Annual report
and accounts
2004 GAME is Europe's
favourite video games
retailer, with stores in 
the United Kingdom,
Ireland, France, Spain,
Sweden and Denmark.
WEL COME
TO GAME
Highlights 1
Chairman’s statement 2
Chief executive’s review 4
Commercial review 9
Directors’ biographies 11
Directors and advisers and 
financial calendar 12
Report of the directors 13
Corporate governance statement 18
Directors’ remuneration report 22
Independent auditors’ report 28
Statement of accounting policies 29
Consolidated profit and loss account 31
Consolidated balance sheet 32
Company balance sheet 33
Consolidated cash flow statement 34
Notes to the financial statements 35
Notice of Annual General Meeting 49
Five year record 52
Contents WEL COME 
TO A GROWING RETAILER
GAME HIGHLIGHTS
2004
2003
2002
2001
Pre-tax profit
(1)
£m
34.7
Number of stores
491
2004
2003
2002
2001
Turnover £m
606.7
2004
2003
2002
2001
Earnings per share p
(1)
6.63
2004
2003
2002
2001
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
1
Group turnover
up by 8.3% to £606.7m (£560.1m).
Pre-tax profit
(1)
up 4.5% to £34.7m (£33.1m). 
Earnings per share
(1)
share
increased by 10.5% to 
6.63p (6.00p).
Total dividend
doubled to 2.0p (1.0p).
(1)
before goodwill amortisation and exceptional charges Dear Owner
Results
Group turnover increased by 8.3% to £606.7 million 
(£560.1 million). Like for like sales increased by 2%. Gross 
profit margin increased from 28.1% to 28.8%, as a result of 
greater efficiency within the business as well as a greater share 
of higher-margin software sales within the mix.
Profit before tax, goodwill amortisation and exceptional charges also
increased, by 4.5% to £34.7 million (£33.2 million). Earnings per
share (EPS) before goodwill amortisation and exceptional charges are
6.63p (6.00p). The compound annual growth of this adjusted EPS
over the past 4 years is 46%. Profit before tax was £18.3 million
(£27.2 million). Basic earnings per share were 2.95p (4.40p).
Exceptional charges of £10.4 million (£0.1 million) in the year
related to the EBI settlement, closure of the loss making on-line
gaming business and the relocation costs associated with the new
Head Office and Distribution Centre in Basingstoke. The principal
element of this charge related to the settlement with a one off
payment of £8.3 million for the services agreement with EBI
which was due to continue until January 2006 and under which
£25.4 million had already been paid by GAME. The Group will
benefit from an annual cost saving of around £5 million per 
annum and the Board consider that the termination is earnings
enhancing.
Your Board is proposing a substantial increase in the final 
dividend of 173% to 1.5p (0.55p) making a total for the year of 
2p (1p). The Board anticipates a progressive policy and subject to
investment requirements future dividend cover (excluding goodwill
amortisation) will be in the range of 3.0 times to 4.0 times. 
Share buyback programme
The share buyback programme which commenced on 28 January
2003 was continued and during the year 30.2 million shares were
purchased for cancellation at an average price of 54.75p per share.
In total the Group has returned £16.84 million to shareholders since
the commencement of this buyback programme.
Directors
On 31 January 2004, John Steinbrecher, formerly group chief
executive, retired from the Board. As previously announced
Martin Long, 37, was promoted to group chief executive with
Lisa Morgan, 33, promoted to deputy chief executive.
In addition, David Thomas, 41, joined the Board as group finance
director on 15 March 2004. He was finance director for Millennium
& Copthorne Hotels Group plc and prior to that held senior financial
positions with House of Fraser plc and Forte plc.
On 14 November 2003, Jean-Paul Giraud, 58, was appointed 
a non-executive director. Until the summer of 2003 he was
Chairman and chief executive of FNAC, the largest specialist
retailer of its kind in Europe with sales of £3.5 billion in six European
countries, South America and the Far East. We welcome to our
counsels a notable international business leader who will add
invaluable experience to our drive to grow our international activities.
Staff
Our most important assets go home every night! The enthusiasm
and commitment of our people is one of our great strengths.
I should like to extend my personal thanks to everyone in the
business for their efforts during the year. 
CHAIRMAN’S STATEMENT
CHAIRMAN’S STATEMENT
CHAIRMAN’S STATEMENT
CHAIRMAN’S STATEMENT
CHAIRMAN’S STATEMENT
CHAIRMAN’S STATEMENT
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
2
New dividend DANCE PRODUCTS - FIRST
TO BE BOUGHT BY MORE
WOMEN THAN MEN
Current & future trading
In line with the wider video games market, our plans anticipate a
reduction in sales in the early part of the year, given the strong
comparable period last year which saw events such as the launch 
of Gameboy Advance SP. In the first 11 weeks to 17 April total 
group sales are down by 4% and like for like sales are down by 9%.
The sales mix has resulted in a slight improvement in the achieved
gross margin percentage. This performance is consistent with our
expectations and we remain on plan for the year. 
We do not expect the market to be easy in 2004. However, the
combination of our inherent operational expertise, market leading
position, and store opening programme (21 new stores have
opened already this year) will produce another successful year 
where we aim to outperform the market again.
The Group prospects in the medium term when new generation
products come to market, are particularly exciting.
Peter Lewis
Chairman
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
3
policy introduced Our performance in the year to 31 January 2004 reflects another
strong year for the Group with our results showing increases in
market share, turnover, gross margins and profits. 
As usual the year’s performance was dominated by Christmas
trading. During the crucial five week trading period ending 3 January
2004 like for like and total sales rose 5.6% and 9% respectively.
This performance has been delivered against the backdrop of a
slowing growth rate in the video games market and highlights 
not only the resilience of our business, but also our ability to
outperform the market as we once again saw market share gains 
in our core UK market. 
The United Kingdom video games market
In calendar year 2003 the UK games market had a total value of
£2.04 billion. The brands within the industry are now household
names, whether it be Nintendo with the Gameboy or Gamecube,
Microsoft with the Xbox, or the market leader Sony with the
PlayStation 2. Video games are part of mainstream entertainment
and demand continues to outstrip video rental and cinema.
The market has grown from £500 million in 1995 to the £2 billion
market that we enjoy today, albeit that calendar year 2003 saw a slight
decline of 1.5% from 2002. Last year saw sales of current generation
hardware formats (Gameboy Advance SP, Gamecube, PS2 and Xbox)
in the UK continue at similar levels to 2002 and an installed base
increase of over 60% to reach 10 million units in the home.
Manufacturer driven price drops resulted in a decline in the value of
the market for hardware sales of 15% to £486 million. However, the
ever increasing installed base fuelled a 15% increase in unit sales of
software, and by value an increase of 7% to £1.26 billion.
This changing shape of the market in 2003 which was a worldwide
feature, is expected to continue. We are now in a phase of
development which continues to see rapid penetration of hardware
consoles into the home, often driven by reducing manufacturer price
points. This provides the foundation of demand for more profitable
software sales – a fundamental feature of the video games market
and our own business model. 
Market positioning
GAME is the European market leader and continues to perform
exceptionally well in this market place. Total sales have increased,
like for like sales have increased and market share has improved 
on all major product categories.
Over the years we have built up a strong market position in hardware
sales. However our strength has always been our ability to sell software
and other add on products as we continue to drive our unique
consumer proposition. Our strategy is built on these core areas: 
■ a dedication to delivering the highest levels of customer service,
allowing us to continuously maintain and grow a loyal customer
base by offering them expert service and an unrivalled product
range at the best prices;
■ our Reward Card programme has 4.7 million members in the
UK alone and we continue to develop the programme with a
focus on customer service and profitability;
■ the successful implementation of new innovations, such as 
on-line retailing and the pre-owned programme, in order to
maximise the benefits of our market leading position;
■ a permanent focus on the sales mix and margin to ensure that
our operational success is converted into cash profit; and
■ leveraging the expertise gained in the UK market by building a
presence in continental Europe to provide us with further scope
for growth in the medium term.
I am pleased to say that during the year we have continued to
deliver against all of these objectives.
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
4
Maximise benefits of
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SPECIALIST
RETAILER OF
THE YEAR
MCV
Awards 2004
RETAIL 
BUYING
TEAM
MCV
Awards 2004
CUSTOMER
FOCUS AWARD
-WINNER
National Business
Awards 2003 THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
5
Store portfolio 
In the year The GAME Group has strengthened its position as the
European market leader. There were 24 net store openings in the
UK and 18 in our European markets of France, Spain and Sweden.
As at 31 January 2004 2003
Number Number
Company owned and concessions
UK and Ireland 359 335
Continental Europe 132 114
Franchises
Continental Europe 57 58
Total outlets 548 507
United Kingdom and Ireland
In 2003 we continued to outperform the market with sales in 
excess of £500 million for the first time in our history and our results
were achieved against a background of increased competition, lower
retail prices and a consequent small reduction in total market size.
In the UK we outperformed the market, increasing our market share
by more than 1%.
One factor of our business today which cannot be underestimated 
is its scale. In 2002 we re-branded to the single identity of GAME. 
In 2003 we benefited from the consumer awareness which comes
from promoting a brand which has over 350 stores – a sizeable
number compared to many retailers.
Last year saw renewed vigour in our consumer offer as we executed
a strategy to deliver a clear consumer offer demonstrating both
range and value as a proposition and at the same time broadening
our mass market appeal through in-store experience, product offering
and promotions, all the time focusing on our strengths and specialist
selling proposition. 
our market leading position
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AND EXPERT
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THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
6
Award winning
As we drive to build a 400 strong chain for Christmas 2004, we
will continue to reinvigorate the consumer offer which we delivered
in 2003, and will also look to create cost and business efficiencies,
a major feature of our investment in automation in our new
Distribution Centre in Basingstoke. This phased move will be
completed through the summer and will see a step change in
both the level of automation but also a vast increase in capacity
for our business.
Continental Europe
Our businesses in Europe continued their improvement and now
represent some 16% of Group turnover. We have created well
structured operations in each territory but they do not yet enjoy the
scale which we have established in the UK and the benefits which
are associated therewith.
The Scandinavian market shows similar characteristics to the UK
market as the majority of the products sold in this market are 
indeed the same products which we see on our shelves in the UK.
2003 saw us add 9 stores and we expect to increase our opening
plans in 2004. We have already added 2 new stores in Denmark
this year. The region continues to operate profitably. We will be
looking to further strengthen our business and management team 
in this market during the current year.
Our business in Spain has seen much progress over the last 
12 months where we added 7 stores. Just as the market saw 
strong growth, this is an area where we saw sales growth ahead 
of our other territories as we continue to expand and to refine the
retail operation. We now have 40 stores and 57 franchises. The
business continues to be profitable and whilst we grow our own
store business, we are pleased that the franchise concept remains
successful. We have been encouraged by the trading performance.
There is a very good foundation for future organic growth.
In France we have made significant progress in 2003 with 
continued investment in the infrastructure of the business to ensure
that we have solid foundations to build upon. We remodelled 25
stores to a format consistent with our UK stores. We made key 
new local management appointments ensuring that we now have
an established management team, and a complete replacement 
of the IT infrastructure both centrally and at store level enabling 
us successfully to launch a GAME Reward card in the run up to
Christmas. France is a key market for video games in Europe. 
To date our performance in France has been below our expectations
but we recognise that with 58 stores the business does not have
the critical mass to generate significant returns. This critical mass
will take time to establish and in 2004 we will pursue store
openings and review acquisition opportunities.
GAME.net
In January 2004, as previously announced, the on-line gaming
division was closed after a management review determined that it
was not likely to make a satisfactory return on capital employed.
One off closure costs of £226,000 are part of exceptional charges
for the year ended 31 January 2004.
Our on-line efforts for e-commerce through our website GAME.net
have been increased and whilst this is a small area of our business,
our year on year sales increase of over 50% was very encouraging.
Capital expenditure
Capital expenditure was £30.4 million (£22.3 million). The Group
has made an investment of £17.5 million in respect of the purchase
of land at Basingstoke and construction costs to date. This project is
nearing completion and we expect to take occupation of our new
premises at the end of May. Notwithstanding these unusually
high capital costs net cash flow from operating activities was
£36.1 million (£37.4 million) and net cash in hand (excluding long
term debt for the Basingstoke freehold property) amounted to
£25.5 million (£36.5 million).
Treasury
The Board agrees and reviews policies and financial instruments for
risk management.
The Group holds financial instruments to finance its operations and
to manage the interest rate risks arising from its sources of finance.
In addition, various financial instruments such as trade debtors and
trade creditors arise directly from the Group’s operations. Operations
are financed by a mixture of retained profits and bank borrowings.
Working capital requirements are met out of floating rate overdrafts
and retained profits. The Group does not trade in financial instruments or carry out
derivative transactions.  There is no significant foreign currency
exposure.  In planning the maturity of debt, the Group aims to match
the debt to the ability of the respective assets to generate income.
Unutilised committed borrowing facilities have been maintained in
order to provide flexibility in the management of liquidity.
Further information on borrowings and financial instruments is
contained in notes 18 and 19 to the financial statements.
The future
The GAME Group has established a reputation as a specialist retailer
that outperforms the market. It is anticipated that unit volumes for
hardware, software and peripherals will increase in 2004 although
we expect a continued pricing reduction within the market and
therefore values will be down against 2003.
We understand the dynamics of the market. We will continue to
drive our performance through new store openings and sales mix
changes that will enhance our overall margin and enable us to
meet our expectations for the year.
In the United Kingdom we aim to add up to 50 stores which will 
see us trading from over 400 stores by the key Christmas trading
period. We will drive margin improvement through the increased 
sale of software, pre-owned and peripherals and will also benefit
from the saving derived from the early settlement of the 
EBI agreement.
Our Continental European business is at a relatively early stage
of development. In each region we have now established the
management and logistics infrastructure. We will now focus on
driving organic growth through store openings. We will open in new
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
7
market leader
OVER 4 MILLION
GAMEBOY ADVANCE SP'S 
SHIPPED IN EUROPE CEO REVIEW
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THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
8
countries such as Denmark, where we opened two stores in the 
first quarter of 2004 and we will continue to review suitable
acquisition opportunities.
Overall our business is fundamentally strong and our expansion
strategy through 2004 and beyond will ensure that GAME is well
placed to benefit from the increased demand for video games
software in the near term. GAME will also be in a strong position
to benefit from the ever increasing growth in the installed base
of current generation consoles. 
In the medium to long term we are confident the market will grow
due to impending technologies such as the handheld PSP from
Sony which sees its launch in Japan later this year and in Europe
in 2005, as well as the inevitable launch of Xbox 2 from Microsoft
and the PlayStation 3 from Sony thereafter.
Martin Long
Group chief executive
All market data sourced from ChartTrack
70% of all purchases
are made with a reward card THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
9
COMMERCIAL REVIEW
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Introduction
In 2003 the Group continued to develop in each country, growing
in size and stature.
As our European businesses developed, the UK & Ireland business
confirmed its position as the clear market leader. We outperformed
the market, grew our share of the market, increased repeat purchase,
implemented strategic and targeted marketing initiatives, and
increased our mass market appeal.
The games market is changing, being driven by products such as
EyeToy, Dance: UK and The Sims. With our ability to stock the
largest range of games on the high street, we can meet the
demands of these changes.
UK and Ireland 2004
In the UK, one in four games continue to be bought from 
GAME stores, with 70% of all transactions being made with our
GAME Reward Card – an ever increasingly important marketing
communications tool unique to GAME in the video games market.
The future for GAME looks bright.  We are improving our
infrastructure by relocating our UK & Ireland Distribution Centre
and Head Office. In 2004 we will improve our property portfolio,
looking at new stores and investing in those existing; improving 
our customer appeal with communication, product ranges and
promotions; and enhancing our GAME Reward Card.  There are
many eagerly anticipated software titles due in the second half of
2004, including Halo 2 (Xbox), Gran Turismo 4 (PS2), The Sims 2
(PS2) and GTA - San Andreas (PS2).
Distribution Centre & Head Office
The Group acquired 8 acres of land in Basingstoke, Hampshire in 
May 2003. Since then, GAME has been working towards building,
equipping and running a new purpose-built Distribution Centre 
and Head Office. The linked buildings are more than adequate 
for our current and future space requirements.
The Distribution centre in Basingstoke is similar in size to our
facility in Bracknell, however the implementation of enhanced
space management delivers over twice the capacity.  Progress with
both buildings is on track, and we are in the process of managing
a phased change over with our Distribution Centre, to be
completed in August.  The phased move ensures that there is no
disruption to the service to our stores.
Other highlights from the past year include:
The opening of our first GAME Outlet store
in July and our first City of London store in
November
Our first ‘Business Oscar’, with our Customer
Focus Award win at the National Business
Awards
The implementation of a number of innovative
on-line promotions on www.GAME.net THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
10
GAME UK & Ireland 
The clear market leader,
with over 4.7 million GAME
Reward Card holders.
The business has continued
to focus on customer
experiences and as a result,
driven repeat purchase.
2004
Accelerate new store growth
and improve property portfolio
Enhance our customer appeal
Upgrade our infrastructure
Market
Population – 63.9m
Market size – US$ 2,600m
Console installed base–17 .1m
PC installed base – 44%
Source: IDG
GAME Scandinavia
GAME is Sweden’s
number 1 specialist, with an
established infrastructure in
place.
2004
Launch GAME Reward Card
Accelerate new store growth
Further establish GAME
brand
Market
Population – 23.9m
Market size – US$710m
Console installed base – 3.8m
PC installed base – 70%
GAME France
The number 2 specialist in
France, the business now 
has an experienced local
management team in place. 
2004
Accelerate new store growth
Build on brand awareness
Market
Population – 60.1m
Market size – US$1400m
Console installed base -11.1m
PC installed base – 31%
CentroMAIL Spain
The chain is Spain’s number
1 specialist, with a solid
infrastructure which includes
owned stores and franchises.  
2004 
Accelerate new store growth
Further establish brand
Market
Population – 42.7m
Market size – US$830m
Console installed base – 7 .3m
PC installed base – 26%
ENLARGING OUR STORE PORTFOLIO -
achieving expansion in all 6 countries
INVESTING IN OUR PEOPLE -
to deliver exceptional customer service
ENHANCE PRODUCT OFFERINGS
AND COMMUNICATION -
improve customer appeal
DEVELOPING OUR INFRASTRUCTURE -
new Distribution Centre open Summer 2004
STORE PORTFOLIO AS AT 31 JANUARY 2004
GAME -UK & Ireland-359 GAME -Scandinavia -35 GAME -France -58 CentroMAIL Spain -39
(plus 57 franchised)
TOTAL - 491 Non-executive directors
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
11
Peter Lewis, 
aged 63, was appointed to 
the Board in 1995 as a non-
executive director and in June
1998 he took up the role 
of non-executive Chairman. 
He was formerly Chairman of
Ashtead Group plc, the UK's
leading equipment and hire
company and he also holds
various other non-executive
directorships.
William Slee, 
aged 63, was appointed to 
the Board in September 2001.
He has held a number of senior
investment banking roles,
including 11 years at Schroders
plc, where he was group
managing director. Amongst
others, he is currently 
Vice-Chairman of Singulus
Technologies AG, a member 
of the Investment Committee 
of Algemeen Burgerlijk
Pensioenfonds and a 
non-executive director of
Charles Vogele AG.
Christopher Bell, 
aged 46, was appointed to 
the Board in January 2003.  
He has been chief executive 
of Ladbrokes Worldwide and a
director of its parent company,
Hilton plc, since June 2000. 
He joined Ladbrokes in 1991
and was appointed managing
director in 1995. Prior to that,
he held a number of senior
positions with Allied Domecq.
He is also a non-executive
director of Satellite Information
Services.
Jean-Paul Giraud, 
aged 58, was appointed to 
the Board in November 2003.
Until the summer of 2003, 
he was Chairman and chief
executive of FNAC, currently 
the largest retailer of its kind 
in Europe with over 100 stores
in six European territories, in
South America and the Far 
East. He is also a non-executive
director of Ingenico, a world
leader in secure financial
transaction solutions, and
Camaieu, a fashion retailer.
Martin Long ACIS,
aged 37, was appointed as
group chief executive on 
31 January 2004. He first
joined the main Board as
finance director in 1995 and
became the deputy chief
executive and chief financial
officer in January 1999. He
joined the Group in August
1993 as finance director of the
retail trading subsidiaries and
prior to that he was employed
in the accountancy profession. 
Lisa Morgan, 
aged 33, was appointed as
deputy chief executive on 
31 January 2004. She first
joined the main Board as
commercial director in January
2000. She joined the Group in
1997 and was appointed as a
subsidiary board director in
1998. She has over 10 years
experience in the video games
industry and immediately prior
to her joining the Group, was 
a senior buyer for the Dixons
Group plc. 
David Thomas ACA,
aged 41, was appointed to the
main Board in March 2004 as
group finance director. Before
joining GAME, he was group
finance director at Millenium
and Copthorne Hotels plc. Prior
to this, he held senior financial
roles with House of Fraser plc 
and Forte plc.
BOARD DIRECTORS
BOARD DIRECTORS
BOARD DIRECTORS
BOARD DIRECTORS
BOARD DIRECTORS
BOARD DIRECTORS
Executive directors Directors
Peter D Lewis non-executive Chairman
Martin Long ACIS group chief executive
Lisa J Morgan deputy chief executive
David F Thomas ACA group finance director
William R Slee senior non-executive director
Christopher Bell non-executive director
Jean-Paul Giraud non-executive director
Secretary
Jeremy P Gorman FCA
Registered office
Charter Court, Third Avenue, Southampton, SO15 0AP
Stockbrokers
Hoare Govett Limited, 250 Bishopsgate, 
London, EC2M 4AA
Bankers
National Westminster Bank PLC, Solent Corporate
Business Centre, Notebeme House, 84 High Street,
Southampton, SO14 2NT
Auditors
BDO Stoy Hayward LLP, 8 Baker Street, 
London, W1U 3LL
Solicitors
Speechly Bircham, 6 St Andrews Street, 
London, EC4A 3LX
Clifford Chance LLP, 10 Upper Bank Street, 
London, E14 5JJ
Registrars and transfer office
Capita Registrars, The Registry, 34 Beckenham Road,
Kent, BR3 4TU
Directors and Advisers
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
12
Financial Calendar 2004
Christmas trading statement January
Financial year end 31 January 
Preliminary announcement April
Final dividend record date 25 June 
payment date 16 July 
Annual General Meeting 7 July 
Interim report October
Interim dividend record date November 
payment date December  The directors have pleasure in presenting their report on the affairs of the Group, together with the audited financial statements,
for the year ended 31 January 2004.
Principal activities and business review
The Group operates retail outlets which specialise in the retailing of computer software, video games and related products. 
As at 31 January 2004 the Group operated in five European territories, with 359 stores throughout the United Kingdom and 
Ireland, 35 in Sweden, 39 in Spain and 58 stores in France, as well as operating e-commerce sites.
A more detailed review of the business for the year ended 31 January 2004 and future developments is set out in the
Chairman’s statement on pages 2 and 3 and the chief executive’s review on pages 4 to 8.
Results and dividends
The consolidated profit after taxation was £10.6 million (2003: £16.6 million), on turnover of £606.7 million 
(2003: £560.1 million). This profit represents basic earnings per share of 2.95p (2003: 4.40p). 
The directors recommend a final dividend of 1.50p (2003: 0.55p) per share. This, when taken with the interim dividend of
0.50p (2003: 0.45p) per share, gives a total dividend of 2.00p (2003: 1.00p) per share for the year ended 31 January 2004.
Directors
The directors of the Company during the year were as follows:
Peter Lewis
Martin Long
Lisa Morgan
William Slee 
Christopher Bell
Jean-Paul Giraud (appointed 13 November 2003)
Albert Scardino (retired 30 September 2003)
John Steinbrecher (retired 31 January 2004)
On 28 February 2003, the Company announced that John Steinbrecher would return to the USA and accordingly he retired 
from the Board on 31 January 2004. On that date, Martin Long was promoted to group chief executive and Lisa Morgan was
promoted to deputy chief executive. David Thomas joined as group finance director on 15 March 2004.
The directors who retire by rotation are Martin Long and William Slee who, being eligible, offer themselves for re-election. 
In addition, Jean-Paul Giraud and David Thomas, who were appointed to the Board since the last Annual General Meeting, 
retire in accordance with the Articles of Association and, being eligible, offer themselves for election.
Details of directors’ service contracts and beneficial interests in the share capital of the Company are given in the directors’
remuneration report on pages 22 to 27.
Biographies of the directors are set out on page 11. 
Corporate governance
The Company’s compliance with corporate governance is disclosed in the corporate governance statement on pages 18 to 21.
Report of the Directors
for the year ended 31 January 2004
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
13 Board committees
The audit committee currently comprises Peter Lewis as Chairman, together with William Slee, Christopher Bell and 
Jean-Paul Giraud. The committee reviews the interim and annual results and the annual report and financial statements 
prior to their submission to the Board as well as any matters raised by the external auditors.
The remuneration committee currently comprises Christopher Bell as Chairman, together with Peter Lewis, William Slee 
and Jean-Paul Giraud. The committee meets when required to consider all aspects of executive directors’ remuneration, 
performance and employment. 
The nominations committee currently comprises Peter Lewis as Chairman, together with William Slee, Christopher Bell and 
Jean-Paul Giraud. The committee meets when required to make recommendations to the Board on all new Board appointments.
Jean-Paul Giraud was appointed to the above committees on 13 November 2003. Albert Scardino resigned from the above
committees on 30 September 2003.
On 9 November 2001, the Board appointed an executive committee, comprising Peter Lewis as Chairman, together with 
John Steinbrecher and Martin Long. The committee is authorised by the Board to enter into commitments on behalf of the
Company which are in accordance with established Group policy or are in the Company’s ordinary course of business provided
that such matters or actions are within the limits laid down in the schedule of matters reserved for Board decision. Lisa Morgan
and David Thomas were appointed to the committee on 10 August 2003 and 15 March 2004 respectively. John Steinbrecher
retired from the committee on 31 January 2004.
Going concern
The directors have reviewed the financial position of the Group and of the Company and have concluded that there is a
reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for the
foreseeable future. For this reason the directors continue to adopt the going concern basis in preparing the financial statements.
Creditors payment policy
The Group’s policy for the year to 31 January 2005, for all suppliers, is to agree terms of payment when establishing the terms
of each business transaction and to abide by the agreed terms of payment. The Group had an average 26 days’ purchases
included in trade creditors at the year end. The Company had no trade creditors.
Employees
The Group’s policy is to ensure that equal opportunities exist, including training, career development and promotion, for 
persons disabled prior or subsequent to recruitment, having regard to their particular aptitudes and abilities. Procedures for 
the consultation and involvement of employees are in operation as appropriate to the circumstances of each individual
subsidiary undertaking.
Corporate social responsibility policy:
Introduction
GAME recognises that the elements within the Corporate Social Responsibility (CSR) are very important and link into the
reputation of the Group.
The Group is committed to reviewing our approach to employees, customers, our environment, charitable involvement,
communication to stakeholders and other social impacts.
Report of the Directors continued
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
14 Community investment
Our policy is focused around making a difference to both small and large organisations looking for support. During the past 
four years we have aided these organisations by donating educational and recreational products. The Group continues to 
support the Entertainment Software Charity (ESC), which is operated by the video games and computer software industry in 
the UK, and which supports a variety of youth causes.
The environment and recycling
We continue to comply with environmental regulations, and are committed to prevention and reduction of waste pollution
throughout the business. Within our Distribution Centre, we recycle all cardboard and plastic materials. We ensure that all our
stores comply with local authority disposal and recycling recommendations.
GAME also operates a recycling policy in its head office.
The Group is a member of a recycling programme called ‘recycle-more’, implemented by Valpack Ltd, a packaging waste
compliance scheme company. Around 3,000 companies are members of the scheme, which aims to fulfil our companies’
legal requirement to promote recycling to consumers.
Health and safety
GAME is committed to the creation and maintenance of a safe and healthy working environment for the benefit of its
employees, its customers and any other persons who are affected by its activities. A full health and safety policy is available
to staff via the intranet.
Employees
Our employees are vitally important to our business. We ensure that we regularly communicate and involve all our staff in the
direction of the business. GAME fully supports and aids staff welfare as well as personal and career development.
Equal opportunity policy
The Group is committed to ensuring equal opportunities for everyone. All of our employment decisions, policies, and
practices are made without regard to an individual’s sex, race, colour, religion, creed, sexual preference or national origin.
Disability policy
The Group is dedicated to the provision of an equal opportunity for all disabled persons able to discharge job duties and
functions required as part of employment with the Group. 
Sexual or racial harassment
The Group will not tolerate any act of sexual or racial harassment for whatever reason at any level in the organisation.
Health and safety
It is the Group’s policy to do all that is reasonably practicable to ensure a safe and healthy environment. The Group 
will provide instruction, training, supervision and information to enable all employees to perform their work safely.
Sharesave
The Group believes in its employees sharing in the success of the business and as a result the Group operates 
a sharesave scheme in which all our employees can participate.
Training and development
The Group is committed to enhancing the skills of its employees through the implementation of progressive and bespoke
development programmes which will ultimately support the achievement of our business plan.
In the current year we have begun putting into practice a variety of new training programmes, including National Vocational
Qualifications (NVQ’s) accredited courses and unique schemes for each level of store staff. We also launched our first
learning and development centre facility, a resource available to all staff.
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
15 Communication
GAME recognises the importance of communication to stakeholders. The full annual report and accounts, as well as the interim
report are mailed to all shareholders and on request, to other parties who have an interest in the Group’s performance. All
reports are available to be downloaded from the corporate website, www.gamegroup.plc.uk, which is updated regularly with
news and information about the Group.
There is regular dialogue with institutions and the analyst community, as well as general presentations after the announcement
of preliminary and interim results. All shareholders have the opportunity to put forward questions at the Company’s Annual
General Meeting.
The Group responds to individual correspondence from shareholders, customers and interested groups on a wide range of
issues within a reasonable time frame.
Share capital
As at 31 January 2004, the Company had an unexpired authority to repurchase further shares up to a maximum of 23,900,000
shares. During the year 30,200,000 shares have been purchased in the market for cancellation at a cost of £16,533,255 as part
of a programme which is considered to be in shareholders’ best interests. These transactions represented 8.71% of the issued
share capital at 31 January 2004.
Substantial shareholdings
As at 30 April 2004, the Board had been notified of, or were otherwise aware of, the following holdings of 3% or more of the
Company’s share capital:-
Number of %
ordinary shares holding
Amvescap plc and subsidiaries 85,219,350 24.46
* Invesco UK ICVC Series 51,475,925 14.77
Barclays plc 10,529,172 3.02
* Included in holding of Amvescap plc and subsidiaries.
Annual General Meeting
Resolutions will be proposed at the forthcoming Annual General Meeting, inter alia, to:- 
■ approve amendments to the Group’s existing 1998 executive share option scheme to enable the scheme to be operated 
in respect of French employees;
■ renew the directors’ general authority to allot the Company’s ordinary shares up to an aggregate nominal amount of
£5,806,801. This authority shall expire on whichever is the earlier of the conclusion of the Annual General Meeting of the
Company to be held in 2005 or the date falling fifteen months from the passing of this resolution. The directors have no
present intention of exercising this authority, which represents 33.33% of the present issued share capital; 
■ approve a limited disapplication of pre-emption rights on allotments for cash up to an aggregate nominal amount of
£870,000, representing 4.99% of the present issued share capital. Following the introduction of The Companies
(Acquisitions of Own Shares) (Treasury Shares) Regulations 2003, companies are now able to hold shares acquired by way
of market purchase in treasury (up to a maximum equal to 10% of the nominal value of the issued ordinary shares at that
time), rather than cancelling them. The Company may consider holding any of its own shares which it purchases pursuant
to the authority conferred by the relevant resolution as treasury shares. This would allow the Company to sell shares out of
treasury, providing the Company with the ability to replenish its distributable reserves. No dividends will be paid on any
shares held in treasury and no voting rights will attach to such shares. It will also be possible for the Company to transfer
shares out of treasury pursuant to an employees’ share scheme. If any shares are so used then the Company will count
them towards the limits in such employees’ share schemes on the number of new shares which may be issued under
them; and
Report of the Directors continued
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
16 ■ authorise the directors to make purchases of the Company’s ordinary shares in the market for cancellation, or to hold in
treasury for subsequent sale, up to an aggregate nominal amount of £1,740,000, representing 9.99% of the present issued
share capital. Purchases would only be made if the effect would be expected to improve earnings per share and the
directors consider that it would be in the best interests of the Company to do so. As at 7 May 2004, the Company does 
not hold any shares in treasury.
As at 7 May 2004, there are outstanding options to subscribe for 17,152,699 ordinary shares pursuant to employees’ share
schemes, which represent 4.92% of the issued share capital. If the authority to purchase ordinary shares was used in full, the
options would represent 5.47% of the issued share capital.
Statement of directors’ responsibilities
Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of 
the state of affairs of the Company and of the Group and of the profit or loss of the Group for the 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 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 Group and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
Financial statements are published on the Group’s website in accordance with legislation in the United Kingdom governing the
preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance
and integrity of the Group’s website is the responsibility of the directors. The directors’ responsibility also extends to the 
ongoing integrity of the financial statements contained therein.
Auditors
On 31 December 2003, BDO Stoy Hayward, the Company’s auditors, transferred its business to BDO Stoy Hayward LLP, a
limited liability partnership incorporated under the Limited Liability Partnerships Act 2000. Accordingly, BDO Stoy Hayward
resigned as auditors on that date and the directors appointed BDO Stoy Hayward LLP as its successor. A resolution to 
reappoint BDO Stoy Hayward LLP as auditors will be proposed at the forthcoming Annual General Meeting.
By order of the Board
Jeremy Gorman FCA
Company Secretary
Charter Court
Third Avenue
Southampton SO15 0AP
7 May 2004
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
17 Corporate governance
There is a commitment to high standards of corporate governance throughout the Group. The Board intend that the Company
and the Group will comply with the revised combined code on corporate governance which applies to reporting years beginning
on or after 1 November 2003.
The Board confirms that the Company and the Group have complied for the year ended 31 January 2004 with the provisions
set out in section 1 of the Combined Code 1998.
The Board is accountable to the Company’s shareholders for good governance and the statements set out below describe how
the principles identified in the former combined code referred to above are applied by the Group.
Directors
The Board consists of a non-executive Chairman, Peter Lewis, three other non-executive directors and three executive directors,
of which Martin Long is group chief executive, Lisa Morgan is deputy chief executive and David Thomas is group finance director.
All four of the non-executive directors are considered by the Board to be independent of management and free of any
relationship which could materially interfere with the exercise of their independent judgement. 
Biographies of Board members appear on page 11 of this report. These indicate the high levels and range of business
experience, which are essential to manage effectively a business of the size and complexity of the Group. 
The full Board meets at least six times each year, and more frequently where business needs require. The Board has a schedule
of matters reserved for its decision, including, inter alia statutory matters; approval of financial statements and dividends;
appointments and terminations of directors, officers and auditors; appointments of committees and setting of terms of reference;
review and approval of group performance against budgets; approving risk management strategy and material contracts; and
determining of authority levels within which management is required to operate.
There is an agreed procedure for directors to take independent professional advice at the Company’s expense. This is in addition
to the access which every director has to the company secretary. The company secretary is charged by the Board with ensuring
that Board procedures are followed. 
When new members are appointed to the Board, they are provided with advice from the company secretary in respect of their
role and duties as a public company director. 
William Slee is the senior non-executive director. Concerns relating to the executive management of the Company or the
performance of the other non-executive directors may be raised with the senior non-executive director.
To enable the Board to function effectively and directors to discharge their responsibilities, full and timely access is given to all
relevant information. In the case of Board meetings, this consists of a comprehensive set of papers, including regular business
progress reports and discussion documents regarding specific matters. 
Appointments to the Board of both executive and non-executive directors are considered by the nominations committee. 
The recommendations of the nominations committee are ultimately made to the full Board, which considers them before any
appointment is made. The remuneration committee considers any remuneration package before it is offered to a potential
appointee. The members of the audit, remuneration and nominations committees are set out on pages 19 and 20. 
Any director appointed during the year is required, under the provisions of the Company’s Articles of Association, to retire and
seek election by shareholders at the next Annual General Meeting. The Articles also require that one third of the directors retire
by rotation each year and seek re-election at the Annual General Meeting. The directors required to retire are those in office
longest since their previous re-election and this usually means that each director retires at least once every three years, 
although there is no absolute requirement to this effect.
Corporate Governance Statement
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
18 Full details of directors’ remuneration and a statement of the Company’s remuneration policy are set out in the directors’
remuneration report appearing on pages 22 to 27. The members of the remuneration committee and the principal terms of
reference of the committee appear on page 22.
Meeting with non-executive directors
The Chairman holds meetings as required with the non-executive directors without the executive directors being present.
Board performance evaluation
In accordance with the requirements of the Combined Code 2003, the Board has undertaken a formal evaluation of its own
performance and that of its committees and individual directors. 
Individual attendance by directors at meetings of the board and of other committees
Director Board Audit Remuneration Nominations
No. of No. No. of No. No. of No. No. of No. 
meetings attended meetings attended meetings attended meetings attended
Peter Lewis 77224422
Martin Long 7 7 ––––––
Lisa Morgan 7 6 ––––––
David Thomas* ––––––––
William Slee 77224422
Christopher Bell 76224321
Jean-Paul Giraud 1 1 – – 1111
John Steinbrecher 7 4 ––––––
Albert Scardino 522121––
* Appointed 15 March 2004
Audit committee
The audit committee currently comprises Peter Lewis as Chairman, together with William Slee and Christopher Bell, who all
served throughout the year, and Jean-Paul Giraud, who was appointed on 13 November 2003. During the period 1 February 
to 30 September 2003, Albert Scardino was also a member.
Following publication of the revised combined code on corporate governance, the terms of reference of the audit committee
have been expanded. These are available on request and are also published on the Company’s website.
The nominations committee has noted that the combined code states that the Chairman should not be a member of the audit
committee, on the basis that a company chairman is not regarded as independent. However, the committee considers that the
Chairman meets the code’s requirement that one committee member should have recent and relevant financial experience, 
and believes that the Chairman is an appropriate person to be a member of this committee and to act as its chairman.
The committee’s main objectives are, inter alia, to monitor the integrity of the Company’s financial statements and any other
formal announcements relating to the Company’s financial performance; review significant financial reporting judgements
contained in them, before submission to, and approval by, the Board, and before clearance by the external auditors; review the
Company’s internal financial controls and risk management systems; monitor and review the effectiveness of the Company’s
internal audit function; and review the arrangements by which employees of the Company may, in confidence, raise concerns
about possible improprieties in matters of financial reporting or other matters.
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
19 The committee also reviews any matters raised by the auditors. The chief executive and the finance director are invited to 
attend part of each meeting of this committee, as are the auditors. The auditors have unrestricted access to the members of 
the audit committee, and the committee ensures that meetings are used as an open avenue of communication between the
external auditors and the Board.
Following a recommendation from the audit committee, the Board has adopted a policy in relation to the provision of non-audit
services by the auditors, with the objective of ensuring that the provision of such services does not impair the external auditor’s
objectivity. This includes, inter alia, assessing all relationships with the audit firm, including their partners and staff; assessing the
nature and level of fees for non-audit services in relation to the audit fee; obtaining confirmation of independence from the
auditors; and ensuring the appropriateness of the firm as providers for non-audit services.
The split between audit and non-audit fees for the year under review is disclosed on page 36. The non-audit fees were principally
paid in respect of tax services and are considered by the audit committee not to affect the auditors’ independence or objectivity.
Remuneration committee
The remuneration committee comprises Christopher Bell as Chairman (appointed 1 October 2003), together with Peter Lewis
and William Slee, who all served throughout the year, and Jean-Paul Giraud, who was appointed on 13 November 2003. During 
the period 1 February to 30 September 2003, Albert Scardino was Chairman of the committee. The work of the remuneration
committee is covered further in the directors’ remuneration report on pages 22 to 27.
The nominations committee has noted that the combined code requires that the remuneration committee should be comprised
of independent directors and concluded that, notwithstanding that a company chairman is not regarded as independent, the
Chairman is an appropriate person to be a member of the committee.
Copies of executive directors’ service contracts and the terms and conditions of appointment of the non-executive directors are
available for inspection at the Company’s office during normal business hours.
The terms of reference of the remuneration committee are available on request and are also published on the Company’s
website.
Nominations committee
The nominations committee consists of Peter Lewis as Chairman, together with William Slee and Christopher Bell, who all 
served throughout the year, and Jean-Paul Giraud, who was appointed on 13 November 2003. During the period 1 February 
to 30 September 2003, Albert Scardino was also a member.
It meets as required and makes recommendations to the Board on all Board and committee appointments, including the
selection of non-executive directors. During the year, the nominations committee recommended two appointments to the Board,
following interviews of candidates sourced by executive search agencies. The terms of reference of the nominations committee
are available on request and are also published on the Company’s website.
Corporate Governance Statement continued
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
20 Audit and internal control
The respective responsibilities of the directors and the auditors in connection with the annual report and accounts are explained
on pages 17 and 28 and the statement of the directors on going concern appears on page 14.
Following the publication of guidance for directors, Internal Control: Guidance for Directors on the Combined Code, the Board
confirms that there is an ongoing process for identifying, evaluating and managing any significant risks faced by the Group. 
The process has been in place throughout the financial year and up to the date of approval of the annual report and accounts
and is regularly reviewed by the Board.
The directors are responsible for the Group’s system of internal control and for reviewing its effectiveness. However, such a
system can only provide reasonable, but not absolute, assurance against material misstatement or loss. The system is designed
to manage rather than eliminate the risk of failure to achieve business objectives.
The key procedures that the directors have established to ensure that internal controls are effective are commensurate with a
group of this size, a key control procedure being the day to day supervision of the business by the directors. Other internal
control procedures and reviews for effectiveness by the Board include the:
■ preparation, maintenance and review of a Group risk register;
■ review of financial, operational and compliance reports from management; and
■ review of any significant issues arising from the external audits.
The audit committee, on behalf of the Board, has considered the need for an internal audit function in light of the nature of its
business and the complexity of transactions. As a result the audit committee has concluded that there is no need for an internal
audit function but it will continue to keep this area under review.
The audit committee keeps the scope and cost effectiveness of the external audit under review. The independence and
objectivity of the external auditors is also considered on a regular basis, with particular regard to the level of non-audit fees.
The split between audit and non-audit fees for the year under review appears on page 36. The non-audit fees were principally
paid in respect of tax services and are considered by the committee not to affect the auditors’ independence or objectivity. 
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
21 Statement of compliance
As well as complying with the provisions of the combined code as disclosed in the corporate governance statement, the
Company has applied the principles relating to directors’ remuneration as described below.
Remuneration committee
The remuneration committee comprises Christopher Bell as chairman (appointed 1 October 2003), together with Peter Lewis
and William Slee, who all served throughout the year, and Jean-Paul Giraud, who was appointed on 13 November 2003. During
the period 1 February to 30 September 2003, Albert Scardino was chairman of the committee. The committee is responsible for
all aspects of remuneration for the executive directors and for determining the policy for the remuneration of the directors of the
principal operating subsidiaries.
Remuneration policy
The Company’s policy is to remunerate the Group’s executive directors and management fairly in such a manner as to facilitate
the recruitment, retention and motivation of suitably qualified personnel. The measurement of their performance and the
determination of the annual remuneration package of the executive directors are undertaken by the remuneration committee
who utilise the services of external professional advisers to assist them in this area. The main elements of the remuneration
package are basic salary, benefits, performance related bonus, pension contributions and share option incentives.
During the year ended 31 January 2004, the remuneration committee sought external advice from Deloitte & Touche, acting 
as independent advisers, as to the main elements of the remuneration package which they considered appropriate for the
executive directors, based on a comparative group of companies. The remuneration committee accepted the recommendations
of Deloitte & Touche which were adopted.
In March 2004, the committee appointed New Bridge Street Consultants LLP as advisers, in place of Deloitte & Touche, to 
advise specifically on long-term incentives to replace the existing executive share option scheme, and on a revised executive
bonus scheme. This matter is referred to later in this report. Neither of these organisations provided any additional services to
the Company during the year.
Base salaries
The remuneration committee aims to pay competitive salaries having regard to external benchmark data, internal relativities,
performance and affordability. Martin Long and Lisa Morgan have waived their entitlement to any salary review in 2004.
The remuneration of the non-executive directors is determined by the Board. No director plays a part in any discussion about 
his or her own remuneration. 
Each element of remuneration payable to executive directors is discussed in more detail below.
Basic salary and benefits
Basic salaries for all executive directors are reviewed annually by the committee. It is the intention of the remuneration committee
to introduce new service agreements for all executive directors in 2004. These will not contain any automatic entitlement to
salary increases in respect of RPI, as currently provided for in the current contracts for Martin Long and Lisa Morgan. 
In addition to basic salary, each executive director is entitled to the following main benefits:
■ 25 days holiday per annum;
■ a full expensed company car or cash equivalent;
■ critical illness cover and permanent health insurance; and
■ health cover for themselves, their spouse and minor children.
Directors’ Remuneration Report 
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
22 Performance related bonus
The bonus scheme for the year ended 31 January 2004 entitled the executive directors to a bonus with payment linked to
outperformance of the budget in terms of profit before tax. An additional payment could be made at the discretion of the
committee in the event that the Group achieved performance in excess of 125% of budgeted profit before tax. This was to
ensure that there was a significant element of “at risk” pay, only payable if good results were achieved. Bonus payments for the
year ended 31 January 2003 had been capped at 40%. Payments due in respect of the year ended 31 January 2004 amount
to £190,088 for Martin Long, £147,531 for Lisa Morgan and £138,612 for John Steinbrecher, respectively.
The committee has modified the bonus scheme, applicable to the 2004/5 financial year and beyond, as follows:
■ the potential for executive directors will be restricted to 125% of base salary;
■ 90% of the bonus opportunity will continue to be determined by reference to stretching profit targets, with the other 10%
being determined by reference to clear objectives set for each executive director; and
■ to further align the interests of executive directors with those of shareholders, only the first half of the maximum bonus
potential will be paid in cash (i.e. a maximum of 62.5%) with any excess to be deferred into contingent shares for 3 years.
During this period, the executive will not be entitled to receive dividends on those shares and they will be subject to
forfeiture if the executive voluntarily resigns or is dismissed for cause.
The bonus arrangements for subsidiary company directors will not exceed that of the executive directors and may be subject 
to similar deferral arrangements.
Directors’ pension policy
Martin Long, Lisa Morgan and David Thomas are entitled to receive company contributions to their defined contribution 
pension schemes at the rate of up to 15% of basic salary. Lisa Morgan’s entitlement was increased from 10% to 15% with
effect 1 February 2003. 
Long-term incentives
The committee believes that share ownership by executive directors strengthens the link between their personal interests 
and those of shareholders. Historically, it has been Group policy that awards are made to executive directors and senior
management in accordance with the rules of The GAME Group 1998 Executive Share Option Scheme (“the 1998 Scheme”),
which permitted the award of options up to a maximum of 200% of salary in any calendar year.
Following a review of the remuneration structures for the senior executives of the Group, the remuneration committee
concluded that the existing 1998 Scheme was no longer an appropriate incentive vehicle, particularly in view of the impending
changes to the accounting regime. Accordingly, the committee sought external advice from New Bridge Street Consultants LLP,
acting as independent advisers, and commissioned a comprehensive review of these incentive arrangements, as a result of which
the committee has decided to introduce a performance share plan to replace the 1998 Scheme. Details of the proposals are set
out in a circular to shareholders which accompanies this annual report and accounts. Following the introduction of the performance
share plan, it is intended that no further grants of options to executive directors will be made under the 1998 Scheme.
Accordingly, resolutions will be proposed at an Extraordinary General Meeting of the Company, to be held immediately after the
Annual General Meeting on 7 July 2004, to seek shareholders’ approval for a new performance share plan and to establish an
employee benefit trust. 
Grants of options were made to Martin Long and Lisa Morgan in the year ended 31 January 2004, and David Thomas in 
April 2004 following him joining the Group, over shares worth approximately 2 times salary subject to a requirement that:
■ EPS must increase by at least RPI + 3% p.a. on average over a fixed period of, initially, 3 years (with 2 retesting
opportunities) for the first 1 times salary worth of shares to become exercisable; and
■ EPS must increase by at least RPI + 5% p.a. on average over the same period(s) for any excess to become exercisable.
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
23 These performance conditions were considered to be appropriate as, while imposing a demanding requirement on the
participants, they would, if achieved, ensure that shareholders also receive attractive returns over the exercise period. 
The remuneration committee has also imposed stringent shareholding requirements as a condition attaching to options granted
to executive directors on or after 15 November 2001.
The requirement is for executive directors to hold shares worth between 33.3% and 50% of salary by the third anniversary of
grant. If this condition is not satisfied, the options will lapse. On exercise, executive directors must retain shares worth at least
50% of the post-tax option gain to the extent that their holdings are worth less than 100% of salary at that time.
Performance graph
The following graph compares the total return on the Company’s shares with that of general retailers in the FTSE All-share index
over the last five years. This index has been chosen as it is considered the most likely benchmark by which the majority of
shareholders would want to assess their investment in a company the size of The GAME Group plc.
The following disclosures (up to and including page 26) on directors’ remuneration have been audited, as required by Part 3 of
Schedule 7A of the Companies Act 1985.
Directors’ interests in shares
The beneficial interests of the directors at 31 January 2004 in the share capital of the Company and options to purchase such
shares were as follows:
31 January 2004 31 January 2003
Ordinary Share Ordinary Share
shares options shares options
Peter Lewis 916,666 – 916,666 –
Martin Long 219,584 1,685,846 219,584 687,766
Lisa Morgan 50,000 1,855,863 50,000 1,065,783
William Slee –– ––
Christopher Bell –– ––
Jean-Paul Giraud –– ––
No share options were exercised by directors during the year. In the previous year pre-tax gains of £670,081 were made on the
exercise of directors’ share options, of which £164,033 related to a previous director.
David Thomas held no shares in the company at the date of his appointment on 15 March 2004.
On 27 April 2004, Martin Long, Lisa Morgan and David Thomas purchased 15,416, 10,000 and 10,000 ordinary shares,
respectively, in the Company.
Directors’ Remuneration Report continued
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
24
REPRO TO DO
-75
-50
-25
0
25
50
75
100
Percentage Growth Total Return, Tax Default, In GBP
Percentage Growth
5 Years From 29/01/1999 To 30/01/2004
07/1999 02/2000 07/2000 01/2001 07/2001 02/2002 07/2002 01/2003 07/2003
-18
9
GAME Group (EQ) FTSE UK General Retailers – TR (IN) Directors’ share options outstanding at 31 January 2004 were as follows:
At Awarded Exercised Lapsed At Exercise Earliest date Expiry
1 Feb 2003 31 Jan 2004 price of exercise date
John Steinbrecher 1,488,886 – – – 1,488,886 45p 1 Feb 2003 31 Jan 2010
178,700 – – – 178,700 132p 15 Nov 2004 14 Nov 2011
136,200 – – – 136,200 138p 1 May 2005 30 Apr 2012
Martin Long 152,404 – – – 152,404 78.25p 1 Oct 2001 30 Sep 2008
142,800 – – – 142,800 45p 1 Feb 2003 31 Jan 2010
107,000 – – – 107,000 77.5p 25 April 2004 24 Apr 2011
138,500 – – – 138,500 132p 15 Nov 2004 14 Nov 2011
136,200 – – – 136,200 138p 1 May 2005 30 Apr 2012
10,862 – – 10,862 – 87p 1 Dec 2005 31 May 2006
– 508,900 – – 508,900 56p 7 May 2006 6 May 2013
– 478,900 – – 478,900 59.5p 14 May 2006 13 May 2013
– 21,142 – – 21,142 43.75p 1 July 2006 31 Dec 2006
Lisa Morgan 13,400 – – – 13,400 29p 12 May 2000 12 May 2007
50,000 – – – 50,000 39.25p 16 Oct 2000 16 Oct 2004
35,971 – – – 35,971 69.50p 6 Oct 2001 5 Oct 2008
65,000 – – – 65,000 41.75p 3 Dec 2002 2 Dec 2009
457,250 – – – 457,250 45p 1 Dec 2003 31 Jan 2010
232,200 – – – 232,200 77.5p 25 April 2004 24 Apr 2011
93,900 – – – 93,900 132p 15 Nov 2004 14 Nov 2011
107,200 – – – 107,200 138p 1 May 2005 30 Apr 2012
10,862 – – 10,862 – 87p 1 Dec 2005 31 May 2006
– 401,700 – – 401,700 56p 7 May 2006 6 May 2013
– 378,100 – – 378,100 59.5p 14 May 2006 13 May 2013
– 21,142 – – 21,142 43.75p 1 July 2006 31 Dec 2006
During the year Martin Long and Lisa Morgan cancelled options over 10,862 ordinary shares exercisable at 87p per share held
under the Group all employee sharesave scheme, and were granted options over 21,142 ordinary shares exercisable at 43.75p
per share under the same scheme. Save as disclosed, no directors’ share options lapsed during the year. The market price of
shares at 31 January 2004 was 62.0p and the range during the year was 32.5p to 75.5p.
The performance criteria in relation to the above options are set out on page 23. On 29 April 2004, David Thomas was granted
options over 687,500 ordinary shares exercisable at 64p per share between 29 April 2007 and 28 April 2014.
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
25 Directors’ emoluments
The emoluments of the directors were as follows:
Basic Performance Benefits Total Pension
salary related bonus in kind Fees emoluments contributions 
2004 2003 2004 2003
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Executive
John Steinbrecher 333 139 17 – 489 430 – –
Martin Long 308 190 24 – 522 253 46 47
Lisa Morgan 241 147 19 – 407 195 36 18
Non-executive
Peter Lewis –– –100 100 89 – –
William Slee –– – 35 35 29 – –
Christopher Bell * –– – 34 34 – – –
Jean-Paul Giraud * –– – 7 7 – – –
Albert Scardino * –– – 21 21 32 – –
Sir Richard Greenbury *–– – – – 31 – –
Total 882 476 60 197 1,615 1,059 82 65
Neither John Steinbrecher, Martin Long nor Lisa Morgan earned performance related bonuses in the year ended 31 January 2003. 
All pension contributions are to defined contribution pension schemes.
* Jean-Paul Giraud was appointed to the Board on 13 November 2003 and Albert Scardino retired from the Board on 
30 September 2003. Christopher Bell was appointed to the Board on 27 January 2003 and Sir Richard Greenbury retired 
from the Board on 25 January 2003. 
Benefits incorporate all assessable tax benefits arising from employment by the Company, which relate mainly to the provision 
of a company car.
Directors’ Remuneration Report continued
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
26 Service contracts
Martin Long and Lisa Morgan are employed under service agreements dated 28 October 1999 and 24 September 2001,
respectively, which are subject to twelve months’ notice of termination on either side. Both executives are entitled to liquidated
damages upon the termination of their contracts, equal to their annual base salary and benefits at the termination date and their
annual bonus paid in the year ending prior to the termination. Such amounts are also payable if an executive resigns following 
a change of control which results in a substantial and detrimental change to the terms and conditions of employment.
David Thomas is currently employed under a letter of appointment dated 21 January 2004, which is subject to twelve months’
notice of termination.
New service contracts are currently being introduced for the three executive directors which will contain notice periods of not
more than twelve months. 
Arrangements with John Steinbrecher
During the year ended 31 January 2004, John Steinbrecher was employed under a service agreement which was subject to
thirty-six months’ notice of termination on either side. In the event of termination of the service agreement by the Company
without just cause, the maximum sum payable to John Steinbrecher by way of compensation was limited to a sum equivalent to
twice the value of his annual remuneration under the service agreement. This contract expired on John Steinbrecher’s retirement
on 31 January 2004, at which point he left the Group without any compensation being due.
John Steinbrecher will be permitted to retain and exercise his outstanding share options for the period ending 31 January 2005
and, if not exercised by that date, for a further twelve months at the Board’s discretion. He will continue to be subject to the
non-compete and non-disclosure provisions of his service agreement which expired on 31 January 2004. 
Current terms of appointment of non-executive directors
The current terms of appointment of the non-executive directors are as follows:
Annual fee Date of Term of Expires Other income
£ p.a. appointment appointment £ p.a.
Peter Lewis 95,000 1 Dec 2003 3 years 1 Dec 2006 10,000
1
William Slee 31,500 25 Sep 2001 3 years 25 Sept 2004 5,000
2
Christopher Bell 31,500 27 Jan 2003 3 years 27 Jan 2006 5,000
3
Jean-Paul Giraud 31,500 13 Nov 2003 3 years 13 Nov 2006 –
1
includes £5,000 in respect of Chairmanship of a Board committee and £5,000 contribution to office expenses
2
includes £5,000 as senior non-executive director
3
includes £5,000 in respect of Chairmanship of a Board committee
There are no provisions for compensation payable upon early termination of any of the above appointments.
Annual General Meeting
In accordance with the requirements of s.241A of the Companies Act 1985, a resolution will be proposed at the forthcoming
Annual General Meeting to approve this directors’ remuneration report.
On behalf of the Board
Christopher Bell
Chairman, remuneration committee
7 May 2004
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
27 We have audited the financial statements of THE GAME GROUP PLC for the year ended 31 January 2004 on pages 29 to 48
including the information in the directors’ remuneration report that is described as having been audited. The financial statements
have been prepared under the accounting policies set out on pages 29 and 30.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the annual report, the directors’ remuneration report and the financial statements 
in accordance with applicable law and United Kingdom accounting standards are set out in the statement of directors’
responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements, 
United Kingdom auditing standards and the listing rules of the Financial Services Authority.
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial
statements and the part of the directors’ remuneration report to be audited have been properly prepared in accordance with the
Companies Act 1985. We also report to you if, in our opinion, the directors’ report is not consistent with the financial statements,
if the Group 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 or the listing rules regarding directors’ remuneration and transactions with the
Company and other members of the Group is not disclosed.
We review whether the corporate governance statement on pages 18 to 21 reflects the Group’s compliance with the seven
provisions of the combined code issued in 1998 specified for our review by the Listing Rules of the Financial Services Authority,
and we report if it does not. We are not required to consider whether the Board’s statements on internal control cover all risks
and controls, or form an opinion on the effectiveness of the Group’s corporate governance procedures or its risk and control
procedures.
We read other information contained in the annual report and accounts and consider whether it is consistent with the audited
financial statements. This other information comprises only the highlights, commercial review, Chairman’s statement, the chief
executive’s review, the report of the directors, the corporate governance statement and the unaudited part of the directors’
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.
Our report has been prepared pursuant to the requirements of the Companies Act 1985 and for no other purpose. No person 
is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the
purpose of the Companies Act 1985 or has been expressly authorised to do so by our prior written consent. Save as above, 
we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim
any and all such liability.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom auditing standards issued by the Auditing Practices Board. 
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements
and the part of the directors’ remuneration report to be audited. It also includes an assessment of the significant estimates and
judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are
appropriate to the Group’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in
order to provide us with sufficient evidence to give reasonable assurance that the financial statements and the part of the
directors’ remuneration report to be audited 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 and the part of the directors’ remuneration report to be audited.
Opinion
In our opinion the financial statements, give a true and fair view of the state of affairs of the Company and the Group at 
31 January 2004 and of the profit of the Group for the year then ended and the financial statements and the part of the
directors’ remuneration report to be audited have been properly prepared in accordance with the Companies Act 1985.
BDO STOY HAYWARD LLP
Chartered Accountants
and Registered Auditors
London
7 May 2004 
Independent Auditors’ Report
to the shareholders of THE GAME GROUP PLC
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
28 Accounting policies
The financial statements have been prepared under the historical cost convention in accordance with applicable accounting
standards.
The principal accounting policies are:-
Basis of consolidation
The consolidated financial statements incorporate the results of THE GAME GROUP PLC and all of its subsidiary undertakings
made up to 31 January 2004. The Group has used the acquisition method of accounting to consolidate the results of subsidiary
undertakings. The results of subsidiary undertakings are included from the date of acquisition.
Accounting periods
The accounting reference date of the Group is 31 January. The comparative year’s results are for the 53 week period ended 
1 February 2003. The current year’s results are for the 52 week period ended 31 January 2004.
Goodwill
Goodwill arising on the acquisition of a subsidiary undertaking is the difference between the fair value of the consideration paid
and the fair value of the assets and liabilities acquired. 
Goodwill arising on acquisitions of subsidiary undertakings is capitalised as an intangible fixed asset and either amortised over
the useful life, when this can be identified, or amortised over a period of 20 years or less. Impairment tests on the carrying value
of goodwill are undertaken at the end of the first full financial year following acquisition, or in other periods if events or changes
in circumstances indicate that the carrying value may not be recoverable.
Prior to 1 February 1998, goodwill was written off to reserves in the year in which it arose. On the disposal of an acquired
business, the profit or loss on the disposal is calculated after including the attributable amount of goodwill previously written
off to reserves.
Turnover
Turnover comprises the value of sales (excluding VAT and similar taxes, trade discounts and intra-group transactions) of goods
and services provided in the normal course of business.
Fixed assets
Tangible fixed assets are shown at cost less depreciation. Depreciation is provided to write off the cost less estimated residual
values of all fixed assets, on a straight-line basis, over their expected useful lives at the following annual rates:
Short leasehold property – over period of lease
Improvements to leasehold property – 10% 
Freehold property – 1%
Fixtures, fittings and equipment – 20% to 33%
Motor vehicles – 25% 
Investments
Investments are stated at cost less provision for any permanent diminution in value.
Statement of Accounting Policies
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
29 Stocks
Stocks are stated at the lower of cost and net realisable value. Cost is calculated to include, where applicable, duties, handling,
transport and other directly attributable costs.
Net realisable value is based on estimated normal selling prices less further costs expected to be incurred in selling and
distribution.
Financial instruments
In relation to the disclosures in note 19, short term debtors and creditors are not treated as financial assets or financial liabilities,
except for the currency disclosure. The Group does not hold or issue derivative financial instruments for trading purposes.
Net interest arising on interest rate agreements is taken to the profit and loss account.
Deferred taxation
Provision is made on all timing differences between the treatment of certain items for taxation and accounting purposes except
that the recognition of deferred tax assets is limited to the extent that the Group anticipates making sufficient taxable profits in
the future to absorb the reversal of the underlying timing differences. Discounting is not used in the calculation of deferred tax.
Leased assets 
Where assets are financed by leasing agreements that give rights approximating to ownership (finance leases), the assets are
treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments
payable over the term of the lease. The corresponding leasing commitments are shown as amounts payable to the lessor.
Depreciation on the relevant assets is charged to the profit and loss account.
Lease payments are analysed between capital and interest components so that the interest element of the payment is charged
to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital
repayments outstanding. The capital part reduces the amounts payable to the lessor. All other leases are treated as operating
leases. Their annual rentals are charged to the profit and loss account on a straight-line basis over the term of the lease.
Premiums paid or received on the acquisition of short leasehold properties are transferred to the profit and loss account on 
a straight-line basis over the period to the first rent review or over the length of the lease, as appropriate, commencing on 
store opening.
Pension contributions
The Group makes payments to a number of defined contribution pension schemes. The assets of these schemes do not form
part of the assets of the Group. The pension cost charge represents contributions payable during the year.
Foreign currencies
Foreign currency transactions of individual companies are translated at the rates ruling when they occurred. Foreign currency
monetary assets and liabilities are translated at the rates ruling at the balance sheet dates. Any differences are taken to the profit
and loss account.
The results of overseas operations are translated at the average rates of exchange during the year and their balance sheets
translated into sterling at the rates of exchange ruling on the balance sheet date. Exchange differences which arise from
translation of the opening net assets of foreign subsidiary undertakings and from translating the profit and loss account at an
average rate are taken to reserves.
Interest
Interest payable is charged to the profit and loss account as incurred, except where the borrowing finances tangible fixed assets
in the course of construction. Such interest is capitalised until the asset has reached practical completion and is then written off
by way of depreciation of the relevant asset.
Statement of Accounting Policies continued
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
30 Consolidated Profit and Loss Account
for the year ended 31 January 2004
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
31
2004 2003
Note £’000 £’000
Turnover 2 606,660 560,065
Cost of sales 432,004 402,910
Gross profit 174,656 157,155
Other operating expenses 3 156,848 130,786
Operating profit before goodwill
amortisation and exceptional costs 34,187 32,395
Goodwill amortisation (5,962) (5,923)
Exceptional costs 4 (10,417) (103)
Operating profit 5 17,808 26,369
Interest receivable and similar income 6 764 1,052
Interest payable and similar charges 7 (264) (256)
Profit on ordinary activities before taxation 18,308 27,165
Taxation 9 7,671 10,608
Profit on ordinary activities after taxation 10,637 16,557
Dividends 10 6,991 3,758
Retained profit for the financial year 26 3,646 12,799
Earnings per share     – basic 11 2.95p 4.40p
– diluted 11 2.94p 4.36p
Earnings per share before amortisation of goodwill
and exceptional costs – basic 11 6.63p 6.00p
– diluted 11 6.61p 5.93p
Number of own stores trading (including concessions)
At beginning of year 449 389
At end of year 491 449
There are no material recognised gains or losses other than the profit attributable to shareholders’ disclosed in the above profit
and loss account.
All amounts relate to continuing activities.
The notes on pages 35 to 48 form part of these financial statements. Consolidated Balance Sheet
at 31 January 2004
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
32
2004 2003
Note £’000 £’000
Fixed assets
Intangible assets 12 86,659 92,160
Tangible assets 13 63,147 41,742
149,806 133,902
Current assets
Stocks 15 58,279 38,205
Debtors 16 19,475 17,523
Cash at bank and in hand 28,359 37,972
106,113 93,700
Creditors: amounts falling due
within one year 17 97,371 71,923
Net current assets 8,742 21,777
Total assets less current liabilities 158,548 155,679
Creditors: amounts falling due
after more than one year 18 15,163 1,361
Accruals and deferred income
Leasehold property incentives 21 2,005 1,733
Net assets 141,380 152,585
Capital and reserves
Called up share capital 22 17 ,336 18,772
Share premium account 23 39,198 38,513
Capital redemption reserve 25 1,560 50
Other reserves 25 76,907 76,907
Profit and loss account 26 6,379 18,343
Equity shareholders’ funds 24 141,380 152,585
The financial statements were approved by the Board on 7 May 2004
Martin Long
Director
The notes on pages 35 to 48 form part of these financial statements Company Balance Sheet
at 31 January 2004
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
33
2004 2003
Note £’000 £’000
Fixed assets
Investments 14 59,742 59,604
Current assets
Debtors 16 36,495 22,602
Cash at bank and in hand 79 83
36,574 22,685
Creditors: amounts falling due
within one year 17 7,627 3,356
Net current assets 28,947 19,329
Total assets less current liabilities 88,689 78,933
Creditors: amounts falling due
after more than one year 18 14,448 –
Net assets 74,241 78,933
Capital and reserves
Called up share capital 22 17 ,336 18,772
Share premium account 23 39,198 38,513
Capital redemption reserve 25 1,560 50
Other reserves 25 76 76
Profit and loss account 26 16,071 21,522
Equity shareholders’ funds 24 74,241 78,933
The financial statements were approved by the Board on 7 May 2004
Martin Long
Director
The notes on pages 35 to 48 form part of these financial statements. Consolidated Cash Flow Statement
for the year ended 31 January 2004
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
34
2004 2003
Note £’000 £’000
Net cash inflow from operating activities 28 36,121 37,366
Returns on investments and
servicing of finance 29 169 796
Taxation (9,918) (10,648)
Capital expenditure 29 (30,364) (22,263)
Acquisitions 29 (563) (569)
Equity dividends paid (3,855) (3,175)
Net cash (outflow)/inflow before financing (8,410) 1,507
Financing 29 (1,060) (7)
(Decrease)/increase in cash in the year (9,470) 1,500
Reconciliation of net cash flow to movement in net funds
2004 2003
Note £’000 £’000
(Decrease)/increase in cash in the year (9,470) 1,500
Cash (inflow)/outflow from (increase)/decrease in net debt
and lease financing (14,714) 1,239
Change in net funds resulting from cash flows (24,184) 2,739
New finance leases (331) (339)
Deferred consideration on acquisitions (228) 3,500
Translation differences (68) (75)
Movement in net funds in year (24,811) 5,825
Net funds at beginning of year 34,783 28,958
Net funds at end of year 30 9,972 34,783
The notes on pages 35 to 48 form part of these financial statements. 1 Parent Company profit and loss account
The Company has taken advantage of the exemption in the Companies Act 1985 not to present its own profit and 
loss account. The Group profit for the year includes a profit after tax and before dividends payable of £18,073,000 
(2003: £10,083,000) which is dealt with in the profit and loss account of the parent Company. 
2 Turnover, profit and net assets
Turnover, pre-tax profits and net assets all relate to computer software and video game retailing.
Turnover Operating profit Net assets
2004 2003 2004 2003 2004 2003
£’000 £’000 £’000 £’000 £’000 £’000
By geographical area:
United Kingdom and Ireland 512,473 492,718 19,017 27,666 112,221 128,054
Rest of Europe 94,187 67,347 (1,209) (1,297) 29,159 24,531
606,660 560,065 17,808 26,369 141,380 152,585
Operating profit is stated after charging goodwill amortisation. Turnover by origin and destination are not materially different.
3 Other operating expenses
2004 2003
£’000 £’000
Selling and distribution 114,616 100,974
Administrative expenses 42,232 29,812
156,848 130,786
Administrative expenses include goodwill amortisation of £5,962,000 (2003: £5,923,000) and exceptional costs of
£10,417,000 (2003: £103,000) (see note 4).
4 Exceptional costs
The exceptional charge in the year reflects the effect of the following actions:
■ In January 2004, the Group agreed terms with Electronics Boutique Inc (EBI) to terminate the 1995 Services
Agreement between the two companies resulting in a one off payment to EBI;
■ During the year, the Group commenced the construction of a new UK Distribution and Head Office facility which will
be completed during the year ending 31 January 2005; and
■ In January 2004, the Group announced the closure of its on-line gaming division.
The exceptional charge is made up as follows:
2004 2003
£’000 £’000
Termination of EBI services agreement 8,275 –
Distribution Centre and Head Office relocation 1,959 –
Closure of on-line gaming division 226 –
Re-branding of UK operations (43) 103
10,417 103
Notes to the Financial Statements
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
35 5 Operating profit
2004 2003
£’000 £’000
This is stated after charging:
Depreciation charge 10,170 8,109
Accelerated depreciation charge – (247)
Amortisation of intangible fixed assets 5,962 5,923
Operating lease rentals – leasehold premises 36,108 33,099
– other 346 334
Loss on disposal of fixed assets 125 184
Auditors’ remuneration – audit services 194 189
– non-audit services 86 138
The non-audit services provided by the auditors principally relate to the provision of tax services. Included in auditors’
remuneration for audit services above is £16,500 (2003: £16,500) in respect of the audit fee attributable to the 
parent Company.
6 Interest receivable and similar income
2004 2003
£’000 £’000
Bank interest receivable 737 1,037
Other interest receivable 27 15
764 1,052
7 Interest payable and similar charges
2004 2003
£’000 £’000
On bank loans and overdrafts 509 108
Interest on finance leases and hire purchase contracts 53 54
Other interest 33 94
Interest capitalised (331) –
264 256
8 Employees
Staff costs for all employees (including directors) consist of:
2004 2003
£’000 £’000
Wages and salaries 45,564 38,372
Social security costs 5,718 4,115
Other pensions costs 386 309
51,668 42,796
Notes to the Financial Statements continued
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
36 8 Employees (continued)
The average number of employees of the Group during the year, including directors, was as follows:
2004 2003
Number Number
Selling and distribution 3,795 3,633
Administration 419 411
4,214 4,044
Details of directors’ remuneration are included within the directors’ remuneration report on pages 22 to 27.
9 Taxation
(a)  Analysis of charge in the year 2004 2003
£’000 £’000
Current year
UK corporation tax 6,980 10,278
Adjustments in respect of prior periods (122) (23)
Overseas tax payable 12 26
Total current tax 6,870 10,281
Deferred tax
Origination and reversal of timing differences 801 327
Taxation on profit on ordinary activities 7,671 10,608
(b)  Factors affecting the tax charge for the year 2004 2003
£’000 £’000
Profit on ordinary activities before taxation 18,308 27,165
Profit on ordinary activities multiplied by the standard
rate of corporation tax in the UK of 30% (2003: 30%) 5,492 8,150
Effect of goodwill amortisation multiplied by the standard 
rate of corporation tax in the UK 1,789 1,777
7,281 9,927
Effects of:
Depreciation/(capital allowances) for the year in excess of capital allowances/(depreciation) 14 (66)
Other expenses not deductible for tax purposes 48 22
Movement in general provisions (26) (55)
Share options exercised (100) –
Utilisation of tax losses brought forward (175) (8)
Tax losses incurred but unutilised in the year – 789
Adjustments to tax charge in respect of previous periods (122) (23)
Other items (50) (305)
Current tax charge for the year 6,870 10,281
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
37 10 Dividends
2004 2004 2003 2003
Pence Pence
per share £’000 per share £’000
Interim paid 0.50 1,790 0.45 1,693
Final proposed 1.50 5,201 0.55 2,065
2.00 6,991 1.00 3,758
It is proposed that the final dividend will be paid on 16 July 2004 to shareholders on the register on 25 June 2004.
11 Earnings per share
The calculation of earnings per share for the year ended 31 January 2004 is based on the profit after taxation of
£10,637,000 (2003: £16,557,000). The calculation of basic earnings per share and diluted earnings per share is based 
on a weighted average number of 360,539,590 (2003: 376,009,811) shares in issue during the year. The number of
shares used in these calculations and the reconciliation of denominators used for basic and diluted earnings per share
calculations is set out in the table below:
Effect of
Basic share options Diluted
Year ended 31 January 2004 360,539,590 1,081,655 361,621,245
Year ended 31 January 2003 376,009,811 4,164,972 380,174,783
Additional disclosure has been provided in respect of earnings per share before amortisation of goodwill and exceptional
costs as the directors believe this gives a better view of ongoing maintainable earnings.
2004 2003
£’000 £’000
Basic earnings per share 2.95 4.40
Amortisation of goodwill 1.66 1.58
Exceptional costs 2.02 0.02
Basic earnings per share before amortisation of goodwill and exceptional costs 6.63 6.00
12 Intangible assets
Goodwill
£’000
Group
Cost
At 1 February 2003 112,752
Additions 408
Closure of on-line gaming division (331)
Exchange adjustment 60
At 31 January 2004 112,889
Amortisation
At 1 February 2003 20,592
Amortisation charge for the year 5,962
Closure of on-line gaming division (331)
Exchange adjustment 7
At 31 January 2004 26,230
Net book value
At 31 January 2004 86,659
At 31 January 2003 92,160
Notes to the Financial Statements continued
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
38 13 Tangible fixed assets
Improvements Fixtures, Assets in the 
Land and to leasehold fittings and course of
property property equipment construction Total
£’000 £’000 £’000 £’000 £’000
Group
Cost
At 1 February 2003 13,301 23,435 37,051 – 73,787
Additions 1,215 5,949 7,530 17,482 32,176
Acquisitions – 21 4 – 25
Disposals (745) (1,858) (3,506) – (6,109)
Exchange adjustment 294 295 237 – 826
At 31 January 2004 14,065 27,842 41,316 17,482 100,705
Depreciation
At 1 February 2003 2,817 9,262 19,966 – 32,045
Charge for the year 696 2,857 6,617 – 10,170
Disposals (257) (1,492) (3,085) – (4,834)
Exchange adjustment 17 70 90 – 177
At 31 January 2004 3,273 10,697 23,588 – 37,558
Net book value
At 31 January 2004 10,792 17 ,145 17 ,728 17 ,482 63,147
At 31 January 2003 10,484 14,173 17,085 – 41,742
The net book value of tangible fixed assets includes an amount of £953,000 (2003: £1,208,000) in respect of assets
held under finance lease and hire purchase contracts. The related depreciation charge for the year was £601,000 
(2003: £583,000). Land and property includes freehold property with a net book value of £nil (2003: £471,000). 
The depreciation charge on this property during the year was £nil (2003: £5,000). All other amounts in land and 
property relate to short leasehold property.
Assets under construction comprises the purchase of land at Basingstoke and construction costs to date, in relation to 
the new Head Office and Distribution facility, which is expected to be completed in early 2004.
The amount of interest capitalised during the year and included in the net book value of assets in the course of
construction amounted to £331,000 (2003: £nil).
14 Fixed asset investments
Company Long term
Investments loans Total
£’000 £’000 £’000
At 1 February 2003 53,604 6,000 59,604
Net additions at cost 228 – 228
Liquidation of EB Media Holdings SA (90) – (90)
At 31 January 2004 53,742 6,000 59,742
The subsidiary undertakings at 31 January 2004, which are all unlisted, are set out in note 34.
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
39 15 Stocks
2004 2003
Group £’000 £’000
Finished goods and goods held for resale 58,279 38,205
The directors consider that the replacement value of stocks is not materially different from their carrying value.
16 Debtors
Group Company
2004 2003 2004 2003
£’000 £’000 £’000 £’000
Amounts falling due within one year:
Trade debtors 8,345 4,224 – –
Amounts owed by subsidiary undertakings – – 36,432 22,209
Other debtors 1,229 2,221 – 228
VAT recoverable 546 672 – –
Corporation tax – 137 – –
Deferred tax asset (see note 20) 354 1,155 – 1
Prepayments and accrued income 9,001 9,114 63 164
19,475 17,523 36,495 22,602
17 Creditors: amounts falling due within one year
Group Company
2004 2003 2004 2003
£’000 £’000 £’000 £’000
Bank loan (£1,750,000 secured see note 18) 2,411 936 1,750 –
Bank overdraft 444 587 – –
Trade creditors 46,020 32,396 – –
Other creditors 1,296 746 101 82
Tax and social security costs 1,986 1,905 – –
VAT payable 10,478 13,963 – –
Dividends payable 5,201 2,065 5,201 2,065
Corporation tax 1,900 5,085 – –
Obligations under finance leases and hire purchase contracts 369 533 – –
Accruals and deferred income 27,266 13,707 575 1,209
97,371 71,923 7,627 3,356
Notes to the Financial Statements continued
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
40 18 Creditors: amounts falling due after more than one year
Group Company
2004 2003 2004 2003
£’000 £’000 £’000 £’000
Bank loans (secured) 14,448 – 14,448 –
Other loans 495 991 – –
Obligations under finance leases and hire purchase contracts 220 370 – –
15,163 1,361 14,448 –
Analysis of borrowings:
Finance lease and hire purchase contracts are repayable as follows:
In more than 1 year but not more than 2 years 171 291 – –
In more than 2 years but not more than 5 years 49 79 – –
220 370 – –
Other loans are repayable as follows:
In more than 1 year but not more than 2 years 495 991 – –
Bank loans are repayable as follows:
In more than 1 year but not more than 2 years 1,750 – 1,750 –
In more than 2 years but not more than 5 years 5,250 – 5,250 –
After 5 years 7,448 – 7,448 –
14,448 – 14,448 –
£16,198,000 of the bank loans are secured by a fixed charge over the new Head Office and Distribution facility and by a
floating charge over all remaining UK assets.
19 Financial instruments
The numerical disclosures below should be read in conjunction with the statements on financial instruments on 
pages 6 and 7.
The directors review any requirement for interest rate hedging during the year dependent upon the level of borrowings.
(a)  Interest rate and currency of borrowings
The currency and interest rate exposure of the Group’s borrowings is shown below:
2004 2003
£’000 £’000
Floating rate Euro borrowings 1,105 1,523
Floating rate Sterling borrowings 5,537 903
Fixed rate Sterling borrowings 11,745 991
18,387 3,417
The floating rate borrowings comprise bank borrowings and leases bearing interest rates based upon LIBOR and EURIBOR.
The interest rate on £11,250,000 of the fixed rate Sterling borrowings is 4.535%. The interest rate has been fixed through
the use of an interest rate swap agreement. The gains made on this agreement have not been material. The interest rate
on £495,000 of the fixed rate Sterling borrowing is 6% and is due for repayment on 31 July 2006. The interest rates on
the fixed rate financial liabilities have been fixed for the life of the liability. The weighted average interest rate of the fixed
rate financial liabilities is 4.593%.
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
41 19 Financial instruments (continued)
(b)  Interest rate and currency of cash balances
The currency and interest rate exposure of the Group’s floating rate cash balances is shown below:
2004 2003
£’000 £’000
Sterling 26,006 35,299
Euro 1,462 1,417
Swedish Krona 891 1,256
28,359 37,972
The floating rate assets comprise bank accounts bearing interest rates based upon LIBOR and EURIBOR. There are no
fixed rate financial assets.
(c)  Fair value of financial instruments
Set out below is an analysis of all the Group’s financial instruments by category. The fair value of floating rate borrowings is
the historical cost because the interest rate payments are based on market value.
2004 2003
£’000 £’000
Cash 28,359 37,972
Short term debt and current portion of long term debt (3,224) (2,056)
Long-term debt (15,163) (1,361)
There is no material difference between the book value and current value of these financial instruments.
(d)  The Group had no material monetary assets or liabilities that are not denominated in the functional currency of the
operating unit involved.
(e)  As at 30 April 2004, the Group had undrawn working capital facilities available to it of £20 million (2003: £20 million)
and EUR.1.8 million (2003: EUR.3.1 million) which expire within twelve months. There are no significant conditions
attached to these facilities.
20 Deferred taxation
2004 2003
Group £’000 £’000
Accelerated capital allowances (326) (139)
General provisions 31 17
Provision for reverse premiums received 209 209
Tax losses carried forward 440 1,068
Deferred taxation asset 354 1,155
At 1 February 2003 1,155 1,152
Deferred tax charge in the profit and loss account for the year (see note 9) (801) (327)
Effect on deferred taxation asset of final fair value adjustments in
respect of subsidiary undertakings acquired – 330
At 31 January 2004 354 1,155
Notes to the Financial Statements continued
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
42 21 Leasehold property incentives
Rent free periods and reverse premiums Group
£’000
At 1 February 2003 1,733
Rent free periods and reverse premiums received during the year 1,110
Released to profit and loss account (838)
At 31 January 2004 2,005
22 Called up share capital
2004 2003
£’000 Number £’000 Number
Authorised
Ordinary shares of 5p 24,000 480,000,000 24,000 480,000,000
Allotted, called up and fully paid
Ordinary shares of 5p 17,336 346,718,763 18,772 375,445,723
(a)  Shares issued
During the year, 1,473,040 (2003: 1,045,824) shares were issued to employees exercising share options granted 
under various option schemes. The total consideration received on the exercise of these options was £527,000 
(2003: £594,000).
Between the year end and 30 April 2004, a further 1,927 ,716 shares have been issued to employees exercising 
share options granted under various option schemes. The total consideration received on the exercise of these options
was £876,000.
(b)  Shares purchased
During the year, 30,200,000 shares (2003: 1,000,000 shares) were repurchased for cancellation by the Company 
at a cost of £16,533,255 (2003: £310,000).
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
43 22 Called up share capital (continued)
(c)  Share options
After taking account of options that had lapsed, the following options over shares were outstanding at 31 January 2004:-
Schemes No. of Exercise Exercise
shares price period
pence From To
1985 Approved employee share option scheme 6,836 19.75 21.09.97 20.09.04
13,400 29.00 12.05.00 11.05.07
1989 Unapproved employee share options scheme 50,000 39.25 16.10.00 16.10.04
1998 Executive share option scheme 277,552 69.50 06.10.01 05.10.08
Approved 37,600 79.75 07.01.02 06.01.09
952,300 41.75 03.12.02 02.12.09
100,666 45.00 01.02.03 31.01.10
689,800 57.00 13.10.03 12.10.10
178,300 132.00 15.11.04 14.11.11
18,900 138.00 01.05.05 30.04.12
1,571,557 107.00 19.07.05 18.07.12
142,000 42.25 10.01.06 05.10.08
919,380 62.25 09.06.06 08.06.13
1998 Executive share option scheme 152,404 78.25 01.10.01 30.09.08
Unapproved 158,272 69.50 06.10.01 05.10.08
66,924 67.25 15.10.01 14.10.08
18,826 79.75 07.01.02 06.01.09
417,700 41.75 03.12.02 02.12.09
1,988,250 45.00 01.02.03 31.01.10
140,200 57.00 13.10.03 12.10.10
339,200 77.50 25.04.04 24.04.11
1,007,800 132.00 15.11.04 14.11.11
360,700 138.00 01.05.05 30.04.12
1,029,985 107.00 19.07.05 18.07.12
682,550 42.25 10.01.06 05.10.08
910,600 56.00 07.05.06 06.05.13
857,000 59.50 14.05.06 13.05.13
3,655,620 62.25 09.06.06 08.06.13
Sharesave schemes 149,058 87.00 01.12.05 31.05.06
1,185,686 43.75 01.07.06 31.12.08
18,079,066
23 Share premium account
Group Company
£’000 £’000
At 1 February 2003 38,513 38,513
Arising on issue of shares during the year (net of expenses) 685 685
At 31 January 2004 39,198 39,198
Notes to the Financial Statements continued
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
44 24 Reconciliation of movements in equity shareholders’ funds
Group Company
2004 2003 2004 2003
£’000 £’000 £’000 £’000
Profit on ordinary activities after taxation 10,637 16,557 18,073 10,083
Dividends payable (6,991) (3,758) (6,991) (3,758)
Issue of shares during the year 759 1,542 759 2,352
Shares to be issued – (11,232) – (11,232)
Purchase of own shares (16,533) (310) (16,533) (310)
Translation differences on foreign currency
net investments in subsidiary undertakings 923 884 – –
Net (deductions)/additions to equity shareholders’ funds (11,205) 3,683 (4,692) (2,865)
Equity shareholders’ funds at beginning of year 152,585 148,902 78,933 81,798
Equity shareholders’ funds at end of year 141,380 152,585 74,241 78,933
25 Other reserves
Group Company
£’000 £’000
Merger reserve
At 1 February 2003 and 31 January 2004 76,907 76
Capital redemption reserve
At 1 February 2003 50 50
Arising during the year 1,510 1,510
At 31 January 2004 1,560 1,560
26 Profit and loss account
Group Company
£’000 £’000
At 1 February 2003 18,343 21,522
Translation differences on foreign currency net investments in subsidiary undertakings 923 –
Share buyback (see note 22) (16,533) (16,533)
Retained profit for the financial year 3,646 11,082
At 31 January 2004 6,379 16,071
The cumulative amount of goodwill resulting from acquisitions in previous years prior to the adoption of FRS10 
(Goodwill and intangible assets) which has been eliminated against Group reserves, net of goodwill attributable to
disposals before 31 January 2004, is £9,639,000 (2003: £9,639,000).
27 Acquisitions
Current year acquisitions
During the year the Group acquired the trade and assets of two further CentroMAIL franchises in Spain, as well as
releasing the £228,000 deferred consideration payment on account payable to the Spanish vendors. No further deferred
consideration is payable in respect of the acquisition of CentroMAIL.
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
45 28 Reconciliation of operating profit to net cash inflow from operating activities
2004 2003
£’000 £’000
Operating profit 17,808 26,369
Depreciation 10,170 7,862
Amortisation of intangible assets 5,962 5,923
Loss on disposal of tangible fixed assets 125 184
Increase in stocks (19,944) (806)
Increase in debtors (2,890) (1,995)
Increase/(decrease) in creditors 24,618 (755)
Increase in leasehold property incentives 272 584
36,121 37,366
29 Analysis of cash flows for headings netted in the cash flow statement
2004 2003
£’000 £’000
Returns on investments and servicing of finance
Interest received 764 1,052
Interest paid (542) (202)
Interest element of finance leases and hire purchase contracts (53) (54)
Net cash inflow from returns on investments and servicing of finance 169 796
Capital expenditure
Purchase of fixed assets (31,514) (22,455)
Sale of tangible fixed assets 1,150 192
Net cash outflow from capital expenditure (30,364) (22,263)
Acquisitions
Purchase of subsidiary undertakings (563) (569)
Net cash outflow from acquisitions (563) (569)
Financing
Issue of ordinary share capital 759 1,542
Share buyback (16,533) (310)
Long term loans received 17,446 –
Long term loans repaid (1,744) –
Short term loans repaid (343) (552)
Capital element of finance leases and hire purchase contracts (645) (687)
Net cash outflow from financing (1,060) (7)
Notes to the Financial Statements continued
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
46 30 Analysis of net funds
Cash at Current Debt due Debt due Finance
bank Overdrafts assets <1 year >1 year leases Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
At 1 February 2003 37,972 (587) 228 (936) (991) (903) 34,783
Cashflow (9,613) 143 – 343 (15,702) 645 (24,184)
Non cash changes – – (228) (1,750) 1,750 (331) (559)
Exchange movements – – – (68) – – (68)
At 31 January 2004 28,359 (444) – (2,411) (14,943) (589) 9,972
During the year, the Group entered into new finance lease arrangements in respect of assets with a total capital cost of
£331,000 (2003: £339,000).
31 Operating lease commitments
The Group leases certain land and buildings on short term leases. The rents payable under these leases are subject to 
re-negotiation at various intervals specified in the leases. Annual lease commitments under non-cancellable operating
leases were as follows:
Motor Land & Motor Land &
vehicles buildings vehicles buildings
2004 2004 2003 2003
Group £’000 £’000 £’000 £’000
Operating leases which expire:
Within one year –854 – 1,403
In two to five years 349 3,304 214 2,708
After five years –32,973 – 27,080
349 37,131 214 31,191
The average remaining term on operating leases over land and buildings in the UK and Ireland is 9.5 years.
The operating leases over land and buildings in Continental European operations have lengths of term for a maximum
period of 9 years.
32 Capital commitments
Group Company
2004 2003 2004 2003
£’000 £’000 £’000 £’000
Contracted for but not provided for in the accounts 6,198 – – –
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
47 33 Contingent liabilities
The Company has guaranteed certain liabilities and bank borrowings of its subsidiary undertakings. At 31 January 2004 
the liabilities covered by these guarantees amounted to £8,610,891 (2003: £8,038,884). In addition the Company has
guaranteed certain operating leases of its subsidiary undertakings with an annual lease commitment of £5,657,171 
(2003: £5,645,553).
On 23 March 2004, a claim for Euro 22.8m (comprising Euro 18.3m of deferred consideration (earn out) and 
Euro 4.5m for damages) was made against Game (Stores) Limited, a member of the Group, under the sale and 
purchase agreement relating to the acquisition on 8 October 2001 of the French company, ABC Games International SA.
The maximum amount of deferred consideration (earn out) in the original sale and purchaser agreement was Euro 18.3m.
The amount of deferred consideration payable was contingent on the financial performance of the acquired entity from
the date of acquisition to 31 January 2003. The directors consider, and reported in the annual report and accounts for the
year ended 31 January 2003, that the post acquisition performance of the acquired entity did not meet the necessary
financial performance targets to require any payments to be made for the deferred consideration.
The directors have taken legal advice and consider that, at this early stage in the proceedings, the claim is probably
without merit and accordingly no provision has been made in the financial statements.
34 Subsidiary undertakings
Country of
Name incorporation Nature of business
Game Stores Group Ltd* England Computer software and video game retailing
Game Retail (UK) Ltd* England Computer software and video game retailing
Game Digital Ltd* England On-line computer software and video game business
Game (Stores) Limited England Computer software and video game retailing
Game Stores Group Sweden AB* Sweden Computer software and video game retailing
Engine Tecnology Systems S.L.* Spain Computer software and video game retailing
ABC Games International SA France Computer software and video game retailing
Blue 26 Limited
(formerly The Electronics Boutique Ltd) England non-trading
Game Limited* England non-trading
Blue 25 Limited England non-trading
Game Financial Services Limited * England non-trading
Pure Retail Stores Limited * England non-trading
Pure Entertainment Stores Limited * England non-trading
The Company retains 100% of the voting rights and ordinary share capital of all the above subsidiary undertakings.
* Direct subsidiary of The GAME Group plc
Notes to the Financial Statements continued
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
48 Notice is hereby given that the 38th Annual General Meeting of THE GAME GROUP PLC will be held on 7 July 2004 at 
10.00 a.m. at the offices of THE GAME GROUP PLC, Unity House, Telford Road, Basingstoke, Hampshire, RG21 6YJ.
Ordinary business
1. To approve the directors’ remuneration report for the year ended 31 January 2004.
2. To receive and, if approved, adopt the Financial Statements of the Company for the year ended 31 January 2004 and the
reports of the directors and auditors thereon.
3. To declare a final dividend on the ordinary shares of the Company for the year ended 31 January 2004 of 1.50 pence per
ordinary share.
4. To re-elect Martin Long (group chief executive and an executive director) as a director of the Company.
5. To re-elect William Slee (a non-executive director and a member of the audit, remuneration and nominations committees)
as a director of the Company.
6. To elect David Thomas (group finance director and an executive director) as a director of the Company.
7. To elect Jean-Paul Giraud (a non-executive director and a member of the audit, remuneration and nominations
committees) as a director of the Company.
8. To re-appoint BDO Stoy Hayward LLP as auditors of the Company.
9. To authorise the directors to determine the auditors’ remuneration.
Special business
To consider and, if thought fit, to pass the following resolutions which will be proposed as ordinary resolutions:
10. That in order to operate The Game Group 1998 Executive Share Option Scheme (“the Scheme”) in France, the rules 
of the scheme, as amended by the Fourth Schedule thereto, in the form produced to the meeting and initialled by the
Chairman for the purpose of identification, as varied from time to time, be approved and that the directors be authorised
to do all acts and things necessary or expedient to operate the Scheme in France.
11. That the directors be generally and unconditionally authorised pursuant to Section 80 of the Companies Act 1985 (the
“Act”) to exercise all of the powers of the Company to allot relevant securities (within the meaning of that section) up to
an aggregate nominal amount of £5,806,801 provided that this authority shall expire (unless previously renewed, varied 
or revoked by the Company in general meeting) 15 months after the date of the passing of this resolution, or, if earlier, at
the conclusion of the next Annual General Meeting of the Company after the date of the passing of this resolution, save
that the Company may before expiry of this authority make an offer or agreement which would or might require relevant
securities to be allotted after such expiry and the directors may allot relevant securities in pursuance of such an offer or
agreement as if the authority conferred hereby had not expired.
12. To authorise the Company to use shares held in treasury for the purposes of or pursuant to the employees’ share
schemes operated by the Company.
To consider and, if thought fit, to pass the following resolutions which will be proposed as special resolutions:
13. That, subject to the passing of resolution 11, the Directors be generally empowered pursuant to Section 95 of the
Companies Act 1985 (the “Act”) to allot equity securities (within the meaning of Section 94 of the Act), for cash, pursuant
to the authority conferred by resolution 11 and/or where such allotment constitutes an allotment of equity securities by
virtue of section 94(3A) of the Act, as if sub-section (1) of Section 89 of the Act did not apply to any such allotment,
provided that the power conferred by this resolution:
shall (unless previously renewed, varied or revoked by the Company in general meeting) expire 15 months after the date
of the passing of this resolution or, if earlier, at the conclusion of the next Annual General Meeting of the Company after
the date of the passing of this resolution, save that the Company may before expiry of this power make an offer or
agreement which would or might require equity securities to be allotted after such expiry and the directors may allot
securities in pursuance of such an offer or agreement as if the power hereby had not expired; and
Notice of AGM
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
49 is limited to:
(i) allotments of equity securities in connection with a rights issue or otherwise in favour of holders of ordinary shares
and in favour of all holders of any other class of equity security in accordance with the rights attached to such class
(in each case excluding any shareholder holding shares as treasury shares) where the equity securities offered to
such persons are proportionate (as nearly as may be) to the respective existing holdings of equity securities held by
them or are otherwise allotted in accordance with the rights attaching to such equity securities provided that the
directors may make such arrangements as they consider necessary or expedient to deal with equity securities
representing fractional entitlements or legal, practical or regulatory problems in any territory; and
(ii) allotment (otherwise than pursuant to sub paragraph (i) above) of equity securities for cash up to an aggregate
nominal amount of £870,000.
14. That the Company be generally and unconditionally authorised to make one or more market purchases (within the
meaning of Section 163(3) of the Companies Act 1985) on the London Stock Exchange of ordinary shares of 5p in the
capital of the Company (“ordinary shares”) provided that:
(a) the maximum aggregate number of ordinary shares authorised to be purchased is 34,800,000 
(representing 9.99 per cent of the issued ordinary share capital);
(b) the minimum price which may be paid for an ordinary share is 5p;
(c) the maximum price which may be paid for an ordinary share is an amount equal to 105 per cent of the average 
of the middle market quotations for an ordinary share as derived from The London Stock Exchange Daily Official 
List for the five business days immediately preceding the day on which the ordinary share is purchased, exclusive 
of expenses;
(d) the authority conferred by this resolution shall, unless renewed, expire on the date falling 15 months after the 
date of the passing of this resolution, or, if earlier, at the conclusion of the next Annual General Meeting of the
Company; and
(e) the Company may make a contract to purchase ordinary shares under this authority before the expiry of the
authority which will or may be executed wholly or partly after the expiry of the authority, and may make a 
purchase of ordinary shares in pursuance of any such contract.
By order of the Board
Jeremy Gorman FCA
Company Secretary
7 May 2004
Registered Office:
Charter Court
Third Avenue
Southampton
SO15 0AP
Notes
1. Shareholders entitled to attend and vote at the meeting may appoint one or more proxies to attend and, on a poll, vote in their place. 
A proxy need not be a shareholder of the Company. A form of proxy is enclosed with this document, and members who wish to use 
it should see that it is deposited, duly completed, with the Company’s Registrars not less than 48 hours before the time fixed for the
meeting. Completing and posting of the form of proxy will not preclude shareholders from attending and voting in person at the Annual
General Meeting should they wish to do so.
2. Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, the Company specifies that only those shareholders
registered in the Register of Members of the Company as at 6.00 pm on 5 July 2004 shall be entitled to attend or vote at the aforesaid
meeting in respect of the number of shares registered in their name at that time. Changes to entries on the Register of members after
6.00 pm on 5 July 2004 shall be disregarded in determining the rights of any person to attend or vote at the meeting.
3. Copies of the executive directors’ service contracts, the terms of appointment of the non-executive directors and the Register of Directors’
Interests in the share capital of the Company, are available for inspection at the registered office of the Company during usual business
hours and at Unity House, Telford Road, Basingstoke, Hampshire, RG21 6YJ from 9.45 am on 7 July 2004 until the close of the Annual
General Meeting.
Notice of AGM continued
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
50 Shareholders’ Notes
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
51 31 January 31 January 31 January 31 January 31 January 
2000 2001 2002 2003 2004
£’000 £’000 £’000 £’000 £’000
Turnover 251,250 307,138 453,776 560,065 606,660
Gross profit 77,285 100,420 135,575 157,155 174,656
Operating profit before goodwill amortisation 
and exceptional costs 7,841 13,762 31,179 32,395 34,187
Operating profit 3,145 8,647 20,220 26,369 17,808
Profit on ordinary activities before taxation 2,782 7,858 20,584 27,165 18,308
Profit on ordinary activities after taxation 292 3,668 12,018 16,557 10,637
Dividends per share 0.60p 0.66p 0.80p 1.00p 2.00p
Earnings per share - basic 0.09p 1.06p 3.33p 4.40p 2.95p
Earnings per share before amortisation 
of goodwill and exceptional costs - basic 1.45p 2.53p 5.90p 6.00p 6.63p
Number of owned stores at end of 
year (including concessions) 298 311 389 449 491
Average number of employees 2,072 2,648 3,162 4,044 4,214
Fixed assets 124,564 117,436 138,695 133,902 149,806
Net current assets/(liabilities) (13,917) (5,529) 15,977 21,777 8,742
Net assets 108,082 109,851 148,902 152,585 141,380
Net cash inflow from operating activities 20,569 23,185 29,712 37,366 36,121
Five Year Record
THE GAME GROUP PLC
Annual Report & Accounts 2003 - 2004
52  The GAME Group plc  
THE GAME GROUP PLC
Unity House
Telford Road
Basingstoke, Hampshire
RG21 6YJ
Tel: 01256 784000
Fax: 01256 784093
www.gamegroup.plc.uk
www.game.net