Report of the Press Syndicate for the sixteen months ended 30 April 2006

The PRESS SYNDICATE beg leave to report to the Council as follows:

In order to bring its business year more closely into line with that of the University, so as to facilitate the inclusion of the University Press's financial statements in the University's Annual Report, the Press changed its year end from 31 December to 30 April, thereby creating a sixteen-month reporting period for this present Annual Report. The effect of this change is that comparison with previous years' business is made more difficult, not least because the period in question contains two January-April periods, which are traditionally the lowest periods in the Press's annual business cycle.

The Press Syndicate therefore recommend that interested readers consult the full Report and Accounts, which will be posted on the Press website at http://www.cambridge.org/annual/report/. A printed edition will be distributed to all subscribers to the Reporter.

An Executive Summary of the Annual Report follows.

Executive Summary

• The Press delivered record financial results, in terms of both gross revenues and net income. Total revenues for the sixteen-month accounting period reached £187.0m, while net income was £15.7m. A further actuarial gain of £12.3m in respect of the valuation of pension scheme liabilities gave a total net income of £28.0m, after transfers to the University of £2.4m.
• Measured over the last twelve months of the period (May 2005 - April 2006), revenues rose 10.4% to beat most competitors' performance, and operations yielded a surplus of £2.3m, continuing the four-year recovery trend.
• The stock markets yielded major gains, and the disposal of redundant land brought cash flow of £18.5m to the Press.
• The adoption of the FRS 17 accounting standard has had the effect of appearing to reduce the net asset value of the Press by £40.1m. A pension fund liability has existed for several years, but it was not previously recognized on the balance sheet. With the assistance of favourable stock market movements, the deficit was reduced to £25.2m by 30 April 2006. Although the Press currently has the capacity to deal with the accumulated deficit, exceptional steps have been taken to reduce the threat posed by future pension costs.
• Academic publications performed strongly, with the Learning products beginning to show the benefits of intensive investment.
• Cambridge Companions Online and the Historical Statistics of the United States herald a new era of electronic publishing by the Press.
• Following the end of the accounting period, Foundation Books was acquired and renamed Cambridge University Press India Pvt. Ltd; the Press's printing business won the Grand Prix for British printers; and the Press moved into a new Manhattan home at 32 Avenue of the Americas.