Annual Report and Accounts 
30 September 2016
Electronic Data Processing PLC 2016
Electronic Data Processing PLC Annual Report and Accounts 2016 Electronic Data Processing PLC annual report and accounts 2016 4
About EDP
Electronic Data Processing PLC is a leading 
supplier of advanced technology Software 
Solutions. These include ERP solutions for the 
Merchanting/Wholesale Distribution Industry, 
e-business, application hosting and Sales 
Intelligence Solutions together with 
a comprehensive range of customer 
support and education services. 
Our values
>  
We believe in conducting our business 
activities with integrity, building mutually 
beneficial long-term relationships with all  
our customers, providing the highest levels  
of professional service at every stage.
>  
We are committed to delivering superior 
value in our products and services to our 
customers, on a continuing basis.
>  
We respect the individuality of each member 
of our staff, fostering an environment where 
creativity and productivity are encouraged, 
valued and rewarded.
>  
We are dedicated to creating value for 
shareholders by performing in a manner 
which will enhance return on investment.
Electronic Data Processing PLC is incorporated in England and Wales under Registration Number 853560 Electronic Data Processing PLC Annual Report and Accounts 2016 1
Governance Notice of meeting Strategic report Financial statements
Key Highlights
In this report Visit us online
More information 
for investors, 
including reports, 
announcements 
and notices, at  
www.edp.co.uk
 > Turnover £4.96 million (2015: £5.16 million)
 > Contracted recurring revenues remain strong, representing 82% 
of total revenues (2015: 79%)
 > Hosting revenues amounted to 59% of total revenues (2015: 51%), 
strengthening our recurring revenues and therefore visibility
 > Adjusted operating profit broadly maintained at £430,000 after margin 
improvements and targeted overhead savings (2015: £459,000), giving 
an operating margin of 8.7% (2015: 8.9%)
 > Pre-tax profit of £244,000, after one-off charges of £114,000 in 
relation to property disposed of after the year end (2015: £347,000)
 > R&D expenditure was £982,000 in the year (2015: £1,067,000) 
reflecting continuing enhancement of Quantum VS and Vecta products
 > Strong debt-free balance sheet; cash balances of £5.40 million 
at 30 September 2016 (2015: £5.55 million)
 > Last remaining surplus freehold property sold after the year end 
for £1.2 million
 > Final dividend 3.0p per share, meaning overall dividend maintained 
at 5.0p for the full year
Strategic report
1 Key Highlights
2 Chairman’s Statement
3 Chief Executive’s Statement
5 Key Performance Indicators
6 Principal Risks and Uncertainties
8  Environmental, Employee, Social, 
Community and Human Rights Matters
Governance
9 Directors and Advisers
10  Directors’ Report
12  Corporate Governance
15  Audit Committee Report
16  Directors’ Remuneration Report
24  Statement of Directors’ Responsibilities
Financial statements
25 Independent Auditor’s report
28 Consolidated Income Statement
29  Consolidated Statement of 
Comprehensive Income
30 Consolidated Balance Sheet
31 Consolidated Statement of Changes in Equity
32 Consolidated Cash Flow Statement
33 Notes to the Consolidated Financial Statements
50 Company Balance Sheet
51 Company Statement of Changes in Equity
52 Company Cash Flow Statement
53 Notes to the Company Financial Statements
67 Five Year Statistical Record Electronic Data Processing PLC Annual Report and Accounts 2016 2
Chairman’s Statement
Sir Michael Heller
Turnover for the year to 30 September 2016 
was £4.96 million compared with £5.16 million 
the previous year. This resulted from a quiet 
end to the financial year as decisions on a 
discrete number of sales opportunities were 
delayed by customers. This is dealt with 
further in the Chief Executive’s statement.
Adjusted operating profit (which excludes 
non-cash IFRS items and exceptional 
non-trading costs and is reconciled to statutory 
profit before tax in note 3 to the consolidated 
financial statements) was £430,000, compared 
with £459,000 last year. The reduction in 
turnover was largely offset by improved 
margins and lower overheads.
Statutory pre-tax profit for the year was 
£244,000 (2015: £347,000) after charges 
of £114,000 in relation to property matters 
which are referred to below. 
Contracted recurring revenues, which 
comprise income from annual software 
licence fees and hosting subscription charges, 
amounted to 82% of total revenue compared 
with 79% in the previous year. Revenues 
generated through the hosting centre also 
increased to 59% of total revenues, up 
from 51%.
R&D expenditure for the year was 
£982,000 (2015: £1,067,000) as we 
continued to enhance our key products, 
Quantum VS and Vecta.
I am pleased to confirm that since the 
year end we have completed the sale of our 
surplus freehold property in Milton Keynes 
for £1.2 million. Net of disposal costs the 
proceeds amounted to £1.17 million. This 
resulted in a £10,000 reduction in the carrying 
value of the property at the year end. As 
reported at the half year stage, we incurred 
an exceptional charge of £104,000 relating 
to repairs to the roof of this property 
following storm damage. 
This sale completes a process that we 
started some years ago, to dispose of six 
freehold properties which had become 
surplus to operating requirements. Overall 
this process has generated more than 
£7 million of cash which has supported 
distributions to shareholders totalling 
£11 million over the same period.
Operating cash flows were strong and at 
the year end cash and short-term deposits 
(classified as investments in the balance sheet) 
totalled £5.4 million (2015: £5.55 million). 
This is after dividends paid during the year 
of £631,000 but this does not include the 
cash from the property disposal which 
was received after the year end.
Net assets at 30 September 2016 were 
£3.19 million compared to £4.96 million at 
30 September 2015. The reduction is due 
to a further increase in the liability relating 
to our defined benefit pension scheme 
under IAS 19. Net of deferred tax we have 
made a non-cash provision during the year 
of £1.4 million following a further significant 
decrease in the discount rate used to value 
liabilities under IAS 19. This is discussed 
further in the Chief Executive’s Statement.
The Directors are proposing to pay a final 
dividend of 3.0p per share (2015: 3.0p) 
giving a total dividend for the year of 5.0p, 
the same as last year. Total cash dividends 
paid to shareholders will therefore amount 
to £631,000. If approved by shareholders, 
the final dividend will be paid on 6 April 2017 
to those shareholders on the register at 
10 March 2017. The shares will be 
ex-dividend on 9 March 2017. 
We announced earlier in the year that we 
are carrying out a strategic review of the 
business and that process is continuing. 
We will report the conclusions of the 
review to shareholders in due course.
I would like to thank all our members of 
staff and my colleagues on the Board for 
their contribution during the year.
With a robust, cash generative business 
model and a strong debt-free balance sheet 
I remain confident about the future. 
Sir Michael Heller
Chairman
19 December 2016
Summary
•  Adjusted operating profit was £430,000 
compared with £459,000 last year. 
The reduction in turnover was largely 
offset by improved margins and 
lower overheads.
•  Since the year end we have completed 
the sale of our surplus freehold property 
in Milton Keynes for £1.2 million.
•  The Directors are proposing to pay a final 
dividend of 3.0p per share (2015: 3.0p) 
giving a total dividend for the year of 
5.0p, the same as last year. Total cash 
dividends paid to shareholders will 
therefore amount to £631,000. Electronic Data Processing PLC Annual Report and Accounts 2016 3
Governance Notice of meeting Strategic report Financial statements
Chief Executive’s Statement
Julian Wassell
Total revenue for the year was £4.96 million, 
a 4% reduction from last year. From a sales 
point of view, the end of the financial year 
was a little disappointing with a small number 
of customers delaying orders. Whilst each 
opportunity had a specific and understandable 
reason for the delay, it is also possible that 
caution over wider economic factors played 
a part in these instances. These opportunities 
have not been lost and we are continuing 
to work to expedite them. The first of the 
delayed orders was converted in October 
and so far in the current financial year we 
are slightly ahead of the previous year in 
overall revenue terms.
Our adjusted operating profit for the year 
was £430,000 compared with £459,000 in 
2015. Ordinarily we would expect a reduction 
in turnover to have a similar pound for pound 
impact on operating profit, as our overall 
gross margin is typically well over 90%. 
We were, however, able to maintain our 
adjusted operating profit at a level broadly 
similar to last year due to an improvement 
in margins and targeted overhead savings. 
Hardware related revenue was £116,000 
compared with £184,000.
We have for many years pursued a strategy 
to strengthen the relationship with our 
customers by growing the proportion of 
our revenues delivered through our hosting 
centre in Milton Keynes. Last year was no 
exception as hosting revenues amounted 
to 59% of total revenues, up from 51% the 
previous year, strengthening our recurring 
revenues and therefore visibility.
We strengthened our new business sales 
team last year and are currently looking to 
invest further in this area. We continue to 
manage the migration process to Quantum VS 
carefully, recognising that while Quantum VS 
provides an excellent solution for the majority 
of users of our older legacy products, the 
migration process itself inevitably leads to 
higher levels of customer churn than we 
have historically seen. We have continued 
to sign new orders during the year and at 
30 September 2016, we had 40 customers 
signed up for our Quantum VS product with 
a further 113 still using our older applications. 
The first customers for our new Quantum VS 
e-business module went live during the 
year and we have further customers currently 
in the implementation process. Quantum VS 
e-business allows us to offer a single product 
which can be implemented on an incremental 
basis starting with a simple website, through 
on-line catalogue access, to a sophisticated 
e–business solution fully integrated into their 
back-office application. It is also compatible 
with our legacy applications which assists 
the migration process.
In the short-term, we would expect to 
see the proportion of our total revenues 
represented by Vecta start to increase due 
to the fact that its sales cycle is much 
shorter than that for an ERP solution 
such as Quantum VS.
Strategy
Our two main products, Quantum VS and 
Vecta, deliver software solutions that offer 
clear business benefits to our customers 
helping them to generate sales growth or 
to create efficiencies and drive down costs. 
Quantum VS and Vecta are complementary 
with many of our customers using both.
Quantum VS is an ERP application focussed 
on a number of verticals within the distribution 
sector including builders and timber merchants, 
suppliers of fixings and fastenings, industrial 
and security products and electrical 
wholesalers. Our long-term strategy is to 
manage the migration of customers from our 
four legacy applications (Merchant, Charisma, 
Esprit and The Business Programme) to 
Quantum VS whilst identifying and exploiting 
new business opportunities in our target 
vertical markets.
Vecta is a powerful combined CRM and 
Business Intelligence (BI) product which 
drives sales growth for businesses in a 
wide range of verticals. Our strategy remains 
to exploit the space between the major 
CRM products, which typically do not 
deliver sales analysis, and pure BI tools. 
We plan to continue investing in the 
long-term future of our key products through 
significant levels of R&D. During the year 
under review total R&D expenditure amounted 
to £982,000 or 20% of total revenues. 
For comparison purposes, last year this 
was £1,067,000, also 20%.
Business model
Our software products are supplied under 
long-term contracts of up to five years’ 
initial duration. These can be either in 
the form of traditional on-site licencing 
arrangements or hosted service level 
agreements. These contracted recurring 
revenues represented 82% of total revenues 
during the year, up from 79% last year. 
Typically, our customer relationships extend 
well beyond the initial contract period. 
This recurring revenue model gives us 
good visibility of revenues and also generates 
strong cashflows as charges are typically 
invoiced annually in advance. 
The remaining 18% of our revenues arise 
from initial software licence fees, hosting 
joining fees and the provision of professional 
services (implementation, training and 
consultancy). We also supply a small 
amount of low-margin computer hardware.
Summary
•  Total revenue for the year was £4.96 million, 
a 4% reduction from last year. 
•  Adjusted operating profit for the year 
was £430,000 compared with £459,000 
in 2015. We were able to maintain 
our adjusted operating profit at a level 
broadly similar to last year due to an 
improvement in margins and targeted 
overhead savings.
•  Contracted recurring revenues represented 
82% of total revenues during the year, 
up from 79% last year. 
•  Operating cash flows remained strong 
at £860,000 (2015: £952,000). 
We have for many years 
pursued a strategy to 
strengthen the relationship 
with our customers by 
growing the proportion 
of our revenues delivered 
through our hosting centre 
in Milton Keynes. Last 
year was no exception 
as hosting revenues 
amounted to 59% of total 
revenues, up from 51% 
the previous year. Electronic Data Processing PLC Annual Report and Accounts 2016 4
“ Our two main products, Quantum VS and Vecta, deliver 
software solutions that offer clear business benefits to 
our customers helping them to generate sales growth 
or to create efficiencies and drive down costs.”
Business model continued
We have seen a gradual move in recent 
years away from the traditional licence 
fee model in favour of subscription pricing. 
This is particularly the case with Vecta, the 
latest version of which is exclusively delivered 
on a cloud basis. Subscription pricing in the 
long-term will benefit the business as 
on-going revenues are typically higher than 
under traditional licence fee arrangements. 
However, this is at the expense of lower 
up-front revenues in the short-term.
Financial review
Revenue for the year was £4.96 million 
compared with £5.16 million last year. 
Second half revenues were £2.45 million 
compared with £2.51 million in the first 
half of the year. 
Adjusted operating profit for the year was 
£430,000 representing an operating margin 
of 8.7%. This compares to £459,000 last 
year (an operating margin of 8.9%). Statutory 
profit before tax was £244,000 compared 
to £347,000 last year.
We use adjusted operating profit to 
monitor the performance of the business 
on a day-to-day basis. It excludes interest 
receivable, any gains and losses on property 
transactions, one-off exceptional items and 
a number of non-cash items which arise 
under IFRS (namely defined benefit pension 
scheme charges and the capitalisation 
and amortisation of development costs). 
A reconciliation of adjusted operating profit 
to statutory profit before tax is provided 
in note 3 to the accounts.
The current year’s result includes 
exceptional charges of £114,000 in relation 
to property matters. These are described 
in the property section below. Last year’s 
result included a net charge of £72,000 
in relation to property matters (a profit 
on disposal of £117,000 and a provision 
of £189,000 against the carrying value 
of the surplus Milton Keynes property).
Operating cash flows remained 
strong at £860,000 (2015: £952,000). 
Other significant cash items were dividends 
of £631,000 and capital expenditure 
of £360,000, after which cash balances 
and short-term deposits totalled £5.40 million 
compared to £5.55 million at 
30 September 2015.
R&D expenditure was £982,000 
(2015: £1,067,000). Of this £127,000 
(2015: £139,000) was capitalised as 
required by IAS 38. Amortisation of 
previously capitalised R&D expenditure 
amounted to £96,000 (2015: £66,000). 
Accordingly, the R&D charge in the income 
statement is £951,000 (2015: £994,000).
The tax charge for the year was £86,000 
(2015: £43,000) which represents an 
effective tax rate of 35%. £30,000 of 
the charge arises from a reduction in the 
deferred tax rate applied to the pension 
scheme liability. Taking this into account 
gives an underlying effective tax rate of 23%.
Earnings per share was 1.25p or 1.24p on 
a fully diluted basis (2015: 2.41p and 2.39p).
Pension
The liability associated with the Group’s 
defined benefit pension scheme has 
increased again this year, from £2.27 million 
to £3.88 million before deferred tax. This is 
principally due to a continuing fall in corporate 
bond yields which are used to value the 
liabilities in the scheme. Of this, £1.53 million 
has been taken directly to reserves as an 
actuarial loss. The remaining £84,000 has 
been charged in the income statement. 
The scheme was closed to future accrual 
in 2014 and consequently there was no 
current service cost in 2016.
Valuing the scheme under the accounting 
rules prescribed by IAS 19, net assets since 
2009 have been reduced by £3.38 million. 
The steady fall in corporate bond yields 
since 2009, which reflect the low interest 
rate environment that has prevailed over 
that period, has resulted in the discount 
rate assumption falling steadily, from 5.7% 
in 2009 to 2.2% in 2016. It should be noted 
that any subsequent increase in interest 
rates and recovery in bond yields would, inter 
alia, lead to an improvement in the IAS 19 
position of the scheme.
In contrast with the IAS 19 valuation, the 
most recent triennial actuarial valuation 
of the scheme, which was performed at 
31 July 2013, showed a small surplus on 
an ongoing funding basis. Importantly, as 
a result of the scheme being fully funded 
on this basis, the Group is not currently 
required to make cash contributions into 
the scheme. The scheme actuary is currently 
undertaking an updated triennial valuation 
as at 31 July 2016. This valuation will be 
finalised during 2017 and we will report 
the results to shareholders in due course.
The defined benefit pension scheme 
comprises a grouped funding arrangement 
whose sole asset is a with-profits insurance 
policy backed by corporate bonds. The main 
difference between the IAS 19 valuation and 
the ongoing funding valuation is that IAS 19 
requires the scheme asset to be valued at the 
insurance policy’s discontinuance surrender 
value at the period end. This valuation does 
not take into account the guaranteed annuity 
rates which have been secured by the policy 
and which are included in the ongoing 
scheme funding valuation.
Net assets
Primarily as a result of the increase in 
pension liability referred to above, net assets 
reduced to £3.19 million from £4.96 million. 
Net assets per share amounted to 25.3p 
(2015: 39.3p).
Chief Executive’s Statement continued
Julian Wassell Electronic Data Processing PLC Annual Report and Accounts 2016 5
Governance Notice of meeting Strategic report Financial statements
Property
We sold our last remaining surplus freehold 
property after the year end for £1.2 million. 
We had previously written the property 
down in the balance sheet to reflect the 
approximate expected net sale proceeds. 
A further charge of £10,000 was taken in 
the year under review to reflect the final 
disposal and clearance costs. Net cash 
proceeds after costs were £1.17 million. 
As we have previously reported, we incurred 
an exceptional charge of £104,000 in relation 
to repairs to the roof of this property following 
storm damage. The repairs were essential 
to ensure the sale ultimately progressed.
This property had been let on a short-term 
lease to a charitable organisation and, whilst 
this did not generate significant rental income, 
this arrangement did mitigate business rates 
of £53,000 per annum. Following the disposal 
we will achieve further cash cost savings of 
around £20,000 a year.
Since the year end we have relocated our 
Warrington office to alternative premises 
nearby achieving annual cost savings 
of approximately £30,000.
Outlook
It is too early to assess the impact of wider 
economic factors and any Brexit concerns 
in particular on our markets. However, the 
strength of our recurring revenue business 
model and continued investment in our 
new business sales team and our product 
portfolio should position us well to deal 
with challenges we face as a business 
over the coming year.
Finally, I would like to thank all of my 
colleagues throughout the business for 
their hard work and commitment during 
the year.
Julian Wassell
Chief Executive
19 December 2016
“ This recurring revenue model gives us 
good visibility of revenues and also generates 
strong cashflows.”
Key Performance 
Indicators
The following 
financial KPIs 
are used by the 
Board to review 
the performance 
of the business:
Level of software 
related revenues
Revenue from software and 
services reduced by 3% in FY16.
Sales of software and services 
account for 98% of total Group 
revenues in FY16, with the remainder 
comprising low margin hardware 
sales and hardware maintenance.
Adjusted operating 
profit margin
Our adjusted operating margin 
was 8.7% in FY16 compared with 
8.9% in FY15.
Adjusted operating margin is 
calculated using operating profit 
excluding one-off property costs, 
certain non-cash IFRS adjustments 
relating to defined benefit pension 
scheme charges and capitalisation/
amortisation of development costs 
and other exceptional non-trading 
items. A reconciliation of adjusted 
operating profit to statutory profit 
before tax is shown in note 3 to the 
consolidated financial statements. 
Level of contracted 
recurring revenues
Recurring revenues represent 
82% of total revenues in FY16 
up from 79% in FY15.
Recurring revenues underpin our 
business model and principally 
comprise contracted on-going 
software licences and hosting fees. 
Level and growth 
of hosted revenues
59% of our revenues were delivered 
through our hosting centre in FY16 
compared with 51% in FY15.  Electronic Data Processing PLC Annual Report and Accounts 2016 6
Risk Potential impact Mitigation
Systems and networks EDP’s business operations 
rely significantly on the efficient 
and uninterrupted operation of its 
information technology systems 
and networks.
Our computer network may 
be vulnerable to unauthorised 
access, viruses and other 
disruptive problems.
Any damage or interruption 
to EDP’s networks, however 
caused, could have a material 
adverse effect on the delivery 
of our products and services.
A party that is able to 
override security measures 
could misappropriate proprietary 
information or cause disruption 
to our operations.
We continually review and 
test the security of internal 
systems and networks and 
have developed recovery 
plans in the event of systems 
disruption. We use a third 
party to internally and externally 
scan our network to identify 
any potential vulnerability.
Where reliance is placed 
upon externally provided 
systems and networks we 
undertake regular performance 
ability reviews and ensure 
that contracts provide for 
an appropriate level of 
service maintenance.
Product technology advances The markets in which EDP 
operates are characterised by 
evolving technology, market 
practices and industry standards.
Competitors could develop 
superior products or more 
cost-effective techniques 
which could render our products 
uncompetitive or less acceptable to 
the market. This could result in the 
loss of new revenue opportunities, 
the non-renewal of contracts by 
existing customers or the failure 
of users of our legacy applications 
to migrate to Quantum VS.
We have an ongoing 
commitment to research 
and development which allows 
us to identify and adapt to any 
technological and market 
changes that do occur thereby 
ensuring that our products 
continue to meet the demands 
of our customers.
Principal Risks and Uncertainties
We operate in a changing economic and technological 
environment that presents risks, many of which are driven 
by factors that we cannot control or predict. The key risks 
and uncertainties facing EDP and the measures taken 
to mitigate these risks are as follows: Electronic Data Processing PLC Annual Report and Accounts 2016 7
Governance Notice of meeting Strategic report Financial statements
Risk Potential impact Mitigation
External economic factors As with most other businesses 
in the UK, our operations can be 
adversely affected by a significant 
downturn in the economy.
Restricted availability of finance 
for businesses and a stagnant 
or recessionary economy could 
have an adverse effect on the 
prospects for EDP, as potential 
customers, particularly in the 
builders and timber merchants 
sectors may scale back their 
IT plans in response to funding 
difficulties and/or reduced 
prospects for their businesses.
We seek to ensure that a 
significant proportion of our 
revenues are derived from 
long-term contracts with our 
customers, that our products 
appeal to businesses operating 
in a range of business sectors 
and that payments for our 
recurring fees are received 
annually in advance.
Competitor activity EDP operates in a 
competitive environment.
New entrants to our marketplace 
and actions taken by existing 
competitors could have an impact 
on our levels of business activity 
and product pricing in the 
market generally.
We endeavour 
to provide excellent 
customer support together 
with high quality products 
at a competitive price in order 
to develop and protect strong 
customer relationships.
Key employees In common with all people-based 
businesses, our success will, to 
a significant extent, be dependent 
on the experience of the Board 
and senior management. The 
retention of the services of 
EDP’s key employees cannot 
be guaranteed.
The loss of key employees could 
have a material adverse effect 
on EDP.
The failure to retain and develop 
key technical skills and product 
knowledge could hinder EDP’s 
future prospects.
We are continually focused 
on the need to recruit, retain, 
reward and motivate staff 
with the appropriate skills. Electronic Data Processing PLC Annual Report and Accounts 2016 8
Environmental information 
The Group’s operations, which are principally software development and hosting, by their nature have a minimal impact on the 
environment. Nevertheless, the Group is committed to minimising the impact of its activities on the environment through initiatives 
such as the provision of fuel-efficient cars to company car drivers and encouraging waste recycling at Group locations. 
Greenhouse gas emissions
During the year ended 30 September 2016 the Group purchased 590,000 kWh (2015: 602,000 kWh) of electricity, the majority of 
which was used at the Group’s hosting centre in Milton Keynes. Using the 2016 conversion factor for grid electricity published by 
Defra this equated to 243 tonnes (2015: 278 tonnes) of carbon dioxide equivalent emitted. This equated to approximately 3.6 tonnes 
(2015: 4.2 tonnes) per Group employee.
The Group also operates a fleet of cars. During the year ended 30 September 2016 the total carbon dioxide equivalent emitted by the 
vehicles, calculated from the manufacturers’ emissions rating for each car, was 79 tonnes (2015: 90 tonnes). This equated to an average 
of 3.6 tonnes per vehicle (2015: 4.4 tonnes).
Employee information
At the end of the financial year, the Group employed 70 people. This figure includes three Executive and two Non-Executive Directors, 
all of whom are male. There are five senior managers, four of whom are male and one female. Of the remaining 60 employees, 44 are 
male and 16 are female.
Employee, social, community and human rights
Our company values are long established having been set out at the head of our annual report for many years. They are set out below:
• We believe in conducting our business activities with integrity, building mutually beneficial long-term relationships with all our 
customers, providing the highest levels of professional service at every stage.
•  We are committed to delivering superior value in our products and services to our customers, on a continuing basis.
•  We respect the individuality of each member of our staff fostering an environment where creativity and productivity are encouraged, 
valued and rewarded.
•  We are dedicated to creating value for shareholders by performing in a manner which will enhance return on investment. 
The Group does not have any other significant environmental, employee, social, community or human rights issues.
Approval of Strategic Report
The Strategic Report on pages 1 to 8 was approved by the Board on 19 December 2016.
Julian Wassell 
Chief Executive
Environmental, Employee, Social, Community  
and Human Rights Matters Electronic Data Processing PLC Annual Report and Accounts 2016 9
Notice of meeting Governance Strategic report Financial statements
Directors and Advisers
Directors
Sir Michael Heller  (Chairman,  
Non-Executive)
J.H. Wassell (Chief Executive)
A.R. Heller (Non-Executive)
C.R. Spicer (Network Services)
J.M. Storey (Finance)
Secretary
J.M. Storey
Registered Office
4th Floor, Fountain Precinct 
Balm Green 
Sheffield S1 2JA
Auditor
KPMG LLP
Chartered Accountants 
1 Sovereign Square 
Sovereign Street 
Leeds LS1 4DA
Bankers
HSBC Bank plc
Carmel House 
49-63 Fargate 
Sheffield S1 2HD
Solicitors
Irwin Mitchell LLP
Riverside East 
2 Millsands 
Sheffield S3 8DT
Wake Smith LLP
No1 Velocity 
2 Tenter Street 
Sheffield S1 4BY
Financial advisers
BDO LLP
Corporate Finance 
Two Snowhill 
Birmingham B4 6GA
Stockbrokers
Stockdale Securities Limited
Beaufort House 
15 St. Botolph Street 
London EC3A 7BB
Registrars and transfer office
Capita Asset Services
The Registry 
34 Beckenham Road 
Beckenham 
Kent BR3 4TU 
Telephone 
+44 (0)871 664 0300 
(calls cost 12p per minute plus your 
phone company’s access charge.
Calls outside the UK will be charged 
at the applicable international rate.
Lines are open between 09.00 – 17.30, 
Monday to Friday excluding public holidays 
in England and Wales).
Website
www.capitaassetservices.com
E-mail
shareholderenquiries@capita.co.uk
Financial Calendar
Annual General Meeting 
21 March 2017
Interim results 
May/June 2017
9 10 Electronic Data Processing PLC Annual Report and Accounts 2016
The Directors present their annual report and financial statements for the year ended 30 September 2016. 
Future developments and going concern
An indication of future developments in the Group’s business is given in the Strategic Report and is incorporated in this Directors’ Report 
by reference. A review of the impact of the current economic environment on the going concern assumption is given in the Corporate 
Governance Report.
Financial statements and results
The Group financial statements for the period under review have been prepared under International Financial Reporting Standards as adopted 
by the EU. The Parent Company financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced 
Disclosure Framework (FRS 101).
The Group income statement for the year to 30 September 2016 is shown on page 28. The Group profit for the year before taxation 
amounted to £244,000 (2015: £347,000), with turnover of £4,958,000 (2015: £5,157,000).
After a tax charge of £86,000 (2015: £43,000), the profit for the year attributable to equity shareholders was £158,000 (2015: £304,000).
Dividends
An interim dividend of 2.0p per share was paid on 1 August 2016. The Directors propose the payment of a final dividend of 3.0p per share, 
making a total of 5.0p per share (2015: 5.0p).
Subject to shareholders’ approval, the final dividend will be paid on 6 April 2017 to shareholders whose names appear on the register 
at close of business on 10 March 2017.
Share capital
Details of the issued share capital and the rights attaching to those shares are contained in note 22 to the financial statements. 
The Company holds 1,173,097 ordinary shares in treasury which were purchased by the Company in a previous financial year 
and represent 9.3% of the called up share capital.
At the forthcoming Annual General Meeting, further to the ordinary business to be dealt with, the following resolutions will be considered:
An Ordinary Resolution will be proposed to give the Directors authority to allot ordinary shares representing 33 1/3% of the issued share 
capital of the Company.
The Directors consider that it would be advantageous for the Company to be in a position to purchase its own ordinary shares. Accordingly, 
a Special Resolution will be proposed at the Annual General Meeting to renew the existing authority to purchase up to 10% of the issued 
share capital of the Company. The Directors intend to seek to renew the authority at each subsequent Annual General Meeting.
Directors
The Directors at the date of this report, all of whom served throughout the year, are shown on page 9.
The Directors retiring by rotation are J.H. Wassell and C.R. Spicer and, being eligible, offer themselves for re-election.
J.H. Wassell has a service contract with the Company, dated 8 May 2008, which operates on a continuous basis and is terminable 
on six months’ notice.
C.R. Spicer has a service contract with the Company, dated 7 May 2008, which operates on a continuous basis and is terminable 
on six months’ notice.
Julian Wassell has been a Director for nineteen years and Chief Executive since 2008. He is a Chartered Accountant, qualified with 
Ernst & Young, and held a number of senior financial positions before joining EDP.
Chris Spicer has been a Director since 2001. He joined the EDP Group in 1986 following the acquisition of Business Computer Systems PLC. 
Chris is responsible for managing the Group’s Hosting Centre in Milton Keynes.
Details of Directors’ interests in shares and share options are given in the Directors’ Remuneration Report on pages 16 to 23. There were 
no changes in the Directors’ interests in shares or share options up to 19 December 2016. There were no contracts of significance subsisting 
during or at the end of the financial year in which a Director of the Company is or was materially interested.
Substantial shareholdings
At 19 December 2016 the only institutions or persons to have notified the Company of holdings of 3% or more are Sir Michael Heller (28.30%), 
Boyles Fund I, LP (17.87%), Olesen Value Fund, LP (5.50%) and Ewing Morris & Co. Investment Partners Ltd (5.15%).
Research and development
Group policy is to invest in product innovation and improvement at a level designed to enable it to retain and enhance its market position.
Directors’ Report 11
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Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
Greenhouse gas emissions
Details of the Group’s emissions of greenhouse gases are given in the Strategic Report on page 8.
Corporate governance
Corporate governance disclosures required to be included in the Directors’ Report can be found in the Corporate Governance Report 
on pages 12 to 14.
Auditor
In accordance with Section 489 of the Companies Act 2006, a resolution for the re-appointment of KPMG LLP as auditor of the Company 
is to be proposed at the forthcoming Annual General Meeting.
Directors’ statement as to disclosure of information to auditor
The Directors who were members of the Board on the date the Directors’ Report was approved have confirmed the following:
• to the best of each Director’s knowledge and belief there is no information relevant to their report of which the auditor is unaware; and
• each Director has taken all the steps a Director might reasonably be expected to take to be aware of relevant audit information and 
to establish that it has been communicated to the auditor.
Responsibility statement of the Directors in respect of the annual financial report
We confirm that to the best of our knowledge:
• the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, 
liabilities, financial position and profit of the Company and the undertakings included in the consolidation as a whole;
• the annual report and financial statements, taken as a whole, provides the information necessary to assess the Company’s performance, 
business model and strategy and is fair, balanced and understandable; and
• the Strategic Report includes a fair review of the development and performance of the business and the position of the Issuer and 
the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties 
that they face.
The Directors are shown on page 9.
By order of the Board
J.M. Storey
Director
19 December 2016 12 Electronic Data Processing PLC Annual Report and Accounts 2016
Corporate Governance
The Group is committed to high standards of corporate governance appropriate to its size and structure. The Board recognises its 
responsibility to the Company’s shareholders for good corporate governance and in doing so has given careful consideration to the 
principles of the UK Corporate Governance Code (the “Code”) (September 2014 edition) as set out below. The Board acknowledges 
its responsibility for ensuring that the annual report and accounts, taken as a whole, is fair, balanced and understandable and provides 
the information necessary for shareholders to assess the Company’s performance, business model and strategy.
Board structure and meetings
During the year under review the Board of Directors comprised three Executive Directors and two Non-Executive Directors.
The Non-Executive Chairman is responsible for the overall leadership of the Board and ensuring its effectiveness on all aspects of its role. 
The Board is responsible for overall strategy and consideration of significant financial and operational matters including the identification 
and assessment of the risks the Company faces. The Non-Executive Directors are encouraged to constructively challenge the Executive 
Directors and help develop proposals on strategy.
In addition to his role as Non-Executive Chairman of the Company, Sir Michael Heller is Executive Chairman of London & Associated 
Properties PLC and Bisichi Mining PLC, both of which are listed on the London Stock Exchange.
The Board met on five occasions during the year and has met on one occasion since the year end. All Directors attended the five Board 
meetings held during the year.
These meetings allow prompt decision making and assist in the control of strategic, financial and operational issues. To enable them 
to carry out their responsibilities, all Directors have full and timely access to all relevant information.
Directors are able to seek independent advice at the expense of the Company.
Internal control
The Directors are responsible for establishing and maintaining the Group’s system of internal control and have a process, which is updated 
when required, for reviewing its effectiveness. Such a system is designed to manage rather than eliminate the risk of failure to achieve 
business objectives and can provide reasonable, but not absolute, assurance against material misstatement or loss.
There is an organisational structure in place, with clearly defined lines of responsibility and delegated authority, which is incorporated 
within the Group’s policy and procedure directives.
Board approval is required for a number of matters, the most significant of which are:
• published financial statements;
•  acquisitions policy; and
•  d i v i d en d p o l ic y .
The following matters require the approval of the Executive Directors:
• capital expenditure and disposals;
• treasury procedures and investment policy; and
• banking arrangements.
There is an ongoing process for identifying, evaluating and managing the significant risks faced by the Company, which has been in place 
for the year under review and up to the date of the approval of the annual report and accounts. This is regularly reviewed by the Board 
of Directors and accords with the revised Turnbull guidance.
A detailed budget is prepared covering all of the Group’s operations. This budget is reviewed and approved by the Board. Detailed monthly 
management accounts are prepared on a timely basis comparing actual performance of the Group with budget and prior year. Any significant 
variances are investigated and appropriate action taken. Management reports are produced regularly and include information on sales, gross 
profit, overheads, cumulative performance, cash flow and treasury matters.
The Board has reviewed the effectiveness of the Group’s system of internal controls. Together with senior management, the Board has 
identified, evaluated and managed the significant risks facing the Group.
The Board will amend the specific control procedures which are put in place to reduce these risks whenever appropriate in order to meet 
the demands imposed by the business sector in which the Group operates. 13
Notice of meeting Governance Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
Audit committee
A description of the composition and activities of the audit committee is given in the Audit Committee Report on page 15.
Remuneration committee
The remuneration committee comprises Sir Michael Heller, Mr A.R. Heller and Mr J.H. Wassell. The Board considers the structure 
of the remuneration committee to be appropriate given the size of the Company.
The remuneration committee is responsible for determining the remuneration packages and other terms and conditions for the 
Executive Directors. Mr J.H. Wassell is not involved in determining his own remuneration. The Non-Executive Directors serving on 
the remuneration committee are not involved in determining their own individual remuneration. Individual Directors’ remuneration is 
detailed in the Directors’ Remuneration Report. The remuneration committee held one meeting during the year and was attended 
by all members.
Nomination committee
The nomination committee comprises Sir Michael Heller, Mr A.R. Heller and Mr J.H. Wassell. The committee is responsible for proposing 
candidates for appointment to the Board, having regard to the balance of skills, experience and knowledge of the Company on the Board, 
how the Board works together as a unit and other factors relevant to its effectiveness. The committee did not formally meet during the 
year as the current composition of the Board is considered by the committee to be appropriate. The Board considers the structure of the 
committee to be appropriate given the size of the Company. All Directors are subject to re-election at a maximum of every three years.
The Board does not have a formal policy on diversity. Appointments to the Board are recommended by the nomination committee 
on the basis of the experience and abilities of the candidate, regardless of gender or race.
Going concern
The Group’s business activities, together with the factors likely to affect its future development, performance and position along with 
the financial position of the Group, its cash flows and liquidity position, are described in the Strategic Report on pages 1 to 8. In addition 
note 19 to the financial statements includes details of the Group’s financial instruments and its exposures to credit risk and liquidity risk.
The Group has considerable financial resources together with a significant proportion of the Group’s revenues being derived from 
long-term contracts with established customers. As a consequence, the Directors believe that the Group is well placed to manage 
its business risks successfully.
After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to 
continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing 
the annual report and accounts.
Viability statement
In accordance with provision C.2.2 of the Code, the Directors have assessed the future prospects of the Company over a three-year 
period from the date of these accounts. An assessment period of three years was chosen for the following reasons:
• The Group’s software licences and hosting agreements for its ERP software are generally for five years in duration. Other software 
agreements are generally for three years. This means that on average the Group’s average unexpired software contract duration is 
typically two to three years.
• The industry in which the Company operates in is fast moving and subject to technological change. In this context, an assessment 
period in excess of three years is considered inappropriate.
The review was based upon the approved budget for the forthcoming year and built in assumptions consistent with the Group’s overall 
strategy on growth rates for the following two years. The assessment considered, amongst other things, operating profitability, cash generation 
and dividend cover. These metrics were subject to sensitivity analysis which involved adjusting, on a cumulative basis, a number of the 
key assumptions underlying the forecasts.
Based on the results of this review, the Directors have a reasonable expectation that the Company will be able to continue in operation 
and meet its liabilities as they fall due over the three-year assessment period.
Share capital
Details of the Company’s share capital structure are given in the Directors’ Report and in note 22 to these financial statements.
Internal audit
The Board reviews from time to time whether there is a need for an internal audit function and on its last review concluded that, due 
to the size of the Group and the internal controls that are currently in place, no specific function is required at the present time. 14 Electronic Data Processing PLC Annual Report and Accounts 2016
Corporate Governance continued
Investor relations
The Group enters into dialogue with both institutional and private shareholders at the AGM and also on an ad-hoc basis during the year. 
All Directors are required to attend the AGM in order, among other things, to ensure they develop an understanding of the views of the 
Company’s shareholders. A separate resolution is held for each issue at the AGM. 
It is the Directors’ intention that all shareholders will receive at least 20 working days’ notice of the AGM.
The Group publishes its annual report and accounts and interim report along with other information on its website at www.edp.co.uk.
Compliance
The Group complied with the provisions of the Code throughout the period under review other than as detailed below:
a)  The Group’s Non-Executive Directors have not been appointed for specified terms. The Board considers that because of the 
requirement for the Non-Executive Directors to stand for re-election at least every three years, specified terms are not required. 
The Code prescribes that Non-Executive Directors should be appointed for specified terms (B.2.3).
b)  The Board is aware that the two Non-Executive Directors are not regarded as independent for the purposes of the Code. As a result 
there is no senior independent Non-Executive Director and the Company therefore does not apply Code provisions A.4.1 and A.4.2. 
The Board considers that the structure of the Board is appropriate for the size and complexity of the Company.
c)   The Board considers that it is appropriate to operate a continual, informal evaluation process given the size and complexity of the 
Company. The Code prescribes that the Board should state in the annual report how the performance evaluation of the Board, its 
committees and its individual Directors has been conducted (B.6.1).
d)   The audit committee and remuneration committee are both chaired by the Non-Executive Chairman and as a result the Company does 
not fully comply with Code provisions C.3.1 and D.2.1. The nomination committee has no independent Non-Executive Directors serving 
on it and consequently the Company does not comply fully with provision B.2.1. The Board considers that the structure of the Board 
committees is appropriate for the size and complexity of the Company.
e)   The Non-Executive Chairman, who has served on the Board for over nine years, stands for election every three years rather than every 
year as prescribed by provision B.7.1. The Board considers this is appropriate given the Company’s size and complexity.
By order of the Board
J.M. Storey
Director
19 December 2016 15
Notice of meeting Governance Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
Audit Committee Report
The audit committee comprises the two Non-Executive Directors, Sir Michael Heller and Andrew Heller, both of whom are Chartered 
Accountants. The Board considers the structure of the audit committee to be appropriate considering the size and complexity of the Group.
The committee’s terms of reference, which have been approved by the Board, are available on request from the Company Secretary.
The main responsibilities of the audit committee are:
• to monitor the adequacy of the Group’s internal financial controls;
• to take primary responsibility for appointing and re-appointing auditors;
• to review and monitor the scope, results and cost effectiveness of the external audit process;
• to monitor the procedures in place to safeguard the objectivity of the auditor and its independence in relation to non-audit services;
• to review the key assumptions and estimates or judgements that have been applied by management in the published financial 
statements; and
• to consider the need for an internal audit function.
The audit committee meets three times during the year. Meetings are held prior to publication of the annual results and half-year results. 
A meeting is also held just after the year end to review, among other things, the significant judgements and estimates made by management 
in preparing the financial statements. During this meeting the external auditor presents its strategy document. Both members of the 
committee, along with the Chief Executive and Finance Director, attended all meetings. The external auditor attended two meetings.
The committee has concluded that given the size and complexity of the Group there is no current need for an internal audit function.
The committee has considered the following significant accounting issues and areas of estimation and judgement in relation to these 
financial statements:
• We considered the accounting policy, as presented by the Finance Director in a paper prepared for the committee, relating to 
recognition of revenue and whether the established policy was still appropriate for the business. We were content that the current 
policy was still appropriate. We were satisfied that the Group’s internal controls for ensuring that revenues were allocated to the 
correct period were effective.
• We considered the judgements made by management in the year-end valuation of the Group’s freehold properties. We were content 
that management’s estimate of residual values reflected the currently available market evidence. We considered management’s 
judgement that the vacant property met the criteria for disclosure as a held-for-sale asset at the year end.
• We considered the approach taken by management in updating the key assumptions used in the valuation of the Group’s defined benefit 
pension scheme, following guidance from the independent scheme actuary, and were content that the approach was appropriate.
• We considered the processes put in place by management, as presented by the Finance Director in a paper prepared for the committee, 
for the identification and recording of expenditure on software development which is capitalised and amortised under IAS 38. We were 
satisfied that these processes were appropriate.
The committee has considered the effectiveness and quality of the external audit process. A key element of this is a review of the auditor’s 
formal Audit Strategy Document which is presented to the committee prior to the commencement of the annual audit. This document 
highlights to the committee the auditor’s assessment of audit materiality and the key audit focus areas. It also includes a formal assessment 
of the auditor’s independence.
The Group’s auditors, KPMG LLP, and their legacy predecessors, have been in place since 1965. In line with the audit profession’s own 
ethical guidance the audit engagement partner is rotated every five years. The committee has considered whether it is appropriate to put 
the external audit contract out to tender. It has concluded that currently there is no requirement to conduct a tender process. 
The committee has also reviewed the procedures that are in place to safeguard the objectivity of the auditor and its independence in 
relation to non-audit services. The auditor is excluded from undertaking a range of work on behalf of the Group which includes appraisal 
or valuation services, management functions, litigation support and accounting and remuneration services. An analysis of the fees paid 
to the auditor in respect of non-audit work is shown in note 5, of which most relates to the preparation and submission of the Group’s 
corporation tax computations. Auditor independence is safeguarded by ensuring that the auditor is not involved in the preparation of 
the current and deferred tax provisions for the financial statements.
Sir Michael Heller
Chairman – Audit Committee
19 December 2016 16 Electronic Data Processing PLC Annual Report and Accounts 2016
Directors’ Remuneration Report
Remuneration Committee Chairman’s Statement
I am pleased to present the Directors’ Remuneration Report for the year ended 30 September 2016.
The current approved Directors’ remuneration policy, which became effective on 1 October 2014, has been in place for the whole of the 
current financial year. As described in the 2013 Policy Report, the remuneration committee concluded that the pre-existing arrangements for 
remunerating the Executive Directors were an appropriate basis for framing the new policy and the policy has been implemented accordingly.
This year the remuneration committee has awarded the Executive Directors bonuses totalling in aggregate £27,500 in respect of the 
current financial year. In accordance with the remuneration policy, the maximum potential bonus pool has been calculated at 10% of adjusted 
operating profit. The allocation of the total bonus, amounting to 57% of the maximum potential bonus, to the individual Executive Directors, 
is shown on page 17.
As it is nearly three years since the Directors’ remuneration policy was last voted upon, an Ordinary Resolution to approve the future 
Directors’ remuneration policy will be put to shareholders at the 2017 Annual General Meeting.
The future policy, which is set out on pages 20 to 23, is very similar to the current policy. Having reviewed the current arrangements that 
are in place for remunerating the Executive Directors, the remuneration committee has concluded that the current framework remains an 
appropriate one for remunerating the Executive Directors in the future.
The remuneration committee believes that for a company of EDP’s size and complexity, it is appropriate to augment the Executive Directors’ 
basic salary and benefits packages with a straightforward bonus scheme which is linked wholly to the operating profitability of the Group. 
It is our belief that this scheme benefits from its transparency and closely aligns the interests of the Executive Directors with those 
of our shareholders.
We have indicated in the Future Directors’ Remuneration Policy Report where possible the likely and maximum remuneration that can 
be awarded to Directors for each component of pay. However, the remuneration committee also seeks to give itself sufficient operational 
flexibility over pay and would like to reserve the right, in limited circumstances, to be able to use discretion over certain matters. 
The situations where the committee will seek to use this discretion will be those where a significant development in the business 
results in an increase in a Director’s role and responsibility.
Sir Michael Heller
Chairman – Remuneration Committee
19 December 2016 17
Notice of meeting Governance Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
Annual Report on Remuneration
Audited information
Single figure for total remuneration
The remuneration received by the Directors who served during the year is set out below:
2016
Salary
£
Benefits
£
Bonus
£
Pension
£
Total
£
Executive
J.H. Wassell 95,000 12,804 10,500 6,650 124,954
C.R. Spicer 76,000 14,267 8,500 9,880 108,647
J.M. Storey 76,000 9,959 8,500 5,320 99,779
Non-Executive
Sir Michael Heller 50,000 14,191 — — 64,191
A.R. Heller 10,000 — — — 10,000
307,000 51,221 27,500 21,850 407,571
2015
Salary
£
Benefits
£
Bonus
£
Pension
£
Total
£
Executive
J.H. Wassell 95,000 12,626 9,500 6,650 123,776
P.A. Davey* 17,161 3,220 1,502 1,201 23,084
P.J. Davies* 17,161 3,088 — 1,201 21,450
C.R. Spicer 76,000 10,284 7,600 9,880 103,764
J.M. Storey 71,500 9,126 7,600 5,005 93,231
Non-Executive
Sir Michael Heller 50,000 13,484 — — 63,484
A.R. Heller 10,000 — — — 10,000
336,822 51,828 26,202 23,937 438,789
*  P.A. Davey and P.J. Davies stepped down from the Board on 22 December 2014. The figures in the table for these Directors relate to the period 
1 October 2014 to 22 December 2014.
Benefits comprise company car, private fuel, private healthcare and telephone costs.
Directors’ pension entitlements
Details of the pension entitlements of the Director who participates in the Group’s defined benefit pension scheme are as follows:
Normal retirement date
Accrued 
pension 
entitlement at
30 September
 2016
£
Accrued 
pension 
entitlement at 
30 September
 2015
£
C.R. Spicer
Current service period 30 September 2018 19,068 19,087
Deferred benefits from a prior service period 30 September 2018 12,990 13,003
32,058 32,090
No additional benefit is expected under the scheme rules on early retirement before normal retirement date.
The scheme closed to future accrual with effect from 31 August 2014 and C.R. Spicer became a deferred member from that date. 
From 1 September 2014 C.R. Spicer became a member of the Group’s money purchase pension scheme with the Group contributing 
13% of pensionable salary for three years. Thereafter the Group’s contribution will be 3% of pensionable salary.
The other Executive Directors are members of money purchase personal pension schemes and are entitled to have contributions paid 
in by the Group at the rate of 7% of pensionable salary. 18 Electronic Data Processing PLC Annual Report and Accounts 2016
Directors’ Remuneration Report continued
Annual Report on Remuneration continued
Audited information continued
Directors’ shareholding and share interests
Directors’ interests in the issued share capital of the Company at 30 September 2016 and 30 September 2015 were as follows:
Number of shares
2016 2015
Beneficial Non-beneficial Beneficial Non-beneficial
Sir Michael Heller 2,571,050 997,500* 2,571,050 997,500*
J.H. Wassell 95,000 — 95,000 —
A.R. Heller — 407,750 — 407,750
C.R. Spicer 1,000 — 1,000 —
J.M. Storey 5,000 — 5,000 —
* Includes 407,750 shares in which Mr A. R. Heller has a non-beneficial interest.
Details of options granted to Directors who served during the year under the Company’s Enterprise Management Incentive Share Option 
Plan are as follows:
Number of options
Exercise
price
1 October 
2015
Granted
 in year
Exercised
in year
30 September 
2016
Exercisable 
from
Exercisable 
to
J.H. Wassell 45.5p 100,000 — — 100,000 30/09/13 29/09/20
C.R. Spicer 45.5p 90,000 — — 90,000 30/09/13 29/09/20
J.M. Storey 45.5p 45,000 — — 45,000 30/09/13 29/09/20
235,000 — — 235,000 
None of the Executive Directors were awarded interests in the share option plan during the year and therefore no separate table of scheme 
interests awarded during the financial year has been presented. There are no other schemes in operation.
All share options had a grant date of 30 September 2010. None of the share options are subject to performance measures.
The middle market price of Electronic Data Processing PLC ordinary shares at 30 September 2016 was 71.5p. During the year the share 
price ranged between 63.0p and 75.5p.
Unaudited information
Performance graph
The following graph shows the Group’s performance, measured by total shareholder return, compared with the FTSE Small Cap Index 
since 1 October 2011. The Directors have chosen this index as it gives an indication of performance compared against a large spread 
of smaller quoted companies.
The vertical axis represents an index where holdings of shares in both EDP and a representative holding of shares in the FTSE Small Cap Index 
are based at 100 on 1 October 2011.
— FTSE Small Cap
— EDP
2011 2012 2013 2014 2015 2016
250
200
150
100
50
0 19
Notice of meeting Governance Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
Annual Report on Remuneration continued
Unaudited information continued
Chief Executive remuneration
The remuneration of the Chief Executive, J. H. Wassell, since 2009 is shown below:
2009
£
2010
£
2011
£
2012
£
2013
£
2014
£
2015
£
2016
£
Total remuneration 121,800 135,155 139,196 138,477 181,383* 113,521 123,776 124,954
* The total remuneration figure for 2013 includes £44,100 in respect of the notional value of share options vesting in the period.
With regard to the maximum bonus that could have been awarded in 2016, this is not set by individual Executive Director. The total amount 
of bonus awarded to the Executive Directors is ordinarily set at 10% of the Group’s adjusted operating profit for the year. This is therefore 
also the maximum bonus that can be awarded to the Executive Directors collectively. The allocation between individual Directors is decided 
on an annual basis taking into account individual and collective performance and level of experience as a Director.
The bonus is awarded at the discretion of the remuneration committee.
The share options that vested in 2013 represented 100% of the total number that could have vested in that year.
The percentage change in the remuneration of J.H. Wassell compared to that of all employees of the Group as a whole is shown below:
Salary Benefits Bonus
J.H. Wassell 0.0% 1.4% 10.5%
All employees 0.0% 0.0% *
* The bonus scheme is applicable to Executive Directors only.
The salaries of all Group employees excluding the Directors are reviewed on 1 November each year. At the 1 November 2015 review date 
employee salaries were not changed.
In addition individual employee salaries are reviewed in cases of increased responsibility, greater experience or exceptional performance.
J.M. Storey’s salary was increased from £71,500 to £76,000 on 1 October 2015. The salaries of J.H. Wassell and C.R. Spicer were not 
changed during the year.
Relative importance of spend on pay 
The total expenditure of the Group on remuneration to all employees compared to distributions to shareholders is shown below:
2016
£’000
2015
£’000
Employee remuneration 3,013 3,030
Distributions to shareholders
Ordinary dividends 631 504
Shareholder voting
Details of the votes of shareholders at the Company’s AGM on 22 March 2016 relating to remuneration are shown below:
% 
of votes 
for
% 
of votes 
against
Number 
of votes 
withheld
Resolution to approve the Directors’ Remuneration Report 100% — — 20 Electronic Data Processing PLC Annual Report and Accounts 2016
Directors’ Remuneration Report continued
Policy Report
Future Directors’ remuneration policy
The remuneration policy proposed by the remuneration committee is designed to ensure that the Directors’ interests are allied to the 
long-term growth of the Group and its pre-tax profits and, therefore, to the interests of shareholders as a whole. Remuneration packages 
are to be set at a level necessary to attract, retain and motivate Directors of the quality required by the Group. 
The committee has also taken into account pay and employment conditions elsewhere in the Group. The Board’s policy is to consider 
granting share options to the Executive Directors and other senior personnel at appropriate times to provide them with an interest in the 
longer-term development of the Group. The Board has fully considered the requirements of Schedule A of the UK Corporate Governance 
Code on Directors’ remuneration in framing its policy.
At the forthcoming Annual General Meeting (AGM), an Ordinary Resolution will be proposed to approve the Directors’ remuneration policy 
in accordance with Section 439A of the Companies Act 2006. It is intended that the policy will take effect immediately following the AGM. 
The policy is shown in the following table:
Purpose and how it supports strategy Operation Performance measures Maximum opportunity
Salary –  
Executive Directors
Salaries are to be set at a level 
which are considered appropriate 
to attract, retain and motivate 
Directors of the quality required 
by the Group in order to execute 
its strategy.
An Executive Director’s basic 
salary will be considered by the 
committee on their appointment.
Salaries will be reviewed 
annually or when a change 
in responsibility occurs.
When reviewing salaries the 
remuneration committee will 
consider remuneration practices 
within the Group as a whole 
along with conditions in the 
sector and markets in which 
it operates.
Performance conditions will 
not be attached to the payment 
of basic salaries. However, 
the performance of individual 
Directors is considered by 
the committee when 
setting salaries.
The current annual salaries 
of the Executive Directors are: 
J.H. Wassell £95,000 
C.R. Spicer £76,000 
J.M. Storey £76,000
When setting future salaries, the 
committee will take into account 
the pay and conditions for other 
employees in the Group but will 
exercise its discretion to take 
account of other factors including:
• changes in role and responsibility; 
• significant developments 
in the Group’s activities 
such as an acquisition;
• the development of less 
experienced Directors; and 
• market conditions generally.
Salary –  
Non-Executive Directors
Salaries are to be set at a level 
that are commensurate with the 
experience and skills required 
of the Non-Executive Directors 
to assist the Board with setting 
and monitoring the strategy 
of the Company.
The salaries of the 
Non-Executive Directors are 
to be determined by the Board 
at a level that reflects the time 
commitment and responsibilities 
of the role.
None The current annual salaries of the 
Non-Executive Directors are: 
Sir Michael Heller £50,000 
A.R. Heller £10,000
The committee in setting future 
salaries will take into account 
the time commitment and input 
required from the Non-Executive 
Directors together with 
Non-Executive pay generally.
Benefits
Benefits are provided in line 
with standard commercial 
practice and form part of the 
overall remuneration package 
required to motivate and retain 
the Executive Directors.
All Executive Directors and 
the Non-Executive Chairman 
are provided with a company 
car which includes the option 
to receive private fuel.
The Executive Directors 
are entitled to receive private 
healthcare and death in service 
cover in schemes available 
to all Group employees. The 
Non-Executive Chairman is 
entitled to receive reimbursement 
of certain telephone costs.
None The value of benefits for 
each Director for the year ended 
30 September 2016 are shown 
in the table on page 17.
The value of benefits in future 
years will be determined by, 
among other things, HMRC rules 
for measuring benefits for 
tax purposes.
The committee will retain the 
discretion to award additional 
benefits to address new 
business requirements, 
for example relocation. 21
Notice of meeting Governance Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
Purpose and how it supports strategy Operation Performance measures Maximum opportunity
Bonus
The bonus scheme links 
part of the remuneration 
of the Executive Directors 
to the financial performance 
of the Group.
A performance related 
bonus scheme operates for all 
Executive Directors. The bonus 
is based on the Group’s operating 
profit and is not pensionable.
The maximum total bonus 
that can be awarded to the 
Executive Directors as a whole 
is calculated at 10% of annual 
adjusted operating profit before 
taking account of the bonus. 
The total bonus is allocated to 
the individual Executive Directors 
by the committee following an 
appraisal of each Director’s 
individual performance and 
level of experience.
The bonus awarded to the 
Executive Directors for the year 
ended 30 September 2016 is 
shown in the table on page 17.
The maximum opportunity for 
total bonus is 10% of the Group’s 
adjusted operating profit before 
taking into account the bonus. 
The bonus is allocated to the 
individual Directors by the 
committee at its discretion.
Pension
Pension arrangements are 
provided in line with standard 
commercial practice and form 
part of the overall remuneration 
package required to motivate 
and retain the Executive Directors.
The Executive Directors 
participate in pension 
arrangements operated 
by the Company.
The Executive Directors 
are entitled to receive 
contributions into personal 
pension arrangements. In 
the case of J.H. Wassell and 
J.M. Storey, the contribution rate 
is 7% of basic salary. In the case 
of C.R. Spicer the contribution 
rate is 13% of basic salary up to 
31 August 2017 and 3% of basic 
salary from 1 September 2017.
None The pension contributions that will 
be paid by the Company for the 
year ended 30 September 2017 are: 
J.H. Wassell – 7% of basic salary,  
J.M. Storey – 7% of basic salary, 
C.R. Spicer – 13% of basic salary 
up to 31 August 2017, 3% of basic 
salary from 1 September 2017.
The committee will retain 
the discretion to review the 
contribution rate into personal 
pension arrangements from 
time to time in line with 
market conditions.
Share options
The scheme provides a link 
between the remuneration of 
the Executive Directors and the 
long-term increase to shareholder 
value through an increase in the 
share price.
The Company operates 
an Enterprise Management 
Incentive (EMI) Share Option 
Plan. Each Executive Director is 
eligible to participate in the plan. 
The scheme allows options to 
be granted to eligible employees 
to purchase a limited number of 
shares in the Company within a 
period of three to ten years from 
the date of grant for not less 
than the market value of the 
shares at the date of grant.
Entitlement to share options 
is not subject to specific 
performance conditions because 
it is considered appropriate, 
given the size and nature 
of the Group, to measure the 
performance of the business, 
and therefore the Executive 
Directors, based on the 
Company share price.
Share options granted to 
Executive Directors under the 
scheme on 30 September 2010 
are shown on page 18. There 
remain 41,549 options not yet 
issued under the current scheme. 
The committee may deem 
it appropriate to grant these 
remaining options to Executive 
Directors at some future time.
There are currently no other share 
option schemes or long-term 
incentive schemes in operation.
Policy Report continued
Future Directors’ remuneration policy continued 22 Electronic Data Processing PLC Annual Report and Accounts 2016
Policy Report continued
General employee remuneration policy
The Company’s policy is to pay salaries at a level sufficient to attract, retain and motivate Group employees. Salaries are reviewed once 
a year. There was no general increase in salaries in 2016. Certain individual employees received increases where there had been a change 
in responsibility or experience or where there had been exceptional performance. 
Certain employees are provided with a company car as appropriate. Employees who have three years’ service are able to join the private 
healthcare scheme. All employees are covered under the Group’s death in service insurance arrangements. All employees receive employer 
contributions into a company pension scheme other than those who have opted out or are not eligible under the auto-enrolment rules.
Certain senior personnel have been granted options under the same EMI Share Option Scheme that the Executive Directors have been 
granted options under. Those employees working in a sales or professional services role receive a variable commission which is based 
upon their own performance. There are no other performance related remuneration schemes available to Group employees.
Recruitment remuneration
When agreeing the components of a remuneration package for the appointment of Directors, the committee will take into account, 
among other things, the following factors:
• the level of experience and skill required to peform the role;
• in the case of a Non-Executive recruit, the level of time commitment and expertise required;
• employment market conditions for the type of role that is being recruited for; and
• the levels of remuneration paid to existing Directors.
The committee would consider making available to new Executive Directors all those components of remuneration which are available to 
current Executive Directors. In the case of new Non-Executive Directors the Board would consider only offering a basic salary or director’s fee.
The committee would expect a new Executive Director to participate in the bonus scheme but does not propose to set a maximum bonus 
or commission that could be awarded.
Service contracts and payments for loss of office
It is the Company’s policy that each Executive Director has a service contract. For those Executive Directors who served during the year, 
the date of the contract is shown below together with the notice period from the Company:
Contract start date Unexpired term Notice period
J.H. Wassell 8 May 2008 Continuous Six months
C.R. Spicer 7 May 2008 Continuous Six months
J.M. Storey 10 December 2010 Continuous Six months
The service contracts of the current Executive Directors provide for the following payments in the event of contract termination:
Basic salary
Salary will be paid over the notice period. At its discretion, the Company has the option to make a payment in lieu of notice covering 
basic salary only.
Benefits
Benefits will normally be provided over the notice period. However, where termination is with immediate effect benefits are not included 
within any calculation of pay in lieu of notice.
Pension
Company pension contributions will normally be provided over the notice period. However, where termination is with immediate effect, 
pension contributions are not included within any calculation of pay in lieu of notice.
Bonus
There is no right to participate in or benefit from the bonus scheme in any year in which an Executive Director’s employment is terminated 
or during which he is under notice.
The committee considers it likely that any future Directors’ service contracts that will be entered into by the Company will contain the 
same provisions for compensation for loss of office as those in the current Directors’ service contracts.
The committee reserves the right to approve additional payments for loss of office should the particular circumstances mean that it is 
in the Company’s best interest to do so.
Notice periods
Directors’ notice periods are set in line with market practice and of a length sufficient to ensure an effective handover of duties in 
the event of a Director leaving the Company. Pay in lieu of notice can be paid at the Company’s discretion in full and final settlement 
of amounts due to the Director at termination of his employment only of his basic salary less PAYE deductions.
Directors’ Remuneration Report continued 23
Notice of meeting Governance Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
Policy Report continued
Share options
Under the terms of the EMI Share Option Plan, no employee has any right to compensation or damages on account of any loss in respect 
of the options where such loss arises from termination of employment. Options may not be exercised after an option holder ceases employment 
with the Company.
Remuneration scenarios
An indication of the possible level of remuneration that would be received by each Executive Director, rounded to the nearest thousand, in 
the year commencing 1 October 2016 in accordance with the Directors’ remuneration policy is shown below. The three scenarios presented 
for each Executive Director show an indication of the minimum remuneration receivable, the remuneration receivable if the Director and the 
Company are performing in line with expectations and the theoretical maximum remuneration receivable.
In the second scenario, referred to as “on-target” in the bar charts, the assumption is made that the Company performs in line with the 
current year and that the proportion of the total Executive Directors’ bonus is allocated to the individual Directors in the same proportion 
as the current year. The illustration of the bonus award has not been based on the Company’s future financial targets as in the opinion 
of the Directors this would result in the disclosure of commercially sensitive information.
In the third scenario, referred to as “maximum” in the bar charts, the assumption is made that the Company performs in line with the 
current year and that the Executive Director is awarded 100% of the total bonus available for that year. As in the “on-target” scenario, the 
illustration of the bonus award has not been based on the Company’s future financial targets as in the opinion of the Directors this would 
result in the disclosure of commercially sensitive information.
As described elsewhere in this report, the maximum bonus pool is calculated at 10% of the Company’s adjusted operating profit before 
taking account of the bonus. This is therefore also the maximum amount of bonus that can be awarded collectively to the Executive Directors 
in any one financial year. Should any Executive Director be awarded 100% of the total bonus as presented in the third scenario, the bonus 
awarded to all other Executive Directors would be nil. In reality this scenario would be unlikely to occur; however it has been presented 
to identify the theoretical maximum remuneration that could be received by each Director. As the bonus is based on the year’s adjusted 
operating profit, performance better or worse than the current year would increase or decrease the maximum accordingly.
Consideration of employment conditions elsewhere in the Group
The Company’s general policy for employee remuneration is stated above. In setting the policy for Director’s remuneration, the committee 
has been mindful of the Company’s policy on annual salary reviews and the range of benefits offered to employees more widely. 
No formal consultation has been undertaken with employees in drawing up the policy. The committee has not used formal remuneration 
comparison measurements.
Consideration of shareholder views
A resolution to approve the Directors’ Remuneration Report is tabled at the Company’s Annual General Meeting. Shareholders are provided 
with the opportunity to ask questions about Directors’ remuneration, as they are with any other areas of the report and accounts, during 
the meeting.
The committee is not aware of any specific views expressed by shareholders relating to Directors remuneration, nor have any specific 
shareholder views been taken into account by the Committee in formulating the Directors’ remuneration policy.
The Directors’ Remuneration Report was approved by the Board and signed on its behalf by:
Sir Michael Heller 
Director
19 December 2016
Minimum On-target Maximum
200
£’000
£’000
£’000
150
100
50
0
100% 71% 92%
29%
J.H. Wassell
Salary, benefit and pension Salary, benefit and pension Salary, benefit and pension Bonus Bonus Bonus
Minimum On-target Maximum
200
150
100
50
100% 92% 68%
32%
C.R.Spicer
Minimum On-target Maximum
200
150
100
50
0
100% 91% 65%
35%
J.M. Storey
£115,000
£125,500
£163,000
£100,000
£108,500
£148,000
£91,000
£99,500
£139,000
8%
8%
9%
0 24 Electronic Data Processing PLC Annual Report and Accounts 2016
Statement of Directors’ Responsibilities
in respect of the annual report and the financial statements
The Directors are responsible for preparing the annual report and the Group and Parent Company financial statements in accordance 
with applicable law and regulations.
Company law requires the Directors to prepare Group and Parent Company financial statements for each financial year. Under that law 
they are required to prepare the Group financial statements in accordance with IFRSs as adopted by the EU and applicable law and have 
elected to prepare the Parent Company financial statements in accordance with UK Accounting Standards, including FRS 101 Reduced 
Disclosure Framework.
Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of 
the state of affairs of the Group and Parent Company and of their profit or loss for that period. 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 IFRSs as adopted by the EU;
• for the Parent Company financial statements, state whether applicable UK Accounting Standards have been followed, subject to any 
material departures disclosed and explained in the Parent Company financial statements; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and the Parent 
Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Parent Company’s 
transactions and disclose with reasonable accuracy at any time the financial position of the Parent Company and enable them to ensure 
that its financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably 
open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors’ Report, Directors’ 
Remuneration Report and Corporate Governance Statement that comply with that law and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. 
Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 25
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
Independent Auditor’s Report
to the members of Electronic Data Processing PLC only
Opinions and conclusions arising from our audit
1 Our opinion on the financial statements is unmodified
We have audited the financial statements of Electronic Data Processing PLC for the year ended 30 September 2016 set out on pages 28 
to 66. In our opinion: 
• the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 30 September 2016 
and of the Group’s profit for the year then ended;
• the Group financial statements have been properly prepared in accordance with International Financial Reporting Standards as adopted 
by the European Union;
• the Parent Company financial statements have been properly prepared in accordance with UK Accounting Standards including FRS101 
Reduced Disclosure Framework; and 
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006 and, as regards the Group 
financial statements, Article 4 of the IAS Regulation. 
2 Our assessment of risks of material misstatement
In arriving at our audit opinion above on the financial statements the risks of material misstatement, in decreasing order of audit significance, 
that had the greatest effect on our audit were as follows (unchanged from 2015):
Revenue recognition (revenue £4,958,000; deferred income £2,097,000, 2015: revenue £5,157,000; deferred income £2,065,000)
Risk vs 2015: ◄►
Refer to page 15 (Audit Committee Report), page 33 (Accounting Policy) and page 43 (financial disclosures).
• The risk – The Group’s contracts with its customers involve the delivery of multiple services. Revenue recognition within the Group may 
require the separate recognition of revenue for each service on an appropriate basis including elements of up front recognition and the spreading 
of other revenues over the period of service, resulting in significant deferred income balances. Although the contracts entered into by the 
Group are of limited complexity and variety, there are a large number of transactions to be processed.
• Our response – In this area our audit procedures included: 
•  consideration of the appropriateness and consistency of the Group’s approach to allocating revenue to each component of a 
transaction using our sector knowledge and making an assessment of the margin recognised for each different component of revenue; 
• testing was designed to determine if several performance obligations exist within a contract that result in more than one component of 
revenue. Our audit procedures included the assessment of a sample of contracts using the guidance in the relevant accounting standard;
• testing of the design of controls over the allocation of revenue to separate components of the transaction and the allocation of revenue 
across periods; and 
• trend analysis on the amount of revenue and deferred revenue, the average life of customer contracts and the number of customers 
and recalculation of the deferred revenue balances.
We also confirmed the compliance of the Group’s disclosures in respect of amounts recognised as revenue and deferred revenue.
Defined Benefit Pension Scheme (Net liability: £3,883,000, 2015: net liability £2,265,000)
Risk vs 2015: ◄►
Refer to page 15 (Audit Committee Report), page 35 (Accounting Policy) and pages 45 to 47 (financial disclosures).
• The risk –The Group operates a defined benefit pension scheme. The closed scheme has an extremely small number of members (in terms 
of active and deferred members, and also those currently receiving pensions). An assessment of the underlying valuation of the scheme 
requires significant estimates to be applied, and, due to the small membership, a small change in certain of these estimates could have 
a material effect on the Group’s results and financial position.
• Our response – In this area our audit procedures included comparing the Group’s assumptions to market data as well as, with the support 
of our own actuarial specialist, our own assessments in relation to key inputs such as inflation rates, discount rates, increases in pay, increases 
in pension payments, increases for deferred pensioners and, in particular, mortality rates. We also assessed the adequacy of the Group’s 
disclosures in relation to the assumptions applied in determining the defined benefit liability.
Capitalised development costs (£381,000, 2015: £350,000)
Risk vs 2015: ◄►
Refer to page 15 (Audit Committee Report), page 34 (Accounting Policy) and page 42 (financial disclosures).
• The risk – Software project development costs are required to be capitalised (and subsequently amortised) if they meet the criteria of 
relevant accounting standards, which require, among other things, an assessment of the future out-turn of the project. These costs are 
otherwise expensed as incurred. The capitalisation criteria are inherently judgmental and there is a risk that qualifying projects may not 
be identified. There is also the risk that projects not meeting the relevant criteria are capitalised. Further, there is also a risk that costs 
attributable to such projects may be misstated. 26 Electronic Data Processing PLC Annual Report and Accounts 2016
Independent Auditor’s Report continued
to the members of Electronic Data Processing PLC only
Opinions and conclusions arising from our audit continued
2 Our assessment of risks of material misstatement continued
Capitalised development costs (£381,000, 2015: £350,000) continued
• Our response – Our audit procedures included analysis of the current year’s expensed costs to identify projects that have not been capitalised 
and obtaining and corroborating, for example by reference to publicly available information, such as product and upgrade release dates, the 
Group’s explanations for why such costs have not been capitalised. For qualifying projects we considered the Group’s assessment of their 
future technical and financial prospects by reference to our knowledge of the Group’s business and our experience of the industry; to critically 
assess the costs capitalised under such projects, we re-performed the Group’s calculation of staff costs attributable to qualifying projects, 
with reference to timesheets and payroll data where appropriate, and considered our analysis of projects not capitalised to identify any 
overlooked attributable costs. We also assessed the adequacy of the compliance of the Group’s disclosures in respect of capitalised 
development costs.
3 Our application of materiality and an overview of the scope of our audit
The materiality for the Group financial statements as a whole was set at £12,000 (2015: £13,850), determined with reference to a benchmark 
of Group profit before taxation (of which it represents 5.0%, 2015: 4%).
We reported to the Audit Committee any corrected and uncorrected identified misstatements exceeding £600 (2015: £690) in addition 
to other identified misstatements that warranted reporting on qualitative grounds.
Audits for Group reporting purposes were performed by the Group audit team at all 5 of the Group’s reporting components, all of which 
are in the UK. These audits covered 100% of: total Group revenue, Group profit before taxation and total Group assets. Component materiality 
levels were set individually for each component having regard to the mix of size and risk profile of the Group across the components, and 
ranged from £1,500 to £12,000 (2015: £1,500 to £13,850).
4 Our opinion on other matters prescribed by the Companies Act 2006 is unmodified 
In our opinion:
• the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006; and
• the information given in the Strategic Report and the Directors’ Report for the financial year for which the financial statements are prepared 
is consistent with the financial statements; and
• the information given in the Corporate Governance Statement set out on pages 12 to 14 with respect to internal control and risk management 
system in relation to financial reporting processes and about share capital structures is consistent with the financial statements.
5 We have nothing to report on the disclosures of principal risks
Based on the knowledge we acquired during our audit, we have nothing material to add or draw attention to in relation to:
• the directors’ Viability Statement on page 13, concerning the principal risks, their management, and, based on that, the directors’ 
assessment and expectations of the group’s continuing in operation over the three years to September 2019; or 
• the disclosures on page 13 of the financial statements concerning the use of the going concern basis of accounting.
6 We have nothing to report in respect of matters on which we are required to report by exception
Under ISAs (UK and Ireland) we are required to report to you if, based on the knowledge we acquired during our audit, we have identified 
other information in the annual report that contains a material inconsistency with either that knowledge or the financial statements, a material 
misstatement of fact, or that is otherwise misleading.
In particular, we are required to report to you if: 
• we have identified material inconsistencies between the knowledge we acquired during our audit and the Directors’ statement that they 
consider that the annual report and financial statements taken as a whole is fair, balanced and understandable and provides the information 
necessary for shareholders to assess the Group’s position and performance, business model and strategy; or
• the Audit Committee Report does not appropriately address matters communicated by us to the audit committee.
Under the Companies Act 2006 we are required to report to you if, in our opinion:
• adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from 
branches not visited by us; or
• the Parent Company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with 
the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made;
• we have not received all the information and explanations we require for our audit; or
• a Corporate Governance Statement has not been prepared by the company. 27
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
Opinions and conclusions arising from our audit continued
6 We have nothing to report in respect of matters on which we are required to report by exception continued
Under the Listing Rules we are required to review:
• the Directors’ statement, set out on page 13, in relation to going concern and longer term viability; and
• the part of the Corporate Governance Statement on pages 12 to 14 relating to the Company’s compliance with the eleven provisions of the 
2014 UK Corporate Governance Code specified for our review.
We have nothing to report in respect of the above responsibilities.
Scope and responsibilities
As explained more fully in the Directors’ Responsibilities Statement set out on page 24, the Directors are responsible for the preparation of the 
financial statements and for being satisfied that they give a true and fair view. A description of the scope of an audit of financial statements 
is provided on the Financial Reporting Council’s website at www.frc.org.uk/auditscopeukprivate. This report is made solely to the Company’s 
members as a body and is subject to important explanations and disclaimers regarding our responsibilities, published on our website at 
www.kpmg.com/uk/auditscopeukco2014a, which are incorporated into this report as if set out in full and should be read to provide an 
understanding of the purpose of this report, the work we have undertaken and the basis of our opinions.
David Morritt (Senior Statutory Auditor)
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
1 Sovereign Square
Sovereign Street
Leeds
LS1 4DA
19 December 2016 28 Electronic Data Processing PLC Annual Report and Accounts 2016
Consolidated Income Statement
for the year ended 30 September 2016
2016 2015
Note £’000 £’000
Revenue 3 4,958 5,157 
Gross profit 4,675 4,758 
Administrative expenses (4,368) (4,381)
One-off property costs 3 (104) —
Total administrative expenses (4,472) (4,381)
Operating profit 4 203 377 
Profit on sale of property — 117 
Write-down of property value (10) (189)
Finance income 51 42 
Profit before tax 244 347 
Income tax expense 7 (86) (43)
Profit for the period attributable to equity holders of the Parent 158 304
Earnings per share 
– Basic 8 1.25p 2.41p
– Diluted 8 1.24p 2.39p 29
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
Consolidated Statement of Comprehensive Income
for the year ended 30 September 2016
2016 2015
£’000 £’000
Profit for the period 158 304 
Other comprehensive income
Items that will not be reclassified to profit or loss:
Remeasurement losses on defined benefit pension scheme (1,534) (213)
Income tax on other comprehensive income 238 43 
Other comprehensive income for the period, net of tax (1,296) (170)
Total comprehensive income for the period attributable to equity holders of the Parent (1,138) 134  30 Electronic Data Processing PLC Annual Report and Accounts 2016
Consolidated Balance Sheet
at 30 September 2016
2016 2015
Note £’000 £’000
Non-current assets
Property, plant and equipment 10 1,343 2,545 
Deferred tax asset 21 660 453 
Intangible assets 11 464 431 
2,467 3,429 
Current assets
Inventories 12 79 64 
Trade and other receivables 13 1,237 1,445 
Investments 14 3,500 3,000 
Cash and cash equivalents 15 1,902 2,547 
Assets held for sale 16 1,167 —
7,885 7,056 
Total assets 10,352 10,485 
Current liabilities
Deferred income 17 (2,055) (2,008)
Income tax payable (87) (79)
Trade and other payables 18 (1,009) (1,000)
(3,151) (3,087)
Non-current liabilities
Deferred income 17 (42) (57)
Employee benefits 20 (3,883) (2,265)
Deferred tax liability 21 (82) (115)
(4,007) (2,437)
Total liabilities (7,158) (5,524)
Net assets 3,194 4,961 
Equity
Share capital 22 689 689 
Share premium 119 119 
Capital redemption reserve 625 625 
Treasury shares 22 (587) (587)
Retained earnings 2,348 4,115 
Total equity attributable to equity holders of the Parent 3,194 4,961 
These financial statements were approved by the Board of Directors on 19 December 2016 and were signed on its behalf by:
Sir Michael Heller Julian Wassell Electronic Data Processing PLC, registered number 853560
Directors  31
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
Consolidated Statement of Changes in Equity
for the year ended 30 September 2016
Capital
Share Share redemption Treasury Retained
capital premium reserve shares earnings Total
£’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 October 2014 689 119 625 (587) 4,496 5,342 
Profit for the period — — — — 304 304 
Other comprehensive income:
–  remeasurement loss on defined benefit pension 
scheme net of tax — — — — (170) (170)
Total comprehensive income — — — — 134 134 
Transactions with owners:
–  share-based payment transactions — — — — 1 1 
–  deferred tax on share-based payment transactions — — — — (12) (12)
–  dividends paid — — — — (504) (504)
Total transactions with owners — — — — (515) (515)
Balance at 30 September 2015 689 119 625 (587) 4,115 4,961 
Capital
Share Share redemption Treasury Retained
capital premium reserve shares earnings Total
£’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 October 2015 689 119 625 (587) 4,115 4,961 
Profit for the period — — — — 158 158 
Other comprehensive income:
–  remeasurement loss on defined benefit pension 
scheme net of tax — — — — (1,296) (1,296)
Total comprehensive income — — — — (1,138) (1,138)
Transactions with owners:
–  deferred tax on share-based payment transactions — — — — 2 2 
–  dividends paid — — — — (631) (631)
Total transactions with owners — — — — (629) (629)
Balance at 30 September 2016 689 119 625 (587) 2,348 3,194  32 Electronic Data Processing PLC Annual Report and Accounts 2016
Consolidated Cash Flow Statement
for the year ended 30 September 2016
2016 2015
£’000 £’000
Cash flows from operating activities
Profit for the period 158 304 
Adjustments for:
Depreciation 211 228 
Amortisation 129 81 
Profit on disposal of property, plant and equipment (11) (120)
Write-down of property value 10 189 
Transfer of inventory to property, plant and equipment (5) (2)
Defined benefit pension charge net of employer contributions 84 77 
Finance income (51) (42)
Income tax expense 86 43 
Change in inventories (15) 3 
Change in receivables 223 124 
Change in payables 9 (68)
Change in deferred income 32 134 
Equity settled share-based payment transactions — 1 
Cash received from operations 860 952 
Interest received 36 19 
Income taxes paid (78) (5)
Net cash from operating activities 818 966 
Cash flows from investing activities
Purchase of property, plant and equipment (198) (167)
Purchase of intangible assets (35) (17)
Capitalised development expenditure (127) (139)
Proceeds from sale of property, plant and equipment 28 424 
Net cash (used in)/generated by investing activities (332) 101 
Cash flows from financing activities
Transfers to fixed-term deposit investments (500) (3,000)
Dividends paid (631) (504)
Net cash used in financing activities (1,131) (3,504)
Net decrease in cash and cash equivalents (645) (2,437)
Cash and cash equivalents at beginning of period 2,547 4,984 
Cash and cash equivalents at end of period (note 15) 1,902 2,547 33
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
Notes to the Consolidated Financial Statements
(forming part of the financial statements)
1. Reporting entity
Electronic Data Processing PLC is a public limited company listed on the London Stock Exchange and incorporated and domiciled in England. 
The principal activity of the Company is the provision of computer software solutions.
The address of the Company’s registered office is 4th Floor, Fountain Precinct, Balm Green, Sheffield S1 2JA.
Statement of compliance
The Group’s financial statements have been prepared and approved by the Directors in accordance with International Financial Reporting 
Standards as adopted by the EU (“Adopted IFRS”) as they apply to the financial statements of the Group for the year ended 30 September 2016 
and applied in accordance with the provisions of the Companies Act 2006. The principal accounting policies of the Group are set out in note 2. 
The Company has elected to prepare its Parent Company financial statements in accordance with FRS 101.
The Company is taking advantage of the exemption in s408 of the Companies Act 2006 not to present its individual income statement and 
related notes.
2. Significant accounting policies
The significant accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented 
in these Group financial statements.
Basis of preparation
The financial statements have been prepared in accordance with Adopted IFRS and under the historical cost basis except as described 
elsewhere in note 2.
Basis of consolidation
The consolidated financial statements incorporate the accounts of Electronic Data Processing PLC and all its subsidiaries. Such accounts 
are all made up to 30 September 2016.
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating 
policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable 
are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that 
control commences until the date that control passes. Intragroup balances, and any unrealised gains and losses or income and expenses 
arising from intragroup transactions, are eliminated in preparing the consolidated financial statements.
Functional and presentational currency
The financial statements are presented in sterling, which is the Group’s presentational currency. The Parent Company’s functional 
currency is sterling. All financial information presented in sterling has been rounded to the nearest thousand.
Foreign currency
Sales to overseas customers which are denominated in foreign currencies are translated into sterling at the exchange rate ruling at the date 
of the transaction. Monetary assets resulting from sales denominated in foreign currencies at the balance sheet date are retranslated into 
sterling at the exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement.
Revenue
The Group’s revenues derive from a number of sources which are described below. All revenue excludes value added tax and any sales 
between Group companies. Revenue relating to future periods is deferred. Revenue is recognised to the extent that it is probable the 
economic benefits will flow to the Group and the revenue can be reliably measured.
The Group’s software revenues derive from its software licensing contracts and software hosting agreements.
Revenue from new software licences, which typically run for between three and five years, is broken down into two components, namely 
an initial licence fee and ongoing software usage charges. Initial licence fee revenue is recognised in full on delivery of the software to the 
customer following receipt of a non-cancellable contract. The Group considers that at this point a significant proportion of the risks and 
rewards of ownership of the licence have been transferred to the customer. Software usage charges, which reflect the Group’s ongoing 
requirement to maintain and support the software, are recognised on a straight line basis as the remaining risks and rewards of ownership 
are transferred to the customer over the contract term.
Revenue from the Group’s hosting contracts, which also run for between three and five years, derive from upfront hosting charges and 
periodic hosting fees. Upfront hosting charges primarily reflect the hardware and software set-up costs incurred on commencement of 
a new contract. These charges are recognised as revenue once a customer is provided access to their hosted server following receipt 
of a signed non-cancellable contract. Periodic hosting fees are recognised evenly over the contract term, reflecting the Group’s obligation 
to maintain provision of the hosted service throughout the contract period.
Other software related revenues are mainly from the provision of professional services including implementation, training and consultancy. 
This revenue is recognised when the services have been performed. Sales of computer equipment are recognised on delivery to 
customers and equipment maintenance charges are recognised evenly over the period to which they relate. 34 Electronic Data Processing PLC Annual Report and Accounts 2016
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
2. Significant accounting policies continued
Property, plant and equipment
Property, plant and equipment is stated at cost or deemed cost less accumulated depreciation and impairment losses. Land is not depreciated. 
The Directors assess the residual values and useful economic lives of the properties on an annual basis. Depreciation is provided so as to 
write off the cost, or deemed cost, less the estimated residual value of each asset in equal instalments over its estimated useful life from 
the time it becomes operational, at the following rates:
Freehold property   – 1 to 2%
Motor vehicles    – 20 to 33%
Fixtures, fittings and equipment – 15 to 25%
Software intellectual property rights
Assets are initially carried at cost, including any incidental expenses of acquisition. Following initial recognition, they are carried at cost 
less any accumulated amortisation and accumulated impairment losses. Software intellectual property rights are amortised over a period 
of between three and ten years on a straight line basis and amortised from the time the software is brought into use.
Research and development
Expenditure on research activities, undertaken with the prospect of gaining new technical knowledge and understanding, is recognised 
in the income statement as incurred.
Development activities involve a plan or design for the production of new or substantially improved products and processes. Development 
expenditure is capitalised only if development costs can be measured reliably, the product or process is technically and commercially feasible, 
future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the 
asset. The expenditure capitalised includes the cost of materials, direct labour and overheads that are directly attributable to preparing the 
asset for its intended use. Other development expenditure not meeting these criteria is recognised in the income statement as incurred.
Capitalised development expenditure is measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is based on the cost of an asset less its residual value. Capitalised software development costs are amortised over a period 
of between three and seven years on a straight line basis and amortised from the time the asset becomes available for use.
Inventories
Inventories are valued at the lower of purchase cost and net realisable value.
Trade and other receivables
Trade receivables, which generally have terms of up to 30 days, are recognised and carried at original invoice amount less an allowance 
for any uncollectable amounts. Provision is made where there is objective evidence that the Group will not be able to collect part or all 
of a debt. Bad debts are written off as identified.
Cash and cash equivalents
Cash and cash equivalents at the balance sheet date comprise cash on hand and short-term deposits, net of bank overdrafts.
Investments
Investments at the balance sheet date comprise fixed-term bank deposits which have a maturity at acquisition greater than three months.
Assets held for sale
A non-current asset is classified as held for sale if, at the balance sheet date, its carrying value will be recovered principally through sale 
rather than through continuing use, it is available for immediate sale and that sale is highly probable within one year. On initial classification 
as held for sale, non-current assets are measured at the lower of previous carrying amount and fair value less costs to sell, with any adjustments 
taken to the income statement. The same applies to gains and losses subsequent to remeasurement.
Leasing transactions
Operating lease rentals are charged to the income statement on a straight line basis over the period of the lease.
Deferred income
Deferred income represents that portion of licence fees, hosting charges and maintenance contracts taken out by customers but which 
relate to a future period.
Taxes
Tax on the Group’s profit or loss for the period comprises current and deferred tax. Tax is recognised in the income statement except 
to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance 
sheet date, and any adjustments to tax payable in respect of prior years.
Deferred tax is provided on the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes 
and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement 
of the carrying amounts of assets and liabilities using tax rates enacted or substantively enacted at the balance sheet date. 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. 35
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
2. Significant accounting policies continued
Employee benefits – pensions
The Group operates both defined contribution and defined benefit pension schemes. The premiums relating to defined contribution 
schemes are charged to the income statement in the period in which they accrue.
The Group’s net obligation in respect of its defined benefit pension scheme is calculated by estimating the amount of future benefit that 
employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value, 
and the fair value of the scheme assets is deducted. The calculation is performed by a qualified actuary using the projected unit credit method.
Remeasurement gains and losses arising from changes in actuarial assumptions, plan experience and differences between the expected 
and actual return on plan assets are recognised in “other comprehensive income” in the statement of comprehensive income in the year 
in which they occur.
All other movements in the pension asset or liability are recognised in the income statement for the relevant period.
Share-based payment transactions
The Company operates a share option scheme for certain employees. The fair value of the share options is calculated at the date of grant 
using a Black-Scholes model. The fair value is then recognised as an employee expense on a straight line basis over the vesting period 
with a corresponding increase in equity.
Equity
The nature and purpose of each reserve included within equity is as follows:
Share capital
The balance classified as share capital includes the nominal value on issue of the Company’s equity share capital, comprising 5p ordinary shares.
Share premium
The balance classified as share premium represents the premium paid on the issue of the Company’s equity share capital.
Capital redemption reserve
The balance classified as capital redemption reserve represents the nominal value of issued share capital repurchased by the Company.
Treasury shares
When share capital recognised as equity is repurchased, the amount of the consideration paid, which includes directly attributable costs, 
net of any tax effects, is recognised as a deduction from equity. Repurchased shares classified as treasury shares are presented as a deduction 
from equity. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity, and the 
resulting surplus or deficit on the transaction is transferred to or from retained earnings.
Significant judgements and estimates
Judgements and estimates made by the Directors in the application of these accounting policies may have a significant effect on the financial 
statements with a significant risk of material adjustment in the next year. The main areas of estimation and accounting judgement are:
Employee benefits
The calculation of the deficit or surplus on the Group’s defined benefit pension scheme is based on a number of actuarial assumptions 
including discount rate, future rate of inflation and future changes in mortality rates. These assumptions are reviewed regularly by the 
Directors with the scheme actuary.
Software intellectual property rights
The Group reviews annually the carrying value of assets to determine if there has been any impairment. These reviews require the use 
of estimates of the future cash flows generated by the asset.
Freehold property valuation and classification
The Group’s freehold property is stated at cost or deemed cost less accumulated depreciation and impairment losses. The Directors 
make judgements annually about the carrying value of freehold property and make estimates of residual values and useful economic lives. 
They also apply judgement about the likely timing of future disposals when determining which of the Group’s vacant properties should 
be reclassified as an asset held for sale.
Development costs
The Directors review annually the Group’s software development projects and assess which of those projects qualify for capitalisation 
under IAS 38. An assessment is made of projects capitalised in prior periods to determine if there has been any impairment.
Revenue recognition
The key area of judgement in respect of revenue recognition is the timing of recognition of software licensing and hosting revenues which 
involves assessing which revenues are recognised immediately and which are deferred and recognised over time. 36 Electronic Data Processing PLC Annual Report and Accounts 2016
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
2. Significant accounting policies continued
Financial risk management 
The Group has exposure to the following risks from its use of financial instruments:
• credit risk;
• liquidity risk; and
• market risk.
This note presents material information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and 
procedures for measuring and managing risk, and the Group’s management of capital. Further quantitative disclosures are included 
throughout these financial statements.
The Board of Directors has overall responsibility for the establishment and overseeing of the Group’s risk management framework. The Group’s 
risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, 
and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market 
conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined 
and constructive control environment in which all employees understand their roles and obligations.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual 
obligations and arises principally from the Group’s receivables from customers and investments. The Group’s exposure to credit risk 
is influenced mainly by the individual characteristics of each customer and also the markets in which they operate.
The Group is not exposed through a significant volume of sales transactions with any single customer. All new customers are reviewed 
before the Group’s standard payment and delivery terms and conditions are offered. The Group establishes an allowance for impairment 
that represents its estimate of incurred losses in respect of trade and other receivables on a line by line basis.
The Group limits its exposure to credit risk by only investing surplus cash in recognised UK-based banks.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group is currently debt free and 
has significant cash resources. It therefore considers the risk to be low at the present time. The Group does not trade in financial instruments.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange and interest rates, will affect the Group’s income or the 
value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures 
within acceptable parameters, while optimising the return.
The Group has a small number of customers based in the US who are invoiced in US dollars along with a small number of European-based 
customers who are invoiced in euros.
As these revenues represent approximately 2% of total turnover, the Group does not enter into any hedging transactions. All other Group 
sales to overseas customers are denominated in sterling and therefore they do not present a foreign currency risk. The Group does not have 
any significant monetary assets and liabilities that are not denominated in the functional currency of the operating unit involved.
As the Group has significant cash deposits, changes in interest rates could have a significant impact on the Group’s results.
Capital management
The Board’s policy is to maintain a strong capital base, defined as total equity, so as to maintain investor, creditor and market confidence 
and to sustain future development of the business.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements. 37
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
2. Significant accounting policies continued
New standards not applied 
The IASB has issued the following standards with an effective date after the date of these financial statements and early adoption has not 
been applied:
Effective for accounting
periods beginning on or after 
International Accounting Standards (IFRS/IAS)
IFRS 2 (amended June 2016) Share-based Payment 1 January 2018
IFRS 4 (amended September 2016) Insurance Contracts 1 January 2018
IFRS 9 Financial Instruments 1 January 2018
IFRS 10 (amended December 2014) Consolidated Financial Statements 1 January 2016
IFRS 11 (amended May 2014) Joint Arrangements 1 January 2016
IFRS 12 (amended December 2014) Disclosure of Interests in Other Entities 1 January 2016
IFRS 14 Regulatory Deferral Accounts 1 January 2016
IFRS 15 Revenue from Contracts with Customers 1 January 2018
IFRS 16 Leases 1 January 2019
IAS 1 (amended December 2014) Presentation of Financial Statements 1 January 2016
IAS 7 (amended January 2016) Statement of Cash Flows 1 January 2017
IAS 12 (amended January 2016) Income Taxes 1 January 2017
IAS 16 (amended May and June 2014) Property, Plant and Equipment 1 January 2016
IAS 27 (amended August 2014) Separate Financial Statements 1 January 2016
IAS 28 (amended December 2014) Investments in Associates and Joint Ventures 1 January 2016
IAS 38 (amended May 2014) Intangible Assets 1 January 2016
IAS 41 (amended June 2014) Agriculture 1 January 2016
Amendents resulting from September 2014 Annual Improvements to IFRSs 1 January 2016
The Directors are currently assessing the likely impact that adoption of IFRS 15 Revenue from Contracts with Customers will have 
on the Group’s financial statements in the period of initial application.
It is not anticipated that application of the remaining new standards, interpretations and amendments to existing standards will have 
a material effect on the Group’s financial statements when first applied.
3. Segmental analysis
The Group has identified its reportable segment based on the financial reports that internally are provided to the Group’s chief operating 
decision maker (CODM). In line with its management structure, the Executive Directors collectively make the key operating decisions 
and review internal monthly management accounts and budgets as part of this process. Accordingly, the Executive Directors collectively 
are considered to be the CODM. The information reported regularly to the CODM presents the Group as a single segment supplying 
software and related services to customers operating in similar markets. The Group’s software products share a common sales, development 
and implementation resource. Consequently the Group has determined that there is one operating segment and therefore one reportable 
segment, Software. 
Segment performance is measured based on segment profit before tax excluding IAS 19 defined benefit pension scheme adjustments 
and profits or losses on property disposals or revaluations.  38 Electronic Data Processing PLC Annual Report and Accounts 2016
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
3. Segmental analysis continued
Software Software 
2016 2015 
£’000 £’000 
Revenue – external customers 4,958 5,157 
Profit
Adjusted operating profit 430 459
Restructuring costs — (76)
Exceptional legal and professional costs (62) —
Segment non-cash net IFRS credit 23 71 
Interest revenue 51 42 
Segment profit before tax 442 496
Profit on sale of property — 117
One-off property costs – roof repair (104) —
Write-down of property value (10) (189)
Defined benefit pension scheme charge net of employer contributions (84) (77)
Consolidated profit before tax 244 347 
Other segment items
Interest revenue 51 42
Depreciation and amortisation 340 309
Capital expenditure 233 184
Geographical analysis
Geographical segment revenues, based on the geographical location of customers, are as follows:
2016 2015 
Revenue by destination £’000 £’000 
United Kingdom 4,800 4,985
Rest of the world 158 172
4,958 5,157
All of the Group’s non-current assets are located in the United Kingdom.
4. Operating profit
2016 2015 
This is stated after charging: £’000 £’000 
Depreciation 211 228
Amortisation of intangible assets 129 81
Operating lease rentals: 
– plant and machinery 50 43 
– property 106 100 
Research and development expenditure 855 928 
5. Auditor’s remuneration
Amounts payable to the auditor in respect of both audit and non-audit services was as follows:
2016 2015
£’000 £’000 
Audit of these financial statements 19 18 
Audit of financial statements of subsidiaries 12 12 
Taxation services 13 14 
Other services 6 6 
50 50  39
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Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
6. Employee information
The average number of persons employed by the Group (including Executive Directors) during the year, analysed by category, was as follows:
Number of employees
2016 2015
Sales and administration 18 17 
Support, development and network services 50 49 
68 66 
The aggregate payroll costs of these persons were as follows:
2016 2015
£’000 £’000
Salaries 2,608 2,636
Social security costs 316 310
Other pension costs 89 83
Equity settled share-based payment transactions — 1
3,013 3,030 
Aggregate Directors’ emoluments amounted to £385,721 (2015: £414,852). Details of Directors’ remuneration are given in the Directors’ 
Remuneration Report. Retirement benefits are accruing to three Directors (2015: three) under money purchase pension schemes and one 
Director (2015: one) under defined benefit pension schemes. The total amount contributed by the Group in respect of the money purchase 
schemes was £21,850 (2015: £23,937). 
7. Income tax
Income tax expense comprises:
2016 2015
£’000 £’000
Current tax
United Kingdom corporation tax 87 79 
Tax over provided in prior years — (12)
Group current tax 87 67 
Deferred tax
Origination and reversal of temporary differences (31) (24)
Effect of decrease in the tax rate 30 —
Group deferred tax (1) (24)
Income tax expense 86 43 
Factors affecting the tax charge for the year
The tax assessed for the year differs from the standard rate of corporation tax in the UK of 20% (2015: 20.5%). The differences are 
explained below:
2016 2015
£’000 £’000
Profit before tax 244 347 
Profit multiplied by standard rate of corporation tax of 20% (2015: 20.5%) 49 71 
Effects of:
Expenses not deductible for tax purposes 7 15 
Non-taxable income — (31)
Corporation tax – adjustment in respect of prior periods — (12)
Deferred tax – effect of rate change 30 —
Total income tax expense 86 43 
The Group has not recognised as a deferred tax asset the potential value of its available capital loss of £368,000 (2015: £368,000) 
because there is no foreseeable prospect of its utilisation. 40 Electronic Data Processing PLC Annual Report and Accounts 2016
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
7. Income tax continued
Factors affecting future tax charges
Legislation has been passed which reduces the rate of corporation tax to 19% from 1 April 2017 and to 17% from 1 April 2020. 
These reductions will reduce the Group’s future current tax charge accordingly.
The Group had no unutilised trading tax losses carried forward at 30 September 2016 (2015: £nil).
8. Earnings per share
Basic earnings per share 
Earnings per share is calculated by dividing the profit for the period attributable to equity holders of the Parent of £158,000 (2015: £304,000) 
by 12,610,976 (2015: 12,610,976), being the weighted average number of shares in issue during the year.
Basic earnings per share is 1.25p (2015: 2.41p).
Diluted earnings per share 
For diluted earnings per share, the weighted average number of shares in issue is adjusted to assume conversion of all dilutive potential 
ordinary shares. The Company has one class of dilutive potential ordinary share which is share options granted to employees under its 
Enterprise Management Incentive Share Option Plan. These shares have been included in the diluted earnings per share calculation.
Diluted earnings per share is calculated by dividing the profit after tax of £158,000 (2015: £304,000) by 12,742,107 (2015: 12,745,733), 
being the weighted average number of shares in issue adjusted for the effects of all dilutive potential ordinary shares.
The weighted average number of shares has been calculated as follows:
2016 2015
Number Number
Weighted average number of ordinary shares (basic) 12,610,976 12,610,976
Effect of outstanding share options 131,131 134,757
Weighted average number of ordinary shares at 30 September 12,742,107 12,745,733
Diluted earnings per share is 1.24p (2015: 2.39p).
9. Dividends paid and proposed
The following dividends were declared and paid during the year:
2016 2015
£’000 £’000
Final dividend for 2015 – 3.0p (2014: 2.0p) 379 252
Interim dividend for 2016 – 2.0p (2015: 2.0p) 252 252
631 504 
Proposed for approval by shareholders at the AGM
Final dividend for 2016 – 3.0p (2015: 3.0p) 379 379 41
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Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
10. Property, plant and equipment
Fixtures, 
Freehold Motor fittings and
property vehicles equipment Total
£’000 £’000 £’000 £’000
Cost 
At 1 October 2015 2,414 238 1,898 4,550 
Additions — 34 164 198 
Transfer to assets held for sale (1,423) — — (1,423)
Transfers from stock — — 6 6 
Disposals — (65) (284) (349)
At 30 September 2016 991 207 1,784 2,982 
Depreciation
At 1 October 2015 449 147 1,409 2,005 
Charge for the year 10 42 159 211 
Transfer to assets held for sale (246) — — (246)
Transfers from stock — — 1 1 
Disposals — (54) (278) (332)
At 30 September 2016 213 135 1,291 1,639 
Net book value
At 30 September 2016 778 72 493 1,343 
Cost 
At 1 October 2014 2,811 270 1,841 4,922 
Additions — — 167 167 
Disposals (397) (32) (110) (539)
At 30 September 2015 2,414 238 1,898 4,550 
Depreciation
At 1 October 2014 325 128 1,372 1,825 
Charge for the year 32 48 148 228 
Write-down 189 — — 189 
Transfers to stock — — (2) (2)
Disposals (97) (29) (109) (235)
At 30 September 2015 449 147 1,409 2,005 
Net book value
At 30 September 2015 1,965 91 489 2,545  42 Electronic Data Processing PLC Annual Report and Accounts 2016
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
11. Intangible assets 
Software 
intellectual Development
property rights costs Total
£’000 £’000 £’000
Cost
At 1 October 2015 1,859 486 2,345 
Additions – internally developed — 127 127 
Additions – purchased 35 — 35 
Deletions — (5) (5)
At 30 September 2016 1,894 608 2,502 
Amortisation 
At 1 October 2015 1,778 136 1,914 
Charge for the year 33 96 129 
Deletions — (5) (5)
At 30 September 2016 1,811 227 2,038 
Net book value 
At 30 September 2016 83 381 464 
Cost
At 1 October 2014 1,842 347 2,189 
Additions – internally developed — 139 139 
Additions – purchased 17 — 17 
At 30 September 2015 1,859 486 2,345 
Amortisation 
At 1 October 2014 1,763 70 1,833 
Charge for the year 15 66 81 
At 30 September 2015 1,778 136 1,914 
Net book value 
At 30 September 2015 81 350 431 
12. Inventories 
2016 2015
£’000 £’000 
Computer equipment 79 64 
13. Trade and other receivables
2016 2015
£’000 £’000 
Trade receivables 937 1,125 
Other receivables 300 320 
1,237 1,445 
14. Investments
2016 2015
£’000 £’000 
Fixed-term bank deposits – maturity longer than three months 3,500 3,000  43
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Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
15. Cash and cash equivalents
2016 2015
£’000 £’000 
Bank balances 196 159
Short-term deposits 1,706 2,388
1,902 2,547
16. Assets held for sale
2016 2015
£’000 £’000 
At 1 October — —
Transferred from property, plant and equipment 1,177 —
Write-down (10) —
At 30 September 1,167 —
The asset held for sale at 30 September 2016 is the Group’s vacant property at Milton Keynes. The sale of this property completed 
on 13 December 2016. 
17. Deferred income
This represents the portion of annual licence fees, hosting charges and maintenance contracts taken out by customers but which relate 
to a future period.
2016 2015
£’000 £’000 
To be recognised:
– within one year 2,055 2,008 
– after more than one year 42 57 
2,097 2,065 
18. Trade and other payables
2016 2015
£’000 £’000 
Trade payables 470 438 
Other payables 539 562 
1,009 1,000 
19. Financial instruments
The Group’s financial instruments comprise cash and liquid resources, and various items, such as trade receivables, trade payables, etc., 
that arise directly from its operations. There is no material difference between book value and fair value of these financial instruments.
Short-term bank deposits are invested at a variable interest rate based on base rate. This position is constantly monitored by the Board.
The Group also invests surplus cash in fixed-term deposit accounts. Interest rates on these investments are fixed for the duration of the term.
Undrawn committed facilities
At 30 September 2016 the Group had no undrawn committed borrowing facilities (2015: £nil).
Credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting 
date was:
Carrying amount
2016 2015
£’000 £’000
Trade receivables 937 1,125
Investments 3,500 3,000
Cash and cash equivalents 1,902 2,547
6,339 6,672 44 Electronic Data Processing PLC Annual Report and Accounts 2016
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
19. Financial instruments continued
Credit risk continued
The ageing of trade receivables at the reporting date was:
 
2016 2015
Gross Impairment Gross Impairment 
£’000 £’000 £’000 £’000
Not past due 675 — 612 —
Past due 0–30 days 134 1 337 1
Past due 31–120 days 33 1 108 1
Past due 121–360 days 43 1 44 6
More than one year 110 55 78 46
995 58 1,179 54
The movement in the allowance for impairment in respect of trade receivables during the year was as follows:
2016 2015
£’000 £’000
Balance at 1 October 54 85
Reversal of prior year impairment losses (10) (16)
Previously impaired balances written off (18) (28)
Impairment loss recognised 32 13 
Balance at 30 September 58 54
The impairment loss for the year relates to specific customers who have purchased software solutions and management considers there 
to be a risk in collecting the outstanding balances. 
There is no additional risk that warrants disclosure concerning trade receivables that are neither past due nor impaired.
Liquidity risk
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact 
of netting agreements:
At 30 September 2016
Carrying Contractual 6 months More than
amount cash flows or less 6–12 months one year
£’000 £’000 £’000 £’000 £’000
Trade and other payables 1,009 1,009 1,009 — —
Income tax payable 87 87 — 87 —
Deferred income 2,097 — 1,475 580 42
3,193 1,096 2,484 667 42
At 30 September 2015
Carrying Contractual 6 months More than
amount cash flows or less 6–12 months one year
£’000 £’000 £’000 £’000 £’000
Trade and other payables 1,000 1,000 1,000 — —
Income tax payable 79 79 — 79 —
Deferred income 2,065 — 1,421 587 57
3,144 1,079 2,421 666 57 45
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
19. Financial instruments continued
Interest rate risk 
At the reporting date the Group’s interest bearing financial instruments were: 
Carrying amount 
2016 2015
£’000 £’000
Fixed-term deposits 3,500 3,000
Variable-rate cash deposits 1,902 2,547
5,402 5,547
Sensitivity analysis
The majority of cash balances throughout the year are held on deposit at competitive market rates. A 0.25% fluctuation in interest rates 
on all deposits held at the year end would have an approximate impact of £14,000 (2015: £14,000) on finance income with a corresponding 
£3,000 (2015: £3,000) impact on income tax expense.
20. Employee benefits – pensions
The Group operates both defined benefit and defined contribution pension schemes.
Defined contribution pension schemes
The Group operates a number of defined contribution pension schemes, the principal scheme being a grouped personal pension scheme 
through an insurance company. The pension costs of these arrangements were £75,000 (2015: £70,000). Outstanding contributions at the 
end of the year were £13,000 (2015: £13,000).
Defined benefit pension scheme
The Group sponsors the Electronic Data Processing PLC Pension and Life Assurance Scheme which is a funded defined benefit 
arrangement. This is a separate trustee administered fund holding the pension scheme assets to meet long-term pension liabilities for 
the members. The scheme entitles a retired member to receive an annual pension equal to 1/60 of final salary for each year of service 
that the member provided.
The scheme closed to future accrual on 31 August 2014. 
The scheme exposes the Group to actuarial risks such as investment risk, interest rate risk and longevity risk. A decrease in corporate 
bond yields, a rise in inflation or an increase in life expectancy would result in an increase to scheme liabilities. This would detrimentally 
impact the balance sheet position and may give rise to increased charges in future income statements.
The last full actuarial valuation of the scheme was performed at 31 July 2013 by a professionally qualified actuary. This scheme funding 
valuation showed a surplus of £62,000 at that date.
Members have paid contributions at a rate in line with the recommendations of the actuary over the accounting period.
The full actuarial valuation of the Scheme was updated on an IAS 19 basis at 30 September 2016 by JLT Benefit Solutions Limited using 
the following assumptions:
2016 2015 2014
Inflation rate 2.1% 2.2% 2.3%
Discount rate 2.2% 3.7% 3.9%
Expected return on assets 2.2% 3.7% 3.9%
Rate of increase of pensions in payment 5.0% 5.0% 5.0%
Rate of increase for deferred pensioners 2.1% 2.2% 2.3%
The discount rate assumption has been set to equal a single discount rate which, when used to discount the projected benefit cash flows 
underlying a pension scheme with a 17-year duration, would give broadly the same result as using a full AA corporate bond yield curve to 
discount the same cash flows.
The Scheme’s assets are invested in insurance policies in which the underlying assets comprise wholly of corporate bonds and the 
expected return on assets is based on the yield available on AA-rated corporate bonds.  46 Electronic Data Processing PLC Annual Report and Accounts 2016
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
20. Employee benefits – pensions continued
Defined benefit pension scheme continued
The mortality assumptions adopted at 30 September 2016 are 100% of the standard tables S1PMA (males) and S1PFA (females). 
These imply the following life expectancies:
2016 2015
 Years Years
Retiring in 2016 (aged 65 years)  
– Males 22.1 22.2
– Females 24.4 24.6
Retiring in 2036 (currently aged 45 years)
– Males 23.8 23.9
– Females 26.3 26.5
Funding status
2016 2015 2014
£’000 £’000 £’000
Present value of Scheme obligations (11,633) (9,374) (9,075)
Fair value of Scheme assets 7,750 7,109 7,100
Deficit (3,883) (2,265) (1,975)
Categories of assets
2016 2015 2014
£’000 £’000 £’000
Corporate bonds 3,236 3,258 3,260
Insured pensioners 4,514 3,851 3,840
7,750 7,109 7,100
None of the fair values of the assets shown above include any of the Group’s own financial instruments or any property occupied by, or other 
assets used by, the Group. As a grouped funding policy, there are no units, and the asset value is calculated from benefits secured in tranches. 
The discontinuance surrender value of the policy is supplied by the Scheme’s administrators and is assumed to be backed 100% by 
corporate bonds.
Amounts recognised in the income statement
2016 2015
 £’000 £’000
The following amounts have been included within administrative expenses within 
the consolidated income statement:
Net interest expense 84 77 
Amounts recognised in other comprehensive income
2016 2015
£’000 £’000
Remeasurement loss:
Return on plan assets excluding interest income (601) 28 
Experience gains arising on the defined benefit obligation (111) (51)
Actuarial gains arising from changes in demographic assumptions (163) (18)
Actuarial losses arising from changes in financial assumptions 2,409 254 
1,534 213  47
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
20. Employee benefits – pensions continued
Reconciliation of present value of Scheme obligations
2016 2015
£’000 £’000
Present value of obligations at 1 October 9,374 9,075
Interest cost 343 349
Remeasurement loss 2,135 185
Benefits paid (219) (235)
Present value of obligations at 30 September 11,633 9,374
Reconciliation of the fair value of Scheme assets
2016 2015
 £’000 £’000
Fair value of assets at 1 October 7,109 7,100
Interest income 259 272
Remeasurement gain/(loss) 601 (28)
Benefits paid (219) (235)
Fair value of assets at 30 September 7,750 7,109
Sensitivity analysis
Changes at the balance sheet date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected 
the defined benefit obligation by the percentages shown below:
Change in assumption Change in liabilities
Discount rate Decrease of 0.25% p.a. Increase by 4.2%
Rate of inflation Increase of 0.25% p.a. Increase by 0.4%
Rate of mortality 1 year increase in life expectancy Increase by 4.3%
Estimated contribution in the financial year starting 1 October 2016
Estimated contributions to the Group Scheme for the year commencing 1 October 2016 are £nil.
21. Deferred income tax
The deferred income tax included in the Group income statement is as follows:
2016 2015
 £’000 £’000
Origination and reversals of temporary differences (31) (24)
Effect of decrease in the tax rate 30 —
(1) (24)
The deferred income tax included in the Group balance sheet is as follows:
2016 2015
 £’000 £’000
Taxation deferred by capital allowances (64) (69)
Temporary differences – other (18) (46)
Taxation on pension liability 660 453 
Deferred income tax 578 338 
Deferred income tax asset 660 453
Deferred income tax liability (82) (115)
578 338  48 Electronic Data Processing PLC Annual Report and Accounts 2016
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
22. Share capital
Ordinary shares of 5p each
2016 2015 2016 2015
Number Number £’000 £’000 
Allotted, called up and fully paid:
At 1 October and 30 September 13,784,073 13,784,073 689 689
Less: held in treasury (1,173,097) (1,173,097) (59) (59)
Issued share capital excluding treasury shares 12,610,976 12,610,976 630 630 
Each holder of an ordinary share is entitled to one vote for each share held at all meetings of shareholders and will be entitled to any 
dividends declared by the Board of Directors with the exception of treasury shares which do not carry any voting or dividend rights.
Treasury shares
Ordinary shares of 5p each
2016 2015 2016 2015
Number Number £’000 £’000
Shares held in treasury on 1 October and 30 September 1,173,097 1,173,097 587 587
Share options
The Company operates an Enterprise Management Incentive (EMI) Share Option Plan for Directors and other senior employees. Details of 
options granted to current Directors on 30 September 2010 are given in the Directors’ Remuneration Report. A further 225,000 options were 
granted to other employees on 30 September 2010 and 45,000 options were granted to other employees on 5 February 2013. The key terms, 
exercise price and required service period for these share options are the same as those granted to the Directors.
The fair value of EMI share options calculated at the grant date was 4.5p for those options granted on 30 September 2010 and 9.6p for 
those options granted on 5 February 2013. The main inputs in the calculation were:
Options 
granted on
30 September 
2010
Options 
granted on 
5 February 
2013
Share price volatility 21.91% 25.62%
Dividend yield 5.59% 4.46%
Risk-free interest rate 2.16% 3.04%
Expected option maturity 6.5 years 6.5 years
At 30 September 2016 there were 415,000 outstanding EMI share options which had vested and were exercisable. There were no 
outstanding EMI share options still within the vesting period. No charge has been recognised in the income statement for the year ended 
30 September 2016 in respect of these options as the entire IFRS 2 charge relating to all options granted has been recognised in prior 
periods (2015: £1,000).
There are no other share option plans in operation.
23. Lease obligations
Operating leases
At 30 September 2016 the Group had a total of future minimum commitments under non-cancellable operating leases on land and buildings 
as follows:
2016 2015
£’000 £’000
Within one year 61 68 
In the second to fifth years inclusive 194 1 
255 69  49
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Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
24. Contingent liabilities
The Group is party to claims which have arisen from normal trading activities. The outcome of these disputes cannot be forecast with 
certainty, but the Directors believe that the outcome will have no material effect on the Group’s net assets.
25. Group entities 
Subsidiary companies at 30 September 2016, all of which were holdings of 100% of the ordinary share capital, were:
Place of
registration
Trading
BML (Office Computers) Ltd England
BCT Software Solutions Ltd England
Disys Associates Ltd England
Vecta Sales Solutions Ltd England
Non-trading
Business Computer Services Ltd England
Business Computer Systems PLC England
Business Computers Ltd England
fastfreenet.com Ltd England
Electronic Data Processing Systems Ltd England
Ibex Computer Services Ltd Isle of Man
All the subsidiaries’ activities are conducted in the United Kingdom.
The principal activity of all trading companies within the Group is the sale of computer software and related services. 50 Electronic Data Processing PLC Annual Report and Accounts 2016
2016 2015
Note £’000 £’000
Fixed assets
Intangible assets 3 464 431 
Tangible assets 4 1,343 2,545 
Investments 5 3,598 3,598 
5,405 6,574 
Current assets
Stock 6 53 49 
Debtors 7 1,360 1,029 
Investments 8 3,500 3,000 
Cash at bank and in hand 1,738 2,513 
Assets held for sale 9 1,167 —
7,818 6,591 
Creditors:
amounts falling due within one year 10 (4,850) (5,695)
Net current assets 2,968 896 
Total assets less current liabilities 8,373 7,470 
Provisions for liabilities
Deferred tax liability 13 (84) (120)
Pension liability 14 (3,883) (2,265)
(3,967) (2,385)
Deferred income 11 (810) (714)
Net assets 3,596 4,371 
Capital and reserves
Called up share capital 15 689 689 
Share premium account 119 119 
Revaluation reserve 108 108 
Capital redemption reserve 625 625 
Treasury shares 15 (587) (587)
Profit and loss account 2,642 3,417 
Equity shareholders’ funds 3,596 4,371 
These financial statements were approved by the Board of Directors on 19 December 2016 and were signed on its behalf by:
Sir Michael Heller Julian Wassell Electronic Data Processing PLC, registered number 853560
Directors
 
Company Balance Sheet
at 30 September 2016 51
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Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
Called up Share Capital Profit
share premium Revaluation redemption Treasury and loss
capital account reserve reserve shares account Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 October 2014 689 119 301 625 (587) 3,817 4,964 
Profit for the period — — — — — 92 92 
Other comprehensive income:
–  valuation adjustment 
on freehold property — — (189) — — 189 —
–  transfer to profit and 
loss account – depreciation — — (4) — — 4 —
–  remeasurement loss on defined 
benefit pension scheme net of tax — — — — — (170) (170)
Total comprehensive income — — (193) — — 115 (78)
Transactions with owners:
–  share-based payment transactions — — — — — 1 1 
–  deferred tax on share-based 
payment transactions — — — — — (12) (12)
–  dividends paid — — — — — (504) (504)
Total transactions with owners — — — — — (515) (515)
Balance at 30 September 2015 689 119 108 625 (587) 3,417 4,371 
Called up Share Capital Profit
share premium Revaluation redemption Treasury and loss
capital account reserve reserve shares account Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 October 2015 689 119 108 625 (587) 3,417 4,371 
Profit for the period — — — — — 1,150 1,150 
Other comprehensive income:
–  remeasurement loss on defined 
benefit pension scheme net of tax — — — — — (1,296) (1,296)
Total comprehensive income — — — — — (146) (146)
Transactions with owners:
–  deferred tax on share-based 
payment transactions — — — — — 2 2 
–  dividends paid — — — — — (631) (631)
Total transactions with owners — — — — — (629) (629)
Balance at 30 September 2016 689 119 108 625 (587) 2,642 3,596 
Company Statement of Changes in Equity
for the year ended 30 September 2016 52 Electronic Data Processing PLC Annual Report and Accounts 2016
Company Cash Flow Statement
for the year ended 30 September 2016
2016 2015
£’000 £’000
Cash flows from operating activities
Profit for the period 1,150 92 
Adjustments for:
Depreciation 211 228 
Amortisation 129 81 
Profit on disposal of property, plant and equipment (11) (120)
Write-down of property value 10 189 
Transfer of inventory to property, plant and equipment (5) (2)
Defined benefit pension charge net of employer contributions 84 77 
Finance income (51) (42)
Income tax expense/(credit) 28 (9)
Change in inventories (4) (1)
Change in receivables (109) (2)
Change in payables (849) 347 
Change in deferred income 96 78 
Equity settled share-based payment transactions — 1 
Cash received from operations 679 917 
Interest received 36 19 
Income taxes (paid)/received (27) 68 
Net cash from operating activities 688 1,004 
Cash flows from investing activities
Purchase of property, plant and equipment (198) (167)
Purchase of intangible assets (35) (17)
Capitalised development expenditure (127) (139)
Proceeds from sale of property, plant and equipment 28 424 
Net cash (used in)/generated by investing activities (332) 101 
Cash flows from financing activities
Transfers to fixed-term deposit investments (500) (3,000)
Dividends paid (631) (504)
Net cash used in financing activities (1,131) (3,504)
Net decrease in cash and cash equivalents (775) (2,399)
Cash and cash equivalents at beginning of period 2,513 4,912 
Cash and cash equivalents at end of period 1,738 2,513  53
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
Notes to the Company Financial Statements
(forming part of the financial statements)
1. Accounting policies
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the 
Company’s financial statements. 
Basis of preparation
These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101). 
The amendments to FRS 101 (2014/15 Cycle) issued in July 2015 and effective immediately have been applied.
In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of International 
Financial Reporting Standards as adopted by the EU (“Adopted IFRSs”), but makes amendments where necessary in order to comply with 
Companies Act 2006. Advantage of the disclosure exemptions has not been taken in these financial statements.
Under s408 of the Companies Act 2006 the Company is exempt from the requirement to present its own profit and loss account. 
In the transition to FRS 101, the Company has applied IFRS 1 whilst ensuring that its assets and liabilities are measured in compliance 
with FRS 101. An explanation of how the transition to FRS 101 has affected the reported financial position of the Company is provided 
in note 18.
IFRS 1 grants certain exemptions from the full requirements of Adopted IFRSs in the transition period. The following exemption has been 
taken in these financial statements:
• Fair value or revaluation as deemed cost – at 1 October 2014 fair value has been used as deemed cost for properties previously 
measured at fair value.
The Company proposes to adopt the reduced disclosure framework of FRS 101 in its next financial statements. 
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial 
statements and in preparing an opening FRS 101 balance sheet at 1 October 2014 for the purposes of transition to FRS 101. 
Measurement convention
The financial statements are prepared on the historical cost basis except as described elsewhere in note 1. 
Foreign currency
Sales to overseas customers which are denominated in foreign currencies are translated into sterling at the exchange rate ruling at the date 
of the transaction. Monetary assets resulting from sales denominated in foreign currencies at the balance sheet date are retranslated into 
sterling at the exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement. 
Investments in subsidiaries 
Investments in subsidiary undertakings are stated at cost less any diminution in value.
Tangible fixed assets
Tangible fixed assets are stated at cost or deemed cost less accumulated depreciation and impairment losses. Land is not depreciated. 
The Directors assess the residual values and useful economic lives of the properties on an annual basis. Depreciation is provided so as to 
write off the cost, or deemed cost, less the estimated residual value of each asset in equal instalments over its estimated useful life from 
the time it becomes operational, at the following rates:
Freehold property    – 1 to 2%
Motor vehicles    – 20 to 33%
Fixtures, fittings and equipment – 15 to 25% 
Intangible fixed assets 
Software intellectual property rights
Assets are initially carried at cost, including any incidental expenses of acquisition. Following initial recognition, they are carried at cost 
less any accumulated amortisation and accumulated impairment losses. Software intellectual property rights are amortised over a period 
of between three and ten years on a straight line basis and amortised from the time the software is brought into use. 
Research and development
Expenditure on research activities, undertaken with the prospect of gaining new technical knowledge and understanding, is recognised 
in the income statement as incurred. 
Development activities involve a plan or design for the production of new or substantially improved products and processes. Development 
expenditure is capitalised only if development costs can be measured reliably, the product or process is technically and commercially feasible, 
future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell 
the asset. The expenditure capitalised includes the cost of materials, direct labour and overheads that are directly attributable to preparing 
the asset for its intended use. Other development expenditure not meeting these criteria is recognised in the income statement as incurred.
Capitalised development expenditure is measured at cost less accumulated amortisation and accumulated impairment losses. 
Amortisation is based on the cost of an asset less its residual value. Capitalised software development costs are amortised over a period 
of between three and seven years on a straight line basis and amortised from the time the asset becomes available for use. 54 Electronic Data Processing PLC Annual Report and Accounts 2016
Notes to the Company Financial Statements continued
(forming part of the financial statements)
1. Accounting policies continued
Stock
Inventories are valued at the lower of purchase cost and net realisable value.
Trade and other debtors
Trade debts, which generally have terms of up to 30 days, are recognised and carried at original invoice amount less an allowance for 
any uncollectable amounts. Provision is made where there is objective evidence that the Company will not be able to collect part or all 
of a debt. Bad debts are written off as identified.
Cash and cash equivalents
Cash and cash equivalents at the balance sheet date comprise cash on hand and short-term deposits, net of bank overdrafts.
Current asset investments
Current asset investments at the balance sheet date comprise fixed-term bank deposits which have a maturity at acquisition greater than 
three months.
Assets held for sale
A non-current asset is classified as held for sale if, at the balance sheet date, its carrying value will be recovered principally through sale 
rather than through continuing use, it is available for immediate sale and that sale is highly probable within one year. On initial classification 
as held for sale, non-current assets are measured at the lower of previous carrying amount and fair value less costs to sell, with any 
adjustments taken to the income statement. The same applies to gains and losses subsequent to remeasurement.
Leasing transactions
Operating lease rentals are charged to the income statement on a straight line basis over the period of the lease.
Deferred income
Deferred income represents that portion of licence fees, hosting charges and maintenance contracts taken out by customers but which 
relate to a future period.
Taxes
Tax on the Company’s profit or loss for the period comprises current and deferred tax. Tax is recognised in the income statement except 
to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance 
sheet date, and any adjustments to tax payable in respect of prior years. 
Deferred tax is provided on the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes 
and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement 
of the carrying amounts of assets and liabilities using tax rates enacted or substantively enacted at the balance sheet date. 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.
Pensions
The Company operates both defined contribution and defined benefit pension schemes. The premiums relating to defined contribution 
schemes are charged to the income statement in the period in which they accrue.
The Company’s net obligation in respect of its defined benefit pension scheme is calculated by estimating the amount of future benefit 
that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present 
value, and the fair value of the scheme assets is deducted. The calculation is performed by a qualified actuary using the projected unit 
credit method.
Remeasurement gains and losses arising from changes in actuarial assumptions, plan experience and differences between the expected 
and actual return on plan assets are recognised in “other comprehensive income” in the statement of comprehensive income in the year 
in which they occur.
All other movements in the pension asset or liability are recognised in the income statement for the relevant period.
Share-based payment transactions
The Company operates a share option scheme for certain employees. The fair value of the share options is calculated at the date of grant 
using a Black-Scholes model. The fair value is then recognised as an employee expense on a straight line basis over the vesting period 
with a corresponding increase in equity.
Equity
The nature and purpose of each reserve included within equity is as follows:
Share capital
The balance classified as share capital includes the nominal value on issue of the Company’s equity share capital, comprising 5p ordinary shares.
Share premium
The balance classified as share premium represents the premium paid on the issue of the Company’s equity share capital. 55
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Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
1. Accounting policies continued
Share-based payment transactions continued
Equity continued
Capital redemption reserve
The balance classified as capital redemption reserve represents the nominal value of issued share capital repurchased by the Company.
Treasury shares
When share capital recognised as equity is repurchased, the amount of the consideration paid, which includes directly attributable costs, 
net of any tax effects, is recognised as a deduction from equity. Repurchased shares classified as treasury shares are presented as a deduction 
from equity. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity, and the 
resulting surplus or deficit on the transaction is transferred to or from retained earnings.
Significant judgements and estimates
Judgements and estimates made by the Directors in the application of these accounting policies may have a significant effect on the financial 
statements with a significant risk of material adjustment in the next year. The main areas of estimation and accounting judgement are:
Employee benefits
The calculation of the deficit or surplus on the Company’s defined benefit pension scheme is based on a number of actuarial assumptions 
including discount rate, future rate of inflation and future changes in mortality rates. These assumptions are reviewed regularly by the Directors 
with the scheme actuary.
Software intellectual property rights
The Company reviews annually the carrying value of assets to determine if there has been any impairment. These reviews require the use 
of estimates of the future cash flows generated by the asset.
Freehold property valuation and classification
The Company’s freehold property is stated at cost or deemed cost less accumulated depreciation and impairment losses. The Directors 
make judgements annually about the carrying value of freehold property and make estimates of residual values and useful economic lives. 
They also apply judgement about the likely timing of future disposals when determining which of the Company’s vacant properties should 
be reclassified as an asset held for sale.
Development costs
The Directors review annually the Company’s software development projects and assess which of those projects qualify for capitalisation 
under IAS 38. An assessment is made of projects capitalised in prior periods to determine if there has been any impairment.
Revenue recognition
The key area of judgement in respect of revenue recognition is the timing of recognition of software licensing and hosting revenues which 
involves assessing which revenues are recognised immediately and which are deferred and recognised over time.
Financial risk management 
The Company has exposure to the following risks from its use of financial instruments:
• credit risk;
• liquidity risk; and
• market risk.
This note presents material information about the Company’s exposure to each of the above risks, the Company’s objectives, policies 
and procedures for measuring and managing risk, and the Company’s management of capital. Further quantitative disclosures are included 
throughout these financial statements.
The Board of Directors has overall responsibility for the establishment and overseeing of the Company’s risk management framework. 
The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk 
limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect 
changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, 
aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual 
obligations and arises principally from the Company’s receivables from customers and investments. The Company’s exposure to credit risk 
is influenced mainly by the individual characteristics of each customer and also the markets in which they operate.
The Company is not exposed through a significant volume of sales transactions with any single customer. All new customers are reviewed 
before the Company’s standard payment and delivery terms and conditions are offered. The Company establishes an allowance for impairment 
that represents its estimate of incurred losses in respect of trade and other receivables on a line by line basis.
The Company limits its exposure to credit risk by only investing surplus cash in recognised UK-based banks. 56 Electronic Data Processing PLC Annual Report and Accounts 2016
Notes to the Company Financial Statements continued
(forming part of the financial statements)
1. Accounting policies continued
Financial risk management continued
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company is currently 
debt free and has significant cash resources. It therefore considers the risk to be low at the present time. The Company does not trade 
in financial instruments.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange and interest rates, will affect the Company’s income or the 
value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within 
acceptable parameters, while optimising the return.
The Company has a small number of customers based in the US who are invoiced in US dollars. As these revenues represent approximately 2% 
of total turnover, the Company does not enter into any hedging transactions. All other Company sales to overseas customers are denominated 
in sterling and therefore they do not present a foreign currency risk. The Company does not have any significant monetary assets and liabilities 
that are not denominated in the functional currency of the operating unit involved.
As the Company has significant cash deposits, changes in interest rates could have a significant impact on the Company’s results.
Capital management
The Board’s policy is to maintain a strong capital base, defined as total equity, so as to maintain investor, creditor and market confidence 
and to sustain future development of the business.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
New standards not applied 
The IASB has issued the following standards with an effective date after the date of these financial statements and early adoption has not 
been applied:
Effective for accounting
periods beginning on or after 
International Accounting Standards (IFRS/IAS)
IFRS 2 (amended June 2016) Share-based Payment 1 January 2018
IFRS 4 (amended September 2016) Insurance Contracts 1 January 2018
IFRS 9 Financial Instruments 1 January 2018
IFRS 10 (amended December 2014) Consolidated Financial Statements 1 January 2016
IFRS 11 (amended May 2014) Joint Arrangements 1 January 2016
IFRS 12 (amended December 2014) Disclosure of Interests in Other Entities 1 January 2016
IFRS 14 Regulatory Deferral Accounts 1 January 2016
IFRS 15 Revenue from Contracts with Customers 1 January 2018
IFRS 16 Leases 1 January 2019
IAS 1 (amended December 2014) Presentation of Financial Statements 1 January 2016
IAS 7 (amended January 2016) Statement of Cash Flows 1 January 2017
IAS 12 (amended January 2016) Income Taxes 1 January 2017
IAS 16 (amended May and June 2014) Property, Plant and Equipment 1 January 2016
IAS 27 (amended August 2014) Separate Financial Statements 1 January 2016
IAS 28 (amended December 2014) Investments in Associates and Joint Ventures 1 January 2016
IAS 38 (amended May 2014) Intangible Assets 1 January 2016
IAS 41 (amended June 2014) Agriculture 1 January 2016
Amendents resulting from September 2014 Annual Improvements to IFRSs 1 January 2016
The Directors are currently assessing the likely impact that adoption of IFRS 15 Revenue from Contracts with Customers will have on the 
Company’s financial statements in the period of initial application. 
It is not anticipated that application of the remaining new standards, interpretations and amendments to existing standards will have a material 
effect on the Company’s financial statements when first applied. 57
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
2. Employee information
The average number of persons employed by the Company (including Executive Directors) during the year, analysed by category, was as follows:
Number of employees
2016 2015
Sales and administration 14 13
Support, development and network services 36 33
50 46 
The aggregate payroll costs of these persons were as follows:
2016 2015
£’000 £’000
Salaries 1,935 1,843 
Social security costs 225 212 
Other pension costs 56 47 
2,216 2,102 
Aggregate Directors’ emoluments amounted to £385,721 (2015: £414,852). Details of Directors’ remuneration are given in the Directors’ 
Remuneration Report.
3. Intangible fixed assets 
Software
intellectual Development
property rights costs Total
£’000 £’000 £’000
Cost
At 1 October 2015 942 486 1,428 
Additions – internally developed — 127 127 
Additions – purchased 35 — 35 
Deletions — (5) (5)
At 30 September 2016 977 608 1,585 
Amortisation 
At 1 October 2015 861 136 997 
Charge for the year 33 96 129 
Deletions — (5) (5)
At 30 September 2016 894 227 1,121 
Net book value 
At 30 September 2016 83 381 464 
Cost
At 1 October 2014 925 347 1,272 
Additions – internally developed — 139 139 
Additions – purchased 17 — 17 
At 30 September 2015 942 486 1,428 
Amortisation 
At 1 October 2014 846 70 916 
Charge for the year 15 66 81 
At 30 September 2015 861 136 997 
Net book value 
At 30 September 2015 81 350 431  58 Electronic Data Processing PLC Annual Report and Accounts 2016
Notes to the Company Financial Statements continued
(forming part of the financial statements)
4. Tangible fixed assets 
Freehold Motor 
Fixtures, 
fittings and
property vehicles equipment Total 
£’000 £’000 £’000 £’000 
Cost 
At 1 October 2015 2,414 238 1,830 4,482 
Additions — 34 164 198 
Transfer to assets held for sale (1,423) — — (1,423)
Transfers from stock — — 6 6 
Disposals — (65) (284) (349)
At 30 September 2016 991 207 1,716 2,914 
Depreciation
At 1 October 2015 449 146 1,342 1,937 
Charge for the year 10 42 159 211 
Transfer to assets held for sale (246) — — (246)
Transfers from stock — — 1 1 
Disposals — (54) (278) (332)
At 30 September 2016 213 134 1,224 1,571 
Net book value
At 30 September 2016 778 73 492 1,343 
Cost 
At 1 October 2014 2,811 270 1,773 4,854 
Additions — — 167 167 
Disposals (397) (32) (110) (539)
At 30 September 2015 2,414 238 1,830 4,482 
Depreciation
At 1 October 2014 325 127 1,305 1,757 
Charge for the year 32 48 148 228 
Write-down 189 — — 189 
Transfers to stock — — (2) (2)
Disposals (97) (29) (109) (235)
At 30 September 2015 449 146 1,342 1,937 
Net book value
At 30 September 2015 1,965 92 488 2,545 
5. Fixed asset investments
Shares in
Group
undertakings
£’000
Cost
At 1 October 2015 and 30 September 2016 3,598
Provision for diminution in value
At 1 October 2015 and 30 September 2016 —
Net book value
At 1 October 2015 and 30 September 2016 3,598 59
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
5. Fixed asset investments continued
Subsidiary companies at 30 September 2016 and 30 September 2015, all of which were holdings of 100% of the ordinary share capital, were:
Place of
registration
Trading
BML (Office Computers) Ltd England
BCT Software Solutions Ltd England
Disys Associates Ltd England
Vecta Sales Solutions Ltd England
Non-trading
Business Computer Services Ltd England
Business Computer Systems PLC England
Business Computers Ltd England
fastfreenet.com Ltd England
Electronic Data Processing Systems Ltd England
Ibex Computer Services Ltd Isle of Man
All the subsidiaries’ activities are conducted in the United Kingdom.
The principal activity of all trading companies within the Group is the sale of computer software and related services.
6. Stock 
2016 2015
£’000 £’000
Computer equipment 53 49 
7. Debtors 
2016 2015
£’000 £’000
Trade debtors 440 334 
Other debtors 38 23 
Deferred tax asset (see note 13) 660 453 
Prepayments and accrued income 222 219 
1,360 1,029 
The deferred tax asset included in debtors is expected to be recovered in more than one year.
8. Current asset investments
2016 2015
£’000 £’000
Fixed-term bank deposits 3,500 3,000 
9. Assets held for sale
2016 2015
£’000 £’000 
At 1 October — —
Transferred from property, plant and equipment 1,177 —
Write-down (10) —
At 30 September 1,167 —
The asset held for sale at 30 September 2016 is the Group’s vacant property at Milton Keynes. The sale of this property completed on 
13 December 2016. 60 Electronic Data Processing PLC Annual Report and Accounts 2016
Notes to the Company Financial Statements continued
(forming part of the financial statements)
10. Creditors: amounts falling due within one year 
2016 2015
£’000 £’000
Trade creditors 428 345 
Amounts owed to subsidiary undertakings 4,073 5,027 
Corporation tax 30 26 
Other taxes and social security 183 175 
Other creditors 136 122 
4,850 5,695 
11. Deferred income 
This represents the portion of annual licence fees, hosting charges and maintenance contracts taken out by customers that relate 
to a future period.
2016 2015
£’000 £’000
To be recognised:
– within one year 809 714 
– after more than one year 1 —
810 714 
12. Financial instruments
The Company’s financial instruments comprise cash and liquid resources, and various items, such as trade receivables, trade payables, etc., 
that arise directly from its operations. There is no material difference between book value and fair value of these financial instruments.
Short-term bank deposits are invested at a variable interest rate based on base rate. This position is constantly monitored by the Board.
The Company also invests surplus cash in fixed-term deposit accounts. Interest rates on these investments are fixed for the duration of the term.
Undrawn committed facilities
At 30 September 2016 the Company had no undrawn committed borrowing facilities (2015: £nil).
Credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting 
date was:
Carrying amount
2016 2015
£’000 £’000
Trade receivables 440 334
Investments 3,500 3,000
Cash and cash equivalents 1,738 2,513
5,678 5,847
The ageing of trade receivables at the reporting date was:
 
2016 2015
Gross Impairment Gross Impairment 
£’000 £’000 £’000 £’000
Not past due 341 — 151 —
Past due 0–30 days 44 1 96 —
Past due 31–120 days 16 1 49 2
Past due 121–360 days 25 1 41 6
More than one year 52 35 15 10
478 38 352 18 61
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
12. Financial instruments continued
Credit risk continued
The movement in the allowance for impairment in respect of trade receivables during the year was as follows:
2016 2015
£’000 £’000
Balance at 1 October 18 11
Previously impaired balances written off (13) —
Impairment loss recognised 33 7 
Balance at 30 September 38 18
The impairment loss for the year relates to specific customers who have purchased software solutions and management considers there 
to be a risk in collecting the outstanding balances.
There is no additional risk that warrants disclosure concerning trade receivables that are neither past due nor impaired.
Liquidity risk
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact 
of netting agreements:
At 30 September 2016
Carrying Contractual 6 months More than
amount cash flows or less 12 months one year
£’000 £’000 £’000 £’000 £’000
Trade and other payables 747 747 747 — —
Amounts owed to subsidiary undertakings 4,073 4,073 4,073 — —
Income tax payable 30 30 — 30 —
Deferred income 810 — 575 234 1
5,660 4,850 5,395 264 1
At 30 September 2015
Carrying Contractual 6 months More than
amount cash flows or less 12 months one year
£’000 £’000 £’000 £’000 £’000
Trade and other payables 642 642 642 — —
Amounts owed to subsidiary undertakings 5,027 5,027 5,027 — —
Income tax payable 26 26 — 26 —
Deferred income 714 — 489 225 —
6,409 5,695 6,158 251 —
Interest rate risk 
At the reporting date the Group’s interest bearing financial instruments were:
Carrying amount 
2016 2015
£’000 £’000
Fixed-term deposits 3,500 3,000
Variable-rate cash deposits 1,738 2,513
5,238 5,513
Sensitivity analysis
The majority of cash balances throughout the year are held on deposit at competitive market rates. A 0.25% fluctuation in interest rates 
on all deposits held at the year end would have an approximate impact of £13,000 (2015: £14,000) on finance income with a corresponding 
£3,000 (2015: £3,000) impact on income tax expense. 62 Electronic Data Processing PLC Annual Report and Accounts 2016
Notes to the Company Financial Statements continued
(forming part of the financial statements)
13. Deferred tax
The deferred tax included in the Company balance sheet is as follows:
2016 2015
 £’000 £’000
Taxation deferred by capital allowances (65) (71)
Temporary differences – other (19) (49)
Taxation on pension liability 660 453 
Deferred tax 576 333 
Deferred tax asset 660 453
Deferred tax liability (84) (120)
576 333 
14. Pensions
The Company operates both defined benefit and defined contribution pension schemes. 
Defined contribution pension schemes
The Company operates a number of defined contribution pension schemes, the principal scheme being a grouped personal pension scheme 
through an insurance company. The pension costs of these arrangements were £51,000 (2015: £43,000). Outstanding contributions at the 
end of the year were £11,000 (2015: £10,000).
Defined benefit pension scheme
The Company sponsors the Electronic Data Processing PLC Pension and Life Assurance Scheme which is a funded defined benefit 
arrangement. This is a separate trustee administered fund holding the pension scheme assets to meet long-term pension liabilities for 
the members. The scheme entitles a retired member to receive an annual pension equal to 1/60 of final salary for each year of service 
that the member provided.
The scheme closed to future accrual on 31 August 2014.
The scheme exposes the Company to actuarial risks such as investment risk, interest rate risk and longevity risk. A decrease in corporate 
bond yields, a rise in inflation or an increase in life expectancy would result in an increase to scheme liabilities. This would detrimentally 
impact the balance sheet position and may give rise to increased charges in future income statements.
The last full actuarial valuation of the scheme was performed at 31 July 2013 by a professionally qualified actuary. This scheme funding 
valuation showed a surplus of £62,000 at that date.
Members have paid contributions at a rate in line with the recommendations of the actuary over the accounting period. 
The full actuarial valuation of the Scheme was updated on an IAS 19 basis at 30 September 2016 by JLT Benefit Solutions Limited using 
the following assumptions: 
2016 2015 2014
Inflation rate 2.1% 2.2% 2.3%
Discount rate 2.2% 3.7% 3.9%
Expected return on assets 2.2% 3.7% 3.9%
Rate of increase of pensions in payment 5.0% 5.0% 5.0%
Rate of increase for deferred pensioners 2.1% 2.2% 2.3%
The discount rate assumption has been set to equal a single discount rate which, when used to discount the projected benefit cash flows 
underlying a pension scheme with a 17-year duration, would give broadly the same result as using a full AA corporate bond yield curve to 
discount the same cash flows.
The Scheme’s assets are invested in insurance policies in which the underlying assets comprise wholly of corporate bonds and the 
expected return on assets is based on the yield available on AA-rated corporate bonds. 63
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
14. Pensions continued
Defined benefit pension scheme continued
The mortality assumptions adopted at 30 September 2016 are 100% of the standard tables S1PMA (males) and S1PFA (females). These 
imply the following life expectancies:
2016 2015
 Years Years
Retiring in 2016 (aged 65 years)
 – Males 22.1 22.2
 – Females 24.4 24.6
Retiring in 2036 (currently aged 45 years)
 – Males 23.8 23.9
 – Females 26.3 26.5
Funding status
2016 2015 2014
£’000 £’000 £’000 
Present value of Scheme obligations (11,633) (9,374) (9,075)
Fair value of Scheme assets 7,750 7,109 7,100
Deficit (3,883) (2,265) (1,975)
Categories of assets
2016 2015 2014
£’000 £’000 £’000 
Corporate bonds 3,236 3,258 3,260
Insured pensioners 4,514 3,851 3,840
7,750 7,109 7,100
None of the fair values of the assets shown above include any of the Company’s own financial instruments or any property occupied by, 
or other assets used by, the Company. As a grouped funding policy, there are no units, and the asset value is calculated from benefits 
secured in tranches. The discontinuance surrender value of the policy is supplied by the Scheme’s administrators and is assumed to be 
backed 100% by corporate bonds.
Amounts recognised in the income statement
2016 2015
£’000 £’000
The following amounts have been included within administrative expenses within the income statement:
Net interest expense 84 77 
Amounts recognised in other comprehensive income
2016 2015
£’000 £’000
Remeasurement loss:
Return on plan assets excluding interest income (601) 28 
Experience gains arising on the defined benefit obligation (111) (51)
Actuarial gains arising from changes in demographic assumptions (163) (18)
Actuarial losses arising from changes in financial assumptions 2,409 254 
1,534 213  64 Electronic Data Processing PLC Annual Report and Accounts 2016
Notes to the Company Financial Statements continued
(forming part of the financial statements)
14. Pensions continued
Reconciliation of present value of Scheme obligations
2016 2015
£’000 £’000
Present value of obligations at 1 October 9,374 9,075
Interest cost 343 349
Remeasurement loss 2,135 185
Benefits paid (219) (235)
Present value of obligations at 30 September 11,633 9,374
Reconciliation of the fair value of Scheme assets
2016 2015
 £’000 £’000
Fair value of assets at 1 October 7,109 7,100
Interest income 259 272
Remeasurement gain/(loss) 601 (28)
Benefits paid (219) (235)
Fair value of assets at 30 September 7,750 7,109
Sensitivity analysis
Changes at the balance sheet date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected 
the defined benefit obligation by the percentages shown below:
Change in assumption Change in liabilities
Discount rate Decrease of 0.25% p.a. Increase by 4.2%
Rate of inflation Increase of 0.25% p.a. Increase by 0.4%
Rate of mortality 1 year increase in life expectancy Increase by 4.3%
Estimated contribution in the financial year starting 1 October 2016
Estimated contributions to the Group Scheme for the year commencing 1 October 2016 are £nil.
15. Share capital
Ordinary shares of 5p each
2016 2015 2016 2015
Number Number £’000 £’000 
Allotted, called up and fully paid:
At 1 October and 30 September 13,784,073 13,784,073 689 689
Less: held in treasury (1,173,097) (1,173,097) (59) (59)
Issued share capital excluding treasury shares 12,610,976 12,610,976 630 630 
Each holder of an ordinary share is entitled to one vote for each share held at all meetings of shareholders and will be entitled to any 
dividends declared by the Board of Directors with the exception of treasury shares which do not carry any voting or dividend rights.
Treasury shares
Ordinary shares of 5p each
2016 2015 2016 2015
Number Number £’000 £’000
Shares held in treasury on 1 October and 30 September 1,173,097 1,173,097 587 587 65
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
15. Share capital continued
Share options
The Company operates an Enterprise Management Incentive (EMI) Share Option Plan for Directors and other senior employees. Details 
of options granted to current Directors on 30 September 2010 are given in the Directors’ Remuneration Report. A further 225,000 options 
were granted to other employees on 30 September 2010 and 45,000 options were granted to other employees on 5 February 2013. 
The key terms, exercise price and required service period for these share options are the same as those granted to the Directors. 
The fair value of EMI share options calculated at the grant date was 4.5p for those options granted on 30 September 2010 and 9.6p for 
those options granted on 5 February 2013. The main inputs in the calculation were: 
Options 
granted on
30 September 
2010
Options 
granted on 
5 February 
2013
Share price volatility 21.91% 25.62%
Dividend yield 5.59% 4.46%
Risk-free interest rate 2.16% 3.04%
Expected option maturity 6.5 years 6.5 years
At 30 September 2016 there were 415,000 outstanding EMI share options which had vested and were exercisable. There were no 
outstanding EMI share options still within the vesting period. No charge has been recognised in the income statement for the year ended 
30 September 2016 in respect of these options as the entire IFRS 2 charge relating to all options granted has been recognised in prior 
periods (2015: £1,000).
There are no other share option plans in operation.
16. Lease obligations
Operating leases 
At 30 September 2016 the Company had a total of future minimum commitments under non-cancellable operating leases on land 
and buildings as follows:
2016 2015
£’000 £’000
Within one year 61 68 
In the second to fifth years inclusive 194 1 
255 69 
17. Contingent liabilities 
The Company is party to claims which have arisen from normal trading activities. The outcome of these disputes cannot be forecast with 
certainty, but the Directors believe that the outcome will have no material effect on the Company’s net assets. 66 Electronic Data Processing PLC Annual Report and Accounts 2016
Notes to the Company Financial Statements continued
(forming part of the financial statements)
18. Explanation of transition to FRS 101 from old UK GAAP
Reconciliation of equity
 
1 October 2014 30 September 2015
UK GAAP
Effect of
 transition 
to FRS 101 FRS 101 UK GAAP
Effect of
 transition 
to FRS 101 FRS 101
Note £’000 £’000 £’000 £’000 £’000 £’000 
Fixed assets
Intangible assets a 79 277 356 81 350 431 
Tangible assets 3,097 — 3,097 2,545 — 2,545 
Investments 3,598 — 3,598 3,598 — 3,598 
6,774 277 7,051 6,224 350 6,574 
Current assets
Stock 49 — 49 49 — 49 
Debtors 608 — 608 576 — 576 
Investments b 3,000 (3,000) — 3,000 — 3,000 
Cash at bank and in hand b 1,912 3,000 4,912 2,513 — 2,513 
5,569 — 5,569 6,138 — 6,138 
Creditors:
amounts falling due within one year c (5,296) (26) (5,322) (5,670) (25) (5,695)
Net current assets 273 (26) 247 468 (25) 443 
Total assets less current liabilities 7,047 251 7,298 6,692 325 7,017 
Provisions for liabilities
Deferred tax liability d (96) (22) (118) (71) (49) (120)
Pension liability (1,580) — (1,580) (1,812) — (1,812)
(1,676) (22) (1,698) (1,883) (49) (1,932)
Deferred income (636) — (636) (714) — (714)
Net assets 4,735 229 4,964 4,095 276 4,371 
Capital and reserves
Called up share capital 689 — 689 689 — 689 
Share premium account 119 — 119 119 — 119 
Revaluation reserve 301 — 301 108 — 108 
Capital redemption reserve 625 — 625 625 — 625 
Treasury shares (587) — (587) (587) — (587)
Profit and loss account 3,588 229 3,817 3,141 276 3,417 
Equity shareholders’ funds 4,735 229 4,964 4,095 276 4,371 
Notes to the reconciliation of equity
a)   At 1 October 2014 £347,000 of development expenditure, with associated amortisation of £70,000, met the requirement for 
capitalisation as an intangible asset under FRS 101. A further £139,000 of development expenditure was capitalised in the year 
to 30 September 2015 and an amortisation charge of £66,000 was also recognised in the year.
b)   At 1 October 2014 the Company had £3,000,000 of cash invested in a three-month notice deposit account which under UK GAAP 
was disclosable as a current asset investment but under FRS 101 was disclosable as cash at bank.
c)   This adjustment relates to the booking of a holiday pay accrual under FRS 101 of £25,000 (2014: £26,000).
d)   This adjustment represents the deferred tax impact of a) and c) above along with the recognition of a deferred tax asset of £15,000 
(2014: £28,000) relating to share-based payments under FRS 101. 67
Governance Notice of meeting Strategic report
Electronic Data Processing PLC Annual Report and Accounts 2016
Financial statements
Summarised financial information for the Group for the five years ended 30 September 2016 is set out below.
Year to 30 September
2016 2015 2014 2013 2012
£’000 £’000 £’000 £’000 £’000
Revenue 4,958 5,157 5,508 5,827 5,805 
Gross profit 4,675 4,758 5,074 5,419 5,334 
Administrative expenses (4,368) (4,381) (4,719) (4,710) (4,646)
One-off property costs (104) — — — —
Operating profit 203 377 355 709 688 
Profit on sale of property — 117 — — —
Write-down of property values (10) (189) — — (849)
Finance income 51 42 46 85 78 
Profit/(loss) before tax 244 347 401 794 (83)
Income tax (expense)/credit (86) (43) 3 (207) 26 
Profit/(loss) for the period 158 304 404 587 (57)
Earnings/(loss) per share 1.25p 2.41p 3.21p 4.68p (0.45)p
Adjusted earnings per share* 1.24p 2.72p 3.21p 4.68p 4.66p
Net assets per share 25.3p 39.3p 42.4p 49.1p 50.0p
* Adjusted earnings per share excludes profits and losses on property disposals and revaluations and any related deferred tax effects. 
Five Year Statistical Record   4th Floor, Fountain Precinct, Balm Green, Sheffield S1 2JA 
Telephone: 0114 262 2000
www.edp.co.uk
Electronic Data Processing PLC Annual Report and Accounts 2016