LTG Technologies PLC
Annual Report and Accounts 2004
LTG Technologies PLC
c/o Imagelinx
Julias Way
Station Park
Lowmoor Road
Kirkby-in-Ashfield
Nottinghamshire NG17 5HN
www.ltg-technologies.com
LTG Technologies PLC Annual Report and Accounts 2004
_cover.qxd  24/03/2005  16:50  Page 1 LTG Technologies PLC is a listed company on the London
Stock Exchange and the Group comprises two specialist
divisions delivering services and products to the global
packaging industry.
1 Group financial highlights
2 Chairman’s statement
3 Chief Executive’s review
6 Financial review
10 Operational review: Imagelinx
12 Operational review: LTG Mailänder
14 Board of Directors
16 Directors’ report
18 Statement of Directors’ responsibilities in respect
of the accounts
19 Corporate governance
22 Directors’ remuneration report
25 Independent auditors’ report 
26 Group profit and loss account
27 Group statement of total recognised gains and losses
27 Reconciliation of movements in shareholders’ funds
28 Group balance sheet
29 Company balance sheet
30 Group cash flow statement
30 Reconciliation of net cash flow
to movement in net debt
31 Notes to the accounts
52 Notice of Annual General Meeting
53 Officers and advisers
 the LTG Mailänder division is a worldwide systems supplier and
manufacturer of the components for a complete production
line in metal decoration.
 Imagelinx is a packaging graphics service provider to
branded goods companies, delivering a global solution for the
accurate and consistent translation of creative content into
printed packaging.
T HE D ESIGN P ORTFOLIO
a member of the flathill communications group plc
www.flathillplc.com
designed & produced by
53 
Officers and advisers
Registered no:
3567041
Directors
David Straker-Smith
Non-executive Chairman
Albert Kenngott Klein
Chief Executive
Michael Williamson
Finance Director
Dr Ing Peter Elmar Heizmann
Non-executive Director
Dr Franz Wimpffen
Non-executive Director
John Holmes
Non-executive Director
Alistair Rae
Non-executive Director
Gregor Wedell
Non-executive Director
Company Secretary
Michael Williamson
Auditors
BDO Stoy Hayward LLP
8 Baker Street
London W1U 3LL
Bankers
Landesbank Baden-Württemberg
Am Hauptbahnhof 2
70137 Stuttgart
Germany
HSBC Bank PLC
110 Grey Street
Newcastle upon Tyne NE1 6JG
Royal Bank of Scotland
PO Box 7895
Nottingham NG1 7ZS
Financial adviser and broker
Seymour Pierce Limited
Bucklersbury House
3 Queen Victoria Street
London EC4N 8EL
Solicitors
Maclay Murray & Spens, London
5 Old Bailey
London EC4M 7JX
Registrars
Capita Registrars
Northern House
Woodsome Park
Fenay Bridge
Huddersfield HD8 0LA
Registered office
c/o Imagelinx
Julias Way
Station Park
Lowmoor Road
Kirkby-in-Ashfield
Nottinghamshire NG17 5HN
_cover.qxd  24/03/2005  16:50  Page 2 1 
Group financial highlights
LTG Technologies PLC Annual Report and Accounts 2004 
Group results highlights
2004 2003
£m £m
Sales 55.6 58.8
Operating loss before operating exceptional items
and goodwill amortisation — (2.9)
Operating exceptional items:
Capitalised expenditure written-down (0.7) (5.6)
Other operating exceptional items (1.0) (0.8)
Goodwill amortisation (0.6) (0.6)
Operating loss (2.3) (9.9)
Exceptional items — 0.1
Net interest (0.8) (0.8)
Loss before tax (3.1) (10.6)
Group highlights
 The Group has achieved break even in 2004 at the operating level (operating results before goodwill amortisation
and operating exceptional items) compared to an operating loss from continuing operations of £3.3m in 2003. 
 Loss before tax reduced to £3.1m versus £10.6m in 2003 due to improved operating results and lower operating
exceptional items (£1.7m versus £6.4m in 2003).
 Sales from continuing operations of £55.6m represent a 1% reduction at constant exchange rates
(2003: £57.2m sales at actual rates).
Imagelinx 
Operating at break even level in second half on
sales of £4.0m following successful restructuring.
Operating loss before operating exceptional items
and goodwill amortisation reduced to £1.5m
(2003: £3.0m). Operating exceptional items
of £1.8m (2003: £6.2m).
New clients such as Diageo and Procter & Gamble
Hair Coloration have already impacted sales growth
in the second half of 2004. Other clients such as
Colgate-Palmolive Household Care Europe now
coming on-line. 
Sales at constant exchange rates were £7.7m versus
£8.1m in 2003: increasing sales to consumer goods
companies offset by the decline in sales to packaging
companies for pre-press services (sales at actual
exchange rates £7.3m).
LTG Mailänder
 Markets have recovered from low demand in
2002/2003, demonstrated by full year order intake
of £49.8m versus £35.5m. 
 New Sprint coating technology introduced – offering
a major market opportunity for this division. 
 Sales of £48.2m (2003: £49.0m) despite first half sales
being down significantly (first half 2004: £16.6m;
first half 2003: £22.9m).
 Order book at 28 February 2005 of £24.7m underpins
2005 sales (representing 52% of 2004 sales).
Order book at 28 February 2004 was £23.2m
(equal to 48% of 2004 sales).
 Despite pricing pressures on Sprint high technology
printing contracts, gross margin percentage at 27.2%
versus 28.6% in 2003, reducing operating profit to
£1.4m (2003: at constant exchange rates and
management charges £1.7m; 2003 actual: £1.9m).
_0LTG_2004arf.qxd  24/03/2005  16:49  Page 1  2
Chairman’s statement
 LTG Technologies PLC Annual Report and Accounts 2004
I am pleased to report on a year of further improvement within
LTG Technologies PLC. Most importantly in the second half of
the last year we traded profitably, having reduced the losses in
the Group for the second year in succession. In Imagelinx, an
impressive client list has been developed, generating increasing
sales, and the division’s cost base has been reduced substantially
over the last two years. As a result, it is anticipated that this
division should trade profitably from now on. LTG Mailänder has
continued to be profitable and maintained its leading position
in an overall more favourable market. 
Group losses in 2004 were lower at the pre tax level at £3.1m
against £10.6m in 2003 and £18.6m in 2002. Operating losses
from continuing operations and before operating exceptional
items and goodwill were reduced to £Nil versus £3.3m in 2003
and £8.4m in 2002. These results clearly demonstrate the effects
of the restructuring and reorganisation of our operations,
in particular in Imagelinx, which has resulted in a reduction
in losses, with continuing sales success in both our divisions.
Group sales from continuing operations were £55.6m in 2004
versus £57.3m for 2003 a decline of 3%. If the effects of
exchange rates are excluded, sales for 2004 were 1% lower than
2003. This does not reflect the strongly increased order intake
of LTG Mailänder improving the order book at the end of the
year and the increasing contribution of important new clients
to the sales of Imagelinx. 
Imagelinx continued to develop its position in the packaging
graphics services market, gaining prestigious new clients such
as Diageo, Procter & Gamble and Colgate-Palmolive. We have
continued to restructure and reorganise to make the division
more cost effective. Sales declined 10% from £8.1m to £7.3m
of which 5% is the result of the decline of the US$ exchange
rate (2004: $1.83/£; 2003: $1.64/£). The reduction also stems
from the closure of three loss making facilities in the US which
resulted in a further decline of sales by 16%. Against this, sales
to consumer goods clients increased 11%. This is the area
where we want to see the division grow. 
In Imagelinx, we are also working on the implementation of our
advanced packaging graphics IT system called i-con. We are
continuing to release modules of the i-con system and expect
this system to make a significant positive impact on productivity
in 2006. This system has already been influential in winning a
major client.
Given that the 2003 order intake had been affected by adverse
market conditions, LTG Mailänder performed well in 2004 to
deliver an operating profit of £1.4m. The division continued to
experience strong demand for its conventional equipment and
also completed several large orders for the new Sprint technology.
Sales were 2% lower at £48.2m versus £49.0m in 2003.
Adjusted for exchange rates, sales were in line with 2003. Order
intake showed much stronger growth (£49.8m versus £35.5m
in 2003). As a result, the Company had an order book of
£24.7m at the end of February 2005 compared to £23.2m at
the end of February 2004. The bulk of these orders is expected
to be shipped in the first half of 2005 and represents 52% of
last year’s sales, an indication of the improvement of the market
and LTG Mailänder’s market position. We have seen increased
price competition in the market for high performance printing
machines, but we believe that despite this, we are operating
successfully in this market and protecting margins. 
The improved order book in LTG Mailänder at the end of the year
and the new business prospects for Imagelinx are expected to
provide sales growth for the Group in 2005. The cost reductions
and operational changes undertaken in 2003 and 2004 should
enable the Group and in particular the Imagelinx division to
grow efficiently and profitably. Investments will be made to
improve this operational effectiveness and to ensure the best
technologies are employed in the business. 
In 2005 we will operate with a smaller Board. There will be two
Executive Directors, Albert Klein as Chief Executive and Michael
Williamson as Finance Director, and six experienced Non-executives
including myself as Chairman. We retain Dr. Franz Wimpffen as a
Non-executive. He was previously an Executive Director responsible
for Business Development and has become Chief Executive
of LTG Holdings GmbH & Co. KG, our major shareholder. 
My colleagues and I offer our best wishes and gratitude to
Dr. Ing Peter Heizmann, who retires as Sales Director after 35
years’ service to LTG Mailänder, although he is also retained as
Non-executive Director. His commitment and professionalism
have been at the heart of the development and success of
LTG Mailänder for many years. His experience and knowledge
will be a great asset.
Last year, many Imagelinx employees had to leave the Company.
The Directors wish to express their regret for this, although it
was necessary to secure the future development of the business.
We wish everyone well.
It remains for me to express my personal gratitude to my
colleagues, the clients, employees and to the shareholders for
their continued support. The Group’s prospects for 2005 and
beyond are stronger than before as we continue to build upon
the work of the last two years. 
David Straker-Smith
Chairman
David Straker-Smith Chairman
In the second half of last year we traded profitably, having reduced the
losses in the Group for the second year in succession.
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LTG Technologies PLC Annual Report and Accounts 2004 
Overview
In 2004 we have concentrated our efforts upon re-focusing and
restructuring the Imagelinx division. At the same time we have
ensured that our LTG Mailänder division maintained the
leading position in its market. 
We have restructured and refocused Imagelinx. This has involved
senior management changes, restructuring in the UK and US,
closure of loss making operations which are not core to the
business and rationalisation of other loss making services.
The resulting reduction in the fixed cost base has allowed
Imagelinx to operate at break even in the second half of
2004 with sales of £4.0m. This level of sales does not include
significant contributions from important new clients such as
Colgate-Palmolive. They and other new clients are expected
to contribute to sales growth in 2005. 
LTG Mailänder has consolidated the efforts of prior years,
delivering sales in line with the prior year. Trading conditions
were more benign, this was demonstrated by higher order
intake rather than sales. First half year sales declined strongly
due to low order intake in 2003. Stronger competition for
our Sprint product line in the high end printing machines
market and increases in raw material costs have slightly
depressed gross margins, but strong control of operating
costs has allowed this division to remain profitable. A strong
order book and further cost reductions allow us to look towards
2005 with confidence.
Currency movements have had less of an effect than last year.
However, the weakness in the US Dollar relative to Sterling has
led to a 5% reduction in the Sterling value of Imagelinx sales
in 2004, relative to 2003. The value of the Euro relative to Sterling
reduced LTG Mailänder sales, but only by 2%. 
The table opposite shows the financial performance of the
two divisions on a basis which allows like for like comparison
between 2004 and 2003. The 2004 results are adjusted to 2003
exchange rates. The divisional results include continuing
operations only. The 2003 results are adjusted to reflect the
inclusion of management charges on the same basis as in 2004.
The commentary on the divisions’ performance following this
table is based upon this analysis. Finally, the division results are
reconciled with the Group’s audited consolidated results.
LTG Mailänder: 2004 market and performance,
key events and outlook
Market conditions were generally more benign than in 2003.
The absence of disastrous events like SARS and the higher
tolerance of moving exchange rates by our clients have improved
the investment climate. This resulted in strong orders and sales
of conventional printing equipment and our coating equipment. 
Demand for our Sprint high tech printing and coating
systems has recovered from low levels in 2002 and 2003.
In this market, we are, however, facing stronger price
competition. However, we believe that we offer superior
system technology incorporating advanced coating, drying,
sheet handling and pre-press technology besides high tech
printing. This gives us the lead in dealing with customers
who are quality and productivity conscious. For those clients
who prefer a low cost solution we now offer a simplified
Sprint printing machine. We therefore believe that we have
upheld our market share in the Sprint business and are
optimistic that this market will continue to provide us with
profitable sales. 
Chief Executive’s review
Albert Klein Chief Executive
Unaudited
Imagelinx LTG Mailänder Total
2004
(1)
2003
(3)
2004
(1)
2003
(3)
2004
(1)
2004 2003
(2)
£m £m £m £m £m £m £m
Sales 7.7 8.1 49.2 49.0 56.9 55.6 57.1
Gross margin 3.7 3.8 13.4 14.0 17.1 16.7 17.8
Gross margin % 48.1% 47.0% 27.2% 28.6% 30.0% 30.1% 31.2%
Operating costs (5.4) (7.2) (12.0) (12.3) (17.4) (16.9) (19.4)
Divisional operating 
profit/(loss) before operating
exceptional items and
goodwill amortisation (1.7) (3.3) 1.4 1.7 (0.3) (0.2) (1.6)
Operating exceptional items (1.8) (6.2) — (0.1) (1.8) (1.8) (6.3)
Divisional operating
profit/(loss) before
goodwill amortisation (3.5) (9.5) 1.4 1.6 (2.1) (1.9) (7.9)
Common costs 0.1 0.1 (1.7)
Foreign exchange gain 0.2 — —
Group operating 
exceptional items 0.1 0.1 (0.1)
Goodwill amortisation (0.6) (0.6) (0.6)
Operating loss – continuing (2.3) (2.3) (10.3)
Discontinued operations —— 0.4
Group operating loss (2.3) (2.3) (9.9)
(1) adjusted to 2003 exchange rates 
(2) continuing operations only 
(3) adjusted to include management charges to operating divisions in line with 2004 rates.
Group financial performance
_0LTG_2004arf.qxd  24/03/2005  16:49  Page 3  4
Chief Executive’s review cont…
 LTG Technologies PLC Annual Report and Accounts 2004
LTG Mailänder: 2004 market and performance,
key events and outlook cont…
Our new Sprint coating system is performing very well in pilot
sites and additional orders have been received. We are expecting
increasing sales from this technology.
Despite low sales in the first half, 2004 sales recovered to £49.2m
(2003: £49.0m). Conventional equipment sales have increased
by 9% to £36.4m (2003: £33.4m). The resulting sales have
offset lower Sprint sales of £10.7m (2003: £13.6m). 
At 28 February 2005 orders stood at £24.7m (Euros 34.9m),
compared to £23.2m (Euros 32.8m) at the end of 2003.
The bulk of these orders are expected to become sales in
the first half of 2005 and represent 52% of last year’s sales.
The Sprint order book stood at 58% of last year’s Sprint sales
indicating an increase in 2005.
Operating profit before operating exceptional items and goodwill
amortisation is £1.4m (2003: £1.7m). Costs have been controlled,
but pricing pressures and raw material cost increases have
reduced margins: at constant exchange rates the gross margin
percentage is down to 27.2% versus 28.6%. At constant
exchange rates, overheads have been contained at £12.0m
(2003: £12.3m). Headcount has remained constant at 338
employees, of which 321 are based in the headquarters of the
division in Stuttgart, Germany.
The outlook for LTG Mailänder is positive: a key industry event
“Met Pack” is to be held in Essen, Germany in April 2005.
This trade show takes place every three years and demand for
LTG Mailänder’s products usually increases following this event.
In addition to this, LTG Mailänder has started the year with
a healthy order book and will utilise manufacturing capacity
fully in the next six months. Despite the strong competition
to win Sprint orders we have secured new orders during 2004
and our expectation is to win further large orders in 2005 and
beyond. We are further looking to contain costs and continue
to seek efficiency improvements. The prospects for our
conventional equipment and Sprint business remain strong. 
The table opposite summarises the financial performance
of the division.
Imagelinx: 2004 performance, key events and outlook
Following the appointment of a new management team,
Imagelinx has been substantially restructured in 2004. We have
further reduced costs to be more in line with sales and ended
projects and operations that did not offer the prospect of
substantial returns. Headcount was reduced to 90 (2003: 112).
Adjusted for changes in the foreign exchange rates, gross margins
as a percentage of sales increased to 48.1% from 47% and
operating costs have been reduced by 24%. At constant exchange
rates, Imagelinx has seen its operating losses before operating
exceptional items and goodwill amortisation substantially reduced
to £1.7m compared to £3.3m in 2003. The company achieved
break even at the operating results level pre operating exceptional
items and goodwill amortisation in the second half of the year
on sales of £4.0m. 
We have written off a further £0.7m of capitalised expenditure
and incurred £1.1m exceptional expense during the restructuring,
mainly severance payments and site closure costs. 
Imagelinx sales at £7.3m are 10% lower than prior year
(2003: £8.1m). At constant exchange rates the fall is 5%.
The remaining 5% of the fall is the sum of two developments:
sales dropped 16% due to the closure of facilities and the
resulting reduction of business in the US. We have closed two
pre-press operations in Tallapoosa and Weirton. These facilities
were meant to provide growth in the business of providing
pre-press services to metal container manufacturers in the US.
They ended up being dedicated to the US Can Company
with whom Imagelinx had concluded a major pre-press
outsourcing agreement in 2001. For this and other reasons,
these facilities had no prospect of being run at satisfactory
capacity utilisation. Lack of utilisation was also the reason
for the closure of our Neenah facility dedicated to our
business with Kimberly Clark; and
sales grew 11% due to the increasing business with our
consumer goods clients (with the exception of Kimberly Clark).
The majority of this growth came from new clients.
We expanded our relationship with Procter & Gamble’s Hair
Coloration division from Europe into the US. For Diageo,
we are in the process of taking over the artwork and pre-press
management for a large number of major brands. Both of
these clients have increased sales significantly. Our latest large
client, Colgate-Palmolive, has recently started generating sales
but outside the period. Imagelinx operational performance
for these clients receives very favourable reviews, so that we
are confident contributions to growth from all these and other
new customers will be seen in 2005.
Within the i-con project we have released new modules, such
as Print Certification (“PSD”), which are now fully operational.
An advance version of Graphic Asset Management (“GAM”) has
been developed specifically for use with one client. Significant
steps have been taken to implement a portal for global internet
based access to all of Imagelinx systems and to move to an
advanced order handling and planning system. We are planning
the introduction of important new modules this year. 
We have ensured that the LTG Mailänder division maintained the
leading position in its market.
In 2004 we have concentrated our efforts on re-focusing and
restructuring the Imagelinx division.
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LTG Technologies PLC Annual Report and Accounts 2004 
The outlook for Imagelinx continues to be exciting. We believe
that large consumer goods companies are under increasing
pressure to reduce costs and complexity and focus upon their
core competencies. Imagelinx is receiving increasing interest
from consumer goods companies due to its print industry
expertise and use of new technology in the management
of artwork, reprography and digital files.
Imagelinx should see sales growth from the current existing and
new clients. Its cost base has been reduced and it aims to grow
and be profitable in 2005. 
The table opposite summarises the financial performance
of the division.
Funding and cash flow of the Group
The Group net cash inflow in 2004 was £5.6m (2003: £4.2m
outflow) resulting in a net indebtedness position at
31 December 2004 of £6.1m (2003: £6.1m). This net
inflow represents total outflows before financing of £1.4m
(2003: £4.7m), before the receipt of £1.5m for shares issued
(2003: £Nil), and £5.5m (2003: £0.5m) of net loans taken out.
The net indebtedness position remains unchanged from 2003,
as the loans were used to pay off £5.5m of overdraft.
The Group is experiencing increasing pressures on its working
capital position due to the unwillingness of LTG Mailänder
clients to fund projects with progress payments and due
to late payments of Imagelinx clients. Controls are in place
to manage these effects. However, during 2004 the Group’s
funding structure was adjusted to reflect new requirements.
The following developments took place:
 at the beginning of 2004, we had a working capital facility with
Landesbank Baden-Wurttenberg (“LBBW”) of Euro 8.25m
in the name of LTG Technologies PLC. This was renewable
every year and carried a high interest rate. It was replaced
with a Euro 8.118m facility in the name of LTG Mailänder.
The new loan is long term (repayable in six instalments
until 2010) and carries a reduced interest rate;
 other facilities totalling Euro 4.13m were arranged with
LBBW for LTG Mailänder’s increased working capital
requirements; and
 a £0.6m invoice discounting scheme in the name of
Imagelinx UK Limited was arranged with the Royal Bank
of Scotland (“RBS”). 
In January 2004 the Company completed the successful placing
of 11.5m shares, providing the Group with £1.475m (net of
issue costs) of capital for the completion of the i-con technology.
Management and staff
This year enormous efforts and commitment have been required
from employees across the Group. The significant dedication
of all employees to secure orders and ship them on time under
difficult conditions contributed to the LTG Mailänder division
maintaining its leading market position and remaining profitable.
Imagelinx has undertaken difficult restructuring and cost
cutting and at the same time won new customers. These
successes and changes could not have been achieved without
the commitment and effort of all the employees in the Group.
In Imagelinx, a significant number of employees had to leave
the company. We regret this but it was inevitable for the future
prosperity of the business. We thank everyone in the Group for
their contribution in the last year.
Albert Klein
Chief Executive
Financial performance by division
LTG Mailänder (continuing operations only)
2004 at Underlying 
2003 foreign % change
exchange 2004 v (at constant 
2004 rates 2003* 2003 exchange
Unaudited £m £m £m % change rates)
Sales 48.2 49.2 49.0 (2)% —
Gross margin 13.1 13.4 14.0 (6)% (4)%
Gross margin % 27.3% 27.2% 28.6%
Other operating expenses (11.7) (12.0) (12.3) (4)% (2)%
Operating profit before 
operating exceptional 
items and goodwill
amortisation 1.4 1.4 1.7 (17)% (16)%
Operating exceptional items —— (0.1) — —
Operating profit 
before goodwill amortisation 1.4 1.4 1.6 (11)% (10)%
* 2003 has been adjusted to include management charges to operating divisions in line with 2004 rates.
Imagelinx 
2004 at Underlying 
2003 foreign % change 
exchange 2004 v (at constant 
2004 rates 2003* 2003 exchange 
Unaudited £m £m £m % change rates)
Sales 7.3 7.7 8.1 (10)% (5)%
Gross margin 3.6 3.7 3.8 (7)% (3)%
Gross margin % 49.0% 48.1% 47.0%
Other operating expenses (5.1) (5.4) (7.2) (29)% (24)%
Operating loss before 
operating exceptional items 
and goodwill amortisation (1.5) (1.7) (3.3) (54)% (49)%
Operating exceptional items (1.8) (1.8) (6.2) (71)% (70)%
Operating loss before 
goodwill amortisation (3.3) (3.5) (9.5) (65)% (63)%
* 2003 has been adjusted to include management charges to operating divisions in line with 2004 rates.
_0LTG_2004arf.qxd  24/03/2005  16:49  Page 5  6
Financial review
 LTG Technologies PLC Annual Report and Accounts 2004
Results summary 
The Group delivered improved results in 2004. The loss before
tax for 2004 was £3.1m (2003: £10.6m). The loss per share was
1.32p (2003: loss per share of 4.72p). The Group reduced the
operating loss before operating exceptional items and goodwill
amortisation to £21,000 (2003: £2.9m). Continuing operations
for the LTG Mailänder division contributed an operating profit
before operating exceptional items and goodwill amortisation
of £1.4m (2003: £1.9m). The Imagelinx division delivered an
improved operating performance, with an operating loss before
operating exceptional items and goodwill amortisation of £1.5m
(2003: £3.0m). 
Operating exceptional items of £1.7m include one off charges
for restructuring of £0.7m, a write-down of fixed assets and
capitalised costs of £0.9m, a write-down of intangible assets
of £0.2m and a loan note credit of £0.1m. 
Trading results
Table 1 opposite summarises Group sales by division in the
year. Group turnover declined 6% to £55.6m (2003: £58.8m).
On continuing operations and excluding exchange effects
turnover decline was 1% compared to 2003. 
The movements in exchange rates are set out in Table 2 opposite.
The LTG Mailänder division principally invoices customers
globally in Euros. It takes out forward currency contracts for major
customers, where the invoicing currency is not in Euros. In 2004
the increase in the value of the Euro resulted in an exchange
loss upon translation, for LTG Mailänder sales, of £1.0m but
nil impact on profits. At Imagelinx the weakness in the value
of the US Dollar resulted in an exchange loss upon translation,
for Imagelinx sales of £0.4m and a decrease in the loss in
Imagelinx of £0.2m.
Imagelinx operational performance is summarised in Table 3
opposite. Imagelinx delivered an improved result with an
operating loss before operating exceptional items of £1.5m
(2003: £3.0m) on declining sales of £7.3m (2003: £8.1m). This
sales decline was 10%. Sales were adversely affected by the
weakness of the Dollar during 2004 relative to 2003. 5% of this
decline was due to exchange differences arising on translation,
as approximately half the sales are in US Dollars. Other
negative effects on sales arose from the closure of loss making
facilities in the US engaged in the business with the US Can
packaging group and with Kimberly Clark. Imagelinx sales to
consumer goods clients grew overall. 
Headcount was reduced to 90 (2003: 112). The combination
of the restructurings in the US and Europe has resulted in gross
margins increasing to 49% (2003: 47%) and operating costs
reducing by 25%.
LTG Mailänder operational performance is summarised in Table 4
opposite. LTG Mailänder reported a decline in sales of 2%. If the
exchange effect of the Euro is removed sales are in line with
2003. This has been achieved in a competitive market situation,
with pricing pressures. As a result of these pricing pressures the
gross margin as a percentage of sales has declined to 27.2%
(2003: 28.6%). The other operating expenses removing the
effect of exchange have been held constant. Headcount numbers
did not change from 2003, with 321 personnel being based
in our Stuttgart operations and 17 personnel in overseas affiliate
sales operations.
Table 5 opposite summarises operating exceptional items in the
year. Operating exceptional items have arisen as a result of the
European and US restructuring and the resulting redundancy
and severance related costs of £0.7m. The closure of operations
in the US has led to the write-down of fixed assets of £0.2m.
A further review of capitalised costs has been undertaken
in accordance with FRS 15. This has resulted in a £0.7m
write-down of capitalised costs. There is a £0.2m write-down
relating to rights obtained under the US Can contract. The ITS
loan note of £0.1m which was provided against last year,
was received this year.
Group balance sheet
The Group balance sheet remains in a net liability position.
The change in net liabilities can be summarised as shown
in Table 1 on page 8.
FRS 17 was adopted in the 2002 reported accounts by
LTG Technologies PLC in respect of the Crabtree of Gateshead
pension fund, which remains with the Group after the sale
of the business on 19 March 2003. Following this Standard
brings any deficit or surplus arising in the fund onto the Group
balance sheet. See Table 2 on page 8.
Analysis of cash, overdrafts and loans
The analysis shown in Table 3 on page 8 summarises the effect
of the re-financing with Landesbank Baden-Wurttemberg
(“LBBW”) completed on 15 November 2004, which replaced
an existing Euro 8.25m loan, with a six year term loan of Euros
8.118m. This loan includes Euros 6.538m of loans repayable
after more than one year. This is equivalent to £4.629m at
closing rates of exchange. New facilities of Euro 4.13m (£2.9m)
were established for LTG Mailänder GmbH & Co KG. In June
2004 a new £0.6m invoicing discount facility was established
for Imagelinx UK Limited with Royal Bank of Scotland (“RBS”).
Pensions
The Group adopted FRS 17 early in 2002, being the most
appropriate method to treat this aspect of the Group’s
responsibilities. The financial position of the Group is sensitive
Michael Williamson Finance Director
Operating losses from continuing operations and before operating
exceptional items and goodwill were reduced to £Nil versus £3.3m
in 2003 and £8.4m in 2002.
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LTG Technologies PLC Annual Report and Accounts 2004 
to the position of the Crabtree defined benefit scheme, which
had £11.7m (2003: £10.1m) of assets at 31 December 2004.
The present value of the scheme’s liabilities has been calculated
at £16.2m (2003: £16.4m) at 31 December 2004. The resulting
deficit in the pension scheme is £4.5m (2003: £6.3m). The deficit,
plus the £1.1m liability (2003: £1.1m) on the LTG Mailänder
scheme represents the total £5.6m pension fund deficit. 
The size of the calculated deficit is highly sensitive to changes
in financial conditions in the equity and bond markets,
in inflation rates and assumed mortality rates. The scheme
has 100 existing pensioners and 277 deferred pensioners
according to the latest information from the Trustees.
Payments to pensioners in 2004 were £342,000.
Impairment review of Imagelinx assets
In accordance with FRS 11 the Board has undertaken reviews
at the half year and full year for impairment of the carrying
value of the fixed asset and goodwill associated with Imagelinx.
As a result of the most recent review, no impairment has been
taken. The goodwill held in the Group balance sheet for
Imagelinx is £6.2m (2003: £6.9m) and the carrying value
of the investment in the Company balance sheet is £12.6m
(2003: £12.6m).
Goodwill amortisation is £0.6m (2003: £0.6m). It represents
the amortisation of goodwill over 15 years relating to the
acquisition of Imagelinx in 2000.
Fixed asset capitalisation
In accordance with FRS 15 and FRS 11 the Board has undertaken
a review to determine whether acquired or self-constructed,
tangible fixed assets relating to IT development should continue
to be capitalised. As a result of the review £0.7m (2003: £5.6m)
of capitalised costs have been written-down. IT development
costs, which are capitalised at 31 December 2004 are £0.6m
(2003: £1.1m).
Derivatives and other financial instruments
The Group’s principal financial instruments throughout the year
comprised bank loans, finance leases and hire purchase contracts.
The main purpose of these financial instruments is to raise finance
for the Group’s operations. The Group has various other financial
instruments such as trade debtors and trade creditors that arise
directly from its operations. The Group also enters into derivative
transactions (principally forward currency contracts). The purpose
is to manage the interest rate and currency risks arising from the
Group’s operations and its sources of finance. It is, and has been
throughout the period under review, the Group’s policy that no
speculation or trading in financial instruments shall be undertaken.
The main risks arising from the Group’s financial instruments
are interest rate risk, liquidity risk and foreign currency risk.
The Board reviews and agrees policies for managing each
1. Sales by division 
Underlying
percentage
change
(excluding 
2004 2003 exchange
Unaudited £m £m Change effect) 
LTG Mailänder 48.2 49.0 (2)% —
Imagelinx 7.3 8.1 (10)% (5)%
Other sales 0.1 0.1
Continuing operations 55.6 57.2 (3)% (1)%
Discontinued operations — 1.6
Total Group 55.6 58.8 (6)% (3)%
2. Exchange rates used in translation of overseas earnings
$ $ Euros Euros 
Currency to £1 2004 2003 2004 2003
Average rate for profit and loss account 1.83 1.64 1.47 1.45
Closing rate for balance sheet purposes 1.93 1.78 1.41 1.42
3. Imagelinx operational performance
2004 2003
£m £m
Sales 7.3 8.1
Gross margin 3.6 3.8
Other operating expenses (5.1) (6.8)
Operating loss before operating exceptional items (1.5) (3.0)
Operating exceptional items (1.8) (6.2)
Operating loss before goodwill and interest (3.3) (9.2)
4. LTG Mailänder (continuing operations) operational performance
2004 2003
£m £m
Sales 48.2 49.0
Gross margin 13.1 14.0
Other operating expenses (11.7) (12.1)
Operating profit before operating exceptional items 1.4 1.9
Operating exceptional items — (0.1)
Operating profit before goodwill and interest 1.4 1.8
5. Group operating exceptional items
2004 2003
£m £m
Capitalised assets written-down (0.7) (5.6)
Severance and restructuring costs (0.7) (0.6)
Write-down of tangible fixed assets (0.2) (0.1)
Write-down of intangible assets (0.2) —
ITS loan note write-down 0.1 (0.1)
(1.7) (6.4)
Trading results
_0LTG_2004arf.qxd  24/03/2005  16:49  Page 7  8
Financial review cont…
 LTG Technologies PLC Annual Report and Accounts 2004
mature within one year, while cash deposits when arising are
held in short term accounts. At the year-end the Group had
been successful in applying this policy, with facilities and short
term cash held in the desired forms.
Foreign currency risk
As a result of the significant investment in operations in
Germany and the USA, the Group’s balance sheet can be
significantly affected by movements in the US Dollar/Sterling,
and Euro/Sterling rates. The Group minimises its exposure to
investments in foreign currencies where possible by aligning
the currencies of liabilities and assets.
The Group also has transactional currency exposures.
Such exposures arise from sales or purchases by an operating
unit in currencies other than the unit’s functional currency. 
The Group requires all its operating units to use forward
currency contracts to eliminate the currency exposures on
foreign currency receivables when the size of the receivable
is sufficient to warrant this. At year-end, the Group has not
hedged any foreign currency receivables, as they were not
considered sufficient to warrant this. 
Where an exchange risk arises, the Group requires all its
operating units to use forward currency contracts to eliminate
the currency exposures on foreign currency payables when the
size of the payable is sufficient to warrant this. At the year-end
none of these payables had been hedged.
Taxation
An analysis of the taxation charge/(credit) is set out in note 8
to the accounts. The taxation credit as a percentage of loss
before taxation was 0.2% in the current year compared to
a charge of 0.4% in the previous year. 
Liquidity
On 11 January 2004 the Company completed the successful
placing of 11.5m shares, providing the Group with £1.475m
of capital (net of £20,000 share issue costs) for the completion
of the i-con technology. The proceeds were received in January
2004. The number of shares in issue following the placing of
these new shares is 242,338,635.
During 2004 the Group has established the following committed
loan and working capital facilities available at 31 December 2004: 
 Euro 8.118m in the name of LTG Mailänder GmbH & Co. KG
with Landesbank Baden-Wurttenberg (“LBBW”), secured on
the fixed assets, inventory and shares of LTG Mailänder
GmbH & Co. KG. This facility established on 15 November
2004 replaces the previous facility of Euro 8.25m in the
name of LTG Technologies PLC. All security in the name of
LTG Technologies PLC has been released. Interest is
of these risks and they are summarised below. These policies
have remained broadly unchanged since the beginning
of 2000. The magnitude of this risk that has arisen over
the period is detailed in note 20.
Interest rate risk
The Group borrows funds in desired currencies at fixed and
floating rates of interest. Policy in respect of interest-bearing
liabilities arising is to achieve the most efficient outcome
for the Group, regardless of the nature of credit taken.
At 31 December 2004, cash balances and overdrafts were
generally held in the operating currencies of the companies
holding these balances.
Liquidity risk
The Group’s policy is to have adequate access to bank facilities
in the Group’s main trading currencies. Current facilities all
We established a six year term loan of Euros 8.118m, to replace a short
term overdraft facility.
Group balance sheet
1. Change in net liabilities
£m
Opening net liabilities (4.4)
Loss for the year (3.1)
New shares issued and premium on share issue 1.5
Actuarial gain 1.7
Other recognised gains or losses (0.3)
Closing net liabilities (4.6)
2. Net assets before pension fund deficit
At At 
31 December 31 December
2004 2003
Closing net liabilities at 31 December (4.6) (4.4)
Pension fund deficit under FRS 17 (5.6) (7.4)
Net assets after adding back pension fund provision 
under FRS 17 1.0 3.0
3. Analysis of cash, overdrafts and loans
At At 
31 December 31 December
2004 2003
Cash 0.9 0.7
Overdrafts (0.6) (6.0)
Current instalments due on loans – LBBW six year term loan (1.7) (0.7)
Finance lease obligations (0.1) (0.1)
Loans – amounts falling due after more than one year 
– LBBW six year term loan (4.6) —
(6.1) (6.1)
_0LTG_2004arf.qxd  24/03/2005  16:49  Page 8 9 
LTG Technologies PLC Annual Report and Accounts 2004 
payable at 5.5% (8.75% under the previous facility).
The loan is repayable in six instalments commencing with
Euro 1.368m on 31 December 2005 and following with
Euro 1.35m each year thereafter from 31 December 2006
through to 31 December 2010. 
 Euro 4.13m in the name of LTG Mailänder GmbH & Co. KG
with LBBW. This facility replaces the Euro 2m project
finance facility in place since October 2003, drawn in full
from July 2004 and repaid on 15 November 2004 as part
of the re-financing package. Interest is payable at 7.25% for
cash usage (8% under the previous facility). An amount of
Euro 0.8m maximum will be held as cash on deposit to
cover guarantees. Euro 2.4m is the maximum cash available
for working capital purposes. Guarantees can be drawn
to the full Euro 4.13m.
 £0.6m invoice discounting in the name of Imagelinx UK
Limited, with Royal Bank of Scotland (“RBS”), secured on
trade debtors, with an interest rate 2.3% above UK Bank of
England base rate, current cost of capital 7.05%, plus 0.3%
of UK turnover arrangement fee. 
The Group net cash inflow in 2004 was £5.6m (2003: £4.2m
outflow) resulting in a net indebtedness position at
31 December 2004 of £6.1m (2003: £6.1m). This net
inflow represents total outflows before financing of £1.4m
(2003: £4.7m), before the receipt of £1.5m for shares issued
(2003: £Nil), and £5.5m (2003: £0.5m) of net loans taken out.
The net indebtedness position remains unchanged from 2003,
as the loans were used to pay off £5.5m of overdraft. Cash
flow prior to capital expenditure, working capital movement
and financing in 2004 was £0.1m inflow. Capital expenditure,
principally i-con development was £0.3m (2003: £2.2m), there
was an injection of £1.5m in new equity and there was an
adverse movement in working capital of £1.3m (2003: £3.8m). 
Going concern
The Directors continually monitor the financial position of
the Group, taking into account the latest forecasts of future
cash flows and analyses of these forecasts, sensitised in respect
of the key uncertainties facing the Group’s ability to generate
cash. The Directors consider that the major uncertainties are
the timing of actual versus targeted sales in the Imagelinx
division while it is building up the client base for its pioneering
services and the Board is monitoring closely the strength of the
underlying recovery of the LTG Mailänder division, particularly
given the current competitor activity and the uncertainty with
regard to contributions required for the Crabtree of Gateshead
pension fund. The pension fund may be affected by the new
Pensions Act due to become law on the 5 April 2005. The Board
has identified cash savings which can be realised in the
short term in both divisions, if necessary, while minimising
the effect on the Group’s global operating capability.
The Group has established improved loan and working
capital facilities at 31 December 2004.
Based on this information and assessment, the Directors have a
reasonable expectation that the Group has adequate resources
to continue in operational existence for the foreseeable future.
For this reason, they continue to adopt the going concern basis
in preparing the accounts.
The financial statements do not reflect any adjustments, which
would be required, if the going concern assumption were not
appropriate. Given the uncertainty described above it is not
currently possible to determine the extent and quantification
of such adjustments but these might include the write-down
of the carrying value of goodwill at Group level and the
investments in the Company’s subsidiaries, at Company level,
to the best estimate of their net realisable value on disposal,
and the write-down of certain assets and the disclosure of,
or provision for additional liabilities.
International Financial Reporting Standards (“IFRS”)
The Alternative investment Market (“AiM”) has changed its status
from an EU “Regulated Market” to an exchange-regulated
market removing AiM companies from the EU Regulation
requiring use of IFRS for reporting periods beginning on
or after 1 January 2005. However revised AiM Rules note that
the London Stock Exchange has mandated use of IFRS or
International Accounting Standards by AiM companies for
periods beginning on or after 1 January 2007. As an AiM
quoted company, LTG Technologies PLC will be required to
produce financial statements for accounting periods beginning
on or after 1 January 2007 in accordance with IFRS. This will
require an opening balance sheet to be prepared under IFRS
at 1 January 2006 and a full Income Statement, Balance Sheet,
Cash Flow Statement and Statement of Changes in Equity for
the year-ended 31 December 2006 for comparative purposes.
The most significant areas of impact are expected to arise
in the treatment of goodwill, pensions and accounting for
employee incentive arrangements.
Michael Williamson 
Finance Director
During 2004 the Group has established new loan and working capital
facilities and completed the successful placing of 11.5m shares.
_0LTG_2004arf.qxd  24/03/2005  16:49  Page 9  10
Operational review: Imagelinx
 LTG Technologies PLC Annual Report and Accounts 2004
Imagelinx works for major global consumer goods companies
such as Gillette. For Gillette’s Grooming and Duracell divisions,
Imagelinx manages all artwork and reprography for all substrates
and handles all printing issues in all markets worldwide, including
India, China etc.
Next to Gillette Imagelinx’s client list includes Procter and Gamble,
Colgate-Palmolive, Diageo, Boots and Uniq.
Imagelinx currently has 90 employees in Nottingham (UK), Boston,
Chicago, Paris and Hamburg.
Imagelinx is completely supplier independent and works for the
Marketing Groups and the Purchasing Groups at the same time
often helping both to achieve conflicting targets!
Imagelinx uses an innovative system based on:
an in-depth understanding of the different print processes;
highest quality sampling methods that work for both marketing
people and printers;
integration of artwork and reprography; and
completely digital workflows using internet based proprietary
IT systems.
Imagelinx is a packaging graphics services company.
It provides a range of services to
increase the quality
increase the speed of introduction and
reduce the cost
of consumer goods packaging worldwide.
Imagelinx
_0LTG_2004arf.qxd  24/03/2005  16:49  Page 10 11 
LTG Technologies PLC Annual Report and Accounts 2004 
Gillette/Duracell
From a purchasing and supply chain
perspective, packaging is one of the most
difficult direct materials to handle.
Packaging graphics especially used to be a
major bottleneck with regards to improving
flexibility and reducing costs. Imagelinx has
provided Gillette/Duracell with the toolset
to change that.
Procter & Gamble
Imagelinx has been awarded the supply
of pre-press services for the following
North American Hair Color Brands;
Nice N Easy, Miss Clairol and
Herbal Essences.
_0LTG_2004arf.qxd  24/03/2005  16:49  Page 11  12
Operational review: LTG Mailänder
 LTG Technologies PLC Annual Report and Accounts 2004
 LTG Mailänder offers a range of technologies such as
pre-press, printing, coating, drying and sheet handling
integrated into complete metal decorating systems.
 LTG Mailänder offers the Sprint technology for high
efficiency metal decorating and the Mailänder and LTG
brands of conventional metal decorating equipment.
 LTG Mailänder employs 338 employees, of which 321
are based in the headquarters of the division in
Stuttgart, Germany.
 Main markets are Asia and Europe.
LTG Mailänder is the world market leader in machinery
for printing and coating metal sheets mainly used in the
packaging industry (referred to as metal decorating).
LTG Mailänder
_0LTG_2004arf.qxd  24/03/2005  16:49  Page 12 13 
LTG Technologies PLC Annual Report and Accounts 2004 
LTG Mailänder
LTG Mailänder supplies the full range of
technologies required to print and coat
metal sheets. LTG Mailänder systems are in
operation in practically every country of the
world where metal packaging is produced.
The Company has been in this business for
more than 120 years.
Sprint
LTG Mailänder offers the Sprint high
efficiency range of metal decorating
systems. The market is replacing
conventional machinery with this new
generation of printing and coating
technology which dramatically increases
quality and output at lower cost.
_0LTG_2004arf.qxd  24/03/2005  16:49  Page 13  14
Board of Directors
 LTG Technologies PLC Annual Report and Accounts 2004
David Straker-Smith 
Non-executive Chairman (46)
David Straker-Smith is an executive director of CrossBorder
Capital Ltd, global investment advisors, and is director of
a number of private companies. He previously worked for
Gerrard & National Holdings PLC as a main board director,
and subsequently at ING Barings Securities. He was appointed
a Director of LTG Technologies PLC in September 1998 and
became Chairman in December 1999.
John Holmes
Non-executive Director (66)
John Holmes was appointed a Non-executive Director
of LTG Technologies PLC in June 1999 on his retirement from
Crabtree. Mr Holmes has more than 40 years’ experience in
the engineering industry with extensive international experience
with Wilmot Breedon, Plessey, Stewart Warner and Crabtree
of Gateshead whom he joined in 1991 as manufacturing
director. In 1994 he became managing director of Crabtree
Group PLC.
Alistair Rae
Non-executive Director (46)
Alistair Rae was appointed a Non-executive Director of
LTG Technologies PLC in July 2002. He qualified as a chartered
accountant with KPMG in 1983 and after three years with
Deloitte & Touche in London and Luxembourg, he joined
Cazenove & Co’s Corporate Finance Department. He was
managing director of Cazenove’s South East Asian business,
based in Hong Kong. In 1996 he became a director of HSBC
Investment Bank plc and in 2004 became the group finance
director of Jarvis plc.
Gregor Wedell 
Non-executive Director (37)
Gregor Wedell was appointed a Non-executive Director of
LTG Technologies PLC in March 2003. He is head of the
corporate department of the law firm Schalast & Partner,
Frankfurt am Main/Dresden, Germany, and a board member
of a number of German associations and companies.
After spending two years in the Brussels office of the firm
he has since been based in Dresden and Frankfurt, specialising
in company law and intellectual property.
Non-executive Directors
_0LTG_2004arf.qxd  24/03/2005  16:49  Page 14 15 
LTG Technologies PLC Annual Report and Accounts 2004 
Dr. Franz Wimpffen
Non-executive Director (46)
Dr. Wimpffen graduated from St Gallen University, Switzerland
with a doctorate in Corporate Finance and in 1989 joined
LTG Holding. In 1990, Dr. Wimpffen became Finance Manager
of the metal decorating division of LTG Holding and in 1996
he was made Finance Director of LTG Mailänder GmbH.
In 1998 he was made additionally Chief Executive Officer
of LTG Mailänder GmbH, moving in 1999 to become
Finance Director of the LTG Mailänder division. He became
Director of Business Development in November 2000.
In September 2004 Dr. Wimpffen resigned from his position
as Executive Director in order to become Chief Executive of
LTG Holding GmbH & Co. KG in Germany. He continues
to serve on the Board as a Non-executive Director. 
Dr. Ing Peter Heizmann
Non-executive Director (65) 
In 1963 Dr. Heizmann graduated as an engineer (Dipl-Ing.)
at the Technische Hochschule in Munich, where he also
obtained his doctorate in 1969. He joined LTG Holding GmbH
as sales engineer in 1969 and was put in charge of the metal
decorating division in 1980. He became Sales Director of
LTG Holding in 1993. He was appointed a Director of
LTG Technologies PLC in September 1998. In February 2005
Dr. Heizmann retired from his position as Executive Director
of the Company, but continues to serve on the Board as
a Non-executive Director.
Albert Klein
Chief Executive (43)
After graduating from St Gallen University, Switzerland, with
a Masters Degree in Business and Administration, Mr Klein
worked for Carrier Corporation in the USA and England for four
years before taking an active role in the LTG Group in 1994.
From 1994 until March 1996 he was Chairman of LTG Holding
and a member of the Supervisory Board. In March 1996
he was appointed as Managing Director of LTG Holding and
in September 1998 he was appointed Chief Executive of
LTG Technologies PLC.
Michael Williamson
Finance Director and Company Secretary (47)
Mr Williamson joined LTG Technologies PLC in January 2003.
After graduating with a degree in economics, he qualified
in London as a chartered accountant. Subsequently he held
senior financial management positions in the pharmaceutical
industry with Aventis and GlaxoSmithKline. He has also been
a main board director of MFI Furniture Group plc.
Executive Directors
_0LTG_2004arf.qxd  24/03/2005  16:49  Page 15  16
Directors’ report
 LTG Technologies PLC Annual Report and Accounts 2004
Results and dividends
The Group profit and loss account for the year ended 31 December 2004 is shown on page 26. Analyses of turnover and
operating profit or loss by activity are shown in note 2 to the accounts. The Group loss for the year amounted to £3,135,000
(2003: loss of £10,680,000). The Directors recommend that no dividend be paid.
Principal activities
The Group’s principal activities during the year were the provision of pre-press and graphic brand management services, and
the manufacture of metal decorating machinery, including printing presses, coaters, drying ovens and exhaust air purification
– principally supplied to the metal packaging industry – plus spare parts and servicing of equipment. The Group’s products are
sold worldwide.
The Group’s major operations are in Nottingham (England), Chicago (USA), Boston (USA), Stuttgart (Germany) and Tokyo (Japan).
The principal activity of the Company during the year was that of a holding company.
Review of the business and future developments
The Group’s business activities over the year and future prospects are set out in the Chairman’s Statement on page 2,
Chief Executive’s Review on pages 3 to 5 and Financial Review on pages 6 to 9.
Research and development
Research and development is concentrated on the development of new products capable of generating greater turnover.
Substantial interests in share capital
As of 21 February 2005, the Company’s share register of substantial shareholdings showed the following interests in 3% or more
of the Company’s ordinary shares:
Name Holding %
LTG Holding GmbH & Co. KG 102,677,214 42.36
Süd-Kapitalbeteiligungs-Gesellschaft mbH 18,337,474 7.56
Capital Group Companies Inc 17,785,714 7.33
Artemis Investment Management 13,500,000 5.57
Fidelity International Limited and FMR Corp 12,764,259 5.27
David Straker-Smith 9,349,857 3.86
Other than disclosed above, the Directors are not aware of any other person holding, or beneficially interested in, 3% or more
of the ordinary share capital of the Company.
The ultimate beneficial owner of LTG Holding GmbH & Co. KG is Dr. Klein Erben Holding GmbH.
Directors and their interests
The Directors during the year were as follows:
David Straker-Smith Albert Klein Michael Williamson Udo Bange (resigned 29 January 2004)
John Holmes Alistair Rae Gregor Wedell Byron Ousey (resigned 19 January 2004)
Dr. Franz Wimpfren Dr. Ing Peter Heizmann
The interests of the Directors and their families in the share capital of the Company were as follows:
At At
31 December 1 January
2004 2004
ordinary ordinary
5p shares 5p shares
Albert Klein 848,548
†
848,548
†
David Straker-Smith 9,349,857 9,349,857
Dr. Ing Peter Heizmann 124,285 124,285
Dr. Franz Wimpffen 18,333 18,333
John Holmes 2,750 2,750
Alistair Rae — —
Michael Williamson — —
Gregor Wedell — —
† All held by the Corsage Investment Trust, the beneficiaries of which include Albert Klein and his family.
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 16 17 
LTG Technologies PLC Annual Report and Accounts 2004 
Directors and their interests cont…
In addition, Albert Klein held throughout the period 102,677,214 shares or 22.9% of the issued share capital of Dr. Klein Erben
Holding GmbH, which together with his family trust (of which he is a beneficiary), is the ultimate beneficial owner of 42.4%
of the issued share capital of the Company (as at 21 February 2005).
The Executive Directors, along with other employees, have been granted options and similar rights over the shares held by the
LTG Technologies PLC Employee Share Trust. Details of these interests are disclosed in the report on Directors’ remuneration.
Dr. Franz Wimpffen resigned as an Executive Director on 30 September 2004 and became a Non-executive Director on that date.
Dr. Ing Peter Heizmann resigned as an Executive Director on 10 February 2005 and became a Non-executive Director on that date.
Events since the balance sheet date
See note 25.
Disabled employees
The Group gives full consideration to applications for employment from disabled persons where the requirements of the job
can be adequately fulfilled by a handicapped or disabled person.
Where existing employees become disabled, it is the Group’s policy wherever practicable to provide continuing employment
under normal terms and conditions and to provide training and career development and promotion to disabled employees
wherever appropriate.
Employee involvement
Regular meetings are held between local management and employees to allow a free flow of information and ideas. A share option
scheme exists to provide employees with further incentivisation.
Creditor payment policy and practice
It is the Company’s policy that payments to suppliers are made in accordance with those terms and conditions agreed between
the Company and its suppliers, provided that all trading terms and conditions have been complied with.
At 31 December 2004, the Company had an average of 90 days’ purchases (2003: 65 days’ purchases) outstanding in trade creditors.
Auditors
BDO Stoy Hayward LLP have expressed their willingness to continue in office and a resolution to re-appoint them as the Group’s
auditors will be proposed at the forthcoming Annual General Meeting (“AGM”).
Annual General Meeting
The following resolutions will be considered at the AGM as Special Business:
1. An Ordinary Resolution authorising the Directors to allot up to an aggregate amount of 24,233,860 ordinary shares
(representing approximately 10% of the total issued share capital of the Company at the date hereof) such authority to expire
at the next AGM of the Company;
2. A Special Resolution disapplying the statutory pre-emption rights on the allotment of ordinary shares for cash, such powers
to be limited to:
(a) the allotment of ordinary shares in relation to a rights issue; and
(b) the allotment of ordinary shares (in circumstances other than (a) above) representing no more than 10% of the issued
share capital of the Company.
Such authority to expire at the next AGM of the Company.
By order of the Board
Michael Williamson
Company Secretary
8 March 2005
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 17  18
Statement of Directors’ responsibilities in respect of the accounts 
 LTG Technologies PLC Annual Report and Accounts 2004
Company law requires the Directors to prepare accounts for each financial year which give a true and fair view of the state of affairs
of the Company and Group and of the profit or loss of the Group for that period. In preparing those accounts, the Directors are
required to:
 select suitable accounting policies and then apply them consistently;
 make judgements and estimates that are reasonable and prudent;
 state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained
in the accounts; and
 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue
in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the
financial position of the Group and to enable them to ensure that the accounts comply with the Companies Act 1985. They are
also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 18 19 
Corporate governance 
LTG Technologies PLC Annual Report and Accounts 2004 
The Company is committed to high standards of corporate governance. The Board is accountable to the Company’s shareholders
for good corporate governance. This statement describes how the principles of corporate governance are applied to the Company
and the degree of the Company’s compliance with the provisions set out in the new Code.
Following publication of the Higgs Review – The Role and Effectiveness of Non-executive Directors and the Smith Report
– Combined Code Guidance for Audit Committees in January 2003, the Financial Reporting Council issued the new Combined
Code on 23 July 2003, which comes into effect for reporting years beginning on or after 1 November 2003. The principles and
provisions of the new Code have been considered by the Board. The Board will continue to review its practices in the light of
the new Code.
The Company moved from a full listing on the Stock Exchange to a listing on AiM on 26 September 2003, and as such the
Company is not covered by the Listing Rules. Nevertheless, in the interests of providing maximum transparency to shareholders,
the Board complies with those provisions of the new Code it deems relevant, ensuring that embedded risk controls are in place.
The Chairmen of the Audit, Remuneration and Nomination Committees will be available to answer questions at this year’s AGM
to be held on 28 April 2005.
The Board
The Board currently comprises the independent Non-executive Chairman, the Chief Executive, the Finance Director and five other
independent Non-executive Directors. Short biographies of each of the Directors, which illustrate their range of experience, are set
out on pages 14 and 15. There is a clear division of responsibility at the head of the Company, the Chairman being responsible
for running the Board and the Chief Executive for implementing Group strategy. John Holmes has been nominated as the Senior
Independent Director. The Board structure ensures that no individual or group dominates the decision-making process. The Board
is responsible to shareholders for the proper management of the Group. A statement of the Directors’ responsibilities in respect
of the accounts is set out on page 18 and a statement on going concern is given on page 9.
The Board considers that, although David Straker-Smith is deemed not to be independent under the definition of independence
in the new Code, as there are no relationships or circumstances that might affect his judgement; he is independent not withstanding
the fact that he has a substantial shareholding in the Company.
The Board considers that, although Gregor Wedell is deemed not to be independent under the definition of independence in the
new Code, as there are no relationships or circumstances that might affect his judgement; he is independent not withstanding
the fact that he represents LTG Holding GmbH, a significant shareholder and has close family ties with that company’s Directors.
The Board considers that, although John Holmes is deemed not to be independent under the definition of independence in the
new Code, as there are no relationships or circumstances that might affect his judgement; he is independent not withstanding
the fact that he is former director of Crabtree of Gateshead Limited, a former subsidiary Company.
The Board also considers that, although Dr. Franz Wimpffen is deemed not to be independent under the definition of
independence in the new Code, as there are no relationships or circumstances that might affect his judgement; he is independent
notwithstanding the fact that he represents LTG Holding GmbH, a significant shareholder and is a former Executive Director of
the Company.
The Board considers that, although Dr. Ing Peter Heizmann is deemed not to be independent under the definition of independence
in the new Code, as there are no relationships or circumstances that might affect his judgement; he is independent notwithstanding
the fact that he is a former employee of LTG Holding GmbH, a significant shareholder and is a former Executive Director of
the Company.
All Directors have access to the advice and services of the Company Secretary. The need for Director training is regularly assessed
by the Company. The Chairman ensures that the Directors take independent professional advice as required.
The Board met formally every month in 2004 and managed the Company through a formal schedule of matters. These include
overall management of the Group; approval of strategic plans including acquisitions and disposals; approval of commercial strategy,
including the annual business plan covering operating and capital expenditure budgets; approval of the financial statements,
material agreements and non recurring projects; treasury policy; control, audit and risk management and remuneration.
In 2005 the Board will meet on nine occasions at set dates and manage the Company through a formal schedule of matters as
referred to above. It will arrange other meetings if required. The Non-executive Directors have a particular responsibility to ensure
that the strategies proposed by the Executive Directors are fully considered. The Board receives appropriate and timely information,
Board papers being sent out several days prior to the meeting. It delegates responsibility to the Board Committees detailed on page 20.
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 19  20
Corporate governance cont…
 LTG Technologies PLC Annual Report and Accounts 2004
Nomination Committee
The Nomination Committee is chaired by David Straker-Smith and its other member is John Holmes. It is responsible for
proposing candidates for appointment to the Board, having regard to the balance and structure of the Board. In appropriate
cases, recruitment consultants will be used to assist the process. All Directors are subject to re-election at least every three years.
Remuneration Committee
The Remuneration Committee is chaired by David Straker-Smith and its other members are John Holmes and Alistair Rae. It is
responsible for making recommendations to the Board, within agreed terms of reference, on the Company’s framework of
Executive remuneration and its cost. The Remuneration Committee determines the contract terms, remuneration and other
benefits for each of the Executive Directors, including performance related bonus schemes, pension rights and compensation
payments. The Board itself determines the remuneration of the Non-executive Directors. The Remuneration Committee will be
advised as necessary by a firm of remuneration consultants.
Further details of the Company’s policies on remuneration, service contracts and compensation payments are given in the
Remuneration Report on pages 22 to 24. The report has been prepared by the Board following the provisions in the new
Combined Code.
Audit Committee
The Audit Committee is chaired by David Straker-Smith and its other members are John Holmes and Alistair Rae. It meets not
less than twice annually. The Audit Committee provides a forum for reporting by the Group’s external auditors. Meetings are
also attended, by invitation, by the Chief Executive and the Finance Director.
The Audit Committee is responsible for reviewing a wide range of matters including the half year and annual accounts on or
before their submission to the Board and monitoring the controls which are in force to ensure the integrity of the information
reported to the shareholders. The Audit Committee advises the Board on the appointment of external auditors and on their
remuneration both for audit and non-audit work, and discusses the nature, scope and results of the audit with external auditors.
The Audit Committee keeps under review the cost effectiveness and the independence and objectivity of the external auditors.
Relations with shareholders
The Board recognises the importance of communications with shareholders to ensure that its strategy and performance is
understood. The Chairman’s Statement and Chief Executive’s Review provide a detailed review of the business and future
developments. There is regular dialogue with institutional shareholders including presentations following the Group’s
announcement of the full year and interim results.
The Board uses the AGM to communicate with private and institutional investors and welcomes their participation. Details of
resolutions to be proposed at the AGM on 28 April 2005 can be found in the Notice of the Meeting on page 52.
Risk and internal controls
The Board is responsible for establishing and maintaining the Group’s system of internal control. Internal control systems are
designed to meet the particular needs of the Group and the risks to which it is exposed, and by their nature can provide
reasonable but not absolute assurance against material misstatement or loss. The Group’s systems and controls are designed
to safeguard the Group’s assets and to ensure reliability of information used within the business and for publication.
Day to day responsibility for the management and operations of the business has been delegated to two divisional boards.
This ensures that the businesses obtain maximum leverage from sector specific skills. Clear levels of authority exist for the Group’s
Executive management and the divisional boards. Subsidiaries are given autonomy to manage operations, whilst operating within
an established control environment. The divisional boards meet on a regular basis and Group Executive management attends
these meetings. This ongoing process identifies, evaluates and manages the significant risks, which are regularly reviewed by
the Group’s Board.
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 20 21 
LTG Technologies PLC Annual Report and Accounts 2004 
Risk and internal controls cont…
The key procedures which the Directors have established with a view to providing effective internal controls are as follows:
 Management structure 
The Board has overall responsibility for the Group and there is a formal schedule of matters specifically reserved for decision
by the Board. Each Executive Director has been given responsibility for specific aspects of the Group’s affairs;
 Quality and integrity of personnel 
The integrity and competence of personnel is ensured through high recruitment standards and subsequent training courses.
High quality personnel are seen as an essential part of internal control;
 Identification of business risks 
The Board is responsible for identifying the major business risks faced by the Group and for determining the appropriate course
of action to manage those risks;
 Budgetary processes 
The Board is responsible for Group strategy, approving budgets and plans, approving acquisitions or disposals and determining
treasury and dividend policy. Each year the Board approves the annual budget and strategic plan. Key risk areas are identified;
 Monitoring and reporting performance 
Monthly results, including variances from plans and prior year, together with updated forecasts for current performance for
up to 24 months are reported to the Board. These reports cover sales, profits and losses, cash flows, capital expenditure and
balance sheets. Key risk areas are identified. Performance is monitored and relevant action taken throughout the year through
the monthly reporting process to the Board;
 Investment appraisal 
Capital expenditure is regulated by a budgetary process and authorisation levels. For expenditure beyond specified levels,
detailed written proposals have to be submitted to the Board. Reviews are carried out after the capital expenditure or acquisition
is complete, and for some projects, during the project or acquisition period, to monitor expenditure; major overruns are
investigated. Proposals for research and development programmes beyond specified limits are considered by the Board.
Due diligence work is carried out if a business is to be acquired; and
 Audit Committee 
The Audit Committee monitors the controls which are in force and any perceived gaps in the control environment. It considers
and determines relevant action in respect of any control issues raised by the external auditors. It reviews the effectiveness of the
system of internal financial control as it operates during the year and reports conclusions to the Board. It assists the Board in
the discharge of its duties regarding the Company’s financial statements, accounting policies and maintenance of internal
controls and risk management systems.
Retirement and appointment of Directors
Dr. Ing Peter Heizmann and Michael Williamson retire by rotation and, being eligible, offer themselves for re-election.
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 21  22
Directors’ remuneration report 
 LTG Technologies PLC Annual Report and Accounts 2004
The Remuneration Committee is chaired by David Straker-Smith and its other members are John Holmes and Alistair Rae. It makes
recommendations to the Board, within agreed terms of reference, on an overall remuneration package for Executive Directors and
other senior Executives in order to attract, retain and motivate high quality Executives capable of achieving the Group’s objectives.
The package consists of basic salary, benefits, share options, performance related bonuses and pensions, with a significant proportion
based on performance and dependent upon the achievement of targets. Consideration is given to pay and employment policies
both externally and elsewhere in the Group, especially when determining annual salary increases. In addition, the Remuneration
Committee will be advised when necessary by a firm of Executive remuneration consultants to maximise comparability within
the marketplace and pays particular attention to the remuneration levels of the Company’s closest competitors.
The details of individual components of the remuneration package and service contracts are discussed below.
Basic salary and benefits 
The salary and benefits of Executive Directors are reviewed annually. The Remuneration Committee takes into account prevailing
market rates for similar positions in comparable companies, responsibilities, individual and corporate performance, and the experience
which each Director brings to the Group. In 2004, there were no increases in annual remuneration, but target bonuses, subject to
the criteria set by the Remuneration Committee were established at higher levels than 2003. Benefits principally comprise private
healthcare, life assurance and pension contributions.
Annual performance bonuses 
Each Executive Director has the opportunity to receive an annual bonus, if Group business and individual targets are met.
The Group business plan targets for 2004 were not achieved principally due to the sales shortfall to plan of both divisions.
The individual performance and contribution of key Executives in 2004 was recognised by the Remuneration Committee
and bonuses were awarded, as set out on page 23.
Share options
Share options are granted in accordance with the LTG Technologies PLC Employee Share Incentive Plan, which was approved
by the Remuneration Committee on 23 December 1999. The first options were granted under this scheme to Executive Directors
and certain other employees effective 1 January 2000.
The share options are awarded by the Remuneration Committee based on the movement in the Company’s share price.
The exercise price of options granted is normally the higher of the nominal value of the shares and the market price at the
date of grant, although this can be adjusted at the absolute discretion of the Remuneration Committee.
On 14 September 2004 the Remuneration Committee agreed to the issue of new options to Executive Directors. Share options
issued effective 14 September 2004 are exercisable, at a price of £0.0975 per share, between 14 September 2007 and
13 September 2014.
On 13 February 2003 the Remuneration Committee agreed to the issue of new options to Executive Directors. Share options
issued effective 14 April 2003 are exercisable, at a price of £0.03 per share, between 14 April 2006 and 13 April 2013. Share
options issued effective 30 April 2003 are exercisable, at a price of £0.04 per share, between 30 April 2006 and 30 April 2013.
Share options issued effective 1 January 2000 are exercisable, at a price of £0.40 per share, between 1 January 2002 and
31 December 2009. This initial grant was made as a single block following the listing of the Company on AiM enabling
incentivised remuneration of this type. No performance criteria apply to this award, as this was made on the basis of past
performance rather than future performance.
Share options issued effective 1 January 2001 are exercisable, at a price of £0.85 per share, between 1 January 2004 and
31 December 2010.
The awards were made to Directors as set out on page 24.
Performance related bonuses
These are calculated based on internal targets, which are determined in advance of each year by the Remuneration Committee.
Pensions
The Executive Directors are members of the LTG Technologies PLC Executive Pension Plan (see note 28) which is a defined
contribution scheme. The Company’s contributions are 12% of basic salary.
Fees
The fees for Non-executive Directors are determined by the Board within the limits stipulated in the Articles of Association.
The Non-executive Directors are not involved in any discussions or decision about their own remuneration.
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 22 23 
LTG Technologies PLC Annual Report and Accounts 2004 
Service contracts
The service contracts of all the Executive Directors have unlimited terms up to retirement, but a notice period of one year.
None of the Non-executive Directors have service contracts. There are no special provisions for compensation in the event of
loss of office. The Remuneration Committee considers the circumstances of individual cases of early termination and determines
compensation payments accordingly.
Directors’ remuneration
Basic salary
and fees Bonus Benefits Total Total
Date of 2004 2004 2004 2004 2003
contract £ £ £ £ £
Executive Directors
Albert Klein 29/9/98 158,000 90,000 10,211 258,211 245,232
Udo Bange 29/9/98 10,625 — 99 10,724 127,500
Michael Williamson 1/11/02 142,000 66,000 3,323 211,323 184,605
Dr. Ing Peter Heizmann 24/9/98 112,321 — 13,316 125,637 134,394
Dr. Franz Wimpffen 1/11/00 71,767 30,000 3,349 105,116 148,116
Nick Hunter 31/8/99——— — 5,636
Non-executive Directors
David Straker-Smith 29/9/98 40,000 — — 40,000 40,000
Dr. Franz Wimpffen 1/11/00 3,750 — — 3,750 —
John Holmes 30/6/99 15,000 — — 15,000 15,000
Byron Ousey 11/5/00 1,250 — — 1,250 15,000
Alistair Rae 27/6/02 20,000 — — 20,000 20,000
Gregor Wedell 01/4/03 15,000 — — 15,000 10,000
589,713 186,000 30,298 806,011 985,483
During the year, £48,000 (2003: £53,000) was recharged to a related Company in respect of services of Albert Klein, a Director
of the Company, made available to it. This offsets a portion of the costs set out above.
Pension entitlements
The Executive Directors are members of the LTG Technologies PLC Executive Pension Plan (see note 28), which is a defined
contribution scheme. The Company’s contributions are 12% of basic salary, and were as follows for the year:
Total Total
2004 2003
£ £
Albert Klein 17,400 17,400
Udo Bange 1,200 14,400
Michael Williamson 15,840 13,200
Nick Hunter — 597
34,400 45,597
Dr. Ing Peter Heizmann’s pension entitlement is a final salary scheme with an accrued annual pension of £43,437 per annum,
an increase of £128 over 2003. The expense charged in the accounts of the Group in respect of this scheme was £14,240
(2003: £20,053). This is an occupational scheme subject to German law. The transfer value of Dr. Ing Peter Heizmann’s accrued
benefits at the end of 2004 was £606,902 (2003: £581,071). The transfer value represents a liability of the Company, not a sum
due to Dr. Ing Peter Heizmann. Dr. Franz Wimpffen has no pension entitlement other than the German state scheme.
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 23  24
Directors’ remuneration report cont…
 LTG Technologies PLC Annual Report and Accounts 2004
Interests in options and similar rights
The interests of the Directors are as follows:
Granted on Granted on Granted on Granted on Granted on Total Total
1 January 1 January 14 April 30 April 14 September 31 December 31 December
2000
(1)
2001
(2)
2003
(3)
2003
(4)
2004
(5)
2004 2003
No. No. No. No. No. No. No.
Albert Klein 322,050 — — 700,000 226,979 1,249,029 1,022,050
Udo Bange 142,500———— 142,500 142,500
Dr. Ing Peter Heizmann 213,750 9,990——— 223,740 223,740
Dr. Franz Wimpffen 71,250 — — 200,000 — 271,250 271,250
Michael Williamson — — 700,000 — 200,000 900,000 700,000
(1) The options have an exercise price of £0.40 per share and are exercisable between 1 January 2002 and 31 December 2009.
(2) The options have an exercise price of £0.85 and are exercisable between 1 January 2004 and 31 December 2010.
(3) The options have an exercise price of £0.03 per share and are exercisable between 14 April 2006 and 13 April 2013.
(4) The options have an exercise price of £0.04 per share and are exercisable between 30 April 2006 and 29 April 2013.
(5) The options have an exercise price of £0.0975 per share and are exercisable between 15 September 2007 and 14 September 2014.
No performance criteria are attached to any of the options.
The market price of the Company’s shares on 31 December 2004 was £0.1025. The highest market price in 2004 was £0.1725
and the lowest was £0.0838.
By order of the Board
David Straker-Smith
Chairman
8 March 2005
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 24 25 
Independent auditors’ report
to the members of LTG Technologies PLC
LTG Technologies PLC Annual Report and Accounts 2004 
We have audited the financial statements of LTG Technologies PLC for the year ended 31 December 2004 on pages 26 to 30.
These financial statements have been prepared under the accounting policies set out on pages 31 to 33.
Respective responsibilities of Directors and auditors
The Directors’ responsibilities for preparing the annual report and the financial statements in accordance with applicable law and
United Kingdom Accounting Standards are set out in the statement of Directors’ responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United
Kingdom Auditing Standards.
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in
accordance with the Companies Act 1985. We also report to you if, in our opinion, the Directors’ Report is not consistent with
the financial statements, if the Group has not kept proper accounting records, if we have not received all the information and
explanations we require for our audit, or if information specified by law regarding Directors’ remuneration and transactions with
the Company and other members of the Group is not disclosed.
We read other information contained in the annual report and consider whether it is consistent with the audited financial statements.
This other information comprises only the Chairman’s Statement, the Chief Executive’s Review, the Financial Review, the Corporate
Governance Statement, the Directors’ Remuneration Report and the Directors’ Report. We consider the implications for our report
if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities
do not extend to any other information.
Our report has been prepared pursuant to the requirements of the Companies Act 1985 and for no other purpose. No person
is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose
of the Companies Act 1985 or has been expressly authorised to do so by our prior written consent. Save as above, we do not
accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all
such liability.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also
includes an assessment of the significant estimates and judgements made by the Directors in the preparation of the financial
statements, and of whether the accounting policies are appropriate to the Group’s circumstances, consistently applied and
adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order
to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement,
whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the
presentation of information in the financial statements.
Fundamental uncertainty – Going concern
In forming our opinion we have considered the adequacy of the disclosures made in note 1 to the financial statements, relating to
the financial requirements of the Group. Due to the significance of this matter, we draw it to your attention, but our opinion
is not qualified in this respect.
Opinion
In our opinion the financial statements give a true and fair view of the state of affairs of the Group and the Company as at
31 December 2004 and of the loss of the Group for the year then ended and have been properly prepared in accordance with
the Companies Act 1985.
BDO Stoy Hayward LLP
Chartered Accountants and Registered Auditors
London
8 March 2005
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 25  26
Group profit and loss account
for the year ended 31 December 2004
 LTG Technologies PLC Annual Report and Accounts 2004
Before Operating Before Operating
exceptional exceptional exceptional exceptional
items and items and items and items and
goodwill goodwill goodwill goodwill
amortisation amortisation Total amortisation amortisation Total
2004 2004 2004 2003 2003 2003
Notes £’000 £’000 £’000 £’000 £’000 £’000
Turnover
– Continuing 55,570 — 55,570 57,252 — 57,252
– Discontinued ——— 1,592 — 1,592
Group turnover 2 55,570 — 55,570 58,844 — 58,844
Cost of sales
– Continuing (38,758) — (38,758) (39,258) — (39,258)
– Discontinued ——— (1,167) — (1,167)
(38,758) — (38,758) (40,425) — (40,425)
Gross profit
– Continuing 16,812 — 16,812 17,994 — 17,994
– Discontinued ——— 425 — 425
16,812 — 16,812 18,419 — 18,419
Other operating expenses 3 (16,833) (1,640) (18,473) (21,298) (6,454) (27,752)
Goodwill amortisation – continuing — (620) (620) — (620) (620)
Group operating loss
– Continuing (21) (2,260) (2,281) (3,299) (7,074) (10,373)
– Discontinued ——— 420 — 420
(21) (2,260) (2,281) (2,879) (7,074) (9,953)
Share of operating loss in associate ——— (19) — (19)
Total operating loss 2 (21) (2,260) (2,281) (2,898) (7,074) (9,972)
Profit on disposal of
discontinued operations 5 106 106
Loss on ordinary activities before
interest and taxation (21) (2,260) (2,281) (2,898) (6,968) (9,866)
Amounts written off investments 13 (72) —
Interest receivable and similar income 6 42 86
Interest payable and similar charges 7 (710) (721)
Other finance expense 28 (119) (142)
Loss on ordinary activities
before taxation (3,140) (10,643)
Tax on loss on ordinary activities 8 5 (37)
Loss on ordinary activities
after taxation
and transferred 
from reserves (3,135) (10,680)
Loss per ordinary share –
basic and diluted 10 (1.32p) (4.72p)
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 26 27 
Group statement of total recognised gains and losses
for the year ended 31 December 2004
LTG Technologies PLC Annual Report and Accounts 2004 
2004 2003
Note £’000 £’000
Loss for the year
– Group (3,135) (10,661)
– Associated undertaking — (19)
(3,135) (10,680)
Exchange difference on retranslation of net assets of subsidiary undertakings (260) (249)
Actuarial gain/(loss) 28 1,765 (1,221)
Total recognised gains and losses relating to the year (1,630) (12,150)
Prior year adjustment – shares held by ESOT 1 485 —
Total gains and losses recognised since last financial statements (1,145) (12,150)
As restated
2004 2003
£’000 £’000
Total recognised gains and losses (1,630) (12,150)
Other movements:
New shares issued 575 —
Premium on share issue 920 —
Share issue costs written off against share premium account (20) —
Total movement during the year (155) (12,150)
Opening shareholders’ (deficit)/funds as previously stated (4,397) 7,839
Prior year adjustment (note 1) — (86)
Opening shareholders’ (deficit)/funds as restated (4,397) 7,753
Shareholders’ deficit (4,552) (4,397)
Reconciliation of movements in shareholders’ funds
for the year ended 31 December 2004
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 27  28
Group balance sheet
at 31 December 2004
 LTG Technologies PLC Annual Report and Accounts 2004
As restated
2004 2003
Notes £’000 £’000
Fixed assets
Intangible assets 11 8,261 9,676
Tangible assets 12 2,703 4,524
Investments 13 — 72
10,964 14,272
Current assets
Stocks 14 8,423 7,414
Debtors 15 10,199 8,258
Cash at bank and in hand 932 690
19,554 16,362
Creditors: amounts falling due within one year 16 (23,021) (25,900)
Net current liabilities (3,467) (9,538)
Total assets less current liabilities 7,497 4,734
Creditors: amounts falling due after more than one year 17 (4,629) (88)
Provisions for liabilities and charges 18 (1,818) (1,669)
Net assets excluding pension liabilities 1,050 2,977
Pension liability 28 (5,602) (7,374)
Net liabilities (4,552) (4,397)
Capital and reserves
Called up share capital 21 12,117 11,542
Share premium account 22 38,728 37,828
Merger reserve 22 3,524 3,524
Other reserves 22 (2,429) (2,169)
Profit and loss account 22 (53,372) (52,002)
ESOT share reserve 22 (3,120) (3,120)
Equity shareholders’ deficit (4,552) (4,397)
Albert Klein Michael Williamson
Director Director
8 March 2005 8 March 2005
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 28 29 
Company balance sheet
at 31 December 2004
LTG Technologies PLC Annual Report and Accounts 2004 
As restated
2004 2003
Notes £’000 £’000
Fixed assets
Tangible assets 12 34 82
Investments 13 17,138 17,138
17,172 17,220
Current assets
Debtors 15 2,635 4,611
Cash at bank and in hand 22 47
2,657 4,658
Creditors: amounts falling due within one year 16 (8,175) (9,783)
Net current liabilities (5,518) (5,125)
Net assets 11,654 12,095
Capital and reserves
Called up share capital 21 12,117 11,542
Share premium account 22 38,728 37,828
Profit and loss account 22 (36,071) (34,155)
ESOT share reserve 22 (3,120) (3,120)
Equity shareholders’ funds 11,654 12,095
Albert Klein Michael Williamson
Director Director
8 March 2005 8 March 2005
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 29  30
Group cash flow statement
for the year ended 31 December 2004
 LTG Technologies PLC Annual Report and Accounts 2004
2004 2003
Notes £’000 £’000
Net cash outflow from operating activities 24(a) (497) (5,443)
Returns on investment and servicing of finance
Interest and similar charges paid (700) (690)
Interest and similar income received 42 86
Interest element of finance lease rental payments (10) (31)
(668) (635)
Taxation
Taxation paid 5 (357)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (279) (2,224)
Payments to acquire intangible fixed assets — (57)
Purchase of investments — (91)
Receipts from sales of tangible fixed assets — 222
(279) (2,150)
Acquisitions and disposals
Deferred consideration received on sale of Industrial Ovens division — 1,743
Sale of business – Crabtree of Gateshead Limited — 2,200
Net cash transferred with sale of business — (82)
— 3,861
Cash outflow before financing (1,439) (4,724)
Financing
Increase in long term borrowing 4,629 —
Issue of ordinary share capital 1,495 —
Share issue costs (20) —
Repayment of short term loans (716) (297)
Repayment of capital element of finance leases and hire purchase contracts (80) (219)
New short term loans 1,714 1,005
7,022 489
Increase/(decrease) in cash 24(b) 5,583 (4,235)
2004 2003
Note £’000 £’000
Increase/(decrease) in cash in the period 5,583 (4,235)
Increase in debt and lease financing (5,547) (489)
Change in net debt arising from cash flows 36 (4,724)
Exchange movement 5 279
Loans and finance leases disposed of with sale of business — 50
Movement in the year 41 (4,395)
Net debt at beginning of year (6,105) (1,710)
Net debt at end of year 24(b) (6,064) (6,105)
Reconciliation of net cash flow to movement in net debt
for the year ended 31 December 2004
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 30 31 
Notes to the accounts
for the year ended 31 December 2004
LTG Technologies PLC Annual Report and Accounts 2004 
1. Accounting policies
Basis of preparation
The accounts are prepared under the historical cost convention in accordance with applicable accounting standards.
In preparation of these financial statements the Group has adopted UITF 38 “Accounting for ESOP trusts” for the first time.
Further details are given below under Employee Share Option Trust.
Going concern
At 31 December 2004, the Group had net current liabilities of £3,467,000, net liabilities of £4,552,000 and had incurred a loss
for the year ended 31 December 2004 of £3,135,000.
The Directors continually monitor the financial position of the Group, taking into account the latest forecasts of future cash flows and
analyses of these forecasts, sensitised in respect of the key uncertainties facing the Group’s ability to generate cash. The Directors
consider that the major uncertainties are the timing of actual versus targeted sales in the Imagelinx division while it is building up
the client base for its pioneering services, and the Board is monitoring closely the strength of the underlying recovery of the
LTG Mailänder division, particularly given the current competitor activity and the uncertainty with regard to contributions
required for the Crabtree of Gateshead pension fund. This pension fund may be affected by the new Pensions Act due to become
law on 5 April 2005. The Board has identified cash savings which can be realised in the short term in both divisions, if necessary,
while minimising the effect on the Group’s global operating capability. The Group has also established improved loan and working
capital facilities at 31 December 2004.
Based on this information and assessment, the Directors have a reasonable expectation that the Group has adequate resources
to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis
in preparing the accounts.
The financial statements do not reflect any adjustments, which would be required, if the going concern assumption were not
appropriate. Given the uncertainty described above it is not currently possible to determine the extent and quantification of such
adjustments but these might include the write-down of the carrying value of goodwill at Group level and the investments in the
Company’s subsidiaries, at Company level, to the best estimate of their net realisable value on disposal, and the write-down of
certain assets and the disclosure of, or provision for additional liabilities.
Basis of consolidation
The Group accounts consolidate the accounts of LTG Technologies PLC and all its subsidiary undertakings drawn up to 31 December
each year. No profit and loss account is presented for LTG Technologies PLC as permitted by section 230 of the Companies Act 1985.
Results of companies acquired in the course of the year are consolidated from the date of acquisition.
An entity is treated as an associate undertaking where the Group has a participating interest and exercises significant influence
over its operating and financial policy decisions.
In the Group accounts, interests in associated undertakings are accounted for by using the equity method of accounting.
The consolidated profit and loss account includes the Group’s share of the operating results, interest, pre-tax results and attributable
taxation of such undertakings based on audited financial statements. In the consolidated balance sheet, the interests in associated
undertakings are shown as the Group’s share of identifiable net assets, including any unamortised premium paid on acquisition.
Quasi-subsidiary
A quasi-subsidiary is an entity, which although not fulfilling the legal definition of a subsidiary undertaking, gives rise to benefits
for the Group that are, in substance, no different from those that would arise were that entity a subsidiary.
The assets, liabilities, profits, losses and cash flows of the quasi-subsidiary have been consolidated in the Group financial statements.
Turnover
Turnover represents the amounts receivable from customers for goods sold and services provided, net of trade discounts and
excluding value added tax.
Government grants
Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the
expected useful lives of the relevant assets by equal annual instalments. Grants of a revenue nature are credited to income so as
to match them with the expenditure to which they relate.
Goodwill
Positive goodwill arising on acquisitions is capitalised, classified as an asset on the balance sheet and amortised on a straight line
basis over its useful economic life of 15 years. It is reviewed for impairment at the end of the first full financial year following
the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.
Concessions and rights
Amortisation is provided in equal annual instalments on the original costs of all concessions and rights, so as to write them down
to their residual value over their estimated useful lives, estimated to be three years. It is reviewed for impairment at the end of
the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the
carrying value may not be recoverable.
Research and development
Research and development expenditure is written off as incurred, except that development expenditure incurred on an individual
project is carried forward when its future recoverability can be reasonably regarded as assured. Any expenditure carried forward
is amortised in line with the lifetime of the related agreement.
Development costs – up to seven years.
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 31  32
Notes to the accounts cont…
for the year ended 31 December 2004
 LTG Technologies PLC Annual Report and Accounts 2004
1. Accounting policies cont…
Depreciation on tangible fixed assets
Depreciation is provided in equal annual instalments on the original costs of all tangible fixed assets, other than freehold land,
so as to write them down to their residual value over their estimated useful lives. The estimated useful lives are as follows:
Leasehold land and buildings – the lease term
Leasehold improvements – the lease term
Plant and machinery – three to ten years
Office equipment – four to ten years
Motor vehicles – four to five years
IT project costs – three years
The carrying values of tangible fixed assets are reviewed for impairment if events or changes in circumstances indicate the carrying
value may not be recoverable.
Stocks and work in progress
Stocks are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each product to its
present location and condition, as follows:
Raw materials and consumables – purchase cost, moving average
Work in progress and finished goods – cost of direct materials and labour plus attributable overheads based on
a normal level of activity
Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.
Long term contracts
Revenue and profit on long term contracts, including substantial contracts which are in progress at a period end, are recognised
when the outcome of the contract can be measured with reasonable certainty, on the basis of percentage completion.
Foreign currencies
Group – The balance sheets of the overseas companies are translated at the rate of exchange ruling at the balance sheet date.
The profit and loss statements of the overseas companies are translated at the average exchange rate for the period. The exchange
difference arising on the retranslation of opening net assets and the difference between the average and closing rate profit and
loss account is taken directly to reserves. All other translation differences are taken to the profit and loss account.
Company – Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction or at the contracted
rate if the transaction is covered by a forward exchange rate contract. Monetary assets and liabilities denominated in foreign
currencies are retranslated at the rate of exchange ruling at the balance sheet date or if appropriate at the forward contract rate.
All differences are taken to the profit and loss account.
Derivative instruments
The Group uses forward foreign currency contracts to reduce exposure to foreign exchange rates on operations. The Group
considers its derivative instruments qualify for hedge accounting when certain criteria are met.
A derivative instrument is considered to be used for hedging purposes when it alters the risk profile of an existing underlying
exposure of the Group in line with the Group’s risk management policies.
Interest differentials on derivative instruments are recognised by adjusting the net interest charge. Premiums or discounts on
derivative instruments are amortised over the shorter of the life of the instrument or the underlying exposure.
Currency swap agreements and forward exchange contracts are retranslated at the rates ruling at the balance sheet date. Resulting
gains or losses, where the instrument is used to hedge a committed future transaction, are deferred until the transaction occurs.
Prior year adjustment and Employee Share Option Trust (“ESOT”)
The cost of the Company’s shares held by the ESOTs is deducted from shareholders’ funds in the Company and Group balance
sheet. Any cash received by the ESOTs on disposal of the shares held is also recognised directly in shareholders’ funds.
Other assets and liabilities of the ESOTs (including borrowings) are recognised as assets and liabilities of the Company.
Any shares held by the ESOTs are treated as cancelled for the purposes of calculating earnings per share.
Previously, own shares held by the ESOTs were classified as investment in own shares within fixed asset investments as required
by UITF Abstract 13 “Accounting for ESOP trusts”. This year the Company has adopted UITF 38, which replaces UITF 13, and
which requires amounts paid and received by the ESOT trust for transactions in the Company’s own shares to be reported directly
in shareholders’ funds.
The effect of this accounting policy change on the comparatives is that net assets have been reduced by £86,000, arising from
the reclassification of investment in own shares to a reduction in shareholders’ funds. There was no impact on the profit and loss
account for 2003. Had this accounting policy not changed, current year net assets would have been £86,000 higher. The net
cumulative effect on recognised gains and losses for the year ended 31 December 2004 is an increase of £485,000.
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 32 33 
LTG Technologies PLC Annual Report and Accounts 2004 
1. Accounting policies cont…
Pensions
The Group operates one defined benefit pension scheme, now closed, which requires contributions to be made to separately
administered funds. The cost of providing benefits under the plan is determined using the projected unit credit actuarial valuation
method. Actuarial gains and losses are recognised immediately in the statement of recognised gains and losses. FRS 17 “Retirement
Benefits”, has been adopted early in accounting for this fund as the Group believes that this is the most appropriate way to treat
this aspect of the Group’s responsibilities.
The Group also provides for defined benefit pensions under German law at its German operations, which are accounted for in
accordance with FRS 17 in these financial statements. These contributions are in part unfunded. See note 28.
The Group operates a number of defined contribution schemes. Contributions are charged in the profit and loss account as they
become payable in accordance with the rules of the scheme.
The Group maintains an employee savings plan with employer participation in accordance with the provisions of Section 401(k)
of the US Internal Revenue code. Contributions are charged in the profit and loss account as they become payable in accordance
with the rules of the plan.
Leasing and hire purchase commitments
Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have
passed to the Group, and hire purchase contracts are capitalised in the balance sheet and are depreciated over their useful lives.
The capital elements of future obligations under leases and hire purchase contracts are included as liabilities in the balance sheet.
The interest elements of the rental obligations are charged in the profit and loss account over the periods of the leases and hire
purchase contracts and represent a constant proportion of the balance of capital repayments outstanding.
Rentals payable under operating leases are charged in the profit and loss account on a straight-line basis over the lease term.
Warranty costs
Provision is made for the estimated cost of meeting future warranty claims relating to sales made up to the balance sheet date.
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date
where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to
receive more, tax, with the following exceptions:
 provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on
disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date,
there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all
available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement
assets and charged to tax only where the replacement assets are sold;
 provision is made for deferred tax that would arise on remittance of the retained earnings of overseas subsidiaries, associates
and joint ventures only to the extent that, at the balance sheet date, dividends have been accrued as receivable; and
 deferred tax assets are recognised only to the extent that the Directors consider that it is more likely than not that there will be
suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing
differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 33  34
Notes to the accounts cont…
for the year ended 31 December 2004
 LTG Technologies PLC Annual Report and Accounts 2004
2. Turnover and segmental analysis
In the opinion of the Directors, the Group operates in two divisions with all significant operations being based either in Europe
(in the United Kingdom and Germany) or the United States. The segmental analysis of operations is as follows:
Segmental analysis by activity
Imagelinx LTG Mailänder Total
2004 2003 2004 2003 2004 2003
£’000 £’000 £’000 £’000 £’000 £’000
Group sales
Continuing 7,289 8,141 48,209 48,983 55,498 57,124
Discontinued — — — 1,592 — 1,592
Total 7,289 8,141 48,209 50,575 55,498 58,716
Group level sales 72 128
Total sales 55,570 58,844
Operating (loss)/profit
Continuing (1,549) (2,996) 1,440 1,947 (109) (1,049)
Discontinued — — — 420 — 420
Divisional operating (loss)/profit before 
exceptional items and goodwill amortisation (1,549) (2,996) 1,440 2,367 (109) (629)
Operating exceptional items (1,776) (6,199) — (113) (1,776) (6,312)
Total (3,325) (9,195) 1,440 2,254 (1,885) (6,941)
Group operating exceptional credit/(charge) 136 (142)
Common income/(costs) 88 (2,250)
(1,661) (9,333)
Goodwill amortisation (620) (620)
Group operating loss (2,281) (9,953)
Share of operating loss in associate — (19)
Non-operating exceptional items — 106
Net interest (668) (635)
Other finance expense (119) (142)
Amounts written off investments (72) —
Loss before tax (3,140) (10,643)
Net assets/(liabilities)
Allocated net assets/(liabilities) (2,192) (941) 1,168 1,199 (1,024) 258
Unallocated net liabilities (3,528) (4,655)
Total net liabilities (4,552) (4,397)
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 34 35 
LTG Technologies PLC Annual Report and Accounts 2004 
2. Turnover and segmental analysis cont…
Segmental analysis by geographical area
Non interest
bearing 
Sales by Sales by Operating net assets/
origin destination loss (liabilities)
2004 £’000 £’000 £’000 £’000
Europe 53,086 28,167 (340) 10,179
Asia 655 14,284 (257) (1,694)
Americas 3,904 5,925 (1,684) (6,041)
Rest of the world 14 9,283 — —
Intersegment (2,089) (2,089) — —
55,570 55,570 (2,281) 2,444
Interest bearing net liabilities (6,996)
Total net liabilities at 31 December 2004 (4,552)
2003
Europe 54,464 29,266 (8,623) 6,480
Asia 877 12,648 (374) (1,370)
Americas 5,363 13,786 (956) (3,495)
Rest of the world — 5,004 — —
Intersegment (1,860) (1,860) — —
58,844 58,844 (9,953) 1,615
Interest bearing net liabilities (6,012)
Total net liabilities at 31 December 2003 (4,397)
3. Other operating expenses
Other operating expenses are as follows:
2004 2003
£’000 £’000
Distribution costs
Continuing 764 700
764 700
Administration expenses
Continuing 16,069 20,593
Discontinued — 5
16,069 20,598
Operating exceptional items: continuing operations
Severance costs 738 607
Write-down of tangible fixed assets 714 5,654
Loss on disposal of fixed assets 78 51
Interest (gain)/cost of early redemption of a receivable (136) 142
Write-down of intangible assets 246 —
Total operating exceptional items 1,640 6,454
Goodwill amortisation: continuing operations 620 620
Total administration expenses 18,329 27,672
Total other operating expenses 19,093 28,372
Less goodwill amortisation (620) (620)
Other operating expenses 18,473 27,752
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 35  36
Notes to the accounts cont…
for the year ended 31 December 2004
 LTG Technologies PLC Annual Report and Accounts 2004
4. Operating loss
This is stated after charging/(crediting):
2004 2003
£’000 £’000
Auditors’ remuneration
– audit services – UK* – principal auditor 95 100
– audit services – overseas – principal auditor 14 19
– audit services – overseas – secondary auditor 82 91
191 210
– non-audit services – UK – principal auditor 38 28
– non-audit services – UK – secondary auditor — 292
– non-audit services – overseas – principal auditor 4 10
– non-audit services – overseas – secondary auditor 139 100
181 430
*£59,000 (2003: £61,000) of this relates to the Company
2004 2003
£’000 £’000
Research and development expenditure written off 660 645
Depreciation of owned assets 1,043 1,585
Depreciation of fixed assets held under finance leases 127 246
Amortisation of goodwill 620 620
Amortisation of intangible assets 565 448
Operating lease rentals
– land and buildings 1,501 1,870
– plant and machinery 274 463
Loss/(profit) on disposal of fixed assets 82 (59)
Rent receivable on operating leases — (59)
Exchange (gains)/losses (205) 264
Staff costs (including Directors) are as follows:
2004 2003
£’000 £’000
Wages and salaries 15,903 18,269
Social security costs 2,786 3,190
Other pension costs 410 369
19,099 21,828
The average monthly number of employees during the year was made up as follows:
2004 2003
No. No.
Direct labour 247 278
Operations 99 113
Sales 40 35
Administration 56 84
444 510
Details, for each Director, of remuneration, pension entitlements and interests in share options are set out in the Directors’
Remuneration Report on pages 22 to 24.
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 36 37 
LTG Technologies PLC Annual Report and Accounts 2004 
5. Exceptional items
2004 2003
£’000 £’000
Profit on disposal – Crabtree of Gateshead Limited — 106
6. Interest receivable and similar income
2004 2003
£’000 £’000
Bank interest receivable 9 1
Other interest receivable 33 85
42 86
7. Interest payable and similar charges
2004 2003
£’000 £’000
Bank loans and overdrafts 649 632
Finance charges payable under finance leases 10 31
Other loans 51 58
710 721
8. Tax on loss on ordinary activities
Tax on loss on ordinary activities
2004 2003
£’000 £’000
UK Current tax:
Adjustments in respect of previous years — —
Overseas tax:
Adjustments in respect of previous years (5) 37
(5) 37
Factors affecting the tax credit for the year
2004 2003
£’000 £’000
Loss on ordinary activities before tax (3,140) (10,643)
Loss on ordinary activities before tax multiplied by the standard rate 
of corporation tax in the UK at 30% (2003: 30%) (942) (3,193)
Effect of:
Disallowed expenses and non-taxable income (485) 959
Capital allowances in excess of depreciation (13) 179
Other timing differences (1) (60)
Adjustments in respect of previous periods 171 —
Tax losses 939 2,291
Effective overseas tax rate 326 (139)
Current tax charge/(credit) for the period (5) 37
9. Loss attributable to members of the Parent Company
The loss dealt with in the accounts of the Parent Company was £1,916,000 (2003: loss £19,324,000).
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 37  38
Notes to the accounts cont…
for the year ended 31 December 2004
 LTG Technologies PLC Annual Report and Accounts 2004
10. Loss per ordinary share
The calculation of basic loss per ordinary share is based on losses of £3,135,000 and on 237,630,071 ordinary shares, being the
weighted average number of ordinary shares in issue during the year. 4,425,002 shares held by ESOTs are excluded from the total
number of shares.
The calculation of basic loss per ordinary share for the prior year is based on losses of £10,680,000 and on 226,413,633 ordinary
shares, being the weighted average number of ordinary shares in issue during the year. 4,425,002 shares held by ESOTs are
excluded from the total number of shares.
There were no potentially diluted shares in both 2004 and 2003.
11. Intangible fixed assets
Concessions Development
Goodwill and rights costs Total
Group £’000 £’000 £’000 £’000
Cost:
At 1 January 2004 (as restated) 9,100 2,144 4,181 15,425
Exchange adjustment — 36 (14) 22
Disposals – US Can contract — (652) — (652)
At 31 December 2004 9,100 1,528 4,167 14,795
Amortisation:
At 1 January 2004 (as restated) 2,242 1,787 1,720 5,749
Exchange adjustment — 11 (5) 6
Provided during the year 620 82 483 1,185
Disposals – US Can contract — (406) — (406)
At 31 December 2004 2,862 1,474 2,198 6,534
Net book value:
At 31 December 2004 6,238 54 1,969 8,261
At 31 December 2003 6,858 357 2,461 9,676
The brought forward cost and accumulated amortisation values of goodwill have been decreased from the balances stated in the
2003 accounts to reflect the cost and accumulated amortisation of £6,609,000 in respect of LTG Gateshead Limited (formerly
Crabtree of Gateshead Limited), the trade and assets of which were disposed of in 2003. This has no impact on the opening
or closing net book value of intangible fixed assets. There is no impact on the profit and loss for the year.
12. Tangible fixed assets
Fixtures
Land and Plant and and IT project
buildings machinery fittings costs Total
Group £’000 £’000 £’000 £’000 £’000
Cost:
At 1 January 2004 991 3,462 5,283 1,253 10,989
Exchange adjustment — (64) (64) 3 (125)
Additions — 209 32 38 279
Disposals — (95) (170) — (265)
Transfer — 96 (451) 355 —
Disposals – Icon write-down — — — (969) (969)
At 31 December 2004 991 3,608 4,630 680 9,909
Depreciation:
At 1 January 2004 119 2,300 3,830 216 6,465
Exchange adjustment — (37) (26) — (63)
Provided during the year 48 810 271 41 1,170
Transfer — 38 (38) — —
Disposals — (51) (99) (216) (366)
At 31 December 2004 167 3,060 3,938 41 7,206
Net book value:
At 31 December 2004 824 548 692 639 2,703
At 31 December 2003 872 1,162 1,453 1,037 4,524
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 38 39 
LTG Technologies PLC Annual Report and Accounts 2004 
12. Tangible fixed assets cont…
The net book value of plant and machinery includes £42,000 (2003: £182,000) in respect of assets held under finance leases and
hire purchase contracts. Depreciation charged on these assets was £127,000 during the year (2003: £246,000).
The net book value of land and buildings (none of which are investment properties, and none of which arise in the books of the
Company) comprises:
2004 2003
Group £’000 £’000
Long leasehold 824 872
Fixtures
and
fittings
Company £’000
Cost:
At 1 January 2004 216
Additions 4
At 31 December 2004 220
Depreciation:
At 1 January 2004 134
Provided during the year 52
At 31 December 2004 186
Net book value:
At 31 December 2004 34
At 31 December 2003 82
13. Investments
Group
As a result of the adoption of UITF 38 “Accounting for ESOT trusts” (note 1), the investment in owned shares of £86,000 has
been reclassified as a reduction in shareholders’ funds, resulting in a prior year adjustment to the accounts. The adjustment had
no impact on the current or prior year results.
Associates Own shares Total
£’000 £’000 £’000
Cost:
At 1 January 2004 as previously stated 72 571 643
Prior year adjustment — (571) (571)
At 1 January 2004 as restated 72 — 72
At 31 December 2004 72 — 72
Amortisation:
At 1 January 2004 as previously stated — 485 485
Prior year adjustment — (485) (485)
At 1 January 2004 as restated — — —
Amount provided in the year 72 — 72
At 31 December 2004 72 — 72
Net book value:
At 31 December 2004 ———
At 31 December 2003 72 — 72
The Group’s share of its investment in Imagelinx Korea Co Ltd, which was set up on 1 April 2003, has been fully provided for as
there has been minimal trading during the year ending 31 December 2004 and there will be no trading going forward. As a result
the investment is no longer considered recoverable.
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 39  40
Notes to the accounts cont…
for the year ended 31 December 2004
 LTG Technologies PLC Annual Report and Accounts 2004
13. Investments cont…
Subsidiaries Own shares Total
Company £’000 £’000 £’000
Cost:
At 1 January 2004 as previously stated 44,325 571 44,896
Prior year adjustment — (571) (571)
At 1 January 2004 as restated 44,325 — 44,325
Additions 1,750 — 1,750
At 31 December 2004 46,075 — 46,075
Amortisation:
At 1 January 2004 as previously stated 27,187 485 27,672
Prior year adjustment — (485) (485)
At 1 January 2004 as restated 27,187 — 27,187
Amount provided in the year 1,750 — 1,750
At 31 December 2004 28,937 — 28,937
Net book value:
At 31 December 2004 17,138 — 17,138
At 31 December 2003 17,138 — 17,138
In reviewing the carrying value of the Company’s investments in subsidiaries, the Directors used a discount rate of 12.38%.
Principal investments
The Group has the following interest in subsidiaries:
Country of
incorporation
Name of undertaking Notes or registration Description of shares held
Imagelinx UK Ltd* (1) Great Britain Ordinary £1 shares
DRP Studios Limited (4) Great Britain Ordinary £1 shares
ITlinx GmbH (1) Germany Euro stock
Imagelinx USA Inc. (1) USA Common stock $10
Imagelinx Italia srl (4) Italy Euro stock
Imagelinx Japan Co. Ltd (4) Japan JPY stock
LTG Mailänder GmbH & Co. KG (2) Germany Euro stock
LTG Mailänder Verwaltungs GmbH (4) Germany Euro stock
LTG Mailänder Holding GmbH (3) Germany Euro stock
Tam Air Industrie (UK) Ltd (2) Great Britain Ordinary £1 shares
LTG Print Systems Holding GmbH (3) Germany Euro stock
LTG Smartcolour GmbH (1) Germany Euro stock
LTG Italia srl (2) Italy Euro stock
Nippon LTG KK (2) Japan JPY stock
LTG Gateshead Group PLC (3) Great Britain Ordinary £1 shares
LTG Gateshead Holdings Ltd (4) Great Britain Ordinary £1 shares
LTG of Gateshead Ltd (4) Great Britain Ordinary £1 shares
LTG Holdings (UK) Limited* (3) Great Britain Ordinary £1 shares
LTG Hong Kong Limited (4) Hong Kong Ordinary HK$1 shares
Crabtree Technologies (Shenzhen) Limited (4) China RMB stock
LTG Technologies Holdings Inc.* (3) USA Common stock $1
LTG Technologies Inc. (2) USA Common stock $1
The Group holds 100% of the nominal value of the issued stock of all of the above. The Company directly holds 100% of the
nominal value of those marked *. All Group companies have the same financial year ending 31 December.
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 40 41 
LTG Technologies PLC Annual Report and Accounts 2004 
13. Investments cont…
Principal investments cont…
The Group has the following interest in associates:
Country of
incorporation or
Name of associate Notes registration Holding Description of shares held
Graphic Vision and Innovation LLC (4) USA 30% Common Stock $1
Imagelinx Korea Co. Ltd (1) Korea 45% KRW stock
The following information is given in respect of the Group’s share in a joint venture, Graphic Vision and Innovation LLC. This has
been accounted for as a quasi-subsidiary. This company was dissolved on 3 February 2005.
2004 2003
£’000 £’000
Turnover — 175
Profit before tax 32 (253)
Fixed assets — —
Current assets — 9
Current liabilities (333) (711)
Net liabilities (334) (706)
Principal activities
1. Service provider to print suppliers and branded goods companies
2. Manufacturer and/or supplier of metal decorating print lines and ancillary equipment and services
3. Holding company
4. Not trading
All of the above companies operate principally in their country of incorporation or registration and are included in these
consolidated financial statements.
14. Stocks
2004 2003
Group £’000 £’000
Raw materials and consumables 3,829 4,832
Work in progress 4,530 2,355
Finished goods and goods for resale 64 227
8,423 7,414
The difference between purchase price or production cost of stocks and their replacement cost is not material.
15. Debtors
Group Company Group Company
2004 2004 2003 2003
£’000 £’000 £’000 £’000
Amounts falling due within one year:
Trade debtors 9,610 — 7,381 —
Amounts owed by Group undertakings — 2,623 — 4,500
Other debtors and prepayments 589 12 877 111
10,199 2,635 8,258 4,611
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 41  42
Notes to the accounts cont…
for the year ended 31 December 2004
 LTG Technologies PLC Annual Report and Accounts 2004
16. Creditors: amounts falling due within one year
Group Company Group Company
2004 2004 2003 2003
£’000 £’000 £’000 £’000
Current instalments due on loans (note 17) 1,714 — 716 —
Overdraft 622 75 5,968 5,900
Obligations under finance leases and hire purchase contracts (note 19) 31 — 86 —
Trade creditors 9,914 155 7,960 457
Amounts owed to Group undertakings — 7,616 — 2,963
Payments received on account 6,194 — 5,087 —
Other taxes and social security costs 819 39 532 47
Other creditors and accruals 3,727 290 5,551 416
23,021 8,175 25,900 9,783
The Group’s bank borrowings (loans and overdraft) are secured on certain assets of the Group.
17. Creditors: amounts falling due after more than one year
2004 2003
Group £’000 £’000
Loans 4,629 —
Obligations under finance leases and hire purchase contracts (note 19) — 25
Other creditors — 63
4,629 88
Analysis of loans
Amounts falling due:
In one year or less or on demand 1,714 716
Between one and two years 955 —
Between two and five years 2,867 —
In more than five years 807 —
6,343 716
Less included in creditors: amounts falling due within one year (1,714) (716)
4,629 —
The loan is repayable in equal annual instalments over the next six years, at an interest rate of 5.5%.
18. Provisions for liabilities and charges
Provision for
maintenance
warranties
Group £’000
At 1 January 2004 1,669
Exchange differences (4)
Arising during the year 927
Utilised (774)
At 31 December 2004 1,818
The provision for maintenance warranties of £1,818,000 (2003: £1,669,000) is calculated based on expected warranty claims
following past experience. The guarantee period can range from one to two years, though expense incurred is normally within
the first year. Actual costs are therefore expected to be incurred mainly within one year.
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LTG Technologies PLC Annual Report and Accounts 2004 
18. Provisions for liabilities and charges cont…
Deferred taxation
Deferred tax is not provided in the accounts as the Group and Company have an overall deferred tax asset, the timing of the
recovery of which is not sufficiently certain to recognise the asset.
Not Not
provided provided
2004 2003
Group £’000 £’000
Disclaimed capital allowances (587) (360)
Other timing differences (73) (994)
(660) (1,354)
Less losses (10,462) (5,561)
(11,122) (6,915)
No provision has been made for deferred taxation in respect of earnings which are retained overseas because the availability
of double tax relief should ensure that no tax will be payable on any earnings remitted to the United Kingdom.
Not Not
provided provided
2004 2003
Company £’000 £’000
Capital allowances (disclaimed)/in advance of depreciation (28) (25)
Losses (2,071) (1,341)
(2,099) (1,366)
19. Obligations under leases and hire purchase contracts
Amounts due under finance leases and hire purchase contracts:
2004 2003
Group £’000 £’000
Amounts payable:
– within one year 31 86
Amounts payable after more than one year — 25
31 111
Annual commitments under non-cancellable operating leases are as follows:
Land and Land and
buildings Other buildings Other
2004 2004 2003 2003
£’000 £’000 £’000 £’000
Operating leases which expire:
– within one year 101 64 1,734 167
– in two to five years 54 41 221 149
– in over five years 1,528 — 108 —
1,683 105 2,063 316
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 43  44
Notes to the accounts cont…
for the year ended 31 December 2004
 LTG Technologies PLC Annual Report and Accounts 2004
20. Derivatives and other financial instruments
An explanation of the Group’s objectives, policies and strategies for the role of derivatives and other financial instruments in
creating and changing the risks of the Group in its activities can be found on pages 7 and 8. The disclosures below exclude short
term debtors and creditors other than for currency disclosures.
Interest rate risk profile of financial liabilities
The interest rate profile of the financial liabilities of the Group as at 31 December was as follows:
Financial
liabilities on Floating
which no Fixed rate rate
interest is Financial financial
Total paid Liabilities liabilities
2004 £’000 £’000 £’000 £’000
Euro 6,619 — 6,563 56
Sterling 377 — 31 346
Total cost and net book value at 31 December 2004 6,996 — 6,594 402
The Euro liability represents bank borrowings subject to an interest rate of 5.5% and 7.25%. The Sterling floating rate liability is
subject to interest at 2.3% over the Royal Bank of Scotland base rate. Sterling fixed rate liabilities comprise finance leases for fixed
assets at varying rates of interest.
Financial
liabilities on Floating
which no Fixed rate rate
interest is Financial financial
Total paid Liabilities liabilities
2003 £’000 £’000 £’000 £’000
Euro 6,571 — 6,571 —
US Dollar 3—— 3
Sterling 221 68 111 42
Total cost and net book value at 31 December 2003 6,795 68 6,682 45
The prior year Euro liability represents bank borrowings subject to an interest rate of 8.75% and 8.00%. The prior year Sterling
floating rate liability is subject to interest at 2.00% over the HSBC base rate. Prior year Sterling fixed rate liabilities comprise
finance leases for fixed assets at varying rates of interest.
Fixed rate financial liabilities
Weighted Weighted
average average
Weighted period for Weighted period for
average which rate average which rate
interest rate is fixed interest rate is fixed
2004 2004 2003 2003
% Years % Years
Sterling 8.57 1 8.57 1
Euro 5.78 4 8.65 1
Interest rate risk profile of financial assets
The interest rate profile of the financial assets of the Group as at 31 December was as follows:
Financial
Floating assets on
rate which no
financial Interest
Total assets is received
2004 £’000 £’000 £’000
Euro 752 — 752
US Dollar 86 — 86
Yen 8— 8
RMB 12 — 12
HK Dollar 1— 1
Sterling 73 — 73
Cost and net book value at 31 December 2004 932 — 932
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 44 45 
LTG Technologies PLC Annual Report and Accounts 2004 
20. Derivatives and other financial instruments cont…
Interest rate risk profile of financial assets cont…
Financial
Floating assets on
rate which no
financial Interest
Total assets is received
2003 £’000 £’000 £’000
Euro 444 — 444
US Dollar 155 — 155
Yen 16 — 16
RMB 35 — 35
HK Dollar 1— 1
Sterling 39 — 39
Cost and net book value at 31 December 2003 690 — 690
The assets on which no interest is received comprises bank current accounts.
Currency exposures
As explained on page 7, the Group’s objectives in managing the currency exposures arising from its net investment overseas
(in other words, its structural currency exposures) are to maintain a low cost of borrowings while hedging against currency
depreciation on operational exposures. Gains and losses arising from these structural currency exposures are recognised in the
statement of total recognised gains and losses.
The table below shows the Group’s currency exposures; in other words, those transactional (or non-structural) exposures that
give rise to the net currency gains and losses recognised in the profit and loss account. Such exposures comprise the monetary
assets and monetary liabilities of the Group that are not denominated in the operating (or ‘functional’) currency of the operating
unit involved.
Functional currency of Group operation:
Net foreign currency monetary assets/(liabilities)
£ US$ € Total
2004 £’000 £’000 £’000 £’000
Sterling — — (116) (116)
US Dollar (25) — — (25)
(25) — (116) (141)
2003
Sterling — (3) (5,748) (5,751)
Euro 1—— 1
1 (3) (5,748) (5,750)
The amounts shown in the table above take into account the effect of forward foreign currency contracts entered into to manage
these currency exposures. As at 31 December, the Group also held open various forward foreign currency contracts taken out to
hedge expected future foreign currency sales.
Maturity of financial liabilities
The maturity profile of the Group’s financial liabilities at 31 December was as follows:
2004 2003
£’000 £’000
In one year or less, or on demand 2,367 6,770
In more than one year but not more than two 955 25
In more than two years but not more than five 2,867 —
In more than five years 807 —
6,996 6,795
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 45  46
Notes to the accounts cont…
for the year ended 31 December 2004
 LTG Technologies PLC Annual Report and Accounts 2004
20. Derivatives and other financial instruments cont…
Borrowing facilities
The Group has various borrowing facilities available to it. The undrawn committed facilities available at 31 December in respect
of which all conditions precedent had been met at that date are as follows:
2004 2003
£’000 £’000
Within one year 782 —
Fair values of financial assets and financial liabilities
Set out below is a comparison by category of book values and fair values of all the Group’s financial assets and financial liabilities
as at 31 December:
2004 2004 2003 2003
Book value Fair value Book value Fair value
£’000 £’000 £’000 £’000
Primary financial instruments
Short term borrowings and current portion of long term borrowings (2,336) (2,336) (6,684) (6,684)
Finance leases (31) (31) (111) (111)
Cash at bank and in hand 932 932 690 690
Derivative financial instruments held to hedge the currency exposure 
on expected future sales and settlements
Forward currency contracts —— — 134
Market values have been used to determine the fair value of forward foreign currency contracts.
Hedges
Gains and losses on instruments used for hedging are not recognised until the exposure that is being hedged is itself recognised.
Unrecognised gains and losses and deferred gains and losses on financial instruments used for hedging are as follows:
Gains Losses Total
2004 £’000 £’000 £’000
Gains and losses deferred at 31 December 2004 ———
Of which:
Gains and losses expected to be recognised in the profit and loss account in 2005 ———
Gains and losses included in the profit and loss account that arose in previous years 134 — 134
2003
Gains and losses deferred at 31 December 2003 134 — 134
Of which:
Gains and losses expected to be recognised in the profit and loss account in 2004 134 — 134
Gains and losses included in the profit and loss account that arose in previous years 324 — 324
21. Share capital
2004 2003
No. £’000 No. £’000
Authorised
Ordinary shares of 5p each 310,000,000 15,500 310,000,000 15,500
Allotted, called up and fully paid
Ordinary shares of 5p each 242,338,635 12,117 230,838,635 11,542
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 46 47 
LTG Technologies PLC Annual Report and Accounts 2004 
21. Share capital cont…
During the year, movements on ordinary shares were as follows:
2004
2004 Share 
Share premium
2004 capital (note 22)
No. £’000 £’000
At 1 January 2004 230,838,635 11,542 37,828
Issued during the year 11,500,000 575 900
At 31 December 2004 242,338,635 12,117 38,728
A cash consideration of £1,495,000 was received in respect of the share issue, being £575,000 share capital plus £920,000 share
premium. £20,000 share issue costs were incurred, which have been netted off the share premium account. Shares were allotted
to institutional investors in the United Kingdom. 11,500,000 shares were issued, with a nominal value of 5p each (£575,000) at
a price of 13p.
Shares held by the Company
At 31 December 2004 the following shares were held by the LTG Technologies PLC Employee Share Option Trust. Some options
over these shares have been granted to Directors and employees, while some shares remain available for distribution to
employees under the rules of the LTG Technologies Share Incentive Plan.
Date of grant Number of shares Period of option Price per share
January 2000 1,425,002 Jan 2002 – Dec 2009 40p
January 2001 333,000 Jan 2004 – Dec 2010 85p
April 2003 1,600,000 Apr 2006 – Apr 2013 3p – 4p
September 2004 976,979 Sept 2007 – Sept 2014 9.75p
Available for distribution 90,021 — —
Shares held 4,425,002 — —
22. Reserves
Share ESOT Profit
premium Merger share reserve Other and loss
account reserve (note 23) reserves account
Group £’000 £’000 £’000 £’000 £’000
At 1 January 2004 as previously stated 37,828 3,524 — (2,169) (55,036)
Prior year adjustment — — (3,120) — 3,034
At 1 January 2004 as restated 37,828 3,524 (3,120) (2,169) (52,002)
Shares issued in the year 920————
Share issue costs (20) ————
Loss for the year ———— (3,135)
Exchange loss on retranslation of net assets 
of subsidiary undertakings — — — (260) —
Actuarial gain ———— 1,765
At 31 December 2004 38,728 3,524 (3,120) (2,429) (53,372)
Other reserves comprise various capital reserves arising on consolidation plus foreign exchange differences arising on the
retranslation of subsidiary companies denominated in foreign currencies.
Share ESOT Profit
premium share reserve and loss
account (note 23) account
Company £’000 £’000 £’000
At 1 January 2004 37,828 — (37,189)
Prior year adjustment — (3,120) 3,034
At 1 January 2004 as restated 37,828 (3,120) (34,155)
Shares issued in the year 920——
Share issue costs (20) — —
Loss for the year — — (1,916)
At 31 December 2004 38,728 (3,120) (36,071)
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 47  48
Notes to the accounts cont…
for the year ended 31 December 2004
 LTG Technologies PLC Annual Report and Accounts 2004
23. ESOT shares
The Group’s and Company’s ESOT share reserve of £3,120,000 consists of 4,425,002 shares in the Company held by
LTG Technologies PLC Employee Share Trusts (2003: £3,120,000 consisting of 4,425,002 shares in the Company held by
the LTG Technologies PLC Employee Share Trust). 
The LTG Technologies PLC Employee Share Option Trust holds 1,425,002 costing £570,000 which were previously held in
investments. The nominal value of these shares is £71,000, the market value at 31 December 2004 £146,000.
The LTG Technologies PLC Employee Share Option Trust holds a further 3,000,000 shares issued during 2000 for £2,550,000,
which have previously been deducted from the profit and loss reserves. The nominal value of these shares is £150,000, the market
value at 31 December 2004 £308,000.
Some options over shares have been granted to Directors and employees, while some shares remain available for distribution to
employees under the rules of the LTG Technologies PLC Share Incentive Plan.
24. Notes to the statement of cash flows
(a) Reconciliation of operating loss to net cash outflow from operating activities
2004 2003
£’000 £’000 £’000 £’000
Operating loss (2,281) (9,972)
Depreciation of tangible fixed assets 1,170 1,831
Amortisation and impairment of intangible fixed assets 1,185 1,068
Loss on disposal of intangible fixed assets 246 —
Loss on disposal of tangible fixed assets 868 5,646
(Increase)/decrease in stocks (1,009) 1,236
Increase in operating debtors and prepayments (1,941) (443)
Increase/(decrease) in operating creditors and accruals 1,530 (3,971)
Increase/(decrease) in other provisions 149 (641)
Employers’ pension contribution (195) (216)
Share of loss in associate — 19
Exchange difference (219) —
1,784 4,529
Net cash outflow from operating activities (497) (5,443)
(b) Analysis of net debt
At At
1 January Exchange 31 December
2004 Cash flow movement Other 2004
£’000 £’000 £’000 £’000 £’000
Cash 690 237 5 — 932
Overdraft (5,968) 5,346 — — (622)
(5,278) 5,583 5 — 310
Other loans due within one year (716) (1,006) — 8 (1,714)
Long term loans due in more than one year — (4,621) — (8) (4,629)
Finance lease obligations (111) 80 — — (31)
Total (6,105) 36 5 — (6,064)
25.Post-balance sheet events
There were no significant post-balance sheet events relating to these financial statements.
26. Capital commitments
Amounts contracted for but not provided in the accounts amounted to £66,000 (2003: £Nil) for the Group; £Nil in either year for
the Company.
27. Contingent liabilities
The Group’s bankers have provided performance bonds, guarantees and indemnities at 31 December 2004 amounting to
£1,649,000 (2003: £476,000), in respect of which they have the right of recourse to LTG Mailänder GmbH & Co. KG. 
LTG Technologies PLC has given Company guarantees of £1,109,000 (2003: £1,203,000) in respect of prepayments received.
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LTG Technologies PLC Annual Report and Accounts 2004 
28. Pension commitments
LTG Technologies PLC
Certain members of the Board and other employees of LTG Technologies PLC are members of a defined contribution scheme
operated by the Company. This scheme is described in the Directors’ Remuneration Report on pages 22 to 24. The expense
charged to the profit and loss account in 2004 was £57,000 (2003: £78,000). The unpaid contributions outstanding at the
year-end, included in other creditors are £Nil (2003: £Nil).
LTG Gateshead Limited
The Company also operates a closed funded pension scheme providing benefits based on final pensionable pay for all eligible
employees. The assets of the scheme are held separately from those of the Group in an independently administered fund.
Contributions to the scheme are determined on the advice of a qualified actuary. With effect from 30 April 2000 the Crabtree
Pension Scheme ceased to accept new members and operated as a closed scheme. The ongoing responsibility to protect the
funding of pension liabilities accrued to 30 April 2000 remains with the Group.
LTG Mailänder GmbH & Co. KG
The Company operates an unfunded defined benefit scheme which is now closed to new entrants. Contributions to this scheme
are made on the advice of independent qualified actuaries using the Projected Unit Credit method. The aim is for the benefits
to be fully funded during the scheme members’ working lives. The regular pension cost is also assessed under the Projected Unit
Credit method. The pension cost for this scheme for the year was £15,000 (2003: £15,000).
On the balance sheet as at 31 December 2004 is a net pension liability of £5,602,000 (2003: £7,374,000). The statement of
recognised gains and losses is impacted by a credit of £1,765,000 (2003: charge of £1,221,000). The profit and loss account
was charged with £Nil in 2004 (2003: £Nil) in respect of employers’ contributions, while being charged with £119,000,
(2003: £142,000) in respect of other finance expenses. The valuation used for FRS 17 purposes has been based on the most
recent actuarial valuation at 5 April 2003 updated to 31 December 2004 by Mellon Actuaries and Consultants in respect of
LTG Gateshead Limited and by M&L Gesellschaft für Versicherungsmathematik mbH in respect of LTG Mailänder GmbH & Co. KG.
Scheme assets are stated at their market values at the respective balance sheet dates.
The major assumptions used by the actuary were:
At At At At At
31 December 31 December 31 December 31 December 31 December
2004 2003 2002 2001 2000
Rate of increase in pensions in payment 2.0%–2.5% 2.0%–2.5% 2.0% 2.0%–2.3% 2.0%–2.3%
Discount rate 5.3%–6.0% 5.4%–6.0% 5.5%–6.0% 5.8%–6.0% 6.0%
Inflation assumption 0%–2.5% 0%–2.8% 0%–2.3% 0%–2.6% 0%–2.6%
The assets in the scheme and the expected rate of return were:
Long term Long term Long term
rate of rate of rate of
return Value at return Value at return Value at
expected at 31 December expected at 31 December expected at 31 December
31 December 2004 31 December 2003 31 December 2002
2004 £’000 2003 £’000 2002 £’000
Equities 8.0% 7,930 7.8% 7,299 7.8% 6,226
Bonds 5.5% 2,089 6.0% 2,375 6.5% 2,873
Other 5.8% 1,717 6.0% 421 6.5% 479
31 December 31 December
2004 2003
£’000 £’000
Total market value of assets 11,736 10,095
Present value of scheme liabilities (17,338) (17,469)
Deficit in the scheme (5,602) (7,374)
Related deferred tax asset — —
Net pension liability (5,602) (7,374)
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 49  50
Notes to the accounts cont…
for the year ended 31 December 2004
 LTG Technologies PLC Annual Report and Accounts 2004
28. Pension commitments cont…
Analysis of the amount charged to operating profit
31 December 31 December
2004 2003
£’000 £’000
Employers’ contribution — —
Analysis of the amount charged/(credited) to other finance (expense)/income
31 December 31 December
2004 2003
£’000 £’000
Expected return on pension scheme assets 731 691
Interest on pension scheme liabilities (850) (813)
Pension scheme expenses — (20)
Net return (119) (142)
Analysis of amount recognised in statement of total recognised gains and losses (“STRGL”)
31 December 31 December
2004 2003
£’000 £’000
Actual return less expected return on pension scheme assets 1,139 53
Experience gains and losses arising on the scheme liabilities (91) 42
Changes in assumptions underlying the present value of the scheme liabilities 717 (1,316)
Actuarial gain/(loss) recognised in STRGL 1,765 (1,221)
Movement in deficit during the year
31 December 31 December
2004 2003
£’000 £’000
Deficit in schemes at beginning of the year (7,374) (6,175)
Movement in year:
Employers’ contributions 195 216
Other finance (expense)/income (119) (142)
Actuarial gain/(loss) 1,765 (1,221)
Exchange adjustment (69) (52)
Deficit in schemes at end of the year (5,602) (7,374)
The valuation at 31 December 2004 showed a decrease in the deficit from £7,374,000 to £5,602,000. Over the year ended
31 December 2004, the employer paid contributions of £195,000.
The exchange adjustment arises in respect of the LTG Mailänder GmbH & Co. KG unfunded defined benefit scheme which is
denominated in Euros.
History of experience gains and losses
31 December 31 December
2004 2003
Difference between the expected and actual return on scheme assets:
– amount (£’000) 1,139 53
– percentage of scheme assets 9.7% 0.5%
Experience gains and losses on scheme liabilities:
– amount (£’000) (91) 42
– percentage of the present value of the scheme liabilities (0.5%) 0.3%
Total amount recognised in statement of total recognised gains and losses:
– amount (£’000) 1,765 (1,221)
– percentage of the present value of the scheme liabilities 10.2% (7.4%)
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 50 51 
LTG Technologies PLC Annual Report and Accounts 2004 
28. Pension commitments cont…
LTG Technologies Inc. and Imagelinx USA Inc.
These companies maintain an employee savings plan with employer participation in accordance with the provisions of Section
401(k) of the US Internal Revenue code. All employees of age 21 or over and who have more than one year of service are eligible
to participate. The plan allows participants to make pre-tax contributions with the Company matching certain percentages as
determined by the Board of Directors. The percentage may change due to profitability of the Company.
This savings scheme is therefore similar to a defined contribution scheme in the manner of employer contributions. The expense
charged to the accounts in 2004 was £48,000 (2003: £84,000). The unpaid contributions outstanding at the year-end, included
in other creditors are £Nil (2003: £Nil).
Imagelinx UK Limited
Eligible employees are entitled to membership of a defined contribution Group plan. The expense charged to the profit and loss
account in 2004 was £106,000 (2003: £96,000). The unpaid contributions outstanding at the year-end, included in other
creditors are £14,000 (2003: £14,000).
Tam Air Industrie (UK) Limited
Eligible employees are entitled to membership of a defined contribution Group plan operated by AXA Equity and Law. Tam Air
makes a monthly pension contribution equal to 6% of the employee’s gross basic salary. Employees make a minimum pension
contribution of 4% of salary but may contribute more. The expense charged to the profit and loss account in 2004 was £8,000
(2003: £8,000). The unpaid contributions outstanding at the year-end, included in other creditors are £Nil (2003: £Nil).
29. Related party transactions
During the year, the LTG Technologies Group entered into transactions with companies which form part of the LTG Holding
GmbH & Co. KG group of companies. LTG Holding GmbH & Co. KG is a major direct and indirect shareholder of
LTG Technologies PLC, controlling 42.4% of the shares in the Company. Transactions were as follows:
Sales
2004 2003
£’000 £’000
LTG Holding GmbH & Co. KG group companies 310 460
Sales of products to LTG Holding GmbH & Co. KG group companies were made at prices determined in accordance with Group policy.
Services recharged by the LTG Technologies Group
2004 2003
£’000 £’000
LTG Holding GmbH & Co. KG group companies 211 205
These services comprised EDP services, subcontracted production services and maintenance services substantially as a part of
Group charges.
Services and rent recharged to the LTG Technologies Group
2004 2003
£’000 £’000
LTG Holding GmbH & Co. KG 2,448 2,449
These comprise rent and internal services rendered – mainly technical – recharged at prices determined in accordance with
Group policy.
Receivables
2004 2003
£’000 £’000
LTG Holding GmbH & Co. KG group companies 134 71
These principally comprise trade receivables.
Payables
2004 2003
£’000 £’000
LTG Holding GmbH & Co. KG group companies 154 1,320
These relate principally to rent and internal services rendered – mainly technical – recharged at prices determined in accordance
with Group policy.
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 51  52
Notice of Annual General Meeting
 LTG Technologies PLC Annual Report and Accounts 2004
NOTICE IS HEREBY GIVEN that the AGM of the Company will be held at 5 Old Bailey, London EC4M 7JX on 28 April 2005
at 10 a.m. for the following purposes:
1. To receive the Directors’ Report and Accounts for the year ended 31 December 2004 and the Auditors’ Report thereon.
2. To approve the Directors’ Remuneration Report as set out in the Annual Report for the year ended 31 December 2004.
3. To re-elect Peter Heizman, who is retiring by rotation, as a Director.
4. To re-elect Michael Williamson, who is retiring by rotation, as a Director.
5. To re-appoint BDO Stoy Hayward LLP as auditors.
6. To authorise the Directors to fix the remuneration of the auditors.
As special business to consider and, if thought fit, to pass resolutions 7 and 8 of which resolution 7 will be proposed as an
Ordinary Resolution and resolution 8 will be proposed as a Special Resolution:
7. That the Directors be and are hereby authorised to exercise all powers of the Company to allot relevant securities in accordance
with section 80 of the Companies Act 1985 (as amended or in force from time to time) (“the Act”) subject to the following
restrictions and provisions:
(i) this authority shall be limited to the allotment of relevant securities up to an aggregate nominal value of £1,211,693
(representing approximately 10% of issued share capital of the Company at the date hereof);
(ii) this authority shall expire at the conclusion of the next AGM of the Company to be held in 2006, save that the Company
may before such expiry make an offer or agreement which would or might require relevant securities to be allotted after
such expiry and the Directors may allot relevant securities in pursuance of such offer or agreement as if the authority
conferred hereby had not expired.
8. Subject to the passing of resolution 7 as an Ordinary Resolution, that the Directors be and are hereby empowered in terms of
section 95 of the Act to allot equity securities (as defined by section 94 of the Act) for cash pursuant to the authority conferred
by resolution 7 as if section 89(1) of the Act did not apply to such allotment, provided that such powers shall be limited to:
(i) the allotment of equity securities in connection with a rights issue in favour of ordinary shareholders where the equity
securities allotted are in proportion (as nearly as may be) to the respective number of ordinary shares held by such
ordinary shareholders subject to such exclusions and other arrangements as the Directors may deem necessary or
expedient; and
(ii) the allotment (otherwise than pursuant to paragraph (i) above) of such equity securities up to an aggregate nominal value
of £1,211,693 (representing approximately 10% of the issued share capital of the Company at the date hereof);
and provided that this power shall expire at the conclusion of the next AGM of the Company to be held in 2006.
By order of the Board
Michael Williamson
Secretary
8 March 2005
Notes:
1. A member of the Company who is entitled to attend and vote at the above meeting is entitled to appoint a proxy to attend
and, on a poll, to vote in his place. A proxy need not also be a member of the Company. The appointment of a proxy will not
preclude a member of the Company from attending and voting at the meeting if he so desires. CREST members may lodge
their proxy vote by utilising the CREST Proxy Voting system and should refer to the CREST User Manual for instructions.
2. The register of Directors’ share interests will be available for inspection at the registered office of the Company during normal
business hours up to and including the date of the AGM and will also be available for inspection at the meeting.
3. The Company specifies, pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, that only those shareholders
registered in the register of members of the Company 48 hours before the time for which the Meeting is called shall be
entitled to attend and vote at the AGM in respect of the number of shares registered in their respective names at that time.
Changes to entries on the register after that time will be disregarded in determining the rights of any person to attend or vote
at the AGM.
_0LTG_2004arb.qxd  24/03/2005  17:07  Page 52 LTG Technologies PLC is a listed company on the London
Stock Exchange and the Group comprises two specialist
divisions delivering services and products to the global
packaging industry.
1 Group financial highlights
2 Chairman’s statement
3 Chief Executive’s review
6 Financial review
10 Operational review: Imagelinx
12 Operational review: LTG Mailänder
14 Board of Directors
16 Directors’ report
18 Statement of Directors’ responsibilities in respect
of the accounts
19 Corporate governance
22 Directors’ remuneration report
25 Independent auditors’ report 
26 Group profit and loss account
27 Group statement of total recognised gains and losses
27 Reconciliation of movements in shareholders’ funds
28 Group balance sheet
29 Company balance sheet
30 Group cash flow statement
30 Reconciliation of net cash flow
to movement in net debt
31 Notes to the accounts
52 Notice of Annual General Meeting
53 Officers and advisers
 the LTG Mailänder division is a worldwide systems supplier and
manufacturer of the components for a complete production
line in metal decoration.
 Imagelinx is a packaging graphics service provider to
branded goods companies, delivering a global solution for the
accurate and consistent translation of creative content into
printed packaging.
T HE D ESIGN P ORTFOLIO
a member of the flathill communications group plc
www.flathillplc.com
designed & produced by
53 
Officers and advisers
Registered no:
3567041
Directors
David Straker-Smith
Non-executive Chairman
Albert Kenngott Klein
Chief Executive
Michael Williamson
Finance Director
Dr Ing Peter Elmar Heizmann
Non-executive Director
Dr Franz Wimpffen
Non-executive Director
John Holmes
Non-executive Director
Alistair Rae
Non-executive Director
Gregor Wedell
Non-executive Director
Company Secretary
Michael Williamson
Auditors
BDO Stoy Hayward LLP
8 Baker Street
London W1U 3LL
Bankers
Landesbank Baden-Württemberg
Am Hauptbahnhof 2
70137 Stuttgart
Germany
HSBC Bank PLC
110 Grey Street
Newcastle upon Tyne NE1 6JG
Royal Bank of Scotland
PO Box 7895
Nottingham NG1 7ZS
Financial adviser and broker
Seymour Pierce Limited
Bucklersbury House
3 Queen Victoria Street
London EC4N 8EL
Solicitors
Maclay Murray & Spens, London
5 Old Bailey
London EC4M 7JX
Registrars
Capita Registrars
Northern House
Woodsome Park
Fenay Bridge
Huddersfield HD8 0LA
Registered office
c/o Imagelinx
Julias Way
Station Park
Lowmoor Road
Kirkby-in-Ashfield
Nottinghamshire NG17 5HN
_cover.qxd  24/03/2005  16:50  Page 2 LTG Technologies PLC
Annual Report and Accounts 2004
LTG Technologies PLC
c/o Imagelinx
Julias Way
Station Park
Lowmoor Road
Kirkby-in-Ashfield
Nottinghamshire NG17 5HN
www.ltg-technologies.com
LTG Technologies PLC Annual Report and Accounts 2004
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