TangenT CommuniCa Tions PlC 
Truscott House 
32–42 East Road 
London N1 6AD 
www.tangentuk.com
Personal
l ocal
Multi-channel
TANGENT COMMUNICATIONS PLC
annual report and accounts 2008
TANGENT COMMUNICATIONS PLC annual report and accounts 2008 CorPora Te sTaTemenT
t angent helps clients foster 
closer relationships with their 
customers using targeted, 
localised websites, email, 
direct mail and point of sale.
 01 highlights 02 our business 04 chairman’s statement 06  business review: 
  06 overview  10 chief executives’ review
  14 financial review 16 board of directors 
 17 advisers 18 directors’ report 21 corporate governance statement 23 remuneration report 25 independent auditors’ report
 26 consolidated income statement 27 consolidated statement of  
  changes in equity 28 consolidated balance sheet
 29 consolidated cash flow statement 30 company statement of changes in equity 31 company balance sheet
 32 company cash flow statement 33 notes to the financial statements 48 notice of annual general meeting
 51 form of proxy ibc financial calendar
finanCial Calendar 
24 July 2008 annual general meeting
22 august 2008 dividend payment (subject to shareholder approval)
31 august 2008 financial half year end
november 2008 interim results announcement
28 february 2009 financial year end
may 2009  annual results announcement TangenT communica Tions plc  annual report and accounts 2008  01
HigHligHts
Operating
 signed a two year agreement with gala coral group
  signed a digital direct mail contract with one of the 
uK’s largest direct marketers
 l aunched a data management and data processing team 
  launched a search marketing service responding 
to contract win
  launched Zui, a new business partnership selling 
business software to corporates
FinanCial
 Revenue up 102% to £17.36m (2007: £8.61m)
 	 	 Underlying	operating	profit	up	128%	to	£ 2.44m	
(2007: £1.07m)
	 	 Underlying 	 operating 	 margin 	 up 	 to 	 14.0%	 
(2007: 	 12.4%)
 	 	 Underlying	basic	earnings	per	share	up	by	31%	to	1.24p	
(2007: 0.95p) 
 Diluted earnings per share up 69% to 0.88p
  operating cash generation up 117% to £2.55m 
(2007: £1.18m) 
 maiden dividend of 0.2p per share proposed
	 Underlying 	 operating 	 profit 	 excluding 	 acquisitions 	 up 	 22%
Underlying	figures	exclude	the	non‑cash	share‑based	payment	charge
Underlying operating profit
+128%
Underlying basic earnings per share
+31%
Revenue
+102% 02  TangenT communica Tions plc  annual report and accounts 2008
Our business
Solving strategic business problems through 
creative application of technology.
T angent marketing services helps national and global clients apply 
their brands at a regional and local level. 
Marketing Services
A t 	 t h e 	 h e a r t 	 o f 	 m a r k e t i n g 	 f u l fi l m e n t 	 i s 	 m e a s u r e m e n t , 	 g i v i n g	
feedback on effectiveness and return on investment (Roi). 
Proprietary Technology
consumers use a range of communication channels  
depending on content and time – T angent believes brands  
should be no different.
Multi‑channel delivery TangenT communica Tions plc  annual report and accounts 2008  03
Clients include:
Clients include:
Clients include:
using web-based templates, localised marketing 
materials including point of sale, posters, email 
messaging and direct mail are available on demand 
to local managers, letting them respond to trading 
conditions in real-time while remaining consistently 
on-brand and on-message.
this lets central marketing teams devolve as much 
control as they want from HQ to local operations; 
a system with very significant potential to 
retailers, banks, charities and any business 
with distributed operations. 
an elusive statistic in many forms of advertising 
and marketing, r Oi is easy to verify in detail 
using taobase™, tangent’s proprietary 
operating environment. 
built from the ground-up for marketers, taobase acts 
as a central data repository for content and imagery 
that can then be re-purposed for use in websites, 
email messaging and print materials. 
it also stores customer data, allowing outbound 
communications to be fully personalised. 
response is then tracked from message 
to transaction.
using each delivery mechanic for its particular 
strengths, tangent helps clients communicate with 
their customers in the most effective and natural 
way for each individual message.
it provides clients with a channel neutrality that 
ensures their marketing is delivered in the best 
way for them, rather than artificially shoehorning 
marketing spend into one channel merely because 
it’s the only one available.
tangent’s marketing interfaces are designed to be 
used with minimal training and no knowledge of 
it whatsoever, empowering organisations from the 
bottom up. as a trailblazer in these technologies, 
tangent is well placed to grow its position in this 
market very rapidly. 
Toolkit™ enables local managers and head office 
staff alike to specify and order templated print 
materials from menus to personalised greeting 
cards entirely via the internet. 
With no installation necessary, toolkit™ is available 
using a web browser from any computer. a secure 
username and password controls access to accounts, 
which can be controlled and capped centrally for 
complete budgetary control. Once implemented, 
toolkit™ is a revolution for clients and an excellent 
driver of production efficiencies for T angent.
The other benefit of providing the full range of 
channels is that even if tangent is not required to 
deliver across all of them, our deep understanding 
of those communications methods means any 
marketing we undertake will be sympathetic 
to other work the client is undertaking. 04 		 T A ngen T	 comm U nic A T ions 	 plc  annual report and accounts 2008
T a n g e n t 	 h a s 	 h a d 	 a n 	 e x c e l l e n t 	y e a r 	 i n 	 t e r m s 	 o f 	 p r o fi t , 	 c a s h	
generation and earnings per share. i am delighted that we 
are now able to propose our maiden dividend of 0.2p per 
s h a r e . 	 T h i s 	 i s 	 c o v e r e d 	 o v e r 	 fi v e 	 t i m e s 	 b y 	 u n d e r l y i n g 	 b a s i c	
earnings and we intend to have a progressive dividend policy. 
The board considers that, over the long term, dividends will 
form an important part of total shareholder return.
CHairman’s statement
The management team at 
Ravensworth…has diversified 
into new markets TangenT communica Tions plc  annual report and accounts 2008  05
nick green and tim green’s joint chief executives’ 
review explains in detail how this has been 
achieved, and they and graeme Harris, the 
finance director, and all our employees 
deserve considerable commendation.
the management team at ravensworth, which 
operate our large digital printing operation, has 
not only continued to grow their active customer 
numbers in the residential estate agency services’ 
business but has also diversified into new markets. 
thus, while it is likely that sales per estate agency 
customer will be lower this year, the business 
can continue to prosper.
in January 2008 we made a proposal to acquire 
tmn group, an aim listed company which in stock 
market terms was about twice the size of tangent. 
t he combination of tangent and tmn group 
would have produced a powerful force with a full 
set of digital marketing services with the potential 
to cross-sell our respective services. However, during 
the early part of april it became clear to us that we 
should not pursue the proposal in what appeared 
to be becoming an auction process. tangent did 
not incur any material costs associated with making 
the proposal. tangent will continue to look for 
appropriate acquisition opportunities whilst 
maintaining investment discipline.
Now looking forward, we have confidence in our 
future. We are a relatively small company which 
through hard work, considerable innovative talent 
and a strong financial base can grow substantially 
in probably some weaker markets by taking extra 
increments of marketing budgets, particularly by 
digital conversion. We don’t have expensive offices 
or extravagant marketing costs and management 
is rewarded substantially from results not salaries.
Finally, i am pleased to report that greg Jackson, 
a founder of C360, which is now tangent l abs, 
joins the board today and he will add great insight 
into our online marketing operation where we see 
a significant opportunity for growth.
piers caldecote 
non-executive chairman
14 may 2008 
I am delighted that we are 
now able to propose our 
maiden dividend of 0.2p 
per share. 06  TangenT communica Tions plc  annual report and accounts 2008
the marketing services sector has embarked on 
a process of radical change. marketing services 
companies in the future will look very different 
from those we see today and they are likely to 
be technology-driven.
tangent is an innovative player. Our proprietary 
technologies allow us to offer services which 
other suppliers find hard to replicate. We are 
applying technological solutions to redefine 
what marketing services can be about. 
Our business philosophy is unlike many of our 
competitors. We partner with clients and engage 
with them at every stage of the marketing journey. 
We develop bespoke solutions, analyse their 
effectiveness and refine and enhance those 
solutions in the light of that information. 
We have built a tightly integrated 
business supported by a highly efficient 
technology infrastructure. the focus of the 
business is on solving business problems for 
marketing professionals. 
tangent also applies data consolidation services. 
We design, build and maintain sophisticated 
e-commerce sites. We help our customers to 
increase the effectiveness of their communications 
via direct mail, emails, sms and the web. We 
empower local managers to launch campaigns and 
targeted communications and provide centralised 
control for brand managers.
Our proprietary technology platform is a key 
advantage. Very few competitors have the 
infrastructure in place to develop and host 
hundreds of thousands of individualised 
websites in a very short timeframe. 
For tangent it’s a core competence. 
Our database solution taobase has the ability to 
accept data sent from a variety of sources to create 
rich multi-channel content output. in late 2007 
when l abour went on election alert we used 
this system to ensure the party was ready, with 
dedicated websites for every mp and individualised 
mail for every constituency available for printing 
in runs from one to 100,000.
One-to-one marketing is a holy grail for many 
businesses, but frequently the absence of a single 
standardised database is a major stumbling 
block. Our ability to cleanse and provide access 
to customer data overcomes this problem. it is 
often a starting point for additional services. 
We were pioneers in digital direct marketing 
and have been active in this area for more 
than a decade. toolkit, our marketing management 
system, empowers local managers to devise and 
manage campaigns. they can use the system to 
create brand-sensitive, tailored communications 
that meet the needs of specific customers on 
the ground. Brand managers in head offices 
can control their brands while also allowing 
far greater local involvement. 
recognising that value resides in usefulness for 
customers, we charge for usage based on the 
number of touchpoints with our systems. that 
maximises clients’ flexibility, allowing anyone 
in the business to use our systems for their 
specific needs. 
We have the infrastructure to handle 
large-scale operations. On any given day we 
may receive 10,000 electronic orders from 
around the country. a ll are processed and 
delivered within 24 hours. Our experience 
in delivering service successfully at scale 
is winning the trust of our customers and 
opening up new business opportunities.
t he r avensworth acquisition added a key piece 
to the jigsaw in our quest to deliver an integrated, 
comprehensive digital marketing service. europe’s 
largest dedicated digital printing facility produced 
around 80m digital pages for over 3,000 customers 
last year. 
Tangent now has a foothold in a significant 
vertical market. it is the market leader in the 
uK residential property market and the number 
three uK Hips supplier.
since the acquisition, the digital printing business 
has exceeded expectations. it has introduced 
new revenue streams and is rapidly diversifying 
its client base. 
more importantly, the addition of an integrated 
digital facility takes us a step closer to achieving 
our goal of providing one-stop marketing services. 
We have gained the ability to manage major 
national data-driven mailing campaigns in-house. 
business reVieW: O VerVieW
Our proprietary technologies 
allow us to offer services 
which other suppliers find 
hard to replicate. TangenT communica Tions plc  annual report and accounts 2008  07
When Borders UK was bought from its 
American owner, they decided to terminate 
their relationship with Amazon.co.uk and 
hired Tangent to create their brand new 
British web shop. 
The 	 scale 	 of 	 the 	 project 	 proved 	 an 	 excellent 	 demonstration	
o f 	 t h e 	 p o w e r 	 a n d 	 fl e x i b i l i t y 	 o f 	 T a n g e n t 	 l a b s ’ 	 T a o s h o p 	 p r o d u c t ,	
w h i c h 	 a c c e p t e d 	 t h e i r 	 i n v e n t o r y 	 o f 	 o v e r 	 1 . 3 m 	 p r o d u c t s 	 q u i c k l y	
and easily.
innovation in the site’s faceted navigation is designed 
t o 	 make	it	as	easy	as	possible	for	visitors	to	filter	the	site’s	
extensive 	 range 	 of 	 books, 	c Ds, 	 DVDs 	 and 	 video 	 games, 	 while 	
retaining consistency of both design and layout throughout.
Tangent was also retained to run Borders’ digital 
marketing, including personalised email, pay per click 
marketing, search engine optimisation and online pR. 
using synergies from the site’s personalisation algorithms 
to personalise both advertising and communications creates 
a 	 startlingly 	 adaptive 	 and 	 engaging 	 experience 	 for 	 shoppers.
each	Borders	store	now	benefits	from	its	own	localised	
site, updated by staff using Tangent labs’ proprietary 
Web creator system. staff picks and reviews are then 
automatically uploaded to the web shop, enriching 
content and providing another key point of difference 
from its competitors.
Finally, Tangent supplies Borders’ localised marketing 
materials	with	point‑of ‑sale	materials	ordered	online	
using a simple interface, all of which are centrally 
controlled	to	be	on‑brand	and	on‑message.
Case study:
Borders & Books Etc 08  TangenT communica Tions plc  annual report and accounts 2008
PeRSOnal
t he step-change in the scale of our business 
is enhancing our capacity to work with larger 
organisations. in the past, marketing departments 
expressed interest in our technologies, but some 
found it difficult to allocate significant budgets 
to a relatively small company. t he newcastle 
facility is helping us to make the case to clients and 
potential clients that we have the experience and 
the capabilities to handle large-scale contracts.
many of our customers are migrating their 
operations from non-digital to digital and they 
see us as a consultative partner. increasingly, 
we are being appointed on retainer to deliver 
consultancy services. 
tangent is unusual in its ongoing commitment 
to client service. We provide our customers 
with tools to measure the effectiveness of the 
multi-channel digital solutions we develop on 
their behalf and we work closely with them to 
ensure they get the most out of our systems. 
the creative dimension to the solutions we offer 
is becoming increasingly important. We always 
ensure that our data reporting is attractively 
visualised and this has led to a number of 
opportunities. We are able to deploy both designers 
and developers across multiple channels and can 
offer both local and national coverage.
by engaging closely with clients we are developing 
our knowledge and capabilities. We recently 
delivered a sophisticated e-commerce site for the 
bookseller borders. as a result of this success we 
are now working with them to develop a search 
engine marketing (sem) solution, strengthening 
our integrated offer and generating new sales 
opportunities with our existing client base. 
there are clear advantages for customers 
in using multi-channel services on a single 
platform. at the same time we recognise that 
to gain the maximum value from our services, 
customers may need to adjust their practices. 
there are business transformational issues at 
stake. We need to win customers’ confidence 
and that takes time. 
We therefore focus on establishing client 
relationships in specific areas where our 
approach adds immediate value. We compete 
against website developers for e-commerce sites, 
against it service businesses for data integration 
and analysis work and against marketing service 
companies for direct mail fulfilment. As we 
progressively win pitches on numerous fronts 
our profile is steadily increasing.
We are strengthening our positioning 
as a tightly integrated digital marketing services 
company supported by a strong technological 
infrastructure. around 25% of our revenues are 
currently generated by servicing more than one 
business area. We estimate that by the end of 
2008 multiple services will account for over 50% 
of total revenue.
t he current trend for companies to transfer above 
the line advertising budgets to below-the-line 
activities is likely to accelerate. With budgets 
constricting, marketing departments want better 
information to justify their spend. 
tangent’s positioning stands it in good stead. 
Our powerful infrastructure allows us to provide 
a bespoke service that can often be delivered 
more quickly and cost-effectively than our 
competitors. powerful tracking functionality 
allows customers to monitor and measure the 
effectiveness of their campaigns very precisely. 
We stay with our clients to deliver a joined-up 
marketing service. We provide strategic advice, 
build bespoke systems and deliver personalised 
electronic and printed materials. t hroughout 
the marketing journey we remain completely 
accountable to the client. in turn, that is helping 
us unearth new problems and allowing us to grow 
the business organically.
business reVieW: O VerVieW COntinued TangenT communica Tions plc  annual report and accounts 2008  09
Case study:
SAP
SAP is the world’s largest supplier of 
enterprise software, and its customers 
rank among the largest organisations in 
the world. Tangent’s work with SAP centres 
on design and implementation of innovative 
new interfaces that talk directly SAP’s 
ubiquitous back-end data structures.
sap ’s application interfaces are at work in businesses 
worldwide and in use by sap itself for account and sales 
management, project management and a range of internal 
processes. Working directly with sap ’s internal iT department, 
T angent has helped create new uis (user interfaces) that bring 
together related functionality on a single screen.
as well as deep technical skill and understanding, T angent’s 
information architecture and creative teams were deployed 
t o 	 e n s u r e 	 n e w 	 d e v e l o p m e n t s 	 a r e 	 c e n t r e d 	 fi r m l y 	 a r o u n d 	 t h e	
needs 	 of 	 the 	 user , 	 promoting 	 efficiency 	 and 	 user 	 acceptance.
Tools developed by Tangent are already mature enough to 
be 	 rolled ‑ out 	 globally 	 by 	s A p	 and 	 are 	 in 	 use 	 by 	 thousands 	
o f 	 u s e r s 	 i n 	 a l l 	 fi v e 	 c o n t i n e n t s 	 o n 	 a 	 d a i l y 	 b a s i s .	 10  TangenT communica Tions plc  annual report and accounts 2008
l Ocal
performance
We are pleased to report on what has been 
a breakthrough year for tangent. We have 
made significant progress towards our key 
objectives and are steadily growing the 
business. This confidence is reflected in 
the board’s announcement of the company’s 
first ever dividend payment for shareholders.
tangent doubled in size during the year. 
r evenue increased by over 100% to £17.36m 
(2007: £8.61m). Profits grew even more 
significantly. Underlying operating profit for the 
year stood at £2.44m compared with £1.07m 
in the prior year. tangent remains a strongly 
cash-generative business. Cash generated from 
our operations increased to £2.55m (£1.18m) and 
profits converted into cash at a rate of 105%.
Profitability is also up significantly. We achieved 
an operating margin of 14%, 1.6% ahead of the 
previous year’s record performance. two years 
ago we were achieving margins of just 9.5%. 
The steady improvement in profitability is an 
important indicator of the success of our strategy 
to increase the percentage of our earnings which 
come from pure technology sales.
The year in focus
We made good progress towards realising our 
ambition of building an integrated business 
with a strong technological infrastructure.
the acquisition of ravensworth in march 2007 was 
a very important step in tangent’s development. 
it created good new revenue streams. it gave us 
the capability to deliver new outputs and, crucially, 
it has given us the scale to compete for larger 
contracts and bigger clients. We are therefore 
increasing the size of the newcastle facility by 
10,000 sq ft to a total of 25,000 sq ft.
as part of t angent, the newcastle facility has 
had considerable success in attracting new clients 
with national data-driven digital campaigns. in 
december tangent started working with one of 
the uK’s largest direct marketing companies in 
converting their customer communications from 
non-personalised to personalised. a lthough 
work remains at an early stage the win was only 
achieved through the demonstration of tangent’s 
increased scale and digital capabilities. 
tangent is also providing new services in the 
property arena. From a standing start in June 
2007, tangent is now the u K’s third largest 
supplier of Home information packs (Hips) and 
we expect to improve on this position during 
the next quarter.
We have also extended our leadership in online 
local marketing solutions. With new large 
corporate accounts added we have more than 
doubled the number of daily orders received 
this year. t housands of local managers are 
now using tangent online tools to construct 
marketing campaigns using point of sale, direct 
mail, email or sms. this creates two advantages 
for local managers, first is the speed to market 
against their competitors and second is the 
ability to customise to local conditions. 
the tools we provide continue to develop 
and deliver for local branch networks and 
will provide a sector for growth in 2009.
We emphasise long-term partnerships with 
our customers. Our approach is not simply to 
provide products, but to get to grips with our 
customers’ concerns. We then propose innovative 
solutions that take advantage of the leverage 
and measurability afforded by technology. 
We design, build and operate systems to meet 
specific needs. Our customers know that we will 
not only give them the tools they need, we will 
work with them to maximise their effectiveness 
business reVieW: CHieF exeCutiVes’ reVieW
c ash generated from our 
operations increased to £2.55m. TangenT communica Tions plc  annual report and accounts 2008  11
Politics used to involve soapbox speeches 
and an awful lot of shoe leather. In these 
days of digital and localised marketing, 
political parties still need to express their 
views perspicuously, but now have an array 
of channels to distribute carefully targeted 
materials to the voters that matter most.
Tangent is the l abour party’s digital partner, encompassing 
w e b 	 s t r a t e g y , 	 t h e i r 	 n a t i o n a l 	 w e b 	 p r e s e n c e , 	 m p s ’ 	 s e l f ‑ m a n a g e	
websites, email and mobile marketing, as well as a suite of 
services from online donations reporting to membersnet, 
labour’s highly sophisticated and secure intranet.
We also supply their fully personalised local marketing, 
which is available at a constituency level, letting local 
leaders control their own mailings. Templating is taken 
care of centrally, ensuring a level of both budgetary and 
creative control.
Tangent and Tangent labs have become trusted long term 
partners for both off and online marketing. 
“ p e o p l e 	 r e m e m b e r e d 	 m e 	 f r o m 	 t h e 	 fi r s t 	 d i r e c t 	 m a i l ,	
so i could be personal about the issues we are addressing 
in our community and pick up on the issues that have 
been raised by them.” 
James Walsh, colnbrook local labour candidate
Case study:
The Labour Party 12  TangenT communica Tions plc  annual report and accounts 2008
Our strength in technology 
gives us a clear competitive 
advantage in our core markets.
Mul TI‑ 
channel
business reVieW: CHieF exeCutiVes’ re VieW COntinued
71% 
of total revenue realised through 
Tangent’s proprietary technology 
platforms
Ravensworth client base grows to
3,000 
up 27% against prior year
and will remain accountable. For example, from 
building a retail website hosting 1.3m products 
we were able to add a fully integrated search and 
email marketing service.
the ability to measure marketing effectiveness 
is a key element in what we can offer. technology 
and pressure on budgets are driving demands 
for improved measurability from marketing 
professionals. Our strength in technology gives 
us a clear competitive advantage in our core 
markets as well as generating intellectual property 
which enables us to move into new markets, for 
example through our joint venture Zui.
outlook
We are generally confident about the outlook 
for the business.
in the year under review we saw uncharacteristic 
seasonal fluctuation in the business. The property 
market is traditionally most active in the first half, 
and our interim profits reflected this. This seasonality 
is not expected to be repeated in the current year, 
partly because the contribution from property 
particulars is down due to the state of the property 
market, but more significantly because the business 
has grown into other sectors. 
We are seeing growth in our technology-based and 
online activities and we expect to see this growth 
offset any decline in our property business. We are 
experiencing growth in high margin digital services 
such as e-commerce, websites, search marketing 
and email delivery. We have gained some important 
new clients for our local digital solutions. 
tangent is a growing business. We remain alert 
to opportunities to scale up our activities, through 
organic growth, by extending the breadth of 
what we offer and, where relevant, via strategic 
acquisitions. We continue to focus on growing 
while remaining a strongly cash-generative business. 
We expect to see consolidation opportunities 
arise during the year and we are well placed 
to take advantage. 
We would like to thank all employees for their 
hard work and excellent contribution during the 
year and look forward to another year of growth.
nicholas green and Timothy green
Joint chief executives
14 may 2008 TangenT communica Tions plc  annual report and accounts 2008  13
As a significant supplier to the UK property 
market, Ravensworth’s potential for providing 
an end-to-end service for printed Home 
Information Packs presented an opportunity 
to add considerable incremental volume 
to the business. 
With over 3,000 estate agency branches already using 
Ravensworth’s infrastructure and ordering system on 
a	daily	basis,	we	started	with	a	significant	head	start	in	
rolling out this new product. 
The other advantage was our insight into the property 
m a r k e t , 	 w h i c h 	 e n a b l e d 	 u s 	 t o 	 b u i l d 	 a 	 u n i q u e 	 p o r t f o l i o	
of Hips provider clients, servicing both localised markets 
v i a 	 s o l i c i t o r s 	 a n d 	 e s t a t e 	 a g e n t ‑ b a s e d 	 p a c k 	 s u p p l i e r s 	 a s	
well as nationwide corporate providers and high volume 
conveyancing organisations.
Ravensworth’s proprietary technology collects pack content 
from any source, controls document layout, composition 
and template design, applies correct branding and outputs 
print ‑ ready 	 files 	 for 	 web 	 upload 	 or 	 distribution 	 by 	 email.
All	printed	packs	are	dispatched	within	48	hours	of	order	
receipt,	with	month‑on‑month	growth	already	exceeding	
30% and a healthy pipeline of opportunities, which we 
expect	to	continue	to	deliver	strong	revenue	growth.
Case study:
HIPs 14 		 T A ngen T	 comm U nic A T ions 	 plc  annual report and accounts 2008
The acquisition of 
Ravensworth was completed 
and it has subsequently 
performed ahead of 
expectations.
Operating profit margin
14%
Revenue increased
102%
business reVieW: FinanCial reVieW
overview
the year ended 29 February 2008 was another 
year of significant achievement for Tangent. 
Within a month of the beginning of the year, the 
acquisition of r avensworth was completed and it 
has subsequently performed ahead of expectations. 
With further organic growth in our existing 
business and a high operating cash conversion 
rate, the board has taken steps to enable tangent 
to pay a dividend and we will propose a maiden 
dividend at the annual general meeting on 
24 July 2008.
Key performance indicators (Kpis)
We manage tangent’s business using Kpis which 
measure underlying performance. For the year 
under review and the prior year, underlying 
performance excludes only the share-based 
payment charge.
We believe that our focus on the Kpis as set out 
below will in the medium and long term deliver 
value for shareholders:
 revenue doubled to £17.36m (2007: £8.61m);
   underlying operating profit increased by 128% 
to £2.44m (2007: £1.07m);
  underlying operating margin improved to 14.0% 
(2007: 12.4%);
  underlying basic earnings per share grew 
by 31% to 1.24p (2007: 0.95p); and
  operating cash generation increased by 117% 
to £2.55m (2007: £1.18m) representing a cash 
conversion rate of 105% (2007: 110%) 
of underlying operating profit.
Trading performance
t he acquisition of r avensworth in march 2007 
made a significant contribution to the more than 
doubling of revenue and underlying operating 
profit. Nevertheless, excluding this acquisition, 
revenue increased by 16% and underlying 
operating profit grew by 22%.
share‑based	payment	charge
the share-based payment charge of £0.40m 
(2007: £0.39m) is for the fair value of options 
granted and mostly relates to those granted 
in 2005. t his charge has been excluded from 
underlying operating profit as there is no related 
cash flow and it results in no reduction in equity 
attributable to shareholders.
T axation
the tax charge of £0.55m (2007 £0.09m) 
equates to 26.4% of profit before tax. After 
adding back the share-based payment charge, 
which is excluded from the calculation of taxable 
profits, the underlying tax rate was 22.1% 
(2007: 8.0%). The tax charge is significantly 
lower than the standard corporation tax rate 
of 30% because the group has the benefit of past 
tax losses. the increase in the underlying tax rate 
compared with the prior year arose because 
profits from acquisitions do not benefit from 
these tax losses. at the year end the group had 
£0.7m of tax losses available to offset against 
future profits.
earnings
Underlying profit before tax increased to £2.5m 
(2007: £1.08m). Underlying profit after tax 
increased to £1.94m (2007: £0.99m) which 
equates to underlying basic earnings per share 
of 1.24p (2007: 0.95p) and underlying diluted 
earnings per share 1.11p (2007: 0.86p). TangenT communica Tions plc  annual report and accounts 2008  15
Net funds
£2.43m
Operating cash
£2.55m
Acquisitions
On 27 march 2007 tangent acquired r avensworth, 
a digital marketing business, for £6.04m including 
expenses. the acquisition was completed without 
any contingent or deferred consideration. to fund 
the acquisition tangent issued 50m new shares, 
mostly placed with institutional fund managers 
that invested in Tangent for the first time.
in the period since acquisition, r avensworth 
contributed £1.13m to underlying operating profit, 
which is a 15.3% margin on sales of £7.4m. Cash 
generation has also been strong with a contribution 
of £0.88m to net funds since acquisition.
during the year the directors’ estimate of the 
future consideration payable for C360, which 
was acquired in July 2006, increased by £1m. Our 
estimate, reflected in the financial statements, 
is that the maximum contingent consideration will 
be payable.
cash	flow
Operating cash flow of £2.55m (2007: £1.18m) 
was strong and tracked closely to underlying 
operating profit. Tax payments of £0.59m 
(2007: £0.03m) were a significant cash 
outflow for the first time.
Capital expenditure of £0.64m (2007: £0.50m) 
was mostly spent on new digital equipment.
Over the year, net funds improved by £1.38m 
to £2.43m (2007: £1.05m).
Balance sheet
the year end net assets were £19.38m compared 
with £10.23m for the prior year. the main change 
arises from the consolidation of the r avensworth 
balance sheet for the first time and goodwill arising 
from acquisitions. the £6.47m increase in goodwill 
includes £5.47m for ravensworth and £1m for 
additional future consideration payable for C360. 
in January 2008 the capital structure 
of tangent was changed at a general meeting, 
and subsequently confirmed by the High Court, 
to enable the payment of dividends. the net effect 
was to increase retained earnings by £20.6m and 
reduce the share premium reserve by £13.17m and 
the merger reserve by £7.43m. net assets were not 
affected. the cost of the restructuring has been 
recognised within operating expenses.
Dividends
the board believes that paying a dividend is 
an important part of providing total shareholder 
return. We will propose a maiden dividend of 
0.2p per share at the annual general meeting 
on 24 July 2008. if approved, the dividend will 
be paid on 22 a ugust 2008 to shareholders on 
the register on 25 July 2008. the proposed dividend 
is covered 5.8 times by underlying earnings.
international Financial Reporting standards (iFRs)
as required by aim, the alternative investment 
market of the london stock exchange, t angent 
has fully adopted iFrs from 1 march 2007. the 
prior year comparative numbers are restated as 
required under iFrs. 
the main adjustment on transition to iFrs arose 
from the revised treatment of goodwill for which 
a goodwill amortisation charge of £0.39m has 
been reversed and reinstated on the balance sheet.
T reasury ,	funding	and	exchange	risk
The group finances its operations through funds 
raised from shareholders, retained earnings and 
finance lease borrowings. The funding structure 
comprises variable rate borrowings and cash 
balances to maintain a high level of financial 
flexibility for potential acquisitions and investments. 
r egular reports on cash balances and borrowings 
are provided to the board. 
the majority of trade is conducted in sterling 
although a material amount is denominated in 
euro. the directors monitor exposure and, where 
possible, match euro-denominated revenue and 
expenditure or hedge some of the exposure to 
mitigate the foreign exchange risk.
graeme Harris
Finance director
14 may 2008
UNDERLYING BASIC EPS
(p)
UNDERLYING OPERATING PROFIT
(£000)
REVENUE
(£000)
17,361
8,605
6,608
08 07 06
2,438
1,070
626
08 07 06
1.24
0.95
0.82
08 07 06 16  TangenT communica Tions plc  annual report and accounts 2008
bOard OF direCtOrs
1
3
2
5 6
4 TangenT communica Tions plc  annual report and accounts 2008  17
secretary
graeme Harris
Registered	office	
truscott House  
32–42 east road  
london n1 6ad
company registration number
3967805
nominated adviser and broker
Collins stewart limited
88 Wood street 
london eC2V 7Qr 
Bankers
HsbC bank plc
60 Queen Victoria street 
london eC4n 4tr
auditors
uHY Hacker Young llp
Quadrant House 
17 thomas more street 
thomas more square 
london e1W 1YW
Registrar
Capita registrars 
northern House  
Woodsome park 
Fenay bridge 
Huddersfield 
West Yorkshire Hd8 0la
solicitors
pinsent masons llp
Citypoint 
One ropemaker street 
london eC2Y 9aH
rosenblatt 
9–13 st andrew street 
london eC4a 3aF
adVisers
1.  piers caldecote 
non-executive chairman (age 61)
piers was an associate director 
at Carlton Communications plC 
between 1990 and 2004 covering 
strategy and mergers and acquisitions. 
prior to that, he worked in the city 
as an investment analyst, latterly 
for Chase manhattan securities. 
3. Timothy green
Joint chief executive officer (age 32)
prior to joining tangent, timothy was 
a founding partner at unanimis, which 
specialises in internet commercial services 
for clients such as ebay and the bbC. prior 
to this timothy worked at ask Jeeves in the 
commercial team.
5. greg Jackson
executive director (age 36)
greg co-founded the data-driven agency C360 
in 2003, which was acquired by tangent in 2006. 
He is a graduate of Cambridge university, and his 
career prior to C360 included running a database 
business, being a brand manager at procter 
and gamble and writing high performance 
software. greg is responsible for tangent’s 
online strategy.
2. nicholas green
Joint chief executive officer (age 35)
prior to joining tangent, nicholas worked 
at advertising.com as european sales and 
marketing director. the company specialises 
in performance based marketing and was 
successfully sold to aOl in 2004 for $439m. 
prior to advertising.com, nicholas worked 
at teletext for seven years in the 
commercial department.
4.	graeme	Harris
Finance director (age 41)
Graeme was finance director of Coutts Holdings plc 
where he worked on its initial flotation and on 
a series of acquisitions in the marketing services’ 
sector. He oversaw the successful sale of Coutts 
to media square plc for £22.5m. graeme is an 
economics graduate of manchester university 
and qualified as a Chartered Accountant with 
ernst & Young in london.
6. paul murray
non-executive director (age 46)
Paul was group finance director 
at Carlton Commuications plC between 
2001 and 2004. prior to that he was 
group finance director at LASMO PLC. 
He currently sits on the boards of 
market researcher taylor nelson 
sofres plC, where he is the senior 
independent director, and 
t homson sa , the French 
media technology company. 18  TangenT communica Tions plc  annual report and accounts 2008
The directors present their report and audited financial statements of the group for the year ended 29 February 2008.
principal activity and review of the business
The principal activity of the group is the provision of customised marketing services. A review of the business, its future development and its key performance 
indicators can be found in the chief executives’ review and the financial review.
Results and dividends
The consolidated profit for the year amounted to £1,542,000. The directors recommend the payment of a dividend of 0.2p per ordinary share to be paid on 
22 August 2008 to shareholders on the register at the close of business on 25 July 2008. Further information on the group’s results and financial position 
is included in the financial review.
company listing
Tangent is listed on the Alternative Investment Market (AIM) of the London Stock Exchange. The market code for the company is TNG. 
Information required by AIM Rule 26 is available in the investor relations’ section of Tangent’s website at www.tangentuk.com.
acquisitions
On 27 March 2007 Tangent acquired the entire share capital of Ravensworth Digital Services Limited. Total consideration before costs was £5.85m, 
of which £5.41m was paid in cash and £0.44m was paid in shares valued at 13p each. There is no deferred or contingent consideration payable 
on this acquisition.
changes in share capital
On 23 March 2007 the authorised share capital of the company was increased to £2.25m. The acquisition of Ravensworth Digital Services Limited 
was funded by the issue of 50,011,828 ordinary shares at 13p per share over 26 and 27 March 2007, of which 46,615,385 shares were placed.
Tangent undertook a capital reorganisation during the year in order to be able to pay dividends. As part of this procedure, at a general meeting 
on 17 January 2008, the authorised share capital was increased from £2.25m to £9.68m and the merger reserve was capitalised by the creation 
of 743,015,600 deferred shares of 1p each. At the same general meeting the deferred shares were all cancelled, a balance of £13.17m on the share 
premium was cancelled and the authorised share capital was then reduced to £2.25m. The resolutions required the approval of the High Court before 
taking effect and this approval was granted on 6 February 2008. The overall effect of the reorganisation was to increase the distributable reserves of the 
company by £20.6m and reduce the share premium account and merger reserve by the same amount in aggregate thus eliminating the company’s 
retained losses of £8.58m at the beginning of the year. Net assets of the company were not affected.
On 19 February 2008 the company issued 4,175,000 ordinary shares as part of the contingent consideration for C360 UK Limited.
At 29 February 2008 and at the date of this report the number of issued ordinary shares is 165,966,835.
Directors
During the financial year the following directors held office:
Piers Caldecote  
Nicholas Green  
Timothy Green  
Graeme Harris  
Paul Murray (appointed on 26 March 2007)
Greg Jackson was appointed as a director after the year end, on 14 May 2008.
Directors’ interests 
At 29 February 2008 the directors’ shareholdings were as follows:
        Ordinary shares of 1p each
        29 February 28 February 
        2008 2007
Piers Caldecote       1,250,000 —
Nicholas Green       2,730,770 2,500,000
Timothy Green       2,730,770 2,500,000
Graeme Harris       500,000 500,000
Greg Jackson^       8,597,188 6,875,000
Paul Murray       2,924,998 2,155,767*
^ Appointed to the board on 14 May 2008 
* Shareholding at appointment to the board
Directors’ interests in share options are set out in the directors’ remuneration report.
DIRECTORS’ REPORT
FOR THE yEAR ENDED 29 FEbRUARy 2008 TangenT communica Tions plc  annual report and accounts 2008  19
substantial shareholdings
The directors are aware of the following shareholdings of 3% or more of the issued share capital of the company at 6 May 2008.
         % of issued 
        Ordinary ordinary 
        shares of  share 
beneficial holder       1p each capital
Michael Green        53,076,924 32.0%
Hargreave Hale       11,323,680 6.8%
Nicholas Gillett
#
       8,597,188  5.2%
Merrill Lynch & Co Inc       5,038,000 3.0%
# A vendor of C360 UK Limited and senior employee within the group.
Institutional shareholders with an interest of between 1% and 3% of the issued share capital of the company at 6 May 2008 were as follows:
Aberdeen Asset Management 
AXA Framlington Investment Management 
bluehone Investors 
Discretionary Unit Fund 
Herald Investment Management 
Invesco Asset Management 
ISIS Equity Partners 
Savoy Investment Management 
Singer & Friedlander Investment Management 
Unicorn Asset Management
suppliers payment policy 
It is the group’s policy that payments to suppliers are made in accordance with those terms and conditions agreed between the group and its suppliers, 
provided that all trading terms and conditions have been complied with. At 29 February 2008, the group had an average of 58 days (2007: 72 days) 
purchases outstanding in trade creditors.
employees
The group recognises the benefit of keeping its employees informed of all relevant matters on a regular basis. The group is an equal opportunities 
employer and all applications for employment are considered fully on the basis of the suitability for the job. 
Use of financial instruments
Tangent’s financial risk management objectives are to minimise debt, to fund acquisitions through a mixture of equity financing and cash and to ensure 
sufficient working capital for the group’s overhead and capital expenditure commitments. This is achieved by prudent financial management and careful 
management of the group’s cash balances, both short and long term. The financial risk management objectives and policies of the group set out in note 21 
of the financial statements include the group’s exposure to currency, credit, liquidity and credit risk.
Key risks and uncertainties
The key risks and uncertainties for the group are identified as exposure to further declines in the residential property market, currency rate risk from 
significant payments to suppliers in euro and the effect of larger technology companies replicating some of Tangent’s technical innovations.
Donations
During the year the group made charitable donations of £9,000 (2007: £1,000) and a political donation to The Labour Party of £6,000 (2007: nil). 20  TangenT communica Tions plc  annual report and accounts 2008
DIRECTORS’ REPORT CONTINUED
FOR THE yEAR ENDED 29 FEbRUARy 2008
statement of directors’ responsibilities
Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the 
company and of the group and of the profit or loss of the group for that period. In preparing those financial statements, the directors are required to:
 select suitable accounting policies and then apply them consistently;
 make judgements and estimates that are reasonable and prudent;
  state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial 
statements; and
 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.
The directors confirm that the financial statements comply with the above requirements.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the 
group and which enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding 
the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
auditors
So far as the directors are aware:
 there is no relevant audit information of which the company’s auditors are unaware; and
  each director has taken steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the 
auditors are aware of that information. 
A resolution that UHy Hacker y oung LLP be re-appointed as auditors of the company will be put to the annual general meeting.
by order of the board
graeme Harris
Secretary
14 May 2008
  TangenT communica Tions plc  annual report and accounts 2008  21
CORPORATE GOVERNANCE STATEMENT 
FOR THE yEAR ENDED 29 FEbRUARy 2008
statement of compliance
Although AIM listed companies are not required to report on the Combined Code, the directors are committed to proper standards of corporate 
governance and will continue to keep procedures under review. 
Board and board committees
For most of the year the board of directors comprised two non-executive directors and three executive directors. The second non-executive director was 
appointed on 26 March 2007. The full board manages overall control of the group’s affairs by the schedule of matters reserved for its decision. 
These include the approval of financial statements, acquisitions and disposals, authority levels for expenditure, and review of monthly and other 
management reports. The chairman will continue to review the skills and balance of the board as the group grows.
The directors are able to take independent professional advice in the furtherance of their duties at the company’s expense and all directors have access 
to the advice and services of the company secretary.
The board considers its non-executive directors to be independent. An independent director is one who has no relationship with the company or its 
management which may undermine independence and who is not dependent on the company or its management for his primary source of income, was not 
within the last three years a senior manager of the company and does not participate in the company’s incentive bonus scheme or pension schemes.
The board delegates day-to-day and business management control to the executive directors who are in regular contact with each other. Formal decisions 
are communicated throughout the group. The executive directors are responsible for implementing group policy, the monitoring and performance of the 
business, and reporting to the full board thereon.
The company has an audit committee, whose terms of reference cover the points recommended by the Code. Its duties include monitoring internal 
financial control throughout the group, approving the group’s accounting policies and reviewing the interim and annual financial statements before 
submission to the board. On 26 March 2007 the audit committee was reconstituted to include non-executive directors only. Paul Murray joined the audit 
committee as its chairman and Piers Caldecote is the other member.
The company has a remuneration committee which, on 26 March 2007, was reconstituted to include non-executive directors only. Paul Murray joined the 
remuneration committee as its chairman and Piers Caldecote is the other member.
All executive directors have rolling service contracts with the company terminable on twelve months’ notice from the company and by six months’ notice 
by the director. Non-executive directors agree a letter of appointment terminable on six months’ notice by each party. 
Following their first appointment to the board, the terms of the articles of association require all directors to retire and stand for re-election at the earliest 
opportunity. Under the articles of association all directors are required to retire once every three years. 
The nominations committee comprises all directors and is chaired by Piers Caldecote.
Relationship with shareholders
The directors consider the clear and timely communication of information to shareholders as an important part of their duties. The chief executives’ 
review and financial review provide a summary of the group’s trading performance and future outlook. The group’s website (www.tangentuk.com) also 
gives shareholders access to additional information. Furthermore, twice a year, the group’s financial results are published, in conjunction with briefings 
for investment managers and institutional analysts following the company’s interim and preliminary full year announcements, and at other ad hoc visits.
The board views the annual general meeting as an opportunity to communicate with both institutional and private investors alike and aims to comply 
with all the provisions of the Code relating to the constructive uses of annual general meetings. The directors intend to be present and available to 
answer questions at this year’s annual general meeting. 22  TangenT communica Tions plc  annual report and accounts 2008
CORPORATE GOVERNANCE STATEMENT CONTINUED
FOR THE yEAR ENDED 29 FEbRUARy 2008
Accountability and financial control
The board has overall responsibility for the systems of financial control. Implementation and maintenance of the financial control systems is the responsibility 
of executive management. The board, through the audit committee, has reviewed the effectiveness of the systems of internal financial control for the 
accounting year, and the period to the date of approval of the financial statements. It should be understood, however, that such systems are designed 
to provide reasonable but not absolute assurance against material misstatement or loss.
The company has an established framework of internal financial controls, the key features of which are as follows:
Control environment
There are clearly defined organisational responsibilities and the board is committed to employing suitably qualified staff so that the appropriate level 
of authority can be delegated with regard to accountability and acceptable levels of risk.
Information systems
The group operates a number of separate systems of financial and operational reporting to the board and senior management, based upon an annual 
budget and regular forecasts. Monthly, weekly and other periodic reports of actual results (financial and non-financial) together with key performance 
indicators are produced and discussed by the directors.
Identification and evaluation of business risks and controls
Management control is exercised at all levels of the group and is regulated by appropriate limits of authority. The directors have considered various areas 
of business risks and have developed appropriate policies to manage and diffuse those risks. These policies are reviewed in the light of known and 
perceived changes to the risks.
Quality and integrity of personnel
The group attaches high importance to the values of trust, honesty and integrity of personnel in responsible positions and operates a policy 
of recruitment and promoting suitably experienced personnel with clearly defined accountabilities. 
Investment appraisal
All major capital expenditure is included in the annual budget and is reported on to the board. In addition, all potential and actual acquisition 
opportunities are regularly reviewed by the board, both in meetings and by ad hoc reports.
Monitoring
Given the size of the group and the close day-to-day involvement of the executive directors in all of the group’s locations, no formal internal audit 
is considered necessary.
piers caldecote graeme Harris 
Director Director
14 May 2008 TangenT communica Tions plc  annual report and accounts 2008  23
REMUNERATION REPORT 
FOR THE yEAR ENDED 29 FEbRUARy 2008
introduction
The policy of the group is to offer competitive remuneration packages that will attract, retain and motivate experienced and talented individuals who will 
enhance the value of the group. The remuneration packages of the executive directors are reviewed and approved by the remuneration committee on an 
annual basis. The remuneration policies aim to incentivise and reward both short term financial performance and also shareholder value creation. 
The remuneration of other employees is the responsibility of the joint chief executives.
Remuneration of the directors
Executive directors are paid a basic salary and receive benefits in kind. The remuneration of non-executive directors requires approval by the board. 
Individual directors are not permitted to participate in decisions concerning their own remuneration.
The structure of executive directors’ remuneration was reviewed at the beginning of the year and the remuneration elements are as follows:
  a base salary, pension and benefits in kind are set at a competitive level and reflect the remuneration packages paid by companies of a similar size and 
in similar sectors; 
  an annual cash bonus of up to 50% of basic salary is payable depending upon achievement of challenging financial performance targets set at the 
beginning of each financial year. The purpose is to incentivise on the short term financial performance of the group; and
  a long term incentive plan (LTIP) under which share options with an intrinsic value up to 50% of basic salary per year are awarded to directors over a three 
year period depending upon the achievement of challenging goals based on total shareholder return over the period. The purpose is to incentivise delivery 
of long term value and to align interests with shareholders.
Audited remuneration of directors for the year under review was as follows:
        2008 2007 
     Salary bonus benefits Total Total 
     £000 £000 £000 £000 £000
Piers Caldecote    20  —  —  20  20 
Nicholas Green    100  48   9 157 124 
Timothy Green    100  48   9  157 124 
Graeme Harris    95  46   9  150 111 
Paul Murray    19  —  —   19  — 
     334  142  27  503 379 
In addition to the remuneration stated in the table above, pension contributions of £8,000 (2007: nil) were made to defined contribution schemes for 
the benefit of each of the executive directors Nicholas Green, Timothy Green and Graeme Harris.
The bonus earned by directors equates to 48% of annual salary against a maximum potential of 50% of annual salary. The bonus calculation is entirely 
based on the achievement of diluted earnings per share measured against a target and range set at the beginning of the financial year.
The audited directors’ remuneration is all classified as short term employment benefits under International Accounting Standard 24. 
share options
The company operates three share option schemes by which employees, including executive directors, are able to acquire shares, comprising an Inland 
Revenue approved scheme (The Approved Scheme), an unapproved scheme (The Unapproved Scheme), and an Enterprise Management Incentive 
scheme (The EMI Scheme). At 29 February 2008, 5,000 (2007: 5,000) options had been granted to employees under the Approved Scheme, 9,450,488 
(2007: 9,057,066) under the Unapproved Scheme and 5,415,934 (2007: 4,462,934) under the EMI Scheme.
Under the 2007 LTIP , operating through the Unapproved Scheme, Graeme Harris was granted options over 393,422 shares with an exercise price of 
1p per ordinary share. The options will vest over three years conditional upon Tangent generating a minimum total shareholder return of 10% per 
annum based on a share price of 13.01p, being the volume weighted average share price for the four weeks prior to 1 March 2007. Regulatory restrictions 
prevented the grant of options to Nicholas Green and Timothy Green so each was awarded 415,279 phantom options. The phantom options will vest 
over three years conditional upon a minimum total shareholder return of 10% per annum as above. On 1 March 2010, each phantom option that has 
vested will entitle the holders to a cash bonus equivalent to the volume weighted average share price for the four weeks prior to that date of a Tangent 
ordinary share, less 1p per share. 24  TangenT communica Tions plc  annual report and accounts 2008
REMUNERATION REPORT CONTINUED
FOR THE yEAR ENDED 29 FEbRUARy 2008
share options continued
The share options held by directors who served during the year were as follows:
       At  At 
      Exercise 1 March Granted 29 February 
     Note price 2007 in year 2008
Nicholas Green     (a) 1p 2,500,000 — 2,500,000
     (b)  5p 2,500,000 — 2,500,000
Timothy Green     (a)  1p 2,500,000 — 2,500,000
     (b)  5p 2,500,000 — 2,500,000
Graeme Harris     (a)  5p 1,100,000 — 1,100,000
     (b)   11.75p 500,000 — 500,000
     (c) 1p — 393,422 393,422
       11,600,000 393,422 11,993,422
(a)  Options granted on 27 September 2005 which have vested in full. Vesting criteria were the purchase and retention of matching ordinary shares in Tangent, achievement of 
specific business integration targets following the reverse acquisition that was completed on 11 July 2005 and continued employment. The options are exercisable between 
27 September 2008 and 26 September 2015.
(b)  Options granted on 27 September 2005 which have vested in full. Vesting criteria were targets for earnings per share performance and total shareholder return 
performance for each of the financial years that ended in February 2006, 2007 and 2008 and continued employment. Earnings per share targets were for earnings 
per share, excluding amortisation and exceptional items, to exceed 0.7p in the year ended 28 February 2006, and this target increased by 15% per annum over the 
following two years. Total shareholder return targets were that for each year total shareholder returns on Tangent shares equal or exceed the total shareholder return on 
a portfolio of smaller support services companies selected from the FTSE All Share Index. The options are exercisable between 27 September 2008 and 26 September 2015.
(c)  Options granted on 25 June 2007 under the 2007 LTIP which vest and become exercisable between 1 March 2012 and 25 June 2012 dependent on the achievement of 
total shareholder return performance in excess of 10% per annum from 1 March 2007 to the financial year ends in February 2008, 2009 and 2010. At 29 February 2008 
no options had vested under the 2007 LTIP .
The share-based payment charge for options granted to directors was £378,000 which was mostly attributable to options granted in September 2005.
The 2008 LTIP award has not been made as at the date of this report because of regulatory restrictions. The remuneration committee expects to make the 
annual LTIP awards to each executive director and Tangent will announce the details when the awards are made.
paul murray 
Director 
14 May 2008
  TangenT communica Tions plc  annual report and accounts 2008  25
INDEPENDENT AUDITORS’ REPORT 
TO THE SHAREHOLDERS OF TANGENT COMMUNICATIONS PLC
We have audited the group and parent company financial statements of Tangent Communications plc for the year ended 29 February 2008, which 
comprise the consolidated income statement, the consolidated and company statements of changes in equity, the consolidated and company balance 
sheets, the consolidated and company cash flow statements and the related notes. These financial statements have been prepared in accordance with the 
basis and the accounting policies set out therein.
This report is made solely to the company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit work has been 
undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report and for no other 
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s 
members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the annual report and financial statements in accordance with applicable law and International Financial 
Reporting Standards (IFRS) as adopted by the European Union are set out in the statement of directors’ responsibilities in the directors’ report. 
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards 
on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the 
Companies Act 1985. We also report to you whether, in our opinion, the information given in the directors’ report is consistent with the financial 
statements. In addition, we report to you if, in our opinion, the company has not kept proper accounting records, if we have not received all the 
information and explanations we require for our audit, or if information specified by law regarding directors’ remuneration and transactions with the 
company and other members of the group is not disclosed.
We read other information contained in the annual report, as described in the contents section, and consider whether it is consistent with the audited 
group financial statements. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies 
with the financial statements. Our responsibilities do not extend to any other information.
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices board. An audit 
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment 
of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies 
are appropriate to the group’s and company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with 
sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other 
irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
opinion
In our opinion:
  the financial statements give a true and fair view, in accordance with IFRS as adopted by the European Union, of the state of group’s and the 
parent company’s affairs as at 29 February 2008 and of the group’s profit for the year then ended;
  the financial statements have been properly prepared in accordance with the Companies Act 1985; and
  the information given in the directors’ report is consistent with the financial statements. 
uHY Hacker Young llp Quadrant House
Chartered Accountants 17 Thomas More Street
Registered auditors Thomas More Square
 London E1W 1yW
 14 May 2008 26  TangenT communica Tions plc  annual report and accounts 2008
CONSOLIDATED INCOME STATEMENT
FOR THE yEAR ENDED 29 FEbRUARy 2008
        2008 2007 
       Notes £000 £000
Revenue      3 17,361 8,605
Cost of sales       (9,277) (4,515)
Gross profit       8,084 4,090
Operating expenses       (5,646) (3,020)
Underlying operating profit        2,438 1,070
Share-based payment charge      23 (402) (388)
Operating profit      4 2,036 682
Finance income      7 58 8
Profit before tax       2,094 690
Tax       8 (552) (86)
Profit for the year       1,542 604
earnings per share (pence)*      9  
basic       0.98 0.58
Diluted       0.88 0.52
* Earnings per share-based on underlying profit is shown in note 9 to the financial statements. 
The results shown above relate entirely to continuing and acquired operations and are attributable to equity shareholders of the company. TangenT communica Tions plc  annual report and accounts 2008  27
CONSOLIDATED STATEMENT OF CHANGES IN EQUITy
FOR THE yEAR ENDED 29 FEbRUARy 2008
        Retained  
    Share Share Merger Other  earnings/ Total 
    capital premium reserve reserves (losses) equity 
   Note £000 £000 £000 £000 £000 £000
At 1 March 2006   951 7,860 5,189 1,319 (8,593) 6,726
Share-based payment charge   — — — 388 — 388
Issue of shares   167 — 1,833 — — 2,000
Contingent consideration   — — — 500 — 500
Release of funds on share distribution   — — — 1 9 10
Retained profit for the year   — — — — 604 604
At 28 February 2007   1,118 7,860 7,022 2,208 (7,980) 10,228
Share-based payment charge   — — — 402 — 402
Issue of shares   542 5,594 867 (501) — 6,502
Share issue costs   — (289) — — — (289)
Contingent consideration  14 — — — 999 — 999
Capital restructuring   — (13,165) (7,430) — 20,595 —
Retained profit for the year   — — — — 1,542 1,542
at 29 February 2008   1,660 — 459 3,108 14,157 19,384 28  TangenT communica Tions plc  annual report and accounts 2008
CONSOLIDATED bALANCE SHEET
AT 29 FEbRUARy 2008 
        2008 2007 
       Notes £000 £000
assets
non‑current assets
Intangible assets – goodwill      12 14,961 8,487
Property, plant and equipment      13 1,638 675
          16,599 9,162
current assets
Inventories      15 95 87
Trade and other receivables      16 4,324 2,268
Cash and cash equivalents       2,664 1,334
          7,083 3,689
Total assets       23,682 12,851
liabilities
current liabilities
borrowings      17 (90) (70)
Trade and other payables      18 (3,391) (1,721)
Current tax liabilities       (296) (117)
Provisions      19 (167) (167)
          (3,944) (2,075)
non‑current liabilities
borrowings      17 (149) (215)
Provisions      19 (166) (333)
Deferred tax      20 (39) —
          (354) (548)
Total liabilities       (4,298) (2,623)
net assets       19,384 10,228
equity
Share capital      22 1,660 1,118
Share premium account       — 7,860
Merger reserve       459 7,022
Other reserves      24 3,108 2,208
Retained earnings/(losses)       14,157 (7,980)
Total equity – attributable to equity shareholders of the company      19,384 10,228
These financial statements were approved by the board of directors on 14 May 2008 and were signed on its behalf by:
nicholas green graeme Harris
Director Director TangenT communica Tions plc  annual report and accounts 2008  29
CONSOLIDATED CASH FLOW STATEMENT
FOR THE yEAR ENDED 29 FEbRUARy 2008
        2008 2007 
       Notes £000 £000
cash from operations
Cash generated from operations      25 2,552 1,177
Interest paid       (29) (19)
Tax paid       (591) (27)
Net cash inflow from operating activities       1,932 1,131
investing activities
Acquisition of subsidiary, net of cash acquired      27 (5,479) (483)
Payment of contingent consideration       (167) —
Purchase of property, plant and equipment      13 (635) (498)
Sale of property, plant and equipment       27 61
Interest received       87 27
net cash used in investing activities       (6,167) (893)
Financing activities
Proceeds from issue of shares, net of costs       5,771 —
Repayment of borrowings       (206) (144)
New borrowings raised       — 308
Proceeds from exercise of share options       — 10
Net cash inflow from financing activities       5,565 174
increase in cash and cash equivalents       1,330 412
Cash and cash equivalents at beginning of year       1,334 922
cash and cash equivalents at end of year      26 2,664 1,334 30  TangenT communica Tions plc  annual report and accounts 2008
COMPANy STATEMENT OF CHANGES IN EQUITy
FOR THE yEAR ENDED 29 FEbRUARy 2008
        Retained  
    Share Share Merger Other  earnings/ Total 
    capital premium reserve reserves (losses) equity 
   Note £000 £000 £000 £000 £000 £000
At 1 March 2006   951 7,860 5,189 158 (7,772) 6,386
Share-based payment charge   — — — 388 — 388
Issue of shares   167 — 1,833 — — 2,000
Contingent consideration   — — — 500 — 500
Release of funds on share distribution   — — — 1 9 10
Retained loss for the year   — — — — (817) (817)
At 28 February 2007   1,118 7,860 7,022 1,047 (8,580) 8,467
Share-based payment charge   — — — 402 — 402
Issue of shares   542 5,594 867 (501) — 6,502
Share issue costs   — (289) — — — (289)
Contingent consideration  14 — — — 999 — 999
Capital restructuring   — (13,165) (7,430) — 20,595 —
Retained loss for the year   — — — — (1,146) (1,146)
at 29 February 2008   1,660 — 459 1,947 10,869 14,935 TangenT communica Tions plc  annual report and accounts 2008  31
COMPANy bALANCE SHEET
AT 29 FEbRUARy 2008
        2008 2007 
       Notes £000 £000
assets
non‑current assets
Investments in subsidiaries      14 17,095 10,055
         17,095 10,055
current assets
Trade and other receivables      16 31 18
Cash and cash equivalents       85 96
          116 114
Total assets       17,211 10,169
liabilities
current liabilities
Trade and other payables      18 (1,943) (1,202)
Provisions      19 (167) (167)
          (2,110) (1,369)
non‑current liabilities
Provisions      19 (166) (333)
          (166) (333)
Total liabilities       (2,276) (1,702)
net assets       14,935 8,467
equity
Share capital      22 1,660 1,118
Share premium account       — 7,860
Merger reserve       459 7,022
Other reserves      24 1,947 1,047 
Retained earnings/(losses)        10,869 (8,580)
Total equity – attributable to equity shareholders of the company      14,935 8,467
These financial statements were approved by the board of directors on 14 May 2008 and were signed on its behalf by:
nicholas green graeme Harris 
Director Director 32  TangenT communica Tions plc  annual report and accounts 2008
COMPANy CASH FLOW STATEMENT
FOR THE yEAR ENDED 29 FEbRUARy 2008
        2008 2007 
       Note £000 £000
cash from operations
Cash generated from operations      25 (21) 594
Interest paid       — —
Tax paid       — —
Net cash inflow from operating activities       (21) 594
investing activities
Acquisition of subsidiary       (5,599) (635)
Payment of contingent consideration       (167) —
Interest received       5 —
net cash used in investing activities       (5,761) (635)
Financing activities
Proceeds from issue of shares, net of costs       5,771 —
Repayment of borrowings       — (25)
Proceeds from exercise of share options       — 9
Net cash inflow from financing activities       5,771 (16)
Decrease in cash and cash equivalents       (11) (57)
Cash and cash equivalents at beginning of year       96 153
cash and cash equivalents at end of year       85 96 TangenT communica Tions plc  annual report and accounts 2008  33
NOTES TO THE FINANCIAL STATEMENTS
FOR THE yEAR ENDED 29 FEbRUARy 2008
1. introduction
In the year ended 28 February 2007, Tangent Communications plc (“the company”) and its subsidiaries (together “Tangent”) prepared its consolidated 
financial statements under UK generally accepted accounting principles (“UK GAAP”). With effect from 1 March 2007, the company is required to 
prepare its consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”). Tangent has therefore prepared 
both its consolidated financial statements and its parent company financial statements for the year ended 29 February 2008 in compliance with IFRS as 
adopted by the European Union and those parts of the Companies Act 1985 applicable to companies reporting under IFRS. Tangent has presented one 
year of comparative IFRS information for the year ended 28 February 2007, and consequently the date of transition is 1 March 2006 (“transition date”), 
being the first day of the comparative year. 
The comparative figures for the year ended 28 February 2007 prepared under IFRS are not Tangent’s statutory accounts for that financial year. Those 
accounts, which were prepared under UK GAAP , have been reported on by Tangent’s auditors and delivered to the registrar of companies. The report 
of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without 
qualifying their report, and (iii) did not contain a statement under section 237(2) or (3) of the Companies Act 1985.
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been 
consistently applied to all the years presented.
2.1 basis of preparation
These consolidated financial statements of the company and its subsidiaries are for the year ended 29 February 2008. 
UK GAAP differs in some areas from IFRS. In preparing these consolidated financial statements, the directors have amended certain accounting and valuation 
methods applied in the UK GAAP financial statements to comply with IFRS. The comparative figures have been restated to reflect these adjustments.
Reconciliations and descriptions of the effect of the transition from previously published UK GAAP to IFRS on Tangent’s equity, net assets, net income and 
cash flows are provided in note 31.
The consolidated financial statements have been prepared under the historical cost convention and on a going concern basis.
2.2 Consolidation
Subsidiaries are all entities which Tangent has the power to govern the financial and operating policies generally accompanying a shareholding of more 
than one half of the voting rights. Subsidiaries are fully consolidated from the date on which control is transferred to Tangent. They are de-consolidated 
from the date that control ceases. All active subsidiaries were held by a direct 100% shareholding by the parent company at the balance sheet date.
The purchase method of accounting is used to account for the acquisition of subsidiaries. The cost of an acquisition is measured as the fair value of the 
assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. 
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value at the date 
of acquisition. The excess of the cost of acquisition over the fair value of Tangent’s share of the identifiable net assets acquired is recorded as goodwill.
Intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated. Accounting policies of subsidiaries 
have been changed, where necessary, to ensure consistency with the policies adopted by Tangent.
2.3 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of Tangent’s activities. 
Revenue is shown net of value-added tax, returns, rebates and discounts and after eliminating intra-group sales.
Tangent recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to Tangent 
and specific delivery criteria have been met. 
2.4 Segmental reporting
A business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns that are different 
from those of other business segments. A geographical segment is engaged in providing products or services within a particular economic environment 
that are subject to risks and returns that are different from those of segments operating in other economic environments. In the directors’ opinion 
Tangent operates in one business segment which cannot be subdivided in a meaningful way.
2.5 Foreign currency translation
(a) Functional and presentational currency
Items included in the financial statements of each of Tangent’s entities are measured in sterling, which is the company’s and the group’s functional 
and presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into sterling using the exchange rates prevailing at the dates of the transactions. Exchange differences arising from 
the translation at the year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement. 34  TangenT communica Tions plc  annual report and accounts 2008
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE yEAR ENDED 29 FEbRUARy 2008
2. Summary of significant accounting policies continued
2.6 Employee benefits
(a) pension obligations
Tangent has defined contribution plans under which Tangent pays fixed contributions into a separate entity. Tangent has no legal or constructive 
obligations to pay further contributions relating to employee service in the current and prior years. The contributions are recognised as an employee 
benefit expense when they are due.
(b) share‑based compensation
Tangent operates a number of equity-settled, share-based compensation plans. The fair value of the employee services received in exchange for the 
grant of the options is recognised as an expense. The total amount to be expensed over the period until the option can be exercised is determined by 
reference to the fair value of the options granted, excluding the impact of any non-market vesting conditions (e.g. profitability and revenue growth 
targets). Non-market vesting conditions are included in the assumptions about the number of options that are expected to vest. At each balance sheet 
date, Tangent revises its estimates of the number of options that are expected to vest. It recognises the impact of the revision to original estimates, if any, 
in the income statement, with a corresponding adjustment to equity.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options 
are exercised. 
2.7 Intangible assets – goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of Tangent’s share of the net identifiable assets of the acquired subsidiary 
at the date of acquisition. Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill is tested annually for impairment and carried 
at cost less accumulated impairment losses. Any impairment on goodwill is recognised immediately in the income statement and is not subsequently 
reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups 
of cash-generating units that are expected to benefit from the business combination in which the goodwill arose. Tangent currently allocates goodwill 
to a single business segment.
2.8 Investments in subsidiaries
The parent company’s investments in subsidiary undertakings are included in the company balance sheet at cost, less provision for any impairments in value.
2.9 Property, plant and equipment
Property plant and equipment are stated at historic cost less subsequent depreciation and impairment. Historic cost includes expenditure that is directly 
attributable to the acquisition of the items.
Depreciation on assets is calculated using the straight line method to allocate their cost less their residual values over their estimated useful lives, as follows:
 buildings   Over the term of the lease 
 Plant and equipment two to ten years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
Subsequent costs are included in an asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future 
economic benefits associated with the item will flow to Tangent and the cost of the item can be measured reliably. The carrying amount of a replaced 
part is derecognised. All other repairs and maintenance are charged to the income statement during the financial year in which they are incurred.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the income statement. 
2.10 Inventories
Inventories are stated at the lower of cost and net realisable value. 
2.11 Trade receivables
Trade receivables are recognised initially at fair value. A provision for impairment of trade receivables is established when there is objective evidence that 
the group will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference 
between the asset’s carrying amount and the present value of estimated future cash flows. The carrying amount of the asset is reduced through the 
use of an allowance account, and the amount of the loss is recognised in the income statement within operating expenses. When a trade receivable is 
uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited 
against operating expenses in the income statement. 
2.12 Cash and cash equivalents
Cash and cash equivalents on the balance sheet include cash in hand, short term deposits held with banks. bank overdrafts are shown within borrowings 
in current liabilities on the balance sheet. For the purposes of the cash flow statement, cash and cash equivalents also include the bank overdrafts. TangenT communica Tions plc  annual report and accounts 2008  35
2. Summary of significant accounting policies continued
2.13 Leases
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments under 
operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight line basis over the period of the lease.
Tangent leases certain plant and equipment where Tangent has substantially all the risks and rewards of ownership. These leases are classified as finance 
leases. Finance leases are capitalised at the lease commencement at the lower of the fair value of the leased property and the present value of the 
minimum lease payments.
Each finance lease payment is allocated between the liability and finance charges so as to achieve the explicit or implicit interest rate on the finance 
balance outstanding. The corresponding rental obligations, net of finance charges, are included in other short term and other long term borrowings. 
The interest element of the finance cost is charged to the income statement over the lease period. The property plant and equipment acquired under 
finance leases is depreciated over the shorter of the useful life of the asset and the lease term.
2.14 Provisions
Provisions are recognised when Tangent has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources 
will be required to settle the obligation and the amount has been reliably estimated. Provisions are not recognised for future operating losses.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current 
market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised 
as interest expense.
2.15 Deferred tax
Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their 
carrying amounts in the consolidated financial statements. Deferred tax is not accounted for if it arises from initial recognition of an asset or liability in 
a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss. Deferred tax 
is determined using tax rates that are expected to apply when the related deferred tax asset is realised or when the deferred tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences 
can be utilised.
2.16 Equity instruments
Ordinary shares are classified as equity. Costs directly attributable to the issue of new shares are shown as equity as a deduction from the proceeds.
2.17 New standards and interpretations not applied
At the date of authorisation of these financial statements, IFRS 8: Operating Segments was in issue but not yet effective, so has not been applied. 
The directors anticipate that the adoption of the IFRS Standards and Interpretations that are currently in issue but not yet effective will have no material 
impact on the financial statements of the group except for possible additional disclosures on Operating Segments when IFRS 8 comes into effect for the 
year commencing on 1 March 2009.
2.18 Accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that 
are believed to be reasonable under the circumstances.
Tangent makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, rarely equal the related actual 
results. The estimates and assumptions that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within 
the next financial year are outlined below:
(a) Intangible fixed assets
Tangent tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in note 2.7. The recoverable 
amounts from cash-generating units are determined based on value-in-use calculations. These calculations require the use of estimates. In arriving at the 
fair value of goodwill, Tangent estimates the future consideration payable for acquisitions where the final consideration is contingent upon future events 
or performance. Estimated future consideration is reviewed and accrued at each balance sheet date. If recoverable amounts of cash-generating units are 
below the estimated levels or if the future consideration payable on acquisitions is higher than estimated an impairment loss may be triggered.
(b) Deferred tax
Tangent estimates future profitability in arriving at the fair value of the deferred tax assets and liabilities. If the final tax outcome is different to the 
estimated deferred tax amount the resulting changes will be reflected in the income statement, unless the tax relates to an item charged to equity 
in which case the changes in tax estimates will also be reflected in equity. 36  TangenT communica Tions plc  annual report and accounts 2008
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE yEAR ENDED 29 FEbRUARy 2008
3. continuing and acquired operations
      2008 2008 2008 2007 
      Continuing Acquired Total Total 
      £000 £000 £000 £000
Revenue     9,959 7,402 17,361 8,605
Cost of sales     (5,058) (4,219) (9,277) (4,515)
Gross profit     4,901 3,183 8,084 4,090
Operating expenses     (3,594) (2,052) (5,646) (3,020)
Underlying operating profit      1,307 1,131 2,438 1,070
Share-based payment charge     (402) — (402) (388)
Operating profit     905 1,131 2,036 682
On 27 March 2007 Tangent acquired Ravensworth Digital Services Limited and further details are set out in note 27.
4. operating costs
The operating costs, which are deducted from revenue in arriving at operating profit, are analysed as follows:
        2008 2007 
       Note £000 £000
Employee benefits      6 6,159 3,680
Direct purchases for goods and services provided       6,385 2,859
Depreciation       488 342
Other expenses       2,293 1,042
         15,325 7,923
5. auditors’ remuneration
        2008 2007 
        £000 £000
Audit       50 35
Tax services       12 5
Other services       57 24
         119 64
The other services were £28,000 (2007: £16,000) for due diligence work on the acquisition of subsidiaries, £19,000 (2007: £nil) for IFRS advisory work 
and £10,000 (2007: £8,000) for reviewing the group interim report.
6. employee information
        2008 2007 
       Note £000 £000
Wages and salaries       5,230 2,940
Social security costs       481 315
Pension contributions       46 37
Share-based payment charge      23 402 388
        6,159 3,680
The average number of employees, including directors, by location was:
        2008 2007 
        Number Number
London       88 74
Newcastle       66 —
Cheltenham       20 20
        174 94
Details of directors’ emoluments, including details of share option schemes are given in the report of the remuneration committee on pages 23 and 24. 
These disclosures form part of the audited financial statements of the group. TangenT communica Tions plc  annual report and accounts 2008  37
7. Finance income 
        2008 2007 
        £000 £000
Interest receivable on deposits       87 27
Interest payable on finance leases       (29) (19)
        58 8
8. Taxation
        2008 2007 
current year       £000 £000
UK corporation tax       552 86
UK corporation tax is calculated at 30% of the estimated assessable profit for the period.
        2008 2007 
Reconciliation of the tax charge in the income statement       £000 £000
Profit before tax       2,094 690
Tax at the weighted average tax rate of 30% (2007: 30%)       628 207
Tax effects of:
Deferred tax assets not recognised       (203) (252)
Expenditure not deductible for tax purposes       135 131
Other adjustments       (8) —
Tax charge for the year       552 86
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which losses can be 
utilised. The carrying value of deferred tax assets recognised at 29 February 2008 is £nil (2007: £nil). 
The group has tax losses available to carry forward against future profits amounting to £700,000 (2007: £1,158,000) and the unrecognised deferred tax 
asset at 29 February 2008 is £210,000 (2007: £347,000).
9. earnings per share
The calculation of the basic and diluted earnings per share is based on the following:
        2008 2007 
        £000 £000
Profit attributable to shareholders       1,542 604
Share-based payments       402 388
Underlying profit attributable to shareholders       1,944 992
        Number Number 
Weighted average number of shares:       000 000
For basic earnings per share       156,996 104,278
Adjustment for options outstanding       9,417 8,972
Adjustment for contingent shares       8,325 2,665
For diluted earnings per share       174,738 115,915
        Pence per Pence per 
Earnings per share:       share share
basic       0.98 0.58
Underlying basic       1.24 0.95
Diluted       0.88 0.52
Underlying diluted       1.11 0.86
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive 
potential ordinary shares. Tangent has two categories of dilutive potential ordinary shares: share options and shares contingently issuable as consideration 
for an acquisition.
A calculation is performed for the share options to determine the number of shares that could have been acquired at fair value based on the monetary 
value of the subscription rights attached to the outstanding share options. The number of shares from this calculation is compared with the number of 
shares that would have been issued assuming the exercise of the options and the difference is deemed to be the number of dilutive shares attributable 
to share options.
The estimated number of shares that will be issued in the future as purchase consideration for current subsidiaries is deemed to be the number of dilutive shares 
issuable as consideration for acquisitions. 38  TangenT communica Tions plc  annual report and accounts 2008
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE yEAR ENDED 29 FEbRUARy 2008
10. Dividends
        2008 2007 
        £000 £000
Proposed final dividend for the year of 0.2p per share       337 —
The proposed final dividend is subject to approval by shareholders at the 2008 annual general meeting and has not been included as a liability in these 
financial statements. If approved it will be the first dividend payable by the company.
The Tangent employee share ownership trust, which holds a total of 1,428,340 ordinary shares, has agreed to waive all dividends. The directors 
estimate that a further 4,166,666 new shares will be issued before the record date for the dividend and so the dividend will be payable on approximately 
168.7m ordinary shares.
11. income statement for the parent company
In accordance with section 230 of the Companies Act 1985, the parent company has not published an income statement. The loss dealt with 
in the financial statements of the parent company of £1,146,000 (2007: £817,000) has been included in the consolidated income statement.
12. intangible assets – goodwill
        2008 2007 
Group       £000 £000
cost and net book value
At 1 March       8,487 5,051
Additions        6,474 3,436
At 29 February       14,961 8,487
Additions to goodwill in the year ended 28 February 2007 arose on the acquisition of C360 UK Limited in July 2006. Additions to goodwill in the 
year ended 29 February 2008 comprise £5,474,000 on the acquisition of Ravensworth Digital Services Limited (note 27) and an additional £999,000 
of contingent equity consideration that the directors estimate will be payable on the acquisition of C360 UK Limited. 
No further consideration is payable for the acquisition of Ravensworth Digital Services Limited. The financial statements provide for the payment of the 
maximum contingent consideration under the agreement to purchase C360 UK Limited.
The group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired. The recoverable amount 
for impairment testing is determined based on value-in-use calculations, using cash flow projections based on budgets and forecasts approved by the 
board. Cash flows beyond five years are extrapolated using a growth rate of 3%. A discount rate of 10% has been applied to the projected cash flows. 
The directors have concluded that the value of goodwill has not been impaired.
13. property, plant and equipment
       Short    
       leasehold    
       land and Plant and  
       buildings equipment Total  
Group      £000 £000 £000
cost
At 1 March 2006      41 1,757 1,798
Additions      18 480 498
Acquired with subsidiary      — 8 8
Disposals      — (284) (284)
At 28 February 2007       59 1,961 2,020
Additions      10 625 635
Acquired with subsidiary       389 978 1,367
Disposals      — (73) (73)
at 29 February 2008       458 3,491 3,949
Depreciation
At 1 March 2006      21 1,261 1,282
Charge for the year      11 331 342
Disposals      — (279) (279)
At 28 February 2007      32 1,313 1,345
Charge for the year      37 450 487
Acquired with subsidiary      40 503 543
Disposals      — (64) (64)
at 29 February 2008       109 2,202 2,311
net book value
at 29 February 2008      349 1,289 1,638
At 28 February 2007       27 648 675
Included within net book value of plant and equipment is £272,000 (2007: £298,000) in respect of assets held under finance leases. Included within the 
depreciation charge for the year is £107,000 (2007: £68,000) in respect of assets held under finance leases. TangenT communica Tions plc  annual report and accounts 2008  39
14. investments in subsidiaries
        2008 2007 
Company       £000 £000
cost
At 1 March       10,319 6,683
Additions       7,040 3,636
At 29 February       17,359 10,319
provision for impairment
At 1 March and 29 February       264 264
net book value
At 29 February       17,095 10,055
Additions to investments in the year ended 28 February 2007 arose on the acquisition of C360 UK Limited in July 2006. Additions to investments in the 
year ended 29 February 2008 comprise £6,041,000 on the acquisition of Ravensworth Digital Services Limited (note 27) and an additional £999,000 
of contingent equity consideration that the directors estimate will be payable on the acquisition of C360 UK Limited. 
In the opinion of the directors, the aggregate value of the investment in subsidiary undertakings is not less than the amount at which it is stated in the 
balance sheet.
Subsidiary undertakings
The company’s trading subsidiaries are as follows:
         Interest in 
        Principal  ordinary  
Name      activity  share capital
Ravensworth Digital Services Ltd      Marketing services  100%
Tangent Labs Ltd (formerly C360 UK Ltd)      Marketing services  100%
Tangent Marketing Services Ltd      Marketing services  100%
The subsidiary companies are all incorporated in England and their results have been consolidated in these financial statements.
15. inventories
  Group  Company
      2008 2007 2008 2007  
      £000 £000 £000 £000
Consumables     89 72 — —
Work in progress     6 15 — —
      95 87 — —
16. Trade and other receivables
  Group  Company
      2008 2007 2008 2007  
      £000 £000 £000 £000
Trade receivables     3,935 2,063 — —
Other receivables     6 13 31 18
Prepayments and accrued income     383 192 — —
      4,324 2,268 31 18
17. Borrowings
Group borrowings comprise finance leases with repayments due as follows:
    Present value 
  Minimum lease  of minimum lease 
  payments   payments 
      2008 2007 2008 2007  
      £000 £000 £000 £000
Within one year      101 86 90 70
After one but not more than five years     159 235 149 215
      260 321
Less finance charges allocated to future years     (21) (36)
Present value of finance lease borrowings     239 285 239 285 40  TangenT communica Tions plc  annual report and accounts 2008
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE yEAR ENDED 29 FEbRUARy 2008
18. Trade and other payables
  Group  Company
      2008 2007 2008 2007  
      £000 £000 £000 £000
Trade payables     1,548 949 — 8
Other taxes and social security     346 377 — —
Other creditors     233 59 — 2
Accruals     1,264 336 133 —
Owed to group companies     — — 1,810 1,192
      3,391 1,721 1,943 1,202
19. provisions
  Group  Company
      2008 2007 2008 2007  
      £000 £000 £000 £000
At 1 March     500 32 500 25
Contingent acquisition consideration     — 500 — 500
Settled in the year     (167) (21) (167) (14)
Released in the year     — (11) — (11)
at 29 February     333 500 333 500
  Group  Company
      2008 2007 2008 2007  
analysed as     £000 £000 £000 £000
Current liabilities     167 167 167 167
Non-current liabilities     166 333 166 333
      333 500 333 500
Provisions are for the estimated cash consideration that the directors expect to be paid for the acquisition of C360 UK Limited. The amount provided 
is the maximum amount payable under the purchase agreement.
20. Deferred tax
  Group  Company
      2008 2007 2008 2007  
      £000 £000 £000 £000
At 1 March     — — — —
On acquisition     39 — — —
at 29 February     39 — — —
The deferred tax liability is from accelerated capital allowances in Ravensworth Digital Services Limited. TangenT communica Tions plc  annual report and accounts 2008  41
21. Financial instruments 
The group’s financial instruments comprise cash, liquid resources and various items, such as debtors and creditors that arise directly from its operations. 
The main risk arising from the group’s financial instruments is interest rate risk. The group monitors its interest rate risk primarily through monthly cash 
flow forecasting. 
Short term debtors and creditors
Short term debtors and creditors have been excluded from the financial instruments disclosures.
Interest rate risk
The group finances its operations through funds raised from shareholders, retained earnings and finance lease borrowings. Throughout the year the 
group’s exposure to interest rate fluctuations was on its cash deposits and finance leases.
Foreign currency risk
The group policy is to match foreign currency payments and receipts where possible and to ensure by hedging if necessary to avoid a material foreign 
currency risk.
Credit risk
The group’s policy is that customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are 
monitored on an ongoing basis with the result that the group’s exposure to bad debts has not been significant. Credit risk arising from other financial assets, 
which comprise only cash deposits, the group’s exposure has been minimised by only placing deposits with banks with high credit ratings.
Liquidity risk
The group operates a cash-generative business, holds net funds, has an undrawn overdraft facility of £1m. The risk of a shortage of funds is therefore low.
Capital management
The group ensures that the capital structure maintains a strong credit rating, a low reliance on debt and resources that enable the group to make small 
scale acquisitions quickly if desired.
Interest rate risk profile of financial assets and liabilities
The interest rate profile of the group’s financial assets and liabilities was:
       Floating rate  Floating rate 
      Fixed rate financial Fixed rate financial  
      financial assets/ financial assets/ 
      liabilities (liabilities) liabilities (liabilities) 
      2008 2008 2007 2007  
      £000 £000 £000 £000
Cash balances     — 2,664 — 1,334
Finance leases     (23) (216) — (285)
      (23) 2,448 — 1,049
Interest on cash is based on short term floating rates linked to money market rates. The average rate of interest on floating rate liabilities is 0.88% above 
bank base rate. The average rate of interest on fixed rate liabilities is 4.58%.
Fair value of financial instruments
The group’s financial instruments, which comprise cash and short term deposits and variable rate finance leases, are carried at amortised cost, which 
is also considered to be equivalent to their fair value.
borrowing facilities
On 6 March 2007 Tangent agreed a £1m overdraft facility at a rate of 1.25% over base rate secured by cross guarantees and debentures. The overdraft 
facility has never been drawn but having the facility improves the financial flexibility of the group. The finance lease liabilities as set out in note 17 are all 
secured on the assets against which the borrowings were provided. 42  TangenT communica Tions plc  annual report and accounts 2008
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE yEAR ENDED 29 FEbRUARy 2008
22. share capital
  Number of shares  Nominal value
      2008 2007 2008 2007  
      £000 £000 £000 £000
authorised
At 1 March      142,670 142,670 1,427 1,427
Increase on 23 March 2007     82,330 — 823 —
Increase on 17 January 2008     743,016 — 7,430 —
Decrease on 17 January 2008     (743,016) — (7,430) —
At 29 February     225,000 142,670 2,250 1,427
allotted and fully paid
  Number of   
  ordinary 1p shares  Nominal value
      2008 2007 2008 2007  
a)      £000 £000 £000 £000
At 1 March      111,780 95,113 1,118 951
Issued in the year     54,187 16,667 542 167
At 29 February     165,967 111,780 1,660 1,118
  Number of   
  deferred 1p shares  Nominal value
      2008 2007 2008 2007  
b)      £000 £000 £000 £000
At 1 March      — — — —
Issued on 17 January 2008      743,016 — 7,430 —
Cancelled on 17 January 2008     (743,016) — (7,430) —
At 29 February     — — — —
On 26 and 27 March 2007 a total of 50,011,828 ordinary shares of 1p each were allotted at 13p per share, of which 46,615,385 shares were placed for 
cash and 3,396,443 were allotted as part consideration for the acquisition of Ravensworth Digital Services Limited.
On 17 January 2008 Tangent undertook a capital restructuring to enable it to pay dividends. At a general meeting held on that date the authorised 
capital was increased, deferred shares were issued and then immediately cancelled and the authorised capital was reduced so it was the same as at the 
beginning of the meeting. The share capital of the company was thus changed for less than an hour before reverting to the same as it had been at the 
beginning of the meeting. Details of the changes are set out in the directors’ report.
On 19 February 2008 4,175,000 ordinary shares of 1p each were allotted at 12p per share as part of the contingent consideration for the acquisition 
of C360 UK Limited. TangenT communica Tions plc  annual report and accounts 2008  43
23. share options
The movements in share options and corresponding weighted average exercise prices (WAEP) are summarised below:
  2008  2007
      Number WAEP Number WAEP 
      000 Pence 000 Pence
At 1 March      13,525 4.44 13,810 4.34
Granted     1,540 9.63 265 11.75
Exercised for cash     — — (200) 4.67
Lapsed     (194) (11.98) (350) (4.89)
At 29 February     14,871 5.19 13,525 4.44
For the share options outstanding at 29 February 2008 exercise prices ranged between 1p and 13.25p per share and the weighted average remaining 
contractual life was 7.5 years. 
For the options exercised in the prior year the weighted average share price at exercise was 11p.
Fair values
The fair value of share options granted in the year was calculated using a black-Scholes option pricing model with the following inputs: 
Weighted average share price  13.27p 
Weighted average exercise price 9.63p 
Expected volatility   20% 
Expected life   5–10 years 
Risk free rate   5.3% 
Expected dividend yield  1.5%
The expected volatility, measured as the standard deviation of expected share price return, is based on a statistical analysis of the T angent share price since July 2005. 
The total share option charge for the year was £402,000 (2007: £388,000) in accordance with the requirements of IFRS 2 on share-based payments. 
The charge relates principally to the share options granted to directors in September 2005, as disclosed in the remuneration report on pages 23 to 24.
24. other reserves
  Group  Company
      2008 2007 2008 2007 
      £000 £000 £000 £000
ESOP reserve     (3) (3) (3) (3)
Share-based payments reserve     951 550 951 550
Capital reserve     999 500 999 500
Restructure reserve     1,161 1,161 — —
      3,108 2,208 1,947 1,047
The ESOP reserve represents the cost of Tangent shares held by the employee share ownership trust. At 29 February 2008 the employee share ownership 
trust held a total of 1,428,340 (2007: 1,448,340) ordinary shares, with a market value of £168,000 (2007: £192,000). 
The share-based payment reserve represents the value of share-based payments recognised in the income statement to date less any transfers to retained 
earnings that arise from the shares issue on the exercise of options.
The capital reserve represents the future share capital and the associated merger reserve that is expected to result from the proposed issue of 8,325,000 
ordinary shares at 12p each as contingent share consideration (note 14).
The restructure reserve represents the consolidated capital reserve which arose when the group restructured and floated on AIM in May 2000. 44  TangenT communica Tions plc  annual report and accounts 2008
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE yEAR ENDED 29 FEbRUARy 2008
25. cash generated from operations
        2008 2007 
a) Group       £000 £000
Profit before tax for the year        2,094 690
Depreciation       487 342
Profit on sale of plant and equipment       (18) (56)
Net interest income       (58) (8)
Share-based payment charge       402 388
Decrease in inventories       24 11
Increase in trade and other receivables       (243) (464)
(Decrease)/increase in trade and other payables       (136) 274
Cash generated from operations       2,552 1,177
        2008 2007 
b) Company       £000 £000
Loss before tax for the year        (1,146) (817)
Share-based payment charge       402 388
Increase in trade and other receivables       (13) —
Increase in trade and other payables       736 1,023
Cash generated from operations       (21) 594
26. analysis of net funds
         At 
      At 1 March  Cash 29 February 
      2007  Acquisition Flows   2008  
      £000  £000  £000   £000 
Cash     1,334 120 1,210 2,664
bank borrowings     — (52) 52 —
Finance leases     (285) (108) 154 (239)
Net funds     1,049 (40) 1,416 2,425
27. acquisition
On 27 March 2007 Tangent acquired the entire share capital of Ravensworth Digital Services Limited (Ravensworth), a digital marketing business based 
in Newcastle, principally serving the property sector. The assets and liabilities arising from the acquisition are as follows:
       book Fair value Fair 
       values adjustments values 
       £000  £000   £000 
Property, plant and equipment      963 (139) 824
Inventories      32 — 32
Trade and other receivables      1,867 (56) 1,811
Cash and cash equivalents      120 — 120
borrowings      (159) — (159)
Provisions for liabilities and charges      (39) — (39)
Trade and other payables      (1,805) — (1,805)
Current tax liabilities      (234) 17 (217)
Net assets      745 (178) 567
Goodwill        5,474
Total consideration        6,041
Total consideration was paid as follows:
Cash        5,408
Issue of shares (3,396,443 shares at 13p)        442
Acquisition costs        191
         6,041
Net cash outflow arising from the acquisition was as follows:
Purchase consideration settled in cash        5,408
Acquisition costs        191
Cash paid for acquisition        5,599
Cash and cash equivalents in subsidiary acquired        (120)
Cash paid, net of cash and cash equivalents in subsidiary acquired       5,479
No deferred or contingent consideration is payable as part of the acquisition of Ravensworth. The fair value of the equity consideration was determined 
by reference to the price of the placings of Tangent shares on 26 and 27 March 2007. TangenT communica Tions plc  annual report and accounts 2008  45
27. acquisition continued
From 1 March 2007 until its acquisition on 27 March 2007, Ravensworth operated under a higher cost structure which included costs for directors who 
departed on acquisition. If the results of Ravensworth had been consolidated from the beginning of Tangent’s financial year, instead of from the date of 
acquisition, group revenue would have increased by £678,000 and group profit before tax would have increased by £6,000.
28. operating lease commitments
        2008 2007 
        £000 £000
Minimum lease payments under operating leases recognised as an expense in the year     1,927 171
Future minimum lease payments under non-cancellable operating leases are as follows:
        2008 2007 
        £000 £000
Within one year       2,164 23
After one but not more than five years       5,230 139
After five years       1,805 —
        9,199 162
The increase in operating lease commitments arose from the acquisition of Ravensworth Digital Services Limited which had two significant operating 
lease commitments. These related to the supply and maintenance of print engines and the lease of its current premises.
29. Related party transactions
Compensation of key management personnel
Key management personnel of the group are defined as those persons having authority and responsibility for the planning, directing and controlling the 
activities of the group, directly or indirectly. Key management of the group are therefore considered to be the directors of Tangent Communications plc. 
There were no transactions with the key management, other than their emoluments, which are set out in the report of the remuneration committee on 
pages 23 to 24.
30. post balance sheet events
On 14 May 2008 the directors recommended payment of a dividend which is subject to approval at the 2008 annual general meeting. Details are set out 
in note 10.
31. Transition from uK gaap to iFRs
Tangent’s first financial statements which have been prepared on an IFRS basis are these for the year ended 29 February 2008, which include comparative 
IFRS financial statements for the year ended 28 February 2007.
Set out in this note is a reconciliation between UK GAAP and IFRS for the following:
 balance sheet at the date of transition of 1 March 2006;
 balance sheet at the date of the prior year financial statements of 28 February 2007; and
 income statement for the prior year ended 28 February 2007.
Cash flow statements have not been prepared as there are no adjustments.
There are no changes to the parent company’s financial statements resulting from the transition from UK GAAP to IFRS at the transition date of 1 March 2006 
and for the year ended 28 February 2007, therefore, no financial statements are shown below for the company.
The changes on the transition to IFRS arise from the following principal factors:
(i) Presentation of financial statements
Presentation has been changed to be in compliance with IAS 1 “Presentation of Financial Statements” and terminology has also been changed to reflect 
headings used in IFRS. 
The cash flow statements are presented in accordance with IAS 7 “cash flow statements”. Cash flows have been grouped under three main headings, 
cash flows from operating, investing and financing activities; these headings differ from those presented under UK GAAP .
(ii) IFRS 3 “business Combinations”
Under IFRS, goodwill arising on acquisition is capitalised and subject to an annual impairment review. Under UK GAAP , goodwill was amortised over its 
estimated useful life. Consequently under IFRS, this amortisation charge has been reversed from the consolidated income statement and added back to 
the net book value of goodwill.
IFRS 1 “First-time Adoption of International Financial Reporting Standards” permits companies adopting IFRS for the first time to take certain exemptions 
from the full requirements of IFRS in the transition year. The financial statements have been prepared on the basis of the following material exemptions:
net book value as deemed cost
IFRS 1 does not require a company to recreate cost information for property, plant and equipment and goodwill. The group’s net book value of goodwill 
at 1 March 2006 is the deemed cost under IFRS going forward. This cost is therefore used as the basis for subsequent impairment tests for goodwill. 
accounting estimates
IFRS 1 prohibits the use of hindsight to correct estimates made under previous GAAP unless there is objective evidence of error. The group used the same 
estimates made under UK GAAP for the opening IFRS balance sheet at 1 March 2006.  46  TangenT communica Tions plc  annual report and accounts 2008
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE yEAR ENDED 29 FEbRUARy 2008
31. Transition from uK gaap to iFRs continued
Reconciliation of the group balance sheet at the transition date of 1 March 2006
        Effect of   
        transition  
       UK GAAP to IFRS IFRS 
       £000 £000 £000
assets 
non‑current assets
Intangible assets – goodwill      5,051 — 5,051
Property plant and equipment      516 — 516
         5,567 — 5,567
current assets
Inventories      98 — 98
Trade and other receivables      1,656 — 1,656
Cash and cash equivalents      922 — 922
         2,676 — 2,676
Total assets      8,243 — 8,243
liabilities
current liabilities
borrowings      (108) — (108)
Trade and other payables      (1,362) — (1,362)
Current tax liabilities      (2) — (2)
         (1,472) — (1,472)
non‑current liabilities
borrowings      (13) — (13)
Provisions      (32) — (32)
         (45) — (45)
Total liabilities      (1,517) — (1,517)
net assets      6,726 — 6,726
equity
Share capital      951 — 951
Share premium account      7,860 — 7,860
Merger reserve      5,189 — 5,189
Other reserves      1,319 — 1,319
Revenue reserve      (8,593) — (8,593)
Total equity and reserves      6,726 — 6,726 TangenT communica Tions plc  annual report and accounts 2008  47
31. Transition from uK gaap to iFRs continued
Reconciliation of the group balance sheet at the comparative date of 28 February 2007
        Effect of   
        transition  
       UK GAAP to IFRS IFRS 
       £000 £000 £000
assets 
non‑current assets
Intangible assets – goodwill      8,102 385 8,487
Property plant and equipment      675 — 675
         8,777 385 9,162
current assets
Inventories      87 — 87
Trade and other receivables      2,268 — 2,268
Cash and cash equivalents      1,334 — 1,334
        3,689 — 3,689
Total assets      12,466 385 12,851
liabilities
current liabilities
borrowings      (70) — (70)
Trade and other payables      (1,721) — (1,721)
Current tax liabilities      (117) — (117)
Provisions      (167) — (167)
         (2,075) — (2,075)
non‑current liabilities
borrowings      (215) — (215)
Provisions      (333) — (333)
         (548) — (548)
Total liabilities      (2,623) — (2,623)
net assets      9,843 385 10,228
equity
Share capital      1,118 — 1,118
Share premium account      7,860 — 7,860
Merger reserve      7,022 — 7,022
Other reserves      2,208 — 2,208
Revenue reserve      (8,365) 385 (7,980)
Total equity and reserves      9,843 385 10,228
Reconciliation of the group income statement for comparative year ended 28 February 2007
         Effect of   
         transition  
       UK GAAP to IFRS  IFRS 
       £000  £000  £000
Revenue      8,605 — 8,605
Cost of sales      (4,515) — (4,515)
Gross profit      4,090 — 4,090
Operating expenses      (3,020) — (3,020)
Underlying operating profit       1,070 — 1,070
Amortisation of goodwill      (385) 385 —
Share-based payments      (388) — (388)
Operating profit      297 385 682
Finance costs – net      8 — 8
Profit before tax      305 385 690
Tax       (86) — (86)
Profit for the year      219 385 604 48  TangenT communica Tions plc  annual report and accounts 2008
NOTICE OF ANNUAL GENERAL MEETING
TANGENT COMMUNICATIONS PLC
Notice is hereby given that the 2008 annual general meeting of the company will be held at the offices of Pinsent Masons LLP , CityPoint, One Ropemaker Street, 
London EC2y 9AH on Thursday 24 July 2008 at 10am for the following purposes:
ordinary business
1. To receive the accounts and the reports of the directors and the auditors for the financial year ended 29 February 2008.
2. To declare a final dividend for the financial year ended 29 February 2008 of 0.2p per ordinary share.
3. To re-elect Nicholas Green as a director who is retiring by rotation in accordance with the company’s articles of association. 
4.  To re-appoint Greg Jackson as a director who was appointed since the last annual general meeting and who is retiring in accordance with 
the company’s articles of association. 
5.  To re-appoint UHy Hacker y oung LLP as auditors of the company from the conclusion of this meeting until the conclusion of the next general 
meeting at which accounts are laid before the shareholders and to authorise the directors to fix the auditors’ remuneration. 
special business
To consider and, if thought fit, pass the following resolutions which will be proposed, as to resolution numbered 6, as an ordinary resolution and, 
as to resolutions numbered 7 and 8, as special resolutions:
6.  That, as an ordinary resolution, (in substitution for all subsisting authorities) the directors be and they are hereby generally and unconditionally 
authorised to exercise all powers of the company to allot relevant securities (within the meaning of section 80 of the Companies Act 1985) up to 
an aggregate nominal amount of £553,222 for the period expiring on 23 July 2013 (unless previously renewed, varied or revoked by the company 
in general meeting) but the company may, before such expiry, make an offer or agreement which would or might require relevant securities to be 
allotted after such expiry and the directors may allot relevant securities in pursuance of that offer or agreement as if the authority conferred by this 
resolution had not expired. 
7.  That, as a special resolution, subject to the passing of resolution 6, the directors be and they are hereby generally empowered pursuant to section 95 
of the Companies Act 1985 (the “Act”) to allot equity securities (within the meaning of section 94(2) to section 94 (3A) of the Act) for cash pursuant 
to the authority conferred by resolution 6 as if section 89(1) of the Act did not apply to the allotment. This power is limited to:
 (a)  the allotment of equity securities where such securities have been offered (whether by way of a rights issue, open offer or otherwise) to holders 
of ordinary shares in the capital of the company made in proportion (as nearly as may be) to their existing holdings of ordinary shares but 
subject to the directors having a right to make such exclusions or other arrangements in connection with the offering as they deem necessary 
or expedient: 
  (i) to deal with equity securities representing fractional entitlements; and
  (ii) to deal with legal or practical problems under the laws of any territory or the requirements of any regulatory body or stock exchange; and
 (b)  the allotment of equity securities for cash otherwise than pursuant to paragraph (a) up to an aggregate nominal amount of £82,983 
and will expire on 23 July 2013, but the company may, before such expiry, make an offer or agreement which would or might require equity 
securities to be allotted after such expiry and the directors may allot equity securities in pursuance of that offer or agreement as if the power 
conferred by this resolution had not expired. 
   This power applies in relation to a sale of shares which is an allotment of equity securities by virtue of section 94(3A) of the Act as if in the first 
paragraph of this resolution the words “pursuant to the authority conferred by resolution 6” were omitted.
8.  That, as a special resolution, with effect from 1 October 2008, or such later date as section 175 Companies Act 2006 shall be brought into force, articles 
17.7 and 17.8 of the articles of association of the company be deleted in their entirety and a new article 18 as set out in the document produced to the 
meeting and signed by the chairman of the meeting be substituted therefor and the remaining articles be renumbered articles 19 to 39.
by order of the board 
Secretary Registered office:
14 May 2008 Truscott House
 32–42 East Road 
 London N1 6Ab 
  TangenT communica Tions plc  annual report and accounts 2008  49
noTes
1.  A member entitled to attend and vote at the meeting is also entitled to appoint a proxy or proxies to attend, speak and vote instead of him. A member 
may appoint more than one proxy in relation to the meeting, provided that each proxy is appointed to exercise the rights attached to a different 
share or shares held by that member. A proxy need not be a member of the company. Appointment of a proxy will not preclude a member from 
attending and voting in person at the meeting. 
2.  To be effective, the instrument appointing a proxy and any power of attorney or other authority under which it is executed (or a notarially certified 
copy of such power or authority) must be deposited at the offices of the company’s registrars, Capita Registrars, The Registry, 34 beckenham Road, 
beckenham, Kent bR3 4TU no later than 10am on 22 July 2008. A form of proxy is enclosed with this notice.
3.  In the case of joint holders of a share the vote of the senior who tenders a vote, whether in person or by proxy, shall be accepted to the exclusion 
of the votes of the other joint holders. For this purpose seniority is determined by the order in which the names of the holders stand in the register 
of members in respect of the joint holding. 
4.  The following documents, which are available for inspection during normal business hours at the registered office for the company (public holidays 
excluded) will also be available for inspection at the place of the annual general meeting from 9.45am until its conclusion:
4.1 the register of interests of directors (and their families) in the share capital of the company; 
4.2 copies of all directors’ service contracts and letters of appointment; 
4.3 the articles of association of the company; and
4.4 a copy of the amendments proposed to be made to the articles of association pursuant to resolution 8 above.
5.  Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, the time by which a person must be entered on the register of members in 
order to have the right to attend and vote at the annual general meeting is 6pm on 22 July 2008 (being not more than 48 hours prior to the time fixed for 
the meeting) or, if the meeting is adjourned, such time being not more than 48 hours prior to the time fixed for the adjourned meeting. Changes to entries 
on the register of members after that time will be disregarded in determining the right of any person to attend or vote at the meeting.
6.  In order to facilitate voting by corporate representatives at the meeting, arrangements will be put in place at the meeting so that (i) if a corporate 
shareholder has appointed the chairman of the meeting as its corporate representative with instructions to vote on a poll in accordance with the directions 
of all of the other corporate representatives for that shareholder at the meeting, then on a poll those corporate representatives will give voting directions 
to the chairman and the chairman will vote (or withhold a vote) as corporate representative in accordance with those directions; and (ii) if more than one 
corporate representative for the same corporate shareholder attends the meeting but the corporate shareholder has not appointed the chairman of the 
meeting as its corporate representative, a designated corporate representative will be nominated, from those corporate representatives who attend, who 
will vote on a poll and the other corporate representatives will give voting directions to that designated corporate representative. Corporate shareholders are 
referred to the guidance issued by the Institute of Chartered Secretaries and Administrators on proxies and corporate representatives – www.icsa.org.uk – for 
further details of this procedure. The guidance includes a sample form of representation letter if the chairman is being appointed as described in (i) above.
7. Persons who are not shareholders in the company will not be admitted to the meeting unless prior arrangements are made with the company.
8. Explanatory notes in relation to the resolutions to be proposed at the meeting are set out in the following Explanatory notes. 50  TangenT communica Tions plc  annual report and accounts 2008
NOTICE OF ANNUAL GENERAL MEETING CONTINUED
Explanatory notes
Resolution 1: Reports and accounts
The directors are required to present to the meeting the audited accounts and the reports of the directors and the auditors for the financial year ended 
29 February 2008. 
Resolution 2: Declaration of dividend
Final dividends must be approved by shareholders but cannot exceed the amount recommended by the directors. 
Resolution 3: Re-election of director
Under the company’s articles of association directors are obliged to retire by rotation every three years. This year Nicholas Green is retiring and seeking 
re-election, his biographical details are set out on page 17 of the annual report.
Resolution 4: Re-appointment of director
Under the company’s articles of association directors who have been appointed since the previous annual general meeting are obliged to retire and 
seek re-appointment at the first annual general meeting after their appointment. Greg Jackson was appointed on 14 May 2008 so he is retiring and 
seeking re-appointment, his biographical details are set out on page 17 of the annual report.
Resolution 5: Re-appointment of auditors
The company is required to appoint auditors at each general meeting at which accounts are laid before the company, to hold office until the end of the 
next such meeting. This resolution proposes the appointment and, in accordance with standard practice, gives authority to the directors to determine 
the remuneration to be paid to the auditors.
Resolution 6: Authority to allot shares
This resolution authorises the directors to allot ordinary shares up to an aggregate nominal amount of £553,222. This is equivalent to 33% of the issued 
ordinary share capital of the company as at 14 May 2008. The authority will expire on 23 July 2013. Although the directors have no present intention 
of exercising this authority, it is considered prudent to maintain the flexibility it provides.
This resolution complies with institutional investor guidelines and will replace the authority given to the directors at the annual general meeting in 2007.
Resolution 7: Dis-application of pre-emption rights
If equity securities are to be allotted for cash, section 89 (1) of the Companies Act 1985 requires that those equity securities are offered first to existing 
shareholders in proportion to the number held by them at the time of the offer and otherwise in compliance with the technical requirements of that Act. 
However, there are occasions when it may be in the interests of the company for the directors to allot shares other than to shareholders in proportion 
to their existing holdings, or otherwise than strictly in compliance with those requirements.
This resolution would renew the authority of the directors to allot equity securities for cash without first being required to offer such securities to existing 
shareholders. The authority relates to allotments in respect of rights issues and similar offerings (where technical difficulties can arise in relation to fractional 
entitlements and overseas shareholders) and also generally in relation to other allotments up to £82,983 of nominal capital, being approximately 5% of the 
issued ordinary share capital of the company as at 14 May 2008. The authority will expire on 23 July 2013.
This resolution complies with institutional investor guidelines and will replace the authority given to the directors at the annual general meeting in 2007.
Resolution 8: Amendment to the articles of association
The Companies Act 2006 (the “2006 Act”) is being implemented in stages. The phase that is expected to come into force on 1 October 2008 introduces 
changes relating to directors’ conflicts of interest.
The new provisions mean that a director must avoid a situation where there is, or might be, a direct or indirect interest that conflicts with the company’s 
interests. The requirement is very broad and could apply if a director becomes a director of another company or a trustee of a different organisation. 
The 2006 Act allows directors of public companies to authorise conflicts and potential conflicts where the articles of association contain suitable provisions. 
The 2006 Act also allows the articles of association of a company to include provisions for dealing with directors’ conflicts of interest to avoid any potential 
breach of duty on the part of the directors. The amendments proposed to be made to the company’s articles of association (the “articles”) pursuant 
to resolution 8 give the directors authority to approve such situations and to allow conflicts of interest to be dealt with in a similar manner to the way 
in which they are currently handled.
The new provisions include safeguards so that only directors who have no interest in the matter being considered will be able to take the decision and 
in making the decision the directors must act in a way they consider most likely to promote the success of the company. The directors will also be able 
to impose limits or conditions on the authorisation that they have given.
The proposed amendments also contain provisions relating to confidential information to protect a director from being in breach of duty if a conflict 
of interest arises. These provisions can only apply where the situation giving rise to the conflict has already been authorised by the directors.
Given the staged implementation of the 2006 Act, a comprehensive review of the articles will be undertaken before the 2009 annual general meeting 
and it is anticipated that further amendments to the articles will be proposed at that time. TangenT communica Tions plc  annual report and accounts 2008  51
TANGENT COMMUNICATIONS PLC
(REGISTERED NUMbER 3967805)
FoRm oF pRo XY
(for use by ordinary shareholders for the annual general meeting to be held on 24 July 2008)
I/We (block capitals) ...........................................................................................................................................................................................................
of ......................................................................................................................................................................................................................................
being (a) holder(s) of ordinary shares in the company, hereby appoint the chairman of the meeting or (note 1)
.......................................................................................................to vote  ............................................................................... number of shares (note 1)
as my/our proxy to vote for me/us and on my/our behalf at the annual general meeting of the company to be held on 24 July 2008 and at any 
adjournment thereof.
I/We direct my/our proxy to vote as indicated by an X in the appropriate column (note 2).
If you wish to appoint multiple proxies please see note 2.
     VOTE 
  RESOLUTIONS FOR AGAINST WITHHELD
 1. To receive reports of the directors and the accounts.
 2. To declare a final dividend.
 3. To re-elect Nicholas Green as a director of the company.
 4. To re-appoint Greg Jackson as a director of the company.
 5. To re-appoint UHy Hacker y oung LLP as auditors of the company and to authorise  
  the directors to fix the auditors’ remuneration.
 6. To authorise the directors to allot securities up to a specified amount.
 7. To give the directors limited power to allot securities for cash without making  
  an offer to shareholders.
 8. To amend the articles of association.
Signature ...........................................................................................................................................................................................................................
Date ..................................................................................................2008
noTes
1.  To appoint as a proxy a person other than the chairman of the meeting, cross out the words “the chairman of the meeting” and write the full name 
in the space provided. If you wish your proxy to make comments on your behalf you will need to appoint someone other than the chairman and 
give them relevant instructions directly. A proxy need not be a member of the company.
2.  you may appoint one or more proxies of your choice to attend, vote and speak at the meeting and any adjournment thereof, provided each proxy 
is appointed to exercise rights in respect of different shares. To appoint more than one proxy (an) additional proxy form(s) may be obtained by 
contacting the Registrars or you may photocopy this page indicating on each copy the name of the proxy you wish to appoint and the number 
of shares in respect of which the proxy is appointed. All forms must be signed and should be returned to Capita Registrars in the same envelope.
3. Unless otherwise instructed the proxy will vote as they think fit or, at their discretion, abstain from voting. 
4.  The form of proxy must arrive not later than 48 hours before the time set for the meeting at Capita Registrars, The Registry, 34 beckenham Road, 
beckenham, Kent bR3 4TU. you may also deliver by hand to the same address during usual business hours.
5. A corporation must execute the form of proxy under either its common seal or the hand of a duly authorised officer or attorney.
6. The form of proxy is only for use in respect of the shareholder account specified and should not be amended or submitted in respect of a different account.
7.  The “vote withheld” option is to enable you to abstain on any particular resolution. Such a vote is not a vote in law and will not be counted in the 
votes “For” and “Against” a resolution.
8. Corporate representatives must make themselves known to the registrar prior to the meeting.
 business reply style
Business Reply
Licence Number
MB122
Capita Registrars
The Registry
34 Beckenham Road
Kent BR3 4BR
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 01 highlights 02 our business 04 chairman’s statement 06  business review: 
  06 overview  10 chief executives’ review
  14 financial review 16 board of directors 
 17 advisers 18 directors’ report 21 corporate governance statement 23 remuneration report 25 independent auditors’ report
 26 consolidated income statement 27 consolidated statement of  
  changes in equity 28 consolidated balance sheet
 29 consolidated cash flow statement 30 company statement of changes in equity 31 company balance sheet
 32 company cash flow statement 33 notes to the financial statements 48 notice of annual general meeting
 51 form of proxy ibc financial calendar
finanCial Calendar 
24 July 2008 annual general meeting
22 august 2008 dividend payment (subject to shareholder approval)
31 august 2008 financial half year end
november 2008 interim results announcement
28 february 2009 financial year end
may 2009  annual results announcement TangenT CommuniCa Tions PlC 
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annual report and accounts 2008
TANGENT COMMUNICATIONS PLC annual report and accounts 2008