FTA Annual Report 2012 - Freight Transport Association

Annual Report 2012 

Incorporating the Annual Accounts 

for 2012 and Notice of the 

Annual General Meeting 2013 

Safe, efficient and sustainable supply chains

2012: A year in images 

© Jeff Gilbert 

2 

FTA Annual Report 2012

Contents 

2012: A year in images 

●● 

2 

●● 

2012: A year in Freight 4 

President’s Report 

●● 

5 

2012: A year in numbers 

●● 

6 

Chief Executive’s Report 

●● 

7 

● ● Policy and Campaigns 

8–9 

–– Fuel duty 

–– Road user levy 

–– Olympics and Paralympics Games 

–– Transport Hub 

–– Modal switch 

–– Container loading 

–– Van Excellence 

● ● Member Services 

10–11 

–– VIS 

–– 

Tachofta 

–– Compliance Information Service 

–– Training 

–– 

Shopfta 

–– Consultancy 

–– PCN administration 

● ● FTA Network 

12–13 

FTA works with a wide network of organisations 

● ● Democracy and Governance 

14–15 

●● 

Annual Accounts and Notice of Annual General Meeting 16–30 

●● 

2012: A year in FTA Publications 

31 

FTA Annual Report 2012 3

2012: A year in Freight 

Key events in FTA’s year as recorded 

in Freight magazine 

4 


President’s Report 

Dear Member 

Despite optimism at the end of 2011 that the economy was moving forward from recession 

and back to growth, the reality in 2012 has been somewhat different for the wider economy 

and it has proved another difficult year for our members . There are early signs of growth as we 

enter 2013 – let’s hope the worst is now behind us. 

Against this backdrop I am pleased to report that FTA has made positive progress in 2012 . We have had an acceptable year from 

a trading perspective with turnover broadly in line with previous years and most importantly we end the year with more members 

than we started with – hopefully evidence that the business is providing continued value and influence despite the challenging 

business environment. Our recent research from Ipsos Mori also tells us that we continue to be a credible, responsive, visible and 

increasingly influential organisation within the transport sector. Something our management team should be very proud of since this 

has been one of their key objectives over the last few years. 

It is very pleasing to see the success your Association has had in 2012 in again halting the increase in fuel duty – we have been 

a founding member and major supporter of the FairFuelUK campaign and it is reassuring to see the whole industry join forces 

to ensure we speak with a common voice on such an important issue to our members. Whilst there have been numerous other 

areas of success in 2012 progress on longer vehicles and vehicle heights have been encouraging and our teams played a major role 

working with Transport for London (TfL) and other organisations in ensuring our members were able to keep London in business 

and deliver a very successful Olympics. We also saw good progress with the establishment of the Global Shippers’ Forum and the 

establishment of FTA Ireland. I think a Gold medal year for FTA. 

Behind the scenes at FTA we have been ensuring the organisation is fit for purpose with a major investment programme in FTA’s 

business support systems and IT infrastructure. As an employer of over 400 people, FTA has also excelled by achieving the Investors 

in People award at Gold standard at its first attempt, an achievement that all the staff can feel proud of and is a tribute to the commitment 

to the leadership and development of the Association shown by Theo de Pencier and the senior management team. These 

two achievements, together with renewed focus on evolving and innovating our business services, will ensure we are able to grow 

our turnover and profitability in the next few years and enable the organisation to continue to invest further in our influencing and 

campaigning agenda on your behalf. 

In 2012 I have welcomed several new members to the FTA Board who each bring valuable insight and experience to our governance 

role, as well as representing the broad interests of the FTA membership. Ian Stansfield and Kevin Appleton, Vincent Brickley, 

Ray Ashworth, Jon Moxon and Carole Woodhead will all bring extensive knowledge of their respective sectors in order to support 

and challenge the Executive in their delivery of our strategic goals. 

I am also grateful for the contributions made by those Board members who have stood down during the year and want, in particular, 

to pay tribute to John Coghlan, who has served in the role of Honorary Treasurer for nine years and has been a source of great 

knowledge and counsel throughout that time. John has succeeded me as Chairman of the Board of FTA Ireland so will continue to 

guide and support our activities in his home country. 

The Board acts as the Board of Governance of FTA but decisions on policy and campaigning priorities rest with its National Council 

and as President I have had the privilege of chairing this vital part of FTA’s democracy. I continue to be impressed by the level of 

commitment and contribution shown by all members of FTA Freight Councils that ensures rigour and robustness in our public policy 

positions. It should be a source of continuing reassurance to members (and politicians) that FTA policies are so clearly determined 

by its members. I believe it is the key reason why FTA is listened to by Government at all levels, and my several meetings with the 

Secretary of State and ministers during the year have evidenced the high regard in which FTA is held. 

This will be the last Annual Report that I present as President of FTA as I shall be stepping down at the AGM in April and handing 

over to my successor Ian Veitch. Ian is a long-standing member of the Board and has extensive experience of the industry. He will be 

an excellent President and I am confident he will work well with the Board and National Council. It has been a privilege to serve as 

your President for four years and I am grateful to all members for their support and continued commitment to FTA. For the future 

I hope to see the industry continue to be proactive in addressing the challenges of sustainability. FTA has been an important supporter 

of our industry charity Transaid over the last three years and I also hope to see that relationship maintained for the future. 

The logistics sector can be proud of its achievements and that in FTA it possesses a strong advocate of its interest and reputation 

and a supplier of high quality services to support it. I am confident it will deliver continued success in the future. 

Stewart Oades 

President 


2012: A year in numbers 

FTA’s members operate over 200,000 heavy goods vehicles, around half of the UK total, 

and consign more than 90 per cent of freight moved by rail and 70 per cent of UK visible 

exports by sea and air. We support and serve a dynamic, vital sector of the economy with 

high quality advice, services and representation. 

Serving our members – an annual summary 

Information 

●● 

●● 

●● 

●● 

●● 

26,000 legal and technical enquiries handled by 

the Member Advice Centre 

Over 300,000 Google-verified visitors to FTA’s 

website at www.fta.co.uk 

FTA’s redesigned monthly Freight magazine 

circulated to over 100,000 

Some 4,000 delegates attended FTA events 

Over 1,700 users of FTA subscription services 

Auditing 

●● 

●● 

●● 

●● 

●● 

Over 70,000 vehicle and equipment inspections 

carried out 

Over 6,000 vehicle inspection audits on buses 

and coaches 

25,000 hours spent by Tachofta on-site advisors 

at members’ premises 

20 million driver days analysed by Tachofta 

526 consultancy and dangerous goods projects 

undertaken by FTA Consultancy 

Transaid 

●● 

●● 

●● 

£10: the voluntary donation to Transaid made 

by over 70% of FTA members during 2012 as 

part of their membership renewal 

Over £100,000 raised in 2012’s London to Paris 

cycle challenge 

£150,000: the total contributed by FTA 

members to Transaid’s vital work in improving 

road safety and logistics endeavours in African 

countries 

Representation 

●● 

●● 

●● 

●● 

Over 1,000 members involved in national and 

regional freight councils 

Meetings with Secretary of State for Transport, 

ministers and shadow ministers from each of 

the main political parties plus ministers holding 

transport responsibilities with the Scottish 

Government, and the Welsh and Northern 

Ireland Assemblies 

Over 100 meetings with members of the 

Westminster and European Parliaments, 

the Scottish Parliament, and the Welsh and 

Northern Ireland Assemblies 

10p per litre: the saving made for every member 

by the successful campaign to stop fuel duty 

increases 

Training 

●● 

●● 

●● 

●● 

Over 75 training courses offered 

Over 1,500 days of in-company training delivered 

Over 450 candidates completed Transport 

Manager CPC courses 

Over 7,000 drivers undertaken Driver CPC 

training 

Support services 

●● 

●● 

●● 

●● 

●● 

18,000 orders taken by Shopfta 

Shopfta range expanded to over 800 products 

75,000 vehicles registered for FTA Recovery 

8,500 vehicles registered for the Well Driven 

scheme 

Over 2,000 driver licence checks carried out 

6 


Chief Executive’s Report 

A Curate’s Egg 

FTA entered 2012 with some confidence. The UK appeared to be emerging from recession 

and our 2011 second half trading performance alongside rising member numbers made us feel 

positive about the year ahead. So was that early confidence justified as the year unfolded The 

short answer is, like the curate’s egg, it was good ‘in part.’ 

As the President has already indicated income was broadly flat year on year. Whilst this was a disappointment, 

it reflected the economic reality of the country as a whole with GDP showing no growth 

and the continuing absence of business confidence to invest. In common with many of our members 

we managed our costs prudently and, therefore operating surplus and net surplus retained within the 

business grew by 22 per cent and 12 per cent respectively. Overall, member numbers increased by 272 

(two per cent) to 14,105 at the year end, the highest level since 2008. This, in part, reflected the investment 

in developing new offerings such as Van Excellence and PCN management, alongside our core 

Membership offer and Business Services. 

Within the established service portfolio, it was pleasing to see our Vehicle Inspection business and 

Training return to growth, alongside continuing strong performances from our Consultancy activities and 

Shopfta. Tacho volumes and seminar income remained challenging throughout the year. 

During the year we undertook a detailed review and update of FTA’s Strategic Plan which was shared 

with the Board in September. Unsurprisingly, our mission “to help our members develop safer, more 

efficient and sustainable supply chains” has not changed. However, we have added the strapline, “putting 

the member at the heart of everything we do” and have developed five overarching themes (see 

below) to pull together our varied activities and overcome our challenges as we move forward. In turn, 

we have reorganised some of our reporting lines in order to be able to better serve and respond to 

member needs and market changes. 

Towards the end of the year we conducted, through Ipsos Mori, some in-depth research into key stakeholder 

(politicians, journalists and other industry figures) perceptions of the logistics industry and FTA 

as a representative and campaigning body. This was the fourth such study we have carried out since 

2007 and conclusively showed a greater awareness, understanding and appreciation of our industry by 

those in positions of influence, as well as the continuing high regard in which FTA is held. Respondents 

indicated that FTA was listened to because of our large 

and diverse membership base, our evidence-based well 

reasoned arguments and willingness to meet stakeholders 

face to face to argue our case. 

In conclusion, FTA’s business model – the combination 

of respected and trusted advisor to members and other 

stakeholders, alongside the provision of class leading 

business services – has once again proved to be resilient. 

As we look forward to a fifth year of, at best, 

modest growth for the UK economy, we will continue 

to invest in our business, collaborate with others to 

further the logistics industry’s interests and deliver 

another set of robust results. 

FTA membership is a broad church. We will continue 

to represent and support you all to the best 

of our ability. 

Our five overarching themes 

• Like to love 

• Growing today’s business 

• bringing innovative products to market 

• Transforming our processes 

• one team 

Delivering safe, efficient, sustainable logistics 

Theo de Pencier 

Chief Executive 


Policy and Campaigns 

Success in halting fuel duty increases, not once but three times, was the highlight of several 

successful campaigning outcomes for FTA in 2012 and logistics was on the podium again 

in the year of the Olympics. 

Fuel costs remained the primary concern of members during 

2012 and therefore the most prominent campaigning issue for 

FTA. We continued to be the lead sponsor of FairFuelUK that 

fronted the campaign on behalf of a range of organisations to 

reduce UK fuel duty to more competitive levels compared to 

the rest of Europe. The campaign enjoyed considerable success 

in 2011 when fuel duty was reduced by 1p, and in 2012 built 

on this achievement by again persuading the Chancellor to 

abandon planned increases in fuel duty on no fewer than three 

occasions during the year. Fuel duty remains 9p a litre lower 

than the Government intended it to be, saving truck operators 

over £1 billion a year 

The campaign strategy involved maintaining a high profile 

presence on various social media, directing a steady stream of 

information and feedback to MPs and responding to frequent 

requests for press and broadcast interviews . The campaign 

took a fresh approach during 2012 by commissioning reports 

by two leading economic consultancies that both showed that 

a reduction in fuel duty would act as a stimulus to growth in 

the economy. 

A new dimension to road taxation emerged in the autumn with 

the publication of a parliamentary bill to introduce a road user 

levy for vehicles above 12 tonnes. FTA gave supporting evidence 

to the parliamentary committee scrutinising the bill to ensure UK 

operators are fully compensated by reductions in VED; the levy is 

simple to pay and administer and it is effectively enforced. 

The staging of the Olympic and Paralympic Games in London in 

the summer of 2012 was a national triumph but posed serious 

logistical challenges to the organising authorities – how to deliver 

a smoothly functioning Games for athletes, officials and spectators 

yet keep one of the world’s busiest cities supplied and serviced. 

A major achievement for FTA in 2011 was to alert Transport for 

London to the need to understand and support logistics operators 

during this time. FTA worked closely with TfL and the Games 

organising committee, LOCOG, to bring this about with high level 

participation in a dedicated freight planning group, a highly successful 

conference in May, and numerous staff engagements to brief 

members and troubleshoot specific problems. FTA’s in-house IT 

specialists developed a web-based updating and alerting system, 

including FTA’s first smartphone ‘app’, to supply information in 

real-time to members throughout the Games period. 

London 2012 turned out to be one of logistics’ finest hours 

with nearly all planned deliveries being made, many at night 

under specially authorised trials based on FTA’s pioneering 

work with the Quiet Delivery Consortium, It was a demonstration 

of the resilience and ingenuity of logistics planners 

and operators to work around traffic and delivery restrictions 

and sudden peaks in demand, given adequate notice and the 

The Transport Hub 

FTA founded the Transport Hub in 2009 in order to gain greater leverage from its presence 

at the party political conferences by working with other organisations seeking to raise the 

level of political awareness of transport issues and improve the quality of debate. In 2012 

the Transport Hub comprised of the following organisations and the topics covered in 

fringe meetings were airport policy, parking policy and enforcement. 

ABTA – The Travel Association 

Airport Operators Association 

All-Party Parliamentary Light Rail Group 

British Parking Association 

Chartered Institute of Logistics and Transport 

Freight Transport Association 

Light Rapid Transit Forum 

Sustainable Aviation 

Sustrans 

Chief Executive Theo de Pencier 

and Deputy Prime Minister Nick 

Clegg MP at the Liberal Democrat 

Party Conference in Brighton 

©Manny Begum 

8 


Transport Minister Norman Baker 

visits the ‘Exchanging Places’ vehicle 

provided by Cemex at the Liberal 

Democrat Party Conference in 

Brighton 

cyclists of the dangers of passing on the nearside. The winning 

designer was, appropriately, also an avid cyclist. 

London 2012 saw many innovative 

solutions to making deliveries – captured 

in the Logistics Legacy report 

right information. FTA captured the successes and techniques 

adopted by members in the Logistics Legacy report published 

at the end of the year to highlight the benefits of close cooperation 

with London authorities and establish an agenda for 

tackling some of the other sources of cost and inefficiency in 

delivering in London in the future. 

FTA again hosted and managed the Transport Hub at the 

three main party political conferences during the autumn as 

part of its continuing campaign to raise the image of transport 

amongst politicians and advisors. FTA chose to confront 

the difficult subject of cyclist safety around large vehicles in its 

own fringe meetings – a topic that generated much anti-lorry 

sentiment during the year. We also presented the considerable 

progress made by operators in improving vehicle safety 

and driver awareness of cyclists and demanded recognition 

by cycling groups of the responsibilities that cyclists have to 

other road users. Working closely with Cemex, who provided 

a vehicle and driver at every event, FTA offered politicians 

the chance to sit in a truck cab and experience the driver’s 

view of the road . FTA also sponsored a national competition 

to design a new warning placard for use on vehicles to warn 

As the railways implemented a major restructuring of Network 

Rail following the McNulty Review and a review of Track Access 

Charges by the Office of Rail Regulation, FTA worked to protect 

the interests of freight users and operators. In January FTA 

highlighted the considerable traffic being moved by rail in the 

retail sector in a special report. On track! catalogued the services 

now operating on behalf of eight retailers and showed 

the critical role being played by logistics providers in making 

modal shift a reality. On track! was closely followed by On board! 

that showed similar examples of the use of waterborne transport 

from the point of view of the cargo owner. Both documents 

identified issues and opportunities that constrain further 

growth in these markets which will form the basis for future 

FTA campaigning in these arenas. 

Responding to members’ concerns and regulatory initiatives by 

the International Maritime Organization, FTA developed a range 

of education and briefing materials alerting to the dangers of 

unsafe packing of maritime containers. This is a global issue and 

FTA used the Global Shippers’ Forum that it established in 2010 

to raise the profile of the subject around the world and take a 

leading role in the development of best practices. 

The number of fleets achieving the Van Excellence accreditation 

increased to 35 by the end of 2012 representing about 76,000 

vehicles in total. Van Excellence accredits operators achieving a 

voluntary standard for compliant 

van fleet management and 

was awarded the ‘Best New 

Service Award’ at the Fleet 

News Awards in May. 

FTA’s Mark Cartwright and James 

Hookham receive the Fleet News 

Award for Van Excellence 


Member Services 

FTA won significant new business and continued investing in class-leading services 

to support members in their search for continued efficiencies and high standards of 

compliance. 

FTA offers a range of high quality services for the freight industry 

that support members in their goals of continuous compliance, 

improved efficiency and environmental responsibility. 

Developed in close association with the market, FTA’s service 

portfolio is backed by the expertise and experience of a leading 

trade association that puts its members’ interests first. 

The Vehicle Inspection Service (VIS) was awarded a major 

contract to help ensure the safety of passenger vehicles to 

be used in the huge logistics operation servicing the Olympic 

and Paralympic Games. VIS also commenced offering workshop 

accreditations to the IRTE (Institute of Road Transport 

Engineers) standard and delivered audits of fleet operators 

seeking the Van Excellence accreditation. The service successfully 

renewed its UK Accreditation Service certification enabling 

it to carry out work to the standard required and recognised 

by many major fleets in the public and private sectors. 

A major enhancement to the way the results of inspections 

and other management information is presented to users of 

the Vehicle Inspection Service was commissioned during 2012. 

The VIS Gateway will be released during early 2013 and will 

provide a flexible and customisable interface for users to interrogate 

data and correlate findings across their fleet. 

FTA’s tachograph analysis and drivers’ hours management service, 

Tachofta, also won significant business from contractors 

to the Olympics and Paralympic Games during the year and 

provided support and advice to members needing to meet 

demanding service standards. One of the many ways in which 

FTA supports members’ analysis needs is by implanting staff in 

their businesses and a new model for this approach was agreed 

with one of our largest contracts in 2012. This offers the advantage 

of an in-house analysis service backed by the knowledge 

and support of FTA. 

The analysis of drivers’ hours records is undergoing dramatic 

change as the switch from analogue to digital tachographs continues 

and FTA observed a marked acceleration of this trend 

during 2012. Data from digital units now accounts for 90 per 

cent of throughput. New systems integrating other vehicle telematics 

functions are also beginning to emerge and FTA is investing 

heavily in its analysis engine and reporting infrastructure to 

maximise the value to members that these new developments 

can offer. A major upgrade to the Tachofta system, released in 

October, allowed most transactions to be carried out online 

and a major rollout to members was undertaken during the 

final quarter of the year. The pace of change continues into 

Tachofta 

Technological developments are transforming the way that tachograph records are 

analysed and reported. The declining use of older vehicles fitted with analogue 

tachographs and the fitting of integrated telematics systems in newer models 

has required analysis and reporting systems to be upgraded and expanded to 

keep pace. Throughout 2012 FTA continued to invest in the capabilities and 

functionality of its Tachofta service to offer members the efficiencies and 

benefits of these developments. New developments in 2012 included: 

• instant analysis of drivers’ tachograph card records and reporting of 

any infringements 

• new functionality that analyses data from vehicle units and provides 

vehicle management information in a calendar format 

• the ability for members to produce their own management reports, 

using the self-service features on the new web Gateway portal 

• remote downloading of driver and vehicle data via telematics 

systems for analysis and integration into other management reports 

• performance improvements and usability upgrades to keep the system 

user-friendly 

Other enhancements are under active development and will be released 

throughout 2013. 

10 


FTA provided compliance auditing 

and inspection services to 

contractors supporting 

London 2012 events 

2013 with enhancements and additional functions planned for 

release throughout the year. 

The management of the Vehicle Inspection Service and of 

Tachofta was brought together with FTA’s Member Advice 

Centre and engineering advice to create a new Compliance 

team that will integrate FTA’s service offer to members responsible 

for meeting regulatory and industry standards for safe and 

efficient operations. A new contract management team was 

also created to manage VIS and Tacho accounts and maximise 

members’ value from these services. 

With less than two years to go before most vocational drivers 

need to hold a Driver CPC qualification, FTA’s training business 

recorded a significant increase in delegates through its 

public and in-company courses. There was also strong demand 

for Transport Manager CPC courses as the new combined 

national and international syllabus settled in. 

FTA Training invested in new interactive polling systems to 

test delegates’ learning during and at the end of courses, that 

will help demonstrate the achievement of training objectives 

and value for money to employers. A new range of updated, 

expanded and more user-friendly course material was developed 

and released for use across a range of courses, benefiting 

from FTA’s extensive in-house expertise and experience. The 

business is also developing a suite of e-learning materials that 

will build into an online academy for launch in 2013. 

Shopfta is a one-stop supplier of transport consumables for the 

traffic office, the workshop, warehouse and the vehicle fleet 

and has grown dramatically in the past five years to become 

FTA’s fourth largest revenue earner. A major upgrade of its online 

website was commissioned during 2012 providing a new 

look for users and rationalised order fulfilment system for more 

efficient deliveries and management information. The new system 

also incorporates a web-chat facility allowing purchasers 

to discuss product lines with FTA staff before purchase and 

comment on their experiences of using the products bought. A 

number of significant orders were won in competitive tenders 

during the year and Shopfta was appointed preferential supplier 

by a number of national fleets, offering customised product 

ranges and dedicated online portals on members’ intranet 

systems. 

FTA’s Consultancy business defied an otherwise lacklustre market 

and exceeded £1 million revenue for the first time in 2012. 

The business won competitively the contract to deliver onsite 

audits for the Fleet Operator Recognition Scheme (FORS) 

on behalf of Transport for London and secured other major 

contracts from the public and private sector, advising on fleet 

management, health and safety and operations management 

issues and solutions. 

The recently launched service for administrating Penalty 

Charge Notices (PCNs) incurred during deliveries, particularly 

in London, also grew as members took advantage of FTA’s 

experience of challenging incorrectly issued tickets and making 

prompt and reduced payments of substantiated fines. 

Screenshots from the FTA Gateway – the member service for 

tachograph analysis 


FTA Network 

FTA works with a network of other organisations in pursuit of its policy, service and 

corporate objectives. In some cases FTA has established new entities to formalise these 

relationships and created new channels of influence or access to target audiences. 

CBI 

CBI is the principal voice of employers to government and the media and represents the views of 

over 240,000 companies in the UK. It has unrivalled access to government on a range of economic 

and employment issues critical to the success of FTA policy objectives and members’ interests. FTA is 

represented on the President’s and Chairman’s Committees by its Chief Executive, Theo de Pencier, 

who also chairs CBI’s Trade Association Council. 

everywoman 

everywoman was founded in 1999 to support women at every stage of their professional careers 

and the businesses that wish to encourage them. everywoman runs networking events and awards 

in different sectors across business and established the everywoman in Transport & Logistics Awards 

five years ago. FTA has supported everywoman during its inception and will be title partner for the 

2013 awards. 

FairFuelUK 

FairFuelUK is the national campaign for lower fuel prices and transparency in fuel pricing. It was formed 

in 2011 by Peter Carroll Associates and brought together FTA, RHA and RAC Services to form a 

united voice in the campaign to halt above inflation increases in fuel duty. The campaign has established 

a large following amongst businesses and the public with over 400,000 individuals registered through 

its website. 

Freight by Water 

FTA took over the management of Freight by Water in 2011 to provide continuity in the work of the 

UK’s co-ordination centre on short sea shipping. 

FTA Ireland 

FTA Ireland was created in 2010 by FTA bringing together over 20 transport operators based in the 

Republic of Ireland to promote high standards of compliance and fleet operation and a responsible 

voice for Irish logistics with the government and in the media. Uniquely, FTA Ireland requires all members 

to be accredited to an industry compliance standard as a condition of membership. 

Global Shippers’ Forum 

FTA established the Global Shippers’ Forum in 2010 with partner organisations in North America and 

Asia to provide a platform for the views of logistics buyers to international regulatory organisation and 

a voice for users of container shipping and air cargo services. 

12 


Investors in People 

Launched in 1991, Investors in People is the UK’s leading people management standard that demonstrates 

commitment to achieving business goals through good people management. An organisation 

that has achieved Investors in People has been successful in adopting and maintaining its fundamental 

principles. In 2012 FTA achieved the IIP Gold standard, having been awarded Silver standard in 2011. 

IRU 

The International Road Transport Union (IRU) is the global road transport organisation, which upholds 

the interests of bus, coach, taxi and truck operators. FTA works closely with IRU on policy matters and 

through our Brussels office to co-ordinate influence of the European Commission and Parliament on 

legislation that will critically affect road transport operators in the UK. 

Logistics Carbon Reduction Scheme 

The Logistics Carbon Reduction Scheme was established by FTA in 2009 as a direct response to the 

adoption of ambitious carbon dioxide reduction targets enshrined in the Climate Change Act. The 

scheme aggregates fuel usage data from each participating vehicle fleet and reports the collective 

progress towards a declared reduction target in its annual report published each spring. The scheme 

provides a forum for the development and dissemination of best practice in close alliance with the 

Logistics Research Centre at Heriot Watt University. At the end of 2012, 79 companies participated in 

the scheme, operating some 70,000 vehicles. 

The Motorists 

Forum 

The Motorists Forum 

Established in 2001 the Motorists Forum advises ministers on policy affecting all drivers and the development 

of road safety. FTA is represented by its Chief Executive. 

Quiet Delivery Consortium 

The Quiet Delivery Consortium is a collaboration between FTA, the Noise Abatement Society and 

two consultancies, TRL and TTR, that helps businesses and local authorities to make quiet, night-time 

deliveries a reality. The consortium offers the range of skills and experience needed to agree changes 

in site restrictions and operational procedures and to secure the co-operation of local authority and 

community interests. Trial deliveries are monitored to ensure the expectations of all parties are met 

and the business and community benefits are realised. 

The Transport Hub 

The Transport Hub provides a focus for the debate and promotion of transport issues at the three 

main party political conferences each autumn. FTA ran the first Transport Hub in 2010 with founder 

members ABTA, the Airport Operators Association and the British Parking Association. FTA hosts and 

manages the Transport Hub on behalf of participating partners that in 2012 included the Chartered 

Institute of Logistics and Transport (CILT), All Party Light Rail Group, Light Rapid Transit Forum, 

Sustainable Aviation Forum and Sustrans. 

Van Excellence 

Van Excellence demonstrates the attainment of responsible standards of operation by van fleets operating 

in a wide range of sectors and performing varied functions, including home delivery, utilities servicing, 

mail and parcels and construction and maintenance. FTA launched the scheme in 2009 and accredited 

its first members to the Van Excellence Code in 2010. At the end of 2012, 130 companies operating 

150,000 vans were involved with Van Excellence with 35 fleets having achieved accreditation. 


Democracy and Governance 

FTA is owned and governed by its members. Policy positions and campaigning objectives 

are set by members meeting in regional and national councils. The FTA Board is responsible 

for governance and financial stewardship of FTA, and is the body to which the Chief 

Executive and Executive Directors report. 

National Freight Council chairmen 

(2012–13) 

Eric Fisher 

Road Freight Council 

Abbey Corrugated 

Dave Rowlands 

West Midlands 

Wincanton 

Kenneth Russell 

Rail Freight Council 

John G Russell 

(Transport) Ltd 

Roy Bufton 

British Shippers’ Council/ 

International Supply Chain Forum 

3M UK plc 

Regional Freight Council chairmen 


Jim Valentine 

Greater London 

Jayhawk Ltd 

Peter Woodhouse 

South West England 

Stone King Sewell LLP 

Vincent Brickley 

Wales 

Tandem Transport 

Services Ltd 

Jeff Ritchie 

North East England 

SCS Upholstery Ltd 

David Owen 

North West England 

Royal Mail 

Philip Marsden 

South East England 

C Brewer & Sons Ltd 

Eric Fisher 

East of England 

Abbey Corrugated 

John Walter 

Yorkshire and 

Humberside 

Johnsons of Whixley Ltd 

Stephen Halleran 

Scotland 

ADM Milling 

Allison Kemp 

East Midlands 

AIM Commercial 

Services Ltd 

Jeff Shaw 

Northern Ireland 

Ards Borough Council 

14 


FTA Board 


Stewart Oades (President) 

Director – Palmer and Harvey 

Trustee – Transaid 

Andrew J Haines 

Supply Chain Director EMEA 

Bulk Ingredients, Tate & Lyle 

Ian Veitch (President Elect) 


Yusen Logistics (UK) Ltd 

Jon Moxon (Treasurer) 

Group Finance Director 

Palmer and Harvey 

Rebecca Jenkins (Vice President) 

Director UK Development 

Greater Than 

Kevin Appleton 

Divisional Chairman 

Travis Perkins 

Alastair Parker 

GCM – Logistics 

Shell International Petroleum 

Company 

Graham Roberts 

Chairman 

Hellenic Carriers Ltd 

Ray Ashworth 

Managing Director 

DAF Trucks Ltd 

Ian Stansfield 

Distribution Director 

Asda Stores Ltd 

Vincent Brickley 


Tandem Transport Services Ltd 

Tony Ciaburro 

Corporate Director of Environment, 

Growth and Commissioning 

Northamptonshire County Council 

Perry Watts 

Chief Executive Officer 

– UK and Ireland 

DHL Supply Chain 

John H Williams 


Maritime Transport Ltd 

Theo de Pencier 


Freight Transport Association 

Carole Woodhead 


Hermes Parcelnet Ltd 


Annual General Meeting 2013 

Notice is hereby given that the Annual General Meeting of Freight Transport Association Limited will be held at the Hilton Hotel, Park 

Lane, London at 9:30am on Tuesday 23 April 2013 for the purpose of transacting the following business: 

1 Directors’ Report 

To receive the Report of the Directors for the year 2012. 

2 Annual Accounts 

To receive the Income and Expenditure Account for the 

year ended 31 December 2012, the Balance Sheet as at 

that date and the Auditors’ Report. 

3 Auditors 

To appoint Auditors and to fix their remuneration. 

4 Other Business 

To deal with any other business admitted by the Chairman. 

By order of the FTA Board 

David Wells – Company Secretary 

1 March 2013 Hermes House, St John’s Road, Tunbridge Wells, Kent TN4 9UZ 

The Report of the Directors for the year ended 31 December 2012 

Your Directors have pleasure in submitting their Annual Report and Accounts for the year ended 31 December 2012. 

For the purposes of the Companies Act 2006, Members of the FTA Board are Directors. The names of those persons who were 

members of the Board during 2012 appear on page 17 of the Accounts. 

The Association acts as a trade association for its members who operate or manage supply chains and use freight transport in 

connection with their business. During the year it continued to provide a range of services to the membership and pursued a vigorous 

and responsible representational role. 

The Association performed satisfactorily during a year when business confidence in the strength of the UK economy ebbed and flowed. 

Income was broadly the same as 2011 at £23.5m and is derived from a combination of membership fees and services. Services include 

Vehicle Inspection, Tachograph Analysis, Training, Consultancy and Shopfta. Despite these difficult trading conditions the Association’s 

trading performance improved throughout the second half of the year as the organisation’s initiatives bore fruit. Membership numbers 

rose two per cent to 14,105 at the year end. Vehicle inspections remain the largest of our business streams. This service continues 

to expand into the heavy van sector within the framework of the Association’s Van Excellence Scheme. The Tachograph Analysis 

Service has also contributed strongly in 2012 and further investment in this area is planned during 2013. Elsewhere there were solid 

performances in Training, Consultancy and the Association’s online shop. 

Throughout the year the Board has taken action to control costs and as a result year end head count had reduced to 404. The operating 

surplus for the year was boosted by the further recovery of £66k of bank deposits as explained in Note 4 of the financial statements. 

Market conditions for 2013 remain tough, though the Board believes the Association is well placed to succeed given the plans and 

actions that are in place. 

Key performance indicators used within the business include membership numbers and renewal rates, contract numbers and 

productivity in vehicle inspections, productivity and turnaround times in Tacho and delegate numbers attending our training courses, 

seminars and Freight Councils. 

FTA’s mission is to help its members develop safer, more efficient and sustainable supply chains. The Association’s future will be shaped 

by four factors. 

1 Members’ demands, needs and expectations arising from their membership and ownership of one of the country’s biggest trade associations 

2 Changing economic and market pressures – the environment in which members trade 

3 New regulatory and policy pressures – members’ compliance obligations 

4 Innovation or acquisition of other services that maximise the safety, efficiency and sustainability of members’ supply chains and grow 

the trading strength of FTA 

FTA’s strategic plan maps out the expected changes in these factors and builds a plan that responds to them and underpins growth 

consistent with its objectives. 

Key risks facing the organisation are the need to maintain membership numbers, the need to invest in further development of its 

services to members and the requirement to meet its pension funding obligations. Management processes exist to monitor, report on 

and control all of these areas. 

The balance sheet (excluding pension adjustments) at 31 December 2012 remains strong at £6.4m. However, even though FTA paid 

pension contributions of £2.062m to the Pension plan in the year, the pension fund deficit increased by £0.3m due to an actuarial loss of 

£2.12m arising from, in part, adverse changes in the assumptions in the year. As a result, the FRS17 pension deficit included in the balance 

sheet at 31 December 2012 amounted to £6.8m leaving net liabilities of £(0.4m). The level of contributions payable to the pension plan 

under the current schedule of contributions for the year ended 31 December 2013 is £1.714m which the directors consider FTA can 

continue to pay. In December 2012 the Association reached an agreement with the International Road Transport Union and other parties, 

16 

FTA Annual Accounts 2012

at no cost to the Association, in relation to the contingent liabilities that existed at December 2011. As a result of this agreement the 

Association held £1.3m of cash at 31 December 2012 which was paid over to the International Road Transport Union in February 2013. 

Formal arrangements exist for the management team to discuss and contribute to the financial, economic and social objectives of the 

Association and regularly to brief all staff on the activities in which the Association is engaged. During the year FTA maintained its policy 

of giving full and fair consideration to applications for employment made by disabled people. The Association is committed to continuing 

employment and training of employees who become disabled and to the training, career development and promotion of all employees. 

During 2012 the Remuneration Committee – chaired by the President – and the Audit Committee – chaired by the Honorary 

Treasurer – met to consider matters appropriate to their remit and subsequently update the FTA Board of directors. 

Auditors 

A resolution proposing that Kingston Smith LLP be reappointed as auditors of the company will be put to the Annual General Meeting. 

So far as the Directors are aware, there is no relevant audit information of which the company’s auditors are unaware. The Directors 

have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information 

and to establish that the Company’s auditors are aware of that information. 

By order of the FTA Board 

1 March 2013 Jon Moxon – Honorary Treasurer 

FTA Board 2012 

President and Chairman 

S Oades 

Vice Presidents 

A P Burleton (resigned 30 May 2012) 

R J Jenkins 

I Veitch 

Other Members of the Board 

K A Appleton (appointed 21 June 2012) 

R J Ashworth (appointed 20 September 2012) 

V J Brickley (appointed 21 June 2012) 

A Ciaburro 

T H J de Pencier 

J E Entwistle (resigned 20 September 2012) 

A J Haines 

I Jones (resigned 21 June 2012) 

Honorary Treasurer 

J Coghlan (resigned 22 November 2012) 

J D Moxon (appointed 22 November 2012) 

D Morton (resigned 21 June 2012) 

A J Parker 

G Roberts 

G Scott (resigned 3 February 2012) 

I Stansfield (appointed 20 September 2012) 

P Watts 

J H Williams 

C M Woodhead (appointed 15 January 2013) 

Freight Transport Association Limited 

Statement of Directors’ Responsibilities 

The Directors are responsible for preparing the Annual 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 and 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 estimates that are reasonable and prudent 

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained 

in the financial statements 

• 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. 

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. Legislation 

in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

FTA Annual Accounts 2012 17

Independent Auditors’ Report to the Members of 


We have audited the financial statements of Freight Transport Association Limited for the year ended 31 December 2012 which 

comprise the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement, the Statement of Total Recognised Gains 

and Losses 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 the 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 17 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. 

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 read all the financial and non-financial information in the Directors’ Report 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 financial statements 

In our opinion the financial statements: 

• give a true and fair view of the state of the company’s affairs as at 31 December 2012 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 matter 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. 

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. 

Devonshire House, 60 Goswell Road 

London EC1M 7AD 

 

4 March 2013 

Janice Riches (Senior Statutory Auditor) 

for and on behalf of Kingston Smith LLP, Statutory Auditor 

18 


Balance Sheet 31 December 2012 

2012 2011 

Note £’000 £’000 £’000 £’000 

Fixed Assets: 

Tangible Assets 7 3,506 2,951 

Current Assets: 

Stock 1(iv) 220 241 

Debtors 8 5,758 4,796 

Cash at bank and in hand 3,000 3,026 

8,978 8,063 

Creditors: 

Amounts falling due within one year 9 6,068 4,025 

Net Current Assets 2,910 4,038 

Total Assets less Current Liabilities 6,416 6,989 

Creditors: amounts falling due after more 

than one year 

10 

39 – 

Net Assets Excluding Pension Liability 6,377 6,989 

Less Pension Scheme Liability 11 6,792 6,529 

(415) 460 

Reserves 

Accumulated Reserves: 

12(i) to (v) 

General reserve 6,377 6,989 

Pension reserve (6,792) (6,529) 

(415) 460 

Approved by the board and authorised for issue on 1 March 2013 

S Oades, President 

J D Moxon, Honorary Treasurer 

Company registration no: 00391957 


Income and Expenditure Account for the year 

ended 31 December 2012 


Note £’000 £’000 £’000 £’000 

Income 1(vi) and 2 23,478 23,655 

Direct Expenses 12,459 12,777 

Gross Surplus 11,019 10,878 

National Operating Expenses 3 9,630 9,741 

Trading Surplus 1,389 1,137 

Exceptional item – recovery of cash deposit 4(ii) 66 51 

Operating Surplus 4(i) 1,455 1,188 

Income from deposits 7 2 

Surplus on sale of Stirling office – 252 

Interest payable and similar charges 5 (5) _ 

Other Finance Expenditure 15 (205) (322) 

(203) (68) 

Surplus before taxation 1,252 1,120 

Taxation 6 7 – 

Surplus for the year 1,245 1,120 

Continuing Operations 

The company has made no acquisitions nor discontinued any operations within the meaning of Financial Reporting Standard 3 during 

the above two financial years. The income and operating result derive entirely from continuing operations. 

20 


Cash Flow Statement for the year ended 31 December 2012 


Note £’000 £’000 

Net cashflow inflow from operating activities 13(i) 875 478 

Return on investments and servicing of finance 13(ii) 2 2 

Capital expenditure and financial investment 13(iii) (868) (312) 

Net cash inflow before use of liquid resources and financing (9) 168 

Financing: 

Capital element of finance lease rental payment (35) – 

(Decrease)/increase in cash in the year 14 (26) 168 

Reconciliation of net cash flow to movements in net funds (note 14) 

(Decrease)/increase in cash in the year (26) 168 

Cash outflow from finance lease payments 35 – 

Change in net debt resulting from cash flows 9 168 

New finance leases (110) – 

Net funds at 1 January 2012 3,026 2,858 

Net funds at 31 December 2012 14 2,925 3,026 

Statement of Total Recognised Gains and Losses for the year ended 

31 December 2012 


Note £’000 £’000 

Surplus before transfer to Reserves 1,245 1,120 

Actuarial (loss) on pension scheme 15 (2,120) (922) 

Total recognised (losses)/gains relating to the year (875) 198 


Notes to the Accounts 31 December 2012 

1 Accounting policies 

(i) 

Accounting Convention 

These Accounts have been prepared under the historical cost convention. 

(ii) Compliance with Accounting Standards 

The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom 

Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated). 

(iii) Depreciation 

Depreciation is provided on an annual instalments basis over the expected useful lives of assets as follows: 

Freehold Buildings 50 years Furniture and Equipment 4 to 10 years 

Motor Vehicles 4 years Computers 3 to 5 years 

(iv) Stock 

Stock is valued at the lower of cost and net realisable value and is comprised of finished goods and goods for resale. 

(v) Taxation 

Taxation is provided on non-member income and capital gains only. 

(vi) Income 

Membership income is recognised in the month of renewal. All other income is recognised at the time the goods or 

services are provided. 

All turnover excludes value added tax. 

(vii) Pensions 

For the defined benefit pension scheme Operating Surplus is charged with the cost of providing pension benefits earned by 

employees in the year. The expected return on pension scheme assets less the interest on pension scheme liabilities is shown 

as other finance expenditure within the Income and Expenditure Account. 

Actuarial gains and losses arising in the year from the difference between actual and expected returns on pension scheme 

assets, experience gains and losses on pension scheme liabilities and the effects of changes in financial assumptions are 

included in the Statement of Total Recognised Gains and Losses. 

For the defined contribution scheme the amount charged to the Income and Expenditure account in respect of pension cost 

is the contributions payable in the year. 

(viii) Operating Leases 

Costs in respect of operating leases are charged to the Income and Expenditure account on a straight line basis over the 

term of the lease. 

(ix) Finance Leases 

Finance leases are capitalised at the lease’s inception at the lower of the fair value of the leased equipment and the present 

value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to 

achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are 

included in creditors. The interest element of the finance cost is charged to the Income and Expenditure account over the 

lease period so as to produce a constant periodic rate of interest for each period. Equipment acquired under finance leases 

is depreciated over the shorter of the asset’s useful life and the lease term. 

(x) Foreign Currency Translation 

Monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the balance sheet date. 

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. 

All differences are taken to the Income and Expenditure account. 

22 



2 Income 


£’000 £’000 

Membership fees 3,844 3,787 

Commercial activities 19,634 19,868 

23,478 23,655 

Geographical analysis 

United Kingdom 23,110 23,314 

Ireland 310 242 

Rest of world 58 99 

3 National Operating Expenses 

23,478 23,655 

The heading ‘Administration expenses’ which is specified in the Companies Act 2006 has been altered in favour of the heading 

‘National Operating Expenses’. The Directors consider that this heading more accurately describes the nature and substance of 

the expenses than that prescribed by the Companies Act 2006. 

4 Operating Surplus 

(i) 

The surplus for the year is derived after charging/(crediting): 


£’000 £’000 

Auditors’ remuneration in respect of: 

Statutory audit services 36 36 

Other non-audit services 14 12 

Depreciation: 

Owned assets 393 407 

Assets held under finance leases 37 – 

Profit on disposal of fixed assets (7) – 

Loss/(Gain) on foreign exchange transactions 5 (4) 

Operating lease payments: 

Land and buildings 108 80 

Other operating leases 885 950 

(ii) Exceptional item – Recovery of cash deposit 

At 31 December 2008, the company had £500,000 in a deposit account with the Icelandic bank, Kaupthing, Singer and 

Friedlander (KSF). On 8 October 2008, Kaupthing, Singer and Friedlander went into administration whereupon all deposits 

were frozen and no withdrawals were permitted. The company ranks as a non preferential creditor against KSF and is being 

dealt with in accordance with the Insolvency Act 1986. In the absence of any reliable information to substantiate how much 

of the deposit was likely to be recoverable, a provision of £500,000 was made at 31 December 2008 for the non-recovery 

of the entire deposit. During 2012, the company received £66,000 (2011: £51,000) from the administrators thus reducing 

the overall loss to £114,000 as at 31 December 2012. 



5 Employment Costs 


(i) Employee costs during the year amounted to: £’000 £’000 

Salaries and bonuses 12,301 12,364 

Social Security costs 1,252 1,247 

Defined Contribution pension costs 669 629 


(ii) The average number of employees during the year was: 

Operations 256 283 

National Operating Expenses 157 160 

Software development 6 4 

419 447 


(iii) Director Emoluments £’000 £’000 

Emoluments for qualifying services 213 98 

Company pension contributions to defined contribution schemes 24 8 

237 106 

6 Taxation 

Contribution schemes 

The number of directors for whom retirement benefits are accruing under defined contribution schemes amount to 1 (2011–1). 

Emoluments disclosed above include the following amounts paid to the highest paid director: 


£’000 £’000 

Emoluments for qualifying services 190 67 

Company pension contributions to defined contribution schemes 24 8 

214 75 


£’000 £’000 

UK Corporation tax at 20% (2011: 20.25%) 7 – 

Current tax charge 7 – 

Factors affecting the tax charge of the year 

The Association is liable for taxation on investment income and capital gains. In 2012 this amounted to £73,485 (2011: £53,342) 


£’000 £’000 

Taxable income multiplied by standard rate of UK corporation tax of 20% (2011: 20.25%) 15 11 

Effects of: 

Tax losses utilised in year (8) (11) 

Current tax charge 7 – 

24 



7 Tangible Assets 

Freehold 

Property 

Motor 

Vehicles 

Furniture and 

Equipment 

Computer 

Equipment 

Total 

£’000 £’000 £’000 £’000 £’000 

Cost 

Balance at 1 January 2012 1,921 42 2,089 2,848 6,900 

Additions – – – 985 985 

Disposals – (18) – – (18) 

Balance at 31 December 2012 1,921 24 2,089 3,833 7,867 

Depreciation 

Balance at 1 January 2012 870 42 983 2,054 3,949 

Charge for the year 37 – 168 225 430 

Disposals – (18) – – (18) 

Balance at 31 December 2012 907 24 1,151 2,279 4,361 

Net Book Value 31 December 2012 1,014 – 938 1,554 3,506 

Net Book Value 31 December 2011 1,051 – 1,106 794 2,951 

A charge created over the Association’s head office, Hermes House, St John’s Road, Tunbridge Wells, on 28 June 2002 in favour of the 

Trustees of the FTA Occupational Pension Plan was released on 19 December 2012. 

Included in freehold property is freehold land at cost of £29,085 (2011: £29,085) which is not depreciated. 

The net book value of £3,506,000 includes an amount of £75,556 (2011 – nil) in respect of assets under finance leases. 

8 Debtors 


£’000 £’000 

Debtors for goods and services 4,843 3,456 

Other debtors 405 459 

Due from FTA pension plan 2 1 

Prepayments and accrued income 508 880 

5,758 4,796 

Debtors: Amounts falling due after more than one year 

Other debtors include an amount of £300,107 due from FTA Ireland. This comprises a loan of £160,000 which is subject to 

interest and has fixed repayment terms and a further amount of £140,107. The repayment of the loan is scheduled to commence 

in October 2013. Amounts falling due after more than one year are £280,107. 

9 Creditors: Amounts falling due within one year 


£’000 £’000 

Trade creditors 1,158 870 

Other Creditors 1,300 – 

Corporation Tax 7 – 

Social Security and other taxes 991 1,035 

Obligations under finance leases (note 16) 36 – 

Accruals and deferred income: 

Vehicle and Tachograph Inspection Services 1,029 1,132 

Other member services 697 197 

General 850 791 

6,068 4,025 



10 Creditors: Amounts falling due after more than one year 


£’000 £’000 

Obligations under finance leases (note 16) 39 _ 

11 Pension Scheme Liability 

Provision has been made for the pension scheme deficit in the Financial Statements. 


£’000 £’000 

Deficit at start of year 6,529 6,997 

Cash contributions paid in the year (2,062) (1,712) 

Other Finance Expenditure 205 322 

Actuarial loss 2,120 922 

Deficit at end of year 6,792 6,529 

12 Reserves 

(i) 

General Reserve 

The Association is limited by guarantee and does not have any share capital. Annual surpluses or deficits are transferred to 

the General Reserve. 

(ii) Reconciliation of movements in shareholders’ funds 

Within the meaning of FRS3 the total of the Association’s General Reserve and Pension Reserve constitute ‘Shareholders 

funds’. The movements in the reserves are detailed below. 

(iii) General Reserve and Pension Reserve 


General Pension Total 

Reserve Reserve 

£’000 £’000 £’000 £’000 

Balance at 1 January 2012 6,989 (6,529) 460 262 

Surplus/(loss) for the year (612) 1,857 1,245 1,120 

Actuarial (loss)/gain – (2,120) (2,120) (922) 

Balance at 31 December 2012 6,377 (6,792) (415) 460 

(iv) Campaign Fund 

General reserves include income and expenditure on the Campaign Fund as follows: 


£’000 £’000 

Income 316 317 

Expenditure (322) (461) 

(Deficit) of expenditure over income (6) (144) 

Balance at 1 January 2012 1,005 1,149 

Balance at 31 December 2012 999 1,005 

Assets representing this Fund are held in Current Assets. 

Expenditure from this fund is specifically authorised by the FTA Board. 

(v) As at 31 December 2012, FTA held £51,219 (2011: £51,219) of guarantee deposits for TIR carnets and other organisations. 

These funds are not in the beneficial ownership of FTA and do not form part of FTA’s net assets. 

26 



13 Analysis of Cash Flows for headings netted in the Cash Flow Statement 


£’000 £’000 

(i) 

Reconciliation of operating surplus to net cash inflow/(outflow) from operating activities 

Operating surplus: 1,455 1,188 

Depreciation 430 407 

Decrease/(increase) in stocks 21 (53) 

(Increase)/decrease in Debtors (962) 505 

Increase in creditors 2,000 143 

Pension contributions paid (2,062) (1,712) 

Profit on disposal of fixed assets (7) – 

875 478 

(ii) Return on investments 

Interest received 7 2 

Interest paid (5) – 

2 2 

(iii) Capital expenditure 

Purchase of tangible fixed assets (875) (614) 

Sale of tangible fixed assets 7 302 

Net cash (outflow) for capital expenditure (868) (312) 

14 Analysis of changes in net funds 

At 

1 Jan 2012 

Cash 

flow 

Other noncash 

changes 

At 

31 Dec 2012 

£’000 £’000 £’000 £’000 

Cash at bank and in hand 3,026 (26) – 3,000 

Finance leases – 35 (110) (75) 

Net funds 3,026 (9) (110) 2,925 

Major non-cash transactions 

During the year the company entered into finance lease arrangements in respect of assets with a total capital value at the inception 

of the leases of £110,000. 

15 Pensions 

(i) 

Defined Benefit Scheme 

The Association operates a contributory pension scheme, which is voluntary. Entry was open to all members of staff who were 

over 20 and under 59 but the scheme was closed to new entrants on 1 January 2001 and to future accrual of benefits, other 

than required by law, on 30 June 2002. 

The scheme is of the funded defined benefit type, with its assets held in a separate trust. The most recent actuarial valuation, 

upon which the amounts included in these accounts are based, was carried out at 31 March 2010. Using this as a basis, the 

valuation has been updated to 31 December 2012 by a qualified actuary. As required by FRS17, the defined benefit liabilities 

have been measured using the projected unit method. 

Contributions during the year ended 31 December 2012 amounted to £2,062,000 (2011: £1,712,000). Payments for future 

years under the current schedule of contributions will be £1,713,960 for 2013 together with the expenses of the scheme, 

which will vary in amount from year to year. 



15 Pensions (continued) 

(ii) Changes in present value of scheme liabilities 


£’000 £’000 

Scheme liabilities at 1 January 53,807 51,239 

Interest cost 2,547 2,753 

Net benefits paid from scheme assets (2,606) (2,394) 

Actuarial losses on scheme liabilities 3,269 2,209 

Scheme liabilities at 31 December 57,017 53,807 


The total actuarial loss of £3,269,000 on the liabilities is analysed as follows £’000 £’000 

Experience loss/(gain) on scheme liabilities 1 (1) 

Loss from change in other assumptions 3,268 2,210 

Total loss on scheme liabilities 3,269 2,209 

(iii) Changes in fair value of scheme assets 


£’000 £’000 

Fair value of scheme assets at 1 January 47,278 44,242 

Expected return on assets 2,342 2,431 

Employer contributions 2,062 1,712 

Net benefits paid from scheme assets (2,606) (2,394) 

Actuarial gains on assets 1,149 1,287 

Fair value of scheme assets at 31 December 50,225 47,278 

(iv) Income and expenditure account disclosure 


The amounts recognised in the Income and Expenditure Account are as follows: £’000 £’000 

Expected return on assets 2,342 2,431 

Interest cost (2,547) (2,753) 

Charged to other finance expenditure (205) (322) 

The actual return on scheme assets net of expenses for the year was a gain of £3,591,000 (2011 – £3,830,000). 

(v) Statement of total recognised gains and losses (STRGL) 


£’000 £’000 

Actuarial (losses) arising during the year (2,120) (922) 

Total amount recognised in the STRGL during the year (2,120) (922) 

Cumulative actuarial (loss) recognised in the STRGL at the year end (6,191) (4,071) 

28 




(vi) Assumptions 

The principal assumptions used by the actuary were: 2011 2011 

Discount rate for scheme liabilities 4.40% 4.85% 

Rate of increase in salaries N/A N/A 

Rate of increase on fixed pensions in payment 5.00% 5.00% 

Rate of increase on LPI pensions in payment 2.80% 2.90% 

Inflation (RPI) 2.80% 2.90% 

Revaluation in deferment (RPI) 2.30% 2.00% 

The mortality assumptions are based on standard mortality tables which allow for future mortality improvements. 

The actuary assumed that pre and post retirement mortality is in line with standard tables at 100% of S1PA year of use with 

CMI_2009 [1%] projections (2011 – 100% of S1PA year of use with CMI_2009 [1%] projections). Under this assumption the 

average life expectancy of males aged 65 is 22 years and of females aged 65 is 24 years. 100% of members are assumed to 

take their maximum tax free cash lump sum (2011: 100%). 

The overall expected rate of return on assets is determined as the average of the expected return of each major asset, 

weighted by the assets allocated to each class. 

(vii) Development of net balance sheet position 


£’000 £’000 

Fair value of scheme assets 50,225 47,278 

Present value of funded defined benefit obligations (57,017) (53,807) 

Pension deficit recognised in the Balance Sheet (6,792) (6,529) 

Scheme asset information 


£’000 £’000 

Equities 20,090 19,384 

Gilts 17,579 14,183 

Bonds 12,054 13,711 

Other 502 – 

Fair value of assets 50,225 47,278 

(viii) Five year history of assets, liabilities and deficit in the scheme 

2012 2011 2010 2009 2008 

£’000 £’000 £’000 £,000 £’000 

Experience gains/(losses) on scheme assets 1,149 1,287 2,151 1,594 (4,765) 

Experience gains/(losses) on scheme liabilities (3,269) (2,209) (300) (6,469) 5,064 

Deficit 

Present value of defined benefit obligation (57,017) (53,807) (51,239) (50,423) (43,573) 

Fair value of scheme assets 50,225 47,278 44,242 40,040 36,652 

(Deficit) (6,792) (6,529) (6,997) (10,383) (6,921) 




(ix) Defined Contribution Scheme 

The Association also operates defined contribution schemes for employees. Pension costs for the defined contribution 

schemes are charged to the Income and Expenditure account in the year in which they become payable. The pension cost 

for the year in respect of the defined contribution schemes was £668,956 (2011: £625,820). 

Included in the general accruals are pension contributions amounting to £81,000 (2011: £81,000). 

16 Commitments 

(i) 

Operating leases 

At 31 December 2012 there were the following annual commitments under non-cancellable operating leases: 

Operating leases that expire: 

Land and buildings 

Other 

2012 2011 2012 2011 

£’000 £’000 £’000 £’000 

Within one year 20 20 50 92 

In second to fifth years 85 76 677 422 

105 96 727 514 

(ii) Finance Leases 

At 31 December 2012 there were the following obligations under finance leases included in the financial statements as set 

out below: 


£’000 £’000 

Within one year 36 – 

In second to fifth years 39 – 

(iii) Capital Commitments 

As at 31 December 2012 there was a commitment to purchase equipment valued at £nil (2011: £155,000). 

17 Contingent Liability 

75 – 

(i) 

In 2010, the company set up an employee long-term incentive plan for the four executive ‘directors’. The employees were 

due a payment under the plan if certain targets were met by 2012. During 2011, the long-term incentive plan was updated 

and extended to 2014. The directors consider that at 31 December 2012, the targets remain challenging and therefore do 

not feel it is appropriate to include a provision in the financial statements for payments that may fall due in 2015. 

30 


2012: A year in FTA Publications 


Head Office 

Tunbridge 

Wells 

Hermes House Telephone: 01892 526171 

St John’s Road Fax: 01892 534989 

Tunbridge Wells 

Kent TN4 9UZ 

Leamington 

Spa 

Hermes House Telephone: 01926 450020 

20 Coventry Road Fax: 01926 452765 

Cubbington 

Leamington Spa 

Warwickshire CV32 7JN 

Leeds 

Hermes House Telephone: 0113 258 9861 

2 Manor Road Fax: 0113 258 6501 

Horsforth 

Leeds LS18 4DX 

Stirling 

Hermes Suite Telephone: 01786 457500 

Pavilion 1, Castlecraig Business Park Fax: 01786 450412 

Players Road 

Stirling FK7 7SH 

Cardiff 

Regus House Telephone: 029 2050 4070 

Falcon Drive Fax: 029 2050 4224 

Cardiff Bay 

Cardiff Cf10 4ru 

Belfast 

109 Airport Road West Telephone: 028 9046 6699 

Belfast Bt3 9ed Fax: 028 9046 6690 

Dublin 

FTA Ireland Telephone: 01 8220040 

Office 5, Unit 104 Fax: 01 8220045 

Coolmine Business Park 

Blanchardstown, Dublin 15 

Republic of Ireland 

Brussels 

14 Rue de la Science Telephone: 00 322 231 0321 

1040 Brussels Fax: 00 322 230 4140 

Belgium 


Hermes House 

St John’s Road 

Tunbridge Wells 

Kent 

TN4 9UZ 

Telephone: 01892 526171 

Fax: 01892 534989 

Website: www.fta.co.uk 

Registered in England Number 391957 

04.13/TdP/DW

FTA Annual Report 2012 - Freight Transport Association

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