

Total2013

Total2012

Total2012

2 grants and donations (those of £10,000 and over are detailed individually) 2 grants and donations (those of £10,000 and over are detailed individually) (continued)

£-

18,39920,000

-46,333

-50,000

---

10,000-

46,905-

10,68210,000

--

20,818-

74,903-

16,650324,939

-34,539

---

69,93846,18213,224

-50,000

375,000 150,000

-60,00036,56924,111

----

10,000-

10,0001,529,192

£1,529,192

10,000 13,089 10,00010,717 12,000

111,464--

14,716 44,516 11,500 39,245 22,500 10,954

-10,000 25,000

253,000 -

62,591 --

20,000 --

25,000 10,00090,100

-10,000

-202,702

--

12,300 --

25,000 11,889

-32,617

-10,000 32,500

-2,672,592

£-

18,39920,000

109,01646,333

-50,000

---

10,000-

46,90510,00010,68210,000

--

20,818-

74,903-

16,650324,939

-34,539

--

10,00069,93846,18213,22410,000

50,000375,000150,000

-60,00036,56924,111

----

10,00011,99310,000

1,680,201

£1,680,201

10,000 13,089 10,00010,717 12,000

111,464-

20,00014,716 44,516 11,500 39,245 22,500 10,954

-10,000 25,000

253,000 -

62,591 --

20,000 -

10,00025,000 10,00090,100

-10,000

-202,702

-10,00012,300

--

25,000 11,889

-32,617

-10,000 32,500 10,000

2,873,601

£---

109,016 ---------

10,000--------------

10,000---

10,000------------

11,993-

151,009

£151,009

-------

20,000 ----------------

10,000--------

10,000 ----------

10,000201,009

£10,000

--

138,722-

140,000-

27,40812,919

--

20,00020,000

---

16,00055,062

-90,095

-23,09310,000

-25,000 17,50015,94720,00010,000

---

10,000--

10,00014,030

--

26,12010,00071,214 15,00025,000

---

833,110

£833,110

---

35,000 --

10,000 --

175,000 ----

15,000- --

30,924 -

25,000 30,000

-29,500 10,00080,000

--

10,00010,000

139,277860,595 10,000 10,000

-547,263 10,000 25,000

-25,000

-10,000

---

2,930,669


Brought forwardMacRobert Trust Margaret Murdoch Charitable Trust Marsh Legacy Masonic Samaritan Fund Mayor Legacy McGrath Donation McGregor Legacy Miller Legacy Mitchell Legacy Morton Legacy Nash Legacy Naylor Donation Newman Legacy Oakes Legacy Osbourne Legacy Palmer Legacy Palmer Donation Peacock Trust Pearson Legacy Peter Dixon Charitable Trust Platts Donation Priestley Legacy Race Donation Ranworth Trust 1985 Reed Legacy Richards Legacy Ricketts Legacy Robert Luff Foundation Rowland Legacy Rowley Legacy Royal London RS Macdonald Charitable Trust Saintbury Trust Sawyer Legacy Shapcott Legacy Smith A Legacy Smith M Legacy Spiller Legacy Stephenson Donation Stephenson Legacy Stockman Legacy Storaid Limited Sully Legacy Swinnock Legacy Swire Charitable Trust Carried forward

unrestrictedfunds

restrictedfunds

Total2013

Total2012

2 grants and donations (those of £10,000 and over are detailed individually) (continued) 2 grants and donations (those of £10,000 and over are detailed individually) (continued)

£2,672,592

----

33,000 35,600 10,00010,00067,400 50,00023,315

-78,181 36,032 12,329

120,080- -----

25,020 -

30,258 135,465 10,000

--

84,684 ---

39,922 21,404 21,333

158,697 ---

65,000 --

10,000 87,000

3,837,312

£2,873,601

-- --

33,000 35,600 10,00010,000 67,400 50,00023,315

-78,181 36,032 12,329

120,080-

10,000 -

10,000--

25,020 -

30,258 135,465 10,000 50,000

-84,684

--

15,000 39,92221,404 21,333

158,697---

65,000 -

100,000 10,000 87,000

4,223,321

£201,009

-----------------

10,000 -

10,000-------

50,000 ----

15,000 ---------

100,000 --

386,009

£2,930,669

10,000200,000 43,106 90,862

------

30,000 21,404 97,000

---

66,253 10,000

101,82210,00010,206 60,000

-10,000

-55,000

--

10,000-

14,381 29,60010,000

----

23,00010,00055,878

-20,000

---

3,919,181

Net incoming resources for the year is stated after charging: Audit services - Charity audit services - Trading subsidiary audit services The above figures are exclusive of irrecoverable VAT Depreciation of tangible fixed assets

2013 2012

3 net incoming resources for the year

£

14,7501,950

54,259

£

14,7501,950

27,900

Brought forwardSylvia Waddilove Foundation UK T P Towle Gift Fund Talkback Thames Teague Legacy Thames Wharf Charity Thornton Donation Tinkler Legacy Thomas Legacy Thompson Donation Thompson Legacy Topham Legacy Wallis Legacy Wallis Donation Walters Legacy Whiteside Legacy Wildman Legacy Williams Legacy Wilson Donation Wise Legacy Wright Legacy Wymark Legacy Zochonis Charitable Trust Other unrestricted legacy income Other restricted legacy income Other unrestricted income Other restricted income Tax reclaimed on donations

unrestrictedfunds

restrictedfunds

Total2013

Total2012

£3,837,312

-10,000

-41,372

- 22,500

106,262 30,000 50,000 34,75610,000 26,360

- 23,405 43,395 19,304

- 22,530

-11,461 50,000

-202,369

-4,182,024

- 564,885

9,287,935

£4,223,321

-10,000

- 41,372

- 22,500

106,262 30,000 50,000 34,75610,000 26,360

- 23,405 43,395 19,304

-22,530

-11,461 50,00010,000

202,369 -

4,182,024 759,257 564,885

10,443,201

£386,009

------------------ ---

10,000 ---

759,257 -

1,155,266

£3,919,181

25,000 -

10,000 -

10,000 10,000

----- -

44,833 - --

15,259 -

75,000 --

10,000 189,494

-3,776,746

263,279 394,698

8,743,490

Government stocksBank depositsDividend income

unrestrictedTotal 2013

6 investment income

£12,14646,460

390,160448,766

£12,18695,168

120,394227,748

unrestrictedTotal 2012

number1

number-


8 grant giving

New research commitments entered into during the yearRelease of provisions no longer requiredAmount charged to the Statement of Financial Activities

Total2013

Total2012

£6,781,065(162,065)

6,619,000

£5,596,736

(107,174)5,489,562

Charitable TrustsLegacy incomeOther donationsDonated services

unrestrictedfunds

restrictedfunds

Total2013

Total2012

5 voluntary income

£442,232

3,699,7565,135,947

10,0009,287,935

£842,470

3,799,7565,790,975

10,00010,443,201

£400,238100,000655,028

-1,155,266

£1,351,9362,246,5325,135,022

10,0008,743,490

Direct costssupport costs:Human resourcesPremisesFinanceCorporateIT & office costsDepreciation

Charity

7 resources expended - group

Total2013

Total 2012

£10,089,926

333,657246,218

63,19218,449

153,98554,228

10,959,655

10,909,812

£8,696,770

94,523108,979

46,06664,256

193,51027,990

9,232,094

9,163,769

£137,593

4,5503,358

862252

2,100739

149,454

149,513

£136,533

4,5153,332

855250

2,084734

148,303

145,786

advocacy governance

research information£

6,962,452

230,240169,902

43,60512,730

106,25737,420

7,562,606

7,565,608

£320,895

10,6127,8312,010

5874,8971,725

348,557

348,695

cost of generating

income£

2,532,453

83,740 61,79515,860

4,63038,64713,610

2,750,735

2,700,210

Full-time employeesPart time employees

SalariesNational insuranceOther pension costs

2013 2012

4 information regarding employees and Trustees

number44

4

48

£1,151,468

117,982 49,169

1,318,619

number32

4

36

£911,545

83,35134,882

1,029,778

The number of employees whose emoluments exceeded £60,000 were:

£80,001 - £90,000

The above individual is a member of the defined contribution pension scheme, contributions during the year totalled £4,250. Trustees are not remunerated nor reimbursed for their travelling and related expenses. Included within creditors at the year end is £5,216 of outstanding pension contributions.

cost At 1 September 2012AdditionsDisposals

at 31 august 2013

DepreciationAt 1 September 2012Charge for the yearCharge on disposals

at 31 august 2013

net book valueat 31 august 2013

At 31 August 2012

Total

9 Tangible fixed assets

£

138,643413,995

-

552,638

98,00954,259

-

152,268

400,370

40,634

Leasehold improvements

£

-349,415

-

349,415

-35,795

-

35,795

313,620

-

fixtures and office equipment

£

138,64364,580

-

203,223

98,00918,464

-

116,473

86,750

40,634


41


Market value 1 September 2012AdditionsDisposalsRealised and unrealised investment gainsMovement in joint venture

Market value 31 august 2013

GroupCharity

cost at 31 august 2013

10 investments

11 stocks

Total2013

Total2012

shares in subsidiary

share of joint venture

investment portfolio

£10,174,254

6,463,383(3,064,355)

304,544116,711

13,994,537

13,974,537 13,867,309

13,681,566

£3,201,285

10,036,804(3,460,997)

386,64510,517

10,174,254

10,154,25410,163,737 9,692,757

£20,000

----

20,000

-

20,000

20,000

£10,517

---

116,711 127,228

127,228

- 127,228

£10,143,7376,463,383(3,064,355)

304,544-

13,847,309

13,847,30913,847,309

13,534,338

The following investments each comprise more than 5% of total investments:

Scottish Widows depositFixed depositLegal & General Index Tracking Unit Trust

Significant holdings 2013 2012

%10.00

0.004.82

%8.49

22.4922.72

UK Corporate bondsUK Bond trustsCash depositsNon UK alternative investmentsUK equity investmentsNon UK equity investments

composition of investment portfolio (quilter cheviots) 2013 2012

£6,718,8802,146,2661,431,2571,227,8151,904,647

418,444 13,847,309

£2,711,8421,536,961

-954,806

1,166,044294,254

6,663,907

IncomeExpenditure

Loss on ordinary activities

Fixed assetsNet current assets (liabilities)/assets

Net assetsFinanced by:Ordinary share capitalUnrestricted funds

groupMerchandise and products

2012

2012

2013

2013

10 investments (continued)

joint venture investmentAlzheimer’s Brain Bank (ABBUK) is a company limited by guarantee (number 5762960) and a registered charity (number 1114578). It has two members, Alzheimer’s Research UK and Alzheimer’s Society. The main objectives of the charity are to protect and promote the health of the public, in particular by establishing, promoting and maintaining banks of brain tissue for research into the cause, prevention, treatment and cure of Alzheimer’s disease and associate neurodegenerative diseases and disorders. The Charity owns a 50% share in ABBUK and its share of the net assets is £127,228, comprised £2,208,220 current assets, £741,512 current liabilities and £1,339,480 long term liabilities. ARUK’s share of voluntary income for the year totalled £1,775,430, its share of charitable expenditure is £1,657,115 and of governance is £2,100 bringing ARUK’s share of the net result to £116,215. This joint venture is accounted for in accordance with FRS 9 and the Charities SORP under the gross equity method.

subsidiary companyAlzheimer’s Research Trading Limited, registered company number 3880026, is a wholly owned subsidiary of Alzheimer’s Research UK whose profits are gift aided to its parent. The trading company receives income from the sale of merchandise with each sale helping to support our cause. The trading company has a loan owing to the charity upon which interest is charged at 2% above base rate with the loan balance of £37,500 repayable in 2015.

£84,189(85,939) (1,750)

15,7502,500

18,250

20,000(1,750)

18,250

£

10,087

£46,300

(62,885) (16,585)

14,00012,335

1,665

20,000(18,335)

1,665

£

9,405

39

Fixed asset investmentsCurrent asset investmentsCurrent investment cash

2012 group

2012 charity

2013 group

2013 charity

£6,674,424

-3,479,830

10,154,254

£6,683,907

-3,479,830

10,163,737

£5,874,537

6,698,7431,401,257

13,974,537

£5,767,3096,698,7431,401,257

13,867,309

Presentation of investments

Shares held under the heading investment portfolio are recognised at their market value, other investments are valued at cost.


groupOther debtorsCharities Aid FoundationAccrued income and prepayments

charityOther debtorsAmounts due from group undertakingsCharities Aid FoundationAccrued income and prepayments

Research commitments

ageing of long term liabilitiesDue after one year- 2015- 2016- 2017

2012 20122013 2013

£

112,22916,023

1,059,225 1,187,477

£

106,73984,03516,023

1,052,359

1,259,156

£

6,170,834

3,889,6571,825,683

455,4946,170,834

£

235,47353,281

566,774

855,528

£

235,47344,28653,281

537,174

870,214

£

5,283,196

3,544,0671,739,129

-5,283,196

12 Debtors 14 creditors: amounts falling due after more than one year – group and charity

20122013

13 creditors: amounts falling due within one year

15 Movement in and allocation of restricted funds – group and charityRestricted funds comprise the following unexpended balances of donations and grants given for specific purposes:

Programme grants Equipment Network Centres Emergency Support Iceland Charitable Trust Iceland Charitable Trust – restricted to Wales Pilot Projects Senior Research Fellowship Travelling Research Fellowship PhD The Dementia Consortium Sabbatical Scottish Government Fund S Gibson donation Conference Brains for Dementia Research Total restricted funds

Transfer to unrestricted general fundincome

balance 1 september

2012balance 31

august 2013expenditure£

(230,786) (10,000) (75,729) (5,830)

--

(71,138)(131,283)

(6,000) (136,722)

-(2,500)

----

(669,988)

£----

677,812 12,796

----

91,180 -----

781,788

£230,786 10,000 75,729 5,830

74,184 141,000

71,138 131,283

6,000 136,722

-2,500

225,000 1,500

30,575 13,019

1,155,266

£----

(751,996) -

---

(91,180)

(225,000) (1,500)

(30,575) (13,019)

(1,113,270)

£-----

153,796 -----------

153,796

The Dementia consortiumThis fund represents a grant received for the restricted purpose of developing a programme of work focussed on producing a clear strategy for dementia research in the UK. This work has been completed during the year and the grant was fully expended. iceland foods charitable Trust LimitedIncome received from Iceland Foods Limited has been restricted for two purposes, the majority of the income is restricted to fund research into early-onset Alzheimer’s. Some of the funds raised in the Welsh branches from carrier bag donations is restricted to be spent on research projects based in Wales

20122013

20122013

groupTrade creditorsAmounts owing for research expensesAccruals and deferred incomeOther taxes and social securityOther creditorsResearch commitments

charity Trade creditorsAmounts owing to group undertakingsAmounts owing for research expensesAccruals and deferred incomeOther taxes and social securityOther creditorsResearch commitments

£

219,660264,476115,352

36,8965,216

8,803,0819,444,681

£

205,256-

264,47698,41636,585

5,2168,803,0819,413,030

£

87,442206,466

43,99826,764

1,6545,941,4796,307,803

£

87,4202

206,46641,04825,874

1,6545,941,4796,303,943


General fundDesignated funds:Revaluation reservecharity unrestricted funds

General fundDesignated funds:Revaluation reservegroup unrestricted funds

The transfer from the restricted fund to the unrestricted fund represents income received during the year which carries donor imposed conditions to be expended upon specific projects. The cost of these projects has been recognised through the statement of financial activities in a prior period when the commitment was originally made and therefore when the income is received it is transferred to the unrestricted fund to follow the treatment of the charge when it was recognised. The revaluation fund represents unrealised investment gains on the investment portfolio which due to the unpredictable nature of investment valuations should not be relied upon to fund future expenditure.

Transfer from restricted

fund

balance at 31 august

2013

expenditure gains and

losses

balance at 1 september

2012 income£

(72,656)

369,454296,798

(79,664)

369,454 289,790

£669,988

-669,988

669,988

-669,988

£717,297

604,0001,321,297

812,190

604,0001,416,190

£(9,726,544)

234,546(9,491,998)

(9,660,172)

234,546(9,425,626)

£9,846,509

- 9,846,509

9,882,038

- 9,882,038

16 Movement in unrestricted funds 18 TaxationThe income and gains of the charity are exempt from corporation tax to the extent they are applied to its charitable objectives.

19 commitments under operating leases

otherExpiring within 2 – 5 yearsLand and buildingsExpiring within one yearExpiring within more than 5 years

20122013

£

1,512

62,201-

£

6,421

-148,524

groupfixed assetsTangible fixed assets Investments

current assetsStocksDebtorsCurrent asset investmentsCash at bank and in hand

creditorsDue within one yearDue in more than one year

Charity: allocated on the same basis as the group figures

Designated funds

generalfunds

restricted funds Total

17 analysis of assets and liabilities between funds

£

-604,000

---

--

604,000

604,000

£

--

---

153,796

--

153,796

153,796

£

400,3705,270,537

9,405855,528

6,698,7432,305,484

(9,444,681)(5,283,196)

812,190

717,297

£

400,3705,874,537

9,405855,528

6,698,7432,459,280

(9,444,681)(5,283,196)1,569,986

1,475,093

On 15 October 2013 a new lease was signed for additional office space, the annual rent commitment will be £171,765 expiring in more than 5 years.

21 contingent assetDuring the year to 31 August 2009 the Charity was awarded a grant of £437,240 from the BIG Lottery Fund of which £64,232 (2012: £80,362) was received in the year. The remainder of the grant, £34,468, has not been provided for as income receivable as it is contingent upon future conditions being met. These conditions, which are primarily project milestones, are considered to be outside the control of the charity and as such the charity cannot be certain that it will be received.

22 contingent liabilitiesThe charity is a member of a VAT group with Alzheimer’s Research Trading Limited all members have joint and several liability. At 31 August 2013 the amounts owed by the VAT group totalled £349. 23 capital commitmentAt the year end the charity was contracted to non cancellable commitments of £270k in respect of the refurbishment of additional office accommodation.

20 related party transactionsIn accordance with the provisions of FRS8 intragroup transactions have not been disclosed. During the year £5,826 (2012 - £12,074) was paid for legal advice from Withers LLP. AJ Thompson is a trustee and is a consultant at Withers. During the year, £285,206 (2012 - £306,212) was paid and a further £663,608 committed in respect of the Brains for Dementia Research Project (Alzheimer’s Brain Bank UK) and at the year end there is a commitment made for the project, of £1,715,837 (2012 - £1,337,435). Alzheimer’s Brain Bank UK is a Joint Venture between Alzheimer’s Research UK and Alzheimer’s Society.

Documents

Annual Report - Alzheimer's Research UK