Dobbies
Dobbies Garden Centres plc
Annual Report and Accounts 2005 2005
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Contents
Financial Highlights 01
Chairman’s Statement 02
Chief Executive’s Review 04
Finance Director’s Review 06
2005 Awards 08
Our Market Place 09
Investors’ Review 10
Directors’ Report 20
Corporate Governance Report 22
Directors’ Remuneration Report 26
Audit Committee Report 28
Statement of Directors’ Responsibilities 29
Independent Auditors’ Report 30
2005 Accounts 31
Consolidated Profit and Loss Account 32
Consolidated Balance Sheet 33
Company Balance Sheet 34
Consolidated Cash Flow Statement 35
Notes to the Accounts 36
Officers and Professional Advisers 55
Dobbies Locations 56
Dobbies is one of the UK’s
leading garden centre
specialists, with 17 stores
located across the UK 
and 5 more planned;
Dunfermline, Cirencester,
Sheffield, Milton Keynes 
and a first in Ireland, 
with Belfast.
This annual report has been printed on
paper certified in accordance with the 
rules of the Forest Stewardship Council
Cert no. SGS-COC-1722 Dobbies Garden Centres Plc Annual Report & Accounts 2005
Financial Highlights
01
Winter
quarterly 
sales up
5.8% (like for like)
2005 2004 2003 2002 2001
46,118
30,450
54,066
60,620
38,361
Sales up 12.1%
to £60.6 million
(1) Excluding profits from disposal of fixed assets of £0.5 million in 2004 and £2.4 million in 2002.
(2) EPS for 2001 has been restated for adoption of FRS19 Deferred Taxation.
Sales (£000)
Spring
quarterly 
sales down
2.0% (like for like)
2005 2004 2003 2002 2001
5,417
3,714
6,232
7,068
4,646
Operating profit
up 13.4% to 
£7.1 million
Operating profit (£000)
Summer
quarterly 
sales up
1.2% (like for like)
2005 2004
(1)
2003 2002
(1)
2001
4,152
2,924
4,743
4,953
3,655
Pre-tax profit
up 4.4%
(1)
to 
£5.0 million
Pre-tax profit (£000)
Autumn
quarterly
sales up
1.8% (like for like)
2005 2004 2003 2002 2001
(2)
29.6p
21.8p
33.3p
34.3p
26.3p
Earnings per
share (EPS)up
3.0%
(1)
to 34.3p
Earnings per share (pence) Chairman’s Statement
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02
The Year’s Results
The past year has been one of further progress, albeit the
trading conditions we have had to operate in have been
tough. Our sales rose 12.1% to £60.6 million, our profits
before tax by 4.4% to £5.0 million and our earnings per
share by 3.0% to 34.3p (adjusting for the £0.5 million gain
on sale of fixed assets in 2004). These numbers were
affected by many factors – good and bad weather at
different times, a new store opening, a challenging
consumer expenditure environment and continued pressure
on our costs from outside influences such as the oil price,
taxation and regulation and from inside influences as we
build and develop our next generation management team.
These are matters that James Barnes and Sharon Brown
address in some depth in their reviews.
The Board of Directors is recommending a final dividend of
6.55p per share, which if approved by Shareholders will
make total dividends for the year 9.75p, an increase of
10%. It is a higher increase than that of the earnings per
share and reflects the Board’s confidence in the future.
Long-Term Strategy: the past five years
For a number of years Dobbies has had a strategy of
expanding the Company’s business through developments
and improvements in its existing portfolio of centres and
through the opening of new ones. At the heart of all that we
do is the pursuit of excellence and that has led us to 
keep on developing the format of new centres so that they
are at the leading edge of garden centre merchandising.
Our new store at Stirling is certainly testament to the
exciting retailing concept that we have created – aiming to
bring “inspiration, education and entertainment” to our
customers when they shop with us.
I would like to add that we aim to achieve these goals 
while at the same time being good employers and being
environmentally responsible.
In planning and making our financial assessments for a
new store, we are of the view that it takes approximately five
years for a new centre to reach maturity and earn the return
objectives set for it. As a consequence we feel that five
years is an appropriate period to account to Shareholders
for our longer-term performance, which it is important to do.
There have been two major influences on our results over
the past five years:
• a consumer boom in the early years; and
• considerable investment in our future development.
The former has matured into a challenging period for
retailers as interest rates were raised to head off threatening
inflation. Our considerable investment has been made in
three areas: in new sites for development (we have
invested £62 million in our fixed asset base), in building our
management team and improving our information
technology systems. These latter influences have resulted
in the slowing down of our growth rate recently – albeit we
believe temporarily – but with the real prospect of a
consequential and considerable pick-up in the growth of
our sales and earnings within the next five years.
Over the last five years our sales have grown from 
£23.6 million to £60.6 million, a compound rate of growth 
of circa 21% per annum. The growth can be attributed to
like for like sales growth, which averaged 8% per annum
over the period, and to new square footage, which
increased by about 60%, as we opened or redeveloped
seven centres and we closed two small ones. By the end 
of the period our average sales per store had risen from
£1.5 million to £3.6 million, which is a reflection of our
commitment to large, attractive garden centres.
Our earnings per share have grown from 23.3p to 34.3p, 
a compound rate of growth of 8.1%. There are three factors
which have affected its growth rate: firstly our gross profit
margin has risen over the period from 46.3% to 48.5%,
largely as a result of the improvement this year, as our
investment in Electronic Point of Sale (EPOS) begins to 
pay off; offsetting this has been the rise of 24% per annum
in our operational expenses. Although there have been
some cost inflationary pressures, the main reason for the
increase has been our investment in additional people 
and systems as we have geared for the next stage of 
our growth. Finally, the increases in our interest costs and 
in the number of shares outstanding reflect the capital
requirements of that next stage of our growth.
As Shareholders know, we prefer to own rather than lease
the centres from which we operate, believing that there are
important long-term advantages both to our operating
flexibility and to the growth of Shareholder value. Of the 
£62 million that we have invested in new and existing
centres during the last five years, £23 million has been
generated by our cash flow, £5 million of new equity and 
£34 million out of the facility that we have with the Bank of
Scotland. The guideline policy of the Board on borrowings
is to finance the centres two thirds by borrowings and one
third by Shareholders’ equity. At the end of the period we
had fixed assets of £89 million (up from £33 million) with
debt of £47 million (53% of fixed assets) and Shareholders’
equity of £40 million (44%). We own all but our Aberdeen
Centre, which is on a very long lease.
Remuneration of Executive Management
As the management team has grown and as more stock
options have been awarded, the Board of Directors has
become increasingly concerned about the ineffectiveness Dobbies Garden Centres Plc Annual Report & Accounts 2005
Alex Hammond-Chambers
Chairman
of the option programme in making executive
management long-term Shareholders; it is,
after all, the objective of such share incentive
plans. In practice the cost of the options and
the taxation involved in exercising them
means that few of the shares can be retained
by the beneficiaries; and, with the exception
of the Executive Directors, beneficiaries have
tended to sell all of their shares, with the
result that stock options turn out to be an
expensive way of financing a bonus.
The Remuneration Committee has worked
with Shepherd & Wedderburn in constructing
a new share incentive programme, which will
be placed before Shareholders at the
forthcoming Annual General Meeting (AGM).
In brief it substitutes the current share option
plan for the Executive Directors with a Long
Term Incentive Plan (LTIP) and adds an
incentive to the Approved Option Plan for the
Management Board Directors to retain their
shares. In both cases there are performance
criteria attached to the vesting of shares.
The details of the new share incentive 
plans and other remuneration are laid out 
in the Remuneration Report and in the
accompanying proxy circular. May I please
ask any Shareholder who has any comments
or questions about these or about any other
issues in that circular to contact me before
the AGM.
The Annual General Meeting
The AGM will be held at the Company’s
offices (located at the Melville Garden
Centre, just south of Edinburgh) at 12 noon
on Friday 28 April 2006. I do, as always, urge
as many Shareholders as possible to attend
the meeting at which James will make a
presentation on the year just past and on the
prospects for the future. A lot of Shareholders
have attended in the past and your
comments and questions have always been
most helpful, for which I thank you.
At this AGM David Barnes will not be
standing for re-election. The Company and
Shareholders owe him a great debt of
gratitude, for it was he who effectively started
Dobbies along its growth path as a modern
garden centre chain. After he acquired
ownership of the Company he set about
developing new stores and had the vision to
centres, particularly where we develop
green-field sites, whenever possible and
when it makes financial sense to do so.
Our investment in additions to our senior
management team (it is I believe an excellent
team) is key to such success and it is
beginning to pay off. It has started to produce
results in such areas as the buying and
management of our stock, our merchandising
and our marketing. Our property team has
produced a good portfolio of sites for
development and is working on others for
future development; our current portfolio of
trading centres is, as a whole, quite immature
and should produce above average growth.
The Board of Directors has a great deal of
confidence that the considerable investments
that we have made will pay off satisfactorily;
at the risk of repeating myself again, the
reason for all of our investment is to achieve
exactly this. Although the current year will be
a challenging one, I believe we can look
forward to higher rates of growth as well 
as higher absolute levels of sales, profits 
and profitability emerging within the next 
five years.
see that the size and scope of garden
centres would change to become the large
attractive centres that they are today. Being
an eminent horticulturist, he also understood
well the needs of gardeners as customers.
Since relinquishing the position of Executive
Chairman in 1994, he has served as a 
Non-executive Director. David, on behalf of
all of us – Shareholders and employees –
many thanks for all that you have done for us.
We are in the process of finding a new
independent Non-executive Director whom
we would expect to appoint during the
course of the year.
On behalf of Shareholders, I would also like
to thank James, Johnny and Sharon, all their
colleagues who work for the Company
(whether at head office or at the centres) and
my three Non-executive Director colleagues
for all the hard work and commitment which
has enabled the Company to make further
progress during the year.
Long-Term Strategy: the next five years
The strategy remains the same – to increase
the value of Shareholders’ investment in
Dobbies Garden Centres, by developing the
sales and returns of the centres that we are
already operating and by adding new ones,
always pushing out the boundaries of the
retailing concepts we offer to our customers. 
I anticipate that we will continue to own our
Alex Hammond-Chambers
Chairman
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04
James Barnes
Chief Executive
Our strategy is clear: to establish Dobbies as a leading homes
and gardens retailer in the UK.
We will differentiate ourselves by enhancing the ‘Dobbies
experience’, setting new standards via our store infrastructure,
our shopping environment and the wide range of related
products and services that deliver a real destination retail 
and leisure proposition. Dobbies Garden Centres Plc Annual Report & Accounts 2005
Chief Executive’s Review
05
Trading
Although we have grown both sales and
profits, this has been a challenging year for
Dobbies, with the downturn in consumer
spending being a key determinant of like
store sales performance.
Total sales increased by 12.1% to £60.6
million driven by a full year contribution from
our store at Ayr (opened March 2004), a new
store at Stirling and a redeveloped store at
Ponteland, both of which opened for trade in
March last year. Like for like sales rose 1.5%
in the established store base with
restaurants performing extremely well at
+13.4% and continuing to act as a footfall
driver to all stores. Garden centre like for like
sales (excluding restaurants) saw sales
marginally lower at – 0.7%. Within this we
experienced sales growth of 2.2% in our
core gardening and aquatics offer, offset by
a 3.5% decline in plant sales, impacted 
by an early Easter and poor weather in April.
Although sales of our indoor living range
declined by a similar amount, furniture sales
grew in excess of 4%.
A particularly successful area was our
venture into farm foods and local produce
and, although early days, turnover in this
division reached £1.8 million. We currently
have four food halls, located in Edinburgh,
Ayr, Stirling and Ponteland, and it is a
concept we intend to invest in further.
Margin
With a weak sales environment our focus 
on margins and costs has been in part
rewarded, and I am pleased to report that
our gross profit margin has increased by
1.5% to 48.5%. A contribution from increased
buying margin and reduced shrinkage offset
a higher level of discount. We expect further
margin gains in the future. 
Although we experienced some significant
cost pressures, largely from increases in
business rates and energy prices, our 
stores did well to control costs. Total
operating profits rose 13.4% to £7.1 million.
Our operating margin increased to 11.7% of
sales (2004: 11.5%) despite absorbing a
planned increase in central overhead which
continues to grow as the business gears up
for further expansion. 
Investment
Our capital investment in the business
reached a record £21.6 million in the year.
This delivered a number of key projects,
including the new 55,000 sq. ft. store at
Stirling, which includes various horticulturally
related visitor attractions, including Scotland’s
largest maze. The Stirling store has traded
particularly well and underwrites our formula
for future expansion. Our store at Ponteland,
near Newcastle, has undergone a complete
redevelopment to a 50,000 sq.ft Garden World
format. New site acquisitions were made at
Sheffield and Cirencester.
We actively manage our property portfolio,
and our asset base was further strengthened
by the acquisition of the freehold interest and
buildings of our store at Perth for £4.1 million.
We closed our smallest garden centre at
Helensburgh in August in anticipation of
redevelopment, likely to be for alternative use.
In addition we spent £1.8 million enhancing
established stores and, with the growth in
demand for our catering offer, extended 
our restaurants at Perth, Milngavie, Aberdeen
and Dalgety Bay to provide additional covers.
Marketing
As our business expands geographically, 
so does our need to extend brand awareness.
To this end we have developed a new
seasonal television campaign that reinforces
our brand identity. At the same time we 
have recognised the need to drive immediate
footfall through our extensive local and 
event-driven promotional programmes.
Once again we have seen success at local
flower shows and charity events. This will
become even more important in the year
ahead and I would like to thank and give
encouragement to all the staff who help and
participate in raising our profile locally.
People
Looking to the future we continue to build our
management team both through internal
promotion and by bringing on board a range
of retail experience. Gordon Mackenzie joined
us as Director of Retail Operations in June
having 10 years’ experience with B&Q. 
His appointment was complemented by the
recruitment of a Shrinkage Manager and
Human Resources Manager at the turn of the
year. We have included a brief CV of each
member of our management board and a
small selection of our staff within the Annual
Report, demonstrating the level of knowledge
and experience we have within the business. 
I would like to thank all of our staff for the
effort and commitment they have made to 
the business under difficult trading conditions. 
Outlook
The prospects for the current financial year at
present look equally challenging to those of
the past year. However, we have a number 
of key advantages and opportunities that
continue to move the business forward,
notably our ability to: 
• Deliver margin improvements. We believe
the trend established this year should
continue. 
• Operate new stores that contribute to
operating profits in year one and deliver
economies of scale to the whole business
in the future.
• Innovate and change the mix of our
product offer that allows us to exploit 
new areas of growth and affords us a
spread of risk that perhaps didn’t exist 
in previous years.
We have two new stores to open this financial
year, at Cirencester in April and Milton Keynes
in October. In addition to Sheffield, we have
entered into conditional contracts to acquire
two other sites, subject to planning: at
Dunfermline and Lisburn, near Belfast. 
This pipeline of new stores should enable 
us to fulfil our strategic aim of increasing the
size of our portfolio, by adding two to three
new stores each year, and to grow both sales
and profits. 
Notwithstanding the short-term outlook we
remain excited and confident about our
prospects and our position in the garden
leisure industry.
James Barnes
Chief Executive
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06
Sharon Brown
Finance Director
2005 2004 2003 2002 2001
£000 £000 £000 £000 £000
Turnover 60,620 54,066 46,118 38,361 30,450
Increase on previous year 12% 17% 20% 26% 29%
Like for like increase 2% 5% 10% 8% 16%
Operating profit 7,068 6,232 5,417 4,646 3,714
Profit on disposal of fixed assets 479 2,357
Adjusted profit before interest and tax
(1)
7,068 6,232 5,417 4,646 3,714
Interest (2,115) (1,489) (1,265) (991) (790)
Adjusted pre-tax profit
(1)
4,953 4,743 4,152 3,655 2,924
Adjusted profit after tax
(1)
3,410 3,286 2,907 2,558 1,985
Pence per ordinary share
Adjusted basic earnings
(1)(2)
34.3p 33.3p 29.6p 26.3p 21.8p
Adjusted diluted earnings
(1)(2)
34.0p 33.0p 29.5p 25.9p 21.2p
Dividend 9.75p 8.86p 8.05p 7.30p 6.65p
Total fixed assets 88,887 70,023 58,895 52,980 45,279
Debt 47,481 30,938 24,334 21,668 18,790
Shareholders’ funds
(2)
39,808 37,174 34,183 31,951 27,449
(1) Excludes profit on disposal of fixed assets.
(2) Information for 2001 has been restated for the adoption of FRS19 Deferred Taxation. Dobbies Garden Centres Plc Annual Report & Accounts 2005
Finance Director’s Review
07
Financial Performance
In the year to 31 October 2005, total
turnover increased by 12.1% to 
£60.6 million. This included a full year 
of sales from our store in Ayr which
opened in March 2004, part year of 
sales from our new store in Stirling and 
our redeveloped store in Ponteland, 
both opened in Spring 2005, combined
with like for like growth of 1.5%. 
Gross profit margin increased from 47.0%
to 48.5%. This growth was aided by 
having better visibility from our EPOS
system, and using this data to make
supply chain improvements, improve our
stock management and supplier terms.
0.3% of the growth was due to an increase
in the mix of sales from our restaurants,
which have a higher gross margin than
other business sectors. 
Other operating income, which relates
largely to income from on site concessions,
increased by 37.6% to £1.6 million. 
Gross profit from sales combined with
other income therefore rose by 16.6%.
After the deduction of costs, which
increased by 17.6%, operating profit
increased by 13.4% to £7.1 million,
representing 11.7% of sales (2004: 11.5%).
Earnings per share, adjusted for the
exceptional gain of £0.5 million on sale of
fixed assets in 2004, increased by 3.0%.
Since listing in 1997, compound growth in
earnings per share is 8.8%.
Dividend
An interim dividend of 3.20p per ordinary
share was paid in October 2005 and the
Board is recommending a final dividend of
6.55p per share. The dividend payment is
10% higher than last year.
Balance Sheet/Cash Flow
During the year we invested £21.6 million
in fixed assets, the largest annual
investment we have made to date. 
This included:
• £4.6 million on acquiring the freehold
interest of our stores at Perth and
Helensburgh (the Helensburgh freehold
was purchased with the intention of
development for alternative use)
• £5.7 million on assets which are
currently under construction
• £11.3 million on the Stirling and
Ponteland developments, combined with
expenditure on the existing portfolio.
Our fixed assets therefore increased to 
£88.9 million. Approximately two thirds of
our asset base is less than five years old,
which highlights the immaturity, and hence
future potential, of the current portfolio.
Cash generated from operations totalled
£9.8 million. Net debt at 31 October 2005
was £47.5 million, which represents 53% 
of fixed assets. During the year we
renegotiated our borrowing facilities with
the Bank of Scotland. In addition to
obtaining a reduction in our interest rate
margin, our facilities were increased 
to £70 million. 
Shareholders’ funds at the year end
totalled £39.8 million, representing a 
Net Asset Value per share of exactly £4.
Pensions
In addition to a defined contribution
pension scheme, we operate a final salary
pension scheme which was closed to new
employees in March 2000.
Full details of the final salary scheme 
are contained within note 22 of the 
Annual Report. 
At the most recent SSAP24 actuarial
valuation at March 2004, the scheme
assets were valued at £971,000 and the
liabilities at £1,315,000, generating a
deficit of £344,000. This historic deficit will
be funded by the Company over the next 
10 years. In addition, the total future
funding rate will be increased from 9.6% 
to 12.0%, which will be funded equally by
the Company and the scheme members.
FRS 17 will be adopted fully for the
accounting period ended 31 October
2006, with any surplus or deficit being
reflected in the balance sheet.
International Accounting Standards
Implementation of International Accounting
Standards is mandatory for AIM listed
companies for results reported for the year
commencing 1 January 2007. We will
consider whether early adoption is
appropriate once the full implications of
introduction have been assessed.
Sharon Brown
Finance Director
6 February 2006 november 04
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8
Johnny Trotter
Operations Director
1st Place
Best Garden Centre Retailer of
Greeting Cards (The Greeting Card 
Retailing Awards 2005)
1st Place
Best Garden Centre Retailer of 
Gifts for the second year running 
(The Greats Gift Retailer Awards 2005)
1st Place
Best Communication Award
(AIM Awards 2005)
GOLD
2005 Ayr Flower Show
GOLD
2005 Gateshead Flower Show
2005 Awards Dobbies Garden Centres Plc Annual Report & Accounts 2005
Our Market Place
9
Notwithstanding the challenging retail environment, we have
an exciting time ahead with new store openings and continuing
product innovation.
Horticulture remains at the core of our business and we will
expand on the inspiration and advice that we can offer 
our customers.
As the Dobbies offer broadens into complementary areas, 
we will continue to evolve our restaurants and farm food 
halls as centres of excellence within the retail format.
“Annual retail sales 
of garden products are around 
£5 billion, with plants accounting
for a third of all consumer spend.”
(Garden Industry Monitor/HTA)
“84.5% of UK adults
have access to a garden and a further
6% have some other type of patio,
roof terrace or balcony.”
(NOP/Mintel)
“The total garden market
is currently worth more than the
soft drinks and confectionery
markets combined.”
(Garden Industry Monitor/HTA)
“28 million adults in the UK
regularly spend money on 
garden products.”
(Garden Industry Monitor/HTA)
“Ageing population should
equal more gardeners.
Between 2005 and 2010 the 45–54 
year-old-age group is predicted to 
by increase by 10.7%, the 55–64s by
4.6% and the over 65s by 6.6%.”
(Mintel)
“Anything to make life easier. 
Time-saving devices will continue to
increase in popularity, as well as
gardening solutions that are easy,
convenient and represent good value.”
(Mintel) november 04
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winter
10
Total sales
£12.6 million
Like for like 
sales up 5.8%
November 04
to January 05 Dobbies Garden Centres Plc Annual Report & Accounts 2005
Investors’ Review 1st quarter 2005
11
winter
As the gardening season draws to a close,
one of our key objectives is to reduce 
the level of seasonality in order to sustain
footfall and revenue throughout the year.
December now accounts for 10% of annual
sales, compared with 6% ten years ago.
Dobbies are proud to have one of the
biggest and best Christmas collections on
offer and this, together with the mild
weather, helped to contribute to a 5% like
for like increase in Christmas sales over the 
festive period, outperforming the industry
average. The best sellers included 
18,000 fresh Christmas trees and 22,000
traditional Poinsettias.
The Dobbies Farm Food Halls experienced
their first Christmas, which proved to be 
a great success, with food lovers and
shoppers looking for gourmet festive treats
and quality local produce.
Santa’s arrival in November continues to
grow in popularity. This year the event
attracted record crowds to see Santa arrive
on various modes of transport from
helicopter to huskie-drawn sleigh! This was
instrumental in promoting “Santa’s grotto” and
the introduction of Santa breakfast events
which proved a successful innovation. 
The annual Gardening Club Christmas
shopping event in November once again
was popular, with members benefiting from
20% off purchases.
Development of the EPOS system has
facilitated more detailed analysis of the
spending pattern of our loyalty members,
which has revealed that the average
transaction value of members is about 70%
higher than that of non-members. Year on
year, total membership of the Gardening
Club was up 17.8% at 29,500 members. 
With the weather having been particularly
mild, the January Sale performed well. 
Plant sales were strong with a like for like
increase of 8.6%. Over the nine-week period
to 2 January 2005 total sales increased by
16.3% with like for like sales growth of 4.9%.
Deborah Robertson DipM
Director of Marketing
From the Management Team 
“With a rapid growth programme 
and continuous expansion of our
lifestyle product range, there was 
a strong need to differentiate
Dobbies from the traditional garden
centre. In order to achieve this, we
appointed brand consultants, Merle,
to raise the profile of the growing
company and to communicate the
wider shopping experience on offer.
A modern lifestyle TV campaign and media
creative was launched in Spring with 
a continuation on the theme planned for
Christmas 2005. The campaign was supported
by local marketing activities and the
development of tactical marketing plans 
for specific areas and individual stores. 
With continued focus on widening the 
target audience, in-depth knowledge of 
our customers remains key. The ongoing
development of our database, together with
research and focus group feedback, will
provide us with information to build a picture
of Dobbies evolving customer base.”
Marketing credentials
Deborah joined the Company in January 2004
from Gyle Shopping Centre where she was
Marketing Manager for five years. She has
over 20 years’ marketing experience having
worked for a number of blue chip companies.
Dobbies welcomed
over 1.7 million
customers to stores
during the festive
period which was an
increase of 15% 
on the same period in
the previous year. february
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spring
12
Total sales
£14.7million 
Like for like 
sales down 2.0%
February 05
to April 05  Dobbies Garden Centres Plc Annual Report & Accounts 2005
Investors’ Review 2nd quarter 2005
13
spring
Spring heralds the launch of the gardening
season and, following strong sales over the
Christmas period, there was anticipation of 
a buoyant Spring to energise plant and
gardening sales.
Poor weather combined with a very early
Mother’s Day and Easter impacted on
performance, resulting in a slow start to the
gardening year with the greatest influence
on plants and outdoor furniture sales.
However, it seems it’s never too early for
chocolate with record sales of more than
7,000 chocolate easter bunnies! 
On the development front, Spring proved to
be one of the busiest in recent times with
continued focus on expansion and the
launch of two new stores:
• A £7 million new store in Stirling, built 
over 20 acres of land and combining an
integrated visitor attraction with a 55,000
sq. ft state of the art garden centre. 
The site incorporates several new and
innovative concepts including Scotland’s
largest maze and an arboretum (which
over time is set to become Scotland’s
largest collection of Rowan trees), water
gardens, spectacular riverside walks and
an interactive tourist observation point. 
In its inaugural year the store has traded
above our initial expectations;
• And a £5 million redevelopment of our
existing Ponteland store which increased
the retail space from 19,000 sq. ft to
50,000 sq. ft. The outdoor plant area
increased by almost four times its original
size to create a “superstore” with a
dedicated Aquatics department and 
280-seat restaurant with conservatory.
Following the successful launch of our farm
food halls at Edinburgh and Ayr the
concept has been incorporated into both of
the new developments and will remain an
integral component of the footprint for future
new stores, building on the demand for
quality local produce.
Restaurants continue to play an important
role in establishing the stores as a
destination day out and we have introduced
contemporary features to the restaurants 
in these new stores including a fresh fruit
and juice bar and a dedicated coffee area.
To meet the ever-increasing demand on our
catering offer we extended our restaurants in
Perth, Dalgety Bay, Dundee, Milngavie and
later in Aberdeen to include modern, new
conservatories. The additional space not
only allows us to accommodate more
customers, but offers them a tranquil
ambience in which to relax and enjoy the
natural surroundings. This in turn paves the
way for increased footfall and revenue from
this section of the business. 
Dobbies is committed to continually
enhancing the retail offer and this is evident
from the addition of key concessions within
the new stores. Brand affinity is important 
to us and the concessions we have
introduced are selected to complement the
Dobbies offer. 
A new brand identity was created to bring
together the Dobbies experience and our
horticultural expertise introducing the
strapline “it’s in our nature”. The creation of 
a £250,000 lifestyle TV advertising campaign
was supported by an integrated marketing
strategy with the objective of targeting a
wider audience and communicating the
extensive product diversity.
A national events programme was
developed to create additional reasons to
visit and to add enjoyment to the shopping
experience. The programme commenced
with a Spring launch which featured planting
demonstrations and lawncare workshops. 
Stuart Wright BLE MRICS
Director of Property and Development
From the Management Team 
“In addition to maintaining and
developing our existing property
portfolio, we continue to pursue our
expansion plans with the aim of
achieving at least two new store
openings per year.
To help us achieve these objectives the
Property Team has been expanded with 
the appointment of David Clark as
Development Manager, who joined us in
November 2004 after 16 years as Construction
Controller for Safeway Stores plc.
Major achievements this year include the
completion of the £7 million Garden World 
in Stirling, the £5 million redevelopment 
of our Ponteland store and the addition of 
five restaurant extensions across the Group.
We have also contracted to acquire five new
sites in Cirencester, Milton Keynes, Belfast, 
Sheffield and Dunfermline. Cirencester 
will open in Spring 2006 and Milton Keynes
in October 2006.”
Property credentials
Stuart joined Dobbies as Director of Property &
Development in March 2002 after 16 years
with CB Hillier Parker as a Director specialising
in retail property. may
june
july
2005
summer
14
Total sales
£20.3 million
Like for like 
sales up 1.2%
May 05 
to July 05  Dobbies Garden Centres Plc Annual Report & Accounts 2005
Investors’ Review 3rd quarter 2005
15
summer
As we entered into Summer, consumer
spending remained weak. However 
a warm May and a joint promotion with
Scotsman Publications in Scotland were 
the key drivers in boosting sales of furniture
and barbecues. 
Local press was used to mirror the
promotion for individual stores in England
throughout June and July. 
Outdoor Living continues to grow in
popularity and has become an increasingly
important part of the business, with more
and more people viewing their garden 
as an extension to their home. Outdoor
entertaining and dining with friends and
family is as popular as ever, and our
product range has been greatly expanded
to accommodate growing demand for
innovative furniture, chimineas, patio
heaters, outdoor lighting and picnicware.
With the introduction of centralised stock
management of furniture and barbecues
(previously controlled locally) we are now 
able to maximise sales potential and
achieve more efficient stock holding 
and replenishment. 
The buyers focus is to select a product
range which differentiates us from the
competition and which appeals to a wider
customer base, offering quality and value
for money.
One of the new summer ranges which is
increasing in popularity is outdoor toys 
and games, a growing trend which looks 
set to continue.
Inspiration, education and entertainment
remain key brand values and to celebrate
the launch of Summer a national event was
held taking the format of a fun and
informative day out for customers.
Barbecue and planting demonstrations,
furniture and lawncare workshops, food
sampling and various in-store promotions
took place throughout the stores. Customers
were encouraged to join our loyalty club
with a lucrative double points offer which
proved to be influential on furniture and
barbecue sales. 
True to our longstanding reputation for
plantsmanship, we continue to support local
horticultural events. Our drive for quality
and innovation has earned us 
a number of accolades, most recently
achieving Gold at the 2005 Ayr and
Gateshead Flower Shows. 
June also saw the official Royal opening 
of our new Stirling store by Her Royal
Highness, Princess Anne, when she 
toured the store and met with staff. 
The Summer holiday period marks the key
season for our visitor attractions at the
Edinburgh and Atherstone sites. These
attractions build on the day out destination
experience opening this up to a much wider
audience and extending the length of their
visit. More importantly they continue to
generate additional footfall and revenue to
the site, with total visitor numbers reaching
over 100,000 this year. 
In June we entered into conditional
contracts for new sites at Sheffield,
Cirencester, Lisburn (Belfast), Milton
Keynes, with a further site in Dunfermline
announced later in the year. Two of these
new developments are due to open in 2006:
Cirencester in Spring and Milton Keynes 
in Autumn. 
We also took the opportunity in this quarter
of buying in the leasehold interest of our
Perth site. This means that, with the
exception of our site at Aberdeen (which
has a 150 year ground lease), all of our
sites are now freehold.
Susan MacDonald BACC (Hons), CA
Director of Buying & Merchandising 
From the Management Team 
“Since taking up this role one of my
first tasks was to integrate the two
previously separate teams of buying
and merchandising. Development 
of the retail EPOS system was the
next important milestone to enable
the teams to make informed and
tactical decisions relating to sales,
stock and margin. 
In addition, the product hierarchy has been
restructured into six key divisions to provide
more balanced and commercially focused
performance reporting.
2005 also saw the introduction of centralised
ordering, distribution and replenishment of
furniture and barbecues, which resulted in
improved stock availability and increased 
sales and margin. We will further develop 
this strategy in 2006 across other areas of 
the business.”
Merchandising credentials
Susan joined Dobbies as Senior Merchandiser 
in 2002 after spending five years with
Debenhams plc where she held various
merchandising positions within the Menswear 
& Childrenswear Divisions. In January 2004 
she was appointed Dobbies first Director of
Buying & Merchandising. august
september
october 05
2005
autumn
16
Total sales 
£13.0 million
Like for like 
sales up 1.8%
August 05 
to October 05  Dobbies Garden Centres Plc Annual Report & Accounts 2005
Investors’ Review 4th quarter 2005
17
autumn
An Indian Summer together with an end-of-
season sale improved sales of plants 
and gardening products during the final
quarter, with plants up 1.2% and
gardening up 3.9% like for like. Sales of
garden furniture remained strong
throughout the Autumn months. 
With the soil warm and rich with nutrients,
Autumn is the best time of year for
gardening and planting and in order to 
raise awareness and generate footfall we
held a national Autumn Launch. The event
centred on nature’s planting time, with
planting demonstrations, food tasting and
seasonal offers. Tree sales doubled over
this weekend and a double points
promotion assisted furniture sales, which
increased by over 40% on the same
weekend in the previous year.
One of the challenges facing the stores 
at this time of the year is achieving the
correct balance between the phasing out 
of the Autumn ranges and the introduction 
of the new Christmas lines so as not to
damage sales in key areas. 
Christmas presents a major opportunity for
innovation and differentiation. Dobbies
continues to actively source new and
exciting products from around the world,
with animations and fibre optics proving to
be highly popular lines. By tapping into the
key trends and styles we aim to introduce
inspirational colours and themes to allow
customers to create their own individual
festive look. 
The horticultural theme is continued
throughout the Christmas product offering
and a new range of ‘prêt à porter’ style
festive houseplants was introduced to
stores. This provided customers with an
instant gift solution.
A charity evening across all stores was
held in early October to launch the new
Christmas collection. Seasonal inspiration
was the theme, with demonstrations,
musical performances and festive treats in
the restaurant, but the major focus was on
local community support and involvement.
The event raised over £14,000 for local
charities from ticket sales. 
In addition each centre dedicated an 
18 ft “wish tree” to collect Christmas
wishes over the festive period. Wish
baubles carrying personal messages 
were completed by customers and
displayed on the tree, creating a pleasant
and fun way for customers to express 
their Christmas wish and generating a
further source of income for the
designated charities.
Gordon MacKenzie MHCIMA
Director of Retail Operations
From the Management Team 
“Since my appointment I have 
been reviewing current processes,
policies / procedures and internal
communications to ensure clarity 
in the business.
A major challenge for the next year is 
the training and development of the
operational team which will enable them to
assist with the growth of the business, in a
fast-moving, changing retail environment. 
This year’s focus on cost control will be
managed by establishing effective people
deployment and the reduction of 
shrinkage / stock loss. This reduction will 
be facilitated by the new Shrinkage Manager,
Leigh Stirling, who joined the Operations 
team in October 2005. 
The introduction of measurable key
performance indicators, aligned to the
business plan, will allow vision and clarity 
for all employees to support the delivery of 
the 2005/6 business objectives.
The aim is to ensure Dobbies delivers the best
service and stock availability we can, to ensure
customer satisfaction.”
Retail credentials
Gordon joined Dobbies as Retail Director in
June 2005 after over 10 years' experience with
B&Q, where he was Regional Manager for
Warehouse North Division. He previously held
various roles within B&Q including Service
Change Programme Manager.
2005
2004
2003
2002
1,499
1,237
1,051
913
Average number of staff Board of Directors
november 04
december
january 05
february
march
april
may
june
july
august
september
october 05
2005
18
David Stevenson CA
Non-executive Director
Johnny Trotter
Operations Director
William Thomson CA
Non-executive Director
Alex Hammond-Chambers MA
Non-executive Chairman (age 63)
Alex brings a wealth of experience 
in City, financial and corporate
governance matters. He worked for 27
years for fund managers Ivory & Sime,
the last six as Executive Chairman. 
He is currently Chairman and/or
Director of a number of investment
trusts and companies and during the
year was Chairman of the Association
of Investment Trust Companies.
He joined the Board of Dobbies, then
a private company, as Chairman in
1994. As well as chairing the Board, he
chairs the Remuneration, Nomination
and Corporate Governance
committees and serves as a member 
of the Audit Committee. During this
year he worked with advisors on 
the development of new executive
remuneration structures, including the
proposed Long Term Incentive Plan. 
James Barnes BA
Chief Executive (age 45)
James’s career began at the City firm
of L Messel & Co. in 1983. He became
an associate director in 1986, shortly
after the company merged with
Shearson Lehman. In 1987 he joined
Prudential Bache (Capital Funding)
until his departure to join Dobbies in
1989. He is currently a Non-executive
Director of Dunedin Smaller
Companies Investment plc and
Midlothian Enterprise Trust.
In 1994 James was instrumental in an
MBO, after which he was appointed
Managing Director. In 1997 he became
Chief Executive, when the company
floated on AIM. He is an effective
leader and during the year he
continued to focus on building and
development of the senior
management team. He is also a 
strong promoter of new ideas, 
helping Dobbies earn its reputation 
for innovation.
Sharon Brown FCMA
Finance Director (age 37)
Sharon worked in the manufacturing
industry for five years before taking 
up a senior financial position within
the retail division of John Menzies plc
in 1991. 
She joined Dobbies as Business
Development Manager and Company
Secretary in 1998, and was appointed
Finance Director in March 2000. 
During 2005 Sharon renewed and
renegotiated our banking terms,
increasing the borrowing facility and
reducing margins. In addition to her
finance responsibilities she oversees
the IT function, including development
of the all important EPOS system.
Johnny Trotter
Operations Director (age 57)
Having completed his training with
Waterers, Johnny returned to Scotland
in 1975 to develop Mortonhall Garden
Centre. Becoming owner in 1981, he
subsequently sold the business in 1987.
With 26 years of experience in the
industry, Johnny has a wealth of
expertise in horticulture and garden
centre retailing.
He joined Dobbies as a Director in
1988 and was appointed Operations
Director in 1994. In the past year
Johnny has focused on building and
developing the Operations
management team.
William Thomson CA
Non-executive Director (age 65)
William has a wealth of board
experience. He is Executive Chairman
of EG Thomson (Holdings) Ltd, 
Non-executive Chairman of John
Menzies plc, British Assets Trust plc and
Fidelity Japanese Values plc. James Barnes BA
Chief Executive
Sharon Brown FCMA
Finance Director 
David Barnes 
Non-executive Director 
Alex Hammond-Chambers MA
Chairman
Dobbies Garden Centres Plc Annual Report & Accounts 2005
He was appointed to the Dobbies Board
as a Non-executive Director in 1997. 
He is Chairman of the Audit Committee,
whose work is detailed within the Audit
Committee report. Through his
experience he has made a considerable
contribution to the development of the
Company’s risk control procedures and
financial management. His experience
and knowledge of accounting practices
are proving valuable as we have to 
deal with the consequences of the 
new accounting standards being
introduced by the International
Accounting Standards Board.
David Barnes 
Non-executive Director (age 75)
David has considerable experience in the
industry having joined Waterers in
1957, where he later became Managing
Director. He was formerly Chairman 
of the National Trust for Scotland
Enterprise Board and Convenor of the
Gardens Committee. He was awarded
the Scottish Horticultural Medal for
Service to Scottish Horticulture by the
Royal Caledonian Horticultural Society.
He joined Dobbies in 1968, became
owner in 1984 and retired from his
executive role in 1994. His long-term
experience of the garden centre
business generally and of horticulture in
particular, has been of great help in the
development of both existing and new
stores. During 2005 he visited many of
our centres and new prospective sites.
David will be retiring from the Board in
April 2006.
David Stevenson CA
Non-executive Director (age 64)
David has considerable retail and
property experience having developed
Edinburgh Woollen Mill Ltd from 
a small family business into a major
national chain. David holds
directorships in other retail and
property companies.
He was appointed Non-executive
Director in 1994. He is a member 
of the Development Committee, 
which involves visiting potential site
and garden centre acquisitions and
making recommendations to the Board.
His experience has been of enormous
help in merchandising (as we seek to
raise our sales per square foot), in
property matters (especially when siting
new centres) and in developing the
business generally. During the year 
he has continued to help and support
the development of the Company’s 
new centres.
Members and meeting attendance
Board Meetings (out of 10)
Alex Hammond-Chambers* 10
James Barnes 10
Sharon Brown 10
Johnny Trotter 10
David Barnes 10
William Thomson 9
David Stevenson 8
Audit Committee (out of 3)
William Thomson* 3
Alex Hammond-Chambers 3
Corporate Governance 
Committee (out of 1)
Alex Hammond-Chambers* 1
Sharon Brown 1
Remuneration Committee (out of 2)
Alex Hammond-Chambers* 2
William Thomson 2
David Stevenson 2
Nomination Committee (out of 1)
Alex Hammond-Chambers* 1
William Thomson 1
David Barnes 1
David Stevenson 1
*Chairman Dobbies Garden Centres Plc Annual Report & Accounts 2005
20
Directors’ Report
The Directors present their annual report
and the audited financial statements for the
year ended 31 October 2005.
Activity
The Group’s principal activity during the
year was the operation of garden centres.
A review of developments affecting the
Group during the year and its prospects 
for the future appears in the statements 
of the Chairman, Chief Executive and
Finance Director.
Results
The Group profit for the year after 
taxation amounted to £3,410,000 (2004: 
£3,765,000). The 2004 profit includes a
profit on sale of fixed assets of £479,000.
The Directors have paid an interim dividend
of £322,000 (3.20p per share) and propose
the payment of a final dividend of £652,000
(6.55p per share). 
Directors and their interests
The present membership of the Board is 
set out on page 18 and 19. The Directors in
office at 31 October 2005 and their
respective interests, as defined by the
Companies Act 1985, in the share capital of
the Company are shown below:
Since 31 October 2005, David Stevenson
has sold 60,000 shares, reducing his
holding to 107,750. Other than this there
has been no change in Directors’ interests
since 31 October 2005.
D D Stevenson is also a Director and
shareholder in Ashleybank Investments
Limited, which holds 132,500 shares in 
the Company.
Options granted to Directors are detailed 
in note 24 of the accounts.
Substantial shareholdings
On 31 January 2006 the Company was
aware of the following major holdings (other
than Directors’ holdings) of the issued
ordinary share capital of the Company in
accordance with s198 to s208 of the
Companies Act 1985.
Health and safety policy
The Directors place great importance 
on the safeguarding of the health, 
safety and security of all staff 
and visitors to the Company’s sites. 
There is a Risk Assessment Programme 
undertaken for the Company as a whole, 
and for all individual stores. These
assessments cover all identifiable risks from
the Group’s activities, including fire safety,
COSHH (Control Of Substances Hazardous 
to Health), manual handling, food hygiene 
and generic risks. Regular training is carried
out for existing staff, and health and safety
training forms part of the staff induction
programme for new employees. Key senior
managers have completed an IOSH (Institute
of Occupational Safety and Health) course
which gives a Certificate of Competence for
managing health and safety. In addition we
have increased the Head Office resource to
focus specifically on Health and Safety.
The Health and Safety performance is
reviewed by the Board at each Board 
meeting and the Board formally reviews 
the Policy annually. 
At 31 October 2005 At 31 October 2004
10p ordinary shares 10p ordinary shares
Number Number
R A Hammond-Chambers (Non-executive Chairman) 130,520 130,520
J D K Barnes (Non-executive Director) 110,000 110,000
T J K Barnes (Chief Executive) 670,000 670,000
J A H Trotter (Operations Director) 237,000 237,000
D D Stevenson (Non-executive Director) 167,750 167,750
W R E Thomson (Non-executive Director) 4,537 4,537
S M Brown (Finance Director) 7,500 2,500
Name of Shareholder Shareholding % Total
F&C Limited/F&C Asset Management 703,648 7.1%
Scottish Widows Investment Partnership 557,051 5.6%
Framlington Investment Management Limited 405,500 4.1% Lynne Mitchell MA (Hons), DipM
Marketing Executive 
Lynne joined the company in 1996 as 
a part-time sales assistant and continued 
to work with Dobbies while studying for 
her Honours degree at Edinburgh University.
She has gathered a vast experience of
customer relations which she now utilises in
driving our customer loyalty programme. 
Most recently, with the support of the
Company, Lynne achieved her CIM
Professional Diploma in Marketing.
21
Investing in our people
Environmental policy
The Directors of Dobbies Garden Centres
plc recognise that there are important
environmental issues associated with the
distribution and retailing of horticultural
products and the operation of a chain of
garden centres.
In order to manage these issues effectively
we are committed to progressively
developing a number of policies:
• Promoting plants and other products
which have associated environmental
benefits;
• Providing, where appropriate,
environmental information to our
customers in relation to the products
which we sell;
• Striving to use resources efficiently and to
prevent pollution in the construction and
operation of our garden centres;
• Meeting or exceeding those regulatory
requirements which relate to our activities,
such as the Duty of Care Waste
Management and the Packaging 
Waste regulations;
• Providing customers with information
about public transport options which 
serve our garden centres; and
• Supporting environmental initiatives 
which are relevant to horticulture.
We continually review our environmental
policy in order to further improve our
environmental performance. This year, by
way of examples: 
• We have replaced our carrier bags with a
new design manufactured from 70%
recycled material, and these in turn are
fully recyclable;
• We have joined with WRAP (the Waste &
Resources Action Programme) in their
Reusable Bag Campaign to encourage
customers to reuse bags instead of
disposing of them; 
• In line with previous developments, 
our new store at Stirling uses water
sourced on site;
• We have continued the theme of
horticulturally inspired visitor attractions at
Stirling, with the development of a maze,
wild flower meadows and the start of an
arboretum;
• Plans are advanced to install solar panels
at our new store in Cirencester.
Payment of suppliers
It is the Group’s payment policy with all
suppliers to settle outstanding accounts in
accordance with the terms and conditions
agreed when placing orders.
At 31 October 2005 the Company’s average
creditor payment period was 45 days
inclusive of deferred terms agreed with
suppliers (2004: 45 days).
Employee involvement
Within the bounds of commercial
confidentiality, staff at all levels are kept
informed of matters that affect the progress
of the Group and that are of interest to them
as employees. The Company maintains
regular communication with employees
through Consultative Meetings and monthly
team briefings.
The involvement of employees in the
performance of the Company is
encouraged through the employee share
option schemes (note 24).
Employment of disabled employees
Full and fair consideration is given to
applications for employment made by
disabled persons having regard to their
particular aptitudes and abilities.
Appropriate training is arranged for
disabled persons, including retraining 
for alternative work of employees who
become disabled, to promote their career
development with the organisation. 
Auditors
Deloitte & Touche LLP have expressed their
willingness to continue in office as auditors
and a resolution to re-appoint them will be
proposed at the forthcoming Annual
General Meeting.
Approved by the Board of Directors
and signed by order of the Board.
Sharon Brown
Secretary
6 February 2006 Dobbies Garden Centres Plc Annual Report & Accounts 2005
22
Corporate Governance Report
The meaning of Corporate governance: 
• Stewardship of shareholders’ interest;
• Enhancing shareholder value.
“Corporate governance”, as the phrase implies,
is the process by which a Board of Directors: 
1 looks after the shareholders’ interests 
(the stewardship of the Company); and 
2 enhances the value of those interests
(often referred to as “shareholder value”).
During 2003, the Financial Reporting
Council produced the new Combined Code,
which was then incorporated into the Listing
Rules for the shares of companies listed on
the Stock Exchange. It provides a template
for corporate governance procedures for
fully listed companies. A high proportion 
of the provisions of the Combined Code
address the governance of large
companies, which are, of necessity, rather
more bureaucratically run than smaller
companies and it recognises this by stating
that “Smaller listed companies, in particular
those new to listing, may judge that some 
of the provisions are disproportionate or
less relevant in their case.” The Code
recognises that smaller companies, and
particularly small companies, will have
different governance regimes. The Code
does not apply to AIM listed companies 
but we have decided to comply with
appropriate guidelines.
It is not the purpose of our report on
corporate governance to deal with each on
a line by line basis but rather to outline how
the governance of your Company is
conducted and to relate it to the major
principles in the new Combined Code. 
The Combined Code concentrates in
particular on those aspects of corporate
governance concerned with “1” – the
stewardship of shareholders’ interests – and
is focused on the role of the Non-executive
Directors in that respect. As a consequence
most of this Corporate Governance Report
also focuses on that role. However it should
be remembered that much of the Board’s
role of governing the Company concerns
“2” – enhancing Shareholder value through
the growth of the Company. Shareholders
should note that each of the Non-executive
Directors makes a considerable
commitment to the Company’s business
and progress outside Board meetings, 
a common requirement of Non-executive
Directors of smaller companies.
The Combined Code has been considered
by your Board of Directors and it has
concluded that most of the principles
contained therein are being followed. 
A Corporate Governance Manual has been
drawn up documenting the Board’s policies
concerning the provisions of the Combined
Code. As the Code suggests we should, 
we have in certain cases adopted our own
procedures and guidelines that are in
keeping with Dobbies Garden Centres
being a smaller company and that are
deemed to be in Shareholders’ best
interests. Significant differences are
explained in our report on the “comply or
explain” basis, which the Code encourages. 
We make the statement that we are
committed to the highest standards of
corporate governance – which we are – 
not because it is politically correct to do 
so but because we believe it to be in
Shareholders’ interest to govern the
Company in as excellent a way as possible.
We have a culture of excellence at Dobbies
in all that we do and that of course applies
to our corporate governance. 
If there are issues in the Combined Code
that are or are not covered by our report
that are of concern to any Shareholder, then
he/she is asked to contact the Chairman to
discuss them. Mike Dodd 
Buyer Core Gardening, Aquatics and Pets 
With over 19 years’ experience in the garden
centre retail industry and 14 years’ working
within key operational roles with Dobbies,
Mike has been General Manager of two of our
biggest garden centres including our flagship
store at Melville. He now utilises his in-depth
knowledge of products and sales as Buyer of
key product lines for the Group. 
23
Building on experience
The Board of Directors, 
its role:
Shareholders hold the Board of Directors
responsible for the stewardship of the
Company’s affairs, delegating authority 
to the Directors to govern and direct the
management of the Company on their 
behalf and holding them accountable for 
its performance. As suggested above, 
that involves both the role of monitoring 
the performance of management and the 
pro-active role of aiding and supporting
management in its job of growing the
Company’s business.
The Board of Directors, 
its composition:
In order to undertake this role it is necessary
that the Board is composed of persons
employed by the Company with executive
responsibilities (Executive Directors) and
other persons who are not employed by 
the Company but have relevant skills and
experience that can assist the Board in the
performance of its duties (Non-executive
Directors). It is important that a number of
the Non-executive Directors are also
regarded as independent of management
and that they hold influential positions so
that the Board can make decisions in
situations where the management may be
faced with conflicts of interest – most
importantly matters concerning Executive
Directors’ remuneration. It should be
remembered that the Directors as a whole
share collective responsibility for the 
affairs of the Company whether Executive 
or Non-executive.
The Board believes that it will be most
effective if it is not too large, has a balance
of Executive and Non-executive Directors 
on it, has at least three independent
Directors and all Directors are Shareholders.
The Board determines what skills and
experiences are required for it to do its 
job effectively and believes it has them. 
All Directors must also have certain board
room attributes, which allow them to
contribute to the performance of the Board
as a whole. Finally the Board believes that it
is important to have Directors who are
committed to the Company in spirit, through
a shareholding and through long service.
Continuity and experience are important
aspects of good stewardship, good
governance and independent behaviour,
and consequently the Board’s policy on
tenure of directorship does not include 
Non-executive Directors retiring after nine
years. However the Board also believes that
it is important to refresh the Board and 
bring on new Directors from time to time.
The Board has decided that each Director
should stand for re-election each year. 
As noted in the Chairman’s statement,
David Barnes will not be seeking re-election
as a Director this year and it is anticipated
that a new Non-executive and independent
Director will be appointed to replace him.
The Board consists of seven Directors, the
Non-executive Chairman (Alex Hammond-
Chambers), three Executive Directors – 
the Chief Executive (James Barnes), the
Operations Director (Johnny Trotter) and 
the Finance Director (Sharon Brown) – 
and three other Non-executive Directors,
David Barnes, David Stevenson and 
William Thomson. Each year the
independence of each Director is assessed,
taking into consideration the character,
competence, performance and conflicts of
interest of each individual. Following this
review, the Board, has determined that Alex
Hammond-Chambers, David Stevenson and
William Thomson are independent Directors
and, because the Board is small, it is
satisfied that it is not necessary to nominate
a senior independent Director. Dobbies Garden Centres Plc Annual Report & Accounts 2005
24
Corporate Governance Report (continued)
The Board of Directors, 
its performance evaluation:
The end objective of the annual evaluation
of the governance of the Board of Directors
is improved performance of the Company:
the pursuit of excellence. The evaluation
focuses on developing its governance so 
as to achieve significant improvements in
the performance of Dobbies Garden
Centres in relation to its customers, to its
employees, to its community and thence to
its Shareholders. The Board believes that
the Company’s performance in these areas
is the ultimate test of its own effectiveness
and thence performance.
The process of evaluation consists of 
written assessments and recommendations
of the Board’s governance with respect 
to certain identified issues and goals, 
taking into consideration the roles and
performance of the Board as a whole, 
its Committees and individual Directors. 
It also addresses the issue of the
independence and independent behaviour
of the Non-executive Directors.
Recommendations are discussed and,
where considered appropriate, adopted.
The Board of Directors, 
its functions:
The Board of Directors has certain
functions and decisions that are reserved
for it. It is active in fulfilling all aspects 
of its responsibilities, including overall
corporate and financial strategy,
management structure and acquisition 
and divestment policy. 
It has a schedule of ten Board Meetings
during the course of the year, each of 
which has a general agenda common to 
all and then also a particular subject matter 
for review for that meeting; these typically
include reviewing the year’s and the 
half-year’s results, forthcoming budgets,
capital expenditure, management and
personnel, merchandising, marketing,
property, environment, health and safety,
corporate governance issues, Shareholder
relations, etc. The Board has an annual
strategic review when it meets somewhere
other than at the Company’s offices to visit
other garden centres and to consider the
Company’s long-term goals and prospects.
Certain of the Board’s other functions are
delegated to one of its five Committees,
including the monitoring of the Company’s
risks and controls and the determination 
of the Directors’ remuneration, which 
are enlarged upon below. It should be
emphasised that the Board reviews the
work, performance, findings and decisions
of all Committees and takes responsibility
for them.
The Board of Directors, 
its Standing Committees:
Much of the detailed and technical work
that is required of the Board of Directors is
delegated to five Committees – Audit,
Remuneration, Nomination, Development
and Corporate Governance. 
The role and the work of the Audit
Committee is reported upon in the 
Audit Committee Report. The report of the
Remuneration Committee forms part 
of the Remuneration Report. 
The Nomination Committee consists of 
Alex Hammond-Chambers (Chairman),
William Thomson, David Barnes and 
David Stevenson. This Committee is
responsible for evaluating the skills and
experience required by the Board 
and recommending the appointment and 
re-election of Directors. The Committee
meets annually or more frequently 
if required. 
The Corporate Governance Committee
keeps the Board’s corporate governance
under review. It has met during the year to
review the Board’s Corporate Governance
Manual and this Corporate Governance
Report to Shareholders. Its members are 
Alex Hammond-Chambers (Chairman) 
and Sharon Brown (Finance Director and
Company Secretary). 
The Development Committee, consisting 
of James Barnes (Chairman), David
Stevenson and David Barnes, works on 
an ad-hoc basis to consider development
opportunities for the Company so that, 
once they are presented to the Board, 
they have already been subject to review
and evaluation.  John Leighton 
Merchandiser 
Core Gardening, Aquatics and Pets 
With over 20 years’ experience in
merchandising roles with Tesco and Edinburgh
Woollen Mill, John recently joined Dobbies 
as Merchandiser for Core Gardening, 
Aquatics & Pets. He brings with him a 
broad retail background and strong analytical
skills. His experience covering stock
management, margin control and trading 
will contribute to sales and margin growth
and wastage reduction.
25
Expanding our knowledge
Shareholder relations, 
Investor relations:
The Chief Executive, James Barnes, and
the Finance Director, Sharon Brown, handle 
the investor relations programme of the
Company. In addition to fielding visits and
telephone calls from Shareholders, City
analysts and the media, they make visits to
Institutional Shareholders, investment
bankers and stockbrokers in the days
immediately following the release of the
annual and half-year results. However, it is
incumbent on the Board of Directors that
our annual report, our half-year statement,
our news releases and our web site should
be as informative as possible, so that
individual Shareholders, who constitute the
majority of our Shareholder base, should
also be well informed.
The Chairman also makes himself available
to see or speak to any Shareholder and
visits Institutional Shareholders as required.
In particular, he concerns himself with
corporate governance issues.
Once a year, representatives from Bell
Lawrie White, the Company’s Nominated
Brokers, attend a Board Meeting at which
they present a report on the Company from
the perspective of institutions involved in the
market, including Shareholders, investors
generally and analysts. 
Shareholder relations, 
the Annual General Meeting:
The Annual General Meeting is the pivotal
point in the relationship between the Board
of Directors and Shareholders and is the
occasion when the Board accounts for itself
in public meeting. It provides Shareholders
with the opportunity to meet, ask questions
of and make comments to the Board of
Directors as well as to vote on certain
issues specifically reserved for their
approval, including the accounts, the
election of Directors, the appointment of 
the auditors, the Remuneration Report and 
the issue of new shares. It is important that
as many Shareholders as possible attend
the AGM, including Institutional
Shareholders, because it gives them the
chance to meet all of the Directors – and 
in particular any new Non-executive
Director (the Combined Code specifically
encourages this); the Directors lay particular
emphasis on Shareholders attending the
Company’s AGM as it is an important part
of Shareholder democracy.
Alex Hammond-Chambers, 
Chairman
For and on behalf of the Board 26
Directors’ Remuneration Report
As an AIM listed company, Dobbies is 
not required to report on Directors’
remuneration. However, we have chosen 
to report on those aspects which we think
will inform our Shareholders.
The Remuneration Committee
The Board of Directors has formed a
Remuneration Committee to act on 
behalf of the Board on matters concerning
all aspects of the remuneration of the
Directors of the Company. The members 
of the Remuneration Committee are 
Alex Hammond-Chambers (Chairman of
the Committee), David Stevenson and
William Thomson, all being Non-executive
and independent Directors of the
Company. The Committee has drawn 
up terms of reference which determine 
its duties. 
The structure of the remuneration of the
Directors is reviewed each year by the
Committee, which recommends the basis 
of remuneration for the Directors for the
coming year. In doing so it also takes into
account the guidelines contained in the
new Combined Code. 
It should be stressed that no Director is
involved in the review of his/her own
remuneration.
Remuneration Policy
The premise behind the Board of Directors’
policy on remuneration is that the
Company wishes to employ the best
people for the job. The levels of
remuneration are expected to compensate
(i) the Executive Directors for their abilities,
hard work, contribution and commitment to
the Company and its performance and 
(ii) the Non-executive Directors for their
diligence, contribution and commitment.
Included in the remuneration is recognition
for all Directors of the responsibilities 
and potential liabilities, both financial and
reputational, that go with being the Director
of a public company.
It is the policy of the Board that part of the
overall remuneration of the Executive
Directors should vary in accordance with
the year’s results. An element of the salary
is “performance related”, with performance
being judged against an earnings per
share target, and the payment varied in
line with results compared to target. 
It is the policy of the Board of Directors
that, as part of their Remuneration
structure, Executive Directors and other
Management Board Directors should be
provided with the opportunity to acquire
and hold shares in the Company, thereby
aligning their interests with those of
Shareholders. The Board has been
concerned about the dilutionary
inefficiency of Stock Option Schemes 
(and particularly Unapproved Schemes)
and about the tendency of some to sell all
their shares upon exercise – turning the
scheme into an expensive way of financing
a cash bonus. The Board, through the
work of the Remuneration Committee, is
proposing a new set of incentive schemes
designed to achieve the goals stated
above. These are outlined in detail in the
Shareholders AGM notice.
The Remuneration Committee is
undertaking a review of other aspects of
the remuneration structure of the Executive
Directors and expects to complete this
during the course of the current year. 
The Non-executive Directors do not have
service contracts, do not participate in any
share option schemes and do not receive
any compensation upon termination of
their directorships. Their fees are based
partly on being a Director of the Company
and partly in respect of their work done as
members of any of the Board’s working
Committees. In general, extra fees are not
paid for extra work, it being regarded as
part of the duties of being a Director.
Dobbies Garden Centres Plc Annual Report & Accounts 2005
Performance Graph
Fully listed companies 
are now required under
the Companies Act to
publish, in the Directors’
Remuneration Report, 
a line graph which
compares the total
Shareholder return 
with a suitable equity
index. The performance
chart shown here
illustrates the Company’s
total return compared 
with the performance of
the FTSE All Share Index
over the past five years.
60
70
80
90
100
110
120
130
140
150
160
2005 2004 2003 2002 2001
FTSE Dobbies Paul Stirling 
General Manager 
Dobbies Garden World Ayr
Paul has gained over 10 years’ retail
experience previously, working with
companies such as Homebase, Focus and 
W H Smith and joined us in 2004 as the
General Manager at our 42,000 sq. ft store 
in Ayr. He brought a host of key skills to the
position, including a strong retail focus and
sound management skills. 
27
Focusing on future growth
The benefits for the Executive Directors
include the Company’s contributions to 
the pension schemes. The number of
Directors accruing benefits under the
defined benefit pension scheme was 3
(2004: 3). The increase in accrued benefit
from the scheme for T J K Barnes, the
highest paid Director, was £1,800 at 
the year end to £19,125. Total Company
contributions paid during the year for 
T J K Barnes amounted to £8,473 and 
a further £7,679 was accrued. 
During the year S M Brown exercised an
option under the Approved Employee Share
Option Scheme for 12,500 shares,
generating a gain of £39,125. In addition
she made a gain of £1,311 on the exercise
of an option for 1,619 shares under the
Employee Sharesave Scheme.
Service Agreements
The three Executive Directors each have
one year Service Agreements, which
provide for salary, car, BUPA membership
and pension payments.
Performance
Fixed related 2005 2004
salary salary Benefits total total
£££££
Executive Directors
T J K Barnes 162,000 5,400 30,202 197,602 195,424
J A H Trotter 111,500 2,550 25,369 139,419 135,612
S M Brown 107,000 2,400 21,667 131,067 124,430
Basic Committee 2005 2004
fees fees Benefits total total
£££££
Non-executive Directors
R A Hammond-Chambers 30,000 9,250 — 39,250 39,250
J D K Barnes 15,000 2,750 — 17,750 17,750
D D Stevenson 15,000 5,750 — 20,750 20,750
W R E Thomson 15,000 6,250 — 21,250 21,250
Total 455,500 34,350 77,238 567,088 554,466
Directors’ Remuneration
The audited remuneration of the Directors for the past year was:
Alex Hammond-Chambers, 
Chairman
For and on behalf of the Board Dobbies Garden Centres Plc Annual Report & Accounts 2005
28
Audit Committee Report
Audit Committee
The Audit Committee met on three
occasions during the year ended 
31 October 2005 and consists of two 
Non-executive Directors, William Thomson
(Chairman of the Committee) and Alex
Hammond-Chambers. Both William 
(a Chartered Accountant) and Alex have
recent and relevant financial experience.
The Committee has written terms of
reference, which includes the review of
internal control procedures and risk
assessment, the scope of the audit, the
half-year and full year accounts and 
issues arising from the audit. It also 
makes recommendations on the
appointment of the external auditors, 
the fees payable to the auditors for audit
work and reports to the Board in respect 
of non-audit services carried out by the
auditors. In considering all the above, 
the Committee has due regard to the 
cost effectiveness, independence and
objectivity of the audit function.
The Board has overall responsibility for
internal controls, which are monitored
through the Audit Committee, which in turn
reviews their effectiveness on an ongoing
basis. There are inherent limitations in 
any system of internal control which can
provide only reasonable, and not absolute,
assurance with respect to the preparation
of financial information and the
safeguarding of assets.
The key features of the internal control
system that operated throughout the period
covered by the accounts are:
• A control environment based on a 
clearly defined organisation structure,
delegation of authority with accountability
and a professional approach to 
financial reporting;
• The identification and evaluation of
business risk and control objectives and
the establishment of priorities for the
allocation of resources;
• The operation of control procedures
covering financial transactions, 
verification and reconciliation procedures,
commitment and authorisation limits, 
asset recording and protection and
treasury policy; and
• A monitoring process, particularly 
through the budget, forecast review and
trading reporting processes, which
highlights the key business performance
indicators and risks, and significant
variances from expectations.
Specific responsibilities and procedures have
been defined for the reporting and monitoring
of key risk factors in the following areas:
• Insurance risks
• Health and safety
• Capital expenditure and development
• Operational risks
• Future profits risks
• Financial controls
• Human resources
• IT risks
These key risk areas are discussed by the
Chief Executive with relevant departmental
heads on a regular basis, and the Chief
Executive in turn reports to the Board.
Procedures exist to formalise documentation
regarding the review and the sign-off of
detailed risk management reports.
The Audit Committee and the Board review
the key risk areas each year to ensure as far
as possible that the controls are being
operated in line with the established
procedures. On an ongoing basis, steps 
are taken to deal with areas of improvement
which come to management’s and the
Board’s attention.
The Directors do not believe the size of the
Company warrants an internal audit function.
William Thomson
For and on behalf of the Board Pauline MacAskill 
General Manager
Dobbies Garden World Perth
Pauline has been with Dobbies for 13 years
and started her career as a part-time seasonal
sales assistant at our Perth store. She then
progressed into several key roles including
Plant Manager and Assistant Manager, most
recently having been appointed as General
Manager at Perth. 
Pauline has developed a number of key skills
throughout her time at Dobbies, including
horticultural expertise, customer relations and
excellent people management. 
29
Statement of Directors’ Responsibilities
Committed to service
United Kingdom 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 the Group as at the end of
the financial year 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; and
• state whether applicable accounting
standards have been followed.
The Directors are responsible for keeping
proper accounting records which disclose
with reasonable accuracy at any time the
financial position of the Company and to
enable them to ensure that the financial
statements comply with the Companies Act
1985. They are also responsible for the
system of internal control, for safeguarding
the assets of the Company and hence 
for taking reasonable steps for the
prevention and detection of fraud and 
other irregularities.
Going Concern Statement
After making enquiries, the Directors have
formed a judgement, at the time of
approving the financial statements, that
there is reasonable expectation that the
Group has adequate resources to continue
in operational existence for the foreseeable
future. For this reason, the Directors
continue to adopt the going concern basis
in preparing the financial statements.  Dobbies Garden Centres Plc Annual Report & Accounts 2005
30
Independent Auditors’ Report to the Members of Dobbies Garden Centre plc
We have audited the financial statements
of Dobbies Garden Centres plc for the
year ended 31 October 2005 which
comprise the consolidated profit and loss
account, the balance sheets of the Group
and the Company, the consolidated cash
flow statement and the related notes 1 to
27, together with the reconciliation of 
net cash flow to movement in net debt.
These financial statements have been
prepared under 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
As described in the Statement of Directors’
Responsibilities, the Company’s Directors
are responsible for the preparation of the
financial statements in accordance with
applicable United Kingdom law and
accounting standards. They are also
responsible for the preparation of the other
information contained in the Annual
Report. Our responsibility is to audit the
financial statements in accordance with
relevant United Kingdom legal and
regulatory requirements and auditing
standards.
We report our opinion as to whether the
financial statements give a true and 
fair view and have been properly prepared
in accordance with the Companies Act
1985. We also report if, in our opinion, the
Directors’ Report is not consistent with the
financial statements, if the Company has
not kept proper accounting records, if we
have not received all the information and
explanations we require for our audit, or if
information specified by law regarding
Directors’ remuneration and transactions
with the Company and other members of
the Group is not disclosed.
We read the Directors’ Report and the 
other information contained in the 
Annual Report for the above year as
described in the contents section and
consider the implications for our report 
if we become aware of any apparent
misstatements or material inconsistencies
with the financial statements.
Basis of audit opinion
We conducted our audit in accordance
with United Kingdom auditing standards
issued by the Auditing Practices Board. 
An audit includes examination, on a test
basis, of evidence relevant to the amounts
and disclosures in the financial statements.
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 circumstances of the Company 
and the Group, 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 of the state of affairs of 
the Company and the Group as at 
31 October 2005 and of the profit of the
Group for the year then ended; and
• the financial statements have been
properly prepared in accordance with
the Companies Act 1985.
Deloitte & Touche LLP
Chartered Accountants and Registered
Auditors
Edinburgh
20 February 2006 31
2005 Accounts
Contents
Consolidated Profit and Loss Account 32
Consolidated Balance Sheet 33
Company Balance Sheet 34
Consolidated Cash Flow Statement 35
Notes to the Accounts 36
Officers and Professional Advisers 55
Dobbies Locations 56 Dobbies Garden Centres Plc Annual Report & Accounts 2005
32
Consolidated Profit and Loss Account Year ended 31 October 2005
2005 2004
Note £’000 £’000
Turnover: continuing operations 2 60,620 54,066
Cost of sales (31,198) (28,628)
Gross profit 29,422 25,438
Operating expenses 2 (23,912) (20,338)
Other operating income 4 1,558 1,132
Operating profit: continuing operations 7,068 6,232
Profit on sale of tangible fixed assets 4 — 479
Profit on ordinary activities before interest 7,068 6,711
Interest payable and similar charges 5 (2,115) (1,489)
Profit on ordinary activities before taxation 4 4,953 5,222
Tax on profit on ordinary activities 6 (1,543) (1,457)
Profit on ordinary activities after taxation 3,410 3,765
Equity dividends paid and proposed 7 (974) (879)
Retained profit for the year transferred to reserves 19 2,436 2,886
Earnings per Share
Basic Earnings per Share 23 34.3p 38.1p
Adjustment for profit on sale of fixed assets — (4.8p)
Adjusted Basic Earnings per Share 34.3p 33.3p
Diluted Earnings per Share 23 34.0p 37.8p
Adjustment for profit on sale of fixed assets — (4.8p)
Adjusted Diluted Earnings per Share 34.0p 33.0p
There are no recognised gains and losses for the years ending 31 October 2005 and 31 October 2004 other than the profit of
£3,410,000 (2004: profit of £3,765,000) shown above. Accordingly no Statement of Total Recognised Gains and Losses is shown. 
All Group operations relate to continuing activities. 33
Consolidated Balance Sheet 31 October 2005
2005 2004
Note £’000 £’000
Fixed assets 
Intangible assets 8 573 614
Tangible assets 9 88,314 69,409
88,887 70,023
Current assets
Stocks 11 8,630 8,339
Debtors 12 1,952 995
Cash at bank and in hand 519 449
11,101 9,783
Creditors: amounts falling due within one year 13 (17,719) (16,078)
Net current liabilities (6,618) (6,295)
Total assets less current liabilities 82,269 63,728
Creditors: amounts falling due after more than one year 14 (39,884) (24,946)
Provisions for liabilities and charges 16 (2,577) (1,608)
Net assets 39,808 37,174
Capital and reserves
Called up share capital 17 996 990
Share premium account 19 21,318 21,126
Profit and loss account 19 17,494 15,058
Equity Shareholders’ funds 20 39,808 37,174
These financial statements were approved by the Board of Directors on 6 February 2006.
Signed on behalf of the Board of Directors
Alex Hammond-Chambers
Director
Sharon Brown
Director Dobbies Garden Centres Plc Annual Report & Accounts 2005
34
Company Balance Sheet 31 October 2005
2005 2004
Note £’000 £’000
Fixed assets
Investments 10 13 13
Intangible assets 8 573 614
Tangible assets 9 88,222 69,325
88,808 69,952
Current assets
Stocks 11 8,591 8,286
Debtors 12 1,965 1,008
Cash at bank and in hand 230 198
10,786 9,492
Creditors: amounts falling due within one year 13 (17,711) (16,067)
Net current liabilities (6,925) (6,575)
Total assets less current liabilities 81,883 63,377
Creditors: amounts falling due after more than one year 14 (40,067) (25,129)
Provisions for liabilities and charges 16 (2,572) (1,603)
Net assets 39,244 36,645
Capital reserves
Called up share capital 17 996 990
Share premium account 19 21,318 21,126
Profit and loss account 19 16,930 14,529
Equity Shareholders’ funds 20 39,244 36,645
These financial statements were approved by the Board of Directors on 6 February 2006.
Signed on behalf of the Board of Directors
Alex Hammond-Chambers
Director
Sharon Brown
Director 35
Consolidated Cash Flow Statement Year ended 31 October 2005
2005 2004
Note £’000 £’000
Net cash inflow from operating activities 25 9,813 9,814
Returns on investments and servicing of finance 26 (2,353) (1,593)
Taxation 26 (1,263) (1,032)
Capital expenditure and financial investment 26 (22,027) (12,814)
Equity dividends paid (911) (1,084)
Net cash outflow before financing (16,741) (6,709)
Financing 26 15,118 5,046
Decrease in cash in the year (1,623) (1,663)
Reconciliation of Net Cash Flow to Movement in Net Debt
2005 2004
£’000 £’000
Decrease in cash in the year (1,623) (1,663)
Cash inflow from increase in debt and hire purchase (14,920) (4,941)
Movement in net debt in the year (16,543) (6,604)
Net debt at 1 November 2004 (30,938) (24,334)
Net debt at 31 October 2005 27 (47,481) (30,938) Dobbies Garden Centres Plc Annual Report & Accounts 2005
36
Notes to the Accounts
1 Accounting policies
The principal accounting policies are summarised below. All accounting policies have been applied consistently throughout the year
and the preceding year. 
Basis of accounting
The financial statements have been prepared under the historical cost convention and in accordance with applicable UK accounting
standards.
Basis of consolidation
The consolidated financial statements incorporate the accounts of the Company and its subsidiaries for the year ended 31 October 2005.
Acquisitions and disposals
On the acquisition of a business, fair values are attributed to the Group’s share of net separable assets. Where the cost of acquisition
exceeds the fair value attributable to such net assets the difference is treated as purchased goodwill and is capitalised in the Group
balance sheet in the year of acquisition.
The profit or loss on the disposal or closure of a previously acquired business includes the amount attributable to any purchased
goodwill relating to that business not previously charged through the profit and loss account.
The results and cash flows relating to a business are included in the consolidated profit and loss account and the consolidated cash
flow statement from the date of acquisition or up to the date of disposal.
Goodwill and intangible fixed assets
Goodwill arising on acquisition of a business is capitalised in the year in which it arises and amortised over its estimated useful life up
to a maximum of 20 years. Capitalised purchased goodwill in respect of subsidiaries is included within intangible fixed assets. 
Tangible fixed assets
Tangible fixed assets are stated at original cost less depreciation. Depreciation is provided on all tangible fixed assets (other than
freehold land) at rates calculated to write off their cost less estimated residual value over their expected useful life as follows:
Freehold buildings Over 30 to 50 years on cost less residual value
Leasehold buildings Over the term of the lease
Mechanical and electrical installations Over 15 years
Fixtures and fittings 15% on cost
Computer equipment and software 20% to 33
1
⁄ 3% on cost
Motor vehicles and tractors 25% on cost
The estimated residual values of assets are determined by the Directors by reference to the ongoing review of the condition of assets
and consideration of other factors relevant to market residual values excluding inflation. The Group considers impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss would be recognised
when the recoverable amount of an asset is less than its carrying amount. 
Assets in the course of construction are not depreciated until the asset becomes operational.
Investments
Investments held as fixed assets are stated at cost less provision for any impairment, if appropriate. 37
Stocks
Stocks have been valued at the lower of cost and net realisable value. Net realisable value is based on estimated selling price. 
Cost represents the purchase price of stock. Where necessary, provision is made for obsolete, slow moving and defective stocks.
Taxation
Current tax, including UK corporation tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that
have been enacted or substantively enacted by the balance sheet date. 
Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or a right
to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences
arise from the inclusion of items and income and expenditure in taxation computations in periods different from those in which they
are included in financial statements. Deferred tax assets are recognised to the extent that it is regarded more likely than not that they
will be recovered. Deferred tax assets and liabilities are not discounted.
Leasing and hire purchase
Assets held under finance leases and hire purchase contracts and the related obligations are recorded in the balance sheet at the fair
value of the assets at the inception of the agreements. The excess of payments over the recorded obligations are treated as finance
charges which are amortised over each agreement term to give a constant rate of charge on the remaining balance of the obligation.
Rental costs under operating leases are charged to the profit and loss account in equal annual amounts over the periods of the leases.
Interest
Interest payable is charged as incurred except where the borrowing finances tangible fixed assets in the course of development. 
Such interest costs are capitalised from the start of the project to the commencement of trading.
Pension costs
The Group operates three pension schemes. 
There are two defined contribution schemes. Contributions to the schemes are charged to the profit and loss account as they 
become payable.
The defined benefits pension scheme is a fully insured scheme for employees. It is valued every three years by a professionally qualified
independent actuary. The regular cost of providing pension benefits and any variations from regular cost arising from the actuarial
valuation are charged to the profit and loss account over the expected remaining service lives of current employees. Any difference
between the charge to the profit and loss account and the actual contributions to the scheme is included as an asset or liability in the
balance sheet.
Financial instruments
The only derivative financial instruments used by the Group are interest rate swaps. These instruments are held to manage the interest
rate exposure on borrowings.
Interest differentials on derivative instruments are recognised by adjusting net interest payable over the periods of the contracts. Dobbies Garden Centres Plc Annual Report & Accounts 2005
38
Notes to the Accounts (continued)
2 Analysis of turnover, operating profit and net assets
Turnover represents the invoiced amount of goods sold and services provided, and is stated net of value added tax. Analyses by class of
business of turnover, operating profit and net assets are stated below:
2005 2004
£’000 £’000
Turnover
Garden centres 60,234 53,660
Tourism 386 406
60,620 54,066
Operating profit
Garden centres 7,043 6,208
Tourism 25 24
7,068 6,232
Net assets
Garden centres 39,253 36,653
Tourism 555 521
39,808 37,174
All of the Group turnover and operating profit in each year was generated in the UK. Operating expenses are classified as follows:
2005 2004
£’000 £’000
Distribution costs 21,808 18,599
Administration costs 2,104 1,739
23,912 20,338
In the 2004 accounts, all operating expenses were classified as administrative expenses.
3 Information regarding directors and employees
Directors’ emoluments
2005 2004
£’000 £’000
Fees 99 99
Other emoluments 430 420
Pension contributions 38 49
Gains on exercise of share options 40 —
607 568
Company contribution to Money Purchase schemes in relation to Directors’ pensions 22 35
Details of Directors’ remuneration and pensions, required by the Companies Act 1985, including that of the highest paid Director, 
are set out in the Directors’ remuneration schedule within the Directors’ Remuneration Report and form part of these audited 
financial statements. 
The 2004 figures for Directors’ emoluments above include £13,504 which was accrued in relation to prior years’ pension rights. 39
Average number of persons employed (including Directors)
2005 2004
No. No.
Office and management 210 174
Other employees 1,289 1,063
1,499 1,237
Staff costs during the year (including Directors)
2005 2004
£’000 £’000
Wages and salaries 12,306 10,227
Social security costs 838 733
Pension costs 155 144
13,299 11,104
4 Profit on ordinary activities before taxation
2005 2004
£’000 £’000
Profit on ordinary activities before taxation is stated after charging/(crediting):
Other operating income (1,558) (1,132)
Auditors’ remuneration (including Company audit fee of £42,000 (2004: £38,000)) 44 40
Other fees paid to auditors 13 17
Depreciation 
Owned assets 2,636 2,170
Leased assets 32 58
Goodwill amortisation 41 41
Rentals under operating leases
Hire of plant and machinery 34 28
Other operating leases 179 243
Gain on sale of fixed assets — (479)
Other operating income relates largely to income from on-site concessions. 
The other fees paid to auditors relate primarily to taxation services. 
During 2004 the Group disposed of a freehold site near Shrewsbury, generating a gain of £479,000. Dobbies Garden Centres Plc Annual Report & Accounts 2005
40
Notes to the Accounts (continued)
5 Interest payable and similar charges
2005 2004
£’000 £’000
Bank loans, overdrafts and other loans 2,353 1,593
Interest capitalised on fixed asset developments (note 9) (238) (104)
2,115 1,489
6 Tax on profit on ordinary activities
2005 2004
£’000 £’000
Current taxation
UK corporation tax charge for the year 872 1,130
Adjustment in respect of prior years (298) 9
Total current tax 574 1,139
Deferred taxation
Origination and reversal of timing differences 678 271
Adjustment in respect of prior years 291 47
Total deferred taxation 969 318
Tax on profit on ordinary activities 1,543 1,457
The above is net of tax relief attributable to capitalised interest of £71,400 (2004: £31,200).
The standard rate of tax for the year, based on the UK standard rate of corporation tax, is 30% (2004: 30%). The actual tax charge for
the current and previous year differs from the standard rate for the reasons set out in the following reconciliation.
2005 2004
£’000 £’000
Profit on ordinary activities before tax 4,953 5,222
Tax charge on profit on ordinary activities at standard rate 1,486 1,567
Factors affecting the charge for the year:
Capital allowances in excess of depreciation (768) (285)
Expenses not deductible for tax purposes 111 15
Gain covered by rollover relief — (139)
Other deferred tax movements – provisions 85 (22)
Depreciation on capitalised revenue expenditure (2) (2)
Deduction for share options exercised (35) —
Rate difference (5) (4)
Adjustments to tax in respect of prior periods (298) 9
Total current tax 574 1,139 41
7 Dividends
2005 2004
£’000 £’000
Interim dividend – 3.20p per ordinary share (2004: 2.91p) 322 290
Final proposed – 6.55p per ordinary share (2004: 5.95p) 652 589
974 879
8 Intangible assets
Goodwill
Group and Company £’000
Cost
At 1 November 2004 and 31 October 2005 785
Amortisation
At 1 November 2004 171
Charge for the year 41
At 31 October 2005 212
Net book value
At 31 October 2005 573
At 31 October 2004 614 Dobbies Garden Centres Plc Annual Report & Accounts 2005
42
Notes to the Accounts (continued)
9 Tangible fixed assets
Freehold Leasehold Fixtures Assets In 
Land and Land and and Motor Course of 
Buildings Buildings Fittings Vehicles Construction Total
Group £’000 £’000 £’000 £’000 £’000 £’000
Cost
At 1 November 2004 54,170 3,932 14,523 611 4,242 77,478
Reclassification 5,328 (1,086) — — (4,242) —
Additions 12,191 5 3,491 157 5,729 21,573
Disposals — — (1) (81) — (82)
At 31 October 2005 71,689 2,851 18,013 687 5,729 98,969
Accumulated depreciation
At 1 November 2004 846 317 6,583 323 — 8,069
Reclassification 112 (112) ————
Charge for the year 252 32 2,270 114 — 2,668
Disposals — — (1) (81) — (82)
At 31 October 2005 1,210 237 8,852 356 — 10,655
Net book value
At 31 October 2005 70,479 2,614 9,161 331 5,729 88,314
At 31 October 2004 53,324 3,615 7,940 288 4,242 69,409
Freehold Leasehold Fixtures Assets In 
Land and Land and and Motor Course of 
Buildings Buildings Fittings Vehicles Construction Total
Company £’000 £’000 £’000 £’000 £’000 £’000
Cost
At 1 November 2004 54,104 3,932 14,425 611 4,242 77,314
Reclassification 5,328 (1,086) — — (4,242) —
Additions 12,178 5 3,489 157 5,729 21,558
Disposals —— (1) (81) — (82)
At 31 October 2005 71,610 2,851 17,913 687 5,729 98,790
Accumulated depreciation
At 1 November 2004 835 317 6,514 323 — 7,989
Reclassification 112 (112) ————
Charge for the year 251 32 2,264 114 — 2,661
Disposals — — (1) (81) — (82)
At 31 October 2005 1,198 237 8,777 356 — 10,568
Net book value
At 31 October 2005 70,412 2,614 9,136 331 5,729 88,222
At 31 October 2004 53,269 3,615 7,911 288 4,242 69,325
Included within Group and Company leasehold land and buildings above is a net book value of £2,503,000 (2004: £2,513,000) relating to
long leasehold properties. The net book value of assets held under hire purchase contracts at 31 October 2005 is £6,000 (2004: £6,000).
The amount of interest after depreciation included in the cost of Group and Company assets was £648,000 (2004: £410,000). 
Interest has been capitalised at the rate incurred on the borrowings. 43
10 Investments held
Shares in 
Subsidiaries
Company £’000
At 1 November 2004 and 31 October 2005 13
The Company’s principal subsidiary is Edinburgh Butterfly Farm Limited, a tourist attraction registered in Scotland.
11 Stocks
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Finished goods and goods for resale 8,630 8,339 8,591 8,286
12 Debtors
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Trade debtors 673 550 680 565
Prepayments and accrued income 254 171 253 171
Other debtors 828 274 826 272
Corporation tax debtor 197 — 206 —
1,952 995 1,965 1,008
13 Creditors: Amounts falling due within one year
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Loan notes 193 211 193 211
Bank overdraft 7,917 6,224 7,917 6,224
Trade creditors 5,975 6,547 5,976 6,555
Other taxes and social security 853 432 841 418
Accruals and deferred income 1,082 1,051 1,080 1,050
Proposed dividends 652 589 652 589
Hire purchase creditors 6 6 6 6
Other creditors 1,041 526 1,046 531
Corporation tax — 492 — 483
17,719 16,078 17,711 16,067
The bank overdraft is secured by a bond and floating charge over the assets of the Group. The bank holds fixed charges over certain of
the properties. Dobbies Garden Centres Plc Annual Report & Accounts 2005
44
Notes to the Accounts (continued)
14 Creditors: Amounts falling due after more than one year
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Term loan (note 15) 39,884 24,946 39,884 24,946
Amounts due to subsidiary company — — 183 183
39,884 24,946 40,067 25,129
The amount due to a subsidiary company represents a loan from Edinburgh Butterfly Farm Limited, which bears interest at a rate of
10% per annum. There are no fixed repayment terms.
The term loan is secured by a bond and floating charge over the assets of the Group. 
15 Financial instruments
The purpose of financial instruments is to raise finance for the Group’s operations and, in the case of the interest rate swaps
entered into in the years ended 31 October 2002 and 31 October 2003, to hedge against potential variation in the related finance
cost. The Group does not trade in financial instruments or hold derivative instruments or any assets or liabilities denominated in
foreign currencies.
The Group finances its operations by bank borrowings. The Group borrows at both fixed and floating rates of interest to generate
the desired interest profile and to manage the Group’s exposure to interest rate fluctuations.
Short-term debtors and creditors have been omitted from all disclosures given below.
Maturity profile of financial liabilities 
Bank Bank 
borrowings 2005borrowings 2004
and loans Other Total and loans Other Total
£’000 £’000 £’000 £’000 £’000 £’000
Within one year or less or
On demand 8,110 6 8,116 6,435 6 6,441
Over five years 40,000 — 40,000 25,000 — 25,000
Unamortised arrangement fees (116) — (116) (54) — (54)
47,994 6 48,000 31,381 6 31,387
In the maturity analysis of the Group’s financial liabilities “Other” includes liabilities shown as hire purchase creditors in Note 13.
Assets held under hire purchase contracts are secured on the related assets. 
The Group has various undrawn committed borrowing facilities. During the year the borrowing facility was re-negotiated to 
£70 million, of which £48 million was drawn down immediately. The undrawn committed facilities at 31 October 2005 amounted 
to £22 million (2004: £19 million).  45
Interest rate profile
Floating Fixed
Rate Rate
Financial Financial
Total Liabilities Liabilities
£’000 £’000 £’000
Currency
At 31 October 2005 – Sterling 48,000 33,000 15,000
At 31 October 2004 – Sterling 31,387 16,387 15,000
Interest on floating rate bank deposits is based on the relevant national interbank rate.
Fixed rate financial liabilities
After taking into account the interest rate swaps entered into by the Group, the effective interest rate exposures of the Group’s
fixed financial liabilities as at 31 October 2005 and 31 October 2004 were as follows:
Total Weighted Period
Financial Average for which
Liability Interest the Rate
£’000 Rate is Fixed
Currency
At 31 October 2005 – Sterling 15,000 6.22% 7 years
At 31 October 2004 – Sterling 15,000 6.22% 8 years
Fair values of financial liabilities
2005 2005 2004 2004
Carrying Estimated Carrying Estimated
Amount Fair Value Amount Fair Value
£’000 £’000 £’000 £’000
Primary financial instruments held or issued to finance the Group’s operations:
Bank borrowings 48,274 48,274 31,519 31,519
Loan notes 193 193 211 211
Finance lease and hire purchase creditors 66 66
Interest rate swap — (396) — (39)
48,473 48,077 31,736 31,697
The fair value of the liabilities has been calculated by discounting expected cash flows at prevailing interest rates at the year end.
Financial assets
The only financial asset held by the Group is cash at bank and in hand of £519,000 (2004: £449,000) which is included at its carrying
value which is equivalent to the fair value. Dobbies Garden Centres Plc Annual Report & Accounts 2005
46
Notes to the Accounts (continued)
16 Provisions for liabilities and charges
Deferred taxation
2005 2004
Group £’000 £’000
At 1 November 2004 1,608 1,290
Profit and loss account charge 969 318
At 31 October 2005 2,577 1,608
The provision for deferred tax consists of the following amounts:
2005 2004
£’000 £’000
Capital allowances in excess of depreciation 2,689 1,737
Provisions (112) (129)
2,577 1,608
The amounts not provided in the accounts are as follows:
Not Not
Provided Provided
2005 2004
£’000 £’000
Capital gain rolled over on sale of properties 1,107 1,107
Deferred taxation
2005 2004
Company £’000 £’000
At 1 November 2004 1,603 1,290
Profit and loss account charge 969 313
At 31 October 2005 2,572 1,603
The provision for deferred tax consists of the following amounts:
2005 2004
£’000 £’000
Capital allowances in excess of depreciation 2,684 1,732
Provisions (112) (129)
2,572 1,603
The amounts not provided in the accounts are as follows:
Not Not
Provided Provided
2005 2004
£’000 £’000
Capital gain rolled over on sale of properties 1,107 1,107
No deferred tax has been provided in the Group or Company in respect of any potential gain on disposal of fixed assets, as the
likelihood is that any proceeds would be reinvested in replacement assets. Tax would only become payable if the replacement assets
were sold without rollover relief being obtained.  47
17 Called up share capital
2005 2004
£’000 £’000
Authorised
Ordinary shares of 10p each 1,275 1,275
Called up, allotted and fully paid
Ordinary shares of 10p each 996 990
The increase in share capital relates to the exercise of share options during the year.
At 31 October 2005 there were 9,958,240 shares in issue (2004: 9,901,310).
18 Financial commitments
2005 2004
£’000 £’000
Capital commitments
Contracted for but not provided 4,273 6,136
Operating lease commitments
Land and Buildings
2005 2004
Group and Company £’000 £’000
Leases which expire:
After 5 years 33 229
19 Movement on reserves
Share Profit and
Premium Loss
Account Account Total
Group £’000 £’000 £’000
At 1 November 2004 21,126 15,058 36,184
Share premium arising on share issues 192 — 192
Profit for the year — 2,436 2,436
At 31 October 2005 21,318 17,494 38,812
Company
At 1 November 2004 21,126 14,529 35,655
Share premium arising on share issues 192 — 192
Profit for the year — 2,401 2,401
At 31 October 2005 21,318 16,930 38,248 Dobbies Garden Centres Plc Annual Report & Accounts 2005
48
Notes to the Accounts (continued)
20 Reconciliation of movements in Shareholders’ funds 
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Profit for the financial year 3,410 3,765 3,375 3,594
Equity dividends (974) (879) (974) (879)
New share capital subscribed 6 3 6 3
Share premium arising 192 102 192 102
Net additions to Shareholders’ funds 2,634 2,991 2,599 2,820
Opening Shareholders’ funds 37,174 34,183 36,645 33,825
Closing Shareholders’ funds 39,808 37,174 39,244 36,645
21 Results of parent company
As permitted by Section 230 of the Companies Act 1985, the profit and loss account of the Parent Company is not presented as part of
these financial statements. The Parent Company’s profit for the financial year amounted to £3,375,000 (2004: £3,594,000).
22 Pension commitments
As stated in the accounting policies, the Group operates a defined benefits pension scheme, contributions to which are determined by
qualified actuaries on the basis of triennial actuarial valuations prepared using the projected unit method.
The most recent valuation was carried out at 1 March 2004 and was undertaken by a qualified independent actuary. The market value of
the scheme was £971,000 and the level of funding was 74%. The assumptions which have the most significant effect on the results of the
valuation are those relating to the rate of return on investment: 7.4%, and the rate of increase in salaries: 4.9% compound. The Trustees
have agreed with the Company that the historic deficit in the Scheme (£344,000) will be funded by the Company over the next 10 years. 
In addition the total future funding rate will be increased from 9.6% of salaries to 12.0%. This will be funded equally by the Company
and the scheme members.
Contributions to the defined benefits scheme during the year amounted to £58,000 (2004: £58,000). There were no prepaid or accrued
amounts at the year end. The defined benefit scheme was closed to new entrants in March 2000.
The Group also operates two defined contribution schemes. Contributions to the defined contribution schemes during the year
amounted to £84,000 (2004: £86,000). There were no prepaid or accrued amounts at the year end, other than as disclosed in the
Directors’ Remuneration Report. As required by SSAP 24, the figures included in the accounts in respect of the defined benefit company
pension scheme are based on an actuarial valuation carried out at 1 March 2004. This does not take into account any impact of the
movement in general stock market values since that date. 
FRS 17 Retirement Benefits
The pension cost figures used in these financial statements comply with the current pension cost accounting standard SSAP 24.
However, under the transitional arrangements for the new pension cost standard, FRS 17, the Company is required to disclose the
following additional information about the scheme and the figures that would have been shown in the Group balance sheet if FRS 17
applied in full today. The full actuarial valuation at 1 March 2004 was updated to 31 October 2005 by a qualified actuary for the
specific purpose of FRS 17 disclosures. 
The major assumptions used for the purposes of FRS 17 were:
2005 2004 2003
Rate of increase in salaries 4.8% 4.8% 4.6%
Rate of increase in pensions in payment 2.8% 2.8% 2.6%
Discount rate 5.0% 5.4% 5.6%
Inflation assumption 2.8% 2.8% 2.6%
Allowance has been made for increase in life expectancy within the mortality assumptions. 49
The fair value of the assets in the scheme, the present value of the liabilities in the scheme and the expected rates of return at each
balance sheet date were:
Expected Expected Expected 
Rate of Fair value Rate of Fair value Rate of Fair value
Return at at 2005 Return at at 2004 Return at at 2003
2005 £’000 2004 £’000 2003 £’000
Equities 7.4% 1,176 7.8% 888 8.5% 745
Bonds 4.7% 94 4.9% 93 5.1% 110
Other 4.7% 113 4.9% 89 5.1% 46
Total fair value of assets 1,383 1,070 901
Present value of scheme liabilities (2,378) (1,880) (1,523)
Deficit in the scheme (995) (810) (622)
Related deferred tax asset 299 243 187
Net pension liability (696) (567) (435)
The Employer contribution rate for 2005 was 4.8% of pensionable earnings. 
The scheme is a closed scheme and therefore under the projected unit method the current service cost would be expected to increase as
the members of the scheme approach retirement. 
Analysis of the amount which would be charged to operating profit had FRS 17 been applied
2005 2004
£’000 £’000
Current service costs 141 102
Past service costs — 8
141 110
Analysis of the amount which would be (charged)/credited to net finance charges had FRS 17 been applied
2005 2004
£’000 £’000
Expected return on assets 82 74
Interest on pension scheme liabilities (102) (85)
(20) (11)
Disclosure of impact on profit and loss reserves
If the above pension liability was recognised in the financial statements at 31 October, the Group’s profit and loss reserve would be 
as follows:
2005 2004 2003
£’000 £’000 £’000
Profit and loss reserve excluding pension liability 17,494 15,058 12,172
Pension liability under FRS17 (696) (567) (435)
Profit and loss reserve including pension liability 16,798 14,491 11,737 Dobbies Garden Centres Plc Annual Report & Accounts 2005
50
Notes to the Accounts (continued)
22 Pension commitments (continued)
Amounts which would be included in the Statement of Recognised Gains and Losses (STRGL) had FRS 17 been applied
2005 2004
£’000 £’000
Difference between actual and expected return on scheme assets 118 12
Experience gains/(losses) arising on scheme liabilities 31 (20)
Effects of changes in assumptions underlying the present value of scheme liabilities (232) (107)
Total actuarial gains and losses which would be recognised in the STRGL (83) (115)
Analysis of the movement in the scheme deficit during the year
2005 2004
£’000 £’000
Opening deficit in the scheme (810) (622)
Current service cost (197) (102)
Past service cost — (8)
Contributions 115 48
Finance income (20) (11)
Actuarial gains (83) (115)
Closing deficit in the scheme (995) (810)
History of experience of gains and losses
2005 2004 2003 2002
Difference between actual and expected return on scheme assets :
Amount (£’000’s) 118 12 39 (184)
Percentage of scheme assets 9% 1% 4% (26%)
Experience gains arising on scheme liabilities
Amount (£’000’s) 31 (20) (110) (21)
Percentage of the present value of the scheme liabilities 1% 1% 7% 2%
Total actuarial gains and losses which would be recognised in the STRGL
Amount (£’000’s) (83) (115) (196) (73)
Percentage of the present value of the scheme liabilities 3% (6%) (13%) (7%) 51
23 Earnings per share
The calculation of basic earnings per share is based on the following:
2005 2004
£’000 £’000
Profit on ordinary activities after taxation 3,410 3,765
No. No.
Weighted average number of ordinary shares 9,935,233 9,888,198
If all outstanding share options were exercised in full there would be a dilution of EPS as defined in FRS 14 as shown below. The average
market value of the Company’s shares during the year was 539p (2004: 458p).
Share options are exercisable as follows:
Dilutive Ordinary
Shares
2005 2004 Date Option 2005 2004
No. No. Granted Price (p) No. No.
Executive share option scheme 185,000 185,000 21.05.01 410.00 44,297 19,606
Approved employee share option scheme 2,500 2,500 14.02.97 120.00 1,943 1,846
3,500 4,500 10.12.97 260.00 1,812 1,949
3,000 15,500 02.09.98 225.00 1,748 7,895
— 11,000 31.01.00 310.00 — 3,564
8,500 14,500 08.02.00 362.50 2,784 3,038
7,000 7,000 21.05.01 410.00 1,676 742
10,500 22,500 13.11.01 405.00 2,612 2,630
— 2,500 19.12.01 410.00 — 265
6,000 6,000 16.04.02 497.50 463 —
29,000 29,000 18.03.03 330.00 11,248 8,132
70,500 81,500 31.03.04 467.50 9,361 —
Unapproved employee share option scheme 12,500 15,000 08.02.00 362.50 4,094 3,143
14,000 19,000 13.11.01 405.00 3,482 —
28,000 28,000 18.03.03 330.00 10,860 7,852
13,500 14,000 31.03.04 467.50 1,793 —
Sharesave scheme — 50,091 05.09.01 457.00 — —
393,500 507,591 98,173 60,662
Weighted average number of ordinary shares 9,935,233 9,888,198
Weighted average number of ordinary shares on a diluted basis 10,033,406 9,948,860
Diluted earnings per share 34.0p 37.8p Dobbies Garden Centres Plc Annual Report & Accounts 2005
52
Notes to the Accounts (continued)
23 Earnings per share (continued)
During the year the following options relating to the share option schemes were cancelled: 
No. of Date Subscription
Shares Granted price (p)
Approved share option scheme 5,000 13.04.01 405.00
9,000 31.03.04 467.50
Unapproved share option scheme 5,000 13.11.01 405.00
500 31.03.04 467.50
Sharesave scheme 37,661 05.09.01 457.00
57,161
During the year the following options relating to the share option schemes were exercised:
No. of Date Subscription
Shares Granted price (p)
Approved share option scheme 1,000 10.12.97 260.00
12,500 02.09.98 225.00
11,000 31.01.00 310.00
8,000 08.02.00 362.50
7,000 13.11.01 405.00
2,500 19.12.01 410.00
Unapproved share option scheme 2,500 08.02.00 362.50
Sharesave scheme 12,430 05.09.01 457.00
56,930
24 Share option schemes
Other than as stated below, no Director or member of their immediate family have any options to subscribe for shares in the Group.
Market
Exercise Price at Date from
No. of options Price Exercise Which Expiry
Directors 1/11/2004 Exercised 31/10/2005 (p) Date Exercisable Date
T J K Barnes 80,000 — 80,000 410p — May 2004 May 2011
J A H Trotter 45,000 — 45,000 410p — May 2004 May 2011
S M Brown 12,500 12,500 — 225p 538p Sept 2001 Sept 2008
S M Brown 12,500 — 12,500 362.5p — Feb 2003 Feb 2007
S M Brown 60,000 — 60,000 410p — May 2004 May 2011 53
The Company operated an Employee Share Save Scheme and issued 50,091 shares on 5 September 2001 at an option price of £4.57.
The Scheme was a three-year scheme which ended in September 2004. 
The Company also operates an employee share scheme which provides for the grant of options under (a) an Inland Revenue approved
share option scheme and (b) an unapproved share option scheme. The following option grants have been made under these schemes:
Approved employee share option scheme:
Option 
Number Date Price (p)
17,500 14.02.97 120.00
7,000 10.12.97 260.00
86,500 02.09.98 225.00
11,000 31.01.00 310.00
41,000 08.02.00 362.50
7,000 21.05.01 410.00
285 13.09.01 410.00
22,500 13.11.01 405.00
2,500 19.12.01 410.00
6,000 16.04.02 497.50
29,000 18.03.03 330.00
81,500 31.03.04 467.50
311,785
Unapproved employee share option scheme:
Option 
Number Date Price (p)
15,000 10.01.97 120.00
25,500 08.02.00 362.50
19,000 13.11.01 405.00
28,000 18.03.03 330.00
14,000 31.03.04 467.50
101,500
Included within the approved scheme options for 86,500 ordinary shares granted on 2 September 1998 and the unapproved scheme
options for 25,500 ordinary shares granted on 8 February 2000 are options to subscribe for 25,000 ordinary shares (being 12,500 ordinary
shares for each scheme), specifically granted to S M Brown, a Director of the Company. 
25 Reconcilation of operating profits to net cash inflow from operating activities
2005 2004
£’000 £’000
Operating profit 7,068 6,232
Depreciation charges 2,668 2,228
Goodwill amortisation 41 41
Increase in stocks (291) (35)
Increase in debtors (492) (382)
Increase in creditors 819 1,730
Net cash inflow from operating activities 9,813 9,814 Dobbies Garden Centres Plc Annual Report & Accounts 2005
54
Notes to the Accounts (continued)
26 Analysis of cash flows 
2005 2004
£’000 £’000
Returns on investment and servicing of finance
Interest paid (2,353) (1,593)
Net cash outflow from returns on investments and servicing of finance (2,353) (1,593)
Taxation
UK corporation tax paid (1,263) (1,032)
Net cash outflow from taxation (1,263) (1,032)
Capital expenditure and financial investments
Purchase of tangible fixed assets (22,027) (13,711)
Sale of tangible fixed assets — 897
Net cash outflow from capital expenditure and financial investments (22,027) (12,814)
Financing
Issue of shares 198 105
New borrowings after arrangement fees 14,938 4,989
Repayment of loan notes (18) (48)
Net cash inflow from financing 15,118 5,046
27 Analysis of net debt
At At
1 November 31 October
2004 Cash flow 2005
£’000 £’000 £’000
Cash at bank and in hand 449 70 519
Bank overdraft (6,224) (1,693) (7,917)
(1,623)
Debt due after one year (24,946) (14,938) (39,884)
Debt due within one year (211) 18 (193)
Hire purchase (6) — (6)
(14,920)
Total (30,938) (16,543) (47,481) 55
Officers and Professional Advisers
Directors
R A Hammond-Chambers (Non-executive Chairman)
J D K Barnes (Non-executive)
D D Stevenson (Non-executive)
W R E Thomson (Non-executive)
T J K Barnes (Chief Executive)
J A H Trotter (Operations Director)
S M Brown (Finance Director)
Secretary
S M Brown
Registered Office
Melville Nursery
Lasswade
Midlothian
EH18 1AZ
Bankers
Bank of Scotland
New Uberior House
11 Earl Grey Street
Edinburgh
EH3 9BN
Solicitors
Tods Murray WS
Edinburgh Quay
133 Fountainbridge
Edinburgh
EH3 9AG
Auditors
Deloitte & Touche LLP
Saltire Court
20 Castle Terrace
Edinburgh
EH1 2DB
Nominated Advisers
Brewin Dolphin Securities Limited
PO Box No. 8
7 Drumsheugh Gardens
Edinburgh
EH3 7QH
Nominated Brokers
Bell Lawrie White
48 St Vincent Street
Glasgow
G2 5TS
Registrar and Transfer Office
Lloyds TSB Registrars Scotland
PO Box 28448
Finance House
Orchard Brae
Edinburgh
EH4 1WQ Dobbies Garden Centres Plc Annual Report & Accounts 2005
56
Dobbies Locations
Dobbies Garden Centre Aberdeen
Hazeldene Road,
Aberdeen AB15 8QU
Telephone 01224 318 658
Dobbies Garden Centre Dalgety Bay
Western Approach Road,
Dalgety Bay, 
Fife KY11 5XP
Telephone 01383 823 841
Dobbies Garden World Dundee
Ethiebeaton Park, 
Monifieth, 
Dundee DD5 4HB
Telephone 01382 530 333
Dobbies Garden World Edinburgh
Melville Nursery, 
Lasswade,
Midlothian EH18 1AZ
Telephone 0131 663 1941
Dobbies Garden World Gailey
Gailey Island,
Gailey, 
Staffordshire ST19 5PP
Telephone 01902 791 555
Dobbies Garden Centre Kinross
Turfhills, 
Kinross KY13 7NQ
Telephone 01577 863 327
Dobbies Garden World Atherstone
Nuneaton Road,
Mancetter, near Atherstone,
Warwickshire CV9 1RF
Telephone 01827 715 511
Dobbies Garden World Ayr
Old Toll, 
Holmston,
Ayr KA6 5JJ
Telephone 01292 294 750
Dobbies Garden World Birtley
Durham Road, 
Birtley DH3 2QP
Telephone 0191 410 2556
Dobbies Garden Centre Cumbernauld
Eastfield Road, 
Westerwood,
Cumbernauld G68 0EB
Telephone 01236 736 100 Dobbies Garden World Milngavie
Boclair Road, 
Milngavie,
Glasgow G62 6EP
Telephone 01360 620 721
Dobbies Garden Centre Paisley
Hawkhead Road,
Paisley PA2 7AD
Telephone 0141 887 5422
Dobbies Garden World Perth
Huntingtower Park,
Crieff Road, 
Perth PH1 3JJ
Telephone 01738 638 555
Dobbies Garden World Preston
Blackpool Road,
Clifton (Nr Preston),
Lancs PR4 0XL
Telephone 01772 683 844
Dobbies Garden World Shrewsbury
Bayston Hill,
Shrewsbury SY3 0DA
Telephone 01743 874 261
Dobbies Garden World Stirling
Drip Road, 
Craigforth,
Stirling FK9 4UG
Telephone 01786 458 860
Dobbies Garden World Cirencester
Siddington, 
Cirencester,
GL7 6EU
Due to open April 2006
Dobbies Garden World Ponteland
Street House Farm,
Ponteland,
Newcastle Upon Tyne NE20 9BT
Telephone 01661 820 202 Dobbies Garden Centres plc
Melville Nursery, Lasswade,
Midlothian 
EH18 1AZ
www.dobbies.com
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