The President Writes.
Annual Report 2005 - The President's Seasonal Cheer
This year has been a period of consolidation for the Institute during which we have built on the groundwork laid during the Presidency of my predecessor, David Deacon. Despite this, we have also moved forward on a number of developments that, we hope, will bear fruition.

You will need no reminding that Correx Ltd. started trading in March 2005 and it is perhaps important to reiterate here that the reason for its existence is that charity law forbids us from trading at a profit. Thus, most charities have created a wholly-owned trading arm and Correx is our version of this. Currently the Board- of Directors of Correx Ltd., comprises David Deacon and myself (as Company Secretary), both nominated by the Council of the Institute. This will soon be expanded, on Council's advice, by an additional two Directors. However, the number of Independent Directors shall never exceed the number of Directors nominated by Council to directly represent ICorr's interests. This is, of course, not the AGM of Correx, however, I am pleased to report on its activities for this year. You will again need no reminding that the Industrial Coating Applicator Training Scheme (ICATS) is currently being rolled out across the country, and that this is the main trading activity of Correx. We are, at last, beginning to achieve traction on this issue and had an excellent kick-off meeting in York, a very well-attended and lively follow-up meeting in London and a third, more recent, meeting in Newcastle. Currently more than 200 people have heard about the scheme in seminars and meetings, more than 10 companies have fully registered on the scheme with more than 20 registered trainers and more than 50 painters in training. At this early stage (6 months in) we believe we have a sufficient core of companies in the scheme and the priority over the next period is to build up the numbers of painters under training and to debug the administrative, management and training processes. We will then be ready for demand to increase again during the middle of next year as it is expected to do when the major clients (e.g. Highways Agency, Transco, etc) start to write mandatory training requirements into their contract tender documents. These activities are being funded currently by sponsorship but the scheme should become self-funding over the next 1-2 years when it should have well over 1,000 (and perhaps up to 3,000) painters registered. The second major trading activity in Correx this year was the conference, run on modest lines in Manchester. Currently, it is scheduled to make a modest profit of between £3-4k which, although doesn't sound much, represents about 20% on turnover so maybe isn't that bad. Finally, I can confirm that the Board of Correx Ltd agreed recently to donate funds to the Institute via Gift Aid when circumstances permit. Currently, we are still awaiting a ruling from the auditors regarding taxation and, depending on the outcome, may donate up to £10k to the Institute in the next financial year.

Moving on to Institute matters, the process of consolidation continues and I believe that the arrangements at Corrosion House are now working comfortably. The recent appointment of a part-time manager for the Sustaining Membership is an initiative that is intended to improve the service to our supporting Corporate Bodies and also improve their profile within the Institute. Also, individual membership rose slightly during the year, which is very encouraging, and we will be initiating a drive next year to encourage membership upgrades from Ordinary to Professional, from Professional to Fellow and, where appropriate, encourage Chartered Scientist registration.

Moving to the magazine, I am pleased to report that the improved financial position in the Institute allowed us to retain 6 issues of Corrosion Management this year; in addition arrangements have been made to share editorial copy with the European Federation of Corrosion newsletter and with the news and views sections in the Institute of Metal Finishing and Oil and Colour Chemists Association journals. These, together with other changes will increase the breadth of coverage in CM and is intended to provide a better, more interesting "read" for the membership. Adoption of digital disc-to-print and other new technologies by the publisher has allowed the cost to the Institute to be reduced by over £750 per issue over the last two years. Finally, the publishers recently suggested that the look of Corrosion Management could be "freshened" from next year and this has been agreed by Council. We all look forward to the new format and hope that this will be received well.

Turning to training schemes these, as always, continue to be managed and promoted extremely well by our partners Argyll-Ruane. The introduction of ICATS has resulted in an additional training programme and, overall, licence income from the schemes continues to be very healthy. Argyll-Ruane, together with Fitzcoat'ings (the content developer), will continue to be major partners of the Institute and Correx in the future development of ICATS. We are pleased to have them on board.

Although the financial position of the Institute is now stronger than 3 years ago, it is by no means completely certain. It is still very possible to over-reach ourselves and prudence is thus necessary. Although the Treasurer's report shows a healthy increase in group net funds (assets) of approximately £64k from last year, this is not profit. In fact this represents an asset gain on revaluation of Corrosion House of £32k, and sponsorship funds of £19k earmarked for the development of ICATS in Correx. The Institute surplus was a much more modest £13k of which almost £6.5k was attributable to Branches. Nevertheless, in the light of the financial improvements Council agreed that £10k of the mortgage on Corrosion House could be repaid immediately. This is the first repayment on the mortgage and will leave approximately £80k outstanding. If the current surpluses continue, Corrosion House should be debt-free in about 7-8 years. In order to continue this financial improvement, individual subscriptions will rise from June 2006 by about 5%. This will be the first rise since 2002 and represents less than the increase in costs due to inflation since that date (about 8%). In future Council will determine, on an annual basis, whether a rise in subscriptions is necessary but any such rise will not exceed the inflation rate.

It is, of course, traditional at this time of year to thank people for all they've done. I think few members really know how much effort is put in behind the scenes in order to keep the show on the road, both in the Upper Echelons (i.e. at Trustee and Council level) as well as at the Coal Face (Committee, Divisional and Branch Level). I certainly didn't before I came in. It is blindingly obvious that we have only survived in the past as an Institute by the good will of all those who have gone before. While this good will (of members and colleagues) continues, the Institute will most definitely continue. However, frankly, with increasing pressures on everyone's time it is sometimes difficult to see where the future commitment and new blood will come.

Anyway, this being the season of good will, I recently constituted a Presidential Grand Jury to carefully consider the cream of the contenders deserving of a special mention. I have to say that in some categories there was at least one eligible candidate, so the competition was very fierce indeed! i have great pleasure now in revealing my very own special award ceremony - perhaps they might be called President's Plagues (or Leo's):

For Lifetime Achievement "The Golden Bailer":
David Deacon (for persistently and regularly keeping the ship afloat)

The Branch Treasurers' Cup:
Brian Weston and Tony Collins (for finding money we probably don't have)

The Grave Robbers Trophy:
John O'Shea (for knowing where most of the skeletons are buried)

The "I Always Confuse Them on the Phone" Prize
Cerri Sweet, Heather Putter and Gill Inwood (for being real office angels)

Winner of the "Painters and Decorators" Championship Hurdle:
ICATS, by GB out of Fitzcoatings (going - heavy; but subject to Stuart's enquiry)

The Akid Award:
Douglas Mills (for best technical contribution to Corrosion Management)

The Mills Medal:
Bob Akid (for best technical contribution to Corrosion Management)

Special Certificate for the Most Appropriate Use of Novel Technology:
Square One (for sharing the disc-to-print savings with us - they didn't have to!)

Coach of the Year:
Dave Griffiths (team: Argyll-Ruane)

Christmas Stockings:
Courtesy Jim Burnell-Gray (extra hay deliveries available at Newcastle)

Well, that's it. If you didn't win this year, never mind - there's always next year and my retirement honours list!

"El Presidents",
Virgin Pendolino,
Just past Macclesfield,
Clutching a Beer.
10th November 2005

stuart.lyon@manchester.ac.uk