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2009/10

Annual reportWELCOME TO YORKSHIRE ANNUAL REPORT AND ACCOUNTS

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ANNUAL REPORT AND ACCOUNTS 2009/10

Welcome to Yorkshire, working with the tourism industry, local authorities and the wider business community in Yorkshire, has delivered impressive results since it was launched almost two years ago. The renaming of the former tourist board also created a new brand for Yorkshire as part of an increased investment in tourism to £10 million annually. That investment is matched by public and private sector funding, in cash and in kind.

OUR ACHIEVEMENTS

For every £1 invested we have delivered £40 into the Yorkshire economy £86m

In turn this has generated £9 to theExchequer, £86 million total in tax

£1

£40

Invested Generated

Government

Industry

• Thevalueoftourismwentup6.6%,anincreaseof£390millionfrom2008to2009.Itisworthc.£7billiontoYorkshire’s economy, and supports 250,000 jobs directly and many more indirectly.

• In2009tripstoYorkshiretotalled216million,up10%(equivalentto19millionmorevisitors)on2008.

• Forevery£1investedwehavedelivered£40intotheYorkshireeconomy.Inturnthishasgenerated£9totheExchequer,£86milliontotalintax.

• VisitstoYorkshireareup22%sincethelaunchofWelcometoYorkshire(comparedtoUK12%increase). (SourceUKTS).

• Visitstoseasideresortsupby27%inthesameperiod.(SourceUKTS).

• 2009/10RegionalVisitorSurveyindicates97%ofvisitors would recommend Yorkshire as a place to visit with89%verylikelytoreturntoYorkshirewithin2years.

• Jan-June2010-Domesticholidayvisitsup7%inYorkshire.(3%decreaseinUK/5%decreaseinEngland).(SourceUKTS).

• Overathirdoftouristattractionsreportedanincreaseinvisitorfiguresofmorethan10%insummer2010.Thisisthe second year of increased business across the sector.

• Theofficialtourismwebsite,www.yorkshire.comhashadastaggering3.3millionuniquevisitorssincelaunch.

• Morethan£60millionworthofmediacoverageaboutYorkshire as a holiday destination has been generated since launch.

• Strongprivatesectorsupportwithmorethan3,000tourism businesses partnering Welcome to Yorkshire. The industry is now working together as a strong team.

• Morethan300YorkshirePatrons,influentialbusinessleaders and celebrities taking the Yorkshire message to a global audience.

• Strongsupportfromlocalauthorities.ThevalueofYorkshire wide marketing for tourism recognised through commitments in all Local Economic Partnershipbids.

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KEY ACTIVITIES


• Fullyintegratedmarketingcampaignsfor2009 “A Long Weekend in Yorkshire Isn’t Long Enough” and 2010“There’saWholeLotMoreGoingoninYorkshire”.ROIforthe2009campaignwas63:1.The2010campaignis not yet fully evaluated as it is still running, though preliminary indications show that it has also significantly contributed to the awareness of Yorkshire as a tourism destination.

• 5businessespartnerourlatestTVadmakingcoveragego further.

• SponsorshipofHeartbeatandTheRoyalwasseenbyatotalof4.7mABC1adults.

• Wrapped10NorthernrailtrainswithWelcometoYorkshire branding and images being seen in Yorkshire andtheNorthWestregions.

• Digitalmarketingcampaignthroughsignificantredevelopment of the Yorkshire.com, including versions inChineseand5Europeanlanguages,andadoptionofinnovative approaches such as a bluetooth mobile visitor guide.

• TheYorkshireRhubarbCrumbleandCustardgardenwinsthePeople’sChoiceAwardatChelsea.Gardenscampaign launched. Yorkshire gardens report visitors are up on last year.

Clockwise from top left: Yorkshire’s Michelin Star Chefs with Chief Executive Gary Verity in the Rhubarb Crumble & Custard Garden, 2009 campaign, Y Gardens identity, Newby Hall Garden, Branded trains, Alan Titchmarsh in our garden at Chelsea Flower Show.

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KEY ACTIVITIES


• SponsorshipoftheRailwayChildrenatthe Welcome to Yorkshire Theatre at Waterloo Station. The production has been a huge success with more than 100,000 visitors.

• TheWelcometoYorkshireScarboroughOpen Air Theatre reopens to packed houses throughout the summer.

• TheTurnerTrailislaunchedcelebratingtheartist’s work across the county.

• SupportforBradfordastheUnescoCityofFilm. Filmtraildeveloped.

• Over10,000tripshavebeentakenonthenewsightseeing bus and boat around Leeds.

• Golfcampaignlaunched.

• Yorkshire’sMichelinstarchefsgetbehindtheMichelinStar Experience celebrating the best of Yorkshire’s food.

Clockwise from top left: Michelin Star Experience,

The Railway Children at Waterloo, Y Golf identity,

Scarborough Open Air Theatre, Leeds City

Sightseeing Bus.

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KEY ACTIVITIES


• SponsorshipoftheEborandtheGoRacinginYorkshireSummerFestivalbeamsWelcometoYorkshirearoundthe globe.

• SponsorshipofYorkshireCricketkeepsourmessageon the nation’s sports pages and we invest in improving facilities at the Scarborough cricket ground.

• InternationalcampaignsareruninIreland,France,Italy,Spain,Netherlands,Germany,USA,Canada,China,Singapore,HongKong,IndiaandAustralia.

• AfilminNewYorktaxisencouragesvisitorstospendtheir vacation in Yorkshire.

• SponsorshipoftheChengduBladestakesYorkshire’smessagetoChina.

• Anewbusinesstourismstrategybrings £2 million pounds of conference sales in just sixmonths(2009/10fullyear£1.4million).

Clockwise from top left: WTY banner at Ebor, Chengdu Blades banner, Clipper sailing into New York, York Races, Yorkshire Cricket, Chengdu Blades.

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RECOGNISING OUR SUCCESS

• AwardedWorld’sLeadingMarketingCampaignatthe2010 World Travel Awards for “A Long Weekend In YorkshireIsn’tLongEnough”,againstAbuDhabi,EtihadAirways,Johannesburg,Kuoni,QatarandScotland.

• AwardedEurope’sLeadingMarketingCampaignintheWorldTravelAwards-beatingSpain,Denmark,Australia,Malaysia,Peru,ThomasCook,VisitLondon.

• ShortlistedforWorld’sLeadingTouristBoard2010–againstLasVegas,Jamaica,India,theMaldives,NewYorkandDubai.

• InternationalBusinessForumMostInnovative MarketingCampaignAward2009for“ALong Weekend in Yorkshire Isn’t Long Enough”.

• NorthernMarketingAwardforMostEffective PublicSectorCampaign2009.

• RHSChelseaSilverMedal&People’sChoiceAward fortheWelcometoYorkshireRhubarbandCustardGarden 2010.

• TravelMoleAwardforBestTourismWebsiteYorkshire.cominboth2009and2010.

• TravelMoleAwardforBestUseofVideo2010.

• TravelMarketingAwards2010. Gold AwardBestMagazineSilver AwardBestWebsite

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FOR 31 MARCH 2010

FinancialstatementsA COMPANY LIMITED BY GUARANTEE (FORMERLY YORKSHIRE TOURIST BOARD)

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8 OFFICERS AND PROFESSIONAL ADVISORS

9 THE DIRECTORS’ REPORT

12 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

14 INCOME AND EXPENDITURE ACCOUNT

15 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

16 BALANCE SHEET

17 CASH FLOW STATEMENT

18 NOTES TO THE FINANCIAL STATEMENTS

CONTENTS

OFFICERS AND PROFESSIONAL ADVISORS

CHAIRClareMorrow

EXECUTIVE DIRECTOR GaryVerity

NON EXECUTIVE DIRECTORS EBedfordOBE (resignedNovember2009) CBrown NPakey (resignedMay2010) ProfRThomas (resignedNovember2009) LPollard (appointedApril2009) CllrAWaller (appointedApril2009) CllrABarker (appointedApril2009) DLascelles (appointedApril2009) DMischendahl (appointedApril2009) GAkbar (appointedApril2009) MFirth (appointedApril2009) JAnderson (appointedNovember2009) (resignedOctober2010)

COMPANY SECRETARY SCharters (appointedNovember2009) ZWilde (resignedNovember2009)

THE BOARD OF DIRECTORS

REGISTERED OFFICE DrySandFoundryFoundrySquare Holbeck Leeds LS115DL

AUDITOR Barron&BarronCharteredAccountants &StatutoryAuditor BathurstHouse 86Micklegate York YO16LQ

BANKERS Barclays193HighStreet Northallerton DL78LF

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THE DIRECTORS’ REPORT YEAR ENDED 31 MARCH 2010

The directors present their report and the financial statements of the company for the year ended 31March2010.

CHANGE OF NAMEThecompanypassedaspecialresolutionon23November2009tochangethenameofthecompanyfromYorkshireTouristBoardtoWelcometoYorkshire.TheRegistrarofCompaniesissuedaCertificateofIncorporationon ChangeofNameon4December2009.

PRINCIPAL ACTIVITIES AND BUSINESS REVIEWThe principal activity of the company during the year was the promotion of tourism in the Yorkshire and the Humberregion.

Review of the Year This period under review in this report is from 1st April 2009to31stMarch2010,thefirstyearofathreeyearRegionalTourismProgrammecontractwiththeregionaldevelopmentagencyYorkshireForwardforincreasedinvestment in Yorkshire’s tourism industry totaling £34million,orupto£10millionplusVATperyear. (2009£6.3million)

Inadditiontothiscontract,inJanuary2010theRDAcontracted with Welcome to Yorkshire for the development anddeliveryofmajoreventsandthe“DestinationYorkshire”projecttoenhancetheeffectivenessofregionalpromotional activities, this latter project being combined with the existing contract held for Yorkshire Gold (2012Olympicactivity).Thesewerevaluedintotal at up to £1m for the year under review, and over £2m per year subsequently.

The principal activity of the company is the marketing of Yorkshire to potential visitors, within the county, across the UK and internationally. The key performance measures of thecontractarea5%increaseintourismspendannuallyand match funding of £1 from the public or private sectors foreach£1claimedfromYorkshireForward.In2009/10thevalueoftourismspendinYorkshireroseby£360million,agrowthof6.6%againstthe5%target.Matchfunding from the public and private sector was £8 million.

The year saw considerable success in raising consumer awareness of Yorkshire as a place to visit or for residents to stay in. We increased the profile of the industry as akeysectorfortheregionaleconomy,andgalvanizedbusinesses and local authorities to work together more closely as a team across the county to raise the value of the visitor economy.

Welcome to Yorkshire as a combined brand and name for thecompany(formerlytheYorkshireTouristBoard)waslaunchedinApriltotheY09tourismconference,attendedby 1,000 people from across the tourism industry and the wider Yorkshire economy.

Ourintegratedmarketingcampaign“ALongWeekendinYorkshire Isn’t Long Enough” used traditional advertising channelsaswellasaco-ordinateddigitalcampaigntoachieve a high level of awareness in both traditional and newer markets. It included television advertising andsponsorshipofITV’sHeartbeat,TheRoyaland peaktimedramaonITV3overasustainedperiod fromApriltoNovemberreaching4.7mtargetadults. This was accompanied by advertising in targeted cinemas in London and Yorkshire, an outdoor campaign including extensive coverage on poster sites at London’s main railway stations, and press and newspaper advertising. All the activity directed visitors to Yorkshire.com which wasrelaunchedinApril2009withanewfrontendwithricher content including video and high quality images. Bluetoothtechnologywasusedtogetmessagesto visitors at key sites across the region, for example LeedsBradfordairport.

TheoverallcampaignachievedaReturnonInvestmentof63:1(comparedto30:1lastyear),andreachedatotalABC1audienceof16.5m,or94%ofthetargetpopulation.

We embarked on a concerted press and media campaign to accompany the marketing, using every opportunity to get Yorkshire’s tourism product and Welcome to Yorkshire talked about in newspapers, trade press, radio andtelevision.ThisincludedtargetedactivityinChina,andSingaporeaspartofmaximizingthebenefitsoftheHullandHumberintheroundtheworldClipperrace.The vessel sailed into key ports sporting a Welcome to Yorkshire sail. The value of media activity in the year was£37millionpounds.

Thesuccessofthecampaignwasrecognizedby theindustrywithanumberofawards:

• InternationalBusinessForumMostInnovative MarketingCampaignAward2009for“ALong Weekend in Yorkshire Isn’t Long Enough”.

• NorthernMarketingAwardforMostEffective PublicSectorCampaign2009

• TravelMoleAwardforBestTourismWebsite Yorkshire.com

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The company also provides a leadership role to the industry, including advocacy and lobbying on issues of concern to operators, encouraging product development andimprovementstothequalityofthetourismofferacross Yorkshire.

Welcome to Yorkshire worked closely throughout the periodwiththesixtourismpartnerships,VisitYork,VisitHullandEastYorkshire,YorkshireSouthTourism,theMoorsandCoastTourismPartnership,theDalesandHarrogateTourismPartnershipandtheWestYorkshireTourismPartnership.Thesearevaryingmodelsof public/privatepartnershipsfundedfromarangeofsources.InmostcasesemploymentoftheChiefExecutives of the partnerships transferred to Welcome to Yorkshire and they were seconded back in to the partnerships.InWestYorkshireadifferentmodelwasestablishedinwhichtheChiefExecutiveandasmall staffwereemployeddirectlybyWelcometoYorkshire,working alongside an advisory board of public and private sector representatives.

TheChiefExecutivesofthepartnershipsformedpartofthe senior management team of Welcome to Yorkshire, inadditiontotheHeadofMarketing,InternationalSalesDirector,CommunicationsDirector,OperationsDirectorandSpecialProjectsDirector.AllreportdirectlytotheWelcometoYorkshireChiefExecutive.

The primary function of the area partnerships is business engagement, and they are funded by Welcome to Yorkshire to deliver a range of outputs, including training, the signposting of business support, initiatives to raise quality,increaseduseofICTandopportunitiestonetworkwith other tourism businesses. Welcome to Yorkshire also fundssomeconferencesalesdeskstaffthroughthesepartnerships to support our business tourism objectives.

The partnerships also undertake a range of additional activity, for which they receive funds from sources other than Welcome to Yorkshire.

Engagement with tourism businesses improved significantly over the period and confidence in the industry hasgrownasbusinesseshavestartedtoseetheeffectofthepowerfulmarketingcampaigns.TheWhiteRoseAwards which celebrate quality in the industry were attendedby850peopleandtheY09conferenceby1,000.

The public have also become increasingly engaged in what we are doing as consumer awareness of Yorkshire as a placetovisithasgrown.6,000peopleattendedourstandattheGreatYorkshireShowinJuly2009.Thisisourmainconsumer facing direct engagement activity.

The major events contract is for work securing best value fromeventsalreadycontractedbyYorkshireForward,included promotional activity, and for the development of further work around festivals and events. The remaining funding is for activity to drive the region’s involvement withthe2012OlympicsandParalympicsandforactivityencouraging a number of agencies also funded by YorkshireForwardtoworktogethertomaximizeefficiencyand avoid duplication. It has resulted in a number of joint projects.ThepartnersaretheRegionalFoodGroup,ScreenYorkshire,theArtsCouncil,andMarketingLeeds.

A number of new board members were appointed to servefromApril1st2009,bringingarangeofnewskills.RepresentativesfromourfunderYorkshireForwardandfromLocalGovernmentYorkshireandHumberjoinedtheboard at the same time.

FINANCIAL AND NON-FINANCIAL PERFORMANCE TheCompanyisaNotforProfitOrganisation(“NPO”).FundingisprimarilybygrantsthroughcontractswithYorkshireForward.AsanNPOthekeyfinancialindicatorsinclude achieving a rolling break even income and expenditureaccount,NetCurrentAssetsandNet Assetsinthebalancesheetandpositivecashflows. Anysurplusisre-investedintheaimsofthebusiness and is not available for distribution.

The accounts for the current year show a surplus onordinaryactivitiesof£31,000.At31stMarch2010NetCurrentAssetsamountedto£1,302,000(2009£1,184,000)andNetLiabilitiesof£559,000 (2009NetAssets£95,000).

ThedecreaseinNetAssetsisdueentirelytotheincreasein the liability of the company defined benefit pension scheme. The valuation of the scheme, though benefitting from comparatively good investment returns, was hit byasignificantlylowerdiscountratein2010(5.7%comparedto7.1%in2009)whichsubstantiallyincreasedthe valuation of the scheme’s liabilities. This scheme was closedinMarch2009andadefinedcontributionschemecommenced in the current year, with the aim of securing the long term financial stability for the company. Although thisisessentiallyalong-termliability,thedirectorsareinvestigating a number of options to mitigate this risk.

Cashbalancesat31stMarch2010continuetobeadequatetosupportourneeds,andreflecttheresultofordinaryactivities of the company through the timing of activities, claims and receipts at the year end.

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LOOKING AHEAD We have continued to make good progress since April 2010 with clear evidence that the additional investment intourismandourworkisprovingeffectiveinraising the value of the visitor economy.

Undoubtedly, however, the next year will see considerable challenges as we move to a new funding model. We are not immune to the issues facing public expenditure and, in particular,reductionsproposedbyYorkshireForwardforthefinal year of the funding contract. Whilst we will continue to oppose the proposed level of any such reduction, the level of proposed funding will still allow us to continue elements ofourobjectivesfor2011/12,andsustainaviablebusinessmodel whilst we also seek additional funding from other sources.Forexample,wewillcontinuetogrowpartnershipsto support our individual campaigns and are looking to utilise our highly regarded marketing skill set to generate commercial income for the company. We are also working closely with national and local government to ensure that high quality promotion of the key tourism industry for the county remains in place during and beyond the time span of the current funding contract.

We face the future with confidence and with a high level of support from across the county to continue our work. However,duetotheconsiderablecurrentuncertaintiesregarding future funding, the above should be read in conjunction with the observations regarding the basis of preparation of the financial statements in note 2 on page 20.

RESULTS

Theprofitfortheyear,aftertaxation,amountedto£31,239.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Detailsofthefinancialriskmanagementobjectivesandpolicies of the company are provided in note 20 to the financial statements.

DIRECTORS

The directors who served the company during the year and up to the date of this report are listed on page 8.

Welcome to Yorkshire is a company limited by guarantee and the directors, as members, derive no benefit, income orcapitalinterestinthecompany’sfinancialaffairs.

DIRECTORS’ RESPONSIBILITIES

ThedirectorsareresponsibleforpreparingtheDirectors’Reportandthefinancialstatementsinaccordancewithapplicable law and regulations.

Companylawrequiresthedirectorstopreparefinancialstatements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted AccountingPractice(UnitedKingdomAccountingStandardsandapplicablelaw).Undercompanylawthedirectors must not approve the financial statements unless they are satisfied that they give a true and fair view of thestateofaffairsofthecompanyandofthesurplusordeficit of the company for that period. In preparing those financialstatements,thedirectorsarerequiredto:

• selectsuitableaccountingpoliciesandthenapply them consistently;

• makejudgementsandestimatesthatarereasonable and prudent;

• preparethefinancialstatementsonthegoingconcernbasis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accountingrecordsthataresufficienttoshowandexplainthe company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements complywiththeCompaniesAct2006.Theyarealsoresponsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Insofarasthedirectorsareaware:

• thereisnorelevantauditinformationofwhichthecompany’s auditor is unaware; and

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

AUDITOR

Barron&Barronaredeemedtobere-appointedundersection487(2)oftheCompaniesAct2006.

Signed on behalf of the directors

G Verity ExecutiveDirector

Approved by the directors on

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INDEPENDENT AUDITOR’S REPORT YEAR ENDED 31 MARCH 2010

We have audited the financial statements of Welcome toYorkshirefortheyearended31March2010onpages14to33.Thefinancialreportingframeworkthathasbeen applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom GenerallyAcceptedAccountingPractice).

This report is made solely to the company’s members, asabody,inaccordancewithChapter3ofPart16oftheCompaniesAct2006.Ourauditworkhasbeenundertakenso that we might state to the company’s members 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITOR

AsexplainedmorefullyintheDirectors’ResponsibilitiesStatement set out on page 11, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Ourresponsibilityistoauditthefinancialstatementsin accordance with applicable law and International StandardsonAuditing(UKandIreland).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’s(APB’s)EthicalStandardsforAuditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS

An audit involves obtaining evidence about the amounts anddisclosuresinthefinancialstatementssufficienttogive reasonable assurance that the financial statements are free from material misstatement, whether caused by fraudorerror.Thisincludesanassessmentof:whetherthe accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by directors; and the overall presentation of the financial statements.

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INDEPENDENT AUDITOR’S REPORT YEAR ENDED 31 MARCH 2010

OPINION: DISCLAIMER ON VIEW GIVEN BY THE FINANCIAL STATEMENTS

In forming our opinion on the financial statements, we have considered the adequacy of the disclosures made in note 2 to the financial statements concerning the following material uncertainties that may cast doubt upon the ability ofthecompanytocontinueasagoingconcern:

a)YorkshireForwardandFutureFunding

b)DefinedBenefitPensionSchemeLiability

Becauseofthepotentialsignificancetothefinancialstatementsofthecombinedeffectofthemultiplematerialuncertainties referred to in the paragraph above, we are unable to form an opinion as to whether the financial statements:

• giveatrueandfairviewofthestateofthecompany’saffairsasat31March2010andofitssurplusfortheyearthen ended;

• havebeenproperlypreparedinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice;and

• havebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct2006.

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006Notwithstandingourdisclaimerofanopinionontheview given by the financial statements, in our opinion the informationgivenintheDirectors’Reportforthefinancialyear for which the financial statements are prepared is consistent with the financial statements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTIONWe have nothing to report in respect of the following matterswheretheCompaniesAct2006requiresustoreporttoyouif,inouropinion:

• adequateaccountingrecordshavenotbeenkept, or returns adequate for our audit have not been received from branches not visited by us; or

• thefinancialstatementsarenotinagreement with the accounting records and returns; or

• certaindisclosuresofdirectors’remuneration specified by law are not made; or

• wehavenotreceivedalltheinformationandexplanations we require for our audit.

GUY WARD(SeniorStatutoryAuditor)

Forandonbehalfof

BARRON & BARRON CharteredAccountants&StatutoryAuditorBathurstHouse 86Micklegate,York,YO16LQ

24November2010

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TURNOVER 3 1,008,319 1,703,868

Otheroperatingincome 4 9,603,171 6,836,769

10,611,490 8,540,637

OPERATING COSTS:

Staffcosts 5 2,138,470 1,659,710

Depreciationwrittenofffixedassets 7 – 3,712

Otheroperatingcharges 9 8,291,932 6,598,939

OPERATING SURPLUS 7 181,088 278,276

Interestreceivable 191 51,413

Interest payable and similar charges 10 (150,000) (69,105)

SURPLUS ON ORDINARY ACTIVITIES BEFORE TAXATION 31,279 260,584

Tax on surplus on ordinary activities 11 40 10,797

SURPLUS ON ORDINARY ACTIVITIES AFTER TAXATION, BEING RETAINEDSURPLUS FOR THE FINANCIAL YEAR £31,239 £249,787

Balancebroughtforward (162,769) (110,556)

Actuarialgain/(loss)inrespectofdefined benefitpensionscheme (686,000) (302,000)

Balancecarriedforward £(817,530) £(162,769)

INCOME AND EXPENDITURE ACCOUNT YEAR ENDED 31 MARCH 2010

Thenotesonpages18to33formpartofthesefinancialstatements

note 2010 £ 2009£

All of the activities of the company are classed as continuing.

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Surplus for the financial year attributabletothemembers 31,239 249,787

Unrealised loss on revaluation ofcertainfixedassets – (292,500)

31,239 (42,713)

Actuarialgain/(loss)inrespectof definedbenefitpensionscheme (686,000) (302,000)

Total gains and losses recognised sincethelastannualreport £(654,761) £(344,713)

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES YEAR ENDED 31 MARCH 2010

2010 £ 2009£


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FIXED ASSETS

Tangible assets 12 800,000 800,000

Investments 13 101 101

800,101 800,101

CURRENT ASSETS

Stocks 14 16,424 19,067

Debtors 15 1,900,183 2,156,398

Cashatbank 818,645 1,200,729

2,735,252 3,376,194

CREDITORS:

Amounts falling due within one year 16 (1,432,814) (2,191,995)

NET CURRENT ASSETS 1,302,438 1,184,199

TOTAL ASSETS LESS CURRENT LIABILITIES 2,102,539 1,984,300

NET ASSETS EXCLUDING PENSION LIABILITY £2,102,539 £1,984,300

Definedbenefitpensionschemeliability 17 (2,662,000) (1,889,000)

NET ASSETS INCLUDING PENSION LIABILITY £(559,461) £95,300

RESERVES 21

Revaluationreserve 22 258,069 258,069

Incomeandexpenditureaccount (817,530) (162,769)

MEMBERS’ FUNDS £(559,461) £95,300

These financial statements were approved by the directors and authorised for issue on24November2010,andaresignedontheirbehalfby:

CMorrow GVerity

Chair ExecutiveDirector

BALANCE SHEET AS AT 31 MARCH 2010

note 2010 £ 2009£

CompanyRegistrationNumber:2896762


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NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES 23 (371,478) 204,168

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 23 191 51,308

TAXATION 23 (10,797) (13,783)

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT 23 – 9

CASH (OUTFLOW)/INFLOW BEFORE FINANCING (382,084) 241,702

FINANCING 23 – (3,679)

(DECREASE)/INCREASE IN CASH 23 £(382,084) £238,023

CASH FLOW STATEMENT YEAR ENDED 31 MARCH 2010

note 2010 £ 2009£


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NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2010

1. ACCOUNTING POLICIES

Basis of accounting

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain fixed assets.

Asdetailedinnote13tothefinancialstatements,thecompany owns all of the issued share capital of two unquoted companies registered in England and Wales, being Yorkshire.com Limited and Yorkshire Tourist BoardLimited.

These companies are both dormant companies, and have balance sheets showing only issued share capital and associated net current assets.

Welcome to Yorkshire has not prepared group accounts fortheyearended31March2010asitconsidersthatitisexemptbyvirtueofs402oftheCompaniesAct2006.

This section states that a parent company is exempt from the requirement to prepare group accounts if under s405oftheCompaniesAct2006allofitssubsidiaryundertakings could be excluded from consolidation.

s405oftheCompaniesAct2006statesthatasubsidiaryundertaking may be excluded from consolidation if its inclusion is not material for the purpose of giving a true and fair view. As the subsidiary companies have modest issued share capital and neither are or have been active then it is considered that neither is material in the context of the group, and therefore both have been excluded from consolidation.

Turnover and Other Operating Income

Turnover

Turnover represents the amounts derived from the ordinary activities of the company and is stated after the deduction of value added tax.

Other Operating Income

Otheroperatingincomeincludesincomefrom membership and grants. The following points should bespecificallynoted:

• LocalAuthorityincomecomprisestheamountreceivable by the company from the various Local Authority members in respect of the relevant financial year;

• Witheffectfrom1April2009,membershipincomefromtourism partners such as hotels and visitor attractions is no longer receivable by Welcome to Yorkshire. Under the new network structure, this income is now receivable byoneofthesixAreaTourismPartnersintheYorkshireregion-entitiesthatareindependentofWelcome to Yorkshire.

Asisdiscussedinmoredetailinnote6tothefinancialstatements, Welcome to Yorkshire processes the membership income transactions in respect of the WestYorkshireandYorkshireDalesandHarrogate AreaTourismPartners.

Thisarrangementisineffectanagencyagreement,withtheincomebeingthatoftheAreaTourismPartnerratherthanWelcometoYorkshire-assuch,noincomeorexpenditure is recognised in these financial statements in respect of amounts processed on behalf of and subsequentlypassedontootherAreaTourismPartners.

CommissionsduetoWelcometoYorkshirefromtheAreaTourismPartnersinrespectoftheprocessingofmembership are recognised as they are earned by the company.

• YorkshireForwardgrantincomecomprisestheamountsreceivable under various funding agreements in respect of each financial year. Grant claims are submitted toYorkshireForwardinarrears,withincomebeingrecognised in the financial statements at the same time as the eligible expenditure.

Asisdiscussedinmoredetailinnote6tothefinancialstatements, Welcome to Yorkshire processes and submitsYorkshireForwardgrantfundingclaimsinrespectofthesixAreaTourismPartners.

Thisarrangementisineffectanagencyagreement;theincomeisthatoftheAreaTourismPartnerratherthanWelcome to Yorkshire, which merely oversees the claim process and has no entitlement to the resources. As such, no income or expenditure is recognised in these financial statements in respect of claims processed on behalf of and amounts subsequently passed onto otherAreaTourismPartners.


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Fixed assets

All fixed assets are initially recorded at cost. Expenditure on an item is considered to be fixed asset expenditure, and is hence capitalised, provided the asset yields benefits to the company for more than one year (i.e. has a useful economiclifeofmorethanoneyear).

It should be noted that there are cases where expenditure on an item is fully recovered under a grant funding arrangement at the time that the expenditure is incurred. In these circumstances, as any further income generated bythecompanyfromtheitem(ondisposalorotherwise)resultsinanoffsettingreductioningrantfunding,thensuch items are not considered to provide benefits to the company for more than one year.

Depreciation

Depreciationiscalculatedsoastowriteoffthecostofan asset, less its estimated residual value, over the useful economiclifeofthatassetasfollows:

OfficeEquipment- 5&3yearsstraightline

Nodepreciationischargedonfreeholdbuildingsonthegrounds that it would be immaterial as the estimated residualvalueisnotmateriallydifferentfromthecarryingamount and an impairment review is carried out each year.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Investments

Investments in unquoted subsidiary companies are stated atcostlessamountswrittenoff.

Finance lease agreements

Where the company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease. The asset is recorded in the balance sheet as a tangible fixed asset and is depreciated in accordance with the abovedepreciationpolicies.Futureinstalmentsundersuch leases, net of finance charges, are included within creditors.Rentalspayableareapportionedbetweenthefinance element, which is charged to the income and expenditure account on a straight line basis, and the capital element which reduces the outstanding obligation for future instalments.

Operating lease agreements

Rentalsapplicabletooperatingleaseswheresubstantiallyall of the benefits and risks of ownership remain with the lessor are charged against income on a straight line basis over the period of the lease.

Pension costs

The company contributes to defined contribution pension schemes in respect of certain employees. The contributions payable by the company are charged to the income and expenditure account on an accruals basis, with any outstanding contributions being included in creditors.

The company also operates a defined benefit pension scheme for certain employees. The assets of the scheme are held separately from those of the company.

Currentservicecosts,pastservicecostsandgainsandlosses on settlements and curtailments are charged to the incomeandexpenditureaccount.Pastservicecostsarerecognised over the vesting period or immediately if the benefits have vested. When a settlement (eliminating all obligationsforbenefitsalreadyaccrued)oracurtailment(reducing future obligations as a result of a material reduction in the scheme membership or a reduction in futureentitlement)occurs,theobligationandrelatedplanassetsarere-measuredusingcurrentactuarialassumptionsand the resultant gain or loss is recognised in the income and expenditure account during the period in which the settlement or curtailment occurs.

The interest cost and the expected return on assets are shown as a net amount in the income and expenditure account as other finance costs or income. Actuarial gains and losses are recognised immediately in the statement of total recognised gains and losses.

Pensionschemeassetsarevaluedatfairvalueatthebalancesheetdate.Fairvalueisbasedonmarketpriceinformation and in the case of quoted securities is thepublishedbidprice.Pensionschemeliabilitiesaremeasured on an actuarial basis using the projected unit method and are discounted to their present value using a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term totheschemeliabilities.Pensionschemesurpluses(totheextentthattheycanberecovered)anddeficitsarerecognised in full on the balance sheet.

Any deferred tax asset attributable to the defined benefit pension scheme liability is considered to be immaterial given the likely quantum of any future operating surpluses; as such, no deferred tax asset is recognised in these financial statements.


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2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTSThebalancesheetshowsanetliabilitypositionof£559,461at31March2010,primarilyasaresultofthedefinedbenefit pension scheme liability.

The directors have prepared these financial statements on a going concern basis, which assumes that the company will continue in operation for the foreseeable future.

However,attentionisdrawntothefollowingcircumstancesbeyond the directors control that may ultimately cast doubt upon the ability of the company to continue as agoingconcern:

a) Yorkshire Forward and Future Funding

As is illustrated in note 4 to the financial statements, Welcome to Yorkshire derives the majority of its income from a number of funding agreements with Yorkshire Forward,theYorkshireandHumberregional development agency.

YorkshireForwardarecontinuingtoprovidefundingtoWelcometoYorkshireintheyearto31March2011,and–subject to final agreement of terms and determination of quantum–willalsoprovidefundingtothecompanyin theyearto31March2012.

However,inmid2010itwasannouncedbytheGovernmentthat they intend to abolish the current network of regional development agencies, a proposal which is expected to takeeffectby31March2012.

ItishenceexpectedthatYorkshireForwardwillnotbeinaposition to fund the company for the financial year starting 1 April 2012.

Although the directors are seeking to obtain funding from alternative sources to allow the core activities of the company to continue beyond this date, there are no guarantees in this respect, and hence there is currently considerable uncertainty as to the outcome of current and any future negotiations with potential funders.

b) Defined Benefit Pension Scheme Liability

Asisillustratedinnote17tothefinancialstatements,the liability arising from the company’s participation in thedefinedbenefitLocalGovernmentPensionSchemeadministeredbyNorthYorkshireCountyCouncilwas£2,662,000at31March2010.

The defined benefit pension scheme deficit is treated as a long-termliabilitywithinthebalancesheet,asisthenormfor this type of liability. This assumes that the company will continue to trade, and hence, continue to contribute as required to reduce this deficit over a standard period of time.

The defined benefit pension scheme has been closed to new members, and the deficit is being addressed by increased contributions following the last triennial valuationat31March2007.

Thetriennialvaluationoftheschemeat31March2010 is currently ongoing. When the valuation is complete the company will liaise with the pension fund managers and the actuary as regards any further actions that are considered appropriate to address the deficit.

However,theuncertaintyregardingthefuturefundingposition of the company also creates an uncertainty in respect of the ability of the company to meet its current anticipated and any future ongoing liabilities to the pension fund as they fall due.

The directors have prepared these financial statements on a going concern basis as they consider that, pending the resolution of the uncertainties regarding future funding and the defined benefit pension scheme liability, the company is in a position to continue its operations at an appropriate scale and meet its contractual obligations as they fall due.

The directors will continue to monitor developments in respect of future funding and the defined benefit pension scheme liability and will make arrangements to restructure or vary the activities of the company as appropriate.

It should be noted that if appropriate ongoing funding arrangements are not agreed, and if the company were then unable to continue in operational existence for the foreseeable future then adjustments would have to be madeto:reducethebalancesheetvaluesofassetstotheirrecoverable amounts; provide for any further liabilities that mayarise;reclassifyfixedassetsandlong-termliabilitiesas current assets and liabilities as applicable. The valuation and classification of the liability in respect of the defined benefit pension scheme would also need to be considered.


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3. TURNOVER

The turnover derives from the company’s commercial activities associated with the promotion oftourismthroughoutthecountyofYorkshireandtheNorthofEnglandasfollows:-


Marketing 1,008,319 1,701,975

Miscellaneous - 1,893

1,008,319 1,703,868

2010 £ 2009£

4. OTHER OPERATING INCOME

Membership – 231,804

LocalAuthorities 285,594 282,473

YorkshireForward 9,245,870 6,322,492

Othergrantincome 71,707 –

9,603,171 6,836,769

2010 £ 2009£

5. PARTICULARS OF EMPLOYEES

Theaveragenumberofstaffemployedbythecompanyduringthefinancialyearamountedto:

WelcometoYorkshire 49 34

England’sNorthCountry 5 5

54 39

Theaggregatepayrollcostsoftheabovewere:

Wagesandsalaries 1,863,857 1,230,294

Socialsecuritycosts 158,867 89,507

Otherpensioncosts 115,746 339,909

2,138,470 1,659,710

Otherpensioncostsareamountschargedtooperatingsurplusanddonotincludeamounts chargedtofinancecosts(seenote10)andamountsrecognisedinthestatementofrecognised gains and losses.

2010 2009

2010 £ 2009£

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6. AGENCY TRANSACTIONS

WelcometoYorkshireprocessedandsubmittedtoYorkshireForwardgrantfundingclaimsinrespectofthesixAreaTourismPartnersintheamountof£2,352,264forthefinancialyearto 31March2010.Ofthisfigure,some£523,597wasreceivedfromYorkshireForwardafterthe balance sheet date.

As this funding is not considered to be income of Welcome to Yorkshire, and as no amounts are recognised in these financial statements in respect of claims processed on behalf of and amounts subsequentlypassedontootherAreaTourismPartners,thennooffsettingdebtorandcreditor has been included at the year end.

Welcome to Yorkshire also processed membership income in respect of two Area Tourism Partnersintheamountof£65,685forthefinancialyearto31March2010.


7. OPERATING SURPLUS

Operatingsurplusisstatedaftercharging:

Depreciationofownedfixedassets – 483

Depreciationofassetsheldunderfinanceleaseagreements – 3,229

Auditor’s remuneration -asauditor 9,025 7,350 -forotherservices 2,975 2,035

Operatingleasecosts: -Plantandequipment 2,735 21,010 -Other 79,485 –

2010 £ 2009£

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8. DIRECTORS’ REMUNERATION

The directors’ aggregate remuneration, including pension contributions, in respect of qualifying serviceswas:

Remunerationreceivable 257,231 317,130

Valueofcompanypensioncontributions tomoneypurchaseschemes 30,700 200,796

287,931 517,926

Remuneration of highest paid director:

Totalremuneration(excludingpensioncontributions) 169,581 108,074

Valueofcompanypensioncontributionsto moneypurchaseschemes 30,000 –

199,581 108,074

The basic salary of the highest paid director is £150,000 pa Thenumberofdirectorswhoaccruedbenefitsundercompanypensionschemeswasasfollows:

Moneypurchaseschemes 2 1

Definedbenefitschemes - 3

2010 £ 2009£


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9. OTHER OPERATING CHARGES

Marketing 8,912,818 7,008,055 Miscellaneous 1,517,584 1,250,594

10,430,402 8,258,649 Less:Staffcosts(note5) (2,138,470) (1,659,710)

8,291,932 6,598,939

2010 £ 2009£


10. INTEREST PAYABLE AND SIMILAR CHARGES

Financecharges – 105 Othersimilarchargespayable 150,000 69,000

150,000 69,105

2010 £ 2009£

11. TAXATION ON ORDINARY ACTIVITIES

(a) Analysis of charge in the year

Currenttax:

UKCorporationtaxbasedontheresultsfor theyearat21%(2009-21%) 40 10,797

Totalcurrenttax 40 10,797

Corporationtaxischargeableontaxableinterestreceived,aswellasonany operating surplus derived from commercial activities.

(b) Factors affecting current tax charge

The tax assessed on the surplus on ordinary activities for the year is lower than the standardrateofcorporationtaxintheUKof21%(2009-21%).

Surplus on ordinary activities beforetaxation 31,279 260,584

Surplusonordinaryactivitiesbyrateoftax 6,569 54,723

Nontaxabletrading (6,529) (43,926)

Totalcurrenttax(note11(a)) 40 10,797

2010 £ 2009£

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12. TANGIBLE FIXED ASSETS

COST OR VALUATION At 1 April 2009 and 31 March 2010 800,000 50,488 850,488

DEPRECIATIONAt 1 April 2009 and 31 March 2010 – 50,488 50,488

NET BOOK VALUEAt 31 March 2010 800,000 – 800,000

At 31 March 2009 800,000 – 800,000

ThepropertywasrevaluedbyJonesLangLasalleon6March2009.Therevaluationwasbasedonthe property’s existing use value. In the opinion of the directors the value of the property has not changed substantially since that date.

The historic cost of the property is £559,850.

Freehold Office Land & Buildings £ Equipment £ Total £


13. INVESTMENTS

COSTAt1April2009and31March 2010 50,151

AMOUNTS WRITTEN OFF At1April2009and31March 2010 50,050

NET BOOK VALUE At 31 March 2010 and 31 March 2009 101

Investmentsinprivatecompaniescomprise100%oftheissuedsharecapitalofthecompanieslistedbelow, both of which are registered in England and Wales.

Aggregate capital and reserves

Yorkshire.comLimited(dormant) 100 100 YorkshireTouristBoardLimited(dormant) 1 1

Profit and (loss) for the year

Yorkshire.comLimited(dormant) – – YorkshireTouristBoardLimited(dormant) – –

Undertheprovisionsofs402oftheCompaniesAct2006thecompanyisexemptfrompreparingconsolidated accounts and has not done so; the accounts therefore show information about the company as an individual entity.

PrivateCompanies£

2010 £ 2009£

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14. STOCKS

Goodsforresale 16,424 19,067

2010 £ 2009£


15. DEBTORS

Tradedebtors 212,584 90,822 VATrecoverable 12,317 – Otherdebtors 17,609 3,093 Prepaymentsandaccruedincome 1,657,673 2,062,483

1,900,183 2,156,398

2010 £ 2009£

16. CREDITORS: Amounts falling due within one year

Tradecreditors 470,257 1,421,902 Corporationtax 40 10,797 PAYEandsocialsecurity – 37,263 VAT – 22,620 Othercreditors 185,473 17,470 Accrualsanddeferredincome 777,044 681,943

1,432,814 2,191,995

2010 £ 2009£

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17. PENSIONS

The company contributes to defined contributions pensions in respect of certain employees. The contributions charged to the income and expenditure account in respect of the year to 31March2010were£35,206;thecontributionsoutstandingattheyearendandincludedin othercreditorswere£2,939.

TheCompanyparticipatesintheLocalGovernmentPensionScheme,administeredbyNorthYorkshireCountyCouncil.TheLocalGovernmentPensionSchemeisadefinedbenefitscheme based on final pensionable salary.

The actuarial information indicates that there was a deficit in the defined benefit pension fund at31March2010of£2,662,000,whichisbeingaddressedbyincreasedcompanycontributions. The company has also closed the scheme to new members.

Theamountsrecognisedintheincomeandexpenditureaccountareasfollows:

Amountschargedtooperatingprofit: Currentservicecost 60,000 151,000 Lossesonsettlementsandcurtailments 20,000 –

Total operating charge 80,000 151,000

Amountsincludedinotherfinancecost: Expectedreturnonschemeassets (167,000) (257,000) Interestonschemeliabilities 317,000 326,000

Otherfinancecost 150,000 69,000

Totalchargetotheincomeandexpenditureaccount 230,000 220,000

Actualreturnonschemeassets 1,408,000 (1,354,000)

The total operating charge is recognised in the following line items intheincomeandexpenditureaccount:

Staffcosts 80,000 151,000

The other finance cost is included in the income and expenditure account within interest payable and similar charges.

Actuariallossesof£686,000(2009:£302,000)havebeenrecognisedinthestatementoftotalrecognisedgainsandlosses.At31March2010thecumulativeamountofactuariallossesrecognisedinthestatementoftotalrecognisedgainsandlossesis£1,325,000.

2010 £ 2009£


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17. PENSIONS AND OTHER POST RETIREMENT BENEFITS (continued)

Theamountsrecognisedinthebalancesheetareasfollows:

Presentvalueoffundedobligations (6,811,000) (4,385,000) Fairvalueofschemeassets 4,149,000 2,496,000

Netpensionliability (2,662,000) (1,889,000)

Changesinthepresentvalueofthedefinedbenefitobligationschemeareasfollows:

Openingdefinedbenefitobligation 4,385,000 5,320,000 Currentservicecost 60,000 147,000 Lossesoncurtailments 20,000 – Interestonschemeliabilities 317,000 326,000 Actuarialloss/(gain) 1,927,000 (1,309,000) Contributionsbyschemeparticipants 52,000 62,000 Benefitspaid/transfers 50,000 (161,000)

Closingdefinedbenefitobligation 6,811,000 4,385,000

Changesinthefairvalueofschemeassetsareasfollows:

Openingfairvalueofschemeassets 2,496,000 3,785,000 Expectedreturnonschemeassets 167,000 257,000 Contributionsbyemployer 143,000 168,000 Contributionsbyschemeparticipants 52,000 62,000 Actuarialgain/(loss) 1,241,000 (1,611,000) Benefitspaid/transfers 50,000 (161,000) Other – (4,000)

Closingfairvalueofschemeassets 4,149,000 2,496,000

Thelimitedcompanyexpectstocontribute£126,000toitsdefinedbenefitpensionschemein theyearto31March2011;thecontributionrateremains18.2%ofpensionablesalaries.

Thefairvaluesofthemajorcategoriesofschemeassetsareasfollows:

Equities 3,162,000 1,867,000 Bonds 900,000 492,000 Cash 87,000 110,000 Otherassets – 27,000

Fairvalueofschemeassets 4,149,000 2,496,000

2010 £ 2009£


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17. PENSIONS AND OTHER POST RETIREMENT BENEFITS (continued)

Theprincipalactuarialassumptionsasatthebalancesheetdatewere:

Discountrate 5.70 7.10 Rateofincreaseinsalaries 5.25 5.05 Rateofincreaseinpensionsinpayment 3.50 3.30 Inflation 3.50 3.30

2010 % 2009%


Amountsforthecurrentandpreviousfourperiodsareasfollows:

Defined benefitobligation (6,811,000) (4,385,000) (5,320,000) (5,013,000) (5,079,000)

Fairvalueofschemeassets 4,149,000 2,496,000 3,785,000 3,996,000 3,796,000

(Deficit)/surplus inthescheme (2,662,000) (1,889,000) (1,535,000) (1,017,000) (1,283,000)

Experience adjustments on schemeliabilities(£) – – 309,000 – –

Experience adjustments on schemeassets(£) 1,241,000 (1,611,000) (514,000) – –

The experience adjustments are a requirement from 2008.

2010 £ 2009 £ 2008 £ 2007 £ 2006 £

18. COMMITMENTS UNDER OPERATING LEASES

At31March2010thecompanyhadannualcommitmentsundernon-cancellable operating leases as set out below.

Operatingleaseswhichexpire:

Within1year – – – 2,735

Within2to5years – – – 4,282

Aftermorethan5years 97,438 – – –

97,438 – – 7,017

2010 £ 2009£

Land & buildings Other Items Land&buildings OtherItems

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19. RELATED PARTY TRANSACTIONSInrespectoftransactionswithYorkshireForwardtheincomereceivablebythecompanyfortheyearwas£9,245,870(2009:£6,322,492)andthenetbalanceduetothecompanyattheyearendwas£1,480,943(2009:£1,855,229).

OtherthantransactionswithYorkshireForward,whoaremembersoftheboard,itisconsideredthatanytransactionsenteredintobythecompanywithitsnon-executivedirectorsandentitiesinwhichnon-executivedirectorsareinterestedareimmaterial.Anysuchtransactionsarecarriedoutonanarms length basis and at normal commercial rates.

The directors consider that no one party has control over the company.


20. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIESThecompanyholdsorissuesfinancialinstrumentsinordertoachievethreemainobjectives,being:to finance its operations; to manage any exposure to interest and currency risks arising from its operations and from its sources of finance; and for trading purposes.

In addition, various financial instruments (including trade debtors, trade creditors, accruals and prepayments)arisedirectlyfromthecompany’soperations.

Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below.

Interest rate risk

The company has no outstanding loan, finance or other agreements upon which interest is payable; as such the company considers that is has no significant interest rate risk exposure.

Credit risk

The company monitors credit risk closely and considers that its current policy meets its objectives of managing exposure to credit risk.

The company has no significant concentrations of credit risk. Amounts shown in the balance sheet best represent the maximum credit risk exposure in the event other parties fail to perform their obligations under financial instruments.

Liquidity risk

Thecompanymonitorsliquidityrisksarisingfromcashflowandcashmanagementonanongoingbasis,throughmechanismsincludingthepreparationofbudgetsandcashflowforecasts.

Itmaybenotedthatasat31March2010noneofthecompany’scashreservesareheldinfixed term deposit accounts or other illiquid assets.

Currency risk

The company does engage in foreign currency transactions, but does not use instruments such as forward or futures contracts. The company considers that its exposure to currency risk is limited in light of the fact that it typically only periodically holds minor trading balances denominatedinforeigncurrencies;therearenolong-terminvestment,cashorfinancingbalancesthat are denominated in foreign currencies.

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21. COMPANY LIMITED BY GUARANTEEThe company, being limited by guarantee, has no share capital. Every member is liable to contribute a sum not exceeding £1 in the event of the company being wound up whilst still a member or within one year thereafter. The members are not entitled to any distribution of the income or property of the company and, in the unlikely event of the winding up or dissolution of the company, any surplus remaining shall be transferred to some other institution having objectives similar to those of the company.


22. REVALUATION RESERVE

Balancebroughtforward 258,069 550,569

Revaluationoffixedassets – (292,500)

Balancecarriedforward 258,069 258,069

2010 £ 2009£

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23. NOTES TO THE CASH FLOW STATEMENT

RECONCILIATION OF OPERATING SURPLUS TO NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES

Operatingsurplus 181,088 278,276 Depreciation – 3,712 Decreaseinstocks 2,643 1,623 Decrease/(increase)indebtors 256,215 (1,379,106) (Decrease)/increaseincreditors (748,424) 1,316,663 Provisionforservicecostofdefined benefit pension scheme 80,000 151,000 Definedbenefitpensionschemecontributionspaid (143,000) (168,000)

Netcash(outflow)/inflowfromoperatingactivities £(371,478) £204,168

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE

Interestreceived 191 51,413 Interestelementoffinanceleases – (105)

Netcashinflowfromreturnson investmentsandservicingoffinance 191 51,308

TAXATION

Taxation (10,797) (13,783)

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT

Acquisitionoffixedassetinvestments – (1) Disposaloffixedassetinvestments – 10

Netcashinflow for capital expenditureandfinancialinvestment – 9

2010 £ 2009£


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23. NOTES TO THE CASH FLOW STATEMENT (continued)

FINANCING

Capitalelementoffinanceleases – (3,679)

Netcashoutflowfromfinancing – (3,679)

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

(Decrease)/increaseincashintheperiod (382,084) 238,023Cashoutflowinrespectoffinanceleases – 3,679

ChangeinNetFunds (382,084) 241,702

Netfundsat1April 2009 1,200,729 959,027

Netfundsat31March2010 £818,645 £1,200,729

ANALYSIS OF CHANGES IN NET FUNDS

2010 £ 2009£


At1Apr2009£ Cashflows £ At31Mar2010 £

Netcash: Cashinhandandatbank 1,200,729 (382,084) 818,645 Debt:

Netfunds £1,200,729 £(382,084) £818,645

24. POST BALANCE SHEET EVENTSOn8April2010,thecompanysignedaleaseagreementtoletitsformerpremisesat312TadcasterRoad,Yorkforaperiodofsixyears.Theannualrentis£63,000,withthetenantreceivinganinitialfour month rent free period.

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Welcome to YorkshireA company limited by guarantee.RegisteredinEngland&Wales:No.2896762 ChiefExecutive:GaryVerity

Welcome to Yorkshire DrySandFoundry FoundrySquare Holbeck,Leeds LS115DL

T+44(0)1133223500F+44(0)1133223545E [email protected]

www.yorkshire.com

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