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1
Contents Page
Financial highlights 3
Directors and other information 4
Directors' biographies 5
Chairman's statement 8
Operating and financial review 9
Directors' report 11
Statement of Directors' responsibilities 18
Independent Auditor’s report 19
Statement of accounting policies 21
Group income statement 25
Group balance sheet 26
Group cash flow statement 27
Group statement of changes in equity 28
Company balance sheet 29
Company cashflow statement 30
Company statement of changes in equity 30
Notes forming part of the financial statements 31
Five Year Summary 42
2
The Financial Statementsand Annual Report of
Oglesby & Butler Group plcfor the year ended 31 March 2007
Manufacturers and exporters ofthe Portasol gas-powered
soldering iron product range
www.portasol.com
3
2007 2006
000’s 000’s
Revenue 5,413 5,130
Profit/(loss)beforetaxation 216 (202)
Taxcreditonprofit/(loss) 6 21
Profit/(loss)forthefinancialyear 222 (181)
Profit/(loss)pershare 1.81c (1.47)c
Netassetspershare 46.49c 44.68c
FinancialHighlights
4
DirectorsN.O.Dowling(Chairman)A.P.Oglesby(Chief Executive)J.P.Oglesby(Research and Development)T.P.Byrne (Non-Executive)
SecretaryM.N.Boran
AuditorKPMGCharteredAccountantsRegisteredAuditor1StokesPlaceSt.Stephen’sGreenDublin2
SolicitorsArthurCoxSolicitorsEarlsfortCentreEarlsfortTerraceDublin2
StockbrokersBloxhamStockbrokers2/3ExchangePlaceI.F.S.C.Dublin1
DavyStockbrokersDavyHouse49DawsonStreetDublin2
BankersAlliedIrishBanks,plcBankcentreBallsbridgeDublin4
RegistrarandTransferOfficeComputershareServices(Ireland)LimitedHeronHouseCorrigRoadSandyfordDublin18
RegisteredOfficeIndustrialEstateO'BrienRoadCarlow
RegisteredNumber124871
DirectorsandOtherinformation
5
N.O.DowlingChairman (non-executive)
Charteredaccountant,aged69,isabusinessconsultantandwasformerlyChiefExecutiveofBordGaisEireann,andisadirectorofanumberofprivatecompanies.Inadditiontohisdutiesasnon-executiveChairman,NevinisChairmanoftheAuditCommitteeandamemberoftheRemunerationCommittee.
J.P.OglesbyResearch and Development Director
Designengineer,aged61,wasoneofthefoundersofOglesby&Butler.PaulhasworkedinengineeringcompaniesintheUnitedKingdomandalsoinBraunIrelandLimited.
T.P.ByrneNon-Executive Director
TomByrne,aged57,istheformerManagingDirectorofDavyCorporateFinanceLimited,partofDavyStockbrokers.HejoinedDavyin1987andretiredin2001topursueindividualinterestsandassignments.Hecurrentlymanageshisowncorporateadvisorycompanyandisadirectorofanumberofprivatecompanies.HeisaCharteredAccountantbyprofessionandisaformerpartnerinArthurAndersen.
A.P.OglesbyChief Executive
Designengineer,aged61,wasoneofthefoundersofOglesby&Butler.PeterworkedpreviouslyintheGeneralElectricCo.Group,theThornElectronicsGroupandBraunIrelandLimited.PeterisamemberoftheRemunerationCommittee.
Directors’Biographies
6
SuperPro Single
SuperPro Kit
AgriVetProductRange
Dehorner MKII
BlowTorchRange
Gas Torch 220
Professional Iron
Weller Kit
Technic Iron
Pro II Kit
Portasol 50 - (DIY)
ProPiezo Kit
CordlessGasPoweredSolderingIronRange
8
Chairman’sstatement
Iampleasedtoreportthatthegroupachievedaprofitbeforetaxof216,251fortheyearto31March2007whichcomparestoalossinthepreviousyearof201,618.Thisturnaroundinprofitabilitywasachievedinverydifficulttradingcircumstancesandreflectsthesuccessofstringenteffortsmadetoreducestaffinglevels,controlmanufacturingcostsandtoincreaseproductivity.
Wecontinuetoupgradeandenhanceexistingproductsthroughtheworkofthedevelopmentteamandinadditiontheteamisworkingonthealternativeusesforourexistinganddevelopingtechnologyinsearchofnewmarketsinwhichtosellourproducts.
BusinessreviewThefinancialstatementshavebeenpreparedinaccordancewiththeGroup’saccountingpoliciesunderIFRSasadoptedbytheE.U.assetoutinpages21to24.
Groupsalesfortheyearwere5.4m.Theprofitfortheyearbeforetaxationwas216,251(222,508aftertaxcreditof6,257)comparedwithalossof201,618lastyear.Earningspersharewere1.81c(2006loss-1.47c).
Researchison-goinginthedevelopmentofnewproductsbasedonexistingtechnology.
DividendsInlightofthecontinuedadversetradingconditionsitisnotintendedtoproposeadividendfortheyear.
OutlookTradingconditionscontinuetobedifficultparticularlyintheU.S.largelyduetomarketuncertaintyandtheweaknessoftheU.S.dollar.TheBoardbelievesthatwiththerigorouscostcontrolswhichhavebeenputinplacethattheGroup’sproductswillcontinuetobecompetitive.
Ithankmyfellowdirectorsandthestafffortheircommitmentandcontinuedsupport.
NevinO.DowlingChairman
20 September 2007
9
Reviewofoperations
IntroductionWecontinuetooperateindifficulttradingconditionswhichhavebeenexacerbatedbytheweaknessoftheUSdollaragainsttheEuro.Despitetheseadversecircumstances,theGrouphastradedprofitablyandhasreturnedtoprofitfortheyear.Wecontinuetokeepunderreviewallelementsofouroperationsandaregearedtotakeimmediatecorrectiveactiontomaintainthecompetitivenessofourproducts.
ProductionStaffinglevelshavebeenmaintainedatreducedlevelstoprioryears,nevertheless,duelargelytonationalawards,ourwagescostscontinuetorise.Manufacturingprocesses,workpracticesandproductdesignarekeptunderreviewandwecontinuetoseektoimproveproductivityandreducemanufacturingcosts.
ResearchanddevelopmentWecontinuetoupgradeandimprovedesignofexistingproductstoensuretheircontinuedcompetitivenessinthemarket.Wealsocontinuetoinvestigateseveralpossibleareasofusebasedonourexistingpatentedknowledgeanddevelopinggastechnologymarkets.
MarketingWecontinuetoseekwiderexposureforourproductsinseveralinternationalmarketsandactivelypromoteallourproductsbyattendingandparticipatingintradefairsandsalesconferencesofmajordistributors.
FinanceDetailsoftheGroup’scashflowfor2007aresetoutintheconsolidatedcashflowstatementonpage27,andshowanincreaseincashof200,173ascomparedto89,342for2006.
ThetablebelowsummarisestheGroup’scashflowfor2007and2006
2007 2006
Inflows Operatingprofit/(loss) 243,850 (152,570)Workingcapitalreductionanddepreciation 216,974 547,269
460,824 394,699OutflowsInterestpaid (27,599) (25,308)Purchaseofpatents,property,plantandequipment(net) (197,057) (182,469)Financeleaserepayments (86,786) (97,580)Proceedsfrommaturityofinvestments 50,791 -
(260,651) (305,357)
Netcashinflow 200,173 89,342
Cashgenerationfromoperationsandworkingcapitalmanagementamountedto460,824intheyearandthesefundswereprimarilyusedforinvestmentinongoingproductdevelopmentandupgradingofmanufacturingprocesses.
10
Operatingandfinancialreview(continued)
EnvironmentTheGroupendeavoursatalltimestocomplywithallapplicableenvironmentalregulations.
FutureWeanticipatethatdifficulttradingconditionsandtheweaknessoftheUSdollarwillcontinuetoadverselyaffectsalesofourproductsinthecomingyear.Weconsiderthatthecontrolsputinplacetoensurethatimmediatecorrectiveactionistakentominimisecostswillassistusintradingcompetitivelyinthecomingyear.
Ithankmanagementandstafffortheircommitmentandcontinuedsupport.
A.P.Oglesby(Chief Executive)
20September2007
11
Directors’report
TheDirectorshavepleasureinsubmittingtheirAnnualReporttotheShareholders,togetherwiththeauditedfinancialstatementsfortheyearended31March2007.
Principalactivities,reviewofbusinessandfuturedevelopmentsTheCompanyisanindustrialholdingcompany.Theprincipalactivitiesofthegroupcontinuestobethemanufactureandexportofgaspoweredhandtools.Therehavebeennosignificantchangesintheseactivitiesduringtheyear,andtheDirectorshavenoplanstochangethemsignificantlyintheforeseeablefuture.Keyperformanceindicatorsthatarefocusedonbymanagementinclude:•marketshare•revenue,salesordersvalueandvolumes•dealernetworkrepresentationAdetailedreviewoftheoperationsfortheyear,andoffuturedevelopments,issetoutonpages9and10.
GroupundertakingsAlistingoftheCompany'sgroupundertakingsissetoutinnote27tothefinancialstatements.
ResultsDetailsoftheresultsfortheyeararesetoutintheGroupincomestatementandrelatednotes.
ResearchanddevelopmentDuringtheyear,164,841(2006:208,638)wasinvestedinresearchanddevelopment,whichhasbeenexpensedwithintheincomestatementfortheyear.Inadditionafurther88,395(2006:82,853)wasexpendedinsecuringpatents.Themainthrustoftheseactivitiesistofurtherdevelopthepotentialofourcordlessgaspoweredcatalyticrangeofsolderingirons,whileatthesametimedevelopingtheGlueGun/Agri-Productlineswiththeparticularapplicationofthermostatictemperaturecontrol.
DividendsNodividendsweredeclaredduringthefinancialyearended31March2007(2006:Nil).
AnnualGeneralMeetingNoticeoftheAnnualGeneralMeetingwillbeissuedunderseparatecover.Shareholdersarebeingaskedtorenewtheauthoritytodisapplythestatutorypre-emptionprovisions(validuntilthenextAnnualGeneralMeeting)uptoamaximumof1,231,508OrdinarySharesof12ceach(being10%ofthenominalvalueoftheCompany’sissuedsharecapitalatthedatehereof).
ExceptfortheissueofsharespursuanttotheCompany'sshareoptionschemes(shouldoptionsbeexercised),theDirectorsdonothaveanycurrentintentiontoissueshares.
Inaddition,ShareholdersarebeingaskedtorenewtheauthorityoftheCompanyoranyofitsgroupundertakings,whichwasoriginallygivenattheAnnualGeneralMeetingheldon10November2006,topurchasetheCompany'sownsharesandtore-issuetreasuryshares.ThetermsoftheauthorityarethesameasthosegivenattheAnnualGeneralMeetingon10November2006includingthetermsrelatingtothemaximumandminimumpricesatwhichsharesmaybepurchased,andthatsuchpurchasesmaynotexceed10%oftheexistingsharecapitaloftheCompanywithinanyperiodof12months.TheDirectorsdonothaveanycurrentintentiontoexercisethesepowers.
12
Directors’report(continued)
InterestsofDirectorsandSecretaryTheinterests(allofwhichwerebeneficiallyowned)oftheDirectorsandCompanySecretary,andtheirwivesandminorchildren,inthesharecapitaloftheCompanyanditsGroupundertakingsat31March2007and31March2006wereasfollows:
Oglesby&Butler Oglesby&Butler Groupplc Investments OrdinaryShares OrdinaryShares
of12ceach 31March2006and31March2007 Atbeginning Atend Class per Number ofyear ofyear Share
N.O.Dowling 210,000 210,000 A 0.03 25,000A.P.Oglesby 2,876,188 2,876,188 B 0.04 20,000J.P.Oglesby 2,344,685 2,344,685 C 0.05 12,500M.N.Boran 11,668 11,668 K 0.31 2,000
DetailsofshareoptionsgrantedtotheDirectorsandCompanySecretaryareasfollows:
Atbeginning Granted Lapsed Atend Grant Dateof ofyear inyear inyear ofyear price Grant centM.N.Boran 30,000 - 30,000 - 33.00 1996
Alloftheaboveoptionswereexercisableforaperiodof10yearsfromtheanniversaryofthedatesonwhichtheyweregranted.Alloptionsoutstandinglapsedduringtheyear.
Themarketpriceofthesharesat31March2007was20candtherangefortheyear31March2007was19cto26c.
TherewerenochangesintheinterestsofDirectorsandSecretarysince31March2007.
TherehasnotbeenanycontractorarrangementinrelationtothebusinessoftheCompanyoranyGroupundertakingduringtheyearinwhichaDirectorortheSecretaryoftheCompanywasmateriallyinterestedandwhichwassignificantinrelationtotheCompany'sbusiness.
13
Directors’report(continued)
Substantialshareinterests
Inadditiontotheholdingsindicatedabove,thefollowingShareholdersheldinexcessof3%oftheissuedordinarysharecapitaloftheCompanyat20September2007:
Oglesby&ButlerGroupplcOrdinarySharesof12ceach
Number %HoldingVidacosNomineesLimited 652,500 5.29%Mr.K.Anderson 3,167,958 25.72%
AsfarastheDirectorsareaware,nootherpersonorcompanyheld3%ormoreoftheissuedordinarysharecapitaloftheCompanyat20September2007.
ShareOptionSchemes
At31March2007,underthetermsoftheOglesby&ButlerGroupplcshareoptionschemes,therewerenooutstandingoptionsastheoutstandingoptionsof30,000ordinaryshareshadlapsedduringtheyear(31March2006:30,000optionsoverordinaryshares).
Corporategovernance
TheDirectorsarecommittedtoachievecompliancewiththe2003CombinedCodeonCorporateGovernancewhichsetsoutprinciplesofgoodgovernanceandacodeofbestpracticeandwhichwasappendedtothelistingrulesoftheIrishStockExchange.TheDirectorshavedevelopedacodeofpracticewhichdealswithamongothermatters,issuesofcorporategovernance.ThiscodeofpracticeisdesignedtoensurethatthemainprinciplesandsupportingprinciplesofgovernancesetoutinSection1ofthe2003CombinedCodeareappliedintheGroup.
The Board and DirectorsTheBoardiscomprisedoftwoexecutiveandtwoNon-executiveDirectors.TheBoardhasnominatedN.O.DowlingastheseniorindependentNon-executiveDirector.BothNon-executiveDirectorsareconsideredindependent.TheBoardmeetsregularly,inaccordancewithapre-determinedscheduleofmeetingsandalsomeetsonotheroccasionsasnecessary.
Directors,otherthantheChairmanandChiefExecutive,aresubjecttoretirementbyrotationeverythreeyearsattheCompany’sAnnualGeneralMeeting.ProceduresareinplaceforDirectorsinfurtheranceoftheirdutiestoreceiveappropriatetrainingandtotakeindependentprofessionaladviceifnecessary,atthecompany’sexpense.AllDirectorshaveaccesstotheadviceandservicesoftheCompanySecretary,whoisresponsibleforensuringthatBoardproceduresarefollowed.Non-executiveDirectorsareappointedforspecifictermsthroughaformalselectionprocess.
TheBoardhasaformalscheduleofmattersspecificallyreservedtoitfordecision.MattersreservedfordecisionbytheBoardincludeallsignificantcommercial,tradingandstrategicmatters,approvalofcapitalandrevenuebudgets,approvalofthefinancialstatements,membershipoftheBoardandBoardCommittees,acquisitionsanddisposals,capitalexpenditure,riskmanagementandtreasurypolicies.
AllDirectorsreceivefullboardpapersinsufficienttimeinadvanceofboardmeetingsandanyfurtherbackuppapersandinformationareavailabletoDirectorsonrequest.TheChairmanofeachCommitteeoftheBoardisavailabletogiveareportontheCommittees’proceedingsatboardmeetingsifrequired.AllDirectorsreceivetheGroup’smonthlyfinancialstatementsandcomparisonstobudgets.ManagementaccountsarepresentedtotheBoardonaregularbasis.
14
Directors’report(continued)
Board CommitteesTheBoardhasestablishedanumberofCommitteeswhichoperatewithindefinedtermsofreference.ThetermsofreferenceoftheBoardCommitteesareavailableonrequestfromtheCompanySecretary.
MeetingsTherewere7meetingsoftheBoardduringtheyear.TheChairmaninconjunctionwiththeCompanySecretarysetstheagendaforeachmeeting.MeetingsareheldonsiteatourpremisesinCarlowandatotherdesignatedvenuesduringtheyear.
DetailsofDirectors’attendanceatboardandcommitteemeetingsaresetoutonpage17.
Performance appraisalTheNon-executiveDirectorsannuallyconductareviewoftheperformanceoftheBoardanditsCommittees.TheChairmanappraisestheperformanceofDirectorsandSecretarythroughindividualdiscussions.
Terms of appointment of Non-executive DirectorsThestandardtermsofletterforappointmentofNon-executiveDirectorsisavailableonrequestfromtheCompanySecretary.
Election and appointment of DirectorsElectionofDirectorsisinaccordancewiththeCompany’sArticlesofAssociationandiscarriedoutattheAnnualGeneralMeeting.
ChairmanMr.N.O.DowlinghasbeenChairmanoftheGroupsince1991,andisresponsiblefortheefficientandeffectiveworkingoftheBoard.InthisheensuresthatallBoardagendascovermajorstrategicissuesconcerningtheGroupandalsothattheBoardevaluatesandapprovesmanagementplansfortheGroup.Mr.DowlingholdsanumberofotherdirectorshipsexternaltotheGroup.TheBoardconsidersthatthisdoesnotinterferewithhisdutiesasChairman.
TheBoardhasdelegatedauthoritytothefollowingCommitteesonanumberofspecificmattersasdetailedbelow:
Audit Committee TheAuditCommitteeconsistsoftheChairman,theNon-executiveDirectorandtheCompanySecretary.TheAuditCommitteemet4timesduringtheyear.TheChairmanandCompanySecretaryattendattheregularauditmeetingswhiletheexternalauditorattendsasrequired.
TheAuditCommitteereviewstheservicesprovidedbytheexternalauditor,inrespectofaudit,auditrelatedandnonauditservices.Auditrelatedservicesareservicescarriedoutbytheexternalauditorbyvirtueoftheirroleasexternalauditorandincludeassurancerelatedworkandaccountingadvice.Thenon-auditservicesprovidedprincipallyrelatedtotaxadviceandassistancewithcompanysecretarialmatters.Inlinewithbestpracticetheexternalauditordoesnotprovideservicessuchasfinancialinformationsystemdesignandvaluationworkwhichcouldbeconsideredtobeinconsistentwiththeauditrole.
Main functions of the Committee are:·ReviewingtheGroup’sfinancialstatementsandmonitoringfinancialreportingissues.·ReviewingtheGroup’sinternalcontrolsystems.·Advisingastotheappointmentofexternalauditor.
Remuneration CommitteeThisCommitteeiscomprisedoftheChairmanandtheChiefExecutive,howeverperiodicallytheResearchandDevelopmentDirectormaybeaskedtoattend.TheCommitteemet3timesduringtheyear.
The Committee’s main functions are :·DeterminestheGroup’spolicyonexecutiveandNon-executiveDirectorspay.·DeterminestheremunerationofexecutiveandNon-executiveDirectors.·Monitorsthelevelandstructureofremunerationforseniormanagement.·Reviewsandapprovesthedesignofallincentiveshareplans.·TheCommitteealsoreviewsandapprovesthereportonDirectors‘remunerationassetoutinnote5,onpage32ofthisreport.
15
Directors’report(continued)
RemunerationCommitteecont’d.
TheGrouphasinplaceprocedureswhichareconsistentwithSectionAoftheIrishStockExchange'sBestPracticeProvisionsonDirectors'Remuneration,savethattheChiefExecutiveisamemberoftheRemunerationCommittee,andtheseprocedureshaveoperatedthroughouttheyear.InpreparingitsRemunerationCommitteereport,theBoardhasfollowedtheprovisionsoftheCombinedCode.
TheexecutiveDirectorsdonotholdanyexternaldirectorships.
Noshareoptionsweregrantedduringtheyearended31March2007.Performancerelatedbonuseshavenotbeenpaidinthepast.Considerationwillbegiventotheseattheappropriatetime.
Finance CommitteeTheFinanceCommitteeconsistsoftheChairman,ChiefExecutiveandtheCompanySecretary.ThisCommitteemet3timesduringtheyear.
TheFinanceCommitteehasbeenappointedbytheBoardtoadviseitonmattersrelatingtothefollowing:·FinancialrequirementsoftheGroup.·Fundingarrangementswithbanksandlendinginstitutions.
Nomination CommitteeThisCommitteesitsaspartofthefullBoardandassistswithadvicethatensuresthatthestructuresofboththeBoarditselfandthevariousCommitteesareappropriatetotheneedsoftheGroup.
Main functions are:·AssessmentofBoardrequirementsintermsofskills,experience,anddiversityneeded.·Processofidentificationforsuitablecandidates.
Relations with shareholdersTheCompanyhasregulardialoguewithinstitutionalshareholders,andencouragescommunicationwithprivateshareholders,welcomingtheirparticipationatgeneralmeetings.AllDirectorsaremadeawareofshareholderviewsthroughtheChairman,astheyarise.
AllBoardmembersattendtheAnnualGeneralMeetingandareavailabletoanswerquestions.SeparateresolutionsareproposedonsubstantiallydifferentissuesandtheagendaofbusinesstobeconductedattheAnnualGeneralMeetingincludesaresolutiontoreceiveandconsidertheannualreportandfinancialstatements.
TheDirectorscomplywiththeCombinedCodeasitrelatestothedisclosureofproxyvotes,theseparationofresolutionsandtheattendanceofDirectorsattheAnnualGeneralMeeting.TheDirectorsintendtocomplywiththeProvisionsoftheCodeconcerningthegivingoftwentyonedaysnoticeoftheAnnualGeneralMeeting.
Internal controlTheBoardofDirectorshasoverallresponsibilityfortheGroup’ssystemofinternalfinancialcontrolandforreviewingitseffectiveness.However,suchasystemisdesignedtomanageratherthaneliminatetheriskoffailuretoachievebusinessobjectivesandcanprovideonlyreasonable,butnotabsolute,assuranceagainstmaterialmis-statementorloss.
The2003CombinedCodehasarequirementthatDirectorsannuallyreviewtheeffectivenessoftheGroup’ssystemofinternalcontrols.Thisrequiresareviewofthesystemofinternalfinancialcontrolstocoverallcontrolsincludingfinancial,operational,complianceandriskmanagement.
Formalguidancefortheimplementationoftherequiremententitled“InternalControl:GuidanceforDirectorsontheCombinedCode”(theTurnbullGuidance)waspublishedinSeptember1999.
TheGroupachievedfullcompliancewiththeTurnbullGuidancethroughouttheyearended31March2007.
TheDirectorshavereviewedtheeffectivenessoftheGroup’ssystemofinternalcontrol.Thereisanongoingprocessforidentifying,evaluatingandmanagingthesignificantrisksfacedbytheGroupthathasbeeninplacefortheyearunderreviewanduptothedateofthesefinancialstatements.ThisprocessisregularlyreviewedbytheBoardin
16
Directors’report(continued)
accordancewiththeTurnbullGuidance.ThekeyinternalcontrolproceduresintheGroupincludethefollowing:• anorganisationalstructurewithformallydefinedlinesofresponsibilityanddelegationofauthority.TheBoard
hasascheduleofmattersreferredtoitfordecision.• acomprehensivebudgetingsystem,withannualfinancialbudgetswhichareapprovedbytheBoard.• actualperformancesaremeasuredagainstbudgetonaquarterlybasis.• theBoardconductsregularassessmentsofkeybusinessrisks,includingresearchanddevelopmentandthe
productionofnewproducts.• theBoardoverseesmarketinginitiativesandsetsandmonitorssalestargets.• thereisongoingreviewofproductioncapabilities.• anextensivesystemofqualitycontrolisinplacetoensurecontinuedhighproductstandards.• thereareclearlydefinedguidelinesforinvestmentinplantandequipmentandappropriatelevelsof
authorisationforalltransactions.• theAuditCommitteereviewstheinterimandannualfinancialstatementsandthenatureandextentofexternal
audit.• theAuditCommitteealsoreviews,onbehalfoftheBoard,reportsfrommanagementandtheexternalauditor,
dealingwithinternalfinancialcontrolmatters.
GiventhesizeoftheGroup,aninternalauditfunctionhasnotbeensetup.
ServicecontractsTheCompanyandGrouphaveenteredintoservicecontractswiththeexecutiveDirectors.Eachoftheseservicecontracts,whichexistforthreeyearsto31December2008,maybeterminatedbytheGroupbygivingsixmonths'writtennotice.Provisionsincludepredeterminedcompensationpaymentsonterminationofoneyear’ssalary.
TheRemunerationCommitteeissatisfiedthatthetermsofthoseservicecontractscontinuetobeappropriateandnecessarytoretaintheservicesoftheexecutiveDirectors.
Directors'emolumentsandinterestsDetailsofDirectors'emoluments,includingpensioncontributionstothedefinedcontributionscheme,aresetoutonpage32,anddetailsoftheinterestsofDirectorsinthesharecapitaloftheGroupandoftheirholdingsofshareoptionsandinterestsincontractsaresetoutonpage12.
GoingconcernAftermakingenquiries,theDirectorshaveareasonableexpectationthattheGrouphasadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.Forthisreason,theycontinuetoadoptthegoingconcernbasisinpreparingthefinancialstatements.
PrincipalrisksanduncertaintiesTheDirectorsconsiderthattheprincipalrisksanduncertaintiesfacedbytheCompanyanditssubsidiariesareinthefollowingcategories:
Economic risk• Theriskofincreasedinterestratesandorinflationhavinganadverseimpactonservedmarkets.• Theriskofunrealisticincreasesinwagesorinfrastructuralcostimpactingadverselyoncompetitivenessofthe
Groupanditsprincipalcustomers.• Theriskofadverseexchangemovements.
Theserisksaremanagedbyinnovativeproductsourcingandstrictcontroloncosts.
Competition riskTheDirectorsoftheCompanyanditssubsidiariesmanagecompetitionriskthroughcloseattentiontocustomerservicelevelsandproductinnovation.
Financial riskEachofthecompanieswithintheGrouphasbudgetaryandfinancialreportingprocedures,supportedbyappropriatekeyperformanceindicators,tomanagecredit,liquidityandotherfinancialrisk.AfinancialriskmanagementobjectiveoftheCompanyistoprotecttheGroupfromsignificantcurrencyfluctuations.TheCompanypolicyistonegotiatesettlementtermswithsignificantsuppliersinlocalcurrencywherepossible.Intheeventthat
17
Directors’report(continued)
theGroupisexposedtocurrencytransactionstheGrouptendstoenterintoforwardcontracts.StatementofcomplianceTheDirectorsfullyadoptedtheprovisionsoftheCombinedCode,andhavecompliedwiththeCodethroughouttheyearended31March2007otherthaninrelationtothefollowingmatters:
• giventheconstraintsimposedbythestageofdevelopmentoftheGroup,andthelimitednumberofNon-executiveDirectors,theAudit,Remuneration,NominationandFinanceCommitteesarenotcomprisedexclusivelyofnonexecutiveDirectors.
• TheBoardconsiderstheNon-executiveChairmantobeindependent,howeverheparticipatesintheGrouppensionschemeanduntil1991hewasChiefExecutiveoftheGroup.
AttendanceatBoardandCommitteemeetingsduringthefinancialyearended31March2007
AccountingrecordsTheDirectorsbelievethattheyhavecompliedwithSection202oftheCompaniesAct,1990withregardtobooksofaccountbyemployingfinancialpersonnelwithappropriateexpertiseandbyprovidingadequateresourcestothefinancialfunction.ThebooksofaccountoftheCompanyaremaintainedattheregisteredofficeoftheCompanyatIndustrialEstate,O’BrienRoad,Carlow.
AuditorInaccordancewithSection160(2)oftheCompaniesAct,1963,theauditor,KPMG,CharteredAccountants,willcontinueinoffice.
OnbehalfoftheBoard
N.O.Dowling A.P.OglesbyDirector Director
20September2007
Board Audit Finance Remuneration
Director: A B A B A B A B
N.O.Dowling 7 7 4 4 3 3 3 3
A.P.Oglesby 7 7 - - 3 3 3 3
J.P.Oglesby 7 - - - 3 - 3 -
T.P.Byrne 7 7 4 3 - - - -
M.N.Boran 7 7 4 4 3 3 - -(Secretary)Column A - indicates the number of meetings held during the period the Director was a member of the Board and/or CommitteeColumn B - indicates the number of meetings attended during the period the Director was a member of the Board and/or Committee
18
IndependentAuditor’sreporttotheMembersofOglesby&ButlerGroupplc
WehaveauditedtheGroupandCompanyfinancialstatements(the“financialstatements”)ofOglesby&ButlerGroupplcfortheyearended31March2007whichcompriseoftheGroupIncomeStatement,theGroupandCompanyBalanceSheets,theGroupandCompanyCashFlowStatements,theGroupandCompanyStatementsofChangesinEquityandtherelatednotesonpage31to41.Thesefinancialstatementshavebeenpreparedundertheaccountingpoliciessetouttherein.
ThisreportismadesolelytotheCompany’smembers,asabody,inaccordancewithsection193oftheCompaniesAct1990.OurauditworkhasbeenundertakensothatwemightstatetotheCompany’smembersthosematterswearerequiredtostatetotheminanauditor’sreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompany’smembersasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.
RespectiveresponsibilitiesofdirectorsandauditorThedirectors’responsibilitiesforpreparingtheAnnualReportandthefinancialstatementsinaccordancewithapplicablelawandInternationalFinancialReportingStandards(IFRSs)asadoptedbytheEUaresetoutintheStatementofDirectors’ResponsibilitiesonPage18.
OurresponsibilityistoauditthefinancialstatementsinaccordancewithrelevantlegalandregulatoryrequirementsandInternationalStandardsonAuditing(UKandIreland).
WereporttoyououropinionastowhetherthefinancialstatementsgiveatrueandfairviewinaccordancewithIFRSsasadoptedbytheEUand,inthecaseoftheCompanyasappliedinaccordancewiththeprovisionsoftheCompaniesActs1963to2006,andhavebeenproperlypreparedinaccordancewiththeCompaniesActs1963to2006,andArticle4oftheIASRegulation.Wealsoreporttoyououropinionasto;whetherproperbooksofaccounthavebeenkeptbytheCompany;whetheratthebalancesheetdate,thereexistsafinancialsituationrequiringtheconveningofanextraordinarygeneralmeetingoftheCompany;andwhethertheinformationgivenintheDirectors’Reportisconsistentwiththefinancialstatements.Inaddition,westatewhetherwehaveobtainedalltheinformationandexplanationsnecessaryforthepurposesofouraudit,andwhethertheCompanybalancesheetisinagreementwiththebooksofaccount.
Wealsoreporttoyouif,inouropinion,anyinformationspecifiedbylaw,ortheListingRulesoftheIrishStockExchangeregardingDirectors’remunerationandDirectors’transactionsisnotdisclosedand,wherepracticable,includesuchinformationinourreport.
WereviewwhethertheCorporateGovernanceStatementreflectstheCompany’scompliancewiththenineprovisionsofthe2003CombinedCodespecifiedforourreviewbytheListingRulesoftheIrishStockExchange,andwereportifitdoesnot.Wearenotrequiredtoconsiderwhethertheboard’sstatementsoninternalcontrolcoverallrisksandcontrols,orformanopinionontheeffectivenessoftheGroup’scorporategovernanceproceduresoritsriskandcontrolprocedures.
WereadtheotherinformationcontainedintheAnnualReportandconsiderwhetheritisconsistentwiththeauditedfinancialstatements.TheotherinformationcomprisesonlytheChairman’sStatementandtheReviewofOperations.Weconsidertheimplicationsforourreportifwebecomeawareofanyapparentmisstatementsormaterialinconsistencieswiththefinancialstatements.Ourresponsibilitiesdonotextendtoanyotherinformation.
BasisofauditopinionWeconductedourauditinaccordancewithInternationalStandardsonAuditing(UKandIreland)issuedbytheAuditingPracticesBoard.Anauditincludesexamination,onatestbasis,ofevidencerelevanttotheamountsanddisclosuresinthefinancialstatements.ItalsoincludesanassessmentofthesignificantestimatesandjudgementsmadebytheDirectorsinthepreparationofthefinancialstatements,andofwhethertheaccountingpoliciesareappropriatetotheGroup’sandCompany’scircumstances,consistentlyappliedandadequatelydisclosed.
Weplannedandperformedourauditsoastoobtainalltheinformationandexplanationswhichweconsiderednecessaryinordertoprovideuswithsufficientevidencetogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorotherirregularityorerror.Informingouropinionwealsoevaluatedtheoveralladequacyofthepresentationofinformationinthefinancialstatements.
StatementofDirectors’ResponsibilitiesinrespectoftheAnnualReportandtheFinancialStatements
TheDirectorsareresponsibleforpreparingtheAnnualReportandtheGroupandCompanyfinancialstatements,inaccordancewithapplicablelawandregulations.
CompanylawrequirestheDirectorstoprepareGroupandCompanyfinancialstatementsforeachfinancialyear.UnderthatlawtheDirectorsarerequiredtopreparetheGroupfinancialstatementsinaccordancewithInternationalFinancialReportingStandards(IFRS)asadoptedbytheEUandhaveelectedtopreparetheCompanyfinancialstatementsinaccordancewithIFRSasadoptedbytheEUandasappliedinaccordancewiththeCompaniesActs1963to2006.
TheGroupfinancialstatementsarerequiredbylawandIFRSsasadoptedbytheEUtopresentfairlythefinancialpositionandperformanceoftheGroup,andtheCompanyfinancialstatementsarerequiredbyIFRS'sasadoptedbytheEUandasappliedbytheCompaniesActs1963to2006tofairlypresentthefinancialpositionoftheCompany.TheCompaniesActs1963to2006provideinrelationtosuchfinancialstatementsthatreferencesintherelevantpartofthoseActtofinancialstatementsgivingatrueandfairviewarereferencestotheirachievingafairpresentation.
InpreparingeachoftheGroupandCompanyfinancialstatements,theDirectorsarerequiredto:• selectsuitableaccountingpoliciesandthenapplythemconsistently;• makejudgementsandestimatesthatarereasonableandprudent;and• preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethattheGroup
andtheCompanywillcontinueinbusiness.
TheDirectorsareresponsibleforkeepingproperbooksofaccountthatdisclosewithreasonableaccuracyatanytimethefinancialpositionoftheCompanyandenablethemtoensurethatitsfinancialstatementscomplywiththeCompaniesActs1963to2006.TheyarealsoresponsiblefortakingsuchstepsasarereasonablyopentothemtosafeguardtheassetsoftheGroupandtheCompanyandtopreventanddetectfraudandotherirregularities.
UnderIrishcompanylawandtherequirementsoftheListingRulesissuedbytheIrishStockExchange,thedirectorsarealsoresponsibleforpreparingaDirectors’ReportandreportsrelatingtoDirectors’remunerationandcorporategovernancethatcomplywiththatlawandthoseRules.
OnbehalfoftheBoard
N.O.Dowling A.P.OglesbyDirector Director
20September2007
19
IndependentAuditor’sreporttotheMembersofOglesby&ButlerGroupplc
WehaveauditedtheGroupandCompanyfinancialstatements(the“financialstatements”)ofOglesby&ButlerGroupplcfortheyearended31March2007whichcompriseoftheGroupIncomeStatement,theGroupandCompanyBalanceSheets,theGroupandCompanyCashFlowStatements,theGroupandCompanyStatementsofChangesinEquityandtherelatednotesonpage31to41.Thesefinancialstatementshavebeenpreparedundertheaccountingpoliciessetouttherein.
ThisreportismadesolelytotheCompany’smembers,asabody,inaccordancewithsection193oftheCompaniesAct1990.OurauditworkhasbeenundertakensothatwemightstatetotheCompany’smembersthosematterswearerequiredtostatetotheminanauditor’sreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompany’smembersasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.
RespectiveresponsibilitiesofdirectorsandauditorThedirectors’responsibilitiesforpreparingtheAnnualReportandthefinancialstatementsinaccordancewithapplicablelawandInternationalFinancialReportingStandards(IFRSs)asadoptedbytheEUaresetoutintheStatementofDirectors’ResponsibilitiesonPage18.
OurresponsibilityistoauditthefinancialstatementsinaccordancewithrelevantlegalandregulatoryrequirementsandInternationalStandardsonAuditing(UKandIreland).
WereporttoyououropinionastowhetherthefinancialstatementsgiveatrueandfairviewinaccordancewithIFRSsasadoptedbytheEUand,inthecaseoftheCompanyasappliedinaccordancewiththeprovisionsoftheCompaniesActs1963to2006,andhavebeenproperlypreparedinaccordancewiththeCompaniesActs1963to2006,andArticle4oftheIASRegulation.Wealsoreporttoyououropinionasto;whetherproperbooksofaccounthavebeenkeptbytheCompany;whetheratthebalancesheetdate,thereexistsafinancialsituationrequiringtheconveningofanextraordinarygeneralmeetingoftheCompany;andwhethertheinformationgivenintheDirectors’Reportisconsistentwiththefinancialstatements.Inaddition,westatewhetherwehaveobtainedalltheinformationandexplanationsnecessaryforthepurposesofouraudit,andwhethertheCompanybalancesheetisinagreementwiththebooksofaccount.
Wealsoreporttoyouif,inouropinion,anyinformationspecifiedbylaw,ortheListingRulesoftheIrishStockExchangeregardingDirectors’remunerationandDirectors’transactionsisnotdisclosedand,wherepracticable,includesuchinformationinourreport.
WereviewwhethertheCorporateGovernanceStatementreflectstheCompany’scompliancewiththenineprovisionsofthe2003CombinedCodespecifiedforourreviewbytheListingRulesoftheIrishStockExchange,andwereportifitdoesnot.Wearenotrequiredtoconsiderwhethertheboard’sstatementsoninternalcontrolcoverallrisksandcontrols,orformanopinionontheeffectivenessoftheGroup’scorporategovernanceproceduresoritsriskandcontrolprocedures.
WereadtheotherinformationcontainedintheAnnualReportandconsiderwhetheritisconsistentwiththeauditedfinancialstatements.TheotherinformationcomprisesonlytheChairman’sStatementandtheReviewofOperations.Weconsidertheimplicationsforourreportifwebecomeawareofanyapparentmisstatementsormaterialinconsistencieswiththefinancialstatements.Ourresponsibilitiesdonotextendtoanyotherinformation.
BasisofauditopinionWeconductedourauditinaccordancewithInternationalStandardsonAuditing(UKandIreland)issuedbytheAuditingPracticesBoard.Anauditincludesexamination,onatestbasis,ofevidencerelevanttotheamountsanddisclosuresinthefinancialstatements.ItalsoincludesanassessmentofthesignificantestimatesandjudgementsmadebytheDirectorsinthepreparationofthefinancialstatements,andofwhethertheaccountingpoliciesareappropriatetotheGroup’sandCompany’scircumstances,consistentlyappliedandadequatelydisclosed.
Weplannedandperformedourauditsoastoobtainalltheinformationandexplanationswhichweconsiderednecessaryinordertoprovideuswithsufficientevidencetogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorotherirregularityorerror.Informingouropinionwealsoevaluatedtheoveralladequacyofthepresentationofinformationinthefinancialstatements.
20
Statementofaccountingpolicies
Oglesby&ButlerGroupisaCompanydomiciledinIreland.TheaddressoftheCompany’sregisteredofficeisIndustrialEstate,O’BrienRoad,Carlow.TheGroupfinancialstatementsfortheyearended31March2007consolidatetheindividualfinancialstatementsoftheCompanyanditssubsidiaries(togetherreferredtoas“theGroup”).
TheCompanyandGroupfinancialstatementsoftheCompanywereauthorisedforissuebytheDirectorson20September2007.
Theaccountingpoliciesappliedinthepreparationofthefinancialstatementsfortheyearended31March2007aresetoutbelow.Thesehavebeenappliedconsistently.
StatementofComplianceAsrequiredbyEuropeanUnion(EU)lawfrom1January2005,theGroup’sfinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(IFRSs)andtheirinterpretationsissuedbytheInternationalAccountingStandardsBoard(IASB)asadoptedbytheEU.TheindividualfinancialstatementsoftheCompany(‘Companyfinancialstatements’)havebeenpreparedinaccordancewithIFRSsasadoptedbytheEUandasappliedinaccordancewiththeCompaniesActs1963to2006whichpermitsacompany,thatpublishesitsCompanyandGroupfinancialstatementstogether,totakeadvantageoftheexemptioninSection148(8)oftheCompaniesAct1963frompresentingtoitsmembersitscompanyincomestatementandrelatednotesthatformpartoftheapprovedcompanyfinancialstatements.
TheIFRSsadoptedbytheEUappliedbytheCompanyandtheGroupinthepreparationofthesefinancialstatementsarethosethatwereeffectiveat31March2007.
Basisofpreparation
(a) Basis of measurementThefinancialstatementshavebeenpreparedunderthehistoricalcostconvention,exceptinthecaseofderivativeswhicharecarriedatfairvalue.
(b) Use of estimates and judgementsThepreparationoffinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.
Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisedandinanyfutureperiodsaffected.
CurrencyThefinancialstatementsarepreparedineuro.
BasisofConsolidationSubsidiariesareentitiescontrolledbytheGroup.ControlexistswhentheGrouphasthepowertogovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.TheGroupfinancialstatementsincludethefinancialstatementsoftheholdingcompanyandallitsGroupundertakingsmadeuptotheendofthefinancialyear.TheGrouptodatehasnotenteredintoanybusinesscombinations.Intragroupbalancesandanyunrealisedgainsandlossesorincomeandexpensesarisingfromintragrouptransactions,areeliminatedinpreparingtheconsolidatedfinancialstatements.
RevenueRevenuecomprisesthefairvaluefromthesaleofgoods(excludingvalueaddedtax)andisrecognisedintheincomestatementwhenthesignificantrisksandrewardsofownershiphavebeentransferredtothebuyer.Thisgenerallyoccursondelivery/shipmentofgoodstothebuyer.
GovernmentgrantsAgovernmentgrantrelatingtoanon-currentassetisrecognisedinthebalancesheetinitiallyasdeferredincomewhenthereisreasonableassurancethatitwillbereceivedandthattheGroupwillcomplywiththeconditionsattachingtoit.GrantsthatcompensatetheGroupforexpensesincurredarerecognisedasrevenueintheincomestatementonasystematicbasisinthesameperiodinwhichtheexpensesareincurred.GrantsthatcompensatetheGroupforthecostoftheassetarerecognisedintheincomestatementasotheroperatingincomeonasystematicbasisovertheusefullifeoftheasset.
IndependentAuditor’sreporttotheMembersofOglesby&ButlerGroupplc(cont’d.)
OpinionInouropinion:
• theGroupfinancialstatementsgiveatrueandfairview,inaccordancewithIFRSsasadoptedbytheEU,ofthestateoftheGroup’saffairsasat31March2007andofitsprofitfortheyearthenended;
• TheCompanyfinancialstatementsgiveatrueandfairview,inaccordancewithIFRSsasadoptedbytheEUasappliedinaccordancewiththeprovisionsoftheCompaniesActs1963to2006,ofthestateoftheCompany’saffairsasat31March2007.
• thefinancialstatementshavebeenproperlypreparedinaccordancewiththeCompaniesActs1963to2006andArticle4oftheIASRegulation.
Wehaveobtainedalltheinformationandexplanationswhichweconsidernecessaryforthepurposesofouraudit.InouropinionproperbooksofaccounthavebeenkeptbytheCompany.TheCompanybalancesheetisinagreementwiththebooksofaccount.
InouropiniontheinformationgivenintheDirectors’Reportisconsistentwiththefinancialstatements.
Thenetassetsofthecompany,asstatedintheCompanybalancesheetaremorethanhalfoftheamountofitscalled-upsharecapitaland,inouropinion,onthatbasistheredidnotexistat31March2007afinancialsituationwhichunderSection40(1)oftheCompanies(Amendment)Act1983wouldrequiretheconveningofanextraordinarygeneralmeetingoftheCompany.
CharteredAccountantsRegisteredAuditor1StokesPlaceSt.Stephen’sGreenDublin2
20September2007
21
Statementofaccountingpolicies
Oglesby&ButlerGroupisaCompanydomiciledinIreland.TheaddressoftheCompany’sregisteredofficeisIndustrialEstate,O’BrienRoad,Carlow.TheGroupfinancialstatementsfortheyearended31March2007consolidatetheindividualfinancialstatementsoftheCompanyanditssubsidiaries(togetherreferredtoas“theGroup”).
TheCompanyandGroupfinancialstatementsoftheCompanywereauthorisedforissuebytheDirectorson20September2007.
Theaccountingpoliciesappliedinthepreparationofthefinancialstatementsfortheyearended31March2007aresetoutbelow.Thesehavebeenappliedconsistently.
StatementofComplianceAsrequiredbyEuropeanUnion(EU)lawfrom1January2005,theGroup’sfinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(IFRSs)andtheirinterpretationsissuedbytheInternationalAccountingStandardsBoard(IASB)asadoptedbytheEU.TheindividualfinancialstatementsoftheCompany(‘Companyfinancialstatements’)havebeenpreparedinaccordancewithIFRSsasadoptedbytheEUandasappliedinaccordancewiththeCompaniesActs1963to2006whichpermitsacompany,thatpublishesitsCompanyandGroupfinancialstatementstogether,totakeadvantageoftheexemptioninSection148(8)oftheCompaniesAct1963frompresentingtoitsmembersitscompanyincomestatementandrelatednotesthatformpartoftheapprovedcompanyfinancialstatements.
TheIFRSsadoptedbytheEUappliedbytheCompanyandtheGroupinthepreparationofthesefinancialstatementsarethosethatwereeffectiveat31March2007.
Basisofpreparation
(a) Basis of measurementThefinancialstatementshavebeenpreparedunderthehistoricalcostconvention,exceptinthecaseofderivativeswhicharecarriedatfairvalue.
(b) Use of estimates and judgementsThepreparationoffinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.
Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisedandinanyfutureperiodsaffected.
CurrencyThefinancialstatementsarepreparedineuro.
BasisofConsolidationSubsidiariesareentitiescontrolledbytheGroup.ControlexistswhentheGrouphasthepowertogovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.TheGroupfinancialstatementsincludethefinancialstatementsoftheholdingcompanyandallitsGroupundertakingsmadeuptotheendofthefinancialyear.TheGrouptodatehasnotenteredintoanybusinesscombinations.Intragroupbalancesandanyunrealisedgainsandlossesorincomeandexpensesarisingfromintragrouptransactions,areeliminatedinpreparingtheconsolidatedfinancialstatements.
RevenueRevenuecomprisesthefairvaluefromthesaleofgoods(excludingvalueaddedtax)andisrecognisedintheincomestatementwhenthesignificantrisksandrewardsofownershiphavebeentransferredtothebuyer.Thisgenerallyoccursondelivery/shipmentofgoodstothebuyer.
GovernmentgrantsAgovernmentgrantrelatingtoanon-currentassetisrecognisedinthebalancesheetinitiallyasdeferredincomewhenthereisreasonableassurancethatitwillbereceivedandthattheGroupwillcomplywiththeconditionsattachingtoit.GrantsthatcompensatetheGroupforexpensesincurredarerecognisedasrevenueintheincomestatementonasystematicbasisinthesameperiodinwhichtheexpensesareincurred.GrantsthatcompensatetheGroupforthecostoftheassetarerecognisedintheincomestatementasotheroperatingincomeonasystematicbasisovertheusefullifeoftheasset.
22
Statementofaccountingpolicies(cont’d.)
Leases
Finance lease paymentsLeasesunderthetermsofwhichtheGroupassumessubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases.Theowner-occupiedpropertyacquiredbywayofafinanceleaseisstatedatanamountequaltothelowerofitsfairvalueandthepresentvalueoftheminimumleasepaymentsatinceptionofthelease,lessaccumulateddepreciationandimpairmentlosses.Minimumleasepaymentsareapportionedbetweenthefinancechargeandthereductionoftheoutstandingliability.Thefinancechargeisallocatedtoeachperiodduringtheleasetermsoastoproduceaconstantperiodicrateofinterestontheremainingbalanceoftheliability.
Operating lease paymentsPaymentsmadeunderoperatingleasesarerecognisedintheincomestatementonastraight-linebasisoverthetermofthelease.Leaseincentivespaidarerecognisedintheincomestatementasanintegralpartofthetotalleaseexpenseoverthetermofthelease.
Property,plantandequipmentItemsofproperty,plantandequipmentarestatedatcostordeemedcostlessaccumulateddepreciationandimpairmentlosses.OntransitiontoIFRSasadoptedbytheEU,freeholdlandandbuildingspreviouslycarriedatarevaluedamount,continuedtobecarriedatthatamountastheirdeemedcostatthatdate.Thecostofself-constructedassetsincludesthecostofmaterials,directlabour,theinitialestimate,whererelevant,ofthecostsofdismantlingandremovingitemsandrestoringthesiteonwhichtheyarelocated,andanappropriateproportionofproductionoverheads.
Depreciationiscalculatedtowrite-offthecostlessestimatedresidualvalueofproperty,plantandequipmentonthestraight-linebasisovertheirexpectedusefullives.Theremainingusefullivesoftheassetsarereviewedonaregularbasis.
Depreciationisprovidedonadditionswitheffectfromthefirstdayofthemonthfollowingcommissioningandondisposalsuptotheendofthemonthpriortoretirement,atthefollowingannualrates:
Land NotdepreciatedBuildings 2%Plantandmachinery 7-20%Fixturesandfittings 10-15%Motorvehicles 20%
InventoriesInventoriesarevalued,onthefirst-in,first-outbasis,atthelowerofcostandestimatednetrealisablevalue.Costincludesallexpenditurewhichhasbeenincurredinthenormalcourseofbusinessinbringingtheproductstotheirpresentlocationandcondition.Inthecaseofmanufacturedinventoriesandworkinprogress,costincludesanappropriateshareofoverheadsbasedonnormaloperatingcapacity.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusiness(netoftradediscounts)ofinventoriesonhand,lessallfurthercoststocompletionandsellingexpenses.
ImpairmentThecarryingamountsoftheGroup’sassetsarereviewedateachbalancesheetdatetodeterminewhetherthereisanyindicationofimpairment.Ifanysuchindicationexists,theasset’srecoverableamountisestimatedandanimpairmentprovisionisrecordedintheincomestatement.
Foreigncurrencytranslation
Functional and presentation currencyItemsincludedinthefinancialstatementsofeachoftheGroup’sentitiesaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(“thefunctionalcurrency”).TheGroupfinancialstatementsarepresentedineuro,whichistheCompany’sfunctionalandpresentationcurrency.
Transactions and balancesForeigncurrencytransactionsaretranslatedintothefunctionalcurrencyusingtheexchangeratesprevailingatthedatesofthetransactions.Foreignexchangegainsandlossesresultingfromthesettlementofsuchtransactionsandfromthetranslationatyear-endexchangeratesofmonetaryassetsandliabilitiesdenominatedinforeigncurrenciesarerecognisedintheincomestatement.
23
Statementofaccountingpolicies(cont’d.)
SegmentreportingAbusinesssegmentisagroupofassetsandoperationsengagedinprovidingproductsorservicesthataresubjecttorisksandreturnsthataredifferentfromthoseofotherbusinesssegments.Ageographicalsegmentisengagedinprovidingproductsorserviceswithinaparticulareconomicenvironmentthataresubjecttorisksandreturnsthataredifferentfromthoseofsegmentsoperatinginothereconomicenvironments.StemmingfromtheGroup’sinternalorganisationandmanagementstructureanditssystemofinternalfinancialreporting,segmentationbygeographicareaisregardedasbeingthepredominantsourceandnatureoftherisksandreturnsfacingthegroupandisthustheprimarysegment.Segmentationbybusinessisthereforethesecondarysegment.
SharecapitalIncrementalcostsdirectlyattributabletotheissueofordinarysharesandshareoptionsarerecognisedasareductionfromequity.
EarningspershareTheGrouppresentsbasicanddilutedearningspersharedataforitsordinaryshares,detailsofwhichcanbefoundinnote8.
TradeandotherreceivablesandpayablesTradeandotherreceivablesandpayablesareinitiallyrecordedatfairvalue,andthereafteratamortisedcost,whichapproximatestheirfairvaluegiventheshort-termnatureoftheseassetsandliabilities.AprovisionforimpairmentoftradereceivablesisestablishedwhenthereisobjectiveevidencethattheGroupwillnotbeabletocollectallamountsdueaccordingtotheoriginaltermofthereceivables.
FinanceincomeandexpenseFinanceincomeincludesinterestincomewhichisrecognisedintheincomestatementasitaccrues,usingtheeffectiveinterestratemethod.Financeexpensesincludeinterestexpenseonborrowingsandunwindingofdiscountonprovisions,andarerecognisedintheincomestatementusingtheeffectiveinterestratemethod.
InvestmentsinsubsidiariesInvestmentsinsubsidiariesarestatedatcostlessprovisionsforimpairment.
AdvertisingandpromotionalexpenditureAdvertisingandpromotionalexpenditureiswritten-offtotheincomestatementinfullinthefinancialyearinwhichthecostsareincurred.
ResearchanddevelopmentExpenditureonresearchactivities,undertakenwiththeprospectofgainingnewscientificortechnicalknowledgeandunderstanding,isrecognisedintheincomestatementasanexpenseasincurred.Expenditureondevelopmentactivities,wherebyresearchfindingsareappliedtoaplanordesignfortheproductionofneworsubstantiallyimprovedproductsorprocesses,iscapitalisediftheproductorprocessistechnicallyandcommerciallyfeasibleandtheGrouphassufficientresourcestocompletedevelopment.Theexpenditurecapitalisedincludesthecostofmaterials,directlabourandanappropriateproportionofoverheads.Otherdevelopmentexpenditureisrecognisedintheincomestatementasanexpenseincurred.Capitaliseddevelopmentexpenditureisstatedatcostlessaccumulatedamortisationandimpairmentlosses.
PatentsDirectcostsassociatedwithtakingoutpatentsarecapitalisedandareamortised,onthestraight-linebasis,overtheirexpectedusefullivesfromthedatethecostsareincurred.Provisionsforimpairmentaremadeasrequired.
PensionsThepensionobligationsoftheGrouparemetbypaymentstoadefinedcontributionpensionplan,theannualcontributionstowhicharedealtwithintheincomestatementinthefinancialyeartowhichtheyrelate.
IncometaxIncometaxexpensesontheprofitorlossfortheyearcomprisescurrentanddeferredtax.Taxationisrecognisedintheincomestatementexcepttotheextentthatitrelatestoitemsrecogniseddirectlyinequity,inwhichcasetherelatedtaxisrecognisedinequity.
Currenttaxistheexpectedtaxpayableonthetaxableincomefortheyear,usingtaxratesandlawsthathavebeenenactedorsubstantiallyenactedatthebalancesheetdate,andanyadjustmenttotaxpayableinrespectofpreviousyears.
24
Statementofaccountingpolicies(cont’d.)
Deferredtaxisprovidedusingthebalancesheetliabilitymethod,providingfortemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheamountsusedfortaxationpurposes.Ifthedeferredtaxarisesfrominitialrecognitionofanassetorliabilityinatransactionotherthanabusinesscombinationthatatthetimeofthetransactiondoesnotaffectaccountingnortaxableprofitorloss,itisnotrecognised.
Deferredtaxisprovidedontemporarydifferencesarisingoninvestmentsinsubsidiaries,exceptwherethetimingofthereversalofthetemporarydifferenceiscontrolledbytheGroupanditisprobablethatthetemporarydifferencewillnotreverseintheforseeablefuture.Theamountofdeferredtaxprovidedisbasedontheexpectedmannerofrealisationorsettlementofthecarryingamountofassetsandliabilities,usingtaxratesenactedorsubstantivelyenactedatthebalancesheetdate.
Adeferredtaxassetisrecognisedonlytotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichtheassetcanbeutilised.Deferredtaxassetsarereducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitwillberealised.
DividendsDividendsarerecognisedasaliabilityintheperiodinwhichtheyaredeclared.
CashandcashequivalentsCashandcashequivalents,comprisecashbalancesandcalldeposits,includingbankdepositsoflessthanthreemonthsmaturity.BankoverdraftsthatarerepayableondemandandformanintegralpartoftheGroup’scashmanagementareincludedasacomponentofcashandcashequivalentsforthepurposeofthestatementofcashflows.
DerivativefinancialinstrumentsDerivativesareenteredintotoeconomicallyhedgerecognisedforeigncurrencymonetaryassetsorliabilitiesandarenotaccountedforunderhedgeaccountingbutratheranygainsorlossesarisingarerecognisedintheincomestatement.
NewstandardsandinterpretationsnotyetadoptedAnumberofnewstandards,amendmentstostandardsandinterpretationsarenotyeteffectivefortheyearended31March2007,andhavenotbeenappliedinpreparingtheseconsolidatedfinancialstatements.ThefollowingstandardsandinterpretationshavebeenendorsedbytheEU:• IFRS7,FinancialInstruments:DisclosuresandtheAmendmenttoIAS1PresentationofFinancialStaements:Capital
Disclosuresrequireextensivedisclosuresaboutthesignificanceoffinancialinstrumentsforanentity’sfinancialpositionandperformance,andqualitativeandquantitativedisclosuresonthenatureandextentofrisks.IFRS7andamendedIAS1,whichbecomemandatoryfortheGroupandCompany’s2008financialstatements,willrequireadditionaldisclosureswithrespecttofinancialinstrumentsandsharecapital.
• IFRIC7,ApplyingtheRestatementApproachunderIAS29FinancialReportinginHyperinflationaryEconomiesaddressestheapplicationofIAS29whenaneconomyfirstbecomeshyperinflationaryandinparticulartheaccountingfordeferredtax.IFRIC7,whichbecomesmandatoryfortheGroupandCompany’s2008financialstatements,isnotexpectedtohaveanyimpactonthefinancialstatements.
• IFRIC8,ScopeofIFRS2Share-basedPaymentsaddressestheaccountingforshare-basedpaymenttransactionsinwhichsomeorallofgoodsorservicesreceivedcannotbespecificallyidentified.IFRIC8willbecomemandatoryfortheGroup’sandCompany’s2008financialstatementsbutisnotexpectedtohaveanyimpactonthefinancialstatements.
• IFRIC9,ReassessmentofEmbeddedDerivatives,requiresthatareassessmentofwhetherembeddedderivativeshouldbeseparatedfromtheunderlyinghostcontractshouldbemadeonlywhentherearechangestothecontract.IFRIC9,whichbecomesmandatoryfortheGroup’sandCompany’s2008financialstatements,isnotexpectedtohaveanyimpactonthefinancialstatements.
• IFRIC10,InterimFinancialReportingandImpairment,prohibitsthereversalofanimpairmentlossrecognisedinapreviousinterimperiodinrespectofgoodwill,aninvestmentinanequityinstrumentorafinancialassetcarriedatcost.IFRIC10willbecomemandatoryfortheGroup’sandCompany’s2008financialstatements,andwillapplyprospectivelyfromthedatethattheGroupfirstappliedthemeasurementcriteriaofIAS36andIAS39respectively(i.e.,1April2005).Itisnotexpectedtohaveanyimpactonthefinancialstatements.
• IFRIC11,IFRS2-GroupandTreasuryShareTansactions,whichiseffectiveforannualperiodsbeginningonorafter1March2007,addresseshowshare-basedpaymentarrangementsthataffectmorethanonecompanyinagroupareaccountedforineachCompany’sfinancialstatementsandisnotexpectedtohaveanimpactonthefinancialstatements.
25
Groupincomestatementfortheyearended31March2007
Notes 2007 2006
Revenue 1 5,413,096 5,130,051
Operatingcosts (5,169,246) (5,282,621)
Operatingprofit/(loss)beforefinancecosts 243,850 (152,570)
Financeexpenses 3 (27,599) (49,048)
Profit/(loss)beforeincometax 216,251 (201,618)
Incometaxcredit 6 6,257 21,005
Profit/(loss)aftertaxfortheyear 22 222,508 (180,613)
Profit/(loss)attributabletoequityholdersofthegroup 222,508 (180,613)
Basicearnings/(loss)pershare 8 1.81c (1.47c)
Dilutedearnings/(loss)pershare 8 1.81c (1.47c)
OnbehalfoftheBoard
N.O.Dowling A.P.OglesbyDirector Director
20September2007
26
Groupbalancesheetat31March2007
Notes 2007 2006
ASSETSNon-currentassets
Property,plantandequipment 11 3,576,735 3,870,130Intangibleassets 9 672,034 607,961
Totalnon-current 4,248,769 4,478,091
CurrentassetsInventories 12 975,805 1,104,525Tradeandotherreceivables 13 1,378,963 1,029,904Derivativesandotherfinancialinstruments 24 711 23,698Otherinvestments - 50,791Cashandcashequivalents 23 321,286 121,113
Totalcurrentassets 2,676,765 2,330,031
Totalassets 6,925,534 6,808,122
EquityCapitalandreservesattributabletothecompany’sequityholdersCalledupsharecapital 18 1,477,808 1,477,808Sharepremium 19 1,066,503 1,066,503Otherreserves 20 891,032 902,235Retainedearnings 22 2,289,680 2,055,969Totalequity 5,725,023 5,502,515 LIABILITIES Non-currentliabilitiesFinanceleaseobligations 15 86,848 166,398Deferredgovernmentgrants 16 136,707 140,821Deferredtaxliabilities 17 100,000 106,257Totalnon-currentliabilities 323,555 413,476
Currentliabilities Financeleaseobligations 15 81,550 88,786Tradeandotherpayables 14 795,406 803,345Totalcurrentliabilities 876,956 892,131Totalliabilities 1,200,511 1,305,607
Totalequityandliabilities 6,295,534 6,808,122
OnbehalfoftheBoard
N.O.Dowling A.P.OglesbyDirector Director
27
Note 2007 2006
Cashflowsfromoperatingactivities
Profit/(loss)beforetaxation 216,251 (201,618)
Adjusting items:Amortisationofintangibleassets 24,322 19,224Depreciationofproperty,plantandequipment 402,057 418,763Amortisationofgovernmentgrants (4,114) (4,114)Financeexpenses 27,599 49,048
(Increase)/decreaseintradeandotherreceivables (349,059) 16,446
Decreaseininventories 128,720 26,668
Decreaseinothercurrentassets 22,987 741
(Decrease)/increaseintradeandotherpayables (7,939) 69,541
Totalcashflowfromoperatingactivities 460,824 394,699
Interestpaid (27,599) (25,308)
Netcashprovidedbyoperatingactivities 433,225 369,391Cashflowsfrominvestingactivities Purchaseofproperty,plantandequipment (108,662) (99,616)
Purchaseofintangibleassets (88,395) (82,853)Proceedsfrommaturityofinvestments 50,791 -
Netcashusedininvestingactivities (146,266) (182,469)
Cashflowsfromfinancingactivities Paymentoffinanceleaseliabilities (86,786) (97,580)
Netcashusedinfinancingactivities (86,786) (97,580)
Netincreaseincashandcashequivalents 23 200,173 89,342
Cashandcashequivalentsatbeginningofyear 23 121,113 31,771
Cashandcashequivalentsatendofyear 23 321,286 121,113
Groupcashflowstatementfortheyearended31March2007
28
Groupstatementofchangesinequityfortheyearended31March2007
Capital Share Capital Share Retained redemption Revaluation Total capital reserves premium earnings reserve reserve equity
Balanceat1April2005 1,477,808 170,415 1,066,503 2,225,379 50,903 692,120 5,683,128
Lossforthefinancialyear - - (180,613) - - (180,613)
Transfers - - - 11,203 - (11,203) -
Balanceat31March2006 1,477,808 170,415 1,066,503 2,055,969 50,903 680,917 5,502,515
Profitforthefinancialyear - - 222,508 - - 222,508
Transfers - - - 11,203 - (11,203) -
Balanceat31March2007 1,477,808 170,415 1,066,503 2,289,680 50,903 669,714 5,725,023
29
Note 2007 2006
Assets
Non-currentInvestmentinsubsidiary 10 1,327,261 1,327,261
Totalnon-currentassets 1,327,261 1,327,261
CurrentTradeandotherreceivables 13 3,145,416 3,145,416Otherinvestments - 50,791Cashandcashequivalents 50,791 -
Totalcurrentassets 3,196,207 3,196,207
Totalassets 4,523,468 4,523,468
EquityCalled-upsharecapital 18 1,477,808 1,477,808Sharepremium 19 1,066,503 1,066,503Otherreserves 21 136,788 136,788Retainedearnings 186,309 186,309
Totalequityattributabletoequityshareholdersofparent 2,867,408 2,867,408
LiabilitiesCurrentTradeandotherpayables 14 1,656,060 1,656,060
Totalliabilities 1,656,060 1,656,060
Totalequityandliabilities 4,523,468 4,523,468
OnbehalfoftheBoard
N.O.Dowling A.P.OglesbyDirector Director
Companybalancesheetat31March2007
Notesformingpartofthefinancialstatements
1 Revenue 2007 2006
TheentirerevenueoftheGroupconsistsof manufactureandsaleofhandheldtoolsandaccessories 5,413,096 5,130,051
2 Segmentinformation Analysisofrevenue,allofwhichissourcedintheRepublicofIreland,bygeographicalareaofdestinationisas
follows:
2007 2006
Ireland 98,078 79,991 UnitedKingdom 993,760 819,936 RestofEurope 1,838,931 1,614,323 NorthAmerica 1,939,911 2,018,653 RestofWorld 542,416 597,148
5,413,096 5,130,051
AlloftheGroup'sprofitsareearned,andallofitsassetsaremaintained,andallcashisgeneratedintheRepublicofIreland.
3 Financeexpenses 2007 2006
Onbankoverdrafts 18,455 16,435 Onfinanceleases 9,144 8,873 Fairvalueofderivativemovements - 23,740
27,599 49,048
Allinterestisdealtwithintheincomestatement.Nointerestwascapitalisedduringtheyear.
30
Companycashflowstatementfortheyearended31March2007
2007 2006
CashflowsfrominvestingactivitiesProceedsfromthematuringofinvestments 50,791 -
Netcashfrominvestingactivities 50,791 -
Netincreaseincashandcashequivalents 50,791 -
Cashandcashequivalentsatbeginningofyear - -
Cashandcashequivalentsatendofyear 50,791 -
Companystatementofchangesinequityfortheyearended31March2007
Capital Share Capital Share Retained redemption Total capital reserves premium earnings reserve equity
Balanceat1April2005,31March2006and31March2007 1,477,808 85,885 1,066,503 186,309 50,903 2,867,408
31
Notesformingpartofthefinancialstatements
1 Revenue 2007 2006
TheentirerevenueoftheGroupconsistsof manufactureandsaleofhandheldtoolsandaccessories 5,413,096 5,130,051
2 Segmentinformation Analysisofrevenue,allofwhichissourcedintheRepublicofIreland,bygeographicalareaofdestinationisas
follows:
2007 2006
Ireland 98,078 79,991 UnitedKingdom 993,760 819,936 RestofEurope 1,838,931 1,614,323 NorthAmerica 1,939,911 2,018,653 RestofWorld 542,416 597,148
5,413,096 5,130,051
AlloftheGroup'sprofitsareearned,andallofitsassetsaremaintained,andallcashisgeneratedintheRepublicofIreland.
3 Financeexpenses 2007 2006
Onbankoverdrafts 18,455 16,435 Onfinanceleases 9,144 8,873 Fairvalueofderivativemovements - 23,740
27,599 49,048
Allinterestisdealtwithintheincomestatement.Nointerestwascapitalisedduringtheyear.
32
Notes(continued)
4 Employeesandremuneration
TheaveragenumberofpersonsemployedbytheGroup(includingexecutivedirectors)duringtheyear,analysedbycategory,wasasfollows:
2007 2006 Numbers Numbers
Administrationandmanagement 9 9 Sellinganddistribution 2 4 Production 60 63 Researchanddevelopment 2 2
73 78
Theaggregatepayrollcostsoftheseemployeeswereasfollows: 2007 2006
Wagesandsalaries 1,871,062 1,786,007 Socialwelfarecosts 179,593 175,476 Otherpensioncosts 72,312 76,384
2,122,967 2,037,867
5 Statutoryandotherinformation
ReportonDirectors'remuneration:
Executive directors Total Salaries Benefits Pension Fees inKind Contributions
2007 2006 2007 2006 2007 2006 2007 2006 2007 2006
A.P.Oglesby 175,963 168,798 162,560 155,289 13,403 13,509 - - - - J.P.Oglesby 190,792 174,243 144,306 123,943 9,566 13,380 36,920 36,920 - -
366,755 343,041 306,866 279,232 22,969 26,889 36,920 36,920 - -
Numberof executivedirectors 2 2
Non-executive directors N.O.Dowling 27,211 28,835 20,950 20,950 - 1,265 - - 6,261 6,620 T.P.Byrne 24,000 24,000 - - - - - - 24,000 24,000 51,211 52,835 20,950 20,950 - 1,265 - - 30,261 30,620
Numberof non-executivedirectors 2 2
33
Notes(continued)
5 Statutoryandotherinformation(cont’d)
Othercharges/(credits): 2007 2006
Rawmaterialsrecognisedasanexpense 1,219,081 1,113,247 Auditor’sremuneration: 52,605 51,600 Operatingleaserentals-equipment 8,826 12,627 Amortisationofintangibleassets 24,322 19,224 Depreciationofproperty,plantandequipment 402,057 418,763 Researchanddevelopmentexpenditure 164,841 208,638 Amortisationofgovernmentcapitalgrants (4,114) (4,114) Restructuringofcontinuingoperations - 259,261
6 Incometaxcredit Analysisofcreditinperiod 2007 2006
Current tax Corporationtaxonprofits/(losses)fortheyear - -
Total current tax: - -
Deferred tax: Originationandreversaloftemporarydifferences(note17) 6,257 21,005
Taxcreditonprofit/(loss) 6,257 21,005
Factorsaffectingtaxchargeforperiod
ThetaxassessedfortheyearisdifferentthanthestandardrateofcorporationtaxintheRepublicofIreland.Thedifferencesareexplainedbelow:
2007 2006
Profit/(loss)beforetax 216,251 (201,618)
Profit/(loss)multipliedby thestandardrateoftaxof12.5% 27,031 (25,202)
Effects of: Incometaxableatlower/higherrates (5,406) 5,040 Adjustmenttostandardrates (5,264) 5,674 Incomenottaxable (22,618) (6,517)
Totaltaxcreditforyear (6,257) (21,005)
TheeffectiverateofcorporationtaxhasbeenreducedduetotheprovisionsofSection234CTA1997,relatingto
taxexemptroyaltyincomeandbecausetheGroupavailsofmanufacturingreliefwhichisduetoexpirein2010.
7 Dividends 2007 2006
Dividendspaidinyear Nil Nil
34
11 Property,plantandequipment
2007 Freehold Plant Group land& equipment& buildings motorvehicles Total
Cost Atbeginningofyear 2,460,989 6,266,199 8,727,188 Additions - 108,662 108,662 Atendofyear 2,460,989 6,374,861 8,835,850
Depreciation Atbeginningofyear 259,028 4,598,030 4,857,058 Chargedduringyear 46,057 356,000 402,057
Atendofyear 305,085 4,954,030 5,259,115
Netbookvalue At31March2007 2,155,904 1,420,831 3,576,735
At31March2006 2,201,961 1,688,169 3,870,130
2006 Freehold Plant Group land& equipment& buildings motorvehicles Total
Cost Atbeginningofyear 2,460,989 6,019,916 8,480,905 Additions - 246,283 246,283 Atendofyear 2,460,989 6,266,199 8,727,188
Depreciation Atbeginningofyear 222,641 4,215,654 4,438,295 Chargedduringyear 36,387 382,376 418,763
Atendofyear 259,028 4,598,030 4,857,058
Netbookvalue At31March2006 2,201,961 1,668,169 3,870,130
At31March2005 2,238,348 1,804,262 4,042,610
Security At31March2007achargewasregisteredovertheGroup’sinterestinlandbasedinCarlow.
Other Thedepreciableelementoffreeholdlandandbuildings,namelybuildings,amountedto1,728,075(2006:
1,728,075).
Assetsheldunderfinanceleases,atcostlessaccumulateddepreciation,includedinproperty,plantandequipment,amountedto643,466(2006:761,249).Thedepreciationchargeduringtheyearonsuchassetsamountedto117,783(2006:120,595).
Notes(continued)
8 Earnings/(loss)pershare 2007 2006
Profit/(loss)attributabletoordinaryshareholders 222,508 (180,613)
Weightedaveragenumberofordinaryshares inissueduringtheyear 12,315,082 12,315,082
Basicearnings/(loss)pershare 1.81c (1.47c)
Fullydilutedearnings/(loss)pershare 1.81c (1.47c)
Thecalculationoffullydilutedearnings/(loss)pershareisbasedontheprofitattributabletoordinaryshareholdersof222,508 (2006 loss: 180,613) and theweightedaveragenumberof ordinary sharesoutstanding, afteradjustingforshareoptionsoutstandingofnil(2006:30,000).Thedilutiveeffectofsuchoptionsamountedtonil(2006:16,957)shares,givinganotionalnumberof12,315,082ordinarysharesinissue.
9 Intangibleassets Patents Group
Cost Atbeginningofyear 1,001,085 Additions 88,395
Atendofyear 1,089,480
Amortisation Atbeginningofyear 393,124 Chargedduringyear 24,322
Atendofyear 417,446 Netbookvalue At31March2007 672,034
At31March2006 607,961
10 Investmentinsubsidiaries
2007 2006 Company
Sharesatcost 1,327,515 1,327,515 Less:provisionsforimpairmentinvalue (254) (254)
1,327,261 1,327,261
IntheopinionoftheDirectors,thevalueoftheinvestmentsisatleastequaltotheircarryingamount.DetailsofGroupundertakingsaresetoutinnote27.
Notes(continued)
35
11 Property,plantandequipment
2007 Freehold Plant Group land& equipment& buildings motorvehicles Total
Cost Atbeginningofyear 2,460,989 6,266,199 8,727,188 Additions - 108,662 108,662 Atendofyear 2,460,989 6,374,861 8,835,850
Depreciation Atbeginningofyear 259,028 4,598,030 4,857,058 Chargedduringyear 46,057 356,000 402,057
Atendofyear 305,085 4,954,030 5,259,115
Netbookvalue At31March2007 2,155,904 1,420,831 3,576,735
At31March2006 2,201,961 1,688,169 3,870,130
2006 Freehold Plant Group land& equipment& buildings motorvehicles Total
Cost Atbeginningofyear 2,460,989 6,019,916 8,480,905 Additions - 246,283 246,283 Atendofyear 2,460,989 6,266,199 8,727,188
Depreciation Atbeginningofyear 222,641 4,215,654 4,438,295 Chargedduringyear 36,387 382,376 418,763
Atendofyear 259,028 4,598,030 4,857,058
Netbookvalue At31March2006 2,201,961 1,668,169 3,870,130
At31March2005 2,238,348 1,804,262 4,042,610
Security At31March2007achargewasregisteredovertheGroup’sinterestinlandbasedinCarlow.
Other Thedepreciableelementoffreeholdlandandbuildings,namelybuildings,amountedto1,728,075(2006:
1,728,075).
Assetsheldunderfinanceleases,atcostlessaccumulateddepreciation,includedinproperty,plantandequipment,amountedto643,466(2006:761,249).Thedepreciationchargeduringtheyearonsuchassetsamountedto117,783(2006:120,595).
Notes(continued)
36
12 Inventories 2007 2006 Group
Finishedgoods 7,160 13,831 Workinprogress 587,106 700,126 Rawmaterials 381,539 390,568
975,805 1,104,525
13 Tradeandotherreceivables 2007 2006
Group Tradedebtors 1,018,448 727,184 Prepaymentsandaccruedincome 360,515 302,720
1,378,963 1,029,904
Impairmentprovisionsarenotmaterial
Company
AmountsowedbyGroupundertakings 3,145,416 3,145,416
AmountsowedbyGroupundertakingsareinterestfreeandrepayableupondemand
14 Tradeandotherpayables 2007 2006 Group
Tradecreditors 398,716 456,171 Accrualsanddeferredincome 322,805 320,671 Othercreditorsincludingtaxandsocialwelfare 73,885 26,503
795,406 803,345 Company
AmountsowedtoGroupundertakings 1,656,060 1,656,060
AmountsowedbyGroupundertakingsareinterestfreeandrepayableupondemand
15 Financeleaseobligations Financeleaseliabilitiesarepayableasfollows: Minimum Minimum lease lease payments Interest Principal payments Interest Principal 2007 2007 2007 2006 2006 2006
Lessthanoneyear 93,272 11,722 81,550 97,999 9,213 88,786 Betweenoneandfiveyears 94,641 7,793 86,848 185,849 19,451 166,398
187,913 19,515 168,398 283,848 28,664 255,184
Notes(continued)
37
16 Deferredgovernmentgrants
2007 2006 Group
Received and receivable 524,484 524,484
Amortisation Atbeginningofyear 383,663 379,549 Releasedduringyear 4,114 4,114
Atendofyear 387,777 383,663
Netbookvalue 136,707 140,821
17 Deferredtaxation
Recogniseddeferredtaxassetsandliabilities
Group Group Net(assets)/ Net(assets)/ Assets Liabilities liabilities Assets Liabilities liabilities 2007 2007 2007 2006 2006 2006
Property,plantandequipment - 279,514 279,514 - 298,597 298,597 Deferredgovernmentgrants (17,088) - (17,088) (17,603) - (17,603) Otherpayables (3,867) - (3,867) (3,867) - (3,867) Otheritems (21,053) - (21,053) (7,338) - (7,338) Taxvalueoflosses (137,506) - (137,506) (163,532) - (163,532)
Tax(asset)/liability (179,514) 279,514 100,000 (192,340) 298,597 106,257
Analysisofdeferredtaxliability-Group
Balanceat Balanceat Balanceat Balanceat 1April Recognised 31March 1April Recognised 31March 2006 inincome 2007 2005 inincome 2006
Property,plant&equip. 298,597 (19,083) 279,514 295,514 3,083 298,597 Deferredgovt.grants (17,603) 515 (17,088) (18,140) 537 (17,603) Otherpayables (3,867) - (3,867) (19,586) 15,719 (3,867) Otheritems (7,338) (13,715) (21,053) (2,249) (5,089) (7,338) Taxvalueoflosses (163,532) 26,026 (137,506) (128,277 (35,255) (163,532)
Tax(asset)/liability (106,257) (6,257) 100,000 127,262 (21,005) 106,257
Company
ThereisnopotentialliabilityfordeferredtaxationintheCompany.
Notes(continued)
38
22 Retainedearnings
Movement on Group retained earnings 2007 2006
Balanceatbeginningofyear 2,055,969 2,225,379
Profit/(loss)fortheyear 222,508 (180,613) Transferfromrevaluationreserve 11,203 11,203
Balanceatendofyear 2,289,680 2,055,969
Company
TheCompanyreturnedaNilprofitfortheyear(2006:Nil)
23 Analysisofdebt
Atbeginning Non-cash Cash Atend ofyear movements flow ofyear
Cashatbankandinhand 121,113 - 200,173 321,286 Obligations under finance leases: duewithinoneyear (88,786) (79,550) 86,786 (81,550) dueafteroneyear (166,398) 79,550 (86,848)
(255,184) - 86,786 (168,398)
(134,071) - 286,959 (152,888)
24 Financialcommitments
Group
Capital commitments Capitalexpenditurecommitmentsexistingatthebalancesheetdatewhichwerenotprovidedforinthe
financialstatementsamountedto9,217(2006:46,989).
Currency commitments Forwardratecurrencycommitmentstohedgesalesatthebalancesheetdatewereasfollows:
2007 2006 Currency Amount Weighted Amount Weighted Average Average Rates Rates
USdollars Nil Nil 970,000 1.2128 Poundssterling 238,000 0.6769 11,750 0.7224
Thesecontractsfallduebetween1April2007and30September2007.
Finance leases Therewerenocommitmentsexistingatthebalancesheetdateinrespectoffinanceleaseswhichhadbeen
enteredintobutwhichcommencedaftertheyearend(2006:Nil).
Notes(continued)
18 Issuedcapital
GroupandCompany
Authorised 50,000,000ordinarysharesof12ceach
Atbeginningandendofyear 6,000,000 Allotted, called up and fully paid Ordinarysharesof12ceach-12,315,082ordinaryshares
Atbeginningandendofyear 1,477,808
Theholdersofordinarysharesareentitledtoreceivedividendsasdeclaredfromtimetotime,andareentitledtoonevotepershareatmeetingsoftheCompany.
19 Sharepremiumaccount 2007 2006
GroupandCompany Atbeginningandendofyear 1,066,503 1,066,503
20 Reserves
Capital reserve
Thecapitalreserveincludes84,530ofanon-distributablereservesetupbyaGroupundertaking,underthetermsofagovernmentgrantagreement.
Capitalredemptionreservefund
ThisreservearoseontheredemptionofsharesintheCompanyinprioryears.
Revaluationreservefund
Therevaluationreserverelatestotherevaluationsurplusarisingonarevaluationofproperty,plantandequipmentwhichtookplaceon31March1999.Thefreeholdandlongleaseholdlandandbuildingswerevaluedbyindependentvaluers,SothernAuctioneersLtd.M.I.A.V.I.of37DublinStreet,Carlow,usinganexistinguseopenmarketbasis.Thevaluationresultedinasurplusoverbookamountof1,383,763whichwasthencreditedtootherreserves.
21 Otherreserves-Company Capital redemption Capital reserve reserve Total
Atbeginningandendofyear 50,903 85,885 136,788
Notes(continued)
39
22 Retainedearnings
Movement on Group retained earnings 2007 2006
Balanceatbeginningofyear 2,055,969 2,225,379
Profit/(loss)fortheyear 222,508 (180,613) Transferfromrevaluationreserve 11,203 11,203
Balanceatendofyear 2,289,680 2,055,969
Company
TheCompanyreturnedaNilprofitfortheyear(2006:Nil)
23 Analysisofdebt
Atbeginning Non-cash Cash Atend ofyear movements flow ofyear
Cashatbankandinhand 121,113 - 200,173 321,286 Obligations under finance leases: duewithinoneyear (88,786) (79,550) 86,786 (81,550) dueafteroneyear (166,398) 79,550 (86,848)
(255,184) - 86,786 (168,398)
(134,071) - 286,959 (152,888)
24 Financialcommitments
Group
Capital commitments Capitalexpenditurecommitmentsexistingatthebalancesheetdatewhichwerenotprovidedforinthe
financialstatementsamountedto9,217(2006:46,989).
Currency commitments Forwardratecurrencycommitmentstohedgesalesatthebalancesheetdatewereasfollows:
2007 2006 Currency Amount Weighted Amount Weighted Average Average Rates Rates
USdollars Nil Nil 970,000 1.2128 Poundssterling 238,000 0.6769 11,750 0.7224
Thesecontractsfallduebetween1April2007and30September2007.
Finance leases Therewerenocommitmentsexistingatthebalancesheetdateinrespectoffinanceleaseswhichhadbeen
enteredintobutwhichcommencedaftertheyearend(2006:Nil).
Notes(continued)
40
27 Groupundertakings
ThefollowingaretheGroupundertakingsofOglesby&ButlerGroupplc,allofwhichareincludedintheconsolidatedfinancialstatements,andwhichareincorporatedandoperatingintheRepublicofIrelandunlessotherwisestated.
Nameand Principal Percentageheldby: registeredoffice activity Company Group undertaking
Oglesby&ButlerLimited Manufactureand 100% - IndustrialEstate,O’BrienRoad,Carlow distributionofpowertools
Oglesby&ButlerTechnologyLimited Patentlicensing 100% - IndustrialEstate,O'BrienRoad,Carlow
Oglesby&ButlerIreland Investmentholding 100% - IndustrialEstate,O’BrienRoad,Carlow
Oglesby&ButlerInvestments Investmentholding 100% - IndustrialEstate,O’BrienRoad,Carlow
PortagasLimited Non-trading - 100% IndustrialEstate,O’BrienRoad,Carlow
PortasolInc.(UnitedStatesofAmerica) Non-trading 100% - CorporationTrustCentre,1209OrangeStreet, Wilmington,NewCastle,Delaware,U.S.A.
Oglesby&ButlerResearch&DevelopmentLimited Non-trading 100% IndustrialEstate,O’BrienRoad,Carlow
AllshareholdingsinGroupundertakingsconsistofordinaryshares.
28 Relatedpartytransactions
UnderIAS24Related party disclosures,theGrouphasarelatedpartyrelationshipwithitskeymanagement.TheGroupandCompanyhasdefineditskeymanagementasitsdirectorsandseniormanagers.Detailsofthecompensationofkeymanagementissetoutbelow.
Key management remuneration including non-executives 2007 2006 Number Number Numberofindividuals 6 6
Salariesandothershort-termemployeebenefits chargedtotheincomestatement 584,492 525,532
Comprisingthefollowing Directors 417,966 395,876 Otherkeymanagementpersonnel 166,526 129,656
584,492 525,532 TheCompanydidnottradeduringtheyearanddetailsofbalanceswithrelatedpartiesaresetoutinnotes13
and14.
29 Boardapproval
Theboardofdirectorsapprovedthesefinancialstatementson20September2007.
Notes(continued)
24 Financialcommitments(cont’d.)
Operating leases Commitmentsundernon-cancellableoperatingleasesinrespectofplant,fixturesandmotorvehicleswereasfollows: 2007 2006 Expiring:
Withinoneyear 11,892 11,710 Betweentwoandfiveyears 21,776 32,644
33,668 44,354
25 Financialinstruments
Foreign currency risk
ThemajorityofgroupsalesaredenominatedinforeigncurrencieswhiletheGroupsourcesrawmaterialsfromIrelandandtheUK.TheGroup'spolicyistoeliminateanynetcurrencyexposureonitspurchasesandsalesthroughforwardcurrencycontracts.TheGrouphadnonetcurrencyexposureonitsfinancialassetsorliabilitiesat31March2007.TheGrouphastakenoutforwardcontractsinexcessofthevalueofforeigncurrencydebtorsandcreditorstohedgeagainstpostyearendpurchasesandsalesinordertoprotectprofitmarginsinthenextaccountingperiod.
Thefairvalueoftotalunrecognisedgainsonforeigncurrencyforwardcontractstranslatedatthespotrateprevailingatthebalancesheetdatewas711,(2006:23,698).Theseareexpectedtomaterialiseinthenextaccountingperiod.
Interest rate risk
TheGrouphasnofinancialassetsotherthanshort-termdebtorsandcashdeposits. Cashdepositsof321,286(2006:121,113)areatfloatingrates.
TheGroup'sfinancialliabilitiesarecomprisedoffinanceleaseobligationsamountingto168,398assetoutinNote15.Othercreditorsandaccrualsallhaveshort-termmaturitydates.
Theinterestrateprofileoffinancialliabilitiesatthebalancesheetdatewasasfollows:
2007 2006 Floating Fixedrate Floatingrate Fixedrate ratefinancial financial financial financial liabilities liabilities liabilities liabilities
Weightedaverageinterestrate n/a 10.80% n/a 11.23%
Weightedaverageperiodforwhichrateisfixed n/a 2.86years n/a 3.37years
Fairvalues
Thefairvaluesoffinancialassetsandliabilitiesasshownonthebalancesheetapproximatetheircarryingvalues.
26 Pensions
Pensionsforemployeesarisefromadefinedcontributionscheme.Thesepensionsarefundedthroughanexternalpensionschemeforthesolebenefitofqualifyingemployeesortheirdependants.Thepensionfundchargefortheperiodwas72,312(2006:76,384)andoutstandingcontributionsatthebalancesheetdateamountedto16,051(2006:8,662).
Notes(continued)
41
27 Groupundertakings
ThefollowingaretheGroupundertakingsofOglesby&ButlerGroupplc,allofwhichareincludedintheconsolidatedfinancialstatements,andwhichareincorporatedandoperatingintheRepublicofIrelandunlessotherwisestated.
Nameand Principal Percentageheldby: registeredoffice activity Company Group undertaking
Oglesby&ButlerLimited Manufactureand 100% - IndustrialEstate,O’BrienRoad,Carlow distributionofpowertools
Oglesby&ButlerTechnologyLimited Patentlicensing 100% - IndustrialEstate,O'BrienRoad,Carlow
Oglesby&ButlerIreland Investmentholding 100% - IndustrialEstate,O’BrienRoad,Carlow
Oglesby&ButlerInvestments Investmentholding 100% - IndustrialEstate,O’BrienRoad,Carlow
PortagasLimited Non-trading - 100% IndustrialEstate,O’BrienRoad,Carlow
PortasolInc.(UnitedStatesofAmerica) Non-trading 100% - CorporationTrustCentre,1209OrangeStreet, Wilmington,NewCastle,Delaware,U.S.A.
Oglesby&ButlerResearch&DevelopmentLimited Non-trading 100% IndustrialEstate,O’BrienRoad,Carlow
AllshareholdingsinGroupundertakingsconsistofordinaryshares.
28 Relatedpartytransactions
UnderIAS24Related party disclosures,theGrouphasarelatedpartyrelationshipwithitskeymanagement.TheGroupandCompanyhasdefineditskeymanagementasitsdirectorsandseniormanagers.Detailsofthecompensationofkeymanagementissetoutbelow.
Key management remuneration including non-executives 2007 2006 Number Number Numberofindividuals 6 6
Salariesandothershort-termemployeebenefits chargedtotheincomestatement 584,492 525,532
Comprisingthefollowing Directors 417,966 395,876 Otherkeymanagementpersonnel 166,526 129,656
584,492 525,532 TheCompanydidnottradeduringtheyearanddetailsofbalanceswithrelatedpartiesaresetoutinnotes13
and14.
29 Boardapproval
Theboardofdirectorsapprovedthesefinancialstatementson20September2007.
Notes(continued)
42
Fiveyearsummary
2007 2006 2005 2004 2003 ’000 ’000 ’000 ’000 ’000
Revenue 5,413 5,130 5,121 4,907 5,549
Operatingprofit/(loss) 244 (153) (146) (85) 287
Financeexpenses (28) (49) (83) (31) (49)
Profit/(loss)beforeincometax 216 (202) (229) (116) 238
Taxcredit 6 21 31 21 26
Profit/(loss)forthefinancialyear 222 (181) (198) (95) 264
Dividendspershare(cent) Nil Nil Nil 0.25 0.57
Dividendcover(times) n/a n/a n/a n/a 3.75
Basicearnings/(loss) 1.81 (1.47) (1.60) (0.76) 2.14
Depreciation(euro) 402.1 418.8 425.9 412.6 432.9
Netassetspershare(cent) 46.48 44.68 46.14 49.47 50.49
Note: Figuresfor2003and2004arestatedunderIrishGAAPAccountingPrinciples,2005,2006,2007arestatedandpreparedinaccordancewithInternationalFinancialReportingStandards(IFRS's)asadoptedbytheEU.
Notes
44
Noticeofmeeting
AnnualGeneralMeeting
TheAnnualGeneralMeetingoftheGroupwillbeheldatHiltonDublinHotel,CharlemontPlace,Dublin2,at12.00noonon21November2007forthefollowingpurposes:
1. ToreceiveandconsidertheFinancialStatementsandReportsoftheDirectorsandAuditorfortheyearended31March2007.
2.
3. ToauthorisetheDirectorstoapprovetheAuditor’sremuneration.
4. Toconsiderand,ifthoughtfit,topassthefollowingasaSpecialResolution:
"Thatinaccordancewiththepowers,provisionsandlimitationsofArticle8(e)oftheCompany'sArticlesofAssociation,theDirectorsbeandareherebyauthorisedtoallotequitysecuritiesforcashandinrespectofsub-paragraph(ii)thereofuptoanaggregatenominalvalueof147,780."
SpecialBusiness
Toconsider,andifthoughtfit,topassthefollowingasSpecialResolutions:
5. “Thattheauthoritytomakemarketpurchases(withinthemeaningofSection212oftheCompaniesAct,1990(“theAct”))grantedbyResolution5passedattheAnnualGeneralMeetingoftheCompanyheldon10November2006beandisherebyrenewedandshallexpireatthecloseofbusinessontheearlierdateofthenextAnnualGeneralMeetingoftheCompanyand10March2008unlesspreviouslyrevoked,variedorrenewedinaccordancewiththeprovisionsofSection215oftheAct,buttheCompany,oranysubsidiary,mayenterintoacontractorcontractstopurchasesharesofanyclassinthecapitaloftheCompany(“Shares”)undertheauthorityherebyrenewedpriortotheexpiryofsuchauthoritywhichwouldbeormightbeexecutedwhollyorpartlyaftertheexpiryofsuchauthorityandmaymakeapurchaseofSharesinpursuanceofsuchcontractorcontracts,notwithstandingthatthisauthorityhasotherwiseexpired.”
Notes
Noticeofmeeting
AnnualGeneralMeeting
TheAnnualGeneralMeetingoftheGroupwillbeheldatHiltonDublinHotel,CharlemontPlace,Dublin2,at12.00noonon21November2007forthefollowingpurposes:
1. ToreceiveandconsidertheFinancialStatementsandReportsoftheDirectorsandAuditorfortheyearended31March2007.
2.
3. ToauthorisetheDirectorstoapprovetheAuditor’sremuneration.
4. Toconsiderand,ifthoughtfit,topassthefollowingasaSpecialResolution:
"Thatinaccordancewiththepowers,provisionsandlimitationsofArticle8(e)oftheCompany'sArticlesofAssociation,theDirectorsbeandareherebyauthorisedtoallotequitysecuritiesforcashandinrespectofsub-paragraph(ii)thereofuptoanaggregatenominalvalueof147,780."
SpecialBusiness
Toconsider,andifthoughtfit,topassthefollowingasSpecialResolutions:
5. “Thattheauthoritytomakemarketpurchases(withinthemeaningofSection212oftheCompaniesAct,1990(“theAct”))grantedbyResolution5passedattheAnnualGeneralMeetingoftheCompanyheldon10November2006beandisherebyrenewedandshallexpireatthecloseofbusinessontheearlierdateofthenextAnnualGeneralMeetingoftheCompanyand10March2008unlesspreviouslyrevoked,variedorrenewedinaccordancewiththeprovisionsofSection215oftheAct,buttheCompany,oranysubsidiary,mayenterintoacontractorcontractstopurchasesharesofanyclassinthecapitaloftheCompany(“Shares”)undertheauthorityherebyrenewedpriortotheexpiryofsuchauthoritywhichwouldbeormightbeexecutedwhollyorpartlyaftertheexpiryofsuchauthorityandmaymakeapurchaseofSharesinpursuanceofsuchcontractorcontracts,notwithstandingthatthisauthorityhasotherwiseexpired.”
Formofproxy
AnnualGeneralMeeting
I/Wetheundersigned,beingaShareholder(s)oftheCompany
Signature...........................................................................................
NameinFull.....................................................................................
Address............................................................................................................................................................................................................................
...................................................................................................................................................................................Date...............................................
HEREBYAPPOINTthedulyappointedChairmanoftheMeeting*
...........................................................................................................of............................................................................................................................
asmy/ourproxytovoteforme/usonmy/ourbehalfattheAnnualGeneralMeetingoftheCompanytobeheldatHiltonDublinHotel,CharlemontPlace,Dublin2,at12.00noonon21November2007andatanyadjournmentthereof.
OrdinaryBusiness For Against1. ConsiderationofFinancialStatements ❑ ❑2. Electionof ❑ ❑
3. AuthorisetheDirectorstofixtheAuditor’sremuneration ❑ ❑
4. Waiverofstatutorypre-emptionrights ❑ ❑
SpecialBusiness
5. Authoritytopurchaseownshares ❑ ❑
6. Authoritytore-issuetreasuryshares ❑ ❑
NOTES
1. *IfyouwishtoappointaproxyotherthantheChairmanoftheMeetingpleaseinsertthatperson’snameandaddressanddelete(initiallingthedeletion)"theChairmanoftheMeeting".ThecompletionoftheformofproxywillnotprecludeshareholdersfromattendingandvotingattheAGM.
2. Pleaseindicate,byinsertingXintheappropriatebox,thewayinwhichyourproxyistovoteonthespecifiedResolutions.Ifyoudonotdoso,yourproxywillvoteorabstainashe/shethinksfit.OnanyotherbusinesswhichmayproperlycomebeforetheMeeting(includinganymotiontoamendaResolutionoradjourntheMeeting),theproxywillactathis/herdiscretion.
3. Thisformofproxymustbesignedbytheappointerorhis/herattorneydulyauthorisedinwritingor,iftheappointerisacorporation,itmustbeunderitscommonsealorbesignedbysomeofficerorattorneydulyauthorisedinthatbehalf.
4. Tobevalid,thisFormofProxyandthePowerofAttorneyorotherauthority(ifany)underwhichitissignedmustbelodgedattheofficeoftheRegistraroftheCompany,ComputershareServices(Ireland)Limited,atHeronHouse,CorrigRoad,Sandyford,Dublin18atleast48hoursbeforethetimeappointedfortheholdingoftheMeeting.
5. Inthecaseofjointshareholders,seniorityshallbedeterminedbytheorderinwhichthenamesstandintheRegisterofMembers;thusthevoteoftheseniorjointshareholder,whotendersavote,whetherinpersonorbyproxy,shallbeacceptedtotheexclusionofthevote(s)oftheotherjointholder(s).
Noticeofmeeting(continued)
6. “ThatsubjecttothepassingofResolution5aboveandtotheprovisionsoftheCompaniesAct,1990,(“theAct”),forthepurposesofSection209oftheActthere-issuepricerangeatwhichanytreasuryshares(asdefinedbythesaidSection209)forthetimebeingheldbytheCompanymaybere-issuedoff-marketshallbeinaccordancewiththetermssetforthinResolution6passedattheAnnualGeneralMeetingoftheCompanyheldon10November2006andthattheauthorityherebyconferredshallexpireatthecloseofbusinessontheearlierofthedateofthenextAnnualGeneralMeetingoftheCompanyand10March2008unlesspreviouslyvaried,revokedorrenewedinaccordancewiththeprovisionsofSection209oftheAct”.
7. Totransactanyotherordinarybusinessoftheboard.
ByorderoftheBoard:
MichaelBoranSecretary RegisteredOffice: IndustrialEstate, O'BrienRoad,
20September2007 Carlow.
NOTES
1. Amemberentitledtoattendandvoteisentitledtoappointoneormoreproxiestoattendandvoteonhisorherbehalf.AproxyneednotbeamemberoftheCompany.
2. TheshareregisterandregisterofDirectors'andSecretary'sinterests,togetherwithcopiesofcontractsofservicebetweenDirectorsandtheCompanyoranyofitsgroupundertakings,willbeavailableforinspectionattheregisteredofficeoftheCompanyduringnormalbusinesshoursfromthedateofthisnoticeuntilthedateofthemeetingandonthatdateattheplaceofthemeetingfrom11.15a.m.untilitsconclusion.
Formofproxy
AnnualGeneralMeeting
I/Wetheundersigned,beingaShareholder(s)oftheCompany
Signature...........................................................................................
NameinFull.....................................................................................
Address............................................................................................................................................................................................................................
...................................................................................................................................................................................Date...............................................
HEREBYAPPOINTthedulyappointedChairmanoftheMeeting*
...........................................................................................................of............................................................................................................................
asmy/ourproxytovoteforme/usonmy/ourbehalfattheAnnualGeneralMeetingoftheCompanytobeheldatHiltonDublinHotel,CharlemontPlace,Dublin2,at12.00noonon21November2007andatanyadjournmentthereof.
OrdinaryBusiness For Against1. ConsiderationofFinancialStatements ❑ ❑2. Electionof ❑ ❑
3. AuthorisetheDirectorstofixtheAuditor’sremuneration ❑ ❑
4. Waiverofstatutorypre-emptionrights ❑ ❑
SpecialBusiness
5. Authoritytopurchaseownshares ❑ ❑
6. Authoritytore-issuetreasuryshares ❑ ❑
NOTES
1. *IfyouwishtoappointaproxyotherthantheChairmanoftheMeetingpleaseinsertthatperson’snameandaddressanddelete(initiallingthedeletion)"theChairmanoftheMeeting".ThecompletionoftheformofproxywillnotprecludeshareholdersfromattendingandvotingattheAGM.
2. Pleaseindicate,byinsertingXintheappropriatebox,thewayinwhichyourproxyistovoteonthespecifiedResolutions.Ifyoudonotdoso,yourproxywillvoteorabstainashe/shethinksfit.OnanyotherbusinesswhichmayproperlycomebeforetheMeeting(includinganymotiontoamendaResolutionoradjourntheMeeting),theproxywillactathis/herdiscretion.
3. Thisformofproxymustbesignedbytheappointerorhis/herattorneydulyauthorisedinwritingor,iftheappointerisacorporation,itmustbeunderitscommonsealorbesignedbysomeofficerorattorneydulyauthorisedinthatbehalf.
4. Tobevalid,thisFormofProxyandthePowerofAttorneyorotherauthority(ifany)underwhichitissignedmustbelodgedattheofficeoftheRegistraroftheCompany,ComputershareServices(Ireland)Limited,atHeronHouse,CorrigRoad,Sandyford,Dublin18atleast48hoursbeforethetimeappointedfortheholdingoftheMeeting.
5. Inthecaseofjointshareholders,seniorityshallbedeterminedbytheorderinwhichthenamesstandintheRegisterofMembers;thusthevoteoftheseniorjointshareholder,whotendersavote,whetherinpersonorbyproxy,shallbeacceptedtotheexclusionofthevote(s)oftheotherjointholder(s).
Computershare Services (Ireland) LimitedP.O. Box 954Business Reply CentreDublin 18
Licence No. DN 4918
No Postage Stamp necessary if posted in Republic of Ireland
POSTAGE WILL BE PAIDBY LICENSEE
Please affix Postage Stamp if posted in G. Britain, Channel Islands or N. Ireland
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