Pochin’s PLC
Annual Report & Accounts 2008 Headlines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Chairman’s Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Chief Executive’s Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Financial Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Corporate Social Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Directors’ Remuneration Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Directors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Consolidated Income Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Statements of Recognised Income and Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Consolidated Balance Sheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Company Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Consolidated Cash Flow Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Company Cash Flow Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Report of the Independent Auditors to the members of Pochin’s PLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Five Year Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Shareholder Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Contents
Easter Park, Shell Green, Widnes Page 1
Headlines
Financial summary
for continuing operations Proforma Proforma
2008 2007
£m £m
Company and subsidiary profits 4.1 9.7
Investment impairments (4.6) (1.5)
Reorganisation costs (0.8) –
(Loss)/profit from company and subsidiaries before tax - IFRS operating (loss)/profit (1.4) 8.2
Joint venture and associates operating profits 5.9 0.2
Provisions against future losses (3.1) –
Profit from joint ventures and associates before tax 2.8 0.2
Net finance 0.9 0.6
Profit before tax for the group 2.3 9.0
Tax on joint ventures and associates (0.5) 0.1
IFRS profit before tax 1.8 9.1
Taxation on company and subsidiaries 0.9 (2.3)
Profit after tax for the group 2.6 6.8
Net assets 53.1 51.5
Pence Pence
Earnings per share (diluted) 12.7 33.2
Dividend per share 6.0 9.25
The profit from joint ventures and associates before tax of £2.8m is reconciled to the face of the income statement (£2.3m) by adding back the tax credit in joint
ventures and associates (£0.5m).
• Turnover maintained at £115m
• Profits £2.3m after provisions of £7.7m against
investments
• Property profits of £2.0m after provisions
• Joint venture contribution at £2.8m
• Contracting profits at £0.8m before reorganisation costs
• Forward orders for Contracting of £55m
• Construction Services result maintained at £0.3m
• Residential developer losses increased by write downs of
land values
• Group banking facilities increased to provide liquidity
Headlines Page 2
Chairman’s Statement
Chairman Richard Fildes
The results for the group for the year ending 31 May 2008
reflect the difficult conditions prevailing in the UK property
market. Profits before tax on group companies, joint ventures
and associate company income were £2.3m (2007: £8.9m),
derived from turnover of £115.3m (2007: £116.6m). After
accounting for taxation charges in joint ventures of £0.5m, the
reported IFRS group profit before taxation is £1.8m 
(2007: £9.1m).
A final dividend of 3.0p is proposed which, combined with the
interim dividend of 3.0p (2007: 3.0p), will total 6.0p 
(2007: 9.25p) for the full year. The board regrets the need to
propose a reduced final dividend which it feels is appropriate
in the current general and specific economic circumstances. 
“Dramatic recent events in financial markets make
commenting on the group’s current prospects unusually
perilous”. This concern, expressed in last year’s Chairman’s
Statement, unfortunately has proved to be fully justified by the
wholesale reassessment of property values and prospects
which have occurred since last year’s annual report. 
This has been brought about by the abrupt change in both
the cost and availability of money. For many years, readily
available funding for property development and investment
has stimulated demand. Prices responded with investment
yields falling to well below the cost of money, encouraged by
the prospect of even higher prices. Money is the raw material
of the property industry and when its supply is savagely
curtailed, as is evident from the changed conditions in the
credit markets, demand from investors evaporates. Prices
begin to fall and confidence is destroyed. 
Thus we have seen in the last twelve months a substantial 
re-rating of the value of both commercial and residential
property. Such a marked adjustment naturally affects not only
the price of built stock but also development appraisal and
land values. To date stability has not yet returned with
investment yields still drifting outwards and the viability of all
forms of development remaining difficult to assess. 
In these troubled circumstances, Pochin’s has performed
creditably during the year. The Property division has again
New Craft Centre, Ruthin
  Page 3
Chairman’s Statement
made the main contribution before making necessary
provisions in the prevailing market conditions. The profitable
disposal of land for a supermarket at Ellesmere, Shropshire,
was a highlight, as was the exchange of contracts for the
£12m sale by Manchester Technopark Limited, our joint
venture with Manchester Science Park Limited, of Reynolds
House. Fortunately, the division’s investment portfolio is well
let with its £3.8m annual rental income so far proving resilient.
A reorganisation of the Contracting division was carried out
during the year. Taking the cost of this into account, its
performance was acceptable. Turnover was maintained, and
the re-invigorated management team is now winning valuable
new business despite the increasingly competitive
environment for contracting.
During the second half of the year the Construction Services
division was affected by weakening demand and sharply
increasing fuel prices. Since the year end there has been no
improvement in turnover with business in the Midlands and
the North showing the greatest decline. Steadier fuel prices
and sustained public sector activity are helping to alleviate this
situation.
The Residential division had an extremely difficult year, and it
is not possible to report any improvement since the year end.
Fortunately the modest size of the operation, and a realistic
approach to speculative building, will mean that the
continuing losses of the division are containable. 
Naturally, the group’s future prospects depend on more stable
conditions in financial markets. In addition, much rests on the
outcome of the struggle between the competing forces of
commodity price inflation and weakening global and domestic
demand, and the reaction of central bankers to it. The current
year requires careful cost control and due regard for the
importance of maintained liquidity. Fortunately the group
enjoys close relations with its bankers, notably The Royal
Bank of Scotland, who have demonstrated their strong
support with the renewal and extension of facilities sufficient
to sustain the group’s various activities during the current year
and beyond. The group’s prudent approach to speculative
development, and its strong balance sheet, will prove
increasingly important until improved market conditions begin
to be re-established. 
In addition to the unfortunate and painful damage it has
inflicted on shareholders, the sharp deterioration in all the
group’s markets has tested the morale and resilience of its
management and staff. To date such tests have been met
with great resolve, and I would take this opportunity to thank
and congratulate all those involved. I would also like to record
my thanks to Ross Murray and Richard Buck who have left
the board after serving the group for thirty years and twenty
years respectively. 
Pochin’s is a fine company with a well deserved reputation
among its clients, tenants, suppliers and employees. This will
sustain it through the current adverse circumstances enabling
it to benefit from the many opportunities which diligent and
hard work will identify as confidence and credit gradually
return to the property market.
Richard Fildes
22 September 2008 
Walker House, Liverpool Page 4
Chief Executive’s Report
Chief Executive David Shaw
Overview
The Pochin Group operates in the construction and property
sectors through four complementary, but autonomous,
trading divisions:
• Property investment and development
• Contracting
• Construction Services
• Residential development
Our operations are primarily in the North West region and
have been affected this year by a particularly tough property
market, which has resulted in an inability to complete a
number of planned property disposals and has largely
curtailed residential sales activity. 
Contracting operations have remained largely unaffected to
date but the division has been restructured during the year
and management has been reorganised so that it is better
placed to operate, should it be affected by worsening market
conditions. 
Construction Services, through Pochin Concrete Pumping,
operates throughout the UK and has faced different
challenges, most notably the increasing cost of fuel, and
these have eroded margins in the second half.     
Residential sales suffered a severe downturn, with only 39
completions added to the 21 sales brought forward from the
previous year. 
Although the group has generated operating profits in the
second half of the year, a prudent and cautious approach has
been taken in the current climate and the values of
landholdings and investments in the commercial and
residential divisions have been reassessed and, where
appropriate, written down to reflect the general downturn in
the sector.   
Reported group profits before tax on company, subsidiaries,
joint ventures and associates, are therefore only slightly ahead
of those reported at the half year. Heald Green
Headlines
• Turnover maintained at £115m
• Profits at £2.3m after provisions of £7.7m against
investments
• Property profits of £2.0m after provisions
• Joint venture contribution at £2.8m
• Contracting profits at £0.8m before reorganisation costs
• Forward orders for contracting of £55m
• Construction Services result maintained at £0.3m
• Residential developer losses increased by write downs of
land values
• Group banking facilities increased to provide liquidity
  Page 5
Chief Executive’s Report
Emerald Park, Crewe
  Page 6
Chief Executive’s Report
Property investment and development 
The year has seen a general market adjustment to property
values, which has impacted on the assets and trading
operations of the division. Investment values have fallen and
development activity has suffered further due to the effects of
the credit crunch. A prudent and cautious approach has been
taken and, where appropriate, the values of commercial
landholdings and property investments have been written
down to reflect the general downturn in the sector.   
Although activity is reduced and property disposals have been
extremely difficult to achieve, two significant profitable
transactions have been completed in the year. 
At Ellesmere, Shropshire, 3 acres of land were sold to Tesco
Stores Limited, following completion of a new road and
associated infrastructure works. The downturn in the housing
market has, however, deferred the planned sale of a further 17
acres of land with residential planning permission. The
remainder of the land on this development has the benefit of
planning permission for health and leisure uses and disposals
of these parcels are being pursued.  
The group’s interest in remaining industrial units at Valley
Court and office units at Verity Court, both recent
developments on our Midpoint 18 Business Park in
Middlewich, has been sold to Lincoln House Properties
Limited.
Undeveloped land at Midpoint 18 now has the benefit of
outline planning consent for employment use, but market
conditions and infrastructure issues remain as significant
hurdles to its development. 
In Crewe, Emperor Court, an office development of circa
22,000 sq.ft., is reaching completion and is located alongside
the Ramada Hotel site, sold last year.
The benefit of rent reviews, particularly on investment property
at Ormskirk, has created additional value, which has helped
to partly counter the effects of write downs in respect of
general market adjustments. The group’s portfolio of
investment property currently has occupation levels (by area)
of circa 93%.
Demand for space at Keele Science and Business Park also
remains strong, again resulting in high levels of occupation.
Joint Ventures
Despite the generally challenging climate, Manchester
Technopark Limited has successfully exchanged contracts for
the disposal of Reynolds House for £12m and our share of the
resulting surplus has contributed significantly to this year’s
results.  
We have continued to work on our joint projects in Liverpool,
Manchester and North Wales in conjunction with UK Land &
Property Limited. 
At Exchange Flags, in the centre of Liverpool’s financial
district, the £15m refurbishment of Walker House, designed
to create 220,000 sq.ft. of quality office space, is currently
being carried out by our Contracting division. Fit out works for
the anchor tenant, the Ministry of Defence, are due to
commence in October of this year. Meanwhile, further lettings
have been secured at Horton House, where prime tenants
such as Brabners, Knight Frank and Deloittes have increased
occupied space to circa 80%.
Wolseley Distribution Centre, Chorley
  Page 7
Chief Executive’s Report
At Harwarden Business Park in North Wales, the 25,000 
sq.ft. unit developed last year has been let and a further
scheme of small business units, with a total area of 40,000
sq.ft., is now under way. At Heald Green near Manchester
Airport, the first phase of the office park is nearing completion
amounting to some 45,000 sq.ft. of quality office space in
small business units.
Our joint venture with Castlewood Developments Limited in
Birkenhead continues. Following the completion of a revised
development agreement with Wirral Borough Council to
deliver a 95,000 sq.ft. foodstore in the town centre, the joint
venture has secured an Agreement to Lease with ASDA
Stores Limited. Site enabling works continue in parallel with
the CPO process, which is required to complete site
assembly.  
The Midpoint Partnership, in which we have a 25% share,
continues to market the completed Unit 75, a substantial
distribution facility on Midpoint 18 Business Park, Middlewich.  
The Trinity Court Development Limited apartment scheme in
Holyhead on Anglesey, in which we also have a 25% share,
has seen a number of sales in the year, with just 7 units and
some ground floor retail space remaining.
Contracting
Turnover, including work on development projects for our
property division, has been maintained at £85m 
(2007: £85m), despite several embryonic projects being
cancelled by clients after successful tenders had been made.
A strong performance in the second half resulted in a
profitable outcome for the year as a whole, before accounting
for reorganisation costs.  
Following an independent business review in Spring 2008, a
new divisional managing director was appointed to oversee
the reorganisation of the division. The divisional board has
been restructured and a review of strategy is under way.
Operational and support management teams have also been
reorganised in order to focus on the key issues identified in
the review process, including further improvements to bid
management processes and an expansion of the business
development resource.  
A number of key projects were delivered in the year including
the Environmental Science building for Bangor University,
which received the LABC (Wales) award for Best Sustainable
Development 2008 and has been nominated to go forward to
HQ Chester Page 8
Chief Executive’s Report
Emperor Court, Crewe
  Page 9
Chief Executive’s Report
The following illustrates the variety of our contracting projects during the year:
Commercial/Manufacturing
Morson Group Plc
Construction of 5 storey office development
(86,017 sq.ft.), Centenary Way, Salford.
DSV Road Ltd
15,850 sq.ft. extension to existing industrial unit/transport
warehouse with associated external works, Greeba Road,
Wythenshawe.
Easter Developments (Haydock) Ltd – (R)
Construction of 6 industrial units with fully fitted office
accommodation and secure external areas (76,000 sq.ft.),
Haydock.
Helios (Industrial Developments) Ltd
Construction of 8 speculative industrial units with ground
floor core area and first floor offices (224,000 sq.ft.),
Buckshaw Link, Chorley.
Hawarden Business Park Ltd – (R)
Construction of 2 industrial units with associated office
and welfare areas, Plots 3 & 4, Hawarden Business Park.
Pochin (Developments) Ltd – (R)
Construction of 3 storey office development (21,000
sq.ft.), Emperor Court, Crewe.
Refurbishment of existing building to form 3 retail units
(6,500 sq.ft.), Longton, Staffordshire.
Patrick Properties Ltd – (R)
Construction of 3 storey office development comprising 2
units of 20,000 and 30,000 sq. ft. including external car
parking, substation and back up generators, Emerald
Park, Crewe.
UKLP Developments Ltd – (R)
Construction of 7 speculative 2 storey office buildings
with associated external works (89,000 sq.ft.), Heald
Green, Cheshire.
HQ Chester Ltd – (R)    
Design and construction of 35 residential apartments, 85
bed hotel, restaurant and commercial offices, Chester.
Ipsen Biopharm Ltd – (R)
Enabling works and construction of new pharmaceutical
development building (30,634 sq.ft.), Wrexham Industrial
Estate.
KK Fine Foods Ltd – (R)
25,340 sq.ft. extension to existing food product facility
comprising single storey warehouse and two storey office
area, Deeside.
UKLP Walker House Ltd – (R)
Refurbishment of landmark Grade II building into offices
(230,000 sq.ft.), ground floor retail and associated
underground parking facilities, Walker House, Liverpool.
Education
Mid-Cheshire College 
Construction of 3 storey building for further education
including associated library and resource services,
Winsford, Cheshire.
Leisure
Frederic Robinson Ltd – (R)
Formation of new hygienic bottling plant area within
existing factory, together with extensive re-configuration of
openings for new conveyor systems, Bredbury, Stockport.
Refurbishment and alterations to “The Grapes” public
house, Hyde, Stockport.
Health
Henry Davidson Developments Ltd – (R)
Construction of 3 storey medical centre incorporating a
pharmacy and associated external works, Nantwich,
Cheshire.
Residential
Prospect (GB) Ltd – (R)
Construction of two 5 storey apartment blocks each
consisting of 60 apartments, Broadway, Salford.
(R) Repeat Client Page 10
Chief Executive’s Report
The Meadows, Cockshutt
the National Awards. We now have £55m of secured work for
the current year (2007: £64m) and there is an encouraging
level of enquiries in hand despite a noticeable decline in a
number of our traditional areas of activity. The education
sector, in particular, remains strong, evidenced by our recently
securing a £7m project to build a new Learning Zone building
for Mid-Cheshire College in Winsford. 
The focus will remain on delivering quality projects to clients’
satisfaction. Approximately 71% of revenue (2007: 77%) was
achieved as a result of negotiated or partnered contracts and
approximately 52% (2007: 50%) of our revenue came by way
of repeat business. Our surveys indicate that we have
maintained our customer satisfaction ratings at 92% (2007:
92%).
Construction Services
Concrete Pumping sales rose by some 7% to £15m (2007:
£14m), achieved from 21,206 jobs (2007: 20,795 jobs) at an
average price per job of £648 (2007: £621), with 1.44m cubic
metres of concrete pumped (2007: 1.38m cubic metres).
Utilisation averaged 77% (2007: 76%) and site reliability
remained in excess of 99%. 
After a solid first half, the second half started slowly and the
price of fuel became the most significant factor affecting
margin. Increasing fuel costs were initially absorbed but
surcharges are being applied from June 2008.
There has been a noticeable decline in activity in the Northern
and Midlands areas of England but the rest of the UK has not
been affected to the same degree, and there are a number of
public sector projects in the pipeline. 
Pumi operations were reduced in line with the policy set out
last year and the division is currently operating 12 machines.
Residential development
The housing market, particularly in our region, has suffered
from the well publicised combination of a collapse in
consumer confidence and an inability for first time buyers to
obtain satisfactory mortgages. The downturn in the market
has led to a review of the carrying value of land and work in
progress, with write downs in values being made where
appropriate. Trading losses have therefore been increased. 
The growth path of the division has been halted and the
number of sales completions was down on last year at 60
(2007: 69), achieved from 7 sites across the region. There are
just 4 reservations carried forward into the new financial year
(2007: 21 reservations), an exceptionally low level, indicating
the severity of current market conditions. 
The average selling price was £135,000, (2007: £159,000),
which is below the regional figure for new homes released by
the Halifax of £171,000 for the North West and below the
regional figure for all properties from the property website
Rightmove at £178,000. This decline reflects an increase in
the proportion of affordable homes allocated in planning
permissions for site development. 
The land bank stands at 104 plots (2007:136 plots) with full
planning permission, with a further 112 plots (2007: 66 plots)
secured and awaiting planning permission, excluding
strategic land held under option. 
David Shaw 
Chief Executive
22 September 2008  Page 11
Chief Executive’s Report
Haydock Page 12
Financial Review
Finance Director John Edwards
Group Results
Total group sales were £115.3m (2007: £116.6m) resulting in
a profit before tax of £2.3m (2007: £8.9m). After accounting
for taxation charges in joint ventures and associated
companies of £0.5m, the reported IFRS group profit before
taxation is £1.8m (2007: £9.1m). The trading result for 2008
includes a write down of investment carrying values and
residential land holding amounting to £9.2m, which reflects
the impact of the downturn in the property market in the wake
of the credit crunch.
The Contracting division recorded gross turnover of £84.8m
(2007: £84.9m), which included internal sales of £2.5m.
Despite the flat year on year activity, margins on contracts
completed in the year held up well, with underlying contract
profitability in line with the previous year. Profit before tax was
£0.3m (2007: £0.5m excluding a pension credit of £1.6m)
after charging one-off restructuring costs of £0.6m.
The Property division was the first to see a downturn in
market activity and values. As a consequence, the number
and the value of anticipated transactions were reduced and
investment activity curtailed to safeguard liquidity. However,
those transactions successfully completed included the sale
of part of the land at Ellesmere, Shropshire to Tesco Stores
Limited for retail development and the exchange of contracts
for the sale of Reynolds House at Manchester Technopark
Limited, a joint venture with Manchester Science Park
Limited. Gross rental income from investment properties
amounted to £4.1m (2007: £3.6m). Overall, the division,
including the group’s share of joint venture income, showed a
profit before tax of £4.9m (2007: £7.3m profit) after write
downs of £8.6m (2007: £1.5m).
The Construction Services division, providing specialist hire of
concrete pumps across the UK, generated sales of 
£14.7m (2007: £14.2m). Profit before tax was £0.3m 
Helios City, Chorley
  Page 13
Financial Review
(2007: £0.1m). Margins came under severe pressure in the
second half due to escalating fuel costs, which proved difficult
to pass on in the short term.
The Residential division was the hardest hit by the credit
crunch. Sales for the year were £8.1m (2007: £11.0m) from
seven operating sites. A downturn in values, consumer
confidence and mortgage availability combined to reduce
significantly the rate of private house sales in the second half
year. Following reappraisal of existing developments and write
down of land values, there was a loss for the division of £1.7m
(2007: £0.8m profit).
Earnings Per Share and Dividend
Diluted earnings per share were 12.7p (2007: 33.2p). 
Overall, the group benefited from a tax credit of £0.3m (2007:
£2.2m tax charge). The company and subsidiaries had a tax
credit of £0.8m (2007: £2.3m tax charge) on a loss of £0.5m
(2007: £8.8m profit), whilst joint ventures and associates
suffered a tax charge of £0.5m (2007: £0.1m tax credit) on
profits of £2.8m (2007: £0.3m). This favourable effective tax
rate reflects the utilisation of available tax losses in joint
ventures and associates, indexation allowances on
revaluation gains and the phasing out of industrial building
allowances.
Subject to approval at the AGM, a final dividend of 3.0p per
share (2007: 6.25p) will be paid on 31 October 2008, resulting
in a full year dividend of 6.0p (2007: 9.25p). This reduced
dividend reflects, in part, the group’s efforts to conserve cash
resources during challenging economic conditions.
The dividend is covered 2.1 times by earnings (2007: 3.6 times).
Concrete pumping, Speke
  Page 14
Financial Review
Balance Sheet
Net assets have increased to £53.1m (2007: £51.5m)
equivalent to 255p per share (2007: 248p).
The value of property non current assets grew in the year to
£48.0m (2007: £43.0m) with the addition of the completed
Ormskirk retail development. Due regard was made to
weakening property markets and the remainder of the group’s
property portfolio was accordingly written down by £0.9m.
Investment in joint ventures and associated companies
increased by £9.8m to £25.4m as a result of the group’s
participation in the acquisition of Walker House, Liverpool and
continued development of Birkenhead town centre retail
project.
Stocks and working progress have reduced by £3.5m,
following completion of the Ormskirk project and write down
of housing stock and residential land values.
In accordance with IAS19 there was a pension surplus of
£0.9m (2007: £0.6m deficit), which is shown in the group
balance sheet as a current asset.
Joint Ventures and Investments
The group has continued to support existing projects and
despite the lack of short-term opportunity, has maintained its
strategic relationship with partners to provide future business
when the market improves. Net investment in joint ventures
and associated companies has increased in the year by
£9.8m to £25.4m.
The group has traditionally taken a prudent view towards
recognising the full value of investments on the balance sheet,
especially those at an early stage of development or that are
speculative in nature. With the downturn in property yields
and hardening economic conditions in mind, joint venture
investments have been written down and the charge to profit
in the year was £7.7m (2007: £1.5m).
A full list of all group joint venture interests is provided in Note
14 to the accounts.
The group continues to have investment interests in
Manchester Science Park Limited (£1.5m) and UK Land &
Property Limited (£0.7m). Prosperity Court Partnership and
Keele Park Developments are treated as subsidiary
companies in these accounts and third party minority
interests are shown in the income statement.
Borrowings, Cashflow and 
Financing Risk
New borrowing facilities were arranged during the year with
The Royal Bank of Scotland (RBS) to provide appropriate
funding to support the financial obligations of the group and
sufficient liquidity during a period of economic uncertainty.
Total facilities of £47m are available from RBS, of which £10m
are unsecured. A further £13.5m facility is provided by Bank
of Scotland to fund Keele Park Developments Limited.
Net borrowings increased in the year to £42.9m (2007:
£31.0m), funding projects at Birkenhead, Walker House in
Liverpool and Ellesmere, Shropshire.
There was cash in hand at 31 May of £4.0m (2007: £0.2m).
Net cash movements in the year were:
2008 2007
Operating activities 2.2 5.2
Sale/(purchase) of assets 0.3 (1.1)
Investment in joint ventures (12.4) (3.2)
Interest and dividends (1.5) (1.3)
Taxation (0.5) (2.4)
Increase in borrowings (£m) (11.9) (2.8)
The group funds its operations through the use of cash, loans
and various liquid resources such as debtors and trade
creditors. Funding availability and the management of interest
rates and liquidity risks are the responsibility of the Finance
Committee, which is responsible to the main board for
implementing the group’s treasury policy.
The group has minimal fixed interest rate borrowings and
continually reviews the need to hedge against interest rate
movements. During the year the group entered into a 3 year
swap arrangement to fix its LIBOR exposure to 4.98% on
£15m of new debt. In addition, there continues to be an
interest rate hedge in respect of borrowings in Keele Park
Developments Limited. As at 31 May 2008, there was a
combined recognised gain on these financial instruments of
Hawarden Business Park
  Page 15
Financial Review
£0.5m (2007: £0.2m). The favourable movement in the year of
£0.3m has been recognised in the income statement of the
group in accordance with IFRS convention.
Certain associated companies are financed by long term
repayment loans to finance investment property assets and
other joint venture companies are financed by short and
medium term bank borrowings. The group regularly reviews
the risk of exposure to interest rate movements with its
partners and where appropriate, hedges against that risk on
a project by project basis.
The group continues to have minimal exposure to foreign
currency exchange risks and accordingly does not require a
policy to hedge such exposure.
Full disclosure of financial instruments, interest rate and
liquidity risks are shown in Note 23 to the accounts.
Pensions
The group operates a defined benefits (DB) scheme and a
defined contribution (DC) scheme for its employees. The DB
scheme, closed to new members since 31 December 2001,
undergoes its scheduled full triennial actuarial valuation in
2008. Following the last valuation in 2005, the group took
action to preserve the long term viability of the scheme,
making changes to members’ benefits and providing £1.2m
as a special contribution to the scheme.
Total contributions paid this year to the DB scheme were
£0.4m (2007: £1.2m). Payments to the DC scheme were
£0.2m (2007: £0.2m).
Under IAS19 the DB pension obligations are shown in the
balance sheet of the group and the movement in the year
reflected in the income statement and statement of
recognised income and expense. As a result of the action
taken by the group, referred to above, combined with
favourable movements in investment values and bond yields
during the year, a surplus for the DB Scheme of £0.9m (2007:
£0.6m deficit) is reported.
Full disclosure of all DB scheme assumptions are set out in
Note 7 to the accounts.
Financial Reporting
There have been no changes to accounting policies in 2008
and the group continues to report in accordance with
International Financial Reporting Standards.
John Edwards
Finance Director
22 September 2008
Concrete pumping, Milford Haven Page 16
Directors
Michael Chadwick, 57 Non-Executive Director
Michael Chadwick was appointed to the board in September
2005. He is executive chairman of Grafton Group plc, a
company listed on the London and Irish stock exchanges. In
the 23 years he has held this position, Grafton Group plc has
grown substantially in Ireland and has built up UK businesses
with annual sales in excess of £1 billion. He is also a director
of other companies in which he has invested.
n l s
John Edwards, 50 Finance Director
John Edwards is a Fellow of the Chartered Institute of
Management Accountants and joined the group as company
secretary in August 2005 and served in this role until July
2006. He was appointed finance director in September 2005.
? ? ?
Richard Fildes, 63 Non-Executive Chairman
Richard Fildes became chairman in January 2007, having
joined the board in August 2006. As managing director he led
the transition of Barlows plc, based in North West England,
from a textile packing company to a property investment and
development company. He has served as chairman of
Barlows plc since 1997 and is a former chairman and director
of Allied Leather Industries plc. He is also on the board of a
number of companies based in North West England, including
Aintree Racecourse Company Limited.
n l s
Nicholas Fry, 61 Non-Executive Director
Nicholas Fry was appointed to the board in September 2005.
He is a non-executive director of Brixton plc, BlackRock
Smaller Companies Trust plc and Absolute Return Trust
Limited. He spent much of his career in investment banking,
for many years with S. G. Warburg & Co Limited (now part of
UBS AG). He is a qualified accountant and was a partner in
KMPG between 1998 and 2002 and senior adviser to KMPG
Corporate Finance until March 2005.
n l s
Audit Committee n
Remuneration Committee l
Nominations Committee s
James Nicholson, 43 Property Development Director
James Nicholson is a Member of The Institute of Civil
Engineers and has been a director of Pochin Developments
Limited since 1997. He was appointed to the board as
property development director in April 2003.
? ? ?
Sylvia Nicholson, 66 Non-Executive Director
Sylvia Nicholson is the daughter of the group’s founding
chairman, C. W. T. Pochin and has been a director since
1965.
s
David Pochin, 43 Construction Services Director
David Pochin has been a director of Pochin Plant Limited
since 1996 and was appointed to the board as a director in
2004 with specific responsibility for the construction services
division.
David Shaw, 58 Chief Executive
David Shaw is a Fellow of the Chartered Institute of Chartered
Accountants in England and Wales and joined the group in
1980. He was appointed company secretary in 1981 and
served in this role until April 2004. He was appointed finance
director in 1993 and chief executive in April 2004.
?
David Hedley, 47 Company Secretary
David Hedley is a solicitor and joined the group in October
2005. He was appointed company secretary in July 2006.
? Page 17
Corporate Social Responsibility
The group endeavours to conduct its business in a manner
which ensures that the public, its clients and employees are
at all times protected from any potentially harmful impact of its
activities.
Health and Safety
All divisions report to the director responsible for health and
safety on a monthly basis to ensure that all matters are
properly addressed. Every effort is made to raise the profile
and importance of health and safety issues throughout the
group. 
Following the success of the Construction Services division,
the Contracting division received OHSAS 18001 registration
from the British Standards Institution (BSI). This is an
international occupational health and safety management
system specification and registration demonstrates that the
company has the necessary systems and procedures in place
to manage health and safety effectively. The division was also
successful in renewing its accreditation under the
Contractors’ Health and Safety Assessment Scheme and
National Britannia SAFEcontractor Scheme. 
Following the introduction of BS8476:2007 (Code of Practice
for the Safe Use of Concrete Pumps), the Construction
Services division distributed a circular to over 900 customers,
offering a training DVD and providing points of contact for
safety and technical queries.
Awareness is critical in matters relating to health and safety
and circulars and bulletins are regularly issued to employees.
Appropriate training is also provided to improve knowledge
and understanding. For example, over 3,400 safety rules and
guidance booklets were distributed to employees and
subcontractors, during the year.
The Contracting and Construction Services divisions issued
an updated induction film to present the group’s safety culture
to individuals who may not have worked with the group
before. The film is available in a number of languages as more
foreign workers are joining the industry.
Half Tide Dock, Liverpool
  Page 18
Corporate Social Responsibility
It is pleasing to report that the group has achieved three
further awards this year:
ROSPA Silver – Pochin (Contractors) Limited
ROSPA Gold – Pochin Concrete Pumping Limited 
ROSPA Gold – Pochin Homes Limited
This brings the total to 23 awards in the last seven years.
The Property division ensures that the sites and buildings
under their control are regularly inspected to ensure that they
are in a safe and secure condition and regular reports are
submitted to the Health and Safety team. The Residential
division also submit regular reports regarding any issues
which arise on their sites.
Environmental
The group operates site waste management plans on all
construction sites in accordance with the Site Waste
Management Plans Regulations 2008. All senior managers
within the Contracting division have attended one or more
workshops which have been organised with the help of
government sponsorship over the last 12 months. 
The Carbon Trust carried out a survey of energy usage at
head office and the recommendations contained in their
report have either been actioned or are planned.
Good progress has been made throughout the group in
improving the accuracy of data collection for the reporting of
environmental key performance indicators. In the meantime,
awareness has been raised of the relevant issues and the
importance of energy saving, recycling and waste reduction in
all areas.
The group is becoming increasingly involved in the
construction of more energy efficient buildings and the use of
sustainable building products, and is currently working on an
environmental checklist for the use of design teams at the
Visage, Salford
outset of new projects. All construction sites are registered
with the Considerate Constructors Scheme and many
certificates of compliance have been achieved throughout the
year.
Awareness is again a critical factor in improving environmental
performance and the group has introduced appropriate
signage at the entrance to all construction sites so that it is
clearly visible alongside the traditional health and safety
guidance. Induction films also include specific guidance on
environmental matters to all users, including customers and
subcontractors.
The Residential division is taking active steps to meet new
standards in housing construction in advance of their
compulsory implementation.
People
The group currently employs over 350 people. They are the
interface with customers, the representatives of the group and
its culture, and one of its most important assets.
Throughout the year, the Contracting division was recognised
as an “Investor in People”. This involves a rigorous
assessment process which independently confirms that the
group’s culture of training, development, communication and
reward is properly and successfully implemented. Following a
survey of employees, the division reached the final of the
Contract Journal “Best Places to Work” awards.
The health of employees remains important to the group and
regular site visits are made by a qualified nurse who is
available privately to advise on any health issues.
The group continues to implement the policy that all
employees, or potential employees, receive fair and equal
treatment without discrimination.
  Page 19
Corporate Governance
Application of principles
The group is committed to maintaining high standards of corporate governance and the board is accountable to the
shareholders for implementation of the principles underlying these standards. The steps taken throughout the group to maintain
good corporate governance are set out below.
Compliance
The board confirms that it is reporting in accordance with the requirements of the revised Combined Code ("the Code") except
that Mrs. S. E. Nicholson and Mr M Chadwick, who served throughout the year as non-executive directors, could not be
considered to be independent of the company’s management and shareholders in view of their shareholdings. Mr. R. Fildes,
who was appointed as an independent non-executive director in August 2006, could not be considered independent following
his appointment as chairman in January 2007. The company has not, therefore, complied with provisions A.3.1, A.3.2, A.4.1,
B.2.1 and C.3.1 of the Code. 
The board of directors
The company supports the concept of an effective board leading and controlling the group. The board is responsible for
approving overall group policy and strategy. It meets on at least six occasions in each calendar year and has a formal schedule
of matters reserved for its decision, including the approval of interim and preliminary announcements, approval of annual report
and accounts, approval of dividend policy, approval of major capital expenditure, treasury management, appointment of board
members and professional advisors and, in a supervisory capacity, formulation of the group’s risk management strategy and
health, safety and environmental policies. 
Management supplies the board with appropriate and timely information both informally and formally through a structured
reporting process of committees, including monthly executive and finance committees. A full and open debate is encouraged
on all matters relating to strategy, performance, resources, key appointments and standards of conduct at all meetings of the
board. The directors are also free to seek any further information they consider necessary to fulfill their duties. All directors have
access to the advice and services of the company secretary and, where appropriate, independent professionals at the expense
of the company. Training is available for new directors and ongoing training and education is provided to other directors as
necessary.
At the date of this report the board comprised four executive directors and four non-executive directors. The names and
biographical details of all the directors are shown on page 16.
The roles of chairman and chief executive are separated and clearly defined. Mr. R. Fildes served as chairman throughout the
year and Mr. D. Shaw served as chief executive throughout the year. The other executive directors who also served throughout
the year were Mr J. Edwards, finance director, Mr J. W. P. Nicholson, property development director and Mr D. D. R. Pochin,
construction services director. Mr R. G. Buck served on the board until his resignation on 31 October 2007 and Mr L. R. Murray
served on the board until his resignation on 31 May 2008. 
The non-executive directors also served as members of the audit, remuneration and nominations committees. The non-
executive directors have skills that complement those of the executive directors. Mr. R. Fildes served as chairman throughout
the year and Mr. N. R. L. Fry served as senior independent non-executive director throughout the year. Mr. M. Chadwick and
Mrs. S. E. Nicholson also served throughout the year.
All directors are subject to election by shareholders at the first AGM following appointment and to re-election by shareholders
every three years thereafter in accordance with the Articles of Association of the company (“the Articles”). Mr J. Edwards, 
Mr N. R. L. Fry and Mr M. Chadwick will therefore be retiring at this year’s AGM and, being eligible, will offer themselves for 
re-election.
Accountability and audit
The board has formally constituted three sub-committees for audit, remuneration and nominations. Membership and a
summary of the terms of reference of these committees are detailed below. 
  Page 20
Corporate Governance
Audit committee
Throughout the year the audit committee comprised the following non-executive directors: Mr. N. R L. Fry (chairman), Mr. R.
Fildes and Mr. M. Chadwick.
The terms of reference of the committee include reviewing the group’s management of risk, internal financial and operating
controls, reviewing the scope and results of the audit, its cost effectiveness, the independence and objectivity of the auditors,
including fees in relation to, and in the nature of, non-audit services and, annually, the need for an internal audit function. The
committee meets at least three times a year and external auditors attend together with the executive directors as and when
required.
Remuneration committee
Throughout the year the remuneration committee comprised the following non-executive directors: Mr. N. R. L. Fry (chairman),
Mr. R. Fildes and Mr. M. Chadwick.
The committee has the responsibility for making recommendations to the board for the remuneration policy of the company
and also packages for individual directors. It carries out the policy on behalf of the board. In carrying out these responsibilities
the committee has had full regard to the requirements of the Directors Remuneration Report Regulations 2002 and the Code.
Nominations committee
Throughout the year the nominations committee comprised the following non-executive directors: Mr. R. Fildes (chairman), 
Mrs. S. E. Nicholson, Mr. N. R. L. Fry and Mr. M. Chadwick. 
The committee makes recommendations to the board on all board appointments and takes advice from external consultants
when necessary. 
Attendance record
Board Audit Remuneration Nominations
Total number of meetings 2007/08 8 4 3 1
M. Chadwick 8/8 4/4 3/3 1/1
J. Edwards 8/8
R. Fildes 8/8 4/4 3/3 1/1
N. R. L. Fry 8/8 4/4 3/3 1/1
D. R. R. Pochin 7/8
J. W. P . Nicholson 7/8
S. E. Nicholson 8/8 1/1
D. Shaw 8/8
Notes:
1. Mr. R.G. Buck attended 3 board meetings up to 31 October 2007.
2. Mr. L.R. Murray attended 7 board meetings up to 31 May 2008.
  Page 21
Corporate Governance
Relations with shareholders
The company values the views of its shareholders and recognises their interest in the company’s strategy and performance,
board membership and quality of management. The board has dialogue with certain of its institutional and other shareholders
on numerous issues during the year and is pleased to promote the mutual understanding of objectives. In accordance with
section D1.2 of the Code the chairman ensures that the views of shareholders are communicated to the board as a whole.
The AGM is used to communicate with private investors and they are encouraged to participate. The company arranges for
Notice of the AGM and related papers to be sent to shareholders at least 21days before the meeting. The chairmen of the audit,
remuneration and nominations committees are available at the AGM to answer questions. Separate resolutions are proposed
on each issue and clear distinction is also drawn between ordinary and special resolutions to ensure they are given due
consideration. There are separate resolutions to approve the annual report and accounts and the remuneration report. The
company counts all proxy votes and indicates the level of proxies lodged on the resolutions after they have been dealt with by
a show of hands. The company also displays its interim and final announcements on the company website.
Internal control
The board has overall responsibility for the group’s system of internal control and for reviewing its effectiveness on an ongoing
basis. The board confirms that, in accordance with the "Guidance on Internal Control" (the Turnbull Report), the group has taken
steps necessary to ensure compliance with principle C.2 of the Code. The board has overall responsibility for the management
of risk and has in place a full risk and control register of the group’s activities. This register is reviewed at least annually to monitor
and ensure the adequacy of its procedures for the management and control of risk. This process involves each of the subsidiary
company boards carrying out periodic reviews of the key risk areas within its own business, including a review of health and
safety (risks, measures and policies), response to changes in legislation and the identification of commercial risk. Each
subsidiary company reports this information to the board. This process enables the board to identify areas where procedures
need to be changed or implemented throughout the group and to initiate appropriate action plans. The board monitors progress
towards successful completion of these action plans and the identification of any new risks through a process of ongoing
review.
Although the group has the relevant systems and procedures in place, the board considers the management of risk to be an
ongoing process and to increase entrenchment of these procedures throughout the group, the board encourages the
management of its subsidiary companies to conduct reviews of risk management strategies and control measures at least
annually and also to report to the board on any changes in activity that may have a significant risk management impact. In the
light of the above, the board is of the view that the group has established procedures in place to identify, evaluate and manage
the significant risks faced by the group. Key elements of the group’s internal control procedures include: 
• well established budget and reporting functions that are regularly monitored throughout the year by the board;
• clear lines of authority between the management of the subsidiary companies and the board;
• well established procedures by which the management of the subsidiaries submit proposals for major capital
expenditure for approval by the board.
• an ongoing process of reviewing risks faced by the group, together with clear board responsibility for implementing
measures to manage and, where possible, reduce these risks. 
The board has also reviewed the operation and effectiveness of the group’s system of internal financial control for the financial
year and the period up to the date of approval of the financial statements. The systems that the company has in place for risk
management and financial control are designed to manage rather than eliminate the risk of failure to achieve business objectives
and can only provide reasonable, not absolute, assurance against material misstatement or loss. The board has considered the
need for an internal audit function, but has decided that it is not justified in view of the current size of the company; a decision
which the audit committee reviews annually. 
Going concern
After making enquiries, the directors have a reasonable expectation that the group has adequate resources to continue in
operation for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial
statements.  Page 22
Directors’ Remuneration Report
Section 1: Information not subject to audit 
Directors’ remuneration
In accordance with section 241A of the Companies Act 1985 the board presents the Directors’ Remuneration Report for
shareholder approval. The report, as set out below, will be put to shareholders as a separate resolution for approval at the AGM
and the chairman of the remuneration committee, Mr. N. R. L. Fry, will be available at the meeting to answer any questions on
the content of this report.
Remuneration committee
In accordance with provision B.2.1 of the Code the committee’s terms of reference are based on the guidance published by
the Institute of Chartered Secretaries & Administrators and these are available on request from the company secretary. The
committee has the responsibility for making recommendations to the board on the company’s general policy on remuneration
of senior management, including specific packages for individual directors. It carries out the policy on behalf of the board. The
members of the committee are listed on page 20. None of the members of the committee, other than as shareholders, has any
personal financial interest in the matters to be decided, potential conflicts of interest arising from cross-directorships nor any
day to day involvement in running the business. In carrying out its responsibilities, the committee has had full regard to the
requirements of the Directors Remuneration Regulations 2002. The committee met on three occasions during the year.
Meetings of the committee are normally attended by the chairman and the chief executive, as appropriate, except where their
own remuneration is discussed. The committee consults the chairman of the company and the chief executive, and takes
professional advice from remuneration consultants, HayGroup, when necessary. 
Remuneration policy
The policy of the board is to provide terms of employment and remuneration packages for executive directors designed to
encourage the enhancement of the company’s performance and to ensure that remuneration packages offered are competitive
and will attract, motivate and retain executive directors of the right calibre, in line with appropriate market rates. 
As well as considering conditions in the group as a whole, the company positions remuneration by reference to the median paid
for comparable roles amongst companies of similar size.
Executive directors’ contracts
The company has contracts of service with its executive directors, Messrs Edwards, Nicholson, Pochin and Shaw. These
contracts provide for twelve months notice of termination.
Non-executive directors’ contracts
The company has no formal contracts of service with non–executive directors. Mrs. S. E. Nicholson has not been appointed
for a specific term of office. Mr. N. R. L. Fry and Mr. M. Chadwick were both appointed on 22 September 2005 for a three year
fixed term with provision for twelve months notice of termination. Mr. R. Fildes was appointed on 7 August 2006 for a three year
fixed term with provision for twelve months notice of termination.
Policy on executive directors’ remuneration
The main elements of executive directors’ remuneration are basic annual salary, annual car allowance, annual bonus payments
and share options awarded under the scheme approved by shareholders in 2001, and are detailed below:
Basic Salary
The committee reviews the basic salary of each executive director in July of each year. The committee reaches its decision on
remuneration of executive directors based on three principal factors:
• Level of responsibility
• External market competitiveness
• Individual performance in the role
Bonus
Annual bonus payments are linked to group, divisional and personal performance against pre-determined targets approved by
the committee. Section 1: Information not subject to audit (continued)
Share options
Under the terms of the share option scheme, Messrs Edwards, Nicholson, Pochin and Shaw are eligible for options to be
granted. There is no long-term incentive plan in operation. The committee has responsibility for supervising the scheme and the
grant of share options under its terms.
Other benefits
Executive directors are paid an annual car allowance and appropriate reimbursement of mileage undertaken on the company’s
business. The annual allowance is based upon the notional value of a company car appropriate to the executive director’s
position in the company. The principal benefit-in-kind is the provision of private health insurance cover. 
Policy on non-executive directors’ remuneration
Levels of remuneration for non-executive directors are set by the board and reflect the time commitment and responsibilities of
the role. Non-executive directors do not have a contract of service, are not eligible to join the company’s pension scheme and
cannot participate in the company’s share option scheme, however, they are reimbursed their reasonable expenses for
attendance at meetings.
Details of the emoluments of each director and non-executive director are set out on page 25.
Directors’ pension arrangements
Pension benefits for certain executive directors are derived from contributions paid by the company, and those directors, at
rates advised by the actuary to the Pochin’s & Associated Companies Retirement Benefits Plan, which is a defined benefit
scheme. No element of remuneration other than basic salary is pensionable. Normal retirement date is on reaching age 65, with
a pension 2/3 of final pensionable salary subject to completion of 25 years pensionable service. The defined benefit scheme
was closed to new members with effect from 1 January 2002 and, from that date, new employees are eligible to become
members of a defined contribution scheme within the Pochin’s & Associated Companies Retirement Benefits Plan. The pension
benefits for Mr. J. Edwards are derived from contributions paid by him and the company at pre-determined rates under the
defined contribution scheme. 
Performance graph
The following graph shows the company’s performance, measured
by the total shareholder return ("TSR"), compared with the
performance of the FTSE small cap index. This index was chosen as
the most suitable comparator group as it represents smaller
capitalised companies. TSR is defined as the percentage change
over the period in market price of shares assuming the reinvestment
of income and funding of liabilities of the theoretical holding.
Page 23
Directors’ Remuneration Report
50
100
150
200
250
300
2003 2004 2005 2006 2007 2008
Pochin's PLC
FTSE small cap index
Pochin’s PLC TSR vs FTSE small cap index TSR
Source: Thomson Datastream Page 24
Directors’ Remuneration Report
Section 1: Information not subject to audit (continued)
Forward looking policy statement
Bonus
Messrs Edwards, Nicholson, Pochin and Shaw receive certain elements of remuneration that are performance related. All are
eligible for annual bonus payments that are linked to group, divisional and individual performance against pre-determined criteria
with a maximum award capped at 50% of salary. Each year the remuneration committee determine the appropriate level of
bonus for each executive director, which is dependent on both the above performance criteria and their wider contribution to
the group.
Share options
Messrs Edwards, Nicholson, Pochin and Shaw are eligible for the award of share options under the share option scheme. The
exercise of any such option is made conditional upon the satisfaction of performance conditions set by the board (acting
through the remuneration committee) at the date of grant. Under the scheme rules the remuneration committee has the power
to set appropriate performance criteria on an annual basis such that significant and sustained improvement in the underlying
financial performance of the group or any of its subsidiary companies is achieved. The remuneration committee also has the
power to review, amend or revise these criteria, having regard to market conditions prevailing at that time, to ensure these
targets or conditions are appropriate.
Contracts of service
It is the company’s policy to have in place contracts of service with its executive directors. Under the terms of these contracts
the executives’ employment with the group continues (subject to the terms of the contract) until determined by either party
giving to the other not less than 12 months written notice. If notice should be served by either party the group has the right to
terminate the executive’s employment by paying in lieu of notice, on the following terms: 
• payment will be the basic salary only of the director and no account shall be taken of any bonus, pension contributions
or any benefits in kind; and
• payment shall be subject to deductions for income tax and national insurance contributions; and
• the director does not have an automatic right to payment in lieu of notice.
General policy
The remuneration committee has a policy of keeping all of the above issues under annual review to ensure these policies and
provisions are appropriate. Page 25
Directors’ Remuneration Report
Section 2: Information subject to audit
Summary of director’s emoluments
The remuneration paid to each director for the year to 31 May 2008 is as follows:
Benefits-in- Compensation
kind and for loss                Total remuneration
Salary Bonus allowances of office 2008 2007
£’000 £’000 £’000 £’000 £’000 £’000
R. G. Buck 
(to 31 October 2007) 35 – 10 146 191 119
M. Chadwick 15 – 1 – 16 17
J. Edwards 109 7 26 – 142 149
R. Fildes 77 – – – 77 40
N. R. L. Fry 33 – – – 33 32
L. R. Murray 
(to 31 May 2008) 139 – 28 230 397 179
J. W. P . Nicholson 100 7 24 – 131 133
S. E. Nicholson 15 – 1 – 16 31
D. R. R. Pochin 89 626 – 121 121
D. Shaw 178 10 28 – 216 240
W. G. Underwood
(to 3 November 2006) – ––– – 12
J. H. Woodcock
(to 31 December 2006) – – –– – 157
Total 790 30 144 376 1,340 1,230
Total 2007 885 158 187 – 1,230
Summary of pension benefits
Retirement benefits accruing to directors under the group’s defined benefit scheme are as set out below. Details of the scheme
are set out in note 7 on page 49.
Transfer value of
Transfer Transfer Change in Members’ the increase in
value of value of transfer contribution accrued pension
accrued accrued value of in the year net of members
pension at pension at accrued towards contribution 
31 May 2007 31 May 2008 benefits pension and inflation
£’000 £’000 £’000 £’000 £’000 
R. G. Buck (to 31 October 2007) 360 356 (4) 2 4
L. R. Murray (to 31 May 2008) 1,102 1,210 108 10 28
J. W. P . Nicholson 317 330 13 7 5
D. R. R. Pochin 308 304 (4) 6 4
D. Shaw 1,717 1,955 238 12 –
The transfer values disclosed above do not represent a sum paid or payable to the individual director. Instead they represent
a potential liability of the Pochin’s & Associated Companies Retirement Benefits Plan.
R. G. Buck and L. R. Murray remain members of the scheme, but no further contributions will be made. Page 26
Directors’ Remuneration Report
Section 2: Information subject to audit (continued)
Increase in
Members’ accrued pension Accrued Accrued
Age at contribution in the year pension pension
31 May in the year at 31 May at 31 May at 31 May
2008 towards pension 2008 2008 2007
£’000 £’000 p.a. £’000 p.a. £’000 p.a.
R. G. Buck (to 31 October 2007) 46 2 1 36 35
L. R. Murray (to 31 May 2008) 55 10 6 87 81
J. W. P . Nicholson+ 43 7 3 40 37
D. R. R. Pochin 43 6 3 36 33
D. Shaw+ 57 12 3 121 118
+ Includes benefits transferred in from previous pension arrangements.
Share options
The group intends to grant options periodically to key executives so as to provide an incentive to perform strongly over an
extended period and so align their interests with those of shareholders. Under the terms of the Pochin’s PLC Executive Share
Option Scheme, options granted can only be exercisable between three and ten years of the date of grant and only then if the
conditions for exercise, set by the Remuneration Committee, have been met. Options have been granted to eligible directors of
the company, as follows:
Directors’ share options
Granted on Granted on Granted on Granted on Held at Granted on Held at
12 December 16 November 19 December 2 November 1 June 26 October 31 May
2003 2004 2005 2006 2007 2007 2008
(Option price (Option price  (Option price (Option price (Option price
197p) 200p) 372p) 330p) 309p)
R. G. Buck 
(to 31 October 2007) – 5,000 4,000 5,000 14,000 – 14,000
J. Edwards – – 10,000 5,000 15,000 5,000 20,000
L. R. Murray
(to 31 May 2008) 9,000 10,000 6,000 5,000 30,000 5,000 35,000
J. W. P . Nicholson 9,000 5,000 4,000 5,000 23,000 5,000 28,000
D. R. R. Pochin 4,500 9,500 4,000 5,000 23,000 5,000 28,000
D. Shaw 9,000 17,000 7,500 10,000 43,500 10,000 53,500
Notes:
1. All options are granted for nil consideration on grant and are in respect of 25p ordinary shares of Pochin’s plc.
2. No options lapsed or were waived in the year.
3. Details of share price movements in the year are listed on page 81, Shareholder Information.
4. No options were exercised in the year.
5. All options granted in 2002 have been exercised.
6. Options granted to R. G. Buck in 2003 have been exercised.
7. R. G. Buck and L. R. Murray remain members of the scheme, but no further grants will be made.
Signed on behalf of the board
Nicholas Fry
Chairman of the Remuneration Committee
22 September 2008 Page 27
Directors’ Report
The directors have pleasure in presenting their annual report and the audited financial statements for the year ended 31 May
2008.
Principal activities of the group and business review
The group operates within the United Kingdom and continues to be principally engaged in building and civil engineering
contracting, property development and letting, house building and specialist plant hire. The directors have classified these
activities into four separate segments, contracting, property, residential and construction services. A review of existing activities
and future developments is contained in the Chairman’s Statement and the Chief Executive’s Report.
The information that fulfils the requirements of the business review can be found in the Chief Executive’s Report, the Financial
Review, Corporate Social Responsibility, Corporate Governance and in the notes to the financial statements. These include the
key performance indicators (KPIs) of the group and the risks facing the group. The group monitors the KPIs in order to generate
value for shareholders and to improve business performance. They include, earnings per share, net assets per share, the
number and price of contracts, forward sales, utilisation, landbank, average selling price and customer satisfaction.
Directors
The board of directors is shown on page 16.
Results and dividends
The results for the year are set out in the consolidated income statement on page 33.
An interim dividend of 3.0p (2007: 3.0p) per share amounting to £624,000 (2007: £624,000) was paid on 7 April 2008 (7 April
2007). The directors recommend a final dividend of 3.0p (2007: 6.25p) per share amounting to £624,000 (2007: £1,300,000).
The total dividend is 6.0p per share (2007: 9.25p), which amounts to £1,248,000 (2007: £1,924,000).
Donations
Charitable donations during the year amounted to £20,000 (2007: £24,000).
Acquisition of the company’s own shares
At the AGM held on 26 October 2007, the company passed a resolution giving the company the authority to enter into
contracts for the purchase of not more than 3,119,980 ordinary shares. The company has not entered into any contracts during
the year to purchase its own shares and has not entered into any to the date of this report. The authority expires at the
conclusion of this year’s AGM and the directors will seek to renew the authority for a further year at that meeting. Shares
purchased in accordance with the authority will either be cancelled or held in treasury to help the company meet its obligations
under the employee share trust.
Employee share trust
The company established an employee share trust ("the Trust") following approval by the shareholders at the AGM held on 16
November 2001. At 31 May 2008, the Trust owned 445,000 ordinary shares. Options of 60,254 were granted during the year
under the approved scheme and options of 38,246 were granted during the year under the unapproved scheme. A total of
4,500 options were exercised during the year, leaving a total of 399,000 options in issue.  
Transactions involving directors
No contracts significant to the group's business subsisted during the year in which any director of the company had a material
interest.
  Page 28
Directors’ Report
Directors’ interests
As at the beginning and the end of the year respectively, the directors of the company who served throughout the year had the
following interests in the ordinary share capital of the company:
Number of 25p ordinary shares held at:
31 May 2008 1 June 2007
Note Beneficial Non-beneficial Beneficial Non-beneficial
interests interests interests interests
M. Chadwick  3 14,000 4,775,164 1,972,780 2,591,384
J. Edwards  2 –– ––
R. Fildes 6,500 – 6,500 –
N. R. L. Fry  –– ––
J. W. P . Nicholson  1, 2 & 4 651,945 8,700 494,545 8,700
S. E. Nicholson  1 123,600 – 881,060 –
D. R. R. Pochin  1 & 2 2,250 – 6,000 –
D. Shaw  2 21,500 – 21,500 –  
Notes:
1. In addition to the above referred personal holdings, Mrs. S. E. Nicholson, Mr. J. W. P. Nicholson and Mr. D. R. R. Pochin
are also deemed interested in concert party holdings, as referred in the explanatory notes to the Substantial shareholdings
(see page 29).
2. Mr. D. Shaw, Mr. J. Edwards, Mr. J. W. P. Nicholson and Mr. D. R. R. Pochin are all eligible for the executive share option
scheme. In addition to the holdings stated above, as at 31 May 2008, each hold options in ordinary shares in the company
(see page 26).
3. Included in Mr. M. Chadwick’s non-beneficial holding in the company is the holding of Quiros Limited as reported under
Substantial shareholdings (see page 29).
4. Included in Mr. J. W. P. Nicholson’s beneficial holding in the company is the holding of his children under the Darling 8
Discretionary Settlement, of which he is a trustee. The Darling 8 Discretionary Settlement holds 157,400 ordinary shares in
the company.  
5. At the date of his resignation on 31 October 2007, Mr. R. G. Buck held 24,721 ordinary shares in the company.
6. At the date of his resignation on 31 May 2008, Mr. L. R. Murray held 14,500 ordinary shares in the company.
Save as noted above, the company has not been advised of any changes in the directors’ interests between 31 May 2008 and
the date of this report.
Statement of directors’ responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law
and regulations. Company law in the United Kingdom requires directors to prepare financial statements for each financial year,
in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, which give a true and fair view of
the state of affairs of the company and the group, and of the profit or loss of the group for the year. In preparing those financial
statements, the directors confirm that they have:
• selected appropriate accounting policies and then applied them consistently.
• made judgments and estimates that are reasonable and prudent.
• followed applicable IFRS, subject to any material departures disclosed and explained in the financial statements. 
• prepared the financial statements on the going concern basis.
The directors are responsible for maintaining proper accounting records, for safeguarding the assets of the group and for taking
reasonable steps for the prevention and detection of fraud and other irregularities. The directors are also responsible for the
preparation of the directors’ report and other information in the annual report. In so far as the directors are aware, there is no
relevant audit information of which the company’s auditors are unaware, and the directors have taken all steps that they ought
to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of this
information.  Page 29
Directors’ Report
To the best of the directors’ knowledge:
• the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view
of the assets, liabilities, financial position and profit or loss of the company and the undertakings included in the
consolidation taken as a whole; and
• the management report includes a fair review of the development and performance of the business and the position of the
company and the undertaking included in the consolidation taken as a whole, together with a description of the principal
risks and uncertainties that they face.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the
company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
Directors’ indemnity
The company has purchased and maintained throughout the year directors’ and officers’ liability insurance in respect of its
directors. The directors also have the benefit of the indemnity provision contained in the Articles against liabilities incurred by
them in the course of carrying out their duties or the exercise of their powers.
Substantial shareholdings
The directors have been advised of the following individual interests and groups of interests, held by persons acting together,
and excluding directors’ shareholdings set out above, which at 31 May 2008 exceed 3% of the ordinary share capital of the
company.
Number of 25p ordinary shares held at 31 May 2008
Beneficial Non-beneficial
Note interests interests %
Mr. I. C. N. Toole and
Key Trust Company Limited 1 & 3 1,542,020 – 7.4
Kettley International Limited 2 & 3 5,478,499 – 26.3
Mrs. R. E. Pochin 4 503,690 274,700 3.7
Quiros Limited 4,768,364 – 22.9
Notes:
1. Mrs. S. E. Nicholson (non-executive director) and Mr. J. W. P . Nicholson (executive director) are potential beneficiaries under
a family trust (“the C.W.T. Pochin 1974 Trust”). The trustees of the C.W.T. Pochin 1974 Trust hold 1,542,020 ordinary shares,
representing 7.4% of the company’s issued shares in the company. These shares are held in the name of Mr. I. C. N. Toole
and Key Trust Company.
2. Mrs. S. E. Nicholson (non-executive director) and Mr. J. W. P . Nicholson (executive director) are potential beneficiaries under
a further family trust (“the F. Heywood 1991 Settlement”). Kettley International Limited holds 5,478,499 ordinary shares,
representing 26.3% of the issued shares in the company. Kettley International Limited is owned by the F. Heywood 1991
Settlement.  
3. The families of Mrs. S. E. Nicholson (non-executive director), Mr. J. W. P. Nicholson (executive director), together with the
C.W.T. Pochin 1974 Trust and the F. Heywood 1991 Settlement are deemed by the Panel on Takeovers and Mergers to
form the Cedric Pochin concert party and at the date of this report this concert party holds 42.1% of the issued shares in
the company.
4. The families of Mr. D. R. R. Pochin (executive director), Mrs. R. E. Pochin and Mr. N. J. Pochin (former director) are deemed
by the Panel on Takeovers and Mergers to form the Arthur Pochin concert party and at the date of this report this concert
party holds 11.5% of the issued shares in the company.
The have been no other changes in the above interests to the date of this report.
  Page 30
Directors’ Report
Employees
Information about the group and factors affecting its performance is provided to employees through the house magazine,
Pochin Post and via Pochinet, the group’s corporate intranet. In addition, arrangements for consulting and involving employees
on matters affecting their interests at work, and informing them of the performance of their employing business and the group,
are developed in ways appropriate to each business. A variety of approaches are adopted, aimed at encouraging the
involvement of employees in effective communication and consultation, and the contribution of productive ideas at all levels.
This includes the formation of a communications group in addition to the several steering committees established to promote
and implement group strategy through improvements and innovation in working practices.
The establishment and maintenance of safe working practices are of the greatest importance to the group and special training
in health and safety is provided for employees. The group has produced health and safety policies to cover all aspects of its
activities and the executive management and subsidiary directors monitor adherence to these policies. Regular reports are fed
back to the board who have ultimate responsibility for health and safety throughout the group. A copy of the group health and
safety policies can be obtained from the company secretary or can be viewed electronically on the company web site.
The group’s employment policies do not discriminate between employees, or potential employees, on the grounds of gender,
age, ethnic origin, nationality, religious belief, race or sexual orientation. It is group policy to give full and fair consideration to
the employment of disabled persons where they have the necessary abilities and skills for the position, and wherever possible
the group continues to employ persons who become disabled whilst they are with the group. The group ensures that training,
career development, and promotion opportunities for disabled persons are, as far as possible, identical to those of other
employees who are not disabled.
Further details of important issues relating to our employees are set out on page 18.
Creditor payment policy
It is the policy of the company that each of the businesses in the group should agree appropriate terms and conditions for its
transactions with suppliers and sub-contractors (by means ranging from standard written terms to individually negotiated
contracts) and that payment should be made in accordance with those terms and conditions provided that the supplier has
also complied with them. At 31 May 2008, the group had 30 days purchases (2007: 32 days) outstanding in trade creditors.
Additional information for shareholders
Following implementation of the EU Transparency Directive in the UK, the half-yearly financial results and interim management
report need no longer be sent to shareholders. It is therefore proposed that the Interim Report for the half year ending 30
November 2008 and thereafter will be published on the company’s website. In addition to the environmental benefit associated
with the reduced use of paper, this proposal will also save printing and mailing costs.
Following implementation of the EU Takeover Directive in the UK, the following description provides the required relevant
information for shareholders where not already provided elsewhere in the financial statements. This description summarises
certain provisions of the current Articles and applicable English law concerning companies (the Companies Act 1985 (as
amended) and the Companies Act 2006, together the “Companies Acts”). This is a summary only and the relevant provisions
of the Companies Acts or the Articles should be consulted if further information is required.
Share capital
The company’s issued share capital comprises 20,800,000 ordinary shares of 25p each. As at 31 May 2008, the ordinary
shares represented 100% of the issued share capital of the company.  
Rights and obligations attaching to the shares
Subject to the Companies Acts and other shareholder rights, any share may be issued with such rights and restrictions as the
company may by special resolution decide or, if no resolution has been passed or so far as the resolution does not make
specific provision, as the board may decide. 
Voting
Under and subject to the provisions of the Articles and subject to any special rights or restrictions as to voting attached to
shares, on a show of hands every member present in person shall have one vote and on a poll every member who is present
in person or by proxy shall have one vote for every share of which he is the holder. Members are entitled to appoint a proxy to
exercise all or any of their rights to attend, speak and vote on their behalf at a general meeting. Page 31
Directors’ Report
Restrictions on voting
A member shall not be entitled to vote at any general meeting in respect of any shares held by him unless all calls and other
sums presently payable by him in respect of that share have been paid. None of the shares in issue contain any special control
rights. Full details of the deadlines for exercising voting rights in respect of the resolutions to be considered at the AGM, to be
held on 24 October 2008, are set out in the Notice of AGM.
Dividends and distributions
The company may, by ordinary resolution, declare a dividend to be paid to the members but no dividend shall exceed the
amount recommended by the board. In the opinion of the board, interim dividends may be paid whenever the financial position
of the company justifies it.
Winding up
Under the Articles, if the company is in liquidation, the liquidator may, with the sanction of an extraordinary resolution of the
company and any other authority required by statute:
• divide among the members in specie any part of the assets of the company; or 
• vest any part of the assets in trustees upon such trusts for the benefit of members or any of them as the resolution shall
provide.
Transfer of shares
All the ordinary shares rank equally and subject to the restrictions in the Articles, any member may transfer all or any of his
shares by an instrument of transfer in the usual form or in any other form which the board may approve. The board may, in its
absolute discretion and without giving any reason, refuse to register any transfer of a share not fully paid up or any transfer of
a share on which the company has a lien. 
Repurchase of shares
Subject to the provisions of the Companies Acts, the Company may purchase its shares.
Amendment of Articles of Association
The Articles may be amended by a special resolution at a general meeting.
Appointment and replacement of directors
The directors shall not, unless otherwise determined by an ordinary resolution of the company, be less than three nor more than
ten in number. Directors may be appointed by the board for such period (subject to statute) and on such terms as it may decide
and may revoke or terminate any such appointment. At each AGM, any director selected to retire by rotation shall retire from
office. The company may by extraordinary resolution of which special notice has been given in accordance with the Companies
Acts, remove any director before his period of office has expired notwithstanding anything in the Articles or in any agreement
between him and the company. The office of a director shall also be vacated if:
• he is prohibited by law from being a director; or
• he becomes bankrupt or makes any agreement or composition with his creditors; or
• he becomes of unsound mind; or
• for more than six months he is absent, without special leave of absence from the board, from meetings of the board held
during that period and the board resolves that his office be vacated; or
• he serves on the company notice of his wish to resign.
Powers of the directors
The business of the company shall be managed by the board which may exercise all the powers of the company, subject to
statute, the Articles and any ordinary resolution of the company. The board may exercise all the powers of the company to
borrow money and to mortgage or charge all or any part of its undertaking, property and assets and uncalled capital and to
issue debentures and other securities, subject to the provisions of the Articles.
Significant agreements
The directors acknowledge that a number of contracts could alter in the event of a change of control. None is considered to
be significant in terms of their potential impact on the group in this event.
  Page 32
Directors’ Report
Proposed changes to the company’s Articles of Association
As indicated in last year’s Annual Report and Accounts, a review of the Articles has been undertaken to reflect the introduction
of further provisions of the Companies Act 2006 (“the Act”). The Act sets out directors’ general duties which largely codify the
existing law but with some changes. Under the Act, from 1 October 2008, a director must avoid a situation where he has, or
can have, a direct or indirect interest that conflicts, or possibly may conflict with the company’s interests. The requirement is
very broad and could apply, for example, if a director becomes a director of another company or a trustee of another
organisation. The Act allows directors of public companies to authorise conflicts and potential conflicts, where appropriate,
where the articles of association contain a provision to this effect. The Act also allows the articles of association to contain other
provisions for dealing with directors’ conflicts of interest to avoid a breach of duty. It is therefore proposed to amend the Articles
to give the directors authority to approve such situations and to include other provisions to allow conflicts of interest to be dealt
with in a similar way to the current position. It is also proposed to amend the Articles to contain provisions relating to confidential
information, attendance at board meetings and availability of board papers to protect the director being in breach of duty if a
conflict of interest or potential conflict of interest arises. These provisions will only apply where the position giving rise to a
potential conflict has previously been authorised by the directors.
The consent of shareholders is required to any changes in the Articles and, accordingly, there is proposed as Special Business
in the Notice of AGM, the text of a special resolution which is being proposed to amend the Articles to this effect.
There are safeguards which will apply when the directors decide whether to authorise a conflict or potential conflict. First, only
directors who have no interest in the matter being considered will be able to take the relevant decision, and secondly, in taking
the decision the directors must act in a way they consider, in good faith, will be most likely to promote the company’s success.
The directors will be able to impose limits or conditions when giving authorisation if they think this is appropriate.
The Notice of AGM containing details of this proposed special resolution is an important document and any shareholder who
is in any doubt as to what action to take in respect of it should consult appropriate independent advisors. In the event that
shareholders have sold or transferred shares in the capital of the company, they should pass the Notice of AGM to the person
through whom the sale or transfer was effected for transmission to the purchaser or transferee.
Information rights
Beneficial owners of shares who have been nominated by the registered holder of those shares to receive information rights
under the Act are required to direct all communication to the registered holder of their shares, rather than to the company’s
registrars, Capita Registrars, or to the company directly.
Auditors
Grant Thornton offer themselves for reappointment as independent auditors of the company and resolutions concerning their
re-appointment and fixing of their remuneration will be proposed at the AGM.
On behalf of the board
David Shaw John Edwards  
Director                                                     Director             
22 September 2008 Page 33
Consolidated income statement
For the year ended 31 May 2008
2008 2007
Notes £’000 £’000
Continuing operations
Revenue 1  115,273 116,554 
Cost of sales (106,715) (102,219)
Gross profit 8,558 14,335 
Operating expenses 2  (16,751) (10,621)
Other operating income 3  4,254 3,839 
Gains on revaluation of investment properties 2,548 707
Operating (loss)/profit (1,391) 8,260
Share of profit after taxation in joint ventures 1,863 45
Share of profit after taxation in associates 437 241 
Finance income 4 3,400 2,801 
Finance cost 4  (2,533) (2,212)
Profit before taxation 1 & 5  1,776 9,135
Taxation 8  859 (2,270)
Profit for the year from continuing operations 2,635 6,865 
Discontinued operations
Loss for the year from discontinued operations 1 – (59)
Profit for the year 2,635 6,806 
Attributable to:
Equity holders of the company 29 2,603 6,775 
Minority interest 32 31
Profit for the year 2,635 6,806 
Earnings per share (basic) 11 12.8p 33.4p 
Earnings per share (diluted) 11 12.7p 33.2p 
Earnings per share (basic) from continuing activities 11 12.8p 33.6p 
Earnings per share (diluted) from continuing activities 11  12.7p 33.4p 
Dividend proposed for the year 10 3.0p 6.25p 
  Page 34
Statements of recognised income and expense
For the year ended 31 May 2008 Group Company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
Actuarial gains/(losses) on defined benefit pension scheme 1,189 1,028 - (603)
Deferred taxation on pension scheme (surplus)/deficit (355) (310) - 181
Net income/(expense) recognised directly in equity 834 718 - (422)
Profit/(loss) for the year 2,635 6,806 (3,368) 287
Total gains/(losses) recognised since last period 3,469 7,524 (3,368) (135)
Attributable to:
Equity holders of the company 3,437 7,493 (3,368) (135)
Minority interest 32 31 – –
3,469 7,524 (3,368) (135) Page 35
Consolidated balance sheet
As at 31 May 2008
2008 2007
Notes £’000 £’000
Non current assets
Property, plant and equipment 13 3,613 4,400
Investment properties 13 46,167 41,090
Investments 14
Joint ventures 19,946 11,414
Associates 3,286 2,037
Other 2,157 2,157
Retirement benefit asset 7 861 –
Total non current assets 76,030 61,098
Current assets
Inventories 15 32,177 35,638
Trade and other receivables 17 23,542 19,030
Cash and cash equivalents 18 3,988 223
Financial derivatives 515 253
Corporation tax recoverable 35 55
Total current assets 60,257 55,199
Current liabilities
Trade and other payables 19 29,296 24,202
Bank loans 20 10,534 10,618
Bank overdrafts 20 23,918 11,409
Total current liabilities 63,748 46,229
Net current (liabilities)/assets (3,491) 8,970
Non current liabilities
Bank loans 21 12,411 9,207
Retirement benefit obligation 7 – 577
Deferred tax liabilities 24 1,374 2,413
Provisions 25 496 1,632
Other payables 26 5,204 4,757
Total non current liabilities 19,485 18,586
Net assets 53,054  51,482
Equity
Share capital 27 & 29 5,200 5,200
Own shares 29 (954) (954)
Revaluation reserve 29 178 240
Retained earnings 29 48,419 46,785
Total shareholders’ equity 29 52,843 51,271
Minority interest 29 211 211
Total equity 53,054 51,482
On behalf of the board
David Shaw Director    John Edwards Director    
22 September 2008 Page 36
Company balance sheet
As at 31 May 2008
2008 2007
Notes £’000 £’000
Non current assets
Property, plant and equipment 13 1,871 1,943
Investment properties 13 17,951 18,472
Investments 14 30,480 26,174
Total non current assets 50,302  46,589
Current assets
Trade and other receivables 17 3,532 2,086
Cash and cash equivalents 18 3,695 68
Corporation tax recoverable 1,210 1,720
Total current assets 8,437 3,874
Current liabilities
Trade and other payables 19 19,390 20,251
Bank loans 20 9,942 10,357
Bank overdrafts 20 16,300 148
Total current liabilities 45,632 30,756
Net current liabilities (37,195)  (26,882)
Non current liabilities
Bank loans 21 – 179
Retirement benefit obligation 21 – 84
Deferred tax liabilities 24 475 1,575
Provisions 25 496 500
Total non current liabilities 971 2,338
Net assets 12,136  17,369
Equity
Share capital 27 &30 5,200 5,200
Retained earnings 30 6,936 12,169
Total equity 30 12,136  17,369
On behalf of the board
David Shaw Director    John Edwards Director    
22 September 2008 Page 37
Consolidated cash flow statement
For the year ended 31 May 2008
2008 2008 2007 2007
Notes £’000 £’000 £’000 £’000
Net cash from operating activities
Profit for the year 2,635 6,806 
Loss for the year from discontinued operations - 59
Income tax (859) 2,270
Finance income (3,400) (2,801)
Finance cost 2,533 2,212
Share of results of joint ventures and associates (2,300) (286)
Depreciation charge 684 908 
Impairment of intangible assets – 323
Charge in respect of share based payments 46 41 
Profit on sale of property, plant and equipment (178) (243)
Gains on revaluation of investment properties (2,548) (707)
Provision against investments in joint ventures 4,632 1,500 
Income from joint ventures and associates 259 246 
Operating profit before changes in working capital 1,504 10,328 
Decrease/(increase) in inventories 3,461 (9,423)
(Increase)/decrease in receivables (4,774) 2,065
Increase in payables 4,612 2,714
4,803 5,684
Interest paid (1,249) (1,062)
Income taxes paid (516) (2,414)
Net cash from operating activities 3,038 2,208
Investing activities
Interest received 1,630 1,121 
Purchase of investment properties (2,529) –
Purchase of property, plant and equipment (261) (1,880)
Proceeds from sale of property, plant and equipment 542 728 
Receipt of government grants – 150 
Increase in interest in joint ventures and associates (12,372) (3,234)
Net cash used in investing activities (12,990) (3,115)
Financing activities
Proceeds from new loans 13,421 10,000 
Repayment of loans (10,302) (526)
Dividends paid (1,911) (1,872)
Net cash from financing activities 1,208 7,602 
Net (decrease)/increase in cash and cash equivalents (8,744) 6,695
Cash and cash equivalents at beginning of year (11,186) (17,881)
Cash and cash equivalents at end of year 31 (19,930) (11,186) Page 38
Company cash flow statement
For the year ended 31 May 2008
2008 2008 2007 2007
Notes £’000 £’000 £’000 £’000
Net cash from operating activities
(Loss)/profit for the year (3,368) 287
Loss for the year from discontinued activities - 500
Income tax (1,717) (404)
Finance income (368) (183)
Finance cost 1,647 898
Depreciation charge 72 73
Profit on sale of property, plant and equipment (25) (233)
Charge in respect of share based payments 46 12
Losses/(gains) on revaluation of investment properties 521 (143)
Provision against investments in joint ventures 7,500 1,500
Provision against investments in subsidiary undertakings 187 –
Operating profit before changes in working capital 4,495 2,307 
(Increase)/decrease in receivables (1,446) 3,198
Decrease in payables (948) (2,201)
2,101 3,304 
Interest paid (1,647) (898)
Income taxes received/(paid) 1,126 (261)
Net cash from operating activities 1,580 2,145 
Investing activities
Interest received 368 183
Decrease in loans to group undertakings 161 4,863
Proceeds from sale of property, plant and equipment 25 233
Increase in interest in joint ventures and associates (12,154) (3,234)
Net cash (used in)/from investing activities (11,600) 2,045 
Financing activities
Proceeds from new loans 9,635 10,000
Repayment of loans (10,229) (357)
Dividends paid (1,911) (1,872)
Net cash (used in)/from financing activities (2,505) 7,771
Net (decrease)/increase in cash and cash equivalents (12,525) 11,961 
Cash and cash equivalents at beginning of year (80) (12,041)
Cash and cash equivalents at end of year 31 (12,605) (80)  Page 39
Accounting policies
Basis of accounting
The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have
been applied consistently in dealing with items that are considered material in relation to the group’s financial statements. IFRS 7
is a new accounting standard that has been adopted in the year. The impact of this standard has been to increase the disclosure
in relation to financial instruments.
Basis of preparation
These accounts have been prepared in accordance with International Financial Reporting Standards as adopted by the European
Union and International Financial Reporting Standards as issued by the International Accounting Standards Board and with those
parts of the Companies Act 1985 applicable to companies reporting under IFRS. The accounts have been prepared under the
historical cost convention as modified by the revaluation of land and buildings, the revaluation of certain financial assets and
liabilities, share based payments and the pension surplus.
The preparation of financial statements in conformity with generally accepted accounting principles requires the use of
estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on
management's best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates:
(i) assessment of stage of completion of contracts – in assessing the allocation of revenues and costs to accounting periods,
and the consequential assets and liabilities, the group reviews the stage of completion as assessed by the contract surveyor
and the forecast outturn of the project.
(ii) valuations of investment properties are based on current market conditions, tenant occupancy and quality of leases.
Impairments in relation to investment property are considered when assessing the valuation.
(iii) impairment reviews are completed based on value in use calculations determined using anticipated future cash flows and
discount rates. In assessing potential impairments required the group considers the forecast outcome of projects.
(iv) inflation and mortality assumptions, discount rates, rates of return on assets and rates of salary and pension increases
reflected in the IAS 19 pension charge.
(v) assumptions on the expected life of share options, volatility of shares, risk free yield to maturity, and expected dividend yield
on shares used in the IFRS 2 fair value of share options.
The following new standards and interpretations are those which are in issue but not yet effective and have not been
adopted early by the group.
• IAS 1 Presentation of Financial Statements (revised 2007) – effective 1 January 2009
• IAS 23 Borrowing Costs (revised 2007) - effective 1 January 2009
• IAS 27 Consolidated and Separate Financial Statements (revised 2008) - effective 1 January 2009
• Amendment to IFRS 2 and IAS 27 - effective 1 January 2009
• IFRS 8 Operating Segments - effective 1 January 2009
There is not expected to be a significant impact on the group financial statements as a result of the above standards
becoming effective.
Basis of consolidation
The group financial statements include the accounts of Pochin’ s PLC and subsidiaries controlled by the group. Control exists where
the company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits
from its activities. In assessing control, potential voting rights that are presently exercisable are taken into account. The financial
statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the
date that control ceases. Acquisitions of subsidiaries are dealt with by the purchase method. The purchase method involves the
recognition at fair value of all identifiable assets and liabilities, including contingent liabilities of the subsidiary, at the acquisition date,
regardless of whether or not they were recorded in the financial statements of the subsidiary prior to acquisition.
Business combinations completed prior to date of transition to IFRS
The group has elected not to apply IFRS 3 Business Combinations retrospectively to business combinations prior to date of
transition, which was at 1 June 2004.
Accordingly the classification of the combination (acquisition, reserve acquisition or merger) remains unchanged from that used
under UK GAAP. Asset and liabilities are recognised at date of transition if they would be recognised under IFRS, and are
measured using their UK GAAP carrying amount immediately post-acquisition as deemed cost under IFRS, unless IFRS
requires fair value measurement. Deferred tax and minority interest are adjusted for the impact of any consequential
adjustments after taking advantage of the transitional provisions.
The transitional provisions used for past business combinations apply equally to past acquisitions of interests in associates and
joint ventures. Page 40
Accounting policies
Joint ventures and associates
Entities whose economic activities are controlled jointly by the group and by other ventures independent of the group are
accounted for using the equity method.
Joint ventures are contractual arrangements whereby the group undertakes an economic activity which is subject to joint
control with third parties. The group’s interest in joint ventures are accounted for using the equity method as des below for
associates.
Associates are those entities over which the group has significant influence but which are neither subsidiaries nor interests in
joint ventures. Investments in associates are recognised initially at cost and subsequently accounted for using the equity
method. Acquired investments in associates are also subject to purchase method accounting. However any goodwill or fair
value adjustment attributable to the share in the associate is included in the amount recognised as investment in associates.
All subsequent changes to the share of interest in the equity of the associate are recognised in the group’s carrying amount of
the investment. Changes resulting from the profit or loss generated by the associate are reported in “share of profits of
associates” in the consolidated income statement and therefore affect net results of the group. These changes include
subsequent depreciation, amortisation and impairment of the fair value adjustments of assets and liabilities.
Items that have been recognised directly in the associate’s equity are recognised in the consolidated equity of the group.
However, when the group’s share of losses in an associate equals or exceeds its interest in the associate, including any
unsecured receivables, the group does not recognise further losses, unless it has incurred obligations or made payments on
behalf of the associate. If the associate subsequently reports profits, the investor resumes recognising its share of those profits
only after its share of the profits equals the share of losses not recognised.
Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group’s interest in the
associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset
transferred. Amounts reported in the financial statements of associates have been adjusted where necessary to ensure
consistency with the accounting policies adopted by the group.
Investments
The parent company’s investment in its subsidiary undertakings, associates and joint ventures is recorded at cost.
Revenue
Revenue is measured at the fair value of the consideration received or receivable in respect of construction work executed during
the year (see below, Construction contracts), development revenue and other revenue and services as supplied, but excludes value
added tax. Development revenue is recognised on completion of contracts. Rental income, excluding value added tax, is
recognised on an accruals basis.
Goodwill
Goodwill representing the excess of the cost of acquisition over the fair value of the group’s share of the identifiable net assets
acquired, is capitalised and reviewed annually for impairment. Goodwill is carried at cost less accumulated impairment losses.
Negative goodwill is recognised immediately after the acquisition in the income statement.
Goodwill written off to reserves prior to date of transition to IFRS remains in reserves. There is no re-instatement of goodwill
that was amortised prior to transition to IFRS. Goodwill previously written off to reserves is not written back to profit or loss on
subsequent disposal.
Intangible assets
Assets acquired as part of a business combination
In accordance with IFRS 3 Business Combinations, an intangible asset acquired in a business combination is deemed to have
a cost to the group of its fair value at the acquisition date. The fair value of the intangible asset reflects market expectations
about the probability that the future economic benefits embodied in the asset will flow to the group. Where an intangible asset
might be separable, but only together with a related tangible or intangible asset, the group of assets is recognised as a single
asset separately from goodwill where the individual fair values of the assets in the group are not reliably measurable. Where the
individual fair value of the complimentary assets are reliably measurable, the group recognises them as a single asset provided
the individual assets have similar useful lives. Page 41
Accounting policies
Construction contracts
Contract revenue reflects the contract activity during the year and is measured at the fair value of consideration received or
receivable. When the outcome can be assessed reliably, contract revenue and associated costs are recognised as revenue and
expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date. The stage of
completion of the contract at the balance sheet date is assessed by reference to work done, measured by qualified quantity
surveyors.
Where the outcome of a long term contract cannot be estimated reliably, revenue is recognised only to the extent of contract
costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which
they are incurred.
In the case of a fixed price contract, the outcome of a construction contract is deemed to be estimated reliably when all the
following conditions are satisfied:
• total contract revenue can be measured reliably
• it is probable that economic benefits associated with the contract will flow to the group
• both the contract costs to complete the contract and the stage of completion at the balance sheet date can be measured
reliably, and 
• the contract costs attributable to the contract can be clearly identified and measured reliably so that actual contract costs
incurred can be compared with prior estimates.
In the case of a cost plus contract, the outcome of a construction contract can be estimated reliably when it is probable that
the economic benefits associated with the contract will flow to the group, and the contract costs attributable to the contract,
whether or not specifically reimbursable, can be clearly identified and measured reliably.
The gross amount due from customers for contract work is presented as an asset for all contracts in progress for which costs
incurred plus recognised profits (less recognised losses) exceeds progress billings. The gross amounts due to customers for
contract work is presented as a liability for all contracts in progress for which progress billings exceed costs incurred plus
recognised profits (less losses).
Full provision is made for losses on all contracts in the year in which the loss is first foreseen.
Property, plant and equipment
Property, plant and equipment is stated at acquisition cost less subsequent depreciation and impairment losses.
Depreciation is provided on the original cost of assets, in equal instalments over the assets useful economic lives. 
The following terms are generally applicable:
• freehold buildings over 40 years
• leasehold buildings over 40 years or the term of the lease if less
• plant and machinery over 3 to 8 years
• vehicles over 4 to 5 years
Freehold land is not depreciated.
Material residual value estimates are updated as required.
Borrowing costs on property, plant and equipment under construction are capitalised during the period of construction based
on specific funds borrowed.
Investment properties
Investment properties are revalued annually and are included in the balance sheet at their open market value. The surplus or deficit
resulting from either a change in the fair value or the sale of an investment property is recognised immediately in the income
statement. Page 42
Accounting policies
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the income
statement because it excludes items of income or expense that are deductible in different periods from those in which they are
recognised in the financial statements, or are never taxable or deductible. The group’s liability for current tax is calculated using tax
rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using
the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred
tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary
differences can be utilised. The carrying amount of deferred tax assets is reviewed at each balance sheet date. Such assets and
liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or other assets and liabilities
(other than in a business combination) in a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates and
interests in joint ventures, except where the group is able to control the reversal of the temporary difference and it is probable that
the temporary difference will not reverse in the foreseeable future.
Deferred tax is calculated at the tax rates enacted, or substantially enacted, at the balance sheet date. Deferred tax is charged or
credited in the income statement except when it relates to items charged or credited directly to equity, in which case the deferred
tax is also dealt with in equity.
Impairment testing of goodwill, other intangible assets and property, plant and
equipment
For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash flows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at 
a cash-generating unit level. Goodwill is allocated to those cash-generating units that are expected to benefit from synergies of
the related business combination and represent the lowest level within the group at which management monitors the related
cash flows.
Goodwill, other individual assets or cash-generating units that include goodwill, other intangible assets with an indefinite useful
life, and those intangible assets not yet available for use are tested for impairment at least annually. All other individual assets
or cash-generating units are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset’s or cash generating unit’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of fair value, reflecting market conditions less costs to sell, and value
in use based on an internal discounted cash flow evaluation. Impairment losses recognised for cash-generating units, to which
goodwill has been allocated, are credited initially to the carrying amount of goodwill. Any remaining impairment loss is charged
pro rata to the other assets in the cash generating unit. With the exception of goodwill, all assets are subsequently reassessed
for indications that an impairment loss previously recognised may no longer exist.
Leases
As Lessee
Leases are classified as finance leases where substantially all the risks and rewards of ownership are transferred to the lessee.
Finance leases are capitalised at the inception of the lease at the lower of the fair value of the leased asset and the present value
of the minimum lease payments. Lease payments are apportioned between the liability and finance charge to produce a constant
rate of interest on the finance lease balance outstanding. Assets capitalised under finance leases are depreciated over the shorter
of the useful life of the asset or the lease term and adjusted for impairment losses. The interest expense component is recognised
in the income statement.
Leases other than finance leases are classified as operating leases. Payments made under operating leases are recognised as an
expense in the income statement on a straight-line basis over the lease term. 
As Lessor
Rentals receivable under operating leases are included in revenue on a straight line basis over the lease term. Lease incentives are
spread over the term of the lease.
  Page 43
Accounting policies
Inventories
Inventories are stated at the lower of cost and net realisable value. Costs of ordinarily interchangeable items are assigned using
the first in, first out formula.
Development work in progress includes development land and buildings and is stated at the lower of cost and net realisable value.
Borrowing costs are expensed to the income statement except in circumstances where the costs are directly attributable to a
specific development, when borrowing costs are carried forward as development work in progress.
Employee benefits
Defined benefit pension scheme
The group operates a pension scheme providing benefits based on final pensionable salary. The assets of the scheme are held
separately from those of the group.
Pension scheme assets are measured using market values. Pension scheme liabilities are measured using a projected unit method
and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability. 
The surplus recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit
obligation less the fair value of scheme assets at the balance sheet date.
The increase in the present value of the liabilities of the group’s defined benefit pension scheme expected to arise from employee
service in the period is charged to the profit from operations. The expected return on the scheme’s assets and the increase during
the period in the present value of the scheme’s liabilities arising from the passage of time are included in finance income or finance
costs respectively. Actuarial gains and losses are recognised in the consolidated statement of recognised income and expense. 
Defined contribution pension scheme
The pension costs charged against profits are the contributions payable to the scheme in respect of the accounting period.
Other employee benefits
Other employee obligations, such as holiday entitlement, are held in accurals at the undiscounted amount that the group expects
to pay as a result of the unused entitlement. 
Share based payments
For equity settled share options, the services received from employees are measured by reference to the fair value of the share
options. The fair value is calculated at grant date and recognised in the income statement, together with a corresponding increase
in shareholders’ equity, on a straight line basis over the vesting period, based on an estimate of the number of options that will
eventually vest. Vesting conditions, other than market conditions, are not taken into account when estimating the fair value.
IFRS 2 has been applied, in accordance with IFRS 1, to equity settled share options granted on or after 7 November 2002 and
not vested at 1 January 2005.
Financial instruments
Financial Assets
Financial assets, other than hedging instruments, are divided into the following categories: loans and receivables, financial
assets at fair value through profit or loss, and available-for-sale financial assets. Financial assets are assigned to the different
categories by management on initial recognition, depending on the purpose for which the investments were acquired. 
The designation of financial assets is re-evaluated at every reporting date at which a choice of classification or accounting
treatment is available.
All financial assets are recognised when the group becomes a party to the contractual provisions of the instrument. All financial
assets are initially recognised at fair value, plus transaction costs, unless they are classified as at fair value through profit or loss.
Financial assets classified as at fair value through profit or loss are initially recognised at fair value.
Derecognition of financial assets occurs when the rights to receive cash flows from the investments expire or are transferred
and substantially all of the risks and rewards of ownership have been transferred. An assessment for impairment is undertaken
at least at each balance sheet date. Regular way purchases and sales are accounted for on settlement date. 
Interest and other cash flows resulting from holding financial assets are recognised in the income statement using the effective
interest method in accordance with IAS 39. Page 44
Accounting policies
Financial instruments (continued)
Available-for-sale financial assets include non-derivative financial assets that are either designated as such or do not qualify for
inclusion in any of the other categories of financial assets. All financial assets within this category are subsequently measured
at fair value, with changes in value recognised in equity, net of any effects arising from income taxes. Gains and losses arising
from securities classified as available-for-sale are recognised in the income statement when they are sold or when the
investment is impaired.
In the case of impairment of available-for-sale assets, any loss previously recognised in equity is transferred to the income
statement. Impairment losses recognised in the income statement on equity instruments are not reversed through the income
statement. Impairment losses recognised previously on debt securities are reversed through the income statement when
appropriate.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market. They arise when the group provides money, goods or services directly to a debtor with no intention of trading the
receivables. Loans and receivables are subsequently measured at amortised cost using the effective interest method, less
provision for impairment. Any change in their value through impairment or reversal of impairment is recognised in the income
statement.
Provision against trade receivables is made when objective evidence is received that the group will not be able to collect all
amounts due to it in accordance with the original terms of those receivables. The amount of the write-down is determined as
the difference between the asset’s carrying amount and the present value of estimated future cash flows. 
Financial Liabilities
Financial liabilities are obligations to pay cash or other financial instruments and are recognised when the group becomes a
party to the contractual provisions of the instrument. All interest-related charges are recognised as an expense in “finance cost”
in the income statement. Bank loans are raised for support of long term funding of the group’s operations. They are recognised
initially at fair value (net of transaction costs) and subsequently at amortised cost using the effective interest method. Finance
charges, including premiums payable on settlement or redemption, and direct issue costs are charged to the income statement
(where they are not capitalised in development work in progress or non current assets) on an accruals basis using the effective
interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in
which they arise.
Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest
rate method.
Dividend distributions payable to the equity shareholders are included in “other short term financial liabilities” when the dividends
are approved in general meeting prior to the balance sheet date.
Interest rate swap
Derivative financial instruments are used by the group to manage its interest exposures. Derivatives are initially recognised at fair
value on the date the derivative contract is entered into and are also subsequently carried at fair value. Changes in fair value of
derivatives are recognised immediately in the income statement. 
Cash and cash equivalents
For the purposes of the cashflow statement, cash and cash equivalents comprise deposits with banks, bank and cash balances
and liquid investments net of bank overdrafts. In the balance sheet, bank overdrafts are included in current borrowings.
Bank borrowings
Interest bearing bank loans and overdrafts are initially measured at fair value, and are subsequently measured at amortised cost,
using the effective interest rate method. Any difference between the fair value on initial recognition (net of transaction costs) and
the settlement or redemption of borrowings is recognised over the term of the borrowings.
Government grants
Government grants received on the construction of investment properties are reflected as deferred income and will be released to
the income statement on the eventual disposal of the properties.
Employee share trust
The assets and liabilities of the trust have been reflected in the group accounts with a deduction to equity in respect of own shares
held. Page 45
Notes to the financial statements
1. Segmental information
For management purposes, the group is currently organised into four operating business segments:
Contracting, Property, Residential and Construction Services.
As operations are carried out entirely within the UK, there is no secondary segmental information.
Inter segmental pricing is done on an arms length open market basis.
Segment information about these businesses is presented below.
Year ended 31 May 2008
Continuing operations
Contracting Property Residential Construction Group Group
Services management Total
£’000 £’000 £’000 £’000 £’000 £’000
Revenue
External sales 82,239 10,250 8,123 14,661 – 115,273
Inter-segment sales 2,524 – – 915 – 3,439
Eliminations (2,524) – – (915) – (3,439)
Total revenue 82,239 10,250 8,123 14,661 – 115,273
Segment result
Operating profit/(loss) 179 1,279 (1,581) 255 (1,523) (1,391)
Share of results of joint ventures 
and associates – 2,300 – – – 2,300
Net finance income 129 697 3 4 34 867 
Profit/(loss) before taxation 308 4,276 (1,578) 259 (1,489) 1,776
Taxation 859
Profit for the year from continuing operations 2,635 
  Page 46
Notes to the financial statements
1. Segmental information (continued)
Year ended 31 May 2008 (continued)
Elimination of
Contracting Property Residential Construction inter-segment Group
Services items Total
£’000 £’000 £’000 £’000 £’000 £’000
Assets and liabilities
Segment assets 29,590 89,138 7,933 7,704 (21,310) 113,055
Investment in equity accounted 
joint ventures and associates – 23,232 – – – 23,232
Total assets 29,590 112,370 7,933 7,704 (21,310) 136,287
Segment liabilities 23,307 71,298 8,384 1,554 (21,310) 83,233
Net assets/(liabilities) 6,283 41,072 (451) 6,150 – 53,054
Other information
Capital expenditure 74 2,529 – 187 – 2,790
Depreciation 78 91 – 515 – 684
Provision against investment 
in joint ventures – 4,632 – – – 4,632
Impairment of inventories – – 583 – – 583
Year ended 31 May 2007
Continuing operations
Contracting Property Residential Construction Group Group
Services management Total
£’000 £’000 £’000 £’000 £’000 £’000
Revenue
External sales 82,755 8,613 11,004 14,182 – 116,554
Inter-segment sales 1,201 – – 928 – 2,129
Eliminations (1,201) – – (928) – (2,129)
Total revenue 82,755  8,613 11,004 14,182 – 116,554
Segment result
Operating profit/(loss) 2,108 6,468 752 154 (1,222) 8,260
Share of results of 
joint ventures and associates – 286 – – – 286
Net finance income/(cost) – 658 – (69) – 589
Profit/(loss) before taxation 2,108 7,412 752 85 (1,222) 9,135
Taxation (2,270)
Profit for the year from continuing operations 6,865 
  Page 47
Notes to the financial statements
1. Segmental information (continued)
Year ended 31 May 2007 (continued)
Discontinued operations
Contracting Property Residential Construction Group Group
Services management Total
£’000 £’000 £’000 £’000 £’000 £’000
Segment result
Operating loss – – – (534) – (534)
Taxation 475
Loss for the year from discontinued operations (59)
Assets and liabilities
Elimination of
Contracting Property Residential Construction inter-segment Group
Services items Total
£’000 £’000 £’000 £’000 £’000 £’000
Segment assets 25,553 90,865 11,789 7,797 (33,158) 102,846
Investment in equity accounted 
joint ventures and associates – 13,451 – – – 13,451
Total assets 25,553 104,316 11,789 7,797 (33,158) 116,297
Segment liabilities 19,946 64,808 11,205 2,014 (33,158) 64,815
Net assets 5,607 39,508 584 5,783 – 51,482
Other information
Capital expenditure 331 1,253 – 296 – 1,880
Depreciation 78 93 – 737 – 908
Provision against investment 
in joint ventures – 1,500 – – – 1,500
Impairment of inventories – 207 – – – 207  
Impairment of intangible assets – – – 323 – 323 
Details of the group’s activities are included in the Chief Executive’s Report on page 4.
2. Operating expenses
2008 2007
£’000 £’000
Operating expenses:
Distribution costs 1,653 1,618
Administrative expenses 15,098 9,003
16,751 10,621 Page 48
Notes to the financial statements
3. Other operating income
2008 2007
£’000 £’000
Income from property rentals 4,076 3,596
Profit on disposal of land and buildings 25 233
Profit on disposal of plant and equipment 153 10
4,254 3,839
4. Finance income/(cost)
2008 2007
£’000 £’000
Other interest receivable and similar income 1,630 1,121
Fair value gains - interest rate swaps 262 427
Expected return on pension scheme assets 1,508 1,253
Finance income 3,400 2,801
On bank loans and overdrafts (1,255) (1,062)
Interest on pension scheme liabilities (1,278) (1,150)
Finance cost (2,533) (2,212)
5. Profit before taxation 
Profit before taxation is stated after charging or crediting:
2008 2007
£’000 £’000
Share based payment charge 46 41
Hire of plant and machinery 909 796
Operating leases:
Property 114 115
Plant and machinery 2,840 2,609
Auditors’ remuneration for audit 34 13
Depreciation of property, plant and equipment:
Owned assets 684 908
Impairment of intangible assets – 323
Profit on sales of:
Property (25) (233)
Plant, machinery and vehicles (153) (10)
Operating costs relating to investment properties 1,502 1,430
Inventories recognised as expense 96,540 90,407
Write down of inventories 583 207
Remuneration of the auditors for the provision of non-audit services was £122,000 (2007: £119,000) being taxation fees of
£41,000 (2007: £38,000), and other services of £81,000 (2007: £81,000). Page 49
Notes to the financial statements
6. Directors and employees 
The average monthly number of persons (including directors) employed by the group during the year was:
2008 2007
Contracting 158 147
Property 9 7
Residential 26 23
Construction Services 189 190
Administration/group 47 58
Continuing operations 429 425
Discontinued operations – –
429 425
Employee costs during the year were:
2008 2007
£’000 £’000
Wages and salaries 15,610 14,374
Social security cost 1,446 1,317
Other pension costs (see note 7) 641 1,361
17,697 17,052
There were no persons employed by the company during the year (2007: nil).
Directors’ emoluments:
The directors’ remuneration report appears on pages 22 to 26 and provides additional information on directors’ emoluments,
pensions and share options. 
2008 2007
£’000 £’000
Aggregate emoluments 1,340 1,230
Aggregate gains made on exercise of share options – 90
A charge of £14,000 (2007: £14,000) has been made in respect of share based payment awards to directors.
During the year, five directors (2007: five directors) participated in the group’s defined benefit pension scheme. Retirement benefits
accruing to five directors at 31 May 2008 (2007: five directors) are set out in the directors’ remuneration report.
During the year, one director (2007: one director) participated in the group’s defined contribution scheme.
7. Pension costs
The company sponsors the Pochin’s and Associated Companies Retirement Benefits Plan which operates a defined benefit
scheme and a defined contribution scheme. The defined contribution scheme was established on 1 July 2002 and has been
available to new members from that date. 
The defined benefit scheme was closed to new members on 31 December 2001. The last full actuarial valuation of this scheme
was carried out by a qualified independent actuary as at 1 July 2005 and updated on an approximate basis to 31 May 2008.
The ordinary contributions made by the employer over the financial year have been equivalent to 16% of pensionable pay. 
These contributions total £403,000 (2007 £431,000) plus a special contribution of £nil (2007: £738,000). The ordinary contribution
rate of 16% is to continue until reviewed following the triennial valuation of the scheme due as at 1 July 2008.
It is the policy of the group to recognise all actuarial gains and losses in the year in which they occur outside the Income Statement
and in the Statement of Recognised Income and Expense.
For the year ending 31 May 2008, the group has allocated 14.0% of the total pension surplus to the company (2007: 14.5%).
  Page 50
Notes to the financial statements
7. Pension costs (continued)
The following disclosures are in respect of the group:
Assumptions 
The assets of the scheme have been taken at market value and the liabilities have been calculated using the following principal
actuarial assumptions:
2008 2007
Inflation 3.6% p.a. 3.2% p.a.
Salary increases 3.6% p.a. 3.2% p.a.
Rate of discount 6.5% p.a. 5.7% p.a.
Pension in payment increases (post April 1997 benefits)* 3.5% p.a. 3.2% p.a.
Revaluation rate for deferred pensioners** 3.6% p.a. 3.2% p.a.
Expected return on plan assets 4.0% p.a. 15.6% p.a.
* no allowance has been made for future discretionary increases on pre April 1997 benefits.
** a number of benefit changes were introduced with effect from 1 November 2006. One of those changes was a limitation on
future increases to pensionable salary which can no longer exceed the rate of inflation.
The mortality assumptions adopted at 31 May 2008 imply the following life expectancies at age 65:
Male currently age 40 24.9 years
Female currently age 40 27.3 years
Male currently age 65 22.9 years
Female currently age 65 25.4 years
The amounts recognised in the balance sheet are:
2008 2007
£’000 £’000
Assets 22,719 21,874
Liabilities (21,858) (22,451)
Surplus/(deficit) in scheme 861 (577)
The major categories of the schemes’ assets are as follows:
Equities 14,066 15,663
Bonds 7,400 4,863
Property 1,091 –
Cash 162 1,348
22,719 21,874
Expected long term rate of return
To develop the expected long term rate of return on assets assumption, the group considered market expectations at the
beginning of the period for returns over the entire life of the benefit obligation.
2008 2007
Equities 8.4% p.a. 7.5% p.a.
Bonds 5.75% p.a. 5.2% p.a.
Property 8.4% p.a. –
Cash 5.0% p.a. 5.5% p.a.
The expected long term return on cash is equal to bank base rates at the balance sheet date. The expected return on bonds is
determined by reference to UK long dated gilt and bond yields at the balance sheet date. The expected rate of return on equities
and property have been determined by setting an appropriate risk premium above gilt/bond yields having regard to market
conditions at the balance sheet date. Page 51
Notes to the financial statements
7. Pension costs (continued)
The amounts recognised in the income statement are as follows:
2008 2007
£’000 £’000
Operating profit
Current service cost 384 550
Total operating charge 384 550
Other finance (income)/cost
Expected return on pension scheme assets (1,508) (1,253)
Interest on pension scheme liabilities 1,278 1,150
Curtailments (included within operating expenses) – (2,852)
Net return (230) (2,955)
Total 154 (2,405)
Of the charge for the year, current and past service costs have been included in administrative expenses and interest costs net of
expected returns on scheme assets have been included in finance costs. Actuarial gains and losses have been included in the
statement of recognised income and expense.
The amounts included within the statement of recognised income and expense are as follows:
2008 2007
£’000 £’000
Difference between expected and actual return on scheme assets 632 (1,659)
Experience gains and losses arising on the scheme liabilities – 246
Effects of changes in the demographic and financial assumptions underlying the 
present value of the scheme liabilities (1,821) 385
Total actuarial gain (1,189) (1,028)
The total contribution expected to be paid during the year ending 31 May 2009 is £400,000.
Pension contributions to the defined contribution pension scheme in the year were £238,000 (2007: £192,000).  Page 52
Notes to the financial statements
7. Pension costs (continued)
Reconciliation of opening and closing balances of the fair value of plan assets: 
2008 2007
£’000 £’000
Fair value of assets at start of year 21,874 18,455
Expected return on assets 1,508 1,253
Actuarial (losses)/gains (632) 1,659
Contributions by employer 403 1,169
Contributions by plan participants 174 174
Benefits paid, death in service insurance premiums and expenses (608) (836)
Fair value of assets at end of year 22,719 21,874
Cumulative actuarial gains and losses recognised in equity: 
2008 2007
£’000 £’000
Actuarial (gain)/loss at 1 June (1,028) 834
Net actuarial gain recognised in the year (161) (1,862)
Actuarial gain at 31 May (1,189) (1,028)
Reconciliation of opening and closing balances of the present value of the defined benefit obligation: 
2008 2007
£’000 £’000
Defined benefit obligation at 1 June 22,451 23,634
Current service cost 384 550
Interest cost 1,278 1,150
Contributions by plan participants 174 174
Actuarial (gains)/losses (1,821) 631
Benefit paid, death in service insurance premiums and expenses (608) (836)*
Past service costs – –
Curtailments – (2,852)**
Defined benefit obligation at 31 May 21,858 22,451
* This excludes an insured death-in service lump sum payment of £101,000.
** A number of benefit changes were introduced with effect from 1 November 2006. Whilst these changes largely related to future
accruals of benefit, the limitation on future increases to pensionable salary (which can no longer exceed inflation) has also
impacted on the value of past service rights.
History of experience gains and losses:
2008 2007 2006
Difference between expected and actual return on scheme assets:
Amount £’000 (632) (1,659) (1,028)
Percentage of scheme assets 2.8% 7.6% 5.6%
Experience gains and losses on scheme liabilities:
Amount £’000 – 246 876
Percentage of present value of the scheme liabilities – 1.1% 3.7%
Present value of scheme liabilities £’000 21,858 22,451 23,634
Fair value of scheme assets £’000 22,719 21,874 18,455
Surplus/(deficit) £’000 861 (577) (5,179)
  Page 53
Notes to the financial statements
8. Taxation
2008 2007
£’000 £’000
The tax (credit)/charge is based on the profit for the year and comprises:
United Kingdom corporation tax at 29.67% (2007: 30%) 569 1,948
Adjustments in respect of prior years (33) (834)
536 1,114
Deferred tax on continuing operations (1,835) (50)
Deferred tax on revaluations 319 (146)
Deferred tax on pension liabilities 75 1,072
Deferred tax on fair value of share options (22) 152
Deferred tax on fair value of interest rate swap 167 128
Effect of movement in tax rate in year on deferred tax (99) –
Total tax (credit)/charge for the year (859) 2,270
The tax assessed for the period is lower than the standard rate of corporation tax in the United Kingdom. 
The differences are explained below:
2008 2007
£’000 £’000
Profit before taxation 1,776 9,135
Profit before taxation multiplied by the standard rate of
corporation tax in the United Kingdom of 29.67% (2007: 30%) 527 2,741
Effects of:
Expenses not deductible for tax purposes 417 563
Impact of write down of investments 264 600
Non taxable income in period (1,420) (730)
Adjustments to tax charge in respect of previous years (33) (834)
Release of deferred tax on properties qualifying for industrial building allowances (614) –
Capital loss crystallised in the year – (70)
Total tax (credit)/charge for the year (859) 2,270
9. Profit/loss for the year
In accordance with the provisions of section 230(3) of the Companies Act 1985 a separate income statement for Pochin’s PLC is
not presented.
The loss in the company for the year is £3,368,000 (2007: £287,000 profit).
  Page 54
Notes to the financial statements
10. Dividends
2008 2007
£’000 £’000
Interim paid 3.0p per share (2007: 3.0p) 611 624
Final paid 6.25p per share (2007: 6.0p) 1,300 1,248
1,911 1,872
The directors are proposing a final dividend in respect of the financial year ending 31 May 2008 of 3.0p per share, amounting to
£624,000 in total. It will be paid on 31 October 2008 to shareholders who are on the register of members on 3 October 2008. The
final dividend has not been included as a liability as at 31 May 2008.
11. Earnings per share
The calculation of earnings per share (basic and diluted) is based on group profit after taxation and minority interests of £2,603,000
(2007: £6,775,000) and the 20,800,000 ordinary shares of 25p in issue at 31 May 2008 and 31 May 2007. The number of shares
used in the calculation has been reduced at 31 May 2008 for the 445,000, (2007: 449,500) shares held in the Employee Share
Trust. Basic earnings per share is 12.8p (2007: 33.4p). The assumed conversion of dilutive options increases the number of shares
by 95,000 (2007: 118,000) shares and so diluted earnings per share reduces to 12.7p (2007: 33.2p).
2008 2007
Weighted average Weighted average
Earnings no. of shares Per share Earnings no. of shares Per share
£’000 ’000 p £’000 ’000 p
Basic EPS 2,603 20,353 12.8 6,775 20,313 33.4 
Effect of share options – 95 (0.1) – 118 (0.2)
Diluted EPS 2,603 20,448 12.7 6,775 20,431 33.2
The calculation of earnings per share (basic and diluted) for the group’s continuing and discontinued operations is set out below:
Continuing operations
2008 2007
Weighted average Weighted average
Earnings no. of shares Per share Earnings no. of shares Per share
£’000 ’000 p £’000 ’000 p
Basic EPS 2,603 20,353 12.8 6,834 20,313 33.6
Effect of share options – 95 (0.1) – 118 (0.2)
Diluted EPS 2,603 20,448 12.7 6,834 20,431 33.4
Discontinued operations
2008 2007
Weighted average Weighted average
Earnings no. of shares Per share Earnings no. of shares Per share
£’000 ’000 p £’000 ’000 p
Basic EPS –– – (59) 20,313 (0.2)
Effect of share options –– – – 118 –
Diluted EPS –– – (59) 20,431 (0.2)
  Page 55
Notes to the financial statements
12. Intangible assets
Group 
Customer
Goodwill  lists and
on consolidation relationships Total
£’000 £’000 £’000
Cost
At 1 June 2006, 2007 and 31 May 2008 483 645 1,128
Aggregate impairment
At 1 June 2006 483 322 805
Impairment for the year (charged to administrative expenses) – 323 323
At 31 May 2007 and 31 May 2008 483 645 1,128
Net book value
At 31 May 2008 –– –
At 31 May 2007 – 323 323
  Page 56
Notes to the financial statements
13. Property, plant and equipment and investment properties
Group
Plant, 
Land and Assets under     machinery Investment
buildings construction   and vehicles Total properties
£’000 £’000 £’000 £’000 £’000
Cost or valuation
At 1 June 2006 3,072 4,440 8,970           16,482 34,923
Additions –1,2556251,880–
Surplus on revaluation – – – – 536
Reclassifications – (5,695) – (5,695) 5,695
Disposals – – (1,296) (1,296) (64)
At 31 May 2007 3,072 – 8,299 11,371 41,090
Additions ––2612613
Transfer from development work in progress – – – – 2,526
Surplus on revaluation – – – – 2,548
Disposals ––(1,122)(1,122)–
At 31 May 2008 3,072 – 7,438 10,510 46,167
Depreciation 
At 1 June 2006 1,056 – 5,882 6,938 –
Charge for the year 72 – 836 908 –
Disposals ––(875)(875)–
At 31 May 2007 1,128 – 5,843 6,971 –
Charge for the year 72 – 612 684 –
Disposals ––(758)(758)–
At 31 May 2008 1,200 – 5,697 6,897 –
Net book value
At 31 May 2008 1,872 – 1,741 3,613 46,167
At 31 May 2007 1,944 – 2,456 4,400 41,090
No borrowing costs were capitalised in the year.
The gross amount of buildings on which depreciation is being provided is shown in the table below. Depreciation is not provided
on land or assets in the course of construction, the gross amounts of which were £194,000 and £nil respectively.
£’000
Freehold buildings 2,858
Long leasehold 20
2,878 Page 57
Notes to the financial statements
13. Property, plant and equipment and investment properties (continued)
Group (continued)
The figures stated above for cost or valuation include valuations as follows:
Investment
properties
£’000
At cost 2,474
At valuation:
2005 19,963
2007 450
2008 23,280
46,167
Investment properties amounting to £23,730,000 are included at directors’ valuation at 31 May 2008. The basis of the valuations
was open market value using known occupancy and rental yields. In respect of the independent professional valuations carried
out in 2005, the directors consider that these valuations remain appropriate. Investment properties at cost relate to buildings
recently completed but not yet fully tenanted. In respect of investment properties stated at cost, the directors consider that their
estimate of value is not materially different.
Company
Land and Investment
buildings properties Total
£’000 £’000 £’000
Cost or valuation
At 1 June 2006 3,072 18,329 21,401
Surplus on revaluation – 143 143
At 31 May 2007 3,072 18,472 21,544
Deficit on revaluation – (521) (521)
At 31 May 2008 3,072 17,951 21,023
Depreciation 
At 1 June 2006 1,056 – 1,056
Charge for the year 73 – 73
At 31 May 2007 1,129 – 1,129
Charge for the year 72 – 72
At 31 May 2008 1,201 – 1,201
Net book value
At 31 May 2008 1,871 17,951 19,822
At 31 May 2007 1,943 18,472 20,415
The carrying value of land not depreciated is £194,000.   
  Page 58
Notes to the financial statements
13. Property, plant and equipment and investment properties (continued)
The figures stated above for investment properties cost or valuation include valuations as follows:
£’000
Cost 2,474
At valuation:
2005 2,930
2007 450
2008 12,097
17,951
Investment properties amounting to £12,547,000 are included at directors’ valuation at 31 May 2008. The basis of the valuations
was open market value. In respect of the independent professional valuations carried out in 2005, the directors consider that these
valuations remain appropriate.
If investment properties had not been revalued they would have been included on the historical cost basis of accounting at the
following amounts:
£’000
Cost at 31 May 2008 12,185
Cost at 31 May 2007 12,185
Details of security held over investment properties is disclosed in note 22 to the financial statements.
14. Investments
Group
2008 2007
£’000 £’000
Interests in joint ventures 19,946 11,414
Interests in associates 3,286 2,037
Interests in joint ventures and associates 23,232 13,451
Available for sale financial assets 2,157 2,157
25,389 15,608
Company
Interests in joint ventures 16,903 13,286
Interests in associates 2,763 1,726
Interests in joint ventures and associates 19,666 15,012
Interests in group undertakings 8,657 9,005
28,323 24,017
Available for sale financial assets 2,157 2,157
30,480 26,174 Page 59
Notes to the financial statements
14. Investments (continued)
Group
Interests in Loans to Loans to Interests in
joint ventures   joint ventures associates      associates Total
£’000 £’000 £’000 £’000 £’000
Cost
At 1 June 2006 3,217 9,052 2,105 273 14,647
Additions 3,000 926 – – 3,926
Disposals (25) (95) – – (120)
Repayments (43) (313) (379) (203) (938)
Share of revaluation 171 – – – 171
Share of profits 45 – – 241 286
At 31 May 2007 6,365 9,570 1,726 311 17,972
Additions 2,002 9,333 1,161 498 12,994
Repayments (34) – (622) (225) (881)
Share of profits 1,863 – – 437 2,300
At 31 May 2008 10,196 18,903 2,265 1,021 32,385
Amounts written off
At 1 June 2006 1,104 2,037 – – 3,141
Charge for the year 
(charged to administrative expenses) 1,500 – – – 1,500
Disposals (25) (95) –  –              (120)
At 31 May 2007 2,579 1,942 – – 4,521
Charge for the year
(charged to administrative expenses) 3,136 1,496 – – 4,632
At 31 May 2008 5,715 3,438 – – 9,153
Net book value
At 31 May 2008 4,481 15,465 2,265 1,021 23,232
At 31 May 2007 3,786 7,628 1,726 311 13,451
Details of loans to joint ventures and associates are set out in note 35 on page 76.
The amounts written off joint ventures during the year relate to impairments. These impairments have arisen based on the
group’s assessment of the expected outcome of projects within the joint ventures. Page 60
Notes to the financial statements
14. Investments (continued)
Company
Shares Loans
in group to group Interests in Loans to Interests in Loans to
undertakings undertakings joint ventures joint ventures associates associates Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Cost
At 31 May 2007 8,094 5,774 5,367 9,051 – 2,105 30,391
Additions – 109 3,000 926 – – 4,035
Disposals – (4,972) (25) (408) – (379) (5,784)
At 31 May 2007 8,094 911 8,342 9,569 – 1,726 28,642
Additions – – 2,001 9,116 498 1,161 12,776
Disposals – (161) – – – (622) (783)
At 31 May 2008 8,094 750 10,343 18,685 498 2,265 40,635
Amounts written off
At 1 June 2006 – – 1,208 2,037 – – 3,245
Charge for the year (charged to
administrative expenses) – – 1,500 – – – 1,500
Disposals – – (25) (95) – – (120)
At 1 June 2007 – – 2,683 1,942 – – 4,625
Charge for the year (charged to
administrative expenses) 187 – 4,000 3,500 – – 7,687
At 31 May 2008 187 – 6,683 5,442 – – 12,312
Net book value
At 31 May 2008 7,907 750 3,660 13,243 498 2,265 28,323
At 31 May 2007 8,094 911 5,659 7,627 – 1,726 24,017
  Page 61
Notes to the financial statements
14. Investments (continued)
Joint ventures 
At 31 May 2008, the group and the company had interests in the following incorporated ventures:
Percentage of
equity capital held Relevant accounting
at 31 May 2008 period end date
Bromborough Business Park Limited 33.33 30 June 2008
Liberty Pochin Limited 50 31 March 2008
Weston Gate Developments Limited 50 31 May 2008
Manchester Technopark Limited 50 31 May 2008
UKLP Walker House Limited (formerly Nathan Developments Limited) 50 31 May 2008
Hawarden Business Park Limited 49 31 May 2008
Castlewood Developments (Birkenhead) Limited 50 31 May 2008
Pochin Rosemound (Deeside) Limited 50 31 May 2008
Trinity Court Developments Limited 50 31 May 2008
Castlewood Pochin Developments Limited 50 31 May 2008
UKLP Developments Limited 50 31 May 2008
UKLP Exchange Flags Limited 50 31 May 2008
All the above are incorporated, registered in England and Wales and operate as property developers in Great Britain, except for
Liberty Pochin Limited and Bromborough Business Park Limited which are dormant. All holdings are of ordinary shares, apart from
Manchester Technopark Limited where there is also a £500,000 holding of cumulative redeemable preferences shares. All the
investments are unlisted. In addition, the group and the company hold 50% of the business of Expressway Industrial Estate,
Runcorn, an unincorporated joint venture property development with an accounting period ending 31 March 2008, and also 25%
of the business of The Midpoint Partnership, an unincorporated joint venture property development with an accounting period
ending 31 May 2008.
Joint ventures (continued)
The group’s interest in its joint ventures’ assets, liabilities, income and expenses is as follows:
2008 2007
£’000 £’000
Current assets 19,516 25,299
Long-term assets 50,491 11,220
Current liabilities (8,957) (5,169)
Long-term liabilities (41,104) (19,936)
19,946 11,414
Income 7,506 1,609
Expenses (4,828) (1,691)
Tax (815) 127
Share of post tax results from joint ventures 1,863 45 Page 62
Notes to the financial statements
14. Investments (continued)
Associates
The group and company holds 50% of the ordinary shares and 100% of the deferred ordinary shares in each of Lincoln House
Properties Limited and Manchester House Properties Limited. Both the investments are unlisted companies with accounting period
end dates of 31 May. Their activity is property investment.
The group and company holds 25% of the ordinary shares of UKLP (Bryn Cegin) Limited, an unlisted company with an accounting
period end date of 31 December. Its activity is property development.
The group’s interest in its associates’ assets, liabilities, income and expenses is as follows:
2008 2007
£’000 £’000
Current assets 109 82
Long-term assets 3,909 3,068
Current liabilities (464) (190)
Long-term liabilities (268) (923)
3,286 2,037
Income 1,266 802
Expenses (1,101) (511)
Tax 272 (50)
Share of post tax results from associates 437 241
Available for sale financial assets
The group and company hold a 7.8% equity holding in UK Land & Property Limited. The investment was at a cost of £332,000. 
The group and company also hold 100% of cumulative redeemable preference shares in UK Land & Property Limited at a cost of
£325,000.
The group and company hold a 9.6% equity holding in Manchester Science Park Limited, its joint venture partner in Manchester
Technopark Limited, details of which are given above. The investment was at a cost of £960,000. The group and company also
hold 9% of cumulative redeemable preference shares in Manchester Science Park Limited at a cost of £540,000.
Shares in group undertakings
Principal group undertakings include:
Percentage of
equity capital held
at 31 May 2008 Activity
Pochin (Contractors) Limited 100 Contracting
Pochin Plant Limited 100 Operated plant hire
Pochin Developments Limited 100 Property development
Keele Park Developments Limited 100 Property investment
Bushwing Limited 100 Property development
P .B. Developments Limited
†
100 Property development
Castello Developments Limited
†
100 Property development
Pochin Homes Limited 100 Residential
Pochin Gateway Commercial Limited 100 Property investment
All of the above are registered in England and Wales.
†
Equity capital held by Bushwing Limited
The group and company has a 79% interest in the business of Prosperity Court, Middlewich, an unincorporated property
development. Under IAS 27, the group’s investment has been treated as if it were a legal subsidiary. Prosperity Court has an
accounting period ended 31 May 2008.
The development holds an investment property valued at £1,401,000 (2007: £1,401,000), which is largely financed by monies
advanced from Pochin’s PLC of £950,000 (2007: £950,000) and a Government grant of £283,000 (2007: £283,000) and
generated profits from rental income of £149,000 (2007: £145,000) in the year.
  Page 63
Notes to the financial statements
15. Inventories
Group
2008 2007
£’000 £’000
Work in progress on long term contracts 2,368 3,003
Development work in progress 29,518 32,337
Raw materials, consumables and finished products 291 298
32,177 35,638
The replacement cost of inventories is considered not to be materially different from the values included above.
An amount of £8,300,000 (2007: £14,330,000) included in development work in progress is pledged as security (see note 22).
16. Construction contracts
2008
£’000
Contract revenue recognised as revenue in the year 82,239
Contract costs incurred 262,414
Recognised profits 17,737
Progress billings 269,783
Due from customers 10,768
Due to customers (400)
17. Trade and other receivables
Group Company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
Amounts falling due within one year:
Trade receivables 2,985 3,298 – –
Amounts recoverable on contracts 10,768 8,126 – –
Amounts owed by group undertakings – – – – 
Amounts owed by joint ventures (see note 35) 7,094 4,291 2,654 1,517
Amounts owed by associates (see note 35) 112 10 112 10
Other receivables 721 1,866 95 153
Prepayments and accrued income 1,862 1,439 671 406
23,542 19,030 3,532 2,086
Included in trade receivables is a bad debt provision of £72,000 (2007: £121,000).
Some of the unimpaired trade receivables and amounts recoverable on contracts are past due as at 31 May.
The age of financial assets past due but not impaired is as follows:
2008 2007
£’000 £’000
Not more than 3 months 2,473 2,105
More than 3 months but not more than 6 months 341 1,037
More than 6 months 102 265
2,916 3,407
18. Cash and cash equivalents
With the exception of deposits of £294,000 (2007: £155,000) held by subsidiary companies, all other investments and deposits
are held by the company. Page 64
Notes to the financial statements
19. Trade and other payables
Group Company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
Payments received on account 400 700 – –
Trade payables 12,120 13,104 – –
Amounts owed to group undertakings – – 17,826 19,072
Amounts owed to associates (see note 35) – 38 – 38
Other taxation and social security 2,694 453 – –
Other creditors 1,376 1,015 443 121
Accruals and deferred income 12,706 8,892 1,121 1,020
29,296 24,202 19,390 20,251
20. Financial liabilities - current borrowings
Group Company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
Bank overdrafts 23,918 11,409 16,300 148
Bank loans 10,534 10,618 9,942 10,357 
34,452 22,027 26,242 10,505
21. Financial liabilities - non-current borrowings
Group Company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
Bank loans 12,411 9,207 – 179
Retirement benefit obligation – 577 – 84
Deferred tax liabilities (see note 24) 1,374 2,413 475 1,575
Long term provisions (see note 25) 496 1,632 496 500
Other payables (see note 26) 5,204 4,757 – –
19,485 18,586 971 2,338 Page 65
Notes to the financial statements
22. Borrowings
Borrowings are repayable as follows:
Group Company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
Within one year:
Bank and other borrowings 34,452 22,027 26,242 10,505
After one and within two years:
Bank and other borrowings 750 1,145 – 179
After two and within three years:
Bank and other borrowings 750 750 – –
After three and within four years:
Bank and other borrowings 750 750 – –
After four and within five years:
Bank and other borrowings 750 750 – –
After five years: 
Bank and other borrowings 9,411 5,812 – –
46,863 31,234 26,242 10,684
Bank borrowings above include:
(1) a loan of £12,786,000 secured by a fixed and legal charge over investment properties with a carrying value of £17,033,000. 
The loan is repayable over 20 years in equal quarterly instalments. Interest is payable on the loan at a rate of 1.25% above LIBOR;
(2) an overdraft of £7,618,000 secured by a first legal mortgage over land and buildings with a carrying value of £11,308,000.
Interest is payable on the overdraft at a rate of 1.0% above National Westminster Bank Plc base rate;
(3) an unsecured loan of £179,000. Interest is payable on the loan at a rate of 1.0% above National Westminster Bank Plc base
rate. The loan is repayable over a four year period in equal quarterly instalments and repayments commenced in February 2005;
(4) a loan of £9,764,000 secured by a legal charge over a property development with a carrying value of £8,300,000. The loan is
repayable the earlier of 30 January 2009 or the date on which the property is sold. Interest is payable on the loan at a rate of
1.25% above LIBOR.
(5) a revolving credit facility of £16,300,000 secured by first legal mortgages over investment property with a carrying value of
£21,207,000. Interest is payable at a rate of 1.0% above LIBOR. 
(6) a secured loan of £216,000 repayable in July 2008.
23. Financial instruments
As referred to in the Financial Review on page 14, the group only uses financial instruments comprising borrowings, cash, liquid
resources, an interest rate swap and various items, such as trade receivables and trade payables, that arise directly from its
operations. The main purpose of these financial instruments is to finance the group’s operations.
The main risks arising from the group financial instruments are interest rate risk, liquidity risk and credit risk. The board reviews and
agrees policies for managing each of these risks and they are summarised below. These policies have remained unchanged from
previous years.
The group does not have any material exposure to currency rate risks.
It is, and has been throughout the year under review, the group policy that no trading in financial instruments shall be undertaken.
Interest rate risk
The group has followed its treasury policy and has funded its operations by utilising retained profits and by borrowing where appropriate.
The group’s general borrowing facilities are at floating rates of interest and during the year were broadly matched by cash 
and deposits (see note 18), effectively limiting the group’s exposure to interest rate fluctuations. Specific short term borrowings to
finance development projects are at floating rates of interest and the group’s policy is not to seek to fix these rates in view of the
short term nature of the facilities.
The group’s long term borrowings are also at floating rates of interest but the board reviews the risk continually against costs and
benefits involved in taking measures to limit the exposure to increased rates of interest. The group has entered into variable pay
fixed interest rate swaps in respect of short and long term borrowings of £22,500,000 (2007: £7,500,000), which is the borrowing
value for which interest rate swaps are in place. The fair value of the interest rate swaps is £515,000 asset (2007: £253,000 asset).
The groups loans to joint ventures and associates are at floating rates of interest, which reflect the group’s external borrowings.
  Page 66
Notes to the financial statements
23. Financial instruments (continued)
The interest exposure of the net financial liabilities of the group was:
Interest rate
Fixed Floating Total
£’000 £’000 £’000
At 31 May 2008 216 46,647 46,863
At 31 May 2007 289 30,945 31,234
The floating rate borrowings bear interest at rates based on UK clearing bank base lending rate and LIBOR.
The weighted average rate at which the group has secured its fixed rate borrowings is 5.2%. The weighted average period for
which the rates are fixed is 4.0 years.
The table below indicates the effect on profit before tax if interest rates on group borrowings changed by 50 basis points with all
other variables held constant.
2008 2007
£’000 £’000
Development loans 22 67
Acquisition loans 1 3
Total 23 70
The directors do not consider that there will be significant differences between movements in the fair value of interest rate swaps
and the fair value of related interest bearing loans, on the basis that these loans are relatively short term and any movements are
likely to result in an immaterial net impact.
Liquidity risk
The group seeks to achieve a balance between short and long term funding to maintain continuity and flexibility.
Short term borrowing facilities are used for property development projects. Certain short term project facilities continue to be
available until anticipated development sales are realised.
It is the group’s policy that investment in non current assets is funded from retained profits wherever possible.
Business acquisitions are funded by longer term borrowing, with repayments made out of the cash flow arising from the acquired
businesses.
The group holds bank deposits with a limited number of financial institutions and funding is sourced from a small number of
counterparties.
Credit risk
The group has no significant concentrations of credit risk arising from trade receivables. The group has implemented policies that
require appropriate credit checks on potential customers before sales commence.
Surplus funds held in the group are invested, in line with board-approved policy, in high quality, short term liquid instruments, usually
money market funds or bank deposits. Credit risk is managed by limiting the aggregate exposure to any one individual
counterparty, taking into account its credit rating. Such counterparty exposures are regularly reviewed and adjusted as necessary.
Accordingly, the possibility of material loss arising in the event of non-performance by counterparties is considered to be unlikely.
However the group holds bank deposits with a limited number of financial institutions.
Borrowing facilities 
Details of group borrowings are detailed in note 22.
The group has various undrawn committed borrowing facilities. The facilities available at 31 May 2008 in respect of which all
conditions precedent had been met were as follows:
£’000
Expiring in one year or less 10,000
The facilities included above are subject to review by the providers of the facilities on 30 November 2008.
Fair values 
The difference between the fair values and the book values of the group’s financial assets and liabilities at 31 May 2008 is not
material. It is relevant, in particular, in relation to the loans with joint ventures and associates. Given the directors’ views on the
length of the investments, the interest rate charged and the relative standing of the group’s risk status in the market, this is
considered appropriate.
  Page 67
Notes to the financial statements
23. Financial instruments (continued)
Summary of financial assets and liabilities by category
The carrying amounts of the group’s financial assets and liabilities as recognised at the balance sheet date may also be
categorised as follows:
Group
As at 31 May 2008
Assets Loans & Held for  Available Non financial 
receivables trading for sale assets Total
£’000 £’000 £’000 £’000 £’000
Cash at bank 3,988 – – – 3,988
Derivatives – 515 – – 515
Trade receivables 13,753 – – – 13,753
Other receivables – current 7,927 – – – 7,927
Non current investments – – 2,157 – 2,157
Investment in joint ventures and associates 17,730 – – 5,502 23,232
43,398 515 2,157 5,502 51,572
As at 31 May 2007
Assets Loans & Held for  Available Non financial 
receivables trading for sale assets Total
£’000 £’000 £’000 £’000 £’000
Cash at bank 223 – – – 223
Derivatives – 253 – – 253
Trade receivables 11,424 – – – 11,424
Other receivables – current 6,167 – – – 6,167
Non current investments – – 2,157 – 2,157
Investment in joint ventures and associates 9,354 – – 4,097 13,451
27,168 253 2,157 4,097 33,675
As at 31 May 2008
Liabilities
£’000
Bank overdraft 23,918
Trade payables 12,520
Loans payable – current 10,534
Loans payable – non current 12,411
Other liabilities – current 1,376
Other liabilities – non current 5,204
Accruals 12,706
78,669 Page 68
Notes to the financial statements
23. Financial instruments (continued)
Summary of financial assets and liabilities by category (continued)
Group (continued)
As at 31 May 2007
Liabilities
£’000
Bank overdraft 11,409
Trade payables 13,804
Loans payable – current 10,618
Loans payable – non current 9,207
Other liabilities – current 1,015
Other liabilities – non current 5,889
Accruals 8,892
60,834
Company
The carrying amounts of the company’s financial assets and liabilities as recognised at the balance sheet date may also be
categorised as follows:
As at 31 May 2008
Assets
Loans Available Non financial 
& receivables for sale assets Total
£’000 £’000 £’000 £’000
Cash at bank 3,695 - - 3,695
Other receivables – current 2,861 - - 2,861
Non current investments - 2,157 - 2,157
Investments in group undertakings, joint ventures and associates 16,258 - 12,065 28,323
22,814 2,157 12,065 37,036
As at 31 May 2007
Assets
Loans Available Non financial 
& receivables for sale assets Total
£’000 £’000 £’000 £’000
Cash at bank 68 - - 68
Other receivables – current 1,680 - - 1,680
Non current investments - 2,157 - 2,157
Investments in group undertakings, joint ventures and associates 10,264 - 13,753 24,017
12,012 2,157 13,753 27,922
As at 31 May 2008
Liabilities
£’000
Bank overdraft 16,300
Loans payable – current 9,942
Other liabilities – current 18,269
Accruals 1,121
45,632 Page 69
Notes to the financial statements
23. Financial instruments (continued)
Summary of financial assets and liabilities by category (continued)
Company (continued)
Year ended 31 May 2007
Liabilities
£’000
Bank overdraft 148
Loans payable – current 10,357
Other liabilities – current 19,231
Accruals 1,020
30,756
Contractual maturities of liabilities
Group 
As at 31 May 2008 Current  Non current Later than 
within 12 months 1 to 5 years 5 years
£’000 £’000 £’000
Bank overdraft 25,372 – –
Trade payables 12,520 – –
Loans payable – current 11,686 – –
Loans payable – non current – 5,936 14,583
Other liabilities – current 1,376 – –
Other liabilities – non current – 2,952 2,748
Accruals 12,706 – –
63,660 8,888 17,331
As at 31 May 2007 Current  Non current Later than 
within 12 months 1 to 5 years 5 years
£’000 £’000 £’000
Bank overdraft 14,130 – –
Trade payables 13,804 – –
Loans payable – current 12,237 – –
Loans payable – non current – 5,032 7,407
Other liabilities – current 1,015 - –
Other liabilities – non current – 2,009 2,748
Accruals 8,892 – –
50,079 7,041 10,155
Company
As at 31 May 2008
Current 
within 12 months
£’000
Bank overdraft 17,297
Loans payable – current 10,361
Other liabilities – current 18,269
Accruals 1,121
47,048 Page 70
Notes to the financial statements
23. Financial instruments (continued)
Contractual maturities of liabilities (continued)
Company (continued)
2007
Current 
within 12 months
£’000
Bank overdraft 2,130
Loans payable – current 11,132
Other liabilities – current 19,231
Accruals 1,020
33,513
In completing the above analysis a number of assumptions have been made, which are explained as follows:
1. The Bank of England base rate is assumed to be 5% (2007:5.50%) based on the year end rate.
2. LIBOR is assumed to be 5.115% (2007: 5.61%) based on the year end rate.
3. The revolving credit facility and overdrafts are assumed to be repayable in 12 months based on the contractual terms.
4. Where loans do not have an agreed repayment date, management have made an assumption based on the terms of the
loan.
5. Interest has been included in the contractual maturities based on the applicable interest rate at the year end in relation to
variable rate loans, and accrued for the life of the loan.
24. Deferred tax
Group Company
£’000 £’000
At 1 June 2007 2,413 1,575
Decrease in the year (1,039) (1,100)
At 31 May 2008 1,374 475
Deferred taxation is made up as follows:
Group Company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
Accelerated capital allowances 977 1,571 (19) 544
Revaluations 1,249 1,019 373 1,072
Fair value – 94 – –
Interest rate swap 226 75 – –
Share options 121 152 121 (4)
Other (1,440) (326) – (12)
Pension surplus/(deficit) 241 (172) – (25)
1,374 2,413 475 1,575 Page 71
Notes to the financial statements
25. Provisions
Group Company
£’000 £’000
At 1 June 2007 1,632 500
Decrease in the year (1,136) (4)
At 31 May 2008 496 496
Provisions arising from agreements entered into in the normal course of business.
26. Other non current payables
Group
Government Deferred
grants income Total
£’000 £’000 £’000
At 1 June 2007 2,748 2,009 4,757
Increase in the year – 447 447
At 31 May 2008 2,748 2,456 5,204
Government grants were received in respect of expenditure on an investment property.
27. Called up share capital
Company 
Ordinary shares of 25p each:
Number
‘000 £’000
Authorised
At 1 June 2006, 2007 and 31 May 2008 24,000 6,000
Allotted, called up and fully paid
At 1 June 2006, 2007 and 31 May 2008 20,800 5,200
The company has granted options to certain directors and employees in respect of 166,500 ordinary shares of 25p each at £1.21p
per share, 99,000 ordinary shares of 25p each at £1.97p per share, 123,500 ordinary shares of 25p each at £2.00p per share,
97,000 ordinary shares of 25p each at £3.72p, 84,000 ordinary shares of 25p each at £3.30p per share and 98,500 ordinary
shares of 25p each at £3.09p per share exercisable between 2006 and 2015. At 31 May 2008, 175,500 options had been
exercised and 94,000 had lapsed.
28. Employee share trust
At the year end the Employee Share Trust operating the share option scheme held 445,000 shares (2007: 449,500) 
representing 2.14% (2007: 2.16%) of the issued share capital of the company, with a market value at the year end of £845,500 
(2007: £1,517,000). No further purchases have been made since the year end.
  Page 72
Notes to the financial statements
29. Consolidated statement of changes in equity
ShareOwnRevaluationRetained Minority
capital shares reserve earnings Total interest
£’000 £’000 £’000 £’000 £’000 £’000
At 31 May 2006 5,200 (954) 270 41,093 45,609 209
Profit for the period –  – – 6,775 6,775 30
Cost of share based payments – – – 41 41 –
Pension deficit – – – 718 718 –
Realisation of revaluation reserve on disposal – – (30) 30 – –
Equity dividend – – – (1,872) (1,872) (28)
At 31 May 2007 5,200 (954) 240 46,785 51,271 211
Profit for the period –  – – 2,603 2,603 32
Cost of share based payments – – – 46 46 –
Pension deficit – – – 834 834 –
Realisation of revaluation reserve on disposal – – (62) 62 – –
Equity dividend – – – (1,911) (1,911) (32)
At 31 May 2008 5,200 (954) 178 48,419 52,843 211
30. Company statement of changes in equity
Share Retained Total
capital earnings equity
£’000 £’000 £’000
At 31 May 2006 5,200 14,164 19,364    
Loss for the period – 287 287
Cost of share based payments – 12 12
Pension deficit – (422) (422)
Equity dividend – (1,872) (1,872)
At 31 May 2007 5,200 12,169 17,369    
Loss for the period – (3,368) (3,368)
Cost of share based payments – 46 46
Equity dividend – (1,911) (1,911)   
At 31 May 2008 5,200 6,936 12,136  
31. Analysis of balances of cash and cash equivalents
Group Company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
Bank balances and other liquid funds 3,988 223 3,695 68
Bank overdrafts (See note 20) (23,918) (11,409) (16,300) (148)
(19,930) (11,186) (12,605) (80) Page 73
Notes to the financial statements
32. Share based payments
The Executive Share Option Plan (ESOP) was introduced in 2002. Under the ESOP the remuneration committee can grant
options over shares in the company to employees of the company. Options are granted with a fixed exercise price equal to the
market price of the shares under option of the date of grant. The contractual life of an option is 10 years. Awards under the
ESOP are generally reserved for employees at senior management level and above and 42 employees are currently eligible to
participate in this group. There are no reload features. The company has made annual grants in the final quarter each calendar
year since 2002. Options granted under the ESOP will become exercisable on the third anniversary of the date of grant. Exercise
of an option is subject to continued employment. Options were valued using the Binomial model. No performance conditions
were included in the fair value calculations. The fair value per option granted and the assumptions used in the calculation are
as follows:
Grant Date 26/10/07 2/11/06
Share price at grant date £3.085 £3.3000
Exercise price £3.085 £3.2988
Number of employees 42 36
Shares under option 98,500 84,000
Vesting period (years) 33
Expected volatility 15% 15%
Option life (years) 10 10
Expected life (years) 33
Expected life (years) 55
Risk free rate (5 year expected life) 4.87% 4.84%
Expected dividends expressed as a dividend yield 2.70% 2.70%
Possibility of ceasing employment before vesting 5% 5%
Expectations of meeting performance criteria 100% 100%
Fair value per option (5 year expected life) £0.53 £0.52
The expected volatility was determined by calculating the annualised standard deviation of daily continuously compounded
returns of the company’s share price over three years from the date of grant. The expected life used in the model has been
adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioural
considerations. The risk free rate of return is the yield on zero-coupon UK government bonds of a term consistent with the
assumed option life. A reconciliation of option movements over the year to 31 May 2008 is shown below:
2008 2007
Weighted Weighted
average average
exercise exercise
Number price Number price
Outstanding at 1 June 326,000 £2.75 321,000 £2.39
Granted 98,500 £3.09 84,000 £3.30
Forfeited (21,000) £2.78 (11,500) £3.33
Exercised (4,500) £1.97 (67,500) £1.52
Outstanding at 31 May 399,000 £2.85 326,000 £2.75
Exercisable at 31 May 143,000 £1.97 49,500 £1.90
The weighted average share price during the period for options exercised over the year was £3.39 (2007: £3.39). The options
outstanding at 31 May 2008 had a weighted average remaining contractual life of 7.7 years (2007: 8.0 years). The range of
exercise prices for outstanding share options is £1.21p to £3.72p. The total charge for the year relating to employee share
based payment plans was £46,000 (2007: £41,000), all of which related to equity settled share based payment transactions.
After deferred tax, the total charge was £32,000 (2007: £29,000).
  Page 74
Notes to the financial statements
33. Contingent liabilities
There are contingent liabilities in respect of guarantees under building agreements entered into in the normal course of business.
There are unlimited cross guarantees among group companies relating to the group bank overdraft facility of £10,000,000.
The company has guaranteed £1,000,000 in respect of the bank borrowings of its subsidiary company, Keele Park Developments
Limited.
The company has guaranteed hire purchase and operating lease facilities for subsidiary company amounting to £10,939,000.
The company has guaranteed £3,800,000 in respect of the bank borrowings of UKLP Exchange Flags Limited, plus interest and
cost overruns.
The company has guaranteed £3,500,000 in respect of the bank borrowings of UKLP Developments Limited.
The company has guaranteed interest and cost overruns in respect of The Midpoint Partnership to a maximum of £1,000,000.
The company has guaranteed £7,650,000 in respect of the bank borrowings of UKLP Walker House Limited.
34. Capital and lease commitments
Group
Capital commitments
2008 2007
£’000 £’000
Expenditure contracted for but not provided – 17
Lease commitments as lessee
The group had the following outstanding commitments for future minimum payments under non cancellable operating leases:
Land and Plant, machinery
buildings and vehicles
2008 2007 2008 2007
£’000 £’000 £’000 £’000
Operating leases expiring:
within one year 18 – 381 99
between one and five years 10 28 6,474 5,838
after five years 105 105 4,084 4,423
133 133 10,939 10,360
Commitments in respect of plant, machinery and vehicles are in connection with Construction Services activities.
Lease commitments as lessor
The group had the following income commitments under non-cancellable leases:
Land and buildings
2008 2007
£’000 £’000
Operating leases expiring:
within one year 136 303
between one and five years 1,363 1,807
after five years 12,653 11,650
14,152 13,760 Page 75
Notes to the financial statements
35. Related party transactions
Details of the company’s interests in associates and joint ventures are set out in note 14 and listed below are details of transactions
that occurred with them.
During the year, the company’s subsidiary Pochin (Contractors) Limited carried out construction work for the following joint venture
partners:
• UKLP Walker House Limited: work valued at £5,805,000 in connection with the refurbishment of Walker House, Exchange
Flags, Liverpool.
• The Midpoint Partnership: work valued at £103,000 in connection with the construction of a distribution unit at 
Midpoint 18.
• Hawarden Business Park Limited: Work valued at £850,000 in connection with the construction of an industrial park at
Hawarden, Flintshire.
• UKLP Developments Limited: Work valued at £2,444,000 in connection with the construction of an office park at Heald
Green near Manchester Airport.
During the year, the company had the following loans with its associated companies and joint venture partners. 
Outstanding amounts are included in the loan balances shown overleaf:
• a long term loan to Lincoln House Properties Limited, secured by a debenture and second fixed legal charges over
properties held by that company. Interest is chargeable on the loan at 2% over the base rate of National Westminster Bank
Plc. Repayment is not due until there is a sale of a property which is the relevant security;
• a long term loan to Manchester House Properties Limited, secured by a debenture and second fixed legal charges over
properties held by that company. Interest is chargeable on the loan at 2% over the base rate of National Westminster Bank
Plc. Repayment is not due until there is a sale of a property which is the relevant security;
• a long term loan to Manchester Technopark Limited, secured by a fixed and floating charge over the assets of Manchester
Technopark Limited and a second charge over land comprising the technology park development at Birley Fields, Hulme,
Manchester. Interest is chargeable on the loan at 1.75% over the base rate of National Westminster Bank Plc;
• a short term loan, repayable on demand, to Castlewood Developments (Birkenhead) Limited. Interest is chargeable on the
loan at 2% over the base rate of National Westminster Bank Plc.
• a short term loan, repayable on demand, to Trinity Court Developments Limited. Interest is chargeable on the loan at 3%
over the base rate of National Westminster Bank Plc.
• a short term loan, repayable on demand, to The Midpoint Partnership. No interest is chargeable on the loan.
• a short term loan, repayable on demand, to Castlewood Pochin Developments Limited. No interest is chargeable 
on the loan.
• a short term loan, repayable on demand, to UKLP Walker House Limited. Interest is chargeable on the loan at 2% over the
base rate of National Westminster Bank Plc.
• a short term loan, repayable on demand, to UKLP (Bryn Cegin) Limited. Interest is chargeable on the loan at 2% over the
base rate of National Westminster Bank Plc.
• a short term loan, repayable on demand, to UKLP Exchange Flags Limited. Interest is chargeable on the loan at 2% over
the base rate of National Westminster Bank Plc.
During the year the company charged rental income to group undertakings of £462,000 as follows:
• £109,000 to Pochin (Contractors) Limited;
• £14,000 to Pochin Developments Limited;
• £212,000 to Pochin Plant Limited;
• £19,000 to Pochin Homes Limited. Page 76
Notes to the financial statements
35. Related party transactions (continued)
During the year, the company charged interest on loans to associated companies and joint venture partners. Outstanding amounts
are included in the debtor balances shown below. The amounts charged were as follows:
• £50,000 to Lincoln House Properties Limited;
• £45,000 to Manchester House Properties Limited;
• £136,000 to Manchester Technopark Limited;
• £774,000 to Castlewood Developments (Birkenhead) Limited.
• £93,000 to Trinity Court Developments Limited.
• £6,000 to The Midpoint Partnership.
• £71,000 to UKLP Exchange Flags Limited
• £62,000 to UKLP Walker House Limited
• £21,000 to UKLP (Bryn Cegin) Limited
During the year, the company’s subsidiary, Pochin Developments Limited, charged the following management fees to its joint
venture partners in respect of development activities:
• £16,000 to Manchester Technopark Limited;
• £24,000 to Hawarden Business Park Limited;
• £28,000 to The Midpoint Partnership.
Balances due to/(from) the group by joint ventures and associates at 31 May were as follows:
2008 2007
Loans Debtors Creditors Loans Debtors Creditors
£’000 £’000 £’000 £’000 £’000 £’000
Joint ventures
Weston Gate Developments Limited ––– –12 –
Manchester Technopark Limited 1,895 755 – 1,670 647 –
Hawarden Business Park Limited – 582 – –––
Castlewood Developments 
(Birkenhead) Limited 9,637 1,286 – 3,539 512 –
Pochin Rosemound (Deeside) Limited 3,125 – – 2,061 – –
Trinity Court Developments Limited 614 1,696 – 319 1,578 –
Castlewood Pochin Developments Limited 40 – – 39 – –
The Midpoint Partnership – – – – 1,542 –
UKLP Developments Limited 150 – – – – –
UKLP Walker House Limited 4 2,704 – –––
UKLP Exchange Flags Limited –71 – –––
15,465 7,094 – 7,628 4,291 –
Associates
Lincoln House Properties Limited 1,202 – – 1,145 – (38)
Manchester House Properties Limited 661 91 – 581 10 –
UKLP (Bryn Cegin) Limited 402 21 – –––
2,265 112 – 1,726 10 (38)
  Page 77
Notes to the financial statements
36. Capital management policies and procedures
Pochin’s capital management objectives are:
• to ensure the group’s ability to continue as a going concern; and 
• to provide an adequate return to shareholders 
by investing in a range of associated market sectors and pricing products and services commensurately with the level of risk.
The group’s equity base is largely fixed and therefore capital is sourced through retained earnings, bank borrowings and asset
sales.
The group’s aim is to fund the working capital requirements of its trading activities through short term unsecured overdraft
facilities.
Investment in short to medium term property development activity is funded through a combination of retained earnings and
discrete development financing facilities. Each of these facilities has its own covenant obligations, which the group continually
monitors and operates within.
Long term investment activity is funded through the arrangement of appropriate long term borrowing and where covenant
obligations apply the group continually monitors these requirements and operates within them.
The group funds any speculative developments from retained earnings.
The board manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the
risk characteristics of the underlying assets. To maintain or adjust the capital structure the group may adjust the amount of
dividends paid to shareholders, return capital to shareholders or sell assets to reduce debt.
  Page 78
Report of the Independent Auditors 
to the members of Pochin’s PLC
We have audited the group and parent company financial
statements (the “financial statements”) of Pochin’s PLC for the
year ended 31 May 2008 which comprise the principal
accounting policies, the group income statement, the group
and parent company balance sheets, the group and parent
company cash flow statements, the group and parent
company statement of recognised income and expense and
notes 1 to 36. These financial statements have been prepared
under the accounting policies set out therein. We have also
audited the information in the Directors’ Remuneration Report
that is described as having been audited.
This report is made solely to the company’s members, as a
body, in accordance with Section 235 of the Companies Act
1985. Our audit work has been undertaken so that we might
state to the company’s members those matters we are
required to state to them in an 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
The directors’ responsibilities for preparing the Annual Report,
the Directors’ Remuneration Report and the financial
statements in accordance with applicable law and
International Financial Reporting Standards (IFRS) as adopted
by the European Union are set out in the Statement of
Directors’ Responsibilities.
Our responsibility is to audit the financial statements and the
part of the Directors’ Remuneration Report to be audited in
accordance with relevant legal and regulatory requirements
and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial
statements give a true and fair view, whether the financial
statements and the part of the Directors’ Remuneration
Report to be audited have been properly prepared in
accordance with the Companies Act 1985 and, as regards
the group financial statements, Article 4 of the IAS Regulation
and whether the information given in the Directors’ Report is
consistent with the financial statements. The information
given in the Directors’ Report includes that specific
information presented in the Chairman’s Statement, and the
Chief Executive’s Report, that is cross-referenced from the
Principal Activities section of the Directors’ Report. We also
report to you if, in our opinion, the company has not kept
proper accounting records, if we have not received all the
information and explanations we require for our audit, or if
information specified by law regarding directors’ remuneration
and other transactions is not disclosed. 
We review whether the Corporate Governance Statement
reflects the company’s compliance with the nine provisions of
the 2006 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 other information contained in the Annual Report and
consider whether it is consistent with the audited financial
statements. The other information comprises only the
Directors’ Report, the unaudited part of the Directors’
Remuneration Report, the Chairman’s Statement, the Chief
Executive’s Report and Financial Review, the Corporate
Governance Statement and the five year summary. We
consider the implications for our report if we become aware of
any apparent mis-statements or material inconsistencies with
the financial statements. Our responsibilities do not extend to
any other information.
Basis of audit opinion
We conducted our audit in accordance with International
Standards on Auditing (UK and Ireland) issued by the Auditing
Practices Board. An audit includes examination, on a test
basis, of evidence relevant to the amounts and disclosures in
the financial statements and the part of the Directors’
Remuneration Report to be audited. It also includes an
assessment of the significant estimates and judgments made
by the directors in the preparation of the financial statements,
and of whether the accounting policies are appropriate to the
group’s and company’s circumstances, consistently applied
and adequately disclosed.
We planned and performed our audit so as to obtain all the
information and explanations which we considered necessary
in order to provide us with sufficient evidence to give
reasonable assurance that the financial statements and the
part of the Directors’ Remuneration Report to be audited are
free from material mis-statement, whether caused by fraud or
other irregularity or error. In forming our opinion we also
evaluated the overall adequacy of the presentation of
information in the financial statements and the part of the
Directors’ Remuneration Report to be audited.
Opinion
In our opinion:
• the group financial statements give a true and fair
view, in accordance with IFRS as adopted by the
European Union, of the state of the group’s affairs as
at 31 May 2008 and of its profit for the year then
ended.
• the parent company financial statements give a true
and fair view, in accordance with IFRS as adopted by
the European Union as applied in accordance with
provisions of the Companies Act 1985, of the state of
the parent company’s affairs as at 31 May 2008. Page 79
Report of the Independent Auditors 
to the members of Pochin’s PLC
• the financial statements and the part of the Directors’
Remuneration Report to be audited have been
properly prepared in accordance with the Companies
Act 1985 and, as regards the group financial
statements, Article 4 of the IAS Regulation; and 
• the information given in the Directors’ Report is
consistent with the financial statements for the year
ended 31 May 2008.
Separate opinion in relation to IFRS
The group, in addition to complying with its legal obligations to
comply with IFRS as adopted by the European Union, has also
complied with the IFRS as issued by the International
Accounting Standards Board. In our opinion the group financial
statements give a true and fair view in accordance with IFRS of
the state of the group’s affairs as at 31 May 2008 and of its
profit for the year then ended.
Grant Thornton UK LLP
Registered Auditor
Chartered Accountants
Liverpool
22 September 2008 Page 80
Five year summary
Year ended 31 May
2004 2005 2006 2007 2008
UK GAAP IFRS IFRS IFRS IFRS
£’000 £’000 £’000 £’000 £’000
Turnover 65,910 87,309 124,295 116,554 115,273
Profit before tax 5,080 6,183 9,383 9,135 1,776
Retained profit 1,679 4,074 3,738 6,806 2,635
Earnings per share (basic) continuing operations 15.3p 20.3p 28.8p 33.6p 12.8p
Earnings per share (diluted) continuing operations 15.3p 20.2p 28.5p 33.4p 12.7p
Dividends per share 6.9p 7.6p 8.75p 9.25p 6.0p
Net assets employed 45,965 44,409 45,818 51,482 53,054
The above figures for the year ending 31 May 2004 have been prepared under UK GAAP . The figures for the years ending 31 May
2005, 2006, 2007 and 2008 have been prepared under IFRS.
2007 116.6
2006 124.3
2005 87.3
2004 65.9
Turnover (£m)
2007 9.1
2008 115.3 2008 1.8
2006 9.4
2005 6.2
2004 5.1
Profit before tax from 
continuing operations (£m)
2007 51.5
2006 45.8
2005 44.4
2004 46.0
Net assets employed (£m)
2007 9.25
2008 53.1 2008 6.0
2006 8.75
2005 7.6
2004 6.9
Dividend per share (p)
  Page 81
Shareholder information
Registered office
Brooks Lane, Middlewich, Cheshire, CW10 0JQ
Tel:  01606 833333   Fax:  01606 833331
Website address
www.pochins.plc.uk
Registered number
Registered in England and Wales No. 00300573
Secretary
Mr. D. J. Hedley BSc.(Hons) Solicitor
Principal bankers
Royal Bank of Scotland plc
6th Floor, 1 Spinningfields Square, Manchester, M3 3AP
Auditors
Grant Thornton UK LLP
1st Floor, Royal Liver Building, Liverpool, L3 1PS
Stockbrokers & corporate advisors
Charles Stanley Securities
25 Luke Street, London, EC2A 4AR
Solicitors
Mace & Jones
Pall Mall Court, 61-67 King Street, Manchester, M2 3WQ
Registrars
Capita Registrars
Northern House, Woodsome Park, Fenay Bridge,
Huddersfield, HD8 0LA
Tel:  0870 162 3131   Fax:  01484 600 911
Financial calendar
Annual general meeting 2008 24 October 2008
Final dividend payable 31 October 2008
Interim results announced January 2009
Interim dividend payable April 2009
Preliminary announcement of
results for year ended 31 May 2009 September 2009
Circulation of annual report to
shareholders September 2009
Annual general meeting 2009 October 2009
Share price
At 31 May 2007 337.5p
At 31 May 2008 190.0p
Range 180.0p – 337.5p
Recent dividends
Amount Paid/payable Ex dividend date Register closed
Interim 2006/07 3.0p 6/4/07 9/3/07 11/3/07
Final 2006/07 6.25p 2/11/07 3/10/07 5/10/07
Interim 2007/08 3.0p 7/4/08 6/2/08 8/2/08
Final 2007/08 3.0p 31/10/08 1/10/08 3 /10/08 Pochin’s PLC, Brooks Lane, Middlewich, Cheshire CW10 0JQ
Tel: 01606 833333   Fax: 01606 833331
www.pochins.plc.uk
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