iSOFT GROUP PLC 
2003 ANNUAL REPORT AND ACCOUNTS
WORLD CLASS 
HEALTHCARE APPLICATIONS CONTENTS
Financial Headlines 01
Report Summary 02
About iSOFT 04
Chairman’s Statement 06
Chief Executive’s Report 10
Operating Review 14
Financial Review 20
Report of the Directors 24
Corporate Governance Report 30
Remuneration Report 36
Audit Committee Report 42
Independent Auditors’ Report 44
Financial Statements 45
Five Year Summary 72
Company Information 74
Notable Dates Inside back cover FINANCIAL HEADLINES
PAGE ONE
01
In the year ended 30 April 2003...
_ turnover up 52.2% to £91.5m
_ operating profit increased 59.3% to £21.0m
_ operating margin improved to 22.9% from 21.9%
_ underlying earnings per share* increased
43.9% to 15.09 pence
_ net cash inflow from operating activities totalled
£23.5m*, representing normalised profit before
tax conversion of 100.0%
* after adding back amortisation of goodwill
Year ended 30 April 2003
£m
Turnover 91.5
Operating profit 21.0
Profit before tax* 23.5
Earnings per share* 15.09p
Year ended 30 April 2002
£m
Turnover 60.1
Operating profit 13.1
Profit before tax* 15.4
Earnings per share* 10.49p
our shareholders have come to
expect strong financial
performance from the business SECTION ONE_PAGE TWO
02
REPORT SUMMARY SECTION ONE_PAGE THREE
03
REPORT SUMMARY
an at a glance summary of the
highlights from the iSOFT 2003
Annual Report and Accounts
2003 has shown that iSOFT… 
_ is dedicated to healthcare and proud to be at the very forefront of 
the new revolution in healthcare information management.  Page 05
_ is able to deliver an impressive account of the strength of the
business evidenced by significant growth in sales, profits, cash
generation and earnings per share.  Page 07
_ is concerned with delivering good performance for our shareholders
while demonstrating that the business is responsibly and consistently
managed.  Page 09
_ has executed the business strategy well over the last year, and has
established a strong platform for continuing success.  Page 11
_ has benefited from the decision to start up a dedicated offshore
development subsidiary that contributes significantly to maintaining 
our application leadership position.  Page 16
_ has underlined the quality of its profit generation with consistently
strong cash generation.  Page 22
_ has strengthened the Group balance sheet significantly over the
course of the year.  Page 23 ABOUT iSOFT
SECTION TWO_PAGE FOUR
04 ABOUT iSOFT
SECTION TWO_PAGE FIVE
iSOFT has a clear focus on developing
world class software applications for
healthcare delivery organisations
05
a UK based software applications company
dedicated to healthcare, and proud to be at the very forefront of the new 
revolution in healthcare information management.  iSOFT product development 
is characterised by an understanding of our markets and an innovative spirit 
that ensures our customers keep pace with technological advances and 
service initiatives. 
with our primary focus on developing
applications for the reforming 
healthcare economies
we are able to respond in a timely and appropriate manner in an ever changing and
increasingly dynamic landscape.  Crucially, this responsiveness is underpinned by a
dedicated industrial strength development organisation.
today iSOFT offers a whole new holistic
healthcare information solution
supporting a fully loaded care record and associated application services. Extending
the reach of healthcare information to support clinicians at the point of care and
empower the citizen as a consumer of healthcare services, we have created an
information systems architecture for service integration which will bring benefits to
clinicians, business managers and patients alike.
already more than a thousand healthcare
institutions in nine countries
rely upon iSOFT applications to manage patient information and drive improved care
processes.  Whatever the service location, wherever the patient, in hospital or in the
community, iSOFT will be there, helping to deliver dynamic new models of care. CHAIRMAN’S STATEMENT
SECTION THREE_PAGE SIX
06 CHAIRMAN’S STATEMENT
SECTION THREE_PAGE SEVEN
in the year ended 30 April 2003,
we again delivered strong 
organic growth, an important and
constant feature of our business
07
Another excellent financial year
The year ended 30 April 2003 
continued the track record of excellent
performance by iSOFT Group plc.  
Our shareholders have come to
expect strong strategic, operational
and financial performance from the
business, and I am pleased to
announce that we have delivered
against each of these expectations.  
Contained in this Annual Report is 
an impressive account of the strength of
the iSOFT business evidenced by the
significant growth in sales, profits, cash
generation and earnings per share.  
It is particularly satisfying to report that
the excellent financial performance was
the result of successful sales activity
and delivery across all the geographies
that we target with our innovative
software applications for healthcare
delivery organisations.
A winning strategy
iSOFT Group plc was listed on the
London Stock Exchange in July 2000
with a clearly defined business strategy.
Our consistent focus has been on 
the development of world class
software application systems, which
address fully the administrative and
clinical information management
requirements of healthcare 
provider organisations. 
In modern healthcare economies the
rate of change in information system
requirements has been dramatic and
dynamic.  Governments are responding
to the needs of clinicians by investing 
to make information available at the
point of care through the deployment 
of new software applications,
broadband networks and mobile
computing devices.
We have stuck to our strategy resolutely
because of our confidence that it
represents a close fit with developments
in our markets and the requirements of
our customers.  As healthcare looks to
adopt best practice from other sectors
of the economy, the move towards
disseminating information through the
Application Service Provider (ASP)
model will become more apparent.
iSOFT is well positioned for this
development as we target our expertise
towards producing application content
for the larger service organisations
intending ASP offerings.
We look forward with enthusiasm 
and are confident that our strategy 
will continue to serve us well and 
deliver value for our shareholders 
and customers. SECTION THREE_PAGE EIGHT
08
CHAIRMAN’S STATEMENT
iSOFT - an integrated business
In the year ended 30 April 2003, we
again delivered strong organic growth,
an important and constant feature of our
business.  Acquisitions have been
selective and shrewd.  
The primary rationale for acquisition
in the iSOFT business model is to
obtain direct access to an enlarged
customer base for our compelling
software application suite.  
The logic in this approach means that
we can integrate acquired businesses
quickly under a single strategy and a
unified product portfolio.
In our last Annual Report I was able to
announce the acquisition of the
healthcare systems business interests of
Northgate Information Solutions plc.  I
am pleased to confirm that the process
of integration is now complete and the
combined skills of an enlarged
workforce has ensured strong,
successful trading in the acquired
customer base.  During the year we also
acquired Revive Group Limited, the
leading United Kingdom exponent of 
e-booking solutions.
Acquisitions will continue to be a
feature of our business model but they
will be limited to few, highly selective,
examples that are consistent with our
focus on being the leading application
content provider in our chosen markets.
Board development
As announced at the time of our interim
results last December, the next stage in
the development of the successful
iSOFT business will involve controlled
geographic expansion and an increased
focus on product strategy to open new
markets.  The Board recognises that
these challenges require a full-time
commitment from a member of the
Board and I am delighted to confirm that
Patrick Cryne, iSOFT’s current Chief
Executive Officer, will take on the
executive role of Director, Corporate
Development, to establish iSOFT as the
global leader in health systems.
As founder of iSOFT, it is Patrick’s
entrepreneurial talent, business acumen,
and personal drive that have shaped the
iSOFT business as it is today.  I am
delighted that these exceptional skills
will now be targeted toward the next
phase of the Group’s development.  
I would like to take this opportunity to
thank Patrick on behalf of both the
Board and the staff of iSOFT for his
contribution to date, and I look forward
to continuing working together as we
move forward in the pursuit of the
exciting new expectations we set 
for ourselves.  SECTION THREE_PAGE NINE
09
CHAIRMAN’S STATEMENT
Tim Whiston, the current Group Finance
Director, will succeed Patrick as Chief
Executive Officer.  Tim’s succession will
come as no surprise to our investors,
customers, business partners and staff.
He is a natural successor with an
excellent knowledge of the iSOFT Group
business.  The Board is delighted that
we are able to promote from within for
these key roles.  As stated in our Interim
Report, these changes will take effect
from this year’s AGM in July.  At this
time the Board will announce the new
Group Finance Director.
I am also pleased to announce that on
14 March 2003, Rene Kern was
appointed as a non-executive director to
the Board.  Rene is a senior executive
with General Atlantic Partners who, at
the balance sheet date, owned 12.8% of
the shares of iSOFT Group plc. 
Our management and staff
I am proud to say that in our workforce
we have some of the computer
industry’s best technologists and
software developers.  
This strong position is complemented
by a high order of professionalism 
and commitment across the 
iSOFT organisation.
The achievement of this year’s 
growth from the high base set in
previous years is testimony to the
resourcefulness and tenacity of 
our staff and the management team.  
I thank them all for their commitment
to the ongoing success of
the business.
Governance
Over the last few years, but more
particularly over the year ended 
30 April 2003, we have sought to
demonstrate that good governance 
is a high priority for our business.  
We continue to modify and improve 
our management of the business by
reference to best practice.
Included within this year’s Annual Report
we have our most comprehensive report
to date on governance within iSOFT.
We are concerned not only to 
deliver good performance for 
our shareholders but also to give
confidence that the business is
responsibly and consistently 
well managed.
The fact that iSOFT Group plc is a
quality business with strong
fundamentals gives me great confidence
that the success achieved to date will
continue to be exhibited into the future
for the benefit of our shareholders,
customers and staff.
Roger Dickens
Executive Chairman
iSOFT Group plc is a quality
business with strong
fundamentals SECTION FOUR_PAGE TEN
10
CHIEF EXECUTIVE’S
REPORT SECTION FOUR_PAGE ELEVEN
we have executed on our strategy well 
over the last year and our positioning
against government stimulated market
developments is very promising
11
CHIEF EXECUTIVE’S
REPORT
Market conditions 
The year ended 30 April 2003 has been
a very good one for our business.
Although market conditions have been
competitive, our focus on producing
modern, highly differentiated software
applications has ensured that we have
maintained a high hit rate in public
procurement programmes and we have
continued to sell strongly back into our
existing customer base.
In our target markets and most
notably in the United Kingdom,
Ireland and Australasia, national
governments have shown a
preparedness to invest heavily in
modern application systems and
broadband networks to provide
information to improve the quality 
of healthcare services.
Our strategy of focusing on being a
leading application content provider,
fitted and continues to fit well with the
procurement plans of these
governments.  The published
programme of investment in the United
Kingdom for example, involves
separating the roles of Application
Service Provider (ASP) and application
content provider with the former being
the province of the large service
organisations and the latter being the
domain of the innovative health systems
software specialists, such as iSOFT.
This approach is being emulated in
other countries where healthcare
modernisation and reform is a high
priority for government.
We have executed on our strategy well
over the last year and our positioning
against government stimulated market
developments is very promising. SECTION FOUR_PAGE TWELVE
12
CHIEF EXECUTIVE’S
REPORT
Our financial performance 
for the year 
The market conditions described suit
our business model and that is reflected
in iSOFT’s results for the financial year
ended 30 April 2003.  
Our turnover for the year grew to
£91.5m representing an overall
growth rate of 52.2% over the
previous period, of which 31.2%
represented organic growth from
existing business operations.
Profitability also showed strong
progression with operating profit for 
the year ended 30 April 2003 of
£21.0m, an increase of 59.3% over the
previous year.  Operating profit margins
were increased to 22.9% from 21.9%
despite strong competition and
notwithstanding the amounts expended
during the year in the development 
of our leading application product
portfolio and the enhancement of our
operating structures.
Product development
Over the past year we have continued
to invest heavily in our application
software portfolio for healthcare
provider organisations.  Approximately
£7.9m was invested in product
development representing 8.6% 
of turnover for the year ended 
30 April 2003.  
Our relationship with Microsoft
Corporation continues to strengthen
and they remain our most important
technology partner.  
We are acknowledged by Microsoft
as a leading developer in .NET
architectures and continue to be a
launch partner for their step change
technology releases.
During the year we worked closely with
Microsoft to ensure that our
applications can be packaged up for
sale to the third party service
organisations who in turn offer
application services for consumption 
by end user customers.  This has
involved re-engineering a number of our
applications and the completion of 
this programme was announced in 
March 2003 at the HC2003 Conference
in Harrogate.  The resultant i-series of
applications has been well received and
recognised in our customer base and
our markets generally as the most 
modern, technology relevant suite of
health information system solutions
available today.
In addition, I am delighted to report that
since the balance sheet date, we have
announced a joint marketing and
development agreement with Eclipsys
Corporation of the United States. 
iSOFT purchased the United Kingdom
and Australian operations of Eclipsys in
May 2001 and this new agreement
represents the continuation of a
relationship which is strategically
important for iSOFT as it allows us to
bring the best of North American
thinking into the clinical components of
our applications, where appropriate. SECTION FOUR_PAGE THIRTEEN
13
CHIEF EXECUTIVE’S
REPORT
Partnering with service organisations
The scale of information technology
modernisation planned for healthcare
providers in the United Kingdom is
unprecedented and is being emulated in
other reforming healthcare economies.
As the United Kingdom and other
governments look to introduce new
national information services to support
improvements in healthcare, including
an electronic health record for each
citizen, electronic booking of
appointments and electronic transfer of
prescriptions, it is clear that the large
service organisations have a key
management role to play.
At iSOFT we were early to recognise
that offering packaged applications
in support of the provision of new
healthcare information services 
was a natural development of our
business strategy.  Over the last 
year, we have spent a considerable
amount of time working with large
service organisations that wish to
invest in becoming ASPs to the
healthcare sector.  
The product of this work is that our
software has been adopted as the first
choice applications suite for many of
the leading service organisations that
have announced their intention to be
such ASPs.  
This is further recognition of our
leadership as an application content
provider in the healthcare market.
Outlook 
As described at the outset, market
conditions are very dynamic.  At iSOFT,
we welcome the extent and the pace of
this change as it represents opportunity
for further growth of our business as we
make progress at the expense of those
competitors less able to respond.  
In future, the financial value of
procurements is likely to rise in all our
markets as governments seek to
progress modernisation of information
technology more rapidly.  With 
scaled-up procurements comes the
need for large service provider
organisations to adopt the role of 
prime contractor and provide the
particular expertise and resource
required to manage and deliver 
projects of this size. 
iSOFT is well positioned to continue
winning the application component 
of major contracts where the
decision criteria involve the issues 
of innovation, relevance of
application, development capacity,
market presence, track record and
financial standing.  
Working with large service organisations
will also be characterised by effective
risk sharing so that our exposure is
confined to those areas where we have
shown we can manage well.
The outlook for iSOFT in these changing
times is, therefore, very positive.
Patrick Cryne
Chief Executive Officer
we welcome the extent and the pace
of change as it represents opportunity
for growth at the expense of those
less able to respond SECTION FIVE_PAGE FOURTEEN
14
OPERATING REVIEW SECTION FIVE_PAGE FIFTEEN
the year ended 30 April 2003 presented 
no significant barriers to impede our growth
or reputation as a provider of robust and
quality healthcare applications
15
OPERATING REVIEW
Overview
Demand for modern healthcare
software applications in the United
Kingdom, Ireland and Australasia
remained buoyant throughout the year. 
I am pleased to report that in all our
chosen target markets our success
in procurements for major hospital
system replacements and upgrades
resulted in increased market shares
for the Group.
Business review
The past year has been very exciting for
iSOFT.  In my last Operating Review in
2002, I commented that "I see no
immediate barriers to the continuation
of our operational success" and indeed
the year ended 30 April 2003 presented
no significant barriers to impede our
revenue growth or our growing
reputation as a provider of robust and
quality healthcare applications with a
52.2% increase in overall revenues year
on year.  Europe and Asia Pacific, our
two main geographical regions, both
showed significant revenue growth with
Europe increasing by 45.8% and Asia
Pacific by 87.2%.
The iSOFT proposition has been
carefully crafted over recent years with
a dedicated focus around the provision
of leading applications and, where
required, the attendant services for
system deployment and support.  This
strategy has positioned the business
strongly for the procurement reforms
currently underway in England.  The
comprehensive NHS National
Programme for Information Technology
in England is in full swing with the
awarding of the first of five regional
Local Service Provider contracts
expected in October 2003. 
iSOFT is positioned well as an
application content provider with 
its leading edge technology solution
complemented by an existing user
base already operating 
modern solutions. 
Similar NHS IT enhancement
programmes are envisaged for Scotland
and Wales and I am confident in our
proposition and positioning in relation to
IT modernisation for these markets.
We have continued to develop our
proposition for the healthcare
applications market in Ireland and are
now in the position of preferred 
supplier as the government proceeds
with the rollout of its healthcare IT
modernisation programme. SECTION FIVE_PAGE SIXTEEN
16
OPERATING REVIEW
I am also pleased to report that iSOFT
secured its first customer in China
during the year.  This win represents a
significant development in the
execution of the iSOFT strategy which
includes controlled geographical
expansion into new markets where
demand for the iSOFT application
exists.  There are plans to build our 
Asia Pacific business interests further
during 2004. 
In the Australian market, where we
had already secured a dominant
market share, demand remained
buoyant with a number of significant
new long-term contracts signed
during the year. 
Business integration
The acquisition of the healthcare
systems business of Northgate
Information Solutions plc on 
31 July 2002 was followed by a rapid
business integration programme that
yielded excellent results for iSOFT.  The
results of the acquired business met our
expectations in full, with £11.4m of
turnover and £2.6m of operating profit
contributed to the Group’s overall
performance for the year. 
On the 28 November 2002 we acquired
Revive Group Limited, the leading
supplier of e-booking systems in the
United Kingdom.  This acquisition
provides iSOFT with a strong position in
an area of the market that has been
singled out as a key component of the
NHS IT strategy.
In addition to the integration of our
major acquisitions, we have
continued to improve internal
methodologies for implementing 
our applications and supporting 
our customers. 
Across the spectrum of our customer
base, governments in all the
modernising healthcare economies are
encouraging closer co-operation
between service organisations and
application content companies.  This
development complements our move
toward the sale of ‘packaged solutions’
for delivery and support by third party
systems integrators, as either a prime
contractor or distributor, and fits well
with the provision of modern application
systems under current procurement and
deployment models. 
During the year we have achieved an
unprecedented number of successful
new implementations across our
markets, providing us with an excellent
platform for the further refinement of
our delivery model with our partner
service organisations.
A commitment to research and
development 
During 2003, research and development
expenditure increased from £5.3m 
to £7.9m. 
The continuing expansion of our
dedicated application manufacturing
centre in Chennai, India, gives us 
a major competitive advantage in
bringing leading edge technology
solutions to market with
unprecedented speed in a highly
efficient and competitively 
costed manner. 
Our research-to-application delivery
cycle time is unrivalled and the decision
to start up a dedicated offshore
development subsidiary is contributing
significantly to maintaining our
application leadership position. SECTION FIVE_PAGE SEVENTEEN
17
during the year we achieved
an unprecedented number
of successful new
implementations
OPERATING REVIEW
Application design work continues to be
undertaken by staff located in our core
markets, notably the United Kingdom
and Australia, but software manufacture
has been transferred increasingly to our
Indian operation in Chennai.  
Our commitment to the value of
application development is underlined
by the average number of 233 staff
directly employed in the research and
development activities during the year,
representing approximately 40% of the
Group’s total headcount.  We are
planning to continue growing our
capacity in Chennai over the coming
years and, in doing so, increase the
proportion of the business resources
dedicated to application innovation 
and manufacture.
In March 2003, we announced plans to
migrate our functionality-rich application
portfolio onto a common platform
known as LORENZO. 
LORENZO encompasses all the
strength of the existing application
family whilst delivering ever greater
processing power, functionality and
utility for those seeking modern
healthcare application solutions
tailored to the requirements of the
reforming healthcare economy.
Our customers and staff
These are times of great change for our
customers.  The heightened
expectations of government and
citizens as the consumers of healthcare
services mean increasing demands on
the services provided by healthcare
organisations.  In turn, healthcare
providers place greater emphasis on
their information management systems.
We are grateful to those organisations
that have placed their trust in us to
meet their strategic and operational
information requirements.
The majority of our existing customers
are contracted with us on multi-year
arrangements in order to support 
their strategic information 
systems requirements.  
We are adept at horizon watching 
to ensure that emerging business needs
are incorporated into our applications
early, in line with new technology
innovations that provide opportunities
for improved function and utility.
We also recognise the value of the
domain expertise possessed by our
customers in terms of healthcare
business processes and clinical best
practice and seek to form collaborative
working relationships with them.  We
have spent more time and significant
resources over the past year to improve
our relationship with our customers
through strengthening our service
delivery and user group support.  The
competency, ingenuity and commitment
of our staff is also crucial to the
success of these collaborations.
We have been very pleased with 
the performance by many of the 
key individuals in the iSOFT team 
this year.  In a dynamic and changing
business, we have been able to
harness the enthusiasm, flexibility
and ability of our staff to move 
our business positioning 
forward significantly. SECTION FIVE_PAGE EIGHTEEN
18
OPERATING REVIEW
The Group’s share option schemes are
used as a motivator for key individuals
at all levels in the business.  At the year
end, over 7.2m share options had been
issued to 79 staff, some 12.8% of the
total workforce employed at the time.
Our July 2002 Sharesave Scheme has
been widely participated in, with 53%
of eligible employees in iSOFT’s 
world-wide locations joining the
Scheme.  The success of the Scheme
was recognised by the receipt of two
ProShare Awards in December 2002 as
well as being highly commended at the
Employee Benefits Awards ceremony in
April 2003.  We anticipate that a new
2003 Scheme will result in even wider
employee equity participation.
It is my belief that iSOFT’s operational
management and implementation
personnel are unparalleled in their
abilities and commitment.  These
attributes are shared by their peers
throughout the organisation and are key
factors in the successful integration of
the new acquisitions. 
Customer feedback during the year
has been very positive regarding our
ability to meet demanding project
delivery schedules on time, to
specification and to the required
quality benchmark.
We are continuing to enhance our
customer support services.  Our
i.ASSIST system is a core element of
our service offering and we plan to
enhance our remote customer support
functionality still further in 2003. 
Over the year our workforce increased
to an average of 580 employees
compared to 430 in 2002 and, with the
closing employee headcount at 616, 
we remain committed to expanding 
our human capital.  iSOFT is a
meritocracy and rewards are 
provided commensurate with an
individual’s contribution to the 
Group’s overall results.
A key measure of performance
monitored by the Board is staff turnover
and we are particularly pleased with
maintaining a low staff turnover ratio of
13%, a statistic where we are
consistently well below industry norms.
It is also important to note that our
calculation of the ratio includes the
effect of integration activities
undertaken in the year with respect to
acquisitions made.  I believe that this
result is a clear example of the exciting,
challenging and rewarding environment
we provide to all our employees.  SECTION FIVE_PAGE NINETEEN
19
OPERATING REVIEW
Partnerships
We have a continued focus on strong
technology themes and I am delighted
with the ongoing development of our
close relationship with Microsoft during
2003.  The value of this relationship was
best evidenced in the year by the
selection of iSOFT as one of the 30
global launch partners, and the only
European software partner, chosen 
by Microsoft for the Windows XP Tablet
PC edition operating system launch. 
The strength of our relationship 
with Microsoft is also evidenced 
by our recent commitment to 
Microsoft .NET architectures as the
technological basis for our latest
generation of products.
On a wider partnership theme, iSOFT’s
approach to business is to view our
chosen activities as a series of
partnerships with customers,
complementary suppliers and local
employees.  Delivering the integrated
care record solution and associated
application services is something 
that is best done with a truly
collaborative approach. 
iSOFT’s clear business strategy 
and focus on the healthcare market,
together with an industrial strength
development organisation make us
the leading applications provider in
the field and, we believe, the
company best placed to deliver, in
our chosen markets, against the
demanding targets set by the modern
healthcare economies of the world.
Through our partnerships we will
support the realisation of significant
efficiency improvements, we will
revolutionise the tools that professionals
use to deliver healthcare services and 
help change the way that patients
experience the journey of care.
In doing so, iSOFT will play an
important role in the reform of the
modernising healthcare economies 
over the coming years.
Steve Graham
Chief Operating Officer
delivering the integrated care
record solution is something that
is best done with a truly
collaborative approach SECTION SIX_PAGE TWENTY
20
FINANCIAL REVIEW SECTION SIX_PAGE TWENTY ONE
21
the quality of the profit generation of the
Group is underlined by the consistently
strong cash generation from the
operating results
FINANCIAL REVIEW
Trading results
In the year ended 30 April 2003, the
Group delivered profit before tax growth
of 55.0% to £18.9m on turnover of
£91.5m, a profit before tax margin of
20.6% (2002: 20.3%).  Adjusting for the
amortisation charge of £4.6m, the
normalised profit before tax was
£23.5m (2002: £15.4m), a margin of
25.7% (2002: 25.7%).
The continuing positive profit 
trend is derived from the sale of the
iSOFT applications to both new and
existing customers in core markets
and from a number of new sales 
into emerging markets. 
Following a consistent strategy, iSOFT’s
market share has increased with new
business wins and through the strategic
acquisition of customer base.
Underlying organic growth in turnover
was 31.2%.
Cash flow
The quality of the profit generation of
the Group is underlined by the
consistently strong cash generation
from the operating results.  For 2003,
the Group achieved a normalised profit
before tax cash conversion ratio of
100.0% (2002: 109.4%) generating a
net cash inflow from operating activities
of £23.5m (2002: £16.9m).
Investment by General 
Atlantic Partners
On 3 March 2003, iSOFT announced 
an important strategic investment in 
the company by General Atlantic
Partners.  As a result of this investment,
5.9m new ordinary shares were 
issued at a price of 215 pence per
share raising cash proceeds for the
company after associated costs of
issue of £12.4m. 
The investment by General Atlantic
Partners represented a significant
endorsement of the strength of the
iSOFT management, product
proposition, business strategy and
market positioning.  SECTION SIX_PAGE TWENTY TWO
22
FINANCIAL REVIEW
Acquisitions
On 31 July 2002, the Group acquired
the healthcare systems business of
Northgate Information Solutions plc for
£33.5m.  Goodwill recorded on the
balance sheet in respect of this
acquisition was £31.4m.
The operational integration was
expeditiously and successfully
executed.  In the period since
acquisition, the Northgate business
interests acquired contributed
£11.4m of turnover and £2.6m of
operating profit to the overall 
Group results.
On 28 November 2002 the Group
acquired Revive Group Limited, the
leading supplier of e-booking systems
to the United Kingdom’s NHS for a
maximum consideration of £4.1m.  Of
this maximum consideration, £3.1m is
deferred and is contingent on the
achievement of certain financial targets
over the next 3 years.  The £1.0m
consideration paid in the year was
satisfied by £0.5m in cash and the issue
of 211,417 new ordinary shares.  In the
period since acquisition, Revive
contributed £1.2m of turnover and
£0.4m of operating profit to the 2003
Group results.
Interest
The net interest payable in the year of
£2.1m (2002: £1.0m) related principally
to the acquisition debt funding
outstanding during the year.  The
increase in interest payable in
comparison with the previous year is
due to the additional 5 year term loan of
£30.0m raised to finance the Northgate
acquisition.  At the balance sheet date
the Group’s net debt position was
£2.9m (2002 net funds: £3.7m).
Taxation
The increase in the effective tax rate for
the year to 29.1% (2002: 25.4%) is due
primarily to the fact that in 2002
brought forward trading losses were
utilised following the acquisition of ACT
Medisys Limited in February 2001.
Earnings per share
Basic earnings per share were 11.17
pence (2002: 7.69p) and diluted
earnings per share calculated in
accordance with FRS14 were 11.08
pence (2002: 7.61p).  Basic and diluted
earnings per share were affected by the
new shares issued during the year.
Underlying earnings per share,
representing basic earnings per
share before amortisation of 
goodwill of 3.92 pence (2002: 2.80p)
increased by 43.9% to 15.09 pence
per share (2002: 10.49p). 
Dividends
The directors have proposed a final
dividend of 1.2 pence per share 
(2002: 0.8p).  Combined with the interim
dividend of 0.6 pence per share, this
gives a total dividend payment for the
year of 1.8 pence per share 
(2002: 1.2p).  The final proposed
dividend, if approved at the Annual
General Meeting, will be paid on 
31 July 2003 to shareholders on the
register on 4 July 2003. SECTION SIX_PAGE TWENTY THREE
23
the Group balance sheet has
strengthened significantly over the
course of the year with closing net
assets of £73.3m
FINANCIAL REVIEW
Balance sheet
The Group balance sheet has
strengthened significantly over the
course of the year with closing net
assets of £73.3m compared with an
opening net asset position of £48.7m.
The net debt position is £2.9m 
(2002: net funds £3.7m), with cash
balances of £45.5m (2002: £23.7m) at
the balance sheet date. 
The net increases in current assets and
current liabilities relate primarily to the
trading performance of the business
during the year.  
The net current assets of £32.3m
(2002: £9.1m) include £14.3m (2002:
£8.4m) of deferred income held at the
balance sheet date. Adjusting for this
deferral, the underlying net current
asset position totalled £46.6m 
(2002: £17.5m). 
Funding
The cash conversion of profits remains
a key performance objective for the
Group.  Cash balances at the end of the
year totalled £45.5m, up from £23.7m
last year.  At the balance sheet date the
Group had a total credit facility in place
of £55.5m and net debt of only £2.9m. 
The facilities are structured to 
suit the Group’s short and medium term
cash needs with a combined revolving
credit facility and overdraft of £30.0m
and a fixed term loan of £25.5m. 
Cash deposits are managed to
maximise interest receipts whilst
maintaining sufficient flexibility.
Exposure to foreign exchange
fluctuations is monitored on an ongoing
basis with balances maintained in
foreign currencies to match planned
expenditure where appropriate.  At the
balance sheet date there was no
material exposure to foreign exchange
risk.  The shares issued during the 
year raised net cash of £12.4m for 
the Group, being £12.7m less
associated expenses. 
The net cash raised added 
further strength to the balance 
sheet, ensuring that appropriate
resources are available to support
the continuing growth of the
business either organically or 
by strategic investment. 
Tim Whiston
Group Finance Director SECTION SEVEN_PAGE TWENTY FOUR
REPORT OF THE DIRECTORS
24 SECTION SEVEN_PAGE TWENTY FIVE
a software products business,
licensing proven application
software to healthcare provider
organisations
25
REPORT OF THE DIRECTORS
Principal activities
The Group is a software products
business, licensing proven application
software to healthcare provider
organisations from an established
product portfolio. It also provides
application product packaging,
development, installation, system
configuration, training and customer
support services in respect 
of its applications.
Business review and future
developments
The Group will continue to enjoy growth
for the foreseeable future.  The
Chairman’s Statement on page 07, 
the Chief Executive’s Report on 
page 11, the Operating Review on 
page 15 and the Financial Review on
page 21 provide further details of the
business during the year and of 
future developments.
Results and dividends
The results of the Group are set out in
the consolidated profit and loss account
on page 47.  The directors recommend
the payment of a final dividend of
£1.5m to the holders of the ordinary
shares, which together with the interim
dividend of £0.7m, gives a total equity
dividend payment for the year of £2.2m.
After payment of dividends, the retained
profit for the financial year was £11.1m.  SECTION SEVEN_PAGE TWENTY SIX
26
REPORT OF THE DIRECTORS
Directors
Details of the directors of the Company
serving during the year were as follows:
Roger Dickens (55), Executive
Chairman, was appointed to the Board
of iSOFT Group plc on 28 April 1999.
He is currently non-executive Chairman
of West Bromwich Building Society and
a non-executive director of Carillion plc.
Patrick Cryne (52), Chief Executive
Officer, was appointed to the Board of
iSOFT Group plc on 28 April 1999.  It
was announced in November 2002 that
he will take on the executive role of
Director, Corporate Development from
23 July 2003.
Tim Whiston (35), Group Finance
Director, was appointed to the Board of
iSOFT Group plc on 14 April 2000 and
has acted as Company Secretary since
that date.  It was announced in
November 2002 that he will be
appointed to Chief Executive Officer
from 23 July 2003.
Steve Graham (39), Chief Operating
Officer, was appointed to the Board of
iSOFT Group plc on 28 April 1999.
Digby Jones (47), Senior non-executive
director*, was appointed to the Board on
19 May 2000.  He is Director General of
the Confederation of British Industry
(CBI), a director of Business in the
Community and Chairman of etrinsic plc.
Eurfyl ap Gwilym (58), Non-executive
director*, was appointed to the Board
on 19 May 2000.  He is a director of
Principality Building Society and was
formerly a director of The Terence
Chapman Group plc.
Geoff White (50), Non-executive
director*, was appointed to the Board
on 19 May 2000.  He is Chairman of
SMP Group and Chairman of Tekdata
Group Limited.  He was formerly Chief
Executive of Pressac plc and a 
non-executive director of Derby City
NHS Trust.
Rene Kern (39), Non-executive director
was appointed to the Board on 
14 March 2003. He is a senior executive
with General Atlantic Partners who at
the balance sheet date owned 12.8% of
the shares of iSOFT Group plc.
* Members of the Group’s Audit Committee and 
Appointments and Remuneration Committee
throughout the year.
Graham Wilson (39), resigned on 
5 July 2002.
The Board considers that Digby Jones,
Eurfyl ap Gwilym and Geoff White were
independent throughout the year and
that they remain independent at the
date of this report.
All directors are subject to election by
the shareholders at the first opportunity
after their appointment, and to 
re-election thereafter at intervals of no
more than three years.  In accordance
with this, the directors retiring by
rotation are Steve Graham, Digby Jones
and Geoff White, who being eligible
offer themselves for re-election at the
Annual General Meeting.  In addition,
Rene Kern will stand for election at the
Annual General Meeting, it being the
first since his appointment. SECTION SEVEN_PAGE TWENTY SEVEN
27
the Group has developed specific
policies and codes of practice in
relation to environmental and
employment practices
REPORT OF THE DIRECTORS
Beneficial holdings include the
directors’ personal holdings and those
of their spouse and minor children as
well as holdings in family trusts of
which the directors’ spouse or their
minor children are beneficiaries or
potential beneficiaries.  Included in the
totals shown above for Patrick Cryne
are 450,000 of such holdings.
There have been no changes in the
above interests between 30 April 2003
and 26 June 2003.
Donations
No charitable or political donations
were made during the year.
Social, Environmental and Ethical
matters statement
As its business is wholly in the
computer and software support 
arena, it is considered that iSOFT’s
business activities have minimal
environmental impact. 
The directors recognise, however, 
that there are environmental impacts in
running a company and are committed
to measuring and reducing these
impacts wherever possible.  The
directors believe that it is possible to
align the Group’s objectives with social,
environmental and ethical objectives,
without necessarily compromising the
primary objective of maximising
shareholder return.  Indeed, it is
believed that these objectives are
complementary, as operating in an
environmentally and socially sustainable
manner provides a stronger basis 
for future development of the business
operations, financial performance,
protection of reputation and 
market valuation.
With operations in four continents,
iSOFT is committed to, as a minimum,
operating in accordance with the
relevant local best practice.  In
recognition of these matters, the 
Group has developed specific policies
and codes of practice in relation 
to environmental and 
employment practices.
Directors’ share interests
The beneficial share interests in the ordinary share capital of the Company of those
persons who were directors at the balance sheet date were as follows:
Ordinary % issued Ordinary % issued
shares at capital shares at capital
1 May 2002 30 April 2003
Roger Dickens 10,925,000 9.28% 7,925,000 6.40%
Patrick Cryne 16,900,000 14.36% 12,000,000 9.69%
Steve Graham 9,950,000 8.45% 8,000,000 6.46%
Tim Whiston 352,488 0.30% 402,488 0.33%
Geoff White 155,454 0.13% 110,454 0.09%
Eurfyl ap Gwilym 45,454 0.04% 45,454 0.04%
Digby Jones 25,000 0.02% 25,000 0.02% SECTION SEVEN_PAGE TWENTY EIGHT
28
REPORT OF THE DIRECTORS
Environmental matters
In recognition of the importance of
environmental responsibility an
environmental policy has been
developed in the Group to raise
awareness, establish standards, assess
the impact of its business activities on
the environment, set improvement
objectives and monitor performance
against these objectives.
Examples of the Group’s commitment
to this policy are as follows:
_ the continuing promotion of remote 
working to reduce the environmental 
burden of commuting and business 
travel; 
_ investing in technology solutions 
such as upgrading remote 
connectivity links to promote direct 
electronic information processing and 
exchange and teleconferencing; and
_ enhancements to the Group’s 
intranet site such that employee 
bulletins and communications can be 
distributed electronically.  The 
Group’s philosophy is to establish a 
paperless environment wherever 
appropriate. 
The responsibility for maintaining 
and enforcing the policy resides at
Board level.  A copy of the current
environmental policy is available on 
the Group website.
Employees
During the year the Group continued to
communicate and consult with
employees using a variety of traditional
and new media channels.  Priority is
given to ensuring that employees are
aware of significant matters relating to
the Group’s trading performance and
organisational changes.  The directors
recognise the importance of individual
employee contributions in delivering the
Group’s successful performance to
date.  They further recognise that
sustaining the Group’s competitive
advantage over the longer term is
dependent on employees realising their
full potential.
It is Group practice, therefore, to ensure
that personal development, reward and
promotion is determined with direct
reference to ability, commitment and
individual contributions to the collective
achievements.  Disabled individuals are
afforded the same opportunities as
others, and the Group actively supports
the employment of disabled persons
both during the recruitment process
and in the retention of employees who
become disabled whilst in the
employment of the Group.
The Group is an equal opportunities
employer and has established policies
to promote an employment environment
that is free from discrimination and
harassment.  The iSOFT policy ensures
that no employee, or applicant, is
treated less favourably on the grounds
of gender, marital status, race, colour,
disability or sexual orientation or is
disadvantaged by conditions or
requirements that cannot objectively 
be justified. 
Employees are typically educated to
degree standard and, as a Microsoft
Certified Solution Provider Partner,
iSOFT actively promotes Microsoft
accreditation for staff engaged in the
development and support of the
software application portfolio.  The
directors are proud of the Group’s
record in respect of staff retention 
and development.
A significant number of employees have
shareholding interests in the Company
either directly or under share option and
share save schemes.  The directors
actively encourage this level of
employee equity participation, subject
always to the Group’s employee share
dealing code rules.  Details of the
current employee share option schemes
and the options granted during the year
are provided in Note 22 to the financial
statements on page 69.
Our July 2002 Sharesave Scheme has
been widely participated in, with 53%
of eligible employees in iSOFT’s 
world-wide locations joining the
Scheme.  The success of the Scheme
was recognised by the receipt of two
ProShare Awards in December 2002 as
well as being highly commended at the
Employee Benefits Awards ceremony in
April 2003.  Given the success of the
original scheme, the directors are
proposing to introduce a new offer
under the existing Sharesave scheme 
in the coming year.  SECTION SEVEN_PAGE TWENTY NINE
29
REPORT OF THE DIRECTORS
Research and development
The Group has a continuing
commitment to a significant level of
application development investment.
During the year, development
investment totalled £7.9m 
(2002: £5.3m), representing 8.6% of
turnover (2002: 8.8%).  All research and
development expenditure is charged to
the profit and loss account as incurred. 
This expenditure ensures that the
application portfolio benefits from the
latest technologies and continues to
address the current and emerging
customer business needs, thus
protecting the market position of the
application offering and the potential for
future revenue generation.  The Board’s
commitment to development is
demonstrated by an average of 233
employees having been dedicated to
this area in 2003 (2002: 150) out of a
total employee base of 580 (2002: 430).
Payments to creditors
Whilst the Group does not follow any
specific external code or standard on
payment practice, the policy for all
suppliers is to fix terms of payment
when agreeing the terms of each
business transaction and to ensure that
the supplier is aware of those terms.
The Group seeks to abide by those
terms whenever it is satisfied that the
supplier has met the contractual
obligations.  At 30 April 2003 the
number of days of trade creditors for
the Group, calculated by reference to
the total amounts invoiced by suppliers,
was 46 days (2002: 67 days).
Share capital
Full details of changes in share capital
in the year are shown in Note 21 to the
financial statements on page 68.
In the year, the Company issued
5,886,240 ordinary shares which were
purchased by General Atlantic Partners
at a price of 215p.  In addition, 211,417
ordinary shares were issued as part 
of the consideration for the purchase 
of Revive Group Limited in 
November 2002. 
Other than the directors, the Company
has been notified of the following
interests in more than 3% of the issued
share capital of the Company at the
date of this report:
_ General Atlantic Partners L.P . 12.8%
_ Fidelity International Limited 
and FMR Corporation 11.1%
Annual General Meeting
The Annual General Meeting will be
held at the iSOFT offices in Faraday
Wharf, Aston Science Park, Birmingham
B7 4BB starting at 3.00pm on
Wednesday 23 July 2003.  The
resolutions to be proposed at the
Annual General Meeting, together with
explanatory notes, appear in the
separate Notice of Annual General
Meeting sent to all shareholders.  The
proxy card for registered shareholders
is distributed with the Annual Report
and Accounts.
Auditors
On 3 May 2003, RSM Robson Rhodes,
the Group’s auditors, transferred
substantially the whole of their business
to RSM Robson Rhodes LLP , a limited
liability partnership incorporated under
the British Limited Liability Partnerships
Act 2000.  The directors have appointed
RSM Robson Rhodes LLP to fill the
casual vacancy arising and propose a
resolution to re-appoint RSM Robson
Rhodes LLP as auditors to the Group 
at the forthcoming Annual 
General Meeting.
Approval
The Report of the Directors was
approved by the Board on 26 June 2003
and signed on its behalf by:
a significant number of employees
have shareholding interests in the
Company either directly or under share
option and share save schemes
Tim Whiston
Company Secretary SECTION EIGHT_PAGE THIRTY
CORPORATE GOVERNANCE
REPORT
30 SECTION EIGHT_PAGE THIRTY ONE
the Board supports the highest
standards in corporate governance
and seeks to apply recommended
best practice where this is appropriate
31
Corporate Governance philosophy
and approach 
The iSOFT Group is committed to
business integrity, high ethical values
and professionalism in all its activities.
As an essential part of this
commitment, the Board of directors
supports the highest standards in
corporate governance and seeks to
apply recommended best practice
where this is appropriate for the Group.  
The Board acknowledges that the
Group operates in a rapidly developing
business environment.  Changes to the
risk profiles in the business environment
arise as a result of both external
challenges, in a highly competitive and
politically driven market place and
through internal challenges including
the growth in the size of the business
and the development of new products,
management systems and procedures.
These challenges also manifest
themselves in greater detail as risks to
the success of the Group’s financial,
operational and compliance activities.
As a result, the Board of directors is
diligent in evaluating and prioritising
each risk and in determining
appropriate systems and controls to
detect and address them on an 
on-going basis.  By doing so, the Board
believes that an effective mechanism for
continual improvement in threat
mitigation and opportunity management
is being adopted.
The Board of directors
The Group is controlled by the Board of
directors which, at 30 April 2003
comprised the Executive Chairman, 
the Chief Executive Officer, two further
executive directors and four
experienced non-executive directors,
three of whom were independent for 
the duration of the year.  Biographical
details of each director are set out on
page 26.  Each non-executive director
is encouraged to contribute to both the
full Board and its committees as
appropriate.  The Board of directors
met eight times during the year.  
CORPORATE GOVERNANCE
REPORT SECTION EIGHT_PAGE THIRTY TWO
32
CORPORATE GOVERNANCE
REPORT
During the year the Board comprised:
Executive directors
Roger Dickens
Executive Chairman
Meetings attended: 8
Patrick Cryne
Chief Executive Officer
Meetings attended: 7
Tim Whiston
Group Finance Director and 
Company Secretary
Meetings attended: 8
Steve Graham
Chief Operating Officer
Meetings attended: 8
Non-executive directors
Digby Jones
Senior non-executive director 
Meetings attended: 6
Eurfyl ap Gwilym
Non-executive director and Chairman 
of Audit Committee
Meetings attended: 8
Geoff White
Non-executive director and Chairman 
of Appointments and Remuneration
Committee
Meetings attended: 8
Rene Kern
Non-executive director
Meetings attended: 0
Graham Wilson
Resigned 5 July 2002.
Statement of directors’ roles
With the objective of ensuring
successful creation of shareholder value
within a framework of acceptable risk,
the Board sees its role to include:
_ assisting value creation through 
entrepreneurial leadership and by the 
controlled and measured 
management of a wide range of 
business risks;
_ deciding the strategic direction and 
providing the resources required to 
fulfil the future needs of the business;
_ representing the interests of 
shareholders and satisfying all 
statutory duties due to them;
_ ensuring appropriate behaviour with 
respect to the various codes of 
corporate governance and good 
business practices and by providing 
an audit trail of accountability;
_ overseeing good corporate 
citizenship and ethical behaviour 
by the Group and its employees 
with regard to all its internal and 
external stakeholders;
_ providing a challenging confidential 
forum, free from conflicts, in which 
the Chief Executive Officer can test 
strategic thinking with an informed 
group having broad continuity 
over time;
_ requiring the Chief Executive Officer 
to report openly on the operational 
performance of all parts of the Group;
_ monitoring the effectiveness of the 
Chief Executive Officer and his 
executive team against a series 
of performance objectives 
and benchmarks;
_ setting a control framework within 
which the Chief Executive Officer can 
operate, and authorising his decisions 
on major issues and investments; 
_ constituting subcommittees of the 
Board to address the issues of 
remuneration, appointments and 
audit; and
_ providing open disclosure in respect 
of the remuneration of executive 
directors and senior members of staff 
in order to incentivise other staff.
The Board believes that its style of
involvement with management through
the Chief Executive Officer and the
executive directors is the most effective
way to provide confidence in the control
environment of the Group.  Through
openness, the provision of well-defined
information and discussion, the Board
endeavours to understand and provide
leadership as to the willingness of the
Group to take appropriate risks in the
interests of the shareholders. SECTION EIGHT_PAGE THIRTY THREE
33
Statement of directors' responsibilities
for the financial statements
Company law in the United Kingdom
requires the directors to prepare
financial statements for each financial
year which give a true and fair view of
the state of affairs of the Company and
the Group and of the profit or loss of
the Group for that period.  In preparing
those 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 United 
Kingdom accounting standards have 
been followed, subject to any material 
departures disclosed and explained in 
the financial statements; and
_ prepare the financial statements on 
the going concern basis unless it is 
inappropriate to presume that the 
company will continue in business.
The directors are responsible for
keeping proper accounting records
which disclose with reasonable
accuracy at any time the financial
position of the company and enable
them to ensure that the financial
statements comply with the Companies
Act 1985.  They are also responsible for
safeguarding the assets of the company
and hence for taking reasonable steps
for the prevention and detection of
fraud and other irregularities.
The Annual Report is available on the
Group’s website www.isoftplc.com. 
The maintenance and integrity of the
Group's website 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 financial statements
since they were initially presented on
the website.
Legislation in the United Kingdom
governing the preparation and
dissemination of the financial
statements and other information
included in annual reports may differ
from legislation in other jurisdictions.
Appointments to the Board
Each member of the Board brings
different experience and skills to the
operation of the Board and its various
committees.  The Board composition is
kept under review and when a new
appointment is to be made,
consideration is given to the particular
skills, knowledge and experience that a
potential new member could add to the
existing board composition.
Comprehensive, formal and tailored
induction is provided to new Board
members.  The Group has long
recognised the vital role that 
non-executive directors have in
ensuring high governance standards
and maintains a significant 
non-executive element of high calibre.
In keeping with this commitment, 
Rene Kern was appointed as a 
non-executive director to the Board on
14 March 2003.  Rene Kern is a senior
executive with General Atlantic Partners
who owned 12.8% of the shares of
iSOFT Group plc at the balance 
sheet date. 
regular dialogue is maintained to
ensure that the investing community
receives a balanced and consistent
view of the Group’s performance
CORPORATE GOVERNANCE
REPORT SECTION EIGHT_PAGE THIRTY FOUR
34
CORPORATE GOVERNANCE
REPORT
Information and professional
development
The directors have implemented
appropriate reporting procedures to
ensure that they are supplied with
timely, accurate and comprehensive
information to enable the Board to
discharge its duties in full.  Existing
Board members have many years of
relevant experience, all are responsible
for ensuring continuing professional
development to maintain up to date 
and effective skills and knowledge.  
The directors have access to seek
independent advice, at the Group’s
expense, if necessary for the proper
performance of their duties.  The
directors also have access to the
Company Secretary for his advice 
and service.
Performance evaluation
The Board monitors performance
against the achievement of the Group’s
strategic objectives.  Each executive
director has defined responsibilities for
performance and measurement of
achievement includes a mix of financial
and non-financial, together with
predictive and historic indicators.  
All directors are required to submit
themselves for re-election at regular
intervals and at least every three years,
subject to satisfactory performance.
Board committees
The Audit Committee and the
Appointments and Remuneration
Committee deal with specific aspects of
the Group’s affairs in accordance with
their written terms of reference.  Each
are comprised of only the three
independent non-executive directors.
The non-executive directors also met
once during the period without the
Executive Chairman or other executive
directors present.  The Appointments
and Remuneration Committee Report is
set out on pages 37 to 41 and the 
Audit Committee Report is provided 
on page 43. 
Relations with shareholders
The Group values the views of
shareholders and recognises their
interests in the Group’s strategy and
performance.  A regular dialogue with
fund managers, other investors and
analysts is maintained, primarily
following the announcement of interim
and preliminary results, to ensure that
the investing community receives a
balanced and consistent view of the
Group’s performance.  
The Chief Executive Officer and Group
Finance Director are also available to
meet principal shareholders on request.
All shareholders are welcomed to the
Annual General Meeting to put
questions to the Board of directors.
Communication is also provided
through the Annual Report and the
Interim Report and the Group has
established an investor relations facility
on its website, on which up to date
financial and other information 
is available.  
Internal control
The Board retains full responsibility for
the Group’s system of internal controls
which operate on a global basis, and for
reviewing its effectiveness.  However,
such a system is designed to manage
rather than eliminate the risk of failure
to achieve business objectives and can,
therefore, provide only reasonable and
not absolute assurance against material
misstatement or loss.  In accordance
with the Combined Code, the directors
review continually the effectiveness of
the Group’s system of internal controls,
including financial, operational,
compliance and risk management.  
In addition, and in support of the
statement of compliance published
herein, the Board commissioned an
annual external assessment of the
Group’s system of internal control.  
The findings are communicated to all
staff thereby embedding risk awareness
across the Group.  SECTION EIGHT_PAGE THIRTY FIVE
35
Key elements of the Group’s internal
controls are:
_ a clearly defined management 
structure and delegation of authority 
to committees of the Board, heads 
of departments and individual 
business units;
_ clearly documented internal 
procedures set out in the Group’s 
ISO 9001:2000 accredited quality 
management manual;
_ high recruitment standards together 
with formal career development and 
training to ensure the integrity and 
competence of staff;
_ regular and comprehensive 
information provided to management, 
covering financial performance and 
key performance indicators, including 
non-financial measures;
_ a detailed budgeting process and 
rolling three year strategic plans 
which are approved by the Board;
_ procedures for the approval of 
capital expenditure and investment 
and acquisition projects;
_ on-going review of contractual 
agreements with existing and 
new customers;
_ monthly monitoring and 
re-forecasting of results against 
budget, with investigation and action 
taken in response to variances; 
_ regular internal audits of key 
processes and procedures under the 
Group’s ISO 9001:2000 accredited 
quality management process; and
_ an internal quality audit function 
which consists of two full time and 
twenty eight part time members.
During the year, the Group introduced a
dedicated internal quality audit function,
consistent with the Group’s growth and
development.  In February 2003 the
Group successfully secured 
ISO 9001:2000 accreditation.
A comprehensive programme of internal
quality audits is defined in advance of
each financial year.  The Board
considers the structure and remit of the
internal quality audit function to be
appropriate given the size of the Group,
and the close involvement of directors
and senior management in day-to-day
operations.  Any future requirement for
an increase in the size or scope of the
internal quality audit function will
continue to be reviewed on an ongoing
basis as the Group develops.
Compliance with the Combined Code 
The directors believe that the Group has
complied in all material requirements of
the Combined Code as annexed to the
Financial Service Authority’s Listing
Rules throughout the year. 
Going concern
The directors are satisfied that the
Group has adequate resources to
continue in operational existence for 
the foreseeable future, a period of not
less than twelve months from the date
of this report.  For this reason, they
continue to adopt the going concern
basis in preparing the financial
statements.  The directors have
satisfied themselves that the Group 
is in a sound financial position and 
that sufficient cash resources will 
be available to meet foreseeable
investment opportunities or other 
cash requirements.
the directors review continually the
effectiveness of the Group’s system of
internal controls, including financial,
operational, compliance and risk management
Digby Jones
Senior non-executive director
CORPORATE GOVERNANCE
REPORT SECTION NINE_PAGE THIRTY SIX
REMUNERATION REPORT
36 SECTION NINE_PAGE THIRTY SEVEN
remuneration packages of the executive
directors are reviewed annually to ensure
that they remain supportive of the Group’s
business objectives
37
REMUNERATION REPORT
Appointments and Remuneration
Committee
The Appointments and Remuneration
Committee (the 'Committee') is primarily
responsible for formulating and
recommending to the Board the
framework for executive remuneration,
and determining, on behalf of the 
Board and shareholders, the specific
remuneration packages of the 
executive directors.
The members of the Committee during
the year were Geoff White as
Committee Chairman, Digby Jones and
Eurfyl ap Gwilym.  All of the members
of the Committee are independent 
non-executive directors.
During the year the Committee 
received guidance on executive
remuneration from relevant personnel,
except on matters relating to their 
own remuneration.  The Committee 
also appointed New Bridge Street
Consultants during the year to provide
independent, external advice.  No other
services were provided to the Company
during the year by New Bridge 
Street Consultants.
Remuneration policy
The Committee's policy is to ensure
that the remuneration packages are:
_ competitive by reference to a peer 
group of similar companies, taking 
into account relative performance, 
size and complexity;
_ effective in attracting, retaining and 
motivating executive directors and 
other senior management of the 
appropriate calibre; and
_ an appropriate means of aligning 
executives' interests with the interests 
of shareholders.
The remuneration of executive directors
comprises basic salary, private health
insurance, life assurance, a contribution
towards pension, a performance related
bonus and, where appropriate, the
opportunity to participate in the Group’s
share option schemes.  Remuneration
packages of the executive directors are
reviewed annually to ensure that they
remain supportive of the Group’s
business objectives, principally the
creation of shareholder value. To this
end the current remuneration is strongly
weighted towards prospective business
performance.  A high proportion of 
the remuneration is, therefore,
performance-related, in the form of
cash and deferred share bonuses.
The remuneration of non-executive
directors is determined by the Board
with regard to market comparatives.
Independent advice is sought to ensure
parity is maintained with similar
businesses.  The basic annual fee for
non-executive directors was increased
during the year in line with market
comparatives.  The Board has the
power to pay additional remuneration
for any services outside the scope of
the ordinary duties of a non-executive
director.
Basic salary 
Basic salaries are reviewed annually
and adjustments made where
necessary to reflect changes in
responsibilities, individual performance
and market rates.  Basic salary levels
are established with reference to the
median basic salary for similar positions
in comparable FTSE Mid Cap
businesses in the software and
computer services sector. REMUNERATION REPORT
SECTION NINE_PAGE THIRTY EIGHT
38
Performance related bonus
The Group provides for performance
related bonuses for executive directors.
Bonuses are payable at the discretion
of the Appointments and Remuneration
Committee based on the Group’s
performance and the individual
executive’s contribution to that
performance.  The financial
performance targets are set with
reference to, amongst other things,
earnings per share growth and
normalised profit before tax.  In order 
to align more closely the long-term
interests of executive directors and
shareholders, the bonus scheme was
amended during the year such that
50% of any bonus earned is deferred
and is payable in shares in the
Company, that must be held for 
three years. 
The maximum bonus payable to any
individual executive director would
consist of a cash bonus and deferred
share bonus, each worth 100% of basic
salary, but this level of bonus would be
payable only in the event of outstanding
performance, substantially in excess of
the targets set. 
Share option schemes
The Group operates an approved and
an unapproved share option scheme.
The schemes are designed to provide
long-term incentives to recipients, thus
assisting in the creation and sustaining
of shareholder value.
All options granted to executive
directors are subject to the achievement
of certain performance conditions.
Details of the share options granted to
date are set out later in this report. 
The Committee applies the normalised
profit before tax financial measure to the
share option scheme as an appropriate
reflection of company performance.
This figure is reflected in these financial
statements which have been audited by
RSM Robson Rhodes LLP .
Pensions
The Group makes an annual payment
equal to 20% of basic salary to the
executive directors.  Directors are
responsible for using these funds to
make their own pension arrangements.
The company does not operate at any
level a defined benefit scheme.
Service contracts
All executive directors have agreements
that can be terminated by the Group on
12 months notice.  The Committee is
mindful of the need to consider
compensation commitments, if any, that
are appropriate in the event of the early
termination of executive directors’
contracts bearing in mind the Group’s
legal obligations and the individual’s
ability to mitigate their loss.
The directors’ agreements were all
revised on 25 March 2003 with the
exception of Steve Graham’s which is
dated 19 May 2000.  The new
agreements have provision for the
payment of twelve months basic salary
plus one year’s pension contribution at
20% of basic salary in the event of
termination by the company.  
Payments to be made monthly and
mitigated as appropriate. 
Non-executive directors do not have
service agreements and are appointed,
under letters of appointment. 
Re-appointment is not automatic and
current terms of appointment expire 
in May 2006.
External appointments
The consent of the Board is required for
any external appointments such as a
non-executive director position with
another company where it may give rise
to a conflict of interest.  Where an
appointment is accepted, it must be
undertaken in the director’s own time.
The director is, therefore, in these
circumstances permitted to retain 
any remuneration earned from the
external appointment. Directors’ remuneration (audited)
Directors’ remuneration for the year ended 30 April 2003 was as follows:
Basic Benefits Pension Performance Total 2003 Total 2002 2003 2002 Prevailing
salary contribution
1
related bonus (excluding Deferred Deferred salary at
earned payable in deferred share share share 30 April
cash bonus) bonus
2
bonus 2003
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Roger Dickens 282 1 56 203 542 835 203 - 325
Patrick Cryne 325 1 65 253 644 950 253 - 375
Steve Graham  282 1 56 219 558 823 219 - 325
Tim Whiston 258 1 52 253 564 740 253 - 338
Graeme Wilson
3
87 - - 43 130 185 -                - -
Digby Jones 30 - - - 30 25 - - 35
Geoff White  30 - - - 30 25 -  - 35
Eurfyl ap Gwilym 30 - - - 30 25 - - 35
Total                      1,324 4 229 971 2,528 3,608 928 - 1,468
1
Pension contribution equals 20% of basic salary.  Directors are responsible for using the contribution to make their own pension arrangements.
2
Deferred shares will be held on trust for the benefit of the director subject to them remaining in employment for three years from 30 April 2003.
3
Resigned 5 July 2002.
Note: Rene Kern was appointed as a non-executive director on 14 March 2003.  He did not receive any remuneration in the year ended 30 April 2003.
REMUNERATION REPORT
SECTION NINE_PAGE THIRTY NINE
39
financial performance targets are
set with reference to earnings
per share growth and normalised
profit before tax REMUNERATION REPORT
SECTION NINE_PAGE FORTY
40
Jul00 Apr01 Oct01 Oct00 Apr02 Oct02 Apr03
50
0
100
150
200
250
300
350
FTSE Mid 250 Index TSR
iSOFT TSR
50
0
100
150
200
250
300
350
FTSE techMARK 100 TSR
iSOFT TSR
Jul00 Apr01 Oct01 Oct00 Apr02 Oct02 Apr03
50
0
100
150
200
250
300
350
FTSE Software & Computer
Services Index TSR
iSOFT TSR
Jul00 Apr01 Oct01 Oct00 Apr02 Oct02 Apr03
Total Shareholder Return
The graphs below illustrate Total
Shareholder Return (TSR) performance
of the Company in comparison to
appropriate broad equity market indices
over the period since listing in 
July 2000.  TSR is defined as share
price growth plus reinvested dividends.
The Committee has decided that the
FTSE Mid 250, the FTSE All-Share
Software & Computer Services and the
techMARK 100 indices are suitable
comparators as the Company has been
a constituent of these indices for a
significant period since flotation.
iSOFT TSR
versus
FTSE Mid 250 
Index TSR
iSOFT TSR
versus
FTSE Software &
Computer Services
Index TSR
iSOFT TSR
versus
FTSE techMARK 
100 TSR REMUNERATION REPORT
SECTION NINE_PAGE FORTY ONE
41
Directors’ share options (audited)
In addition to the directors’ share interests noted in the Report of the Directors on page 27, the following share options have 
been granted to Tim Whiston:
Exercise price At Granted At Date from Expiry date
(pence) 1 May 2002 during the year 30 April 2003 which exercisable 
110
1
101,000 - 101,000 11 Jul 2003 10 Jul 2010
174
1
250,000 - 250,000 20 Dec 2003 19 Dec 2010
249
1
850,000 - 850,000 22 Jun 2004 21 Jun 2011
145
2
- 480,176 480,176 11 Oct 2005 10 Oct 2012
145
2
- 19,824 19,824 11 Oct 2005 10 Oct 2012
1
Options are exercisable subject to the performance of the Company's Total Shareholder Return (TSR) relative to growth in the Retail Price Index (RPI) 
over the three year period from the date of grant of the option:  
_ 25% of options may be exercised if the Company's TSR over the period exceeds the growth in RPI by 20%
_ 50% of options may be exercised if the Company's TSR over the period exceeds the growth in RPI by 35%
_ 100% of options may be exercised if the Company's TSR over the period exceeds the growth in RPI by 50%
2
Options are exercisable subject to the growth in the Company's normalised profit before tax relative to the growth in RPI over the three year period from the date 
of grant of the option:
_ 50% of options may be exercised if normalised profit before tax growth exceeds the growth in RPI by 10%
_ 100% of options may be exercised if normalised profit before tax growth exceeds the growth in RPI by 20%
In both cases, where the performance target growth falls between the levels specified, the proportion of options that may be exercised will be calculated on a straight
line basis.  Where the growth is less than the minimum growth level specified above, all of the options lapse and cease to be exercisable. 
a high proportion of remuneration is
performance related in the form of cash
and deferred share bonuses
Geoff White
Chairman of the Appointments and
Remuneration Committee
No share options lapsed or were
exercised by directors during the year.
The market mid price of the Company’s
shares at 1 May 2002 and 30 April 2003
was 284 pence and 264 pence
respectively.  The range during the
financial year was between 140 pence
and 284 pence.
There have been no changes in the
above interests between 30 April 2003
and 26 June 2003. SECTION NINE_PAGE FORTY TWO
AUDIT COMMITTEE REPORT
42 AUDIT COMMITTEE REPORT
SECTION NINE_PAGE FORTY THREE
43
the Audit Committee was pleased
to see the Group receive the 
ISO 9001:2000 quality
accreditation in the year
Role of the Audit Committee 
The Audit Committee (the ‘Committee’)
is responsible for making
recommendations on the appointment
of external auditors, the level of the
audit fee and for ensuring their
independence.  The Committee reviews
proposed results publications and the
effectiveness of internal controls.
Audit Committee membership 
and meetings 
The Audit Committee is chaired by
Eurfyl ap Gwilym.  Other members of 
the committee are Digby Jones and
Geoff White.  All members of the
Committee are independent 
non-executive directors.  Other
directors are invited to Audit Committee
meetings as appropriate.
The Committee met twice during the
year with the Group Finance Director
and the external auditors.  In addition,
the Committee also met with the
external auditors without the executive
directors being present.  The three
members of the Committee attended 
all the meetings held during the year.
Details of the remuneration of the
members of the Committee are 
set out on page 39 of the 
Remuneration Report.
Financial statements, internal
financial controls and risk
management systems 
The Committee meets to review the
Group’s annual and interim financial
statements, internal management
arrangements, accounting policies and
internal financial controls.  The external
auditors attended all meetings and have
had direct access to the Committee
throughout the year. 
The Board commissioned a review of
the risk management processes in
place during the year.  The review was
conducted by RSM Robson Rhodes
LLP and conclusions were reported
directly to the Audit Committee.  The
findings of the review are summarised
in the Corporate Governance report
included within this annual report.
External auditors
The Audit Committee also reviews
annually the performance of the Group’s
external auditors to ensure that an
objective, professional and 
cost-effective relationship is maintained.
The Audit Committee is also
responsible for monitoring non-audit
fees paid to the external auditors to
ensure that no conflicts of interest arise.  
The Committee has reviewed the 
non-audit fees paid to the external
auditors and has deemed that in the
year ended 30 April 2003 they do not
affect independence.  The Audit
Committee is informed of all material
non-audit work commissioned from the
external auditors in advance of such
work being undertaken.
Internal audit function 
The Committee is responsible for
considering the need for an internal
audit function on an annual basis.
The Audit Committee was pleased to
see the Group receive the 
ISO 9001:2000 quality accreditation 
in the year.  Compliance with quality
processes is overseen by the quality
audit team. 
At this stage in the Company’s
development, the Audit Committee is
satisfied that a separate, independent
internal financial audit function is not
required.  This decision will be reviewed
on a continuing basis as the size and
complexity of the Group changes.
Eurfyl ap Gwilym
Chairman of the Audit Committee Independent Auditors’ Report to the
shareholders of iSOFT Group plc 2003
We have audited the financial statements on pages 47 to 71.  We have also audited the information in the
Remuneration Report that is described as having been audited.
This report is made solely to the Company’s shareholders, as a body, in accordance with Section 235 of the
Companies Act 1985.  Our audit work has been undertaken so that we might state to the Company’s shareholders
those matters we are required to state to them in an auditors’ report and for no other purpose.  To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s
shareholders as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual Report, the Remuneration Report and the financial statements
in accordance with applicable law and United Kingdom Accounting Standards are set out in the Statement of
Directors’ Responsibilities on page 33.
Our responsibility is to audit the financial statements and the part of the Remuneration Report to be audited in
accordance with relevant legal and regulatory requirements, United Kingdom Auditing Standards and the Listing
Rules of the Financial Services Authority.  We report to you our opinion as to whether the financial statements give a
true and fair view and whether the financial statements and the part of the Remuneration Report to be audited have
been properly prepared in accordance with the Companies Act 1985.  We also report to you if, in our opinion, the
Report of the Directors’ is not consistent with the financial statements, if the Company has not kept proper
accounting records, if we have not received all the information and explanations we require for our audit, or if
information specified by law or the Listing Rules regarding directors’ remuneration and transactions with the
Company and other members of the Group is not disclosed.
We review whether the Corporate Governance Statement reflects the Company’s compliance with the seven
provisions of the Combined Code specified for our review by the Listing Rules and we report if it does not.  We are
not required to consider whether the Board’s statements on internal control cover all risks and controls or form an
opinion on the effectiveness of the Group’s corporate governance procedures or its risk and control procedures.
We read other information contained in the Annual Report and consider whether it is consistent with the audited
financial statements.  The other information comprises only the Chairman’s Statement, Chief Executive’s Report,
Operating Review, Financial Review, Corporate Governance Report, the unaudited part of the Remuneration Report,
the Audit Committee Report and the Five Year Summary.  We consider the implications for our report if we become
aware of any apparent misstatements or material inconsistencies with the financial statements.  Our responsibilities
do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices
Board.  An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the
financial statements and the part of the Remuneration Report to be audited.  It also includes an assessment of the
significant estimates and judgements made by the directors in the preparation of the financial statements, and of
whether the accounting policies are appropriate to the Company's circumstances, consistently applied and
adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial 
statements and the part of the Remuneration Report to be audited are free from material misstatement, whether
caused by fraud or other irregularity or error.  In forming our opinion we also evaluated the overall adequacy of the
presentation of information in the financial statements and the part of the Remuneration Report to be audited.
Opinion
In our opinion:
_the financial statements give a true and fair view of the state of affairs of the Company and the Group as at 
30 April 2003 and of the Group’s profit for the year then ended; and
_the financial statements and the part of the Remuneration Report to be audited have been properly 
prepared in accordance with the Companies Act 1985.
RSM Robson Rhodes LLP
Chartered Accountants and Registered Auditors
Manchester, England
26 June 2003
INDEPENDENT
AUDITORS’ REPORT
PAGE FORTY FOUR
44 SECTION TEN_PAGE FORTY FIVE
45
FINANCIAL STATEMENTS SECTION TEN
FINANCIAL STATEMENTS FINANCIAL STATEMENTS
SECTION TEN_PAGE FORTY SEVEN
47
Consolidated profit and loss account
for the year ended 30 April 2003
Note
The accompanying accounting policies and notes form an integral part of these financial statements.
Turnover 2
Operating costs excluding 
goodwill amortisation
Goodwill amortisation
Operating costs 3
Operating profit 3
Net interest payable and
similar charges 4
Profit on ordinary activities
before taxation 5
Tax on profit on ordinary
activities 8
Profit on ordinary activities
after taxation
Minority interests – equity
Profit for the financial year
Dividends 9
Retained profit for the year 23
Earnings per share:
Basic 10
Diluted 10
Underlying 10
Continuing 
operations:
Acquisitions
2003
£'000
12,617
(8,321)
(1,281)
(9,602)
3,015
Continuing 
operations:
Ongoing
2003
£'000
78,878
(57,574)
(3,369)
(60,943)
17,935
Total
2003
£'000
91,495
(65,895)
(4,650)
(70,545)
20,950
(2,070)
18,880
(5,484)
13,396
(146)
13,250
(2,192)
11,058
11.17p
11.08p
15.09p
T otal
2002
£'000
60,102
(43,683)
(3,271)
(46,954)
13,148
(970)
12,178
(3,092)
9,086
(92)
8,994
(1,413)
7,581
7.69p
7.61p
10.49p FINANCIAL STATEMENTS
SECTION TEN_PAGE FORTY EIGHT
48
Statement of total recognised gains and
losses for the year ended 30 April 2003
2003
£'000
13,250
670
13,920
2002
£'000
8,994
178
9,172
Profit for the financial year 
Foreign exchange gain 
Total recognised gains for the financial year 
Reconciliation of movements in shareholders’ funds
for the year ended 30 April 2003
Company
2003
£'000
4,624
(2,192)
2,432
12,881
-
15,313
39,806
55,119
Group 
2003
£'000
13,250
(2,192)
11,058
12,881
670
24,609
48,661
73,270
Group
2002
£'000
8,994
(1,413)
7,581
13,066
178
20,825
27,836
48,661
Company
2002
£'000
3,473
(1,413)
2,060
13,066
-
15,126
24,680
39,806
Profit for the financial year
Dividends
Issue of share capital net of issue costs
Foreign exchange gain
Net increase in shareholders’ funds
Opening shareholders’ funds
Closing shareholders’ funds
The accompanying accounting policies and notes form an integral part of these financial statements. The accompanying accounting policies and notes form an integral part of these financial statements.
FINANCIAL STATEMENTS
SECTION TEN_PAGE FORTY NINE
49
Consolidated balance sheet
as at 30 April 2003
2003
£'000
91,989
1,776
93,765
31,113
45,451
76,564
(44,216)
32,348
126,113
(52,586)
-
(257)
73,270
12,382
30,119
7,683
23,086
73,270
Note
11
12
15
16
17
18
21
23
23
23
2002
£'000
60,912
1,971
62,883
18,647
23,713
42,360
(33,307)
9,053
71,936
(23,129)
(23)
(123)
48,661
11,772
18,327
7,204
11,358
48,661
Fixed assets
Intangible assets – goodwill
Tangible assets
Current assets
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after one year
Provision for liabilities and charges
Minority interests – equity
Net assets
Capital and reserves
Called up share capital
Share premium account
Merger reserve
Profit and loss account 
Equity shareholders’ funds FINANCIAL STATEMENTS
SECTION TEN_PAGE FIFTY
50
Company balance sheet 
as at 30 April 2003
The financial statements were approved by the Board of Directors on 26 June 2003, and signed
on its behalf by:
Patrick Cryne
Chief Executive Officer
Tim Whiston
Group Finance Director
2002
£'000
47,325
25,003
201
25,204
(10,060)
15,144
62,469
(22,663)
39,806
11,772
18,327
7,204
2,503
39,806
Note
13
15
16
17
21
23
23 
23 
2003
£'000
51,849
71,986
-
71,986
(16,545)
55,441
107,290
(52,171)
55,119
12,382
30,119
7,683
4,935
55,119
Fixed assets
Investments
Current assets
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after one year
Net assets
Capital and reserves
Called up share capital
Share premium account
Merger reserve
Profit and loss account
Equity shareholders' funds
The accompanying accounting policies and notes form an integral part of these financial statements. FINANCIAL STATEMENTS
SECTION TEN_PAGE FIFTY ONE
51
Consolidated cash flow statement 
for the year ended 30 April 2003
Note 2003  
£'000
23,538
356
(2,529)
(481)
(9)
(2,663)
(4,295)
(357)
26
(331)
(34,422)
-
(8)
(34,430)
(1,648)
(19,829)
12,656
(275)
51,500
(22,693)
(121)
41,067
21,238
2002
£'000
16,905
165
(1,230)
-
(16)
(1,081)
(2,987)
(965)
49
(916)
(6,690)
270
208
(6,212)
(1,312)
4,397
13,440
(374)
-
(3,472)
(176)
9,418
13,815
Net cash inflow from operating activities 24
Returns on investments and servicing of finance
Interest received
Interest paid
Finance costs under FRS 4
Finance lease interest paid
Net cash outflow from returns on investments 
and servicing of finance
Taxation
Capital expenditure
Payments for tangible fixed assets
Receipts from sale of tangible fixed assets
Net cash outflow from capital expenditure
Acquisitions and disposals
Purchase of subsidiary undertakings
Cash refund on prior year acquisition
Cash acquired with subsidiary undertakings
Net cash outflow from acquisitions and disposals
Equity dividends paid
Net cash (outflow)/inflow before financing
Financing
Issue of ordinary shares
Expenses paid in connection with ordinary share issue
New bank and other loans
Repayment of bank and other loans
Capital element of finance lease payments made
Net cash inflow from financing
Increase in cash 26
The accompanying accounting policies and notes form an integral part of these financial statements. FINANCIAL STATEMENTS
SECTION TEN_PAGE FIFTY TWO
52
Notes to the financial statements
The financial statements are prepared in accordance with applicable accounting standards under
the historical cost convention. The particular accounting policies adopted by the directors are
described below:
i_Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and all
of its subsidiary undertakings using acquisition accounting.  The results of subsidiary undertakings
acquired or disposed of during a financial year are included from, or up to, the effective date of
acquisition or disposal.
ii_Goodwill
Positive goodwill is the excess of the cost of an acquired entity over the aggregate of the fair
values of that entity’s identifiable assets and liabilities.  Positive goodwill relating to acquisitions is
shown in the balance sheet as an asset.  On completion of each acquisition the directors estimate
the useful economic life and it is over this period that the goodwill is amortised on a straight-line
basis.  For transactions where the primary objective is the acquisition of customer base, and where
the customer relationships continue under multi-year contract arrangements, the directors believe it
appropriate to ascribe useful economic lives of up to 20 years.  To date all acquisitions have been
assessed by directors to have useful economic lives of 20 years.  In addition to systematic
amortisation, the book value is written down to recoverable amount when any impairment 
is identified.
iii_Profit for the financial year
The Company has taken advantage of section 230 of the Companies Act 1985 and has not
included its own profit and loss account in these financial statements. 
iv_Turnover
The Group’s revenues are derived from the sale of software product licenses, the attendant
installation, maintenance and support service revenues, supplies of third party hardware and
software and the provision of PFI compliant finance facilities offered by third party funders. 
All revenue is reported exclusive of value added tax and other sales tax.
In the absence of a United Kingdom accounting standard on revenue recognition, the Group
believes that the best guidance is set out under US GAAP , in particular SOP 97-2 and SAB 101.
The Group’s approach to revenue recognition closely mirrors US GAAP , with revenue only
recognised when:
_ persuasive evidence of an arrangement exists;
_ physical delivery has occurred or services have been rendered;
_ the price to the customer is fixed or determinable;
_ any services deliverable under the supply arrangement are clearly separable from the
software supply; and
_ collectibility is reasonably assured and there are no material outstanding conditions or 
contingencies attaching to the receipt of monies due.
v_Recognition of profit
Turnover from the sale of software product licenses is recognised at the time the software licence is
granted in accordance with agreed contractual triggers, typically the supply of the software product
to the customer.  Revenues from the attendant installation, maintenance and support services are
recognised proportionally over the period that the services are provided with due regard for future
anticipated costs.  Payments received in advance of services are recorded in the balance sheet as
deferred income.
01
accounting
policies Notes to the financial statements
vi_Research and development
Research and development costs are fully written off in the year in which they are incurred. 
vii_Depreciation
Depreciation is provided at rates calculated to write down the cost of tangible assets over their
estimated useful life on a straight-line basis.  The annual rates of depreciation, by category of fixed
asset, are as follows:
_ office equipment, fixtures and fittings 12.5% to 20.0%
_ computer equipment 33.3%
_ motor vehicles 25.0%
viii_Foreign exchange
Transactions denominated in foreign currencies are translated into sterling at the rates ruling at the
dates of transactions.  Monetary assets and liabilities denominated in foreign currencies at the
balance sheet date are translated at the rates ruling at that date.  These transaction differences are
taken to the profit and loss account. 
Results of overseas subsidiaries are translated using the average exchange rate for the period.  The
balance sheets of overseas subsidiaries are translated at the closing rate on the year end date and
any resulting exchange differences taken to reserves.
ix_Taxation
Corporation tax is provided on taxable profits at the current rate.
Deferred tax is provided on timing differences that have arisen but not reversed by the balance
sheet date, where the timing differences result in an obligation to pay more tax, or a right to pay
less tax, in the future.  Timing differences arise because of differences between the treatment of
certain items for accounting and taxation purposes.
Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they
will be recovered.  
Deferred tax is measured at the tax rates that are expected to apply in the periods when the timing
differences are expected to reverse, based on tax rates and law enacted or substantively enacted
at the balance sheet date.  Deferred tax assets and liabilities are not discounted.
Where law or accounting standards require gains and losses to be recognised in the statement of
total recognised gains and losses, the related taxation is also taken directly to the statement of
total recognised gains and losses in due course.
x_Leased assets
Assets held under finance leases are included in the balance sheet and depreciated in accordance with
the Group’s normal accounting policy for the class of asset concerned.  The present value of future
rentals is shown as a liability.  The interest element of rental obligations is charged to the profit and loss
account over the period of the lease in proportion to the balance of capital repayments outstanding.
Rentals payable under operating leases are charged to the profit and loss account on a straight-line basis
over the period of the leases.
xi_Pensions
All employees are eligible to join the iSOFT Group Personal Pension Scheme or other Group approved
defined contribution pension schemes.  The pension charge shown in the financial statements represents
the total contributions payable by the Group for the year.
01
accounting
policies
cont...
FINANCIAL STATEMENTS
SECTION TEN_PAGE FIFTY THREE
53 FINANCIAL STATEMENTS
SECTION TEN_PAGE FIFTY FOUR
54
Notes to the financial statements
Turnover in United Kingdom and other EU states includes £6,281,000 (2002: £5,700,000) in respect of
amounts billed under PFI (Private Finance Initiative) type contracts, where a corresponding finance
repayment is forwarded to the third party provider of capital and recorded in operating costs.
The principal activity of the Group is the development and supply of software applications to the
healthcare sector.
02
segmental
analysis
03
operating
profit
2003
£'000
74,010
17,485
91,495
2002
£'000
48,833
11,269
60,102
Turnover by geographical market
United Kingdom and other EU states
Asia Pacific
Total
2002
£'000
60,102
13,148
48,661
Total
2003
£'000
91,495
20,950
73,270
2002
£'000
-
(468)
(340)
2003
£'000
-
(935)
(946)
2002
£'000
9,342
3,059
3,338
2003
£'000
17,485
5,766
4,723
2002
£'000
50,760
10,557
45,663
2003
£'000
74,010
16,119
69,493
Geographical operations
Turnover
Profit/(loss) 
before interest
Net assets/(liabilities)
United Kingdom
and other EU states
Asia Pacific Rest of World
Acquisitions
2003
£'000
12,617
(4,551)
(2,541)
(21)
(1,281)
(1,208)
(9,602)
3,015
Ongoing 
2003
£'000
78,878
(26,229)
(21,955)
(571)
(3,369)
(8,819)
(60,943)
17,935
Note
6
12
11
Total
2003
£'000
91,495
(30,780)
(24,496)
(592)
(4,650)
(10,027)
(70,545)
20,950
Total
2002
£'000
60,102
(14,696)
(19,711)
(513)
(3,271)
(8,763)
(46,954)
13,148
Continuing operations
Turnover
Other external charges
Staff costs
Depreciation of tangible fixed assets
Goodwill amortisation
Other operating charges
Total operating costs
Operating profit Notes to the financial statements
2003
£'000
328
(2,338)
(51)
(9)
(2,398)
(2,070)
2003
£'000
7,896
100
171
(3)
4,650
526
66
718
678
2002
£'000
192
(1,132)
(14)
(16)
(1,162)
(970)
2002
£'000
5,270
71
48
78
3,271
424
89
515
622
Interest receivable comprises:
Bank interest
Interest payable comprises:
Bank loans and overdrafts
Amortisation of loan arrangement fees
Finance leases
Net interest payable and similar charges
This is arrived at for the Group after charging/(crediting):
Research and development:
– Current period expenditure
Auditors’ remuneration in respect of:
– Audit services 
– Other services
(Profit)/loss on disposal of fixed assets
Depreciation and amortisation:
– Goodwill
– Tangible fixed assets, owned
– Tangible fixed assets, held under finance leases
Operating lease rentals:
– Premises
– Vehicles and equipment
FINANCIAL STATEMENTS
SECTION TEN_PAGE FIFTY FIVE
55
04
net interest
payable and
similar charges
05
profit on ordinary
activities before
taxation Staff costs during the period were as follows:
Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees, including executive 
directors, employed by the Group during the period was:
Development
Sales and marketing
Installation and project management 
Customer services
Administration
Total remuneration in respect of directors was as follows:
Salary and fees
Benefits
Bonus
Emoluments
Pension contribution payments
Four directors received payments for personal pension contributions.
No share options were exercised by directors during the year or in the prior year.
FINANCIAL STATEMENTS
SECTION TEN_PAGE FIFTY SIX
56
Notes to the financial statements
06
employee
information
07
directors’
remuneration
2002
£'000
17,280
1,853
578
19,711
2002
Number
150
51
124
56
49
430
2002
£'000
937
4
2,667
3,608
-
3,608
2003
£'000
21,477
1,835
1,184
24,496
2003
Number
233
60
133
88
66
580
2003
£'000
1,324
4
1,899
3,227
229
3,456 FINANCIAL STATEMENTS
SECTION TEN_PAGE FIFTY SEVEN
57
Notes to the financial statements
2003  
£'000
3,685
44
3,729
(94)
3,635
2,840
(402)
2,438
6,073
(589)
-
(589)
5,484
2003  
£'000
18,880
5,664
1,018
(584)
(358)
(128)
(94)
(34)
589
6,073
2002  
£'000
2,771
(248)
2,523
(219)
2,304
778
(45)
733
3,037
56
(1)
55
3,092
2002  
£'000
12,178
3,653
1,085
(1,051)
(293)
(112)
(219)
(6)
(20)
3,037
United Kingdom corporation tax
Current tax on income for the year
Adjustments in respect of prior years
Double tax relief
After double tax relief
Overseas taxation
Overseas taxation
Adjustments in respect of prior years
Current taxation
Deferred taxation
Net (reversal)/origination of timing differences
Changes in tax rates
Tax on profit on ordinary activities
Current tax reconciliation
Profit on ordinary activities before taxation
Theoretical tax at UK corporation tax rate of 30% (2002: 30%)
Effects of: 
Expenditure not tax deductible
Movement on deferred tax not provided
Adjustments in respect of prior periods
Difference in tax rates in overseas companies
Withholding tax
Exchange rate differences
Accelerated capital allowances
Actual current taxation charge
08
tax on profit
on ordinary
activities Equity dividends
Ordinary shares of £0.10 each:
– Interim dividend of 0.60p per share (2002: 0.40p)
– Proposed final dividend of 1.20p per share (2002: 0.80p)
FINANCIAL STATEMENTS
SECTION TEN_PAGE FIFTY EIGHT
58
Notes to the financial statements
09
dividends
10
earnings 
per share
2002
£'000
471
942
1,413
2003
£'000
706
1,486
2,192
Basic earnings per share
Earnings attributable to shareholders
Dilutive effect of options
Diluted earnings per share
Basic earnings per share
Earnings attributable to shareholders
Dilutive effect of options
Diluted earnings per share
Underlying earnings per share represents basic earnings per share before goodwill amortisation,
3.92 pence (2002: 2.80 pence).  This is presented to show more comparable and representative
information on the underlying trading activities.
2003
Per share
amount (pence)
11.17
-
11.08
2002
Per share
amount (pence)
7.69
-
7.61
Weighted average
number of shares
118,587,481
1,034,335
119,621,816
Weighted average
number of shares
116,926,971
1,233,165
118,160,136
Earnings
£'000
13,250
-
13,250
Earnings
£'000
8,994
-
8,994 FINANCIAL STATEMENTS
SECTION TEN_PAGE FIFTY NINE
59
Notes to the financial statements
11
intangible
fixed assets
Goodwill  
£'000
66,109
35,603
147
101,859
5,197
4,650
23
9,870
91,989
60,912
Group
Cost
At 1 May 2002
Additions
Foreign exchange on translation differences
At 30 April 2003
Amortisation
At 1 May 2002
Charged in year
Foreign exchange on translation differences
At 30 April 2003
Net book value
At 30 April 2003
At 1 May 2002
Goodwill additions have arisen due to the purchase of subsidiary undertakings during the year. 
See Note 14 for details of these transactions.
Company
The Company has no intangible fixed assets. FINANCIAL STATEMENTS
SECTION TEN_PAGE SIXTY
60
Notes to the financial statements
Office
equipment
£'000
1,250
142
240
-
30
1,662
674
79
-
29
338
1,120
542
576
Fixtures 
and fittings
£'000
1,659
9
113
-
17
1,798
353
7
-
16
222
598
1,200
1,306
Motor
vehicles
£'000
214
-
-
(67)
-
147
125
-
(44)
-
32
113
34
89
Total
£'000
3,123
151
353
(67)
47
3,607
1,152
86
(44)
45
592
1,831
1,776
1,971
Shares in subsidiary
undertakings
£'000
47,325
4,524
51,849
Group
Cost
At 1 May 2002
Acquisition of subsidiaries
Additions
Disposals
Foreign exchange translation differences
At 30 April 2003
Depreciation
At 1 May 2002
Acquisition of subsidiaries
Disposals
Foreign exchange translation differences
Charged in year
At 30 April 2003
Net book value 
At 30 April 2003
At 1 May 2002
Company
Cost and net book value
At 1 May 2002
Additions (see Note 14 ii and below)
At 30 April 2003
12
tangible 
fixed assets
13
fixed assets
investments
At the balance sheet date the net book value of tangible fixed assets includes £162,000 (2002: £183,000) in
respect of assets held under finance leases.  Depreciation charged in the period on those assets amounted
to £66,000 (2002: £89,000).
Company
The Company has no tangible fixed assets. 13
fixed assets
investments
cont...
14
acquisition 
of subsidiary
undertakings
Notes to the financial statements
Proportion
held by 
the parent
company
100%
100%
100%
50%
100%
100%
Class of
share held
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary 
Ordinary 
Ordinary 
Proportion
held by
the Group
100%
75%
100%
100%
100%
100%
100%
100%
100%
100%
Country of
incorporation
England & Wales
England & Wales
Ireland
India 
Singapore
England & Wales
Australia 
Australia 
Australia 
Australia 
Australia 
England & Wales
England & Wales
England & Wales
England & Wales
Principal trading
subsidiaries
iSOFT plc
iSOFT Overseas Holdings Limited
iSOFT Limited
iSOFT R&D Private Limited
iSOFT Holdings (Singapore) Pte Limited
iSOFT Applications Limited* 
iSOFT Holdings Pty Limited
iSOFT Healthcare Systems Pty Limited
iSOFT Australia Pty Limited
Eclipsys Pty Limited
Paramedical Pty Limited 
ACT Medisys Limited
iSOFT Laboratory Systems Limited
Revive Group Limited
Revive Health Limited
* formerly known as Eclipsys Limited
i_Acquisition of the healthcare systems business of Northgate Information Solutions plc
On 31 July 2002 the Group acquired the healthcare systems business of Northgate Information Solutions
plc whose assets and liabilities were as follows:
Tangible fixed assets
Debtors
Creditors
Net separable assets acquired
Goodwill
Satisfied by:
Cash consideration
Acquisition costs paid
On 15 April 2003 the Group acquired shares issued by iSOFT Applications Limited for cash consideration
of £338,900.  The shares issued and acquired comprised of 19,900 ordinary shares of £1 each, 240,000 ‘B’
ordinary shares of £1 each and 79,000 fixed rate preference shares of £1 each.
The share capital of iSOFT Applications Limited at the balance sheet date comprises 20,000 ordinary £1
shares; 240,000 ‘B’ ordinary £1 shares and 79,000 fixed rate preference shares.  The fixed rate preference
shares are held by an Employee Benefit Trust.
FINANCIAL STATEMENTS
SECTION TEN_PAGE SIXTY ONE
61
Fair 
value
£'000
34
4,366
(2,322)
2,078
31,372
33,450
33,000
450
33,450
Fair value 
adjustment
£'000
(439)
(415)
-
(854)
Book 
value 
£'000
473
4,781
(2,322)
2,932 Tangible fixed assets
Debtors
Creditors
Net separable assets acquired
Goodwill
Satisfied by:
Cash consideration on acquisition
Shares issued on acquisition
Deferred consideration
Acquisition cost paid
The deferred consideration balance of £3,050,000 is payable upon satisfaction of certain performance
criteria by the acquired company and remains payable at the balance sheet date. 
The fair value adjustment relates to a write down following a review of the fixed asset register.
Since acquisition, Revive Group Limited has contributed £353,000 to the Group operating cash inflow.
FINANCIAL STATEMENTS
SECTION TEN_PAGE SIXTY TWO
62
Notes to the financial statements
14
acquisition 
of subsidiary
undertakings
cont...
Following a review of the fixed asset register and the trade debtors acquired, write downs were made to
reflect the fair value and recoverability of the assets as at the date of acquisition.
Since acquisition, the healthcare systems business of Northgate Information Solutions plc contributed
£3,507,000 to the Group operating cash inflow.
Pre-acquisition performance of the healthcare systems business of Northgate Information
Solutions plc
The summary trading results of the healthcare systems business of Northgate Information Solutions plc
for the preceding financial year ended 30 April 2002 and from 1 May 2002 to the date of acquisition are
as follows:
12 months to
30 April 2002
£'000
10,400
(8,200)
2,200
Period to
31 July 2002
£'000
2,185
(2,007)
178
Turnover
Operating costs
Profit before taxation
ii_Acquisition of Revive Group Limited 
On 27 November 2002 the Group acquired 100% of the issued share capital of Revive Group Limited
whose assets and liabilities were as follows:
Fair
value
£'000
31
333
(410)
(46)
4,231
4,185
500
500
3,050
135
4,185
Fair value
adjustment
£'000
(34)
-
-
(34)
Book
value
£'000
65
333
(410)
(12) Turnover
Operating costs
Operating loss
Net interest paid
Loss before taxation
Notes to the financial statements
Pre-acquisition performance of Revive Group Limited
The summary trading results of Revive Group Limited for the 18 month period ended 30 September 2002
and from 1 October 2002 to the date of acquisition are as follows:
18 months to
30 September 2002
£'000
1,730
(1,891)
(161)
(2)
(163)
Period to
27 November 2002
£'000
123
(287)
(164)
-
(164)
14
acquisition 
of subsidiary
undertakings
cont...
FINANCIAL STATEMENTS
SECTION TEN_PAGE SIXTY THREE
63
15
debtors
Company
2003
£'000
-
71,863
-
25
98
71,986
Group 
2003
£'000
10,859
-
566
175
19,513
31,113
Group
2002
£'000
7,347
-
-
485
10,815
18,647
Company
2002
£'000
-
24,848
-
43
112
25,003
Trade debtors
Amounts owed by Group undertakings
Deferred taxation (Note 18)
Other debtors
Prepayments and accrued income
In the normal course of its business the Group enters into financing arrangements with third party funders
in respect of specific customer contracts.  These transactions are entered into to provide PFI (Private
Finance Initiative) compliant finance for the capital cost of multi-year customer contracts.  In these
arrangements the present value of the customer receivable is matched by the amount due to the funding
provider.  Given the directly related nature of the transactions the Group does not recognise the equal and
opposite related balances.  This treatment is in accordance with FRS5.
Prepayments and accrued income includes a balance of £901,000 (2002: £676,000) due after one year. FINANCIAL STATEMENTS
SECTION TEN_PAGE SIXTY FOUR
64
Notes to the financial statements
Company
2003
£'000
42,171
-
10,000
52,171
Group 
2003
£'000
42,171
122
10,293
52,586
Group
2002
£'000
14,663
189
8,277
23,129
Company
2002
£'000
14,663
-
8,000
22,663
Bank loans (Note 19)
Amounts due under finance leases (Note 19)
Deferred consideration
The deferred consideration relates to an acquisition during the period.  See Note 14 ii.
16
creditors:
amounts falling
due within 
one year
Company
2003
£'000
10,219
-
501
510
-
-
2,779
-
1,486
1,050
16,545
Group 
2003
£'000
5,899
134
3,486
-
3,334
2,721
11,817
14,289
1,486
1,050
44,216
Group
2002
£'000
5,030
146
2,852
-
2,004
2,667
11,276
8,390
942
-
33,307
Company
2002
£'000
5,030 
-
214
203
-
-
3,671
-
942
-
10,060
Bank loans and overdrafts (Note 19)
Amounts due under finance leases (Note 19)
Trade creditors
Amounts owed to Group undertakings
Corporation tax
Other taxation and social security
Accruals and other creditors
Deferred income
Proposed dividends
Deferred consideration
17
creditors:
amounts
falling due
after one year Group
Balance at 1 May 2002
Amount charged to profit and loss (Note 8)
Balance at 30 April 2003
Accelerated capital allowances
Short-term timing differences
Deferred tax (asset)/liability
The deferred tax asset of £566,000 is included within debtors in the consolidated balance sheet.
There are other potential deferred tax assets totalling £500,000 (2002: £1,350,000) that have not been
recognised on the basis that the future economic benefit is uncertain.
Company
The Company has no deferred tax balance.
The acquisition agreement between KPMG and the Company for the purchase of iSOFT plc on 
28 May 1999 provided for an amount of deferred consideration to become payable in cash by the
Company in the event that the Company’s shares became listed on a recognised stock exchange on or
before 30 April 2003.  The amount of deferred consideration payable was calculated as a proportion of
the market capitalisation of the Company after certain deductions had been made.  This amount will
only become payable when the directors realise the whole or substantially the whole of their equity
shares into cash.
The directors are of the opinion that, taking into account advice received, the amount of deferred
consideration which will become payable under this agreement has not altered since the prior period
balance sheet date and will not exceed £8,000,000.  The amount payable is non interest bearing and
has not been discounted.
£293,000 (2002: £277,000) of the deferred consideration relates to the acquisition of Paramedical Pty
Limited on 21 December 2001 and is payable upon satisfaction of certain performance criteria by the
acquired company over the period to 3 December 2003.
The directors are of the opinion that the amount of deferred consideration payable under the agreement
has not altered from the terms of the agreement.  The amount is not payable until 14 days after
publication of the audited accounts of Paramedical Pty Limited for the period to 30 April 2004 but is
interest bearing from 3 December 2003 until the date payment is made.
The remaining £2,000,000 of the deferred consideration creditor relates to an acquisition during the
period.  See Note 14 ii.
Notes to the financial statements
17
creditors:
amounts
falling due
after one year
cont...
18
provision for
liabilities and
charges
Deferred tax
£'000
23
(589)
(566)
2003
£'000
(76)
(490)
(566)
2002
£'000
41
(18)
23
FINANCIAL STATEMENTS
SECTION TEN_PAGE SIXTY FIVE
65 FINANCIAL STATEMENTS
SECTION TEN_PAGE SIXTY SIX
66
Notes to the financial statements
19
borrowings
Company
2003
£'000
4,320
5,899
-
10,219
5,899
-
5,899
36,272
-
36,272
-
52,390
Group 
2003
£'000
-
5,899
134
6,033
5,899
94
5,993
36,272
28
36,300
-
48,326
Group
2002
£'000
-
5,030
146
5,176
4,406
98
4,504
9,007
91
9,098
1,250
20,028
Company
2002
£'000
-
5,030
-
5,030
4,406
-
4,406
9,007
-
9,007
1,250
19,693
Due within one year
Bank overdraft
Bank loans
Finance leases
After one but not more than two years
Bank loans
Finance leases
After two but not more than five years
Bank loans
Finance leases
More than five years
Bank loans
All of the Group bank loans and overdraft are secured by a floating charge over the assets of the Group
and are subject to interest at 0.95% over the bank’s base rate.
The Group bank loans consist of £25,500,000 outstanding on a term loan, repayable quarterly at
£1,500,000 with final payment due on 31 July 2007 and a revolving credit facility of £30,000,000.  Sterling
Euros
Australian Dollars
Singapore Dollars
Indian Rupees
Notes to the financial statements
FINANCIAL STATEMENTS
SECTION TEN_PAGE SIXTY SEVEN
67
Floating interest rate
2002
£'000
19,693
-
T otal
2002
£'000
19,693
335
Sterling
– Loans
– Finance leases
Fixed interest rate 
2002
£'000
-
335
20
financial
instruments
The Group’s financial instruments comprise bank borrowings, some cash and various items, such as
trade debtors, trade creditors etc. that arise directly from its operations.  The Group does not use
derivative instruments in the course of its business.  Short-term debtors and creditors have been
excluded from all of the following disclosures except currency risk.  The Board considers that the fair
value of financial assets and liabilities is not materially different from the book value.  The main risks
arising from, and impacted by, the financial assets and liabilities of the Group are interest rate risk, foreign
currency risk and liquidity risk.  The Board reviews and agrees policies for managing these risks and they
are summarised below.
Interest rate risk
The Group finances its operations through a mixture of retained profits and bank borrowings.  There is
also a small amount of finance lease commitment.  The Group has arranged facilities whereby United
Kingdom held cash balances are used to net off the balance on the loans, with interest calculated on the
net balance.  Interest on all loans and overdrafts is charged at 0.95% over the base rate.
The interest rate exposure of the financial liabilities of the Group was as follows:
2003
£'000
-
256
2003
£'000
48,500
-
Total
2003
£'000
48,500
256
The only financial assets held by the Group are cash at bank.  Amounts held at the year end were:
2003
£'000
33,315
1,694
9,827
302
313
45,451
2002
£'000
19,814
-
3,728
-
171
23,713 Authorised
200,000,000 ordinary shares of £0.10 each
Allotted and fully paid 
123,822,436 (2002: 117,724,779) ordinary shares of £0.10 each
Shares issued during the period
On 27 November 2002 the Group issued 211,417 £0.10 ordinary shares as part consideration for the
purchase of Revive Group Limited.  See Note 14 ii.  The premium on the share issue, net of issue
costs, was taken to the merger reserve.
On 14 March 2003 the Group issued a further 5,886,240 £0.10 ordinary shares at £2.15 per share.  The
premium on the share issue, net of issue costs, was taken to the share premium account. 
FINANCIAL STATEMENTS
SECTION TEN_PAGE SIXTY EIGHT
68
Notes to the financial statements
Currency risk
The Group is exposed to translation and transaction foreign exchange risk.  The Group reviews regularly
its exposure to translation risk and where appropriate will match this risk with an appropriate level of
borrowings in the same currency.  If necessary, transaction risk would be minimised by use of the forward
hedge market.
Included in trade debtors is a balance of £222,000 (2002: £103,000) in Euros and £45,000 (2002: £35,000)
in South African Rands held in a UK operating company.
Liquidity risk
Group policy is to maintain a mix of short, medium and long term borrowings with their bankers.
Flexibility is achieved by use of a revolving credit facility and a fixed term loan facility.  Details of the year
end position, which is in accordance with this policy, are given in Note 19.
The revolving credit facility is subject to review in July 2005.  The fixed term loan expires in July 2007. 
Maturity of financial liabilities
The Group’s financial liability analysis at 30 April 2003 is set out in Note 19.
20
financial
instruments
cont...
21
share capital
2003
£
20,000,000
2003
£
12,382,244
2002
£
20,000,000
2002
£
11,772,478 Notes to the financial statements
FINANCIAL STATEMENTS
SECTION TEN_PAGE SIXTY NINE
69
22
share options
23
share premium
account and
reserves
The following options are outstanding under the iSOFT Group Number 3 Executive Share Option Scheme,
which is an unapproved scheme.  Exercise of these options is subject to employees meeting individual
performance criteria and also to the performance of the Group.  Options include directors’ share options.
All options were granted at market value at the date of grant.
Date of Number Subscription Personal Period of option
grant price per share performance
(pence) period end
11 Jul 2000 1,879,000 110.0 10 Jul 2001 11 Jul 2003 – 10 Jul 2010
20 Dec 2000 250,000 174.0 19 Dec 2001 20 Dec 2003 – 19 Dec 2010
13 Apr 2001 110,000 189.0 12 Apr 2002 13 Apr 2004 – 12 Apr 2011
22 Jun 2001 850,000 249.0 21 Jun 2002 22 Jun 2004 – 21 Jun 2011
11 Oct 2001 1,413,000 217.5 10 Oct 2002 11 Oct 2004 – 10 Oct 2011
30 Sept 2002 1,217,816 151.3 29 Sept 2003 30 Sept 2005 – 30 Sept 2012
11 Oct 2002 480,176 145.0 10 Oct 2003 11 Oct 2005 – 10 Oct 2012
27 Nov 2002 474,250 233.0 26 Nov 2003 27 Nov 2005 – 26 Nov 2012
The following options are outstanding under the iSOFT Group Number 2 Executive Share Option Scheme
which is an Inland Revenue approved share option scheme.
Date of Number Subscription Personal Period of option
grant price per share performance
(pence) period end
30 Sept 2002 517,184 151.3 29 Sept 2003 30 Sept 2005 – 30 Sept 2012
11 Oct 2002 19,824 145.0 10 Oct 2003 11 Oct 2005 – 10 Oct 2012
27 Nov 2002 25,750 233.0 26 Nov 2003 27 Nov 2005 – 26 Nov 2012
These share schemes have been set up under a joint election to transfer the liability for employers NI to
the employee.  In accordance with UITF25 no NI cost has been recognised in the accounts.
All options granted are subject to the Group performance condition, measured over three years from the
date of grant.
No options were exercisable during the period. 
Group
At 1 May 2002
Retained profit for the period
Exchange differences
Premium on shares issued net of issue costs
At 30 April 2003
Company
At 1 May 2002
Retained profit for the period
Premium on shares issued net of issue costs
At 30 April 2003
Profit and loss
account
£'000
11,358
11,058
670
-
23,086
Profit and loss
account
£'000
2,503
2,432
-
4,935
Merger
reserve
£'000
7,204
-
-
479
7,683
Merger
reserve
£'000
7,204
-
479
7,683
Share premium
account
£'000
18,327
-
-
11,792
30,119
Share premium
account
£'000
18,327
-
11,792
30,119 FINANCIAL STATEMENTS
SECTION TEN_PAGE SEVENTY
70
Notes to the financial statements
Operating profit
Amortisation of intangible assets and goodwill
Depreciation of tangible fixed assets
Increase in debtors
Increase in creditors
(Profit)/loss on sale of fixed assets
Foreign exchange differences
Net cash inflow from continuing operating activities
24
reconciliation
of operating
profit to net
operating
cash flows
25
analysis of
change in net
funds/(debt)
26
reconciliation of
net cash flow to
movement in
net (debt)/funds
2002
£'000
13,148
3,271
513
(4,357)
4,180
78
72
16,905
2003
£'000
20,950
4,650
592
(7,483)
4,908
(3)
(76)
23,538
Increase in cash
Cash (inflow)/outflow from (increase)/decrease in debt
(Increase)/decrease in net (debt)/funds from cash flows
Debt acquired with subsidiary
New finance leases incepting in the period
Finance lease reduction by way of asset disposal 
Translation difference
Amortisation of loan arrangement fees
(Increase)/decrease in net (debt)/funds in the period
Net funds/(debt) at 1 May 2002 and 1 May 2001
Net (debt)/funds at 30 April 2003 and 30 April 2002
2002
£'000
13,815
3,648
17,463
(178)
(120)
48
-
(14)
17,199
(13,514)
3,685
2003
£'000
21,238
(28,205)
(6,967)
-
(42)
-
500
(51)
(6,560)
3,685
(2,875)
Non cash
movements
£'000
-
-
(51)
(42)
(93)
(93)
Exchange
movement
£'000
500
500
-
-
-
500
Cash at bank and in hand
Net cash
Bank and other loans
Finance leases
Borrowings
Net funds/(debt)
Cash flow
£'000
21,238
21,238
(28,326)
121
(28,205)
(6,967)
At 1 May 
2002
£'000
23,713
23,713
(19,693)
(335)
(20,028)
3,685
At 30 April
2003
£'000
45,451
45,451
(48,070)
(256)
(48,326)
(2,875) FINANCIAL STATEMENTS
SECTION TEN_PAGE SEVENTY ONE
71
Notes to the financial statements
2002  
£'000
203
651
854
£'000 
143
279
422
£'000 
49
45
94
Annual property rentals on leases which expire:
Within one year 
Between one and five years
Annual equipment rentals on leases which expire:
Within one year
Between one and five years
Annual motor vehicle rentals on leases which expire:
Within one year
Between one and five years
At the year end neither the Group nor the Company had entered into any capital commitments.
A contingent liability of £195,000 (2002: £184,000) existed at the year end.  This value represents the
element of the deferred consideration relating to the acquisition in December 2001 of Paramedical Pty
Limited, which becomes payable as a result of certain performance criteria being met for the period to 30
April 2004, the payment of which is not considered probable.
There were no related party transactions during the period.
27
operating lease
commitments
28
capital
commitments
29
contingent
liabilities
30
related party
transactions
2003
£'000
214
449
663
£'000 
126
277
403
£'000 
24
15
39 PAGE SEVENTY TWO
FIVE YEAR SUMMARY
72
Turnover
2003 £91.5m
2002 £60.1m
2001 £31.1m
2000 £17.0m
1999 £11.1m
Operating profit
2003 £21.0m
2002 £13.1m
2001 £5.8m
2000 £3.1m
1999 £1.1m
Normalised profit before tax
1
2003 £23.5m
2002 £15.4m
2001 £7.2m
2000 £3.1m
1999 £0.8m
Underlying earnings per share
1
2003 15.09p
2002 10.49p
2001 4.77p
2000 2.46p
1999 n/a
2
Average monthly number of employees
2003 580
2002 430
2001 252
2000 162
1999 81
1 
stated before amortisation of goodwill and exceptional items
2 
comparative EPS for 1999 is not applicable as period was pre-flotation PAGE SEVENTY THREE
73
FIVE YEAR SUMMARY
1 
stated before amortisation of goodwill and exceptional items
2 
comparative EPS for 1999 is not applicable as period was pre-flotation
2001
£m
31.1
5.8
7.2
2002 
£m
60.1
13.1
15.4
2000
£m
17.0
3.1
3.1
Results
Turnover
Operating profit
Normalised profit before tax
1
2003
£m
91.5
21.0
23.5
1999
£m
11.1
1.1
0.8
2001
£m 
3.07p
3.06p
4.77p
13.5
48.5%
8.3
252
2002 
£m 
7.69p
7.61p
10.49p
(3.7)
(7.6)%
16.9
430
2000
£m 
1.95p
1.95p
2.46p
3.6
37.2%
(1.2)
162
Key Statistics
Earnings per share
Diluted earnings per share
Underlying earnings per share
1
Net debt/(funds)
Net gearing
Net cash flow from operating activities
Average monthly number of employees
2003
£m
11.17p
11.08p
15.09p
2.9
3.9%
23.5
580
1999
£m 
n/a
2
n/a
2
n/a
2
1.2
225.8%
2.9
81 PAGE SEVENTY FOUR
COMPANY INFORMATION
74
Board of directors
Roger Dickens
Executive Chairman
Patrick Cryne
Chief Executive Officer
Tim Whiston
Group Finance Director
Steve Graham
Chief Operating Officer 
Non-executive directors
Digby Jones
Eurfyl ap Gwilym
Geoff White
Rene Kern
Company Secretary 
Tim Whiston
Senior non-executive director 
Digby Jones
Audit Committee
Eurfyl ap Gwilym
Committee Chairman
Digby Jones
Geoff White
Appointments and
Remuneration Committee
Geoff White
Committee Chairman
Digby Jones
Eurfyl ap Gwilym
Financial advisors and stockbrokers
Hoare Govett Limited
250 Bishopsgate
London EC2M 4AA
Auditors 
RSM Robson Rhodes LLP
Colwyn Chambers
19 York Street
Manchester M2 3BA
Solicitors
Ashurst Morris Crisp
Broadwalk House 
5 Appold Street 
London EC2A 2HA
Bankers
Lloyds TSB Bank plc
25 Gresham Street
London EC2V 7HN
Remuneration advisors
New Bridge Street Consultants
20 Little Britain 
London EC1A 7DH
Public relations 
Financial Dynamics
Holborn Gate
26 Southampton Buildings
London WC2A 1TB
Registrars
Lloyds TSB Registrars
The Causeway Worthing
West Sussex BN99 6DA
Registered & Head Office
iSOFT Group plc 
Bridgewater House
58-60 Whitworth Street
Manchester M1 6LT
Registered number
3716736
Website
www.isoftplc.com PAGE SEVENTY FIVE
75
NOTABLE DATES
JUNE 2003 PRELIMINARY RESULTS ANNOUNCED
APRIL 2003 FINANCIAL YEAR END
JULY 2003 ANNUAL GENERAL MEETING
JULY 2003 FINAL DIVIDEND PAYMENT
OCTOBER 2003 FINANCIAL HALF YEAR
DECEMBER 2003 INTERIM RESULTS ANNOUNCED
JANUARY 2004 INTERIM DIVIDEND PAYMENT
APRIL 2004 FINANCIAL YEAR END
2003
2004
J MAJASOND JF M A Bridgewater House, 58-60 Whitworth Street
Manchester, England, M1 6LT
T +44 (0) 161 935 8800  F +44 (0) 161 233 8899
www.isoftplc.com