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ANNUAL

REPORT
Welcome to Yorkshire Annual Report and Accounts

2011/12
ANNUAL REPORT AND ACCOUNTS 2011/12

It has been an incredible year for


Yorkshire with our Olympic medal
winners shining a light on Yorkshire,
York celebrating its 800th birthday
and the county becoming an official
contender to host the Tour de France,
the biggest annual sporting event
in the world.

Clockwise top left:


Sheffields Jessica Ennis
was the poster girl for
the London 2012 Games.
Cycling in Yorkshire.
York celebrated its 800th
birthday this year.
ANNUAL REPORT AND ACCOUNTS 2011/12

KEY ACTIVITIES

We established a successful new business model Two of Yorkshires oldest sporting festivals, both
following a 100% cut in Government funding. supported by Welcome to Yorkshire promotional
activity, brought in record crowds Ebor Festival and
We worked hard to grow a strong membership base
the Scarborough Cricket Festival attracted a total of
in excess of 4,000 and representing a wide range of
over 113,300 visitors.
tourism businesses across Yorkshire.
We sponsored the David Hockney exhibition at the
PR remained an important tool in promoting Yorkshire
Royal Academy to help promote East Yorkshire
and we successfully provided PR support for hundreds
nationally and internationally.
of tourism businesses, resulting in an AVE (Advertising
Value Equivalent) of just over 19million, which has an We supported 100 Yorkshire festivals - the campaign
EVE (editorial value equivalent) of nearly 60 million. was backed with 100,000 leaflets and www.yorkshire.
com/festivals was visited more than 250,000 times
Our Art in Yorkshire Garden at the Chelsea Flower Show
during the summer months.
showcased the countys artistic and gardens offering,
focussing particularly on Barbara Hepworth to help We used the unique entry of an 82-year-old Yorkshire
promote the opening of The Hepworth Wakefield gallery. Tiger Bus in the London Lord Mayors Parade to
raise the profile of Yorkshire as a holiday destination.
ITVs The Dales hit our TV screens and averaged
More than 3 million people watch BBCs live coverage.
4 million viewers a week, triggering a boost in visitors to
the Dales over the summer months with visitor numbers We took the Yorkshire message to the US with
to attractions up 5%. sponsorship of Alan Aykbourns play Neighbourhood
Watch on Broadway.
The first ever beach was created at the Great Yorkshire
Show and visitors were given a taste of the seaside to
encourage more people to visit the Yorkshire coast.

Clockwise from top


left: Hockney at the
Royal Academy.
The Art in Yorkshire
garden. Aykbourn
in New York. ITVs
The Dales. The first
beach at The Great
Yorkshire Show.
ANNUAL REPORT AND ACCOUNTS 2011/12

KEY MARKETING ACTIVITY


TV campaign Have a Brilliant Yorkshire aired for three
weeks across ITV, Sky and other channels, reaching
24.3% of ABC 1 Adults (6.1 Million people) on average
2.3 times.

Sponsorship of a number of prime time television


programmes - Who Wants To Be A Millionaire, The Paul
OGrady Show, ... Do The Funniest Things in conjunction
with Flamingo Land, and The Royal.

Sponsorship of more than a hundred ticket barriers in


Kings Cross station, a key gateway to Yorkshire.

Themed marketing campaigns were launched, including


the Yorkshire Ale Trail, the Yorkshire Fish and Chip Trail,
the Yorkshire Tea Trail and the Yorkshire Film Trail.

RECOGNISING OUR SUCCESS


Welcome to Yorkshire won the Worlds Leading
Marketing Campaign at the World Travel Awards,
beating off competition from some of the worlds
best travel brands for the third year running.

We won Silver in the CIPR (Chartered Institute of


Public Relations) Awards for Outstanding In-House
Public Relations Team.

Our Art in Yorkshire garden at the Chelsea won


a Silver medal and the BBC Peoples Choice Award.

We also won a Gold Award at the Roses Creative Awards


2012 for Design Strategy and a British Travel Awards
Silver for Best Travel Magazine.

Nominated for 2012 Worlds Leading Tourist Board and


Top: Welcome to Yorkshire
Ebor Festival in York. 2012 Worlds Leading Markeing Campaign at the World
Above: The Yorkshire Travel Awards.
Coast. Left: Mir at the
Yorkshire Sculpture Park
Financial
statements
FOR YEAR ENDED 31 MARCH 2012

COMPANY REGISTRATION NUMBER 2896762


COMPANY REGISTRATION NUMBER 02896762

WELCOME TO YORKSHIRE
FINANCIAL STATEMENTS
FOR
31 MARCH 2012
WELCOME TO YORKSHIRE
FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012

CONTENTS PAGE

Officers and professional advisers 1

The directors' report 2

Independent auditor's report to the members 9

Income and expenditure account 11

Statement of total recognised gains and losses 12

Balance sheet 13

Cash flow statement 14

Notes to the financial statements 15

The following pages do not form part of the financial statements

Detailed income and expenditure account 32

Notes to the detailed income and expenditure account 33


WELCOME TO YORKSHIRE
OFFICERS AND PROFESSIONAL ADVISERS

The board of directors

Chair

C Morrow

Executive Director

G Verity

Non-Executive Directors

G Akbar
Cllr A Barker
Cllr P Box (appointed 08.07.2011)
D Egan (appointed 10.10.2011)
D Lascelles
S Watts (appointed 15.06.2011)

Cllr A Waller (resigned 16.05.2011)


C Brown (resigned 16.05.2011)
M Firth (resigned 23.04.2012)
D Mischendahl (resigned 23.04.2012)

Company secretary G Downes

Registered office Dry Sand Foundry


Foundry Square
Holbeck
Leeds
LS11 5DL

Auditor Barron & Barron


Chartered Accountants
& Statutory Auditor
Bathurst House
86 Micklegate
York
YO1 6LQ

Bankers Barclays
193 High Street
Northallerton
DL7 8LF

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WELCOME TO YORKSHIRE
THE DIRECTORS' REPORT

YEAR ENDED 31 MARCH 2012


The directors have pleasure in presenting their report and the financial statements of the company for the
year ended 31 March 2012.

PRINCIPAL ACTIVITIES AND BUSINESS REVIEW

The principal activity of the company during the year was the promotion of tourism in the Yorkshire and
the Humber region and the provision of support and encouragement for the tourism industry.

Review of the Year

The period under review in this report is from 1st April 2011 to 31st March 2012, the final year of a three
year 30 million Regional Tourism contract with the regional development agency Yorkshire Forward.

Following the governments announcement that the regional development agencies were being
abolished, the final year of the contract was under threat, with Yorkshire Forward requesting a
significant reduction in funding. Following robust renegotiation it was agreed that the final years
funding would be 10 million. This represented a 27% reduction in the overall contract for the final
year of the project, but was nevertheless a considerable ongoing investment in the visitor economy, and
has allowed us to continue to carry out high profile promotional activity for Yorkshire.

Previously agreed funding for major events ceased, as did investment in the Destination Yorkshire
project which had aimed to bring together a number of key partners funded by Yorkshire Forward. The
remaining contract focussed on continued promotion of tourism in Yorkshire and support for the
industry, and included financial support for the delivery of some activities on the ground by Visit York
and Visit Hull and East Yorkshire.

Welcome to Yorkshire continued to manage a contract on behalf of LOCOG for delivery of Yorkshires
2012 activity linked to the Olympics and Paralympics.

During the course of the year The Department for Business, Innovation and Skills (BIS) took over the
monitoring of the Yorkshire Forward contract. We are pleased to report that all aspects of the contract
were successfully delivered, including match funding of 36 million across the three year project
against a target of 30 million.

During the year we have delivered innovative and high profile marketing and media activity promoting
Yorkshire as a tourist destination to the UK and to international visitors.

Our spring TV advertising campaign aired for three weeks across ITV and other channels, reaching
24.3% of ABC 1 Adults (6.1 Million people) on average 2.3 times. We also undertook sponsorship of
122 ticket barriers in Kings Cross station, with distinctive pink branding welcoming visitors to
Yorkshire, as well as poster advertising at the station, which is a key gateway to Yorkshire.

This was followed by a second campaign under the banner Have a Brilliant Yorkshire, which ran until
the end of June across five key ITV regions.

April saw Welcome to Yorkshire sponsorship of the prime time Who Wants To Be A Millionaire

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WELCOME TO YORKSHIRE
THE DIRECTORS' REPORT

YEAR ENDED 31 MARCH 2012


Mothers Day Special which reached an audience of 4 million people, and this was followed by further
TV sponsorship of the Paul OGrady Show, ... Do The Funniest Things in conjunction with
Flamingoland, and The Royal, as well as the Who Wants to be a Millionaire Remembrance Day special.

Our ad campaign was screened in cinemas nationally around the new film, Wuthering Heights, based on
the Bronte novel and shot in Yorkshire. This tied in with the launch of our Bronte trail, which was also
released in the US.

The hugely successful Railway Children production reopened in June for its second year at the
Welcome to Yorkshire theatre at Waterloo station. The show ran until Christmas, continuing to attract
huge audiences, and providing an opportunity to market Yorkshire to an audience of families
predominantly from a key target market of London and the south east.

In April 2011 our Art in Yorkshire garden at the Chelsea Flower Show showcased the countys artistic
offering, focussing particularly on Barbara Hepworth to help promote the opening of the Hepworth
Gallery in Wakefield, and David Hockney to link with his upcoming exhibition at the Royal Academy.
The centrepiece was a Hepworth sculpture, alongside a Hockney IPAD on an easel.

The garden once again won the BBC Peoples Choice Award as well as a Silver Medal. 100,000 copies
of our gardens brochure were distributed both at Chelsea and at other events. The Art in Yorkshire
garden was part of a wider campaign aimed at promoting Yorkshires artistic offering.

In May we launched an audacious bid to bring the opening stages of the Tour de France to Yorkshire and
talks with the organising body, ASO got underway. This bid gained momentum and widespread support
during the year.

In the Spring of 2011 ITVs The Dales hit our TV screens. The 12 part series, which had been
produced through a strong partnership with Welcome to Yorkshire, averaged 4 million viewers a week,
and has been hailed as a success, triggering a boost to businesses in the Dales over the summer months.
Visitor numbers to attractions in the Yorkshire Dales were up 5% over the third quarter 2011 compared
to the previous year and self catering occupancy for the month of September 2011 rose over 11% year
on year.

The successful series was re-commissioned and aired again in the Spring of 2012.

In July the Welcome to Yorkshire yacht set off round the world in the Clipper 2011-12 race, acting as a
trade envoy for the county. Events promoting Yorkshire industry were held in key ports across the
world throughout the year.

The first ever beach, complete with donkeys, was created at the Great Yorkshire Show by Welcome to
Yorkshire. Visitors to Harrogate showground were given a taste of the seaside, to encourage more
people to visit the Yorkshire coast.

In August Yorkshire celebrated a sensational double success after two of its oldest sporting festivals,
both strongly supported by Welcome to Yorkshire promotional activity, brought in record crowds. The
Ebor Festival and the 125th Scarborough Cricket Festival attracted a total of over 113,300 visitors.

The Yorkshire sausage was unveiled on Yorkshire Day, following public tastings at food festivals
across the county, a publicity campaign organised by Welcome to Yorkshire, and a public vote at the

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WELCOME TO YORKSHIRE
THE DIRECTORS' REPORT

YEAR ENDED 31 MARCH 2012


Great Yorkshire Show. The recipe, created by Lishmans of Ilkley, is now being widely used by
butchers and is proving popular with customers.

In September the David Hockney exhibition at the Royal Academy offered a significant opportunity to
promote Yorkshire to a new audience of art lovers. Welcome to Yorkshire sponsored the exhibition and
worked with partners at Visit Hull and East Yorkshire to ensure maximum publicity.

The exhibition which ran from January to April was the RAs most successful ever, with media
coverage for the real star of the show the Yorkshire Wolds - generated by the Welcome to Yorkshire
PR team valued at 3.5m EVE (Editorial Value Equivalent).

More than a thousand people attended the White Rose Awards 2011 at Doncaster Racecourse in
October, for an awards ceremony which celebrates the cream of the countys tourism industry. Winners
on the night went on to represent Yorkshire in the national Enjoy England awards for excellence with
Dovecote Barns in York and The Deep in Hull both being award gold for being the best in the country.

In November Welcome to Yorkshire used the unique entry of the 82 year old Yorkshire Tiger Bus in the
London Lord Mayors Parade to raise the profile of Yorkshire as a holiday destination. Our entry was
referenced in the BBC national coverage of the event by the incumbent Lord Mayor, a Bradfordian, in
his introductory interview.

We took our message to the US in December with the sponsorship of Alan Aykbourns latest play
Neighbourhood Watch on Broadway. BBC Look North followed the journey of the play from
Scarborough to New York and reported on our involvement in helping to make that happen.

Although funding ceased for the development of new major events, we were able to continue to develop
our festivals and events programme, supporting and working closely with more than 100 festivals and
events throughout Yorkshire.

We continued to support some major sporting events, including European Fencing, European Figure
Skating, the British Open Table Tennis Championships World Snooker, World Mountain Biking, FINA
World Diving and World Bouldering.

Our County Events Programme supported a wide range of local festivals and events across the themed
areas of music, theatre, literature, art, sport, food, drink and country shows reaching every corner of
the county.

This meant involvement in well-established events such as the Great Yorkshire Show, Grassington
Festival, York Early Music Festival and Harrogate International Summer Festival but it also meant
support for new and growing events such as Deer Shed Festival at Topcliffe, The Magic Loungeabout at
Broughton Hall, the UK Pro Surf Championship at Scarborough, Cliffhanger at Sheffield and Galtres
Festival at Crayke.

The campaign was backed with 100,000 leaflets and brochures and www.yorkshire.com/festivals which
was visited more than 250,000 times during the summer months.

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THE DIRECTORS' REPORT

YEAR ENDED 31 MARCH 2012


The events offered a fantastic channel to profile the Yorkshire brand and drive traffic to the Welcome to
Yorkshire website through printed programmes, web sites and on-site branding opportunities.

A number of themed marketing campaigns were launched in the year, including the Yorkshire Ale Trail,
the Yorkshire Fish and Chip Trail, the Yorkshire Tea Trail and the Yorkshire Film Trail, as well as
campaigns focussing on Outdoors, Royals, Battlefields, Weddings, and Events and Festivals.

Over the course of the year we have successfully provided PR for a number of our member businesses
and festivals which, added to the existing role of generating media coverage for Welcome to Yorkshire,
resulted in an AVE (Advertising Value Equivalent|) for the 12 month period ending 31 March 2012 of
19.3m AVE or 57.9m EVE.

Over the period of the three year project funded by Yorkshire Forward the PR team generated media
coverage worth 44.3m AVE or 133m EVE for Yorkshire, with many individual tourism businesses
being featured.

We hosted the tourism minister, John Penrose MP, at our annual Y12 conference in March at the
Barbican Centre in York, giving some of the 1000 businesses who attended a direct opportunity to put
questions to him about the governments support for tourism in Yorkshire.

We were delighted that our work was once again recognised at the highest level at the World Travel
Awards where Welcome to Yorkshire won the Worlds Leading Marketing Campaign, beating off
competition from some of the worlds best travel brands for the second year running.

Internally our focus was on building a new business model to ensure the survival of the organisation
from April 2012.

We continued to lobby the government at the highest level to continue to provide funding for a part of
the economy which could deliver growth quickly, but in the absence of any central funding we have
developed our own sources of funding.

During the year we built a strong membership base, reaching 3,000 members by April 2012, and we
worked closely with local authorities to ensure that they recognised the importance of continuing to
work with us as partners in developing the visitor economy. Through our Y30 network we have also
attracted support from the wider business community, who recognise the importance of continuing to
promote the Yorkshire brand.

All three of these are now helping to sustain our funding model. In addition we have developed
self-funding campaigns, and won commissions to provide marketing for some key and valued partners,
and we are working closely with the new local enterprise partnerships, who are now represented on our
Board.

Financial and non-Financial Performance

The company is a Not for Profit organisation, with funding primarily during the year ended 31 March

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WELCOME TO YORKSHIRE
THE DIRECTORS' REPORT

YEAR ENDED 31 MARCH 2012


2012 primarily from grants through contracts with Yorkshire Forward. As a Not for Profit
Organisation, the key performance indicators include achieving a rolling break even income and
expenditure account, positive Net Current Assets and Net Assets in the Balance Sheet and positive cash
flows. Any surplus is re-invested in the aims of the business and is not available for distribution. The
main activities of the company are promoting Yorkshire as a destination for leisure and business
visitors, helping businesses in the tourism sector grow their businesses, and using its many great
attractions and assets, as well as special events and festivals to raise the countys profile as a modern and
confident place to live, work and visit.

The accounts for the current year show a surplus of 641,000 (2011:664,000), following a charge of
119,000 (2011: credit of 290,000) with regards to the defined benefit pension scheme.

It is pleasing to report positive Net Assets at 31 March 2012 of 927,000 (2011: Net Assets 807,000).
This net increase resulted from a profitable trading picture that was reduced by an increased provision
489,000 (2011: 1,092,000 reduction) in the pension deficit.

Pension scheme assets have increased in value by 3% (138,000) (2011: increased by 16% 664,000)
during the year, whilst scheme liabilities have increased by 10% (627,000) (2011: decreased by 6%
428,000).
This increase in liabilities is largely a consequence of falling gilt yields that are applied to value future
liabilities.

Net Current Assets at 31 March 2011 were 2,186,000 (2011: 1,577,000) providing adequate working
capital to support our immediate ongoing needs.

Looking Ahead

Welcome to Yorkshire now has a sustainable business model with positive income projections which
cover salaries and overheads, and adequate reserves. Staff numbers have been reduced as part of this
transition to a new model, with skilled teams remaining in marketing and PR, which are the companys
core activities. A membership team has been established to grow the membership base and provide
practical support to businesses in the tourism sector.

This is the first time since 1972 that the organisation has not received significant public funding to
support Yorkshires visitor economy, and without this the ability to deliver the high profile marketing
and PR activity the sector has enjoyed over the past four years could be compromised. We continue to
press central government for their financial support, to work closely with Visit Britain and Visit
England, and to apply for funding from any relevant bodies. In the meantime we are developing self
financing marketing activities and new partnership relationships which will ensure that we continue to
use every opportunity to continue our award winning promotion of the county and the positive impact
the organisation has had on the Yorkshire brand and economy.

Increased contributions from many local authorities is expected, with some agreeing to buy specific
promotional support for their areas. We are working closely with Visit England and Visit Britain to
maximise opportunities for Yorkshire to benefit from national funding initiatives.

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THE DIRECTORS' REPORT

YEAR ENDED 31 MARCH 2012

Although we expect income for the year to be significantly lower than we have enjoyed from 2009 to
2012 we are confident that we can still deliver a good level of promotional impact, and we will continue
to build on the previous programme of activity to raise Yorkshires profile as a key tourism brand in the
UK.

Every opportunity will be used to harness and co-ordinate any funding available for more local
initiatives, and actively encourage tourism businesses and other organisations to join forces to increase
the impact they can have individually on marketing their own area and business.

A prudent approach will be taken to financial planning, recognising that activity can easily be increased
at relatively short notice if income exceeds expectations. We recognise that this first year of a new
business model will require additional input from our reserves to get it established.

We are continuing to lobby national Government to ensure that tourism in Yorkshire is seen as a key
component of the growth agenda, and one in which significant returns can be generated from relatively
modest investment.

Finally, we are confident that we are building a sustainable business, encouraged by the dedication of
our staff and the strong support we receive from across the county.

RESULTS

The profit for the year, after taxation, amounted to 640,744. The directors have not recommended a
dividend.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Details of the financial risk management objectives and policies of the company are provided in note 19
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
1.

Welcome to Yorkshire is a company limited by guarantee and the directors, as members, derive no
benefit, income or capital interest in the company's financial affairs.

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WELCOME TO YORKSHIRE
THE DIRECTORS' REPORT (continued)

YEAR ENDED 31 MARCH 2012


DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that
law the directors have elected to prepare the financial statements in accordance with United Kingdom
Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).
Under company law the directors must not approve the financial statements unless they are satisfied that
they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the
company for that year.

In preparing those financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume
that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and
explain the 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 comply with the
Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence
for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the directors are aware:

there is no relevant audit information of which the company's auditor is unaware; and

the directors 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.

AUDITOR

Barron & Barron are deemed to be re-appointed under section 487(2) of the Companies Act 2006.

Signed on behalf of the directors

G VERITY

Director

Approved by the directors on 17 September 2012.

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WELCOME TO YORKSHIRE
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WELCOME TO
YORKSHIRE

YEAR ENDED 31 MARCH 2012


We have audited the financial statements of Welcome to Yorkshire for the year ended 31 March 2012.
The financial reporting framework that has been applied in their preparation is applicable law and
United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16
of the Companies Act 2006. Our audit work has been undertaken so 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

As explained more fully in the Directors' Responsibilities Statement set out on page 8, the directors are
responsible for the preparation of the financial statements and for being satisfied that they give a true
and fair view. Our responsibility is to audit and express an opinion on the financial statements in
accordance with applicable law and International Standards on Auditing (UK and Ireland). Those
standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for
Auditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS

An audit involves obtaining evidence about the amounts and disclosures in the financial statements
sufficient to give reasonable assurance that the financial statements are free from material misstatement,
whether caused by fraud or error. This includes an assessment of: whether the accounting policies are
appropriate to the company's circumstances and have been consistently applied and adequately
disclosed; the reasonableness of significant accounting estimates made by executive board; and the
overall presentation of the financial statements. In addition, we read all the financial and non-financial
information in the annual report to identify material inconsistencies with the audited financial
statements. If we become aware of any apparent material misstatements or inconsistencies we consider
the implications for our report.

OPINION ON FINANCIAL STATEMENTS

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 March 2012 and of its surplus
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 requirements of the Companies Act 2006.

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

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WELCOME TO YORKSHIRE
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WELCOME TO
YORKSHIRE (continued)

YEAR ENDED 31 MARCH 2012


MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us
to report to you if, in our opinion:

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

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

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

GUY WARD BA FCA (Senior


Statutory Auditor)
For and on behalf of
BARRON & BARRON
Bathurst House Chartered Accountants
86 Micklegate & Statutory Auditor
York
YO1 6LQ

17 September 2012

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WELCOME TO YORKSHIRE
INCOME AND EXPENDITURE ACCOUNT

YEAR ENDED 31 MARCH 2012


2012 2011
Note
TURNOVER 2 852,633 534,110

Other operating income 3 9,787,077 11,145,380


--------------------------------------------------- ---------------------------------------------------
10,639,710 11,679,490

Staff costs 4 (2,395,822) (2,077,152)


Other operating charges 8 (7,494,787) (8,889,508)
--------------------------------------------------- ---------------------------------------------------
OPERATING SURPLUS 6 749,101 712,830

Income from fixed asset investments 9 27,820 112,924


Interest receivable 4,071 1,221
Interest payable and similar charges 10,16 (39,000) (122,000)
------------------------------------ ------------------------------------
SURPLUS ON ORDINARY ACTIVITIES BEFORE
TAXATION 741,992 704,975

Tax on surplus on ordinary activities 11 (101,248) (40,865)


----------------------------------------- -----------------------------------------
SURPLUS ON ORDINARY ACTIVITIES AFTER
TAXATION, BEING RETAINED SURPLUS FOR
THE FINANCIAL YEAR 640,744 664,110

Balance brought forward 548,580 (817,530)


Actuarial gain/(loss) in respect of defined benefit pension
scheme (520,000) 702,000
----------------------------------------- -----------------------------------------
Balance carried forward 669,324 548,580
========================================= =========================================

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

The notes on pages 15 to 30 form part of these financial statements.

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WELCOME TO YORKSHIRE
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

YEAR ENDED 31 MARCH 2012


2012 2011

Surplus for the financial year
attributable to the members 640,744 664,110
Actuarial gain/(loss) in respect of defined benefit pension
scheme (520,000) 702,000
----------------------------------------- ---------------------------------------------------
Total gains and losses recognised since the last annual
report 120,744 1,366,110
========================================= ===================================================

The notes on pages 15 to 30 form part of these financial statements.

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WELCOME TO YORKSHIRE
BALANCE SHEET

31 MARCH 2012
2012 2011
Note
FIXED ASSETS
Tangible assets 12 800,000 800,000
Investments 13 101 101
------------------------------------ ------------------------------------
800,101 800,101
CURRENT ASSETS
Debtors 14 1,630,116 1,841,731
Cash at bank 1,344,025 690,304
---------------------------------------------- ----------------------------------------------
2,974,141 2,532,035
CREDITORS: Amounts falling due
within one year 15 (787,849) (955,487)
---------------------------------------------- ----------------------------------------------
NET CURRENT ASSETS 2,186,292 1,576,548
---------------------------------------------- ----------------------------------------------
TOTAL ASSETS LESS CURRENT LIABILITIES 2,986,393 2,376,649
--------------------------------------------------- ---------------------------------------------------
NET ASSETS EXCLUDING PENSION
LIABILITY 2,986,393 2,376,649
Defined benefit pension scheme
liability 16 (2,059,000) (1,570,000)
--------------------------------------------------- ---------------------------------------------------
NET ASSETS INCLUDING PENSION
LIABILITY 927,393 806,649
=================================================== ===================================================

RESERVES 20
Revaluation reserve 258,069 258,069
Income and expenditure account 669,324 548,580
----------------------------------------- -----------------------------------------
MEMBERS' FUNDS 927,393 806,649
========================================= =========================================

These financial statements were approved by the directors and authorised for issue on 17 September
2012 and are signed on their behalf by:

G VERITY
Executive Director

Company Registration Number: 02896762

The notes on pages 15 to 30 form part of these financial statements.

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WELCOME TO YORKSHIRE
CASH FLOW STATEMENT

YEAR ENDED 31 MARCH 2012


2012 2011
Note
NET CASH INFLOW/(OUTFLOW)
FROM OPERATING ACTIVITIES 21 661,296 (242,446)

RETURNS ON INVESTMENTS
AND SERVICING OF FINANCE 21 31,891 114,145

TAXATION 21 (39,466) (40)


----------------------------------------- ---------------------------------------------------
INCREASE/(DECREASE) IN
CASH 21 653,721 (128,341)
========================================= ===================================================

The notes on pages 15 to 30 form part of these financial statements.

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WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


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.

As detailed in note 13 to the financial statements, the company owns all of the issued share capital
of two unquoted companies registered in England and Wales, being Yorkshire.com Limited and
Yorkshire Tourist Board Limited.

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

The company has not prepared group accounts for the year ended 31 March 2012 as it considers
that it is exempt by virtue of s402 of the Companies Act 2006.

This section states that a parent company is exempt from the requirement to prepare group
accounts if under s405 of the Companies Act 2006 all of its subsidiary undertakings could be
excluded from consolidation.

s405 of the Companies Act 2006 states that a subsidiary undertaking 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.

- 15 -
WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


1. ACCOUNTING POLICIES (continued)

Turnover

Turnover represents:

The amounts derived from the ordinary marketing activities of the company and is stated after
the deduction of value added tax, and

Membership income comprises the amount receivable by the company from members such as
accommodation providers and visitor attractions.

Other Operating Income:

Other operating income comprises various items, including income from Local Authorities and
grants. The following points should be specifically noted:

Local Authority income comprises the amount receivable by the company from the various
Local Authority members in respect of the relevant financial year;

Yorkshire Forward grant income comprises the amounts receivable under various funding
agreements in respect of each financial year. Grant claims are submitted to Yorkshire Forward
in arrears, with income being recognised in the financial statements at the same time as the
eligible expenditure.

Welcome to Yorkshire processes and submits to Yorkshire Forward grant funding claims in
respect of the Local Area Offices. This arrangement is in effect an agency agreement; the income is
considered to be that of the Local Area Offices rather than Welcome to Yorkshire, which merely
oversees the claim process and has no entitlement to the income. As such, no income or
expenditure is recognised in these financial statements in respect of amounts processed on behalf
of and passed onto other Local Area Offices (see note 5).

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 (has a useful economic life of more than one year).

On occasion, 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 by
the company from the item (on disposal or otherwise) results in an offsetting reduction in grant
funding, then such items are not considered to provide benefits to the company for more than one
year.

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WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


1. ACCOUNTING POLICIES (continued)

Investment properties

Investment properties are shown at their open market value in accordance with SSAP 19
Accounting for Investment Properties. Changes in the market value of such properties arising from
the annual revaluation are transferred to an investment revaluation reserve except where a deficit,
or its reversal, on an individual investment property is expected to be permanent, in which case it is
recognised in the income and expenditure account for the year.

No depreciation is provided on investment properties, which is a departure from the requirements


of the Companies Act 2006. In the opinion of the directors these properties are held primarily for
their investment potential and so their current value is of more significance than any measure of
consumption, and to depreciate them would not give a true and fair view. The provisions of SSAP
19 have therefore been adopted in order to give a true and fair view.

If this departure from the Act had not been made, the surplus for the year would have been reduced
by depreciation. However, the amount of depreciation cannot reasonably be quantified and the
amount which might otherwise have been shown cannot be separately identified or quantified.

Investments

Investments in unquoted subsidiary companies and other investments are stated at cost less
amounts written off.

Operating lease agreements

Rentals applicable to operating leases where substantially all 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.

- 17 -
WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


1. ACCOUNTING POLICIES (continued)

Pension costs and other post-retirement benefits

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.

Current service costs, past service costs and gains and losses on settlements and curtailments are
charged to the income and expenditure account. Past service costs are recognised over the vesting
period or immediately if the benefits have vested. When a settlement (eliminating all obligations
for benefits already accrued) or a curtailment (reducing future obligations as a result of a material
reduction in the scheme membership or a reduction in future entitlement) occurs, the obligation
and related plan assets are re-measured using current actuarial assumptions and the resultant gain
or loss is recognised in the profit and loss 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.

Pension scheme assets are valued at fair value at the balance sheet date. Fair value is based on
market price information and in the case of quoted securities is the published bid price. Pension
scheme liabilities are measured 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 to the scheme liabilities. Pension scheme
surpluses (to the extent that they can be recovered) and deficits are recognised in full on the
balance sheet.

2. TURNOVER

The turnover derives from the company's commercial activities associated with the promotion of
tourism throughout the county of Yorkshire and the North of England as follows:-

2012 2011

Marketing 435,389 465,688
Membership income 417,244 68,422
----------------------------------------- -----------------------------------------
852,633 534,110
========================================= =========================================

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WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


3. OTHER OPERATING INCOME

2012 2011

Rent receivable 63,000 40,821
Local Authority income 296,449 292,453
Yorkshire Forward grant income 9,341,555 10,540,955
Other operating income 86,073 271,151
---------------------------------------------- ---------------------------------------------------
9,787,077 11,145,380
============================================== ===================================================

4. PARTICULARS OF EMPLOYEES

The average number of staff employed by the company during the financial year amounted to:

2012 2011
No No
Welcome to Yorkshire 50 54
=============== ===============

The aggregate payroll costs of the above were:

2012 2011

Wages and salaries 2,147,386 2,242,754
Social security costs 193,778 188,360
Other pension costs 54,658 (353,962)
---------------------------------------------- ----------------------------------------------
2,395,822 2,077,152
============================================== ==============================================

Other pension costs are amounts charged to operating profit and do not include amounts charged to
finance costs (see note 10) and amounts recognised in the statement of recognised gains and losses.

Other pension costs are shown after local government pension scheme adjustments to the actual
payments made for current service costs of 70,000 decrease (2011 - 1,000 increase) and past
service costs of nil (2011 - 513,000 decrease).

5. AGENCY TRANSACTIONS

Welcome to Yorkshire processed and submitted to Yorkshire Forward grant funding claims in
respect of the Local Area Offices in the amount of 652,119 in relation to the financial year to 31
March 2012 (2011: 1,803,443). Welcome to Yorkshire acted as an agent in these transactions and
they are therefore excluded from the accounts.

It should be noted that funding in respect of 70,250 of these claims was claimed from and
received from Yorkshire Forward after the balance sheet date (2011: 200,557). 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 subsequently passed
onto other Local Area Offices, then no offsetting debtor and creditor has been included at the year
end.

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WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


6. OPERATING SURPLUS

Operating surplus is stated after charging:

2012 2011

Auditor's remuneration
- as auditor 11,500 11,000
Auditor's remuneration - for other services 5,990 3,875
Operating lease costs:
- Other 117,776 107,438
==================================== ===============================

7. DIRECTORS' REMUNERATION

The directors' aggregate remuneration in respect of qualifying services were:

2012 2011

Remuneration receivable 249,881 243,928
Value of company pension contributions to money
purchase schemes 25,300 24,381
------------------------------------ ------------------------------------
275,181 268,309
==================================== ====================================

Remuneration of highest paid director:


2012 2011

Total remuneration (excluding pension contributions) 179,881 188,511
Value of company pension contributions to money
purchase schemes 22,500 22,500
------------------------------------ ------------------------------------
202,381 211,011
==================================== ====================================

The number of directors who accrued benefits under company pension schemes was as follows:

2012 2011
No No
Money purchase schemes 2 2
=============== ===============

8. OTHER OPERATING CHARGES


2012 2011

Marketing 8,975,310 9,888,522
Miscellaneous 915,299 1,078,138
---------------------------------------------- ---------------------------------------------------
9,890,609 10,966,660
Less: Staff costs (note 4) (2,395,822) (2,077,152)
--------------------------------------------------- ---------------------------------------------------
7,494,787 8,889,508
=================================================== ===================================================

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WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


9. INCOME FROM FIXED ASSET INVESTMENTS

2012 2011

Income from other investments 27,820 112,924
=============================== ====================================

10. INTEREST PAYABLE AND SIMILAR CHARGES

2012 2011

Other similar charges payable 39,000 122,000
=============================== ====================================

Other finance costs represent the difference between the interest payable on the liabilities of the
defined benefit scheme and the expected return on the scheme assets (further details are set out in
note 16).

11. TAXATION ON ORDINARY ACTIVITIES

(a) Analysis of charge in the year

2012 2011

Current tax:

UK Corporation tax based on the results for the year


at 26% (2011 - 21%) 102,647 40,865
Over/under provision in prior year (1,399) -
------------------------------------ -------------------------------
Total current tax 101,248 40,865
==================================== ===============================

Corporation tax is chargeable on taxable interest received, as well as on any 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 standard rate of
corporation tax in the UK of 26% (2011 - 21%).

2012 2011

Surplus on ordinary activities before taxation 741,992 704,975
==================================== ====================================

Surplus on ordinary activities by rate of tax 192,918 148,045


Non taxable trading (74,597) (107,180)
(Over)/under provision in prior year (1,399) -
Marginal relief (15,674) -
------------------------------------ ------------------------------------
Total current tax (note 11(a)) 101,248 40,865
==================================== ====================================

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WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


12. TANGIBLE FIXED ASSETS

Investment Property

COST OR VALUATION
At 1 April 2011 and 31 March 2012 800,000
====================================

DEPRECIATION
At 1 April 2011 and 31 March 2012
------------------------------------

NET BOOK VALUE


At 31 March 2012 800,000
====================================
At 31 March 2011 800,000
====================================

The property held by the company was previously used as the company's offices. From April 2010
the property has been leased to an independent third party on normal commercial terms. In light of
this change in the status of the property, it has been transferred from freehold land and buildings to
investment property.

The investment property was valued by the directors on 31 March 2012 at 800,000 on the basis of
open market value.

The historic cost of the property is 559,850. If the property had been sold at the carrying value in
the accounts a tax charge of approximately nil would have resulted (2011: 1,000).

13. INVESTMENTS

Unquoted
Companies Other Total

COST
At 1 April 2011 50,151 - 50,151
Additions - 100,000 100,000
Disposals - (100,000) (100,000)
------------------------------- ------------------------------------ ------------------------------------
At 31 March 2012 50,151 - 50,151
=============================== ==================================== ====================================

AMOUNTS WRITTEN OFF


At 1 April 2011 and 31 March 2012 50,050 - 50,050
=============================== =============== ===============================

NET BOOK VALUE


At 31 March 2012 101 - 101
=============================== =============== ===============================
At 31 March 2011 101 - 101
=============================== =============== ===============================

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WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


13. INVESTMENTS (continued)

Investments in private companies comprises 100% of the issued share capital of the companies
listed below, both of which are registered in England and Wales, and were dormant throughout
2012 and 2011.

Aggregate capital and reserves

Yorkshire.com Limited 100 100


Yorkshire Tourist Board Limited 1 1

Profit and (loss) for the year

Yorkshire.com Limited
Yorkshire Tourist Board Limited

Other investments related to a capital contribution made towards a theatre production. The capital
contribution was repaid in full during the financial year, and the income derived from the
investment is included in note 9 as income from fixed asset investments.

Under the provisions of s402 of the Companies Act 2006 the company is exempt from preparing
consolidated accounts and has not done so; the accounts therefore show information about the
company as an individual entity.

14. DEBTORS

2012 2011

Trade debtors 272,179 76,326
VAT recoverable 931
Yorkshire Forward 997,339 1,253,070
Other debtors 15,020 7,646
Prepayments and accrued income 344,647 504,689
---------------------------------------------- ----------------------------------------------
1,630,116 1,841,731
============================================== ==============================================

15. CREDITORS: Amounts falling due within one year

2012 2011

Trade creditors 40,071 548,573
Corporation tax 102,647 40,865
PAYE and social security 71,374 64,980
VAT 18,814
Other creditors 154,963 209,141
Accruals and deferred income 418,794 73,114
------------------------------------ ------------------------------------
787,849 955,487
==================================== ====================================

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WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


16. PENSIONS AND OTHER POST RETIREMENT BENEFITS

Defined contribution
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 31 March
2012 were 60,980 (2011: 48,090); the contributions outstanding at the year end and included in
other creditors were 6,152 (2011: 6,024).

Defined Benefit
The company also participates in the Local Government Pension Scheme, administered by North
Yorkshire County Council. The Local Government Pension Scheme is a defined benefit scheme
based on final pensionable salary.

It should be noted that Welcome to Yorkshire stopped admitting new members to the defined
benefit scheme in 2010.

The actuarial information for the defined benefit pension scheme indicates that there was a deficit
in the pension fund at 31 March 2012 of 2,059,000 (deficit 1,570,000 in 2011).

This is being addressed by increased contributions, which - following the completion of the
triennial valuation as at 31 March 2010 - have been set for the three years commencing 1 April
2011.

The amounts recognised in the profit and loss account are as follows:
2012 2011

Amounts credited /(charged) to operating profit:
Current service cost (80,000) (101,000)
Past service cost 513,000
------------------------------- ------------------------------------
Total operating credit /(charge) (80,000) 412,000
=============================== ====================================

Amounts included in other finance cost:


Expected return on scheme assets 312,000 268,000
Interest on scheme liabilities (351,000) (390,000)
------------------------------------ ------------------------------------
Other finance cost (39,000) (122,000)
==================================== ====================================
Total credit /(charge) to the profit and loss account (119,000) 290,000
==================================== ====================================
Actual return on scheme assets 73,000 331,000
==================================== ====================================

The total operating credit/(charge) is recognised in the following line items in the profit and loss
account:
2012 2011

Staff costs (80,000) 412,000
==================================== ====================================

- 24 -
WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


16. PENSIONS AND OTHER POST RETIREMENT BENEFITS (continued)

Other finance cost is included in the profit and loss account within interest payable and similar
charges.
Actuarial losses of (520,000) (2011: 702,000) have been recognised in the statement of total
recognised gains and losses. At 31 March 2012 the cumulative amount of actuarial losses
recognised in the statement of total recognised gains and losses is (1,143,000).

The amounts recognised in the balance sheet are as follows:


2012 2011

Present value of funded obligations (7,010,000) (6,383,000)
Fair value of scheme assets 4,951,000 4,813,000
---------------------------------------------- ----------------------------------------------
Net pension liability (2,059,000) (1,570,000)
============================================== ==============================================

Changes in the present value of the defined benefit obligation scheme are as follows:
2012 2011

Opening defined benefit obligation (6,383,000) (6,811,000)
Current service cost (80,000) (101,000)
Past service cost 513,000
Interest on scheme liabilities (351,000) (390,000)
Actuarial (loss)/gain (281,000) 355,000
Contributions by scheme participants (65,000) (58,000)
Benefits paid 150,000 109,000
---------------------------------------------- ----------------------------------------------
Closing defined benefit obligation (7,010,000) (6,383,000)
============================================== ==============================================

Changes in the fair value of scheme assets are as follows:


2012 2011

Opening fair value of scheme assets 4,813,000 4,149,000
Expected return on scheme assets 312,000 268,000
Contributions by employer 150,000 100,000
Contributions by scheme participants 65,000 58,000
Actuarial (loss)/gain (239,000) 347,000
Benefits paid (150,000) (109,000)
---------------------------------------------- ----------------------------------------------
Closing fair value of scheme assets 4,951,000 4,813,000
============================================== ==============================================

The fair value of the major categories of scheme assets are as follows:
2012 2011

European equities 3,505,000 3,596,000
European bonds 1,406,000 1,193,000
Cash 40,000 24,000
---------------------------------------------- ----------------------------------------------
Fair value of scheme assets 4,951,000 4,813,000
============================================== ==============================================

- 25 -
WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


16. PENSIONS AND OTHER POST RETIREMENT BENEFITS (continued)

The principal actuarial assumptions as at the balance sheet date were:


2012 2011
% %
Discount rate 4.90 5.50
Rate of increase in salaries 4.25 4.65
Rate of increase in pensions in payment 2.50 2.90
Inflation 2.50 2.90

Amounts for the current and previous four periods are as follows:
2012 2011 2010 2009 2008

Defined benefit
obligation (7,010,000) (6,383,000) (6,811,000) (4,385,000) (5,320,000)
Fair value of scheme
assets 4,951,000 4,813,000 4,149,000 2,496,000 3,785,000
---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Deficit in the scheme (2,059,000) (1,570,000) (2,662,000) (1,889,000) (1,535,000)
============================================== ============================================== ============================================== ============================================== ==============================================
Experience
adjustments on scheme
liabilities 297,000 309,000
=============== ==================================== =============== =============== ====================================
Experience
adjustments on scheme
assets (239,000) 347,000 1,241,000 (1,611,000) (514,000)
==================================== ==================================== ============================================== ============================================== ====================================

17. COMMITMENTS UNDER OPERATING LEASES

At 31 March 2012 the company had annual commitments under non-cancellable operating leases
as set out below.

2012 2011
Land and Other Land and Other
buildings Items buildings Items

Operating leases which expire:
Within 1 year - 444 - -
Within 2 to 5 years 10,000 - 10,000 -
After more than 5 years - - 97,438 -
------------------------------- --------------- ------------------------------------ ---------------
10,000 444 107,438 -
=============================== =============== ==================================== ===============

- 26 -
WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


18. RELATED PARTY TRANSACTIONS

Yorkshire Forward, which was the main funding body of Welcome to Yorkshire for the financial
year to 31 March 2012, had two directors on the board of the company for part of the year.

In respect of transactions under the Yorkshire Forward contracts, the income receivable by the
company for the year was 9,341,555 (2011: 10,540,955) and the net balance due to the company
at the year end was 997,339 (2011: 1,253,070).

It is considered that any transactions entered into by the company with its non-executive directors
and entities in which non-executive directors are interested are immaterial. Any such transactions
are carried out on an arms length basis and at normal commercial rates.

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

- 27 -
WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


19. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company holds or issues financial instruments in order to achieve three main objectives,
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) arise directly from the company's operations.

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

The company monitors liquidity risks arising from cashflow and cash management on an ongoing
basis, through mechanisms including the preparation of budgets and cashflow forecasts.

It may be noted that as at 31 March 2012 none of the company's cash reserves are held in fixed 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 denominated in
foreign currencies; there are no long-term investment, cash or financing balances that are
denominated in foreign currencies.

20. COMPANY LIMITED BY GUARANTEE

The 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.

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WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


21. NOTES TO THE CASH FLOW STATEMENT

RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM


OPERATING ACTIVITIES

2012 2011

Operating surplus 749,101 712,830
Decrease in stocks 16,424
Decrease in debtors 211,615 58,452
Decrease in creditors (229,420) (518,152)
Provision for service cost of defined benefit pension
scheme 80,000 (412,000)
Defined benefit pension scheme contributions paid (150,000) (100,000)
----------------------------------------- ---------------------------------------------------
Net cash inflow/(outflow) from operating activities 661,296 (242,446)
========================================= ===================================================

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE

2012 2011

Income from other fixed asset investments 27,820 112,924
Interest received 4,071 1,221
------------------------------- ------------------------------------
Net cash inflow from returns on investments and
servicing of finance 31,891 114,145
=============================== ====================================

TAXATION

2012 2011

Taxation (39,466) (40)
=============================== ===============

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

2012 2011

Increase/(Decrease) in cash in the period 653,721 (128,341)
------------------------------------ ------------------------------------
Movement in net funds in the period 653,721 (128,341)
==================================== ====================================
Net funds at 1 April 2011 690,304 818,645
--------------------------------------------------- -----------------------------------------
Net funds at 31 March 2012 1,344,025 690,304
=================================================== =========================================

- 29 -
WELCOME TO YORKSHIRE
NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2012


21. NOTES TO THE CASH FLOW STATEMENT (continued)

ANALYSIS OF CHANGES IN NET FUNDS


At At
1 Apr 2011 Cash flows 31 Mar 2012

Net cash:
Cash in hand and at bank 690,304 653,721 1,344,025
----------------------------------------- ----------------------------------------- ---------------------------------------------------
Net funds 690,304 653,721 1,344,025
========================================= ========================================= ===================================================

- 30 -
WELCOME TO YORKSHIRE
MANAGEMENT INFORMATION

YEAR ENDED 31 MARCH 2012

The following pages do not form part of the statutory financial statements
which are the subject of the independent auditor's report on pages 9 to 10.

- 31 -
WELCOME TO YORKSHIRE
DETAILED INCOME AND EXPENDITURE ACCOUNT

YEAR ENDED 31 MARCH 2012


2012 2011

TURNOVER 852,633 534,110

Other operating income 9,787,077 11,145,380


--------------------------------------------------- ---------------------------------------------------
10,639,710 11,679,490
OPERATING COSTS
Staff costs (2,395,822) (2,077,152)
Other operating charges (7,494,787) (8,889,508)
---------------------------------------------- ---------------------------------------------------
(9,890,609) (10,966,660)
--------------------------------------------------- ---------------------------------------------------
OPERATING SURPLUS 749,101 712,830
Income from other investments 27,820 112,924
Bank interest receivable 4,071 1,221
------------------------------------ ------------------------------------
780,992 826,975

Net finance costs in respect of defined benefit pension


schemes (39,000) (122,000)
----------------------------------------- -----------------------------------------
PROFIT ON ORDINARY ACTIVITIES 741,992 704,975
========================================= =========================================

- 32 -
WELCOME TO YORKSHIRE
NOTES TO THE DETAILED INCOME AND EXPENDITURE ACCOUNT

YEAR ENDED 31 MARCH 2012


2012 2011

STAFF COSTS
Administration staff:
Wages and salaries (2,147,386) (2,242,754)
Employers national insurance contributions (193,778) (188,360)
Staff pension contributions (54,658) 353,962
---------------------------------------------- ----------------------------------------------
(2,395,822) (2,077,152)
============================================== ==============================================

OTHER OPERATING CHARGES


General expenses:
Marketing (8,975,310) (9,888,522)
Miscellaneous (797,523) (980,700)
Staff costs 2,395,822 2,077,152
---------------------------------------------- ----------------------------------------------
(7,377,011) (8,792,070)
Financial costs:
Operating lease: Property (117,776) (97,438)
---------------------------------------------- ----------------------------------------------
(7,494,787) (8,889,508)
============================================== ==============================================

- 33 -