ANGLE plc
Surrey Technology Centre
The Surrey Research Park
Guildford GU2 7YG
T: +44 (0)1483 295830
F: +44 (0)1483 295836
E: enquiries@angleplc.com
www.ANGLEplc.com Technology wealth creation
ANGLE plc  Annual   report  and  accounts  2006  ANGLE plc   Annual  report  and  accounts  2006  CONSULTING
COMMERCIALISATION
‡ Strategies
‡ Policies
‡ Programmes
‡ Due diligence
MANAGEMENT
TURN KEY SOLUTIONS
‡ Science Parks
‡ Product development
‡ Investment funds
‡ Programmes
VENTURES
VALUE CREATION 
‡ Start-up management
‡ Seed funding
‡ IP partners
‡ Commercialisation 
‡ Exit
TECHNOLOGY
Technology wealth creation Directors and Advisors 
what we do ANGLE has created an integrated business model 
that offers quoted access to early stage technology 
investments. ANGLE’s proprietary Progeny
® 
process 
addresses the critical issue of early stage management 
in intellectual property (IP) commercialisation 
maximising returns and minimising risk.
Directors Hance Fullerton OBE, Chairman 
ANR
 Andrew D W Newland, Chief Executive
 Ian F Griffiths, Finance Director 
 David W Quysner, Non-executive Director 
ANR
 
 
A
 – Audit Committee
 
N
 – Nomination Committee
 
R
 – Remuneration Committee
Secretary Ian F Griffiths
Company number 4985171
Registered office and Surrey Technology Centre
Business address The Surrey Research Park
 Guildford
 Surrey GU2 7YG
 +44 (0)1483 295830
 www.ANGLEplc.com 
Auditors Baker Tilly
 The Clock House
 140 London Road
 Guildford
 Surrey GU1 1UW
Nominated Advisor Collins Stewart Ltd
and Broker 88 Wood Street,
 London EC2V 7QR
Registrars CRG Capita
 34 Beckenham Road
 Beckenham
 Kent BR3 4TU
Bankers National Westminster Bank Bank of America
 PO Box 1 300 East Main Street
 1 Stoke Road Charlottesville
 Guildford Virginia VA 22902
 Surrey GU1 3ZR
Solicitors/Lawyers Pinsent Masons Holland & Knight
 Dashwood House 1600 Tysons Boulevard
 69 Old Broad Street Suite 700, Mclean
 London EC2M 1NR Virginia VA 22102-4867
 
Financial Public Relations Buchanan Communications Ltd
 45 Moorfields
 London EC2Y 9AE ANGLE plc  Annu Al Repo Rt And Accounts 2006
01
Financial highlights
Strong  progress  in  developing  Progeny
®
  companies
1
.
Value  of  Progeny
®
  companies  at  30  April  2006  (excluding  controlled  investments):  £6.5 million  (2005:  £3.3 million).  Expenditure  on  controlled  investments
2
  of  £2.2 million  during    the  year  (2005: £0.25 million).  Portfolio  of  11  Progeny
®
  companies  at  30  April  2006  (2005:  8).
Successful  flotation  of  one  Progeny
®
  company  during  year    (2005:  none).
Loss  before  tax  of  £2.7 million (2005:  £2.9 million).  Loss  before  controlled  investments  and  tax  of £0.5 million    (2005:  £2.7 million).
Cash  balance  at  30  April  2006  of £8.2 million  (2005:  £5.5 million).
Placing  raising  £8.1  million  before  expenses.
Progeny
®
  Partnership  programme  developed  and  launched.  20  year  exclusive  Progeny
®
  Partnership  agreed  with  The  University  of  Reading  (signed  in  July  2006).  
1  Progeny
®
 companies are businesses established by ANGLE to commercialise intellectual property (IP) using ANGLE’s 
proprietary Progeny
®
 process.
2  Controlled investments are Progeny
®
 companies where the Group owns a controlling equity position. Under IFRS, these 
are consolidated and the relevant costs are charged to the income statement rather than placed on the balance sheet as 
under the previous UK GAAP accounting policy.
‡
‡
‡
‡
‡
‡
‡
‡
‡
‡
‡
02 ANGLE at a glance
04 Chairman’s statement
06 Chief Executive Officer’s review
10 Financial review
12 Consulting and Management
14 Investment portfolio
26 Board of Directors
27 Directors’ report
29 Corporate governance report
32 Remuneration report
35 Independent auditors’ report
36 Consolidated income statement
37 Consolidated balance sheet
38 Consolidated cash flow statement
39 Consolidated statement of  
changes in equity
40 Notes to the consolidated  
financial statements
62 Company balance sheet
63 Notes to the Company  
financial statements
IBC Directors and Advisors
 
Highlights ANGLE plc  Annu Al Repo Rt And Accounts 2006
02
ANGLE at a glance
ANGLE is an international Consulting, 
Management and Ventures company 
focusing on the commercialisation of 
technology and the development of 
technology-based industry.
g EOg Ra Phic REach
ANGLE  operates  in  the  world’s  two  most  important  technology  commercialisation  markets.  Its  risk-managed  approach  is    designed  to  maximise  the  returns  for  shareholders  across  a  diverse  portfolio    of  technologies  and  markets.
OUR PEOPl E
Our  experienced  management  team  includes  senior  executives  with  technological  and  commercial  backgrounds  and  expertise  in  bioscience,  computing,  electronics,  energy,  life  sciences,  materials  technology  and  software. ANGLE plc  Annu Al Repo Rt And Accounts 2006
03
c reating wealth in partnership with Ip owners
c Ons Ulting 
The successful development of any new 
technology requires a combination of 
technological skills, finance and 
management. ANGLE provides 
consulting services to design and 
develop technology commercialisation 
support programmes, undertake market 
and technology due diligence and 
develop commercialisation strategies.
Manag EMEnt
The successful delivery of any new 
technology programme requires 
access to a skilled management 
team. ANGLE provides a fully 
managed service for the delivery  
of technology commercialisation 
programmes including science 
parks, product development 
services and investment funds.
VEnt UREs
ANGLE founds, develops and 
operates its own technology-based 
businesses. Utilising our in-house 
Progeny
®
 process, we commercialise 
intellectual property (IP) developed  
by our IP partners.
‡ ‡ ‡
PROgEny
®
 PROc Ess
Using  its  unique  Progeny
®
  process,  ANGLE  selects  and  exploits  those  technologies  that  will  have  a  step-change  impact  in  a  significant  market.  Progeny
®
  intimately  links  high-calibre  management  with  the  source  of  capital,  enabling  ANGLE  to  successfully  create  new  technology  businesses  and  overcome  many  of  the  risks  associated  with  early-
stage  investment.  ANGLE  works  in  partnership  with  universities,  companies  and  research  organisations  that  are  recognised  sources  of  ground-
breaking  intellectual  property. ANGLE plc  Annu Al Repo Rt And Accounts 2006
04
Chairman’s statement
I am pleased to report that in the second 
year of operation since flotation in March 
2004, ANGLE’s business has progressed 
significantly. The portfolio of Progeny
®
 
companies has been expanded to eleven 
with the addition of three new companies 
in the year. The Progeny
®
 process was 
further validated with the flotation of 
Provexis during the year. 
ANGLE has now moved into the next 
phase of its development, which is to 
scale up and capitalise on its assets  
and opportunities. 
PiPElin E Pa Rtn ERshi Ps
In a major strategic development during 
the year, responding to university 
demand and the changing market  
for intellectual property (IP) 
commercialisation from universities, 
ANGLE has developed and launched  
its Progeny
®
 Partnership programme  
for long term partnership agreements 
with major research establishments. 
Partners see this as a key development 
addressing the critical issue of early 
stage management, which is the primary 
limitation on commercialisation.  
The benefit to ANGLE is certainty  
of access to high quality IP on pre-
agreed terms, reduced costs of IP 
search and engagement with IP 
owners, and the option value of long 
term exclusive agreements.
We are delighted today to announce  
the first Progeny
®
 Partnership, a 20 year 
exclusive agreement with The University 
of Reading which, according to the most 
recent government Research Assessment 
Exercise, has 20 research departments 
rated as 5 or 5*, denoting international 
excellence in research activity. 
The University of Reading has world-
class research departments in 
meteorology, systems engineering, food 
science and plant science. ANGLE is 
already working with the University to 
evaluate opportunities arising from 
these and other areas.
This deal is the first of a number of 
Progeny
®
 Partnership agreements 
providing exclusive right of first refusal 
that we expect to be able to announce 
over the next 18 months. 
OUtl OOk FOR th E yEa R Ending  
30 aPR il 2007
The combination of our consulting 
relationships with collaborative 
relationships and now long term 
Progeny
®
 Partnership agreements 
provides ANGLE with unique access  
to world class IP .
ANGLE’s objective is to 
achieve profitable long 
term capital growth for its 
shareholders ANGLE plc  Annu Al Repo Rt And Accounts 2006
05
Moving into the next phase of development
This IP access combined with our 
established management team, 
investment track record and proprietary 
Progeny
®
 process, is designed to deliver 
long term value to our shareholders. 
During the year ending 30 April 2007,  
we expect strong progress in both our 
existing portfolio and our pipeline. 
I would like to thank all members of  
the ANGLE team for their efforts in 
delivering a strong performance in  
our second year as a public company. 
We have an exceptional team and  
I am grateful for all their hard work, 
enthusiasm and commitment to  
the business. 
I would like to reiterate my thanks  
to former members of the Board, 
Dawson Buck and Iain Ross, for  
their service to the Board since  
2000 and 2004 respectively.
 
h ance Fullerton
Chairman 
26 July 2006
Technology wealth creation
World 
class IP
Life Sciences Physical Sciences
Novocellus
Parsortix
Provexis Acolyte
NeuroTargets
Development Potential exit Value creation
Aberro
Geomerics
Synature
Kaloptics
InnoMatica
Corpora
(trade sale of 
Exago) ANGLE plc  Annu Al Repo Rt And Accounts 2006
06
The year ended 30 April 2006 has been 
a year of expansion for ANGLE. We 
ended the year with a strengthened IP 
pipeline, a larger and more valuable 
portfolio of Progeny
®
 companies, a 
stronger institutional shareholder base 
and increased cash resources.
REsUlts FOR th E yEa R End Ed  
30 aPR il 2006 
During the year ended 30 April 2006, 
ANGLE made a loss before tax of  
£2.7 million (2005: £2.9 million). This 
comprised a substantially reduced loss 
before controlled investments and tax 
of £0.5 million (2005: £2.7 million) and 
expenditure on controlled investments 
(where relevant costs are charged to the 
income statement), increased by nine 
times to £2.2 million (2005: £0.25 million).
As the ventures programme was 
expanded, net operating costs to 
establish, develop and create value in 
Progeny
®
 companies increased by 52% 
to £2.4 million (2005: £1.6 million). 
The change in fair value of investments 
comprises gains and losses as follows:
The largest fair value gain was achieved 
on the successful flotation of Progeny
®
 
company Provexis in June 2005. Overall 
the value of Progeny
®
 companies 
(excluding controlled investments) 
increased by £3.2 million, a 95% increase, 
to £6.5 million (2005: £3.3 million).
cO ns Ulting and Manag EMEnt
Following the deferment of business 
and planned investment in expansion  
in the first half, the Consulting and 
Management business returned  
to profitability in the second half  
as planned.
The Consulting and Management 
business is designed to deliver key 
benefits to the Ventures business 
including access through consulting 
relationships to IP opportunities,  
market credibility with IP owners,  
and a strong management resource  
for commercialisation activities. 
    2006 2005
    £’000 £’000
Fair value gains 2,862 681
Fair value losses    (484) (2,265)
Change in fair value    2,378 (1,584)
ANGLE is gearing up to 
exploit its established 
Progeny
® 
process and 
growing intellectual 
property platform
Chief Executive Officer’s review  ANGLE plc  Annu Al Repo Rt And Accounts 2006
07
Institute (Europe’s leading nutrition 
research institute) and British Telecom. 
In 2005, ANGLE added to its IP pipeline 
by signing a collaborative deal with  
Ben Franklin Technology Partners of 
Southeastern Pennsylvania. The terms  
of this agreement made ANGLE the 
preferred commercialisation partner for 
technologies from universities, colleges 
and related institutions in the region, 
which attracts more than $1 billion of 
research funding per annum. 
In a major strategic development  
during the year, ANGLE developed  
and launched its own Progeny
®
 
Partnership programme for long term 
partnership agreements with major 
research establishments. 
The first such partnership signed in July 
2006, following collaboration during the 
year, is a 20 year exclusive agreement 
with The University of Reading. Reflecting 
the value enhancing potential of 
ANGLE’s proprietary Progeny
®
 process, 
ANGLE has secured market leading 
terms for commercialisation as follows:
The exclusive right of first refusal  
to invest in all University IP that is 
commercialised. Where ANGLE 
exercises this right, it will invest under 
a set formula obtaining an equity 
stake of 60% in each Progeny
®
 
‡
company for an investment of up  
to £0.5 million. ANGLE will drive 
development of these businesses 
utilising its proprietary Progeny
®
 
process and expects to invest at  
least £3.0 million over the first five 
years of the agreement.
A 15% share in all commercial returns 
from University IP , both licensing  
and spin-out, in which ANGLE does 
not invest. ANGLE will provide 
consultancy support to the University 
on IP commercialisation. 
The Progeny
®
 Partnership programme 
provides a complete system and  
legal framework for turnkey venture 
establishment with the IP partner.  
We believe it combines the benefits  
of existing investment models with  
a unique approach to addressing  
the fundamental management issue 
which limits the ability of IP owners  
to achieve commercialisation.
Progeny
®
 Partnerships has been well 
received by other major universities and 
we are in active discussions to establish 
long term Progeny
®
 Partnerships with 
other universities. 
‡
During the year, Consulting and 
Management activities delivered 
revenue of £4.0 million, which was 
maintained from 2005, itself a record 
year. Business in Qatar is developing 
particularly well, where the follow-on 
contract worth in excess of £6.0 million 
over three years is now established.  
This revenue is a major contributor to 
the whole Group’s infrastructure costs 
enabling ANGLE’s Ventures activities to 
be undertaken more cost effectively.
The Consulting and Management 
business also provides a route into new 
markets. Progeny
®
 companies are now 
being developed in the United States 
following six years of Consulting and 
Management development there. 
PiPElin E Pa Rtn ERshi Ps
ANGLE has a strong set of 
relationships with major research 
establishments in the UK and US 
founded on our consulting relationships 
with over 80 universities, government 
research laboratories and major 
corporates. Progeny
®
 companies have 
so far been established based on IP 
from the University of Bristol, the 
University of Cambridge, New York 
University, the University of Virginia, 
The University of York, Dstl Porton 
Down (the UK Government’s 
biological and chemical defence 
research organisation), the Rowett 
expanding our capability
PROg Eny
® 
Pa Rtn ERshi Ps
 ‡  Addresses critical issue of early stage management
 ‡  l ong term access to Ip
 ‡ exclusive rights to commercialise Ip
 ‡  t urnkey spin-out establishment  and development ANGLE plc  Annu Al Repo Rt And Accounts 2006
08
Chief Executive Officer’s review continued
PORt FOli O
During the year, ANGLE increased its 
expenditure on controlled investments 
to £2.2 million (2005: £0.25 million). 
Controlled investments are Progeny
®
 
companies where the Group has control, 
typically through owning more than 50% 
of the equity. 
At the beginning of the year, ANGLE 
had a portfolio of eight Progeny
®
 
companies. During the year ended  
30 April 2006, ANGLE founded three 
new companies taking the total 
portfolio to eleven companies. The 
movement in the number of Progeny
®
 
companies is set out below:
At 30 April 2006, ANGLE’s quoted 
investments were valued at £4.9 million 
(2005: £0.8 million).
At 30 April 2006, ANGLE had nine 
unquoted investments. Of these seven 
were controlled investments and two 
non-controlled. Non-controlled 
investments are recorded on the 
balance sheet at fair value of £1.6 million 
(2005: £2.5 million). 
The controlled investments are 
consolidated and their value is not 
shown on the balance sheet. At 30 April 
2006, ANGLE’s cumulative expenditure 
on these controlled investments was 
£2.5 million (2005: £0.25 million). 
During the year, our portfolio of 
Progeny
®
 companies achieved key 
commercial milestones. As a result,  
the portfolio has made progress 
towards major cash realisation 
opportunities. Notable successes 
during the year were the:
launch of its software testing product 
and initial sales by Aberro; 
launch of rapid MRSA test and initial 
sales by Acolyte Biomedica;
development of computer games 
graphics product by Geomerics; 
establishment of clinical trials for its  
in-vitro fertilisation (IVF) product by 
Novocellus;
launch of product and initial sales to 
beta sites by Synature; 
flotation of Provexis followed by the 
launch of heart-health juice drink  
Sirco
®
 in Tesco and Waitrose, US  
patent granted, Heart UK product 
endorsement, GRAS (Generally 
Recognised as Safe) status achieved in 
the US, collaboration agreement for 
Crohn’s disease.
In addition, work was completed  
to establish three new Progeny
®
 
companies, broadening and 
strengthening the portfolio as follows:
 InnoMatica: developing products for 
the US$1.2 billion per annum global 
market for percussive power tools 
‡
‡
‡
‡
‡
‡
‡
 Investments
   Non- Non-
  Controlled controlled controlled
Number of Progeny
®
 companies  Unquoted Unquoted Quoted Total
At 1 May 2005  4 3 1 8
Progeny
®
 companies founded  3 – – 3 
Companies floated during the year  – (1) 1 –
At 30 April 2006  7 2 2 11
Fair value on the Balance Sheet
  £ million £ million £ million £ million
30 April 2006   N/A 1.6 4.9 6.5
30 April 2005  N/A 2.5 0.8 3.3
li FE sci Enc Es
ANGLE  life  science  portfolio  currently  comprises  five  companies.  These  companies  are  developing  a  wide  range  of  technologies  including  diagnostics,  functional  genomics,  IVF  diagnostics,  cell  seperations,  nutraceuticals.
Physical sci Enc Es
ANGLE  physical  science  portfolio  currently  comprises  six  companies.  These  companies  are  developing  a  wide  range  of  technologies  including  productivity  software  (testing  and  finding/sharing  information),  computational  graphics,  vibration  reduction,  surface  image  capture  and  internet  personalisation.
Growing the Ip platform ANGLE plc  Annu Al Repo Rt And Accounts 2006
09
reducing operator exposure to 
vibration, the principal cause of 
medical conditions such as Vibration 
White Finger (VWF). The technology 
has been developed over ten years 
by a team of leading engineers, 
academics from the University of 
Cambridge and members of the 
power tools industry. 
Kaloptics: commercialising innovative 
technology developed at the Media 
Research Lab in the Computer 
Science Department of New York 
University for the rapid capture and 
recreation of photo-realistic surface 
images. The technology has a wide 
range of commercial applications in 
multi-billion dollar industries, including 
special effects, animation, computer 
gaming and medical devices. 
Parsortix: developing products for  
the US$0.6 billion per annum global 
market for prenatal diagnostics 
allowing the separation of foetal  
cells from maternal blood eliminating 
the need for maternal invasive 
procedures such as amniocentesis. 
The technology, developed in private 
laboratories in both the US and 
Europe, is also applicable to bone 
marrow transplant procedures used 
for the treatment of cancer. 
None of the value of these companies is 
shown on the balance sheet since they 
are all controlled investments. 
‡
‡
Work is at an advanced stage in developing 
additional portfolio companies. 
c ash
At the year end, ANGLE had 
strengthened its cash position to  
£8.2 million (2005: £5.5 million). 
Planned expenditure on development 
of the Progeny
®
 companies portfolio 
was more than offset by a placing in 
March 2006 raising £8.1 million of 
additional funds (gross). We were 
delighted with the strong support  
from existing institutional shareholders 
and the quality of the additional 
institutional places. This strengthening 
of the shareholder base will support 
the Group’s growth plans to develop 
the existing Progeny
®
 company 
portfolio and exploit opportunities 
from the pipeline. 
In addition to cash balances, ANGLE 
held quoted investments valued  
at £4.9 million at the year end 
(2005: £0.8 million).
ANGLE’s integrated business model 
benefits from consulting revenues which 
cover a substantial proportion of the 
Group’s overhead as well as providing 
key strategic and operational benefits. 
OUtl OOk FOR th E yEa R Ending  
30 aPR il 2007
The Consulting and Management  
sold order book remains strong at 
£7.8 million (2005: £9.0 million) but lower 
due to delivery of significant contracts 
won in earlier years. Over the next year, 
we are looking forward to returning  
to higher levels of profitability in the 
Consulting and Management business, 
although the Ventures business will 
remain the primary focus.
We expect strong developments in the 
Progeny
®
 company portfolio during the 
year as the existing Progeny
®
 companies 
mature and new Progeny
®
 companies 
are founded. In particular we are looking 
forward to working with The University 
of Reading to deliver some high growth 
Progeny
®
 companies based on their IP .
A major emphasis will be placed on 
building substantial value in our IP 
pipeline through the measured roll-out 
of our Progeny
®
 Partnership programme 
securing long term partnerships with 
further top-rated institutions. 
Overall, we expect another year of 
continuing growth.
a ndrew n ewland 
Chief Executive
26 July 2006
OUR st Rat Egy
  ‡	Roll out progeny
® 
partnership programme
 ‡ expand progeny
®
 company portfolio
 ‡  drive progeny
® 
companies through  
major commercial milestones
 ‡ deliver exceptional returns on investment
‡ ANGLE plc  Annu Al Repo Rt And Accounts 2006
10
Financial review
ANGLE’s financial 
strength was improved 
following a successful 
placing
from the existing Progeny
®
 companies. In 
particular, Provexis completed a reverse 
acquisition of Nutrinnovator Holdings plc 
in June 2005 and its shares are now 
traded on AIM.
a dOPti On OF int ERnati Onal 
Financial R EPORting standa Rds ( iFRs)
The financial results for the year are the 
first set of full year results prepared  
and produced in accordance with IFRS.  
The key differences between the results 
for the year as reported under IFRS and 
United Kingdom Generally Accepted 
Accounting Principles (UK GAAP) are  
set out in Note 24. The most significant 
changes involved in the adoption of 
IFRS that affect the financial results are 
as follows:
Controlled investments – Under UK 
GAAP accounting policies, controlled 
investments were previously 
accounted for as investments and 
held at cost on the balance sheet. 
Under IFRS no similar treatment exists 
and controlled investments are now 
consolidated as subsidiaries. Costs 
incurred are expensed and the fair 
value of controlled investments is not 
shown on the balance sheet. 
Investments – with the exception of 
controlled investments, the Group’s 
investments in Progeny
®
 companies 
are now held on the balance sheet at 
fair value. Changes in fair value are 
recognised in the Income Statement. 
Under UK GAAP , investments were 
held at cost subject to impairment.
Share based payments – under IFRS 2, 
a charge is required in the Income 
Statement relating to share based 
payments, primarily in relation to the 
‡
‡
‡
fair value of share options granted to 
staff. Under UK GAAP , no such charge 
was required, although under FRS 20 
this would have been required in the 
future.
tUR n OVER (nO t E 2)
Turnover for the year was essentially  
flat with a slight increase of 3% from  
the Consulting and Management 
businesses offset by a reduction in the 
income recognised by the Ventures 
business. The Group continues to 
supply services to the Progeny
®
 
companies. To the extent that these  
are controlled investments they are 
consolidated and the revenues are 
netted off on consolidation. 
There is a small amount of turnover 
generated from some initial sales within 
controlled investments. Controlled 
investments are typically developed 
from a start-up stage and therefore 
although there is the possibility of  
some early revenues, in the main these 
are not expected to be significant in  
the early years.
c hang E in Fai R Val UE (nO t E 11)
The overall fair value gain for the year  
was £2.4 million (2005: loss of £1.6 million), 
with the increase in value of Provexis on 
flotation being the most significant part 
of the overall gain. Other movements  
in fair value have arisen as a result of 
applying our valuation policy as detailed 
in Note 1.5. The small portfolio size, 
timescales to exit and dependence  
on market conditions means that the 
timing of profits, and cash, from equity 
realisations is uncertain. Changes in fair 
value have the potential to result in both 
In March 2006, some two years after the 
initial listing on AIM, a secondary placing 
was undertaken that raised a further £8.1 
million (gross) to support our investment 
activities. The Progeny
®
 company 
investment portfolio is developing well, 
with progress being made to create 
future growth in capital value for 
shareholders through developing 
existing portfolio companies as well as 
creating new portfolio companies. 
Consulting and Management activities 
have continued to develop and although 
the second half of the year improved the 
results are below expectations following 
the deferral of some business and 
planned investment in expansion during 
the first half.
The financial results for the year reflect 
the planned increase in Ventures 
activities and in particular the spend on 
controlled investments which has 
increased by a factor of nine. These are 
medium term investments that may take 
several years to mature, however, 
measurable returns are now being seen  ANGLE plc  Annu Al Repo Rt And Accounts 2006
11
‡
highlights
 ‡  The value of investments on the balance sheet increased by 95% to  
£6.5 million (2005: £3.3 million). Quoted investments increased to  
£4.9 million (2005: £0.8 million) following the successful flotation of Provexis.
‡  Expenditure on controlled investments of £2.2 million during the year  
(2005: £0.25 million).
‡  Loss before tax of £2.7 million (2005: £2.9 million).
 ‡  Loss before controlled investments and tax of £0.5 million  
(2005: £2.7 million).
 ‡  Cash balances of £8.2 million (2005: £5.5 million).
 ‡  Successful placing raising £8.1 million (£7.4 million net) in March 2006.
 ‡  Loss per share reduced by 17% to 14.4p (2005: 17.3p).
material and volatile changes to the 
numbers; however, as the investment 
portfolio increases in size over time the 
impact of any one particular investment 
should be reduced.
OPERating c Osts ( nO t E 3)
Staff costs remained the Group’s most 
significant individual cost item and, 
excluding share based payments, 
increased by 80% over the previous  
year to £5.0 million (2005: £2.8 million), 
reflecting expansion within the Group  
as well as the controlled investments. 
Other operating costs have increased  
in line with the expansion of Ventures 
activities. The Group remains 
committed to maintaining as low and 
flexible a cost base as possible. Share 
based payments charges reflect the 
charges required to be made under  
IFRS as a result of the Company, and 
controlled investments, having granted 
share options to staff.
Controlled investments results are now 
consolidated into the Group accounts 
rather than being shown on the balance 
sheet. As planned, there has been a 
significant increase in expenditure  
to £2.2 million (2005: £0.25 million) to 
develop these Progeny
®
 companies  
to the point where they have met 
significant milestones and are in a 
position to move to the next stage  
of development, typically with third 
party funding. We expect to see a 
number of the Progeny
®
 companies 
securing third party investment in  
the new year.
Restructuring charges of £0.25 million 
were incurred in the year following the 
reorganisation of the business to 
strengthen regional leadership and 
position the Group for future growth.
REtain Ed l Oss FOR th E yEa R
The Group has produced a loss of  
£2.5 million (2005: £2.9 million). The 
Chief Executive’s review on pages 6 to 9 
explains the results in more detail. 
Basic and fully diluted loss per share  
of 14.36p (2005: 17.28p).
in VEst MEnt PORt FOli O (nO t E 11)
ANGLE’s investment portfolio at  
30 April 2006 comprised shares in two 
(2005: one) listed companies and nine 
(2005: seven) unlisted companies as 
shown on the table on pages 14 and 15. 
The year has been one of development 
and progress for Progeny
®
 companies in 
terms of meeting technical milestones.
Controlled investments are 
consolidated into the result of the 
Group and accounted for £2.2 million  
of expenditure (2005: £0.25 million). 
Other investments are shown at fair 
value and following a gain in fair value  
of £2.4 million (2005: loss £1.6 million) 
were held on the balance sheet at  
£6.5 million (£3.3 million). Follow-on 
funding of £0.8 million (2005: £1.0 million) 
was provided to investments during  
the year.
c ash ( nO t E 14)
The Group ended the year with a cash 
balance of £8.2 million (2005: £5.5 million). 
Net proceeds of £7.4 million were raised 
in a secondary placing in March 2006,  
in line with the original expectation  
that funds raised at flotation would last 
some two years. The Group is carefully 
executing its business plan so that its 
business activities are in line with the 
available cash resources. Progress with 
the older portfolio companies means 
that we are looking to recycle cash 
proceeds to allow us to expand the 
investment portfolio further. 
ian g riffiths
Finance Director
26 July 2006 ANGLE plc  Annu Al Repo Rt And Accounts 2006
12
Consulting and Management
c reative solutions to commercial challenges
c onsulting: ANGLE provides consulting services  
on the commercialisation of technology and the 
development of technology industry.
Management: ANGLE offers a fully managed service 
for the delivery of technology commercialisation 
programmes on behalf of clients in the private and 
public sectors.
Qatar science & 
technology Park 
ANGLE continued to successfully 
implement and manage Qatar Science & 
Technology Park (QSTP) during the year. 
ANGLE was appointed in late 2004 by 
Qatar Foundation to lead the prestigious 
QSTP project until March 2009. Worth 
over £6 million, it is ANGLE’s largest ever  
fee-for-service contract.
Critically, ANGLE achieved its target  
of deploying five additional full-time 
consultants to the QSTP management 
team on schedule. The deployment 
brings the number of ANGLE staff 
seconded to the project to its full 
complement of seven.
During the year ANGLE also undertook 
additional consulting work associated 
with QSTP . It completed the design of  
a dozen ‘capacity building programmes’  
for Qatar Foundation, all of which were 
adopted by the client and are currently 
being implemented by the ANGLE 
team. The programmes include seed 
and venture capital funds, where 
ANGLE was able to bring to the client  
its technology investment experience. 
ANGLE’s US Consulting and Management 
team was commissioned by Qatar 
Foundation to create a blueprint for a 
national research authority. The plan was 
delivered on time and on budget, and was 
positively received by the client. 
Significant advances were made by the 
management team on the delivery of 
QSTP during the year. The government 
passed a critical piece of legislation 
designating the science park a free-
trade zone, allowing its tenants to be 
licensed and commence operations. 
Major new tenants were recruited, 
including GE and Rolls-Royce, as a  
result of expanded marketing activities. 
Relationships with anchor tenants 
progressed from memoranda of 
understanding to signed leases and 
detailed fit-out planning.
Aerial View of QSTP ANGLE plc  Annu Al Repo Rt And Accounts 2006
13
Welsh innovations  
in h ealthcare  
(Wish ) service
In 2005 ANGLE was awarded a contract 
by the Welsh Assembly Government  
to deliver the Welsh Innovations in 
Healthcare (WIsH) service to provide  
the NHS in Wales with advice and 
support in maximising the potential  
of the IP and innovations that are 
generated by the staff of the NHS.
The role of WIsH is to provide 
specialised advice and direct support  
in the identification, appraisal,  
selection and exploitation of service  
and technology innovation projects. In 
addition WIsH will provide training in 
managing IP and its exploitation. Other 
functions include preparation of a 
database of wider Welsh expertise 
relevant to support and exploit innovation.
This contract places ANGLE at the 
centre of the 14 NHS Trusts and 22 Local 
Health Boards and their key researchers. 
We provide specialised advice and direct 
support in the identification, appraisal, 
selection and exploitation of service and 
technology innovation projects.
lda sME innovation 
support Programme
ANGLE was awarded a significant 
contract extension of £2.2 million to 
continue to work with the London 
Development Agency (LDA) to  
deliver the SME Innovation Support 
Programme. Of the £2.2 million, 
£800,000 is fees to ANGLE with the 
balance being grants to companies  
and project expenditure. The extension 
builds on the successful delivery of 
consulting work provided by ANGLE  
to over 50 SME organisations. The aim  
is now to work with more companies  
to develop products and stimulate 
innovation within the London Objective 
area by providing easier access to 
expertise, particularly from London’s 
universities and research institutions. 
www.london-innovation.org.uk.
t he Bioa ccelerator 
ANGLE is entering the fourth 
successful year of its contract to 
manage the BioAccelerator of Fairfax 
County, Virginia, US, an international 
business accelerator designed to spur 
the development of new companies  
built around converging technologies 
which include life sciences. An ANGLE 
management team of three is based  
at the BioAccelerator to deliver 
mentoring, business and product 
development advice, and administrative 
support to the client companies. 
Strategically located near Washington 
DC, the BioAccelerator project is a 
centrepiece of the Fairfax County 
Economic Development Authority 
(FCEDA) strategy for further diversifying 
its technology business base. ANGLE plc  Annu Al Repo Rt And Accounts 2006
14
Provexis
NeuroTargets
Parsortix
Novocellus
Acolyte  
Biomedica
Investment portfolio
c ombining money and management
ANGLE founds, develops and operates Progeny
®
 
companies in which it retains equity stakes. By combining 
experienced management with capital, ANGLE’s in-house 
Progeny
®
 process satisfies the unique requirements of 
early-stage technology businesses.
ANGLE bridges the ‘credibility gap’ between sources of 
IP and the conventional investment community.
Dstl,  Porton  Down
University  of  Bristol
University  of  York
Private  US  and  European  laboratories
Rowett  Institute
Medical  diagnostics
Functional  genomics
IVF  diagnostics
Cell  separation
Nutraceutical
Rapid  bacterial  and  antibiotic  susceptibility
Analgesia,  diabetes  complications,  spinal  cord
IVF  embryo  testing
Pre-natal  diagnostics
Cardiovascular  health
11.6%
25.1%
62.7%
100%
24.8%
company o riginal source of Ip technology principal application equity position
ANGLE’s investments in Corpora plc and Provexis plc have graduated from the Progeny
®
 process following the trade sale of 
Exago to Corpora and the flotation on AIM of Provexis.
l iFE sci Enc Es ANGLE plc  Annu Al Repo Rt And Accounts 2006
15
Kaloptics
Synature
InnoMatica
Geomerics
Aberro
Physical sci Enc Es
Dr  Bill  Rogers
British  Telecom
University  of  Cambridge  academics
University  of  Cambridge  and  inventors
New  York  University
Productivity  software
Productivity  software
Computational  graphics
Vibration  reduction
Rapid  surface  image  capture
Software  testing  Finding  and  sharing  information
Rapid  rendering  of  computer  games  graphics
Construction  pneumatic  and  hydraulic  tools
Film  and  design  special  effects
61.5%
6.1%
100%
100%
100%
company o riginal source of Ip technology principal application equity position
University  of  Cambridge  and  inventors
Internet  personalisation
Targeted  adverts  and  product  recommendations
100% ANGLE plc  Annu Al Repo Rt And Accounts 2006
16
Aberro
A dramatic change in software testing
Automating software 
testing allowing improved 
productivity
OVERViEW
Aberro Inc is a software company that 
has produced a revolutionary method 
and product for testing software. 
Aberro’s technique of testing software 
called Adaptive Automated Testing 
requires no scripting, no programming 
and no test writing. Aberro’s flagship 
product, AberroTest, is patent pending 
and represents the next generation of 
software testing technology. Capable 
of being used early in the development 
cycle, it provides thorough automated 
testing in less time and at a fraction of 
the cost. AberroTest revolutionises the 
way development organisations 
functionally test software.
Backg ROUnd
Aberro Inc was formed in 2005 to 
commercialise novel concepts in 
software testing. The company’s 
product, AberroTest, was first released 
in December 2005 and subsequent 
versions have been released in 2006.
Ma Rk Et OPPORt Unity
The market for Automated Software 
Quality Tools is estimated to be over  
$1 billion in 2006 according to market 
research firm IDC. Software applications 
are orders of magnitude more powerful 
$1 billion
ESTIMATED GLOBAL MARKET  
FOR SOFTWARE TESTING 
and complex today than ever before, 
yet application test methods and tools 
have not changed significantly in years. 
According to the US National Institute  
of Standards & Technology (NIST),  
the lack of adequate software test 
infrastructure costs the US economy 
alone a staggering $60 billion a year. 
NIST reports potential savings in excess 
of $20 billion if better tools and methods 
are adopted. The key is to test earlier in 
the development process and to test 
more thoroughly.
PROg REss/acti Viti Es
The company has made strong progress 
since its inception. In that time, Aberro 
has launched with a full management 
team, led by CEO Doug Smith. The 
company released a GA (General 
Availability) version of the product and 
has begun generating revenue. Aberro 
recently completed a press and analyst 
tour which resulted in significant media 
and analyst coverage as well as a 
substantial increase in trial downloads of 
AberroTest. The company is expanding 
its sales efforts and will begin to seek 
third party investment later this year.
www.AberroSoftware.com ANGLE plc  Annu Al Repo Rt And Accounts 2006
17
Acolyte Biomedica
Faster diagnosis and treatment
Rapid detection  
of MRSA
Founded by ANGLE in 2000, Acolyte 
Biomedica addresses this critical issue. 
Its platform technology, BacLite
®
, 
slashes the lead time to diagnose and 
deliver successful antibiotic therapy from 
days to just five hours. It also delivers two 
other key benefits. First, its widespread 
application should reduce the spread of 
resistant organisms and, consequently, 
extend the life of available antibiotics. 
Second, it helps healthcare providers 
reduce costs by minimising hospital 
stays, cutting levels of secondary testing 
and facilitating continued use of less 
expensive antibiotics. 
BacLite
®
 is based on IP originally 
developed by the UK’s Porton Down based 
Defence Science & Technology Laboratory 
(Dstl). It benefits from 13 years’ investment 
by the UK’s Ministry of Defence in AK 
Rapid 
®
 diagnostics technology. This 
exploits the bioluminescent detection of 
Adenylate Kinase (AK) for ultrasensitive 
micro-organism detection. AK itself is a 
highly sensitive marker enzyme used to 
detect low levels of cell numbers such as 
biological warfare agents.
Ma Rk Et O PPORt Unity
The market ‘canvas’ for Acolyte’s 
proprietary diagnostic systems  
and research reagents in clinical 
microbiology is estimated today at  
$1.3 billion. In human terms this means, 
for example an estimated 140,000 UK 
MRSA infections and a staggering 5 
million MRSA tests (15 million in the US) 
per annum. As rapid testing is adopted 
for active surveillance, these levels will 
$1.3 billion
ESTIMATED GLOBAL MARKET FOR 
CLINICAL MICROBIOLOGY
almost certainly rise sharply. More 
broadly, BacLite
®
 is ideally positioned to 
address many established and 
emerging needs across the whole 
domain of life sciences. 
PROg REss
During the year Acolyte launched  
the BacLite
®
 flex hospital patient/staff 
MRSA screening system, resulting in the 
successful early adoption of the BacLite
®
 
flex screening system for routine patient 
screening in a number of private and 
NHS hospitals in the UK. In addition 
Acolyte has also won an extension of the 
exclusive worldwide licence for Acolyte’s 
core technology (AK Rapid
®
) into the 
fields of life science research, veterinary 
diagnostics and clinical and veterinary 
hygiene monitoring, as well as launching 
the BacLite
®
 RapiTECT™ range of life 
science research tools.
 
www.acolytebiomedica.com
OVERViEW
Acolyte Biomedica Ltd provides  
rapid diagnostic systems for clinical 
microbiology. Acolyte’s BacLite
®
 
platform allows microbial detection 
in hours instead of days, improving 
laboratory workflow, reducing hospital 
costs and improving management of 
microbial infections. The BacLite
®
 system 
is unique within infectious disease 
diagnostics, providing accelerated 
culture-based detection of micro-
organisms direct from clinical specimens.
Backg ROUnd
In the UK, the spread of MRSA has 
generated many headlines and created 
much controversy. It is, however, just 
one manifestation of a much broader 
global issue. Increasing resistance  
to antibiotics means that infectious 
diseases have re-emerged as a serious 
health issue across the world. In the UK 
alone, for example, hospital-acquired 
infections cause an estimated 5,000 
patient deaths per annum.
The problem of diagnosis is exacerbated 
greatly by the traditional manually-
intensive bacteriological process of 
culturing organisms. As a result, a long 
(two to four days) lead time is required for 
diagnosis. Worse: 45-90% of current 
provisionally-assessed broad spectrum 
antibiotic treatments are inappropriate. ANGLE plc  Annu Al Repo Rt And Accounts 2006
18
Geomerics
Film quality visuals for computer games
Geomerics is addressing 
the computer games and 
interactive entertainment 
industry, worth an 
estimated $22 billion  
per year
OVERViEW
Formed in 2005 by ANGLE, Geomerics 
brings together a team of leading 
academics from Cambridge University, 
and the US, assembling the world’s 
leading exponents of geometric algebra 
(GA) in a single company.
Geomerics develops commercial 
applications for GA – a sophisticated 
form of mathematics that vastly 
simplifies geometric operations, with 
the potential to revolutionise fields  
as diverse as computer gaming and 
electromagnetic modelling. 
Initially applied to theoretical physics, 
GA was subsequently developed by 
Geomerics to deliver state-of-the-art 
solutions to the complex geometry 
problems inherent in applications such 
as computer graphics. Geomerics has 
demonstrated its ability to perform  
the calculations involved many times 
faster. This performance offers games 
developers the ability to make a major 
step towards film quality visuals – the 
‘holy-grail’ for interactive entertainment. 
By allowing more complex operations  
to be run on less powerful processors 
Geomerics also has the potential to 
support powerful games on devices 
such as mobile phones.
Ma Rk Et OPPORt Unity
The revolutionary nature of Geomerics’ 
technology creates the opportunity to 
define and own a new graphics standard 
for the industry. Furthermore, it may be 
possible to influence chip design and 
thereby ensure that the benefits of 
$600 million 
ESTIMATED GRAPHICS TOOLS MARKET
Geomerics’ capabilities become  
‘hard wired’ to the future of the  
gaming industry.
The global gaming market is currently 
valued at around $22 billion and is 
projected to grow by a further $11 billion 
over the next five years. The graphics 
tools market – the sub-sector of gaming 
which Geomerics targets – is worth an 
estimated $600 million. 
The multi-sector applicability of the 
Geomerics technology provides related 
opportunities in other markets. For 
example, Geomerics has developed a 
proprietary solution that redefines the 
market for electromagnetic modelling 
software used in the defence and 
telecoms sectors.
PROg REss
During the year Geomerics has built  
up its team with a series of high level 
appointments, including an industry 
leading Technical Director from one  
of Europe’s largest independent  
games developers. Geomerics has  
now developed a portfolio of product 
applications, including a solution to  
one of the outstanding problems in  
the games industry – that of realistic 
‘soft’ lighting and shadowing.
www.geomerics.com ANGLE plc  Annu Al Repo Rt And Accounts 2006
19
InnoMatica
Reducing the problem of ’Vibration White Finger’
Vibration reduction and 
increased productivity
OVERViEW
Founded by ANGLE in 2006, InnoMatica 
has secured valuable IP that is set to 
revolutionise the $1.2 billion per annum 
global market for percussive power 
tools by reducing operator exposure to 
vibration. Vibration reduction is a major 
issue for tool users and manufacturers 
due to health concerns, litigation and 
recent legislation. Current solutions 
offer unsatisfactory reductions in 
vibration levels, often at the cost of tool 
productivity. InnoMatica breaks this 
design trade-off, significantly reducing 
vibrations and actually increasing 
productivity. Launched early in 2006, 
InnoMatica is already receiving positive 
reviews from the industry and is moving 
towards licensing its technology to 
major tool manufacturers.
Backg ROUnd
InnoMatica’s Variable Mass Technology 
(VMtechnology
TM
) has been developed 
over 10 years by a team of leading 
engineers and academics from the 
University of Cambridge.
VMtechnology
TM
 works through the 
rapid, bi-directional transfer of fluid 
between a reservoir within the tool  
and a separate, trolley-mounted  
vessel. The tool is therefore at its 
heaviest while working and at  
its lightest while handling.
VMtechnology
TM
 reduces tool vibration 
to a level that allows a single operator  
to use a powerful percussive power tool 
without any reduction in performance 
for up to four times longer than existing 
$1.2 billion
ESTIMATED GLOBAL MARKET FOR 
PERCu SSIVE POWER TOOLS
products. This not only removes the 
need for time limits or power reduction, 
but also provides the operator with a 
tool that is much safer and easier to use.
Ma Rk Et OPPORt Unity
Power tool users are seeking tools  
that offer significantly lower levels  
of vibration without a reduction in 
productivity. This issue is being driven 
by health concerns relating to excessive 
vibration, such as the debilitating 
medical condition Vibration White 
Finger (VWF). These concerns have  
led to both substantial litigation and 
new legislation.
In 2001, over 35% of employers’ liability 
insurance claims were for Hand Arm 
Vibration Syndrome (HAVS). The Health 
and Safety Executive estimates that 
there are around 300,000 sufferers  
in the UK of VWF, the most common  
form of HAVS, with around 2 million 
people regularly exposed to high levels 
of vibration. Costs of settling a single 
VWF claim can exceed £200,000. New 
European and UK legislation, introduced 
in 2005, now binds employers to specific 
limits on employee exposure to 
vibration in the workplace.
www.innomatica.com ANGLE plc  Annu Al Repo Rt And Accounts 2006
20
Kaloptics
Rapid capture and creation of photo-realistic images
Addresses a key limitation 
in the realism of special 
effects, animation and 
computer gaming
OVERViEW
Kaloptics Inc was founded by ANGLE  
in 2006 to commercialise an innovative 
hardware and software system that 
enables the rapid capture and recreation 
of photo-realistic textured surface images. 
This patent-pending solution provides  
a significant advancement over previous 
technologies in the speed and accuracy of 
data acquisition, which allows for greater 
productivity while reducing cost.
Backg ROUnd
Kaloptics technology originates from  
Dr Ken Perlin and Jeff Han of New York 
University’s Media Research Lab. Perlin 
is a professor in the Department of 
Computer Science at New York 
University, the founding director of its 
Media Research Lab (MRL), a prolific 
inventor, and the winner of an Academy 
Award for Technical Achievement for 
motion picture visual effects. Han is  
a long time researcher and prolific 
inventor who works closely with Perlin  
at the MRL. 
$multi billion
MARKET APPLICATION
Ma Rk Et O PPORt Unity
The technology has a wide range of 
commercial applications in multi billion 
dollar industries, including film special 
effects, animation, computer gaming, 
3D design, eCommerce and medical 
devices. The current approaches to 
producing photo-realistic images 
onscreen have not changed in many 
years, and are cumbersome and time 
consuming. Kaloptics’ solution is 
expected to dramatically improve  
the realism and accuracy of images.
PROg REss
Company efforts are focused on 
business planning and product strategy 
together with putting the building blocks 
in place for commercial launch later this 
year. Initial customer feedback has been 
very positive and customers are already 
requesting to use the product. ANGLE plc  Annu Al Repo Rt And Accounts 2006
21
NeuroTargets
Identifying and validating new drug targets
Specialising in diseases of 
nerve injury, drug targets 
to reduce pain and speed 
up nerve regeneration
$7 billion 
ESTIMATED Ex ISTING MARKET  
FOR PAIN TREATMENTS
OVERViEW
NeuroTargets was founded by ANGLE in 
1999 to commercialise original research 
carried out by a Bristol University team 
led by Professor David Wynick.
Backg ROUnd
NeuroTargets’ business model focuses 
on the co-development of novel 
therapeutic products with innovative 
mechanisms of action related to nerve 
injury. More than 100 different types  
of peripheral neuropathy have been 
identified, most of which are associated 
with neuropathic pain. Fifty per cent of 
diabetics have some degree of chronic 
neuropathic pain secondary to 
neuropathy. Diabetic peripheral 
neuropathy is the most common and 
difficult to treat diabetic complication 
accounting for more hospitalisations 
than all other diabetic complications 
combined, and responsible for 50-70% 
of non-traumatic amputations. Diabetes 
rates worldwide are expected to double 
from 171 million in 2000 to 366 million by 
2030 (American Diabetes Association).
Ma Rk Et O PPORt Unity
The existing global market for 
treatments targeted at nerve injury  
and pain is worth in the region of 
$7 billion with strong growth forecast  
in the sector. 
cURRE nt stat Us 
NeuroTargets’ research work has 
identified numerous gene targets that 
appear to be important for pain and has 
validated a number of these promising 
drug targets. The most advanced 
projects relate to the small GTP-binding 
protein Rho and the neuropeptide 
galanin – a peptide involved in the 
repair of the peripheral nervous system 
following injury. Galanin also acts to 
protect the central nervous system 
following stroke or disease. Gal-R2 has 
been identified by NeuroTargets as 
responsible for reducing pain, speeding 
up nerve regeneration and protecting 
the brain from injury. 
The co-development strategy involves 
sharing the cost of lead generation, pre-
clinical and early clinical development 
phases and in return the parties share 
rights to future milestone payments  
and royalties. This approach allows 
NeuroTargets to leverage its expertise 
in the identification and validation of 
drug targets, and pharmacological 
screening, in exchange for the partners’ 
chemistry competence, and means the 
company can limit costs.
NeuroTargets’ overall development 
programme has now reached the point 
where it requires significant additional 
funding to take it into clinical trials. 
Several options are currently being 
pursued which would deliver the 
financial support NeuroTargets is 
seeking but this is not yet in place. 
www.neurotargets.co.uk  ANGLE plc  Annu Al Repo Rt And Accounts 2006
22
Novocellus
Assessment of embryo viability in IVF
Improving IVF  
pregnancy rates
OVERViEW
Novocellus was established by ANGLE 
in 2004. The company’s objective is to 
commercialise a diagnostic technology 
developed by Professor Henry Leese at 
The University of York, which will for the 
first time enable the selection of the 
most viable pre-implantation human 
embryos for use in in-vitro fertilisation 
(IVF) infertility treatment. The Company 
and its scientific/medical advisors 
expect that this revolutionary and non-
invasive diagnostic technique could 
improve current IVF pregnancy rates 
(currently 15-22%) by 35-50%.
Backg ROUnd
Infertility is a growing problem driven by 
permanent changes in social behaviour 
and an ageing population. Currently the 
selection of viable human embryos for use 
in IVF relies on the somewhat subjective 
assessment of visual morphology. In 
addition and in part as a consequence, 
$1 billion 
IN ESTIMATED ADDRESSABLE  
MARKET BY 2010
IVF conception and live birth rates are low. 
This means that embryologists feel it 
necessary to transfer up to three embryos 
and sometimes more in order to achieve 
conception rates of just 15-22%. The 
downside of multiple embryo transfer is 
the much higher risk of twin and triplet 
births. This puts the mother at risk and 
results in much higher incidence of 
perinatal mortality and birth defects.  
It is estimated that dealing with these IVF 
related issues costs in excess of $1.3 billion 
per annum in Europe and the US. 
The Novocellus technique is based  
on assessing the profiles of 18 amino 
acids, to determine the developmental 
competence of embryos and hence the 
likelihood of a particular embryo leading 
to a successful pregnancy.
Ma Rk Et siz E OPPORt Unity
It is estimated that more than 750,000 
‘fresh’ IVF cycles are performed 
worldwide each year and that this 
number is increasing at around 15% per 
annum. The annual number of IVF cycles 
is therefore projected to increase to 
around 1.3 billion by 2010. In addition, 
there is thought to be significant latent 
potential for IVF treatment that will be 
accessible for the first time as a result  
of Novocellus’ diagnostic. Given the 
anticipated growth in the market, 
estimates suggest that the worldwide 
revenue opportunity for Novocellus by 
2010 will be nearly $1 billion.
cURRE nt stat Us 
A multi-centre clinical study of the 
Novocellus process involving 400 IVF 
cycles is currently under way. This 
retrospective cohort study will primarily 
assess the utility of the Novocellus 
process in twin embryo transfer. A 
supplemental arm of the study will 
capture data on a small number of single 
embryo transfers. The study is expected 
to be completed by early 2007 when 
Novocellus or a commercial partner  
will apply for CE marking and regulatory 
approval as required in the major  
world markets. 
www.novocellus.com ANGLE plc  Annu Al Repo Rt And Accounts 2006
23
Parsortix
n on-invasive pre-natal diagnostic
Separating foetal cells 
from maternal blood
OVERViEW
Parsortix Inc was founded by ANGLE  
in 2006 to commercialise technology 
designed to separate objects at the 
micro level. As a first application of  
this technology, Parsortix will develop  
a device that will assist in pre-natal 
diagnostics. This device will enable, 
without the trauma associated with 
amniocentesis or chorionic villus 
sampling (CVS), the collection of foetal 
cells from the maternal bloodstream  
for the detection of Down’s syndrome 
and other diseases associated with 
chromosomal abnormalities. The 
technology may also have applications  
in bone marrow transplant therapy 
during cancer treatment.
Backg ROUnd
This technology was developed to  
aid in the collection of cells for genetic 
analysis. However, it was recognised  
that the technology may provide an 
approach to the collection of foetal  
cells from maternal blood. Parsortix  
has experimentally demonstrated  
that foetal cells can be isolated from 
maternal blood using this technology. 
Future pre-natal diagnostic technologies 
will also be able to use these cells for 
markers of genetic diseases. The 
technology is easy to use, and should 
provide a cost effective way to separate 
cells, not just for pre-natal diagnosis,  
but for other diagnostic and therapeutic 
applications. ANGLE identified this 
technology through its collaboration 
with the Ben Franklin Technology 
Partners of Southeastern Pennsylvania.
Ma Rk Et OPPORt Unity
There are some 6 million pregnancies 
annually in the US with 4.5 million live 
births. Approximately 300,000 women 
proceed to have an amniocentesis or 
CVS procedure performed. These 
procedures collect foetal cells for the 
diagnostic test. Because Parsortix’s 
technology enables the collection of 
foetal cells in a non-invasive manner,  
we believe that Parsortix’s technology 
can replace the current method of 
blood tests which precede the 
amniocentesis as well. The foetal cell 
collection can be performed in the  
first trimestre, thus permitting earlier 
diagnosis of potential problems which, 
in turn, will provide for better care of the 
mother and unborn infant. This will save 
time and money by proceeding directly 
to the diagnostic test for birth defects 
due to chromosomal abnormalities  
and will allow expansion of routine 
testing since the risk and trauma of 
amniocentesis testing is removed.
PROg REss/acti Viti Es
Parsortix will be working with leading 
geneticists and obstetric and 
gynaecological experts to develop this 
technology. Parsortix is assembling a 
team of technologists, scientists and 
business development specialists  
to assist in the development of its 
technology. It is anticipated that 
Parsortix will begin clinical testing in 
early 2007 and will be seeking market 
approval in 2008.  ANGLE plc  Annu Al Repo Rt And Accounts 2006
24
Natural heart health 
product
OVERViEW
Provexis was established by ANGLE in 
2000 to develop and license a range  
of scientifically-tested products based 
on natural, bioactive ingredients. The 
first product is a functional fruit juice 
aimed at the preventative health market 
and is available at major supermarkets 
including Tesco, Waitrose and Morrisons. 
Provexis listed on AIM in June 2005 
through a reverse takeover of 
Nutrinnovator Holdings plc.
Backg ROUnd
Almost half of all deaths in Europe are a 
result of circulatory disease, including, 
heart attack and stroke. As the finger of 
blame for the rise in such conditions points 
to poor diet, the market is looking for 
natural solutions that counteract this trend.
In response, Provexis developed Sirco
®
,  
a fruit juice that contains a patented 
bioactive extract of tomato that inhibits 
platelet aggregation. Within just three 
hours of consumption a noticable effect 
is observable, reducing the risk of 
thrombosis which underpins heart attack 
and stroke. This gives Sirco
®
 elite status 
as one of only a few products available in 
supermarkets to carry a scientifically 
substantiated health claim: ‘Helps 
maintain a healthy heart and benefit 
circulation’.
In an increasingly health-conscious 
society looking for products which  
are both effective and natural in origin, 
Provexis aims to develop further novel, 
patented active food components for 
integration into innovative functional 
foods and beverages. These 
development programmes are typically 
undertaken in partnership with leading 
academic research establishments and 
always aim to develop products that have 
a health benefit which is both clearly 
defined and scientifically proven.
Ma Rk Et OPPORt Unity
A Mintel report published in August 2005 
estimated the market for heart healthy 
products was worth $18 billion per annum 
in the US alone. This market is forecast to 
grow by 16% by 2010.
In addition, a number of further products 
are in the pipeline. These include a 
plantain extract which will underpin  
a novel medical food for the dietary 
management of Inflammatory Bowel 
Disease and a beverage containing a 
proprietary vegetable extract designed  
to reduce the risk of specific cancers.
PROg REss
During the early part of the year Provexis 
completed a reverse acquisition of 
Nutrinnovator Holdings plc, in the process 
securing additional funding and making  
its debut on AIM. Early 2006 saw the 
launch of the Sirco
®
 fruit juice and the 
announcement of a number of distribution 
deals with major UK supermarkets. In 
addition, the bioactive extract found  
in Sirco
®
 has been affirmed to be  
Generally Regarded as Safe (GRAS)  
by an independent Expert Panel in  
the US, paving the way for products 
containing it to be marketed  
in the US and Canada.
www.provexis.com
$18 billion 
PER ANNu M ESTIMATED MARKET FOR 
HEART HEALTHY PRODu CTS IN u S
Provexis
l ead product sirco
®
 launched in major uK supermarkets ANGLE plc  Annu Al Repo Rt And Accounts 2006
25
$1 billion 
ESTIMATED ADDRESSABLE MARKET  
FOR SYNATu RE BY 2008
Automatic customer segmentation for on-line sales and 
marketing companies
At the same time total internet usage is 
beginning to saturate as more than 50% 
of the population of the industrialised 
world are now internet users. So on-line 
marketers must increasingly seek future 
growth by competing more effectively 
for the same finite audience, rather than 
relying on increasing internet penetration 
to drive automatic year-on-year sales 
increases.
Tools such as Synature’s, allowing 
improved marketing effectiveness by 
delivering the right message to the right 
person, are of critical importance to the 
forward-looking online marketer.
Ma Rk Et O PPORt Unity
Synature creates value by allowing  
on-line marketers to engage their target 
customers more successfully. For 
example, many existing websites feature 
product recommendation systems 
based on ‘collaborative filtering’ and 
similar technologies. These systems 
often have conversion rates of just a few 
per cent, yet still generate millions of 
dollars in sales revenue for their 
operators. By linking psychological 
information to the sales data and 
traditional demographics used for 
current recommendation systems, 
Synature allows marketers to increase 
conversion rates and so make more 
sales to the same customers.
We estimate an addressable market size 
of $1 billion for Synature by 2008.
PROg REss 
During this year Synature has 
successfully recruited a leading  
internet marketing specialist as CEO 
and further strengthened the Company’s 
intellectual reach by developing 
advisory relationships with the University 
of Cambridge, and with a number of 
expert psychological practitioners.
Synature’s intellectual property has 
undergone successful internal technical 
validation and has now been used to 
build a first-generation commercial 
software product – ‘qubox’. This is 
packaged as a software service (ASP) 
allowing simple and rapid integration 
into a client’s web infrastructure.  
The system is currently undergoing  
beta testing with three separate  
early access partners to be followed  
by a full commercial launch of the  
‘qubox’ system.
www.synature.com
OVERViEW 
Synature was created by ANGLE in early 
2005 to commercialise IP developed by a 
Cambridge-based team which offers a 
new approach to online target marketing. 
Synature’s technology allows it to gain 
insight into the psychology of each 
individual on-line visitor and to use that 
information to make personalised 
product recommendations or to deliver 
other targeted content. In each case the 
content reflects the individual emotions 
and attitudes of the web user.
Backg ROUnd
The on-line marketing industry is both fast-
growing and increasingly competitive. 
Annual expenditure on search engine 
marketing, banner advertising, email 
marketing and so on is today measured in 
the tens of billions of dollars and continues 
to grow, driven by the increasing success of 
internet business models and a growing 
switch of off-line advertising budgets into 
the online channel.
Personalised product 
recommendations online
Synature ANGLE plc  Annu Al Repo Rt And Accounts 2006
26
Board of Directors
h anc E FUll ERt On OBE
c hai RMan
Hance Fullerton has a BSc in Chemistry 
and from 1958 to 1976 he held technical, 
production and senior operational 
management positions in the paper 
industry with three international paper 
groups at Aberdeen, London, Fort 
William and Fife. From 1976 to 1981 
Hance was a General Manager of 
Wiggins Teape Limited before 
becoming Divisional Director of 
Industrial Intermediates at their 
headquarters. He was appointed as 
General Manager of the Grampian 
Health Board in 1986 and Chief 
Executive of Grampian Enterprise 
Limited from 1991 to 1996. He is the 
former Chairman of Grampian University 
Hospitals NHS Trust and AURIS (the 
Aberdeen University commercialisation 
company). From 1996 to 1999, he was 
the Chairman of Cordah Limited, an 
environmental technology company, 
which he chaired from its creation  
as a joint venture between Scottish 
Enterprise Grampian, the University of 
Aberdeen and other Grampian Higher 
Education Institutes to its eventual sale 
to British Maritime Technology Limited.  
In 1995, Hance was awarded an OBE for 
Services to Industry and an LLD by the 
University of Aberdeen. Hance joined 
ANGLE as a Director in 1996.
a nd REW d W nEW land
c hi EF Ex Ec Uti VE
Andrew Newland is the founder of 
ANGLE and Group Chief Executive. He 
has an MA in Engineering Science from 
the University of Cambridge, and is a 
qualified Chartered Accountant. After 
working with the engineering 
conglomerate, TI plc, he worked for 
KPMG from 1982 to 1994; from 1985 to 
1987 he was based in the US as a 
manager providing corporate finance 
and business advice to high technology 
firms in the area around Route 128, 
Boston, Massachusetts. From 1987 to 
1994 he worked for KPMG in the UK with 
responsibility for establishing KPMG’s 
UK and European High Technology 
Practices and High Technology 
Consulting Group. Andrew founded 
ANGLE in 1994. Together with ANGLE’s 
senior management team, since 1999 
Andrew has founded and led five other 
technology companies in partnership 
with world class research organisations, 
both in the UK and the US. Andrew has 
been instrumental in developing and 
then delivering the business proposition 
for these companies, building 
management teams, raising finance  
and securing revenues.
ian F gR iFFiths
Financ E d iREct OR 
Ian Griffiths has a BSc in Mathematics 
with Management Applications from 
Brunel University and is qualified as  
a Chartered Accountant. For seven  
years he worked for KPMG, initially in 
accountancy (1986 to 1990), then in 
management consulting (1990 to 1993) 
within KPMG’s High Technology Practice 
and High Technology Consulting Group 
where he specialised in financial 
modelling, business planning, corporate 
finance, market development and 
strategy work. As well as leading the 
finance function at ANGLE, he has been 
closely involved with the development 
and delivery of the UK, US and Middle 
East Consulting and Management 
businesses and  
in developing new Ventures and 
supporting Progeny
®
 companies.  
After a career break, Ian joined  
ANGLE in 1995.
da Vid W Q Uysn ER
nO n- Ex Ec Uti VE d iREct OR
David Quysner has an MA from the 
University of Cambridge. He began  
his career at ICFC (now known as 3i)  
in 1969. In 1982, he joined Abingworth 
Management Limited, a venture capital 
fund management company, and 
became its Managing Director in 1994 
and its Chairman in 2001. David was 
Chairman of the British Venture Capital 
Association in 1996/97. David has served 
and is also currently on the boards of 
numerous companies and is the 
chairman of Finsbury Technology Trust 
plc and the Capital for Enterprise Board, 
a DTI appointment. He was a member of 
the Stock Exchange Smaller Companies 
Working Party, which led to the creation 
of London’s AIM market. More recently, 
he was a member of the Treasury 
Working Party on the Financing of High 
Technology Companies and of the 
University Challenge Fund Committee. 
David joined ANGLE in 2004.
FROM  LEFT  TO  RIGHT:
HANCE  FULLERTON,  ANDREW  NEWLAND,  IAN  GRIFFITHS  AND  DAVID  QUYSNER ANGLE plc  Annu Al Repo Rt And Accounts 2006
27
The Directors present their Annual Report and Financial 
Statements for the year ended 30 April 2006 for ANGLE plc  
(the ‘Company’) and its subsidiaries (the ‘Group’). The Annual 
Report includes two voluntarily prepared statements; the 
Corporate Governance Report and the Remuneration Report.
The Directors who held office as at the date of approval of this 
Directors’ Report confirm that, so far as they are each aware, 
there is no relevant audit information of which the Company’s 
auditors are unaware, and each Director has taken all the steps 
that they ought to have taken as a Director to make themselves 
aware of any relevant audit information and to establish that the 
Company’s auditors are aware of that information.
Princi Pal activities 
The principal activity of the Company is that of a holding 
company. ANGLE Group is an international venture 
management and consulting business focusing on the 
commercialisation of technology and the development  
of technology-based industry. ANGLE creates, develops  
and advises technology businesses on its own behalf and  
for its clients.
r eview of the business and Pros Pects
The Chairman’s Statement, Chief Executive Officer’s review, 
Financial review and Investment Portfolio review (on pages 4 
to 25) report on the Group’s performance during the past 
financial year and its prospects.
The information that fulfils the requirements of the Business 
Review can be found in the Chief Executive Officer’s review 
and Financial review on pages 6 to 11. These are incorporated 
into this report by reference.
r esults and dividends
The Consolidated income statement for the year is set out on 
page 36. 
The Group made a loss on ordinary activities of £2,525,717 
(2005: loss £2,885,927), which has been transferred to reserves.
The Directors do not recommend the payment of a dividend 
for the year (2005: £nil). It is the Board’s policy to invest 
retained earnings in order to develop new Progeny
®
 
companies. The Board periodically reviews the Company’s 
dividend policy in the context of its financial condition and in 
the light of any realisations on disposal of equity stakes.
r esearch and develo Pment
Expenditure on research and development incurred by 
controlled investments that have been consolidated into the 
Group results as subsidiaries under the acquisition method of 
accounting amounted to £674,863 in the year (2005: £26,212). 
All other investments have continued to undertake substantial 
research and development activities during the year.
Pro Perty, Plant and equi Pment
The changes in property, plant and equipment during the year 
are explained in Note 12 to the Financial Statements.
d irectors and their interests
The following Directors have held office since 1 May 2005:
C D Buck (Resigned 31 July 2005)
H Fullerton
I F Griffiths
A D W Newland
D W Quysner
I G Ross (Resigned 31 March 2006)
The Directors’ interests, including beneficial interests, in the 
ordinary shares and share options of the Company are shown 
in the Remuneration Report on pages 32 to 34.
significant shareholdings
In addition to the Directors’ interests shown on pages 32 to 33, 
the following shareholders had interests in 3% or more of the 
Company’s ordinary share capital at 21 July 2006:
  Holding
Name Number of shares %
FMR Corporation & Fidelity  
Investment Managers 2,658,227 9.80
RAB Capital plc 2,428,500 8.95
Framlington Investment Management 1,429,325 5.27
Aidan Waine Esq 1,303,207 4.80
Invesco Asset Management 1,145,651 4.22
Metage Funds 976,424 3.60
Cazenove Fund Management 943,809 3.48
Aerion Fund Management 833,357 3.07
r isk management
Details of the Group’s financial risk management objectives and 
policies are disclosed in Note 14 to these Financial Statements.
 
su PPlier Payment Policy
It is Group policy to communicate clearly and agree the terms 
of payment at the start of business with suppliers and to pay  
in accordance with the agreed terms of the contract and other 
legal obligations. Where no contract terms are specified, then 
assuming suppliers have met their obligations, the policy is to 
pay within 30 days of receipt of a correct invoice. The Group 
supports and endeavours to follow the Better Payment 
Practice Group guidelines. The Group had 33 days’ purchases 
outstanding for payment at 30 April 2006 (2005: 32 days), 
based on the average daily amount invoiced by suppliers 
during the year. The Company had no trade creditors at  
30 April 2006 (2005: £nil).
c haritable and Political donations
The Group made charitable donations during the year of £nil 
(2005: £348). The Group made no political donations during 
the year (2005: £nil).
Directors’ report
 for the year ended 30 a Pril 2006  ANGLE plc  Annu Al Repo Rt And Accounts 2006
28
d irectors’ res Ponsibilities
The Directors are responsible for preparing the Annual Report 
and the Financial Statements in accordance with applicable 
law and International Financial Reporting Standards (IFRS) for 
the Group and UK General Accepted Accounting Principles 
(GAAP) for the Company. Company law requires the Directors 
to prepare Financial Statements for each financial year which 
give a true and fair view of the state of affairs of the Company 
and of the Group and of the profit or loss of the Group for that 
period. In preparing those Financial Statements, the Directors 
are required to:
select suitable accounting policies and then apply  
them consistently;
make judgements and estimates that are reasonable  
and prudent;
state whether applicable accounting standards have been 
followed, subject to any material departures disclosed and 
explained in the Financial Statements; and
prepare the Financial Statements on the going concern 
basis unless it is inappropriate to presume that the Group 
will continue in business.
The Directors are responsible for keeping proper accounting 
records which disclose with reasonable accuracy at any time 
the financial position of the Company and the Group and to 
enable them to ensure that the Financial Statements comply 
with the Companies Act 1985. They are also responsible for 
safeguarding the assets of the Company and the Group and 
hence for taking reasonable steps for the prevention and 
detection of fraud and other irregularities. The Directors are 
also responsible for preparing the Directors’ Report and other 
information in the Annual Report in accordance with company 
law in the United Kingdom.
The Directors are responsible for the maintenance and 
integrity of the Group’s website. Information published on the 
website is accessible over the Internet in many countries. The 
Group’s website is based on meeting the legal requirements 
for the United Kingdom and not to meet the different legal 
requirements relating to the preparation and dissemination  
of financial information in other countries. 
‡
‡
‡
‡
Directors’ report continued
 for the year ended 30 a Pril 2006 
g oing concern
The Directors’ review of the accounts, budgets, sales pipeline, 
costs and forward plans and cash flow analysis, lead the 
Directors to believe that the Group has sufficient resources to 
continue in operation for the foreseeable future. The Financial 
Statements are therefore prepared on a going concern basis.
a uditors
In accordance with Section 385 of the Companies Act 1985,  
a resolution proposing that Baker Tilly be reappointed  
as auditors of the Company will be put to the Annual  
General Meeting.
a nnual g eneral meeting
The Annual General Meeting of the Company will be held  
at 2:00 pm on 7 September 2006 at ANGLE’s offices, Surrey 
Technology Centre, The Surrey Research Park, Guildford,  
GU2 7YG. The notice of meeting is enclosed with this report.
By order of the Board
a d w n ewland
26 July 2006 ANGLE plc  Annu Al Repo Rt And Accounts 2006
29
Corporate governance report
c om Pliance with the c ombined c ode
The Company’s shares were admitted to trading on the 
Alternative Investment Market (AIM) of the London Stock 
Exchange on 17 March 2004. AIM listed companies are not 
required to comply with the disclosures of the Combined 
Code (2003) of Corporate Governance. However, the Board 
supports the principles contained in the Combined Code  
and is committed to maintaining the highest standards  
of Corporate Governance. In respect of the year ended  
30 April 2006 the Board has sought to comply with the 
provisions of the Combined Code in so far as it considers 
them to be appropriate to a company of its size, nature and 
structure, and has explained any areas of non-compliance with 
those provisions. 
Below is a brief description of the Board, its role and its 
committees followed by details of the Group’s systems of 
internal control.
board of d irectors
The Board of Directors has overall responsibility for the proper 
management of the Group. Its aim is to provide leadership 
and control in order to ensure the growth and development of 
a successful business, while representing the interests of the 
Company’s shareholders.
The Board currently comprises the Chairman, one Non-
executive and two Executive Directors and is responsible to 
shareholders for the governance of ANGLE plc and for the 
effective operation and management of the Group. Although 
this is non-compliant with the Combined Code, the Board 
believes it offers an appropriate solution until an additional 
non-executive is recruited. Different Directors hold the roles  
of Chairman and Chief Executive Officer and there is a clear 
division of responsibilities between them. The Chairman is 
responsible for overseeing the running of the Board, ensuring 
that no individual or group dominates the Board’s decision 
making and ensuring that the non-executive Directors are 
properly briefed on matters. The Chief Executive Officer has 
responsibility for implementing the strategy of the Board and 
managing the day-to-day business activities of the Group 
through his management of the Executive Directors and senior 
managers. Individual directors possess a wide variety of skills 
and experience and biographical details of the directors are 
set out on page 26.
The Non-executive Director is considered by the Board to be 
independent of management and free of any relationship 
which could materially interfere with the exercise of his 
independent judgement. The Board considers that the Non-
executive Director is of sufficient calibre to bring the strength 
of independence to the Board. The Board has not nominated 
a Senior Independent Director, as recommended in the 
Combined Code, as there is currently only one non-executive 
director and in any case it believes issues can be raised 
through the normal channels of the Chairman, Chief Executive 
Officer and Finance Director and where necessary the Non-
executive can be approached directly.
Management supply the Board with appropriate and timely 
information. All Directors are able to take training and/or 
independent professional advice in the furtherance of their 
duties if necessary. All Directors also have access, at the 
Company’s expense, to experienced legal advice through the 
Company’s legal advisors and other independent professional 
advisors as required.
The Board has at least eight meetings per year with additional 
special meetings as required. As well as regularly reviewing 
trading performance and significant risks, the Board has a 
schedule of matters specifically reserved to it for decision, 
including the review and approval of:
Group policy and long term plans and strategy for the 
profitable development of the business;
interim and annual Financial Statements;
major investments and divestments;
other significant financing matters such as acquisitions  
and capital item purchases;
annual budgets and amendments; and
senior executive remuneration and appointments.
In addition certain other responsibilities have been delegated 
to the Committees of the Board, each of which has clearly 
defined terms of reference (available from the Company 
Secretary or website).
board effectiveness and evaluation
The Company supports the concept of an effective Board 
leading and controlling the Company. The Board therefore 
undertakes an annual evaluation of its performance, its 
Directors and its committees. The review, led by the Chairman, 
involves each Board member providing:
an evaluation of performance of the Board as a whole 
against a series of criteria, the summary of which is used  
as the basis for a collective discussion;
an evaluation of the effectiveness of individual members  
of the Board, the summary of which is used as the basis  
for individual discussion between the Chairman and the 
Director concerned; and
an evaluation of the effectiveness of the Chairman,  
the summary of which is used as the basis for individual 
discussion between the Non-executive Director and  
the Chairman.
The results of the evaluation have led to a number of specific 
actions to improve certain areas.
service contracts and letters of a PPointment
The two Executive Directors have service contracts with  
the Company dated 9 March 2004 and effective from  
17 March 2004. The contracts are not set for a specific 
term, but include a rolling 12-month notice period by  
the Company or the individual.
The Chairman and Non-executive Director have letters of 
appointment dated 9 March 2004 and effective from 17 March 
2004. These letters are issued in place of service contracts. 
These appointments are not set for a specific term and are 
terminable at will without notice by either party.
election
Under the Company’s Articles of Association, newly appointed 
Directors are required to resign and seek re-election at the 
first Annual General Meeting following their appointment, and 
all Directors are required to seek re-election at intervals of no 
more than three years. Directors were deemed new following 
the flotation and accordingly retired and were re-elected  
by the shareholders at the Annual General Meeting held  
on 23 September 2004. Accordingly no directors are seeking 
re-election this year.
‡
‡
‡
‡
‡
‡
‡
‡
‡ ANGLE plc  Annu Al Repo Rt And Accounts 2006
30
c ommittees of the board
The Board maintains Nominations, Audit and Remuneration Committees. All committees operate with written terms of 
reference. Their minutes are circulated for review and consideration by the full Board of Directors, supplemented by oral  
reports on matters of particular significance from the Committee Chairmen at Board Meetings.
The revised Combined Code relaxed the requirement to have three Non-executive Directors on the Audit and Remuneration 
committees to two. On 26 May 2005 Hance Fullerton stepped down from his role as a member of the Audit and Remuneration 
Committees, reflecting the fact that he would not be considered independent under the provisions of the Code. In March  
2006 Iain Ross notified the Company of his intention to stand down. On 29 March 2006 Hance Fullerton was reappointed to the 
Audit and Remuneration Committees as the Board believed it was inappropriate to only have one Member on the Audit and 
Remuneration Committees. Although this is non-compliant with the Combined Code the Board believes it offers an appropriate 
solution until an additional non-executive director is recruited.
The following committees assist the full Board in the exercise of its responsibilities by dealing with specific aspects of the Group’s affairs:
a udit committee
The members of the committee are the Non-executive Director, David Quysner (Chairman of the Audit Committee) and 
Chairman, Hance Fullerton, and it meets at least three times a year to review the interim and annual accounts before they are 
submitted to the Board. The external auditors, Finance Director and Chief Executive may attend by invitation. Provision is made 
to meet with the auditors at least once a year without any executive Director present.
The committee has adopted formal terms of reference and considers financial reporting, corporate governance and internal 
controls. Its review of financial reporting includes discussion of major accounting issues, policies and compliance with generally 
accepted accounting standards, review of key management judgements and estimates, review of management’s risk assessment 
and risk management activities and going concern assumptions. It also reviews the scope and results of the external audit  
and the independence and objectivity of the auditors and makes recommendations to the Board on issues surrounding their 
remuneration, appointment, resignation or removal. During the year the Audit Committee determined to adopt International 
Financial Reporting Standards (IFRS) early for the Group financial statements and adopted a Risk Register. The Audit Committee 
is also responsible for monitoring the provision of non-audit services provided by the Group’s Auditors and assesses the likely 
impact on the auditors’ independence and objectivity before awarding them any material contract for additional services.
r emuneration committee
The members of the committee are the Chairman, Hance Fullerton (Chairman of the Remuneration Committee) and the Non-
executive Director David Quysner, and it meets at least twice a year. None of them has any personal financial interest in the 
matters to be decided (other than as shareholders), potential conflicts of interest arising from cross directorships nor any day-to-
day involvement in running the business. The Chief Executive and Finance Director may attend by invitation but are not present 
when matters affecting their own remuneration arrangements are considered.
The committee has adopted formal terms of reference and the committee reviews and sets the remuneration and terms and 
conditions of employment of the Executive Directors and senior management. It also agrees a policy for the salaries of all staff 
and has been responsible for the development of the Company’s remuneration scheme. The decisions of the Committee are 
formally ratified by the Board. 
Details of Directors’ remuneration and service contracts together with Directors’ interests are shown in the Remuneration Report 
on pages 32 to 34.
n ominations committee
On 25 May 2005, the Board resolved to establish a Nominations committee. The members of the Committee are Hance Fullerton 
(Chairman and Chairman of the Nominations Committee) and the Non-executive Director David Quysner, and it meets at least 
twice a year. The Chief Executive and Finance Director may attend by invitation. 
 
The Committee has adopted formal terms of reference and is responsible for reviewing the structure, size and composition of 
the Board and for recommending to the Board suitable candidates for both executive and non-executive Board appointments.
d irectors’ attendance
Directors’ attendance at Board and Committee meetings during the year ended 30 April 2006 is set out below.
    Hance David  Andrew Dawson 
     Fullerton Quysner Iain Ross Newland Buck Ian Griffiths
Board    11 / 11 10 / 11 7 / 10 11 / 11 2 / 2 11 / 11
Audit    1 / 1 6 / 6 5 / 6 n/a n/a n/a
Remuneration    1 / 1 8 / 8 7 / 7 n/a n/a n/a
Nominations    2 / 2 2 / 2 1 / 1 n/a n/a n/a
Scoring represents individual Directors’ attendance for those meetings when they were members of the Board or Committee.
Corporate governance report continued ANGLE plc  Annu Al Repo Rt And Accounts 2006
31
internal controls
Internal control systems are designed to meet the particular needs of the Group and the risks to which it is exposed, and by their 
nature can only provide reasonable but not absolute assurance against material misstatement or loss. The system of internal 
control is designed to manage the risk of failure to achieve business objectives, rather than to eliminate it. 
An internal audit function is not considered necessary or practical due to the size of the Group and the close day-to-day control 
exercised by the Executive Directors and senior management. The Board will continue to monitor the requirement to have an 
internal audit function.
The key procedures that the Directors have established with a view to providing an effective system of internal control are  
as follows:
management structure
The Board has overall responsibility for the Group and focuses on the overall Group strategy and the interests of shareholders. 
There is a schedule of matters specifically reserved for decision by the Board. The Board has an organisational structure with 
clearly-defined responsibilities and lines of accountability and each Executive Director has been given responsibility for specific 
aspects of the Group’s affairs.
q uality and integrity of Personnel
The integrity and competence of personnel are ensured through high recruitment standards and subsequent training courses. 
High quality personnel are seen as an essential part of the control environment.
identification of business risks
The Board is responsible for identifying the major business risks faced by the Group and for determining the appropriate course 
of action to manage those risks. The Audit Committee also considers and determines relevant action in respect of any control 
issues raised by the auditors.
budgets and re Porting
Each year the Board approves the annual budget which includes an assessment of key risk areas. Performance is monitored and 
relevant action taken throughout the year through regular reporting to the Board of variances from the budget and preparation 
of updated forecasts for the year together with information on the key risk areas. Underpinning these budgets is a system of 
internal financial control, based on authorisation procedures and tiers of authority.
investment and divestment a PPraisal
All material investment and divestment decisions require appraisal, review and Board approval.
During the year the Board reviewed the effectiveness of the Group’s systems of internal controls and has a process for the 
continuous identification, evaluation and management of the significant risks the Group faces. Assessment considers the 
external environment, the industry in which the Group operates, the internal environment and non-financial risks such as 
operational and legal risks. The risks identified are ranked based on significance and likelihood of occurrence. The Board reviews 
the controls in place to mitigate those risks and improvements are made where required. A number of improvements have been 
made in the year and others have been identified and are being progressed. Day-to-day responsibility for effective internal 
control and risk monitoring rests with senior management.
shareholder relations
The Company seeks to maintain and enhance good relations with its shareholders and analysts. The Company’s and Group’s 
Interim and Annual Reports are supplemented by regular published updates to investors on commercial progress. All investors 
have access to up-to-date information on the Group via its website, www.ANGLEplc.com, which also provides contact details for 
investor relations queries, details on the Company’s share price, share price graphs and share trading activity. The Company also 
distributes Group announcements electronically. Shareholders and other interested parties wishing to receive announcements 
via email are invited to sign up to the ‘Email alerts’ facility on the Company’s website.
The Directors seek to build on a mutual understanding of objectives between the Company and its shareholders, especially 
considering the specialist and medium term nature of the business. Institutional shareholders, private client brokers and analysts 
are in contact with the Directors through a regular programme of briefing presentations and meetings to discuss issues and give 
feedback, primarily following the announcement of the interim and preliminary results, but throughout the year as required. The 
Board also receives formal feedback through the Company’s stockbroker and financial PR firms.
All shareholders are invited to make use of the Company’s Annual General Meeting (AGM) to raise any questions regarding the 
strategy, management and operations of the Group. The Chairmen of the Nominations, Audit and Remuneration Committees 
are available to answer any questions from shareholders at the AGM. ANGLE plc  Annu Al Repo Rt And Accounts 2006
32
Remuneration report 
The Company is not required by either the Listing Rules or  
the Companies Act to produce a remuneration report, but  
has done so because of its commitment to maintaining  
the highest standards of Corporate Governance. The 
Company’s remuneration policy is the responsibility of  
the Remuneration Committee.
r emuneration Policy
The Company’s policy on remuneration is to attract, retain and 
incentivise the Directors and staff in a manner consistent with  
the goals of good corporate governance. In setting the Company’s 
remuneration policy, the Remuneration Committee considers  
a number of factors including the basic salary, incentives and 
benefits available to executive Directors, senior managers  
and staff of comparable companies. Consistent with this policy 
the Company’s remuneration packages awarded to executive 
Directors and senior management are intended to be competitive, 
comprise a significant proportion of performance related 
remuneration and align employees with shareholders’ interests. 
In 2005, the Remuneration Committee commissioned KPMG 
(UK) LLP to conduct an independent review of executive 
remuneration arrangements and make recommendations 
for improvement. Following the review the Company is 
introducing a Deferred Annual Bonus Plan and a Venture 
Investment Plan.
basic salary and benefits
Salary levels are reviewed annually. The Committee believes 
that basic pay should be competitive in the relevant 
employment market and reflect individual responsibilities  
and performance. Medical health insurance and life cover 
benefits are also provided to employees and in addition US 
employees have dental insurance and a defined contribution 
pension scheme. 
d eferred a nnual bonus Plan
The aim of the Deferred Annual Bonus Plan is to incentivise 
employees to achieve stretching annual performance  
targets and to align short term performance with long term 
shareholder interests by encouraging employees to defer 
bonuses into ANGLE plc shares.
Bonus targets under the plan are linked to Group and/or 
Business Unit profitability, operational performance and 
individual performance. The Remuneration Committee 
establishes the targets which must be achieved by Directors  
in order to receive a payment and these are reviewed annually. 
Directors and other senior management are required  
to compulsorily defer 50% of any earned bonus into  
ANGLE plc shares for a further three years subject to 
continued employment over the period. Additionally 
individuals have the opportunity to voluntarily defer any of 
their remaining bonus into shares, and receive one free 
matching share for each voluntarily deferred share at the end 
of the three year period. 
All employees in the company are eligible to participate to 
some extent in the plan though the bonus potential and 
performance targets reflect the seniority and responsibility  
of the individual. 
v enture investment Plan 
Executive Directors, regional chief executives and venture 
team staff are eligible to participate in the Venture Investment 
Plan. The aim of the plan is to provide a long term incentive 
linked to the realised cash gains from the Ventures business.
The level of bonus received by participants is a function of  
the cash profits realised from the Ventures business and the 
number of participation points an individual has earned. The 
cash profits are determined after recovering all ventures costs 
and achieving a hurdle rate.
share o Ptions
In future years, the company does not normally intend to grant 
share options to employees participating in the Deferred 
Annual Bonus and Venture Investment Plan. However, the 
Remuneration Committee has discretion to grant share 
options in special circumstances. 
None of the awards under the Deferred Annual Bonus Plan, 
Venture Investment Plan or Share Option arrangements  
are pensionable.
Non-executive Directors receive a fixed fee for their services 
and the reimbursement of reasonable expenses incurred in 
attending meetings. The remuneration of the Non-executive 
Directors is determined by the Board as a whole within the 
overall limits stipulated in the Articles of Association. Non-
executive Directors are not eligible to participate in any of the 
Company’s incentive schemes. ANGLE plc  Annu Al Repo Rt And Accounts 2006
33
d irectors’ interests – shares
The Directors’ interests, including beneficial interests, in the ordinary shares of the Company were as stated below:
 Ordinary shares of 10p each
        30 April 1 May
        2006  2005
H Fullerton    81,525 81,525
I F Griffiths    529,546 520,614
A D W Newland    6,794,686 6,794,686
D W Quysner    20,000 20,000
C D Buck held shares of 385,028 at 1 May 2005. He resigned as a Director during the year.
d irectors’ emoluments (audited)
The aggregate remuneration received by Directors who served during the year was as follows:
 Year ended 30 April
    2006 2006 2006 2006 2006 2005
    Salary/Fees Benefits Bonus Pension Total Total
    £’000 £’000 £’000 £’000 £’000 £’000
Chairman
H Fullerton    35 – – – 35 35
Executive
C D Buck
1
    174 1 – – 175 136
I F Griffiths    112 1 30 – 143 122
A D W Newland    231 1 150 35 417 257
Non-executive
D W Quysner    25 – – – 25 25
I G Ross
2
    23 – – – 23 25
Total    600 3 180 35 818 600
Benefits represent private medical insurance and life assurance provision.
1
  Covers the period to 31 July 2006 in accordance with the terms of the contract of employment.
2
 Covers the period to 31 March 2006. ANGLE plc  Annu Al Repo Rt And Accounts 2006
34
d irectors’ interests – share o Ptions (audited)
The Directors’ interests in the ordinary share options of the Company were as stated below:
 At     At  Exercise Earliest
 1 May     30 April Date price exercise Expiry
Name  2005  Granted Lapsed Cancelled Exercised 2006 of grant £ date date
H Fullerton
 10,000     10,000 16/02/01 2.50 16/02/04 15/02/08
 12,000     12,000 27/09/02 1.00 27/09/05 26/09/09
 60,000     60,000 18/07/03 1.00 18/07/06 17/07/10
 40,000     40,000 17/03/04 1.44 17/03/07 16/03/11
 122,000 – – – – 122,000
I F Griffiths
 60,000     60,000 02–06/03/00 1.00 02/03/03 05/03/07
 60,000     60,000 16/02/01 2.50 16/02/04 15/02/08
 60,000     60,000 27/09/02 1.00 27/09/05 26/09/09
 60,000     60,000 18/07/03 1.00 18/07/06 17/07/10
 40,000     40,000 17/03/04 1.44 17/03/07 16/03/11
  47,619    47,619 29/07/05 1.26 29/07/08 28/07/12
  100,000    100,000 27/04/06 0.835 27/04/09 26/04/13
 280,000 147,619 – – – 427,619
A D W Newland
 65,313     65,313 06/03/00 1.00 06/03/03 05/03/07
 60,000     60,000 16/02/01 2.50 16/02/04 15/02/08
 40,000     40,000 17/03/04 1.44 17/03/07 16/03/11
  47,619    47,619 29/07/05 1.26 29/07/08 28/07/12
  601,056    601,056 30/03/06 0.79 30/03/09 29/03/13
 165,313 648,675 – – – 813,988
No options were exercised, lapsed or cancelled by the Directors during the year.
Note 19 provides additional information on share options.
shareholder return
The market price of the Company’s shares on 30 April 2006 was 83.5p and the range of market price during the period from 
1 May 2005 until 30 April 2006 was between 82.5p (low) and 167.5p (high).
By order of the Board
h ance f ullerton
Remuneration Committee Chairman
26 July 2006
Remuneration report continued ANGLE plc  Annu Al Repo Rt And Accounts 2006
35
Independent auditors’ report to the shareholders of ANGLE plc
We have audited the Group and parent company Financial 
Statements on pages 36 to 64. We have also audited the 
information in the Directors’ Remuneration Report that is 
described as having been audited.
This report is made solely to the Company’s members, as a 
body, in accordance with section 235 of the Companies Act 
1985. Our audit work has been undertaken so that we might 
state to the Company’s members those matters we are 
required to state to them in an auditor’s report and for no 
other purpose. To the fullest extent permitted by law, we do 
not accept or assume responsibility to anyone other than the 
Company and the Company’s members as a body, for our 
audit work, for this report, or for the opinions we have formed.
r es Pective res Ponsibilities of d irectors and auditors
The Directors’ responsibilities for preparing the Annual Report 
and the Group financial statements in accordance with applicable 
law and International Financial Reporting Standards (IFRS) as 
adopted for use in the European Union, and for preparing the 
parent company financial statements in accordance with 
applicable laws and United Kingdom Accounting Standards 
(United Kingdom Generally Accepted Accounting Practice)  
are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the Financial Statements in 
accordance with relevant legal and regulatory requirements, 
and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the Financial 
Statements give a true and fair view and have been properly 
prepared in accordance with the Companies Act 1985 and 
whether the information given in the Directors’ Report is 
consistent with the Financial Statements. We also report to 
you if, in our opinion, the Company has not kept proper 
accounting records, if we have not received all the information 
and explanations we require for our audit, or if information 
specified by law regarding Directors’ remuneration and other 
transactions is not disclosed.
We read other information contained in the Annual Report 
and consider whether it is consistent with the audited Financial 
Statements. The other information comprises only the 
unaudited part of the Chairman’s statement, Chief Executive 
Officer’s review, Financial review, Consulting and Management, 
Investment Portfolio, Directors’ Report, Corporate Governance 
report and Remuneration Report. We consider the 
implications for our report if we become aware of any 
apparent misstatements or material inconsistencies with the 
Financial Statements. Our responsibilities do not extend to 
any other information.
basis of o Pinion
We conducted our audit in accordance with International 
Standards on Auditing (UK and Ireland) issued by the Auditing 
Practices Board. An audit includes examination, on a test 
basis, of evidence relevant to the amounts and disclosures in 
the Financial Statements. It also includes an assessment of the 
significant estimates and judgements made by the Directors  
in the preparation of the Financial Statements, and of whether 
the accounting policies are appropriate to the Group and 
Company’s circumstances, consistently applied and 
adequately disclosed.
We planned and performed our audit so as to obtain all the 
information and explanations which we considered necessary 
in order to provide us with sufficient evidence to give 
reasonable assurance that the Financial Statements are free 
from material misstatement, whether caused by fraud or other 
irregularity or error. In forming our opinion we also evaluated 
the overall adequacy of the presentation of information in the 
Financial Statements.
oP inion
In our opinion:
the Group Financial Statements give a true and fair view, in 
accordance with IFRS as adopted for use in the European 
Union, of the state of the Group’s affairs as at 30 April 2006 
and of the loss for the year then ended;
the Group and parent company financial statements have 
been properly prepared in accordance with the Companies 
Act 1985;
the parent company financial statements give a true and  
fair view, in accordance with United Kingdom Generally 
Accepted Accounting Practice, of the state of the parent 
company’s affairs as at 30 April 2006; and
the information given in the Directors’ Report is consistent 
with the Financial Statements.
baker t illy
Chartered Accountants and Registered Auditors
Guildford
26 July 2006
‡
‡
‡
‡ ANGLE plc  Annu Al Repo Rt And Accounts 2006
36
Consolidated income statement
 for the year ended 30 a Pril 2006 
        2006 2005
         (Restated*)
       Notes £ £
Turnover   2
Consulting and Management    4,022,092 3,897,714
Ventures    60,000 234,437
Controlled investments    10,775 –
    4,092,867 4,132,151
Investments   11
Change in fair value    2,377,772 (1,583,636)
Operating costs   3
Consulting and Management    (3,995,530) (3,389,197)
Ventures    (2,471,626) (1,804,138)
Controlled investments    (2,217,568) (247,691)
Share based payments    (381,884) (283,490)
Restructuring charges   7 (203,740) –
    (9,270,348) (5,724,516)
Operating profit/(loss)    (2,799,709) (3,176,001)
Net finance income   8 131,969 242,184
     
Profit/(loss) before tax    (2,667,740) (2,933,817)
 Loss before controlled investments and tax    (460,946) (2,686,126)
 Controlled investments    (2,206,794) (247,691)
Tax   9 142,023 47,890
     
Profit/(loss) for the year    (2,525,717) (2,885,927)
Earnings/(loss) per share   10
Basic (pence per share)    (14.36) (17.28)
Diluted (pence per share)    (14.36) (17.28)
* As restated for the adoption of IFRS. ANGLE plc  Annu Al Repo Rt And Accounts 2006
37
Consolidated balance sheet
 as at 30 a Pril 2006 
        2006 2005
         (Restated*)
       Notes £ £
Assets
Non-current assets
Investments   11 1,642,051 2,515,517
Property, plant and equipment   12 147,414 81,250
Intangible assets   13 3,575 4,763
Trade and other receivables   15 –  239,570
Total non-current assets    1,793,040 2,841,100
Current assets
Investments   11 4,868,077 818,819
Trade and other receivables   15 1,224,658 857,741
Cash and cash equivalents    8,234,853 5,534,888
Total current assets    14,327,588 7,211,448
Total assets    16,120,628 10,052,548
Equity and liabilities
Equity
Issued capital   18 2,713,293 1,670,648
Share premium account    13,701,935 7,381,864
Share based payment reserve    918,876 536,992
Other reserves    2,553,356 2,553,356
Translation reserve    (73,159) (42,990)
Retained earnings    (5,312,955) (2,787,238)
Own shares    (20,000) –
Total equity    14,481,346 9,312,632
Liabilities
Non-current liabilities
Obligations under finance leases   17 27,363 1,316
Current liabilities
Trade and other payables   16 1,592,362 733,562
Obligations under finance leases   17 19,557 5,038
Total current liabilities    1,611,919 738,600
Total liabilities    1,639,282 739,916
Total equity and liabilities    16,120,628 10,052,548
* As restated for the adoption of IFRS.
The Financial Statements were approved by the Board and authorised for issue on 26 July 2006 and signed on its behalf by:
h f ullerton a d w n ewland
Director Director ANGLE plc  Annu Al Repo Rt And Accounts 2006
38
Consolidated cash flow statement
 for the year ended 30 a Pril 2006 
        2006 2005
         (Restated*)
        £ £
Operating activities
Operating profit/(loss)    (2,799,709) (3,176,001)
Depreciation of property, plant and equipment    49,294 25,652
Amortisation of intangible assets    1,707 2,202
(Profit)/loss on disposal of property    1,059 –
Exchange differences    (30,295) (42,664)
(Increase)/decrease in trade and other receivables    (431) (223,574)
Increase/(decrease) in trade and other payables    855,183 (237,526)
Change in fair value of investments    (2,377,772) 1,583,636
Share based payments    381,884 283,490
Net cash from operating activities    (3,919,080) (1,784,785)
Investing activities
Purchase of property, plant and equipment    (61,242) (76,093)
Purchase of intangible assets    (820) (6,964)
Purchase of investments    (698,018) (508,036)
Provision of convertible loans    (100,000) (500,000)
Purchase of own shares    (20,000) –
Net interest received    136,312 243,674
Net cash used in investing activities    (743,768) (847,419)
Financing activities
Net proceeds from issue of share capital    7,376,972 (69,241)
Capital elements of finance lease contracts    (14,159) (10,538)
Net cash from financing activities    7,362,813 (79,779)
Net increase/(decrease) in cash and cash equivalents    2,699,965 (2,711,983)
Cash and cash equivalents at start of period    5,534,888 8,246,871
Cash and cash equivalents at end of period    8,234,853 5,534,888
* As restated for the adoption of IFRS. ANGLE plc  Annu Al Repo Rt And Accounts 2006
39
Consolidated statement of changes in equity
 for the year ended 30 a Pril 2006 
    Share based
  Issued Share payment Other Translation Retained Own Total
  capital premium reserve reserves reserve earnings shares equity
  £ £ £ £ £ £ £ £
At 1 May 2004 (restated
*
)  1,669,648 7,375,518 253,502 2,553,356 – 98,689 – 11,950,713
For the year to 30 April 2005
Consolidated profit/(loss)      (42,990) (2,885,927)  (2,928,917)
Share based payments    283,490     283,490
Issue of share capital (net)  1,000 6,346      7,346
At 30 April 2005 (restated
*
)  1,670,648 7,381,864 536,992 2,553,356 (42,990) (2,787,238) – 9,312,632
For the year to 30 April 2006 
Consolidated profit/(loss)      (30,169) (2,525,717)  (2,555,886)
Share based payments    381,884     381,884
Issue of share capital (net)  1,042,645 6,320,071      7,362,716
Own shares        (20,000) (20,000)
At 30 April 2006  2,713,293 13,701,935 918,876 2,553,356 (73,159) (5,312,955) (20,000) 14,481,346
* As restated for the adoption of IFRS.
share based Payment reserve
The share based payment reserve account is used for the corresponding entry to the share based payments charged through  
the income statement. Transfers are made from this reserve to retained earnings as the related share options are exercised,  
lapse or expire.
t ranslation reserve
The translation reserve account comprises cumulative exchange differences arising on consolidation from the translation of  
the financial statements of international operations. Under IFRS this is separated from retained earnings.
o wn shares
The own shares account relates to shares purchased by the ANGLE Employee Share Ownership Trust. ANGLE plc  Annu Al Repo Rt And Accounts 2006
40
Notes to the consolidated financial statements
 for the year ended 30 a Pril 2006 
1 a ccounting Policies
1.1 basis of Pre Paration
The European Union (EU) regulation 1606/2002 requires 
European Companies with securities traded on an EU 
regulated market to prepare their consolidated financial 
statements in accordance with EU endorsed International 
Financial Reporting Standards (IFRS) for accounting periods 
beginning on or after 1 January 2005. On 7 October 2004,  
the Alternative Investment Market (AIM) of the London Stock 
Exchange announced that it was to become an exchange 
regulated market instead of an EU regulated market, which 
became effective from 12 October 2004. This change of status 
brings the market outside the scope of the EU directive on 
International Accounting Standards (IAS) adoption although 
the London Stock Exchange announced that it intended  
to mandate IAS for all AIM companies for financial years 
commencing on or after 1 January 2007 (confirmed 21 
December 2005). As such, IFRS is not mandatory for AIM  
listed companies until accounting periods beginning on or 
after 1 January 2007.
The Directors have decided to adopt IFRS for the year  
ending 30 April 2006, as permitted by the Companies  
Act 1985 (International Accounting Standards and Other 
Accounting Amendments) Regulations that became law  
on 11 November 2004.
The Annual Report and Accounts have been prepared on the 
basis of the recognition and measurement requirements of 
IFRS in issue that have been endorsed by the EU for the year 
ended 30 April 2006, the Group’s first annual reporting date 
under IFRS. They have also been prepared in accordance with 
those parts of the Companies Act 1985 that apply to 
companies reporting under IFRS.
The Group’s results were prepared in accordance with 
United Kingdom Generally Accepted Accounting Principles 
(UK GAAP) and on the basis of the accounting policies set 
out in the statutory accounts until the year ended 30 April 
2005. IFRS differs in a number of areas from UK GAAP. In 
preparing the Group’s Annual Report and Accounts for the 
year ended 30 April 2006, the Directors have amended 
certain accounting, valuation and consolidation methods 
applied in the UK GAAP financial statements to comply  
with IFRS. The comparative figures in respect of 2005 were 
restated to reflect these adjustments.
The effect of the transition from UK GAAP to IFRS on the 
Group’s profit, net assets and cash flows for the year ended  
30 April 2005 are provided in the numerical reconciliation and 
narrative statements in Note 24.
s tandards and inter Pretations not a PPlied
At the date of authorisation of these financial statements,  
the following Standards and Interpretations (International 
Financial Reporting Interpretation Committee – IFRIC), which 
have not been applied in these Financial Statements, were in 
issue but not yet effective:
IFRS 6  Exploration for and Evaluation of  
Mineral Resources
IFRS 7  Financial instruments: Disclosures; and  
the related amendment to IAS 1 on  
capital disclosures
IFRIC 4  Determining whether an Arrangement 
contains a Lease
‡
‡
‡
IFRIC 5  Rights to Interest Arising from 
Decommissioning, Restoration and 
Environmental Rehabilitation Funds
IFRIC 7  Applying the Restatement Approach  
under IAS 29 Financial Reporting in 
Hyperinflationary Economies
IFRIC 8 Scope of IFRS 2 Share Based Payment
IFRIC 9 Reassessment of Embedded Derivatives
IFRIC 10 Interim Financial Reporting and Impairment.
The Directors anticipate that the adoption of these Standards 
and Interpretations in future periods will have no material 
impact on the financial statements of the Group when the 
relevant standards and interpretations come into effect.
IFRS has only been applied to the consolidated financial 
statements. The Company has elected to keep and prepare  
its parent company financial statements in accordance with UK 
GAAP . The financial statements and accounting policies of the 
Company are presented on pages 62 to 64.
1.2 a ccounting convention
These Financial Statements have been prepared under the 
historical cost convention, as modified by the revaluation of 
certain financial assets at fair value, as required by IAS 39.  
The basis of consolidation is set out below. 
1.3 Presentation of financial statements
The financial information, in the form of the primary 
statements contained in this report, is presented in 
accordance with International Accounting Standard (IAS) 1, 
‘Presentation of Financial Statements’. IAS 1 provides no 
definitive guidance as to the format of the Income Statement, 
but states that key items should be disclosed. It also 
encourages additional line items to be added and the  
re-ordering of items presented on the face of the Income 
Statement when appropriate for a proper understanding  
of the entity’s financial performance. ANGLE has reviewed  
the items disclosed separately on the face of the Income 
Statement and the components of financial performance 
considered by management to be significant, or for  
which separate disclosure would assist, both in a better 
understanding of financial performance and in making 
projections of future results. This has been done taking into 
account the materiality, nature and function of components  
of income and expense.
1.4 basis of consolidation
Sub Sidiarie S
Subsidiary undertakings are consolidated on the basis of  
the acquisition method of accounting. Under this method  
of accounting the results of subsidiaries sold or acquired  
are included in the Income Statement up to, or from the  
date control passes. Intra-group transactions and balances  
are eliminated fully on consolidation and the consolidated 
accounts reflect external transactions only.
Subsidiaries are all entities over which the Group has the 
power to govern the financial and operating policies generally 
accompanying a shareholding of more than half of the voting 
rights. The existence and effect of potential voting rights are 
considered when assessing whether the Group controls an 
entity. Subsidiaries’ accounting policies are amended where 
necessary to ensure consistency with the policies adopted by 
the Group.
‡
‡
‡
‡
‡ ANGLE plc  Annu Al Repo Rt And Accounts 2006
41
1 a ccounting Policies CONTINUED
1.4 basis of consolidation CONTINUED
Sub Sidiarie S CONTINUED
Under UK GAAP the Group had elected to apply a true and 
fair override to treat controlled investments as investments 
held exclusively with a view for subsequent resale. Controlled 
investments were therefore held on the Balance Sheet at cost. 
IFRS does not allow a similar treatment of such investments.
aSS ociate S
Associates are entities over which the Group has significant 
influence, but does not control, generally accompanied by a 
shareholding of between 20% to 50% of the equity or voting 
rights. The Group has elected to treat such investments  
in associates as accounted for in accordance with IAS 39 
Financial Instruments: Recognition and Measurement, and 
upon initial recognition these investments are designated  
as at fair value through the Income Statement.
o ther inve Stment S
Other investments are generally investments where the Group 
owns less than 20% of the equity or voting rights. 
In accordance with IAS 39, upon initial recognition such 
investments are designated as at fair value through the Income 
Statement.
1.5 investments
The Directors consider that a substantial measure of the 
performance of the Group is assessed through changes in  
fair value arising from the investment activity of the Group. 
Consequently the Group classifies all its investments that  
are not controlled investments as being designated on  
initial recognition as financial assets at fair value through  
the Income Statement.
t reatment of gain S and lo SSe S ari Sing on fair value Investments that are not controlled investments are shown  
on the balance sheet at their fair value and any associated 
changes in fair value are included in the Income Statement  
in the period they arise.
v aluation policy In determining fair value, investments have been valued by the 
Directors in compliance with the principles of the International 
Private Equity and Venture Capital Guidelines, updated and 
effective 1 January 2005, as recommended by the British 
Venture Capital Association (BVCA).
Listed investments – the fair values of quoted investments are 
based on bid prices at the balance sheet date. In accordance 
with IFRS no marketability discount is applied for either the 
size of the Group’s holding relative to normal trading volumes 
or for any formal restrictions on trading.
Unlisted investments – the valuation methodology used most 
commonly by the Group is the ‘price of recent investment’, 
reflecting the early stage nature of the investments. The 
following considerations are used when calculating the fair 
value using the ‘price of recent investment’ guidelines:
Where the investment being valued was itself made 
recently, its cost will generally provide a good indication  
of fair value; and
Where there has been any recent investment by third parties, 
the price of that investment will provide a basis of the valuation.
Where a fair value cannot be estimated reliably the investment 
is reported at the carrying value at the previous reporting  
‡
‡
date unless there is evidence that the investment has since 
been impaired.
c onvertible loan note S
As well as direct investment into Progeny
®
 companies  
the Group uses other financial instruments such as  
convertible loans.
Under IAS 28 Investments in Associates: financial instruments 
that are presently exercisable are taken into account in 
determining control and significant influence and this  
may affect the basis of consolidation.
Under IAS 39 convertible loan notes are financial assets and 
are defined as compound financial instruments consisting of a 
liability component and an equity component. At the date of 
issue there is a requirement to split the instrument between its 
debt and equity components. 
The debt component is classified under investments as ‘Loans 
and receivables’ and subsequently carried in the balance 
sheet at cost less any impairment.
The equity component is classified under investments and 
subsequently carried in the balance sheet at fair value. The 
right to convert the loan into equity represents an embedded 
derivative (the option) and as such needs to be re-measured to 
fair value at each reporting date with any changes in fair value 
of this right taken through the Income Statement.
Convertible loans issued in a different functional currency to 
the issuing entity are treated the same, however, there may 
also be an associated financial instrument (see policy below) to 
manage the risks associated with foreign currency fluctuations.
1.6 t urnover
Turnover represents amounts receivable for goods and 
services net of value added tax.
Consulting and Management revenues are recognised in 
proportion to the stage of completion of each project.  
The stage of completion takes into account the milestones 
achieved in relation to the project deliverables.
1.7 emPloyee benefits
Share ba Sed payment S
Share based incentive arrangements which allow Group 
employees to acquire shares of the Company are provided  
to staff. The fair value of options granted is recognised as a 
cost of employment with a corresponding increase in equity. 
In accordance with IFRS 2, Share options granted after 7 
November 2002 which had not vested by 1 May 2005 are 
valued at the date of grant using an appropriate option pricing 
model and are charged to operating costs over the vesting 
period of the award. The annual charge is modified to take 
account of options granted to employees who leave the 
Group during the performance or vesting period and forfeit 
their rights to the share options and in the case of non-market 
related performance conditions, where it becomes unlikely 
they will vest. The fair value of options granted to professional 
advisors as part consideration for services in connection  
with fund raising is recognised as an expense against share 
premium account with a corresponding increase in equity. 
Such options vest and are expensed on successful completion 
of the services. ANGLE plc  Annu Al Repo Rt And Accounts 2006
42
1 a ccounting Policies CONTINUED
1.7  emPloyee benefits CONTINUED
p en Sion o bligation S
Pension costs are charged against profits as they fall due and 
represent the amount of contributions payable to a defined 
contribution scheme in the US or to employee personal 
pension schemes on an individual basis. The Group has  
no further payment obligations once the contributions have 
been paid.
A liability for short term compensated absences, such as 
holiday, is recognised for the amount the Group may be 
required to pay as a result of the unused entitlement that  
has accumulated at the balance sheet date.
b onu S plan The Group operates a discretionary staff bonus scheme for  
its employees and Directors. From 1 May 2006 this has been 
incorporated into a formal Deferred Annual Bonus Plan.
v enture inve Stment p lan The Group has introduced a venture investment plan for its 
employees and Directors involved in the Ventures area of the 
business. The commencement date of this plan is deemed  
to be 1 May 2004. The Group recognises a liability and an 
expense for bonuses that are accruing through the creation  
of value in the Group’s portfolio of equity investments but  
that have not yet been realised in cash.
1.8 income taxes
Full provision is made for deferred tax on all temporary timing 
differences resulting from the carrying value of an asset or 
liability and its tax base. Deferred tax is determined using  
tax rates (and laws) that have been enacted or substantially 
enacted by the balance sheet date and are expected to apply 
when the related deferred tax liability is settled or deferred tax 
asset realised.
Deferred tax liabilities are recognised on any increase in  
the fair value of investments to the extent that substantial 
shareholdings relief may be unavailable. Deferred tax assets 
are only recognised to the extent to which they are expected 
to be recovered in the near future. IAS 12 Income taxes 
requires the separate disclosure of deferred tax assets and 
liabilities on the Group’s Balance Sheet. 
1.9 Pro Perty, Plant and equi Pment 
All property, plant and equipment is stated at historical cost 
less accumulated depreciation and subject to impairment 
review. Cost includes expenditure that is attributable to the 
acquisition of the items. Depreciation is provided at rates 
calculated to write off the cost less estimated residual value  
of each asset over its expected useful life. Assets held under 
finance leases are depreciated over their expected useful  
life on the same basis as owned assets, or where shorter, the 
lease term. Assets are reviewed for impairment when events  
or changes in circumstances indicate that the carrying  
amount may not be recoverable. 
The following rates are used:
Computer equipment 33.33% Straight line
Fixtures, fittings and equipment 33.33% Straight line
Laboratory equipment 20% Straight line
1.10 intangible assets
c omputer Software Under IAS 38 – Intangible Assets, acquired computer software 
should be capitalised as an intangible asset unless it is an 
integral part of the related hardware (such as the operating 
system) where it remains as an item of property, plant and 
equipment. Certain assets have been reclassified accordingly. 
Internally developed computer software will be capitalised in 
accordance with the research and development accounting 
policy. If the software is developed for in-house use the 
capitalised amount is reclassified from research and 
development to computer software.
Amortisation is calculated using the straight line method to 
allocate the cost of the software over its estimated useful 
economic life.
r e Search and development Research expenditure is written off as incurred. 
Development expenditure is also written off, except where  
the Directors are satisfied that a new or significantly improved 
product or process results and other relevant IAS 38 criteria 
are met as to the technical, commercial and financial viability 
of individual projects that would allow such costs to be 
capitalised. In such cases, the identifiable expenditure is 
capitalised and amortised over the period during which 
benefits are expected.
p atent S
Patents have a finite useful life and are stated at cost less 
accumulated amortisation. Amortisation is calculated using 
the straight line method to allocate the cost of patents over 
their estimated useful economic lives. 
i mpairment Intangible assets are reviewed for impairment when events or 
changes in circumstances indicate that the carrying amount 
may not be recoverable. An impairment loss is recognised  
for the amount by which the carrying amount exceeds its 
recoverable amount. The recoverable amount is the higher  
of the asset’s fair value less costs to sell and the value in use.
1.11 l eases
Assets obtained under hire purchase contracts and finance 
leases, and any other leases that entail taking substantially all 
the risks and rewards of ownership of an asset, are capitalised 
on the balance sheet and depreciated over the shorter of  
the lease term and their useful lives. Obligations under such 
agreements are included in creditors net of the finance charge 
allocated to future periods. The finance element of the rental 
payment is charged to the Income Statement so as to produce 
a constant periodic rate of charge on the net obligation 
outstanding in each period.
1.12 emPloyee share o wnershi P t rust
The Group has an Employee Share Ownership Trust (ESOT)  
to assist with the obligations under share option and other 
employee remuneration schemes. The ESOT is consolidated 
as if it were a subsidiary. Shares in the Group held by the ESOT 
are stated at cost and presented in the Balance Sheet as a 
deduction from equity under the heading of Own Shares. 
Finance and administration costs relating to the ESOT are 
charged to operating costs.
Notes to the consolidated financial statements continued
 for the year ended 30 a Pril 2006  ANGLE plc  Annu Al Repo Rt And Accounts 2006
43
1 a ccounting Policies CONTINUED
1.13 f oreign currency
The Consolidated Financial Statements are presented in 
pounds sterling, which is the Company’s functional and 
presentation currency. The Group determines the functional 
currency of each entity and items included in the financial 
statements of each entity are measured using that functional 
currency. The functional currencies of the Group’s operations 
are sterling and US dollars.
Transactions denominated in foreign currencies are recorded 
at the rate ruling at the date of the transaction. Monetary 
assets and liabilities denominated in foreign currencies are 
translated at the rates of exchange ruling at the balance  
sheet date. 
Non-monetary assets and liabilities denominated in foreign 
currencies and held at cost use the exchange rate at the date 
of the initial transactions. Non-monetary assets and liabilities 
denominated in foreign currencies and held at fair value use the 
exchange rate at the date that the fair value was determined.
Profits and losses on both the individual transactions during 
the period and monetary assets and liabilities are dealt with  
in the Income Statement.
On consolidation, the income statements of the foreign 
subsidiaries are translated at the average exchange rates for 
the period and the balance sheets at the exchange rates at  
the balance sheet date. The exchange differences arising as  
a result of translating income statements at average rates and 
restating opening net assets at closing rates are taken to the 
translation reserve. On disposal of a foreign operation, the 
deferred cumulative amount recognised in equity relating  
to that particular foreign operation is recognised in the 
Income Statement.
The Group has elected to apply the exemption in IFRS 1 ‘First 
time adoption of International Financial Reporting Standards’ 
which allows the cumulative translation differences for all 
foreign operations to be deemed to be zero at the date of 
transition to IFRS. The Group has similarly elected that the 
profit or loss on any subsequent disposal of any foreign 
operation shall exclude translation differences that arose 
before the date of transition.
1.14 f inancial instruments
Financial assets and liabilities are recognised in the Group’s 
balance sheet when the Group becomes a party to the 
contractual provisions of the instrument. 
d erivative financial in Strument S
The Group uses derivative financial instruments as appropriate 
to manage the risks associated with foreign currency 
fluctuations from its activities and changes in interest rates  
on borrowings. This is achieved by the use of foreign currency 
contracts, currency swaps and interest rate swaps. All 
derivative financial instruments are held at fair value. The 
Group does not use derivative financial instruments for 
speculative purposes.
Derivative financial instruments are recognised initially at fair 
value on the contract date and subsequently re-measured  
to fair value at each reporting date. The fair value of forward 
exchange contracts is calculated by reference to current 
forward exchange contracts for contracts with similar maturity 
profiles. The fair value of currency swaps and interest rate 
swaps is determined with reference to future cash flows and 
current interest and exchange rates. All changes in the fair 
value of derivative financial instruments are taken through the 
Income Statement.
Derivatives embedded in other financial instruments or other 
non-financial host contracts are treated as separate derivatives 
when their risks and characteristics are not closely related to 
those of the host contract and the host contract is not carried 
at fair value with unrealised gains or losses reported in the 
Income Statement.
c a Sh and ca Sh equivalent S
Cash and short term deposits in the balance sheet comprise 
cash at bank and in hand and short term deposits with an 
original maturity of three months or less.
For the purposes of the Cash Flow Statement, cash and cash 
equivalents comprise cash and short term deposits as defined 
previously and other short term highly liquid investments  
that are readily convertible into cash and are subject to an 
insignificant risk of changes in value, net of outstanding short-
term borrowings.
d epo Sit S
Deposits in the balance sheet comprise longer term deposits 
with an original maturity of greater than three months.
b ank loan S, loan note S and borrowing S
All loans and borrowings are initially recognised at the  
fair value of the consideration received net of issue costs 
associated with the borrowings. After initial recognition,  
these are subsequently measured at amortised cost using  
the effective interest method, which is the rate that exactly 
discounts the estimated future cash flows through the 
expected life of the liabilities. Amortised cost is calculated  
by taking into account any issue costs and any discount or 
premium on settlement.
o ther a SSet S
Assets, other than those specifically accounted for under a 
separate policy, are stated at their cost less impairment losses. 
They are reviewed at each balance sheet date to determine 
whether there is any indication of impairment. If any such 
indication exists, the asset’s recoverable amount is estimated 
based on expected discounted future cash flows. Any change 
in the level of impairment is recognised directly in the Income 
Statement. An impairment loss is reversed at subsequent 
balance sheet dates to the extent that the asset’s carrying 
amount does not exceed its carrying value had no impairment 
loss been recognised.
o ther liabilitie S
Liabilities, other than those specifically accounted for under  
a separate policy, are stated based on the amounts which  
are considered to be payable in respect of goods or services 
received up to the balance sheet date.
  ANGLE plc  Annu Al Repo Rt And Accounts 2006
44
1 a ccounting Policies CONTINUED
p rovi Sion S
Provisions are recognised when the Group has a present 
obligation as a result of past events, and it is probable that the 
Group will be required to settle that obligation and a reliable 
estimate of the obligation can be made. The provisions are 
measured at the Directors’ best estimate of the amount to 
settle the obligation at the balance sheet date, and are 
discounted back to present value if the effect is material.
1.15 segmental re Porting
A business segment is a group of assets and operations 
engaged in providing services that are subject to risks  
and returns that are different from those of other business 
segments. A geographical segment is engaged in providing 
services within a particular economic environment that is 
subject to different risks and returns from other segments  
in other economic environments.
1.16 r estructuring charges
Restructuring charges are accrued against operating income 
in the period in which management has committed to a plan 
and in which the liability has been incurred and the amount 
can be reasonably estimated.
1.17 c ritical accounting estimates and judgements
The preparation of financial statements requires the use of 
estimates and assumptions that affect the reported amounts 
of assets and liabilities at the date of the Financial Statements 
and the reported amounts of revenues and expenses  
during the reporting period. Although these estimates and 
assumptions are based on management’s best knowledge  
of the amount, event or actions, actual results ultimately may 
differ from those estimates.
The estimates and assumptions that have a significant risk  
of causing a material adjustment to the carrying amounts  
of assets and liabilities relate to the valuation of unlisted 
investments held at fair value, which are valued on the  
basis noted above.
2 t urnover and segmental analysis
The Group operates in one principal area of activity - technology 
wealth creation through the commercialisation of intellectual 
property and the development of technology industry. 
The primary business segments are:
Consulting and Management – provision of consulting  
and management services to clients including research 
organisations, corporate and governmental organisations 
on a fee-for-service basis. This business segment provides  
a platform for the Ventures activities.
Ventures – activities to establish, develop and create value 
in technology companies. The Group uses a proprietary 
Progeny
® 
process to develop these companies, which  
are referred to as Progeny
®
 companies. ANGLE’s unique 
business model involves ANGLE founding new companies 
which it controls during the critical early stages of 
development, before securing third party funding. Under 
IFRS, the accounting for Progeny
®
 companies divides into 
controlled investments and non-controlled investments.
‡
‡
Investments
Controlled investments – Progeny
®
 companies where the 
Group has control, typically as a result of owning in excess 
of 50% of the equity. These are consolidated and the 
Group’s investment costs are expensed in the Income 
Statement.
Non-controlled investments – Progeny
®
 companies where 
the Group does not have control. These investments are 
held on the balance sheet at fair value, with changes in fair 
value passing through the Income Statement.
The nature of these operations is significantly different.  
The primary format and segmentation by class of business  
has been provided on the face of the Consolidated  
Income Statement. 
The secondary format would be by geographical format. 
Segmental revenue by geographical revenue is shown on 
page 45. Over 90% of segment assets by geographical 
location are based in the UK.
The turnover of the Group for the year has been primarily derived 
from its Consulting and Management activities. Some £0.70 
million (2005: £0.94 million) of the fees relate to reimbursable 
operating expenditure incurred on management contracts. 
In addition the Group provides management services to 
investments in the form of non-executive director services, 
management, accounting and administration support for 
which it receives fees. 
The geographical analysis, as defined by the country or area  
in which the client is based, follows on page 45.
‡
‡
‡
Notes to the consolidated financial statements continued
 for the year ended 30 a Pril 2006  ANGLE plc  Annu Al Repo Rt And Accounts 2006
45
2 t urnover and segmental analysis CONTINUED
        2006 2005
        £ £
Consulting and Management
United Kingdom    2,271,440 2,190,561
Other European countries    – 7,804
North America    576,611 429,027
Middle East    1,174,041 1,270,322
    4,022,092 3,897,714
Ventures
United Kingdom    60,000 234,437
North America    – –
    60,000 234,437
Controlled investments
United Kingdom    4,471 –
North America    6,304 –
    10,775 –
Total turnover    4,092,867 4,132,151
3 oP erating costs
        2006 2005
        £ £
Staff costs – employees (Note 5)    5,363,509 3,051,532
Depreciation
 – owned assets    42,041 14,739
 – leased assets    7,253 10,913
Amortisation of intangible assets    1,707 2,202
Auditors’ remuneration
 – audit services    52,165 30,250
 – non-audit services    19,730 25,545
Bad debts    58,549 –
Research and development    674,863 26,312
Restructuring charges    203,740 –
Other operating costs    2,846,791 2,563,023
    9,270,348 5,724,516
Non-audit services provided relate to tax compliance and tax advice in relation to corporate affairs, valuations, share options  
and founder shares and expatriates. Additional auditors’ remuneration of £2,300 (2005: £nil) was incurred in relation to fees for 
professional services provided on the secondary placing and was charged directly to the share premium account.
4 d irectors’ emoluments
        2006 2005
        £ £
Emoluments for qualifying services    817,926 599,490
Emoluments disclosed above include the following amounts paid to the highest paid Director
Emoluments for qualifying services    417,006 256,680
Retirement benefits of £34,822 were paid in the year (2005: £nil) and are included in the amount paid to the highest paid Director.
Disclosures relating to individual Directors’ emoluments are given in the Remuneration Report on pages 32 to 34. ANGLE plc  Annu Al Repo Rt And Accounts 2006
46
5 emPloyment
emPloyment costs
The aggregate employment costs of staff (including Directors and controlled investments) for the year was:
        2006 2005
        £ £
Wages and salaries    4,480,913 2,503,253
Social security costs    421,057 251,152
Other pension costs (Note 6)    79,655 13,637
    4,981,625 2,768,042
Employee share based payment charge (Note 19)    381,884 283,490
    5,363,509 3,051,532
n umber of em Ployees
The average number of employees (including Directors) during the year was:
        2006 2005
        Number Number
Executives    35 25
Administration    14 11
Controlled investments    8 2
    57 38
6 Pension costs
The Group operates a defined contribution pension scheme for employees in the US. The assets of the scheme are held 
separately from those of the Group in an independently administered fund. The pension cost charge represents contributions 
payable by the Group to the fund and amounted to £11,208 (2005: £7,637). Contributions totalling £9,298 (2005: £3,190) were 
payable to the fund at the year-end and are included in trade and other payables. The Group made UK pension costs payments 
of £68,447 (2005: £6,000) directly to personal pension plan schemes.
7 r estructuring charges
Restructuring charges of £203,740 (2005: £nil) relate to the cost of reorganising the business during the period to strengthen the 
regional leadership and position the Group for future growth.
8 n et interest receivable
        2006 2005
        £ £
Interest receivable    134,394 245,446
Interest payable
Bank interest    65 116
Lease finance charges    2,360 3,146
    2,425 3,262
Net interest receivable    131,969 242,184
Notes to the consolidated financial statements continued
 for the year ended 30 a Pril 2006  ANGLE plc  Annu Al Repo Rt And Accounts 2006
47
9  tax
As a result of the Group’s furtherance of its core activity of establishing and developing technology and biotechnology 
companies, taxable losses have been incurred which are available for offset against future taxable profits. The Group is also 
eligible for, and takes advantage of, the substantial shareholdings relief UK corporation tax exemption. This results in the gain 
from any disposals of UK investments where the Group has an equity stake greater than 10%, and subject to certain other tests, 
being free of corporation tax. A deferred tax asset has not been recognised in respect of these losses as the Group does not 
anticipate taxable profits to arise within the foreseeable future.
The estimated value of the deferred tax asset not recognised, measured at a standard rate of 30% is £2,190,000 (2005: £960,000).
        2006 2005
        £ £
Profit/(loss) on ordinary activities before tax    (2,667,740) (2,933,817)
Tax on profit/(loss) on ordinary activities at 30%    (800,322) (880,145)
Factors affecting charge:
Capital allowances for period in excess of depreciation    3,772 (4,072)
Disallowable expenses    6,025 21,128
Other tax adjustments    15,727 12,281
Change in fair value of investments    (713,332) 475,091
Share based payments    114,565 85,047
Unutilised losses carried forward    1,231,542 280,630
Prior year adjustment    – 37,850
Current tax charge / (credit) for year    (142,023) (47,890)
10 earnings/(loss) Per share
The basic and fully diluted earnings per share is calculated on an after tax loss of £2.53 million (2005: loss £2.89 million).  
Share options are regarded as dilutive if the exercise price was below the average fair value. Note 19 provides information  
on outstanding options. Share options are non-dilutive for the year because of the loss.
 
        2006 2005
        £ £
Profit/(loss) for the financial year    (2,525,717) (2,885,927)
        Number of Number of
        shares shares
Weighted average number of ordinary shares – basic    17,584,521 16,697,500
Effect of potential dilutive share options    – –
Adjusted weighted average number of ordinary shares – diluted    17,584,521 16,697,500
Earnings/(loss) per share – basic (p)    (14.36) (17.28)
Earnings/(loss) per share – diluted (p)    (14.36) (17.28) ANGLE plc  Annu Al Repo Rt And Accounts 2006
48
11 investments 
The Group’s investment portfolio comprises investments in Progeny
®
 companies. 
Where the Group has control of a Progeny
®
 company (typically owning more than 50% of the equity), these are controlled 
investments and they are consolidated as subsidiaries until such time as control no longer exists. At the point control no longer 
exists a deemed profit arises and the investment is held at fair value on the Consolidated Balance Sheet. In the year to 30 April 
2006 net costs relating to controlled investments of £2,206,794 were charged to the Income Statement (2005: £247,691). 
Where the Group does not control a Progeny
®
 company (typically owning less than 50% of the equity), these are held on the 
balance sheet at fair value, as set out in the table below:
        Non-current 
       Current assets assets Total
       Quoted Unquoted Investments
       £ £ £
At 1 May 2004       2,367,821 1,542,116 3,909,937
Investments       50,000 958,035 1,008,035
Change in fair value       (1,599,002) 15,366 (1,583,636)
At 30 April 2005       818,819 2,515,517 3,334,336
Investments       500,024 297,996 798,020
Reclassifications       1,041,219 (1,041,219) –
Change in fair value       2,508,015 (130,243) 2,377,772
At 30 April 2006       4,868,077 1,642,051 6,510,128
Investments are made directly and in the form of loans. The loans are normally convertible into equity and are non-interest bearing.
Group investments at the end of the year comprise the following:
        Effective Effective
        holding holding
       Class of before after
       share minority  minority
 Principal activity held interests % interests %
Non-current asset investments
Acolyte Biomedica Limited
1,2
 Medical diagnostic systems Ordinary 11.54 11.39
NeuroTargets Limited
1,2,3
 New drug targets Ordinary  25.08 24.27
Current asset investments
Corpora plc
1,2
 KM software Ordinary 6.07 N/A
Provexis plc
1,2
 Nutraceutical products Ordinary 24.80 24.35
1
 The effective Group holdings shown are before the effects of any dilutive share options or warrants within the individual investments.
2
 Recent financial statements are not always publicly available and management information is deemed commercially sensitive. Net assets and profit/(loss) figures 
are therefore based on publicly available information – results statements or the most recently filed Accounts with Companies House.
3
 NeuroTargets Limited access to future funding is uncertain and it is therefore carried at £nil on the balance sheet (2005: £100,799)
Notes to the consolidated financial statements continued
 for the year ended 30 a Pril 2006  ANGLE plc  Annu Al Repo Rt And Accounts 2006
49
11 investments CONTINUED
The aggregate amount of capital and reserves and the results of these investments for the last relevant financial year were  
as follows:
       Date of
        financial Net Profit/(loss)
       statements assets for the year
Acolyte Biomedica Limited       31/12/2005 1,394,375 (1,645,950)
Corpora plc       30/06/2005 8,640,000 (4,630,000)
NeuroTargets Limited       30/04/2005 264,843 (377,696)
Provexis plc       31/03/2006 8,849,598 (3,238,967)
Financial information is based on financial statements that are publicly available.
subsidiaries
The following subsidiaries have been consolidated into the Group Financial Statements using the acquisition method of accounting:
   Class of Holding
Controlled investments  Principal activity  share held %
Aberro Inc
1
 Software testing tools  Common & Preferred 61.54
Kaloptics Inc
1 
Rapid image surface capture  Common 100.00
Geomerics Limited
1
 Computational graphics  Ordinary 100.00
InnoMatica Limited
1
 Vibration reduction  Ordinary 100.00
Novocellus Limited
1
 IVF diagnostics  Ordinary 62.67
Parsortix Inc
1
 Cell separation  Common 100.00
Synature Limited
1
 Internet personalisation  Ordinary 100.00
All incorporated in Great Britain with the exception of Aberro Inc, Parsortix Inc and Kaloptics Inc which are incorporated in the US.
1
 The effective Group holdings shown are before the effects of any dilutive share options or warrants within the individual investments.
 Country of Registration  Class of  Holding
Principal Subsidiaries or Incorporation  share held  %
ANGLE Partnerships Limited* Great Britain  Ordinary  100.00
ANGLE Technology Licensing Limited Great Britain  Ordinary  100.00
ANGLE Technology Limited* Great Britain  Ordinary  100.00
ANGLE Technology Ventures Limited Great Britain  Ordinary  100.00
ANGLE Ventures Limited* Great Britain  Ordinary  100.00
Progeny bioVentures Limited Great Britain  Ordinary  96.50
ANGLE Technology LLC US  Membership units  100.00
* subsidiary held directly
The principal activity of these businesses for the last relevant financial year was as follows:
Principal Subsidiaries Principal activity
ANGLE Partnerships Limited Dormant
ANGLE Technology Licensing Limited Dormant
ANGLE Technology Limited Principal UK trading company – consulting and management services
ANGLE Technology Ventures Limited Establishment and growth of technology companies
ANGLE Ventures Limited To channel EIS and VCT funds for the establishment and growth of technology companies
Progeny bioVentures Limited Establishment and growth of biotech companies
ANGLE Technology LLC US subsidiary covering all of Group’s business ANGLE plc  Annu Al Repo Rt And Accounts 2006
50
12 Pro Perty, Plant and equi Pment
        Fixtures, 
      Computer Laboratory fittings and
      equipment equipment equipment  Total
      £ £ £ £
Cost
At 1 May 2004      140,250 – 58,666 198,916
Additions      42,553 32,716 – 75,269
Exchange movements      (1,304) – (251) (1,555)
At 30 April 2005      181,499 32,716 58,415 272,630
Additions      47,208 56,616 12,444 116,268
Disposals      (51,062) – (6,481) (57,543)
Exchange movements      1,006 – 160 1,166
At 30 April 2006      178,651 89,332 64,538 332,521
Depreciation
At 1 May 2004      109,342 – 57,615 166,957
Charge for the year      24,068 545 1,039 25,652
Exchange movements      (990) – (239) (1,229)
At 30 April 2005      132,420 545 58,415 191,380
Charge for the year      33,781 12,236 3,277 49,294
Disposals      (50,003) – (6,481) (56,484)
Exchange movements      757 – 160 917
At 30 April 2006      116,955 12,781 55,371 185,107
Net book value
At 30 April 2006      61,696 76,551 9,167 147,414
At 30 April 2005      49,079 32,171 – 81,250
At 30 April 2004      30,908 – 1,051 31,959
Included above are assets held under finance leases as follows:
        Fixtures,
      Computer Laboratory fittings and
      equipment equipment equipment Total
      £ £ £ £
Net book value
At 30 April 2006      890 49,255 – 50,145
At 30 April 2005      2,670 – – 2,670
Depreciation charge for the year
At 30 April 2006      1,780 5,473 – 7,253
At 30 April 2005      10,913 – – 10,913
Notes to the consolidated financial statements continued
 for the year ended 30 a Pril 2006  ANGLE plc  Annu Al Repo Rt And Accounts 2006
51
13 intangible assets
        2006 2005
Computer software        £ £
Cost
At 1 May    6,965 –
Additions    519 6,965
At 30 April    7,484 6,965
Amortisation
At 1 May    2,202 –
Charge for the year    1,707 2,202
At 30 April    3,909 2,202
Net book value
At 30 April    3,575 4,763
14 o ther financial assets and financial liabilities 
The Group’s financial instruments comprise cash, treasury deposits, overdraft, finance leases and various items such as trade 
receivables and trade payables which arise directly from its operations. 
In addition the Group holds an investment portfolio comprising loans and equity investments (listed and unlisted) in technology 
based companies (Note 11). 
It is the Group’s policy that no trading in financial derivatives shall be undertaken.
The main risks arising from the Group’s financial instruments are adverse interest rate movements, adverse currency rate 
movements, liquidity risk and investment risk.
f inancial assets 
Financial assets of the Group comprise cash at bank and in hand as well as treasury deposits and loan notes. Other financial 
assets on which no interest is earned comprise non-current and current asset investments and details are provided in Note 11.  
It is the Group’s policy to place surplus cash resources on deposit at both floating and fixed term deposit rates of interest with 
the objective of maintaining a balance between accessibility of funds and competitive rates of return. Fixed term deposits are  
for varying periods ranging from one to six months, to the extent that cash flow can be reasonably predicted.
f inancial liabilities
Financial liabilities of the Group in the normal course of business comprise overdraft facilities and finance leases (see Note 17  
for profile), but not borrowings. It is the Group’s policy to use various financial instruments with floating and fixed rates of interest 
with the objective of maintaining a balance between continuity of funding, matching the liability with the use of the asset, and 
finding flexible funding options for a reasonable charge. 
The Group currently does not utilise overdraft facilities. The Group believes that it has a good long-standing banking relationship 
and that these facilities can be reinstated if required. Finance leases and hire purchase agreements are held under fixed rate 
contracts. The Group has no long term borrowings or undrawn committed borrowing facilities. Therefore the Group is not 
exposed to any interest rate risk on its financial liabilities. ANGLE plc  Annu Al Repo Rt And Accounts 2006
52
14 o ther financial assets and financial liabilities CONTINUED
interest rate Profile
The Group’s financial assets and financial liabilities have the following interest rate profile:
  Fixed Floating Interest 2006 Fixed Floating Interest 2005
  rate
1
 rate
2
 free Total rate
1
 rate
2
 free Total
  £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Financial assets
Investments (non-current)  – – 1,642 1,642 – – 2,515 2,515
Investments (current)  – – 4,868 4,868 – – 819 819
Property, plant and equipment  – – 147 147 – – 81 81
Intangible assets  – – 4 4 – – 5 5
Trade and other receivables
(non-current)  – – – – – 240 – 240
Trade and other receivables 
(current)  – 240 985 1,225 – – 858 858
Cash and cash equivalents  – 7,716 519 8,235 – 5,688 (153) 5,535
Total financial assets  – 7,956 8,165 16,121 – 5,928 4,125 10,053
Financial liabilities
Trade and other payables  – – 1,592 1,592 – – 734 734
Obligations under finance leases
(non-current)  27 – – 27 1 – – 1
Obligations under finance leases 
(current)  20 – – 20 5 – – 5
Total financial liabilities  47 – 1,592 1,639 6 – 734 740
1
 Fixed rate liabilities attracted interest of between 10.9% and 12.2% during the year (2005: 9.8% to 12.2%).
2
  Floating rate cash deposits in sterling earn interest at 0.5% below the Bank of England Base rate. The weighted average interest rate on sterling cash deposit for 
this period was 4.6% (2005: 4.2%). The weighted average interest rate on US dollar cash deposit for this period was 2.6% (2005: 1.8%). The floating rate loan note 
earns interest at 3% above LIBOR for the period of the loan.
3
 Cash liabilities (overdraft) did not attract interest rates due to their right of offset with the floating rate cash deposits.
With the exception of Non-current investments and obligations under finance leases, all amounts have maturity dates of less 
than 12 months (2005: Non-current investments and £239,570 of Trade and other receivables greater than 12 months).
f oreign currency risk The Group has overseas subsidiaries, the revenues and expenses of which are denominated in sterling and US dollars. As a  
result, the Group’s Sterling Income statement and Balance sheet may be affected by movements in the US dollar : Sterling 
exchange rate.
The majority of the Group’s operating revenues and expenses is in Sterling and US dollars. Sales are priced in Sterling or US 
dollars for preference although the Group has a limited amount of revenues and currencies denominated in other currencies. A 
natural hedge exists through the matching of anticipated foreign currency operating expenses with foreign currency revenues. 
The excess exposure over and above this natural hedge is managed for all significant foreign currencies using forward currency 
contracts or currency swaps. In exceptional circumstances the Board may approve of contracts in excess of twelve months.
h edging
Other than the natural hedge, the Group did not hedge its financial transactions in 2006 or 2005.
Notes to the consolidated financial statements continued
 for the year ended 30 a Pril 2006  ANGLE plc  Annu Al Repo Rt And Accounts 2006
53
14 o ther financial assets and financial liabilities CONTINUED
c urrency Profile
The Group’s financial assets and financial liabilities have the following currency profile:
      2006   2005
    Sterling US dollar Total Sterling US dollar Total
    £’000 £’000 £’000 £’000 £’000 £’000
Financial assets
Investments (non-current)    1,642 – 1,642 2,515 – 2,515
Investments (current)    4,868 – 4,868 819 – 819
Property, plant and equipment    127 20 147 76 5 81
Intangible assets    3 1 4 5 – 5
Trade and other receivables (non-current)   – – – 240 – 240
Trade and other receivables (current)    1,114 111 1,225 687 171 858
Cash and cash equivalents    8,157 78 8,235 3,875 1,660 5,535
Total financial assets    15,911 210 16,121 8,217 1,836 10,053
Financial liabilities
Trade and other payables    1,308 284 1,592 641 93 734
Obligations under finance leases (non-current)   27 – 27 1 – 1
Obligations under finance leases (current)   20 – 20 5 – 5
Total financial liabilities    1,355 284 1,639 647 93 740
market and liquidity risk The principal risk to which the Group is exposed is liquidity risk. The nature of the Group’s activities means it finances its 
operations through retained earnings, including equity disposals, and the issue of new shares to investors. The principal cash 
requirements are in relation to developing new ventures, funding investments and meeting working capital requirements. The 
Group seeks to manage liquidity through planning, forecasting, careful cash management and managing the investment risk. 
Early stage companies typically experience significant negative cash flows, which ANGLE covers initially until sufficient progress 
is made to attract further funding. Investments may be unable to obtain financing due to lack of operational progress or market 
conditions and the Group may feel it necessary to provide additional investment and/or management time to support these 
companies further. Adverse market conditions may also delay liquidity events, thereby requiring additional investment, and 
ANGLE may also find it difficult to raise additional capital under these conditions.
investment risk Equity investments are held to achieve capital growth in their value with the intention of subsequent disposal at a profit. The  
main risks arising from these equity investments is technological and market price risk. The Group seeks to manage investment  
risk by using investment appraisal processes and monitoring procedures with regular reports made to the Board on the status of 
investments. The Group’s Progeny
®
 model is built on robust risk management processes combined with experienced management.
f air values of financial assets and liabilities
Other than as disclosed, the Directors believe that the fair value and the book value of financial assets and financial liabilities is 
not materially different. Trade payables and receivables have a remaining life of less than one year so their value on the balance 
sheet is considered to be a fair approximation of fair value. The valuation policy for investments is detailed in Note 1.5.  ANGLE plc  Annu Al Repo Rt And Accounts 2006
54
15 t rade and other receivables
        2006 2005
        £ £
Non-current assets:
Amounts owed by investments    – 239,570
Current assets:
Trade receivables    494,239 406,829
Amounts owed by investments    239,570 –
Taxation    141,883 10,040
Other receivables    74,138 10,394
Prepayments and accrued income    274,828 430,478
    1,224,658 857,741
16 t rade and other Payables
 
        2006 2005
        £ £
Current liabilities:
Trade payables    540,117 262,542
Other taxes and social security costs    100,409 97,493
Other payables    – 1,000
Accruals and deferred income    951,836 372,527
    1,592,362 733,562
17 o bligations under finance leases
        2006 2005
        £ £
Non-current liabilities:
Obligations under finance leases    27,363 1,316
Current liabilities:
Obligations under finance leases    19,557 5,038
Net obligations under finance lease    46,920 6,354
The Group was committed to making the following payments under finance leases:
        2006 2005
        £ £
Net obligations under finance leases
Repayable within one year    22,371 5,912
Repayable between one and five years    33,530 1,576
    55,901 7,488
Finance charges and interest allocated to future accounting periods    (8,981) (1,134)
    46,920 6,354
Obligations under finance leases are secured on the assets to which they relate. The fair value of the lease obligations 
approximates their carrying amount.
Notes to the consolidated financial statements continued
 for the year ended 30 a Pril 2006  ANGLE plc  Annu Al Repo Rt And Accounts 2006
55
18 share ca Pital
The share capital of the Company is shown below:
        2006 2005
        £ £
Authorised
50,000,000 (2005 and 2004: 40,000,000) ordinary shares of 10p each    5,000,000 4,000,000
Allotted, called up and fully paid
27,132,931 (2005: 16,706,484, 2004: 16,696,484) ordinary shares of 10p each    2,713,293 1,670,648
The Company has one class of ordinary shares which carry no right to fixed income. 
On 29 March 2006, the authorised share capital was increased to £5,000,000 by the creation of 10,000,000 further ordinary  
shares of 10p each.
On 30 and 31 March 2006 the Company issued 10,205,288 new ordinary shares with a nominal value of 10p at an issue price of 
79p with regard to a placing of shares realising net proceeds of £7,376,972. In addition a further 201,159 new ordinary shares with  
a nominal value of 10p were issued to Mulier Capital as part-consideration for its services in connection with the placing.
During the year 20,000 (2005: 10,000) shares with a nominal value of 10p per share were issued as a result of the exercise of share 
options. In 2005 there were no other issues of shares apart from those relating to share options.
19 share based Payments
c ompany The Company operates Approved and Unapproved Share Option Schemes as a means of encouraging ownership and aligning 
interests of staff and external shareholders. Share options were a key part of the remuneration package and were granted at the 
discretion of the Remuneration Committee taking into account the need to motivate, retain and recruit high calibre executives. 
The Company has introduced a new remuneration scheme and options are expected to only be used in exceptional 
circumstances going forward.
Options are not exercisable until three years after the date of grant and cease to be exercisable after seven years from the date 
of grant. Share option agreements in place require the employee to reimburse the Company for the cost of employer’s National 
Insurance Contributions and other equivalent taxes, and accordingly the Company does not accrue for such taxes that would 
otherwise be due on share option gains. 
The movement in the number of employee share options is set out below:
       2006  2005
      2006 Weighted 2005 Weighted
      Number average Number average
      of share exercise of share exercise
      options price (p) options price (p)
Outstanding at 1 May  3,392,593 134.6 3,175,800 135.8
During the year
Granted  1,688,394 95.4 293,393 128.2
Exercised  (20,000) 100.0 (10,000) 100.0
Lapsed  (21,000) 142.9 (32,600) 199.4
Cancelled  (115,970) 142.1 (34,000) 138.8
Outstanding at 30 April  4,924,017 121.1 3,392,593 134.6
Capable of being exercised at 30 April  1,297,513 152.9 918,513  178.3
Options are issued at market price, with the exception of tranche 10 (see table over) which were issued at the placing price.  
The options outstanding at 30 April 2006 had a weighted average remaining contractual life of five years and ten months  
(2005: six years and four months). 
The Company uses the ‘Black-Scholes’ model to determine the fair-value of the Company’s share options. The Group has elected 
to apply the share-based payment exemption under IFRS 1. The Company has not applied IFRS 2 to those options granted 
before 7 November 2002. ANGLE plc  Annu Al Repo Rt And Accounts 2006
56
19 share based Payments CONTINUED
aSS umption S
The following assumptions are used in the model to determine the fair value of share options at the respective date of grant:
     Share price  Risk 
   Excercise Ordinary at date of  free Life of
   price shares under grant Expected interest options Expected
Tranche Date of grant   £ option £ volatility rate (years) dividends
Employee options
1 18 July 2003   1.000 708,000 1.000 30.41% 4.11% 6 Nil
2 14 January 2004   1.000 174,687 1.000 31.37% 4.56% 6 Nil
3 17 March 2004   1.440 850,000 1.440 31.35% 4.56% 6 Nil
4 19 July 2004   1.280 109,375 1.280 30.78% 5.01% 6 Nil
5 01 October 2004   1.215 77,778 1.215 30.03% 4.80% 6 Nil
6 08 October 2004   1.215 41,152 1.215 29.99% 4.72% 6 Nil
7 24 January 2005   1.385 30,000 1.385 29.39% 4.49% 6 Nil
8 01 Febuary 2005   1.425 35,008 1.425 29.37% 4.48% 6 Nil
9 29 July 2005   1.260 537,338 1.260 29.24% 4.24% 6 Nil
10 30 March 2006   0.790 601,056 0.840 30.00% 4.39% 5 Nil
11 27 April 2006   0.835 550,000 0.835 30.00% 4.63% 5 Nil
Advisor options (part-payment for services)
1 17 March 2004   1.440 312,500 1.440 31.33% 4.52% 5 Nil
Expected volatility is derived from observation of the volatility of quoted shares in similar sectors to the Company.
The expected life used in the model is based on management’s best estimate taking into account the effects of non-
transferability, exercise restrictions and behavioural conditions.
On 30 April 2006, 312,500 options with an exercise price of £1.44 (representing 5% of the value of the Placing Shares at the 
Placing Price) over ordinary shares of 10p each in the Company were outstanding to KBC Peel Hunt (2005 and 2004: 312,500 at 
£1.44). The options were issued as part consideration for its services in connection with the flotation and placing in March 2004, 
vested immediately and cease to be exercisable on 10 March 2011.
c ontrolled inve Stment S
The key disclosures that enable the user of the financial statements to understand the nature and extent of share-based payment 
arrangements relate to ANGLE plc and not to the Controlled investments.
Controlled investments individually operate Unapproved, or equivalent, share option schemes as a means of attracting start-up 
management, encouraging ownership and aligning interests of staff with shareholders. Share options are a key part of the 
remuneration package and are granted at the discretion of the individual controlled entity boards taking into account the need 
to recruit, motivate and retain high calibre executives. 
Controlled entities unapproved share option schemes typically have a management option pool of 15% of the issued share 
capital. Options are typically 1) granted at market value 2) have vesting and/or performance conditions and 3) lapse after a period 
of 10 years from the date of grant. There are no legal or constructive obligations to repurchase or settle options in cash.
Share option agreements in place in the UK require the employee to reimburse the Company for the cost of employers’ National 
Insurance Contributions and other equivalent taxes, and accordingly the Company does not accrue for such taxes that would 
otherwise be due on share option gains. 
Market prices do not exist for such early stage Controlled investments and, in the absence of market prices, fair value is 
estimated using a valuation technique to value the instrument on the measurement date in an arm’s length transaction between 
knowledgeable, willing parties.
The share based payment charge for controlled entities amount to £14,247 (2005: £nil).
Notes to the consolidated financial statements continued
 for the year ended 30 a Pril 2006  ANGLE plc  Annu Al Repo Rt And Accounts 2006
57
20 c ontingent liabilities
The Group had no contingent liabilities at 30 April 2006 (2005: £nil).
21 g uarantees and other financial commitments
The Group has obligations under finance leases as shown in Note 17. The Group leases office accommodation on leases  
of generally less than one year with monthly rental payments and has a number of retainers with professional advisors. 
In addition the Group had the following financial commitments that it had contracted but not provided for:
        2006 2005
        £ £
Capital investments     – 105,744
Letters of support    – 10,000
Capital investments relates to the Group’s follow on investment in Acolyte Biomedica at its last funding round in February 2004. 
The Group agreed to invest a total of £460,708 over a period of two years in order to maintain its equity holding in the Company. 
At 30 April 2005, a balance of £105,744 remained due, pending the meeting of further investment milestones which were 
subsequently met.
The Group has provided letters of support to certain of its investments at the year end up to an amount of £nil (2005: £10,000) 
and has agreed not to call up debts in relation to services provided until the earlier of the date when new equity investment is 
secured, and 12 months from the date of the letter of support.
22 r elated Party transactions
The Group provided executive management and support services to, and incurred expenditure on behalf of, early stage 
investments as follows:
        2006 2005
        £ £
Acolyte Biomedica Limited    19,078 36,582
Corpora plc    6,000 23,731
NeuroTargets Limited    21,846 20,255
Provexis plc    13,077 153,868
At the balance sheet date amounts were due from investments as follows:
        2006 2005
        £ £
Acolyte Biomedica Limited    588 9,216
Corpora plc    – 30,728
NeuroTargets Limited    – 6,201
Provexis plc    – 68,281
d irector S’ intere St S – related party intere St S and tran Saction S
Apart from the interests disclosed in the remuneration report on pages 32 to 34, none of the Directors had any interest at any 
time during the year ended 30 April 2006 in the share capital of the Company or its subsidiaries. However, Ian Griffiths holds an 
interest in an investment as a result of purchasing 938 shares in NeuroTargets Ltd for £15,008 representing 1.1% of the issued 
share capital at 30 April 2006 (2005: 938 shares representing 1.1%)
No Director had a material interest in a contract, other than a service contract, with the Company or its subsidiaries, or 
investments during the year.
23 Post balance sheet events
In July 2006 the Group entered into a twenty year Partnership Agreement with The University of Reading under which it has the 
exclusive right, but not the obligation, to invest in all the University IP that is commercialised. Where ANGLE exercises this right, it 
will invest under a set formula obtaining an equity stake of 60% in each spin-out company for an investment of up to £0.5 million. 
Additionally ANGLE will receive a 15% share in all commercial returns from University IP , both licensing and spin-out, in which 
ANGLE does not invest. In exchange ANGLE will provide consultancy support to the University on IP commercialisation. ANGLE plc  Annu Al Repo Rt And Accounts 2006
58
24 imPact of the first time ado Ption of ifrs /ias
aPP lication of ifrs 1
The Group’s Financial Statements for the year ended 30 April 2006 are the first annual Financial Statements that comply with 
IFRS. These Financial Statements have been prepared on the basis set out in Note 1.
The Group’s transition date is 1 May 2004 (the start of its 2005 financial year). The Group prepared its opening Balance Sheet  
at that date. The reporting date of these Financial Statements is 30 April 2006.
In preparing the Consolidated Financial Statements the Group has applied the mandatory exceptions, as applicable, and the 
following exemptions:
The Group has elected to apply the share-based payment exemption. The Group has not applied IFRS 2 to either those 
options granted before 7 November 2002 or those which had vested by 1 May 2005.
The Group has elected to apply the foreign exchange exemption and set cumulative foreign exchange translation differences 
to zero at the date of transition.
The main changes from preparing the results under IFRS rather than UK GAAP that affect the Group loss and net asset  
position are:
c hanges in the scope of consolidation of subsidiaries – Under UK GAAP Controlled Investments were accounted for as 
investments and held at cost on the Balance Sheet. Under IFRS Controlled Investments are consolidated.
c hanges to fair value of investments – Under UK GAAP investments were held at cost subject to impairment. Under IFRS 
investments which are not controlled are revalued to fair value at each balance sheet date with the movement in fair value 
being recorded through the Income Statement.
expensing of share-based payments – Under IFRS share based payments are measured at fair value and charged over  
the vesting period. Under UK GAAP such a charge was not required, although under FRS 20 this would have been required  
in the future.
IFRS also results in a number of other minor changes such as holiday pay accruals, the reclassification of certain computer 
software from tangible to intangible assets and the definition of cash and cash equivalents. 
The adoption of IFRS does not impact the amount of cash previously disclosed under UK GAAP in any of the periods of account 
in the annual Financial Statements.
ANGLE plc will continue to produce its company-only accounts under UK GAAP and therefore none of the IFRS adjustments 
impacts on its Balance Sheet or reserves.
The reconciliations below provide an explanation of the effect of the transition to IFRS
1 Balance Sheet reconciliation at 1 May 2004 (transition balance sheet)
2 Reconciliation of Income Statement for year to 30 April 2005
3 Balance Sheet reconciliation at 30 April 2005
 
‡
‡
‡
‡
‡
Notes to the consolidated financial statements continued
 for the year ended 30 a Pril 2006  ANGLE plc  Annu Al Repo Rt And Accounts 2006
59
24 imPact of the first time ado Ption of ifrs /ias CONTINUED
balance sheet reconciliation at 1 may 2004 ( t ransition date)
      UK GAAP Effect of transition to IFRS Reported
      in IFRS Non IAS 27 IAS 27 (A) under
      format adjustments adjustments IFRS
     Notes £ £ £ £
Assets
Non-current assets
Investments     B 516,782 1,025,337 (3) 1,542,116
Property, plant and equipment      31,959 – – 31,959
Trade and other receivables      239,570 – – 239,570
Total non-current assets      788,311 1,025,337 (3) 1,813,645
Current assets
Investments     B 2,398,177 (30,356) – 2,367,821
Trade and other receivables      625,503 – – 625,503
Cash and cash equivalents      8,246,871 – – 8,246,871
Total current assets      11,270,551 (30,356) – 11,240,195
Total assets      12,058,862 994,981 (3) 13,053,840
Equity and liabilities
Equity
Issued capital      1,669,648 – – 1,669,648
Share premium account     C 7,537,331 (161,813) – 7,375,518
Share based payment reserve     C – 253,502 – 253,502
Other reserves      2,553,356 – – 2,553,356
Retained earnings     D (770,943) 869,632 – 98,689
Total equity      10,989,392 961,321 – 11,950,713
Liabilities
Non-current liabilities
Obligations under finance leases      6,354 – – 6,354
Current liabilities
Trade and other payables      1,052,578 33,660 (3) 1,086,235
Obligations under finance leases      10,538 – – 10,538
Total current liabilities      1,063,116 33,660 (3) 1,096,773
Total liabilities      1,069,470 33,660 (3) 1,103,127
Total equity and liabilities      12,058,862 994,981 (3) 13,053,840
The major contributors to the difference between UK GAAP and IFRS were:
A Changes in the scope of consolidation (IAS 27) means that investments that are controlled entities must be consolidated, however, there were no significant 
adjustments in the year. 
B  Non-current asset investments previously carried at cost have been stated at fair value (IAS 39). Current asset investments of £2,398,177 (UK GAAP) have been 
amended to bid price. 
C  Share based payment reserve has been adjusted for share option charges – £253,502 (IFRS 2). Share premium account reflects the share based payment charge 
arising from options issued as part consideration for the placing.
D Other adjustments relate to items described in A to C above and some other minor adjustments. 
  ANGLE plc  Annu Al Repo Rt And Accounts 2006
60
24 imPact of the first time ado Ption of ifrs /ias CONTINUED
r econciliation of income s tatement for year to 30 aP ril 2005
      UK GAAP Effect of transition to IFRS Reported
      in IFRS Non IAS 27 IAS 27 (E) under
      format adjustments adjustments IFRS
     Notes £ £ £ £
Turnover 
Consulting and Management      3,897,714 – – 3,897,714
Ventures      234,437 – – 234,437
      4,132,151 – – 4,132,151
Investments
Provision for diminution in value      F (1,566,372) 1,566,372 – –
Change in fair value     F – (1,583,636) – (1,583,636)
      (1,566,372) (17,264) – (1,583,636)
Operating costs 
Consulting and Management      (3,375,944) (13,253) – (3,389,197)
Ventures      (1,785,400) (18,738) – (1,804,138)
Controlled investments      – – (247,691) (247,691)
Share based payments     G – (283,490) – (283,490)
      (5,161,344) (315,481) (247,691) (5,724,516) 
Operating profit/(loss)      (2,595,565) (332,745) (247,691) (3,176,001)
Net finance income      242,184 – – 242,184
Profit/(loss) before tax      (2,353,381) (332,745) (247,691) (2,933,817)
Tax      37,850 – 10,040 47,890
Profit/(loss) for the year      (2,315,531) (332,745) (237,651) (2,885,927)
The major contributors to the difference between UK GAAP and IFRS were:
E Changes in the scope of consolidation (IAS 27) means that investments that are controlled entities must be consolidated. The adjustments here represent the 
consolidation of the results or investment subsidiaries previously not consolidated but treated as a fixed asset investment and held on the balance sheet at cost.
F A provision for diminution in value recognised under UK GAAP below operating profit or loss has been reclassified to changes in fair value of investments – loss 
£1,566,372 and amended to bid-price, along with some other minor fair value adjustments.
G Operating costs have been adjusted for a share option charge in the year of £283,490.
Notes to the consolidated financial statements continued
 for the year ended 30 a Pril 2006  ANGLE plc  Annu Al Repo Rt And Accounts 2006
61
24 imPact of the first time ado Ption of ifrs /ias CONTINUED
balance sheet reconciliation at 30 aP ril 2005
      UK GAAP Effect of transition to IFRS Reported
      in IFRS Non IAS 27 IAS 27 (H) under
      format adjustments adjustments IFRS
     Notes £ £ £ £
Assets
Non-current assets
Investments     I 1,755,779 1,040,703 (280,965) 2,515,517
Property, plant and equipment      52,742 (4,763) 33,271 81,250
Intangible assets      – 4,763 – 4,763
Trade and other receivables      239,570 – – 239,570
Total non-current assets      2,048,091 1,040,703 (247,694) 2,841,100
Current assets
Investments     I 881,805 (62,986) – 818,819
Trade and other receivables      847,584 – 10,157 857,741
Cash and cash equivalents      5,548,638 (13,750) – 5,534,888
Total current assets      7,278,027 (76,736) 10,157 7,211,448
Total assets      9,326,118 963,967 (237,537) 10,052,548
Equity and liabilities
Equity
Issued capital      1,670,648 – – 1,670,648
Share premium account     J 7,543,677 (161,813) – 7,381,864
Share based payment reserve     J – 536,992 – 536,992
Other reserves      2,553,356 – – 2,553,356
Translation reserve     K – (42,990) – (42,990)
Retained earnings     K (3,129,464) 579,876 (237,650) (2,787,238)
Total equity      8,638,217 912,065 (237,650) 9,312,632
Liabilities
Non-current liabilities
Obligations under finance leases      1,316 – – 1,316
Current liabilities
Trade and other payables      681,547 51,902 113 733,562
Obligations under finance leases      5,038 – – 5,038
Total current liabilities      686,585 51,902 113 738,600
Total liabilities      687,901 51,902 113 739,916
Total equity and liabilities      9,326,118 963,967 (237,537) 10,052,548
The major contributors to the difference between UK GAAP and IFRS were:
H Changes in the scope of consolidation (IAS 27) means that investments that are controlled entities must be consolidated. The adjustments here represent the 
consolidation of the results or investment subsidiaries previously not consolidated, together with the removal of investments previously treated as a fixed asset 
investment and held on the balance sheet at cost – £280,965.
I Non-current asset investments previously carried at cost have been stated at fair value comprising the brought forward adjustment together with the fair value 
uplift in the period. Current asset investments of £881,805 (UK GAAP) have been amended to bid price. 
J Share based payment reserve has been adjusted for share option charges brought forward - £253,502, together with the charge in the period – £283,490 (IFRS 2). 
Share premium account reflects the share based payment charge arising from options issued as part consideration for the placing.
K Other adjustments relate to items described in H to J above and some other minor adjustments. Cumulative exchange differences arising on consolidation are 
reclassified from retained earnings to translation reserve. 
  ANGLE plc  Annu Al Repo Rt And Accounts 2006
62
 Company
        2006 2005
       Notes £ £
Fixed assets
Investments   C2 1,044,650 1,044,648
Current assets
Debtors – due after one year   C3 13,770,645 8,169,677
Cash at bank and in hand    1,761,746 –
    15,532,391 8,169,677
Net assets    16,577,041 9,214,325
Capital and reserves
Called up share capital   C4 2,713,293 1,670,648
Share premium account   C4 13,863,748 7,543,677
Shareholders’ funds – equity interests   C5 16,577,041 9,214,325
The Financial Statements were approved by the Board and authorised for issue on 26 July 2006 and signed on its behalf by:
h f ullerton a d w n ewland
Director Director
Company balance sheet
 as at 30 a Pril 2006  ANGLE plc  Annu Al Repo Rt And Accounts 2006
63
c 1 a ccounting Policies
c 1.1 a ccounting convention and com Pliance with accounting standards
The Financial Statements have been prepared under the historical cost convention, in accordance with the Companies Act 1985 
and applicable United Kingdom accounting standards. A summary of the more important accounting policies which have been 
applied consistently throughout the year are set out below.
c 1.2 basis of consolidation 
Sub Sidiarie S
Unless otherwise stated, subsidiary undertakings are consolidated on the basis of the acquisition method of accounting.  
Under this method of accounting the results of trading subsidiaries sold or acquired are included in the Profit and Loss  
Account up to, or from the date control passes. Intra-group transactions and balances are eliminated fully on consolidation  
and the consolidated accounts reflect external transactions only. The Group uses trading subsidiaries as a medium through 
which it conducts its business. 
c 2 investments
         
Shares in subsidiaries         £
Cost
At 1 May 2005         1,044,648
Additions         2
At 30 April 2006         1,044,650
At the year end the Company directly owned 100% of the ordinary share capital of the previous holding company ANGLE 
Technology Limited. The amount brought forward of £1,044,648 relates to the acquisition of the whole of the issued share capital 
in ANGLE Technology Limited at book value in preparation for the flotation on AIM.
Details of the Company’s subsidiary undertakings at 30 April 2006 are shown in Note 11 to the Consolidated Financial Statements 
along with other interests held indirectly through subsidiary undertakings. ANGLE Technology Limited, ANGLE Partnerships 
Limited and ANGLE Ventures Limited are held directly.
c 3 d ebtors falling due after more than one year
Amounts owed by Group undertakings         £
At 1 May 2005         8,169,677
Additions         5,600,968
At 30 April 2006         13,770,645
ANGLE plc provides a centralised treasury function to trading subsidiaries. The amounts due from Group undertakings are 
interest free, unsecured and have no fixed date of repayment.
Notes to the Company financial statements
 f or the year ended 30 a Pril 2006  ANGLE plc  Annu Al Repo Rt And Accounts 2006
64
c 4 share ca Pital and reserves
        Share Share
        capital premium
        £ £
At 1 May 2005        1,670,648 7,543,677
Issue of share capital        1,042,645 6,320,071
At 30 April 2006        2,713,293 13,863,748
Details of the Company’s authorised share capital and changes in its issued share capital and share premium account can be 
found in the Consolidated Statement of Changes in Equity on page 39 and Note 18 to the Consolidated Financial Statements  
on page 55.
Details of the Company’s share options and warrants can be found in Note 19 to the consolidated financial statements  
on page 55.
On 30 April 2006 the following employee options over ordinary shares of 10p each in the Company were outstanding:
        2006 2005
       Option Number of Number of
Year of grant (each year ended 30 April)  Exercise period  price options options
2000 02/03/2003–09/03/2007   £1.00 419,313 439,313
2001 16/02/2004–15/02/2008   £2.50 441,200 457,200
2002 31/10/2004–21/01/2009   £2.50 16,000 22,000
2003 27/09/2005–26/09/2009   £1.00 421,000 448,000
2004 18/07/2006–14/01/2011   £1.00 862,687 882,687
2004 17/03/2007–16/03/2011   £1.44 810,000 850,000
2005 19/07/2007–01/02/2012   £1.215–£1.425 293,393 293,393
2006 29/07/2008–28/07/2012   £1.26 509,368 –
2006 30/03/2009–26/04/2013   £0.79–£0.835 1,151,056 –
    4,924,017 3,392,593
On 30 April 2006, 312,500 options with an exercise price of £1.44 (representing 5% of the value of the Placing Shares at the 
Placing Price) over ordinary shares of 10p each in the Company were outstanding to KBC Peel Hunt (2005 and 2004: 312,500 at 
£1.44). The options were issued as part consideration for its services in connection with the flotation and placing in March 2004, 
vested immediately and cease to be exercisable on 10 March 2011.
c 5 Profit and loss account
As permitted by Section 230 of the Companies Act 1985, the Holding Company’s profit and loss account has not been included 
in these Financial Statements. The profit for the financial year was £nil (2005: £nil).
The audit fee for the Company was borne by another Group subsidiary company.
c 6 r elated Party transactions
The Company has relied on the exemptions given in FRS 8 not to disclose transactions between itself and its subsidiaries that 
have been eliminated on consolidation.
c 7 d irectors’ emoluments and em Ployee information
The remuneration of the Directors is borne by Group subsidiary undertakings. Full details of their remuneration can be found in 
the Directors’ Remuneration Report on pages 32 to 34.
Notes to the Company financial statements continued
 f or the year ended 30 a Pril 2006  CONSULTING
COMMERCIALISATION
‡ Strategies
‡ Policies
‡ Programmes
‡ Due diligence
MANAGEMENT
TURN KEY SOLUTIONS
‡ Science Parks
‡ Product development
‡ Investment funds
‡ Programmes
VENTURES
VALUE CREATION 
‡ Start-up management
‡ Seed funding
‡ IP partners
‡ Commercialisation 
‡ Exit
TECHNOLOGY
Technology wealth creation Directors and Advisors 
what we do ANGLE has created an integrated business model 
that offers quoted access to early stage technology 
investments. ANGLE’s proprietary Progeny
® 
process 
addresses the critical issue of early stage management 
in intellectual property (IP) commercialisation 
maximising returns and minimising risk.
Directors Hance Fullerton OBE, Chairman 
ANR
 Andrew D W Newland, Chief Executive
 Ian F Griffiths, Finance Director 
 David W Quysner, Non-executive Director 
ANR
 
 
A
 – Audit Committee
 
N
 – Nomination Committee
 
R
 – Remuneration Committee
Secretary Ian F Griffiths
Company number 4985171
Registered office and Surrey Technology Centre
Business address The Surrey Research Park
 Guildford
 Surrey GU2 7YG
 +44 (0)1483 295830
 www.ANGLEplc.com 
Auditors Baker Tilly
 The Clock House
 140 London Road
 Guildford
 Surrey GU1 1UW
Nominated Advisor Collins Stewart Ltd
and Broker 88 Wood Street,
 London EC2V 7QR
Registrars CRG Capita
 34 Beckenham Road
 Beckenham
 Kent BR3 4TU
Bankers National Westminster Bank Bank of America
 PO Box 1 300 East Main Street
 1 Stoke Road Charlottesville
 Guildford Virginia VA 22902
 Surrey GU1 3ZR
Solicitors/Lawyers Pinsent Masons Holland & Knight
 Dashwood House 1600 Tysons Boulevard
 69 Old Broad Street Suite 700, Mclean
 London EC2M 1NR Virginia VA 22102-4867
 
Financial Public Relations Buchanan Communications Ltd
 45 Moorfields
 London EC2Y 9AE ANGLE plc
Surrey Technology Centre
The Surrey Research Park
Guildford GU2 7YG
T: +44 (0)1483 295830
F: +44 (0)1483 295836
E: enquiries@angleplc.com
www.ANGLEplc.com Technology wealth creation
ANGLE plc  Annual   report  and  accounts  2006  ANGLE plc   Annual  report  and  accounts  2006