Annual Report 
and Accounts
2006
A journey of 
clinical excellence 01 Highlights
02 Chairman’s Statement
04 Chief Executive’s Review
06 Therapeutic and Geographic Focus
08 Financial Review
10 Board of Directors
11 Report of the Directors
17 Statement of Directors’ Responsibilities
18 Independent Auditors’ Report
20 Group Profit and Loss Account
21 Group Balance Sheet
22 Company Balance Sheet
23 Group Cash Flow Statement
25 Notes to the Financial Statements
43 Notice of Annual General Meeting
45 Proxy Form
47 Group Information
48 Principal Locations
Premier Research Group plc is a major international
Contract Research Organisation (CRO) with offices
covering the whole of Europe and the United States.
Premier Research is committed to delivering
excellent service to its customers using the highest
scientific standards, intimate local knowledge and
state-of-the-art technology. All Premier Research
employees are committed first and foremost to
fulfilling each customer’s requirements in a timely,
accurate and cost-effective manner.
Report and Accounts 2006  
Contents Premier Research Annual Report and Accounts 2006 01
 Turnover increased 77% to £16.5m 
(2005 :  £9.3m)
 EBITDA up 124% to £4.7m
(2005 : £2.1m)
 Pre-tax profit increased 222% to £2.1m 
(2005 : £0.6m)
 Three highly complementary acquisitions 
completed in the year
 Integration of all acquisitions 
progressing as planned
 More than £50m outstanding proposals 
with customers
Report and Accounts 2006  
Highlights As Chairman of Premier 
Research Group plc I have 
great pleasure in presenting
this year’s results. It has been 
a period of significant progress 
for the Group and we have
achieved excellent results whilst
continuing to build the foundations
for future growth.
02 Premier Research Annual Report and Accounts 2006 It is with pleasure that I present my
report for Premier Research Group’s
first full year of trading since it was
admitted to AIM in December 2004.
I can report that it has been a year of
excellent growth both organically
and by way of acquisition with
turnover up by 77% to £16.5m and
operating profit rising by 143% to
£3.7m. Our declared intent when
going to AIM was to grow the Group
on a buy-and-build strategy which
has been achieved with three
acquisitions in the past twelve
months, all with the common thread
of remaining within our core areas of
competence providing balanced
growth between Europe and the USA
and giving us the ability to quote for
and handle larger contracts. In
addition, we now have a
geographical footprint across Eastern
Europe enabling a wider spread for
our clinical trials.
The key to any acquisition strategy is
the ability to integrate fully those
companies being acquired with a
minimum of disruption and as
speedily as possible. I am delighted
to report that this has been achieved
and is reflected in the results
announced to the market.
I made mention last year of the need
to recognise the major contribution
made by our loyal and supportive
shareholder base, particularly as
regards supporting a strategy
balancing capital growth from an
increasing share price and income
from dividends. Our strategy of buy-
and-build puts demands on our need
to look for both bank and
shareholder support particularly
where there are heavy one-off cash
demands following acquisitions. For
this reason your Board believe it is
premature to declare a dividend this
year, preferring to retain cash within
the business to fund growth and it is
my hope that our shareholders will
recognise and support this strategy
given the increase in share price over
the last 12 months.
The results with which you are now
presented are in line with market
expectation but this achievement
would not have been possible
without the total support, hard work
and commitment of our people and I
am delighted on behalf of both the
Board and our shareholders to pay
wholesome tribute to each and every
one of them.
Last year I concluded my report by
saying that the Group was in good
shape and poised to take advantage
of growth opportunities. The results
have underlined that thinking and I
am confident that 2006 will see us
equipped and ready to build on this
solid foundation continuing to grow
the Group on the same buy-and-
build strategy as we committed to
from the start.
Our vision is simple. It is to build the
Group into a major CRO expanding
into other therapies as we see the
need and opportunity and to ensure
that our shareholders are suitably
rewarded for their loyal support.
Geoffrey Forster
Chairman
Premier Research Annual Report and Accounts 2006 03
The results for the year to 31 January 2006 show that 
the company is in robust health and benefiting from 
the integration of the three businesses acquired 
during the past year.  
Chairman’s Statement  
Geoffrey Forster Premier Research has continued on a positive 
trend throughout the year ending 31 January 2006.  
I am delighted to report 12 months of sustained 
organic growth complemented by three highly 
strategic acquisitions.  
Operational Review
As a leading international
pharmaceutical services group,
our focus has been on sustainable
growth and improving our ability
to win and deliver higher value,
multi-national projects. This 
year has seen us deliver further
on these goals with turnover
increasing by over 75% and
continued strong demand for 
our services from new and 
existing international customers
underlined by an increased
emphasis on larger value contracts.
After a period of sustained organic
growth in 2004, 2005 saw Premier
Research return its focus to the
acquisition trail with three deals
being completed during the year.
The funding was provided by means
of two vendor share placings with
institutions, together with increased
banking facilities. The successful
completion of these transactions
illustrates investors’ support of 
the management’s growth strategy
for the business and our focus 
on providing long-term value 
for shareholders.
Post year end, Premier Research
successfully raised a further £6m
gross through a placing to both 
new and existing investors. This will
be used to fund all outstanding
deferred cash consideration from
recent acquisitions, additional
working capital and, in whole or in
part, further acquisitions. Coincident
with this, the Group consolidated its
banking facilities.
Post Acquisition Integration
The integrations of EPA EuroPharma
and IMFORM into our International
(i.e. non-US) infrastructure and 
of PharmData into our US
infrastructure have largely been
completed. Cost savings that were
identified during the acquisition
processes have been realised and
will continue to enhance our current
year earnings. I am delighted to
confirm that we have maintained
our track record of not losing any
customer from an acquired
company or, indeed, through our
core business. Moreover, since the
acquisitions have been completed,
we have been awarded repeat
business from a number of legacy
customers and we have continued
to be successful in attracting new
customers to the enlarged Group
with the winning of several new
significant contracts on both sides
of the Atlantic.
04 Premier Research Annual Report and Accounts 2006
Chief Executive’s Review  
Dr Simon Yaxley
EP A EuroPharma
Acquired June 2005.
EP A EuroPharma provides a
broad range of outsourced
clinical services to the
biotechnology and
pharmaceutical industries.
The acquisition has provided
Premier Research with a solid
base from which to capitalise
on market opportunities in
Germany, Europe’s second
largest outsourcing market.
The acquisition of EP A
EuroPharma also allowed the
Group to achieve improved
operating margins through
regionalised monitoring of
investigator sites, high value
regulatory affairs and statistical
services plus the integration 
of central overheads.
PharmData
Acquired July 2005.
PharmData specialises in 
clinical data management,
statistical analysis, medical
writing, electronic archiving 
and project management
services. Operating solely 
within the US market,
PharmData provided Premier
Research principally with
increased scope and scale of
data management services.
Due to the specialist nature of
its service offering, PharmData
achieves a higher operating
margin than Premier Research’s
existing data management
operations.The customer base,
which is comprised largely of
US based pharmaceutical and
biotechnology companies, is
entirely complementary to 
that of Premier Research.
This provides considerable
scope for cross-selling
opportunities, particularly
offering clinical services to
PharmData’s customers who
have, to date, secured these 
services elsewhere.
IMFORM
Acquired December 2005
IMFORM, based in Darmstadt
Germany with offices across
Eastern Europe, specialises in
providing outsourced clinical
services, including; project
management, clinical
monitoring, clinical data
management, medical writing
and quality assurance to the
bio/pharma market with
expertise, experience and
technology necessary to
develop drugs from Phase I 
to Phase IV. IMFORM again has
a complementary customer
base with 20 customers, 19 of
whom are new  to Premier
Research. IMFORM provides a
strategic footprint for Premier
Research to access doctors and
patients within the important
Eastern European CRO Market.
Details of the three acquisitions completed during the year are shown below Strengthened Management
As highlighted at the time of our
interim results, the International and
US operational management teams
were strengthened to facilitate the
integration of the acquisitions.
Furthermore, a small number of
management positions with global
responsibility have been created
(information technology, quality
assurance, finance and proposals/
contracts) to drive the integration and
to accelerate the migration of best
practice between business units.The
Group now has a robust structure
capable of handling the increasing
operational requirements associated
with Premier Research’s projected
growth and development in the 
global marketplace.
Our sales teams have also been
strengthened to retain a balanced
focus across the US and International
territories and to continue to drive 
organic growth.
Service Offering & Sales
Demand for our services remains
strong, stemming from our continued
focus on three of the highest growth
areas in drug development (oncology,
central nervous system and anti-
infectives) together with our
underlying expertise in paediatrics,
a specialised area with strong
regulatory drivers.
With over 325 employees in 31
countries our expertise across
consultancy, clinical study delivery,
data management and final medical
reporting, provides us with an
extremely robust business model 
and a powerful reputation amongst
our peers which, together, have given 
us the infrastructure and kudos to
compete for higher value contracts.
Our broad and blue chip customer base
comprises over 120 customers. Many of
these are major pharmaceutical
organisations, although in any one year
no single contract accounts for more
than 10% of revenues.This continues the
trend of providing us with recurring
business,indicating the excellent service
delivery we provide.
Outsourcing Market
With the improved quality, reliability,
safety, efficiency and controls
associated with outsourcing trials,
the outsourcing market continues to
be buoyant and the requirement for
outsourced clinical research services
continues to grow.
As a management team who closely
monitor the market, we are confident
that this trend will continue for the
foreseeable future and, importantly,
Premier Research’s positioning within
this growing market will allow the
Group to exploit the significant
opportunities which arise.
Current Trading
I am delighted to report that we have
had a good start to the new financial
year and the book-to-bill ratio is still
greater than one. By the end of March
2006, £6.5m of contracts were either
signed or under negotiation, with a
mix between new and existing
customers, and more than £50 million
of outstanding proposals are currently 
with customers. The continued 
growth of the order book and the
realisation of the operational benefits
associated with the integration of the
three recent acquisitions provide
management with added confidence
that the Group is on track to deliver
further growth in the current year.
Summary & Outlook
With an aggressive organic 
growth strategy complemented 
by immediately earnings enhancing
acquisitions, Premier Research has 
the skill base, the flexibility and the
competitive positioning to compete
seriously with the larger CROs.
Strong market conditions together
with excellent visibility on revenues 
for 2006, mean we move into the 
new financial year with continued
confidence.
In closing, I would like to thank all our
staff for their commitment and for
embracing this exciting period of
change, our new employees who
joined us from EPA EuroPharma ,
PharmData and IMFORM and to our
shareholders for their continued
support.
Dr Simon Y axley
Chief Executive Officer
Premier Research Annual Report and Accounts 2006 05
We have continued to be successful in attracting
new customers to the enlarged Group with the
winning of several new significant contracts on both
sides of the Atlantic.
Phase 1
Phase 2 42%
Phase 4 12%
Other 13%
Phase 3 15%
18%  (data and statistics associated with Phase I studies)
Sales by Phase Therapeutic and Geographic focus
Since its founding, Premier Research has conducted hundreds
of studies involving many thousands of patients. The Group is
currently focused from a sales perspective on the world’s key
outsourcing markets, namely the USA and Western Europe.
However, we will continue to look at other parts of the world 
to broaden our network of clinical trial investigators.
06 Premier Research Annual Report and Accounts 2006
Central Nervous System
The second most important area of
Premier Research’s therapeutic focus is
in the field of Central Nervous System
(“CNS”) disorders and our experience
covers many different indications,
including Migraine, Epilepsy, Attention
Deficit Hyperactivity Disorder
(“ADHD”), Anxiety, Depression, Pain,
Alzheimer’s disease, Parkinson’s disease
and Sexual Dysfunction.
CNS is one of the key areas of unmet
needs in therapeutic terms, with many
compounds in the research pipeline
and many millions of sufferers. Premier
Research’s expertise is focused on
bringing these compounds through
the clinical development process as
quickly and efficiently as possible,
while maximizing the value of the data
and information produced.
Premier Research is able to assist in
designing the optimum clinical
development plan and implementing
that plan in the most efficient and
cost-effective manner.
Anti-infectives
In addition to the anti-infective
programmes conducted by the
Company over the past few years,
Premier Research currently employs
individuals who have significant
experience in the clinical development
of anti-infective agents for the
treatment of viral, fungal and bacterial
diseases.
Anti-viral experience
 Respiratory Syncytial Virus (RSV)
in neonates and children
 Hepatitis vaccines
 Herpetic infections
Anti-fungal experience
 Management of all Phases of 
the global clinical development 
of topical and systemic 
anti-fungal agents
 Vaginal candidiasis
 Fungal infections of skin
Anti-bacterial experience
 Management of all Phases of global
clinical programmes developing
different classes of anti-bacterial
agents in a broad spectrum of
disease conditions
Oncology
Oncology is one of the most complex
areas of clinical research. Premier
Research is able to underpin the
success of oncology clinical
programmes by creating teams that
have a proven track record in this
therapeutic area.
Premier Research’s Oncology Centre of
Excellence provides significant value
for our customers through our
physicians and extensive network of
investigative sites. Premier Research
has medical oncologists on its staff,
who all have wide-ranging experience
in the clinical development of
oncology products.This includes
involvement as investigators, safety
monitors, programme directors or
simply managing clinical trials.
Premier Research has collectively
conducted a myriad of cancer trials
spanning many indications.We
maintain and continually enhance a
comprehensive database of highly
experienced oncology trialists. Anti-bacterial agents
 Quinolones
 Macrolides
 Penicillins
 Cephalosporins
Disease conditions
 Community and hospital acquired
pneumonia
 Skin and soft tissue infections
 Urinary tract infections
 Upper respiratory tract infections
 Specialised studies in infections due
to multi-resistant bacteria
Premier Research has conducted
paediatric clinical trials over the past
five years in the following:
 ADHD
 Adenomatous Polyposis Coli
 Antiemesis
 Controlled Hypotension in the
Surgical Setting
 Ewing’s Sarcoma
 Influenza Vaccine
 Juvenile Rheumatoid Arthritis
 Rhabdomyosarcoma
 Sedation
 Status Epilepticus
Premier Research Annual Report and Accounts 2006 07
Paediatrics
Premier Research has a rich history of
conducting paediatric clinical trials.
We are proud to report that in October
2003, we were awarded a contract
from the National Institute of Child
Health and Human Development
(NICHD) as the Coordinating Centre 
for the Best Pharmaceuticals for
Children Act (BPCA) for the Paediatric
Off-Patent Drugs Study (PODS)
Centres.This project has been funded
by the National Institute of Child
Health and Human Development, the
National Institutes of Health and 
the Department of Health and Human
Services.
Oncology
CNS 44%
Other 17%
Anti Infectives 6%
33%
Sales by key therapy area 08 Premier Research Annual Report and Accounts 2006
The therapeutic focus continues to deliver visibility for
three years plus
Results
The results for the year under 
review are for the first full year 
of operation since the launch of 
the Group on the AIM Market 
in December 2004.
Following a period of consolidation,
pre- and post-IPO, when the Group
demonstrated significant organic
growth, 2005 saw the Group
complete three acquisitions whilst
continuing to grow the core business
by over 20%, well ahead of the overall
market growth.
The three acquisitions, EPA
EuroPharma, PharmData and
IMFORM were very carefully selected
and, though there were specific
reasons for each acquisition, the
common theme of each was its
ability to match the core business
levels of organic growth.
Turnover for the year ending
31 January 2006 increased 77% from
the prior year actual (2005: £9.3m) it
can be seen that, while acquisitions
contributed to this increase, the
underlying organic growth of the
core business was 22.7%. With
earnings before interest, tax,
depreciation and amortisation
(EBITDA) increasing by 124% to
£4.7m, profit before tax increasing
by 222% to £2.1m and retained
profit up by 166% to £1.4m, the
increased reported sales can be seen
to be contributing to earnings at
enhanced rates when compared to
the prior year.
Exceptional items of £1.2m were the
costs of labour rationalisation
incurred in both the acquired and
core business, yielding ongoing
savings of £1.8m on an annual basis.
Interest
Interest payable during the year was
£454K compared to £724K in the
prior year despite increased bank
lending to part-fund the acquisitions.
The reduction was due to both the
highly competitive banking rates
afforded by the company bankers
and the high level of debt financing
pre-IPO.
Taxation
The Group charge to the profit and
loss account for the year was £698K
with the opening deferred taxation
charge mitigating net cash outflow
to £117K. From February 2006 the
forward tax liability is planned at
31%, being the combination of rates
payable globally.
Balance Sheet
The effect of the acquisition strategy
has transformed the Group Balance
Sheet during the year. With the share
placing in February 2006 and the
cash generated by the business, the
Group has the ability to replicate the
2005 acquisition activity from
currently available resources.
Share Capital & Dividends
There were two share placings during
the review period comprising 3.7m
shares associated with the EPA
EuroPharma transaction and 4.6m
for the acquisition of PharmData.
Additionally, there were 4.4m shares
issued in February 2006 to part-fund
the acquisition of IMFORM.
The opening deficit on distributable
reserves on the Balance Sheet,
associated with historic losses, have
largely been eliminated during the
year due to the profits generated.
Whilst the Board is not
recommending the payment of a
dividend based on the year under
review, this significant change in
circumstances, together with the
outlook for future growth, will
strongly influence the Board’s review
of its dividend policy in 2006
Cashflow & Funding
With relatively low interest payments
and the low level of ongoing capital
expenditure required for the group,
EBITDA will equate to the cash
generated from ongoing operations.
Excluding the one-off exceptionals
mentioned above and the repayment
of excess payments from an IMFORM
client which was part of the headline
purchase price, the 2006 result clearly
demonstrates the validity of this
statement.
Treasury Policy
The Group’s revenues are generated
Financial Review  
Bernard Gallagher in roughly equal proportions in
Europe and the USA. The Group’s
cost base and revenues are matched
in Sterling, Euros and the US Dollar
and so are susceptible only to
exchange rate exposure on the
translation of profits back to
Sterling. The Group therefore does
not have a formal hedging policy
but regularly reviews exchange rates
and the mix of business to monitor
the appropriateness of its policy.
With current potential bank funding
of up to £11.4M, the Group has an
exposure to significant increases in
base rate so has chosen to insure
against interest rate rises in excess
of 2%.
The Group maintains business and
cashflow models that forecast cash
requirements in the short and
medium term and these forecasts
are reviewed regularly by the Board
International Financial Reporting
Standard (“IFRS”)
The Group intends to publish its first
set of financial statements prepared
under IFRS for the year ending 31
January 2008, with comparatives for
the year ending 31 January 2007, in
accordance with the requirements
of AIM. Premier Research Group plc
is expecting the areas of greatest
impact on its financial statements to
be business combinations, the
treatment of goodwill, financial
instruments and employee benefits,
including share based payments.
Given the potential impact to the
Group from reporting under IFRS, an
implementation team has been
formed which is steered by the
Board.
Outlook
The chart shown in the CEO’s
statement, highlighting both the
therapeutic concentration in
oncology and central nervous
system studies and the mix of sales
by phase, clearly demonstrates
cause for the high level of
confidence for 2006 to continue the
trend of growth  in revenues for the
Group at the rates achieved in the
year under review. We enter the 
new financial year with an increased
level of visibility for 2006/7 revenues
and new sales wins achieved in
February and March only add to 
this confidence. The therapeutic
focus continues to deliver visibility
for three years plus and the current
high level of Phase II clinical trial
activity provides opportunities for
pull-through revenues into Phase III
contracts even though these
opportunities are not built into
internal forecasts. The backlog
currently stands at over £40m and
the pipeline of projects awaiting
award with clients is at the
unprecedented level of over £50m.
These factors, together with the
hugely increased geographical
footprint and resultant access to a
larger patient population, give the
Group confidence in achieving
growth significantly in excess of that
projected by the market which is
generally accepted to be in the
range of 10-14% compounded
annually. Additionally the Board will
relentlessly pursue acquisitions
capable of the same levels of
growth, therefore further enhancing
shareholders value.
Bernard Gallagher
Chief Financial Officer
2005 £3.4m
2006
2005
2006
2005
2006
£9.3m
£(0.6)m
£2.1m
Increased turnover 2005 Financial Highlights
Improved EBITDA
£(2.6)m
£0.65m
Premier Research Annual Report and Accounts 2006 09
Improved PBT
+170%
Revenues
£16.5m / +77%
EBITDA
£4.7m / +121%
Profit before tax
£2.1m / +222%
Retained Profit
£1.4m / +166%
£m 2 4 6 8 10 12 14 16 0 Board of 
Directors
1 2 3 4 5
10 Premier Research Annual Report and Accounts 2006
1. Geoffrey Forster aged 64 
(Non-executive Chairman)
Until his retirement in 2001, Geoffrey
headed Lloyds TSB Bank Plc
Corporate Division for Oxfordshire,
dealing with companies both within
and beyond the county and
specialising in technology companies.
He is a non-executive director of
Torex Retail Plc and of London Capital
Group Holdings plc.
2. Dr Simon Yaxley aged 45
(Chief Executive Officer)
Having obtained a doctorate in
neurophysiology from Oxford
University, Simon spent some 17
years in a variety of international
positions within the clinical drug
development area working for
organisations such as Glaxo,The
Clinical Research Foundation and
MDS Pharma Services before co-
founding the Group in 2002.
3. Steve Harris aged 63
(Non-executive Director)
Steve has held a number of sales &
marketing and general management
positions in the pharmaceutical
industry where he spent a total of
almost 40 years before joining
Medeva Plc as a director in 1990. He
left in 1995 and is now chairman of
three companies and a non-executive
director of a further four.
4. Bernard Gallagher aged 54
(Chief Financial Officer)
Bernard is an associate of the
Chartered Institute of Management
Accountants and joined the Group in
2003. He was previously CFO of
Dynex Semiconductors for two and a
half years and, before that, had over
20 years’ experience of financial
management in a variety of
businesses.
5. Dr Guy Patrick aged 46
(Chief Medical Officer)
A consultant nephrologist with a
PhD in medicine, Guy has over 15
years’ clinical experience in both
the UK and Australia. For the past
12 years, he has been involved in
pharmaceutical development and
the clinical research process, most
recently at Omnicare Clinical
Research, before he co-founded
the Group in 2002. Premier Research Annual Report and Accounts 2006 11
A The Business and its management
Principal activities
Premier Research Group is an international pharmaceutical services group, providing clinical trial management and
information capabilities to the international pharmaceutical and biotechnology industries.
Developments affecting the Group during the year and its prospects for the future are evaluated in the Chairman’s
Statement, the Chief Executive’s and Operational Review and the Financial Review on pages 2 to 9.
Research and development
The Group’s research and development programme is concentrated on enhancing software systems used to support its
clinical trials management and information services to the international pharmaceutical and biotechnology industries. It is
not involved in researching the pharmaceutical products themselves.
Fixed assets
In the opinion of the directors, the market value of the group’s properties at 31 January 2006 is not significantly different from
the book value shown in the financial statements.
Employment of disabled persons
Full and fair consideration is given to employment applications from disabled persons having regard to their particular
aptitudes and abilities. So far as is practical, arrangements are made to continue the employment of an individual who
becomes disabled. Disabled employees are given fair consideration for training, career development and promotion.
Employment policies
The development of employee involvement in the Group’s business is kept under regular review and the directors are
committed to encouraging greater involvement by all employees. Formal and informal briefing of employees takes place as
appropriate.
The Group takes all reasonable steps to ensure that employment conditions are equal in all respects for both men and
women.
The Group devotes a realistic amount of resource to employee training and during the year has spent £62,000 (2005 £57,000)
in this regard.
Share Option Plans
The Company operates two share option plans: the Premier Research Group plc Enterprise Management Incentives Share
Option Scheme and the CRC Development Limited Enterprise Management Incentive Scheme (“CRC Scheme”).
Charitable and political donations
During the year, the Group has not made any charitable or political donations.
The directors present their annual report and the audited
financial statements for the year ended 31 January 2006.
Report of the Directors
for the year ended 31 January 2006 12 Premier Research Annual Report and Accounts 2006
B Statutory and other compliance
Dividend
The group profit for the year after tax amounted to £1.399m (2005: £0.525m).
The directors are not recommending payment of any dividend on the ordinary shares.
Substantial interests in shares
Details of substantial holdings in the issued ordinary share capital of the company notified as at 25 April 2006 were:
Number of Shares % of Total
Henley Trustees Limited 5,250,000 9.96%
Simon Yaxley 4,000,000 7.59%
Guy Patrick 4,000,000 7.59%
Newton Investment Management (RBS) 3,935,900 7.47%
F & C Asset Management PLC 3,772,563 7.16%
Legal & General Investment Management 3,435,350 6.52%
Marlborough Fund Managers 3,156,096 5.99%
Cazenove Capital Management 2,834,691 5.38%
Schroder Investment Management 2,681,891 5.09%
Hermes Pension Management 2,560,706 4.86%
Morley Fund Management 1,854,667 3.52%
Jupiter Asset Management 1,707,137 3.24%
Health and Safety
The Group aims to provide and maintain a safe working environment for all its employees and visitors and seeks the
involvement of its employees in improving health and safety throughout its operations. The Board keeps its health and safety
policy under continuous review to take account of changes in legislation, best practice and the working environment.
Environment
Given the nature of its activities, there is limited scope for the Group to have a major impact on environmental matters.
Nevertheless, the directors are mindful of their responsibilities in this regard and will strive to seek opportunities where
improvements may be made: it is likely that these will be concentrated in areas of energy conservation and waste control
Payment of commercial debts
The Group’s policy, in relation to all of its suppliers, is to settle the terms of payment when agreeing the terms of each
transaction provided always that it is satisfied the supplier has provided the goods or services in accordance with the agreed
terms and conditions. The Group does not follow any code or standard on payment practice but it is the Group’s policy, unless
otherwise negotiated, to pay all its suppliers within  30 days of the end of the month in which it received the goods 
or services.
The number of days’ purchases (“creditor days”) outstanding for payment by the Group at the year end was 45 days 
(2005: 43 days).
Authority to allot shares
In accordance with current guidelines, the directors seek authority for a period of five years from the date of the Annual
General Meeting to allot a maximum of 47,310,576, relevant securities. This represents the aggregate current authorised but
unissued ordinary share capital at the date of this report. Further, in order to retain some flexibility, the directors seek power to
allot 5,268,942 equity securities wholly for cash other than on a pre-emptive basis to current shareholders pro-rata to their
existing holdings. This amount represents 10% of the issued ordinary share capital on the balance sheet at the date of this
report. Shareholder approval for these matters was last given at the Extraordinary General Meeting held on 27 February 2006.
Resolutions covering the above matters appear as Items 4 and 5 in the Notice convening the Annual General Meeting on
page 43.
Report of the Directors
for the year ended 31 January 2006 Premier Research Annual Report and Accounts 2006 13
Post Balance Sheet Event
In February 2006 the Company placed 4,444,444 new ordinary shares of 1p each at a price of 135p each.This generated gross
funds before expenses of £6 million which will be used to fund all outstanding deferred cash considerations from recent
acquisitions, additional working capital and, in whole or in part, further acquisitions.
Auditors
Hurst Morrison Thomson LLP have indicated their willingness to continue in office and in accordance with section 385 of the
Companies Act 1985, a resolution for their re-appointment as auditors of the Group will be proposed at the forthcoming
Annual General Meeting.
C Corporate governance
Whilst being AIM listed the Company is not obliged to do so, the directors nevertheless intend to comply with the provisions
of the Combined Code so far as it is practicable and appropriate for a public company of its size and nature.
The directors believe the Board is soundly constituted and, at this stage of the group’s development, it is felt the functions 
of a Nomination committee can be adequately fulfilled by deliberation of the full Board: this will nevertheless be kept 
under review.
With at least six full board meetings spread realistically throughout the year, the Board is well able to exercise control over the
activities of the Group. There is a clear distinction between the role of the non-executive chairman in running the Board and
the chief executive in running the business The latter is obliged to comply with a schedule of matters requiring Board approval
before implementation: this schedule is reviewed by the Board at least annually.
Steve Harris has been designated senior independent director.
The Group maintains appropriate directors’ and officers’ liability insurance.
All directors have access to the advice and services of the company secretary.
The directors are developing relationships with the major shareholders through a series of regular one-to-one meetings.
The Audit committee comprises Geoffrey Forster (chairman) and Steve Harris. The chief financial officer and representatives of
the external auditors attend meetings by invitation as required. The committee meets at least three times each year and
receives reports from the Group’s management and external auditors relating to the annual and interim accounts and the
accounting and internal control systems throughout the group. The committee has direct and unrestricted access to the
external auditors.
The Remuneration committee comprises Steve Harris (chairman) and Geoffrey Forster and meets at least twice each year. The
principal duties of the committee are to review the scale and structure of the remuneration and service contracts for executive
directors and senior management. The committee also administers the Group’s share option schemes.
The chairman of each of the Audit and Remuneration committees will be available to answer questions at the AGM. The
company secretary is secretary to both committees. 14 Premier Research Annual Report and Accounts 2006
Internal controls
The Group has established processes and procedures for identifying, evaluating and managing the significant risks faced by
the Group. The processes have been embedded into the fabric of the Group and have been in place for the period under
review and up to the date of approval of the annual report and financial statements. The processes and procedures will be
regularly reviewed by the Board
The Board is ultimately responsible for the Group’s system of internal controls and for reviewing its effectiveness. The role of
management is to implement board policies on risk and control. The system of internal controls is designed to manage rather
than eliminate the risk of failure of the achievement of business objectives. In pursuing these objectives, internal controls can
only provide reasonable and not absolute assurance against material misstatement or loss.
A process of control, self-assessment and hierarchical reporting has been established which provides for a documented and
auditable trail of accountability.These procedures are relevant across all Group operations: they provide for successive
assurances to be given at increasingly higher levels of management and, finally, to the Board.
The processes used by the Board to review the effectiveness of the system of internal controls include the following:
 annual budgets are prepared and compared with monthly management reporting, which focuses on actual performance
against these budgets;
 management reports and external audit reports on the system of internal controls and any material control weaknesses 
that are identified;
 discussions with management including discussions on the actions taken on problem areas identified by Board 
members or in the external audit reports;
 policies and procedures for such matters as delegation of authorities, capital expenditure and treasury management as 
well as regular updates;
 review of the adequacy of the level of experienced and professional staff throughout the business and the expertise of 
individual staff members so that they are capable of carrying out their individual delegated responsibilities; and 
 review of the external audit work plans.
The Group’s management operates a risk management process, which identifies the key risks facing each business.The process
is based on each business unit producing a risk register which identifies the potential key risks to the individual business unit,
the impact should they occur and the action being taken to sufficiently manage those risks.
Going concern
After making due enquiries, the directors have a reasonable expectation 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 financial statements.
D Directors, their remuneration and their interests
Directors
The names of the current directors together with brief biographical details are shown on page 10
Timothy Carden resigned as a director on 11 October 2005
In accordance with the articles of association, Bernard Gallagher retires by rotation and, being eligible, offers himself for re-
election. He has a service contract which is terminable by the Company on not less than 12 months’ notice.
Report of the Directors
for the year ended 31 January 2006 Premier Research Annual Report and Accounts 2006 15
Directors’ service agreements
All executive directors’ service contracts are subject to 12 months’ notice of termination from the Company and 6 months from
the employee
The non-executive directors have each been re-appointed for a fixed term of 12 months from 1 December 2005: this is
extendible by mutual agreement. All appointees are subject to regular re-appointment by shareholders. Contracts are
terminable on three months’ notice except in the case of gross misconduct or the individual concerned becoming prohibited
by law from acting as a director in which case termination is immediate.
Directors’ contracts:
Executive directors Date of contract Notice period
Simon Yaxley 30 November 2004 12 months
Bernard Gallagher 30 November 2004 12 months
Guy Patrick 30 November 2004 12 months
Non-executive directors Date of letter of appointment Period of appointment
Geoffrey Forster 1 December 2005 12 months
Steve Harris 1 December 2005 12 months
Non-executive directors’ remuneration
The remuneration for non-executive directors is set by the full Board on the recommendation of the executive directors.
Remuneration comprises an annual fee.
Remuneration Policy
It is the Group’s policy to provide for each of its executive directors a remuneration package which is adequate to attract, retain
and motivate individuals of the appropriate calibre, whilst at the same time not paying more than is necessary for this purpose.
Executive directors’ remuneration
The remuneration of the executive directors is determined by the Remuneration committee.
The following comprised the principal elements of executive directors’ remuneration for the period under review:
 basic salary
 annual cash bonus
 benefits, including company car (or car allowance) and vehicle expenses
 pension contribution 16 Premier Research Annual Report and Accounts 2006
Directors’ emoluments
Summary remuneration table
The various elements of remuneration (excluding employer pension contributions) received by each director were as follows:
Year to 31 January Salary & fees Benefits Annual bonus Other Total
2006 2005 2006 2005 2006 2005 2006 2005 2006 2005
Executive
Simon Yaxley 142 166 15 1 150 - - - 307 167
Timothy Carden* 71 127 7 1 30 - 114 - 222 128
Bernard Gallagher 55 55 14 6 110 - - - 179 61
Guy Patrick 117 126 13 1 120 - - - 250 127
Sub Total 385 474 49 9 410 - 114 - 958 483
Non-executive
Geoffrey Forster 30 5 - - - - - - 30 5
Steve Harris 20 2 - - - - - - 20 2
Sub Total 50 7 - - - - - - 50 7
Total 435 481 49 9 410 - 114 - 1008 490
*   period to 11 October 2005
Benefits include provision of company car (or car allowance) and vehicle expenses, all of which are taxable.
The highest paid director was Simon Yaxley.
Pension benefits 
For each of the executive directors, the company contributes each year into a company or personal money purchase pension
plan. During the year, the following total contributions were made:
Simon Yaxley £15,000 Timothy Carden £21,000
Bernard Gallagher £11,000 Guy Patrick £12,000
Directors interests in shares
At 31 Jan 2006 At 1 Feb 2005
Ordinary shares Beneficial Non-beneficial Beneficial Non-Beneficial
Simon Yaxley 4,000,000 - 4,000,000 -
Timothy Carden - - 4,000,000 -
Geoffrey Forster 15,000 - 12,500 -
Bernard Gallagher - - - -
Stephen Harris 37,500 - 37,500 -
Guy Patrick 4,000,000 - 4,000,000 -
During the year none of the directors had an interest in the share capital of any of the company’s subsidiaries. There have
been no changes in the above holdings between 31 January and 25 April 2006 other than those disclosed in note 22 to the
financial statements.
Share options
Bernard Gallagher has an option which was granted on 22 June 2004 under the terms of the CRC Scheme and under which he
is entitled to purchase up to  2,500,000 shares at an exercise price of 1p per share.
Separately Simon Yaxley, and Guy Patrick had an option, which was exerciseable at any time before 31 December 2006, to
purchase a total of 1,833,334 ordinary shares from Henley Trustees Limited for a consideration of approximately 36p per share.
As described in the Shareholders’ Circular dated 3 February 2006, both Simon Yaxley and Guy Patrick exercised their full
entitlement to purchase shares and this transaction was completed on 7 April 2006.
By order of the Board
B Gallagher
Secretary
25 April 2006
Report of the Directors
for the year ended 31 January 2006 Premier Research Annual Report and Accounts 2005 17
Company law in the United Kingdom requires the directors to prepare financial statements for each financial period
which give a true and far view of the state of affairs of the Company and of the Group and of the profit or loss of the
Group for that period. In preparing those financial statements, the directors are required to:
 select suitable accounting policies and then apply them consistently
 make judgements and estimates that are reasonable and prudent
 state whether applicable accounting standards have been followed, subject to any material departures disclosed and 
explained in the financial statements
 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will 
continue in business.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any
time the financial position of the Group and enable them to ensure that the financial statements comply with the
Companies Act 1985. The directors 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.
The directors are responsible for the maintenance and integrity of the Group’s website. Financial information published
on the website is based on legislation in the United Kingdom governing the dissemination of financial statements that
may differ from legislation in other jurisdictions.
Statement of Directors’ Responsibilities 18 Premier Research Annual Report and Accounts 2006
We have audited the Group and Company financial statements (“the financial statements”) of Premier 
Research Group plc for the year ended 31 January 2006 which comprise the consolidated profit and loss account, the
consolidated statement of total recognised gains and losses, the consolidated balance sheet, the Company balance
sheet, the consolidated cash flow statement and the related notes. These financial statements have been prepared under
the accounting policies set out therein.
This report is made solely to the Company’s shareholders, as a body, in accordance with Section 235 of the Companies
Act 1985. Our audit work has been undertaken so that we might state to the Company’s shareholders those matters we
are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we
do not accept or assume responsibility to anyone other than the Company and the Company’s shareholders as a body,
for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The Directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with
applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)
are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and
International Standards on Auditing (UK and Ireland). As auditors, we have agreed that our responsibilities in relation to
the Annual Report will be those set out below.
We report to you our opinion as to whether the financial statements give a true and fair view and are 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 Group 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 regarding Directors’
remuneration and transactions is not disclosed.
We read other information contained in the Annual Report and consider whether it is consistent with the audited
financial statements. This other information comprises only the Highlights, the Chairman’s Statement, Chief Executive’s
Review, Therapeutic and Geographic Focus, the Financial Review and the Directors’ Report. 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 International Standards on Auditing (UK and Ireland) 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. It also includes an assessment of the significant estimates and judgements made by the
Directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the
Company’s circumstances, consistently applied and adequately disclosed.
Independent Auditors’ Report
to the shareholders of Premier Research Group plc Premier Research Annual Report and Accounts 2006 19
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 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.
Opinion
In our opinion:
 the financial statements give a true and fair view of the state of the Group’s and the Company’s affairs as at 31 January 
2006 and of the Group’s profit for the year then ended; and
 the financial statements have been properly prepared in accordance with the Companies Act 1985.
Hurst Morrison Thomson LLP 
Chartered Accountants 5 Fairmile
& Registered Auditors Henley-on-Thames
25 April 2006 Oxfordshire   RG9 2JR
Independent Auditors’ Report
to the shareholders of Premier Research Group plc Group Profit and Loss Account
year ended 31 January 2006
20
Year to Year to
31 Jan 06 31 Jan 05
Note £000 £000
Turnover
Continuing operations 10,957 9,282
Acquisitions 5,496 –
2 16,453 9,282
Administrative expenses 12,731 7,752
Operating profit 3 3,722 1,530
Cost of restructuring the Group 6 (1,171) (154)
2,551 1376
Interest payable and similar charges 7 (454) (724)
Profit on ordinary activities before taxation 2,097 652
Tax on profit on ordinary activities 8 698 127
Retained profit for the financial year 9 1,399 525
Basic earnings per share (pence) 10 3.12 1.31
Diluted earnings per share (pence) 10 3.11 –
The Company has taken advantage of section 230 of the Companies Act 1985 not to publish its own Profit and Loss Account.
Group statement of total recognised gains and losses
Year to Year to
31 Jan 06 31 Jan 05
£000 £000
Profit for the year 1,399 525
Exchange difference on translation of net assets of subsidiary undertakings (117) –
Total gains for the year 1,282 525
Reconciliation of movements in group shareholders’ funds
Year to Year to
31 Jan 06 31 Jan 05
£000 £000
Profit for the year 1,399 525
Exchange difference on translation of net assets of subsidiary undertakings (117) –
New equity share capital subscribed 82 399
Premium on new share capital subscribed (net of expenses) 6,180 6,759
Shares to be issued 1,977 –
Less capitalised from reserves – (199)
Net addition to shareholders’ funds 9,521 7,484
Opening shareholders’ funds/(deficiency) 5,610 (1,874)
Closing shareholders’ funds 15,131 5,610
Premier Research Annual Report and Accounts 2006 Group Balance Sheet
at 31 January 2006
Premier Research Annual Report and Accounts 2006 21
31 Jan 06 31 Jan 05
Note £000 £000
Fixed assets
Intangible assets 11 25,594 6,249
Tangible assets 12 1,268 835
Investments 13 52 52
26,914 7,136
Current assets
Debtors 15 6,825 3,701
Cash at bank 1,391 –
8,216 3,701
Creditors: Amounts falling due within one year 17 10,080 3,274
Net current (liabilities)/assets (1,864) 427
Total assets less current liabilities 25,050 7,563
Creditors: Amounts falling due after more than one year 18 8,864 1,953
Provisions 24 1,055 –
15,131 5,610
Capital and reserves
Called-up equity share capital 25 482 400
Shares to be issued 25 1,977 –
Share premium account 26 12,939 6,759
Other reserves 26 (37) (37)
Profit and loss account 26 (230) (1,512)
Shareholders’ funds 15,131 5,610
The financial statements were approved and authorised for issue by the Board on 25 April 2006 and are signed on their
behalf by:
B. Gallagher
Director Company Balance Sheet
at 31 January 2006
22
31 Jan 06 31 Jan 05
Note £000 £000
Fixed assets
Tangible assets 12 138 22
Investments 13 11,666 5,988
11,804 6,010
Current assets
Debtors 15 14,263 4,921
Creditors: Amounts falling due within one year 17 3,642 1,884
Net current assets 10,621 3,037
Total assets less current liabilities 22,425 9,047
Creditors: Amounts falling due after more than one year 18 6,367 1,292
16,058 7,755
Capital and reserves
Called-up equity share capital 25 482 400
Shares to be issued 25 1,977 –
Share premium account 26 12,939 6,759
Profit and loss account 26 660 596
Shareholders’ funds 16,058 7,755
The financial statements were approved and authorised for issue by the Board on 25 April 2006 and are signed on their behalf
by:
B. Gallagher
Director
Premier Research Annual Report and Accounts 2006 Group Cash Flow Statement
year ended 31 January 2006
Premier Research Annual Report and Accounts 2006 23
Year to Year to
31 Jan 06 31 Jan 05
£000 £000
Net cash inflow/(outflow) from operating activities 2,184 (1,909)
Returns on investments and servicing of finance
Interest paid (447) (720)
Interest element of hire purchase (7) (4)
Net cash outflow from returns on investments and servicing of finance (454) (724)
Taxation (117) 47
Capital expenditure and financial investment
Payments to acquire intangible fixed assets – (128)
Payments to acquire tangible fixed assets (131) (28)
Receipts from sale of fixed assets 15 12
Acquisition of investments – (8)
Net cash outflow for capital expenditure and financial investment (116) (152)
Acquisitions and disposals
Acquisition of shares in group undertakings (9,610) –
Deferred consideration on acquisitions (2,182) –
Net cash acquired with subsidiary 274 –
Net cash outflow from acquisitions and disposals (11,518) –
Cash outflow before financing (10,021) (2,738)
Financing
Issue of equity share capital 82 200
Share premium on issue of equity share capital 6,180 6,759
Repayment of loans (3,073) (7,846)
New bank loans 6,830 2,200
Repayment of bank loans (398) (9)
Capital element of hire purchase (117) (47)
Net cash inflow from financing 9,504 1,257
Decrease in cash (517) (1,481) 24
Reconciliation of operating profit to net cash inflow/(outflow) from operating activities
Year to Year to
31 Jan 06 31 Jan 05
£000 £000
Operating profit 3,722 1,530
Amortisation 775 345
Depreciation 164 222
Loss on disposal of fixed assets 59 63
Increase in debtors (542) (1,577)
Decrease in creditors (823) (2,338)
Re-organisation costs (1,171) (154)
Net cash inflow/(outflow) from operating activities 2,184 (1,909)
Reconciliation of net cash flow to movement in net debt
2006 2005
£000 £000
Decrease in cash in the year (517) (1,481)
Net cash outflow from loans 3,073 7,846
Net cash inflow from bank loans (6,432) (2,191)
Cash outflow in respect of hire purchase 117 47
Change in net debt resulting from cash flows (3,759) 4,221
New finance leases (160) (20)
Debt acquired with acquisitions (2,798) –
Foreign exchange (117) –
Movement in net debt in the year (6,834) 4,201
Net debt at 1 February 2005 (3,144) (7,345)
Net debt at 31 January 2006 (9,978) (3,144)
Analysis of changes in net debt
At Cash Other At
1 Feb 2005 flows changes 31 Jan 2006
£000 £000 £000 £000
Net cash:
Cash in hand and at bank – 1,508 (117) 1,391
Overdrafts (608) (2,025) – (2,633)
(608) (517) (117) (1,242)
Debt:
Debt due within 1 year (552) 2,011 (3,219) (1,760)
Debt due after 1 year (1,914) (5,370) 421 (6,863)
Hire purchase agreements (70) 117 (160) (113)
(2,536) (3,242) (2,958) (8,736)
Net debt (3,144) (3,759) (3,075) (9,978)
Premier Research Annual Report and Accounts 2006
Group Cash Flow Statement
year ended 31 January 2006 Notes to the Financial Statements
Year ended 31 January 2006
Premier Research Annual Report and Accounts 2006 25
1. Accounting policies
The principal Group accounting policies are set out below and have been consistently applied in dealing with items which
are considered material in relation to the Group’s financial statements throughout the current year and the preceding year,
except the Group has adopted the provisions of FRS 17, 21, 22 and 25.The adoption of these financial reporting standards has
had no impact on the previous year’s reported numbers.
Basis of accounting
The financial statements have been prepared under the historical cost convention and in accordance with applicable United
Kingdom accounting standards.
The consolidated financial statements have been prepared in accordance with applicable accounting standards and the
accounting policies have been consistently applied, unless otherwise stated.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and all Group undertakings at
each financial period end. Merger accounting is considered to be the appropriate method of accounting for the acquisition of
Advanced Clinical Sciences Corporation Limited, as this was a group reconstruction.The subsequent acquisitions have been
accounted for under the acquisition method and goodwill on consolidation is capitalised and written off over twenty years
from the year of acquisition.The results of companies acquired or disposed of are included in the profit and loss account after
or up to the date that control passes respectively. As a consolidated profit and loss account is published, a separate profit and
loss account for the parent company is omitted from the group financial statements by virtue of section 230 of the
Companies Act 1985.
Turnover
The turnover represents the amount derived from the provision of services in the ordinary course of business, excluding
value added tax.
Software development
Software development costs are charged against profits in the year in which they are incurred.
Goodwill
Positive purchased goodwill arising on acquisitions is capitalised, classified as an asset on the Balance Sheet and amortised
over its estimated useful life up to a maximum of 20 years.This length of time is presumed to be the maximum useful life of
purchased goodwill because it is difficult to make projections beyond this period. Goodwill is reviewed for impairment at the
end of the first full financial year following each acquisition and subsequently if circumstances emerge that indicate that the
carrying value may not be recoverable.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life
of that asset as follows:
Goodwill – over 20 years
Deferred Consideration
The terms of an acquisition may provide that the value of purchase consideration, which may be payable in cash, shares or
other securities at a future date, depends on uncertain future events such as the future performance of the acquired company.
The amounts recognised in the financial statements are the fair value of the consideration that is reasonably expected to be
paid at the balance sheet date.
Depreciation
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life
of that asset as follows:
Freehold Property – over 50 years straight line
Leasehold Improvements – over the period of the lease
Motor Vehicles – 25% reducing balance
Computers and Equipment –  12.5% - 33% per annum straight line and reducing balance
The carrying values of tangible fixed assets are reviewed for impairment in periods if events or changes in circumstances
indicate the carrying value may not be recoverable. 26
Leasing and hire purchase commitments
Assets held under finance leases and hire purchase contracts are included in the balance sheet as tangible fixed assets and
depreciated similarly to other assets.The interest elements of the rental obligations are charged in the profit and loss account
over the periods of the leases and hire purchase contracts and represent a constant proportion of the balance of capital
repayments outstanding. Rental costs under operating leases are charged against profits as incurred.
Pension costs
Retirement benefits to employees are provided by defined contribution schemes, which are funded by the company and
group undertakings and employees. Payments are made to pension trusts, which are financially separate from the company
and group undertakings.These costs are charged against profits as incurred.
Employee share schemes
The underlying value of options granted to employees is assessed on the basis of information available at the date of the
award. Any difference between the fair market value of the shares at the date of the award and the option price is charged to
the profit and loss account over the performance period, provided that the award is not solely in respect of past
performance.The associated credit is taken to other reserves in accordance with UITF 17 (revised). Provision for National
Insurance payable on options is recognised in accordance with UITF 25.
Deferred taxation
Deferred tax is recognised on all timing differences where the transactions or events that give the company and group
undertakings an obligation to pay more tax in the future, or a right to pay less tax in the future, have occurred by the balance
sheet date. Deferred tax assets are recognised when it is more likely than not that they will be recovered. Deferred tax is
measured on an undiscounted basis using rates of tax that have been enacted or substantively enacted by the balance sheet
date. Provision is made for deferred tax that would arise on remittance of the retained earnings of overseas subsidiaries, only
to the extent that, at the balance sheet date, dividends have been accrued as receivable.
Foreign currencies
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets
and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date.The financial
statements of foreign subsidiaries are translated at the rate of exchange ruling at the balance sheet date.The exchange
differences arising from the retranslation of the opening net investment in group undertakings are taken directly to reserves.
All other exchange differences are dealt with through the profit and loss account.
2. Turnover
Year to 31 Jan 06
Operating
profit/(loss) Net assets/
Turnover before tax (liabilities)
By geographic area £000 £000 £000
UK 6,015 1,092 13,841
Europe 2,627 486 1,324
USA 7,811 519 (34)
16,453 2,097 15,131
Year to 31 Jan 05
Operating
profit/(loss) Net assets/
Turnover before tax (liabilities)
By geographic area £000 £000 £000
UK 3,634 953 5,205
Europe 930 (442) 523
USA 4,609 143 (135)
Other 109 (2) 17
9,282 652 5,610
Premier Research Annual Report and Accounts 2006
Notes to the Financial Statements
Year ended 31 January 2006 Premier Research Annual Report and Accounts 2006 27
3. Operating profit/(loss)
Operating profit/(loss) is stated after charging/(crediting):
Year to Year to
31 Jan 06 31 Jan 05
£000 £000 
Amortisation 775 345
Depreciation of owned fixed assets 143 212
Depreciation of assets held under hire purchase agreements 21 10
Loss on disposal of fixed assets 59 63
Auditors’ remuneration
– as auditors 45 40
– for other services 10 4
Operating lease costs:
Land and buildings 563 345
Plant and equipment 132 39
Net profit on foreign currency translation (134) (65)
The Group has not disclosed the breakdown of operating profit between continuing and acquired activities.This is because
immediately after the acquisition the activities acquired were integrated into the existing operational structure of the Group
such that it is now not possible to separate the operating profit and cash flows of each of the separate parts of the business.
Auditors’ fees
The fees charged by the auditors can be further analysed under the following headings for services rendered:
Year to Year to
31 Jan 06 31 Jan 05
£000 £000 
Audit 45 40
Taxation 10 4
55 44
In addition, £343,000 was paid to Hurst Morrison Thomson LLP in respect of fees relating to the acquisitions made in the year
which have been capitalised as part of the cost of acquisitions.
4. Particulars of employees
The average number of staff employed by the Group during the financial year amounted to:
Year to Year to
31 Jan 06 31 Jan 05
No. No.
Office and management staff 28 28
Technical staff 126 82
Sales and marketing staff 12 10
166 120
The aggregate payroll costs of the above were:
Year to Year to
31 Jan 06 31 Jan 05
£000 £000 
Wages and salaries 5,852 3,666
Social security costs 593 205
6,445 3,871 28
5. Directors’ emoluments
The directors’ aggregate emoluments in respect of qualifying services were:
Year to Year to
31 Jan 06 31 Jan 05
£000 £000 
Emoluments receivable 1,008 490
Emoluments of highest paid director:
Year to Year to
31 Jan 06 31 Jan 05
£000 £000 
Total emoluments (excluding pension contributions) 307 167
The number of directors who accrued benefits under company pension schemes was as follows:
Year to Year to
31 Jan 06 31 Jan 05
No. No.
Money purchase schemes 4 –
Details of the total number of options granted to the directors under the CRC Scheme outstanding as at 31 January 2006 are
as follows:
Exercise price Number of
per Ordinary Ordinary
Date of Share Shares under Exercise
Name grant (£) Option period
Bernard Gallagher 22 June 2004 0.01 2,500,000 22 June 2004
- 21 June 2014
6. Cost of reorganisation and restructuring
Year to Year to
31 Jan 06 31 Jan 05
£000 £000 
Cost of restructuring Company 1,171 154
These costs specifically relate to restructuring costs arising as a result of rationalisation and reorganisation following the
acquisitions in the year.
7. Interest payable and similar charges
Year to Year to
31 Jan 06 31 Jan 05
£000 £000 
Interest payable on bank borrowing 338 15
Finance charges 7 4
Interest and similar charges on other loans 109 705
454 724
Premier Research Annual Report and Accounts 2006
Notes to the Financial Statements
Year ended 31 January 2006 Premier Research Annual Report and Accounts 2006 29
8. Taxation on ordinary activities
Year to Year to
31 Jan 06 31 Jan 05
(a) Analysis of charge in the year £000 £000 
Current tax
UK Corporation tax based on the results for the year at 30% (2005 - 30%) 101 149
Foreign tax
Current tax on income for the year 22 17
Total current tax 123 166
Deferred tax:
Deferred tax current year 404 (39)
Deferred taxation charge in respect of prior years 171 –
Total deferred tax 575 (39)
Tax on profit on ordinary activities 698 127
The tax assessed on the profit/(loss) on ordinary activities for the year is the same as the standard rate of corporation tax in the
UK of 30% (2005 - 30%).
Year to Year to
31 Jan 06 31 Jan 05
(b) Factors affecting current tax charge £000 £000
Profit on ordinary activities before taxation 2,097 652
Profit on ordinary activities by rate of tax 629 195
Expenses not deductible for tax purposes (84) 143
Depreciation in excess of capital allowances 6 42
Profits subject to tax rates below UK standard rate 1 –
Utilisation of losses brought forward (368) (229)
Excess overseas tax suffered 14 17
Other (101) (2)
Losses carried forward 26 –
Total current tax (note 8(a)) 123 166
9. Profit attributable to members of the parent company
The profit dealt with in the accounts of the parent company was £64,000 (2005 - £1,249,000).
10. Earnings per share
Earnings per share for the year ended 31 January 2006 is based on the profit after taxation of £1,399,000 divided by the
weighted average number of shares during the period, 44,823,737 (basic) and 44,975,522 (diluted) 1p ordinary shares.
A reconciliation of the basic and diluted number of shares used for the year ended 31 January 2006 is:
Weighted
average
number of Per share
Earnings of shares amount
£000 000 P
Basic earnings per share
Earnings attributable to ordinary shares 1,399 44,824 3.12
Dilutive effect of securities
Shares to be issued – 134 (0.01)
Options –18 –
Diluted earnings per share 1,399 44,976 3.11 30
11. Intangible fixed assets
Goodwill
Group £000 
Cost
At 1 February 2005 6,884
Additions 20,120
At 31 January 2006 27,004
Amortisation
At 1 February 2005 635
Charge for the year 775
At 31 January 2006 1,410
Net Book Value
At 31 January 2006 25,594
At 31 January 2005 6,249
The goodwill arose from the purchases of Group undertakings.The goodwill arising on each acquisition in the year is shown
in note 14 to these financial statements. Goodwill has been capitalised and will be amortised over 20 years.
Company
The Company has no intangible assets
12. Tangible fixed assets
Freehold Leasehold Motor 
Property Property Vehicles Equipment Total
Group £000 £000 £000 £000 £000
Cost
At 1 February 2005 454 61 66 527 1,108
Foreign exchange –2 – (5) (3)
Additions – 83 260 335 678
Disposals – (63) (22) (55) (140)
At 31 January 2006 454 83 304 802 1,643
Depreciaton
At 1 February 2005  18 61 5 189 273
Foreign exchange – 5 – (1) 4
Charge for the year 11 3 30 120 164
On disposals  – (66) – – (66)
At 31 January 2006 29 3 35 308 375
Net Book Value
At 31 January 2006 425 80 269 494 1,268
At 31 January 2005 436 – 61 338 835
Hire purchase agreements
Included within the net book value of £1,268,000 is £139,000 (2005 - £48,000) relating to assets held under hire purchase
agreements.The depreciation charged to the financial statements in the year in respect of such assets amounted to £21,000
(2005 - £10,000).
Premier Research Annual Report and Accounts 2006
Notes to the Financial Statements
Year ended 31 January 2006 Premier Research Annual Report and Accounts 2006 31
12. Tangible fixed assets continued
Motor Vehicles Equipment Total
Company £000 £000 £000
Cost
At 1 February 2005 23 – 23
Additions 117 20 137
At 31 January 2006 140 20 160
Depreciation
At 1 February 2005 1 – 1
Charge for the year 21 – 21
At 31 January 2006 22 – 22
Net book value
At 31 January 2006 118 20 138
At 31 January 2005 22 – 22
Hire purchase agreements
Included within the net book value of £138,000 is £118,000 (2005 - £22,000) relating to assets held under hire purchase
agreements.The depreciation charged to the financial statements in the year in respect of such assets amounted to £21,000
(2005 - £1,000)
13. Investments
Listed 
investments
Group £000
Cost
At 1 February 2005 52
Additions –
At 31 January 2006 52
Net book value
At 31 January 2006 52
At 31 January 2005 52
The listed investments are stated at cost, which is not materially different to the market value.
Group
companies
Company £000
Cost
At 1 February 2005 5,988
Additions 5,678
At 31 January 2006 11,666
Net book value
At 31 January 2006 11,666
At 31 January 2005 5,988
During the period the Company acquired 100% of the share capital of EPA EuroPharma and 100% of the share capital of PDAS,
Inc. 32
13. Investments continued
Details of the principal investments in which the Company holds 20% or more of the nominal value of any class of share
capital are as follows:
Name of Principal Country of % shares
company activity incorporation held
Advanced Clinical Sciences
Corporation Limited Holding company England and Wales 100%
Premier Research International
Limited Management of clinical trials England and Wales 100%
CRC Development, Inc. Dormant USA 100%
CRC Development GmbH Management of clinical trials Switzerland 100%
Clinical Research
Consultancy Espana SL Management of clinical trials Spain 100%
CRC Development SRL Management of clinical trials Italy 100%
CRC Israel Clinical
Studies Limited Management of clinical trials Israel 100%
Premier Research Germany
GmbH (formerly EP A
EuroPharma Auftragsforschung GmbH) Management of clinical trials Germany 100%
Premier Research Germany Ltd Management of clinical trials England and Wales 100%
PDAS, Inc. Management of clinical trials USA 100%
Imform GmbH Management of clinical trials Germany 100%
Imform (UK) Ltd Management of clinical trials England and Wales 100%
Imform s.r.o. Management of clinical trials Czech Republic 100%
Imform GmbH Management of clinical trials Austria 100%
Imform s.r.o. Management of clinical trials Slovakia 100%
Imform Polska Sp. z.o.o. Management of clinical trials Poland 100%
Imform Romania SRL Management of clinical trials Romania 100%
PRG 2 Ltd Holding Company England and Wales 100%
PRG 3 Ltd Holding Company England and Wales 100%
Premier Research Annual Report and Accounts 2006
Notes to the Financial Statements
Year ended 31 January 2006 Premier Research Annual Report and Accounts 2006 33
14. Acquisitions
Fair value adjustments have been made to the book value of the assets and liabilities in acquired companies to adjust where
applicable, the carrying value of certain assets and liabilities.The fair values in (i) to (iii) below are preliminary and will be
reviewed further based on additional information available during the forthcoming year.
(i) EPA Europharma
On 6 June 2005 the Group acquired the entire share capital of EPA EuroPharma Auftragsforschung GmbH (“EPA”).
Fair value
Book value Revaluation Other to group
£000 £000 £000 £000
Tangible fixed assets 46–– 46
Investments (a) 1,424 (1,424) – –
Debtors (b) 590 (181) – 409
Cash 10 – 10
Trade and other creditors (c)/(d) (2,100) (294) (276) (2,670)
Net assets acquired (30) (1,899) (276) (2,205)
Goodwill 4,201
Consideration 1,996
Satisfied by:
Cash 1,541
Deferred consideration 266
Acquisition costs 189
1,996
Goodwill of £4.2 million arising on the acquisition has been capitalised and is being amortised over 20 years, which is based
on the directors’ estimate of useful economic life.
The material fair value adjustments to the net assets of EPA are as follows;
(a) Write-off of investment in generic drug products.
(b) Write down of debtors primarily relates to the application of the Group’s revenue recognition policy
(c) The revaluation adjustment within trade and other creditors reflects the revised estimate of a tax liability.
(d) The other adjustment within trade and other creditors reflects the accrual for costs on an onerous lease and other
liabilities on a fair value basis at the acquisition balance sheet date. 34
14. Acquisitions continued
Information on EPA Pre-Acquisition results
The last financial statements of EPA were prepared for the year ending 31 December 2004.
The summarised profit and loss account for EPA for the period from 1 January 2005 to 31 May 2005, the period prior to the
effective date of the acquisition, and for the preceding year are as follows:
1 Jan 05 to Year to
31 May 05 31 Dec 04 
£000 £000 
Turnover 441 2,233
Net administrative expenses 268 1,853
Operating profit 173 380
Net interest payable 3–
Profit on ordinary activities before taxation 170 380
Taxation ––
Profit on ordinary activities after taxation 170 380
There are no recognised gains or losses other than the profit on ordinary activities after taxation for either period.
(ii) Pharmdata, Inc.
On 18 July 2005 the Group acquired the trade and assets of Pharmdata, Inc. through its US holding company PDAS, Inc.
Fair value
Book value Revaluation Other to group
£000 £000 £000 £000
Tangible fixed assets 82–– 82
Debtors 559 7 – 566
Cash 9– 9
Trade and other creditors (e) (1,040) (8) (272) (1,320)
Net assets acquired (390) (1) (272) (663)
Goodwill 10,277
Consideration 9,614
Satisfied by:
Cash 7,355
Deferred consideration 1,977
Acquisition costs 282
9,614
Goodwill of £10.3. million arising on the acquisition has been capitalised and is being amortised over 20 years, which is based
on the directors’ estimate of useful economic life.
The material fair value adjustments to the net assets of Pharmdata, Inc. are as follows;
(e) The other adjustment within trade and other creditors reflects the accrual for costs on an onerous lease and other
liabilities on a fair value basis at the acquisition balance sheet date.
Premier Research Annual Report and Accounts 2006
Notes to the Financial Statements
Year ended 31 January 2006 Premier Research Annual Report and Accounts 2006 35
14. Acquisitions continued
Information on Pharmdata, Inc. Pre-Acquisition results
The last financial statements of Pharmdata, Inc. were prepared for the year ending 31 December 2004.
The summarised profit and loss account for Pharmdata, Inc. for the period from 1 January 2005 to 30 June 2005, the period
prior to the effective date of the acquisition, and for the preceding year are as follows:
1 Jan 05 to Year to
30 Jun 05 31 Dec 04 
£000 £000 
Turnover 1,502 6,243
Net administrative expenses 1,241 2,566
Operating profit 261 3,677
Net interest (payable)/receivable (4) 7
Profit on ordinary activities before taxation 257 3,684
Taxation ––
Profit on ordinary activities after taxation 257 3,684
Results for the year to 31 December 2004 reflect a one-off receipt from a customer on the early termination of a significant
contract.
There are no recognised gains or losses other than the profit on ordinary activities after taxation for either period.
(iii) Imform GmbH
On 16 December 2005 the Group acquired the entire share capital of Imform GmbH 
Fair value
Book value Revaluation Other to Group
£000 £000 £000 £000
Tangible fixed assets (f) 328 (75) – 253
Debtors (g) 3,262 (1,080) – 2,182
Cash 255 – – 255
Trade and other creditors (h) (5,211) – (962) (6,173)
Net assets acquired (1,366) (1,155) (962) (3,483)
Goodwill 5,642
Consideration 2,159
Satisfied by:
Cash 6
Deferred consideration 1,916
Acquisition costs 237
2,159
Goodwill of £5.6 million arising on the acquisition has been capitalised and is being amortised over 20 years, which is based
on the directors’ estimate of useful economic life.
The material fair value adjustments to the net assets of Imform GmbH are as follows;
(f) Write-off of tangible fixed assets including internally developed software which would not have been capitalised under
the Group’s accounting policies.
(g) Write down of accrued income back to profit and loss account where it would not have been capitalised under the
Group’s accounting policies.
(h) Trade and other creditors have been adjusted for payments contingent on the successful completion of the acquisition
£428,000 and an onerous lease £534,000. 36
14. Acquisitions continued
Information on Imform Pre-Acquisition results
The last financial statements of Imform GmbH were prepared for the year ending 31 December 2004.
The summarised profit and loss account for Imform GmbH for the period from 1 January 2005 to 30 September 2005, the
period prior to the effective date of the acquisition, and for the preceding year are as follows:
1 Jan to Year to
30 Sep 05 31 Dec 04
£000 £000
Turnover 5,545 7,140
Net administrative expenses 5,729 7,531
Operating loss (184) (391)
Net interest payable (52) (37)
Loss on ordinary activities before taxation (236) (428)
Taxation ––
Loss on ordinary activities after taxation (236) (428)
There are no recognised gains or losses other than the profit on ordinary activities after taxation for either period.
15. Debtors
Group Company
2006 2005 2006 2005 
£000 £000 £000 £000 
Trade debtors 4,571 1,798 – –
Amounts owed by group undertakings – – 14,182 4,515
Other debtors 466 23 – –
Deferred taxation (Note 16) 274 849 – –
Prepayments and accrued income 1,514 1,031 81 406
6,825 3,701 14,263 4,921
16. Deferred taxation
The movement in the deferred taxation asset during the year was:
Group Company
2006 2005 2006 2005
£000 £000 £000 £000 
At 1 February 849 810 – –
Current year (charge)/credit (404) 39 – –
Adjustment in respect of prior years (171) – – –
At 31 January 274 849 – –
Premier Research Annual Report and Accounts 2006
Notes to the Financial Statements
Year ended 31 January 2006 Premier Research Annual Report and Accounts 2006 37
17. Creditors: Amounts falling due within one year
Group Company
2006 2005 2006 2005 
£000 £000 £000 £000 
Loans – 275 – 275
Bank loans and overdrafts 4,393 885 2,144 1,205
Trade creditors 2,278 1,073 262 248
Amounts owed to group undertakings – – 981 –
Hire purchase agreements 28 31 28 4
Corporation tax 504 224 – –
Other taxes and social security 297 171 ––
Other creditors 379 104 149 148
Accruals and deferred income 2,201 511 78 4
10,080 3,274 3,642 1,884
The following liabilities disclosed under creditors falling due within one year are secured by the Company:
Group Company
2006 2005 2006 2005 
£000 £000 £000 £000 
Bank loans and overdrafts 4,393 277 2,144 224
The bank loans and overdrafts are secured on certain assets of the Company and certain assets of Premier Research
International Limited and Advanced Clinical Sciences Corporation Limited both being group companies.The bank loans are
also secured by keyman insurance policies in respect of certain directors.
18. Creditors: Amounts falling due after more than one year
Group Company
2006 2005 2006 2005 
£000 £000 £000 £000 
Bank loans 6,863 1,914 6,282 1,276
Deferred consideration 1,916 – – –
Hire purchase agreements 85 39 85 16
8,864 1,953 6,367 1,292
The following liabilities disclosed under creditors falling due after more than one year are secured by the Company:
Group Company
2006 2005 2006 2005 
£000 £000 £000 £000 
Bank loans 6,863 1,914 6,281 1,276
The bank loans are secured on certain assets of the Company and certain assets of Premier Research International Limited and
Advanced Clinical Sciences Corporation Limited both being group companies.The bank loans are also secured by keyman
insurance policies in respect of certain directors. 38
19. Commitments under hire purchase agreements
Future commitments under hire purchase agreements are as follows:
Group Company
2006 2005 2006 2005 
£000 £000 £000 £000 
Amounts payable within 1 year 28 31 28 4
Amounts payable between 2 to 5 years 85 39 85 16
113 70 113 20
20. Pensions
The Company and Group undertakings operate 7 defined contribution schemes for its employees, to which the Company or
Group undertakings and employees contribute. Payments are made to pension trusts, which are financially separate from the
Company and Group undertakings.These costs are charged against profits as incurred. As at 31 January 2006 £ nil (31
January 2005: £nil) was owed to the pension trusts in respect of contributions amounts due but unpaid.
21. Commitments under operating leases
At 31 January 2006 the Group had annual commitments under non-cancellable operating leases as set out below.
2006 2005
Land and Other Land and Other
buildings items buildings items
Group £000 £000 £000 £000
Operating leases which expire:
Within 1 year 127 30 ––
Within 2 to 5 years 568 116 345 24
After 5 years 300 – ––
995 146 345 24
22. Related party transactions
On 7 April 2006, Simon Yaxley and Guy Patrick sold a total of 1,833,334 ordinary shares of 1p each at a price of 135p per share
and on the same day exercised an option to purchase a total of 1,833,334 ordinary shares of 1p each from Henley Trustees
Limited (a major shareholder in the Company) for a price of 36p per share.
On 14 October 2005,Timothy Carden sold a total of 4,916,666 ordinary shares of 1p each at a price of 95p per share and on
the same day exercised an option to purchase 916,666 ordinary shares of 1p each from Henley Trustees Limited (a major
shareholder in the Company) at a price of 36p per share.
There were no other transactions with related parties such as are required to be disclosed under Financial Reporting
Standard 8.
23. Financial instruments
The Group purchases financial instruments in order to finance its operations and to manage the interest rate and currency
risks that arise from those operations and from its sources of finance. In addition, various balances, for example trade debtors,
trade creditors, accruals and prepayments arise directly from the Group’s operations.
Short-term debtors and creditors have been excluded from all the following disclosures, other than currency risk disclosure.
The main risks arising from the Group’s financial instruments are interest rate risk and foreign currency risk.The Board reviews
and agrees policies for managing these risks and they are summarised below.
Interest rate risk
The interest rate exposure of the financial liabilities of the Group was:
31 Jan 06
Fixed Floating
interest rate interest rate Total
£000 £000 £000
Sterling:
Bank overdraft – 2,633 2,633
Bank loan – 1,886 1,886
Finance leases 113 – 113
US dollars – 4,999 4,999
Euro – 1,738 1,738
113 11,256 11,369
Premier Research Annual Report and Accounts 2006
Notes to the Financial Statements
Year ended 31 January 2006 Premier Research Annual Report and Accounts 2006 39
23. Financial instruments continued
31 Jan 2005
Fixed Floating
interest rate interest rate Total
£000 £000 £000
Sterling:
Bank overdraft – 608 608
Bank loan – 2,191 2,191
Finance leases 70 – 70
70 2,799 2,869
Sterling bank loans bear interest at a range of rates between 1.5% and 1.75% above LIBOR.
The bank overdraft facility bears interest at a rate of 1.5% above the Lloyds TSB plc base rate.
The weighted average interest rate on finance leases for the period was 5.3% and the weighted average period which finance
leases are over is 3 years.
In order to manage its exposure to overseas floating interest rate risk the interest charged on the US dollar and Euro loans are
capped and collared as follows;
Euro loan has a cap of 4% and a floor of 2.15%, maturing on 30 April 2008.
USD loan has a cap of 6% and a floor of 3.85%, maturing on 30 April 2008.
Liquidity risk
The Group’s policy is to maintain a mixture of short and medium term bank facilities to meet foreseeable peak borrowing
requirements. Short term flexibility is achieved by overdraft facilities.
The facilities are subject to review as follows:
Overdraft - £2.8 million - next annual review due on 30 November 2006.
Five year - term loans: £1.5 million,A2.5 million and US$9.0 million - next review due on 30 November 2006.
Ten year - term loan £0.7 million - next review due on 30 November 2006.
In addition to the above, the Group’s provisions of £534,000 for an onerous lease meet the definition of financial liabilities.
These financial liabilities are considered to be floating rate financial liabilities.This is because in establishing the provisions, the
cash flows have been discounted and the discount rate is re-appraised at each half yearly reporting date to ensure that it
reflects current market assessments of the time value of money and the risks specific to the liability.
The maturity profile of the Group’s financial liabilities at 31 January 2006 was as follows:
Loans Finance Group
leases total
£000 £000 £000
Within one year 1,760 28 1,788
Between one year and two years 1,944 37 1,981
Between two years and five years 4,600 48 4,648
After five years 319 – 319
8,623 113 8,736
The maturity profile of the Group’s financial liabilities at 31 January 2005 was as follows:
Loans Finance Group
leases total
£000 £000 £000
Within one year 277 31 308
Between one year and two years 392 27 419
Between two years and five years 1,130 12 1,142
After five years 392 – 392
2,191 70 2,261 40
23. Financial instruments continued
Currency risk
The Group does not have a formal hedging policy but regularly reviews exchange rates and the mix of business to monitor the
appropriateness of this policy.
Fair value of financial instruments
The fair value of the Group’s financial assets and liabilities are as follows:
At 31 Jan 2006
Book Fair
value value
£000 £000
Primary financial instruments held or issued to finance the Group operations
Cash at bank and in hand 1,391 1,391
Bank overdraft (2,633) (2,633)
Current portion of long-term borrowing (1,760) (1,760)
Long-term borrowing (6,863) (6,863)
Finance leases (113) (113)
Financial instruments held to manage the interest rate profile
Interest due and cap fixed rate period – (165)
There was no material difference between the book value and fair value of financial assets and liabilities at 31 January 2005.
24. Provisions
An analysis of movements on provisions for the Group is as follows;
Restructuring Group total
£000 £000
At 1 February 2005 ––
On acquisition 534 534
Charged to the profit and loss account 521 521
At 31 January 2006 1,055 1,055
Restructuring
Following the acquisition of Imform GmbH the Group started an exercise that centralised certain of its activities at key locations,
staff were informed and plans were put into place by 31 January 2006, accordingly a provision of £521,000 was created to cover
the costs of this programme.
As part of the fair value exercise on the Imform acquisition provision was made for an onerous lease contract, the Group being
uncertain as to its right to occupy a property being in breach of local planning regulations.
25. Share capital
2006 2005 
Authorised share capital: £000 £000 
100,000,000 Ordinary shares of £0.01 each 1,000 1,000
2006 2005
Number of Number of
Allotted, called up and fully paid shares £000 shares £000 
At the beginning of the period
Ordinary shares of £0.01 each 40,000,000 400 40,000,000 400
Issue of shares in respect of acquisition 8,244,980 82 ––
At 31 January: Shares attributable to members 48,244,980 482 40,000,000 400
Premier Research Annual Report and Accounts 2006
Notes to the Financial Statements
Year ended 31 January 2006 Premier Research Annual Report and Accounts 2006 41
25. Share capital continued
Ordinary shares were allotted during the year for the following purposes:
(a) In June 2005, 3,666,667 ordinary shares were allotted in connection with the acquisition of EPA EuroPharma
Auftrogsturschung GmbH at 75p per share giving rise to total proceeds of £2,750,000 of which £2,713,334 has been
credited to the share premium account.
(b) In July 2005, 4,578,313 ordinary shares were allotted in connection with the acquisition of the trade and assets of
Pharmdata, Inc. at 83p per share giving rise to total proceeds of £3,799,999 of which £3,754,216 has been credited to the
share premium account.
Share Options
During the year, a total of 580,000 options were issued under the terms of the Premier Research Group plc Enterprise
Management Incentives Share Option Scheme at an exercise price of 95p per share and all these options remained
outstanding at 31 January 2006.The options are normally exercisable during the period from 21 December 2008 until
20 December 2015.
Share to be issued
Shares to be issued represent the current estimate of the fair value of the deferred consideration in ordinary shares due on
the PharmData acquisition.
26. Reserves
Share Profit 
premium Merger and loss 
account reserve account
Group £000 £000 £000
At 1 February 2005 6,759 (37) (1,512)
Retained profit for the year – – 1,399
Other movements
New equity share capital subscribed 6,180 – –
Exchange difference on translation of net assets of subsidiary undertakings – – (117)
At 31 January 2006 12,939 (37) (230)
Share Profit 
premium and loss 
account account
Company £000 £000
At 1 February 2005 6,759 596
Retained profit for the year –64
Other movements
New equity share capital subscribed 6,180 –
At 31 January 2006 12,939 660
27. Contingencies
The directors have confirmed that there were no contingent liabilities which should be disclosed at 31 January 2006.
28. Capital commitments
Amounts contracted for but not provided in the financial statements amounted to £nil (2005 - £17,000). 42
29. Post Balance Sheet Event
In February 2006 the Company placed 4,444,444 new ordinary 1p shares at a price of 135p each.This generated gross funds
before expenses of issue of £6 million which will be used to fund all outstanding deferred cash considerations from recent
acquisitions, additional working capital, and in whole or in part, further acquisitions.
Premier Research Annual Report and Accounts 2006 Notice of Annual General Meeting
Premier Research Annual Report and Accounts 2006 43
NOTICE IS HEREBY GIVEN that the Annual General Meeting of Premier Research Group plc will be held at the Coppid
Beech Hotel, John Nike Way, Bracknell, Berkshire on Wednesday 14th June 2006 at 10.30 am for the following
purposes:
1. To receive the report of the directors and the audited financial statements for the year ended 31 January 2006.
2. To re-appoint Bernard Gallagher as a director of the Company.
3. To re-appoint Hurst Morrison Thomson LLP as the Company’s auditors and to authorise the directors to determine their
remuneration.
Special Business
4 To consider and, if thought fit, to pass the following resolution which will be proposed as an Ordinary Resolution:
THAT the directors of the Company be and are hereby generally and unconditionally authorised, pursuant to and in
accordance with Section 80 of the Companies Act 1985 (“the Act”), for a period expiring at the end of five years from the date
on which this Resolution is passed, to allot relevant securities (within the meaning of section 80(2) of the Act) up to an
aggregate amount of £473,105.76, provided that the Company may before such expiry make an offer or agreement which
would or might require relevant securities to be allotted after such expiry and the directors of the Company may allot
relevant securities in pursuance of any such offer or agreement as if the authority conferred hereby had not expired and
provided further that the authority hereby conferred shall be in substitution for, and to the exclusion of, the existing authority
conferred upon the directors on 27 February 2006.
5 To consider and, if thought fit, to pass the following resolution which will be proposed as a Special Resolution:
THAT the directors of the Company be and hereby are empowered pursuant to section 95 of the Companies Act 1985 (“the
Act”) to allot equity securities (within the meaning of section 94 of the Act) pursuant to the authority conferred on them
under section 80 of the Act by Resolution 6 above as if section 89(1) of the Act did not apply under any such allotment
provided that this power shall be limited:
(a) to the allotment of equity securities in connection with any rights issue in favour of the holders of ordinary shares of 1p
each in the Company where the equity securities respectively attributable to the interests of all such holders of shares
are proportionate (as nearly as may be) to the respective numbers of shares held by them, provided that the directors of
the Company may make such arrangements in respect of overseas holders of shares as they consider necessary or
convenient; and
(b) to the allotment (otherwise than pursuant to sub-paragraph (a) above) of equity securities up to an aggregate nominal
amount of £52,689.42.
and this authority shall expire at the at the end of five years from the date on which this resolution is passed, provided that
the Company may before such expiry make offers or agreements which would or might require equity securities to be
allotted after such expiry and the directors of the Company may allot equity securities in pursuance of such offers or
agreements as if the power conferred hereby had not expired and provided further that the authority hereby conferred shall
be in substitution for, and to the exclusion of, the existing authority conferred on the directors on 27 February 2006.
30 Wellington Business Park By order of the Board
Duke’s Ride B Gallagher
Crowthorne Secretary
Berkshire
RG45 6LS 23 May 2006 Notice of Annual General Meeting
44
Notes:
1. A member entitled to attend and vote at the meeting may appoint one or more proxies to attend and, on a poll, to vote
instead of him. A proxy need not be a member of the Company. A form of proxy is attached; the form must be lodged at
the office of the Company’s registrars not less than 48 hours before the time appointed for the holding of the meeting.
2. The following documents will be available for inspection at the Company’s registered office during normal business
hours on any weekday (Saturdays and Sundays excluded) from the date of this Notice until the date of the meeting and
at the place of the meeting from 10.15 am on 14 June until its conclusion: (a) the register of directors’ interests in the
capital of the Company, (b) copies of the directors’ contracts of service.
3. Under Regulation 41 of the Uncertified Securities Regulations 2001, only shareholders included in the register of
members of the Company at 10.30 am on 12 June 2006 (or, in the event of an adjournment, 10.30 on the date which is
48 hours before the time of the adjourned meeting) are entitled to attend or vote at the meeting in respect of the shares
registered in theior names at that time. Changes to entries on the register after the relevant deadline shall be
disregarded in deternmining the rights of any person to attend or vote at the meeting (or adjourned meeting).
Premier Research Annual Report and Accounts 2006 Proxy Form
I/We, being (a) holder(s) of ordinary shares in Premier Research Group plc, hereby appoint the Chairman of the meeting
(or)_____________________________________________________________________________________________________
of ______________________________________________________________________________________________________
as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held on
Wednesday 14 June 2006 and at any adjournment thereof and in particular, in respect of the undermentioned resolutions
referred to in the Notice of the Annual General Meeting dated 23 May 2006, to vote:
RESOLUTION FOR AGAINST
ORDINARY BUSINESS
1 Receive the report and accounts
2 Re-appoint Bernard Gallagher
3 Auditors’ re-appointment and remuneration
SPECIAL BUSINESS
4 Authority to allot relevant securities pursuant to section 80 Companies Act 1985
5 Disapplication of section 89(1) Companies Act 1985
FULL NAMES (in block letters) _______________________________________________________________________________
ADDRESS________________________________________________________________________________________________
_______________________________________________________________________________________________________
____________________________________________________________ POSTCODE ________________________________
SIGNATURE __________________________________________________ DATE_____________________________________
NOTES:
1. A proxy need not be a member of the Company.
2. Please indicate with and ‘X’ in the appropriate boxes above how you wish your votes to be cast. Unless otherwise
instructed the proxy may vote or abstain from voting as he thinks fit.
3. To be valid this proxy form must be deposited with or despatched to Capita Registrars (Proxies), P .O.Box 25, Beckenham,
Kent BR3 4BR, so as to be received by them not less than 48 hours before the time fixed for the meeting.
4. The proxy form must be signed by the member or the member’s attorney duly authorised in writing or, if the member is a
corporation, it must be either under its common seal or signed on its behalf by an attorney or officer duly authorized
whose capacity should be stated.
5. In the case of joint members the vote of the senior joint member who signs a proxy form will be accepted to the exclusion
of others, seniority being determined by the order of names in the register.
6. If you wish to appoint someone other than the Chairman as your proxy, delete “the Chairman of the meeting (or)”and
insert the name and address of your proxy in the spaces provided.
7. Completion and return of the proxy form will not preclude you from attending and voting in person at the meeting
should you subsequently decide to do so.
8. Any alteration made to this proxy form should be initialled.
✃ BUSINESS REPLY SERVICE
Licence No. MB122
1 1
Capita Registrars
PO Box 25
Beckenham
Kent
BR3 4BR
Third Fold and tuck in
Second Fold
First Fold Officers and Advisors
Group Information
Premier Research Annual Report and Accounts 2006 47
Company Secretary Bernard Gallagher
Registered Office 30 Wellington Business Park
Dukes Ride, Crowthorne
Berkshire  RG45 6LS
Registered Number 4671020
Nominated Advisor & Broker Evolution Securities Limited
100 Wood Street, London EC2V 7AN
Solicitors Osborne Clarke
Apex Plaza, Forbury Road
Reading, Berkshire RG1 1AX
Auditors Hurst Morrison Thomson LLP
5 Fairmile, Henley-on-Thames
Oxfordshire RG9 2JR
Principal Bankers Lloyds TSB Bank Plc
140 Wharfedale Road, Winnersh Triangle,
Berkshire RG41 5RB
Registrars Capita Registrars
The Registry, 34 Beckenham Road
Beckenham, Kent BR3 4TU
Group Information 48 Premier Research Annual Report and Accounts 2006
Premier Research
Principal Locations
International
30 Wellington Business Park
Dukes Ride 
Crowthorne 
RG45 6LS 
United Kingdom
T el: +44 (0)1344 752375
Fax: +44 (0)1344 752374
13 Milbanke Court 
Milbanke Way 
Bracknell 
RG12 1RP 
United Kingdom
T el: +44 (0)1344 458300 
Fax: +44 (0)1344 458314
Birkenweg 14
D-64295 Darmstadt
Germany
T el: +49 (0) 6151 8280-0
Fax: +49 (0) 6151 8280-10/-110
United States  
Center Square West
1500 Market Street
Suite 3500, 9th Floor
Philadelphia, PA 19102
USA
T el: +1 (215) 282 5500 
Fax: +1 (215) 282 5528
6333 Greenwich Drive 
Suite 260 
San Diego, CA 92122 
USA
T el: +1 (858) 450 0257 
Fax: +1 (858) 450 9716
2440 Sandy Plains Road
Marietta, GA 30066
USA
T el: +1 (770) 579 8812
Fax: +1 (770) 579 9511 Printed on Zanders Mega Matt using
50% recycled de-inked fibre and 50%
totally chlorine free pulp
Design Mediasterling 020 7749 2000
Print by Sterling Financial Print
Photography by Richard Olivier Premier Research Group plc
30 Wellington Business Park
Dukes Ride, Crowthorne
Berkshire RG45 6LS
Annual Report 
and Accounts
2006