Co-operative Press

Limited

Directors’ Report &

Accounts

Year ended 28th February 2010

Statement of Aims

VISION

• To be the best news service and forum in the co-operative, mutual and social enterprise
sectors

MISSION STATEMENT

• To provide a sustainable, high quality co-operative news service

• To provide a forum for debate and discussion
• To serve our colleagues, members and affiliates from all sectors of enterprise and
geographical regions with fair and honest high quality news and information
• To promote the growth of the co-operative, mutual and social enterprise sectors in all we do
• To provide a valued service to meet the needs and expectations of our key stakeholders

PURPOSE

• To promote the co-operative, mutual and social enterprise sectors

ROLE

• To provide news, views, opinion, features, discussions and debates for the co-operative,
mutual and
social enterprise sectors
• To celebrate our co-operative and mutual advantage, reinforcing our message to those inside
and
promoting it to those outside the movement

VALUES AND PRINCIPLES

• Professional
• Fair, balanced and diverse
• Leading and developing
• Pro-active and entrepreneurial
 SOCIETY REGISTRATION NUMBER 1585R

CO-OPERATIVE PRESS LIMITED

DIRECTORS' REPORT & ACCOUNTS

28 FEBRUARY 2010

ROBINSONS
Chartered Accountants & Registered Auditors
7 Portland Terrace
Jesmond
Newcastle upon Tyne
NE2 1QQ
 CO-OPERATIVE PRESS LIMITED

DIRECTORS REPORT & ACCOUNTS

YEAR ENDED 28 FEBRUARY 2010

CONTENTS
Page

Society information 1

Agenda 2010 Annual Meeting 2

Minutes of Annual General Meeting on 27 June 2009 3

Directors' Report to the Members 4-5

Independent Auditor's Report to the Members 6-7

Profit and loss account 8

Balance sheet 9

Notes to the financial statements 10 - 15

The following pages do not form part of the statutory financial statements

Detailed profit and loss account 16

Directors' other relevent directorships 17

 CO-OPERATIVE PRESS LIMITED

SOCIETY INFORMATION

Society secretary Ray Henderson

Registered office Holyoake House

Hanover Street
Manchester
M60 0AS

Auditors Robinsons
Chartered Accountants & Registered Audtiors
7 Portland Terrace
Jesmond
Newcastle upon Tyne
NE2 1QQ

Bankers The Co-operative Bank plc

1 Balloon Street
Manchester
M60 4EP

Board of directors Erskine Holmes (Chair)

Elected by members of Co-operative Press Limited

Martin Alder (Vice Chair)

The Midcounties Co-operative

Jenny Barnes
Co-operative Group - Head Office

Bhagwanjii Chohan
Co-operative Group - South East Region

Geraint Day
Co-opted to the Board from the individual members
of the Co-operative Press Limited

Elaine Dean
Midlands Co-operative Society

Chris Fegan
Co-opted by the Board from the Corporate members
of the Co-operative Press Limited

Terry Morton
Co-operative Group - North Region

David Pownall
Co-operative Group - Head Office

Margaret Tranter
Lincolnshire Co-operative

Page 1
 CO-OPERATIVE PRESS LIMITED

AGENDA 2010 ANNUAL MEETING

1. Minutes of 2009 Annual Meeting.

2. Directors’ Report and Accounts for the year ended 28th February 2010.

3. Dividend on Share Capital – To consider and, if thought fit, to approve the following resolution: “It
is resolved that no dividend be paid on share capital for the year ended 28th February 2010.”

4. Directors Fees –To consider and, if thought fit, to approve the following resolution: “ It is resolved that
the directors’ fees remain at the same level for the next 12 months, namely: chair, £600 per annum, other
directors £500 per annum”

5. Appointment of Auditors – To consider and, if thought fit, to approve the following resolution: “It is
resolved that Robinsons Chartered Accountants be appointed auditors of the Society to hold office from
the conclusion of this meeting until the conclusion of the next annual general meeting at which accounts
are laid before the Society at a remuneration to be fixed by the directors”.

6. Resolution and amendments:-

Special General Meeting

A special general meeting will be held to consider and, if appropriate to approve the following rule
changes:-

Delete current Rule 33 :-

No director shall serve for more than six consecutive years. Retiring directors who have served the
maximum period must stand down for at least one year before they shall be eligible for further election or
appointment.

Add New Rule 33:-

No director shall serve for more than nine consecutive years. Retiring directors who have served the
maximum period must stand down for at least one year before they shall be eligible for further election or
appointment.

Delete current Rule 22 :-

Every member shall be entitled to one vote by virtue of membership, one for every £50.00 or part thereof
of share capital and one for every £100.00 or part thereof of purchases made from the Society, for the
previous financial year, calculated in line with regulations laid down by the directors from time to time.

Add New Rule 22:-

Every member shall be entitled to one vote by virtue of membership, one for every £50.00 or part thereof
of share capital and one for every £100.00 or part thereof of purchases made from the Society, for the
previous financial year, calculated in line with regulations laid down by the directors from time to time. This
provision does not apply to individual members when voting to elect a representative to the Board, where
the voting entitlement shall be on the basis of one member one vote.

Page 2
 CO-OPERATIVE PRESS LIMITED

MINUTES OF ANNUAL GENERAL MEETING ON 27th JUNE 2009

1. Minutes of 2008 Annual Meeting

Resolved – that the minutes of the AGM held on 28th June 2008 be accepted as a correct record.

2. Directors’ Report for the year ended 28th February 2009

Resolved – that the Directors’ Report for the year ended 28th February 2009 be received and adopted.

3. Accounts and Auditors’ report for the year ended 28 February 2009
Resolved – that the Accounts and Auditors’ Report for the year ended 28th February 2009 be approved
and accepted.

4. Dividend on Share Capital

Resolved – that no dividend be paid for the year ended 28th February 2009.

5. Directors’ Fees
Resolved – that directors’ fees to remain at the same level for the following year.

6. Appointment of Auditors
To consider and, if thought fit, to approve the following resolution: “It is resolved that Robinsons
Chartered Accountants and Registered Auditors be appointed auditors of the society to hold office from
the conclusion of this meeting until the conclusion of the next annual general meeting at which accounts
are laid before the Society at a remuneration to be fixed by the directors.”
This proposal was agreed.

7. Resolutions and amendments

The following resolution was proposed by George Conchie.

“All members of the Co-operative Press Board shall be an individual member of the Co-operative Press
Limited.”

The proposal was agreed in principle, although the proposer was not present at the
meeting.

Special General Meeting

A special general meeting was held to consider and, if appropriate to approve the following rule change:-

Rule 45
The Directors shall meet at such times as they may determine and any four shall form a quorum; they
shall in all things act for and in the Society’s name; and all acts and orders under the powers delegated
to them shall have the like force and effect as if they were the acts and orders of the majority of the
Society at a members’ meeting.

Now to read
The directors to meet at such times as they may determine and a majority shall form a quorum; they shall
in all things act for and in the Society’s name; and all acts and orders under the powers delegated to
them shall have the like force and effect as if they were the acts and orders of the majority of the Society
at a members’ meeting.

The rule change was agreed.

Page 3
 CO-OPERATIVE PRESS LIMITED

DIRECTORS' REPORT TO THE MEMBERS

YEAR ENDED 28 FEBRUARY 2010

Financial Result
The Directors are reporting a small loss in the current year arising from a continuation of the problems
identified in the last annual report. We are working to rebuild our advertising revenue and find a source
of advertising revenue that does not bring us into competition with ABC Media which is employed by
the Co-operative Group to enable marketing companies to advertise across the Group’s entire
business.

We have of course been generously supported by the Group and the Independent Societies through
bulk purchases, sponsored pages and advertising and it is true to say that the paper can only continue
to survive through the purchase and distribution of some 6,000 copies to the membership and staff of
those societies. Development of a new market of individual subscribers has proved difficult to achieve
and the figure for individual subscribers stands at 315, an increase of 15 on last year

Mergers, amalgamations and transfers of engagements generally impact adversely on our sales and
even the arrival of Britannia only added 40 copies to our sales. In the case of the United Society joining
The Co-operative Group we were given the benefit of a 3 year guarantee of financial support to provide
us with the same income as we had from the two separate societies. We have sought to renew this
support for another 3 years with The Group V&P National Committee to allow us to develop sales,
continue to improve the paper and provide an up to date news service through our Web site, Face
Book and Twitter. We also make maximum use of access to the sites of other similar organisations in
the wider social economy.

A Strategy for Change

We spent a full day on what our strategy should be, to ensure that the printed paper is read and our
web based news service complements it and reaches the growing audience of people who prefer a
web based news service which they can instantly share with others. A major initiative with the Group
will lead us to target new active members, with the assistance of Regional officers. This will be piloted
by the North Region. At the same time individual directors of the News will be seeking meetings with the
boards of the Independent societies to urge them to work with us on similar schemes.

Staffing
The paper continues to be produced by two full time journalists and one admin officer, complemented
by freelance contributors. A tight ship you could say. We also have our finances prudently managed
by the staff of Co-operatives UK. All achieved from a modest office in Holyoake House where we
intend to remain to see the development of the The Group’s new iconic headquarters.

Directors
As Chair of Co-operative Press Board I would also like to record my thanks to fellow directors who are
willingly taking on duties beyond those of board service to ensure that The Press survives as a society
to provide a guarantee to the movement that transparency will be a reality in the affairs of the
movement and not something to which we pay lip service. For the record our editorial subcommittee
only met once during the year and upheld the submission made by a member. Possibly we will be
more successful in being controversial next year.

/continued…

Page 4
 CO-OPERATIVE PRESS LIMITED

DIRECTORS' REPORT TO THE MEMBERS

YEAR ENDED 28 FEBRUARY 2010

Internal Control
We are complying with the requirements of the Co-operative UK Corporate Governance Code of
Best Practice that are relevant to us.

STATEMENT OF RESPONSIBILITIES OF THE DIRECTORS

The Directors are responsible for preparing the Annual Report and the financial statements in
accordance with applicable law and regulations.

Industrial and Provident Society 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). The financial statements are required by law to give a tru
and fair view of the state of affairs of the society and of the profit or loss for that period. In preparing
those 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; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume
that the society will continue in operation.

The Directors are responsible for maintaining satisfactory systems of internal control and for keeping
proper accounting records that disclose with reasonable accuracy at any time the financial position o
the society and enable them to ensure that the financial statements comply with the Industrial and
Provident Societies Act 1965 and the Friendly and Industrial and Provident Societies Act 1968. They
are also responsible for safeguarding the assets of the society and hence for taking reasonable step
for the prevention and detection of fraud and other irregularities.

Registered office: Signed on behalf of the officers

Holyoake House
Hanover Street
Manchester
M60 0AS

Ray Henderson Erskine Holmes Martin Alder

Secretary Chair Vice-Chair

Approved by the Directors on 22 April 2010

Page 5
 CO-OPERATIVE PRESS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

CO-OPERATIVE PRESS LIMITED

YEAR ENDED 28 FEBRUARY 2010

We have audited the financial statements of Co-operative Press Limited for the year ended 28 February
2010 which comprise the Revenue Account, the Society Balance Sheet, and the related notes. These
financial statements have been prepared in accordance with the Financial Reporting Standard for
Smaller Entities (effective April 2008) and on the basis of the accounting policies set out therein.

This report is made solely to the society's members, as a body, in accordance with section 9 of the
Friendly and Industrial and Provident Societies Act 1968. Our audit work has been undertaken so that
we might state to the society's members those matters we are required to state to them in an auditor's
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the society and the society's members as a body, for our audit work,
for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITOR

The Directors' responsibilities for preparing the financial statements in accordance with applicable law
and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)
are set out in the Statement of Responsibilities of the Directors.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory
requirements and International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view and are
properly prepared in accordance with the Industrial and Provident Societies Act 1965 to 2002. We
also report to you whether in our opinion the information given in the Report of the Directors is
consistent with the financial statements.

In addition we report to you if, in our opinion, the society has not kept proper accounting records, if a
satisfactory system of internal control has not been established and maintained, or if we have not
received all the information and explanations we require for our audit, or if information required by law
regarding officers' remuneration or transactions with the society is not disclosed.

We read the Report of the Directors and consider the implications for our report if we become aware of
any apparent misstatements within it.

BASIS OF AUDIT OPINION

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland)
issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence
relevant to the amounts and disclosures in the financial statements. It also includes an assessment of
the significant estimates and judgements made by the Directors in the preparation of the financial
statements, and of whether the accounting policies are appropriate to the society's circumstances,
consistently applied and adequately disclosed.

Page 6
 CO-OPERATIVE PRESS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

CO-OPERATIVE PRESS LIMITED (continued)

YEAR ENDED 28 FEBRUARY 2010

We planned and performed our audit so as to obtain all the information and explanations which we
considered necessary in order to provide us with sufficient evidence to give reasonable assurance that
the financial statements are free from material misstatements, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation o
information in the financial statements.

OPINION
In our opinion:

• the financial statements give a true and fair view, in accordance with United Kingdom Generally
Accepted Accounting Practice applicable to Smaller Entitites, of the state of the society's
affairs as at 28 February 2010 and of its loss for the year then ended;

• the financial statements have been properly prepared in accordance with the Industrial and
Provident Societies Act 1965 to 2002;

• the information given in the Report of the Directors is consistent with the financial statements.

ROBINSONS
Chartered Accountants and Registered Auditors
7 Portland Terrace
Jesmond
Newcastle upon Tyne
NE2 1QQ

22 April 2010

Page 7
 CO-OPERATIVE PRESS LIMITED

REVENUE ACCOUNT

YEAR ENDED 28 FEBRUARY 2010

2010 2009
Notes £ £

TURNOVER 2 286,357 13,741

Cost of sales 3 (220,839) (237,942)

GROSS PROFIT 65,518 75,799

Overheads (76,687) (75,373)

OPERATING (LOSS)/PROFIT 4 (11,169) 426

Interest receivable 3,708 14,805

(LOSS)/PROFIT ON ORDINARY ACTIVITIES

BEFORE TAXATION (7,461) 15,231

TAXATION 6 - -

(LOSS)/PROFIT FOR THE FINANCIAL YEAR 15 (7,461) 15,231

The above relates entirely to continuing operations and represents the total recognised gains and
losses for the year.

The notes on pages 10 to 15 form part of these financial statements.

Page 8
 CO-OPERATIVE PRESS LIMITED

BALANCE SHEET

28 FEBRUARY 2010

Notes 2010 2009

£ £ £ £
FIXED ASSETS
Tangible assets 7 7,157 10,975
Investments 8 224,683 24,353

231,840 35,328
CURRENT ASSETS
Debtors 9 28,746 71,910
Investments 10 198,928 373,948
Cash at bank 30,055 30,847

257,729 476,705
CREDITORS: amounts falling due
within one year 11 (41,385) (59,498)

NET CURRENT ASSETS 216,344 417,207

TOTAL ASSETS LESS CURRENT LIABILITIES 448,184 452,535

CAPITAL AND RESERVES

Called-up share capital 14 59,299 56,189
Revenue reserves 15 388,885 396,346

SHAREHOLDERS' FUNDS 448,184 452,535

These financial statements have been prepared in accordance with Financial Reporting Standard
for Smaller Entities (effective April 2008)

These financial statements were approved by the Directors and authorised for issue on
22 April 2010 and were signed on their behalf by:-

Ray Henderson Erskine Holmes Martin Alder

Secretary Chair Vice Chair

Page 9
 CO-OPERATIVE PRESS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 28 FEBRUARY 2010

1. ACCOUNTING POLICIES
Basis of accounting
The financial statements have been prepared under the historical cost convention and in
accordance with the Financial Reporting Standard for Smaller Entitites (effective April 2008).

Cash flow statement

The Directors have taken advantage of the exemption in Financial Reporting Standard for
Smaller Entities (effective April 2008) from including a cash flow statement in the financial
statements on the grounds that the society is small.

Turnover
All income is shown exclusive of value added tax.
Sales of the Co-op News are accounted for on an accruals basis. Revenue from advertising and
sponsorship represents the amounts invoiced for space reserved in the Co-op News during the
year and is recognised as income when the advertisement is featured in the publication.

Fixed assets
All fixed assets are stated at cost less depreciation.

Investment income
Interest on investments is included on an accruals basis.

Depreciation
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual
value over the useful economic life of that asset as follows:-

Fixtures & Office Equipment 20% pa

Motor Vehicles 25% pa

Pension costs
Separate individual pension arrangements have been made for two members of staff (2009 - 2)
on a defined contribution basis. These pensions are separately administered by C.I.S.
Additionally a Group Stakeholder Pension is available to all current staff members, also
administered by C.I.S. but with no contributions from the employer. The cost is recognised
in the Revenue Account as incurred.

Repair expenditure
Repair expenditure is charged to the Revenue Account in the year that the cost is
incurred.

Taxation
Current - Provision is made, where appropriate, for any liability due on results to date at the
appropriate rate.

Deferred - Deferred tax is provided in full on an undiscounted basis. However, deferred tax
assets are only recognised in the accounts where there is persuasive and reliable evidence
that there will be suitable taxable profits in the future.

Page 10
 CO-OPERATIVE PRESS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 28 FEBRUARY 2010

2010 2009
£ £
2. TURNOVER
Co-operative News Sales 147,116 166,895
Advertising and Sponsorship 138,553 145,801
Other income 688 1,045
286,357 313,741

2010 2009
£ £
3. COST OF SALES
Personnel 128,763 122,273
Printing costs 80,201 104,882
Other costs 11,875 10,787
220,839 237,942

2010 2009
£ £
4. OPERATING (LOSS)/ PROFIT
Operating (loss)/profit is stated after charging:

Legal and professional fees 23,000 23,846

Depreciation of owned fixed assets 4,210 4,270
Directors fees 5,100 2,667
Directors expenses 8,637 7,361
Auditors' remuneration - Audit 3,750 4,160
- Others 1,500 1,850
Subscriptions 588 478

5. PARTICULARS OF EMPLOYEES
The average number of persons employed by the society during the year was 4 (2009 - 4)
The aggregate payroll for these persons was as follows
2010 2009
£ £
Wages and salaries 110,418 106,081
Social security costs 11,112 11,205
Pension costs 4,103 4,147
Other costs 3,130 840
128,763 122,273

The remuneratioin of the highest paid employee is as follows:-

Salary 43,780 43,408

Taxable benefits 3,020 3,020
46,800 46,428
Pensions - contributions 2,626 2,604
49,426 49,032

Page 11
 CO-OPERATIVE PRESS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 28 FEBRUARY 2010

2010 2009
£ £
6. TAXATION
UK Corporation Tax
Current tax

(Loss)/Profit on ordinary activities before taxation (7,461) 15,231

Tax liability for the current year based on the

(loss)/profit for the year - -

A deferred tax asset arises as a result of accumulated trading tax losses brought forward from
previous years and to be carried forward.

The deferred tax asset has not been recognised in the financial statements on the basis that the
Society is unlikely to generate sufficient taxable profits against which the asset can be offset in the
foreseeable future.

7. TANGIBLE FIXED ASSETS

Fixtures
& Office Motor
Equipment Vehicles Total
£ £ £
COST
At 1 March 2009 34,110 13,806 47,916
Additions 392 - 392
At 28 February 2010 34,502 13,806 48,308

DEPRECIATION
At 1 March 2009 31,830 5,111 36,941
Charge for the year 759 3,451 4,210
At 28 February 2010 32,589 8,562 41,151

NET BOOK VALUE

At 28 February 2010 1,913 5,244 7,157
At 28 February 2009 2,280 8,695 10,975

Capital commitments
As at 28 February 2010 there were no capital commitments (2009 - £nil).
Capital expenditure authorised but not committed amounts to £nil (2009 - £nil).

Page 12
 CO-OPERATIVE PRESS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 28 FEBRUARY 2010

8. INVESTMENTS
Other
Gilsland Industrial
Co-op Spa & Provident
Group Limited Society
Shares Investment Shares Total
£ £ £ £
COST
As at 1 March 2009 14,379 - 9,974 24,353
Amounts invested - 200,000 330 200,330
Amounts withdrawn - - - -
As at 28 February 2010 14,379 200,000 10,304 224,683

NET BOOK VALUE

At 28 February 2010 14,379 200,000 10,304 224,683
At 28 February 2009 14,379 - 9,974 24,353

2010 2009
£ £
9. DEBTORS
Trade debtors 21,847 67,057
Other debtors 6,899 4,853
28,746 71,910

Trade debtors are shown after making a provision for bad debts of £nil (2009 - £nil)

2010 2009
£ £
10. INVESTMENTS
Investment in Co-operative Group Limited 198,928 373,948

2010 2009
£ £
11. CREDITORS: Amounts falling due within one year

Trade creditors 10,090 9,245

Other creditors including taxation:
VAT 8,201 6,155
Accruals and deferred income 23,094 44,098
41,385 59,498

Page 13
 CO-OPERATIVE PRESS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 28 FEBRUARY 2010

12. RELATED PARTY TRANSACTIONS

The Society's members include consumer co-operative societies and trade unions who in aggregate
own the majority of shares with rights attaching as described in note 14. Due to the nature of the
Society's operations, transactions take place with these organisations at arms length on normal
trading terms.

The Society's members include Co-operative Group Limited. The total sales to its members during
the year were:-
2010 2009
£ £
Co-operative Group Limited 160,482 153,761
Other members 86,562 88,461
247,044 242,222

The total amount due from these members in respect of such sales as at the balance sheet date
was:-
2010 2009
£ £
Co-operative Group Limited 15,680 11,562
Other members 7,923 15,865
23,603 27,427

Financial Reporting Standard 8 requires disclosures of any entity which exercises significant control
over the Society. For this purpose, significant control represents 20% or more of the voting rights.
The Co-op Group Limited has voting rights of 62% (2009 - 63%), although votes are cast by Co-op
Group Regions on an individual basis, the largest of which is 11% (2009 - 11%).

The Board comprises of four representatives nominated from the Co-op Group Limited and one
nominated from Co-operatives UK. In addition there are six other possible appointments who are
selected by ballot based on voting rights allocated in accordance with the Rules.

Co-operatives UK Limited provides accounting services to the Society. The fee for the year was
£23,000 (2009 - £21,504). The balances owed by and to Co-operatives UK Limited at the year
end were £54 and £3,014 respectively (2009 - £27 and £503).

13. PENSIONS
The Society has individual pension arrangements for two employees. The arrangements are on a
defined contributions basis.

The contributions for the period were £4,103 (2009 - £4,147).

The Society continues to pay pensions which were granted by the Board of Directors which
amounted to £228 (2009 - £228).

Page 14
 CO-OPERATIVE PRESS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 28 FEBRUARY 2010

14. SHARE CAPITAL

From the date of the Society's incorporation until 29 July 2004 the Society's members were
corporate members only. After 29 July 2004 membership was also offered to individuals.

Authorised by the Rules prior to 29 July 2004

Nominal value of 10p per share, minimum shareholding five shares, maximum shareholding as
permitted by law.

Authorised by the Rules for shares issued after 29 July 2004

Nominal value of £10 per share, minimum shareholding one share, maximum shareholding as
permitted by law.

Shares are transferable but not withdrawable.

Each member is entitled to one vote by virtue of membership, one vote for every £50 or part thereof
of share capital and one vote for every £100 or part thereof of purchases made from the society
for the previous year calculated in line with regulations laid down by the directors from time to time.

If in the event of a solvent winding up of the Society there remain, after all liabilities have been
settled and the repayment of paid-up share capital, any assets whatsoever, such assets will be
transferred to one or more societies in membership of Co-operatives UK Limited having the same
or similar rule provisions as regards surplus distribution as the rules of the Society, as may be
determined by the members at any ordinary or special meeting. If not so transferred, the assets
will be transferred to Co-operatives UK Limited.
2010 2009
£ £
At 1 March 2009 56,189 55,299
Movements during the year - net 3,110 890
At 28 February 2010 59,299 56,189

Amounts presented in equity 59,299 56,189

2010 2009
£ £
15. REVENUE RESERVES
Balance brought forward 396,346 381,115
(Loss)/profit for the financial year (7,461) 15,231
Balance carried forward 388,885 396,346

Page 15
 CO-OPERATIVE PRESS LIMITED

MANAGEMENT INFORMATION

YEAR ENDED 28 FEBRUARY 2010

The following pages do not form part of the statutory financial statements

which are the subject of the independent auditor's report on pages 6 and 7.
 CO-OPERATIVE PRESS LIMITED

DETAILED PROFIT AND LOSS ACCOUNT

YEAR ENDED 28 FEBRUARY 2010

Note 2010 2009

£ £ £ £

REVENUE 286,357 313,741

COST OF SALES
Printing costs (80,201) (104,882)
Other costs (9,835) (10,187)
Marketing (2,040) (600)
Personnel (128,763) (122,273)
(220,839) (237,942)
GROSS PROFIT 65,518 75,799
GROSS PROFIT PERCENTAGE 22.9% 24.2%

OVERHEADS
Production, administration and selling
expenses 1 (72,477) (71,103)
Depreciation of fixtures and fittings (759) (819)
Depreciation of motor vehicles (3,451) (3,451)

(76,687) (75,373)
OPERATING (LOSS)/PROFIT (11,169) 426
Interest received 3,708 14,805
(LOSS)/PROFIT ON ORDINARY ACTIVITIES (7,461) 15,231

Page 16
 CO-OPERATIVE PRESS LIMITED

DIRECTORS REPORT & ACCOUNTS

YEAR ENDED 28 FEBRUARY 2010

ADDITIONAL NON STATUTORY INFORMATION

Directors’ other relevant Directorships:

Erskine Holmes: Glenall Housing Co-op

Lagan Navigation Trust Ltd.,
Ulsterwaterways Group Ltd.,
Ulster Community Investment Trust,
Blackwater Valley Museum Ltd.,
Northern Ireland Co-op Forum Ltd.,
Northern Ireland Co-ownership Ltd.,
Ulster Garden Villages Ltd.,
Ulster Provident Ltd.,
Grove Housing Association,
Gosford Housing Association Ltd.,

Geraint Day: Co-operative Party Ltd

Trustee of Care International Foundation (Careif)

Martin Alder: Co-operatives UK Ltd

Gloucester Land for People

Elaine Dean: Director of Supporters Direct (elected, non-exec)

Governor of the Co-operative College

Page 17