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www.kleenezeplc.co.uk
Kleeneze plc
Farepak House 
Westmead Drive
Westlea 
Swindon SN5 7YZ
Kleeneze plc Annual Report 2005
Kleeneze plc Annual Report 2005
kleeneze AR Cover  31/8/05  12:22 pm  Page a Contents
1 Highlights
2 Kleeneze Group at a Glance
4 Chairman’s Statement
7 Chief Executive’s Review
16 Finance Review
18 Corporate Social Responsibility Report
19 Directors
20 Directors’ Remuneration Report
24 Report of the Directors
26 Corporate Governance Statement
28 Statement of Directors’ Responsibilities
29 Independent Auditors’ Report to the
Members of Kleeneze plc
30 Consolidated Profit and Loss Account
31 Consolidated Balance Sheet
32 Company Balance Sheet
33 Consolidated Cash Flow Statement
34 Consolidated Statement of Total
Recognised Gains and Losses
34 Reconciliation of Movement on
Shareholders’ Funds
35 Notes Forming Part of the Financial
Statements
58 Advisers
58 Financial Calendar
59 Notice of Meeting
Sourcing
Catalogue home shopping
Internet retailing 
Television shopping
We have many years’
experience in customer
support, offering a 
24 hour, seven days 
a week service via 
both the internet 
and telephone.
We opened a new
fulfilment centre in Bristol,
increasing operational
efficiencies in 2004. 
The Group recently
entered into a long term
contract with Amtrak. 
Next day delivery 
is offered by all our
businesses as standard.
Kleeneze’s network of
distributors provide free
delivery of product to the
homes of their customers.
Our strategy is to use a 
multi-channel approach to home
retailing to bring a growing
variety of products to our
expanding customer base 
across Europe. 
Our business streams have many
key processes in common –
sourcing, ordering, fulfilment 
and delivery.
Our service is exceptional,
with guaranteed following day
delivery of products.
Sales 
channels
Ordering Fulfilment Delivery
The Group purchases
from the UK and
overseas. Our
experienced buying
teams are successful 
in sourcing many
innovative products. 
Picture on page 18 of Megan Chaplin courtesy
of Richard Hudd/Weston Daily Press.
Designed and produced by Sheppard Day
kleeneze AR Cover  31/8/05  12:22 pm  Page b Kleeneze Annual Report 2005 | 1
£175.9m
Turnover from continuing operations 
up 10.7% to £175.9 million 
(2004: £158.9 million)
3.30p
Total dividend for the year up 10% to 
3.30 pence (2004: 3.0 pence)
£5.9m
Profit before tax of £5.9 million 
(2004: loss £2.0 million)
10.21p
Basic earnings per share of 10.21 pence
(2004: loss 5.76 pence per share) and
normalised basic earnings per share 
of 10.17 pence (2004: 12.85 pence)
2005 has been a very exciting year when we
have laid the foundations for the future. Against
a very weak retailing environment in the UK,
we have returned Kleeneze Europe to growth. 
The acquisitions of I Want One of Those.com 
and Kitbag, the launch of eeZee tv and the
successful start to Kleeneze Europe’s continental
European expansion are major steps in creating
a European home shopping group.
The combination of our three retailing platforms 
of Catalogue Home Shopping, Internet Retailing
and Television Shopping with our core skills 
of consumer marketing, product sourcing 
and fulfilment, puts us in a strong position 
to accelerate growth.
Highlights 2 | Kleeneze Annual Report 2005
Kleeneze Group at a Glance
Kleeneze 
Europe
Farepak
Kleeneze Europe is a leading network
marketing company with 15,500
self-employed distributors operating 
in the UK, Ireland and, most recently,
the Netherlands. Kleeneze Europe’s
success is based on the combination 
of its strong retail proposition, the 
network opportunity and the operational
infrastructure which the business
continues to build on. 
www.kleeneze.net
£88.9m
turnover
15,500
distributors
£81.7m
turnover
56,000
agents 
Farepak is a Christmas savings club
business where customers place orders 
for a wide range of products including
shopping vouchers, Christmas hampers 
and other gifts for which they pay in weekly
instalments and then have delivered 
to their door in time for Christmas.
www.farepak.co.uk Kleeneze Annual Report 2005 | 3
IWOOT Kitbag eeZee tv
Kitbag is one of Europe’s largest online
sports retailers, delivering a broad range 
of sportswear products from the leading
sports brands to an audience of
customers worldwide. Kitbag has the
exclusive rights to operate the official
website stores for FC Barcelona, Reebok,
Manchester United, Chelsea Football Club,
UEFA.com, Puma and Nike Football.
www.kitbag.com
£4.7m
turnover 
140,000
active customers 
£0.5m
turnover
142,000
active customers
£0.3m
turnover 
1,000
products at time of launch
The Group is structured into three customer
facing divisions: Catalogue Home Shopping
(comprising Kleeneze Europe and Farepak);
Internet Retailing (comprising I Want One of
Those.com and Kitbag) and Television Shopping
which incorporates eeZee tv.
I Want One Of Those.com (“IWOOT”) is 
the UK’s most visited gifts and gadgets
website. IWOOT features products across
nine categories: Gadgets & Gizmos,
Ultimate Toys, Games & Puzzles, Lifestyle 
& Home, Kitsch & Daft, Outdoor & Travel,
Office Toys, Gorgeous Gifts and Experiences
& Adventures. The product range 
is promoted via a catalogue, online
partnerships, email marketing and
affiliate networks.
www.iwantoneofthose.com
eeZee tv broadcasts 14 hours a day of
live TV shopping on Sky digital channel
659. The channel is hosted by a team 
of experienced presenters and sells 
a broad range of household and personal
products. eeZee tv provides cross-selling
opportunities for the Group and allows
testing of new lines before inclusion in
Kleeneze Europe’s catalogues.
www.eezeetv.com 4 | Kleeneze Annual Report 2005
Overview
During the year ended 28th April 2005 
we have significantly re-shaped the Group
to become a home shopping specialist,
selling across three channels: Catalogue
Home Shopping, Internet Retailing and
Television Shopping, using our core skills 
of consumer marketing, product sourcing
and next day delivery. We have achieved
this through the launch of Kleeneze
Europe in the Netherlands, the
acquisitions of I Want One of Those.com
Limited (“IWOOT”) and Kitbag Sports
Limited (“Kitbag”), and the launch of
eeZee tv LLP (“eeZee tv”), our joint
venture television shopping channel
broadcasting on Sky Channel 659.
To reflect the re-shaping of the 
Group into a home shopping specialist,
we are recommending to shareholders 
that Kleeneze plc be re-named European
Home Retail plc effective from the 
Annual General Meeting (“AGM”) 
on 28th September 2005.
The first step in the creation of the 
newly focused Group was the September
2004 launch of Kleeneze Europe in the
Netherlands. This is our first operation 
in continental Europe and trading has
begun well with 2,000 distributors at 
the end of April. The growth in distributor
numbers in the Netherlands was
accompanied by an increase in distributor
numbers in the UK and Ireland where the
downward trend over the last 18 months
was reversed in the second half of the
year such that the number of active
distributors at the end of April was
13,524 (2004: 13,397).
On 25th October 2004 we acquired IWOOT
for £6.0 million in cash to be paid over a
three year period plus performance related
deferred consideration of up to £4.65 million,
payable over three years. IWOOT is the
number one visited site in its sector
(source: Hitwise), selling gifts, gadgets and
lifestyle accessories on its award-winning
website www.iwantoneofthose.com.
We commenced live broadcasting of eeZee 
tv on 1st March 2005. eeZee tv provides
both entry into the fast-growing television
shopping market and another route to
source and develop new products for the
Kleeneze network.
On 1st April 2005 we acquired Kitbag 
for £7.2 million in cash plus 1.3 million
shares in Kleeneze plc. Kitbag is a leading
internet retailer of sports and fitness
merchandise through www.kitbag.com.
Kitbag also has long term contracts with
leading football clubs for the provision of
their online and mail order sales in the UK
and certain other territories. The football
clubs include Manchester United, Chelsea
and Barcelona.
These acquisitions enable us to develop 
a range of products that can be sold
across all of our distribution channels. 
This completes the virtuous circle of a
product’s life beginning on the internet,
migrating to television shopping, then
retailed through Kleeneze’s catalogues. 
Against the background of a significant 
fall in hamper volumes at Farepak in 
April 2005 we took the decision to close
production of hampers in Swindon and
agreed a three year outsourcing contract.
We have been working hard to reduce 
the fixed cost base of Farepak for the 
last two years. This action marks a major
step forward in this process, freeing
management to focus on the marketing 
of both the savings club business 
and our nascent third party contract
voucher business.
Results for the year
Turnover from continuing operations for 
the year was up 10.7% to £175.9 million
(2004: £158.9 million) including 
£5.3 million from acquisitions during 
the year. Excluding acquisitions, turnover
was up 7.3%. 
Operating profit from existing operations
before goodwill amortisation and exceptional
items was £7.7 million (2004: £7.9 million)
excluding losses of £0.6 million from
acquisitions during the year. 
Profit before tax from continuing
operations before goodwill amortisation
and exceptional items fell to £7.0 million
(2004: £8.2 million), principally due to 
the start-up losses from our new joint
venture television shopping business,
eeZee tv, where our share of losses was
£0.8 million (2004: nil) in the first six 
months of trading.
Profit after tax was £4.8 million 
(2004: loss £2.7 million). Profits of 
£1.4 million were generated on the
disposal of shares in Premier Direct 
Group plc and a surplus property. 
These were offset by £0.5 million incurred 
in closing production at Farepak; 
£0.3 million of goodwill amortisation;
£0.8 million of start-up costs in the
Netherlands and Kleeneze TV; £0.3 million
of restructuring costs across the Group
following the acquisitions made during
the year and other costs of £0.5 million.
There was also a tax credit of £1.1 million.
Basic earnings per Ordinary share were 
10.21 pence (2004: loss 5.76 pence).
The Group generated cash from 
continuing operations of £3.2 million
(2004: £6.2 million), after the cash flow
relating to exceptional costs. Following
expenditure of £13.1 million on
acquisitions during the year, including 
the investment in eeZee tv, the Group 
had a cash outflow before financing of
£9.3 million (2004: inflow £4.8 million). 
Chairman’s Statement Kleeneze Annual Report 2005 | 5
During the year we significantly re-shaped the
Group to become a home shopping specialist
and we are recommending that the Group 
be re-named European Home Retail plc in
September 2005.
Net debt at 28th April 2005 rose to 
£27.0 million (2004: £11.2 million)
including £5.7 million of discounted loan
notes issued to the vendors of IWOOT. 
At 28th April 2005 the Group’s net
liabilities decreased to £7.5 million 
(2004: £12.8 million).
Dividend
The Board is recommending a final
dividend of 2.23 pence per Ordinary share 
(2004: 2.0 pence), which together with the
interim dividend of 1.07 pence per Ordinary
share (2004: 1.0 pence) will result in a
dividend of 3.30 pence per Ordinary share
for the year as a whole (2004: 3.0 pence),
an increase of 10%.
The dividend is payable on 3rd October
2005 to shareholders on the register 
on 15th July 2005.
The Board
Chris Hulland will be leaving the Group and
his date of departure will be determined
upon the appointment of his successor. 
He has worked for the Group in his current
capacity for 17 years and we wish him well
for the future.
Stephen Roberts has decided not to seek 
re-election and will, therefore, step down at
the close of the AGM on 28th September
2005. Stephen has been a non-executive
director for 20 years and we would like to
take this opportunity to thank him for his
very valuable contribution over that period.
Michael Johns has been invited to 
join the Board on 28th September 
2005 as a non-executive director
representing the Johnson family interests.
He is senior partner at Kirkpatrick 
& Lockhart Nicholson Graham LLP 
and is also a non-executive director 
of Merchant Retail Group plc. Michael,
aged 61, qualified as a lawyer in 1968
and specialises in corporate finance. 
The Board proposes Michael Johns for
election at the AGM. 
Nicholas Gilodi-Johnson retires by rotation
and, being eligible, is standing for re-election.
People
We appreciate that our principal assets are
our people and I would like to record my
thanks to all of them for their continued
support and hard work during the last year.
I would also like to take this opportunity 
to welcome to the Group everyone who
works for IWOOT, Kitbag and eeZee tv and
thank them for their contribution in their
first months as part of the Group.
Resolutions at the AGM
We are proposing three Resolutions 
at the AGM as Special Business. I am
summarising them below:
Resolution 9 proposes that the name of the
Company be changed from Kleeneze plc to
European Home Retail plc in order to reflect
the changed nature of the Group’s activities.
Resolution 10 proposes that the Articles 
of Association be amended to continue the
limit of £60 million on the Group’s borrowing
powers up to 30th April 2008. This proposal
reflects the revised financial structure of the
Group following the acquisitions that have
been made this year. The Resolution also
proposes that the limit of £250,000 on
directors’ fees be increased to £350,000.
Resolution 11 proposes that the directors
be authorised to make an offer to 
purchase the issued Preference Shares 
at their nominal value of £1 per Preference
Share. This follows representation to the
Company by certain of the holders wishing
to sell their shares.
Prospects
The return to growth at Kleeneze Europe
has been driven by a combination of
increased distributor numbers and a
further increase in average sales per
retailing distributor. The acquisitions 
of IWOOT and Kitbag together with the
launch of eeZee tv will improve our ability
to source a wider range of new products
for our catalogues. This should help 
to drive further increases in Kleeneze
Europe’s turnover. We will also build on 
our successful launch in the Netherlands 
with further expansion later this year.
The decision to outsource production 
of hampers at Farepak further reduces 
our fixed cost base, thereby significantly
de-risking the business in the future and
enabling us to focus more clearly on
strengthening our voucher business.
Both IWOOT and Kitbag should benefit
from the growth in internet shopping 
and we are in a strong position to take
advantage of the growth in this sector. 
At eeZee tv we are focusing on an 
offering of daily specials, the “Big eeZee”,
to increase the number of viewers.
We believe that the new shape of the
Group will enable us to grow more quickly
and take advantage of the increase in the
Internet Retailing and Television Shopping
markets. Our priority in the period ahead is
to realise the potential of the acquisitions
made last year and to build on the good
start to this new financial year.
Sir Clive Thompson
Chairman
10th August 2005 “I was very impressed 
with the range of 
great value, practical 
products offered in the 
Kleeneze catalogue.”
Karina Beesley
Distributor and Customer, Kleeneze
Product sourcing:
International
Kleeneze Europe sources 
a varied product range from
around the globe. The buying
and merchandising teams 
are particularly focused at
developing direct supply from
high quality Far East sources.
Sales channel:
Catalogue
Kleeneze Europe produces 
a range of catalogues that
the distributor places with the
customer. Our catalogues 
are distributed across the UK,
Republic of Ireland and 
the Netherlands.
Ordering:
Distributor
The customer places their
order with the distributor 
who in turn places their order
with Kleeneze Europe. Over
97% of distributor orders are
placed via the internet.
Fulfilment:
Distribution Centre
The order is picked and
packed from Kleeneze
Europe’s new fulfilment centre
in Bristol and then dispatched
to the distributor within 
24 hours. 
Following day delivery:
Distributor
The distributor receives the
order and then delivers to 
the customer. That customer
order now carries the
additional reassurance 
of the newly awarded Office 
of Fair Trading code. Kleeneze Annual Report 2005 | 7
Chief Executive’s Review
In order to reflect the re-shaping of the
Group into a home shopping specialist
selling through three channels: Catalogue
Home Shopping, Internet Retailing and
Television Shopping, I am setting out 
my Chief Executive’s Review for these
divisions as follows:
Catalogue Home Shopping
The Catalogue Home Shopping division
comprises Kleeneze Europe and Farepak. 
Kleeneze Europe
Kleeneze Europe provides good value,
everyday products through a range of
catalogues delivered direct to the home 
by self-employed distributors covering 
the UK, Ireland and the Netherlands.
Turnover at Kleeneze Europe grew 7.6% 
to £88.9 million (2004: £82.6 million) 
and the UK and Ireland grew by 6.4% 
to £87.9 million (2004: £82.6 million).
Operating profit before exceptional 
items was up 12.1% to £7.4 million 
(2004: £6.6 million). 
The number of distributors at the year 
end in the UK and Ireland rose slightly 
to 13,524 (2004: 13,397) as we reversed
the downward trend seen over the last 
18 months. The effort that we have put into
improving the retention rates of distributors
has started to have a positive effect on 
the distributor base. These efforts are
continuing into the new year as we are
providing more training and support.
In October 2004 we successfully launched
Kleeneze Europe in the Netherlands and 
at the year end we had 2,000 distributors.
The catalogues and range of products have
been well received by the Dutch consumers
and we have already issued our third
catalogue, with two more planned for 
the remainder of this year. Before the
exceptional charge of £0.5 million reflecting
the write-off of the start-up costs, the Dutch
business was profitable. This is an excellent
start to our new continental European
business and we are on track to expand
our operations further later this year.
In September 2004 we acquired the 
assets and trademarks of Cabouchon for
£0.4 million in cash. We have re-launched
the brand with a new catalogue updating
the product range. This should re-stimulate
interest in the brand and drive recruitment
of consultants, which had slowed down 
at the end of last year. Although the brand
and the network remain separate, we have
integrated the operations with those of
Kleeneze Europe.
During the year Kleeneze Europe and its
distributors raised £3,000 for Macmillan
Cancer Relief and £30,000 for the Tsunami
Disaster Committee Appeal.
We have improved the operating margin 
at Kleeneze Europe to 8.3% (2004: 8.0%),
primarily due to the first full year of
efficiencies from the new distribution
centre. This improvement in margin was
achieved despite significant increases 
in distribution costs, which prevented a
larger improvement. The efficiencies should
continue to increase and we expect to see
further improvements in margin in the
current year.
Kleeneze Europe continues to be a
dynamic business, which has grown 
year on year despite poor retailing
conditions in the UK. We have launched
successfully in continental Europe and 
the potential of the European market 
is enormous. We have the capacity 
to increase our turnover significantly 
in the UK and intend to distribute from
continental Europe in the near future.
2005 has seen the Group make significant
progress towards becoming a leading European
home shopping specialist. 
Kim Rawson
Deputy Managing Director
Kleeneze Europe
“This has been a particularly exciting 
year for Kleeneze Europe, and we 
are all very focused on maximising 
the potential from our market expansion 
in the UK, Republic of Ireland and 
the Netherlands. Our distributors remain 
key to that development.”
25,000
people attended our training conferences 
during the year 8 | Kleeneze Annual Report 2005
Chief Executive’s Review continued
Farepak
Farepak sells Christmas hampers, gifts
and shopping vouchers on a monthly
instalment basis through catalogues
distributed by independent agents across
the UK. Farepak operates two brands,
Farepak and Home Farm, which is 60%
owned by Findel plc.
Turnover at Farepak grew by 7.1% to 
£81.7 million (2004: £76.3 million) but
operating profit before goodwill amortisation
and exceptional items fell to £0.2 million 
(2004: £1.3 million).
The year was very difficult for Farepak 
as agent numbers fell 6% to 55,931 
(2004: 59,429) and, more importantly,
the number of hampers sold, as opposed 
to shopping vouchers, fell by 16%. 
As a result of this decline, which has
accelerated in the current year, we have
closed the production of hampers at
Farepak and agreed a three-year contract
with FHSC Limited, another Christmas
hamper company, under which they will
produce all of our Christmas savings club
hampers. This will reduce our fixed costs
significantly and allow us to react more
flexibly to further declines in hamper
volumes. We had to make 34 people
redundant and these redundancies,
together with other one-off costs, have
resulted in the exceptional charges 
of £0.5 million. We continue to examine 
the way in which we operate to react 
to the changes in the market place.
The ongoing decline in hamper volumes 
has resulted in shopping vouchers now
representing 80% (2004: 76%) of total
turnover. This is a trend that has been seen
over the last five years and will continue 
in the future. 
To take advantage of this trend we
launched a new voucher-only offering,
Freedom, which has the widest range of
shopping vouchers in the market place and
is aimed at a younger market than our
traditional Farepak customers. Although 
it is early days, we are pleased with the
response rate in the first year. We have 
also started a third party voucher operation
providing vouchers for businesses 
and charities.
Farepak employees are still proud to be
supporting Macmillan Cancer Relief and to
date more than £16,500 has been raised
through Agent donations and staff activities. 
Farepak was also pleased to give assistance 
in the aftermath of the Tsunami disaster 
at the end of 2004 and was able to offer
much needed packaging to local volunteer
aid organisations who were collecting 
and dispatching vital supplies to the
stricken areas. 
As we have said before, the Christmas
hamper market is in decline as customers
are changing the way in which they shop for
Christmas. Savings clubs are, however, still
popular as people become more concerned
about their own levels of personal debt, but
any future growth in the market as a whole
will only come from low margin shopping
voucher sales. The closure of hamper
production will significantly de-risk the
business in the future and allow us to 
focus more on growing our shopping
voucher operation.
400,000
Farepak sorted and dispatched over 400,000
gift vouchers on 19th October 2004
Nicholas Gilodi-Johnson
Managing Director
Farepak
“We have embraced the migration of sales
from hampers to lower margin shopping
vouchers by launching Freedom, a new
catalogue which offers our customers the
widest range of vouchers available in the
market. Freedom represents an exciting
growth opportunity for us to target a 
younger audience new to the savings club
market, thereby enabling us to expand our
customer base.” “The vouchers I saved
for helped me give 
my family a Christmas
to remember.”
Joan Elliott
Agent and Customer, Farepak
Product sourcing:
Retailers
Our product sourcing expertise
is combined with that of Findel
plc, our joint venture partner.
Farepak is responsible for the
sourcing of the hampers and
vouchers, while Findel sources
the non-food product ranges. 
Sales channel:
Catalogue
Farepak’s Christmas catalogue
is published in September.
Agents then show the
catalogue to friends, family
and work colleagues and
collect orders from them.
Ordering:
Agent
Customers place orders with
their agents by the start of 
the year, paying in 45 weekly
instalments, collected by their
agent. Our service centre
manages our relationship with
56,000 agents.
Fulfilment:
Distribution Centre
Hampers are sized, picked 
and packed from August
through to December. Voucher
sorting and dispatch takes
place in a secure environment.
Delivery:
In order to deliver our hampers
to agents in peak condition,
Farepak uses the off season
capacity of various distribution
companies. Hampers and
other gifts are delivered to
agents who then deliver in
person to their customers. “I can keep up to 
date with the latest
gadgets from IWOOT
purchased using 
my own computer.”
Sarah Willingham
Customer, IWOOT
Product sourcing:
Location
The buying team source
products worldwide attending
trade fairs in the gifts,
homewares, consumer
electronics and toy sectors. 
Sales channel:
Online
IWOOT has several sales
channels to market: online
channels including email
newsletters and partnerships,
and offline channels including 
a catalogue.
Ordering:
Website
Customers can purchase 
via the website (85%) or by
telephone to IWOOT’s 24 hour
call centre (15%). Our service
centre also handles incoming
query calls and emails.
Fulfilment:
Distribution Centre
IWOOT has its own fulfilment
centre in South London.
During 2005, the business
will move to larger premises
to provide increased capacity
for Christmas 2005.
Following day delivery:
Courier
All orders received by 5pm 
are dispatched for next day
courier service or Royal Mail
First-Class which accounts for
70% of all orders processed. Kleeneze Annual Report 2005 | 11
Internet Retailing
The Internet Retailing division comprises 
the recent acquisitions, IWOOT and Kitbag. 
IWOOT
IWOOT is the market leading internet
business selling a wide range of gifts 
and gadgets from its award-winning
website www.iwantoneofthose.com.  
Turnover for the six months post acquisition
was £4.7 million with an operating loss
before goodwill amortisation of £0.1 million.
We acquired IWOOT on 25th October
2004. Since acquisition we have
increased the product range on the
website by over 25% from 409 to 515
products at the end of April. The most
popular products over the last six months
have included Aurora Mood Clocks and
Phlat Balls, illustrating the wide range of
appeal of our products. IWOOT had its
most successful Christmas in its history 
and during the busiest week the website
handled 324,000 visitors with a
conversion rate of 6%. We are building 
on that success and turnover in the last
quarter of the year was up 80% on the
previous year, although the conversion 
rate has fallen, as expected, from the
seasonal peak.
We are improving the ways in which 
we communicate with our customers 
and as a result we have increased 
our customer database by 30%. A key
contributor to the increased database is
our high levels of service with guaranteed
next day delivery if products are ordered
before 5pm. We have also reviewed our
email campaigns with customers and
published a number of catalogues to
complement our online service. We are
improving the effectiveness of our website
adding increased functionality to the 
site such as the addition of a reminder
service for birthdays.
During the year we have seen significant
growth within our corporate sales
establishing working partnerships with 
a number of blue chip companies.
Established partnerships include
lastminute.com where we provide third
party products and fulfilment for their
website offering.
We have started the process of integrating
IWOOT into the Group and are increasing
the number of products sourced from 
the Far East using Kleeneze Europe’s
expertise. There will be further integration
of back office services during the
remainder of this year.
The cross-fertilisation of products has
already started and we have sold various
IWOOT products both on eeZee tv, during a
dedicated IWOOT hour, and through Kleeneze
Europe. In June this year we launched our
first Gifts and Gadgets flyer for the Kleeneze
Europe network and the initial reaction was
positive. We are planning another Gifts and
Gadgets catalogue for Christmas. We have
also introduced various cross-promotional
activities with Kitbag.
IWOOT is one of the leading internet
retailers in the fastest growing area of the
UK’s retail sector. We will continue to invest
in IWOOT to drive the business forward
more quickly and ensure that we can
develop more products for use across 
the Group.
8,000
over 8,000 orders dispatched on 
13th December 2004
Chief Executive’s Review continued
David Booth
Managing Director
IWOOT
“IWOOT continues to develop into one of 
the major brands on the internet high street
having gained the number one position for 
gifts and flowers over the Christmas period.
The purchase by Kleeneze has now opened
up new and exciting opportunities which
will deliver significant growth and cost
savings in the current year.” 12 | Kleeneze Annual Report 2005
Kitbag
Kitbag is the leading internet sports and
leisure wear retailer. As well as selling all
major branded products and its own branded
product on its website www.kitbag.com,
Kitbag also runs online and catalogue
retailing for major football clubs.
Turnover for the one month post acquisition
was £0.5 million and there was a small
operating loss.
We acquired Kitbag on 1st April 2005. 
We have already made progress with the
integration of the back office services 
and the call centre is now being managed
and run by Kleeneze Europe. As well as
reducing costs this will also enhance
Kitbag’s offering as the Kleeneze Europe
service centre is open 24 hours a day,
seven days a week. This should increase
Kitbag’s sales both in the UK and, more
importantly, in the USA where we already
have a small presence.
We are working closely with our major
football club partners, Manchester United,
Chelsea and Barcelona, in preparation for
new kit launches later this year. We expect
to see the 2005/06 season kit launches
perform well. Chelsea have a new Home 
kit launch in their Centenary year as
Premiership champions, Barcelona have
new Home and Away shirts as La Liga
winners and Manchester United have 
a new Away shirt. Kitbag holds long term
contracts with all of its major football club
partners. We have recently entered into a
five-year contract with Celtic FC to provide
the official website store and all fulfilment
services. Kitbag produces catalogues as
well as a variety of other direct mail pieces
to support the online activity of each of the
clubs. A catalogue will shortly be produced
to support the Kitbag website.
We have also won an 18-month contract
with Nike to manage the e-commerce
activities on their football website,
www.nikefootball.com, across Europe. 
This contract takes us beyond the next
football World Cup, which will be held 
in Germany in the summer of 2006. 
The site went live in July 2005 and it 
has started well.
We have also established a series of
partnership programmes with leading
retailers including American Express Cards,
where we are the exclusive online sports
retailing partner, Lucozade and Gillette.
We have run several successful hours 
on eeZee tv selling a variety of football 
kits and memorabilia and are planning a
catalogue for the Kleeneze Europe network
in September this year.
As with IWOOT, high levels of service 
are very important to Kitbag and we 
also offer a guaranteed next day delivery
service for all products ordered before
3pm. We enhance the quality of the 
service by offering unique bespoke services
such as shirt naming and numbering and
embroidering of football boots.
Kitbag is a well-respected internet 
retailer operating in a growing part of 
the sports apparel market. The win of the
pan-European Nike football website gives 
us a presence in continental Europe which
opens up a new market. We will continue 
to bid for major football club contracts and
work with the leading brands to build the
business across Europe.
80%
Kitbag provides a next day delivery service 
to 80% of US zip codes
Chief Executive’s Review continued
Chris Gibson
Managing Director
Kitbag
“Joining the Kleeneze Group has enabled
Kitbag to accelerate brand awareness 
and sales, improve operational efficiencies
and reduce costs. In June 2005 we
launched the official Celtic FC Store
powered by Kitbag on an exclusive basis
followed by the Nike football website in 
July. Preparation for the World Cup 2006 
in Germany is already under way.” “My children were
really pleased 
with this season’s 
Chelsea kit which 
I purchased for 
them online.” 
Louise Jacobs
Customer, Kitbag
Product sourcing:
Location
The football clubs operated 
by Kitbag have contracts with
our key suppliers – Nike and
Umbro – for product. Kitbag
also has relationships with
Puma, Adidas and Reebok.
Sales channel:
Online
Kitbag hosts the websites for
Chelsea, Manchester United,
Barcelona and, most recently,
Celtic. The websites are
supported by direct mailings
including a catalogue.
Ordering:
Website
Customers are able to order
via the internet or through our
24-hour customer order line
which has recently transferred
to Bristol.
Fulfilment:
Distribution Centre
All orders for both Kitbag and
the football clubs are fulfilled
from the distribution centre 
in Ilkeston, Derby.
Following day delivery:
Courier
Orders received before 3pm
are guaranteed for next day
delivery using either Amtrak,
the Royal Mail or DHL for
overseas deliveries. “I can shop from the
comfort of my own
home for a great range
of products which are
always delivered to me
the very next day.”
Jean Dunn
Customer, eeZee tv
Product sourcing:
Location
Bulk product is bought from 
the Far East to enable the 
most competitive pricing in the
industry. Local sourcing is also
utilised to ensure continuation 
of supply, variety of product and
a ready supply of branded goods.
Sales channel:
Television
eeZee tv sells top quality
discounted products 
live on Sky Channel 659
broadcasting 14 hours a day.
The channel is also streamed
live on the internet via
www.eezeetv.com.
Ordering:
Telephone
The call centre is managed 
in-house by our experienced
team in Bristol. Customers
can also order through our
website with the same high
level of service.
Fulfilment:
Distribution Centre
eeZee tv is the only shopping
channel in the UK to offer
guaranteed next day delivery
on all products. Fulfilment is
through our distribution centre
in Bristol. 
Following day delivery:
Courier
eeZee tv has benefited 
from the Group contract with
Amtrak for the provision of 
a next day delivery service. Kleeneze Annual Report 2005 | 15
Television Shopping
eeZee tv
eeZee tv is a joint venture broadcasting live
for 14 hours per day on the Sky platform
channel 659 as well as streamed live over
the internet on www.eezeetv.com. eeZee tv
sells a wide range of products across six
major product ranges at a discount to High
Street prices.
In the seven months since we launched 
the joint venture our share of turnover was
£0.3 million and our share of the operating
losses was £0.8 million. Additionally we
have incurred £0.3 million of start-up costs.
We founded the 50/50 joint venture 
with John Mills Limited (“JML”) on 
29th September 2004 and started 
live broadcasting on 1st March 2005. 
We formed the joint venture with JML 
to combine their product sourcing and
broadcasting expertise with our operational
expertise and all of the products are
dispatched from Kleeneze Europe’s
distribution centre.
eeZee tv should become a new part of our
product sourcing over the next few years
as we will be using television to test new
products for our catalogues. A product that
sells well on television will be migrated 
into our Kleeneze Europe catalogues. 
We are also selling other Group products
on television.
We are using JML’s position as an
advertiser on terrestrial and satellite
television to promote eeZee tv. JML also
has over 4,000 video promotion units 
in major retailers across the UK, such as
B&Q, Woolworths and Boots and we are
using this presence to promote eeZee tv 
as well as promoting it in our Kleeneze
Europe catalogues. These cross promotions
should drive viewers to our station in 
a targeted and cost-effective manner. 
On 1st July 2005 we launched a new
series of daily specials, the “Big eeZee”
and we are continuing this initiative across
the summer into the Christmas period.
We broadcast our programmes
simultaneously on our website, eezeetv.com,
which already accounts for some 15% of our
turnover with a conversion rate of over 5%. 
We have launched a “Kleeneze show” 
on eeZee tv at 8am on Saturday mornings
with shows repeated at 8am on Wednesday
mornings. This is designed to enhance the
profile and reputation of Kleeneze Europe
and bring it to the attention of a wider
audience. We are planning to broadcast
these shows throughout the year.
eeZee tv provides us with an opportunity 
to develop a presence in television shopping
and extend our product development 
and sourcing.
William Rollason
Chief Executive
10th August 2005
22%
an average discount from the High Street 
of 22%
Chief Executive’s Review continued
Pete Mills
Managing Director
eeZee TV
“eeZee tv successfully launched in March
2005 broadcasting 14 hours of live TV
shopping from our London studios every 
day. We are the only channel in the UK to
guarantee next day delivery on all products,
which puts our customer service proposition
leagues ahead of the competition.” 16 | Kleeneze Annual Report 2005
Summary of results 
Turnover from continuing operations for the year increased by 10.7% to £175.9 million (2004: £158.9 million) including £5.3 million from
acquisitions made during the year. Excluding acquisitions, turnover was up by 7.3%.
Operating profit from existing operations before goodwill amortisation and exceptional items was £7.7 million (2004: £7.9 million) excluding
losses of £0.3 million from acquisitions during the year. Statutory operating profit was £4.9 million (2004: £3.2 million). The overall margin 
on existing operations fell to 4.5% (2004: 5.0%), due to disappointing results at Farepak; Kleeneze Europe’s margin, however, increased to
8.3% (2004: 8.0%), reflecting the first full year of the efficiency benefits arising from the new fulfilment centre.
Share of joint venture
Our share of the new joint venture Television Shopping business, eeZee tv, recorded losses of £0.8 million (2004: £nil) during the seven
months’ trading from commencement on 1st October 2004.
Share of associate
Operating profits from Home Farm Hampers Limited (“Home Farm”) were £0.5 million (2004: £0.6 million).
Interest
The total net interest charge was £0.1 million (2004: £0.3 million). Net interest payable of £0.3 million has fallen from last year’s £0.6 million
charge. The major outflows on acquisitions occurred during the second half, particularly with the purchase of Kitbag on 1st April 2005.
Additionally, there is a charge of £0.2 million relating to the unwind of the discount on the base and contingent deferred consideration
arising on the IWOOT acquisition, details of which are given in note 6. Interest income from Home Farm was £0.3 million 
(2004: £0.3 million).
Exceptional items
2005 2004
£m £m
Operating exceptional items
Closure of production at Farepak (0.5) –
Abortive acquisition costs (0.3) –
Start-up costs in the Netherlands (0.5) –
eeZee tv start-up costs (0.3) –
Management re-structure at Kleeneze Europe (0.3) –
Change in VAT legislation (0.2) –
Costs on termination – (0.9)
Transfer of operations in Kleeneze Europe – (1.1)
(2.1) (2.0)
Non-operating exceptional items
Profit on disposal of fixed assets 0.5 1.2
Profit/(loss) on disposal and closure of discontinued operations 0.9 (6.8)
1.4 (5.6)
Operating exceptional items
• The closure of Farepak’s hamper production facility in Swindon resulted in an exceptional charge of £0.5 million during the year in respect 
of redundancies and related costs.
• During the year, the Group reviewed a number of potential acquisitions and £0.3 million of costs were incurred in business reviews that were 
not pursued.
• Kleeneze Europe incurred £0.5 million in start-up costs relating to the entry into the Netherlands. 
• Start-up costs relating to the setup of eeZee tv including fulfilment and Service Centre operations were £0.3 million.
• £0.3 million costs were incurred by Kleeneze Europe in respect of a management restructuring programme.
• £0.2 million costs were expensed as a result of an anticipated change in VAT legislation.
Non-operating exceptional items
During the year, Farepak disposed of freehold premises for cash proceeds of £2.1 million. The net book value of the fixed assets disposed 
was £1.5 million and the costs of disposal were £0.1 million, giving a profit on disposal of £0.5 million.
The disposal of 190,763 Ordinary shares in Premier Direct Group plc realised £1.2 million and gave rise to a profit of £0.9 million. 
Tax
An analysis of the taxation charge is set out in note 9. The total taxation charge as a percentage of the profit before tax was 17.4%. 
The tax charge on continuing operations before exceptional items represents 30.6% of the profit before tax.
£1.1 million was credited to the profit and loss account in respect of the tax on exceptional items, over provisions in previous years and deferred
tax released upon the sale of the freehold property.
Earnings per share
Basic earnings per share were significantly improved to 10.21 pence per share (2004: loss of 5.76 pence).
Normalised basic earnings per share reduced by 20.9% to 10.17 pence (2004: 12.85 pence).
Finance Review
For the year ended 28th April 2005 Kleeneze Annual Report 2005 | 17
Dividends
The Group declared an interim dividend of 1.07 pence per Ordinary share in December 2004 (2004: 1.0 pence); a final dividend of 2.23 pence
per Ordinary share is proposed (2004: 2.0 pence) and is subject to approval by shareholders at the AGM on 28th September 2005.
Cash and borrowings
The Group generated cash from continuing operations of £3.2 million (2004: £6.2 million), after the cash flow relating to exceptional costs.
Following expenditure of £13.1 million on acquisitions during the year, including the Group’s investment in eeZee tv, the Group had a cash
outflow before financing of £9.3 million (2004: inflow £4.8 million). Net debt at 28th April 2005 rose to £27.0 million (2004: £11.2 million)
including £5.7 million of discounted loan notes issued to the vendors of IWOOT.
The Group’s committed borrowing facilities of £40 million expire on 31st October 2006 and are more than sufficient to provide for its financial
requirements for the foreseeable future. At 28th April 2005, the overdraft with Bank of Scotland, drawn under these facilities, was £21.2 million
(2004: £11.6 million).
Bank of Scotland has rights to offset cash balances against overdrafts with Group companies.
Shareholders’ funds
The shareholders’ funds deficit at 28th April 2005 is £7.5 million (2004: £12.8 million deficit). 
Derivatives and other financial instruments
The Group’s principal financial instruments, other than derivatives, comprise Preference Shares, bank overdrafts, loan notes, loans and cash.
There are also various other operating financial instruments, such as trade debtors and trade creditors.
The Group enters into derivative transactions (forward currency contracts) in order to manage the currency risks that arise from trading. 
The Group does not trade in financial instruments.
Interest rate risk
Interest income is earned at variable interest rates on cash deposits, on balances due from Kleeneze Europe distributors and on loans
advanced to eeZee tv.
Interest is payable on the Group’s borrowings at a variable rate based on Bank of Scotland’s base rate. Loan notes of £0.3 million issued
by the Company bear interest at a floating rate based on LIBOR and the balance of £6.0 million (£5.7 million net of discount) issued by a
subsidiary company are non-interest bearing. No interest accrues on the contingent deferred consideration of £4.65 million (£4.23 million net
of discount) relating to the acquisition of IWOOT.
Foreign currency risk
Kleeneze Europe purchases around 50% of of its product range from overseas suppliers who usually invoice in either US Dollars or Hong Kong
Dollars. Forward currency contracts are negotiated in order to limit currency exposure and the effect of these contracts at 28th April 2005 is
given in note 26.
All of the Group’s principal businesses trade in the United Kingdom. Turnover generated by Kleeneze Ireland, which supplies distributors based
in the Republic of Ireland, and by Kleeneze Europe in the Netherlands is denominated in Euros; however, the majority of operating costs are
denominated in Sterling. Some exchange differences arise on currency balances held in Euros from time to time.
International Financial Reporting Standards (“IFRS”)
IFRS will apply for the Group’s financial year ending April 2006. The interim results for the six months ending 31st October 2005 will 
be prepared in accordance with the new accounting standards.
An impact analysis has been completed and the most significant areas for the Group are currently expected to include:
• The cessation of goodwill amortisation, which will become subject to an annual test for impairment
• The recognition of intangibles arising on acquisitions and the amortisation of those assets
• The introduction of a charge in respect of the grant of share options
• The introduction of pension accounting rules which require a defined benefit pension scheme surplus or deficit to be reflected in the 
balance sheet
• The non-provision for dividends until declared.
The Group’s review of the impact of the change to IFRS is ongoing as standards and associated interpretations continue to be refined and
developed and practical application continues to evolve.
C J S Hulland
Finance Director
10th August 2005 18 | Kleeneze Annual Report 2005
Corporate Social Responsibility Report
We are a people business. We touch the lives
of millions of people – not just our customers
and employees, but also our distributors,
agents, shareholders, suppliers and the
local communities in which we operate. As
stakeholders in our business, they expect 
us to operate our business in an ethical 
and socially responsible manner.  
Environment
Our Environmental Policy crystallises our
commitment to maintaining and promoting
sound environmental practices. We intend to:
• Comply with, and where possible perform
better than, all relevant environmental laws
and regulations. 
• Consider the environment in all strategic
business decisions. 
• Establish key environmental objectives that
will allow us to minimise our impact on the
environment. 
• Set targets to meet our key environmental
objectives and measure our performance
against these targets year on year. 
• Report to our stakeholders on our
environmental performance.
Following the acquisitions of IWOOT, Kitbag
and eeZee tv, we are reviewing the measures
by which we monitor our performance in line
with our objectives.
During the year Kleeneze Europe implemented
a recycling programme for the 1.25 tonnes 
of cardboard waste that is generated on a
daily basis. This waste is now being shredded
and used as packing material replacing the
non-biodegradable infill which was previously
used to pack parcels for distribution.
People
The key differentiator in our business is 
our people. We, therefore, seek to create 
a positive working environment that allows
them to grow and develop as individuals.
Training is an important part of this
development and we encourage employees 
to take advantage of internal and external
training opportunities. As part of this process,
our appraisal programme identifies staff
training requirements and provides them 
with appropriate training to further their
development. During 2004 we commenced a
management training programme designed to
realise the potential of our management team. 
Whilst we operate our businesses in a manner
designed to harness the synergies between
them, we seek to maintain the distinctive
internal culture that characterises each of our
businesses, because we want our people to
work and take part in a business they believe
in – this is an important part of what gives
each business its competitive edge. 
Community
• Our relationship with the community remains
important to the Group. Kleeneze Europe’s
support for the National Neighbourhood
Watch Association (“NNWA”) has continued
in the current year.
• Macmillan Cancer Relief remains the
principal charity for Farepak and Kleeneze
Europe who together with significant staff
contributions have raised £7,000 this year.
At the beginning of 2005 distributors and
staff responded generously to the Tsunami
earthquake appeal raising donations which
were matched by a Group contribution
making a total contribution of £30,000.
Farepak also donated packaging and
surplus food products.
• Kitbag worked with Sport Relief, a charity
which supports projects that use sport
and exercise to strengthen communities
and provide opportunities for people who 
are excluded or disadvantaged.
Industry involvement
As founder members of both the Direct
Selling Association (“DSA”) and the Hamper
Industry Trade Association, we believe
strongly in protecting the rights of our
customers and encouraging other businesses
in our industry to adopt similarly high
standards of corporate practice. This past
year, we have worked closely with the DSA
and the Office of Fair Trading (“OFT”) to
achieve the OFT’s official endorsement 
of the Consumer Code of Practice by which
we abide.
As an evolving medium, the internet has had
to work hard to gain the trust of consumers
as a secure environment in which they can
trade. Our two internet businesses, IWOOT
and Kitbag, adhere to the highest principles
set out by the internet retailing industry.
IWOOT is accredited by the Safebuy Assurance
Scheme, TrustUK and ISIS.
Ethical trading
We endeavour to apply the principles of 
fair and ethical trading in all our business
areas. An ethical trading policy has been
incorporated into our standard terms and
conditions for suppliers and we have made
good progress in signing up our suppliers 
to ensure that they abide by this policy. 
Nicholas Gilodi-Johnson
Director
10th August 2005
Above from top Kleeneze Europe has 
replaced the packaging materials previously
used for delivery of goods to distributors 
to opt for shredded recycled cardboard. 
In January 2005, Farepak provided food 
and packaging to victims of the Tsunami
earthquake and Megan Chaplin carries 
a box of aid. Kleeneze Annual Report 2005 | 19
Directors
01 02
03 04
05 06
07
01 Sir Clive Thompson (62) 
Chairman 
Appointed to the Board in 1988 and 
Chairman in August 2001. Deputy Chairman
of Strategic Equity Capital plc. Member of 
the advisory boards of CVC Capital Partners
and SVG Strategic Recovery Fund. Retired 
as Chairman of Rentokil Initial plc in 2004
where he was Chief Executive for 20 years.
Past President of the Confederation of British
Industry (CBI). Former director of Sainsbury plc,
Wellcome PLC, BAT Industries PLC, Seeboard plc
and Caradon PLC. Former Deputy Chairman 
of the Financial Reporting Council and member
of the Committee on Corporate Governance. 
02 William Rollason (44) 
Chief Executive
Appointed in January 2003. He is also 
a non-executive director of Jessops plc.
Previously Group Finance Director of National
Express Group plc and prior to that a director
at Carlton Communications plc. He qualified
as a Chartered Accountant with KPMG in 1986.
03 Chris Hulland (53) 
Finance Director and Company Secretary
Appointed to the Board in July 1988, having
previously been Finance Director of H P Bulmer
(Overseas Holdings) Limited since 1985. 
He previously held positions with Newey 
& Eyre International Limited and GKN PLC. 
He qualified as a Chartered Accountant in
1976 with PricewaterhouseCoopers in London.
04 Nicholas Gilodi-Johnson (34) 
Executive Director
Appointed to the Board in September 2001,
Nicholas Gilodi-Johnson was appointed
Managing Director of Farepak Food and 
Gifts Ltd in February 2005. He was previously
Corporate Strategy Manager with United Pan
Europe Communications NV and, prior to that,
was with News International PLC. 
05 Paul Munn (42) 
Senior Independent Non-executive Director
Appointed in November 2002, Paul Munn 
is a director of Rockworth Management
Partners Limited and prior to that was 
Chief Executive of Dawson International PLC.
He is a Member of the Chartered Institute 
of Management Accountants and he has
previous experience with Mars Confectionery,
PricewaterhouseCoopers and BUPA.
06 Neil Gillis (40) 
Independent Non-executive Director
Appointed in August 2003, Neil Gillis 
is Chief Executive of health club group,
Esporta. Neil has previously worked at
Greene King PLC and Heinz. 
07 Stephen Roberts (64) 
Non-executive Director 
Appointed in 1985. He is a consultant to
Kirkpatrick & Lockhart Nicholson Graham LLP .  20 | Kleeneze Annual Report 2005
Information not subject to audit
The Board has delegated responsibility for establishing remuneration policy during the year and the remuneration of the Chairman and the
executive directors to the Remuneration Committee. The members of the Remuneration Committee during the year were:
Neil Gillis (appointed Chairman on 27th October 2004)
Paul Munn 
Sir Clive Thompson (resigned 27th October 2004)
Stephen Roberts (resigned 27th October 2004)
The Board is responsible for confirming fees payable to the non-executive directors which are recommended by the Non-Executive Directors’
Fees Committee which consists of:
Sir Clive Thompson (Chairman)
William Rollason
Chris Hulland
The Remuneration Committee and the Non-Executive Directors’ Fees Committee have used the Committee members’ wide knowledge of
current good practice relating to directors’ remuneration.
Remuneration policy
In framing its policy, the Remuneration Committee has given full consideration to the Combined Code. The remuneration policy is designed,
by reference to listed public companies of similar size and financial record, to attract, retain and motivate the executive directors. The policy is
intended to provide both a fixed salary and short term and long term benefits through inclusion of performance-related bonuses and share options.
The policy in relation to subsequent years will be kept under review to ensure that it reflects changing circumstances. In addition the Committee
reviews the salaries of senior management. The remuneration policy remains unchanged for the financial year ending 30th April 2006 but
performance criteria are designed to be flexible and allow for specific targets to be set in the light of new developments. 
Emoluments consist of annual salary, fees, pension and other non-cash benefits, which include health insurance and car benefits. 
Fees and salaries are reviewed annually. The level of fees and remuneration for the Chairman and for each director is designed to provide 
a competitive remuneration package to attract and retain quality individuals.
The Remuneration Committee is sensitive to the wider scene, including pay and conditions throughout the Group, especially when determining
annual salary increases.
There are no bonuses payable in respect of the financial year ended 28th April 2005. Bonuses relating to the year ended 30th April 2004 were
paid to William Rollason (£75,000), Chris Hulland (£20,000) and Nicholas Gilodi-Johnson (£7,500).
For the financial year ending 30th April 2006 bonus arrangements in respect of William Rollason and Chris Hulland are dependent upon growth
in normalised earnings per share. The maximum bonuses are 75% for William Rollason and 40% for Chris Hulland. Nicholas Gilodi-Johnson has
a maximum bonus of 30% of salary which is dependent upon profit targets related to the performance of Farepak.
Bonus payments do not form part of pensionable emoluments.
Other benefits
William Rollason, Chris Hulland and Nicholas Gilodi-Johnson are entitled to death in service benefit of four times salary and to permanent
health insurance cover which applies after 6 months’ continuous absence due to illness.
Directors’ Remuneration Report
For the year ended 28th April 2005 Kleeneze Annual Report 2005 | 21
Service contracts
The executive directors have service contracts with the Company. These are rolling contracts which continue unless terminated in accordance
with the terms of the contract. These agreements are summarised as follows:
Compensation on 
termination by the Company 
Name Date of agreement Notice periods without notice or cause
William Rollason 8th January 2003 6 months from the director; 150% of basic annual salary
12 months from the Company at the date of termination
Chris Hulland 13th November 2002 6 months from the director; 150% of basic annual salary
12 months from the Company at the date of termination
Nicholas Gilodi-Johnson 24th February 2005 6 months from the director; 6 months’ salary at date
6 months from the Company of termination
Sir Clive Thompson has a rolling service agreement, dated 5th April 2003, which provides for a notice period of 12 months from either 
Sir Clive Thompson or the Company.
The terms of the directors’ service contracts have been set to reflect market practice and provide contractual protection for the directors 
that is fair and in the interests of shareholders. Compensation payments on termination of directors’ contracts will only be made where the
circumstances surrounding the departure of the relevant director justify such payments. Compensation will not apply where the director’s
departure is due to poor performance.
Neil Gillis and Paul Munn have letters of appointment dated 8th August 2003 and 26th September 2002, respectively, which do not allow 
for any notice period. Stephen Roberts does not have a letter of appointment. 
There are no pre-determined special provisions for the Chairman and non-executive directors with regard to compensation in the event of loss
of office.
All non-executive directors are subject to triennial re-election at the AGM. The Nomination Committee considers nominations in respect 
of Board appointments.
Share options
Share options granted to directors and the performance criteria for options that have been granted to directors are set out later in this report.
It is the Board’s intention that share options, other than those issued in relation to the Savings Related Share Option Scheme, will be issued
subject to performance criteria. 
The Remuneration Committee has concluded that share price improvement should be a priority for the Chief Executive and his remuneration
package has been appropriately structured. The Committee considers that a continuing improvement in the share price is important to all
shareholders and is one of the best measures to assess the performance of the Chief Executive.
Total shareholder return
The following graph shows the Company’s performance between 1st May 2000 and 28th April 2005, measured by total shareholder return,
assuming that dividends are re-invested on the ex-dividend date, compared with the performance of the FTSE Small Cap index, also measured
by total shareholder return. The FTSE Small Cap Index has been selected for this comparison as the directors believe that this is the most
appropriate benchmark.
140
120
100
80
60
40
20
0
2000 2001 2002 2003 2004 2005
Total Shareholder Return
----- Kleeneze plc
----- FTSE Small Cap Index 22 | Kleeneze Annual Report 2005
Information subject to audit
Directors’ remuneration
Remuneration, excluding pension contributions, paid to each director was:
Benefits- 2005 2004
Fees Salary in-kind Total Total
£’000 £’000 £’000 £’000 £’000
Sir Clive Thompson* 100 – – 100 100
William Rollason – 275 15 290 376
George Pollock (resigned 17th December 2003) –––– 680†
Chris Hulland – 186 26 212 232
Nicholas Gilodi-Johnson –62 6 68 73
Neil Gillis 20–– 20 14
Paul Munn 20–– 20 20
Stephen Roberts 20–– 20 20
160 523 47 730 1,515
* Director’s fees were paid to Storm Financial Ltd, a company of which Sir Clive Thompson is a director and a shareholder.
† Includes £493,000 paid in respect of compensation for loss of office.
Benefits-in-kind include health insurance and car benefits.
Pensions
William Rollason and Chris Hulland are entitled to pension contributions of 25% of salary to be paid into a personal pension scheme of their
choice. Chris Hulland was a member of the Group’s Defined Benefit Pension Scheme until 1st November 2003 when his membership ceased.
Nicholas Gilodi-Johnson is entitled to a pension contribution of 10% of salary paid into the Kleeneze plc Group Personal Pension Scheme.
Contributions made during the financial year were:
2005 2004
£ £
William Rollason 49,844 14,000
Chris Hulland 69,750 13,950
Nicholas Gilodi-Johnson 3,125 1,155
George Pollock – 25,000
122,719 54,105
The value of pension contributions unpaid as at 28th April 2005, all of which related to William Rollason, was £95,604. At 30th April 2004 the
value of contributions unpaid was £92,000 of which £68,750 related to William Rollason and £23,250 related to Chris Hulland. These sums
have been provided for in the financial statements.
Pension details in respect of the Defined Benefit Pension Scheme for Chris Hulland are:
Increase Transfer
before value of 
Accumulated Accumulated Increase in inflation in increase,
accrued accrued accrued accrued before 
benefits benefits benefits benefits inflation less 
at 28th April at 30th April during during directors’ 
2005 2004 the year the year contributions
£ ££££
Chris Hulland 48,757 47,275 – 1,482 12,389
The transfer value of accrued benefits for Chris Hulland at the end of the financial year is as follows:
Movement,
less
At 28th April At 30th April directors’
2005 2004 contributions
£’000 £’000 £’000
Chris Hulland 452 286 166
The transfer value represents a liability of the Farepak Limited Pension & Life Assurance Scheme (1984), not a sum paid or due to Chris Hulland.
Directors’ Remuneration Report continued Kleeneze Annual Report 2005 | 23
Share option schemes
Options held by directors during the year are shown below:
Exercise At 28th At 30th
price April 2005 April 2004
Date of grant Exercise dates £ Number Number
William Rollason
(2)
09.01.2003 09.01.2006 to 08.01.2013 0.6150 845,528 845,528
(3)
09.01.2003 09.01.2006 to 08.01.2013 0.6150 48,780 48,780
(2)
17.12.2003 17.12.2006 to 16.12.2013 1.4500 379,310 379,310
(2)
15.12.2004 15.12.2007 to 14.12.2014 1.2850 428,015 –
1,701,633 1,273,618
Chris Hulland
(1)
20.01.1997 20.01.2002 to 19.01.2007 1.9625 16,738 16,738
(2)
20.01.1997 20.01.2000 to 19.01.2007 1.9625 191,198 191,198
(1)
28.09.1999 28.09.2002 to 27.09.2009 2.8750 83,652 83,652
(3)
04.10.1999 04.10.2002 to 03.10.2009 2.8750 10,434 10,434
(1)
31.10.2000 31.10.2003 to 30.10.2010 1.8800 127,559 127,559
(1)
27.09.2001 27.09.2004 to 26.09.2011 1.7750 74,472 74,472
(1)
27.09.2002 27.09.2005 to 26.09.2012 1.1000 148,710 148,710
652,763 652,763
Nicholas Gilodi-Johnson
(1)
27.09.2002 27.09.2005 to 26.09.2012 1.1000 11,993 11,993
The Company operates share option schemes for executive directors and other senior management. Options are normally exercisable between
three and ten years after the date of grant. There are a limited set of circumstances such as leaving employment due to injury, disability or
redundancy, when performance conditions (if applicable) may not apply.
Share options awarded by the Remuneration Committee may be conditional on the Company’s future performance.
(1)
Options issued under the Kleeneze 1996 Discretionary Share Option Scheme, exercisable in the event that the increase in earnings per share
during the period from the date of grant of options to the date of exercise exceeds the increase in the Retail Price Index plus 3% per annum.
(2)
Options issued under the Kleeneze 1996 Discretionary Share Option Scheme.
(3)
Options issued under the Kleeneze plc Executive Share Option Scheme.
Share options granted to William Rollason under the Kleeneze 1996 Discretionary Share Option Scheme and the Kleeneze plc Executive Share
Option Scheme are subject to performance criteria. The options, which were granted at an exercise price equal to the market price on the date
of the grant, may only be exercised in full if the share price at the time of exercise exceeds the target price (as set out below). If the share
price equals the lower target price, 25% of the options may be exercised with a proportional increase in the percentage exercisable above the
lower target price. 
Lower 
Date granted Target price target price
9th January 2003 200p 100p
17th December 2003 250p 150p
15th December 2004 275p 175p
During the year, no share options were exercised by the directors and 821,258 options held by George Pollock lapsed. 
The highest mid-market price of the Ordinary shares during the year was 199 pence, the lowest price was 100 pence and the price at 
28th April 2005 was 125 pence.
This report was approved by the Board on 10th August 2005 and signed on its behalf by 
Neil Gillis
Chairman – Remuneration Committee 24 | Kleeneze Annual Report 2005
The directors submit their report together with the audited financial statements for the year ended 28th April 2005.
Trading results and dividends
The profit on ordinary activities before taxation was £5.9 million (2004: £2.0 million loss). 
The directors recommend payment of a final dividend of 2.23 pence per Ordinary share (2004: 2.0 pence), which together with the interim
dividend of 1.07 pence per Ordinary share (2004: 1.0 pence) will result in a total dividend of 3.30 pence per Ordinary share for the year as 
a whole (2004: 3.0 pence).
Principal activities, trading review and future developments
A review of the development and activities of the Group is contained within the Chairman’s Statement, the Chief Executive’s Review and the
Finance Review. 
Directors
The directors of the Company are set out in the Remuneration Report. Nicholas Gilodi-Johnson retires by rotation and, being eligible,
is recommended for re-election at the AGM. Stephen Roberts will retire from the Board at the conclusion of the AGM. Michael Johns is
recommended by the Board for election as a non-executive director at the AGM.
Directors’ interests
The interests of the directors in the Ordinary 5p shares of the Company were:
At 28th April 2005 At 30th April 2004 
Non-beneficial Beneficial Non-beneficial Beneficial
Number Number Number Number
Sir Clive Thompson – 1,068,421 – 1,068,421
William Rollason –– ––
Chris Hulland – 858,396 – 858,396
Nicholas Gilodi-Johnson 11,656,880 13,584,580 11,656,880 13,584,580
Neil Gillis –– ––
Paul Munn –– ––
Stephen Roberts 11,852,000 164,475 11,852,000 164,475
There have been no changes in directors’ shareholdings between the end of the financial year and 10th August 2005, with the exception of
William Rollason who purchased 20,000 shares on 8th August 2005.
Share options granted to directors are shown in the Directors’ Remuneration Report.
Substantial shareholdings
At 13th July 2005 the following substantial shareholdings, in addition to those noted above under Directors’ interests had been notified to the
Company. In some cases there is duplication with the Directors’ interests notified above, and reference should be made to the notes below:
Percentage
Ordinary interest
shares %
B B Gilodi-Johnson, Nicholas Gilodi-Johnson and E G Mellor
(1)
11,656,880 24.2
R A J Trust Company Limited, P E O’Connor, P S O Roberts, S M Gray
(2)
7,852,000 16.3
CTX Treuhand AG, T Wilhelm, M Horning and Saggart Investments Company
(3)
5,554,300 11.5
B B Gilodi-Johnson and P S O Roberts
(4)
4,000,000 8.3
C M L Johnson 3,821,720 7.9
UBS Global Asset Management Life Limited 3,578,700 7.4
B B Gilodi-Johnson 2,000,000 4.1
(1)
This holding is shown above under Directors’ interests within the non-beneficial interests of Nicholas Gilodi-Johnson.
(2)
This holding is shown above under Directors’ interests within the beneficial interests of Nicholas Gilodi-Johnson and within the non-beneficial
interests of Stephen Roberts.
(3)
The beneficial interest of Nicholas Gilodi-Johnson in 3,332,580 Ordinary shares is shown above under Directors’ interests. C M L Johnson
has notified an interest in the remaining 2,221,720 Ordinary shares.
(4)
The beneficial interest of Nicholas Gilodi-Johnson in 2,400,000 Ordinary shares is shown above under Directors’ interests. C M L Johnson
has notified an interest in the remaining 1,600,000 shares. This holding is also shown under Directors’ interests within the non-beneficial
interests of Stephen Roberts.
Report of the Directors
For the year ended 28th April 2005 Kleeneze Annual Report 2005 | 25
Going concern
After making suitable enquiries, the directors believe that the Group has adequate resources to continue in operational existence for the
foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the accounts.
Charitable donations
During the year, the Group made charitable donations of £26,000 (2004: £4,000) to Macmillan Cancer Relief and the Tsunami earthquake appeal.
Employees
The Group gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately
fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the Group’s policy wherever practicable to
provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled
employees wherever appropriate. It is the policy of the Company to provide employment equality to all employees irrespective of race, ethnic
origin, nationality, gender, marital or family status, religious belief, political opinion or sexual orientation. The Group keeps employees
informed of matters which affect them.
Allotment of equity securities
A resolution will be proposed at the AGM to replace the existing authority of the directors to exercise the powers of the Company to allot
relevant securities with authority to do the same for a period of one year and to extend for a further year the authority of the directors 
to allot equity securities for cash other than strictly in accordance with the statutory pre-emption provisions.
Supplier payment policy
The Company agrees terms of payment with suppliers prior to the supply of goods or services. The Company’s policy is to observe all
contracted commitments including terms of payment. At 28th April 2005, the Company did not have any trade creditors (2004: nil).
Auditors
A Resolution to re-appoint Ernst & Young LLP as the Company’s auditor will be put to the shareholders at the forthcoming AGM.
Articles of Association
The directors propose to amend the borrowing limit of the Company in Article 162 of the Articles of Association by redefining the time period
which forms the basis of calculation for the borrowing limit.
The directors also propose to amend Article 159 by increasing the £250,000 cap on directors’ fees to £350,000.
The directors propose these amendments on the following terms:
“To resolve as a Special Resolution that the Articles of Association of the Company be and are hereby amended, as follows:
(a) in Article 162, by deleting the words “30th April 2003” and in their place inserting the words “28th April 2005”;
(b) in Article 159, by deleting the words “not exceeding £250,000” and in their place inserting the words “not exceeding £350,000”.”
Change of name
Following the acquisitions of IWOOT and Kitbag and the launch of the eeZee tv shopping joint venture, the Board has concluded that the name 
of the Company should be changed to “European Home Retail plc” and a Special Resolution authorising the change of name will be put to
shareholders for approval at the AGM.
Purchase of Preference Shares
A Resolution will be put to shareholders at the AGM authorising the terms and conditions of the letter agreement under which the Company will
agree to purchase the outstanding Preference Shares at their par value of £1.00 per share.
AGM
The Company’s AGM will be held on 28th September 2005 at The City Presentation Centre, 4 Chiswell Street, Finsbury Square, London EC1Y 4UP
commencing at 12.00 noon. 
By order of the Board
C J S Hulland
Secretary
10th August 2005 26 | Kleeneze Annual Report 2005
The Board has made significant progress in implementing the recommendations of the new Combined Code on Corporate Governance. 
The chairmen of the Audit, Remuneration and Nomination Committees will be available to answer questions at this year’s AGM to be held 
on 28th September 2005.
The Board
The Board of Kleeneze plc currently comprises the Chairman, three executive directors and three non-executive directors as follows:
Name Title
Sir Clive Thompson Chairman
William Rollason Chief Executive
Chris Hulland Finance Director and Company Secretary
Nicholas Gilodi-Johnson Executive Director
Paul Munn Senior Independent Non-executive Director
Neil Gillis Independent Non-executive Director
Stephen Roberts Non-executive Director
Biographies for all directors in office at 28th April 2005 are set out on page 19.
The Board has delegated certain matters to standing committees details of which are given below. Responsibility for the management of each
subsidiary rests with subsidiary Board directors, however the Board has adopted a formal schedule of matters specifically reserved for its
decision. These include the approval of Group budgets, forecasts, financial results, interim dividends, final dividend recommendation, major
capital expenditure proposals, acquisitions and disposals. Procedures have also been established to allow all members of the Board to make
contact with and discuss matters affecting the Group with its external auditors and its legal advisers.
The Board as a whole is responsible for the Group’s risk assessment and systems of internal control in order to safeguard shareholders’
investment and the assets of the Group.
Board evaluation 
The Board has instituted a formal procedure for the annual evaluation of Board members in their capacity as directors of the Company and 
as members of the committees of the Board. The results of this evaluation have been communicated with each director. The evaluation was
conducted on 31st March 2005.
Board meetings 
All directors have access to the Company Secretary’s advice and services. The Company Secretary is responsible for ensuring that Board
procedures are followed and that applicable rules and regulations are complied with. The Company Secretary also ensures that the directors
receive appropriate training as necessary.
During the year the Board met every month with the exception of August 2004. All directors attended every meeting during their term of office
with the exception of Stephen Roberts who did not attend the meeting held on 27th April 2005 as he was overseas. The Audit Committee met
on 1st July 2004 and 8th December 2004 and the Remuneration Committee on 26th May 2004 and 23rd February 2005. All committee
members attended every meeting during their term of office.
Board Committees
There are currently four sub-committees of the Board: the Audit Committee, the Remuneration Committee, the Nomination Committee and 
the Non-Executive Directors’ Fees Committee. The role and function of the committees is as follows:
Audit Committee
The Audit Committee comprises Paul Munn (Chairman) and Neil Gillis, and meets not less than twice annually. The executive and non-executive
directors also attend meetings by invitation. The Committee provides a forum for reporting by the Group’s external auditors. The Committee
also reviews the requirement for an internal audit function and has, so far, concluded that this is not necessary in view of the size and structure
of the Group.
The Audit Committee’s terms of reference include the approval of interim and final financial statements, review of accounting policies and the
monitoring of the Group’s internal controls. The Committee’s terms of reference also include keeping under review the scope and results of the
audit and its cost effectiveness, the auditors’ independence and objectivity and reviewing the nature and extent of non-audit services provided
by the auditors (seeking always to balance the maintenance of objectivity and value for money).
Remuneration Committee
The Directors’ Remuneration Report is set out on pages 20 to 23. It is the role of the Remuneration Committee to set the remuneration levels
and performance-related incentives for the executive directors and various senior managers in the Group and oversee the Group’s share option
schemes. The members of this Committee are Neil Gillis (Chairman) and Paul Munn.
Nomination Committee
This Committee is responsible for recommending Board appointments having regard to the balance and structure of the Board. Where appropriate
external search consultants are used to assist in this process. The members of this Committee are Sir Clive Thompson (Chairman), Neil Gillis and
Paul Munn. All directors are subject to re-election at least every three years.
Corporate Governance Statement
For the year ended 28th April 2005 Kleeneze Annual Report 2005 | 27 Kleeneze Annual Report 2005 | 27
Non-Executive Directors’ Fees Committee
The Committee is responsible for recommending the fees and other benefits of the non-executive directors, other than the Chairman. 
Its members are Sir Clive Thompson, William Rollason and Chris Hulland.
Communications with shareholders
Communications with shareholders are given high priority. The Finance Review on pages 16 and 17 includes a detailed review of the business
and future developments. There is regular dialogue with institutional shareholders including presentations after the Group’s preliminary
announcement of the year end results and at the half year.
The Board uses the AGM to communicate with private and institutional investors and welcomes their participation. Details of resolutions 
to be proposed at the AGM on 28th September 2005 can be found in the Notice of the Meeting on pages 59 and 60.
Internal control
The directors are responsible for the Group’s systems of internal control, which are designed to safeguard shareholders’ investment and the
assets of the Group. The Audit Committee reviews the effectiveness of the system of controls and reports its findings to the Board. These
control systems cover the safeguarding of assets, maintenance of proper accounting records and reliability of financial information used by 
the business. Such procedures can only be relied upon to manage, rather than eliminate, the risk of failure to achieve business objectives 
and provide reasonable, and not absolute, assurance against material errors, losses or frauds.
An ongoing process, in accordance with the guidance of the Turnbull Committee on internal control, has been established for identifying,
evaluating and managing the significant risks faced by the Group. The process has been in place for the full year under review and up 
to the date of approval of the Annual Report and Financial Statements.
The major aspects of the Group’s internal control systems are summarised below:
Control environment
The Group consists of four main operating subsidiaries, each with its own management and control procedures. The Chief Executive is actively
involved in the management of all Group businesses and the implementation of their internal controls. Meetings are regularly held with
operational management during which trading results are reviewed, business risks are assessed and procedures are set in place to minimise
or control those risks. Formal reviews are carried out monthly. 
Procedures exist to ensure the approval of significant financial commitments and expenses by appropriate executive personnel. 
Risk assessment
There is a re-assessment of business risks on an annual basis. This is carried out by the operational management and reviewed by 
the Board. The Audit Committee reviews the way in which the assessment has been carried out and reviewed in order to ensure that the
procedure will allow for the identification of all major risks. These reports cover the key risks which impact upon the trading performance 
of each business. Additional internal reports are prepared as required by the operational management and are reviewed by the executive
directors and senior executives. 
Management information
An annual budget is prepared by the operational management before the start of each financial year. This is reviewed by the Board to ensure
that it adheres to the Group’s overall strategy and that it is robust in its preparation. Detailed monthly accounts are compared against forecast
results with projections for the financial year being made quarterly or more frequently if necessary. Major variances from the forecast are
analysed promptly and remedial action taken where appropriate. 
Analyses of sales and cash movements are reviewed weekly by the executive directors.
Key performance indicators are produced monthly by each operating unit and are used to assess the achievement of business objectives.
Compliance with the Code of Best Practice
In the following respects the Company has not, throughout the whole of the financial year ended 28th April 2005, complied with Section 1 
of the Combined Code on Corporate Governance:
• There is no letter of appointment for Stephen Roberts in respect of his services as a director.
• As set out in the Directors’ Remuneration Report, the Remuneration Committee has used the committee members’ wide knowledge of
current good practice relating to directors’ remuneration. 
• Until 27th October 2004 the Audit and the Remuneration Committees were not wholly comprised of independent non-executive directors 
as Sir Clive Thompson and Stephen Roberts were members and, under the provisions of the Combined Code, are not considered to be
independent for the purposes of the Combined Code. With effect from 27th October 2004 the Committees became compliant upon the
resignation of Sir Clive Thompson and Stephen Roberts from membership.
• On 27th October 2004 the Company appointed Paul Munn as the senior independent non-executive director. The Company was not compliant
with this provision of the Code prior to this date. 28 | Kleeneze Annual Report 2005
Company law 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 of the Group at the end of that financial year 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 judgements and estimates that are reasonable and prudent; and
• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy, at any time, the financial position
of the Group and to enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for
safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of Directors’ Responsibilities
For the year ended 28th April 2005 Kleeneze Annual Report 2005 | 29
We have audited the Group’s financial statements for the year ended 28th April 2005 which comprise the Group profit and loss account, Group
balance sheet, Company balance sheet, Group cash flow statement, Group statement of total recognised gains and losses, reconciliation of
movement on shareholders’ funds and the related notes 1 to 30. These financial statements have been prepared on the basis of the accounting
policies set out therein. We have also audited the information in the Directors’ Remuneration Report that is described as having been audited.
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work
has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditors’ report
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company
and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors are responsible for preparing the Annual Report, including the financial statements which are required to be prepared in
accordance with applicable United Kingdom law and accounting standards as set out in the Statement of Directors’ Responsibilities in relation 
to the financial statements. The directors are also responsible for preparing the Directors’ Remuneration Report.
Our responsibility is to audit the financial statements and the part of the Directors’ Remuneration Report to be audited in accordance with
relevant legal and regulatory requirements, 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 Directors’ 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 Directors’ Report 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 Group is not disclosed.
We review whether the Corporate Governance Statement reflects the Company’s compliance with the nine provisions of the 2003 FRC
Combined Code specified for our review by the Listing Rules of the Financial Services Authority, and we report if it does not. We are not
required to consider whether the Board’s statements on internal control cover all risks and controls, or form an opinion on the effectiveness 
of the Group’s corporate governance procedures or its risk and control procedures.
We read other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. 
This other information comprises the Directors’ Report, the unaudited part of the Directors’ Remuneration Report, Chairman’s Statement,
Chief Executive’s Review, Finance Review and Corporate Governance Statement. 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 Directors’
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 Group’s circumstances, consistently
applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide 
us with sufficient evidence to give reasonable assurance that the financial statements and the part of the Directors’ Remuneration Report to be
audited are free from material 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 Directors’ 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 of the Group as at 28th April 2005 and of the
profit of the Group for the year then ended
• the financial statements and the part of the Directors’ Remuneration Report to be audited have been properly prepared in accordance with
the Companies Act 1985.
Ernst & Young LLP
Registered Auditor
London
10th August 2005
Independent Auditors’ Report to the Members of Kleeneze plc 30 | Kleeneze Annual Report 2005
2005 2004
Continuing Continuing Discontinued
operations operations operations
before before before 
goodwill Goodwill goodwill goodwill Goodwill 
amortisation amortisation amortisation amortisation amortisation
and and and and and
exceptional exceptional exceptional exceptional exceptional
items items Total items items items Total
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000
Turnover
Turnover including share of joint venture turnover 176,191 – 176,191 158,924 3,313 – 162,237
Less: share of joint venture turnover (317) – (317) ––––
175,874 – 175,874 158,924 3,313 – 162,237
Group turnover 
Existing operations 170,595 – 170,595 158,924 3,313 – 162,237
Acquisitions 5,279 – 5,279 ––––
2 175,874 – 175,874 158,924 3,313 – 162,237
Operating profit/(loss)
Existing operations 7,656 (2,160) 5,496 7,904 (2,581) (2,088) 3,235
Acquisitions (256) (341) (597) ––––
2 7,400 (2,501) 4,899 7,904 (2,581) (2,088) 3,235
Continuing operations 4,899 5,816
Discontinued operations – (2,581)
Share of loss of joint venture 3 (766) – (766) ––––
Share of profit of associate 3 467 – 467 659 –– 659
(299) – (299) 659 –– 659
Non-operating exceptional items
Profit on disposal of fixed assets (continuing) 4 – 522 522 –– 1,243 1,243
Profit/(loss) on disposal 
and closure of discontinued operations 4 – 884 884 –– (6,846) (6,846)
– 1,406 1,406 –– (5,603) (5,603)
Profit/(loss) before interest and tax 7,101 (1,095) 6,006 8,563 (2,581) (7,691) (1,709)
Net interest payable 5 (290) – (290) (593) –– (593)
Unwind of discount 6 (167) – (167) ––––
Share of interest of joint venture (25) – (25) ––––
Share of interest of associate 341 – 341 281 –– 281
(141) – (141) (312) –– (312)
Profit/(loss) on ordinary activities before tax 6,960 (1,095) 5,865 8,251 (2,581) (7,691) (2,021)
Tax on profit/(loss) on ordinary activities 9 (2,133) 1,113 (1,020) (2,182) 612 934 (636)
Profit/(loss) on ordinary activities after tax 4,827 18 4,845 6,069 (1,969) (6,757) (2,657)
Dividends (including non-equity dividends) 11 (1,623) – (1,623) (1,452) –– (1,452)
Retained profit/(loss) 3,204 18 3,222 4,617 (1,969) (6,757) (4,109)
Earnings/(loss) per Ordinary share – basic 12 10.21p (5.76)p
Earnings per Ordinary share – normalised basic 12 10.17p 12.85p
Earnings/(loss) per Ordinary share – diluted 12 10.11p (5.76)p
Earnings per Ordinary share – normalised diluted 12 10.07p 12.73p
Consolidated Profit and Loss Account 
For the year ended 28th April 2005 Kleeneze Annual Report 2005 | 31
2005 2004
Notes £’000 £’000 £’000 £’000
Fixed assets
Intangible assets 13 22,779 420
Tangible assets 14 12,110 12,042
Investment in joint venture:
Share of assets 2,124 –
Share of liabilities (1,665) –
Goodwill on investment 404 –
Loan 1,313 –
15 2,176 –
Investment in associate 15 395 411
Other fixed asset investments 15 – 334
Total investments 2,571 745
37,460 13,207
Current assets
Stocks 16 10,986 6,861
Debtors 17 9,087 11,087
Cash at bank and in hand 18 581 1,019
20,654 18,967
Creditors: amounts falling due within one year 19 (57,425) (44,280)
Net current liabilities (36,771) (25,313)
Total assets less current liabilities 689 (12,106)
Creditors: amounts falling due after more than one year 20 (3,698) (209)
Provision for liabilities and charges
Deferred consideration 21 (4,230) –
Deferred taxation 22 (272) (513)
(7,511) (12,828)
Capital and reserves
Called up share capital:
Ordinary 23 2,410 2,344
Preference 23 500 500
2,910 2,844
Share premium account 24 1,154 1,143
Revaluation reserve 24 411 411
Profit and loss account 24 (11,986) (17,226)
(7,511) (12,828)
Shareholders’ funds
Equity (8,011) (13,328)
Non-equity 500 500
(7,511) (12,828)
C J S Hulland W P Rollason
Director Director
Approved by the Board on 10th August 2005
Consolidated Balance Sheet
At 28th April 2005 32 | Kleeneze Annual Report 2005
2005 2004
Notes £’000 £’000 £’000 £’000
Fixed assets
Tangible assets 14 90 114
Investments in subsidiaries 15 13,142 3,306
Other fixed asset investments 15 – 334
13,232 3,754
Current assets
Debtors 17 21,546 11,969
Creditors: amounts falling due within one year 19 (25,987) (9,773)
Net current (liabilities)/assets (4,441) 2,196
Total assets less current liabilities 8,791 5,950
Capital and reserves
Called up share capital:
Ordinary 23 2,410 2,344
Preference 23 500 500
2,910 2,844
Share premium account 24 1,154 1,143
Merger reserve 24 2,031 –
Profit and loss account 24 2,696 1,963
8,791 5,950
Shareholders’ funds
Equity 8,291 5,450
Non-equity 500 500
8,791 5,950
C J S Hulland W P Rollason
Director Director
Approved by the Board on 10th August 2005
Company Balance Sheet
At 28th April 2005 Kleeneze Annual Report 2005 | 33
2005 2004
Notes £’000 £’000 £’000 £’000
Net cash inflow from operating activities 25(a) 2,931 4,166
Dividends received from associated company 1,266 318
Returns on investments and servicing of finance
Interest received 1,850 459
Interest paid (2,261) (925)
Preference dividends paid (34) (45)
Net cash outflow from returns on investments and servicing of finance (445) (511)
Taxation
UK corporation tax received 68 495
Capital expenditure and financial investment
Purchase of tangible assets (1,993) (3,799)
Proceeds from sale of tangible assets 2,150 3,723
Loans advanced to joint venture (1,313) –
Proceeds from sale of fixed asset investments 1,218 –
Net cash inflow/(outflow) from investing activities 62 (76)
Acquisitions and disposals
Net proceeds from sale of business – 1,167
Investment in joint venture (1,654) –
Purchase of subsidiary undertakings (8,190) (252)
Overdrafts acquired with subsidiary undertakings (1,935) –
Net cash (outflow)/inflow from acquisitions and disposals (11,779) 915
Equity dividends paid (1,440) (469)
Net cash (outflow)/inflow before use of liquid resources and financing (9,337) 4,838
Financing
Issue of new shares 12 4
Repayment of loans (681) (96)
Repayment of loan notes – (416)
Repayment of capital element of finance leases (28) –
(Decrease)/increase in cash (10,034) 4,330
Reconciliation of Net Cash Flow to Movement in Net Debt
2005 2004
Notes £’000 £’000
(Decrease)/increase in cash (10,034) 4,330
Repayment of loans 681 96
Repayment of loan notes – 416
Repayment of capital element of finance leases 28 –
Cash movement in net debt (9,325) 4,842
Non cash movement in net debt 25(b) (6,520) –
Net debt at start of year (11,189) (16,031)
Net debt at end of year (27,034) (11,189)
Consolidated Cash Flow Statement
For the year ended 28th April 2005 34 | Kleeneze Annual Report 2005
2005 2004
£’000 £’000
Profit/(loss) for year excluding share of profits/losses of joint venture and associate 5,070 (3,317)
Share of joint venture’s loss for the year (791) –
Share of associate’s profit for the year 566 660
Profit/(loss) for the year attributable to shareholders 4,845 (2,657)
Exchange difference on re-translation of net assets of subsidiary company (13) (52)
Total gains and losses relating to the year 4,832 (2,709)
Reconciliation of Movement on Shareholders’ Funds
For the year ended 28th April 2005
2005 2004
£’000 £’000
Opening shareholders’ funds (12,828) (8,671)
Total recognised gains and losses 4,832 (2,709)
New shares issued 66 –
Share premium on new shares issued 11 4
Merger reserve arising on new shares issued 2,031 –
Dividends (1,623) (1,452)
Closing shareholders’ funds (7,511) (12,828)
Consolidated Statement of Total Recognised Gains and Losses
For the year ended 28th April 2005 Kleeneze Annual Report 2005 | 35
1. Accounting policies 
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain freehold land and
buildings and certain investments in subsidiary undertakings, and in accordance with applicable accounting standards. 
Basis of consolidation
For the purpose of the preparation of the Group accounts, references made to Group subsidiary companies and the associated company relate
to subsidiary undertakings and the associated undertaking of the Group respectively, as defined by the Companies Act 1985.
The consolidated financial statements incorporate the accounts of Kleeneze plc, its subsidiary companies and its joint venture made up to
28th April 2005 together with its associated company made up to 31st March 2005. 
Goodwill 
Goodwill on consolidation arises under acquisition accounting and represents the excess of the fair value of purchase consideration over the
fair value of the underlying net assets of subsidiaries at the time of acquisition. 
Goodwill arising on acquisitions prior to 30th April 1998 was transferred to reserves in the year in which it arose. Upon the implementation 
of FRS10 – Goodwill and Intangible Assets, goodwill previously eliminated against reserves was not re-instated but will be charged to the profit
and loss account if the businesses to which it relates were to be disposed. 
Goodwill arising on acquisitions since 1st May 1998 is capitalised, classified as an asset on the balance sheet and amortised on a straight-
line basis over its economic life up to a maximum of 20 years. It is reviewed for impairment at the end of the first full financial year following
acquisition and in other periods if events or circumstances indicate that the carrying value may not be recoverable.
Joint venture
An entity is treated as a joint venture when the Group:
• holds an interest on a long term basis
• exercises joint control over it with one or more other venturers under a contractual agreement
The Group’s share of the results of its joint venture is included in the consolidated profit and loss account. The investment in the joint venture
included in the consolidated balance sheet is based on the Group’s share of the assets and liabilities of the joint venture.
Associated company 
A company is treated as an associated company when the Group:
• holds a participating interest in it for the long term; and
• exercises a significant influence over its operating and financial policy decisions.
The Group’s share of the results of its associated company is included in the consolidated profit and loss account. The investment in the
associated company included in the consolidated balance sheet is based on the Group’s share of the net assets of that company.
Turnover 
Group turnover represents sales to external customers at invoiced amounts less value-added tax. 
Depreciation 
Depreciation is provided to write off the cost or valuation, less estimated residual value, of all tangible fixed assets over their expected useful
lives on a straight-line basis. Freehold land is not depreciated. 
Depreciation is calculated at the following rates: 
Freehold buildings – 2% per annum 
Leasehold land and buildings – Depreciated over the remaining life of the leases 
Plant and equipment – 10% – 25% per annum 
Motor vehicles – 25% per annum 
The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value
may not be recoverable.
Catalogue costs
Catalogue costs are deferred and charged to the profit and loss account in the period to which they relate.
Stocks
Stocks are valued at the lower of cost and net realisable value. Cost includes direct expenditure and a proportion of overhead expenses
where applicable.
Pensions
Pension costs in respect of the deficit on the Group’s defined benefit pension schemes are charged to the profit and loss account over ten years.
Contributions payable in respect of the Group’s defined contribution schemes are charged to the profit and loss account during the accounting
period to which they relate. 
Notes Forming Part of the Financial Statements
For the year ended 28th April 2005 36 | Kleeneze Annual Report 2005
1. Accounting policies continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where
transactions or events have occurred at that date that will result in an obligation to pay more tax, or a right to pay less tax, or receive a refund 
of tax, with the following exceptions:
• Provision is made for tax on gains arising from the revaluation (or similar fair value adjustments) of fixed assets, or gains on disposal 
of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding
agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance
sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the
replacement assets are sold.
• Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable
taxable profits from which the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences
reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Discounting of provisions and long term liabilities
Provisions and non-interest bearing liabilities which fall due more than one year after the balance sheet date are discounted. As the discount
unwinds over time, it is charged to the profit and loss account.
Leasing commitments 
Rentals paid under operating leases are charged to income on a straight-line basis over the term of the lease.
Foreign currencies
Foreign currency transactions are recorded at the exchange rates ruling at the dates of the transactions. Monetary assets and liabilities
denominated in foreign currencies are translated at year end exchange rates and resulting exchange differences are dealt with through the
profit and loss account.
The profit and loss accounts of the Group’s overseas businesses are translated at the average exchange rate for the year. The balance sheets
are translated at the exchange rate ruling at the year end date. The exchange differences arising on re-translation are taken to the statement
of total recognised gains and losses. 
The Group uses forward foreign currency contracts to reduce exposure to foreign exchange rates. The Group considers its derivative instruments
qualify for hedge accounting when certain criteria are met. 
The criteria for forward foreign currency contracts are:
• the instrument must be related to a foreign currency asset or liability that is probable and whose characteristics have been identified;
• it must involve the same currency as the hedged item; and
• it must reduce the risk of foreign currency exchange movements on the Group’s operations.
The rates under such contracts are used to record the hedged item. As a result, gains and losses are offset against the foreign exchange
gains and losses on the related financial assets and liabilities or, where the instrument is used to hedge a committed, or probable, future
transaction, are deferred until the transaction occurs. 
2. Segmental analysis
(a) Group turnover and net assets/(liabilities)
2005 2004
Continuing Continuing 
operations – operations – Continuing Discontinued
existing acquisitions Total operations operations Total
£’000 £’000 £’000 £’000 £’000 £’000
Group turnover 170,595 5,279 175,874 158,924 3,313 162,237
Cost of sales (137,424) (3,400) (140,824) (125,720) (3,472) (129,192)
Gross profit/(loss) 33,171 1,879 35,050 33,204 (159) 33,045
Selling and distribution expenses (8,880) (23) (8,903) (8,203) (199) (8,402)
Administrative expenses (9,842) (1,064) (10,906) (10,190) (1,346) (11,536)
Other operating expenses (8,931) (1,048) (9,979) (8,973) (877) (9,850)
Goodwill amortisation (22) (341) (363) (22) – (22)
Total administrative expenses (18,795) (2,453) (21,248) (19,185) (2,223) (21,408)
Operating profit/(loss) 5,496 (597) 4,899 5,816 (2,581) 3,235
Other operating expenses include marketing expenditure, property costs and depreciation.
Notes Forming Part of the Financial Statements continued Kleeneze Annual Report 2005 | 37
2. Segmental analysis continued
(a) Group turnover and net assets/(liabilities) continued
Turnover Net assets/(liabilities)
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Catalogue Home Shopping:
Kleeneze Europe 88,929 82,633 27,900 23,017
Farepak 81,666 76,291 20,949 19,859
Cabouchon 51 – (52) –
Internet Retailing:
IWOOT 4,697 – (35) –
Kitbag 531 – (39) –
Television Shopping:
Kleeneze TV – – (926) –
Continuing operations 175,874 158,924 47,797 42,876
Group – – (54,232) (54,766)
Discontinued operations (DMG) – 3,313 – –
175,874 162,237 (6,435) (11,890)
Proposed dividend (1,076) (938)
(7,511) (12,828)
All turnover originated within the UK, with the exception of £5.4 million which was generated elsewhere in Europe (2004: £4.5 million).
Turnover by destination was not materially different from turnover by source.
The net liabilities figure of £7.5 million (2004: £12.8 million) includes net debt of £27.0 million (2004: £11.2 million). Group net liabilities at 
28th April 2005 reflect a bank overdraft of £21.2 million (2004: £11.6 million) together with intercompany loan balances associated with DMG
which was sold in July 2003.
(b) Operating profit
2005 2004
Operating Operating Operating Operating
profit before profit after profit before profit after
goodwill Goodwill goodwill goodwill Goodwill goodwill
amortisation amortisation amortisation amortisation amortisation amortisation
and and and and and and
exceptional exceptional exceptional exceptional exceptional exceptional
items items items items items items
£’000 £’000 £’000 £’000 £’000 £’000
Catalogue Home Shopping:
Kleeneze Europe
(i) (v)
7,418 (1,011) 6,407 6,639 (1,166) 5,473
Farepak
(ii) (vii)
238 (500) (262) 1,265 (22) 1,243
Cabouchon
(vii)
(81) (14) (95) –––
Internet Retailing:
IWOOT
(vii)
(126) (285) (411) –––
Kitbag
(vii)
(49) (42) (91) –––
Television Shopping:
Kleeneze TV
(iii)
– (340) (340) –––
Group
(iv) (vi)
– (309) (309) – (900) (900)
Continuing operations 7,400 (2,501) 4,899 7,904 (2,088) 5,816
Discontinued operations (DMG) ––– (2,581) – (2,581)
7,400 (2,501) 4,899 5,323 (2,088) 3,235
(i)
Included within the segmental results for Kleeneze Europe in 2005 within administrative expenses are exceptional charges of 
£1.0 million comprising:
• £0.3 million of costs relating to the management restructure programme;
• £0.5 million start-up costs in relation to Kleeneze Europe’s entry into the Netherlands; and
• £0.2 million relating to costs written off as a result of an anticipated change in VAT legislation.
(ii)
Farepak results in 2005 include, within administrative expenses, exceptional charges of £0.5 million in respect of redundancy and
associated costs resulting from the closure of Farepak’s hamper production facilities in Swindon.
(iii)
The Kleeneze TV results in 2005 include, within administrative expenses, charges of £0.3 million relating to set-up costs of eeZee tv.
(iv)
The 2005 Group results reflect, within administrative expenses, exceptional charges of £0.3 million arising on abortive acquisitions.  38 | Kleeneze Annual Report 2005
Notes Forming Part of the Financial Statements continued
2. Segmental analysis continued
(b) Operating profit continued
(v)
Included within the segmental results for Kleeneze Europe in 2004 is an exceptional charge of £1.1 million. During the year, Kleeneze
Europe transferred its warehouse and fulfilment operations to a new site in Bristol. A number of incremental expenses were incurred 
as part of this re-location which included a review of operations and internal re-structuring. These costs are analysed below:
• £0.3 million re-structuring costs primarily associated with the re-organisation of administrative services and training following the
introduction of new technology in the warehouse;
• £0.5 million operating costs incurred as a result of the requirement to run operations from two sites during the period of transfer; and
• £0.3 million in other expenses including additional storage costs incurred prior to completion of the new location.
£0.5 million of the total exceptional charge is included within cost of sales and £0.6 million is included within other operating expenses.
(vi)
The exceptional operating expense of £0.9 million recorded within the Group in 2004 reflects the costs associated with the early
termination of George Pollock’s employment contract on 17th December 2003. This charge incorporates the contractual employment costs
from 1st May 2003 to 17th December 2003 as well as the costs associated with the early termination of his contract. The exceptional
expense of £0.9 million has been included within other operating expenses. 
(vii)
Goodwill amortisation in 2005 of £363,000 relates to Farepak (£22,000), Cabouchon (£14,000), IWOOT (£285,000) and Kitbag
(£42,000). Goodwill amortisation of £22,000 in 2004 related wholly to Farepak.
(c) Segmental analysis of joint venture and associate
2005 2004
Operating Net Operating Net
Turnover profit/(loss) assets Turnover profit/(loss) assets
£’000 £’000 £’000 £’000 £’000 £’000
Catalogue Home Shopping:
Home Farm* 14,084 467 395 14,966 659 411
Television Shopping:
eeZee tv 317 (766) 459 –––
* Group share after re-stating to bring in line with Group accounting policies.
3. Share of profit/(loss) of joint venture and associate
(a) Joint venture – eeZee tv
On 1st October 2004, the Group and John Mills Limited set up eeZee tv as a 50/50 joint venture, to which each partner subscribed £1.0 million
(and subsequently a further £0.25 million) by way of capital. eeZee tv operates a television shopping channel broadcasting on Sky Channel 659.
2005
£’000
Turnover 317
Operating loss (766)
Interest payable (25)
Loss on ordinary activities before taxation (791)
Tax on loss on ordinary activities –
Loss for the year attributable to the Group (791)
Total assets 2,124
Total liabilities (1,665)
Net assets 459 Kleeneze Annual Report 2005 | 39
3. Share of profit/(loss) of joint venture and associate continued
(b) Associate – Home Farm
2005 2004
£’000 £’000
Turnover 14,084 14,966
Operating profit 467 659
Interest receivable 341 281
Profit on ordinary activities before taxation 808 940
Tax on profit on ordinary activities (242) (280)
Profit for the year attributable to the Group 566 660
Total assets 4,559 5,351
Total liabilities (4,164) (4,940)
Net assets 395 411
The results of Home Farm have been re-stated to bring them into line with the Group’s accounting policies.
4. Non-operating exceptional items
2005 2004
£’000 £’000
Profit on disposal of fixed assets – continuing 522 1,243
Profit/(loss) on disposal and closure of discontinued operations 884 (6,846)
1,406 (5,603)
On 11th August 2004, freehold premises were disposed of for cash proceeds of £2.1 million. The net book value of fixed assets disposed was
£1.5 million and the costs of disposal were £0.1 million, giving a profit on disposal of £0.5 million.
On 22nd July 2004, following the disposal of DMG (see below), 190,763 Ordinary shares in Premier Direct Group plc were sold for £1.2 million. 
The net book value of this investment was £0.3 million, giving rise to a profit on disposal of £0.9 million.
On 30th April 2004, the Group disposed of freehold premises for cash proceeds of £4.0 million. The net book value of fixed assets sold was
£2.5 million and the costs of disposal were £0.3 million, giving rise to a profit of £1.2 million.
On 24th July 2003, the Group announced the disposal of the business and assets of DMG to Premier Direct Group plc for cash and share
proceeds of £4.0 million. The net book value of the assets disposed of was £8.1 million and the costs of disposal were £2.7 million, giving 
a loss on disposal of £6.8 million.
5. Net interest payable
2005 2004
£’000 £’000
Interest payable on bank loans and overdrafts (384) (756)
Other interest payable (127) (192)
Amortisation of facilities costs (87) (100)
Bank interest receivable 3 185
Other interest receivable 305 270
(290) (593)
Interest payable on bank loans and overdrafts is stated net of interest receivable on accounts where the bank has a right of offset. 
6. Unwind of discount
2005 2004
£’000 £’000
On loan notes (note 20) 76 –
On contingent deferred consideration (note 21) 91 –
167 –
As described in note 15, loan notes have been issued in respect of the purchase consideration for IWOOT. In addition, provision has been
made for the full amount of contingent deferred consideration payable under the terms of the Sale and Purchase Agreement. The instalments
which fall due more than one year after the balance sheet date have been discounted and the discount is charged to the profit and loss
account as it reduces over time. 40 | Kleeneze Annual Report 2005
7. Profit/(loss) on ordinary activities before tax
2005 2004
£’000 £’000
This is arrived at after charging/(crediting):
Depreciation 1,063 1,085
Amortisation of goodwill 363 22
Auditors’ remuneration:
Audit 144 77
Other services 127 71
Operating lease rentals: 
Land and buildings 530 726
Plant and machinery 214 447
Profit on sale of fixed assets (23) (80)
Additional auditors’ remuneration of £59,000 (2004: £nil) was incurred for other services relating to business acquisitions during the year and
has been capitalised within acquisition costs.
8. Employees
The average monthly number of employees of the Group during the year, including executive directors, was as follows:
2005 2004
Number Number
Administration 246 233
Production and sales 283 362
529 595
Staff costs for all employees, including the executive directors, comprise:
2005 2004
£’000 £’000
Wages and salaries 9,553 10,235
Social security costs 963 887
Pension costs 371 566
10,887 11,688
Details of the remuneration, compensation for loss of office, pension entitlements and share options for each director are shown within the
Directors’ Remuneration Report. 
9. Tax on profit/(loss) on ordinary activities
2005 2004
£’000 £’000
UK corporation tax for the year
Pre-exceptional 1,556 1,206
Exceptional tax credit (420) (934)
1,136 272
Under/(over) provision in prior years
Pre-exceptional 309 (65)
Exceptional tax credit (423) –
(114) (65)
Group current tax 1,022 207
Share of associated company’s tax charge 242 280
Total current tax 1,264 487
Deferred tax
Pre-exceptional 26 149
Exceptional (270) –
Deferred tax total – origination and reversal of timing differences (244) 149
1,020 636
Current year tax charge 2,133 1,570
Exceptional tax credit (1,113) (934)
1,020 636
Notes Forming Part of the Financial Statements continued Kleeneze Annual Report 2005 | 41
9. Tax on profit/(loss) on ordinary activities continued
Exceptional tax credit
The exceptional tax credit of £1,113,000 (2004: £934,000 credit) comprises an exceptional current tax credit of £420,000, an exceptional
prior year tax credit of £423,000 and an exceptional deferred tax credit of £270,000.
The tax effect shown within the profit and loss account relating to the operating exceptional items is:
2005 2004
£’000 £’000
Re-structure of operations 69 –
Kleeneze Europe development costs 124 –
eeZee tv start-up costs 100 –
Fees re anticipated VAT legislation change 67 –
Employment termination costs 205 234
Transfer of Kleeneze Europe’s operations – 109
Current year exceptional tax credit 565 343
Exceptional tax credit relating to prior year 423 –
Total exceptional tax credit on operating exceptional items 988 343
The tax effect relating to the exceptional items and recognised below operating profit is:
2005 2004
£’000 £’000
Disposal of property (145) –
Transfer of Kleeneze Europe’s operations – 342
Sale and closure of DMG – 249
Current year exceptional tax (charge)/credit (145) 591
Exceptional deferred tax credit on disposal of property 270 –
Total exceptional tax credit on exceptional items recognised below operating profit 125 591
The tax assessed for the year is lower (2004: higher) than the standard rate of corporation tax in the UK (30%). The differences are as follows:
2005 2004
£’000 £’000
Profit/(loss) on ordinary activities before tax 5,865 (2,021)
Profit/(loss) on ordinary activities before tax multiplied by the standard rate of UK corporation tax (30%) 1,759 (606)
Tax effects of:
Adjustments to tax charge in respect of previous years 309 (65) 
Exceptional tax credit in respect of previous years (422) –
Expenses deductible for tax in future years (29) –
Net expenses not deductible for tax purposes 237 245
Capital allowances in advance of depreciation (313) (144)
Utilisation of losses brought forward (277) –
Unrelieved losses carried forward – 1,057
Actual current tax charge 1,264 487
The Group expects that the depreciation charge will exceed available capital allowances in future years.
In accordance with the requirements of FRS19, no provision has been made for deferred tax on gains recognised on the revaluation of freehold
land and buildings. However, due to the level of capital losses available within the Group, no tax would be payable if the properties were sold 
at the re-valued amounts.
10. Profit for the year attributable to the members of Kleeneze plc
2005 2004
£’000 £’000
Dealt with in the financial statements of the parent company 2,356 2,915
The profit and loss account of Kleeneze plc is not presented in accordance with the exemptions permitted by s.230 of the Companies Act 1985. 42 | Kleeneze Annual Report 2005
11. Dividends
2005 2004
£’000 £’000
Non-equity dividends:
Cumulative Preference Shares 45 45
Equity dividends:
Ordinary shares of 5p each:
Interim paid (2005: 1.07 pence per share; 2004: 1.00 pence per share) 502 469
Final proposed (2005: 2.23 pence per share; 2004: 2.00 pence per share) 1,076 938
1,623 1,452
12. Earnings/(loss) per Ordinary share
Basic earnings per share
Basic earnings per share has been calculated on the weighted average number of Ordinary shares in issue during the financial year of
47,004,110 (2004: 46,886,157) and using a profit after taxation and preference dividends of £4,800,000 (2004: £2,702,000 loss). 
Diluted earnings per share
Diluted earnings per share has been calculated using an average number of shares of 47,474,061 (2004: 47,314,680) and using a profit
after tax and preference dividends of £4,800,000 (2004: £2,702,000 loss). The average number of shares has been adjusted for the dilutive
impact of shares under the Kleeneze plc share option schemes totalling 469,951 shares (2004: no adjustment). Details of the share option
schemes are given in note 23.
Normalised basic earnings per share
Normalised basic earnings per share has been calculated using the profit after taxation and preference dividends on continuing operations,
before goodwill amortisation and exceptional items, of £4,782,000 (2004: £6,024,000). Taxation of £2,133,000 has been charged against
the profit arising on continuing operations before goodwill amortisation and exceptional items in the year (2004: £2,182,000). The weighted
average number of Ordinary shares in issue used in the calculation of normalised basic earnings per share is 47,004,110 (2004: 46,886,157).
2005 2004
£’000 £’000
Profit/(loss) after tax and preference dividends 4,800 (2,702)
Add back: discontinued operations after tax – 1,969
(Deduct)/add back: exceptional items after tax (381) 6,735
Add back: goodwill amortisation 363 22
Normalised earnings 4,782 6,024
Normalised diluted earnings per share
Normalised diluted earnings per share has been calculated using the profit after taxation and preference dividends on continuing operations,
before goodwill amortisation and exceptional items, of £4,782,000 (2004: £6,024,000). Taxation of £2,133,000 has been charged against
the profit arising on continuing operations before goodwill amortisation and exceptional items in the year (2004: £2,182,000). The weighted
average number of Ordinary shares in issue used in the calculation of normalised diluted earnings per share is 47,474,061 (2004: 47,314,680).
The average number of shares has been adjusted for the dilutive impact of shares under Kleeneze plc share option schemes totalling 469,951
shares (2004: 428,523).
Normalised earnings per share are included in order to provide a better understanding of the underlying trading performance of the Group.
13. Intangible fixed assets
Goodwill
Group £’000
Cost
At 1st May 2004 442
Acquisitions 22,722
At 28th April 2005 23,164
Amortisation
At 1st May 2004 (22)
Charge in the year (363)
At 28th April 2005 (385)
Net book value
At 28th April 2005 22,779
At 30th April 2004 420
Notes Forming Part of the Financial Statements continued Kleeneze Annual Report 2005 | 43
13. Intangible fixed assets continued
Goodwill arising on acquisitions in the year comprises:
Fair value
of net
assets
Consideration acquired Goodwill
£’000 £’000 £’000
Cabouchon 471 40 431
IWOOT 10,133 (1,133) 11,266
Kitbag 9,836 (1,189) 11,025
20,440 (2,282) 22,722
Goodwill in respect of Goodway Hampers, Cabouchon, IWOOT and Kitbag is being amortised in each case over a period of 20 years, being the
directors’ assessment of its useful life. 
14. Tangible fixed assets 
Plant,
Land and equipment
buildings and vehicles Total
Group £’000 £’000 £’000
Cost or valuation
At 1st May 2004 12,284 6,647 18,931
Additions 57 1,936 1,993
Acquired with subsidiaries 42 611 653
Disposals (1,817) (532) (2,349)
At 28th April 2005 10,566 8,662 19,228
Depreciation
At 1st May 2004 2,431 4,458 6,889
Provision for the year 268 795 1,063
Disposals (337) (497) (834)
At 28th April 2005 2,362 4,756 7,118
Net book value
At 28th April 2005 8,204 3,906 12,110
At 30th April 2004 9,853 2,189 12,042
The Company has adopted the transitional provisions contained within FRS15 – Tangible Fixed Assets. Revalued properties will continue 
to be stated at their valuation, which has not been updated.
The Group’s freehold and long leasehold land and buildings (excluding those acquired since 1997) were valued by Gerald Eve, Chartered Surveyors
as at 30th April 1997 at £7.3 million on the basis of their existing use value in accordance with the Appraisal and Valuation Manual of the Royal
Institution of Chartered Surveyors. This compared with a book value of £7.3 million, inclusive of the previous valuation, in the accounts at that date.
The net book value of land and buildings comprises:
2005 2004
£’000 £’000
Freehold investment property at valuation 1,000 1,000
Freehold properties at cost or valuation 3,950 5,473
Long leasehold 1,000 1,000
Short leasehold properties at cost 2,254 2,380
8,204 9,853
The freehold investment property was sold for £1.0 million in June 2005.
The net book value of land and buildings calculated on an historical cost basis is as follows:
2005 2004
£’000 £’000
Freehold investment property 1,000 1,000
Freehold 3,539 5,062
Long leasehold 1,000 1,000
Short leasehold 2,254 2,380
7,793 9,442
At 28th April 2005 the Group had no contracted commitments for capital expenditure (2004: £0.1 million). 44 | Kleeneze Annual Report 2005
14. Tangible fixed assets continued
Plant,
equipment
and vehicles
Company £’000
Cost 
At 1st May 2004 140
Additions 31
Disposals (48)
At 28th April 2005 123
Depreciation
At 1st May 2004 26
Provision for the year 39
Disposals (32)
At 28th April 2005 33
Net book value
At 28th April 2005 90
At 30th April 2004 114
At 28th April 2005 the Company had no contracted commitments for capital expenditure (2004: £nil). 
15. Fixed asset investments
2005
Group £’000
Investment in joint venture
At 1st May 2004 –
Investments during the year 1,654
Loans advanced during the year 1,313
Share of loss for the year (791)
At 28th April 2005 2,176
Investment in associate
At 1st May 2004 411
Share of profit for the year 566
Dividend received (560)
Dividend receivable (22)
At 28th April 2005 395
2005
Group and Company £’000
Other fixed asset investments
At 1st May 2004 334
Disposals (334)
At 28th April 2005 –
2005
Company £’000
Investments in subsidiaries
Cost or valuation
At 1st May 2004 18,674
Acquisitions 9,836
At 28th April 2005 28,510
Amounts provided
At 1st May 2004 (15,368)
Provided in the year –
At 28th April 2005 (15,368)
Net book value
At 28th April 2005 13,142
At 30th April 2004 3,306
Notes Forming Part of the Financial Statements continued Kleeneze Annual Report 2005 | 45
15. Fixed asset investments continued
The following were principal trading subsidiaries, associated companies and joint venture interests at the end of the year:
Name Proportion of ordinary share capital indirectly held Nature of business
Subsidiaries:
Farepak Food & Gifts Limited 100% Catalogue retail
Kleeneze UK Limited 100% Catalogue retail
Kleeneze Ireland Limited 100% Catalogue retail
I Want One of Those.Com Limited 100% Internet retail
Kitbag Limited 100% Internet retail
Associated Company:
Home Farm Hampers Limited 40% Catalogue retail
Joint Venture Partnership:
eeZee tv LLP 50% Television retail
All companies and the joint venture partnership are registered and operate in the United Kingdom with the exception of Kleeneze Ireland,
which is registered in the Republic of Ireland. Kleeneze UK also operates in the Netherlands.
Acquisitions
(i) Cabouchon
On 6th September 2004, the Group acquired certain assets of Cabouchon International Limited and The Costume Jewellery Company Limited
for a total consideration of £0.4 million. 
The following table sets out the book values of the identifiable assets acquired and their fair value to the Group:
Book Revaluation Fair value to
value adjustments the Group
£’000 £’000 £’000
Tangible fixed assets 25 (25)
(a)
–
Stock 90 (50)
(b)
40
115 (75) 40
Goodwill arising on acquisition 431
471
Discharged by:
Cash consideration 400
Acquisition costs 71
471
Adjustments:
(a)
Write-down of fixed assets following the re-assessment of value.
(b)
Provision against slow-moving and obsolete stock.
In the year to 28th April 2005, Cabouchon made no contribution to the Group’s net operating cash flow and total cash flow. 46 | Kleeneze Annual Report 2005
15. Fixed asset investments continued
(ii) I Want One of Those.Com Limited
On 25th October 2004 the Group acquired the entire share capital of I Want One of Those.com Limited for a base consideration of £6.0 million,
with further contingent deferred consideration of up to £4.65 million, dependent on the achievement of certain profit related targets for the
years ending 30th April 2006, 30th April 2007 and 30th April 2008.
The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the Group:
Book Revaluation Fair value to
value adjustments the Group
£’000 £’000 £’000
Tangible fixed assets 491 – 491
Stock 487 (20)
(a)
467
Debtors 262 (26)
(b)
236
Overdraft (201) – (201)
Creditors (due within one year) (1,650) – (1,650)
Creditors (due after more than one year) (473) – (473)
Deferred taxation (3) – (3)
(1,087) (46) (1,133)
Goodwill arising on acquisition 11,266
10,133
Discharged by:
Base consideration (loan notes) 5,660
Contingent deferred consideration 4,139
Acquisition costs 334
10,133
Adjustments:
(a)
Provision against slow-moving and obsolete stock.
(b)
Write-down of debtors following re-assessment of the bad debt provision.
The base consideration is payable in three instalments of £2.25 million, £1.875 million and £1.875 million in June 2005, June 2006 
and June 2007 respectively. The contingent deferred consideration is payable in three instalments of up to £1.55 million each following the
determination of the profit for each of the three relevant years. The consideration has been discounted to reflect the time value of money.
In the year to 28th April 2005, IWOOT absorbed £0.2 million of the Group’s net operating cash flow, utilised £0.2 million for capital expenditure
and repaid £0.6 million of loans.
In the period from 1st April 2004 to its acquisition on 25th October 2004, IWOOT recorded a loss after tax of £0.9 million (year ended 
31st March 2004: £0.2 million loss). 
Notes Forming Part of the Financial Statements continued Kleeneze Annual Report 2005 | 47
15. Fixed asset investments continued
(iii) Kitbag Sports Limited
On 1st April 2005, the Group acquired the entire share capital of Kitbag Sports Limited for initial consideration of £9.3 million, with a further
contingent deferred consideration of up to £0.3 million, which will fall due for payment within one year, dependent upon the achievement of
certain targets.
The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the Group:
Alignment of
Book Revaluation accounting Fair value to
value adjustments policies the Group
£’000 £’000 £’000 £’000
Tangible fixed assets 193 (31)
(a)
– 162
Stock 1,676 (281)
(b)
– 1,395
Debtors 865 (53)
(c)
– 812
Overdraft (1,734) –– (1,734)
Creditors (due within one year) (1,603) – (221)
(d)
(1,824)
(603) (365) (221) (1,189)
Goodwill arising on acquisition 11,025
9,836
Discharged by:
Cash consideration 7,204
Fair value of shares issued 2,096
Contingent deferred consideration 300
Acquisition costs 236
9,836
(a)
Write-off of capitalised staff costs associated with the transfer of operations.
(b)
Write-down of stock following re-assessment of stock values.
(c)
Non-current catalogue costs written off.
(d)
Additional commission and other creditors.
In the year to 28th April 2005, Kitbag contributed £0.5 million to the Group’s net operating cash flow and total cash flow.
In the period from 1st August 2004 to its acquisition on 1st April 2005, Kitbag recorded a loss after tax of £0.4 million (year ended 
31st July 2004: £0.6 million loss).
16. Stocks
Group
2005 2004
£’000 £’000
Goods for resale 10,986 6,861
The difference between purchase price or production cost of stocks and their replacement cost is not material.
17. Debtors
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Trade debtors 5,307 5,076 – –
Amount owed by associate 27 54 – –
Dividend receivable from associate 22 706 – –
Dividends receivable from subsidiaries – – 4,200 2,000
Amounts owed by subsidiaries – – 15,396 9,666
Amounts owed by joint venture 148 – 30 –
Corporation tax – 530 1,582 118
Other debtors 208 64 – –
Prepayments 3,375 4,657 290 182
Deferred tax asset (note 22) – – 48 3
9,087 11,087 21,546 11,969 48 | Kleeneze Annual Report 2005
18. Cash at bank and in hand
Group
2005 2004
£’000 £’000
Cash 581 1,019
19. Creditors: amounts falling due within one year
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Current instalments due on loans 194 88 – –
Bank overdraft 21,213 11,617 – –
Current instalments due on loan notes (note 20) 2,544 294 294 294
Obligations under finance leases 66 – – –
Trade creditors 25,768 27,599 – –
Amounts owed to subsidiaries – – 23,335 7,833
Corporation tax 558 – – –
Social security and other taxes 759 1,044 138 –
Accruals and sundry creditors 4,936 2,700 833 708
Contingent deferred consideration 300 – 300 –
Dividends payable 1,087 938 1,087 938
57,425 44,280 25,987 9,773
The overdraft and the loan notes are secured by a mortgage debenture in favour of Bank of Scotland covering all the Group’s fixed property and
short term assets.
Cash deposits of £2,545,000 (2004: £25,000) have been set off in arriving at the bank overdraft balance as the bank has a right of offset
between these accounts. 
20. Creditors: amounts falling due after more than one year
Group
2005 2004
£’000 £’000
Loans 112 209
Loan notes 3,486 –
Accruals and sundry creditors 100 –
3,698 209
The movement on the loan notes balance is as follows:
Group £’000
At 1st May 2004 294
Issued in the year 5,660
Increase due to unwinding of discount 76
At 28th April 2005 6,030
Falling due within one year 2,544
Falling due after more than one year 3,486
6,030
The maturity of the aggregate loans and loan note balances is as follows: 
Group
2005 2004
£’000 £’000
Accounts falling due:
In one year or less or on demand 2,738 88
In more than one year but not more than two years 1,987 94
In more than two years but not more than five years 1,875 115
6,600 297
Less: Loan note discount (264) –
6,336 297
Less: Included in creditors falling due within one year (2,738) (88)
3,598 209
Notes Forming Part of the Financial Statements continued Kleeneze Annual Report 2005 | 49
21. Deferred consideration
Group £’000
At 1st May 2004 –
Acquisitions during the year 4,139
Increase due to unwinding of discount 91
At 28th April 2005 4,230
The provision relates to the contingent deferred consideration payable of £4.65 million on the acquisition of IWOOT, payable over more than 
one year.
22. Deferred taxation
2005 2004
Unprovided Provided Unprovided Provided 
Group £’000 £’000 £’000 £’000
Losses (1,910) (74) (816) –
Accelerated capital allowances (15) 390 12 565
Pension costs – (44) – (50)
Other timing differences –– – (2)
(1,925) 272 (804) 513
The deferred tax asset of £1.9 million (2004: £0.8 million) has not been recognised as it is not expected to be offset against future taxable
profits in the relevant Group company.
2005 2004 
Group £’000 £’000
At 1st May 2004 513 364
Transfer to profit and loss account – origination and reversal of timing differences 26 149
Transfer to profit and loss account – exceptional (270) –
Balance acquired with subsidiary undertaking (note 15) 3 –
At 28th April 2005 272 513
No deferred tax has been provided on the revaluation reserve shown in note 24 as the Group has not entered into any binding agreement to
sell the re-valued assets. Due to the level of capital losses available in the Group, no tax would be payable if the properties were sold at the
re-valued amounts (2004: £nil).
2005 2004
Unprovided Provided Unprovided Provided
Company £’000 £’000 £’000 £’000
At 1st May 2004 – (3) – (36)
Losses (352) – ––
Transfer (from)/to profit and loss account – (45) – 33
At 28th April 2005 (352) (48) – (3) 50 | Kleeneze Annual Report 2005
23. Share capital
2005 2004
£’000 £’000
Authorised
63,000,000 (2004: 63,000,000) Ordinary shares of 5p each 3,150 3,150
499,980 9% Cumulative Preference Shares of £1 each 500 500
3,650 3,650
Allotted, called up and fully paid
48,210,260 (2004: 46,889,369) Ordinary shares of 5p each 2,410 2,344
499,980 9% Cumulative Preference Shares of £1 each 500 500
2,910 2,844
During the year, options were exercised over 10,993 Ordinary shares under the terms of the Discretionary Share Option Scheme for a total
consideration of £12,000. A further 1,309,898 Ordinary shares were issued to the shareholders of Kitbag Sports Limited as part of the initial
consideration for the acquisition of the company, at an agreed fair value of £2,096,000. The aggregate nominal value of the Ordinary shares
issued in the year was £66,000.
9% Cumulative Preference Shares provide for a total fixed dividend of £3,750 per month payable in arrears. Preference shareholders are
entitled to attend general meetings of the Company but have no voting rights. There is no redemption entitlement. Upon the winding up of 
the Company, the Preference shareholders have a right to receive, in preference to payments to Ordinary shareholders, the amounts paid 
up on the Preference Shares together with a sum equal to any arrears and accruals of the fixed dividend calculated to the date of the return 
of capital and payable whether or not such dividend has been declared.
At 28th April 2005 options outstanding were as follows:
Ordinary shares Dates Exercise price
Number exercisable £
Kleeneze 1996 Discretionary Share Option Scheme:
Performance-related† 16,738 20.01.2002 to 19.01.2007 1.9625
83,652 28.09.2002 to 27.09.2009 2.8750
110,503 30.06.2003 to 29.06.2010 2.1900
127,559 31.10.2003 to 30.10.2010 1.8800
187,148 27.09.2004 to 26.09.2011 1.7750
37,977 18.02.2005 to 17.08.2005 1.1000
258,269 27.09.2005 to 26.09.2012 1.1000
Performance-related* 845,528 09.01.2006 to 08.01.2013 0.6150
Performance-related* 379,310 17.12.2006 to 16.12.2013 1.4500
Performance-related* 428,015 15.12.2007 to 14.12.2014 1.2850
Non-performance-related 191,198 20.01.2000 to 19.01.2007 1.9625
Kleeneze plc Executive Share Option Scheme: 10,434 04.10.2002 to 03.10.2009 2.8750
Non-performance-related 27,396 30.06.2003 to 29.06.2010 2.1900
31,031 27.09.2005 to 26.09.2012 1.1000
Performance-related* 48,780 09.01.2006 to 08.01.2013 0.6150
† Performance-related options are exercisable in the event that the increase in earnings per share during the period from the date of grant 
of options to the date of exercise exceeds the increase in the Retail Price Index plus 3% per annum.
* Performance-related options granted to William Rollason. Details of the performance criteria are shown in the Remuneration Report.
Notes Forming Part of the Financial Statements continued Kleeneze Annual Report 2005 | 51
24. Reserves
Share Profit
Merger premium Revaluation and loss
reserve account reserve account
Group £’000 £’000 £’000 £’000
At 1st May 2004 – 1,143 411 (17,226)
Premium on issue of shares – 11––
Merger reserve arising on new shares issued 2,031–––
Transfer from merger reserve (2,031) – – 2,031
Retained profit for the year – – – 3,222
Exchange difference on re-translation of net assets of subsidiary undertaking – – – (13)
At 28th April 2005 – 1,154 411 (11,986)
Share Profit
Merger premium Revaluation and loss
reserve account reserve account
Company £’000 £’000 £’000 £’000
At 1st May 2004 – 1,143 – 1,963
Premium on issue of shares – 11––
Merger reserve arising on new shares issued 2,031–––
Retained profit for the year ––– 733
At 28th April 2005 2,031 1,154 – 2,696
The cumulative amount of goodwill written off by the Group at 28th April 2005, net of goodwill relating to undertakings disposed of, is £18.9 million
(2004: £18.5 million).
25. Cash flow statement
(a) Reconciliation of operating profit to net cash inflow from operating activities:
2005 2004 
Continuing Discontinued Continuing Discontinued
operations operations Total operations operations Total
£’000 £’000 £’000 £’000 £’000 £’000
Operating profit/(loss) 4,899 – 4,899 5,816 (2,581) 3,235
Depreciation 1,063 – 1,063 967 118 1,085
Goodwill amortisation 363 – 363 –––
(Increase)/decrease in stocks (2,263) – (2,263) (290) 1,068 778
Decrease/(increase) in operating debtors and prepayments 1,735 (18) 1,717 (435) 1,005 570
(Decrease)/increase in operating creditors and accruals (2,585) (240) (2,825) 265 (1,687) (1,422)
(Profit)/loss on sale of tangible fixed assets (29) 6 (23) (80) – (80)
(1,716) (252) (1,968) 427 504 931
Net cash inflow/(outflow) from operating activities 3,183 (252) 2,931 6,243 (2,077) 4,166
(b) Analysis of net debt:
Non-cash 
2005 Cash flow movements 2004
£’000 £’000 £’000 £’000
Cash at bank and in hand 581 (438) – 1,019
Bank overdrafts (21,213) (9,596) – (11,617)
Net cash (20,632) (10,034) – (10,598)
Loan notes (6,030) – (5,736) (294)
Loans (306) 681 (690) (297)
Finance leases (66) 28 (94) –
Net debt (27,034) (9,325) (6,520) (11,189)
The non-cash movements represent loan notes issued upon the acquisition of IWOOT (plus the subsequent unwind of discount thereon) 
and loans and finance leases assumed upon the acquisitions of IWOOT and Kitbag. 52 | Kleeneze Annual Report 2005
25. Cash flow statement continued
(c) Cash flows relating to operating exceptional items:
Net cash inflow from operating activities in the year ended 28th April 2005 includes:
• a cash outflow of £0.5 million in respect of restructuring costs across the Group
• a cash outflow of £0.1 million in respect of abortive acquisition costs
• a cash outflow of £0.5 million in respect of Kleeneze Europe’s expansion into the Netherlands
• a cash outflow of £0.2 million in respect of costs relating to costs written off as a result of an anticipated change in VAT legislation
• a cash outflow of £0.3 million in respect of set-up costs for eeZee tv
• a cash outflow of £0.4 million in respect of a prior year re-location by Kleeneze Europe 
• a cash outflow of £1.0 million in respect of VAT and costs relating to a prior year property disposal 
Net cash inflow from operating activities in the year ended 30th April 2004 included a cash outflow of £0.8 million arising from the re-location 
of Kleeneze Europe’s operations and a cash outflow of £0.8 million in respect of the early termination of George Pollock’s employment contract.
(d) Cash flows relating to non-operating exceptional items:
Net cash outflow from investing activities in the year ended 28th April 2005 includes:
• a cash inflow of £2.1 million in respect of the sale of freehold premises formerly used by Farepak
• a cash inflow of £1.2 million in respect of the sale of Premier Direct Group plc shares
Net cash outflow from investing activities in the year ended 30th April 2004 included a cash inflow of £3.7 million in respect of the sale 
of premises formerly used by Kleeneze Europe’s UK operations. Net cash inflow from acquisitions and disposals included a cash inflow 
of £1.2 million in respect of the disposal of the business and assets of DMG.
26. Derivatives and other financial instruments
An explanation of the Group’s objectives, policies and strategies for the role of derivatives and other financial instruments is given in the
Finance Review. The disclosure below excludes short term debtors and creditors, with the exception of the analysis of currency exposures.
Interest rate risk profile of financial liabilities
The interest rate exposure and currency profile of the financial liabilities of the Group at 28th April was:
Group Zero rate Fixed rate Floating rate 
financial financial financial
liabilities liabilities liabilities Total
2005 £’000 £’000 £’000 £’000
Sterling 10,956 66 24,052 35,074
Total 10,956 66 24,052 35,074
2004
Sterling 297 – 11,936 12,233
Total 297 – 11,936 12,233
The zero rate liabilities comprise a loan of £100,000 (2004: £nil) repaid in May 2005, a loan of £206,000 (2004: £297,000) repayable 
in equal quarterly instalments by June 2007, loan notes of £6,000,000 (2004: £nil) payable over the period to June 2007 and contingent
deferred consideration of £4,650,000 (2004: £nil) payable over the period to June 2008, as set out in note 15. The loan note balance
included in the balance sheet and shown in note 20 is stated net of discount of £264,000 (2004: £nil). The provision for contingent deferred
consideration included in the balance sheet and shown in note 21 is stated net of discount of £420,000.
The fixed rate financial liabilities comprise finance lease obligations of £66,000 (2004: £nil) which bear interest at a weighted average rate 
of 17%.
The floating rate liabilities comprise overdraft balances of £23,758,000 (2004: £11,642,000) which bear interest at a rate based on the 
Bank of Scotland base rate and loan notes of £294,000 (2004: £294,000) which bear interest at a rate based on LIBOR.
Cash deposits of £2,545,000 (2004: £25,000) have been set off against the overdraft balances in arriving at the net cash shown in note 18
and the net bank overdraft shown in note 19 as the bank has a right of offset between these accounts.
Borrowing facilities
Details of the Group’s borrowing facilities are given in the Finance Review. 
Interest rate risk profile of non-equity shares
The Company has in issue £499,980 (2004: £499,980) non-redeemable Cumulative Preference Shares of £1 each carrying a fixed dividend 
of 9% per annum. The fair value of the Preference Shares is not materially different to the carrying value.
Notes Forming Part of the Financial Statements continued Kleeneze Annual Report 2005 | 53
26. Derivatives and other financial instruments continued
Interest rate risk profile of financial assets
The interest rate exposure of the financial assets of the Group at 28th April was:
Group
2005 2004
£’000 £’000
Floating rate cash deposits
Sterling 744 830
US$ 833 3
Euro 1,549 211
Floating rate loans to joint venture
Sterling 1,313 –
Total 4,439 1,044
Cash deposits earn interest at floating rates based on bank base rates. Loans to eeZee tv earn interest at base rate plus 1.375%.
Currency exposures
With the exception of Kleeneze Ireland and turnover in the Netherlands where the functional currency is the Euro, all other Group companies
operate in Sterling. The principal differences on exchange which are taken to the profit and loss account arise where purchases are made 
by Group companies in a currency different to their reporting currency.
The table below shows the Group’s currency exposure, being the net monetary assets/(liabilities) of the Group that are not denominated in 
the operating currency of the relevant operating unit as at 28th April:
Operating currency – Sterling
2005 2004
Currency of assets/(liabilities) £’000 £’000
Euro 378 22
US$ (35) 3
Total 343 25
Operating currency – Euro
2005 2004
Currency of assets/(liabilities) £’000 £’000
Sterling 782 –
Total 782 –
The amounts shown in the above tables take into account the effect of forward foreign currency contracts entered into to manage these exposures.
Fair values of financial assets and financial liabilities
At 28th April the book value and fair value of the Group’s financial assets and liabilities was as follows:
Book value and fair value
2005 2004
£’000 £’000
Borrowings:
Overdrafts (23,758) (11,642)
Loan notes (6,030) (294)
Term loans (306) (297)
Finance leases (66) –
Contingent deferred consideration (4,230) –
Cash and short term deposits:
Sterling 744 830
Foreign currencies 2,382 215
Loans to joint venture 1,313 –
Premier Group Direct plc shares – 334
In addition, there were outstanding forward foreign currency contracts with a book value of £nil (2004: £nil) and a fair value liability, reflecting
the difference between the contracted and year end forward exchange rates for like contracts, of £31,000 (2004: £178,000 asset). 54 | Kleeneze Annual Report 2005
26. Derivatives and other financial instruments continued
Hedges
The Group’s policy is to hedge 75% of the transactional currency exposures on future purchases denominated in a currency other than Sterling. 
Gains and losses on hedging instruments are not recognised until the exposure that is being hedged is itself recognised. Unrecognised gains
and losses on hedges were as follows:
2005 2004
£’000 £’000
(Losses)/gains unrecognised at 28th April, expected to be recognised in the following year (38) 178
Gains/(losses) included in the profit and loss account that arose in previous years 178 (84)
Notional amount of forward contracts outstanding at 28th April 2,026 1,134
Average exchange rate of forward contracts US$1.87 US$1.83
27. Pensions
The Group operates two pension schemes for employees. One is a funded defined benefit scheme, which is closed to entrants and further
accrual, the other is a group personal pension plan.
The Group has continued to account for pensions in accordance with SSAP 24 and the disclosures given in (a) below are in accordance with
that standard. FRS17 – Retirement Benefits, was issued in November 2000 but is not yet mandatory for the Group. The transitional disclosures,
where these differ from or are not included in the disclosures under SSAP 24, are given in (b) below.
Defined benefit scheme
(a) The defined benefit scheme provides benefits based on final pensionable pay. The assets of this scheme are held separately from those 
of the Company. The most recent valuation was carried out by a qualified independent actuary as at 30th April 2004 using the projected unit method.
The scheme is closed to new entrants and service accrual for members ceased last financial year. The assumptions which have the most
significant effect on the results of the valuation are those relating to the rate of return on investments and the rate of increase in pensions. 
The 30th April 2004 valuation assumed that investment returns would be 7% per annum (pre-retirement) and 5% per annum (post-retirement)
and that accrued pensions would increase at the rate of 3% per annum. 
The valuation showed that the market value of the scheme’s assets was £2.5 million and the actuarial value of those assets represented 82% 
of the benefits that had accrued to members, after allowing for expected future increases in the Limited Price Index. The contribution rate
recommended by the actuary for future years provided for a contribution of £75,000 per annum over 10 years. The directors believe that this
will be sufficient to cover future liabilities of the scheme and to take into account the fact that the scheme is closed to new members and the
age profile of the membership is rising.
(b) The additional disclosures required by FRS17 are set out below. The valuation carried out at 30th April 2004 has been updated to 
28th April 2005 by a qualified independent actuary. The major assumptions used by the actuary were:
At 28th April At 30th April 
2005 2004
% per annum % per annum
Rate used to discount scheme liabilities 5.25 5.75
Rate of price inflation 2.75 3.00
Rate of increase of pensions in payment 2.75 3.00
Rate of increases to deferred pensions in excess of the guaranteed minimum pension 2.75 3.00
Expected Expected 
long term rate long term rate 
of return at Fair value at of return at Fair value at
28th April 28th April 30th April 30th April
2005 2005 2004 2004
% £’000 %£’000
Assets:
Equities 8.00 1,293 ––
Bonds 5.25 897 ––
Cash 4.50 26 ––
Units –– 7.00 2,465
Market value of assets 2,216 2,465
Present value of scheme liabilities (2,958) (2,983)
Scheme deficit (742) (518)
Deferred tax 223 155
Net pension liability (519) (363)
Notes Forming Part of the Financial Statements continued Kleeneze Annual Report 2005 | 55
27. Pensions continued
If the above amounts had been recognised in the accounts, the Group’s net liabilities and profit and loss account at 28th April 2005 would
have been as follows:
2005 2004
£’000 £’000
Net liabilities:
Net liabilities excluding pension liability (7,511) (12,828)
Net pension liability (519) (363)
Net liabilities including pension liability (8,030) (13,191)
Reserves:
Profit and loss account excluding pension liability (11,986) (17,226)
Net pension liability (519) (363)
Profit and loss account including pension liability (12,505) (17,589)
The amount that would have been charged/(credited) to operating profit had FRS17 been operative during the year is as follows:
2005 2004
£’000 £’000
Current service – 93
Gains on settlement or curtailments – (447)
– (354)
The amount that would have been credited/(charged) to finance costs had FRS17 been operative during the year is as follows:
2005 2004
£’000 £’000
Expected return on pension scheme assets 160 132
Interest on pension scheme liabilities (158) (165)
2 (33)
The amounts that would have been recognised in the statement of total recognised gains and losses had FRS17 been operative during the
year is as follows:
2005 2004 2003
£’000 £’000 £’000
Actual return less expected return on pension scheme assets (38) 289 (518)
Experience gains/(losses) arising on the scheme liabilities 92 (197) 240
Changes in assumptions underlying the present value of the scheme liabilities (366) 89 141
Actuarial (loss)/gain that would be recognised in the statement of total gains and losses (312) 181 (137)
The movement in the deficit during the year was as follows:
2005 2004
£’000 £’000
Deficit in the scheme at the start of the year (518) (1,179)
Movement in the year:
Current service cost – (93)
Contributions 86 159
Settlements or curtailments – 447
Other finance income/(costs) 2 (33)
Actuarial (loss)/gain (312) 181
Deficit in the scheme at the end of the year (742) (518) 56 | Kleeneze Annual Report 2005
27. Pensions continued
The history of experience gains and losses that would have been recognised in the statement of total recognised gains and losses was as follows:
2005 2004 2003
£’000 £’000 £’000
Difference between the expected and actual return on scheme assets:
(Shortfall)/surplus (38) 289 (518)
Percentage of assets (2%) 12% 27%
Experience gains and losses on scheme liabilities:
Amount 92 (197) 240
Percentage of the present value of scheme liabilities 3% (7%) 8%
Total amount recognised in the statement of total recognised gains and losses:
Actuarial (loss)/gain (312) 181 (137)
Percentage of the present value of the scheme liabilities (11%) 6% (4%)
Defined contribution scheme
The employer makes contributions to the group personal pension plan for employees under specified circumstances. All contributions are 
paid to individual policies, effected by employees with an independent insurance company, the funds of which are held separately from the
Group’s finances.
Pension cost
The pension cost for the Group was as follows:
2005 2004
£’000 £’000
Defined benefit scheme 75 167
Directors’ personal pension schemes 119 131
Defined contribution scheme 177 268
371 566
Unpaid pension contributions
The unpaid pension contributions at the year end were £0.1 million (2004: £0.1 million).
28. Commitments under operating leases
At 28th April 2005 the Group had the following annual commitments under non-cancellable operating leases:
2005 2004
Land and  Land and 
Other buildings Other buildings
£’000 £’000 £’000 £’000
Operating leases which expire:
Within one year 2 138 43 –
In two to five years 250 18 273 –
After five years 1 389 3 431
253 545 319 431
Notes Forming Part of the Financial Statements continued 29. Related party transactions
During the year the Group provided goods and services in the ordinary course of business to its associated company and its joint venture 
as follows:
(a) Associate – Home Farm
2005 2004
£’000 £’000
Goods 2,943 3,390
Services 1,505 1,596
4,448 4,986
Amounts owed by Home Farm to the Group:
Trading balances 27 54
Dividends 22 706
49 760
(b) Joint venture – eeZee tv
2005 2004
£’000 £’000
Goods 3 –
Services 115 –
Interest 30 –
148 –
Amounts owed by eeZee tv to the Group:
Trading balances 118 –
Loan 1,313 –
Loan interest 30 –
1,461 –
The interests of the directors in the Ordinary shares of the Company are shown in the Directors’ Remuneration Report. 
30. Contingent liabilities
The Company and certain of its subsidiaries have given joint and several guarantees in connection with all monies from time to time owing 
to Bank of Scotland which at 28th April 2005 totalled £21.2 million (2004: £10.6 million). These facilities are secured on all the Group’s fixed
property and short term assets.
Kleeneze Annual Report 2005 | 57 58 | Kleeneze Annual Report 2005
Financial Calendar
Preliminary results Announced 6th July 2005
AGM 28th September 2005
Half year results To be announced December 2005 
Dividend Final 2004/05:
• announced: 6th July 2005
• to be paid: 3rd October 2005
Interim 2005/06:
• to be announced: December 2005
• to be paid: February 2006
Secretary Auditors
C J S Hulland FCA Ernst & Young LLP
1 More London Place
London 
SE1 2AF
Registered Office Registrars
Farepak House Lloyds TSB Registrars
Westmead Drive The Causeway
Westlea Worthing
Swindon BN99 6DA
SN5 7YZ
Bankers Solicitors
Bank of Scotland Macfarlanes
155 Bishopsgate 10 Norwich Street
London London
EC2M 3YB EC4A 1BD
The Royal Bank of Scotland
Castlegate House
Tower Hill
Bristol
BS2 OJA
Advisers
Kleeneze UK Farepak Kleeneze Nederland
www.kleeneze.net www.farepak.co.uk www.kleeneze.net
+44 (0)8703 336688 +44 (0)870 830 6010 0800 0232 517 (the Netherlands only)
Kleeneze UK Limited Farepak Food & Gifts Limited Weena 290
St Ivel Way Westmead Drive 3012 NJ
Bristol Westlea Rotterdam
BS30 8TY Swindon The Netherlands
SN5 7YZ
IWOOT Kitbag eeZee tv
www.iwantoneofthose.com www.kitbag.com www.eezeetv.com
+44 (0)870 241 1066 0845 408 4345 +44 (0)870 837 0000
IWantOneofThose.com Limited +44 (0)115 907 1853 eeZee tv LLP
Unit C11 Kitbag Limited JML House
Parkhall Trading Estate Units 1-4 Mercian Park Regis Road
40 Martell Road Mercian Close Kentish Town
London Manners Industrial Estate London
SE21 8EN Ilkeston NW5 3EG
Derbyshire
DE7 8EF Kleeneze Annual Report 2005 | 59
Notice is hereby given that the Annual General Meeting of Kleeneze plc (“the Company”) will be held at The City Presentation Centre,
4 Chiswell Street, Finsbury Square, London EC1Y 4UP on 28th September 2005 at 12.00 noon for the following purposes: 
Ordinary business
1. To receive and adopt the Report of the Directors and the audited financial statements of the Company for the year ended 28th April 2005
and the Report of the Auditors thereon.
2. To resolve as an Ordinary Resolution that the Directors’ Remuneration Report, as set out on pages 20 to 23 of the annual report for the
financial year ended 28th April 2005, be approved.
3. To declare a final dividend of 2.23 pence per Ordinary share for the financial year ended 28th April 2005.
4. To re-elect Nicholas Gilodi-Johnson, who retires by rotation in accordance with the Articles of Association of the Company, as director 
of the Company.
5. To elect Michael Johns as a director of the Company.
6. To re-appoint Ernst & Young LLP as auditors of the Company and to authorise the directors to determine their remuneration.
Special business
7. To resolve as an Ordinary Resolution that the directors be generally and unconditionally authorised pursuant to Section 80 of the Companies Act
1985 as amended (“the Act”), in substitution for all existing authorities, to exercise all the powers of the Company to allot relevant securities
(within the meaning of Section 80 of the Act) up to an aggregate nominal amount of £739,487 for a period expiring on (unless previously
revoked, varied or renewed) the earlier of 27th December 2006 and the conclusion of the next Annual General Meeting of the Company, but
the Company may make an offer or agreement which would or might require relevant securities to be allotted after this authority expires and
the directors may allot relevant securities in pursuance of such offer or agreement as if this authority had not expired.
8. To resolve as a Special Resolution that, subject to the passing of Resolution 7 above and in place of all existing powers, the directors be
generally empowered pursuant to Section 95 of the Companies Act 1985 as amended (“the Act”) to allot equity securities (within the meaning
of Section 94(2) to 94(3A) of the Act) for cash, pursuant to the authority conferred by Resolution 7 as if Section 89(1) of the Act did not apply
to such allotment, provided that this power shall expire on the earlier of 27th December 2006 and the conclusion of the next Annual General
Meeting of the Company. This power shall be limited to the allotment of equity securities:
(i) in connection with an issue by way of rights (including, without limitation, under a rights issue, open offer or similar arrangement) in 
favour of holders of Ordinary shares in the capital of the Company in proportion (as nearly as may be practicable) to their existing holdings 
of Ordinary shares, but subject to such exclusions or other arrangements as the directors deem necessary or expedient in relation to
fractional entitlements or any legal, regulatory or practical problems under the laws of any territory, or the requirements of any regulatory
body or stock exchange; and
(ii) otherwise than pursuant to paragraph (i) up to an aggregate nominal amount of £120,525,
but the Company may make an offer or agreement which would or might require equity securities to be allotted after this power expires and
the directors may allot equity securities in pursuance of such offer or agreement as if this power had not expired.
This power applies in relation to a sale of shares which is an allotment of equity securities by virtue of Section 94(3A) of the Act as if 
in the first paragraph of this resolution the words “pursuant to the authority conferred by Resolution 7” were omitted.
Notice of Meeting 60 | Kleeneze Annual Report 2005
9. To resolve as a Special Resolution that the name of the Company be and is hereby changed to “European Home Retail plc”.
10. To resolve as a Special Resolution that the Articles of Association of the Company be and are hereby amended, as follows:
(i) in Article 162, by deleting the words “30th April 2003” and in their place inserting the words “28th April 2005”;
(ii) in Article 159, by deleting the words “not exceeding £250,000” and in their place inserting the words “not exceeding £350,000”.
11. To resolve as a Special Resolution that (pursuant to and in accordance with the provisions of Section 164(2) of the Companies Act 1985) 
the Company be and is hereby authorised, for a period of 18 months from the date of this resolution, to purchase all or any of the 499,980
Preference Shares of £1 each in the capital of the Company at a price of £1 per Preference Share (such purchase to be effected upon and
subject to the terms and conditions of a letter agreement, a draft of which is produced to the Meeting and for the purpose of identification is
marked “A” and initialled by the Chairman) and any director of the Company be and is hereby authorised to execute the said letter agreement
for and on behalf of the Company, to fulfil all the obligations of the Company thereunder and to take all such steps as may be necessary or
appropriate in relation thereto.
By order of the Board
C J S Hulland
Secretary
Farepak House
Westmead Drive
Westlea
Swindon SN5 7YZ
10th August 2005
Notes
1. Every member entitled to attend and vote is entitled to appoint one or more proxies to attend and, on a poll, vote instead of the member.
A proxy need not also be a member of the Company.
A proxy form is enclosed with this notice. Instructions for use are shown on the form. To be valid, the form of proxy must be deposited at the 
registered office of the Company at Farepak House, Westmead Drive, Westlea, Swindon SN5 7YZ, not less than 48 hours before the time of 
the Annual General Meeting, together with the power of attorney or other authority (if any) under which it is signed or a notarially certified copy 
of such power or authority. The completion and return of the form of proxy will not, however, preclude you from attending and voting at the
Meeting if you so wish.
2. Members holding Preference Shares are entitled to attend and speak at the Meeting but are not entitled to vote.
3. Contracts of service between the directors and the Company and the draft letter agreement to purchase Preference Shares will be available 
for inspection at the place of the Meeting for at least 15 minutes prior to and during the Meeting.
4. The Company, pursuant to regulation 41 of the Uncertificated Securities Regulations 2001, specifies that only those holders of Ordinary shares
registered in the register of members of the Company 48 hours before the time of the Meeting, or in the event that the Meeting is adjourned,
in such register 48 hours before the time of any adjourned Meeting, shall be entitled to attend or vote at the Meeting in respect of the number 
of shares registered in their name at the relevant time. Changes to entries in the register of members made less than 48 hours before the
time of the Meeting or, in the event that the Meeting is adjourned, in such register less than 48 hours before the time of any adjourned
Meeting, shall be disregarded in determining the rights of any person to attend or vote at the Meeting. Contents
1 Highlights
2 Kleeneze Group at a Glance
4 Chairman’s Statement
7 Chief Executive’s Review
16 Finance Review
18 Corporate Social Responsibility Report
19 Directors
20 Directors’ Remuneration Report
24 Report of the Directors
26 Corporate Governance Statement
28 Statement of Directors’ Responsibilities
29 Independent Auditors’ Report to the
Members of Kleeneze plc
30 Consolidated Profit and Loss Account
31 Consolidated Balance Sheet
32 Company Balance Sheet
33 Consolidated Cash Flow Statement
34 Consolidated Statement of Total
Recognised Gains and Losses
34 Reconciliation of Movement on
Shareholders’ Funds
35 Notes Forming Part of the Financial
Statements
58 Advisers
58 Financial Calendar
59 Notice of Meeting
Sourcing
Catalogue home shopping
Internet retailing 
Television shopping
We have many years’
experience in customer
support, offering a 
24 hour, seven days 
a week service via 
both the internet 
and telephone.
We opened a new
fulfilment centre in Bristol,
increasing operational
efficiencies in 2004. 
The Group recently
entered into a long term
contract with Amtrak. 
Next day delivery 
is offered by all our
businesses as standard.
Kleeneze’s network of
distributors provide free
delivery of product to the
homes of their customers.
Our strategy is to use a 
multi-channel approach to home
retailing to bring a growing
variety of products to our
expanding customer base 
across Europe. 
Our business streams have many
key processes in common –
sourcing, ordering, fulfilment 
and delivery.
Our service is exceptional,
with guaranteed following day
delivery of products.
Sales 
channels
Ordering Fulfilment Delivery
The Group purchases
from the UK and
overseas. Our
experienced buying
teams are successful 
in sourcing many
innovative products. 
Picture on page 18 of Megan Chaplin courtesy
of Richard Hudd/Weston Daily Press.
Designed and produced by Sheppard Day
kleeneze AR Cover  31/8/05  12:22 pm  Page b Home shopping made
easy for everyone...
www.kleenezeplc.co.uk
Kleeneze plc
Farepak House 
Westmead Drive
Westlea 
Swindon SN5 7YZ
Kleeneze plc Annual Report 2005
Kleeneze plc Annual Report 2005
kleeneze AR Cover  31/8/05  12:22 pm  Page a