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The School continues to be financially Finally, it is worth highlighting that the investment portfolio
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sound, targeting breakeven or small School provided £4.9 million for the first The School’s investment portfolio is
operating surpluses each year. The School time last year against the Staff Pension managed by an external fund manager.
achieved a small like for like surplus in Scheme deficit. Revalued under FRS17 Investment income totalling £0.9
2007 (compared to 2006) before the at 31 July 2007 the deficit has reduced million is included in the income and
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inclusion of a one-off charge of £2.2 million to £2.9 million. expenditure account for the year, of
in 2007 resulting from an increase to the which £0.7 million was reinvested in
cash in rate paid to faculty for overteaching Unusually for a top ten business school, the investment portfolio itself.
from 1 August 2007. we still have no major endowment but
continue to invest in its growth. Fundraising The market value of the portfolio at
All overteaching earned but not cashed in generated £5.8 million this year an the year end was £32 million compared
at 31 July 2007 was revalued at the new improvement of £1.7 million compared to £30 million at last year end. The
rate. The new overteaching rate replaced to last year. Of this, £0.7 million came performance of the portfolio is overviewed
a rate last agreed in 1998. As the School’s from corporate partners and sponsorship, by the Investment Committee. The net
programme portfolio and student numbers £0.6 million in unrestricted donations return on funds during the year was in
continue to grow, the demand for our world- and £2.8 million in restricted donations line with market benchmarks.
class faculty to teach is ever increasing. to add to our endowment.
Increasing the rate encourages our faculty The future
to commit more of their time to teaching Reserves It continues to be the Vision of London
our students. Should all the overteaching General reserves reduced by £2 million. Business School to be the pre-eminent
accrued be used to support a leave of Restricted reserves however increased global business school. Increases in
absence at a future date there would be by £2.1 million and the pension liability academic fees in 2007 are planned to
Treasurer’s report
further costs to the School of £3.8 million. reserve decreased by £1.9 million. continue into 2008 as we continue to
However, this possibility is considered maintain class sizes and to grow our
remote and therefore has not been included Capital projects Executive Education Open Programmes
in the Financial Statements. The School continues to require investment portfolio, our Finance Programmes
in its estate and facilities. During the year portfolio and our Executive Education
The other key movement year-on-year to 31 July 2007 the School spent £8 million Custom Programmes.
was the inclusion of a realised gain against a planned spend of £8 million
on investments of £1.9 million within on capital projects. Student and faculty These increases in academic fees will,
the surplus on operations in 2006. No numbers are increasing. The School’s however, be matched by continuing
investments were sold in 2007. Rather, physical capacity needs to be continually investment in faculty and in the
an unrealised gain of £1.9 million has expanded and the quality improved to School’s estate.
Results for the year been included in the total recognised meet demand.
gains for the year in 2007. Investments in External Relations and
Specifically, the School invested in fundraising will continue as we strengthen
A summary of the School’s results for the year to 31 July 2007 is as follows: Elsewhere, Degree Programme revenues upgrading the Executive Education relationships with alumni, global business

continue to grow. Executive Education Open bedrooms (£2.8 million); in adding partners and other similar institutions to
00 006
Programmes revenue continues to grow research facilities (£2.2 million funded by build global partnerships. Our endowment
£’000 £’000
significantly. Revenues from the School’s capital grants of £1.2 million); in general is key to greater success and we will
Income 85,745 83,762
Custom Programmes dipped slightly in the improvement of the estate (£1.8 million); continue to reach out to our community
Expenditure (87,583) (79,991)
year but are now growing again. and in ISD (£0.9 million funded by capital to build this.
(DEFiCiT) / SURPLUS ON OPERATiONS (1,838) 3,1
grants of £0.5 million). This resulted in net

Staff and faculty costs continue to rise. capital expenditure of £6 million in the year.
Pension fund actuarial gain / (loss) 1,961 (4,907)
The School has, however, managed to Depreciation of £5 million was charged
Revaluation of investments 1,866 (7)
maintain or reduce overhead costs due to resulting in a year-on-year growth in fixed Catherine Webster
TOTAL RECOGNiSED GAiNS /
better procurement. This remains a priority assets of £3 million. Treasurer
(LOSSES) FOR THE YEAR 1,8 (1,143)
for 2007/2008. 21 November 2007
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