Report of the Press Syndicate for the year ended 30 April 2008

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

Executive Summary

• 2007-08 was a first class year for the Press with sales reaching £179.5 million. This represents another year of market-leading growth, at 11.8%.
• Operating net income rose yet again, though without the additional benefit of revenue from asset disposals.
• The Press has now achieved and exceeded its five-year plan objectives.
• Academic and Professional publishing recorded a strong performance in its books business and, yet again, in Journals.
• English Language Teaching continues to fulfil its promise as our highest-growth business across the globe, with universal recognition of and confidence in the Cambridge brand.
• Commonwealth Education markets have again performed well, but the UK market for both books and digital products is fragile, with inadequate state-sector funding.
• The Press continues to achieve recognition as a leader in the digital publishing sector, with its extensive range of online book packages, e-books, online journals, educational courseware, and mobile phone-based products.
• After its strong showing in 2007, the Printing business went into a slump in 2008, along with the whole UK industry. Reduced print volumes, customer uncertainties, and Eastern European competition are taking their toll, resulting in regular bankruptcies. Now, notwithstanding a year of impeccable service from our Confidential business, Cambridge Assessment has decided to explore new avenues for exam-paper production from 1 October 2008, which will inevitably have a serious impact on Cambridge Printing.
• A prudent decision to convert the equity investment portfolio progressively into cash enabled the Press to lock in considerable investment gains accumulated in recent years and to avoid the losses now being experienced in the turmoil of the financial markets.
• The funding deficit in the Press's post-retirement benefits has been aggravated by the inclusion of pensioners' medical benefits in the FRS17 calculation, but the Press is in a good position to deal with these problems in the long term.