WE DO WHAT WE SAY. Annual Report and Accounts 2008/2009. breakthrough.org.uk

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1 WE DO WHAT WE SAY Annual Report and Accounts / breakthrough.org.uk

2 R E MOF CE R O U N T R R A F U F E EA C A RE E F ST h g n F H EA i g T R n B igon a i hrou p T esearch R am C ducat E Contents Patron s introduction Another Breakthrough Year Working for the Public Benefit Our Five-Year Strategic Plan 2014 Trustees Report: Our Plans Our Wins Our Next Steps Financial Review: How We Raised And Spent Your Money Consolidated Statement of Financial Activities Balance Sheets Consolidated Cash Flow Statement Notes to the Financial Statements Legal and Administrative Details Independent Auditors Report to the Members of Breakthrough Breast Cancer With Thanks Contents 3

3 Breakthrough Breast Cancer has seen remarkable growth over the years, in the funds we raise and the work we do to save lives and change futures for people affected by breast cancer. ANOTHER BREAKTHROUGH YEAR WORKING FOR THE PUBLIC BENEFIT Chairman and Chief Executive s introduction We have expanded our research across the UK and today we have almost 200 scientists working with us in London, Manchester and Edinburgh. We have made demonstrable improvements in breast cancer treatments and services, and increased awareness of the disease. These achievements are detailed in the following pages. With every step taken, we have also identified how much further we can and should be going. The year has been one of financial challenge around the world, and Breakthrough has not been immune from the effects of this. Our hopes to increase income have not been realised, despite the dedicated commitment and achievements of all our supporters and the continued strong relationship with key corporate partners. Their contribution is recognised with genuine thanks in this report. Our work would not be possible without them. The past year has shown once again the dedication, enthusiasm and professionalism of our staff, volunteers and trustees, ensuring that our effectiveness is maximised even when money is tight. Against a backdrop of hard times we have developed our Five-Year Strategic Plan A wide range of stakeholders have contributed to this, and we have set out clear ambitions on how we will make our unique contribution in research, ensure improved services and increase awareness. The years ahead build on the quinquennial reviews of the Breakthrough Research Centre and of the Breakthrough Generations Study. Both have demonstrated the world-class status of our work under the exceptional leadership of Professor Alan Ashworth. We have made dramatic discoveries, leading to potential new treatments. Our new Research Units are already contributing to these achievements and are set to do more, both individually and collectively. The next few years will be ones of unprecedented challenge for the NHS, seeing increasing demand against slow or no growth in funding. Breakthrough s unique Campaigns & Advocacy Network (CAN), reaching every part of the UK, makes us well placed to defend and take further the improvements we have helped bring about in breast cancer services. We will also be working to reach more women with our life-saving Touch Look Check TLC breast awareness message. All our achievements depend on our ability to raise money to fund the work we need to do. With our bold new branding, and by focusing on scaleable and sustainable fundraising initiatives, we can best guarantee our future work. In the past year we have also put new emphasis on better supporting all our donors, whether they are giving by regular donation, through a Breakthrough Group, as a Challenger or a participant in sponsored events. We continue to manage our costs, always ensuring that together we can both raise the maximum possible and ensure that it is spent to greatest effect to achieve our vision of a future free from the fear of breast cancer. Breakthrough is proud of leading the way and we are committed to continue doing so in the coming years. Jeremy Hughes Chief Executive Stephanie Monk Chairman Our aims for / were set out in our Three-Year Strategic Plan , for which / was the second year. Working within our overall charitable objectives we set ourselves three goals to drive forward our charitable work during the year under review. Our Goals Establishing a cohesive UK research network of scientific excellence that increased understanding of breast cancer and would measurably translate into improvements in prevention, quality of life, diagnosis and treatment. Extending Breakthrough s influence and impact across the UK engaging stakeholders in evidence-based campaigns and policies that would lead to tangible improvements in services, access to treatments and research. Reaching targeted groups of women at higher risk of breast cancer to influence their behaviour and so drive early diagnosis. Our progress towards these objectives is detailed in this report. Our trustees confirm they have referred to the Charity Commission s general guidance on public benefit when reviewing our activities against the objectives we set ourselves, and in planning future activities. Over the past two years we have made significant progress towards strengthening our capabilities to achieve our vision, so much so that the development of the next strategic plan was brought forward. Our next steps will take us towards the outcomes identified in a new five-year strategic plan for More than 1,000 WOMEN die of breast cancer every month in the UK. 4 Another Breakthrough Year Working for the Public Benefit 5

4 OUR FIVE-YEAR STRATEGIC PLAN 2014 Our new five-year strategic plan strives to integrate our capabilities in research, campaigning and education to ensure that groundbreaking research findings are translated into positive outcomes for people affected by breast cancer. We will work towards these outcomes by making the most out of our research investment, using our scientific knowledge and understanding to advance clinical practice so that new ways to prevent, diagnose and treat breast cancer can be developed. We will use our capabilities in campaigning, influencing, education and information to ensure that new prevention measures, treatments and services are made available to those who need them, are adopted by healthcare professionals and are understood by the general public. By 2014 more people will Be able to recognise the signs and symptoms of breast cancer and receive an accurate and timely diagnosis. Be able to access the appropriate treatments and services when diagnosed with, or at high risk of, breast cancer. No longer have a life threatening condition, thanks to more effective treatments. OUR PLANS OUR WINS OUR NEXT STEPS Adopting an outcomes approach to our work will ensure we focus our activities and be sure of the impact we make. Our strategic plan also sets out the priorities for continuing to strengthen our organisation; our next steps are therefore described using the priorities within our new five-year strategic plan. 1 IN 9 WOMEN in the UK will develop breast cancer. Have a more positive experience of treatment and services, and their quality of life will be maximised. Take measures to reduce their risk and be aware of more ways to prevent breast cancer. 6 Our Five-Year Strategic Plan 2014 Trustees Report 7

5 RESULTS THROUGH RESEARCH We make medical breakthroughs for women affected by breast cancer. We have established a cohesive UK research network of scientific excellence that increases understanding of breast cancer and will measurably translate into improvements in prevention, quality of life, diagnosis and treatment. In 1999, the Breakthrough Toby Robins Breast Cancer Research Centre in the Mary-Jean Mitchell Green Building at The Institute of Cancer Research was established to understand the causes of breast cancer and find new approaches to treat it. This year a major breakthrough from the Research Centre has led to the development of a new drug Olaparib as a potential treatment for breast cancer. The groundbreaking work that made this possible was led by Professor Alan Ashworth. It offers entirely new ways of treating breast cancer, and it could also be applied to many other types of cancer. In, the results of the Phase I clinical trial for Olaparib were published in the New England Journal of Medicine. Dr Andrew Tutt, Director of the Breakthrough Research Unit at King s College London, presented the next stage of the work the results of the Phase II clinical trial at the world s largest clinical cancer conference held by the American Society of Clinical Oncology. Described in the New Scientist as being a pioneering therapy that is allowing women with late-stage, drug-resistant breast and ovarian tumours to survive for longer, these results represent an outstanding achievement for Breakthrough in rapidly translating laboratory research into potential treatment. Olaparib is a type of drug called a PARP inhibitor. By exploiting the original discovery of scientists at the Breakthrough Research Centre, over 30 clinical trials are now being developed around the world to test PARP inhibitors in a wide range of human cancers. This discovery could benefit many of the 1 in 3 people who will be diagnosed with cancer in the future. External scientists are very much aware of the exceptional nature of the achievements at the Breakthrough Research Centre, in particular achieving so much, so quickly and with so little money is a remarkable accomplishment. Professor René Bernards Head of the Division of Molecular Carcinogenesis at the Netherlands Cancer Institute In the year under review, a report from the Breast Cancer Clinical Outcomes Measures (BCCOM) project, funded by us, was published in the British Journal of Cancer. The project is an audit of all breast cancers that are detected symptomatically about 70% of all cases in the UK. The results of this work highlighted regional differences in the treatment that patients receive. Such evidence is vital for improving breast cancer services and clinical outcomes for patients. This will inform Breakthrough s plans to campaign for improvements in these areas. Our aims To hold a quinquennial (fiveyearly) review of our major ongoing research programmes to ensure that funding is being committed to research of the highest quality. To expect all three Breakthrough Research Units to be operational. Our achievements Quinquennial reviews of the Breakthrough Research Centre and the Breakthrough Generations Study were held in the year under review. They were conducted by independent panels of senior scientific and clinical experts from around the world, who assessed the work based on internationally high standards of research quality and impact. Thorough assessments were made of the progress of our programmes and future plans to ensure funding was put to the best possible use to benefit people affected by breast cancer. The review of the Breakthrough Research Centre rated the quality of its work as being outstanding overall the highest rating possible. The Centre s research was considered to be pioneering and trend setting and its new approaches to tackling breast cancer are exemplified in the success of PARP inhibitors. Many other programmes are showing great promise in understanding and developing potential new treatments for breast cancer. Collaborations with several biotechnology and pharmaceutical companies are in progress, with the aim of taking new drugs to the clinic for patient benefit. The Breakthrough Generations Study, which began in 2004, includes 100,000 women and aims to discover the causes of breast cancer. The review panel concluded that progress to date has been outstanding through the collection of comprehensive information about participants genetics and lifestyle. The next phase will see an increased focus on analysing this information to shed light on the causes of breast cancer, benefiting people who are at risk of developing the disease. The Breakthrough Research Unit at the University of Edinburgh, led by Professor David Harrison, marked the end of its first year, during which a major focus has been to recruit staff. Already, the unit has published key research findings in Cancer Research, describing a new way to predict patients that will benefit from treatment with Herceptin. The Breakthrough Research Unit at King s College London, led by Dr Andrew Tutt, officially opened in February. With 12 scientists now in place, the unit focuses on a type of breast cancer called triple negative, which affects 15 20% of all breast cancer patients and is very hard to treat. Over the year scientists at the unit have contributed to 17 publications in international scientific journals. Dr Tutt also leads the Triple Negative breast cancer Trial, which is investigating a potential new therapy. Research began at the Breakthrough Research Unit at the University of Manchester, led by Professor Anthony Howell. The first team, led by Professor Göran Landberg, joined in September and has already published work in Clinical Cancer Research, showing that a protein called PELP1 could be used to indicate how patients respond to hormone therapy. 8 Trustees Report Trustees Report 9

6 To continue to encourage collaboration between scientists and hold at least two workshops, focusing on a specific theme, where new ideas and approaches to tackle breast cancer can be generated. We encourage a collaborative approach to research, whether our scientists are in the same building or at different locations in the UK. Sharing results in this way avoids duplication, and speeds up research to diagnose, treat and prevent breast cancer. To this end we held a second Annual Workshop for Breakthrough scientists in September. We also held smaller meetings to advance progress in two priority areas: breast development and bioinformatics. A FORCE FOR CHANGE To predict with greater accuracy whether a patient is likely to benefit from Herceptin and other targeted therapies, through our first Breakthrough Clinician Scientist Fellowship. To introduce a new Research Grants Management System, to manage research information and all aspects of our grant application process. Dr Anthony Kong completed his first year in Oxford as a Breakthrough Clinician Scientist. He recruited a small team of scientists, established experimental techniques and initiated collaborations with research scientists and pharmaceutical companies. Support for clinical researchers advances our aim to translate research from bench to bedside. Our work has been translated to at least eight clinical trials, all investigating potential new ways to treat breast cancer patients. Our online Grant Management System is nearing completion its introduction will improve our efficiency in research management, by streamlining internal processes and access to information. We work to positively change women s experience of breast cancer. We extend our influence and impact through evidence-based campaigns and policies leading to real improvements in breast cancer services and treatments. Breast cancer is the UK s most common cancer. Its impact cannot be overlooked: nearly 46,000 women and 300 men are diagnosed each year, over 1,000 people die each month and more than 2% of the total female population have or have had the disease. Although services and treatments continue to improve and mortality rates are falling, the UK still lags behind many comparable European countries. Throughout the year we were in contact with key political figures in Westminster. We were strongly represented at all three major conferences, running events on four major areas of inequality in breast cancer services: age discrimination, black and minority ethnic communities, access to lymphoedema services and secondary breast cancer. We continue to build our relationships with parliamentarians, providing the secretariat for the All-Party Parliamentary Group on Breast Cancer and keeping awareness of the issues facing women with breast cancer at the front of politicians minds. OUR NEXT STEPS We will continue to build on our bench to bedside approach. We will implement the recommendations of the quinquennial reviews and monitor the progress of all programme grants, project grants and fellowships. We will oversee and support the development of the Breakthrough Generations Study to ensure that the information collected is put to the best use to understand the causes of breast cancer. We will oversee and support the Research Centre in developing and delivering its five-year strategy to advance diagnosis, treatment and prevention of breast cancer. We will mark the Research Centre s 10 th anniversary, its successes and its ambitions for the future. We will continue to promote a multidisciplinary approach to research and support collaboration between scientists at different sites. We will support at least two workshops focusing on a specific research theme where new ideas and approaches to tackle breast cancer can be generated. We will develop plans for an international conference, to be held in 2010/2011, as a forum to advance understanding of and develop new approaches to triple negative breast cancer. We will support Breakthrough s research strategy, identifying scientific priorities where we can make a significant impact for people affected by breast cancer. We will measure the outcomes and impact of our research and our funding streams. This will demonstrate further how our research is benefiting the public, particularly people affected by breast cancer. We will ensure our Research Grants Management System is fully operational, effectively underpinning all aspects of our grant management. We believe the impact of the disease is unacceptable and throughout the year we continued our fight against breast cancer through working across the UK with our Campaigns & Advocacy Network (CAN) to make a difference for breast cancer patients and survivors. At our Westminster Fly-In, MPs met members of CAN to discuss issues relating to our two national campaigns, Screening Saves Lives and Left in the Dark. 10 Trustees Report

7 Our aims To build on existing campaigns and develop two new campaigns, following consultation with stakeholders. To launch 10 new Service Pledge sites, including the North West and Scotland. Our achievements We launched the Constant Reminder? Living with Lymphoedema campaign. Informed by members of Breakthrough s CAN, healthcare professionals, current research, national guidance and a survey of patients following their breast cancer treatment, the campaign aims to improve the provision of access to and research into lymphoedema. Launched at the Houses of Parliament, the campaign has raised awareness of the need for improved services among MPs, the Department of Health and Primary Care Trusts. To understand the issue of age equality in the treatment and services provided for older breast cancer patients, we consulted with CAN members, performed a literature review and surveyed healthcare professionals. Our findings contributed to the Department of Health s review into age discrimination in health and social care, and the Government Equalities Office consultation on the Equality Bill on how to end age discrimination in services and public functions. We recruited a further 11 hospitals to participate in our Service Pledge for Breast Cancer. The Service Pledge sets the standard we believe every hospital breast unit should meet. It asks healthcare professionals to work towards meeting these standards, through consulting with patients about making improvements that matter most to them. The 11 hospitals contacted a group of nearly 1,500 patients and obtained feedback from over 800 on their services via a patient survey and in-depth interviews. This work will benefit the thousands of patients using these services both now and in the future. It also demonstrates the effectiveness of collaborative working and patient-led service improvement, and is the model that we are promoting for widespread adoption in all of the UK s breast units. Around 15,000 patients will experience better breast services over the next five years, thanks to our Service Pledge for Breast Cancer. To lead on obtaining the views of people affected by breast cancer, for the Government s review of drug co-payments. To ensure our influence at local level is as strong as our national influence. We will develop our Campaigns & Advocacy Network (CAN) to ensure its potential for influencing at a local level is fully exploited. To advance our work in Scotland, hold a lobbying event with Scottish CAN members, key political contacts and health professionals in Edinburgh in December. In June, the Government announced a review into paying for additional drugs privately and looked to organisations like us to represent the public view. Informed by our stakeholders and experts in health economics, medical ethics, breast cancer patients, healthcare professionals and patient advocates, we submitted a report to the governmental review led by the National Cancer Director, Professor Mike Richards. The evidence provided by us was acknowledged by Professor Richards in his report. In response to this review, the Department of Health and NICE have introduced new initiatives to reduce the need for patients across England to purchase medicine privately. For patients who still wish to purchase treatment privately, they are now able to do so without the risk of compromising their entitlement to NHS care. As an increasing proportion of key decisions in healthcare are being made locally we have developed a series of initiatives to support our CAN members, ensuring they are able to campaign effectively in their local area. Through training programmes and regular communication, we provided knowledge and practical tips to maximise the impact of their local campaigns. A number of CAN members took part in our Screening Saves Lives campaign through promoting the importance of early detection in their local area. Actions included organising a bus tour to distribute breast awareness literature to women over the age of 50 and working with a GP surgery to identify women who had missed their NHS breast screening appointments and finding ways to encourage them to attend. In December we held our Scottish Conversation. This brought together key stakeholders to reflect on the Scottish Government s new cancer strategy and to decide the issues that we will be taking forward in Scotland. Three campaign themes were chosen age equality, lymphoedema and GP referral. To influence significant areas of health policy, through the Cancer Reform Strategy. To ensure the new National Institute for Health and Clinical Excellence (NICE) guidelines on early and advanced breast cancer reflect the needs of people affected by breast cancer. Our Chief Executive chairs the Breast Cancer Working Group of the Cancer Reform Strategy and sits on the Advisory Board, ensuring continued focus on key areas such as screening and waiting times. We continued to influence health policy by responding to numerous NICE consultations, including input into NICE guidelines for early and advanced breast cancer and the use of lapatinib in previously treated, advanced, or metastatic breast cancer. As part of the National Cancer Survivorship Initiative s Research steering group, we gathered breast cancer stakeholders views on the gaps in current cancer survivorship research. This fed into the national evidence review to ensure that the needs of breast cancer survivors will be reflected in UK research priorities. To influence Better Cancer Care, mapping out the Scottish Government s approach to cancer care, through identifying issues of importance to people affected by breast cancer in Scotland. We ensured that the views of our Scottish breast cancer stakeholders were communicated to the Scottish Government in our response to the Better Cancer Care consultation. The strategy was published in October. Our Director for Scotland represents breast cancer stakeholders on the Chemotherapy and Living with Cancer expert advisory groups who will implement the strategy. 12 Trustees Report Trustees Report 13

8 OUR NEXT STEPS We will ensure that breast cancer is kept high on the political agenda in the run up to the General Election in This will include building on existing campaigns and also take into account the views on breast cancer services based on our surveys of patients. We will work with our CAN members to improve the provision of and access to lymphoedema services at a local level across the UK. We will launch our age equality campaign, with the goal of ensuring that age is not the defining issue for women when accessing breast cancer services and treatments. We will continue to ensure the needs of our stakeholders are reflected in national Cancer Reform Strategy initiatives, including survivorship research, awareness-raising and via the NICE consultation process for guidelines, treatments and technologies. We will begin implementation of the Service Pledge in Scotland and to recruit cancer networks in England to accelerate the pace with which the Service Pledge can be rolled out across the UK. We will progress our campaigns, promote the Service Pledge and strengthen CAN membership in Scotland, to be the voice of people affected by breast cancer in Scotland. FACTS NOT FEAR We share knowledge and save lives. We reach specific groups of women at higher risk of breast cancer to influence their behaviour and drive early diagnosis. Early detection saves lives around 9 out of 10 women who are diagnosed with breast cancer at an early stage survive for at least five years. This drops to 1 in 10 for women who are diagnosed later, after breast cancer has already spread. Breast awareness, alongside breast screening, is a vital part of early detection. Our Touch Look Check TLC message reached 55% of women aged 18 and over through our work for Breast Cancer Awareness Month. We undertook a wide range of research and insight work, in the year under review, to understand women s attitudes and behaviours in terms of breast awareness, knowledge of signs and symptoms and perceptions of breast cancer risk. This insight has enabled us to feel confident that our health promotion and information work responds to, and has been informed by, the women we are working to support. I ve lost my sister and almost myself to breast cancer. Enough is enough. I m not going to take this lying down. We need to make people and government see that this disease is still devastating lives and they have the power to change that. I m with Breakthrough because they don t just dream of a better future they go out there and make it happen. Ursula Van Mann Member of Breakthrough s Campaigns & Advocacy Network 14 Trustees Report 15

9 Our aims To continue the implementation of our pilot study in Camden and evaluate the results. If results indicate a positive effect on the uptake of screening, and an increase in awareness of the signs and symptoms of breast cancer, we will plan to roll out the project more widely. Our achievements Using the results from exploratory research, in 2007/, into awareness of the signs and symptoms of breast cancer, we developed and piloted an integrated social marketing campaign. Be Your Own Breast Friend was promoted in Camden between February and May to increase awareness of the signs and symptoms of breast cancer in women aged 45 54, and to encourage women aged to attend NHS breast screening when invited. Camden was chosen for the pilot project on the basis of a number of factors: low uptake of screening appointments when invited; screendetected cancers were at a more advanced stage than in other parts of the country; and overall there was low breast awareness. The area covered by Kensington & Chelsea Primary Care Trust acted as the control area for the study. Initial evaluation shows knowledge of three or more signs and symptoms has increased by 18% among women aged 45 49, and by 6% among women aged Interim data also currently suggests a positive impact on the uptake of screening by women aged in Camden compared with the previous screening round. The final confirmed data will be available in early To develop our range of awardwinning information materials, so they continue to be a useful resource for those affected by breast cancer. We ran a seminar about the signs and symptoms of breast cancer and our health promotion work at the Nursing In Practice Conference, answering questions from over 100 practice nurses about how to discuss breast awareness with their patients. We distributed nearly 100,000 health publications throughout the year a quarter of which were online downloads, a 20% increase compared with 2007/. These helped women across the UK to understand the facts and make informed choices about their treatment. Our publications won three awards at the Association of Medical Research Charities and Science Communication Awards, including Overall Winner. We also achieved commendation for The Best Treatment: Your Guide to Breast Cancer Treatment in Scotland at the Ask About Medicine Awards. To ensure our publications are up-to-date, accessible and accurate we reviewed and updated many of our publications. We held a series of focus groups with women aged and healthcare professionals to develop the third edition of our Breast Cancer Risk Factors: The Facts. We also updated our other publication The Best Treatment: Your Guide to Breast Cancer Treatment in England and Wales to include the latest guidance from the National Institute for Health and Clinical Excellence and the Association of Breast Surgery. To develop Touch Look Check TLC further so that it remains an effective health message, and research new ways to promote it, particularly to women aged To develop our relationship with GPs and healthcare professionals, and encourage them to communicate the signs and symptoms of breast cancer with their patients. We will provide tools and information to help with this work if needed. We consulted over 2,000 women across the UK via an online survey and focus groups to evaluate and test our Touch Look Check TLC breast awareness information and materials. Responding to the feedback, we introduced illustrations to help women recognise the signs and symptoms of breast cancer and made our message about how to be breast aware crystal clear. The feedback also highlighted how best to promote breast awareness information, forming a basis for the development of a year-round Touch Look Check TLC campaign in /2010. As well as representing our stakeholders on the National Awareness and Early Detection Initiative Forum, we have worked with the Department of Health and other breast cancer charities to agree key messages about breast cancer, and signs and symptoms, to ensure consistent information is available for women. We also worked with experts and breast cancer charities to develop a national breast cancer awareness measurement tool that can be used across the country to monitor levels of breast awareness and the effectiveness of breast health promotion. The tool is a standard set of questions about breast cancer signs and symptoms, which have been tested among women. It will be vital in ensuring our health promotion has maximum benefit for the women we aim to reach. We consulted with GPs and practice nurses in the development of our Touch Look Check TLC message to ensure that our breast awareness information will help them discuss the importance of being breast aware with their patients. The response we received was extremely positive supporting the introduction of illustrations of signs and symptoms, and the use of a question format to prompt women when reading. In Breast Cancer Awareness Month, we provided over 10,000 GPs with Touch Look Check TLC information to be displayed in practices. OUR NEXT STEPS We will continue the evaluation of our pilot study in Camden and assess any increase in the uptake of screening. We will share the results of the pilot study with other organisations, specifically primary care organisations, to support similar work that may be planned independently. If final results indicate a positive effect on the uptake of screening, in addition to the increase in awareness of the signs and symptoms of breast cancer, we will explore how to build on these achievements. We will respond to feedback from women that they need a continuous reminder to check their breasts by developing and launching an ongoing campaign to promote Touch Look Check TLC throughout the year across the UK. We aim to increase awareness of breast cancer signs and symptoms and, through a number of activities across the UK, encourage women to attend NHS breast screening when invited. All our publications were included in the National Cancer Information Pathways pilot programme led by the National Cancer Action Team. The pilot programme is working towards improving information for all breast cancer patients in England. We will continue to build our relationships and communication with GPs, and maximise our existing relationships with key member organisations involved in delivering healthcare. We will work closely with local primary care organisations to provide support for GPs and practice nurses as part of the Touch Look Check TLC campaign. We aim to expand the reach of our publications, through developing a promotion plan for our information materials and through the National Cancer Information Pathways. We will ensure that more women have increased knowledge of breast cancer, from risk factors to treatment pathways, and are able to confidently access breast screening and breast cancer services as appropriate. 16 Trustees Report Trustees Report 17

10 MAKING A DIFFERENCE NOT JUST LIVING To update our finance system. Our existing software has been in use for over eight years, during which time our income has quadrupled. We selected a new finance system and started the implementation programme. We want the best people and infrastructure. We are determined to put in place the right infrastructure, recruit and retain the best people, making them feel involved and valued, and ensure our processes are simple and clear. This will help maximise the impact of our work for people affected by breast cancer, and ensure we act as responsible custodians for the funds and support so generously given. As a professional graphic designer, I was delighted to donate my time and skills. It means Breakthrough can save money, and I m involved in something really positive for me and women everywhere. Jessica Drury Breakthrough volunteer To start a Process Improvement initiative, to ensure that all that we do is as efficient and effective as possible. We initiated an outcomes-based approach for our new five-year strategy and improved the process for outcomes-based planning. We began to develop a framework for project management to increase accountability and improve interdependency management. We invested in the development of our managerial competencies and effective organisational leadership. We enhanced the efficiency of our recruitment procedures by utilising our online recruitment system igrasp. We also introduced psychometric profiling as a standard recruitment tool for all roles with line management responsibilities. We improved and streamlined our gift handling and information processes. Our aims Our achievements To improve volunteering opportunities. We maintained 97% uptime for our IT infrastructure during working hours. We introduced an internship programme and successfully placed three interns across Breakthrough. To review a number of staff benefits in order to ensure that our benefits portfolio remains appropriately competitive against those of comparable organisations. To improve our performance framework, our staff will have an appropriate appraisal and review of their performance. To enhance our training calendar and development programme taking into account individual personal development plans and team objectives. We introduced a Cash Health Plan, enhanced our further education policy, introduced long-service awards and removed the statutory eligibility criteria for flexible working requests. We introduced our new performance review framework, consisting of an annual performance appraisal, individual objectives, personal development plans and quarterly reviews for all staff. We received 92% of individuals performance appraisals in the first year of launching the programme. We ensured a greater synergy between individuals personal development plans and the skills-based training offered through our central training calendar. We carried out a second Senior Management Team 360 degree appraisal as well as launching a 12-month development programme for our Heads of Team. This included a 360 degree appraisal, collective and individual coaching, Myers Briggs Types Indicator profiling and various skills courses for all of our Heads. We invested in the development of our elected Staff Representatives. This included six sessions with an external employment lawyer, to provide the necessary employment law backdrop, in relation to our internal Human Resources (HR) policies and procedures, and the role of the Representatives in administering these alongside HR. We were proud to win the / Charity Times Award for HR Team of the Year. OUR NEXT STEPS We will develop and implement a compliance and assurance framework. We will complete implementation of the new finance system and Purchasing Guidelines. We will develop our Management Accountability and Project Management Framework. Through utilising the Breakthrough talent pool, we used the expertise of six individuals to undertake bespoke projects and activities with us. We will continue to work to ensure that our systems are maintained and improved, that our policies and procedures remain fit for purpose and that our staff are provided with appropriate training and development opportunities. We will maintain the staffing levels appropriate to the resources we have and the work we undertake. 18 Trustees Report Trustees Report 19

11 MONEY MATTERS To engage more charitable trusts and major givers in specifically funding the work of our new Research Units. We used the launch of two new Research Units to stimulate new major donor and high-level giving, and donations of 720,000 were received during the year specifically to fund this new work. The money we raise we spend achieving our vision of a future free from the fear of breast cancer. We rely almost entirely upon voluntary donations to fund our work. From individuals and groups to corporate partners and charitable trusts, we thank every single supporter for their generosity and commitment. Breast cancer is the ultimate equaliser. It affects everyone, irrespective of colour, creed or background. Therefore, it s something we all need to come together to fight by supporting Fashion Targets Breast Cancer. June Sarpong face of Fashion Targets Breast Cancer To refocus the Fashion Targets Breast Cancer campaign to retain and attract the support of fashion retailers and increase the income raised. To inject new energy into our key campaigns, such as the 1,000 Challenge, Pink Your Party and Crocus Walks, to ensure that they remain powerful opportunities for fundraising, and attractive to existing and new supporters. We successfully expanded the campaign into a number of new retail partners and generated a total income of 1.2 million. We did not succeed in this area as planned and income across all three campaigns was lower than expected. Our aims Our achievements To raise 18 million to fund the work that we need to do. We raised 16.3 million (made up of 15.2 million voluntary income and 1.1 million investment income). To strengthen areas of our fundraising to provide greater certainty of income in the future, while continuing to develop our existing partnerships and volunteer and fundraiser networks. We have continued to invest in areas of fundraising activity that can deliver more predictable income. Our direct marketing income, through which supporters commit to a regular donation, grew by 21% to 1.45 million. Our corporate partners raised 5.1 million and our volunteer and fundraiser networks raised 5.9 million. During the year, we opened our Edinburgh office and now have a permanent fundraising team, maximising the opportunity to develop new supporters in Scotland. To meet any shortfalls in income due to the recession we built contingencies into our planning, where possible, and will continue to rely upon the extraordinary commitment and generosity of our supporters. The impact of the economic downturn was not fully predicted and, in the event, there were few contingency options available to us to seek to recover the lost income in other areas of our fundraising. To develop new and cost-effective methods for recruiting new supporters, with a target of 7,000 new individual donors. We tested a number of new ways to attract and recruit new supporters resulting in 10,321 new donors by Direct Debit and Payroll Giving. 20 Trustees Report 21

12 OUR NEXT STEPS Our target is to raise 17.4 million in /2010. We will continue to invest in the development of our more predictable income streams. Our Scotland office will increase our ability to fundraise from all types of supporters based there. We will develop our activity reporting, so we have the best possible chance of foreseeing drops in income. We will continue to prioritise those sources of income that offer good net return and high predictability. We plan to recruit 10,700 new Direct Debit and Payroll Giving donors in /2010. We will continue to explore options for funding specific themes and types of work, including our third new Research Unit and in influencing and education areas, such as improving breast services and increasing breast awareness. We will continue to expand the range of products for sale under the Fashion Targets Breast Cancer brand, by working with existing and new retail partners, while also expanding the campaign into new areas of support. We will relaunch the 1,000 Challenge with a campaign focused around the recruitment of new Challengers. We will evaluate our Go Pink and Crocus Walk campaigns with a view to achieving the best possible return in future years. We will continue to strengthen and extend our partnerships with the major companies who support our work. We will establish new agreements for corporate support, through engaging companies with our Breast Cancer Awareness Month and Fashion Targets Breast Cancer campaigns. STRUCTURE AND GOVERNANCE Organisational structure The trustees have legal responsibility for the strategic direction and effective governance of the charity. The trustees, also being directors of the company, who served during the year to 31 July are listed on page 51. On average, the board meets six times per year. Trustees recruitment, appointment, induction and training Breakthrough currently has 12 trustees. Together they provide the broad range of skills and expertise that the trustees want represented to ensure a strong board these include scientific backgrounds, strategic thinking, financial and organisational management, HR skills and marketing. In addition, many of the trustees have personal experience of the impact of breast cancer on people s lives and so are empathetic towards the goals of the charity. New trustees are recruited by a procedure that includes external advertising. They are selected to meet a clear person specification and to fill any specific skill gaps that have been identified. Chief Executive The Chief Executive is responsible for the dayto-day management of the charity s affairs and for the implementation of policies agreed by the board. The Chief Executive is assisted by the Senior Management Team, staff and volunteers. The board approves the delegation of financial authority through the Chief Executive to the charity, with specific limits imposed within an approved scheme of delegation. Board delegation The board delegates the exercise of certain powers in connection with the management and administration of the charity, with regular reporting to the board ensuring that all decisions made under these powers can be ratified by the full board in due course. The Remuneration, Nomination and Executive Appointments Committee is composed of senior trustees. It makes recommendations to the board on governance arrangements, prospective senior appointments (including trustees and the Chief Executive) and on Breakthrough Fellows. The committee also approves the pay of senior managers. Each year the trustees review the skills and expertise of the board (both individually and collectively); the information gained from this audit informs both the person specification for the appointment of any new trustees and the board training programme for the year. Breakthrough has a well-established induction programme for new trustees; this includes one-toone meetings with the Chief Executive, members of the Senior Management Team and the Company Secretary. New trustees also receive an induction pack of key documents ahead of their first trustee meeting, and are given the opportunity to immerse themselves in various elements of our work. There is an annual board development session, and shorter development and training sessions are included in the board programme throughout the year. The Investment Committee reports to the board and is made up of independent professionals and trustees. It meets at least twice a year to review investment practice and performance. The committee sets objectives, benchmarks and measurement time frame for the Investment Managers. The Science Committee is made up principally of trustees who have scientific and clinical expertise. It provides advice to the board on scientific issues and makes decisions as appropriate when specific matters are delegated to it by the Board of Trustees. The Science Committee normally meets about five times a year and considers advice from Breakthrough s independent scientific committees, including the Scientific Advisory Committee, which have expertise specifically relevant to the research under consideration. These independent committees provide advice about ongoing research programmes and new grant applications received through Breakthrough s specific funding streams. The committees receive advice and comments from independent scientists and clinicians from around the world through a process called peer review. 22 Trustees Report Trustees Report 23

13 Such independent experts carry out an assessment of grant applications submitted to Breakthrough, reviewing a number of criteria such as scientific quality, merit, calibre of investigators and relevance to breast cancer. The Scientific Advisory Committee is made up of independent scientific and clinical experts from around the world. There are currently eight members on the committee. The role of the committee is to provide independent expert advice to the Board of Trustees on Breakthrough s research portfolio. The committee carries out quinquennial (five-yearly) reviews of the Breakthrough Research Centre. The second review took place in. A separately constituted Review Committee also carried out a quinquennial review of the Breakthrough Generations Study in. The committees consider research progress and future plans, rating the overall quality within specific categories, such as outstanding and internationally competitive. Risk The trustees have reviewed the major risks to which Breakthrough is exposed and are satisfied that appropriate systems have been established to manage those risks. The trustees are also satisfied that the organisation has proven processes for dealing with unforeseeable risks. During the year, Breakthrough followed a risk assessment process through which it reviewed the major foreseeable risks faced by the organisation, assessed their likely impact and, where appropriate, implemented or improved measures to manage those risks. The principal risks and uncertainties faced by the charity are those shared by many similar organisations and are set out in our risk map. These risks are categorised under the headings Reputational, Operational, Strategic, Commercial, Competitive, Contractual, Financial, Managerial, Property, Regulatory, Technological, Scientific, Specific, Natural or Third Party, and Governance. The Risk Management Committee has also identified a smaller number of Key Risks aligned to the Strategic Priorities for These risks, the controls in place and any specific actions needed to manage the risks will be reviewed by the Senior Management Team as part of their regular monitoring of the charity s activities, and reported on bi-annually to the committee. The detailed operational risks and their controls will in future be reviewed by Directors and Heads of Departments who will formalise an appropriate assurance framework in /2010. In the light of these changes to the charity s risk assessment process, the Risk Management Committee recommended a change in its terms of reference to include the responsibility for reviewing the control environment of the charity, requesting reports from management on compliance with internal controls, material breaches and actions taken. The changes, together with a change of name to Risk and Assurance Committee, were approved by the Board in September. Grant making We have established our grant making policy to achieve our objectives for the public benefit, to improve the lives of people affected by breast cancer through increased understanding of the disease and its causes benefiting patients now as well as those who may be affected in the future. The Terms and Conditions of all Breakthrough grants include a requirement that the results of the research are disseminated in the usual manner, for example by publication and presentation at meetings. It is also a condition of award that principal investigators submit copies of publications arising from Breakthrough funded research as soon as accepted for publication to ensure that Breakthrough is kept fully informed of all results in the public domain. Any benefit received by researchers and research institutions is purely incidental to our research aims. Grants for the Breakthrough Research Centre are awarded on an annual basis, approved by the trustees in consultation with the Scientific Advisory Committee. Applications for additional funding for new teams within the Centre are scrutinised by peer review to international standards. Grants for the Breakthrough Generations Study are approved on a five-yearly basis, subject to satisfactory progress reports and achievement of project milestones in each year. Five-year grants for Research Units and clinical researchers are made following international peer review and scrutiny by a panel of independent experts. Annual renewal of funding is subject to demonstration of satisfactory progress. The trustees make other grants, when suitable opportunities arise, to further Breakthrough s research strategy, where these arise, from the work of our core funded programmes, such as clinical trials, or where specific areas of importance have been identified. Funding for such grants is considered through a competitive process involving an independent panel of experts and peer review. Relationship between the charity and its subsidiaries Breakthrough Breast Cancer has three wholly owned subsidiary undertakings registered in England and Wales, the results of which are consolidated in these financial statements. They are: Breakthrough Promotions Limited is Breakthrough s general trading company which carries out sale of Christmas cards and gifts by mail order, raffles, licensing of the brand for commercial promotions and conferences. In addition, the company is the owner of the rights to, and operator of, the Fashion Targets Breast Cancer campaign in the UK and runs this major fundraising campaign each year. Breakthrough Trading Events Limited and Breakthrough Enterprises Limited are both completing activities started in previous financial years, or early in the year under report. Future activities will be carried out by Breakthrough Promotions Limited. Breakthrough also holds an associated undertaking in Pink Ribbon Limited, a company registered in England and Wales. The company was dormant during the financial year. All profits of the subsidiaries are donated to the charity under Gift Aid rules within nine months of the year-end. 24 Trustees Report 25

14 HOW WE RAISED AND SPENT YOUR MONEY These are some of the ways we work to ensure our financial stability and at the same time maximise our effectiveness as a charity whose mission is to improve and save lives of people affected by breast cancer through research, campaigning and education. Income / Expenditure / / 16.3m / 18.6m Supporter community fundraising, events and campaigns 5.9m Research (including grant management costs) 7.6m Corporate partnerships 5.1m Cost of generating income 6.3m Individual donations 2.8m Education and influencing 4.6m Trusts 0.8m Governance costs 0.1m Legacies 0.1m Total 18.6m Sale of goods 0.5m Investments 1.1m Total 16.3m 26 Financial Review Financial Review 27

15 FINANCIAL REVIEW Income and surplus available for charitable expenditure /09 m 2007/08 m Fundraising income Investment income Cost of generating income (6.3) (6.5) Surplus available for charitable expenditure Gross income dropped from the previous year by 21% mainly as a result of the economic downturn. The credit crunch climate over the past year has led to a decline in income from our community and corporate supporters, and from our events and campaigns. We have held no large centrally organised events in the last 12 months in contrast to the previous year when we raised 2.2 million from two major events. We will consider returning to such events when the timing is right. Recognising the need to develop sustainable income streams Breakthrough has successfully developed regular giving and as a result there has been a year on year growth of 44% from this income stream. Costs associated with fundraising are down by 4% on 2007/, reflecting the need to balance increased investment in regular giving against the need to be careful about our costs. Fundraising income Charitable expenditure Summary / m Supporter community fundraising, events and campaigns Research (including grant management costs) 2007/ m /09 m /09 m 2007/08 m Corporate partnerships Individual donations Trusts Legacies Sale of goods /08 m Total charitable expenditure was 12.2 million. Research expenditure was 2.9 million less than planned. The trustees believe that we should focus on maintaining our ability to support our main commitments, including the Breakthrough Research Centre, the Research Units and the Breakthrough Generations Study. No appointments were made to the Clinical Researcher Programme. Other reductions were made at the new Manchester Unit and the number of new projects funded has been reduced. Educating, policy development and influencing at national and local levels remain key elements of our work. Year on year there has been an increase of 0.4 million reflecting increased expenditure on projects such as Touch Look Check TLC and the extension of the Service Pledge. Result At the end of / before unrealised investment movements and investment provision we have a deficit of 2.3 million against a budgeted deficit of 4.6 million. Early warning of the shortfall in income compared with the amount budgeted enabled us to reduce expenditure in a number of areas. A provision of 1.75 million has been made in the / accounts against funds held with Kaupthing Singer and Friedlander (KSF). This reflects the administrator s latest estimate of the amount recoverable from KSF. See note 14 for more details. Reserves There was a net decrease of 5 million in Breakthrough s overall reserves to 15.5 million. Reserves are assigned to general, designated and restricted as follows: Funds balances /09 m General funds 4.0 Designated funds Research 7.3 Investment gains designated fund 3.0 Fixed assets fund 0.2 Total designated funds 10.5 Restricted funds 1.0 Total funds at 31 July 15.5 Our policy on reserves is set out in note 1.5 to the financial statements and further details on funds are given in note 17. The trustees confirm that there are adequate assets to meet any liabilities on a fund by fund basis. Investment income was down by 35% on 2007/ reflecting materially lower interest rates and dividend payments as well as reduced current investment holdings. Education, policy and influencing Total charitable expenditure / /08 Research grants and research grants management / /08 62% 65% Unrealised investment losses of 1.2 million in 2007/ have reduced to 0.9 million at the end of /. The net movement in funds for the year to 31 July was 5 million. After a transfer to designated reserves to help fund future expenditure our general funds balance is 4 million. This is within the planned range of our policy to ensure that we have a minimum reserve covering between four and six months forecast non-grant expenditure. / has proved a challenging year for Breakthrough and to reflect this there has been an extensive review of income and costs. The budget for /2010 reflects mild confidence, anticipating income growth to 17.4 million. Costs reflect a reduced number of employees but continued commitment to our long-term strategy. In /2010 we expect a net deficit of 1.3 million. Our five-year strategy has included a projection of our income and charitable spend over that period. We plan to utilise some of our reserves over that period which will reduce them to a minimum reserves level defined as our general funds plus fixed asset and investment funds. Education, policy and influencing 38% 35% 28 Financial Review Financial Review 29

16 FINANCIAL REVIEW continued Investments Total investments at 31 July amounted to 24.1 million, a decrease of 7.3 million, mainly in current asset investments. Our long-term investments have not changed materially; the market value of equity and bonds investments at the year-end was 12.7 million, only 0.3 million less than 2007/ and, as noted above, markets at the end of the year were not significantly lower than in. We have paid out nearly 2 million more in actual grant payments than in the previous year and this, together with the loss for the year and the 1.75 million KSF provision (see note 14), accounts for the decrease in our current investment holdings. Breakthrough holds investments in accordance with the investment policy approved by the trustees and within the powers set out in the Memorandum and Articles of Association of the Charity. Breakthrough seeks to maximise the returns on investments within the specific requirements of its investment policy and has a moderate attitude to risk with a desire for a balanced portfolio. The minimum grade of investment held directly is grade A. Breakthrough does not invest in companies that actively trade in tobacco products, derive more than 3% of turnover from production or more than 10% of turnover from sale or distribution of tobacco-related products. Breakthrough matches the type of investment to the underlying creditor or reserve in order to make efficient use of reserves and to ensure that funds are available to meet its grant payment obligations. All investments relating to short-term creditors are held in cash while the remaining investments relating to longer term creditors and reserves are held in a mix of cash, bonds (medium-term) and equities (long-term). The investment mix was 30% equities ( 7.2 million), 23% bonds ( 5.5 million) and 47% cash ( 11.4 million). Further details of investment movements and performance are given in notes 12 and 14 to the accounts. Fixed assets Movements in the value of tangible fixed assets during the year are shown in note 11. Financial statements The charity s consolidated financial statements are set out on pages 32 to 50, including the results of the charity s trading subsidiaries. They are all wholly owned by Breakthrough and registered in England and Wales. Details are included in note 16 to the financial statements. Breakthrough Breast Cancer, Breast Cancer Care and Breast Cancer Campaign incorporated a limited company under the name of Pink Ribbon Limited for joint trading activities in relation to Pink Ribbon. The organisations own equal shares in the company and there are currently no proposals for any trading or activity by the company. Further details are given in note 12. The financial results of the charity s regional groups are included within the consolidated results as they operate within the same charity registration and are governed by Breakthrough Breast Cancer s regional group constitution. The financial statements are prepared in accordance with the charity s governing documents, applicable accounting standards, the Companies Act 2006 and the Statement of Recommended Practice on Accounting and Reporting by Charities issued in March Statement of trustees responsibilities The trustees, who are also the directors for the purpose of company law, are responsible for preparing the Report of the Board of Trustees and the financial statements in accordance with applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law. Under company law the trustees 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 charity and the group, and of the surplus or deficit of the group for that period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently; make judgments and estimates that are reasonable and prudent; state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for ensuring that adequate accounting records are maintained that are sufficient to show and explain the charity s and the group s transactions, and disclose with reasonable accuracy at any time the financial position of the charity and the group, and which enable them to ensure that the financial statements comply with the Companies Act They are also responsible for safeguarding the assets of the charity and the group, and ensuring their proper application in accordance with charity law, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Audit information So far as each of the trustees is aware at the time the trustees report is approved: a) there is no relevant information of which the auditors are unaware; and b) they have taken all relevant steps they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. Auditors Following a tender process, our previous auditors Kingston Smith LLP resigned on 16 June confirming that there were no matters which should be drawn to the attention of the Members. Horwath Clark Whitehill LLP having been appointed by the Board during the year have indicated their willingness to continue in office and in accordance with the provisions of the Companies Act 2006 it is proposed that they be reappointed auditors for the ensuing year. Approved and signed on behalf of the Board of Trustees Stephanie Monk Chairman 19 November Duncan Smith Honorary Treasurer 30 Financial Review Financial Review 31

17 Consolidated Statement of Financial Activities for the year ended 31 July Balance Sheets as at 31 July Incoming resources Incoming resources from generated funds Note Unrestricted funds Restricted funds Voluntary income 2 7,096 3,634 10,730 12,710 Other activities for generating funds 2 3, ,892 5,650 Sale of goods Investment income 3 1,116 1,116 1,750 Total incoming resources 12,637 3,645 16,282 20,759 Costs of generating funds Fundraising costs 4 6,059 6,059 5,969 Costs of sale of goods Investment management costs Total costs of generating funds 6,267 6,267 6,527 Net incoming resources available for charitable activities 6,370 3,645 10,015 14,232 Total Total Fixed assets Note Group Charity Tangible assets Investments 12 12,720 13,037 12,720 13,037 Current assets 12,911 13,227 12,911 13,227 Debtors 13 3,762 4,417 5,284 7,803 Investments 14 11,363 18,377 11,363 18,377 Cash at bank and in hand 2,702 1,574 2,681 1,533 17,827 24,368 19,328 27,713 Creditors: amounts falling due within one year 15(a) 13,848 14,490 15,364 17,852 Net current assets 3,979 9,878 3,964 9,861 Total assets less current liabilities 16,890 23,105 16,875 23,088 Creditors: amounts falling due after more than one year 15(b) 1,383 2,613 1,383 2,613 Net assets 15,507 20,492 15,492 20,475 Charitable activities Research grants and research grants management 6 4,548 3,090 7,638 7,780 Education, policy and influencing 4, ,555 4,177 Total charitable expenditure 9,096 3,097 12,193 11,957 Governance costs Total resources expended 7 15,475 3,097 18,572 18,591 Net incoming/(outgoing) resources before transfers (2,838) 548 (2,290) 2,168 Transfers between funds 17 1,013 (1,013) Provision for loss on cash deposits 14 (1,750) (1,750) Net income/(expenditure) (3,575) (465) (4,040) 2,168 Unrealised (losses)/gains on investment assets 12 (945) (945) (1,180) Net movement in funds (4,520) (465) (4,985) 988 Total funds at 1 August 19,048 1,444 20,492 19,504 Total funds at 31 July 17 14, ,507 20,492 Funds 17 Unrestricted General 3,960 5,108 3,945 5,091 Designated 10,568 13,940 10,568 13,940 Restricted 979 1, ,444 Total funds 15,507 20,492 15,492 20,475 The financial statements were approved and authorised for issue by the Board on 19 November and signed on its behalf by Stephanie Monk Chairman Duncan Smith Honorary Treasurer The notes on pages 35 to 50 form part of these financial statements. All of the above results were from continuing activities and there were no gains or losses other than the above. The notes on pages 35 to 50 form part of these financial statements. Breakthrough Breast Cancer is a company limited by guarantee registered in England and Wales (No ), and a charity registered in England and Wales (No ) and Scotland (No. SC039058). 32 Consolidated Statement of Financial Activities Balance Sheets 33

18 Consolidated Cash Flow Statement for the year ended 31 July Notes to the Financial Statements for the year ended 31 July Cash flow Notes Net cash inflow/(outflow) from operating activities (a) (6,272) (2,290) Capital expenditure Purchase of fixed assets (104) (36) Disposal of fixed assets 2 Returns on investments and servicing of finance (102) (36) Interest received Investment income received Dividends and interest reinvested (682) (633) Investment fees deduction ,181 Management of liquid resources 7, Increase/(decrease) in cash in the year 1,128 (272) Reconciliation of net cash flow to movement in net funds Increase/(decrease) in cash in the year 1,128 (272) Increase/(decrease) in liquid resources (7,014) (873) Movement in net funds in the year (b) (5,886) (1,145) Notes to the cash flow statement (a) Reconciliation of outgoing resources before revaluations to net cash inflow from operating activities Net incoming/(outgoing) resources before revaluations (4,040) 2,168 Depreciation Investment income received (1,116) (1,750) (Increase)/Decrease in debtors 655 (901) (Decrease)/Increase in creditors (1,872) (1,941) Net cash inflow/(outflow) from operating activities (6,272) (2,290) (b) Analysis of changes in net funds At 1 August Cash flow At 31 July Cash at bank 1,574 1,128 2,702 Current asset investments 18,377 (7,014) 11,363 19,951 (5,886) 14, Accounting policies The principal accounting policies adopted are as follows: 1.1 Basis of accounting The financial statements are prepared under the historical cost convention, as modified by the inclusion of investments at market value, and in accordance with applicable accounting standards, the Companies Act 2006 and the Statement of Recommended Practice on Accounting and Reporting by Charities published in March Basis of consolidation The financial statements consolidate the financial statements of the charity and all its trading subsidiaries. The income and expenditure from trading subsidiaries is consolidated on a line by line basis on the face of the statement of financial activities. The charity has taken advantage of the exemption under paragraph 397 of the Charities SORP and has not included a separate income and expenditure account for the charity. The net result of the charity for the year was a deficit of 5 million (2007/: surplus 1 million). 1.3 Income Income is accounted for on a receivable basis to the extent that amounts are material and where there is a legal entitlement and the monetary value can be measured with sufficient certainty, or there is a pledge before the balance sheet date that has been honoured by the date of signing of the financial statements; with the exception of the income types below. The income of regional groups includes all transactions cleared on the regional group bank statements up to the year-end. Voluntary income includes all unsolicited donations and legacies, and income received in response to direct marketing appeals. Legacies are taken into account when capable of financial measurement; receipt is virtually certain and where there are no conditions that still need to be fulfilled before payment is made to us. Donations are included upon receipt, with related Gift Aid recognised when a claim is submitted to HMRC. Sale of goods for generating funds is accounted for at the date of invoice from the sale of tangible goods sold at specified retail prices excluding VAT. Income from other activities for generating funds, including all fundraising income not classified as voluntary income or sale of goods for generating funds, is accounted for on a receivable basis. Gifts in kind and donated goods and services are recognised in the accounts when the benefit to Breakthrough is reasonably quantifiable and measurable. The value is the price Breakthrough estimates it would pay should it purchase equivalent goods or services. 1.4 Expenditure Expenditure is accounted for on an accruals basis and attributed to the appropriate functional classifications within the statement of financial activities. Costs that cannot be directly attributed are allocated between charitable and other costs on a staff time basis. Costs relating to the sale of goods include the direct costs of purchasing and distributing goods for sale along with direct staff time and expenditure and allocated costs associated with selling the goods. Other fundraising costs include direct staff costs and expenses and allocated costs relating to all fundraising activities except sale of goods. Grants payable in furtherance of the charity s objects are the total amounts granted to external bodies for charitable work. The grants made by the trustees are recognised in the statement of financial activities in the year the grant is awarded and notified to the recipient, provided a legal or constructive commitment exists and any conditions attaching to the grant have been fulfilled by the recipient. They are disclosed within creditors according to the expected payment date of instalments. Details are given in notes 6 and 15. Research Grants Management costs in furtherance of the charity s objectives include direct staff costs and expenditure and allocated costs related to research activities. 34 Consolidated Cash Flow Statement Notes to the Financial Statements 35

19 Notes to the Financial Statements continued Education, Policy and Influencing costs in furtherance of the charity s objectives include direct staff costs and expenditure and allocated costs. Governance includes direct staff costs and expenditure and allocated costs of the overall strategic management of the charity and its subsidiaries. 1.5 Funds General funds are the funds available excluding restricted and designated funds. We rely heavily on voluntary income, which inevitably fluctuates. In order to continue the day-to-day operations the trustees have approved a general reserves policy to hold funds equivalent to between four and six months of the non-grant expenditure forecast for the year ahead and have identified a minimum reserves level to be used when making long-term plans. Minimum reserves comprise general reserves, fixed assets and investment reserves. Reserves above this level are available for additional future charitable spend in addition to existing planned expenditure. Taking one year with another, our aim is to maintain minimum reserves. The trustees also wish to make a long-term impact with ongoing funding of top-quality research projects and therefore in order to provide security for future charitable activities, the trustees have approved a range of designated funds. Designated funds arise when the trustees set aside unrestricted funds for specific purposes. This gives a more accurate picture of the general funds available as a reserve against fluctuating income, or to spend on new activities. The trustees have designated a fund for future research expenditure. We aim to designate the equivalent of between six and 12 months of such expenditure. This is in addition to any commitments to the next year s grants that are already recognised in the accounts. The trustees have designated a separate fixed assets fund to represent the net book value of tangible assets used by the charity. The trustees have designated a separate investment gains fund to represent unrealised investment gains up to a maximum of 25% of the portfolio value. These unrealised gains could reverse and so are not available for immediate expenditure. They are shown separately from general funds. Restricted funds arise when conditions are imposed by the donor or by the specific terms of the appeal, and can only be spent on the activities specified. Further details are set out in note Tangible fixed assets and depreciation Tangible fixed assets are stated at cost, less depreciation. Assets of under 500 in value are not capitalised, but are taken fully as expenditure in the year of purchase. Depreciation is provided by the straight-line method, calculated to write off assets over their estimated useful lives at the following rates: Computers and IT software Fixtures, fittings and office equipment Leasehold improvements over 2 to 4 years over 2 to 5 years over 3 to 5 years 1.7 Valuation of investments Fixed asset investments are stated at the market value at the balance sheet date. Any realised or unrealised gains and losses are shown in the statement of financial activities. Current investments are shown at cost, less any provision for expected losses. 1.8 Value Added Tax VAT is only partially recoverable by the group and therefore the non-recoverable element is included with the expenditure on which the VAT was charged in the statement of financial activities. 1.9 Operating leases Rentals payable under operating leases are charged to the statement of financial activities on a straight-line basis over the lease term. Details are given in note Pensions Contributions payable to the defined contribution pension scheme (see note 10) are charged to the statement of financial activities in the year to which they relate. 2. Fundraising income Voluntary income Group Supporter community fundraising, events and campaigns 4,490 6,049 Corporate partnerships 2,527 3,076 Individual donations 2,766 2,172 Legacies Statutory funding 1 27 Trusts Statutory funding is a Section 64 grant from the Department of Health. Other activities for generating funds 10,730 12,710 Group Community fundraising Corporate royalties and sponsorship 2,579 2,824 Events and campaigns 820 2,349 Sale of goods 3,892 5,650 Group Pin badges T-shirts and other products Investment income Group Money market and bank deposit interest Dividend income and stock interest ,116 1, Notes to the Financial Statements Notes to the Financial Statements 37

20 Notes to the Financial Statements continued 4. Costs of generating funds 6. Grants awarded Fundraising costs Group Research Centre Group Supporter community fundraising, events and campaigns 2,113 2,849 Corporate partnerships, royalties and sponsorship 1,583 1,257 Individual donations 1,868 1,426 Trusts fundraising Fundraising management Costs of sale of goods 6,059 5,969 Group Pin badges 133 T-shirts and other products Costs of generating funds and the fundraising ratio Group Voluntary income and income from other fund-generating activities excluding sale of goods 15,738 20,110 Fundraising costs excluding sale of goods 6,113 6,033 Net fundraising income 9,625 14,077 Fundraising ratio 38.8% 30.0% Breakthrough Research Centre 5,852 5,091 Research Units Edinburgh 881 King's College London 100 Manchester Total Research Unit grants 1, Clinical Researcher grants Clinician Scientist Fellowship 30 Generations Study Breakthrough Generations Study grant 1,003 Other Intramural projects FGFR1 and HER2 316 IVIS (44) BCCOM Project (13) 59 ACU Fatigue 15 Total other grants (57) 390 Total grants payable 6,807 6,985 Grants Management Costs ,638 7,780 The first year of funding for the next phase of the Breakthrough Generations Study will be recognised in the following financial year. This is in line with our accounting policy. The 5,852k Research Centre grant includes 436k for the International Cancer Genome Consortium. 38 Notes to the Financial Statements Notes to the Financial Statements 39

21 Notes to the Financial Statements continued 7. Analysis of total resources expended Grants payable (note 6) Costs of goods sold Staff costs Allocated staff costs Allocated support costs Fundraising costs 1, ,845 6,059 Costs of sale of goods Investment management costs Costs of generating funds 1, ,045 6,267 Grants payable 6,807 6,807 Research grants management Education, policy and influencing 1, ,933 4,555 Governance costs Total expenditure 6,807 3, ,832 5,156 18,572 Total expenditure 6, , ,565 5,182 18,591 The analysis above includes support staff costs and general overheads. These are allocated to the different SOFA expenditure headings on a staff time basis and are made up of the following costs: Staff costs Rent and rates VAT costs Depreciation Training, recruitment and HR team costs Office operating costs Other direct costs Total 2,735 2, Staff Remuneration of staff totalled: Salaries 4,097 3,982 Temporary staff agency fees Social security costs Pension costs The average number of persons employed by the charity and its subsidiaries during the year was (125 in ). The average numbers of staff analysed by expenditure heading were: 4,777 4,636 Number Number Fundraising Sale of goods 3 6 Research Education, policy and influencing Governance In addition to directly employed staff, the charity s grants fund the salaries of 110 scientific staff in our research programmes (95 in 2007/). The number of employees receiving remuneration of over 60,000 for the year was as follows: Net incoming/(outgoing) resources are stated after charging: Auditors' remuneration audit fees fees for other services 2 Depreciation Operating leases property Number Number 60,001 to 70, ,001 to 80, ,001 to 110, Pension costs for these higher paid employees amounted to 20k (2007/: 17k). 40 Notes to the Financial Statements Notes to the Financial Statements 41

22 Notes to the Financial Statements continued 9. Trustees Breakthrough s trustees (who are also the company directors) are all voluntary and received nil remuneration during the year (nil in 2007/). Six trustees (three in 2007/) received reimbursement for travel and accommodation expenses of 3,537 during the year (2007/ 1,578). Further information about trustees is included in note Pensions The charity operates a group personal pension scheme, the assets of which are held in independently administered funds. The charity contributes by matching employee contributions to their personal pension to a maximum of 5% of gross salary. The charity s contributions to the scheme amounted to 113k during the year (2007/: 112k). 11. Tangible fixed assets group and charity Cost Leasehold improvements Computers and IT software Fixtures, fittings and office equipment At 1 August Additions Disposals (2) (2) As at 31 July Accumulated depreciation At 1 August Charge for this year As at 31 July Total 12. Fixed asset investments group and charity Investments Market value at 1 August 13,037 13,648 Investment fees deducted (54) (64) Dividends and interest reinvested Net unrealised investment losses (945) (1,180) Market value at 31 July 12,720 13,037 Cost at 1 August 12,721 12,152 Fees deducted, dividends and interest reinvested Cost at 31 July 13,349 12,721 The charity's investment in its subsidiaries is 103. Breakthrough also holds an investment of 20 for a one-third share in Pink Ribbon Limited. The other two-thirds share is held by Breast Cancer Care and Breast Cancer Campaign. All investment assets are held in the UK and are unrestricted. The holdings by fund on a market value basis are as follows: Fund Asset class Fund manager Market value Charishare Tobacco Restricted CIF Equities BlackRock 7,181 7,670 Charinco CIF Fixed interest BlackRock 1,371 1,548 Charibond CIF Fixed interest M&G 4,168 3,819 Total market value 12,720 13,037 Net book values Brought forward at 1 August Carried forward at 31 July There are no assets held under finance leases in /. Our largest portfolio is held with BlackRock Investment Managers and is invested in the Charishare (equity) and Charinco (fixed interest) funds. No new cash was added to the portfolio in /. The total fund value was 8.6 million at 31 July, a decrease of 7% from last year. Performance is measured on a rolling three-year basis, with the aim of achieving total returns that exceed by 1% the composite benchmark of 20% Government All Stocks Index + 80% FTSE All Share Index (excluding Tobacco and Investment Trusts). At 31 July the portfolio exceeded its benchmark by 1.2%, a negative return of 1.4% against a negative return of the index of 2.6%. Breakthrough holds an M&G Charibond fixed interest fund as part of its medium-term investments and to diversify the portfolio across more than one fund manager. No new cash was added to the fund in /. Performance is measured on a rolling three-year basis, with the aim of achieving total returns that exceed by 1% the benchmark of the Government All Stocks Index. At 31 July the portfolio benchmark per annum over three years was 4.8% against 5.3% for the Government All Stocks Index. 42 Notes to the Financial Statements Notes to the Financial Statements 43

23 Notes to the Financial Statements continued 13. Debtors 15. Creditors (continued) Group Charity Research Centre grants Research Unit grants Clinical Researcher grants Other grants Total grants Total grants Trade debtors 1,057 1, Gift Aid due from subsidiary undertakings 2,450 4,696 Other debtors 1,129 1,144 1,121 1,084 Prepayments other Accrued income 1,469 1,709 1,469 1,255 Other amounts due from subsidiary undertakings 141 3,762 4,417 5,284 7,803 Analysis of grants creditor due Outstanding grants at 1 August 8,770 1, ,412 15,972 16,767 Grants awarded during the year (note 6) 5,852 1,012 (57) 6,807 6,985 Payments made during the year (5,753) (1,676) (125) (1,579) (9,133) (7,780) Outstanding grants at 31 July 8,869 1, ,776 13,646 15,972 Represented by: Falling due within one year 8,869 1, ,995 12,263 13,359 Falling due after more than one year ,383 2, Current investments group and charity 8,869 1, ,776 13,646 15,972 Short-term cash instruments and deposits 11,363 18,377 Our largest cash portfolio is held with BlackRock, with a total value of 5.6 million at 31 July. Performance is measured on an annual basis with the aim of achieving income that exceeds the cumulative annual return of the three-month Sterling LIBID. At 31 July the portfolio exceeded its benchmark by 1.23% (0.27% against 1.5%). At 1 August the charity held 4,369k of short-term cash deposits with Kaupthing Singer and Friedlander (KSF). On 8 October the Financial Services Authority (FSA) applied to the High Court for KSF to be put into administration, as they concluded that it no longer met the FSA s threshold conditions. On 24 July the administrator paid 883k to the charity, leaving a balance of 3,486k at 31 July. The administrator s latest estimate is that between 60p and 75p in the will be recovered. Therefore the trustees have decided that a provision of 1,750k should be made based on a 60p in the recovery of the total deposit. 15. Creditors (a) Amounts falling due within one year Cost Group Charity Trade creditors Due to subsidiary undertakings 1,928 3,608 Grants (see below) 12,263 13,359 12,263 13,359 Other creditors and accruals Deferred Income Other Events Taxation and social security Subsidiary undertakings Breakthrough holds the entire ordinary share capital of three companies registered in England. The activities of Breakthrough Enterprises Limited, Breakthrough Trading Events Limited and Breakthrough Promotions Limited (as included in the consolidated statement of financial activities), and net assets at year-end are as follows: Incoming resources Breakthrough Enterprises Ltd Breakthrough Trading Events Ltd Breakthrough Promotions Ltd Sale of goods for generating funds Other activities for generating funds ,971 3,011 6,252 Total incoming resources ,014 3,054 6,658 Costs of generating funds Costs of sale of goods Other fundraising costs ,521 Total costs of generating funds ,952 Charitable costs (14) 1 (13) 10 Total resources expended (14) ,962 Profit available for Gift Aid ,400 2,450 4,696 Gift Aid (43) (7) (2,400) (2,450) (4,696) Retained profit for the year Net assets Total Total (b) Amounts falling due after more than one year 13,848 14,490 15,364 17,852 All staff are employed by the charity. Staff costs and other support costs borne by the charity are recharged to the subsidiaries on the basis of the proportion of staff time spent working on the activities of the subsidiaries. Grants 1,383 2,613 1,383 2, Notes to the Financial Statements Notes to the Financial Statements 45

24 Notes to the Financial Statements continued 17. Funds The movement of group funds classified in accordance with note 1.5 is as follows: Unrestricted funds Balance at 1 August Incoming resources Outgoing resources Investment (losses) Transfers Balance at 31 July General 1 5,108 12,126 (14,499) 1,225 3,960 Designated Research 2 10,492 (2,519) (625) 7,348 Avon Clinical Research Fellowships (207) Marks & Spencer (304) Fixed assets Investment gains/(losses) 6 3,260 (945) 714 3,029 Total designated funds 13, (2,726) (945) (212) 10,568 Total unrestricted funds 19,048 12,637 (17,225) (945) 1,013 14,528 Restricted funds Breakthrough Research Centre (490) Molecular Endocrinology Translational 307 (307) Research Team 8 Molecular Cell Biology Group (520) Molecular Pathology Group (322) Nina Barough Pathology Laboratory (193) Microarray Facility (459) Functional Analysis Group (20) Male Breast Cancer Study (10) Gene Function Laboratory (255) Breakthrough Research Unit, London (100) 422 Breakthrough Research Unit, Edinburgh (386) Breakthrough Research Unit, Manchester (31) 4 Breakthrough Generations Study (765) 319 Breakthrough Clinical Researcher Dr Kong (125) 30 Cancer Genome Project 21 7 (7) ACU Fatigue (105) 180 Fidelity-Research Grant Tracker 23 7 (7) Education Isle of Man DOH Section 64 grant 25 8 (7) (1) Breakthrough Service Pledge in Scotland Total restricted funds 1,444 3,645 (3,097) (1,013) 979 Total funds 20,492 16,282 (20,322) (945) 15,507 1 The General Fund represents an average of four months non-grant expenditure for the year ahead. This is in line with the reserves policy. 2 The trustees have designated a fund for future research expenditure. We aim to designate the equivalent of between six and 12 months of such expenditure. This is in addition to any commitments to the next year s grant that is already recognised in the accounts. This is in line with the reserves policy. 3 Avon Cosmetics contributed funds in / to cover the costs of the Avon Clinical Research Fellowships at the Breakthrough Breast Cancer Research Centre. Three clinical fellows are in place and five fellowships have been funded overall. 4 Marks & Spencer contributed towards the initial costs of preparing Breakthrough Generations Study case-control data and samples for analysis. This involved the preparation of DNA samples and questionnaire data for analysis ( 145k), and included the purchase of a Liquid Handling Robot and associated costs ( 159k) which is used to handle DNA samples for large-scale genetic association studies. The grant funds expenditure that was recognised in the accounts of earlier years. The transfer to general funds sets the grant received against that expenditure. 5 The trustees have designated a separate fixed asset fund to represent the net book value of tangible assets used by the charity. 6 The trustees have designated a separate investment fund to represent unrealised investment gains or losses up to a maximum of 25% of the portfolio value. These gains or losses could reverse and so are not available for immediate expenditure. They are shown separately from general funds. 7 Funds raised by Breakthrough Challengers have been used to fund activities at the Breakthrough Research Centre. 8 A donation from the Mary-Jean Mitchell Green Foundation is funding two teams (led by Professor Mitch Dowsett) that focus on hormone-sensitive breast cancer: the Molecular Endocrinology Team at our Research Centre and the Translational Research Team based at the Royal Marsden Hospital. 9 Sylvie Henry and Danielle Leslie from Future Dreams raised 275k towards the Molecular Cell Biology Group (led by Professor Clare Isacke). Their efforts were matched by Walk the Walk, which contributed 245k. 10 Walk the Walk contributed 300k towards the work of the Molecular Pathology Group (led by Dr Jorge Reis-Filho) at the Breakthrough Research Centre. Additional support for this team was received from the Sydney and Phyllis Goldberg Memorial Charitable Trust and the Alice Ellen Cooper-Dean Charitable Foundation. 11 Walk the Walk covered the entire costs of the work that takes place at the Nina Barough Pathology Laboratory, which is based at the Royal Marsden Hospital and is named after Walk the Walk s founder. 12 Walk the Walk also covered the full costs of the Microarray Facility at the Breakthrough Research Centre. 13 The Isle of Man Anti-Cancer Association made a donation in celebration of their 50 th Anniversary this year, which has been used to help fund the work of the Functional Analysis Group (led by Professor Alan Ashworth and Dr Chris Lord) at the Breakthrough Research Centre. 14 The George John and Sheilah Livanos Charitable Trust made a donation to help fund The Male Breast Cancer Study (led by Professor Anthony Swerdlow), which aims to help us understand more about what causes breast cancer in men. The grant funds expenditure that was recognised in the accounts of earlier years. The transfer to unrestricted funds sets the grant received against that expenditure. 46 Notes to the Financial Statements Notes to the Financial Statements 47

25 Notes to the Financial Statements continued 15 Walk the Walk has contributed 255k towards the work of the Gene Function Laboratory (led by Professor Alan Ashworth). Walk the Walk donated an overall total of 1,452,631 during the year. 16 Donations towards the Breakthrough Research Unit in London include 181k received into The Sarah Greene Breakthrough Tribute Fund during the year. Of this 168k has been put towards a research fellowship held by Dr Elodie Noel at the Breakthrough Research Unit, London. The remaining 13k is being put towards a new Clinical Research Fellowship which Sarah s family and friends are now raising monies towards. The Pink Power Walk raised 161k to help fund the work of the London Unit, along with donations from The Band Trust, the Philip King Charitable Trust and the Mason le Page Charitable Trust. 17 A gift from Charles and Ruth Plowden of 321k including Gift Aid helped launch our efforts to raise money for the work of our new Breakthrough Research Unit in Edinburgh. Many other gifts were received during the year from individuals, charitable trusts, companies, schools, community groups and churches. In total 375k was donated towards our research taking place in Edinburgh. 18 Mr Albert Gubay made a donation to the Breakthrough Research Unit in Manchester which has paid for the / costs of the unit, alongside a donation received within the year from the Enid Slater Charitable Settlement. 19 The Lennox and Wyfold Foundation made their fourth and final donation of 250k towards the set up and running costs of the first 10 years of The Breakthrough Generations Study. Along side this, The Sir John Fisher Foundation made their third annual donation in support of a PhD student who is performing initial analysis on data provided by participants who have signed up to the Study. A number of individuals also made donations during the year. The grant funds expenditure that was recognised in the accounts of earlier years. The transfer to unrestricted funds sets the grant received against that expenditure. 20 The Holbeck Charitable Trust has agreed to co-fund the Breakthrough Clinical Researcher Programme over five years. The annual contribution of this Trust along with a gift from the Tolkien Trust has been used to help fund the costs of Dr Anthony Kong at the University of Oxford, who started his fellowship on 1 September. The grant funds expenditure that was recognised in the accounts of earlier years. The transfer to unrestricted funds sets the grant received against that expenditure. 21 A contribution of 7,000 helped to pay for Breakthrough s involvement in the International Cancer Genome Consortium (ICGC) project which will sequence the entire genome of a triple negative breast tumour. 22 Walk the Walk is funding the full costs of the ACU Fatigue complementary therapy study over a period of three years. The grant funds expenditure that was recognised in the accounts of earlier years. The transfer to unrestricted funds sets the grant received against that expenditure. 23 A grant from a foundation has funded Breakthrough s Grant Tracker Database, which is an investment in technology that will support the efficient and effective growth and development of our world-class research portfolio. The grant funds expenditure that was recognised in the accounts of earlier years. The transfer to unrestricted funds sets the grant received against that expenditure. 24 Jennifer Haigh donated 10,000 to fund Breakthrough s breast cancer education and awareness work on the Isle of Man from 2006 to The Department of Health (DOH) Section 64 have provided a grant towards our education work focusing on improving breast cancer awareness in women aged over 50. The grant funds expenditure that was recognised in the accounts of earlier years. The transfer to unrestricted funds sets the grant received against that expenditure. 26 The Service Pledge in Scotland is made possible through funding from the Samsung Breast Cancer Initiative of the Susan G. Komen for the Cure Global Promise Fund. 18. Fund balances at 31 July are represented by: Unrestricted funds Restricted funds Tangible fixed assets Fixed asset investments 12,720 12,720 13,037 Net current assets 3, ,979 9,878 Creditors falling due after more than one year (1,383) (1,383) (2,613) Net assets 14, ,507 20, Financial and other commitments Obligations under operating leases Future commitments for operating leases existing at the year-end were as follows: Property leases expiring: Within one year 358 Within two to five years 537 Equipment leases expiring: Within one year Within two to five years Total Total 48 Notes to the Financial Statements Notes to the Financial Statements 49

26 Notes to the Financial Statements continued Legal and administrative details for the year ended 31 July 20. Share capital The charity has no issued shared capital being a company limited by guarantee. There were 12 members (:13) at 31 July. 21. Taxation Breakthrough is a registered charity and its activities fall within the exemptions under the Income and Corporation Taxes Act Contingent liability There were no contingent liabilities. 23. Related party transactions In accordance with FRS 8, the charity discloses related party transactions that were recognised in the statement of financial activities. During the year one Breakthrough trustee was associated with The Institute of Cancer Research, Professor Robin Weiss is a Fellow of the Institute. The total of grants awarded to The Institute was as follows: The Institute of Cancer Research 5,852 6,094 There were no outstanding balances due from related parties at the year-end. Charity details Patron HRH the Prince of Wales Board of Trustees Members of the Board during the year and at the time of signing the report were: Stephanie Monk CBE FIPD Chairman Professor Hilary Thomas PhD FRCR Vice Chairman (from 19 November ) Duncan Smith FCA BSc Honorary Treasurer Judy Atchison BA(Econ) Jan Brooks MBE MA Professor Sir Martin Evans MA(Cam) PhD(Lon) DSc(Cam) DSc(Hon Mt Sinai MS) FRS FMedSci Sarah Illingworth MVA Susan Johnson BA(Hons) Peter Keemer MPhil Caroline Mawhood BSc(Soc) CPFA Professor Dame Lesley H. Rees DBE MD DSc FRCP FRCPath FMedSci Evelyn Smith LLB(Hons) (until 19 November and Vice Chairman until that date) Professor Irving Taylor MD ChM FRCS FMedSci FRCPS(Glas) Hon (until 19 November ) Professor Robert A. Weiss FRCPath Hon FRCP FRS FMedSci Chief Executive Jeremy Hughes MA(Oxon) Senior Management Team Jeremy Hughes (Chief Executive) Maggie Alexander (Policy and Campaigns) Chris Askew (Fundraising) Audrey Birt (Scotland) Jane Crumpton-Taylor (Resources and Planning) Dr Norman Freshney (Research Management) Fiona Hazell (Marketing and Communications) Company Secretary Jennifer Burley BA(Hons) Solicitor Auditors Horwath Clark Whitehill LLP St Bride s House 10 Salisbury Square London EC4Y 8EH Bankers Co-operative Bank plc 9 Prescot Street London E1 8BE HSBC Bank plc 16 King Street Covent Garden WC2E 8JF Investment Managers BlackRock Investment Managers 33 King William Street London EC4R 9AS M&G Investments Governors House Laurence Pountney Hill London EC4R 0HH Registered Office Weston House 246 High Holborn London WC1V 7EX Tel: breakthrough.org.uk Office in Scotland 3rd Floor 38 Thistle Street Edinburgh EH2 1EN Breakthrough Breast Cancer is a company limited by guarantee registered in England and Wales (No ), and a charity registered in England and Wales (No ) and Scotland (No. SC039058). Its governing documents are its Memorandum and Articles of Association. 50 Notes to the Financial Statements Legal and Administrative Details 51

27 Legal and administrative details continued Research Centre The Breakthrough Toby Robins Breast Cancer Research Centre Mary-Jean Mitchell Green Building The Institute of Cancer Research 237 Fulham Road London SW3 6JB Director: Professor Alan Ashworth FRS Research Units Manchester Breast Centre & Breakthrough Breast Cancer Research Unit Paterson Institute for Cancer Research Wilmslow Road Manchester M20 4BX Director: Professor Anthony Howell Breakthrough Breast Cancer Research Unit Edinburgh Cancer Research Centre University of Edinburgh Western General Hospital Crewe Road Edinburgh EH4 2XU Director: Professor David Harrison Breakthrough Breast Cancer Research Unit King s College London School of Medicine Guy s Hospital London SE1 9RT Director: Dr Andrew Tutt Breakthrough Honorary Fellows Angela Caplan Dr Mike Crumpton PhD CBE FmedSci FRCPath FRS Lord Davies of Abersoch CBE Bill Freedman Kay Glendinning MBE Peter Green Baroness Morgan of Drefelin Professor Gerald Westbury OBE FRCP FRCS HonFRCSEd Investment Committee Duncan Smith FCA BSc Chair Peter Keemer MPhil Caroline Mawhood BSc(Soc) CPFA Ian Sims BSc (alternate with Keith Lloyd from 30 June ) Keith Lloyd MSc CFA (alternate with Ian Sims from 30 June ) Anne Wade BA(Hons) (to 18 November ) Caroline Randall MA (from 19 November ) Remuneration, Nomination and Executive Appointments Committee Stephanie Monk CBE FIPD Chair Judy Atchison BA(Econ) Professor Hilary Thomas PhD FRCR Duncan Smith FCA BSc Risk Management and Assurance Committee Sarah Illingworth MVA Chair Peter Keemer MPhil Professor Hilary Thomas PhD FRCR Science Committee Professor Sir Martin Evans MA(Cam) PhD(Lon) DSc(Cam) DSc(Hon Mt Sinai MS) FRS FMedSci Chair Professor Robert A. Weiss FRCPath Hon FRCP FRS FMedSci Professor Dame Lesley H. Rees DBE MD DSc FRCP FRCPath FMedSci Professor Trevor J. Powles CBE PhD FRCP Sarah Illingworth MVA Scientific Advisory Committee Professor Nancy Hynes Chair (appointed November 2007) Professor René Bernards Professor Mina Bissell Professor Adrian Harris MD ChB FMedSci Professor Nicholas Hastie CBE FRS FRSE FMedSci Professor C. Kent Osborne MD Professor Marc van de Vijver MD Professor Karen Vousden CBE FRS FMedSci Breakthrough s Governance is supported by advisory panels: Influencing and Advisory Panel Hilary Thomas Chair Professor Angela Coulter Nick Partridge Karen Jennings Dr Adrienne Morgan Nikki West Dr Stephen Parsons Penka Nikolova Scotland Advisory Panel Ruth Plowden Chair Barry Gusterson Alistair Thompson Sue Cruickshank Noelle O-Rourke David Harrison CAN Advisory Group Susan Johnson Chair Charlotte Wright Kathy Caldwell Celia Webber Elaine Ellison Penka Nikolova Pam Allinson Ursula Van Mann 52 Legal and Administrative Details Legal and Administrative Details 53

28 Independent Auditor s report to the Members of Breakthrough Breast Cancer for the year ended 31 July Independent Auditor s Report to the Members of Breakthrough Breast Cancer We have audited the group and parent company financial statements of Breakthrough Breast Cancer for the year ended 31 July which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Company Balance Sheets, the Consolidated Cash Flow Statement and the related notes numbered 1 to 23. These financial statements have been prepared in accordance with the accounting policies set out therein. This report is made solely to the charitable company s members, as a body, in accordance with Sections 495 and 496 of the Companies Act 2006 and to the charity s trustees, as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act Our audit work has been undertaken so that we might state to the charitable 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 charitable 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 trustees and auditors The trustees (who are also the directors of Breakthrough Breast Cancer for the purpose of company law) responsibilities for preparing the Report of the Board of Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and for being satisfied that the financial statements give a true and fair view are set out in the Statement of Trustees Responsibilities. We have been appointed auditors under the Companies Act 2006 and under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report to you in accordance with those Acts. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (United Kingdom and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice and have been prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations We also report to you if in our opinion the information given in the Report of the Board of Trustees is not consistent with the financial statements. In addition, we report to you if, in our opinion, the charitable company has not kept adequate accounting records, if the charity s financial statements are not in agreement with those records, if we have not received all the information and explanations we require for our audit or if certain disclosures of trustees remuneration specified by law are not made. We read other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. The other information comprises only the Report of the Board of Trustees. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the consolidated financial statements. Our responsibilities do not extend to other information. Basis of opinion We conducted our audit in accordance with International Standards on Auditing (United Kingdom and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the charitable company s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. Opinion In our opinion: the financial statements give a true and fair view of the affairs of the group and the parent company as at 31 July and of the group s incoming resources and application of resources, including its income and expenditure, for the year then ended; the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; the financial statements have been prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006; and the information given in the Report of the Board of Trustees is consistent with the financial statements. Sally Kirby Senior Statutory Auditor for and on behalf of Horwath Clark Whitehill LLP Chartered Accountants and Statutory Auditor Horwath Clark Whitehill LLP is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 St Bride s House 10 Salisbury Square London EC4Y 8EH 3 December 54 Independent Auditor s Report to the Members of Breakthrough Breast Cancer Independent Auditor s Report to the Members of Breakthrough Breast Cancer 55

29 With thanks We rely upon the support we receive from organisations and individuals who so generously give us their time and/or money to support our work, and we would like to pay special thanks to the following individuals and organisations. Our research Breakthrough Scientific Advisory Committee: Professor Nancy E. Hynes (Chair); Professor René Bernards; Professor Mina J. Bissell; Professor Adrian L. Harris; Professor Nick Hastie; Professor C. Kent Osborne; Professor Marc van de Vijver; Professor Karen Vousden; and Dr Crispin Miller. Breakthrough Clinical Researcher Committee: Professor Stan Kaye (Chair); Professor Robert Brown; Professor Peter Barrett-Lee; Professor Nicholas Lemoine; and Professor Per Lønning. Breakthrough Intramural Research Committee: Professor Francis Balkwill (Chair); Professor Iain McNeish; and Professor Ian Tomlinson. Breakthrough Generations Study Advisory Committee and Oversight Body: Professor Flora van Leeuwen; Professor Leslie Bernstein; Professor Tim Bishop; Jonathan Kipling; Professor Keith Willison; Professor David Phillips; Professor Robin Weiss; Jan Brooks; Amanda Jones; and Eve Smith. Breakthrough Generations Study Site Visit Committee: Professor Sir Nicholas Wald (Chair); Professor Per Hall; Professor Tim Bishop; and Professor Gareth Evans. Other Committees: Professor David Forman; Dr Seeromanie Harding; Professor Ann Carroll Klassen; Professor Trevor Dale; and Professor J. Louise Jones. Breakthrough is very grateful for the time and expertise committed by the scientific and clinical experts that it consults during the peer review process. Our policy, education and influencing Over 1,200 members of the Campaigns & Advocacy Network (CAN), and the CAN Advisory Group; Pam Allinson; Dorothy Head; Pat Fairbrother; Shirley Garman; Maureen Lubert; Jean McGregor; Penka Nikolova; Caroline Sharpe; Ursula Van Mann; Maggie Wilcox; Charlotte Wright; Elaine Ellison; Celia Webber; and Kathy Caldwell. Members of the CAN Training Advisory Group: Charlotte Wright; Mary Jennings; Pip Gallop; Ann Davis; Alison Walker; Ursula Van Mann; Sandra Kilpatrick; and Gilly Burn. Members of the Genetics Advisory Panel: Charlotte Wright; Rachel Seddon; Oonagh Wilson; Ayesha Owusu-Barnaby; Kerry Andrews; Joan Nicholson; Gill Marsh; Alison Attard; Maria Boyle; Lorraine Massey; Celia Webber; and Jackie Goodridge. All members of the Genetics Reference Group and members of our Clinical Experts Reference Group, many other clinical and scientific experts and CAN members from across the UK who have informed our work, assisted in developing our information materials and helped to inform our response to consultations on issues relevant to those affected by breast cancer, including: Andrew Baildam; Nicola Bamford; Charlotte Beardmore; Dr Lucy Brazil; Dr Peter Canney; Dawn Chapman; Dr Suzy Cleator; Professor Jack Cuzick; Professor J. Michael Dixon; Dr Rosalind Eeles; Dr Paul Ellis; Dr Jacqueline Filshie; Dr Brian Fisher; Professor W. D. George; Ms Sheila Goff; Mrs Lis Grimsey; Vickki Harmer; Dr Michelle Harvie; Elaine Heaney; Professor Shirley Hodgson; Kate Howie; Dr Ian Kunkler; Barbara Langdale; Professor Tom Lennard; Professor George Lewith; Dr Diana M. Lightfoot; Dr Jane Lothian; Dr James Mackay; Dr Jane Maher; Dr Jo Marsden; Dr Mike Michell; Mrs Jan Morrison; Professor David Peters; Professor Arnie Purushotham; Dr Gita Ralleigh; Richard Sainsbury; Dr Carmel Sheppard; Dr Margaret Spittle; Dr Amanda Sutton; Dawn Symonds; Dr Andy Tutt; Professor Leslie G. Walker; Nicola West; and Philippa Whitford. The members of the Project Advisory Group for our pilot breast awareness project: Lisa Cohen; Ray Lowry; Douglas Eadie; Rita Brophy; Maggie Luck; Rosy Price; and Rosalind Tatham. The Scottish Advisory Panel: Ruth Plowden (Chair); Professor Barry Gusterson; Dr Noelle O Rourke; Sue Cruickshank; Professor Alastair Thompson; and Professor David Harrison. The healthcare professionals and experts who volunteered their time to assist in the development of our Touch Look Check TLC message: Rosy Price; and Marigold Gunther. Professor Mike Richards and the Department of Health Cancer Policy Team and NHS National Cancer Action Team. The Scottish Government Cancer Strategy team. The officers of the All-Party Parliamentary Group on Breast Cancer: Annette Brooke MP; Ann Cryer MP; Anne Milton MP; Baroness Morris of Bolton; and Sharon Hodgson MP. MPs, MSPs and Peers who have supported Breakthrough s campaigning work, including: John Baron MP; Kevin Barron MP; Ben Bradshaw MP; Rhona Brankin MSP; Malcolm Chisholm MSP; Jim Dobbin MP; Barry Gardiner MP; Paul Goodman MP, Michael Gove MP; Patricia Hewitt MP; Michael Jack MP; Alan Johnson MP; Ann Keen MP; Norman Lamb MP; John Leech MP; David Lidington MP; Anne Main MP; Doug Naysmith MP; Mike O Brien MP; Mike Penning MP; Shona Robison MSP; Mark Simmonds MP; Nicola Sturgeon MSP; and Nicholas Winterton MP. Service Pledge Leads including: Terry Jemison, Castle Hill Hospital; Dawn Symonds, Buckinghamshire Hospitals; Julie Calcuth, Kim Collingridge, Ipswich Hospital; Susan Merry, Royal Surrey County Hospital; Nicky Turner, Grantham Hospital; Jo Divver, Jennifer Hinchcliffe, Lincoln Hospital; Doreen Macaskill-Refaat, Linda Fisher, Pilgrim Hospital; Clare Sullivan, The Harley Street Clinic; Sue Ledden, Andrea Ward, Sue Baker, Scarborough General Hospital; Louise Sadler, Judith Curtis, Friarage Hospital; Nikki West, Karen Wingfield, University Hospital of Wales; Diane Jehu, Tanya Ball, Prince Charles Hospital; Ruth Harcourt, Sandra Griffith, Norfolk and Norwich University Hospital; Natashia Cedeno, Hazel Ricard, West Middlesex Hospital; Alison Allen, Barnsley Hospital; Anne Brember, Basingstoke and North Hampshire Hospital; Susan Richmond, Frimley Park Hospital; Nichola Van der Ploeg, Macclesfield District General Hospital; Nicola Probert, Countess of Chester Hospital; Jayne Hughes, Worthing Hospital; Angela Nicholson, Bristol Royal Infirmary; Jane Barker, Frenchay Hospital; Judith Reeves, Musgrove Park Hospital; and Claire Garnell, Weston General Hospital. Organisations who have supported and advised on policy and campaigning work: The Lymphoedema Support Network; International Lymphoedema Framework; Macmillan Cancer Support; Breast Cancer Care; Breast Cancer Campaign; Genetics Interest Group; Scottish Lymphoedema Practitioners Group; British Association of Surgical Oncology; British Oncological Association; Royal College of GPs; Institute of Cancer Research; Royal College of Nursing; East of Scotland Breast Care Nurses; Royal College of Nursing Scotland; Cancer Network Directors; Age Concern/Help the Aged (England, Wales, Scotland); Citizens Advice; University of the Third Age (Ashtead, Aughton and Ormskirk, Barmouth; Bridgenorth and District, Burnham on Sea; Burnley, East Lothian); Maggie s Centres (Fife and Edinburgh); Inner Wheel; Soroptimist International; Crescent Resource Centre (Lower Earley, Reading); Breast Cancer Care Scotland. Our corporate partnerships In particular we would like to acknowledge and thank Marks & Spencer and Avon Cosmetics. Their long-term commitment to the Breakthrough Generations Study and the Avon Clinical Research Fellowship programme are vital parts of our fight against breast cancer. The contribution from ghd and hair salons nationwide increased on last year, and we were also fortunate to continue to work in partnership with: adidas; Warehouse; River Island; Hamelin Paperbrands; MBNA Europe Bank Limited; and Solus Garden & Leisure, all of whom have supported us for a number of years. We are delighted to welcome Samsung as a new long-term partner and are proud to be the UK member of the Susan G. Komen for the Cure Global Promise Fund. Our revitalised Fashion Targets Breast Cancer campaign received support from a range of new and existing partners, including: Marks & Spencer; Posterscope; Coast; Top Shop; Warehouse; Laura Ashley; my-wardrobe.com; and Goodone, and we thank them for their valued contributions. We would also like to thank: AstraZeneca; Brunchettas; Evans; H Samuel; Lands End; Novartis; Paperchase; Pfizer; Raleigh; Roche; Smeg; Taylors Bulbs; The Pier; The White Company; and Vileda, for their valued support. 56 With Thanks With Thanks 57

30 With thanks continued Our trusts and foundations We are grateful to those who made a gift towards to a specific project, as detailed in note 17 on page 48. We would also like to acknowledge: The BM Black Charitable Trust; The Natalie Naylor Trust Fund; Gerald Micklem Charitable Trust; Chapman Charitable Trust; Coutts Charitable Trust; The Martin Connell Charitable Trust; G M Morrison Charitable Trust; Mrs Hilda Beer Charitable Trust; James Pilditch Charitable Trust; Madeline Mabey Trust; Mr and Mrs J A Pye s Charitable Settlement; Sharegift; Simon Langton Lodge Benevolent Fund; Spurrell Charitable Trust; Sue Hammerson Charitable Trust; The Maclay Murray and Spens Charitable Trust; The James Wood Bequest Fund; The George & Margaret Trotter Charitable Trust; Forth Breast Cancer Care Group; Miss Agnes H Hunter Charitable Trust; The Ronald Cruickshanks Foundation; Martin Currie Charitable Foundation; and The Hugh Fraser Foundation. Thanks go to the Samsung Breast Cancer Initiative of the Susan G. Komen for the Cure Global Promise Fund for supporting the Service Pledge in Scotland; to Future Dreams for supporting secondary breast cancer research; to the Mary-Jean Mitchell Green Foundation for supporting hormone-sensitive breast cancer research; to the Sarah Greene Breakthrough Tribute Fund for supporting a Fellowship at our new London Research Unit; and to the Marsden family, the Plowden family and the Tulloch family for supporting our new Edinburgh Research Unit. Thank you to Walk the Walk and in particular to all the thousands of people who took part in the Moon Walk this year. Your contributions supported five different breast cancer research teams. Our supporters Thank you to our 50 Breakthrough Groups and 70 local representatives. Their continued invaluable support helps to raise vital funds and awareness of Breakthrough in their local communities. Thanks to the schools, clubs and community groups who have fundraised and increased Breakthrough s profile within their local area. The many dedicated supporters who in the past year have given their time, efforts and energy to organise or take part in a wide range of events, or who have gone Pink, or made generous donations through the year. All of our incredible 1,000 Challengers, in particular we would like to acknowledge: Krissie Attridge; Carole Fletcher-Foale; Jo Hetherington; Natasha Holliday; Michael & Caroline Jefferson; Rosina Kelly; Deborah Krowlikowski and members of the Up Front Committee; Shirley Rutter; Sarah Softley; and Maria Stansfield. The Pink Power Walk Committee and their helpers for their ongoing support congratulations for their best year yet. Middlesex County Cricket Club; TVQuick and TVChoice Magazines; Prima Magazine; The Inspiration Awards; Three to Tango; Sing for the Cure; the Pure Beauty Awards; and the Ladies Golf Union, for supporting Breakthrough throughout the year. adidas; Running4Women; Chester Triathlon Club; and the London Marathon Limited for selecting Breakthrough as the preferred charity on a range of running events. A special acknowledgement in honour of the following supporters who kindly chose to leave a gift to Breakthrough in their Will: Thomas Tustin; George Jolly; Rotraud Fleming; Florence Culley; John Coulson; Ernest Reynish; Arthur Burch; Mrs Richmond-Smith; Sally Edmunds; Alice Baxter; June Turnbull; Susan Vernall; Edward Colclough; William Dagwell; Thomas Newton; Beatrice Ford; Irene Kinnison; Winifred Dagwell; Veronica Garbutt; Evelyn Starkey; Winifred Taylor; Albert Bartlett; Graham Ramsden; Rosalind Sarch; Joan Parish; Korah Benjamin; Brenda Moss; Jean Philpott. Our communications Thanks to everyone in the media for helping to spread the word about breast cancer, our work and helping with our fundraising. The many supporters who volunteered to take part in interviews and photoshoots with the media and all of our celebrity supporters for their work with us over the past year. Creative, media and advertising agencies, including: Posterscope; Viseum; and Apex Outdoor, and all individuals and organisations who gave time and expertise during our brand review. 58 With Thanks

31 Breakthrough Breast Cancer is a pioneering charity dedicated to the prevention, treatment and ultimate eradication of breast cancer. We believe passionately that this disease can be beaten. By fighting on three fronts research, campaigning and education we are determined to save and change lives by removing the fear of breast cancer for good. Breakthrough Breast Cancer Weston House 246 High Holborn London WC1V 7EX 38 Thistle Street Edinburgh EH2 1EN E T F breakthrough.org.uk Breakthrough Breast Cancer is a charity registered in England & Wales (No ) and Scotland (No. SC039058).