NORMAN HAY PLC 
 
 
 
 
 
REPORT AND ACCOUNTS 2007  A NNUAL R EP ORT 20 07
01
Welcome
Financial Highlights 2007
The Norman Hay Group is a specialist chemicals business, 
focused on global opportunities for sealants and surface coatings
designed to operate in hostile and challenging environments.
We market a portfolio of industry brand leaders recognised 
and respected by a diverse range of industries around the world.
● Revenue up 18% 
● International revenue up 45% 
● Operating profits before non-recurring items up 16%
● Pre-tax profits increased to £2.34m
● Earnings per share increased to 11.4p
● Dividend for the year up 33% 
Contents
Financial Highlights 1
Business Divisions 2
Worldwide Presence 3
Chairman’s Statement 4
Chief Executive’s Business Review 6
Directors and Advisers 10
Report of the Directors 11
Statement of Directors’ Responsibilities 14
Independent Auditors’ Report 15
Consolidated Income Statement 16
Consolidated Balance Sheet 17
Consolidated Cash Flow Statement 18
Consolidated Statement of Recognised 
Income and Expense 19
Notes to the Group Financial Statements 20
Parent Company Balance Sheet 48
Notes to the Financial Statements 
of the Parent Company 49
Notice of Meeting 57
Form of Proxy 59
77354 Pre  19/5/08  18:41  Page 1 Business Divisions
N OR M AN H AY P L C
02
Automotive Sealants
“we make things pressure-tight”
Specialist Impregnation
Sealants
– solutions for managing micro-porosity
in castings
About us
We are world leaders in the supply of
thermo-cure methacrylate sealants for
the impregnation of porous metal
castings, sub contract sealing systems 
and impregnation process plant.
Our client industries:
General engineering
Automotive suppliers
Gas & water industries
Automotive manufacturers
Foundry & die cast industry
Our Norman Hay businesses:
Ultraseal
Norman Hay Engineering
MX Systems International
Construction Sealants
“we make things waterproof”
Specialist Waterproof Sealants
– solutions for structural waterproofing
About us
We are world leaders in specialist
chemicals for waterproofing, leak sealing,
ground stabilisation, substrate repair 
and protection of constructions above 
and below ground.
Our client industries:
Ports & water authorities 
Water retaining structures
Construction and buildings
Tunnels, utilities & airports
Surface & underground rail
Civil engineering & highways
Our Norman Hay businesses:
TAM International
Surface Coatings
“we make things tougher”
Specialist Industrial Coatings
– solutions for surface release, wear 
and corrosion resistance
About us
We are world leaders in industrial surface
coatings and associated process plant. 
We modify component surfaces to
improve performance in hostile and
challenging environments.
Our client industries:
Marine
Precision engineering
Mining and extraction
Aviation and aerospace
Sterile food manufacture 
Oil, gas and petro-chemical
Our Norman Hay businesses:
Armourcote
Surface Technology
Norman Hay Engineering
Applied Precision Coatings
Hi Tech Coatings
We operate a portfolio of brand leaders recognised and
respected around the World.
Our specialist chemical divisions:
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Worldwide Presence
03
We are accelerating our global activities and developing our worldwide
infrastructure of manufacturing units, sales offices and distribution networks.
We continue to make selective acquisitions, appoint new distributors and 
invest in joint ventures to take advantage of emerging world markets.
Group Locations Distributor Network
USA - Ann Arbor  UK -
East Kilbride
Leeds
Coventry
Daventry
Slough
INDIA - Pune SINGAPORE
CHINA - Shanghai  
JAPAN - Tokyo 
HONG KONG
AUSTRALIA -
Adelaide
Brisbane
Perth
MALAYSIA -
Port Klang
77354 Pre  19/5/08  18:41  Page 3 Chairman’ s Statement
N OR M A N H AY P L C
04
2007 was another excellent year for the Norman
Hay Group with underlying operating profits up 16% 
on the previous year.
Our continuing success results from streamlining our
lower margin operating units in the UK, coupled with 
a drive to increase international revenues.
This focus has exposed the improved high margins we 
are able to achieve in the niche chemical businesses 
in which we specialise and which we are developing
around the world.
Dividends
A final dividend for the year of 2.6p is proposed 
(2006: 2.0p) making the total for the year 4.4p, an
increase of 33% on the preceding year’s total of 3.3p.
If approved at the Annual General Meeting to be held
on 18 June 2008, the dividend will be paid on 25 July
2008 to shareholders on the register on 20 June 2008.
Business Overview- a focus on 
chemical excellence
Norman Hay plc’s strength lies in our niche chemical
businesses. Their names and brands are recognised and
respected around the world. 
The Group comprises three main chemical divisions:
Surface Coatings — “Armourcote”
Automotive Sealants — “Ultraseal”
Construction Sealants — “TAM International”
These three primary divisions are supported by the
engineering operation, which manufactures specialist
process plant and equipment.
Business in the UK for our sub-contract surface coating
services has remained strong and we are reaching out
to service the requirements of our multi-national
customers by investing in operations overseas. 
In November 2007 we acquired Hi-Tech Coatings 
in Perth, Western Australia and in the second 
quarter of 2008 we announced the opening of our 
new Armourcote facility in Port Klang, Malaysia. 
These businesses will jointly service the growing
requirements of the oil and gas exploration industries
of the region.
International demand for our Ultraseal range of
recyclable impregnation sealants for the automotive
industry remains strong with new installations in
Europe, India and China.
Our acquisition of TAM International at the end of 2006
has allowed us to enter the construction industry, a
new and significant market place for the Group. 
During the year we have invested in strengthening
TAM’s technical, manufacturing and marketing
infrastructure so as to allow the business to expand
substantially over the next few years.
The engineering business, an amalgamation of all of
the Group’s historic plant manufacturing operations,
has performed well this year. 
Well known and respected for the quality of its
engineering design, the business has continued to
develop its strong customer base worldwide.
Staff
As the Group grows and we welcome new colleagues
from around the globe to our operations, I would like 
to thank all those working in our existing businesses.
Their hard work and dedication and, in many cases,
long service, has allowed us to build the strong base
upon which our international expansion is founded.
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05
Current Position and Outlook
In April of this year, following the sale of our 
BK Engineering business to its management in 2006,
we sold the freehold site in Bedfordshire.
We are still working with Unite plc but, as yet, have 
not been able to secure an acceptable Planning
Consent for student accommodation on our Coventry
city centre site. 
As the City Council continues to review plans for the
renewal of Coventry, our site remains excellently
located for whatever shape that plan eventually takes.
In addition to our AIM listing, the Group’s ordinary
shares were also admitted to trading on PLUS markets
in March 2008, with the same ticker symbol (HNN) as
on AIM. 
This will, I believe, help bring increased liquidity for
shareholders as well as providing greater access to
investors. Norman Hay’s shares will continue to be
quoted and traded on AIM. 
I am pleased to say that the year has started well 
and current trading remains buoyant throughout
the Group. 
Peter L Hay
Chairman
20 May 2008 
The Group has
successfully executed
the initial stage of its 
re-focused strategy 
on specialist chemical
products. We are now
strongly positioned 
to realise the global
opportunities of these
value added growth
markets.
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06
Chief Executive’ s Business Review
Norman Hay Group Review of 2007
I am pleased to report that the Norman Hay Group 
has continued to pursue successfully its strategy of
worldwide growth during 2007.
Financial Performance
The reported profit before tax for the year was £2.34m
representing an 8% increase over last year — another
record for the Group. The Group’s balance sheet remains
strong, with low gearing.
Operations
Our operations are divided into three primary divisions
and brands: 
Specialist surface coatings — “Armourcote”
Automotive sealants — “Ultraseal”
Construction industry sealants — “TAM”
The three primary divisions are supported by Norman
Hay Engineering, manufacturers of chemical process
plant and equipment. Each division contains various
respected sub-brands and products.
Our three World Leading
Chemical Brands are:
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Specialist Surface Coatings: Armourcote
Brand: Armourcote
Surface Coatings are designed to inhibit corrosion and
provide surface release for marine, petro-chemical,
general engineering and sterile food manufacturing
equipment. The Armourcote brand is one of the strongest
names in the market place. 
Leeds-based Armourcote was acquired in 1988 along
with surface finishing businesses in Coventry and East
Kilbride which now operate under the name of Surface
Technology plc.
Armourcote’s reputation is founded on consistent high
quality, attention to detail and the ability to handle
components of all sizes; this differentiates Armourcote
from the competition. It specialises in solving problems
and providing the technical expertise that our
customers have come to expect from us. 
As well as operating from our Leeds headquarters,
where the process development centre is located, the
Armourcote range of coatings is offered through a
growing number of sub-contract business locations.
These Surface Technology sub-contract centres operate
in the UK from sites in Scotland, Leeds, Coventry and
Slough, giving us the ability to respond rapidly to
customer needs throughout the Country. 
As our major oil tool customers expand their operations
in South East Asia, Armourcote’s strategic focus has
been on opportunities to provide process facilities on 
a global basis. 
In the second quarter of 2008, the new Armourcote
facility in Malaysia became operational. This facility
will complement Hi-Tech Coatings located in Perth,
Western Australia, which Norman Hay acquired in
November 2007. 
The Oil and Gas exploration and extraction industries
which we serve are becoming increasingly active in the
waters off the western coast of Australia, stretching up
to the Malaysian Peninsula. Together, our two new
operations will service the needs of our Oil Tool
customers in providing the range of Armourcote
coatings required to protect their components 
working in these hostile marine environments.
In December 2007 we acquired the remaining minority
shareholding of APC Ltd, and we are in the process of
relocating the operation from Bradford to a new facility
close to our Armourcote business in Leeds.
The Surface Coatings division continues to produce
excellent results. The integration of Hi-Tech Coatings
and the opening of the new Malaysian business give a
positive outlook for 2008 as we expand into promising
emerging markets. 
07
77354 Pre  19/5/08  18:41  Page 7 Chief Executive’ s Business Review continued
N OR M A N H AY P L C
Automotive Sealants: Ultraseal
Brands: Ultraseal/Rexeal/MX
Ultraseal International is a global leader in providing
practical solutions to the ubiquitous problem of micro
porosity in metal castings, using a process known as
resin impregnation. Norman Hay plc acquired Ultraseal 
in 1999.
Ultraseal is the acknowledged world leader in its field,
providing consumable sealant and capital vacuum
impregnation equipment to a global customer base
predominantly in the automotive sector.
The focus and commitment to the automotive industry
is demonstrated by the strategic location of a wholly
owned subsidiary in the Detroit area of USA, a sales 
and distribution office in Tokyo, a joint venture and
manufacturing facility in India and, more recently, 
by establishing licensee and joint venture companies 
in the rapidly expanding Chinese market. 
Ultraseal is also world renowned for the development
and supply of the only globally approved recycling
sealant. 
The Research and Development programme in its
Coventry laboratories continues to focus on advanced
products that are not only more environmentally
friendly but which also have less overall requirement
on energy consumption, thus reducing the carbon
footprint for this sector of industry.
Ultraseal has an excellent, technically supported, sales
and distribution network worldwide. A key part of its
strategy is to seek out additional companies whose
products could be added to its global offering to the
automotive industry. 
Ultraseal produced good profits in 2007 and the
demand for impregnation sealants remains strong.
Construction Industry Sealants: TAM
Brands: TamPur/TamAcryl/TamSil/
TamSeal/TamCrete
TAM International is a world leader in structural
waterproofing using specialist polymers and epoxies.
Norman Hay plc acquired 75% of TAM International in
December 2006.
TAM has manufactured and supplied specialist
chemicals and waterproofing products for the
construction and building industry for over 25 years.
It has sales, distribution and manufacturing activities
strategically located worldwide to serve the global
construction industry. The main manufacturing sites
are  in the UK and Australia, with smaller blending
facilities in Singapore and Hong Kong.
The world market for construction chemicals is
estimated to be in the region of $2.0bn. TAM operates
in niche product areas, bringing the opportunity to
grow substantially both organically and geographically.
TAM is currently in the process of reviewing a variety 
of manufacturing and distribution opportunities,
including joint ventures, in the Gulf States, India,
Taiwan and other emerging markets. 
Sales grew during 2007 as a strategic review of the
business was undertaken. TAM made a modest
contribution to overall Group profits in the year 
as we invested in a stronger sales and marketing
capability designed to support our high expectations
for the future. 
08
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Chemical Process Plant and Equipment:
Norman Hay Engineering
Norman Hay Engineering, our process plant operation,
manufactures capital plant and equipment under the
Plasticraft, PMD, Ultraseal and Ardrox banners.
This supports the activities of Ultraseal International
with the design and manufacture of highly specialised
vacuum impregnation plants for turnkey projects
predominantly for the automotive industry. 
Plasticraft and PMD branded metal processing plants 
are designed for aerospace, automotive and general
engineering customers and are complemented by 
the Ardrox range of NDT (non-destructive testing) 
crack detection machines.
Summary
Norman Hay plc is sharply
focused on industries and
customers that value its
unique products, innovative
technologies and processes.
We will actively continue
to seek out opportunities
for acquisitions, joint
ventures, and new
partnerships with
distributors, to support
our worldwide growth. 
Victor P Bellanti
Chief Executive 
20 May 2008
09
77354 Pre  19/5/08  18:41  Page 9 Directors and Advisers
N OR M A N H AY P L C
10
Executive Directors
Peter L Hay  Chairman
Peter Hay  has been on the Board of the Company for thirty five years, serving as Managing Director for 
eleven years.
Victor P Bellanti  Chief Executive
Victor Bellanti has been with Norman Hay plc for fourteen years. A graduate qualified accountant,
he was previously the Group Finance Director and was appointed Chief Executive in March 2000.
Non-Executive Directors
Anthony M Hay  Non-Executive Director
Anthony Hay has been a Director of the Company for forty four years, served as Chairman from 1984 to 
1993 and is independent from the day to day running of the Group. He is Chairman of the Audit and 
Remuneration Committees.
David W Miller  Non-Executive Director
David Miller, Chief Operating Officer up until his retirement on 30 December 2006, was employed by 
Norman Hay plc for seven years, following a successful international executive career. In February 2007 
David rejoined the Company as a Non-Executive Director.
Secretary and Registered Office
Brigid M Cattle
Godiva Place, Coventry  CV1 5PN
Registered Number 405025
Auditors
BDO Stoy Hayward LLP
125 Colmore Row, Birmingham B3 3SD
Bankers
Bank of Scotland, 38 St Andrew Square
Edinburgh  EH2 2YR
Close Brothers, 10 Crown Place
London  EC2A 4FT
Registrars
Equiniti
PO Box 28448
Finance House
Orchard Brae
Edinburgh  EH4 1WQ
Nominated Adviser and Broker
Brewin Dolphin Securities Limited
PO Box 512
National House
36 St Ann Street
Manchester  M60 2EP
77354 Pre  19/5/08  18:41  Page 10 A NNUAL R EP ORT 20 07
Report of the Directors
11
The Directors have pleasure in submitting their annual
report and audited financial statements for the year 
ended 31 December 2007.
Results and dividends
The Group Income Statement is set out on page 16 
and shows revenue for the year of £24.0m and profits 
on ordinary activities before tax of £2.34m.
Revenue has risen 18% whilst pre tax profits are up 
by 7.7%.
Business review
The business information on pages 2 and 3 and the
Chairman’s Statement and Chief Executive’s Business
Review on pages 4-9, provide detailed information
relating to the Group and the operation and
development of the business for the year ended
31 December 2007.
Principal risks and uncertainties
During the last year, the Group has continued 
to execute strategies to optimise business
opportunities and minimise exposure to principal 
risks and uncertainties.
We have now established the Group framework 
built on three separate business divisions:- Surface
Coatings; Automotive Sealants; and Construction
Sealants, and have extended our global reach to
improve our geographical presence.
As the Group expands worldwide there is a potential
risk of financial loss or damage to our reputation
resulting from inadequate, or failed internal processes
and systems, or the actions of people or external
events. The Group manages these potential risks
through appropriate controls and loss mitigation
actions. Examples include:
taking sufficient insurance cover, including business
interruption;
maintaining disaster recovery plans for all 
major sites;
maintaining rigorous data backup procedures;
carrying out a regular review of the principal
suppliers and customers of the Group, and how
each impacts on the Group’s business;
regularly reviewing performance against budgets
and forecasts; and
establishing clearly defined procedures for the
authorisation of major new investments and
commitments.
The Board and management teams continue to
monitor potential risk areas and adjust tactical and
strategic plans accordingly to protect our businesses.
Another key element and principal risk of managing
the Group’s growth is our personnel. It is important
that the Group succeeds in attracting, developing and
retaining, qualified, experienced and motivated staff
worldwide.
The Board of Directors of Norman Hay accept their
collective responsibility in providing health and safety
leadership and regard the effective management of
health and safety risks as key to the fulfilment of the
Group’s business objectives.
Financial Instruments
Details of the use of Financial Instruments and
Financial Instruments Risk Management are contained
in Note 32 of the Financial Statements.
International Financial Reporting Standards (IFRS)
The adoption of IFRS is mandatory for UK AIM listed
Groups’ consolidated financial statements with effect
from 1 January 2007.
The Group has prepared the 31 December 2007
financial statements in accordance with IFRS, including
the 2006 comparatives. 
Directors
The Directors of the Company, shown on page 10, 
held office throughout the year.  Mr. Peter Hay retires 
by rotation and, being eligible, offers himself for
re-election.
77354 Pre  19/5/08  18:41  Page 11 Report of the Directors continued
N OR M A N H AY P L C
12
Directors’ interests
Interest in shares
The interests of the Directors and their immediate
families in the share capital of the Company, on the
dates set out below, are as follows:
At 1 January 31 December 
2007 2007
Beneficial Beneficial
P L Hay 1,910,221 2,210,870
A M Hay 1,107,521 1,108,170
V P Bellanti 125,000 125,000
D W Miller 92,000 264,750
Details of the Directors’ interests in share options 
are as follows:
Interest in share options
Opening at Closing at
1 January 31 December 
2007 2007
P L Hay Approved(a) 144,925 144,925
V P Bellanti Approved (a) 144,925 144,925
V P Bellanti Unapproved (b) 620,075 620,075
P L Hay Unapproved (b) 420,075 420,075
(a) The approved options are exercisable between 
5 July 2009 and 4 July 2016 at 69p per share.
(b) The unapproved options are exercisable between 
5 July 2006 and 4 July 2016 at 69p per share 
upon the share price achieving 250p or a change 
in control.
At 31 December 2007 the middle market price of the
ordinary shares was 114.5p per share, and the range 
during the year was between 77p and 152.5p.
Substantial shareholdings
At 31 December 2007, the Company has been notified 
of the following holdings in the issued share capital 
of the Company
Ordinary Shares %
Mr P L Hay 2,210,870 14.92
Mrs G Luker 1,476,571 9.96
Mr A M Hay 1,108,170 7.48
Miss C Bewsher 747,161 5.04
Mr D Bewsher 746,511 5.03
Mr N Hendy 467,500 3.15
Miss A Hendy 405,000 2.73
Westcombe Investments 352,500 2.37
Mr Hendy and Miss Hendy may be considered
associates of Westcombe Investments. These three
shareholders do not consider themselves to be a
concert party under the rules of the Takeover Panel.
However they consider that they may be deemed to 
be acting in concert by certain regulatory bodies.
Save as disclosed, no other person or company has a
material interest in the shares of the Company of 3% 
or more, or, being an investment manager, interests
aggregating to 10% or more.
Creditors payment policy
The Group’s policy for all suppliers is to fix terms of
payment when agreeing the terms of each business
transaction, to ensure the supplier is aware of those 
terms and to abide by the agreed terms of payment. 
At 31 December 2007 creditors represented 57 days 
of purchases for the year. The Company has negligible
trade creditors.
Indemnity cover
Third party indemnity cover for the Directors was 
in force during the year.
77354 Pre  19/5/08  18:41  Page 12 A NNUAL R EP ORT 20 07
13
Employees
The Directors place considerable value on the
involvement of employees and recognise the
importance of communicating effectively on matters
which affect their current and future interests. 
This communication is achieved through regular
meetings at local operating level and through 
informal briefing sessions.
The Group’s policy is to ensure that, as far as is
reasonably practicable, there is a working environment
which will minimise the risk to health and safety of its 
employees and those persons who are authorised 
to be on its premises.
The Group continues to give full and fair consideration
to applications for employment from disabled persons,
having regard to their particular aptitudes and abilities.
If an employee becomes disabled, the Group endeavours
to continue his or her employment if this is practicable
and, in appropriate cases, special training may be given.
Donations
Donations for charitable purposes during the year 
were £819 (200 : £2,149). No political contributions
were made.
New Articles of Association
In order to bring our current Articles of Association 
into line with the Companies Act 2006, amendments
have been made to our current Articles as defined 
in the attached appendix to the Annual Report.
Resolutions to approve the New Articles and to 
take account of provisions that come into force 
on 1 October, 2008, will be made at the Annual 
General Meeting on 18 June 2008.
The New Articles of Association will be available for
inspection at our registered office or at the office of
Halliwells Solicitors, 1 Threadneedle Street, London
EC2R 8AY.
Auditors
All of the current Directors have taken all the steps that
they ought to have taken to make themselves aware of
any information needed by the Company’s auditors for
the purposes of their audit and to establish that the
auditors are aware of that information. The Directors
are not aware of any relevant audit information of
which the auditors are unaware. 
BDO Stoy Hayward LLP have expressed their willingness
to continue in office and a resolution to re-appoint
them will be proposed at the forthcoming Annual
General Meeting.
By order of the Board
Brigid M Cattle
Company Secretary
20 May 2008
6
77354 Pre  19/5/08  18:41  Page 13 Statement of Directors’ Responsibilities
N OR M A N H AY P L C
14
Directors’ responsibilities
The Directors are responsible for keeping proper
accounting records which disclose with reasonable
accuracy at any time the financial position of the
Group, for safeguarding the assets of the Company, 
for taking reasonable steps for the prevention and
detection of fraud and other irregularities and for the
preparation of a Directors’ Report which complies with
the requirements of the Companies Act 1985.
The Directors are responsible for preparing the annual
report and the financial statements in accordance 
with the Companies Act 1985. The Directors are 
also required to prepare financial statements for the
Group in accordance with International Financial
Reporting Standards as adopted by the European 
Union (IFRS) and the rules of the London Stock
Exchange for companies trading securities on the
Alternative Investment Market. The Directors have
chosen to prepare financial statements for the Group
holding company, Norman Hay plc (the Company), in
accordance with UK Generally Accepted Accounting
Practice (UK GAAP).
Group financial statements
International Accounting Standard 1 requires 
that financial statements present fairly for each
financial year the Group’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 IFRS. 
A fair presentation also requires the  Directors to:
consistently select and apply appropriate
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 IFRS is
insufficient to enable users to understand the
impact of particular transactions, other events and
conditions on the entity’s financial position and
financial performance. 
Parent Company financial statements
Company law requires the Directors to prepare
financial statements for each financial year which 
give a true and fair view of the state of affairs of the
Company and of the profit or loss of the Company for
that period. In preparing these financial statements,
the Directors are required to:
select suitable accounting policies and then apply
them consistently;
prepare the financial statements on a going concern
basis unless it is inappropriate to presume that the
Company will continue in business; 
make judgments and estimates that are reasonable
and prudent; and
state whether applicable accounting standards have
been followed, subject to any material departures
disclosed and explained in the financial statements.
Financial statements are published on the Group’s
website in accordance with legislation in the United
Kingdom governing the preparation and dissemination
of financial statements, which may vary from
legislation in other jurisdictions. The maintenance and
integrity of the Group’s website is the responsibility of
the Directors. The Directors’ responsibility also extends
to the ongoing integrity of the financial statements
contained therein. 
77354 Pre  19/5/08  18:41  Page 14 A NNUAL R EP ORT 20 07
Independent Auditors’ Report
15
We have audited the Group and parent Company
financial statements (the “financial statements”) of
Norman Hay plc for the year ended 31 December 2007,
which comprise the Consolidated Income Statement,
the Consolidated and Company Balance Sheets, the
Consolidated Cash Flow Statement, the Consolidated
Statement of Recognised Income and Expense, and the
related notes. These financial statements have been
prepared under the accounting policies set out therein.
Respective responsibilities of Directors and Auditors
The Directors’ responsibilities for preparing the Annual
Report and Accounts and Group Financial Statements 
in accordance with applicable law and International
Financial Reporting Standards (IFRS) as adopted by 
the European Union and for preparing the parent
Company financial statements in accordance with
applicable law and United Kingdom Accounting
Standards (United Kingdom Generally Accepted
Accounting Practice) are set out in the 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 
have been properly prepared in accordance with the
Companies Act 1985 and whether the information
given in the Directors’ Report is consistent with those
financial statements. We also 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 other information contained in the 
Annual Report and consider whether it is consistent
with the audited financial statements. The other
information comprises the Financial Highlights, the
Business Divisions, the Worldwide Presence, the
Chairman’s Statement, the Chief Executive’s Business
Review, the Directors and Advisers and the Report
of the Directors. 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 other information.
Our report has been prepared pursuant to the
requirements of the Companies Act 1985 and for no
other purpose. No person is entitled to rely on this
report unless such a person is a person entitled to rely
upon this report by virtue of and for the purpose of the
Companies Act 1985 or has been expressly authorised
to do so by our prior written consent. Save as above, we
do not accept responsibility for this report to any other
person or for any other purpose and we hereby
expressly disclaim any and all such liability.
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 judgments 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 IFRS as adopted by the
European Union, of the state of the Group’s affairs
as at 31 December 2007 and of its profit for the
year then ended;
the parent Company financial statements give a
true and fair view, in accordance with United
Kingdom Generally Accepted Accounting Practice,
of the state of the parent Company’s affairs as at
31 December 2007;
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.
BDO Stoy Hayward LLP
Chartered Accountants and Registered Auditors
Birmingham
20 May 2008
77354 Pre  19/5/08  18:41  Page 15 Consolidated Income Statement
for the year ended 31 December 2007
N OR M A N H AY P L C
16
2007 2006
Note £000 £000
Revenue 2 23,959 20,250
Cost of sales (15,327) (12,857)
Gross profit 8,632 7,393
Distribution expenses (631) (370)
Administrative expenses (5,606) (5,088)
Other operating income – 133
Operating profit before non-recurring items 2,395 2,068
Profit on sale of assets 4 – 417
Loss on disposal of business 5 – (290)
Operating profit 3 2,395 2,195
Finance income 6 190 193
Finance costs 7 (243) (214)
Profit on ordinary activities before taxation 2,342 2,174
Taxation 9 (672) (573)
Profit on ordinary activities after taxation 1,670 1,601
Attributable to:
Equity holders of the parent 1,637 1,575
Minority interest 33 26
1,670 1,601
Basic earnings per share 11 11.4p 10.8p
Diluted earnings per share 11 11.4p 10.7p
All amounts relate to continuing activities.
The notes shown on pages 20 to 47 form part of these financial statements.
77354 Accounts  19/5/08  20:05  Page 16 A NNUAL R EP ORT 20 07
Consolidated Balance Sheet
at 31 December 2007
17
2007 2006
Note £000 £000 £000 £000
Assets
Non-current assets
Intangible assets 12 2,437 2,035
Property, plant and equipment 13 4,633 4,094
Investments 14 26 26
Other receivables 72 198
Total non-current assets 7,168 6,353
Current assets
Inventories 15 1,795 1,181
Trade and other receivables 16 6,774 5,718
Cash and cash equivalents 17 801 1,464
Assets held for sale 33 271 271
Total current assets 9,641 8,634
Total assets 16,809 14,987
Liabilities
Current liabilities
Other financial liabilities 18 659 822
Trade and other payables 19 3,870 3,352
Provisions 20 142 190
Current tax liabilities 21 682 405
Total current liabilities 5,353 4,769
Non-current liabilities
Other financial liabilities 22 1,331 1,026
Deferred tax liabilities 23 144 146
Total non-current liabilities 1,475 1,172
Total liabilities 6,828 5,941
Net assets 9,981 9,046
Equity
Share capital 26 1,481 1,452
Share premium account 27 1,254 1,170
Capital redemption reserve 27 94 94
Other non-distributable reserve 27 766 766
Reserve for own shares 27 (322) –
Share scheme reserve 27 26 9
Foreign exchange reserve 27 36 (39)
Retained earnings 27 6,475 5,396
Equity attributable to equity holders of 
the parent company 9,810 8,848
Minority Interest 171 198
Total equity 9,981 9,046
The financial statements were approved and authorised by the Board on 20 May 2008.
Peter L Hay
Director
The notes shown on pages 20 to 47 form part of these financial statements.
77354 Accounts  19/5/08  20:05  Page 17 Consolidated Cash Flow Statement
for the year ended 31 December 2007
N OR M A N H AY P L C
18
2007 2006
Cash flows from operating activities Note £000 £000
Operating profit before non-recurring items 2,395 2,068
Impairment of intangibles 15 8
Depreciation 383 476
Loss/(profit) on sale of assets 38 (78)
Share option charge 17 9
(Increase)/decrease in inventories (515) 195
(Increase)/decrease in receivables (864) 543
Increase/(decrease) in payables 167 (739)
Increase in provisions 48 21
Finance income 190 193
Finance costs (243) (214)
Tax paid (414) (333)
Net cash generated from operating activities 1,217 2,149
Cash flows from investing activities
Acquisition of subsidiaries net of cash acquired 28 (383) (1,757)
Purchase of property, plant and equipment (847) (269)
Expenditure on intangibles (15) –
Proceeds from sale of business – 17
Net borrowing disposed of with subsidiary undertaking – 134
Proceeds from disposal of property, plant and equipment 18 836
Net cash used in investing activities (1,227) (1,039)
Cash flows from financing activities
Dividends paid to shareholders (554) (407)
Dividends paid to minority shareholders – (38)
Net proceeds from issue of ordinary share capital 112 – 
Purchase of long term incentive plan shares (322) –
Finance lease repayment (31) (62)
New loans raised 581 – 
Repayment of loans (546) (50)
Net cash used in financing activities (760) (557)
Net (decrease)/increase in cash and cash equivalents (770) 553
Cash and cash equivalents at the beginning of the year 1,264 711
Effects of foreign exchange rate changes 47 –
Cash and cash equivalents at the end of the year 17 541 1,264
The notes shown on pages 20 to 47 form part of these financial statements.
77354 Accounts  19/5/08  20:05  Page 18 A NNUAL R EP ORT 20 07
Consolidated Statement of 
Recognised Income and Expense
for the year ended 31 December 2007
19
2007 2006
£000 £000
Exchange differences on translation of foreign operations 75 (38)
Deferred tax movements in respect of share option scheme (4) 6
Net income recognised directly in equity 71 (32)
Profit for the year 1,670 1,601
Total recognised income and expense for the year 1,741 1,569
Attributable to:
Equity shareholders 1,708 1,543
Minority interests 33 26
1,741 1,569
77354 Accounts  19/5/08  20:05  Page 19 Notes to the Group Financial Statements
N OR M A N H AY P L C
20
1  Accounting policies
Accounting convention
The Group previously reported its financial statements under UK Generally Accepted Accounting Practice (GAAP). From 
1 January 2007 the Group is required to prepare its financial statements in accordance with EU endorsed International
Financial Reporting Standards (IFRS), International Accounting Standards (IAS) and Interpretations (IFRIC and SIC), (“Endorsed
IFRS”) and , with those parts of the Companies Act 198 to 5 companies preparing financial statements in accordance with IFRS.
The comparative data for year ended 31 December 2006 has been restated and reconciliations are included in Note 33 to
explain the changes. 
The parent Company has not adopted International Financial Reporting Standards. Its results are reported under UK GAAP 
on pages 48 to 56.
First time adoption of IFRS
The Group’s transition date to “Endorsed IFRS” was 1 January 2006, which is the beginning of the comparative period for the
year ended 31 December 2007. The Group has applied IFRS 1 for the first time adoption of Endorsed IFRS, and has elected to
use the following exemptions:
● IFRS 3 has not been applied retrospectively to business combinations that occurred before 1 January 2006.
● Cumulative translation differences for foreign operations have been deemed to be nil at 1 January 2006. Consequently 
any gain or loss arising on a subsequent disposal will exclude translation differences that arose before 1 January 2006.
● IFRS 2 has not been applied to options in issue, which were granted prior to 7 November 2002.
Standards, interpretations and amendments to published standards not yet effective
Certain new standards, amendments and interpretations to existing standards have been published that are mandatory for
the Group’s accounting periods beginning on or after 1 January 2008 or later periods and which the Group has decided not to
adopt early. These are:
● IFRS 8, Operating Segments (effective for accounting periods beginning on or after 1 January 2009). This standard sets out
requirements for the disclosure of information about an entity’s operating segments and also about the entity’s products
and services, the geographical areas in which it operates, and its major customers. It replaces IAS 14, Segmental Reporting.
The Group expects to apply this standard in the period beginning on 1 January 2009. As this is a disclosure standard, it will
not have any impact on the results or net assets of the Group.
● IFRS 3, Business combinations and complementary amendments to IAS 27, Consolidated and separate financial statements
(Both effective for accounting periods on or after 1 July 2009). This revised standard and amendments are still to be endorsed
by the EU. The revised IFRS 3 and amendments to IAS 27 arise from a joint project with the Financial Accounting Standards
Board (FASB), the US standards setter, and result in IFRS being largely converged with the related, recently issued, US
requirements. There are very significant changes to the requirements of IFRS, and options available, if accounting for
business combinations. Management is currently assessing the impact of revised IFRS 3 and amendments to IAS 27 on 
the financial statements.
● IAS 1, Presentation of Financial Statements – a revised approach (effective for accounting periods beginning on or after 
1 January 2009). As this is a disclosure standard, it will not have any impact on the results or net assets of the Group. 
It will impact the presentation and format of the primary statements and notes and these disclosures will be revised
accordingly in the 2009 financial statements.
77354 Accounts  19/5/08  20:05  Page 20 A NNUAL R EP ORT 20 07
21
1  Accounting policies (continued)
The following are also standards, interpretations and amendments to published statements not yet effective, but which are
not considered to be relevant to the Group.
● IAS 23, Borrowing costs (Revised) (effective for accounting periods beginning on or after 1 January 2009);
● IFRIC 11, IFRS 2, Group and Treasury Share Transactions (effective for periods beginning on or after 1 March 2007);
● IFRIC 12, Service Concession Arrangements (effective for periods beginning on or after 1 January 2008);
● IFRIC 13, Customer Loyalty Programmes (effective for periods beginning on or after 1 July 2008);
● IFRIC 14, IAS 19, The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction (effective for
periods beginning on or after 1 January 2008);
● Amendments to IAS 32, Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements – Puttable
Financial Instruments and Obligations Arising on Liquidation (effective for accounting periods beginning on or after
1 January 2009).
The following principal accounting policies have been applied:
Basis of consolidation
Subsidiaries are entities controlled by the Company. Control exists where the Company has the power, directly or indirectly, to
govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiaries
are included in the consolidated financial statements from the date that control commences until the date that control ceases.
Acquisitions are accounted for by the purchase method. The cost of an acquisition is measured as the fair value at the date of
exchange of the consideration provided plus costs directly attributable to the acquisition. Identifiable assets and liabilities of
the acquired business that meet the conditions for recognition under IFRS 3 are recognised at their fair value at the date 
of acquisition. To the extent that the cost of an acquisition exceeds the fair value of the net assets acquired the difference 
is recorded as goodwill. 
Transactions between and balances with Group companies are eliminated together with unrealised gains on inter-company
transactions. Accounting policies of acquired companies are changed where necessary to be consistent with those of the Group.
Revenue
Revenue is recognised when performance has occurred and a right to consideration has been obtained. This is normally
when goods have been delivered or services provided to the customer, title and risk of loss have been transferred and
collection of related receivables is probable. Revenue excludes value added and other sales taxes, trade discounts and
intra-group sales.
Long-term contracts are assessed on a contract-by-contract basis. Where the outcome of a long term contract can be estimated
reliably, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity (the
percentage of completion method) at the balance sheet date and profit that is estimated to fairly reflect the profit arising up
to that date. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised 
as an expense immediately.
77354 Accounts  19/5/08  20:05  Page 21 Notes to the Group Financial Statements continued
N OR M A N H AY P L C
22
1  Accounting policies (continued)
Research and development
Expenditure on applied research and development is charged to the Income Statement in the year in which it is incurred,
unless such costs should be capitalised under the requirements of the applicable standard. No development projects met the
criteria for capitalisation.
Dividends
The final dividend is only recognised at the point it is declared and approved by the shareholders at the Annual General
Meeting. Interim dividends are recognised on payment.
Intangible assets
Goodwill
Goodwill arising on an acquisition of an undertaking is the difference between the fair value of the consideration paid 
and the fair value of the assets and liabilities acquired. Goodwill which is recognised as an asset is reviewed for impairment
at least annually. Any impairment is recognised immediately in the Income Statement and is not subsequently reversed. 
For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash generating units expected to benefit from
the synergies of combination. Cash generating units to which goodwill has been allocated are tested for impairment annually, or
more frequently where there is an indication that the unit may be impaired. If the recoverable amount of the cash generating unit
is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill
allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. 
On disposal of a subsidiary the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
Goodwill arising on acquisitions before the date of transition to IFRS (1 January 2006) has been retained at the previous UK
GAAP amounts subject to being tested for impairment as noted. Goodwill written off to reserves under UK GAAP prior 
to 1998 has not been re-instated and is not included in determining any subsequent profit or loss on disposal.
Other intangible assets
Separable intangible assets, such as trademarks, licences and brands are recognised separately from goodwill on all
acquisitions after the date of transition. Brands identified have been assessed as having an indefinite useful life when coupled
with continuing marketing spend to maintain the brand.
Under IFRS all intangible assets with indefinite lives are reviewed for impairment on an annual basis.
Property, plant and equipment
Property, plant and equipment is held at cost less accumulated depreciation, although some assets are carried at deemed cost,
being the carrying value of freehold land and buildings as at 31 December 1999. All additions since this date are stated at cost.
Depreciation is provided on property, plant and equipment, other than freehold land and plant in the course of construction, 
at rates calculated to write off the cost or deemed cost, less estimated residual value of each asset, evenly over its expected
useful life as follows:
Freehold buildings 45 years
Long leasehold property Over term of lease
Plant, vehicles and fixtures 3 to 10 years
Computer equipment 2 to 5 years
Impairment tests on the carrying value of property, plant and equipment are undertaken at the end of each year if events 
or changes in circumstances indicate that the carrying value may not be recoverable.
77354 Accounts  19/5/08  20:05  Page 22 A NNUAL R EP ORT 20 07
23
1  Accounting policies (continued)
Investments available for sale
Investments available for sale are recorded at fair value. Unrealised gains and losses arising on the re-measurement are recorded
in equity. On disposal or impairment of the investments, cumulative gains and losses previously recognised in equity are
transferred to the Income Statement.
Non-current assets held for sale
Non-current assets classified as held for sale are measured at the lower of the carrying value and the fair value less costs to sell.
Non-current assets are classified as held for sale if their carrying value will be recovered through the sale transaction rather
than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset is available
for immediate sale in its present condition and management is committed to the sale, which is expected to qualify for
recognition as a completed sale within one year from the date of recognition.
Inventories
Inventories are valued at the lower of cost on a first-in, first-out basis, and net realisable value. Costs incurred in bringing each
product to its present location and condition comprise:
● Raw materials – cost of purchase on a first-in, first-out basis.
● Work in progress and finished goods – cost of raw materials and labour plus attributable overheads based on the normal
level of activity.
● Net realisable value is based on estimated selling price less further costs to completion and disposal.
● Provision is made for obsolete and slow moving items.
Trade receivables 
Trade receivables are stated initially at fair value then measured at amortised cost less allowances for provisions. Provisions for
impairment are recognised when there is objective evidence that the Group will not be able to collect all amounts due according to
the original terms of the receivable. Any impairment recorded is the difference between the carrying value of the receivables and
the estimated future cash flows discounted where appropriate. Any impairment required is recorded in the Income Statement.
Leased assets
Assets held under leasing agreements and hire purchase contracts, where the Group has substantially all the risks and rewards
of ownership (“finance leases”), are treated as if they had been purchased outright. The amount capitalised is the present
value of the minimum lease payments payable during the lease term. The corresponding leasing commitments are shown as
borrowings. Depreciation over the shorter of the assets’ useful life and the lease term on the relevant assets is charged to the
Income Statement.
Lease payments are analysed between capital and interest components so that the interest element of the payment is 
charged to the Income Statement over the period of the lease and represents a constant proportion of the balance of capital
repayments outstanding. The capital part reduces the amount payable to the lessor.
All other leases are treated as operating leases. Their annual rentals are charged to the Income Statement on a straight-line
basis over the term of the lease.
Borrowings
Borrowings are recognised initially at their fair value, net of the associated finance costs, and thereafter at amortised cost. 
The associated finance costs are amortised to the Income Statement over the life of the borrowings. Borrowings are classified
as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least twelve months
after the Balance Sheet date. 
77354 Accounts  19/5/08  20:05  Page 23 Notes to the Group Financial Statements continued
N OR M A N H AY P L C
24
1  Accounting policies (continued)
Provisions
Provision is made for onerous contracts and for product warranty claims when the Group has a present obligation as a result
of past events, and it is more likely than not that an outflow of economic benefits will be required to settle the obligation, 
and the amount can be reliably estimated. Provisions are discounted to present value where the impact is significant, using 
a discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation.
Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits at call with banks, and other short term highly liquid investments
that are readily convertible to a known amount of cash and are considered to be subject to insignificant risk of changes in
value. Bank overdrafts are shown within borrowings as current liabilities, but included within cash and cash equivalents 
in the Cash Flow Statement.
Foreign currency translation
Functional and presentation currency
The consolidated financial statements are presented in Sterling, which is the Company’s functional and presentation currency.
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (the functional currency).
Transactions and balances
Transactions in foreign currencies are translated into the functional currency of the transacting entity at the foreign exchange
rate ruling at the date of the transaction. Foreign exchange difference arising are recognised in the Income Statement. Foreign
currency monetary assets and liabilities are translated at the exchange rates ruling at the Balance Sheet date.
Group companies
The results of foreign operations are translated into Sterling at the average rate of exchange in the accounting period, and the
assets and liabilities are translated into Sterling at the closing rate at the date of the Balance Sheet. On consolidation the
effect of variances in exchange rates between the beginning and end of the financial year on the opening net investment in
foreign undertakings are taken to the foreign exchange reserve, as are any exchange differences arising through the translation
of results using the average exchange rate.
Current and deferred taxation
The tax expense represents the sum of the tax currently payable on the profit for the year, and the deferred tax. Provision 
for taxation is made using tax rates that have been enacted or substantively enacted at the Balance Sheet date. 
Deferred tax is provided in full using the Balance Sheet liability method in respect of temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Except for
differences arising on:
● the initial recognition of goodwill;
● the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the
transaction affects neither accounting nor taxable profit; and
● investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the reversal of
the difference and it is probable that the difference will not reverse in the foreseeable future.
Deferred taxation is calculated using tax rates that are expected to apply when the related deferred taxation asset is realised
or the related deferred taxation liability is settled.
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 are available to allow all or part of the asset to be recovered.
77354 Accounts  19/5/08  20:05  Page 24 A NNUAL R EP ORT 20 07
25
1  Accounting policies (continued)
Employee benefit costs
Share based payments
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the Income
Statement over the vesting period. Non-market vesting conditions are taken into account by adjusting the number 
of equity instruments expected to vest at each Balance Sheet date so that, ultimately, the cumulative amount recognised 
over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into 
the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of
whether the market vesting conditions are satisfied. 
Pensions
Contributions to the Group’s defined contribution scheme and to State-managed retirement benefit schemes are charged 
to the Income Statement in the year in which they become payable. 
Critical accounting estimates and judgments
In applying the Group’s accounting policies set out above management is required to make certain estimates and judgments
concerning the future. These judgments are regularly reviewed and updated as necessary. The estimates and judgments that
have the most significant effect on the amounts included in these consolidated financial statements are as follows:
Intangible assets and impairment
The Group is required to test whether goodwill and brands have suffered any impairment. The recoverable amounts of cash
generating units connected to the recorded goodwill and brands have been determined based on value-in-use estimations. 
Revenue recognition – long term contracts
In applying the Group’s accounting policy set out above, if the outcome of a long term contract can be estimated reliably,
contract revenue is recognised by reference to the stage of completion of the contract activity. These are regularly reviewed
and updated, the actual result could vary from the value used in the Income Statement. However, as these are reviewed on a
monthly basis any difference is not expected to be significant.
Deferred consideration 
Included within assets is an amount of £135,000 (2006: £246,000) due in respect of deferred consideration following the
disposal of the sub-contract impregnation business in 2005. The deferred consideration is calculated based on a percentage
of future revenues of the business which was disposed of, and therefore cannot be estimated with certainty. The amount
recognised in the financial statements is the discounted value of estimated revenues based on a linear projection of
current revenues.
2  Segmental analysis
By primary segment — business group
For management purposes the Group is organised into four main operating divisions. These divisions are the basis on which
the Group reports its primary segment information. The principal activities are as follows:
Surface coating: Application of a range of surface coatings to customers’ products
Automotive sealants: Sealants for use in the engineering industry to counter micro-porosity
Construction sealants: Chemicals for use in the construction industry to prevent the ingress of water and to improve
structure integrity
Plant manufacture: Manufacture of a range of chemical processing plant and equipment
77354 Accounts  19/5/08  20:05  Page 25 Notes to the Group Financial Statements continued
N OR M A N H AY P L C
26
2  Segmental analysis (continued)
Segment information about these businesses is presented below.
Year ended 31 December 2007
Automotive Construction Surface Plant Eliminations Consolidated
sealants sealants coatings manufacture
Revenue
External sales 5,008 4,255 9,342 5,354 – 23,959
Inter-segment sales 22 1 – 362 (385) –
Total revenue 5,030 4,256 9,342 5,716 (385) 23,959
Segment result 1,552 43 1,701 210 – 3,506
Unallocated corporate expenses (1,111)
Operating profit 2,395
Finance income 190
Finance costs (243)
Profit before tax 2,342
Tax (672)
Profit after tax 1,670
Other information
Automotive Construction Surface Plant Corporate Consolidated
sealants sealants coating manufacture assets
Capital additions including
intangibles and acquisitions 19 252 1,044 62 46 1,423
Depreciation 59 51 202 32 39 383
Impairment losses recognised
in income – – 15 – – 15
Balance Sheet
Segment assets 3,827 4,293 5,397 2,744 548 16,809
Segment liabilities 841 703 938 1,385 2,961 6,828
Segment net assets/(liabilities) 2,986 3,590 4,459 1,359 (2,413) 9,981
Segment assets include tangible assets, intangible assets, investments, inventory, receivables, other than tax and inter-company
receivables and cash net of operating overdrafts in each segment. Segment liabilities for operating segments include trade and
other payables and provisions. Corporate liabilities also include tax payable and other current and non-current liabilities.
77354 Accounts  19/5/08  20:05  Page 26 A NNUAL R EP ORT 20 07
27
2  Segmental analysis (continued)
Year ended 31 December 2006
Automotive Construction Surface Plant Eliminations Consolidated
sealants sealants coating manufacture
Revenue
External sales 5,304 – 8,705 6,241 – 20,250
Inter-segment sales 28 – 9 395 (432) – 
Total revenue 5,332 – 8,714 6,636 (432) 20,250 
Segment result 1,589 – 1,156 127 – 2,872
Unallocated corporate expenses (804)
Operating profit before non-recurring items 2,068
Other gains and losses 127
Finance income 193
Finance costs (214)
Profit before tax 2,174
Tax (573)
Profit after tax 1,601
Other information
Automotive Construction Surface Plant Corporate Consolidated
sealants sealants coating manufacture assets
Capital additions including
intangibles and acquisitions 36 1,389 124 68 41 1,658
Depreciation 59 – 255 121 41 476
Impairment losses recognised
in income – – 8 – – 8
Balance Sheet
Segment assets 2,875 3,328 4,934 2,084 1,766 14,987
Segment liabilities 756 352 1,124 1,196 2,513 5,941
Segment net assets/(liabilities) 2,119 2,976 3,810 888 (747) 9,046
Segment assets include tangible assets, intangible assets, investments, inventory, receivables, other than tax and inter-company
receivables and cash net of operating overdrafts in each segment. Segment liabilities for operating segments include trade and
other payables and provisions. Corporate liabilities also include tax payable and other current and non-current liabilities.
77354 Accounts  19/5/08  20:05  Page 27 Notes to the Group Financial Statements continued
N OR M A N H AY P L C
28
2  Segmental analysis (continued)
By secondary segment – geographical
The analysis of revenue by location of customer is as follows: 2007 2006
£000 £000
United Kingdom 13,875 13,279
Rest of Europe 3,912 3,591
USA 1,094 1,501
Asia/Pacific 4,736 79
Rest of the World 342 1,800
23,959 20,250
The analysis of assets by location is as follows: 2007 2006
£000 £000
United Kingdom 12,799 12,337
USA 533 436
Asia/Pacific 3,477 2,214
16,809 14,987
Additions to property, plant and equipment and intangible assets 2007 2006
£000 £000
United Kingdom 974 1,651
USA 4 2
Asia/Pacific 445 5
1,423 1,658
3  Operating profit 2007 2006
£000 £000
This is stated after charging:
Impairment of intangible assets 15 8
Depreciation of tangible fixed assets 383 476
Auditors’ remuneration – fees payable to the Company’s auditors for the
audit of the Company’s annual accounts 6 6
– fees payable to the Company’s auditors and  its
associates for other services:
The audit of the Company’s subsidiaries, pursuant
to legislation 65 41
Taxation services 17 40
Remuneration services 4 17
Other 12 –
Cost of inventories recognised as an expense 9,478 6,187
Research and development 180 198
Operating lease rentals – plant and machinery 106 113
– properties 60 148
Share option expense 17 9
77354 Accounts  19/5/08  20:05  Page 28 A NNUAL R EP ORT 20 07
29
4  Profit on sale of assets
2007 2006
£000 £000
Plasticraft Ltd property – 417
5  Loss on sale of business
2007 2006
£000 £000
Profit on sale of impregnation business and assets – 100
Loss on sale of BK Engineering Ltd – (390)
– (290)
6  Finance income
2007 2006
£000 £000
Interest on bank deposits 190 193
7  Finance costs
2007 2006
£000 £000
Interest on bank loans and overdrafts 239 200
Hire purchase interest 4 14
243 214
8  Employees
2007 2006
Number Number
The average number of employees, including Executive Directors, during the year comprised:
Office and management 140 103
Manufacturing 152 162
292 265
£000 £000
Staff costs, including Executive Directors, during the year amounted to:
Wages and salaries 6,884 5,952
Social security costs 621 633
Other pension costs (Note 29) 387 315
Share option expense 17 9
7,909 6,909
77354 Accounts  19/5/08  20:05  Page 29 Notes to the Group Financial Statements continued
N OR M A N H AY P L C
30
9  Taxation
2007 2006
£000 £000
UK Corporation Tax – charge for the year 679 509
– adjustment in respect of previous periods (34) 12
Current tax on foreign income for the year 45 2
690 523
Deferred tax – Transfer (from)/to deferred tax account (41) 50
– Adjustment in respect of previous periods 23 –
672 573
The tax assessed in the year is lower than the standard rate of corporation tax in the UK.
The difference is explained below: 2007 2006
£000 £000
Tax on profit on ordinary activities at the standard rate of 
corporation tax in the UK of 30% (2006: 30%) 703 652
Expenses not deductible for tax purposes 60 70
Prior year adjustments in deferred tax 23 – 
Utilisation of tax losses – (143)
Chargeable gains – 18
Income not taxable for tax purposes (72) (45)
Unrelieved tax losses – 13
Marginal relief (2) (4)
Effect of changes in tax rates (5) – 
Effect of different tax rates of subsidiaries in other jurisdictions (1) – 
Adjustment in respect of previous periods (34) 12
Total tax charge for the year 672 573
On 6 April 2008 the rate of corporation tax changed from 30% to 28%. This will affect future years’ tax charges.
10  Dividends
2007 2006
£000 £000
Final dividend paid of 2.0p (2006: 1.5p) per share 261 218
Interim dividend paid of 1.8p (2006: 1.3p) per share 293 189
554 407
Dividends declared after the balance sheet date but before approval of
financial statements of 2.6p (2006: 2.0p) per share 378 290
77354 Accounts  19/5/08  20:05  Page 30 A NNUAL R EP ORT 20 07
31
11  Earnings per ordinary share
2007 2006
£000 £000
Profit on ordinary activities after tax 1,637 1,575
Basic earnings per ordinary share Number Number
000s 000s
Weighted average number of ordinary shares in issue 14,306 14,524
Earnings per share 11.4p 10.8p
Diluted earnings per share Number Number
000s 000s
Weighted average number of ordinary shares in issue including relevant share options 14,356 14,733
Earnings per share 11.4p 10.7p
12  Intangible Assets
Brands Goodwill Total
Cost or valuation £000 £000 £000
At 1 January 2006 – 887 887
Additions 500 808 1,308
Disposals – (152) (152)
At 1 January 2007 500 1,543 2,043
Additions – 79 15
Acquisition of subsidiary – 337 401
Foreign exchange differences – 31 31
At 31 December 2007 500 1,990 2,490
Amortisation
At 1 January 2006 – – –
Impairment provision – 8 8
At 1 January 2007 – 8 8
Impairment provision – 15 15
Foreign exchange differences – 30 30
At 31 December 2007 – 53 53
Net book value
At 31 December 2007 500 1,937 2,437
At 1 January 2007 500 1,535 2,035
At 1 January 2006 – 887 887
77354 Accounts  19/5/08  20:05  Page 31 Notes to the Group Financial Statements continued
N OR M A N H AY P L C
32
12  Intangible Assets (continued)
Impairment of goodwill and brands
The recoverable amount of each cash generating unit (CGU) connected to the brand’s value has been determined from 
value-in-use calculations based on cashflow projections covering a ten year period to 31 December 2017.
Operating margins have been based on past experience and future expectations in the light of anticipated economic and 
market conditions. Discount rates are based on the Group’s current conservative assessment of specific risks related to 
the CGU.
MX Applied
TAM Systems Precision Hi-Tech
International International Coatings Coatings
Discount rate 20% 20% 20% 20%
£000 £000 £000 £000
Goodwill 838 475 315 309
Brands 500 – – –
Excess of recoverable amount above carrying values of CGUs 836 1,230 587 406
13  Property, plant and equipment
Freehold Long leasehold Plant, 
land and land and vehicles and
buildings buildings fixtures Computers Total
Cost £000 £000 £000 £000 £000
At 1 January 2006 3,570 552 5,928 475 10,525
Additions 41 – 161 67 269
Acquisition of subsidiary – – 80 1 81
Exchange differences – – 9 (9) – 
Disposals (275) (4) (1,707) (32) (2,018)
Re-classified as held for sale (271) – – – (271)
Disposal of subsidiary (1,072) (90) (1,162)
At 1 January 2007 3,065 548 3,399 412 7,424
Additions – 27 822 54 903
Acquisition of subsidiary – 3 101 – 104
Exchange differences – (1) 12 – 11
Re-classified – – (14) 14 – 
Disposals – – (283) (126) (409)
At 31 December 2007 3,065 577 4,037 354 8,033
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33
13  Property, plant and equipment (continued)
Freehold Long leasehold Plant, 
land and land and vehicles and
buildings buildings fixtures Computers Total
Depreciation £000 £000 £000 £000 £000
At 1 January 2006 490 63 4,310 390 5,253
Provided during the year 40 15 380 41 476
Exchange differences – – 9 (9) – 
Disposals (53) – (1,570) (17) (1,640)
Disposal of subsidiary – – (671) (88) (759)
At 1 January 2007 477 78 2,458 317 3,330
Provided during the year 30 18 285 50 383
Acquisition of subsidiary – 1 38 – 39 
Exchange differences – – 1 – 1
Re-classified – – (7) 7 –
Disposals – – (229) (124) (353)
At 31 December 2007 507 97 2,546 250 3,400
Net book value
At 31 December 2007 2,558 480 1,491 104 4,633
At 1 January 2007 2,588 470 941 95 4,094
At 1 January 2006 3,080 489 1,618 85 5,272
The net book value of plant, vehicles and fixtures includes £62,000 (2006: £7,000) in respect of assets held under finance
leases and hire purchase contracts.
Depreciation charged on these assets amounted to £10,000 (2006: £24,000) .
14  Investments
£000
Other investments 26
At 1 January 2007 and at 31 December 2007.
There is no material change in the fair value of the Group’s investments.
15  Inventories
2007 2006
£000 £000
Raw materials and consumables 861 358
Work in progress – 21
Long term contract balances 140 39
Finished goods 794 763
1,795 1,181
Long term contract balances comprise:
Net costs less foreseeable losses 140 39
Payments on account (64) –
76 39
77354 Accounts  19/5/08  20:05  Page 33 Notes to the Group Financial Statements continued
N OR M A N H AY P L C
34
16  Trade and other receivables
2007 2006
£000 £000
Amounts receivable for sale of goods 5,580 3,576
Allowance for doubtful debts (148) (188)
Trade receivables 5,432 3,388
Amounts due from contract customers 826 1,358 
Other receivables 110 279
Prepayments and accrued income 406 693
6,774 5,718
The carrying values of the Group’s trade and other receivables are denominated in the following currencies:
2007 2006
£000 £000
Sterling 4,696 4,708
Euros 781 36
US dollars 134 150
Hong Kong dollars 161 109
Singapore dollars 575 511
Australian dollars 254 168
Other currencies 173 36
6,774 5,718
At 31 December 2007 trade and contract receivables of £346,000 (2006: £222,000) were past due but not impaired. They relate 
to customers with no default history. The ageing of these receivables is as follows:
2007 2006
£000 £000
3 to 6 months 346 222
346 222
At 31 December 2007 trade receivables of £198,000 (2006: £179,000) were past due and impaired.
The receivables relate to various trading activities of the Group. The ageing of these receivables is as follows:
2007 2006
£000 £000
Up to 3 months 85 56
3 to 6 months 113 123
198 179
The Group records impairment losses on its trade receivables separately from gross receivables. The movements on this
allowance account during the year are as follows:
2007 2006
£000 £000
Opening balance 188 99
Acquisition of subsidiary – 62
Increases in provisions 73 63
Amounts utilised (20) (4)
Amounts released (97) (32)
Foreign exchange differences arising 4 –
148 188
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35
17  Cash and cash equivalents
2007 2006
£000 £000
Cash 801 1,464
Within the cash flow statement, the cash and cash equivalents line includes bank overdrafts of £260,000 (2006: £200,000).
The currency distribution of cash and cash equivalents at 31 December was as follows:
2007 2006
£000 £000
Sterling 148 1,090
Euros – 75
US dollars 332 150
Singapore dollars 110 –
Australian dollars 132 95
Other currencies 79 54
801 1,464
18  Current other financial liabilities
2007 2006
£000 £000
Bank overdraft (secured) 260 200
Bank loans (secured) 200 200
Finance lease and hire purchase (secured) 25 28
Other loans 174 394
659 822
The bank overdraft and loans are secured over certain of the Group’s assets and undertakings and are denominated in Sterling.
The finance leases and hire purchase agreement are secured on the assets to which they relate.
The currency distribution of current financial liabilities at 31 December was as follows:
2007 2006
£000 £000
Sterling 460 205
Hong Kong dollars 2 244
Singapore dollars 3 200
Australian dollars 194 173
659 822
19  Trade and other payables
2007 2006
£000 £000
Trade payables 1,971 1,613
Amounts due to contract customers 64 – 
Other taxation and social security costs 456 624
Other payables 258 57
Accruals and deferred income 1,121 1,058
3,870 3,352
77354 Accounts  19/5/08  20:05  Page 35 Notes to the Group Financial Statements continued
N OR M A N H AY P L C
36
20  Provisions 2007
Total
£000
At 1 January 2007 190
Release of provision in the year (25)
Utilisation of provision (23)
At 31 December 2007 142
All of the above amount is included within current liabilities.
The warranty provisions relate to the process plant manufacturing operation. The standard terms of the warranty are one 
to two years.
21  Current tax liabilities 2007 2006
£000 £000
UK corporation tax 538 328
Foreign tax 144 77
682 405
22  Non-current other financial liabilities 2007 2006
£000 £000
Bank loans (secured) 750 950
Other loans 540 76
Finance leases and hire purchase (secured) 41 – 
1,331 1,026
The currency distribution of non-current financial liabilities at 31 December was as follows:
2007 2006
£000 £000
Sterling 773 950
US dollars 75 76
Hong Kong dollars 446 –
Australian dollars 34 –
Other currencies 3 –
1,331 1,026
Maturity of debt Loans & overdrafts Finance leases
2007 2006 2007 2006
£000 £000 £000 £000
In one year or less 645 812 31 29
In more than one year but not more than two years 807 218 25 – 
In more than two years but not more than five years 666 908 17 – 
2,118 1,938 73 29
The bank loans are repayable by equal monthly instalments and interest is payable at 1.25% above bank base rate. The
repayment figures include capital and interest.
The above analysis assumes no movement in base rate.
77354 Accounts  19/5/08  20:05  Page 36 A NNUAL R EP ORT 20 07
37
23  Non-current tax liabilities
The amount of deferred taxation provided, which relates to accumulated depreciation being lower than accumulated capital
allowances, and other temporary differences, is as follows:
Accelerated
capital Temporary
allowances differences
2007 2007 2007
£000 £000 £000
At 1 January 2007 178 (32) 146
Credit to Income Statement (14) (4) (18)
Acquired with subsidiary 15 – 15
Other movements 1 – 1
At 31 December 2007 180 (36) 144
Deferred tax assets have been recognised in respect of all such tax losses and other temporary differences giving rise to
deferred tax assets where the Directors believe it is probable that the assets will be recovered.
Accelerated
capital Temporary
allowances differences
2006 2006 2006
£000 £000 £000
At 1 January 2006 193 (24) 169
Charge to Income Statement 50 – 50
Disposal of subsidiary (65) – (65)
Charged to equity – (8) (8)
At 31 December 2006 178 (32) 146
24  Obligations under finance leases
Present value of
Amounts payable under finance leases: Minimum lease payments minimum lease payments
2007 2006 2007 2006
£000 £000 £000 £000
Within one year 31 29 30 28
In the second to the fifth year inclusive 42 – 36 – 
73 29 66 28
Less future finance charges (7) (1) – – 
Present value of lease obligations 66 28 66 28
Less amount due for settlement within 12 months 
(shown under current liabilities) (25) (28)
Amount due for settlement after 12 months 41 – 
77354 Accounts  19/5/08  20:05  Page 37 Notes to the Group Financial Statements continued
N OR M A N H AY P L C
38
25  Total commitments under operating leases
Land and buildings Plant
2007 2006 2007 2006
£000 £000 £000 £000
Payable in one year 74 103 90 85
Payable in two to five years 386 179 84 131
Payable after five years 1,718 1,742 – –
2,178 2,024 174 216
26  Share capital
2007 2006
Number Value Number Value
000 £000 000 £000
Authorised – ordinary shares of 10p each 18,000 1,800 18,000 1,800
Allotted and fully paid – ordinary shares of 10p each 14,812 1,481 14,524 1,452
The Group issued 287,750 shares following the exercise of share options, resulting in a total number of shares in issue at
31 December 2007, of 14,811,750. The consideration for these shares amounted to £111,656.
The Group considers its capital to comprise its ordinary share capital, share premium and accumulated retained earnings. In
managing its capital the Group’s primary objective is to ensure its continued ability to provide a consistent return for its equity
shareholders through a combination of capital growth and distributions. 
In order to achieve this objective, the Group monitors its gearing to balance risks and returns at an acceptable level and also 
to maintain a sufficient funding base to enable the Group to meet its working capital and strategic investment needs. In
making decisions to adjust its capital structure to achieve these aims, either through altering its dividend policy, new shares
issues, or the reduction of debt, the Group considers not only its short-term position but also its long-term operational and
strategic objectives.
At 31 December 2007, 266,282 shares were held by the Employee Norman Hay plc  Benefit Trust (2006: nil).
At 31 December 2007 the following options were outstanding, including those relating to Directors, as detailed on page 12
of this Annual Report:
(a)  On 289,850 ordinary shares; these approved options are exercisable between 5 July 2009 and 4 July 2016 at 69p per share.
(b)  On 1,040,150 ordinary shares; these unapproved options are exercisable between 5 July 2006 and 4 July 2016 at 69p per
share upon the share price achieving 250p or a change in control.
77354 Accounts  19/5/08  20:05  Page 38 A NNUAL R EP ORT 20 07
39
27  Analysis of changes in equity
Other non- Total
Share Capital distribu- Reserve Share Foreign share-
Share premium redemption table for own scheme exchange Retained holders Minority Total
capital account reserve reserve shares reserve reserve earnings equity interest equity
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000
At 1 January 2006 1,452 1,170 94 766 – – –4,221 7,703 41 7,744
Share scheme charge – – – – – 9 – – 9 – 9
Acquisition of TAM
International Group
Holdings Ltd – – – – – – – – – 221 221
Retained profit for the year– – – – – – –1,582 1,582 (26) 1,556
Dividends paid in year – – – – – – – (407) (407) (38) (445)
Exchange translation 
differences on 
consolidation – – – – – – (39) – (39) (39)
At 1 January 2007 1,452 1,170 94 766 – 9 (39) 5,396 8,848 198 9,046
Share scheme charge – – – – – 17 – – 17 – 17
Issue of new shares 29 84 – – – – – – 113 – 113
Own shares acquired – – – – (322) – – – (322) – (322)
Minority interest in 
subsidiary acquired – – – – – – – – – (60) (60)
Retained profit for the year– – – – – – –1,637 1,637 33 1,670
Dividends paid in year – – – – – – – (554) (554) – (554)
Deferred tax in respect of 
share options – – – – – – – (4) (4) – (4)
Exchange translation 
differences on 
consolidation – – – – – – 75 – 75 – 75
At 31 December 2007 1,481 1,254 94 766 (322) 26 36 6,475 9,810 171 9,981
Notes
1. The Share premium account represents the difference between the amount paid by shareholders subscribing for new
shares and the nominal value of those shares.
2. The Capital redemption reserve relates to purchases by the Company of its own shares.
3. Other non-distributable reserve arises from elimination of share capital of acquired companies in excess of nominal 
value of shares issued.
4. Reserve for own shares is the sum paid for shares held by the Company’s long term incentive plan.
5. The Foreign exchange reserve arises from fluctuations in the value of net assets denominated in currencies other 
than Sterling.
6. Retained earnings is the accumulated distributable profits of the Norman Hay plc group of companies.
7. Minority interests represents the interests of the minority shareholders in subsidiaries of the Group.
77354 Accounts  19/5/08  20:05  Page 39 Notes to the Group Financial Statements continued
N OR M A N H AY P L C
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28  Acquisitions
In November 2007 Surface Technology plc (a trading subsidiary of Norman Hay plc) acquired the entire share capital of Hi-Tech
Coatings Pty Ltd for £380,000.
This acquisition has provided the Group with the opportunity to expand the Armourcote sub-contract surface coatings service
into the Asia/Pacific region in order to support oil and gas customer operations.
It has not been possible to state the revenue and profit before tax of the Company for the year ended 31 December 2007, as
prior to the acquisition the Company’s financial year end was 30 June 2007.
At the time of acquisition the Company held the following net assets:
Book and
fair value
Non current assets £000
Intangible assets 85
Property, plant and equipment 64
149
Current assets 200
Current liabilities 193
Net assets acquired 156
Cash consideration (including costs on acquisition of £25,000) 405
Net assets acquired (156)
Goodwill arising on acquisition 249
Costs on acquisition include £25,000 paid to auditors and legal advisors.
The net cash sum expended on the acquisition was as follows:
£000
Cash paid as consideration 380
Cash paid as acquisition expenses 25
Less cash acquired on acquisition (123)
282
In addition to the above, a further £101,000 was paid to purchase the minority shareholding in APC Limited.
On 22 December 2006 Norman Hay plc acquired a 75% interest in TAM International Group Holdings Ltd, and its subsidiaries
TAM International UK Ltd, TAM International Hong Kong Ltd, TAM International Singapore Pte, TAM International Australia Pty
for a consideration of £1,816,000. The assets and liabilities are included in the consolidated balance sheet using the acquisition
method of accounting.
The addition of TAM International has strengthened the Group’s diversification by entering the construction and civil
engineering markets and extended our geographical presence through enhanced sales channels leading , to the consideration
paid being in excess of the fair value of the assets acquired.
77354 Accounts  19/5/08  20:05  Page 40 A NNUAL R EP ORT 20 07
41
28  Acquisitions (continued)
It has not been possible to state the revenue and profit before tax of the Company for the year ended 31 December 2006 as 
the TAM Group of Companies did not have co-terminus year ends.
TAM TAM TAM TAM
International International International International
UK Hong Kong Singapore Australia Book &
Ltd Ltd Pte Pty Fair Value
£000 £000 £000 £000 £000
Non current assets
Property, plant and equipment 6 12 1 62 81
Current assets 378 183 679 417 1,657
Current liabilities 288 (109) 335 163 677
Minority interest (169)
Net assets acquired 508
Cash consideration (including expenses of £116,000) 1,816
Net assets acquired (508)
Intangible assets arising on acquisition 1,308
The Directors allocated £500,000 of the intangible assets arising on acquisition to brands with the balance being regarded 
as goodwill.
Costs on acquisition include £32,000 paid to auditors in respect of corporate finance advice.
The net cash sum expended on the acquisition was as follows:
£000
Cash paid as consideration 1,700
Cash paid as acquisition expenses 116
Less cash acquired on acquisition (259)
Loan acquired 200
1,757
29  Pension costs
The Group operates a number of defined contribution pension schemes. The assets of these schemes are held separately from
those of the Group, in independently administered funds. Two Directors are members of the scheme. A pension charge of
£387,000 (2006: £315,000) represents the contribution payable by the Group to those schemes.
30  Related party transactions
Remuneration of key management personnel 2007 2006
Directors’ remuneration consists of: £000 £000
Aggregate emoluments 473 609
Pension contributions 36 41
Compensation for loss of office – 47
Gain on exercise of share options 114 –
Fees 51 –
674 697
The highest paid Director had a salary of £251,000 (2006: £212,000) including performance related pay, benefits in kind, and a
pension contribution of £25,000 (2006: £20,000).
The Company contributed £36,000 (2006: £41,000) towards the personal pension plans of two Directors (2006: three)
including the highest paid director.
The share option expense in respect of key management personnel was £17,000 (2006: £9,000).
77354 Accounts  19/5/08  20:05  Page 41 Notes to the Group Financial Statements continued
N OR M A N H AY P L C
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31  Share-based payment
Norman Hay plc operates two equity-settled share based remuneration schemes for employees: a long term incentive scheme
and an unapproved scheme for Executive Directors and senior management. All UK employees are eligible to participate in 
the long term incentive scheme, the only vesting condition is that the employee remains an employee of the Group over the
savings period.
Under the unapproved scheme, the shares are only exercisable at a share price of 250p or a change in control.
2007 2007 2006 2006
Weighted Weighted
average average
exercise exercise
(pence) Number (pence) Number
Outstanding at the beginning of the year 63 1,617,750 39 287,750 
Granted during the year – – 69 1,330,000 
Exercised during the year 39 (287,750) – –
69 1,330,000 69 1,617,750
The exercise price of options outstanding at the end of the year was 69p (2006: 37.5p 69p). to 
There were no options exercisable at the year end.
The following information is relevant in the determination of the fair values of options granted during 2006 under the share
based remuneration schemes operated by Norman Hay plc.
2007 2006
Equity-settled
Option pricing model used Black-Scholes Black-Scholes
Weighted average share price at grant date (pence) 68 68
Exercise price (pence) 69 69
Weighted average contractual life (days) 1,095 1,095
Expected volatility 20% 20%
Expected dividend growth rate 5% 5%
Risk-free interest rate 5% 5%
Equity-settled
Option pricing model used Monte Carlo Monte Carlo
Weighted average share price at grant date (pence) 68 68
Exercise price (pence) 69 69
Weighted average contractual life (days) 1,095 1,095
Expected volatility 20% 20%
Expected dividend growth rate 5% 5%
Risk-free interest rate 5% 5%
The share based remuneration expense comprises: 2007 2006
£000 £000
Equity-settled schemes 17 9
The volatility assumption, measured at the standard deviation of expected share price returns, is based on a statistical analysis
of daily prices over the last 2 years.
The Group did not enter into any share-based payment transactions with parties other than employees during the current or
previous period.
77354 Accounts  19/5/08  20:05  Page 42 A NNUAL R EP ORT 20 07
43
32  Financial instruments – Risk Management
In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This note
describes the Group’s objectives, policies and processes for managing those risks and the methods used to measure them.
Further quantitative information in respect of these risks is presented throughout these financial statements. There have been
no substantive changes in the Group’s exposure to financial instrument risks, its objectives, policies and processes for
managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.
Principal financial instruments
The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows:
● trade receivables
● cash at bank
● bank overdrafts
● investments in unquoted equity securities (UK and overseas)
● trade and other payables
● floating-rate bank loans
● other loans 
The Directors consider that the carrying amount of trade receivables, trade and other payables and loans approximate to their
fair values.
The Group is exposed through its operations to the following financial risks:
● Credit risk
● Fair value or cash flow interest rate risk
● Foreign exchange risk
● Other market price risk
● Liquidity risk
General ,     objectives     policies      and    processes
The Board has overall responsibility for the determination of the Group’s risk management objectives and policies and, whilst
retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the
effective implementation of the objectives and policies to the Group’s finance function. The Board receives monthly reports
through which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies
it sets. The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting
the Group’s competitiveness and flexibility. Further details regarding these policies are set out below:
Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or a counterparty to a financial instrument fails to meet its
contractual obligations. The Group is mainly exposed to credit risk from credit sales. It is Group policy, implemented locally, 
to assess the credit risk of new customers before entering into contracts. Such credit ratings are taken into account by local
business practices.
The management of each operating business have established credit policies under which each new customer is analysed
individually for creditworthiness before the Group’s standard payment and delivery terms and conditions are offered. Their
review includes external ratings, when available, and in some cases bank references. Purchase limits are established for each
customer, which represent the maximum open amount without requiring approval from senior management or the Group
Chief Executive if appropriate. These limits are reviewed regularly and customers that fail to meet the Group’s benchmark
creditworthiness may transact with the Group on a prepayment basis.
Credit risk also arises from cash and cash equivalents and deposits with banks and financial instruments. Quantitative
disclosures of the credit risk exposure in relation to Trade and other receivables, are disclosed in Note 16. 
77354 Accounts  19/5/08  20:05  Page 43 Notes to the Group Financial Statements continued
N OR M A N H AY P L C
44
32  Financial instruments – Risk Management (continued)
Fair value and cash flow interest rate risk 
The Group is exposed to cash flow interest rate risk from long-term borrowings at variable rates. Local operations are not
permitted to borrow long-term from external sources without permission from the Group. During 2007 and 2006, the Group’s
borrowings at variable rate were denominated in Sterling, Hong Kong dollars and Australian dollars.
Foreign exchange risk 
Foreign exchange risk arises because the Group has operations located in various parts of the world whose functional currency
is not the same as the Group functional currency. Although its global market penetration reduces the Group’s operational risk
in that it has diversified into several markets, the Group’s net assets arising from such overseas operations are exposed to
currency risk resulting in gains or losses on retranslation into Sterling. Foreign exchange risk also arises when individual Group
entities enter into transactions denominated in a currency other than their functional currency.
The Group’s policy is, where possible, to allow Group entities to settle liabilities denominated in their functional currency with
the cash generated from their own operations in that currency.
Market risk
Market risk arises from the Group’s use of interest bearing, tradable and foreign currency financial instruments. It is the risk
that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest
rate risk), foreign exchange rates (currency risk) or other market factors (other price risk).
Liquidity risk
Liquidity risk arises from the Group’s management of working capital and the finance charges and principal repayments on its
debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.
At 31 December 2007 the Group had unused facilities of £1,249,000 (2006: £1,500,000) including the annual working capital
facility of £1,500,000 which was renewed on 2 January 2008.
The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due.
To achieve this aim, it reviews its forward cash requirement on a monthly basis for a minimum of three months ahead. 
The Board receives cash flow projections on a monthly basis as well as information regarding cash balances. At the Balance
Sheet date, these projections indicated that the Group expected to have sufficient liquid resources to meet its obligations
under all reasonably expected circumstances. The liquidity risk of each Group entity is managed centrally by the Group
treasury function. Each operation has a facility with Group treasury, the amount of the facility being based on budgets. The
budgets are set locally and agreed by the Board in advance, enabling the Group’s cash requirements to be anticipated. Where
facilities of Group entities need to be increased, approval must be sought from the Group Chief Executive. Where the amount
of the facility is above a certain level agreement of the Board is needed.
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45
33  IFRS reconciliations
The reconciliations of equity as at 1 January 2006 (date of transition to IFRS) and at 31 December 2006 (date of last
UK GAAP financial statements) and the reconciliation of profit for 2006, as required by IFRS 1, are shown below.
Reconciliation of equity at 1 January 2006 Accounting Tax
effect of effect of
transition transition
UK GAAP to IFRS to IFRS IFRS
Note £000 £000 £000 £000
Assets
Non-current assets
Intangible assets 887 – – 887 
Property, plant and equipment 5,272 – – 5,272 
Investments 26 – – 26 
Total non-current assets 6,185 – – 6,185 
Current assets
Inventories 1,057 – – 1,057 
Trade and other receivables 5,693 – – 5,693 
Cash and cash equivalents 711 – – 711 
Total current assets 7,461 – – 7,461 
Total assets 13,646 – – 13,646 
Liabilities
Current liabilities
Other financial liabilities 282 – – 282 
Trade and other payables 1 4,012 (169) – 3,843 
Provisions 1 – 169 – 169 
Current tax liabilities 239 – – 239 
Total current liabilities 4,533 – – 4,533 
Non-current liabilities
Other financial liabilities 1,200 – – 1,200 
Deferred tax 6 & 7 34 – 135 169 
Total non-current liabilities 1,234 – 135 1,369 
Total liabilities 5,767 – 135 5,902 
Total assets less total liabilities 7,879 – (135) 7,744 
Equity
Share capital 1,452 – – 1,452 
Share premium account 1,170 – – 1,170 
Revaluation reserve 4 545 (545) – – 
Capital redemption reserve 94 – – 94 
Other non-distributable reserve 766 – – 766 
Reserve for own shares – – – 
Foreign exchange reserve – – – 
Retained earnings 4, 6 & 7 3,811 545 (135) 4,221 
Equity attributable to equity holders 
of the parent company 7,838 – (135) 7,703 
Minority interests 41 41 
Total equity 7,879 – (135) 7,744 
77354 Accounts  19/5/08  20:05  Page 45 Notes to the Group Financial Statements continued
N OR M A N H AY P L C
46
33  IFRS reconciliations (continued)
Reconciliation of equity at 31 December 2006 Accounting Tax
effect of effect of
transition transition
UK GAAP to IFRS to IFRS IFRS
Note £000 £000 £000 £000
Assets
Non-current assets
Intangible assets 2 & 3 1,985 50 – 2,035 
Property, plant and equipment 5 4,365 (271) – 4,094 
Investments 26 – 26 
Other receivables 8 – 198 – 198 
Total non-current assets 6,376 (23) – 6,353 
Current assets
Inventories 1,181 – – 1,181 
Trade and other receivables 8 5,916 (198) – 5,718 
Cash and cash equivalents 1,464 – – 1,464 
Assets held for sale 5 – 271 – 271 
Total current assets 8,561 73 – 8,634 
Total assets 14,937 50 – 14,987 
Liabilities
Current liabilities
Other financial liabilities 822 – – 822 
Trade and other payables 1 3,542 (190) – 3,352
Provisions 1 – 190 – 190 
Current tax liabilities 405 – – 405 
Total current liabilities 4,769 – – 4,769 
Non-current liabilities
Other financial liabilities 1,026 – – 1,026 
Deferred tax liabilities 6 & 7 19 – 127 146 
Total non-current liabilities 1,045 – 127 1,172 
Total liabilities 5,814 – 127 5,941 
Total assets less total liabilities 9,123 50 (127) 9,046 
Equity
Share capital 1,452 – – 1,452 
Share premium account 1,170 – – 1,170 
Revaluation reserve 4 538 (538) – – 
Capital redemption reserve 94 – – 94 
Other non distributable - reserve 766 – – 766 
Reserve for own shares – – 
Share scheme reserve 9 – – 9 
Foreign exchange reserve 9 – (39) – (39)
Retained earnings 3, 4 & 9 4,896 627 (127) 5,396 
Equity attributable to equity holders 
of the parent company 8,925 50 (127) 8,848 
Minority interests 198 198 
Total equity 9,123 50 (127) 9,046 
77354 Accounts  19/5/08  20:05  Page 46 A NNUAL R EP ORT 20 07
47
33  IFRS reconciliations (continued)
Reconciliation of the Income Statement to 31 December 2006 Accounting Tax
effect of effect of
transition transition
UK GAAP to IFRS to IFRS IFRS
Note £000 £000 £000 £000
Revenue 20,250 – – 20,250
Cost of sales (12,857) – – (12,857)
Gross profit 7,393 – – 7,393
Distribution expenses (370) – – (370)
Administrative expenses 3 (5,138) 50 – (5,088)
Other operating income 133 – – 133
Operating profit 2,018 50 – 2,068
Profit on sale of assets 417 – – 417
Loss on disposal of business (290) – – (290)
Finance income 193 – – 193
Finance costs (214) – – (214)
Profit on ordinary activities before taxation 2,124 50 – 2,174
Taxation 7 (575) – 2 (573)
Profit on ordinary activities after taxation 1,549 50 2 1,601
Attributable to:
Equity holders of the parent 1,523 50 2 1,575
Minority interest 26 – – 26
Profit for the financial year 1,549 50 2 1,601
Basic earnings per share 10.5p 0.3p – 10.8p
Diluted earnings per share 10.3p 0.4p – 10.7p
Transition notes
1 Provisions were included with ‘Trade and other payables’ under UK GAAP .
2 Intangible assets at 31 December 2006 included a sum of £500,000 relating to the value of the TAM brands.
3 Amortisation of goodwill of £50,000 per annum is not required under IFRS as this asset is subject to an annual impairment
review.
4 Under IFRS the revaluation reserve is now transferred to retained earnings.
5 The Bedfordshire site which was leased to the owners of BK Engineering Limited is treated as an ‘asset held for sale’. This
was subsequently sold in April 2008.
6 The revaluation of property gives rise to a liability for deferred tax of £161,000 which is recognised under IFRS.
7 The expense relating to share based payments is not tax deductible at the time of grant and this gives rise to deferred tax
adjustments.
8 The long term element of the debt due in relation to the sale of certain business and assets now is  shown as ‘Other
receivables’ in ‘Non-current assets’ (see Deferred consideration Note 1).
9 Foreign exchange differences arising on translation of overseas subsidiaries are now shown separately.
77354 Accounts  19/5/08  20:05  Page 47 Parent Company Balance Sheet
Prepared in accordance with UK GAAP
at 31 December 2007
N OR M A N H AY P L C
48
2007 2006
Note £000 £000 £000 £000
Fixed Assets
Tangible Assets 6 2,844 2,837
Investments 7 13,165 13,165
16,009 16,002
Current Assets
Debtors 8 1,205 373
Cash at bank and in hand 1 787
1,206 1,160
Creditors due within one year 9 3,032 3,092
Net current liabilities (1,826) (1,932)
Total assets less current liabilities 14,183 14,070
Creditors due after one year 10 8,244 8,182
Provision for liabilities 11 50 125
(8,294) (8,307)
Net assets 5,889 5,763
Capital and Reserves
Equity share capital 12 1,481 1,452
Share premium account 13 1,253 1,170
Revaluation reserve 13 531 538
Capital redemption reserve 13 94 94
Share scheme reserve 13 26 9
Profit and loss account 13 2,504 2,500
Shareholders’ funds 5,889 5,763
The financial statements were approved and authorised by the Board on 20 May 2008.
Peter L Hay
Director
The notes shown on pages 49 to 56 form part of these financial statements.
77354 Accounts  20/5/08  17:41  Page 48 A NNUAL R EP ORT 20 07
Notes to the Financial Statements of
the Parent Company
49
1  Basis of presentation
The accounts are prepared under the historical cost convention, as modified to include the revaluation of certain assets, and 
in accordance with applicable UK GAAP and the Companies Act 1985.
2  Summary of significant accounting policies
Accounting convention
The financial statements have been prepared under the historical cost convention as modified by the revaluation of land 
and buildings and are in accordance with applicable accounting standards. The following principal accounting policies have 
been applied:
Land and buildings
The Company has continued to follow the transitional arrangements of FRS 15 ‘Tangible Fixed Assets’ to retain the carrying
value of freehold land and buildings as at 31 December 1999 as deemed cost. All additions since this date are stated at cost.
Where an asset that was previously revalued is disposed of, its book value is eliminated and an appropriate transfer made 
from the revaluation reserve to the profit and loss reserve.
Depreciation and amortisation
Depreciation and amortisation are provided at rates calculated to write-off the cost or valuation, less estimated residual value 
of each asset, except for freehold land, evenly over its expected useful life as follows:
Freehold buildings 45 years
Plant, vehicles and fixtures 3 to 10 years
Computer equipment 2 to 5 years
Impairment tests on the carrying value of goodwill are undertaken at the end of the first full year following acquisition and in
other years if events or changes in circumstances indicate that the carrying value may not be recoverable.
Investments
Investments held as fixed assets are stated at cost less any provision for impairment.
Foreign currency translation
Where transactions are entered into by an operation, in a currency other than the operation’s functional currency, the
transactions are translated at the rates ruling when they occurred. Foreign currency monetary assets and liabilities are
translated at the rates ruling at the Balance Sheet date. Any differences are taken to the profit and loss account for the year.
Deferred taxation
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by Balance Sheet
date except that;
● deferred tax is not recognised on timing differences arising on revalued properties unless the Group has entered into 
a binding sale agreement and is not proposing to take advantage of rollover relief; and
● the recognition of deferred tax assets is limited to the extent that the Group anticipates making sufficient taxable profits
in the future to absorb the reversal of the underlying timing differences.
Deferred tax balances, arising from underlying timing differences in respect of tax allowances on industrial buildings are
reversed if and when all conditions for retaining those allowances have been met. Deferred tax balances are not discounted.
77354 Accounts  19/5/08  20:05  Page 49 Notes to the Financial Statements of
the Parent Company continued
N OR M A N H AY P L C
50
2  Summary of significant accounting policies (continued)
Financial Instruments
Financial Instruments are measured initially and subsequently at cost.
The Company’s exposure to credit risk is primarily attributable to its trade debtors and this risk is managed by running credit
checks on new customers and by monitoring payments against contractual agreements.
Our treasury function is carried out on a day to day basis, depositing any surplus funds on the short term money market.
The Company has maintained a long term loan with the Bank of Scotland in order to provide readily accessible cash for future
investments and acquisitions.
The Board considers cash flow projections on a monthly basis.
Share-based payment
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the profit
and loss account over the vesting period. Non-market vesting conditions are taken into account by adjusting the number 
of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised 
over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored 
into the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made irrespective 
of whether the market vesting conditions are satisfied. The cumulative expense is not adjusted for failure to achieve a market
vesting condition.
3  Employees
2007 2006
Number Number
The average number of employees including Executive Directors, during the year comprised:
Office and management 6 6
£000 £000
Staff costs, including Executive Directors, during the year amounted to:
Wages and salaries 582 699
Social security costs 91 89
Other pension costs 115 116
788 904
Directors’ remuneration consists of:
Aggregate emoluments 473 609
Pension contributions 36 41
Compensation for loss of office – 47
Gain on exercise of share options 114 – 
Fees 51 – 
674 697
The highest paid Director had a salary of £251,000 (2006: £212,000), including performance related pay, benefits in kind and a
pension contribution of £25,000 (2006: £20,000).
The Company contributed £36,000 (2006: £41,000) towards the personal pension plans of two Directors (2006: three) including
the highest paid director.
77354 Accounts  19/5/08  20:05  Page 50 A NNUAL R EP ORT 20 07
51
4  Dividends
2007 2006
£000 £000
Final dividend paid of 2.0p (2006: 1.5p) per share 261 218
Interim dividend paid of 1.8p (2006: 1.3p) per share 293 189
554 407
Dividends declared after the balance sheet date but before approval of
financial statements of 2.6p (2006: 2.0p) per share 378 290
5  Company profit for the financial year
The Company has taken advantage of the exemption allowed under section 230 of the Companies Act 1985 and has not
presented its own profit and loss account in these financial statements. The Group profit for the year includes a profit after tax
and before dividends of £551,000 (2006: £1,576,000) which is dealt with in the financial statements of the parent Company.
6  Tangible assets
Freehold Plant, 
land and vehicles
buildings and fixtures Computers Total
£000 £000 £000 £000
Company
Cost or valuation
At 1 January 2007 3,293 43 35 3,371
Additions – 43 3 46
Disposals – – (9) (9)
At 31 December 2007 3,293 86 29 3,408
Depreciation
At 1 January 2007 478 31 25 534
Provided during the year 23 10 6 39
Disposals – – (9) (9)
At 31 December 2007 501 41 22 564
Net book value
At 31 December 2007 2,792 45 7 2,844
At 31 December 2006 2,815 12 10 2,837
2007 2006
Freehold land and buildings included at: £000 £000
Open market value on 16 November 1992 2,850 2,850
Cost 443 443
3,293 3,293
The historical balances of freehold land and buildings are:
Cost 2,698 2,698
Accumulated depreciation (463) (440)
2,235 2,258
77354 Accounts  19/5/08  20:05  Page 51 Notes to the Financial Statements of
the Parent Company continued
N OR M A N H AY P L C
52
7  Investments
£000
Other Investments
Cost 13,165
At 1 January 2007 and at 31 December 2007
Subsidiary undertakings
The principal undertakings in which the Company’s interest at the year end is 20% or more are as follows:
Country of Proportion of voting
incorporation rights and ordinary
Subsidiary undertaking or registration share capital held Nature of business
Surface Technology plc England 100% Surface engineering, impregnation and finishing
of metals. Supply of impregnation equipment
and chemicals and NDT equipment.
Ultraseal USA Inc USA 100% Distributors of impregnation equipment
and chemicals.
Lancy Technology Ltd England 67% Eff ent treatment systems. lu
Ultraseal Asia Ltd * BVI 75% Holding company for Ultraseal Shanghai Ltd.
Ultraseal Shanghai Ltd * China 75% Processing and distribution centre for 
impregnation chemicals and equipment.
Hi-Tech Coatings Pty Ltd * Australia 100% Surface engineering and finishing of metals.
MX Systems International Ltd England 100% Supply of impregnation equipment
and chemistry.
Applied Precision Coatings Ltd * England 100% Surface engineering and finishing of metals.
TAM International Group Holdings Ltd England 75% Holding company for the following TAM 
trading companies.
TAM International UK Ltd * England 75% Manufacture and supply of sealants for the
construction industry.
TAM International Hong Kong Ltd * China 75% Supply of sealants for the construction industry.
TAM International Singapore Pte Ltd* Singapore 75% Supply of sealants for the construction industry.
TAM International Australia Pty Ltd* Australia 75% Manufacture and supply of sealants for the
construction industry.
All the above subsidiaries are included in the consolidated financial statements.
For all undertakings listed above, the country of operation is the same as the country of incorporation or registration.
* These undertakings are indirectly held by Norman Hay plc.
77354 Accounts  19/5/08  20:05  Page 52 A NNUAL R EP ORT 20 07
53
8  Debtors
2007 2006
£000 £000
Trade debtors 57 17
Amount owed by subsidiaries 1,124 316
Other debtors 5 5
Prepayments and accrued income 19 15
Corporation tax – 20
1,205 373
All amounts included in debtors are receivable within one year.
9  Creditors due within one year
2007 2006
£000 £000
Bank overdraft and loans (secured) 2,557 1,763
Trade creditors 68 162
Amounts owed to subsidiaries 184 938
Taxation and social security costs 80 103
Other creditors 25 – 
Accruals and deferred income 54 126
Corporation tax 64 –
3,032 3,092
The bank overdrafts and loans are secured over certain of the Group’s assets and undertakings.
10  Creditors due after one year
2007 2006
£000 £000
Bank loans (secured) 750 950
Amounts owed to subsidiaries 7,494 7,232
8,244 8,182
Loans and overdrafts are repayable as follows:
In one year or less 2,557 1,763
In more than one year but not more than two years 750 950
3,307 2,713
77354 Accounts  19/5/08  20:05  Page 53 Notes to the Financial Statements of
the Parent Company continued
N OR M A N H AY P L C
54
11  Provision for liabilities
The amount of deferred taxation provided, which relates to accumulated depreciation being lower than accumulated
capital allowances, and other timing differences, is as follows:
2007
£000
At 1 January 2007 125
Credit to profit and loss account (5)
Other movement (70)
At 31 December 2007 50
12  Share capital At 31 December 2007 At 31 December 2006
Number Value Number Value
000 £000 000 £000
Authorised – ordinary shares of 10p each 18,000 1,800 18,000 1,800
Allotted and fully paid – ordinary shares of 10p each 14,812 1,481 14,524 1,452
Details of movement in share capital can be found in Note 26 to the Group Financial Statements.
13  Reserves Share Capital Share Profit Total
Share premium Revaluation redemption scheme and loss
capital account reserve reserve reserve account
Company £000 £000 £000 £000 £000 £000 £000
At 1 January 2007 1,452 1,170 538 94 9 2,500 5,763
Issue of new shares 29 83 – – – – 112
Share scheme charge – – – – 17 – 17
Movement in reserves – – (7) – – 7 – 
Retained profit for the year – – – – – 551 551
Dividends paid in year – – – – – (554) (554)
At 31 December 2007 1,481 1,253 531 94 26 2,504 5,889
14  Reconciliation of movements in shareholders’ funds
2007 2006
£000 £000
Profit for the financial year 551 1,576
Dividends paid (554) (407)
(3) 1,169
Issue of new shares 112 – 
Share scheme charge 17 9
Net additions to shareholders’ funds 126 1,178
Opening shareholders’ funds 5,763 4,585
Closing shareholders’ funds 5,889 5,763
77354 Accounts  19/5/08  20:05  Page 54 A NNUAL R EP ORT 20 07
55
15  Related party transactions
The Company is exempt under the terms of Financial Reporting Standard 8, ‘Related party disclosures,’ from disclosing related
party transactions with entities that are part of the Group or investees of the Group.
16  Contingent liabilities
The Company had outstanding guarantees in respect of subsidiary undertakings amounting to £84,000 at 31 December 2007 
(2006: £109,000).
17  Cash flow statement
The Company is exempt from the requirement to publish a cash flow statement because a cash flow statement for the Group
has been presented (see page 18).
18  Share-based payment
Norman Hay plc operates two equity-settled share based remuneration schemes for employees: a long term incentive scheme
and an unapproved scheme for Executive Directors and senior management. All UK employees are eligible to participate in 
the long term incentive scheme, the only vesting condition is that the employee remains an employee of the Group over the
savings period.
Under the unapproved scheme, the shares are only exercisable at a share price of 250p or a change in control.
2007 2007 2006 2006
Weighted Weighted
average average
exercise exercise
(pence) Number (pence) Number
Outstanding at the beginning of the year 63 1,617,750 39 287,750 
Granted during the year – – 69 1,330,000 
Exercised during the year 39 (287,750) – –
69 1,330,000 63 1,617,750
The exercise price of options outstanding at the end of the year was 69p (2006: 37.5p 69p). to 
There were no options exercisable at the year end.
77354 Accounts  19/5/08  20:05  Page 55 N OR M A N H AY P L C
56
18  Share-based payment (continued)
The following information is relevant in the determination of the fair values of options granted during 2006 under the share
based remuneration schemes operated by Norman Hay plc.
2007 2006
Equity-settled
Option pricing model used Black-Scholes Black-Scholes
Weighted average share price at grant date (pence) 68 68
Exercise price (pence) 69 69
Weighted average contractual life (days) 1,095 1,095
Expected volatility 20% 20%
Expected dividend growth rate 5% 5%
Risk-free interest rate 5% 5%
Equity-settled
Option pricing model used Monte Carlo Monte Carlo
Weighted average share price at grant date (pence) 68 68
Exercise price (pence) 69 69
Weighted average contractual life (days) 1,095 1,095
Expected volatility 20% 20%
Expected dividend growth rate 5% 5%
Risk-free interest rate 5% 5%
The share based remuneration expense comprises: 2007 2006
£000 £000
Equity-settled schemes 17 9
The volatility assumption, measured at the standard deviation of expected share price returns, is based on a statistical analysis
of daily prices over the last 2 years.
The Group did not enter into any share-based payment transactions with parties other than employees during the current or
previous period.
Notes to the Financial Statements of
the Parent Company continued
77354 Accounts  19/5/08  20:05  Page 56 A NNUAL R EP ORT 20 07
Notice of Meeting
57
Notice is hereby given that the sixty first Annual General Meeting of the Company will be held at Norman Hay plc, 
Godiva Place, Coventry on 18 June 2008 at 11 am for the following purposes:
1 To receive and adopt the Directors’ Report and audited financial statements for the year ended 31 December 2007.
2 To declare a final dividend for the year ended 31 December 2007.
3 To re-elect as a Director Mr Peter Hay who retires by rotation in accordance with Article 84 of the Articles of Association.
4 To reappoint the auditors. A resolution to reappoint BDO Stoy Hayward LLP as auditors will be proposed at the forthcoming
Annual General Meeting.
5 To authorise the Directors to fix the auditors’ remuneration.
6 To consider and, if thought fit, approve as an Ordinary Resolution:
6.1) That in accordance with Article 7A of the Company’s Articles of Association and Part V Chapter VII of the Companies Act
1985 (“the Act”) the Company be and it is hereby authorised generally and unconditionally (pursuant to Section 166 of
the Act) to make market purchases of any of its own shares on such terms and in such a manner as the Board of
Directors of the Company may from time to time determine.
6.2) The general authority conferred by this resolution shall:
i) expire on the date of the Annual General Meeting of the Company to be held in 2009;
ii) be limited to 750,000 shares of the Company;
iii) not permit the payment per share of less than 10p nor more than 5% above the average of the middle market
quotations (derived from The Stock Exchange Daily Official List) of the shares for the ten business days before 
any such purchase is made;
iv) before expiry entitle the Company to enter into any contract for the purchase of its own shares which will or might
be executed wholly or partly after its expiration.
6.3) This authority shall only be capable of variation, revocation or renewal by the Company in General Meeting.
7 To consider and, if thought fit, approve as a Special Resolution:
That the Directors be and are hereby empowered pursuant to Section 95 of the Act to allot equity securities (as defined 
in that Act) and pursuant to an authority dated 22 June 2007, given to the Directors to allot relevant securities (as defined in
that Act) as if the provisions of Section 89(1) of the Act did not apply to any such allotment until the conclusion of the
Annual General Meeting to be held in 2009 or 15 months whichever comes first in respect of:
i) allotments in connection with rights issues (subject only to such exclusions as the Directors may feel necessary or
expedient to deal with fractional entitlements or legal or practical requirements of an recognised regulatory body 
in any territory); and
ii) the allotment for cash (otherwise than pursuant to (i)) of equity securities up to an aggregate nominal amount
of £75,000.
77354 Accounts  19/5/08  20:05  Page 57 N OR M A N H AY P L C
58
8 Adoption of new Articles of Association
It is proposed in this resolution to adopt new Articles of Association (the “New Articles”) in order to update the Company’s
current Articles of Association (the “Current Articles”) primarily to take account of changes in English company law
brought about by the Companies Act 2006.
The principal changes introduced in the New Articles are summarised in part 1 of the appendix to this document. Other
changes, which are of a minor, technical or clarifying nature and also some more minor changes which merely reflect
changes made by the Companies Act 2006 have not been noted in the appendix to this document. The New Articles
showing all the changes to the Current Articles are available for inspection, as noted on page 13 of this document.
9 Amendment to Articles of Association on 1 October 2008
It is proposed in this resolution to amend the New Articles to take account of provisions of the Companies Act 2006 
which are expected to come into force on 1 October 2008 relating to Directors’ conflicts of interest. The change to the 
New Articles which is being proposed in resolution 9 is summarised in part 2 of the appendix to this document. 
The amendments which are being proposed to the New Articles are available for inspection, as noted on page 13 
of this document.
Registered office: By order of the Board
Godiva Place Brigid M Cattle
Coventry CV1 5PN 20 May 2008
Notes:
1 A member entitled to attend and vote at this meeting is entitled to appoint one or more proxies to attend and, on a poll, vote on 
his/her behalf. A proxy need not be a member of the Company. A form of proxy is attached for use at the meeting. Members should
complete, sign and return this so as to reach the office of the Company’s Registrars not less than 48 hours before the time appointed 
for the holding of the meeting. By so doing they will not be precluded from attending and voting at the meeting in person should they 
be able to do so.
2 A register of Directors’ interests and those of their families in the shares of the Company and copies of relevant Directors’ service contracts
will be available for inspection at Norman Hay plc, Godiva Place, Coventry from the date of this notice until the close of the meeting.
3. As permitted by Regulation 41 of the Uncertificated Securities Regulations 2001, shareholders who hold shares in uncertified form must
be enrolled on the Company’s register of members at 6.00 pm on 16 June 2008 or, in the event that the Meeting is adjourned, on the
register of members as at 6.00 pm two days prior to the time of any adjourned meeting (provided such time is not more than 48 hours
prior to the time of any adjourned meeting), in order to be entitled to attend and/or vote at the Meeting in respect of the number of
shares registered in their name at such time. Changes to entries on the register of members after that time will be disregarded in
determining the rights of any person to attend and/or vote at the Meeting.
Notice of Meeting continued
77354 Accounts  19/5/08  20:05  Page 58 A NNUAL R EP ORT 20 07
Form of Proxy
Form of Proxy for use at the Annual General Meeting to be held on 18 June 2008
59
I/We ......................................................................................................................................................................................................................................
(NAME IN FULL IN BLOCK CAPITALS PLEASE)
of ............................................................................................................................................................................................................................................
being a member/members of Norman Hay 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 at 11 am on
18 June 2008 and at any adjournment thereof.
Dated this ............................................................................................ day of ....................................................................................................... 2008
Signature ..............................................................................................................................................................................................................................
Please indicate, by inserting a cross in the appropriate space, how you wish your vote to be cast on all the resolutions
mentioned. If you sign this form and return it without specific directions, your proxy will vote or abstain at his discretion. 
This proxy will be used only in the event of a poll being directed or demanded.
Resolutions For Against
1 To receive and adopt the Directors’ Report and financial statements
2 To declare a final dividend
3 To re-elect Mr Peter Hay as a Director
4 To reappoint the auditors
5 To authorise the Directors to fix the auditors’ remuneration
6 To authorise the Company to buy its own shares
7 To disapply Section 89(1), Companies Act 1985 to share issues
8 To adopt the new Articles of Association
9 To amend the Articles of Association on 1 October 2008
Notes:
1 To be effective, this form must be lodged with the Registrars, Equiniti, Aspect House, Lancing, West Sussex BN99 6ZR, not later than 
forty-eight hours before the meeting.
2 Any alteration in this form should be initialled.
3 In the case of joint holders, the vote of the senior who tenders a vote, whether in person of by proxy, shall be accepted to the exclusion 
of the other joint holders and for this purpose seniority shall be determined by the order the names appear in the Register of Members.
4 In the case of a corporation, this form should be executed either under its common seal or under the hand of an officer or attorney 
duly authorised.
5 Completion and return of this form will not preclude shareholders from attending and voting at the meeting should they subsequently
decide to do so.
†) If it is desired to appoint any other person (who need not be a member of the Company) to act as proxy, insert the name in the space
provided above and strike out the reference to the Chairman.
✂
77354 Accounts  19/5/08  21:35  Page 59 BUSINESS REPLY SERVICE
Licence No. SEA 10850
1 1
SECOND FOLD
THIRD FOLD
FIRST FOLD
Equiniti
Aspect House
Lancing
West Sussex
BN99 6ZR
77354 Accounts  19/5/08  20:05  Page 60