2012 annual accounts - ipm
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Company Registration No. 00975635 (England and Wales)
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2012
FSPGCHARTERED ACCOUNTANTS
21 BEDFORD SQUARE
LONDON
WC1B 3HH
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)COMPANY INFORMATION
Directors Laura Appleby
Stephen Bentley (Appointed 1 January 2012)
Samuel Blunt
Jordi Connor
Paul Dwan (Appointed 1 January 2012)
Peter Kerr
Ian Moore
Alexander Meisl (Appointed 1 January 2013)
Rebecca Munday
Kimberley Ann Robinson (Appointed 1 January 2013)
Marcus Sandwith (Appointed 1 January 2013)
Bob Suppiah
John Sylvester
Matthew Tabb (Appointed 1 January 2012)
Graham Temple
Nicola Thompson
Secretary HS (Nominees) Limited
Company number 00975635
Registered office 70 Margaret Street
London
W1W 8SS
Auditors FSPG
21 Bedford Square
London
WC1B 3HH
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)COMPANY INFORMATION
Fellows of The Institute
Ian Allchild Tim Arnold Keith Bantick
Tony Barnes Chris Bestley Andrew Brown
Stephen Callender Colin Chamberlain Philip Circus
Jon Cooper Alan Crossman Iain Ferguson
Peter Franklin Ian Fryer John Fuller
Leys Geddes John Greenway Graham Griffiths
Colin Hall Jack Heath John Hooper CBE
Roger Hyslop Mike Johnson Graham Kemp
Peter Kerr Peter le Conte Faith Legh
Colin Lloyd Stuart MacMillan Pratt Simon Mahoney
Andrew Marsden Tim Mason Richard Millett
Clive Mishon Alistair Mitchell Becky Munday
Vanita Pandey Guy Parker Roy Piercy
James C Porteous MBE Jeremy Sandys-Winsch Gordon Savage
Brian Seymour Robert Simmons Brenda Simonetti
Mike Slipper Ken Spedding Randle Stonier
Graham Temple Alan Toop Philip Town
Kevin Twittey Ken Vaughan Aubrey Watson
Nick Wells John Williams Alan Wolfe
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)CONTENTS
Page
Directors' report 1 - 8
Independent auditors' report 9 - 10
Profit and loss account 11
Balance sheet 12
Notes to the financial statements 13 - 17
Detailed Trading and Profit and Loss account 18
Schedule of Administrative expenses 19
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 1 -
The directors present their report and financial statements for the year ended 30 September 2012.
Principal activities
The principal activity of the company continued to be that of the advancement of sales promotion.
Review of business for the year
During 2012, the IPM continued to broaden its member base and adopt a more assertive stance within the promotional marketing landscape. We are proudly dedicated to upholding the highest standards of professionalism in the promotional marketing industry, representing the interests of client companies that use promotional marketing techniques and the agencies and suppliers that support them.
The current economic conditions remain challenging, although the recent significant increase in IPM Awards entries points to an industry that rises to any challenge! This is a true testimony to the sector, and reinforces the IPM's new theme of 'Made in the UK' and how proud we are of our members output.
Such output no longer focuses just on tactical sales-driving promotions - the IPM now champions marketing which leads to behaviour change at a more strategic level.Under the leadership of Chairman Becky Munday, Vice-Chairman Graham Temple, and Chief Executive Officer Annie Swift, the IPM is committed to championing the effectiveness of promotional marketing amongst the wider marketing community and beyond.
We will continue to invest in our research function. This was launched over three years ago and has already delivered solid evidence for the real value and effectiveness of creative promotional marketing. With evidence comes belief, and with belief should come increased investment in a plethora of promotional marketing activities across all industries and all media channels.
Of course, promotions still have to tick all the right boxes: and compliance, particularly in the digital arena, must be a priority for all those involved in the creation and execution of promotions, whichever media channels are used.
Promotions that are run professionally and effectively will continue to strike the right chord with their target audiences. Promotions that are run ineffectively and with scant regard for consumer-protecting rules can damage a brand's reputation and that of the agencies and suppliers behind them.
The IPM continues to play a major role in ensuring that promotions are legal and follow the CAP Code and best practice. We do this through our well-established Legal Advisory Service (headed up by barrister Philip Circus, one of the UK's leading marketing law experts) and through our Compliance function (headed up by Edwin Mutton, who also represents the IPM on the Committee of Advertising Practice).
Our LAS has been working particularly hard over the past six months to respond to the explosive growth in online social media sites and how they are affecting the promotional landscape. The team worked with Facebook, the ASA and CAP and has now published A Guide to Running Promotions on Facebook. This was launched at the IPM's Social Marketing Conference in February, attended by 100 industry players. The IPM is now in talks with Twitter over its promotional rules.
We also continue to play a very active role in the UK's self-regulatory system governing advertising and marketing. As already mentioned, Edwin Mutton sits on the CAP Committee, which draws up the CAP Code; and Philip Circus chairs CAP's Sales Promotion and Direct Response Panel.
Following on from the extension of the ASA's digital remit in March 2011, the IPM published the Experiential Marketing Code of Conduct. Experiential has grown explosively over the last decade, but many of the techniques used were not covered by the CAP Code. With many promoters these days incorporating experiential in to their campaigns, it was vital that the same levels of consumer protection applied to experiential as already exist in more traditional marketing channels.
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 2 -
Our world-leading education programme continues to ensure that promotions are well executed, comply with the law and the CAP Code and adhere to the highest standards.
The IPM Diploma is now in its 31st year, and 2013 sees the launch of the International Diploma developed by the IPM alongside EACA.
The Diploma in Motivation, the Certificate in Promotional Marketing and the Certificate in Experiential Marketing all continue to thrive and we have also expanded our range of one day courses with new courses covering the measurement of experiential, digital compliance and running promotions on mobile.
Despite the economic conditions, 2013 has seen entries to the IPM Awards rise by a staggering 15%. This should make for a record breaking attendance at the Gala Dinner in June and hopefully a suitcase full of Awards the European IMC Awards and the worldwide MAAW Globes.
The IPM is more proactive on the communications front, led by Head of Communications Martin Croft, and is keen to explore digital as well as more traditional ways to engage with members. IPM representatives have appeared on BBC TV and radio, plus commercial radio, and the IPM has been quoted in UK national newspapers, magazines and online news sites.
Much of this coverage has been generated by incisive research, but some of it has been in response to national news stories on issues such as money-off coupon misuse, the administration of competitions and money-saving strategies during the recession.
Our ongoing research into the margin-damaging effects of continuous price discounting and the brand-building alternatives offered by various forms of value-added promotional marketing continues to be widely reported in The Grocer and in the marketing press.
The IPM's conference and seminar programme is growing in stature and reach. As mentioned earlier, 100 people turned up to our Social Media Conference in February and the same numbers look likely for the Mobile Conference in April. More conferences are planned for the second half of 2013, including the annual fast.MAP Marketing-GAP Study, which explores how little marketers understand about what incentives actually motivate consumers.
Promomarketing.info, editing by Martin Croft, continues to deliver news round-ups every other day and regular features and comment, and visitors can now add their own comments and engage in discussions on important issues.
The Cogs, the annual award scheme which honours the crucial role played by suppliers and service partners in the success of promotions, goes from strength to strength. In 2012, over 1500 people cast over 5000 votes and the Awards lunch enjoyed the biggest turn-out ever. This year's event takes place on September 20th at the unique venue Vinopolis.
The IPM has also named breast cancer charity CoppaFeel! as its first ever official charity, and will be running a range of awareness and fundraising activities across 2013.
Your IPM continues to transform itself to ensure that it remains relevant and responsive to the needs of the industry. The following activities and initiatives will give you an outline of where we have got to and where we intend to go on your behalf in the future.
UK Issues
The subjects of promoting to children and alcohol promotions continue to be high on the agenda. They have now been joined by increasing concerns over data collection and use by marketers, particularly for behavioural targeting and by social media sites.
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 3 -
The Coalition Government continues to prioritise the welfare of children and the protection of childhood. The UK advertising and marketing industry is working hard to respond to the recommendations of the Bailey Report, published in 2011, which explored the commercialisation and sexualisation of children.
The IPM is, as always, working closely with the Advertising Association to provide evidence defending promotional marketing against the criticisms being levelled at it. The IPM has also been fully supportive of the Advertising Association's 'CHECK' initiative, which provides information on best practice marketing to children.
The new Experiential Marketing Code of Conduct includes much content intended to further protect children, and the Advertising Association has directly cited the IPM's work in this area in its presentation to the Prime Minister, David Cameron, outlining the marketing industry's response to the Bailey Report.
Alcohol promotion is still under scrutiny. Pressure mounts on the marketing of alcohol in England and Wales and the UK Government plans to introduce minimum pricing on alcohol and has also said it will start a consultation process on further restrictions on irresponsible alcohol promotions, which the IPM will obviously monitor on behalf of members and respond to as necessary.
The IPM, alongside the Advertising Association, will adopt a more aggressive stance on the industry's behalf to fight an outright ban on alcohol-related promotions.
The IPM is closely monitoring promotional marketing in the digital space following the extension of the ASA's remit back in March 2011, giving it the power to apply the code to companies' own websites. The IPM believes that digital media is the 'media of choice' for promotions so this is an area of great interest to us, particularly when it comes to social media and mobile marketing.
Europe
The EU Directive on Unfair Commercial Practices.
We have had three decisions from the European Court of Justice that have made it clear that only those practices that are specifically banned by the UCP can be forbidden by EU national governments. Any national laws banning promotional marketing practices that are not listed as banned under the UCP are not valid.
It may take some time for the impact of these decisions to work its way through EU member states. Furthermore, some member states have indicated a desire to change the UCP to allow them to continue to ban a range of promotional techniques.
It is possible that some EU countries may continue to try to apply national laws restricting promotional marketing. If so, then it is likely that the relevant cases would be referred to the European Court of Justice. We will continue to monitor the situation and keep members informed.
Further advice on running promotions, whether in Northern Ireland and the rest of the UK, or in relation to other European countries, or indeed anywhere in the world, is available from the IPM's Legal Advisory Service.
The IPM continues to lobby in Brussels, at Westminster and through its direct links with the Department for Business, Innovation and Skills (BIS) and the AA. We are also members of the Integrated Marketing Communications Council (IMCC) of the European Association of Communications Agencies (EACA) and, in September 2012, Fiona Moore, managing director of IPM member agency Blue-Chip Marketing, became chair of the IMCC.
Education
Education continues to be a major driver of the IPM's agenda. Chris Bestley, our Director of Education, and Richard Pink, Associate Director, have noticeably strengthened the current program both in terms of content and new tutors.
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 4 -
Over the last 12 months, they have added new courses including Measuring the Value of Experiential Campaigns, Digital Compliance and Running Promotions on Mobile, both of which have been phenomenally successful.
The IPM Diploma in Promotional Marketing, with intakes in March and October, remains the standard-setting course in promotional marketing. To ensure we provide the very best and most useful content to delegates, each module has undergone the most thorough review in the Diploma's history. An international version of the Diploma has now been launched, in conjunction with EACA.
The IPM Diploma in Motivation, now in its eighth year, continues to attract a healthy number of students.
Strategic Thinking: this one-day course, aimed at more senior marketers, is now attracting more candidates than ever before.
Shopper Marketing: another one-day course that has seen the highest attendance since launch.
Two new one day courses, Measuring the Value of Experiential and Running Promotions on Mobile, were launched, in response to requests from the industry, and have already proved popular. A Digital Compliance course launches in May 2013, and plans are afoot for a Diploma in Experiential Marketing.
In-house training. Both agencies and brand owners continue to make use of our in-house training facility, with the latter particularly interested in giving their brand management teams better understanding of promotional marketing techniques.
Partnership with the IAB. We have been working with the Internet Advertising Bureau about adding modules covering the legal aspects of running promotions online into their IAB training courses.
Institute members benefit, of course, from significant savings on the above IPM courses.
Awards
The IPM Awards 2013 continue to build on the success of and changes to our awards program made over the last four years. In spite of a tight market, entries are up 15% on 2012 and the theme of 'Made in the UK' has been well received.
Winners of this year's Awards will be invited to submit entries to the European IMC Awards and MAAW Globe Awards (winning an IPM Award is the only way that a UK campaign can qualify for entry into either the IMC Awards or the Globes).
Legal Advisory Service
The Legal Advisory Service (LAS), led by Philip Circus, Beverley Saha and Ruth Hobbs, continues to grow in stature, and is the area in which we achieve unparalleled positive feedback. This is becoming an ever more important service, particularly in the area of digital promotions. We have also seen how failure to comply can result in damage to the reputations of brands.
Given Beverley Saha's area of expertise, the IPM is now able to offer two further services - firstly, drafting and reviewing commercial contracts from client/agency agreements, and secondly trademark registrations as they apply to promotions.
Ruth Hobbs has been taking the lead on the IPM's exploration of the opportunities and threats which Social Media offer for promotional marketers and, as mentioned previously, has just launched the IPM Guide to Running Promotions on Facebook. The LAS team is now talking to Twitter about its rules.
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 5 -
The IPM Seal, the consumer-facing accreditation scheme, is still available to promoters. Any promotion, in its entirety, that passes the rigorous guidelines laid down by the IPM's LAS team is awarded the Seal. The promoter may then include the Seal logo on-pack, on point-of-sale material, in ads, on direct marketing material and online as a reassurance to the consumer that the promotion is legal, decent, honest and truthful, and hence safe to participate in.
Significant savings on LAS usages are, of course, in place for Institute members.
The Institute has added to its legal support by offering advice on areas such as corporate finance, commercial property, employment law and commercial litigation. Members are able to access this advice, at very preferential rates, through our alliance with leading law firm Lewis Silkin.
Finally, the IPM can also offer legal advice on international promotions, calling upon the expertise and contacts of Phillip Circus, our Director of Legal Affairs. This service has seen a huge uptake in demand recently, and we expect that growth to continue
Joint Partnership Initiatives
A closer working relationship has been forged with the DMA, ISBA, IAB and the BCSC (British Council of Shopping Centres), with reciprocal member benefits being extended.
We worked closely with a number of trade bodies and regulatory bodies on the launch of the Experiential Marketing Code of Conduct. Among the industry bodies which have provided input to the Experiential Marketing Code of Conduct drafting process are: CAP; the Advertising Standards Authority (ASA); the Advertising Association (AA); the Incorporated Society of British Advertisers (ISBA); the Direct Marketing Association (DMA); the Portman Group; the Marketing Agencies Association (MAA); Eventia; the Public Relations Consultants Association (PRCA); the Word of Mouth Marketing Association (WOMMA); and the British Council of Shopping Centres (BCSC).
The IPM's Coupon Committee continues to campaign on the problems of Money Off Next Purchase coupon mis- and mal-redemption and fraud, particularly in the area of high value customer care vouchers. The IPM's recent negotiations with eBay have led the latter to adopt more rigorous rules for the posting of coupons and vouchers on the site with a view to criminal action being taken against guilty parties. A number of factors have driven media interest in this area: the recession and the resulting need to stretch household budgets; the rise in websites offering consumers money-saving advice; programmes about 'extreme couponing'; and court cases involving the theft or unlawful use of coupons.
As a result, there have been a number of media opportunities (on TV and radio, in the national press and online) for the IPM to highlight the problems of coupon misuse and point out the potential damage it could do, if unchecked, to UK companies.
Research and Insights
In 2010, the IPM launched its own research programme, to provide much needed data and insights into promotional effectiveness. This programme kicked off with a white paper that established, for the first time ever, an accurate estimate of the value of the promotions market - at least £36 billion. This exercise is being repeated in 2013. A number of white papers have been published, with seminars accompanying each White Paper; to date, these opportunities to network and to explore the findings of the research in more detail have been particularly well attended by brand owners and agencies.
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 6 -
In 2013, the IPM is continuing its relationship with leading research agency fast.MAP, partnering the latter in the eighth annual Marketing-GAP study. This is a high-profile annual study in which consumers are asked how they respond to a range of marketing techniques and creative treatments. Marketers are then asked how they think consumers respond to those techniques and treatments. In most cases, marketers are woefully wrong. With the IPM's support, the focus of the study is now on how to close the GAP - invaluable information for marketers and their agencies.
IPM associate director Paul Godwin, who has served on the IPM Board for a number of years and was planning director of IPM agency member Positive Thinking, leads the IPM Insights programme going forward
CoppaFeel!
The IPM has named breast cancer charity CoppaFeel! as it's first ever official charity, and will be running a range of awareness and fundraising activities across 2013.
CoppaFeel! is the only cancer charity in the UK specifically dedicated to awareness and education amongst young people (particularly those aged 18 to 30). Its aim is to stamp out late detection and misdiagnosis of breast cancer by ensuring that people know the signs and symptoms of breast cancer.
CoppaFeel! was founded in October 2009 by Kristin Hallenga, who now has inoperable tumours on her spine after doctors failed to spot breast cancer not once but twice. She was 23 when she went to the doctors; she is 25 now.
The IPM is now challenging its members - brand owners, agencies and service partners alike - to come up with some innovative and effective ways to help CoppaFeel! get its message across, whether that's to their own staff or to the public. We can't let embarrassment or ignorance continue to kill young people."
Industry Representation
The Institute continues to play an active role in the direction of the promotional marketing industry:
In Europe, through our membership of EACA and FEDMA, and through lobbying in Brussels and at Westminster;
Through our active membership in or partnership with marketing industry bodies and trade organizations including AA, ASA, ASBOF, CAP, ISBA, IPA, IAB, DMA, BCSC, POPAI, PROMOTA and BPMA;
We also maintain our profile by continuing our participation in the Parliamentary Debating Group.
Member involvement/Events
Member involvement is critical to the future success of the IPM, particularly at a time when it seeks to extend its services to the industry and make people and organisations from all marketing disciplines recognise that promotions are part of what they do.
As a result, last year saw the launch of more opportunities for Members and Non-Members to engage with both the IPM and with each other through Chairman's lunches and dinners, seminars, roundtables, briefings, and through more social networking events - sporting tournaments, quizzes, and further activities up and down the country.
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 7 -
Summary
The IPM is determined to make great strides in 2013 to make itself even more relevant to practitioners and brands. It will continue to educate agencies, brand owners and the industry at large about the value of promotions, not just for building sales but also for building brands long term and for changing consumers behaviour in other, non-sales related, ways.
With the initiatives that we are taking, and through the hard work of the Board and the IPM Team, I am confident that we are making the changes necessary to position us to take advantage of the opportunities that are ahead and to provide added value and confidence to businesses that promote.
Directors
The following directors have held office since 1 October 2011:
Laura Appleby
Stephen Bentley (Appointed 1 January 2012)
Samuel Blunt
Jordi Connor
Paul Dwan (Appointed 1 January 2012)
Paul Godwin (Resigned 5 January 2012)
Christopher Goldson (Resigned 28 June 2012)
Peter Kerr
Ian Moore
Alexander Meisl (Appointed 1 January 2013)
Rebecca Munday
Kimberley Ann Robinson (Appointed 1 January 2013)
Marcus Sandwith (Appointed 1 January 2013)
Bob Suppiah
Susan Speller (Resigned 31 December 2011)
John Sylvester
Matthew Tabb (Appointed 1 January 2012)
Graham Temple
Nicola Thompson
Suzi Watford (Resigned 28 June 2012)
James Williams (Resigned 7 January 2012)
Auditors
The auditors, FSPG, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 8 -
Statement of directors' responsibilities
The directors are responsible for preparing the Directors' Report and the financial statements in accordancewith applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law thedirectors have elected to prepare the financial statements in accordance with United Kingdom GenerallyAccepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under companylaw the directors must not approve the financial statements unless they are satisfied that they give a true andfair view of the state of affairs of the company and of the profit or loss of the company for that period. Inpreparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;- make judgements and accounting estimates that are reasonable and prudent;- prepare the financial statements on the going concern basis unless it is inappropriate to presume that thecompany will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explainthe company’s transactions and disclose with reasonable accuracy at any time the financial position of thecompany and enable them to ensure that the financial statements comply with the Companies Act 2006. Theyare also responsible for safeguarding the assets of the company and hence for taking reasonable steps for theprevention and detection of fraud and other irregularities.
Statement of disclosure to auditors
So far as the directors are aware, there is no relevant audit information of which the company's auditors areunaware. Additionally, the directors have taken all the necessary steps that they ought to have taken asdirectors in order to make themselves aware of all relevant audit information and to establish that thecompany's auditors are aware of that information.
This report has been prepared in accordance with the special provisions relating to small companies withinPart 15 of the Companies Act 2006.
On behalf of the board
Rebecca Munday
Director
4 April 2013
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
- 9 -
We have audited the financial statements of The Institute of Promotional Marketing Limited for the year ended30 September 2012 set out on pages 11 to 17. The financial reporting framework that has been applied intheir preparation is applicable law and the Financial Reporting Standard for Smaller Entities (effective April2008) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities).
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 ofthe Companies Act 2006. Our audit work has been undertaken so that we might state to the company'smembers those matters we are required to state to them in an auditors' report and for no other purpose. Tothe fullest extent permitted by law, we do not accept or assume responsibility to anyone other than thecompany and the company's members as a body, for our audit work, for this report, or for the opinions wehave formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors' Responsibilities Statement set out on pages 1 - 8, the directors areresponsible for the preparation of the financial statements and for being satisfied that they give a true and fairview. Our responsibility is to audit and express an opinion on the financial statements in accordance withapplicable law and International Standards on Auditing (UK and Ireland). Those standards require us tocomply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficientto give reasonable assurance that the financial statements are free from material misstatement, whethercaused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate tothe company's circumstances and have been consistently applied and adequately disclosed; thereasonableness of significant accounting estimates made by the directors; and the overall presentation of thefinancial statements. In addition, we read all the financial and non-financial information in the Directors' Reportto identify material inconsistencies with the audited financial statements. If we become aware of any apparentmaterial misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion the financial statements:- give a true and fair view of the state of the company's affairs as at 30 September 2012 and of its profit
for the year then ended;- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice applicable to Smaller Entities; and- have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors' Report for the financial year for which the financialstatements are prepared is consistent with the financial statements.
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
- 10 -
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us toreport to you if, in our opinion:- adequate accounting records have not been kept, or returns adequate for our audit have not been
received from branches not visited by us; or- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or- we have not received all the information and explanations we require for our audit; or- the directors were not entitled to prepare the financial statements in accordance with the small
companies regime and take advantage of the small companies' exemption in preparing the directors'report.
David Tropp (Senior Statutory Auditor)
for and on behalf of FSPG 4 April 2013
Chartered Accountants
Statutory Auditor 21 Bedford Square
London
WC1B 3HH
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 11 -
2012 2011
Notes £ £
Turnover 1,093,469 1,109,713
Cost of sales (434,222) (491,233)
Gross profit 659,247 618,480
Administrative expenses (641,095) (614,364)
Other operating income 500 350
Operating profit 2 18,652 4,466
Other interest receivable and similar income 3 2,471 219
Profit on ordinary activities before
taxation 21,123 4,685
Tax on profit on ordinary activities 4 (494) (92)
Surplus for the year 10 20,629 4,593
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)BALANCE SHEET
AS AT 30 SEPTEMBER 2012
- 12 -
2012 2011
Notes £ £ £ £
Fixed assets
Tangible assets 5 4,866 12,535
Investments 6 51 51
4,917 12,586
Current assets
Debtors 7 248,056 289,994
Cash at bank and in hand 408,656 261,933
656,712 551,927
Creditors: amounts falling due within
one year 8 (501,893) (425,406)
Net current assets 154,819 126,521
Total assets less current liabilities 159,736 139,107
Capital and reserves
Profit and loss account 10 159,736 139,107
Reserves 159,736 139,107
These financial statements have been prepared in accordance with the provisions applicable to companiessubject to the small companies regime within Part 15 of the Companies Act 2006 and with the FinancialReporting Standard for Smaller Entities (effective April 2008).
Approved by the Board for issue on 4 April 2013
Rebecca Munday
Director
Company Registration No. 00975635
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 13 -
1 Accounting policies
1.1 Accounting convention
The financial statements are prepared under the historical cost convention and in accordance with theFinancial Reporting Standard for Smaller Entities (effective April 2008).
1.2 Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom AccountingStandards (United Kingdom Generally Accepted Accounting Practice), which have been appliedconsistently (except as otherwise stated).
1.3 Turnover
Turnover represents amounts receivable for memberships and events net of VAT. Membership incomeis recognised and deferred over the period of the membership and other income is recognised in theperiod that the event takes place.
1.4 Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated towrite off the cost less estimated residual value of each asset over its expected useful life, as follows:
Land and buildings Leasehold 33% straight line
Computer equipment 20% straight line
Fixtures, fittings & equipment 20% straight line
Website Over 2 years straight line
1.5 Investments
Fixed asset investments are stated at cost less provision for diminution in value.
1.6 Pensions
The company operates a defined contribution scheme for the benefit of its employees. Contributionspayable are charged to the profit and loss account in the year they are payable.
1.7 Group accounts
The financial statements present information about the company as an individual undertaking and notabout its group. The company and its subsidiary undertaking comprise a small-sized group. Thecompany has therefore taken advantage of the exemptions provided by section 399 of the CompaniesAct 2006 not to prepare group accounts.
2 Operating profit 2012 2011
£ £
Operating profit is stated after charging:
Depreciation of tangible assets 7,669 11,736
Auditors' remuneration 6,000 7,000
During the year the directors received no emoluments (2011: £nil).
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 14 -
3 Investment income 2012 2011
£ £
Bank interest 2,471 219
2,471 219
4 Taxation 2012 2011
£ £
Domestic current year tax
U.K. corporation tax 494 45
Adjustment for prior years - 47
Total current tax 494 92
5 Tangible fixed assets
Land and
buildings
Plant and
machinery etc
Total
£ £ £
Cost
At 1 October 2011 & at 30 September 2012 7,663 30,580 38,243
Depreciation
At 1 October 2011 4,215 21,493 25,708
Charge for the year 2,529 5,140 7,669
At 30 September 2012 6,744 26,633 33,377
Net book value
At 30 September 2012 919 3,947 4,866
At 30 September 2011 3,448 9,087 12,535
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 15 -
6 Fixed asset investments
Shares in
group
undertakings
and
participating
interests
£
Cost
At 1 October 2011 & at 30 September 2012 51
Net book value
At 30 September 2012 51
At 30 September 2011 51
Holdings of more than 20%
The company holds more than 20% of the share capital of the following companies:
Company Country of registration or Shares held
incorporation Class %
Subsidiary undertakings
Sales Promotion Publishing Limited UK Ordinary 100.00
The aggregate amount of capital and reserves and the results of these undertakings for the last relevantfinancial year were as follows:
Capital and
reserves
Profit/(loss)
for the year
2012 2012
Principal activity £ £
Sales Promotion Publishing Limited Magazine Publishing (3,533) (8,087)
The above subsidiary undertaking ceased to trade in the year.
7 Debtors 2012 2011
£ £
Trade debtors 174,101 148,400
Amounts owed by group undertakings and undertakings in which the company has a participating interest - 63,513 Other debtors 73,955 78,081
248,056 289,994
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 16 -
8 Creditors: amounts falling due within one year 2012 2011
£ £
Trade creditors 92,643 111,131
Amounts owed to group undertakings and undertakings in which the company has a participating interest 7,928 - Taxation and social security 47,438 17,472
Other creditors 353,884 296,803
501,893 425,406
Other creditors includes deferred income of £332,859 (2011: £284,792).
9 Pension costs
Defined contribution
The company operates a defined contribution pension scheme. The assets of the scheme are heldseparately from those of the company in an independently administered fund. The pension cost chargerepresents contributions payable by the company to the fund.
2012 2011
£ £
Contributions payable by the company for the year 1,577 1,914
10 Statement of movements on profit and loss account
Profit and
loss
account
£
Balance at 1 October 2011 139,107
Profit for the year 20,629
Balance at 30 September 2012 159,736
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 17 -
11 Financial commitments
At 30 September 2012 the company was committed to making the following payments under non-cancellable operating leases in the year to 30 September 2013:
2012 2011
£ £
Operating leases which expire:
Between two and five years 52,000 52,000
12 Liability of members
Every Corporate Member of the Institute undertakes to contribute to the assets of the Institute, in the event of it being wound up while he is a Corporate Member or within one year afterwards, for payment of the debts and liabilities of the Institute contracted before he ceased to be a Corporate Member, and the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributors among themselves, as additional amount (after payment of the Corporate Member's outstanding liabilities to the Institute) as may be required. Such amount not to exceed the current annual membership subscription as it applies to that Corporate Member.
The liability of every Personal Member in the event of the Institute being wound up or dissolved is limited to the settlement in full of any Personal Membership subscription and other fees or dues outstanding on the date that a Winding Up Petition or other Statutory Instrument is granted by an appropriate Court.
13 Related party relationships and transactions
During the year the company charged Sales Promotion Publishing Limited £11,630 (2011: £139,219) inrespect of recharged expenses for employees services.
During the year the company was charged by Sales Promotion Publishing Limited £10,950 (2011:£52,435) in respect of recharged invoices.
Sales Promotion Publishing Limited is a subsidiary of the company.
At the year end the amount owed by the company was £7,928 (2011: £63,513 owed to the company).
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)DETAILED TRADING AND PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 18 -
2012 2011
£ £ £ £
Turnover
Subscriptions 335,376 359,051
Awards entries 114,596 123,152
Awards events 84,460 89,355
Social events 87,167 34,745
Education 172,674 232,849
Other sundry income 6,139 4,546
Legal Advice Services 293,057 266,015
1,093,469 1,109,713
Cost of sales
Awards 125,864 124,238
Social events 34,338 24,405
Education 100,772 145,486
Europe (including expense) 4,333 14,596
Research and marketing 19,005 30,543
Legal advice services 149,910 151,965
(434,222) (491,233)
Gross profit 659,247 618,480
Administrative expenses (641,095) (614,364)
18,152 4,116
Other operating income
Rent receivable 500 350
Operating profit 18,652 4,466
Other interest receivable and similar income
Bank interest received 2,471 219
Profit before taxation 21,123 4,685
THE INSTITUTE OF PROMOTIONAL MARKETING LIMITED
(LIMITED BY GUARANTEE)SCHEDULE OF ADMINISTRATIVE EXPENSES
FOR THE YEAR ENDED 30 SEPTEMBER 2012
- 19 -
2012 2011
£ £
Administrative expenses
Wages and salaries (excl. N.I.) 290,627 247,141
Employer's N.I. contributions 33,341 26,614
Staff pension costs 1,577 1,914
Staff training 1,158 982
Staff redundancy 3,702 -
Rent re operating leases 66,247 64,500
Rates 29,799 25,161
Insurance 11,625 11,263
Cleaning 3,116 3,595
Repairs and maintenance 86 (1,096)
Printing, postage and stationery 7,349 13,094
Telephone 4,275 5,209
Computer running costs 4,609 1,175
Website costs 7,663 12,938
Equipment leasing 2,718 9,246
Travel, commerce, subsistence and entertaining 5,656 6,223
Advertising and public relations 9,561 9,837
Legal and prof fees 5,052 5,774
Consultancy Fees 95,987 119,078
Accountancy 22,188 6,251
Audit fees 6,000 7,000
Bank charges 5,517 6,788
Bad and doubtful debts 370 (83)
Sundry expenses 4,299 9,516
Subscriptions 10,904 10,508
Amortisation on short leasehold 2,529 2,529
Depreciation on FF & E 681 681
Depreciation on computer equipment 4,459 8,526
641,095 614,364
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