INTELEK plc
Annual Report
and Accounts
for the year ended 31 March 2008 Intelek designs and manufactures
electronic systems for satellite
and microwave communications
and is a specialist manufacturer
for the aerospace market.
Intelek
Report and Accounts 2008
www.intelek.plc.uk
Stock exchange code: ITK
Welcome to Intelek plc
Group Highlights 1
Group Overview 2
Chairman’s Statement 4
Chief Executive’s Review 6
Financial Review 18
Directors and Senior Executives 20
Directors’ Report 21
Statement of Directors’ Responsibilities 25
Corporate Governance Report 26
Remuneration Report 29
Auditors’ Report (Group) 32
Consolidated Income Statement 33
Consolidated Statement of Recognised
Income and Expense 33
Consolidated Balance Sheet 34
Consolidated Cash Flow Statement 35
Notes to the Financial Statements 36
Five Year Summary 57
Auditors’ Report (Company) 58
Company Balance Sheet 59
Notice of Meeting 62
Glossary 65
Group Company Addresses and Advisers IBC
Introduction to the markets
and operations of the Group
Strategy and prospects
Divisional analysis;
achievements and aims
Glossary of technical terms www.intelek.plc.uk 1
Group
Highlights
 Sales of £36.0 million (2007: £36.8 million)
 Underlying profit before tax up 41% to £3.3 million (2007: £2.3 million)
 Profit before tax after exceptionals £3.3 million (2007: £5.6 million)
 Underlying EPS up 36% to 2.78p (2007: 2.05p)
 Full year dividend increased 15% to 0.45p (2007: 0.39p)
 Net debt reduced 25% to £3.9 million Market:
The global Satellite Communications market is estimated at over £50
billion, growing at about 8% a year. We operate in the ground
equipment portion of this market. Including products under
development, our addressable market is estimated at just under
£500 million.
Target sectors:
 Security and defence
 Oil, gas and minerals
exploration
 HD television
 Countries without 
fixed line infrastructure
 Internet traffic 
— video, voice, etc.
Presence:
Design centres in the UK and in the USA, with a headcount of 103.
Global sales network, centred in the USA, with offices in the UK
and Asia.
Products:
Data transmitted by satellite has to be picked up at ground stations,
processed through modems and boosted in power by amplifiers to
make the 20,000 mile trip to the satellite, before being returned
elsewhere to earth, where the data is unscrambled through modems
and distributed. Paradise Datacom has designed a leading range of
modem and amplifier related equipment, all using solid state,
digital technology.
Major customers:
 UK, US and other governments
 Telcom majors
 Oil & gas operators
 Satellite news gathering agencies
Satellite communications
Paradise Datacom
Group Overview
2
Intelek 
Report and Accounts 2008
Group
Overview
Sales £15.3 million
Operating Profit £3.2 million
Geographical 
Turnover: £36 million
UK £17 million
USA £6 million
Europe £6 million
Rest of World £7 million
“Intelek designs and manufactures products for markets with exciting long-term
growth potential. We have an established presence in satellite communications,
mobile telephony infrastructure, defence, security and aerospace.” Market:
Microwave circuits and components have applications in most
electronic devices and the global market is immense. Labtech
targets the higher frequency and higher complexity products.
Our estimated addressable market is £250 million.
Target sectors:
 Defence
 Radar
 Security (airport screening etc.)
 Mobile telecom
infrastructure
 Space and satcom
Presence:
PCB processing plant in mid-Wales and a component design facility
in Milton Keynes, with a headcount of 105. Global sales distribution
network, headquartered in the UK.
Products:
 Build-to-print Microwave PCBs
The thermal and performance characteristics needed for
microwaves require skilful use of metals and chemistry
 Assembly and test of microwave products
The technical skills at the two sites combine to provide leading
edge product support
 Components for defence applications
Almost 20 years’ experience in design of high-end broadband
microwave components for defence
Major customers:
 Defence OEMs
 Mobile telecom OEMs
Market:
It is estimated that aircraft worth $1,000 billion will be required in
the next 10 years. CML has over 60 years’ experience supplying
aerospace components, principally into the commercial sector.
Recently, CML has gained acceptance into a major defence
programme that will extend the addressable market and hedge
against cyclical market changes.
Target sectors:
 Commercial jets
 Business and regional jets
 Helicopters
 Military aircraft
Presence:
Located in Birkenhead with headcount of 186. 
Main sales are within UK.
Products:
Build-to-print service providing:
 Precision machined aluminium and titanium parts for wings,
landing gear and other aircraft structure
 Composite material parts for ducting, access doors, etc.
 Sheet detail, providing trims and other metal aircraft features
Major customers:
 Airbus, particularly the A320 programme
 GKN
 Hawker Beechcraft
 BAe Systems
Microwave components 
and manufacturing services
Aerostructures
www.intelek.plc.uk 3
Sales by Division:
Satellite Communications
Paradise Datacom
42%
Microwave
components 
and manufacturing
services
Labtech Microwave
22%
Aerostructures
CML
36%
Labtech Microwave
Sales £7.9 million
Operating Profit £0.2 million
CML
Sales £12.9 million
Operating Profit £1.8 million £5.1 million). Sales for the financial year
reduced by £0.9 million largely due to
the effect of the weakening dollar on the
conversion of Paradise Datacom's US
dollar sales. Despite taking account of
some more conservative views on life
expectancy, the pension scheme deficit
reduced by £0.1 million to £5.2 million.
This was not helped by having to fund
the Government’s Pension Protection 
Fund which this year cost the Group
close to £0.1 million. 
Paradise Datacom, our satellite amplifier
and modem business, continued to
improve profitability, albeit on lower
sales. Even after incorporating the
£0.3 million negative effect of the
weaker dollar on profit translation,
operating profit was up £0.2 million
on the previous financial year at
£3.2 million, representing a healthy
return on sales of 21%.
Labtech Microwave, our microwave
components and manufacturing
services business, reshaped its cost
base at the beginning of the financial
year and, with the benefit of some
encouraging wins in the phased array
radar market, turned a £0.5 million loss
in the previous year into an operating
profit of £0.2 million in 2007/08. It is
encouraging that the new business
model at Labtech Microwave is meeting
with success in winning projects which
require the expertise and capability of
both the Presteigne and Milton Keynes
sites, a factor which gives Labtech
Microwave a competitive edge over
other suppliers.
CML, our aerostructures company,
continued to go from strength to
strength with operating profit in the year
to 31 March 2008 a further 12% higher
than the previous year. CML's main
programmes are robust and relate to the
supply of structural parts for the Airbus
A320, Hawker Beechcraft 800-series
corporate jet and the C27 military
transporter. CML continued to develop
their Composites business and, in
particular, gained approval and the first
production order to supply parts for the
Joint Strike Fighter (JSF) programme.
Dividend
Following the improved profitability of the
Group, the Board is recommending an
increased final dividend of 0.30p (2007:
0.26p) per ordinary share, increasing the
total dividend by 15.4% to 0.45p (2007:
0.39p). If approved at the Annual General
Meeting on 12 September 2008, this final
dividend will be paid on 24 September
2008 to shareholders on the register at
the close of business on 29 August 2008.
Introduction
I am very pleased to report continued
significant improvement in the
performance of the Group for the year to
31 March 2008. Underlying profit before
tax increased by 41% on the back of a
30% rise in the previous financial year
although the Income Statement for the
prior year to 31 March 2007 did include
exceptional net gains of £3.3 million.
Earnings per share from the underlying
profit of the Group improved by 36% to
2.78p (basic) and net debt was reduced
by 25% to £3.9 million.
All of our businesses performed well
and contributed to this increase in profit.
Paradise Datacom’s margins continued
to benefit from improved product design
and CML capitalised on higher volumes
and an ongoing commitment to lean
manufacture. However, it was Labtech
Microwave, following a review of the
business, which produced the most
significant result, turning a £0.5 million
trading loss in 2006/07 into a profit
approaching £0.2 million.
Results
Overall margins continued to improve,
with gross margins increasing by 2% to
30.9% of sales. Net borrowings at the
year-end reduced to £3.9 million (2007:
Chairman’s Statement
4
Intelek 
Report and Accounts 2008
Chairman’s
Statement 
David Bramwell
“All of our businesses performed well. I am confident
that we will continue to make progress, despite the
current challenging economic conditions.” Strategy
Our strategy is to continue to focus on
the development of our businesses in
the communications industry and, in
particular, the satellite segment of that
industry. We intend to develop
shareholder value by building an
integrated group with a significant share
of niche global communications markets
and the further development of our
profitable and growing aerostructures
business. We intend to grow organically
within our chosen markets by sound
investment in product development,
capital equipment and increased
geographic coverage. We will continue
to encourage the professional
development of our staff, enhanced,
where necessary, by the recruitment of
key additional skills. To supplement our
organic growth, we are actively seeking
suitable acquisitions within our core
areas of activity.
People
Once again, on behalf of the Board, I
would like to record my sincere thanks
to all of our staff for their dedication and
significant contribution during the year.
Their skill, commitment and enthusiasm
are very much key to the ongoing
success of the Group.
Outlook
Paradise Datacom continues to extend
its technology-leading market position
in solid state power amplifiers and has
recently launched a new lower data rate
version of the Evolution modem, which
will soon be joined by the new Vision 80
modem, extending our addressable
market into the digital broadcasting
sector. This and other investments in
new products will, together with the
development of our sales and marketing
network in China and the Far East,
enable us to attack the satellite
communications equipment market on a
much broader front.
Labtech Microwave has taken a major
stride forward in the past year and,
while there are still further improvements
to be made, progress to date has been
very encouraging. The defence market
has now replaced telecommunications
as Labtech Microwave's largest market
following the success of the previously
mentioned phased array radar projects
and of the detector log video amplifiers
which are used on a number of
platforms for detecting incoming
threats.
CML continues to offer a first-class
service to its major customers and will
benefit not only from participating in its
BAe Systems’ Commander radar, using active electronically scanned array (AESA) technology, a new market area for Labtech
www.intelek.plc.uk 5
current strong commercial aircraft
programmes but also in the recent
addition of the growing JSF project. We
intend to invest further in developing the
composites division in order to take
advantage of the trend towards more
fuel efficient and environmentally
friendly aircraft. 
Overall, I am encouraged by the steps
our businesses have taken to broaden
their product range, increase customer
numbers and develop a more global
footprint. I am confident that we will
continue to make progress, despite the
current challenging economic
conditions.
David M Bramwell
Chairman
9 June 2008 Chief Executive’s Review
CML continued the strong momentum
built up in previous years with another
excellent performance producing an
operating profit at £1.8 million (2007:
£1.6 million). With a book to bill ratio of
1.14:1, the 12 month order book at 
31 March 2008 is healthy, standing at
£10.5 million (2007: £8.6 million).
Intelek had a strong year in 2007/08
advancing on all fronts. Improved
margins at Paradise Datacom, a return
to profitability at Labtech Microwave
and a further increase in operational
efficiency at CML were the main factors
behind a 41% growth in underlying
profit before tax of £3.3 million. The
increase in earnings enabled the Group
to reduce net debt by £1.3 million to
£3.9 million. 
2007/08 was an excellent year for
Paradise Datacom with operating
profit up 7% at £3.2 million (2007:
£3.0 million). As the business operates in
the global satellite communications
market where the US dollar is the
prevailing currency, the operating profit
would have increased by a further 10% or
£0.3 million but for the weakening of the
US dollar against sterling. While dollar
sales of solid state power amplifiers
(SSPAs) increased, modem sales were
down on the previous year which had
benefited from some one off contracts
such as a $1.5 million project for China.
Labtech Microwave produced an
operating profit in 2007/08 of £0.2
million which was a turnaround of 
£0.7 million on the previous year’s
operating loss of £0.5 million. This
recovery was largely as a result of the
combination of an increased focus on
specialist microwave components and
circuit board packaged solutions and
the restructuring of the business which
was implemented at the beginning of
the financial year.
6
Intelek 
Report and Accounts 2008
Chief 
Executive’s 
Review 
Ian Brodie
“A strong year, advancing on all fronts. The initiatives
undertaken across the Group will underpin continued
growth.” www.intelek.plc.uk 7
Paradise Datacom's amplifiers in use on a satellite news gathering truck outside Capitol Building, Texas Satellite
communications 
Paradise Datacom
John Restivo President
Sales £15.3 million (2007: £16.9 million)
Operating Profit £3.2 million (2007: £3.0 million)
Paradise Datacom, with facilities in
Essex, UK and Pennsylvania, USA,
produces an extensive line of solid
state power amplifiers and modem
products used in the Satellite
Communications Industry. The
worldwide satellite communications
equipment market is estimated to be
currently $28 billion, of which our
current addressable sector is $400
million. Paradise Datacom is now
becoming recognised as a significant
player worldwide. 
Satellite communications equipment is
used extensively on a global basis to
provide internet, video, voice and data
services for corporations, governments
and the general population. Paradise
Datacom’s products are incorporated in
all facets of Satcoms from credit card
authorisation services to ruggedised
military applications. Solid State Power
Amplifiers (SSPAs) are used in the
majority of satellite ground station
terminals and Paradise Datacom
produces a wide range of products to
service this market segment. In
addition, the business produces
satellite modems which are designed to
provide high capacity connections from
multiple locations to centralised hub
stations. GSM back haul services,
internet trunking services, military
communications, HDTV broadcast,
disaster monitoring and weather
forecasting services are some of the
market segments in which Paradise
Datacom products are applied.
Satellite communications is unique
compared with cable, microwave and
other technologies in that global
coverage can be initiated almost
instantaneously by just installing small
but powerful earth station terminals.
These types of terminals which
incorporate Paradise Datacom
products are used where rapid
deployment of video, voice and data
services are essential in remote
locations with weak or no
communications infrastructure.
In an increasingly global economy,
satellite communications will continue
to grow to meet the
telecommunications needs of
corporations and governments.
Paradise Datacom’s Evolution modems
are designed to transmit duplex data
signals at rates up to 55 mega-bits per
second. These modems utilise the
latest firmware device technology and
are rich with features currently in
demand by government and
commercial markets worldwide. These
features include their proprietary
MultiMux enabling service providers to
combine multiple signal formats, which
provide unprecedented support of
hybrid networks and migration to
newer technologies such as IP.
Customers are able to minimise capital
expenditure with Paradise Datacom's
built-in network diagnostics features
that eliminate the need for expensive
test instruments. Further savings are
realised by utilising the Quad E-1
option which allows one modem to
function as four. 
Paradise Datacom’s RF product range
is one of the most extensive available
in the industry. It consists of Solid
State Power Amplifiers (SSPAs) with
output power levels from 8 watts to
1,100 watts, Block Up Converter
modules (BUCs) and Low-Noise
Amplifiers (LNAs).
The new Vision 80 modem for high definition TV broadcast
Chief Executive’s Review continued
8
Intelek 
Report and Accounts 2008 Paradise Datacom ended 2007/08 with an
impressive financial performance on
slightly lower US dollar turnover. Year on
year turnover in sterling terms reduced by
9.8%, while trading profit and operational
cash flow improved by 7.4% and 17.4%
respectively. Trading profit benefited from
improved margins due to cost-reduced
product designs and tight control of
overheads. 
In US dollar terms, the amplifier business
remained robust with turnover improving
by 1.8% year on year. However, on a
similar basis, our modem sales reduced by
9.4% on the previous year which had
benefited from some one-off contracts. In
addition, the cost of space segment was
substantially increased by the various
satellite operators, slowing the
procurement of satellite modems while
technology trade-offs were investigated by
potential customers.
During the year under review, Paradise
Datacom continued the implementation of
several key initiatives designed to increase
its market share. On the sales and
marketing front, key sales personnel were
recruited in the USA and plans to establish
permanent facilities in Asia were
advanced, leading to the opening of a
Bangkok office in April 2008. The business
will continue to focus sales and
promotional efforts on emerging markets
such as China, India and Russia. 
Paradise Datacom continues to invest in
research and development with
expenditure in 2007/08 at 11.7% of sales.
As a consequence of one of these
programmes, Paradise Datacom has
entered the video broadcast market with
the development of the Vision 80 modem
designed around the global digital video
broadcasting transmission standard (DVB
S-2). This development is an overlay to the
existing Evolution modem platform. The
Vision 80 offers features and performance
far beyond any competing product in its
price range. It is anticipated that the Vision
80, which is targeted at the emerging High
Definition TV (HDTV) market, will
contribute to sales in the first half of the
current financial year. In parallel with the
new Vision 80 modem, a military version of
the Evolution modem has been developed
to enable participation in US government
programmes that require product
compliant to military specification.
Increasing market demand for high-power
SSPA system architectures based on
modularity and switch-less redundancy
drove the launch of our most ambitious RF
product development to date. This
product, branded PowerMax, incorporates
cutting-edge technologies to deliver the
highest levels of RF power available in the
industry. PowerMax is scheduled for
release in the first half of the 2008/09
financial year. In addition to the PowerMax
product, Paradise Datacom has started
delivering its much-anticipated vBUC
range of medium power amplifiers. Both
these new RF products are developed for
substantial sectors of the market not
previously addressed by Paradise
Datacom. 
Modem racks providing 
communication for the military
Paradise Datacom's modems in use in the Himalayas
www.intelek.plc.uk 9
2006 2007 2008
170
160
150
140
130
120
110
100
Sales/Head (£000)
2006 2007 2008
2006 2007 2008
110
100
90
80
70
60
50
40
Return on Capital Employed
Stock turns
5
4
3
2
1
0
Key Performance Indicators
Three key ratios for each of the operating
companies have been selected to highlight
performance movement in the last three years with
brief explanatory comments where necessary.
(a) The sales per head ratio declined slightly due
to the weaker US dollar and volume changes 
to sales, as noted.
(b) Stock turns and ROCE improved through
production efficiencies and higher average
margins, with Paradise Datacom generating
near 100% return on assets invested.
% Growth in the satellite communications
market is partly predicated upon the
availability and cost of space segment
(transponder bandwidth) to support new
services and expansion of existing
networks. Transponder prices have
increased as a result of consolidation
among the large satellite operators and
launch failures that prevented a number of
new commercial satellites from entering
service. As space segment is the highest
single operational expense for any satellite
based service provider, de mand for
spectrum-saving technologies is at an all-
time high. In response, Paradise Datacom
is working on an enhancement, scheduled
for release in mid-2009, which will increase
the spectral efficiency of an Evolution
modem by up to 50%.
This decade so far has seen
unprecedented spending by Western
governments to provide state-of-the-art
communications capabilities to their
military forces in the field, notably in
Afghanistan and Iraq. One key award in
2007/08 was for the supply of Paradise
Datacom’s Evolution modems as part of a
communications project in Afghanistan.
We anticipate continued spending in these
areas, with increasing emphasis on the
refurbishment of ageing, legacy networks.
A potentially large US government
programme involving the supply of
medium-power SSPAs was awarded to
Paradise Datacom in 2005 but was placed
on hold in 2006. This programme was
reinstated in 2007, contributing $680,000
of sales in the financial year to 31 March
2008, and expanded from the original C
and Ku-band fixed earth station
requirement to include multi-band flyaway
terminals. Also, following a period of
rigorous testing of our SSPA products, a
branch of the US military began the
purchase of Paradise amplifiers replacing
old Travelling Wave Tube Amplifiers
(TWTAs). Replacement of TWTAs with
solid state power amplifiers is a growing
trend as they are more compact and
robust.
The successful deployment of the first of a
series of Gapfiller satellites by the US
government guarantees significant
demand for X and Ka-band RF products.
Extensive work by the RF engineering
team at Paradise Datacom has resulted in
feature and performance refinements to
the X-band product line and the initial
launch of a line of Ka-band products.
Paradise Datacom has also begun
supplying compact outdoor SSPAs to a
US maritime systems integrator for
shipboard IP terminals to support the
cruise line industry. The first dozen units
have already been shipped as part of a
total requirement of 100 amplifiers to be
delivered by the end of September 2008.
In addition, a major telecoms service
provider in Alaska has selected Paradise
Datacom to supply SSPAs for their rural
telephone network expansion. 
Environmental protection is and will
continue to be a focus area for Paradise
Datacom. As an example, Paradise
Datacom was one of the first companies
within the industry to convert to lead-free
components. The business is conscious of
the need to ensure safe working
conditions for all staff and to minimise its
impact on the environment. 
Paradise Datacom continues to
aggressively look forward and target key
markets and customers by developing
differentiating products and by expanding
its international reach. Even in the midst of
uncertain global economic conditions we
continue to push forward and are
confident of market share gains.
Satellite
communications 
Paradise Datacom
The new PowerMax amplifier: this will provide the highest RF power levels in the industry
Chief Executive’s Review continued
10
Intelek 
Report and Accounts 2008 Labtech Microwave specialises in the
manufacture of advanced microwave
electronic printed circuit boards and
the design, manufacture, assembly
and test of MMIC (monolithic
microwave integrated circuits)
packages and microwave components.
Microwave circuits and components
are manufactured in prototype and
medium to high volumes for major
telecommunication, military and space
system customers worldwide.
Labtech Microwave’s extensively
equipped printed circuit boards
processing plant is based in a
purpose-built facility in Presteigne,
Wales and its component design and
build facility is in Milton Keynes.
Labtech Microwave’s printed circuit
board technology is focused on the
processing of high performance PTFE
(Teflon) microwave substrates with
plated through holes and high
specification wire bondable plating
finishes. Circuit layers can be bonded
together in a multilayer construction
and include precision machined metal
backing for high frequency
applications such as broadband digital
radio links, microwave power
amplifiers and phased array radar
antennas. The printed circuit board
technology covers applications from
low microwave frequencies (~1GHz) to
millimetre-wave frequencies (up to
94GHz) where circuit feature
tolerances require the most advanced
processing techniques including laser
profiling.
Labtech Microwave exploits its 19
years’ experience in design and
manufacture of a range of high-end
broadband microwave components
mainly for the European defence
market. Using high accuracy thin film
ceramic circuit manufacturing
capability, Labtech Microwave
produces multioctave microwave
amplifiers, switches and detector log
video amplifiers (DLVAs). In the last 2
years or so Labtech Microwave,
utilising the latest microwave circuit
technology at Presteigne, has
embarked on a plan to develop a
broad range of components to address
key market sectors, with the DLVA
range being the first to be launched.
The combination of precision circuit
machining (including laser technology),
advanced automatic chemical
processing and component design,
assembly and test gives Labtech
Microwave a leading world-class
capability. By integrating these
capabilities Labtech Microwave is able
to address successfully the emerging
markets of MMIC packaging and AESA
(active electronically scanned array)
radar where the ability to manufacture
and test these advanced microwave
circuits is key.
www.intelek.plc.uk 11
Microwave components 
and manufacturing
services
Labtech Microwave
Brian Mazonas Managing Director
Sales £7.9 million (2007: £8.3 million)
Operating Profit £0.2 million (2007: Loss £(0.5) million)
Selex’s Seaspray AESA radar
(©Selex Galileo) 2006 2007 2008
90
85
80
75
70
65
60
Sales/Head (£000)
2006 2007 2008
8.5
8.0
7.5
7.0
6.5
6.0
5.5
5.0
20
15
10
5
0
–5
–10
–15
ROCE
Stock turns per annum
%
2006 2007 2008
Key Performance Indicators
(a) The steps taken in the early part of the year 
to reduce headcount brought sales per head
12% higher, notwithstanding the drop in
sales.
(b) Stock turns reduced due to a build-up of
work-in-progress at the year-end on a
number of programmes, and the longer lead
times required for higher specification
products.
(c) ROCE was modest, but represented a
significant improvement on last year.
Microwave components
and manufacturing
services
Labtech Microwave
Chief Executive’s Review continued
12
Intelek 
Report and Accounts 2007
Focusing Labtech Microwave on the
defence market and the specialist
higher margin areas of the
telecommunications market enabled a
substantial improvement in operating
profit compared with the previous
financial year. Although, as anticipated,
overall sales reduced by £0.4 million,
the margin improvement and cost
benefits from restructuring the printed
circuit board activity early in the year
enabled an operating profit
improvement of £0.7 million. As
expected, sales activity was subdued in
the first half of the financial year, but the
predicted break even result was
obtained. During the second half,
activity levels picked up and Labtech
Microwave returned to profit.
Important contract wins in the European
AESA (active electronically scanned
array) radar market increased the
activity levels of both sites progressively
through the year. AESA radars are
becoming the preferred alternative for
commercial and military use as a result
of AESA radar technology offering
significant weight and cost reductions
together with increases in capability
when compared with mechanically
steered radars. The total annual market
is estimated at £2 billion, and is
expected to grow at approximately 20%
p.a. Labtech Microwave’s addressable
portion of this market is estimated at
£80 million. The multilayer printed circuit
boards are manufactured at the
Presteigne site and then assembled and
tested at the Milton Keynes location.
This overall capability has proved to
have significant market appeal with
Labtech Microwave now becoming
involved in several key European AESA
programmes. 
Labtech Microwave has also been very
active in other areas of the defence
market. Following the receipt of a
significant order for various detector log
video amplifiers (DLVAs) from a major
European defence OEM at the end of last
year, the business has now demonstrated
an enhanced capability making it a
leading European supplier of high
specification DLVAs. These components
are used as part of an electronic
surveillance system to detect incoming
threats, requiring nano-second response
times to trigger defensive solutions.
Electronic military components designed
and manufactured by Labtech Microwave www.intelek.plc.uk 13
High precision, nickel-gold 
plated microwave circuit
Following a steep decline in Labtech
Microwave’s telecommunication market
activities in the previous year, 2007/08
proved to be more stable as the focus
was primarily on the higher margin
digital radio link circuits. Labtech
Microwave’s capabilities remain in
demand for the very high-end products
and the smaller radio link suppliers who
value the business’s more complete
service offering.
Labtech Microwave also continues to
develop and promote its monolithic
microwave integrated circuits (MMIC)
packaging and assembly capability. High
performance packages and circuits
utilising liquid crystal polymer substrates
are growing in demand as they perform
particularly well at the high millimetre-
wave frequencies (e.g. 60GHz and
94GHz) which are used for broadband
high capacity radio links and the rapidly
growing security detection market.
The business continues to pursue other
microwave markets as it moves away
from the commodity driven telecom
business. As already indicated, defence
is now a major market area for Labtech
Microwave. Other areas of activity
include satellite communications, space,
air traffic control radar and marine radar.
The growing high frequency Ka-Band
satcom market utilises Labtech
Microwave’s high precision circuit board
processing capability and this proved to
be consistently in demand throughout
the year. Labtech Microwave has also
used its comprehensive manufacturing
capabilities to produce high
performance microwave circuits
incorporating thermal heat sinks for the
high power solid state amplifier market
where Paradise Datacom is a key
customer.
During the year further investment was
made in high precision drilling and
profiling machines which are essential
for the new generations of products
being developed by Labtech
Microwave.
Going forward, Labtech Microwave
continues to develop its business model
to enable it to become an integrated
supplier of specialist microwave circuits,
assembled circuits and fully designed,
manufactured and tested microwave
components. Although the phasing of
current production programmes means
trading in the first half of the new
financial year will be subdued, it is
anticipated that activity will increase
during the second half of the year and
beyond as further defence production
programmes commence.
Labtech Microwave remains committed
to the highest levels of husbandry of the
local environment and care of
employees. The company takes
considerable care to minimise waste,
use valuable resources efficiently and
prevent damage to the environment.
Both sites at Labtech Microwave are
approved to the International
Environmental Standard ISO 14001. Chief Executive’s Review continued
14
Intelek 
Report and Accounts 2007
CML manufactures precision-
machined aluminium and titanium,
composite and sheet metal
components and assemblies for
aerostructures and aircraft systems. Its
customers include Airbus UK, BAe
Systems, GKN Aerospace, Hawker
Beechcraft, GE Aviation and Westland
Helicopters.
The group has four divisions located
on two sites in Birkenhead in the North
West of England.
The Precision Machining Division is
focused on 4 and 5-axis machining of
aluminium and hard metals. Principal
products, covering almost the full
range of Airbus commercial and
military aircraft, include interspar ribs
and ancillary components; landing
gear rib supports, sidestay fittings and
links; underwing access panels; engine
thrust fittings; and aft mounting
brackets. Components for military and
rotary wing aircraft are also supplied to
other customers.
The Composites Division specialises in
the manufacture and repair of glass
and carbon fibre components and
assemblies. Products include various
wing and fuselage fairings, covers, and
panels, nose and tail cone assemblies,
air conditioning ducts, flooring, etc.
The largest new build programme is
the Hawker 800-series business jet,
whilst spares and other new build
requirements are supplied for a variety
of civil, business and military aircraft
programmes.
The Fabrications Division’s two main
revenue streams are from the
manufacture of extruded fuselage and
wing stringers for the Hawker 800-
series build programme and from its
position as a key supplier of sheet
metal spare parts for the Airbus in-
service fleet. 
The Treatments Division provides a
comprehensive in-house surface
treatments capability not only to the
other three divisions but also to a
valuable external customer base.
Aerostructures
CML
Geoff Stewart Managing Director
Sales £12.9 million (2007: £11.7 million)
Operating Profit £1.8 million (2007: £1.6 million)
Gear-rib, part of the landing gear for the A320 www.intelek.plc.uk 15
CML performed well in 2007/08 with an
improvement in operating profit of 12%
over the previous financial year on an
increase in sales of 10%. Despite
pricing pressures from both customers
and suppliers, through a programme of
continuous improvement and tight
control of overheads, CML has
increased the return on sales to 13.8%
(2007: 13.5%) maintaining a very
respectable return on capital employed
of 43% (2007: 46%).
Build rates for our major programme
(Airbus A320) continued to increase with
the consequence that investment in
additional capacity for the Precision
Machining Division will be required in
the first half of the new financial year.
Turnover for the Fabrications Division
grew by a further 16% this year on the
back of strong demand for current
programmes and the additional
requirements for in-service spares which
accounted for 30% of Fabrications
sales. The Treatments Division
continues to provide excellent service in
support of the other three divisions
whilst increasing third party sales by
some 21%.
A strong performance was achieved in
the Composites Division with sales up
by 28% on the previous financial year.
Throughout the year, this division has
seen build rates increase from key
customers such as Airbus and Hawker
Beechcraft with demand forecasted to
continue at a high level. CML has a firm
base from which to develop further its
composites capacity and capability. To
this end, the management team has
been strengthened with the
appointment of a dedicated Composites
Development Manager with plans to
increase engineering capability in the
coming year. 
The C27-J Spartan, incorporating CML’s titanium firewall assembly
2006 2007 2008
75
70
65
60
Sales/Head (£000)
2006 2007 2008
11.0
10.0
9.0
8.0
7.0
6.0
50
40
30
20
ROCE
Order Book £m (12 months)
%
2006 2007 2008
Key Performance Indicators
(a) Production efficiencies enabled much of the
10% sales increase to come through to
improve sales/head ratio, up 5% on last year.
(b) The 22% increase on last year’s order book
demonstrates the strength of the aerospace
market, providing a strong underpinning for
next year.
(c) ROCE was excellent at 43%. The fall since last
year reflects Group policy to move further from
operating lease to finance lease for major
equipment, together with pressure from
customers for CML to hold higher levels of
buffer inventory. Chief Executive’s Review continued
16
Intelek 
Report and Accounts 2007
The A340, part of the Airbus single-aisle commercial jet range, CML’s major programme (©Airbus)
Aerostructures
CML
As part of the strategy going forward,
CML is looking to diversify further into
military programmes. This will create a
greater balance to complement the high
levels of sales to the commercial and
business jet sectors. CML has invested
in an upgrade of their Autoclave and
Clean Room facilities to meet the
exacting standards required by BAe
Systems for the supply of composite
components for the F35 Joint Strike
Fighter, the first orders for which have
now been received. 
In September 2007, CML achieved
accreditation to the ISO 14001
environmental standard and, with
support from the Carbon Trust, CML is
committed to reduce its carbon footprint
over the coming year through the
implementation of energy saving
projects. 
Looking forward, the company is
focusing on training and developing
staff to support continuous
improvement activities throughout the
business. In addition, CML will invest
selectively in equipment to increase
capacity and to support the aerospace
industry’s migration towards the
increased use of lightweight carbon
structures and titanium (hard metal).
These actions will stand the company in
good stead for the future. 
Notwithstanding the current economic
situation, build rates going forward are
showing strong growth, particularly for
CML’s largest customers such as
Airbus, Hawker Beechcraft and GKN.  www.intelek.plc.uk 17
The Board can take considerable
comfort and confidence for the future
from the encouraging progress and
achievements in the year under review.
However, we must undoubtedly be wary
of the current weakness in the US
commercial market and the knock-on
effect of the problems of the financial
sector.
 Paradise Datacom is undoubtedly
becoming a dynamic and
innovative force in the ground
equipment market for satellite
communications. Our technical
capability is now recognised not
only by our major competitors but
also by the global integrators and
their ultimate customers,
principally major government
departments. The release of our
new products significantly enlarges
our addressable markets, and our
investment in increased sales
resource, particularly in the West
Coast of America and in the Far
East, add a further significant
dimension to our product and
service offering.
 Although Labtech Microwave
carried out a successful
restructuring at the beginning of
2007/08, it is more their success
with the AESA radar circuits and
the DLVA product groups which
will ensure a return to growth in the
future. However, a move from
telecommunications to the defence
sector necessarily exposes
Labtech to the arena of larger
contract awards, the timing of
which are, by their nature, difficult
to predict. 2007/08 was an
encouraging step forward for
Labtech Microwave on a journey
which will result in that company
emerging as a niche microwave
component supplier for the
defence, commercial radar, satcom
and security markets.
 CML’s core Airbus A320 and
Hawker 800-series corporate jet
programmes have strong
production schedules for the next
few years. In addition, CML has
recently won approval to supply
Outlook
composite parts for the JSF
programme and is an existing
supplier of parts into the Airbus
A330 airframe used on the military
tanker aircraft. Therefore, CML
should be able to look forward with
confidence to a continuing period
of sustained and steady growth.
While there are some concerns over
Western economies, the initiatives
undertaken across the Group — to
enhance our product range, expand our
offering on key governmental
programmes and increase our
geographic coverage — will continue to
stand us in good stead and help us to
underpin our continued growth.
Ian D Brodie
Chief Executive
9 June 2008
Outlook
The Joint Strike Fighter, a new opportunity for CML Composites (©Lockheed Martin) Financial Review
18
Intelek 
Report and Accounts 2008
Financial 
Review
Kevin Edwards
US$/£ rate had caused a profit change
on translation of about £50,000. Whilst
the Group does not hedge directly
against gains or losses on translation of
the result, it does maintain a large
portion of its bank debt in US dollars as
a partial hedge against the net assets
invested in Paradise Datacom LLC.
Finance costs
Interest costs (excluding pension
finance costs) increased to £0.5 million
(2007: £0.4 million) primarily due to the
higher level of debt required to fund the
pension project in 2006/07. Measured
against underlying operating profit,
interest cover rose to 8.5 times (2007:
7.8 times). Pension finance costs are the
net of the expected return on scheme
assets and interest on scheme
obligations. This is computed by the
scheme actuary and is somewhat
volatile. For the financial year to 
31 March 2008, the actuary has
computed that the net cost fell to £0.1
million, down 69% on 2007 (£0.2
million). The net cost for 2008/09 is
projected by the actuary to increase to
£0.3 million, primarily due to higher
discount rates and the lower level of
scheme assets.
Taxation
The effective tax rate on underlying
profit increased from 26% to 29%, with
the previous year benefiting to a greater
extent from prior year credits. Without
these credits, the effective rate for the
financial year to 31 March 2008 would
have been 31%. We expect the effective
tax rate in 2008/09 to be in the range of
30%–35%.
Earnings per share
Basic EPS was 2.78p and fully diluted
EPS was 2.77p. This is an increase of
36% over last year’s EPS on underlying
earnings. Comparison against last
year's basic/diluted EPS of 4.53p is of
little value as last year’s income
statement benefited from an exceptional
net gain of £3.3 million.
Pension
The Group’s defined benefit pension
scheme was valued at 31 March 2008
by the scheme actuary. The outcome
was a reduction in the deficit to £5.2
million (2007: £5.3 million). The deficit
would have been £1.0 million lower if we
had used the usual AA corporate bond
rate to discount the liabilities. However,
Results
Underlying operating profit for the
financial year to 31 March 2008
increased by 31% to £3.8 million on
sales down by 2% overall, with gross
margin increasing to 31% from 29%.
After reduced finance costs, underlying
profit before tax increased by 41% to
£3.3 million. The profit before tax for the
previous financial year in the Income
Statement included exceptional net
gains of £3.3 million.
Research and development costs
R&D investment at Paradise Datacom
was maintained at £1.8 million,
equivalent to 12% of its sales. In
addition, Labtech Microwave invested
£0.2 million at its microwave
components division.
Exchange rate
The Group derives a significant portion
of its sales and profits in US dollars. The
results of our US subsidiary, Paradise
Datacom LLC, are translated at average
exchange rates that have increased by
6% compared with the previous financial
year, from $1.90 to $2.01. The effect on
underlying profit has been a reduction of
£0.3 million. Each 1% change in the
“Underlying PBT increased by 41% and cash
generated by operations increased by 43%.” www.intelek.plc.uk 19
recognising the current volatility in the
corporate bond market, we elected to
take a cautious approach, picking a rate
(6.5%) mid-way between the rate for AA
(6.9%) and AAA (6.0%) corporate
bonds. Liabilities reduced to £19.1
million (2007: £20.7 million), mainly due
to the higher discount rate (2007:
5.45%). This was mostly offset by the
decline in scheme assets to £13.9
million (2007: £15.4 million), affected by
the general market downturn, with
investments being primarily in equities.
Following the action taken to reduce the
scheme deficit in 2006/07, the Company
agreed with the Trustees to reduce the
annual contribution from £1.4 million to
£0.8 million, with effect from 1 April
2007. In addition, the Group reimburses
the scheme to cover its expenses, in
particular the levy put on the scheme by
the Government’s Pension Protection
Fund, which is increasing every year
(£90,000 for 2007/08), with no benefit to
the Company.
Cash flow
Net debt reduced by 25% to £3.9 million,
after funding £0.4 million for the pension
transfer project and other exceptional
items. Before these items, cash
generated from operations increased
43% to £4.5 million, after £0.9 million of
contributions paid into the defined
benefit pension scheme. Capital
investments in the business, including
assets on finance lease, amounted to
£1.2 million. £0.6 million was applied to
new machining centres at CML, as we
increased capacity to meet rising
demand and replaced ageing equipment.
£0.15 million was invested at Labtech
Microwave, mainly in new precision
drilling equipment for higher specification
product. £0.4 million was invested at
Paradise Datacom, £0.2 million on R&D
projects and the rest on test equipment.
Shareholders’ equity
In addition to the net profit for the year
of £2.4 million, charges were recognised
directly in equity of £0.6 million for net
actuarial losses on the defined benefit
pension scheme and £0.4 million for
dividends paid in the year. The Chief
Executive exercised a tranche of share
options during the year, and the shares
for this were provided out of the ESOP
trust. These are recorded as “Own
Shares” in the financial statements,
deducted from equity. Consequently, a
disposal of shares is recorded,
producing a £0.1 million increase in
Equity. Equity closed £1.5 million higher
at £16.0 million.
Articles
The Companies Act (2006) has brought
in many changes, mostly with only
minor impact. To avoid piecemeal
modifications to the Company’s Articles,
we have had the Articles brought up to
date with the new legislation and best
practice, though there may need to be
further minor changes in future years as
and when each section of the Act is
implemented. The changes in the
Articles will be brought before
shareholders at the AGM. Notes
explaining the changes are included in
the Directors’ Report.
Kevin Edwards
Finance Director
9 June 2008
32%
22%
46%
22%
36%
42%
32%
22%
46%
22%
36%
42%
 2006
 2007
 2008
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
–0.5
–1.0
Operating profit by business segment (£000) Sales by business segment
 Satellite communications  Microwave circuits and components  Aerostructures
2007 Total 
£36.8 million
2008 Total 
£36.0 million
Satellite 
Communications
Microwave circuits
and components
Aerostructures Directors and Senior Executives
20
Intelek 
Report and Accounts 2008
1 David Bramwell
Non-Executive Chairman. Age 59.
Appointed to the Board in October 2004. Deputy Chairman of Rights and
Issues Investment Trust plc and Chairman of several venture capital backed
businesses. Previously Chief Executive of the Peterhouse Group plc and
Managing Director of two engineering companies. David has a First Class
Honours Degree in Engineering and a Doctorate in Business Management.
2 Donald Wilson
Senior Independent Non-Executive Director. Age 75.
Appointed to the Board in 1995. Previously Managing Director of Rank
Xerox (UK) Limited, and Chairman of Rank Xerox, Sweden, Norway,
Denmark and Ireland.
3 Ian Brodie 
Chief Executive. Age 56.
Appointed Chief Executive of the Group in 1999 after joining the Board as
Group Finance Director in 1992. Held senior operational finance appointments
within the GEC, Plessey and Chloride Groups. Ian is a member of the Institute
of Chartered Accountants of Scotland having trained at Binder Hamlyn and
obtained post-qualifying experience with Touche Ross & Co. London.
4 Kevin Edwards
Finance Director/Company Secretary. Age 51.
Appointed to the Board in May 2000. Previously Finance Director of Textron
Fastening Systems Limited, a subsidiary of Textron Inc., and Finance Director
of several subsidiaries within the GEC Group, having qualified as a Chartered
Accountant with Ernst and Young.
5 John Restivo
President of Paradise Datacom. Age 46.
Appointed April 2004, having joined in 2003 as Head of Business Development
and Worldwide Sales. Over 20 years of engineering and executive experience
in the satcoms industry, including Hughes, Radyne Comstream and, most
recently, Viasat, as an Executive VP & General Manager. John holds a BSc in
Electrical Engineering.
6 Brian Mazonas
Managing Director of Labtech. Age 53.
Appointed in 1997. Extensive design and engineering management experience
in Marconi and Plessey, primarily in microwave technology. In 1989, appointed
General Manager of Elettronica UK (associate of Marconi), which designed
and manufactured microwave components. This business was bought by
Intelek in 2005. Brian holds a First Class BSc in Electrical and Electronic
Engineering and a PhD in Pulsed Transferred Electron Oscillators.
7 Geoff Stewart
Managing Director of CML. Age 56.
Appointed in 1999. Joined CML as an apprentice in 1968, worked in most of
the operational divisions of the company and rose to Manufacturing Director
in 1995. Well-known and respected within the UK aerospace industry.
Directors and
Senior Executives
Board of Directors
Senior Executives 56
3 4
12
7  Directors’ Report
The Directors present their report and
the audited financial statements for the
year ended 31 March 2008.
Business review 
and principal activities
The principal activities of the Group are
the design and manufacture of
electronic systems for satellite and
microwave communications and
manufacture of precision parts for the
aerospace market. There have not been
any significant changes in the
Company’s principal activities in the
year under review. The Directors are not
aware at the date of this report of any
likely major changes in the Company’s
activities in the next year.
This Report should be read in
conjunction with the Chairman’s
Statement, the Chief Executive’s Review
and the Financial Review. In particular,
details of the Group’s trading during the
year and an indication of likely future
developments are contained in the Chief
Executive’s Review on pages 6 to 17.
Results and dividends
The results for the year are set out on
page 33. The profit on continuing
ordinary activities before taxation
amounts to £3,309,000 (2007:
£5,622,000). An interim dividend of 0.15p
(2007: 0.13p) per Ordinary Share was
paid on 23 January 2008. A final dividend
of 0.30p (2007: 0.26p) per share is
recommended for approval at the Annual
General Meeting on 12 September 2008.
It is proposed that this should be paid on
24 September 2008 to shareholders on
the register at the close of business on
29 August 2008.
Research and development activities
The Group continued to invest in new
product development, primarily in
satellite communications and
microwave components.
Key performance indicators
Key performance indicators are set out
and explained for each business
segment in the Chief Executive’s
Review.
Principal risks and 
uncertainties facing the Group
The Annual Report contains certain
forward-looking statements. These
statements are made by the Directors in
good faith, based on the information
available to them up to the time of
approval of this report. Actual results may
differ from those expressed in such
statements, depending on a variety of
factors. These factors include customer
acceptance of the Group’s products;
changes in customer requirements and in
levels of demand in the market;
restrictions to market access; competitive
pressure on pricing, delivery or
technology; global defence spending
levels; delays or additional cost in
product design and launch programmes;
fluctuations in manufacturing delivery
performance, yields and costs; the loss or
lack of key personnel; overall economic
conditions.
As part of the Group’s risk management
process, each business assesses the
likelihood and potential adverse impact of
these various risks and prepares action
programmes prioritised to mitigate the
overall impact. This is explained in more
detail in the Corporate Governance
Report on pages 26 to 28.
Financial instruments
The Group’s operations expose it to a
variety of financial risks including the
effects of changes in interest rates on
debt, foreign currency exchange rates,
credit risk and liquidity risk. 
The Group’s principal financial
instruments comprise cash and bank
deposits, bank loans and overdrafts and
obligations under finance leases
together with trade receivables and
trade payables that arise directly from
its operations.
The main risks arising from the
Company’s financial instruments can be
analysed as follows:
Price risk
The Group has no significant exposure
to securities price risk, except indirectly
through its responsibility for the Group
Defined Benefit Pension Scheme.
Foreign currency risk
The Group is exposed in its trading
operations to the risk of changes in
foreign currency exchange rates. The
main foreign currencies in which the
Group operates are the euro and the 
US dollar. The Group has not used
derivative instruments in its
management of this risk.
Credit risk
The Group’s principal financial assets
are bank balances, cash, and trade
receivables, which represent the
Group’s maximum exposure to credit
risk in relation to financial assets.
The Group’s credit risk is primarily
attributable to its trade receivables.
Credit risk is managed by monitoring the
aggregate amount and duration of
exposure to any one customer
depending upon their credit rating. The
amounts presented in the balance sheet
are net of allowances for doubtful debts,
estimated by the Group’s management
based on prior experience and their
assessment of the current economic
environment.
The Group has no significant
concentration of credit risk, with
exposure spread over a large number of
customers.
The credit risk on liquid funds is limited
because the counterparties are banks
with high credit ratings assigned by
international credit-rating agencies.
Liquidity risk 
The Group’s policy has been to ensure
continuity of funding through acquiring
an element of the Group’s fixed assets
under finance leases, and arranging
funding for operations via medium-term
loans and additional revolving credit
facilities to aid short-term flexibility.
www.intelek.plc.uk 21 Cash flow interest rate risk
Interest bearing assets comprise cash
and bank deposits, all of which earn
interest at a market rate. The interest rate
on bank borrowings is at market rate and
the Group’s policy is to keep the bank
borrowings within defined limits such that
the risk that could arise from a significant
change in interest rates would not have a
material impact on cash flows. The
Group’s policy is to maintain other
borrowings at fixed rates to fix the
amount of future interest cash flows. The
Directors monitor the overall level of
borrowings and interest costs to limit any
adverse effects on financial performance
of the Company.
Environment
The Group’s policy with regard to the
environment is to ensure that we
understand and effectively manage the
actual and potential environmental
impact of our activities. Our operations
are conducted such that we comply
with all legal requirements relating to the
environment in all areas where we carry
out our business. During the period
covered by this report the Group has
not incurred any significant fines or
penalties or been investigated for any
significant breach of environmental
regulations.
The principal business segments for
which environmental matters are
relevant in reviewing the Group are CML
and Labtech, and comments in this
respect are contained within the Chief
Executive’s Review on pages 13 and 16.
Capital structure
Details of the authorised and issued
share capital, together with details of
the movements in the Company’s
issued share capital during the year, are
shown in note 25. The Company has
one class of ordinary shares, which
carry no right to fixed income. Each
share carries the right to one vote at
general meetings of the Company.
There are no specific restrictions on the
size of a holding nor on the transfer of
shares, which are both governed by the
general provisions of the Articles of
Association and prevailing legislation.
The Directors are not aware of any
agreements between holders of the
Company’s shares that may result in
restrictions on the transfer of securities
or on voting rights.
Details of employee share schemes are
set out in note 23.
No person has any special rights over
the Company’s share capital and all
issued shares are fully paid.
With regard to the appointment and
replacement of Directors and the extent
of the powers of the Directors, the
Company is governed by its Articles of
Association, the Companies Acts and
related legislation. See also the
Corporate Governance Report on pages
26 to 28. The power of the Directors to
instigate the issue or buy-back of shares
by the Company is governed by the
Articles and the resolution of
shareholders. The Articles may be
amended by special resolution of the
shareholders.
As at 9 June 2008, the Directors have
been notified of the following interests
amounting to 3% or more of the issued
share capital of the Company:
Rights & Issues
Investment
Trust Plc 17,500,000 – 20.03%
N L Mills 5,591,550 – 6.40%
N Lewis 5,650,000 – 6.47%
R B Fletcher 4,946,081 – 5.66%
Framlington Investment 
Management Ltd. 4,850,000 – 5.55%
Directors
The Directors listed on page 20 served
throughout the year. Mr I D Brodie
retires by rotation and, being eligible,
offers himself for re-election.
Directors’ shareholdings 
The interests of the Directors and their
families in the Ordinary Shares at the
beginning and end of the year were as
follows:
31 March 31 March 
2008 2007
David Bramwell 1,500,000 1,500,000
Ian Brodie
Beneficial 608,513 476,776
Conditional 1,000,000 1,000,000
Kevin Edwards
Beneficial 248,951 187,111
Conditional 750,000 750,000
Donald Wilson 294,296 294,296
The Conditional shares have been
issued under the Executive LTIP
scheme.
There are no non-beneficial interests.
There have been no changes in the
above Directors’ interests in the period
to 9 June 2008. 
The Directors’ options to subscribe for
shares under the Executive and other
share option schemes are set out in the
Remuneration Report on pages 29 to 31.
Payment of creditors
The Group’s policy for the year ending 
31 March 2009, for all suppliers, is to fix
terms of payment for each business
transaction, to ensure that the supplier
is aware of those terms, and to abide by
the agreed terms of payment. The
Company had no trade creditors.
Donations
The Group did not make any political 
or charitable donations in the year 
(2007: £Nil).
Employee involvement
During the year the Group has continued
its policy of full involvement of employees
wherever possible. This has taken place
through the provision of information,
consultation on policy issues where
appropriate, and the mutual setting of
objectives against which performance is
measured. The Group takes the approach
of maximising performance through the
heightening of awareness of corporate
objectives and policies.
Disabled persons
It is the Group’s policy to offer equal
opportunities to disabled persons
applying for vacancies, having regard to
their abilities in relation to the job for
which they apply. It is also Group
practice, wherever possible, to continue
the employment of any employees who
become disabled during the course of
their employment.
Special business
A resolution will be proposed at the
Annual General Meeting to renew the
existing authority of the Directors,
conferred by a resolution passed in
September 2007, to allot unissued
shares in the Company. The authority
(resolution 6 in the Notice of Meeting)
will extend until the earlier of the Annual
General Meeting for 2009 and fifteen
months from the date of the Annual
General Meeting for 2008.
Directors’ Report continued
22
Intelek 
Report and Accounts 2008 The Company was authorised at the
Annual General Meeting in September
2007 to purchase up to 10% of its
issued Ordinary Shares, subject to
certain restrictions. This authority has
not yet been exercised, but the
Directors consider that purchases by the
Company of its Ordinary Shares for
cancellation could in certain
circumstances be advantageous to
Shareholders, and are accordingly
seeking the renewal of the authority
(resolution 7 in the Notice of Meeting) to
extend until the earlier of the Annual
General Meeting for 2009 and fifteen
months from the date of the Annual
General Meeting for 2008. This authority
will only be exercised if to do so would
result in an increase in earnings per
share. Under the proposed authority, the
maximum price payable for the
purchase of shares shall not exceed 5%
above the average of the middle market
quotations taken from The London
Stock Exchange Official List for the five
business days before a purchase is
made, and the minimum price shall be
5p per share.
In addition, the Directors consider it
advisable that they continue to have
power to make allotments of Ordinary
Shares in the Company for cash, up to a
maximum of 4,368,804 Ordinary Shares,
being 5% of the issued Ordinary Share
Capital of the Company at 31 March
2008. The authority (resolution 8 in the
Notice of Meeting) will extend until the
earlier of the Annual General Meeting for
2009 and fifteen months from the date
of the Annual General Meeting for 2008.
Resolutions 9 and 10: 
New Articles of Association
It is proposed in resolution 9 to adopt
new articles of association (the “New
Articles”) with immediate effect in order
to update the Company’s current
articles of association (the “Current
Articles”) primarily to take account of
changes in English company law
brought about by the Companies Act
2006 (“2006 Act”) which are in force at
the date of the meeting.
The 2006 Act is being implemented in
stages: some of its provisions are
already in force, further provisions are to
be implemented on 1 October 2008 and
the remaining provisions are proposed
to be implemented on 1 October 2009.
Resolution 10 therefore proposes further
amendments to the New Articles on and
from 1 October 2008, to take account of
provisions of the 2006 Act relating to
Directors’ conflicts of interest being
implemented on that date.
Due to the phased nature of
implementation of the 2006 Act, it is
likely that further changes to the
Company’s articles of association will be
proposed at a later Annual General
Meeting.
The principal changes introduced in the
New Articles are summarised in the
Appendix. Other changes, which are of
a minor, technical or clarifying nature
and also some more minor changes
which merely reflect changes made by
the 2006 Act have not been noted in the
Appendix.
The New Articles showing all the
changes to the Current Articles together
with a copy of the amended New
Articles marked to show the
amendments proposed by resolution 10
are available for inspection, as noted on
page 63 of the accompanying notice 
of AGM.
Auditor
So far as the Directors are aware, there
is no relevant information needed by the
Company’s auditor in connection with
preparing their report of which the
Company’s auditor is unaware.
On 1 July 2007, RSM Robson Rhodes
resigned as auditor, being replaced by
Grant Thornton UK LLP .
Approval
The Report of the Directors was
approved by the Board on 9 June 2008
and signed on its behalf by:
K N Edwards
Director and Secretary
9 June 2008
www.intelek.plc.uk 23 Appendix to the Directors’ Report
Intelek 
Report and Accounts 2008
24
Explanatory notes of principal
changes to the Company’s articles 
of association
The material differences between the
Current Articles and the New Articles are
summarised below. Changes of a minor,
conforming or purely technical nature
have not been mentioned specifically.
Principal changes proposed pursuant
to resolution 9, reflecting the provisions
of the 2006 Act already in force:
1. Articles which duplicate statutory
provisions
Provisions in the Current Articles
which replicate provisions
contained in the 2006 Act are in the
main removed in the New Articles.
This is in line with the approach
advocated by the Government that
statutory provisions should not be
duplicated in a company’s
constitution. Certain examples of
such provisions include provisions
as to the form of resolutions, the
requirement to keep accounting
records and provisions regarding
the period of notice required to
convene general meetings. The
main changes made to reflect this
approach are detailed below.
2. Form of resolution
The Current Articles contain a
provision that, where for any purpose
an ordinary resolution is required, a
special or extraordinary resolution is
also effective and that, where an
extraordinary resolution is required, a
special resolution is also effective.
This provision is being removed as
the concept of extraordinary
resolutions has not been retained
under the 2006 Act. Further, the
remainder of the provision is
reflected in full in the 2006 Act.
The Current Articles enable
members to act by written
resolution. Under the 2006 Act,
public companies can no longer
pass written resolutions. These
provisions have therefore been
removed in the New Articles.
3. Variation of class rights
The Current Articles contain
provisions regarding the variation of
class rights. The proceedings and
specific quorum requirements for a
meeting convened to vary class rights
are contained in the 2006 Act. The
relevant provisions have therefore
been amended in the New Articles.
4. Fractions
The Current Articles contain a
provision providing that if a
consolidation or subdivision of
shares results in members being
entitled to fractions of shares, the
Board can deal with such fractions
as it thinks fit, including selling the
fractions and distributing the
proceeds in proportion among the
members. For clarity, this provision
has been amended in the New
Articles to provide where any
member's entitlement to a portion
of the proceeds of sale of the
fractions amounts to less than
£3.00, the Board can distribute that
member’s proceeds to charity.
5. Convening general meetings
The provisions in the Current
Articles dealing with the convening
of general meetings and the length
of notice required to convene
general meetings are being
removed in the New Articles
because the relevant matters are
provided for in the 2006 Act. In
particular, a general meeting (other
than an Annual General Meeting) to
consider a special resolution can be
convened on 14 days’ notice
whereas previously 21 days’ notice
was required. In addition, the
Chairman of a general meeting no
longer has a casting vote.
6. Votes of members
Under the 2006 Act, proxies are
entitled to vote on a show of hands,
whereas under the Current Articles
proxies are only entitled to vote on a
poll. The time limits for the
appointment or termination of a
proxy appointment have been
altered by the 2006 Act so that the
articles cannot provide that they
should be received more than 48
hours before the meeting or in the
case of a poll taken more than 48
hours after the meeting, more than
24 hours before the time for the
taking of a poll, with weekends and
bank holidays being permitted to be
excluded for this purpose. The New
Articles give the directors discretion,
when calculating the time limits, to
exclude weekends and bank
holidays. Multiple proxies may be
appointed provided that each proxy
is appointed to exercise the rights
attached to a different share held by
the shareholder. The New Articles
reflect all of these provisions.
Under section 323(1) of the 2006
Act, a corporate shareholder can
now appoint more than one
corporate representative. The
Company is aware of concerns that
have been raised about the effect of
section 323(4) of the 2006 Act,
which provides that where multiple
corporate representatives of the
same corporate shareholder vote
differently, the power to vote is
treated as not having been
exercised. As the New Articles
generally avoid duplicating
provisions of the 2006 Act, the New
Articles do not incorporate or
explicitly reflect the terms of section
323(4) of the 2006 Act. The
Company intends to take account
of best practice to allow, as far as
possible, multiple corporate
representatives to attend general
meetings of the Company and
ensure their votes are counted.
7. Notice of board meetings
Under the Current Articles, when a
Director is abroad he can request that
notice of Directors’ meetings are sent
to him at a specified address and if
he does not do so he is not entitled
to receive notice while he is away.
This provision has been removed, as
modern communications mean that
there may be no particular obstacle
to giving notice to a Director who is
abroad. It has been replaced with a
more general provision that a Director
is treated as having waived his
entitlement to notice, unless he
supplies the Company with the
information necessary to ensure that
he receives notice of a meeting
before it takes place.
8. Records to be kept
The provision in the Current Articles
requiring the Board to keep
accounting records has been
removed as this requirement is
contained in the 2006 Act. 
9. Directors’ indemnities
The 2006 Act has in some areas
widened the scope of the powers of
a company to indemnify Directors.
In particular, a Company that is a
trustee of an occupational pension
scheme can now indemnify a
Director against liability incurred in
connection with the Company’s
activities as trustee of the scheme.
This is reflected in the New Articles.
The opportunity is also being taken 25 www.intelek.plc.uk
to clarify that, subject to the 2006
Act, the Company may grant
indemnities to Directors of
associated companies.
The New Articles also contain a
provision allowing a Director to vote
and be counted in the quorum at a
board meeting in respect of any
resolution concerning
indemnification (including loans) by
the Company in relation to the
performance of his or her duties.
This clarifies the ability of the Board
to adopt indemnities in favour of
Directors in accordance with the
2006 Act.
10. General
Several statutory references have
been amended in the New Articles
to take account of the
implementation of provisions in the
2006 Act and repeal of
corresponding sections of the
Companies Act 1985. Some
definitions have also been changed
and additional definitions added to
bring them in line with relevant
provisions of the 2006 Act. In
addition, other miscellaneous non
material changes have been made
to reflect current law and practice.
Principal changes proposed
pursuant to resolution 10,
reflecting provisions of the 2006
Act coming into force on 
1 October 2008:
11. Conflicts of interest
The 2006 Act sets out Directors’
general duties which largely codify
the existing law but with some
changes. Under the 2006 Act, from
1 October 2008 a Director must
avoid a situation where he has, or
can have, a direct or indirect
interest that conflicts, or possibly
may conflict with the Company’s
interests. The requirement is very
broad and could apply, for example,
if a Director becomes a Director of
another company or a trustee of
another organisation.
Section 175(5)(b) of the 2006 Act
allows Directors of public
companies to authorise conflicts
and potential conflicts where the
articles of association contain a
provision to this effect. The 2006
Act also allows the articles of
association to contain other
provisions for dealing with
Directors’ conflicts of interest so
that the relevant company’s
Directors may avoid breaching their
duties. The amended New Articles
give the Directors authority to
approve conflicts and potential
conflicts of interest and include
other provisions to allow conflicts of
interest to be dealt with in a similar
way to the current position.
There are safeguards which will
apply when Directors decide
whether to authorise a conflict or
potential conflict. First, only
independent Directors (ie those
who have no interest in the matter
being considered) will be able to
take the relevant decision, and
secondly, in taking the decision the
Directors must act in a way they
consider, in good faith, will be most
likely to promote the Company’s
success. The Directors will be able
to impose limits or conditions when
giving authorisation if they think this
is appropriate.
It is also proposed that the
amended New Articles should
contain provisions relating to
confidential information, attendance
at Board meetings and availability
of Board papers. These provisions
will only apply where the position
giving rise to the potential conflict
has previously been authorised by
the Directors as set out above.
It is the Board's intention to report
annually on the Company's
procedures for ensuring that the
Board’s powers to authorise conflicts
are operated effectively and that the
procedures have been followed.
Statement of Directors’ Responsibilities
Company law in the United Kingdom
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
the Group and of the profit or loss of the
Group for that period. 
The Directors are required to prepare the
Group financial statements in accordance
with IFRS as adopted by the EU and have
elected to prepare the Parent Company
financial statements in accordance with
UK Accounting Standards. 
In preparing each of the Group and
Parent Company 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;
 for the Group financial statements,
state whether they have been
prepared in accordance with IFRS
as adopted by the EU; and
 for the Parent Company financial
statements, state whether
applicable UK Accounting
Standards have been followed.
The Directors are responsible for
ensuring that the Company and the
Group maintain proper accounting
records which disclose with reasonable
accuracy at any time the financial
position of the Company and enable
them to ensure that the financial
statements comply with the Companies
Act 1985. They are also responsible for
safeguarding the assets of the Company
and hence for taking reasonable steps
for the prevention and detection of fraud
and other irregularities.
The Directors are responsible for the
maintenance and integrity of the
corporate and financial information on the
Group’s website. Legislation in the United
Kingdom governing the preparation and
dissemination of the financial statements
and other information included in annual
reports may differ from legislation in other
jurisdictions. 
On behalf of the Board 
K N Edwards
Director and Secretary
9 June 2008 Corporate Governance Report
26
Intelek 
Report and Accounts 2008
Combined Code
As a company listed on the Alternative
Investment Market of the London Stock
Exchange, Intelek plc is not required to
comply with the Combined Code (‘the
Code’). However, the Directors have
adopted the Code as best practice and
seek to comply to the extent practicable
for the size of the Company and its
operations. A statement on how the
Company has applied the principles and
a statement explaining the extent to
which it has complied with the
provisions of the Code appear below.
The Code contains fourteen principles
of governance, which are divided into
the following six areas:
1. Directors
The Company is controlled through a
Board of Directors, which presently
comprises two executive and two non-
executive Directors. David Bramwell is
non-executive Chairman, Ian Brodie is
Chief Executive and Kevin Edwards is
Finance Director. Donald Wilson is the
Senior Independent non-executive
Director. All Directors will submit
themselves for re-election at least every
three years. Appointments to the Board
are made on the recommendation of the
Nomination Committee.
The Board has a formal schedule of
matters reserved to it and meets at least
eleven times a year. It is responsible for
overall Group strategy, policy on
corporate governance issues,
acquisition policy, approval of major
capital expenditure and consideration of
significant financial and operational
matters. It monitors the exposure to key
business risks and reviews the strategic
direction of the trading subsidiaries, their
annual budgets and progress towards
the achievement of those budgets and
their investment programmes. It also
considers legislative, environmental,
health and safety and employment
issues. The Board has approved a
written statement of the division of key
responsibilities between the Chairman
and the Chief Executive.
The Chairman leads the Board, ensuring
that each Director is able to make an
effective contribution. He also monitors
the information provided to the Board to
ensure it is sufficient, timely and clear, and
from time to time the Board reviews the
adequacy of this information.
The Board held twelve meetings during
2007/08, other than those required for
specific approvals (for example, bank
mandates and annual accounts). The
attendances were:
David Bramwell 12
Ian Brodie 12
Kevin Edwards 12
Donald Wilson 12
Two of the meetings were combined
with visits to subsidiary Company
operations and one included
presentations by senior executives on
their areas of responsibility. Individual
visits to operational sites by non-
executive Directors also occurred. In
addition to the regular Board meetings,
key financial information is circulated to
Directors outside of meetings. The Chief
Executive has regular direct contact with
the non-executive Directors and keeps
them informed of material developments
between Board meetings.
All Directors have direct access to the
Company Secretary and are able to take
independent professional advice in the
furtherance of their duties if necessary.
The Company maintains Directors’ &
Officers’ insurance in respect of the risk
of claims against Directors.
The Chairman held two meetings during
the year with the non-executive Director,
without the executive Directors being
present. The Senior Independent
Director held one meeting during the
year with the other Directors, without
the Chairman being present, to review
the Chairman’s performance, as
described in more 
detail below.
The Board has adopted an induction
process for new Directors and this is
facilitated by the Chief Executive and
the Company Secretary. The Chairman
ensures that all Directors receive
appropriate training on appointment and
then subsequently as needed, taking
into account their need to update their
skills and their knowledge of the
Company’s business. 
The Board has established three
standing committees, the Audit
Committee, the Remuneration
Committee and the Nomination
Committee, which operate within
defined terms of reference. Details may
be obtained from the Company
Secretary. The minutes of committee
meetings are available to all the
Directors. During the year, the
Remuneration Committee met twice, 
the Audit Committee twice and the
Nomination Committee once. All
committee meetings were attended by 
all members of the relevant committee. 
The Board undertakes an annual
evaluation of its performance and the
performance of its committees and the
individual Directors. This comprises:
 Appraisal of the Finance Director by
the Chief Executive
 Appraisal of the Chief Executive by
the Senior Independent non-
executive Director
 Appraisal of the Chairman and the
other non-executive Directors and
of the Board as a whole collectively
by the Board
The appraisals focused on performance
against objectives set for the past year,
on establishing objectives for the new
financial year and, for the Board, on its
operation and effectiveness. The Board
was satisfied that the process showed
that the Board and its committees
worked effectively. 
2. Directors’ remuneration
The Remuneration Committee consists
of the Chairman and the Senior
Independent non-executive Director and
meets at least two times a year. Its
responsibilities include a review of the
performance of executive Directors and
other senior executives prior to
determining their remuneration. The
remuneration of the non-executive
Directors is determined by the Board of
Directors as a whole. No Director plays
a part in the discussion about his own
remuneration. 
The Remuneration Report is set out on
pages 29 to 31. 
3. Nomination committee
The principal role of the Nomination
Committee is to identify and nominate,
for Board approval, candidates to fill
Board vacancies as and when they arise. www.intelek.plc.uk 27
It is required to prepare a description of
the role, and capabilities required, for any
appointment, and to maintain contact
with major shareholders about
appointments to the Board. It also
reviews the induction process for newly
appointed Directors, reviews annually the
time required of non-executive Directors,
keeps the structure, size and composition
of the Board under review, and considers
Board succession planning for both
executive and non-executive Directors.
The committee comprises Donald Wilson
(Chairman), David Bramwell, both
Independent non-executive Directors,
and Ian Brodie, Chief Executive. 
For Board appointments the committee
seeks advice and recommendations
from the Group’s lawyers, corporate
finance advisers and auditors.
During the year, the committee reviewed
the balance of experience on the Board
and recommended to the Board that no
additional appointments were required.
The Chairman of the Nominations
Committee will be available at the
Annual General Meeting to answer any
questions about the work of the
committee.
4. Accountability and audit 
A review of the performance of the
Group’s trading subsidiaries, of the
financial position of the Group and of
the Group’s prospects is included in the
Chairman’s statement, the Chief
Executive’s review and the Financial
Review set out on pages 4 to 19. The
Directors’ responsibilities for the
financial statements are described on
page 25. 
Internal Control
The Board of Directors is responsible for
the Group’s system of internal control
and for reviewing its effectiveness. In
designing the system of internal control,
consideration is given to the significant
risks to the business, the probability of
these risks manifesting themselves and
the overall cost of controlling them. The
system is designed to manage rather
than eliminate the risk of failing to
achieve business objectives and
therefore can only provide reasonable,
and not absolute, assurance against
material misstatement or loss.
The implementation and day-to-day
operation of the system of internal
controls has been delegated to executive
Directors and senior management, but the
effectiveness of the system is regularly
reviewed by the Board in a process that
accords with the Turnbull Report. As part
of its corporate governance procedures,
the Board has received regular reports on
specific areas of risk. If appropriate, these
reports include recommendations for
improvement in controls or for the
management of those risks. Furthermore,
steps continue to be taken to integrate
risk management procedures into the
Group’s operations, to extend awareness
of the importance of the management of
risk and to ensure that recommended
improvements brought to the attention of
the Board are implemented. In
conjunction with the Audit Committee, the
Board has carried out an annual review of
the overall effectiveness of the system of
internal control and risk management
procedures during the year and up until
the date of approval of the annual report.
Audit committee and auditors
Role of the audit committee
The Audit Committee is responsible for:
 Monitoring the integrity of the
financial statements of the
Company and any formal
announcements relating to the
Company’s financial performance,
and reviewing significant financial
reporting judgements contained
therein;
 Reviewing the Company’s internal
financial controls and, unless
expressly addressed by the Board
itself, the Company’s internal
control and risk management
systems;
 Monitoring and reviewing the
effectiveness of the Company’s
internal audit operation;
 Making recommendations to the
Board, for a resolution to be put to
the shareholders for their approval
in general meeting, in relation to the
appointment of the external
auditors and the approval of the
remuneration and terms of
engagement of the external
auditors;
 Reviewing and monitoring the
external auditors’ independence
and objectivity and the
effectiveness of the audit process,
taking into consideration relevant
UK professional and regulatory
requirements; 
 Developing and implementing a
policy on the engagement of the
external auditors to supply non-
audit services, taking into account
relevant guidance regarding the
provision of non-audit services by
the external audit firm.
The Audit Committee is required to
report its findings to the Board,
identifying any matters in respect 
of which it considers that action or
improvement is needed, and make
recommendations as to the steps to 
be taken.
Composition of the audit committee
The Audit Committee comprises David
Bramwell (Chairman) and Donald
Wilson, both of whom served
throughout the year. Both members of
the committee are considered to be
independent. David Bramwell has
relevant financial experience.
Meetings and attendance
The committee met twice during 2007/08
to consider, inter alia, the annual results,
the interim results and the independence,
objectivity and reappointment of the
Auditors. Internal financial control
systems were also considered at each
meeting. The Chairman of the committee
also invited the Chief Executive and the
Finance Director to attend each meeting
and the internal auditor and external
auditors to attend the meeting for the
year’s results. During the latter meeting,
the external auditors were given the
opportunity to talk with the committee
without the presence of management.
Main activities of the
committee during the year
At its meeting in May, the committee
reviewed the annual financial statements
of the Company and received reports
from the internal auditors on control
matters and from the external auditors
on the conduct of their audit, their 
review of accounting policies, areas of
judgement and the financial statements Corporate Governance continued
28
Intelek 
Report and Accounts 2008
and their comments on risk and internal
control. A similar review was undertaken
at its November meeting when the
interim statements were considered.
External auditors
The Company places great importance
on the effectiveness and independence
of its external auditors and, together with
them, is careful to ensure their objectivity
is not compromised. At its May meeting,
the auditors presented to the committee
the findings from their audit, together
with details of how they ensure that their
objectivity and independence are not
compromised.
It is the role of the committee to ensure
compliance with the Board’s policy in
respect of services provided by, and
fees paid to, the auditors. Audit fees are
negotiated by the Finance Director and
approved by the Audit Committee. For
other services that may be provided by
the auditors, the Company’s policy is:
Audit related services
The auditors are invited by the
Company to undertake those services
that they are required to and are most
suited to perform. Such work would
include stock exchange related
reporting and, where appropriate,
assistance with acquisitions.
Taxation
The external auditors assist the Group 
to meet general tax compliance
requirements as well as providing advice
on acquisitions and tax planning.
Should opportunities arise for them to
advise on special tax projects, their
suitability is assessed at the time to
ensure it would not compromise their
audit independence, with the work
being tendered where appropriate.
Consulting
To avoid any possible conflict of interest
the Group’s policy is not to employ its
auditors for general consulting work.
Following its May 2007 meeting, the
committee recommended to the Board
that a resolution be put to shareholders
at the Annual General Meeting for the
reappointment of the external auditors,
and to authorise the Directors to fix their
remuneration.
Internal audit
The internal audit work is contracted-
out to Norris Small, Chartered
Accountants. The firm has no
association with the external auditors.
As well as its reviews of the internal
auditor’s role and processes, during its
meeting in 2007/08, the committee
received presentations from the internal
auditor, the results of work undertaken
by him and his plan for work in 2008.
The committee considered the need for
an internal audit function and decided
that, in view of the size 
of the Group, a full-time resource could
not be justified and that the service
should continue to be contracted-out.
Overview
As a result of its work during the year, 
the Audit Committee has concluded that
it has acted in accordance with its terms 
of reference and has ensured the
independence and objectivity of the
external auditors.
The Chairman of the Audit Committee
will be available at the Annual General
Meeting to answer any questions about
the work of the committee.
5. Relations with shareholders
The Company encourages two-way
communication with both its institutional
and private investors and responds
promptly to all enquiries received orally
or in writing. During the year the
Chairman, Chief Executive and the
Finance Director, either separately or
together, attended a number of
meetings with analysts, and with major
shareholders. Written reports about the
Company by analysts or brokers are
circulated to all Directors.
Broker research notes, annual and
interim reports and presentations are
made available electronically on the
Company’s website.
All shareholders receive at least twenty
working days’ notice of the Annual
General Meeting at which all Directors
are available for questions. Each
substantive issue is the subject of a
separate resolution. The numbers of
proxy votes for and against each
resolution are announced at the meeting,
after the voting has taken place.
6. Going concern
After making enquiries, the Directors
have formed a judgement at the time of
approving the financial statements that
there is a reasonable expectation that
the Company and the Group have
adequate resources to continue in
operational existence for the
foreseeable future. For this reason, they
continue to adopt the going concern
basis in preparing the financial
statements.
7. Corporate governance 
compliance statement
The Company is pleased to report that it
has complied throughout the year
ended 31 March 2008 with the
provisions set out in Section 1 of the
Code, except:
A2.2 The Chairman is a Director of
Rights and Issues Investment Trust plc, 
a significant shareholder of Intelek plc.
The Board is satisfied that this does not
influence the Chairman in his role on 
the Board and considers him to be
independent for the purposes of 
the Code.
A3.1 The Senior Independent Director,
Don Wilson, has been on the Board
since his appointment on 14 July 1995.
The Board considers that Don Wilson
continues to provide independent and
valuable input to the Board, bringing to
bear his extensive experience as a
senior executive at Rank Xerox and
elsewhere.
D1.1 The Senior Independent Director
does not attend meetings with major
shareholders as a matter of routine.
However, he is available should he be
required and is present at the AGM. 
The Chairman attends the six-monthly
announcements to shareholders and,
with a 1.7% shareholding, has a close
affinity with shareholders’ interests. Remuneration Report
29
The Directors present the Remuneration
Report for the financial year ended 
31 March 2008.
The auditors report to the shareholders
on the “auditable part” of the Directors’
Remuneration Report and state whether
in their opinion the “auditable part” of
the Directors’ Remuneration Report has
been prepared in accordance with the
Companies Act 1985. This Report
therefore has separate sections
containing unaudited and audited
information.
Unaudited Information
Remuneration Committee
The Remuneration Committee is
responsible for determining the
remuneration and other terms of
employment of the executive Directors.
No external advisers have been used. In
determining remuneration for the year, the
Committee has given full consideration to
the requirements of the Combined Code. 
The Remuneration Committee consists
wholly of independent non-executive
Directors who have no day-to-day
involvement in the running of the
Group’s business. The following
independent non-executive Directors
served as members of the
Remuneration Committee during the
year and to the date stated:
Donald Wilson (Chairman of the
Remuneration Committee) 
(to 9 June 2008)
David Bramwell (to 9 June 2008)
Remuneration policy
The key objectives of the Committee in
determining the remuneration packages
of executive Directors for 2008 and
subsequent years are:
1. The recruitment, retention and
incentivisation of Executive
management. 
2. The alignment of Executive
management and shareholder
interests.
The remuneration packages of
executive Directors comprise the
following elements:
Basic salary and benefits
Basic annual salaries for executive
Directors are reviewed annually having
regard to individual performance and
market practice. Benefits provided to
executive Directors vary but may
comprise the provision of a Company
car and health insurance. 
Annual bonus
The targets for annual bonus are set each
year by the Committee. The maximum
bonus is 100% of basic salary. The bonus
is paid in cash but if the bonus exceeds
10% of basic salary, the Directors are
required to apply 33% of the net amount
in the acquisition of the Company’s
shares. The bonus for 2007/08 comprised
three elements based respectively on: (a)
Underlying Profit Before Tax at each
quarter end during the year; (b) Net debt
at the year end; (c) Underlying EPS for the
full year commencing at 90% of the prior
year EPS.
Long-Term Incentive Plan — 
Executive Scheme
(i) Share options
The Executive Share Option Scheme is
designed to promote long-term
improvement in the performance of the
Company, sustained increase in
shareholder value and clear linkage
between Executive reward and the
Company’s performance. There are two
sections of the scheme still operative,
1995 and 2000. The 1995 and 2000
sections are conditional upon achieving
headline EPS growth in the aggregate of
6% above RPI in the 3 years prior to
exercise. No further grants of options
can be made under this scheme.
(ii) Share scheme — Executive LTIP
Under this scheme, shares may be
issued to members of the executive from
time to time, subject to compulsory
resale of the shares to Intelek’s ESOP
trust at a nominal price to the extent that
performance conditions are not satisfied.
The shares are divided into four equal
parts, two for each measurement period,
3 and 5 years, and, within each period,
one for each performance criterion,
Underlying EPS and Shareholder Return.
The Remuneration Committee sets
targets for EPS. Shareholder Return is
measured against movement in the
techmark 100 index. If less than 80% of
the target is reached, no shares vest; if
80%, 25% vest; if 120%, 100% vest;
and pro rata in between.
Directors’ shareholdings
These are as set out in the Directors’
Report on page 22.
Pension contributions
The Company makes annual
contributions to the Intelek Pension
Schemes for the executive Directors.
The Schemes are funded, Inland
Revenue approved, contributory
occupational pension schemes.
Service contracts and letters of
appointment
The executive Directors are provided
with service contracts, none of which
exceeds one year.
Ian Brodie has a notice entitlement of
one year. Kevin Edwards has a notice
entitlement of six months. In the event
of the Company being taken over and
the Directors leaving the Company, the
notice periods are as follows: Ian
Brodie, two years; Kevin Edwards, one
year. Donald Wilson and David Bramwell
have contracts with notice entitlements
of three months.
The Committee considers the Directors’
notice entitlements to be appropriate as
they are in line with the market and take
account of the Directors’ knowledge
and experience.
Non-executive Directors
The fees of non-executive Directors are
determined by the full Board to an
amount not exceeding £200,000, as set
out in the Articles of Association. The
non-executive Directors are not eligible
for bonuses or pension benefits. Remuneration Report continued
30
Intelek 
Report and Accounts 2008
Performance graph
This graph shows the Company’s
performance for the last five years, as
measured by the Total Shareholder
Return (TSR) (with dividends reinvested),
for equity shareholders of Intelek plc,
compared with the TSR of the Techmark
100 index.
This index was chosen as it represents a
broad indication of performance in the
sector in which the Company operates.
Audited information
Directors’ emoluments
Details of the Directors’ emoluments are as follows:
Current year Previous year
Pension Pension
Salary/ contribu- contribu-
fees Benefits Bonus tions Total tions Total
£000 £000 £000 £000 £000 £000 £000
Executive
Ian Brodie 162 16 112 38 328 37 326
Kevin Edwards 126 11 86 21 244 20 236
Non-Executive
David Bramwell 35 ——— 35 — 35
Nigel Mills (to 15 Sept. 2006) ——— — — 5 20
Donald Wilson 24 ——— 24 — 24
Total 347 27 198 59 631 62 641
Benefits comprise primarily car allowances and medical care. In addition, £43,000 has been accrued for the Executive LTIP
(2007: £23,000).
No Director was materially interested either at the year end or during the year in any contract of significance to the Group.
2008 2007
Directors’ pensions No. No.
The number of Directors who are accruing benefits under:
— money purchase schemes 2 2
— defined benefit schemes (further accrual terminated 1 October 2002) 1 1
300
280
260
240
220
200
180
160
140
120
100
Return
2003 2004 2005 2006 2007 2008
Total Return Analysis
Intelek       Techmark 100
Source: Bloomberg Directors’ defined benefit pension entitlement excluding additional voluntary contributions:
Increase in accrued Transfer value of Accumulated total Accumulated total 
annual pension increase less Directors’ accrued pension at accrued pension at
excluding inflation contributions 31 March 2008 31 March 2007
£000 £000 £000 £000
Ian Brodie 1 22 20 18
The transfer value of the Directors’ accrued benefit at the end of the financial year is shown below. (Note that the transfer value
represents a liability of the Company, not a sum paid or due to an individual.)
Ian Brodie £000
Transfer value at 31 March 2007 278
Increase in transfer value (less Directors’ contributions) 32
Transfer value at 31 March 2008 310
Directors’ share options
Ordinary shares under the Executive Scheme, all of which are exercisable:
Granted Exercised Expired Option
31 March during during during 1 April price Expiry
Scheme 2008 year year year 2007 £ date
Ian Brodie 1995 — —— (250,000) 250,000 0.360 29.07.07
Special — — (350,000) (350,000) 700,000 0.170 20.09.07
2000 250,000 —— — 250,000 0.190 11.02.12
Total 250,000 — (350,000) (600,000) 1,200,000
Kevin Edwards 1995 — —— (150,000) 150,000 0.350 28.07.07
2000 250,000 —— — 250,000 0.190 11.02.12
2000 100,000 — —— 100,000 0.105 07.01.13
Total 350,000 — — (150,000) 500,000 
Ian Brodie exercised share options at 17p a share on 18 July 2007.
The bid price at 31 March 2008 was 13.5p. The highest bid price during the year was 23.0p and the lowest bid price during the
year was 13.5p.
The performance criteria for annual bonuses and share options are set out in the unaudited section of this report.
Approval
The Directors’ Remuneration Report was approved by the Board on 9 June 2008 and signed on its behalf by:
D Wilson
Director
Chairman of the Remuneration Committee
9 June 2008
31 Independent Auditor’s Report to the Members of Intelek plc
32
Intelek 
Report and Accounts 2008
We have audited the Group financial
statements of Intelek plc for the year
ended 31 March 2008, which comprise
the Consolidated Income Statement, the
Consolidated Statement of Recognised
Income and Expense, the Consolidated
Balance Sheet, the Consolidated Cash
Flow Statement and Notes 1 to 32 of the
financial statements. These Group
financial statements have been
prepared under the accounting policies
set out therein.
We have reported separately on the
Parent Company financial statements of
Intelek plc for the period ended 
31 March 2008.
This report is made solely to the
Company’s shareholders, 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 shareholders
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
shareholders, as a body, for our audit
work, for this report, or for the opinions
we have formed.
Respective responsibilities of
Directors and auditor
The Directors’ responsibilities for
preparing the Annual Report and the
Group financial statements in
accordance with applicable law and the
International Financial Reporting
Standards (IFRS) as adopted by the
European Union are set out in the
Statement of Directors’ Responsibilities.
Our responsibility is to audit the Group
financial statements in accordance with
relevant legal and regulatory
requirements and International
Standards on Auditing (UK and Ireland).
We report to you our opinion as to
whether the Group financial statements
give a true and fair view and whether the
Group financial statements have been
properly prepared in accordance with
the Companies Act 1985. We also report
to you if the information given in the
Directors’ Report is consistent with the
financial statements. The information
given in the Directors’ Report includes
that specific information presented in
the Chairman’s Statement, the Chief
Executive’s Review and the Financial
Review that is cross-referenced from the
Business review and principal activities
section of the Directors’ Report.
In addition, we report to you if, in our
opinion, the Company has not kept
proper accounting records, if we have
not received all the information and
explanations we require for our audit, or
if information specified by law regarding
Directors’ remuneration and other
transactions is not disclosed.
We read other information contained in
the Annual Report and consider whether
it is consistent with the audited Group
financial statements. The other
information comprises the Chairman’s
Statement, The Chief Executive Review,
the Financial Review, the Directors and
Senior Officers, the Corporate
Governance Report and the
Remuneration Report. We consider the
implications for our report if we become
aware of any apparent misstatements or
material inconsistencies with the Group
financial statements. Our responsibilities
do not extend to any information
outside the Annual Report. 
Basis of audit opinion 
We conducted our audit in accordance
with International Standards on Auditing
(UK and Ireland) issued by the Auditing
Practices Board. An audit includes the
examination, on a test basis, of
evidence relevant to the amounts and
disclosures in the Group financial
statements. It also includes an
assessment of the significant estimates
and judgements made by the Directors
in the preparation of the financial
statements, and of whether the
accounting policies are appropriate to
the Group’s 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 Group financial
statements are free from material
misstatement, whether caused by fraud
or other irregularity or error. In forming
our opinion we also evaluated the
overall adequacy of the presentation of
information in the Group financial
statements.
Opinion
In our opinion:
 The Group financial statements give
a true and fair view in accordance
with the IFRS’s as adopted by the
European Union, of the state of
affairs of the Group as at 31 March
2008 and of its profit for the year
then ended.
 The Group financial statements
have been properly prepared in
accordance with the Companies
Act 1985.
 The information given in the
Directors’ Report is consistent with
the financial statements.
Grant Thornton UK LLP
Chartered Accountants and Registered
Auditor
Birmingham B5 4UU
9 June 2008 Consolidated Income Statement
for the year ended 31 March 2008
33
2008 2007
Note £000 £000
Continuing Operations
Sales 3 35,962 36,840
Cost of goods sold (24,861) (26,189)
Gross profit 11,101 10,651
Selling and administrative expenses (5,305) (2,389)
Research and development expenses (1,978) (2,075)
Operating profit* 3,818 6,187
Interest receivable 4 27 46 
Interest payable 4 (477) (419)
Expected return on pension scheme assets 5 1,042 1,092 
Interest on pension scheme obligations 5 (1,101) (1,284)
Finance costs — net (509) (565)
Profit before tax from continuing operations† 3,309 5,622
Taxation 9 (953) (1,789)
Profit for the year attributable to equity shareholders 2,356 3,833
Earnings per share — basic 10 2.78p 4.53p
Earnings per share — diluted 10 2.77p 4.53p
* Underlying operating profit 7 3,818 2,905
† Underlying profit before tax 7 3,309 2,340
Consolidated Statement of Recognised Income and Expense
for the year ended 31 March 2008
2008 2007
Note £000 £000
Foreign exchange translation differences (net of tax) (35) (316) 
Net gain/(loss) on hedge of net investment in foreign subsidiary (net of tax) 24 107
Actuarial gains and losses on defined benefit pension plan 5 (873) (215)
Deferred tax on actuarial gains and losses 5 244 60
Income and expense recognised directly in equity (640) (364)
Profit for the year 2,356 3,833
Total recognised income and expense for the year
attributable to equity shareholders of the Parent 1,716 3,469 Consolidated Balance Sheet
as at 31 March 2008
34
Intelek 
Report and Accounts 2008
2008 2007
Note £000 £000
ASSETS
Goodwill 12 13,366 13,391
Intangible assets 13 383 337
Property, plant and equipment 14 5,864 6,051
Deferred tax assets arising on pension obligation 5, 19 1,459 1,479
Other deferred tax assets 19 817 1,000
Total non-current assets 21,889 22,258
Inventories 15 3,706 3,883
Trade and other receivables 16 6,292 6,494
Current tax assets 17 112 —
Cash and cash equivalents 18 1,245 543
Total current assets 11,355 10,920
Total assets 33,244 33,178
LIABILITIES
Defined benefit pension obligation 5 (5,212) (5,283)
Borrowings 31 (2,994) (2,999)
Deferred tax liabilities 19 (450) (366)
Deferred government grants 20 (78) (86)
Total non-current liabilities (8,734) (8,734)
Borrowings 31 (2,115) (2,670)
Trade and other payables 21 (6,381) (6,496)
Current tax liabilities 17 — (469)
Provisions and other liabilities 22 (50) (265)
Total current liabilities (8,546) (9,900)
Total liabilities (17,280) (18,634)
Net assets attributable to equity shareholders 25 15,964 14,544 
SHAREHOLDERS’ EQUITY
Issued capital 23 4,369 4,369 
Own shares 25, 26 (429) (488)
Other reserves 25 3,411 3,411 
Retained earnings 25 8,613 7,252
Total equity 15,964 14,544
Approved by the Board of Directors and signed on their behalf on 9 June 2008 by:
I D Brodie K N Edwards
Director Director Consolidated Income Statement
www.intelek.plc.uk 35
Consolidated Cash Flow Statement
for the year ended 31 March 2008
2008 2007
Note £000 £000
Cash flows from operating activities
Cash generated from operations 27 4,101 286
Interest paid (477) (419)
Interest received 27 46 
Tax paid (985) (20)
Net cash from operating activities 2,666 (107)
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 15 5
Purchases of property, plant, equipment and intangible assets (604) (316)
Net cash from investing activities (589) (311)
Cash flows from financing activities
Share issues 60 —
Increase/(decrease) in bank loans 144 (634) 
Finance lease payments (769) (704)
Dividends paid 11 (355) (315)
Net cash from financing activities (920) (1,653)
Net increase/(decrease) in cash and cash equivalents 1,157 (2,071) 
Cash and cash equivalents at 1 April (963) 1,114
Effect of foreign exchange rates (2) (6)
Cash and cash equivalents at 31 March 28 192 (963) Notes to the Financial Statements
for the year ended 31 March 2008
36
Intelek 
Report and Accounts 2008
1. Significant Accounting Policies
(a) Basis of preparation
These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as
adopted for use in the European Union and IFRIC interpretations and with those parts of the Companies Act 1985 applicable to
companies reporting under IFRS. The Group financial statements have been prepared under the historical cost convention with
the exception of derivative financial instruments which are measured at fair value. The policies have been consistently applied
for all years presented. The following IFRS have been issued but were not effective for the period of these financial statements:
 IFRS 8 “Segmental Reporting” — Effective for periods commencing on or after 1 January 2009. It will require additional
disclosure. This is not expected to change significantly the current disclosure provided in accordance with IAS 14.
The following amendments to standards and interpretations are unlikely to have a material impact on the Group’s results, assets
and liabilities:
 IAS 1 (Revised 2007) — “Presentation of Financial Statements”
 IFRS 3 (Revised 2008) — “Business combinations”
 IAS 27 (Revised 2008) — “Consolidated and Separate Financial Statements”
 IAS 23 (Amendment) — “Borrowing costs”
 IAS 32 (Revised) — “Financial instruments”
 IFRIC 12 — “Service concession arrangements”
 IFRIC 13 — “Customer loyalty programmes”
 IFRIC 14 — “IAS 19 — The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction”
(b) Basis of consolidation
Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to
govern the financial and operating policies of an entity so as to obtain benefits from its activities. The financial statements of all
of the Group’s subsidiaries are included in the consolidated financial statements from the date that control commences until the
date that control ceases.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the
effective date of acquisition or up to the effective date of disposal. 
All Intra-Group transactions, balances, income and expenses are eliminated on consolidation.
(c) Business combinations
The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition is measured as the
aggregate of the fair values, at the date of exchange, of the assets given, liabilities incurred or assumed, and equity instruments
issued by the Group in exchange for control of the acquiree, plus any costs directly attributable to the business combination.
The assets, liabilities and contingent liabilities that meet the conditions under IFRS 3 are recognised at their fair values at the
acquisition date.
Goodwill arising on acquisition is recognised as an asset, being the excess of the cost of the business combination over the net
fair value of the assets being acquired. 
(d) Foreign currency
The individual financial statements for each Company are presented in the currency of the primary economic environment in
which it operates (its functional currency). For the purposes of the consolidated financial statements, the results and financial
position of the Group are expressed in pounds sterling, which is the functional currency of the Company. 
In preparing the financial statements of the individual companies, transactions in currencies other than the entity’s functional
currency are translated at the foreign exchange rate ruling at the date of transaction. Monetary assets and liabilities in foreign
currencies are translated at the exchange rates ruling at the balance sheet date. Foreign exchange differences arising are
recognised in the income statement.
The results and cash flows of overseas subsidiaries are translated to sterling at average exchange rates. The assets and
liabilities are translated at exchange rates ruling at the balance sheet date. Foreign exchange differences arising are classified
as equity and transferred to the Group’s translation reserve. Translation reserves are recognised as income or as expense in the
period in which the related overseas subsidiary is disposed of.
In order to hedge its exposure to certain foreign currency exchange risks, the Group uses derivative financial instruments
(forward contracts) to hedge significant exposure on foreign exchange transactions. This is explained in the Financial
instruments accounting policy. 1. Significant Accounting Policies continued
(e) Financial instruments
Financial assets and liabilities are recognised on the Group’s balance sheet when the Group becomes a party to the contractual
provisions of the instrument.
The Company’s financial assets comprise trade and other receivables and cash and cash equivalents. Trade and other
receivables are classified as loans and receivables and are measured subsequent to initial recognition at amortised cost using
the effective interest method, less provision for any impairment. Any change in their value through impairment or reversal of
impairment is recognised in the Income Statement. 
No financial assets are classified as fair value through profit and loss or as held to maturity or available for sale. 
Impairment of financial assets
All financial assets are assessed for indicators of impairment at each balance sheet date. Financial assets are impaired where
there is evidence that a loss event has occurred and that estimated future cash flows of the financial asset have been impacted.
For certain categories of financial asset, such as trade receivables, assets are to be assessed for impairment on a collective
basis. Objective evidence of impairment for a portfolio of receivables could include the Group’s past experience of collecting
payments, an increase in the number of delayed payments in the portfolio and the average credit period, as well as observed
changes in the national or local economic conditions that correlate with default on receivables. 
Financial liabilities
Financial liabilities, which include bank loans, overdrafts, lease finance and trade and other payables, are measured initially at
fair value net of transaction costs under the effective interest method and thereafter at amortised cost. Finance charges are
accounted for on an accruals basis to the Income Statement using the effective interest method. 
Derivative financial instruments
The Group has not used derivative financial instruments in either financial year to hedge its exposure to interest rate or currency
risk, but the Group does monitor its exposure and will adopt derivative financial instruments where deemed appropriate and
approved by the Board.
(f) Intangible assets
(i) Goodwill
In respect of acquisitions since 1 April 2004, goodwill arising on consolidation represents the excess of cost of acquisition
over the Group’s interest in the fair value of the net identifiable assets and liabilities of the acquired entity at the date of
acquisition. For acquisitions prior to this date, goodwill is included on the basis of its deemed cost. Goodwill is recognised
as an asset and assessed for impairment at least annually. Impairment is assessed by comparing the goodwill with the
discounted cash flows projected for the acquired cash generating unit, using a pre-tax discount rate that management
estimate to be the risk adjusted average cost of capital for the Parent Company.
(ii) Research and development
Research expenditure is written off as incurred. Expenditure on a development project will be written off as incurred unless
and until:
(i) the project is identified as being:
(a) for a new or substantially improved product or process;
(b) technically feasible; and
(c) commercially feasible, and probable that recovery will take place
and (ii) measurable costs can be attributed to the asset and adequate resources are available to complete the project.
For a project meeting these criteria, subsequent costs will be capitalised and amortised from the date the product or
process is available for use on a straight-line basis over the product’s estimated life.
(iii) Acquired intangible assets
Intangible assets that are acquired as a result of a business combination are recorded at fair value at acquisition date,
provided they can be separately and reliably measured. The assets are amortised on a straight-line basis over their
expected useful lives.
37 www.intelek.plc.uk Notes to the Financial Statements continued
for the year ended 31 March 2008
38
Intelek 
Report and Accounts 2008
1. Significant Accounting Policies continued
(g) Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and any impairment loss. Cost comprises the
purchase price and costs directly incurred in bringing the asset into use. Where assets are in the course of construction at the
balance sheet date, they are classified separately and not depreciated.
Depreciation is charged so as to write off the cost of assets to their residual value over their expected useful lives using the
straight-line method. The principal rates are as follows:
Freehold land Nil
Leasehold properties Over the lease period
Plant and equipment 7%–33%
(h) Leases
Leasing agreements that transfer substantially all the risks and rewards of ownership to the Group are classified as Finance
Leases. Assets financed by a Finance Lease are accounted for as if they had been purchased outright, with the corresponding
liability to the leasing Company included as an obligation. The rentals payable are apportioned between interest, which is
charged to the Income Statement, and capital, which reduces the outstanding obligation. All other leases are classified as
Operating Leases and lease rentals are charged to the Income Statement on a straight-line basis over the term of the lease.
Depreciation of finance leased assets is consistent with that for owned assets unless there is no reasonable certainty that the
Group will obtain ownership by the end of the lease term, in which case depreciation is straight-line over the period of the lease.
Interest is charged to the Income Statement so as to produce a constant periodic rate of interest on the remaining balance of
the liability. Benefits received and receivable as an incentive to enter into an Operating Lease are also spread on a straight-line
basis over the lease term.
(i) Impairment of non-current assets
All non-current assets are assessed annually for indications of impairment. Where impairment is likely, the fair value is measured
and any impairment loss is charged to the Income Statement.
(j) Inventories
Inventories are valued on a first-in, first-out basis at the lower of cost and estimated net realisable value, due allowance being
made for obsolete and slow-moving items. Cost includes the relevant proportion of production overhead assuming normal
levels of activity. Net realisable value is the estimated selling price less the estimated costs of completion and selling expenses.
(k) Employee benefits
(i) Defined contribution plans
Obligations for contributions to defined contribution pension plans are recognised as an expense in the Income Statement
as and when they are due.
(ii) Defined benefit plan
The Group’s net obligation in respect of its defined benefit pension plan is calculated by estimating the amount of future
benefit payable to members, discounted to present value, and deducting the fair value of the plan assets. The calculation is
performed by a qualified actuary, with liabilities assessed using the projected unit credit method and discounted using the
market yield on high quality corporate bonds that are nearest to matching the maturity of the scheme. Actuarial gains and
losses are included in the Statement of Recognised Income and Expense. Current and past service costs, curtailments and
settlements are recognised within operating profit. Expected return on scheme assets and interest on obligations are
recognised as a component of financing costs.
(iii) Share-based payment transactions
Share-based incentive arrangements are provided to employees under the Group’s share option and other share award
schemes. Share-based arrangements put in place since 7 November 2002 are valued at the date of grant or award and
charged to operating profit over the performance or vesting period of the scheme. Options are valued using an appropriate
pricing model (Black-Scholes). The annual charge is modified to take account of shares forfeited by employees who leave
during the performance or vesting period and where it becomes unlikely that the option or shares will vest. 1. Significant Accounting Policies continued
(l) Provisions
A provision is recognised in the Balance Sheet when the Group has a legal or constructive obligation as a result of a past event.
The provisions are not discounted.
(i) Warranty
Provision for warranty is made only for those customer claims in respect of which the Group expects to incur liability.
(ii) Restructuring
A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the
restructuring either has commenced or has been announced publicly. Future operating costs are not provided for.
(iii) Onerous contracts
A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are
lower than the unavoidable cost of meeting its obligations under the contract.
(m) Revenue recognition
(i) Sales represent the invoiced value, excluding value added tax, of goods and services, where the significant risks and
rewards of ownership have been transferred to the buyer. No revenue is recognised if there are significant uncertainties
regarding recovery of the consideration due or the possible return of goods.
(ii) Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate
applicable.
(n) Government grants
Government grants are recognised in the Balance Sheet initially as deferred income. Grants in respect of assets are transferred
to the Income Statement as other operating income over the estimated useful life of the asset concerned. Grants to
compensate for expenses are transferred to the Income Statement in the same periods as the expenses are incurred.
(o) Taxation
The tax charge for the year includes the charge for tax currently payable and deferred taxation. The current tax charge
represents the estimated amount due that arises from the operations of the Group in the financial year and after making
adjustments in respect of prior years.
Deferred tax is recognised in respect of all differences between the carrying amount of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit, except where the temporary difference
arises from goodwill or from the initial recognition of assets or liabilities that affect neither accounting nor taxable profit.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which
the asset can be utilised.
Deferred tax is measured at the tax rates that are enacted or substantially enacted at the Balance Sheet date.
(p) Share capital
Ordinary shares are classified as equity. When the Company purchases its own shares, the consideration is deducted from
shareholders’ equity until the shares are either cancelled or reissued.
(q) Dividend distribution
The annual final dividend is not provided for until approved by shareholders, whilst interim dividends are charged in the period
when they are paid.
(r) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and deposits and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities.
(s) Exceptional items
Exceptional items are material items which individually or, if of a similar type, in aggregate, need to be disclosed by virtue of
their size or incidence because of their relevance to understanding the entity’s financial performance.
39 www.intelek.plc.uk Notes to the Financial Statements continued
for the year ended 31 March 2008
40
Intelek 
Report and Accounts 2008
2. Critical accounting judgements and key sources of estimation uncertainty
The Group makes estimates and assumptions about the future. The resulting accounting estimates seldom equal the related actual
results. The estimates and assumptions that have a material risk to the carrying value of assets and liabilities within the next financial
year are discussed below:
Defined benefit scheme
Details of the Group’s defined benefit pension scheme are set out in notes 1 (k)(ii) and 5 of the financial statements. The scheme has
been accounted for in accordance with IAS 19 “Employee benefits”. The main area of judgement is the valuation of the pension
scheme liabilities, which represent the net present value of projected future pension payments. These calculations are performed by
the scheme actuary, with whom the Directors have agreed the underlying assumptions to be applied. The key assumptions are rates
of increase in pension benefits, mortality rates, inflation and the discount rate applied to produce the net present value. The discount
rate is derived from market rates on AA corporate bonds at the balance sheet date. Sensitivities applied to the key assumptions and
their impact on the scheme liabilities are set out in note 5 of these financial statements.
Goodwill
Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which goodwill
has been allocated. The value in use calculation requires the estimation of future cash flows expected to arise from the cash-
generating unit and a suitable discount rate in order to calculate present value. Details are set out in note 12.
Recoverability of internally generated asset — research and development
During the year, management have considered the recoverability of the development expenditure of £0.4 million on its balance sheet.
The projects continue to progress satisfactorily and customer reaction has confirmed management’s estimates of anticipated
revenues from the projects. Management are confident that the carrying amount of the asset will be recoverable.
Deferred tax
Management consider it reasonable to recognise deferred tax assets attributable to the defined benefit pension scheme deficit,
unused tax losses and accelerated capital allowances based on future profit projections.
Financial Risk Management
Principal risks and uncertainties facing the Group are set out in the Directors’ Report on pages 21 and 22 of these financial
statements.
3. Business and geographical segments
For management purposes, the Group is currently organised into three operating divisions, Satellite communications, Microwave
components and manufacturing services, and Aerostructures. These divisions are the basis on which the Group reports its primary
segment information.
2008 2007
Sales Profit Margin Sales Profit Margin
Business segment £000 £000 % £000 £000 %
Satellite communications Paradise Datacom 15,288 3,172 21% 16,941 2,953 17%
Microwave components and
manufacturing services Labtech Microwave 7,899 154 2% 8,311 (479) -6%
Aerostructures CML 12,878 1,778 14% 11,704 1,582 14%
Eliminate intra-segment trading (103) —— (116) ——
Continuing operations 35,962 5,104 14% 36,840 4,056 11%
Central costs (1,286) (1,151)
Net finance costs (509) (565)
Underlying profit before tax 35,962 3,309 9% 36,840 2,340 6%
Pension curtailment and settlement gains — 3,992
Exceptional operating costs: 
Microwave components and
manufacturing services — (531)
Other exceptional — Central (see Note 7) — (179)
Taxation (953) (1,789)
Total for the period 35,962 2,356 36,840 3,833 
Intra-segment sales are charged at prevailing market rates.
Assets Liabilities Net Assets Liabilities Net
£000 £000 £000 £000 £000 £000
Satellite communications 20,047 (4,723) 15,324 20,847 (6,522) 14,325 
Microwave components and manufacturing services 5,863 (4,500) 1,363 5,987 (4,503) 1,484 
Aerostructures 8,064 (4,654) 3,410 6,971 (4,161) 2,810 
Continuing operations 33,974 (13,877) 20,097 33,805 (15,186) 18,619 
Centre and consolidation adjustments (2,189) 1,809 (380) (2,106) 1,835 (271) 
Defined benefit pension obligation 1,459 (5,212) (3,753) 1,479 (5,283) (3,804)
Total for the period 33,244 (17,280) (15,964) 33,178 (18,634) 14,544 41
3. Business and geographical segments continued
2008 Capital expenditure Funded by Other
Finance non-cash
Tangible Intangible Lease Depreciation Impairment expenses
£000 £000 £000 £000 £000 £000
Satellite communications 210 204 — (401) ——
Microwave components and
manufacturing services 150 — (100) (496) ——
Aerostructures 597 — (453) (382) —2
Continuing operations 957 204 (553) (1,279) —2
Centre —— — (11) —5
Pension finance cost —— —— — (59)
Total for the period 957 204 (553) (1,290) — (52)
2007 Capital expenditure Funded by Other
Finance non-cash
Tangible Intangible Lease Depreciation Impairment expenses
£000 £000 £000 £000 £000 £000
Satellite communications 215 26 — (561) — (24)
Microwave components and
manufacturing services 407 — (433) (508) (225) —
Aerostructures 830 — (738) (355) —2
Continuing operations 1,452 26 (1,171) (1,424) (225) (22)
Centre 3—— (11) ——
Pension finance cost —— —— — (192)
Total for the period 1,455 26 (1,171) (1,435) (225) (214)
Geographical segments
The Group’s operations are located in the United Kingdom, with the exception of Paradise Datacom LLC, which is registered in 
the USA.
Sales Total assets Capital expenditure
2008 2007 2008 2007 2008 2007
£000 £000 £000 £000 £000 £000
UK 16,507 16,238 26,539 26,210 776 1,316 
Rest of Europe 6,486 6,747 — — — —
North America 6,159 6,502 6,696 6,968 385 165 
Rest of World 6,810 7,353 — — — —
Total for the period 35,962 36,840 33,244 33,178 1,161 1,481 
The sales analysis in the above table is based on the location of the customer. The analysis of assets and capital expenditure is
based on the location of the operation.
www.intelek.plc.uk Notes to the Financial Statements continued
for the year ended 31 March 2008
42
Intelek 
Report and Accounts 2008
4. Interest
2008 2007
Interest received £000 £000
Bank deposit interest 27 46
Interest paid
Bank loans and overdrafts (341) (269)
Finance leases (118) (114)
Amortisation of loan arrangement fees (18) (36)
Total (477) (419)
5. Pension commitments
The Group operates a defined benefit pension scheme that was closed to new members in January 2000 and ceased further
service accrual for employees in September 2002. The scheme has a net deficit, for which the Group has agreed a Schedule of
Contributions with the Trustee. This requires payment of £820,000 a year (2007: £1.3 million) to 2016, plus scheme expenses. In
addition, the Group has arranged a £2.4 million guarantee in favour of the scheme, based on certain of the Group’s assets. The
scheme owns the 999 year lease of the premises occupied by Labtech Ltd, a Group subsidiary, at Presteigne, Powys. The premises
are let under a 24 year lease expiring in 2018 at a current commercial rental of £75,750 per annum.
In 2006/07, the Group undertook a project that involved an invitation to certain of the non-pensioner members to transfer out of the
scheme. The offer included a supplementary sum to be paid by the Company. The project was largely completed during 2006/07.
However, a small number of transactions were completed in 2007/08. The scheme actuary has evaluated the effect of these
transactions as a net curtailment gain of £72,000. Against this the Company has incurred expenses and supplementary sums of
£59,000, leaving a net credit to the Income Statement of £13,000. £23,000 remains to be paid over to a few of the members
pending finalisation of the procedures for transfer.
The defined benefit scheme was valued by the scheme actuary at 31 March 2008. The key assumptions applied were:
At 31 March At 31 March
2008 2007
% %
Rate of increase in pensions in payment 3.50 3.20 
Discount rate 6.50 5.45 
Inflation 3.50 3.20
Expected return on plan assets (being the weighted average return for the scheme assets at
31 March less administration expenses) 6.50 6.80
The Discount rate is used to compute the present value of scheme liabilities. Under IAS 19, this is set at the yield on high quality (AA)
corporate bonds. In view of the current volatility on yields, the Directors have taken a prudent approach, adopting a rate between
AAA (6.0%) and AA (6.9%). If the AA rate were to be used, the liabilities and the net deficit would be £1.02 million lower than
reported.
Mortality:
On actuarial advice, the valuation used the following mortality assumptions:
2008 2007
Current pensioners PA92 (2010) PA92 (2010)
Future pensioners — pre-retirement PA92 (2010) PA92 (2010)
— post-retirement PA92 (2020) PA92 (2010)
PA92 is a mortality table produced by the Institute and Faculty of Actuaries. The table assumes improvements in life expectancy at
rates seen in the late twentieth century through to 2010, or 2020, as stated.
The market value of the assets and obligations of the defined benefit scheme, and the expected rates of return, are as follows:
Long-term rate
of return expected
Value at 31 March at 31 March
2008 2007 2008 2007
£000 £000 % %
Equities 10,290 12,803 8.00 7.50
Freehold property 700 700 9.00 9.00
Property fund 702 836 8.00 6.50
Government Bonds 1 1 4.60 5.00
Corporate Bonds 1,947 504 6.50 5.45
Cash 240 572 5.25 5.00
Fair value of assets 13,880 15,416
Present value of scheme obligations (19,092) (20,699)
Actuarial deficit (5,212) (5,283)
Deferred tax 1,459 1,479
Actuarial deficit after deferred tax (3,753) (3,804) 5. Pension commitments continued
The sensitivities regarding the principal assumptions used to measure the scheme liabilities are set out below:
Assumption Change in assumption Impact on scheme liabilities
Discount rate Decrease by 0.5% Increase by £1.4 million
Rate of inflation Increase by 0.5% Increase by £0.9 million
Rate of mortality Increase by 1 year Increase by £0.6 million
The Group’s policy is to recognise all actuarial gains and losses immediately. Consequently, there are no unrecognised gains or
losses. The cumulative amount recognised since 1 April 2004 is a loss of £4,169,000.
2008 2007
£000 £000
Movement in scheme obligations during the year:
As at 1 April (20,699) (27,992)
Interest (1,101) (1,284)
Curtailment and settlement gain 72 6,785
Distributions 1,108 1,736 
Actuarial gains and losses 1,528 56
As at 31 March (19,092) (20,699)
Movement in scheme assets during the year:
As at 1 April 15,416 14,944 
Distributions (1,108) (1,736)
Contributions 931 1,387 
Expected return on assets 1,042 1,092 
Actual return (loss £(1,359,000) (2007: profit £821,000)) less expected return on assets (2,401) (271) 
As at 31 March 13,880 15,416 
The amounts reflected in the Group’s Income Statement are as follows:
2008 2007
£000 £000
Operating profit
Curtailment gain recognised in Administration expenses 72 6,785
Total 72 6,785
Net finance cost
Expected return on pension scheme assets 1,042 1,092 
Interest on pension scheme obligations (1,101) (1,284)
Total (59) (192)
The actuarial gains and losses are recognised net of tax in the Statement of Recognised Income and Expense:
Actual return less expected return on scheme assets (2,401) (271) 
Actuarial gains and losses arising on scheme obligations 1,528 56
(873) (215)
Less: deferred tax thereon 244 60 
Actuarial gains and losses (629) (155)
The history of experience gains and losses is as follows: 2008 2007 2006 2005 2004
£000 £000 £000 £000 £000
Fair value of assets 13,880 15,416 14,944 12,107 10,447
Present value of scheme obligations (19,092) (20,699) (27,992) (25,025) (22,882)
Deficit (5,212) (5,283) (13,048) (12,918) (12,435)
Difference between the expected and actual return 
on scheme assets:
Amount (£000) (2,401) (271) 1,886 (73) 1,108
Percentage of scheme assets -17% -2% 13% -1% 11%
Experience gains and losses on scheme liabilities:
Amount (£000) 1,528 56 (2,829) (2,065) (314)
Percentage of present value of the scheme obligations 8% 0% -10% -3% -1%
Cumulative actuarial gains and losses since 1 April 2004 are £4,169,000 (2007: £3,296,000).
Defined contribution schemes
The Group also operates defined contribution schemes for all qualifying employees. The assets of the schemes are held separately
from those of the Group. In 2008, £415,000 was expensed (2007: £404,000), representing contributions payable to these schemes
by the Group at rates specified in the scheme rules.
43 www.intelek.plc.uk Notes to the Financial Statements continued
for the year ended 31 March 2008
44
Intelek 
Report and Accounts 2008
6. Analysis of profit before taxation
2008 2007
The profit before taxation is stated after charging: £000 £000
Realised foreign exchange losses 4 40
Depreciation of tangible assets 1,133 1,287 
Impairment of tangible assets — 225
Research and development expenses 1,978 2,075
Amortisation of capitalised development costs (included in Research and development expenses) 157 148 
Cost of inventories recognised as an expense 24,579 24,121
Impairment of trade receivables 34 13
Auditors’ remuneration (see note below) 98 191
Staff costs (see note 8) 12,493 13,042
Operating lease rentals: plant hire 128 232
property 715 696
Loss on sale of fixed assets 1 25 
and after crediting:
Deferred income from government grants 7 7 
Net gain on sale of fixed assets 11 4
Fees payable to the Company’s auditors comprise:
Services to the Company and its subsidiaries:
Audit of the financial statements of the Group and subsidiaries 54 54
Audit of the financial statements of the Parent Company 5 5
Other services pursuant to legislation — regulatory reporting 1 1 
Other services relating to taxation — compliance 20 56 
— advisory 18 75 
98 191
Services to the Intelek pension scheme for audit of its financial statements 6 5 
Total fees 104 196 
7. Reconciliations between profit and underlying profit
2008 2007
Note £000 £000
Operating profit 3,818 6,187 
Less:
Gain arising on transfers from the defined benefit pension scheme (a) — 3,724
Curtailment gain on delinking the final salary for active members of
the defined benefit pension scheme (a) — 268
Asset impairment and restructuring at Labtech (b) — (531)
Holding Company restructuring and other exceptional costs (c) — (179)
— 3,282
Underlying operating profit 3,818 2,905 
Profit before taxation 3,309 5,622 
Adjustments to operating profit per above — (3,282)
Underlying profit before taxation 3,309 2,340 
Profit for the year 2,356 3,833 
Adjustments to profit before taxation per above — (3,282)
Tax effect of adjustments to operating profit — 1,182
Underlying profit for the year 2,356 1,733 
The adjusting items in 2007 are primarily in respect of:
(a) Gains arising on transfers out of the defined benefit pension scheme (see Note 5), and a curtailment gain on delinking the final
salary of members as at 1 July 2006.
(b) Restructuring of Labtech Microwave towards a lower volume, more complex process facility, requiring fewer resources.
(c) Changes to the Group structure and transfer of the Company’s Listing to AIM. 8. Employees
2008 2007
No. No.
The average monthly number of Group employees, including executive Directors, was:
Production 343 348 
Administration and sales 48 57 
391 405 
Costs in respect of these employees were: £000 £000
Wages and salaries 11,046 11,561 
Social security costs 1,032 1,077 
Other pension costs — defined contribution scheme (see note 5) 415 404 
12,493 13,042 
Directors’ emoluments, pension arrangements and share options are disclosed in the Remuneration Report on page 30, details of
which form part of these financial statements.
9. Taxation
2008 2007
£000 £000
Continuing operations
Overseas Tax
Current tax on income for the year (486) (670)
Adjustment in respect of prior years 69 139 
Total (417) (531) 
Current taxation (417) (531) 
Deferred taxation (536) (1,258)
Total taxation (953) (1,789)
The differences between the total taxation for continuing operations shown above and the amount 
calculated by applying the standard rate of UK corporation tax to the profit before tax is as follows:
Profit on ordinary activities before taxation 3,309 5,622 
Theoretical tax at UK corporation tax rate 30% (2007: 30%) (993) (1,687)
Effects of:
different tax rates (63) (43)
adjustments in respect of prior years 77 (117) 
research and development tax credit 17 49 
export/manufacturing tax credit 23 107 
other (expenditure) that is not tax deductible/income that is not taxable (14) (98)
Actual taxation (953) (1,789)
Taxation on items charged to equity
Deferred tax credit on actuarial gains and losses on defined benefit plans (Continuing operations) 244 60
45 www.intelek.plc.uk Notes to the Financial Statements continued
for the year ended 31 March 2008
46
Intelek 
Report and Accounts 2008
10. Earnings per Share
Basic earnings per share (EPS) were calculated based on the profit for the year divided by the weighted average number of ordinary
shares outstanding during the period, excluding those held by the Employee Share Trust and those held by Directors that remain
subject to performance conditions. These excluded shares are accounted for as an investment in own shares (see note 26). The total
for 2008 was 84,833,409 (2007: 84,586,012). Diluted EPS is calculated by adjusting the number of shares used in the basic EPS
calculation to assume conversion of all dilutive potential ordinary shares resulting from outstanding employee share plans. There were
340,500 exercisable share options in existence at the year end (2007: 267,500) the exercise price for which is below the average fair
value of 16.5p per share of the ordinary shares in issue during the year. These create a dilution in shares of 232,167 (2007: 53,092).
In order to provide a trend measure of underlying performance, the Board also monitors underlying EPS, computed as follows:
Earnings EPS
2008 2007 2008 2007
£000 £000 p p
Profit for the year 2,356 3,833 2.78 4.53
Less: Exceptional items (see note 7) — (3,282) — (3.88)
Tax on these items — 1,182 — 1.40
Underlying 2,356 1,733 2.78 2.05
Effective tax rate on underlying profit 29% 26%
11. Dividends
The following dividend payments have been made on the Ordinary 5p shares in issue:
2008 2007
Rate Date Shares in issue £000 £000
Final 2005/06 0.24p 27 September 2006 86,076,072 — 207
Interim 2006/07 0.13p 24 January 2007 87,376,072 — 114
Final 2006/07 0.26p 26 September 2007 87,376,072 227 —
Interim 2007/08 0.15p 23 January 2008 87,376,072 131 —
Less: dividends paid on shares in the employee share trust (3) (6)
355 315
At 31 March 2008, the 2007/08 final dividend had not been approved by Shareholders and as such was not included as a liability. The
dividend is expected to be £262,000, 0.30 pence per share, and to be paid on 24 September 2008 to shareholders on the register at 
29 August 2008.
12. Goodwill
2008 2007
£000 £000
Cost
At 1 April 15,696 15,939
Exchange adjustment (29) (243)
At 31 March 15,667 15,696 
Impairment
At 1 April (2,305) (2,331)
Exchange adjustment 4 26
At 31 March (2,301) (2,305)
Net book value
At 31 March 13,366 13,391
The goodwill relates entirely to the Satellite communications business segment, a cash generating unit. No impairment has been
recognised in either 2007 or 2008. The recoverable amount of the business segment is evaluated based on its value in use.
Impairment
During the year, the goodwill was tested for impairment against cash flow projections for the unit discounted at management’s
estimate of the risk adjusted cost of capital. The cash flows were taken from the unit’s business plan for 2009 to 2011, extended for
seven years thereafter at the projected market growth rate of 2.5%. The pre-tax discount rate applied was 11%. These assumptions
reflect management’s past experience and are consistent with external sources of information. After sensitivity analysis of the
results, in particular for presumed growth rates, it was concluded that no impairment was required. 13. Intangible assets
2008 2007
Development £000 £000
Cost
At 1 April 508 489
Exchange adjustment (1) (7)
Additions 204 26
At 31 March 711 508
Amortisation
At 1 April (171) (23)
Charge for the year (157) (148)
At 31 March (328) (171)
Net book value
At 31 March 383 337
The additions relate entirely to assets acquired from third parties. The useful economic life of the intangible assets is three years.
Amortisation is charged to Research and Development expenses in the Income Statement.
14. Property, plant and equipment
Freehold Leasehold Plant and
properties properties Equipment Total
£000 £000 £000 £000
Cost at 1 April 2006 12 958 16,627 17,597 
Exchange adjustment — — (153) (153) 
Additions — 13 1,442 1,455 
Disposals —— (202) (202)
Cost at 31 March 2007 12 971 17,714 18,697
Exchange adjustment —— (21) (21)
Additions — 12 945 957
Disposals —— (71) (71)
Cost at 31 March 2008 12 983 18,567 19,562
Depreciation at 1 April 2006 (1) (322) (11,098) (11,421)
Exchange adjustment —— 111 111
Charge for the year — (60) (1,227) (1,287)
Impairment loss —— (225) (225)
Disposals —— 176 176 
Depreciation at 31 March 2007 (1) (382) (12,263) (12,646)
Exchange adjustment —— 15 15
Charge for the year — (64) (1,069) (1,133)
Disposals —— 66 66
Depreciation at 31 March 2008 (1) (446) (13,251) (13,698)
Carrying Amount 31 March 2008 11 537 5,316 5,864
31 March 2007 11 589 5,451 6,051 
The impairment loss on plant and equipment arose in connection with the restructuring of Labtech in 2007.
The carrying amount of plant and equipment includes £3,303,000 (2007: £3,260,000) in respect of assets held under finance leases,
the depreciation charge on which amounted to £508,000 (2007: £638,000). The carrying amount of leasehold properties includes
£221,000 (2007: £227,000) in respect of a long leasehold property and £316,000 (2007: £362,000) in respect of short leasehold
property.
At 31 March 2008, the Group had entered into contractual commitments for the acquisition of property, plant and equipment
amounting to £190,000 (2007: £187,000).
47 www.intelek.plc.uk Notes to the Financial Statements continued
for the year ended 31 March 2008
48
Intelek 
Report and Accounts 2008
15. Inventories
2008 2007
£000 £000
Raw materials and components 2,147 2,404 
Work in progress 1,394 1,338 
Finished goods 165 141 
3,706 3,883 
The above inventory has been pledged as security for the Group’s bank loans and overdrafts.
In the Directors’ opinion, the replacement cost of inventories does not differ materially from the stated amounts.
16. Trade and other receivables
2008 2007
£000 £000
Trade receivables Gross 5,834 5,928 
Provision for impairment (97) (71)
Other receivables 61 273 
Prepayments and accrued income 494 364 
6,292 6,494 
The Group has no significant concentration of credit risk, with trade receivables spread over a large number of customers and
representing an average of 46 days of sales (2007: 47 days). 
After considering individual amounts due and the probability of recovery, provision for impairment has been taken or released as set
out below:
2008 2007
P Pr ro ov vi is si io on n f fo or r i im mp pa ai ir rm me en nt t £000 £000
Balance brought forward at 1 April (71) (75)
Impairment loss recognised (34) (13)
Amounts written off as uncollectable 8 17
Amounts recovered — —
Balance carried forward (97) (71)
Included in the provision for impairment are individually impaired receivables, the ageing for which is:
2008 2007
£000 £000
Up to 90 days (77) (71)
90–120 days — —
120+ days (20) —
(97) (71)
Included in the Group’s trade receivables are the following amounts that are past due at the reporting date, but for which the Group
has not provided:
2008 2007
P Pe er ri io od d o ov ve er rd du ue e £000 £000
Up to 90 days 856 588
90–120 days 6 58
120+ days 142 85
Total 1,004 731
The Directors believe that there is no further impairment provision required and that the carrying amounts of trade and other
receivables approximate to their fair values. The Group reserves its right to charge interest on overdue receivables, with each case
being dependent on its commercial circumstances. 17. Current tax assets/(liabilities)
2008 2007
£000 £000
Overseas taxation 112 (469) 
18. Cash and cash equivalents
Cash and cash equivalents comprise cash held by the Group and short-term bank deposits with maturity of three months or less.
The carrying value of these assets approximates to their fair value. The credit risk on liquid funds is limited because counterparties
are banks with high credit ratings assigned by international credit-rating agencies.
2008 2007
£000 £000
Cash 206 404 
Cash held on deposit 1,039 139 
1,245 543 
19. Deferred taxation
2008 2007
£000 £000
Provisions at 1 April 2,113 3,262
Exchange adjustment 5 49
Income Statement (536) (1,258)
Deferred tax on defined benefit obligation recognised in equity 244 60 
Provisions at 31 March 1,826 2,113 
The deferred taxation charge to the Income Statement comprises:
2008 2007
£000 £000
Defined benefit pension (264) (2,422)
Capital allowances 170 279 
Other timing differences (246) 633
Losses (196) 252
(536) (1,258)
The closing balances for deferred taxation are analysed into three Balance Sheet categories:
2008 2007
Defined Defined
benefit Other benefit Other
pension assets Liabilities Net pension assets Liabilities Net
£000 £000 £000 £000 £000 £000 £000 £000
Defined benefit pension 1,459 —— 1,459 1,479 —— 1,479
Capital allowances — 275 (173) 102 — 54 (124) (70)
Other timing differences — 486 (277) 209 — 694 (242) 452
Losses — 56 — 56 — 252 — 252
1,459 817 (450) 1,826 1,479 1,000 (366) 2,113
49 www.intelek.plc.uk Notes to the Financial Statements continued
for the year ended 31 March 2008
50
Intelek 
Report and Accounts 2008
20. Deferred government grants
2008 2007
£000 £000
At 1 April (86) (93)
Income Statement 8 7
At 31 March (78) (86)
21. Trade and other payables
2008 2007
£000 £000
Trade payables (2,898) (3,107)
Other taxes and social security (616) (643)
Other payables (414) (528)
Accruals  (2,453) (2,218)
(6,381) (6,496)
22. Provisions and other liabilities
2008 2007
Restructuring Warranty Total Restructuring Warranty Total
£000 £000 £000 £000 £000 £000
At 1 April (251) (14) (265) — (73) (73)
Exchange adjustment —— — —3 3
Income Statement — (2) (2) (251) — (251)
Utilised 217 — 217 — 56 56
At 31 March (34) (16) (50) (251) (14) (265)
The warranty and restructuring provisions are not discounted and are estimated to be fully utilised within 12 months.
23. Share capital
2008 2007
£000 £000
Authorised:
110,000,000 (2007: 110,000,000) Ordinary 5p shares 5,500 5,500 
Allotted and fully paid:
87,376,072 (2007: 87,376,072) Ordinary 5p shares 4,369 4,369 
Share options
Details of the Group share option schemes are set out in the Remuneration Report on page 31. At 31 March 2008 there were
outstanding options under the Executive Scheme in respect of 1,205,000 ordinary shares, exercisable between 2008 and 2013 at
prices varying between 10.5p and 36.0p per share.
The movement in the year in respect of share options is analysed as follows:
Exercise
Scheme Date of grant 2008 Exercised Lapsed 2007 price (p) Expiry
1995 approved 12/01/98 — — (62,500) 62,500 16.0 13/01/08
20/08/99 55,000 —— 55,000 20.0 21/08/09
28/01/00 7,500 — (7,500) 15,000 33.0 29/01/10
27/07/00 7,500 —— 7,500 35.0 28/07/10
1995 unapproved 27/07/00 — — (150,000) 150,000 35.0 28/07/07
28/07/00 — — (250,000) 250,000 36.0 29/07/07
2000 approved 20/12/00 50,000 —— 50,000 35.5 19/12/10
10/08/01 109,500 — (7,500) 117,000 34.0 09/08/11
08/08/02 73,000 —— 73,000 14.0 07/08/12
08/01/03 167,500 —— 167,500 10.5 07/01/13
2000 unapproved 10/08/01 135,000 —— 135,000 34.0 09/08/11
08/08/02 500,000 —— 500,000 19.0 11/02/12
08/01/03 100,000 —— 100,000 10.5 07/01/13
1,205,000 — (477,500) 1,682,500 
Chief Executive option 19/09/00 — (350,000) (350,000) 700,000 17.0 20/09/07
1,205,000 (350,000) (827,500) 2,382,500  24. Share-based payments
Share options
In accordance with IFRS 2 “Share-based payment”, the Group has appraised share options granted after 7 November 2002. The
only options applicable to date are those issued on 8 January 2003 at a price of 10.5p, expiring on 7 January 2013. The options
were issued conditional upon achieving growth in earnings per share at a rate in excess of 2% a year above the retail price index
over any consecutive three years in the ten year period from 31 March 2002. This condition was met following announcement of the
results for the year to 31 March 2006. To date, none of the options has been exercised. The details are as follows:
2008 2007
Weighted Weighted
average average
No. price No. price
Outstanding at 1 April 267,500 10.5p 327,500 10.5p
Options forfeited — 10.5p (60,000) 10.5p
Outstanding at 31 March 267,500 10.5p 267,500 10.5p
Exercisable at 31 March 267,500 10.5p 267,500 10.5p
For these options, the fair value has been assessed, applying the Black-Scholes option pricing model. The model assumed volatility
of 39.1%, expected dividend yield of 2.8%, risk-free interest rate of 4.2%. On this basis, the fair value of the options at grant date
was 3.8p. No accrual has been taken to the Income Statement as the amounts are not material. At 31 March 2008, a charge of
£10,000 would have been accrued (2007: £10,000).
Long-Term Incentive Plan
In October 2006, the Group introduced a Long-Term Incentive Plan (LTIP) under which shares are issued by Intelek’s ESOP trust to
selected senior managers at grant date, subject to compulsory sale back to the trust at a nominal price to the extent that
performance conditions are not met. The awards are split equally into two measurement periods, 3 years and 5 years, and again into
two categories of performance condition, EPS and Share Price. For the EPS tranches, actual adjusted EPS at the end of the
measurement period is compared with the target EPS. For the Share Price tranches, the growth in share price is compared with the
growth in the techmark 100 index over the measurement period. The targets are set by the Remuneration Committee. In all cases, if
less than 80% of the target is met, none of the shares vest, if 80%, 25% vest, if 120%, 100% vest, and pro rata between 80% and
120%. During the measurement period, the senior managers own the voting rights attaching to the shares and receive dividends.
However, to the extent that the shares do not vest, the dividends, less tax, have to be paid over to the Trust.
The first award under the LTIP was made in October 2006 to Mr Ian Brodie and Mr Kevin Edwards, details of which are set out in the
Remuneration Report. In total, 1,750,000 shares were issued at 12.5p a share. Under IFRS 2, the cost of this benefit is required to be
estimated and taken over the measurement period. As the shares have already been issued, the price is known and has been
applied to the projected number of shares that will vest. For the EPS tranches, the number of shares has been computed based on
management projections of EPS. For the Share Price tranches, the number of shares has been computed assuming that (a) the
share price will grow in line with EPS, modified for the market’s perception of risk, and (b) the techmark 100 index will grow
consistent with the 3-year period 31.3.04 to 31.3.07. In 2008, a provision of £43,000 has been charged to the Income Statement
(2007: £23,000), increasing the provision to £66,000 (2007: £23,000).
www.intelek.plc.uk 51 Notes to the Financial Statements continued
for the year ended 31 March 2008
52
Intelek 
Report and Accounts 2008
25. Statement of changes in equity
Retained earnings
Share Accumu-
Share premium Own Other Hedging Translation lated
capital account shares reserves reserve reserve profits Net
£000 £000 £000 £000 £000 £000 £000 £000
At 1 April 2006 4,304 9,104 (326) 4,366 (100) 96 (6,054) 11,390 
Issue of shares 65 97 (162) —————
Cancellation of reserves 
(note b) — (9,201) — (955) —— 10,156 —
Exchange difference 
on hedging ———— 107 —— 107
Exchange difference on 
translation of 
overseas operation ————— (316) — (316)
Actuarial losses arising 
on defined benefit pension 
plan, net of deferred tax —————— (155) (155)
Dividends paid —————— (315) (315)
Transfer from profit and 
loss account —————— 3,833 3,833
At 31 March 2007 4,369 — (488) 3,411 7 (220) 7,465 14,544
Disposal of own shares
(see note 26) —— 59 ———— 59
Exchange difference 
on hedging ———— 24 —— 24
Exchange difference on 
translation of
overseas operation ———— — (35) — (35)
Actuarial losses arising 
on defined benefit pension 
plan, net of deferred tax—————— (629) (629)
Dividends paid —————— (355) (355)
Transfer from profit and 
loss account —————— 2,356 2,356
At 31 March 2008 4,369 — (429) 3,411 31 (255) 8,837 15,964
a. Other reserves include the Capital Redemption Reserve and a Merger Reserve created on acquisition in prior years. The
hedging and translation reserves represent, respectively, the accumulated net currency variations on hedging instruments, and
equity shareholders’ interest in overseas net assets.
b. Following approval by shareholders and the High Court, with appropriate safeguards for creditors, the Share Premium Reserve
and the Capital Redemption Reserve were cancelled. This took effect on 22 December 2006.
26. Own shares
Own shares represent the cost of shares in Intelek plc purchased in the market and held by the Intelek plc Employee Share
Ownership Plan (ESOP), and shares issued under the Executive LTIP but not yet vested.
The Intelek plc ESOP trust was established by a deed on 7 November 1991 made between the Company and EFG Reads Trustees
Limited of Jersey. The trust was established for the benefit of the bona fide employees or former employees of the Company and
other Group Companies (“the Beneficiaries”). The trust is a discretionary trust whose assets are shares in the Company and the
Trustees have full authority and power to distribute such shares as they deem fit to the Beneficiaries. In addition, the Trustees may
satisfy options granted by the Company to participants in one or more of the Group’s share option schemes should the Trustees in
their absolute discretion and with the agreement of the Company decide to do so.
Administration costs amount to £5,000 per annum. As of 31 March 2008, the Trust held 690,060 (2007: 1,040,060) Ordinary shares of
5p each in the capital of the Company. As of 31 March 2008, 1,205,000 (2007: 2,382,500) shares of the Company are under option to
the participants in the Group’s Share Option Schemes and the Trustees may by agreement with the Company use all or any of the
shares in the Trust to satisfy such options. During the year, 350,000 of the shares were distributed to Ian Brodie at 17p, under the terms of
the Chief Executive share option plan. In addition, the Trust held signed transfer documents in respect of a further 1,750,000 shares issued
under the Executive LTIP . These shares will be sold to the Trust for a nominal value to the extent that the LTIP performance conditions are
not satisfied. For accounting purposes, these shares are included as part of the investment in Own Shares until vesting under the LTIP . The
total investment in own shares is 2,440,060 (2.8% of the allotted share capital), the market value of which at 31 March 2008 was £341,608
(2007: £404,559), i.e. 14.0p per share (2007: 14.5p per share). Dividends on these shares have not been waived. 27. Cash generated from operations
2008 2007
£000 £000
Underlying operating profit 3,818 2,905 
Depreciation and amortisation 1,290 1,435 
Pension contribution paid towards deficit (931) (1,387)
Pension curtailment gain (net of expenses) (13) —
Deferred income (7) (7)
(Profit)/loss on disposal of tangible fixed assets (10) 20 
Decrease in inventories 139 137
Decrease in receivables 161 9
Increase in payables 32 20 
Net cash flow before restructuring 4,479 3,132 
Pension transfer project (190) (2,639)
Other exceptional items (188) (207)
Cash generated from continuing operations 4,101 286 
28. Reconciliation of net cash flow to movement in net debt
2008 2007
£000 £000
Net increase/(decrease) in cash and cash equivalents 1,157 (2,071)
Effect of foreign exchange rates 35 217
Repayment of finance leases 768 703 
Cash inflow from debt (144) 599
Changes in net debt resulting from cash flows 1,816 (552) 
New finance leases (554) (1,171)
Net movement in debt 1,262 (1,723)
Opening debt (5,126) (3,403)
Closing debt (3,864) (5,126)
2008 2007
Analysis of net debt: £000 £000
Cash at bank 1,245 543 
Bank overdrafts and loans (3,566) (3,912)
Finance leases (1,543) (1,757)
Total net debt (3,864) (5,126)
2008 2007
Reconciliation of cash and cash equivalents £000 £000
Cash and cash equivalents per balance sheet 1,245 543
Bank overdrafts included within ‘current liabilities — borrowings’ (1,053) (1,506)
Cash and cash equivalents per cash flow 192 (963)
www.intelek.plc.uk 53 Notes to the Financial Statements continued
for the year ended 31 March 2008
54
Intelek 
Report and Accounts 2008
29. Operating Lease Commitments
Commitments for future minimum lease payments under non-cancellable operating leases fall due as follows:
Total Total
Properties Plant 2008 Properties Plant 2007
£000 £000 £000 £000 £000 £000
Within one year 579 31 610 593 152 745
Between one and five years 2,150 61 2,211 2,289 53 2,342
After five years 2,865 — 2,865 3,309 — 3,309
5,594 92 5,686 6,191 205 6,396
30. Contingent Liabilities and Assets
The Company is guarantor for the lease of the property occupied by Pascall Electronics on the Isle of Wight. The lease expires in
2016 and is at a current rental of £273,000 per annum. As part of the disposal agreement for Pascall Electronics, the Company
secured full indemnity for this guarantee from both the purchaser and the purchaser’s ultimate holding company. The Directors
consider it unlikely that there will be a default that affects the Group under this guarantee. Even if there were to be a default, the
Group would expect to be able to re-let the property and mitigate much of the liability.
31. Borrowings
a) Summary
2008 2007
£000 £000
Bank loans (3,566) (3,912)
Finance leases (1,543) (1,757)
(5,109) (5,669)
Non-current liabilities (2,994) (2,999)
Current liabilities (2,115) (2,670)
(5,109) (5,669)
Bank overdraft and loans are fully secured on the assets of the Group.
b) Borrowing facilities
The Group has the following undrawn committed borrowing facilities:
2008 2007
£000 £000
Expiring in less than one year 1,391 663
Expiring in more than one year but not more than two years — —
In more than two years 2,696 3,276
4,087 3,939
c) Finance leases
2008 2007
Minimum Minimum
lease Present lease Present
payments value payments value
£000 £000 £000 £000
Within one year (677) (589) (793) (702)
One to five years (1,042) (954) (1,146) (1,055)
(1,719) (1,543) (1,939) (1,757)
Less future finance charges 176 182 
Present value of lease obligations (1,543) (1,757) 31. Borrowings continued
d) Interest
The weighted average interest rates paid were as follows:
2008 2007
% %
Bank loans 7.0 6.3
Finance leases 7.2 7.7
e) Principal features of the Group’s borrowings
The Group’s borrowing facilities are secured by a debenture over the Group’s assets and unlimited cross guarantees given by the
Company and certain subsidiary undertakings. The Group has a US$ denominated bank loan of £709,000 being repaid at £118,000
a quarter.  It will be fully repaid by September 2009. The interest rate on the loan is 1.50% above the bank’s base rate.
32. Financial Instruments
The Group’s financial instruments comprise borrowings, cash and cash equivalents and various items such as trade and other
receivables and trade payables that arise directly from its operations. The main purpose of these instruments is to raise finance for
operations. The Group has not entered into derivative transactions. The main risks arising from the Group’s financial instruments are
interest rate risk, liquidity risk and foreign currency risk. The Board’s policy on interest rate and liquidity risk is described in note 1
on significant accounting policies and in the Directors’ Report, which forms part of these financial statements.
Operations are financed through a mixture of retained profits, lease finance and bank borrowings. Other than finance leases and loan
notes, the Board’s policy is to use variable rate borrowings. To ensure continuity of debt funding the Group’s policy is to keep a
substantial part of debt as due in more than one year’s time. Short-term flexibility is achieved by overdraft facilities.
Carrying and fair values of the Group’s financial assets and liabilities at 31 March:
2008 2007
Carrying Carrying
value Fair value value Fair value
£000 £000 £000 £000
Financial assets
— trade and other receivables (classified as loans and receivables) 6,292 6,292 6,494 6,494
— cash and cash equivalents 1,245 1,245 543 543
Financial liabilities (held at amortised cost)
— borrowings bank loans (3,566) (3,566) (3,912) (3,912)
finance leases (1,543) (1,529) (1,757) (1,801)
— trade and other payables (6,382) (6,382) (6,496) ( 6,496)
Management consider the fair values to approximate to the present value of future cash flows based on market rates.
Management have appraised the sensitivity of the financial result to interest and currency movement as:
(i) a 1% increase in interest rates for variable borrowings would have reduced profit and equity by about £50,000.
(ii) a 1% strengthening in the value of sterling against all other currencies from the levels applicable at 31 March 2008 would have
reduced profit and equity by about £50,000.
The currency and interest rate profile of the Group’s financial assets and liabilities that are subject to interest rate risk at 
31 March was:
2008 2007
Floating Fixed Floating Fixed
Cash and Cash and
cash Bank Finance cash Bank Finance
equivalent loans leases Total equivalent loans leases Total
£000 £000 £000 £000 £000 £000 £000 £000
Sterling 15 (1,053) (1,543) (2,581) 146 (1,489) (1,757) (3,100)
US$ 1,124 (2,513) — (1,389) 383 (2,423) — (2,040)
Euro 106 —— 106 14 —— 14
1,245 (3,566) (1,543) (3,864) 543 (3,912) (1,757) (5,126)
The floating rate financial liabilities bear interest at rates based on the Barclays Bank base rate. The fixed rate financial liabilities have
a weighted average interest rate of 7.2% (2007: 7.7%) over a weighted average period of 3.0 years (2007: 3.3 years).
55 56
Intelek 
Report and Accounts 2008
Notes to the Financial Statements continued
for the year ended 31 March 2008
32. Financial Instruments continued
At 31 March, the Group’s financial liabilities have contractual maturities summarised below:
2008 2007
1–2 2–5 1–2 2–5
Total Current years years Total Current years years
Bank overdrafts and loans (3,566) (1,526) (236) (1,804) (3,912) (1,968) (480) (1,464)
Finance leases (1,543) (589) (438) (516) (1,757) (702) (487) (568)
Trade and other payables (6,381) (6,381) —— (6,496) (6,496) ——
(11,490) (8,496) (674) (2,320) (12,165) (9,166) (967) (2,032)
Net investment hedge
The Group has a US-based subsidiary company which can affect the sterling Group Balance Sheet as a result of movements in the
sterling/dollar exchange rate. The Group has partly hedged the US subsidiary company’s net asset exposure at 31 March 2008 using
bank loans in US$. The net currency movements on the subsidiary net assets and the related bank loans are recognised at each year end
and recorded through reserves. At 31 March 2008, the Group held $7.9 million net assets overseas and held loans of $5.0 million
designated as a partial hedge against this exposure. The hedge has been tested for effectiveness at inception and at each reporting date. Five Year Summary
IFRS UK GAAP
2008 2007 2006 2005 2005 2004
£000 £000 £000 £000 £000 £000
Sales
Continuing operations 35,962 36,840 35,212 31,524 31,524 31,965
Discontinued operations — —— — 5,768 6,926
Total 35,962 36,840 35,212 31,524 37,292 38,891
Underlying Operating Profit 3,818 2,905 2,701 2,789 2,301 2,370
Interest (450) (373) (311) (447) (506) (565)
Net pension finance cost (59) (192) (584) (631) ——
Underlying Profit 3,309 2,340 1,806 1,711 1,795 1,805
Continuing operations 3,309 2,340 1,806 1,711 1,911 1,508
Discontinued operations — —— — (116) 297
Amortisation of goodwill — —— — (789) (794)
Exceptional items — 3,282 — (309) (2,185) (289)
Profit before taxation 3,309 5,622 1,806 1,402 (1,179) 722
Taxation (953) (1,789) (483) (493) (359) (209)
Profit after taxation 2,356 3,833 1,323 909 (1,538) 513
Discontinued operations — —— 1,893 ——
Profit for the year 2,356 3,833 1,323 2,802 (1,538) 513
Earnings per Ordinary share (pence)
Basic 2.78 4.53 1.56 3.31 (1.82) 0.61
Diluted 2.77 4.53 1.56 3.31 (1.82) 0.61
Underlying: Continuing operations 2.78 2.05 1.56 1.33 1.49 1.47
Dividends per Ordinary share (pence) 0.45 0.39 0.36 0.36 0.36 0.36
Net debt (3,864) (5,126) (3,403) (2,344) (2,344) (6,630)
Total equity 15,964 14,544 11,390 10,998 21,615 19,885
www.intelek.plc.uk 57 Independent Auditor’s Report to the Members of Intelek plc
58
Intelek 
Report and Accounts 2008
We have audited the Parent Company
financial statements of Intelek plc for the
year ended 31 March 2008, which
comprise the Company balance sheet
and notes 1 to 9 of the financial
statements. These Parent Company
financial statements have been
prepared under the accounting policies
set out therein. 
We have reported separately on the
Group financial statements of Intelek plc
for the year ended 31 March 2008. This
report is made solely to the Company’s
shareholders, 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 shareholders 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
shareholders, as a body, for our audit
work, for this report, or for the opinions
we have formed.
Respective responsibilities of
Directors and auditor
The Directors’ responsibilities for
preparing the Parent Company financial
statements in accordance with
applicable law and United Kingdom
Accounting Standards are set out in the
Statement of Directors’ Responsibilities. 
Our responsibility is to audit the Parent
Company financial statements in
accordance with relevant legal and
regulatory requirements and
International Standards on Auditing (UK
and Ireland).
We report to you our opinion as to
whether the Parent Company financial
statements give a true and fair view and
whether the Parent Company financial
statements have been properly prepared
in accordance with the Companies Act
1985. We also report to you if the
information given in the Directors’
Report includes that specific information
presented in the Chairman’s Statement,
the Chief Executive Review, the
Financial Review that is cross-
referenced from the business review and
principal activities section in the
Directors’ Report. In addition, we report
to you if, in our opinion, the Company
has not kept proper accounting records,
if we have not received all the
information and explanations we require
for our audit, or if information specified
by law regarding Directors’
remuneration and other transactions is
not disclosed.
We read other information contained in
the Annual Report, and consider
whether it is consistent with the audited
Parent Company financial statements.
The other information comprises only
the Directors’ Report, the Chairman’s
Statement, the Chief Executive Review,
the Financial Review, the Corporate
Governance Report and the
Remuneration Report. We consider the
implications for our report if we become
aware of any apparent misstatements or
material inconsistencies with the Parent
Company financial statements. Our
responsibilities do not extend to any
other information.
Basis of audit opinion
We conducted our audit in accordance
with International Standards on Auditing
(UK and Ireland) issued by the Auditing
Practices Board. An audit includes
examination, on a test basis, of
evidence relevant to the amounts and
disclosures in the Parent Company
financial statements. It also includes an
assessment of the significant estimates
and judgements made by the Directors
in the preparation of the Parent
Company financial statements, and of
whether the accounting policies are
appropriate to the Company’s
circumstances, consistently applied and
adequately disclosed.
We planned and performed our audit so
as to obtain all the information and
explanations which we considered
necessary in order to provide us with
sufficient evidence to give reasonable
assurance that the Parent Company
financial statements are free from
material misstatement, whether caused
by fraud or other irregularity or error. In
forming our opinion we also evaluated
the overall adequacy of the presentation
of information in the Parent Company
financial statements.
Opinion
In our opinion 
 The Parent Company financial
statements give a true and fair view,
in accordance with United Kingdom
Generally Accepted Accounting
Practice, of the state of affairs of the
Company as at 31 March 2008; and
 The Parent Company financial
statements have been properly
prepared in accordance with the
Companies Act 1985.
 The information given in the
Directors’ Report is consistent with
the financial statements.
Grant Thornton UK LLP
Chartered Accountants 
and Registered Auditor
Birmingham, England
9 June 2008 Balance Sheet
as at 31 March 2008
2008 2007
Note £000 £000
Fixed assets
Investment in subsidiaries P3, P4 17,414 17,414
Long-term loan P5 10,854 11,020
Tangible fixed assets P6 6 11
28,274 28,445
Current assets
Amounts due from subsidiaries 8,017 9,792 
Other debtors 38 56
Deferred tax assets 253 347
Cash and cash equivalents 58 142 
Total current assets 8,366 10,337
Creditors: Amounts falling due within one year
Borrowings P7 (1,337) (3,021)
Amounts due to subsidiaries (51) (51)
Trade and other creditors (526) (647)
(1,914) (3,719)
Net current assets 6,452 6,618
Creditors: Amounts falling due after more than one year
Borrowings P7 (2,040) (1,944)
Net assets 32,686 33,119
EQUITY
Issued capital 4,369 4,369 
Own shares (429) (489)
Other reserves 604 605 
Retained earnings — non-distributable P8 14,494 14,494
— distributable P8 13,648 14,140
Equity shareholders’ funds P9 32,686 33,119
The financial statements on pages 59 to 61 were approved by the Board of Directors and signed on their behalf on 9 June 2008 by:
I D Brodie K N Edwards
Director Director
www.intelek.plc.uk 59 Notes to the Intelek plc Balance Sheet
60
Intelek 
Report and Accounts 2008
Significant accounting policies and basis of preparation
The separate financial statements of the Company are presented as required by the Companies Act 1985. They have been prepared
under the historical cost convention and in accordance with applicable United Kingdom generally accepted accounting practice and
United Kingdom law.
Investments
Fixed asset investments in subsidiaries are shown at cost less provision for impairment.
Employee benefits: Defined benefit scheme
The Company participates in the Group’s multi-employer defined benefit pension scheme. The Company is unable to identify its share of
the underlying assets of the scheme as the assets form a single fund. Consequently, the Company accounts for the scheme by
expensing contributions as they become due. Details of the scheme assets and liabilities are set out in the notes to the Group’s financial
statements.
Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is charged so as to write off the cost of the asset
over its useful estimated economic life. The principal rate applied is:
Plant and equipment 7%–33%
Deferred taxation
Deferred tax is provided on timing differences that have arisen but not reversed by the balance sheet date, where the timing difference
results in an obligation to pay more tax, or a right to pay less tax, in the future. Timing differences arise because of differences between
the treatment of certain items for accounting and taxation purposes. Deferred tax assets are recognised to the extent that it is regarded
as more likely than not that they will be recovered. Deferred tax is measured at tax rates that are expected to apply in the periods when
timing differences are expected to reverse, based on tax rates enacted at the balance sheet date.
Cash flow and related party transactions
The Group consolidated financial statements contain a consolidated cash flow statement and therefore the Company has taken
advantage of the exemption under FRS 1 not to present its own cash flow statement. Similarly, the Company has taken advantage of the
exemption under FRS 8 not to disclose related party transactions.
Financial instruments
The Group financial statements include disclosure sufficient to satisfy FRS 25 and consequently, the Company has taken advantage of
the exemption not to present separate financial instrument disclosures. 
P1. Profit and loss account
As permitted by section 230 of the Companies Act 1985, the Company has elected not to present its own profit and loss account for
the year. The profit for the year ended 31 March 2008 was £5,000 (2007: £16,110,000).
P2. Employees
2008 2007
The average monthly number of employees, including Executive Directors, was:
Administration 7 7
£000 £000
Costs in respect of these employees were:
Wages and salaries 643 617
Social security costs 77 71
Other pension costs 66 62
786 750
P3. Fixed asset investments
2008 2007
£000 £000
Cost
At 1 April 18,191 10,844
Additions — 11,220
Disposals — (3,873)
At 31 March 18,191 18,191
Provision
At 1 April and 31 March (777) (777)
Net book value 17,414 17,414 P4. Subsidiaries
The principal investments, all of which are wholly owned, are as follows:
Country of incorporation Activity
Intelek Properties Ltd UK Investment company
Intelek Inc USA Investment company
Paradise Datacom Ltd UK Manufacturer of satellite communications equipment
Paradise Datacom LLC USA Manufacturer of satellite communications equipment
Labtech Ltd UK Manufacturer of microwave communications components
CML Group Ltd UK Manufacturer of aerostructure components
P5. Long-term loan
The Company has provided a long-term loan to its wholly owned subsidiary, Intelek Inc, of $21.6 million (2007: $21.6 million). The
loan is interest bearing at commercial rates.
P6. Tangible fixed assets Plant and equipment
£000
Cost at 1 April 2007 80
Additions —
Disposal —
Cost at 31 March 2008 80
Depreciation at 1 April 2007 (69)
Charge for the year (5)
Disposal —
Depreciation at 31 March 2008 (74)
Net book value at 31 March 2008 6
Net book value at 31 March 2007 11
P7. Borrowings
2008 2007
£000 £000
Bank overdraft (865) (2,560)
Bank loans payable within one year (472) (461)
(1,337) (3,021)
Bank loans payable:
in more than one year but not more than two years (236) (480)
in more than two years but not more than five years (1,804) (1,464)
(2,040) (1,944)
Further details are included in the Group financial statements, note 31.
P8. Retained earnings
2008 2007
Non- Non-
distributable Distributable Total distributable Distributable Total
£000 £000 £000 £000 £000 £000
At 1 April 14,494 14,140 28,634 — 2,576 2,576
Profit/(loss) for the year —5 5 14,494 1,616 16,110
Cancellation of reserves —— — — 10,156 10,156
Dividends — (355) (355) — (315) (315)
Exchange adjustment — (142) (142) — 107 107
At 31 March 14,494 13,648 28,142 14,494 14,140 28,634
The non-distributable reserve was established on the sale to a subsidiary of the Company’s investment in another subsidiary at
perceived market value. The profit arising is not considered distributable as the sale did not give rise to a realised gain for the Group
as a whole.
P9. Reconciliation of movements in shareholders’ funds
2008 2007
£000 £000
At 1 April 33,119 17,217
Disposal of own shares 59 —
Profit/(loss) for the year 5 16,110
Dividends (355) (315)
Exchange adjustment (142) 107
At 31 March 32,686 33,119
Details of the share capital of Intelek plc and of the investment in own shares are disclosed in notes 23, 25 and 26 to the Group’s
financial statements.
www.intelek.plc.uk 61 62
Intelek 
Report and Accounts 2008
Notice of Annual General Meeting
Notice is given that the 2008 Annual General Meeting of the Company will be held at the premises of Intelek plc, South Marston
Park, Swindon, Wiltshire, SN3 4TR on Friday, 12 September 2008 at 10.30 am. The meeting will be for the following purposes:
Ordinary Business
To consider and, if thought fit, pass the following resolutions as ordinary resolutions:
1 To receive and adopt the Statement of Accounts for the year ended 31 March 2008 together with the Directors’ Report and
the Auditor’s Report on those accounts.
2 To declare a final dividend for the year ended 31 March 2008 of 0.30 pence per ordinary share in the capital of the Company,
to be paid on 24 September 2008 to shareholders whose names appear on the register at the close of business on 
29 August 2008.
3 To re-elect Mr Ian D Brodie, who retires by rotation, as a Director.
4 To reappoint Grant Thornton UK LLP as auditors to hold office from the conclusion of the meeting until the conclusion of the
next meeting at which the accounts are laid before the Company.
5 To authorise the Directors to fix the remuneration of the auditor.
Special Business
To consider and, if thought fit, to pass Resolutions 6, 7, 8, 9, and 10, as to which 6 will be proposed and voted on as an Ordinary
Resolution, and 7, 8, 9 and 10 will be proposed and voted on as Special Resolutions.
6 That the Directors be and are hereby generally and unconditionally authorised pursuant to the provisions of section 80 of the
Companies Act 1985 (“Act”), to exercise all the powers of the Company to allot relevant securities as defined by section 80
of the Act, provided that:
a) the maximum nominal amount of such securities that may be allotted under this authority (within the meaning of section
80 of the Act) is £1,131,196; and
b) this authority shall, unless it is (prior to its expiry) duly revoked or is renewed, expire at the conclusion of the Annual
General Meeting of the Company to be held in 2009 or fifteen months from the date of passing this Resolution
(whichever shall occur first) save that the Company may, before such expiry, make an offer or agreement which will or
may require relevant securities to be allotted after such expiry and the Directors of the Company may allot relevant
securities in pursuance of such offer or agreement as if the power conferred by this Resolution had not yet expired;
and provided also that the authority granted by this Resolution is in substitution for any existing authority to allot
relevant securities previously granted to the Directors which (to the extent that it remains in force and unexercised) is
hereby revoked.
7 That the Company be authorised pursuant to section 166 of the Act to make market purchases (as defined by section 163 of
the Act) of Ordinary Shares of 5p each in the capital of the Company (“Shares“) on such terms as the Directors of the
Company may determine, provided that such authority shall be limited as follows:
a) the Company shall purchase not more than 8,737,607 Ordinary Shares (representing 10% of the Company’s issued
Ordinary Share capital);
b) the price per Ordinary Share (exclusive of dealing and other incidental costs and stamp duty) to be paid by the
Company shall be:
i) not less than 5p; and
ii) not more than 105% of the average of the middle market quotations for the Shares taken from the Daily Official List
of the London Stock Exchange for each of the five business days immediately preceding the date upon which the
purchase is made;
c) the authority granted by this Resolution shall, unless it is (prior to its expiry) duly revoked, expire at the conclusion of the
Annual General Meeting to be held in 2009 or fifteen months from the date of passing this Resolution (whichever shall
occur first).
However, the Company may purchase its own shares of 5p each after this date provided that any such purchase is
made pursuant to a contract concluded before the authority expires, under which such purchases will or may be
completed or executed wholly or partly after such expiry, and provided also that the authority granted by this Resolution
is in substitution for any authority to purchase its own shares previously granted to the Company which (to the extent
that it remains in force and unexercised) is hereby revoked. www.intelek.plc.uk 63
8 That, subject to and conditional upon the passing of Resolution 6 set out above, the Directors of the Company be and are
hereby empowered pursuant to Section 95 of the Act to allot equity securities (within the meaning of Section 94 of the Act)
for cash pursuant to Section 80 of the Act as if Section 89(1) of the Act did not apply to any such allotment, provided that
this power shall be limited to:
a) the allotment of equity securities in connection with a rights issue in favour of or general offer to Ordinary Shareholders
where the equity securities respectively attributable to the interests of all the Ordinary Shareholders are proportionate (as
nearly as may be) to the number of Ordinary Shares held by them (but subject to such exclusions and other
arrangements as the Directors of the Company may deem necessary or expedient in relation to fractional entitlements
and any legal or practical difficulties or the requirements of any regulatory body or stock exchange); and
b) the allotment, otherwise than pursuant to subparagraph a) above, of equity securities up to an aggregate nominal value
of £218,440;
and shall expire at the conclusion of the Annual General Meeting of the Company to be held in 2009 or fifteen months
from the date of passing this Resolution, whichever shall occur first, save that the Company may before such expiry
make an offer or agreement which would or may require equity securities to be allotted after such expiry and the
Directors of the Company may allot equity securities in pursuance of such offer or agreement as if the power conferred
hereby had not expired and provided also that the authority and power hereby conferred shall be in substitution for any
previous authority conferred upon the Directors pursuant to the said Section 95 prior to the date of passing this
Resolution.
9 That, with immediate effect, the draft regulations produced to the meeting and for the purposes of identification marked “A”
and signed by the Chairman of the meeting be adopted as the articles of association of the company in substitution for, and
to the exclusion of, the existing articles of association.
10 That, subject to and conditional upon the passing of Resolution 9 set out above and with effect on and from 1 October 2008,
the articles of association adopted pursuant to Resolution 9 be amended by the deletion of article 106 and the insertion of
new articles 106, 107 and 108 and the remaining articles be re-numbered as set out in the document produced to the
meeting and for the purposes of identification marked “B” and signed by the Chairman of the meeting.
The background and detail for resolutions 9 and 10 are included in the Directors’ Report in the accounts for the year ended 
31 March 2008.
By order of the Board
K N Edwards
Director and Secretary
South Marston Park, Swindon, Wiltshire, SN3 4TR
9 June 2008 Notice of Annual General Meeting continued
64
Intelek 
Report and Accounts 2008
Notes
1 Only those members registered in the register of members of the Company as at 5.00 pm on 10 September 2008 or, in the
event that the meeting is adjourned, in the register of members 48 hours before the time of any adjourned meeting shall be
entitled to attend or vote at the meeting in respect of the number of shares registered in their name at that time. Changes to
entries in the register of members after 5.00 pm on 10 September 2008 or, in the event that the meeting is adjourned, after
48 hours before the time of any adjourned meeting shall be disregarded in determining the rights of any person to attend or
vote at the meeting.
2 A member is entitled to appoint one or more persons as proxies to exercise all or any of his rights to attend, speak and vote
at the meeting. A proxy need not be a member of the Company. A member may appoint more than one proxy in relation to
the meeting provided that each proxy is appointed to exercise the rights attached to a different share or shares held by him.
To appoint more than one proxy, you will need to complete a separate proxy form in relation to each appointment. You may
photocopy the proxy form if additional proxy forms are required. You will need to state clearly on each proxy form the
number of shares in relation to which the proxy is appointed. A failure to specify the number of shares each proxy
appointment relates to or specifying a number in excess of those held by the member may result in the proxy appointment
being invalid. You can only appoint a proxy using the procedures set out in these notes and the notes to the proxy form. 
The appointment of a proxy will not preclude a member from attending and voting in person at the meeting if he or she so
wishes.
3 A form of proxy is enclosed. To be valid, it must be completed, signed and sent to the offices of the Company’s registrars,
Lloyds TSB Registrars, The Causeway, Worthing, West Sussex, BN99 6DA, so as to arrive no later than 10.30 am on 
10 September 2008 (or, in the event that the meeting is adjourned, no later than 48 hours (excluding any part of a day that 
is not a working day) before the time of any adjourned meeting).
4 In order to facilitate voting by corporate representatives at the meeting, arrangements will be put in place at the meeting 
so that:
(a) if a corporate shareholder has appointed the chairman of the meeting as its corporate representative with instructions to
vote on a poll in accordance with the directions of all of the other corporate representatives for that shareholder at the
meeting, then on a poll those corporate representatives will give voting directions to the chairman and the chairman will
vote (or withhold a vote) as corporate representative in accordance with those directions; and 
(b) if more than one corporate representative for the same corporate shareholder attends the meeting but the corporate
shareholder has not appointed the chairman of the meeting as its corporate representative, a designated corporate
representative will be nominated, from those corporate representatives who attend, who will vote on a poll and the other
corporate representatives will give voting directions to that designated corporate representative.
Corporate shareholders are referred to the guidance issued by the Institute of Chartered Secretaries and Administrators on
proxies and corporate representatives (http://www.icsa.org.uk/) for further details of this procedure. The guidance includes a
sample form of representation letter if the chairman is being appointed as described in (a) above.
5 The following information is available for inspection during normal business hours at the registered office of the Company
(excluding weekends and public holidays). It will also be available for inspection at the place of the annual general meeting
from 9.30 am on the day of the meeting until the conclusion of the meeting:
(a) copies of the service contracts and letters of appointment of the directors; and
(b) the draft regulations referred to in Resolutions 9 and 10 above and marked “A” and “B” respectively.
6. Biographical details of all those Directors who are offering themselves for re-election at the meeting are set out on page 20
of the enclosed annual report and accounts. Glossary
Satellite Communications
Amplifier 
A device used to boost the strength of
an electronic signal. 
Analog 
A form of transmitting information
characterized by continuously variable
quantities, as opposed to digital
transmission, which is characterized 
by discrete bits of information in
numerical steps. An analog signal is
responsive to changes in light, sound,
heat and pressure. 
Aperture 
A cross sectional area of the antenna
which is exposed to the satellite signal. 
Backhaul 
A terrestrial communications channel
linking an earth station to a local
switching network or population centre. 
Bandwidth 
A measure of spectrum (frequency) 
use or capacity. For instance, a voice
transmission by telephone requires a
bandwidth of about 3,000 cycles per
second (3kHz). A TV channel occupies a
bandwidth of 6 million cycles per
second (6 MHz) in terrestrial systems. In
satellite-based systems a larger
bandwidth of 17.5 to 72 MHz is used to
spread or “dither” the television signal in
order to prevent interference. 
Bit 
A single digital unit of information.
Bit Error Rate 
The fraction of a sequence of message
bits that are in error. A bit error rate of
10-6 means that there is an average of
one error per million bits. 
Bit Rate 
The speed of a digital transmission,
measured in bits per second. 
Block Down Converter 
A device used to convert the 3.7 to 
4.2 kHz signal down to UHF or lower
frequencies (1 GHz and lower). 
C Band 
This is the band between 4 and 8 GHz
with the 6 and 4 GHz band being 
used for satellite communications.
Specifically, the 3.7 to 4.2 GHz satellite
communication band is used as the
downlink frequencies in tandem with 
the 5.925 to 6.425 GHz band that serves
as the uplink. 
Carrier 
The basic radio, television, or telephony
centre of frequency transmit signal. The
carrier in an analog signal is modulated
by manipulating its amplitude (making it
louder or softer) or its frequency (shifting
it up or down) in relation to the incoming
signal. Microwave and satellite
communications transmitters operate 
in the band from 1 to 14 GHz.
Channel 
A frequency band in which a specific
broadcast signal is transmitted.
Television signals require a 6 MHz
frequency band to carry all the
necessary picture detail.
DBS 
Direct broadcast satellite. Refers to
service that uses satellites to broadcast
multiple channels of television
programming directly to home mounted
small-dish antennas. 
Delay 
The time it takes for a signal to go 
from the sending station through the
satellite to the receiving station. This
transmission delay for a single hop
satellite connection is very close to one-
quarter of a second. 
Demodulator 
A satellite receiver circuit which extracts
or “demodulates” the “wanted” signals
from the received carrier. 
Digital 
Conversion of information into bits of
data for transmission through wire, 
fibre-optic cable, satellite, or over air
techniques. Method allows
simultaneous transmission of voice,
data or video. 
Downlink 
The satellite to earth half of a 2-way
telecommunications satellite link. Often
used to describe the receive dish end 
of the link. 
Earth Station 
The combination of antenna, amplifiers,
frequency converters and electronics
used to transmit/receive a signal via
satellite. Earth Station antennas vary in
size from 2 foot to 12 foot (65
centimetres to 3.7 metres) diameter size
used for TV reception to as large as 100
feet (30 metres) in diameter sometimes
used for international communications. 
Footprint 
A map of the signal strength over the
earth’s surface. Different satellite
transponders on the same satellite will
often have different footprints of the
signal strength.
Forward Error Correction (FEC) 
Adds unique codes to the digital signal
at the source so errors can be detected
and corrected at the receiver. 
Frequency 
The number of times that an alternating
current goes through its complete cycle
in one second of time. One cycle per
second is also referred to as one hertz.
Geostationary 
Refers to a satellite angle with zero
inclination, so the satellite appears to
hover over one spot on the earth’s
equator. For a planet the size and mass
of the earth, the satellite orbit required is
22,237 miles above the surface.
www.intelek.plc.uk 65 Glossary continued
66
Intelek 
Report and Accounts 2008
Gigahertz (GHz) 
One billion cycles per second. Signals
operating above 3 Gigahertz are known
as microwaves. Above 30 GHz they are
know as millimetre waves. As one
moves above the millimetre waves
signals begin to take on the
characteristics of Iightwaves. 
Hertz (Hz) 
A measure of frequency. One cycle per
second.
INMARSAT 
The International Maritime Satellite
Organization operates a network of
satellites for international transmissions
for all types of international mobile
services including maritime,
aeronautical, and land mobile. 
INTELSAT 
The International Telecommunications
Satellite Organization operates a 
network of satellites for international
transmissions. 
Interference 
Energy which tends to interfere with the
reception of the desired signals, such as
fading from airline flights, RF
interference from adjacent channels, or
ghosting from reflecting objects such as
mountains and buildings. 
Ka Band 
The frequency range from 18 to 31 GHz. 
Kbps 
Kilobits per second. Refers to
transmission speed of 1,000 bits per
second. 
Kilohertz (kHz) 
Refers to a unit of frequency equal to
1,000 hertz. 
Klystron 
A microwave tube which uses the
interaction between an electron beam
and the RF energy on microwave
cavities to provide signal amplification.
The klystron operates on principles of
velocity modulation very similar to those
in a TWT except that klystron interaction
takes place at discrete locations along
the electron beam. Common types of
klystrons are the reflex klystron (an
oscillator having only one cavity), two-
cavity klystron amplifiers and oscillators,
and multi-cavity klystron amplifiers. 
Ku Band 
The frequency range from 10.9 to
17 GHz. 
L-Band 
The frequency range from 0.5 to
1.5 GHz. Also used to refer to the 950 
to 1,450 MHz used for mobile
communications. 
Low Noise Amplifier (LNA) 
This is the preamplifier between the
antenna and the earth station receiver.
For maximum effectiveness, it must be
located as near to the antenna as
possible, and is usually attached directly
to the antenna receive port. The LNA is
especially designed to contribute the
least amount of thermal noise to the
received signal. 
Low Noise Block Downconverter
(LNB) 
A combination Low Noise Amplifier and
downconverter built into one device
attached to the feed. 
Megahertz (MHz) 
Refers to a frequency equal to one
million hertz, or cycles per second. 
Microwave 
Line-of-sight, point-to-point
transmission of signals at high
frequency. Many TV systems receive
some television signals from a distant
antenna location with the antenna and
the system connected by microwave
relay. Microwaves are also used for
data, voice, and indeed all types of
information transmission. 
Microwave Interference 
Interference which occurs when an
earth station aimed at a distant satellite
picks up a second, often stronger
signal, from a local telephone terrestrial
microwave relay transmitter. Microwave
interference can also be produced by
nearby radar transmitters as well as the
sun itself. Relocating the antenna by
only several feet will often completely
eliminate the microwave interference. 
Modem 
Short for modulator/demodulator. A
communications device that converts
one form of a signal to another that is
suitable for transmission over
communication circuits, typically from
digital to analog and then from analog 
to digital.
Modulation 
The process of manipulating the
frequency or amplitude of a carrier in
relation to an incoming video, voice or
data signal. 
Modulator 
A device which modulates a carrier.
Modulators are found as components in
broadcasting transmitters and in
satellite transponders. 
Multiplexing 
Techniques that allow a number of
simultaneous transmissions over a 
single circuit. 
Noise 
Any unwanted and unmodulated energy
that is always present to some extent
within any signal. 
Rain Outage 
Loss of signal at Ku or Ka Band
frequencies due to absorption and
increased sky-noise temperature
caused by heavy rainfall. 
Receiver (Rx) 
An electronic device which enables a
particular satellite signal to be separated Travelling Wave Tubes in satellite
communications systems because they
are lighter weight and are more reliable. 
Synchronization (Sync) 
The process of orienting the transmitter
and receiver circuits in the proper
manner in order that they can be
synchronized. 
Transmitter 
An electronic device consisting of
oscillator, modulator and other circuits
which produce a radio or television
electromagnetic wave signal for
radiation into the atmosphere by an
antenna. 
Transponder 
A combination receiver, frequency
converter, and transmitter package,
physically part of a communications
satellite. Transponders have a typical
output of five to ten watts, operate over 
a frequency band with a 36 to 72
megahertz bandwidth in the L, C, Ku,
and sometimes Ka Bands or in effect
typically in the microwave spectrum,
except for mobile satellite
communications. Communications
satellites typically have between 12 and
24 onboard transponders although the
INTELSAT VI at the extreme end has 50. 
TWT (Travelling wave tube) 
A microwave tube of special design
using a broadband circuit in which a
beam of electrons interacts continuously
with a guided electromagnetic field to
amplify microwave frequencies. 
TWTA (Travelling wave tube amplifier) 
A combination of a power supply, a
modulator (for pulsed systems), and a
travelling wave tube, often packaged in
a common enclosure. 
Uplink 
The earth station used to transmit
signals to a satellite. 
VSAT 
Very small aperture terminal. Refers to
small earth stations, usually in the 1.2 to
2.4 metre range. Small aperture
terminals under 0.5 metre are
sometimes referred to as Ultra Small
Aperture Terminals (USATs) 
Waveguide 
A metallic microwave conductor,
typically rectangular in shape, used to
carry microwave signals into and out of
microwave antennas. 
from all others being received by an
earth station, and converts the signal
format into a format for video, voice 
or data. 
RF
Radio Frequency refers to alternating
current having characteristics such that 
if the current is input to an antenna, an
electromagnetic field is generated
suitable for wireless broadcasting and
communication. These frequencies 
cover a significant portion of the
electromagnetic radiation spectrum,
extending from 9 kilohertz to thousands
of gigahertz.
Router 
Network layer device that determines
the optimal path along which network
traffic should be forwarded. Routers
forward packets from one network to
another based on network layer
information. 
Satellite 
A sophisticated electronic
communications relay station orbiting
22,237 miles above the equator moving
in a fixed orbit at the same speed and
direction of the earth (about 7,000 mph
east to west). 
Slot 
That longitudinal position in the
geosynchronous orbit into which a
communications satellite is “parked”.
Communications satellites are typically
positioned in slots which are based at
two to three degree intervals. 
SNG 
Satellite news gathering usually with a
transportable uplink truck. 
Spectrum 
The range of electromagnetic radio
frequencies used in transmission of
voice, data and television. 
SSPA 
Solid state power amplifier. A VSLI solid
state device that is gradually replacing
www.intelek.plc.uk 67 Glossary continued
68
Intelek 
Report and Accounts 2008
Microwave Communications
Aesa Radar
Active Electronically Scanned Array
Radars use many (up to thousands) of
small Transmit/Receive electronic active
circuits on a static radar face to
electronically scan the radar beam.
Broadband Amplifiers
Components which amplify microwave
signals over a broad range of
frequencies such as Octaves (e.g. 6–12
GHz) or multi-octaves (e.g. 2–18 GHz). 
Chip
An unpackaged semiconductor device
or integrated circuit.
Chip & Wire Assembly
Operation of attaching bare
semiconductor chips to a circuit or
package and connecting to the chips
using thin wires.
Clean Room
A manufacturing area with high levels of
humidity, temperature and dust control.
Digital Radio Link
A pair of subsystems which can transmit
and receive high frequency digital data.
Can be used on mobile telecom base
stations to provide network connectivity.
ERDLVA
Extended Range Detector Log Video
Amplifier — detects incoming
microwave signals over a very wide
input power range (e.g. >70 decibels).
Output voltage is directly proportioned
to incoming power measured in
decibels.
Laser Profiling
Using a Laser to accurately separate
individual circuits from a multicircuit
panel.
MIC
Microwave Integrated Circuit. The
technology of integrating microwave
chips into a circuit.
Microwave
A general term relating to the frequency
bands (~1 GHz to 100 GHz) in which a
product operates.
Microwave Power Amplifiers
Amplify microwave signals from
relatively low powers (e.g. 0.001 watts)
to output levels from ~5 to say 2000
watts. 
MMIC
Monolithic Microwave Integrated Circuit
— operating in the microwave frequency
range. These circuits are made out of
substrate material suitable for operating
at very high frequencies, e.g. GaAs
(Gallium Arsenide), and are available as
chips or chips in packages.
Multilayer
A PCB consisting of more than 2
dielectric and copper foil layers.
Package
The package of a semiconductor is the
physical and electrical interface
between the chip and the system in
which it operates.
PCB
Printed Circuit Board — used
extensively in the electronics industry to
integrate individual components and
chips.
Phased Array Radar
Usually uses a static antenna face and
steers the radar beam electronically as
opposed to more conventional radars
which physically rotate through 360º.
Photoprinter
Transfers a precision artwork film
pattern onto a circuit board using UV
light exposure.
PIN Switch
An electronic component capable of
quickly routing high frequency
microwave signals by using silicon PIN
Diodes.
Plated Through Holes
Holes drilled through microwave
dielectric insulating substrates and then
electro plated to provide electrical
connection from top conductor layers to
bottom conductor layers.
PTFE Substrates
Dielectric material used to produce high
performance microwave circuits. This
material contains a significant element
of PTFE (Teflon) to reduce microwave
signal transmission losses of power.
Thin Dielectric Substrate
Microwave circuit material with a
dielectric (sandwiched between 2
copper foil layers) thickness of say
0.005 inches.
Ultra Broadband Microwave Amplifier
Gain Modules
Modular building blocks which can be
cascaded to make a 2–18 GHz
microwave amplifier or used in a
microwave sub-system to provide
distributed gain at various key points.
Wire Bonding
Operation of electrically connecting to
semiconductor chips using thin wire
typically 25 microns in diameter. Auditors
Grant Thornton UK LLP
Chartered Accountants
Centre City Tower, 7 Hill Street,
Birmingham, B5 4UU
Solicitors
DLA
Victoria Square House,
Victoria Square, Birmingham, B2 4DL
Bankers
Barclays Bank PLC
Park House, Stoke Gifford,
Bristol, BS34 8TN
Fortis Bank
The Imperium, Imperial Way,
Worton Grange, Reading, RG2 0TD
Sovereign Bank
2790 West College Avenue, Suite 800,
State College, PA 16801, USA
Stockbrokers/Nomads
Brewin Dolphin
48 St Vincent Street,
Glasgow G2 5TS
Registrars
and Transfer Office
Equiniti Limited
The Causeway, Worthing,
West Sussex, BN99 6DA
Registered Office
Intelek plc
PO Box 25, South Marston Park,
Swindon, Wiltshire, SN3 4TR
Tel: (01793) 827000
Fax: (01793) 827578
e-mail: info@intelek.plc.uk
Website: www.intelek.plc.uk
Trading Subsidiaries
CML Group Limited
Price Street, Birkenhead,
Wirral, CH41 3PT
Tel: (0151) 647 5531
Fax: (0151) 650 0668
e-mail: enquiries@cml-group.com
Website: www.cml-group.com
Labtech Limited*
Unit 1, Broadaxe Business Park,
Presteigne, Powys, LD8 2UH
Tel: (01544) 260093
Fax: (01544) 260310
8 Vincent Avenue,
Crownhill, Milton Keynes, MK8 0AB
Tel: (01908) 261755
Fax: (01908) 261788
e-mail: sales@labtech.ltd.uk
Website: www.labtechcircuits.com
* Held directly by Intelek plc.
Paradise Datacom
Paradise Datacom Ltd*
1 Wheaton Road, Witham,
Essex, CM8 3UJ
Tel: (01376) 515636
Fax: (01376) 533762
e-mail: sales@paradise.co.uk
Paradise Datacom LLC
328 Innovation Boulevard,
Suite 100, State College,
PA 16803, USA
Tel: (001) 814 238 3450
Fax: (001) 814 238 3814
e-mail: sales@paradisedata.com
Website: www.paradisedata.com
Group Company Addresses
Advisers Intelek
Report and Accounts 2008