Annual Report & Financial Statements 2006
Growth
Expertise
Service
Innovation
Range
Multi-channel
YOUR PICTURES. OUR PASSION.
www.jessops.com As at 30 November 2006, we have a
total of 315 stores located across the
British Isles. These stores fall into 4 main
formats: 286 High Street locations,
4 World Camera Centres, 16 out of
town stores and 9 stores in regional
shopping centres.
Region Number of
stores
1 Scotland 35
2 North 60
3 Northern Ireland 8
4 Wales 9
5 Midlands 80
6 South West 28
7 East 16
8 London 39
9 South and South East 37
10 Republic of Ireland 1
11 Channel Islands 2
1
2
3
4
6
9
10
11
7
5
8 ABERDEEN
31-33 Market Street 
10 Bridge St 
ABERYSTWYTH
6 Sgwar Owain Glyndwr
23 Chalybeate St
ABINGDON
13a Market Place 
ALTRINCHAM
32 Stamford New Road  
ANDOVER
Unit 40 Chantry Way  
ARBROATH
214 High St 
ASHFORD
24 County Square  
AYLESBURY
10 High Street  Aylesbury 
AYR
51 High Street  
BALLYMENA
35 Tower Centre
Wellington Street 
BANBURY
Unit 3 Castle Centre  
BANCHORY
74 High St
BANGOR
Unit 2 Bloomfield Shopping
Centre South Circular Road
BARNSTAPLE
86 High Street 
BARROW IN FURNESS
32 Portland Walk  
BASILDON
Unit 15 East Square  
BASINGSTOKE
3 Castle Square  
2-3 Market Place
BATH
Unit 8 Shires Yard 
Milsom Street
49 Southgate
BEDFORD
76 High Street
1 The Arcade 
BELFAST
7 Arthur Square
19-21 High Street
BEVERLEY
57 Toll Gavel
BICESTER
28 Sheep St
BIRMINGHAM
SU521 New Bullring
Colmore Row
35 Colmore
Unit 3 55 Temple Row 
BLACKBURN
26  King William Street 
BLACKPOOL
59-61Abingdon Street
BLUEWATER
Lower Thames Walk  
Greenhithe 
BOLTON
34 Newport Street  
Bandstand Middlebrook
Retail Park The Linkway 
BOSTON
Unit 2 6-10 Strait Bargate
High Street
BOURNEMOUTH
20 Gervis Place
Unit W5 Showrooms 
West Castle Lane 
BRACKNELL
Unit G4 Princes Square
Shopping Centre
BRADFORD
6 Bank Street
BRADFORD
44 Kirkgate
BRENT CROSS
Unit G1 Brent Cross Retail
Shopping Park Tilling Road
BRIGHTON
78 London Road
25 Queens Road
154 Western Road  
BRISTOL
Unit 001a The Mall 
Cribbs Causeway
Rupert Street
8 St. Augustines Parade 
98 Whiteladies Road 
BROMLEY
4/5 Market Square
203 The Glades  Bromley 
BURTON-UPON-TRENT
30 New Street 
Octagon Centre
BURY
9 Union Street 
(In the Millgate Shopping
Centre)
BURY ST EDMUNDS
6 The Traverse
BUXTON
58 Spring Gardens
CAMBERLEY
10 Grace Reynolds Walk 
CAMBRIDGE
71 Bridge Street  
38-39 Green Street
CANNOCK
3 Market Hall Precinct
Market Hall Street 
CANTERBURY
7 Mercery  Lane  
126 Sturry Road
CARDIFF
Unit 17-21 Churchill House
Churchill Way
9 Duke Street
CARLISLE
9 Devonshire Street 
14/16 English Street  
CARMARTHEN
21 Red Street
CHELMSFORD
97-98 High Street 
CHELTENHAM
110-112 High Street  
257 High Street
CHESTER
Unit B & C 
Grosvenor Street
31 Werburgh Street 
CHESTERFIELD
5d Market Place
CHICHESTER
61 East Street
CIRENCESTER
6 Market Place
CLAPHAM JUNCTION
85 St Johns Street 
COLCHESTER
100 High Street
COLLIERS WOOD
Unit 14 Tandem Centre
Retail Park
COVENTRY
21A Cross Cheaping  
32 Hertford Street 
CRAWLEY
3 The Martlets
CREWE
Unit 8 Victoria Centre 
CROYDON
6 High Street
138/140 North End
1 Trafalgar Way Purley Way  
DARLINGTON
9 High Row
DERBY
1 The Spot  Derby
DONCASTER
3/4 Baxergate
12 Cleveland Street 
DUBLIN
111 Grafton Street
DUMFRIES
73 High Street
DUNDEE
22 Reform St
39 Reform Street
DUNFERMLINE
2-4 Bonnar St
DURHAM
19 High Street
EAST KILBRIDE
8 Princes Mall
EASTBOURNE
Unit 36 Arndale Centre  
EDINBURGH
45 The Gyle Avenue 
South Gyle Broadway 
11 South St David Street
27 Shandwick Place
ELGIN
46 High St 
ELLON
40 Market St
ENFIELD
18 Church Street
EPSOM
Unit 57 Ashley Centre
EVESHAM
43 Bridge Street
EXETER
82 Fore Street
FAREHAM
45 Osborne Square 
FORT KINNAIRD
Unit 35D 
Kinnaird Retail Park 
New Craighill Road
GALLIONS REACH
Unit 18 Gallions Reach 
3 Armada Way
GATESHEAD
Unit 1/10 The Galleria 
Red Quadrant Metrocentre
GLASGOW
Unit 3-5 
Buchanan Galleries 
6 Sauchiehall St
180 Byres Rd
240 Sauchiehall St
282 Sauchiehall Street  
81 Kilmarnock Road 
109 Union Street
Unit 18 Auchinlea 
Retail Park Gartshore
GLOUCESTER
18 The Oxbode
GREAT YARMOUTH
7 Market Gate 
Shopping Centre 
GREENFORD
2 Westway Cross 
1000 Greenford Road
GRIMSBY
2 Victoria Street West
GUERNSEY
3-5 Le Pollet
St Peter Port
GUILDFORD
49 North Street
HALIFAX
1 Corn St 
HANLEY
6 Charles Street East
Precinct 
HARLOW
Unit A 3.5B Civic Walk  
HARROGATE
45 James Street
HARROW
16a St Annes Shopping
Centre
HASTINGS
Unit SU37
Priory Meadow 
Shopping Centre
HEDGE END
Hedge End Retail Park
Charles Watts Way
HELENSBURGH
14 Sinclair St 
HEMEL HEMPSTEAD
248 Marlowes 
Edmonds Parade
HEREFORD
23 Maylord Street 
Maylord Centre
HIGH WYCOMBE
19-21 Whitehart Street
HORSHAM
Unit 15 Swan Walk
HUDDERSFIELD
75 New Street
6 Queen Street
HULL
15 Jameson Street 
Unit 2 The Pod 
Junction Retail Park 
St Andrews Quay
ILFORD
211 High Road
ILKESTON
25 Bath Street
INVERNESS
44 Union Street
15 Inglis Street
INVERURIE
26 Market Place 
IPSWICH
51 Buttermarket
IPSWICH
11 Upper Brook Street  
ISLE OF MAN
Unit 1A Strand Shopping
Centre Douglas
JERSEY
45a King Street
St Helier
Jessops Classic
67 Great Russell Street
KENDAL
7 Finkle Street
KETTERING
29 Gold Street
KIDDERMINSTER
25 Vicar Street
KINGS LYNN
68 High Street
KINGSTON
99-101 Clarence Street  
KINGSTON
42A Fife Road
KIRKCALDY
130 High St
LAKESIDE THURROCK
Unit 100 Lakeside
Shopping Centre
LANCASTER
5 Cheapside
LEAMINGTON SPA
63-65 Regent Street
66 The Parade
Jessops store locations LEEDS
26 Commercial Street  
51-53 Wade  Lane
Merrion Centre
30 The Headrow
LEICESTER
43-45 Granby Street 
World Camera Centre
125 Hinckley Road 
LICHFIELD
15 Bakers Lane
LINCOLN
329 High Street
LISBURN
48 Bow Street
LIVERPOOL
19-21 Williamson Street
LIVINGSTON
58 Almondvale Centre
Almondvale South
LLANDUDNO
54 Mostyn Street
LONDON
Whiteleys Centre 
133-165 Queensway 
Level 1 Cabot Place East
Canada Square
Cannon Street Station 
10 New Broadway Ealing
113 Fenchurch Street
11 Frognal Parade
Finchley Road
46 Fleet Street
89 King Street
Hammersmith
9a Hampstead High
Street Hampstead 
295 High Street
Hounslow
42 Upper Street
Islington
360 Kensington High
Street
120 Moorgate
1 The Poultry
39-41 High Street Putney
154 T ottenham Court Road
443 The Strand
43 Strutton Ground
Victoria
46b The Mall 
Shopping City 
159 High Road 
Wood Green
World Camera Centre
63-69 New Oxford Street  
Unit 1 The Eye 
Procter Street Holborn
LONDONDERRY
Unit 6 Foyleside Centre
Orchard Street
LOUGHBOROUGH
1 Macauley House
Cattlemarket
LOWESTOFT
44 London Road North 
LUTON
47 Arndale Shopping
Centre
LYTHAM ST.ANNES
49 St. Annes Road West  
MACCLESFIELD
24 Mill Street 
MAIDENHEAD
94 High St
MAIDSTONE
Unit 245 Chequers
Centre
29 High Street 
MANCHESTER
6 Regent Crescent 
The Trafford Centre
Urmston
Unit 20 The Fort Retail
Park Cheatham Hill 
St Peters Square  
World Camera Centre
50-52 Deansgate
Unit 2B Crown Point
North Shopping Park
Worthington Way
Denton
MANSFIELD
25 Market Place 
MELTON MOWBRAY
5 Market Place
MERRY HILL
Unit U37 
Merry Hill Centre
Brierley Hill
Merry Hill Retail Park
Unit 11a Station Drive
Merry Hill Retail Park
Brierly Hill 
MIDDLESBOROUGH
7 Newport Road
MILTON KEYNES
68 Midsummer Arcade  
2 New Road Eldergate 
NAIRN
112 High Street Nairn
NEWARK
23a Middlegate
Buttermarket
Shopping Centre
NEWBURY
66-67 Northbrook Street  
NEWCASTLE UPON TYNE
23 Newgate Street  
NEWCASTLE-UNDER-
LYME
Unit 16 Roebuck Centre
High Street 
NEWPORT
31 John Frost Square
NEWPORT -
Isle of Wight
95/96 St. James Street 
NEWRY
Unit 5 
The Buttercrane Centre
Buttercrane Quays
NORTHAMPTON
1 Abington Square 
16B Peacock Place
Abington Street
NORTHFIELD
Unit 33 Grosvenor
Centre
NORTHWICH
12 Leicester Street
NORWICH
9 Westlegate
Unit LG10 111 
The Crescent
Chapelfields
3 St. Stephens Street
NOTTINGHAM
3 Cheapside
32 Market Street 
NUNEATON
3 Abbey Street  
OSWESTRY
3 Bailey Street 
OXFORD
63 George Street
16 High Street 
PENZANCE
8a The Terrace Market
Jew Street 
PERTH
45 High Street
PETERBOROUGH
8 Cowgate, Unit 3 
Queensgate Centre
PETERSFIELD
Unit 20 Rams Walk
PLYMOUTH
Unit F Armada Centre
102 Cornwall Street 
POOLE
91 Dolphin Centre
PORT LETHEN
ASDA Shopping Centre 
PORTSMOUTH
15 Arundel Street 
PRESTON
88 Fishergate 
Unit H1A Deepdale Retail
Park Blackpool Road 
READING
7 Duke Street
31 Queen Victoria Street  
REDDITCH
Unit 2 Kingfisher Centre
Walford Walk
REDHILL
50/52 Station Road
RICHMOND
3 The Quadrant 
ROMFORD
11 Stewards Walk
ROTHERHAM
Unit 31 Retail World
Stadium Way Parkgate
RUGBY
10 Church Street
39 Regent Street
SALISBURY
Old George Mall
SCARBOROUGH
20 Westborough
SCUNTHORPE
70 High Street
SHEFFIELD
9 Commercial Street 
Unit J Market St
Meadowhall
Shopping Centre
SHREWSBURY
41 Castle Street  
67 Mardol
SLOUGH
16 Queensmere
SOLIHULL
30 Mill Lane
Unit SU37 Touchwood
Shopping Centre 
SOUTHAMPTON
89 Commercial Road  
19 East Street
SOUTHEND
119 High Street
SOUTHPORT
443/445 Lord Street  
ST ALBANS
4 The Maltings
STAFFORD
35A Gaolgate Street
STAINES
111b High Street
STEVENAGE
13 Park Place
STIRLING
30 Murray Place
STOCKPORT
76/78 Princes Street
15 Warren Street  
STONEHAVEN
5 Market Buildings
STOURBRIDGE
30 Rye Market 
Shopping Centre
STRATFORD UPON
AVON
30 Bridge Street
SUNDERLAND
57A Fawcett Street
SUTTON COLDFIELD
Unit 216 Gracechurch
Shopping Centre 
The Parade
SUTTON SURREY
27 High Street
SWANSEA
6 Belle Vue Way
SWINDON
26 Bridge Street
TAMWORTH
Unit 39B Ankerside
Shopping Centre 
TAUNTON
1 St James Street
TELFORD
60 Southwater Arcade  
TONBRIDGE
Unit 8 No 7 
The Pavillion 
Shopping Centre
TORQUAY
97 Union Street
TRURO
11 St Nicholas Street
TUNBRIDGE WELLS
2 Camden Road
UXBRIDGE
Unit 201 The High Street
The Chimes Shopping
Centre
WAKEFIELD
12 Marygate West Gate 
WALSALL
1 Old Square
WARRINGTON
106A Golden Square
WATFORD
Unit 162a The Harlequin
2 Market Street
WEST BROMWICH
194 High Street
WESTON-SUPER-MARE
46 High Street
WEYMOUTH
36 St Mary`s Street
WIGAN
Unit 29 2 Hope Street
WIMBLEDON
10 The Broadway
WINCHESTER
152 High Street
WINDSOR
24 Peascod Street
WOKING
18 Commercial Way
WOLVERHAMPTON
4 Central Arcade 
The Mander Centre
48 Mander Square
Mander Centre 
10-11 Queen Street 
WORCESTER
Marmion House High Street
30 The Cross
WORTHING
6-8 Warwick Street  
WREXHAM
Unit 6B  Island 
Shopping Centre 
YEOVIL
57 Middle Street
YORK
Unit 1 Julia Avenue.
Monks Cross Retail Park.
29/30 Parliament Street  
2 Piccadilly  Sales up 6.9 % to £350.0m
 Total like-for-like sales up 2.9%
 Gross margin increased by one percentage point to 32.9%
 Operating profit up 12.3% at £20.0m
 Reported profit before tax of £17.0m
 Earnings per share of 11.0p
 Proposed final dividend of 1.50p making a total for the year of 2.25p
 Net debt reduced by £4.3m to £34.9m
 The store portfolio grew by 15 to a total number of 293 stores
 Digital printing sales up 36% by value
 Direct sales grew by 68.5%, primarily driven by the relaunch of www.jessops.com
Jessops plc Report & Accounts 2006
01
Contents
Highlights 1
Jessops plc board 2
Chairman's statement 3
Chief Executive's review 5
Operating review 9
Corporate Social Responsibility 17
Financial Review 20
Directors’ report 22
Statement of Director's responsibilities 25
Audit Committee report 25
Corporate governance  26
Remuneration Committee report 28
Independent Auditors' report to the members of Jessops plc  36
Consolidated income statement  37
Consolidated statement of recognised income and expense 38
Consolidated balance sheet  39
Consolidated cash flow statement  40
Accounting policies 41
Notes to the financial statements 44
Parent company accounts under UK GAAP 62
Notice of Annual General Meeting  66
Annual General Meeting form of proxy 67
Advisers and registered office 69
2007 reporting calendar 69
Analysis of shareholding  69
A year of
sustained growth
Growth
Expertise
Service
Innovation
Range
Multi-channel
£million
0 400 50 100 150 200 300 250 350
2006
2005
2004
2003
2002
2001
350
327
319
287
240
Turnover
£million
Operating Profit before goodwill amortisation.
* 2005 and 2006 are stated under IFRS
** 2004 to 2001 are stated under UK GAAP
0 25 5 10 15 20
2006
2005
2004
2003
2002
2001
20.0*
17.8*
19.5**
17.1**
13.5**
Operating Profit
0 300 50 100 150 200 250
2006
2005
2004
2003
2002
2001
293
278
262
246
236
207
Stores Growth
207 10.8**
Stores Jessops plc Board
1 Gavin Simonds
Chairman
Gavin Simonds, Chairman,
aged 51, joined the Group
on 28 October 2004.
Gavin is a former Director
of Kleinwort Benson and
Joint Managing Director
of InterContinental Hotels,
a former Chairman of The
Peacock Group and is
Chairman of Classic
Hospitals Group Limited,
Craegmoor Limited, Red
Funnel Group Limited and
Oval (2076) Limited (trading
as The Apollo Group).
2 Chris Langley
Chief Executive
Chris Langley, Chief
Executive, aged 43, joined
the Group on 9 February
2005 as Chief Operating
Officer and was appointed
Chief Executive on 17 May
2006. Chris is a former
Managing Director of Dixons
stores and has spent most
of his career in photographic
and electrical retailing.
3 Ian Harris
BSc (Hons) ACA,
Group Finance Director
Ian Harris, aged 44, joined
the Group on 30 October
2006 as Finance Director
Designate, becoming Group
Finance Director on 30
November 2006. Ian
qualified as a chartered
accountant with Coopers
& Lybrand in 1988 and has
spent most of his career in
senior financial positions
within consumer facing
businesses. Ian is a former
Finance Director of the RAC,
Lex Vehicle Leasing and
Welcome Break.
4 William Rollason
MA (Hons) ACA,
Non-executive Director
William Rollason MA (Hons)
ACA, Non-executive
Director, aged 46, joined
the Group on 28 October
2004. William, a qualified
accountant, is a former
Chief Executive of European
Home Retail plc and is a
former Group Finance
Director of National Express
Group plc and Associate
Director of Carlton
Communications plc. He is
also a former Non-executive
Director of Fastrack Group plc.
5 Robin Whitbread
Commercial Director
Robin Whitbread,
Commercial Director, aged
55, joined the Group on
10 May 2005 as a Non-
executive Director and was
appointed an Executive
Director on 3 July 2006.
Robin is a former Group
Buying and Marketing
Director for Somerfield PLC
and Managing Director of
Kwik Save. Previously he
spent 11 years as a Board
Director of J Sainsbury plc
across Buying, Marketing
and Operations.
Jessops plc Report & Accounts 2006
02
5
1
2 3
4
The Board currently comprises three Executive Directors, one Non-executive director and a Non-executive Chairman, 
whose business address is Jessop House, 98 Scudamore Road, Leicester LE3 1TZ. 
During the year, the former Chief Executive, Derek Hine, resigned upon retirement on 17 May 2006.
Post year-end the Group Finance Director, John Crabtree, resigned on retirement on 30 November 2006. Jessops plc Report & Accounts 2006
03
I am pleased to report that
Jessops has responded well
to the challenges facing all
retailers in 2006. Consumer
spending, and our markets
in particular, remained
volatile throughout the 
year, yet despite this we
have delivered results in 
line with expectations.
This achievement
demonstrates the positive
way colleagues in our stores
and at our head office have
responded to these testing
trading conditions. The 
team has focused on 
driving through margin
improvements, capitalising
on Jessops’ unique market
position and strong supplier
relationships. On behalf of
the Board and shareholders,
I thank them all for their
continued commitment 
and professionalism.
Sales in 2006 were 6.9% ahead of
the previous year at £350 million and
operating profit increased 12.3% to
£20.0 million, a creditable performance
given the volatile retail climate in 2006.
The Board is recommending a final
dividend of 1.50p per share, representing
a total of 2.25p for the year, an increase
of 7.1%. If approved, the dividend
will be paid on 9 February 2007 to
shareholders on the register on 12
January 2007.
The year also saw the orderly transition
of the executive management from the
team that had brought the company
from private to public ownership. Chris
Langley, our Chief Operating Officer
since February 2005 succeeded Derek
Hine as Chief Executive in May this year.
The Board was further strengthened
in July with the appointment of Robin
Whitbread as Commercial Director.
Robin, formerly a Non-executive
Director, assumed responsibility for
the day to day commercial operations,
including stores, buying, marketing
and developing and printing (D&P). 
Following Robin’s appointment as an
Executive Director, the Board will appoint
another Non-executive Director in the
near term. Ian Harris, formerly Finance
Director of the RAC and Welcome
Break, succeeds John Crabtree as
Group Finance Director with effect
from 30 November. 
Despite the considerable volatility 
in sales over the past year, decisive
action has helped us achieve our
goals in 2006. As we head towards
2007, due to the recent softness we
are experiencing, we remain cautious
about the near term outlook for our
markets. We have a strong team in
place and are determined to seize 
the opportunities that are open to us.
Gavin Simonds
Chairman
Chairman’s statement
“Sales in 2006 were 6.9% ahead of the
previous year at £350 million and operating
profit increased 12.3% to £20.0 million, a
creditable performance given the volatile
retail climate in 2006.”
Growth
Expertise
Service
Innovation
Range
Multi-channel Jessops continued its store expansion
programme, with the opening of a
further 15 new stores
Jessops plc Report & Accounts 2006
04
Jessops has experienced another 
year of sustained growth Jessops plc Report & Accounts 2006
05
The strength of Jessops’
unique market position 
has been demonstrated by
our results in 2006. Despite
continuing challenging retail
conditions, sales were up
6.9% in the year and total
like for like sales were up
2.9%. Management actions
ensured that we consistently
delivered against expectations.
The volatile market conditions
were evident in marked
trading swings throughout
the year. Against this
challenging trading
background, we focused 
our efforts on driving gross
margins, whilst at the same
time investing in our stores
and online, to capture and
grow our market share
Sales increases hard won
Year ended 30 Sept 06
% change
Total sales +6.9%
Store like for like sales -1.0%
Direct like for like sales* +68.5%
Total like for like sales +2.9%
*Internet, mail order and tele sales
Digital camera sales were up 16.6%
by value in the year, with the growth
driven by a strong performance from
digital SLR cameras, where our
reputation for unbiased advice, high
levels of customer service and value
for money, are particularly important
to customers. Our share of the overall
digital camera market for the year
ended 30 September 2006 increased
to 18.7% (Sept 2005: 16.8%).
(Source: Gfk Marketing Services Limited.)
Digital SLR sales were up 60% by
value. This segment of the market
was very active in the year, with new
digital SLR launches from Sony and
Samsung and upgraded SLR models
from Canon and Nikon.
The market for digital compact
cameras remained tough, down by
2.5% in the year. Despite this, we
managed to increase our market
share in this segment through a
combination of exclusive deals and
competitive pricing.
Price deflation remained a feature
across the camera hardware market,
although our strength in the SLR
segment of the market provided
some protection. The average price
of a digital camera sold in the UK 
in the year to September 2006 was
£161, 8.4% below last year’s level.
This compares to an average price of
a Jessops camera sold of £218, 5.3%
below last year. 
(Source: Gfk Marketing Services Limited.)
Sales of accessories, camcorders and
other photographic hardware were
flat year on year at £137.5 million,
with an 8% increase in accessories
offsetting declines in camcorders and
other photographic hardware sales.
This reflected our strong focus in 
the year on sales of higher margin
accessories. D&P sales were 2% down
in the year, with a 36% increase in
digital printing almost offsetting
continuing declines in analogue D&P .
Chief Executive’s review
“Digital camera sales were up 16.6% by value in the year, with
the growth driven by a strong performance from digital SLR
cameras, where our reputation for unbiased advice, high levels
of customer service and value for money, are particularly
important to customers.”
Growth
Expertise
Service
Innovation
Range
Multi-channel 06
Chief Executive’s review continued
Driving the business 
A number of initiatives were implemented in
the year, which helped us achieve a further
one percentage point increase in gross
margins for the full year, building on similar
gains achieved in 2005. Looking forward,
further incremental increases in gross
margin will inevitably be harder to achieve.
We continued to work closely with our
suppliers in the year, maintaining our focus
on exclusive merchandise deals. In addition
we achieved our aim of increasing the
proportion of sales from higher margin
accessories and digital printing. This was
supported by the roll-out of our £5 million
Spacemix programme, which greatly
enhances our digital printing services and
strengthens the merchandising of accessories
products. The roll-out was completed in
September, ahead of plan, and we now
have over 240 stores trading under the
Spacemix format.
In May we also announced that we had
created a state of the art in-house digital
photo printing operation in Leicester called
“Jessops Pro Lab”. This new facility supports
the 98 Jessops stores that do not have in-store
minilabs, with a capacity to print up to 2
million prints per week. This move provides
us with increased flexibility in supporting
our online and store-based photo printing
activities and provides Jessops with greater
control over the cost, quality and pricing of
its D&P offer.  
Developing Jessops as a true 
multi-channel retailer
The second half saw a number of further
initiatives in support of our multi-channel
retail strategy, including the relaunch of the
www.jessops.com website in May. Direct
sales increased 68.5% in the year, and
85.6% in the second half, accounting for
circa 10% of sales in the final quarter of
the year.  
Successful launch of Jessops 
Picture House
In addition to hardware sales online, we are
also aiming to take a leading position in the
nascent online printing market. In August
we launched our innovative online digital
printing, photo storage and photo sharing
website, “Jessops Picture House”.  
The initial customer response to Jessops
Picture House has been encouraging, with
more than 300,000 customers signing up
to the site in the first 13 weeks since its
launch. Over four million customer photos
have already been uploaded to the site,
which offers unlimited, free storage. Whilst
it remains very early days, over one million
photos were printed from the site in October,
and over 50% of customers are currently
opting for our innovative “collect@store”
service.
Online photo printing remains at a very
early stage in the UK, but we believe that
we are at the leading edge of this market.
We will be accelerating our investment in
marketing Jessops Picture House in the
coming year. This will drive customer
acquisition and also add further functionality
to the site, such as our new 1 hour
“print@store” service, which we began
rolling out in November.  
New store openings
Our store opening programme continued
throughout the year, with an additional 
15 stores added in the year, including three
stores acquired from That Camera Place
Limited. Since the year end we have opened
3 further stores and also acquired 20 former
Photo Factory stores in Scotland and Northern
Ireland from MacKinnons of Dyce. These
acquisitions and openings take the total
number of Jessops stores to 315 stores.  
People
As we continue to develop our business,
we have also maintained our investment 
in our people, who epitomise the Jessops
difference. I thank all colleagues, on behalf
of shareholders, for the way they responded
to the challenges and opportunities we have
faced during the year. Jessops’ reputation
stands on the performance of our people 
in our stores and throughout the company.  
As evidence of this, earlier this month we
were delighted once again to receive Practical
Photography Magazine and Digital Photo
Magazine’s award for “Best Photo Retailer
of the Year” for 2006, the 11th year in
succession that we have received this award.
Senior management changes
In addition to the appointments of Ian Harris
and Robin Whitbread to the Board, we have
also taken further steps in the year to
strengthen our operational management team.
Peter Riordan, joined Jessops in July 2005
as Property Director and was appointed
Stores Director in May 2006. Peter has
worked in the retail sector for over 30 years,
gaining a vast amount of experience in both
operations and store development. He was
previously Group Store Development Director
at Dixons and Operations Director at Currys.
Ralph Percival joined Jessops in March 2006
as E-Commerce and B2B Director. Over the
last seven years, he was responsible for the
development and management of numerous
e-commerce solutions, including the launch of
new retail websites for Phones4u and Dixons.
Most recently we have appointed Brian
Linnington as Marketing Director. Brian will
join Jessops in January 2007, from Boots,
where he has held a number of senior
positions in the UK and overseas. Most
recently he was Commercial Director –
Boots.com and New Channels.
“The initial customer response to Jessops
Picture House has been encouraging, with
more than 300,000 customers signing up to the
site in the first 13 weeks since its launch." Jessops plc Report & Accounts 2006
07
Market Dynamics
At the compact end of the market, where
competition is at its most intense as digital
compact cameras have now become mass
market products, the market growth seen in
recent years has peaked, and now appears to
be in decline. Price deflation and competition
means that sales growth can only be achieved
through increases in market share. Overall the
digital compact market is maturing, with
around 60% of households now owning a
digital compact camera (against 83% for
analogue compact cameras). The market is
moving towards a replacement cycle and in
2007 it is expected that 62% of digital
compact camera sales will be replacement
cameras (Source: Infotrends).
By contrast, the digital SLR camera market
is still in its growth phase, with new
manufacturers, including Panasonic, Samsung
and Sony, entering the market and existing
suppliers introducing new and improved
product offerings. The household penetration
of digital SLRs is around 2% compared to
10% for analogue SLR cameras. It is this
segment of the market where the benefits
of our specialist knowledge and reputation
for impartial advice gives Jessops a
competitive advantage. We expect the
digital SLR market to continue to show
good growth for 2007 and beyond.
In D&P , the switch from analogue to digital
continues. In the coming year, we expect to
see the growth in digital printing offset the
continuing decline of analogue developing
and for the photo printing market as a
whole to return to growth. We are well
placed to benefit from this trend. Our early
move into digital printing and our continuing
innovation in this area, offering the full range
of online, in store and home printing solutions,
has helped us secure a significant share of
the fast growing digital printing market.
Growth strategy
Our growth strategy aims to capitalise on
these market trends and to use our strong
market position and reputation for impartial
advice, to take advantage of the opportunities
open to us. In addition to pursuing operating
efficiencies, growth will be achieved through
the maturing of recently opened stores,
continuing innovation and investment, and
from targeting growth markets such as
digital SLR and digital printing.
We will continue to build the store portfolio,
through a combination of acquisitions of
existing camera shops and from opening
new sites, and will seek to maximise the
unique multi-channel opportunities open to
us through the full integration of our online
and national store proposition.  
We will also seek to exploit our expertise in
running websites and fulfilment of online
sales across a broader range of consumer
electronics products. To this end, we
recently launched a new website called
www.tecno.co.uk, which offers flat screen
TVs, MP3 players, SatNav systems as well as
a full range of digital cameras, camcorders,
printers and accessories.
The progress of our multi-channel strategy
and our increased in-store marketing
activities, which are designed to encourage
store customers to visit and use our online
services, is making it harder to distinguish
like for like sales between store and online
channels. Accordingly, going forward we
intend only reporting a single like for like
sales figure. This will take effect from the
Christmas trading update in January.
Outlook and current trading
We have delivered profits in line with our
expectations, despite volatile market
conditions throughout the year. This was
achieved by focusing on margin growth and
from increased digital SLR and digital printing
sales. We continue to seek new growth
opportunities and are encouraged by the
initial customer response to our new online
photo printing site, Jessops Picture House.  
Total like for like sales in the eight weeks to
26 November 2006 were up 4.2%, with a
51.4% increase in internet sales offsetting
a 0.3% decline in store like for like sales.
We continue to gain market share in all our
key categories and, although Christmas is
less important to Jessops than it is to many
other retailers, we are taking a cautious view
of the near term outlook in our markets,
particularly by comparison with the very
strong Christmas we enjoyed last year. It
remains very early in our financial year, but
subject to the market softness easing, as
referred to in our 29th September 2006
trading statement, we are well positioned
to deliver in line with our expectations.
Chris Langley
Chief Executive
We expect to see the growth in digital printing
offset the continuing decline of analogue
developing and for the photo printing market
as a whole to return to growth
Jessops' specialist knowledge and reputation for impartial advice
gives a competetive advantage when selling Digital SLR cameras
Growth
Expertise
Service
Innovation
Range
Multi-channel Jessops plc Report & Accounts 2006
08
Jessops continued to operate in a dynamic and
fast moving market, and has capitalised on its
market leading position due to the expertise
of its staff throughout the company, and the
development of closer relationships with its
suppliers.
One of Jessops’ hallmarks is its 
reputation for photographic expertise,
which sets the Company apart from 
its competitors Operating review
Last year saw Jessops further
strengthen its position as the
UK’s leading photographic
retailer.
The evolution of digital
imaging technology has
again driven the continued
development of the
marketplace, which Jessops
has been well placed to
capitalise upon.
Highlights have included
significant growth in a number
of key sales areas, particularly
in the digital SLR sector, and
online at www.jessops.com.
In addition, the Company has
continued its store expansion
programme, made a £5m
investment in the refitting
of 240 stores in the new
Spacemix format, launched
the new online printing
service Jessops Picture House,
and extended its in-store
kiosk services.
Business Update
Jessops continued to operate in a
dynamic and fast moving market,
and has capitalised on its market
leading position due to the expertise
of its staff throughout the company,
and the development of closer
relationships with its suppliers.
Jessops’ market share of digital SLRs
rose strongly, with the Company’s
digital SLR sales up by an impressive
60% by value, driving a 16.6%
increase in total digital camera sales. 
This digital SLR market was particularly
active during the year, with the entry
of new manufacturers such as Sony
and Samsung into the sector, and
enhanced models from Canon and
Nikon.
Nearly 50 "exclusive" special edition
digital SLRs and compact cameras
gave increased choice to customers,
helping to differentiate the Company
from its competitors.
While the overall camcorder market
saw a decline, Jessops benefited from
an increase in market share, which
can be attributed in part to focused
promotion in-store.
Jessops’ close relationships with its
suppliers also contributed to strong
growth in a number of other key
categories and underpinned margin
growth.
For example, the development of a
stronger partnership with Lowepro,
together with remerchandising and
reviewing the range of camera bags
and cases, saw sales increase
significantly year on year.
Similarly, a closer partnership with
Sandisk saw Jessops increase the range
of memory cards it supplies. Continued
product innovation, and encouraging
customers to trade up to larger capacity
cards, helped market share rise in what
is an extremely competitive and rapidly
growing market.
Jessops plc Report & Accounts 2006
09
A number of exclusive
models of both digital 
SLRs and compact cameras
provided increased choice
for customers
Growth
Expertise
Service
Innovation
Range
Multi-channel Jessops plc Report & Accounts 2006
In addition, a new partnership with
leading lens manufacturer Sigma, 
as well as Nikon and Canon, helped
Jessops improve availability and
merchandising to increase its market
share in this sector.
Sales of accessories, another area in
which Jessops specialises thanks in
part to its extensive and trusted 
own-brand range, were also strong. 
Overall, Jessops continues to offer one
of the largest range of photographic
equipment and accessories of any
UK-based retailer.
With over 5,000 major stock lines 
at any one time the business benefits
from a major retailer’s ability to source
effectively while offering the extensive
range of a specialist store - providing
consumers with an unrivalled product
selection at competitive prices.
Stores
Jessops continued its store expansion
programme, with the opening of a
further 15 new outlets.
A combination of new store openings
and acquisitions brought the total
number of stores to 293 at the year end.
One such acquisition was That Camera
Place, with the three stores now among
the leading performing outlets in the
Group.
In October 2006, Jessops acquired a
further 20 stores - 19 in Scotland and
one in Northern Ireland - from
MacKinnons of Dyce. The acquisition
has strengthened the Company’s
presence in Scotland, delivering
benefits in terms of operational and
marketing efficiencies.
In response to growing digital camera
ownership - and subsequent increased
demand for digital developing and
printing - the Spacemix store format
was developed.
The Spacemix format features four clear
zones including an increased number
of photo printing kiosks, a prominent
area for camera hardware, an extended
accessories range, and a customer
service point.
The format introduces a standardised
store layout to allow for more
effective merchandising and range
management.
Following an extensive trial, the Group
has invested £5m in rolling out the
format and the conversion of 240
stores was completed in September
2006, ahead of schedule. 
Operating review continued
The Spacemix conversion brought the 
total number of photo printing kiosks
throughout the store network to over
1200, more than any other retailer.
10 Jessops plc Report & Accounts 2006
11
Throughout its continued growth,
Jessops remains committed to
maintaining the high levels of 
service the Company’s customers
expect and deserve
The quality of Jessops' people is recognised across
the retail industry, and the Company continues 
to invest in training and development to further
enhance the skills and expertise of staff throughout
the business.
Growth
Expertise
Service
Innovation
Range
Multi-channel Jessops plc Report & Accounts 2006
12
Jessops maintains its position as one of the
market leaders in digital printing, with sales
increasing  36% by value compared to the
previous year,  reaching a new high of 
3 million prints in one week.
Innovation is the lifeblood of Jessops’
business and a major factor in the 
Company maintaining its position 
as the UK’s leading 
photographic retailer 13
Operating review continued
People
The quality of Jessops’ people is
recognised across the retail industry,
and the Company continues to invest
in training and development to further
enhance the skills and expertise of
staff throughout the business.
Whether working throughout the
store network or at the store support
centre, staff have a genuine passion
for photography and many are
photographic enthusiasts themselves.
They have earned an enviable reputation
for offering expert guidance and, as
staff are not paid commission, customers
can be assured of receiving impartial
advice, increasing the trust they place
in the Jessops brand.
The Jessops Store of the Year
programme continues to encourage
and reward staff talent. Colchester
store Manager Sue Gammons was
not only named Jessops Store Manager
of the Year 2005, but went on to
become a finalist in the prestigious
Retail Week Awards Store Manager
of the Year 2005.
Heidi Watson, Reading store Manager
and current Store Manager of the Year,
has been shortlisted for the same
category in the 2006 Retail Week
Awards.
Jessops was voted “Retailer of the
Year” for the 11th consecutive year
(1995 to 2006) by readers of Digital
Photo and Practical Photography, who
have also voted the Group “Processor
of the Year” for three out of the last
four years.
Innovation in Developing &
Printing
Innovation is the lifeblood of Jessops’
business and a major factor in the
Company maintaining its position as
the UK’s leading photographic retailer.
The Company remains committed to
being the first to bring innovative
new products and services to the sector.
As part of this strategy, Jessops is
continually pushing the boundaries of
developing and printing services, as
illustrated by the introduction of Jessops
Picture House with its collect@store
service or home delivery options.
The new print@store service - where
customers can order online at Jessops
Picture House and collect their photos
from store in only one hour - was
successfully trialled, and 100 stores will
offer this service by Christmas 2006. 
In-store services will be enhanced
through the introduction of a new
30-minute service in over 200 stores,
also by Christmas 2006. This will
further add to the convenience of
Jessops' services.
Colchester Manager Sue Gammons (front) was
not only named Jessops Store Manager of the
Year 2005, but went on to become a finalist in
the prestigious Retail Week Awards Store
Manager of the Year 2005
Jessops plc Report & Accounts 2006
Growth
Expertise
Service
Innovation
Range
Multi-channel 14
Sales of photogifts grew significantly
year-on-year - with customers able to
order online, over the counter, or
through in-store kiosks - and this
trend looks set to continue.
Jessops is also the first Company in
Europe to trial the Hewlett Packard
Microlab which enables high speed
printing in small stores with
insufficient space to accommodate 
a conventional lab.
Jessops maintained its position as one
of the market leaders in digital printing,
and achieved a new high with sales
increasing 36% by value compared to
the previous year, reaching a new high
of 3 million prints in one week. 
As such, digital printing is an important
category for Jessops, particularly given
the better than average margin it offers
and the growth potential in the market.
The Company is continuing to invest to
ensure it capitalises on this opportunity
for growth, and maintains its position
at the leading edge of this dynamic
sector.
Jessops Pro Lab
The creation of a new state-of-the-art
digital photo processing operation,
'Jessops Pro Lab', is providing improved
quality and lower costs. The new
facility is believed to be the biggest
of its kind in Europe, and has created
50 new jobs.
The facility has been established to satisfy
the increasing demand for digital
photo printing and provides support
for the store network, particularly
those branches without their own
lab, and for Jessops Picture House. 
Jessops Picture House
The Jessops Picture House website
offers customers free unlimited
storage alongside a range of other
services including photo managing
and sharing, an extensive choice of
photogifts and prints, and the option
to collect in-store or have orders
delivered.
Jessops Picture House attracted over
300,000 customer registrations in the
first thirteen weeks following its
launch in August. It has received
extensive coverage in the national
press, contributing greatly to
increasing awareness of both the
Jessops brand and Picture House.
The option to collect orders from any
Jessops branch - taken up by more
than 50% of customers - means that
many people who have previously
not visited a store are being introduced
to Jessops’ retail excellence, service,
value and product range.
Web
Jessops Picture House complements
the existing online offering at
www.jessops.com, and the Company
continues to view the web as an area
of considerable potential growth.
This approach has been underlined
by results which have seen direct sales
grow by 68.5% year on year to the
extent that they accounted for 10%
of total sales during the final quarter.
The increase has been driven by the
strengthened management team which
has implemented a number of
innovations and service improvements,
and will progress further major
developments during the next 
12 months.
www.jessops.com delivers the
Company’s key brand value of
expertise and product knowledge,
with extensive details on every
product available.
Operational enhancements have
improved efficiency and include
customers receiving an email on
despatch of their products, and the
facility to track orders online. 
In November 2006 Jessops launched
a new website - www.tecno.co.uk -
offering a range of the latest consumer
electronics including MP3 players, LCD
televisions and computer peripherals.
The site builds on the Company’s
proven expertise in successfully
developing and operating websites and
will fill a gap in the market for the
growing number of online consumers
who want the reassurance of buying
from a name they know and trust.
The Company continues to pursue a
multi-channel ‘bricks and clicks’ strategy
to ensure it maximises the opportunities
offered by all routes to the market.
Operating review continued
The last year saw online sales grow to
the extent that they represented 10% 
of Jessops' total sales in the last quarter. With over 5,000 major stock lines and an
additional extended range of 12,000 stock 
lines at competetive prices.
Jessops plc Report & Accounts 2006
15
Jessops continues to offer one of 
the largest range of photographic
equipment and accessories of 
any UK-based photographic 
retailer
Growth
Expertise
Service
Innovation
Range
Multi-channel Jessops’ is a multi-channel 
retailer offering customers the 
choice of purchasing goods and 
services in-store, online or 
via mail order
The Company continues to pursue 
a multi-channel 'bricks and clicks' 
strategy to ensure it maximises 
the opportunities offered by all 
routes to market.
Jessops plc Report & Accounts 2006
16 Jessops plc Report & Accounts 2006
17
Corporate Social Responsibility
Stakeholders
The Group continues to recognise the
need to engage with its key stakeholders
and that this engagement must align
closely with its business objectives if
it is to maximise shareholder value and
service to the customer by promoting
efficiency and quality and by minimising
cost and bureaucracy. 
In addition to the environment, the
Group’s key stakeholders are:
• Customers
• Shareholders
• Colleagues
• Suppliers
• Communities
Customers
The Directors believe that the Group
offers the customer a specialised retail
experience which demonstrates that
“Your pictures” are “Our passion”.
One of the key differentiators of the
Jessops’ business model is customer
service.
The Directors are proud of the Group’s
knowledgeable staff, who provide
reliable, unbiased advice and technical
support to customers making a buying
decision. To ensure that this core value
is not diluted, the Group places a strong
emphasis on continued training to
provide Jessops staff with the skills to
understand customer requirements
across a range of products and to allow
a sales-orientated ethos, whilst retaining
a high level of customer service and
unbiased advice.
Product knowledge continues to be an
important feature of weekly training
sessions which all stores undertake. 
The Group takes all reasonable care
to ensure the safety and quality of the
goods it provides, employs a full time
customer liaison department and works
closely with local Trading Standards
Officers. During the year, a programme
of training began to increase the
knowledge and awareness of pricing
and advertising issues amongst
colleagues to ensure that the Group’s
trading practices remain honest and fair.
The Group has been voted “Retailer
of the Year” for 11 consecutive years
(1995 to 2006) by the readers of Digital
Photo and Practical Photography, who
have also voted the Group “Processor
of the Year” for three out of the last
four years.  
Shareholders   
The Chairman continues to seek to
ensure that there is effective
communication with individual and
institutional shareholders through the
announcement of regular trading
updates, the posting of results on the
Group’s website and general
presentations after the announcement
of the interim and preliminary results.
The Board continues to believe that
the Annual General Meeting is the
main forum for communication with
shareholders, where the Chairmen of
the Board and its sub-committees are
available to answer any issues raised
and where Non-executive Directors
are available to meet shareholders. In
addition, the Company Secretary and
the Company’s Brokers draw the
attention of the Board to all relevant
shareholder communications. The
Board also reviews briefings and
comments by analysts in order to
maintain an understanding of market
perceptions of the Company.
The Senior Independent Director is
available to shareholders if they have
concerns which cannot be addressed
through the normal channels, such as
Chairman, Chief Executive or Group
Finance Director, or for which such
contact is not appropriate.
All substantial issues, including the
receipt of the annual report and
accounts, are proposed at the Annual
General Meeting as separate resolutions.
Colleagues
The Directors continue to recognise that
their colleagues within the business
are vital to its ongoing success and
continue to try to make employment
within the Group a safe, rewarding,
challenging and developmental
experience.
Training opportunities are provided 
to store staff and other employees.
The Training Department is run by
experienced training staff, with a
substantial training investment which
is focused on both store staff training
and management development.
Training needs are assessed at least
once per year in all stores and head
office. Examples of such development
and training includes programmes 
to develop customer service, store
managers, technical product knowledge
and product awareness. The Group
also runs NVQ programmes to further
develop staff potential and recognise
achievement. 122 colleagues have
achieved NVQ Retail Operations
Apprenticeship and Advance
Apprenticeship qualifications during
2006, with 48 colleagues currently
studying for similar qualifications.
Jessops NVQ completion rates are
currently 57%, compared with a
Government target of 35%.  Corporate Social Responsibility continued
The Group recognises the need to provide
career development training to managers
and potential managers in order to develop
their skills and encourage promotion from
within. An annual Management Development
Programme (MDP) is run to develop store
management potential, helping to provide
a steady flow of store managers for the new
stores opened each year. During the year
35 colleagues participated in the scheme
(2005: 34 colleagues).
In addition, 1,673 store colleagues were
trained during the year in customer-facing
selling and support techniques.    
The Group has developed clear and fair
employment policies, details of which may
be found in the employee handbook which
is issued to all staff and is reviewed, revised
and re-issued from time to time. Details of
employee participation may be found in the
Director’s Report.
The Group seeks to comply with all relevant
employment and health and safety legislation.
In addition to the on-going work on health
and safety management and awareness
training, the Group held a Health and Safety
Awareness week early in the summer. During
the financial year, the Group had 3 reportable
accidents (2005: 6) under the Health and
Safety Executive’s Reporting of Injuries,
Diseases and Dangerous Occurrences
Regulations (RIDDOR). This is for injuries or
accidents occuring at work and which result
in more than 3 days absence from work.
Suppliers
The Directors continue to believe in developing
strong and successful trading relationships
with suppliers which benefit the customer
by providing:
• An unparalleled range of products
and services
• Reasonable prices
• Consistent levels of quality
In doing so, the Directors recognise the
Group’s obligation to comply with competition
law and have developed procedures to ensure
that these relationships remain at arms length.
The Group continues to adopt a clearly stated
policy concerning the fair and timely payment
of suppliers.
Own brand product undergoes a thorough
Quality Assurance programme to ensure
that suppliers are meeting their obligations
to provide goods of the required standard.
In addition the work undertaken with the
Group’s own brand suppliers for the purposes
of the Waste Electrical and Electronic
Equipment Directive and Restriction of certain
Hazardous Substances has had a beneficial
impact on their operations.
The Group also has begun to formalise its
ethical sourcing policy, starting with a review
of the activities of our own brand suppliers. 
Communities
The Group’s relationship with the community
remains important to the Directors and is
emphasised by the continued partnership
with the charity CLIC Sargent, which raises
money for children whose lives have been
affected by cancer and leukaemia.
During 2006, staff and customers raised
£37,000 for those children and their families
who benefit from the work of CLIC Sargent.
During the course of the last 3 years, a total
of £157,000 has been raised for this charity
and the Directors wish to thank all those who
have generously contributed to this success.
During the year the Group was awarded
the Leicester College Award to Industry for
the support given to Business Administration
Students from the local colleges who have
been offered work placements at the Group’s
head office.
The environment
The Group continues to treat its environmental
obligations with the utmost responsibility, is
committed to the prevention of pollution and
works to minimise the environmental impact
of its operations wherever and whenever
practicable. The Directors also recognise
that the effective implementation of its
environmental policy represents an opportunity
to improve performance by increasing the
efficiency of the Group’s operation by reducing
environmental risks and securing business
benefit from environmental protection.
The recent increase in utility costs has been
a significant factor in encouraging further
work on energy efficiency. During the course
of the year, the Group has consulted with
the Carbon Trust on improving the energy
efficiency of the business.
The Group has also begun an internal review
of the enviromental impact of its activities.
The results of this review will be used to
identify ways in which the activities of the
Group can reduce environmental impact
and secure additional business benefit. This
review will also identify key indicators of
enviromental performance where reasonably
practicable and cost effective to do so.
In a number of recent property refurbishments,
requirements for more environmentally
friendly refit work has resulted in wood
from sustainable sources being used and an
experimental arrangement with a contractor
for the use of energy efficient lighting. 
Minilab chemical disposal and recycling
The Group has registered all minilab stores
and the head office site with the Department
of the Environment, Food and Rural Affairs
(DEFRA) for the collection of hazardous
waste. This registration is renewed annually.
Jessops plc Report & Accounts 2006
18 Corporate Social Responsibility continued
The chemical process for the development
of photographic prints in the in-store
minilabs and central lab facility produces
a liquid effluent which, if discharged into
watercourses, may be harmful to aquatic
life. The major contaminants in this waste
are heavy metals, predominantly silver. The
Group collects the effluent, which is treated
by a licensed environmental contractor to
extract the silver and make the liquid
water-safe for discharge into the normal
sewerage. The extracted silver is recycled.
Post-year end, the recycling contractor has
been visited by representatives of the Group
to conduct an Environmental Compliance
Audit to confirm that the waste taken from
Group sites is processed and disposed of
appropriately.
Asbestos
The Group continues to fulfill its obligations
regarding asbestos found in buildings in the
Group’s custody. A full survey for the presence
of asbestos on all sites was undertaken in
2004 and each of the relevant sites has a
statutory asbestos management plan which
is reviewed annually. Stores newly acquired
during the year have a full survey as part of
the acquisition process and a management
plan is developed once acquired.
Waste Electrical and Electronic
Equipment Directive (WEEE)
The WEEE implementation date for retailers
in the UK has been delayed until January
2007, when the Group will join both producer
and retail compliance schemes. Actual
producer and retail obligations will apply
from 01 July 2007 and work is currently
on-going to ensure that the Group is fully
compliant by this date. The Group already
operates to WEEE requirements in place in
the Irish Republic in relation to goods sold
in the Dublin store. The Group’s contribution
to the understanding and compliance of
WEEE extends beyond the Group and the
business has had a significant role in spreading
awareness within the industry in both the
UK and abroad. The Group has participated
directly in industry consultation with the
Department of Trade and Industry, the British
Retail Consortium and other interested parties. 
Restriction of certain Hazardous
Substances (RoHS)
The RoHS regulations for electrical products
became enforceable on 01 July 2006. These
regulations ban the use of lead, cadmium,
chrome 6, mercury, poly brominated biphenyls
(PBB’s) and poly brominated diphenyl ethers
(PBDE’s) in electrical and electronic goods.
As with WEEE, the Group has undertaken
considerable work over the last few years
to ensure compliance with the regulations,
working with others in the industry and
own brand suppliers.      
Packaging Waste Regulations
The Group was audited during the year by
the Environment Agency under the Packaging
Waste Regulations. The triennial audit was
passed without any major suggestions for
improvement and the Group has used the
associated internal review to make efficiency
improvements in the annual reporting system.
Waste paper and cardboard
The business recycles card, paper packaging
and waste products whenever it is practicable
to do so. During the year 172 tons of
cardboard (2005: 135 tons) and 23 tons of
waste paper (2005: 15.6 tons) were recycled.
In addition, a renewed paper recycling
proposition was introduced into the head
office operation providing 30 recycling bins.
The Group’ s store in Dublin provides customers
with biodegradable paper bags in order to
comply with Irish environmental law.
Annual report & accounts
This annual report and accounts document
has been made from recyclable components.
The report is printed on Revive Silk paper
containing 75% de-inked post-consumer
waste. The remaining fibre used is 25%
combination of mill broke (papermaking
process waste) and virgin fibres. Revive is
accredited with NAPM (75% minimum
recycled) and Eugropa (50% recycled) labels.
The paper was produced at a mill with ISO
14001 accreditation, an internationally
recognised specification for mills running 
their businesses with as little impact on 
the environment as possible. All pulps are
made without the use of chlorine gas in 
the bleaching process.
Once it no longer serves a useful purpose,
users of this annual report and accounts 
are requested to dispose of the document
thoughtfully. Please recycle the document 
if at all possible. 
Fire safety 
The Group has prepared to meet its obligations
under the new Fire Safety Order 2005 by
establishing a process under which all the
Group’s operational sites will have fire risk
assessments and a management programme
for reviewing and updating those risk
assesments.
Motor vehicles
The Group’s fleet of vehicles continues to
be maintained and serviced by authorised
dealers and repair companies with the
appropriate facilities to safely dispose of
waste product, such as tyres and oil.
Jessops plc Report & Accounts 2006
19 Jessops plc Report & Accounts 2006
20
Financial review
Turnover
Jessops’ turnover increased by 6.9% to £350.0 million in the year
ended 30 September 2006 (2005: £327.4 million). This was
principally the result of increased demand for digital photo imaging
products, in particular digital SLR cameras, growing internet sales
and new store openings, partially offset by a 1% decline in store
like for like sales**.
Jessops’ store network accounted for 88.5% of the Group’s
turnover in 2006. The remainder was generated through the direct
consumer channel, primarily the internet, and the business to
business and wholesaling activities. Like for like sales on the
internet grew by 68.5% resulting in an overall like for like sales
increase of 2.9% for the Group.
Digital SLR sales grew 60% by value, driven by new products, lower
prices, and more manufacturers entering the market, providing the
consumer with a wider range of products at competitive price
points. Digital compact sales declined by 1.4%, resulting in an
overall increase in digital camera sales of 16.6%. Strong growth
was also evident in digital printing, up 36% year on year, as
consumers became more aware of the convenience, quality and
competitive pricing available in all Jessops’ stores. The decline in
other photographic hardware reflects lower sales of scanners and
home printers.
Turnover
FY 2006 FY 2005
£million £million
Cameras 183.0 159.8
Photographic accessories 88.1 81.2
Developing and printing 29.5 30.1
Camcorders 29.5 31.2
Other photographic hardware 19.9 25.1
Total turnover 350.0 327.4
**Like for like sales information is a comparison of stores sales in
consecutive financial years, with new stores being included in the
calculation after a trading period of at least 12 months and
excluding stores closed in the relevant period
Product mix and margins
Product margins vary widely within and across product categories.
As a general rule, however, accessories and digital printing enjoy
higher margins than hardware (including cameras and camcorders).
Gross margin in 2006 at 32.9% was one percentage point higher
than in 2005, reflecting a number of management initiatives
implemented in the year, including increasing sales of higher
margin digital printing services and own brand accessories.
Operating expenses increased by 9.8% to £95.2 million in 2006
from £86.7 million in 2005. This increase was principally the effect
of new store openings and a higher depreciation charge on the
new IT system which was only fully operational for part of 2005.
Total staff costs have risen in line with the increased staffing
requirements of the new digital Spacemix format, the new store
expansion programme and the new in-house printing laboratory
whilst decreasing as a percentage of sales from 12.2% to 12.0%.
Occupancy costs have increased from 7.2% of sales to 7.3% as
rents, rates and energy costs have continued to rise at above the
rate of inflation.
Operating profit increased by 12.3% to £20.0 million in 2006 from
£17.8 million in 2005. This increase reflected management actions
to improve margins and control costs, and the uplift in sales. The
operating profit margin increased to 5.7% (2005: 5.4%).
Jessops’ turnover and operating profits demonstrate a semi-annual
peak in December, as a result of the Christmas shopping season,
and again in the summer period as customers purchase cameras,
memory cards and film for their summer holidays and subsequently
have their images developed. In 2006 the Christmas peak was higher
than has historically been the case, reflecting strong demand for
digital cameras. The different mix of products bought in each of
the peaks contributes to slightly higher margins in July and August
as compared to December and January.
Interest charges
Jessops’ net interest payable was £2.7 million in 2006 compared to
£3.6 million paid in 2005. The reduction reflects the higher interest
paid in the first month of 2005 immediately prior to flotation.
The 2005 one-off cost relates solely to the write off of the
unamortised deferred finance costs which arose following the
repayment of the existing loan notes and bank loans post flotation. Jessops plc Report & Accounts 2006
21
Taxation
The tax charge for the year amounted to £5.7 million (2005: £3.6
million) on profit before tax of £17.0 million (2005: £9.9 million.)
The effective rate of tax for 2006 is 33.8% (2005: 36.7%).
Profit for the financial period
Jessops’ recorded a profit after interest and tax in 2006 of £11.3
million. The increase of £5.0 million from 2005 was principally the result
of the increased operating profit and reduced exceptional items.
Earnings per share
Basic earnings per share improved to 11.0p (2005 basic earnings
per share: 6.4p; 2005 basic earnings per share before one off costs:
9.4p). The increases reflect the increased level of profit for the
financial period described above.
Dividends
An interim dividend equating to 0.75p per share was paid in July 2006
in respect of the 6 months ending March 2006. The total dividend
paid in the financial year was therefore 2.15p per share. It is envisaged
that a final dividend equating to 1.50p per share, in respect of the
12 months ending September 2006 will be paid on 9 February
2007 to shareholders on the register on 12 January 2007.
Cash flows
Cash generated by operations increased to £26.3 million in 2006
compared to £13.4 million in 2005. The increase in 2006 was
principally due to the increase in EBITDA and net working capital
held at broadly constant levels year on year.
Capital expenditure
The principal use of cash during the period has been capital
expenditure incurred in relation to the roll out of the digital
Spacemix store format (including the installation of additional
digital printing kiosks), new store openings, investment on the
relaunch of jessops.com website and establishing an in-house
photo-processing and printing laboratory.
Financial structure and financial risk management
At 30 September 2006, Jessops’ total net debt was £34.9 million
(2005: £39.2 million).
The Group has committed bank facilities comprising an amortising
five year term loan of £35 million, a £20 million revolving credit
facility and a £12.5 million overdraft facility, which together with
occasional cash surpluses provide sufficient funding for the Group’s
operations. In accordance with the committed facility dated 28
October 2004, the Group repaid £2 million of term debt on 31
October 2005 and a further £3.5 million on 30 April 2006, and will
continue to pay bi-annual amounts for the remaining term of the
facility. The Group had undrawn committed facilities of £26.3 million
at 30 September 2006.
The Group’s bank borrowings carry a variable rate of interest linked
to prevailing LIBOR rates. From time to time the Group enters into
interest rate swaps and similar products to mitigate the risk of rises
in UK interest rates. There are no such arrangements in place at 
30 September 2006.
Pensions
Jessops operates a defined benefit pension scheme (The Jessop Group
Limited Pension and Life Assurance Scheme (1993)), which was
closed to new members in January 1997. The latest full actuarial
valuation was carried out on 1 June 2004 and was updated for
IAS19 purposes at 30 September 2006 by a qualified independent
actuary. Under the IAS19 valuation, the pension deficit decreased
from £10.2 million in 2005 to £8.3 million at the end of September
2006. The Group is paying a monthly contribution of £130,000.
Jessops also has a defined contribution scheme (“The Jessop Group
Limited Money Purchase Pension Scheme”) into which it contributes
between 1% and 6% of salary depending on the employee’s age
and length of service. This scheme is provided by Norwich Union
and is compliant with stakeholder requirements.  
International Financial Reporting Standards
The consolidated financial statements of Jessops plc are now
prepared in accordance with International Financial Reporting
Standards (‘IFRS’) as adopted by the European Union and with
those parts of the Companies Act 1985 applicable to those
companies reporting under IFRS. The Group had previously 
reported under UK GAAP.
The date of transition to IFRS was 1 October 2004, which is the
beginning of the comparative period for the year to 30 September
2006. The results for the year to 30 September 2005 have
therefore been restated under IFRS and resulted in an increase to
operating profit of £4.0 million as follows:
£ 000
Operating profit – UK GAAP – 
for the year ended 30 September 2005 13,759
Adjustments:
Goodwill amortisation 4,199
Charge relating to fair value of share based payments (121)
Lease incentives: change in the period 
over which benefit is recognised (45)
Total adjustments 4,033
Operating profit – IFRS – 
for the year ended 30 September 2005 17,792
Details of the impact of the transition to IFRS are given in note 26
to the consolidated financial statements.
John Crabtree
Group Finance Director
Financial review continued Jessops plc Report & Accounts 2006
22
Directors’ report
The Directors present their annual report and the audited
financial statements for the year ended 30 September 2006.
Principal activities
Jessops plc is the holding company of a group of companies whose
principal activity is the retail of photographic products and services.
The only trading subsidiary whose results, in the opinion of the
Directors, materially affects the results of the Group is The Jessop
Group Limited. A review of the development and activities of the
Group is contained within the Chairman’s statement, the Chief
Executive’s review, the Operating review and the Financial review.
Trading results
The profit on ordinary activities before taxation and one-off costs
was £17.0 million (2005: £13.8m).
Dividends
The Directors recommend payment of a final dividend of 1.50 pence
per Ordinary Share (2005: 1.40 pence), which together with the
interim of 0.75 pence per Ordinary Share (2005: 0.70 pence), will
result in a total dividend of 2.25 pence per Ordinary Share for the
full year (2005: 2.10 pence).
Going concern
After making suitable enquiries, the Directors believe that the
Group has adequate resources to continue to adopt the going
concern basis in preparing the accounts.
Enhanced business review
The Directors believe that the requirments of an enhanced business
review under s.234zzb of the Companies Act (1985) are collectively
met in the Chairman’s statement, the Chief Executive’s review, the
Operating review,the Corporate and social responsibility section,
the Financial review, the Directors’ report, the Audit Committee
report, the Corporate governance section and the Remuneration
report.  
Company structure
Jessops plc listed on the London Stock Exchange on 3 November
2004.
Employees
Ensuring that staff are of the right calibre and remain appropriately
motivated is key to ensuring that customer service levels remain at
a consistently high level. The Group employs a combination of full-
time and part-time staff that reflect both the daily trading peaks as
well as the seasonal peaks of Summer and Christmas.
It is the policy of the Group to provide employment equality to all
employees irrespective of race, ethnic origin, nationality, gender,
age, maritial or family status, disability, religious belief, political
opinion or sexual orientation.
Where possible, full details of all available vacancies are posted
internally. Appointments are made on the basis of skills, experience
and aptitude required for the vacancy.
Employee participation
The Group places considerable value on the involvement of its
employees. As such it pays a significant amount of attention to
maintaining and improving communications, to ensure that all
colleagues are kept informed on matters affecting them as
employees and on the various factors affecting the performance of
the Group.
This is achieved through formal and informal meetings, weekly
briefing documents, monthly team briefings and a bi-monthly DVD
to communicate visually with staff. Also on a bi-monthly basis, the
Group holds a Colleagues Forum Meeting for head office staff and
the Area Communicators Meetings for stores, which discuss current
issues, best practice ideas and allows the views of staff to be
communicated to the Group management team. Supervisors and
team leaders also attend quarterly briefings to keep them abreast
of business developments.
The Company has introduced a second Save As You Earn scheme
and a Share Incentive Plan during the year to give colleagues the
opportunity to participate in the future success of the business.
Financial reporting
The statement by the Chairman on page 2 and the relevant
information included in this Directors’ report and the Remuneration
report, give a summary of the Group’s past performance, present
position and future prospects. A statement by the Directors on 
their responsibility for preparing the financial statements is given 
on page 25 and a statement by the auditors on their responsibilites
is given on page 36.
Supplier payment policy
The Group’s policy is to pay amounts owed to creditors as they fall
due. The Group does not follow any code or standard on payment
practice. Trade creditor days of the Group as at 30 September
2006, calculated in accordance with the requirements of the
Companies Act 1985, were 71 days (2005: 65 days). This
represents the ratio, expressed in days, between the amounts
invoiced to the Group in the year by its suppliers and the amounts
due, at the year-end, to trade creditors falling due for payment
within one year.
Charitable donations
The Company donated £547 to charity during the year (2005:
£5,500). Jessops customers and staff also raised a further £37,000
for CLIC Sargent through a number of fundraising activities and the
Directors would like to thank all those who contributed to this
worthwhile cause. Jessops plc Report & Accounts 2006
23
Director’s and Director’s interests
The Directors who held office during the period were as follows:
Derek Hine resigned 17 May 2006
Chris Langley appointed 30 November 2005
John Crabtree
Robin Whitbread
Gavin Simonds
William Rollason
Chris Langley was appointed an Executive Director on 30 November
2005 and appointed Chief Executive on 17 May 2006. 
Robin Whitbread was a Non-executive Director during the year until
his appointment as an Executive Director on 3 July 2006.
After the end of the financial year to 30 September 2006, Ian Harris
was appointed an Executive Director on 30 October 2006 and 
John Crabtree resigned as an Executive Director on 30 November 2006. 
Gavin Simonds retires by rotation and, being eligible, is
recommended for re-election at the Annual General Meeting. 
Ian Harris is recommended by the Board for re-appointment as 
an Executive Director at the Annual General Meeting.
There have been no changes in Directors’ shareholdings between
the end of the financial year and 30 November 2006, other than
the purchase of 94 Partnership Shares in the Company’s Share
Incentive Plan on 31 October 2006 by Chris Langley. 
Share options and Long Term Incentive Plans granted to Directors
are shown in the Directors’ Remuneration report.
Details of the Directors’ beneficial interests in the ordinary share capital of the company at 30 September 2006 are set out below:
Ordinary Shares of 2.5 pence each Ordinary Shares of 2.5 pence each
Interest at Interest 
beginning of year at end of year
John Crabtree 1,575,350 1,575,350
Chris Langley 29,371 27,871
Gavin Simonds 16,000 48,000
William Rollason 16,000 16,000
Robin Whitbread 10,000 20,000
At the year end, the Executive Directors also held Parnership Shares in the Company’s recently opened Share Incentive Plan (SIP) and had
an interest in the Matching Shares purchased by the Company on their behalf. The beneficial ownership of the matching shares will pass to
the Directors three years from the date of acquisition, subject to continued employment and the retention of the underlying Partnership Shares:
Ordinary Shares of 2.5 pence each Ordinary Shares of 2.5 pence each
Partnership Shares at Matching Shares at Total Number of Partnership 
30 September 2006 30 September 2006 and Matching shares
30 September 2006
John Crabtree 1,158 1,158 2,316
Robin Whitbread 1,158 1,158 2,316
Chris Langley 96 96 192
The Directors hold non-beneficial interests in the ordinary share capital of the Company in the form of SIP Matching Shares shown above. 
Directors’ report continued
Disclosure of information to auditors
The Directors who held office at the date of approval of this
Directors' report confirm that, so far as they are each aware, there
is no relevant audit information of which the Company's auditors
are unaware; and each Director has taken all the steps that he
ought to have taken as a Director to make himself aware of any
relevant audit information and to establish that the Company's
auditors are aware of that information. 
Substantial shareholdings
The Directors are aware of the following holdings of 3 % or more,
including non-beneficial holdings which do not require notification
under the Companies Act 1985, of the Company’s issued share
capital at 14 November 2006:
%
Investec Asset Management 12.18
JP Morgan Asset Management 9.79
Legal & General Investment Management 7.79
Barclay Global Investors 5.44
Fidelity International (UK) 4.43
Morley Fund Management 4.40
Gartmore Investment Management 4.36
RC Brown Investment Management 3.12
Financing
The Group's treasury policies are reviewed and approved by the Board.
The Group enters into financial instruments which arise directly
from its operations or are solely for the purpose of financing the
Group's operations and managing the associated risks.
The objective is to ensure that the Group has access to liquidity at
all times and has a continuity of funding available in a cost effective
manner. This is achieved through arranging funding ahead of
requirements and maintaining sufficient undrawn committed facilities
to meet unanticipated needs.
The Group’s policy is to finance its operations through a mixture of
retained profits and bank borrowings. The Group does not trade in
financial instruments. The main risks to arise from the Group’s
borrowings are interest rate risk and currency risk.
(a) Interest rate risk
The Group’ s bank borrowings carry a variable rate of interest linked to
prevailing LIBOR rates. From time to time the Group enters into interest
rate swaps and similar products to mitigate the risk of rises in UK interest
rates. There are no such arrangements in place at 30 September 2006.
(b) Foreign currency risk
Some purchases are denominated in US dollars, Euros and Japanese
yen. The Directors do not consider it necessary to hedge for foreign
exchange exposure. Jessops plc Report & Accounts 2006
24
Authority to make market purchases of shares (Resolution 10)
Further to the resolution passed at the previous Annual General
Meeting to give the Directors authority to make market purchases
of shares, such authority expires at the next Annual General Meeting.
The Directors are seeking to renew the authority as follows:
The Directors are seeking authority to make market purchases of
shares of up to an aggregate nominal value of £128,546, being
5% of the current issued share capital of the Company, on such
terms and in such manner as the Directors may determine, provided
that the amount paid for each share (exclusive of expenses) will not
be more than 5% above the average of the middle market quotation
for ordinary shares as derived from the Daily Official List of London
Stock Exchange plc for the 5 business days prior to the contract 
for the purchase is made, and in any event not less than 2.5p per
share. The authority sought will expire at the conclusion of the 
next Annual General Meeting.
The Directors have no present intention to make any such market
purchases but consider it is desirable for them to be given this
opportunity by shareholders. The authority will only be exercised if
to do so would result in an increasing in earnings per share and is
in the best interests of shareholders generally.
The Company currently has 4,181,246 Ordinary Shares of 2.5 pence
each under option pursuant to the Approved and Unapproved Share
Option Schemes, representing 4.07% of the current issued share
capital. These options would represent 4.28% of the Company’s
issued share capital if the authority sought in Resolution 10 were
exercised in full.
Auditors
In accordance with Section 385 of the Companies Act 1985, a
resolution for the re-appointment of KPMG Audit Plc as auditors of
the Company and for the Directors to fix their remuneration is to
be proposed at the forthcoming Annual General Meeting.
By order of the Board
Nick Molyneux
Secretary
Annual General Meeting
The Company’s Annual General Meeting will be held at 250
Bishopsgate, London, EC2M 4AA on 29 January 2007 at 11.00 am.
The following special business will be proposed:
Authority to allot shares (Resolution 8)
The Directors are seeking authority under Section 80 of the
Companies Act 1985 to allot shares up to an aggregate nominal
value of £856,979 being approximately one-third of the current
issued shares in the event that they consider it appropriate to do
so. The authority will be in substitution for all the previous
authorities, which accordingly will be revoked. The authority sought
will expire at the conclusion of the next Annual General Meeting.
The Directors have no present intention to make any such issue of
shares, other than in respect of shares that may be issued pursuant
to the Company’s share option schemes, but consider it desirable
for them to be given this opportunity by shareholders.
The Group held 22,578 treasury shares as at 14 November 2006 as
part of its obligation under the Jessops Share Incentive Plan to hold
Matching Shares on behalf of plan members, the beneficial ownership
of which will pass to eligible members three years from the date of
acquisition, subject to continuous employment and the retention of
the underlying Partnership Shares. These treasury share represented
0.023% of issued share capital, had a nominal value of £564.45 and
cost £29,313 in consideration. The Directors were given authority
to purchase treasury shares at the last Annual General Meeting and
will seek to renew that authority in Resolution 10 below. 
Disapplication of pre-emption rights (Resolution 9)
The Directors recommend that authority be obtained from shareholders
to allot ordinary shares for cash in limited circumstances in respect
of some of the shares which the Directors will be authorised to
allot pursuant to Resolution 8 described above or to sell shares held
by the Company as treasury shares otherwise than on a pre-emption
basis (as required by Section 89 of the Companies Act 1985). The
Directors recommended that Section 89 of the Companies Act 1985
should not apply to any allotment of shares or sale of treasury
shares in connection with a rights issue, open offer or any other
pre-emptive offer in favour of ordinary shareholders in accordance
with normal practice in the United Kingdom, nor to an issue for
cash of shares or sale of treasury shares of an aggregate nominal
value of up to £128,546 which is equivalent to 5% of the Company’s
current issued capital. The authority sought will expire at the
conclusion of the next Annual General Meeting. 
Directors’ report continued Jessops plc Report & Accounts 2006
25
Audit Committee report
Statement of Director’s responsibilities
The principal function of the Audit Committee is to assist the Board
in fulfilling its responsibilities to shareholders by monitoring the Group’s
internal control regime, reviewing financial reporting matters
(including accounting policies, compliance and areas of management
judgement and estimates) and the results of internal and external audit.
The Audit Committee comprised the Non-executive Directors William
Rollason and Robin Whitbread until 3rd July 2006, when Robin
Whitbread was appointed an Executive Director of the Company.
Gavin Simonds, the Company Chairman, replaced Robin Whitbread
on the Audit Committee for the rest of the year, pending the
appointment of a new Non-executive Director.
The Audit Committee Chairman is William Rollason and the Committee
meets not less than three times annually. The Executive Directors
also attend meetings by invitation and the Committee provides a
forum for reporting by the Group’s external auditors.
The Audit Committee’s terms of reference, which are available on
the corporate website at www.jessops.com, include the approval of
interim and full year financial statements, reviewing accounting
policies and the monitoring of the Group’s internal controls. 
During the year the Audit Committee has, inter alia, reviewed:
• whether, and is satisfied that, the company’s auditors, KPMG
Audit Plc, continue to be objective and independent of the Company.
KPMG Audit Plc does perform non-audit services for the Group
but the Audit Committee is satisfied that its objectivity is not
impaired by such work.
• risk and internal controls. 
• the requirement for an internal audit function and has, so far,
concluded that this is not necessary in view of the size and structure
of the Group.
• and approved the Group’s whistleblowing policy. 
• its own performance and terms of reference.
The Audit Committee met three times during the year and William
Rollason attended each meeting. Gavin Simonds attended two
meetings as an observer and one as a member. Robin Whitbread
attended two meetings as a member prior to his appointment as
an Executive Director. The Audit Committee Chairman, William
Rollason, attended the Company's Annual General Meeting on 
27 January 2006.
William Rollason, as a former Finance Director of a listed company,
is considered to have recent and relevant experience as required
under the Combined Code.
William Rollason
Chairman of the Audit Committee 
30 November 2006
The Directors are responsible for preparing the Annual Report and
the Group and parent Company financial statements, in accordance
with applicable law and regulations.  
Company law requires the Directors to prepare Group and parent
Company financial statements for each financial year. Under that
law the Directors are required to prepare the Group financial
statements in accordance with IFRSs as adopted by the EU and
have elected to prepare the parent Company financial statements
in accordance with UK Accounting Standards.  
The Group financial statements are required by law and IFRSs as
adopted by the EU to present fairly the financial position and
performance of the Group; the Companies Act 1985 provides in
relation to such financial statements that references in the relevant
part of that Act to financial statements giving a true and fair view
are references to their achieving a fair presentation.  
The parent Company financial statements are required by law to
give a true and fair view of the state of affairs of the parent Company.  
In preparing each of the Group and parent Company financial
statements, the Directors are required to:  
• select suitable accounting policies and then apply them consistently; 
• make judgments and estimates that are reasonable and prudent;  
• for the Group financial statements, state whether they have been
prepared in accordance with IFRSs as adopted by the EU;  
• for the parent Company financial statements, state whether
applicable UK Accounting Standards have been followed, subject
to any material departures disclosed and explained in the parent
Company financial statements; and
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Group and the
parent Company will continue in business.  
The Directors are responsible for keeping proper accounting records
that disclose with reasonable accuracy at any time the financial position
of the parent Company and enable them to ensure that its financial
statements comply with the Companies Act 1985. They have general
responsibility for taking such steps as are reasonably open to them
to safeguard the assets of the Group and to prevent and detect fraud
and other irregularities.  
Under applicable law and regulations, the Directors are also responsible
for preparing a Directors’ Report, Directors’ Remuneration Report
and Corporate Governance Statement that comply with that law
and those regulations.  
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company’s website.
Legislation in the UK governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions. Jessops plc Report & Accounts 2006
26
Corporate governance
Sound governance is central to achieving the Directors’ prime
objective of maximising shareholder value. Principally, it
comprises the processes by which the Group is directed and
managed, risks are identified and controlled and effective
accountability is assured. 
Combined Code
The Board has continued to futher develop and improve the compliance
associated with the individual provisions of the Combined Code on
Corporate Governance and to build on the work done in recent years,
including:
• Independent external review of the performance of the Board, its
Directors and its sub-committees.
• Review of the committee terms of reference and the matters
reserved for the Board.
• Establishing a Whistleblowing Policy.
• Reviewing and updating the Group’s Treasury Policy.
• Adopted the ICSA Code on Good Board Room Practice.
The following paragraphs give details of how the Group’s corporate
governance procedures have operated during the year:
Compliance with the Code of Best Practice
In the following respects the Company has not, during the financial
year ened 30 September 2006, complied with Sections A3.2, B2.1
and C3.1 of the Combined Code on Corporate Governance:
• On the 03 July 2006, the Company appointed Robin Whitbread as an
Executive Director. Prior to this date, Robin had been a Non-executive
Director and was both Chairman of the Remuneration Committee
and the Senior Independent Director. From this date the Company
had a Non-executive Chairman and only one Non-executive
Director and was not compliant with this provision of the Code;
• From 03 July 2006, the Audit and Remuneration Committees were
not wholly comprised of independent Non-executive Directors.
From this date to 30 September 2006, the Chairman, who is not
considered to be independent for the purposes of the Combined
Code, was a member of the Audit and Remuneration Committees.
This was because there was only one independent Non-executive
Director during that period. 
The following paragraphs give details of how the Group’s corporate
governance procedures have operated during the year:
Board of Directors
During the year, the Board of Directors has consisted of the following
Directors:
Director Role Status Date
Gavin Simonds Company Non-executive
Chairman Chairman
Derek Hine Chief  Executive Retired
Executive Director 17 May 2006
Chris Langley Chief Operating Executive Appointed 30 
Officer Director November 2005
Chris Langley Chief  Executive Appointed
Executive Director 17 May 2006
Director Role Status Date
John Crabtree Group Finance Executive
Director Director
Robin Whitbread Senior Non-executive Ceased to act as 
Independent Director Non-Executive
Director and Director 
Chairman of 3 July 2006
Remuneration
Committee
Robin WhitbreadCommercial Executive Appointed 
Director Director 3 July 2006
William Rollason Chairman of Non-executive Acting Chairman
Audit Director of Remuneration
Committee and Committee and
acting Chairman acting Senior
of Remuneration Independent
Committee and Director from
acting Senior 3 July 2006
Independent
Director
Post year end, John Crabtree resigned on retirement on 30 November
2006 and was replaced as Group Finance Director by Ian Harris, who
had been appointed to the Board as Finance Director Designate on
30 October 2006.
The Executive Directors will seek re-election on a regular basis, and
in any case within the maximum three year term, by rotation. Details
of the Chairman’s other significant committments are summarised
on page 2 of this annual report and accounts.
Board meetings
The Board held 14 Board meetings, an Annual General Meeting
(AGM) and an Extraordinary General Meeting (EGM) during the
year. Board attendance is summarised below in the following table:
Director No. of Board AGM Attended EGM Attended
Meetings
Attended
JN Crabtree 14 Yes Yes
D Hine 8 Yes –
C Langley 13 Yes Yes
W Rollason 13 Yes Yes
G Simonds 14 Yes Yes
R Whitbread 14 Yes Yes
The EGM was held after Derek Hine retired on 6 June 2006. The
resolutions requested members to approve (i) the Jessops plc 2006
Long-Term Incentive Plan and (ii) the Jessops plc Share Incentive
Plan. Both resolutions were approved by the members.
A Board Strategy Day was held immediately after the financial year
end in October 2006.
Matters Reserved for the Board
The Company maintains a Schedule of Matters Reserved for the
Board which is communicated on an annual basis to the boards of
subsidiary companies.  Jessops plc Report & Accounts 2006
27
Matters reserved for the Board include:
• Approval of the Group’s strategy and annual budget;
• Overseeing the Group’s operations to ensure competent and
prudent management, sound planning, an adequate system of
internal control, appropriate accounting, keeping of records and
compliance with statutory and regulatory obligations;
• Approval of acquisitions and divestments, major capital projects,
investments and material contracts;
• Annual review and approval of the overall levels of insurance for
the Group, including the Director’s and officers’ liability insurance
and indemnification;
• Annual review of resolutions and corresponding documents put
to shareholders, press releases and announcements concerning
matters to be decided by the Board;
• Board membership and remuneration policy for Directors and
other senior executives.
The Board reviewed the Schedule of Matters Reserved for the Board
during the year and no changes were recommended as a result of
that review.
The Company’s Schedule of Matters Reserved for the Board may be
viewed on the corporate website at www.jessops.com.
Board evaluation
An independent evaluation of the Board, its sub-committees and its
Directors was undertaken by Equity Culture Limited during September
2006. This evaluation assessed Board procedures and Board
effectiveness. The results of the evaluation concluded that the Board
and its members had provided the Group with leadership focused
on longer term strategy to ensure continuing success in a changing
competitive environment. The review recognised the need to appoint
an additional Non-executive Director but noted that this did not
appear to create an immediate impairment to the Board’s ability 
to operate effectively in the short term.   
The Board considers its Non-executive Directors have been independent
pursuant to the criteria set out in the Combined Code for the duration
of their Non-executive Directorships during the year.
Internal control
The Board is responsible for the Group’s system of internal control
and for reviewing its effectiveness. The internal control systems are
designed to meet the particular needs of the Group and to manage,
rather than eliminate, the risk of failure to achieve business objectives.
Such systems can only provide reasonable and not absolute assurance
against material misstatement or loss.
The Board delegates to executive management the day to day
responsibility for identifying, evaluating and managing the risks
facing the Group’s operations, and for implementing and maintaining
internal control systems that manage those risks in an efficient and
effective manner, appropriate to their nature and scale.
The Audit Committee, on behalf of the Board, has reviewed the
effectiveness of the Group’s system of internal control and this has
been measured against the Turnbull guidance on Internal Control,
published by the Institute of Chartered Accountants in England &
Wales in September 1999.
The Group has a certificate of registration from the British
Standards Institute confirming that the business complies with the
requirements of BS EN ISO9001:2000 for its supply chain, inventory
management and after sales service.
Nomination Committee Report
Nomination Committee membership
The members of the Nomination Committee are Gavin Simonds and
William Rollason. Gavin Simonds is the Nomination Committee Chairman
and William Rollason is an independent Non-executive Director. 
Robin Whitbread was also a member of the Nomination Committee
until his appointment as an Executive Director on 3 July 2006. 
The Nomination Committee is required to meet at least twice per
year and met 7 times in the year to 30 September 2006. Gavin Simonds
attended all 7 meetings, William Rollason attended 6 and Robin Whitbread
attended 4 meetings prior to appointment as an Executive Director. 
Role of the Nomination Committee
The principal roles and responsibilities of the Nomination
Committee are to:
• Keep under review the structure, size and composition of the Board
and its principal committees and to recommend changes thought
necessary;
• Identify and nominate to the Board candidates for appointment
to the Board;
• Be responsible for succession planning for Board members;
• Make recommendations to the Board for the continuation or
otherwise of a Director upon expiry of any specified terms of office.
The Nomination Committee’s terms of reference may be found on
the Group website at www.jessops.com.
Activities of the Nomination Committee
The key activities of the Nomination Committee during the year included:
• appointment of the Chief Operating Officer to the Board.
• succession planning for the Chief Executive’s role.
• appointment of a new Chief Executive.
• appointment of a Commercial Director to the Board.
• seeking a suitable replacement Non-executive Director. 
• succession planning for Group Finance Director’s role.
• appointment of a Finance Director Designate.
• appointment of the Group Company Secretary.
Individuals were recommended by the Nomination Committee for
these posts on the basis of their having suitable skills and
experience to fulfill the roles described. 
The Board accepted the Nomination Committee’s recommendations,
leading to the appointment of Chris Langley as an Executive Director on
30 November 2006 and his further appointment as Chief Executive on
17 May 2006. Robin Whitbread, formerly a Non-executive Director of the
Company, was appointed Commercial Director on 3 July 2006 and
Ian Harris Finance Director Designate on 30 October 2006. Nick Molyneux
was appointed Group Company Secretary on 30 November 2005. 
Although Robin Whitbread was member of the Nomination Committee
in his capacity as a Non-executive Director, he played no part in the
Nomination Committee deliberations which led the Nomination
Committee to recommend him for the post of Commercial Director.  
Using the results from the independent evaluation of the Board, its
sub-committees and its Directors, the Nomination Committee reviewed
the structure, size and composition of the Board and noted that a
third Non-executive Director was required to replace Robin Whitbread.
The Nomination Committee also reviewed its own performance and
its terms of reference. No changes to the terms of reference were
recommended.
The Nomination Committee Chairman, Gavin Simonds, attended
the Company’s Annual General Meeting on 27 January 2006. 
The Nomination Committee is satisified that Gavin Simonds, the 
Non-executive Director seeking re-election, and Ian Harris, the Executive
Director seeking re-appointment at the forthcoming Annual General
Meeting, are both qualified for re-election and re-appointment respectively
by virtue of their skills, experience and contribution to the Board.
During the course of the year, the Nomination Committee has made use
of external advisers in seeking candidates for senior posts during the year.
The Nomination Committee continues to seek a suitable Non-executive
Director to act as Chairman of the Remuneration Committee.
Corporate governance continued Jessops plc Report & Accounts 2006
28
Remuneration Committee report
This report has been prepared in accordance with The Directors’
Remuneration Report Regulations 2002, (the “Regulations”).
The report also meets the relevant requirements of the Listing
Rules of the Financial Services Authority and describes how
the Board has applied the Principles and complied with the
provisions of the revised Combined Code (the “Code”) on
Corporate Governance relating to Directors’ remuneration.
As required by the Regulations, an advisory resolution to
approve the report will be proposed at the AGM of the
Company at which the financial statements will be approved.
The auditors are required to report on the ‘auditable’ part of
this report and to state whether, in their opinion, that part
of the report has been properly prepared in accordance with
the Companies Act 1985 (as amended by the Regulations).
The report is therefore divided into separate sections for
audited and unaudited information. 
Part 2 of the Regulations - Unaudited Information
Remuneration Committee 
The independent Non-executive Directors who were members of the
Committee during the year were Robin Whitbread (Chairman of the
Committee until resigning on 3 July 2006 to become the Commercial
Director) and William Rollason (who was appointed Chairman of the
Committee on 3 July 2006). Gavin Simonds attended Committee
meetings at the invitation of the Chairman of the Committee (but
not as a member) before being appointed to the Committee on 
3 July 2006 as an interim measure while the Company sought a second
independent Non-executive Director. The Company recognises that
it does not comply with the Code from 3 July in not having a minimum
of two independent Non-executive Directors on the Committee.
However, the Board is actively seeking another Non-executive Director
who will sit on the Remuneration Committee when appointed.
The responsibility for the establishment of a remuneration policy
and its cost is a matter for the full Board, on the advice of the
Remuneration Committee. The recommendations of the Remuneration
Committee have been approved without amendment by the Board
for submission to shareholders. The Remuneration Committee is
responsible for developing policy on remuneration for Executive
Directors and senior management and for determining specific
remuneration packages for each of the Executive Directors. The
Remuneration Committee members have no personal financial
interest other than as shareholders in matters to be decided, no
potential conflicts of interests arising from cross directorships and
no day-to-day involvement in running the business. 
During the period under review, the Remuneration Committee sought
the assistance of the Chief Executive and Company Secretary on
matters relating to Directors’ performance and remuneration. The
Chief Executive attends meetings by invitation except when his
remuneration arrangements are discussed. No Director takes part in
discussions relating to their own remuneration and benefits. The
Remuneration Committee appointed and received wholly independent
advice on Executive compensation and associated share scheme
administration from Halliwell Consulting. No other services were
provided to the Company by Halliwell Consulting during the year.  
The Remuneration Committee is formally constituted with written
terms of reference with the full remit of the Committee role described.
A copy of the terms of reference is available to shareholders on the
Company’s website, www.jessops.com. The Remuneration Committee
met 5 times during the year. Robin Whitbread attended two meeting
as Committee Chairman. William Rollason attended two meetings
as a committee member and three meetings as Committee Chairman.
Gavin Simonds attended two meetings as an invited observer and
three meetings as a member.
Philosophy behind Remuneration Committee’s Approach
The policy is designed to encourage, reward and retain the Executives
and the Remuneration Committee believes that shareholders’ interests
are best served by remuneration packages which have a large emphasis
on performance related pay. Emphasis on performance should
encourage Executives to focus on delivering the business strategy and
providing meaningful incentives to executives ensure that the appropriate
balance between fixed and performance related pay is maintained.
Remuneration Policy 
The Remuneration Committee developed a new remuneration
policy during 2006 which was formally approved by shareholders at
an EGM on 6 June 2006. As part of this new policy two new share
plans were approved by shareholders:-
• Jessops plc 2006 Long-Term Incentive Plan (the ‘LTIP’); and 
• Jessops plc Share Incentive Plan (the ‘SIP’).
Therefore, the Remuneration Committee is confident that the LTIP’s
proposed operation, including grant levels, performance criteria and
release schedules remain appropriate for the 2006/2007 financial year.
The following table summarises the policy applying prior to 6 June
2006 and the new policy approved by shareholders at the EGM on
this date. This new policy will apply for the 2006/2007 financial year.
Policy Salary Bonus Potential Share Incentives Pension All Employee 
Incentives
Prior to 6 June Median to UQ Median Lower Quartile Median SAYE
Post 6 June Median Median Median to UQ Median SIP
Basis of Change To move the balance The Bonus Potential To move the balance No change The Committee felt 
of the package more of 75% of salary of the package more that it was appropriate
in favour of remains the same in favour of to implement an all
performance for 2006/2007 performance employee whole share 
financial year plan in conjunction
new LTIP Jessops plc Report & Accounts 2006
29
The Remuneration Committee will continue to review on an annual
basis whether the policy remains appropriate for the relevant financial
year. Factors taken into account by the Remuneration Committee
will include:-
• market conditions affecting the Company;
• the recruitment market in the Company’s Sector;
• changing market practice;
• changing views of institutional shareholders and their
representative bodies. 
In line with this general review the Committee will specifically consider
how the Company’s new Long-Term Incentive Plan will be operated
in future years. In particular the Committee will consider:-
• the continued effectiveness of the Plan;
• compliance with the latest guidelines issued by organisations such
as the ABI; and
• alignment of interests and continued contribution to shareholder value.
Where an Executive Director has only served part of the year his
compensation has been annualised to allow a comparison to be
made with both his colleagues in the Company and his peers in the
Comparator Group. The Comparator Group used by the Committee
for benchmarking executive remuneration is drawn from the General
Retailers Sector (current constituents were set out in the EGM
Circular). It is the current intention of the Committee to use the
same Group for benchmarking in the 2006/2007 financial year.
Balance between Fixed & Performance Based Compensation
The table below demonstrates the balance between fixed and variable
performance based compensation for the Executive Directors for
the year ended 30th September (where a partial year has been
served the figures have been annualised):
R Whitbread JN Crabtree C Langley
Fixed 42% 41% 34%
Variable 58% 59% 66%
Key: Fixed compensation is calculated as:- Salary, benefits
Potential Performance Compensation is calculated as:-
Bonus available, fair market value of LTIP , fair market value of options
Remuneration report continued
Elements of Executive Directors’ Remuneration
Basic Salary
• Policy Prior to EGM:- Median to Upper Quartile
• Policy Post EGM:- Median
The Remuneration Committee stated in the Notice of EGM and Circular its intention to look to the annual bonus and the LTIP to provide
increased compensation opportunities based on the Company’s short and long-term performance. Therefore the salary policy position was
reduced from median to upper quartile to median on shareholder approval at the EGM. The Remuneration Committee has determined to
make no rises in the salaries for the Executive Directors as part of the 2006/2007 review. The following table sets out:-
• 2005/2006 and 2006/2007 salaries; and
• the annual salaries for the relevant position in the Comparator Group:-
Name 2005/6 & 2006/7 Upper Quartile in Median in
AnnualSalary Comparator Group Comparator Group
C Langley Chief Executive £250,000 £375,000 £252,000
JN Crabtree Group Finance Director £220,000 £240,000 £201,000
R Whitbread Commercial Director £185,000 £240,000 £201,000
When determining the salary of the executives the Committee takes into consideration:-
• the levels of base salary for similar positions with comparable status, responsibility and skills, in organisations of broadly similar size and
complexity, in particular the median salary levels of those comparable companies within the sector and the Comparator Group;
• the performance of the individual Executive Director; 
• the individual Executive Director's experience and responsibilities; and
• pay and conditions throughout the Company. Jessops plc Report & Accounts 2006
30
Annual Performance Related Bonus
• Policy Prior to EGM:- Median
• Policy Post EGM:- Median
Bonus payments are not pensionable. The following tables summarise the main features of the Company’s executive bonus plan. The
maximum bonus potential for 2006/2007 will remain at 75% of salary.
Bonus C Langley JN Crabtree R Whitbread
Maximum Annual Bonus Potential (%age of Salary)
Company 75% 75% 75%
Upper Quartile 100% 100% 100%
Median 100% 100% 85%
2005/6 Bonus Paid (& as %age of Salary) £75,000 £66,000 £13,500
(30%) (30%) (7.3%
1
)
Median Bonus Payments in the Comparator Group as a %age of Salary 49% 47% 47%
References to quartiles are to quartiles in the Comparator Group.
The bonuses for 2005/2006 have been paid on the basis of the level of the satisfaction of the performance tragets. The principal
performance targets giving rise to the Executive Directors' performance bonuses for 2005/2006 were:
(i) successful achievement of Budgeted Net Profit which satisifed 20% of the maximum bonus potential and earned 15% of salary.
(ii) successful achievement of Budgeted Cash Flow which satisfied a further 20% of the maximum bonus potential and earned a further
15% of salary.
The remaining 60% of the maximum bonus potential, which was not achieved, related to out-peformance of the budget. In total, the successful
achievement of the two principal performance targets detailed above earned a total performance bonus of 30% of salary.
Share Incentives
Policy Prior to EGM:- Lower Quartile
Policy Post EGM:- Median to Upper Quartile
The Remuneration Committee's policy approved at the EGM is to provide annual share grants to executives at the median to upper quartile
level compared to the Comparator Group. Share incentives, excluding all employee plans, are provided to the executives solely through the
LTIP. No further grants will be made under any other discretionary share plan following approval of the LTIP at the EGM on 6 June 2006. 
Long-Term Incentive Plan
The following table summarises the main features of the LTIP , its operation during 2005/2006 and its proposed operation during 2006/2007:-
Maximum Annual Grant Face Value
2
as %age of Salary & Performance Condition
Maximum Annual Grant 200%. Details of Awards are on page 35
None of the LTIP Award will be released at the end of the three year holding period unless the Company’s TSR is at least at the median
compared to the constituents of the TSR Comparator Group. 50% of the 2005/6 Award is subject to the Company’s performance against
the TSR Comparator Group. 50% of the 2005/6 Award is subject to the average annual EPS growth of the Company.
TSR Comparator Group Average Annual EPS Growth
Quartile %ge of Award EPS Growth %age of Award
<Median 0% <RPI+5% 0%
Median 20%* RPI+5% 20%*
Upper Quartile 100%* RPI+10% 100%*
*Straight line release between points
The Remuneration Committee will be applying the same performance conditions for Awards made under the Plan in the 2006/2007
financial year, however due to the lower level of grant proposed, 25% of the award made to Executive Directors will be released for
median performance in line with other participants in the LTIP.
1
Annualised the level bonus paid as a percentage of salary would also be 30%.
2
For awards under the LTIP face value is the aggregate market value of the shares subject to the award at the date of grant.
Remuneration report continued Jessops plc Report & Accounts 2006
31
C Langley JN Crabtree R Whitbread
(%age of Salary & FMV) (%age of Salary & FMV) (%age of Salary & FMV)
Face Value of LTIP award granted by the Company 200% 120% 120%
as %age of Salary & FMV
3
(£325,425) (£171,824) (£144,488)
Total Face Value of Share Incentives granted as %age of 114% 112% 112%
Salary & FMV at the Upper Quartile in the Comparator Group (£286,000) (£141,000) (£141,000)
Executive Shareholding Requirement
4
as a %age of Salary 150% 100% 100%
(current shareholding in  brackets
5
) ( 15%) ( 927%) ( 14%)
Proposed Grants for 2006/2007 Face Value as a %age of Salary 150% 100% 100%
It should be noted that the real value received by the Executive Directors under the share incentive arrangements will be dependent upon
the degree to which the associated performance conditions have been satisfied at the end of the three year performance period and the
share price of the Company at this time.
Basis of Performance Condition Selection & Measurement
The Remuneration Committee took the following factors into account when deciding the appropriate EPS performance condition for the
2005/2006 awards:-
• the median and upper quartile historic levels of EPS growth for the Comparator Group companies; and
• the projected EPS growth for the Company provided by external analysts.
It is the view of the Committee that EPS is an appropriate performance condition for part of the awards granted under the LTIP because:-
• EPS growth is one of the key performance indicators for companies in the General Retailers Sector;
• it is directly linked to the performance of the Company and the influence of the Executive Directors; and
• the P&L cost of this part of the award will only be taken if a benefit is provided to the Executive Directors which will also mitigate the
overall cost to the Company of the awards.
Comparative TSR was selected as the performance condition for part of the awards granted by the Remuneration Committee as it ensures
that the Executives have outperformed their peers over the measurement period in delivering shareholder value before being entitled to
receive any of their awards irrespective of general market conditions. Prior to release, the Remuneration Committee will also ensure that
the underlying financial performance of the Company is consistent with its TSR performance.  The Remuneration Committee will provide a
full explanation and justification at the time of the release of the element of the award subject to TSR and why it believes that the
underlying financial performance of the Company is consistent with this TSR performance.
The Remuneration Committee determines whether the performance conditions for share awards or options are satisfied. Where the
performance requirements are based on EPS, the Committee will use the principles behind the audited figures disclosed in the Company's
financial statements, and may take advice from independent advisors as to whether any adjustments are required to ensure consistency in
accordance with the terms of the performance conditions.  Where the performance measure is Total Shareholder Return, Halliwell
Consulting, the Remuneration Committee's advisors shall calculate the TSR in accordance with the rules of the LTIP and sign-off these
figures prior to the release of any award.
Option Scheme
The following table summarises the main features of the Option Scheme and its operation during 2005/2006 and previous financial years.
It should be noted that on the adoption of the LTIP no future grants will be made under this Scheme.
Maximum Annual Grant Face Value
6
as %age of Salary & Performance Condition
Maximum Annual Grant 100%. Details of Awards are on page 34
No options will be exercisable unless the Company’s EPS growth over the three year performance period is RPI+5% p.a. with full vesting of
the options for EPS growth of RPI+10%p.a.
C Langley
(%age of Salary & FMV)
Face Value
6
of Options granted by the Company as %age of Salary & FMV
7
18%
(£15,488)
The Company operates all its share plans within the ABI limits on shareholder dilution.
3
Fair Market Value (“FMV”) for an award under the LTIP is based on the value of the shares at the date of grant discounted to take into account the
probability of the performance conditions being satisfied.
4   
The Remuneration Committee is keen to encourage Executive Directors and other members of the executive management group to build significant
shareholdings in the Company in relation to their remuneration.  A shareholding requirement was therefore introduced in 2006 which will ensure that over
a 5 year period a minimum holding is built up by all members of the executive management group.
5   
This is calculated using current salary and the share price of the Company on 29th September 2006 (£1.295).
6   
Face Value for an option is the number of shares multiplied by the exercise price. 
7   
Fair Market Value (“FMV”) for option is calculated using an option pricing model.
Remuneration report continued Jessops plc Report & Accounts 2006
32
Pension
• Policy Prior to EGM: - Median
• Policy Post EGM: - Median
JN Crabtree participated in a defined benefit scheme with additional benefits provided through contributions to a money purchase scheme.
The other Executives participated solely in a money purchase scheme (full details of the Executive’s pension entitlements are contained in
the audited section of this report). No Executive has received any compensation for the change in pension legislation on 6 April 2006.
Further the overall cost to the Company of the Executives pension provision has remained the same.
Benefits in Kind
• Policy Prior to EGM: - Market Practice
• Policy Post EGM: - Market Practice
The Company provides standard market practice benefits for Executives including the provision of a car allowance, medical and life
assurance, permanent health insurance and a staff discount.
Total Compensation
• Policy Prior to EGM: - Median to Upper Quartile (depending upon performance)
• Policy Post EGM: - Median to Upper Quartile (depending upon performance) 
The following table shows the value of each of the main elements of the remuneration package provided to the Executive Directors during
the year ended 30th September 2006 (where a partial year has been served the figures have been annualised). It should be noted that the
FMV of LTIP awards (and options) are not the value that will be received by the Executives but represent the accounting cost to the
Company of providing these share incentives under IFRS2
8
and therefore represent the ‘cash value’ of those grants at the date of grant. The
FMV calculation is based on a series of assumptions and may not equate to the actual value received by the Executive Directors on release.
In addition, no benefit under the LTIP or option grant will be provided unless the attached performance conditions are satisfied and will
also depend on the share price on release.
Name Salary Bonus Benefits Total FMV Total Total
£000’s Payable (excl. Payment LTIP Actual in 2005
£000’s pension) (£000’s) (and & FMV CG at 
£000’s Option) £000’s Median
£000’s to Upper
Quartile
£000’s
C Langley Chief Executive 250 75 22 347 341 688 653
JN Crabtree Group Finance Director 220 66 17.5 304 172 476 484
R Whitbread Commercial Director 185
9
54
10
21
11
260 145 405 484
8
International Accounting Standard dealing with the expensing of share incentives.
9
The actual salary and fees paid was £76,250. The £185,000 is the annualised figure to allow a comparison to be made.
10
The actual bonus paid was £13,500. £54,000 is the annualised figure to allow a comparison to be made.
11
The value of the actual benefits provided during FY2005/2006 was £5,329. The figure in the table is the annualised value.
Other Remuneration Matters
All Employee Share Arrangements
The following table summarises the main features of the Company’s all employee share arrangements and their current status:-
Name Status Eligibility Main Features
12
The Jessops plc Share Incentive Plan.
13
The Jessops plc Sharesave Scheme.
Remuneration report continued
SIP
12
Operated during 2005/2006
and will be operated for
2006/2007.
All employees of the
Company including the
Executive Directors.
The Plan provides employees with the opportunity of purchasing
£1,500 of shares a year out of pre-tax salary and providing
additional matching shares on a 1:1 ratio. These matching shares
will be normally released three years after they have been
awarded provided that the associated shares purchased by the
employee have been retained and provided the employee is still
employed by a Group Company at this time. 
Sharesave 
Scheme
13
The last invitations under this
Scheme were issued on 
12 January 2006. It is not
currently intended to operate
the Plan in the future.
All employees of the
Company including the
Executive Directors.
Options are granted over Company shares at a discount of up to
20% of the market value on the date of grant, which subject to
the satisfaction of conditions can be exercised after either three
or five years. Jessops plc Report & Accounts 2006
33
New Appointment
Ian Harris was appointed as Finance Director Designate on 30 October 2006 to replace John Crabtree on his retirement on 30 November
2006. Ian Harris will have the same bonus potential and levels of share incentive grant as the previous incumbent. Ian Harris' service
contract provides for a notice period of 12 months.The following table summaries the main elements of his compensation package for
2006/2007:-
Name Salary Bonus Potential Company Pension Initial LTIP Award 
£000’s (%age of Salary) Contribution (%age of Salary)
(%age of Salary)
I Harris Group Finance Director 185 75% 10% 120%
Executive Directors’ Contracts 
Details of the service contracts of the Executive Directors of the Company are as follows: 
Name Company notice Contract date Unexpired term Potential 
period of contract termination
payment
C Langley Chief Executive 12 months 30.11.05 Rolling contract 12 months salary
JN Crabtree Group Finance Director 12 months 28.10.04 Rolling contract 12 months salary 
R Whitbread Commercial Director 12 months 03.07.06 Rolling contract 12 months salary 
All Executive Directors’ contracts provide for a maximum notice of 12 months’ written notice. This arrangement is in line with best
corporate practice for listed companies. In the event of the termination of an Executive’s contract, salary and benefits will be payable during
the notice period. All Executive Directors will be expected to mitigate their loss in accordance with general legal principles in the event of
their cessation of employment. The Remuneration Committee will ensure that there have been no unjustified payments for failure on an
Executive Director’s termination of employment. There are no special provisions in the contracts of employment extending notice periods on
a change of control, liquidation of the Company or cessation of employment. 
Non-executive Directors Fees
• Policy Prior to EGM: - Median 
• Policy Post EGM: - Median 
The remuneration of the Non-executive Directors is determined by the Board based upon recommendations from the Chairman and Chief
Executive (or, in the case of the Chairman, based on recommendations from the Senior Independent Non-executive Director and the Chief
Executive) and is within the limits set by the Articles of Association. There are no proposed rises in the fees for 2006/2007.
Name Fees 2005/2006  Unexpired Term Notice Period
& 2006/2007
G Simonds Chairman £105,000 13 months 1 month
W Rollason Non-executive Director £41,250 13 months 1 month
Non-executive Directors do not participate in any bonus plan or share incentive programme operated by the Company and are not entitled
to pension contributions or other benefits provided by the Company. The Non-executive Directors do not have service contracts, but their
appointments are for fixed-terms of three years, subject to the terms of the Company’s Articles of Association, the Companies Act and
shareholder approval.
Total Shareholder Return Performance Graph
The graph shows the Company’s performance, 
measured by total shareholder return (TSR),
compared with the constituents of the FTSE 
General Retailers Sector since flotation of the 
Company. The Remuneration Committee 
believes that the Sector is the most appropriate 
comparison for the Company consisting as it 
does of all the major high street retailers. It is 
also the Comparator Group for awards made 
under the Company’s new LTIP. 
Remuneration report continued
Jessops TSR performance v FTSE General Retailers
40.00
50.00
60.00
70.00
80.00
90.00
100.00
110.00
120.00
130.00
Nov-
04
Dec-
04
Jan-
05
Feb-
05
Mar-
05
Apr-
05
May-
05
Jun-
05
Jul-
05
Aug-
05
Sep-
05
Oct-
05
Nov-
05
Dec-
05
Jan-
06
Feb-
06
Mar-
06
Apr-
06
May-
06
Jun-
06
Jul-
06
Aug-
06
Sep-
06
Jessops (TSR) FTSE Gen. Retailers Jessops plc Report & Accounts 2006
34
Part 3 of the Regulations - Audited Information
This section of the Remuneration Committee report has been audited. The emoluments in respect of qualifying services and compensation
of each person who served as a Director during the year were as follows:
Salary & fees Bonus Benefits 2006 Total 2005 Total
DL Hine
14
£171,436 – £18,181 £189,617 £314,591
C Langley
15
£227,446 £75,000 £22,176 £324,622 £178,714
JN Crabtree £219,193 £66,000 £17,593 £302,786 £253,609
G Simonds
16
£105,000 – – £105,000 £96,250
W Rollason
17
£41,250 – – £41,250 £40,000
R Whitbread
18
£76,250 £13,500 £5,329 £95,079 £15,757
£840,575 £154,500 £63,279 £1,058,354 £898,921
14
Derek Hine retired on 17 May 2006.  
15
Chris Langley was appointed an Executive Director on 30 November 2005 and Chief Executive on 17 May 2006. 
16
Gavin Simonds received no increase in fees during the year. The comparative for 2005 reflects his appointment one month into that financial year.
17
William Rollason received an increase in fees during the year, reflecting his additional role of acting Remuneration Committee chairman.
18
Robin Whitbread was a Non-executive Director until 3 July 2006 when he was appointed an Executive Director. £30,000 relates to his fees as a Non-executive
Director and £46,250 to his salary as an Executive Director.
Pensions in the year to 30 September 2006
The Company provides pension entitlements to Directors that are defined benefit in nature. Details of the entitlements of those who served
as Directors during the year are as follows:
Accrued benefit  Increase in Increase in Transfer value Transfer value Increase in 
at 30   accrued benefits accrued benefits  of accrued  of accrued transfer value
September excluding including benefits at benefits at less Directors’ 
2006 inflation inflation 1 October 2005 30 September contributions
2006
JN Crabtree £34,993 £3,388 £4,486 £468,114 £569,456 £51,233
Details of the pension policy are provided in the first part of the report.
Derek Hine, Chris Langley and Robin Whitbread are members of money purchase schemes.
Contributions to Money Purchase Schemes:
Contributions to Money Purchase Schemes
DL Hine £27,718
C Langley £19,500
R Whitbread £3,083
In the year to 30 September 2005, £7,736 of pension contributions remained unpaid at the year end, all of which related to Derek Hine.
Options
Details of Ordinary Share options of those Executive Directors who served during the year were:
Director Awarded Date of Grant Exercise Price Earliest date of Exercise Expiry Date
DL Hine 307,957 2 November 2004 155p 2 November 2007 2 November 2014
J Crabtree 247,312 2 November 2004 155p 2 November 2007 2 November 2014
C Langley 109,375 9 February 2005 160p 9 February 2008 9 February 2015
C Langley 56,962 15 December 2005 79p 15 December 2008 15 December 2015
The details of the performance condition applying to all subsisting options is set out in the first part of this report.
Sharesave Options
Details of Sharesave Ordinary Share options of those Executive Directors who served during the year were:
Director Awarded Date of Grant Exercise Price Earliest date of Expiry Date
Exercise
C Langley 11,466 8 February 2006 81.54p 1 March 2009 31 August 2009
Further details on the Sharesave Scheme can be found in the first part of this report.
Remuneration report continued Jessops plc Report & Accounts 2006
35
Long-Term Share Incentive Plan
Approved by shareholders on 6 June 2006.
Details of awards over Ordinary Shares of those Executive Directors who served during the year were:
Director Awarded Date of Grant Share Price on Date of Release
Date of Grant
C Langley 444,444 03 July 2006 112.5p 03 July 2009
J Crabtree 234,666 03 July 2006 112.5p 03 July 2009
R Whitbread 197,333 03 July 2006 112.5p 03 July 2009
The details of the performance conditions applying the grant of awards are set out in the first part of this report.
Inland Revenue Approved Share Incentive Plan
Approved by shareholders on 6 June 2006
2005/2006
Further details on the Plan can be found in the first part of the report. Partnership shares were acquired at a price of 129.5 pence on 29
September 2006. 
The following table sets out those shares acquired under the Plan by Executive Directors after 30 September 2006:-
Director Number of Partnership Number of Matching Date of Purchase  Price Partnership 
Shares purchased Shares awarded Shares purchased
C Langley 94 94 31 October 2006 133.50p
C Langley 97 97 30 November 2006 128.25p
The market price at the end of the year was 129.5 pence per share. The highest price during the year was 139.0 pence and the lowest was
93.5 pence.
By order of the Board
William Rollason
Remuneration Committee Chairman
Remuneration report continued
C Langley
J Crabtree
R Whitbread
96
1,158
1,158
96
1,158
1,158
Number of Partnership
Shares purchased
Number of Matching
Shares awarded Jessops plc Report & Accounts 2006
36
Independent Auditors’ report to the
members of Jessops plc
We have audited the group and parent company financial statements
(the ‘‘financial statements’’) of Jessops plc for the year ended 30
September 2006 which comprise the Consolidated Income Statement,
the Consolidated and Parent Company Balance Sheets, the Consolidated
Cash Flow Statement, the Consolidated Statement of Recognised
Income and Expense and the related notes. These financial
statements have been prepared under the accounting policies set
out therein. We have also audited the information in the Directors’
Remuneration Report that is described as having been audited.
This report is made solely to the company’s members, as a body, in
accordance with section 235 of the Companies Act 1985. Our
audit work has been undertaken so that we might state to the
company’s members those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company and the company’s members as
a body, for our audit work, for this report, or for the opinions we
have formed. 
Respective responsibilities of directors and auditors 
The directors’ responsibilities for preparing the Annual Report and
the group financial statements in accordance with applicable law
and International Financial Reporting Standards (IFRSs) as adopted
by the EU, and for preparing the parent company financial
statements and the Directors’ Remuneration Report in accordance
with applicable law and UK Accounting Standards (UK Generally
Accepted Accounting Practice) are set out in the Statement of
Directors’ Responsibilities on page 25. 
Our responsibility is to audit the financial statements and the part
of the Directors’ Remuneration Report to be audited in accordance
with relevant legal and regulatory requirements and International
Standards on Auditing (UK and Ireland). 
We report to you our opinion as to whether the financial
statements give a true and fair view and whether the financial
statements and the part of the Directors’ Remuneration Report to
be audited have been properly prepared in accordance with the
Companies Act 1985 and, as regards the group financial
statements, Article 4 of the IAS Regulation. We also report to you
whether in our opinion the information given in the Directors’
Report is consistent with the financial statements. In addition we
report to you if, in our opinion, the company has not kept proper
accounting records, if we have not received all the information and
explanations we require for our audit, or if information specified by
law regarding directors’ remuneration and other transactions is not
disclosed.
We review whether the Corporate Governance Statement reflects
the company’s compliance with the nine provisions of the 2003
Combined Code specified for our review by the Listing Rules of the
Financial Services Authority, and we report if it does not. We are not
required to consider whether the board’s statements on internal
control cover all risks and controls, or form an opinion on the
effectiveness of the group’s corporate governance procedures 
or its risk and control procedures. 
We read the other information contained in the Annual Report and
consider whether it is consistent with the audited financial statements.
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 and the
part of the Directors’ Remuneration Report to be audited. It also
includes an assessment of the significant estimates and judgments
made by the directors in the preparation of the financial statements,
and of whether the accounting policies are appropriate to the group’s
and company’s circumstances, consistently applied and adequately
disclosed.
We planned and performed our audit so as to obtain all the information
and explanations which we considered necessary in order to provide us
with sufficient evidence to give reasonable assurance that the financial
statements and the part of the Directors’ Remuneration Report to
be audited are free from material misstatement, whether caused by
fraud or other irregularity or error. In forming our opinion we also
evaluated the overall adequacy of the presentation of information
in the financial statements and the part of the Directors’ Remuneration
Report to be audited. 
Opinion
In our opinion: 
• the group financial statements give a true and fair view, in
accordance with IFRSs as adopted by the EU, of the state of the
group’s affairs as at 30 September 2006 and of its profit for the
year then ended; 
• the group financial statements have been properly prepared in
accordance with the Companies Act 1985 and Article 4 of the 
IAS Regulation;
• the parent company financial statements give a true and fair
view, in accordance with UK Generally Accepted Accounting
Practice, of the state of the parent company’s affairs as at 
30 September 2006; 
• the financial statements and the part of the Directors’ Remuneration
Report to be audited have been properly prepared in accordance
with the Companies Act 1985; and 
• the information given in the Directors’ Report is consistent with
the financial statements.
KPMG Audit Plc 
Chartered Accountants 
Registered Auditor, 1 Waterloo Way, 
Leicester, LE1 6LP
30 November 2006 Jessops plc Report & Accounts 2006
37
Consolidated income statement 
For the year ended 30 September 2006
2006 2005
Note £000 £000
Revenue 1 350,044 327,381
Cost of sales (234,841) (222,884)
Gross profit 115,203 104,497
Operating expenses 3 (95,220) (86,705)
EBITDA* 27,120 23,424
Depreciation and amortisation (7,137) (5,632)
Operating profit 2 19,983 17,792
Finance costs - ongoing 5 (4,034) (4,863)
- one off 5 – (3,920)
Finance income 5 1,059 874
Profit before taxation 17,008 9,883
Taxation 6 (5,746) (3,628)
Profit for the period 11,262 6,255
Earnings per ordinary share - basic 8 11.0p 6.4p
Earnings per ordinary share - diluted 8 10.9p 6.4p
All activities relate to continuing operations. All profit is attributable to equity shareholders.
*  Earnings before interest, tax, depreciation and amortisation Jessops plc Report & Accounts 2006
38
Consolidated statement of recognised
income and expense 
For the year ended 30 September 2006
2006 2005
£000 £000
Actuarial gain recognised in the pension scheme 1,232 509
Deferred tax on actuarial gain in the pension scheme (370) (151)
Foreign exchange translation differences 2 –
Net income and expense recognised directly in equity 864 358
Profit for period 11,262 6,255
Total recognised income and expense for the period 12,126 6,613
All recognised income and expense is attributable to equity shareholders. Jessops plc Report & Accounts 2006
39
Consolidated balance sheet
At 30 September 2006
2006 2005
Note £000 £000
Non current assets
Goodwill 9 77,064 77,014
Intangible assets 9 9,107 9,393
Property, plant and equipment 10 36,921 31,808
Deferred tax assets 18 2,557 3,050
125,649 121,265
Current Assets
Inventories 11 61,853 56,429
Trade and other receivables 12 13,466 11,450
Current tax receivable 105 –
Cash and cash equivalents 13 – 4,809
75,424 72,688
Current liabilities
Bank overdrafts and borrowings 15 (13,749) (15,500)
Other borrowings 15 (1,291) –
Obligations under finance leases 16 (21) (21)
Trade and other payables 14 (56,043) (48,552)
Current tax liabilities – (423)
(71,104) (64,496)
Net current assets 4,320 8,192
Non current liabilities
Borrowings 15 (19,717) (28,416)
Obligations under finance leases 16 (100) (121)
Retirement benefits obligations 25 (8,304) (10,166)
Deferred tax liabilities 18 (2,962) (1,942)
(31,083) (40,645)
Net assets 98,886 88,812
Equity
Issued capital 20 2,571 2,571
Share premium 22 89,161 89,161
Retained earnings 22 7,152 (2,920)
Translation reserve 22 2 –
Total equity attributable to equity shareholders of the parent 98,886 88,812
The financial statements on pages 37 to 61 were approved by the Board of Directors on 30 November 2006 and were signed on its behalf by:
Chris Langley John Crabtree
Chief Executive Finance Director Jessops plc Report & Accounts 2006
40
Consolidated cash flow statement 
For the year ended 30 September 2006
2006 2005
Note £000 £000
Cash flows from operating activities
Profit before taxation 17,008 9,883
Adjusted for:
Finance income (1,059) (874)
Financing costs 4,034 4,863
One off financing costs arising on flotation – 3,920
Depreciation and amortisation 7,137 5,632
Share-based payment expense 186 121
Exchange difference 4 –
Loss / (profit) on disposal of property, plant and equipment 2 (227)
Pension contributions in excess of charge (927) (407)
Operating cash flows before movement in working capital 26,385 22,911
Increase in stocks (5,402) (14,001)
Increase in debtors (2,016) (910)
Increase in creditors 7,338 6,084
Decrease in provisions – (664)
Cash generated by operations 26,305 13,420
Taxes paid (5,104) (2,722)
Interest paid (2,433) (15,717)
Net cash from operating activities 18,768 (5,019)
Cash flows from investing activities
Proceeds on disposal of property, plant and equipment 64 828
Acquisition of property plant and equipment (10,610) (7,999)
Acquisition of intangible assets (1,397) (2,828)
Acquisition of business (97) –
Net cash from investing activities (12,040) (9,999)
Cash flows from financing activities
Proceeds from the issue of share capital – 90,743
Proceeds from new bank loan – 34,541
Repayment of borrowings (5,500) (116,958)
Repayment of finance lease liabilities (21) (9)
Purchase of own shares (54) –
Dividends paid (2,211) (720)
Net cash from financing activities (7,786) 7,597
Net decrease in cash and cash equivalents (1,058) (7,421)
Cash and cash equivalents at the beginning of the period (5,191) 2,230
Cash and cash equivalents at the end of the period 13,17 (6,249) (5,191) Jessops plc Report & Accounts 2006
41
Accounting policies
Jessops plc is a company incorporated in England and Wales.
Basis of preparation
The consolidated financial statements for the year ending 30 September
2006 have been prepared and approved by the Directors in accordance
with International Financial Reporting Standards (IFRS), as adopted
by the EU (‘Adopted IFRSs’) and those parts of the Companies Act
1985 applicable to companies reporting under IFRS.
The consolidated financial statements are prepared on the historical
cost basis except for derivative financial instruments which are stated
at their fair value. The accounts are presented in pounds sterling,
rounded to the nearest thousand.
The preparation of financial statements in conformity with generally
accepted accounting principles requires the use of certain critical
accounting estimates. It also requires management to exercise its
judgement in the process of applying the Group’s accounting
policies. Although these judgements and estimates are based on
management’s best knowledge of the amount, event or actions,
actual results may ultimately differ from these.
The Company has elected to prepare its parent company financial
statements in accordance with UK GAAP; these are presented on
pages 62 to 65
The accounting policies set out below, unless otherwise stated,
have been applied consistently to all periods presented in these
Group financial statements and in preparing an opening IFRS balance
sheet at 1 October 2004 for the purpose of the transition to IFRS.
Transition to Adopted IFRSs
The Group is preparing its financial statements in accordance with
Adopted IFRSs for the first time and consequently has applied IFRS1.
An explanation of how the transition to Adopted IFRSs has affected
the previously reported financial position and performance of the
Group is provided in note 26.
IFRS 1 – First Time Adoption of IFRS – establishes the transitional
requirements for the preparation of financial statements in accordance
with IFRS for the first time. The general principle is to establish
accounting policies under IFRS then to apply these retrospectively at
the date of transition to determine the opening balance sheet. IFRS
1 permits a number of first time adoption exemptions. The exemptions
which the Group has elected to take are detailed below:
a) Business combinations: The Group has elected not to apply
IFRS 3 – Business Combinations – retrospectively to past business
combinations. As a result, the carrying value of goodwill recorded
under UK GAAP has been fixed at 1st October 2004 as deemed
cost and will no longer be amortised. Rather, it will be tested for
impairment annually and whenever events or changes in
circumstances indicate that the carrying value may not be
recoverable.
b) Financial instruments: The Group has taken the option to apply
IAS 32 – Financial Instruments: Disclosure and Presentation – and
IAS 39 – Financial Instruments – from 1 October 2005. On adoption
of IAS 32 and IAS 39 at 1 October 2005 no adjustments were
required. The Group’s only derivative instrument held at that
date was an interest rate collar which had a fair value of nil.
Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and all of its subsidiaries. Subsidiaries
are entities controlled by the Group. Control exists when the Group
has the power, directly or indirectly, to govern the financial and
operating policies of an entity so as to obtain benefits from its activities.
All intra Group transactions, balances, income and expense are
eliminated on consolidation. Subsidiaries are fully consolidated 
from the date on which control is transferred to the Group. They are
deconsolidated from the date on which control ceases. The accounting
periods of all subsidiaries are coterminous with those of the Company.
Revenue
Revenue represents the fair value of consideration receivable in the
ordinary course of business for goods sold and services provided. It
excludes sales between Group companies, returns, discounts given
and VAT. For the majority of sales, revenue is recognised at the
point of sale.
Foreign currency translation
Transactions denominated in foreign currencies are translated at the
prevailing rate at the date of transaction. Monetary assets and
liabilities denominated in foreign currencies held at the period end
are translated at the prevailing rate at the balance sheet date and
any exchange gains or losses are dealt with in the income statement.
The results of Jessops Photographic (Ireland) Limited are translated
at the average rate of exchange during the period, and its balance
sheet at the rate prevailing at the balance sheet date. Exchange
differences arising on translation of opening net assets are reported
in the statement of recognised income and expense.
Goodwill and intangible assets
Goodwill – goodwill represents the excess of the cost of an acquisition
over the fair value of the identifiable assets, liabilities and contingent
liabilities of the acquired business at the date of acquisition. It is not
amortised, but is tested annually for impairment. Goodwill is carried
within intangible assets at deemed cost on transition to IFRS less
accumulated impairment losses. Gains and losses on the disposal of
a business include the amount of goodwill relating to that business.
Intangible assets – intangible assets with a finite useful life are carried
at cost less amortisation less impairment losses. Amortisation is calculated
using the straight-line method to allocate the cost of the asset less
its assessed realisable value over its estimated useful life as follows:
Patents and trademarks 20 years
Technology 3 to 7 years Jessops plc Report & Accounts 2006
42
Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated
depreciation less impairment losses. Cost includes expenditure that
is directly attributable to the acquisition of the items. Subsequent
costs are included in the asset’s carrying value only when it is
probable that future economic benefits associated with the item
will flow to the Group and the costs can be measured reliably. All
other costs, including repairs and maintenance costs, are charged
to the income statement in the period in which they are incurred.
Depreciation is calculated on a straight-line basis to allocate their
cost less assessed residual value over their estimated lives as follows:
Freehold buildings 50 years
Alterations to leasehold property over the period of the lease
Office and computer equipment 3 to 10 years
Fixtures and fittings 3 to 10 years
Motor vehicles 3 years
No depreciation is provided on freehold land.
Impairment of assets
The impairment of the Group’s assets (including goodwill), other
than inventories and deferred tax assets are reviewed at each
balance sheet date to determine whether there is any indication of
impairment. If any such indication exists, the asset’s value is
estimated. An impairment loss is recognised whenever the carrying
amount of the asset exceeds its recoverable amount. Impairment
losses are recognised in the income statement.
Inventory
Inventories are stated at the lower of cost and net realisable value.
Cost is computed on a weighted average cost basis. Where necessary,
provisions are set aside to reflect the reduction on realisable value
resulting from the disposal of slow moving, damaged or obsolete
stock.
Cash and cash equivalents
The Group’s cash and cash equivalents reflected in the balance
sheet include cash in hand and deposits held at call with banks
with original maturities of three months or less. For cash flow
statement purposes, cash and cash equivalents also reflect bank
overdrafts repayable on demand to the extent they form an integral
part of the Group’s cash management.
Borrowings and borrowing costs
All loans and borrowings are initially recognised at cost being the
fair value of the considerations received net of issue costs associated
with the borrowings. After initial recognition all loans and borrowings
are subsequently measured at amortised cost and any difference
between the proceeds and redemption value is recognised in the
income statement over the period of the borrowings using the
effective interest method. Amortised cost is calculated taking into
account any issue costs and any discount or premium on settlement.
Borrowings are classified as current liabilities unless the Group has
an unconditional right to defer settlement of the liability for at least
twelve months from the balance sheet date.
Share-based payments
The Group issues equity settled share-based payments to certain
employees and Directors.
Equity settled share-based payments are measured at fair value at
the date of grant. The fair value determined at the date of grant of
the equity share-based payments (calculated using a Monte Carlo
model) is expensed over the period from the date when it is first
known that an award will be made until the date when that award
first vests, with a corresponding increase recorded in equity.
Retirement benefit obligations
Defined contribution pension plan
Obligations for contributions to defined contribution schemes are
recognised as an expense in the Income Statement as incurred.
Defined benefit pension plan
The Group recognises in its balance sheet the present value of its
defined benefit obligations less the fair value of plan assets. The defined
benefit obligation is calculated annually by an independent actuary
using the projected unit credit method. A full actuarial valuation is
performed every three years and this is updated annually for the
purposes of the consolidated financial statements. The present value
of the obligation is determined by discounting the estimated future
cash outflows using interest rates of high quality corporate bonds
that are denominated in the currency in which benefits will be paid
and which have terms to maturity approximating to the terms of the
related pension liabilities. Actuarial gains and losses arising from
experience adjustments and changes in actuarial assumptions are
reflected in the Statement of Recognised Income and Expense in
the period in which they arise.
Accounting policies continued Jessops plc Report & Accounts 2006
43
Dividends
Dividends are recognised as a liability and a deduction from equity
in the period in which they have been declared and approved by
the Company in general meeting. Interim dividends are recognised
as a deduction from equity in the period in which they are paid.
Derivative financial instruments
The Group uses derivatives to hedge against foreign currency purchases
and interest rate fluctuations. None of these contracts meet the
criteria of an ‘effective hedging arrangement’ under IAS 39.
Derivative financial instruments are initially accounted and measured
at fair value on the date that the contract is entered into and
subsequently remeasured to fair value at each reporting date. The
gains and losses on remeasurement are taken to the income statement
and reported as finance income or cost respectively.
Leases
Leases of property, plant and equipment where the Group has
substantially all the risks and rewards of ownership are classified as
finance leases. Finance leases are capitalised at the lease’s inception
at the lower of the fair value of the leased asset and the present
value of the minimum lease payments. Each lease payment is allocated
between the liability and finance charges so as to achieve a constant
rate on the finance balance outstanding. The asset subject to the
finance lease is depreciated over the shorter of its useful life and
the lease term. The corresponding rental obligations, net of finance
charges, are included as a liability.
Leases of property, plant and equipment where the Group does not
have substantially all the risks and rewards of ownership are classified
as operating leases. Payments made under operating leases are charged
to the income statement on a straight line basis over the lease term.
Taxation
The tax expense is the sum of current taxes payable and deferred tax.
The current tax payable is based on taxable profit for the year. Taxable
profit differs from net profit as reported in the Income Statement
because it excludes items of income or expense that are taxable or
deductible in other years and it further excludes items that are never
taxable or deductible. The Group’s liability for current tax is calculated
using tax rates that have been enacted or substantively enacted by
the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on
differences between carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the
computation of taxable profit, and is accounted for using the balance
sheet liability method. Deferred tax liabilities are generally recognised
for all temporary differences and deferred tax assets are recognised
to the extent that it is probable that taxable profits will be available
against which deductible temporary differences can be utilised.
Deferred tax is calculated at the tax rates that are expected to apply
in the period when the liability is settled or the asset is realised.
Deferred tax is charged or credited to the Income Statement, except
when it relates to items charged or credited through the Statement
of Recognised Income and Expense or directly to equity, in which case
the deferred tax is also dealt with in the Statement of Recognised
Income and Expense or equity respectively.
New accounting standards
The Group has not adopted early the requirements of IFRS7 ‘Financial
Instruments: Disclosures’, which will become mandatory with effect
from 1 January 2007 or IFRIC4 ‘Determining Whether an Arrangement
Contains a Lease’, which will become mandatory with effect from 1
January. The new disclosures will therefore be adopted in the Group’s
financial statements from the year ending 30 September 2007.
Accounting policies continued Jessops plc Report & Accounts 2006
44
Notes to the financial statements
1 Segmental reporting
The Group has one main business segment, which is retail, and one main geographical segment, which is the United Kingdom. The
business segment reporting format reflects the Group’s management and internal reporting structure.
2 Operating profit
Operating profit is stated after charging / (crediting)
2006 2005
£000 £000
Auditors’ remuneration:
– audit fees 116 104
– non-audit services 71 39
Amortisation of intangible assets 1,682 1,195
Depreciation of property, plant and equipment:
– owned 5,434 4,431
– leased 21 6
Operating lease rentals
– plant & machinery 3,776 4,500
– land & buildings 15,171 13,476
– rental income (133) (139)
Exchange losses 1 5
Loss / (profit) on disposal of tangible fixed assets 2 (227)
The Auditor’s remuneration for other services primarily related to advice on taxation matters (£49,000) and on the audit of the opening 
IFRS balance sheet (£22,000). In 2005, the auditors remuneration for other services related to advice on taxation matters. In 2005, the
Group also paid £468,000 to the Auditors in connection with the flotation.
3 Operating expenses
2006 2005
£000 £000
Selling and distribution costs 74,175 70,313
Administrative expenses 21,045 16,392
95,220 86,705
Consists of:
Operating costs before depreciation and amortisation 88,083 81,073
Depreciation and amortisation 7,137 5,632
95,220 86,705 Jessops plc Report & Accounts 2006
45
4 Employee numbers and costs
The average number of persons employed by the group (including Directors):
2006 2006 2005 2005
Number of Full time Number of Full time
heads equivalents heads equivalents
Selling 2,544 1,854 2,665 1,843
Administration 287 273 316 297
2,831 2,127 2,981 2,140
The aggregated remuneration of all employees including Directors comprised:
2006 2005
£000 £000
Wages and salaries 37,912 36,344
Social security costs 2,931 2,791
Share-based payment charge (note 21) 186 121
Other pension costs (note 25) 850 879
41,879 40,135
Details of the Directors’ remuneration, share options, long term incentive schemes and pension entitlements are disclosed in the Directors’
remuneration report on pages 28 to 35.
5 Financial income and expense
2006 2005
£000 £000
Finance costs:
Bank borrowings 2,591 2,803
Other interest 87 82
Loan notes – 688
Interest on pension scheme liabilities 1,356 1,290
Finance costs before one off costs 4,034 4,863
One off costs arising on flotation – 3,920
Finance costs 4,034 8,783
Finance income:
Expected return on pension scheme assets (1,059) (874)
Finance income (1,059) (874)
Net finance cost 2,975 7,909
One off items
Year ended 30 September 2005
On flotation the existing loan notes and bank loans were repaid in full. The unamortised finance costs of £3,920,000 relating to these
borrowings were therefore written off. There was an associated tax credit of £1,080,000.
Notes to the financial statements  continued Jessops plc Report & Accounts 2006
46
6 Taxation
2006 2005
£000 £000
Current taxation:
UK corporation tax charge for the period 4,949 2,393
Adjustment in respect of prior periods (374) –
4,575 2,393
Deferred taxation:
Origination and reversal of timing differences 687 920
Adjustment in respect of prior periods 484 315
1,171 1,235
Tax charge for the period 5,746 3,628
The tax charge is reconciled with the standard rate of UK corporation tax as follows:
2006 2005
£000 £000
Profit before tax 17,008 9,883
UK corporation tax at standard rate of 30% (2005: 30%) 5,102 2,965
Factors affecting the charge for the period:
Non-deductible expenses 81 120
Ineligible depreciation 462 235
Impact of small companies rate (8) (7)
Adjustment for under provision in prior years 109 315
5,746 3,628
7 Dividends
2006 2005
£000 £000
Equity – ordinary
Interim for the year ended 30 September 2006 – paid 0.75p 771 –
Final for the year ended 30 September 2005 – paid 1.40p 1,440 –
Interim for the year ended 30 September 2005 – paid 0.70p – 720
2,211 720
The Directors are proposing a final dividend of 1.50p per ordinary share for the year ended 30 September 2006 which equates to £1,543,000.
The dividend will be paid on 9th February 2007 to shareholders on the share register at the close of business on 12th January 2007.
8 Earnings per share
Basic and diluted earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity shareholders by the weighted average number of ordinary
shares in issue during the period.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive
potential ordinary shares. These represent share options granted to employees where the exercise price is less than the average market
price of the Company’s ordinary shares during the period.
Weighted average numbers of shares:
2006 2005
000 000
Weighted average number of shares in issue during the period 102,838 97,129
Weighted average number of dilutive shares 257 76
Number of shares for diluted earnings per share 103,095 97,205
Notes to the financial statements  continued Jessops plc Report & Accounts 2006
47
8 Earnings per share continued
Adjusted earnings per share
In addition to basic earnings per ordinary share, an additional adjusted earnings per share has been provided below which excludes one off costs
(net of tax). The earnings used for the basic and additional calculations, together with the resultant basic earnings per share are shown below:
2006 2005
£000 £000
Profit for the period 11,262 6,255
One off finance cost arising on flotation – 3,920
Tax impact of one off finance cost arising on flotation – (1,080)
Profit for the period excluding one off costs 11,262 9,095
Earnings per ordinary share – basic 11.0p 6.4p
Adjusted earnings per ordinary share – basic 11.0p 9.4p
Earnings per ordinary share – diluted 10.9p 6.4p
Adjusted earnings per ordinary share – diluted 10.9p 9.4p
9 Intangible assets
Computer Patents and Intangible
software trademarks assets Goodwill Total
£000 £000 £000 £000 £000
Cost
At 1 October 2004 8,094 256 8,350 77,014 85,364
Additions 2,811 17 2,828 – 2,828
At 30 September 2005 10,905 273 11,178 77,014 88,192
At 1 October 2005 10,905 273 11,178 77,014 88,192
Additions 1,371 26 1,397 50 1,447
Exchange difference (1) – (1) – (1)
At 30 September 2006 12,275 299 12,574 77,064 89,638
Amortisation
At 1 October 2004 561 29 590 – 590
Charge for the period 1,179 16 1,195 – 1,195
At 30 September 2005 1,740 45 1,785 – 1,785
At 1 October 2005 1,740 45 1,785 – 1,785
Charge for the period 1,666 16 1,682 – 1,682
At 30 September 2006 3,406 61 3,467 – 3,467
Net book value
At 1 October 2004 7,533 227 7,760 77,014 84,774
At 30 September 2005 9,165 228 9,393 77,014 86,407
At 30 September 2006 8,869 238 9,107 77,064 86,171
On 14 February 2006, the Company acquired the trade and certain assets of a chain of three stores from That Camera Place Limited for a
consideration of £97,000 as follows:
£000
Stock 22
Fixed assets 25
Assets acquired 47
Goodwill 50
Consideration 97
The fair value is the acquired value. No intangible assets were acquired. The post acquisition profit is £57,000.
Goodwill has been tested annually for impairment in accordance with IAS36 “Impairment of Assets” at 30 September 2005 and 30
September 2006 and no impairments have been identified.
The Group prepares discounted cash flow forecasts based on financial forecasts approved by management, covering a three-year period,
which takes account of both past performance and expectations for future market developments. Cash flows beyond this three-year period
are extrapolated using growth rates which do not exceed the long-term average growth rate for retail businesses in the UK. Management
estimates the discount rate using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific
to retail businesses.
Notes to the financial statements  continued Jessops plc Report & Accounts 2006
48
Notes to the financial statements  continued
10 Property, plant and equipment
Alterations to Fixtures &
short fittings, plant
Land and leasehold Office & machinery
buildings property equipment & vehicles Total
£000 £000 £000 £000 £000
Cost
At 1 October 2004 5,522 3,772 4,937 20,754 34,985
Additions 1,137 844 812 5,354 8,147
Disposals (610) (24) (33) (437) (1,104)
At 30 September 2005 6,049 4,592 5,716 25,671 42,028
At 1 October 2005 6,049 4,592 5,716 25,671 42,028
Additions – 702 615 9,318 10,635
Transfers – (146) 7 139 –
Disposals – (10) (10) (192) (212)
Exchange differences – – – (1) (1)
At 30 September 2006 6,049 5,138 6,328 34,935 52,450
Amortisation
At 1 October 2004 112 855 1,148 4,126 6,241
Charge for the period 66 508 652 3,211 4,437
Disposals (87) (18) (11) (342) (458)
At 30 September 2005 91 1,345 1,789 6,995 10,220
At 1 October 2005 91 1,345 1,789 6,995 10,220
Charge for the period 80 422 1,228 3,725 5,455
Disposals – (3) (7) (136) (146)
At 30 September 2006 171 1,764 3,010 10,584 15,529
Net book value
At 1 October 2004 5,410 2,917 3,789 16,628 28,744
At 30 September 2005 5,958 3,247 3,927 18,676 31,808
At 30 September 2006 5,878 3,374 3,318 24,351 36,921
The cost of fixtures, fittings, plant and machinery and vehicles includes £148,000 (2005: £148,000) in respect of assets held under hire
purchase agreements on which the accumulated depreciation at the end of the year was £27,000 (2005: £6,000) and for which the
depreciation charged in the year was £21,000 (2005: £6,000).
The net book value of land and buildings comprises £5,700,000 (2005: £5,777,000) of freehold land and buildings and £178,000 (2005:
£181,000) of long leasehold land and buildings.
11 Inventories
2006 2005
£000 £000
Finished goods for resale 61,853 56,429
12 Trade and other receivables
2006 2005
£000 £000
Trade receivables 6,455 6,093
Other receivables 149 726
Prepayments and accrued income 6,862 4,631
13,466 11,450 Jessops plc Report & Accounts 2006
49
Notes to the financial statements  continued
13 Cash and cash equivalents
2006 2005
£000 £000
Cash at bank and in hand – 4,809
Cash and cash equivalents include the following for the purposes of the cash flow statement:
Cash at bank and in hand – 4,809
Bank overdrafts (6,249) (10,000)
(6,249) (5,191)
14 Trade and other payables
2006 2005
£000 £000
Trade payables 49,211 42,301
Other taxation and social security 733 806
Other creditors 2,245 2,617
Accruals and deferred income 3,854 2,828
56,043 48,552
15 Borrowings
2006 2005
£000 £000
Current:
Bank overdrafts 6,249 10,000
Bank loans 7,500 5,500
B preference shares in Camera Equity Limited 1,291 –
15,040 15,500
Non current:
Bank loans 19,717 27,125
B preference shares in Camera Equity Limited – 1,291
19,717 28,416
The maturity profile of the Group’s non-current bank loans is as follows:
2006 2005
£000 £000
Expiring between 1 and 2 years 7,908 7,408
Expiring between 2 and 5 years 11,809 19,717
19,717 27,125
On 3 November 2004 the Group entered into a £55,000,000 loan facility. The facility consists of a £35,000,000 term loan and a
£20,000,000 revolving credit facility.
The term loan is repayable in instalments from 31 October 2007 to 31 October 2009. The revolving credit facility is repayable in full 
on 31 October 2009.
All of the Group’s borrowings are subject to interest at floating rate based on the Bank of England base rate.
Interest on both the term loan and revolving credit facility is payable at the rate of LIBOR plus a margin of between 0.65% and 1.25%
depending on covenant fulfillment.
The facilities are secured by a fixed and floating charge over the Group’s assets.
The Group also has overdraft facilities totaling £12,500,000.
The B preference shares in Camera Equity Limited carry a fixed dividend of 5.2% pa. The shares will be redeemed by the Group during
the year ending 30 September 2007 following the recent death of the holder. Jessops plc Report & Accounts 2006
50
Notes to the financial statements  continued
16 Finance leases
2006 2005
Total future minimum lease payments £000 £000
Current
Less than one year 21 21
Non-current
Between 1 and 5 years 84 84
After 5 years 16 37
100 121
17 Analysis of movement in net debt
At Other At
1 October Cash non cash 30 September
2005 flow changes 2006
Cash at bank and in hand 4,809 (4,809) – –
Bank overdraft (10,000) 3,751 – (6,249)
(5,191) (1,058) – (6,249)
Debt due within one year (5,500) 5,500 (7,500) (7,500)
Debt due after one year (27,125) – 7,408 (19,717)
B preference shares in Camera Equity Limited (1,291) –– (1,291)
Hire purchase creditor (142) 21 – (121)
Net debt (39,249) 4,463 (92) (34,878)
18 Deferred tax
Deferred tax is calculated in full on temporary differences under the liability method using a tax rate of 30% (2005: 30%).
Deferred tax assets and liabilities are attributable to the following:
Assets Liabilities Net
2006 2005 2006 2005 2006 2005
£000 £000 £000 £000 £000 £000
Employee benefits 2,491 3,050 – – 2,491 3,050
Share options 66 – – – 66 –
Property, plant and equipment – – (3,465) (2,365) (3,465) (2,365)
Other timing differences – – 503 423 503 423
2,557 3,050 (2,962) (1,942) (405) 1,108
The movement in the net deferred tax balance is as follows:
2006 2005
£000 £000
Liability at 1 October 1,108 2,493
Income statement charge (1,171) (151)
Charged to equity (342) (1,234)
(Asset) / liability at 30 September (405) 1,108 Jessops plc Report & Accounts 2006
51
Notes to the financial statements  continued
19 Financial instruments
Fair values of derivative financial instruments
The Group enters into derivative contracts when appropriate, to manage the interest rate and currency risks arising from the Group’s
operations and its sources of finance.
As at 30 September 2006, the Group had no outstanding interest rate hedges or foreign currency contracts.
As at 30 September 2005, the Group had an interest rate collar to hedge its exposure to interest rate fluctuations. The collar capped the
floating rate (before margin) at 5.00% and had a minimum floating rate of 4.02%. The instrument expired in March 2006.
Details of the interest rates applying on the Group’s borrowings are given in note 16. All of the Group’s borrowings bear interest at a
floating rate with reference to LIBOR.
Fair values of non-derivative financial liabilities
The following table is a comparison by category of the carrying amounts and the fair values of the Group’s financial assets and liabilities.
2006 2006 2005 2005
Book value Fair value Book value Fair value
£000 £000 £000 £000
Cash at bank and in hand –– 4,809 4,809
Short-term borrowings (13,749) (13,749) (15,500) (15,500)
Long term borrowings (20,000) (20,000) (27,500) (27,500)
Finance leases (121) (121) (142) (142)
B preference shares in Camera Equity Limited (1,291) (1,291) (1,291) (1,291)
(35,161) (35,161) (39,624) (39,624)
The fair value of short-term deposits, loans and overdrafts approximates to the carrying amount because of the short maturity of these
instruments.
For the Group’s long-term bank loans, the fair value approximates to the carrying value reported in the balance sheet as the loans are
floating rate where payments are reset to market rates at intervals of less than one year.
The B preference shares are expected to be redeemed during the year ending 30 September 2007 at par. The fair value is therefore the
same as the book value.
Financing
The Group's treasury policies are reviewed and approved by the Board.
The Group enters into financial instruments which arise directly from its operations or are solely for the purpose of financing the Group's
operations and managing the associated risks.
The objective is to ensure that the Group has access to liquidity at all times and has a continuity of funding available in a cost effective
manner. This is achieved through arranging funding ahead of requirements and maintaining sufficient undrawn committed facilities to meet
unanticipated needs.
The Group’s policy is to finance its operations through a mixture of retained profits and bank borrowings. The Group does not trade in
financial instruments. The main risks to arise from the Group’s borrowings are interest rate risk and currency risk.
Interest rate risk
The Group’s bank borrowings carry a variable rate of interest linked to prevailing LIBOR rates. From time to time the Group enters into interest
rate swaps and similar products to mitigate the risk of rises in UK interest rates. There are no such arrangements in place at 30 September 2006.
Foreign currency risk
Some purchases are denominated in US dollars, Euros and Japanese yen. The directors do not consider it necessary to hedge for foreign
exchange exposure.
20 Equity share capital
2006 2005
Number 2006 Number 2005
of shares £000 of shares £000
Ordinary shares of 2.5p each:
Authorised 140,000,000 3,500 140,000,000 3,500
Allotted, called up and fully paid 102,837,523 2,571 102,837,523 2,571
Interest in own shares
Deducted from retained earnings is £54,000 (2005: £nil) in respect of 41,438 own shares (2005: nil) held by the SIP (see note 21 below). Jessops plc Report & Accounts 2006
52
Notes to the financial statements  continued
21 Share based payments
As at 30 September 2006, the Group operated four share award plans. The expense in the period was as follows:
2006 2005
£000 £000
1. Jessops Executive Share Option Scheme (“ESOS”) – –
2. Jessops Savings-Related Share Option Scheme (“SAYE”) 130 121
3. Long-Term Incentive Plan (“LTIP”) 55 –
4. Share Incentive Plan (“SIP”) 1 –
186 121
1. Jessops Executive Share Option Scheme
The Jessops Executive Share Option Scheme was introduced in November 2004 and is a discretionary option scheme under which the
Remuneration Committee may grant options to all full time Directors of the Group and employees who are required to devote substantially
the whole of their working hours to the business of the group. The scheme is subject to performance conditions.  
The performance condition is that an option will not be exercisable unless the growth in Earnings Per Share (EPS) of the company over
three consecutive financial years (commencing with the financial year in which the option is granted) exceeds the growth in Retail Prices
Index (RPI) over the same period by at least 5% per annum. For EPS growth equaling 10% above the growth in RPI, the options are
exercisable in respect of 100% of the shares comprised in them. For growth in EPS between 5% and 10% per annum above RPI, the
percentage of shares comprised in the option in respect of which it is capable of exercise will be determined on a proportionate straight
line basis. Exercise of an option is subject to continued employment.
Early exercise of the options is permitted if an option holder ceases to be employed by reason of death, injury, disability, redundancy,
retirement or the sale of his employing company or business.
The options outstanding at the year end were as follows:
Exercise Earliest 
Grant price Number date of Expiry 
date Pence of shares exercise date
ESOS Scheme 1 November 2004 155.00 484,428 02.11.2007 02.11.2014
ESOS Scheme 2 January 2005 162.00 727,049 17.01.2008 17.01.2015
ESOS Scheme 3 February 2005 160.00 109,375 09.02.2008 09.02.2015
ESOS Scheme 4 May 2005 83.00 96,384 19.05.2008 19.05.2015
ESOS Scheme 5 September 2005 79.25 321,766 09.09.2008 09.09.2015
ESOS Scheme 6 December 2005 79.00 56,962 15.12.2008 15.12.2015
Options were valued using the Black-Scholes option-pricing models. No performance conditions were included in the fair value calculations.
ESOS ESOS ESOS ESOS ESOS ESOS 
Scheme 1 Scheme 2 Scheme 3 Scheme 4 Scheme 5 Scheme 6
Fair value at measurement date 57.00p 59.00p 57.00p 27.00p 29.00p 39.00p
Share price 155.00p 162.00p 160.00p 77.25p 79.25p 81.00p
Exercise price 155.00p 162.00p 160.00p 83.00p 79.25p 79.00p
Expected volatility 35% 35% 35% 35% 35% 32%
Option life 10 years 10 years 10 years 10 years 10 years 10 years
Expected dividends 2.60% 2.60% 2.60% 2.58% 2.58% 4.93%
Risk free rate 4.70% 4.35% 4.39% 4.28% 4.08% 4.18%
No charge has been reflected in the income statement for the year ended 30 September 2006 (2005: nil) as the Directors believe the
performance conditions will not be met and therefore the options will not vest. Jessops plc Report & Accounts 2006
53
Notes to the financial statements  continued
21 Share based payments continued
1.Jessops Executive Share Option Scheme (continued)
A reconciliation of option movements for the ESOS scheme is set out below:
2006 2005
Weighted Weighted  
average Number average Number 
price of options price of options
Outstanding at the start of the period 144.12 2,376,563 ––
Granted during the period 79.00 56,962 144.61 2,488,175
Forfeited during the period 156.67 (637,561) 155.00 (111,612)
Outstanding at the end of the period 137.60 1,795,964 144.12 2,376,563
Exercisable at the end of the period N/a nil N/a nil
2.Jessops Savings-related Share Option Scheme
The Jessops Savings-Related Share Option Scheme is a Save-As-You-Earn (SAYE) scheme and is open to all Directors and employees with
eligible employment service. Option may be exercised at the end of either a three or five year saving period from the date of grant and
then not more than six months thereafter. Special provisions allow for early exercise in the case of death, injury, disability, redundancy,
retirement or because the Company or business which employs the option holder is transferred out of the Group, or in the event of a
change of control, reconstruction or winding up of the Company.
The options outstanding at the year end were as follows:
Exercise Number Earliest date 
Grant date price Pence of shares of exercise Expiry date
SAYE Scheme 1 (3 year option) November 2004 122.00 176,479 01.12.2007 01.06.2008
SAYE Scheme 2 (5 year option) November 2004 122.00 108,674 01.12.2009 06.06.2010
SAYE Scheme 3 (3 year option) February 2006 81.54 524,656 08.02.2009 08.08.2009
SAYE Scheme 4 (5 year option) February 2006 81.54 159,116 08.02.2011 08.08.2011
Options were valued using the Black-Scholes option-pricing models.  
SAYE SAYE SAYE SAYE 
Scheme 1 Scheme 2 Scheme 3 Scheme 4
Fair value at measurement date 60.00p 63.00p 57.00p 27.00p
Share price 155.00p 155.00p 97.25p 97.25p
Exercise price 122.00p 122.00p 81.54p 81.54p
Expected volatility 35% 35% 32% 32%
Option life 3.5 years 5.5 years 3.5 years 5.5 years
Expected dividends 2.60% 2.60% 4.93% 4.93%
Risk free rate 4.57% 4.65% 4.13% 4.12%
A reconciliation of option movements for the SAYE scheme is set out below:
2006 2005
Weighted Weighted  
average Number average Number 
price of options price of options
Outstanding at the start of the period 122.00 890,945 – –
Granted during the period 81.54 783,499 122.00 1,089,882
Forfeited during the period 116.28 (705,519) 122.00 (198,937)
Outstanding at the end of the period 93.45 968,925 122.00 890,945
Exercisable at the end of the period N/a nil N/a nil Jessops plc Report & Accounts 2006
54
Notes to the financial statements  continued
21 Share based payments continued
3 Long-Term Incentive Plan
The LTIP was approved at the Extraordinary General Meeting in June 2006, awarding the Executive Directors and certain senior
management conditional rights to receive shares.
The extent to which such rights will vest will depend upon the Group’s performance over the three years from date of award.
The vesting of 50% of the awards will be determined by the Group’s relative total shareholder return (“TSR”) performance compared with
specific retailers and the vesting of the other 50% by the Group’s earnings per share (“EPS”) performance against RPI.
The options outstanding at the year end were as follows:
Maximum End of holding
Grant Exercise price number of period / release
date Pence shares date
LTIP Scheme 1 July 2006 – 1,416,357 03.07.2009
Options were valued using a Monte Carlo simulation option pricing model. The fair value at the measurement date was 60.00p and the
share price was 112.50p.
4 Share Incentive Plan
The SIP was launched in September 2006. Under the plan, all eligible employees can use a proportion of their monthly salary to buy shares
in the Company. These shares are all held by the Jessops plc Share Incentive Plan Trust on behalf of the employees. Any dividends on the
shares are reinvested. At 30 September 2006, the trust held 20,719 shares with a market value of £27,000.
Employees are awarded free shares on a one to one basis to the shares they have purchased but only become entitled to receive these
shares if they are employed on the three year anniversary of the purchase on a rolling basis.
If an employee leaves before the three year anniversary they are entitled to take the shares they purchased out of the trust but do not
receive the free shares.
The cost of the free shares is amortised evenly over the three year period to the point at which the employee becomes entitled to the shares.
22 Capital and reserves
Share Share Retained Translation Total
capital premium earnings reserve Equity
£000 £000 £000 £000 £000
As at 1 October 2004 197 792 (8,934) – (7,945)
Profit for the period – – 6,255 – 6,255
Issue of shares 2,374 88,369 – – 90,743
Employee share option scheme – – 121 – 121
Actuarial gain (net of tax) – – 358 – 358
Dividends paid – – (720) – (720)
As at 30 September 2005 2,571 89,161 (2,920) – 88,812
At 1 October 2005 2,571 89,161 (2,920) – 88,812
Profit for the period – – 11,262 – 11,262
Employee share option scheme – – 186 – 186
Deferred tax on share options – – 27 – 27
Purchase of own shares – – (54) – (54)
Actuarial gain (net of tax) – – 862 – 862
Currency translation difference – – – 2 2
Dividends paid – – (2,211) – (2,211)
As at 30 September 2006 2,571 89,161 7,152 2 98,886 Jessops plc Report & Accounts 2006
55
Notes to the financial statements  continued
23 Commitments
(i) As at 30 September 2006 the Group had entered into contracts to purchase property, plant and equipment totaling £1,136,000 (2005: nil).
(ii) Total future minimum lease payments under non cancelable operating leases are as follows:
2006 2006 2006 2005 2005 2005
Motor Land and Plant and Motor Land and Plant and 
vehicles buildings machinery vehicles buildings machinery
£000 £000 £000 £000 £000 £000
Within one year 305 12,682 2,467 223 11,917 2,969
In the second to fifth year inclusive 360 44,132 3,581 210 42,222 3,342
After five years – 50,057 – – 55,543 –
665 106,871 6,048 433 109,682 6,311
24 Contingent liability
The Company and certain subsidiaries have given joint and several guarantees in connection with all bank facilities provided by the Group’s
principal bankers.
The Group’s banking facilities are subject to a netting facility whereby credit balances may be offset against the indebtedness of other
Group companies.
25 Retirement benefit obligations
Defined benefit pension plan
The Group operates a defined benefit pension scheme, The Jessop Group Limited Pension and Life Assurance Scheme (1993).
2006 2005
£000 £000
Present value of funded obligations (27,572) (26,448)
Fair value of plan assets 19,268 16,282
Recognised liability for defined benefit obligations (8,304) (10,166)
Changes in the present value of the defined benefit obligation are as follows:
2006 2005
£000 £000
Opening defined benefit obligation 26,448 23,228
Current service costs 634 672
Interest cost 1,356 1,290
Actuarial (gains) / losses (293) 1,493
Benefits paid (750) (435)
Member contributions 177 200
Closing defined benefit obligation 27,572 26,448
Changes in the fair value of plan assets are as follows:
2006 2005
£000 £000
Opening fair value of plan assets 16,282 12,562
Expected return 1,059 874
Actuarial gains 939 2,002
Contributions by employer 1,561 1,079
Member contributions 177 200
Benefits paid (750) (435)
Closing fair value of plan assets 19,268 16,282 Jessops plc Report & Accounts 2006
56
Notes to the financial statements  continued
25 Retirement benefit obligations (continued)
Defined benefit pension plan (continued)
The amounts recognised in the income statement are as follows:
2006 2005
£000 £000
Current service cost 634 672
Interest cost 1,356 1,290
Expected return on plan assets (1,059) (874)
Total included in employee benefit expense 931 1,088
The expense is recognised on the following lines of the income statement:
2006 2005
£000 £000
Administrative expenses 634 672
Finance expense 1,356 1,290
Finance income (1,059) (874)
Total included in employee benefit expense 931 1,088
The total actuarial gain recognised immediately in the statement of recognised income and expense in the year is £1,232,000 (2005:
£509,000). Cumulative actuarial gains reported in the statement of recognised income and expenses since 1 October 2004 (the transition
date to IFRS) is £1,741,000 (2005: £509,000).
The fair value of plan assets were:
2006 2005
£000 £000
Equities 16,089 13,661
Bonds 1,946 1,514
Other 1,233 1,107
19,268 16,282
The actual return on plan assets in the year was £1,998,000 (2005: £2,876,000). The expected rates of return on plan assets are determined
by reference to relevant indices. The overall expected rate of return is calculated by weighting the individual rates in accordance with the
anticipated balance in the plan’s investment portfolio.
Principal actuarial assumptions:
2006 2005
% %
Discount rate 5.10 5.10
Expected rate of return on plan assets (weighted average) 6.30 6.70
Future salary increases 3.30 3.25
Future pension increases 2.80 2.75
To develop the expected long term rate of return on assets assumption, the Company considered the current level of expected returns on
risk free investments (primarily government bonds), the historical level of the risk premium associated with the other asset classes in which
the portfolio is invested and the expectations for future returns of each asset class. The expected return for each asset class was then
weighted based on the target asset allocation to develop the expected long term rate of return on assets assumption for the portfolio.
This resulted in the selection of the 6.3% assumption.
The weighted average life expectancy for mortality tables used to determine benefit obligations are as follows:
2006 2006 2005 2005
Male Female Male Female
Member age 60 (current life expectancy) 22.9 25.9 22.9 25.9
Member age 45 (life expectancy at age 60) 24.4 27.4 24.4 27.4 Jessops plc Report & Accounts 2006
57
Notes to the financial statements  continued
25 Retirement benefit obligations (continued)
Defined benefit pension plan (continued)
The history of the plan for the current and prior years is as follows:
2006 2005 2004
£000 £000 £000
Present value of funded obligations (27,572) (26,448) (23,228)
Fair value of plan assets 19,268 16,282 12,562
Recognised liability for defined benefit obligations (8,304) (10,166) (10,666)
The experience adjustments are as follows:
2006 2006 2005 2005
£000 £000
Experience adjustments on plan assets 939 4.9% 2,002 12.3%
Experience adjustments on plan liabilities – –
Defined contribution pension plan
The Group also operates a defined contribution scheme. Contributions at the agreed rates have been made. The charge for the year was
£216,000 (2005: £207,000)
26 Explanation of transition to IFRS
As stated in the accounting policies, these are the Group’s first consolidated accounts prepared under IFRS. The significant accounting
policies set out on pages 41 to 43 have been applied in preparing the accounts for the year ended 30 September 2006, the comparative
information presented in these accounts for the year ended 30 September 2005 and in the preparation of an opening IFRS balance sheet at
1 October 2004 (the Group’s date of transition). In preparing its opening IFRS balance sheet, the Group has adjusted the amounts reported
previously in accounts prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP).
An explanation of how the transition to IFRS has affected the Group’s financial position and financial performance is set out below.
In summary, the impact of adopting IFRS on the accounts for the year ended 30 September 2005 is as follows:
Impact on income statement £000
UK GAAP profit before taxation 5,852
Business combinations: reversal of goodwill amortisation 4,199
Charge relating to fair value of share based payments (121)
Lease incentives: change in the period over which benefit is recognised (45)
Employee benefits: change in pension charge (2)
IFRS profit before taxation 9,883
Taxation (3,628)
IFRS profit after taxation 6,255
Impact on net assets £000
UK GAAP net assets 83,288
Business combinations: reverse of goodwill amortisation 4,199
Lease incentives: change in the period over which benefit is recognised (86)
Employee benefits: change in pension charge and valuation of scheme assets (29)
Reversal of proposed dividends 1,440
IFRS net assets 88,812 Jessops plc Report & Accounts 2006
58
Notes to the financial statements continued
26 Explanation of transition to IFRS (continued)
Principal differences between UK GAAP and IFRS which affect the Group
The most significant changes in the Group’s accounting policies and presentation as a result of the adoption of IFRS are set out below.
IAS 10 “Events after the balance sheet date”: dividends
Under UK GAAP , dividends were recognised in the profit and loss account in the period to which they related.
Under IFRS, dividends are recognised as a liability and a deduction from equity in the period in which they have been declared and approved
by the Company in general meeting. Interim dividends are recognised as a deduction from equity in the period in which they are paid.
As a result, the final dividend for the year ended 30 September 2005, which was not declared and approved until after the balance sheet
date, has been reversed in the 30 September 2005 balance sheet and will be deducted from equity in the year ending 30 September 2006.
IAS 12 “Income taxes”
IAS 12 takes a balance sheet approach to deferred tax whereby deferred tax is recognised in the balance sheet by applying the appropriate
tax rate to the temporary differences arising between the carrying value of assets and liabilities and their tax base. This contrasts to UK GAAP
(FRS19) which considered timing differences arising in the profit and loss account. However, there is no impact of this change for the Group.
Adjustments made to the financial statements on the transition to IFRS resulted in related adjustments to deferred tax, particularly with regards
to lease incentives, share based payments and pensions. The net deferred tax asset on the pension deficit has also been reclassified from
deferred tax liabilities.
IAS 17 “Leases”
Under UK GAAP , operating lease incentives (principally rent free periods) were recognised to the profit and loss account over the period to
the first rent review. IAS 17 requires the benefit of any lease incentives received to be recognised over the life of the lease.
As a result, there will be a reduction in reported profits and an increase in liabilities (deferred income).
IAS 19 “Employee benefits”: pension scheme adjustments
Under UK GAAP , the Group accounted for the defined benefit scheme under FRS17 “Retirement benefits”. Under FRS17, the Group recognised
the net deficit in the defined benefit scheme in its balance sheet.
Under IAS 19, the Group will continue to recognise the net deficit on the balance sheet. However, IAS19 uses the bid value in measuring
scheme assets as opposed to the mid-market value under FRS 17 and this gives rise to a different net deficit and profit and loss account
charge (although both differences are small).
In addition, under UK GAAP , the associated deferred tax asset was netted off the pension scheme deficit. Under IFRS the deferred tax asset
will be shown separately (within non current assets) and not netted off the scheme deficit.
IAS 38 “Intangible assets”
Under UK GAAP , all capitalised software development and website development costs are included within tangible fixed assets. IAS 38
requires that where such costs are not an integral part of the associated hardware, they should be classified as intangible assets. Accordingly,
certain items of property, plant and equipment have been reclassified to intangible assets at each reference date.
There is no impact on the income statement as a result of this reclassification.
IAS 39 “Financial instruments: recognition and measurement”
Under IAS 39, any foreign exchange forward contracts and interest rate hedges are recognised at their initial fair value and subsequently remeasured
at fair value at future balance sheet dates. Changes in fair value are taken to the income statement in the period in which they arise.
As noted in section 3, the Group has elected to apply IAS 39 from 1 October 2005. However, there is no adjustment to make at this date
as the fair value of the interest rate collar was zero at this date. This contract did not meet the criteria of an ‘effective hedging agreement’
under IAS39. 
IAS 38 “Intangible assets”
Under UK GAAP , all capitalised software development and website development costs are included within tangible fixed assets. IAS 38 requires
that where such costs are not an integral part of the associated hardware, they should be classified as intangible assets. Accordingly, certain
items of property, plant and equipment have been reclassified to intangible assets at each reference date.
There is no impact on the income statement as a result of this reclassification. Jessops plc Report & Accounts 2006
59
Notes to the financial statements continued
26 Explanation of transition to IFRS (continued)
IAS 39 “Financial instruments: recognition and measurement”
Under IAS 39, any foreign exchange forward contracts and interest rate hedges are recognised at their initial fair value and subsequently remeasured
at fair value at future balance sheet dates. Changes in fair value are taken to the income statement in the period in which they arise.
The Group has elected to apply IAS 39 from 1 October 2005. However, there is no adjustment to make at this date as the fair value of the
interest rate collar was zero at this date. This contract did not meet the criteria of an ‘effective hedging agreement’ under IAS39.
IFRS 2 “Share based payments”
Under IFRS2, the fair value of all share-based payments is recognised as a charge to the income statement over the vesting period of the
award. Under UK GAAP , the charge was based on the difference between the exercise price and the market price at the date of the award
(the intrinsic value). Since this was typically nil, the UK GAAP charge was also nil.
A charge has therefore been recognised under IFRS 2 in the year ended 30 September 2005 and the period ended 27 March 2005,
calculated using the Monte Carlo pricing method.
A deferred tax asset is recognised in respect of share options based on the intrinsic value of the share options at the balance sheet date
and the length of vesting period which has elapsed at the balance sheet date. The associated tax credit to the income statement is
restricted to 30% (i.e. the effective tax rate) of the pre tax charge under IFRS2 with the balance recorded in equity.
IFRS 3 “Business combinations”
The Group carries goodwill on its balance sheet relating to the secondary buy-out in October 2002. As stated in Section 3, the Group has
elected not to apply IFRS 3 retrospectively to this business combination. As a result, the carrying value of goodwill recorded under UK
GAAP has been fixed at 1 October 2004 as deemed cost and will no longer be amortised. Rather, it will be tested for impairment annually
and whenever events or changes in circumstances indicate that the carrying value may not be recoverable.
Goodwill balances were reviewed for impairment as at 1 October 2004 and 30 September 2005 and no adjustments were identified. 
The amortisation charged in the UK GAAP profit and loss account for the year ended 30 September 2005 has been reversed. 
IAS 7 “Cash flow statements”
Under IFRS, cash flows are classified by three types of activities: operating, investing and financing. These headings are different to those
used under UK GAAP and there will therefore be reclassifications within the cash flow statement but otherwise there is no change.
Reconciliation of the consolidated income statement for the year ended 30 September 2005
IFRS 2 IFRS 3
UK IAS 17 IAS 19 Share based Business
GAAP Leases Pension payments combinations IFRS
£000 £000 £000 £000 £000 £000
Revenue 327,381 –––– 327,381
Cost of sales (222,884) –––– (222,884)
Gross profit 104,497 –––– 104,497
Costs (90,738) (45) – (121) 4,199 (86,705)
EBITDA 23,590 (45) – (121) – 23,424
Depreciation and amortisation (9,831) – – – 4,199 (5,632)
Profit from operations 13,759 (45) – (121) 4,199 17,792
Finance costs (4,863) – (2) – – (4,865)
Finance income 876 876
One off financing cost arising on flotation (3,920) –––– (3,920)
Profit before tax 5,852 (45) (2) (121) 4,199 9,883
Income tax expense (3,642) 14 – – – (3,628)
Profit for the year 2,210 (31) (2) (121) 4,199 6,255 Jessops plc Report & Accounts 2006
60
Notes to the financial statements  continued
26 Explanation of transition to IFRS (continued)
Reconciliation of the consolidated balance sheet as at 30 September 2005
IAS 38 IFRS 3
UK IAS 10 IAS 17 IAS 19 Intangible Business
GAAP Dividends Leases Pension assets combinations IFRS
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Non current assets
Goodwill 72,815 –––– 4,199 77,014
Intangible assets 228 – – – 9,165 – 9,393
Property, plant and equipment 40,973 – – – (9,165) – 31,808
Deferred tax – – – 3,050 – – 3,050
114,016 – – 3,050 – 4,199 121,265
Current Assets
Inventories 56,429 ––––– 56,429
Trade and other receivables 11,450 ––––– 11,450
Cash and cash equivalents 4,809––––– 4,809
72,688 ––––– 72,688
Current liabilities
Bank overdrafts and borrowings (15,500) ––––– (15,500)
Obligations under finance leases (21) ––––– (21)
Trade and other payables (49,869) 1,440 (123) – – – (48,552)
Tax liabilities (423) ––––– (423)
(65,813) 1,440 (123) – – – (64,496)
Net current assets 6,875 1,440 (123) – – – 8,192
Non current liabilities
Borrowings (28,416) ––––– (28,416)
Obligations under finance leases (121) ––––– (121)
Retirement benefits obligations (7,087) – – (3,079) – – (10,166)
Deferred tax liabilities (1,979) – 37 – – – (1,942)
(37,603) – 37 (3,079) – – (40,645)
Net assets 83,288 1,440 (86) (29) – 4,199 88,812
Equity
Issued capital 2,571––––– 2,571
Share premium 89,161 ––––– 89,161
Retained earnings (8,444) 1,440 (86) (29) – 4,199 (2,920)
Total equity attributable
to equity shareholders
of the parent 83,288 1,440 (86) (29) – 4,199 88,812 Jessops plc Report & Accounts 2006
61
Notes to the financial statements  continued
26 Explanation of transition to IFRS (continued)
Reconciliation of the consolidated balance sheet as at 1 October 2004
IAS 38 IFRS 3
UK IAS 10 IAS 17 IAS 19 Intangible Business
GAAP Dividends Leases Pension assets combinations IFRS
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Non current assets
Goodwill 77,014 ––––– 77,014
Intangible assets 227 – – – 7,533 – 7,760
Property, plant and equipment 36,277 – – – (7,533) – 28,744
Deferred tax – – – 3,200 – – 3,200
113,518 – – 3,200 – – 116,718
Current Assets
Inventories 42,428 ––––– 42,428
Trade and other receivables 10,540 ––––– 10,540
Cash and cash equivalents 10,730 ––––– 10,730
63,698 ––––– 63,698
Current liabilities
Bank overdrafts and borrowings (13,300) ––––– (13,300)
Obligations under finance leases (3) ––––– (3)
Trade and other payables (42,469) – (78) – – – (42,547)
Tax liabilities (752) ––––– (752)
Provisions (664) ––––– (664)
(57,188) – (78) – – – (57,266)
Net current assets 6,510 – (78) – – – 6,432
Non current liabilities
Borrowings (119,722) ––––– (119,722)
Obligations under finance leases –––––––
Retirement benefits obligations (7,444) – – (3,222) – – (10,666)
Deferred tax liabilities (730) – 23 – – – (707)
(127,896) – 23 (3,222) – – (131,095)
Net assets (7,868) – (55) (22) – – (7,945)
Equity
Issued capital 197 ––––– 197
Share premium 792 ––––– 792
Retained earnings (8,857) – (55) (22) – – (8,934)
Total equity attributable
to equity shareholders
of the parent (7,868) – (55) (22) – – (7,945) Jessops plc Report & Accounts 2006
62
Parent company accounts under UK GAAP
Company balance sheet
At 30 September 2006 2006 2005
Note £000 £000
Fixed assets
Investments 5 377 191
Current assets
Debtors 6 141,465 134,789
141,465 134,789
Creditors: amounts falling due within one year 7 (25,156) (13,005)
Net current assets 116,309 121,784
Total assets less current liabilities 116,686 121,975
Creditors: amounts falling due after more than one year 8 (19,717) (27,125)
Net assets 96,969 94,850
Capital and reserves
Called up share capital 9 2,571 2,571
Share premium account 10 89,161 89,161
Profit and loss account 10 5,237 3,118
Equity shareholders’ funds 96,969 94,850
The financial statements on pages 62 to 65 were approved by the Board of Directors on 30 November 2006 and were signed on its behalf
by:
Chris Langley John Crabtree
Chief Executive Finance Director Jessops plc Report & Accounts 2006
63
Accounting policies
Basis of preparation
The Company has elected to prepare its financial statements under
UK GAAP .
The accounts of the Company are prepared under the historical cost
convention, in accordance with the Companies Act 1985, applicable
accounting standards and specifically in accordance with the accounting
policies set out below.
A consolidated cash flow statement has been included in the Jessops plc
consolidated accounts. The Company has therefore taken advantage of
the exemption under FRS1 (Revised 1996) “Cash flow statements” not
to produce a cash flow statement.
Changes in accounting policies
The Company has adopted FRS20 “Share-based payment”, 
FRS21 “Events after the balance sheet date”, FRS25 “Financial
instruments: disclosure and presentation”, FRS26 “Financial
instruments: measurement” and FRS28 “Corresponding Amounts”.
The adoption of each of these standards represents a change in
accounting policy. The effect of the change in accounting policy 
to adopt FRS20 was to increase the cost of investments at 30
September 2005 by £121,000 with a corresponding increase in
equity reserves. The effect of the change in accounting policy to
adopt FRS21 was to recognise the final proposed dividend for the year
ended 30 September 2005 of £1,440,000 in the current year. The
final proposed dividend for the current year of £1,543,000 will be
recognised in the year ending 30 September 2007 as it has yet to
be approved by shareholders. There was no effect on the year
ended 30 September 2005 of adopting FRS25, FRS26 or FRS28.
Share-based payments
The Company issues equity settled share-based payments to certain
employees and directors.
Equity settled share-based payments are measured at fair value at
the date of grant. The fair value determined at the date of grant of
the equity share-based payments (calculated using a Monte Carlo
model) is expensed over the period from the date when it is first
known that an award will be made until the date when that award
first vests, with a corresponding increase recorded in equity.
Investments
Investments in subsidiary undertakings are stated at the cost of the
investments. Provision is made against cost where, in the opinion 
of the directors, the value of the investments has been impaired.
Equity dividends
Equity dividends are recognised in the Group’s financial statements
in the period in which the dividends are approved by shareholders.
Interim equity dividends are recognised in the period in which they
are paid.
Costs of acquisition and raising finance
Costs incurred in raising debt finance are deducted from the proceeds
raised and are amortised over the period of finance. Costs relating to
the issue of share capital are set off against the share premium account.
Costs relating directly to acquisitions are included within the cost of
investment.
UK GAAP parent company financial statements Jessops plc Report & Accounts 2006
64
Notes to the financial statements
UK GAAP parent company financial statements
1 Profit and loss account
The Company made a profit before dividends for the financial period of £4,198,000 (2005: £3,717,000). The Directors have taken advantage
of the exemption available under section 230 of the Companies Act 1985 and not presented a profit and loss account for the Company alone.
2 Audit fees
The total fees payable by the Company to the auditors and their associates during the period were borne by The Jessop Group Limited.
3 Employee costs
The Company has no employees other than the five Directors. Full details of the Directors remuneration and interests are set out in the
Directors’ Remuneration Report on pages 28 to 35.
4 Dividends
2006 2005
£000 £000
Equity - ordinary
Interim for the year ended 30 September 2006 – 0.75p 771 –
Final for the year ended 30 September 2005 – paid 1.40p 1,440 –
Interim for the year ended 30 September 2005 – paid 0.70p – 720
2,211 720
The Directors are proposing a final dividend of 1.50p per ordinary share for the year ended 30 September 2006 which equates to £1,543,000.
The dividend will be paid on 9th February 2007 to shareholders on the share register at the close of business on 12th January 2007
5 Investments
£000
Shares in subsidiary undertakings
At 1 October 2005 70
Prior year adjustment 121
At 1 October 2005 (as restated) 191
FRS20 adjustment 186
At 30 September 2006 377
In accordance with FRS 20 “Share Based Payment” the cost of investment is increased to reflect the cost of share options awarded to employees
of the Company’ s subsidiaries. Consequently, this change in accounting policy (as described on page 42) increases the cost of investment at 1 October
2005 by £121,000 with a corresponding increase in reserves. The restatement has no effect on profit for the financial year ended 30 September 2005 or
30 September 2006. Full information on the fair value calculations of share options is given in note 21 to the consolidated financial statements.
In the opinion of the Directors of the Company, the value of the company’s investments, consisting of shares in subsidiary undertakings,
is not less than the amount shown above.
Principal subsidiaries
The following were the principal subsidiary companies at the end of the year:
Subsidiary Proportion of ordinary shares held Nature of business
Camera Bond Limited 100% Intermediate holding company
Camera Mezz Limited (1) 100% Intermediate holding company
Camera Equity Limited (1) 100% Intermediate holding company
The Jessop Group Limited (1) 100% Photo imaging products and services retailer
Well Hall (Jersey) Limited (1) 100% Photo imaging products and services retailer
Expert Imaging Limited 100% Photo imaging products and services retailer
Jessops Photographic (Ireland) Limited (1) 100% Photo imaging products and services retailer
All of the above subsidiaries are registered and operate in England and Wales with the exception of Jessops Photographic (Ireland) Limited
which is registered and operates in the Republic of Ireland.
(1) Not held directly by the Company. Jessops plc Report & Accounts 2006
65
6 Debtors
2006 2005
£000 £000
Amounts owed by group undertakings 141,465 134,789
7 Creditors: amounts falling due within one year
2006 2005
£000 £000
Bank loans 7,500 5,500
Amounts owed to group undertakings 17,366 7,505
Corporation tax 7 –
Other creditors 27 –
Accruals 256 –
25,156 13,005
In accordance with FRS21 “Events after the balance sheet date” dividends are no longer provided until approved. Consequently, this change
in accounting policy (as described on page 43) removes the creditor for proposed final dividend (£1,440,000) at 30 September 2005
against retained earnings reserves. The restatement has no effect on profit for the financial year ended 30 September 2006.
8 Creditors: amounts falling due after more than one year
2006 2005
£000 £000
Bank loans 19,717 27,125
9 Equity share capital
2006 2006 2005 2005
Number of shares £000 Number of shares £000
Ordinary shares of 2.5p each:
Authorised 140,000,000 3,500 140,000,000 3,500
Allotted, called up and fully paid 102,837,523 2,571 102,837,523 2,571
Interest in own shares
Deducted from retained earnings is £54,000 (2005: £nil) in respect of 41,438 own shares (2005: nil) held by the SIP (see note 22 to the
consolidated accounts above).
10 Movement in equity shareholders’ funds
Share Share Retained Total
capital premium earnings
£000 £000 £000 £000
At 1 October 2005 2,571 89,161 1,557 93,289
Prior year adjustment – FRS 20 (see note 5) – – 121 121
Prior year adjustment – FRS 21 (see note 7) – – 1,440 1,440
At 1 October 2005 (as restated) 2,571 89,161 3,118 94,850
Profit for the period – – 4,198 4,198
Dividends – – (2,211) (2,211)
Purchase of own shares – – (54) (54)
Employee share options – – 186 186
At 30 September 2006 2,571 89,161 5,237 96,969
11 Related party disclosures
Under FRS8 “Related party disclosures” the Company is exempt from disclosing related party transactions with entities over which it has
90% control or more.
12 Contingent liability
The Company and certain subsidiaries have given joint and several guarantees in connection with all bank facilities provided by the Group’s
principal bankers.
The Group’ s banking facilities are subject to a netting facility whereby credit balances may be offset against the indebtedness of other Group companies.
UK GAAP parent company financial statements
Notes to the financial statements  continued Jessops plc Report & Accounts 2006
66
Notice of Annual General Meeting
NOTICE is hereby given that the ANNUAL GENERAL MEETING of Jessops plc
will be held at the offices of ABN AMRO, 250 Bishopsgate, London, EC2M
4AA on 29 January 2007 at 11.00 am to transact the following business:
Ordinary Business
1. To receive and adopt the financial statements for the year ended 30
September 2006, together with the Reports of the Directors and of the
Auditors thereon.
2. To re-appoint KPMG Audit plc as auditors to the Company, to hold office
until the conclusion of the next general meeting at which accounts are
laid before the Company. 
3. To authorise the Directors to determine the remuneration of the auditors.
4. To re-appoint Ian Harris as a director.
5. To re-elect Gavin Simonds as a director.
6. To approve the Directors’ Remuneration Report for the year ended 30
September 2006.
7. To declare a final dividend for the year ended 30 September 2006 of
1.50 pence per share, to be paid on 9th February 2007 to members
whose names appear on the register of members at the close of business
on 12th January 2007.
To transact any other ordinary business of the Company.
Special Business
As special business, to consider and if though fit, pass the following
resolutions which will be proposed as to resolution 8 as an ordinary
resolution and as to resolutions 9 and 10 as special resolutions:
8. THAT, subject to and in accordance with Article 16 of the Articles of
Association of the Company, the Directors be generally and unconditionally
authorised in accordance with section 80 of the Companies Act 1985 (in
substitution for any existing authority to allot relevant securities) to exercise
all the powers of the Company to allot relevant securities (within the
meaning of section 80 of the Companies Act 1985) up to a maximum
nominal amount of £856,979 (being approximately one third of the current
issued share capital) provided that such authority shall expire at the
conclusion of the next Annual General Meeting, but so 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
may allot relevant securities in pursuance of such offer or agreement as if
the authority conferred by this resolution had not expired.
9. THAT, subject to the passing of resolution 8 as set out in the notice of
this meeting, and in accordance with Article 17 of the Articles of
Association of the Company, the Directors be empowered pursuant to
section 95 of the Companies Act 1985 to allot equity securities (as
defined in section 94 of the Companies Act 1985) for cash pursuant to
the general authority conferred by resolution 8 as set out in the notice of
this meeting and sell relevant shares (as defined in section 94 of the
Companies Act 1985) held by the Company as treasury shares (as
defined in section 162A of the Companies Act 1985) for cash, as if
section 89(1) of the Companies Act did not apply to such allotment or
sale, provided that this power shall be limited to allotments of equity
securities and the sale of treasury shares:
(i)  in connection with or pursuant to an offer by way of rights, open
offer or other pre-emptive offer to the holder of shares in the
Company and other persons entitled to participate therein in
proportion (as nearly as practicable) to their respective holdings,
subject to such exclusions or other arrangements as the Directors may
consider necessary or expedient to deal with fractional entitlements or
legal or practical problems under the laws of any territory or the
regulations or requirements of any regulatory authority or any stock
exchange in any territory; and
(ii) otherwise than pursuant to sub-paragraph (i) above, up to an aggregate
nominal amount of £128,546, and such power shall expire on the
conclusion of the next Annual General Meeting of the Company but so
that the Company may before such expiry make an offer or agreement
which would or might require equity securities to be allotted or treasury
shares to be sold after such an expiry, and the Directors may not allot
equity or sell treasury shares in pursuance of such offer or agreement as if the
power conferred by this resolution had not expired.
10.THAT , the Company be generally and unconditionally authorised pursuant to
Article 9 of the Articles of Association of the Company and pursuant to section
166 of the Companies Act 1985, to make market purchases (as defined in
section 163 of the Companies Act 1985) of up to an aggregate nominal value
of £128,546 in the capital of the Company (being approximately 5 per cent of
the current issued ordinary share capital of the Company) on such terms and in
such manner as the Directors of the Company may from time to time
determine, provided that:
(a) the amount paid for each share (exclusive of expenses) shall not be more
than five per cent above the average of the middle market quotation for
Ordinary Shares as derived from the Daily Official List of the London Stock
Exchange plc for the five business days before it is made, and in any event
not less than 2.5p per share; and
(b) The authority herein contained shall expire at the conclusion of the next
Annual General Meeting of the Company provided that the Company may,
before such expiry, make a contract to purchase its own shares which would
or might be executed wholly or partly after such expiry, and the Company
may make a purchase of its own shares in pursuance of such contract as if
the authority hereby conferred hereby had not expired.
Dated: 14 December 2006 By Order of the Board
Registered Office: Nick Molyneux
Jessops House Secretary
98 Scudamore Road
Leicester
LE3 1TZ
Notes:
(i) Any member entitled to attend and vote at the Annual General Meeting is entitled to
appoint one or more proxies (who need not be members of the Company) to attend and,
on a poll, to vote instead of the member. Completion and return of a form of proxy will
not preclude a member from attending and voting at the meeting in person, should he
subsequently decide to do so.
(ii) In order to be valid, any form of proxy and power of attorney or other authority under
which it is signed, or notarially certified or office copy of such power or authority, must
reach the Company’s Registrars, Lloyds TSB Registrars, The Causeway, Worthing, West
Sussex, BN99 6DA, not less than 48 hours before the time of the meeting or of any
adjournment of the meeting.
(iii) As permitted by Regulation 41 of the Uncertificated Securities Regulations 2001,
shareholders who hold shares in uncertified form must be entered on the Company’s share
register at 11.00 am on 27 January 2007 in order to be entitled to attend and vote at the
Annual General Meeting. Such shareholders may only cast votes in respect of shares held at
such time. Changes to entries on the relevant register after that time shall be disregarded in
determining the rights of any person to attend or vote at the meeting.
(iv) Copies of the service contracts of each of the Directors, and the register of Directors’ interests
in shares of the Company kept pursuant to section 325 of the Companies Act 1985 will be
available for inspection at the registered office of the Company during usual business hours
on any weekday (Saturdays and public holidays excluded) from the date of this notice until
the date of the Annual General Meeting and at the Annual General Meeting from at least
15 minutes prior to and until the conclusion of the Annual General Meeting.
(v) Biographical details of each Director being proposed for re-appointment or re-election by
shareholders, are set out on page 2 of the Annual Report of the Company for the year
ended 30 September 2006. Jessops plc Report & Accounts 2006
67
Annual General Meeting form of proxy
I/We
(Please insert full name(s) and address(es) in block letters)
of
being (a) member/members of the above-named Company hereby appoint the Chairman of the Meeting, or (see Note 1 below) 
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 29 January 2007 and at any adjournment
thereof, and to vote as indicated below.
Please indicate how you wish your proxy to vote by inserting “X” in the box below. If no indication is given, and on any other resolutions proposed at the
meeting, your proxy will vote or abstain from voting as he/she thinks fit.
NAME: (Block capitals)
ADDRESS:
SIGNATURE(S):
or COMMON SEAL: Date:
Notes
1. Any member entitled to attend and vote at the Annual General Meeting is entitled to appoint one or more proxies (who need not be a member of the Company) of his/her own choice to attend
and, on a poll, to vote in his/her place. If a member wishes to appoint a proxy other than the Chairman, delete the words “the Chairman of the Meeting or”, initial the alteration and insert the
name of the person you wish to appoint as your proxy.
2. All members are entitled to attend and vote at the meeting, whether or not they have returned a form of proxy.
3. If a member is a corporation, this form of proxy must be executed under its common seal or by the signature of an officer or attorney duly appointed.
4. In the case of joint holders, the signature of any one holder will be sufficient, but the names of all joint holders should be stated, and the vote of the senior holder who tenders a vote will be
accepted to the exclusion of the vote(s) of other jointer holder(s), seniority being determined by the order in which the names stand in the register of members of the Company.
5. In order to be valid, this form of proxy, duly executed together with any power of attorney or other authority under which it is signed, or a notarially certified or office copy of such power or
authority, must be lodged at the Company’s Registrars not less than 48 hours before the time of the meeting or any adjournment of the meeting.
6. Any alterations made to this form of proxy should be initialled.
RESOLUTIONS
Ordinary Business FOR AGAINST
1 To receive and adopt the financial statements for the year ended 30 September 2006.
2 To re-appoint KPMG Audit plc as auditors.
3 To authorise the Directors to determine the remuneration of the auditors.
4 To re-appoint Ian Harris as a Director.
5 To re-elect Gavin Simonds as a Director.
6 To approve the Directors’ Remuneration Report for the year ended 30 September 2006.
7 To declare a final dividend for the year ended 30 September 2006 of 1.50 pence per share, to be paid 
on 9th February 2007 to members whose names appear on the register of members at the close of 
business on 12th January 2007.
Special Business
8 To authorise the Directors to allot relevant securities pursuant to section 80 of the Companies Act 1985.
9 To authorise the Directors to allot equity securities pursuant to section 95 of the Companies Act 1985.
10 To approve the purchase of shares pursuant to section 166 of the Companies Act 1985. First Fold
Second Fold
Third Fold
LLOYDS TSB REGISTRARS
THE CAUSEWAY
WORTHING
WEST SUSSEX
BN99 6DA
Tuck inside facing flap
AFFIX
STAMP
HERE Advisers & registered office
Auditors
KPMG Audit Plc
1 Waterloo Way
Leicester LE1  6LP
Legal advisers
Ashurst
Broadwalk House
5 Appold Street
London EC2A 2HA
Registrars
Lloyds TSB Registrars
The Causeway
Worthing
West Sussex BN99 6DA
Principal bankers
HSBC Bank plc
Penman Way
Grove Park, Enderby
Leicester LE19 1SY
Corporate brokers
Hoare Govett Limited
250 Bishopsgate
London EC2M 4AA
Financial advisers
DRKW
30 Gresham Street
London EC2P 2XY
Secretary and 
registered office
Nick Molyneux
Jessop House
Scudamore Road
Leicester LE3 1TZ
2007 reporting calendar
Analysis of shareholding
Christmas Trading Update January 2007
Annual General Meeting 29 January 2007
Interim Results May 2007
Pre-close Trading Update September 2007
Preliminary Results November 2007
At 30 September 2006, Jessops plc had 900 shareholdings of 2.5p Ordinary Shares. The following tables analyse
these shareholdings by number and holder type:
(i) Shareholdings by number of shares 
Number Total shares 
Number of shares of holdings % held %
1 – 500 131 14.56 34,223 0.03
501 – 1,000 168 18.67 141,198 0.14
1,001 – 5,000 287 31.89 721,739 0.70
5,001 – 10,000 92 10.22 728,361 0.71
10,001 – 100,000 119 13.22 4,373,740 4.25
100,001 – 500,000 58 6.44 14,907,115 14.50
500,001 – 1,000,000 16 1.78 10,722,197 10.43
Over 1,000,000 29 3.22 71,208,950 69.24
900 100.00 102,837,523 100.00
(ii) Shareholdings by type of shareholder
Number Number 
Holder of holdings % of shares %
Nominee Company 399 44.33 97,848,033 95.15
Male 322 35.78 878,684 0.85
Female 102 11.33 434,131 0.42
Joint Account Not All Corporate Bodies 49 5.45 114,881 0.11
Other Limited Company 22 2.45 280,023 0.27
Bank 2 0.22 2,514,748 2.45
Other Corporate Body 2 0.22 717,022 0.70
Pension Fund 1 0.11 1 0.00
Public Limited Companies 1 0.11 50,000 0.05
900 100.00 102,837,523 100.00
This report is printed on Revive Silk paper containing 75% de inked post consumer waste.The remaining fibre used
is 25% combination of mill broke (papermaking process waste) and virgin fibres. Revive is accredited with NAPM
(75% minimum recycled) and Eugropa (50% recycled) labels. The paper was produced at a mill with ISO 14001
accreditation (Internationally recognised specification for mills running their businesses with as little impact on the
environment as possible). Finally, all pulps are made without the use of chlorine gas in the bleaching process (ECF).
Designed by SG Design and printed by Pegasus Colour Print Ltd