Genetix Group plc
Annual Report and Accounts 
for the year ending 31 December 2003
Genetix Group plc Annual Report and Accounts 2003
Genetix Group plc
Queensway
New Milton
Hampshire
BH25 5NN
United Kingdom
Tel +44 (0)1425 624600
Fax +44 (0)1425 624700
www.genetix.com
H1060_Genetix_Cover  12 3 2004  8:27 pm  Page 1 Contents
01 Highlights
02 Chairman’s statement
03 Key events of 2003
04 Focus on Strategic Business Units
06 Chief executive’s review
09 Financial review
10 Directors and company secretary
11 Scientific Advisory Board and Advisers
12 Directors’ report
18 Directors’ remuneration report
24 Independent auditors’ report
25 Consolidated profit and loss account
26 Consolidated and company balance sheets
27 Consolidated cash flow statement
28 Consolidated statement of total recognised gains and losses
28 Reconciliation of movements in consolidated shareholders’ funds
29 Notes to the accounts
41 Notice of Annual General Meeting
44 Five year summary
Genetix is a leading developer of automated solutions for the understanding
of systems biology.
We aim to:
 provide cutting edge tools for molecular biology, including genomics,
proteomics, cell biology and high-throughput screening;
 build close links with leading scientific groups around the world;
 create cost effective solutions based on our innovative technologies.
H1060_Genetix_Cover  12 3 2004  8:27 pm  Page 2 Genetix Group plc 1
Annual Report and Accounts 2003
Highlights
A year of investment
 Investment in new business structure
 Increased investment in sales and marketing team
 Continued excellence in R&D; three major new products developed and launched
 Continued profitability and cash generation
 Cash balance of £22.1m (after share re-purchase of £0.24m)
Profit before tax £m
(excluding exceptionals and goodwill – see page 44)
Turnover £m
1999 2000 2001 2002 2003
1 999 2000 2001 2002 2003
£7.3m
£10.7m
£12.4m
£12.6m
£10.8m
£2.3m
£2.6m
£3.2m
£3.6m
£0.8m
H1060_Genetix_Front  12 3 2004  8:25 pm  Page 1 2Genetix Group plc 
Annual Report and Accounts 2003
Chairman’s statement
Genetix faced challenging market conditions throughout 2003.
Overall, the biotechnology industry continued to suffer from a
lack of funding resulting in difficulties for many companies and
cash conservation by many research organisations. Against this
background, Genetix achieved turnover of £10.8 million
compared to £12.6 million in 2002 but remained both profitable
and cash generative, finishing the year with a cash balance of
£22.1 million. Profit before tax was £0.4 million compared to
£2.0 million last year, primarily as a result of poor sales in the
first half of the year, increased investment in our sales team, 
and new additions to the management team.
During the fourth quarter, we recruited Trevor Bell as Chief
Operating Officer, to manage the day to day operations of the
business and drive sales growth. Trevor has a broad range of
experience working in many different industries with particular
focus on sales and marketing. Since his appointment, he has
been heavily involved in the production of our business plan and
in driving through the processes required to make it a success.
A new Strategic Business Unit (SBU) structure was put in place
during the second half of the year to improve focus on driving 
the different segments of the business: Picking and Placing,
Microarraying, Liquid Handling, Reagents and Consumables.
This represents a major change in the organisational structure 
of the business as the SBUs have responsibility for the strategic
development and operating performance of their product groups.
Our continued investment in sales and marketing focused on
increasing our US sales and customer support team, under the
responsibility of a new experienced senior executive. These
actions intensify our efforts to compete more effectively in the
world’s largest and most important market.
Following this substantial organisational change, it is important
that we have the ability to attract and retain managers of the
highest calibre, aligning their interests with shareholders’
interests with performance related share options. For this reason
a resolution seeking an increase in the shares available under our
discretionary share option scheme will be proposed at the AGM,
full details of which are included in the Remuneration
Committee’s report and explanatory notes of the special 
business to be conducted at that meeting.
During the year, we focused primarily on developing and
launching three new products – the aliQuot, ClonePix and
QArrayMax. These were produced in response to customer needs
and will be among the key products for Genetix over the next few
years. Genetix continues to use its technical skill and ingenuity to
produce leading edge systems.
Despite the challenging market conditions during 2003, Genetix
took a major step forward by restructuring its business with a
view to generating significant future sales growth. We believe that
we have laid the foundations to take advantage of the many
opportunities open to us. The increased focus adopted during
2003 and improving market conditions means that we look
forward to a better performance in 2004.
John Morgan
Chairman
“Genetix took a major step forward by restructuring its business
with a view to generating significant future sales growth.”
H1060_Genetix_Front  12 3 2004  8:25 pm  Page 2 Key events of 2003
Focus on new product
development
New processes have been put in place
to help evaluate and prioritise projects
that clearly demonstrate a technical
advantage, with potential for significant
sales growth, and a strategic fit with
the longer-term goals of the business. 
Release of new
products
Three new products were introduced in
2003: the aliQuot, a fast and accurate
low volume liquid dispenser; the
ClonePix, an automated mammalian
cell picker; and the QArrayMax, a
sophisticated, high throughput biochip
instrument. 
New COO and Strategic
Business Units
During the year, we split our business
into four individual SBUs and
appointed a Chief Operating Officer and
new managers to implement the new
system. This new structure will ensure
that we maintain both responsibility
and accountability for driving through
key initiatives, with a stronger focus on
strategy and execution.
Expansion of US 
sales team
We made a series of key appointments
throughout the year, including a new
experienced VP of North American
Operations, new sales managers for
both the East and West coast and
additional customer support personnel.
We now have a firm base on which to
build our US business.
Genetix Group plc 3
Annual Report and Accounts 2003
H1060_Genetix_Front  12 3 2004  8:25 pm  Page 3 “Over the last two years, we have steadily
increased our share of this important
market.”
Sue Richards
Picking and placing relates primarily to the identification 
and manipulation of a variety of biological samples. 
Although Genetix is a leader within the genomics sector, 
the proteomics and cell biology markets are now targets 
for automation as genome sequences are exploited in 
the next stage of drug discovery and systems biology.
Applications
 Colony picking to support genome sequencing;
 Identification of antibody based pharmaceuticals;
 Measurement of protein – protein interactions for 
the identification of novel drug targets;
 Production of proteins for structure determination;
 Picking mammalian cells for biopharmaceuticals.
“Using proven core expertise in picking, 
we are expanding into new areas of protein
expression and cell biology.”
Ian T aylor
Focus on Strategic Business Units
During 2003, Genetix split its business into a number of key Strategic Business
Units (SBUs), designed to intensify the focus and attention applied to achieving
short-term targets and development of new opportunities.
4Genetix Group plc 
Annual Report and Accounts 2003
Microarraying Picking & Placing
Microarraying is the ordering of thousands of DNA or other
molecules in known positions onto small sheets, revolutionising
the way in which researchers conduct their study of genes,
proteins and other biomolecules. Thousands of genes can be
screened in a single experiment to identify those that react
differently or which contain disease-causing mutations.
Applications
 Expression profiling – comparing genes turned on 
in diseased and normal tissue;
 Screening for inherited mutations;
 Detecting regions of the genome amplified or deleted 
in diseased tissue;
 Identification of DNA sequences that contribute to 
complex diseases;
 Pharmacogenomic studies to determine whether a 
patient will respond positively to a particular drug.
H1060_Genetix_Front  12 3 2004  8:25 pm  Page 4 “We are aiming to establish a strong position in
the market with the aliQuot.”
Mark Reid
“Our way forward is the total systems
approach linked to our instrumentation.”
Andrew Maxwell
As scientific screening of compounds becomes more
sophisticated with greater sample numbers and smaller
volumes, there is a drive to dispense smaller volumes of
compounds with increased accuracy. Genetix has identified
this as a growth sector and has targeted its liquid handling
capability in this direction.
Applications
 High-throughput screening (HTS) in the 
pharmaceutical industry;
 Dispensing of cells for high content cellular 
screening tests;
 Accurate dispensing of solutions for DNA 
sequencing and protein identification; 
 Protein crystallography preparation;
 Dispensing of aqueous and non-acqueous solutions.
Reagents and Consumables are the disposable components
that are required to run instrumentation. Some products are
designed specifically for use with Genetix equipment whereas
others serve a wider range of customer. Consumables range
from wellplates, trays and slides to specialist reagents used
to enhance and reduce the cost of scientific experiments.
Applications
 High density wellplates for high-throughput 
screening and other liquid dispensing applications;
 Reagents and consumables for production of DNA
microarrays;
 High quality reagents for DNA sequencing (HalfBD 
and genCLEAN);
 Reagents for protein identification and expression studies;
 Reagents and consumables for protein arrays.
Genetix Group plc 5
Annual Report and Accounts 2003
Reagents & Consumables Liquid Handling
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Annual Report and Accounts 2003
Chief executive’s review
Introduction
The market volatility reported on at this time last year continued
well into 2003. We have seen the further consolidation of
companies in our sector and continuing uncertainty over funding
for the academic and biotechnology sectors. Around the middle 
of the year however, we saw an improvement in orders placed 
and there were visible signs that the financial markets were 
more receptive to investing in biotechnology once again. This
‘cautiously positive’ view has continued as we enter 2004. We
still encounter large variances in monthly order placement but 
the level of activity within the business gives us greater confidence
in our potential to improve on the past year’s performance. 
We believe the organisational and process improvement changes
put in place during 2003 will help Genetix in its efforts to deliver
enhanced sales and profit growth over the next few years. The
new SBU structure is already benefiting the business through
improved focus and direct accountability, and as a consequence,
Genetix will be more competitive in 2004. The ongoing
challenge is the execution and delivery of our plans, and
achieving the potential we believe is inherent in our business. 
Performance review
Sales improved in the second half of the year albeit 5% lower
than the same period last year. T urnover for the year was £10.8
million, despite challenging trading conditions encountered
during the year. Instrumentation sales suffered most from the
market uncertainty, with sales of £7.4 million, 19% lower than
in 2002. Consumables and services turnover was £3.4 million,
1% lower than 2002, as customers conserved funds for revenue,
rather than more expensive capital projects.
Throughout 2003, we invested a significant amount of time and
expense into building a management team capable of delivering
growth, and this process is ongoing. We have clearly set out 
our intention to achieve strong organic growth by investing in
people with proven ability to succeed, even if that means a
reduction in our short-term profitability in order to achieve 
longer-term success.
The increase in sales and administrative expenditure, together with
lower sales and continued investment in R&D, meant that profit
before tax (before goodwill of £0.4million) fell to £0.8 million.
The Group remains both profitable and cash generative.
Sales and marketing
Increased investment in sales and marketing throughout the year
resulted in the following important appointments of experienced
executives: 
 a senior sales executive to manage North America;
 additional sales and customer support staff in the US;
 two new managers to run our SBUs;
 a marketing communications manager.
A few key positions remain to be filled and we expect this to be
complete by the end of the first quarter 2004. The US remains our
most important market and the emphasis in 2003 has been very
much on strengthening this team and building the Genetix brand.
UK sales were on par with 2002, and accounted for 13% of total
sales. Sales to the rest of Europe were 9% higher than 2002,
largely due to the impact of currency. 
“We believe the organisational and process improvement changes
put in place during 2003 will help Genetix in its efforts to deliver
enhanced sales and profit growth over the next few years.”
H1060_Genetix_Front  12 3 2004  8:25 pm  Page 6 Genetix Group plc 7
Annual Report and Accounts 2003
The German market remained depressed throughout 2003 due to
cut backs in research funding and this is not expected to change
significantly during 2004. Sales to the US were 16% down on
2002, half of which was due to the weakness of the US dollar.
Elsewhere in the world, we continue to sell through a network of
worldwide distributors and believe we can improve our
performance in this area with sharper focus and support.
Product launches
During 2003, the main focus was on developing and launching
three major new products, as well as making enhancements to
several existing instruments. The main product initiatives were:
 aliQuot, the accurate low volume liquid dispenser, which has
potential applications across a variety of areas, including
pharmaceuticals;
 QArrayMax, an ultra high-throughput microarrayer;
 ClonePix, a new instrument for mammalian cell colony picking
using our core skills in imaging, picking and placing for cell
biology applications;
 refinement to the aQuire scanner, improving its sensitivity 
and software;
 development of QArray to become one of the leading
microarrayers in the market, including a high-throughput
option;
 several customised products were made for customers using
novel techniques, enhancing our knowledge of specialist
applications.
In 2004, all product launches will be controlled by our SBU
managers, together with specialist support from marketing. 
Research and Development
Genetix continued to increase its investment in R&D, with our
strategy focused on developing a modular and flexible range 
of technologies to broaden the current product range, and on
delivering new products to market quicker in the future.
Expenditure was controlled in line with market conditions and
was reduced to £1.4 million (£1.2 million after grant recoveries).
The year was dominated by the development of the aliQuot,
QArrayMax and ClonePix instruments, projects that involved 
the integration of different technologies to overcome difficult
technical challenges. 
Chief executive’s review continued
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Annual Report and Accounts 2003
With the introduction of new SBUs, our R&D projects will be
increasingly driven by the strategic direction of those business
teams, supported by a New Product Development Committee at
corporate level to approve the scientific and commercial viability
of any potential project.
Genetix was awarded two new contracts during the year. The EU
Gendisrupt Project was established in which Genetix, together
with partners from the Netherlands, Italy and Spain, will develop 
technologies for measuring changes in gene expression patterns
as a consequence of hormones found in the environment.
Genetix was also awarded a contract under the Oxford SPINE
(Structural Proteomics in Europe) project, lead by the University
of Oxford, to develop methods for high throughput protein
structure determination. These awards reinforce our strong
technological position in our chosen fields and give us access to
leading academic groups and networks. Work on the LINK grant
awarded last year has progressed well and the project has now
moved into its final phase of determining protein-protein
interactions in mammalian cells.
Acquisitions 
Although the primary focus of the Group is currently organic
growth, we are in a strong position to take advantage of
opportunities for acquisition. 
Outlook
As 2003 progressed, trading conditions improved and activity
levels increased across most areas of the business. The changes
made to the business in 2003 are designed to support growth in
turnover, underpinned by a structure that is able to sustain this
strategy. This means that in the short-term, an increase in sales
will not be matched by a similar growth in profitability, as our
organisation gears up for expansion.
While we believe that the current climate is improving, we
remain cautious about how quickly this will translate into better
funding for the biotechnology sector in general. Certain regions
such as Germany will remain difficult throughout 2004.
However, given our improved order book, our investment in staff
and a sustained high level of R&D, we anticipate a progressive
improvement in prospects over the course of 2004.
Mark Reid
Chief Executive
12% Rest of World
51% North America
24% Rest of Europe
13% United Kingdom
Turnover by geographic destination
68% Instrumentation
32% Consumables
and Services
Turnover by type
Chief executive’s review continued
H1060_Genetix_Front  12 3 2004  8:25 pm  Page 8 Genetix Group plc 9
Annual Report and Accounts 2003
Financial review
Results
Group turnover was down 14% at £10.8 million (2002: £12.6
million); Instrumentation accounted for 68% (2002: 72%) 
and Consumables and Services 32% (2002: 28%) of total 
sales. Sales of instrumentation were £7.4 million, down 19%;
consumables and services were £3.4 million, 1% lower 
than 2002.
The Group’s gross margin was 47% compared to 50% in 2002,
reflecting the reduced level of sales offset by tight control of direct
costs and a gain on exchange.
Gross R&D expenditure was £1.4 million (2002: £1.6 million);
after taking credit for grant recoveries of £0.2 million, the net
spend was £1.2 million.
Sales and administrative expenses increased mainly due to the
investment made in expanding the sales force in the US and
implementing the new SBU structure in the UK. Overall, the
Group’s operating margin was 0.2% (excluding goodwill),
compared to 12% in 2002, reflecting the lower sales and higher
cost base. The Group’s operating loss (including goodwill) was
£0.3 million (2002: profit £1.2 million).
Included within operating expenses are goodwill amortisation
costs of £0.4 million (2002: £0.4 million).
Net interest receivable was £0.8 million (2002: £0.8 million).
The Group’s effective tax rate was 16% (2002: 30%), lower
than the standard rate of 30% due to the resolution of prior
year’s tax matters with the Inland Revenue, and the continuing
benefit of the UK government’s R&D tax credit scheme.
Earnings per share were 0.49p (2002: 1.76p) based on a
weighted average of 72,076,770 shares in issue during 2003.
Adjusted earnings per share (excluding goodwill) were 0.99p
(2002: 2.23p).
We employed 104 people worldwide as at 31 December 2003.
Cash flow
The Group generated cash of £1.5 million (before financing
items, including exchange gains); after financing the share buy-
back of £0.3 million, cash increased by £1.2 million to end the
year at £22.1 million (2002: £20.9 million). 
Cash from operating activities was £1.1 million reflecting tight
control of working capital throughout 2003; stock levels
increased by £0.2 million; debtors fell by £0.3 million generally
reflecting the lower level of sales. Overall, working capital
represented 9.5% of sales.
The Group paid tax of £0.4 million (2002: £0.4 million paid;
£0.4 million tax refund).
Capital expenditure was £0.2 million (2002: £0.4 million) of
which £0.1 million was on patents.
Exchange rates
The results of the Group’s US and German subsidiaries were
translated into sterling at average exchange rates of £/$ 1.6453
(2002: 1.5089) and £/€ 1.4427 (2002: 1.5895) respectively;
the balance sheets were translated at the year end exchange
rates of £/$ 1.7901 (2002: 1.6099) and £/€ 1.4192 
(2002: 1.5342).
Gary Corsi
Finance Director
“Cash increased by £1.2 million to end the year at £22.1 million.”
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Annual Report and Accounts 2003
Mark Reid
Chief Executive
Aged 48, founded Genetix in 1991, formerly with KPMG,
London. Former non-executive director of Unimark Plastics
Limited (formerly Plastic Injection Limited), a supplier to 
the Group.
Trevor Bell 
Chief Operating Officer
Aged 46, former managing director (Northern Europe) of Remy
Cointreau S.A. in France, former director of global commercial
operations of Scholl plc and former president of Schwinn 
Fitness in the US.
Gary Corsi
Finance Director
Aged 46, former finance director of speciality chemicals group,
Inspec Group plc.
Dr Julian Burke
Scientific Director
Aged 51, founded Genpak in 1993, former reader at the
University of Sussex, specialising in biochemistry and molecular
neurobiology.
John Morgan
Non-Executive Chairman *
Aged 48, currently executive chairman of construction group,
Morgan Sindall plc.
Dr James Hill
Non-Executive Director *
Aged 58, former head of strategic product development and
senior vice-president of corporate affairs of SmithKline Beecham
until the merger with Glaxo Wellcome plc in December 2000.
Currently non-executive director of Diplema plc.
Peter Jensen
Non-Executive Director *
Aged 53, former chairman of SmithKline Beecham’s European
Consumer Healthcare operations and president of Worldwide
Supply Operations until the merger with Glaxo Wellcome plc in
December 2000. Currently non-executive director of Domino
Printing Sciences plc, Glenmorangie plc and Newmarket
Racecourses Trust Limited.
Simon Hedger
Company Secretary
Aged 48, former company secretary and executive committee
member of News Communications & Media plc.
* Member of Audit Committee and Remuneration Committee
Directors and company secretary
From left to right From left to right
H1060_Genetix_Front  12 3 2004  8:25 pm  Page 10 Genetix Group plc 11
Annual Report and Accounts 2003
Scientific Advisory Board and Advisers
Scientific Advisory Board
Professor Eric Davidson, currently Norman Chandler Professor
of Cell Biology, Division of Biology, California Institute of
Technology, USA.
Dr Roger Bumgarner, research scientist at the Department 
of Molecular Biology, University of Washington, Seattle, USA.
Dr Rod Wing, director of the Arizona Genomics Institute,
Arizona, USA.
Dr Sue Richards, director of Genetix Limited, former brand
manager at Life Technologies Limited and Research Fellow 
at the Cancer Research Campaign Beaston Institute.
Dr Julian Burke, see opposite.
Registered office
Queensway
New Milton
Hampshire
BH25 5NN
Company number
4024856
Company website
www.genetix.com
Advisers
Financial adviser and stockbroker
Panmure Gordon 
a division of Lazard & Co., Limited
50 Stratton Street
London
W1J 8LL
Auditors
Deloitte & Touche LLP
Mountbatten House
1 Grosvenor Square
Southampton
SO15 2BZ
Bankers
Barclays Bank plc HSBC Bank plc
PO Box 612 15-17 Cumberland Place
Ocean Way Southampton
Southampton SO15 2UY
SO14 2ZP
Financial PR Registrars
Financial Dynamics Lloyds TSB Registrars
Holborn Gate The Causeway
26 Southampton Buildings Worthing
London West Sussex
WC2A 1PB BN99 6DA
Solicitors
Olswang
90 High Holborn
London
WC1V 6XX
H1060_Genetix_Front  12 3 2004  8:25 pm  Page 11 12 Genetix Group plc 
Annual Report and Accounts 2003
Directors’ report
The directors submit their annual report together with the audited financial statements of the Company for the year ended 
31 December 2003. 
Reviews of the Company’s and the Group’s activities are given in the chairman’s statement on page 2, the chief executive’s review on
pages 6 to 8 and the financial review on page 9, which are to be regarded as part of this report. The presentation of information before
goodwill amortisation has been shown because the directors consider that this gives a useful indication of underlying performance.
Principal activities
The principal activity of the parent Company and its trading subsidiaries is the design, development, manufacture and marketing
of automated systems, services and consumables for genomic and proteomic research throughout the world. 
Results and dividends
The audited financial statements for the year ended 31 December 2003 are set out on pages 25 to 40. Profit on ordinary activities
after taxation was £0.4 million (2002: £1.4 million). The directors do not recommend the payment of a dividend (2002: £nil).
Research and development
The development of new technology is an integral part of the Group’s business and the Group continues to carry out research and
development in response to market needs and demand from the scientific community. All such costs are written off to the profit
and loss account as incurred.
Purchase of own shares
At the Annual General Meeting held on 25 April 2003, the Company was given authority to purchase its own shares. At that time,
the directors believed that it would be desirable to have flexibility to make such purchases in appropriate circumstances, such
purchases only being made to improve earnings per share for shareholders retaining their shares. In accordance with this policy,
during the year the Company purchased for cancellation 1,000,000 of its own ordinary shares for an aggregate sum of £240,000
(excluding expenses). This number of shares represented 1.38% of the issued share capital. Renewal of the authority will be
sought from shareholders at the forthcoming Annual General Meeting. Details of this resolution are set out in the explanatory 
notes on page 43.
The Board
The directors who served throughout the year, except as noted, were as follows:
M A Reid
T D Bell (appointed on 15 September 2003)
G S Corsi
Dr J F Burke
J C Morgan
Dr J F Hill
P S Jensen
Dr J F Hill and M A Reid retire in accordance with the Articles of Association and being eligible offer themselves for re-appointment.
T D Bell will retire in accordance with the Articles of Association and being eligible offers himself for election.
No director has a service contract of more than one year’s duration.
Directors’ and officers’ liability insurance cover is in place. 
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 12 Genetix Group plc 13
Annual Report and Accounts 2003
Directors’ report continued
Directors’ interests in shares
The directors who held office at 31 December 2003 had the following beneficial interests in the Company’s shares:
31 December 31 December
2003 2002
Number Number
M A Reid 42,551,267 42,551,267
T D Bell – –
G S Corsi 295,508 295,508
Dr J F Burke 1,506,766 1,506,766
J C Morgan 5,000,000 5,000,000
Dr J F Hill 18,796 18,796
P S Jensen 150,000 –
Full details of directors’ interests in approved and unapproved share options, other option agreements and savings related share
options are disclosed in the directors’ remuneration report on page 22.
Notes:
1 The beneficial holdings include holdings of spouses.
2 During the period 31 December 2003 to 22 February 2004 (being one month before the date of the notice of the Annual General Meeting) there were 
no directors’ share dealings.
Substantial shareholdings
Other than the holdings detailed under directors and their interests above, as at 22 February 2004, the Board was not aware 
of any member who had a notifiable interest of 3% or more of the share capital of the Company.
Changes in fixed assets
The changes in fixed assets of the Group during the year are set out in notes 10 to 12 on pages 33 and 34 of the accounts.
Corporate governance
In accordance with the Principles of Good Governance and Code of Best Practice (‘Combined Code’) the Board has carried out 
a review of the Group’s compliance for the year ended 31 December 2003. The Board believes that good corporate governance 
is fundamental to the successful management of the Company. This section of the directors’ report describes how the Company
has applied the principles set out in Section 1 of the Combined Code annexed to the Listing Rules. The new Code derived from
the reviews undertaken by Derek Higgs, on the role and effectiveness of non-executive directors, and Sir Robert Smith, on audit
committees, applies to reporting years beginning on or after 1 November 2003. The Board has commenced a review of its likely
approach to the new Code and accordingly it will comment in detail on how it has responded to the provisions of the new Code
within the framework of next year’s annual report.
Board structure
The Company is controlled through the Board of directors, which comprises four executive and three non-executive directors. 
The Board meets regularly, reviewing reports on the financial and operating performance against business targets and Group
objectives. An Audit Committee and Remuneration Committee are in place and are chaired by Mr Jensen and Dr Hill respectively.
The Audit Committee meets formally at least twice per year and monitors the adequacy of the Group’s internal financial controls,
accounting policies and practices and the form and content of financial reports and statements. It also provides the mechanism 
by which the Group’s external auditors report to the Board. The Remuneration Committee meets on an ad hoc basis throughout
the year as and when required. The directors’ remuneration report is provided on pages 18 to 23. Each committee operates within
defined terms of reference. There is a formal schedule of matters specifically reserved for the Board’s decision, and procedures are
in place, which allow directors to take independent professional advice in the furtherance of their duties. The Board now operates
under formal terms of reference when acting as the Nomination Committee.
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Annual Report and Accounts 2003
Directors’ report continued
All directors have access to the advice and services of the company secretary.
Although the directors possess a wealth of diverse business experience, they attend relevant training courses as appropriate.
There are two non-executive directors on the Board who are of varied business backgrounds who individually and collectively
exercise independence and bring a diversity of business perspective. 
Notwithstanding Dr Hill’s interest in share options granted on appointment disclosed on page 22, the Board considers that,
particularly in view of the relatively small size of that interest, Dr Hill is independent of management and free from business 
and other relationships that could interfere with his independent judgement.
Mr Morgan has an interest in the Company amounting to approximately 7% of the issued share capital and accordingly would 
not be regarded as an ‘independent’ non-executive director by the definition employed in the Combined Code. It is the view 
of the Board that this does not lessen the value of his contribution on the main Board nor as a member of Board committees.
The Board has identified Dr Hill as the senior independent non-executive director for the purposes of the Combined Code.
Non-executive directors’ terms of appointment are for an initial fixed period of one year and are reviewed thereafter on an annual basis.
The Combined Code requires that directors should be subject to re-election at intervals of not more than three years and this
requirement is reflected within the Company’s Articles of Association. 
Compliance
The directors consider that, other than the following exceptions, the Company has complied with the provisions set out in section
1 of the Combined Code throughout the year. While the main Board operates under formal terms of reference when acting as the
Nomination Committee, there is not a separate committee with the majority of its members being non-executive directors (A.5.1).
A Remuneration Committee has been established, which while consisting exclusively of non-executive directors, all members may
not be regarded as ‘independent’ by the definition employed in the Combined Code (B.2.2), as explained above.
Relations with shareholders
The Company acknowledges the importance of a dialogue with its institutional shareholders. The Company makes presentations 
to them and communicates regularly throughout the year. All shareholders have an opportunity to discuss the Group’s
development and performance at the Annual General Meeting.
Accountability and audit
Within the chairman’s statement on page 2 and the detailed review of the Company’s performance in the chief executive’s review on
pages 6 to 8, and the financial review on page 9, the directors seek to present a balanced and understandable assessment of the
Company’s financial position and prospects. The directors’ responsibility for the financial statements is described on page 16.
Internal control
The Combined Code introduced a requirement that the Board’s review of internal controls extends to all controls, including financial
and operational controls, compliance and risk management. Guidelines for directors on this requirement were published in
September 1999 (‘the Turnbull Guidelines’). The Board confirms that the procedures necessary to implement the guidelines 
have been established for the whole year and up to the date of approval of the annual report and accounts.
The Board is responsible for the Group’s systems of internal controls and for reviewing its effectiveness. Such systems are designed
to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute
assurance against material misstatements or loss. Such systems have been designed to meet the Group’s particular needs and
circumstances and the risks to which it is exposed.
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Directors’ report continued
The key procedures that have been established to provide effective internal controls are:
Risk assessment 
As part of the Company’s compliance with the Turnbull Guidelines, there is an ongoing process for identifying, evaluating and
managing risks and a system of risk assessment has been established. The assessments designed to identify strategic, financial,
compliance and operational risks across all areas of the Company’s business are systematically reviewed by the executive
management having regard to changes to the Group’s business environment. In particular the chief operating officer addresses
commercial risks at the time the Company’s operating plan is compiled in close consultation with senior business managers. 
The results of this exercise are formally reported to the Board.
Control environment
The Board sets the overall risk management policy for the Group, which is delegated to the executive management. The Group 
has taken the opportunity in adopting the Turnbull guidance, to underpin the principles of total quality management to more
effectively manage the business and embed internal controls and risk management further into the operations of the business.
Given the relatively small size of the Group, the senior management is able to demonstrate through its own actions, commitment 
to best business practices. In terms of the Group approval framework, there are procedures for expenditure matters including 
the authorisation of investments and capital expenditure. The Group has in place an organisational structure with defined lines 
of responsibility and delegations of authority. Upon joining the Company employees undergo a thorough induction programme 
and receive a staff handbook. 
Information and communication
The Group’s procedures include a comprehensive system for reporting financial and non-financial information to the Board. 
This includes the preparation and review of annual business plans and periodic strategic reviews, which are submitted to the
Board, the comprehensive review of the business at each board meeting, the monthly meeting of the management committee 
and the regular review of risk assessments and strategic risk. From time to time the Board receives presentations from
management about key areas of the Group’s operations.
Control procedures
Accounting policies and practices are disseminated throughout the Group. Measures taken include comprehensive signing-off
approvals, physical controls, segregation of duties, reviews by management and external auditors. Operational procedures are
under continual development having particular regard to changes in the law and regulations and managers’ handbooks are
updated accordingly. 
Monitoring process
There are clear procedures for monitoring the system of internal controls:
The chief executive and members of the management team regularly review the results of the risk assessment exercise. 
The impact and likelihood are re-evaluated and priorities reported to the Board and where appropriate, corrective action taken. 
Each half-year, the finance director carries out an internal self-certification of accounting functions requiring staff to actively
evaluate ongoing compliance with financial control disciplines.
The audit committee has formal terms of reference, which includes the review of internal control procedures and the Group’s 
risk management programme.
The Board considers that given the relative small size of the Group and the quality of financial controls, the appointment 
of an internal auditor is not merited.
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Annual Report and Accounts 2003
Directors’ report continued
Corporate responsibility
The Company has formulated its approach to the ABI’s guidelines on corporate responsibility within the Turnbull process. These matters
have been reviewed as part of the Company’s ongoing risk assessment process and as a consequence, the significance of social,
environmental and ethical (SEE) matters to the business of the Company is now regularly reviewed. Through this process the Board
receives adequate information to make an assessment of such matters and in this context no significant risks have been identified. 
In view of the relatively small size of the Company and the absence of heavy industry within its manufacturing processes, the
environmental footprint of the Company is not significant. Notwithstanding this, the Company is committed to embracing sound
environmental policies and practices. An environmental policy has been issued to all staff and key suppliers. A framework has
been established allocating responsibilities for the implementation of the policy and enabling the performance of the Company in
adhering to its policy to be monitored. Environmental matters maybe addressed by staff via the Company’s intranet. The Company
has also developed codes of conduct, which have been incorporated within staff handbooks, which include sections codifying the
Company’s position on promoting high standards of integrity and ethics in business conduct and encouraging diversity in the work
place. The Company’s principal operations are located within a single light manufacturing unit in the UK and is not exposed 
to the same risks associated with human rights faced by companies who operate in developing countries. It is believed that the
Company’s exposure to risks arising from SEE matters are principally reputational and that there are real business advantages to
enhancing and protecting the reputation of the Company in terms of attracting and retaining talented staff and enhancing its profile
with an increasingly demanding customer base.
The Company recognises that business activities have an influence on the community and accepts that it has a duty to carry 
out these in a responsible manner. In addition, the Company seeks to support education in its field of operations by engaging
sandwich students during their industrial year, work experience assignments and educational visits.
While the Company has complied with its policies and procedures for managing risks arising from SEE matters, it is the intention
to continue to develop those relating to the environment further in the ensuing year.
These disclosures have been compiled in conjunction with the risk assessment exercise carried out in December 2003 and
verified as part of that process.
In view of the relatively small size of the Company and the need to manage risks proportional to their significance, there is no present
intention to introduce any remuneration incentive relating to the handling of SEE risks or training of directors on such matters. 
Going concern
After making enquires, the directors have a reasonable expectation that the Group has adequate resources to continue operating
for the foreseeable future. For this reason, the going concern basis continues to be adopted in preparing the financial statements.
Statement of directors’ responsibilities
United Kingdom company law requires the directors to prepare financial statements for each financial year, which give a true and
fair view of the state of affairs of the Company and of the Group and of the profit or loss for that year.
In preparing those financial statements, the directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, subject to any material departures disclosed 
and explained in the financial statements; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company
and the Group will continue in business.
The directors are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the
financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act
1985. They are also responsible for the Group’s system of internal financial control, for safeguarding the assets of the Group 
and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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Directors’ report continued
Supplier payment policy
It is the Group’s policy to pay suppliers in accordance with their agreed terms and conditions. Such terms and conditions are
agreed with the supplier in advance and the Group aims to comply with such terms once satisfactory performance is achieved. 
At 31 December 2003 average creditors age was 53 days (2002: 41 days).
Employment of disabled persons
In considering applications for employment from disabled people the Company seeks to ensure that fair consideration is given 
to the abilities and aptitudes while having regard to the requirements of the job for which he or she has applied. Employees who
become unable to carry out the job for which they are employed are given individual consideration and depending on the nature,
severity and duration of the disability, may be considered for alternative work.
Health, safety and the environment
The Group is committed to the maintenance of high standards of practice concerning the health and safety of its employees. 
The Group recognises its legal obligations in this respect and compliance with such obligations and a number of policies on such
matters are monitored through a health and safety committee. The Company is sensitive to the needs of the environment. Such
matters are considered in the context of the Company’s environmental policy, which is described within that section dealing with
corporate responsibility. 
Employee involvement
The Company is committed to a policy of developing employee involvement and awareness on matters of concern to all employees
throughout the Group, information being disseminated through formal and informal meetings, written communications and notices.
Consultation procedures exist with staff covering such matters as health and safety and other areas connected with their employment.
The Company has established discretionary and sharesave share option schemes with the objective of giving employees an
opportunity to invest in the future of the Company, encouraging a sense of involvement and aligning employees interests with
those of shareholders.
Charitable and political donations
No charitable donations or political donations were made during the year.
AGM
The notice describing the ordinary and special business at the Company’s fourth Annual General Meeting to be held on 
Friday 30 April 2004 is set out on pages 41 and 42. Details of the special business are set out on page 43. Biographical details 
of directors submitting themselves for election are set out on page 10.
Auditors
On 1 August 2003, Deloitte & Touche, the Company’s auditors transferred their business to Deloitte & Touche LLP , a limited
liability partnership incorporated under the Limited Liability Partnerships Act 2000. The Company’s consent has been given 
to treating the appointment of Deloitte & Touche as extending to Deloitte & Touche LLP with effect from 1 August 2003 under 
the provisions of section 26(5) of the Companies Act 1989. A resolution to re-appoint Deloitte & Touche LLP as the Company’s
auditor will be proposed at the forthcoming Annual General Meeting.
By order of the Board
S C Hedger
Secretary
2 March 2004
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Annual Report and Accounts 2003
Directors’ remuneration report
Introduction
This report has been prepared in accordance with the Directors’ Remuneration Report Regulations 2002, which introduced new
statutory requirements for the disclosure of directors’ remuneration in respect of periods ending on or after 31 December 2002. The
report also meets the relevant requirements of the Listing Rules of the Financial Services Authority and describes how the Board has
applied the Principles of Good Governance relating to directors’ remuneration. As required by the Regulations, a resolution to approve
the report will be proposed at the Annual General Meeting of the Company at which the financial statements will be approved.
The Regulations require the auditors to report to the Company’s members on the ‘auditable part’ of the directors’ remuneration report
and to state whether in their opinion, that part of the report has been properly prepared in accordance with the Companies Act 1985
(as amended by the Regulations). The report has therefore been divided into separate sections for unaudited and audited information.
Unaudited information
Remuneration Committee
The membership of the Remuneration Committee (‘the Committee’) is wholly made up of non-executive directors namely Dr Hill
(chairman), Mr Morgan and Mr Jensen. Members of the Committee are in attendance at the Company’s Annual General Meetings.
The Committee is a committee of the Board and has been established with formal terms of reference approved by the Board. 
The Committee has authority to determine the remuneration, benefits and employment conditions for executive directors and 
in this connection the Committee meets as required and sets the policy for the administration of the Company’s approved and
unapproved share option schemes. The chief executive and company secretary attend meetings of the Committee at its invitation.
Remuneration policy
The Committee seeks to put into place remuneration packages, which will enable the Company to motivate, attract and retain
executive directors of sufficient calibre to contribute to the development of the business and the Group’s progress. In developing
remuneration policy and fixing remuneration, consideration is given to remuneration packages of executive directors in groups 
of a comparable size. As part of this process, the Company both participates in, and subscribes to, relevant independent survey
reports. The current remuneration policy has regard to the early stage in the Group’s development. As the Group grows in size 
and complexity the Committee will consider the introduction of broader remuneration packages. The relative importance of the
component parts of the remuneration packages will be determined as the Group grows, until that time the focus of relating the
remuneration packages to performance is performance related share options as described in this report. The Committee has
established a performance related bonus scheme for the chief operating officer as part of his recruitment package, the details 
of which are set out below. The chief executive advises the Committee on executive directors’ remuneration and on individual
performance other than for himself. The Committee having regard to the global nature of the Group’s markets will, on a case by
case basis, be mindful of the specific demands of the job market in a particular country or region should the Group’s development
require the international recruitment of senior executives. No director is involved in determining their own remuneration. The
Committee’s present policy is to offer executive directors six month rolling contracts being comfortably in accordance with best
practice. The main Board has established the policy for directors’ fees, within the limits provided for by the Articles of Association,
having regard to the need to attract non-executive directors of sufficient calibre to provide strategic drive and vision for the Group’s
ongoing development. In appropriate circumstances, non-executive directors will be offered shares in lieu of a proportion of their
fee entitlement. 
Basic salary
The basic salary for each executive director is established by the Committee and is reviewed on an annual basis in accordance
with the terms of service contracts. Such reviews will take into account the responsibilities and experience of each individual 
and have regard to appropriate sources of data including independent surveys on similar positions held in comparable companies.
Reviews would also take place in the event of major organisational change.
Benefits in kind
At the date of this report, directors do not receive benefits in kind. The Committee will keep this matter under review as the 
Group develops.
Annual bonus
The Committee will continue to review the merits of establishing an annual bonus scheme based on annual and longer-term
performance measures of the Group as it develops. In the case of the chief operating officer, the Committee has agreed that 
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Annual Report and Accounts 2003
Directors’ remuneration report continued
as part of his recruitment package, he should participate in an annual bonus scheme. The scheme will provide the chief 
operating officer with an opportunity to achieve an annual bonus of up to 50% of his salary payable quarterly against agreed
targets to be established by the Committee. Such a scheme would include measurable and quantitative criteria related to financial
performance of the Group. In exceptional circumstances, the Committee would consider the payment of a special bonus where 
an individual director’s performance merits an award outside the annual bonus scheme.
Compensation for loss of office
During the financial period under review, no payment has been made to a former director as compensation for loss of office. 
The duty to mitigate will be taken into consideration as appropriate when determining any severance payment.
Sums paid to third parties in respect of directors’ services
During the financial period under review, no payment was made to a third party in respect of directors’ services. 
Pensions
At the date of this report, there are no pension arrangements in force provided by the Company for directors. The Committee 
will continue to keep this under review as the Group develops.
Service Contracts
Details of service contracts for executive directors who served during the financial year can be summarised as follows: 
Date of commencement Unexpired term
M A Reid 01/10/00 6 months
T D Bell 15/09/03 6 months
G S Corsi 01/08/00 6 months
Dr J F Burke 01/07/01 6 months
Each contract is for a six month rolling term and subject to a six month notice period. 
No fixed contractual sum is payable on termination. Other than in cases of gross misconduct and protracted ill-health provided 
for in their individual service contracts, all executive directors would at present have an expectation of a termination payment 
not exceeding six months salary in the event of the early termination of their service contract by the Company. No termination
payments have been made to former directors. Non-executive directors’ appointments are subject to letters of appointment, which
provide for the terms of appointment to be reviewed on an annual basis at the time of their respective anniversary of appointment.
Prior to that time either party may terminate the appointment by giving not less than three months notice. The commencement
dates for non-executive directors’ current terms of appointments are as follows:
J C Morgan 11/10/03
Dr J F Hill 05/02/04
P S Jensen 23/12/03
All directorships are subject to the overriding provisions of the Company’s Articles of Association and the requirement to seek 
re-election by shareholders at General Meetings at required intervals.
The Company recognises that its executive directors may be invited to become non-executive directors of other companies and that
exposure to such non-executive duties can broaden a director’s experience to the benefit of the Company. Each case is considered
on its own merits.
Share options
The Company believes that share ownership by executive directors and other senior and key staff establishes a firm link between
their personal interests and those of the shareholders. The executive directors are eligible to participate in the Company’s approved
and unapproved share option schemes, which were established in October 2000. It is intended that the granting of the options is
phased over the life of the schemes. The Committee has, following discussions with its advisers, formulated an eligibility policy for
executive directors, which spreads the potential grant of options throughout the ten year life of the schemes. At present the
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Directors’ remuneration report continued
maximum value of options under this policy, which may be awarded to executive directors would be subject to a ceiling of options
to the value, at the time of grant, equating to four times salary, with a maximum value of one times salary in any one year. Options
granted pre-flotation are excluded from the calculations. In considering the recruitment needs of the Board, the Committee will have
regard to the specific demands of the job market at the time and in special cases, having particular regard to internationally based
positions, consider the acceleration of such option awards in appropriate circumstances. In the case of the recruitment of the chief
operating officer, in order to secure the appointment of an individual of the required calibre with the appropriate depth of commercial
experience, it was necessary to waive the principle of phasing for both ordinary and super options.
Option awards are normally considered by the Committee following the publication of annual results and interim results and 
if appropriate, granted during a 42 day period following the announcement of those results. Other than on recruitment, option
awards outside these time frames would not normally take place unless exceptional circumstances prevail. 
Super options are subject to more demanding performance conditions and are granted on a case-by-case basis to deal with
specific business needs. These options are subject to a maximum ceiling of four times salary during the life of the schemes 
and normally a maximum value of one times salary in any one year. As in the case with ordinary options, the Committee will 
have regard to the specific demands of the job market and consider the acceleration of such option awards in appropriate
circumstances. The performance target in respect of the super options granted to the chief operating officer is the percentage
growth in adjusted EPS (adjusted for exceptional items and goodwill) of the Group during a performance period of five years 
to exceed the percentage growth in RPI during the period by a minimum of 35% p.a. in which case 50% of the options will vest.
Compound percentage growth of 40% p.a. and 45% p.a. is required before 75% and 100% respectively vest. The performance
in aggregate is calculated over the five year period to determine whether the shares under option are exercisable whereby under
performance in any one year or years may be clawed back by over performance in other years during the five year period. 
The first tranche of options, which were granted to executive directors and other key staff immediately before admission to trade 
on the London Stock Exchange, were not subject to performance criteria. The grant of these options was considered a necessary
step to attract and retain staff during a significant period in the Company’s development. Options granted subsequently, not regarded
as super options, are subject to performance criteria, which were chosen after discussions with the Company’s advisers as being
appropriate for the Company without a clearly identifiable peer group at its early stage of development. The vesting of such options
is stepped in proportion to the increased performance of the Group. The performance target is the percentage growth in adjusted
EPS (adjusted for exceptional items and goodwill) of the Group during the performance period of three years to exceed the
aggregate percentage growth in RPI during the period by a minimum of 9% in aggregate in which case 50% of the option will
vest. Percentage growth of 12% and 15% is required before 75% or 100% respectively vest. If the performance conditions are
not achieved in the initial three year period, the performance period will be extended to five years and in such circumstances the
performance target is increased proportionally to reflect the additional time available. If the performance condition is not met
within five years, the options will lapse. Methods of reviewing whether these performance conditions have been met are, in view
of their simplicity, largely mechanistic in nature and will at the appropriate time of potential vesting of options be examined in
conjunction with the Company’s advisers. 
Resolution 7 being put to shareholders at the forthcoming Annual General Meeting refers to proposals put forward by the
Committee for changes to the overall scheme limits for the Company’s share option schemes. The proposed changes will affect
both the Company’s discretionary schemes (the ‘Discretionary Schemes’) for basic and super options and the Company’s
sharesave scheme (the ‘Sharesave Scheme’).
Currently under the Discretionary Schemes, ordinary options can be granted up to 5% of issued share capital and super options
can be granted up to a further 5%. In addition, when calculating the overall 10% limit account must also be taken of options
granted under the Sharesave Scheme.
It is proposed that the overall limit is increased to 13% of the Company’s issued share capital. This overall limit will be rationed 
as to 9.4% under the Discretionary Schemes (to be granted as either basic or super options at the Committee’s discretion) and 
the remaining 3.6% under the Sharesave Scheme.
The proposals, if adopted, would result in a redistribution of the dilution limits in favour of basic options granted under the
Discretionary Schemes. 
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Directors’ remuneration report continued
Historically the Committee has operated a policy, which has resulted in the grant of ordinary options under the Discretionary
Schemes to all levels of staff throughout the Group. This, together with the significant headroom remaining on the Sharesave
Scheme, has lead the Committee to the conclusion that, in addition to increasing the overall limit from 10% to 13%, it would be
appropriate to redistribute a proportion of the dilution limit currently attributable to the Sharesave Scheme to the Discretionary
Schemes for the future grant of ordinary options. 
The Committee will maintain the existing performance conditions in relation to all ordinary options granted under the Discretionary
Schemes in the future. Details of the performance conditions are set out on page 20 of this Annual Report within the
Remuneration Committee’s Report. 
The main purpose of the proposal is to ensure that the Discretionary Schemes have sufficient headroom to accommodate the
Company’s plans to develop its business and invest in its sales and marketing infrastructure throughout its global markets. The
Company has been reorganised to become increasingly market-led with the recruitment of senior business managers and support
staff. The Company’s activities have been divided into four business units and further staff will be recruited to exploit the new
business opportunities accruing as a result. In order to meet its objectives, it is essential that the Company recruits and retains
staff of sufficient calibre to execute these plans and add value to the business. The Committee considers that share options 
are a vital tool in achieving this.The Committee has also formulated these proposals against the background of continuing
investment in the US where plans to build critical mass in this key market are dependent on the recruitment and retention of key staff. 
In addition to the plans to drive the Company forward organically, the Committee is mindful that in the event of acquisitions taking
place, it would be essential to provide any management team acquired with the new business with incentives within the existing
scheme in order to align their interests with the new enlarged entity and existing management.
The Committee would, other than in exceptional circumstances, continue to operate its policy of phasing the grant of options 
to individuals over the life of the Discretionary Schemes.
The Committee has reviewed other methods of sourcing shares for the future grant of options. However, as these would require 
the availability of existing shares to be released on the exercise of options, these other methods were not pursued in view of the
likely impact on the free float in the market for the Company’s shares. 
Performance graph
The following graph shows the Company’s performance, measured by total shareholder return, compared with the performance 
of the Techmark All-share Index also measured by total shareholders return. The Company forms part of this index and in the
absence of a direct peer group is regarded as appropriate for comparative purposes. 
Return index since flotation in November 2000 for Techmark All-share Index as at 31 December 2003
2001 2002 2003
0
20
40
60
80
100
120
140
GENETIX – TOTAL RETURN INDEX
FTSE TECHMARK ALL-SHARE – TOTAL RETURN INDEX
Source: DATASTREAM
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Annual Report and Accounts 2003
Directors’ remuneration report continued
Audited information
Directors’ share options
Options granted to directors under the Genetix Group plc (Approved) and (Unapproved) 2000 Share Option Schemes, other option
agreements and the Sharesave Scheme 2000 are set out as follows:
At 1 Jan At 31 Dec Exercise
Note 2003 Granted Lapsed 2003 price Normal exercise period
M A Reid
Executive (unapproved) 1 66,667 – – 66,667 150p 24 Nov 2003-23 Nov 2010
Executive (unapproved) 2 97,744 – – 97,744 66.5p 5 Mar 2005- 4 Mar 2012
164,411 – – 164,411
T D Bell
Executive (approved) 2 – 58,252 – 58,252 51.5p 15 Sep 2006-14 Sep 2013
Executive (unapproved) 2 – 640,777 – 640,777 51.5p 15 Sep 2006-14 Sep 2013
Executive (unapproved) 
Super Options 3 – 1,242,718 – 1,242,718 51.5p 15 Sep 2008-14 Sep 2013
– 1,941,747 – 1,941,747
G S Corsi
Executive (approved) 1 20,000 – – 20,000 150p 24 Nov 2003-23 Nov 2010
Executive (unapproved) 1 46,667 – – 46,667 150p 24 Nov 2003-23 Nov 2010
Executive (unapproved) 2 97,744 – – 97,744 66.5p 5 Mar 2005-4 Mar 2012
Sharesave 17,757 – – 17,757 53.5p 1 Jun 2005-1 Dec 2005
182,168 – – 182,168
Dr J F Burke
Options 1 66,667 – – 66,667 150p 11 Nov 2003-10 Nov 2010 
Executive (approved) 2 45,112 – – 45,112 66.5p 5 Mar 2005-4 Mar 2012
Executive (unapproved) 2 52,632 – – 52,632 66.5p 5 Mar 2005-4 Mar 2012
Sharesave 17,757 – – 17,757 53.5p 1 Jun 2005-1 Dec 2005 
182,168 – – 182,168
Dr J F Hill
Options 4 13,856 – – 13,856 216.5p 4 Feb 2002-7 Mar 2011
Notes:
1 Share options granted prior to flotation with no performance conditions. (At this time Dr Burke, while a director, was not an employee and as a
consequence options were not granted under the rules of the Company’s share option schemes but with reference to a separate option deed all principal
terms being based on those contained within the Company’s schemes.) 
2 Share options granted subject to standard performance conditions as set out in the policy statement on share options on page 20. If the performance
condition is not achieved within the required time scale, the share options will lapse prior to the expiry date. There has been no variation in the
performance conditions. The normal exercise period shown on the above table ends with the expiry date of the options.
3 Share options granted subject to super option performance conditions as set out in the policy statement on share options on page 20. If the performance
condition is not achieved within the required time scale the share options will lapse prior to the expiry date. There has been no variation in the
performance conditions. The normal exercise period shown on the above table ends with the expiry date of the options.
4 Share options granted to non-executive director at time of initial appointment and not subject to performance conditions.
5 No variation has taken place in the terms and conditions of any share option since its grant.
6 Other than Mr Reid (as a substantial shareholder), all executive directors are entitled to participate in the Company’s Sharesave scheme.
7 The market price of the ordinary shares covered by these options as at 31 December 2003 was 56.0p. During the financial year the highest and lowest
market prices were 67.5p and 25.5p respectively. 
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Annual Report and Accounts 2003
Directors’ remuneration report continued
Individual remuneration packages for the year ended 31 December 2003
Salary Fees 2003 2002
£000 £000 £000 £000
Executive directors
M A Reid 80 – 80 79
T D Bell (appointed 15/09/03) 86 – 86 –
G S Corsi 65 – 65 63
Dr J F Burke 71 – 71 68
Non-executive directors
J C Morgan – 20 20 20
Dr J F Hill – 25 25 24
P S Jensen – 25 25 –
Aggregate remuneration 302 70 372 254
Notes:
1 The annual review of each executive director’s salary takes place on 31 March in accordance with their individual service contracts. 
2 Directors’ fees payable to non-executive directors are reviewed in each case on the anniversary of a director’s appointment.
3 Mr Bell is entitled to a salary of £160,000 p.a. In addition, Mr Bell has the opportunity to achieve an annual bonus of 50% of salary payable quarterly
against agreed targets to be established by the Remuneration Committee. In recognition that there was no bonus scheme in existence at the time of
appointment, Mr Bell will receive an additional one-off salary payment of £40,000 paid six months after the date of his engagement. 
By order of the Board
S C Hedger
Secretary
2 March 2004
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Annual Report and Accounts 2003
Independent auditors’ report 
to the members of Genetix Group plc
We have audited the financial statements of Genetix Group plc for the year ended 31 December 2003, which comprise the
consolidated profit and loss account, the consolidated and Company balance sheets, the consolidated cash flow statement, the
consolidated statement of total recognised gains and losses and the related notes 1 to 23, together with the reconciliation of
movements in consolidated shareholders’ funds. These financial statements have been prepared under the accounting policies set out
therein. We have also audited the information in the part of the directors’ remuneration report that is described as having been audited.
This report is made solely to the Company’s members, as a body, in accordance with section 235 of the Companies Act 1985. 
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them
in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we
have formed.
Respective responsibilities of directors and auditors
As described in the statement of directors’ responsibilities, the Company’s directors are responsible for the preparation of the financial
statements in accordance with applicable United Kingdom law and accounting standards. They are also responsible for the preparation
of the other information contained in the annual report including the directors’ remuneration report. Our responsibility is to audit the
financial statements and the part of the directors’ remuneration report described as having been audited in accordance with relevant
United Kingdom legal and regulatory requirements, auditing standards, and the Listing Rules of the Financial Services Authority.
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements
and the part of the directors’ remuneration report described as having been audited have been properly prepared in accordance
with the Companies Act 1985. We also report if, in our opinion, the directors’ report is not consistent with the financial
statements, if the Company has not kept proper accounting records, if we have not received all the information and explanations
we require for our audit, or if information specified by law or the Listing Rules regarding directors’ remuneration and transactions
with the Company and other members of the Group is not disclosed.
We review whether the corporate governance statement reflects the Company’s compliance with the seven provisions of the
Combined Code specified for our review by the Listing Rules of the Financial Services Authority, and we report if it does not. 
We are not required to consider whether the Board’s statements on internal control cover all risks and controls, or form an opinion
on the effectiveness of the Group’s corporate governance procedures or its risk and control procedures.
We read the directors’ report and the other information contained in the annual report for the above year as described in the
contents section including the unaudited part of the directors’ remuneration report and consider the implications for our report 
if we become aware of any apparent misstatements or material inconsistencies with the financial statements.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom auditing standards issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and the part
of the directors’ remuneration report described as having been audited. It also includes an assessment of the significant estimates
and judgements made by the directors in the preparation of the financial statements and of whether the accounting policies are
appropriate to the circumstances of the Company and the Group, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations, which we considered necessary in 
order to provide us with sufficient evidence to give reasonable assurance that the financial statements and the part of the directors’
remuneration report described as having been audited are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the
financial statements and the part of the directors’ remuneration report described as having been audited.
Opinion
In our opinion:
• The financial statements give a true and fair view of the state of affairs of the Company and the Group as at 31 December 2003
and of the profit of the Group for the year then ended; and
• The financial statements and part of the directors’ remuneration report described as having been audited have been properly
prepared in accordance with the Companies Act 1985.
Deloitte & Touche LLP
Chartered accountants and registered auditors
Southampton, 2 March 2004
Neither an audit nor a review provides assurance on the maintenance and integrity of the website, including controls used to
achieve this, and in particular whether any changes may have occurred to the financial information since first published. These
matters are the responsibility of the directors but no control procedures can provide absolute assurance in this area.
Legislation in the United Kingdom governing the preparation and dissemination of financial information differs from legislation in
other jurisdictions. Genetix Group plc 25
Annual Report and Accounts 2003
Consolidated profit and loss account
for the year ended 31 December 2003
Before Total Total 
goodwill Goodwill 2003 2002
Note £000 £000 £000 £000
Turnover – continuing operations 2 10,849 – 10,849 12,572
Cost of sales (5,720) – (5,720) (6,255)
Gross profit 5,129 – 5,129 6,317
Research & development (1,191) – (1,191) (1,448)
Sales & administrative expenses (3,915) – (3,915) (3,356)
Amortisation of goodwill – (361) (361) (362)
Total administrative expenses (5,106) (361) (5,467) (5,166)
Operating (loss)/profit – continuing operations 3 23 (361) (338) 1,151
Net interest receivable 6 759 – 759 799
Profit on ordinary activities before taxation 782 (361) 421 1,950
Tax on profit on ordinary activities 7 (67) – (67) (585)
Profit for the financial year 18 715 (361) 354 1,365
Earnings per share 9 0.99p (0.50p) 0.49p 1.76p 
Diluted earnings per share 9 0.93p (0.47p) 0.46p 1.67p
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 25 26 Genetix Group plc 
Annual Report and Accounts 2003
Consolidated and company balance sheets
at 31 December 2003
Group Group Company Company
2003 2002 2003 2002
Note £000 £000 £000 £000
Fixed assets
Intangible assets 10 6,420 6,826 – –
Tangible assets 11 2,181 2,329 – –
Investments 12 2 1 37,232 37,232
8,603 9,156 37,232 37,232
Current assets
Stocks 13 1,679 1,522 – –
Debtors 14 1,974 2,255 23 16
Cash at bank and in hand 22,094 20,867 20,052 19,315
25,747 24,644 20,075 19,331
Creditors: amounts falling due within one year 15 (3,094) (2,654) (633) (1,108)
Net current assets 22,653 21,990 19,442 18,223
Total assets less current liabilities 31,256 31,146 56,674 55,455
Provisions for liabilities and charges 16 (431) (401) – –
Net assets 30,825 30,745 56,674 55,455
Capital and reserves
Share capital 17 35,849 36,349 35,849 36,349
Share premium account 18 16,376 16,376 16,376 16,376
Capital redemption reserve 18 2,925 2,425 2,925 2,425
Merger reserve 18 (29,686) (29,686) – –
Profit and loss account 18 5,361 5,281 1,524 305
Equity shareholders’ funds 30,825 30,745 56,674 55,455
Approved by the Board on 2 March 2004
M A Reid G S Corsi
Director Director
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 26 Genetix Group plc 27
Annual Report and Accounts 2003
Consolidated cash flow statement
for the year ended 31 December 2003
2003 2002
Note £000 £000
Net cash inflow from operating activities 19a 1,083 1,234
Returns on investments and servicing of finance
Interest received 759 808
Interest paid – (9)
759 799
Taxation
Corporation tax refund 16 364
Corporation tax paid (365) (351)
(349) 13
Capital expenditure and financial investment
Purchase of tangible fixed assets (136) (289)
Purchase of intangible fixed assets (70) (61)
Sale of tangible fixed assets 7 –
(199) (350)
Net cash inflow before use of liquid resources and financing 1,294 1,696
Financing
Issue of share capital (net of expenses) – 21
Share capital re-purchased (including expenses) (241) (1,366)
Net cash outflow from financing (241) (1,345)
Increase in cash 19b,c 1,053 351
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 27 28 Genetix Group plc 
Annual Report and Accounts 2003
Consolidated statement of total recognised gains and losses
for the year ended 31 December 2003
2003 2002
£000 £000
Profit for the financial year 354 1,365
Currency translation differences on foreign currency net investments (33) (28)
Total recognised gains and losses for the year 321 1,337
Reconciliation of movements in consolidated 
shareholders’ funds
for the year ended 31 December 2003
2003 2002
£000 £000
Profit for the financial year 354 1,365
Currency translation differences (33) (28)
Share capital issued (net of costs) – 21
Share capital re-purchased (including fees) (241) (1,366)
Net movement in shareholders’ funds 80 (8)
Opening shareholders’ funds 30,745 30,753
Closing shareholders’ funds 30,825 30,745
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 28 Genetix Group plc 29
Annual Report and Accounts 2003
Notes to the accounts
for the year ended 31 December 2003
1Principal accounting policies
The financial statements have been prepared under the historical cost convention in accordance with applicable United
Kingdom accounting standards.
Basis of consolidation 
The consolidated financial statements include the accounts of the Company and all its subsidiaries.
Acquisitions
On the acquisition of a business, fair values are attributed to the Group’s share of the separable net assets. Where the cost 
of acquisition exceeds the fair values attributable to such assets, the difference is treated as purchased goodwill. The results
and cashflows relating to the acquired business are included in the consolidated profit and loss account and the consolidated
cashflow statement from the date of acquisition.
Business combinations meeting the requirements of FRS 6 ‘Mergers and Acquisitions’ and the Companies Act 1985 
are treated as mergers within the consolidated accounts. 
Intangible assets – goodwill
For acquisitions of a business following the implementation of FRS 10 ‘Goodwill and Intangible Assets’, purchased goodwill is
capitalised in the year in which it arises and amortised over its estimated useful life of 20 years. The directors regard 20 years
as a reasonable estimate for the useful life of goodwill since it is difficult to make projections exceeding this period.
Intangible assets – patents and licences
Patents and licences are valued at cost on acquisition and are depreciated in equal annual instalments over their estimated
useful lives of four to ten years.
Tangible fixed assets
Depreciation is provided in equal annual instalments in order to write off the cost of each asset over its estimated useful life 
at the following rates:
Freehold property 2% per annum
Plant and machinery 25-50% per annum
Motor vehicles 25% per annum
Office fixtures and fittings 25% per annum
Freehold land is not depreciated.
Investments
Investments held as fixed assets are stated at cost less provision for any impairment in value.
Stocks
Stocks and work-in-progress are stated at the lower of cost and net realisable value, after making allowance for obsolete and
slow moving items.
Taxation
Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using 
the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred taxation is provided in full on timing differences that result in an obligation at the balance sheet date to pay more tax,
or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law.
Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different
from those in which they are included in financial statements. Deferred tax assets and liabilities are not discounted.
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 29 30 Genetix Group plc 
Annual Report and Accounts 2003
Notes to the accounts continued
for the year ended 31 December 2003
1Principal accounting policies continued
Turnover
Turnover represents the sales value of goods and services to external customers falling within the Group’s ordinary activities.
Sales of individual instruments are accounted for as long-term contracts being recognised when the final outcome can be
assessed with reasonable certainty. Profit is recognised on long-term contracts if the final outcome can be assessed with
reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses.
Turnover is calculated by reference to the value of work performed to date as a proportion of total contract value. Sales 
of consumables are recognised on delivery of product, and service contracts evenly over the contractual period.
Turnover is stated net of trade discount and sales related taxes.
Turnover and operating result are attributable to the principal activities of the Company and Group. 
Pension costs
The Group administers a stakeholder pension scheme for its UK employees and contributes to a 401K insurance scheme 
for its US employees.
Foreign currency
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date.
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Adjustments resulting from
exchange fluctuations have been reflected in the profit and loss account.
The financial statements of foreign subsidiaries are translated into sterling at the closing rates of exchange for each period. 
The profit and loss accounts of foreign subsidiaries are translated into sterling at the average rate of exchange for each period.
The differences arising on translation are taken directly to reserves.
The Group uses derivative financial instruments solely to reduce exposure to foreign exchange risk.
Government grants
Government grants relating to tangible fixed assets are treated as deferred income and released to the profit and loss account
over the expected useful lives of the assets concerned. Other grants are credited to the profit and loss account as the related
expenditure is incurred.
Research and development
Research and development expenditure is charged to the profit and loss account as incurred.
Product warranties
Provision is made for the anticipated cost of expected claims against product warranties on products sold. 
2Turnover
In the opinion of the directors, the Group operates only one class of business, namely the provision of instrumentation,
consumables and services for genomic and proteomic research. Turnover can be analysed as follows:
2003 2002
£000 £000
By geographic destination
UK 1,444 1,487
Rest of Europe 2,620 2,402
North America 5,543 6,565
Rest of World 1,242 2,118
10,849 12,572
The majority of turnover was generated in the United Kingdom with the exception of Genetix USA Inc., segmental disclosure 
of which would be prejudicial to the business in the United States.
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 30 Genetix Group plc 31
Annual Report and Accounts 2003
Notes to the accounts continued
for the year ended 31 December 2003
3 Operating (loss)/profit
2003 2002
£000 £000
Operating (loss)/profit is stated after charging/(crediting):
Depreciation of owned assets 279 304
Amortisation of goodwill 361 362
Amortisation of patents and licences 115 63
(Profit)/loss on disposal of fixed assets (7) 2
Auditors’ remuneration:
Audit services
Statutory audit 29 27
Audit-related regulatory reporting 10 9
Tax services
Compliance services 9 8
Advisory services 27 55
Research and development (including salaries) 1,416 1,561
Grant recoveries (225) (113)
Exchange gain on foreign currency transactions (174) (374)
Auditors’ remuneration paid by the Company in respect of services as auditors was £19,000 (2002: £18,000).
4 Employee costs and numbers
Group Group
2003 2002
£000 £000
Costs (including directors)
Wages and salaries 3,349 3,157
Social security costs 349 303
Pension costs 41 27
3,739 3,487
2003 2002
No. No.
Average number employed
Sales and marketing 27 23
Research and development 24 28
Production and technical support 27 32
Administration 16 16
Laboratory 6 8
100 107
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 31 5 Directors’ remuneration
The tables relating to directors’ remuneration and share options are included in the audited part of the directors’ remuneration
report on pages 22 and 23.
6 Net interest receivable
2003 2002
£000 £000
Interest receivable 759 808
Interest payable
Other – (9)
759 799
7Tax on profit on ordinary activities
2003 2002
£000 £000
Current tax
UK corporation tax 90 502
Adjustments in respect of prior years (57) (252)
33 250
Foreign tax 18 44
Total current tax 51 294
Deferred tax
Origination and reversal of timing differences (note 16) 4 (8)
Adjustments in respect of prior years 12 299
Total deferred tax 16 291
Total tax on profit on ordinary activities 67 585
The tax assessed for the year is lower than that resulting from applying the standard rate of corporation tax in the UK of 30%
(2002: 30%). The differences are explained below:
2003 2002
% %
Standard tax rate for year as a percentage of profits 30 30
Effects of:
Expenses not deductible for tax purposes 27 7
Capital allowances in excess of depreciation (1) 1
Movement in short term timing differences – (1)
Other (2) –
Research and development tax credits (28) (9)
Prior period adjustments (14) (13)
Current tax rate for year as a percentage of profits 12 15
8Profit for year attributable to Genetix Group plc
As permitted by section 230 of the Companies Act 1985, the profit and loss of the parent Company is not individually
presented as part of these accounts. The parent Company's profit for the year ended 31 December 2003 was £1,460,000
(2002: £2,063,000).
32 Genetix Group plc 
Annual Report and Accounts 2003
Notes to the accounts continued
for the year ended 31 December 2003
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 32 9 Earnings per share
2003 2002
£000 £000
Profit for the financial year before amortisation of goodwill 715 1,727
Amortisation of goodwill (361) (362)
Profit for the financial year 354 1,365
No. 000 No. 000
Basic weighted average number of shares 72,077 77,446
Dilutive effect of share options 5,272 4,213
Diluted weighted average number of shares 77,349 81,659
Pence Pence
Earnings per share before amortisation of goodwill 0.99p 2.23p
Diluted earnings per share before amortisation of goodwill 0.93p 2.11p
Earnings per share 0.49p 1.76p
Diluted earnings per share 0.46p 1.67p
Earnings are calculated as profit after taxation for the year. Earnings per share before amortisation of goodwill has been shown
because the directors consider that this gives a useful indication of underlying performance.
10 Intangible fixed assets
Patents
Goodwill & licences Total
Group £000 £000 £000
Cost
At 1 January 2003 7,231 489 7,720
Additions –70 70
At 31 December 2003 7,231 559 7,790
Amortisation
At 1 January 2003 813 81 894
Charge for the year 361 115 476
At 31 December 2003 1,174 196 1,370
Net book value
At 31 December 2003 6,057 363 6,420
At 31 December 2002 6,418 408 6,826
Genetix Group plc 33
Annual Report and Accounts 2003
Notes to the accounts continued
for the year ended 31 December 2003
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 33 34 Genetix Group plc 
Annual Report and Accounts 2003
Notes to the accounts continued
for the year ended 31 December 2003
11 Tangible fixed assets
Freehold land Plant & Motor Office fixtures
& buildings machinery vehicles & fittings Total
Group £000 £000 £000 £000 £000
Cost
At 1 January 2003 2,025 680 98 241 3,044
Additions – 110 – 26 136
Disposals – (2) (16) – (18)
Exchange adjustment – – – (6) (6)
At 31 December 2003 2,025 788 82 261 3,156
Depreciation
At 1 January 2003 100 414 42 159 715
Charge for the year 41 174 20 44 279
Disposals – (2) (16) – (18)
Exchange adjustment – 1 – (2) (1)
At 31 December 2003 141 587 46 201 975
Net book value
At 31 December 2003 1,884 201 36 60 2,181
At 31 December 2002 1,925 266 56 82 2,329
12 Investments
Group Group Company Company
2003 2002 2003 2002
£000 £000 £000 £000
Cost and net book value
Listed investments 2 1 – –
Investment in subsidiary undertakings – – 37,232 37,232
At 31 December 2003 2 1 37,232 37,232
Details of the subsidiary companies are as follows:
Percentage of 
Subsidiary undertaking Country of incorporation Principal activity equity shares held
Genetix Limited United Kingdom Manufacture and sale of robotics and consumable products 100%
Genescreen Limited United Kingdom Provision of biological services 100%
Genpak Limited United Kingdom Dormant 100%
Genetix USA Inc. USA Manufacture and sale of reagents; marketing company for 
Genetix Limited products for North America 100%
Genetix GmbH Germany Marketing company for Germany, Austria and Switzerland 100%
13 Stocks
Group Group
2003 2002
£000 £000
Raw materials 978 921
Work in progress 93 15
Finished goods 608 586
1,679 1,522
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 34 Genetix Group plc 35
Annual Report and Accounts 2003
Notes to the accounts continued
for the year ended 31 December 2003
14 Debtors
Group Group Company Company
2003 2002 2003 2002
£000 £000 £000 £000
Trade debtors 1,641 1,949 – –
Other debtors 216 184 – –
Prepayments 117 122 23 16
1,974 2,255 23 16
15 Creditors: amounts falling due within one year
Group Group Company Company
2003 2002 2003 2002
£000 £000 £000 £000
Trade creditors 1,116 770 – –
Amounts owed to related undertakings (note 21) – 100 – –
Amounts owed to subsidiary undertakings (note 21) – – 478 908
Taxation and social security 101 79 – –
Other creditors 476 120 – –
Corporation tax 469 767 34 80
Accruals and deferred income 932 818 121 120
3,094 2,654 633 1,108
16 Provisions for liabilities and charges
Product Deferred Group
warranties taxation 2003
£000 £000 £000
At 1 January 2003 110 291 401
Utilised during year (76) – (76)
Profit and loss charge 90 16 106
At 31 December 2003 124 307 431
Product warranties
A provision has been recognised for expected claims against product warranties on products sold during the year. It is expected
that most of this expenditure will be incurred in the next financial year. 
Deferred taxation 
Deferred taxation has been provided in the financial statements as follows:
Group Group Company Company
2003 2002 2003 2002
£000 £000 £000 £000
Accelerated capital allowances 340 326 – –
Other timing differences (33) (35) – –
307 291 – –
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 35 17 Share capital
In May 2003, a total of 1,000,000 ordinary shares of 50p (nominal value £500,000) were purchased on the market
at a price of 24p, costing a total of £240,000 plus expenses of £1,200. These shares have been cancelled and the value
shown in the capital redemption reserve (note 18). 
2003 2002
£000 £000
Authorised share capital:
130,000,000 ordinary shares of 50p each 65,000 65,000
Issued share capital:
71,698,688 (2002: 72,698,688) ordinary shares of 50p each 35,849 36,349
Under the Company’s Executive Approved and Unapproved 2000 Share Option Schemes, directors and employees held
options at 31 December 2003 for 5,177,695 (2002: 3,299,103) unissued ordinary shares as follows:
At 1 Jan At 31 Dec Excercise
Scheme 2003 GrantedExercised Lapsed 2003 Price Normal exercise period
Approved 496,664 – – (92,666) 403,998 150p 24 Nov 2003-23 Nov 2010
Approved 77,307 – – (21,944) 55,363 158.5p 1 Aug 2004-31 Jul 2011
Approved 36,585 – – – 36,585 82p 26 Oct 2004-25 Oct 2011
Approved 381,653 – – (121,052) 260,601 66.5p 5 Mar 2005-4 Mar 2012
Approved 204,684 – – (96,250) 108,434 50p 30 Jul 2005-29 Jul 2012
Approved – 169,600 – (4,000) 165,600 50p 5 Mar 2006-4 Mar 2013
Approved – 10,000 – – 10,000 50p 30 Jul 2006-29 Jul 2013
Approved – 58,252 – – 58,252 51.5p 15 Sep 2006-14 Sep 2013
Unapproved 673,336 – – (80,000) 593,336 150p 24 Nov 2003-23 Nov 2010
Unapproved 19,716 – – – 19,716 158.5p 1 Aug 2004-31 Jul 2011
Unapproved 85,366 – – – 85,366 82p 26 Oct 2004-25 Oct 2011
Unapproved 1,093,792 – – (36,843) 1,056,949 66.5p 5 Mar 2005-4 Mar 2012
Unapproved 60,000 – – – 60,000 50p 30 Jul 2005-29 Jul 2012
Unapproved 170,000 – – (80,000) 90,000 50p 9 Sep 2005-8 Sep 2012
Unapproved – 145,000 – (20,000) 125,000 50p 5 Mar 2006-4 Mar 2013
Unapproved – 165,000 – – 165,000 50p 30 Jul 2006-29 Jul 2013
Unapproved – 640,777 – – 640,777 51.5p 15 Sep 2006-14 Sep 2013
Unapproved
1
– 1,242,718 – – 1,242,718 51.5p 15 Sep 2008-14 Sep 2013
3,299,103 2,431,347 – (552,755) 5,177,695
Note: 
1 Super Options granted to Trevor Bell, Chief Operating Officer, subject to more stringent performance criteria (see Remuneration Report page 20).
36 Genetix Group plc 
Annual Report and Accounts 2003
Notes to the accounts continued
for the year ended 31 December 2003
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 36 17 Share capital continued
Under the Company’s Approved Sharesave Scheme, directors and employees held options at 31 December 2003 for 340,215
(2002: 398,828) unissued ordinary shares as follows:
At 1 Jan At 31 Dec Exercise 
Scheme 2003 Granted Exercised Lapsed 2003 Price Normal exercise period
Sharesave 16,465 – – (5,165) 11,300 120p 1 Feb 2004-1 Aug 2004
Sharesave 3,375 – – (2,250) 1,125 120p 1 Feb 2006-1 Aug 2006
Sharesave 3,051 – – (3,051) – 127p 1 Nov 2004-1 May 2005
Sharesave 3,401 – – (3,401) – 127p 1 Nov 2006-1 May 2007
Sharesave 310,668 – – (44,746) 265,922 53.5p 1 Jun 2005-1 Dec 2005
Sharesave 61,868 – – – 61,868 53.5p 1 Jun 2007-1 Dec 2007
398,828 – – (58,613) 340,215
Under other option agreements, certain directors and employees held options at 31 December 2003 for 967,047 (2002:
980,903) unissued ordinary shares as follows:
At 1 Jan At 31 Dec Exercise 
Date of grant 2003 Granted Exercised Lapsed 2003 Price Normal exercise period
4 Oct 2000 886,524 – – – 886,524 67.68p 29 Nov 2000-3 Oct 2010
11 Nov 2000 66,667 – – – 66,667 150p 11 Nov 2003-10 Nov 2010
8 Mar 2001 27,712 – – (13,856) 13,856 216.5p 4 Feb 2002-7 Mar 2011
980,903 – – (13,856) 967,047
The share price at 31 December 2003 was 56.0p. The range during the year was 25.5p – 67.5p.
18 Reserves
Share Capital Profit
premium redemption Merger & loss
account reserve reserve account Total
Group £000 £000 £000 £000 £000
At 1 January 2003 16,376 2,425 (29,686) 5,281 (5,604)
Retained profit for the financial year – – – 354 354
Cancellation of shares (note 17) – 500 – (240) 260
Cancellation expenses (note 17) – – – (1) (1)
Currency translation differences – – – (33) (33)
At 31 December 2003 16,376 2,925 (29,686) 5,361 (5,024)
Share Capital Profit
premium redemption Merger & loss
account reserve reserve account Total
Company £000 £000 £000 £000 £000
At 1 January 2003 16,376 2,425 – 305 19,106
Retained profit for the financial year – – – 1,460 1,460
Cancellation of shares (note 17) – 500 – (240) 260
Cancellation expenses (note 17) – – – (1) (1)
At 31 December 2003 16,376 2,925 – 1,524 20,825
Genetix Group plc 37
Annual Report and Accounts 2003
Notes to the accounts continued
for the year ended 31 December 2003
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 37 38 Genetix Group plc 
Annual Report and Accounts 2003
Notes to the accounts continued
for the year ended 31 December 2003
19 Notes to the cash flow statement
(a) Reconciliation of operating (loss)/profit to net cash inflow from operating activities
Group Group
2003 2002
£000 £000
Operating (loss)/profit (338) 1,151
Depreciation 279 304
Amortisation 476 425
(Profit)/loss on sale of fixed assets (7) 2
(Increase)/decrease in stocks (157) 255
Decrease/(increase) in debtors 281 (479)
Increase/(decrease) in creditors 723 (50)
Exchange gain on foreign currency transactions (174) (374)
Net cash inflow from operating activities 1,083 1,234
(b) Analysis of changes in net funds
At At 
1 January Cash Exchange 31 December
2003 flow movement 2003
£000 £000 £000 £000
Cash at bank and in hand 20,867 1,053 174 22,094
20,867 1,053 174 22,094
(c) Reconciliation of net cash flow to movement in net funds
Group Group
2003 2002
£000 £000
Increase in cash in the year 1,053 351
Change in net funds resulting from cash flows 1,053 351
Translation difference 174 374
Movement in net funds in the year 1,227 725
Net funds at 1 January 2003 20,867 20,142
Net funds at 31 December 2003 22,094 20,867
20 Capital commitments
There were no capital commitments as at 31 December 2003 or 31 December 2002.
21 Related party transactions
From the beginning of the year to 3 July 2003, intercompany trading on normal commercial terms between Genetix Limited
and Unimark Plastics Limited (formerly Plastic Injection Limited), a company owned 50% by M A Reid and 25% by J C
Morgan, directors, amounted to purchases of £268,080 (2002: £563,016). On 3 July 2003, Mr Reid and Mr Morgan 
sold their shareholding in Plastic Injection Limited to a third party. 
In accordance with the exemptions from disclosure under Financial Reporting Standard 8, transactions and balances with
Group companies are not disclosed.
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 38 22 Derivatives and other financial instruments
The Group’s financial instruments comprise cash, forward foreign exchange contracts and various non-derivative financial
instruments such as trade debtors and trade creditors. As permitted by Financial Reporting Standard No. 13 ‘Derivatives 
and other financial instruments: Disclosures’ (‘FRS13’), short-term debtors and creditors have been excluded from all 
FRS13 disclosures.
The main risks arising from financial instruments of the Group are interest risk, foreign exchange risk and liquidity risk. 
The Group’s policies in respect of the management of these risks are as follows:
Interest risk
The Group finances its operations through a mixture of retained earnings, cash balances and receipts from share issues. 
The majority of the Group’s cash is invested with the Bank of Scotland currently earning interest at UK Base Rate plus 0.1%. 
Foreign exchange risk
The Group does not engage in speculative transactions and its policy is to minimise its exposure to exchange rate fluctuations
by using forward contracts. Exchange exposure is reviewed on at least a quarterly basis and cover taken based on expected
net cash flows within the next 12 months. The Group translates overseas profits and net assets in accordance with the
accounting policy in note 1. Translation differences are dealt with through the Group’s statement of total recognised gains 
and losses. At 31 December 2003, the Group was committed to forward exchange contracts totalling US $3,000,000 at an
average rate of £/$ 1.5960 and Euro 1,250,000 at an average rate of £/€ 1.4128, all maturing before 31 December 2004,
with an unrecognised gain of £207,789 (2002: £205,858 gain, recognised in 2003). Since the year end, the Group
committed to further forward exchange contracts totalling US $3,000,000 at an average rate of £/$ 1.7638.
Liquidity risk
None
The interest rate risk profile of the Group’s financial assets and liabilities is as follows:
Total Total
Sterling US $ Euro 2003 Sterling US $ Euro 2002
Financial assets £000 £000 £000 £000 £000 £000 £000 £000
Fixed rate – – – – 19,185 – – 19,185
Floating rate 20,616 173 20 20,809 1,150 427 45 1,622
Non-interest bearing 73 1,081 131 1,285 555 – 60
20,689 1,254 151 22,094 20,340 482 45 20,867
Disclosed as:
Cash at bank and in hand 22,094 20,867
Weighted average interest rate 3.75% 0.22% 0.06% 3.40% 3.93% 0.82% 2.28% 3.86%
There were no financial liabilities as at 31 December 2003 or 31 December 2002.
The main functional currencies of the Group are sterling, the US dollar and the euro. Currency exposures comprise the cash
balances of the Group that are not denominated in the functional currency of the operating unit involved, after the effects 
of forward contracts. As at 31 December 2003, these exposures were as follows:
Genetix Group plc 39
Annual Report and Accounts 2003
Notes to the accounts continued
for the year ended 31 December 2003
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 39 40 Genetix Group plc 
Annual Report and Accounts 2003
Notes to the accounts continued
for the year ended 31 December 2003
22 Derivatives and other financial instruments continued
Total Total
Sterling US $ Euro 2003 Sterling US $ Euro 2002
Currency profile £000 £000 £000 £000 £000 £000 £000 £000
Functional currencies:
Sterling – – – – –– 45 45
US $ – – – – ––––
Euro – – – – ––––
–––– –– 45 45
In the opinion of the Board, the fair value of the Group’s financial assets is equal to the book value. Interest on floating rate
assets and liabilities is based upon the relevant national inter bank rates.
23 Ultimate controlling party
M A Reid, director and chief executive, is the ultimate controlling party of the Company.
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 40 Genetix Group plc 41
Annual Report and Accounts 2003
Notice of Annual General Meeting
Notice is hereby given that the fourth Annual General Meeting of the Company will be held at the offices of Financial Dynamics,
Holborn Gate, 26 Southampton Buildings, London WC2A 1PB at 11.30am on Friday 30 April 2004 for the transaction of the
following business:
Ordinary business
1To receive and adopt the accounts, the directors’ report, and the auditors’ report for the year ended 31 December 2003.
2To approve the directors’ remuneration report for the year ended 31 December 2003. 
3To re-appoint Dr J F Hill as a director of the Company, retiring in accordance with the Company’s Articles of Association.
4To re-appoint Mr M A Reid as a director of the Company, retiring in accordance with the Company’s Articles of Association.
5To elect Mr T D Bell as a director of the Company in accordance with the Company’s Articles of Association.
6To re-appoint Deloitte & Touche LLP as auditors and authorise the directors to determine their remuneration.
Special business
To consider and, if thought fit, pass resolutions 7 and 8 as ordinary resolutions and resolutions 9 and 10 as special resolutions.
7 That the amendments to the Genetix Group plc Approved 2000 Share Option Scheme, the Genetix Group plc Unapproved
2000 Share Option Scheme and the Genetix Group plc Sharesave Scheme (2000), which are summarised in the Remuneration
Report dated 2 March 2004 and are now produced to the meeting be hereby approved and adopted and that the directors 
be hereby authorised to take all steps, which they consider necessary or expedient to establish and carry the amendments 
into effect. 
8 That the Board be and it is hereby generally and unconditionally authorised to exercise all powers of the Company to allot
relevant securities (within the meaning of Section 80 of the Companies Act 1985) up to an aggregate nominal amount of
£15,192,259 provided that this authority is in substitution for any existing authorities conferred on the directors pursuant 
to section 80 of the said Act and (unless previously revoked or varied by the Company in general meeting) shall expire at 
the conclusion of the next Annual General Meeting of the Company 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 Board may 
allot relevant securities in pursuance of such an offer or agreement as if the authority conferred hereby had not expired.
9 That subject to the passing of the previous resolution the Board be and it is hereby empowered pursuant to Section 95 of 
the Companies Act 1985 to allot equity securities (within the meaning of Section 94 of the said Act) for cash, either pursuant
to the authority conferred by the previous resolution or by an allotment of equity securities such as is referred to in section 94
(3A) of the Act, as if sub-section (1) of Section 89 of the said Act did not apply to any such allotment provided that this power
shall be in addition to any existing powers conferred on the directors pursuant to section 95 of the said Act and shall be
limited to:
(i) the allotment of equity securities in connection with a rights issue or open offer or otherwise in favour of ordinary shareholders
where the equity securities respectively attributable to the interests of all ordinary shareholders are proportionate (as nearly
as may be) to the respective numbers of ordinary shares held by them subject to such exclusions as the directors may
deem fit to deal with fractional entitlements or with legal or practical problems arising in any overseas territory or with the
requirements of any regulatory body or stock exchange; and
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 41 42 Genetix Group plc 
Annual Report and Accounts 2003
Notice of Annual General Meeting continued
9 (ii) the allotment (otherwise than pursuant to sub-paragraph 9(i) above) of equity securities up to an aggregate nominal value
of £1,792,467
and shall expire at the conclusion of the next Annual General Meeting of the Company after the passing of this resolution save
that the Company may before such expiry make an offer or agreement, which would or might require equity securities to be
allotted after such expiry and the Board may allot equity securities in pursuance of such an offer or agreement as if the power
conferred hereby had not expired.
10 That the Company be and is hereby unconditionally and generally authorised in accordance with section 166 of the Companies
Act 1985 (the ‘Act’) to make market purchases (as defined in Section 163 of the Act) of a maximum of 2,000,000 ordinary
shares of 50p each in the capital of the Company on such terms and in such manner as the directors may, from time to time,
determine provided that:
(i) the minimum price, which may be paid for each share is 1p;
(ii) the maximum price, which may be paid for each share is an amount equal to 105 per cent. of the average of the middle
market quotations for an ordinary share of the Company as derived from the London Stock Exchange Daily Official List for
the five business days immediately preceding the day on which such share is contracted to be purchased; and
(iii) this authority shall expire at the conclusion of the next Annual General Meeting of the Company or if earlier on 30 September
2005 unless such authority is renewed prior to such time, provided that the Company may make a contract to purchase
ordinary shares under the authority conferred prior to the expiry of such authority, which will or may be executed wholly 
or partly after the expiry of such authority and may make a purchase of ordinary shares pursuant to any such contract 
as if such authority had not expired. 
By order of the Board
S C Hedger
Secretary
22 March 2004
Registered office:
Queensway, New Milton, Hampshire, BH25 5NN
Registered in England and Wales
Registered Number 4024856
Notes to the notice of the Annual General Meeting
1A member entitled to attend and vote at the meeting is also entitled to appoint one or more proxies to attend and, on a poll, vote instead of him. The proxy need 
not be a member of the Company. 
2A form of proxy is enclosed with this notice. To be effective, the instrument appointing a proxy (together with any power of attorney or other authority under which 
it is executed or a duly certified copy of such power) must be sent to the Company’s registrars, Lloyds TSB Registrars, The Causeway, Goring-by-sea, Worthing, 
West Sussex, BN99 6ZL, not less than 48 hours before the time for holding the meeting or adjourned meeting as the case may be. A corporation may execute a
proxy under its common seal or by the hand of a duly authorised officer or other agent. Completion and return of the form of proxy will not preclude shareholders
from attending and voting in person at the meeting.
3 In accordance with Regulation 41 of the Uncertificated Securities Regulations 2001, only those members entered on the register of members of the Company as 
at 6.00pm on 28 April 2004 shall be entitled to attend or vote at the meeting in respect of the number of shares registered in their name at that time. Changes to
entries on the register of members after 6.00pm on 28 April 2004 shall be disregarded in determining the rights of any person to attend or vote at the meeting.
4 The register of directors’ shareholdings and transactions will be available for reference at the commencement and remain open until the conclusion of the Annual
General Meeting.
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 42 Genetix Group plc 43
Annual Report and Accounts 2003
Notice of Annual General Meeting continued
Explanatory notes
Directors’ remuneration report – resolution 2
The Directors’ Remuneration Report Regulations 2002 (“the Regulations”) came into force on 1 August 2002 and it is a requirement of the Regulations that all quoted
companies produce a board-approved report on directors’ remuneration for financial years ending on or after 31 December 2002. This report is set out on pages 18 
to 23 of the annual report and accounts. It is a further requirement of the Regulations that at the general meeting of the company before which the company’s annual
accounts for the financial year are laid, an ordinary resolution be put to shareholders seeking approval for the remuneration report. 
Amendment to employee share schemes – resolution 7
The Company proposes to increase the aggregate number of shares that can be subject to options under the Company's employee share schemes from 10% to 13% 
of the share capital of the Company in issue at the time of grant. Of this 13%, a limit of 9.4% will apply to the aggregate number of options granted under the Company's
discretionary schemes. The Company currently operates two discretionary schemes, the Genetix Group plc Approved and Unapproved 2000 Share Option Schemes. 
The remaining headroom will be available for use under the Company's all-employee share schemes. The Company currently operates one all-employee share scheme,
the Genetix Group plc Sharesave Scheme (2000). 
Rule 7.1 of the Sharesave Scheme and Rule 3.1 of both the Approved and the Unapproved Schemes, which currently specify an aggregate 10% limit, will be amended
accordingly. 
The Company also proposes to remove the current distinction between the limit that applies to “basic options” and that which applies to “super options”(which have 
an extended 5 year vesting period and incorporate a more demanding performance target) under the two discretionary schemes. Therefore, the new 9.4% limit will 
apply to all discretionary options whether basic or super. Rule 3.2 of both the Approved and Unapproved Schemes will be amended accordingly.
The full text of the schemes as amended will be available for inspection at the offices of Olswang, 90 High Holborn, London WC1V 6XX and at the offices of Financial
Dynamics, Holborn Gate, 26 Southampton Buildings, London WC2A 1PB for at least 15 minutes prior to and during the Annual General Meeting. 
Authority to allot shares – resolution 8
This resolution set out in the notice of the Annual General Meeting will be proposed to give the directors a new and unconditional authority, for the purposes of Section
80 of the Act, to allot relevant securities up to an aggregate nominal amount of £15,192,259. This amount is the maximum authority recommended by the ABI
guidelines and approximates to one-third of the existing issued ordinary share capital of the Company, together with the relevant securities which may be issued pursuant
to outstanding options. There is no present intention of exercising this authority.
Disapplication of pre-emption rights – resolution 9
Section 89 of the Act grants existing members pre-emption rights i.e. it provides that on the allotment of new shares for cash they must first be offered to existing
members in proportion to the number of shares already held by such members. The directors believe that it is in the best interests of the Company that the Board should
have limited power to allot part of the Company’s authorised but unissued equity share capital or to transfer shares out of treasury for cash without first having to offer
such shares to existing shareholders. There is no present intention of using these powers. The power if granted will relate to allotments of equity securities having an
aggregate nominal value not exceeding £1,792,467, being approximately 5 per cent of the existing issued ordinary share capital of the Company.
General authority to buy back shares – resolution 10
The directors of Genetix seek authority to purchase up to 2,000,000 ordinary shares (representing approximately 2.8 per cent of the current issued ordinary share 
capital of the Company). The maximum price per share which may be paid on any exercise of this authority will not exceed 105 per cent of the average of the middle
market quotations for an ordinary share of the Company for the five business days immediately preceding the date on which such share is contracted to be purchased.
The minimum price will be 1p per ordinary share. This authority is a renewal of the authority previously granted on 25 April 2003.
The directors do not intend to exercise the Company’s power to purchase its own shares other than in circumstances where, in the light of market conditions prevailing 
at the time, they consider this to be in the shareholders’ best interests and where this would result in an increase in earnings per share. In exercising the authority to
purchase ordinary shares, the directors may treat the shares that have been bought back as either cancelled (thereby reducing the number of shares in issue accordingly)
or held in treasury (or a combination of both) and, to the extent that any such shares are held in treasury, earnings per share will only be increased on a temporary 
basis until such time as the shares are re-sold out of treasury. In deciding whether or not to exercise this authority, the directors will continue to take into account other
investment opportunities including acquisitions. The Company would use its distributable reserves to effect the purchase of the ordinary shares. The authority, if granted,
will expire on the earlier of the conclusion of the next Annual General Meeting or 30 September 2005.
On 19 March 2004, being the latest practicable date prior to the publication of this document, there were options outstanding over 7,002,513 ordinary shares, such
options having been granted under the rules of the Genetix Executive and Sharesave Options Schemes or otherwise. In total these represent approximately 9.8 per cent 
of the Company’s issued share capital as at 19 March 2004 and would represent approximately 10 per cent of the adjusted issued share capital if the full proposed
authority to buy back shares was used (and assuming that all such shares bought back by the Company were cancelled rather than held in treasury).
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 43 44 Genetix Group plc 
Annual Report and Accounts 2003
Five year summary
2003 2002 2001 2000 1999
£000 £000 £000 £000 £000
Profit & loss
Turnover 10,849 12,572 12,419 10,730 7,334
Operating profit
*
23 1,513 1,605 3,502 3,145
Exceptional items – – – (676) –
Goodwill (361) (362) (362) (88) (1)
Net interest receivable 759 799 990 132 58
Profit before tax 421 1,950 2,233 2,870 3,202
Taxation (67) (585) (752) (967) (1,013)
Profit after tax 354 1,365 1,481 1,903 2,189
Minority interest – ––– 2
Profit for financial year 354 1,365 1,481 1,903 2,191
Dividends – –– (2,150) (300)
Retained profit/(loss) 354 1,365 1,481 (247) 1,891
Operating margin
*
0.2% 12% 13% 33% 43%
Adjusted earnings per share
*
0.99p 2.23p 2.38p 4.17p 3.71p
Balance sheet
Fixed assets 8,603 9,156 9,541 10,130 975
Working capital 1,028 1,890 1,688 2,072 856
Net cash 22,094 20,867 20,142 18,106 3,100
Taxation (776) (1,058) (460) (810) (783)
Other (124) (110) (158) (233) (70)
Net assets 30,825 30,745 30,753 29,265 4,078
Cash flow
Cash from operations 1,083 1,234 2,136 1,636 2,594
Net interest 759 799 990 132 58
Tax (paid)/rebate (349) 13 (1,102) (1,139) (855)
Capital expenditure (206) (350) (758) (2,140) (75)
Acquisitions and disposals 7 – 827 (882) –
Equity dividends paid – –– (2,150) (300)
Cash flow before financing 1,294 1,696 2,093 (4,543) 1,422
Issue of shares – 21 4 19,299 –
Re-purchase of shares (241) (1,366) – – –
(Decrease)/increase in debt – – (1,699) 1,354 (22)
Increase in cash 1,053 351 398 16,110 1,400
* before exceptional items and goodwill
H1060_Genetix_Back  12 3 2004  8:24 pm  Page 44 Contents
01 Highlights
02 Chairman’s statement
03 Key events of 2003
04 Focus on Strategic Business Units
06 Chief executive’s review
09 Financial review
10 Directors and company secretary
11 Scientific Advisory Board and Advisers
12 Directors’ report
18 Directors’ remuneration report
24 Independent auditors’ report
25 Consolidated profit and loss account
26 Consolidated and company balance sheets
27 Consolidated cash flow statement
28 Consolidated statement of total recognised gains and losses
28 Reconciliation of movements in consolidated shareholders’ funds
29 Notes to the accounts
41 Notice of Annual General Meeting
44 Five year summary
Genetix is a leading developer of automated solutions for the understanding
of systems biology.
We aim to:
 provide cutting edge tools for molecular biology, including genomics,
proteomics, cell biology and high-throughput screening;
 build close links with leading scientific groups around the world;
 create cost effective solutions based on our innovative technologies.
H1060_Genetix_Cover  12 3 2004  8:27 pm  Page 2 Genetix Group plc
Annual Report and Accounts 
for the year ending 31 December 2003
Genetix Group plc Annual Report and Accounts 2003
Genetix Group plc
Queensway
New Milton
Hampshire
BH25 5NN
United Kingdom
Tel +44 (0)1425 624600
Fax +44 (0)1425 624700
www.genetix.com
H1060_Genetix_Cover  12 3 2004  8:27 pm  Page 1