Idox plc
Annual Report & 
Accounts 2010 1 Financial and Operational Highlights
2 Chairman’s Statement
4 Chief Executive’s Report
6 Chief Financial Officer’s Review
8 Board of Directors
9 Directors’ Report
13 Report on Remuneration
15 Corporate Governance Report
17 Report of the Audit Committee
18 Report of the Independent Auditors (Group)
19 Consolidated  Statement of Comprehensive Income
20 Consolidated Balance Sheet
22 Consolidated Statement of Changes in Equity
24 Consolidated Cash Flow Statement 
25 Notes to the Accounts
60 Report of the Independent Auditors (Company) 
61 Company Balance Sheet
62 Notes to the Company Financial Statement
70 Idox Plc Software and Services at a Glance
72 Company Information
Contents Idox plc Annual Report and Accounts 2010 1
For the year ended 31 October 2010
Revenues £31.3m  > (2009: £32.2m) reflecting reduction in the low margin 
contract recruitment business and benefit of large, one-off project in 2009 
financial year, offset by acquisitions
EBITDA increased by 16% to £8.7m  > (2009: £7.5m) 
Normalised pre-tax profit* £8.0m up 21%  > (2009: £6.6m) 
Normalised EPS* increased 16% to 1.75p  > (2009: 1.51p) 
Basic EPS 1.07p (2009: 1.01p)
Profit before tax £4.9m  > (2009: £4.5m) after a higher non-cash amortisation 
charge related to the acquisitions made during the year
Trebled final proposed dividend to 0.35p  > (2009: 0.12p), making total for year 
of 0.45p (2009: 0.20p), 125% increase
£2.0m cash at period end, £0.9m net debt  > (2009: £6.9m cash; £3.2m net cash) 
after funding £10.6m of acquisitions
Completed and fully integrated three earnings enhancing acquisitions,  >
further boosting revenue visibility and market leading positions
Financial and Operational Highlights
*  Normalised pre-tax profit & EPS excludes amortisation, exceptional restructuring and corporate finance charges and share option costs. Idox plc Annual Report and Accounts 2010 2
For the year ended 31 October 2010
Chairman’s Statement
Idox is a specialist high end provider of 
document management, case management, 
workflow systems, content and related 
web-based portals. These skills have been 
successfully applied to the local government 
domain and are increasingly being developed on 
a managed or shared service partnership basis 
with groups of councils to save costs and gain 
efficiency.  The Group is now positioned to apply 
these skills to wider market sectors. 
By the end of 2010, the Group served more than 
90% of UK local authorities, with 62% recurring 
revenues (2009: 55%) and the Group’s land & 
property software solutions business comprises 
over 60% of installed UK local government 
planning solutions. 
The Group was also bolstered through the 
acquisition and integration of GRANTfinder, 
Strand Electoral Management Services and 
the Local Authority Modernisation Programme 
(LAMP) long-term managed services contracts 
with 11 local authorities. These acquisitions 
enabled the Group to expand into additional 
managed service agreements, election 
management software and further grants 
content.  The acquisition of GRANTfinder 
brings the critical mass required to make the 
Solutions segment a significant profit generator 
in forthcoming periods. 
The acquisition of j4b Software & Publishing 
Limited in 2009 had already added an 
international dimension to our business in 
Holland and in late 2010 Idox won its first 
contract in Spain. 
The post financial year-end acquisition of 
McLaren Software, a Glasgow based company 
with a presence in Germany and Houston, 
Texas, marks a step in the Group’s strategy to 
provide its document management services to 
broader public and private markets in the UK 
and internationally. The acquisition broadens 
the Group’s footprint into McLaren’s industrial 
markets in pharmaceuticals and oil & gas.
The acquisition will also build on the Group’s 
document management systems, workflow and 
related technology and expertise to expand a 
development centre of excellence in Scotland 
and offer this expertise to other markets where 
Idox can become a technology and market 
leader.
The Group will continue to identify opportunities 
to diversify into new geographies and new 
markets and aims through organic growth, 
acquisition and expansion outside the UK and 
public sector to grow its revenue and profits. 
The Board also continues to buy-back shares to 
fund share option incentives whilst pursuing its 
objective of promoting double-digit normalised 
EPS growth.
2010 highlights and markets
The publication of the government’s CSR in 
October 2010 has brought clarity to both central 
and local government spending plans. As a 
result the Board is confident that there will be 
no major adverse impact on software & services 
expenditure at local government level where it 
supports efficiencies in areas like planning. 
Local government has become increasingly 
outcomes driven, focused on return on 
investment and improvements in effectiveness 
and the maintenance of services to the 
community. Since the CSR was announced, 
independent market research company Kable 
has re-iterated its forecast of modest growth 
in the local government software and services 
market for the next three years.
In 2010 the Group passed a further milestone 
in its development as it diversified beyond its 
traditional local government client base into 
wider market sectors.
EBITDA rose 16% despite a 3% fall in revenues, 
which reflected in part the successful wind down 
of the large Scottish government planning portal 
project in the previous financial year.  Idox plc Annual Report and Accounts 2010 3
For the year ended 31 October 2010
By the end of 2010, the 
Group served more 
than 90% of UK local 
authorities, with 62% 
recurring revenues 
(2009: 55%)
Operating costs were reduced during the 
year, even after the acquisitions of LAMP , 
Strand Electoral Management Services 
and GRANTfinder.  On a like-for-like basis, 
excluding acquisitions, overheads were £1.5m 
or 9% lower, as a result of tight cost controls 
and continued productivity and efficiency gains.  
In line with its previously announced policy of 
accelerating dividend increases, the Board 
proposes a significant rise in its final dividend to 
0.35p per share.
Finally, I would like to thank, on behalf of 
the Board, all our staff for their skills and 
dedication as Idox has transformed into a 
significant provider of profits with a market 
leading position over the last three years, 
most of it during a time of great economic 
uncertainty.  Our thanks are also extended to 
our shareholders who have been so supportive 
over this period.
Martin Brooks
Chairman
25 January 2011
Chairman’s Statement cont’d Idox plc Annual Report and Accounts 2010 4
For the year ended 31 October 2010
Chief Executive’s Report
When CAPS Solutions was acquired in 2007, 
the Group inherited a large embryonic contract 
to provide a planning system for Northern 
Ireland. This year not only saw the successful 
completion and roll out of this system across 
Northern Ireland but also the completion of the 
Scottish government contracts with a faultless 
post completion audit.   
Project sales within the Solutions segment were 
affected by Government cutbacks.  However, 
Idox enters 2011 with a strong pipeline. The 
Solutions segment gained critical mass through 
the acquisition of GRANTfinder, which has 
enabled it to deliver improved grants information 
and policy web solutions to the UK and now 
Europe utilising a common infrastructure. The 
same model is now being extended in both 
Holland and Spain, building on the division’s EU 
grants information coverage. 
The Recruitment segment had its most difficult 
year yet with public sector contractor revenues 
falling materially in the middle of the year and 
permanent recruitment revenues growing only 
slowly as it tracked the hesitant private sector 
recovery. Despite this, the business managed to 
deliver a positive contribution in the year. The last 
quarter saw a marked improvement in sentiment 
in both contract and permanent activity, giving 
the Board confidence for the current trading 
year.
In 2010, Idox continued to invest in software 
application development and has coordinated 
a number of initiatives internally to provide 
better solutions for customers. The Group has 
continued to manage its cost base meticulously 
and integrated three acquisitions without 
2010 was a challenging year which Idox 
successfully navigated. The customer base 
started the year already well advanced in their 
thinking on the need to cut costs, but uncertain 
as to the level of savings they would be required 
to achieve. Despite the uncertainty around 
the election in May, which distorted first half 
trading and delivery schedules, as well as the 
mini budget in July and the CSR in October, the 
outturn was broadly in line with most authorities’ 
expectations.
Going forward into 2011, Idox’s market is 
already well advanced in its execution and 
is now making final adjustments. Therefore 
the Group expects the market for application 
solutions that deliver a tangible return on 
investment will grow now from a flat base in 
2009/10.
The Software segment managed this change in 
the market well, ending the year with a strong 
sales performance. The year closed with a 
different mix from originally forecast as some 
major projects were stopped and investment 
in dashboard productivity solutions was 
surprisingly weak, but this was offset by strong 
performance in public access web solutions. 
The Software segment had some notable 
successes in partnering with authorities to build 
shared service solutions. This approach, plus 
a more comprehensive offering in managed 
technical services and outsourcing, delivered 
tangible improvements in services, cost 
efficiencies and speed of implementation.  
Internally Idox continued to place a strong 
emphasis on quality and customer care with 
further improvements in product performance, 
delivery and data migration. In 2011, the Group 
will further improve customer support and 
enhance client customer communication and 
strategic partnering.
The acquisition of the LAMP managed services 
contracts and Strand Electoral Management 
Services added to the Group’s market 
penetration, provided further synergies and 
expanded and improved the premium managed 
services offering.
12 months to 31 October 2010
12 months to 31 October 2009
Software 77%
Solutions
13%
Recruitment
10%
Software 78%
Solutions
10%
Recruitment
12%
12 months to 31 October 2010
12 months to 31 October 2009
Software 77%
Solutions
13%
Recruitment
10%
Software 78%
Solutions
10%
Recruitment
12%
Divisional analysis: Revenue Mix Idox plc Annual Report and Accounts 2010 5
increasing overheads.  As part of the integration 
process, the Group has also revised its 
corporate branding. 
Outlook
The Group has started the current financial year 
in a strong position, with greater predictability 
than has been the case for the past two years 
and a strong pipeline in all its businesses.  
Although total public sector spending is under 
intense pressure, Idox products and services 
enhance local government efficiencies and the 
Group expects the market for solutions that 
deliver a tangible return on investment to grow.  
The Group also has a wider range of capabilities, 
larger market share and broader reach in its 
markets.  There are encouraging signs of 
increased activity in a number of areas and 
Idox is well positioned to take advantage of 
new opportunities emerging in both 2011 and 
beyond.
Richard Kellett-Clarke
Chief Executive Officer 
25 January 2011
2010 2009 2008 2007 2006 2010 2009 2008 2007 2006
13.03
20.62
34.03
32.16
2.50
7.60
6.70
2.90
31.27
8.00
2010 2009 2008 2007 2006 2010 2009 2008 2007 2006
13.03
20.62
34.03
32.16
2.50
7.60
6.70
2.90
31.27
8.00
Turnover (£m) Normalised profit 
before tax (£m)
Chief Executive’s Report cont’d
For the year ended 31 October 2010 Idox plc Annual Report and Accounts 2010 6
For the year ended 31 October 2010
Gross margins for the Group saw a marked 
improvement to 83% (2009: 77%), with 
increases in all three businesses.  Software 
margins of 87% (2009: 85%) improved due to 
the higher mix of recurring maintenance and 
managed service revenues and the absence of 
the additional costs incurred in 2009 in relation 
to the delivery of the Scottish Government 
Stream 2 project.   
The continuing shift within the Recruitment 
segment toward permanent placements 
resulted in gross margins of 39% (2009: 31%).  
The increased scale and recurring content 
subscription revenues within the Solutions 
business generated margins of 92% (2009: 
72%).
Operating costs were further reduced to £17.3m 
(2009: £17.4m) even after the three acquisitions 
in the last financial year.  On a like-for-like basis, 
excluding acquisitions, overheads were £1.5m, 
or 9%, lower as a result of tight cost controls 
and continued productivity and efficiency gains.  
EBITDA increased by 16% to £8.7m 
(2009: £7.5m) reflecting the progress made 
in managing revenues in a challenging 
environment, increasing gross margins and 
managing operating costs in addition to the 
maiden contribution from acquisitions.  As a 
result EBITDA margins increased to 28% (2009: 
23%)
Normalised pre-tax profit, excluding 
amortisation, share options costs and 
exceptional charges increased by 21% to £8.0m 
(2009: £6.6m). Pre-tax profit was £4.9m (2009: 
£4.5m) after the non cash amortisation charge 
following the acquisitions made in the year, 
non cash share option charge and exceptional 
restructuring and corporate finance charges of 
£0.6m (2009: £0.4m). 
Group revenues were £31.3m (2009: £32.2m) 
reflecting the reduction in the low-margin 
contract recruitment business and the benefit 
in the prior year of the large Scottish Executive 
contract.
  
The Software segment, which accounts for 77% 
of Group revenues, delivered £24.1m (2009: 
£25.1m), of which around 62% were recurring 
(2009: 52%).  In 2009, Software revenue was 
boosted by £1.0m by the inclusion of both 
the second and third phases of the Scottish 
Government e-planning project.    
In common with the previous financial year, 
newly contracted business contained a higher 
proportion of maintenance and managed 
service contracts which, on a like-for-like 
basis, contributed to a 6% increase in software 
maintenance revenues and increases revenue 
visibility into 2011 and beyond.   
The acquisition of the 11 LAMP managed 
services contracts in March 2010 for £2.9m and 
Strand Electoral Management Services in July 
2010 for £4.4m together contributed £1.1m to 
Software revenues.  
The Solutions segment increased revenue by 
24% to £4.2m (2009: £3.4m) as a result of a six-
month contribution from GRANTfinder, acquired 
in May 2010, which provides content to local 
authorities and other public sector bodies.  The 
acquisition of GRANTfinder for £3.3m has further 
augmented recurring revenues, which now make 
up 62% (2009: 53%) of Solutions turnover.  
The Recruitment segment reported revenues 
of £3.0m (2009: £3.8m), reflecting a £1.2m 
decline in the low margin contract recruitment 
business.  However, revenues in the high margin 
permanent recruitment business doubled to 
£0.6m as its core operating markets showed 
signs of recovery during the final quarter of the 
financial year.
Chief Financial Officer’s Review Idox plc Annual Report and Accounts 2010 7
Normalised earnings per share were up 16% to 
1.75p (2009: 1.51p). Basic earnings per share 
were 1.07p (2009: 1.01p).
The Board proposes a final dividend of 0.35p to 
give a full year dividend of 0.45p (2009: 0.20p). 
The 125% increase in dividend reflects the 
Board’s continuing confidence in the long-term 
strength of the business, its revenue visibility and 
its healthy operating cash generation. 
Idox ended the year with £2.0m cash (2009: 
£6.9m) and net debt of £0.9m (2009: £3.2m 
net cash) after funding the three acquisitions, 
totalling £10.6m, a dividend payment of £0.8m 
and share buy backs of £0.3m.
William Edmondson
Chief Financial Officer
25 January 2011
Gross margins for the 
Group saw a marked 
improvement to 83% 
(2009: 77%), with 
increases in all three 
businesses.
Chief Financial Officer’s Review cont’d
For the year ended 31 October 2010 Idox plc Annual Report and Accounts 2010 8
For the year ended 31 October 2010
Board of Directors
Chairman:
Martin Brooks (Aged 60) 
Martin Brooks was CEO of Financial 
Times Information, where he brought 
together Extel and Interactive Data 
Corporation to form the world’s 
leading supplier of securities valuation 
data (1994-98). He has spent over 30 
years in newspapers management, 
information publishing and IT, which 
started at the Financial Times in 
1977, after six years serving with the 
Brigade of Gurkhas. He has also been 
an adviser or director to other bodies 
including the ICAEW and is currently 
Chairman of Cornwall Development 
Company, the development agency of 
Cornwall Council.
Peter
Lilley
Richard 
Kellett-Clarke
Martin
Brooks
Christopher
Wright
William 
Edmondson
Non-Executive Director:
Christopher Wright (Aged 53) 
Christopher Wright was previously 
Global Head of Dresdner Kleinwort 
Capital.  He is now Chairman of 
EMAlternatives LLC, a Director 
of Merifin Capital, and holds 
directorships of Roper Industries 
Inc and other public and private 
companies in the USA and elsewhere.  
He is an independent Non-Executive 
Director and chairs the Remuneration 
Committee.
Chief Executive Officer:
Richard Kellett-Clarke (Aged 56)
Richard Kellett-Clarke has 25 
years of directorial experience.  He 
joined Idox first as CFO, then was 
appointed MD of the software division, 
followed by COO in 2007.  He was 
appointed CEO in November 2007.  
Before this he has held a number of 
CFO appointments with Brady plc, 
Pickwick Group plc, Pearson PLC 
and Invensys plc.  In addition, he was 
a founder and Managing Director of 
AFX NEWS Ltd, now part of Thomson 
Reuters, IT Director of Financial Times 
Information, and Founding Director of 
Sealed Media Ltd. a DRM Internet start 
up (now part of Oracle).
Chief Financial Officer:
William Edmondson (Aged 41)
William Edmondson previously spent 
7 years at Autodesk inc., latterly 
as Finance Director for the Europe, 
Middle-East, India & Africa region.  
Autodesk inc. is the world’s leader in 
2D and 3D Design software.  Prior 
to that he was a Divisional Controller 
at ITV plc and Finance Director of 
a Technology start-up focused on 
e-security.  He is a UK Chartered 
Accountant, having trained at 
PriceWaterhouseCoopers.
Non-Executive Director:
Rt. Hon. Peter Lilley MP (Aged 67)
Peter Lilley, MP for Hitchin and 
Harpenden, was Parliamentary Private 
Secretary to Ministers for Local 
Government and after a period at the 
Treasury served as Secretary of State 
for Trade and Industry and Secretary 
of State for Social Security until 1997.  
He is a Non-Executive Director and 
Deputy Chairman of Tethys Petroleum 
Ltd.  He is the senior independent 
Non-Executive Director of Idox and 
chairs the Audit Committee. Idox plc Annual Report and Accounts 2010 9
For the year ended 31 October 2010
Directors’ Report
The Directors are pleased to submit their report and audited financial statements for the year ended 
31 October 2010.
Principal Activities and Review of Business
The Company is a holding company.  The principal activities of the Group are the development and 
supply of information and knowledge management products and services.  A more detailed review 
of the business can be found in the Chairman’s Statement, the Chief Executive’s Report and the 
Chief Financial Officer’s Review on pages 2 to 7.
Results and Dividends
The audited financial statements for the year ended 31 October 2010 are set out on pages 19 to 
69.  The Group’s profit for the year after tax amounted to £3,638,000 (2009: £3,459,000).  The 
Directors paid a dividend of 0.10 pence per share in the first half of the 2010 financial year, in 
respect of the year ended 31 October 2010.  The Directors will propose, at the forthcoming AGM, a 
final dividend of 0.35 pence per share in respect of the year ended 31 October 2010.  
Directors and their Interests
The Directors who served during the year and their beneficial interests (including those of their 
immediate families) in the Company’s 1p ordinary share capital were as follows:
Number of Shares 31 October 2010 1 November 2009
C Wright 912,222 702,222
Rt. Hon. P B Lilley MP 533,000 533,000
M Brooks 
1
3,223,206 2,973,206
R G Q Kellett-Clarke 
2
5,634,848 5,484,848
W Edmondson 100,000 100,000
1
  2,952,127 (2009: 2,702,127) of these shares are held through a Self Invested Pension Plan.
2
  1,616,667 (2009: 1,466,667) of these shares are held through Self Invested Pension Plans and 1,200,000 (2009: 
1,200,000) shares are held through certain members of his family and a family trust.
In addition to the shareholdings listed above, the Directors have been granted options over ordinary 
shares.  Full details of these options are given in the Report on Remuneration on page 14.
Details of the Directors’ service contracts can be found in the Report on Remuneration on page 13.
Charitable and Political Donations
The Group made £1,000 charitable donations during the year (2009: £2,295) and no political 
donations during the year (2009: £Nil).
Payment of Creditors
It is the group’s practice to agree credit terms with all suppliers and to pay all approved invoices 
within these agreed terms.  The average trade payable days for the year were 93 days (2009: 64 
days). Idox plc Annual Report and Accounts 2010 10
For the year ended 31 October 2010
Directors’ Report cont’d
Substantial Shareholdings
As at 30 November 2010 the Company was aware of the following interests in 3% or more of its 
issued share capital:
Shareholder Number of shares % Holding
ISIS Equity Partners 33,137,409 9.63
Herald Investment Trust plc 30,316,667 8.81
JO Hambro Capital Management 20,000,000 5.81
Highclere International Investors 19,111,801 5.55
Constellation Software 17,200,000 5.00
Rensburg Sheppards Investment Management 17,082,381 4.96
Brewin Dolphin 13,193,197 3.83
Williams De Broë 12,163,825 3.53
Health, Safety and Environmental Policies
The Group recognises and accepts its responsibilities for health, safety and the environment 
(H,S&E) and has a dedicated team which provides advice and support in this area.  The team 
members regularly attend external H,S&E courses and internal reviews are performed on a regular 
basis to ensure compliance with best practice and all relevant legislation.
Employee Consultation
The Group consults employees through the National Company Council (NCC).  The NCC sits 
regularly during the year and is made up of representatives voted on the Council by employees.  An 
employee consultation policy is also in place.  Employees are encouraged to present their views 
and suggestions in respect of the Group’s performance and policies.  In addition, the Group has an 
intranet which facilitates faster and more effective communication.
An Employee Share Investment Trust is in place to allow employees a tax efficient way of investing 
in the Company. The Company purchases matching shares which become the property of the 
employee after a three year vesting period.
Financial Risk Management Objectives and Policies
The Group uses various financial instruments which include cash, equity investments, bank loans 
and items such as trade debtors and trade creditors that arise directly from its operations. The main 
purpose of these financial instruments is to raise finance for the Group’s operations. 
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk and interest 
rate risk. The directors review these risks on an ongoing basis. This policy has remained unchanged 
from previous years.
Credit Risk
The Group’s principal financial assets are cash and trade debtors. The credit risk associated with 
cash is limited as the counterparties have high credit ratings assigned by international credit-rating 
agencies. The principal credit risk arises therefore from its trade debtors. 
In order to manage credit risk, the management review the debt ageing on an ongoing basis, 
together with the collection history and third party credit references where appropriate.  Idox plc Annual Report and Accounts 2010 11
For the year ended 31 October 2010
Directors’ Report cont’d
Liquidity Risk
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet 
foreseeable needs and to invest cash assets safely and profitably.
Interest Rate Risk
Any funds over and above the current working capital requirements of the Group are invested in 
high interest deposit accounts. The Group’s bank borrowings bear interest at rates linked to the 
LIBOR.
Principal Risks and Uncertainties
The principal risks and uncertainties affecting the Group include the following:
Political – the Group has a large customer base in local government. A change in spending  >
priorities by the current or a future Government could materially impact the Group.  However this 
risk is mitigated due to the contractual nature of the recurring revenue in the Group.  
Economic – elements of the recruitment area of the business activity could be adversely affected  >
by a further slowdown in the economic environment.  However, in the event of an improvement 
in the economy, some recruitment revenue streams may improve. The software area of the 
business could be adversely affected if the government reduces the grants to local authorities in 
an economic downturn. The Group has increased diversification through acquisitions to mitigate 
against economic risks.
Competitors – the Group has certain competitors for its software products. To mitigate this risk,  >
the Group continues to invest in and develop its software.  Competitor risk is also mitigated 
through the long term nature of customer relationships and recurring software maintenance 
revenue.
  
Key performance indicators
Key financial performance indicators, including the management of profitability and working capital, 
monitored on an ongoing basis by management are set out below.
Indicator 2010 2009 Measure
Revenue (£000) 31,268 32,164
Profitability ratios
Gross margin 83% 77% Gross profit as a percentage of revenue 
EBITDA margin 28% 23% Profit before interest, tax, depreciation, 
amortisation, corporate finance costs, 
share option costs and impairments as a 
percentage of revenue
Other indicator
Debtors days 53 47 Year end trade debtors divided by turnover, 
multiplied by 365 days Idox plc Annual Report and Accounts 2010 12
For the year ended 31 October 2010
Directors’ Report cont’d
Non-financial indicators
Quality Management The Idox group operates a quality policy that has been accredited to ISO 
9001:2008 for the development and the sale of products for document, 
content and information management, providing innovative e-government 
and e-business solutions that allow the delivery of information to the citizen 
and customers across the internet, extranet or intranet.
Environmental Management The Idox group operates an environmental management system 
that has been assessed and approved to accredited BS EN ISO 
14001:2004, the approved systems applying to the following: the 
development and sale of products for document, content and 
information management, providing innovative e-government and 
e-business solutions that allow the delivery of information to citizen and 
customers across the internet, extranet or intranet.
Going Concern
The Directors have reviewed the Group’s budget and cash flows for 2011 in the context of the 
Group’s banking facilities and covenants, the level of recurring revenue within the business, the 
outlook for our chosen markets, and our current working capital resources, and are satisfied that it 
is appropriate to prepare accounts on a going concern basis. As a result of acquisitions during the 
year and the subsequent acquisition post year end, on 10 December 2010 the Group put in place a 
short term six million pound working capital facility. There are no events or conditions that may cast 
significant doubt about the ability of the Group to continue as a going concern. 
Post balance sheet events
The Group signed a short term working capital banking facility of £6m on 10 December 2010.
On 13 December 2010, the Group announced the acquisition of McLaren Software Group Limited 
for £1.0m in cash.  Full disclosure is provided in note 28.
 
Disclosure of Information to Auditors
In so far as each of the directors is aware:
there is no relevant audit information of which the company’s auditors are unaware; and >
the directors have taken all steps that they ought to have taken to make themselves aware of any  >
relevant audit information and to establish that the auditors are aware of that information.
Auditors
A resolution to reappoint Grant Thornton UK LLP as auditors and to authorise the Directors to agree 
their remuneration will be placed before the forthcoming Annual General Meeting of the Company.
By order of the Board     Registered office
Jane Mackie      2nd Floor, 
Company Secretary     160 Queen Victoria Street  
       London, EC4V 4BF Idox plc Annual Report and Accounts 2010 13
For the year ended 31 October 2010
Report on Remuneration
Remuneration Committee
The Remuneration Committee operates within defined terms of reference.  The Remuneration 
Committee comprises the Chairman and two Non-Executive Directors.  It is chaired by Christopher 
Wright.
Remuneration Policy
The policy of the Group is to set levels of remuneration to attract, retain and motivate Executive 
Directors and key staff.  The packages are designed to be competitive in value to those offered to 
the Directors of similar sized public companies in related sectors. It is the Board’s policy to align the 
interests of managers with those of our shareholders in the grant of option and other equity rewards 
which underlying securities grantees are very much encouraged to retain over the longer term.
The components of the Executive Directors’ remuneration packages are currently a basic salary, 
bonus, money purchase pension contributions and benefits in kind.  The benefits include car 
allowance, private medical cover, life cover and critical illness cover.  The bonus elements are 
dependent on the Executive Directors achieving performance criteria set out by the Remuneration 
Committee.  The criteria include targets for revenue and profits as well as for cash balances.  In 
addition, the Group operates share option schemes for the Executive Directors.  
Directors’ Remuneration (this information has been audited)
Basic 
salary 
and fees
 2010
Bonus
2010
Benefits 
in kind 
2010
Total
2010
Pension
2010
Basic 
salary 
and fees
 2009
Benefits 
in kind 
2009
Total
2009
Pension
2009
£000 £000 £000 £000 £000 £000 £000 £000 £000
Executive Directors
Martin Brooks 
1
100 50 1 151 - 100 1 101 -
Richard Kellett-Clarke 195 100 11 306 10 170 11 181 11
William Edmondson 129 35 10 174 6 130 9 139 4
Non Executive Directors
Christopher Wright 25 - - 25 - 25 - 25 -
Peter Lilley 25 - - 25 - 25 - 25 -
474 185 22 681 16 450 21 471 15
1 
Chairman
The amounts in respect of pension represent money purchase pension contributions.
Non-Executive Directors
The Board, based on a recommendation by the Chairman of the Remuneration Committee or, in 
the case of the Chairman, the remainder of the Board, determines the remuneration of the Non-
Executive Directors.  The Non-Executive Directors are not eligible to join the pension scheme.  
Service Contracts
The Executive Directors have entered into service contracts with the Group that are terminable by 
either party on not less than six months prior notice.
  Idox plc Annual Report and Accounts 2010 14
For the year ended 31 October 2010
Report on Remuneration cont’d
Share Options (this information has been audited)
The Directors believe it is important to incentivise key management and employees.  
The following options have been granted to the Directors over ordinary 1p shares in the Company:
Director
At start
of year
Granted 
during 
the year Exercised Lapsed
At end
of year
Exercise 
price
Exercise 
date
From
Exercise 
date
To
Richard Kellett-Clarke 2,250,000 - - - 2,250,000 6.50p Feb 2007 Oct 2011
Richard Kellett-Clarke 2,250,000 - - - 2,250,000 9p Feb 2007 Oct 2014
Richard Kellett-Clarke 275,000 - - - 275,000 15p Dec 2007 Dec 2017
Richard Kellett-Clarke 769,231 - - - 769,231 13p Aug 2008 Aug 2018
Richard Kellett-Clarke 666,667 - - - 666,667 15p Aug 2008 Aug 2018
Richard Kellett-Clarke - 2,439,024 - - 2,439,024 10.25p Mar 2010 Mar 2020
Martin Brooks 2,250,000 - - - 2,250,000 6.50p Feb 2007 Oct 2011
Martin Brooks 2,250,000 - - - 2,250,000 9p Feb 2007 Oct 2014
Martin Brooks 275,000 - - - 275,000 15p Dec 2007 Dec 2017
Martin Brooks 423,077 - - - 423,077 13p Aug 2008 Aug 2018
Martin Brooks 366,667 - - - 366,667 15p Aug 2008 Aug 2018
Martin Brooks - 975,610 - - 975,610 10.25p Mar 2010 Mar 2020
William Edmondson - 1,268,293 - - 1,268,293 10.25p Mar 2010 Mar 2020
Christopher Wright - 243,902 - - 243,902 10.25p Mar 2010 Mar 2020
Peter Lilley - 243,902 - - 243,902 10.25p Mar 2010 Mar 2020
Totals 11,775,642 5,170,731 - - 16,946,373
The mid market price of the Company’s shares at close of business on 31 October 2010 was 12.75p and the high and 
low share prices during the year were 12.75p and 9.88p respectively.
The Company recognised total expenses of  £185,000 (2009: £99,000) related to equity-settled share-based payment 
transactions during the year.
Directors’ Share Interests
The Directors’ shareholdings in the Company are listed in the Directors’ Report on page 9. Idox plc Annual Report and Accounts 2010 15
For the year ended 31 October 2010
Corporate Governance Report
Corporate Governance
The Group is committed to applying 
the highest principles of corporate 
governance commensurate with its 
size. The Group has adopted the 
Quoted Company Alliance (QCA) 
Corporate Governance Guidelines 
for AIM Companies as published in 
September 2010. The Group complies 
with the QCA Corporate Governance 
Guidelines except whereby:
 
the Board does not currently  >
undertake performance evaluation 
of the Board, its committees, and 
its individual directors.
the Board held 7 Board meetings  >
and 2 of each Committee meetings 
during the year.  All Directors 
attended each Board meeting. Two 
Directors attended each Committee 
meeting.
Internal Controls
The Board takes responsibility for 
establishing and maintaining reliable 
systems of control in all areas of 
operation. These systems of control, 
especially of financial control, can 
only provide reasonable, but not 
absolute, assurance against material 
misstatement or loss. 
The key matters relating to the system 
of internal control are set out below:
Idox plc has established an  >
operational management structure 
with clearly defined responsibilities 
and regular performance reviews
the Group operates a  >
comprehensive system for 
reporting financial and non-financial 
information to the Board including 
preparation and review of strategy 
plans and the preparation and 
review of annual budgets
financial results are monitored  >
against budgets, forecasts and 
other performance indicators with 
action dictated accordingly at each 
meeting
a structured approval process  >
based on assessment of risk and 
value delivered
sufficient resource is focused to  >
maintain and develop internal 
control procedures and information 
systems, especially in financial 
management.
The Board considers that there have 
been no substantial weaknesses 
in internal financial controls that 
have resulted in any material losses, 
contingencies or uncertainties which 
need to be disclosed in the accounts.
The Group supports an internal 
audit function that performs annual 
audits on its management systems.  
This function is supported by a 
management review of the audit 
findings.  Audits are currently carried 
out on the Group’s Quality and 
Environmental management systems.
Following publication of Internal 
Control: Guidance for Directors on 
the Combined Code (the “Turnbull 
Guidance”), the Board confirms 
that there is an ongoing process for 
identifying, evaluating and managing 
the significant risks faced by the 
Group, and that this process has 
been in place for the year under 
review and up to the date of approval 
of the Annual Report and Accounts. 
This process is regularly reviewed by 
the Board and is consistent with the 
Turnbull Guidance. 
Statement of Directors’ 
Responsibilities
The directors are responsible for 
preparing the Annual Report and the 
financial statements in accordance 
with applicable law and regulations.
Company law requires the directors 
to prepare financial statements for 
each financial year. Under that law 
the directors have to prepare the 
consolidated financial statements in 
accordance with International Financial 
Reporting Standards as adopted 
by the European Union (IFRSs). The 
directors have elected to prepare the 
company financial statements under 
UK Generally Accepted Accounting 
Practice (“UK GAAP”).  
The financial statements are required 
by law to give a true and fair view of 
the state of affairs of the group and 
parent company and of the profit or 
loss of the group for that period. In 
preparing these 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
state whether applicable IFRSs  >
have been followed, subject to any 
material departures disclosed and 
explained in the financial statements
prepare the financial statements on  >
the going concern basis unless it is 
inappropriate to presume that the 
company will continue in business.
The directors are responsible for 
keeping adequate accounting records 
that disclose with reasonable accuracy 
at any time the financial position of 
the Group and enable them to ensure 
that the financial statements comply 
with the Companies Act 2006.  They 
are also responsible for safeguarding  Idox plc Annual Report and Accounts 2010 16
For the year ended 31 October 2010
Corporate Governance Report cont’d
the assets of the Group and hence 
for taking reasonable steps for the 
prevention and detection of fraud and 
other irregularities.
The Directors are responsible for 
ensuring that the Directors’ Report 
and other information included in 
the Annual Report is prepared in 
accordance with United Kingdom 
company law. They are also 
responsible for ensuring that the 
Annual Report includes information 
required by the AIM Market Rules. 
The maintenance and integrity of the 
Group’s web site is the responsibility 
of the Directors; the work carried 
out by the auditors does not involve 
consideration of these matters and, 
accordingly, the auditors accept no 
responsibility for any changes that 
may have occurred to the information 
contained in the accounts since they 
were initially presented on the web 
site. 
Legislation in the United Kingdom 
governing the preparation and the 
dissemination of the accounts and 
other information included in annual 
reports may differ from legislation in 
other jurisdictions. 
Accounting Policies
The Board considers the 
appropriateness of its accounting 
policies on an annual basis. The Board 
believes that its accounting policies 
are appropriate in particular in relation 
to income recognition and research 
and development.
Board of Directors
The Board, comprising the Chairman, 
the Chief Executive Officer, the Chief 
Financial Officer and two Non-
Executive Directors, is responsible 
for the overall strategy and direction 
of Idox plc as well as for approving 
potential acquisitions, major capital 
expenditure items and financing 
matters. The Board has a formal 
schedule of business reserved to it 
and meets regularly during the year. 
The Board is supplied in a timely 
manner with information in a form 
and of a suitable quality appropriate 
to enable it to discharge its duties. 
Advice from independent sources 
is available if required. The Board 
monitors exposure to key business 
risks and reviews the strategic 
direction of the Group, the annual 
budgets as well as their progress 
against those budgets.
The Board members and their 
roles are described on page 8.  In 
accordance with the Company’s 
Articles of Association, one third of 
the Directors are required to retire 
by rotation at the Annual General 
Meeting.
Shareholder Relations
Idox plc is committed to open 
communication with all its 
shareholders. The Directors hold 
regular meetings with institutional 
shareholders to discuss and review 
the Group’s activities and objectives. 
Communication with private 
shareholders is principally through 
the Annual General Meeting, where 
participation is encouraged and where 
the Board is available to answer 
questions. Idox plc maintains up-
to-date information on the Investor 
Relations section of its website
www.Idoxplc.com.
Every shareholder has access to a 
full annual report each year end and 
an interim report at the half year end. 
Care is taken to ensure that any price 
sensitive information is released to all 
shareholders, institutional and private, 
at the same time in accordance 
with London Stock Exchange 
requirements. 
Idox plc strives to give a full, 
timely and realistic assessment 
of its business in a balanced way, 
in all price-sensitive reports and 
presentations. 
The Group has adopted the Quoted 
Company Alliance (QCA) suggested 
terms of reference for the various 
Board committees as set out by the 
QCA.
The Audit Committee
The Audit Committee is chaired by 
Peter Lilley and includes Christopher 
Wright. The Report of the Audit 
Committee can be found on page 17.
The Nomination Committee
The Nomination Committee is 
chaired by Peter Lilley and includes 
Christopher Wright. 
The Remuneration Committee
The Remuneration Committee is 
chaired by Christopher Wright and 
includes Peter Lilley.  This Committee 
determines the remuneration and 
benefits packages for the Executive 
Directors and any changes to the 
service contracts. The Committee also 
approves any share related incentive 
schemes within the Group.
Membership and Meetings
The Audit Committee is a committee 
of the Board and is comprised of two 
Non-Executive Directors: Peter Lilley 
and Christopher Wright.  
The Audit Committee invites the 
Executive Directors, the external 
auditors and other senior managers 
to attend its meetings as appropriate. 
The Company Secretary is also the 
Secretary of the Audit Committee.
The Audit Committee is considered 
to have sufficient, recent and relevant 
financial experience to discharge its 
functions.
During the period under review, the 
Audit Committee met three times. Idox plc Annual Report and Accounts 2010 17
For the year ended 31 October 2010
Report of the Audit Committee
Role, Responsibilities and Terms 
of Reference
The Audit Committee’s role is to assist 
the Board in the effective discharge 
of its responsibilities for financial 
reporting and internal control.
The Audit Committee’s responsibilities 
include:
to review the integrity of the annual  >
and interim financial statements of 
the Group ensuring they comply 
with legal requirements, accounting 
standards and AIM rules, and 
any other formal announcements 
relating to the Group’s financial 
performance 
to review the Group’s internal  >
financial control and risk 
management systems
monitor and review the requirement  >
for an internal audit function
to review the arrangements for  >
staff to whistle-blow on financial 
reporting and other matters
safeguard the auditor’s objectivity  >
and independence when non-audit 
services are provided
oversee the relationship with the  >
external auditor, including approval 
of their remuneration, agreeing the 
scope of the audit engagement, 
assessing their independence, 
monitoring the provision of non-
audit services, and considering their 
reports on the Group’s financial 
statements.
The Audit Committee operates within 
agreed terms of reference, which can 
be found on the Company’s website.
Independence of External Auditors
The Committee keeps under review 
the relationship with the external 
auditors including:
the independence and objectivity  >
of the external auditors, taking 
into account the relevant UK 
professional and regulatory 
requirements and the relationship 
with the auditor as a whole, 
including the provision of the non-
audit services
the consideration of audit fees and  >
any fees for non-audit services.
The Audit Committee develops and 
recommends to the Board the Group’s 
policy in relation to the provision of 
non-audit services by the auditors, 
and ensures that the provision of such 
services does not impair the external 
auditor independence.
              
Peter Lilley
Chairman of the Audit Committee
25 January 2011 Idox plc Annual Report and Accounts 2010 18
Report of the Independent Auditors to the 
members of Idox plc
Opinion on financial statements
In our opinion the group financial statements:
give a true and fair view of the state of the  >
group’s affairs as at 31 October 2010 and of 
its profit for the year then ended; 
have been properly prepared in accordance  >
with IFRS as adopted by the European Union; 
and
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 group financial statements are prepared is 
consistent with the group 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:
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.
Other matter
We have reported separately on the parent 
company financial statements of Idox plc for the 
year ended 31 October 2010.
Mark Cardiff
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
25 January 2011
We have audited the group financial statements 
of Idox plc for the year ended 31 October 2010 
which comprise the consolidated statement 
of comprehensive income, the consolidated 
balance sheet, the consolidated statement 
of changes in equity, the consolidated cash 
flow statement, and the related notes.  The 
financial reporting framework that has been 
applied in their preparation is applicable law 
and International Financial Reporting Standards 
(IFRSs) as adopted by the European Union.
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 
auditors
As explained more fully in the Directors’ 
Responsibilities Statement, the directors are 
responsible for the preparation of the group 
financial statements and for being satisfied that 
they give a true and fair view. Our responsibility 
is to audit the group financial statements in 
accordance with applicable law and International 
Standards on Auditing (UK and Ireland). Those 
standards require us to comply with the Auditing 
Practices Board’s (APB’s) Ethical Standards for 
Auditors.
Scope of the audit of the financial 
statements
A description of the scope of an audit of financial 
statements is provided on the APB’s website at 
www.frc.org.uk/apb/scope/UKNP . Idox plc Annual Report and Accounts 2010 19
For the year ended 31 October 2010
Consolidated Statement of
Comprehensive Income
Note 2010 2009
£000 £000
Revenue 2 31,268 32,164
External charges (5,290) (7,283)
Gross margin 25,978 24,881
Staff costs 4 (14,170) (14,026)
Other operating charges (3,091) (3,376)
Earnings before goodwill impairment, amortisation, 
depreciation, restructuring, corporate finance and 
share option costs 8,717 7,479
Depreciation 10 (403) (372)
Amortisation 11 (2,260) (1,112)
Goodwill impairment charge 11 - (533)
Restructuring costs 4 (187) (427)
Corporate finance costs 5 (438) -
Share option costs (185) (99)
Operating profit 3 5,244 4,936
Finance income 15 125
Finance costs (316) (582)
Profit before taxation 4,943 4,479
Income tax expense 8 (1,305) (1,020)
Profit for the year 3,638 3,459
Other comprehensive income for the year
Available-for-sale financial assets
- current year gain 35 -
Other comprehensive income for the year, net of tax 35 -
Total comprehensive income for the year attributable 
to owners of the parent 3,673 3,459
Earnings per share
Basic 9 1.07p 1.01p
Diluted 9 1.05p 1.00p
The accompanying accounting policies and notes form an integral part of these financial statements. Idox plc Annual Report and Accounts 2010 20
At 31 October 2010
Consolidated Balance Sheet
Note 2010 2009
£000 £000
ASSETS
Non-current assets
Property, plant and equipment 10 504 757
Intangible assets 11 44,629 32,608
Other long-term financial assets 13 855 -
Deferred tax assets 20 283 315
Total non-current assets 46,271 33,680
Current assets
Trade and other receivables 15 5,915 6,462
Cash and cash equivalents 14 2,004 6,947
Total current assets 7,919 13,409
Total assets 54,190 47,089
LIABILITIES
Current liabilities
Trade and other payables 16 2,784 3,171
Other liabilities 17 11,794 8,138
Provisions 18 133 138
Current tax 1,052 187
Borrowings 19 1,000 1,000
Total current liabilities 16,763 12,634
Non-current liabilities
Deferred tax liabilities 20 4,549 3,501
Borrowings 19 1,866 2,781
Total non-current liabilities 6,415 6,282
Total liabilities 23,178 18,916
Net assets 31,012 28,173 Idox plc Annual Report and Accounts 2010 21
At 31 October 2010
Consolidated Balance Sheet cont’d
Note 2010 2009
£000 £000
EQUITY
Called up share capital 22 3,442 3,442
Capital redemption reserve 1,112 1,112
Share premium account 9,903 9,903
Treasury reserve (455) (212)
Share options reserve 630 454
Merger reserve 1,294 1,294
ESOP trust (93) (88)
Retained earnings 15,179 12,268
Total equity 31,012 28,173
The financial statements were approved by the Board of Directors and authorised for issue on 25 January 2011 and are 
signed on its behalf by:
William Edmondson         Richard Kellett-Clarke
Chief Financial Officer            Chief Executive Officer  
The accompanying accounting policies and notes form an integral part of these financial statements.
Company name: Idox plc   Company number: 03984070 Idox plc Annual Report and Accounts 2010 22
For the year ended 31 October 2010
Consolidated Statement of Changes in Equity
Called 
up share 
capital
Capital 
redemption 
reserve
Share
premium
account
Treasury 
reserve
Share
options 
reserve
Merger 
reserve
ESOP
Trust
Retained 
earnings
Total
£000 £000 £000 £000 £000 £000 £000 £000 £000
The group
At 1 November 2008 3,442 1,112 9,883 - 364 1,294 (96) 9,447 25,446
Deferred tax on share based 
payments - - - - - - - 25 25
Issue of share capital - - 20 3 - - - - 23
Transfer on exercise of share 
options - - - - (9) - - 9 -
Purchase of treasury shares - - - (207) - - - - (207)
Share options granted - - - - 59 - - - 59
Share repurchase - - - (8) - - - - (8)
Total recognised income 
and expense for the year
- - - - - - - 3,459 3,459
Share options reserve - - - - 40 - - - 40
Equity dividends paid - - - - - - - (672) (672)
ESOP trust - - - - - - 8 - 8
Transactions with owners - - 20 (212) 90 - 8 (638) (732)
Profit for the period - - - - - - - 3,459 3,459
Total comprehensive 
income for the period - - - - - - - 3,459 3,459
At 31 October 2009 3,442 1,112 9,903 (212) 454 1,294 (88) 12,268 28,173
Deferred tax on share based 
payments - - - - - - - - -
Transfer on exercise of share 
options
- - - - (9) - - (5) (14)
Purchase of treasury shares - - - (249) - - - - (249)
Share options granted - - - - 185 - - - 185
Share repurchase - - - 6 - - - - 6
Equity dividends paid - - - - - - - (757) (757)
ESOP trust - - - - - - (5) - (5)
Transactions with owners - - - (243) 176 - (5) (762) (834)
Profit for the period - - - - - - - 3,638 3,638 Idox plc Annual Report and Accounts 2010 23
For the year ended 31 October 2010
Consolidated Statement of Changes in Equity 
cont’d
Called 
up share 
capital
Capital
redemption 
reserve
Share
premium
account
Treasury 
reserve
Share
options 
reserve
Merger 
reserve
ESOP
Trust
Retained 
earnings
Total
£000 £000 £000 £000 £000 £000 £000 £000 £000
Other comprehensive 
income
Fair value gain on invest-
ment - - - - - - - 35 35
Total comprehensive 
income for the period - - - - - - - 3,673 3,673
At 31 October 2010 3,442 1,112 9,903 (455) 630 1,294 (93) 15,179 31,012
The accompanying accounting policies and notes form an integral part of these financial statements. Idox plc Annual Report and Accounts 2010 24
For the year ended 31 October 2010
Consolidated Cash Flow Statement
2010 2009
£000 £000
Cash flows from operating activities 
Profit for the period before taxation 4,943 4,479
Adjustments for:
Depreciation 403 372
Amortisation 2,260 1,112
Goodwill impairment - 533
Loss on disposal of property, plant and equipment 160 -
Finance income (15) (125)
Finance costs 189 497
Debt issue costs amortisation 85 85
Share option costs 185 99
Exchange losses 8 27
Movement in receivables 1,055 1,955
Movement in payables (563) (1,541)
Cash generated by operations 8,710 7,493
Tax on profit paid (1,009) (2,152)
Net cash from operating activities 7,701 5,341
Cash flows from investing activities
Acquisition of subsidiary net of cash acquired (5,543) (795)
Purchase of listed investment (820) -
Purchase of property, plant and equipment (613) (595)
Purchase of intangible assets (3,470) (464)
Finance income 15 125
Net cash used in investing activities (10,431) (1,729)
Cash flows from financing activities
Proceeds from issue of share capital - 20
Interest paid (189) (353)
Other loan related costs - (144)
Loan repayments (1,000) (3,000)
Equity dividends paid (757) (672)
Purchase of own shares (267) (204)
Net cash flows from financing activities (2,213) (4,353)
Net movement on cash and cash equivalents (4,943) (741)
Cash and cash equivalents at the beginning of the period 6,947 7,688
Cash and cash equivalents at the end of the period 2,004 6,947
The accompanying accounting policies and notes form an integral part of these financial statements. Idox plc Annual Report and Accounts 2010 25
For the year ended 31 October 2010
Notes to the Accounts
(non-derivative) equity instruments.  This 
amendment applies for periods commencing 
on or after 1 February 2010.
Amendments to IFRS 2 – Group cash- >
settled share based payment transactions.  
The amendment clarifies that an entity that 
receives goods or services from its suppliers 
(including employees) must apply IFRS 2 even 
where the obligation to make the required 
share-based cash payment lies with another 
group entity.  This amendment is effective 
from 1 January 2010.  
IAS 24 (Revised 2009) “Related Party  >
Disclosures” - effective 1 January 2011. The 
revised standard modifies the definition of 
related parties.
The directors anticipate that the adoption of 
these Standards and Interpretations will have no 
marked impact on the financial statements when 
they come into effect.
Adoption of new and revised standards
The following new standards and amendments 
to standards have been adopted by the Group 
during the year.
IAS 1 Revised ‘Presentation of financial 
statements’.  The revised standard prohibits the 
presentation of items of income and expenses 
(that is ‘non-owner changes in equity’) in the 
statement of changes in equity, requiring non-
owner changes in equity to be presented 
separately from owner changes in equity.  All 
non-owner changes in equity are required to 
be shown in a performance statement.  It also 
requires that where a balance sheet is restated 
that the opening balance sheet is also disclosed.  
There has been no restatement of the balance 
sheet and therefore an opening balance sheet 
has not been disclosed.
IFRS 2 (amendment) ‘Share-based payment’.  
This revision of an existing standard deals with 
vesting conditions and cancellations.  It clarifies 
that vesting conditions are service conditions 
and performance conditions only.  Other features 
of a share-based payment are not vesting 
conditions.  This has resulted in no change 
to the share-based payments charge for the 
period.
1 ACCOUNTING POLICIES
General Information
Idox plc is a leading supplier of software 
and services for the management of local 
government and other organisations. The 
company is a public limited company which 
is listed on the London Alternative Investment 
Market and is incorporated and domiciled in the 
UK. The address of its registered office is 160 
Queen Victoria Street, London. The registered 
number of the company is 03984070.
The financial statements are prepared in pound 
sterling.
Basis of preparation
These financial statements have been prepared 
in accordance with International Financial 
Reporting Standards (IFRS) as adopted by the 
European Union (EU) and the Companies Act 
2006 applicable to companies reporting under 
IFRS.  
The financial statements have been prepared 
under the historical cost convention as modified 
by the revaluation of certain financial assets and 
liabilities, being available for sale investments.
As set out on page 12 of the Directors’ Report, 
the financial statements have been prepared on 
a going concern basis.
International Financial Reporting Standards 
and Interpretations issued but not yet 
effective
At the date of authorisation of these 
financial statements, certain new standards, 
amendments and interpretations to existing 
standards have been published that are 
mandatory for forthcoming financial periods, but 
which the Group has not adopted early.  Those 
which are considered relevant to the Group’s 
operations are as follows:
IAS 32 Amendment: Classification of Rights  >
Issues.  The Amendment alters IAS 32 so that 
rights, options or warrants to acquire a fixed 
number of the entity’s own equity instruments 
for a fixed amount of any currency are equity 
instruments if the entity offers the rights, 
options or warrants pro rata to all of its 
existing owners of the same class of its own  Idox plc Annual Report and Accounts 2010 26
For the year ended 31 October 2010
Notes to the Accounts cont’d
Amendment to IFRS 7, ‘Financial instruments; 
Disclosures’ – The amendment increases 
the disclosure requirements about fair value 
measurement and reinforces existing principles 
for disclosure about liquidity risk.  The 
amendment introduces a three-level hierarchy 
for fair value measurement disclosure and 
requires some specific quantitative disclosures 
for financial instruments in the lowest level of the 
hierarchy.  In addition, the amendment clarifies 
and enhances existing requirements for the 
disclosure of liquidity risk primarily requiring a 
separate liquidity risk analysis for derivative and 
non-derivative financial liabilities.  This has not 
resulted in any changes to the disclosures in 
these financial statements.
IFRS 3 R, ‘Business combinations’– The revised 
standard requires that all acquisition related 
costs are to be expensed in the period incurred 
rather than added to the cost of the investment, 
that changes to contingent consideration 
following a business combination are shown in 
the statement of comprehensive income rather 
than changing goodwill, and that changes 
to deferred tax assets relating to business 
combinations are only reflected within goodwill 
if they occur within the measurement period. 
Furthermore, purchase accounting only applies 
at the point when control is achieved. The 
Group has applied IFRS 3 R prospectively to all 
business combinations from 1 November 2009. 
Where a business combination and the related 
assets and liabilities arising were acquired before 
1 November 2009 they are not adjusted by IFRS 
3 R and as a result comparatives for 2009 have 
not been restated. 
IAS 27 R, ‘Consolidated and Separate Financial 
Statements’, the revised standard requires that 
acquisitions and disposals that do not result in 
a change of control are accounted for within 
equity. Any difference between the change in 
the non-controlling interest and the fair value of 
the consideration paid or received is recognised 
directly in equity and attributed to the owners of 
the parent and does not generate goodwill. 
Improvements to IFRS issued May 2010 – part 
effective 1 July 2010, other parts effective 1 
January 2011. 
Critical accounting estimates and 
judgements
Estimates and judgements are continually 
evaluated and are based on historical experience 
and other factors, including expectations of 
future events that are believed to be reasonable 
under the circumstances.
The Group makes estimates and assumptions 
concerning the future.  The resulting accounting 
estimates and assumptions will, by definition, 
seldom equal the related actual results.  The 
Group has evaluated the estimates and 
assumptions that have been made in relation to 
the carrying amounts of assets and liabilities in 
these financial statements.  The estimates and 
assumptions which have the most significant 
impact on the financial statements which are 
recognised in the financial statements are as 
follows:
(i) Intangible assets 
The Group recognises intangible assets acquired 
as part of business combinations at fair value 
at the date of acquisition.  The determination of 
these fair values is based upon management’s 
judgement and includes assumptions on the 
timing and amount of future incremental cash 
flows generated by the assets and selection of 
an appropriate cost of capital.  Furthermore, 
management must estimate the expected 
useful lives of intangible assets and charge 
amortisation on those assets accordingly.  In 
determining the useful economic life of the 
intangible software assets, management has 
given consideration to the length of time that its 
own software is typically used within its market.  
In addition, management reviewed competitor 
products and the length of time they had also 
been in use.
Consideration was also given as to the likelihood 
that a new competitor could enter the market 
with a new product.  This was considered 
unlikely due to the up-front capital investment 
which would be required to develop a new 
product, the requirement for reference sites to 
demonstrate the product, and the long life cycles 
which products have in the market. For details 
on the estimates made in relation to intangible 
assets, see note 11. Idox plc Annual Report and Accounts 2010 27
For the year ended 31 October 2010
Notes to the Accounts cont’d
considered to be 1 March 2010, the date the 
sale and purchase agreement was signed and 
the date the risk and rewards of the contracts 
transferred and control passed to the Group.
This acquisition does not fall under IFRS3 
revised as it was the acquisition of an asset or 
a group of assets which does not constitute a 
business under the definition.
Basis of consolidation
The Group accounts consolidate the accounts 
of the Company and its subsidiary undertakings 
drawn up to 31 October each year.  Subsidiaries 
are those entities over which the Group has the 
power to control the financial and operating 
policies.  Over all its subsidiaries, Idox plc 
obtains and exercises control through 100% of 
the voting rights.
The Group elected not to apply IFRS 3 Business 
Combinations retrospectively to business 
combinations prior to 1 November 2006.  
Accordingly the classification of the combination 
(acquisition, reverse acquisition or merger) 
remains unchanged from that used under UK 
GAAP .  
Assets and liabilities are recognised at the date 
of transition if they would be recognised under 
IFRS, and are measured using their UK GAAP 
carrying amount immediately post-acquisition as 
deemed cost under IFRS, unless IFRS requires 
fair value measurement.  Deferred tax is adjusted 
for the impact of any consequential adjustments 
after taking advantage of the transitional 
provisions.
All inter-company transactions are eliminated on 
consolidation. 
For business combinations occurring since 
1 November 2009, the requirements of IFRS 
3R have been applied.  The consideration 
transferred by the Group to obtain control of 
a subsidiary is calculated as the sum of the 
acquisition date fair values of assets transferred, 
liabilities incurred and the equity interests issued 
by the Group, which includes the fair value of 
any asset of liability arising from a contingent 
(ii) Development costs
The Group reviews half yearly whether the 
recognition requirements for development 
costs have been met.  This is necessary 
as the economic success of any product 
development is uncertain and may be subject 
to future technical problems at the time of 
recognition.  Judgements are based on the 
information available at each balance sheet 
date.  In addition, all internal activities related to 
the research and development of new software 
products are continuously monitored by the 
directors. See note 11 for further information.
(iii) Impairment of goodwill
The Group is required to test, as least annually, 
whether goodwill has suffered any impairment.  
The recoverable amount is determined based 
upon value-in-use and net realisable value 
calculations.  The value-in-use method requires 
the estimation of future cash flows and the 
choice of a suitable discount rate in order to 
calculate the present value of these cash flows. 
Pre-tax discount rates have been applied and 
are based on WACC calculations.   See note 11 
for further commentary.  
(iv) Revenue recognition
The group recognises revenue on certain 
contracts such as work in progress, prior 
to an invoice being raised, where work has 
been completed and there is a high degree 
of certainty of the contract being completed 
and the invoice raised and cash received. See 
paragraph headed ‘Revenue’ below for more 
detail on how the Group accounts for revenue. 
(v) Dilapidations
Dilapidation provisions are management’s best 
estimates based on actual costs incurred in 
existing or similar properties. See note 18 for 
details of the amounts included in the balance 
sheet at the year end.
(vi) Business combination assessment
On 1 March 2010 the group acquired eleven 
long term managed service contracts from 
MacDonald, Detwiller and Associates Limited.  
Consideration of £2.9m was paid on 24 
September 2010.  The date of acquisition is  Idox plc Annual Report and Accounts 2010 28
For the year ended 31 October 2010
Notes to the Accounts cont’d
consideration arrangement.  Acquisition costs 
are expensed as incurred. 
 
Revenue
Revenue represents the amounts receivable in 
respect of goods and services provided during 
the year, stated net of value added tax.  Where 
work has been done, but a billing milestone has 
not been reached, the income has been accrued 
and included in amounts recoverable within 
trade and other receivables. 
Revenue is measured at the fair value of the right 
to consideration. The Group derives its revenue 
streams from software solutions, information 
solutions and recruitment services.  
Idox Software products’ revenue is recognised 
in stages based on contract signing, delivery, 
configuration and client acceptance. For 
small value orders, the whole invoice amount 
is recognised at the billing point. For larger 
value orders, revenue is reviewed to see if 
the appropriate amount of work has been 
completed. For the largest orders, the amount 
of revenue recognised is dependent on the 
percentage of completion of the Group’s 
contractual obligations. The revenues for 
maintenance and managed service contracts are 
spread over the period of the agreement, which 
is typically one year.  
Revenue derived from information solutions 
content is recognised over the life of the 
subscription, which is typically one year.  
Revenue from projects is recognised over the life 
of the project in accordance with the stage of 
completion.  Revenue from information solutions 
based managed services is recognised on a 
usage basis as the service is performed.
Recruitment revenue from permanent 
placements is recognised in the month when 
the placement starts.  Revenue from contract 
recruitment is recognised as the service is 
performed.
Contract revenue
The amount of profit attributable to the stage of 
completion of a long term contract is recognised 
only when the outcome of the contract can be 
foreseen with reasonable certainty. Revenue for 
such contracts is stated at the cost appropriate 
to their stage of completion plus attributable 
profits, less amounts recognised in previous 
years. Provision is made for any losses as they 
are foreseen.
Amounts recoverable on contracts are included 
in trade and other receivables and represent 
revenue recognised in excess of payments on 
account.
Segmental reporting
Operating segments are reported in a manner 
consistent with the internal reporting provided 
to the chief operating decision-maker.  The chief 
operating decision-maker has been identified as 
the steering committee, which comprises the 
Chief Executive Officer and the Chief Financial 
Officer, that makes strategic decisions.  Given 
a segmental balance sheet is no longer used 
for internal reporting purposes, this is no longer 
shown.
Goodwill
Goodwill is stated after separate recognition of 
identifiable intangible assets.  It is calculated 
as the excess of the sum of a) fair value of 
consideration transferred, b) the recognised 
amount of any non-controlling interest in the 
acquiree and c) acquisition-date fair value of 
any existing equity interest in the acquiree, over 
the acquisition-date fair values of identifiable net 
assets.  If the fair values of the identifiable net 
assets exceed the sum calculated above, the 
excess amount (i.e. gain on a bargain purchase) 
is recognised in profit or loss immediately.
Cash-generating units to which goodwill has 
been allocated are tested for impairment at 
least annually.  All other individual assets or 
cash-generating units are tested for impairment 
whenever events or changes in circumstances 
indicate that the carrying amount may not be 
recoverable. Idox plc Annual Report and Accounts 2010 29
For the year ended 31 October 2010
Notes to the Accounts cont’d
Goodwill is carried at cost less accumulated 
impairment losses.  Negative goodwill is 
recognised immediately after acquisition in 
the statement of comprehensive income.  
Unallocated goodwill on acquisitions relates 
mainly to workforce valuation, synergies and 
economies of scale obtained on combining 
acquisitions with existing operations.
Goodwill written off to reserves prior to the 
date of transition to IFRS remains in reserves.  
There is no re-instatement of goodwill that was 
amortised prior to transition to IFRS.  Goodwill 
previously written off to reserves is not written 
back to profit or loss on subsequent disposal.  
Other intangible assets
Intangible assets with a finite useful life are 
amortised to the consolidated statement of 
comprehensive income on a straight-line basis 
over their estimated useful lives, which are 
reviewed on an annual basis.  Amortisation 
commences when the asset is available for 
use.  The residual values of intangible assets are 
assumed to be zero.
 
(i) Research and development
Expenditure on research (or the research 
phase of an internal project) is recognised as 
an expense in the period in which it is incurred.  
Development costs incurred are capitalised 
when all the following conditions are satisfied:
completion of the intangible asset is  >
technically feasible so that it will be available 
for use or sale
the group intends to complete the intangible  >
asset and use or sell it
the group has the ability to use or sell the  >
intangible asset
the intangible asset will generate probable  >
future economic benefits.  Among other 
things, this requires that there is a market for 
the output from the intangible asset or for the 
intangible asset itself, or, if it is to be used 
internally, the asset will be used in generating 
such benefits
there are adequate technical, financial and  >
other resources to complete the development 
and to use or sell the intangible asset, and
the expenditure attributable to the intangible  >
asset during its development can be 
measured reliably.
Development costs not meeting the criteria 
for capitalisation are expensed as incurred.  
The cost of an internally generated intangible 
asset comprises all directly attributable costs 
necessary to create, produce, and prepare 
the asset to be capable of operating in the 
manner intended by management.  Amortisation 
commences upon completion of the asset, 
and is shown separately on the statement of 
comprehensive income.
Careful judgement by the directors is applied 
when deciding whether the recognition 
requirements for development costs have been 
met.  This is necessary as the economic success 
of any product development is uncertain and 
may be subject to future technical problems at 
the time of recognition.  Judgements are based 
on the information available at each balance 
sheet date.  In addition, all internal activities 
related to the research and development of new 
software products are continuously monitored by 
the directors.
Amortisation is calculated using the straight line 
method over a period of 5 years.
(ii) Customer relationships
Customer relationships represent the purchase 
price of customer lists and contractual 
relationships purchased on the acquisition of 
CAPS Solutions Limited, Plantech Limited, j4b 
Software & Publishing Limited, Strand Electoral 
Management Services Limited and GRANTfinder 
Limited.  These relationships are carried at cost 
less accumulated amortisation and accumulated 
impairment losses.  Amortisation is calculated 
using the straight line method over a period of 
20, 10 and 5 years. Idox plc Annual Report and Accounts 2010 30
For the year ended 31 October 2010
Notes to the Accounts cont’d
(iii) Trade names
Trade names represent the named intangible 
asset recognised on the acquisition of CAPS 
Solutions Limited, Plantech Limited, j4b 
Software & Publishing Limited, Strand Electoral 
Management Services Limited and GRANTfinder 
Limited.  These trade names are carried at cost 
less accumulated amortisation and accumulated 
impairment losses.  Amortisation is calculated 
using the straight line method over a period of 
20 and 10 years.
(iv) Software
Software represents the Uniform, Acolaid and 
electoral software purchased on the acquisition 
of CAPS Solutions Limited, Plantech Limited 
and Strand Electoral Management Services 
Limited.  The software is carried at cost less 
accumulated amortisation and accumulated 
impairment losses.  Amortisation is calculated 
using the straight line method over a period of 5 
and 10 years.  Software also includes software 
licences purchased which are amortised using 
the straight line method over a period of 3 years. 
(v) Database
Database represents the grant information 
database purchased on the acquisition of j4b 
Software & Publishing Limited and GRANTfinder 
Limited.  The database is carried at fair value 
less accumulated amortisation and accumulated 
impairment losses.  Amortisation is calculated 
using the straight line method over a period of 5 
years.  
(vi) Order backlog
Order backlog represents the managed service 
contracts and subscription deferred revenue 
purchased on the acquisition of 11 land and 
property information solution contracts and 
GRANTfinder Limited. Amortisation on the 
managed service deferred revenue is calculated 
based on the weighting and length of each 
contract purchased.  Subscription deferred 
revenue is calculated using the straight line 
method over a period of 5 years.
Impairment
For the purposes of assessing impairment, 
assets are grouped at the lowest levels for which 
there are separately identifiable cash flows (cash-
generating units).  As a result, some assets are 
tested individually for impairment and some are 
tested at cash-generating unit level.  Goodwill is 
allocated to those cash-generating units that are 
expected to benefit from synergies of the related 
business combination and represent the lowest 
level within the group at which management 
monitors the related cash flows.
Goodwill, other individual assets or cash-
generating units that include goodwill, other 
intangible assets with an indefinite useful life, 
and those intangible assets not yet available for 
use are tested for impairment at least annually.  
All other individual assets or cash-generating 
units are tested for impairment whenever events 
or changes in circumstances indicate that the 
carrying amount may not be recoverable.
An impairment loss is recognised for the amount 
by which the asset’s or cash-generating unit’s 
carrying amount exceeds its recoverable 
amount.  The recoverable amount is the higher 
of fair value, reflecting market conditions 
less costs to sell, and value in use based on 
an internal discounted cash flow evaluation.  
Impairment losses recognised for cash-
generating units, to which goodwill has been 
allocated, are credited initially to the carrying 
amount of goodwill.  Any remaining impairment 
loss is charged pro rata to the other assets in 
the cash generating unit.  With the exception of 
goodwill, all assets are subsequently reassessed 
for indications that an impairment loss previously 
recognised may no longer exist.
  Idox plc Annual Report and Accounts 2010 31
For the year ended 31 October 2010
Notes to the Accounts cont’d
Property, plant and equipment
Items of property, plant and equipment are 
stated at cost less accumulated depreciation.
Depreciation is charged to the income 
statement using the following rates and bases 
so as to write off the cost or valuation of 
items of property, plant and equipment over 
their expected useful lives.  The rates that are 
generally applicable are:
Computer 
hardware
50% and 100% straight line
Fixtures, fittings 
and equipment
25% straight line
Library books 
and journals
33 1/3% straight line
Useful economic lives and residual values are 
reviewed annually.
Employee benefits
Defined contribution pension plans
Contributions paid to private pension plans of 
certain employees are charged to the income 
statement in the period in which they become 
payable. Contributions paid to the group 
personal pension plans of employees are 
charged to the income statement in the period in 
which they become payable.
Share-based payment transactions
All share-based payment arrangements granted 
after 7 November 2002 that had not vested 
prior to 1 November 2006 are recognised in the 
financial statements.
All goods and services received in exchange 
for the grant of any share-based payment are 
measured at their fair values.  Where employees 
are rewarded using share-based payments, 
the fair values of employees’ services are 
determined indirectly by reference to the fair 
value of the instrument granted to the employee.  
This fair value is appraised at the grant date 
and excludes the impact of non-market vesting 
conditions (for example, profitability and sales 
growth targets).
All equity-settled share-based payments are 
ultimately recognised as an expense in the 
income statement with a corresponding credit to 
the share option reserve.
If vesting periods or other non-market vesting 
conditions apply, the expense is allocated 
over the vesting period, based on the best 
available estimate of the number of share 
options expected to vest.  Estimates are revised 
subsequently if there is any indication that the 
number of share options expected to vest 
differs from previous estimates.  Any cumulative 
adjustment prior to vesting is recognised in the 
current period.  No adjustment is made to any 
expense recognised in prior periods if share 
options that have vested are not exercised.
Upon exercise of share options, the proceeds 
received net of attributable transaction costs are 
credited to share capital, and where appropriate 
share premium.
Reserves
Equity comprises the following:
“Share premium” represents the excess over  >
nominal value of the fair value of consideration 
received for equity shares, net of expenses of 
the share issue.
“Capital redemption reserve” represents when  >
the entire deferred ordinary share capital was 
bought in exchange for one ordinary 1p share. 
“Merger reserve” which arose as a result of  >
a group reconstruction that occurred in 17 
November 2000.  This represents the issued 
share capital and share premium account in 
the Company’s subsidiary undertaking, Idox 
Software Limited.  
“Share options reserve” represents shares to  >
be issued on potential exercise of those share 
options that have been accounted for under 
“IFRS 2 Share Based Payments”.
“ESOP trust” represents share capital  >
purchased to satisfy the liability of the  Idox plc Annual Report and Accounts 2010 32
For the year ended 31 October 2010
Notes to the Accounts cont’d 
employee share scheme. Purchased shares 
are classified within the ESOP trust reserve 
and presented as a deduction from total 
equity.
“Retained earnings” represents retained  >
profits.
“Treasury reserve’ represents shares  >
repurchased by the company to be held for 
redistribution as share options.
Taxation
Tax on the profit or loss for the year comprises 
current and deferred tax.  Current tax is charged 
to the statement of comprehensive income 
except to where it relates to tax on items 
recognised directly in equity, in which case it is 
charged to equity.
Current tax is the tax currently payable based on 
taxable profit for the year.  
Deferred income taxes are calculated using 
the liability method on temporary differences.  
Deferred tax is generally provided on the 
difference between the carrying amounts 
of assets and liabilities and their tax bases.  
However, deferred tax is not provided on the 
initial recognition of goodwill, nor on the initial 
recognition of an asset or liability unless the 
related transaction is a business combination or 
affects tax or accounting profit.  Deferred tax on 
temporary differences associated with shares in 
subsidiaries is not provided if reversal of these 
temporary differences can be controlled by the 
group and it is probable that reversal will not 
occur in the foreseeable future.  In addition, tax 
losses available to be carried forward as well as 
other income credits to the group are assessed 
for recognition as deferred tax assets.
Deferred tax liabilities are provided in full, 
with no discounting.  Deferred tax assets are 
recognised to the extent that it is probable that 
the underlying deductible temporary differences 
will be able to be offset against future taxable 
income.  Current and deferred tax assets and 
liabilities are calculated at tax rates that are 
expected to apply to their respective period 
of realisation, provided they are enacted or 
substantively enacted at the balance sheet date.
Changes in deferred tax assets or liabilities are 
recognised as a component of tax expense in 
the statement of comprehensive income, except 
where they relate to items that are charged or 
credited directly to equity in which case the 
related deferred tax is also charged or credited 
directly to equity.
Operating leases
Leases where the lessor retains substantially all 
the risks and rewards of ownership are classified 
as operating leases.  All leases are operating in 
nature.  Amounts paid under operating leases 
are charged to the statement of comprehensive 
income on a straight line basis over the lease 
term.  
Dividend distributions
Interim dividends in respect of equity shares 
are recognised in the financial statements in the 
period in which they are paid.
Final dividends in respect of equity shares are 
recognised in the financial statements in the 
period that the dividends are formally approved.
Foreign currency translation
The functional and presentation currency of 
Idox plc and its United Kingdom subsidiaries 
is the pound sterling (£).  Transactions in 
foreign currencies are initially recorded at the 
functional currency rate ruling at the date 
of the transaction.  Monetary assets and 
liabilities denominated in foreign currencies 
are retranslated at the functional currency rate 
of exchange ruling at the balance sheet date.  
All differences are taken to the consolidated 
statement of comprehensive income.
Capital policy
The Group’s objectives when managing 
capital are to safeguard the Group’s ability to 
continue as a going concern in order to provide 
returns for shareholders and benefits for other 
stakeholders and to maintain a capital structure 
that optimises the cost of capital.  In order to  Idox plc Annual Report and Accounts 2010 33
For the year ended 31 October 2010
Notes to the Accounts cont’d
maintain or adjust the capital structure, the 
Group may adjust the amount of dividends paid 
to shareholders, return capital to shareholders or 
issue new shares. 
Financial instruments
Financial assets and financial liabilities are 
recognised on the Group’s balance sheet when 
the Group has become a party to the contractual 
provisions of the instrument.
Financial assets
Trade and other receivables
Trade receivables do not carry any interest and 
are initially stated at their fair value, as reduced 
by appropriate allowances for estimated 
irrecoverable amounts.  All receivables are 
considered for impairment.  Provision against 
trade receivables is made when there is 
objective evidence that the group will not be 
able to collect all amounts due in accordance 
with the original terms of those receivables.  The 
amount of the write-down is determined as the 
difference between the assets carrying value and 
the present value of estimated future cash flows.
Cash and cash equivalents
Cash and cash equivalents comprise cash on 
hand and on deposit and are subject to an 
insignificant risk of changes in value.  
Investments
Investments consist of available-for-sale 
investments in equity instruments which are 
measured at market prices.  Movements 
in market value are recognised through the 
consolidated statement of comprehensive 
income.
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 contact that evidences 
a residual interest in the assets of the group after 
deducting all of its financial liabilities.
Bank borrowings
Interest-bearing bank loans and overdrafts 
are recorded initially at fair value, net of direct 
transaction costs.  Such instruments are 
subsequently carried at their amortised cost and 
finance charges, including premiums payable on 
settlement or redemption, are recognised in the 
income statement over the term of the instrument 
using an effective rate of interest.
Trade and other payables
Trade and other payables are not interest 
bearing, are initially stated at their fair value and 
subsequently at amortised cost.
Equity instruments
Equity instruments issued by the company are 
recorded at the proceeds received, net of direct 
issue costs. Idox plc Annual Report and Accounts 2010 34
For the year ended 31 October 2010
Notes to the Accounts cont’d
 2 SEGMENTAL ANALYSIS
As at 31 October 2010, the Group is primarily organised into three main business segments, which are detailed below.
Financial information is reported to the Board on a business unit basis with revenue and operating profits split by 
business unit.  Each business unit is deemed a reportable segment as each offer different products and services.
Software – delivers software and service solutions to mainly local government customers across a broad range of  >
departments
Solutions – delivering both an information service and consultancy services to a diverse range of customers across  >
both private and public sectors
Recruitment – providing personnel with information, knowledge, records and content management expertise to a  >
diverse range of customers 
Segment revenue comprises of sales to external customers and excludes gains arising on the disposal of assets 
and finance income. Segment profit reported to the board represents the profit earned by each segment before the 
allocation of tax, interest payments and share option charges.  The assets and liabilities of the Group are not reviewed 
by the chief executive decision-maker on a segment basis.
The Group does not place reliance on any specific customer and has no individual customer that generates 10% or 
more of its total Group revenue.
The segment revenues by geographic location for the year ended 31 October 2010 are as follows:
United Kingdom
£000
Rest of World
£000
Total
£000
Revenues from external customers 30,724 544 31,268
The segment revenues by geographic location for the year ended 31 October 2009 are as follows:
United Kingdom
£000
Rest of World
£000
Total
£000
Revenues from external customers 31,856 308 32,164 Idox plc Annual Report and Accounts 2010 35
For the year ended 31 October 2010
Notes to the Accounts cont’d
The segment results by business unit for the year ended 31 October 2010 are as follows:
Software
£000
Solutions
£000
Recruitment
£000
Total
£000
Revenues from external customers 24,140 4,165 2,963 31,268
Cost of sales (3,125) (348) (1,817) (5,290)
Gross profit 21,015 3,817 1,146 25,978
Operating costs (12,749) (3,530) (982) (17,261)
Profit before interest, tax, depreciation, amortisation, share option, 
impairment and redundancy costs 8,266 287 164 8,717
Depreciation (311) (90) (2) (403)
Amortisation (1,822) (429) (9) (2,260)
Share options costs (185) - - (185)
Redundancy (113) (49) (25) (187)
Profit before interest and taxation 5,835 (281) 128 5,682
Interest receivable 8 - - 8
Segment profit (see reconciliation below) 5,843 (281) 128 5,690
The segment results for the year ended 31 October 2009 are as follows:
Software
£000
Solutions
£000
Recruitment
£000
Total
£000
Revenues from external customers 25,053 3,352 3,759 32,164
Cost of sales (3,766) (934) (2,583) (7,283)
Gross profit 21,287 2,418 1,176 24,881
Operating costs (14,120) (2,071) (1,211) (17,402)
Profit before interest, tax, depreciation, amortisation, share option, 
impairment and redundancy costs
7,167 347 (35) 7,479
Depreciation (291) (79) (2) (372)
Amortisation (1,039) (73) - (1,112)
Share options costs (99) - - (99)
Goodwill impairment charge - (533) - (533)
Redundancy (351) (76) - (427)
Profit before interest and taxation 5,387 (414) (37) 4,936
Interest receivable 22 3 4 29
Segment profit (see reconciliation below) 5,409 (411) (33) 4,965 Idox plc Annual Report and Accounts 2010 36
For the year ended 31 October 2010
Notes to the Accounts cont’d
Reconciliations of reportable profit
2010 2009
£000 £000
Profit:
Total profit for reportable segments 5,690 4,965
Corporate finance costs (438) -
Net financial costs (309) (486)
Profit before taxation 4,943 4,479
Other financial costs relate to loan interest, exchange differences, bank loan facility fee amortisation and interest 
receivable which have not been included in reportable segments.
3 OPERATING PROFIT FOR THE YEAR
Operating profit for the year has been arrived at after charging: 
2010 2009
£000 £000
Auditors’ remuneration:
- Fees payable to the company’s auditor for the audit of the parent company 25 25
- The audit of the company’s subsidiaries, pursuant to legislation 46 48
- Other services pursuant to legislation 16 16
- Tax services 15 13
Bank facility fee amortisation 85 85
Operating lease rentals – buildings 367 313
Depreciation – property, plant & equipment, owned 403 372
Amortisation of intangibles 2,260 1,112
Loss of disposal of property, plant and equipment 160 -
Equity-settled share-based payments 185 99
Foreign exchange loss/(gain) 42 -
Net exit charge of derivative swap instrument - 48 Idox plc Annual Report and Accounts 2010 37
For the year ended 31 October 2010
Notes to the Accounts cont’d
4 DIRECTORS AND EMPLOYEES
Staff costs during the year were as follows:
2010 2009
£000 £000
Wages and salaries 12,333 12,183
Social security costs 1,415 1,380
Pension costs 422 463
Share based payment charge 185 99
14,355 14,125
During the year the group incurred restructuring costs of £187,000 (2009: £427,000). The restructuring costs represent 
redundancy payments to former staff.
The average number of employees of the group during the year was 332 (2009: 304) and is made up as follows:
2010 2009
No No
Office and administration (including Directors of the company and its subsidiary undertakings) 40 43 
Sales 44 32 
Development 82 83 
Operations 97 89 
Solutions 56 32 
Recruitment 13 25 
332 304
Remuneration in respect of directors was as follows:
2010 2009
£000 £000
Emoluments 681 471
Pension contributions 16 15
Share based payment charge 165 99
862 585
The amounts set out above include remuneration in respect of the highest paid director as follows: 
2010 2009
£000 £000
Aggregate emoluments 306 181
Pension contributions 10 11
316 192
Details of the remuneration for each director are included in the remuneration report which can be found on page 13 but 
which do not form part of the audited accounts. Idox plc Annual Report and Accounts 2010 38
For the year ended 31 October 2010
Notes to the Accounts cont’d
5 CORPORATE FINANCE COSTS
Corporate finance costs are incurred by the Group through acquisition activity.  Following the implementation of IFRS 3 
R all acquisition related costs are expensed in the period incurred rather than added to the cost of investment.
6 FINANCE INCOME AND COSTS
2010 2009
£000 £000
Interest receivable 15 29
Bank loans interest payable (189) (353)
Bank loan facility fee amortisation (85) (85)
Fair value gain / (loss) on financial liabilities recognised in profit or loss (42) 96
Exit charges from derivatives - (144)
Net finance costs (301) (457)
7 DIVIDENDS
2010 2009
£000 £000
Final dividend paid in respect of the year ended 31 October 2009 and 31 October 2008 413 395
Pence per ordinary share 0.12p 0.115p
Interim dividend paid in respect of the year ended 31 October 2010 and 31 October 2009 344 277
Pence per ordinary share 0.10p 0.08p
The directors have proposed the payment of a final dividend of 0.35p per share, which would amount to £1,205,000 
(2009: 0.12p). Idox plc Annual Report and Accounts 2010 39
For the year ended 31 October 2010
Notes to the Accounts cont’d
8 INCOME TAX
The tax charge is made up as follows:
2010 2009
£000 £000
Current tax
Corporation tax on profits for the period 1,909 1,637
Over provision in respect of prior periods (37) (384)
Total current tax 1,872 1,253
Deferred tax
Origination and reversal of temporary differences (373) (321)
Amortisation of intangibles difference in tax rate (198) -
Adjustments in respect of prior periods 4 88
Total deferred tax (567) (233)
Total tax charge 1,305 1,020
Unrelieved trading losses of £116,000 (2009: £116,000) which, when calculated at the standard rate of corporation 
tax in the United Kingdom of 28% (2009: 28%), amounts to £32,000 (2009: £32,000). These remain available to offset 
against future taxable trading profits. 
Factors affecting the tax charge in the period:
2010 2009
£000 £000
Profit before taxation 4,943 4,479
Profit on ordinary activities multiplied by the standard rate of corporation tax in the UK of 28% (2009: 28%) 1,384 1,254
Effects of:
Expenses not deductible for tax purposes 156 49
Marginal relief (4) -
Share based payments - (62)
Prior year deferred tax 4 -
Difference in deferred tax rate (198) (2)
Adjustments to tax charge in respect of prior year (37) (296)
Net movement on deferred tax on intangibles - 77
1,305 1,020 Idox plc Annual Report and Accounts 2010 40
For the year ended 31 October 2010
Notes to the Accounts cont’d
9 EARNINGS PER SHARE
The earnings per ordinary share is calculated by reference to the earnings attributable to ordinary shareholders divided 
by the weighted average number of shares in issue during each period, as follows:
2010 2009
£000 £000
Profit for the year 3,638 3,459
Basic earnings per share
Weighted average number of shares in issue 341,003,888 342,706,522
Basic earnings per share 1.07p 1.01p
Weighted average number of shares in issue 341,003,888 342,706,522
Add back:
Treasury shares 2,525,500 928,069
ESOP shares 628,978 523,775
Allotted, called up and fully paid share capital 344,158,366 344,158,366
Diluted earnings per share
Weighted average number of shares in issue used in basic earnings per share calculation 341,003,888 342,706,522
Dilutive share options 5,841,718 3,890,563
Weighted average number of shares in issue used in dilutive earnings per share calculation 346,845,606 346,597,085
Diluted earnings per share 1.05p 1.00p
Normalised earnings per share
Add back:
Amortisation 2,260 1,112
Impairment - 533
Share option costs 185 99
Corporate finance costs 438 -
Restructuring costs 187 427
Tax effect (737) (459)
Normalised profit for year 5,971 5,171
Weighted average number of shares in issue 341,003,888 342,706,522
Normalised earnings per share 1.75p 1.51p
Normalised diluted earnings per share 1.72p 1.49p Idox plc Annual Report and Accounts 2010 41
For the year ended 31 October 2010
Notes to the Accounts cont’d
10  PROPERTY, PLANT AND EQUIPMENT
Computer 
hardware
Fixtures, fittings 
and equipment
Library books 
and journals Total
£000 £000 £000 £000
Cost 
At 1 November 2008 1,492 833 488 2,813
Additions 467 8 120 595
Additions on acquisition 26 8 - 34
At 31 October 2009 1,985 849 608 3,442
Additions 246 3 60 309
Additions on acquisition 1 - - 1
Disposals (1,464) (571) (518) (2,553)
At 31 October 2010 768 281 150 1,199
Depreciation
At 1 November 2008 1,346 550 417 2,313
Provided in the year 167 139 66 372
At 31 October 2009 1,513 689 483 2,685
Provided in the year 304 70 29 403
Eliminated on disposal (1,340) (570) (483) (2,393)
At 31 October 2010 477 189 29 695
Net book amount at 31 October 2010 291 92 121 504
Net book amount at 31 October 2009 472 160 125 757
Net book amount at 1 November 2008 146 283 71 500
The Group has pledged the above assets to secure banking facilities granted to the Group.  Idox plc Annual Report and Accounts 2010 42
For the year ended 31 October 2010
Notes to the Accounts cont’d
11 INTANGIBLE ASSETS 
Goodwill
Customer 
relationships Trade names Software
Development 
costs Database
Order 
backlog Total
£000 £000 £000 £000 £000 £000 £000 £000
Cost 
At 1 November 2008 20,765 7,020 3,020 3,890 506 - - 35,201
Additions on acquisition 903 254 205 - - 406 - 1,768
Additions - - - 45 419 - - 464
Fair value adjustment 134 - - - - - - 134
At 31 October 2009 21,802 7,274 3,225 3,935 925 406 - 37,567
Additions - - - 304 570 - - 874
Additions on acquisition 4,394 3,621 588 449 - 155 4,200 13,407
At 31 October 2010 26,196 10,895 3,813 4,688 1,495 561 4,200 51,848
Amortisation and
impairment losses
At 1 November 2008 2,032 498 215 543 26 - - 3,314
Impairment 533 - - - - - - 533
Amortisation for the year - 369 162 390 150 41 - 1,112
At 31 October 2009 2,565 867 377 933 176 41 - 4,959
Amortisation for the year - 577 201 527 244 96 615 2,260
At 31 October 2010 2,565 1,444 578 1,460 420 137 615 7,219
Carrying amount at 
31 October 2010 23,631 9,451 3,235 3,228 1,075 424 3,585 44,629
Carrying amount at 
31 October 2009 19,237 6,407 2,848 3,002 749 365 - 32,608
Carrying amount at 
1 November 2008 18,733 6,522 2,805 3,347 480 - - 31,887
During the year, goodwill was reviewed for impairment in accordance with IAS 36, Impairment of assets. Impairment 
charges of £Nil (2009: £533,000) arose as a result of this review. The impairment charge in 2009 related to the 
Consulting division of TFPL, included within the Solutions business. 
MDA
On 1 March 2010 the Group acquired 11 long-term managed service contracts for the provision of land and property 
information solutions to UK Local Authorities for a consideration of £2.9m. This was funded from existing cash 
resources.  These contracts have been categorised as a backlog order book within intangible assets.
 
The Group has taken over provision of the on-going managed-services under the contracts, where initial implementation 
has been successfully completed. The agreements are part of the government’s Local Authority Modernisation 
Programme and have estimated lifetime revenues of £7.2m.  Idox plc Annual Report and Accounts 2010 43
For the year ended 31 October 2010
Notes to the Accounts cont’d
The remaining useful lives and carrying value of the above intangibles assets is as follows:
2010 2009 2010 2009
Remaining 
amortisation period 
(years)
Remaining 
amortisation period 
(years)
Carrying value
£000
Carrying value
£000
CAPS intangibles:
Customer relationships 16.5 17.5 4,837 5,130
Trade names 16.5 17.5 2,060 2,185
Software 6.5 7.5 1,980 2,285
Plantech intangibles:
Customer relationships 17 18 984 1,042
Trade names 17 18 442 468
Software 7 8 588 672
Development costs 0.5 1.5 25 76
j4b intangibles:
Customer relationships (product) 3.5 4.5 87 112
Customer relationships (project) 8.5 9.5 110 124
Trade names 8.5 9.5 175 195
Database 3.5 4.5 284 365
GRANTfinder intangibles
Trade name 9.5 - 221 -
Database 4.5 - 140 -
Customer contracts and relationships 4.5 - 1,170 -
Order backlog 4.5 - 1,170 -
Strand intangibles
Trade name 9.75 - 337 -
Software 4.75 - 422 -
Customer relationships 4.75 - 2,263 -
LAMP contracts intangibles
Backlog order book 10 - 2,415 -
Intelligent Resources intangibles
Software 4 5 36 45 Idox plc Annual Report and Accounts 2010 44
For the year ended 31 October 2010
Notes to the Accounts cont’d
2010 2009 2010 2009
Remaining 
amortisation period 
(years)
Remaining  
amortisation period 
(years)
Carrying value
£000
Carrying value
£000
Development costs 5 5 1,050 673
Software costs 3 - 202 -
Impairment test for goodwill
For this review goodwill was allocated to individual Cash Generating Units (CGU) on the basis of the Group’s operations. 
The carrying value of goodwill by each CGU is as follows:
2010 2009
£000 £000
Cash Generating Units (CGU)
Software 17,870 15,970
Idox Information Solutions 3,804 1,310
TFPL Recruitment 1,957 1,957
23,631 19,237
The recoverable amount of all CGU’s has been determined using value-in-use calculations.  These calculations use pre-
tax cash flow projections based on financial budgets approved by management covering the next five financial years.  
Cash flows beyond this period are extrapolated using the estimated growth rates stated below.
For value in use calculations, the growth rates and margins used to estimate future performance are based on 
management’s best estimate of short term performance based on an assessment of market opportunities and macro 
economic conditions. In the year to 31 October 2010 and the year to 31 October 2009, the Weighted Average Cost of 
Capital for the Group has been used as an appropriate discount rate to apply to cash flows. This represents the overall 
required return on the Group as a whole and is also considered appropriate to each CGU.
The assumptions used for the value in use calculations are as follows and are considered appropriate for each of the risk 
profiles of the respective CGU:
2010 2009
Discount rate 12.5% 12.5%
Growth rate 2% 2%
These assumptions have been used for the analysis of each CGU.
Sensitivities have been run on cash flow forecasts for all CGU’s. Management are satisfied that the key assumptions are 
achievable and that reasonably possible changes to those key assumptions would not lead to the carrying amount of 
the relevant CGU exceeding the recoverable amount.   Idox plc Annual Report and Accounts 2010 45
For the year ended 31 October 2010
Notes to the Accounts cont’d
12 FINANCIAL ASSETS AND LIABILITIES
Categories of financial assets and liabilities
The disclosures detailed below are as required by IFRS 7 Financial Instruments: Disclosures.  The carrying amounts 
presented on the Balance Sheet relate to the following categories of assets and liabilities:
2010 2009
Financial assets Note £000 £000
Available-for-sale financial assets
Securities and debentures 13 855 -
Loans and receivables:
Trade and other receivables 15 5,093 5,648
Cash and cash equivalents 14 2,004 6,947
7,097 12,595
2010 2009
Financial liabilities Note £000 £000
Financial liabilities measured at amortised cost:
Non-current: 19 1,866 2,781
Borrowings 1,866 2,781
Current:
Borrowings 19 1,000 1,000
Trade and other payables 16 2,784 3,171
3,784 4,171
13 OTHER LONG TERM FINANCIAL ASSETS
Other long-term financial assets include the following investments, in accordance with the fair value hierarchy these are 
defined as level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities.
2010 2009
£000 £000
Securities and debentures
Listed equity securities 855 -
The assets are stated at fair value.  The listed securities are traded on the London stock exchange.  Fair values have been 
determined by reference to their quoted bid price at the reporting date. Idox plc Annual Report and Accounts 2010 46
For the year ended 31 October 2010
Notes to the Accounts cont’d
14 CASH AND CASH EQUIVALENTS
2010 2009
£000 £000
Cash at bank and in hand 2,004 6,947
Cash and cash equivalents per cash flow statements 2,004 6,947
15 TRADE AND OTHER RECEIVABLES
2010 2009
£000 £000
Trade receivables, gross 4,778 4,508
Allowance for credit losses (269) (380)
Trade receivables, net 4,509 4,128
Amounts recoverable on contracts 484 1,360
Other receivables 100 160
Financial assets 5,093 5,648
Prepayments and accrued income 822 814
Non-financial assets 822 814
Trade and other receivables 5,915 6,462
All of the closing Group trade receivables are in UK Sterling with the exception of j4b Nederland B.V. 
 (117,000 Euros; 2009: 72,726 Euros).  Amounts recoverable on contracts represent work completed and delivered to 
the customer, but due to the contractual payment terms have not yet been invoiced.
Credit quality of financial assets
The maximum exposure for the Group to credit risk for trade receivables at the reporting date by type of customer was:
2010 2009
£000 £000
Local authorities and other public bodies 3,578 3,574
Private companies 1,200 934
4,778 4,508 Idox plc Annual Report and Accounts 2010 47
For the year ended 31 October 2010
Notes to the Accounts cont’d
The ageing of trade receivables at the reporting date for the Group was:
Gross Impairment Gross Impairment
2010 2010 2009 2009
£000 £000 £000 £000
Not past due 3,411 - 2,838 -
Past due 0 to 30 days 268 - 414 -
Past due 31 to 60 days 31 - 80 -
More than 61 days 1,068 269 1,176 380
4,778 269 4,508 380
Movements in the provision for impairment of receivables for the Group were as follows:
2010 2009
£000 £000
At 1 November 380 492
Charge for the year 65 26
Utilised (176) (138)
At 31 October 269 380
The provision allowance in respect of trade receivables is used to record impairment losses unless the Group is 
satisfied that no recovery of the amount owing is possible.  At that point the amounts are considered irrecoverable 
and are written off against the trade receivable directly.  Where trade receivables are past due an assessment is made 
of individual customers and the outstanding balance.  No provision is required in respect of amounts owed by group 
undertakings.
The credit quality of the holders of the Cash at bank is AA and AAA rated. Idox plc Annual Report and Accounts 2010 48
For the year ended 31 October 2010
Notes to the Accounts cont’d
16 TRADE AND OTHER PAYABLES 
2010 2009
£000 £000
Trade payables 1,346 1,281
Accruals 1,438 1,890
2,784 3,171
The carrying values of trade and other payables are considered to be a reasonable approximation of fair value.  Accruals 
represent liabilities which have been recognised at the balance sheet date.  This amount will reduce the invoices and 
payments to which the balance relates are received and paid.  The majority of this will be released during the next six 
months.
17 OTHER LIABILITIES
2010 2009
£000 £000
Social security and other taxes 424 450
Other payables 1,969 775
Deferred income 9,401 6,913
11,794 8,138
Deferred income represents software revenue where billing milestones have been reached but the appropriate 
proportion of work has not been completed and maintenance and subscription revenues which are spread over the 
period, typically one year, for which the service is supplied.
18 PROVISIONS
2010 2009
£000 £000
At 1 November 138 370
Provision made during the year 8 138
Provision released during the year - (147)
Provision utilised during the year (13) (223)
At 31 October 133 138
The opening and closing provisions relate to estimated dilapidation costs expected to arise on exit of leased properties. Idox plc Annual Report and Accounts 2010 49
For the year ended 31 October 2010
Notes to the Accounts cont’d
19 BORROWINGS 
All borrowings are held at amortised cost and after set-off for unamortised loan facility fees are summarised as follows:
2010 2009
£000 £000
Current
Bank borrowings 1,000 1,000
Non-current
Bank borrowings 1,866 2,781
Total borrowings 2,866 3,781
The average interest rate paid was 4.28% (2009: 6.51%).  Bank borrowings of £2,866,000 (2009: £3,781,000) were 
arranged at floating interest rates.  
As security for the above loans, the Bank of Scotland plc holds a bond and floating charge over the assets of the Group, 
a composite guarantee supported by each Group company and a share pledge in respect of the entire issued share 
capital of each subsidiary company.
The loans are repayable in six monthly installments.  Interest on the loans is payable quarterly in arrears.  
The directors’ estimate that the fair value of the Group’s borrowing is not significantly different to the carrying value.
20 DEFERRED INCOME TAX
Deferred tax assets and liabilities are summarised as follows:
2010 2009
£000 £000
Deferred tax assets 283 315
Deferred tax liabilities (non current) (4,549) (3,501)
(4,549) (3,501) Idox plc Annual Report and Accounts 2010 50
For the year ended 31 October 2010
Notes to the Accounts cont’d
The movement in the year in the net deferred tax provision was as follows:
2010 2009
£000 £000
At 1 November (3,186) (3,277)
Credit to income for the year 375 308
Credit to equity (4) 25
Adjustment for changes in rate 198 -
Charged to goodwill for the year (1,649) (242)
At 31 October (4,266) (3,186)
The movement in deferred income tax assets and liabilities during the year, is as follows:
Share-based 
payments
Other temporary 
differences
Total deferred tax 
asset
Accelerated tax 
depreciation
Total deferred tax 
liability
£000 £000 £000 £000 £000
At 1 November 2008 21 244 265 (3,542) (3,542)
Charge/(credit) to income 63 (38) 25 283 283
Charge/(credit) to equity 25 - 25 - -
Deferred tax recognised on acquisition - - - (242) (242)
At 31 October 2009 109 206 315 (3,501) (3,501)
Charge/(credit) to income - (32) (32) 407 407
Charge/(credit) to equity - - - (4) (4)
Changes in rate - - - 198 198
Deferred tax recognised on acquisition - - - (1,649) (1,649)
At 31 October 2010 109 174 283 (4,549) (4,549)
There were no unprovided deferred tax assets at 31 October 2010 or 31 October 2009.  Idox plc Annual Report and Accounts 2010 51
For the year ended 31 October 2010
Notes to the Accounts cont’d
21 RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s principal financial instruments comprise cash and cash equivalents, short term deposits and bank 
borrowings. The main purpose of these financial instruments is to finance the Group’s operations. The Group has 
other financial instruments which mainly comprise trade receivables and trade payables which arise directly from its 
operations.
Risk management is carried out by the finance department under policies approved by the board of directors. The 
Group finance department identifies, evaluates and manages financial risks. The board provides guidance on overall risk 
management including foreign exchange risk, interest rate risk, credit risk, and investment of excess liquidity.
The impact of the risks required to be discussed under IFRS 7 are detailed below:
Market risk
(i) Foreign exchange risk
Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in 
a currency that is not the group’s functional currency.  The Group has minimal exposure to foreign exchange risk.  
(ii) Price risk
The Group is exposed to equity securities price risk due to investments held by the group.  The group is not exposed to 
commodity price risk.
(iii) Cash flow and fair value interest rate risk
The Group is exposed to interest rate risk in respect of cash balances held with banks and other highly rated 
counterparties. 
The Group’s main interest rate risk arises from long-term borrowings.  Borrowings issued at variable rates expose the 
group to cash flow interest rate risk.  Borrowings issued at fixed rates expose the group to fair value interest rate risk.  
During 2010 and 2009, all the group’s borrowings at variable rate were denominated in UK Sterling.
Credit risk
The Group’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at the 
reporting date, as summarised below:
2010 2009
£000 £000
Cash and cash equivalents 2,004 6,947
Trade receivables 4,509 4,128
Amounts recoverable on contracts 484 1,360
Assets available for sale 855 -
Other receivables 100 160
Financial assets at fair value 7,952 12,595
Credit risk is managed on a group basis.  Credit risks arise from cash and cash equivalents and deposits with banks 
and financial institutions, as well as credit exposures to customers, including outstanding receivables and committed 
transactions.  
The Group’s credit risk is primarily attributable to its trade receivables.  It is the policy of the Group to present the 
amounts in the balance sheet net of allowances for doubtful receivables, estimated by the Group’s management based 
on prior experience and the current economic environment. The Group reviews the reliability of its customers on a 
regular basis, such a review takes into account the nature of and the Group’s trading history with the customer. Idox plc Annual Report and Accounts 2010 52
For the year ended 31 October 2010
Notes to the Accounts cont’d
The credit risk on liquid funds is limited because the counterparties are three banks with high credit-ratings assigned 
by international credit-rating agencies. Management does not expect any losses from non-performance of these 
counterparties.
None of the Group’s financial assets are secured by collateral or other credit enhancements.
Liquidity risk
The Group closely monitors its access to bank and other credit facilities in comparison to its outstanding commitments 
on a regular basis to ensure that it has sufficient funds to meet obligations of the group as they fall due.
The board receives regular debt management forecasts which estimate the cash inflows and outflows over the next 
twelve months, so that management can ensure that sufficient financing is in place as it is required.  Surplus cash within 
the Group is put on deposit in accordance with limits and counterparties agreed by the Board, the objective being to 
maximise return on funds whilst ensuring that the short-term cashflow requirements of the Group are met.
Detailed analysis of the debt facilities taken out and available to the group are disclosed in note 19.  
As at 31 October 2010, the Group’s financial liabilities have contractual maturities (including interest payments where 
applicable) as summarised below:
Current Current Non-current Non-current
Within 6 months 6 – 12 months 1 – 5 years Later than 5 years
£000 £000 £000 £000
Bank borrowings 565 553 2,095 -
Trade and other payables 2,784 - - -
This compares to the maturity of the Group’s financial liabilities in the previous reporting period as follows:
Current Current Non-current Non-current
Within 6 months 6 – 12 months 1 – 5 years Later than 5 years
£000 £000 £000 £000
Bank borrowings 592 661 3,345 -
Trade and other payables 3,171 - - -
The above amounts reflect the contractual undiscounted cashflows, which may differ from the carrying values of the 
liabilities at the reporting date.
If interest rates increased by 1%, the contractual undiscounted cashflows would increase by £45,000. Idox plc Annual Report and Accounts 2010 53
For the year ended 31 October 2010
Notes to the Accounts cont’d
Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in 
order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure 
to reduce the cost of capital. 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 debts.
Capital for the reporting periods under review is summarised as follows:
2010 2009
£000 £000
Total equity 31,012 28,173
Less unrestricted cash and cash equivalents (note 14) (2,004) (6,947)
29,008 21,226
Total equity 31,012 28,173
Borrowings 2,866 3,781
33,878 31,954
Capital-to-overall financing ratio 0.86 0.66
22 SHARE CAPITAL
2010 2009
£000 £000
Authorised:
650,000,000 ordinary shares of 1p each (2009: 650,000,000) 6,500 6,500
Allotted, called up and fully paid
As at 1 November and 31 October 3,442 3,442
344,158,366 ordinary shares of 1p each (2009: 344,158,366) 3,442 3,442
Movement in issued share capital in the year
During the year to 31 October 2010, one employee exercised share options.  
 
The company has one class of ordinary shares which carry no right to fixed income.
At 31 October 2010, there were 670,953 (2009: 572,244) shares in issue under ESOP .  During the year the average 
issue share price was 11.2p (2009: 10.8p).
At 31 October 2010 there were 3,838,000 shares held in treasury. Idox plc Annual Report and Accounts 2010 54
For the year ended 31 October 2010
Notes to the Accounts cont’d
23 SHARE OPTIONS
The company has an unapproved share option scheme for all employees (including directors). All share options are 
exercisable at a price equal to the average market price of the company’s shares on the date of grant. The vesting period is 
usually quarterly from the date of grant. The options are settled in equity once exercised.  
Details of all share options over 1p Ordinary shares, falling within the measurement and recognition criteria of IFRS 2 “Share-
based Payment”, including their contractual life and exercise prices are as follows:
At start of year Granted Exercised At end of year Exercise price
Exercise date 
from
Exercise date 
to
4,500,000 - 4,500,000 6.50p Feb 2007 Oct 2011
4,500,000 - 4,500,000 9.00p Feb 2007 Oct 2014
2,366,000 (300,000) 2,066,000 7.50p May 2007 May 2017
615,385 - 615,385 8.125p Jun 2007 Jun 2017
550,000 - 550,000 15.00p Dec 2007 Dec 2017
960,000 - 960,000 12.50p May 2008 May 2018
1,192,308 - 1,192,308 13.00p Aug 2008 Aug 2018
1,033,334 - 1,033,334 15.00p Aug 2008 Aug 2018
- 8,105,366 - 8,105,366 10.25p Mar 2010 Mar 2020
15,717,027 8,105,366 (300,000) 23,522,393
The following table sets out the number of share options and associated WAEP outstanding during the year.
2010 2009
WAEP WAEP
No Pence No Pence
Outstanding at the beginning of the year 15,717,027 8.13 16,017,027 8.13
Granted during the year 8,105,366 10.25 - -
Exercised during the year (300,000) 7.5 (300,000) 7.5
Forfeited during the year - - -
Outstanding at the end of the year 23,522,393 9.55 15,717,027 8.13
Exercisable at the end of the year 15,922,578 11,564,029 11.75
The share options outstanding at the end of the year have a weighted average remaining contractual life of 5 years. The share 
options exercised during the year had a weighted average share price of 11.62p. Idox plc Annual Report and Accounts 2010 55
For the year ended 31 October 2010
Notes to the Accounts cont’d
The fair values were calculated using the Black-Schöles Pricing Model and the following information.
Date of issue
Number 
granted
Weighted 
average share 
price
Weighted 
average 
exercise price
Expected 
volatility Expected life Risk free rate
Expected 
dividend yield
Weighted 
average fair 
value at grant 
date
No. pence pence % Years % %   £
Mar 2010 8,105,366 10.60 10.25 45.00 10.00 5.00 0.60 0.06
Expected volatility was determined by calculating the historical volatility of the company’s share price over the previous 
3 years. The expected life used in the model has been adjusted, based on the management’s best estimate, for the 
effects of non-transferability, exercise restrictions and behavioural considerations.
The company recognised total expenses of £185,000 (2009: £99,000) related to equity-settled share-based payment 
transactions during the year.
Transitional Provisions
Under the transitional provisions of IFRS 2 share options granted prior to 7 November 2002 but not vested at 1 
November 2006 fall outside the measurement and recognition criteria of IFRS 2 “Share-based Payment”.
Details of all such share options over 1p Ordinary shares, including their contractual life and exercise prices, are as 
follows:
At  start of the year Lapsed At end of the year Exercise price Exercise date from Exercise date to
1,500,000 (1,500,000) - 12.75p Nov 2001 Jun 2010
166,667 - 166,667 12.00p Dec 2003 Dec 2013
1,666,667 (1,666,667) - 12.00p Jun 2002 Dec 2005
645,159 (645,159) - 15.50p Jul 2004 Jul 2014
1,548,387 (129,302) 1,419,085 15.50p Feb 2002 Nov 2012
1,863,636 - 1,863,636 11.00p Oct 2002 Oct 2012
173,913 (173,913) - 11.50p Oct 2006 Oct 2016
4,000,000 - 4,000,000 10.00p Sep 2004 May 2014
11,564,429 (4,115,041) 7,449,388
For those share options the table below summarises the number of these share options and the associated weighted 
average exercise price (WAEP) outstanding during the year.
2010 2009
WAEP WAEP
No Pence No Pence
Outstanding at the beginning of the year 11,564,429 11.75 11,564,429 11.75
Lapsed during the year (4,115,041) 12.91 - -
Outstanding at the end of the year 7,449,388 11.34 11,564,429 11.75
Exercisable at the end of the year 7,449,388 11.34 11,564,429 11.75
Exercisable at the end of the year 11,564,429 - 11,564,429 11.75 Idox plc Annual Report and Accounts 2010 56
For the year ended 31 October 2010
Notes to the Accounts cont’d
24 ACQUISITIONS
GRANTfinder
On 4 May 2010, the Group acquired the entire share capital of GRANTfinder Limited for a consideration of £3.3m, which 
was satisfied as detailed below. 
GRANTfinder is an important provider of value-added databases for government and EU funding information to a wide 
range of UK public and private customers. The acquisition will extend the capabilities of the Idox group with additional 
value-added content and boost its subscription-based recurring revenue stream. GRANTfinder will be easily integrated 
into the enlarged Idox Information Solutions Business which includes j4b Software & Publishing Limited, acquired in 
2009, and the longstanding planning content business. This will deliver a market leading position in the provision of 
grant related information in the UK.
Goodwill arising on the acquisition of GRANTfinder Limited has been capitalised and consists largely of the workforce 
value, synergies and economies of scale expected from combining the operations of GRANTfinder with Idox Information 
Solutions Limited.  None of the goodwill recognised is expected to be deductible for income tax purposes.  The 
purchase of GRANTfinder Limited has been accounted for using the acquisition method of accounting.
Book value
£000
Fair value 
adjustments
£000
Fair value
£000
Intangible assets 59 2,929 2,988
Property, plant and equipment 7 - 7
Trade receivables 299 - 299
Other receivables 108 - 108
Cash at bank 51 - 51
TOTAL ASSETS 524 2,929 3,453
Trade payables (13) - (13)
Deferred revenue - (1,627) (1,627)
Social security and other taxes (161) - (161)
Accruals (24) (15) (39)
Deferred tax liability - (806) (806)
TOTAL LIABILITIES (198) (2,448) (2,646)
NET ASSETS 326 481 807
Purchased goodwill capitalised 2,494
3,301
Satisfied by:
Cash to vendor 2,793
Director’s loan account 108
Deferred consideration 400
Total consideration 3,301 Idox plc Annual Report and Accounts 2010 57
For the year ended 31 October 2010
Notes to the Accounts cont’d
The fair values stated above are provisional. The fair value adjustment for the intangible assets relates to trade names, 
customer relationships, database and order backlog.  A related deferred tax liability has also been recorded as a fair 
value adjustment.
Other adjustments were made to the revenue recognition policy for subscription income in order to bring it in line with 
group policy.
The revenue included in the consolidated statement of comprehensive income since 4 May 2010 contributed by 
GRANTfinder Limited was £775k.  GRANTfinder Limited also contributed profit of £106k over the same period.
Had GRANTfinder Limited been consolidated from 1 November 2009, the beginning of the Group’s financial year, the 
consolidated statement of comprehensive income would have included revenue of £1,769k and profit of £320k.
 
Strand Electoral Management Services Limited
On 29 July 2010, the Group acquired the entire share capital of Strand Electoral Management Services Limited for a 
consideration of £4.4m, which was satisfied in cash.  
 
Strand Electoral Management Services Limited, is one of the UK’s leading providers of electoral management software 
and services, supplying 116 local authorities that cover a voting population of 13 million people.
The acquisition of Strand Electoral Management Services Limited is an important strategic addition for Idox, enabling it 
to enter another very active local government market with a strong suite of products and good opportunities for growth 
through cross selling.
Goodwill arising on the acquisition of Strand Electoral Management Services Limited has been capitalised and consists 
largely of the workforce value, synergies and economies of scale expected from combining the operations of Strand 
Electoral Management Services Limited with Idox Software Limited.  None of the goodwill recognised is expected to 
be deductible for income tax purposes.  The purchase of Strand Electoral Management Services Limited has been 
accounted for using the acquisition method of accounting.
Book value
£000
Fair value 
adjustments
£000
Fair value
£000
Intangible assets 159 2,961 3,120
Property, plant and equipment 2 - 2
Trade receivables 3 - 3
Other receivables 99 - 99
Cash at bank 1,207 - 1,207
TOTAL ASSETS 1,470 2,961 4,431
Trade payables (167) - (167)
Deferred revenue (887) - (887)
Accruals (33) - (33)
Deferred tax liability - (843) (843)
TOTAL LIABILITIES (1,087) (843) (1,930)
NET ASSETS 383 2,118 2,501
Purchased goodwill capitalised 1,899
4,400 Idox plc Annual Report and Accounts 2010 58
For the year ended 31 October 2010
Notes to the Accounts cont’d
Book value
£000
Fair value 
adjustments
£000
Fair value
£000
Satisfied by:
Cash to vendor 3,900
Deferred consideration 500
Total consideration 4,400
The fair values stated above are provisional. The fair value adjustment for the intangible assets relates to trade names, 
software and customer relationships.  A related deferred tax liability has also been recorded as a fair value adjustment.
The revenue included in the consolidated statement of comprehensive income since 29 July 2010 contributed by Strand 
Electoral Management Services Limited was £344k.  Strand Electoral Management Services Limited also contributed 
profit of £102k over the same period.
Had Strand Electoral Management Services Limited been consolidated from 1 November 2009, the beginning of the 
Group’s financial year, the consolidated statement of comprehensive income would have included revenue of £1,565k 
and profit of £139k.
25 OPERATING LEASE COMMITMENTS
The future aggregate minimum lease payments under non-cancellable operating leases are as follows:
2010 2009
The group £000 £000
Amounts due:
Within one year 196 120
Between one and five years 164 403
After five years - -
360 523
Operating lease payments represent rentals payable by the Group for office premises and motor vehicle leasing charges. 
26 CAPITAL COMMITMENTS
The Group had no capital commitments at 31 October 2010 (2009: £Nil).
27 CONTINGENT LIABILITIES 
The Company has agreed to provide continuing financial support to its subsidiary undertakings, Idox Software Limited, 
Idox Information Solutions Limited and TFPL Limited. There were no material Group contingent liabilities at 31 October 
2010 or 31 October 2009. Idox plc Annual Report and Accounts 2010 59
For the year ended 31 October 2010
Notes to Accounts cont’d
28 POST BALANCE SHEET EVENTS
The Group signed a short term working capital banking facility of £6m on 10 December 2010.
On 13 December 2010, the Group announced the acquisition of McLaren Software Group Limited for £1.0m in cash.  
McLaren is a leading supplier of engineering document management and control applications serving many leading 
international companies in industries including oil & gas, mining, utilities, pharmaceuticals and transportation. 
McLaren had revenues of £6.4m for the year ended 31 December 2009, with an operating profit of £0.4m and a loss 
before taxation of £1m resulting from the pre-acquisition capital structure.  Net liabilities at completion are expected to 
be £1.3m.
The acquisition of McLaren extends Idox’s core skills in planning and building documents management into the related 
area of engineering drawings. This will provide Idox with the opportunity of broadening its activities into complementary 
UK and international markets in both the private and public sector, particularly where the management of complex 
engineering systems interacts with regulatory oversight.
Full IFRS 3(R) disclosure has not been included in the financial statements due to the timing of the acquisition.
29 RELATED PARTY TRANSACTIONS
Remuneration paid to senior management of the group:
2010 2009
£000 £000
Salaries and other short term employee benefits 1,198 1,118
Post-employment benefits 35 32
Share-based payments 165 99
1,398 1,249
In the year ended 31 October 2010 Martin Brooks, Chairman of Idox plc, was entitled to remuneration of £6,750 (2009: 
£3,938) as chairman of Cornwall Development Company, which as in the previous year he elected not to take. Cornwall 
Development Company Ltd is a company limited by guarantee and wholly owned by Cornwall Council.  Cornwall 
Council is a customer of Idox Software Limited, a wholly owned subsidiary of Idox plc.
Dale Gould, an employee of the Group, owns the office premises of Strand Electoral Management Services Limited, 
a wholly owned subsidiary of Idox plc.  Mr Gould has received £6,000 rental income from Idox plc from the date of 
acquisition to 31 October 2010. Idox plc Annual Report and Accounts 2010 60
Report of the Independent Auditors 
We have audited the parent company financial 
statements of Idox plc for the year ended 31 
October 2010 which comprise the company 
balance sheet and the related notes. The 
financial reporting framework that has been 
applied in their preparation is applicable law and 
United Kingdom Accounting Standards (United 
Kingdom 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 
auditors
As explained more fully in the Directors’ 
Responsibilities Statement, the directors are 
responsible for the preparation of the parent 
company financial statements and for being 
satisfied that they give a true and fair view. Our 
responsibility is to audit the parent company 
financial statements in accordance with 
applicable law and International Standards on 
Auditing (UK and Ireland). Those standards 
require us to comply with the Auditing Practices 
Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial 
statements
A description of the scope of an audit of financial 
statements is provided on the APB’s website at 
www.frc.org.uk/apb/scope/UKNP .
Opinion on financial statements
In our opinion the parent company financial 
statements:
give a true and fair view of the state of the  >
company’s affairs as at 31 October 2010; 
have been properly prepared in accordance  >
with United Kingdom Generally Accepted 
Accounting Practice; and
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 parent company 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.
Other matter
We have reported separately on the group 
financial statements of Idox plc for the year 
ended 31 October 2010.
Mark Cardiff
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
25 January 2011 Idox plc Annual Report and Accounts 2010 61
For the year ended 31 October 2010
Company Balance Sheet
Note 2010 2009
£000 £000
Fixed assets
Investments 5 43,283 34,541
Current assets
Debtors: falling due after one year 6 265 555
Creditors: amounts falling due within one year     7 (24,746) (13,777)
Net current liabilities (24,481) (13,222)
Total assets less current liabilities 18,802 21,319
Creditors: amounts falling due after more than one year 8 (1,866) (2,781)
Net assets 16,936 18,538
Capital and reserves
Called up share capital 9 3,442 3,442
Capital redemption reserve 11 1,112 1,112
Share premium account 11 9,903 9,903
Treasury reserve 11 (455) (212)
Revaluation reserve 11 35 -
Share option reserve 11 630 454
Profit and loss account 11 2,269 3,839
Shareholders' funds 16,936 18,538
The financial statements were approved by the Board of Directors and authorised for issue on 25 January 2011 and are 
signed on its behalf by:
William Edmondson         Richard Kellett-Clarke
Chief Financial Officer                     Chief Executive Officer
The accompanying accounting policies and notes form an integral part of these accounts.
Company name: Idox plc   Company number: 03984070 Idox plc Annual Report and Accounts 2010 62
For the year ended 31 October 2010
Notes to the Company Financial Statement
1 ACCOUNTING POLICIES
Basis of preparation
The accounts have been prepared in accordance with applicable United Kingdom accounting standards and under the 
historical cost convention, except for the valuation of listed investments.
No profit and loss account is presented for the Company as permitted by Section 408 of the Companies Act, 2006.
The trade and assets of Idox Information Service Limited have been hived across to the fellow subsidiary company Idox 
Information Solutions Limited.  As a result, the respective carrying value of Idox plc’s investment in Idox Information 
Services Limited is not justified by the individual recoverable amounts of these entities.  However, a true and fair override 
is enacted to reflect that the value of the overall trade and assets now recorded within Idox Information Solutions Limited 
have not diminished and therefore no overall loss of value has occurred.
Investments
Investments, held as fixed assets, are included at cost less amounts written off for any permanent diminution in value.  
Investments in a UK listed company are measured at market prices.  Movements in market value are recognised 
through the revaluation reserve.
FRS 20 Share Based Payment
All share-based payment arrangements granted after 7 November 2002 that had not vested prior to 1 November 2006 
are recognised in the financial statements.
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values.  
Where employees are rewarded using share-based payments, the fair values of employees’ services are determined 
indirectly by reference to the fair value of the instrument granted to the employee.  This fair value is appraised at the 
grant date and excludes the impact of non-market vesting conditions (for example, profitability and sales growth 
targets).
Employees to whom share options have been granted provide their services in subsidiary companies of Idox plc.  All 
equity settled share-based payments are recognised as an expense in the profit and loss account of the relevant 
subsidiary company.  In Idox plc, the cost is allocated to investments in subsidiaries.
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based 
on the best available estimate of the number of share options expected to vest.  Estimates are revised subsequently 
if there is any indication that the number of share options expected to vest differs from previous estimates.  Any 
cumulative adjustment prior to vesting is recognised in the current period.  No adjustment is made to any expense 
recognised in prior periods if share options that have vested are not exercised.
Upon exercise of share options, the proceeds received net of attributable transaction costs are credited to share capital, 
and where appropriate share premium.
Deferred taxation
Deferred tax is recognised on all timing differences where the transactions or events that give the company an obligation 
to pay more tax in the future, or a right to pay less tax in the future, have occurred by the balance sheet date.  Deferred 
tax assets are recognised when it is more likely than not that they will be recovered.  Deferred tax is measured using 
rates of tax that have been enacted or substantively enacted by the balance sheet date.
Financial instruments
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 entity after 
deducting all of its financial liabilities. Idox plc Annual Report and Accounts 2010 63
For the year ended 31 October 2010
Notes to the Company Financial Statement 
cont’d
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt 
instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in 
the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss 
account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this 
is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
Interest and expenditure arising on financial instruments is recognised on the accruals basis and credited or charged to 
the profit and loss account in the financial period to which it relates.  The Group does not apply FRS 26.
Operating leases
Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases.  
All leases are operating in nature.  Amounts paid under operating leases are charged to the profit and loss account on a 
straight line basis over the lease term.
2 DIRECTORS AND EMPLOYEES
There are no wages and salaries paid by the parent company.
The company has no employees and directors are remunerated by other group companies.  Details of the remuneration 
for each director are included in the Report on Remuneration which can be found on page 13 but which do not form 
part of the audited accounts.
3 DIVIDENDS
2010 2009
£000 £000
Final dividend paid in respect of the year ended 31 October 2009 and 31 October 2008 413 395
Pence per ordinary share 0.12p 0.115p
Interim dividend paid in respect of the year ended 31 October 2010 and 31 October 2009 344 277
Pence per ordinary share 0.10p 0.08p
The directors have proposed the payment of a final dividend of 0.35p per share, which would amount to £1,205,000     
(2009: 0.12p).
4 LOSS FOR THE FINANCIAL YEAR
The parent company has taken advantage of section 408 of the Companies Act 2006 and has not included its own 
profit and loss account in these financial statements.  The parent company’s loss for the year was £712,000 (2009: loss 
£589,000). Idox plc Annual Report and Accounts 2010 64
For the year ended 31 October 2010
Notes to the Company Financial Statement 
cont’d
5 INVESTMENTS
Investment 
in group 
undertakings
Shares in UK 
listed company Total
£000 £000 £000
Cost or market value
At 1 November 2009 36,141 - 36,141
Additions 7,887 820 8,707
Revaluations - 35 35
At 31 October 2010 44,028 855 44,883
Amounts written off
At 1 November 2009 1,600 - 1,600
Provided in the year - - -
At 31 October 2010 1,600 - 1,600
Net book amount
At 31 October 2010 42,428 855 43,283
At 31 October 2009 34,541 - 34,541
At 31 October 2010 the company held more than 10% of the allotted share capital of the following companies:
Country of 
registration
Class of 
share held 
Proportion 
held Nature of business
Idox Software Limited (formerly 
i-documentsystems Limited)
England Ordinary 100% Software services
Idox Information Services Limited England Ordinary 100% Information services
TFPL Limited England Ordinary 100% Recruitment services
CAPS Solutions Limited England Ordinary 100% Dormant company
i-documentsystems Trustees Limited England Ordinary 100% Corporate trustee of Employee share ownership 
trust
GRANTfinder Limited England Ordinary 100% Information services
Strand Electoral Management Services Limited England Ordinary 100% Software services
j4b Nederland BV Holland Ordinary 100% Information services
i-documentsystems Limited (formerly IDOX 
Software Limited) 
England Ordinary 100% Dormant company
Information into Intelligence Limited* England Ordinary 100% Dormant company
The Planning Exchange Limited England Ordinary 100% Dormant company
Nettgain Solutions Limited England Ordinary 100% Dormant company Idox plc Annual Report and Accounts 2010 65
For the year ended 31 October 2010
Notes to the Company Financial Statement 
cont’d
Country of 
registration
Class of 
share held 
Proportion 
held Nature of business
Mandoforms Limited England Ordinary 100% Dormant company
Idox Information Solutions Limited (formerly j4b 
Software & Publishing Limited)
England Ordinary 100% Information services
Plantech Limited England Ordinary 100% Dormant company
Wastedocs Limited** Scotland Ordinary 100% Dormant company
All subsidiaries have been consolidated in the Group accounts.
* Dissolved 2 November 2010
** Dissolved on 19 November 2010 
6 DEBTORS
2010 2009
£000 £000
Amounts owed by group undertakings 265 555
265 555
Included in the above for the company is £265,000 (2009: £422,000) which is due after more than one year. The 
directors consider this loan to be recoverable.
7 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2010 2009
£000 £000
Bank loan 1,000 1,000
Amounts owed to group undertakings 22,822 12,549
Other creditors 790 3
Accruals and deferred income 134 225
24,746 13,777
8 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2010 2009
£000 £000
Bank loan 1,866 2,781
As security for the above loans, the Bank of Scotland plc holds a floating charge over the assets of the Group, a 
composite guarantee supported by each Group company and a share pledge in respect of the entire issued share 
capital of each subsidiary company.
The loans are repayable in six monthly installments.  
Interest on the loans is payable quarterly in arrears. The interest rate charged is 4% above LIBOR.  Idox plc Annual Report and Accounts 2010 66
For the year ended 31 October 2010
Notes to the Company Financial Statement 
cont’d
9 SHARE CAPITAL
2010 2009
£000 £000
Authorised:
650,000,000 ordinary shares of 1p each (2009: 650,000,000) 6,500 6,500
Allotted, called up and fully paid at 1 November 2009 and 31 October 2010 3,442 3,442
344,158,366 ordinary shares of 1p each (2009: 344,158,366) 3,442 3,442
Movement in Issued Share Capital in the Year
The company has one class of ordinary shares which carry no right to fixed income.
During the year 2,250,000 shares (2009: 1,888,000) were bought back into Treasury at an average price of 10.8p (2009: 
11.2p).
10 SHARE OPTIONS   
The company has an unapproved share option scheme for all employees (including directors). All share options are 
exercisable at a price equal to the average market price of the company’s shares on the date of grant. The vesting 
period is usually 1 to 3 years. The options are settled in equity once exercised.  
Details of all share options over 1p Ordinary shares, falling within the measurement and recognition criteria of IFRS 2 
“Share-based Payment”, including their contractual life and exercise prices are as follows:
At start of year Granted Exercised At end of year Exercise price
Exercise date
from
Exercise date
to
4,500,000 - 4,500,000 6.50p Feb 2007 Oct 2011
4,500,000 - 4,500,000 9.00p Feb 2007 Oct 2014
2,366,000 (300,000) 2,066,000 7.50p May 2007 May 2017
615,385 - 615,385 8.125p Jun 2007 Jun 2017
550,000 - 550,000 15.00p Dec 2007 Dec 2017
960,000 - 960,000 12.50p May 2008 May 2018
1,192,308 - 1,192,308 13.00p Aug 2008 Aug 2018
1,033,334 - 1,033,334 15.00p Aug 2008 Aug 2018
- 8,105,366 - 8,105,366 10.25p Mar 2010 Mar 2020
15,717,027 8,105,366 (300,000) 23,522,393 Idox plc Annual Report and Accounts 2010 67
For the year ended 31 October 2010
Notes to the Company Financial Statement 
cont’d
The following table sets out the number of share options and associated WAEP outstanding during the year.
2010 2009
WAEP WAEP
No Pence No Pence
Outstanding at the beginning of the year 15,717,027 8.13 16,017,027 8.13
Granted during the year 8,105,366 10.25 - -
Exercised during the year (300,000) 7.5 (300,000) 7.5
Forfeited during the year - - -
Outstanding at the end of the year 23,522,393 9.55 15,717,027 8.14
Exercisable at the end of the year 15,922,578 11,564,429 11.75
The share options outstanding at the end of the year have a weighted average remaining contractual life of 5 years. 
 
The fair values were calculated using the Black-Schöles Pricing Model and the following information.
Date of issue
Number 
granted
Weighted 
average 
share price
Weighted 
average 
exercise 
price
Expected 
volatility Expected life Risk free rate
Expected 
dividend 
yield
Weighted 
average 
fair value at 
grant date
No. pence pence % Years % % £
Mar 2010 8,105,366 10.60 10.25 45.00 10.00 5.00 0.60 0.06
Expected volatility was determined by calculating the historical volatility of the company’s share price over the previous 
3 years. The expected life used in the model has been adjusted, based on the management’s best estimate, for the 
effects of non-transferability, exercise restrictions and behavioural considerations.
The company recognised total expenses of £185,000 (2009: £99,000) related to equity-settled share-based payment 
transactions during the year.
Transitional Provisions
Under the transitional provisions of IFRS 2 share options granted prior 7 November 2002 but not vested at 1 November 
2006 fall out with the measurement and recognition criteria of IFRS 2 “Share-based Payment”.
Details of all such share options over 1p Ordinary shares, including their contractual life and exercise prices, are as 
follows:
At start of year Lapsed At end of year Exercise price
Exercise date
from
Exercise date
to
1,500,000 (1,500,000) - 12.75p Nov 2001 Jun 2010
166,667 - 166,667 12.00p Dec 2003 Dec 2013
1,666,667 (1,666,667) - 12.00p Jun 2002 Dec 2005
645,159 (645,159) - 15.50p Jul 2004 Jul 2014
1,548,387 (129,302) 1,419,085 15.50p Feb 2002 Nov 2012
1,863,636 - 1,863,636 11.00p Oct 2002 Oct 2012 Idox plc Annual Report and Accounts 2010 68
For the year ended 31 October 2010
Notes to the Company Financial Statement 
cont’d
At start of year Lapsed At end of year Exercise price
Exercise date
from
Exercise date
to
173,913 (173,913) - 11.50p Oct 2006 Oct 2016
4,000,000 - 4,000,000 10.00p Sep 2004 May 2014
11,564,429 (4,115,041) 7,449,388
For those share options the table below summarises the number of these share options and the associated weighted 
average exercise price (WAEP) outstanding during the year.
2010 2009
    WAEP    WAEP
No Pence No Pence
Outstanding at the beginning of the year 11,564,429 11.75 11,564,429 11.75
Lapsed during the year (4,115,041) 12.91 - -
Outstanding at the end of the year 7,449,388 11.34 11,564,429 11.75
Exercisable at the end of the year 7,449,388 11.34 11,564,429 11.75
11 SHARE PREMIUM ACCOUNT AND RESERVES
The company
Capital
redemption 
reserve
Share 
premium 
account
Treasury 
reserve
Revaluation 
reserve
Share 
option
reserve
Profit 
and loss 
account Total
£000 £000 £000 £000 £000 £000 £000
At 1 November 2009 1,112 9,903 (212) - 454 3,839 15,096
Reallocation of  interest rate swap costs from 
subsidiary
- - - - - (96) (96)
Share options reserve movement - - - - 185 - 185
Shares repurchased - - (243) - - - (243)
Exercise of options from treasury reserve - - - - (9) (5) (14)
Dividends paid - - - - - (757) (757)
Revaluation of fixed asset investment - - - 35 - - 35
Loss for the year - - - - - (712) (712)
At 31 October 2010 1,112 9,903 (455) 35 630 2,269 13,494
The capital redemption reserve for the Group and the Company was created during 2003 when the entire deferred 
ordinary share capital was bought in exchange for one ordinary 1p share.  Other reserves relate to the issued share 
capital and share premium account in the Company’s subsidiary undertaking, Idox Software Limited, and has been 
treated in accordance with FRS 6 under merger accounting. The share options reserve represents shares to be issued 
on potential exercise of those share options that have been accounted for under FRS20 (IFRS2) Share Based Payments.
The purpose of the Treasury Reserve is to enable the board to issue share options to employees. Idox plc Annual Report and Accounts 2010 69
For the year ended 31 October 2010
Notes to the Company Financial Statement 
cont’d
12 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS 
2010 2009
£000 £000
Loss for the financial year (712) (588)
Revaluation of investment in listed company 35 -
Dividends paid (757) (672)
Exercise of options from treasury reserve (14) 23
Treasury shares purchased (243) (215)
Reallocation of interest rate swap costs from subsidiary (96) -
Shares option reserve movement 185 90
Net increase decrease in shareholders’ funds (1,602) (1,362)
Shareholders’ funds at 1 November 2009 18,538 19,900
Shareholders’ funds at 31 October 2010 16,936 18,538
13 RELATED PARTY DISCLOSURES
As the parent company of a wholly-owned group, the Company is exempt from the requirements of FRS 8 to disclose 
transactions with other members of the Group headed by Idox plc.
As in the prior year, no transactions with other related parties, including key management personnel, were undertaken 
with the company.
 
14 POST BALANCE SHEET EVENTS
The Group signed a short term working capital banking facility of £6m on 10 December 2010. 
On 13 December 2010, the Group announced the acquisition of McLaren Software Group Limited for £1.0m in cash.  
McLaren is a leading supplier of engineering document management and control applications serving many leading 
international companies in industries including oil & gas, mining, utilities, pharmaceuticals and transportation. 
McLaren had revenues of £6.4m for the year ended 31 December 2009, with an operating profit of £0.4m and a loss 
before taxation of £1m resulting from the pre-acquisition capital structure.  Net liabilities at completion are expected to 
be £1.3m.
The acquisition of McLaren extends Idox’s core skills in planning and building documents management into the related 
area of engineering drawings. This will provide Idox with the opportunity of broadening its activities into complementary 
UK and international markets in both the private and public sector, particularly where the management of complex 
engineering systems interacts with regulatory oversight.
Full IFRS 3(R) disclosure has not been included in the financial statements due to the timing of the acquisition. Idox plc Annual Report and Accounts 2010 70
For the year ended 31 October 2010
Idox Plc Software and Services at a Glance
transforming their ability to access and 
manage information & knowledge, 
documents & content, business 
processes & workflow as well as 
connecting directly with the citizen via 
the web.
From standalone solutions for 
individual functions through to 
integrated corporate solutions, the 
Company’s market leading Idox, 
software
Idox is a major supplier of software 
solutions and information services 
to the public sector and the leading 
applications provider to local 
government for core functions relating 
to land, people and property. Over 
90% of UK local authorities are 
customers.  Idox plc is committed to 
providing public-sector organisations 
with solutions which deliver real 
efficiency savings benefits whilst 
TFPL Intelligent Resources provides 
recruitment services throughout the 
UK and internationally.
TFPL’s services include executive 
search and selection,  permanent, 
interim and contract placement, 
recruitment advertising and career 
management.   Working across all 
sectors from investment banking 
through to the public sector, TFPL  
The Idox Information Solutions Division 
is an amalgamation of j4b Software 
& Publishing Limited, the Idox 
Information Service, GRANTfinder Ltd 
and TFPL Consulting, and provides 
information management, web 
development and online publishing 
services.
It specialises in the design and 
development of online systems to 
support economic development 
recruitment
information solutions
Uniform and Plantech portfolio delivers 
improved data quality, stream-lined 
information-sharing, enhanced 
employee productivity and increased 
responsiveness to public service 
demands.
Idox continues to work in partnership 
with its local authority clients extending 
its Managed Services expertise. 
UKPlanning delivers planning & 
and encompasses editorial teams 
who are expert in researching and 
structuring web content. This includes 
major platform developments for UK 
government clients, including the 
voluntary sector finance portal Funding 
Central.  The division has pioneered 
the development of innovation and 
knowledge transfer portals across 
Europe, working with the European 
Commission, and national and 
regional governments in Ireland and 
the UK. 
Bringing together the collective 
strengths of the former companies 
j4b Software & Publishing Limited 
and GRANTfinder Ltd, the Division 
is building its reputation as Europe’s 
leading publisher of grants and policy 
support information.  It offers a suite of 
funding tools to help clients maximise 
their fundraising activities, with plans 
Intelligent Resources places people 
into specialist roles in:
Insight and Intelligence >
Knowledge & Information  >
Management 
Records Management >
Publishing & Content Provision >
With the boundaries between analytical 
disciplines, information management, 
operational processes and information 
technology becoming more blurred, 
we specialise in finding the right people 
that bridge these multidisciplinary roles.
TFPL’s training service offers a range 
of public access and bespoke training 
solutions, providing you with a flexible 
and cost effective approach to training. Idox plc Annual Report and Accounts 2010 71
recruitment cont’d
information solutions cont’d
building control departments with a 
cost effective, efficient and risk free 
means of administering Planning and 
similar applications. The expertise of 
our staff is valued by customers who 
engage Idox to manage their solutions 
by hosted, remote or on-site managed 
services.
The acquisition of Strand Electoral 
Management Services Ltd is an 
important strategic addition for Idox, 
enabling it to enter another very 
active local government market with 
a strong suite of products and good 
opportunities for growth through 
cross selling. Strand Electoral 
Management Services Ltd, is one of 
the UK’s leading providers of electoral 
management solutions, supplying 116 
local authorities that cover a voting 
population of 13 million people.
The post financial year-end acquisition 
of McLaren Software, a Glasgow-
based company with a presence in 
Germany and Houston, Texas, marks 
a step in the Group’s strategy to 
provide its document management 
services to broader public and private 
markets in the UK and internationally. 
The acquisition broadens the Group’s 
footprint into McLaren’s industrial 
markets in pharmaceuticals, oil & gas.
to grow through the provision of 
training for organisations wishing to 
source funding.
The Idox Information Service is the 
most comprehensive information 
service on all aspects of policy 
and practice in local government. 
Combined with new policy information 
products in development, there 
are exciting prospects in a rapidly 
changing policy landscape.
TFPL Consultancy delivers high-
value and cost effective advisory 
services to clients in all areas of 
knowledge, information, library, 
records management and information 
architecture. In addition we support 
clients with the design, deployment 
and roll-out of solutions using 
SharePoint on an application and 
enterprise level.
Our wide range of courses include:
Knowledge management >
Information architecture & taxonomy >
Content & records management >
Records management >
Social computing >
SharePoint. >
software cont’d Idox plc Annual Report and Accounts 2010 72
For the year ended 31 October 2010
Secretary and Registered Office:
Nominated Advisor & Joint Broker:
Joint Broker:
Auditors:
Corporate Solicitors:
Registrars:
Company Registration Number:
Financial Calendar:
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Annual General Meeting - 3 March 2011
Announcement of 2011 Interim Results - July 2011
Announcement of 2011 Annual Report - December 2011
Company Information  2nd Floor, 160 Queen Victoria Street, London, EC4V 4BF
T +44 (0) 870 333 7101
F   +44 (0) 870 333 7131
E info@idoxplc.com
 www.idoxplc.com
Idox plc