Pro t e ct i n g l i v e s
creating value
Silverdell Plc Annual report and accounts 2010 silverdell Plc
14 Buckingham Street
London WC2N 6DF
www.silverdell.plc.uk
Silverdell Plc Annual report and accounts 2010
8981_Silverdell_AR10_Cov_TP 2.indd   1 10/12/10   10:32:35 who we are 
Silverdell Plc works with major organisations both here 
and overseas, whose executives have a duty to protect 
people, assets and reputation.
Silverdell Group provides peace of mind through its 
Specialist Environmental Support Services, majoring  
on the management of asbestos and other hazardous 
materials. 
Which means our customers know that their interests  
are always protected.
The Group provides managed solutions for the assessment, survey, safe handling and removal of  
hazardous or potentially hazardous waste. The Group’s collaborative approach supports remediation  
and refurbishment projects, and serves ongoing maintenance contract requirements for access and 
regulatory compliance. Working across the public, private, construction and industrial markets,  
Silverdell is committed to creating an improved and protected environment in which to live and work.
From its origins in asbestos and licensed waste, the Group has developed into a high-quality specialist 
environmental support services and regeneration organisation providing innovative solutions which  
meet customer requirements safely and cost-effectively. 
This has been achieved through growth in key market sectors. These include the public sector, defence, 
nuclear, transport, utilities, construction, and industrial and petrochemical markets, which provide  
a diverse range of commercial opportunities. A track record of winning and delivering some of the largest 
and most challenging projects around the country is testament to the technical expertise within the Group.
o verview
01 Group financial highlights
02 Our approach
04 At a glance
06 Industry review
08 Chairman’s statement
10 Q&A with Sean Nutley,  
 Chief Executive
12 Delivering value
Business review
18  Chief Executive’s statement
25 Financial review
26 Key risks and mitigations  
Governance
28   Directors and senior 
management 
30 Directors’ report
34  Corporate governance  
and risk management
35  Independent auditors’ report  
to the members of Silverdell Plc
Financial statements
36 Consolidated income statement
37  Consolidated statement  
of comprehensive income
38 Consolidated balance sheet
39  Consolidated statement  
of changes in equity
40  Consolidated statement  
of cash flows
41  Notes to the consolidated 
financial statements
67 Company balance sheet
68  Notes to the Company 
financial statements
71  Advisors
72  Information on asbestos- 
related diseases
our online resources
Silverdell communicates its 
financial performance as well as 
providing additional information 
about the Group on its website:  
www.silverdell.plc.uk
Silverdell’s Annual Report and 
Accounts are available to view 
online or to download from:  
www.silverdell.plc.uk/reports.asp
Other Silverdell Plc Group 
companies can be found at:  
www.silverdell.co.uk
www.kitsons.co.uk
www.redhills.co.uk
www.silverdellacademy.co.uk
Many of the statistics and facts concerning asbestos and mesothelioma have been sourced from the following: HSE (Health and Safety 
Executive) 2010, Mesothelioma deaths – the latest picture for Great Britain: Geographical analysis 1981-2005 and Occupational analysis 
2002-2005. http://www.hse.gov.uk/statistics/causdis/mesothelioma/factsheets.htm; World Health Organisation Fact Sheet No. 343 July 2010; 
HSE website – Asbestos-related disease statistics: frequently asked questions and answers – Updated August 2010; Action Mesothelioma Day 
2010 Campaign Guide – British Lung Foundation; TUC 14/2/2002; TUC Asbestos Advisory Information; the British Lung Foundation website.
Designed and produced by The College www.thecollege.uk.com 
 
Printing and paper: Printed by Jones and Palmer using inks formulated from sustainable raw materials. The paper is Revive Pure White Silk  
a recycled paper produced using 100% recycled waste. The pulp is bleached using a Totally Chlorine Free (TCF) process at a mill that has  
been awarded the ISO140001 certificate for environmental management.
 
If you have finished reading the Annual Report and no longer wish to retain it, please pass it on to other interested readers, return it to  
Silverdell Plc or dispose of it in your recycled paper waste. Thank you.
8981_Silverdell_AR10_Cov_TP 3.indd   2 13/12/10   16:41:18 Overview Business review Governance Financial statements
01 Silverdell Plc Annual report and accounts 2010
highlights •  Gross profit margin up 1.4 ppts at 25.9% (2009: 24.5%)
•  EBITDA
1
 up 70% at £3.9m (2009: £2.3m)
•  Adjusted pre-tax profit
2
 up 317% at £2.5m (2009: £0.6m)
•  Statutory profit before tax of £1.8m (2009: loss of £6.9m)
•  Net debt down £0.4m at £4.3m (2009: £4.7m)
•  Gearing down 3 ppts at 23% (2009: 26%)
•  Banking facilities renegotiated on improved terms to March 2014
•  Administrative costs
2
 down 12% to £11.5m (2009: £13.1m)
1
  Earnings before interest, tax, depreciation and amortisation and also before goodwill  
impairment, share-based payments and non-recurring items.
2
 Before non-recurring items, impairments and amortisation (see Note 11).
g roup financial highlights 
 2010 2009
 £m £m
Continuing operations
Turnover 56.7 59.5
Operating profit/(loss) 2.5 (5.7)
Adjusted operating profit
1
 3.1 1.6
Adjusted operating margin
1
 5.5% 2.7%
 Pence Pence 
Earnings per share  
Adjusted basic
2
 0.9 0.8
Basic 0.5 (7.3)
Diluted 0.5 (7.3)
1
  Before non-recurring items, impairments and amortisation (see Note 11).
2
 Before non-recurring items, impairments, amortisation and share-based payments (see Note 12).
8981_Silverdell_AR10_Frt_TP 2.indd   1 10/12/10   10:52:42 02 Silverdell Plc Annual report and accounts 2010
our approach The Group
Silverdell provides managed environmental support 
services solutions for dealing with the remediation 
and treatment of hazardous wastes, in particular 
asbestos. The Group comprises Silverdell UK 
(asbestos removal), Redhill Analysts (environmental 
consultancy), Kitsons Environmental (industrial & 
decommissioning) and SAFE (training). Silverdell  
has over 30 years’ experience as an asbestos 
remediation contractor and the Group has grown 
substantially, benefiting from stringent legislation 
and regulation, to become one of the largest 
operators in the environmental waste management 
sector, with an unrivalled reputation for service  
and professionalism. The Group has a broad range 
of customers including major blue-chip companies  
as well as central and local governments. 
Compliance
PROTECTING LIVES
Moral duty of care
Legal compliance
CREATING VALUE
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03 Silverdell Plc Annual report and accounts 2010
Protecting lives
Our business is primarily focused on protecting  
the lives of people who are potentially at risk of 
contamination from exposure to asbestos and other 
hazardous waste materials, wherever it is found. 
Our aim is to remove the material before any 
long-term damage is caused and to eliminate the 
risk of any further contamination.
Creating value
Through building a business and becoming a leading 
provider of environmental services, specialising in 
the removal of asbestos and other hazardous waste 
material for the public and private sectors, both  
at home and internationally, we will look to create 
value for our shareholders through a combination  
of organic and acquisitive growth, which will include 
bolt-on acquisitions.
Duty of care:  
reputation and protection 
Our operatives have a moral duty of care to ensure 
that the removal and remediation of any hazardous 
waste material is undertaken without causing any 
long-term damage to the environment or public 
health. Another key aim of our business is to protect 
the reputation of our customers by employing the 
best people and finishing the job to the highest 
possible standard. 
Legal compliance
The Control of Asbestos Regulations (‘CAR’) 2006, 
particularly Regulation 4 of CAR, introduces the 
concept of a ‘duty to manage’ asbestos within 
non-domestic UK premises, creating an obligation  
to assess and manage the risks from asbestos within 
relevant premises. As an organisation we aim to be 
auditable, open and transparent in everything we do.
prot Ecting li VEs cr Eating Valu E
Over the last few years the Group has made significant progress, 
consolidating its position as one of the UK’s pre-eminent hazardous 
waste management companies. Our new strategy ‘Protecting Lives, 
Creating Value’ builds on that success and not only represents 
the next stage of the Group’s development but underscores our 
commitment to our customers, employees, shareholders and 
stakeholder partners.
About Silverdell
Silverdell Plc – The only asbestos 
removal contractor to have 
successfully completed financial 
due diligence to become a plc
About asbestos...
About 125 million 
people in the world  
are exposed to 
asbestos at the 
workplace
8981_Silverdell_AR10_Frt_TP 2.indd   3 10/12/10   10:52:42 04 Silverdell Plc Annual report and accounts 2010
at a glanc E
Environmental 
services
Asbestos surveying, • 
management and removal
 Land remediation and • 
demolition
Removal of lead and  • 
other contaminants 
Preconstruction and  • 
enabling works
Environmental consultancy  • 
–  land, carbon and energy 
management 
Soil stabilisation • 
Industrial  
solutions
Scaffolding and access • 
solutions
Thermal insulation  • 
(tanks and lagging) 
Specialist coatings • 
Painting and general • 
contracting
Regulatory 
compliance
Asbestos compliance • 
Training (‘SAFE’) • 
Compliance testing  • 
– Legionella
Waste management solutions • 
Group structure
Solutions
8981_Silverdell_AR10_Frt_TP 2.indd   4 10/12/10   10:52:47 Overview Business review Governance Financial statements
05 Silverdell Plc Annual report and accounts 2010
About Silverdell
Across the Silverdell Group  
22,000 hours of safety training  
have been delivered
About asbestos...
It is estimated that over 107,000 
people worldwide die annually 
from asbestos-related lung  
cancer, mesothelioma and 
asbestosis resulting from 
occupational exposure
Public
Local Authorities, Housing 
Supporting local government facilities 
management teams and registered social 
landlords
Health 
Long-term framework relationships with  
NHS trusts
Further and Higher Education 
Maintaining the fabric of our schools, colleges 
and universities
Defence 
Regional contracts with the Ministry of Defence
Industrial
Industrial/Engineering 
Maintenance and refurbishment in the 
manufacturing and food processing plants 
Petrochemical, Oil and Gas 
Maintenance of oil and gas terminals
Rail Engineering 
Regeneration of stations and trackside assistance 
for Network Rail and the London Underground
Utilities and energy
Utilities 
Serving customers across the electricity, gas  
and water sectors, offering regional and national 
solutions
Power 
Nuclear decommissioning and dismantling,  
as well as coal-fired and gas power stations,  
and support for installation of new sites
Commercial and construction
Retail/Leisure 
Provide solutions for large and small-scale  
works as part of refurbishments for many major 
high street brands, particularly for partially 
occupied buildings
Construction 
Enabling solutions are integrated, planned  
and structured to support on-site teams
Markets
8981_Silverdell_AR10_Frt_TP 2.indd   5 10/12/10   10:52:47 06 Silverdell Plc Annual report and accounts 2010
We service both the private and public sectors,  
and have a number of blue-chip customers as well  
as local and national government agencies. Our 
commitment to delivering a full service offering, 
from front-end environmental consulting and 
compliance, through to land remediation and 
decommissioning, as well as the removal of other 
hazardous material, reinforces Silverdell as the 
number one choice in the industry.
Asbestos
There are three main types of asbestos: blue,  
brown and white. Renowned for its absorption, 
tensile strength, and its resistance to heat, electrical 
and chemical damage, it was used extensively in 
buildings and in engineered products in the UK  
until its complete ban in the UK in 1999, although 
stockpiles of white asbestos were still used until  
as recently as 2005. Imports of blue and brown 
asbestos were banned in 1985. As asbestos does  
not occur naturally in the UK, the volume of imports 
can be used as a proxy for the quantities of asbestos 
prevalent in the UK building stock.
industry rEV iEw The market
Asbestos is widely seen as a legacy from a time 
when rules and regulations governing the building 
industry were less stringent and onerous than they 
are today. The true extent of the problem only 
comes to light as building stock is refurbished  
or demolished and the asbestos, if detected, has  
to be removed under controlled conditions by 
trained removal specialists, which can often cause 
unnecessary disruption to work and building 
practices.
The Director General of the Asbestos Information 
Centre estimates the total cost of removing asbestos 
in the UK to be between £11-17 billion over the next 
40 years. Due to the non-discretionary nature of  
the industry and the stringent legislation governing 
the removal of asbestos and other notifiable waste 
material, we believe our services will be required  
for this period in order to manage the asbestos risk 
across the UK’s commercial built environment. 
Therefore, the prevalence of asbestos is expected  
to remain a serious issue for the foreseeable future, 
particularly as the legislation governing the removal 
of asbestos becomes more onerous and increasingly 
demanding.
Silverdell’s position in the market
Total market size
Silverdell’s market share
2000
50m
10%
2010
250m
24%
8981_Silverdell_AR10_Frt_TP 2.indd   6 10/12/10   10:52:47 Overview Business review Governance Financial statements
07 Silverdell Plc Annual report and accounts 2010
Coming into contact with asbestos can prove fatal. 
Working on or near damaged asbestos-containing 
materials or breathing in high levels of asbestos 
fibres, which may be many hundreds of times that  
of environmental levels, can increase the chances  
of getting an asbestos-related disease. When these 
fibres are inhaled they can cause serious diseases. 
According to the Health and Safety Executive (‘HSE’) 
there are four main diseases caused by asbestos: 
mesothelioma and lung cancer, which are fatal; 
asbestosis, which is not always fatal but can be  
very debilitating, and diffuse pleural thickening, 
which is classed as non-fatal.
Legislation: barriers to entry
Despite current legislation and extensive EU 
regulation, asbestos remains the greatest cause  
of fatalities in the workplace in the UK. Asbestos-
related diseases claim around 4,000 lives (according 
to HSE Statistics 2009) every year. As the incidences 
of asbestosis (scarring of the lung) and mesothelioma 
(cancer of the lung lining) have gradually risen,  
so have the number of asbestos-related claims.  
In 2008, the insurance industry paid out more than 
£200m in asbestos-related claims and the actuarial 
profession has warned that the cost of asbestos 
claims in the UK over the next 40 years will exceed 
£11 billion. The Board believes that rising claim 
volumes are likely to encourage employers in 
particular to manage asbestos in a more strategic 
fashion with the current mortality rate from 
asbestos-related diseases expected to continue  
to rise until around 2025 (Source: UK Asbestos 
Working Party Update 2009).
As a consequence, customers are now imposing 
increasingly strict criteria in selecting their preferred 
partners. In particular, customers are looking for 
partners who are capable of providing a full range  
of environmental services. This process is in turn 
creating significant barriers to entry. In particular, 
there is a widespread requirement for reputation 
and credibility, which offsets low start-up costs;  
the ability to offer scale and a full service capability, 
which is critical if a provider is to have full access  
to the market; a strong industry track record  
– a pre-requisite for cost effective insurance cover, 
among other matters; the hazardous nature of 
asbestos and the litigation risk; and importantly,  
a three year HSE Asbestos Licence, critical where 
customers are seeking a term framework of one 
year or more.
The future
It is estimated that asbestos removal in the UK  
will peak in 2025, with 85% of all asbestos having 
been removed by 2050, but these figures are  
based on conservative estimates. More stringent 
environmental legislation recently introduced will 
increase further the demands for specialist removal 
and remediation services. Since 2002, it is estimated 
that the asbestos consultancy and remediation 
market has experienced a compound annual growth 
rate of approximately 25%. To meet the needs  
of our growing list of customers, Silverdell has 
developed its business by increasing its supplier 
relationships and framework contracts with local 
authorities, utilities and insurance firms, and by 
increasing the volume of work performed under 
existing customer contracts. 
We believe that the next two decades will see a 
significant growth in demand for specialist services 
in the removal and remediation area. Meanwhile, 
tight legislation will ensure that there will be fewer 
specialist firms able to meet the growing demand 
and reinforces Silverdell’s position as the number 
one choice in the industry.
About Silverdell
Senior managers received  
over 500 hours of leadership 
coaching in 2010
About asbestos...
Approximately 4,000 
people die annually in 
the UK from asbestos- 
related diseases
8981_Silverdell_AR10_Frt_TP 2.indd   7 10/12/10   10:52:47 08 Silverdell Plc Annual report and accounts 2010
Overview
I am pleased to report another year of progress and 
a strong Group performance for 2010. 
During the last twelve months the Group’s trading 
and financial performance has continued to improve 
and, despite the challenging economic backdrop, 
Silverdell has been able to build on its position as 
the UK’s leading specialist environmental support 
service business. With a much stronger balance 
sheet and reduced cost base, the Group is financially 
in much better shape and ready for the next stage  
of its development. 
Strategy
As part of a widespread review of the business we 
unveiled in June a new strategy, ‘Protecting Lives, 
Creating Value’, which is an exciting strategy 
designed to take the Group forward and, at the 
same time, provide greater resilience in these 
challenging economic times. A greater focus on 
repeat order business and long-term contracts 
should provide us with a higher level of long-term 
earnings visibility.
In his Chief Executive’s Statement, Sean Nutley 
outlines the strategy in more detail and how  
it is already being implemented.
“  I am pleased to report 
another year of progress 
and a strong Group 
performance for 2010.”  
 
Stuart Doughty 
Executive Chairman 
chairman’s stat EmEnt
8981_Silverdell_AR10_Frt_TP 2.indd   8 10/12/10   10:52:50 Overview Business review Governance Financial statements
09 Silverdell Plc Annual report and accounts 2010
Group highlights
•  Gross profit margin up 1.4 ppts at 25.9% (2009: 24.5%)
•  EBITDA
1
 up 70% at £3.9m (2009: £2.3m)
•  Adjusted pre-tax profit
2
 up 317% at £2.5m (2009: £0.6m)
•  Net debt down £0.4m at £4.3m (2009: £4.7m)
1
  Earnings before interest, tax, depreciation and amortisation and also before goodwill  
impairment, share-based payments and non-recurring items.
2
 Before non-recurring items, impairments and amortisation (see Note 11).
Silverdell is now in a strong position to take 
advantage of new opportunities arising from ever 
more stringent legislation governing the industry 
and which should help grow our market position 
both here and overseas where blue-chip companies, 
under their Corporate and Social Responsibility 
obligations, require worldwide asbestos management 
processes to be consistent with those adopted  
in the UK.
Despite concern surrounding the UK government’s 
capital programme for the public sector, we believe 
maintenance and compliance solutions will still be 
required for large existing property portfolios. We 
will seek to exploit our wider geographic coverage  
to its best commercial advantage, particularly  
in light of increasingly onerous legislation and 
regulation governing the handling and treatment  
of asbestos and other notifiable waste.
Results
Revenues for the year ended 30 September were 
£56.7m (2009: £59.5m) with adjusted EBITDA  
of £3.9m (2009: £2.3m) and adjusted pre-tax profit 
of £2.5m (2009: £0.6m). The order book at  
31 October 2010 remains strong with £62m (2009: 
£57m (restated
1
) at 31 October 2009), with £34m 
secured for 2011. At the year end, the Company’s 
net debt was £4.3m (2009: £4.7m) on the back of 
continued delivery of operating cash flows and the 
tight control over capital expenditure.
1
  The Group’s method of calculating the order book was changed during 
the year to include estimates of future revenues for the remaining 
term of framework contracts. Previously, the order book only included 
framework contract revenues for the current financial year. In order  
to aid comparability, the comparative order book figures disclosed in 
the Group’s last annual report have been restated.
Board & People
We have made a great deal of progress over the  
last two years and the Group is well placed to take 
advantage of the opportunities that lie ahead.  
We also have a first rate leadership team, led by 
Sean Nutley, and I believe it is an appropriate time 
for me to relinquish my executive responsibilities  
to Sean. I will, therefore, become non-executive 
Chairman with effect from 1 January 2011 and look 
forward to continuing to play a role in the Group’s 
development in that capacity.
Our people and culture are an integral part of who 
we are and embody the duty of care ethos that  
is so important to how we run our business.
On behalf of the Board, I would like to express our 
gratitude to everyone in the Group for their hard 
work and dedication, and congratulate them on 
delivering an excellent set of results in extremely 
challenging economic conditions. 
Summary
This was a very good overall performance and  
we can be confident that our position in markets 
underpinned by the ongoing need for essential 
remediation and removal work will continue to 
stand us in good stead and I look forward to 
reporting on our progress in due course.
Stuart Doughty
Executive Chairman 
About Silverdell
Over 3,000 tonnes of asbestos-
containing materials will  
be removed from the Group’s 
largest nuclear contract
About asbestos...
In 2008 (the latest year 
with published data) 
there were 2,249 
mesothelioma deaths
8981_Silverdell_AR10_Frt_TP 2.indd   9 10/12/10   10:52:50 10 Silverdell Plc Annual report and accounts 2010
SEAN NUTLEy
Q&A w ItH CHIEF ExECUtIvE
you’ve been at Silverdell for over 20 years. How has 
the industry changed in that time?
The industry has changed significantly in the 20 years 
since I joined Silverdell as an asbestos operative,  
and Silverdell has contributed hugely to that change. 
We have set higher and higher standards by 
continually looking to build on what we have done. 
We are acutely aware of the legal requirements  
and we naturally adhere to them while at the same 
time looking at ways of working over and above  
the regulation requirements. 
“Silverdell has moved the industry forward and  
has improved the sector by setting higher standards 
by continually looking to upgrade and build on  
what it has done.”
What is the biggest challenge facing the industry 
right now?
The biggest challenge facing the industry is making 
people aware of the asbestos problem. Asbestos  
is seen as yesterday’s problem and a throwback to  
a time when building standards weren’t as strict as 
they are now. But the problem is very real and has 
the capacity to affect more people than we think. 
Asbestos is the biggest work place killer in the UK 
and around 4,000 people die from asbestos-related 
disease each year. 
you’ve been Chief Executive for two years. What’s 
the most important aspect of your job? 
Health and Safety is paramount to us and it’s 
integral to what we do. We risk exposure to asbestos 
and other waste material every day, therefore 
maintaining a strong H&S record is probably the 
most important aspect of the job. It also gives our 
customers piece of mind. I’ve also been in the 
industry a long time and understand the importance 
of maintaining a strong customer focus at a strategic 
level. This will ultimately drive our performance, 
deliver shareholder value and help us fulfil our 
potential.
Why ‘Protecting Lives, Creating Value’?
The real value or reward of this strategy is somebody 
not dying as a consequence of the work we carry 
out. That is why strategy is important for us. The 
value is twofold; it’s about creating shareholder 
value and it’s also how it makes you feel when 
you’ve done a job and you’ve made a difference, 
which is not financially related, but arguably more 
fulfilling. ‘Protecting Lives, Creating Value’ resonates 
with what we do, which is fundamentally the 
business of protecting life.
What more could be done to cut the numbers  
of fatalities from asbestos?
Estimated deaths from asbestos at peak 2025 will  
be between 6,000 and 10,000 people per year.  
So asbestos awareness is key: from employers  
to employees, and right across the general public.  
We need to make people aware that it is not  
a problem of the past: it’s still a problem today  
and it’s going to be around for many years. 
“We are auditable, open and transparent. I think  
we can demonstrate that better than any other 
company in the asbestos industry.” 
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11 Silverdell Plc Annual report and accounts 2010
Q&A w ItH CHIEF ExECUtIvE
What is happening with current legislation 
governing asbestos and how is it changing? 
The legislation is fundamentally the same but it’s 
more about compliance with Health and Safety  
and people being made aware of their own 
obligations. We are also seeing evidence of 
companies being fined for failure to comply with  
the asbestos regulations. Asbestos regulations  
apply to any owner-occupier who has asbestos in 
their premises. It does not just apply purely to the 
asbestos industry.
What can Silverdell do better than any other 
company in the asbestos industry?
We are auditable, open and transparent and I think 
we can demonstrate that better than any other 
company in the asbestos sector. We are the largest 
quoted company doing what we do in the UK and 
we have a much greater pool of resources to deal 
with any size of contract. 
“A business that can get by is a good business, a 
business that can do well in a recession is exceptional, 
and I think we will do more than just get by.”
Will the cuts in public sector spending adversely 
impact the business?
I am looking forward to the challenges ahead 
because I think we have an opportunity to show just 
how resilient we are as a business. It will be an even 
tougher environment than we have seen before. 
Our order book split is 65% private and 35% public 
sector. I think the balance of our work streams 
across the different sectors is spot on.
How much of Silverdell’s business is overseas  
and do you expect this to grow?
We expect to secure some overseas work in 2011 
but it will be more projects based rather than us 
setting up an overseas operation, mostly through us 
following our blue-chip client base. It is considered 
that the UK leads the world in its expertise in 
asbestos removal and with the growing global CSR 
requirements, more and more overseas companies 
are gravitating towards the UK due its expertise  
and experience. Our skills travel well and I am more 
than happy to take those skills abroad because  
it fits with our strategy. 
Where and how do you see the business growing  
in the next 12 months?
Any significant organic growth we have right now  
is most likely going to be overseas. It could also be 
through a UK acquisition. There are some interesting 
businesses out there that we would like to have  
a look at. 
What are you doing with the British Lung 
Foundation?
The British Lung Foundation is our chosen charity 
partner. We are working together to protect life 
through asbestos awareness. I am really excited 
about working with them and I am looking forward 
to us contributing to their work. Our employees  
are busy across the business organising fund raising 
initiatives including a sky dive next year.
About Silverdell
Mark Roberts, Silverdell Group  
Sales Director, enjoys his  
second year as Chairman of the 
Asbestos Removal Contractors 
Association (‘ARCA’)
About asbestos...
Someone dies every 
four hours from 
mesothelioma in  
the UK
8981_Silverdell_AR10_Frt_TP 2.indd   11 10/12/10   10:52:53 12 Silverdell Plc Annual report and accounts 2010
dE li VEring Valu E
PRINCE CHARLES HOSPITAL 
REFURBISHMENT
hE alth and 
wE llb Eing c Entr E 
rE furbishm Ent  
to prot Ect lif E 
Silverdell (UK) Limited is a contracting division of 
Silverdell Plc specialising in asbestos management 
and remediation works. Prince Charles Hospital, 
located in Merthyr Tydfil, Wales has approximately 
430 beds and has secured funding to be spent on 
much needed ward refurbishment work including 
removing asbestos and addressing essential health 
and safety issues to meet modern health standards. 
The total value of the redevelopment is £42m as 
part of the Designed for Life - the strategy adopted 
in Wales to create world class healthcare and social 
services by 2015.
Silverdell was appointed by principal contractor 
Wilmott Dixon for the refurbishment to undertake 
the asbestos removal programme. The complete 
works are being carried out in 6 phases, all of which 
will be carried out whilst the hospital remains fully 
operational. Silverdell’s core responsibilities on site 
form part of the ward refurbishment programme, 
which in turn, is part of the ‘Designed for Life’ 
programme – a strategy developed to improve the 
quality of infrastructure within the NHS in Wales.
Paul Lane, Senior Building Manager for Willmott 
Dixon said; “It is a fantastic project to work on 
because the refurbishment will give a new lease  
of life to these important community facilities.  
The hospital provides acute emergency and elective 
medical and surgical services and seven operating 
theatres. The hospital also provides sub-regional 
oral and maxillo facial services, a full range of locally 
provided and visiting specialist outpatient services 
and has an extensive range of diagnostic services 
and facilities including 64 slice CT, Nuclear Medicine 
and MRI. State of the art facilities are provided 
within the Radiology Department and the hospital  
is close to being film less with digital images and 
reports available to clinicians across the site. Many 
of the Trust’s corporate and management offices  
are located on this site, along with clinical staff 
residences.”
In addition to the ward refurbishment programme, 
Laing O’Rourke are managing the foyer development 
works to improve access to the hospital together 
with refurbishing the existing A&E facility which  
will provide a new Minors assessment facility and 
Orthopaedic Outpatients department. Silverdell  
are supporting both primary contractors in their 
work to undertake asbestos removal throughout  
the building in line with the planned scope of works.
 
8981_Silverdell_AR10_Frt_TP 2.indd   12 10/12/10   10:52:55 13 Silverdell Plc Annual report and accounts 2010
Silverdell’s Regional Director, Dean Howe said; 
“During peak activities, Silverdell have up to 50 full 
time operatives and managers on site, co-ordinating 
the remediation works. We have been on site since 
2007 and have upheld an accident free site in all  
that time. Silverdell have delivered a comprehensive 
safety strategy that protects both its own personnel 
and the hospital staff, visitors and patients in line 
with our duty to protect people, assets and 
reputation. Through this strategy we have carried 
out works with minimal disruption to daily life in the 
hospital, based on clear safety principles. Silverdell 
have supported both primary contractors in their 
objective of a seamless delivery of transformation 
and improvement, creating a vibrant and efficient 
hospital.”
Overview Business review Governance Financial statements
Project 
Transformation  
and improvement 
to key community 
health facility
People 
Providing  
peace of mind 
to partners and 
stakeholders 
Business 
Asbestos 
remediation and 
enabling works 
8981_Silverdell_AR10_Frt_TP 2.indd   13 10/12/10   10:52:57 14 Silverdell Plc Annual report and accounts 2010
ASPIRE DEFENCE: ASBESTOS ROADSHOW
dE li VEring Valu E continued
 imp r o Ving 
conditions for  
th E british army
8981_Silverdell_AR10_Frt_TP 2.indd   14 10/12/10   10:52:57 Silverdell Plc Annual report and accounts 2010 15
As a part of the MoD’s Project Allenby/Connaught, 
Aspire Defence is transforming the Army garrisons 
across Aldershot and the Salisbury Plain by  
providing new and refurbished living and working 
accommodation for nearly 19,000 soldiers. Aspire 
Defence has therefore become a key stakeholder  
in the safe removal and management of asbestos 
across these garrisons. Through its facilities 
management arm of the business, Aspire Defence 
Services Limited (ADSL) together with their selected 
partners Redhills, Silverdell and SAFE they have 
been undertaking all necessary asbestos 
management activities across the portfolio, to 
ensure that they comply with current statutory 
legislative requirements. 
During September 2010 ADSL, Redhills, Silverdell 
and SAFE embarked on a series of asbestos 
roadshows to showcase the robust asbestos 
management in place. The event attracted 
personnel from a variety of employers and 
disciplines across the Garrisons including the 
military and soldiers returning from operations, 
project managers, cooks, cleaners, mess managers 
and construction contractors. 
Here awareness was further raised of the extensive 
infrastructure in place to support the pro-active 
management of asbestos across the garrisons, this 
included a variety of practical demonstrations and 
interactive activities supported by our experienced 
consultants. 
The success of the asbestos roadshow was evident 
by the 150 strong daily footfall for each on-site 
session over the four consecutive days, together 
with the positive feedback received from attendees. 
The roadshows were valuable to all, in particular  
the charity raffle held in support of Combat Stress,  
a leading military charity specialising in the care  
of Veterans’ mental health.
Overview Business review Governance Financial statements
Project 
Showcase  
robust asbestos 
management
People 
600+ attendees
Business 
Transforming  
the army garrisons 
across Aldershot 
and the Salisbury 
Plain
8981_Silverdell_AR10_Frt_TP 2.indd   15 10/12/10   10:52:58 16 Silverdell Plc Annual report and accounts 2010
Working on the project which commenced in 2009, 
Kitsons have provided access solutions above the 
swimming pool, above the theatre seats, around  
the ice rink and up into the fly-tower above the 
stage to enable remediation and refurbishment 
works. Asbestos remediation have proven to be an 
important part of the enabling works, where Kitsons 
have used detailed method statements to ensure 
protection, commitment to quality and maintain 
Morgan Sindall’s strong reputation for excellence. 
Paul Dolan, Divisional Director for Kitsons said;  
“The range of works programmed have been varied 
and complex. Effective management and planning 
has been critical to ensure compliance, safe working 
conditions whilst working to a tight budget. The 
value of the works for the project will be in the 
order of £1m on completion.” 
Duncan Kidd, Operations Manager for Morgan 
Sindall said; “We see the centre as being a significant 
boost to both local and regional communities. 
Kitsons have been a key partner working 
collaboratively to enable the centre to re-open  
to the public in early 2011.”
Kitsons were appointed by the Principal Contractors 
Morgan Sindall to provide access solutions and 
remove asbestos containing materials as part of  
the refurbishment of Billingham Forum. This large 
multi-disciplinary leisure complex refurbishment 
originally built in the 1960’s will retain and enhance 
the existing infrastructure. 
 
Duncan Kidd Operations Manager for Morgan 
Sindall said; “The pool is being modified to standard 
size as part of the development programme, with  
an additional training pool & retained learner pool. 
Changing rooms, toilets & spectator areas are  
being refurbished; the gym is to be extended  
& improved changing rooms will be provided; 
structural improvements are being carried out to 
the theatre & a new entrance is being created. The 
ice rink will benefit from a new ice pad, an improved 
café, and upgrading of the spectator area, toilets  
& skate hire area and the indoor 2 lane bowls court 
will be enhanced through decoration & provision  
of a new bowling floor.”
brE athing n Ew lif E 
into a r Egional 
lE isur E facility dE li VEring Valu E continued
BILLINGHAM FORUM COMMUNITy  
CENTRE DEVELOPMENT
8981_Silverdell_AR10_Frt_TP 2.indd   16 10/12/10   10:52:59 17 Silverdell Plc Annual report and accounts 2010
Overview Business review Governance Financial statements
17
Project 
Leisure facility 
refurbishment  
for community
Business
Access and  
asbestos  
enabling  
works
People 
Protecting 
reputation for 
community, 
contractors  
and client
8981_Silverdell_AR10_Frt_TP 2.indd   17 10/12/10   10:53:00 18 Silverdell Plc Annual report and accounts 2010
CHIEF ExECUtIvE’S StAt EMEnt
“ We are building a business 
that should be resilient to 
the challenging economic 
conditions but will also be 
well placed to benefit from 
the economic upturn when 
it arrives.” 
 
Sean nutley 
Chief Executive
Overview
Our markets remain competitive, particularly in 
terms of the public sector, but we are confident  
that we are well placed to benefit from ongoing 
changes in the industry with regards to legislation 
surrounding asbestos, and expect growth in the 
private sector to counteract any drop in activity  
in the public sector.
The UK asbestos removal industry is fragmented 
and competition comes from a number of smaller 
licensed operators looking to undercut on price. 
However, Silverdell’s competitive advantage has 
been built on our ability to understand the business 
needs of our customers who are increasingly looking 
for delivery partners with a high level of expertise 
and technical know-how to complete the job safely, 
quickly and effectively.
8981_Silverdell_AR10_Frt_TP 2.indd   18 10/12/10   10:53:02 Overview Business review Governance Financial statements
19 Silverdell Plc Annual report and accounts 2010
Silverdell’s competitive advantage has been 
developed over many years and is predicated on  
our ability to understand the complex business 
needs of our customers and to develop safe, cost 
effective and innovative solutions to meet their 
business requirements. Our commitment to 
delivering a full-service offering, from premium 
consulting through to construction services and 
remediation, reinforces Silverdell’s position as the 
number one choice for the removal of asbestos  
and other hazardous or notifiable material. 
As a consequence, we typically now contract 
directly with a greater proportion of our blue-chip 
client base. 
There are fewer and fewer companies with the size 
and scale to be able to take on the major jobs and 
which also meet the exacting standards and 
demands of our customers.
We have delivered a good performance, 
consolidating our position as the UK’s pre-eminent 
remover of asbestos and other notifiable waste 
material. We have also continued to build on our 
excellent track record of delivering environmental 
services solutions across a diverse number of 
markets.
Strategic review
We have made significant progress in consolidating 
our position as one of the UK’s leading specialist 
environmental support service companies, by 
building market share and extending our range  
of services and capabilities.
Building on that success, we unveiled in June an 
updated strategy, ‘Protecting Lives, Creating Value’, 
that has been designed for the next stage of our 
corporate development. 
Customers are very often looking for a one-stop 
service partner when it comes to procuring services. 
We therefore differentiate ourselves from the 
competition by striving to provide a premium 
service across a spectrum of complementary 
services, from on site consultancy through to 
construction and remediation.
The split between the public and private sector  
is currently 35% and 65% respectively, which is in 
line with our strategy. Our long list of blue-chip 
customers includes oil majors, a large broadcasting 
organisation as well as large high street retailers  
and banks. 
We will also seek further penetration and 
opportunities in the public sector, which has an 
enormous portfolio of properties to service. While 
we expect the public sector to be affected by the 
recent spending cuts, the detection of asbestos falls 
under non-discretionary spending which means  
it has to be treated with the upmost care. 
‘Protecting Lives, Creating value’
Protecting lives and creating value is central to  
what we are striving to achieve as a Group, with the 
cost of asbestos-related claims expected to exceed 
£11 billion over the next 40 years, providing us  
with considerable opportunities over the long-term. 
Our strategy is to move the business from being  
a leading asbestos removal contractor and 
remediation business to provide high quality 
specialist environmental support services and 
regeneration, and delivering innovative solutions 
which meet our clients’ requirements safely and  
cost effectively.
Back in June the Board set the Group a number  
of challenging targets for the medium-term:
•  To grow our order book ahead of organic  
revenue growth;
•  To drive revenue growth year on year ahead  
of market growth;
•  To grow the EBITDA margin to 10%;
•  To maintain working capital at not more  
than one month’s revenue; and
•  To grow the Consulting business to 15% of  
Group revenues.
About Silverdell
Redhills opens new offices  
in Glasgow and Reading
About asbestos...
Experts predict that we will face  
a mesothelioma epidemic 
between 2011 and 2015 as the 
death toll rises over the next 
decade
8981_Silverdell_AR10_Frt_TP 2.indd   19 10/12/10   10:53:03 20 Silverdell Plc Annual report and accounts 2010
I am pleased to report that we are making 
considerable progress in all of these areas. The 
strategy has been designed to deliver long-term 
profitable growth and build market share in our  
core markets while developing our Consulting and 
Remediation brands in the regulatory, compliance 
and environmental markets, as a premium service. 
This also ensures that our customers, service 
partners, staff, suppliers and investors have peace  
of mind when choosing Silverdell.
In order to achieve this, our strategic approach has 
been to drive performance through:
•  Further development of our capabilities in other 
regulated environmental and compliance markets;
•  Development of our position in industrial and 
power generation markets through longer-term 
framework contracts;
•  Development of our existing customer 
relationships to generate new business, 
particularly in Consulting; and
•  Leveraging of our capabilities in consultancy  
to other areas of the business.
w hy a ‘Duty of Care’?
The ‘Duty of Care’ ethos permeates everything we 
do as a business, from the products and services  
we offer to our clients, right through to the attention 
to detail our dedicated team of operatives give to 
the contracts we undertake.
The ‘Protecting Lives, Creating Value’ strategy  
has been designed to empower and retain the best 
people under a common purpose. By better 
engagement with our employees and customers  
we can create a culture that will bring long-term 
rewards for all of our stakeholders. 
In most cases we are protecting the lives of those 
people that are working within a particular property 
or asset, but importantly we are also working to 
protect the reputation of our customers. 
CHIEF ExECUtIvE’S StAt EMEnt continued
Objectives
For the year ahead, we plan to further strengthen 
the Silverdell business and create shareholder 
value through:
The continued rollout of our ‘Protecting Lives, • 
Creating Value’ strategy internally and externally; 
Developing our product and geographic • 
capability through new service offerings and, 
possibly, through bolt-on acquisitions;
Improving existing client relationships by offering • 
bundled services with unmatched quality; and
Continuing to improve cost efficiencies and  • 
cash management across the Group.
Summary
Our ‘Protecting Lives, Creating Value’ strategy is 
designed to take the company on to the next stage 
of its development. We are building a business that 
should be resilient to the challenging economic 
conditions but will also be well placed to benefit 
from the economic upturn when it arrives.
The economic environment remains challenging  
but, with a strong operational business, a much 
reduced cost base and a strategy for the ongoing 
development of the Group, we are looking to the 
future with confidence.
Strategy
8981_Silverdell_AR10_Frt_TP 2.indd   20 10/12/10   10:53:03 Overview Business review Governance Financial statements
21 Silverdell Plc Annual report and accounts 2010
What we said
To grow the order book ahead • 
of organic revenue growth. 
 
 
 
 
 
 
 
 
 
To drive revenue growth year • 
on year ahead of market 
growth. 
 
 
 
 
 
 
 
 
 
 
Grow EBITDA margins to 10%. • 
 
 
 
 
 
 
Maintain working capital  • 
at one month’s revenue. 
 
Grow Consulting revenues  • 
to 15% of Group revenues.
What we’ve done
On track. Despite the • 
economic environment we 
have improved our order book 
since last year. More than 90% 
of our future order book is 
comprised of framework, or 
cost-plus, type relationships 
backed by contracts normally 
between three and five years 
in length. This provides 
greater visibility for the future. 
On track. The UK specialist • 
asbestos market has seen 
further contraction this year 
to approximately £250m  
(from last year’s estimate of 
£300m) primarily as a result  
of retrenchment in property 
development and retail 
refurbishment as well as some 
nervousness within the public 
sector to commit maintenance 
expenditure prior to the 
Spending Review. 
We made good progress here • 
during 2010 with the Group 
EBITDA margin increasing  
to 6.9% (2009: 3.9%). 
 
 
 
We continued to achieve this • 
in 2010. Our focus on cash  
is relentless. 
The Consulting business has • 
been re-shaped and is now 
delivering greater profitability 
with excellent growth 
opportunities. Consulting is 
about 11% of Group revenues.
The future
We retain the capability to • 
carry out large fixed price 
project work. Our strategy  
is to win work in the UK and 
overseas that will underpin 
our long-term growth. This is 
our most challenging strategic 
objective and we remain 
committed to its delivery. 
 
 
The Board believes that the • 
Group is well placed to take 
advantage of a recovery in  
the market and in its ability  
to grow both organically  
and by acquisition. In the 
immediate term, the organic 
growth opportunities within 
the specialist asbestos market 
appear strongest outside  
the UK. 
 
 
In the medium term, Silverdell • 
considers that its current 
overhead structure can 
support a bigger business  
such that improvements at  
the gross profit level will fall 
through to EBITDA. 
Management of cash and • 
working capital will remain  
a strategic priority. 
Our plan for the medium term • 
remains to grow the Consulting 
division both organically and 
by acquisition. 
About Silverdell
Redhills exceed environmental 
targets in 2009
About asbestos...
30,000 people are thought to 
have died of mesothelioma 
already; a further 90,000 are 
expected to die of the disease  
by 2050
8981_Silverdell_AR10_Frt_TP 2.indd   21 10/12/10   10:53:03 22 Silverdell Plc Annual report and accounts 2010
Public sector
The public sector is a key part of our portfolio of 
work. There is a substantial asbestos legacy across 
the whole range of public sector property, including 
local government buildings and social housing, 
schools, colleges and hospitals as well as defence 
establishments. The public sector spend on 
maintenance and refurbishment projects exceeds 
£20 billion per year in addition to specific new build 
projects such as ‘Building Schools for the Future’. 
For Silverdell Plc, the share of total remediation 
revenues generated by public sector work increased 
39% in 2010 (2009: 28%) while the share of 
consulting revenues was 52% (2009: 60%).
Local government 
We have been successful in winning a number of 
local government framework contracts although the 
local government and housing share of remediation 
revenues was flat at 11% (2009: 11%). We have 
retained a number of existing contracts and won 
new ones, specifically in Greater Manchester  
where we now work for the central procurement 
consortium. Significant contract works are also 
carried out in North Wales, London, West Midlands 
and Scotland. Our unique offering, which focuses  
on the needs of the customer and the welfare  
of its workforce, has been key to our success in 
winning a 4 year contract with one of the UK’s 
leading procurement consortiums providing housing 
remediation services across the North West. 
With regard to Consulting we have had an excellent 
year winning contracts with a number of social 
landlords as well as local and central government 
agencies, providing annual and bespoke surveys, 
project management as well as analytical services. 
Local government revenues represented 21% of  
our total Consulting revenues in 2010 (2009: 15%). 
Government spending pressure on Registered Social 
Landlords is likely to result in increased spending on 
maintenance and refurbishment, which represent  
a revenue opportunity for both the Remediation 
and Consulting divisions.
BUSINESS REVIEW
CHIEF ExECUtIvE’S StAt EMEnt continued
Consulting 2010
2010 2009
1 Local Government 11% 11%
2 Defence 17% 13%
3 Health & Education 11% 4%
4 Power, Utilities, Industrial 29% 34%
5 Construction 15% 12%
6 Retail, Rail, Commercial 18% 26%
Remediation 2010
1
2
3
4
5
6
1
2
3
4
5
6
2010 2009
1 Local Government 21% 15%
2 Defence 11% 22%
3 Health & Education 21% 23%
4 Power, Utilities, Industrial 10% 6%
5 Construction 5% 4%
6 Retail, Rail, Commercial 33% 30%
8981_Silverdell_AR10_Frt_TP 2.indd   22 10/12/10   10:53:03 Overview Business review Governance Financial statements
23 Silverdell Plc Annual report and accounts 2010
Health and Education
The share of total remediation revenues from 
Health and Education rose to 11% (2009: 4%). While 
the ‘Building Schools for the Future’ programme has 
been reined in during the year, we anticipate that 
the need to refurbish older school buildings will now 
be required to keep them habitable. Similarly, we 
are working with a number of universities across  
the UK to ensure that their property estate is fit for 
purpose. Our approach, which is focused around 
providing a value-added service that is structured 
directly according to the customer’s needs, means 
that we have continued to develop our customer 
base with a number of new contract wins. We  
have also been involved in significant investments  
to upgrade ageing health facilities, such as the 
Manchester Joint Hospitals project as well as 
winning a 3 year maintenance term contract with  
an NHS Trust in the West of Scotland. We continue 
to work with NHS Trusts across the United Kingdom 
to ensure a safer environment for workers and 
patients. 
For Consulting, Health and Education work made  
up 21% of its revenues (2009: 23%), with key work 
wins in the South, South East and Western regions 
which all secured new healthcare customers.
Defence
The Defence share of revenues for Remediation  
was 17% (2009: 13%) and for Consulting it was  
11% (2009: 22%). The main element of our defence 
operations is the Regional Prime Contracts 
relationship, which is a 7 year framework 
arrangement. Silverdell plc is working with Aspire 
Defence as part of a 35 year plan to develop and 
refurbish much of the MoD estate. Also, under our 
Kitsons brand, we offer specialist environmental 
support to a major nuclear research establishment 
as it seeks to modernise its technical facilities. 
The Consulting segment has also carried out works 
within several key locations for the defence sector 
including its ongoing works on Salisbury Plain and 
also with garrisons in Kent.
Private Sector
Power Generation, Utilities and Industrial
In 2010, 29% (2009: 34%) of Silverdell Plc’s 
Remediation revenues were derived from Power 
Generation, Utilities and Industrial customers.  
Key to this was Kitsons’ role in the construction  
and commissioning of a new power station in the 
South West as well as remediation works at a power 
generation site in Kent as part of a number of 
long-standing relationships within the power, oil  
and gas sector. We have also continued to build on 
our reputation as a key industrial services provider 
to the oil, gas and nuclear industries. During the  
year we have won a prestigious industrial services 
contract at a strategic gas terminal in Wales as  
well as the contract to provide thermal insulation 
services to a palm oil refinery in the North West.
Silverdell Plc is the incumbent provider of asbestos 
removals and industrial scaffolding services at 
Chapelcross Power Station in a collaborative 
decommissioning solution with Magnox North to 
remove more than 3,300 tonnes of asbestos hazard.
With regard to Utilities, the nationwide programme 
to upgrade the utilities infrastructure presents an 
opportunity for Silverdell Plc to develop its service 
offering both through standalone projects and  
as a part of a number of ongoing maintenance 
frameworks with water and gas providers across  
the United Kingdom.
Key industrial clients include manufacturing 
businesses where we have a number of framework 
relationships, including a strategic investment for  
a major pharmaceuticals company in Scotland.
In our Consulting business, Power Generation, 
Utilities and Industrial customers comprised 10% 
(2009: 6%) of revenues. Redhills commenced a new 
2 year framework contract at a nuclear power 
facility in Scotland and continues to work within 
Power Stations across the West. Several national 
utilities contracts are serviced as well as Electricity 
and Water suppliers across the South of England.
About Silverdell
15% of the workforce of Kitsons  
have served over 15 years
About asbestos...
There are 33%  
more deaths from 
mesothelioma than 
from cervical cancer
8981_Silverdell_AR10_Frt_TP 2.indd   23 10/12/10   10:53:03 24 Silverdell Plc Annual report and accounts 2010
BUSINESS REVIEW continued
CHIEF ExECUtIvE’S StAt EMEnt continued
Construction
Construction’s share of total Remediation revenues 
rose in 2010 to 15% (2009: 12%). While the 
Construction sector generally has seen a continued 
slow-down during 2010, Silverdell Plc benefitted 
from a small number of major contracts. A 
significant contribution to this performance was 
works carried out for Shell UK at a landmark building 
in London. We have also carried out fixed price 
works for a major West London hotel during the 
year. Both of these contracts saw the recognition  
by our customers of the benefits of the single source 
solution that Silverdell Plc provides. As a result of 
this, Consulting’s Construction share of revenues 
rose to 5% (2009: 4%).
Retail, Rail, Commercial, Other
For 2010, this sector made up 18% (2009: 26%)  
of Remediation segment revenues and 33%  
(2009: 30%) of the Consulting segment revenues.
Retail store refurbishment forms a key part of our 
Remediation strategy and Silverdell Plc is well 
positioned for a recovery in this market. Similarly, 
we have developed our Consulting offering to our 
Retail customers, winning works with a major 
supermarket retailer during the year. We are 
increasingly working with outsourced Facilities 
Maintenance providers such as Carillion and  
Telereal Trillium to provide a seamless service that 
ensures the customer’s property is maintained to 
the highest standards of asbestos safety with the 
minimum of disruption to their own business.
Our work with key rail operators is a small, but 
highly specialised part of our service offering and 
the commitment of the new Coalition government 
to the delivery of a number of key rail infrastructure 
projects present Silverdell Plc with excellent 
opportunities in both Remediation and Consulting. 
Within Consulting, we have opened a new office  
in Newcastle to support the local rail contract.
Silverdell UK has continued to provide services to  
a number of major insurance companies, conducting 
remediation and Consulting operations following 
accidental damage. Silverdell UK provides a network 
that gives nationwide coverage and offers a 24/7 
emergency call-out to both residential and 
commercial properties. The key to the success of 
this relationship has been excellent responsiveness 
without compromise to our high quality service 
provision.
Within our Consulting business we provide a robust 
consultancy service to a rail system within the  
North East as well as a national contract with a rail 
FM company. We provide consultancy services to  
a number of major insurance companies throughout 
the UK and trade strongly with many national well 
established retailers including opticians, chemists, 
supermarkets and banks.
Sean nutley
Chief Executive
8981_Silverdell_AR10_Frt_TP 2.indd   24 10/12/10   10:53:03 Overview Business review Governance Financial statements
25 Silverdell Plc Annual report and accounts 2010
“ The Group has renegotiated  
its loan facilities on 
improved terms, less 
constraining covenants  
and over a longer term.” 
 
Ian Johnson 
Chief Financial Officer
financial r EViEw Group turnover decreased slightly by 4.7% to 
£56.7m (2009: £59.5m). However, gross profit was 
increased slightly to £14.7m (2009: £14.6m) and the 
gross margin percentage therefore increased by  
1.4 percentage points (ppts) to 25.9% (2009: 24.5%). 
Administration costs fell by £1.5m to £11.6m  
(2009: £13.1m). Operating profit
1
 almost doubled 
compared to last year at £3.1m (2009: £1.6m). 
Finance charges were £0.7m (2009: £1.2m), as a 
result of lower average levels of net debt and lower 
arrangement fee amortisation. Profit before tax
1
 
improved by 317% at £2.5m (2009: £0.6m).
The tax charge for the year was £1.1m (2009: tax 
credit of £0.8m). The effective corporation tax rate 
is 60% (2009: 12.0%), but is 37% excluding prior year 
adjustments (2009: 9%). Profit after tax
1
 was £0.7m 
(2009: £0.7m) and adjusted earnings per share
2
 
was up slightly on last year at 0.9 pence (2009:  
0.8 pence). As for the prior year, the Directors do 
not propose a dividend be paid for the year ended 
30 September 2010. 
Net debt at 30 September 2010 was down by £0.4m 
at £4.3m (2009: £4.7m) whilst gearing was down  
3 ppts at 23% (2009: 26%). Within this, a working 
capital outflow of £2.0m (2009: inflow of £5.2m) 
was driven by the timing of certain trade-related 
accruals that were held at the end of 2009. Capital 
expenditure was flat compared to last year at  
£0.4m (2009: £0.4m). The Group renegotiated its 
loan facilities during the year on improved terms, 
less constraining covenant ratios and over a longer-
term. The Group now has sufficient facilities to fund 
its plans out to March 2014.
Following the exercise in 2008 to reduce the par 
value of one ordinary share (from 10 pence to  
1 pence) and resultant creation of a new class  
of 1 pence deferred shares, we effected the 
cancellation of these deferred shares during 2010  
as promised last year.
The Group uses derivatives designed to protect  
it from the interest rate risk that arises in respect  
of its borrowings, for the majority of which the 
Group applied hedge accounting in accordance with 
IAS 39. At 30 September 2010, a liability was held  
on the balance sheet of £0.1m (2009: £0.2m) in 
respect of these derivatives. All assets, liabilities 
(including borrowings) and cash flows in the year 
were denominated in sterling and accordingly the 
Group did not have an exposure to currency risk and 
has no related hedging products. A full discussion  
of the financial risks to which the Group is exposed, 
along with the definitions of its Key Performance 
Indicators, is included in the statements on Key  
Risks and Mitigations on page 26 and Corporate 
Governance and Risk Management on page 34.
Ian Johnson
Chief Financial Officer 
1
  Before non-recurring items, impairments and amortisation  
(see Note 11).
2
  Before non-recurring items, impairments, amortisation  
and share-based payments (see Note 12).
8981_Silverdell_AR10_Frt_TP 2.indd   25 10/12/10   10:53:04 26 Silverdell Plc Annual report and accounts 2010
Acquisition effectiveness
The Group’s strategy acknowledges that acquisitions 
may be required to enhance the Group’s capability 
in certain areas. There is a risk that an acquisition 
will fail to meet its strategic, financial or operational 
objectives. The Board has set key investment criteria 
that must be made by any acquisition target. All 
appropriate due diligence will be performed and 
contractual protections sought from the vendor  
to safeguard the Group’s interests. The Board will 
review the requirement to retain the target’s key 
personnel and detailed integration plans will be put 
in place for implementation post acquisition.
People risk
Our people are our greatest asset and provide the 
basis for our competitive advantage. We will seek  
to ensure that our operatives are trained through 
the application of a comprehensive training strategy 
and a policy that offers sufficient remuneration and 
incentives to retain our best people, consistent with 
the market rates. Recruitment processes are applied 
that are appropriate to the seniority of the position 
being filled and to minimise the risk of an unsuitable 
appointment.
Financial risks
Interest rate risk
The Group finances its operations through a mix  
of equity and debt funding. All borrowings are 
denominated in sterling, predominantly at variable 
rates of interest. Accordingly, the Group has  
hedged a proportion of its interest costs through  
an interest rate swap as mitigation against the risk  
of rising variable rates. The Board reviews the 
appropriateness of this policy from time to time 
taking into consideration expectations for future 
interest rates and the underlying level of 
borrowings.
Credit (including Counterparty) risk
Credit risk arises from the risk of having credit 
exposures to customers, including outstanding 
receivables and retentions. The Group monitors the 
credit ratings of all customers with which it has, or 
may have, significant credit balances and takes any 
appropriate action it considers necessary, including 
obtaining guarantees and ensuring that no single 
customer failure would present a significant risk to 
the achievement of the Group’s strategic objectives. 
kE y risks and mitigations
Introduction
The identification, assessment and management  
of risk is fundamental to the achievement of the 
Group’s strategic objectives. The principal risks to 
the business, as determined by the Board, are set 
out below. The Board recognises that the nature  
and scope of the risks faced by the business can 
change and so periodically reviews the risks and the 
controls in place to mitigate them and/or transfer 
them to third parties.
Market-related risk
The Group is exposed to the risk of the general 
macro-economic environment as well as Government 
spending priorities. We monitor the forward order 
books to ensure that appropriate resources are 
allocated to fulfil orders and procure new work 
either from existing clients or new customers.
Regulatory risks
The Group operates in a sector overseen by  
a number of environmental regulators. As such,  
the regulatory landscape is constantly changing, 
increasing the risk of non-compliance and the 
resultant reputational damage that may arise.  
We remain fully committed to our teams being 
appraised of any changes in the regulatory 
framework through an extensive training 
programme, outlined on page 32. We are members  
of all the recognised trade associations in the 
sectors we operate in and in particular, one  
of our senior executives is currently Chairman  
of the Asbestos Remediation trade body, ARCA.
Contractual risk
The Group operates in a sector where fixed-price 
contracts are common and this may result in  
a loss arising from a failure to properly reflect the 
operational risks in the contract price and terms.  
All significant contracts are reviewed by the 
Executive Directors and all reasonable efforts  
are made to consider the potential extent of the 
work involved and the consequent risk of increased 
cost to provide reasonable certainty that the  
Group has the capacity and capability to meet  
the requirements of the contract.
8981_Silverdell_AR10_Frt_TP 2.indd   26 10/12/10   10:53:04 Overview Business review Governance Financial statements
27 Silverdell Plc Annual report and accounts 2010
Counterparty risk arises from holding cash and cash 
equivalents with financial institutions. The Group 
controls this risk by ensuring that it enters into 
relationships only with highly credit-rated financial 
institutions.
Liquidity risk
Liquidity risk is the risk that the Group does not have 
sufficient cash resources to meet its commitments, 
whether short- or long-term. The Group has a 
mixture of borrowing facilities, such as an overdraft 
to provide short-term flexibility as well as a three-
year long-term facility arrangement. The Group 
prepares a rolling 13-week cash flow forecast which 
is updated every two weeks which is reviewed  
by both management and the Board to consider 
whether the Group’s cash resources are sufficient.
Covenant risk
The Group must comply with a number of financial 
covenants as the conditions of its banking facility. 
The Group monitors compliance with its covenants 
on an actual and forecast basis at each Board 
meeting.
Treasury risk
Treasury risk includes the risk of unauthorised,  
or unsuitable, transactions. The Group operates 
under a strict mandate in respect of its cash 
disbursements and all financial derivative contracts 
must be reviewed and approved by the Board. The 
Group does not use derivative financial instruments 
for speculative purposes. All new bank accounts  
or facilities and all new relationships with financial 
institutions must be approved by the Board.
The Group does not have an exposure to foreign 
currency risk.
Health & Safety
Our employees operate on construction sites and 
risk exposure to asbestos and other hazardous 
materials. As such there is a significant threat to 
personal safety. Health and Safety is the Board and 
management’s highest priority. We monitor and 
manage our safety processes and ensure that 
policies are reviewed and communicated at all 
levels. All staff are of the highest industry standard 
through our internal training consultancy, SAFE.  
The Company also takes out appropriate insurance 
policies.
Key Performance Indicators (‘KPIs’)
The Board monitors the performance of the Group 
by regular reference to a small number of KPIs  
which are:
 Adjusted EBITDA: this is earnings before • 
amortisation and impairment costs in respect  
of intangible assets, depreciation, finance costs, 
corporation tax and excludes non-recurring costs 
and share-based payment charges;
 Gross margin percentage: this is the percentage  • 
of profit to revenue after deducting direct costs, 
but before the deduction of any fixed or variable 
overhead costs;
 Administration costs as a percentage of revenue: • 
this is the central overhead cost (both divisional 
and corporate) as a percentage of total revenue;
 Operating margin: this is operating profit as  • 
a percentage of revenue. Operating profit is 
calculated before corporation tax and finance 
costs, which includes depreciation charges but 
excludes amortisation and impairment charges 
relating to intangible assets, share-based payment 
charges and any non-recurring costs;
 Earnings per share: This is the adjusted post-tax • 
earnings per basic ordinary share. Adjusted 
post-tax earnings is the profit after finance charges 
and corporation tax but excluding any non-
recurring expenses, share-based payment charges 
and finance charges relating to deferred 
consideration. The basic number of ordinary 
shares is the weighted average number of shares 
in issue (including contingently issuable shares) 
during the financial year before considering the 
dilutive effect of share options that are, or may 
become, exercisable; and
 Gearing: This is the net debt expressed as  • 
a percentage of shareholders’ funds.
 The Group’s performance against these KPIs  
is discussed in the Financial Review.
About Silverdell
Kitsons is proud to announce 
they have been awarded RoSPA’s 
prestigious Occupational Health 
and Safety Gold Award for the 
third year in succession
About asbestos...
At least five thousand 
people died in 2001  
of asbestos-related 
diseases
8981_Silverdell_AR10_Frt_TP 2.indd   27 10/12/10   10:53:04 28 Silverdell Plc Annual report and accounts 2010
BOARD OF DIRECTORS
dir Ectors and s Enior manag EmEnt
Stuart Doughty CMG (66) Executive Chairman
Stuart Doughty previously served as Chief Executive 
Officer of Costain Group Plc. He has over 40 years’ 
experience in the construction industry, including 
positions as Non-Executive Chairman of Alstec 
Group Limited, Beck & Pollitzer Limited, and 
Kennedy Construction Group Limited as well  
as Senior Non-Executive Director of Somero plc  
and Scott Wilson plc. Currently Mr Doughty serves 
as Senior Non-Executive Director of Aigis Blast 
Protection Limited.
Sean nutley (39) Chief Executive
Sean was previously Chief Operating Officer of 
Silverdell Plc and a board member since 2006, 
before being promoted to Chief Executive.  
Sean has more than 20 years’ experience in  
the asbestos and environmental sectors.
Andrew w atson (46) Managing Director, Kitsons
Andrew’s career with Kitsons spans 23 years,  
gaining successive promotions from Estimator to 
Operations Director before becoming Managing 
Director in 2007. Andrew has been fundamental  
to the development of Kitsons’ industrial expertise 
and its overall business growth over that time.
SENIOR MANAGEMENT
8981_Silverdell_AR10_Frt_TP 2.indd   28 10/12/10   10:53:07 Overview Business review Governance Financial statements
29 Silverdell Plc Annual report and accounts 2010
Ian Johnson (45) Chief Financial Officer
Previously Ian was Group Finance Director of 
McBride Plc. Ian has also held senior finance roles 
within Taylor Wimpey Plc, including Commercial 
Director for the Taylor Morrison Inc in North 
America. Ian has also had senior finance positions 
within the support service sector including roles  
at Regus Plc and Exel Plc.
Mark w atts (36) Non-Executive Director
Mark is a partner in Marwyn Capital LLP and 
Marwyn Investment Management LLP . Mark holds 
directorships in several other Marwyn investments: 
Praesepe Plc, ACS Plc and Entertainment One Ltd. 
Previously, Mark was a management consultant 
completing strategic development projects for  
many blue-chip companies including Ford Motor 
Company and Barclays Bank.
Dave Rhodes (36) Managing Director, Silverdell UK 
Dave has been involved in the asbestos industry  
for over 21 years since leaving school. He joined 
Silverdell UK in 2000 as a Regional Manager and  
was promoted to Managing Director in 2009. 
Brian Giddings (60) Managing Director, Redhills 
Brian joined Redhills 13 years ago, being promoted 
to Operations Director in 2007. With a new team 
around him this year, Brian has been key to driving 
the performance improvement delivered in 2010  
by Redhills.
8981_Silverdell_AR10_Frt_TP 2.indd   29 10/12/10   10:53:10 30 Silverdell Plc Annual report and accounts 2010
Directors’ report
The Directors have pleasure in presenting their report and the audited financial statements for the year 
ended 30 September 2010.
Principal activities
Silverdell Plc (‘the Company’) is the Parent Company of a group of companies providing asbestos, industrial 
and environmental solutions from Consulting and Remediation perspectives. The principal subsidiaries are 
shown in Note 30 to the accounts.
Business review
Details of the Group’s performance and activities during the year are contained within the Chairman’s 
Statement and the Chief Executive’s Statement on pages 8 to 9 and 18 to 24 and are incorporated in this 
report by reference.
Information about the use of financial instruments by the Group is given in Note 21 to the financial 
statements and is incorporated into this report by reference.
Results
The Group results for the year and the Group’s financial position at the end of the year are shown in the 
attached financial statements.
Future developments
An indication of the future developments is contained in the Chairman’s Statement and the Chief Executive’s 
Statement.
Dividends
The Directors do not recommend the payment of a dividend (2009: £nil).
Directors and their interests in the shares of the Company
The Directors of the Company in office during the period, together with their beneficial interests in the 
issued share capital of 1p (2009: 1p) ordinary shares required to be disclosed, were as follows:
30 September
2010
Shares
30 September
2010
Options
30 September
2009
Shares
30 September
2009
Options
Stuart Doughty 125,000 1,633,333 – –
Mark Watts – – – –
Sean Nutley 3,558,350 1,633,333 3,298,018 276,000
Ian Johnson 108,500 1,333,333 – –
There have been no changes in the Directors’ interests between the year end date and the date of this 
report and accounts.
In accordance with the Articles, Sean Nutley retires at the forthcoming AGM and offers himself for  
re-election.
8981_Silverdell_AR10_Mid/Back_TP.indd   30 10/12/10   11:22:31 Overview Business review Governance Financial statements
31 Silverdell Plc Annual report and accounts 2010
Directors and their interests in the shares of the Company continued
The Directors had the following interests in share options during the year ended 30 September 2010:
As at
1 October
2009
Exercised
in period
Forfeited
in period
Awarded
in period
As at
30 September
2010
Exercise
period
from/to
Exercise
price
Sean Nutley 226,000 – (226,000) 333,333 333,333 2012-2019 9.0p
50,000 – (50,000) 1,300,000 1,300,000 2012-2019 9.0p
276,000 – (276,000) 1,633,333 1,633,333
Ian Johnson – – – 333,333 333,333 2012-2019 9.0p
– – – 1,000,000 1,000,000 2012-2019 9.0p
– – – 1,333,333 1,333,333
Stuart Doughty – – – 333,333 333,333 2012-2019 9.0p
– – – 1,300,000 1,300,000 2012-2019 5.0p
– – – 1,633,333 1,633,333
276,000 – (276,000) 4,599,999 4,599,999
The market price of the Company’s shares as at 30 September 2010 was 8.0p (30 September 2009: 9.5p) 
and the range during the year was 8.0p to 12.5p (2009: 6.6p to 27.0p).
Directors’ remuneration
It is the Board’s policy to provide executive compensation packages that attract and retain management 
talent and properly motivate executives to deliver the Board’s strategy and provide long-term value  
to shareholders. The compensation of the Executive Directors and the senior management comprises  
a number of elements, including both short-term and long-term incentive plans, designed to optimise  
the individual’s performance and align the interests of the manager with those of the shareholders.  
The Directors consider that the overall balance of executive pay be balanced in favour of performance 
incentives, both short- and long-term. 
The remuneration of senior executives comprises: base pay and benefits (including pension contributions, 
private health care, insurance and car allowances), annual bonus payments and share options.
The base pay and benefits of Executive Directors and senior management is reviewed at least annually  
by the Remuneration Committee with particular regard to the base pay and benefits of similar positions  
in comparable organisations, taking appropriate advice from qualified advisers.
The annual bonus scheme pays up to 100% of the base pay of senior executives and is predominantly  
linked to overall profit performance relative to a budget set at the commencement of the financial year. 
Recognising the importance that the Directors place on Health & Safety, part of the annual bonus is 
determined by Health & Safety performance, measured against an internal standard.
The share option scheme provides the senior executives with the opportunity to participate in the future 
success of the Group along with its shareholders. Share options may be granted up to the value of 100%  
of an executive’s base pay. 
Options will then vest according to set of performance criteria set by the Board based on the growth  
of Group post-tax profits (ahead of inflation) over a three year period.
8981_Silverdell_AR10_Mid/Back_TP.indd   31 10/12/10   11:22:32 32 Silverdell Plc Annual report and accounts 2010
Directors’ report continued
Substantial interests in the share capital  
at 4 October 2010 
In addition to the Directors, the Company had been 
notified of the following shareholders who held  
3% or more of the ordinary share capital in issue  
of the Company:
Number of 
shares %
Marwyn Investment   
 Management 34,759,545 22.92
WH Ireland 23,525,000 15.51
Killik & Co 17,285,321 11.40
Octopus Investments 15,650,000 10.32
Fidelity Investments 14,805,200 9.76
Going concern
The Directors have performed a review of the 
Company’s banking arrangements, short-, medium- 
and long-term business forecasts and potential cash 
requirements under a variety of trading scenarios. 
The Directors have a reasonable expectation that 
the Group has adequate resources to continue 
operating for the foreseeable future. On these 
grounds the Board have continued to adopt the 
going concern basis for the preparation of the 
financial statements.
Health and Safety Policy
The Group is a specialist operator in the handling  
of hazardous waste, in particular asbestos. All teams 
are required to attend at least annual training 
sessions to ensure they are up to date and 
reappraised of the environmental risks and Health  
& Safety policy. Our systems are accredited to 
Occupational Health and Advisory Services 
(‘OHSAS’) 18001 standards and are designed to 
protect our employees and those living and working 
in close proximity to our sites. We have been  
a Royal Society for the Prevention of Accidents 
(‘RoSPA’) Gold Award winner for two years 
consecutively in 2008 and 2009. The Group has an 
in-house training function, SAFE, that is recognised 
throughout the industry and often used to train 
client teams. The SAFE team works to ensure that  
all operatives are equipped with superior technical 
and safety management skills. All operatives are 
required to carry out induction training upon 
arriving at a site and Health & Safety policies and 
procedures are rigidly adhered to and enforced, 
including monitoring systems and subsequent 
demobilisation and project review. Our audit 
systems are then designed to ensure that all safety 
procedures are adopted on a timely basis and 
without compromise.
The Group provides services which meet the  
most demanding industry accreditations including  
ISO 9901, ISO 200, ISO 14001, ISO 18001, ISO 17025 
and ISO 17020 as well as the UK’s Industrial 
Accreditation Service, UKAS.
Finally, the Group has appropriate insurance covers 
to protect against the risk of material loss in the 
event of a failure in these preventative systems.
Donations
The Group did not make political donations in the 
year (2009: £nil). During the year the Group made 
charitable donations of £7,789 (2009: £40,350).
Creditor payments policy
The Group’s policy in respect of the payment of 
suppliers is to agree payment terms in advance  
with its suppliers and pay in accordance with those 
terms, subject to any disputes and the timely 
presentation of purchase invoices. The average 
number of days’ credit taken at 30 September 2010 
was 54 days (2009: 55 days).
Disabled employees
The Group makes every reasonable effort to provide 
employment opportunities for work, training and 
career development for disabled applicants and 
employees, commensurate with their abilities. In the 
recruitment and subsequent career development  
of employees, consideration is only given to an 
individual’s aptitudes and abilities irrespective  
of race, gender, religion, marital status, sexuality  
or disability.
Employee involvement
The Group places considerable value on the 
involvement of its employees and encourages the 
development of employee involvement in each  
of its operating companies through formal and 
informal meetings. 
Directors’ indemnities
The Company has made qualifying third party 
indemnity provisions for the benefit of its Directors, 
which were made during the year and remains  
in force at the date of this report.
8981_Silverdell_AR10_Mid/Back_TP.indd   32 10/12/10   11:22:32 Overview Business review Governance Financial statements
33 Silverdell Plc Annual report and accounts 2010
Statement of Directors’ responsibilities in respect 
of the Annual Report and the financial statements
The Directors are responsible for preparing the 
Annual Report and the Group and Parent Company 
financial statements in accordance with applicable 
law and regulations.
Company law requires the Directors to prepare 
Group and Parent Company financial statements  
for each financial year. As required by the AIM Rules 
of the London Stock Exchange they are required  
to prepare the Group financial statements in 
accordance with IFRSs as adopted by the EU and 
applicable law and have elected to prepare the 
Parent Company financial statements in accordance 
with UK Accounting Standards and applicable law 
(UK Generally Accepted Accounting Practice).
Under company law the Directors must not approve 
the financial statements unless they are satisfied 
that they give a true and fair view of the state of 
affairs of the Group and Parent Company and of 
their profit or loss for that period. In preparing  
each of the Group and Parent Company financial 
statements, the Directors are required to:
 select suitable accounting policies and then apply • 
them consistently;
 make judgements and estimates that are • 
reasonable and prudent;
 for the Group financial statements, state whether • 
they have been prepared in accordance with  
IFRSs as adopted by the EU;
 for the Parent Company financial statements, • 
state whether applicable UK Accounting Standards 
have been followed, subject to any material 
departures disclosed and explained in the financial 
statements; and
 prepare the financial statements on the going • 
concern basis unless it is inappropriate to presume 
that the Group and the Parent Company will 
continue in business.
The Directors are responsible for keeping adequate 
accounting records that are sufficient to show and 
explain the Parent Company’s transactions and 
disclose with reasonable accuracy at any time the 
financial position of the Parent Company and enable 
them to ensure that its financial statements comply 
with the Companies Act 2006. They have general 
responsibility for taking such steps as are reasonably 
open to them to safeguard the assets of the  
Group and to prevent and detect fraud and other 
irregularities.
The Directors are responsible for the maintenance 
and integrity of the corporate and financial 
information included on the Company’s website. 
Legislation in the UK governing the preparation and 
dissemination of financial statements may differ 
from legislation in other jurisdictions.
Auditors
Each of the persons who is a Director at the date  
of approval of this report confirms that:
 So far as the Director is aware, there is no relevant • 
information of which the Group’s auditors are 
unaware;
 The Director has taken all the steps that he ought • 
to have taken as a Director in order to make 
himself aware of any relevant audit information 
and to establish that the Group’s auditors are 
aware of that information;
 The financial statements, prepared in accordance • 
with IFRSs as adopted by the EU, give a true and 
fair view of the assets, liabilities, financial position 
and profits or loss of the Group; and
 The Business Review and Directors’ Report • 
includes a fair review of the development and 
performance of the business and the position  
of the Group, together with a description of the 
principal risks and uncertainties they face.
This confirmation is given and should be interpreted 
in accordance with the provisions of S418 of the 
Companies Act 2006.
The Group’s auditors, KPMG Audit Plc, were 
appointed during the year and have expressed their 
willingness to continue in office as auditors.  
In accordance with Section 489 of the Companies 
Act 2006, a resolution for the re-appointment of 
KPMG Audit Plc as auditors of the Company is  
to be proposed at the forthcoming Annual General 
Meeting.
Approved by the Board of Directors and signed  
on behalf of the Board.
Susan Fadil FCIS
Company Secretary
30 November 2010
8981_Silverdell_AR10_Mid/Back_TP.indd   33 10/12/10   11:22:32 34 Silverdell Plc Annual report and accounts 2010
corporate governance 
anD risk management Statement by the Directors on compliance  
with the Combined Code
As an AIM listed company, Silverdell Plc is not 
required to comply with the provisions of the 
Combined Code on Corporate Governance  
(‘The Combined Code’) that applies to companies 
with a full London Stock Exchange Listing. However, 
the Board recognises the importance and value  
of good corporate governance and accordingly  
have detailed below those elements of the 
Combined Code that they consider most relevant 
and appropriate to the Group, given its size  
and structure.
The Board
The composition of the Board is detailed on  
pages 28 and 29. There are three executive 
Directors and one non-executive Director. The 
Board recognises that the current composition  
of the Board is not in line with best practice as 
identified in Higgs Review and will seek to address 
any shortcomings during the forthcoming year. In 
particular, the Board will seek to appoint additional 
non-executive Directors who, if appointed, will  
also sit on each of the sub-committees.
The Board has two sub-committees comprising  
the following:
The Audit Committee: The purpose of the Audit 
Committee is to provide formal and transparent 
arrangements for considering how to apply the 
financial reporting and internal control principles 
and to maintain the appropriate relationship with 
the Company’s auditors. This is chaired by Stuart 
Doughty and includes Mark Watts as the other 
member. Ian Johnson and Sean Nutley are invited  
to attend each meeting.
The Remuneration Committee: The purpose  
of the Remuneration Committee is to establish  
a formal and transparent procedure for developing  
a policy on executive remuneration and to set  
the remuneration packages for individual directors.  
This is chaired by Mark Watts and includes  
Stuart Doughty as the other member.
Risk management and internal controls
The Directors are responsible for the Group’s system 
of internal controls and reviewing its effectiveness. 
The role of management is to execute the strategy 
whilst adhering to, and enforcing throughout the 
business, the Board’s policies on risk management 
and internal control. Any system of internal control 
is designed to manage, rather than eliminate,  
the risk of failure to achieve the Group’s strategic 
objectives and can only provide reasonable, and not 
absolute assurance against material misstatement 
or loss.
The Group operates a system of internal controls 
that is designed to meets its needs. These controls 
include a clearly defined organisational structure,  
an annual strategic planning and budgeting process, 
regular forecasting and detailed monthly reporting. 
The organisational structure makes clear the lines  
of authority and responsibility throughout the 
business, while the budget process ensures that 
targets are properly established and communicated. 
The Board reviews and approves the annual budget 
and the period re-forecasts to ensure that targets 
and plans are consistent with the Group’s overall 
objectives. Progress against the budget and 
forecasts are then reviewed each month by the 
Board, including the cash flow forecast and other 
KPIs, as outlined in the statement on Key Risks and 
Mitigations on page 26 and 27. A comprehensive 
series of management reports is made each month 
to the executive management committee which 
comprises the Chief Executive Officer, Chief Financial 
Officer, subsidiary Managing Directors and Finance 
Directors and these reports are also summarised  
for the Board.
The Board has established a clear set of delegated 
authorities and accounting policies. The application 
of these policies is reviewed by executive 
management in the normal course of business as 
well the external auditors. The Board has considered 
the need for an internal audit function but has 
determined that current procedures are sufficient 
given the scale, scope and complexity of the  
Group’s operations.
Recognising the potentially hazardous nature  
of the Group’s operations, the Board has a 
comprehensive Health & Safety policy. Health & 
Safety is a mandated agenda item for all executive 
management committee and Board meetings.  
The Group has a dedicated Health & Safety team 
that provides expert advice to operational teams 
and also performs regular, comprehensive audits  
at all operational sites, including spot checks.
8981_Silverdell_AR10_Mid/Back_TP.indd   34 10/12/10   11:22:32 Overview Business review Governance Financial statements
35 Silverdell Plc Annual report and accounts 2010
We have audited the financial statements of 
Silverdell Plc for the year ended 30 September 2010 
as set out on pages 36 to 70. The financial reporting 
framework that has been applied in the preparation 
of the Group financial statements is applicable law 
and International Financial Reporting Standards 
(IFRSs) as adopted by the EU. The financial reporting 
framework that has been applied in the preparation 
of the Parent Company financial statements is 
applicable law and UK Accounting Standards (UK 
Generally Accepted Accounting Practice).
This report is made solely to the Company’s 
members, as a body, in accordance with Chapter 3 
of Part 16 of the Companies Act 2006. Our audit 
work has been undertaken so that we might state  
to the Company’s members those matters we are 
required to state to them in an auditors’ report and 
for no other purpose. To the fullest extent permitted 
by law, we do not accept or assume responsibility to 
anyone other than the Company and the Company’s 
members, as a body, for our audit work, for this 
report, or for the opinions we have formed.
Respective responsibilities of directors  
and auditors
As explained more fully in the Directors’ 
Responsibilities Statement set out on page 33,  
the Directors are responsible for the preparation  
of the financial statements and for being satisfied 
that they give a true and fair view. 
Our responsibility is to audit the financial 
statements in accordance with applicable law  
and International Standards on Auditing (UK and 
Ireland). Those standards require us to comply  
with the Auditing Practices Board’s (APB’s) Ethical 
Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial 
statements is provided on the APB’s website  
at www.frc.org.uk/apb/scope/UKNP . 
Opinion on financial statements
In our opinion:
 the financial statements give a true and fair view • 
of the state of the Group’s and of the Parent 
Company’s affairs as at 30 September 2010 and  
of the Group’s profit for the year then ended;
 the Group financial statements have been • 
properly prepared in accordance with IFRSs as 
adopted by the EU;
 the Parent Company financial statements have • 
been properly prepared in accordance with  
UK Generally Accepted Accounting Practice;
 the financial statements have been prepared  • 
in accordance with the requirements of the 
Companies Act 2006.
Opinion on other matter prescribed by the 
Companies Act 2006
In our opinion the information given in the 
Directors’ Report for the financial year for which  
the financial statements are prepared is consistent 
with the financial statements. 
 
Matters on which we are required to report  
by exception
We have nothing to report in respect of the 
following matters where the Companies Act 2006 
requires us to report to you if, in our opinion:
 adequate accounting records have not been kept • 
by the Parent Company, or returns adequate for 
our audit have not been received from branches 
not visited by us; or
 the Parent Company financial statements are  • 
not in agreement with the accounting records  
and returns; or
 certain disclosures of Directors’ remuneration • 
specified by law are not made; or
 we have not received all the information and • 
explanations we require for our audit.
 
Matt Lewis (Senior Statutory Auditor)
for and on behalf of KPMG Audit Plc
Chartered Accountants and Statutory Auditors
8 Salisbury Square
London EC4Y 4BB
United Kingdom
30 November 2010 
inD epen Dent au Ditors’ report  
TO THE MEMBERS OF SILvERDELL PLC
8981_Silverdell_AR10_Mid/Back_TP.indd   35 10/12/10   11:22:32 36 Silverdell Plc Annual report and accounts 2010
FOR THE YEAR ENDED 30 SEPTEMBER 2010
COnSOLIDATED InCOME STATEMEnT
Notes 
2010
£’000
2009
£’000
Continuing operations
Revenue 56,674 59,509
Cost of sales (41,974) (44,897)
Gross profit 14,700 14,612
Impairment of goodwill 11 – (4,802)
Amortisation of intangible assets 11 (601) (1,742)
Non-recurring expenses 11 – (690)
Other administrative expenses (11,595) (13,055)
Administrative expenses (12,196) (20,289)
Operating profit/(loss) before non-recurring items,  
 impairments and amortisation 3,105 1,557
Non-recurring items, impairments and amortisation 11 (601) (7,234)
Operating profit/(loss) 6 2,504 (5,677)
Finance income 8 – 9
Finance costs 9 (672) (1,199)
Profit/(loss) before tax 1,832 (6,867)
Income taxation (charge)/credit 10 (1,095) 826
Profit/(loss) for the year 737 (6,041)
Earnings per share (pence) 
Basic earnings per ordinary share 12 0.5 (7.3)
Diluted earnings per ordinary share 12 0.5 (7.3)
8981_Silverdell_AR10_Mid/Back_TP.indd   36 10/12/10   11:22:32 Overview Business review Governance Financial statements
37 Silverdell Plc Annual report and accounts 2010
FOR THE YEAR ENDED 30 SEPTEMBER 2010
COnSOLIDATED STATEMEnT 
of comprehensive income
2010
£’000
2009
£’000
Profit/(loss) for the year 737 (6,041)
Other comprehensive income
Cash flow hedges:
– gain/(loss) arising during the year 86 (116)
– related tax (charge)/credit (24) 32
62 (84)
Total comprehensive income for the year 799 (6,125)
8981_Silverdell_AR10_Mid/Back_TP.indd   37 10/12/10   11:22:32 38 Silverdell Plc Annual report and accounts 2010
COnSOLIDATED BALAnCE SHEET
AT 30 SEPTEMBER 2010
Notes
2010
£’000
2009
£’000
Assets
n on-current assets
Goodwill 13 16,156 16,156
Other intangible assets 14 – 601
Property, plant and equipment 15 1,999 2,343
Trade and other receivables 18 1,001 1,001
Deferred tax asset 10 – 120
19,156 20,221
Current assets
Inventories and work in progress 16 998 1,624
Other financial assets 17 – 9
Trade and other receivables 18 12,774 12,691
Current tax receivable – 369
Cash and cash equivalents 3,626 2,885
17,398 17,578
Total assets 36,554 37,799
n on-current liabilities
Borrowings 20 4,777 4,700
Trade and other payables 22 1,001 1,001
Deferred tax liabilities 10 15 157
5,793 5,858
Liabilities
Current liabilities
Borrowings 20 3,117 2,848
Trade and other payables 22 8,114 10,912
Other financial liabilities 17 71 157
Current tax liabilities 506 –
11,808 13,917
Total liabilities 17,601 19,775
n et assets 18,953 18,024
Equity
Share capital 23 1,516 5,265
Share premium account 17,813 17,813
Equity reserve 464 334
Hedging reserve (52) (114)
Capital reserve 3,749 –
Other reserves 16,635 16,635
Retained earnings (21,172) (21,909)
Total equity 18,953 18,024
These financial statements were approved by the Board of Directors on 30 November 2010.
Signed on behalf of the Board of Directors: 
Ian Johnson
Director
Company number: 5755897
8981_Silverdell_AR10_Mid/Back_TP.indd   38 10/12/10   11:22:32 Overview Business review Governance Financial statements
39 Silverdell Plc Annual report and accounts 2010
FOR THE YEAR ENDED 30 SEPTEMBER 2010
COnSOLIDATED STATEMEnT 
of changes in equity Share 
capital
£’000
Share
premium
£’000
Other 
reserves
£’000
Equity
reserve
£’000
Hedging
reserve
£’000
Capital
reserve
£’000
Retained
earnings
£’000
 Total
£’000
At 1 October 2008 4,165 13,649 16,635 411 (30) – (15,868) 18,962
Net loss for year – – – – – – (6,041) (6,041)
Other comprehensive income – – – – (84) – – (84)
Total comprehensive income  
 or the year – – – – (84) – (6,041) (6,125)
Shares issued
1
1,100 4,400 – – – – – 5,500
Expenses of placing – (236) – – – – – (236)
Share-based payment charge  
 including tax – – – (77) – – – (77)
At 1 October 2009 5,265 17,813 16,635 334 (114) – (21,909) 18,024
Net profit for year – – – – – – 737 737
Other comprehensive income – – – – 62 – – 62
Total comprehensive income  
 for the year – – – – 62 – 737 799
Shares cancelled
1
(3,749) – – – – 3,749 – –
Share-based payment charge  
 including tax – – – 130 – – – 130
At 30 September 2010 1,516 17,813 16,635 464 (52) 3,749 (21,172) 18,953
Other reserves are not distributable and relate to the premium arising on:
i. Shares issued as consideration for the acquisition of subsidiary companies;
ii.Warrants issued to Marwyn Neptune Fund LP in consideration for the participation in placing of shares on 19 July 2006.
1
  The shares existing at 1 October 2008 were divided into ordinary shares of 1p and deferred shares of 1p in 2009 and  
the deferred shares were subsequently cancelled in March 2010. Refer to Note 23 for more details.
The capital reserve arose from the cancellation of the deferred shares of 1p in March 2010 and is considered to be  
a non-distributable reserve.
8981_Silverdell_AR10_Mid/Back_TP.indd   39 10/12/10   11:22:32 40 Silverdell Plc Annual report and accounts 2010
FOR THE YEAR ENDED 30 SEPTEMBER 2010
COnSOLIDATED STATEMEnT OF CASH FLOWS
Notes 
 2010
£’000
2009
£’000
Cash flows from operating activities 
Profit/(loss) for the year 737 (6,041)
Income taxation charge/(credit) 1,095 (826)
Finance income – (9)
Finance costs 672 1,199
Impairment of goodwill 13 – 4,802
Amortisation of intangibles 14 601 1,742
Depreciation on property, plant and equipment 15 701 792
(Profit)/loss on disposal of property, plant and equipment (34) 13
Share-based payments 7 130 (77)
Movements in working capital:
– Decrease/(increase) in inventories 626 (461)
– Decrease in trade and other receivables – 3,871
– (Decrease)/increase in trade and other payables (2,591) 1,791
Cash generated from operations 1,937 6,796
Income tax paid (269) (457)
n et cash inflow from operating activities 1,668 6,339
Cash flows from investing activities
Purchase of property, plant and equipment (363) (395)
Proceeds from sale of property, plant and equipment 75 56
Acquisition of subsidiaries – (334)
n et cash outflow from investing activities (288) (673)
Cash flows from financing activities
Interest paid (744) (1,174)
Interest paid on finance leases (1) (25)
Payments for hire purchase contracts principals (124) (410)
Proceeds from bank loans 5,500 3,250
Repayments of bank loans (6,450) (9,096)
Proceeds from issue of equity shares (net) – 5,264
n et cash outflow from financing activities (1,819) (2,191)
n et (decrease)/increase in cash and cash equivalents (439) 3,475
Cash and cash equivalents at the beginning of the year 1,725 (1,750)
Cash and cash equivalents at the end of the year 1,286 1,725
Cash and cash equivalents comprises:
Cash at bank and in hand 19 3,626 2,885
Bank overdrafts 19 (2,340) (1,160)
1,286 1,725
8981_Silverdell_AR10_Mid/Back_TP.indd   40 10/12/10   11:22:33 Overview Business review Governance Financial statements
41 Silverdell Plc Annual report and accounts 2010
FOR THE YEAR ENDED 30 SEPTEMBER 2010
nOTES TO THE COnSOLIDATED 
FInAn CIAL STATEMEnTS
1. General information
Silverdell Plc is a company incorporated in Great 
Britain under the Companies Act 2006. The address 
of the registered office is given on page 71. The 
nature of the Group’s operations and its principal 
activities are set out in the Directors’ Report on 
pages 30 to 33.
2. Basis of preparation
The annual consolidated financial statements  
of the Group have been prepared in accordance 
with International Reporting Standards (‘IFRS’)  
as adopted by the European Union (‘EU’) (IFRS as 
adopted by the EU). 
Going concern
Detailed cash flow forecasts are prepared and 
regularly reviewed by the Board to assess the 
Group’s financial position. The current economic 
conditions do create some uncertainty and the 
Group’s borrowings do fluctuate, but the continued 
planned actions on improving working capital 
management has enabled the repayment of £6.5m 
of debt and the reduction of net debt from £4.7m  
to £4.3m during the year ended 30 September 2010. 
Further, the Group has a number of long-term 
framework contracts with customers and suppliers 
across industries. As a consequence the Directors 
believe that the Group is well placed to manage  
its business risks successfully despite the current 
economic outlook. For further information on 
liquidity please refer to Note 21 and the Directors’ 
Report.
The Directors have a reasonable expectation that 
the Group has adequate resources to continue 
operating for the foreseeable future. On these 
grounds the Board have continued to adopt the 
going concern basis for the preparation of the 
financial statements.
3. newly effective standards and new standards 
not yet adopted
A number of new standards, amendments to 
standards and interpretations are effective for 
annual periods beginning after 1 January 2010  
and have not been applied in preparing these 
consolidated financial statements. None of these  
is expected to have a significant effect on the 
consolidated financial statements of the Group, 
except for IFRS 9 Financial Instruments, which 
becomes mandatory for the Group’s 2013 
consolidated financial statements and could change 
classification and measurement of financial assets. 
The Group does not plan to adopt this standard 
early and the extent of the impact has not yet been 
determined.
3.1 Accounting policies 
Basis of accounting
The consolidated financial information has been 
prepared in accordance with IFRSs adopted by the 
European Union and therefore the Group financial 
statements comply with Article 4 of the EU IAS 
Regulation.
The consolidated financial information has been 
prepared on the historical cost basis except for  
the revaluation of certain financial instruments 
measured at fair value. The principal accounting 
policies adopted are set out below.
Basis of consolidation
The consolidated financial statements incorporate 
the financial statements of the Company and 
entities controlled by the Company (its subsidiaries) 
made up to 30 September each year. Control  
is achieved where the Company has the power  
to govern the financial and operating policies of  
an investee entity so as to obtain benefits from  
its activities.
The results of subsidiaries acquired or disposed  
of during the year are included in the consolidated 
income statement from the effective date of 
acquisition or up to the effective date of disposal,  
as appropriate.
Where necessary, adjustments are made to the 
financial statements of subsidiaries to bring the 
accounting policies used in line with those used  
by the Group.
All intra-Group transactions, balances, income  
and expenses are eliminated on consolidation.
8981_Silverdell_AR10_Mid/Back_TP.indd   41 10/12/10   11:22:33 42 Silverdell Plc Annual report and accounts 2010
3.1 Accounting policies continued
Business combinations 
The acquisition of subsidiaries is accounted for using 
the purchase method. The cost of the acquisition is 
measured at the aggregate of the fair values, at the 
date of exchange, of assets given, liabilities incurred 
or assumed, and equity instruments issued by the 
Group in exchange for control of the acquiree plus, 
in the case of combinations before 1 July 2009,  
any costs directly attributable to the business 
combination. The acquiree’s identifiable assets, 
liabilities and contingent liabilities that meet the 
conditions for recognition under IFRS 3 are 
recognised at their fair value at the acquisition date.
Goodwill arising on acquisition is recognised  
as an asset and initially measured at cost, being  
the excess of the cost of the business combination 
over the Group’s interest in the net fair value of  
the identifiable assets, liabilities and contingent 
liabilities recognised. If, after reassessment,  
the Group’s interest in the net fair value of the 
acquiree’s identifiable assets, liabilities and 
contingent liabilities exceeds the cost of the 
business combination, the excess is recognised 
immediately in profit or loss.
 
Goodwill
Goodwill arising on consolidation represents the 
excess of the cost of acquisition over the Group’s 
interest in the fair value of the identifiable assets 
and liabilities of a subsidiary at the date of 
acquisition. Goodwill is initially recognised as an 
asset at cost and is subsequently measured at cost 
less any accumulated impairment losses. Goodwill 
which is recognised as an asset is reviewed for 
impairment at least annually. Any impairment  
is recognised immediately in profit or loss.
For the purpose of impairment testing, goodwill  
is allocated to each of the Group’s cash-generating 
units expected to benefit from the synergies  
of the combination. Cash-generating units to  
which goodwill has been allocated are tested for 
impairment annually, or more frequently when 
there is an indication that the unit may be impaired. 
If the recoverable amount of the cash-generating 
unit is less than the carrying amount of the unit,  
the impairment loss is allocated first to reduce the 
carrying amount of any goodwill allocated to the 
unit and then to the other assets of the unit pro rata 
on the basis of the carrying amount of each asset in 
the unit. An impairment loss recognised for goodwill 
is not reversed in a subsequent period.
Revenue recognition
Revenue is measured at the fair value of the 
consideration received or receivable and represents 
amounts receivable for services provided in the 
normal course of business, net of discounts, VAT  
and other sales-related taxes.
Profit is recognised on long-term contracts if the 
final outcome can be assessed with reasonable 
certainty by including in the income statement 
revenue and related costs as contract activity 
progresses. Revenue is calculated by reference to 
the value of work performed to date as a proportion 
of total contract value.
Leasing
Leases are classified as finance leases whenever the 
terms of the lease transfer substantially all the risks 
and rewards of ownership to the lessee. All other 
leases are classified as operating leases.
Assets held under finance leases are recognised as 
assets of the Group at their fair value or, if lower, at 
the present value of the minimum lease payments, 
each determined at the inception of the lease. 
The corresponding liability to the lessor is included 
in the balance sheet as a finance lease obligation. 
Lease payments are apportioned between finance 
charges and reduction of the lease obligation so  
as to achieve a constant rate of interest on the 
remaining balance of the liability. Finance charges 
are charged directly against income.
Rentals payable under operating leases are charged 
to income on a straight-line basis over the term  
of the relevant lease.
Benefits received and receivable as an incentive  
to enter into an operating lease are also spread  
on a straight-line basis over the lease term.
Borrowing costs
Borrowing costs are recognised in profit or loss  
in the period in which they are incurred.
Retirement benefit costs 
Payments to defined contribution retirement 
benefit schemes are charged as an expense as  
they fall due. 
 
FOR THE YEAR ENDED 30 SEPTEMBER 2010
nOTES TO THE COnSOLIDATED 
FInAn CIAL STATEMEnTS continued
8981_Silverdell_AR10_Mid/Back_TP.indd   42 10/12/10   11:22:33 Overview Business review Governance Financial statements
43 Silverdell Plc Annual report and accounts 2010
3.1 Accounting policies continued
Taxation
The tax expense represents the sum of the tax 
currently payable and the movements in  
deferred tax.
The tax currently payable is based on 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 
taxable or deductible in other years and it further 
excludes items that are never taxable or deductible. 
The Group’s liability for current tax is calculated 
using tax rates 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. Such assets and liabilities are not 
recognised if the temporary difference arises from 
the initial recognition of goodwill or from the initial 
recognition (other than in a business combination) 
of other assets and liabilities in a transaction that 
affects neither the tax profit nor the accounting 
profit.
Deferred tax liabilities are recognised for taxable 
temporary differences arising on investments in 
subsidiaries, 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.
The carrying amount of deferred tax assets is 
reviewed at each balance sheet date and reduced  
to the extent that it is no longer probable that 
sufficient taxable profits will be available to allow  
all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are 
expected to apply in the period when the liability  
is settled or the asset is realised. Deferred tax is 
charged or credited in the income statement, except 
when it relates to items charged or credited to other 
comprehensive income, in which case the deferred 
tax is also dealt with in other comprehensive 
income.
Deferred tax assets and liabilities are offset when 
there is a legally enforceable right to set off current 
tax assets against current tax liabilities and when 
they relate to income taxes levied by the same 
taxation authority and the Group intends to settle 
its current tax assets and liabilities on a net basis.
Property, plant and equipment
Property, plant and equipment is stated at cost less 
accumulated depreciation and any recognised 
impairment loss.
Depreciation is charged so as to write off the cost  
or valuation of assets, other than land and assets 
under construction, over their estimated useful 
lives, on the following bases:
Freehold property 4% on cost 
Leasehold property 10% on cost
Plant and machinery 10% on cost
Office equipment  16.6%-25% on cost
Motor vehicles  25% on reducing balance
Assets held under finance leases are depreciated 
over their expected useful lives on the same basis  
as owned assets or, where shorter, over the term  
of the relevant lease.
The gain or loss arising on the disposal or retirement 
of an asset is determined as the difference between 
the sales proceeds and the carrying amount of the 
asset and is recognised in income.
 
Impairment of tangible and intangible assets 
excluding goodwill
At each balance sheet date, the Group reviews the 
carrying amounts of its tangible and intangible 
assets to determine whether there is any indication 
that those assets have suffered an impairment  
loss. If any such indication exists, the recoverable 
amount of the asset is estimated in order to 
determine the extent of the impairment loss (if any). 
Where the asset does not generate cash flows that 
are independent from other assets, the Group 
estimates the recoverable amount of the cash-
generating unit to which the asset belongs. 
Recoverable amount is the higher of fair value less 
costs to sell and value in use. In assessing value in 
use, the estimated future cash flows are discounted 
to their present value using a pre-tax discount rate 
that reflects current market assessments of the time 
value of money and the risks specific to the asset  
for which the estimates of future cash flows have 
not been adjusted.
8981_Silverdell_AR10_Mid/Back_TP.indd   43 10/12/10   11:22:33 44 Silverdell Plc Annual report and accounts 2010
3.1 Accounting policies continued
Impairment of tangible and intangible assets 
excluding goodwill continued
If the recoverable amount of an asset (or cash-
generating unit) is estimated to be less than its 
carrying amount, the carrying amount of the asset 
(cash-generating unit) is reduced to its recoverable 
amount. An impairment loss is recognised as an 
expense immediately. Where an impairment loss 
subsequently reverses, the carrying amount of the 
asset (cash-generating unit) is increased to the 
revised estimate of its recoverable amount, but  
so that the increased carrying amount does not 
exceed the carrying amount that would have been 
determined had no impairment loss been 
recognised for the asset (cash-generating unit)  
in prior years. A reversal of an impairment loss  
is recognised as income immediately. 
Inventories and work in progress
Inventories are stated at the lower of cost and net 
realisable value. Cost comprises direct materials 
and, where applicable direct labour costs and those 
overheads that have been incurred in bringing the 
inventories to their present location and condition. 
Cost is calculated using the weighted average 
method. Net realisable value represents the 
estimated selling price less all estimated costs of 
completion and costs to be incurred in marketing, 
selling and distribution.
Work in progress on service contracts is stated at 
cost plus, where the outcome can be assessed with 
reasonable certainty, estimated profits attributable 
to the stage of completion less provision for any 
expected losses and progress payments received on 
account. Amounts recoverable on long term service 
contracts, which are included in trade and other 
receivables, are stated at the net sales value of the 
work done less progress payments received on 
account. Excess progress payments are included  
on trade and other payables. Cumulative costs 
incurred, less amounts transferred to cost of sales, 
less provision for contingencies and expected future 
losses on service contracts, are included as long-
term service contract balances in inventories.
Financial instruments
Financial assets and financial liabilities are 
recognised in the Group’s balance sheet when  
the Group becomes a party to the contractual 
provisions of the instrument. 
Financial instruments are classified into the 
following categories: financial assets at fair value 
through profit and loss ‘FVTPL’ (held for trading), 
‘loans and receivables’ at amortised cost, financial 
liabilities – derivatives designated as cash flow 
hedges, and financial liabilities at amortised cost.
The classification depends on the nature and 
purpose of the financial instruments. 
Trade receivables
Trade receivables are measured at initial recognition 
at fair value. Appropriate allowances for estimated 
irrecoverable amounts are recognised in profit  
or loss when there is objective evidence that the 
asset is impaired.
 
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand 
and demand deposits and other short-term highly 
liquid investments that are readily convertible  
to a known amount of cash and are subject to  
an insignificant risk of changes in value.
Financial liabilities and equity
Financial liabilities and equity instruments are 
classified according to the substance of the 
contractual arrangements entered into. An equity 
instrument is any contract that evidences a residual 
interest in the assets of the Group after deducting 
all of its liabilities.
Bank borrowings
Interest-bearing bank loans and overdrafts are 
recorded at the proceeds received, net of direct 
issue costs. Finance charges, including premiums 
payable on settlement or redemption and direct 
issue costs, are accounted for on an accrual basis  
in profit or loss using the effective interest rate 
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
Trade payables are initially measured at fair value.
FOR THE YEAR ENDED 30 SEPTEMBER 2010
nOTES TO THE COnSOLIDATED 
FInAn CIAL STATEMEnTS continued
8981_Silverdell_AR10_Mid/Back_TP.indd   44 10/12/10   11:22:33 Overview Business review Governance Financial statements
45 Silverdell Plc Annual report and accounts 2010
3.1 Accounting policies continued
Financial instruments continued
Derivative financial instruments and hedge 
accounting
The Group’s activities expose it primarily to the 
financial risk of changes in interest rates. The Group 
uses interest rate swap contracts to hedge this 
exposure. The Group does not use derivative 
financial instruments for speculative purposes.
The use of financial derivatives is governed by the 
Group’s policies approved by the Board of Directors, 
which provide written principles on the use of 
financial derivatives. 
Changes in the fair value of derivative financial 
instruments that are designated and effective as 
hedges of future cash flows are recognised in other 
comprehensive income and the ineffective portion 
is recognised immediately in the income statement. 
If the cash flow hedge of a firm commitment or 
forecasted transaction results in the recognition  
of an asset or a liability, then, at the time the asset 
or liability is recognised, the associated gains or 
losses on the derivative that had previously been 
recognised in other comprehensive income are 
included in the initial measurement of the asset  
or liability. For hedges that do not result in the 
recognition of an asset or a liability, amounts 
deferred in other comprehensive income are 
recognised in the income statement in the same 
period in which the hedged item affects net profit  
or loss.
Changes in the fair value of derivative financial 
instruments that do not qualify for hedge accounting 
are classified as FVTPL (held for trading), and the 
gains and losses are recognised in the income 
statement as they arise. These are classified as held 
for trading as they have not been hedge accounted, 
and have not been ‘designated’ as FVTPL.
Hedge accounting is discontinued when the hedging 
instrument expires or is sold, terminated, or 
exercised, or no longer qualifies for hedge 
accounting. At that time, any cumulative gain or  
loss on the hedging instrument recognised in other 
comprehensive income is retained there until the 
forecasted transaction occurs. If a hedged 
transaction is no longer expected to occur, the  
net cumulative gain or loss recognised in other 
comprehensive income is transferred to the income 
statement for the period.
Investments
Investments in subsidiaries are stated at cost,  
less provision for any impairment.
Provisions
Provisions are recognised when the Group has  
a present obligation as a result of a past event,  
and it is probable that the Group will be required  
to settle that obligation. Provisions are measured  
at the Directors’ best estimate of the expenditure 
required to settle the obligation at the balance sheet 
date, and are discounted to present value where  
the effect is material.
Share-based payments
The Group issues equity-settled share-based 
payments to certain employees. Equity-settled 
share-based payments are measured at fair value 
(excluding the effect of non market-based vesting 
conditions) at the date of grant. The fair value 
determined at the grant date of the equity-settled 
share-based payments is expensed on a straight-line 
basis over the vesting period and is recognised as  
an employee expense with a corresponding increase 
in equity, based on the Group’s estimate of shares 
that will eventually vest and adjusted for the effect 
of non market-based vesting conditions.
Fair value is measured by use of the Black-Scholes 
model or the binomial method as appropriate. 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.
Intangible assets
Customer relationships
Customer relationships are measured as the present 
value of cash flows attributable to the relationship 
after deduction of appropriate contributory assets 
charged. The relationship is amortised over its 
expected useful life, typically three years.
Order book
Order book is the value of confirmed orders on  
the date of acquisition after appropriate costs have 
been deducted. The order book is amortised over 
the period in which it is expected to unwind.
8981_Silverdell_AR10_Mid/Back_TP.indd   45 10/12/10   11:22:33 46 Silverdell Plc Annual report and accounts 2010
4. Critical accounting judgements and key sources 
of estimation uncertainty 
The preparation of consolidated financial 
statements in conformity with IFRS requires 
management to make judgements, estimates and 
assumptions about the carrying amount of assets 
and liabilities and the amount of income and 
revenue recognised in the period. Actual results  
may differ from these estimates.
The key assumptions concerning the future, and 
other key sources of estimation uncertainty at the 
balance sheet date, that have a significant risk 
 of causing a material adjustment to the carrying 
amounts of assets and liabilities within the next 
financial year, are discussed below. 
Revenue and profit/margin recognition
The Group’s revenue recognition, turnover and  
long-term contracts policies are set out in the notes 
above. Management exercises judgement to 
estimate the total expected contract costs and 
determine the percentage of completion in order  
to recognise the appropriate revenue and profit  
in the period. The assessment of profitability  
and recognition is assessed on an ongoing basis, 
which ensures adequate controls are in place that 
appropriate amounts are calculated.
Recognition and measurement of intangible assets 
under IFRS 3 ‘Business Combinations’
In order to determine the value of the separately 
identifiable intangible assets on the acquisition of  
a business combination, management are required 
to make estimates on secured customer contracts, 
other contracts and customer relationships and 
goodwill. The Group engaged outside independent 
parties to perform these calculations and determine 
the fair value and estimated useful lives of these 
assets.
 
Impairment of goodwill and other intangible assets
There are a number of assumptions management 
have considered in performing impairment reviews 
of goodwill and intangible assets. Determining 
whether goodwill is impaired requires an estimation 
of the value in use of the cash-generating units to 
which goodwill has been allocated. The value in  
use calculation requires the Directors to estimate 
the future cash flows expected to arise from the 
cash-generating unit and a suitable discount rate in 
order to calculate present value. Note 13 details the 
assumptions that have been applied for goodwill.
5. Segmental information
The Group has two reportable segments, as 
described below, which are the Group’s strategic 
divisions. The strategic divisions offer different 
services and are managed separately because they 
have some differences in their risks and operating 
models. For each of the strategic divisions, the 
Group’s CEO (the chief operating decision maker) 
reviews internal management reports on at least  
a monthly basis. The following summary describes 
the operations in each of the Group’s reportable 
segments:
Remediation – provides services related to the 
direct remediation and removal of environmental 
risks, the principal two group companies in this 
segment being Silverdell UK and Kitsons.
Consulting – provides environmental survey, 
monitoring and project management services, the 
principal company in this segment being Redhill 
Analysts.
Unallocated items represent head-office and other 
Group-wide costs, together with the Group’s bank 
borrowings.
Information regarding the results of each reportable 
segment is included below. Performance is 
measured based on segment profit before tax as 
included in the internal management reports that 
are reviewed by the Group’s CEO. Segment profit  
is used to measure performance as management 
believes such information is the most relevant in 
evaluating the results of certain segments relative  
to other entities that operate within these industries.
FOR THE YEAR ENDED 30 SEPTEMBER 2010
nOTES TO THE COnSOLIDATED 
FInAn CIAL STATEMEnTS continued
8981_Silverdell_AR10_Mid/Back_TP.indd   46 10/12/10   11:22:33 Overview Business review Governance Financial statements
47 Silverdell Plc Annual report and accounts 2010
5. Segmental information continued
2010
Remediation
£’000
Consulting 
£’000
Unallocated
£’000
Group
£’000
For the year ended 30 September 2010
Revenue
Total revenue 50,562 6,404 – 56,966
Less: between segments (221) (71) – (292)
External revenue 50,341 6,333 – 56,674
    
Sales between segments are charged at prevailing market prices.
2010
Remediation
£’000
Consulting
£’000
Unallocated
£’000
Group
£’000
For the year ended 30 September 2010
Result
Operating profit before amortisation  
 and non-recurring items 3,643 897 (1,435) 3,105
Intangible assets amortisation (515) (86) – (601)
Finance costs 10 (13) (669) (672)
Profit/(loss) before tax 3,138 798 (2,104) 1,832
Taxation (1,329) (262) 496 (1,095)
Loss for the year 1,809 536 (1,608) 737
At 30 September 2010
Balance sheet
Total assets 28,040 8,129 385 36,554
Total liabilities (9,551) (850) (7,200) (17,601)
Other information
Capital expenditure 293 52 52 397
Depreciation 573 111 17 701
    
As the Group’s activities are almost entirely based in the UK, no geographic segmental analysis is required.
2009 
Remediation
£’000
Consulting
£’000
Unallocated
£’000
Group
£’000
For the year ended 30 September 2009
Revenue
Total revenue 53,839 6,771 – 60,610
Less: between segments (983) (118) – (1,101)
External revenue 52,856 6,653 – 59,509
    
8981_Silverdell_AR10_Mid/Back_TP.indd   47 10/12/10   11:22:33 48 Silverdell Plc Annual report and accounts 2010
5. Segmental information continued
Sales between segments are charged at prevailing market prices.
2009 
Remediation
£’000
Consulting
£’000
Unallocated
£’000
Group
£’000
For the year ended 30 September 2009
Result
Operating profit before amortisation  
 and non-recurring items 2,457 562 (1,462) 1,557
Intangible assets amortisation (1,399) (343) – (1,742)
Goodwill impairment loss (4,802) – – (4,802)
Non-recurring expenses (229) (73) (388) (690)
Finance income – – 9 9
Finance costs (32) (15) (1,152) (1,199)
Loss before tax (4,005) 131 (2,993) (6,867)
Taxation (52) 31 847 826
Loss for the year (4,057) 162 (2,146) (6,041)
At 30 September 2009
Balance sheet
Total assets 28,430 7,437 1,932 37,799
Total liabilities (10,885) (694) (8,196) (19,775)
Other information
Capital expenditure (including acquisitions) 296 99 – 395
Depreciation 635 157 – 792
As the Group’s activities are almost entirely based in the UK, no geographic segmental analysis is required.
6. Operating profit/(loss)
2010
£’000
2009
£’000
Operating profit/(loss) is stated after charging/(crediting):
Goodwill impairment loss – 4,802
Share-based payment charge/(credit) 130 (77)
Amortisation of intangible assets (see note 14) 601 1,742
Depreciation of:
– owned assets 459 448
– assets held under finance leases 242 344
Auditors’ remuneration (see below) 75 143
Hire of plant and machinery 988 1,677
Operating lease rentals – land and buildings 337 354
(Profit)/loss on disposal of fixed assets (34) 13
Analysis of auditors remuneration 
Audit services
– audit of Company’s annual accounts 16 30
– audit of Company’s subsidiaries, pursuant to legislation 49 73
65 103
Other services
– other services pursuant to legislation – interim review – 25
– other services relating to tax compliance 10 15
Auditors’ remuneration 75 143
FOR THE YEAR ENDED 30 SEPTEMBER 2010
nOTES TO THE COnSOLIDATED 
FInAn CIAL STATEMEnTS continued
8981_Silverdell_AR10_Mid/Back_TP.indd   48 10/12/10   11:22:33 Overview Business review Governance Financial statements
49 Silverdell Plc Annual report and accounts 2010
7. Staff costs including Directors’ remuneration
Directors’ remuneration and transactions
Salary 
and fees
£’000
Benefits
£’000
Performance
bonus
£’000
Total
emoluments
£’000
Pension
contributions
£’000
Total
2010
£’000
Total
2009
£’000
n on-Executive Directors
Mark Watts
1
30 – – 30 – 30 30
David Williams
1
– – – – – – 26
Gordon Morrison
2
– – – – – – 12
Executive Directors
Stuart Doughty 75 – 5 80 – 80 44
Sean Nutley 200 3 – 203 22 225 226
Ian Johnson 171 2 – 173 – 173 39
Danny Spicer
3
– – – – – – 204
Chris Sims
3
– – – – – – 102
Total 476 5 5 486 22 508 683
1
 Payable to Marwyn LLP.
2
 Payable to Chaldean Management Ltd.
3
 Includes compensation for loss of office of £195,000 for Danny Spicer and £92,000 for Chris Sims.
The pension contributions disclosed above were all in respect of money purchase arrangements.
Options over ordinary shares
The Directors’ interests in share options are disclosed in the Directors’ Report on page 31.
Staff costs
Employees 
2010
n umber
2009
Number
Average number of persons (including Directors) employed by the Group in the year:
Operational, sales and other 632 624
Administrative 142 130
774 754
The payroll costs in respect of the employees included in the table above were:
2010
£’000
2009
£’000
Salaries and wages 26,354 26,026
Social security costs 2,715 2,649
Pension costs 119 163
Share-based payment charge/(credit) 130 (77)
29,318 28,761
Certain subsidiary undertakings of the Group operate defined contribution pension schemes. The assets  
of the schemes are held separately from those of the Group by independently administered funds. 
8981_Silverdell_AR10_Mid/Back_TP.indd   49 10/12/10   11:22:33 50 Silverdell Plc Annual report and accounts 2010
7. Staff costs including directors’ remuneration continued
Remuneration of key management personnel
In accordance with IAS 24 Related Party Disclosures, key management personnel are those persons having 
authority and responsibility for planning, directing and controlling the activities of the entity, directly  
or indirectly, including any Director (Executive and Non Executive) of the Group.
2010
£’000
2009
£’000
Short-term employee benefits 899 1,202
Post-employment benefits 56 37
Key management personnel include members of the Board and the Managing Directors of the principal 
subsidiaries.
8. Finance income
An analysis of the Group’s finance income for the year is as follows:
2010
£’000
2009
£’000
Change in fair value of derivative financial instrument – 9
9. Finance costs
2010
£’000
2009
£’000
Interest on bank overdrafts and loans 662 974
Interest on obligation under finance leases 1 25
Change in fair value of derivative financial instrument 9 –
Non-recurring bank charges (see Note 11) – 200
Total finance costs 672 1,199
10. Tax on profit/(loss) on ordinary activities
Income tax recognised in profit or loss
2010
£’000
2009
£’000
Tax (charge)/credit comprises:
United Kingdom corporation tax based on the profit/(loss) for the year (915) (61)
Adjustment in respect of previous years (226) 228
Total current tax (expense)/credit (1,141) 167
Deferred tax income relating to the origination 
 and reversal of temporary differences 239 659
Adjustment in respect of previous years (193) –
Total deferred tax credit 46 659
Total tax (expense)/credit (1,095) 826
FOR THE YEAR ENDED 30 SEPTEMBER 2010
nOTES TO THE COnSOLIDATED 
FInAn CIAL STATEMEnTS continued
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51 Silverdell Plc Annual report and accounts 2010
10. Tax on profit/(loss) on ordinary activities continued
Income tax recognised in profit or loss continued
The charge for the year can be reconciled to the loss per the income statement as follows:
2010
£’000
2010
%
2009
£’000
2009
%
Profit/(loss) before tax 1,832 (6,867)
Income tax (expense)/credit calculated  
 at the standard rate of 28% (2009: 28%) (513) (28) 1,923 (28)
Share-based payment (charge)/credit (36) (2) 22 –
Effect of expenses that are not deductible  
 in determining taxable profit (127) (7) (1,364) 20
Marginal relief – – 17 –
Prior year adjustment (419) (23) 228 (4)
Income tax (charge)/credit recognised  
 in profit or loss (1,095) (60) 826 (12)
    
The Finance (No 2) Act 2010, which was substantively enacted on 20 July 2010, includes legislation reducing 
the main rate of corporation tax from 28% to 27% from 1 April 2011. The Directors are in the process  
of evaluating the impact these changes will have on future tax charges.
The Group’s planned level of capital investment is expected to remain at similar levels. Therefore, it expects 
to be able to claim allowances in excess of depreciation in future years, at a similar level to the current year.
 
There were no unrecognised deferred tax assets.
The movement in deferred tax was as follows:
Asset
£’000
Liability
£’000
At 1 October 2008 – (728)
Credited to income statement 88 571
Credited to other comprehensive income 32 –
At 1 October 2009 120 (157)
Credited to income statement (111) 157
Charged to other comprehensive income (24) –
Reclassified as liability 15 (15)
At 30 September 2010 – (15)
Deferred tax comprises:
2010
£’000
2009
£’000
Accelerated tax depreciation (34) 77
Intangible assets – (157)
Other 19 43
(15) (37)
   
8981_Silverdell_AR10_Mid/Back_TP.indd   51 10/12/10   11:22:34 52 Silverdell Plc Annual report and accounts 2010
11. n on-recurring expenses, impairments and amortisation
Non-recurring items, impairments and amortisation are shown separately on the face of the income 
statement in order to reflect the Group’s underlying financial performance. The items comprise  
the following:
2010
£’000
2009
£’000
Goodwill impairment  (see Note 13) – (4,802)
Amortisation of intangible assets  (see Note 14) (601) (1,742)
Non-recurring expenses  (see below) – (690)
Change in fair value of derivative  (see Note 17) – 9
Non-recurring bank charges (see below) – (200)
(601) (7,425)
Related income tax credit 157 673
Impact on post tax profit/(loss) (444) (6,752)
   
Non-recurring expenses in 2009 comprised severance costs for senior executives and professional fees 
incurred in connection with the renegotiation of the Group’s banking facilities. 
The change in fair value of a derivative arose from the interest rate cap contract entered into as part  
of the re-negotiation of the Group’s banking facilities.
Non-recurring bank charges of £200,000 were incurred during 2009 as a result of renegotiation of the 
banking facilities.
12. Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the 
weighted average number of ordinary shares during the year, determined in accordance with the provisions 
of IAS 33 ‘Earnings per share’.
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in 
issue on the assumption of conversion of all dilutive potential ordinary shares. Unexercised share options 
and warrants are determined to be anti-dilutive and are therefore excluded from the calculation of the 
diluted earnings per share.
Adjusted basic earnings per share is calculated by dividing the earnings attributed to ordinary shareholders, 
before intangible assets amortisation, share-based payment charges, non-recurring expenses and finance 
charges on deferred consideration, by the weighted average number of ordinary shares during the year.
Earnings £’000
2010
Earnings 
per share
Basic 
Pence
Diluted
Pence £’000
2009
Earnings
per share
Basic 
Pence
Diluted 
Pence
Profit/(loss) attributable to  
 ordinary shareholders 737 0.5 0.5 (6,041) (7.3) (7.3)
Non-recurring items, impairments,   
 amortisation and share-based payments 574 0.4 0.4 6,674 8.1 8.1
Profit for adjusted earnings per share 1,311 0.9 0.9 633 0.8 0.8
      
The adjusted numbers have been reported in order that the impact of the above charges against reported 
profit/(loss) can be fully appreciated.
FOR THE YEAR ENDED 30 SEPTEMBER 2010
nOTES TO THE COnSOLIDATED 
FInAn CIAL STATEMEnTS continued
8981_Silverdell_AR10_Mid/Back_TP.indd   52 10/12/10   11:22:34 Overview Business review Governance Financial statements
53 Silverdell Plc Annual report and accounts 2010
12. Earnings per share continued
Number of shares
2010
n o.
2009
No.
Weighted average number of ordinary shares used in calculation  
 of basic earnings per share 151,654,717 83,143,761
Effect of dilutive potential ordinary shares:
Share options 353,309 –
Weighted average number of ordinary shares used in calculation  
 of diluted earnings per share 152,008,026 83,143,761
    
13. Goodwill
£’000
Cost
At 1 October 2008 35,629
Adjustment to provision for deferred consideration (18)
At 30 September 2009 and 30 September 2010 35,611
£’000
Accumulated impairment losses 
At 1 October 2008 (14,653)
Impairment losses reported in the year ended 30 September 2009 (4,802)
At 30 September 2009 and 30 September 2010 (19,455)
Carrying amount 
At 30 September 2009 and 30 September 2010 16,156
  
The carrying amount of goodwill relates to the Group’s two business segments as follows:
2010
£’000
2009
£’000
Remediation 10,869 10,869
Consulting 5,287 5,287
16,156 16,156
   
The Group tests goodwill annually for impairment or more frequently if there are indications that goodwill 
might be impaired. Goodwill is allocated for impairment testing to cash generating units (‘CGU’) which 
reflects how it is monitored for internal management purposes. The recoverable amounts of the CGUs are 
determined from value in use calculations. Value in use is calculated using pre-tax cash flow projections 
based on the financial budgets and business plans covering a three year period, which take into account 
historical trends and market conditions, which have been approved by the Board. The key assumptions for 
the value in use calculations are those regarding the discount rates and growth rates for the period. 
Management estimates discount rates using pre-tax rates that reflect current market assessments of the 
time value of money and the risks specific to the CGUs, equivalent to a real pre-tax discount rate which 
average 12% (2009: 12%). The growth rates are based on industry growth forecasts and long-term growth 
in gross domestic product. 
The Group prepares cash flow forecasts derived from the most recent financial budgets approved by 
management for the next three years and extrapolates cash flows for the following years based on an 
estimated annual growth rate of 2.4% (2009: 2.4%). The rates do not exceed the average long-term growth 
rate for the relevant markets. The rates used to discount the cash flows in both 2010 and 2009 for all CGUs 
have been based on the Group’s adjusted weighted average cost of capital. 
8981_Silverdell_AR10_Mid/Back_TP.indd   53 10/12/10   11:22:34 54 Silverdell Plc Annual report and accounts 2010
13. Goodwill continued
The Group’s impairment review is sensitive to changes in the key assumptions used. The major assumptions 
that result in significant sensitivities are the revenue growth and the discount rate. Given the Group’s 
sensitivity analysis, a reasonably possible change in a single assumption will not result in further impairments.
 
At 30 September 2010, goodwill was allocated to the Kitsons Environmental Europe Limited (‘Kitsons’), 
Silverdell (UK) Limited (‘Silverdell UK’) and Redhill Analysts Limited (‘Redhills’) CGUs. 
As a result of impairment reviews in previous years, the goodwill relating to these CGUs was reduced to its 
recoverable amount by recognising accumulated impairment losses as follows:  
£’000
Silverdell UK 9,990
Kitsons 8,366
Redhills 1,099
19,455
14. Other intangible assets
Order 
backlog
Customer
contracts Total
Cost
At 1 October 2009 and 30 September 2010 1,480 5,434 6,914
Accumulated amortisation 
At 1 October 2008 1,472 3,099 4,571
Amortisation charge 8 1,734 1,742
At 30 September 2009 1,480 4,833 6,313
Amortisation charge – 601 601
At 30 September 2010 1,480 5,434 6,914
Carrying amount
At 30 September 2010 – – –
At 30 September 2009 – 601 601
    
All amortisation charges in the year have been included in administrative expenses.
 
FOR THE YEAR ENDED 30 SEPTEMBER 2010
nOTES TO THE COnSOLIDATED 
FInAn CIAL STATEMEnTS continued
8981_Silverdell_AR10_Mid/Back_TP.indd   54 10/12/10   11:22:34 Overview Business review Governance Financial statements
55 Silverdell Plc Annual report and accounts 2010
15. Property, plant and equipment
Freehold and
leasehold
property
£’000
Motor
vehicles
£’000
Office
equipment
 £’000
Plant and
machinery
£’000
Total
£’000
Cost
At 1 October 2008 629 1,598 853 2,448 5,528
Additions 19 41 7 328 395
Disposals – (463) – (2) (465)
At 1 October 2009 648 1,176 860 2,774 5,458
Additions 41 59 72 225 397
Disposals – (451) – (10) (461)
At 30 September 2010 689 784 932 2,989 5,394
Accumulated depreciation
At 1 October 2008 102 770 555 1,292 2,719
Depreciation charge for the year – (394) – (2) (396)
Disposals 6 399 69 318 792
At 30 September 2009 108 775 624 1,608 3,115
Depreciation charge for the year 38 258 122 283 671
Disposals – (418) – (3) (421)
At 30 September 2010 146 615 746 1,888 3,395
Carrying amount
At 30 September 2010 543 169 186 1,101 1,999
At 30 September 2009 540 401 236 1,166 2,343
     
The net book value of assets held under finance leases is £332,000 (2009: £730,000).
The book value of freehold land not depreciated is £219,000 (2009: £219,000). The net book value of 
freehold buildings is £324,000 (2009: £321,000) and the depreciation charge on freehold buildings was 
£38,000 (2009: £nil).
 
16. Inventories
2010
£’000
2009
£’000
Raw materials and consumables 266 514
Work in progress 732 1,110
998 1,624
   
The cost of inventories recognised as an expense and included in ‘cost of sales’ amounted to £2,566,000 
(2009: £3,672,000). The Directors consider that the carrying amount of inventories approximates to their 
fair value. 
8981_Silverdell_AR10_Mid/Back_TP.indd   55 10/12/10   11:22:34 56 Silverdell Plc Annual report and accounts 2010
17. Derivative financial assets/(liabilities)
2010
£’000
2009
£’000
Financial asset:
Interest rate cap – 9
Financial liability interest rate swap
Interest rate swap (71) (157)
   
The notional principal amount of the outstanding interest rate cap contract was £1,247,500 (2009: £798,000). 
The interest cap was at LIBOR at 3.5% and the contract expires on 31 December 2011. This derivative is 
treated as at FVTPL – (held for trading).
The notional principal amount of the outstanding interest rate swap contract at 30 September 2010 was 
£1,750,000 (2009: £2,750,000). At 30 September 2010, the fixed interest rate was 5.8% and the main 
floating rates were LIBOR. 
18. Trade and other receivables
2010
£’000
2009
£’000
n on-current
Other receivables (see Note 22) 1,001 1,001
Total non-current 1,001 1,001
Current
Trade receivables 10,797 11,362
Less: provision for impairment (243) (353
Trade receivables net 10,554 11,009
Prepayments and accrued income 1,150 745
Due from customers for contract work 1,070 937
Total current 12,774 12,691
Total 13,775 13,692
    
The average credit period taken on sales is 58 days (2009: 60 days). The Group has different provision 
policies for its various divisions which have been determined by references to past default experience  
and specific provisions are raised after taking an individual view to the debtor’s recoverability. 
Due to the nature of the Group’s operations, it is common practice for customers to hold retentions in 
respect to contracts completed. Retentions held by customers as at 30 September 2010 were £1,086,000 
(2009: £1,084,000).
The Group’s exposure to credit risk and impairment losses related to trade and other receivables are 
disclosed in Note 21.
Under the normal course of the business, the Group does not charge interest on its overdue receivables.
The Directors consider that the carrying amount of trade and other receivables approximates to their  
fair value.
FOR THE YEAR ENDED 30 SEPTEMBER 2010
nOTES TO THE COnSOLIDATED 
FInAn CIAL STATEMEnTS continued
8981_Silverdell_AR10_Mid/Back_TP.indd   56 10/12/10   11:22:34 Overview Business review Governance Financial statements
57 Silverdell Plc Annual report and accounts 2010
19. Analysis of net debt position
2009
£’000
Cash flow
£’000
Other 
non-cash
changes
£’000
2010
£’000
Cash at bank and in hand 2,885 741 – 3,626
Bank loans (6,256) 950 (207) (5,513)
Bank overdraft (1,160) (1,180) – (2,340)
Finance lease obligations (132) 124 (33) (41)
(4,663) 635 (240) (4,268)
    
The Group’s exposure to interest rate risks and a sensitivity analysis for financial assets and liabilities is 
disclosed in Note 21.
 
20. Borrowings
2010
£’000
2009
£’000
n on-current
Bank loans 4,754 4,700
Obligations under finance lease contracts 23 –
4,777 4,700
Current
Bank loans and overdrafts 3,099 2,716
Obligations under finance lease contracts 18 132
3,117 2,848
Total 7,894 7,548
Further information on the principal features of the Group’s borrowings is set out in Note 21.
The Group’s bank overdraft and loan facilities are secured by debentures over the assets of the Group.  
The debenture agreement includes a fixed and floating charge over the assets of the Group. Finance lease 
liabilities are secured on the assets to which the contracts relate.
The term loan and revolving credit facility are subject to interest at variable rates over LIBOR. To hedge  
the interest rate risk the Group has rolled forward the pre-existing £1,750,000 interest rate swap; the 
hedge amount amortises by £200,000 per quarter and the rate on the amortised amount is fixed at 5.8%.  
A further £1,247,500 was subject to an interest rate cap agreement at 30 September 2010, placing a 3.5% 
cap on 3-month LIBOR. The amount of notional borrowings covered by the cap agreement is scheduled  
to vary each quarter in order to achieve the Group’s objective of 55% of certain elements of its banking 
facilities being covered by the combined hedge. 
The £3,000,000 term loan and the £2,500,000 revolving credit facility are both committed to 31 March 
2014. The term loan amortises at £200,000 per quarter. The overdraft facility and finance leases are also  
at variable rates of interest. 
As at 30 September 2010, the Group had an undrawn committed revolving credit facility of £nil (2009: £nil) 
and an uncommitted, undrawn, net overdraft facility of £2,750,000 (2009: £2,000,000). The overdraft 
facility has no fixed expiry date, being reviewed on an annual basis. 
8981_Silverdell_AR10_Mid/Back_TP.indd   57 10/12/10   11:22:34 58 Silverdell Plc Annual report and accounts 2010
21. Financial instruments
(a) Financial risk management
All companies are exposed to capital and market risk, but the Board considers the Group’s key elements  
of financial risk to be: 
Credit risk • 
Liquidity risk • 
Interest rate risk • 
This note presents information about the Group’s exposure to each of the above risks, the Group’s 
management of capital, and the Group’s objectives, policies and procedures for measuring and managing 
risk. Please refer also to the principal business risks in the statement on Key Risks and Mitigations on page 26.
Capital risk management 
The Board is responsible for overall Group strategy, acquisition and divestment policy, approval of major 
capital expenditure projects and consideration of significant financing matters. The Board manages its 
capital to ensure that entities in the Group will be able to continue as a going concern while maximising the 
return to stakeholders as well as sustaining the future development of the business. In order to maintain  
or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return 
capital to shareholders, issue new shares or sell assets to reduce debt. 
The capital structure of the Group consists of debt, which includes the borrowings disclosed in Note 20, 
cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued 
capital, reserves and retained earnings as set out in the Statement of Changes in Equity.
Market risk
Market risk is the risk that changes in the market prices, such as foreign exchange rates and interest rates, 
will affect the Group’s income or the value of its holdings of financial instruments. The objective of market 
risk management is to manage and control market risk exposures within acceptable parameters, while 
optimising the return on risk.
The Group’s activities expose it mainly to the financial risks of changes in interest rates. The Board reviews 
and agrees the policy for managing interest rate risk and foreign currency risk and the potential impact  
of any significant economic changes are discussed at monthly Board meetings. 
The Group reviews its treasury position daily, placing any surplus cash on short-term deposits. 
 
(b) Categories of financial instruments
Details of the significant accounting policies and methods adopted, including the criteria for recognition, 
the basis of measurement and the basis on which income and expenses are recognised in respect  
of each class of financial asset, financial liability and equity instrument are disclosed in Note 3 to the 
financial statements.
2010
£’000
2009
£’000
Financial assets
1
At amortised cost:
Loans and receivables 10,554 11,009
Cash and cash equivalents 3,626 2,885
Derivatives – FVTPL (held for trading) – 9
Total financial assets 14,180 13,903
1
  Financial assets exclude prepayments, amounts due under long-term contracts, other receivables and other non-current receivables as 
these are not considered to represent contractual entitlements to receive cash or other financial assets.
FOR THE YEAR ENDED 30 SEPTEMBER 2010
nOTES TO THE COnSOLIDATED 
FInAn CIAL STATEMEnTS continued
8981_Silverdell_AR10_Mid/Back_TP.indd   58 10/12/10   11:22:34 Overview Business review Governance Financial statements
59 Silverdell Plc Annual report and accounts 2010
21. Financial instruments continued
(b) Categories of financial instruments continued
2010
£’000
2009
£’000
Financial liabilities
2
At amortised cost:
Trade and other payables 6,381 9,202
Obligations under finance leases 41 132
Other borrowings and overdrafts 7,853 7,416
Derivatives – designated as cash flow hedges 71 157
Total financial liabilities 14,346 16,907
2
  Financial liabilities exclude tax and social security, deferred income and other non-current payables as these are not considered to 
represent contractual obligations to transfer cash or other financial assets.
(c) Credit risk
The Group’s principal financial assets are cash and cash equivalents and trade and other receivables, which 
represent the Group’s maximum exposure to credit risk in relation to financial assets.
The Group’s credit risk is primarily attributable to its trade and other receivables. The amounts presented  
in the consolidated balance sheet are net of allowances for doubtful receivables, estimated by the Group’s 
management based on prior experience and their assessment of the current economic environment.
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in 
financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties 
as a means of mitigating the risk of financial loss from defaults. 
The carrying amount of financial assets recorded in the financial statements, which is net of impairment 
losses, represents the Group’s maximum exposure to credit risk. 
The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the 
aggregate value of transactions concluded is spread amongst approved financial institutions. 
 
Trade receivables
Trade receivables consist of a large number of customers, spread across diverse areas within the UK and 
the Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. 
The demographics of the Group’s customer base, including default risk of the industry and country,  
in which the customers operate, has less of an influence on credit risk.
The Directors consider that the carrying amount of trade and other receivables, which are non-interest 
bearing, approximates to their fair value. 
The Group does not have any significant credit risk exposure to any single counterparty or any Group  
of counterparties having similar characteristics. The Group defines counterparties as having similar 
characteristics if they are related entities. 
Before accepting any new customer, the Group runs credit checks to assess the potential customer’s credit 
quality. The Group monitors exposure to individual clients and all customers are subject to standard terms 
of payment for each division which are, on average, 30 days.
8981_Silverdell_AR10_Mid/Back_TP.indd   59 10/12/10   11:22:34 60 Silverdell Plc Annual report and accounts 2010
21. Financial instruments continued
(c) Credit risk continued
The analysis of trade receivables in excess of 30 days old but not impaired is as follows:
2010
£’000
2009
£’000
31 – 60 days 2,479 2,800
61 – 90 days 859 1,461
91 – 120 days 311 444
121 – 150 days 148 550
More than 151 days 715 524
4,512 5,779
The Group establishes an allowance for impairment that represents its estimate of incurred losses in 
respect of trade and other receivables and investments when there is objective evidence that the asset is 
impaired. The main components of this allowance are a specific loss component that relates to individually 
significant exposures, and a collective loss component established for groups of similar assets in respect  
of losses that have been incurred but not yet identified. The collective loss allowance is determined by 
references to past default experience and historical data of payment statistics for similar financial assets.
 
Movement in the provision for impairment:
2010
£’000
2009
£’000
Balance at beginning of the year 353 708
Increase in impairment provision recognised 167 12
Receivables written off as uncollectible (277) (367)
243 353
    
The creation and release of provisions for impaired receivables has been included in ‘administrative 
expenses’ in the income statement.
In determining the recoverability of a trade receivable, the Group considers any change in the credit quality 
of the trade receivable from the date credit was initially granted up to the reporting date. The concentration 
of credit risk is limited due to the customer base being large and unrelated. Accordingly, the Directors 
believe that there is no further credit provision required in excess of the above amount.
FOR THE YEAR ENDED 30 SEPTEMBER 2010
nOTES TO THE COnSOLIDATED 
FInAn CIAL STATEMEnTS continued
8981_Silverdell_AR10_Mid/Back_TP.indd   60 10/12/10   11:22:34 Overview Business review Governance Financial statements
61 Silverdell Plc Annual report and accounts 2010
21. Financial instruments continued
(d) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. 
Responsibility for liquidity risk management rests with the Board of Directors. The Group manages liquidity 
risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously 
monitoring bank covenant compliance, forecast and actual cash flows and matching the maturity profiles  
of financial assets and liabilities. Details of additional undrawn facilities that the Group has at its disposal  
to further reduce liquidity risk are disclosed in Note 20.
Liquidity and interest risk tables
The following tables detail the Group’s expected maturity for its financial assets and liabilities. The tables 
below have been drawn up based on the undiscounted contractual maturities of the financial assets  
and liabilities. No material interest is expected to accrue on the interest bearing assets, which represent 
cash deposits.
Undiscounted cash flows
30 September 2010
Book
 value
£’000 
Less than
 1 month
£’000
1-3
months
£’000
3 months
 to 1 year
£’000
1-5 years
£’000
5+ years
£’000
Total
£’000
Financial assets
Non-interest bearing 10,554 10,554 – – – – 10,554
Variable interest rate instruments 3,626 3,626 – – – – 3,626
14,180 14,180 – – – – 14,180
Financial liabilities
Non-interest bearing 6,422 6,422 – – – – 6,422
Variable interest rate instruments 7,924 2,344 290 853 5,253 – 8,740
14,346 8,766 290 853 5,253 – 15,162
30 September 2009
Book 
value
£’000 
Less than
 1 month
£’000
1-3
 months
£’000
3 months
 to 1 year
£’000
1-5 years
£’000
5+ years
£’000
Total
£’000
Financial assets
Non-interest bearing 11,018 11,018 – – – – 11,018
Variable interest rate instruments 2,885 2,885 – – – – 2,885
13,903 13,903 – – – – 13,903
Financial liabilities
Non-interest bearing 9,359 9,359 – – – – 9,359
Variable interest rate instruments 7,548 1,223 1,210 1,211 5,113 – 8,757
16,907 10,582 1,210 1,211 5,113 – 18,116
8981_Silverdell_AR10_Mid/Back_TP.indd   61 10/12/10   11:22:35 62 Silverdell Plc Annual report and accounts 2010
21. Financial instruments continued
(e) Interest rate risk
Interest rate risk is the risk that the value of a financial instrument or cash flows associated with the 
instrument, will fluctuate due to changes in market interest rates. As the Group has no significant interest-
bearing assets, the Group’s income and operating cash flows are substantially independent of changes  
in market interest rates.
The Group is exposed to interest rate risk primarily though borrowing funds at floating interest rates. 
Borrowings issued at variable rates expose the Group to cash flow interest rate risk. The Group manages 
interest rate risk on borrowings by ensuring access to diverse funding and through monitoring interest rate 
movements with weekly reports. 
Interest rate risk is reviewed on a regular basis and if considered necessary a strategy to minimise any 
potential risk through interest rate swaps will be discussed and implemented. 
Based on the various scenarios, the Group manages its cash flow interest rate risk by using a combination 
of floating-to-fixed interest rate swaps and an interest rate cap. The interest rate swap has the economic 
effect of converting borrowings from floating rates to fixed rates. Generally the Group raises long-term 
borrowings at floating rates and swaps them into fixed rates that are lower than those available if the 
Group borrowed at fixed rates directly. Under the interest rate swap, the Group agrees with other parties 
to exchange, at specified intervals (primarily quarterly), the difference between fixed contract rates and 
floating rate instrument amounts calculated by reference to the agreed notional amounts. The interest rate 
cap ensures that, for the specified portion of borrowings, floating rate interest will apply only up to  
a specified ceiling.
The Group’s exposures to interest rates on financial assets and financial liabilities are detailed below. 
Interest rate sensitivity analysis
If interest rates had been 100 basis points higher or lower and all other variables were held constant, the 
Group’s profit for the year and total equity at the year end would both increase or decrease by £61,000 
(2009: £48,000) in respect to exposure to the Group’s borrowings and cash and cash equivalents. For 
floating rate liabilities the analysis is prepared assuming the amount of the liability at the balance sheet 
date was outstanding for the whole period.
(f) Fair value of financial instruments
The fair value of interest rate swaps is calculated at the present value of the estimated future cash flows.
The Directors consider that the carrying amounts of financial assets and financial liabilities recorded  
at amortised cost in the financial statements approximate to their fair values due to the short maturity  
of the instruments or because they bear interest at rates approximate to the market. 
 
FOR THE YEAR ENDED 30 SEPTEMBER 2010
nOTES TO THE COnSOLIDATED 
FInAn CIAL STATEMEnTS continued
8981_Silverdell_AR10_Mid/Back_TP.indd   62 10/12/10   11:22:35 Overview Business review Governance Financial statements
63 Silverdell Plc Annual report and accounts 2010
22. Trade and other payables
2010
£’000
2009
£’000
Non-current
Other payables
1,001 1,001
In 2006, the Group recorded a provision of £1.0m in respect of a contingent liability arising on the 
acquisition of Silverdell (UK) Limited. The Group has a corresponding asset relating to the indemnities from 
the vendors of Silverdell (UK) Limited in respect of this provision.
2010
£’000
2009
£’000
Current
Trade payables 4,037 5,061
Other taxation and social security 1,733 1,710
Other payables 2,344 4,141
8,114 10,912
    
An analysis of the maturity of debt is given in Note 21(d). 
The Directors consider that the carrying amount of trade payables approximates to their fair value. 
The Group’s policy is to fix payment terms when agreeing the terms of each transaction. It is the Group’s 
general policy to pay suppliers according to the agreed terms and conditions, provided that the supplier  
has complied with those terms. 
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing 
cost and they include retention amounts held over defect liability periods. The average credit period taken 
for trade purchases is 54 days (2009: 55 days) for the Group. The Group has financial risk management 
policies in place to ensure that all payables are paid within the credit timeframe.
There are no suppliers who represent more than 10% of the total balance of trade creditors in either 2010 
or 2009.
The Group has financial risk management policies in place to ensure that all payables are paid within the 
credit timeframe. Therefore, under the normal course of business, the Group is not charged interest  
on overdue payables.
 
8981_Silverdell_AR10_Mid/Back_TP.indd   63 10/12/10   11:22:35 64 Silverdell Plc Annual report and accounts 2010
23. Share capital
 2010 2009
n o. £’000 No. £’000
Authorised:
Ordinary shares of 1p each 260,000,000 2,600 260,000,000 2,600
Deferred shares of 1p each – – 1,132,210,521 11,322
Total 260,000,000 2,600 1,392,210,521 13,922
Allotted, called up and fully paid
Ordinary shares of 1p each 151,654,717 1,516 151,654,717 1,516
Deferred shares of 1p each – – 374,892,471 3,749
Total 151,654,717 1,516 526,547,188 5,265
Movement in issued share capital
At 1 October – 10p ordinary shares 526,547,188 5,265 41,654,717 4,165
1p deferred shares cancelled (374,892,471) (3,749) – –
10p ordinary shares cancelled – – (41,654,717) (4,165)
1p ordinary shares created – – 41,654,717 416
1p deferred shares created – – 374,892,471 3,749
Placing of new 1p ordinary shares – – 110,000,000 1,100
At 30 September 151,654,717 1,516 526,547,188 5,265
    
On 18 May 2009 the Group completed a placing of 110 million new 1p ordinary shares at 5p per share, 
raising cash funds of £5.5m (before expenses) and giving rise to a share premium of £4.4m. In preparation 
for the placing the Company’s ordinary shares of 10p each were divided into ordinary shares of 1p and 
deferred shares of 1p in a capital reorganisation. Each shareholder’s proportionate interest in the 
Company’s equity was unchanged as a result.
In March 2010 the Company cancelled all the 1p deferred shares in issue.
 
24. Capital and other commitments
At 30 September 2010, the Group had no capital commitments (2009: £nil).
Operating leases
The Group had outstanding total commitments under non-cancellable operating leases at 30 September 
which fall due as follows:
 2010 2009
Land and
buildings
£’000
Other
£’000
Land and
buildings
£’000
Other
£’000
Operating leases which expire:
Within one year 432 546 244 674
Within two to five years 620 257 547 475
After five years 229 66 91 –
1,281 869 882 1,149
    
FOR THE YEAR ENDED 30 SEPTEMBER 2010
nOTES TO THE COnSOLIDATED 
FInAn CIAL STATEMEnTS continued
8981_Silverdell_AR10_Mid/Back_TP.indd   64 10/12/10   11:22:35 Overview Business review Governance Financial statements
65 Silverdell Plc Annual report and accounts 2010
25. Employee share schemes 
The Group has adopted share incentive arrangement plans as set out below.
Equity-settled share option scheme
The Group has a share option scheme for certain employees of the Group. Options are exercisable at  
a price equal to the average quoted market price of the Company’s shares on the date of grant. The vesting 
period is three years. If the options remain unexercised after a period of five years from the date of grant, 
the options expire. Options are forfeited if the employee leaves the Group before the options vest.
Details of the share options outstanding during the year are as follows:
 2010 2009
n umber 
of share 
options
Weighted
average
exercise price
£
Number
of share 
options
Weighted
average
exercise price 
£
Outstanding at beginning of year 2,905,104 0.945 3,610,472 1.028
Granted during the year 16,710,725 0.087 – –
Forfeited during the year (3,635,903) 0.773 (705,368) 0.938
Outstanding at the end of the year 15,979,926 0.087 2,905,104 0.945
Exercisable at the end of the year – – – –
    
The options outstanding at 30 September 2010 had a weighted average remaining contractual life of  
nine years (2009: 2.02 years). In 2010, options over 16,710,725 shares were granted on 24 March 2010.  
The aggregate of the estimated fair values of the options granted on that date is £773,000.
Of the options granted during the year, 5,400,000 awarded to the Chairman and Executive Directors have  
a market-based performance condition, dependent on the level of the Company’s future share price.  
The remaining options are subject to performance conditions relating to the Company’s future adjusted 
earnings per share.
The options with market-based performance conditions were valued using the binomial method, while 
other options were valued using the Black Scholes option pricing model.
The inputs into the valuation models used for options granted each year are as follows:
2010
£’000
2009
£’000
Weighted average share price £0.090 –
Weighted average exercise price £0.087 –
Expected volatility 77% –
Expected life 6.5 years –
Risk-free rate 3.35% –
Expected dividend yield 0% –
    
Expected volatility was determined by calculating the historical volatility of the Group’s share price over  
the previous 1.5 years. 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 with a term similar to the 
expected life of the option.
8981_Silverdell_AR10_Mid/Back_TP.indd   65 10/12/10   11:22:35 66 Silverdell Plc Annual report and accounts 2010
26. Contingent liabilities
There are Group cross guarantees from the Company for all monies due to certain of the Group’s banks  
and surety lenders. No monies were outstanding at 30 September 2010 (2009: £nil). In the normal course 
of business there are contingent liabilities including the provision of bonds in respect of completed and 
uncompleted contracts.
27. Related party transactions
During the year to 30 September 2010, the Group paid £30,000 (2009: £176,000) to Marwyn Capital LLP  
for corporate finance services and Directors’ fees and £92,071 (2009: £55,000) to Marwyn Partners Limited 
for rent and other office services. At the end of that year £nil (2009: £nil) remained outstanding.
Mark Watts is a partner in Marwyn Capital LLP and Marwyn Investment Management LLP and a 
shareholder in Marwyn Investments Group Limited, which owns 100% of Marwyn Partners Limited. 
Marwyn Neptune Fund LP is managed by Marwyn Investment Management LLP and beneficially owns 
shares and warrants in the Group.
During the year to 30 September 2010, Kalistar LLP , a partnership of certain of the Executive Directors  
of Silverdell (UK) Limited, charged £48,000 (2009: £48,000) for the provision of cars used by some of the 
Directors of Silverdell (UK) Limited. At the end of that year £nil (2009: £nil) remained outstanding.
One property occupied by Silverdell (UK) Limited is owned by the pension fund in which Sean Nutley has  
an interest. The property is subject to a market rent of £29,000 (2009: £29,000) per annum and £nil  
(2009: £7,000) remained outstanding at the year end.
FOR THE YEAR ENDED 30 SEPTEMBER 2010
nOTES TO THE COnSOLIDATED 
FInAn CIAL STATEMEnTS continued
8981_Silverdell_AR10_Mid/Back_TP.indd   66 10/12/10   11:22:35 Overview Business review Governance Financial statements
67 Silverdell Plc Annual report and accounts 2010
AT 30 SEPTEMBER 2010
COMPAny BALAnCE SHEET
Notes
2010
£’000
2009
£’000
Fixed assets
Investments 30 23,943 23,793
Tangible assets 31 38 –
23,981 23,793
Current assets
Debtors: amounts falling due within one year 32 6,371 1,600
Creditors: amounts falling due within one year 33 (10,129) (3,956)
n et current liabilities (3,758) (2,356)
Total assets less current liabilities 20,223 21,437
Creditors: amounts falling due after one year 33 (4,755) (4,493)
Total net assets 15,468 16,944
Capital and reserves
Called up share capital 23 1,516 5,265
Share premium account 34 17,813 17,813
Equity reserve 34 464 334
Other reserve 34 16,635 16,635
Capital reserve 34 3,749 –
Profit and loss account 34 (24,709) (23,103)
Total shareholders’ funds 15,468 16,944
     
The financial statements were approved by the Board of Directors and authorised for issue on 
30 November 2010. 
They were signed on behalf of the Board of Directors.
 
Ian Johnson
Director
Company number: 5755897
8981_Silverdell_AR10_Mid/Back_TP.indd   67 10/12/10   11:22:35 68 Silverdell Plc Annual report and accounts 2010
AT 30 SEPTEMBER 2010
n otes to the company  
FInAn CIAL STATEMEnTS
28. Significant accounting policies
The separate financial statements of the Company have been prepared on the historical cost basis and 
under the going concern assumption. The accounting policies are summarised below and have been 
applied consistently throughout the year and the preceding year. The separate financial statements  
are presented as required by the Companies Act 2006. As permitted by that Act, the separate financial 
statements have been prepared in accordance with United Kingdom accounting standards.
Taxation
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 and expense se that are taxable 
or deductible in other years and it further excludes items which are never taxable or deductible. The 
Company’s liability for current tax is calculated using tax rates that have been enacted or substantively 
enacted at the balance sheet date. 
Deferred taxation is provided in full on all timing differences that result in an obligation at the balance 
sheet date to pay more tax, or a right to pay less tax, at a future date, subject to the recoverability of 
deferred tax assets. Deferred tax assets and liabilities are not discounted.
Share-based payments
The Company has applied the requirements of FRS 20 Share-based payment. In accordance with the 
transitional provisions, FRS 20 has been applied to all grants of equity instruments after 7 November 2002 
that had not vested as at 1 January 2005.
The Company makes equity settled share-based payments to the directors, which are measured at fair 
value at the date of grant. The fair value of share options issued with non-market vesting conditions has 
been calculated using the Black Scholes model. For all other share awards, the fair value is determined by 
reference to the market value of the share at the date of grant. For all share schemes with non-market 
related vesting conditions, the likelihood of vesting has been taken into account when determining the 
associated charge. Vesting assumptions are reviewed during each reporting period to ensure they reflect 
current expectations.
The Company also makes equity settled share-based payments to certain employees of certain subsidiary 
undertakings. Equity settled share-based payments that are made to employees of the Company’s 
subsidiaries are treated as increases in equity over the vesting period of the award, with a corresponding 
increase in the Company’s investments in subsidiaries, based on an estimate of the number of shares that 
will eventually vest.
Any payments received from subsidiaries are applied to reduce the related increases in investments in 
subsidiaries.
Accounting for share-based payments is the same as under IFRS 2 and details on the schemes and option 
pricing models relevant to the charge included in the Company financial statements are set out in Note 25 
to the consolidated financial statements of the Group for the year ended 30 September 2010.
Investments
Investments represent equity holdings in subsidiaries, joint ventures and associates and are held at cost 
less provision for impairment.
8981_Silverdell_AR10_Mid/Back_TP.indd   68 10/12/10   11:22:35 Overview Business review Governance Financial statements
69 Silverdell Plc Annual report and accounts 2010
28. Significant accounting policies continued
Tangible fixed assets and depreciation
Tangible fixed assets are stated at historic purchase cost net of accumulated depreciation and any provision 
for impairment. Cost comprises the original purchase price of the asset and the cost attributable to bringing 
the asset to its working condition for its intended use. Depreciation is provided on all tangible fixed assets, 
at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on  
a straight-line basis over its expected useful life, as follows:
Computer equipment 33% on cost
Impairments in the value of fixed assets are charged to the profit and loss account.
29. Parent Company profit and loss account
The Company has taken advantage of the exemption afforded by the Companies Act 2006 and has not 
presented its own profit and loss account. The loss for the year dealt with in the financial statements of the 
parent Company is £1,606,000 (2009: loss £4,560,000).
30. Investments
2010
£’000
Cost
At 1 October 2009 40,513
Capital contributions to subsidiaries arising from share-based payments 150
At 30 September 2010 40,663
Impairment
At 1 October 2009 and 30 September 2010 (16,720)
Carrying amount
At 30 September 2010 23,943
At 30 September 2009 23,793
    
Details of the principal subsidiary undertakings are as follows:
Company
Country 
of incorporation
Proportion of 
ordinary shares held Principal activity
Silverdell (UK) Ltd England and Wales 100% Asbestos and environmental services
Redhill Analysts Ltd England and Wales 100% Consultancy services
Kitsons Group Ltd England and Wales 100% Asbestos and environmental services
31. Tangible fixed assets
The Company acquired owned computer equipment with a cost of £55,000 (2009: £nil) during the year  
and incurred a depreciation charge on these assets of £17,000 (2009: £nil). As there were no fixed assets  
at the start of the year and no disposals, the closing net book value of tangible fixed assets was £38,000 
(2009: £nil).
8981_Silverdell_AR10_Mid/Back_TP.indd   69 10/12/10   11:22:35 70 Silverdell Plc Annual report and accounts 2010
32. Debtors
Amounts falling due within one year:
2010
£’000
2009
£’000
Other debtors and prepayments 265 94
Amounts due from Group undertakings 5,106 1,311
Corporation tax recoverable 985 195
Deferred tax asset 15 –
6,371 1,600
The deferred tax asset relates to timing differences on tangible fixed assets and arose during 2010.
33. Creditors
Amounts falling due within one year:
2010
£’000
2009
£’000
Bank overdraft 2,340 1,160
Bank loans 759 1,763
Other creditors and accruals 306 493
Amounts due to subsidiary undertakings 6,724 540
10,129 3,956
    
The carrying amount of trade payables approximates to their fair value.
Amounts falling due after more than one year:
2010
£’000
2009
£’000
Bank loan 4,755 4,493
    
Full details of the Company’s bank loans are disclosed in Notes 20 and 21 to the Group financial statements.
34. Share premium account and reserves
Share
 premium 
account
£’000
Equity
reserve
£’000
Other
reserves
£’000
Capital
reserve
£’000
Profit 
and loss
account
£’000
Total
£’000
At 1 October 2009 17,813 334 16,635 – (23,103) 11,679
Share-based payment charge in the year – 130 – – – 130
Retained loss for the year – – – – (1,606) (1,606)
Shares cancelled – – – 3,749 – 3,749
At 30 September 2010 17,813 464 16,635 3,749 (24,709) 13,952
     
Other reserves are not distributable and relate to the premium arising on shares issued as consideration for 
the acquisition of subsidiary companies and warrants issued to Marwyn Neptune Fund LP in consideration 
for their participation in placing of shares on 19 July 2006.
The capital reserve arose from the cancellation of the deferred shares of 1p in March 2010 and is 
considered to be a non-distributable reserve.
35. Related parties
The Company has taken advantage of the exemption available under FRS 8 Related Party Disclosures not  
to disclose details of transactions between wholly owned Group companies. 
AT 30 SEPTEMBER 2010
n otes to the company 
FInAn CIAL STATEMEnTS continued
8981_Silverdell_AR10_Mid/Back_TP.indd   70 10/12/10   11:22:35 Overview Business review Governance Financial statements
71 Silverdell Plc Annual report and accounts 2010
aDvisors  
Registered Office
14 Buckingham Street
London WC2N 6DF
Joint Company Secretary
TMF Corporate Secretarial Services Limited
Pellipar House
1st Floor
9 Cloak Lane
London EC4R 2RU 
Solicitors
DLA Piper UK LLP
101 Barbirolli Square
Bridgewater
Manchester M2 3DL 
Registrars
Capita IRG Plc
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Auditors
KPMG Audit Plc
8 Salisbury Square
London EC4Y 4BB
n OMAD and Broker
finnCap Ltd
60 New Broad Street
London EC2M 1JJ
f inancial pr
College Hill Associates Ltd
The Registry
Royal Mint Court
London EC3N 4QN
8981_Silverdell_AR10_Mid/Back_TP.indd   71 10/12/10   11:22:35 72 Silverdell Plc Annual report and accounts 2010
InFORMATIOn O n ASBESTOS-RELATED DISEASES
About mesothelioma
Mesothelioma, also called ‘malignant mesothelioma’ 
is pronounced ‘mee-zoh-thee-lee-oh-mah’. It is 
sometimes called ‘meso’ for short, by people who 
have, or work with, the disease. But people 
generally use the full name. 
Mesothelioma is one of the more difficult diseases 
that people, their doctors, friends and families have 
to face. It is a form of cancer, almost always caused 
by exposure to asbestos many years ago. 
What is mesothelioma?
Mesothelioma is a type of cancer. It happens in  
the ‘mesothelium’ – a thin lining in your chest and 
your abdomen. 
Mesothelioma in the chest
Your chest lining has two layers. The inner layer lines 
your lung, and the outer layer lines your chest wall. 
The space between the two layers contains a small 
amount of fluid. This lubricates the two surfaces and 
lets the lung and chest wall move and expand as you 
breathe. When a tumour grows within the chest 
lining, it causes it to thicken at first. Then it spreads 
within the space between the layers. The tumour 
often produces fluid, sometimes several litres. 
Mesothelioma in the abdomen
The abdominal cavity (the bit below the diaphragm) 
and bowel are also covered by a lining. Like the 
chest lining, it has two layers. The inner layer covers 
the organs in the abdomen (the stomach, etc), and 
the outer layer lines the wall of the abdomen. A 
tumour can start within this lining. It causes the 
lining around the organs in the abdomen to thicken. 
The link with asbestos
The connection between mesothelioma and 
asbestos was discovered in 1960. By 1960, the 
production and use of all forms of asbestos had 
increased world-wide. It continued to grow for  
at least 15 more years. This has been reflected by 
widespread cases of mesothelioma, 30 to 40 years 
later. 
It wasn’t until the mid 1970s that the dangers of 
asbestos became generally recognised and action 
was taken: the use of asbestos within industry 
began to be phased out, and Health and Safety 
regulations were updated.
Asbestos is the cause of over 90 per cent of cases  
of mesothelioma. The other causes of the disease 
are not fully understood. Smoking does not cause 
mesothelioma. Neither does exposure to modern 
fire-resistant materials (like fibreglass).
What is asbestosis?
Asbestosis is a type of scarring of the lung caused  
by asbestos fibres which have lodged in the lungs 
after being inhaled from the air. The scarring causes 
the lungs to shrink resulting in breathlessness. 
Asbestosis develops in some people who have 
breathed in a substantial amount of asbestos dust  
in the course of their work. It usually shows itself a 
long time after dust inhalation, often 20 or 30 years 
after exposure.
Other diseases caused by asbestos
Asbestos causes a number of diseases other than 
asbestosis. The term ‘asbestosis’ is commonly used 
by the media to refer to any diseases caused by 
asbestos, and this can lead to confusion. Other 
conditions caused by asbestos include: 
Pleural thickening: The pleura is a two-layered 
membrane which surrounds the lungs and lines the 
inside of the rib cage. Some asbestos fibres inhaled 
into lungs work their way out to the pleura and may 
cause fibrosis or scarring to develop there. This 
causes the pleura to thicken and this may show up 
on a chest X-ray. Pleural thickening occurs in two 
forms. Diffuse pleural thickening extends over  
a large area and may restrict expansion of the lungs, 
leading to breathlessness. Pleural plaques are 
localised areas of pleural thickening which usually 
do not interfere with breathing.
Lung cancer: Exposure to asbestos increases the risk 
of developing lung cancer. A very important point  
is that asbestos exposure and smoking act together 
to produce a huge risk of lung cancer in people 
exposed to both hazards. Fortunately, this means 
that people who have been exposed to asbestos  
can greatly reduce the risk of lung cancer by not 
smoking.
Source: British Lung Foundation
8981_Silverdell_AR10_Mid/Back_TP.indd   72 10/12/10   11:22:35 who we are 
Silverdell Plc works with major organisations both here 
and overseas, whose executives have a duty to protect 
people, assets and reputation.
Silverdell Group provides peace of mind through its 
Specialist Environmental Support Services, majoring  
on the management of asbestos and other hazardous 
materials. 
Which means our customers know that their interests  
are always protected.
The Group provides managed solutions for the assessment, survey, safe handling and removal of  
hazardous or potentially hazardous waste. The Group’s collaborative approach supports remediation  
and refurbishment projects, and serves ongoing maintenance contract requirements for access and 
regulatory compliance. Working across the public, private, construction and industrial markets,  
Silverdell is committed to creating an improved and protected environment in which to live and work.
From its origins in asbestos and licensed waste, the Group has developed into a high-quality specialist 
environmental support services and regeneration organisation providing innovative solutions which  
meet customer requirements safely and cost-effectively. 
This has been achieved through growth in key market sectors. These include the public sector, defence, 
nuclear, transport, utilities, construction, and industrial and petrochemical markets, which provide  
a diverse range of commercial opportunities. A track record of winning and delivering some of the largest 
and most challenging projects around the country is testament to the technical expertise within the Group.
o verview
01 Group financial highlights
02 Our approach
04 At a glance
06 Industry review
08 Chairman’s statement
10 Q&A with Sean Nutley,  
 Chief Executive
12 Delivering value
Business review
18  Chief Executive’s statement
25 Financial review
26 Key risks and mitigations  
g overnance
28   Directors and senior 
management 
30 Directors’ report
34  Corporate governance  
and risk management
35  Independent auditors’ report  
to the members of Silverdell Plc
Financial statements
36 Consolidated income statement
37  Consolidated statement  
of comprehensive income
38 Consolidated balance sheet
39  Consolidated statement  
of changes in equity
40  Consolidated statement  
of cash flows
41  Notes to the consolidated 
financial statements
67 Company balance sheet
68  Notes to the Company 
financial statements
71  Advisors
72  Information on asbestos- 
related diseases
our online resources
Silverdell communicates its 
financial performance as well as 
providing additional information 
about the Group on its website:  
www.silverdell.plc.uk
Silverdell’s Annual Report and 
Accounts are available to view 
online or to download from:  
www.silverdell.plc.uk/reports.asp
Other Silverdell Plc Group 
companies can be found at:  
www.silverdell.co.uk
www.kitsons.co.uk
www.redhills.co.uk
www.silverdellacademy.co.uk
Many of the statistics and facts concerning asbestos and mesothelioma have been sourced from the following: HSE (Health and Safety 
Executive) 2010, Mesothelioma deaths – the latest picture for Great Britain: Geographical analysis 1981-2005 and Occupational analysis 
2002-2005. http://www.hse.gov.uk/statistics/causdis/mesothelioma/factsheets.htm; World Health Organisation Fact Sheet No. 343 July 2010; 
HSE website – Asbestos-related disease statistics: frequently asked questions and answers – Updated August 2010; Action Mesothelioma Day 
2010 Campaign Guide – British Lung Foundation; TUC 14/2/2002; TUC Asbestos Advisory Information; the British Lung Foundation website.
Designed and produced by The College www.thecollege.uk.com 
 
Printing and paper: Printed by Jones and Palmer using inks formulated from sustainable raw materials. The paper is Revive Pure White Silk  
a recycled paper produced using 100% recycled waste. The pulp is bleached using a Totally Chlorine Free (TCF) process at a mill that has  
been awarded the ISO140001 certificate for environmental management.
 
If you have finished reading the Annual Report and no longer wish to retain it, please pass it on to other interested readers, return it to  
Silverdell Plc or dispose of it in your recycled paper waste. Thank you.
8981_Silverdell_AR10_Cov_TP 2.indd   2 10/12/10   10:32:35  Pro t e ct i n g l i v e s
creating value
Silverdell Plc Annual report and accounts 2010 silverdell Plc
14 Buckingham Street
London WC2N 6DF
www.silverdell.plc.uk
Silverdell Plc Annual report and accounts 2010
8981_Silverdell_AR10_Cov_TP 2.indd   1 10/12/10   10:32:35