Annual Report & Accounts 2008
2008
annual report
www.IDOXplc.com Contents
1 Financial and Operational Highlights
2 Chairman’s Statement
4 Chief Executive’s Report
8 Chief Financial Officer’s review
10 Board of Directors
11 Directors’ Report
15 Report on Remuneration
17 Corporate Governance Report
19 Report of the Audit Committee
20 Report of the Independent Auditors (Group)
21 Consolidated Income Statement
22 Consolidated Balance Sheet
24 Consolidated Statement of Changes in Equity
25 Consolidated Cash Flow Statement 
26 Notes to the Accounts
57 Report of the Independent Auditors (Company) 
58 Company Balance Sheet
59 Notes to the Company Financial Statement
66 IDOX plc Software and Services at a glance
68 Company Information
Printed on 50% recycled fibre 50% FSC (Forest Stewardship Council) virgin fibre. 1 IDOX plc Annual Report and Accounts 2008
Financial and Operational Highlights
•	 	 R e v e n ue s	u p	6 5 %	t o	£ 3 4 . 0 m	(2007: £20.6m) ;	9%	o r g a n i c	g r o w t h	 
i n	c o r e	s o f t w a r e	b u s i n e s s
•	 	 G r o s s	m a r g i n	o f	7 9%	(2007: 74%)
•	 	 N o r m a l i s e d	p r e - t a x	p r o fi t *	i n c r e a s e d	1 9 3 %	t o	£ 7 . 4 m	(2007: £2.5m) 
•	 	 P r e - t a x	p r o fi t s	u p	2 6 7 %	t o	£ 6 . 6 m	(2007: £1.8m) 
•	 	 N o r m a l i s e d	E P S *	u p	8 0 %	t o	1 . 6 2 p	(2007: 0.90p)
•	 	 B a s i c	E P S	u p	1 2 2 %	t o	1 . 4 0 p	(2007: 0.63p)
•	 	 £ 7 . 7 m	c a s h	a t	b a n k	(2007: £8.9m)	a f t e r	a c q u i s i t i o n	o f	P l a n t e c h	f o r	 
n e t	c o s t	o f	£ 3 . 8 m	
•	 	 N e t	c a s h	o f	£ 1 . 0 m	i n c l u d i n g	a l l	b o r r o w i n g s	(2007: £1.3m)
•	 	 R e c u r r i n g	r e v e n ue s	m a k e	u p	4 6 %	o f	c o r e	s o f t w a r e	r e v e n ue s	
•	 	 D i v i de n d	p r o p o s e d	o f	0 . 1 1 5 p	p e r	s h a r e
•	 	 R e c o r d	£ 2 . 3 m	c o n t r a c t	w i n	i n	S c o t l a n d,	de l i v e r y	o n	s c h e d u l e
•	 	 P l a n t e c h	i n t e g r a t i o n	s t r e n g t h e n s	m a r k e t	p o s i t i o n	
•	 	 N o w	s e r v i n g	m o r e	t h a n	7 1 %	o f	l o c a l	a u t h o r i t i e s
* Normalised pre-taxed profit is derived by adding back amortisation, share option costs, capitalised R&D expenditure (£0.4m) and fair value movements on interest rate swaps (£0.1m).
For the year ended 31 October 2008 2 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
I am pleased to report that we have made 
decisive progress in our aim to become a 
leading supplier of high-quality software 
and services to the public sector. Full-year 
revenues increased 65% to £34.0m, with 
profitability increasing even more strongly, 
up 267% to £6.6m.
 
Our increase in profitability resulted 
from good like-for-like organic growth 
in our main software business and from 
cost savings achieved by integrating the 
software activities of IDOX, CAPS Solutions 
and Plantech into a single unit. We expect 
this integration to deliver additional 
operational benefits and savings in the 
new financial year. 
Cash flow was strong, particularly in the 
first half of the year when we collected 
annual maintenance revenues, and we 
ended the year with net cash of £1.0m 
after acquisition costs and our first 
payments of corporation tax. We are 
proposing to increase our dividend to 
0.115p pence per share (2007: 0.1p). 
Despite the current economic conditions, 
demand in our core local government 
market remains robust. With more than 
330 local authorities using IDOX software, 
we are the leader in the supply of land and 
property solutions and a growing provider 
of software to revenues and benefits 
departments. 
Building on this market-leading position 
in land and property services, we have 
a growing capability to cross sell and to 
provide web-based public access services 
or portals across the entire range of local 
authority activities and potentially into the 
wider public sector as well. This is also true 
of our proprietary document management 
software.
Although our smallest business, consulting 
and content-based solutions, experienced 
a softening in revenues in the second 
half of the year, our recruitment business 
sustained the improvement seen in the 
first half of the year. 
We completed our management team by 
welcoming William Edmondson as our 
new Chief Financial Officer at the end 
of September 2008. Will was previously 
Finance Director for the Europe, Middle-
East, India & Africa Region of Autodesk 
Inc. (NASDAQ: ADSK), which experienced 
rapid growth in revenues during his tenure 
to $1bn and where he controlled a budget 
of $250m, in addition to integrating a 
number of acquisitions.
Having successfully integrated Plantech, 
which was acquired in February 2008, we 
C h a i r m a n ’ s	S t a t e m e n t
Full-year revenues 
increased 65% 
to £34.0m, with 
profitability increasing 
even more strongly, 
up 267% to £6.6m 3 IDOX plc Annual Report and Accounts 2008
continue to look for suitable opportunities 
to acquire complementary businesses that 
will enable us to gain market share in the 
public sector, improve cross-selling and cut 
costs where necessary. 
IDOX ended its 2008 financial year as a 
larger and demonstrably more successful 
company and I would like to thank all of 
those who have worked so hard to make it 
possible.  
We have begun the new financial year 
well, with sales visibility ahead of 2008, 
a leading position in our core market, 
an excellent suite of products, strong 
recurring revenues and a healthy balance 
sheet. This is a good starting position from 
which to face a very challenging year for 
the UK economy. 
M a r t i n	B r o o k s
Chairman
22 January 2009
London 
Orkney Isles 
IDOX group software 
customer
Northern Ireland
Planning Service
Shetland Isles 
Isles of Scilly 
see 
inset
I D O X	G R O u P	u k	l O C a l	a u t h O R I t y	C u S t O M E R S 4 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
strengthening of management and 
continuing improvements in processes and 
quality. The impact has been that major 
projects have been delivered on time but 
to an even higher quality.  
Our Glasgow office delivered the first part 
of a new planning and appeals portal for 
the Scottish Executive. This was IDOX’s 
largest contract to date, worth £2.3m over 
three years.
In addition, IDOX gained notable contract 
wins at authorities including Eastleigh, 
Sheffield, South Gloucester, Shropshire, 
West Lindsey and Westminster, with 
further development work completed 
for the Northern Ireland Planning 
Department. 
Our software development team has made 
considerable progress in improving quality 
control and resource planning, successfully 
delivering on schedule significant 
upgrades to all our product lines. Other 
achievements include the completion of 
a two year development of a new public 
access system, and a significant upgrade 
to our revenues & benefits document 
management and workflow solution that 
The market for software and services for 
local government has remained robust 
against a backdrop of difficult conditions 
in the wider economy. Driven by the need 
to improve services and become more 
accessible to their communities, local 
authorities are continuing to invest in 
software and services that deliver tangible 
benefits and a rapid return on investment. 
However, the consolidation of suppliers 
and IT platforms has changed the local 
government market significantly over 
the past year, reducing both choice and 
competition and leaving IDOX as the only 
quoted company in the sector.
With the addition of Plantech we now 
supply more than 71% of the UK’s local 
authorities with leading products that are 
fully integrated from public-access web 
pages through to back-end databases 
and case-management systems. From 
our leading position in segments such as 
land & property and revenues & benefits, 
we will build the IDOX business through 
product innovation, higher levels of cross 
selling and strategic acquisitions.
S o f t w a r e	b u s i n e s s
On a like-for-like basis revenues grew 9% 
year on year with a higher percentage 
of revenues coming from product 
and services and less from low margin 
contracted out backscanning or hardware 
purchases.
The Software business has undergone 
significant change in the past year, 
with the integration of Plantech, a 
C h i e f	E x e c u t i v e ’ s	R e p o r t
With the addition 
of Plantech we now 
supply more than 
71% of the UK’s local 
authorities. 5 IDOX plc Annual Report and Accounts 2008
our own in-house technology, the 
Enterprise Management tool, to deliver 
improvements to the delivery process. 
After the roll out of this in the final 
quarter of the 2008 financial year, it is now 
being linked to a market leading software-
as-a-service CRM system to deliver 
end-to-end paperless processing.
S o l u t i o n s	b u s i n e s s
Demand for the Solutions business, which 
accounts for just 8% of Group revenues, 
has suffered from the economic downturn 
with key private-sector projects being 
delayed or postponed indefinitely. Because 
our consultancy business is involved in the 
early-stage design and architecture phases 
of major IT projects, it is therefore among 
the first to be affected.  In the public 
sector a number of managed content-rich 
web sites have been withdrawn due to 
changes in government policy. Overall 
revenues declined year on year by 22%.
However, we continue to see a steady 
flow of opportunities for consultancy, 
recruitment and training particularly from 
non-departmental public bodies (NDPBs) 
and are addressing this by focusing on 
services connected with efficient and 
integrates with market-leading back-office 
systems from other vendors. The Group’s 
product portfolio has been further 
enhanced with the launch of Plantech’s 
Enterprise Management tool, which is 
being made available to our wider Uniform 
customer base.
We have merged the operations and 
customer support areas of the three 
software businesses and strengthened 
the business with management from 
across the Group. We have introduced 
a new resource-planning system using 
IDOX gained notable 
contract wins at 
authorities including 
Eastleigh, Sheffield, 
South Gloucester, 
Shropshire, West 
Lindsey and 
Westminster 6 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
Software 80%
Information
Solutions 8%
Recruitment
12%
Software 64%
Information
Solutions 16%
Recruitment
20%
12 months to 31 October 2008
12 months to 31 October 2007
Software 80%
Information
Solutions 8%
Recruitment
12%
Software 64%
Information
Solutions 16%
Recruitment
20%
12 months to 31 October 2008
12 months to 31 October 2007
C h i e f	E x e c u t i v e ’ s	R e p o r t	c o n t ’ d
D I v I S I O N a l	a N a l y S I S :	R E v E N u E	M I X
Profit/(loss) before tax (£m)
2008 2007 2006 2005 2004
(0.52)
0.88
0.09
1.80
6.57
2008 2007 2006
Turnover (£m)
2005 2004
13.03
20.62
34.03
14.16
9.56
Profit/(loss) before tax (£m)
2008 2007 2006 2005 2004
(0.52)
0.88
0.09
1.80
6.57
2008 2007 2006
Turnover (£m)
2005 2004
13.03
20.62
34.03
14.16
9.56 7 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
C h i e f	E x e c u t i v e ’ s	R e p o r t	c o n t ’ d
effective SharePoint deployment and 
the marketing of programmes delivering 
Knowledge Harvesting and Knowledge 
Management Health Checks to protect the 
IP of businesses during restructuring.
R e c r u i t m e n t	b u s i n e s s
The Recruitment business, which 
accounts for 12% of Group revenues, 
increased turnover by 7% year on year 
through a growth in contract and interim 
staff services to the banking, legal 
and government sectors. Permanent 
placements have also held up despite 
the economic outlook. The recruitment 
market in the specialist area of knowledge 
and information management remains 
stable with continued demand for interim 
managers and senior appointments.
S u m m a r y	a n d	o u t l o o k	
Through a strategy of acquisition and 
reorganisation, IDOX has transformed 
itself into a leading force in local 
government software, with a reputation 
for delivering innovative products 
and services backed by high-quality 
implementation and support. At the 
same time, this transformation has 
delivered substantial cost savings and 
strong growth in revenues, profitability 
and cash generation, all underpinned 
by a high level of recurring licence and 
maintenance revenues. Though vigilant to 
the challenges ahead, we are cautious but 
confident about our future.  
R i c h a r d	k e l l e t t - C l a r k e
Chief Executive Officer
22 January 2009
IDOX has 
transformed itself 
into a leading force 
in local government 
software 8 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2007
to be vigilant on our cost base going 
into 2009 and expect to incur a small 
restructuring charge in 2009 as we finalise 
the integration of our acquisitions.
Normalised pre-tax profits, excluding 
amortisation and share options costs and 
including capitalised R&D expenditure, 
increased almost threefold to £7.4m 
(2007: £2.5m). Pre-tax profits on an IFRS 
basis, which the Group has adopted in the 
current financial year, more than tripled 
to £6.6m (2007 (restated for IFRS): £1.8m). 
Further explanation on the impact of 
transition to IFRS was provided in our 2008 
interim report.
Segmental profit for the software division 
increased nearly fourfold to £7.5m (2007: 
£2.1m). The Solutions business fell into 
a small loss of £0.2m as a result of the 
downturn in consulting services during 
the year (2007: breakeven). As a result, 
decisive action has already been taken 
to return the division to profitability 
by reducing its cost base and driving 
operational efficiencies. The recruitment 
Revenues increased by 65% to £34.0m 
(2007: £20.7m) following robust organic 
growth, the maiden contribution of 
Plantech, acquired in February 2008, major 
contract wins across the business and the 
full-year impact of revenues from the 
Uniform product range.
  
The Software business doubled its revenue 
in the year and now accounts for 80% of 
Group revenues, or £27.1m (2007: 64%, 
£13.2m), while the Solutions business 
contributed £2.6m or 8% of Group 
revenues (2007: 16%, £3.3m). Revenues 
in the Recruitment business increased by 
7% to £4.4m, representing 13% of Group 
revenues (2007: 20%, £4.1m). 
Recurring revenues are a salient feature of 
our business, deriving from maintenance 
and subscription services linked to annual 
increases with inflation. Some 46% of our 
core Software revenues are recurring.
Gross margins have improved significantly 
as a result of the increasing proportion of 
software sales making up Group revenues. 
In 2008 the Group achieved a gross margin 
of 79% (2007: 74%).
Although operating costs increased as 
a consequence of the two acquisitions, 
the integration and cost-saving 
programmes undertaken resulted in a 
substantial improvement in EBITDA which 
increased threefold to £8.6m (including 
capitalisation of certain R&D costs as 
required by IFRS and excluding share 
option costs). The EBITDA margin was 
25% against 14% in 2007. We continue 
For the year ended 31 October 2008
C h i e f	F i n a n c i a l	O f fi c e r ’ s	r e v i e w
The software 
business doubled its 
revenue in the year 
and now accounts 
for 80% of Group 
revenues 9 IDOX plc Annual Report and Accounts 2008
The Board proposes to pay an increased 
dividend of 0.115p per share, subject to 
shareholder approval. 
The business is strongly cash generative, 
ending the year with £7.7m in cash and a 
net cash position of £1.0m, after repaying 
£1.0m of debt and funding the acquisition 
of Plantech from existing cash resources. 
In addition, for the first time, the Group 
was required to make advance payments 
of corporation tax as a result of its recent 
move to strong profitability.
W i l l i a m	E d m o n s o n
Chief Financial Officer
22 January 2009
business returned to profitability, turning 
a loss of £0.3m in 2007 into a profit of £0.2m.
The Group has continued its successful 
integration of CAPS (acquired in June 
2007) and of Plantech, which was 
acquired in February 2008. During the 
2008 financial year Plantech contributed 
revenue of £3.2m and profit before tax 
of £1m. Certain provisions and accruals, 
established in relation to the CAPS 
acquisition have been successfully resolved 
within original estimates and therefore 
have been released in the year (see critical 
accounting estimates and judgements 
section of accounting policies).
Adjusted earnings per share increased 
by 80% from 0.90p to 1.62p. Reported 
earnings per share increased by 122% to 
1.40p, (2007: 0.63p).
earnings per share 
increased by 122% 
to 1.40p 10 IDOX plc Annual Report and Accounts 2008
Chairman:
M a r t i n	B r o o k s	( a g e d	5 8 )	
Martin Brooks was CEO of Financial 
Times Information, now Interactive Data 
Corporation, the world’s leading supplier 
of securities valuation data (1994-98). Prior 
to that he was MD of Extel Financial Ltd; 
part of a career spanning 30 years in
newspapers, information publishing and 
IT, which started at the Financial Times in 
1977.  He chaired the publishing arm 
of The Institute of Chartered Accountants 
in England and Wales until 2002 and has 
also been a director or adviser to other 
companies.
Peter
Lilley
Richard 
Kellett-Clarke
Martin
Brooks
Christopher
Wright
William 
Edmondson
Non-Executive Director:
R t .	h o n .	P e t e r	l i l l ey	M P	( a g e d	6 5 )
Peter Lilley, MP for Hitchin  and  
Harpenden,  was Parliamentary 
Private Secretary to Ministers for Local 
Government and after a period at the 
Treasury  served as Secretary of State 
for Trade and Industry and Secretary of 
State for Social Security until 1997.  He 
is a Non-Executive Director of Melchior 
Japan Investment Trust plc,  Deputy 
Chairman of Tethys Petroleum Ltd and 
a Member of the Advisory Board of the 
School of Management at the University 
of Southampton.  He is the senior 
independent Non-Executive Director of 
IDOX and chairs the Audit Committee.
Non-Executive Director:
C h r i s t o p h e r	W r i g h t	( a g e d	5 1 )	
Christopher Wright was previously Global 
Head of Dresdner Kleinwort Capital. He 
is now chairman of EMAlternatives LLC, 
a Director of Merifin Capital, and holds 
directorships of Roper Industries Inc and 
other public and private companies in the 
USA and elsewhere.  He is an independent 
Non-Executive Director and chairs the 
Renumeration Committee.
Chief Executive Officer:
R i c h a r d	k e l l e t t - C l a r k e	( a g e d	5 4 )
Richard Kellett-Clarke has 25 years of 
directorial experience.  He joined IDOX 
first as CFO, then was appointed MD of 
the software division, followed by COO in 
2007. He was appointed CEO in November 
2007. Before this he has held a number of 
CFO appointments with Brady plc, Pickwick 
Group plc, Pearson PLC and Invensys plc. In 
addition he was a founder and Managing 
Director of AFX NEWS Ltd, now part of 
Thomson Reuters), 
IT Director of Financial Times Information, 
and founding director of Sealed Media Ltd. a 
DRM Internet start up (now part of Oracle).
Chief Financial Officer:
W i l l i a m	E d m o n d s o n	( a g e d	3 9 )
William Edmondson previously spent 7 
years at Autodesk inc., latterly as Finance 
Director for the Europe, Middle-East, 
India & Africa region.  Autodesk inc. 
is the world’s leader in 2D and 3D 
Design software.  Prior to that he was 
a divisional controller at ITV plc and 
Finance Director of a Technology start-
up focused on e-security.  He is a UK 
Chartered Accountant, having trained at 
PriceWaterhouseCoopers.
Bo a r d	o f	D i r e c t o r s
For the year ended 31 October 2008 11 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
D i r e c t o r s’	R e p o r t
The Directors are pleased to submit their report and audited accounts for the year ended 
31 October 2008.
P r i n c i p a l	a c t i v i t i e s	a n d	r e v i e w	o f	b u s i n e s s
The Company is a holding company.  The principal activities of the Group are the 
development and supply of information and knowledge management products and 
services.  A more detailed review of the business can be found in the Chairman’s statement, 
Chief Executive’s report, and Chief Financial Officer’s review on pages 2 to 9.
R e s u l t s	a n d	d i v i d e n d s
The audited financial statements for the year ended 31 October 2008 are set out on 
pages 21 to 65.  The Group’s profit for the year after tax amounted to £4,784,000 (2007: 
£1,687,000).  The Directors paid a dividend of 0.1 pence per share in the first half of the 
2008 financial year, in respect of the year ended 31 October 2007. The Directors will 
propose, at the forthcoming AGM, a dividend of 0.115 pence per share in respect of the year 
ended 31 October 2008.
D i r e c t o r s	a n d	t h e i r	i n t e r e s t s
The Directors who served during the year and their beneficial interests (including those of 
their immediate families) in the Company’s 1p ordinary share capital were as follows:
Number of Shares 31 October 2008 1 November 2007
J M Wisbey 
1
N/A 12,643,333
C Wright 702,222 452,222
Rt. Hon. P B Lilley MP 533,000 533,000
M Brooks 
2
2,973,206 2,423,206
R G Q Kellett-Clarke 
3
5,484,848 3,066,667
W Edmondson - -
N Oxbrow N/A 11,610,768
S Ainsworth 
4
N/A 1,271,130
1 
2007: 11,266,666 of these shares are held in a trust in which John Wisbey is a beneficiary.
2 
2,702,127 (2007: 2,152,127) of these shares are held through a Self Invested Pension Plan.
3 
1,466,667 (2007: 1,466,667) of these shares are held through a Self Invested Pension Plan and 1,200,000 (2007: 1,200,000) shares are held through 
certain members of his family and a family trust.
4 
2007: 1,271,130 of these shares are held through a Self Invested Pension Plan.
Steve Ainsworth was appointed to the board on 7 June 2007 and resigned on 16 November 
2007. In connection with the resignation a total payment of £120,000 was made as 
compensation for loss of office (see Report on Remuneration). John Wisbey and Nigel 
Oxbrow resigned from the board on 28 February 2008. Will Edmondson was appointed to 
the board on 29 September 2008.
In addition to the shareholdings listed above, Martin Brooks and Richard Kellett-Clarke have 
been granted options over ordinary shares.  Full details of these options are given in the 
Report on Remuneration on page 16.
Details of the Directors’ service contracts can be found in the Report on Remuneration on 
page 16. 12 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
D i r e c t o r s’	R e p o r t	c o n t ’ d
C h a r i t a b l e	a n d	p o l i t i c a l	d o n a t i o n s
The Group made £6,000 charitable donations during the year (2007: £Nil) and no political 
donations during the year (2007: £Nil).
P a y m e n t	o f	c r e d i t o r s
It is the group’s practice to agree credit terms with all suppliers and to pay all approved 
invoices within these agreed terms.  The average trade creditor days for the year were 70 
days (2007: 73 days).
S u b s t a n t i a l	s h a r e h o l d i n g s
As at 5 December 2008 the Company was aware of the following interests in 3% or more of 
its issued share capital: 
Shareholder Number of shares % Holding
ISIS Equity Partners 26,162,334 7.65
Herald Investment Trust plc 25,966,667 7.59
Rensburg Sheppards 16,410,050 4.77
Invesco plc 13,700,000 4.01
Highclere International Investors 12,125,000 3.55
Gartmore Investment Ltd 10,800,000 3.16
Close Investment Ltd 10,500,000 3.07
Octopus Investments Ltd 10,500,000 3.05
h e a l t h ,	s a f e t y	a n d	e n v i r o n m e n t a l	p o l i c i e s
The Group recognises and accepts its responsibilities for health, safety and the environment 
(H,S&E) and has a dedicated team which provides advice and support in this area.  The team 
members regularly attend external H,S&E courses and internal reviews are performed on a 
regular basis to ensure compliance with best practice and all relevant legislation.
E m p l o y e e	c o n s u l t a t i o n
The policy of informing and consulting with employees is maintained by means of 
regular team briefs and meetings.  Employees are encouraged to present their views and 
suggestions in respect of the Group’s performance.  In addition, the Group has an intranet 
which facilitates faster and more effective communication.
A Share Investment Plan is in place to allow employees a tax efficient way of investing in 
the Company. The Company purchases matching shares which become the property of the 
employee after a three year vesting period.
F i n a n c i a l	r i s k	m a n a g e m e n t	o b j e c t i v e s	a n d	p o l i c i e s
The Group uses various financial instruments which include cash, equity investments, 
bank loans and items such as trade debtors and trade creditors that arise directly from 
its operations. The main purpose of these financial instruments is to raise finance for the 
Group’s operations.  1 3 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
D i r e c t o r s’	R e p o r t	c o n t ’ d
The main risks arising from the Group’s financial instruments are interest rate risk and 
credit risk. The directors review these risks on an ongoing basis. This policy has remained 
unchanged from previous years.
C r e d i t	r i s k
The Group’s principal financial assets are cash and trade debtors. The credit risk associated 
with cash is limited as the counterparties have high credit ratings assigned by international 
credit-rating agencies. The principal credit risk arises therefore from its trade debtors. 
In order to manage credit risk, the management review the debt ageing on an ongoing 
basis, together with the collection history and third party credit references where 
appropriate. 
l i q u i d i t y	r i s k
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet 
foreseeable needs and to invest cash assets safely and profitably.
I n t e r e s t	r a t e	r i s k
Any funds over and above the current working capital requirements of the Group are 
invested in high interest deposit accounts. The Group’s bank borrowings are split between 
those bearing interest at rates linked to the LIBOR, and those whose rate has effectively 
been fixed by the use of an interest rate swap arrangement.
P r i n c i p a l	r i s k s	a n d	u n c e r t a i n t i e s
The principal risks and uncertainties affecting the Group include the following:
• 	 P o l i t i c a l 	 – 	 t h e 	 G r o u p 	 ha s 	 a 	 l a r g e 	 c u s t o m e r 	 b a s e 	 i n 	 l o c a l 	 g o v e r n m e n t . 	 A 	 c ha n g e 	 i n 	 s p e n d i n g	
priorities by the current or a future Government could materially impact the Group.  
•	 E c o n o m i c	–	e l e m e n t s	o f	t h e	r e c r u i t m e n t	a r e a	o f	t h e	b u s i n e s s	a c t i v i t y	c o u l d	b e	a d v e r s e l y		
affected by a slowdown in the economic environment.  However, some recruitment  
revenue streams may also benefit by such a slowdown. The software area of the business  
could be adversely affected if the government reduces the grants to local authorities  
in an economic downturn. However, all indications are that the government will 
maintain and may increase the grants during such a period. The Group has increased  
diversification through acquisitions to mitigate against economic risks.
•	 C o m p e t i t o r s	–	t h e	G r o u p	h a s	a	n u m b e r	o f	c o m p e t i t o r s	f o r	i t s	s o f t w a r e	p r o d u c t s .	T o		
mitigate this risk, the Group continues to invest in and develop its software.  14 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
D i r e c t o r s’	R e p o r t	c o n t ’ d
k ey	p e r f o r m a n c e	i n d i c a t o r s	      
Key financial performance indicators, including the management of profitability and 
working capital, monitored on an ongoing basis by management are set out below:
Indicator 2008 2007 Measure
t u r n o v e r	( £ 0 0 0 ) 34,034 20,625
P r o fi t a b i l i t y	ra t i o s
Gross margin 79% 74% Gross profit as a percentage of turnover 
EBITDA margin 25% 14% Profit before interest, tax, depreciation, and 
amortisation as a percentage of turnover
l i q u i d i t y	r a t i o
Current ratio 1.01 1.20 Current assets divided by current liabilities
Other indicator
Debtors days 67.82 103.19 Year end trade debtors divided by turnover, 
multiplied by 365 days
N o n - fi n a n c i a l	
indicators
Quality Management The IDOX group operates a quality policy that has been accredited to 
ISO 9001:2000 for the development and sale of products for document, 
content and information management, providing innovative e-government 
and e-business solutions that allow the delivery of information to the citizen 
and customers across the internet, extranet or intranet.
Environmental 
Management
The IDOX group operates an environmental management system 
that has been assessed and approved to accredited to BS EN ISO 
14001:2004, the approved systems applying to the following: 
the development and sale of products for document, content and 
information management, providing innovative e-government and 
e-business solutions that allow the delivery of information to the citizen 
and customers across the internet, extranet or intranet.
D i s c l o s u r e	o f	i n f o r m a t i o n	t o	a u d i t o r s
In the case of each of the persons who were Directors of the Company at the date when this 
report was approved:
•	 s o	f a r	a s	t h e	d i r e c t o r	i s	a w a r e ,	t h e r e	i s	n o	r e l e v a n t	a u d i t	i n f o r m a t i o n	o f	w h i c h	t h e		
company’s auditors are unaware
•	 h e	h a s	t a k e n	a ll	s t e p s	h e	o u g h t	t o	h a v e	t a k e n	a s	a	d i r e c t o r	i n	o r d e r	t o	m a k e	h i m s e l f		
aware of any relevant audit information and to establish that the company’s auditors are  
aware of that information.
a u d i t o r s
A resolution to reappoint Grant Thornton UK LLP as auditors and to authorise the Directors 
to agree their remuneration will be placed before the forthcoming Annual General Meeting 
of the Company.
B y	o r d e r	o f	t h e	B o a r d        R e g i s t e r e d	o f fi c e
John McNicol           2nd Floor, 
Company Secretary         160 Queen Victoria Street
22 January 2009          London, EC4V 4BF 15 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
R e p o r t	o n	R e m u n e r a t i o n
R e m u n e r a t i o n	c o m m i t t e e
The Remuneration Committee operates within defined terms of reference. The 
Remuneration Committee comprises the Chairman and two Non-Executive Directors. It is 
chaired by Christopher Wright.
R e m u n e r a t i o n	p o l i c y
The policy of the Group is to set levels of remuneration to attract, retain and motivate 
Executive Directors and key staff.  The packages are designed to be competitive in value 
to those offered to the Directors of similar sized public companies in related sectors. It is 
the Board’s policy also to align the interests of managers with those of our shareholders in 
the grant of option and other equity rewards which underlying securities grantees are very 
much encouraged to retain over the longer term.
The components of the Executive Directors’ remuneration packages are currently a basic 
salary, bonus, money purchase pension contributions and benefits in kind.  The benefits 
include car allowance, private medical cover, life cover and critical illness cover.  The bonus 
elements are dependent on the Executive Directors achieving performance criteria set out 
by the Remuneration Committee.  The criteria include targets for turnover and profits as 
well as for cash balances.  In addition, the Group has introduced new share option schemes 
for the Executive Directors.  
D i r e c t o r s ’	r e m u n e r a t i o n
Salary Benefits Bonus
Compensation 
for loss of 
office Total 2008 Total 2007
Pension 
2008
Pension 
2007
£000 £000 £000 £000 £000 £000 £000 £000
E x e c u t i v e	D i r e c t o r s
Martin Brooks 
1
95 - 35 - 130 227 - -
Richard Kellett-Clarke 169 10 130 - 309 244 4 -
William Edmondson 
2
12 1 - - 13 - -
Steve Ainsworth 
3
13 - - 120 133 67
N o n	E x e c u t i v e	
D ir e c t o r s
-
Christopher Wright 21 - - - 21 16 - -
Peter Lilley 21 - - - 21 16 - -
John Wisbey 
4
8 - - - 8 16 - -
Nigel Oxbrow 
5
6 - - - 6 16 - -
345 11 165 120 641 602 4 -
1
 Chairman
2
 appointed 29 September 2008
3
 appointed 7 June 2007 and resigned 16 November 2007
4
 resigned 28 February 2008
5
 resigned 28 February 2008
The amounts in respect of pension represent money purchase pension contributions. 16 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
R e p o r t	o n	R e m u n e r a t i o n	c o n t ’ d
N o n - e x e c u t i v e	d i r e c t o r s
The Board, based on a recommendation by the Chairman of the Remuneration Committee 
or, in the case of the Chairman, the remainder of the Board, determines the remuneration 
of the Non-Executive Directors.  The Non-Executive Directors are not eligible to join the 
pension scheme.  
S e r v i c e	c o n t r a c t s
The Executive Directors have entered into service contracts with the Group that are 
terminable by either party on not less than six months prior notice. 
S h a r e	o p t i o n s
The Directors believe it is important to incentivise key management and employees.  
The following options have been granted to the Directors over ordinary 1p shares in the Company:
Director
At start
of year
Granted 
during 
the year Exercised Lapsed
At end
of year
Exercise 
price
Exercise date 
From
Exercise date 
To
Richard Kellett- Clarke 2,250,000 - - - 2,250,000 6.50p Feb 2007 Oct 2011
Richard Kellett- Clarke 2,250,000 - - - 2,250,000 9p Feb 2007 Oct 2014
Richard Kellett-Clarke - 275,000 - - 275,000 15p Dec 2007 Aug 2010
Richard Kellett-Clarke - 769,231 - - 769,231 13p Aug 2008 May 2013
Richard Kellett-Clarke - 666,667 - - 666,667 15p Aug 2008 May 2013
Martin Brooks 2,250,000 - - - 2,250,000 6.50p Feb 2007 Oct 2011
Martin Brooks 2,250,000 - - - 2,250,000 9p Feb 2007 Oct 2014
Martin Brooks - 275,000 - - 275,000 15p Dec 2007 Aug 2010
Martin Brooks - 423,077 - - 423,077 13p Aug 2008 May 2013
Martin Brooks - 366,667 - - 366,667 15p Aug 2008 May 2013
Steve Ainsworth 1,230,769 - 1,230,769 - - 8.125p Jun 2007 Dec 2007
Steve Ainsworth 1,019,231 - - 1,019,231 - 8.125p Jun 2007 Apr 2008
Steve Ainsworth 2,250,000 - - 2,250,000 - 11.125p Jun 2007 Apr 2008
Totals 13,500,000 2,775,642 1,230,769 3,269,231 11,775,642
The mid market price of the Company’s shares at close of business on 31 October 2008 was 
9.37p and the high and low share prices during the year were 8.75p and 14.75p respectively.
D i r e c t o r s ’	s h a r e	i n t e r e s t s
The Directors’ shareholdings in the Company are listed in the Directors’ Report on page 11. 17 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
C o r p o r a t e	G o v e r n a n c e	R e p o r t
C o r p o r a t e	g o v e r n a n c e	
The Group is committed to applying the 
highest principles of corporate governance 
commensurate with its size. The Group has 
adopted the Quoted Company Alliance 
(QCA) Corporate Governance Guidelines 
for AIM Companies as published in July 
2005. The Group complies with the QCA 
Corporate Governance Guidelines except 
whereby:
 
•	 t h e	B o a r d	d o e s	n o t	c u r r e n t l y	u n d e r t a k e	
performance evaluation of the Board, 
its committees, and its individual 
directors
•	 t h e	B o a r d	h a s	n o t	d i s c l o s e d	t h e	
number of Board meetings and of the 
Committees and individual Directors’    
attendance at them.
Internal controls
The Board takes responsibility for 
establishing and maintaining reliable 
systems of control in all areas of operation. 
These systems of control, especially 
of financial control, can only provide 
reasonable, but not absolute, assurance 
against material misstatement or loss. 
The key matters relating to the system of 
internal control are set out below:
•	 I D O X	p l c	h a s	e s t a b li s h e d	a n	o p e ra t i o n a l	 	 	 	 	 	
management structure with clearly    
defined responsibilities and regular   
performance reviews
•	 t h e	G r o u p	o p e ra t e s	a	c o m p r e h e n s i v e	
system for reporting financial and 
non-financial information to the Board 
including preparation and review of   
strategy plans and the preparation and 
review of annual budgets
•	 fi n a n c i a l	r e s u l t s	a r e	m o n i t o r e d	
against  budgets, forecasts and other 
performance indicators with action 
dictated accordingly at each meeting
•	 a	s t r u c t u r e d	a p p r o v a l	p r o c e s s	b a s e d	o n	
assessment of risk and value delivered
•	 s u f fi c i e n t	r e s o u r c e	i s	f o c u s e d	t o	
maintain and develop internal control 
procedures and information systems, 
especially in financial management.
The Board considers that there have been 
no substantial weaknesses in internal 
financial controls that have resulted in 
any material losses, contingencies or 
uncertainties which need to be disclosed in 
the accounts.
The Board has considered the need for 
an internal audit function and concluded 
that there is no current need for such a 
function within the Group. In the absence 
of a dedicated function, one member of 
staff has undergone internal audit training 
and ad hoc internal audit projects have 
been carried out cross-departmentally 
during the year. Furthermore in 
compliance with the Group’s quality 
standards, additional internal reviews are 
carried out. 
Following publication of Internal Control: 
Guidance for Directors on the Combined 
Code (the “Turnbull Guidance”), the Board 
confirms that there is an ongoing process 
for identifying, evaluating and managing 
the significant risks faced by the Group, 
and that this process has been in place 
for the year under review and up to the 
date of approval of the Annual Report 
and Accounts. This process is regularly 
reviewed by the Board and is consistent 
with the Turnbull Guidance. 
S t a t e m e n t	o f	d i r e c t o r s ’	r e s p o n s i b i l i t i e s
Company law in the United Kingdom 
requires the Directors to prepare financial 
statements for each financial year which 
give a true and fair view of the state of 
affairs of the Company and the Group 
and of the profit or loss of the Group for 
that period.  In preparing those financial 
statements, the Directors are required to:
•	 s e l e c t	s u i t a b l e	a c c o u n t i n g	p o li c i e s	a n d	
then apply them consistently
•	 m a k e	j u d g e m e n t s	a n d	e s t i m a t e s	t h a t	
are reasonable and prudent
•	 s t a t e	w h e t h e r	a p p li c a b l e	U K	a c c o u n t i n g	
standards have been followed, 
subject to any material departures 
disclosed and explained in the financial 
statements
•	 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, for 
safeguarding the assets of the Group 
and for taking reasonable steps for the 
prevention and detection of fraud and 
other irregularities. 
The Directors are responsible for ensuring 
that the Directors’ Report and other 
information included in the Annual Report 
is prepared in accordance with United 
Kingdom company law. They are also 
responsible for ensuring that the Annual 
Report includes information required by 
the AIM Market Rules. 
The maintenance and integrity of the 
Group’s web site is the responsibility of 
the Directors; the work carried out by the 
auditors does not involve consideration 
of these matters and, accordingly, the 
auditors accept no responsibility for any 
changes that may have occurred to the 
information contained in the accounts 
since they were initially presented on the 
web site. 
Legislation in the United Kingdom 
governing the preparation and the 
dissemination of the accounts and other 
information included in annual reports 
may differ from legislation in other 
jurisdictions.  18 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
C o r p o r a t e	G o v e r n a n c e	R e p o r t	c o n t ’ d
a c c o u n t i n g	p o l i c i e s
The Board considers the appropriateness 
of its accounting policies on an annual 
basis. The Board believes that its 
accounting policies are appropriate 
in particular in relation to income 
recognition, research and development 
and deferred expenses.
B o a r d	o f	d i r e c t o r s
The Board, comprising the Chairman, 
the Chief Executive Officer, the Chief 
Finance Officer and two Non-Executive 
Directors, is responsible for the overall 
strategy and direction of IDOX plc as well 
as for approving potential acquisitions, 
major capital expenditure items and 
financing matters. The Board has a 
formal schedule of business reserved 
to it and meets regularly during the 
year. The Board is supplied in a timely 
manner with information in a form and 
of a suitable quality appropriate to 
enable it to discharge its duties. Advice 
from independent sources is available if 
required. The Board monitors exposure to 
key business risks and reviews the strategic 
direction of the Group, the annual budgets 
as well as their progress against those budgets.
The Board members and their roles are 
described on page 10.  In accordance with 
the Company’s Articles of Association, 
one third of the Directors are required to 
retire by rotation at the Annual General 
Meeting.
S h a r e h o l d e r	r e l a t i o n s
IDOX plc is committed to open 
communication with all its shareholders. 
The Directors hold regular meetings 
with institutional shareholders to discuss 
and review the Group’s activities and 
objectives. Communication with private 
shareholders is principally through 
the Annual General Meeting, where 
participation is encouraged and where 
the Board is available to answer questions. 
IDOX plc maintains up-to-date information 
on the Investor Relations section of its 
website  www.IDOXplc.com.
Every shareholder is sent a full annual 
report each year end and at the half year 
end they are sent an interim report. Care 
is taken to ensure that any price sensitive 
information is released to all shareholders, 
institutional and private, at the same time 
in accordance with London Stock Exchange 
requirements. 
IDOX plc strives to give a full, timely and 
realistic assessment of its business in a 
balanced way, in all price-sensitive reports 
and presentations. 
The Group has adopted the Quoted 
Company Alliance (QCA) suggested 
terms of reference for the various Board 
committees as set out by the QCA.
t h e	a u d i t	C o m m i t t e e
The Audit Committee is chaired by Peter 
Lilley and includes Christopher Wright. 
The Report of the Audit Committee can be 
found on page 19.
t h e	N o m i n a t i o n	C o m m i t t e e
The Nomination Committee is chaired 
by Peter Lilley and comprises all Non-
Executive Directors. 
t h e	R e m u n e r a t i o n	C o m m i t t e e
The Remuneration Committee is chaired 
by Christopher Wright and includes Peter 
Lilley.  This Committee determines the 
remuneration and benefits packages for 
the Executive Directors and any changes 
to the service contracts. The Committee 
also approves any share related incentive 
schemes within the Group. 
G o i n g	c o n c e r n
The Directors have reviewed the Group’s 
budget and cash flows for 2009 in the 
context of the Group’s banking facilities 
and covenants, the level of recurring 
revenue within the business, the outlook 
for our chosen markets, and our current 
working capital resources, and are satisfied 
that it is appropriate to prepare accounts 
on a going concern basis. 19 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
R e p o r t	o f	t h e	a u d i t	C o m m i t t e e
M e m b e r s h i p	a n d	m e e t i n g s
The Audit Committee is a committee 
of the Board and is comprised of two 
Non-Executive Directors; Peter Lilley and 
Christopher Wright.  
The Audit Committee invites the Executive 
Directors, the external auditors and other 
senior managers to attend its meetings as 
appropriate. The Company Secretary is also 
the Secretary of the Audit Committee.
The Audit Committee is considered to have 
sufficient, recent and relevant financial 
experience to discharge its functions.
During the period under review, the Audit 
Committee met 3 times.
R o l e, 	 res po ns i bi l i ti es 	 a nd 	 t e r ms 	 o f 	 re f e ren c e
The Audit Committee’s role is to assist 
the Board in the effective discharge of its 
responsibilities for financial reporting and 
internal control.
The Audit Committee’s responsibilities 
include:
•	 t o	r e v i e w	t h e	i n t e g r i t y	o f	t h e	a n n u a l		
and interim financial statements of  the 
Group ensuring they comply with legal 
requirements, accounting  standards 
and AIM rules, and any other formal 
announcements relating to the Group’s 
financial performance 
•	 t o	r e v i e w	t h e	G r o u p ’ s	i n t e r n a l	fi n a n c i a l	
control and risk management systems
•	 m o n i t o r	 a n d	 r e v i e w	 t h e	 r e q u i r e m e n t	 f o r	
an internal audit function
•	 t o	r e v i e w	t h e	a r ra n g e m e n t s	f o r	s t a f f	t o	
whistle-blow on financial reporting and 
other matters
•	 s a f e g u a r d	t h e	a u d i t o r ’ s	o b j e c t i v i t y	a n d	
independence when non-audit services 
are provided
•	 o v e r s e e	t h e	r e l a t i o n s h i p	w i t h	t h e	
external auditor, including approval of  
their remuneration, agreeing the scope     
of the audit engagement, assessing                       
their independence, monitoring the 
provision of non-audit services, and 
considering their reports on the Group’s 
financial statements.
The Audit Committee operates within 
agreed terms of reference, which can be 
found on the Company’s website.
I n d e p e n d e n c e	o f	e x t e r n a l	a u d i t o r s
The Committee keeps under review the 
relationship with the external auditors 
including:
•	 t h e	i n d e p e n d e n c e	a n d	o b j e c t i v i t y	
of the external auditors, taking into 
account the relevant UK professional 
and regulatory requirements and 
the relationship with the auditor as a 
whole, including the provision of the 
non-audit services
•	 t h e	c o n s i d e ra t i o n	o f	a u d i t	f e e s	a n d	a n y	
fees for non-audit services.
The Audit Committee develops and 
recommends to the Board the Group’s 
policy in relation to the provision of non-
audit services by the auditors, and ensures 
that the provision of such services does not 
impair the external auditor independence.
P e t e r	l i l l ey
Chairman of the Audit Committee
22 January 2009 20 IDOX plc Annual Report and Accounts 2008
R e p o r t	o f	t h e	I n d e p e n d e n t	a u d i t o r s
t o	t h e	m e m b e r s	o f	ID O X	p l c
We have audited the group financial 
statements of IDOX plc for the year 
ended 31 October 2008 which comprise 
the accounting policies, the consolidated 
income statement, the consolidated 
balance sheet, the consolidated cash flow 
statement, the consolidated statement of 
changes in equity and notes 1 to 28. These 
group financial statements have been 
prepared under the accounting policies set 
out therein. 
We have reported separately on the parent 
company financial statements of IDOX plc 
for the year ended 31 October 2008. 
This report is made solely to the company’s 
members, as a body, in accordance with 
Section 235 of the Companies Act 1985. 
Our audit work has been undertaken so 
that we might state to the company’s 
members those matters we are required 
to state to them in an auditor’s report and 
for no other purpose. To the fullest extent 
permitted by law, we do not accept or 
assume responsibility to anyone other than 
the company and the company’s members 
as a body, for our audit work, for this 
report, or for the opinions we have formed. 
R e s p e c t i v e	r e s p o n s i b i l i t i e s	o f	d i r e c t o r s	
a n d	a u d i t o r s
The directors’ responsibilities for preparing 
the Annual Report and the group financial 
statements in accordance with United 
Kingdom law and International Financial 
Reporting Standards (IFRSs) as adopted 
by the European Union are set out in the 
Statement of Directors’ Responsibilities.
Our responsibility is to audit the group 
financial statements in accordance with 
relevant legal and regulatory requirements 
and International Standards on Auditing 
(UK and Ireland).
We report to you our opinion as to 
whether the group financial statements 
give a true and fair view and whether 
the group financial statements have 
been properly prepared in accordance 
with the Companies Act 1985. We also 
report to you whether in our opinion the 
information given in the Directors’ Report 
is consistent with the financial statements.  
The information given in the Directors’ 
Report includes that specific information 
presented in the Chairman’s Statement 
and Chief Executive’s Report that is cross 
referred from the Business Review section 
of the Directors’ Report.
In addition we report to you if, in our 
opinion, we have not received all the 
information and explanations we require 
for our audit, or if information specified by 
law regarding directors’ remuneration and 
other transactions is not disclosed. 
We read other information contained 
in the Annual Report and consider 
whether it is consistent with the audited 
group financial statements. The other 
information comprises only Chairman’s 
Statement, Chief Executive’s Report, 
the Chief Financial Officer’s Report, the 
Directors’ Report, the Remuneration 
Report, the Corporate Governance 
Report, and the Report of the Audit 
Committee.  We consider the implications 
for our report if we become aware of 
any apparent misstatements or material 
inconsistencies with the group financial 
statements. Our responsibilities do not 
extend to any other information.
B a s i s	o f	a u d i t	o p i n i o n
We conducted our audit in accordance 
with International Standards on Auditing 
(UK and Ireland) issued by the Auditing 
Practices Board. An audit includes 
examination, on a test basis, of evidence 
relevant to the amounts and disclosures 
in the group financial statements. It also 
includes an assessment of the significant 
estimates and judgments made by the 
directors in the preparation of the group 
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 group financial 
statements are free from material 
misstatement, whether caused by fraud 
or other irregularity or error. In forming 
our opinion we also evaluated the 
overall adequacy of the presentation 
of information in the group financial 
statements.
Opinion
In our opinion:
•	 t h e	g r o u p	fi n a n c i a l	s t a t e m e n t s	g i v e	a	
true and fair view, in accordance with 
IFRSs as adopted by the European 
Union, of the state of the group’s 
affairs as at 31 October 2008 and of its 
profit for the year then ended;
•	 t h e	g r o u p	fi n a n c i a l	s t a t e m e n t s	h a v e	
been properly prepared in accordance 
with the Companies Act 1985 and; 
•	 t h e	i n f o r m a t i o n	g i v e n	i n	t h e	D i r e c t o r s ’	
Report is consistent with the financial 
statements.
S e p a r a t e	o p i n i o n	i n	r e l a t i o n	t o	I F R S s
As explained in Note 1 to the group 
financial statements, the group in addition 
to complying with its legal obligation 
to comply with IFRSs as adopted by the 
European Union, has also complied with 
the IFRSs as issued by the International 
Accounting Standards Board.
In our opinion the group financial 
statements give a true and fair view, in 
accordance with IFRSs, of the state of the 
group’s affairs as at 31 October 2008 and 
of its profit for the year then ended.
G R a N t	t h O R N t O N	u k	l l P 
REGISTERED AUDITOR 
CHARTERED ACCOUNTANTS
LONDON 21 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
C o n s o l i d a t e d	I n c o m e	S t a t e m e n t
Note 2008 2007
£000 £000
R ev e n u e 2 34,034 20,625
External charges (7,017) (5,435)
27,017 15,190
Staff costs 4 (14,745) (8,639)
Other operating charges (3,697) (3,710)
8,575 2,841
Depreciation (340) (342)
Amortisation (920) (362)
Share option costs (108) (359)
O p e r a t i n g	p r o fi t	 3 7,207 1,778
Finance income 263 336
Finance costs (901) (318)
P r o fi t	b e f o r e	t a x a t i o n	 6,569 1,796
Income tax expense 7 (1,785) (109)
P r o fi t	f o r	t h e	y e a r 4,784 1,687
E a r n i n g s	p e r	s h a r e
Basic 8 1.40p 0.63p
Diluted 8 1.38p 0.63p
The accompanying accounting policies and notes form an integral part of these financial statements. 22 IDOX plc Annual Report and Accounts 2008
C o n s o l i d a t e d	Ba l a n c e	S h e e t
At 31 October 2008
Note 2008 2007
£000 £000
a s s e t s
N o n - c u r r e n t	a s s e t s
Property, plant and equipment 9 500 513
Intangible assets 10 31,887 27,722
Deferred tax assets 18 265 651
t o t a l	n o n - c u r r e n t	a s s e t s 32,652 28,886
C u r r e n t	a s s e t s
Trade and other receivables 13 8,276 6,963
Cash and cash equivalents 12 7,688 8,927
t o t a l	c u r r e n t	a s s e t s 15,964 15,890
t o t a l	a s s e t s 48,616 44,776
l i a b ilit i e s
C u r r e n t	l i a b i l i t i e s
Trade and other payables 14 2,845 5,167
Other liabilities 15 8,113 6,220
Provisions 16 370 574
Current tax 1,086 581
Deferred tax liabilities 18 250 202
Derivative financial instruments 19 96 -
Borrowings 17 1,000 1,000
t o t a l	c u r r e n t	l i a b i l i t i e s 13,760 13,744
N o n - c u r r e n t	l i a b i l i t i e s
Trade and other payables 14 422 619
Deferred tax liabilities 18 3,292 3,112
Borrowings 17 5,696 6,611
t o t a l	n o n - c u r r e n t	l i a b i l i t i e s 9,410 10,342
t o t a l	l i a b i l i t i e s 23,170 24,086
N e t	a s s e t s 25,446 20,690 23 IDOX plc Annual Report and Accounts 2008
C o n s o l i d a t e d	Ba l a n c e	S h e e t	c o n t ’ d
At 31 October 2008
Note 2008 2007
£000 £000
C a p i t a l	a n d	r e s e r v e s
Called up share capital 21 3,442 3,420
Capital redemption reserve 1,112 1,112
Share premium account 9,883 9,706
Share options reserve 364 359
Merger reserve 1,294 1,294
ESOP trust (96) (104)
Retained earnings 9,447 4,903
t o t a l	e q u i t y 25,446 20,690
The accounts were approved by the Board of Directors and authorised for issue on 22 January 2009 and are signed on its behalf by:
M a r t i n	B r o o k s	 	 	 	 	 	 	 	 	 	 	 	 	 	 R i c h a r d	k e l l e t t - C l a r k e
Chairman                             Chief Executive  
The accompanying accounting policies and notes form an integral part of these financial statements. 24 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
C o n s o l i d a t e d	S t a t e m e n t	o f	C h a n g e s	i n	E q u i t y
Called up 
share capital
Capital 
redemption
reserve
Share
premium
account
Merger 
reserve
Share
option 
reserve
ESOP
trust
Retained 
earnings
 Total
£000 £000 £000 £000 £000 £000 £000 £000
t h e	g r o u p
a t	1	N o v e m b e r	2 0 0 6 1,953 1,112 820 1,294 - (96) 3,324 8,407
Profit for the year - - - - - - 1,687 1,687
Total recognised income and 
expense for the year
- - - - - - 1,687 1,687
Issue of share capital 1,467 - 9,533 - - - - 11,000
Share issue costs - - (647) - - - - (647)
Share options granted - - - - 359 - - 359
Equity dividends paid - - - - - - (108) (108)
ESOP trust - - - - - (8) - (8)
a t	3 1	O c t o b e r	2 0 0 7 3,420 1,112 9,706 1,294 359 (104) 4,903 20,690
Profit for the year - - - - - - 4,784 4,784
Total recognised income and 
expense for the year
- - - - - - 4,784 4,784
Issue of share capital 22 - 177 - - - - 199
Transfer on exercise of 
share options
- - - - (103) - 103 -
Share options grants - - - - 108 - - 108
Equity dividends paid - - - - - - (343) (343)
ESOP trust - - - - - 8 - 8
a t	3 1	O c t o b e r	2 0 0 8 3,442 1,112 9,883 1,294 364 (96) 9,447 25,446
   25 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
C o n s o l i d a t e d	C a s h	F l o w	S t a t e m e n t	
2008 2007
£000 £000
C a s h	fl o w s	f r o m	o p e r a t i n g	a c t i v i t i e s 
Profit before taxation 6,569 1,796
Adjustments for:
Depreciation 340 342
Amortisation 920 362
Impairment - 400
Finance income (263) (336)
Finance costs 816 282
Debt issue costs amortisation 85 36
Share option costs 108 359
Movement in receivables (538) (160)
Movement in payables (1,830) (3,189)
C a s h	g e n e r a t e d	b y	o p e r a t i o n s 6,207 (108)
Tax on profit paid (1,280) -
N e t	c a s h	f r o m	o p e r a t i n g	a c t i v i t i e s 4,927 (108)
C a s h	fl o w s	f r o m	i n v e s t i n g	a c t i v i t i e s
Acquisition of subsidiary net of cash acquired (3,833) (13,305)
Purchase of property, plant & equipment (291) (320)
Purchase of intangible fixed assets (353) -
Interest received 263 336
N e t	c a s h	u s e d	i n	i n v e s t i n g	a c t i v i t i e s (4,214) (13,289)
C a s h	fl o w s	f r o m	fi n a n c i n g	a c t i v i t i e s
Proceeds from issue of share capital 199 11,000
Debt issue costs - (425)
Share issue costs paid - (647)
Interest paid (816) (318)
Proceeds from long-term borrowing - 8,000
Loan repayments (1,000) -
Equity dividends paid (343) (108)
Sale/(purchase) of own shares 8 (8)
N e t	c a s h	fl o w s	f r o m	fi n a n c i n g	a c t i v i t i e s (1,952) 17,494
N e t	m o v e m e n t	o n	c a s h	a n d	c a s h	e q u i v a l e n t s (1,239) 4,097
Cash and cash equivalents at the beginning of the period 8,927 4,830
Cash and cash equivalents at the end of the period 7,688 8,927
The accompanying accounting policies and notes form an integral part of these financial statements. 26 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
N o t e s	t o	t h e	a c c o u n t s
1 	a C CO u N t I N G 	 P O l I C I E S
G e n e r a l	I n f o r m a t i o n
IDOX plc is a leading supplier of software and services for the management of local government and other organizations.
The company is a public limited company which is listed on the London Stock Exchange and is incorporated and domiciled in the UK. The 
address of its registered office is 160 Queen Victoria Street, London, EC4V 4BF. The registered number of the company is 03984070.
B a s i s	o f	p r e p a r a t i o n
These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the 
International Accounting Standards Board, and adopted by the European Union (EU) and the Companies Act 1985 applicable to companies 
reporting under IFRS.  The financial statements for the year ended 31 October 2007 were prepared under UK GAAP.  The current year 
financial statements therefore present restated comparative figures.  The disclosures required by IFRS 1 concerning the transition from UK 
GAAP to IFRS are given in note 28.  
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain financial assets 
and liabilities, being derivative financial instruments carried at fair value through profit or loss.
As set out on page 18 of the Corporate Governance Report, the accounts have been prepared on a going concern basis.
S t a n d a r d s	a d o p t e d	e a r l y	b y	t h e	G r o u p
The Group has elected to adopt IFRS 8 Operating Segments early.  This standard replaces IAS 14 Segment Reporting and aligns segment 
reporting with the requirements of the US standard SFAS 131, Disclosures about segments of an enterprise and related information.  The 
new standard requires a ‘management approach’, under which segment information is presented on the same basis as that used for internal 
reporting purposes.
I n t e r n a t i o n a l	F i n a n c i a l	R e p o r t i n g	S t a n d a r d s	a n d	I n t e r p r e t a t i o n s	i s s u e d	b u t	n o t	y e t	e f f e c t i v e
At the date of authorisation of these financial statements, certain new standards, amendments and interpretations to existing standards 
have been published that are mandatory for forthcoming financial periods, but which the Group has not adopted early.  Those which are 
considered relevant to the Group’s operations are as follows:
•	 I A S	1	P r e s e n t a t i o n	o f	fi n a n c i a l	s t a t e m e n t s	–	R e v i s i o n .	A m e n d m e n t s	t o	t h e	s t a n d a r d	i n c l u d e	c h a n g e s	t o	t i t l e s	o f	s o m e	o f	t h e	fi n a n c i a l	
statements and presentational changes to the components of the financial statements.  The revision is effective for periods commencing 
on or after 1 January 2009.
•	 I A S	2 3	B o r r o w i n g	C o s t s	–	R e v i s i o n .		T h i s	r e v i s i o n	e li m i n a t e s	t h e	o p t i o n	t o	e x p e n s e	b o r r o w i n g	c o s t s	t o	t h e	i n c o m e	s t a t e m e n t	a s	i n c u r r e d	
and is effective for periods commencing on or after 1 January 2009.
•	 I A S	2 7	C o n s o li d a t e d	a n d	s e p a ra t e	fi n a n c i a l	s t a t e m e n t s	–	R e v i s i o n .		T h e	m a i n	a m e n d m e n t s	r e l a t e	t o	t h e	a c c o u n t i n g	f o r	m i n o r i t y	i n t e r e s t s	
and the loss of control of a subsidiary.  The revision is effective for periods commencing on or after 1 July 2009.
•	 I F R S	2	S h a r e	b a s e d	p a y m e n t	–	R e v i s i o n .		T h e	a m e n d m e n t	r e d e fi n e s	v e s t i n g	c o n d i t i o n s	a n d	c l a r i fi e s	t h e	a c c o u n t i n g	t r e a t m e n t	i n	r e s p e c t	o f	
cancellations and non-vesting conditions.  The revision is effective for periods commencing on or after 1 January 2009.
•	 I F R S	3	B u s i n e s s	c o m b i n a t i o n s	–	R e v i s i o n .		T h i s	w ill	b r i n g	c h a n g e s	t o ,	t h e	a c c o u n t i n g	f o r	g o o d w ill ,	t h e	c o s t	o f	b u s i n e s s	c o m b i n a t i o n s	a n d	t h e	
accounting for business combinations achieved in stages.  The revision is effective for periods commencing on or after 1 July 2009.
•	 I F R I C s	1 2 ,	1 3 ,	1 4	a n d	1 5	a r e	a l s o	c o m i n g	i n	t o	i s s u e	a n d	w ill	b e	e f f e c t i v e	f r o m	1	J a n u a r y	2 0 0 8 ,	1	J u l y	2 0 0 8 ,	1	J a n u a r y	2 0 0 8	a n d	1	J a n u a r y	
2009 respectively.  The issue of these IFRICs is not expected to have an impact on future financial statements.
The directors anticipate that the adoption of these Standards and Interpretations will have no marked impact on the financial statements 
when they come into effect, other than in relation to IAS1 Presentation of financial statements which will lead to presentation and disclosure 
amendments. 27 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
C r i t i c a l	a c c o u n t i n g	e s t i m a t e s	a n d	j u d g e m e n t s
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of 
future events that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future.  The resulting accounting estimates and assumptions will, by definition, 
seldom equal the related actual results.  The Group has evaluated the estimates and assumptions that have been made in relation to the 
carrying amounts of assets and liabilities in these financial statements.  The estimates and assumptions which have the most significant 
impact on the accounts which are recognised in the financial statements are as follows:
(i) CAPS
Certain fair value adjustments, accruals and provisions were originally made as part of the initial accounting for the CAPS acquisition. The 
Group has been successful in resolving these matters within original estimates.  As such resolution occurred outside the period in which IFRS 3 
would permit the initial accounting to be adjusted, £0.6m has been released through the income statement in the current year.
(ii) Intangible assets
The Group recognises intangible assets acquired as part of business combinations at fair value at the date of acquisition.  The determination 
of these fair values is based upon management’s judgement and includes assumptions on the timing and amount of future incremental cash 
flows generated by the assets and selection of an appropriate cost of capital.  Furthermore, management must estimate the expected useful 
lives of intangible assets and charge amortisation on those assets accordingly.  In determining the useful economic life of the intangible 
software assets, management has given consideration to the length of time that its own software is typically used within its market.  In 
addition, management reviewed competitor products and the length of time they had also been in use.
Consideration was also given as to the likelihood that a new competitor could enter the market with a new product.  This was considered 
unlikely due to the up-front capital investment which would be required to develop a new product, the requirement for reference sites to 
demonstrate the product, and the long life cycles which products have in the market.
(iii) Impairment of goodwill
The Group is required to test, at least annually, whether goodwill has suffered any impairment.  The recoverable amount is determined based 
upon value-in-use calculations. The use of this method requires the estimation of future cash flows and the choice of a suitable discount rate 
in order to calculate the present value of these cash flows.  Actual outcomes could vary.
Estimation uncertainty over future operating cash flows arises in particular in relation to the assessment of the recoverable amount of TFPL’s 
goodwill.  Value in use calculations assume the recoverable amount is £3.1m which is £0.6m higher than the carrying value of goodwill.  Were 
related operating cash flows that underlie the value in use calculations, to fall by more than £70,000, an impairment loss would arise. The 
assessed value in use of £3.1m is based upon a gross margin of 40%. A change in this margin of 2% or greater would lead to an impairment 
loss arising.
(iv) Revenue recognition
The group recognises revenue on certain contracts such as work in progress, prior to an invoice being raised, where work has been completed 
and there is a high degree of certainty of the contract being completed and the invoice raised and cash received.
B a s i s	o f	c o n s o l i d a t i o n
The Group accounts consolidate the accounts of the Company and its subsidiary undertakings drawn up to 31 October each year.  Subsidiaries 
are those entities over which the Group has the power to control the financial and operating policies.  Over all its subsidiaries, IDOX plc 
obtains and exercises control through 100% of the voting rights.
The Group elected not to apply IFRS 3 Business Combinations retrospectively to business combinations prior to 1 November 2006.  
Accordingly the classification of the combination (acquisition, reverse acquisition or merger) remains unchanged from that used under UK 
GAAP.   28 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
Assets and liabilities are recognised at the date of transition if they would be recognised under IFRS, and are measured using their UK GAAP 
carrying amount immediately post-acquisition as deemed cost under IFRS, unless IFRS requires fair value measurement. Deferred tax is 
adjusted for the impact of any consequential adjustments after taking advantage of the transitional provisions.
All inter-company transactions are eliminated on consolidation. 
The presentational currency of the group is £GBP sterling.
R ev e n u e
Revenue represents the amounts receivable in respect of goods and services provided during the year, stated net of value added tax.  Where 
work has been done, but a billing milestone has not been reached, the income has been accrued and included in amounts recoverable within 
trade and other receivables. 
Revenue is measured at the fair value of the right to consideration. The Group derives its revenue streams from software solutions, 
information solutions and recruitment services.  
IDOX software products revenue is recognised in stages based on contract signing, delivery, configuration and client acceptance. For 
small value orders, the whole invoice amount is recognised at the billing point. For larger value orders, revenue is reviewed to see if the 
appropriate amount of work has been completed. For the largest orders, the amount is revenue recognised is dependent on the percentage 
of completion of the Group’s contractual obligations.   Maintenance revenue is spread over the period of the agreement, which is typically 
one year.  
Revenue derived from information solutions content is recognised over the life of the subscription, which is typically one year.  Revenue from 
projects is recognised over the life of the project in accordance with the stage of completion.  Revenue from managed services is recognised 
on a usage basis as the service is performed.
Recruitment revenue from permanent placements is recognised in the month when the placement starts.  Revenue from contract recruitment 
is recognised as the service is performed.
C o n t r a c t	r e v e n u e
The amount of profit attributable to the stage of completion of a long term contract is recognised only when the outcome of the contract 
can be foreseen with reasonable certainty. Revenue for such contracts is stated at the cost appropriate to their stage of completion plus 
attributable profits, less amounts recognised in previous years. Provision is made for any losses as they are foreseen.
Amounts recoverable on contracts are included in trade and other receivables and represent revenue recognised in excess of payments on account.
S e g m e n t a l	r e p o r t i n g
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker.  The 
chief operating decision-maker has been identified as the steering committee that makes strategic decisions.
For the purposes of segment reporting the Group does not have separate geographical reporting segments.
G o o d w ill
Goodwill representing the excess of the fair value of the consideration given over the fair value of the group’s share of the identifiable 
net assets acquired is capitalised and reviewed annually for impairment.  Goodwill is carried at cost less accumulated impairment losses.  
Negative goodwill is recognised immediately after acquisition in the income statement.
Goodwill written off to reserves prior to date of transition to IFRS remains in reserves. There is no re-instatement of goodwill that was 
amortised prior to transition to IFRS.  Goodwill previously written off to reserves is not written back to profit or loss on subsequent disposal. 29 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
O t h e r	i n t a n g i b l e	a s s e t s
Intangible assets with a finite useful life are amortised to the consolidated income statement on a straight-line basis over their estimated 
useful lives, which are reviewed on an annual basis.  Amortisation commences when the asset is available for use.  The residual values of 
intangible assets are assumed to be zero.
( i )	R e s e a r c h	a n d	d e v e l o p m e n t
Expenditure on research (or the research phase of an internal project) is recognised as an expense in the period in which it is incurred.  
Development costs incurred are capitalised when all the following conditions are satisfied:
•	 c o m p l e t i o n	o f	t h e	i n t a n g i b l e	a s s e t	i s	t e c h n i c a ll y	f e a s i b l e	s o	t h a t	i t	w ill	b e	a v a il a b l e	f o r	u s e	o r	s a l e
•	 t h e	g r o u p	i n t e n d s	t o	c o m p l e t e	t h e	i n t a n g i b l e	a s s e t	a n d	u s e	o r	s e ll	i t
•	 t h e	g r o u p	h a s	t h e	a b ili t y	t o	u s e	o r	s e ll	t h e	i n t a n g i b l e	a s s e t
•	 t h e	i n t a n g i b l e	a s s e t	w ill	g e n e ra t e	p r o b a b l e	f u t u r e	e c o n o m i c	b e n e fi t s .		A m o n g	o t h e r	t h i n g s ,	t h i s	r e q u i r e s	t h a t	t h e r e	i s	a	m a r k e t	f o r	t h e	
output from the intangible asset or for the intangible asset itself, or, if it is to be used internally, the asset will be used in generating such benefits
•	 t h e r e	a r e	a d e q u a t e	t e c h n i c a l ,	fi n a n c i a l	a n d	o t h e r	r e s o u r c e s	t o	c o m p l e t e	t h e	d e v e l o p m e n t	a n d	t o	u s e	o r	s e ll	t h e	i n t a n g i b l e	a s s e t ,	a n d
•	 t h e	e x p e n d i t u r e	a t t r i b u t a b l e	t o	t h e	i n t a n g i b l e	a s s e t	d u r i n g	i t s	d e v e l o p m e n t	c a n	b e	m e a s u r e d	r e li a b l y
Development costs not meeting the criteria for capitalisation are expensed as incurred.  The cost of an internally generated intangible 
asset comprises all directly attributable costs necessary to create, produce, and prepare the asset to be capable of operating in the manner 
intended by management.  Amortisation commences upon completion of the asset, and is shown within other operating charges.
Careful judgement by the directors is applied when deciding whether the recognition requirements for development costs have been met.  
This is necessary as the economic success of any product development is uncertain and may be subject to future technical problems at the 
time of recognition.  Judgements are based on the information available at each balance sheet date.  In addition, all internal activities 
related to the research and development of new software products are continuously monitored by the directors.
( i i )	C u s t o m e r	r e l a t i o n s h i p s
Customer relationships represent the purchase price of customer lists and contractual relationships purchased on the acquisition of CAPS 
Solutions Limited and Plantech Limited.  These relationships are carried at cost less accumulated amortisation and accumulated impairment 
losses.  Amortisation is calculated using the straight line method over a period of 20 years.
( i i i )	t r a d e	n a m e s
Trade names represent the named intangible asset recognised on the acquisition of CAPS Solutions Limited and Plantech Limited.  These 
trade names are carried at cost less accumulated amortisation and accumulated impairment losses.  Amortisation is calculated using the 
straight line method over a period of 20 years. 
( i v )	S o f t w a r e
Software represents the UNI-form and ACOLAID software purchased on the acquisition of CAPS Solutions Limited and Plantech Limited.  The 
software is carried at cost less accumulated amortisation and accumulated impairment losses.  Amortisation is calculated using the straight 
line method over a period of 10 years.
I m p a i r m e nt
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows 
(cash-generating units).  As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level.  
Goodwill is allocated to those cash-generating units that are expected to benefit from synergies of the related business combination and 
represent the lowest level within the group at which management monitors the related cash flows.
Goodwill, other individual assets or cash-generating units that include goodwill, other intangible assets with an indefinite useful life, and  3 0 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
those intangible assets not yet available for use are tested for impairment at least annually.  All other individual assets or cash-generating 
units are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset’s or cash-generating unit’s carrying amount exceeds its recoverable 
amount.  The recoverable amount is the higher of fair value, reflecting market conditions less costs to sell, and value in use based on an 
internal discounted cash flow evaluation.  Impairment losses recognised for cash-generating units, to which goodwill has been allocated, 
are credited initially to the carrying amount of goodwill.  Any remaining impairment loss is charged pro rata to the other assets in the cash 
generating unit.  With the exception of goodwill, all assets are subsequently reassessed for indications that an impairment loss previously 
recognised may no longer exist.
 
P r o p e r t y ,	p l a n t	a n d	e q u i p m e n t
Items of property, plant and equipment are stated at cost less accumulated depreciation.
Depreciation is charged to the income statement using the following rates and bases so as to write off the cost or valuation of items of 
property, plant and equipment over their expected useful lives.  The rates generally applicable are:
Computer hardware          50% and 100% straight line
Fixtures, fittings and equipment      25% straight line
Library books and journals        33 1/3% straight line
Useful economic lives and residual values are reviewed annually.
E m p l o y e e	b e n e fi t s
D e fi n e d	c o n t r i b u t i o n	p e n s i o n	p l a n s
Contributions paid to private pension plans of certain employees are charged to the income statement in the period in which they become 
payable. Contributions paid to the group personal pension plans of employees are charged to the income statement in the period in which 
they become payable.
S h a r e - b a s e d	p a y m e n t	t r a n s a c t i o n s
All share-based payment arrangements granted after 7 November 2002 that had not vested prior to 1 November 2006 are recognised in the 
financial statements.
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values.  Where employees 
are rewarded using share-based payments, the fair values of employees’ services are determined indirectly by reference to the fair value 
of the instrument granted to the employee.  This fair value is appraised at the grant date and excludes the impact of non-market vesting 
conditions (for example, profitability and sales growth targets).
All equity-settled share-based payments are ultimately recognised as an expense in the income statement with a corresponding credit to the 
share option reserve.
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best available 
estimate of the number of share options expected to vest.  Estimates are revised subsequently if there is any indication that the number 
of share options expected to vest differs from previous estimates.  Any cumulative adjustment prior to vesting is recognised in the current 
period.  No adjustment is made to any expense recognised in prior periods if share options that have vested are not exercised.
Upon exercise of share options, the proceeds received net of attributable transaction costs are credited to share capital, and where 
appropriate share premium. 31 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
R e ser ve s
Equity reserves comprise the following:
•	 “ S h a r e	p r e m i u m ”	r e p r e s e n t s	t h e	e x c e s s	o v e r	n o m i n a l	v a l u e	o f	t h e	f a i r	v a l u e	o f	c o n s i d e ra t i o n	r e c e i v e d	f o r	e q u i t y	s h a r e s ,	n e t	o f	e x p e n s e s	o f	
the share issue.
• 	 “ C a p i t a l 	 r e d e m p t i o n 	 r e s e r v e ” 	 r e p r e s e n t s 	 w h e n 	 t h e 	 e n t i r e 	 d e fe r r e d 	 o rd i na r y 	 s ha r e 	 c a p i t a l 	 w a s 	 b o u g h t 	 i n 	 e x c ha n g e 	 f o r 	 o n e 	 o rd i na r y 	 1 p 	 s ha r e .	
•	 “ M e r g e r	r e s e r v e ”	w h i c h	a r o s e	a s	a	r e s u l t	o f	a	g r o u p	r e c o n s t r u c t i o n	t h a t	o c c u r r e d	i n	1 7	N o v e m b e r	2 0 0 0 .	T h i s	r e p r e s e n t s	t h e	i s s u e d	s h a r e	
capital and share premium account in the Company’s subsidiary undertaking, IDOX Software Limited.  
•	 “ S h a r e	o p t i o n s	r e s e r v e ”	r e p r e s e n t s	s h a r e s	t o	b e	i s s u e d	o n	p o t e n t i a l	e x e r c i s e	o f	t h o s e	s h a r e	o p t i o n s	t h a t	h a v e	b e e n	a c c o u n t e d	f o r	u n d e r	
“IFRS 2 Share Based Payments”.
•	 “ E S O P	t r u s t ”	r e p r e s e n t s	s h a r e	c a p i t a l	p u r c h a s e d	t o	s a t i s f y	t h e	li a b ili t y	o f	t h e	e m p l o y e e	s h a r e	s c h e m e .	P u r c h a s e d	s h a r e s	a r e	c l a s s i fi e d	
within the ESOP trust reserve and presented as a deduction from total equity.
•	 “ R e t a i n e d	e a r n i n g s ”	r e p r e s e n t s	r e t a i n e d	p r o fi t s .
t axation
Tax on the profit or loss for the year comprises current and deferred tax.  Current tax is charged to the income statement except to where it 
relates to tax on items recognised directly in equity, in which case it is charged to equity.
Current tax is the tax currently payable based on taxable profit for the year.  
Deferred income taxes are calculated using the liability method on temporary differences.  Deferred tax is generally provided on the 
difference between the carrying amounts of assets and liabilities and their tax bases.  However, deferred tax is not provided on the initial 
recognition of goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or 
affects tax or accounting profit.  Deferred tax on temporary differences associated with shares in subsidiaries and joint ventures is not 
provided if reversal of these temporary differences can be controlled by the group and it is probable that reversal will not occur in the 
foreseeable future.  In addition, tax losses available to be carried forward as well as other income credits to the group are assessed for 
recognition as deferred tax assets.
Deferred tax liabilities are provided in full, with no discounting.  Deferred tax assets are recognised to the extent that it is probable that 
the underlying deductible temporary differences will be able to be offset against future taxable income.  Current and deferred tax assets 
and liabilities are calculated at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or 
substantively enacted at the balance sheet date.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate 
to items that are charged or credited directly to equity in which case the related deferred tax is also charged or credited directly to equity.
Operating leases
All leases are operating in nature.  Amounts paid under operating leases are charged to the income statement on a straight line basis over 
the lease term.
F i n a n c i a l	i n s t r u m e n t s
Financial assets and financial liabilities are recognised on the Group’s balance sheet when the Group has become a party to the contractual 
provisions of the instrument. 32 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
t r a d e	a n d	o t h e r	r e c e i v a b l e s
Trade receivables do not carry any interest and are initially stated at their fair value, as reduced by appropriate allowances for estimated 
irrecoverable amounts.  All receivables are considered for impairment.  Provision against trade receivables is made when there is objective 
evidence that the group will not be able to collect all amounts due to is in accordance with the original terms of those receivables.  The 
amount of the write-down is determined as the difference between the asset’s carrying value and the present value of estimated future cash flows.
C a s h	a n d	c a s h	e q u i v a l e n t s
Cash and cash equivalents comprise cash on hand and on deposit and are subject to an insignificant risk of changes in value.  
F i n a n c i a l	l i a b i l i t i e s	a n d	e q u i t y
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.  An equity 
instrument is any contact that evidences a residual interest in the assets of the group after deducting all of its financial liabilities.
B a n k	b o r r o w i n g s
Interest-bearing bank loans and overdrafts are recorded initially at fair value, net of direct transaction costs.  Such instruments are 
subsequently carried at their amortised cost and finance charges, including premiums payable on settlement or redemption, are recognised 
in the income statement over the term of the instrument using an effective rate of interest.
t r a d e	a n d	o t h e r	p a ya b l e s
Trade and other payables are not interest bearing, are initially stated at their fair value and subsequently at amortised cost.
E q u i t y	i n s t r u m e n t s
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
D e r i v a t i v e	fi n a n c i a l	i n s t r u m e n t s
The Group’s activities expose the entity primarily to interest rate risk.  The Group uses interest rate swap contracts to manage these 
exposures.  The Group does not use derivative financial instruments for speculative purposes.  The use of financial derivatives is governed 
by the Group’s policies approved by the board of directors, which provide written principles in the use of financial derivatives.  Derivative 
financial instruments are accounted for at fair value through profit or loss.  The Group does not apply hedge accounting.  33 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
2 	 S E G M E N ta l	a N a l y S I S
As at 31 October 2008 the Group is primarily organised into three main business segments, which are detailed below.
Financial information is reported to the Board on a business unit basis with revenue and operating profits split by business unit.  Each 
business unit is deemed a reportable segment as each offer different products and services.
•	 S o f t w a r e	–	d e li v e r s	s o f t w a r e	a n d	s e r v i c e	s o l u t i o n s	t o	m a i n l y	l o c a l	g o v e r n m e n t	c u s t o m e r s	a c r o s s	a	b r o a d	ra n g e	o f	d e p a r t m e n t s
•	 S o l u t i o n s 	 – 	 d e l i v e r i n g 	 b o t h 	 a n 	 i n f o r m a t i o n 	 s e r v i c e 	 a n d 	 c o n s u l t a n c y 	 s e r v i c e s 	 t o 	 a 	 d i v e r s e 	 r a n g e 	 o f 	 c u s t o m e r s 	 a c r o s s 	 b o t h 	 p r i v a t e 	 & 	 p u b l i c	
sectors
•	 R e c r u i t m e n t 	 – 	 p r o v i d i n g 	 p e r s o n n e l 	 w i t h 	 i n f o r m a t i o n , 	 k n o w l e d g e , 	 r e c o rd s 	 a n d 	 c o n t e n t 	 m a na g e m e n t 	 e x p e r t i s e 	 t o 	 a 	 d i v e r s e 	 r a n g e 	 o f	
customers. 
Segment revenue comprises sales to external customers and excludes gains arising on the disposal of assets and finance income. Segment 
profit reported to the board represents the profit earned by each segment before the allocation of tax, interest payments and share option 
charges.  
All assets and liabilities are allocated to reportable segments in line with the percentage of total revenue.  
The Group does not place reliance on any specific customer and has no individual customer that generates 10% or more of its total Group revenue.
The Group generates all its revenue from UK domiciled customers and hence further geographical disclosure is not required.
The segment results for the year ended 31 October 2008 are as follows:
Software Solutions Recruitment Total
£000 £000 £000 £000
Revenues from external customers 27,060 2,556 4,418 34,034
Interest revenue 222 21 20 263
Interest expense (4) - - (4)
Net interest revenue 218 21 20 259
Depreciation 259 66 15 340
Amortisation 920 - - 920
Segment profit/(loss) (see reconciliation below) 7,509 (234) 226 7,501
Segment total assets 38,655 3,578 6,310 48,543
Expenditures on segment non-current assets 294 23 3 320
Segment total liabilities 18,547 1,740 3,008 23,295 34 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
The segment results for the year ended 31 October 2007 are as follows:
Software
£000
Solutions
£000
Recruitment
£000
Total
£000
Revenues from external customers 13,222 3,269 4,134 20,625
Interest revenue 324 9 3 336
Interest expense - - - -
Net interest revenue 324 9 3 336
Depreciation 235 79 28 342
Amortisation 966 193 280 1,439
Segment profit/(loss) (see reconciliation below) 2,076 6 (286) 1,796
Segment total assets 26,077 6,447 8,152 40,676
Expenditures on segment non-current assets 281 108 33 422
Segment total liabilities 13,316 3,292 4,164 20,772
Segment result of the Recruitment segment includes an impairment loss in relation to goodwill of £Nil (2007: £400,000).
R e c o n c i l i a t i o n s	o f	r e p o r t a b l e	p r o fi t / ( l o s s )	a n d	a s s e t s	a n d	l i a b i l i t i e s :
2008 2007
£000 £000
P r o fit :
Total profit for reportable segments 7,501 1,796
Write-back amortisation 73 1,077
Impairment of goodwill - (400)
Other adjustments (1,005) (677)
Profit before taxation 6,569 1,796
a s s e t s :
Total assets for reportable segments 48,543 40,676
Deferred tax on fair value of goodwill - 3,423
Write-back of amortisation 73 1,077
Impairment of goodwill - (400)
Total assets 48,616 44,776
l i a b ilit i e s :
Total liabilities for reportable segments 23,295 20,772
Deferred tax on fair value of goodwill - 3,423
Release of deferred tax to Income Statement (125) (109)
Total liabilities
23,170 24,086 35 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
In 2008, one reportable segment included costs for amortisation under UK GAAP.  Other adjustments relate to interest and share option 
expenses that have not been allocated to the reportable segments.
Segments used by management for internal reporting in 2007 were done so under UK GAAP and excluded all IFRS adjustments.  The 
reconciling items relate to the annual impairment review of the goodwill rather than an amortisation charge and the recognition of a 
deferred tax liability on the intangible assets.
3 	 O P E R at I N G 	 P R O F I t	 F O R 	t h E 	y E a R 
Operating profit for the year has been arrived at after charging: 
2008 2007
£000 £000
Auditors’ remuneration:
Audit services 75 71
Non-audit services
 - Taxation 9 7
 - Other services 3 7
Bank facility fee amortisation 85 36
Operating lease rentals – buildings 348 247
Depreciation – property, plant & equipment, owned 340 342
Amortisation of intangibles 920 362
Impairment of goodwill - 400
Equity-settled share-based payments 108 359
In addition to the above, fees of £Nil (2007: £155,000) were paid to the auditors of the Group in relation to corporate finance transaction 
services.  36 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
4 	 D I R E C t O R S 	a N D 	 E M P l Oy E E S
Staff costs during the year were as follows:
2008 2007
£000 £000
Wages and salaries
13,073 8,005
Social security costs
1,306 529
Pension costs
366 105
14,745 8,639
The average number of employees of the company during the year was 296 (2007:199) and is made up as follows:
2008 2007
No No
Office and administration (including Directors of the company and its subsidiary undertakings) 43 30
Sales 51 30
Software development 87 23
Training 1 8
Support 62 17
Information services 14 35
Advisory 10 29
Operations 28 27
296 199
Remuneration in respect of directors was as follows:
2008 2007
£000 £000
Emoluments
521 602
Pension contributions
4 -
Compensation for loss of office
120 -
645 602
The amounts set out above include remuneration in respect of the highest paid director as follows: 
2008 2007
£000 £000
Aggregate emoluments 309 244
Pension contributions 4 -
Compensation for loss of office - -
313 244
Details of the remuneration for each director are included in the remuneration report which can be found on page 15 but which do not form 
part of the audited accounts. 37 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
5 	 F I N a N C E 	 I N CO M E 	a N D 	 CO S t S
2008 2007
£000 £000
Interest receivable 263 336
Bank loans interest payable (720) (282)
Bank loan amortisation (85) (36)
Fair value loss on financial liabilities recognised in profit or loss (96) -
Net finance (costs)/income (638) 18
6 	D I v I D E N D S
2008 2007
£000 £000
Final dividend paid in respect of the year ended 31 October 2007 and 31 October 2006 343 108
Pence per ordinary share 0.1p 0.05p
Final dividend proposed in respect of the year ended 31 October 2008 and 31 October 2007 396 343
Pence per ordinary share 0.115p 0.1p
7 	ta X 	 O N 	 P R O F I t	 O N 	 O R D I N a R y	a C t I v I t I E S
The tax charge is made up as follows:
2008 2007
£000 £000
C u r r e n t	t a x
Corporation tax on profits for the period 2,149 523
(Over)/under provision in respect of prior periods (272) 58
Total current tax 1,877 581
D e f e r r e d	t a x
Origination and reversal of timing differences (205) (6)
Adjustments in respect of prior periods 113 (466)
Total deferred tax (92) (472)
Total tax charge 1,785 109
Unrelieved trading losses of £121,000 (2007: £796,250) which, when calculated at the standard rate of corporation tax in the United Kingdom 
of 28% (2007: 30%), amounts to £33,880 (2007: £222,950). These remain available to offset against future taxable trading profits. During the 
year ended 31 October 2007 £624,000 of tax losses surrendered in exchange for the research and development tax credits in respect of the 
year ended 31 October 2003 were reinstated. 38 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
Factors affecting the tax charge in the period:
2008 2007
£000 £000
Profit before taxation 6,569 1,796
Profit on ordinary activities multiplied by the standard
rate of corporation tax in the UK of 28% (2007: 30%) 1,839 539
Effects of:
Expenses not deductible for tax purposes 262 102
Expenses in respect of share options 217 -
Capital allowances in excess of depreciation 19 -
Marginal relief - (5)
Difference in tax rate 84 (7)
Adjustments in respect of prior period (158) (411)
Net movement on deferred tax on intangibles (478) (109)
1,785 109
8 	 E a R N I N G S 	 P E R 	 S h a R E
The earnings per ordinary share is calculated by reference to the earnings attributable to ordinary shareholders divided by the weighted 
average number of shares in issue during each period, as follows:
2008 2007
£000 £000
Profit for the year 4,784 1,687
B a s i c	e a r n i n g s	p e r	s h a r e
Weighted average number of shares in issue 342,059,867 267,538,092
Basic earnings per share 1.40p 0.63p
D i l u t e d	e a r n i n g s	p e r	s h a r e
Weighted average number of shares in issue used in basic earnings per share calculation 342,059,867 267,538,092
Dilutive share options 5,061,729 564,869
Weighted average number of shares in issue used in dilutive earnings per share calculation 347,121,596 268,102,961
Diluted earnings per share 1.38p 0.63p 39 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
2008 2007
£000 £000
N o r m a l i s e d	e a r n i n g s	p e r	s h a r e
Profit for the year 4,784 1,687
Addback:
Amortisation 920 362
Share option costs 108 359
Interest rate swaps 96 -
Less:
Capitalised research & development (353) -
Normalised profit for the year 5,555 2,408
Weighted average number of shares in issue 342,059,867 267,538,092
Normalised earnings per share 1.62p 0.90p
9 	 P R O P E R t y , 	 P l a N t	a N D 	 E Q u I P M E N t
Computer 
hardware
Fixtures, fittings 
and equipment
Library books 
and journals Total
£000 £000 £000 £000
Cost 
At 1 November 2006 1,134 570 360 2,064
Additions 186 31 103 320
Additions on acquisition - 102 - 102
At 31 October 2007 1,320 703 463 2,486
Additions 146 120 25 291
Additions on acquisition 26 10 - 36
At 31 October 2008 1,492 833 488 2,813
D e pre ci a t i o n
At 1 November 2006 1,014 337 280 1,631
Provided in the year 180 90 72 342
At 31 October 2007 1,194 427 352 1,973
Provided in the year 152 123 65 340
At 31 October 2008 1,346 550 417 2,313
Net book amount at 31 October 2008 146 283 71 500
Net book amount at 31 October 2007 126 276 111 513
Net book amount at 1 November 2006 120 233 80 433
The Group has pledged the above assets having a net book value of approximately £500,000 (2007: £513,000) to secure banking facilities 
granted to the Group. 4 0 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
1 0 	 I N ta N G I B l E 	 F I X E D 	a S S E t S
Goodwill
Customer 
relationships Trade names Software
Development 
costs Total
£000 £000 £000 £000 £000 £000
Cost 
At 1 November 2006
5,656 - - - - 5,656
Additions on acquisition
12,676 5,860 2,500 3,050 - 24,086
Fair value adjustment (see below)
374 - - - - 374
At 31 October 2007
18,706 5,860 2,500 3,050 - 30,116
Additions on acquisition
2,059 1,160 520 840 153 4,732
Additions
- - - - 353 353
At 31 October 2008
20,765 7,020 3,020 3,890 506 35,201
a m o rt i s a t i o n 	 a n d 	 i m p a i r m e n t 	 l o s s e s
At 1 November 2006
1,632 - - - - 1,632
Amortisation for the year
- 146 63 153 - 362
Impairment
400 - - - - 400
At 31 October 2007
2,032 146 63 153 - 2,394
Amortisation for the year
- 352 152 390 26 920
At 31 October 2008
2,032 498 215 543 26 3,314
Carrying amount at 31 October 2008
18,733 6,522 2,805 3,347 480 31,887
Carrying amount at 31 October 2007
16,674 5,714 2,437 2,897 - 27,722
Carrying amount at 1 November 2006
4,024 - - - - 4,024
Included within current goodwill additions is a fair value adjustment of £374k which has increased the value of goodwill attributed to 
the acquisition of CAPS Solutions Limited in June 2007.  Under IFRS 3 the previous period results have been restated as following a review 
by management an additional contract accrual was identified which existed during the post acquisition period.  Further information has 
clarified the position adopted at the time of the acquisition leading to the restatement of prior year figures. 
The remaining useful lives and carrying value of the above intangibles assets is as follows:
2008 2007 2008 2007
Remaining 
amortisation 
period (years)
Remaining 
amortisation 
period (years)
Carrying value
£000
Carrying value
£000
C a P s	i n t a n g i b l e s :
Customer relationships 18.5 19.5 5,421 5,714
Trade names 18.5 19.5 2,312 2,437
Software 8.5 9.5 2,592 2,897
P l a n t e c h	i n t a n g i b l e s :
Customer relationships 19 - 1,101 -
Trade names 19 - 493 -
Software 9 - 755 - 41 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
During the year, goodwill was reviewed for impairment in accordance with IAS 36, Impairment of Assets.  No impairment charges 
(2007:  £400,000) arose as a result of this review.  
For this review goodwill was allocated to individual Cash Generating Units (CGU) on the basis of the Group’s operations.  The carrying value 
of goodwill by each CGU is as follows:
2008 2007
£000 £000
Cash Generating Units (CGU)
Plantech 2,059 -
CAPS 13,050 13,050
Nettgain 727 727
IIS 407 407
TFPL 2,490 2,490
18,733 16,674
The recoverable amount of a CGU is determined based on value-in-use calculations.  These calculations use pre-tax cash flow projections 
based on financial budgets approved by management covering the next financial year.  Cash flows beyond this period are extrapolated using 
the estimated growth rates stated below.
The growth rates and margins used to estimate future performance are based on management’s best estimate of short term performance 
based on an assessment of market opportunities and macro economic conditions. In the year to 31 October 2008 the Weighted Average Cost 
of Capital for the Group has been used as an appropriate discount rate to apply to cash flows.  This represents the overall required return on 
the Group as a whole.  
The assumptions used for the CGU included within the impairment reviews are as follows:
2008 2007
Discount rate 12.5% 12.5%
Growth rate 2% 2%
These assumptions have been used for the analysis of each CGU. In addition to this an external valuation is obtained with regards to TFPL and 
is assessed in addition to the value-in-use calculations.
Furthermore, management has assumed that the TFPL consulting business generates a profitable outcome in 2009 through both revenue 
growth and an improvement in margin and that the IIS subscription business grows both its subscription and projects revenues as a result of 
new sales initiatives.  It has also been assumed that the three software CGUs; Plantech, CAPS and Nettgain continue to sell their portfolio of 
products and services into new and existing customers. 42 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
1 1 	 F I N a N C I a l	a S S E t S 	a N D 	l I a B I l I t I E S
C a t e g o r i e s	o f	fi n a n c i a l	a s s e t s	a n d	l i a b i l i t i e s
The disclosures detailed below are as required by IFRS 7 Financial Instruments: Disclosures.  The carrying amounts presented on the Balance 
Sheet relate to the following categories of assets and liabilities:
2008 2007
Financial assets Note £000 £000
Loans and receivables:
Trade and other receivables 13 7,039 6,419
Cash and cash equivalents 12 7,688 8,927
14,727 15,346
2008 2007
Financial liabilities Note £000 £000
F i n a n c i a l	l i a b i l i t i e s	c a r r i e d	a t	f a i r	v a l u e	t h r o u g h	p r o fi t	o r	l o s s :
Derivative financial instruments 19 (96) -
F i n a n c i a l	l i a b i l i t i e s	m e a s u r e d	a t	a m o r t i s e d	c o s t :
Non-current:
Borrowings 17 5,696 6,611
Trade and other payables 14 422 619
Current: 6,118 7,230
Borrowings 17 1,000 1,000
Trade and other payables 14 2,845 5,167
4,267 6,986
12 	C a S h 	 a N D	C a S h 	E Q u I va l E N t S
2008 2007
£000 £000
Cash at bank and in hand 7,688 8,927
Cash and cash equivalents per cash flow statement 7,688 8,927 43 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
13 	t R a D E 	a N D 	 O t h E R 	 R E C E I va B l E S
2008 2007
£000 £000
Trade receivables, gross 6,815 6,303
Allowance for credit losses (492) (472)
Trade receivables, net 6,323 5,831
Amounts recoverable on contracts 637 461
Other receivables 79 127
Financial assets 7,039 6,419
Prepayments and accrued income 1,237 544
Non-financial assets 1,237 544
8,276 6,963
All of the closing Group trade receivables are UK Sterling.  There are no other currencies included in the closing balances.
Amounts recoverable on contracts represent work completed and delivered to the customer, but due to the contractual payment terms have 
not yet been invoiced.
Credit quality of financial assets
Based on past experience the Group believes that no impairment allowance is necessary in respect of trade receivables not past due.  
The maximum exposure for the Group to credit risk for trade receivables at the reporting date by type of customer was:
2008 2007
£000 £000
Local authorities and other public bodies 5,377 4,323
Private companies 1,438 1,980
6,815 6,303
The ageing of trade receivables at the reporting date for the Group was:
Gross Impairment Gross Impairment
2008 2008 2007 2007
£000 £000 £000 £000
Not past due 3,944 - 2,352 -
Past due 0 to 30 days 428 - 1,325 -
Past due 31 to 60 days 380 - 772 -
More than 61 days 2,063 492 1,854 472
6,815 492 6,303 472 44 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
Movements in the provision for impairment of receivables for the Group were as follows:
2008 2007
£000 £000
At 1 November 472 111
Charge for the year 20 361
At 31 October 492 472
The provision allowance in respect of trade receivables is used to record impairment losses unless the Group is satisfied that no recovery 
of the amount owing is possible. At that point the amounts are considered irrecoverable and are written off against the trade receivable 
directly. Where trade receivables are past due an assessment is made of individual customers and the outstanding balance. No provision is 
required in respect of amounts owed by group undertakings.
The credit quality of the holder of the Cash at bank is AA rated. None of the financial assets that are fully performing have been 
re-negotiated in the last year.
1 4 	 t R a D E 	 a N D 	 O t h E R 	 P a y a B l E S	
2008 2007
£000 £000
Trade payables 1,338 1,660
Accruals 1,929 4,126
3,267 5,786
Of total trade and other payables of £3,267,000, current and non-current balances amount to £2,845,000 and £422,000 respectively. The 
carrying values of trade and other payables are considered to be a reasonable approximation of fair value.  Accruals represent liabilities 
which have been recognised at the balance sheet date. This amount will reduce the invoices and payments to which the balance relates are 
received and paid. The majority of this will be released during the next six months.
15 	 O t h E R 	l I a B I l I t I E S
2008 2007
£000 £000
Social security and other taxes 1,329 883
Other payables 449 398
Deferred income 6,335 4,939
8,113 6,220
Deferred income represents software revenue where billing milestones have been reached but the appropriate proportion of work has not 
been completed and maintenance and subscription revenues which are spread over the period, typically one year, for which the service is supplied.
16 	 P R O v I S I O N S
2008 2007
£000 £000
At 1 November 574 -
Provision made during the year - 574
Provision released during the year (204) -
At 31 October 370 574 4 5 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
The provision for an onerous contract is in respect of a five year hosting agreement entered into in 2007 by CAPS Solutions Ltd prior to its 
acquisition by IDOX plc.  Management consider that there is no foreseeable economic value in this contract, and have therefore provided 
fully against the total contracted expenditures.
1 7 	 B O R R O W I N G S	
All borrowings are held at amortised cost and are summarised as follows:
2008 2007
£000 £000
C u r r e nt
Bank borrowings 1,000 1,000
N o n - c u r r e nt
Bank borrowings 5,696 6,611
Total borrowings 6,696 7,611
The average interest rate paid was 9.42% (2007: 9.62%). Bank borrowings of £6,696,000 (2007: £7,611,000) were arranged at floating interest 
rates. As discussed in note 19, the Group has entered into certain derivative hedges to fix interest rates paid on a portion of the loan.  Bank 
borrowings mature until 2012.
As security for the above loans, the Bank of Scotland holds a bond and floating charge over the assets of the Group, a composite guarantee 
supported by each Group company and a share pledge in respect of the entire issued share capital of each subsidiary company.
The loans are repayable in six monthly instalments. Interest on the loans is payable quarterly in arrears.  
The directors’ estimate that the fair value of the Group’s borrowing is not significantly different to the carrying value.
1 8 	D E F E R R E D	 I N CO M E 	 ta X
Deferred tax assets and liabilities are summarised as follows:
2008 2007
£000 £000
Deferred tax assets 265 651
Deferred tax liabilities (current) (250) (202)
Deferred tax liabilities (non current) (3,292) (3,112)
(3,542) (3,314)
The movement in the year in the net deferred tax provision was as follows:
2008 2007
£000 £000
At 1 November (2,663) 288
(Credit)/Charge to income for the year 92 472
Charge to goodwill for the year (706) (3,423)
At 31 October (3,277) (2,663)
The movement in deferred income tax assets and liabilities during the year, is as follows: 46 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
Share-based 
payments
Other timing 
differences
Total deferred 
tax asset
Accelerated tax 
depreciation
Total deferred 
tax liability
£000 £000 £000 £000 £000
At 1 November 2006 - 288 288 - -
Charge to income statement 101 262 363 109 109
Charge to goodwill - - - (3,423) (3,423)
At 31 October 2007 101 550 651 (3,314) (3,314)
(Charge)/Credit to income statement (80) (306) (386) 478 478
Charge to goodwill - - - (706) (706)
At 31 October 2008 21 244 265 (3,542) (3,542)
There were no unprovided deferred tax assets at 31 October 2008 or 31 October 2007. Included in the current year accelerated tax 
depreciation amount of £478,000 is £228,000 arising from the impact of the tax rate change.
 
19 	 D E R I vat I v E 	 F I N a N C I a l	 I N S t R u M E N t S
The carrying amounts for the Group’s derivative financial instruments may be further analysed as follows:
2008 2007
£000 £000
F a i r	v a l u e :
Interest rate swap 96 -
Derivative financial liabilities 96 -
The fair value of the contract has been estimated using relevant market interest rates.
In the current year the Group has used interest rates swaps to manage its exposure to interest rate movements on its bank borrowings. 
Contracts with notional values of £3m fix interest payments at an average rate of 6.31% for periods up until 2011.
The fair value of swaps entered into at 31 October 2008 is estimated at £(96,000) (2007: £Nil).  
2 0 	 R I S k	 M a N a G E M E N t	 O B J E C t I v E S 	a N D 	 P O l I C I E S
The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, cash flow interest rate risk and 
price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets 
and seeks to minimise potential adverse effects on the Group’s financial performance and to allow the Group to take advantage of new 
growth opportunities whilst maximising shareholder value.
The Group’s principal financial instruments comprise cash and cash equivalents, short term deposits and bank borrowings. The main purpose 
of these financial instruments is to finance the Group’s operations. The Group has other financial instruments which mainly comprise trade 
receivables and trade payables which arise directly from its operations.
Risk management is carried out by the finance department under policies approved by the board of directors. The Group finance department 
identifies, evaluates and manages financial risks. The board provides guidance on overall risk management including foreign exchange risk, 
interest rate risk, credit risk, and investment of excess liquidity.
The impact of the risks required to be discussed under IFRS 7 are detailed below: 47 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
M a r k e t	r i s k
( i ) F o r e i g n	e x c h a n g e	r i s k
Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not 
the group’s functional currency. The Group has no exposure to foreign exchange risk. 
( i i )	P r i c e	r i s k
The Group is not exposed to equity securities price risk because no investments are held by the group. The group is not exposed to 
commodity price risk.
( i i i )	C a s h	fl o w	a n d	f a i r	v a l u e	i n t e r e s t	r a t e	r i s k
The Group is exposed to interest rate risk in respect of cash balances held with banks and other highly rated counterparties. 
The Group’s main interest rate risk arises from long-term borrowings.  Borrowings issued at variable rates expose the group to cash flow 
interest rate risk.  Borrowings issued at fixed rates expose the group to fair value interest rate risk.  During 2008 and 2007, all the group’s 
borrowings were denominated in UK Sterling.
The group manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps.  Such interest rate swaps have the economic 
effect of converting borrowings from floating rates to fixed rates.  Generally, the group raises long-term borrowings at floating rates and 
swaps them into fixed rates that are lower than those available if the group borrowed at fixed rates directly.  Under the interest rate swaps, 
the group agrees with other parties to exchange, at specified intervals (primarily quarterly), the difference between fixed contract rates and 
floating-rate interest amounts calculated by reference to the agreed notional amounts.
At 31 October 2008, if interest rates on borrowings had been 1% higher/lower with all other variables held constant, post-tax profit for the 
year would have been £73,000 (2007: £32,000) lower/higher, mainly as a result of higher/lower interest expense on floating rate borrowings; 
other components of equity would also have been £73,000 (2007: £32,000) lower/higher.
P o r t f o l i o	o f	i n t e r e s t	r a t e	d e r i v a t i v e	i n s t r u m e n t s :
Pay fixed 
notional
£000
Weighted 
average fixed 
interest rate %
Weighted 
average time to 
maturity
Years Maturity years
20 0 8
Sterling:
Interest rate swap 3,000 6.31 2.9 2011
2 0 07
Sterling:
Interest rate swap - - - - 48 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
C r e d i t	r i s k
The Group’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at the reporting date, as 
summarised below:
2008 2007
£000 £000
C l a s s e s	o f	fi n a n c i a l	a s s e t s	–	c a r r y i n g	a m o u n t s
Cash and cash equivalents 7,688 8,927
Trade receivables 6,323 5,831
Amounts recoverable on contracts 637 461
Other receivables 79 127
Carrying amount 14,727 15,346
Credit risk is managed on a group basis. Credit risks arises from cash and cash equivalents and deposits with banks and financial institutions, 
as well as credit exposures to customers, including outstanding receivables and committed transactions.  
The Group’s credit risk is primarily attributable to its trade receivables. It is the policy of the Group to present the amounts in the balance 
sheet net of allowances for doubtful receivables, estimated by the Group’s management based on prior experience and the current economic 
environment. The Group reviews the reliability of its customers on a regular basis, such a review takes into account the nature of and the 
Group’s trading history with the customer.
The credit risk on liquid funds is limited because the counterparties are four banks with high credit-ratings assigned by international 
credit-rating agencies. Management does not expect any losses from non-performance of these counterparties.
None of the Group’s financial assets are secured by collateral or other credit enhancements.
l i q u i d i t y	r i s k
The Group closely monitors its access to bank and other credit facilities in comparison to its outstanding commitments on a regular basis to 
ensure that it has sufficient funds to meeting obligations of the group as they fall due.
The board receives regular debt management forecasts which estimate the cash inflows and outflows over the next twelve months, so that 
management can ensure that sufficient financing is in place as it is required.  Surplus cash within the Group is put on deposit in accordance 
with limits and counterparties agreed by the Board, the objective being to maximise return on funds whilst ensuring that the short-term 
cashflow requirements of the Group are met.
Detailed analysis of the debt facilities taken out and available to the group are disclosed in note 17.  In addition, interest rate swaps taken out 
by the Group to manage its exposure to fluctuating interest rates ensure that the group can manage cash outflows on interest payments closely. 49 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
As at 31 October 2008, the Group’s financial liabilities have contractual maturities (including interest payments where applicable) 
as summarised below:
 Current                   Current Non-current            Non-current
Within 6 months 6 – 12 months 1 – 5 years Later than 5 years
£000 £000 £000 £000
Bank borrowings 569 821 7,178 -
Trade and other payables 2,690 155 422 -
Derivative financial instruments:
Outflow (84) (70) (118) -
Inflow 69 37 71 -
This compares to the maturity of the Group’s financial liabilities in the previous reporting period as follows:
Current                   Current Non-current            Non-current
Within 6 months 6 – 12 months 1 – 5 years Later than 5 years
£000 £000 £000 £000
Bank borrowings 2690 872 8,507 61
Trade and other payables 5,143 24 619 -
The above amounts reflect the contractual undiscounted cashflows, which may differ from the carrying values of the liabilities at the 
reporting date.
C a p i t a l	r i s k	m a n a g e m e n t
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns 
for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to 
maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, 
issue new shares or sell assets to reduce debts.
21 	 S h a R E 	 C a P I ta l
2008 2007
£000 £000
Authorised:
650,000,000 ordinary shares of 1p each (2007: 650,000,000) 6,500 6,500
Allotted, called up and fully paid
As at 1 November 3,420 1,953
Issue of share capital 22 1,467
344,158,366 ordinary shares of 1p each (2007: 341,927,567) 3,442 3,420
Movement in issued share capital in the year
During the year to 31 October 2008, 2 former employees exercised share options. On 24 December 2007, 1,230,769 share options were 
exercised at an exercise price of 8.13p per share. On 24 June 2008 a further 1,000,000 share options were exercised at an exercise price of 10p 
per share. See note 22 for further details on share options. 
 
The company has one class of ordinary shares which carry no right to fixed income.
At 31 October 2008, there were 486,178 (2007: 444,944) shares in issue under the ESOP.  During the year the average issue share price was 
11.9p (2007: 8.2p). 50 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
2 2 	 S h a R E 	 O P t I O N S	 	 	
The company has an unapproved share option scheme for all employees (including directors). All share options are exercisable at a price 
equal to the average market price of the company’s shares on the date of grant. The vesting period is usually 1 to 3 years. The options are 
settled in equity once exercised.  
Details of all share options over 1p Ordinary shares, falling within the measurement and recognition criteria of IFRS 2 “Share-based 
Payment”, including their contractual life and exercise prices are as follows:
At start of year
Granted during 
year Exercised Lapsed in year At end of year Exercise price
Exercise date 
from
Exercise date 
to
4,500,000 - - - 4,500,000 6.50p Feb 2007 Oct 2011
4,500,000 - - - 4,500,000 9.00p Feb 2007 Oct 2014
1,500,000 - - - 1,500,000 7.50p May 2007 Feb 2013
266,000 - - - 266,000 7.50p May 2007 May 2013
900,000 - - - 900,000 7.50p May 2007 May 2017
1,019,231 - - (1,019,231) - 8.13p Jun 2007 Dec 2007
1,846,154 - (1,230,769) - 615,385 8.13p Jun 2007 Oct 2014
2,250,000 - - (2,250,000) - 11.13p Jun 2007 Apr 2008
- 550,000 - - 550,000 15.00p Dec 2007 Jun 2011
- 960,000 - - 960,000 12.50p May 2008 May 2018
- 1,192,308 - - 1,192,308 13.00p Aug 2008 Aug 2014
- 1,033,334 - - 1,033,334 15.00p Aug 2008 Aug 2014
16,781,385 3,735,642 (1,230,769) (3,269,231) 16,017,027
The following table sets out the number of share options and associated WAEP outstanding during the year.
2008 2007
    WAEP    WAEP
No Pence No pence
Outstanding at the beginning of the year 16,781,385      8.22 - 8.22
Granted during the year 3,735,642 - 16,831,385 -
Exercised during the year (1,230,769) 8.13 - -
Forfeited during the year (3,269,231) 9.25 - -
Expired during the year - - (50,000) 7.50
Outstanding at the end of the year 16,017,027 8.13 16,781,385 8.22
Exercisable at the end of the year 11,564,429 11.75 16,781,385 8.22
The share options outstanding at the end of the year have a weighted average remaining contractual life of 3.5 years.  51 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
The fair values were calculated using the Black-Schöles Pricing Model and the following information.
Date of issue
Number 
granted
Weighted 
average share 
price
Weighted 
average 
exercise price
Expected 
volatility Expected life Risk free rate
Expected 
dividend yield
Weighted 
average fair 
value at grant 
date
No. pence pence % Years % %   £
2007:
Feb 07 4,500,000 6.50 6.50 48.00 3.5 4.25 0.6 0.03
Feb 07 4,500,000 6.50 9.00 48.00 3.5 4.25 0.6 0.03
May 07 2,716,000 7.50 7.50 48.00 3.5 4.25 0.6 0.03
Jun 07 2,865,385 8.13 8.13 48.00 3.5 4.25 0.6 0.03
Jun 07 2,250,000 11.13 11.13 48.00 3.5 4.25 0.6 0.03
2008:
Dec 07 550,000 8.00 8.00 48.00 3.5 5.00 0.6 0.03
May 08 960,000 12.50 12.50 48.00 3.5 5.00 0.6 0.05
Aug 08 1,192,308 13.00 13.00 48.00 3.5 5.00 0.6 0.06
Aug 08 1,033,334 13.00 15.00 48.00 3.5 5.00 0.6 0.05
Expected volatility was determined by calculating the historical volatility of the company’s share price over the previous 3 years. The 
expected life used in the model has been adjusted, based on the management’s best estimate, for the effects of non-transferability, exercise 
restrictions and behavioural considerations.
The company recognised total expenses of £108,000 (2007 - £359,000) related to equity-settled share-based payment transactions during the year.
t r a n s i t i o n a l	P r o v i s i o n s
Under the transitional provisions of IFRS 2 share options granted prior 7 November 2002 but not vested at 1 November 2006 fall outwith the 
measurement and recognition criteria of IFRS 2 “Share-based Payment”.
Details of all such share options over 1p Ordinary shares, including their contractual life and exercise prices, are as follows:
At start of year
Granted during 
year Exercised Lapsed in year At end of year Exercise price
Exercise date 
from
Exercise date 
to
1,500,000 - - - 1,500,000 12.75p Nov 2001 Jun 2010
166,667 - - - 166,667 12.00p Dec 2003 Dec 2013
1,666,667 - - - 1,666,667 12.00p Jun 2002 Dec 2012
645,159 - - - 645,159 15.50p Jul 2004 Jul 2014
516,129 - - - 516,129 15.50p Jan 2003 Jul 2013
1,032,258 - - - 1,032,258 15.50p Oct 2004 Feb 2015
1,863,636 - - - 1,863,636 11.00p Apr 2004 Oct 2012
173,913 - - - 173,913 11.50p Oct 2006 Oct 2016
5,000,000 - (1,000,000) - 4,000,000 10.00p Sep 2004 May 2014
12,564,429 - (1,000,000) - 11,564,429 52 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
For those share options the table below summarises the number of these share options and the associated weighted average exercise price 
(WAEP) outstanding during the year.
2008 2007
    WAEP    WAEP
No Pence No pence
Outstanding at the beginning of the year 12,564,429 11.75 12,564,429 11.75
Granted during the year - - - -
Exercised during the year (1,000,000) 10.00 - -
Forfeited during the year - - - -
Expired during the year - - - -
Outstanding at the end of the year 11,564,429 11.75 12,564,429 11.75
Exercisable at the end of the year 11,564,429 11.75 12,564,429 11.75
2 3 	a CQ u I S I t I O N S
On 21 February 2008, the Group acquired the entire share capital of Plantech Limited for a consideration of £5,133,000, satisfied in cash.  
Goodwill arising on the acquisition of Plantech Limited has been capitalised. The purchase of Plantech Limited has been accounted for 
using the acquisition method of accounting.
 
Book value
£000
Fair value 
adjustments £000
Fair value
£000
Intangible assets:
Customer relationships - 1,160 1,160
Trade names - 520 520
Software - 840 840
Research & development 153 - 153
Property, plant and equipment 56 (20) 36
Trade receivables 677 (32) 645
Other receivables 130 - 130
Cash at bank 1,526 - 1,526
TOTAL ASSETS 2,542 2,468 5,010
Trade payables (66) - (66)
Deferred revenue (69) - (69)
Corporation tax (9) - (9)
Social security and other taxes (133) - (133)
Accruals (727) - (727)
Deferred tax liability - (706) (706)
TOTAL LIABILITIES (1,004) (706) (1,710)
NET ASSETS 1,538 1,762 3,300
Purchased goodwill capitalised 2,059
5,359
Satisfied by:
Cash to vendor 5,133
Costs of acquisition 226
Total cash paid 5,359 53 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
The fair value adjustment for the intangible assets relates to customer relationships, trade names and software.  A related deferred tax 
liability has also been recorded as a fair value adjustment.
Other adjustments were made to bring the carrying values of property, plant and equipment and trade receivables in line with their fair value.
The profit after taxation of Plantech Limited for the period from 1 May 07, the beginning of the subsidiary’s financial year, to the date of 
acquisition was £85,828.  The profit after taxation for the year ended 30 April 2007 was £294,056.
Residual goodwill comprises the workforce, any immaterial intangible asset values and a strategic premium paid to acquire the business.  
These do not form identifiable intangible assets under IFRS 3. The fair values are considered provisional.
Further details on the profit of Plantech Limited are provided below:
1 November 
2007 to date of 
acquisition
Post acquisition 
to 31 October
 2008
£000 £000
Turnover 1,166 3,161
Operating profit 149 1,008
Profit before taxation 165 1,042
Taxation (37) (193)
Profit for the period 128 849
There were no material recognised gains and losses in the period to the date of acquisition other than the profit for the period. 
The subsidiary undertaking acquired during the year made the following contribution to, and utilisation of, group cash flow. 
2008
£000
Net cash inflow from operating activities 856
Increase in cash 856
Analysis of net outflow of cash in respect of the purchase of the subsidiary undertaking:
2008
£000
Cash at bank and in hand acquired 1,526
Cash consideration paid (5,359)
(3,833) 54 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
2 4 	 O P E R at I N G 	l E a S E 	 CO M M I t M E N t S
The future aggregate minimum lease payments under non-cancellable operating leases are as follows:
 
2008 2007
The group £000 £000
Amounts due:
Within one year 37 460
Between one and five years 757 1,027
After five years - -
794 1,487
Operating lease payments represent rentals payable by the Group for office premises. 
2 5 	 C a P I ta l	 CO M M I t M E N t S
The Group had no capital commitments at 31 October 2008 (2007: £Nil).
2 6 	 C O N t I N G E N t 	 l I a B I l I t I E S	
The Company has agreed to provide continuing financial support to its subsidiary undertakings, Idox Software Limited and IDOX Information 
Services Limited. There were no material Group contingent liabilities at 31 October 2008 or 31 October 2007. 
2 7 	 R E l at E D 	 Pa R t y	t R a N S a C t I O N S
C o m p e n s a t i o n	p a i d	t o	s e n i o r	m a n a g e m e n t	o f	t h e	g r o u p :
2008 2007
£000 £000
Salaries and other short term employee benefits 1,314 1,222
Post-employment benefits 120 135
Share-based payments 108 360
1,542 1,717
2 8 	 E X P l a N at I O N 	 O F 	t R a N S I t I O N 	t O 	 I F R S
As stated in the Basis of Preparation, this is the Group’s first consolidated financial statements prepared in accordance with IFRS as adopted 
by the EU.  The Group’s date of transition to IFRS was 1 November 2006. An explanation of how the transition from UK GAAP to IFRS has 
affected the Group’s financial position, financial performance and cash flows is set out below.
IFRS 1 permits companies adopting IFRS for the first time to take certain exemptions from the full requirements of IFRS in the transition 
period. These consolidated financial statements have been prepared on the basis of taking the following exemption:
•	 B u s i n e s s	c o m b i n a t i o n s	p r i o r	t o	1	N o v e m b e r	2 0 0 6 ,	t h e	G r o u p ’ s	d a t e	o f	t ra n s i t i o n	t o	I F R S ,	h a v e	n o t	b e e n	r e s t a t e d	t o	c o m p l y	w i t h	I F R S	3	
“Business Combinations”.  Goodwill arising from these business combinations of £5,655,879 has not been restated other than as set out in 
the note below.
No other exemptions have been applied. 55 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
For the year ended 31 October 2008
R e c o n c i l i a t i o n	o f	i n c o m e	s t a t e m e n t	f o r	t h e	y e a r	e n d e d	3 1	O c t o b e r	2 0 0 7
 Notes
UK GAAP 
(audited) £000
Effect of 
transition to IFRS 
£000
IFRS 
(unaudited)
£000
R ev e n u e 20,625 - 20,625
External charges (5,435) - (5,435)
15,190 - 15,190
Staff costs (8,639) - (8,639)
Other operating charges a) (3,310) (400) (3,710)
3,241 (400) 2,841
Depreciation (342) - (342)
Amortisation a), b) (1,439) 1,077 (362)
Share option costs (359) - (359)
O p e r a t i n g	p r o fi t 1,101 677 1,778
Finance income 336 - 336
Finance costs (318) - (318)
Profit before taxation 1,119 677 1,796
Income tax expense c) (218) 109 (109)
P r o fi t	f o r	t h e	p e r i o d 901 786 1,687
N o t e s	t o	t h e	r e c o n c i l i a t i o n s	o f	t h e	i n c o m e	s t a t e m e n t s
a) Under IFRS goodwill is not amortised, but is subject to an annual impairment review.  Goodwill amortised of £1,439,000 for the year to 31 
October 2007 has been removed.  Further, when amortisation of goodwill was removed the carrying value in respect of TFPL Limited was not 
supportable by £400,000.
b) Following a fair value exercise on the company’s intangible assets, the newly created assets are now being amortised over 10-20 years.   
This has resulted in an amortisation charge of £362,000 for the period to 31 October 2007.
c) IAS 12 requires deferred tax to be provided on all taxable temporary differences.  The income earned whilst the intangible asset is used 
will be taxable and there will be no tax deductions against that income from the use of the asset. This results in a temporary difference equal 
to the carrying value of the asset on initial recognition in the consolidated accounts. The result of the adjustment is to increase the deferred 
tax liability and increase goodwill. As at 31 October 2007 the value of deferred tax liabilities was increased by £3,423,000 respectively. As the 
intangible asset is amortised, the temporary difference will decrease and there is a reduction in the deferred tax expense recognised in the 
consolidated income statement.  The recognition of this deferred tax credit to the income statement reduces the impact of the amortisation 
of the intangible asset on the profits for the year. 5 6 IDOX plc Annual Report and Accounts 2008
N o t e s	t o	t h e	a c c o u n t s	c o n t ’ d
R e c o n c i l i a t i o n	o f	e q u i t y
 Notes
As at 1 
November 2006 
£000
As at 31 
October 2007
£000
N e t	a s s e t s	a n d	e q u i t y	u n d e r	u k	G a a P 8,407 19,904
Adjustments (after taxation)
IAS 38 – ‘Intangible assets’
Intangible assets – goodwill a) - 1,039
               Intangible assets – other b) - (362)
IAS 12 – ‘Income taxes’
Deferred tax on intangibles c) - 109
N e t	a s s e t s	a n d	e q u i t y	u n d e r	I F R S 8,407 20,690
N o t e s	t o	t h e	R e c o n c i l i a t i o n s	o f	E q u i t y
a) Under IAS 38 Intangible Assets should not incur an amortisation charge, but should be subject to an annual impairment review.  As a result 
of this the intangible assets have been increased by the amortisation charge incurred, which at 31 October 2007 was £1,439,000.  This has 
been offset by an impairment charge of £400,000.
b) The Group acquired CAPS Solutions Limited on 7 June 2007.  Application of IFRS 3 to this business combination resulted in identification of 
intangible assets, being customer relationships, trade names and software. Under IFRS these have been recognised separately in the balance 
sheet at their fair value at the date of acquisition. Under UK GAAP these intangible assets were subsumed within goodwill. The result of this 
adjustment is to decrease goodwill and increase intangible assets at the date of combination. At 31 October 2007 the value of intangible 
assets were increased by £11,410,000. A corresponding decrease in goodwill was also taken in the same period. The intangible assets are 
being amortised between 10 and 20 years. This has resulted in a charge for the period 31 October 2007 of £362,000.
c) As part of the fair value adjustment to intangibles a deferred tax liability was created which increases the value of the amount attributable 
to goodwill.  The amortisation charge for the year has resulted in a release of this deferred tax charge.
There are no material differences in the cash flow statement between that presented under IFRS and as previously presented under UK GAAP.
For the year ended 31 October 2008 57 IDOX plc Annual Report and Accounts 2008
R e p o r t	o f	t h e	I n d e p e n d e n t	a u d i t o r s	
t o	t h e	m e m b e r s	o f	ID O X	p l c
We have audited the parent company financial statements of IDOX plc for the year ended 31 October 2008 which comprise the accounting 
policies, the balance sheet and notes 1 to 12. These parent company financial statements have been prepared under the accounting policies 
set out therein. 
We have reported separately on the group financial statements of IDOX plc for the year ended 31 October 2008. 
This report is made solely to the company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work 
has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s 
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 
company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
R e s p e c t i v e	r e s p o n s i b i l i t i e s	o f	d i r e c t o r s	a n d	a u d i t o r s
The directors’ responsibilities for preparing the Annual Report, and the parent company financial statements in accordance with United 
Kingdom law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the 
Statement of Directors’ Responsibilities. Our responsibility is to audit the parent company financial statements in accordance with relevant 
legal and regulatory requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the parent company financial statements give a true and fair view and whether the parent 
company financial statements have been properly prepared in accordance with the Companies Act 1985. We also report to you whether in 
our opinion the Directors’ Report is consistent with the parent company financial statements.  The information given in the Directors’ Report 
includes that specific information presented in Chairman’s Statement and Chief Executive’s Report that is cross referred from the Business 
Review section of the Directors’ Report.
In addition we report to you if, in our opinion, the company has not kept proper accounting records, if we have not received all the 
information and explanations we require for our audit, or if information specified by law regarding directors’ remuneration and other 
transactions is not disclosed. 
We read other information contained in the Annual Report and consider whether it is consistent with the audited parent company financial 
statements. This other information comprises only the Chairman’s Statement, Chief Executive’s Report, the Board of Directors, the Directors’ 
Report, the Remuneration Report, the Corporate Governance Report, and the Report of the Audit Committee.  We consider the implications 
for our report if we become aware of any apparent misstatements or material inconsistencies with the parent company financial statements. 
Our responsibilities do not extend to any other information.
B a s i s	o f	a u d i t	o p i n i o n
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An 
audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the parent company financial statements.  
It also includes an assessment of the significant estimates and judgments made by the directors in the preparation of the parent company 
financial statements, and of whether the accounting policies are appropriate to the company’s circumstances, consistently applied and 
adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide 
us with sufficient evidence to give reasonable assurance that the parent company financial statements are free from material misstatement, 
whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of 
information in the parent company financial statements 
Opinion
In our opinion:
•	 t h e	p a r e n t	c o m p a n y	fi n a n c i a l	s t a t e m e n t s	g i v e	a	t r u e	a n d	f a i r	v i e w ,	i n	a c c o r d a n c e	w i t h	U n i t e d	K i n g d o m	G e n e ra ll y	A c c e p t e d	A c c o u n t i n g	
Practice, of the state of the company’s affairs as at 31 October 2008; 
•	 t h e	p a r e n t	c o m p a n y	fi n a n c i a l	s t a t e m e n t s	h a v e	b e e n	p r o p e r l y	p r e p a r e d	i n	a c c o r d a n c e	w i t h	t h e	C o m p a n i e s	A c t	1 9 8 5 ;	a n d	
•	 t h e	i n f o r m a t i o n	g i v e n	i n	t h e	D i r e c t o r s ’	R e p o r t	i s	c o n s i s t e n t	w i t h	t h e	fi n a n c i a l	s t a t e m e n t s .
 
GRANT THORNTON UK LLP 
REGISTERED AUDITOR 
CHARTERED ACCOUNTANTS
LONDON 
22 January 2009 58 IDOX plc Annual Report and Accounts 2008
C o m p a n y	Ba l a n c e	S h e e t
Note 2008 2007
£000 £000
F i x e d	a s s e t s
Investments 5 33,448 27,828
C u r r e n t	a s s e t s
Debtors 6 419 902
C r e d i t o r s :	a m o u n t s	f a l l i n g	d u e	w i t h i n	o n e	y e a r					 7 (8,271) (1,124)
Net current (liabilities) (7,852) (222)
t o t a l	a s s e t s	l e s s	c u r r e n t	l i a b i l i t i e s 25,596 27,606
C r e d i t o r s :	a m o u n t s	f a l l i n g	d u e	a f t e r	m o r e	t h a n	o n e	y e a r 8 (5,696) (6,611)
N e t	a s s e t s 19,900 20,995
C a p i t a l	a n d	r e s e r v e s
Called up share capital 9 3,442 3,420
Capital redemption reserve 11 1,112 1,112
Share premium account 11 9,883 9,706
Share option reserve 11 364 359
Profit and loss account 11 5099 6,398
S h a r e h o l d e r s ’	f u n d s 19,900 20,995
The financial statements were approved by the Board of Directors and authorised for issue on 22 January 2009 and are signed on its behalf 
by:
M a r t i n	B r o o k s	 	 	 	 	 	 	 	 	 R i c h a r d	k e l l e t t - C l a r k e
Chairman              Chief Executive 
The accompanying accounting policies and notes form an integral part of these accounts.
At 31 October 2008 59 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
N o t e s	t o	t h e	C o m p a n y	F i n a n c i a l	S t a t e m e n t
1 	a C CO u N t I N G 	 P O l I C I E S
B a s i s	o f	p r e p a r a t i o n
The accounts have been prepared in accordance with applicable United Kingdom accounting standards and under the historical cost 
convention.
No profit and loss account is presented for the Company as permitted by s230(4) of the Companies Act, 1985.
I nves t m e nt s
Investments, held as non-current assets, are included at cost less amounts written off for any permanent diminution in value.
F R S	2 0	S h a r e	B a s e d	P a y m e n t
All share-based payment arrangements granted after 7 November 2002 that had not vested prior to 1 November 2006 are recognised in the 
financial statements.
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values.  Where employees 
are rewarded using share-based payments, the fair values of employees’ services are determined indirectly by reference to the fair value 
of the instrument granted to the employee.  This fair value is appraised at the grant date and excludes the impact of non-market vesting 
conditions (for example, profitability and sales growth targets).
All equity-settled share-based payments are ultimately recognised as an expense in the profit and loss account with a corresponding credit to 
profit and loss reserves.
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best available 
estimate of the number of share options expected to vest.  Estimates are revised subsequently if there is any indication that the number 
of share options expected to vest differs from previous estimates.  Any cumulative adjustment prior to vesting is recognised in the current 
period. No adjustment is made to any expense recognised in prior periods if share options that have vested are not exercised.
Upon exercise of share options, the proceeds received net of attributable transaction costs are credited to share capital, and where 
appropriate share premium.
D e f e r r e d	t a x a t i o n
Deferred tax is recognised on all timing differences where the transactions or events that give the Group an obligation to pay more tax in the 
future, or a right to pay less tax in the future, have occurred by the balance sheet date.  Deferred tax assets are recognised when it is more 
likely than not that they will be recovered.  Deferred tax is measured using rates of tax that have been enacted or substantively enacted by 
the balance sheet date.
C o n t r i b u t i o n s	t o	d e fi n e d	c o n t r i b u t i o n	p e n s i o n	s c h e m e s
Contributions paid to private pension plans of certain employees are charged to the profit and loss account in the period in which they 
become payable. Contributions paid to the group personal pension plans of employees are charged to the profit and loss account in the 
period in which they become payable.
F i n a n c i a l	i n s t r u m e n t s
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity 
instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those 
financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains  60 IDOX plc Annual Report and Accounts 2008
N o t e s 	 t o 	 t h e 	 C o m p a n y 	 F i n a n c i a l 	 S t a t e m e n t 	 c o n t ’ d
or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant 
rate of return on the outstanding liability.
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an 
equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
The Group uses derivatives financial instruments to manage exposures to fluctuations in interest rates. Interest and expenditure arising on 
financial instruments is recognised on the accruals basis and credited or charged to the profit and loss account in the financial period to 
which it relates. The Group does not apply FRS 26.
Operating leases
Amounts paid under operating leases are charged to the profit and loss account on a straight line basis over the lease term.
2 	 D I R E C t O R S 	a N D 	 E M P l Oy E E S
There are no wages and salaries paid by the parent company.
The company has no employees and directors are remunerated by other group companies.  Details of the remuneration for each director are 
included in the remuneration report which can be found on page 15 but which do not form part of the audited accounts.
3 	D I v I D E N D S
2008 2007
£000 £000
Final dividend paid in respect of the year ended 31 October 2007 and 31 October 2006 343 108
Pence per ordinary share 0.1p 0.05p
Final dividend proposed in respect of the year ended 31 October 2008 and 31 October 2007 396 343
Pence per ordinary share 0.115p 0.1p
4 	l O S S 	 F O R 	t h E 	 F I N a N C I a l	y E a R
The parent company has taken advantage of section 230 of the Companies Act 1985 and has not included its own profit and loss account in 
these financial statements.  The parent company’s loss for the year was £1,059,000  (2007:loss £505,000).
For the year ended 31 October 2008 61 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
N o t e s 	 t o 	 t h e 	 C o m p a n y 	 F i n a n c i a l 	 S t a t e m e n t 	 c o n t ’ d
5 	 I N v E S t M E N t S
Shares in 
group 
undertakings
£000
Cost
At 1 November 2007 29,428
Additions 5,620
At 31 October 2008 35,048
Amounts written off
At 1 November 2007 1,600
Provided in the year -
At 31 October 2008 1,600
Net book amount
At 31 October 2008 33,448
At 31 October 2007 27,828
At 31 October 2008 the company held more than 10% of the allotted share capital of the following companies:
Country of 
registration
Class of 
share held 
Proportion 
held Nature of business
IDOX Software Limited  
(formerly i-documentsystems Limited)
England Ordinary 100% Software services
IDOX Information Services Limited England Ordinary 100% Information services
TFPL Limited England Ordinary 100% Information services
CAPS Solutions Limited England Ordinary 100% Dormant company
i-documentsystems Trustees Limited England Ordinary 100% Corporate trustee of Employee share ownership trust
i-documentsystems Limited  
(formerly IDOX Software Limited) 
England Ordinary 100% Dormant company
Information into Intelligence Limited England Ordinary 100% Dormant company
The Planning Exchange Limited England Ordinary 100% Dormant company
Nettgain Solutions Limited England Ordinary 100% Dormant company
Mandoforms Limited England Ordinary 100% Dormant company
Plantech Limited England Ordinary 100% Software Services
Wastedocs Limited Scotland Ordinary 100% Dormant company
All subsidiaries have been consolidated in the Group accounts. 62 IDOX plc Annual Report and Accounts 2008
N o t e s 	 t o 	 t h e 	 C o m p a n y 	 F i n a n c i a l 	 S t a t e m e n t 	 c o n t ’ d
6 	 D E B t O R S
2008 2007
£000 £000
Amounts owed by group undertakings 419 653
Deferred tax asset - 249
419 902
Included in the above for the company is £419,000 (2007: £653,000) which is due after more than one year. The directors consider this loan to 
be recoverable.
7 	 C R E D I t O R S : 	a M O u N t S 	 Fa l l I N G 	 D u E 	 W I t h I N 	 O N E 	y E a R
2008 2007
£000 £000
Bank loan 1,000 1,000
Amounts owed to group undertakings 7,234 -
Accruals and deferred income 37 124
8,271 1,124
8 	 C R E D I t O R S : 	a M O u N t S 	 Fa l l I N G 	 D u E 	a F t E R 	 M O R E 	t h a N 	 O N E 	y E a R
2008 2007
£000 £000
Bank loan 5,696 6,611
As security for the above loans, the Bank of Scotland holds a floating charge over the assets of the Group, a composite guarantee supported 
by each Group company and a share pledge in respect of the entire issued share capital of each subsidiary company.
The loans are repayable in six monthly instalments. Interest on the loans is payable quarterly in arrears.  
9 	 S h a R E 	 C a P I ta l
2008 2007
£000 £000
Authorised:
650,000,000 ordinary shares of 1p each (2007: 650,000,000) 6,500 6,500
Allotted, called up and fully paid
As at 1 November 3,420 1,953
Issue of share capital 22 1,467
344,158,366 ordinary shares of 1p each (2007: 341,927,567) 3,442 3,420
For the year ended 31 October 2008 63 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
N o t e s 	 t o 	 t h e 	 C o m p a n y 	 F i n a n c i a l 	 S t a t e m e n t 	 c o n t ’ d
M o v e m e n t	i n	I s s u e d	S h a r e	C a p i t a l	i n	t h e	y e a r
During the year to 31 October 2008, 2 employees exercised share options.  On 24 December 2007, 1,230,769 share options were exercised and 
on 24 June 2008, 1,000,000 share options were exercised (see note 10 for further details).  Both share issues occurred at nominal value.
 
The company has one class of ordinary shares which carry no right to fixed income.
1 0 	 S h a R E 	 O P t I O N S	 	 	
The company has a share option scheme for all employees (including directors). Details of all share options over 1p Ordinary shares, including 
their contractual life and exercise prices are as follows:
At start of year
Granted during 
year Exercised Lapsed in year At end of year Exercise price
Exercise date 
from Exercise date to
1,500,000 - - - 1,500,000 12.75p Nov 2001 Jun 2010
166,667 - - - 166,667 12.00p Dec 2003 Dec 2013
1,666,667 - - - 1,666,667 12.00p Jun 2002 Dec 2012
645,159 - - - 645,159 15.50p Jul 2004 Jul 2014
516,129 - - - 516,129 15.50p Jan 2003 Jul 2013
1,032,258 - - - 1,032,258 15.50p Oct 2004 Feb 2015
1,863,636 - - - 1,863,636 11.00p Apr 2004 Oct 2012
173,913 - - - 173,913 11.50p Oct 2006 Oct 2016
5,000,000 - (1,000,000) - 4,000,000 10.00p Sep 2004 May 2014
4,500,000 - - - 4,500,000 6.50p Feb 2007 Oct 2011
4,500,000 - - - 4,500,000 9.00p Feb 2007 Oct 2014
1,500,000 - - - 1,500,000 7.50p May 2007 Feb 2013
266,000 - - - 266,000 7.50p May 2007 May 2013
900,000 - - - 900,000 7.50p May 2007 May 2017
1,019,231 - - (1,019,231) - 8.13p Jun 2007 Dec 2007
1,846,154 - (1,230,769) - 615,385 8.13p Jun 2007 Oct 2014
2,250,000 - - (2,250,000) - 11.13p Jun 2007 Apr 2008
- 550,000 - - 550,000 15.00p Dec 2007 Jun 2011
- 960,000 - - 960,000 12.50p May 2008 May 2018
- 1,192,308 - - 1,192,308 13.00p Aug 2008 Aug 2014
- 1,033,334 - - 1,033,334 15.00p Aug 2008 Aug 2014
29,345,814 3,735,642 (2,230,769) (3,269,231) 27,581,456
E q u i t y	s e t t l e d	s h a r e	b a s e d	p a y m e n t s	
All share options are exercisable at a price equal to the average market price of the company’s shares on the date of grant. The vesting period 
is usually 1 to 3 years. The options are settled in equity once exercised.  Only those share options that were issued in the current  and prior 
years come within the measurement and recognition criteria of “FRS 20 (IFRS 2) Share Based Payments.”   64 IDOX plc Annual Report and Accounts 2008
N o t e s 	 t o 	 t h e 	 C o m p a n y 	 F i n a n c i a l 	 S t a t e m e n t 	 c o n t ’ d
For those share options outside the measurement and recognition criteria of “FRS 20 (IFRS 2) Share Based Payments” the table below 
summarises the number of these share options and the associated weighted average exercise price (WAEP) outstanding during the year.
2008 2007
    WAEP    WAEP
No Pence No pence
Outstanding at the beginning of the year 12,564,429 11.75 12,564,429 11.75
Granted during the year - - - -
Exercised during the year (1,000,000) 10.00 - -
Forfeited during the year - - - -
Expired during the year - - - -
Outstanding at the end of the year 11,564,429 11.75 12,564,429 11.75
Exercisable at the end of the year 11,564,429 11.75 12,564,429 11.75
For those share options within the measurement and recognition criteria of “FRS 20 (IFRS 2) Share Based Payments” the following table sets 
out the number of share options and associated WAEP outstanding during the year.
2008 2007
    WAEP    WAEP
No Pence No pence
Outstanding at the beginning of the year 16,781,385      8.22 - 8.22
Granted during the year 3,735,642 - 16,831,385 -
Exercised during the year (1,230,769) 8.13 - -
Forfeited during the year (3,269,231) 9.25 - -
Expired during the year - - (50,000) 7.50
Outstanding at the end of the year 16,017,027 8.13 16,781,385 8.22
Exercisable at the end of the year 11,564,429 11.75 16,781,385 8.22
The above share options outstanding at the end of the year have a weighted average remaining contractual life of 3.5 years.  The fair values 
are calculated using the Black-Scholes Pricing Model and the following information.
During the year the following options were granted:
Date of 
issue
Number granted
Weighted 
average share 
price
Weighted 
average exercise 
price
Expected 
volatility
Expected 
life
Risk free 
rate
Expected 
dividend 
yield
Weighted 
average fair 
value at grant 
date
No. pence pence % Years % % £
2 0 07 :
Feb 07 4,500,000 6.50 6.50 48.00 3.5 4.25 0.6 0.03
Feb 07 4,500,000 6.50 9.00 48.00 3.5 4.25 0.6 0.03
May 07 2,716,000 7.50 7.50 48.00 3.5 4.25 0.6 0.03
Jun 07 2,865,385 8.13 8.13 48.00 3.5 4.25 0.6 0.03
Jun 07 2,250,000 11.13 11.13 48.00 3.5 4.25 0.6 0.03
For the year ended 31 October 2008 65 IDOX plc Annual Report and Accounts 2008
For the year ended 31 October 2008
N o t e s 	 t o 	 t h e 	 C o m p a n y 	 F i n a n c i a l 	 S t a t e m e n t 	 c o n t ’ d
Date of 
issue
Number granted
Weighted 
average share 
price
Weighted 
average exercise 
price
Expected 
volatility
Expected 
life
Risk free 
rate
Expected 
dividend 
yield
Weighted 
average fair 
value at grant 
date
No. pence pence % Years % % £
20 0 8 :
Dec 07 550,000 8.00 8.00 48.00 3.5 5.00 0.6 0.03
May 08 960,000 12.50 12.50 48.00 3.5 5.00 0.6 0.05
Aug 08 1,192,308 13.00 13.00 48.00 3.5 5.00 0.6 0.06
Aug 08 1,033,334 13.00 15.00 48.00 3.5 5.00 0.6 0.05
Expected volatility was determined by calculating the historical volatility of the company’s share price over the previous 3 years. The 
expected life used in the model has been adjusted, based on the management’s best estimate, for the effects of non-transferability, exercise 
restrictions and behavioural considerations. These share options have been limited to employees of subsidiary companies of IDOX plc.  
As such, share option expenses of £108,000 (2007: £359,000) have been added to the cost of investments in the parent company.
1 1 	 S h a R E 	 P R E M I u M 	a C CO u N t	a N D 	 R E S E R v E S
Capital
redemption 
reserve
Share premium 
account
Share 
option
reserve
Profit and loss 
account Total
The company £000 £000 £000 £000 £000
At 1 November 2007 1,112 9,706 359 6,398 17,575
New share issue (see note 9) - 177 - - 177
Transfer on exercise of share options - - (103) 103 -
Share option grants - - 108 - 108
Dividends paid - - - (343) (343)
Loss for the year - - - (1,059) (1,059)
At 31 October 2008 1,112 9,883 364 5,099 16,458
The capital redemption reserve for the Group and the Company was created during 2003 when the entire deferred ordinary share capital was 
bought in exchange for one ordinary share. Other reserves relate to the issued share capital and share premium account in the Company’s 
subsidiary undertaking, Idox Software Limited, and has been treated in accordance with FRS 6 under merger accounting. The share options 
reserve represents shares to be issued on potential exercise of those share options tht have been accounted for under FRS20 (IFRS2) Share 
Based Payments.
1 2 	 R E C O N C I l I a t I O N 	 O F 	 M O v E M E N t S 	 I N 	 S h a R E h O l D E R S ’ 	 F u N D S	
2008 2007
£000 £000
Loss for the financial year (1,059) (505)
Dividends paid (343) (108)
Shares issued 199 11,000
Share issue costs - (647)
Share option reserve 108 359
Net (decrease)/increase in shareholders’ funds (1,095) 10,099
Shareholders’ funds at 1 November 2007 20,995 10,896
Shareholders’ funds at 31 October 2008 19,900 20,995 66 IDOX plc Annual Report and Accounts 2008
so ftw are i n f o r m a t i o n	s e r v i c e s m a n a g e d	s e r v i c e s
Local government is IDOX Software’s 
key market, whether installed in land, 
property and revenues & benefits 
departments as well as on an enterprise-
wide basis.  Our broadening range 
of software and services is providing 
solutions and growth in:
•	 P l a n n i n g
•	 B u il d i n g	C o n t r o l
•	 R e v e n u e s	&	B e n e fi t s
•	 S o c i a l	S e r v i c e s
•	 E nv i r o n m e n t a l	H e a l t h
•	 P u b li c	S e c t o r	H o u s i n g
•	 L a n d	C h a r g e s
•	 T ra d i n g	S t a n d a r d s
•	 L i c e n s i n g
•	 E s t a t e s	M a n a g e m e n t
•	 C o n t a m i n a t e d	L a n d
IDOX Software comprises of a number 
of web and database applications 
including Case Management, Document 
Management, Records Management, 
Knowledge Management, Workflow, Web 
Access, Online XML Forms, XML Services, 
Management Reporting and Mobile, 
developed on an open platform capable 
of  being installed independently and/or 
integrated with other in-house or third 
party systems.
The acquisition of Plantech adds 
capabilities in local authority performance 
management.
IDOX operates the most comprehensive 
information service on all aspects of 
policy and practice in local government  in 
the United Kingdom. This encompasses 
everything from forward planning 
and development control issues to the 
modernisation agenda, from economic 
development to lifelong learning and 
from social inclusion issues to health and 
housing.  It is widely used by researchers, 
policy makers and practitioners in 
local and central government, regional 
development agencies, consultancies and 
local regeneration bodies.  Thousands of 
articles from over 500 professional journals 
are available electronically searchable by 
keyword and abstract. 
The service also manages specialist 
electronic ‘reading rooms’ and 
content management solutions for 
government and NGOs to facilitate better 
communication and to form electronic 
communities of interest.  Examples include 
reading rooms on labour market research 
and evaluations of economic development 
projects. 
IDOX continues to work in partnership 
with its local authority clients extending its 
Managed Services expertise. UKPlanning 
delivers Planning & Building Control 
departments with a cost effective, efficient 
and risk free means of administering 
applications and realising e-Planning 
targets quickly. Applications are scanned 
and indexed, or completed online, and 
published on the council’s websites and 
www.UKPlanning.com for public review 
and comment.
Unity provides an offsite fully managed 
and resilient UNI-form Case Management 
system to local authorities ensuring 24 
by 7 by 365 availability at a lower cost to 
in-house alternatives.
ID O X	p l c	S o f t w a r e	a n d	S e r v i c e s	a t	a	g l a n c e 67 IDOX plc Annual Report and Accounts 2008
cons u lt anc y recrui tmen t training
Our experienced consultancy team works 
with management in the public and 
private sectors in all areas of records 
management, content management, 
knowledge management and library 
and information services. We help 
organisations to share their knowledge 
and information to become more effective 
in the flexible ways that they work.
We work in partnership with clients 
and software providers and systems 
integrators.
We provide advice on the current state of 
clients’ information and knowledge assets 
and offer strategic guidance on future 
directions.  This includes design policies 
and procedures, information architectures, 
taxonomies and metadata frameworks, 
implementation, data migration and 
project management expertise.
TFPL recruitment services include 
the UK and international placement 
of permanent, interim and contract 
personnel for a range of positions 
requiring information, knowledge, records 
and web content management expertise.  
Increasingly there are also requests for the 
supply of technology, change management 
and content management professionals.  
With the boundaries between information 
management and information technology 
becoming more blurred, we specialise 
in finding staff that bridge these multi-
disciplinary roles.
TFPL’s training team provides both public 
and in-house courses in:
•	 K n o w l e d g e	m a n a g e m e n t
•	 I n f o r m a t i o n	a r c h i t e c t u r e	&	t a xo n o m y
•	 C o n t e n t	m a n a g e m e n t
•	 R e c o r d s	m a n a g e m e n t
•	 L i b ra r y	&	i n f o r m a t i o n	m a n a g e m e n t	
services
We develop bespoke awareness and 
learning programmes for our clients. 68 IDOX plc Annual Report and Accounts 2008
S e c r e t a r y	a n d	R e g i s t e r e d	O f fi c e :
N o m i n a t e d	a d v i s o r	a n d	B r o k e r :
a u d i t o r s :
C o r p o r a t e	S o l i c i t o r s :
R e g i s t ra r s :
C o m p a n y	R e g i s t r a t i o n	N u m b e r :
F i n a n c i a l	C a l e n d a r :
D J McNicol
2nd Floor
160 Queen Victoria Street
London EC4V 4BF
Noble & Company Limited
120 Old Broad Street
London EC2N 1AR
Grant Thornton UK LLP
Grant Thornton House
Melton Street
Euston Square
London NW1 2EP
Memery Crystal
44 Southampton Buildings
London WC2A 1AP
Share Registrars Limited
Suite E, 1st Floor
9 Lion and Lamb Yard
Farnham
Surrey GU9 7LL
3984070
Annual General Meeting - 26 February 2009
Announcement of 2009 Interim Results - June 2009
Announcement of 2009 Annual Report - December 2009
C o m p a n y	I n f o r m a t i o n  2nd Floor
160 Queen Victoria Street
London
EC4V 4BF
T  0870 333 7101
F  0870 333 7131
E  info@IDOXplc.com
www.IDOXplc.com
Tontine House
8 Gordon Street
Glasgow
G1 3PL
T  0870 333 7101
F  0141 574 1901
IDOX plc
Benham Valence
Newbury
Berkshire
RG20 8LU
T  01635 565900
F  01635 565901