Annual report and financial statements 2005 GUERNSEY
JERSEY
Annual report and financial statements 2005 Jessops plc
We ended the financial year with
a total of 278 stores located
across the UK. These stores fall
into four main formats: 254
High Street locations, 4 World
Camera Centres, 13 out of town
stores, and 7 stores in regional
shopping centres.
•
High Street
•
World Camera Centres
•
Out of Town
•
Regional Shopping Centres Stuart Robinson York
Phil Gould Norwich
Jessops has established a reputation for its
expert staff, who share the company’s passion
for photography. Indeed many are enthusiastic
amateur photographers in their own right,
boasting considerable talent.
To enable them to showcase their skills the
company staged a photographic competition
exclusively for members of staff. A host of
high-quality entries were received, the best
of which are reproduced here.
Adam Richardson Lichfield
Mark Grist Southampton
Arthur Dayne Leicester
Andy Barclay Sunderland
Barrie Thom
John Wa Michael Lee York Matthew Rock Beckton
Paul Cowlishaw Salisbury
Mark Grist Southampton
Karen Lamerick Head Office
mpson Sunderland
alls Leicester
Heidi Watson Reading Highlights of the Year
 turnover up 2.6% to £327m
 proposed final dividend of 1.4p making
a total for the year of 2.1p
 operating profit before exceptionals up
6.4% to £13.8m
 EBITA decreased by 8% to £18.0m
 gross margin improved by one
percentage point to 31.9%
 the store portfolio grew by 16 to a total
number of 278 stores 
 total like-for-like sales down 0.4%
 Jessops voted Photographic Retailer of
the Year for the 10th year running
Contents
Highlights of the year 1
Directors and Senior Managers 2
Chairman’s statement 3
Chief Executive’s review 4
Operating review 7
Financial review 18
Directors’ report 20
Statement of Directors’ responsibilities 23
Audit Committee report 23
Corporate governance 24
Remuneration report 26
Independent Auditors’ report to the 
members of Jessops plc 30
Consolidated profit and loss account 31
Consolidated statement of total 
recognised gains and losses 32
Consolidated balance sheet 33
Company balance sheet 34
Consolidated cash flow statement 35
Reconciliation of net cash flow to 
movements in net debt 35
Notes to the accounts 36
Store list 55
Notice of Annual General Meeting 58
Form of proxy 59
Advisers and registered office 61
2006 reporting calendar 61 
01
300
250
200
150
100
50
0
2005
2004
2003
2002
2001
2000
192
236
262
278
350
300
250
200
150
100
50
0
162
207
240
319
20
18
16
14
12
10
8
6
4
2
0
turnover
stores growth
EBITA
£m
£m
246
207
2005
2004
2003
2002
2001
2000
2005
2004
2003
2002
2001
2000
287
327
8.6
10.8
19.5
18.0
17.1
13.5 Jessops plc
02
Former Non-executive Chairman and Non-executive Directors.
The Non-executive Chairman and Non-executive Directors,Tim Brookes,
Dominic Collier and Simon Tuttle, each resigned on 28 October 2004
prior to flotation. Tim Brookes joined the Group in 1996 and became
Non-executive Chairman in October 2002, at which time he was joined
by Simon Tuttle and Dominic Collier as representatives of the investor
shareholders.
Jessops plc Board
The Board currently comprises three Executive Directors, two Non-executive Directors and a Non-executive Chairman, whose business address
is Jessop House, Scudamore Road, Leicester LE3 1TZ. During the year there were only two Executive Directors, there was only one Non-executive
Director and one Non-executive Chairman until 10 May 2005, when the second Non-executive Director was appointed.
Gavin Simonds Chairman, aged 50
Gavin joined the Group on 28 October 2004 and
is Chairman of The Club Company, The Peacock
Group and Red Funnel Group. Gavin is a former
Director of Kleinwort Benson and Joint Managing
Director of InterContinental Hotels. Gavin is
also Chairman of the Nomination Committee.
Derek Hine Chief Executive, aged 53
Derek joined the Group as Managing Director
in July 1998. Derek is a former Managing Director
of Birkby plc and Managing Director of In Shops
plc, a former Retail Director of RHM Retail and
a former Operations Director of Dixons Financial
Services Limited.
John Crabtree BA (Hons) ACMA,
Group Finance Director, aged 55
John joined the Group as Group Finance Director
in January 1997. John qualified as a Chartered
Accountant with Birmid Qualcast in 1977 and is
a former Finance Director of WH Smith Retail
Limited and an Executive with Do It All Limited
and Pentos Retailing Limited.
William Rollason MA (Hons) ACA,
Non-executive Director, aged 45
William joined the Group on 28 October 2004.A
qualified accountant, he is Chief Executive of European
Home Retail plc and is a former Group Finance Director
of National Express Group PLC and Associate
Director of Carlton Communications PLC. He is also
a former Non-executive Director of Fasttrack Group
plc. William is Chairman of the Audit Committee.
Robin Whitbread Non-executive Director, aged 54
Robin joined the Group on 10 May 2005. Robin is a
former Group Buying and Marketing Director for
Somerfield PLC and Managing Director of Kwik Save.
Previously he spent 11 years as a Board Director of
J Sainsbury plc across Buying, Marketing and
Operations. Robin is Chairman of the Remuneration
Committee and is the Senior Independent Director.
Chris Langley Chief Operating Officer, aged 42
Chris joined the Group on 9 February 2005. Chris 
is a former Managing Director of Dixons stores and
has spent most of his career in photographic and
electrical retailing, working for the Dixons Group and
Minolta. Chris holds responsibility for the day to day
operation of the business. Chris joined the Board 
on 30 November 2005
Nick Molyneux BEng (Hons) ACA,
Group Company Secretary, aged 41
Nick joined the Group in February 1999 and has held
a number of senior positions within the Group finance
team. Before joining Jessops, Nick has also had finance
roles within The National Grid and The Woodland Trust.
Prior to qualifying as a Chartered Accountant with
KPMG, Nick spent a number of years in manufacturing
with Land Rover Limited and Bridon plc.
Andrew Walker-Smith 
Operations Director,
aged 32
Andy joined the Group as a
part-time Sales Assistant in
1987, becoming full-time
in 1989. He moved to
head office in 1992 and
undertook a variety of
roles before becoming 
an Area Manager in 1998
and Regional Manager in
2000.Andy was promoted
to Operations Director in
March 2002.
Symon Powell 
Brand Development
Director, aged 36
Symon has worked in retail
management for 18 years
within a number of British
retailers. These include
Dixons, Marks & Spencer,
Woolworths, Big W , Ocado
and now Jessops. He has
worked in retail operations,
human resources and
training, project 
management, buying,
proposition development,
communications and
marketing.
Theresa Wilde 
Personnel and Customer
Service Director, aged 36
Theresa joined Jessops to
run the personnel function
in 1992, later taking on
responsibility for training.
She left in 1997 to join
the retail division of GEHE
UK plc. She rejoined
Jessops in 1999 as Head
of Personnel and became
Personnel Director in May
2001. Theresa assumed
responsibility for customer
service in 2004 and is also
a Non-executive Director
of the Market Harborough
Building Society.
Mike Giddings
MEng (Hons) ACA,
Corporate Finance
Director, aged 32
Mike qualified as a 
Chartered Accountant with
KPMG, where he worked
until joining Jessops on 
26 April 2005. During his
career with KPMG, he
specialised in retail and
consumer markets, initially
in audit and then for 
the last three years in
transaction services. He is
responsible for the day to
day management of the
finance function.
Andy Hannan 
Buying Director, aged 37 
Andy joined the Group
on 30 August 2005 and is
a former Trading Director
of Index, part of the
Littlewoods Group. Prior
to joining Index, Andy
spent time in senior buying
and merchandising roles
at Argos, including running
the consumer electronics
division.
Peter Riordan
Property Director
aged 48
Peter joined the Group 
on 4 July 2005 and is 
a former Group Store
Development Director for
the Dixons Group. Whilst
at Dixons he led the
development of various
retail propositions including
PC World, The Link and
Currys. Peter has also
developed retail brands
within Europe and highly
successful airport outlets.
Senior Managers
In addition to the Board, Jessops has the following Senior Managers, all of whom are members of The Jessop Group Limited Board and whose 
business address is Jessop House, Scudamore Road, Leicester, LE3 1TZ
Annual report and financial statements 2005 03
Annual report and financial statements 2005 Jessops plc
Chairman’s statement
It is pleasing for me and my fellow
Non-executives, to see how the
executive management team 
and indeed everyone within the
business have responded to 
these difficult trading conditions.
We have just completed our first year
as a listed company – and it has proved
to be a challenging one. Nevertheless,
in a turbulent period for both the
British High Street and our market
place, Jessops has produced a set of
results which in the circumstances are
creditable. The month of February saw
a sudden downturn in the market, with
the strong growth in digital camera
sales we had previously enjoyed
ceasing. As a result, we revised our
expectation of profits for the year. As
anticipated, we have seen a partial
recovery in the growth of digital
camera sales and today we are
reporting profits in line with our
revised expectation.
It is pleasing for me and my fellow Non-executives
to see how the executive management team,
and indeed everyone within the business, has
responded to these difficult trading conditions.
The team focussed on driving through margin
improvements in the second half, making the
most of Jessops’ unique market position, strong
supplier relationships and the better quality
operational information that resulted from
earlier investments in improved IT systems.
Sales in 2005 were 2.6% ahead of the previous
year at £327 million and although EBITA of £18.0
million was 8% below last year’s pre-exceptional
figure, 2005 was still the second most profitable
year in Jessops’ history . The Board is recommending
the payment of a final dividend of 1.4 pence per
share, representing a total of 2.1 pence for the
year. If approved, the dividend will be paid on
27 January 2006 to shareholders on the register
on 23 December 2005.
The year also saw the appointment of Robin
Whitbread to the Board as a Non-executive
Director and I am pleased to announce today
the further strengthening of the senior executive
team with the appointment of Chris Langley to
the Board with effect from 30 November 2005.
Chris joined Jessops in February 2005 as Chief
Operating Officer. He brings extensive and
relevant hands-on experience to Jessops, having
worked for 20 years at Dixons Stores Group,
including nearly 4 years as Managing Director
of the Dixons’ fascia stores.   
Jessops heads towards 2006 in good shape,
having responded decisively to the challenges
we have faced and used the experience to
tighten up aspects of our business. Household
penetration levels for digital cameras at around
50%* are still a long way below those achieved
by analogue cameras. Strong growth continues
to be a feature of the digital SLR market, where
we have an unrivalled competitive position. Digital
photo processing, where we have one of the
leading offers in the market, is also showing
rapid growth and is set to overtake analogue
processing in the market within the coming
year. Looking ahead, we are taking a cautious
view of trading conditions going into this
Christmas and believe that it will be the latter
part of next year before we see a return to
positive like for like sales growth. In summary,
despite the caution referred to above, we remain
positive about the fundamental strength of our
business.
Gavin Simonds
Chairman
*Source: GfK Marketing Services Ltd 04
Annual report and financial statements 2005 Jessops plc
Sales were up 2.6% and despite the
difficult retail environment, total like
for like sales were down just 0.4%.
Therefore in comparison to many other
retailers, Jessops performance in
2005 looks relatively solid. 
We started the financial year strongly, with double
digit total sales growth and a 6.4% increase in
like for like sales in the first quarter. This was in
stark contrast to the conditions that faced us in
our second quarter, when the growth in sales of
digital cameras dried up completely in February.
The speed with which the market turned left us
little room to respond in the short term. It also
led us to reconsider our expectations for the
year as a whole. 
Although we have seen some recovery in the
market during the second half, particularly during
the fourth quarter, like for like sales growth did
not return. It has therefore been down to the
actions taken within the business to drive margin
improvements in the second half that have enabled
us to meet our revised profit targets for the year.
Sales increases hard won
Reflecting the downturn in consumer spending,
overall like for like sales for Jessops were down
0.4% and total sales were up 2.6% for the year
ended 30 September 2005.
Year ended 30 Sept 05
% change
Total sales +2.6%
Store like for like sales (0.9)%
Direct like for like sales** +8.9%
Total like for like sales (0.4)%
** Internet, mail order and tele sales
Total camera sales were up 6.9% by value, with
digital cameras accounting for 88.7% of camera
sales by value. Within this we continue to see
strong growth in digital SLR cameras, where our
reputation for unbiased advice, high levels of
customer service and value for money are
particularly important to customers. SLR sales
were up 124% by value for the year, with
Jessops’ share of the SLR section of the digital
camera market remaining above 30%*. 
The market for digital compact cameras, as
predicted, became more competitive during 2005,
as they continued their move towards a mass
market consumer product. The average price of
a compact camera sold in the UK was £158* in
the year to September 2005, 12.2%* below last
year’ s level. Despite unit volume growth of 11.2%*
in the number of digital compact cameras sold 
by Jessops in the year, our value market share
declined slightly in the period to 15.8%* at
September 2005. In response to this, and as part
of our strategy to strengthen our competitive
position at the compact end of the market, we
significantly increased the number of exclusive
product deals we offered in the year. Further
exclusive deals are planned for the coming year
and we believe these will help to support both
our margin and our market share at the more
competitive end of the digital camera market.
Sales of accessories, camcorders and other
photographic hardware were broadly flat year
on year at £137 million, with a 6.5% increase in
camcorder sales offsetting declines in accessories
and other photographic hardware sales. These
declines reflected the generally tougher trading
conditions, but also the continuing shift from
traditional to digital related products, particularly
for accessories. Our increased focus on camcorders
in the period produced a welcome uplift in our
camcorder market share to 12.7%* in September
2005, although the market for camcorders overall
remained tough. 
Chief Executive’s review
I am confident that we enter 2006
well placed to make the best of a
difficult trading environment and
take advantage of any upturn.
*Source: GfK Marketing Services Ltd 05
Annual report and financial statements 2005 Jessops plc
Driving the business
In response to the lower levels of general sales
activity, during the second half we focussed on
driving the business hard, and a number of
initiatives were implemented to improve margins.
Gross margins for the full year improved by
approximately one percentage point compared
to 2004. These initiatives included working more
closely with our suppliers and an increased
focus on exclusive merchandise deals. 
A number of these initiatives were greatly assisted
by the improved management controls and
information flows that resulted from the
investments made in 2004 and 2005 to upgrade
the Group’s warehousing and distribution
arrangements and the continued rollout of 
our new computer system and EPOS software.
Real momentum in digital printing
As previously highlighted, the increased household
penetration of digital cameras is driving significant
change in the Developing & Printing (D&P) market,
as it too moves from film to digital printing. T otal
D&P sales were down 7.6% year on year, but
this masks the significant growth of digital, up
65% by value year on year. 
Jessops has been at the forefront of in-store digital
printing with 179 digital minilabs, capable of both
analogue and digital printing and 70 instant
digital kiosks installed in stores across the country.
Every Jessops store also has at least one digital
kiosk, which allows customers to download
and manipulate their digital images and send
them to the in-store minilabs or wholesale
developers for processing.
Our reputation as a photo specialist and our early
move into digital D&P has helped us secure 
a significant share of this growing market. We
reached a major milestone in D&P in August,
when first time digital print processing exceeded
traditional film processing. Our digital printing
service exceeded two million digital prints per
week by the end of the financial year and in 
the Autumn peak reached a weekly record of 
2.5 million prints in October.
Digital spacemix trial
In response to this growing digital D&P opportunity
and to maximise our own growth potential in this
area, we commenced a new digital spacemix trial
in six Jessops stores in August. Building on the
knowledge gained from our photoexpress stores,
these new trial stores are divided into four clear
zones comprising a digital photo centre, camera
hardware, an extended accessories range and
customer service point. These stores offer an
increased number of digital processing kiosks
(up from two to seven), which are all prominently
located at the front of the store. They also have
a clearly identified member of staff who is a digital
photo “expert” to assist customers in getting the
most out of the new technology. The initial
results were encouraging and the trial was
extended at the end of October to 16 stores.
The enlarged trial continues to be encouraging.
New store openings
Our store opening programme continued
throughout the year, although the pace of new
openings was moderated in the second half to
take account of the more difficult trading
conditions. We ended the financial year with
16 additional stores, bringing the total number
of stores at the end of September 2005 to 278. 
People
Many of our 3,000 colleagues have only known
the buoyant retail conditions that the UK has
enjoyed over the past decade and so the trading
conditions of 2005 were new territory. It is
therefore with some pride that I take this
opportunity to thank all our colleagues, on
behalf of our shareholders, for the way they
responded to these new challenges. Jessops’
reputation stands and falls on the performance
of our people in our stores and across the
company. In 2005 they have yet again been 
a credit to the business.  
As evidence of this, we were delighted once again
to receive Practical Photography Magazine’ s and
Digital Photo Magazine’ s award for “Best Photo
Retailer of the Year” for 2005 in November, the
10th year in succession that we have received
this award. Also in November their readers
voted us “Best Photo Processor of the Year”for
2005, the third year running we have received
this award. Both are recognition of the importance
we place on customer service.
Senior management changes
In addition to the appointment of Robin Whitbread
to the Board as a Non-executive Director in May,
we have also made a number of other
appointments at Board and senior management
level that further strengthen the executive
management team. 
Chris Langley joined Jessops in February 2005
as Chief Operating Officer. He has already made
a significant contribution to the business since
his arrival and I am delighted that he has agreed
to join the Board with effect from 30 November.
At the same time, we also welcome Nick Molyneux
to the Board in his capacity as the newly appointed
Group Company Secretary. 
We ended the financial year with 16 additional
stores, bringing the total number of stores at
the end of September 2005 to 278.
New digital store layout in the trial stores
offers an increased number of digital
processing kiosks, which are all prominently
located at the front of the store
Digital processing has now exceeded film 
for the first time Annual report and financial statements 2005 Jessops plc
Beyond the Board, three further appointments
have been made to the executive management
team. Mike Giddings joined Jessops in April as
Corporate Finance Director, responsible for the
day to day management of the finance function.
Mike is a Chartered Accountant and joined
from a career at KPMG, where he specialised in
retail and consumer markets, initially in audit
and for the past three years in transaction
services. In July, Peter Riordan joined the
company as Property Director from Dixons
Stores Group where he was Group Store
Development Director. Peter has worked in the
retail sector over the past 30 years gaining a vast
amount of experience in both operations and
store proposition development. Finally, Andy
Hannan joined Jessops in August 2005 as Buying
Director from Index, part of the Littlewoods
business, where he was Trading Director. Andy
brings over 15 years of buying and
merchandising experience and has held various
Senior Buying and Merchandising roles at
Argos, Great Universal Stores and Otto UK.
Market fundamentals remain positive
Away from the near term trading challenges 
facing UK retailers, we remain positive about 
the fundamental strength of our business.
In D&P , the switch from analogue to digital
continues apace and forecasters are predicting
that the overall photo printing market will return
to growth in 2006 as digital printing overtakes
traditional analogue film processing. Our early
move into digital D&P , offering the full range of
online, in-store and home printing solutions
has helped us secure a significant share of this
fast growing market. 
Whilst competitive pressure is increasing, 
our strong market position as the UK camera
specialist gives us good leverage with major
camera manufacturers and we are increasingly
able to work with them to offer exclusive
merchandise deals. We are also continuing 
to see strong growth in the digital SLR camera
segment, where the benefits of our specialist
knowledge and our reputation for impartial
advice gives Jessops a competitive advantage. 
Household penetration of digital cameras remains
relatively low, at around 50%*, compared with
83%* for analogue. Moreover , the continued pace
of technological innovation and ongoing price
deflation are driving the camera replacement
cycle, which is significantly more active than
that experienced for analogue cameras. 
06
Outlook and current trading
Trading in the first two months of the current
financial year is in line with expectations. T otal like
for like sales in the eight weeks to 27 November
2005 were down 1.2%, with store like for like
sales down 3.6%. 
We are not anticipating any like for like sales
growth during the first quarter, particularly given
that we are trading against last year’s strong
comparatives. Against this, we expect the first half
will benefit from the gross margin improvements
achieved during the last financial year. 
Although we retain a cautious view of near term
trading, Christmas is not historically as important
for Jessops as it is for some other retailers. We are
encouraged by the continued strong performance
of digital SLR camera sales, by the growth we
have achieved in the digital processing market
and by the performance of our new format stores
trial. Despite there being ten months of our year
ahead of us and greater uncertainties than ever
on the High Street, given the changes that we
have made and will continue to make within our
business, I am confident that we will enter 2006
well placed to make the best of a difficult trading
environment and take advantage of any upturn. 
Derek Hine
Chief Executive
*Source: GfK Marketing Services Ltd Annual report and financial statements 2005 Jessops plc
a store network that’s
grown four-fold in the
past decade
Operating review
70 years of photographic excellence
In 1935, Frank Jessop opened a
photographic store in Leicester and
created what would become one of
the most successful photographic
retailers in the UK.
2005 saw the 70th anniversary of Jessops.
Much has changed since 1935 but one thing
has remained the same: the knowledge and
enthusiasm of our staff. That’s what we have
built our success on and it remains our key
selling point.
Today, we’re working in an exciting, fluid market,
and we’re constantly improving the way we offer
our services to ensure that we deliver everything
that our customers expect. We now have 278
stores and we will continue to open stores in
selected locations when opportunities arise.
Getting the right mix
Growth in the demand for digital printing means
that the needs and the expectations of customers
are changing. Rapidly developing technology
has opened up the convenience and versatility
of digital imaging to a whole new audience
who, this time last year, were buying their new
digital cameras. 
In the past few months we have looked at 
the way we merchandise our stores. We’ve
looked carefully at the in-store environment and
devised a new system for laying out the floor
space to more effectively reflect changing
customer demand. We’ve called the system
Spacemix, it’ s currently being trialled in 16 of our
stores, and it divides the store into four key zones:
Camera hardware, which includes cameras,
camcorders and camera phones;
Accessories, where customers can find many
of the extras they might need for their equipment;
Digital photo centre, which gives every
customer a comprehensive range of digital
photo printing options, plus enough kiosks to
virtually eliminate waiting. It also includes printers
and scanners; 
Customer service, an area where the customer
can get any help they might need. Of course, help
is on hand throughout the store but this area is
dedicated solely to service.
By the end of September 2005 we had fully
converted six stores to the new Spacemix
proposition. The trial was extended at the end
of October to include a further ten stores. The
enlarged trial continues to be encouraging.
07 08
printing
printing
Digital printing is a growth sector.
Customers are demanding
choice, value and quality . Jessops
is supplying them, winning a
significant section of this new
market.
Jessops has sold
69 million digital
prints in one year
alone 09
operating review continued Annual report and financial statements 2005 Jessops plc
*Source: Fujifilm internal forecasts
A growing market
Just one look at the figures involved in digital
printing – we currently sell, on average, two
million digital prints every week – clearly illustrates
the surge in its popularity. We have a larger
share of the digital printing market than its film
equivalent, and our investment in digital kiosks,
should see us consolidate our position and
continue to attract more customers. The majority
of digital printing still takes place with a home
printer: 76% of all digital photographers
produce prints with a home printer. Currently
16% of digital photographers use a High Street
developer. However, the trend is moving towards
High Street printing.*
The past year has seen considerable growth in the
online version of our digital printing service,
jessopsphotoexpress.com. The site was completely
re-designed and re-launched during the year and
offers a unique range of services and products.
Navigation is simple and intuitive, customers can
choose to have their pictures delivered to their
home or their nearest Jessops store, and anyone
who registers can edit and even store their
photos online.
The site also has a variety of photogifts, which
have proved to be popular. Customers can
order gifts, from mugs to wrapping paper to
teddy bears, personalised with their own photos.
It’s convenient, it’s quick and it comes with the
same standard of service Jessops offers in store.
Digital SLRs
Going hand in hand with the digital printing
boom is the increased uptake of digital SLRs.
These models are engineered to take exceptionally
high quality pictures yet start at under £500. 
The range gives customers a wide choice and has
created a new market for us, of which we retain
in excess of a 30%** share.
Our range of digital SLRs is comprehensive. From
our entry level models – which themselves offer a
wide range of creative picture-taking possibilities
– right through to professional models costing
thousands of pounds, every echelon of demand
is provided for. We offer models from leading
manufacturers such as Canon, Nikon, Konica
Minolta and Pentax. Thanks to our strong brand
values, many customers think of Jessops when
they’re looking for a digital SLR.
**Source: GfK Marketing Services Ltd 10
Annual report and financial statements 2005 Jessops plc
Our people, our USP
Many of our staff are keen photographers
themselves, but our strong focus on staff
training ensures a high level of customer service
in all Jessops stores. In fact, recent research
through Customer Comment Cards found that
94% of our customers rated the service they
received as either excellent (67%) or good (27%),
and readers of Practical Photography and Digital
Photo magazines have voted us the Best Photo
Retailer for ten consecutive years – a real
testament to the strength of our people. We’ve
also received the award for Best Processor of
the Year for the past three years.
Staff training takes many forms. Whether it’s
manufacturer-led seminars on leading products,
Jessops’ exclusive bi-monthly DVD Xposure TV,
or discussion groups on customer service, we
cover everything to deliver an outstanding
customer experience:
Friendly, impartial service
Our staff receive no commission, so customers
are always guaranteed unbiased advice.
Widest range, latest products
We bring customers an unrivalled range of the
latest cameras, camcorders and accessories.
Award-winning processing
We promise perfect pictures, and thanks to
professional, award-winning processing, we
deliver them.
Low prices
We regularly check our competitors’ prices to
ensure our customers always get a great deal.
Retailer of the Year
We’re proud to have been named Photo Retailer
of the Year for ten years in a row and Best
Processor of the Year for the past three.
Jessops own brand
One of the factors that helps set us apart 
from the competition is our own brand range.
It emphasises the quality and credibility of our
name and offers customers exceptional value
on everything from binoculars to lens cleaning
cloths. And from the business point of view, it
provides a far more favourable margin than
externally-sourced branded products.
Over the past year own brand products accounted
for 11% of our turnover . When the Jessops Own
Brand Centon DC8s was unveiled it delivered eight
effective megapixels for under £200 and came
with exceptional optical quality and a sturdy 
all-metal body.
operating review continued 11
people
people
A business is only as good as 
its people, so Jessops’ growth
over the past decade is a real
testament to its staff: friendly
and knowledgeable, they provide
outstanding customer service. 
Own brand also covers a full range of state-of-
the-art memory cards, which gives us yet another
source of digital printing revenue. Memory cards
are already being used for a whole host of other
digital products, not just cameras, meaning
demand will continue to grow. Phones, printers,
MP3 players, even televisions are now using the
technology, creating extra demand across new
markets.
94% of customers
rated Jessops
service as
excellent or good 12
range
range
Choice has always been key to
Jessops, and that means offering
all customers a large range of
products. Thousands of lines
make up the Jessops range,
bringing benefits to customers
and the business alike.
over 16,000
photographic,
digital and
video products operating review continued Annual report and financial statements 2005
13
Committed to choice
At Jessops we aim to make customer choice key.
Our range demonstrates a clear commitment to 
a vast array of products, which means that over
16,000 products are available for customers.  
Our range goes beyond just a great choice 
in cameras. For any customer who has taken
pictures and wants to turn them into photos
we offer every conceivable option, each
promising the highest quality pictures.
Customers can choose from:
• One hour kiosks – perfect for ordering photos
during a shopping trip, or even in a lunch hour;
• Instant kiosks – 40 photos in under three
minutes;
• Home printers – a full range of printers
allowing customers to produce their own
photos at home; 
• Online – jessopsphotoexpress.com lets anyone
edit, print or share pictures and even order
personalised photogifts.
Moving images
A key section of the Jessops range is camcorders,
an area where, since the introduction of digital
technology, we’ve been able to offer the
customers the very latest technology including
DVD, Mini DV and now Hard Drive models, the
latter of which records movies onto internal
memory – the visual equivalent of the massively
successful MP3 player.
Thanks to our programme of staff training, 
our colleagues can give just as good advice
about camcorders as cameras, and Jessops
has become one of the country’s leading
camcorder specialists.
Camera and printer bundles
These give customers everything they need 
to go from taking pictures to enjoying new
photos. The convenience of the complete
camera and printer package has made the
option an extremely popular gift choice as well
as the perfect introduction to digital
photography.
Megapixel camera phones
Put these alongside one of the newest additions
to the Jessops range – megapixel camera phones,
some of which have comparable specifications to
digital compacts – and a picture of an exceptional
range starts to emerge.
Range is a key brand value to us and benefits
the customer as well as the business. These
advantages are fairly clear, but it also creates
some less obvious rewards: our staff become
highly knowledgeable about a vast number 
of features, benefits and technology and they
become better at selling higher specification
products. 
Jessops plc 14
future
future
new web-sites
planned for early
financial year
2006
Jessops is succeeding in a highly
competitive market. Past success
doesn’t guarantee a successful
future but careful planning mixed
with extensive retail expertise are
solid reasons for the fundamental
strength of our business. Annual report and financial statements 2005 Jessops plc operating review continued
Greater online presence
www.jessopsphotoexpress.com is only one of 
a portfolio of websites we currently run, each
offering its own selling channel to give customers
maximum choice. The main Jessops site –
www.jessops.com – continues to give the
customer unbeatable range and exceptional value
and is a natural extension of the store network,
marrying the trusted Jessops brand values with
the instant convenience of internet shopping.
The site is scheduled for further development
with a re-design and streamlined navigation 
to give a more effective customer experience.
Our other online retail outlets, all of which draw
on the range, expertise and value of Jessops,
allow us to create specialist sites, such as
jessopsmobiles.com, an online shop dedicated
to our growing range of camera phones. The
increasing popularity of online shopping has
bolstered their performances and such is their
success that more new sites are being planned
for early 2006.
Exclusives
Over the past financial year the strength of our
brand and our reputation within the market has
seen us benefit from a whole range of exclusive
products. This part of our offering is set to continue
to grow over the coming years, as the world’s
finest photographic manufacturers choose us to
market their leading technology. Last year our
range included an increasing number of products
that were only available at Jessops. Two of
which included:
The Canon EOS 350D Silver Digital SLR was
one of our best-selling exclusives, benefiting
from the popularity of digital SLRs at Jessops
and its unique silver casing.
Minolta’s Dimage X1 Digital Compact is a
stylish digital compact which comes with an
exclusive Hugo Boss case, and thanks to its
great pictures and ultra-slim design it’s proved
really desirable for all types of customers.
Our exclusives reflect the size of the company
and the position we hold in the market. To be
able to offer such unique benefits is a real boost
to us and to our customers, who have responded
enthusiastically. Our exclusives have sold well over
the past year, and as more opportunities arise
we plan to carry on delivering even greater
choice to our customers.
15 Annual report and financial statements 2005 Jessops plc
Corporate Social Responsibility
£120,000 raised
for CLIC Sargent 
by staff and
customers over
2 years
Stakeholders
The Group recognises the need to engage with
all key stakeholder groups, identified as:
• Customers
• Shareholders
• Colleagues
• Suppliers
• Communities
• Environmental affairs
The Group believes that this engagement with
stakeholders must align closely with business
objectives in order to promote efficiency and
quality, minimise cost and bureaucracy and
maximise shareholder value and service to
customers.
Measurement of performance and
objective setting
The Group recognises that indicators of
performance are useful for informing the
stakeholder as to performance on Corporate Social
Responsibility (CSR) issues. However, work on
identifying suitable indicators, developing reporting
systems and an understanding of the cost associated
with providing such information is still on-going. 
Customers
The Directors believe in offering the customer 
a retail experience which is “The No. 1 in
Photography”. One of the key differentiators 
of the Jessops business model is customer
service. The Directors are proud of the Group’s
knowledgeable staff, who provide reliable,
unbiased advice and technical support to
customers making a buying decision. To ensure
that this core value is not diluted, the Group places
a strong emphasis on continued training to
provide Jessops staff with the skills to understand
customer requirements across a range of products
and to allow a sales-orientated ethos, whilst
retaining a high level of customer service and
unbiased advice.
Product knowledge is an important feature 
of weekly training sessions which all stores
undertake. The Group further develops
professional customer-facing skills through 
the Certified Photographic Consultant (CPC)
and Society of Photo Finishing Engineers (SPFE)
qualifications. Currently the Group has 138
CPC qualified staff, with a further 215 studying
for the qualification and 7 SPFE qualified staff
with 221 currently studying.
The Group takes all reasonable care to ensure
the safety and quality of the goods it provides,
employs a dedicated full-time customer liaison
department and works closely with local Trading
Standards Officers to ensure that the Group’s
trading practices are honest and fair.
Shareholders
The Chairman seeks to ensure inter alia that 
there is effective communication with individual
and institutional shareholders through the
announcement of regular trading updates, as well
as general presentations after the announcement
of the interim and preliminary results and the
posting of results on the Company’s website.
The Board believes that the Annual General
Meeting is the main forum for communication with
shareholders, where the Chairmen of the Board
and its committees are available to answer any
issues raised and with any Non-executive Director
being available to meet shareholders. In addition,
the Company Secretary and the Company’ s Brokers
draw the attention of the Board to all relevant
shareholder communications. The Board also
reviews briefings and comments by analysts in
order to maintain an understanding of market
perceptions of the Company. 
above: The Great Jessops Revolt – Derek Hine and
Chris Langley join in the fun to raise £3600.
below: Austin Mitchell MP, Culture Secretary
Tessa Jowell MP and Jessops’ Chief Operating
Officer Chris Langley present CLIC with £600
raised at Jessops’ Parliamentary Photo Exhibition
16
left: Jessops
colleagues from
Midlands stores
raise £1,500
climbing Snowdon 17
Annual report and financial statements 2005 Jessops plc
The Senior Independent Director is available to
shareholders if they have concerns which cannot
be addressed through normal channels, such 
as  Chairman, Chief Executive or Group Finance
Director, or for which such contact is not
appropriate.
All substantial issues, including the receipt of the
annual report and accounts, are proposed at the
Annual General Meeting as separate resolutions.
Colleagues
The Directors recognise that their colleagues
within the business are vital to its ongoing success
and continue to try to make employment within
the Group a safe, rewarding, challenging and
developmental experience.
Training opportunities are provided to store staff
and other employees. The Training Department is
run by experienced training staff, with a substantial
training investment which is focused on both store
staff training and management development.
Training needs are assessed at least once per
year in all stores and in head office. Examples
of such development and training includes
programmes to develop customer service, store
managers, technical product knowledge and
product awareness. The Group also runs NVQ
programmes to further develop staff potential
and recognise achievement.
The Group recognises the need to provide career
development training to managers and potential
managers in order to develop their skills and
encourage promotion from within. An annual
management development programme is run to
develop store management potential, helping
to provide a steady flow of store managers for
the new stores opened each year.  
The Group has developed clear and fair
employment policies, details of which may be
found in the employee hand book which is issued
to all staff and is reviewed, revised and re-issued
from time to time. Details of employee participation
may be found in the Directors’ Report.
The Group seeks to comply with all relevant
employment and health and safety legislation.
During the financial year, the Group had 6
reportable accidents under the Health and
Saftey Executives’ Reporting of Injuries, Diseases
and Dangerous Occurences Regulations (RIDDOR).
This is for injuries or accidents occuring at work
resulting in more than 3 days absence from
work (2004: 5 RIDDOR reportable accidents). 
Suppliers
The Directors believe in developing strong and
successful trading relationships with suppliers
which benefit the customer by providing:
• an unparalleled range of products and services
• reasonable prices 
• consistent levels of quality
In doing so, the Directors recognise the Group’s
obligation to comply with competition law and
have developed procedures to ensure that these
relationships remain at arms length. The Group
continues to adopt a clearly stated policy concerning
the fair and timely payment of suppliers.
Own brand product undergoes a thorough Quality
Assurance testing programme to ensure that
suppliers are meeting their obligations to provide
goods of the required standard.   
The Group does not yet have an ethical sourcing
policy and will review the appropriateness of
introducing one in the forthcoming year.
Communities
The Group’s relationship with the community
remains important to the Directors and is
emphasised by the continued partnership with
the Charity CLIC Sargent, which raises money
for children whose lives have been affected by
cancer and leukaemia.
In 2004 staff and customers raised £50,000 for
the charity, and at the end of September the
Group was on course to hit the current target
of £70,000. The Directors are pleased to report
that the funds raised will go to running Sam’s
House, a large home from home equipped to
house children and families at a time when being
together is so precious. 
Environmental affairs
The Group treats its environmental obligations
with the utmost responsibility, is committed to the
prevention of pollution and works to minimise the
environmental impact of its operations wherever
and whenever practicable. The Directors also
recognise that the effective implementation of
its environmental policy represents an opportunity
to improve performance by increasing the
efficiency of the Group’s operation by reducing
environmental risks and securing business benefit
from environmental protection.  
The Group seeks to:
• Comply with all relevant existing
environmental legislation and other
requirements;
• Reduce harmful emissions wherever practical; 
• Reduce consumption of materials in our
operations and promote recycling and the use
of recycled materials; 
• Manage energy and water usage wisely in all
our operations; 
• Incorporate environmental considerations into
the procurement of goods and services.
The Board is aware of the recent general criticisms 
of Environmental Reporting raised by the
Environment Agency and during the course 
of the forthcoming year, the Board will review
the provision of indicators of environmental
performance where reasonably practicable 
and cost effective to do so. 
Minilab chemical disposal and recycling
The Group has registered all minilab stores 
and the head office site with the Department
of the Environment, Food and Rural Affairs for
the collection of hazardous waste, as required
from July 2005.
The chemical process for the development of
photographic prints in the in-store minilabs
produces a liquid effluent which, if discharged
into water courses, may be harmful to aquatic
life. The major contaminants in this waste are
heavy metals, predominantly silver. The Group
collects the effluent, which is treated by a licenced
environmental contractor to extract the silver
and reduce the liquid to water safe to
discharge into the normal sewerage.
The extracted silver is recycled.
Asbestos
The Group continues to fulfil its obligations
regarding asbestos found in buildings in the Group’ s
custody. A full survey for the presence of asbestos
on all sites was undertaken in 2004 and each of
the relevant sites has a statutory asbestos
management plan which is reviewed annually. 
Waste Electrical and Electronic Equipment
Directive (WEEE)
The WEEE implementation date for retailers in the
UK has been delayed until June 2006. Work is
currently on-going to ensure that the Group is fully
compliant and the Board is confident that the
company will meet its obligations by the due date.
Motor vehicles
The Group’ s fleet of vehicles is maintained and
serviced by authorised dealers and repair companies
with the appropriate facilities to safely dispose of
waste product, such as tyres and oil.
Waste paper and cardboard
The business recycles card and paper packaging
and waste products whenever practicable to do
so. During the year 135 tons of cardboard
packaging and 15.6 tons of waste paper was
recycled. The Group’ s store in Dublin provides
customers with bio-degradable paper bags in
order to comply with Irish environmental law. 18
Annual report and financial statements 2005 Jessops plc
Financial review
Turnover
Jessops’ turnover increased by 2.6% to £327.4 million in the year
ended 30 September 2005 (2004: £319.0 million). This increase was
principally the result of increased demand for digital photo imaging
products, and in particular digital SLR cameras, and additional sales
from new stores, which was partially offset by a small decline in like
for like sales.
Jessops’ store network generated approximately 91.2% of the Group’ s
turnover in 2005. The remainder was generated by direct sales
with the internet sites providing strong growth, and the business
to business and wholesaling activities.
Consumers’ growing awareness of digital imaging and lower prices of
cameras has attracted more purchasers of digital cameras and Jessops’
digital camera sales were up 13%. This in turn drives demand for
and consumption of digital-related accessories, hardware and printing
services. Against this, the inceased demand for digital photographic
products has principally been at the expense of analogue cameras,
accessories (particularly film) and film developing and processing.
The growth in digital cameras was particularly strong in the digital
SLR market where sales were up 124% by value. This growth was
driven by more manufacturers entering the digital SLR market, providing
the consumer with a wider range of products at competitive price
points. Strong growth was also evident in digital D&P , up 65% year
on year, as consumers are slowly becoming aware of the convenience,
quality and competitive pricing available in all Jessops’ stores.
Additionally, as a result of the pace of technological change in digital
imaging, replacement cycles of digital cameras are more frequent
than those experienced with analogue cameras. 
Price deflation has also been an enduring feature of the market,
with particular price points only being maintained by the addition
of new features to products. Lower prices for digital cameras have
drawn new retailers into the market, a development that has, and
may continue to, put pressure on product margins at the lower
end of the price spectrum.
Turnover
FY 2005 FY 2004
£million £million
Cameras 159.8 149.5
Photographic accessories 81.2 82.3
Developing and printing 30.1 32.6
Camcorders 31.2 29.3
Other photographic hardware 25.1 25.3
Total Turnover 327.4 319.0
On a store like for like basis, turnover decreased by 0.9% (like for
like sales information is a comparison of stores sales in consecutive
financial years, with new stores being included in the calculation
after a trading period of at least 12 months and excluding stores
closed in the relevant period).  
Turnover through the direct consumer channel, primarily the internet,
grew 8.9% on a like for like basis, resulting in an overall like for
like decrease of 0.4% for the Group.
Product mix and margins
Product margins vary widely within and across product categories.
As a general matter, however, accessories and D&P enjoy higher
margins than hardware (including cameras and camcorders).
Gross margin in 2005 at 31.9% was one percentage point higher
than 2004 levels reflecting a number of initiatives implemented in
the second half including the sourcing of higher quantities of
exclusive product and the operating efficiencies provided by the
completion of the rollout of the new store EPOS system.
Operating expenses pre-exceptionals and goodwill amortisation
increased by 9.5% to £86.5 million in 2005 from £79.0 million in
2004. This increase was principally the effect of new store openings
and increased minilab charges, as nearly all new stores are fitted
out with minilabs. Staff costs have risen in line with the increased
staffing requirements of the store expansion programme and have
increased as a percentage of sales from 11.7% to 12.1%. Occupancy
costs have increased from 6.3% of sales to 7.2% as rental increases
continued to rise above inflation levels and new stores were opened
in more prime locations. 
EBITA before exceptional items decreased by 8.0% to £18.0 million in
2005 from £19.5 million in 2004. This decrease was principally the
result of a decrease in like for like sales, partially offset by the one
percentage point improvement in the gross margin.
Reflecting the more difficult trading environment experienced in
2005, EBITA margins (before exceptional items) declined from 
6.1% to 5.5%.
Jessops’ turnover and operating profits demonstrate a semi-annual
peak in December as a result of the Christmas shopping season and
again in the summer period as customers purchase cameras, memory
cards and film for their summer holidays and subsequently have their
images developed. The different mix of products bought in each of
the peaks contributes to slightly higher margins in July and August as
compared to December and January. In 2005, however, the summer
margin peak was enhanced by the initiatives to improve margin,
which were introduced in the second half of the year.
Additionally, as a result of Jessops’ ongoing store expansion strategy,
turnover in the second half of any given year generally exceeds
turnover in the first half as a greater number of stores are trading
overall.
Exceptional items
Exceptional items in 2005 amounted to £3.9 million compared to
£2.4 million in 2004. The 2005 exceptional item relates solely to the
write off of the unamortised deferred finance costs which arose
following the repayment of the existing loan notes and bank loans
post flotation. The 2004 exceptional items included £1.8 million in
connection with relocating the warehouse facilities and costs associated
with outsourcing distribution operations, £0.2 million in expenses
relating to an aborted potential acquisition and £0.4 million of costs
relating to advertising that had to be cancelled due to the flotation.
Amortisation
Most of Jessops’ amortisation charge results from the purchased
goodwill arising from the Secondary Buy-out in October 2002.
Amortisation in 2005 was £4.2 million in line with the charge
reflected in the 2004 accounts. 19
Interest charges
Jessops’ interest payable was £3.6 million in 2005 compared to
£11.4 million in 2004. The reduction reflects the repayment of debt
following the Company’ s flotation in November 2004. 
Taxation
The tax charge for the year amounted to £3.6 million (2004: £2.4
million) on pre-amortisation profit before tax of £10.1 million
(2004:£5.5 million). The pre-exceptional effective rate of tax for
2005 is 33.8% (2004: 36.8%). 
Profit for the financial period
Jessops’ recorded a profit after interest, exceptionals, tax and
dividends in 2005 of £0.1 million. The increase of £1.2 million 
from 2004 was principally the result of the effects of a lower 
level of interest partially offset by a lower pre-exceptional EBITA.
Earnings per share
Basic earnings per share improved to 2.3p (2004: loss of 3.1p) and
adjusted basic earnings per share decreased to 9.5p (2004: 13.5p).
Adjusted earnings per share excludes goodwill amortisation and
exceptional items (net of tax). The changes reflect the increased profit
for the financial period described above (principally due to a lower
level of interest), offset by the increased number of shares in issue in
the year following flotation. 
Dividends
The first interim dividend equating to 0.7p per share was paid in July
2005 in respect of the 6 months ending March 2005. It is envisaged
that a final dividend equating to 1.4p per share, in respect of the
12 months ending September 2005 will be paid on 27 January 2006
to shareholders on the register on 23 December 2005.
Cash flows
Cash flows from operating activities amounted to £13.4 million in
2005 compared to £21.0 million in 2004. The decrease in 2005 was
principally a result of more difficult trading conditions, and an increase
in stock. The higher stock reflects the increased number of stores in
the period and also reflects higher levels of exclusive product deals
entered into towards the period end. The timing of these deals has
resulted in higher creditors in the period.
Capital expenditure
The principal use of cash during the period has been capital
expenditure incurred in relation to the new store openings, together
with the ongoing development and rollout of our new computer
system and EPOS software. In the coming year , plans are in place for the
continued rollout of the store expansion programme, refurbishment
of existing stores and the installation of additional D&P Kiosks.
Financial structure
At 30 September 2005, Jessops’ total net debt was £39.2 million
(2004: £122.3 million). 
The company has a £5 million overdraft facility in place and an
agreement with HSBC for a new amortising term loan facility and
revolving credit facility in an aggregate amount of £53 million. 
Of this, £33 million relates to the amortising loan facility and 
£20 million relates to the revolving credit facility. 
The company has hedged its exposure to interest rate fluctuations
by entering an agreement which covered in excess of 70% of the
senior facility. The instrument caps the floating rate (before margin)
at 5.00% and has a minimum floating rate of 4.02%.
Pensions
Jessops operates a defined benefit pension scheme (“The Jessop
Group Limited Pension and Life Assurance Scheme”), which was
closed to new members in January 1997. The lastest full actuarial
valuation was carried out on 1 June 2004 and was updated for
FRS17 purposes at 30 September 2005 by a qualified independent
actuary. The actuarial valuation as at 1 June 2004 recommended
that contributions continue at £90,000 per month.
Under the FRS17 valuation the pension deficit decreased from
£10.6 million in 2004 to £10.1 million at the end of September
2005. The Group has decided to increase the monthly contribution
from £90,000 a month to £130,000 a month. It is estimated that
this will result in the deficit being fully funded within 13 years.
Jessops also has a defined contribution scheme (“The Jessop Group
Limited Money Purchase Pension Scheme”) into which it contributes
between 1% and 6% of salary depending on the employee’s age
and length of service. This scheme is provided by Norwich Union
and is compliant with stakeholder requirements. Employees may
join after nine months with the Group provided they contribute at
least 1% of their salary (which is then matched by the Group). 
International Financial Reporting Standards
As required by European Union legislation, the Group will first publish
a report under IFRS for the 6 months ending 2 April 2006 and
financial statements for the 12 months ending 30 September 2006.
IFRS implementation will have an impact on the presentation of
the Group’s results although it should be noted that it will have no
impact upon the Company’s trading or its cash flow. The principal
differences are expected to arise in goodwill amortisation, share
based payments, property leases, and deferred taxation.
John Crabtree
Group Finance Director
Financial review continued
Annual report and financial statements 2005 Jessops plc 20
Annual report and financial statements 2005 Jessops plc
The Directors present their annual report and the audited
financial statements for the year ended 30 September 2005.
Trading results 
The profit on ordinary activities before taxation and exceptionals
was £9.8 million (2004: £3.7 million).
Dividends
The Directors recommend payment of a final dividend of 1.4 pence
per Ordinary Share (2004: nil), which together with the maiden
interim of 0.7 pence per Ordinary Share (2004: nil), will result in 
a total dividend of 2.1 pence per Ordinary Share for the full year
(2004: nil).
Principal activities
Jessops plc is the holding company of a group of companies whose
principal activity is the retail of photographic products and services.
The only trading subsidiary, whose results in the opinion of the
Directors materially affects the results of the Group, is The Jessop
Group Limited. A review of the development and activities of the
Group is contained within the Chairman’s Statement, the Chief
Executives Report, the Operating Review and the Financial Review.
Going concern
After making suitable enquiries, the Directors believe that the Group
has adequate resources to continue in operational existence for the
foreseeable future. For this reason, they continue to adopt the going
concern basis in preparing the accounts.
Company structure
On 22 October 2004, Camera Holdings Limited changed its name
to Jessops plc.
On 3 November 2004, Jessops plc listed on the London Stock Exchange. 
Employees
Ensuring that staff are of the right calibre and remain appropriately
motivated is key to ensuring that customer service levels remain at
a consistently high level. The Group employs a combination of full-time
and part-time staff that reflect both the daily peaks as well as the
seasonal peaks of Summer and Christmas. 
It is the policy of the Group to provide employment equality to all
employees irrespective of race, ethnic origin, nationality, gender,
age, maritial or family status, disability, religious belief, political
opinion or sexual orientation.
Where possible, full details of all available vacancies are posted
internally. Appointments are made on the basis of skills, experience
and aptitude required for the vacancy.
Employee participation
The Group places considerable value on the involvement of its
employees. As such it pays a significant amount of attention to
maintaining and improving communications, to ensure that all
colleagues are kept informed on matters affecting them as employees
and on the various factors affecting the performance of the Group.
This is achieved through formal and informal meetings, weekly
briefing documents, monthly team briefings and a bi-monthly DVD
to communicate visually with staff. Also on a bi-monthly basis, the
Group holds a Colleagues Forum Meeting for head office staff and
the Area Communicators Meetings for stores, which discuss current
issues, best practice ideas and allow the views of staff to be
communicated to the Group management team. Supervisors and
team leaders also attend quarterly briefings to keep them abreast
of business developments.
The Company has introduced a Save As Y ou Earn scheme post-flotation
to give colleagues the opportunity to participate in the future success
of the business.
Financial reporting
The statement by the Chairman on page 3 and the relevant
information included in this Directors’ Report and the Remuneration
Report, give a summary of the Group’s past performance, present
position and future prospects. A statement by the Directors on their
responsibility for preparing the financial statements is given on
page 23 and a statement by the auditors on their responsibilities 
is given on page 30.
Supplier payment policy
The Group’s policy is to pay amounts owed to creditors as they fall
due. The Group does not follow any code or standard on payment
practice. Trade creditor days of the Group as at 30 September 2005,
calculated in accordance with the requirements of the Companies
Act 1985, were 65 days (2004: 51 days). This represents the ratio,
expressed in days, between the amounts invoiced to the Group in
the year by its suppliers and the amounts due, at the year-end, to
trade creditors falling due for payment within one year.
Charitable donations
The Company donated £5,500 to charity during the year, of which
£5,000 was donated to the Mayor of London’s Appeal Fund for the
victims of the 7/7 bombings. Jessops’ customers and staff also
raised a further £70,000 for CLIC Sargent through a number of
fundraising activities and the Directors would like to thank all those
who contributed to this worthwhile cause.
Directors’ report 21
Annual report and financial statements 2005 Jessops plc
Directors and Directors’ interests
The Directors who held office during the period were as follows:
Mr. TAE Brookes resigned 28 October 2004
Mr. D E Collier resigned 28 October 2004
Mr. S A Tuttle resigned 28 October 2004
Mr. J N Crabtree
Mr. D L Hine
Mr. G Simonds appointed 28 October 2004
Mr. W Rollason appointed 28 October 2004
Mr. R Whitbread appointed 10 May 2005
Substantial shareholdings
The Directors are aware of the following holdings of 3% or more,
including non-beneficial holdings which do not require notification
under the Companies Act 1985, of the Company’s issued share
capital at 17 November 2005:
%
ABN AMRO Capital 17.01
Morley Fund Management 10.04
Scottish Widows Investment Partnership 8.30
Investec Asset Management 6.17
Goldman Sachs Asset Management 5.17
Threadneedle Asset Management 3.65
Barclays Golbal Investors 3.38
Legal & General Investment Management 3.20
Financing
The Group’s policy is to finance its operations through a mixture of
retained profits and bank borrowings. The Group does not trade in
financial instruments. The main risks to arise from the Group’s
borrowings are interest rate risk and currency risk.
(a) Interest rate risk
The Group borrows in sterling and has interest rate collars to reduce
the exposure of the Group to fluctuations in interest rates. The Group
has hedged its exposure to interest rate fluctuations by entering an
agreement which caps the floating rate (before margin) at 5.00%
and has a minimum floating rate of 4.02%.
(b) Foreign currency risk
Some purchases are denominated in US dollars, Euros and
Japanese yen, the total amount of which was just over 2% of cost
of sales for the year. The Directors do not consider it necessary to
hedge for foreign exchange exposure. 
Directors’ report continued
John Crabtree retires by rotation and, being eligible, is recommended
for re-election at the Annual General Meeting. Robin Whitbread is
recommended by the Board for re-election as a Non-executive Director
at the Annual General Meeting. Chris Langley is recommended by
the Board for re-election as an Executive Director at the Annual
General Meeting.
There have been no changes in directors’ shareholdings between
the end of the financial year and 30 November 2005. Chris Langley,
appointed Executive Director post year end, has a beneficial interest
in 29,371 ordinary shares of 2.5p each.
Share options granted to Directors are shown in the Directors’
Remuneration Report.
Details of the Directors’ beneficial interests in the ordinary share capital of the company at 30 September 2005 are set out below:
Ordinary Shares Ordinary Shares Ordinary Shares Ordinary Shares A Ordinary Shares A Ordinary Shares 
of 2.5 pence each of 2.5 pence each of £1 each of £1 each of £0.01 each of £0.01 each  
Interest at Interest at end Interest at Interest at end Interest at Interest at 
beginning of year beginning of year beginning end of year
of year of year of year
Mr J N Crabtree nil 1,575,350 46,700 nil 596 nil
Mr D L Hine nil 1,805,680 56,700 nil 2,656 nil
Mr G Simonds nil 16,000 nil nil nil nil
Mr W Rollason nil 16,000 nil nil nil nil
Mr R Whitbread nil 10,000 nil nil nil nil
The Directors hold no non-beneficial interests in the ordinary share capital of the Company 22
Annual report and financial statements 2005 Jessops plc
Directors’ report continued
Authority to make market purchases of shares (Resolution 10)
Further to the resolution passed at the previous Annual General
Meeting to give the Directors authority to make market purchases
of shares, such authority expires at the next Annual General
Meeting. The Directors are seeking to renew the authority as follows:
The Directors are seeking authority to make market purchases of
shares of up to an aggregate nominal value of £128,546, being
5% of the current issued share capital of the Company, on such
terms and in such manner as the Directors may determine, provided
that the amount paid for each share (exclusive of expenses) will not
be more than 5% above the average of the middle market quotation
for ordinary shares as derived from the Daily Official list of London
Stock Exchange plc for the 5 business days prior to the contract for
the purchase is made, and in any event not less than 2.5p per share.
The authority sought will expire at the conclusion of the next
Annual General Meeting.
The Directors have no present intention to make any such market
purchases but consider it is desirable for them to be given this
opportunity by shareholders. The authority will only be exercised if
to do so would result in an increase in earnings per share and is in
the best interests of shareholders generally.
The Company currently has 2,379,348 Ordinary Shares of 2.5 pence
each under option pursuant to the Approved and Unapproved Share
Option Schemes, representing 2.31% of the current issued share
capital. These options would represent 2.44% of the Company’s
issued share capital if the authority sought in Resolution 10 were
exercised in full. 
Auditors
In accordance with Section 385 of the Companies Act 1985, a
resolution for the re-appointment of KPMG Audit Plc as auditors 
of the Company and for the Directors to fix their remuneration 
is to be proposed at the forthcoming Annual General Meeting.
By order of the Board
Nick Molyneux
Secretary
Annual General Meeting
The Company’s Annual General Meeting will be held at 250
Bishopsgate, London EC2M 4AA on 27 January 2006 at 11.00am.
The following special business will be proposed:
Authority to allot shares (Resolution 8)
The Directors are seeking authority under Section 80 of the
Companies Act 1985 to allot shares up to an aggregate nominal
value of £856,979 being one-third of the current issued share in
the event that they consider it appropriate to do so. The authority
will be in substitution for all previous authorities, which
accordingly will be revoked. The authority sought will expire at the
conclusion of the next annual general meeting.
The Directors have no present intention to make any such issue of
shares, other than in respect of shares that may be issued pursuant
to the Company’s share option schemes, but consider it desirable
for them to be given this opportunity by shareholders.
The Company currently holds no treasury shares.
Disapplication of pre-emption rights (Resolution 9)
The Directors recommend that authority be obtained from shareholders
to allot ordinary shares for cash in limited circumstances in respect
of some of the shares which the Directors will be authorised to allot
pursuant to Resolution 8 described above or to sell shares held by
the Company as treasury shares otherwise than on a pre-emption
basis (as required by Section 89 of the Companies Act 1985). The
Directors recommend that Section 89 of the Companies Act 1985
should not apply to any allotment of shares or sale of treasury
shares in connection with a rights issue, open offer or any other
pre-emptive offer in favour of ordinary shareholders in accordance
with normal practice in the United Kingdom, nor to an issue for
cash of shares or sale of treasury shares of an aggregate nominal
value of up to £128,546 which is equivalent to 5% of the
Company’s current issued share capital. The authority sought will
expire at the conclusion of the next Annual General Meeting. 23
Annual report and financial statements 2005 Jessops plc
Statement of Director’s
responsibilities
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 Group as at the end of the
financial year, and of the profit or loss for that period. In preparing
those financial statements, the Directors are required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed,
subject to any material departures disclosed and explained in the
financial statements;
• prepare the financial statements on the going concern basis unless
it is inappropriate to presume that the Group will continue in
business.
The Directors are responsible for keeping proper accounting records
which disclose with reasonable accuracy at any time the financial
position of the Company and to enable them to ensure that the
financial statements comply with the accounting provisions of the
Companies Act 1985. They have general responsibility for taking
such steps as are reasonably open to them to safeguard the assets
of the Group and Company and to prevent and detect fraud and
other irregularities.
Audit Committee report
The principal function of the Audit Committee is to assist the Board
in fulfilling its responsibilities to shareholders by monitoring the
Group’s internal control regime, reviewing financial reporting matters
(including accounting policies, compliance and areas of management
judgement and estimates) and the results of internal and external audit.
The Audit Committee was formed in November 2004 and comprised
the Non-executive Director William Rollason and the Non-executive
Chairman, Gavin Simonds until 10 May 2005, when the newly
appointed Non-executive Director Robin Whitbread joined the
Committee. Mr Simonds, as Company Chairman, resigned from the
Audit Committee on 20th September 2005. The Audit Committee
Chairman is William Rollason and the committee meets not less
than three times annually. The Executive Directors also attend meetings
by invitation and the Committee provides a forum for reporting by
the Group’s external auditors.
The Audit Committee’s terms of reference, which are available on
the corporate website at www.jessops.com, include the approval
of interim and full year financial statements, reviewing accounting
policies and the monitoring of the Group’s internal controls. During
the year, the Audit Committee has established policies on Auditor
Independence and conducted a review of internal controls. 
Following policies introduced during the year the Audit Committee
has reviewed whether, and is satisfied that, the Company’s auditors,
KPMG Audit Plc, continue to be objective and independent of the
Company. KPMG Audit Plc does perform non-audit services for the
Group but the Audit Committee is satisfied that its objectivity is
not impaired by such work.
The Audit Committee has reviewed the requirement for an internal
audit function and has, so far, concluded that this is not necessary
in view of the size and structure of the Group.
The Audit Committee met four times during the year and William
Rollason attended each meeting, Gavin Simonds attended three
meetings as a member and one as an observer. Robin Whitbread
attended one meeting as an observer and one as a member.
The Audit committee also reviewed its own performance and
amended its terms of reference during the year.
William Rollason, as a former Finance Director of a listed company,
is considered to have recent and relevant experience as required
under the Combined Code.
William Rollason
Chairman of the Audit Committee 24
Annual report and financial statements 2005 Jessops plc
Corporate governance
Sound governance is central to achieving the Directors’
prime objective of maximising shareholder value. Principally,
it comprises the processes by which the Group is directed
and managed, risks are identified and controlled and
effective accountability is assured. 
Combined Code
The Board has made significant progress in implementing the recom-
mendations of the Combined Code on Corporate Governance and
believes that there are no significant provisions of the Combined Code
which remain unfulfilled or are currently being worked on. During the
course of the year, a considerable amount of work has been done to
further improve the compliance with individual provisions including:
• Appointment of a Senior Independent Director allowing the
Chairman to resign from the Remuneration and Audit Committees;
• Independent external review of the performance of the Board
and its sub-committees;
• Review and amendment of committee terms of reference and
matters reserved for the Board;
• Review of procedures and documentation against the requirements
of the Combined Code;
• Establishing a process to comply with new EU market abuse
regulations;
• Improving the investor relations web-site.
Compliance with the Code of Best Practice 
In the following respects the Company has not, during the financial
year ended 30 September 2005, complied with Section 1 of the
Combined Code on Corporate Governance:
• On the 10 May 2005 the Company appointed Robin Whitbread
as the Senior Independent Director. Prior to this date the Company
had a Non-executive Chairman and only one Non-executive
Director and was not compliant with this provision of the Code;
• Until 20 September 2005, the Audit and Remuneration committees
were not wholly comprised of independent Non-executive Directors.
During the year the Chairman, who is not considered to be
independent for the purposes of the Combined Code, was a
member of the Audit and Remuneration Committee. This was
because there was only one independent Non-executive Director
and on appointment of another Non-executive Director a handover
period was required.
During the year, the Group was only partially compliant with
Section C3.4 as the Company’s whistle blowing procedures covered
staff theft only. In 2005 a review was initiated to ensure that the
policy will be fully compliant. Once implemented the full policy 
will be assessed by the Audit Committee on an ongoing basis.
The following paragraphs give details of how the Group’s
corporate governance procedures have operated during the year. 
Board of Directors 
During the year the Board of Directors has consisted of the
following directors: 
Director Role Status Date
Gavin Simonds Company Non-executive Appointed 28
Chairman Chairman October 2004
Derek Hine Chief  Executive
Executive Director
Director Role Status Date
John Crabtree Group Finance Executive
Director Director
William Rollason Chairman of Non-executive Appointed 28
Audit Director October 2004
Committee
Robin WhitbreadSenior Non-executiveAppointed
Independent Director 10 May 2005
Director and
Chairman of 
Remuneration
Committee
Tim Brookes Company Non-executive Resigned 28
Chairman Chairman October 2004
Dominic Collier – Non-executive Resigned 28
Director October 2004
Simon Tuttle – Non-executive Resigned 28
Director October 2004
The Executive Directors will seek re-election on a regular basis, 
and in any case within the maximum three year term, by rotation.
Details of the Chairman’s other significant committments are
summarised on page two of this annual report and accounts.
Board meetings
The Board held thirteen meetings, one strategy day and the Annual
General Meeting during the year. Gavin Simonds, Derek Hine, John
Crabtree and William Rollason attended all meetings, strategy day and
the Annual General Meeting. Robin Whitbread attended all six board
meetings held following his appointment and attended the strategy day .
Matters Reserved for the Board 
These include:-
• approval of the Group’s strategy and annual budget;
• overseeing of the Group’s operations to ensure competent and
prudent management, sound planning, an adequate system of
internal control, appropriate accounting, keeping of records and
compliance with statutory and regulatory obligations;
• approval of acquisitions and divestments, major capital projects,
investments and material contracts;
• annual review and approval of the overall levels of insurance for
the Group including Directors’ and officers’ liability insurance
and indemnification of Directors;
• approval of resolutions and corresponding documents put to
shareholders, press releases and announcements concerning
matters decided by the board;
• Board membership and remuneration policy for Directors and
other senior executives.
The schedule of matters reserved for the Board may be viewed on
the corporate website at www.jessops.com.
Board evaluation
The independent evaluation of the Board and its sub-committees,
by Equity Culture Limited, took place during August 2005, assessing
Board procedures and effectiveness. A key finding was the potential
benefit of appointing a third executive Director to bring additional
operational experience to the Board and post year end the Board 
has accepted the recommendation of the Nomination Committee 
to appoint Chris Langley as the third Executive Director. 25
Annual report and financial statements 2005 Jessops plc
Internal Control
The Board is responsible for the Group’s system of internal control
and for reviewing its effectiveness. The internal control systems are
designed to meet the particular needs of the Group and to manage
rather than eliminate the risk of failure to achieve business objectives.
Such systems can only provide reasonable and not absolute assurance
against material misstatement or loss.
The Board delegates to executive management the day to day
responsibility for identifying, evaluating and managing the risks
facing the Group’s operations, and for implementing and maintaining
internal control systems that manage those risks in an efficient and
effective manner, appropriate to their nature and scale.
The key procedures in the Group’s current risk management
process for reviewing the effectiveness of internal controls are
summarised below:
• There is a clearly defined Group management responsibility and
reporting structure;
• The Group’s objectives are reviewed as part of the strategic
planning process and communicated throughout the Group.
Objectives are set for individual stores and operating
departments as part of the strategy review process;
• Risk assessment and evaluation take place as an integral part of
the Group’s annual strategic planning cycle;
• The Directors are required to approve yearly financial budgets,
including capital expenditure. Performance against these targets
is monitored monthly and reported on at the Board meetings.
Reasons for divergences are discussed at Board meetings;
• Senior managers are responsible for the identification and evaluation
of significant risks in their areas of business together with the
design and operation of suitable internal controls. These risks are
assessed on a continual basis and may be associated with a variety
of internal and external sources including control breakdowns,
competition, safeguarding property, products and customers,
health, safety and environment, legal and regulatory requirements,
employees and suppliers;
• Matters relating to internal control brought to the attention of the
management by the auditors are reviewed and any corrective actions
to the internal control procedures are made in a timely manner;
• Written monthly reports, management accounts and key
performance indicators are submitted for stores and operating
departments and reviewed every month by senior management.
Significant risks and internal control issues are considered and
actions agreed at Board meetings; 
• Progress against action plans arising from weaknesses in internal
controls is monitored throughout the year.
The Audit Committee, on behalf of the Board, has reviewed the
effectiveness of the Group’s system of internal control and this has
been measured against the Turnbull Guidance on Internal Control,
published by the Institute of Chartered Accountants in England &
Wales in September 1999.
Nomination Committee Report
Nomination Committee Membership
The members of the Nomination Committee are Gavin Simonds
and the independent Non-executive Directors Robin Whitbread
and William Rollason. Gavin Simonds is the Nomination
Committee Chairman.
The Nomination Committee is required to meet at least twice per
year and did meet twice during the year to 30 September 2005.
Gavin Simonds and William Rollanson both attended two meetings
and Robin Whitbread attended the one meeting held after his
appointment.
Role of the Nomination Committee
The principal roles and responsibilities of the Committee are to:
• Keep under review the structure, size and composition of the
Board and its principal committees and to recommend changes
deemed necessary;
• Identify and nominate to the Board candidates for appointment
to the Board;
• Be responsible for succession planning for Board members;
• Make recommendations to the Board for the continuation or
otherwise of a Director upon the expiry of any specified terms 
of office.
The Nomination Committee’s terms of reference may be found on
the Group website at www.jessops.com.
Activities of the Nomination Committee
The key activities of the Nomination Committee during the year
were the appointment of Robin Whitbread as Senior Independent
Director and Chris Langley as Chief Operating Officer. The Board
accepted the Nomination Committee’s proposal and Robin
Whitbread joined the Board on 10 May 2005.
The Nomination Committee Chairman, Gavin Simonds attended
the Company’s Annual General Meeting on 15 February 2005.
The Nomination Committee also made recommendations to the
Board concerning the appointment of some senior managers in
subsidiary companies and a new Company Secretary.
The Committee is satisfied that the Executive Director retiring by
rotation, John Crabtree, the Non-executive Director seeking re-
appointment, Robin Whitbread, and the Executive Director seeking
re-appointment, Chris Langley, at the forthcoming Annual General
Meeting are qualified for re-appointment by virtue of skills, experience
and contribution to the Board, following formal performance
evaluation.
Using the results from the independent evaluation of the Board and
its sub-committees, undertaken in August 2005, the Nomination
Committee confirmed that the appointment of a third Executive
Director with considerable operational experience would provide 
a Board whose size, composition and balance of skills would be
more appropriate to the business of the Group. The Nomination
Committee’s recommendation to appoint Chris Langley to the post
of third Executive Director was approved by the Board on 28 November
2005. Chris was appointed Executive Director on 30 November 2005.
The Nomination Committee also reviewed its own performance,
amended its terms of reference and made use of external advisors
in seeking candidates for senior posts during the year.
Corporate governance continued 26
Annual report and financial statements 2005 Jessops plc
Remuneration report
This report has been prepared in accordance with The Directors’
Remuneration Report Regulations 2002, (“the Regulations”).
The auditors are required to report on the “auditable” part of
this report and to state whether, in their opinion, that part of
the report has been properly prepared in accordance with the
Companies Act 1985 (as amended by the Regulations). This
report is therefore divided into separate sections for audited
and unaudited information. The Board has reviewed the
Group’s compliance with the Combined Code (the “Code”) on
remuneration related matters. It is the opinion of the Board
that the group complied with all remuneration aspects of the
Code during the year.
This remuneration report sets out the Group’s policy on the
remuneration of Executive and Non-executive Directors, together
with details of Directors’ remuneration packages and service
contracts for the financial year ended 30 September 2005.
Role of the Remuneration Committee
Responsibility for the establishment of an overall remuneration policy
for the Group lies with the Board of Directors. The Remuneration
Committee decides both the level and the structure of Executive
Director’ s pay and the remuneration of the Chairman. The remuneration
of Non-executive Directors is a matter reserved for the Chairman
and the Executive Directors and no Director is involved in setting
their own remuneration.
The terms of reference of the Committee are available on the Group’s
website (www.jessops.com) or on request from the Company Secretary .
The major duties of the Committee include:
• Making recommendations to the Board on the Group’s system of
executive remuneration and its cost, its aim being to demonstrate
that executive remuneration is set objectively and that Executive
Directors are fairly rewarded;
• Determining specific remuneration packages for each Executive
Director, together with conditions of employment, including
pension rights, contracts of employment and any compensation
package in the event of the early termination of the contract;
• Establishing incentive schemes for Executive Directors, setting
performance criteria and monitoring their performance.
During the year the Remuneration Committee reviewed its activities
and amended its terms of reference.
Remuneration Committee Members
The Remuneration Committee is a Board committee consisting
exclusively of Non-executive Directors. During the year, the
Remuneration Committee members included Robin Whitbread
(Committee Chairman), William Rollason and Gavin Simonds. The
Committee was chaired by Gavin Simonds from 28 October 2004
until the appointment of Robin Whitbread as Senior Independent
Director on 10 May 2005. Gavin Simonds resigned from the
Remuneration Committee on 20 September 2005.
The Remuneration Committee Terms of Reference require the
Committee to meet at least twice per year. The Committee held four
meetings during the year . Robin Whitbread attended three of these, the
first being as an observer prior to his appointment. William Rollason
attended four meetings and Gavin Simonds attended four meetings,
the first three as a member and the last as an invited observer.
Advisers
The Remuneration Committee takes advice from advisers when
considered appropriate. During the year, but prior to the flotation
in November 2004, an independent review of the Executive
Directors’ remuneration was undertaken by Eversheds LLP . It 
was agreed at that time to defer the full introduction of the then
recommended levels of compensation such that they would be
achieved over two years. The Board proposes to conduct another
independent review of compensation on or before the expiry of
this period. Eversheds LLP are also the Company’s legal advisers. 
Remuneration Policy
The Group’s remuneration policy aims to align the interests of
Executive Directors with those of its shareholders and motivate
management in such a way as to lead to the continued long-term
development of the business. 
Individual remuneration packages are determined by the
Remuneration Committee within the framework of this policy.
The objective is to set fixed remuneration at market median levels
and to offer variable rewards which are linked to the performance
of the Group.
The Executive Director’s remuneration policy is designed to attract,
motivate and retain Directors of high calibre to maintain the Group’s
competitive position in the market and to reward them for enhancing
value to shareholders. An independent benchmarking review
comparing Directors’ remuneration with similar sized organisations 
in the same and related business sectors was undertaken by
Eversheds LLP prior to flotation. Using this independent review, the
Board took the view that the achievement of a median position on
Directors’ remuneration when compared to peer group companies
should be deferred until November 2005. In this way, the full value
of the recommended increases in remuneration is achieved in two
steps over a two year period. 
Components of the Executive Director’s remuneration
The main components of the Executive Directors’ remuneration are:
Salary – the basic salary for each Executive Director is determined
by the Remuneration Committee, taking into account each Executive
Director’ s responsibilities, experience and performance. The Committee
also has regard to the salaries paid in the market place and pay and
conditions throughout the group. Arrangements in respect of the
Executive Directors’ salaries have just entered their second year of a
two year period and will be reviewed in the financial year beginning
01 October 2006.
Benefits in kind – the benefits in kind include provision of a car
allowance, pension, medical and life assurance, permanent health
insurance and staff discount.
Annual bonus – the annual bonus awarded to each Executive
Director is at the discretion of the Remuneration Committee and is
linked to business performance.
Share options – the share options awarded to each Executive
Director are linked to the business performance over a three-year
period before being exercisable.
Only basic salary is pensionable. 27
Annual report and financial statements 2005 Jessops plc
Service contracts in year to 30 September 2005
The Group has service contracts with its Executive Directors. It is Group policy that such contracts should contain notice periods of not more than
12 months. Provision for compensation for loss of office is included in the contracts, the Group’s policy for which is that Executive Directors will
receive basic salary only during the notice period, and will be expected to mitigate their loss. There are no special provisions on a change of control.
Details of the contracts currently in place for Executive Directors who have served during the year are as follows:
Director Date of contract Unexpired term Notice period Provision for compensation
D L Hine 28 October 2004 Until retirement age 12 months Basic salary only 
during notice period
J N Crabtree 28 October 2004 Until retirement age 12 months Basic salary only 
during notice period
Chairman and Non-executive Directors
The Chairman and the Executive Directors determine the remuneration of the Non-executive Directors for their services as members of
the Board and its Committees. 
Details of the contracts currently in place for the Chairman and Non-executive Directors are as follows:
Director Date of contract Unexpired term Notice period
G Simonds 28 October 2004 2 years 1 month 1 month’s notice  
W Rollason 28 October 2004 2 years 1 month 1 month’s notice 
R Whitbread 10 May 2005 2 years 7 months 12 months notice in first year, 
1 month thereafter
Copies of the Non-executive Directors’ letters of appointment may be viewed on the Group’s website, www.jessops.com. 
The Chairman and Non-executive Directors do not receive share options or bonuses and do not participate in the Company’s pension scheme.
Share performance graph
(i) Jessops v FTSE General Retailers
The graph show the Group’s TSR performance since its IPO to the period ended 30 September 2005 in comparison to the FTSE General
Retailers sector index. This index has been chosen as the most appropriate against which to compare the Group’s TSR performance
because it represents a measure of those operating in the same sector as Jessops. As at the end of 30 September 2005, the share price
was 85.75 pence each.
Remuneration report continued
Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05
0.00
20.00
40.00
60.00
80.00
100.00
120.00
Jessops FTSE General Retailers 28
Annual report and financial statements 2005 Jessops plc
The following section of the Remuneration Report has been audited:
The emoluments in respect of qualifying services and compensation of each person who served as a Director during the year were as follows:
Salary Pre IPO 2005 2004
Director and fees Bonus Bonus Benefits Total Total
DL Hine 232,278 – 55,000 27,313 314,591 190,000
JN Crabtree 186,945 – 45,000 21,664 253,609 153,000
TAE Brookes 9,113 – – – 9,113 54,000
D Collier – – – – – 20,750
S Tuttle – – – – – 20,750
G Simonds 96,250 – – – 96,250 –
W Rollason 40,000 – – – 40,000 –
R Whitbread 15,757 – – – 15,757 –
580,343 – 100,000 48,977 729,320 438,500
As disclosed in the flotation prospectus, a bonus was recommended by the out-going Non-executive Directors and approved by the then
owners ABN AMRO prior to listing on the London Stock Exchange. This was paid in November 2004. 
Dominic Collier and Simon Tuttle, Non-executive Directors who retired on 28 October 2004, were made available by the Company’s then
owner ABN AMRO. The fees shown for these Non-executive Directors were paid to ABN AMRO.
Pensions in the year to 30 September 2005
The company provides pension entitlements to Directors that are defined benefit in nature. Details of the entitlements of those who
served as Directors during the year are as follows:
Accrued Increase in Increase in Transfer value of Transfer value of Increase in 
benefit at accrued benefits accrued benefits accrued benefits accrued benefits transfer value
30 September excluding including at 1 October at 30 September less directors’
Director 2005 inflation inflation 2004 2005 contributions
JN Crabtree 30,507 3,736 4,440 349,532 468,114 113,912
TAE Brookes 22,050 – 668 301,202 352,860 51,658
Details of the pension policy are provided in note 27. Derek Hine is a member of a money purchase scheme. During the year contributions
were £33,776 (2004: £22,000). The value of pension contributions unpaid as at 30th September 2005, all of which relate to Derek Hine,
was £ 7,376.
The Group’s policy is that a significant proportion of the remuneration of the Executive Directors should be performance related. The
policy in respect of Director’s remuneration for the forthcoming year is based on two key components, basic salaries and performance
related remuneration. 
Performance related remuneration
(a) Bonus
The Group may, at its discretion, pay the Executive Directors a bonus in respect of each financial year of the Group during which the
employment subsists.
Bonus for the year to 30 September  2005
For the year to 30 September 2005, the Board had approved an Executive Directors’ bonus scheme contingent on the business achieving
specific performance criteria based on budgeted Net Profit Before Tax. As the budgeted Net Profit Before Tax was not achieved, the
Executive Directors are not eligible for a performance bonus for the financial year to 30 September 2005. The maximum potential bonus
was 60% of salary. 
Bonus for the year to 30 September 2006
The bonus in place for Executive Directors in 2006 has a maximum potential bonus of 75% of salary which is achievable in full only
upon results in excess of budget. The increased bonus potential from the previous year is a reflection of the more challenging targets
to be achieved in 2006.
Bonuses do not form part of pensionable pay.
Remuneration report continued 29
Annual report and financial statements 2005 Jessops plc
(b) Share options and long term incentives in the year to 30 September 2005
In respect of share options and long-term incentive plans, the policy is to seek to encourage the Executive Directors to develop the commercial
success of the business. Entitlements under such plans are subject to the achievement of demanding performance conditions:
The performance conditions are that an option will not be exercisable unless the growth in Earnings Per Share (EPS) of the company over
the period of three financial years ending 30 September 2005, 30 September 2006 and 30 September 2007 exceeds the growth in the
Retail Prices Index (RPI) over the same period by at least 5% per annum. For growth in EPS equalling or exceeding 10% per annum above
the growth in the RPI , the option will be exercisable in respect of 100% of the shares comprised in it. For growth in EPS between 5%
and 10% per annum above the RPI, the percentage of the shares comprised in the option in respect of which it is capable of exercise will
be determined on a proportionate straight-line basis. There is no re-testing of performance conditions.
These performance conditions were considered appropriate because the ability to exercise the options is directly linked to the growth in
shareholder earnings. In assessing whether the performance conditions have been met, the Remuneration Committee will compare the
movement in RPI with the movement in EPS and seek independent advice on adjustment if required. This is a common method of
assessment of company performance. 
The performance conditions described in this report were introduced prior to the flotation and no amendments are proposed. All share
options are subject to performance conditions.
Details of Ordinary Share options of those Executive Directors who served during the year but were granted on 2 November 2004 are as follows:
Exercise Earliest date
Director Awarded Date of Grant Price of Exercise Expiry date
D L Hine 307,957 2 November 2004 155p 2 November 2007 2 November 2014
J Crabtree 247,312 2 November 2004 155p 2 November 2007 2 November 2014
The market price at the end of the year was 85.75 pence. The highest price during the year was 170.00 pence and the lowest price was
72.25 pence.
Share options at time of flotation
At the time of flotation, the Executive Directors, along with a number of other senior members of management, were awarded a one-off
grant of share options. The maximum participation limit was 200% of salary at the time of flotation.
Share options post flotation
The Group operates Approved and Unapproved Share Option Schemes for Executive Directors and other members of the management
team, the maximum annual grant being 100% of salary. The Executive Directors have not received any share options under this scheme
during the year. 
All Employee Share Schemes – SAYE Scheme
The Company operates an Inland Revenue approved savings related share option scheme for the benefit of Group employees. Eligible
employees, including Executive Directors, may be granted options over the Company’s shares at a discount of up to 20% to the prevailing
market price at the time of grant of option, which (subject to certain conditions) can be exercised after either three or five years.
Currently, John Crabtree contributes the statutory maximum to the SAYE Scheme of £ 250.  
The Group has not operated any other form of long term incentive scheme during the year to 30 September 2005 and none has been
implemented since the year end. 
Robin Whitbread
Chairman of the Remuneration Committee
30 November 2005
Remuneration report continued Annual report and financial statements 2005 Jessops plc
30
We have audited the financial statements on pages 31 to 54.
We have also audited the information in the Directors’
remuneration report that is described as having been audited.
This report is made solely to the Company’s members, as a body, in
accordance with section 235 of the Companies Act 1985. Our audit
work has been undertaken so that we might state to the Company’s
members those matters we are required to state to them in an
auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s members as a body, for
our audit work, for this report, or for the opinions we have formed. 
Respective responsibilities of directors and auditors
The Directors are responsible for preparing the Annual report and
the Directors’ remuneration report. As described on page 23, this
includes responsibility for preparing the financial statements in
accordance with applicable United Kingdom law and accounting
standards. Our responsibilities, as independent auditors, are
established in the United Kingdom by statute, the Auditing Practices
Board, the Listing Rules of the Financial Services Authority and by
our profession’s ethical guidance.
We report to you our opinion as to whether the financial statements
give a true and fair view and whether the financial statements and
the part of the Directors’ remuneration report to be audited have
been properly prepared in accordance with the Companies Act 1985.
We also report to you if, in our opinion, the Directors’ report is not
consistent with the financial statements, if 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 transactions
with the Group is not disclosed. 
We review whether the statement on pages 24 to 25 reflects the
Company’s compliance with the nine provisions of the FRC Code
specified for our review by the Listing Rules, and we report if it
does not. We are not required to consider whether the Board’s
statements on internal control cover all risks and controls, or form
an opinion on the effectiveness of the Group’s corporate
governance procedures or its risk and control procedures.
We read the other information contained in the Annual Report,
including the corporate governance statement and the unaudited
part of the Directors’ remuneration report, and consider whether it
is consistent with the audited financial statements. We consider
the implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the financial statements.
Independent Auditors’ report 
to the members of Jessops plc
Basis of audit opinion
We conducted our audit in accordance with Auditing Standards
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 and the part of the Directors’ remuneration
report to be audited. It also includes an assessment of the significant
estimates and judgements made by the Directors in the preparation
of the financial statements, and of whether the accounting policies
are appropriate to the Group’s 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 and the part of the Directors’ remuneration
report to be audited 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 and the part of the Directors’
remuneration report to be audited.
Opinion
In our opinion:
• the financial statements give a true and fair view of the state of
the affairs of the Company and the Group as at 30 September
2005 and of the profit of the Group for the year then ended; and
• the financial statements and the part of the Directors’
remuneration report to be audited have been properly prepared
in accordance with the Companies Act 1985.
KPMG Audit Plc
Chartered Accountants
Registered Auditor
1 Waterloo Way
Leicester LE1 6LP
30 November 2005 31
Annual report and financial statements 2005 Jessops plc
Consolidated profit 
and loss account
For the year to 30 September 2005
2005
Profit 2004
before 2005 Profit before 2004
exceptional Exceptional 2005 exceptional Exceptional 2004
items items Total items Items Total
Note £’000 £’000 £’000 £’000 £’000 £’000
Turnover 2 327,381 – 327,381 319,011 – 319,011
Cost of sales (222,884) – (222,884) (220,490) – (220,490)
Gross profit 104,497 – 104,497 98,521 – 98,521
Operating expenses 3,4 (90,738) – (90,738) (83,195) (2,400) (85,595)
EBITDA 33 23,590 – 23,590 23,807 (2,400) 21,407
Depreciation 3, 4 (5,616) – (5,616) (4,268) – (4,268)
EBITA 33 17,974 – 17,974 19,539 (2,400) 17,139
Amortisation 3, 4 (4,215) – (4,215) (4,213) – (4,213)
Operating profit 13,759 – 13,759 15,326 (2,400) 12,926
Interest payable and similar charges 6 (3,573) (3,920) (7,493) (11,384) – (11,384)
Other finance costs 7 (414) – (414) (266) – (266)
Profit/(loss) on ordinary
activities before taxation 9,772 (3,920) 5,852 3,676 (2,400) 1,276
Taxation on profit/(loss) on
ordinary activities 8 (4,722) 1,080 (3,642) (2,903) 505 (2,398)
Profit/(loss) on ordinary
activities after taxation 5,050 (2,840) 2,210 773 (1,895) (1,122)
Dividends 10 (2,160) – (2,160) –– –
Retained profit / (loss) 
for the financial period 2,890 (2,840) 50 773 (1,895) (1,122)
Basic earnings / (loss) per ordinary share 11 2.3p (3.1) p
Diluted earnings / (loss) per ordinary share 11 2.3p (3.0) p
Adjusted basic earnings 
per ordinary share 11 9.5p 13.5p
Adjusted diluted earnings 
per ordinary share 11 9.5p 13.3p
All activities relate to continuing operations. 32
Annual report and financial statements 2005 Jessops plc
Consolidated statement 
of total recognised gains 
and losses
For the period ended 30 September 2005
2005 2004
£’000 £’000
Profit/(loss) for the financial year 2,210 (1,122)
Actuarial gain/(loss) recognised in the pension scheme 516 (3,200)
Deferred tax on actuarial (gain)/loss (155) 960
Deferred tax on current year pension charge 2 (50)
Total recognised gain/(loss) for the period 2,573 (3,412) 33
Annual report and financial statements 2005 Jessops plc
Consolidated balance sheet
As at 30 September 2005
2005 2004
Note £’000 £’000
Fixed assets
Intangible assets 12 73,043 77,241
Tangible assets 13 40,973 36,277
114,016 113,518
Current assets
Stocks 15 56,429 42,428
Debtors 16 11,450 10,540
Cash at bank and in hand 4,809 10,730
72,688 63,698
Creditors: amounts falling due within one year 17 (65,813) (56,524)
Net current assets 6,875 7,174
Total assets less current liabilities 120,891 120,692
Creditors: amounts falling due after more than one year 18 (28,537) (119,722)
Provisions for liabilities and charges 21 (1,979) (1,394)
Net assets excluding pension liabilities 90,375 (424)
Pension Liabilities 27 (7,087) (7,444)
Net liabilities including pension liabilities 83,288 (7,868)
Capital and reserves
Called up share capital 22 2,571 197
Share premium account 23 89,161 792
Profit and loss account 23 (8,444) (8,857)
Equity shareholders’ funds 26 83,288 (7,868)
The attached notes form part of these financial statements. These financial statements were approved by the Board of Directors on 30
November 2005 and were signed on its behalf by:
D L Hine J N Crabtree
Director Director 34
Jessops plc Annual report and financial statements 2005 Jessops plc
Company balance sheet
As at 30 September 2005
2005 2004
Note £’000 £’000
Fixed assets
Investments 14 70 70
Current assets
Debtors 16 134,789 919
Cash at bank and in hand – –
134,789 919
Creditors: amounts falling due within one year 17 (14,445) –
Net current assets 120,344 919
Total assets less current liabilities 120,414 989
Creditors: amounts falling due after more than one year 18 (27,125) –
Net assets 93,289 989
Capital and reserves
Called up share capital 22 2,571 197
Share premium account 23 89,161 792
Profit and loss account 23 1,557 –
Equity shareholders’ funds 26 93,289 989
The attached notes form part of these financial statements. These financial statements were approved by the Board of directors on
30 November 2005 and were signed on its behalf by:
D L Hine J N Crabtree
Director Director 35
Jessops plc Annual report and financial statements 2005 Jessops plc
Consolidated cash flow 
statement
For the year ended 30 September 2005
Reconciliation of net cash flow
to movement in net debt 
For the year ended 30 September 2005
2005 2004
Note £’000 £’000
Net cash flow from operating activities 28 13,420 20,960
Returns on investments and servicing of finance 29 (16,176) (4,245)
Taxation 29 (2,722) (615)
Capital expenditure 29 (9,999) (10,425)
Dividends (720) –
Financing 29 8,776 (3,313)
(Decrease)/increase in cash in period (7,421) 2,362
2005 2004
Note £’000 £’000
(Decrease)/increase in cash in period (7,421) 2,362
Capital elements of HP payments 9 14
Loan and loan note repayments 129,955 3,300
Cash inflow from new loans and loan notes (34,541) –
Change in net debt resulting from cash flows 88,002 5,676
B preference shares – (1,291)
Interest rolled up on loan notes (688) (6,436)
Other interest (75) (201)
Net movement on loan fees (4,045) (492)
New HP agreement (148) –
Conversion of loan notes to shares – 227
83,046 (2,517)
Net debt at start of year 30 (122,295) (119,778)
Net debt at end of year 30 (39,249) (122,295) 36
Jessops plc Annual report and financial statements 2005 Jessops plc
1. Accounting Policies
The following accounting policies have been applied consistently in dealing with items which are considered material in
relation to the Group’s financial statements. 
Basis of preparation
The financial statements have been prepared in accordance with applicable accounting standards and under the historical cost
accounting rules.
A separate profit and loss account for the Company has not been presented as permitted by Section 230(4) of the Companies Act 1985.
Basis of consolidation
The Group’s financial statements consolidate the accounts of Jessops plc and all its subsidiary undertakings. The accounting year ends of
subsidiary undertakings are co-terminous with those of the parent company.
Unless otherwise stated, the acquisition method of accounting has been adopted. Under this method, the results of subsidiary and
associated undertakings acquired or disposed of in the year are included in the consolidated profit and loss account from the date of
acquisition or up to the date of disposal. 
Turnover
Turnover represents the total amounts (excluding value added tax) receivable by the group, in the ordinary course of business for services
provided. 
Goodwill
Purchased goodwill (representing the excess of the fair value of the consideration given over the fair value of the separable net assets
acquired) arising on business combinations in respect of acquisitions since 1 October 1998 is capitalised. Positive goodwill is amortised to
nil by equal annual installments over its estimated useful life.
On a subsequent disposal or termination of a previously acquired business, the profit or loss on disposal or termination is calculated after
charging the amount of any related goodwill not written off through the profit and loss account, including any previously taken direct to
reserves.
Costs of acquisition and raising finance
Costs incurred in raising debt finance are deducted from the proceeds raised and are amortised over the period of finance. Costs relating
to the issue of share capital are set off against the share premium account. Costs relating directly to acquisitions are included within the
cost of investment.
Intangible fixed assets and amortisation
Amortisation is provided to write off the cost of intangible fixed assets by equal instalments over their useful economic lives as follows:
Patents and trademarks – 20 years
Tangible fixed assets and depreciation
Depreciation is provided to write off the cost less the estimated residual value of tangible fixed assets by equal instalments over their
estimated useful economic lives as follows:
Leases and lease premiums – over the terms of the respective leases
Patents and trademarks – 20 years
Freehold buildings – 50 years
Alterations to leased property – over the terms of the respective leases
Office equipment – 2 to 10 years
Fixtures and fittings, plant and machinery and vehicles – 3 to 10 years
No depreciation is provided on freehold land.
Notes to the accounts
For the year ended 30 September 2005 37
Annual report and financial statements 2005 Jessops plc
1. Accounting Policies continued
Foreign currencies
Transactions in foreign currency are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date and the gains or
losses on translation are included in the profit and loss account.
The results of Jessops (Ireland) Limited are translated at the average rate of exchange during the period, and its balance sheet at the rate
ruling at the balance sheet date. Exchange differences arising on the translation of opening net assets are reported in the statement of
total recognised gains and losses.
Leases
Where the Company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is
treated as a ‘finance lease’. The asset is recorded in the balance sheet as a tangible fixed asset and is depreciated over its estimated useful
life or the term of the lease, whichever is shorter. Future instalments under such leases, net of finance charges, are included within
creditors. Rentals payable are apportioned between the finance element, which is charged to the profit and loss account, and the capital
element which reduces the outstanding obligation for future instalments.
All other leases are accounted for as ‘operating leases’ and the rental charges are charged to the profit and loss account on a straight line
basis over the life of the lease.
Pensions and other post retirement benefits
Defined Benefit Scheme
The Group operates a pension scheme providing benefits based on final pensionable pay (defined benefit scheme). The assets of the
scheme are held separately from those of the Group.
Pension scheme assets are measured using market values. Pension scheme liabilities are measured using the projected unit method and
discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability. 
The pension scheme deficit is recognised in full. The movement in the scheme deficit is split between operating charges and finance items
and in the statement of total recognised gains and losses, actuarial gains and losses.
Defined Contribution Scheme
The Group also operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group.
The amount charged to the profit and loss account represents the employer contributions payable to the scheme in respect of the
accounting period.
Stocks
Stocks are stated at the lower of cost and net realisable value. In determining the cost of raw materials, consumables and goods
purchased for resale, the weighted average purchase price is used.
Taxation
Deferred tax is recognised without discounting in respect of all timing differences between the treatment of certain items for taxation and
accounting purposes which have arisen but not reversed by the balance sheet date, except as otherwise required by FRS19.
Financial instruments
Borrowings are stated at their nominal value less issue costs. Issue costs are written-off to the profit and loss account over the life of the
borrowing. Interest receipts and payments are accrued so as to match the income with the related financial expense. The derivative
financial instruments used by the group include forward contracts which are accounted for in accordance with generally accepted
accounting principles.
Share options
The Group has taken advantage of the dispensation in UITF 17 (revised 2000) ‘Employee Share Schemes’ so not to apply that abstract to
the Group’s Inland Revenue approved Save-As-You-Earn scheme. 38
Annual report and financial statements 2005 Jessops plc
Notes to the accounts continued
2. Segmental reporting
Turnover represents the total amount (excluding VAT) receivable by the group from sales to external customers.
Turnover and operating profit relate wholly to the retail of photo-imaging products and services. Therefore, this represents the only class
of business.
An analysis of turnover by geographical area of destination is as follows:
Turnover
2005 2004
£’000 £’000
United Kingdom 324,882 317,503
Europe 2,342 1,303
Rest of the World 157 205
327,381 319,011
An analysis of turnover, operating profit / (loss) and net assets by geographical area of origin is as follows:
Turnover Operating profit/(loss) Net assets
2005 2004 2005 2004 2005 2004
£’000 £’000 £’000 £’000 £’000 £’000
United Kingdom 326,194 319,011 14,145 12,926 83,674 (7,868)
Europe 1,187 – (386) – (386) –
327,381 319,011 13,759 12,926 83,288 (7,868)
An analysis of turnover by product type and service is as follows:
2005 2004
£’000 £’000
Cameras 159,817 149,510
Developing & Printing 30,106 32,588
Camcorders 31,172 29,259
Photographic accessories 81,212 82,301
Other photographic hardware 25,074 25,353
327,381 319,011 39
Annual report and financial statements 2005 Jessops plc
Notes to the accounts continued
3. Profit / (loss) on ordinary activities before taxation
2005 2004
£’000 £’000
Profit / (loss) on ordinary activities before taxation is stated after charging / (crediting):
Auditors’ remuneration:
Audit  – Group 115 104
– Company 10 10
Other services 39 127
Depreciation and other amounts written off tangible and intangible fixed assets:
– Owned 5,610 4,254
– Leased assets and those under similar HP contracts 6 14
Hire of assets – plant & machinery 4,500 3,835
Hire of assets – other 13,476 12,230
Amortisation of intangible assets 4,215 4,213
Exchange losses 5 5
Rent receivable from property (139) (135)
(Profit) / loss on disposal of tangible fixed assets (227) 684
£500,000 of the loss on disposal of fixed assets in the year ended 30 September 2004 is included in exceptional items and relates to
disposals made during the closure of the Distribution Centre. The Auditor’s remuneration for other services in the year related primarily to
advice on taxation matters. The Group also paid £468,000 to the Auditors in connection with the flotation.
4. Analysis of profit & loss account
2005 2004
£’000 £’000
Distribution costs – normal 70,313 66,664
Distribution costs – exceptional – 1,770
Total distribution costs 70,313 68,434
Administrative expenses – normal 20,425 16,531
Administrative expenses – exceptional – 630
Total administrative expenses 20,425 17,161
Total distribution and administrative expenses 90,738 85,595
Consists of:
Operating expenses before depreciation, amortisation and exceptional items 80,907 74,714
Depreciation and amortisation 9,831 8,481
Exceptional items (note 33) – 2,400
90,738 85,595 40
Annual report and financial statements 2005 Jessops plc
5. Staff numbers and costs
The average number of persons employed by the group (including directors), analysed by category, was as follows:
Number Full time Number Full time
of heads equivalents of heads equivalents
2005 2005 2004 2004
Administration 316 297 268 252
Selling 2,665 1,843 2,533 1,752
2,981 2,140 2,801 2,004
The aggregate payroll costs of these persons were as follows:
2005 2004
£’000 £’000
Wages and salaries 36,344 33,905
Social security costs 2,791 2,595
Other pension costs 619 790
39,754 37,290
Details of the Directors’ remuneration, share options, long term incentive schemes and Directors’ pension entitlements are disclosed in
the Directors’ remuneration report on pages 26 to 29.
6. Interest payable and similar charges
2005 2004
£’000 £’000
Interest payable on bank loans and overdrafts 2,760 4,384
Other interest payable 688 6,522
Amortisation of issue expenses 125 478
3,573 11,384
Exceptional amortisation of issue expenses (see note 33) 3,920 –
7,493 11,384
7. Other finance costs
2005 2004
£’000 £’000
Expected return on pension scheme assets (876) (742)
Interest on pension scheme liability 1,290 1,008
414 266
Notes to the accounts continued 41
Annual report and financial statements 2005 Jessops plc
Notes to the accounts continued
8. Taxation
2005 2004
£’000 £’000
UK corporation tax
Current tax on income for the period 2,393 1,780
Adjustments in respect of prior periods – 843
Total current tax charge 2,393 2,623
Deferred tax for the period arising from the origination and reversal of timing differences 934 318
Deferred tax adjustments in respect of prior periods 315 (543)
Tax on profit on ordinary activities 3,642 2,398
Factors affecting the tax charge for the current period:
2005 2004
£’000 £’000
Current tax reconciliation
Profit on ordinary activities before taxation 5,852 1,276
Current tax at 30% (2004: 30%) 1,756 383
Effects of:
Capital allowances for the period in excess of depreciation (770) (572)
Other timing differences (383) 254
Depreciation and amortisation on assets not qualifying for capital allowances 1,572 1,546
Other non-tax deductible expenditure 218 169
Adjustments in respect of prior years – 843
Total current tax charge 2,393 2,623
9. Profit for the financial year
As permitted by section 230 of the Companies Act 1985, the holding Company’s Profit & Loss Account has not been included in these
financial statements. The profit on ordinary activities after taxation within these financial statements is £3,717,000 (2004: £nil).
10. Dividends
Equity dividends – ordinary shares of 2.5 pence each:
2005 2004
£’000 £’000
Interim paid (2005: 0.7 pence per share; 2004: nil) 720 –
Final proposed (2005: 1.4 pence per share; 2004: nil) 1,440 –
2,160 – 42
Annual report and financial statements 2005 Jessops plc
11. Earnings per share
Basic earnings / (loss) per share are calculated by dividing the earnings attributable to ordinary shareholders by the weighted average
number of ordinary shares in issue during the period. The weighted average number of shares for the period prior to flotation on
3 November 2004 has been adjusted to reflect bonus issues and share reclassifications in accordance with FRS 14 (Earnings per share).
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to reflect the issue of potentially dilutive
ordinary shares. This includes warrants and share options granted to employees where the exercise price is less than the average market price.
Weighted average numbers of shares:
2005 2004
000’s 000’s
Weighted average number of shares in issue during the period 97,129 36,713
Impact of warrants and share options 60 816
Diluted weighted average number of shares in issue during the period 97,189 37,529
In addition to basic earnings / (loss) per ordinary share, an additional adjusted earnings per share has been provided which excludes
goodwill amortisation, and exceptional items (net of tax). The earnings used for the basic and additional calculations are shown below:
2005 2004
£’000 £’000
Profit / (loss) on ordinary activities after taxation 2,210 (1,122)
Exceptional operating costs (net of tax) – 1,895
Exceptional interest charge (net of tax) 2,840 –
Amortisation of goodwill 4,199 4,200
Profit after taxation excluding exceptional items and amortisation of goodwill 9,249 4,973
12. Intangible fixed assets
Group
Patents and
trademarks Goodwill Total
£’000 £’000 £’000
Cost
At 1 October 2004 256 85,342 85,598
Additions 17 – 17
At 30 September 2005 273 85,342 85,615
Amortisation
At 1 October 2004 29 8,328 8,357
Charge for period 16 4,199 4,215
At 30 September 2005 45 12,527 12,572
Net book value
At 30 September 2005 228 72,815 73,043
At 1 October 2004 227 77,014 77,241
The Directors consider the useful economic life of the goodwill to be 20 years. 
Company: The Company has no intangible fixed assets.
Notes to the accounts continued 43
Annual report and financial statements 2005 Jessops plc
Notes to the accounts continued
13. Tangible fixed assets
Group
Alterations Fixtures & 
Freehold to short fittings, plant & 
land and leasehold Office machinery
buildings property equipment & vehicles Total
£’000 £’000 £’000 £’000 £’000
Cost
At 1 October 2004 5,522 3,772 13,031 20,754 43,079
Additions 1,137 844 3,623 5,354 10,958
Disposals (610) (24) (33) (437) (1,104)
At 30 September 2005 6,049 4,592 16,621 25,671 52,933
Depreciation
At 1 October 2004 112 855 1,709 4,126 6,802
Charge for period 66 508 1,831 3,211 5,616
On disposals (87) (18) (11) (342) (458)
At 30 September 2005 91 1,345 3,529 6,995 11,960
Net book value
At 30 September 2005 5,958 3,247 13,092 18,676 40,973
At 1 October 2004 5,410 2,917 11,322 16,628 36,277
Included within the net book value of fixtures, fittings, plant and machinery and vehicles at 30 September 2005 is £142,000 (2004: £4,000)
relating to assets held under hire purchase agreements. Depreciation in the year on these items amounted to £6,000 (2004: £14,000).
The net book value of freehold land and buildings comprises £5,777,000 (2004: £5,226,000) of freehold land and buildings and
£180,000 (2004: £184,000) of long leasehold land and buildings.
Company: The Company has no tangible fixed assets.
14. Fixed asset investments
Company
Shares in subsidiary undertakings £’000
At 1 October 2004 and 30 September 2005 70
In the opinion of the directors of the company, the value of the company’s investments, consisting of shares in subsidiary undertakings,
is not less than the amount shown above.
Principal subsidiaries
The following were the principal subsidiary companies at the end of the year:
Proportion of ordinary
Subsidiary shares held Nature of business
Camera Bond Limited 100% Intermediate holding company
Camera Mezz Limited (formerly Jessops Limited)
(1)
100% Intermediate holding company
Camera Equity Limited
(1)
100% Intermediate holding company
The Jessop Group Limited 
(1)
100% Photo imaging products and services retailer
Well Hall (Jersey) Limited 
(1)
100% Photo imaging products and services retailer
Expert Imaging Limited (formerly Cameras2u.com Limited) 100% Photo imaging products and services retailer
Jessops Photographic (Ireland) Limited 
(1)
100% Photo imaging products and services retailer
All of the above subsidiaries are registered and operate in England and Wales with the exception of Jessops Photographic (Ireland) Limited
which is registered and operates in the Republic of Ireland and Well Hall (Jersey) Limited which operates in Jersey.
(1)
Not held directly by the Company. 44
Annual report and financial statements 2005 Jessops plc
15. Stocks
Group Company Group Company
2005 2005 2004 2004
£’000 £’000 £’000 £’000
Goods for resale 56,429 – 42,428 –
16. Debtors
Group Company Group Company
2005 2005 2004 2004
£’000 £’000 £’000 £’000
Amounts falling due within one year
Trade debtors 6,093 – 5,928 –
Amounts owed by group undertakings – 134,789 – 919
Other debtors 726 – 727 –
Prepayments and accrued income 4,631 – 3,885 –
11,450 134,789 10,540 919
17. Creditors: amounts falling due within one year
Group Company Group Company
2005 2005 2004 2004
£’000 £’000 £’000 £’000
Bank overdrafts –– 8,500 –
Bank loans 15,500 5,500 4,800 –
Trade creditors 42,301 – 30,624 –
Amounts owed to group companies – 7,505 ––
Other creditors including taxation and social security
Corporation Taxation 423 – 752 –
Social security 806 – 739 –
Other creditors 2,494 – 6,460 –
Accruals and deferred income 2,828 – 4,646 –
Dividends 1,440 1,440 ––
Hire purchase creditors 21 – 3–
65,813 14,445 56,524 –
Bank overdrafts are secured with both fixed and floating charges over the group’s assets.
18. Creditors : amounts falling due after more than one year
Group Company Group Company
2005 2005 2004 2004
£’000 £’000 £’000 £’000
Bank loans 27,500 27,500 53,961 –
Less issue expenses (375) (375) (3,961) –
Loan Notes –– 68,431 –
Hire purchase creditor 121 – ––
B preference shares in Camera Equity Limited 1,291 – 1,291 –
28,537 27,125 119,722 –
Notes to the accounts continued 45
Annual report and financial statements 2005 Jessops plc
Notes to the accounts continued
18. Creditors : amounts falling due after more than one year continued
Bank loan (from 1 October 2003 to flotation)
On 23 October 2002, a senior loan facility of £77,000,000, and a mezzanine debt facility of £6,000,000 were received. The senior loan
facility consisted of £57,000,000 of debt and a revolving credit facility of £20,000,000.
The Senior Facility “A” Loan of £ 43,500,000 was repayable in instalments from 30 March 2003 to 30 September 2009. The Senior
Facility “B” Loan of £13,500,000 was repayable in full as a lump sum on maturity on 30 September 2010. The revolving credit facility
was repayable in full on 30 September 2009.
Interest on Facility “A” Loan and any Revolving Facility Loan represented LIBOR plus a margin of 2.25% per annum. Interest on Facility
“B” Loan represented LIBOR plus a margin of 2.75% per annum. 
The mezzanine debt of £6,000,000 was repayable in full as a lump sum on 30 September 2011 including rolled-up interest. Interest was
calculated as the aggregate of the applicable margin, LIBOR and mandatory cost, if applicable.
There was also an overdraft facility of £5,000,000.
These facilities were secured by a fixed and floating charge over the Group’s assets.
The full outstanding value of both facilities was repayable in the event of a:-
(i) a trade sale of the whole, or substantially the whole, of the Group’s business and assets.
(ii) a flotation where (a) ABN AMRO ceased to indirectly or directly own more than 30% of the aggregate issued share capital of the
company carrying the right to vote and ceases to be the largest beneficial owner of shares or (b) the senior management ceased to
indirectly or directly beneficially own more than 6% of the issued share capital.
(iii) A change of control in which (a) the investors ceased to control the parent, or (b) ABN AMRO ceased to be the beneficial owner of more
than half of the aggregate issued share capital carrying the right to vote or (c) where Camera Holdings Limited ceased to hold all of the
issued share capital of Camera Bond Limited or (d) Camera Bond Limited ceased to hold all of the issued share capital of Jessops Limited.
These facilities were therefore repaid on flotation on 3 November 2004. Unamortised issue costs of £3,920,000 were written off at the
time of the repayment (see note 33).
Bank loan since flotation
On 3 November 2004 the Company entered into a £55,000,000 loan facility. The facility consists of £35,000,000 of term loan facility
and a £20,000,000 revolving credit facility.
The term loan is repayable in instalments from 30 April 2005 to 31 October 2009. The revolving credit facility is repayable in full on
31 October 2009.
Interest on both term loan and revolving credit facility is payable at the rate of LIBOR plus a margin of between 0.65% and 1.25%
depending on covenant fulfilment.
The facilities are secured by a fixed and floating charge over the Group’s assets.
There is also an overdraft facility of £5,000,000.
Hire purchase agreements
Obligations under hire purchase agreements are secured upon the assets to which they relate.
Loan notes
On the 23 October 2002, the following loan notes and bonds were issued:-
(a) £51,578,526 of Deep Discounted Bonds were issued, accruing interest at the rate of 10% per annum, which was compounded to be
quarterly at 2.5% until the repayment date in 2012. 
(b) £4,979,565 of Fixed Rate Unsecured Loan Notes were issued, accruing interest at the rate of 10% per annum, which was to be
compounded quarterly at 2.5% until the repayment date in 2012. 
(c ) £269,299 of Nil Coupon Unsecured Loan Notes were issued. On 23 April 2003, £41,842 were redeemed when converted into shares
and the remaining £227,457 were also redeemed on conversion to shares on 23 January 2004.
All of the loan notes, together with rolled up interest were repaid on flotation on 3 November 2004.
B preference shares in Camera Equity Limited
The B Preference shares in Camera Equity Limited are entitled to interest which accrues on a daily basis and is payable on 1 April and 
1 October. The net of tax interest accrues at 5.2% of nominal value per annum. The B Preference shareholders can attend general and
other meetings of Camera Equity Limited but cannot vote at these meetings except in relation to class consent where the rights of this
shareholder interest and/or capital will be affected by events/ actions proposed by the Company. 46
Annual report and financial statements 2005 Jessops plc
19. Borrowings
Group Company Group Company
2005 2005 2004 2004
Analysis of total loan and overdraft repayments £’000 £’000 £’000 £’000
Due within one year or on demand 15,500 5,500 13,300 –
Between one and two years 7,500 7,500 5,800 –
Between two and five years 20,000 20,000 28,301 –
After five years –– 88,291 –
43,000 33,000 135,692 –
Group Company Group Company
2005 2005 2004 2004
Analysis of obligations under hire purchase agreements £’000 £’000 £’000 £’000
Due within one year or on demand 21 – 3–
Between one and two years 21 – ––
Between two and five years 63 – ––
After five years 37 – ––
142 – 3–
20. Financial instruments
The Group’s financial instruments, other than derivatives, comprise borrowings, some cash and liquid resources and various items, such as
trade debtors, trade creditors etc, that arise directly from its operations. The main purpose of these financial instruments is to raise
finance for the Group’s operations. The Group also enters into derivatives transactions when appropriate. The purpose of such
transactions is to manage the interest rate and currency risks arising from the Group’s operations and its sources of finance.
As permitted by FRS13 (Derivatives and other financial instruments), short term debtors and creditors have been excluded from the
disclosures, other than the currency disclosures.
Interest rate
The interest rate profile of the Group’s liabilities is as follows
Total Floating Rate Fixed Rate
£’000 £’000 £’000
30 September 2005 43,000 43,000 –
30 September 2004 135,692 67,261 68,431
At 30 September 2005, the bank loan bears interest at floating rate as described in note 18. The Group has an interest rate collar to
hedge its exposure to interest rate fluctuations. The instrument caps the floating rate (before margin) at 5.00% and has a minimum
floating rate of 4.02%.
At 30 September 2004, both bank loans bear interest at floating rates and the loan notes bear interest at fixed rates as described in note
18. The Group has interest rate collars to reduce the exposure of the Group to fluctuations in interest rates. The Group has hedged its
exposure to interest rate fluctuations by entering an agreement which covered in excess of 70% of the senior facility. The instrument caps
the floating rate (before margin) at 5.00% and has a minimum floating rate of 4.02%.
The groups financial assets totalling £4,809,000 (30 September 2004: £10,730,000) earn interest at floating rate based on the Bank of
England base rate.
The B preference shares in Camera Equity Limited carry a fixed dividend of 5.2% per annum. The shares are denominated in sterling.
The fair values of the preference shares are not materially different to the carrying values.
Notes to the accounts continued 47
Annual report and financial statements 2005 Jessops plc
Notes to the accounts continued
20. Financial instruments continued
Currency exposure
All group borrowings are denominated in sterling.
With the exception of Jessops Photographic (Ireland) Limited where the functional currency is the Euro, all of the other Group companies
operate in sterling. At 30 September 2005, Jessops Photographic (Ireland) Limited did not hold any assets or liabilities not denominated in
Euros. The principal differences on exchange which are taken to the profit and loss account arise where purchases are made in currencies
other than sterling.
A proportion of the group’s purchases are denominated in US Dollar, Euro and Japanese Yen. The aggregate carrying value of financial
assets and liabilities denominated in currencies is as follows:
2005 2004
£’000 £’000
US Dollar – Cash 143 91
US Dollar – (Trade creditors)/ Payments on account (147) (42)
Euro – Cash 383 565
Euro – (Trade creditors)/ Payments on account (100) (141)
Japanese Yen – Cash 8 21
Japanese Yen – (Trade creditors)/ Payments on account 27 (3)
There were no outstanding forward contracts at the year end (30 September 2004: nil).
Maturity of financial liabilities
The maturity of financial obligations is set out in note 19. The maturity profile of the Group’s un-drawn borrowing facilities is as follows:
2005 2004
£’000 £’000
Expiring between one and two years 5,000 –
Expiring in more than two years 10,000 31,469
Fair value of financial assets and liabilities
Set out below is a comparison of the book values and fair values of the Group’s financial assets and liabilities at 30 September 2005:
2005 2005 2004 2004
Book Fair Book Fair
value value value value
£’000 £’000 £’000 £’000
Primary financial instruments held to finance the Group’s operations:
Cash at bank and in hand 4,809 4,809 10,730 10,730
Short-term borrowings (15,500) (15,500) (13,300) (13,300)
Long-term borrowings (27,500) (27,500) (122,392) (122,392)
B preference shares in Camera Equity Limited (1,291) (1,291) (1,291) (1,291)
Finance leases (142) (142) (3) (3)
Interest rate collar –– – (95)
(39,624) (39,624) (126,256) (126,351) 48
Annual report and financial statements 2005 Jessops plc
21. Provisions for liabilities and charges
Deferred
Other taxation Total
£’000 £’000 £’000
At 1 October 2004 664 730 1,394
Movement for the year (664) 1,249 585
At 30 September 2005 – 1,979 1,979
The other provision at 30 September 2004 related to onerous leases which have been disposed in the year.
2005 2004
Provided Movement Provided
The amounts provided for deferred taxation are set out below: £’000 £’000 £’000
Accelerated capital allowances 2,365 238 2,127
Other timing differences (386) 1,011 (1,397)
1,979 1,249 730
The deferred tax asset on pension liability is £3,037,000 (2004: £3,190,200).
22. Share capital
Analysis of share capital
Value Number
2005 2004 2005 2004
£’000 £’000
Authorised
Equity share capital
Ordinary shares of 2.5 pence each 3,500 – 140,000,000 –
Ordinary shares of £1 each – 200 – 200,000
A Ordinary Shares of 1 pence each – 8 – 820,408
Total authorised share capital 3,500 208 140,000,000 1,020,408
Allotted, called up and fully paid
Equity share capital
Ordinary shares of 2.5 pence each 2,571 – 102,837,523 –
Ordinary shares of £1 each – 189 – 188,800
A Ordinary Shares of 1 pence each – 8 – 800,000
Total issued share capital 2,571 197 102,837,523 988,800
On 3 November 2004, 20,408 A ordinary shares of £0.01 were issued at par to HSBC Investment Bank plc following the exercise of its warrant.
On 3 November 2004 the authorised share capital of the Company was increased from £208,204.08 to £3,500,000 by the creation of
99,183,680 new Ordinary shares of 2.5 pence each and 81,220,392 A ordinary shares of 1 pence each.
On 3 November 2004, the Company issued 62,469,203 Ordinary shares of 2.5 pence each at £1.55 per share raising £96,828,000 of
proceeds before expenses.
On 3 November 2004, by way of a bonus issue, 81,220,392 A ordinary shares of £0.01 were unconditionally issued, created as fully paid
to the existing holders of A ordinary shares in the proportion of 99 A ordinary shares for each A ordinary share held by them on such
date. The share premium account was debited with £812,000 as a result of this bonus issue.
On 3 November 2004, immediately following the issue of 81,220,392 A ordinary shares described above, every 5 A ordinary shares of
£0.01 in the issued share capital of the Company were consolidated into and reclassified as 2 Ordinary shares of 2.5 pence each.
On 3 November 2004, each of the 188,800 Ordinary shares of £1 each were subdivided into 40 Ordinary shares of 2.5 pence each and
each of the 11,200 unissued Ordinary shares of £1 each were subdivided into 40 Ordinary shares of 2.5 pence each.
Notes to the accounts continued 49
Annual report and financial statements 2005 Jessops plc
Notes to the accounts continued
22. Share capital continued
Share options
The Company has two employee share option schemes which were created during the year.
Jessops Executive Share Option Scheme
The Jessops Executive Share Option Scheme is a discretionary option scheme under which the Remuneration Committee may grant
options to all full time directors of the group and employees who are required to devote substantially the whole of their working hours to
the business of the group. The scheme is subject to performance conditions. 
The performance condition is that an option will not be exercisable unless the growth in Earnings Per Share (EPS) of the company over three
consecutive financial years (commencing with the financial year in which the option is granted) exceeds the growth in Retail Prices Index (RPI)
over the same period by at least 5% per annum. For EPS growth equaling 10% above the growth in RPI, the options are exercisable in
respect of 100% of the shares comprised in them. For growth in EPS between 5% and 10% per annum above RPI, the percentage of shares
comprised in the option in respect of which it is capable of exercise will be determined on a proportionate straight line basis.
Early exercise of the options is permitted if an option holder ceases to be employed by reason of death, injury, disability, redundancy,
retirement or the sale of his employing company or business.
Jessops Savings-Related Share Option Scheme
The Jessops Savings-Related Share Option Scheme is a Save-As-You-Earn (SAYE) scheme and is open to all directors and employees with
eligible employment service. Option holders may exercise the options at the relevant price at the end of either a three or five year saving
period from the date of grant. Special provisions allow for early exercise in the case of death, injury, disability, redundancy, retirement or if
the business which employs the optionholder ceases to be controlled by the company or is transferred out of the group.
At 30 September 2005, the following options were outstanding:
Exercise
Number of Earliest date Expiry price
shares of exercise date Pence
Jessops Executive Share Option Scheme 908,836 02.11 2007 02.11.2014 155
940,202 17.01.2008 17.01.2015 162
109,375 09.02.2008 09.02.2015 160
96,384 19.05.2008 19.05.2015 83
321,766 09.09.2008 09.09.2015 79 
1
/4
SAYE – 3 year option 669,852 24.11.2007 24.05.2008 122
SAYE – 5 year option 420,030 24.11.2009 24.05.2010 122
23. Reserves
Group 
Profit Share
and Loss Premium
Account Account Total
£’000 £’000 £’000
As at 1 October 2004 (8,857) 792 (8,065)
Retained profit for the period 50 – 50
Actuarial gain recognised in pension scheme 516 – 516
Deferred tax arising on gain in pension scheme (155) – (155)
Deferred tax on current year pension charge 2 – 2
Issue of shares on flotation – 95,266 95,266
Finance cost of share issue written off to share premium – (6,085) (6,085)
Bonus issue of A ordinary shares – (812) (812)
As at 30 September 2005 (8,444) 89,161 80,717 50
Annual report and financial statements 2005 Jessops plc
23. Reserves continued
Company Profit Share
and Loss Premium
Account Account Total
£’000 £’000 £’000
As at 1 October 2004 – 792 792
Retained profit for the period 1,557 – 1,557
Issue of shares on flotation – 95,266 95,266
Finance cost of share issue written off to share premium – (6,085) (6,085)
Bonus issue of A ordinary shares – (812) (812)
As at 30 September 2005 1,557 89,161 90,718
24. Commitments
(i) There were no capital commitments made as at 30 September 2005. (2004: nil)
(ii) Annual commitments under non-cancellable operating leases are as follows:
Motor Land and Plant and Motor Land and Plant and
Vehicles Buildings Machinery Vehicles Buildings Machinery
2005 2005 2005 2004 2004 2004
£’000 £’000 £’000 £’000 £’000 £’000
Operating leases which expire:
Within one year 79 1,273 519 47 1,321 830
In the second to fifth years inclusive 181 2,338 2,680 165 2,340 2,470
Over five years – 9,386 – – 7,405 –
260 12,997 3,199 212 11,066 3,300
25. Contingent liability
The company and certain of its subsidiaries have given joint and several guarantees in connection with all bank facilities provided by the
group’s principal bankers. The liabilities under these guarantees at 30 September 2005 amounted to £43,000,000 (30 September 2004:
£67,261,000).
26. Reconciliation of movements in shareholders’ funds
Group Company Group Company
2005 2005 2004 2004
£’000 £’000 £’000 £’000
Profit / (loss) for the financial year 50 1,557 (1,122) –
Net additions to shareholders funds 50 1,557 (1,122) –
Actuarial gain / (loss) recognised in pension scheme 516 – (3,200) –
Deferred tax arising on actuarial (gain) / loss in pension scheme (155) – 960 –
Deferred tax on current year pension charge 2– (50) –
New share capital issued (net of issue costs) 90,743 90,743 228 228
Net movement in shareholders’ funds 91,156 92,300 (3,184) 228
Opening shareholders’ funds (7,868) 989 (4,684) 761
Closing shareholders’ funds 83,288 93,289 (7,868) 989
Notes to the accounts continued 51
Annual report and financial statements 2005 Jessops plc
Notes to the accounts continued
27. Pension schemes
The group operates a defined benefit pension scheme, The Jessops Group Limited Pension and Life Assurance Scheme 1993.
The group also operates a defined contribution scheme. Contributions at the agreed rates have been made. The charge for the year was
£207,000.
Defined benefit pension scheme
The latest full actuarial valuation was carried out at 1 June 2004 and was updated for FRS17 purposes to 30 September 2005 by a
qualified independent actuary. The major assumptions used in this valuation were:-
2005 2004
%%
Rate of increase in salaries 3.25 3.75
Rate of increase in pensions in payment and deferred pensions 2.75 2.75
Discount rate applied to scheme liabilities 5.10 5.50
Inflation assumptions 2.75 2.75
The Jessop Group Limited contributed £90,000 per month to the Scheme in the period 1 October 2004 to 30 September 2005.
The assumptions used by the actuary are the best estimates chosen from a range of possible actuarial assumptions which, due to the
timescale covered, may not necessarily be borne out in practice.
Scheme assets
The fair value of the scheme’s assets, which are not intended to be realised in the short term and may be subject to significant change
before they are realised, and the present value of the scheme’s liabilities, which are derived from cash flow projections over long periods
and thus inherently uncertain, were:
2005 2004
Long-term Long-term
expected rate expected rate
of return Value of return Value
% £’000 % £’000
Equities 7.30 13,688 7.80 10,400
Bonds 4.70 1,521 5.20 1,562
Cash 4.50 1,115 4.75 632
Total market value of assets 16,324 12,594
Present value of scheme liabilities (26,448) (23,228)
Deficit in the scheme (10,124) (10,634)
Related deferred tax asset 3,037 3,190
Net pension liability (7,087) (7,444)
Movement in deficit for year:
2005 2004
£’000 £’000
Deficit at start of year (10,634) (7,600)
Current service cost (672) (528)
Contributions paid 1,080 960
Past service cost – –
Other finance income / (cost) (414) (266)
Actuarial gain / (loss) 516 (3,200)
(10,124) (10,634) 52
Annual report and financial statements 2005 Jessops plc
27. Pension schemes continued
An analysis of the amount charged to operating profit is as follows:
2005 2004
£’000 £’000
Current service cost 672 528
Past service cost – –
Total operating charge 672 528
Analysis of amounts included in finance costs:
2005 2004
£’000 £’000
Expected return on pension scheme assets 876 742
Interest on pension scheme liabilities (1,290) (1,008)
(414) (266)
Analysis of amount recognised in statement of total recognised gains and losses included in finance costs:
2005 2004
£’000 £’000
Actual return less expected return on pension scheme assets 2,003 462
Experience gains and losses arising on pension scheme liabilities – (537)
Changes in assumptions underlying the present value of scheme liabilities (1,487) (3,125)
Actuarial gain/(loss) recognised 516 (3,200)
A history of experience gains and losses over the period is as follows:
2005 2004
Difference between the expected and actual return on assets
Amount (£’000) 2,003 462
Percentage of scheme assets 12% 4%
Experience gains and losses on scheme liabilities
Amount (£’000) – (537)
Percentage of scheme liabilities 0% –2%
Total amount recognised in statement of total recognised gains and losses
Amount (£’000) 516 (3,200)
Percentage of scheme liabilities 2% –14%
Notes to the accounts continued 53
Annual report and financial statements 2005 Jessops plc
Notes to the accounts continued
28. Reconciliation of operating profit to net cash inflow from operating activities
2005 2004
£’000 £’000
Operating profit 13,759 12,926
Depreciation and amortisation 9,831 8,481
(Profit) / loss on disposal of fixed assets (227) 684
Increase in stock (14,001) (1,271)
Increase in debtors (910) (828)
Increase in creditors 6,040 1,406
Decrease in provisions (664) (6)
Pension contributions in excess of charge (408) (432)
Net cash flow from operating activities 13,420 20,960
29. Analysis of cash flows for headings netted in the cash flow statement
2005 2004
£’000 £’000
Returns on investments & servicing of Finance
Interest paid (15,717) (4,245)
Issue costs in respect of new bank loans (459) –
(16,176) (4,245)
Taxation
Corporation tax (2,722) (615)
Capital expenditure
Intangible fixed assets acquired (17) (2)
Tangible fixed assets acquired (10,810) (10,423)
Proceeds from sale of fixed assets 828 –
(9,999) (10,425)
Financing
Loan notes repaid (56,558) –
Bank loans repaid (60,400) (3,300)
New bank loans 35,000 –
New shares issued 96,828 1
Expenses in relation to issue of new shares (6,085) –
Capital element of finance leases (9) (14)
8,776 (3,313) 54
Annual report and financial statements 2005 Jessops plc
30. Analysis of net debt 
At 1 At 30 
October Other non September
2004 Cashflow cash changes 2005
£’000 £’000 £’000 £’000
Cash at bank and in hand 10,730 (5,921) 4,809
Bank overdraft (8,500) (1,500) (10,000)
2,230 (7,421) (5,191)
Debt due within one year (4,800) 2,800 (3,500) (5,500)
Debt due after one year (118,431) 92,614 (1,308) (27,125)
B Preference shares (1,291) –– (1,291)
Hire purchase creditor (3) 9 (148) (142)
Net debt (122,295) 88,002 (4,956) (39,249)
Non-cash changes relate to the interest accrued on both loan notes and other loans rolled up into the creditor, amortisation of capitalised
issue costs and new hire purchase agreement started in the year.
31. Controlling interest
ABN AMRO Bank NV, through its UK venture capital business, had a controlling interest in Jessops plc at 30 September 2004 and until
flotation on 3 November 2004. 
32. Related party transactions
During the year, the Group paid £nil (year ended 30 September 2004: £41,500) of fees to ABN AMRO in respect of Non-executive
Director services provided by two of their employees, D Collier and S Tuttle.
Interest of £557,000 (year ended 30 September 2004: £5,938,000) accrued on the deep discounted bonds held by ABN AMRO Capital.
The deep discounted bonds and accrued interest totaling £63,033,000 were repaid on flotation on 3 November 2004.
Interest accrued on loan notes held by TAE Brookes, D Hine and J Crabtree of £57,000 (year ended 30 September 2004: £217,000). 
The loan notes and accrued interest totalling £2,658,000 were repaid on flotation on 3 November 2004.
No other amounts were due to or from any related parties at 30 September 2005 or 30 September 2004. 
33. Exceptional items
On flotation, the loan notes and existing bank loans were repaid in full. The unamortised deferred finance costs of £3,920,000 relating to
these borrowings were therefore written off. 
In the year ended 30 September 2004, exceptional items were:
(i) distribution costs of £1,770,000 relating to the closure of the Distribution Centre;
(ii) administrative expenses of £630,000 comprising £156,000 in respect of aborted acquisition costs of a photographic business and
£474,000 in respect of the summer advertising campaign aborted because of the planned flotation.
Notes to the accounts continued 55
Jessops plc Annual report and financial statements 2005 Jessops plc
Store list 
for Jessops stores
ABERDEEN
31-33 Market Street 0845 458 7011
ABERYSTWYTH
23 Chalybeate Street 0845 458 7012
6 Sqwar Owain Glyndwr 0845 458 7013
ALTRINCHAM
32 Stamford New Road 0845 458 7014
ANDOVER
Unit 40 Chantry Way 0845 458 7018
ASHFORD, KENT
24 County Square 0845 458 7015
AYLESBURY
10 High Street 0845 458 7016
AYR
51 High Street 0845 458 7017
BALLYMENA
35 Tower Centre
Wellington Street 0845 458 7019
BANBURY
Unit 3, Castle Centre 0845 458 7020
BARNSTAPLE
86 High Street 0845 458 7021
BARROW IN FURNESS
32 Portland Walk 0845 458 7022
BASILDON
Unit 15, East Square 0845 458 7023
BASINGSTOKE
2/3 Market Place 0845 458 7024
3 Castle Square 0845 458 7025
BATH
Unit 8 Shires Yard
Milsom Street 0845 458 7026
49 Southgate 0845 458 7027
BEDFORD
5 Market Hall
The Arcade 0845 458 7028
6 High Street 0845 458 7029
BECKTON
Unit 18, Gallions Reach
Shopping Park
Armada Way 0845 458 7030
BELFAST
19/21 High Street 0845 458 7031
7 Arthur Square 0845 458 7032
BEVERLEY
57 Toll Gavel 0845 458 7035
BIRMINGHAM
Bullring, Unit SU521 0845 458 7033
35 Colmore Row 0845 458 7034
Unit 3, 55 Temple Row 0845 458 7036
Grosvenor Centre, Northfield 0845 458 7233
BLACKBURN
26 King William Street 0845 458 7037
BLACKPOOL
59-61 Abingdon Street 0845 458 7038
BLUEWATER
68 Lower Thames Walk
Bluewater 0845 458 7039
BOLTON
34 Newport Street 0845 458 7040 
The Bandstand,
Middlebrook Park 0845 458 7059
BOURNEMOUTH
20 Gervis Place 0845 458 7041
2Castlepoint, Unit W5
Showrooms West
Castle Lane West 0845 458 7042
BRACKNELL
Princess Square
Shopping Centre 0845 458 7043
BRADFORD
6 Bank Street 0845 458 7044
44 Kirkgate 0845 458 7045
BRIGHTON
125 Queens Road 0845 458 7046
154 Western Road 0845 458 7047
78 London Road 0845 458 7048
BRISTOL
98 Whiteladies Road
Clifton 0845 458 7049
8 St Augustines Parade 0845 458 7050
Rupert Street 0845 458 7052
BROMLEY
203 The Glades
Shopping Centre 0845 458 7053
4/5 Market Square 0845 458 7054
BURTON
30 The Octagon Centre
New Street 0845 458 7055
BURY
Millgate Shopping Centre 0845 458 7056
BURY ST EDMUNDS
6 The Traverse 0845 458 7057
BUXTON
58 Spring Garden 0845 458 7058
CAMBERLEY
10 Grace Reynolds Walk 0845 458 7060
CAMBRIDGE
38-39 Green Street 0845 458 7061
71 Bridge Street 0845 458 7062
CANNOCK
3 Market Hall Precinct 0845 458 7063
CANTERBURY
126 Sturry Road 0845 458 7064
7 Mercery Lane 0845 458 7065
CARDIFF
41 The Hayes 0845 458 7066
9 Duke Street 0845 458 7067
CARLISLE
9 Devonshire Street 0845 458 7068
14/16 English Street 0845 458 7069
CARMARTHEN
21 Red Street 0845 458 7071
CHELMSFORD
97-98 High Street 0845 458 7072
CHELTENHAM
110-112 High Street 0845 458 7073
257 High Street 0845 458 7074
CHESTER
Grosvenor Street 0845 458 7075
31 St Werburgh Street 0845 458 7076
CHESTERFIELD
5D Market Place 0845 458 7078
CHICHESTER
61 East Street 0845 458 7079
CIRENCESTER
6 Market Place 0845 458 7081
COLCHESTER
100 High Street 0845 458 7082
COVENTRY
21A Cross Cheaping
(The Burgess) 0845 458 7083
32 Hertford Street 0845 458 7084
CRAWLEY
3 The Marletts 0845 458 7089
CREWE
8 Victoria Centre 0845 458 7085
CRIBBS CAUSEWAY
Unit 001A, The Mall 0845 458 7051
CROYDON
138/140 North End 0845 458 7087
6 High Street 0845 458 7088   
1 Trafalgar Way,
Purley Way* 0845 458 7090
DARLINGTON
9 High Row 0845 458 7091
DERBY
The Spot 0845 458 7092
DONCASTER
12 Cleveland Street 0845 458 7093
3/4 Baxter Gate 0845 458 7094
DUBLIN
111 Grafton Street 0167 96077
DUMFRIES
73 High Street 0845 458 7095
DUNDEE
39 Reform Street 0845 458 7096
DURHAM
19 High Street 0845 458 7097
EASTBOURNE
Unit 36 Arndale Centre 0845 458 7101
EAST KILBRIDE
8 Princes Mall 0845 458 7102
EDINBURGH
27 Shandwick Place 0845 458 7103
Unit 35D, Kinnaird
Retail Park
New Craighall Road 0845 458 7104
The Gyle Shopping Ctr* 0845 458 7106
EXETER
82 Fore Street 0845 458 7105
FAREHAM
45 Osborne Square 0845 458 7108
GLASGOW
109 Union Street 0845 458 7113
282 Sauchiehall Street 0845 458 7114
The Fort, Unit
18, Auchinlea Retail Park,
Gartshore 0845 458 7116
Unit 3-5,
Buchanan Galleries
6 Sauchiehall Street 0845 458 7115
GLOUCESTER
18 The Oxbode 0845 458 7118
GREAT YARMOUTH
7 Market Gate
Shopping Centre 0845 458 7119
GRIMSBY
2 Victoria Street 0845 458 7120
GUERNSEY
3-5 Le Pollet, St Peter Port 0845 458 7122
GUILDFORD
49 North Street 0845 458 7121
HALIFAX
1 Corn Street 0845 458 7124
HANLEY
6 Charles Street, East
Precinct 0845 458 7125 56
Jessops plc Annual report and financial statements 2005 Jessops plc
Store list for Jessops stores continued
HARLOW
Civic Walk,
The Water Gardens
College Square 0845 458 7137
HARROGATE
45 James Street 0845 458 7126
HARROW
16a St.Annes Shopping
Centre 0845 458 7127
HASTINGS
Priory Meadow Shopping
Centre 0845 458 7128
HEMEL HEMPSTEAD
248 Marlows
Edmonds Parade 0845 458 7129
HEREFORD
23 Maylord Street
Maylord Centre 0845 458 7130
HIGH WYCOMBE
19-21 Whitehart Street 0845 458 7131
HORSHAM
Unit 15, Swan Walk 0845 458 7132
HUDDERSFIELD
6 Queen Street 0845 458 7133
75 New Street 0845 458 7134
HULL
15 Jameson Street 0845 458 7135
Junction Retail Park
St. Andrews Quay 0845 458 7123
ILFORD
211 High Road 0845 458 7138
ILKESTON
25 Bath Steet 0845 458 7139
INVERNESS
44 Union Street 0845 458 7140
IPSWICH
11 Upper Brook Street 0845 458 7141
51 Buttermarket 0845 458 7142
ISLE OF MAN
Douglas
Unit 1A Strand Shopping
Centre 0845 458 7143
ISLE OF WIGHT
Newport
95/96 St. James Street 0845 458 7144
JERSEY
45A King Street
St Helier 0845 458 7147
KENDAL
7 Finkle Street 0845 458 7150
KETTERING
29 Gold Street 0845 458 7151
KIDDERMINSTER
25 Vicar Street 0845 458 7153 
KINGS LYNN
68 High Street 0845 458 7154
KINGSTON UPON THAMES
42 Fife Road 0845 458 7155
99-101 Clarence Street 0845 458 7156
LAKESIDE
Unit 100 0845 458 7159
LANCASTER
5 Cheapside 0845 458 7160
LEAMINGTON
63 Regent Street 0845 458 7161
66 The Parade 0845 458 7162
LEEDS
30 The Headrow 0845 458 7163
51-53 Wade Lane
Merrion Centre 0845 458 7165
26 Commercial Street 0845 458 7166
LEICESTER
125 Hinckley Road 0845 458 7167
43 Granby Street 0845 458 7168
LICHFIELD
15 Bakers Lane
3 Spires Shopping Cntr. 0845 458 7169
LINCOLN
329 High Street 0845 458 7170
LISBURN
48 Bow Street 0845 458 7172
LIVERPOOL
19-21 Williamson Street 0845 458 7173
LIVINGSTON
58 Almondvale Centre
Almondvale South 0845 458 7174
LLANDUDNO
54 Mostyn Street 0845 458 7175
LONDON:
CANARY WHARF
Cabot Place East 
Canada Square 0845 458 7180
CLAPHAM JUNCTION
85 St.Johns Road 0845 458 7181
EALING
10 New Broadway 0845 458 7182
POULTRY
Unit 8, No 1 The Poultry 0845 458 7183
MOORGATE
120 Moorgate 0845 458 7184
FENCHURCH STREET
113 Fenchurch Street 0845 458 7185
FLEET STREET
46 Fleet Street 0845 458 7186
CANNON STREET
Unit 1, Cannon Street
Station 0845 458 7187
GREENFORD
2 Westway Cross
1000 Greenford Road 0845 458 7188
HAMMERSMITH
89 King Street 0845 458 7189
HOUNSLOW
295 High Street 0845 458 7190
ISLINGTON
42 Upper Street 0845 458 7191
HAMPSTEAD
9A Hampstead
High Street 0845 458 7192
FINCHLEY ROAD
11 Frognall Parade
Finchley 0845 458 7193
PUTNEY
39-41 High Street 0845 458 7194
WESTMINSTER
43 Strutton Ground 0845 458 7195
TOTTENHAM COURT ROAD
154 Tottenham Court
Road 0845 458 7196
KENSINGTON
360 Kensington
High Street 0845 458 7198
WHITELEYS CENTRE
Unit 28, Whiteleys Ctr.
133-165 Queensway 0845 458 7199
NEW OXFORD STREET
63-69 New Oxford Street 0845 458 7201
HOLBORN
Unit 1A 
The Eye Procter St WC1V 0845 458 7202
JESSOPS CLASSIC
67 Great Russell Street 0845 458 7203
STRAND
443 The Strand 0845 458 7204
WIMBLEDON
10 The Broadway 0845 458 7327
BRENT CROSS
G1 Brent Cross Retail Pk* 0845 458 7205
LONDONDERRY
Unit 6 Foyleside Centre
Orchard Street 0845 458 7176
LOUGHBOROUGH
1 Macauley House, 
Cattlemarket* 0845 458 7206
LOWESTOFT
44 London Road North 0845 458 7177
LUTON
47 Arndale Shopping
Centre 0845 458 7178
LYTHAM ST. ANNES
49 St. Annes Road West
St Annes on Sea 0845 458 7179
MACCLESFIELD
24 Mill Street 0845 458 7207
MAIDENHEAD
94 High Street 0845 458 7208
MAIDSTONE
29 High Street 0845 458 7209
Unit 245 Chequers
Centre 0845 458 7210
MANCHESTER
50-52 Deansgate 0845 458 7211
St. Peters Square 0845 458 7212
Unit 20 Fort Retail Park 0845 458 7223
MANSFIELD
25 Market Place 0845 458 7221
MEADOWHALL
Sheffield
Unit J,16 Market Street 0845 458 7214
MELTON MOWBRAY
5 Market Place 0845 458 7217
MERRY HILL
Unit U37, Brierley Hill 0845 458 7215
Unit 11a, Station Drive
Brierley Hill 0845 458 7216
METRO CENTRE
Unit 1/10 Galleria 0845 458 7112
MIDDLESBROUGH
7 Newport Road 0845 458 7218
MILTON KEYNES
2 New Road, Eldergate 0845 458 7219
Centre: MK
68 Midsummer Arcade 0845 458 7220
NEWARK
23a Middlegate, 
Buttermarket Shopping Ctr* 0845 458 7240
NEWBURY
66/67 Northbrook Street 0845 458 7224 57
Jessops plc Annual report and financial statements 2005 Jessops plc
NEWCASTLE-UNDER-LYME
Unit 16
Roebuck Centre 0845 458 7225
NEWCASTLE-UPON-TYNE
23 Newgate Street 0845 458 7228
NEWPORT, GWENT
31 John Frost Square 0845 458 7229
NEWRY
Unit 5, 
The Buttercrane Centre,
Buttercrane Quays 0845 458 7230
NORTHAMPTON
1 Abington Square 0845 458 7231
16b Peacock Place
Abington Street 0845 458 7232
NORWICH
9 Westlegate 0845 458 7234
3 St Stephens Street 0845 458 7235
LG10 Chapelfields 0845 458 7239
NOTTINGHAM
3 Cheapside 0845 458 7236
32 Market Street 0845 458 7237
NUNEATON
3 Abbey Street 0845 458 7238
OXFORD
16 High Steet 0845 458 7242
63 George Street 0845 458 7243
OSWESTRY
3 Bailey Street 0845 458 7241
PENZANCE
8a The Terrace
Market Jew Street 0845 458 7246
PERTH
45 High Street 0845 458 7247
PETERBOROUGH
Unit 3
Queensgate Centre 0845 458 7248
8 Cowgate 0845 458 7249
PETERSFIELD
Unit 20, Rams Walk 0845 458 7250
PLYMOUTH
Unit F, Armada Centre 0845 458 7251
102 Cornwall Street 0845 458 7252
POOLE
91 Dolphin Centre 0845 458 7253
PORTSMOUTH
15 Arundel Street 0845 458 7254
PRESTON
88 Fishergate 0845 458 7255
READING
31 Queen Victoria Street 0845 458 7258
7 Duke Street 0845 458 7259
REDDITCH
2 Walford Walk
Kingfisher Shopping
Centre 0845 458 7260
REDHILL
50/52 Station Road 0845 458 7261
RICHMOND
3 The Quadrant 0845 458 7262
ROMFORD
11 Stewards Walk 0845 458 7263
ROTHERHAM
Unit 31Retail World,
Stadium Way* 0845 458 7266
RUGBY
39 Regent Street 0845 458 7264
10 Church Street 0845 458 7265
SALISBURY
Unit 3T, Old George Mall 0845 458 7268
SCARBOROUGH
20 Westborough 0845 458 7269
SCUNTHORPE
70 High Street 0845 458 7267
SHEFFIELD
9 Commercial Street 0845 458 7270
SHREWSBURY
41 Castle Street 0845 458 7271
67 Mardol 0845 458 7273
SLOUGH
16 Queensmere 0845 458 7274
SOLIHULL
30 Mill Lane 0845 458 7275
Unit SU37
Touchwood Shopping
Centre 0845 458 7276
SOUTHAMPTON
19 East Street 0845 458 7277
89 Commercial Road 0845 458 7278
Hedge End Retail Park
Charles Watts Way 0845 458 7279
SOUTHEND ON SEA
119 High Street 0845 458 7280
SOUTHPORT
443/445 Lord Street 0845 458 7281
STAFFORD
35a Gaolgate Street 0845 458 7282
STAINES
111b High Street 0845 458 7283
STEVENAGE
13 Park Place 0845 458 7284
STIRLING
30 Murray place 0845 458 7285
ST ALBANS
4 The Maltings 0845 458 7286
STOCKPORT
15 Warren Street 0845 458 7287
76/78 Princes Street 0845 458 7288
STOURBRIDGE
30 Rye Market Shopping
Centre 0845 458 7289
STRATFORD-UPON-AVON
30 Bridge Street 0845 458 7290
SUNDERLAND
57A Fawcett Street 0845 458 7291
SUTTON COLDFIELD
Grace Church Shopping
Centre, The Parade 0845 458 7292
SUTTON
27 High Street 0845 458 7293
SWANSEA
6 Belle Vue Way 0845 458 7294
SWINDON
26 Bridge Street 0845 458 7295
TAMWORTH
39b Ankerside Shopping
Centre, George Street 0845 458 7298
TAUNTON
1 St James Street 0845 458 7299
TELFORD
Unit 60,
Southwater Arcade
Telford Centre 0845 458 7301
TONBRIDGE
8 Pavillion Shopping Ctr* 0845 458 7305
TORQUAY
97 Union Street 0845 458 7302
TRAFFORD CENTRE
Unit L1C 0845 458 7213
TRURO
11 St. Nicholas Street 0845 458 7303
TUNBRIDGE WELLS
2 Camden Road 0845 458 7304
UXBRIDGE
Unit 201
The High Street 0845 458 7307
WAKEFIELD
12 Marygate
Westgate 0845 458 7309
WALSALL
1 Old Square 0845 458 7310
WARRINGTON
106a Golden Square 0845 458 7311
WATFORD
2 Market Street 0845 458 7312
Unit 162a
The Harlequin 0845 458 7313
WEST BROMWICH
194 High Street 0845 458 7314
WESTON SUPER MARE
46 High Street 0845 458 7315
WEYMOUTH
36 St Mary Street 0845 458 7316
WIGAN
Unit 29, 2 Hope Street 0845 458 7317
WINDSOR
24 Peascod Street 0845 458 7318
WOKING
18 Commercial Way 0845 458 7319
WOLVERHAMPTON
10-11 Queen Street 0845 458 7320
48 Mander Square
Mander Centre 0845 458 7321
4 Central Arcade
Mander Centre 0845 458 7322
WORCESTER
30 The Cross 0845 458 7323
Marmion House
High Street 0845 458 7324
WORTHING
6-8 Warwick Street 0845 458 7325
WREXHAM
Unit 6B Island Green
Shopping Centre 0845 458 7326
YEOVIL
57 Middle Street 0845 458 7329
YORK
2 The Piccadilly 0845 458 7330
Unit 1 Julia Ave,
Monks Cross Retail Park,
Huntington 0845 458 7331
29/30 Parliament Street 0845 458 7332
This store list represents the Jessops store network
planned for Christmas 2005
* Indicates stores to be opened after 
30 September 2005 58
Jessops plc Annual report and financial statements 2005 Jessops plc
Notice of 
Annual General Meeting
NOTICE is hereby given that the ANNUAL GENERAL MEETING of Jessops plc
will be held at the offices of ABN AMRO, 250 Bishopsgate, London, EC2M
4AA on 27 January 2006 at 11.00 am to transact the following business:
Ordinary Business
1. To receive and adopt the financial statements for the year ended 30
September 2005, together with the Reports of the Directors and of 
the Auditors thereon.
2. To re-appoint KPMG Audit plc as auditors to the Company, to hold
office until the conclusion of the next general meeting at which
accounts are laid before the Company, and to authorise the Directors 
to determine their remuneration.
3. To re-elect John Nigel Crabtree, who retires by rotation, in accordance
with Article 115 of the Company’s Articles of Association.
4. To re-appoint Robin Whitbread as a Director.
5. To re-appoint Chris Langley as a Director.
6. To approve the Directors’ Remuneration Report for the year ended 
30 September 2005.
7. To declare a final dividend for the year ended 30 September 2005 of 
1.4 pence per share, to be paid on 27 January 2006 to members whose
names appear on the register of members at the close of business on 
23 December 2005.
To transact any other ordinary business of the Company.
Special Business
As special business, to consider and if thought fit pass the following
resolutions which will be proposed as to resolution 8 as an ordinary resolution
and as to resolutions 9 and 10 as special resolutions:
8. THAT, subject to and in accordance with Article 16 of the Articles of
Association of the Company, the Directors be generally and
unconditionally authorised in accordance with section 80 of the
Companies Act 1985 (in substitution for any existing authority to allot
relevant securities) to exercise all the powers of the Company to allot
relevant securities (within the meaning of section 80 of the Companies
Act 1985) upto a maximum nominal amount of £ 856,979 (being
approximately one third of the current issued share capital) provided
that such authority shall expire at the conclusion of the next annual
general meeting, but so that the Company may before such expiry make
an offer or agreement which would or might require relevant securities
to be allotted after such expiry, and the Directors may allot relevant
securities in pursuance of such offer or agreement as if the authority
conferred by this resolution had not expired.
9. THAT, subject to the passing of resolution 8 as set out in the notice of
this meeting, and in accordance with Article 17 of the Articles of
Association of the Company, the Directors be empowered pursuant to
section 95 of the Companies Act 1985 to allot equity securities (as
defined in section 94 of the Companies Act 1985) for cash pursuant to
the general authority conferred by resolution 8 as set out in the notice
of this meeting and sell relevant shares (as defined in section 94 of the
Companies Act 1985) held by the Company as treasury shares (as
defined in section 162A of the Companies Act 1985) for cash, as if
section 89(1) of the Companies Act did not apply to such allotment or
sale, provided that this power shall be limited to allotments of equity
securities and the sale of treasury shares:
(i) in connection with or pursuant to an offer by way of rights, open
offer or other pre-emptive offer to the holder of shares in the
Company And other persons entitled to participate therein in
proportion (as nearly as practicable) to their respective holdings,
subject to such exclusions or other arrangements as the Directors may
consider necessary or expedient to deal with fractional entitlements
or legal or practical problems under the laws of any territory or the
regulations or requirements of any regulatory authority or any stock
exchange in any territory; and
(ii) otherwise than pursuant to sub-paragraph (i) above, up to an aggregate
nominal amount of £ 128,546.
and such power shall expire on the conclusion of the next Annual General
Meeting of the Company but so that the Company may before such expiry
make an offer or agreement which would or might require equity securities to
be allotted or treasury shares to be sold after such an expiry, and the Directors
may allot equity securities or sell treasury shares in pursuance of such offer or
agreement as if the power conferred by this resolution had not expired.
10.THAT the Company be generally and unconditionally authorised pursuant
to Article 9 of the Articles of Association of the Company and pursuant 
to section 166 of the Companies Act 1985, to make market purchases 
(as defined in section 163 of the Companies Act 1985) of up to an
aggregate nominal value of £ 128,546 in the capital of the Company
(being approximately 5 per cent of the current issued ordinary share
capital of the Company) on such terms and in such manner as the
Directors of the Company may from time to time determine, provided
that:
(a) The amount paid for each share (exclusive of expenses) shall not be
more than five per cent above the average of the middle market
quotation for Ordinary Shares as derived from the Daily Official List 
of the London Stock Exchange plc for the five business days before
the date on which the contract for the purchase is made, and in any
event not less than 2.5p per share; and
(b) The authority herein contained shall expire at the conclusion of the
next Annual General Meeting of the Company provided that the
Company may, before such expiry, make a contract to purchase its
own shares which would or might be executed wholly or partly after
such expiry, and the Company may make a purchase of its own shares
in pursuance of such contract as if the authority hereby conferred
hereby had not expired.
Dated: 16 December 2005 By Order of the Board
Registered Office: Nick Molyneux
Jessops House Secretary
98 Scudamore Road
Leicester
LE3 1TZ
Notes:
1. Any member entitled to attend and vote at the Annual General Meeting is entitled to
appoint one or more proxies (who need not be a member of the Company) to attend and, on
a poll, to vote instead of the member. Completion and return of a form of proxy will not
preclude a member from attending and voting at the meeting in person, should he
subsequently decide to do so.
2. In order to be valid, any form of proxy and power of attorney or other authority under which
it is signed, or notarially certified or office copy of such power or authority, must reach the
Company’s Registrars, Lloyds TSB Registrars, The Causeway, Worthing, West Sussex, BN99 6DA,
not less that 48 hours before the time of the meeting or of any adjournment of the meeting.
3. As permitted by Regulation 41 of the Uncertificated Securities Regulations 2001,
shareholders who hold shares in uncertificated form must be entered on the Company’s share
register at 11.00am on 25 January 2006 in order to be entitled to attend and vote at the
Annual General Meeting. Such shareholders may only cast votes in respect of shares held at
such time. Changes to entries on the relevant register after that time shall be disregarded in
determining the rights of any person to attend or vote at the meeting.
4. Copies of the service contracts of each of the Directors, and the register of Directors’
interests in shares of the Company kept pursuant to section 325 of the Companies Act 1985
will be available for inspection at the registered office of the Company during usual business
hours on any weekday (Saturdays and public holidays excluded) from the date of this notice
until the date of the Annual General Meeting from at least 15 minutes prior to and until the
conclusion of the Annual General Meeting.
5. Biographical details of each Director who is being proposed for re-appointment or re-election
by shareholders, are set out on page 2 of the Annual Report of the Company for the year
ended 30 September 2005. 59
Annual report and financial statements 2005 Jessops plc
Annual General Meeting
form of proxy
I/We
(Please insert full name(s) and address(es) in block letters)
of
being (a) member/members of the above-named Company hereby appoint the Chairman of the Meeting, or (see Note 1 below) 
of
as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held on 27 January 2006 and at any
adjournment thereof, and to vote as indicated below.
Please indicate how you wish your proxy to vote by inserting “X” in the box below. If no indication is given, and on any other resolutions proposed at the
meeting, your proxy will vote or abstain from voting as he/she thinks fit.
NAME: (Block capitals)
ADDRESS:
SIGNATURE(S):
or COMMON SEAL: Date:
Notes
1. Any member entitled to attend and vote at the Annual General Meeting is entitled to appoint one or more proxies (who need not be a member of the Company) of his own choice to attend
and, on a poll, to vote in his/her place. If a member wishes to appoint a proxy other than the Chairman, delete the words “the Chairman of the Meeting or,” initial the alteration and insert the
name of the person you wish to appoint as your proxy.
2. All members are entitled to attend and vote at the meeting, whether or not they have returned a form of proxy.
3. If a member is a corporation, this form of proxy must be executed under its common seal or by the signature of an officer or attorney duly authorised in writing. 
A copy of the authorisation of such officer or attorney must be lodged with the form of proxy.
4. In the case of joint holders, the signature of any one holder will be sufficient, but the names of all joint holders should be stated, and the vote of the senior holder who tenders a vote will be
accepted to the exclusion of the vote(s) of other joint holder(s), seniority being determined by the order in which the names stand in the register of members of the Company.
5. In order to be valid, this form of proxy, duly executed together with any power of attorney or other authority under which it is signed, or a notarially certified or office copy of such power or
authority, must be lodged at the Company’s Registrars not less than 48 hours before the time of the meeting or any adjournment of the meeting.
6. Any alterations made to this form of proxy should be initialled.
RESOLUTIONS
Ordinary Business FOR AGAINST
1 T o receive and adopt the financial statements for the year ended 30 September 2005.
2 T o re-appoint KPMG Audit plc as auditors and to authorise the Directors to determine their remuneration.
3 T o re-elect John Nigel Crabtree, who retires by rotation.
4 T o re-appoint Robin Whitbread as a Director.
5 T o re-appoint Chris Langley as a Director.
6 T o approve the Directors’ Remuneration Report for the year ended 30 September 2005.
7 T o declare a final dividend for the year ended 30 September 2005.
Special Business
8 T o authorise the Directors to allot relevant securities pursuant to section 80 
of the Companies Act 1985
9 T o authorise the Directors to allot equity securities pursuant to section 95 
of the Companies Act 1985
10 T o approve the purchase of shares pursuant to section 166 of the Companies Act 1985 60
Annual report and financial statements 2005 Jessops plc
First Fold
Second Fold
Third Fold
LLOYDS TSB REGISTRARS
THE CAUSEWAY
WORTHING
WEST SUSSEX
BN99 6DA
Tuck inside facing flap
AFFIX
STAMP
HERE Advisers & registered office
Auditors
KPMG Audit Plc
1 Waterloo Way
Leicester
LE1  6LP
Legal advisers
Eversheds LLP
115 Colmore Row
Birmingham
B3  3AL
Registrars
Lloyds TSB Registrars
The Causeway
Worthing
West Sussex
BN99  6DA
Principal bankers
HSBC Bank plc
31 Granby Street
Leicester
LE1  6EP
Secretary and registered office
Nick Molyneux
Jessop House
Scudamore Road
Leicester
LE3 1TZ
2006 reporting calendar
Analysis of shareholding
Christmas Trading Update mid-January 2006
Annual General Meeting 27 January 2006
Interim Results mid-May 2006
Pre-close Trading Update end of September 2006
Preliminary Results end of November 2006
At 30 September 2005, Jessops plc had 724 ordinary shareholdings of 2.5p ordinary shares. 
The following tables analyse these shareholdings by number of shares and holder type:
(i) Shareholdings by number of sharest 
Number Total shares 
Number of shares of holdings % held %
1 - 500 85 11.74 24,750 0.02
501 - 1,000 137 18.92 115,419 0.11
1,001 - 5,000 238 32.87 628,142 0.61
5,001 - 10,000 60 8.29 478,629 0.47
10,001 - 100,000 108 14.92 3,531,845 3.43
100,001 - 500,000 56 7.73 14,175,323 13.78
500,001 - 1,000,000 17 2.35 11,743,276 11.42
Over 1,000,000 23 3.18 72,140,139 70.15
724 100.00 102,837,523 100.00
(ii) Shareholdings by type of shareholder
Number Number 
Holder of holdings % of shares %
Nominee Company 312 43.09 90,153,490 87.67
Male 263 36.32 5,400,609 5.25
Female 81 11.19 771,407 0.75
Joint Account Not all Corporate Bodies 40 5.52 75,514 0.07
Other Limited Company 18 2.49 883,344 0.86
Other Corporate Body 4 0.55 3,533,586 3.44
Insurance Company 2 0.28 410,600 0.40
Bank 2 0.28 1,558,972 1.52
Pension Fund 1 0.14 1 0.00
Public Limited Companies 1 0.14 50,000 0.05
724 100.00 102,837,523 100.00 www.jessops.com