1 
 
 
 
 
 
Company Registration No. 5755897 
Silverdell Plc 
Annual Report and Financial Statements 
30 September 2011  
 
  Silverdell Plc 
 
 
Contents 
 
2 
 
  
Highlights 4 
Group Financial Highlights 4 
Chairman's Statement 5 
Our Business 7 
Chief Executive’s Statement 11 
Case Studies 18 
Financial review 22 
Key risks and mitigations 23 
Directors and Senior Management 25 
Advisers 26 
Directors’ report 27 
Corporate governance and risk management 32 
Independent auditor's report  33 
Consolidated income statement 34 
Consolidated statement of comprehensive income 35 
Consolidated balance sheet 36 
Consolidated statement of changes in equity 37 
Consolidated statement of cash flows 38 
Notes to the consolidated financial statements 39 
 
Company balance sheet 70 
Company notes to the financial statements 71  Silverdell Plc  
 
 
3 
 
 
 
OVERVIEW 
 
Silverdell Plc works with major organisations both in the UK 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 strategy, ‘Protecting Lives, Creating Value’, continues to take the business through its next stage of development 
as the market leader in its field. 
 
The Group provides managed solutions in highly regulated, high-hazard environments. The Group’s collaborative 
approach supports remediation and refurbishment projects, and serves ongoing maintenance contract requirements for 
access and regulatory compliance. 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 public sector, defence, nuclear, transport, 
utilities, construction, 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. 
 
Silverdell is committed to creating an improved and protected environment in which to live and work. This 
commitment is the basis of our corporate vision: To Protect Life. 
 
  Silverdell Plc  
 
 
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HIGHLIGHTS 
 
 Order book up 73% to £107m at 31 October 2011 (31 October 2010: £62m) 
 Magnox 10 year framework won in October 2011 
 National Grid 3 year framework won 
 Gross profit margin up 1.5 ppts at 27.4% (2010: 25.9%) 
 EBITDA* up 5% at £4.1m (2010: £3.9m) 
 Adjusted pre-tax profit** up 15% at £3.0m (2010: £2.6m) 
 Statutory profit before tax of £2.5m (2010: £1.8m) 
 Adjusted EPS** up 56% at 1.4p (2010: 0.9p) 
 Fully diluted EPS up 100% at 1.0p (2010: 0.5p) 
 Gearing slightly lower at 22% (2010: 23%) 
 A H Allen and RDS successfully acquired and integrating on track 
 
 
* Earnings before interest, tax, depreciation and amortisation and also before goodwill impairment, share-based payments and non-recurring 
items. 
 
** Before non-recurring items, impairments, amortisation and share-based payments 
 
 
GROUP FINANCIAL HIGHLIGHTS 
 
 
    
2011 
£m 
2010 
£m 
Continuing operations:      
Turnover    59.7 56.7 
Operating profit    3.0 2.5 
      
Adjusted operating profit*    3.6 3.2 
Adjusted operating margin *    6.0% 5.6% 
      
 
     
Earnings per Share    Pence pence 
Adjusted basic*    1.4 0.9 
      
Basic    1.1 0.5 
Diluted    1.0 0.5 
      
 
 
 
*   Before non-recurring items, impairments, amortisation and share based payments. 
  Silverdell Plc  
 
 
5 
 
 
 
CHAIRMAN’S STATEMENT 
Overview 
I am pleased to report encouraging results for the year ended 30 September 2011, especially considering the adverse 
weather earlier in the year and indeed the apprehension surrounding the Government’s expenditure programmes. The 
Group continues to prove its resilience to fluctuating market conditions by maintaining its focus in the regulated 
environment where legislation is a key driver. 
We have successfully achieved our objectives in the year in terms of organic growth and in terms of acquisitions 
achieving market expectations on margin and turnover. Both of the acquisitions, A H Allen and RDS, are being 
successfully integrated into the Consulting business and are already producing positive results. The Group 
successfully raised £2.3m in a share placing during the year, predominantly to fund these acquisitions. 
 
Strategy 
This is the second year of the ‘Protecting Lives, Creating Value’ strategy which aims to deliver shareholder value by 
broadening our service offer and sustaining high quality, repeatable revenues from large, blue-chip customers in the 
regulated and high-hazard service sectors. The Group’s customer base now consists predominantly of large private 
and public sector organisations which place a high value on protecting the health of their customers, staff and 
reputation. While conditions in the wider economy are expected to remain difficult, your Board believes that the 
increasingly stringent regulation surrounding hazardous waste management will require customers to continue to 
prioritise non-discretionary expenditure on facilities maintenance and regulatory compliance. 
Our ambition is to grow revenues to more than £100m per year within two years. It is management’s view that, whilst 
this could possibly be achieved organically, it is most likely to come about through acquisitions and the Board is 
actively exploring some options. Silverdell will only consider acquisitions which meet strict criteria: they will be 
limited to organisations providing services which complement our Group’s current service offer to highly regulated 
industrial sectors such as nuclear, oil, gas and energy, as well as niche bolt-on consulting businesses, and must be 
earnings enhancing within the first year. 
Silverdell has developed into a stable and resilient business. In recognition of this fact, and as a mark of our 
confidence in the future of the Group, we carried out a capital reduction exercise during the year, which enables a 
dividend to be paid for the first time. The Board has determined that it will have a cautious but progressive dividend 
policy and it is our intention to pay our maiden dividend during 2012. 
 
Results 
Revenues for the year ended 30 September 2011 were £59.7m (2010: £56.7m) with adjusted EBITDA* of £4.1m 
(2010: £3.9m) and adjusted pre-tax profit** of £3.0m (2010: £2.5m). The order book at 31 October 2011 remains 
strong at £107m (2010: £62m at 31 October 2010), with £36m secured for 2012. At the year end, the Company’s net 
debt was £5.3m (2010:£4.3m) as the Group required additional capital to support its growth, particularly during the 
second half of the year. 
 
 
Board & People 
We now have a dynamic, cohesive and committed management team, led by our CEO Sean Nutley, who have worked 
extremely hard over the last two years in revitalising the group and ensuring strong ties across each of the three 
principal divisions, whilst maintaining their individual accountability and strict control disciplines. I believe we are 
now in a strong position to take the group forward to its next stage of development. 
In June Matt Griggs took over as MD of the Consulting business Redhills and is successfully overseeing the 
integration of the two new acquisitions. In November 2011, John Potts joined the Group from Hertel to lead our 
industrial services division.  Silverdell Plc  
 
 
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CHAIRMAN’S STATEMENT (CONTINUED) 
 
Board & People (continued) 
We remain a direct employer of our workforce such that their inherent skills are maintained and developed in the 
business providing an excellent basis for the training and development of future management, coupled with the ease 
with which we maintain our licences to operate.  
On behalf of the Board, I would like to express our gratitude and thank the management team and everyone in the 
Group for their hard work, dedication and commitment to our strategy. During during the past year, we have 
continued to deliver a good set of results despite the challenging economic climate around us.  
 
Summary 
Silverdell performed robustly in the year ended 30 September 2011. The Group has delivered significant growth, both 
organically and by acquisition during the year, and particularly during the last six months. We believe that we now 
have a stable, dynamic and flexible business which is very well positioned to deliver further growth and value to our 
shareholders as well as giving us confidence in our ability to pay a dividend during 2012.  
 
Stuart Doughty 
Non-Executive Chairman 
 
 
*Earnings before interest, tax, depreciation and amortisation and also before goodwill impairment, share-based 
payments and non-recurring items 
** Adjusted to exclude intangibles amortisation, impairment charges, non-recurring items and share-based payments Silverdell Plc  
 
 
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OUR BUSINESS 
 
 
GROUP STRUCTURE 
 
 Silverdell PLC            Remediation     Consulting 
 
 Remediation               Silverdell          Kitsons  
 
 Consulting             Redhills            SAFE Training 
 
OUR SOLUTIONS 
 
The solutions we provide are grouped in three strands 
 
Environmental 
 
 Asbestos surveying, management and removal 
 Land remediation and demolition 
 Removal of lead and other hazardous contaminants 
 Preconstruction and enabling works 
 Environmental Consulting - land, carbon and energy management 
 
Industrial 
 
 Scaffolding and access systems 
 Thermal insulation - tanks and lagging 
 Specialist coatings 
 Painting and general contracting 
 
Regulatory compliance 
 
 Asbestos and legionella testing and compliance 
 Regulatory training for the built environment 
 Waste management solutions 
 
 
OUR STRATEGY 
 
The business strategy Protecting Lives, Creating Value is designed to take the Group forward and, at the same time, 
provide greater resilience in challenging economic times. It comprises four commitments we make to our customers, 
employees, shareholders and stakeholder partners: 
• Protecting lives - removing hazardous waste materials before any long-term damage is done and eliminating the 
risk of further contamination 
• Creating value - for customers by restoring the value of their assets; for shareholders through a combination of 
organic and acquisitive growth 
• Duty of care - protecting the reputation of our customers by employing the best people and finishing the job to 
the highest possible standard 
• Legal compliance - in a highly regulated industry, to be open, transparent and auditable in everything we do 
 
 
  Silverdell Plc  
 
 
8 
 
OUR BUSINESS (CONTINUED) 
 
OUR STRATEGY (CONTINUED) 
 
It is a strategy formed from our vision - To Protect Life - and underpinned by our core values: 
• Caring about people, standards and the environment 
• Open to scrutiny, approachable and auditable 
• Positive, dynamic, energetic and creative in what we do 
 
Together our vision, values and strategy drive everything we do.  
OUR MARKETS 
We operate in the specialist asbestos support services and wider specialist hazardous infrastructure industrial support 
services sectors. We are the UK’s largest provider of specialist asbestos services and the skills, processes and 
reputation that we have developed in in this arena are equally applicable to other highly regulated, high-hazard 
materials. This focus, together with our other industrial capabilities, increasingly enables us to rival larger competitors 
in the specialist industrial services sector. 
We work for companies and organisations active across a broad spectrum of market segments 
Private sector  
Power Generation, Utilities and Industrial  
 nuclear decommissioning and dismantling, maintaining conventional power stations and supporting the installation 
of new sites;  
 supporting the facilities and transmission networks of customers across the electricity, gas and water sectors; 
maintaining oil and gas terminals;  
 maintaining and refurbishing manufacturing and process plant and facilities 
 
Construction 
 integrated enabling solutions in support of on-site teams 
 
Retail, Commercial and Rail  
 large and small-scale refurbishment of high street and office premises;  
 supporting the regeneration of stations and trackside maintenance 
 
Public sector 
Local Authorities and Housing 
 supporting local government facilities management teams and registered social landlords 
 
Healthcare  
 supporting NHS trusts through long-term framework arrangements 
  Silverdell Plc  
 
 
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OUR BUSINESS (CONTINUED) 
 
OUR MARKETS (CONTINUED) 
Further and Higher Education  
 maintaining the fabric of our schools, colleges and universities 
 
Defence 
 assisting the UK Ministry of Defence to maintain and improve its estate 
 
OUR BUSINESS - DRIVERS FOR SUCCESS 
 
Since 2009 our Group has transformed from being principally a specialist in the management and removal of asbestos 
to become a broad based environmental support services provider with operations focused on highly regulated, high-
hazard markets.  
 
We expanded the skills, capabilities and capacities we gained working with asbestos and applied them to similarly 
sensitive markets - nuclear, defence and energy. Today, we have migrated upstream to contend as a specialist 
contractor against competitors many times our size.  
 
Driving our success are: 
 
Our Business Focus and Organisational Structure 
 
Awareness of the risks posed by hazardous substances to environmental health have never been higher. The 
increasing requirements of public and workplace health and safety protection legislation, in the UK, Europe and 
worldwide, mean that expenditure on the management, control and remediation of such substances can no longer be 
considered discretionary. Prominent publicity is given to events in which hazardous materials have failed to be 
contained. 
 
Environmental hazards are a fact of life. Although the use of asbestos was banned in the UK in 1999 its legacy will 
continue until 2050. Fourteen million homes were built in the UK between 1945-99. Some 19,500 schools and 
500,000 UK workplaces are estimated to have high-hazard, regulated asbestos containing materials (ACMs) in their 
structures. 1.8m UK workers and tradespeople are estimated to be exposed to environmental asbestos every year. 
Annual deaths from asbestos related illnesses are predicted to peak at 5,000 in 2015.  
 
To counteract such hazards we have increased our range of capabilities and expanded our capacity to become a full 
service, single source supplier of premium complementary high hazard, regulated environmental support services - 
from on-site Consulting through to construction and remediation, serving customers throughout the private and public 
sectors. Our skills are transferable: sector to sector, market to market. Our geographic reach extends throughout the 
UK and our scale enables us to follow our customers internationally. 
 
 
Our People 
 
Our people are vital to our success. We recruit people who share our work ethic and values and who understand and 
are committed to the duty of care we owe our customers.  
 
 
 
  Silverdell Plc  
 
 
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OUR BUSINESS (CONTINUED) 
 
OUR BUSINESS - DRIVERS FOR SUCCESS 
 
Whatever their level of skill or experience on joining, we aim to help every one to reach their maximum potential and 
make a career with us. On joining, everyone undertakes a training needs assessment. Site staff progress through a 3-  
tiered - ‘bronze’, ‘silver’ and ‘gold’ standard - development programme, designed to increase the level of skills and 
competency and equip the individual to master tasks of different risk and complexity.  
 
 
Specialist training in working with hazardous materials, at height or in confined spaces is provided by our own 
academy, SAFE Training, and as needed by external providers. High potential individuals participate in a fast-track 
development programme in which exceptional people can progress from new operative to manager within four years. 
Operative, supervisor or manager, we provide a programme of continuing development designed to help them reach 
their full potential. 
 
By training our people to the highest standards, helping them to realise their potential, and providing them with 
satisfying careers and industry leading benefits we aim to retain the best workforce in our industry. 
 
 
Barriers To Entry 
 
We work in a highly regulated sector, where legislative barriers to entry are increasingly restrictive, and few can 
match our level of capability, expertise and experience. 
 
In addition, significant non-legislative barriers (such as necessary security clearances, insurance cover, accreditations 
and a proven track record, resources and capacity in such projects) act to restrict access to our markets. 
 
 
Legislation 
 
Increasingly stringent legislation, while restricting entry to our markets, is also acting to increase demand for our 
services. The introduction of a ‘Duty to Manage’ under the UK Control of Asbestos Regulations (CAR) in 2006 has 
increased demand for our Consulting services. The EU ruling in 2011 requiring the UK to implement the Asbestos 
Worker Protection Directive in full will necessitate many tradespeople receiving specialist training in working with 
asbestos. While a 2011 ruling of the UK Supreme Court will open the path to action against employers and building 
owners by mesothelioma victims and increase attention to asbestos management and remediation. 
 
 
Reputation and Credibility 
 
Legislation and media attention have increased market sensitivity to compliance and risk management, leading to a 
greater focus on health and safety issues and expenditure by business on corporate social responsibility programmes. 
 
With our specialist focus, track record of project delivery, and ability to engage and work with our customers to create 
long-term relationships we are well positioned to succeed. We are one of very few specialist environmental services 
businesses capable of putting the right people, with the right skills, in the right place, at the right time; and able to 
respond to the needs of those customers seeking the simplicity and certainty of a single source solution. 
  Silverdell Plc  
 
 
11 
 
CHIEF EXECUTIVE’S STATEMENT  
Overview 
A Strong Foundation For Profitable Growth 
Silverdell operates in two distinct markets in the UK: the general domestic refurbishment and construction related 
market and the larger industrial support services market predominantly involved in the petrochemical and nuclear 
sectors, both of which require a high degree of regulatory control. The skills, processes and, importantly, the culture 
that our operating teams have developed in providing asbestos services lend themselves to the handling and 
management of all hazardous materials in a safe and compliant manner, where incidents could have dramatic 
repercussions on the operating efficiency of clients’ establishments and damage to their reputations. To these 
customers we provide reassurance and peace of mind. 
The Group is the largest quoted specialist supplier of asbestos support services in the UK but, despite that, has only a 
small proportion of the wider industrial support services sector; this is where we believe the next step in our growth 
strategy to be. However, because of our proven and well-regarded track record of delivering services in hazardous 
conditions, we are a trusted and long-standing supplier to major companies in the nuclear, defence, petrochemical and 
energy sectors. We are now actively building on this position to create new opportunities for growth in these sectors, 
both in the UK and abroad. We believe that the successful implementation of this strategy will help fulfil our 
ambition to increase the critical mass of the business and secure annual turnover in excess of £100m. 
Strategic review 
Introduction 
We are in the second year of the strategy, building the Group up from the parlous financial state which existed in 
2009. The change in culture which has resulted from our pursuit of our “Protecting Lives, Creating Value” strategy is 
providing improved cohesion, better delivery of client services and positioning the Group well for further growth.  
Increasingly, our key customers are seeking to appoint partners that are capable of offering a single source solution to 
their service needs. In a highly regulated market, they are seeking to achieve long-term certainty and peace of mind 
by appointing reliable, proven supply chain partners, on a framework contract basis. We operate in markets where 
there are very high barriers to entry and which therefore favour long-established, reputable companies such as 
Silverdell Plc.  
Furthermore, we differentiate ourselves from our competitors by striving to provide a premium service across a 
spectrum of complementary services, from on-site Consulting through to remediation, serving all sectors and public 
and private customers. 
‘Protecting Lives, Creating Value’ is a four-pronged strategy that is designed to enable our Group to consolidate   its 
position as the UK’s leading provider of specialist environmental support services and take a larger share of the UK 
industrial support services market but with the capacity to follow our customers overseas or pursue opportunities in 
potentially attractive territories worldwide, where similar legislation is in place. 
Objectives 
For the year ahead, we plan to further strengthen the Silverdell Group and create shareholder value through: 
 Clearly demonstrating our position as a leading provider of  services in high-hazard regulated environments 
through our competence and track record; to customers, suppliers, employees and investors in order to 
differentiate ourselves from the competition and make Silverdell their services partner of choice 
 Developing our product and geographic capability through new service offerings through acquisition and by 
organic growth 
 
 Improving existing client relationships by offering bundled services with unmatched quality 
 
 Continuing to improve systems, cost efficiencies and cash management across the Group. 
 
 
  Silverdell Plc  
 
 
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CHIEF EXECUTIVE’S STATEMENT (CONTINUED) 
 
Objectives (continued) 
In order to achieve this we continue our strategic approach to drive improving performance through: 
 
 Further development of our capabilities in regulated environmental and compliance markets other than 
asbestos management 
 Development of our position in the industrial and power generation markets through securing longer-term      
framework contracts 
 Development of our existing customer relationships to generate new business in areas such as specialist 
scaffolding, insulation and specialist coatings, training, consulting and compliance.  
 Increasing our capability in hazardous materials consulting. 
 
Back in June 2010, our 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 
 To grow the Consulting business to 15% of Group revenues 
 
I am pleased to report that we are making considerable progress in most of these areas. In particular, recent months 
have seen our order book increase by over 70% against last year while revenues are 6% higher year-on-year. EBITDA 
margins year on year continue to improve, although the step to 10% will require a step change in our volumes to 
reduce the dilutive effect of our fixed overhead. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Silverdell Plc  
 
 
13 
 
 
CHIEF EXECUTIVE’S STATEMENT (CONTINUED) 
 
What we said What we’ve done The future 
Grow our order book ahead of organic 
revenue growth  
Achieved. Order book has risen 73% 
to £107m (2010: £62m) 
Continue focus on winning high 
margin Consulting and high value 
framework contracts, increasing our 
penetration of the wider Industrial 
Support Services market  
Drive revenue growth year on year 
ahead of market growth 
Achieved. Group turnover increased 
by 5% to £59.7m (2010: £56.7m) 
Accelerate revenue growth to meet 
ambition of £100m within two years 
through organic growth, acquisition 
and international expansion 
Grow the EBITDA* margin to 10% Progress. While EBITDA* increased 
5% to £4.1m (2010: £3.9m) the 
margin remains at 7%  
Continue to focus on order book and 
revenue growth while bearing down on 
costs and seeking cost synergies 
throughout the business 
Maintain working capital at not more 
than one month’s revenue 
This has been challenged by the 
growth that has been experienced. As 
a direct labour employer, anything 
above modest growth requires 
additional working capital. 
We will strive to optimise cash through 
improving terms wherever possible. 
Grow the Consulting business to 15% 
of Group revenues 
Achieved. Consulting now accounts 
for 18% of revenues on a running rate 
basis 
Continue the assimilation of AH Allen 
and RDS into the business and pursuit 
of framework opportunities 
 
*Earnings Before Interest, Tax, Depreciation and Amortisation and also before non-recurring costs and share-based payments 
 
Most importantly, Silverdell is a very different Group today than it was two years ago. Then, despite having excellent 
site operations, the Group had considerable debt and profits were at an all-time low. Despite extremely difficult 
market conditions, the Group has been strengthened financially and operationally, renegotiating its facilities and 
securing more funds from the market, completely restructuring its senior management team and driving cultural and 
financial disciplines into the three core divisions whilst ensuring cooperation and cohesion with no loss of 
accountability.  
Two years on, the decisive management actions we have taken have transformed Silverdell into a robust, growing 
business, with stable and flexible financing.  
We have done all this while maintaining our best-in-class operational reputation. Our credibility is now such that we 
increasingly find ourselves competing on a ‘Tier 1’ basis for contracts, in which we contract directly with the end 
customer, where before we might only have been considered as a sub-contractor. 
The successful £2.3m fundraising we undertook in August to fund the acquisition of RDS is testimony to our 
transformation.  
 
 
  Silverdell Plc  
 
 
14 
 
CHIEF EXECUTIVE’S STATEMENT (CONTINUED) 
 
Acquisitions 
During the year we completed two acquisitions to strengthen our Environmental Consulting offering and, having 
completed the acquisitions, the key to success has been the smooth integration of the businesses into the Group. In 
April we purchased A H Allen Limited (“A H Allen”), based in the North East. The integration plan is going well and 
is on plan. At the end of August 2011 we purchased RDS Asbestos Management Consultants [UK] Limited (“RDS”) 
which will strengthen our presence in the retail sector.  The management teams are working together to ensure its 
smooth integration.  
Both AH Allen and RDS bring additional capacity and considerable expertise to the Group’s Consulting offering. 
Our Consulting team is now over 180 strong, compared to around 100 this time last year, and so we expect both 
acquisitions to be earnings accretive with immediate effect.  
 
Summary and Outlook 
Our “Protecting Lives, Creating Value” strategy has effectively prepared our Group for the next stage of growth. The 
Board is currently developing the plan for the next phase of our Group’s development, which will be unveiled within 
the next six months.  
The last two years has seen the Group recover from a low point to build a stable foundation for growth and start to 
deliver that growth through some significant business wins. The next phase of growth will see the Group increase in 
reputation, revenues and profits to become an established and high quality provider of hazardous industrial services 
with a truly international capability. 
 
Operational Review 
 
  Remediation  Consulting 
  2011  2010  2011  2010 
Public Sector      
 Local Authorities & Housing 12%  11%  14%  20% 
 Defence 21%  17%  9%  11% 
 Health & Education 11%  11%  15%  21% 
  44%  39%  38%  52% 
         
Private Sector        
 Utilities, Power & Industrial 27%  28%  18%  10% 
 Construction 8%  15%  1%  5% 
 Retail, Commercial & Rail 21%  18%  43%  33% 
  56%  61%  62%  48% 
  100%  100%  100%  100% 
 
In 2011 external Remediation revenues rose by 2% to £51.5 m (2010: £50.5m). The revenue base is now increasingly 
made up of long-term framework contracts with resilient repeatable revenues. In particular, in 2010 Remediation 
benefitted from a £3.5m fixed price contract, the loss of which has been more than compensated for by repeatable  
 
 
  Silverdell Plc  
 
 
15 
 
CHIEF EXECUTIVE’S STATEMENT (CONTINUED) 
 
Operational Review (continued) 
revenues in 2011. Operating margins in this segment were 6.9% in 2011, up from 6.2% in 2010, driven by operating 
cost efficiencies. 
Consulting has had a strong year, boosted in the second half by two acquisitions which have improved both our 
capability and capacity. External Consulting revenues rose by 32% to £8.2m (2010: £6.2m), nearly all of which is 
generated through framework contracts. Profitability also improved as a result of better overhead efficiency, with the 
operating profit* margin increasing by 0.9 ppts to 15.3% (2010: 14.4%). The acquisitions will drive further 
improvements in revenue and profitability in 2012. 
* Excluding amortisation, share-based payments and non-recurring items. 
 
Public Sector 
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 £20bn per year and this is driven by regulatory 
requirements.  
Notwithstanding the Coalition Government’s Comprehensive Spending Review in October 2010 and the associated 
freezes or reductions in a number of capital projects, Silverdell has seen public sector revenues rise by 13% during the 
year. The share of total remediation revenues generated by public sector work increased to 44% in 2011 (2010: 39%) 
whilst the share of consulting revenues was 38% (2010: 52%).  
Underlying public sector revenues in Consulting were flat year on year, with the principal elements of organic and 
acquisition growth in Consulting delivering revenues predominantly in the private sectors.    
 
Local Authority and Housing  
2011 has been another year of success in winning local authority and housing framework contracts with the share of 
total Remediation revenues rising to 12% (2010:11%). Towards the end of the year we won a contract to survey and 
remediate 30,000 homes over three years working for a consortium of Registered Social Landlords.  
We continued to win new contracts with social landlords, such as Peabody, as well as several local housing 
authorities. However, with more significant revenue growth in other areas, local authority revenues fell to 14% of our 
total Consulting revenues (2010: 21%).  
Health and Education 
Health and Education comprised 11% (2010: 11%) of our Remediation revenues. Particular success has been 
achieved in working with a major NHS Trust in South Wales. The strength of this relationship, driven by our 
understanding of the customer’s needs, has opened the door to further opportunities with NHS Trusts elsewhere in 
Wales. We are also the incumbent asbestos services provider for a number of Russell Group universities which have 
diverse property portfolios across a wide regional spread. 
Health and Education work made up 15% of Consulting revenues (2010: 21%), with notable work wins with a 
number of Russell Group universities providing survey and management services across their entire university 
estates. 
 
Defence 
The Defence share of revenues for Remediation was 21% (2010:17%). During 2011 we developed excellent 
relationships with the Atomic Weapons Establishment which has seen our work with this customer increase threefold 
in less than two years. Our work with AWE has developed well beyond our traditional asbestos offering and we now 
offer a number of additional services. We have also extended the Regional Prime Contracts relationship for a further 
six years, which is a fantastic success for the Group.  Silverdell Plc  
 
 
16 
 
CHIEF EXECUTIVE’S STATEMENT (CONTINUED) 
 
Operational Review (continued) 
Consulting defence revenues represented 9% (2010: 11%) of the total, although this represents a slight increase in 
absolute terms. A significant defence customer during the year has been AWE with whom we have successfully 
developed new Consulting opportunities out of the long-standing relationship with the customer. 
 
Private Sector 
Power Generation, Utilities and Industrial 
Power Generation, Utilities and Industrial customers totalled 27% of Remediation segment revenues in 2011 (2010: 
29%). We have leveraged our strong relationship with Magnox to win a share of a £304m framework contract for 
asbestos removal, deplanting and decommissioning at their first generation nuclear power stations, which will serve 
to replace current work at the Chapelcross site as it scales down in 2013.  
In addition to the Magnox framework contract win, we have won a nationwide scaffolding framework contract with 
National Grid which will provide the basis for increased penetration in this attractive sector. We have also completed 
thermal insulation works on a major new-build power station in South Wales during the year and, whilst the final 
account is still under negotiation, management remains confident of a successful outcome. In our Consulting 
business, Power Generation, Utilities and Industrial customers rose to 18% (2010:10%) of total revenues. We 
acquired A H Allen in April 2011 which has a long-standing framework contract with a large water utility in the 
North East. More importantly, however, we have won a significant amount of new business from Remediation 
customers in this sector, such as National Grid and Magnox. 
Construction 
Construction’s share of total Remediation revenues fell in 2011 to 7% (2010:15%). Hard hit by the economic 
downturn, there has been an absence of property development opportunities, especially outside London and the South 
East. The outlook for the Construction sector remains poor, with industry forecasts anticipating no upturn before 
2014.   
Consulting’s construction share of total revenues also fell to 1% (2010: 5%). 
Retail, Commercial and Rail 
This segment comprised 21% (2010:18%) of Remediation revenues and 43% of Consulting revenues (2010: 33%).  
As anticipated, we have seen a number of retail refurbishment projects being undertaken this year and we have 
worked for a number of major high street brands as they have sought to refresh their stores after a two-year period of 
underinvestment. During the year we also won a national framework with Crawfords, a leading loss adjuster, to 
provide insurance-related remediation works and this relationship is responsible for the majority of the increase in this 
work. We operate a nationwide network that offers a 24/7 emergency call-out to both residential and commercial 
properties and combine this responsiveness with a high quality service under a demanding service level agreement.  
During the year we completed works under a Crossrail contract in Central London, with this client also providing 
work for the Consulting division. 
The bulk of the Consulting work in this segment is the provision of survey and management services to a nationwide 
broadcaster. We continue to provide Consulting 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. The acquisition of RDS will increase activity in this segment in the future, thanks to its particular focus on the 
retail high street, pubs and clubs. 
 
 
 
 
  Silverdell Plc  
 
 
17 
 
CHIEF EXECUTIVE’S STATEMENT (CONTINUED) 
 
 
During the past two years Silverdell Plc has been successfully refocused and stabilised; we are now standing on a 
strong platform and are poised for future growth.  
I am very encouraged by recent progress made, winning significant new business, while making two successful 
acquisitions and we look forward to the future with confidence. 
Sean Nutley 
Chief Executive  Silverdell Plc  
 
 
18 
 
 
 
CASE STUDIES 
 
PEABODY  
MAKING LONDON A CITY OF OPPORTUNITY FOR ALL 
Project - Asbestos risk management and enabling works 
People - Providing peace of mind to a diverse community 
Business - Working in partnership 
Founded in 1862 by American banker, diplomat and philanthropist, George Peabody, the Peabody Group is London’s 
longest standing affordable housing provider and social entrepreneur. Its mission is to make London a city of 
opportunity for all by ensuring that as many people as possible have a good home, a real sense of purpose and a 
strong feeling of belonging.   
 
Peabody defines “a good home” as "a place that is safe, warm, clean, light, well maintained and evokes personal 
pride". With safety first on their list of priorities and a portfolio of more than 20,000 properties owned and managed 
across the capital, for Peabody the assessment and control of any risk to health that might be posed to their 50,000 
residents through exposure to asbestos is paramount. 
 
Peabody’s relationship with Silverdell PLC’s consulting division, Redhills, began in 2007. Specialist in asbestos risk 
management, Redhills was appointed to assist Peabody ensure its compliance with the recently introduced ‘Duty to 
Manage‘ legislation that arose from the implementation of Regulation 4 of the Control of Asbestos Regulations 2006. 
 
Redhills first task was to undertake an extensive programme of asbestos surveys which enabled Peabody to formulate 
its corporate asbestos management plan and create an accurate register of asbestos risk. The asbestos management 
plan details the strategy and processes Peabody uses to safeguard its residents, contractors and those in the wider 
community from risk of exposure to airborne asbestos fibres originating from its properties. The asbestos register 
details the location and nature of current materials, which are reinspected annually and updated to record any asbestos 
abatement works that have been undertaken.     
 
In 2009, recognising the specific challenges arising from meeting the diverse needs of Peabody’s residents - their 
languages and cultures, the elderly and infirm, individuals at high risk, those with disabilities and young families - 
Redhills established a specialist housing team. 
  
Commenting on the benefits that Redhills’ housing team have brought to the relationship, Gary Jacobs, Building 
Services Asbestos Coordinator at Peabody said:  
 
“Having worked with Redhills for over three years, I have been consistently pleased by their honesty, integrity and 
professional approach.   
 
“Redhills distinct advantage over other consultants is their dedicated and highly motivated housing team that 
understands the issues and problems faced by a social landlord and its tenants.  Their ability to meet our exacting 
KPI’s [key performance indicators] on a regular basis is testament to their customer focus.   
 
“The word ‘partnering’ is often banded about but rarely understood.  For me, the relationship between Peabody and 
Redhills is what partnering is all about – an open and honest working relationship, where trust is engendered in both 
parties.” 
 
Matt Griggs, Managing Director of Redhills, added: 
“Our specialist housing team is a practical example of how customer focus can bring real dividends to a relationship. 
Care is no soft virtue, it’s a pragmatic means to deliver customer value.” 
  Silverdell Plc  
 
 
19 
 
 
CASE STUDIES (CONTINUED) 
 
Since forming its specialist housing team, Redhills’ working partnership with Peabody has developed to the extent 
that it now acts as a key consultant and stakeholder in all facets of Peabody’s asbestos risk management.   
 
 
DELIVERING SAFETY AND EFFICIENCY IN NUCLEAR DECOMMISSIONING 
 
Project: Removing asbestos containing materials from first-generation nuclear reactor sites  
 
People: Ensuring peace of mind and a clean environment 
 
Business: Asbestos remediation, thermal insulation and scaffolding access  
 
 
Kitsons’ relationship with the UK nuclear power industry began more than 20 years ago when we worked on the 
decommissioning of the Berkeley reactor site, on behalf of Nuclear Electric (formerly CEGB).  
 
Further asbestos removal contracts followed in the decommissioning of the ‘first generation’ reactors at Trawsfynydd, 
Sizewell, Bradwell and Hinkley Point A. In 2007, Kitsons was awarded the contract to remove 3,300 tons of asbestos 
containing materials (ACMs) from the Chapelcross reactor site by Magnox Limited, the site licensing company of the 
UK’s Nuclear Decommissioning Agency (NDA). 
 
The Chapelcross contract was, at the time, the largest single asbestos removal project ever awarded in Europe. It 
differed from those that preceded it by being the first to be operated on an ‘open book, target cost‘ basis, in which the 
Kitsons and Magnox site teams became fully integrated to jointly plan and schedule the works in the delivery 
programme. The objective of this transparent collaborative approach was to maximise efficiencies in the project 
programme and deliver real cost savings to the NDA and the UK taxpayer.  
 
The Chapelcross project involved two phases that commenced with the design, mechanical strengthening and erection 
of scaffold structures wrapped in a proprietary sheeting to completely contain the heat exchangers and provide a 
weather barrier. This was followed by the removal and disposal of the asbestos containing and asbestos free thermal 
insulation present in the heat exchangers, gas ducts, pump houses, pipework, condensers and turbines on the site.  
 
Kitsons, working directly for Magnox, in compliance with the UK Health and Safety Legislation in two of the most 
highly regulated sectors of Nuclear and Asbestos: creates safe containment structures around the areas to be stripped, 
and then completes the bulk strip and fine clean of the site before conducting the safe disposal of the removed 
materials. The project utilises Kitsons asbestos removal, thermal insulation and scaffolding capabilities. 
 
Commenced in 2007, the Chapelcross project is on course for completion in 2012. Such has been the success of the 
‘open book, target cost’ approach that it has been instrumental in Kitsons winning, in a joint venture with its 
demolition and de-planting partner EDS, a share of a further £304m framework agreement with Magnox. The 10-year 
agreement covers the removal of remaining ACMs from the ten first generation nuclear reactor sites operated by 
Magnox. 
 
Commenting on the value of the ‘open book’ approach and the benefits of framework agreements, Andy Watson, 
Kitsons' Managing Director said: 
 
“Openness is a value shared throughout the Silverdell Group. It helps us to develop trusted, enduring relationships 
with our customers, as we have here with Magnox. The collaboration that results generates a productive approach to 
joint planning and problem solving that ensures that project delivery is optimised”.  
 
 
  Silverdell Plc  
 
 
20 
 
CASE STUDIES (CONTINUED) 
 “From our customers’ standpoint this drives efficiencies, avoids unnecessary delay and releases real cost savings in 
the project delivery. Framework agreements allow customers such as Magnox to retain the learning with a buy once 
and use again approach: certain of the capabilities and skills of their service partners; benefiting from the supply 
chain and process improvements they have created with them over time.” 
 
ENSURING THE SAFETY OF PEOPLE AT HEATHROW AIRPORT 
 
Project: The Old Control Tower, London Heathrow Airport 
 
People: The Passengers, Airport Workers and Public At The World’s Busiest International Airport 
 
Business: Asbestos Removal and Remediation 
 
BAA’s London Heathrow is one of the busiest airports in the world, with more than 186,000 passengers passing through it every 
day, and a place of work for some 76,000 people. As capacity demands have grown BAA has sought to expand the airport’s 
facilities but with finite space available the operator is pressed to redevelop old facilities along with creating new. 
 
In April 2007, in anticipation of the opening of the new Terminal 5 and the changing demands of the airport, BAA moved the air 
traffic control facilities that oversee up to 480,000 aircraft movements a year to a new tower. Immediately, BAA set about 
redeveloping the 50-year old former control tower and office complex sited in the heart of the airport’s busy central area.  
 
Silverdell UK first became involved in the works in 2011 when appointed by BAA’s main contractor, Mansell Construction 
Services, to undertake a small project to remove various known non-notifiable and notifiable asbestos bearing materials from three 
floors of the south and west wings of the old control tower buildings. 
 
During the programmed asbestos removal works in the south wing Silverdell discovered additional, previously unidentified 
asbestos materials that required immediate action. BAA has a firm ‘sustainability commitment’ to ensure that Heathrow is “a safe, 
healthy and secure airport for staff and passengers” and when notified of Silverdell’s discoveries the BAA project team, Mansell 
and Silverdell immediately set about developing a swift and safe plan of action to reduce their effect on the ensuing demolition 
works.       
  
Together with Mansell and BAA’s asbestos consultants, WSP, Silverdell first undertook a full visual survey of the south wing to 
identify areas of concern and then assisted WSP to complete a full demolition survey without disturbance to the asbestos. The 
surveys complete, Mansell with Silverdells assistance led the project to isolate the electrical and mechanical connections needed to 
enable the safe completion of the planned asbestos removal and demolition works. 
 
With the site prepared, Silverdell was then contracted to remove and dispose of the asbestos-bearing materials identified in the 
WSP survey. The project required 1,300 man days to complete and resulted in the removal of 1,200m
3
 of asbestos bearing 
materials from the site in 33 waste containers - delivered and collected at night to conform to airport regulations concerning 
hazardous waste movements. 
 
Given the sensitive location of the project site and its proximity to the airport central area’s public transport hub, the works were 
subject to rigorous health and safety audit on 25 occasions in the course of their completion. Silverdell’s project management and 
site personnel were consistently commended by the Mansell and BAA audit teams for the excellence with which the site, 
workforce and waste product removal were managed - the completed works being assessed as to amongst the highest standards yet 
experienced at the airport. 
 
Silverdell UK has subsequently been approached by BAA’s ‘major projects’ team to assist where possible in the planning and 
programming of the remaining works to the west wing and old control tower building. 
 
 
“Silverdell is as assertive of site health and safety as we are in Mansell. We set demanding standards for our projects and 
Silverdell met them impeccably at every stage.  
 
 “On all of our many site visits, we found Silverdell’s work zones to be very well organised and all credit must be given to the 
professional commitment and safety culture shown by everyone in their team - supervisors and operatives, alike. 
 
“As the project progressed so our confidence and that of our BAA client grew. We have chosen to recognise Silverdell’s 
contribution to the Heathrow Old Control Tower project by making them our ‘Supplier Of The Month’ for September 2011.” 
 
 
  Silverdell Plc  
 
 
21 
 
CASE STUDIES (CONTINUED) 
 
 
Chris Gordon 
Senior Project Manager 
Mansell Construction Services Ltd 
 
 
“Responsiveness, innovation, and flexibility combined with application, control and a committed execution are all qualities that 
the Silverdell team were proud to have been able to demonstrate on the Heathrow Old Control Tower project. 
 
“As a result we have built trusted relationships with both our BAA customer and their main contractor on the project, Mansell 
Construction, which have opened the door to further opportunities at the airport.  
 
“We will use this success as the spur to further improve what we do.” 
 
Wayne Farmer 
Regional Director 
Silverdell UK 
 
 
 
 
 
 
 
 
 
 
  Silverdell Plc  
 
 
22 
 
FINANCIAL REVIEW 
Group turnover increased by 5% to £59.7m (2010: £56.7m) on the back of a particularly strong second half where we 
recorded £31.8m of revenue (2010: £28.8m in H2) as we won a number of new and significant framework contracts, 
particularly in Consulting. The revenue from our acquisitions in the year was £0.9m (2010: £nil). Gross profit was 
increased to £16.3m (2010:£14.7m) and the gross margin percentage therefore increased by 1.5 percentage points 
(ppts) to 27.4% (2010: 25.9%). The main driver of this improvement was the business mix changing during the year 
with Consulting revenues now comprising 14% of the Group revenues (2010: 11%), where Consulting gross margins 
are more than double the gross margins earned by the Remediation segment. Subject to any further changes in the 
composition of the Group, this accretive impact on margin will continue through 2012 as the full year impact of the 
two acquisitions takes effect. 
Administration costs increased to £13.0m (2010:£11.6m). At the beginning of the year we introduced a number of 
employment benefits to all our salaried staff, including a money purchase pension scheme on an opt-out basis which 
has been introduced ahead of the government’s proposed deadline. This will help us to continue to attract and retain 
the best people. We have also invested in management training and development during the year and this has 
delivered improvements in our business win ratio in each of our brands. Operating profit* increased by £0.4m to 
£3.6m (2010: £3.2m).  
As a result of the two acquisitions, related integration costs and the capital reduction exercise, we incurred an 
additional £0.3m of non-recurring costs in the year (2010:£nil). 
Finance charges were £0.5m (2010:£0.7m). Profit before tax* improved by 15% to £3.0m (2010: £2.6m). Statutory 
profit before tax improved by 39% to £2.5m (2010: £1.8m).The tax charge for the year was £0.8m (2010: £1.1m). 
The effective corporation tax rate is 32% (2010:60%). Profit after tax* was £2.1m (2010: £1.5m) and adjusted 
earnings per share* was up 56% on last year at 1.4 pence (2010: 0.9 pence). Statutory profit after tax was £1.7m 
(2010: £0.7m). The Directors intend to pay a maiden dividend in 2012.  
Net debt at 30 September 2011 was up by £1.0m at £5.3m (2010:£4.3m) with gearing at 22% (2010: 23%). Of this, 
the working capital outflow amounted to £3.6m (2010: £2.0m outflow). This arose as a result of the volume growth, 
particularly during Q4 2011, which resulted in trade receivables being £2.6m higher at 30 September 2011 than at the 
same point last year. We also have, included in receivables, amounts recoverable under contracts of more than £2m 
which we expect to recover during the first half of 2012. After the year-end, the Group’s revolving credit facility was 
extended by £1m to £3.5m. 
The order book is significantly higher than last year. The addition of £20m to the order book in respect of the Magnox 
10 year framework contract, as well as the impact of strong Q4 orders and acquisitions, brings the order book total up 
to £107m (2010:£62m) of which £36m (2010:£34m) relates to the new financial 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 2011, a 
liability was held on the balance sheet of £0.1m (2010:£0.1m) 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 pages 23 and 24 and Corporate Governance and Risk Management on 
page 32. 
We completed two acquisitions during the year, both in the second half. In April we purchased AH Allen Limited, a 
Consulting business based in the North East for around £0.9m (assuming achievement of stretch earn-out targets). At 
the end of August 2011 we raised £2.3m net of costs from a Share Placing of 23.5 million shares the proceeds of 
which went towards the purchase of RDS Asbestos Management Consultants [UK] Limited (“RDS”) for a maximum 
consideration of £2.3m (again, assuming achievement of stretch earn-out targets). This acquisition also included 
issuing 5.55 million shares to the vendors of RDS as part of the total consideration. As a result the number of issued, 
allotted and fully paid up shares increased to end the year at 180.8m (2010: 151.7m).  
Ian Johnson 
Chief Financial Officer 
 
* Adjusted to exclude intangibles amortisation, impairment charges, non-recurring items and share-based payments  Silverdell Plc  
 
 
23 
 
KEY RISKS AND MITIGATIONS 
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 above. We are members of all the recognised trade associations in the sectors 
we operate in and in particular, one of our senior executives is a past 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 independent legal advisors 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. 
Acquisition Effectiveness 
The Group’s strategy acknowledges that specific 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.  
  Silverdell Plc  
 
 
24 
 
KEY RISKS AND MITIGATIONS (CONTINUED) 
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 and 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 Consulting, 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. 
 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. 
  Silverdell Plc  
 
 
25 
 
DIRECTORS AND SENIOR MANAGEMENT 
 
DIRECTORS 
 
Stuart Doughty CMG, Non-Executive Chairman 
Stuart Doughty previously served as Chief Executive Officer of Costain Group Plc. He has over 40 years' experience 
in the construction industry. 
Stuart's past responsibilities include acting as Non-Executive Chairman of Alstec Group Limited, Beck & Pollitzer 
Limited and Somero Plc, and Kennedy Construction Group Limited, as well as Senior Non-Executive Director of 
Somero plc and Scott Wilson plc. 
Currently Stuart serves as Senior Non-Executive Director of Aigis Blast Protection Limited and Hurley, Palmer and 
Flatt Limited. 
 
Sean Nutley, Chief Executive Officer 
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 and is a Fellow of the Institute of 
Directors. 
 
Ian Johnson, 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 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 Watts, 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. 
 
SENIOR MANAGEMENT TEAM 
Andrew Watson, Managing Director, Kitsons 
Andrew's career with Kitsons spans 25 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. 
  Silverdell Plc  
 
 
26 
 
DIRECTORS AND SENIOR MANAGEMENT (CONTINUED) 
 
Dave Rhodes, Managing Director, Silverdell UK 
Dave has been involved in the asbestos industry for over 20 years since leaving school. He joined Silverdell UK in 
2000 as a Regional Manager and was promoted to Managing Director in 2009. 
Matthew Griggs, Managing Director, Redhills 
Matt first joined Redhills as a Senior Analyst in 1998. After a period working for external consultancies, he returned 
to Redhills as Operations Director in 2009. Matt’s contribution has been key to the planning and implementation of 
the Redhills growth strategy in the last year. He was appointed to Managing Director in 2011. 
 
ADVISERS 
 
Advisers   
Company Secretary 
Susan Fadil FCIS 
TMF Management (UK) Limited 
6 St Andrew Street 
London  
EC4A 3AE 
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 8BB 
NOMAD and Broker 
finnCap 
60 New Broad St 
London 
EC2M 1JJ  
 
Financial PR 
College Hill Associates Ltd 
The Registry 
Royal Mint Court 
London 
EC3N 4QN 
 
 
  Silverdell Plc 
 
 
Directors’ report  
 
27 
 
The Directors have pleasure in presenting their report and the audited financial statements for the year ended 
30 September 2011. 
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, all of which have 
been included in the consolidated accounts, are shown in Note 32. 
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 5 and 6 and 11 to 17 and are incorporated in this report by reference. 
Information about the use of financial instruments by the Group is given in Note 22 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 (2010: £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 (2010: 1p) ordinary shares required to be disclosed, were as follows: 
 
 
30 September 
2011 
Shares 
30 September 
2011 
Options 
30 September 
2010 
Shares 
30 September 
2010  
Options 
Stuart Doughty  150,000    1,633,333        125,000    1,633,333 
Mark Watts -                   -                   -                   - 
Sean Nutley 4,832,350    1,633,333     3,558,350    1,633,333 
Ian Johnson  222,500    1,333,333        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, Stuart Doughty retires at the forthcoming AGM and offers himself for re-election. 
 
 
 
 
 
 
 
   Silverdell Plc 
 
Directors’ report (continued) 
 
28 
 
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 2011: 
 
As at 
1 October 
2010 
Exercised 
in period 
Forfeited 
in  period 
 
Awarded 
in period 
As at 30 
September 
2011 
Exercise 
period 
from/to 
Exercise 
price 
        
 
   
 
 
  
Sean Nutley 333,333 - - - 333,333 2012-2019 9.0p 
 1,300,000 - - - 1,300,000 2012-2019 9.0p 
 
   
 
 
  
 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   
 
   
 
 
  
 4,599,999 - - - 4,599,999   
  
    
  
The market price of the Company’s shares as at 30 September 2011 was 10.9p (30 September 2010: 8.0p) and the 
range during the year was 6.5p to 13.8p (2010: 8.0p to 12.5p). 
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 should 
be weighted 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 a 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.   Silverdell Plc 
 
Directors’ report (continued) 
 
29 
 
 
Substantial interests in the share capital at October 2011 
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 41,779,545 23.1 
Paul Anthony Bell 29,025,000 16.0 
Fidelity Investments 15,726,700 8.7 
Octopus Investments 6,150,000 3.4 
   
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. The Group’s 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 (2010:£nil). During the year the Group made charitable 
donations of £31,000 (2010:£7,789). 
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 2011 was 69 days (2010: 45 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. 
   Silverdell Plc 
 
Directors’ report (continued) 
 
30 
 
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. 
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 judgments 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: 
 
 
   Silverdell Plc 
 
Directors’ report (continued) 
 
31 
 
 
 
 
Auditors (continued) 
 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, 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 
  
29 November 2011 
 
    Silverdell Plc 
 
 
Corporate governance and risk management 
 
32 
 
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 UK Corporate 
Governance Code (“The 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 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 page 25. 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 the 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 Key Performance Indicators, (“KPIs”), as outlined in the statement on Key 
Risks and Mitigations on pages 23 and 24. 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. 
 
 
    
 
33 
 
 Independent auditor’s report to the members of Silverdell Plc 
 
We have audited the financial statements of Silverdell Plc for the year ended 30 September 2011 as set out on pages 
34 to 74. 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 auditor’s report and for no other purpose. To the fullest extent 
permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's 
members, as a body, for our audit work, for this report, or for the opinions we have formed. 
 
Respective responsibilities of directors and auditor 
As explained more fully in the Directors' Responsibilities Statement set out on page 30, 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, and express an opinion on, 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 web-site at 
www.frc.org.uk/apb/scope/private.cfm. 
 
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 2011 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 8BB 
United Kingdom                 
 
 
29 November 2011  Silverdell Plc 
 
Consolidated income statement 
For the year ended 30 September 2011  
 
34 
 
 
 
  
Before 
non-recurring 
items and 
amortisation 
(see Note 10) 
 Non-
recurring 
items and 
amortisation 
(see Note 10)   
 Notes 
 
2011 
£’000 
2011  
£’000 
2011 
£’000 
2010 
£’000 
      
Continuing operations      
Revenue 5 59,696 - 59,696 56,674 
Cost of sales  (43,364) - (43,364) (41,974) 
 
 
    
Gross profit  16,332 - 16,332 14,700 
 
  
   
Administrative expenses  (13,028) - (13,028) (11,595) 
- amortisation of intangible assets  - (30) (30) (601) 
- non-recurring expenses  - (298) (298) - 
 
 
    
Operating profit  6 3,304 (328) 2,976 2,504 
Finance costs 8 (514) - (514) (672) 
 
 
    
Profit before tax  2,790 (328) 2,462 1,832 
Income taxation charge 9 (868) 89 (779) (1,095) 
 
 
    
Profit for the year   1,922 (239) 1,683 737 
 
 
    
Earnings per share (Pence)       
 
Basic earnings per ordinary share 11   1.1 0.5 
 
   
  
 
 
    
Diluted earnings per ordinary share 11   1.0 0.5 
 
   
    Silverdell Plc  
 
Consolidated statement of comprehensive income 
For the year ended 30 September 2011 
35 
  
2011 
£’000 
2010 
£’000 
 
 
 
Profit for the year  1,683 737 
 
Other comprehensive income 
Cash flow hedges: 
- gain arising during the year  40 86 
- related tax charge  (10) (24) 
  
  
  30 62 
  
  
Total comprehensive income for the year  1,713 799 
  
   Silverdell Plc Company Registration Number: 5755897 
 
Consolidated balance sheet 
At 30 September 2011 
36 
 
 
  
  Notes  
 2011 
£’000 
2010 
£’000 
Assets      
Non-current assets      
Goodwill  12  17,761 16,156 
Other intangible assets  13  453 - 
Property, plant and equipment  15  2,652 1,999 
Trade and other receivables  18  1,001 1,001 
    
  
    21,867 19,156 
    
  
Current assets      
Inventories and work in progress  16  3,064 998 
Trade and other receivables  18  17,305 12,774 
Cash and cash equivalents   2,567 3,626 
    
  
    22,936 17,398 
    
  
Total assets   44,803 36,554 
    
  
Non-current liabilities     
Borrowings 20  4,038 4,777 
Trade and other payables 23  1,001 1,001 
Contingent consideration 21  109 - 
Deferred tax liabilities 9  221 15 
    
  
    5,369 5,793 
    
  
Liabilities     
Current liabilities     
Borrowings 20  3,793 3,117 
Trade and other payables 23  10,864 8,114 
Other financial liabilities 17  31 71 
Contingent consideration 21  326 - 
Current tax liabilities   749 506 
    
  
   15,763 11,808 
    
  
Total liabilities   21,132 17,601 
    
  
Net assets   
 
23,671 18,953 
    
  
Equity      
Share capital  24  1,808 1,516 
Share premium account    2,456 17,813 
Equity reserve    721 464 
Hedging reserve    (22) (52) 
Capital reserve    - 3,749 
Other reserve    4,135 16,635 
Retained earnings    14,573 (21,172) 
    
  
Total equity   23,671 18,953  
    
  
 
These financial statements were approved by the Board of Directors on 29 November 2011. Signed on behalf of the 
Board of Directors:  
 
Ian Johnson 
Director 
   Silverdell Plc  
 
Consolidated statement of changes in equity 
For the year ended 30 September 2011 
37 
 
 
 
 
 
Share 
capital 
£’000 
Share 
premium 
£’000 
Other 
reserve 
£’000 
Equity 
reserve 
£’000 
Hedging 
reserve 
£’000 
Capital 
reserve 
£’000 
Retained 
earnings 
£’000 
      Total 
     £’000 
         
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  (3,749) - - - - 3,749 - - 
Share based payment charge 
including tax - - - 130 - - -           130 
 
        
At 1 October 2010 1,516 17,813 16,635 464 (52) 3,749 (21,172) 18,953 
 Net profit for year - - - - - - 1,683      1,683 
 
 Other comprehensive income - - - - 30 - -          30 
          
 Total comprehensive income 
for the year - - - - 30 - 1,683    1,713 
Shares issued 292 2,456 - - - - -       2,748 
Capital cancellation* - (17,813) (12,500) - - (3,749) 34,062              - 
Share based payment charge  - - - 257 - - -       257 
 
        
At 30 September 2011 1,808 2,456 4,135 721 (22) - 14,573 23,671 
 
        
 
 
* Following special resolutions of the Company which were confirmed by the High Court on 16 February 
2011, the Company cancelled the share premium account and capital reserve and also cancelled £12.5m of 
deferred shares from the other reserve, which increased retained earnings by a total of £34.1m. 
The Other Reserve is non-distributable and represents the remaining balance of the premiums arising on the issuance 
of certain warrants and of shares issued in order to acquire group companies. Further details are provided in Note 36.  Silverdell Plc 
 
Consolidated statement of cash flows 
For the year ended 30 September 2011 
38 
 Notes  
 2011 
£’000 
2010 
£’000 
Cash flows from operating activities      
Profit for the year   1,683 737 
Income taxation charge  9  779 1,095 
Finance costs 8  514 672 
Amortisation of intangibles  13  30 601 
Depreciation on property, plant and equipment 15  525 701 
Profit on disposal of property, plant and equipment   (2) (34) 
Share based payments 26  257 130 
Movements in working capital:     
- (Increase) / decrease in inventories   (2,066) 626 
- Increase in trade and other receivables   (3,599) - 
- Increase / (decrease) in trade and other payables   2,114 (2,591) 
   
  
Cash generated from operations   235 1,937 
     
Income tax paid   (628) (269) 
   
  
Net cash (outflow) / inflow from operating activities   (393) 1,668 
   
  
Cash flows from investing activities     
Purchase of property, plant and equipment   (656) (363) 
Proceeds from sale of property, plant and equipment   17 75 
Acquisition of subsidiaries (net of cash acquired)   (1,348) - 
   
  
Net cash outflow from investing activities   (1,987) (288) 
   
  
Cash flows from financing activities     
Interest paid   (433) (744) 
Interest paid on finance leases   (6) (1) 
Payments for hire purchase contracts principals   (53) (124) 
Proceeds from bank loans   - 5,500 
Repayments of bank loans   (930) (6,450) 
Proceeds from issue of equity shares (net)   2,198 - 
   
  
Net cash inflow / (outflow) from financing activities   776 (1,819) 
   
  
Net decrease in cash and cash equivalents   (1,604) (439) 
   
  
Cash and cash equivalents at the beginning of the year   1,286 1,725 
   
  
Cash and cash equivalents at the end of the year   (318) 1,286 
   
  
Cash and cash equivalents comprises: 
Cash at bank and in hand 
 
19  2,567 3,626 
Bank overdrafts 19  (2,885) (2,340) 
   
  
   (318) 1,286 
   
   39 
 
Note to the financial 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 14 Buckingham Street, London WC2N 6DF. The nature of the Group’s operations and its 
principal activities are set out in the Directors’ Report on pages 27 to 31. 
. 
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 £0.8m of debt during the year ended  30 September 2011. 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 22 and the Directors’ Report. 
After the balance sheet date, additional loan facilities were agreed with the bank and certain covenants relaxed. 
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. 
 
3.1  Standards not yet adopted 
A number of new standards, amendments to standards and interpretations are effective for accounting periods 
beginning on or after 1 January 2013 and have not been applied in preparing these consolidated financial 
statements.  None of these is expected to have a significant impact on the Group’s financial statements, with 
the exception of IFRS 9 Financial Instruments which could change the presentation and classification of 
financial assets and liabilities. The Group does not plan to adopt this standard early and the extent of the 
impact has not yet been determined. 
 
3.2 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. 
 
  40 
 
 
3.2 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 acquire. 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. 
Separately identifiable intangible assets are recognised on acquisition where appropriate and amortised over 
their useful economic life. 
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. 
 
 
 
  41 
 
3.2 Accounting policies (continued) 
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.  
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.  42 
 
3.2 Accounting policies (continued) 
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. 
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.  43 
 
3.2 Accounting policies (continued) 
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. 
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. 
 
 
  44 
 
3.2 Accounting policies (continued) 
 
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. 
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.  45 
 
4. Critical accounting judgements and key sources of estimation uncertainty (continued) 
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 12 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 and its subsidiaries RDS and A H Allen. 
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. 
2011 
Remediation 
£’000 
Consulting 
£’000 
Unallocated 
£’000 
Group 
£’000 
     
For the year ended 30 September 2011     
     
Revenue     
Total revenue 53,889 8,805 - 62,694 
Less: between segments (2,399) (599) - (2,998) 
 
    
External revenue 51,490 8,206 - 59,696 
 
    
  46 
 
5.  Segmental information (continued) 
Sales between segments are charged at prevailing market prices. 
 
 2011 
 
Remediation 
£’000 
Consulting 
£’000 
Unallocated 
£’000 
Group 
£’000 
     
For the year ended 30 September 2011     
     
Result     
Operating profit before amortisation and non-
recurring items 3,554 1,252 (1,502) 3,304 
Intangible assets amortisation - (30) - (30) 
Non-recurring expenses (24) (50) (224) (298) 
Finance costs  (17) (5) (492) (514) 
 
    
Profit / (loss) before tax 3,513 1,167 (2,218) 2,462 
Taxation (1,111) (369) 701 (779) 
 
    
Profit / (loss)for the year 2,402 798 (1,517) 1,683 
 
    
 
At 30 September 2011     
Balance sheet     
     
Total assets 32,206 12,446 151 44,803 
 
    
Total liabilities (13,605) (2,643) (4,884) (21,132) 
 
    
Other information     
     
Capital expenditure 656 197 28 881 
Depreciation 440 68 17 525 
 
    
 
As the Group’s activities are almost entirely based in the UK, no geographic segmental analysis is required. 
 
 
2010 
 
Remediation 
£’000 
Consulting 
£’000 
Unallocated 
£’000 
Group 
£’000 
     
For the year ended 30 September 2010     
     
Revenue 50,673 6,293 - 56,966 
Total revenue (221) (71) - (292) 
Less: between segments 
    
External revenue 50,452 6,222 - 56,674 
 
    
  47 
 
5.  Segmental information (continued) 
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) 
 
    
Profit / (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 
 
    
Unallocated costs relate principally to head office costs and interest charges on bank borrowings of the 
Group’s holding company. Unallocated assets and liabilities represent the assets and liabilities of the holding 
company, including bank borrowings. As the Group’s activities are almost entirely based in the UK, no 
geographic segmental analysis is required. 
6.  Operating profit  
 
 
 2011 
£’000 
2010 
£’000 
Operating profit is stated after charging/ (crediting):   
Share based payment charge  257 130 
Amortisation of intangible assets (see Note 13) 30 601 
Depreciation of:   
- owned assets 450 459 
- assets held under finance leases 75 242 
Auditors’ remuneration (see below) 87 75 
Hire of plant and machinery 1,422 988 
Operating lease rentals – land and buildings 574 337 
Profit on disposal of fixed assets (2) (34) 
   
 
  48 
 
6.  Operating profit (continued) 
 
Analysis of auditors’ remuneration 
 2011 
£’000 
2010 
£’000 
Audit services   
- audit of Company's annual accounts 17 16 
- audit of Company's subsidiaries, pursuant to legislation 57 49 
   
  
 74 65 
Other services   
- other services relating to tax compliance 13 10 
   
  
Auditors’ remuneration 87                 75 
 
  
 
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 
 2011 
£’000 
Total 
2010 
£’000 
        
Non-executive 
directors: 
       
Stuart Doughty 75 - - 75 - 75 80 
Mark Watts 30 - - 30 - 30 30 
        
Executive directors:        
Sean Nutley 220 2 20 242 20 262 225 
Ian Johnson 188 3 14 205 16 221 173 
 
       
Total 513 5 34 552 36 588 508 
 
       
 
The pension contributions disclosed above were all in respect of money purchase arrangements.  49 
 
 
7.  Staff costs including directors’ remuneration (continued) 
Directors’ remuneration and transactions (continued) 
 
Options over ordinary shares 
The directors’ interests in share options are disclosed in the directors’ report on page 27 and 28. 
Staff costs 
    2011 2010 
Employees    Number Number 
Average number of persons (including directors) employed by the Group in the year:  
Operational, sales and other   693 632 
Administrative    167 142 
   
  
   860 774 
   
  
The payroll costs in respect of the employees included in the table above were: 
   
2011 
£’000 
2010 
£’000 
     
Salaries and wages   29,944 26,354 
Social security costs   3,167 2,715 
Pension costs   284 119 
Share based payment charge (Note 26)   257 130 
   
  
   33,652 29,318 
   
  
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.  
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. 
 
 2011 
£’000 
2010 
£’000 
   
Short-term employee benefits 917 899 
Post-employment benefits 77 56 
 
  
Key management personnel include members of the Board and the Managing Directors of the principal 
subsidiaries. 
  50 
 
8.  Finance costs 
  
 2011 
£’000 
2010 
£’000 
    
Interest on bank overdrafts and loans  502 662 
Interest on obligation under finance leases  6 1 
Change in fair value of derivative financial instrument - 9 
Finance charge on contingent consideration  6 - 
 
 
  
Total finance costs  514 672 
  
  
9.  Tax on profit on ordinary activities 
Income tax recognised in profit or loss 
  
2011 
£’000 
2010 
£’000 
Tax charge comprises:    
United Kingdom corporation tax based on the profit for the year  795 915 
Adjustment in respect of previous years  (89) 226 
 
 
  
Total current tax expense   706 1,141 
    
Deferred tax income relating to the origination and reversal of 
temporary differences  (24) (239) 
Adjustment in respect of previous years  97 193 
 
 
  
Total deferred tax expense / (credit)  73 (46) 
 
 
  
Total tax expense  779 1,095 
  
  
The charge for the year can be reconciled to the profit per the income statement as follows: 
 
2011 
£’000 
 2011 
% 
2010 
£’000 
2010 
% 
     
Profit before tax 2,462  1,832  
 
 
 
 
 
Income tax expense calculated at the standard rate of 
27% (2010: 28%) 665 27 513 28 
Share based payment charge  25 1 36 2 
Effect of expenses that are not deductible in 
determining taxable profit 81 4 127 7 
Prior year adjustment 8 - 419 23 
     
Income tax charge recognised in profit or loss 779 32 1,095 60 
 
    
The Finance (No 2) Act 2010, which was substantively enacted on 20 July 2010, included legislation reducing 
the main rate of corporation tax from 28% to 27% from 1 April 2011. An additional 1% reduction reducing the 
rate to 26%, also effective from 1 April 2011, was announced by the UK Government in the Budget on 23 
March 2011 and substantively enacted on 29 March 2011. These changes to tax rates are not expected to have 
a material effect on the Group. 
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.  51 
 
 
9.  Tax on profit on ordinary activities (continued) 
There were no unrecognised deferred tax assets. 
            The movement in deferred tax was as follows:  Asset Liability 
  £’000 £’000 
    
At 1 October 2009  (120) - 
Credited to income statement   111 - 
Charged to hedging reserve  24 - 
Reclassified as liability  (15) 15 
  
  
At 30 September 2010  - 15 
    
Charged to income statement  - 73 
Charged to hedging reserve  - 10 
    
Acquired with subsidiary undertakings  - 123 
  
  
At 30 September 2011  - 221 
  
  
           The deferred tax liability comprises:  
 2011 
£’000 
2010 
£’000 
    
Accelerated tax depreciation  132 34 
Intangible assets  123 - 
Share based payments  (44) - 
Other  10 (19) 
 
 
  
  221 15 
  
  
10.  Non-recurring expenses 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: 
  
 2011 
£’000 
2010 
£’000 
    
Amortisation of intangible assets                      (see Note 13)  30 601 
Non-recurring expenses                                     (see below)  298 - 
  
  
  328 601 
Related income tax credit  (89) (157) 
  
  
   239 444 
  
  
 The non-recurring expenses of £298,000 (2010: £Nil) can be analysed further as follows. 
Business acquisition costs of £70,000 (2010: £Nil) comprise costs of the acquisition and subsequent integration 
of subsidiary undertakings acquired in 2011. Overseas business development of £68,000 (2010: £Nil) represent 
fees and expenses incurred in developing potential business ventures overseas. Corporate rebranding fees were 
incurred of £57,000 (2010: £Nil), while the Group also incurred costs of £52,000 (2010: £Nil) on internal 
business restructuring and fees of £51,000 (2010: £Nil) in connection with the capital restructuring during the 
year. 
  
  52 
 
11.  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.  
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. 
  
 2011 
earnings  
per share 
basic  diluted  
2010 
Earnings 
per share 
basic  diluted  
            Earnings £’000 pence pence £’000 pence pence 
       
       
Profit attributable to ordinary 
shareholders 
 
1,683 
 
1.1 1.0 
 
737 
 
0.5 0.5 
Non-recurring items, 
impairments, amortisation and 
share based payments  453 0.3 0.3 574 0.4 0.3 
 
      
Profit for adjusted earnings per 
share 2,136 1.4 1.3 1,311 0.9 0.8 
 
      
The adjusted numbers have been reported in order that the impact of the above charges against reported profit 
can be fully appreciated. 
Number of shares 
  
 
2011 
No. 
 
2010 
No. 
(Restated*) 
Weighted average number of ordinary shares used in calculation of 
basic earnings per share   155,663,646 151,654,717 
    
Effect of dilutive potential ordinary shares:    
Share options  2,087,492 353,309 
Warrants  11,374,179 11,374,179 
  
  
Weighted average number of ordinary shares used in calculation of 
diluted earnings per share  169,125,317 163,382,205 
  
  
 
The prior year comparative has been restated to be consistent with the inclusion this year of warrants held by 
Barclays Bank Plc from the prior year calculation of diluted earnings per share.  Other warrants are anti-
dilutive. Details of all warrants over the shares of the Company are disclosed in Note 24 53 
 
12.  Goodwill 
 
 £’000 
Cost   
At 30 September 2009 and 30 September 2010  35,611 
Acquisition of Allens (Note 14)  478 
Acquisition of RDS (Note 14)  1,127 
   
At 30 September 2011  37,216 
  
 
   
  £’000 
Accumulated impairment losses    
At 30 September 2009 , 30 September 2010 and 30 September 2011  (19,455) 
  
 
Carrying amount    
At 30 September 2011  17,761 
  
 
At 30 September 2010  16,156 
  
 
The carrying amount of goodwill relates to the Group’s two business segments as follows: 
 
  
 2011 
£’000 
2010 
£’000 
Remediation  10,869 10,869 
Consulting  6,892 5,287 
  
  
  17,761 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 cashflow 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% (2010: 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 1%.  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 2011 and 2010 for all CGUs have been based on the Group’s 
weighted average cost of capital, because the CGUs do not have significantly differing risk profiles.   
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.  54 
 
12.  Goodwill (continued) 
At 30 September 2011, goodwill was allocated to the Kitsons Environmental Europe Limited (“Kitsons”), 
Silverdell (UK) Limited (“Silverdell UK”) and Redhill Analysts Limited (“Redhills”) CGUs.  The goodwill 
arising on the acquisitions of Allens and RDS during the year (see Note 14) has been allocated to the Redhills 
CGU because these businesses are being integrated within the Redhills business. 
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 
 
 
13.  Other intangible assets 
  
Order  
Backlog 
Customer 
Contracts Total 
Cost     
     
At 1 October 2009 and 30 September 2010  1,480 5,434 6,914 
Acquisition of Allens (Note 14)  - 122 122 
Acquisition of RDS (Note 14)  - 361 361 
 
 
   
At 30 September 2011  1,480 5,917 7,397 
  
   
Accumulated amortisation      
At 1 October 2009  1,480 4,833 6,313 
Amortisation charge   - 601 601 
 
 
   
     
At 30 September 2010  1,480 5,434 6,914 
Amortisation charge  - 30 30 
 
 
   
At 30 September 2011  1,480 5,464 6,944 
 
 
   
Carrying amount     
At 30 September 2011  - 453 453 
  
   
At 30 September 2010  - - - 
  
   
 
All amortisation charges in the year have been included in administrative expenses. 
14.  Acquisitions 
 
The Group acquired 100% of the issued share capital of two new subsidiary undertakings during the year, both 
of which were acquired by Redhill Analysts Limited. A.H. Allen Limited (“Allens”) was acquired on 1 April 
2011 and RDS Asbestos Management Consultants [UK] Limited (“RDS”) was acquired on 30 August 2011. 
Both Allens and RDS operate environmental consulting businesses in the UK and both businesses are being 
integrated into the Group’s Consulting division. 
 
 
 
  55 
 
 
14.  Acquisitions (continued) 
 
The fair values of the assets and liabilities acquired are set out in the tables below. 
Allens 
  
Book value 
£’000 
Fair value 
adjustments 
£’000 
Fair value  
£’000 
     
Intangible assets  - 122 122 
Property, plant and equipment  241 - 241 
Trade and other receivables  261 (14) 247 
Cash and cash equivalents  91 - 91 
Trade and other payables  (91) (7) (98) 
Bank borrowings  (130) - (130) 
Current tax liability  (63) - (63) 
Deferred tax liability  - (32) (32) 
     
  
   
Net assets acquired  309 69 378 
  
   
Consideration paid:     
     
Cash payable    626 
Contingent consideration    230 
  
   
Total    856 
  
   
Goodwill arising    478 
  
   
RDS 
  
Book value 
£’000 
Fair value 
adjustments 
£’000 
Fair value  
£’000 
     
Intangible assets  - 361 361 
Property, plant and equipment  71 - 71 
Trade and other receivables  879 (116) 763 
Cash and cash equivalents  82 - 82 
Trade and other payables  (344) (10) (354) 
Finance lease obligations  (20) - (20) 
Current tax liability  (52) (13) (65) 
Deferred tax liability  - (91) (91) 
     
  
   
Net assets acquired  616 131 747 
  
   
Consideration paid:     
     
Cash payable    1,120 
Shares in Silverdell Plc    555 
Contingent consideration    199 
  
   
Total    1,874 
  
   
Goodwill arising    1,127 
  
   
  56 
 
 
14.  Acquisitions (continued) 
 
The fair value adjustments for both companies related to the adjustment of revenue recognition to be consistent 
with Group policy, provision for doubtful trade receivables, recognition of intangible assets on acquisition and 
adjustments to tax balances. 
Allens contributed revenue of £590,000 and operating profit of £72,000 to the Group results in the year ended 
30 September 2011. RDS contributed revenue of £362,000 and operating profit of £127,000. These results are 
included within the results of the Consulting division in the segmental analysis in Note 5. 
 
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 2009 648 1,176 860 2,774 5,458 
Additions 41 59 72 225 397 
Disposals - (451) - (10) (461) 
 
     
      
At 1 October 2010 689 784 932 2,989 5,394 
Additions 19 156 107 599 881 
Acquisitions 219 18 - 77 314 
Disposals - (281) - - (281) 
 
     
At 30 September 2011 927 677 1,039 3,665 6,308 
 
     
Accumulated depreciation      
At 1 October 2009 108 775 624 1,608 3,115 
Depreciation charge for the year 38 258 122 283 701 
Disposals - (418) - (3) (421) 
 
     
      
At 30 September 2010 146 615 746 1,888 3,395 
Depreciation charge for the year  21 99 56 349 525 
Disposals  - (264) - - (264) 
 
     
At 30 September 2011 167 450 802 2,237 3,656 
 
     
Carrying amount      
At 30 September 2011 760 227 237 1,428 2,652 
 
     
At 30 September 2010 543 169 186 1,101 1,999 
 
     
 
The net book value of assets held under finance leases is £372,000 (2010: £332,000). 
The book value of freehold land not depreciated is £269,000 (2010: £219,000) 
 
 
 
 
 
  57 
 
 
 
16.  Inventories 
  
 2011 
£’000 
2010 
£’000 
    
Raw materials and consumables  220 266 
Work in progress  2,844 732 
  
  
  3,064 998 
  
  
The cost of inventories recognised as an expense and included in ‘cost of sales’ amounted to £4,300,000  
(2010: £2,566,000). The Directors consider that the carrying amount of inventories approximates to their fair 
value.   
 
17.  Derivative financial liabilities 
  
 2011 
£’000 
2010 
£’000 
    
    Interest rate cap  - - 
  
  
    Interest rate swaps  31 71 
  
  
The notional principal amount of the outstanding interest rate cap contract was £1,477,500 (2010: £1,247,500). 
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 contracts at 30 September 2011 was 
£2,250,000 (2010: £1,750,000). At 30 September 2011, £1,500,000 was subject to a fixed interest rate of 2.1% 
and £750,000 was subject to a fixed interest rate of 5.8%. The main floating rates were GBP LIBOR.    
 
18.  Trade and other receivables 
 
  
 2011 
£’000 
2010 
£’000 
Non-current 
    
Other receivables (see Note 23)   1,001 1,001 
   
  
Total Non-Current   1,001 1,001 
   
  
     
Current 
    
Trade receivables   13,401 10,797 
Less: provision for impairment   (226) (243) 
   
  
Trade receivables net   13,175 10,554 
     
Prepayments and accrued income 
Due from customers for contract work   
1,482 
2,648 
 
1,150 
1,070 
   
  
Total Current   17,305 12,774 
   
  
Total    18,306 13,775 
   
   58 
 
18. Trade and other receivables (continued) 
The average credit period taken on sales is 67 days (2010: 58 days).  The Group has different provision 
policies for its various divisions which have been determined by reference 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 
of contracts completed.  Retentions held by customers as at 30 September 2011 were £646,000 (2010:  
£1,086,000). 
The Group’s exposure to credit risk and impairment losses related to trade and other receivables are disclosed 
in Note 22. 
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. 
 
Included in trade and other receivables are costs incurred in respect of a significant customer contract totalling 
£2.9m. The Group is in the process of validating and negotiating its final account with the main contractor. The 
opinion of the Directors is that as negotiations are at an advanced stage no provision is required against this 
debtor. 
 
19.  Analysis of net debt position 
 
2010 
£’000 
 Cash flow 
 £’000 
Other non-
cash changes 
£’000 
 2011 
 £’000 
     
Cash at bank and in hand 3,626 (1,059) - 2,567 
 
    
     
     
Bank loans (5,513) 930 (130) (4,713) 
Bank overdraft (2,340) (545) - (2,885) 
Finance lease obligations (41) 53 (245) (233) 
     
 (4,268) (621) (375) (5,264) 
 
    
The Group’s exposure to interest rate risks and a sensitivity analysis for financial assets and liabilities is 
disclosed in Note 22.  59 
 
 
20.  Borrowings 
 
   2011 
£’000 
2010 
£’000 
Non-current     
Bank loans    3,913 4,754 
Obligations under finance lease contracts   125 23 
   
  
   4,038 4,777 
   
  
Current     
Bank loans and overdrafts   3,685 3,099 
Obligations under finance lease contracts   108 18 
   
  
   3,793 3,117 
   
  
     
Total   7,831 7,894 
   
  
Further information on the principal features of the Group’s borrowings is set out in Note 22. 
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 bank loan is at both fixed and variable rates of interest.  £750,000 (2020: £1,750,000) is subject to an 
interest rate swap; the amount amortises by £250,000 per quarter and the rate on the amortised amount is fixed 
at 5.8%.  A further £1,477,500 (2010: £1,247,500) was subject to an interest rate cap agreement at 30 
September 2011, 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 remaining elements of the 
Group’s facilities are subject to interest at variable rates over LIBOR.  The finance leases are at variable rates 
of interest.  The weighted average interest rate on the fixed rate facilities is 5.8% for a weighted average period 
of 1.5 years.  
As at 30 September 2011, the Group had an undrawn committed revolving credit facility of £Nil (2010: £Nil). 
The net overdraft facility available as at 30 September 2011 was £2,750,000 (2010: £2,750,000) and the 
headroom available at the year-end was £2,432,000 (2010: £4,036,000).  
The non –current obligations under finance leases are all repayable within one and five years. The present 
value of future minimum lease payments is not materially different from the carrying amounts of the 
obligations under finance leases. 
 
21.  Contingent consideration 
 
   2011 
£’000 
2010 
£’000 
Non-current   109 - 
   
  
Current   326 - 
   
  
Total   435 - 
   
  
 
The contingent consideration relates to the acquisitions of Allens and RDS (see Note 14). These acquisitions 
provide for contingent consideration to become payable based on the performance of the businesses in the two 
years immediately following acquisition by the Group, with Gross Profit and Earnings Before Interest Tax 
Depreciation and Amortisation being the key target measures. The amount has been discounted from the 
acquisition date. Since the date of acquisition the discount has unwound and will continue to unwind for the 
next 2 years. 60 
 
 
 
22.  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 pages 23 and 24. 
 
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.    61 
 
22. Financial instruments (continued) 
(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. 
 
   2011 
£’000 
2010 
£’000 
Financial assets
(1)
     
At amortised cost:     
     Loans and receivables   13,175 10,554 
     Cash and cash equivalents   2,567 3,626 
   
  
Total financial assets   15,742 14,180 
   
  
(1)  Financial assets exclude prepayments, amounts due under long-term contracts, other receivables and other non-current 
receivables. 
 
   2011 
£’000 
2010 
£’000 
Financial liabilities
(2)
     
At amortised cost:     
 Trade and other payables     8,766 6,381 
 Obligations under finance leases   233 41 
 Other borrowings and overdrafts   7,598 7,853 
 Contingent consideration   435 - 
Derivatives – designated as cash flow hedges    31 71 
   
  
Total financial liabilities   17,063 14,346 
   
  
(2) Financial liabilities exclude tax and social security, deferred income and other non-current payables. 
 
(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.   62 
 
22. Financial instruments (continued) 
(c)  Credit risk (continued) 
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. 
The analysis of trade receivables in excess of 30 days old but not impaired is as follows: 
  
 
2011 
£’000 
2010 
£’000 
   
31 – 60 days 3,084 2,479 
61 – 90 days 1,176 859 
91-120 days 517 311 
121 – 150 days 699 148 
More than 151 days 501 715 
 
  
 5,977 4,512 
 
   63 
 
22. Financial instruments (continued) 
(c)  Credit risk (continued) 
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: 
 
  2011 
£’000 
2010 
£’000 
     
Balance at beginning of the year   243 353 
(Decrease) / increase in impairment provision recognised   (11) 167 
Acquired with subsidiary undertakings   (135) - 
Receivables written off / (written back)    129 (277) 
   
  
   226 243 
   
  
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. 
(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. 
 
 
 
 
 
 
 
 
 
 
 
 
 
  64 
 
22. Financial instruments (continued) 
(d)  Liquidity risk (continued) 
 
 
 Book 
Value 
  Undiscounted Cashflows 
30 September 2011  
 
£’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  
 
13,175 
  
13,175 
 
- 
 
- 
 
- 
 
- 
 
13,175 
 
 
Variable interest rate 
instruments 
 
 
 
2,567 
  
 
 
2,567 
 
 
 
- 
 
 
 
- 
 
 
 
- 
 
 
 
- 
 
 
 
2,567 
 
 
 
      
 15,742  15,742 - - - - 15,742 
 
 
 
      
         
Financial liabilities         
 
Non-interest bearing 
 
9,232 
  
8,797 
 
- 
 
326 
 
109 
 
- 
 
9,232 
 
 
Variable interest rate 
instruments 
 
 
 
7,831 
  
 
 
2,894 
 
 
 
227 
 
 
 
672 
 
 
 
4,038 
 
 
 
- 
 
 
 
7,831 
 
 
 
      
 17,063  11,691 227         998 4,147 - 17,063 
 
 
 
      
         
 
30 September 2010 
  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 
 
 
 
       65 
 
22. 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 would increase or decrease by £45,000 (2010: £61,000) 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.    66 
 
23. Trade and other payables 
 
   
2011 
£’000 
2010 
£’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. 
 
   
2011 
£’000 
2010 
£’000 
Current     
Trade payables   6,031 4,037 
Other taxation and social security   2,098 1,733 
Other payables   2,735 2,344 
     
   10,864 8,114 
     
An analysis of the maturity of debt is given in Note 22(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 69 days (2010: 45 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 2011 or 
2010. 
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.  67 
 
 
24. Share capital 
  2011 2010 
 
 
No. £’000 
 
No. 
 
£’000 
Authorised:     
Ordinary shares of 1p each  260,000,000 2,600 260,000,000 2,600 
 
    
 
Allotted, called up and fully paid     
Ordinary shares of 1p each  180,839,717 1,808 151,654,717 1,516 
 
    
 
Movement in issued share capital     
At 1 October  - 1p ordinary shares 151,654,717 1,516 526,547,188 5,265 
Shares issued in the year 29,185,000 292 - - 
1p deferred shares cancelled - - (374,892,471) (3,749) 
 
    
At 30 September 180,839,717 1,808 151,654,717 1,516 
 
    
The Company issued 23,635,000 shares at 10p per share in a placing on 11 August 2011, generating net 
proceeds of £2,192,000 after expenses. The nominal value of the shares issued was £237,000 and the premium 
arising after expenses was £2,001,000.  The purpose of the placing was to fund the acquisition of RDS (see 
Note 14) and to provide additional resources for the Group to grow. 
The Company subsequently issued a further 5,550,000 shares at 10p per share to the vendors of RDS as part of 
the consideration for that acquisition. The nominal value of the shares issued was £55,000 and the premium 
arising was £500,000. 
In March 2010 the Company cancelled all the 1p deferred shares in issue. 
Barclays Bank Plc holds 11,374,179 (2010: 11,374,179) warrants valid until 2017 to subscribe for ordinary 
shares in the Company at 5p (2010: 5p) per ordinary share.  Marwyn Neptune Fund LP holds warrants valid 
until 2013 to acquire up to 3,220,105 (2010: 3,220,105) ordinary shares in the Company at 75p (2010: 75p) per 
ordinary share. Details of options over the Company’s share capital are disclosed in Note 26.  68 
 
25. Capital and other commitments 
At 30 September 2011, the Group had no capital commitments (2010 :£Nil). 
 
Operating leases 
The Group had outstanding total commitments under non-cancellable operating leases at 30 September which 
fall due as follows: 
 2011 2010 
 
Land and 
buildings 
£’000 
 
Other 
£’000 
Land and 
buildings 
£’000 
 
Other 
£’000 
Operating leases which expire:     
Within one year 331 715 432 546 
Within two to five years 730 734 620 257 
After five years 159 2 229 66 
 
    
 1,220 1,451 1,281 869 
 
    
26. 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: 
  2011 2010 
 
 
 
 
Number of 
share 
options 
Weighted 
average 
exercise 
price 
£ 
Number of 
share 
options* 
Weighted 
average 
exercise 
price 
£ 
     
Outstanding at beginning of year 13,225,247 0.087 2,905,104 0.945 
Granted during the year 2,190,190 0.115 13,956,046 0.087 
Forfeited during the year (359,171) (0.090) (3,635,903) 0.773 
 
    
Outstanding at the end of the year 15,056,266 0.090 13,225,247 0.087 
 
    
Exercisable at the end of the year - - - - 
 
    
*The number of options granted in in the prior year has been reduced by 2,754,679 to correct an error in the 
prior year disclosure. 
The options outstanding at 30 September 2011 had a weighted average remaining contractual life of 8 years 
(2010: 9 years).  In 2011, options over 2,190,190 shares were granted in April 2011. The aggregate of the 
estimated fair values of the options granted on that date is £105,000. 
Of the options outstanding at 30 September 2011, 4,800,000 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.  69 
 
26. Employee share schemes (continued)  
The inputs into the valuation models used for options granted each year are as follows: 
 
  2011 
 
2010 
 
     
Weighted average share price   £0.105 £0.090 
Weighted average exercise price   £0.115 £0.087 
Expected volatility   77% 77% 
Expected life   6.5 years 6.5 years 
Risk-free rate   3.50% 3.35% 
Expected dividend yield   0% 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. 
The charge in the income statement relating to the above share-based payments was £257,000 (2010: 
£130,000). 
27.  Contingent liabilities 
There are Group cross guarantees from the Company for all monies due to certain of the Group’s banks and 
surety lenders. The total potential exposure to the Group’s banks under such guarantees was £5,031,000 (2010: 
£4,227,000). No monies were outstanding at 30 September 2011 (2010: £nil). In the normal course of business 
there are contingent liabilities including the provision of bonds in respect of completed and uncompleted 
contracts. 
28. Related party transactions 
During the year to 30 September 2011, the Group paid £30,000 (2010: £30,000) to Marwyn Capital LLP for 
corporate finance services and directors’ fees and £90,000 (2010: £92,071) to Marwyn Partners Limited for 
rent and other office services. At the end of that year £nil (2010: £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 2011, Kalistar LLP, a partnership of certain of the executive directors of 
Silverdell (UK) Limited, charged £48,000 (2010: £48,000) for the provision of cars used by some of the 
directors of Silverdell (UK) Limited.  At the end of that year £14,000 (2010: £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 (2010: £29,000) per annum and £nil (2010: £nil) 
remained outstanding at the year-end. 
 
29.  Post balance sheet events 
After the balance sheet date, a £1m extension of the Revolving Credit Facility was agreed with the bank and 
the cash flow covenant was relaxed for 12 months.  Silverdell Plc                                                  Company Registration Number: 5755897 
 
 
Company balance sheet 
At 30 September 2011 
 
70 
  Notes 
 
  2011 
£’000 
2010 
£’000 
Fixed assets      
Investments 32  24,121 23,943 
Tangible assets 33  49 38 
     
    24,170 23,981 
  
 
   
Current assets      
Debtors:  amounts falling due within one year  34  6,087 6,371 
  
 
   
      
Creditors:  amounts falling due within one year 35  (9,582) (10,129) 
 
 
 
   
Net current liabilities    (3,495) (3,758) 
  
 
   
Total assets less current liabilities   20,675 20,223 
  
 
   
Creditors:  amounts falling due after one year  35  (3,913) (4,755) 
      
    
  
Total net assets    16,762 15,468 
    
  
Capital and reserves      
Called up share capital  24  1,808 1,516 
Share premium account  36  2,456 17,813 
Equity reserve  36  721 464 
Other reserve  36  4,135 16,635 
Capital reserve  36  - 3,749 
Profit and loss account  36  7,642 (24,709) 
  
 
   
Total shareholders’ funds    16,762 15,468 
  
 
   
 
The financial statements were approved by the Board of directors and authorised for issue on 29 November 2011.  
They were signed on behalf of the Board of directors. 
 
 
Ian Johnson 
 
Director 
 
    Silverdell Plc 
 
 Notes to the financial statements 
At 30 September 2011 
71 
30.  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. 
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.     Silverdell Plc 
 
 Notes to the financial statements 
At 30 September 2011 
72 
31.       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 
£1,711,000 (2010:£1,606,000). 
 
32.  Investments 
    
 2011 
£’000 
Cost     
 
  
 
 
At 1 October 2010    40,663 
Capital contributions to subsidiaries arising from 
share based payments    178 
   
 
 
At 30 September 2011   
 
40,841 
    
 
 
Impairment     
At 1 October 2010 and 30 September 2011   
 
(16,720) 
    
 
Carrying amount     
At 30 September 2011    24,121 
    
 
At 30 September 2010     23,943 
    
 
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% Consulting services 
Kitsons Group Ltd England and Wales 100% Asbestos and environmental services 
A.H. Allen Ltd* England and Wales 100% Consulting services 
RDS Asbestos Management 
Consultants [UK] Ltd* England and Wales 100% Consulting services 
Kitsons Group Ltd England and Wales 100% Asbestos and environmental services 
 
* Held via Redhill Analysts Ltd 
    Silverdell Plc 
 
 Notes to the financial statements 
At 30 September 2011 
73 
 
33.  Tangible fixed assets 
The Company acquired owned computer equipment with a cost of £30,000 (2010: £55,000) during the year 
and incurred a depreciation charge on these assets of £19,000 (2010: £17,000). The closing net book value of 
tangible fixed assets was £49,000 (2010: £38,000). 
 
34.  Debtors 
Amounts falling due within one year: 
 
   
2011 
£’000 
2010 
£’000 
     
Other debtors and prepayments   169 265 
Amounts due from group undertakings   5,917 5,106 
Corporation tax recoverable   - 985 
Deferred tax asset   1 15 
   
  
   6,087 6,371 
   
  
The deferred tax asset relates to timing differences on tangible fixed assets and the amount charged to the profit and 
loss account for the year was £14,000 (2010: credit of £15,000). 
 
35.  Creditors 
 
 Amounts falling due within one year 
 
   
 2011 
£’000 
2010 
£’000 
     
Bank overdraft   2,072 2,340 
Bank loans   800 759 
Other creditors and accruals   465 306 
Amounts due to subsidiary undertakings   6,245 6,724 
     
   9,582 10,129 
     
The carrying amount of trade payables approximates to their fair value. 
 
 Amounts falling due after more than one year 
 
   
 2011 
£’000 
2010 
£’000 
     
Bank loan   3,913 4,755 
     
Full details of the Company’s bank loans are disclosed in Notes 20 and 22 to the Group financial statements.    Silverdell Plc 
 
 Notes to the financial statements 
At 30 September 2011 
74 
36.  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 At 1 October 2010 17,813 464 16,635 3,749 (24,709) 13,952 
Share-based payment credit in the year - 257 - - - 257 
Retained loss for the year - - - - (1,711) (1,711) 
Shares issued 2,456 - - - - 2,456 
Capital restructuring (17,813) - (12,500) (3,749) 34,062 - 
 
 
  
 
  
At 30 September 2011 2,456 721 4,135 - 7,642 14,954 
 
      
 
Following special resolutions of the Company which were confirmed by the High Court on 16 February 2011, the 
Company cancelled the share premium account and capital reserve and also cancelled £12.5m of deferred shares from 
the other reserve, which increased retained earnings by a total of £34.1m. 
The remaining balance in other reserves is not distributable and relates 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. 
 
 
37.  Related parties 
 
The Company has taken advantage of the exemption available under FRS8 Related Party Disclosures not to disclose 
details of transactions between wholly owned Group companies.