Our finances (continued)
Subsidiaries and related parties
Activities in furtherance of our objectives Cancer Research Technology Ltd (CRT) is a wholly-owned subsidiary. Its principal activity is to hold, develop and exploit intellectual property rights arising from research funded by the Charity and others to ensure that any discoveries that could lead to new drugs, diagnostics or vaccines reach the clinic by the most effective development route. These activities help us ensure our findings are used to improve the lives of people with cancer. CRT had a satisfactory year, with revenues maintained at £33 million (2010: £33 million) including Charity grants to support the CRT Laboratories of £7 million (2010: £7 million), and a profit on ordinary activities of £2.2 million (2010: £2.5 million). CRT’s taxable profits are returned to the Charity as a Gift Aid payment. Any accounting profit above this is retained by CRT to support ongoing research.
Financial performance has been sound during the year, but it is unlikely that the current level of royalties from the flagship product, temozolomide, will be maintained as patents on the drug have started to expire. Based on the potential of other products in the most advanced stage of clinical development, the financial prospects for CRT are considered to be healthy in the longer term, although it could well be a challenging financial climate in the shorter term. CRT and its US subsidiary, CRT Inc, remain well placed to fulfil their aim to make sure publicly-funded research brings the maximum benefit to people with cancer.
The Beatson Institute for Cancer Research The Institute’s existing portfolio of activity and future plans are in complete alignment with the Charity’s research strategy. As a core funded Institute it has developed a distinct approach to support high quality science and world-class facilities. The Institute provides an outstanding environment to support the training and development of basic and clinical scientists. In addition, it has supported its partners at the University of Glasgow and the Beatson West of Scotland Cancer Centre to obtain recognition as the Cancer Research UK West of Scotland Cancer Centre. This will enable the partnership to deliver outstanding basic and translational research.
UKCMRI Ltd is a UK registered charity and limited company formed to manage the creation of UKCMRI (to be known as The Francis Crick Institute). Cancer Research UK owns 26.26% of UKCMRI Ltd alongside the other partners – the Medical Research Council, University College London, and the Wellcome Trust.
During the year, the four partners signed a Joint Venture Agreement, establishing UKCMRI as an independent charity. Prior to that, the four partners jointly owned UKCMRI Construction Ltd. Once UKCMRI Ltd had been established as an independent charity, UKCMRI Construction Ltd became a wholly-owned subsidiary of UKCMRI Ltd and the partners’ investment was transferred to UKCMRI Ltd.
The four partners have continued to provide working capital to fund the UKCMRI project during the year. Until UKCMRI Ltd became operational in February 2011, this was by means of a joint programme-related loan arrangement with UKCMRI Construction Limited. Subsequently the funding of the project has been by means of capital contributions leading to shares being issued by UKCMRI Ltd to the partners and a new loan facility agreement. Shares in UKCMRI Ltd have also been issued in respect of programme-related investment loans originally made to UKCMRI Construction Ltd.
Following approval by the Development Committee of the London Borough of Camden in December 2010, UKCMRI Construction Ltd successfully received formal notice of planning permission for the Institute building in March 2011.
The Gibb Research Fellowship Endowment Fund is a wholly-owned subsidiary. It supports four research fellows. The Fund has also agreed to grant fund an annual reward scheme promoted by Cancer Research UK to encourage and recognise those making outstanding contributions to cancer research, especially those showing promise for the future.
War on Cancer has awarded grants to various cancer research projects in the University of Leeds during the year. The bulk of its funds have now been spent in accordance with its financial strategy. War on Cancer was granted a uniting direction with Cancer Research UK on 1 December 2010 and is now shown as a restricted fund within the Cancer Research UK Charity accounts (see Note 26).
14 / Annual Report and Accounts / Our finances
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