Annual review and accounts 2010 - 2011 (pdf) - GS1 UK

ANNUAL REVIEW
2010-2011

ANNUAL REVIEW
2010-2011
CONTENTS
3 Who we are
4 Chairman’s statement
5 Chief Executive’s statement
6 Stakeholder feedback
7 Directors’ review
8 Supervisory Board
10 Auditors’ report
11 Report of the Supervisory Board
13 Financial statements
14 Income and expenditure account
15 Balance sheet
16 Cash flow statement
17 Notes to the financial statements
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ANNUAL REVIEW
2010-2011
WHO WE ARE
GS1 UK is a not-for-profit organisation owned by its members.
We develop and implement global supply chain standards
to make it faster, cheaper and safer for our members to serve
their customers, regardless of where they are in the world.
The basis of our standards is the accurate identification of
items such as products, pallets and patients. We license
globally unique numbers so that organisations can identify
their items and develop global standards to help them share
accurate data with their trading partners.
We use our standards to develop solutions such as asset
tracking, master data management and hospital efficiency
which help tackle real issues in supply chains.
We also help our members implement GS1 standards
and solutions by providing a range of services including
consultancy, training and a data pool to enable them to share
accurate, up-to-date and trusted data.
GS1 UK was founded over 30 years ago and is one of 110 GS1
membership organisations that operate in over 150 countries
worldwide.
Throughout our existence, we have contributed to some of
the most important technological innovations in the world of
business. Today, in particular, we are helping organisations to
take advantage of the internet and mobile phone technology.
Total members by turnover
Membership growth
30,000
25,000
20,000
up to £0.5m
£0.5m to £1m
15,000
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
£1m to £10m
£10m to £50m
£50m to £100m
£100m to £250m
£250m to £500m
£500m to £1bn
Over £1bn
17,948
19,284
20,387
21,354
22,461
24,328
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ANNUAL REVIEW
2010-2011
CHAIRMAN’S
STATEMENT
JAMES SPITTLE
We began 2010/2011 with an ambitious three year plan to
provide our growing membership with the tools they need
to compete in an ever changing and challenging global
economy. I am very pleased to report that, after only one
year, we have made excellent progress with achieving our key
objectives. Our main achievements include:
• launching our new TrueSource service and attracting
over 600 users
• certifying 22 new solutions as part of our new Solution
Partner programme
• exceeding 50 sustainable healthcare implementations
• increasing customer satisfaction to 92%
• increasing our membership by 1,867 to 24,328
Fulfilling our ambition to be the trusted source of master
data
The launch of the TrueSource suite of services at the beginning
of 2011 was a major step towards GS1 UK’s ambition
to become the trusted source of master data in the UK.
TrueSource is a data management service that provides a tool
set for retailers and brand owners, to ensure their product data
is accurate, up-to-date and standardised across supply chains,
stores and online. The new service has attracted hundreds
of users and is increasingly becoming an integral part of our
members’ data management strategies.
Bringing members and Solution Partners together
GS1 UK also launched the Solution Partner programme to
make it much easier for our members to get the most from
our standards by helping them to implement solutions that
solve the problems they face in the supply chain. An important
component of the programme is GS1 UK’s accreditation
scheme, which provides a rigorous test of our Solution
Partners’ knowledge and understanding of GS1 standards.
GS1 UK members can now be confident that over 40 GS1
UK Solution Partners are qualified to offer advice on our
standards. We applied the same rigour to our new solutions
certification scheme so that members can be sure that our
Solution Partners consistently deploy GS1 standards correctly.
Building a sustainable healthcare community
Our influence in the healthcare sector grew in the last year and
we have made considerable progress with increasing GS1
standards implementation in the NHS. In June 2011,
the Department of Health announced that GS1
coding will be used throughout the NHS in
England
to improve
efficiency and
save millions in
procurement costs.
While almost all
NHS trusts have
signed up to
use GS1 standards,
many are
yet to take advantage of
them. The announcement was
one of many endorsements that helped us take the number of
sustainable healthcare implementations beyond 50 this year,
but more work needs to be done in this area.
Maintaining customer service excellence and balancing the
books
Despite the ambitious nature of the projects we began
during the year, we still maintained our focus on delivering
the highest possible levels of customer service and value
to our members. We have also continued to develop GS1
UK Online with the addition of new services such as a new
supplier community management tool and integration with
TrueSource.
The year, however, hasn’t been without its challenges.
Alongside a backdrop of economic uncertainty, we’ve
experienced a number of changes in personnel. However,
by streamlining our costs, we have managed to deliver our
reserves target and secure our status as a financially stable
organisation.
None of these achievements could have been made
without the hard work of our team and the guidance
of our Supervisory Board. Unfortunately, we will be
saying farewell to a number of Supervisory Board
members including Mike Coupe, Stefan Hesse,
Peter Jordan and Stewart Oades. I would like
to thank everyone for their contributions
and I look forward to further success in
2011/2012 which without doubt will
again be very challenging.
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Annual Review
ANNUAL REVIEW
10-11
2010-2011
Who we are
CHIEF EXECUTIVE’S
STATEMENT
GARY LYNCH
GS1 UK is entering year two of its three year strategic plan with a great deal of
confidence. Many of the programmes that we launched last year took us into
unchartered territory. With a year of experience behind us, we are now in a good position
to deliver excellent results against our key objectives.
Pushing ahead with our key programmes
TrueSource will continue to play an essential role in our ambitions to become the trusted source of master
data in the UK. Our intention is to expand the number of TrueSource services available to GS1 UK members to
enable them to exploit the full potential of GDS (Global Data Synchronisation) and meet the increasing demand for
trusted product information in an increasingly multi-channel world.
Now that the GS1 UK Solution Partner programme is firmly in place, we plan to increase the range of certified solutions
available to members, which provide them with tangible business benefits and deploy GS1 standards consistently
and correctly.
Helping drive efficiency in the healthcare sector
With the backing of the National Audit Office, the chief executive of the NHS and ministers, GS1 standards are now
centre stage in the Government’s efficiency drive. Nearly all NHS trusts in England have been allocated GS1 prefixes so
our focus will be on ensuring that an increasing number of them become sustainable implementations. We have plans
to help trusts understand the compelling business case of using GS1 standards in a host of hospital processes, including
bed management, medical record management, stock management, sterile services and pharmaceutical robots. We also
intend to take our case beyond England to Scotland, Wales and Northern Ireland.
Addressing the needs of industry and exceeding customer service expectations
It will continue to be our priority to help industry confront current and emerging challenges. Recent food safety scares
and the proliferation of counterfeit medicines, reveal some of the vulnerabilities in today’s supply chains. Through the
innovative use of universal standards, we plan to do more to help our members develop and implement innovative
solutions to address these issues.
As ever, we will also continue to seek ways to improve the quality of customer service we provide to all members,
from companies that come to us for unique numbers to ones that make use of our many services from onboarding
to consultancy. GS1 UK members can also expect more services online, which will make it easier for
them to ‘self service’ on all aspects of their membership.
Succeeding in difficult times
In common with our members, we have to be prepared for every eventuality in an uncertain
economic environment. Nonetheless, our plan this year is a plan for success and I am very
optimistic that we have the people and the determination to once again achieve our objectives
and deliver value to our members.
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ANNUAL REVIEW
2010-2011
‘‘
will significantly drive down costs through the
entire grocery supply chain.”
“In recent months it has been
extremely encouraging to
see a significant resurgence
in the uptake of GDS activity
in the UK. The excellent work undertaken
by GS1 UK in the Data Crunch report has
spurred on major grocery retailers, wholesalers
and food service operators to increase the
resources they put behind their GDS activities.
Unilever fully supports the work that goes into
driving the uptake of GDS in the UK and GS1
undoubtedly plays a critical role in this activity,
which will ultimately lead to efficiencies that
John MacFarlane, Customer Development
Operations Director, Unilever
STAKEHOLDER
FEEDBACK
‘‘
Tom Mercer, Managing Director Moma Foods Ltd
Dave Steele, Simple Earth
“GS1 were extremely helpful
in helping us to implement
TrueSource. They explained the
process clearly over the phone, without putting
any pressure on us, and then worked with us
to put it in place effectively. GS1’s patience and
helpfulness was a real breath of fresh air.”
customer service representative, I wish
all companies had staff like your company.”
service, very patient with me and
explained everything very clearly. Thank you!”
Tina Fox-Edwards, Arundell Arms Hotel
‘‘“Excellent
NHS cannot afford to continue paying different prices for the same products. The use of GS1 bar codes will help
the NHS to operate as more efficient procurement organisations, they will have greater visibility of their spend and see
how much they are paying for products compared to others. It’s a simple idea that could save the NHS millions. Most
importantly this is a vital opportunity to save money for reinvestment in front-line care at a time when the NHS needs
to make efficiency savings.
NHS has enormous buying power if it works consistently and GS1 bar coding is a key foundation block to improve it. The support that
GS1 UK has provided to the Department of Health in developing its approach has been very valuable and we are keen to continue that
working relationship in the future.”
Simon Burns MP, Health Minister
‘‘“The
‘‘ ‘‘
“GS1 UK made it easy for us to
“Over the last year, GS1 UK
make accurate and trusted product
has given us invaluable
support with our GDS project
information available to one of our
and they were instrumental
most important customers. The Service Delivery
in its success. The GS1 UK
team were extremely helpful throughout the process
Professional Services team bring unrivalled
technical and best practice knowledge
from getting us up to speed with using TrueSource
combined with excellent project management to assisting us with uploading our product catalogue
skills. It was a pleasure to work with a group of
experts that showed such enthusiasm for the
so it could be published via the GDSN (Global Data
project as well as flexibility when we introduced
new requirements. I look forward to working
with GS1 UK in the future and building on these
achievements.”
support when we need it.”
Richard Copperthwaite, IT Director, Tesco.com
Joanne Barker, TCS Foods
Synchronisation Network). It is very refreshing to deal
with people who are so patient and willing to provide
6

Annual ANNUAL Review REVIEW
10-11
2010-2011
Who we are
DIRECTORS’
REVIEW
ALASTER PURCHASE
Chief Operating Officer
2010/11 was a tough challenge for us
and our members, but I am really pleased
with our great achievements during the
year. GS1 UK Online was launched (our
new website and members portal) at the
beginning of the year and was very well
received by our members. The new site
has encouraged 30% more members to use the members portal, 60%
more members to use the online tools and reduced calls for web help
by over 50%.
We also launched the new TrueSource service in January and by the
year end had over 600 members using the service and 100 members
take up global data synchronisation. Behind everything we do, we
are keen to provide service excellence and I am pleased that we have
achieved 92% across our six measures. However, with the aspiration of
‘one click or call and your query is dealt with professionally and with
certainty’, we have an opportunity to improve.
DAVE CRAPNELL
Finance & IS Director
In an extremely testing economic
environment, it is very pleasing that
GS1 UK was able to achieve its financial
targets in the last year. As a membership
organisation, it is vital that we continue
to offer value for money and to this
end we will continue to look at ways to
increase the efficiency of our internal processes so we can minimise
our cost base.
In the last two years, we have invested heavily in our information
systems to support both the development of our online services
and our strategic objective to become the trusted source of master
data in the UK. This investment provides us with a sound base from
which to develop more new services in 2011/12. The next year will
undoubtedly be another challenging one, but I believe we are well
placed to maintain our sustainable financial position.
SIMON PITMAN
Business Development
Director
Despite the underlying economic
conditions, there have been many
noteworthy successes over the last 12
months. These include the Department
of Health’s decision on the adoption
of GS1 standards, the growth of our
membership to a record high and the clear message from our
members that accurate data is now becoming imperative. The
challenge for GS1 UK is to continue to drive the adoption of standards
in all our members’ communities and help all trading partners to gain
tangible benefits from them.
Our focus will be to look forward as we implement our strategy
for the coming year. GS1 UK will continue to adapt to changing
markets, for instance, by focusing on helping businesses deliver
accurate consumer-centric data. It’s vital that we continue to deliver
excellent support and services and strive to develop a fuller sense of
community amongst our members. With the significant growth of
the Solution Partner programme, we will aim to deliver class leading
solutions that allow our members to seamlessly adopt and adapt to
our standards.
ANDREW OSBORNE
Chief Technical Officer
In the past year, the GS1 System has
been better documented and, as a
consequence, better understood.
This gives us further confidence that
the whole system is cohesive and its
component parts are interoperable. We
implemented an improved process for
standards development to provide assurance that new GS1 standards
address genuine business needs and that the different parts of the
system are consistent.
Global standards are being developed to enable sharing of data
between businesses and consumers and to support the exchange
of sustainability data. These developments reflect and reinforce
projects we are pursuing in the UK and show that we influence the
global agenda. GS1 UK is also paying increased attention to integrity
of standards implementation, for example, through our certified
solutions scheme. We will need to keep working with members to
ensure that our standards are used as intended and divergence is
avoided.
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ANNUAL REVIEW
2010-2011
SUPERVISORY
BOARD
JAMES SPITTLE
CHAIRMAN
James has 30 years of experience in
retailing, manufacturing and supply chain
management. He’s worked for DSGI,
Whitbread, Kingfisher and Tesco.
He is currently the chairman of G-ILs and
of the trustees of CAN, Vice President and
Council Board Member for the Chartered
Institute of Logistics and Transport and
an Advisory Board Member at Cranfield
University Supply Chain and Logistics.
STEFAN HESSE
Vice Chairman
Stefan has over 15 years of experience in
the retail and wholesale sector and has
worked in several organisations within
METRO GROUP, including Metro Cash &
Carry International, Metro Bulgaria, Metro
Romania and Makro The Netherlands.
In 2003, Stefan became Corporate Financial
Controller of METRO GROUP at its German
headquarters. He has been Finance
Director of Makro Cash & Carry UK with
additional responsibilities for supply chain
management and IT since 2005. Stefan is
about to leave METRO GROUP to take up a
new assignment.
Richard
Copperthwaite
Richard is IT Director at Tesco.com and
is responsible for IT delivery across the
grocery and non-food e-commerce
businesses. Before joining Tesco.com, he
was UK IT Director for Head Office functions
at Tesco PLC.
Richard has worked with many leading
retailers in an IT and operations career
spanning 22 years and specialises in nonfood,
logistics and the challenges of fast
moving, high growth operations.
Mike Coupe
Mike is the Group Commercial Director
at Sainsbury’s and is responsible for the
Trading, Marketing, IT and Online divisions.
He has been a member of the Sainsbury’s
Operating Board since 2004 and became an
Executive Director in 2007.
Mike joined Sainsbury’s from Big Food
Group where he was a board director and
managing director of Iceland Food Stores.
He has previously worked for both ASDA
and Tesco, where he had a variety of senior
management roles. Mike is also on the
board of ECR Europe and a non-executive
director of Greene King plc.
Marcus Dunsmore
Marcus is the Customer Service & Logistics
Director for Kraft, UK&I.
His career to date has spanned the supply chain
with senior leadership roles in manufacturing,
logistics and customer service working initially
for Unilever, then Cadbury and latterly Kraft Foods.
After Kraft acquired Cadbury, Marcus was
appointed into his current role where he is
responsible for delivering the integration of
Cadbury and Kraft UK operations as well as
leading Kraft’s UK&I customer service and
logistics activities.
In addition to his non-executive director role at
GS1 UK, he is also a member of the ECR Supply
Chain Board.
Lawrence Hutter
For over 20 years, Lawrence has worked
with many of the world’s best-known global
consumer products manufacturers on a wide
variety of strategic business performance
improvement initiatives across the food,
beverage, personal care, and household
products sectors.
He is a consulting strategy and operations
partner at Deloitte and focuses on commercial
excellence, pricing and customer profitability,
regulatory impacts on consumer markets and
end-to-end value chain optimisation. He also
leads Deloitte’s Consumer Business practice
globally. Lawrence is well known and highly
regarded throughout the consumer business
industry and is a frequent speaker at industry
conferences throughout the world.
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Annual Review
ANNUAL REVIEW
10-11
2010-2011
Who we are
SUPERVISORY
BOARD
Peter Jordan
Peter Jordan is CEO of Value Chain Vision,
a consultancy that looks at all aspects
of the FMCG future value chain. He
currently works as Industry Director for
the International Commerce Institute’s
Progressive Management Programme. Peter
was formerly Director of International B2B
Strategy for Kraft and worked in a number of
roles at Unilever.
Peter helped set up the board of the
Global Commerce Initiative and merge the
organisation into the Consumer Goods
Forum. He was formerly Vice President of
EAN International and has been a GS1 UK
Supervisory Board member for twenty one years.
Duncan Lennard
Duncan is responsible for corporate
business across the Brakes Group. He began
his career as an engineering trainee at
Unilever and progressed into a number of
cross functional roles in different parts of
the world including running manufacturing
plants, realigning the global R&D
programme and launching an ice cream
business in the Middle East.
He moved to Walkers as Vice President of
Supply Chain and then to Marketing at Coca
Cola to develop their juice drinks offering.
His innovative spirit saw him start, develop
and sell a multi-channel retail service
business that was the forerunner of current
internet trading platforms.
John Macfarlane
John is currently Customer Development
Operations Director for Unilever UK &
Ireland. He has held senior management
positions at Unilever in customer and
category development and has worked
closely with all the major UK retailers.
John is responsible for the GDS initiative
for Unilever UK, and for the development
of e-Business processes. His team works
closely with GS1 UK. They take part in the
DSG working groups and the UK Technical
Advisory Committee to help drive business
benefits through the adoption of global
standards.
Stewart Oades
Stewart is a non-executive director of
Palmer and Harvey plc and President of the
Freight Transport Association. He is also a
director and trustee of the charity Transaid.
Stewart was previously Chief Executive of
Christian Salvesen PLC, an executive board
director of Exel PLC and has held senior
contract and food logistics roles.
Lee Tate
Lee has held a number of board level positions
in a long career in the IT industry, including
Head of Management Services for the Financial
Times, Head of IT for the Government of Hong
Kong, and CEO of INS. He has been either a
chairman or a non-executive director of a
number of technology companies in both
Europe and the USA, in a wide variety of
industries.
Lee is the longest serving director and has
served on the Nominations Committee, the
Remuneration Committee, the Audit and Risk
Committee and the IT Steering Committee.
Chris Wilber
Chris is Director of Infrastructure for the NHS
and Department of Health Technology Office,
which provides technical advice and guidance
to the entire NHS.
He reports to the NHS and Department of
Health Chief Technology Officer, and his role
encompasses infrastructure security, identity
and access management, collaboration
systems, platform standards policies and
guidance and digital communications. A key
component of this portfolio is the promotion
of RFID and bar coding standards.
Before joining the NHS, Chris worked in the
telecommunications industry and worked for
many fixed and mobile network operators
and consultancies throughout the world.
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ANNUAL REVIEW
2010-2011
AUDITORS’ REPORT
Independent Auditors’ report to the
members of GS1 UK Limited
We have audited the financial statements of GS1 UK Limited for the year
ended June 2011 which comprise the Income and expenditure account,
the Balance sheet, the Cash flow statement, and the related notes. The
financial reporting framework that has been applied in their preparation
is applicable law and United Kingdom Accounting Standards (United
Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company’s members, as a body, in
accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our
audit work has been undertaken for no purpose other than to draw
to the attention of the company’s members those matters which
we are required to include in an auditors’ report addressed to them.
To the fullest extent permitted by law, we do not accept or assume
responsibility to any party other than the company and company’s
members as a body, for our work, for this report, or for the opinions we
have formed.
Respective responsibilities of Directors and Auditors
As explained more fully in the Directors’ Responsibilities Statement [set
out on page 11] the directors are responsible for the preparation of the
financial statements and for being satisfied that they give a true and
fair view. Our responsibility is to audit and express an opinion on the
financial statements in accordance with applicable law and International
Standards on Auditing (UK and Ireland). Those standards require us to
comply with the Auditing Practices Board’s (APB’s) Ethical Standards for
Auditors.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the
Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept, or returns
adequate for our audit have not been received from branches not
visited by us; or
• the financial statements are not in agreement with the accounting
records and returns; or
• certain disclosures of directors’ remuneration specified by law are
not made; or
• we have not received all the information and explanations we
require for our audit
Nicholas Brooks (Senior Statutory Auditor)
For and on behalf of Kingston Smith LLP, Statutory Auditor
6th September 2011
Devonshire House
60 Goswell Road
London EC1M 7AD
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and
disclosures in the financial statements sufficient to give reasonable
assurance that the financial statements are free from material
misstatement, whether caused by fraud or error. This includes an
assessment of: whether the accounting policies are appropriate to the
company’s circumstances and have been consistently applied and
adequately disclosed; the reasonableness of significant accounting
estimates made by the directors; and the overall presentation of the
financial statements. In addition we have read all the financial and
non-financial information in the Report of the Supervisory Board to
identify material inconsistencies with the audited financial statements.
If we become aware of any apparent material misstatements or
inconsistencies we consider the implications for our report.
Opinion on the financial statements
In our opinion the financial statements:
• give a true and fair view of the state of the company’s affairs as at
June 2011 and of its profit for the year then ended;
• have been properly prepared in accordance with United Kingdom
Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of the
Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for
the financial year for which the financial statements are prepared is
consistent with the financial statements.
1010

ANNUAL REVIEW
2010-2011
REPORT OF THE
SUPERVISORY BOARD
The Supervisory Board is pleased to submit its report and the audited
financial statements for the year ended 30th June 2011.
Principal activities
The principal activity of the company is to take the lead in developing,
promoting and establishing supply chain standards and best practice.
The company represents its membership, drawn from large companies
and small, across multiple business sectors, from both the public and
the private sectors. Its system for the identification of goods, services
and locations, and for related communications, is based on global
business-led standards agreed through GS1. The objective is to increase
the efficiency of trade and add value to the partners concerned and
to the consumer. We aim to make it faster, cheaper and safer for our
members to serve their customers. This is achieved by the industry wide
adoption of global GS1 standards and locally delivered services.
Business Review
The following business review has been provided by the Directors in
accordance with the Companies Act 2006.
GS1 UK’s strategic focus is underpinned by the following five key
objectives:
• To become the trusted source of master data in the UK
• To increase the deployment of GS1 solutions
• To build a sustainable healthcare community
• To ensure delivery and support excellence
• To maintain a sustainable financial model
The Supervisory Board uses a range of performance indicators to
monitor the performance against these objectives; the most important
are as follows:
2011 2010
Customer satisfaction (Target 91%) 92% 91%
Number of members at the year end
24,328 22,461
(Target 22,961)
Reserves (Target £2m) £2.14m £2.34m
The company made good progress in the first year of its 3 Year Strategic
Plan, achieving the targets it set against the above objectives. As
we enter the second year of the plan we have reaffirmed that these
objectives remain valid and an Operating Plan for 2011/12 in support of
these has been approved by the Supervisory Board.
Members of the Supervisory Board
The officers and elected members of the Supervisory Board are set out
on pages 8 and 9. In addition Gary Lynch, CEO, Dave Crapnell, Finance
and IS Director and Andrew Osborne, Staff Director are members of
the Supervisory Board. Members of the Supervisory Board are Directors
under the Companies Act 2006. The company is limited by guarantee
with each member undertaking to contribute up to £1 to the assets of
the company in the event of a winding up.
Statement of Directors’ responsibilities
The Directors are responsible for preparing the Directors’ Report
and the financial statements in accordance with applicable law and
regulations.
Company law requires the Directors to prepare financial statements
for each financial year. Under that law the Directors have elected to
prepare the financial statements in accordance with United Kingdom
Generally Accepted Accounting Practice (United Kingdom Accounting
Standards and applicable law). Under company law the Directors 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 company and of the
profit or loss of the company for that period. In preparing these financial
statements, the Directors are required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and accounting estimates that are reasonable
and prudent;
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the company will continue
in business.
The Directors are responsible for keeping adequate accounting records
that are sufficient to show and explain the company’s transactions and
disclose with reasonable accuracy at any time the financial position of
the company and enable them to ensure that the financial statements
comply with the Companies Act 2006. They are also responsible
for safeguarding the assets of the company and hence for taking
reasonable steps for the prevention and detection of fraud and other
irregularities.
Statement of disclosure to auditors
So far as each of the directors at the time the report is approved are
aware:
• there is no relevant audit information of which the auditors are
unaware and
• that they have taken all the 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.
Corporate Governance
The Board and Committees
At 30th June 2011 the Board comprised of ten non executive directors
(2010: eleven) plus the Chairman and one Vice Chairman. In addition
there were three executive directors (2010: three). The Board, which
meets on average five times a year, is responsible for the strategy and
overall performance of the company. Each Board meeting is preceded
by a clear agenda and any relevant information is provided to Directors
in advance of the meeting.
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ANNUAL REVIEW
2010-2011
REPORT OF THE
SUPERVISORY BOARD
Continued
Risk management and internal controls
Senior management are aware of their responsibility for managing risks
within the business. Risk is regularly reviewed at Board level to ensure
that risk management is being implemented and monitored effectively.
The Board policy is to ensure that the business is run effectively and
appropriately, bearing in mind the requirements for timely decision
making. Insurance policies are regularly reviewed to ensure these are
adequate and appropriate, in line with the nature, size and complexity
of the business. Through management reports, risks are highlighted and
monitored to identify potential business risk areas and to quantify and
address the risk wherever possible.
Key risks impacting the company include:
Recruitment and retention of quality staff
The company’s success is dependent on its ability to continue to retain
and recruit suitably qualified, high calibre staff. The Board actively
monitors retention rates, internal and external staff surveys and reward
packages to manage and reduce this risk.
Remuneration Committee
The Remuneration Committee consists of the Vice Chairman plus two
non executive directors with the Chief Executive and the Chairman in
attendance. The committee meets on average three times a year to
determine and agree with the Board the framework or broad policy
for the remuneration of the company’s Chairman, Chief Executive and
executive directors.
Nominations Committee
The Nominations Committee consists of the Chairman, Vice Chairman
and one other non executive director. The Chief Executive and the
Company Secretary also attend meetings as invitees.
Audit and Risk Committee
The Audit and Risk Committee consists of the Vice Chairman plus two
non executive directors, a representative from the external auditors,
with the Chief Executive and the Finance & IS Director in attendance.
The Committee meets at least twice a year and is responsible for the
independent monitoring of the effectiveness of the system of internal
control, compliance, accounting policies and published financial
statements on behalf of the Board. This is achieved primarily through a
review of the annual financial statements and a review of the nature and
scope of the external audit. The committee also has responsibility for
ensuring that the risk register is regularly reviewed and that any newly
identified risks are escalated to the Board.
Technical Advisory Committee
The objective of the Technical Advisory Committee is to advise the
Board on technical strategy, formulate UK views on significant items
in the Global Standards Management Process (GSMP) and provide
high level, commercially-orientated technical advice to GS1 UK staff.
The committee consists of a non executive director as its chair plus
representatives from member companies.
IT systems
The company is increasingly reliant on IT systems for the delivery of
services to members. To ensure high availability of these systems, a
business continuity plan has been developed which is regularly tested
and reviewed.
Relevance in the digital economy
With the move towards a digital economy gathering pace the company
needs to ensure that GS1 core standards retain their relevance to our
members. The Board has continued to sanction investment in IT systems
which provide additional services to members.
Economic conditions
With a broad based membership, GS1 UK is susceptible to any
worsening in general economic conditions. We will continue to consider
new sectors and to provide added value services in addition to number
provision as a means of reducing attrition amongst the membership.
Political and charitable donations
During the year the company made total charitable donations of £819
(2010: £1,650). No political donations were made in either the current or
prior year.
Auditors
Kingston Smith LLP have expressed their willingness to continue in
office as Auditors and a resolution proposing their re-appointment will
be submitted at the Annual General Meeting (AGM).
On behalf of the Supervisory Board
G Lynch
Chief Executive
6th September 2011
12 12

ANNUAL REVIEW
2010-2011
FINANCIAL
STATEMENTS
13 13

ANNUAL REVIEW
2010-2011
INCOME & EXPENDITURE
ACCOUNT
For the year ended 30 th June 2011
Note 2011 2010
£ £
Turnover - continuing operations 1 6,903, 134
Administrative expenses (7,294,333)
6,711,503
(6,878,564)
Operating deficit
2 (391,199)
(167,061)
Interest receivable and other income 3 193,875 168,602
Net (deficit) / surplus for the year before tax (197,324)
1,541
Taxation 5 (10,243)
11,193
Net (deficit) / surplus for the year after tax 12 (207,567)
12,734
Accumulated fund brought forward 2,344,084 2,331,350
Accumulated fund carried forward 12 2,136,517 2,344,084
Total recognised gains and losses
The company has no recognised gains or losses other than the results for the above two financial years.
14 14

ANNUAL REVIEW
2010-2011
BALANCE SHEET
as at 30 th June 2011
Note 2011 2010
£ £
Fixed assets
Tangible assets 6 1,571,972 1,426,596
Current assets
Debtors 7 5,212,183 4,253,320
Cash at bank and in hand 2,933,900 3,157,457
8,146,083 7,410,777
Creditors: amounts falling due within one year 8 (7,541,468)
(6,463,462)
Net current assets 604,615 947,315
2,176,587 2,373,911
Provisions for liabilities and charges 20 (40,070)
(29,827)
Net assets 2,136,517 2,344,084
Reserves
Accumulated members’ fund 12 2,136,517 2,344,084
Approved by the Supervisory Board on 6 th September 2011 and signed on its behalf by:
G Lynch
Chief Executive
Dr S Hesse
Chair of the Audit and Risk Committee
15 15

ANNUAL REVIEW
2010-2011
CASH FLOW STATEMENT
For the year ended 30 th June 2011
Note 2011 2010
£ £
Net cash inflow from operating activities 13 222,355 267,947
Returns on investments and servicing of finance 14 52,035 63,497
Rental income received 14 57,331 27,951
Taxation - (49,680)
Capital expenditure and financial investment 15 (671,052)
(918,922)
Decrease in cash 16 (339,331)
(609,207)
16 16

ANNUAL REVIEW
2010-2011
NOTES TO THE
FINANCIAL STATEMENTS
1. Accounting policies
a) Basis of accounting
The financial statements have been prepared under the historical cost convention and in accordance with United Kingdom Accounting
Standards (United Kingdom Generally Accepted Accounting Principles), which has been applied consistently (except where
otherwise stated).
b) Group Accounts
Each of the subsidiary companies has remained dormant throughout the period. Group accounts have not therefore been prepared.
The accounts relate to the single entity GS1 UK Limited.
c) Depreciation
Depreciation is provided on fixed assets estimated to write off the cost of each asset in equal annual instalments over its estimated useful
life as follows:
Short Leasehold
over the term of the lease
Computer equipment and software 20% - 33.3%
Office equipment 33.3%
Office furniture 20%
During the year the Directors reviewed the estimated useful life of the company’s core business systems and concluded that a more
appropriate estimate was 5 years given the long term nature of these systems. Due to the revised estimated useful life of the core business
systems, depreciation of £131,817 has been reversed from the Income and expenditure account in the year.
d) Pension scheme
The cost of providing pensions is charged to the Income and expenditure account systematically over periods benefiting from the
employees’ services (note 11).
e) Taxation
In accordance with FRS 19, deferred tax is recognised as a liability or asset if transactions or events that give the company the obligation to
pay more tax in future or a right to pay less tax in future have occurred by the balance sheet date.
The charge for taxation is based on the results for the year as adjusted for disallowable items.
f) Foreign currencies
Transactions denominated in foreign currencies have been translated into sterling at the rates ruling at the date of those transactions.
Amounts relating to assets and liabilities in foreign currencies at the balance sheet date are expressed in sterling at the rates ruling at the
year end.
g) Leasing commitments
Rentals paid under operating leases are charged to the Income and expenditure account on a straight line basis.
h) Turnover
Turnover represents membership subscriptions and the value of goods and services supplied, exclusive of value added tax. Subscription
revenue is recognised on receipt of cash and is spread over the life of the subscription in equal parts. All other revenue is recognised when
the income is earned.
i) Debtors
Debtors are recorded in the accounts at the time of invoice and are recognised at a fair value. Amounts may then be reduced by
appropriate allowances for irrecoverable amounts as necessary.
17 17

ANNUAL REVIEW
2010-2011
NOTES TO THE
FINANCIAL STATEMENTS
Continued
2. Operating deficit
2011 2010
£ £
The operating deficit is stated after charging:
Depreciation - owned assets 528,812 435,670
Auditors’ remuneration 11,932 10,600
Non audit fees paid to auditors 11,381 9,900
Operating leases - land and buildings 241,320 241,320
Operating leases - other 20,648 30,856
Profit from sale of fixed assets 3,135 752
3. Interest receivable and other income
2011 2010
£ £
Bank interest receivable 136,544 124,170
Rental income receivable 57,331 44,432
193,875 168,602
4. Directors and employees
2011 2010
£ £
Directors’ emoluments
Remuneration and benefits 423,761 415,913
Contributions to a defined contribution pension scheme 109,802 40,373
533,563 456,286
During the year a number of Directors took advantage of a salary sacrifice option to make contributions to their pension arrangements. The
2011 figure also includes a one-off payment.
During the year 4 Executive Directors (2010: 3) were members of the defined contribution pension scheme. In addition the Chairman’s fees for
his services were £59,249 (2010: £61,042).
2011 2010
£ £
The highest paid Director
Remuneration and benefits 162,438 166,487
Contributions to a defined contribution pension scheme 36,386 14,869
198,824 181,356
2011 2010
£ £
Total wages and salaries
Wages and salaries 3,100,958 3,041,584
Social security costs 381,151 353,523
Pension costs 340,045 268,529
3,822,154 3,663,636
The average monthly number of employees was 55 (2010: 55)
1818

ANNUAL REVIEW
2010-2011
NOTES TO THE
FINANCIAL STATEMENTS
Continued
5. Taxation
2011 2010
£ £
a) Analysis of charge in the period
Current tax:
UK corporation tax on the results for the period - -
Total current tax (note 5b) - -
Deferred tax:
Origination and reversal of timing differences 10,243 (11,193)
Total deferred tax (note 20) 40,070 29,827
Tax on deficit/(surplus) on ordinary activities 10,243 (11,193)
b) Factors affecting the tax charge for the period
The tax assessed for the period is different to the standard rate of corporation tax in the UK (21%).
The differences are explained below:
Net (deficit)/surplus for the year before tax (197,324)
1,541
Net income for the year multiplied by the standard rate
of corporation tax in the UK 21% (2010: 21%) (41,438)
324
Effects of:
Expenses not deductible for tax purposes 21,484 13,681
Capital allowances
Utilisation of tax losses
17,457
2,497
(15,786)
1,781
Current tax charge for the year (as shown above) -
-
At the year end there were tax losses carried forward of £518,845 (2010 £506,963) for use against future trading profits.
19 19

ANNUAL REVIEW
2010-2011
NOTES TO THE
FINANCIAL STATEMENTS
Continued
6. Tangible fixed assets
Short
leasehold
£
Computer equipment
& software
£
Office
equipment
£
Office
furniture
£
Total
£
Cost
At 1st July 2010 377,929 1,658,158 114,088 155,243 2,305,418
Additions - 621,260 52,699 1,587 675,546
Disposals - 164,980 371 - 165,351
At 30th June 2011 377,929 2,114,438 166,416 156,830 2,815,613
Depreciation
At 1st July 2010 118,103 568,936 96,234 95,549 878,822
Charge for the year 37,793 449,447 12,108 29,464 528,812
Disposals - 163,622 371 - 163,993
At 30th June 2011 155,896 854,761 107,971 125,013 1,243,641
Net book value
At 30th June 2011 222,033 1,259,677 58,445 31,817 1,571,972
At 30th June 2010 259,826 1,089,222 17,854 59,694 1,426,596
7. Debtors
2011 2010
£ £
Trade debtors 4,606,212 3,727,687
Other debtors 23,269 21,694
Prepayments and accrued income 582,702 503,939
5,212,183 4,253,320
8. Creditors: amounts falling due within one year
2011 2010
£ £
Members’ subscriptions invoiced in advance 5,377,247 4,909,803
Bank overdraft 115,774 -
Trade creditors 679,604 409,776
Accruals 473,516 466,844
Pension 20,806 22,527
Other creditors 47,079 20,958
Social security and other taxes 827,442 633,554
7,541,468 6,463,462
9. Limited liability
The liability of each member of the company is limited to £1.
2020

ANNUAL REVIEW
2010-2011
NOTES TO THE
FINANCIAL STATEMENTS
Continued
10. Financial commitments
The company has annual operating lease commitments which expire as follows:
Land & buildings
2011
£
Other
2011
£
Land & buildings
2010
£
Other
2010
£
Less than one year - - - 5,373
Within two to five years - 15,601 - 15,601
After more than five years 344,738 - 344,738 -
344,738 15,601 344,738 20,974
11. Pensions
The company operates a defined contribution pension scheme to which both the company and employees pay contributions. Contributions of
£20,806 (2010: £22,527) were payable to the fund at the year end (see note 4 for total employer contributions paid during the year).
The company contributed to a multi-employer defined benefit scheme, in respect of one employee only (of a total scheme membership of
approximately 133), until the Trustees notified their intention to cease accepting payments into the scheme with effect from 31st July 2002. The
company has been informed that it will not be liable for any deficit remaining in the scheme in the event of the closure of the scheme operator
and does not consider it necessary to make any further disclosures under FRS 17.
12. Reconciliation of movements in members’ funds
2011 2010
£ £
Results for the year attributable to members of the company (207,567) 12,734
Opening members’ funds 2,344,084 2,331,350
Closing members’ funds 2,136,517 2,344,084
13. Reconciliation of operating deficit to net cash inflow from operating activities
2011 2010
£ £
Operating deficit
Depreciation
(391,199)
528,812
(167,061)
435,670
(Increase)/decrease in debtors (874,355)
51,398
Increase/(decrease) in creditors 962,232
(51,308)
Profit from sale of fixed assets
Net cash inflow from operating activities
(3,135)
222,355
(752)
267,947
21 21

ANNUAL REVIEW
2010-2011
NOTES TO THE
FINANCIAL STATEMENTS
Continued
14. Returns on investments and servicing of finance
2011 2010
£ £
Interest received 52,035 63,497
Rental income received 57,331 27,951
15. Capital expenditure and financial investment
2011 2010
£ £
Payments to acquire tangible fixed assets
Proceeds from sale of tangible fixed assets
(675,546)
4,494
(920,404)
1,482
(671,052)
(918,922)
16. Reconciliation of net cash flow to movement in net debt
2010 Cash flow 2011
£ £ £
Cash at bank and in hand 3,157,457 (223,557) 2,933,900
Bank overdraft - (115,774)
(115,774)
3,157,457 (339,331) 2,818,126
17. Subsidiary undertakings
The company has wholly owned subsidiaries, which are registered in England and Wales, as follows:
Name of company Description of shares held Accounting year end
The Electronic Commerce Association Limited by Guarantee 30 th June
Article Number Association (UK) Limited Limited by Guarantee 31 st December
Association for Standards and Practices Ordinary Shares of £1 each 30 th June
in Electronic Trade - EAN UK Limited
All the above companies are dormant and no value has been attributed to these subsidiary undertakings in the accounts.
2222

ANNUAL REVIEW
2010-2011
NOTES TO THE
FINANCIAL STATEMENTS
Continued
18. Related party transactions
J Spittle is a member of the Supervisory Board.
During the year the company made net purchases to the value of £75,776 (2010: £56,833) from Cranfield University, a company in which
J Spittle has an interest. At the year end the balance outstanding to this company was £19,174 (2010: £11,504).
All transactions were undertaken on standard commercial terms.
19. Capital commitments
At the year end there were no capital commitments entered into.
20. Provision for liabilities and charges
2011 2010
£ £
Accelerated capital allowances 40,070 29,827
Provision at start of period 29,827 41,020
Deferred tax charge in profit and loss account for period (note 5) 10,243
(11,193)
Provision at end of period 40,070 29,827
23 23

Strategic Partner:
www.ibm.com/uk/en/
5 012345 000893 >
Staple Court,
11 Staple Inn Buildings
London WC1V 7QH
T +44 (0)20 7092 3500
F +44 (0)20 7681 2290
E info@gs1uk.org
Service Team (Freefone) 0808 178 8799
www.gs1uk.org
Company registration number: 1256140