Aero Inventory plc
annual report and accounts 2008
United Kingdom
Aero Inventory plc/Aero Inventory (UK) Limited 
30 Lancaster Road, New Barnet  
Hertfordshire, EN4 8AP United Kingdom
Tel  +44 (0)20 8449 9263 
Fax  +44 (0)20 8449 3555
Email info@aero-inventory.com     
Hong Kong
Aero Inventory (Hong Kong) Limited
Units 01-06, 6th Floor, Airport Freight Forwarding Centre
2 Chun Wan Road, Chek Lap Kok, Hong Kong
Tel  +852 3657 2600
Fax  +852 3657 2601
Email enquiries.hk@aero-inventory.com 
 
Australia
Aero Inventory (Australia) Pty Limited
Level 7, 250 Victoria Parade
East Melbourne, Victoria 3002
Tel  +61 3 9445 5700
Fax  +61 3 9445 5798
Email enquiries.aus@aero-inventory.com 
 
United States of America
Aero Inventory (USA) Inc
12257 Florence Avenue
Santa Fe Springs, California 90670
Tel  +1 562-236-5500
Fax  +1 562-236-5501
Email enquiries.usa@aero-inventory.com 
Bahrain
Aero Inventory (Bahrain) S.P .C.
Door 1 & 2, Gate 18
Free Trade Zone – GLS Compound
Bahrain International Airport
Muharraq 
Kingdom of Bahrain
Tel  +973 173 20560
Fax  +973 173 20762          
Email enquiries.bahrain@aero-inventory.com
Japan
Aero Inventory Japan KK 
Utility Center Building 4th Floor
3-5-10 Haneda Airport
Otaku, Tokyo 144-0041 
Japan
Tel  +81-3-5756-7700
Fax  +81-3-5756-0303
Email enquiries.japan@aero-inventory.com
www.aero-inventory.com
Aero Inventory plc  annual report and accounts 2008
Back to contents Previous page Aero Inventory is listed on the Alternative Investment Market 
of the London Stock Exchange with operations in the United 
Kingdom, Australia, Canada, China, Bahrain, Hong Kong, 
Indonesia, Japan, Switzerland and the United States of America.
We are a service provider to companies in the aerospace industry, 
providing a comprehensive procurement and inventory 
management service.
We focus on the hundreds of thousands of consumable and 
expendable parts required in the maintenance of commercial aircraft 
and our e-based systems are complemented by on-site representation 
and 24-hour customer support. We aim to grow the business by 
securing contracts with additional customers who can benefit 
operationally and financially from our services, including airlines and 
aerospace maintenance and repair companies.
Aero Inventory’s ultimate goal is to become the world’s 
leading aircraft consumable parts service provider
 
Aero Inventory
Aero Inventory is proud to be a major sponsor of  
the Vulcan to the Sky Trust for 2008/09. 
The mission of the Trust is 
• To preserve and protect AVRO Vulcan G-VLCN ( XH558), to return  
 her to full working order for the benefit of the public.
• To demonstrate and display the aircraft at public events and to   
 conserve her as a heritage asset in perpetuity.
• To advance the education of the general public, and also specifically  
 engineers and aviators, in the AVRO Vulcan, her provenance;   
 historical and social context; design technologies; operational and  
 maintenance processes and procedures; for the benefit of British  
 heritage, historical and technical knowledge and conservation.
• To assist in the conservation to full working order of other heritage  
 aircraft of the 20th century.
The Trust delivered its aim of demonstrating Vulcan XH558 at a number 
of UK air shows in 2008, attracting much public and commercial 
interest. With this sponsorship, Aero Inventory aims to support the 
Trust’s objectives of honouring the past and inspiring the future. 
Aero Inventory is using its association with the Vulcan to the 
Sky Trust to build global awareness of the Aero Inventory brand. 
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 01 
$93.3m
up 76%
Operating profit
$440m
up 78%
Revenues
$73. 1m
up 60%
Pre-tax profit
102c
up 56%
Fully diluted EPS
  Our Business  Governance  Financials
01 Highlights
02 What we do
04 How we do it
06 Where we do it
08 Where are we going?
10 A track record of success 
12 Chairman’s statement
14 Chief Executive’s statement
20 Directors’ biographies
22 Directors’ report
25 Corporate governance
26 Remuneration report
30  Statement of directors’ 
responsibilities
31 Independent auditors’ report
32 Consolidated income statement
33  Consolidated statement of 
recognised income and expense
34 Consolidated balance sheet
35 Consolidated cash flow statement
36  Notes to the consolidated financial 
statements
59 Notice of Annual General Meeting
65 Shareholder information
66  Five year summary
66 Company information
67 Form of proxy
PRE-TAX PROFITS
$’000
45.6
18.2
73.1
13.0
3.0
04 05 06 07 08
REVENUES
$’000
247.0
117.1
440.0
79.5
38.6
04 05 06 07 08
Highlights
Back to contents Next page Previous page Back to contents Next page Previous page 02 Aero Inventory plc 2008 
Our Strategy Our Markets Our Business
Aero Inventory provides inventory 
management and procurement 
services for commercial aircraft 
maintenance
We enter into exclusive long-term 
supply contracts with airlines and  
with aircraft maintenance repair and 
overhaul businesses. The contracts 
specify a defined list of part numbers 
covering the entire range of 
consumable and expendable parts 
used by each customer in the 
maintenance of commercial aircraft, 
components and engines.
At the beginning of a contract  
Aero Inventory  typically buys  
the customer’s stocks of parts
Frequently used ‘planned’ stocks 
continue to be stored at our customers’ 
locations as this is most convenient  
to them. All parts supplied are 
delivered with the relevant quality 
paperwork to meet the standards set 
by both the relevant airworthiness 
authorities and the customer.
Right parts, right time, 
right service
During the term of the contract Aero 
Inventory is responsible for ensuring 
that the right parts are available  
at the right time and commits to 
service levels, typically an ‘off-the-
shelf’ availability percentage for  
key (planned) parts in the order of  
95 per cent.
Our growth has been achieved 
through winning additional 
contracts, all of which are  
similar in nature 
As further contracts are won, 
increasing demands for parts from 
customers all draw off one enlarged 
pool of stock which allows us to  
enjoy more efficient inventory 
management than is available to any 
single customer, particularly given  
the irregular usage of some slower 
moving parts which is typical in  
aircraft maintenance.
Benefits to our customers 
include:
•	 	Payment	 for	 parts	 only	 as	 they	 are	 consumed
•	 	Fewer	 stock	 outs	 or	 shortages,	 resulting	 in	 improved	 efficiency	 and	 shorter	 turn	 round	 times
•	 	Elimination	 of	 the	 financial	 cost	 of	 holding	 inventory
•	 	Cash	 injection	 from	 Aero	 Inventory	 stock	 purchase
•	 	A	 reduction	 in	 direct	 costs	 in	 those	 areas	 encompassed	 by	 our	 service
•	 Better 	 parts	 usage	 information
What we do
Parts delivered round 
the clock every day.
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 03 
Our Performance Financials Governance
Right part, right time, 
right service.
Back to contents Next page Previous page Back to contents Next page Previous page 04 Aero Inventory plc 2008 
Our Strategy Our Markets
AI	stock	from	customer	purchases
Other	stockists	of	new	parts
Original	Equipment	Manufacturers 	 (OEMs)	and	Distributors
Our Business
How we do it
Our business model is essentially 
straightforward and seeks to 
ensure that the right parts are 
available to our customers in the 
right quantity and at the right time. 
A complex supply chain operates 
to ensure the smooth running 
of this process.
Inventory management 
and demand planning 
Using the ever increasing history of 
parts usage both in our own operations 
and from customer histories together 
with data on parts availability and lead 
times, demand planning models are 
used to generate the stock profiles. 
Criteria agreed with each customer 
determine if a part is ‘planned’ to be 
held in stock or will be supplied only 
when a specific need arises.
Procurement
Aero Inventory works with key suppliers 
to build long-term relationships focusing 
on providing the supply needed by our 
customers. An increasing number  
of long-term partnership agreements 
are in place with major OEMs and  
parts vendors.
Purchasing
If not already available in Aero Inventory’s 
stock, orders to obtain required parts, 
whether for planned part replenishment 
or to meet shortages, are sent through 
to suppliers using Aero Inventory’s 
proprietary system, Parts Central, and 
industry standard EDI links. Orders are 
expedited as needed to ensure that 
service targets are achieved.  
Logistics
Partnership arrangements with expert 
global third party logistics providers 
take parts from the source to the end 
customer location. Consolidation of 
shipments optimises the flow of parts.
Pricing
Transparent pricing is vital to our 
customers. Our pricing teams maintain 
an ever increasing database of prices 
and histories so that accurate timely 
information on the cost of parts 
used can be provided to customers.
Accounts payables management
Aero Inventory takes away from  
the customer the need to manage 
the large number of suppliers and 
transactions involved in having the 
right parts in the right place at the 
right time.
Over 1000 suppliers
Aero Inventory 
Demand	 planning
Procurement
Purchasing
Logistics
Pricing
Accounts	 payable
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 05 
Our Performance Financials
Customer picks part
Airlines	–	MROs
Aero Inventory
Supplies	 parts	 needed	 by	 customers	 in	 	 line	 with	 contracted	 service	 levels
Focus on 
maintenance activities
Governance
Aero Inventory’s stocks support 
customers worldwide
> Customers pick   
 over 2 million parts  
 every year
> 50 million items 
 in stock
> Over 6 million parts  
 on a Boeing 747-400
Aero Inventory supplies/replenishes
stock & invoices for parts used
Back to contents Next page Previous page Back to contents Next page Previous page 06 Aero Inventory plc 2008 
Our Strategy Our Business
Distribution of personnel
1. 13% Australia
2. 28% America
3. 21% Asia
4. 38% UK and rest of Europe
Our Markets
1
2
3
4
The aerospace market represents 
an attractive market opportunity for 
an IT-intensive service provider 
specialising in aerospace parts.
It has a requirement for a large number 
of distinct parts. The supplier base of 
such parts to the aerospace industry is 
highly fragmented, resulting in there 
being many different sources of supply.
Aerospace manufacturers, commercial 
airlines, and aircraft maintenance and 
repair organisations have in the past 
traditionally largely handled procurement 
and inventory management internally.
The trend toward the outsourcing of 
aircraft parts procurement and inventory 
management is strengthening and is 
creating significant new contract 
opportunities.
The market
Aero Inventory is listed on the 
Alternative Investment Market of 
the London Stock Exchange with 
operations in the United Kingdom, 
Australia, Canada, China, Bahrain, 
Hong Kong, Indonesia, Japan, 
Switzerland and the United States 
of America.
We have expanded our global 
presence significantly. Strong central 
direction from the UK head office is 
underpinned by highly capable 
regional offices which deal with 
customers and suppliers around the 
world in their own regions and time 
zones to ensure optimum supply and 
customer service. Over 50 per cent  
of our staff are now based outside  
the UK. 
 
Our presence
Where we do it
All Nippon Airways Boeing  
747-400 aircraft are supported 
by Aero Inventory
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 07 
Our Performance Financials Governance
Delivering parts worldwide
North America
	 Los 	 Angeles	 Operations	 Centre  
 Procurement/Purchasing/Logistics/Quality
	 Miami 	 Operations	 Satellite	 	 Logistics
	 Montréal 	 Operations	 Centre	 	 	 Procurement/Purchasing/Logistics/Quality/	 	 On-site 	 customer	 support
	 Toronto/Winnipeg/Vancouver 	 	 On-site	 customer	 support
	 San 	 Salvador,	 El	 Salvador	 	 	 On-site	 customer	 support
	 Operational	 Centres	 and	 Customer	 located	 offices
	 Operational	 Centres
	 Customer	 located	 offices
Our Regions
Europe & Middle East
	 New 	 Barnet,	 London	 	 Head	 office	 functions/	 	 Commercial/Pricing/Procurement/ 	 	 Purchasing/Logistics 	 /Quality
	 Dublin 	 (Ireland),	 Stansted	 (UK),	 	 Zurich 	 (Switzerland),	 Bahrain	 	 On-site 	 customer	 support
Asia Pacific
	 Hong 	 Kong,	 Melbourne,	 Tokyo	 	 Operational	 Centres/Procurement/	 	 Purchasing/Logistics/Quality
	 Hong 	 Kong,	 Xiamen,	 Jinan	 (China),	 	 Melbourne, 	 Sydney,	 Brisbane	 (Australia),	 	 Jakarta 	 (Indonesia)	 	 On-site	 customer	 support
Back to contents Next page Previous page Back to contents Next page Previous page 08 Aero Inventory plc 2008 
Our Business Our Markets Our Strategy
REVENUES
$’000
247.0
117.1
440.0
79.5
38.6
04 05 06 07 08
will benefit operationally and financially 
from our services and who are 
prepared for Aero Inventory to achieve 
its financial returns, subject to meeting 
cost and performance targets.
As the business grows and the 
commonality of parts between 
contracts increases, Aero Inventory 
believes there will be economies of 
scale in purchasing and in the trading 
of our inventories. We also see 
increasing opportunities to pool 
inventory across our different customer 
contracts, where appropriate. Aero 
Inventory also believes there will be 
opportunities to increase efficiency 
through improved logistics.
Our strategy
Our strategy is to grow the business 
rapidly and profitably by securing 
further long-term, sole-supplier 
contracts. 
With major long-term contracts in place 
with a number of the world’s leading 
airlines and maintenance and repair 
organisations (MROs) and holding an 
extensive inventory of current aircraft 
parts, Aero Inventory believes it is well 
placed to capitalise on a large, emerging 
outsourcing market, as aerospace 
businesses seek to gain cost and 
efficiency advantages through 
outsourcing parts procurement  
and inventory management. 
Aero Inventory believes that there are 
opportunities to add incremental 
business related to our existing 
customers and to secure further 
contracts among MROs, airlines, aircraft 
manufacturers and government 
agencies. We seek customers who  
Where are we going?
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 09 
Our Performance Financials Governance
Grow the business rapidly and profitably by 
securing further long-term, sole-supplier 
contracts. 
Capitalise on the outsourcing market, as 
aerospace businesses seek to gain 
advantages through outsourcing parts 
procurement and inventory management. 
Seek customers who will benefit operationally 
and financially from our services.
Add incremental business related to our 
existing customers and to secure further 
contracts among MROs, airlines, aircraft 
manufacturers and government agencies. 
Generate further economies of scale in 
purchasing and in the trading of our 
inventories. 
Increase efficiency through improved 
logistics.
Aero Inventory supports Qantas 
at four locations in Australia
Back to contents Next page Previous page Back to contents Next page Previous page 10 Aero Inventory plc 2008 
Our Business Our Markets Our Strategy
Aero Inventory’s recent history 
started in 1994 when an existing 
distribution business was acquired, 
since when the management  
team has transformed it into an 
aerospace parts service provider, 
focusing on consumable and 
expendable (C&E) parts. The 
Company has generated strong 
growth both by extending business 
with existing customers and by 
winning new contracts.
In May 2000 the Company’s shares 
were listed on the Alternative Investment 
Market (“AIM”), allowing the Company 
to raise new capital for expansion. 
Aero Inventory has subsequently 
grown rapidly and profitably. At the 
time of its admission to trading on AIM 
in May 2000, Aero Inventory had two 
UK customers, CF Taylor and Britax. 
Aero Inventory’s first major overseas 
customer, in 2000, was the Hong 
Kong Aircraft Engineering Company 
(HAECO), a major MRO in Hong Kong. 
This covered the customer’s 
Component Workshop activities at 
Tseung Kwan O in Hong Kong.
In 2004, a second large-scale sole-
supplier contract was signed covering 
HAECO’s line and base maintenance 
activities at Chep Lap Kok airport  
in Hong Kong. In 2006, these two 
contracts were rolled into a new 
HAECO group ‘umbrella’ contract. 
Further activities have been added to 
the agreement: Aero Inventory is now 
the parts supplier to HAECO group 
companies, Taikoo (Xiamen) Aircraft 
Engineering Co. Limited (TAECO)  
at Xiamen in China and Taikoo 
(Shandong) Aircraft Engineering Co. 
Limited (STAECO) at Jinan in China. 
Most recently, Aero Inventory has 
started to supply parts to HAECO’s 
new operation in Bahrain in the United 
Arab Emirates.
In October 2003, Aero Inventory 
signed a procurement and inventory 
management contract with SR 
Technics Switzerland, a leading 
independent MRO. Two essentially 
identical service contracts were then 
signed in 2004 with SR Technics 
group companies in the UK and 
Ireland.
A track record of success
Customer service – a key success factor 
Reliable parts availability is crucial to aircraft 
maintenance activities
Aero Inventory agrees service level targets specific to each 
contract customer based on the availability of key parts. These 
are measured and reported monthly. To ensure that focus  
is maintained, 50 per cent of Aero Inventory’s staff bonus is 
earned by the achievement of service delivery targets. Our 
internal targets were once again achieved in 2007/08.
The measures used are developed for each customer and 
were not always in use before Aero Inventory’s appointment 
and the full operational implementation of Aero Inventory’s 
service. From the data which is available, Aero Inventory 
believes that the service provided to all our customers gives 
better parts availability than they had before we implemented 
the Aero Inventory solution. 
Following a comprehensive competitive 
supplier selection process, in 2006, 
Aero Inventory was awarded a 10-year 
contract by Qantas Airways Limited  
for the supply of procurement, 
purchasing, inventory management 
and logistics services for Qantas’ 
Expendables and Recoverable spares.
In November 2007, a further large 
scale contract was awarded to Aero 
Inventory by Air Canada Technical 
Services (now Aveos Fleet 
Performance Inc.) covering all parts  
for this North American MRO and its 
operations in Canada and El Salvador. 
This was followed in March 2008 by  
a breakthrough into the Japanese 
market when All Nippon Airways  
of Japan, ranked as one of the top  
ten airlines in the world, selected  
Aero Inventory to supply parts for  
a significant part of its fleet.
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 11 
Governance Our Performance Financials
HISTORIC GROWTH
All Nippon Airways 2008
Aveos Fleet Performance Inc 
(Formerly Air Canada Technical Services) 2007
Qantas Airways Limited 2006
HAECO Group contract expansion 2006
SR Technics UK and Ireland 2004
SR Technics Switzerland 2003
HAECO contract 2000
Revenues increased by 78% 
to $440m in 2008. The five 
year compound growth rate 
is 85%.
Back to contents Next page Previous page Back to contents Next page Previous page 12 Aero Inventory plc 2008 
Our Business Our Markets Our Strategy
Nigel McCorkell
Chairman
Strong growth
I am pleased to report another year of 
substantial growth from Aero Inventory, 
with revenue up 78 per cent, pre-tax 
profits up 60 per cent and diluted EPS 
up 56 per cent. We are proposing an 
increased final dividend of 12 pence 
per share to give total dividends for  
the year of 18 pence. Aero Inventory 
has now reinforced its position as a 
leading aircraft consumable parts 
service provider and is better placed 
than before to continue its expansion.
Asset based borrowing facility
As well as the strong financial results,  
I would like to highlight the $500 million 
asset-based long-term financing facility 
that we put in place during the year. 
This innovative financing reflects the 
quality of our stocks and debtors and 
the quality of the cash flows from our 
long-term contracts. The interest rate 
on this facility is US Dollar LIBOR +3 per 
cent. The facility has been designed to 
be expandable as Aero Inventory grows.
The future
Aero Inventory’s strategy is to grow  
the business rapidly and profitably  
by securing further long-term sole-
supplier contracts with airlines or 
Maintenance, Repair and Overhaul 
companies (MROs) to supply a wide 
range of consumable parts used in 
commercial aircraft maintenance. The 
market is very large and continues to 
grow despite the recent pressures on 
the airline industry and this presents  
a considerable opportunity for Aero 
Inventory. During the last year there 
appears to have been a tipping point 
in airlines’ attitude to the outsourcing 
of consumable parts. Following many 
approaches from major airlines, we  
are currently discussing a number of 
potential multi-year contracts with an 
aggregate value of several billion US 
Dollars. While such a level of new 
business will involve challenges, we 
think it is essential that Aero Inventory 
takes this unique opportunity to secure 
a dominant position in its marketplace.
Further rapid expansion of the 
business should bring considerable 
benefits to shareholders. This is 
because new contracts are not 
expected to involve a proportional 
increase in operating costs or stocks, 
meaning that the profitability on 
incremental business should be high. 
There are increasing opportunities to 
reduce the total amount of stocks that 
need to be held by the business and 
this provides considerable potential  
to improve both stock turns and  
the return on capital employed.  
The unsolicited approach received  
by the Group in June 2008 by  
a potential offerer is, I believe,  
a reflection of the increasing 
attractiveness of the business.
Chairman’s statement
During the year there appears to have 
been a tipping point in airlines’ attitude 
to the outsourcing of consumable parts.
We	think	it	essential	that	Aero	Inventory	 take	this	unique	opportunity	to	secure	a	 dominant	position	in	its	market	place.
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 13 
Governance Our Performance Financials
Long Term Incentive Plan
The Aero Inventory Long-Term Incentive 
Plan was approved by shareholders 
and adopted by the Group in 
December 2007. It provides an 
important incentive to management to 
maximise the growth of the business 
and provides substantial rewards to 
management if the Group’s share price 
reaches 1500 pence per share at the 
end of three years.
Appointment of joint broker
I am pleased to announce that Numis 
Securities Limited has been appointed 
as joint broker to the Group. We look 
forward to working with both our 
brokers to maximise shareholder value.
Thanks to staff
Our success is driven by our employees. 
They play the key role in helping us  
meet client service expectations and in 
supporting our growth. The Board would 
like to welcome those who have joined 
the Group during the year and to thank 
everyone across the Group for all their 
hard work during the year.
Nigel	 McCorkell 
Chairman 
22 September 2008
+60%
Pre-tax profits
Air Canada is a major customer of Aveos Fleet 
Performance Inc. Now an independent 
maintenance and repair organisation, it was 
formerly Air Canada Technical Services
+56%
Diluted EPS
Back to contents Next page Previous page Back to contents Next page Previous page 14 Aero Inventory plc 2008 
Our Business Our Markets Our Strategy
Introduction
The 2007/08 financial year showed 
significant and exciting growth for  
Aero Inventory. Two key new contracts 
were signed and we continued to 
make progress in our operational 
performance to support the service 
levels to which we have committed. 
The year has not only benefited from  
a full year’s trading from our contract 
with Qantas but also includes 
significant contributions from the new 
contracts with ACTS and ANA (All 
Nippon Airways).
Review of results
Turnover for the year ended 30 June 
2008 increased by 78 per cent to 
$440 million (2007: $247 million). The 
largest part of the increase resulted 
from our new contract with ACTS, 
which generated higher revenues than 
originally anticipated, but the figures 
also benefited from a full year’s 
revenue contribution from our contract 
with Qantas. There was some 
expansion of our business with the 
HAECO group, particularly in China,  
as well as some expansion in revenues 
from SR Technics. The new contract 
with ANA also contributed to revenues 
in the latter months of the year. 
As a company listed on AIM we are 
now obliged to present our results 
under International Financial Reporting 
Standards (IFRSs). The two principal 
adjustments made are to show our 
Rupert Lewin
Chief Executive
capitalised IT development costs as an 
intangible asset rather than a tangible 
one and to retrospectively change our 
functional and presentational currency 
to US Dollars at 1 July 2006, resulting 
in the value of stocks being stated at 
the US Dollar values at which they  
were purchased. All the figures in this 
statement are shown in US Dollars 
including comparative figures from last 
year and almost all our trading and our 
debt is now denominated in US Dollars. 
The change in reporting currency is a 
logical step for a business that trades 
almost entirely in US Dollars and gives 
a clearer picture of the underlying 
financial performance. 
Operating profit rose by 76 per cent to 
$93.3 million (2007: $52.9 million) with 
significant contributions arising from the 
new contracts (ACTS and ANA) and 
continuing contributions from Qantas, 
SR Technics and HAECO. The operating 
margin remained at 21 per cent.
Net interest payable amounted to 
$20.2 million (2007: $7.3 million) 
reflecting a higher level of borrowings 
following the commencement of the 
contract with ACTS. The pre-tax profit 
was $73.1 million (2007: $45.6 million).
After a tax charge of $21.5 million 
(2007: $14.5 million) – an effective rate 
of 29.4 per cent (2007: 31.7 per cent) 
– profit after tax was $51.6 million 
(2007: $31.1 million) and basic 
Chief Executive’s statement
The full operational go-live of the Qantas 
and ACTS contracts during the course 
of the year trebled the operational 
transactions processed by Aero Inventory.
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 15 
Governance Our Performance Financials
earnings per share were 108.7 cents 
(2007: 65.9 cents). Diluted earnings 
per share were 102.0 cents (2007: 
65.3 cents).
Net debt at the year end was $391.0 
million compared to $110.6 million  
at 30 June 2007. Although we have 
strong positive operational cash flow 
from our established customers, we 
invested heavily in the year to support 
our contracts with ACTS and Qantas. 
In particular we acquired $95 million of 
stocks and intellectual property from 
ACTS in November 2007 and then 
purchased further parts to support the 
higher than expected levels of trading 
at ACTS. The intellectual property 
consisted principally of the database 
of parts usage in historic maintenance 
activity which has a considerable value 
to our business. We will be amortising 
the cost of the intellectual property 
purchase over the initial ten year term 
of the ACTS contract.
Year-end shareholders’ funds 
amounted to $294.2 million (2007: 
$253.8 million). This takes into account 
the retained profits for the year less 
dividends paid during the year.
The year-end consolidated balance 
sheet once again shows significantly 
increased stocks at $690.1 million 
(2007: $390.9 million). The principal 
increase in stock levels reflects the 
inventory purchase connected with our 
contract with ACTS. In addition to the 
initial stock purchase referred to above 
we also made further purchases of 
stock during the period to enable us to 
achieve the service levels to which we 
had contractually committed to, 
particularly for the contracts with ACTS 
and Qantas. High levels of stock have to 
date been necessary to provide a high 
level of performance for our customers 
and, as our business expands further, 
we are increasingly well placed to 
service new customers from our existing 
stocks. As our contracts mature and as 
the initial stocking requirements are met 
there is a significant reduction in monthly 
stock purchases; in September 2008 
stock purchases are expected to be 
some 40 per cent below the level seen 
in March 2008. 
Growing stock efficiencies 
The commonality of parts between our 
growing customer base is increasing. 
On average 73 per cent of our active 
parts on hand at the year end are  
used to service two contracts and this 
presents considerable opportunities  
to us to improve the utilisation of our 
stocks. The increasing commonality  
of our stocks coupled with improved 
purchasing and secondary market 
trading is beginning to improve our 
stock turn. Despite the stock increases 
required to support our newer contracts, 
annualising the last quarter’s revenues, 
Group revenues are running around  
80 per cent of period end stocks,  
Back to contents Next page Previous page Back to contents Next page Previous page 16 Aero Inventory plc 2008 
Our Business Our Markets Our Strategy
the same level reported at the end of 
our half year.
Transfers of stock between sites are 
also increasing as we seek to locate 
stocks where they are most likely to  
be consumed by customers. Some 
$18 million of stocks were transferred 
in the second half of our financial  
year compared to only $9 million 
transferred in the first half. We have 
also increased the amount of stock 
sold to non-contract customers. 
Enlarged bank facilities
In February 2008 we signed a new 
syndicated asset based lending facility.  
The new five year syndicated facility 
was led by Lloyds TSB Commercial 
Finance and is an asset based lending 
facility secured on Aero Inventory’s 
stocks and trade debtors in the UK, 
Switzerland, Ireland, Canada, the 
United States, Hong Kong, Australia 
and Japan. As was anticipated the 
facility was further extended in June 
2008 to $500 million. The asset based 
lending facility is well suited to the 
business given its potential 
for expansion.
The Group’s bank facilities have 
therefore risen from £85 million 
(equivalent to $170 million) to $500 
million during the year and this 
increase has given the business  
the capability to take on significant 
amounts of new business, in particular 
the contracts with ACTS and ANA. 
Dividend
Reflecting our confidence in the future, 
the Board is recommending the 
payment of a final dividend of 12 
pence per share (equivalent to 23.7 
cents per share at the period end 
exchange rate). Taken with the interim 
dividend of 6.0 pence per share 
(equivalent to 11.3 cents per share) 
paid in May 2008, the total dividends 
for the year amount to 18 pence 
(equivalent to 35.0 cents at the period 
end exchange rate). The final dividend 
will be paid on 11 December 2008  
to shareholders on the register on  
14 November 2008.
Operational review
Aero Inventory’s business is essentially  
a straightforward one and just seeks  
to ensure that the right parts are 
available to customers at the right 
time. However the number of parts 
required, the number of sites involved 
and the irregularity of the usage of 
parts used in maintenance as well as 
all the challenges of operating a global 
supply chain provide great complexity. 
We now hold in stock over 50 million 
individual parts with over 400,000  
part numbers held in over 40 different 
locations. The number of part picks  
in a typical month now approaches 
200,000.  
Given these complexities in our 
business and our rapid growth we 
constantly need to continue to develop 
and improve the operational procedures 
Chief Executive’s statement continued
We now hold in stock over 50 million 
individual parts with over 400,000 part 
numbers held in over 40 different locations. 
The number of part picks in a typical 
month now approaches 200,000.
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 17 
Governance Our Performance Financials
within the business. We continued to 
develop our operational structure during 
the year in order to provide a robust 
framework to support both current 
operations and future business and we 
have expanded our global presence 
significantly. Strong central direction 
from the UK head office is 
underpinned by highly capable 
regional offices which deal with 
customers and suppliers around the 
world in their own regions and time 
zones. This structure enables 
customer service and responsiveness 
to be maximised. It also allows strong 
relationships to be developed with 
suppliers in different regions and 
provides access to all relevant sources 
of parts while bringing to bear Aero 
Inventory’s position as an increasingly 
important player in the aircraft parts 
supply chain. Good progress was 
made during the year in strengthening 
our relationships with a number of  
key suppliers.
It is worth noting that the full 
operational go-live of the Qantas and 
ACTS contracts during the course  
of the year trebled the operational 
transactions processed by Aero 
Inventory compared to the previous 
activity level.
We have continued to develop Aero 
Inventory’s proprietary system, Parts 
Central, to support the growing 
business. We also invested in the 
infrastructure of our IT resource to 
support the ever more widely spread 
locations and to provide greater 
capacity and resilience.
In a year which saw us complete our 
work to bring the Qantas contract  
into full operation, we also remained 
strongly focused on our existing 
customers and it is very pleasing to 
report that we achieved high service 
levels with all our major customers, in 
all cases achieving better performance 
levels than were previously achieved 
by customers’ in-house operations.
In more detail, the key operational 
developments during the year were 
as follows:
Canada – Our largest contract, with 
ACTS (shortly to be renamed Aveos 
Fleet Performance), was signed in 
November 2007 and we are well on the 
way to full contract implementation. We 
have opened an office in Canada and 
have recruited a team to support the 
four ACTS locations across Canada  
and the ACTS subsidiary, Aeroman,  
in El Salvador.
Japan – Following the signing of our 
contract with ANA in March 2008 we 
have opened an office in Japan and are 
currently involved in recruitment and 
detailed contract implementation.
Australia – Our office in Melbourne has 
some 50 locally recruited staff to support 
the supply of parts to the four Qantas 
+78%
Revenues up to $440m
The HAECO Group  
carries out passenger aircraft  
to freighter conversions as part 
of its range of services
+76%
Operating profit up to $93.3m
Back to contents Next page Previous page Back to contents Next page Previous page 18 Aero Inventory plc 2008 
Our Business Our Markets Our Strategy
maintenance and repair locations in 
Australia. The Australian team also 
deals with the local Australian supply 
base. Contract implementation was 
successfully completed in July 2007. 
Many of the developments in operational 
procedures and IT systems developed 
for Qantas are now being used to 
improve our service at other sites.
Europe – Our major contracts with  
SR Technics in Zurich, Stansted and 
Dublin all performed satisfactorily. This 
business is operated from our office in 
New Barnet in the UK, supported by 
local on-site account support staff.
Hong Kong and China – Business in 
Hong Kong and China has continued 
to grow, largely driven by increasing 
business with HAECO’s subsidiaries in 
China, TAECO in Xiamen and STAECO 
in Jinan. We have enlarged our local 
support team in Hong Kong and we 
also have a dedicated warehouse and 
distribution facility. As well as providing 
the interface to customers in the region, 
the Hong Kong team has responsibility 
for procurement and purchasing from 
our Asia Pacific based suppliers.
Middle East – We continue to  
support ADAT in Abu Dhabi and have 
opened a small facility in Bahrain to 
support HAECO.
Indonesia – Business in Jakarta 
continues to be satisfactory with good 
potential for further expansion. 
United States – The team based at 
our facility in Los Angeles has 
expanded significantly during the  
year. The number of buyers there in 
particular has increased to service the 
US based supplier base. The facility 
also acts as a logistics consolidation 
point for the considerable volumes of 
material which we source in the US for 
supply to our customers worldwide.  
In addition we have positioned some 
inventories not immediately required 
for current customer contracts in the 
facility and we market such materials 
to customers in the US.
Staff
During the period, Aero Inventory 
increased headcount significantly  
from 268 at June 2007 to 371 at  
June 2008. Over 50 per cent of our 
staff are now based outside the UK.  
This is a clear demonstration of the 
globalisation of Aero Inventory’s 
business. 
There has been a major recruitment 
exercise in Canada to support the  
new contract with ACTS. An 
experienced team has been assembled 
with backgrounds in operational 
management, procurement, purchasing, 
inventory and demand planning. There 
has also been considerable expansion 
at our Los Angeles facility where we 
have increased our number of buyers 
in particular, so that they are based in 
the same time zone as the suppliers 
they buy from. More recently we have 
also been recruiting for our new 
Chief Executive’s statement continued
Aero Inventory has grown its revenues 
and profits considerably in the last 
financial year. Aero Inventory is  
now an established industry player  
and in an excellent position to win  
further contracts.
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 19 
Governance Our Performance Financials
contract with ANA in Japan. At a 
global level, we substantially increased 
our training efforts to ensure that all 
staff are equipped with the skills to 
maximise their effectiveness and 
contribution.
Current trading and prospects
Aero Inventory has grown its revenues 
and profits considerably in the last 
financial year and has strengthened  
its position within the industry. Aero 
Inventory is now an established 
industry player and in an excellent 
position to win further contracts. The 
business is also now realising some  
of the benefits of its increased size  
and is beginning to use its stock more 
efficiently which will lead to improving 
stock turn and cash flow. Although 
there is much more that needs to be 
done to achieve optimum stock turn 
we are now accelerating our plans for 
improvements in the current year.
Airlines are now being forced to react 
to the impact of both increased fuel 
costs and recessionary pressures and 
this has resulted in more enquiries for 
new business than ever before. This 
places Aero Inventory in an excellent 
position to win new contracts in 
addition to working on the successful 
implementation of our contracts with 
ACTS and ANA.
Rupert	 Lewin	 Chief Executive 
22 September 2008
Aero Inventory supports Aveos Fleet Performance Inc., 
with parts for its engine, airframe and component  
maintenance solutions
Back to contents Next page Previous page Back to contents Next page Previous page 20 Aero Inventory plc 2008 
Our Business Our Markets Our Strategy
Paul Docker (born 22 July 1965)
Chief Operating Officer
Paul Docker joined Aero Inventory (UK) 
Limited as Procurement Director in November 
2003 and held the position of Operations 
Director from July 2004 until June 2007. 
From 1981 to 1996, Mr Docker worked for 
Dunlop Aerospace and was involved in 
supplies management and business process 
re-engineering. In 1996, he moved to Smiths 
Group where he held successive senior 
purchasing positions within Smiths 
Aerospace. In 1999 he became Materials 
Executive for Portex Limited, a large  
multi-site operation within Smiths Group 
Medical Division.
Martin Dodge (born 17 February 1962)
Commercial Director
Martin Dodge joined the Company at the 
same time as Rupert Lewin in 1994. He  
has been closely involved in all areas of  
the business. He was Commercial Director 
between December 1998 and August 2002 
when he became Asia Pacific Director to 
reflect his position as Managing Director of 
Aero Inventory (Hong Kong) Limited. He 
joined Courage Limited (part of the Imperial 
Group plc) in 1985 where he progressed to 
the position of Promotions and Marketing 
Manager. From 1988 to 1994 he worked  
as Business Development Manager at  
SI Industries Limited.
Directors’ biographies
Nigel McCorkell (born 9 January 1947)
Chairman
Nigel McCorkell joined the Company as a 
Non-executive Director in April 2000. A 
Chartered Accountant, he was Finance 
Director of Flight Refuelling plc (Cobham plc) 
from 1981 to 1984. After purchasing an 
equity interest in Meggitt plc in 1984, he  
was Finance Director, becoming Managing 
Director between 1991 and 1994. He was 
Deputy Chairman of Meggitt between 1994 
and 1996. In 1996 he became Chairman of 
Cork Industries Limited until the company 
was acquired in 1999. He is a Non-executive 
Director of FFastFill plc.
Rupert Lewin (born 19 October 1955)
Chief Executive
Rupert Lewin has had overall responsibility  
for the direction and management of the 
Company since 1994. Between 1977 and 
1991, he worked as a research analyst for a 
number of City firms, including Scott, Goff, 
Hancock & Co. (1977-80), Moy, Vandervell & 
Co. (1980-82), Sheppards and Chase (1982) 
and Robert Fleming (1982-91). He was a 
director of Robert Fleming Securities Limited 
between 1987 and 1991 and, for part of this 
time, Head of Corporate Broking. Between 
1992 and 1994, he was Chief Executive of  
SI Industries Limited.
Hugh Bevan (born 27 September 1961)
Finance Director
Hugh Bevan, a Chartered Accountant, joined 
the Company in April 2002. Between 1987 
and 2001 he worked for Robert Fleming and 
Jardine Fleming, subsequently acquired by 
JP Morgan Chase. During this time, he 
worked mainly in the Hong Kong and  
London offices on fundraising and advisory 
transactions. In 1997 he became Chief 
Operating Officer of Jardine Fleming’s Asian 
Corporate Finance business, and in 1999 
returned from Hong Kong to London as 
Head of Equity Capital Markets Execution.  
He is also a Non-executive Director of 
Foamasters International Limited.
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 21 
Governance Our Performance Financials
Roger Davis (born 4 June 1956)
Non-executive Director
Roger Davis joined the Company as a 
Non-executive Director on 8 January 2007.  
Mr Davis worked for Barclays plc from 1997 
until December 2005. From January 2004,  
he was a director of Barclays plc and held  
the position of Chief Executive, UK Banking.  
Mr Davis had been a member of the Barclays 
Group Executive Committee since February 
2003 and his previous roles for the Barclays 
Group included Chief Executive of Business 
Banking; Chairman and Chief Executive of 
Barclays Capital, Asia Pacific. Before joining 
Barclays, he spent 12 years in the British 
Army and ten years in investment banking at 
Robert Fleming. He is Chairman of Life Trust 
Holdings Plc and of Gem Diamonds Limited 
and is also a Non-executive Director of 
Experian Group Limited.
Laurence Heyworth (born 19 March 1955)
Non-executive Director
Laurence Heyworth re-joined the Company 
as a Non-executive Director on 7 September 
2007. He was Chairman of the Company  
at the time of its flotation in 2000, before 
becoming Executive Deputy Chairman from 
2001 to 2004 during which time he helped 
structure the business and played a key  
role in recruiting a number of the current 
management team in preparation for a  
period of substantial growth. He ceased  
to be an executive director in 2004 in order  
to establish two new businesses, in the fields 
of media and insurance. Between 1980  
and 2000 Mr Heyworth worked for Robert 
Fleming (the investment bank) in various roles 
including Head of European Capital Markets.
Frank Turner (born 7 June 1943)
Non-executive Director
Frank Turner joined the Company as a Non-
executive Director in May 2000. He was 
appointed Non-executive Deputy Chairman  
in June 2000 and became Non-executive 
Chairman in July 2001 until stepping down 
on 1 January 2005. A fellow of the Royal 
Academy of Engineering, he spent 33 years 
at Rolls-Royce, becoming a main board 
director in 1988. He was Managing Director 
of Lucas Aerospace Limited as well as a 
director of Lucas Industries plc from 1992  
to 1995. He was Chief Executive of British 
Midland Aviation Services Limited from 1996 
to 1999 as well as a main board director of 
British Midland plc from 1997 to 1999. He is 
currently Chairman of Symmetry Medical Inc., 
Oxford Aviation Academy and Potenza Group 
Limited and an adviser on aerospace to Star 
Capital Partners, and 3i. A former Council 
Member of the Society of British Aerospace 
Companies and the Royal Aeronautical 
Society, he is currently President of the 
International Federation of Airworthiness.
Collin Trupp (born 20 November 1971)
Business Development Director
Collin Trupp joined Aero Inventory as 
Software Development Manager in 
December 2002 and became Information 
Systems Director of Aero Inventory (UK) 
Limited in October 2003 and then Information 
Director of Aero Inventory plc in April 2005,  
in which role he played a key part in the 
conception and development of Aero 
Inventory’s Parts Central corporate business 
system. He relocated to Australia in early 
2006 and took up the position of Australasia 
Director, a position he held until June 2007.  
A Canadian citizen, he had previously worked 
in IT and systems roles at Oz New Media Inc., 
Imaging Solutions Limited and Flint Energy 
in Canada.
Martin Webster (born 1 July 1957)
Resources Director
Martin Webster joined the Company as 
Personnel Director & Company Secretary  
of Aero Inventory (UK) Limited and was 
Company Secretary of Aero Inventory plc 
since June 2004 before being appointed as 
Resources Director on 8 January 2007.  
Mr Webster is responsible for Human 
Resources within Aero Inventory and for a 
range of other areas including training and 
development, legal matters, insurance and 
risk management. He also acts as Company 
Secretary. Prior to joining the Company,  
Mr Webster had been Director of Business 
Services and Group Company Secretary  
of the Dexion Group where he had worked 
since 1984.
Back to contents Next page Previous page Back to contents Next page Previous page 22 Aero Inventory plc 2008 
Our Strategy Our Business Our Markets
The directors present their annual report on the affairs of Aero 
Inventory plc (the ‘Company’) and its subsidiaries (the ‘Group’), 
together with the accounts and auditors’ report, for the year ended 
30 June 2008. 
Results and dividends
The profit for the year after taxation amounted to $51.6 million  
(2007: $31.1 million). The directors recommend the payment of a  
final dividend of 12 pence per share (2007: 10.5 pence), payable on 
11 December 2008 to shareholders on the register on 14 November 
2008, which will be reflected in the 2009 accounts, making a total for 
the year of 18 pence per share, equivalent to 35.0 cents per share 
(2007: 15 pence, equivalent to 30.2 cents).
Principal activities
The principal activity of the Company is that of a holding company to 
its subsidiary undertakings. Aero Inventory (UK) Limited is primarily 
engaged in procurement and inventory management for the 
aerospace industry. Aero Inventory (Hong Kong) Limited, Aero 
Inventory (Switzerland) AG, Aero Inventory (Australia) Pty Limited, 
Aero Inventory (Canada) Inc., Aero Inventory (Bahrain) SPC and Aero 
Inventory Japan KK provide customer support in relation to the 
activities of Aero Inventory (UK) Limited. Aero Inventory (USA) Inc. 
provides services to Aero Inventory (UK) Limited in relation to the 
procurement and purchasing of aircraft parts, logistics and the sale 
of parts to non-contract customers in the USA. 
Review of business
A review of the business and future developments is given in the 
Chairman’s and Chief Executive’s statements.
There are a number of risks and uncertainties, which could impact 
the Group’s performance. The Group has a risk management 
structure in place which is designed to identify, manage and mitigate 
business risk as described in the Corporate Governance report  
on page 25. The Group has experienced, and may in the future 
experience, fluctuations in the results of its operations. There are  
a number of factors that can affect the results. 
Operating risks
These include the achievement and timing of new customer 
agreements, the achievement of the demanding service levels 
included in customer contracts, prolonged disruption to the Group’s 
IT services, the successful implementation of new contracts, the 
Group’s ability to attract and retain the right quality and quantity of 
personnel, logistics and transport, the failure of a product supplied 
by the Group and the ability to procure aircraft parts in such a way 
as to maintain a satisfactory level of profitability. 
External risks
The Group’s performance is also subject to external macro 
economic conditions and changes in factors such as exchange 
rates, interest rates and inflation. A global economic downturn in the 
aerospace industry could negatively affect Aero Inventory’s business. 
Demand for consumable aircraft parts primarily depends on the 
number of flights and hours flown. Any events or circumstances that 
severely affect demand for air travel generally or in a specific region 
to the extent that a portion of the fleet is grounded could affect the 
Group’s business. Operations in emerging or new markets may have 
a higher than average risk of political or economic instability and may 
carry increased credit and financial risk.
 
Financial risks
The Group’s activities expose it to a number of financial risks 
including price risk, credit risk, cash flow risk, liquidity risk and 
exchange rate risk. The use of financial derivatives is governed by the 
Group’s policies approved by the Board of Directors, which provide 
written principles on the use of financial derivatives to manage these 
risks. At present the Group does not use financial derivatives. 
The Group’s financial instruments comprise cash and liquid 
resources and an asset backed revolving facility (‘the Facility’)  
as at 30 June 2008 of $500 million (2007: £85 million, equivalent  
to $170 million). The main purpose of these financial instruments  
is the funding of the Group’s activities. It has been the Group’s  
policy throughout the period under review that no trading in  
financial instruments shall be undertaken.
Credit risk
The Group’s principal financial assets are bank balances and cash, 
trade and other receivables. The Group’s credit risk is primarily 
attributable to its trade receivables, which are concentrated in a 
small number of high value customer accounts. 
The credit risk on liquid funds is limited because the counterparties 
are banks with high credit-ratings assigned by international credit-
rating agencies.
Cash flow risk
The Group’s activities expose it primarily to the financial risks of 
changes in foreign currency exchange rates. Interest bearing assets 
and liabilities are held at fixed rates to ensure certainty of cash flows.
Liquidity risk
Group policy is to maintain the available credit facility to meet its 
anticipated requirements over a two to three year period. The facility, 
which is available until February 2013, may be drawn in advances, 
which may be of 1, 3, 6, 9 or 12 months duration.
Directors’ report
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 23 
Our Performance Financials Governance
Exchange rate risk
A reasonable percentage of the Group’s overhead costs are 
denominated in currencies other than US Dollars. The Group has not 
hedged these transactions. The Group is therefore exposed to a 
degree of risk in respect of changes in the exchange rate between 
the US Dollar and other currencies.
Supplier payment policy
Our strategy is to have mutually beneficial long-term relationships 
with our suppliers. The Group’s policy is to negotiate the terms of 
payment with suppliers and abide by those terms. At 30 June 2008 
the average period of credit taken from the Group’s suppliers 
amounted to 69 days (2007: 76 days). The Company has no  
trade creditors.
 
Directors
The directors who served during the period and to the date of 
signing were:
H N P McCorkell
P R Lewin 
H C Bevan
R W J Davis
P M Docker 
M P Dodge
L Heyworth (appointed 7 September 2007)
C L Trupp 
F Turner
M J Webster
T Davey (resigned 17 December 2007)
Biographical details of the directors are provided on pages  
20 and 21.
In accordance with the Articles of Association of the Company  
H N P McCorkell, P R Lewin and C L Trupp will retire at the next 
Annual General Meeting of the Company and, being eligible, offer 
themselves for re-election. 
 
Directors’ interests
The directors’ interests in the Company’s issued share capital were:
 
  Ordinary Ordinary  
  shares of shares of  
  1.25 pence 1.25 pence  
  each each 
  30 June 30 June  
  2008 2007
H C Bevan  54,552 54,552
R W J Davis  1,008,681 1,008,681
P M Docker  13,265 10,000
M P Dodge  302,973 302,973
L Heyworth (appointed 7 September 2007)  463,848 – 
P R Lewin  1,289,559 1,289,559
H N P McCorkell  109,309 109,309
C L Trupp  – – 
F Turner  616,046 616,046
M J Webster  45,562 17,500
Directors’ share options are detailed in the Remuneration Report on 
pages 26 to 29.
•
•
•
•
•
•
•
•
•
•
•
Substantial interests
At 22 September 2008, the Company has been notified of the 
following interests in 3.0 per cent or more of the issued share capital:
 
  Ordinary  Percentage 
  shares of  of issued 
Investor  1.25p each share capital 
AXA S.A.  1,967,137 4.13%
Calypso Capital Management Limited  2,500,000 5.25%
Credit Suisse Securities (Europe) Limited  2,011,854 4.22%
Deutsche Bank AG  2,676,022 5.62%
Gartmore Investment Limited  3,063,125 6.43%
Henderson Global Investors Limited  5,009,532 10.52%
HSBC Holdings plc  2,805,107 5.89%
Lansdowne Partners Limited  4,704,332 9.88%
The mid-market price of the Company’s shares on 30 June 2008 
was 567.0 pence and the range from 1 July 2007 to 30 June 2008 
was 431.75 pence to 722.5 pence.
Charitable donations
During the year the Company made charitable donations amounting 
to $2,400 (2007: $11,492).
Employee involvement
The number of staff employed by the Group has increased as the 
business has grown. As at 30 June 2008, the Group employed 371 
persons (2007: 268). We seek to encourage employee involvement 
through regular Chief Executive briefings, Company newsletters and 
other formal and informal communication channels. A structured 
performance appraisal system is operated to align individual and 
team objectives and performance to Group goals and all staff are 
eligible to participate in Group incentive arrangements which reward 
both individual and Group performance. The Group’s share option 
schemes and the Aero Inventory plc Long Term Incentive Plan, 
details of which are given at note 22, create further alignment 
between employee interests and those of the Company and  
its shareholders. 
Employment policies generally are developed to apply local legal, 
cultural and employment requirements to an overall Group approach 
of high standards of performance and ethical integrity. 
Equal opportunities/disabled employees 
The Group operates equal opportunity policies which aim to treat 
individuals fairly and not to discriminate on the basis of gender, race, 
ethnic origin, disability or any other prohibited basis. These policies 
apply to recruitment and selection, training and development,  
and promotion. 
Applications for employment by disabled people are given full 
consideration in the context of the aptitudes of the applicant and  
the requirements of the position concerned. If an existing employee 
becomes disabled, all reasonable efforts are made to allow their 
employment to continue through physical accommodations  
or training. 
Back to contents Next page Previous page Back to contents Next page Previous page 24 Aero Inventory plc 2008 
Our Strategy Our Business Our Markets
Authority to allot and issue shares
At the forthcoming Annual General Meeting, the Company will seek 
authority for the allotment and issue of shares equal to 33.3% of the 
issued share capital at the date of the Annual General Meeting, and 
for disapplication of pre-emption rights on new shares equal to 10% 
of the issued share capital at the date of the Annual General Meeting. 
The maximum number of shares to which the authority would apply 
is 15,875,601, and the number of shares for which pre-emption rights 
might be disapplied is 4,762,680. 
During the year 273,083 shares were issued to satisfy option 
exercises by employees. Details of changes in the Company’s  
share capital are given in note 23.
Going concern
On the basis of current financial projections and the facilities 
available, the directors have a reasonable expectation that the 
Company and the Group have adequate resources to continue  
in operational existence for the foreseeable future. For this reason 
they continue to adopt the going concern basis in preparing  
the Accounts.
Auditors
Each of the persons who is a director at the date of approval of this 
report confirms that:
1) so far as the director is aware, there is no relevant audit 
information of which the auditors are unaware; and
2) the director has taken all steps that he ought to have taken as  
a director in order to make himself aware of any relevant audit 
information and to ascertain that the Company’s auditors are 
aware of the information.
This confirmation is given and shall be interpreted in accordance with 
the provisions of s 234ZA of the Companies Act 1985. 
Deloitte & Touche LLP have expressed their willingness to continue 
in office as auditors and a resolution proposing their reappointment 
will be submitted to the forthcoming Annual General Meeting. 
By order of the Board of Directors
Martin Webster 
Secretary
22 September 2008
Registered Office
30 Lancaster Road
New Barnet
Hertfordshire EN4 8AP
Directors’ report continued
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 25 
Our Performance Financials Governance
AIM listed companies are not required to comply with the disclosure 
requirements of the New Combined Code on Corporate Governance 
that was issued in 2006 by the Financial Reporting Council. 
However, the Board supports the principles contained in the New 
Combined Code and is committed to applying the principles set out 
therein where they are appropriate, given the Company’s size. The 
following provides information on how these principles have been 
applied but does not constitute full compliance with the New 
Combined Code.
The Board of Directors
There is a clear division of responsibility between the Chairman and 
the Chief Executive. The Board comprises ten directors of whom four 
are independent Non-executive Directors. None of the Non-executive 
Directors has day-to-day involvement in running the business. The 
board is responsible for overall strategy, approval of major projects 
and consideration of significant financing matters. The Board meets 
at regular scheduled intervals and follows a formal agenda: it can 
also meet to approve specific transactions. 
The directors have access to the advice and services of the 
Company Secretary and may take, at the Company’s expense, 
independent professional advice.
Board committees
The Board has delegated responsibility in specific matters to three 
committees, the Audit Committee, the Nominations Committee and 
the Remuneration Committee. During the year the Audit and 
Remuneration Committees consisted of the four Non-executive 
Directors, F Turner, H N P McCorkell, R W J Davis and L Heyworth 
(from September 2007). The Nominations Committee consists  
of the four non-executive directors, together with P R Lewin.  
H N P McCorkell is the Chairman of the Nominations Committee  
and the Audit Committee, F Turner is the Chairman of the 
Remuneration Committee. 
The Audit Committee receives and reviews reports from 
management and the Company’s auditors relating to the annual and 
interim accounts and the accounting and internal control systems in 
use throughout the Company. The Audit Committee has unrestricted 
access to the Company’s auditors.
The Nominations Committee nominates candidates for the approval 
of the Board and makes recommendations to the board regarding its 
composition and balance.
The Remuneration Committee is responsible for the remuneration  
of the executive directors. The policies adopted by the Committee 
together with details of the directors’ remuneration and service 
agreements are included in the Remuneration report on pages  
26 to 29. 
Internal controls and risk management
The Directors are responsible for the Group’s system of internal 
control and for reviewing its effectiveness. The Group’s system of 
internal control is designed to manage rather than eliminate the risk 
of failure to achieve the Group’s business objectives and therefore 
provides reasonable, rather than absolute, assurance against 
material misstatement or loss. The Group operates a series of 
controls to meet its needs. The Board considers that there is no 
necessity at the present time to establish an independent internal 
audit function. 
The process of monitoring and updating internal controls and 
procedures continued throughout the year and is supplemented by  
a risk management process. Existing processes and practices are 
continually reviewed to ensure that risks are effectively managed 
around a sound internal control structure. A fundamental element  
of the internal control structure involves the identification and 
documentation of significant risks, the likelihood of those risks 
occurring, their potential impact and the plans for managing and 
mitigating each of those risks. These assessments are reviewed by 
the Board. The plans are regularly discussed, updated and reviewed, 
and any matters arising from internal reviews or external audit are 
also considered. 
Relations with shareholders 
The Board understands the need for communication with both 
institutional and private shareholders. In addition to individual 
presentations after publication of results, periodic meetings are  
held with fund managers, analysts and institutional investors.  
The Company’s Annual General Meeting provides a forum for all 
shareholders to attend and put questions to the Board. Results 
statements, announcements and presentations are posted on the 
Company’s website, www.aero-inventory.com.
Corporate governance
Back to contents Next page Previous page Back to contents Next page Previous page 26 Aero Inventory plc 2008 
Our Strategy Our Business Our Markets
The Remuneration Committee 
The Remuneration Committee consists of F Turner, H N P McCorkell, R W J Davis and, since September 2007, L Heyworth. It is chaired by  
F Turner. The Committee has access to advice from the Resources Director who is responsible for Human Resources matters within the 
Company and from the Chief Executive. External advice is obtained when appropriate. The Committee usually meets on a bi-monthly basis.
Remuneration policy
Executive remuneration packages are designed to motivate, reward and retain directors of the calibre necessary to continue the development 
of the Company’s business. Each executive director’s salary and benefits are reviewed annually by the Remuneration Committee. In deciding 
appropriate levels of remuneration the Remuneration Committee has regard to rates of pay for similar jobs in comparable companies as  
well as internal factors such as performance. The Committee also takes account of the level of commitment, dedication and sustained 
performance improvement needed to deliver the potential which the Company’s development to date has created. The Remuneration 
Committee recognises the importance of providing both short- and long-term rewards to the executive directors in recognition of achieving 
performance related targets with the aim of enhancing shareholder value.
The remuneration and terms and conditions of appointment of the non-executive directors are set by the Board.
Service agreements
Service agreements and letters of appointment have been entered into with all the directors of the Company. No notice period is longer than 
12 months. The service agreements with the executive directors are in line with the guidance of the New Combined Code.
 
Directors’ remuneration
An analysis of directors’ emoluments for the year ended 30 June 2008 is set out below. 
Director
     Benefits  Pension 
   Salaries/Fees Bonus in Kind Contribution Total 2008 Total 2007 
   $000 $000 $000 $000 $000 $000
Executive directors:
P R Lewin   837 594 86 105 1,622 1,124
H C Bevan   416 149 5 55 625 713
P M Docker   470 238 1 45 754 537
M P Dodge   490 297 3 62 852 672
C L Trupp   456 238 1 37 732 467
M J Webster   304 186 3 38 531 148
T C N Davey (resigned 17 December 2007)   146 15 2 – 163 – 
   3,119 1,717 101 342 5,279 3,661
Non-executive directors:
H N P McCorkell   223 – 2 – 225 141
R W J Davis   106 – – – 106 34
L Heyworth   99 – – – 99 – 
F Turner   106 – – – 106 141
   534 – 2 – 536 316
   3,653 1,717 103 342 5,815 3,977
Note: Included in the 2007 salary/fees paid in respect of the services of F Turner are consultancy fees of $75,000: there were no such payments in 2007/08. During the period 
$178,000 was paid to one former director, T C N Davey, as compensation for loss of office and termination of employment (2007: nil).
A bonus provision of $2,000,000 (2007: $1,449,000) has been included in the accounts for the year ended 30 June 2008 and will be in relation to potential bonuses payable to 
executive directors and senior managers. This bonus has not been included in the above table as the final bonus amounts have yet to be determined.
Remuneration report
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 27 
Our Performance Financials Governance
Directors’ bonus scheme
An annual bonus scheme is in place, based on a combination of 
stretching corporate and individual performance targets. The bonus 
potential available to executive directors is determined by the 
Remuneration Committee each year. 
Pensions
UK based executive directors are able to participate in a contributory 
defined contribution Group pension arrangement. For C L Trupp, 
who is resident in Australia, a pension arrangement has been 
established in accordance with Australian practice. Company 
contributions are provided as a percentage of the base salary 
excluding bonus and other benefits. 
Long Term Incentive Plan 
With the approval of the Company’s shareholders, the Company has 
implemented a new Long Term Incentive Plan (the ‘Plan’). 
The purpose of the Plan is to provide incentives to executive 
directors, selected senior management and other staff in the form of 
options to acquire newly issued ordinary shares at nominal value 
following the end of a three year period, subject to the achievement 
of the performance condition described below.
During the period covered by the Plan, the executive directors will 
not participate in any further share-based incentive arrangements 
operated by the Company. 
The Company made a grant of options to executive directors under 
the Plan in December 2007, details are set out in the table in the  
next column.
As a condition of participation in the Plan, the executive directors are 
required to invest 50 per cent of all post-tax cash bonuses paid in 
calendar years 2008 and 2009 into Company shares, purchased at 
market value. These shares will be restricted such that the directors 
concerned cannot dispose of them during the lifetime of the Plan or 
the Plan options would lapse. These shares are not subject to 
forfeiture, and the restrictions on disposal will fall away at the end of 
the Plan period (or cessation of employment if earlier). It is expected 
that the Remuneration Committee will determine 2008 bonuses during 
September 2008 and that the investment of 50 per cent of the after 
tax amount for each executive would be made thereafter.
 
Plan options will vest and become exercisable if the Company’s 
share price reaches 1,500 pence per share at the close of any 
business day as recorded by the London Stock Exchange during a 
period beginning on the date of announcement of the Company’s 
results for the financial year ending 30 June 2010 and ending seven 
days after the Company’s 2010 Annual General Meeting. No vesting 
will occur if the target is not met i.e., there will be no partial vesting of 
Plan options for performance below the target level, subject to 
certain provisions regarding a change of control.
If the target is achieved, Plan options will become immediately 
exercisable provided the executive is still employed in the Group.  
On payment of the exercise price, newly issued ordinary shares  
will be used to satisfy the Plan options, and exercise must take  
place within a period of three months after vesting (after which time 
they shall lapse). If the target is not achieved the Plan options will 
lapse immediately.
Once a Plan option has been exercised and shares acquired by 
executives, one half of those shares will be unrestricted and can 
immediately be sold or otherwise transferred. The other half will  
be subject to restrictions for a period of one year, during which  
time the executive will forfeit any right to them if they cease to  
be employed with the Group subject to certain Remuneration 
Committee discretions. 
  Options  
 LTIP Options held at  Exercise 
 granted 30 June  price 
 during year 2008 pence
H C Bevan 446,104 446,104 1.25
P M Docker 557,630 557,630 1.25
M P Dodge 557,630 557,630 1.25
P R Lewin 1,115,260 1,115,260 1.25
C L Trupp 446,104 446,104 1.25
M J Webster 223,052 223,052 1.25
Share options
The Company’s policy on options is to ensure that, through 
successive awards of share options, executive directors have a 
meaningful exposure to the equity of the Company in order to align 
their interests with those of shareholders.
Previously directors have been considered for awards of share 
options under the Approved and Unapproved Share Option 
Schemes from time to time as considered appropriate by the 
Remuneration Committee. Other than awards made under the 
Executive Option Plan of the Unapproved Scheme, as described 
below, awards have not been made subject to performance 
conditions. No option awards are to be made to executive  
directors during the Long Term Incentive Plan performance  
period described above.
In 2006 and 2007, options were granted to executive directors under 
the terms of the Executive Option Plan, a performance based 
executive share arrangement within the Aero Inventory plc 
Unapproved Share Option Scheme. These options are exercisable 
between three and ten years from the date of the grant subject to the 
achievement of performance conditions. In respect of the award 
made in 2006, the full award will vest if the Company achieves 
earnings per share (as defined in the rules of the Plan) of 65 pence 
per share for the financial year ending on 30 June 2008. In the event 
that earnings per share are greater than 50 pence but less than 65 
pence, partial exercise may be made on a stepped scale. In respect 
of the award made in 2007, the full award will vest if the Company 
achieves earnings per share (as defined in the rules of the Plan) of 80 
pence per share for the financial year ending on 30 June 2009. In the 
event that earnings per share are greater than 60 pence but less 
than 80 pence, partial exercise may be made on a stepped scale.
UK based executive directors are also eligible to participate in the 
Aero Inventory plc Savings-Related Share Option Scheme which is 
open to all permanent UK employees. 
Back to contents Next page Previous page Back to contents Next page Previous page 28 Aero Inventory plc 2008 
Our Strategy Our Business Our Markets
Details of options held by executive directors under the Aero Inventory plc Enterprise Management Incentive Scheme (‘EMI’), the Aero 
Inventory plc Share Option Scheme (‘SOS’), the Aero Inventory plc Unapproved Share Option Scheme (‘USOS’), the Executive Option Plan 
within the Aero Inventory plc Unapproved Share Option Scheme (‘EOP’) and the Aero Inventory plc Savings-Related Share Option Scheme 
(‘SRSOS’) are set out below.  
 Options     Options 
 held as at  Options Options Options held at Exercise 
 1 July  granted lapsed exercised 30 June price Date from 
 2007 during year during year during year 2008 pence which exercisable Expiry date
H C Bevan
EMI 32,123 – – – 32,123 390 9 April 2005 8 April 2012
USOS 29,133 – – – 29,133 343 29 October 2005 28 October 2013
USOS 34,799 – – – 34,799 359 27 November 2005 26 November 2012
USOS 160,358 – – – 160,358 249 22 October 2007 21 October 2014
SRSOS 2,486 – – – 2,486 376 1 May 2009 31 October 2009
EOP 34,125 – – – 34,125 410 1 May 2009 30 April 2016
USOS 21,289 – – – 21,829 347 16 November 2009 15 November 2016
EOP 54,794 – – – 54,794 370 23 April 2010 22 April 2017
P M Docker
USOS 23,862 – – – 23,862 293 1 April 2007 31 March 2014
SOS 10,226 – – – 10,226 293 29 April 2007 28 April 2014
USOS 128,286 – – – 128,286 249 22 October 2007 21 October 2014
USOS 5,507 – – – 5,507 363 4 November 2008 3 November 2015
EOP 26,812 – – – 26,812 410 1 May 2009 30 April 2016
USOS 57,786 – – – 57,786 347 16 November 2009 15 November 2016
EOP 43,835 – – – 43,835 370 23 April 2010 22 April 2017
SRSOS 4,910 – – – 4,910 333 30 April 2010 30 October 2010
M P Dodge
SOS 12,026 – – – 12,026 249 22 October 2007 21 October 2014
USOS 148,331 – – – 148,331 249 22 October 2007 21 October 2014
USOS 44,054 – – – 44,054 363 4 November 2008 3 November 2015
EOP 34,125 – – – 34,125 410 1 May 2009 30 April 2016
USOS 69,165 – – – 69,165 347 16 November 2009 15 November 2016
EOP 54,794 – – – 54,794 370 23 April 2010 22 April 2017
SRSOS 4,910 – – – 4,910 333 30 April 2010 30 October 2010
P R Lewin
SOS 12,026 – – – 12,026 249 22 October 2007 21 October 2014
USOS 204,456 – – – 204,456 249 22 October 2007 21 October 2014
USOS 82,602 – – – 82,602 363 4 November 2008 3 November 2015
EOP 51,188 – – – 51,188 410 1 May 2009 30 April 2016
USOS 103,747 – – – 103,747 347 16 November 2009 15 November 2016
EOP 82,191 – – – 82,191 370 23 April 2010 22 April 2017
SRSOS 4,910 – – – 4,910 333 30 April 2010 30 October 2010
C L Trupp
EMI 6,264 – – – 6,264 287 30 April 2006 29 April 2013
EMI 13,186 – – – 13,186 379 10 October 2006 9 October 2013
SOS 7,516 – – – 7,516 305 29 April 2007 28 April 2014
USOS 106,721 – – – 106,721 275 15 April 2008 14 April 2015
SOS 2,534 – – – 2,534 275 15 April 2008 14 April 2015
USOS 2,493 – – – 2,493 363 4 November 2008 3 November 2015
EOP 24,375 – – – 24,375 410 1 May 2009 30 April 2016
USOS 69,178 – – – 69,178 347 16 November 2009 15 November 2016
EOP 43,835 – – – 43,835 370 23 April 2010 22 April 2017
Remuneration report continued
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 29 
Our Performance Financials Governance
 Options     Options 
 held as at  Options Options Options held at Exercise 
 1 July  granted lapsed exercised 30 June price Date from 
 2007 during year during year during year 2008 pence which exercisable Expiry date
M J Webster
SOS 12,026 – – – 12,026 249 22 October 2007 21 October 2014
USOS 28,062 – – 28,062 – 249 22 October 2007 21 October 2014
USOS 20,651 – – – 20,651 363 14 October 2008 13 October 2015
USOS 5,507 – – – 5,507 363 4 November 2008 3 November 2015
SRSOS 4,281 – – – 4,281 376 1 May 2011 31 October 2011
EOP 18,281 – – – 18,281 410 1 May 2009 30 April 2016
USOS 93,660 – – – 93,660 347 16 November 2009 15 November 2016
EOP 34,246 – – – 34,246 370 23 April 2010 22 April 2017
Apart from options granted under the terms of the Aero Inventory plc Savings-Related Share Option Scheme where there is a limited exercise 
period after the maturity of the related savings contract, options are exercisable between three and ten years from the date of the grant. 
Signed by order of the Board of Directors
Martin Webster
Resources Director 
22 September 2008
Back to contents Next page Previous page Back to contents Next page Previous page 30 Aero Inventory plc 2008 
Our Strategy Our Business Our Markets
The directors are responsible for preparing the Annual Report, 
Directors’ Remuneration Report and the financial statements in 
accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements 
for each financial year. The directors are required by the IAS 
Regulation to prepare the Group financial statements under 
International Financial Reporting Standards (IFRSs) as adopted by 
the European Union and have also elected to prepare the Parent 
Company financial statements in accordance with IFRSs as adopted 
by the European Union. The financial statements are also required by 
law to be properly prepared in accordance with the Companies Act 
1985 and Article 4 of the IAS Regulation.
 
International Accounting Standard 1 requires that financial 
statements present fairly for each financial year the Company’s 
financial position, financial performance and cash flows. This 
requires the faithful representation of the effects of transactions, 
other events and conditions in accordance with the definitions and 
recognition criteria for assets, liabilities, income and expenses set 
out in the International Accounting Standards Board’s ‘Framework 
for the preparation and presentation of financial statements’. In 
virtually all circumstances, a fair presentation will be achieved by 
compliance with all applicable IFRSs. However, directors are also 
required to:
properly select and apply accounting policies;
present information, including accounting policies, in a manner 
that provides relevant, reliable, comparable and understandable 
information; and 
provide additional disclosures when compliance with the  
specific requirements in IFRSs are insufficient to enable users  
to understand the impact of particular transactions, other  
events and conditions on the entity’s financial position and 
financial performance.
The directors are responsible for keeping proper accounting records 
that disclose with reasonable accuracy at any time the financial 
position of the Company and enable them to ensure that the financial 
statements comply with the Companies Act 1985. They are also 
responsible for safeguarding the assets of the Company and hence 
for taking reasonable steps for the prevention and detection of fraud 
and other irregularities.
•
•
•
Statement of directors’ responsibilities
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 31 
Our Performance Governance Financials
We have audited the Group and Parent Company financial 
statements (the ‘financial statements’) of Aero Inventory plc for the 
year ended 30 June 2008 which comprise the Consolidated Income 
Statement, the Consolidated Statement of Recognised Income and 
Expense, the Consolidated and Company Balance Sheets, the 
Consolidated Cash Flow Statement, and the related notes 1 to 28. 
These financial statements have been prepared under the 
accounting policies set out therein.
This report is made solely to the Company’s members, as a body, in 
accordance with section 235 of the Companies Act 1985. Our audit 
work has been undertaken so that we might state to the Company’s 
members those matters we are required to state to them in an 
auditors’ report and for no other purpose. To the fullest extent 
permitted by law, we do not accept or assume responsibility to 
anyone other than the Company and the Company’s members as  
a body, for our audit work, for this report, or for the opinions we  
have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual Report  
and the financial statements in accordance with applicable law  
and International Financial Reporting Standards (IFRSs) as  
adopted by the European Union are set out in the Statement of  
Directors’ Responsibilities.
Our responsibility is to audit the financial statements in accordance 
with relevant legal and regulatory requirements and International 
Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements 
give a true and fair view and are properly prepared in accordance 
with the Companies Act 1985. We also report to you whether in our 
opinion the information given in the Directors’ Report is consistent 
with the financial statements. The information given in the Directors’ 
Report includes that specific information presented in the Chairman’s 
and Chief Executive’s statements that are cross referred from the 
Review of Business section of the Directors’ Report.
In addition we report to you if, in our opinion, the Company has  
not kept proper accounting records, if we have not received all  
the information and explanations we require for our audit, or if 
information specified by law regarding directors’ remuneration  
and other transactions is not disclosed.
We read the other information contained in the Annual Report  
and consider whether it is consistent with the audited financial 
statements. This other information comprises only the Directors’ 
Report, the Chairman’s Statement and the Chief Executive’s 
Statement. We consider the implications for our report if we become 
aware of any apparent misstatements or material inconsistencies 
with the financial statements. Our responsibilities do not extend to 
any further information outside the Annual Report.
Basis of audit opinion
We conducted our audit in accordance with International Standards 
on Auditing (UK and Ireland) issued by the Auditing Practices Board. 
An audit includes examination, on a test basis, of evidence relevant 
to the amounts and disclosures in the financial statements. It also 
includes an assessment of the significant estimates and judgements 
made by the directors in the preparation of the financial statements, 
and of whether the accounting policies are appropriate to the 
Group’s and Company’s circumstances, consistently applied and 
adequately disclosed.
We planned and performed our audit so as to obtain all the 
information and explanations which we considered necessary in 
order to provide us with sufficient evidence to give reasonable 
assurance that the financial statements are free from material 
misstatement, whether caused by fraud or other irregularity or error. 
In forming our opinion we also evaluated the overall adequacy of the 
presentation of information in the financial statements.
Opinion
In our opinion:
the Group financial statements give a true and fair view, in 
accordance with IFRSs as adopted by the European Union, of the 
state of the Group’s affairs as at 30 June 2008 and of its profit for 
the year then ended;
the Parent Company’s financial statements give a true and fair 
view, in accordance with IFRSs as adopted by the European 
Union as applied in accordance with the provisions of the 
Companies Act 1985, of the state of the Parent Company’s affairs 
as at 30 June 2008;
the financial statements have been properly prepared in 
accordance with the Companies Act 1985; and
the information given in the Directors’ Report is consistent with 
the financial statements.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors
Reading, United Kingdom
22 September 2008
•
•
•
•
Independent auditors’ report to the members of Aero Inventory plc
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32 Aero Inventory plc 2008 
       2008 2007 
      Notes $’millions $’millions
Revenue      3 440.0 247.0
Cost of revenue       (278.2) (164.2)
Net operating expenses       (68.5) (29.9)
Operating profit      5 93.3 52.9
Investment revenue      3, 8 – 0.8
Finance costs      9 (20.2) (8.1)
Profit before tax       73.1 45.6
Tax      10 (21.5) (14.5)
Profit for the year       51.6 31.1
Earnings per share (expressed in cents per share)
Basic      12 108.7c 65.9c
Diluted      12 102.0c 65.3c
All amounts are derived from continuing operations.
Consolidated income statement
for the year ending 30 June 2008
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Aero Inventory plc 2008 33 
       2008 2007 
      Note $’millions $’millions
Taxation on share based payments      24 1.4  –
Net income recognised directly in equity       1.4 –
Profit for the year        51.6 31.1
Total recognised income for the year       53.0 31.1
Consolidated statement of recognised income and expense
for the year ending 30 June 2008
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34 Aero Inventory plc 2008 
       2008 2007 
      Notes $’millions $’millions
Non-current assets
Intangible assets      13 52.8 37.5
Property, plant and equipment      14 3.9 2.5
       56.7 40.0
Current assets
Inventories      15 690.1 390.9
Trade and other receivables      16 96.8 51.3
Deferred taxation      10 2.8 0.1
Cash and cash equivalents      17 1.2 0.4
       790.9 442.7
Total assets       847.6 482.7
Current liabilities
Trade and other payables      18 141.9 101.0
Corporation tax payable      10 19.3 16.9
       161.2 117.9
Non-current liabilities
Borrowings      19 392.2 111.0
Total liabilities       553.4 228.9
Net assets       294.2 253.8
Equity
Share capital      23 1.0 1.0
Share premium account      24 212.1 210.3
Share based payment reserve      24 3.3 2.0
Retained earnings      24 77.8 40.5
Total equity      25 294.2 253.8
The accounts were approved by the Board on 22 September 2008 and signed on its behalf:
Rupert Lewin 
Chief Executive
Hugh Bevan
Finance Director
Consolidated balance sheet
As at 30 June 2008
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Aero Inventory plc 2008 35 
Consolidated cash flow statement
for the year ending 30 June 2008
       2008 2007 
      Notes $’millions $’millions
Operating activities
Profit for the year       51.6 31.1
Adjustments to reconcile profit for the period to net cash inflow from operating activities:
Net finance costs       18.3 7.3
Income tax expense       21.5 14.5
Depreciation of property, plant and equipment       1.9 0.3
Amortisation of intangible assets       10.2 2.5
Cost of share based payments       1.3 0.8
Increase in inventories       (300.5) (216.4)
Increase in trade and other receivables       (45.5) (4.9)
Increase in trade and other payables       36.5 45.5
Increase in provisions       1.3 1.4
Cash absorbed by operations       (203.4) (117.9)
Income taxes paid       (20.0) (3.3)
Net cash outflows from operating activities       (223.4) (121.2)
Investing activities
Purchase of property, plant and equipment       (3.3) (2.1)
Purchase of intangible assets       (25.8) (38.5)
Net cash flows used in investing activities       (29.1) (40.6)
Financing activities
Net interest paid       (14.0) (5.7)
Proceeds on issue of ordinary share – net of expenses       1.8 1.0
Dividends paid       (15.7) (10.2)
Repayment of borrowings      19 (111.0) –
New bank loans raised      19 410.9 112.2
Loan costs      19 (18.7) (1.2)
Net cash flows from financing activities       253.3 96.1
Net increase/(decrease) in cash and cash equivalents       0.8 (65.7)
Cash and cash equivalents at beginning of year      17 0.4 66.1
Cash and cash equivalents at end of year      17 1.2 0.4
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36 Aero Inventory plc 2008 
Notes to the consolidated financial statements
at 30 June 2008
1. Authorisation of financial statements and statement of compliance with IFRSs
Aero Inventory plc is a public limited company incorporated under the Companies Act 1985 and domiciled in the United Kingdom.  
The Company’s ordinary shares are traded on the Alternative Investment Market (AIM).
The principal accounting policies adopted by the Group are set out in note 2.
2. Significant accounting policies
a) Basis of accounting
The financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs) as 
adopted by the European Union as they apply to the financial statements of the Group for the year ended 30 June 2008 and applied in 
accordance with the Companies Act 1985. The disclosures required by IFRS 1 concerning the transition from United Kingdom Generally 
Accepted Accounting Practice (UK GAAP) to IFRSs are given in note 27.
The Group financial statements are presented in United States (US) Dollars and all values are rounded to the nearest 0.1 million ($’million) 
except when otherwise indicated.
The Company financial statements are presented in Sterling and values are rounded to the nearest 0.1 thousand (£’000).
The financial statements have been prepared on the historical cost basis, except for the valuation of financial instruments. The principal 
accounting policies adopted are set out below.
b) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its 
subsidiaries) made up to 30 June each year. Subsidiaries are all entities over which the Group has the power to govern the financial and 
operating policies of the entity concerned, generally accompanying a shareholding of more than one half of the voting rights.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
c) New standards and interpretations
The International Accounting Standards Board (‘IASB’) and International Financial Reporting Interpretations Committee (‘IFRIC’) have issued 
the following standards and interpretations with effective dates after the date of these financial statements that have not yet been adopted by 
the Company.
  Effective date
IASB
IAS 23 Amendment – Borrowing Costs 1 January 2009*
IFRS 2 Amendment – Share-based Payment 1 January 2009*
IAS 1 Comprehensive revision – Presentation of Financial Statements 1 January 2009*
IAS 32 Amendment – Financial Instruments: Presentation 1 January 2009*
IFRS 8 Operating Segments 1 January 2009
IFRS 3 Comprehensive revision – Business Combinations 1 July 2009*
IAS 27 Amendment – Consolidated and Separate Financial Statements 1 July 2009*
IAS 28 Amendment – Investments in Associates 1 July 2009*
IAS 31 Amendment – Interests in Joint Ventures 1 July 2009*
IFRIC
IFRIC 12 Service Concession Arrangements 1 January 2008
IFRIC 13 Customer Loyalty Programmes 1 July 2008*
IFRIC 14 IAS19 – The limit on a defined benefit asset, minimum funding requirements and their interaction 1 January 2008
* not yet endorsed by the EU.
Whilst the revised IAS 1 will have no impact on the measurement of the Company’s results or net assets it is likely to result in certain changes 
in the presentation of the Company’s financial statements following adoption. The directors do not anticipate that the adoption of the above 
standards will have a material impact on the consolidated financial statements of the Group in the period of initial application.
New standards early adopted
  Effective date
IFRS 8 Operating Segments 1 January 2009
IFRS 8 requires disclosure based on information presented to the Board. Whilst this does not change the business segments about which 
information is given, the secondary segment information has been replaced by country specific analysis of revenues and non-current assets.
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Aero Inventory plc 2008 37 
2. Significant accounting policies continued
d) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services 
provided in the normal course of business, net of discounts, VAT and other revenue-related taxes.
Revenue for goods is recognised when title has passed to the customer.
The billings of pre-contract consumption are not recognised as revenue, as the Group does not bear the risks and rewards of the inventory 
until contract signing.
e) Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the 
lessee. All other leases are classified as operating leases.
Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease. Benefits received 
and receivable as an incentive to enter into an operating lease are also spread on a straight-line basis over the lease term.
f) Foreign currencies
The individual financial statements of each group company are presented in the currency of the primary economic environment in which it 
operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each group 
company are expressed in the US Dollar, which is the functional currency of the principal trading entity and the presentation currency for the 
consolidated financial statements.
In preparing the financial statements of the individual companies, transactions in currencies other than the entity’s functional currency (foreign 
currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary assets 
and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary 
items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was 
determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
g) Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the income 
statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are 
never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted 
by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the 
financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet 
liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to 
the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and 
liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a 
business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, associates and interests in joint 
ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference 
will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable 
that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred 
tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the 
deferred tax is also dealt with in equity.
The Group intends to settle its current tax assets and liabilities on a net basis.
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38 Aero Inventory plc 2008 
Notes to the consolidated financial statements continued
at 30 June 2008
2. Significant accounting policies continued
h) Property, plant and equipment
Fixtures and equipment are stated at cost less accumulated depreciation and any recognised impairment loss. Depreciation is charged so as 
to write off the cost of assets, less estimated residual value, other than land and properties under construction, over their estimated useful 
lives, using the straight-line method, on the following bases:
Leasehold improvements over the unexpired term of the lease
Fixtures and equipment 12.5%–33
1
/ 3%
Computer equipment 33
1
/ 3%
Motor vehicles 30%
i) Intangible assets
Database rights
Database rights are included at cost and amortised on a straight-line basis over a period of ten years which is their estimated useful 
economic life. Provision is made for any impairment.
Software assets
Internal staffing costs relating to the development of IT systems are capitalised and amortised over a period of three years which is their 
estimated useful economic life. Provision is made for any impairment.
j) Impairment of tangible and intangible assets
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any 
indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated 
in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from 
other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. An intangible asset with 
an indefinite useful life is tested for impairment annually and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows 
are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and 
the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the 
asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash generating unit) is increased to the revised estimate 
of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined 
had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised as 
income immediately.
k) Inventories
Inventories are valued at the lower of cost (including appropriate overheads) and net realisable value after making due allowance for obsolete 
and slow-moving inventory. The Company regards inventory as slow moving where it is unlikely to be sold within the periods of its various 
long-term inventory management contracts.
Where the Group purchases bulk stock at the commencement of a new contract, the price paid is determined based on physical inventory 
extant at a date which is typically several months before contract signing date. This allows the Group to evaluate the material in advance of 
purchase. The cost of the bulk purchase is allocated across all lines based on selling price. The consumption of any of this inventory by the 
customer in advance of contract signing is billed to the customer at contract prices. The billings of pre-contract consumption are not 
recognised as revenue, as the Group does not bear the risks and rewards of the inventory until contract signing, but result in a margin 
accruing to the Group. This margin is deducted from the cost of inventory at signing date on a line by line basis. Similarly any purchases of 
inventory by the customer after the bulk stock is determined are paid for by the Group and recorded at cost on a line by line basis. Where, on 
a line by line basis, accrued margin on consumption exceeds cost to the Group the resulting credit is recorded as a reduction in cost of 
revenue over an appropriate period.
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Aero Inventory plc 2008 39 
2. Significant accounting policies continued
l) Financial instruments
Financial assets and financial liabilities are recognised in the Group’s balance sheet when the Group becomes a party to the contractual 
provisions of the instrument.
Loans and receivables
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in an active market are 
classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any 
impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the recognition of 
interest would be immaterial.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments that are readily 
convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. Financial 
liabilities, including borrowings, are initially measured at fair value, net of transaction costs.
m) Finance costs
Finance costs are amortised over the term of the instrument at a constant rate on the carrying amount.
n) Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that the Group will be 
required to settle that obligation. Provisions are measured at the directors’ best estimate of the expenditure required to settle the obligation at 
the balance sheet date, and are discounted to present value where the effect is material.
o) Share-based payments
The Group has applied the requirements of IFRS 2, Share-based Payment. In accordance with the transitional provisions, IFRS 2 has been 
applied to all grants of equity instruments after 7 November 2002 that were unvested at 1 July 2006.
The Group issues equity-settled and cash-settled share-based payments to certain employees.
Equity-settled share-based payments are measured at fair value (excluding the effect of non market-based vesting conditions) at the date of 
grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the 
vesting period, based on the group’s estimate of shares that will eventually vest and adjusted for the effect of non market-based vesting 
conditions.
Fair value is measured by use of an appropriate valuation model such as the Black-Scholes model. The expected life used in the  
model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and  
behavioural considerations.
p) Critical judgements and key sources of estimation uncertainty
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts 
reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. 
However, the nature of estimation means that actual outcomes could differ from those estimates.
In the process of applying the Group’s accounting policies, management has made the following judgements, apart from those involving 
estimations, which have the most significant effect on the amounts recognised in the financial statements:
Inventory
Pre-contract consumption billed to the customer results in a margin accruing to the Group on contract signing dates. Management 
judgement is required in determining the appropriate period over which this margin is released.
The Company regards inventory as slow moving where it is unlikely to be sold within the periods of its various long-term inventory 
management contracts.
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40 Aero Inventory plc 2008 
Notes to the consolidated financial statements continued
at 30 June 2008
2. Significant accounting policies continued
Intangibles
Database rights are acquired with inventories on new contracts. Management judgement is required in determining the value to be assigned 
to those rights and their useful lives.
Share-based payments
The Group measure the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date 
at which they are granted. Judgement is required in determining the most appropriate valuation model for a grant of equity instruments, 
depending on the terms and conditions of the grant. Management are also required to use judgement in determining the most appropriate 
inputs to the valuation model including expected life of the option, volatility and dividend yield. The assumptions and models used are 
disclosed in note 22.
3. Revenue
Revenue recognised in the income statement is analysed as follows:
       2008 2007 
       $’millions $’millions
Sale of goods       440.0 247.0
Finance revenue       – 0.8
       440.0 247.8
4. Business segments
All turnover arose from the activity of procurement and inventory management for the aerospace industry.
An analysis of turnover by type of sale is as follows:
       2008 2007 
       $’millions $’millions
Revenue to contracted customers under long-term supply agreements      434.3 241.0
Other revenue       5.7 6.0
       440.0 247.0
Geographical analysis is presented below:
       2008 2007 
       $’millions $’millions
Turnover
UK, rest of Europe and Middle East       78.1 73.5
America       143.4 –
Asia Pacific       218.5 173.5
       440.0 247.0
       2008 2007 
       $’millions $’millions
Assets
UK, rest of Europe and Middle East       258.6 206.7
America       231.4 7.3
Asia Pacific       357.6 268.7
       847.6 482.7
 
       2008 2007 
       $’millions $’millions
Liabilities
UK, rest of Europe and Middle East       480.4 197.0
America       23.2 9.5
Asia Pacific       49.8 22.4
       553.4 228.9
 
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Aero Inventory plc 2008 41 
5. Operating profit
The following items have been charged/(credited) in arriving at operating profit:
       2008 2007 
       $’millions $’millions
Staff costs (see note 7)       32.9 18.2
Depreciation of property, plant and equipment       1.9 0.3
Amortisation of intangible assets       10.2 2.5
Operating lease rentals (see note 20):
– plant and machinery       0.1 0.2
– other       1.0 0.9
Net foreign currency differences       – (1.0)
6. Auditors’ remuneration
The Group paid the following amounts to its auditors, Deloitte & Touche LLP, in respect of the audit of the financial statements and for other 
services provided to the Group.
       2008 2007 
       $’millions $’millions
Audit fees       0.4 0.3
Other fees to auditors:
Other services pursuant to legislation       0.2 0.1
Other services relating to taxation       0.2 0.1
       0.8 0.5
Fees payable to the Company’s auditors for the audit of the Company’s accounts were $80,000 (2007: $70,000). Fees payable to the 
Company’s auditors for the audit of the Company’s subsidiaries, pursuant to legislation, were $280,000 (2007: $210,000).
Non-audit fees consist of tax services (2008: $180,000, 2007: $110,000) and other services only the Company’s auditors can be reasonably 
expected to perform (2008: $172,000, 2007: $98,000).
7. Staff costs and directors’ emoluments
a) Staff costs, including executive directors’ remuneration, were as follows:
       2008 2007 
       $’millions $’millions
Wages and salaries       28.6 15.5
Pension costs       1.1 0.5
Social security costs       1.9 1.3
Share based payment costs (note 22)       1.3 0.9
       32.9 18.2
The average monthly number of employees, including directors, during the year was as follows:
       2008 2007 
       No. No.
Operations and administration       297 184
       297 184
b) Directors’ emoluments were as follows:
       2008 2007 
       $’millions $’millions
Remuneration       5.8 3.9
The highest paid director received:
Salaries/fees       1.4 0.9
Pension       0.1 0.1
Benefits in kind       0.1 0.1
       1.6 1.1
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42 Aero Inventory plc 2008 
Notes to the consolidated financial statements continued
at 30 June 2008
8. Investment revenue
       2008 2007 
       $’millions $’millions
Bank interest receivable       – 0.8
9. Finance costs
       2008 2007 
       $’millions $’millions
Interest on bank facilities       18.3 7.7
Amortisation of loan costs       1.9 0.4
Total interest payable       20.2 8.1
10. Tax
a) Tax on profit on ordinary activities
       2008 2007 
       $’millions $’millions
Current year taxation:
UK Corporation Tax       22.8 14.2
Adjustment in respect of prior year       (0.2) 0.7
Foreign taxation       0.2 –
       22.8 14.9
Deferred tax:
Origination and reversal of temporary differences       (1.3) (0.4)
Total deferred tax (note 10(c))       (1.3) (0.4)
Tax charge in the income statement       21.5 14.5
b) Reconciliation of the total tax charge
The tax assessed for the year is lower than the standard rate of UK Corporation Tax of 29.5 per cent (2007: 30 per cent). The differences are 
explained below:
       2008 2007 
       $’millions $’millions
Profit before tax       73.1 45.6
Profit on ordinary items activities multiplied by standard rate of Corporation Tax in the UK of 29.5 per cent  
(2007: 30 per cent)       21.6 13.7
Tax effects of:
Expenses not deductible for tax purposes       0.1 0.4
Adjustment in respect of prior years       (0.2) 0.4
Total tax expense       21.5 14.5
The UK Corporation Tax rate decreased from 30 per cent to 28 per cent from 1 April 2008 resulting in an average standard rate of 29.5 per 
cent for the year ending 30 June 2008.
c) Deferred tax
Deferred tax included in the consolidated balance sheet is as follows:
       Other  
     Accelerated Share short-term 
     capital based timing  
     allowances payments difference Total 
     $’millions $’millions $’millions $’millions
At 1 July 2006     0.4 (0.2) (0.5) (0.3)
Credit/(charge) to income statement for the year     1.1 0.3 (1.0) 0.4
At 1 July 2007     1.5 0.1 (1.5) 0.1
(Charge)/credit to income statement for the year     (1.6) 0.4 2.5 1.3
Credit to equity for the year     – 1.4 – 1.4
At 30 June 2008     (0.1) 1.9 1.0 2.8
       2008 2007 
       $’millions $’millions
Disclosed on the consolidated balance sheet
Deferred tax asset       2.9 1.6
Deferred tax liability       (0.1) (1.5)
       2.8 0.1
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Aero Inventory plc 2008 43 
11. Dividends paid and proposed
       2008 2007 
       $’millions $’millions
Amounts recognised as distributions to equity holders in the year:
Final dividend for the year ended 30 June 2007 of 10.5 pence per share, equivalent to 21.42 cents per share 
 (2006: 6.7 pence, equivalent to 13.45 cents per share)       10.0 5.8
Interim dividend for the year ended 30 June 2008 of 6 pence per share, equivalent to 11.27 cents per share 
 (2007: 4.5 pence, equivalent to 8.82 cents per share)       5.7 4.7
       15.7 10.5
Proposed final dividend for the year ended 30 June 2008 of 12 pence per share, equivalent to 23.78 cents  
 per share at the period exchange rate (2007: 10.5 pence, equivalent to 20.3 cents per share)    11.3 9.6
The proposed dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these 
financial statements.
12. Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
Earnings
       2008 2007 
       $’millions $’millions
Earnings for the purposes of basic and diluted earnings per share      51.6 31.1
Number of shares
       2008 2007 
       Number Number
Weighted average number of ordinary shares for the purposes of basic earnings per share   47 ,463,677 47 ,205,097
Effect of dilutive potential ordinary shares:
Share options      3,139,320 417 ,727
Weighted average number of ordinary shares for the purposes of diluted earnings per share   50,602,997 47 ,622,824
       2008 2007 
       Cents Cents
Basic earnings per share       108.7 65.9
Effect of dilutive potential ordinary shares       (6.7) (0.6)
Diluted earnings per share       102.0 65.3
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44 Aero Inventory plc 2008 
Notes to the consolidated financial statements continued
at 30 June 2008
13. Intangible assets
       Database 
      Software rights Total 
      $’millions $’millions $’millions
Cost:
1 July 2007      14.8 26.4 41.2
Additions      10.8 15.0 25.8
Disposals      (0.7) – (0.7)
At 30 June 2008      24.9 41.4 66.3
Amortisation:
1 July 2007      1.7 2.0 3.7
Charge for the year      6.6 3.6 10.2
Disposals      (0.4) – (0.4)
At 30 June 2008      7.9 5.6 13.5
Net book value:
At 30 June 2008      17.0 35.8 52.8
At 30 June 2007      13.1 24.4 37.5
The amortisation period for software development costs incurred by the Group is three years.
Database rights are amortised on a straight-line basis over a period of ten years.
14. Property, plant and equipment
    Leasehold Fixtures & Motor IT 
    improvements equipment vehicles systems Total 
    $’millions $’millions $’millions $’millions $’millions
Cost:
At 1 July 2007    0.5 2.7 0.2 1.9 5.3
Additions    0.7 0.7 – 1.9 3.3
At 30 June 2008    1.2 3.4 0.2 3.8 8.6
Depreciation:
At 1 July 2007    0.2 1.6 0.2 0.8 2.8
Charge for the year    0.2 0.4 – 1.3 1.9
At 30 June 2008    0.4 2.0 0.2 2.1 4.7
Net book value:
At 30 June 2008    0.8 1.4 – 1.7 3.9
At 30 June 2007    0.3 1.1 – 1.1 2.5
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Aero Inventory plc 2008 45 
15. Inventories
       2008 2007 
       $’millions $’millions
Goods for resale       690.1 390.9
       690.1 390.9
Inventories with a carrying amount of $573.5 million (2007: $nil) have been pledged as security for the Group’s loan facilities.
16. Trade and other receivables
       2008 2007 
       $’millions $’millions
Trade receivables       11.6 28.1
Accrued revenue       78.6 13.6
Prepayments       6.6 5.9
Other debtors       – 3.7
       96.8 51.3
Trade receivables are non-interest bearing and are generally on 30–90 days’ terms and are shown net of a provision for impairment. The 
average debtors days for the period is ten (2007: 40). As at 30 June 2008, trade receivables at nominal value of $nil (2007: $1.7 million) were 
impaired and fully provided for. Movements in the provision for impairment of receivables were as follows:
       2008 2007 
       $’millions $’millions
At 1 July       1.7 1.4
Charge for the year       – 0.3
Unused amounts released       (1.7) –
At 30 June       – 1.7
As at 30 June, the analysis of trade receivables that were past due but not impaired is as follows:
 Past due but not impaired
     Neither past 
    Total  nor impaired <30 days 30-60 days >60 days 
    $’millions $’millions $’millions $’millions $’millions
2007    28.1 22.1 1.7 0.4 3.9
2008    11.6 6.6 2.8 1.0 1.2
The credit quality of trade receivables that are neither past due nor impaired is assessed by reference to external credit ratings, where 
available, or historical information relating to counterparty default rates.
The directors consider that the carrying amounts of trade and other receivables approximate their fair value.
17. Cash and cash equivalents
       2008 2007 
       $’millions $’millions
Cash at bank       1.2 0.4
Cash at bank earns interest at floating rates based on bank deposit rates. The book value of cash and cash equivalents approximates their 
fair value.
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46 Aero Inventory plc 2008 
Notes to the consolidated financial statements continued
at 30 June 2008
18. Trade and other payables
       2008 2007 
       $’millions $’millions
Trade payables       53.0 90.4
Other taxation and social security       1.5 0.3
Other creditors       0.3 0.4
Accruals and deferred income       79.9 7.0
Accrued interest payable       7.2 2.9
       141.9 101.0
Trade and other payables are non-interest bearing and it is the Company’s policy to pay within the stated terms which typically vary from  
30–45 days. Due to their short maturities, the book value of trade payables approximates to their fair value.
19. Borrowings and net debt
       2008 2007 
       $’millions $’millions
Cash
Bank       1.2 0.4
Borrowings
Bank loans       410.9 112.2
Loan costs       (18.7) (1.2)
       392.2 111.0
Net debt       391.0 110.6
 
At 30 June 2008, the Group had available $89.1 million (2007: $57,000) of undrawn committed borrowing facilities.
The bank loan is secured by a fixed and floating charge which is secured by the trade receivables and inventory of the Group. The book  
value of financial liabilities approximates their fair value.
In February 2008 a new five year syndicated asset based lending facility was signed and increased the size of our available banking facility  
from $356 million to $425 million. The facility was increased on 23 June 2008 to $500 million.
       2008 2007 
       $’millions $’millions
The borrowings are repayable as follows:
 On demand or within one year       – –
 In the second year       – –
 In the third to fifth years inclusive       410.9 112.2
       410.9 112.2
Less: Amount due for settlement within 12 months (shown under current liabilities)     – –
Amounts due for settlement after 12 months       410.9 112.2
The interest rate charged on the facility is US LIBOR + 3 per cent. The average interest rate charged in the period was 5.78 per cent  
(2007: 7.05 per cent).
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Aero Inventory plc 2008 47 
20. Operating lease commitments
The Group has entered into commercial leases on certain properties, motor vehicles and items of machinery. These leases have an average 
duration of between three and ten years. Only the property lease agreements contain an option for renewal, with such options being 
exercisable three months before the expiry of the lease term at rentals based on market prices at the time of exercise. There are no 
restrictions placed upon the lessee by entering into these leases.
Future minimum rentals payable under non-cancellable operating leases are as follows:
       2008 2007 
       $’millions $’millions
Within one year       1.7 0.9
Two to five years       2.7 1.6
More than five years       – –
       4.4 2.5
During the period, $1.1 million was recognised as a lease expense (2007: $1.1 million).
21. Financial instruments
The Group’s financial instruments as at 30 June 2008 comprise cash, bank overdraft and bank loans at the rate of 3 per cent above the 
United States LIBOR. The main purpose of these financial instruments is the funding of the Group’s activities. It has been the Group’s policy 
throughout the period under review that no trading in financial instruments shall be undertaken.
Liquidity risk
Group policy is to maintain available credit facilities to meet its anticipated requirements over at least a two to three year period. The facility, 
which is available until February 2013, may be drawn in advances which revolve over periods of 1, 3, 6, 9 or 12 months. The Group has a 
revolving credit facility as at 30 June 2008 of $500 million (2007: $170.68 million).
Foreign currency risk
The Group undertakes certain transactions such as a small proportion of borrowings and dividend payment denominated in Sterling rather 
than US Dollars, which is its functional currency. The Group has not hedged these transactions and therefore is exposed to a degree of risk 
in respect of changes in the Sterling/Dollar exchange rate.
The following table demonstrates the sensitivity to a reasonably possible change in Sterling against the US Dollar exchange rate with all  
other variables held constant, of the Group’s profit before tax (due to changes in the fair value of monetary assets, liabilities and forward 
currency contracts).
       Increase/ Effect 
       decrease on profit 
       in Sterling vs before tax 
       US Dollar $’millions
2008
Sterling       +10% –
       –10% –
2007
Sterling       +10% 5.5
       –10% (5.5)
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48 Aero Inventory plc 2008 
Notes to the consolidated financial statements continued
at 30 June 2008
21. Financial Instruments continued
Interest rate risk
The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant, of the 
Group’s profit before tax (through the impact on floating rate borrowings). There is no impact on the Group’s equity.
The sensitivity analysis includes all non-derivative floating rate financial instruments.
        Effect 
       Increase/ on profit 
       decrease in before tax 
       basis points $’millions
2008
Borrowings       +50 (0.6)
       –50 0.6
2007
Borrowings       +50 0.6
       –50 (0.6)
Credit risk
There are no significant concentrations of credit risk within the Group unless otherwise disclosed. The maximum credit risk exposure relating 
to financial assets is represented by carrying value as at the balance sheet date.
The Group has established procedures to minimise the risk of default by trade debtors including detailed credit checks undertaken before a 
customer is accepted. Historically, these procedures have proved effective in minimising the level of impaired and past due debtors.
22. Share-based payment
The Company provides benefits to employees (including directors) of the Company in the form of share-based payment transactions (share 
options), whereby employees render services in exchange for rights over shares (‘equity-settled transactions’). The fair value of the employee 
services rendered is determined by reference to the fair value of the options granted.
All share options are valued using an appropriate option-pricing model such as Black-Scholes. This fair value is charged to the profit and loss 
account over the vesting period of the share-based payment scheme, with the corresponding increase in equity. The value of the charge is 
adjusted in the profit and loss account over the remainder of the vesting period to reflect expected and actual levels of options vesting, with 
the corresponding adjustment made in equity.
The Group has recognised a total expense of $1.3 million relating to equity settled share option scheme transactions in the year ended  
30 June 2008 ($0.9 million in the year ended to 30 June 2007).
Details of the share options outstanding during the year are as follows:
     2008 2008 2007 2007 
      Weighted  Weighted 
     Number of average Number of average 
     share exercise share exercise 
     options price (£) options price (£)
Outstanding at beginning of period     3,269,148 3.31 2,092,928 3.13
Granted during the year     7,156,831 2.29 1,443,554 3.56
Lapsed during the year     (219,184) 4.77 (99,094) 3.49
Exercised during the year     (273,083) 3.33 (168,240) 2.99
Outstanding at the end of the year     9,933,172 2.63 3,269,148 3.31
Exercisable at the end of the year     1,076,630 2.69 1,229,864 2.73
The weighted average share price at the date of exercise for share options during the period was £3.33 (2007: £2.99). The options 
outstanding at 30 June 2008 had a weighted average exercise price of £2.63 (2007: £3.31), and a weighted average remaining contractual  
life of 3.3 years (2007: 2.2 years). In 2008, options were granted on 19 October 2007, 15 November 2007, 19 December 2007, 28 April 2008, 
7 May 2008 and 9 May 2008 (2007: 16 November 2006, 23 April 2007 and 30 April 2007). The aggregate of the estimated fair value of the 
options granted on those dates is £3.6 million (2007: £5.1 million).
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Aero Inventory plc 2008 49 
22. Share based payment continued
The inputs into the Black-Scholes option pricing model are as follows:
       2008 2007
Weighted average share price       £5.70 £3.31
Weighted average exercise price       £2.74 £2.99
Expected volatility       25% 25%
Expected life       5 years 5 years
Risk-free rate       4.6% 4.6%
Dividend yield       2.9% 2.9%
Expected volatility was determined by an estimation based on similar AIM listed companies. The expected life used in the model has been 
adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.
Share options have been granted and are still outstanding under the Aero Inventory plc Share Option Scheme, the Aero Inventory plc 
Unapproved Share Option Scheme, Aero Inventory plc Enterprise Management Incentive Scheme and the Aero Inventory plc Savings-
Related Share Option Scheme as follows:
Aero Inventory plc Share Option Scheme
This approved share incentive scheme was introduced when the Company’s shares were listed on the Alternative Investment Market in 2000. 
At 30 June 2008, the following options had been granted and were still outstanding under this scheme:-
       Number Exercise 
       of share price 
Date of grant       options (pence)
24 September 2001       7,516 148.9
1 April 2004       20,452 293.0
29 April 2004       10,020 305.0
22 October 2004       40,716 249.0
15 April 2005       2,534 275.0
29 April 2005       28,422 283.0
14 October 2005       8,259 363.0
28 April 2006       74,250 414.0
16 November 2006       73,355 347.0
23 April 2007       83,296 370.0
19 October 2007       10,301 565.0
28 April 2008       14,123 590.0
Total       373,244
These options are exercisable between three and ten years from the date of the grant. During the year ended 30 June 2008 32,487 options 
lapsed (2007: 68,426).
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50 Aero Inventory plc 2008 
Notes to the consolidated financial statements continued
at 30 June 2008
22. Share based payment continued
Aero Inventory plc Unapproved Share Option Scheme
At 30 June 2008, the following options had been granted and were still outstanding under this scheme:
       Number Exercise 
       of share price 
Date of grant       options (pence)
27 November 2002       34,799 359.0
10 October 2003       29,133 379.0
29 October 2003       3,760 343.0
1 April 2004       47,724 293.0
29 April 2004       1,252 305.0
22 October 2004       641,431 249.0
15 April 2005       106,721 275.0
29 April 2005       1,252 283.0
14 October 2005       97,608 363.0
4 November 2005       134,656 363.0
28 April 2006       21,057 414.0
16 November 2006       679,064 347.0
23 April 2007       90,449 370.0
19 October 2007       192,642 565.0
28 April 2007       51,711 590.0
Total       2,133,259
These options are exercisable between three and ten years from the date of the grant. During the year 166,515 (2007: 16,578) options lapsed.
Aero Inventory plc Unapproved Share Option Scheme – Executive Option Plan
This unapproved Share Option Scheme was approved by shareholders in 2005 and the first grant of shares was made in May 2006.  
At 30 June 2008, the following options had been granted and were still outstanding under this scheme:
       Number Exercise 
       of share price 
Date of grant       options (pence)
1 May 2006       188,906 410.3
23 April 2007       313,695 370.0
Total       502,601
These options are exercisable between three and ten years from the date of the grant subject to the achievement of targets.
The target for the award made on 1 May 2006 is to achieve earnings (as defined in the rules of the Plan) of 65 pence per share for the 
financial year ending on 30 June 2008. In the event that earnings per share are greater than 50 pence but less than 65 pence, partial vesting 
will occur on a stepped scale.
The target for the award made on 23 April 2007 is to achieve earnings (as defined in the rules of the Plan) of 80 pence per share for the 
financial year ending on 30 June 2009. In the event that earnings per share are greater than 60 pence but less than 80 pence, partial vesting 
will occur on a stepped scale.
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Aero Inventory plc 2008 51 
22. Share based payment continued
Aero Inventory plc Enterprise Management Incentive Scheme
At 30 June 2008, the following options had been granted and were still outstanding under this scheme. Following the rights issue carried out 
by the Company in March 2006, on 16 November 2006 the terms of the options were varied as required by the Rules of Aero Inventory plc 
Share Option Scheme using the methodology prescribed by HM Revenue and Customs. No further grants will be made under this Scheme.
 
       Number Exercise 
       of share price 
Date of grant       options (pence)
9 April 2002       4,258 322.0
26 April 2002       32,123 311.0
30 April 2003       23,801 287.0
10 October 2003       40,716 379.0
Total       100,898
These options are exercisable between three and ten years from the date of the grant. During the year nil (2007: 12,997) options lapsed.
Aero Inventory plc Savings-Related Share Option Scheme
This approved Savings-Related Share Option Scheme was approved by shareholders in 2005 and the first grant of shares was made in April 
2006. At 30 June 2008, the following options had been granted and were still outstanding under this scheme:
       Number Exercise 
       of share price 
Date of grant       options (pence)
28 April 2006       8,307 376.0
30 April 2007       46,073 333.5
9 May 2008       29,473 513.0
Total       83,853
These options are exercisable upon the maturity of three or five year approved savings contracts. During the year 5,088 (2007: 1,093)  
options lapsed.
Aero Inventory plc Long Term Incentive Plan
The proposal to introduce a Long Term Incentive Plan was approved by Aero Inventory plc’s shareholders at an Extraordinary General 
Meeting held on 3 December 2007. At 30 June 2008, the following options had been granted and were still outstanding under this scheme:
 
       Number Exercise 
       of share price 
Date of grant       options (pence)
19 December 2007       3,345,780 1.25
7 May 2008       1,394,077 1.25
       4,739,857
Other share option plans
Subject to the revenues from business with ACTS amounting to $250 million or more in the third full year of the contract, the Company has 
granted an option to ACTS over 2 million shares at a price of 588 pence per share exercisable at any time during the fourth, fifth or sixth years 
of the contract.
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52 Aero Inventory plc 2008 
Notes to the consolidated financial statements continued
at 30 June 2008
23. Share capital
       2008 2007 
       $’millions $’millions
Authorised
80,000,000 ordinary shares of 1.25 pence       1.7 1.7
Issued and fully paid
47,626,804 ordinary shares of 1.25 pence each (2007: 47,353,721 ordinary shares of 1.25 pence each)   1.0 1.0
        Nominal 
       Number Value 
       of shares $’millions
As at 1 July 2007       47,353,721 1.0
Shares issued during the year       273,083 –
As at 30 June 2008       47,626,804 1.0
During the year ended 30 June 2008 55,421 shares, nominal value £693 (2007: 45,863 shares, nominal value £573) were issued and allotted 
as a result of the exercise of options under the Aero Inventory plc Share Option Scheme. 174,400 shares, nominal value £2,180 (2007: 44,521 
shares, nominal value £557) were issued and allotted as a result of the exercise of options under the Aero Inventory plc Unapproved Share 
Option Scheme. 43,262 shares, nominal value £540 (2007: 77,856 shares, nominal value £973) were issued and allotted as a result of the 
exercise of options under the Aero Inventory plc Enterprise Management Incentive Scheme. The aggregate subscriptions payable for these 
shares were £184,023, £570,445, £154,498 respectively (2007: £235,914, £128,190 and £165,544 respectively).
24. Reserves
     Share Share based 
     premium payment Retained 
     account reserve earnings Total 
     $’millions $’millions $’millions $’millions
At 1 July 2006     209.2 1.1 19.9 230.2
Profit for the financial period     – – 31.1 31.1
Dividends paid     – – (10.5) (10.5)
Share-based payments     – 0.9 – 0.9
Shares issued     1.1 – – 1.1
At 30 June 2007 and 1 July 2007     210.3 2.0 40.5 252.8
Profit for the financial period     – – 51.6 51.6
Dividends paid     – – (15.7) (15.7)
Share-based payments     – 1.3 – 1.3
Shares issued     1.8 – – 1.8
Taxation on share-based payments     – – 1.4 1.4
At 30 June 2008     212.1 3.3 77.8 293.2
25. Reconciliation of movements in shareholders’ funds
       2008 2007 
       $’millions $’millions
Profit for the year       51.6 31.1
Dividends       (15.7) (10.5)
       35.9 20.6
New shares issued       1.8 1.1
Share-based payments       1.3 0.9
Taxation on share-based payments       1.4 –
Net addition to shareholders’ funds       40.4 22.6
Opening shareholders’ funds       253.8 231.2
Closing shareholders’ funds       294.2 253.8
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Aero Inventory plc 2008 53 
26. Related party transactions
During the year the Group entered into transactions, in the ordinary course of business, with other related parties. Transactions entered into, 
and trading balances outstanding at 30 June, are as follows:
Rupert Lewin Racing Limited (of which P R Lewin is a director and shareholder) entered into a licence agreement with Aero Inventory (UK) 
Limited on 1 December 2002 in respect of the use of the warehouse space as licensee at Unit A, Lancaster Road Industrial Estate, New 
Barnet, Hertfordshire, for the storage and repair of private motor vehicles. During the period of the licence Rupert Lewin Racing Limited 
agreed to pay Aero Inventory (UK) Limited a fee of £1,000 per month (inclusive of VAT).
$nil (2007: $150,000) was paid to Rupert Lewin Racing Limited during the year in respect of corporate entertainment provided to Aero 
Inventory’s guests.
Mr Turner’s services as a non-executive director are provided via Potenza Enterprises Limited, a service company owned by Mr Turner 
and his family. As well as acting as a non-executive director of the Company, Mr Turner also provides consultancy services in relation to 
the strategic direction and market development of the Company. During the period, $nil (2007: $78,000) was paid to Potenza Enterprises 
Limited in respect of such consultancy services. No amounts are outstanding at 30 June 2008 (2007: $nil).
27. Explanation of transition to IFRS
IFRS 1, First time adoption of International Financial Reporting Standards, sets out the procedures that the Group must follow as it adopts 
IFRS for the first time as the basis for preparing its consolidated financial statements. The Group is required to establish its accounting 
policies at 30 June 2008 and, in general, apply these retrospectively to determine the IFRS opening balance sheet as its date of transition,  
1 July 2006.
Key changes in accounting policies:
a) The effects of changes in foreign exchange rates
The guidance for the determination of the Group’s functional currency is more prescriptive under IAS 21, The effect of changes in foreign 
exchange rates. Under IAS 21 the primary indicators of a functional currency are determined by the currency that mainly influences revenue 
prices where it is often the currency that the revenue prices are denominated in and settled in, and the currency in which the costs of 
providing goods and services are denominated and settled. Accordingly, as the Group predominately trades in US Dollars, it has changed 
functional and presentational currency under IFRS retrospectively at 1 July 2006 from Sterling to US Dollars.
b) Intangible assets
Under UK GAAP, software assets were included as part of the cost of property, plant and equipment whereas under IFRS, unless they are 
integral to another fixed asset, they are classified as intangible assets. In the balance sheet, a reclassification of $11,864,000 from property, 
plant and equipment to intangible assets was reflected under IFRS at 30 June 2007 (1 July 2006: $755,000). There was no impact on either 
profit before taxation or total net assets under IFRS.
c) Other – Employee benefits
Under IAS 19 there is a requirement to recognise the monetary value of employee benefits accruing to employees but not yet settled; typically 
holiday pay. This required the present value of employee benefits to be paid in future for services to be provided up to the reporting date.
Employee’s holiday entitlement is aligned to the calendar year. Accordingly a holiday accrual has been recognised of $212,000 as at  
31 December 2007 (1 July 2006: $242,000). The impact on the income statement is an increase in profit before tax of $62,000 for the year to 
30 June 2007.
•
•
•
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54 Aero Inventory plc 2008 
Notes to the consolidated financial statements continued
at 30 June 2008
27. Explanation of transition to IFRS continued
Reconciliation of equity at 1 July 2006 (date of transition to IFRSs)
       Other IFRS 
    UK GAAP Functional Sub total adjustments IFRS 
    £’millions currency $’millions $’millions $’millions
Assets
Non-current assets
Intangible assets    – – – 0.7 0.7
Property, plant and equipment    1.6 1.2 2.8 (0.7) 2.1
    1.6 1.2 2.8 – 2.8
Current assets
Inventories    103.8 70.8 174.6 – 174.6
Trade and other receivables    25.2 20.6 45.8 – 45.8
Cash at bank and at hand    36.3 29.7 66.0 – 66.0
Total assets    166.9 122.3 289.2 – 289.2
Liabilities
Current liabilities
Trade and other payables    (31.8) (26.0) (57.8) (0.2) (58.0)
Non-current liabilities
Bank loan    – – – – –
Total liabilities    (31.8) (26.0) (57.8) (0.2) (58.0)
Net assets    135.1 96.3 231.4 (0.2) 231.2
Equity
Share capital    0.6 0.4 1.0 – 1.0
Share premium account    123.5 85.7 209.2 – 209.2
Share based payment reserve    0.6 0.5 1.1 – 1.1
Retained earnings    10.4 9.7 20.1 (0.2) 19.9
Total equity    135.1 96.3 231.4 (0.2) 231.2
Reconciliation of profit for year ended 30 June 2007
       Other IFRS 
    UK GAAP Functional Sub total adjustments IFRS 
    £’millions currency $’millions $’millions $’millions
Revenue:    127.8 119.2 247.0 – 247.0
Operating expenses    (97.3) (96.8) (194.1) – (194.1)
Operating profit    30.5 22.4 52.9 – 52.9
Interest receivable    0.4 0.4 0.8 – 0.8
Interest payable    (4.2) (3.9) (8.1) – (8.1)
Profit before tax    26.7 18.9 45.6 – 45.6
Tax    (8.2) (6.3) (14.5) – (14.5)
Profit for year    18.5 12.6 31.1 – 31.1
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Aero Inventory plc 2008 55 
27. Explanation of transition to IFRS continued
Reconciliation of balance sheet at 30 June 2007 (date of last UK GAAP financial statements)
       Other IFRS 
    UK GAAP Functional Sub total adjustments IFRS 
    £’millions currency $’millions $’millions $’millions
Assets
Non current assets
Intangible assets    13.3 11.2 24.5 13.0 37.5
Property, plant and equipment    8.1 7.4 15.5 (13.0) 2.5
    21.4 18.6 40.0 – 40.0
Current assets
Inventories    216.0 174.9 390.9 – 390.9
Trade and other receivables    26.2 26.4 52.6 – 52.6
Cash at bank and at hand    0.2 0.2 0.4 – 0.4
Total assets    263.8 220.1 483.9 – 483.9
Liabilities
Current liabilities
Trade and other payables    (58.6) (59.1) (117.7) (0.2) (117.9)
Non-current liabilities
Bank loan    (55.9) (56.3) (112.2) – (112.2)
Total liabilities    (114.5) (115.4) (229.9) (0.2) (230.1)
Net assets    149.3 104.7 254.0 (0.2) 253.8
Equity
Share capital    0.6 0.4 1.0 – 1.0
Share premium account    124.0 86.3 210.3 – 210.3
Share based payment reserve    1.0 1.0 2.0 – 2.0
Retained earnings    23.7 17.0 40.5 (0.2) 40.7
Total equity    149.3 104.7 254.0 (0.2) 253.8
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56 Aero Inventory plc 2008 
Notes to the consolidated financial statements continued
at 30 June 2008
28. Company financial statements
Company balance sheet
at 30 June 2008
       2008 2007 
      Notes £’000 £’000
Non-current assets
Investments      B 83 83
       83 83
Current assets
Debtors – due after one year      C 128,404 132,579
Net current assets       128,404 132,579
Net assets       128,487 132,662
Equity
Share capital      D 595 592
Share premium account      E 124,925 124,020
Share based payment reserve      E 1,701 1,043
Retained earnings      E 1,266 7,007
Total equity       128,487 132,662
The accounts were approved by the Board on 22 September 2008 and signed on its behalf:
Rupert Lewin
Chief Executive
Hugh Bevan
Finance Director
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Aero Inventory plc 2008 57 
28. Company financial statements continued
A. Significant accounting policies
The separate financial statements of the Company are presented as required by the Companies Act 1985. As permitted by the Act, the 
separate financial statements have been prepared in accordance with International Financial Reporting Standards.
The financial statements have been prepared on the historical cost basis. The principal accounting policies adopted are the same as those 
set out in note 2 to the consolidated financial statements except as noted below:
Investment in subsidiaries are stated at cost less, where appropriate, provision for impairment.
A cash flow statement has not been presented as the Company has no cash transactions.
The directors have taken advantage of the exemption available under section 230 of the Companies Act 1985 and have not presented a profit 
and loss account for the Company.
B. Investments
       2008 2007 
       £’000 £’000
Cost and net book value       83 83
The Company owns the entire issued ordinary share capital of Aero Inventory (UK) Limited, a company principally engaged in procurement 
and inventory management for the aerospace industry. Aero Inventory (UK) Limited is registered in England and Wales.
Aero Inventory (UK) Limited owns the entire issued ordinary share capital of Aero Inventory (Hong Kong) Limited, Aero Inventory (Switzerland) 
AG, Aero Inventory (Australia) Pty Limited, Aero Inventory (USA) Inc., Aero Inventory (Canada) Inc. and Aero Inventory (Japan) KK and Aero 
Inventory (USA) Inc. owns the entire issued ordinary share capital of Aero Inventory (Bahrain) SPC.
All companies are principally engaged in customer support activities for procurement and inventory management services for the  
aerospace industry.
The companies are incorporated in the following countries:
Aero Inventory (Hong Kong) Limited – Hong Kong
Aero Inventory (Switzerland) AG – Switzerland
Aero Inventory (Australia) Pty Limited – Australia
Aero Inventory (USA) Inc. – USA
Aero Inventory (Canada) Inc – Canada
Aero Inventory Japan KK – Japan
Aero Inventory (Bahrain) SPC – Bahrain
C. Debtors – due after more than one year
       2008 2007 
       £’000 £’000
Amounts owed by Group undertakings       128,404 132,579
•
•
•
•
•
•
•
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Our Business Our Markets Our Strategy
28. Company financial statements continued
D. Share capital
       2008 2007 
       £’000 £’000
Authorised
80,000,000 ordinary shares of 1.25 pence       1,000 1,000
Issued and fully paid
47,626,804 ordinary shares of 1.25 pence each (2007: 47,353,721 ordinary shares of 1.25 pence each)   595 592
        Nominal 
       Number Value 
       of shares £’000
As at 1 July 2007       47,353,721 592
Shares issued during the year       273,083 3
As at 30 June 2008       47,626,804 595
During the year ended 30 June 2008 55,421 shares, nominal value £693 (2007: 45,863 shares, nominal value £573) were issued and allotted 
as a result of the exercise of options under the Aero Inventory plc Share Option Scheme. 174,400 shares, nominal value £2,180 (2007: 44,521 
shares, nominal value £557) were issued and allotted as a result of the exercise of options under and the Aero Inventory plc Unapproved 
Share Option Scheme. 43,262 shares, nominal value £540 (2007: 77,856 shares, nominal value £973) were issued and allotted as a result of 
the exercise of options under the Aero Inventory plc Enterprise Management Incentive Scheme. The aggregate subscriptions payable for 
these shares were £184,023, £570,445, £154,498 respectively (2007: £235,914, £128,190 and £165,544 respectively).
E. Reserves
    Share Share Share-based 
    capital premium payment Retained 
    account account reserve earnings Total 
    £’000 £’000 £’000 £’millions £’millions
At 1 July 2006    589 123,492 609 5,295 129,985
Profit for the financial period    – – – 7,000 7,000
Dividends paid    – – – (5,288) (5,288)
Share based payments    – – 434 – 434
Shares issued    3 528 – – 531
At 30 June 2007 and 1 July 2007    592 124,020 1,043 7,007 132,662
Profit for the financial period    – – – 2,195 2,195
Dividends paid    – – – (7,936) (7,936)
Share based payments    – – 658 – 658
Shares issued    3 905 – – 908
At 30 June 2008    595 124,925 1,701 1,266 128,487
Notes to the consolidated financial statements continued
at 30 June 2008
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Aero Inventory plc 2008 59 
Shareholder Information
Notice of Annual General Meeting
Notice is hereby given that the Annual General Meeting of Aero Inventory plc (‘the Company’) will be held at  
The Royal Aeronautical Society, 4 Hamilton Place, London W1J 7BQ on Monday 24th November 2008 at 11.00am  
for the following purposes.
To consider and, if thought fit, pass the following resolutions, of which resolutions 1 to 10 and 13 will be proposed as ordinary resolutions and 
resolutions 11 and 12 will be proposed as special resolutions.  
Ordinary business
1.  To receive and adopt the Company’s annual accounts for the period ended 30 June 2008 and the reports of the directors and auditors on 
those accounts.
2.  To declare a final dividend in respect of the year ended 30 June 2008 at the rate of 12 pence (net) per ordinary share to be paid on 11 
December 2008 to shareholders on the register at the close of business on 14 November 2008.
3.  To re-elect P R Lewin who retires by rotation.
4. To re-elect H N P McCorkell who retires by rotation.
5. To re-elect C L Trupp who retires by rotation.
6. To re-appoint Deloitte & Touche LLP as auditors of the Company and to authorise the directors to agree their remuneration.
Special business
7. That the adoption of a global savings related share option plan (‘the Global Plan’) for the benefit of the Company’s personnel in overseas 
jurisdictions, the principal terms of which are summarised in Appendix 1 to this Notice, be hereby approved and that the directors be 
authorised to do all acts and things which they consider or expedient to establish and carry the Global Plan into effect including making 
any changes which they consider appropriate, without further approval of the Company in general meeting, to take account of or mitigate 
or comply with taxation, securities or exchange control laws or to improve the tax and/or social security position of any of the personnel 
eligible to participate, provided that any such arrangements which are established for overseas participants will not be materially more 
favourable to such participants than the Company’s UK savings related share option scheme.
8. That the rules of the Aero Inventory plc Unapproved Share Option Scheme (‘the Unapproved Scheme’) be amended by the insertion of the 
following rule 11.2A after rule 11.2;
11.2A  Without limitation to the above, the Committee shall have power from time to time to adopt any amendments necessary including 
any sub-plan or addendum to the Plan which it considers fit, without the prior approval of the Company in general meeting to:  
(i) conform its terms with the requirements of each jurisdiction where an Eligible Employee is located; or (ii) take account of or 
mitigate or comply with taxation, securities or exchange control laws; or (iii) improve the tax and/social security position of the 
Company or any other Participating Company or of any Eligible Employee. No such arrangements established for overseas Eligible 
Employees will be materially more favourable to such participants than the terms of options granted to UK Eligible Employees.  
9. That the directors be hereby authorised to grant options to non-employees providing services to the Company in overseas jurisdictions 
under the terms of the Aero Inventory plc Unapproved Share Option Scheme (‘the Unapproved Scheme’) and/or the terms of the Aero 
Inventory plc Long Term Incentive Plan (‘the LTIP’) and to take all steps which they consider necessary or expedient including the creation 
of any sub-plan or addendum to the Unapproved Scheme or the LTIP without further approval of the Company in general meeting to make 
such grants and to: (i) conform their terms with the requirements of each jurisdiction where a participant is located; or (ii) take account of 
or mitigate or comply with taxation, securities or exchange control laws; or (iii) improve the tax and/or social security position of the 
Company or any other group company or of any of the non-employees eligible to participate, provided that any such arrangements which 
are established for non-employees will not be materially more favourable to such participants than to those granted to Eligible Employees 
under the Unapproved Scheme or the LTIP.
10. That in substitution for any existing authorities:
(a) in accordance with Section 80 of the Companies Act 1985 (‘the Act’), the directors be and generally are unconditionally authorised to 
exercise all the powers of the Company to allot relevant securities (as defined in section 80(2) of the Act) within the terms of the 
following restrictions and provisions, namely:
 (i)  this authority shall expire (unless previously renewed, revoked or varied) on the earlier of the date of the next Annual General 
Meeting of the Company following the date of the passing of this resolution and the date which is 15 months after the date of the 
passing of this resolution; and
 (ii)  this authority shall be limited to the allotment of relevant securities up to an aggregate nominal amount of £198,445.01; and
(b)  for the purpose of sub-paragraph 10 (a) above:
(i) the said power shall allow and enable the directors to make an offer or agreement which would or might require relevant securities 
to be allotted after such expiry of the authority and the directors may allot relevant securities in pursuance of such an offer or 
agreement as if the power conferred by this resolution had not expired; and
(ii) words and expressions defined in or for the purposes of Part IV of the Act shall bear the same meaning in this resolution.
11. That in substitution for any existing authorities:
(a)  conditionally upon the passing of resolution 10 above and in accordance with section 95 of the Act, the directors be and are hereby 
given power to allot equity securities pursuant to the authority conferred by resolution 10 above as if section 89(1) of the Act did not 
apply to any such allotment provided that the power granted by this resolution shall be limited to:
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Our Strategy Our Business Our Markets
 (i)  the allotment of equity securities in connection with or pursuant to an offer by way of rights to the holders of shares in the Company 
and other persons entitled to participate in such offer, in the proportion (as nearly may be) to the existing shareholdings of such 
members (or, as appropriate, to the number of shares which such other persons are for these purposes deemed to hold) subject only 
to such exclusions or other arrangements as the directors may feel necessary or expedient to deal with fractional entitlements or the 
regulations of any recognised regulatory body in any territory;
 (ii)  the grant of options to subscribe for shares in the Company under the terms of any share option schemes adopted or operated by 
the Company up to a maximum aggregate nominal amount equal to 10 per cent of the nominal amount of the issued share capital of 
the Company as at the date of grant of such option(s), and the allotment of such shares pursuant to the exercise of options granted; 
 (iii)  the grant of up to 1,394,077 options to subscribe for shares in the Company under the terms of the Aero Inventory plc Long Term 
Incentive Plan and the allotment of such shares pursuant to the exercise of options granted; and
 (iv) the allotment of equity securities, otherwise than pursuant to sub-paragraphs 11(a)(i), 11(a)(ii) and 11(a)(iii) above, up to an aggregate 
nominal amount of £59,533.50;
(b)  the power granted by this resolution shall expire on the earlier of the date of the next Annual General Meeting of the Company following 
the date of the passing of this resolution and the date which is 15 months after the date of the passing of this resolution, save that the 
said power shall allow and enable the directors before this power expires or is replaced, to make an offer or agreement which would or 
might require equity securities to be allotted pursuant to such offer or agreement as if the power conferred by this resolution had not 
expired, or, as the case may be, been replaced. This power applies in relation to a sale of shares which is an allotment of equity 
securities by virtue of section 94(3A) of the Act as if in the first paragraph of this resolution the words ‘That, conditionally upon the 
passing of resolution 10 above’, were omitted; and
(c) words and expressions defined in or for the purposes of Part IV of the Act shall bear the same meanings in this resolution.
12.  That the articles of association contained in the document produced to the meeting (and signed by the Chairman for the purposes of 
identification), as summarised in the explanatory notes and Appendix 2 to this Notice, be adopted as the articles of association of the 
Company in substitution for, and to the exclusion of, the existing articles of association of the Company.   
13.  That, without prejudice to article 35 of the Company’s articles of association which authorise the Company to use electronic 
communications, the Company be and is hereby authorised (subject to the provisions of the Companies Act 2006 and the Disclosure and 
Transparency Rules made by the Financial Services Authority (‘the DTR’)) to use electronic means to convey any notice, document or 
information to shareholders or debt securities holders. For the purposes of this resolution, the terms ‘electronic means’, ‘shareholders’ 
and ‘debt securities holders’ shall bear the respective meanings applicable under the DTR. 
By order of the Board
Martin Webster 
Secretary
Registered office
30 Lancaster Road
New Barnet
Hertfordshire EN4 8AP
22 September 2008
 
Notes
1. Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, the Company specifies that only those shareholders 
registered in the register of members of the Company at 11.00 am on 22 November 2008 shall be entitled to attend or vote at the Annual 
General Meeting in respect of the number of shares registered in their respective names at that time. Changes to entries on the register of 
members after that time will be disregarded in determining the rights of any person to attend or vote at the meeting.
2. If you are a member of the Company at the time set out in note 1 above, you are entitled to appoint a proxy to exercise all or any of your 
rights to attend, speak and vote at the Meeting and you should have received a proxy form with this Notice of Meeting. You can only appoint 
a proxy using the procedures set out in these notes and the notes to the proxy form.
3 . If you are not a member of the Company but you have been nominated by a member of the Company to enjoy information rights, you do 
not have a right to appoint any proxies under the procedures set out in these notes. Please read section 11 below.
4. A proxy does not need to be a member of the Company but must attend the Meeting to represent you. Details of how to appoint the 
Chairman of the Meeting or another person as your proxy using the proxy form are set out in the notes to the proxy form. If you wish your 
proxy to speak on your behalf at the Meeting you will need to appoint your own choice of proxy (not the Chairman) and give your instructions 
directly to them.
5. You may appoint more than one proxy provided each proxy is appointed to exercise rights attached to different shares. You may not 
appoint more than one proxy to exercise rights attached to any one share. To appoint more than one proxy, please contact Capita Registrars, 
Proxy Dept., The Registrar, 34 Beckenham Road, Beckenham, Kent BR3 4TU.
Notice of Annual General Meeting continued
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 61 
Our Performance Governance Shareholder Information
6. A vote withheld is not a vote in law, which means that the vote will not be counted in the calculation of votes for or against the resolution.  
If no voting indication is given, your proxy will vote or abstain from voting at his or her discretion. Your proxy will vote (or abstain from voting) 
as he or she thinks fit in relation to any other matter which is put before the Meeting.
7. The notes to the proxy form explain how to direct your proxy how to vote on each resolution or withhold their vote.
To appoint a proxy using the proxy form, the form must be:
completed and signed;
sent or delivered to Capita Registrars, Proxy Dept., The Registrar, 34 Beckenham Road, Beckenham, Kent BR3 4TU; and
received by Capita Registrars no later than 11.00 am on 22 November 2008.
In the case of a member which is a company, the proxy form must be executed under its common seal or signed on its behalf by an officer of 
the company or an attorney for the company.
Any power of attorney or any other authority under which the proxy form is signed (or a duly certified copy of such power or authority) must 
be included with the proxy form.
8. In the case of joint holders, where more than one of the joint holders purports to appoint a proxy, only the appointment submitted by the 
most senior holder will be accepted. Seniority is determined by the order in which the names of the joint holders appear in the Company’s 
register of members in respect of the joint holding (the first-named being the most senior).
9. To change your proxy instructions simply submit a new proxy appointment using the methods set out above. Note that the cut-off time for 
receipt of proxy appointments (see above) also applies in relation to amended instructions; any amended proxy appointment received after 
the relevant cut-off time will be disregarded. Replacement proxy forms can be obtained from the Company Secretary.
If you submit more than one valid proxy appointment, the appointment received last before the latest time for the receipt of proxies will take 
precedence.
10. In order to revoke a proxy instruction you will need to inform the Company as follows:
By sending a signed hard copy notice clearly stating your intention to revoke your proxy appointment to Capita Registrars, Proxy Dept., 
The Registrar, 34 Beckenham Road, Beckenham, Kent BR3 4TU.
In the case of a member which is a company, the revocation notice must be executed under its common seal or signed on its behalf by an 
officer of the company or an attorney for the company. Any power of attorney or any other authority under which the revocation notice is 
signed (or a duly certified copy of such power or authority) must be included with the revocation notice.
The revocation notice must be received by Capita Registrars no later than 11.00 am on 22 November 2008.
If you attempt to revoke your proxy appointment but the revocation is received after the time specified then, subject to the paragraph directly 
below, your proxy appointment will remain valid.
Appointment of a proxy does not preclude you from attending the Meeting and voting in person. If you have appointed a proxy and attend the 
Meeting in person, your proxy appointment will automatically be terminated.
11. If you are a person who has been nominated under section 146 of the Companies Act 2006 to enjoy information rights you may have a 
right under an agreement between you and the member of the Company who has nominated you to have information rights (Relevant 
Member) to be appointed or to have someone else appointed as a proxy for the Meeting. If you either do not have such a right or if you have 
such a right but do not wish to exercise it, you may have a right under an agreement between you and the Relevant Member to give 
instructions to the Relevant Member as to the exercise of voting rights.
12. Copies of the service contracts and letters of appointment of the directors of the Company will be available:
for at least 15 minutes prior to the Meeting; and 
during the Meeting.
 
Explanatory notes
Resolution 1: Report and accounts
This is a standard resolution common to all Annual General Meetings.
Resolution 2: Dividend
This is a standard resolution to declare the final dividend.
Resolutions 3, 4 & 5: Re-election of directors
Messrs Lewin, McCorkell and Trupp will retire by rotation and being eligible will stand for re-election by the shareholders.
Resolution 6: Appointment of auditors
Company law requires Aero Inventory plc, at each general meeting at which accounts are laid, to appoint auditors who will remain in office 
until the next general meeting at which accounts are laid. This resolution will, therefore, re-appoint Deloitte & Touche LLP as auditors of  
Aero Inventory plc and authorise the directors to agree their remuneration.
•
•
•
•
•
•
•
Back to contents Next page Previous page Back to contents Next page Previous page 62 Aero Inventory plc 2008 
Our Strategy Our Business Our Markets
Resolution 7: Aero Inventory plc Global Savings-Related Share Option Plan (‘the Plan’)
It is proposed to implement a Global Savings-Related Share Option Plan, open to all eligible employees outside the UK. The Company 
already successfully operates a Revenue approved scheme of this kind for UK employees. As outlined in the Annual Report, more than  
50 per cent of the Group’s employees are now located outside the UK. The Remuneration Committee believes that the Scheme will form  
a useful addition to the rewards package offered by Aero Inventory and will generate greater alignment between the interests of employees 
and shareholders. The principal terms of the Scheme are summarised in Appendix 1 to this notice. 
Resolution 8: Aero Inventory plc Unapproved Share Option Scheme (‘the Unapproved Scheme’)
The Aero Inventory plc Unapproved Share Option Scheme allows options to be granted to employees anywhere in the world. Some 
jurisdictions have local reporting and compliance requirements and also provide tax/social security efficient opportunities to encourage the 
grant of options. The proposed change to the Unapproved Scheme rules allows the establishment of sub-plans or arrangements to support 
compliance and to allow the utilisation of local tax/social security mitigation opportunities where it is sensible so to do.
Resolution 9: Aero Inventory plc Unapproved Share Option Scheme (‘the Unapproved Scheme’) and the Aero Inventory plc  
Long Term Incentive Plan (‘the LTIP’)
Some of Aero Inventory’s contracts with non-UK customers provide for staff previously working for the customer to become ‘sub-vented’ to 
Aero Inventory and work on behalf of the Company as part of the on-site customer support. Some such personnel (less than 10 per cent of 
overall headcount), whilst legally employed by our customer, operate for all other purposes as if employed by Aero Inventory. In some other 
locations, personnel are contracted on a long-term basis through local agencies to avoid the complexity of establishing local payrolls etc. 
Such personnel provide valuable committed services to the Company and it is desired to allow them to be considered for the grant of share 
options under the Unapproved Scheme or the LTIP as if they were legal employees. 
Resolution 10: General authority to allot shares
Your Directors may only allot shares or grant rights over shares if authorised to do so by the shareholders. The authority granted at the 
Annual General Meeting of the Company held on 19 November 2007 is due to expire at this year’s Annual General Meeting. Accordingly, this 
resolution will be proposed as an ordinary resolution to grant a new authority to allot unissued share capital up to an aggregate nominal value 
of £198,445.01, representing 33.3 per cent of the total issued ordinary share capital as at the date of this notice. If given, this authority will 
expire on 24 February 2010 or at the conclusion of the Annual General Meeting in 2009 whichever is the earlier. The directors have no 
present intention of exercising this authority.
Resolution 11: Dis-application of pre-emption rights
Your Directors also request additional authority from the shareholders to allot shares or grant rights over shares where they propose to do so for 
cash and otherwise than to existing shareholders pro rata to their holdings. The authority granted at the Annual General Meeting of the Company 
held on 19 November 2007 is due to expire at this year’s Annual General Meeting. Accordingly, this resolution will be proposed as a special 
resolution to grant such authority. The authority will be limited to the issue of shares up to an aggregate nominal value of £59,533.50 (being  
10 per cent of the total issued ordinary share capital as at the date of this notice). If given, this authority will expire on 24 February 2010 or at the 
conclusion of the Annual General Meeting in 2009 whichever is the earlier. The directors have no present intention of exercising this authority.
The Resolution also requests the renewal of authorities previously given in relation to options to be granted under share option schemes.
Resolution 12: Adoption of new articles of association
This Resolution seeks approval for the adoption of new articles of association of the Company. The Company’s current articles of association 
were last amended on 21 November 2005. Since then there have been a number of developments in the law and market practice which 
affect the Company’s articles of association including, recently, the implementation of certain parts of the Companies Act 2006. The 
Company together with its advisers has therefore carried out a detailed review of its articles of association and considers that this is an 
appropriate time to update them to reflect the current law and practice.
A summary of the reasons for and effect of the principal differences between the existing articles of association and those proposed to be 
adopted are summarised in Appendix 2 to this notice.
Resolution 13: Sending documents by making them available on a website
New provisions of the Companies Act 2006 came into effect on 20 January 2007, enabling companies, in certain circumstances, to send 
documents to shareholders by making them available on a website and notifying the shareholders where the documents can be accessed.  
This resolution seeks to grant authority for the Company to take advantage of this legal change in the future if the Board decides that this 
would be in the best interests of the Company.  
If the Company decides to implement the authority to be given by this Resolution, an individual separate letter from the Company requesting 
each shareholder’s consent to send copies of annual reports and other documents in future by means of making them available on a website 
will be sent under separate cover. The letter will advise that if a shareholder wishes to consent to this method of communication, they should 
do nothing, as a nil response will constitute deemed consent after 28 days have passed. The letter will also advise what to do if a shareholder 
does NOT wish to consent.
Notice of Annual General Meeting continued
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 63 
Our Performance Governance Shareholder Information
Aero Inventory plc Global Savings-Related Share Option Plan (‘the Global Plan’)
It is proposed to implement a global savings-related share option plan in addition to the existing UK savings related share option scheme. 
This will give Aero Inventory personnel outside the UK the opportunity to apply for and be granted share options. The shares will eventually 
be bought using amounts they have saved under a savings arrangement. Where considered appropriate, the Global Plan will be structured 
as far as possible to provide a tax-advantageous way for participants to gain an interest in the shares of the Company. The principal features 
of the Global Plan are as follows:
1. Administration
The Company’s Remuneration Committee (‘the Committee’) is responsible for administering the Global Plan.
2. Tax authority approval
In relevant jurisdictions, formal approval in relation to local tax and securities legislation will be sought. The Global Plan will be operated in 
compliance with all relevant legal and tax requirements.
3. Grant of options and eligibility
The Committee may invite all eligible personnel employees to apply for the grant of an option to acquire ordinary shares in the Company 
during the appropriate Invitation Period. A fixed number of shares may be made available for such applications. If applications exceed the 
number of shares available, the Global Plan rules will provide for applications to be scaled back.
4. Invitation periods
Invitation Periods are a period of six weeks commencing four days after each date on which the Company announces its annual or half-yearly results.
5. Savings contract
The grant of options will be subject to applicants agreeing to enter into a suitable savings arrangement for no less than three years, saving 
the equivalent of between £10 and £250 per month.
6. Exercise price
The exercise price per ordinary share shall be not less than the higher of the nominal value of the share or 90 per cent of the average market 
value of a share on the three business days before the invitation to apply for that option was issued.  
7. Plan limit
The maximum number of ordinary shares over which options to subscribe may be granted under the Global Plan or any other share option scheme 
(other than the Aero Inventory plc Long Term Incentive Plan) may not exceed 10 per cent of the issued and issuable share capital from time to time.
8. Exercise and lapse of options
General position
Options are generally exercisable at or after the dates when the relevant savings arrangement matures. Participants may choose not to 
exercise the options and retain the proceeds of the savings arrangement.
Special circumstances
Options will generally lapse on cessation of service except in particular situations such as redundancy or disability. Exercise is also permitted 
in special circumstances such as a takeover.
Exchange of options on a takeover
In the event of a takeover, an option holder may be permitted to exchange their options for options over shares in the acquiring company.
9. Variations of share capital
On certain variations of the ordinary share capital of the Company, the Committee may, subject to the approval of the Company’s auditors, 
adjust the exercise price and the number of ordinary shares comprised in existing options.
10. Amendment
The Committee may amend the rules of the Global Plan provided that no amendment may materially affect an existing option, and no 
amendment may be made which would make the terms on which options may be granted more generous with the prior approval of the 
company in general meeting.
Further, the Committee may make any changes which they consider appropriate, including the creation of any sub-plan or addendum to the 
Plan, without further approval of the Company in general meeting, to: (i) conform the terms of the Global Plan with the requirements of each 
jurisdiction where a participant is located; or (ii) take account of or mitigate or comply with taxation, securities or exchange control laws; or (iii)  
improve the tax and/or social security position of the Company or any other group company or of any of the persons eligible to participate.      
However, any such arrangements which are established for overseas participants will not be materially more favourable to such participants 
than the Company’s UK savings related share option scheme. 
11. Relationship with employment contract
The grant of an option does not form part of an option holder’s rights or entitlements under their contract of employment, nor does it affect 
the terms of their contract of employment.
Appendix 1
Back to contents Next page Previous page Back to contents Next page Previous page 64 Aero Inventory plc 2008 
Our Strategy Our Business Our Markets
Explanatory notes of principal changes to the Company’s Articles of Association
1. Articles which duplicate statutory provisions
Provisions in the Current Articles which may conflict with provisions in the Companies Act 2006 are in the main amended to bring them into 
line with the Companies Act 2006.  Certain examples of such provisions include provisions as to the form of resolutions, the variation of class 
rights, the requirement to keep accounting records and provisions regarding the period of notice required to convene general meetings. The 
main changes made to reflect this approach are detailed below.
2. Form of resolution
The Current Articles contain a provision that, where for any purpose an ordinary resolution is required, a special or extraordinary resolution is 
also effective and that, where an extraordinary resolution is required, a special resolution is also effective. This provision is being amended as 
the concept of extraordinary resolutions has not been retained under the Companies Act 2006.
3. Convening extraordinary and annual general meetings
The provisions in the Current Articles dealing with the convening of general meetings and the length of notice required to convene general 
meetings are being amended to conform to new provisions in the Companies Act 2006. In particular a general meeting to consider a special 
resolution can be convened on 14 days’ notice whereas previously 21 days’ notice was required.
4. Votes of members
Under the Companies Act 2006 proxies are entitled to vote on a show of hands whereas under the current articles proxies are only entitled to 
vote on a poll. The time limits for the appointment or termination of a proxy appointment have been altered by the Companies Act 2006 so 
that the articles cannot provide that they should be received more than 48 hours before the meeting or in the case of a poll taken more than 
48 hours after the meeting, more than 24 hours before the time for the taking of a poll, with weekends and bank holidays being permitted to 
be excluded for this purpose. Multiple proxies may be appointed provided that each proxy is appointed to exercise the rights attached to a 
different share held by the shareholder. The proposed new articles reflect all of these new provisions.
5. Conflicts of interest
The Companies Act 2006 sets out directors’ general duties which largely codify the existing law but with some changes. Under the 
Companies Act 2006, from 1 October 2008 a director must avoid a situation where he has, or can have, a direct or indirect interest that 
conflicts, or possibly may conflict with the Company’s interests. The requirement is very broad and could apply, for example, if a director 
becomes a director of another company or a trustee of another organisation. The Companies Act 2006 allows directors of public companies 
to authorise conflicts and potential conflicts, where appropriate, where the articles of association contain a provision to this effect. The 
Companies Act 2006 also allows the articles of association to contain other provisions for dealing with directors’ conflicts of interest to avoid 
a breach of duty. The new articles give the directors authority to approve such situations and to include other provisions to allow conflicts of 
interest to be dealt with in a similar way to the current position.
These are safeguards which will apply when directors decide whether to authorise a conflict or potential conflict. First, only directors who 
have no interest in the matter being considered will be able to take the relevant decision, and secondly, in taking the decision the directors 
must act in a way they consider, in good faith, will be most likely to promote the Company’s success. The directors will be able to impose 
limits or conditions when giving authorisation if they think this is appropriate.
It is also proposed that the new articles should contain provisions relating to confidential information, attendance at board meetings and 
availability of board papers to protect a director being in breach of duty if a conflict of interest or potential interest arises. These provisions will 
only apply where the position giving rise to the potential conflict has previously been authorised by the directors. It is the Board’s intention to 
report annually on the Company’s procedures for ensuring that the Board’s powers to authorise conflicts are operated effectively.
6. General
Generally the opportunity has been taken to bring clearer language into the New Articles. 
Appendix 2
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc 2008 65 
Our Performance Governance Shareholder Information
Financial calendar
Financial year end   30 June 2008
Preliminary results   22 September 2008
Ex-dividend date   14 November 2008
Annual General Meeting  24 November 2008
Payment of final dividend  11 December 2008
Interim results   March 2009
Financial year end   30 June 2009
Preliminary results   September 2009
Annual reports
Further copies of this annual report are available from the Company Secretary at the Registered Office. It can also be ordered through the 
Financial Times Annual Report service.
Share price information
The Company’s share price is quoted daily in the Financial Times and the Daily Telegraph, in both cases in the Alternative Investment  
Market section.
Reuters code: AI.L
Bloomberg code: AI/ LN
Investor relations information
The Company’s website – www.aero-inventory.com – provides certain investor relations information, including press releases and access to  
up-to-date share price data.
Registrar
Enquiries about administrative matters relating to the holding of Aero Inventory plc shares should be addressed to the Company’s registrars, 
Capita Registrars, Shareholder Services Department, Northern House, Woodsome Park, Fenay Bridge, Huddersfield, West Yorkshire HD8 0LA, 
tel: 0870 1623 3100*.  (Telephone number from outside the UK: +44 20 8629 3399). This includes: loss of share certificates; notification of 
change of address; and transfer of shares to another person. 
CREST
A computerised system for settling sales and purchases of shares (CREST) operates for the Company’s shares. It is a voluntary system that 
enables shareholders, if they choose, to hold and transfer shareholdings electronically rather than in paper form. Shareholders wishing to retain 
their paper certificates continue to be able to do so.
Further information
For further information, please contact Hugh Bevan (Finance Director) on +44 (0)20 8447 3303, or by email, to hugh.bevan@aero-inventory.com
*Calls cost 10p per minute plus network extras.
 
Shareholder information
Back to contents Next page Previous page Back to contents Next page Previous page 66 Aero Inventory plc 2008 
Our Strategy Our Business Our Markets
Directors
H N P McCorkell FCA
P R Lewin 
M P Dodge MBA 
H C Bevan FCA 
P M Docker 
C L Trupp 
M J Webster
R W J Davis
L Heyworth
F Turner FR Eng 
Secretary
M J Webster FCIS
Company number
2887038
Registered office
30 Lancaster Road
New Barnet
Hertfordshire
EN4 8AP
Auditors
Deloitte & Touche LLP
Reading
 
Solicitors 
Taylor Wessing
London
 
Principal bankers 
Lloyds TSB Bank plc
10 Gresham Street
London
EC2V 7AE
Nominated adviser and joint broker
J P Morgan 
Cazenove Limited
20 Moorgate
London
EC2R 6DA
 
Joint broker 
Numis Securities Limited
10 Paternoster Square
London
EC2M 7LT
Registrars 
Capita Registrars
Shareholder Services Department 
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
West Yorkshire 
HD8 0LA
 
Company information
Five year summary
Aero Inventory would like to thank its customers HAECO, Aveos Fleet Services and Qantas Airways  
for the provision of photographs for use in this report.
Year ended 30 June       
    2004 2005 2006 2007 2008 
    $’000 $’000 $’000 $’001 $’000
Turnover    38.6 79.5 117.1 247.0 440.0
Operating profit    3.5 14.3 21.2 52.9 93.3
Net Interest    (0.4) (1.3) (3.0) (7.3) (20.2)
Pre-tax profit    3.0 13.0 18.2 45.6 73.1
Tax    (1.2) (3.8) (6.1) (14.5) (21.5)
Profit after tax    1.9 9.2 12.1 31.1 51.6
      
Fully diluted EPS (cents)    10.4 45.9 40.5 65.2 101.8
Dividends per share (pence)    4.8 8.0 10.0 15.0 18.0
Shareholders’ funds    59.6 76.4 231.2 253.8 294.2
Employees (average)    101 114 139 184 297
Back to contents Next page Previous page Back to contents Next page Previous page I/We  (block letters please)
of
being a member/members of Aero Inventory plc hereby appoint the Chairman of the Meeting or
as my/our proxy to vote for me/us and on my/our behalf at the Annual General Meeting of the company to be held on 24 November 2008, 
and at any adjournment thereof, in the manner specified below.
Resolutions For Against
 1.  To receive and adopt the accounts
 2.  To declare the dividend
 3.  To re-elect P R Lewin 
 4.  To re-elect H N P McCorkell
 5.  To re-elect C L Trupp
 6.  To re-appoint the auditors and to authorise the directors to agree their remuneration
 7.   To approve the establishment of the Aero Inventory plc Global Savings-Related Share Option Plan  
and to authorise the directors to put the plan into effect
 8.  To amend the rules of the Aero Inventory plc Unapproved Share Option Scheme  
to allow the establishment of non-UK sub-plans
 9.   To authorise the grant of options under the Aero Inventory plc Unapproved Share Option Scheme  
and the Aero Inventory plc Long Term Incentive Plan to certain non-employee personnel
 10.  To authorise the directors under section 80
 11.  To disapply pre-emption rights
 12.  To adopt new Articles of Association 
 13.  To authorise the Company to use electronic communications to shareholders
Signature Dated 2008
Notes
(1)  Please indicate by a X in the space provided how you wish your votes to be cast. Without such directions the proxy will vote or abstain at his/her discretion.
(2)  In the case of a corporation this form of proxy should be completed under its common seal or signed by its attorney or by an officer on its behalf.
(3)   In the case of joint holders the vote of the senior who tenders the vote will be accepted to the exclusion of all others, seniority being determined by the order in which the 
names stand in the Register of Members.
(4)   To be valid this form of proxy, duly executed, and the power of attorney or other authority (if any) under which it is executed or a certified copy of such power or authority 
must be received at the Company’s registered office not later than 48 hours before the time appointed for the Meeting.
(5)   If a member wishes to appoint any other person to act as proxy, insert the name in the space provided and strike out all other appointees. The proxy need not be a 
member of the Company.
(6)  Completion of this form will not preclude you from attending and voting at the Meeting if you so wish.
(7)  Any alteration to this form of proxy must be initialled. 
 
Form of proxy
✂
For Company Secretary’s use
Number of shares 
Back to contents Next page Previous page Back to contents Next page Previous page SECOND FOLD
THIRD FOLD AND TUCK IN OPPOSITE
FIRST FOLD
AFFIX
STAMP
HERE
Capita Registrars (Proxies)
PO Box 25
34 Beckenham Road
Beckenham
Kent
BR3 4BR
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory is listed on the Alternative Investment Market 
of the London Stock Exchange with operations in the United 
Kingdom, Australia, Canada, China, Bahrain, Hong Kong, 
Indonesia, Japan, Switzerland and the United States of America.
We are a service provider to companies in the aerospace industry, 
providing a comprehensive procurement and inventory 
management service.
We focus on the hundreds of thousands of consumable and 
expendable parts required in the maintenance of commercial aircraft 
and our e-based systems are complemented by on-site representation 
and 24-hour customer support. We aim to grow the business by 
securing contracts with additional customers who can benefit 
operationally and financially from our services, including airlines and 
aerospace maintenance and repair companies.
Aero Inventory’s ultimate goal is to become the world’s 
leading aircraft consumable parts service provider
 
Aero Inventory
Aero Inventory is proud to be a major sponsor of  
the Vulcan to the Sky Trust for 2008/09. 
The mission of the Trust is 
• To preserve and protect AVRO Vulcan G-VLCN ( XH558), to return  
 her to full working order for the benefit of the public.
• To demonstrate and display the aircraft at public events and to   
 conserve her as a heritage asset in perpetuity.
• To advance the education of the general public, and also specifically  
 engineers and aviators, in the AVRO Vulcan, her provenance;   
 historical and social context; design technologies; operational and  
 maintenance processes and procedures; for the benefit of British  
 heritage, historical and technical knowledge and conservation.
• To assist in the conservation to full working order of other heritage  
 aircraft of the 20th century.
The Trust delivered its aim of demonstrating Vulcan XH558 at a number 
of UK air shows in 2008, attracting much public and commercial 
interest. With this sponsorship, Aero Inventory aims to support the 
Trust’s objectives of honouring the past and inspiring the future. 
Aero Inventory is using its association with the Vulcan to the 
Sky Trust to build global awareness of the Aero Inventory brand. 
Back to contents Next page Previous page Back to contents Next page Previous page Aero Inventory plc
annual report and accounts 2008
United Kingdom
Aero Inventory plc/Aero Inventory (UK) Limited 
30 Lancaster Road, New Barnet  
Hertfordshire, EN4 8AP United Kingdom
Tel  +44 (0)20 8449 9263 
Fax  +44 (0)20 8449 3555
Email info@aero-inventory.com     
Hong Kong
Aero Inventory (Hong Kong) Limited
Units 01-06, 6th Floor, Airport Freight Forwarding Centre
2 Chun Wan Road, Chek Lap Kok, Hong Kong
Tel  +852 3657 2600
Fax  +852 3657 2601
Email enquiries.hk@aero-inventory.com 
 
Australia
Aero Inventory (Australia) Pty Limited
Level 7, 250 Victoria Parade
East Melbourne, Victoria 3002
Tel  +61 3 9445 5700
Fax  +61 3 9445 5798
Email enquiries.aus@aero-inventory.com 
 
United States of America
Aero Inventory (USA) Inc
12257 Florence Avenue
Santa Fe Springs, California 90670
Tel  +1 562-236-5500
Fax  +1 562-236-5501
Email enquiries.usa@aero-inventory.com 
Bahrain
Aero Inventory (Bahrain) S.P .C.
Door 1 & 2, Gate 18
Free Trade Zone – GLS Compound
Bahrain International Airport
Muharraq 
Kingdom of Bahrain
Tel  +973 173 20560
Fax  +973 173 20762          
Email enquiries.bahrain@aero-inventory.com
Japan
Aero Inventory Japan KK 
Utility Center Building 4th Floor
3-5-10 Haneda Airport
Otaku, Tokyo 144-0041 
Japan
Tel  +81-3-5756-7700
Fax  +81-3-5756-0303
Email enquiries.japan@aero-inventory.com
www.aero-inventory.com
Aero Inventory plc  annual report and accounts 2008
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