Southampton International Park
George Curl Way
Southampton
Hampshire
SO18 2RX
United Kingdom
www.universeplc.com
t: +44 (0)23 8068 9510
f: +44 (0)23 8068 9510
Universe Group PLC is Registered in England. Registered No. 2639726   
 
Leaders in forecourt technology
Annual Report 2007 www.universeplc.com
Contents
1 Highlights
2 Chairman’s Statement
3 Chief Executive’s Report
5 Directors’ Remuneration Report
6 Corporate Governance Report
7 Directors’ Report
9 Independent Auditors’ Report
10 Consolidated Income Statement
11 Group Statement of Changes in Equity
Company Statement of Changes in Equity
12 Balance Sheets
13 Cash Flow Statements
14 Notes to the Accounts
33 Directors and Advisors
Financial Calendar
Annual General Meeting 
30 May 2008 1
�
Revenue increased by 16.0% to £13.2 million 
(2006: £11.3 million) 
�
Gross margin increase to 37 .5% (2006: 30.3%) 
driven by growth in data centre services
�
Loss after tax of £1.9 million (2006: £6.5 million) 
after exceptional costs*
�
Adjusted operating profit** up 28.4% to £0.8 million 
(2006: £0.7 million)
�
Adjusted profit before tax*** up 97 .9% to £0.7 million 
(2006: £0.3 million)
�
Short term borrowings down to £0.9 million 
(2006: £3.1 million), total borrowings down to £1.8 million 
(2006: £3.1 million)
�
Establishment of the new Jet wash, Air Tower 
and Vacuum (JAV) business 
* Exceptional costs comprise a write down of development costs of £2.3 million relating to a reappraisal of future sales prospects in a period
of rapid technology change and other exceptional costs of £0.2m relating to refinancing and business restructuring.
** Before write down of development costs of £2.3 million and other exceptional costs of £0.1 million relating to restructuring.
*** Before all charges disclosed in ** and before other exceptional costs of £0.1 million relating to refinancing.
Unless specified otherwise, all references to adjusted operating profit and adjusted profit before tax throughout this document exclude the
adjustments disclosed in ** and *** above.
Statutory operating loss is £1.6 million (2006: £2.8 million).
Highlights 2
2007 was an important year for Universe. Following a
disappointing 2006, major changes in the Group’s financial and
operational structure were necessary, and were made. 
Financially, the Group strengthened its balance sheet, through a
placing of new equity on 20th April 2007 raising £3 million (before
costs), and putting in place new bank facilities.
Operationally, experienced and enthusiastic new management has
been recruited to re-organise and re-energise all functions within
the Group. 
The Board was also strengthened by the addition of a new non-
executive director. I was delighted to welcome Malcolm Coster to
the Board in August. Malcolm’s operating and board experience in
technology services and manufacturing companies will add greatly
to the Board’s decision making. Ray Mackie and Adrian Grinsell
have stood down from the Board and we thank them for their
services to the Group.
Results and Current trading
In 2007 we achieved an adjusted operating profit* of £0.8 million.
This represents an increase of 28.4% compared with operating
profit of £0.7 million the previous year. Our sales on continuing
business were £13.2 million, against £11.3 million for 2006, yielding
an adjusted profit before tax** on continuing business of £0.7
million against £0.3 million for 2006.  On a statutory basis,
operating loss for the year was £1.6 million (2006: £2.8 million) and
loss after tax was £1.9 million (2006: £6.5 million). 
Universe has made significant investment developing the products
and technology applications which it employs today.   Following the
Group's development of various new technology products the
Board has reviewed certain of the previously capitalised costs and
has agreed that it is appropriate to write off £2.3 million relating to
the development costs of payment terminal hardware, which the
Board believes may not be recovered in future sales.
The 2007 results were encouraging, setting the Group off on its
renewed growth path.  
HTEC’s operating momentum resumed in 2007 as signalled last
year. Once again, it generated both cash and profits, and, crucially,
saw good revenue growth. With its much more cohesive and
prominent market strategy, we anticipate that this will continue on
this course in 2008.
Jet Set
An important move recently made was the formation of a new
subsidiary company Jet Set Wash Services Limited ("Jet Set") to
focus on the provision of car wash and valeting services.  The new
company will comprise the company's existing car wash and
valeting services, together with the acquisitions of AIB and WSF ,
details of which were announced on 12 February 2008. Jet Set is
an exciting addition to the Group, capable of generating both
strong growth and predictable earnings through its revenue
sharing contracts. 
Dividend
We continue to be very strongly focused on generating long term
growth. In order to achieve this we need to provide sufficient
financial resources to deliver the growth plan. Therefore we do not
propose paying a final dividend for the year but will review the
position regarding future dividend payments in the context of the
performance of the Group.
* Before write down of development costs of £2.3 million relating to a
reappraisal of future sales prospects in a period of rapid technology change
and other exceptional costs of £0.1 million relating to business restructuring.
** Before all charges disclosed in * and before other exceptional costs of
£0.1 million relating to refinancing. 
Prospects
Universe now has a sound financial and operational basis from
which to build. I am sure that 2008 will show continued progress
in growth, profitability and market penetration
John Scholes
Chairman
30 April 2008
Chairman’s Statement Chief Executive’s Report
for the year ended 31 Decemåer 2007
3
In my first full year as CEO I can report that Universe Group has
undergone a transformation designed to deliver long term
sustained growth and enhanced value to shareholders. The key
elements of the strategy being a financial restructuring, disposal of
non core activities and focus on growing the main operating
subsidiary, HTEC, into new markets and territories. 
Financial Performance Review
Group revenues at £13.2 million (2006: £11.3 million) showed a
16% increase and an adjusted operating profit* of £0.8 million
(2006: £0.7 million) saw a 28.4% increase on the previous year.
Revenue increases took place in both the Retail and International
divisions driving margins higher overall. Substantial investment in
new people and infrastructure reduced overall profitability by
approximately £0.6 million but such expenditure was considered
essential to drive revenue growth.
The Board will continue to monitor revenue growth, operating
profit and customer satisfaction as key performance indicators.
Service excellence has become an essential element in customer
retention and in 2007 no major customer was lost. Revenue
growth was targeted at 24% (£14 million) for the year and
operating profit growth at 98% to £1.3 million.
New Senior Management
It has been necessary to make a number of key appointments
during the year to create a well-balanced management group
suitable for the significant growth which we anticipate. 
Charlie Goulding took up the role of Chief Operating Officer with
particular emphasis on heading the sales function and its delivery
support functions. After a long and successful career with IBM and
latterly with Verizon, he brings the experience needed to drive the
Group into new international markets.
Jeff Dakin joined in January 2008 to head up the IT and product
development areas. Again he joined us after a long and successful
career with firstly Marconi and for many years IBM. His experience
in product design and data centre management is particularly
welcome as these are key areas related to our ability to grow.
Richard Philips joined to add an international dimension to channel
development and marketing, especially for loyalty systems.
Expansion of loyalty systems into new markets is a growth target
for the Group.
Darren Graham has joined Universe to create a new business line
in the Jet Wash, Air and Vacuum vending (“JAV”) area on petrol
forecourts. He is an experienced professional from the JAV arena.
The Board is committed to continued development and
enhancement of the Group’s product range to keep ahead of
anticipated technical and legislative changes.
HTEC
For 2007 , HTEC was the only subsidiary of the Group. HTEC has
occupied a prominent position in the UK forecourt managed
services market for a number of years and in 2007 set out to
expand its range of services and push into international markets
using its relationships with existing global customers. HTEC’s
systems currently run the petrol forecourts of two major
supermarket chains and over 33% (3,000 +) of all UK forecourts
have some HTEC equipment on them. 
After examining HTEC’s business, I concluded that because of the
diverse range of product lines within the business, a divisional
structure would be the optimal way to ensure focus. By
divisionalising it was possible to analyse performance and potential
of the different business lines in order to target funding into the
most appropriate areas. 
The trading divisions are:
i. Retail Systems
ii. International Oils and Loyalty
iii. Jetwash, Airtowers, Vacuums (JAV)
iv. Custom Electronics Manufacturing (CEM)
These are supported by central services including product
development and a data centre. For the UK petrol forecourt
market, HTEC positions itself as an end to end supplier of
complete solutions based on its own industry leading hardware
and software. The business strategy is to move towards a fully
managed service model using these products. Managed services
revenues are now in excess of 50% of turnover enhancing the
quality of earnings of the company from good margin contracted
revenue streams.
Today, HTEC provide Mission Critical Services to a customer base
including: ASDA, Morrisons,  ChevronTexaco, Total Oil and BP
Europe. We are now investing in expanding this business
internationally.
Retail Systems
The core of the HTEC business is the supply of point of sale (POS)
systems to the UK petrol forecourt market. Investment has been
made during the year to expand and repackage the system
elements to allow for expansion into a channel sales model sitting
alongside the traditional direct sales force. Development continues
with the software to improve functionality for the growing
convenience store market and to allow foreign language versions
to be developed. 
During the year HTEC purchased the IP rights to the number plate
recognition software (ANPR) it previously sold as a licensed
product. Investment has been made to upgrade the software
ready for sale through channel partners whilst using the HTEC data
centre to hold and process data. Links are being established to
police databases to enhance the system capability. The rapidly
increasing market for surveillance and security products provides a
growing sales channel for future years.
Revenue grew by 18% to £5.3 million (2006: £4.5 million) with a
gross margin of 32.9%. 4
Chief Executive’s Report (continued)
for the year ended 31 December 2007
International Oils Companies and Loyalty
This division handles the systems that rely on the data centre
infrastructure including on line payment systems and global loyalty
systems. HTEC has developed systems which can collect data
from many of the best known 3rd party POS systems moving it
away from a situation where it could only work with its own
proprietary software. Being independent of POS software allows
HTEC to integrate with a variety of channel partners enabling
better global reach. New product developments are in the main
customer driven and 2008 will see trials of a school meals charging
system in Portugal and a city card system in Spain both projects
showing the flexibility of the HTEC loyalty database software.
HTEC currently process £6 billion worth of EFT transactions per
year and have loyalty schemes with up to 14 million members in a
real time system.
The Iberian office has been bolstered with an additional sales
person and in particular new partnerships in Portugal have led to
the need to open a small office there.
Elsewhere in Europe we have recruited a convenience store
industry expert based in Holland to open channels in northern
Europe.
Revenue grew by 31% to £3.8 million (2006: £2.9 million) with a
gross margin of 70.5%.
Jet Wash, Air and V acuum (JA V)
This new venture has started well winning business resulting in
major accounts. The concept of revenue share from equipment
owned by the supplier and sited on the customers premises allied
to monitoring in real time through the HTEC datacentre adding a
management information feature not available from other
suppliers. This offering combines into an industry leading solution. 
To support this new activity we have purchased the assets and
trade of AIB Services Limited in Bedford since the year end. AIB
has been a leading supplier of JAV equipment for many years and
its manufacturing facility gives us control over quality and supply of
equipment alongside an established service operation. We have
also acquired WSF in Scotland which gives us a northern service
base and true national coverage. JAV operations had little impact
on the 2007 results but will add a substantial new business line in
future years.
Custom Electronic Manufacture
The traditional business of HTEC was subcontract design and
manufacture but over a number of years this had been in decline
to the point that when I joined HTEC either sale or closure seemed
the inevitable option. A strategic review showed that it was
marginally profitable but had operational and sales difficulties. An
immediate disposal was ruled out as impractical. The recruitment
of an experienced manufacturing manager with sales responsibility
and a reorganisation has transformed the performance. We now
have a growing business with a wider customer base. 
Revenue was marginally up to £4.1 million (2006: £3.9 million) with
a gross margin of 12.4%.
Investment in Growth
To achieve the Board’s growth targets, 2007 saw emphasis placed
on investment in the Group’s infrastructure. The recruitment of
new sales staff at all levels, implementation of a CRM system and
a brand relaunch all took place in the year increasing costs by in
excess of £0.6 million.  A programme of trade shows both in the
UK and Europe, product rebranding, website enhancement and
new marketing material have been put in place to support the
growth programme.
The strategic review and product clarification during the year forms
the basis for HTEC’s product development. Product and systems
development during the year has concentrated on moving from a
largely bespoke customer driven model to a pre defined standard
model. This opens up more sales channels and delivers a lower
cost of sale. For the first time in 2007 we successfully trialled on
line authorisation for payment transactions with a supermarket,
rolled out the first phase of a global loyalty scheme for an oil
company and integrated HTEC’s outdoor payment terminals with a
leading fuel pump manufacturer.
I am confident that the new management team will deliver
sustained year on year growth.
Paul Cooper
Chief Executive Officer
30 April 2008 Directors’ Share Options 
Details of share options held by directors during the year over the shares of 5p each in the Company are set out below. The Remuneration
Committee considers and recommends all new long term incentive arrangements for the executive directors and other employees. 
The market price of the company‘s shares at the end of the financial year was 6.4p per 5p share (2006: 13.7p per 5p share) and the range
of market prices during the year was between 6.4p and 12.8p.
J Scholes
P Cooper
EM Paul
AH Grinsell
* Or date of appointment if later
Directors’ share options are exercisable from the date of grant, being 27 June 2007 , and expire ten years from the date of grant.                  
Interests in Shares
Interests in shares have been disclosed in the Director’s Report on page 5.             
On behalf of the Board
J Scholes
Chairman of the Remuneration Committee
30 April 2008
Directors’ Remuneration Report
for the year ended 31 December 2007
5
Directors’ Detailed Emoluments
Executives
P Cooper
RJ Mackie
AH Grinsell
CPF Wines
EM Paul
Non-executives
J Scholes
BL Brinkman
KM Buchanan
P Cooper
M Coster
RJ Mackie
The Company is not required to comply with Schedule 7A of the
Companies Act 1985 or the Listing Rules of the Financial Services
Authority as its shares are traded on AIM; the following disclosures are
therefore made on a voluntary basis.
UNAUDITED INFORMA TION
The Remuneration Committee
The Remuneration Committee consists of the non-executive directors of
the Company.  The role of the Committee is to determine, on behalf of
the Board, the Company’ s policy on executive directors’ and other senior
employees’ remuneration, within set written terms of reference
approved by the Board.  The remuneration of the non-executive directors
is approved by the Board of Directors. As Chairman of the Committee, I
have been asked by the Board to report to you on all remuneration
matters on its behalf.
Remuneration Policy
The remuneration policy of the Company is:
� to provide a suitable remuneration package to attract, motivate and
retain executive directors who will run the Company successfully;
� to formulate a package that will include a significant proportion of
performance related pay and to align the directors’ personal interests
to those of the shareholders; and
� to ensure that all long term incentive schemes for the directors are
approved by the shareholders.
The Remuneration Committee members are expected to draw on their
experience to judge where to position the Company, relative to other
companies and other Group rates of pay, when considering
remuneration packages for executives.  The committee may use outside
professional advice if they consider it necessary and will consult with the
non - executive Chairman before finalising the remuneration packages.
Benefits in kind include the provision of medical insurance premiums.
T wo executive directors participate in the Company’ s pension plan. The
pension contributions represent the Company’ s contribution to defined
contribution pension plans.  Bonuses and benefits in kind are not
pensionable.
All of the executive directors have service contracts, which provide for
notice periods of no more than one year.  All the non-executive directors
have service contracts, which provide for notice periods of three months.
The Remuneration Committee recognises the importance of appropriate
incentive arrangements in assisting with the recruitment and retention of
senior executives.  The Remuneration Committee believes that share
based incentives align the interests of employees with those of
shareholders but recognises that options to acquire share at their market
value on the date of grant are not always the most appropriate way to
achieve this.
An EMI option scheme was set up on 27 June 2007 for the executive
directors of Universe Group plc and an unapproved option scheme was
set up for the non–executive Chairman of Universe Group plc on 27 June
2007 . These options will lapse if a) the directors leave employment for
any reason other than a Good Reason as defined within the schemes
and b) at the end of the tenth anniversary of the Date of Grant.
The Long T erm Incentive Plan (“L TIP”) for employees (including certain
executive directors) selected by the Board (but taking account of the
recommendations of the Remuneration Committee) has matched shares
purchased of 27 4,516 by certain directors and employees on 27 June
2007 and there are no shares held in trust as at the year end.
Salary and
fees 
£’000
81
-
64
-
80
51
20
-
-
9
6
At 1 Jan
2007*
-
-
-
-
-
Benefits 
£’000 
6
-
5
-
7
-
-
-
-
-
-
Granted
1,250,000
1,250,000
625,000
625,000
3,750,000
Annual
bonus 
£’000 
-
-
-
-
-
-
-
-
-
-
-
Exercised
-
-
-
-
-
Pension
contributionl  
£’000 
7
-
6
-
8
-
-
-
-
-
-
Lapsed
-
-
-
-
-
2007
total  
£’000 
94
-
75
-
95
51
20
-
-
9
6
At 31 Dec
2007
1,250,000
1,250,000
625,000
625,000
3,750,000
2006
total  
£’000 
-
32
96
63
97
-
15
10
6
-
-
Exercise
price
8p
8p
8p
8p
Scheme
Unapproved
EMI
EMI
EMI Corporate Governance Report
for the year ended 31 December 2007
6
Corporate Governance
The Board is accountable to the Company’s shareholders for good
governance and this statement describes how the principles of
good corporate governance are applied by the Company.
The Group is not required to comply with the Combined Code on
Corporate Governance issued by the UK Listing Authority, and
does not currently comply with all of its requirements.  However,
the Group does voluntarily comply with many of the requirements
of the Combined Code as described in this statement and the
Directors’ Remuneration Report.
The Board
As at the date of signing of these accounts, the Board comprises
two executive directors and three non-executive directors.  
The Board meets formally at least ten times a year and full
information is given to the directors to enable the Board to
function effectively and to allow the directors properly to fulfil
their responsibilities.  Board papers are usually distributed four
days in advance of meetings and decisions may be deferred if
directors require further information to be made available to them.
The Company Secretary is responsible to the Board for the
timeliness of the information provided to it.
Board Committees
In furtherance of the principles of Corporate Governance the
Board has appointed the following Committees, each of which has
formal terms of reference.  The membership of the Committees is
shown below.
Audit Committee
The Audit Committee, comprising the non-executives, is chaired
by John Scholes and meets two or three times a year with the
Executive Directors and representatives of the auditors in
attendance as required.  The Committee assists the Board in the
discharge of its duties concerning the announcements of results
and the Annual Report and Accounts and the maintenance of
proper internal controls; it reviews the auditors’ findings and
considers Group Accounting policies and the compliance of those
policies with applicable legal and accounting standards.
Remuneration Committee
The Remuneration Committee, comprising the non-executive
directors under the chairmanship of John Scholes, sets the
Group’s overall remuneration policy.  It determines, on behalf of
the Board, the remuneration and other benefits of the executive
directors.  It meets on a regular basis, usually twice a year and
additionally whenever required.  The Directors’ Remuneration
Report is set out on page 5.
Internal Controls
The directors are responsible for the Group’s system of internal
control.  However such a system is designed to manage rather
than eliminate the risk of failure to achieve business objectives
and can provide only reasonable and not absolute assurance
against misstatement or loss.  The Directors have put in place an
organisational structure and framework of controls, which is
periodically reviewed for its effectiveness.  The key financial
procedures within the Group’s system of internal control are as
follows:
� There is a comprehensive budgeting system with the annual
budget being approved by the Board.  Actual results and
updated forecasts are prepared regularly and compared against
budget.
� The annual capital investment budget is approved by the Board
together with significant individual items prior to commitment.
� Significant treasury items are reserved for the Board. 
Going concern 
After making enquiries, the directors have a reasonable
expectation that the Group has adequate resources to continue
operating for the foreseeable future. For this reason, the going
concern basis continues to be adopted in preparing the financial
statements. 7
Directors’ Report
for the year ended 31 December 2007
Directors Report 
The directors present their report and the audited accounts for the
year ended 31 December 2007 .
Business review and principal activities
The principal activity of the company is as a holding company of
HTEC limited and now Jet Set Wash Systems Limited. HTEC limited
is the only current substantial trading entity and is engaged in the
provision of managed services, payment and loyalty systems for the
Petrol forecourt and Retail sector. HTEC continues to invest in
developing new equipment and systems for its markets. Jet Set is a
new subsidiary formed in 2008 that will focus on the provision of car
wash and valeting services.
For 2007 there was an operating profit before exceptional items of
£842,000 (2006: £656,000). The company's loss for the year after
interest and exceptional items was £1,882,000 (2006: £6,519,000).
As shown in the company’s income statement on page 10, HTEC’s
performance, under continuing operations was above the level of
2006, before the write off of development costs, mainly due to the
increased rollout of chip and pin and loyalty products to major
customers.
The UK market remains the key area of operations for HTEC,
accounting for just over 90% of sales. The directors intend to further
expand sales into Europe, building on the customer base in Iberia
and Holland.
The balance sheet on page 12 of the financial statements shows
that the company’s financial position has strengthened since 2006
due to improved trading and the fund raising in April 2007 . It has
been decided that due to changes in technology, development costs
incurred prior to 2006 should be written off. This write off has not
had an adverse impact on cash resources.
The focus of the company now is to grow HTEC and the new Jet
Set operations to their full potential.
Key performance indicators (KPI’s)
There are three main KPI’s that management monitor at HTEC:
� The directors monitor the order inflow at HTEC each day to
ensure that annual sales forecasts are on schedule.
� The directors monitor detailed cost of sales documents, which
are prepared each month in order that forecast product margins
are achieved.
� The directors constantly liaise with customers to ensure that
contracted SLA ’s (service level agreements) on forecourt trading
are maintained so that customer’s operations continue to
operate efficiently.
The performance of HTEC against these KPIs is discussed in the
Chief Executive’s Report on page 3.
Principal risks and uncertainties facing the company
The market for petrol forecourts equipment and services remains
steady. The company manages any risk of reduced equipment sales
by providing added value services to customers, having fast response
time not only in supplying products but in handling all customer
queries and maintaining strong relationships with customers.
Financial Instruments
Information about the use of financial instruments by the company
and its subsidiaries, and the group’s financial risk management
policies is given in note 23.
Environment
The company’s policy with regard to the environment is to ensure
that we understand and effectively manage the actual and
potential environment impact of our activities. Our operations are
conducted such that we comply with all the legal requirements
relating to the environment in all areas where we carry out our
business. During the period covered by this report HTEC has not
incurred any fines or penalties or been investigated for any breach
of environment regulations.
It is company policy to continually carry out research and
development on new products and processes to minimise the
impact of its operations on the environment.
Two new pieces of environmental legislation came into effect
recently, the EC Directive on Waste Electrical and Electronic
Equipment (WEEE – effective January 2007) and the EC Directive
on the Restriction of the use of Certain Hazardous Substances in
Electrical and Electronic Equipment (RoHS – effective 2006). The
WEEE Directive seeks to limit the total volume of used electronic
equipment disposal and sets targets for the recovery rate and level
of recycling  for this equipment. All producers of such equipment
will be obliged to take back used equipment. Additionally the RoHS
Directive seeks to prevent the use of hazardous substances such
as lead, mercury, cadmium and Polybrominated Blphenyls (PBBs)
in the production of electrical and electronic equipment. The
directors have engaged independent experts who have advised
them that their current policies will be sufficient to comply with
these new directives. In addition, the company is also carrying out
a review in order to set targets for increased energy efficiency,
reduced volumes of waste and increased levels of recycling across
all areas of operation.
Employees
The quality and commitment of our people has played a major role in
our business success. This has been demonstrated in many ways,
including improvements in customer satisfaction, the development of
our product lines and the flexibility they have shown in adapting to
changing business requirements and new ways of working. Employee
turnover remains below the 10% target we have set.
Research and development
The company has a continuing commitment to a high level of
research and development. During the year expenditure on
research and development was £813,000 (2006: £568,000).
Research and development in the year concentrated on further
improvements to the chip and pin products and enhancements to
the online loyalty and back-office products.
Dividends
The directors do not propose the payment of a dividend (2006:
£nil).
Supplier payment policy
The Group’s policy is to settle terms of payment with suppliers
when agreeing the terms of each trans-action, ensure that
suppliers are made aware of the terms of payment and abide by
the terms of payment. Trade creditors were equivalent to 60 (2006:
60) days’ purchases, based on the average daily amount invoiced
by suppliers during the year.
Directors’ indemnities
The company has made qualifying third party indemnity provisions
for the benefit of its directors, which were made during the year
and remain in force at the date of this report. 8
Directors’ Report (continued)
for the year ended 31 December 2007
Substantial shareholdings
As at 30 April 2008 the company had been notified of the following
voting rights as a shareholder of the company
% of voting
No. of rights and 
ordinary issued share 
Shareholder shares capital
Ennismore fund management 18,217 ,122 15.9
R J Mackie 8,467 ,663 7 .4
Singer and Friedlander 5,832,745 5.1
Post balance sheet events
The company has formed a new subsidiary company to focus on
the provision of its car wash and valeting services. The new
company is called Jet Set Wash Services Limited. Jet Set will
comprise the Company's existing car wash and valeting services
together with two new acquisitions announced in February 2008.
Universe has acquired the stock and certain assets of AIB Limited
and has signed heads of terms for the acquisition of WSF Services
Limited. Further details can be found in Note 31.
Directors
The directors who served throughout the year were as follows:
J R Scholes (Chairman) (appointed 5.1.07)
P Cooper 
R J Mackie (resigned 14.5.07
B L Brinkman
A H Grinsell (resigned 2.10.07)
E M Paul
M Coster (appointed 16.8.07)
Those directors serving at the end of the year had an interest in
the share capital of the company at 31 December as follows:
Ordinary shares of 5p each
2006
2007 (or date of appointment)
J Scholes 690,000 -
P Cooper 215,000 -
B L Brinkman 886,147 886,147
EM Paul 204,951 94,500
M Coster 250,000 -
The directors had no other disclosable interest under the
Companies Act 1985 in the shares of the company or of any other
Group company. 
Details of the director’s share options are provided in the Director’s
remuneration report on page 5.
In accordance with the Articles of Association, J Scholes and M
Coster offer themselves for appointment at the forthcoming
Annual General Meeting.
Statement of directors’ responsibilities for the financial
statements
The directors are responsible for preparing the Annual Report,
Directors' Remuneration Report and the financial statements in
accordance with applicable law and regulations.
Company law requires the directors to prepare financial
statements for each financial year. The directors are required by
the IAS Regulation to prepare the group financial statements under
IFRSs as adopted by the European Union and have also elected to
prepare the parent company financial statements in accordance
with IFRSs as adopted by the European Union. The financial
statements are also required by law to be properly prepared in
accordance with the Companies Act 1985 and Article 4 of the IAS
Regulation.  
International Accounting Standard 1 requires that financial
statements present fairly for each financial year the company's
financial position, financial performance and cash flows.  This
requires the faithful representation of the effects of transactions,
other events and conditions in accordance with the definitions and
recognition criteria for assets, liabilities, income and expenses set
out in the International Accounting Standards Board's 'Framework
for the preparation and presentation of financial statements'.  In
virtually all circumstances, a fair presentation will be achieved by
compliance with all applicable IFRSs.  However, directors are also
required to:
� properly select and apply accounting policies;
� present information, including accounting policies, in a manner
that provides relevant, reliable, comparable and understandable
information;
� provide additional disclosures when compliance with the
specific requirements in IFRSs are insufficient to enable users
to understand the impact of particular transactions, other
events and conditions on the entity's financial position and
financial performance; and
� make an assessment of the company’s ability to continue as a
going concern.
The directors are responsible for keeping proper accounting
records that disclose with reasonable accuracy at any time the
financial position of the company and enable them to ensure that
the financial statements comply with the Companies Act 1985.
They are also responsible for safeguarding the assets of the
company and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of
the corporate and financial information included on the company's
website. Legislation in the United Kingdom governing the
preparation and dissemination of financial statements may differ
from legislation in other jurisdictions.
Disclosure of information to auditors
At the date of making this report each of the company’s directors,
as set out on Page 33, confirm the following:
� so far as each director is aware, there is no relevant information
needed by the company’s auditors in connection with preparing
their report of which the company’s auditors are unaware, and
� each director has taken all steps that he ought to have taken as
a director in order to make himself aware of any relevant
information needed by the company’s auditors in connection
with preparing their report and to establish that the company’s
auditors are aware of that information.
This confirmation is given and should be interpreted in accordance
with the provisions of s234ZA of the Companies Act 1985.
Auditors
RSM Robson Rhodes LLP resigned as auditors during the period
and Deloitte & Touche LLP were appointed to fill the vacancy
arising. A resolution to reappoint them will be proposed at the
forthcoming annual general meeting. 
Approval
The report of the directors was approved by the Board on 30 April
2008 and signed on its behalf by:
E. M. Paul
Director 9
We have audited the Group and parent company financial
statements (“the financial statements”) of Universe Group plc for
the year ended 31 December 2007 which comprise the
consolidated income statement, the Group and Company
statement of changes in equity, the Group and Company balance
sheets, the Group and Company cash flow statements and the
related notes 1 to 34. These financial statements have been
prepared under the accounting policies set out therein.
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 in an auditors’ report and for no other
purpose.  To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the company and
the company’s shareholders as a body, for our audit work, for this
report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual Report and
the financial statements in accordance with applicable law and
International Financial Reporting Standards (IFRSs) as adopted by
the European Union are set out in the Statement of Directors’
Responsibilities.
Our responsibility is to audit the financial statements in
accordance with relevant legal and regulatory requirements and
International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial
statements give a true and fair view and whether the financial
statements are properly prepared in accordance with the
Companies Act 1985. 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 read the other information contained in the Annual Report as
described in the contents section 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 further
information outside the Annual Report.. 
Basis of audit opinion
We conducted our audit in accordance with International Standards
on Auditing (UK and Ireland) issued by the Auditing Practices
Board.  An audit includes examination, on a test basis, of evidence
relevant to the amounts and disclosures in the financial
statements.  It also includes an assessment of the significant
estimates and judgements made by the directors in the
preparation of the financial statements, and of whether the
accounting policies are appropriate to the 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 are free from material
misstatement, whether caused by fraud or other irregularity or
error.  In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the financial
statements.
Opinion
In our opinion:
� the Group financial statements give a true and fair view, in
accordance with IFRSs as adopted by the European Union, of
the state of the Group’s affairs as at 31 December 2007 and of
its loss for the year then ended;
� the parent company’s financial statements give a true and fair
view, in accordance with IFRSs as adopted the European Union
as applied in accordance with the provisions of the Companies
Act 1985, of the state of the parent company’s affairs as at 31
December 2007; 
� the financial statements 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.
Deloitte & Touche LLP
Chartered Accountants & Registered Auditors
Southampton, United Kingdom
30 April 2008
Independent Auditor’s Report to the Members of Universe Group plc 10
Consolidated Income Statement
for the year ended 31 December 2007
Notes
2,3,4
2,5
2
5,6
8
9
7
10
10
Continuing operations
Revenue
Cost of sales
Gross profit
Administrative expenses
Operating profit/(loss)
Finance costs 
Profit/(loss) before taxation
Taxation
Loss for the year from continuing operations
Loss for the year from discontinued operations
Loss for the year attributable to equity shareholders
Loss per share
Basic and diluted
Continuing
Discontinued
2007
T otal
£000
13,186
(8,247)
4,939
(6,512)
(1,573)
(309)
(1,882)
-
(1,882)
-
(1,882)
(1.85)
-
(1.85)
2006
Total
£000
1 1,346
(7 ,91 1)
3,435
(6,262)
(2,827)
(685)
(3,512)
-
(3,512)
(3,007)
(6,519)
(5.41)
(4.63)
(10.04)
Before
exceptional
items
£’000
13,186
(8,247)
4,939
(4,097)
842
(189)
653
Exceptional
items
£’000
-
-
-
(2,415)
(2,415)
(120)
(2,535) Group
At 1 January 2007
Shares issued
Share options issued                                         
Loss for the year attributable to
equity shareholders
At 31 December 2007
At 1 January 2006
Revaluation change
Shares issued
Loss for the year attributable to
equity shareholders
Dividends to shareholders
Translation difference
At 31 December 2006
Company
At 1 January 2007
Shares issued
Share options issued
Loss for the year attributable to
equity shareholders
At 31 December 2007
At 1 January 2006
Shares issued
Loss for the year attributable to
equity shareholders
Dividends to shareholders
At 31 December 2006
Statement of changes in equity
for the year ended 31 December 2007
11
Profit and
loss
£’000
(3,619)
-
-
(1,882)
(5,501)
3,064
-
-
(6,519)
(164)
-
(3,619)
Profit and
loss
£’000
636
-
-
(2,033)
(1,397)
8,403
-
(7 ,603)
(164)
636
T rans-
lation
reserve 
£’000
(181)
-
-
-
(181)
(169)
-
-
-
-
(12)
(181)
Merger
reserve on
acquisi-
tion
£’000
476
-
-
476
476
-
-
-
476
Merger
reserve on
acquisi-
tion
£’000
8,603
-
-
-
8,603
8,603
-
-
-
-
-
8,603
Share
premium
£’000
10,1 1 7
636
-
10,753
9,823
294
-
-
10,1 1 7
Revalua-
tion
Reserve
£’000
-
-
-
-
-
131
(131)
-
-
-
-
-
Equity
reserve
£’000
-
-
11 0
-
100
39
(39)
-
-
-
Share
premium
£’000
10,1 1 7
636
-
-
10,753
9,823
-
294
-
-
-
10,1 1 7
Share
Capital
£’000
3,281
2,466
-
-
5,7 47
3,147
134
-
-
3,281
Equity
reserve
£’000
-
-
11 0
-
11 0
39
-
(39)
-
-
-
-
Share
capital
£’000
3,281
2,466
-
-
5,7 47
3,147
-
134
-
-
-
3,281
Total
Equity
£’000
18,201
3,102
11 0
(1,882)
19,531
24,638
(131)
389
(6,519)
(164)
(12)
18,201
Total
Equity
£’000
14,510
3,102
11 0
(2,033)
15,689
21,888
389
(7 ,603)
(164)
14,51 0 2006
£000
17 ,250
2,655
1,472
-
21,377
1,205
1,793
5
3,003
854
3,857
25,234
(3,412)
(240)
(3,140)
(6,792)
(154)
(6,946)
(31)
-
(56)
(87)
(7 ,033)
18,201
3,281
-
10,1 17
8,603
(181)
(3,619)
18,201
2007
£000
-
-
-
17 ,117
17 ,117
-
825
45
870
-
870
17 ,987
(122)
-
(700)
(822)
-
(822)
(318)
(1,158)            
-
(1,476)
(2,298)
15,689
5,747
110
10,753
476
-
(1,397)
15,689
Notes
12
13
14
15
16
17
18
19
20
21
18
21
22
24
25
32
2007
£000
17 ,250
800
2,170
-
20,220
1,768
2,720
93
4,581
-
4,581
24,801
(3,119)
(373)
(888)
(4,380)
-
(4,380)
(890)
-
-
(890)
(5,270)
19,531
5,747
110
10,753
8,603
(181)
(5,501)
19,531
2006
£000
-
-
-
17 ,1 17
17 ,1 17
-
20
871
891
204
1,095
18,212
(627)
-
(1,563)
(2,190)
-
(2,190)
-
(1,512)            
-
(1,512)
(3,702)
14,510
3,281
-
10,1 17
476
-
636
14,510
Balance Sheets
for the year ended 31 December 2007
12
Group Company
Non-current assets
Goodwill
Development costs
Property, plant and equipment
Investments
Current assets
Inventories
Trade and other receivables
Cash and cash equivalents
Assets held for sale
Total assets
Current liabilities
Trade and other payables
Current tax liabilities
Short term borrowings
Liabilities directly associated with assets classified as 
held for sale
Non-current liabilities
Medium term borrowings
Other liabilities
Deferred tax liabilities
Total liabilities
Net assets
Equity
Share capital
Equity reserve
Share premium
Other reserves
Translation reserve
Profit and loss account
Total equity
The financial statements were approved by the board of directors and authorised for issue on 30 April 2008.  They were signed on its 
behalf by
E. M. Paul
Director  Cash Flow Statements
for the year ended 31 December 2007
2007 
£000
(1,867)
-
-
-
110
(1,757)
-
(601)
(792)
(166)
(27)
-
(3,343)
-
(40)
-
(40)
-
(545)
3,102
-
2,557
(826)
871
-
45
2006 
£000
(1,148)
(6,280)
-
6,340
-
(1,088)
-
48
1,542
(176)
(255)
-
71
-
-
-
-
-
(454)
389
-
(65)
6
865
-
871
13
2006 
£000
(2,827)
(3,334)
629
5,624
-
92
590
951
175
(326)
(255)
(94)
1,133
(79)
(366)
-
(445)
(166)
(979)
389
-
(756)
(68)
(393)
(12)
(473)
2007 
£000
(1,573)
-
601
2,306
110
1,444
(563)
(777)
(236)
(309)
-
20
(421)
(371)
(650)
550
(471)
(101)
(3,414)
3,102
1,871
1,458
566
(473)
-
93
Group Company
Cash flows from operating activities:
Operating loss
Continuing
Discontinued
Depreciation and amortisation
Impairments
Share-based payment expense
Movement in working capital:
(Increase)/decrease in inventories
(Increase)/decrease in receivables
(Decrease)/increase in payables
Interest paid
Dividends paid
Tax paid
Net cash (outflow)/inflow from operating activities
Cash flows from investing activities:
Purchase of plant, property & equipment
Expenditure on product development
Proceeds from assets held for sale
Net cash outflow from investing activities:
Cash flow from financing activities:
Repayments of obligations under finance leases
Repayment of borrowings
Issue of shares net of expenses
New bank loans raised
Net cash inflow/(outflow) from financing
Increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Exchange differences
Cash and cash equivalents at end of year 1. Significant Accounting Policies
General information
Universe Group plc is a company incorporated in the United
Kingdom under the Companies Act 1985. The address of the
registered office is given on page 33. The nature of the Group’s
operations and its principal activities are set out on page 7 .
In the current year, the Group has adopted IFRS 7 Financial
Instruments: Disclosures which is effective for annual reporting
periods beginning on or after 1 January 2007 , and the related
amendment to IAS 1 Presentation of Financial Statements. The
impact of the adoption of IFRS 7 and the changes to IAS 1 has
been to expand the disclosures provided in these financial
statements regarding the Group’s financial instruments and
management of capital (see note 23). Four Interpretations issued
by the International Financial Reporting Interpretations Committee
are effective for the current period. These are: IFRIC 7 Applying the
Restatement Approach under IAS 29, Financial Reporting in
Hyperinflationary Economies; IFRIC 8 Scope of IFRS 2; IFRIC 9
Reassessment of Embedded Derivatives; and IFRIC 10 Interim
Financial Reporting and Impairment. The adoption of these
Interpretations has not led to any changes in the Group’s
accounting policies.
At the date of authorisation of these financial statements, the
following Standards and Interpretations which have not been
applied in these financial statements were in issue but not yet
effective:
IFRS 8 Operating segments
IFRIC 11 IFRS 2 – Group and Treasury Share Transactions
IFRIC 12 Service Concession Arrangements
IFRIC 14  IAS 19—The Limit on a Defined Benefit Asset, Minimum
Funding Requirements and their Interaction
The directors anticipate that the adoption of these Standards and
Interpretations in future periods will have no material impact on
the financial statements of the Group except for additional
segment disclosures when IFRS 8 comes into effect for periods
commencing on or after 1 January 2009.
Basis of consolidation
The financial statements have been prepared under the historic
cost convention and in accordance with applicable International
Financial Reporting Standards (IFRS) as adopted for use in the EU
and as applied in accordance with the Companies Act 1985.
A summary of the more significant accounting policies, which have
been applied consistently, is set out below.
As permitted by section 230 of the Companies Act 1985, the
income statement of the parent company has not been separately
presented in the financial statements.  The parent company’s profit
for the year is disclosed in the company statement of changes in
equity. 
Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the
Company (its subsidiaries) made up to 31 December each year.
Control is achieved where the Company has the power to govern
the financial and operating policies of an investee entity so as to
obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year
are included in the consolidated income statement from the
effective date of acquisition or up to the effective date of disposal,
as appropriate.
All intra Group transactions, balances, income and expenses are
eliminated on consolidation.  
Goodwill
Goodwill arising on acquisition represents the excess of the fair
value of the consideration given, plus associated costs, for a
business, over the fair value of the net assets acquired. Goodwill is
initially recognised as an asset at cost and is subsequently
measured at cost less any accumulated impairment losses.
Goodwill arising on acquisition is capitalised. In respect of
acquisitions prior to 1 January 2004, goodwill is included at the
amount recorded previously under UK GAAP .
In accordance with IFRS 3 Business Combinations goodwill is not
amortised.
For the purpose of impairment testing, goodwill is allocated to
cash generating units, which are tested for impairment annually, or
more frequently if impairment indicators are found.  If the
recoverable amount is found to be less than the carrying value,
impairment is allocated first to goodwill and then pro rata to other
assets in the cash-generating unit.  
Impairment of tangible and intangible assets excluding
goodwill
At each balance sheet date, the group reviews the carrying
amounts of its tangible and intangible assets to determine
whether there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent
of the impairment loss (if any). Where the asset does not generate
cash flows that are independent from other assets, the group
estimates the recoverable amount of the cash-generating unit to
which the asset belongs. An intangible asset with an indefinite
useful life is tested for impairment annually and whenever there is
an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell
and value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is
estimated to be less than its carrying amount, the carrying amount
of the asset (cash-generating unit) is reduced to its recoverable
amount. An impairment loss is recognised as an expense
immediately, unless the relevant asset is carried at a revalued
amount, in which case the impairment loss is treated as a
revaluation decrease.
Where an impairment loss subsequently reverses, the carrying
amount of the asset (cash-generating unit) is increased to the
revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount
that would have been determined had no impairment loss been
recognised for the asset (cash-generating unit) in prior years. A
reversal of an impairment loss is recognised as income
immediately, unless the relevant asset is carried at a revalued
amount, in which case the reversal of the impairment loss is
treated as a revaluation increase.
Borrowing costs
Borrowing costs are not capitalised. Loan issue costs are
accounted for on an accrual basis in profit or loss, and are added to
the carrying amount of the instrument to the extent that they are
not settled in the period in which they arise.
14
Notes to the Accounts
for the year ended 31 December 2007 15
Notes to the Accounts (continued)
for the year ended 31 December 2007
Leasing
Where assets are acquired under finance leases (including hire
purchase contracts), which confer rights and obligations similar to
those attached to owned assets, the amount representing the
outright purchase price of such assets is included in property, plant
and equipment. Depreciation is provided in accordance with the
accounting policy below. The capital element of future finance
lease payments is included in creditors and the interest element is
charged to the income statement over the period of the lease in
proportion to the capital element outstanding. 
Expenditure on operating leases is charged to the income
statement on a straight line basis.
Foreign currencies 
The individual financial statements of each group company are
presented in the currency of the primary economic environment in
which it operates (its functional currency). For the purposes of the
consolidated financial statements, the results and financial position
of each group company are expressed in pounds sterling, which is
the functional currency of the Company, and the presentation
currency for the consolidated financial statements.
Transactions in foreign currencies are recorded using the rate of
exchange ruling at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies are translated
using the rate of exchange ruling at the balance sheet date and the
gains and losses on translation are included in the income
statement.
The assets and liabilities of overseas subsidiary undertakings are
translated at the closing exchange rates. Profit and loss accounts
of such undertakings are consolidated at the average rates of
exchange during the year. Gains and losses arising on these
transactions are taken to reserves.
Pension costs 
The Group operates a defined contribution scheme. The assets of
the scheme are held separately from those of the Group in an
independently administered fund. The pension costs charged
represent contributions payable by the Group to the fund together
with the administration charge of the fund. In addition the Group
continues to contribute to personal pension plans for certain
employees.
T axation
The tax expense represents the sum of the tax currently payable
and deferred tax.
The tax currently 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 and 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
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 the 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 taxable 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. Such assets and liabilities are not
recognised if the temporary difference arises from the initial
recognition of goodwill or the initial recognition (other than in a
business combination) of other assets and liabilities in a
transaction that affects neither the taxable profit nor the
accounting profit.
Deferred tax liabilities are recognised for taxable temporary
differences arising on investment in sub-sidiaries and associates,
and interests in joint ventures, except where the Group is able to
control the reversal of the temporary difference and it is probable
that the temporary difference will not reverse in the foreseeable
future.
The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient tax profits will be available to allow all or
part of the asset to be recovered.
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 in the income
statement, except when it relates to items charged or credited
directly to equity, in which case the deferred tax is also dealt with
in equity.
Deferred tax assets and liabilities are offset when there is legally
enforceable right to set off current tax assets against current tax
liabilities and when they relate to income taxes levied by the same
taxation authority and the Group intends to settle its current tax
assets and liabilities on a net basis.
Property, plant and equipment
The cost of property, plant and equipment is their purchase price,
together with any incidental costs of acquisition.
Depreciation is charged so as to write off the cost of property,
plant & equipment less residual value, on a straight-line basis over
the expected useful lives of the assets concerned. 
The principal annual rates used for this purpose are:
Computer and office equipment 25%
Operational equipment 14 - 33%
Leasehold improvements:  Over the lease term subject to
maximum of 20 years
Where there is evidence of impairment, fixed assets are written
down to a recoverable amount. Any such write down is charged to
operating profit.
Assets under finance leases are depreciated over useful economic
life on the same basis as owned assets or, where shorter, over the
term of the relevant lease.
Non current assets held for sale
Non current assets (and disposal groups) classified as held for sale
are measured at the lower of carrying amount and fair value less
costs to sell.
Non current assets and disposal groups are classified as held for
sale if their carrying amount will be recovered through a sale
transaction rather than through continuing use. This condition is
regarded as met only when the sale is highly probable and the
asset (or disposal group) is available for immediate sale in its
present condition.  Management must be committed to the sale,
which should be expected to qualify for recognition as a completed
sale within one year from the date of classification. Notes to the Accounts (continued)
for the year ended 31 December 2007
Revenue recognition
Revenue is measured at the fair value of the consideration
received or receivable and represents amounts receivable for
goods and services in the normal course of business, net of
discounts, VAT and other sales related taxes.
Sales of goods are recognised when goods are delivered and title
has passed. Revenues from service contracts are recognised
evenly over the contractual period. 
Where sales of goods and services involve the provision of
multiple elements such as licence fees, installation fees and
maintenance fees, the appropriate revenue recognition convention
is then applied to each element. The consideration allocated to
each element is measured by reference to their fair value. 
Development expenditure
Development expenditure relating to specific projects intended for
commercial exploitation is capitalised as an intangible fixed asset
where the following conditions are met:
� an identifiable asset is being created
� it is probable that the asset created will generate future
economic benefits, and
� the development cost of the asset can be measured reliably.
Such expenditure is amortised over the period during which the
benefits of the project are expected to arise. Expenditure on
research activities is recognised as an expense in the period in
which it is incurred.
Inventories
Inventories are stated at the lower of cost and net realisable value.
Cost comprises direct materials and, where applicable, direct
labour costs and those overheads that have been incurred in
bringing the inventories to their present location and condition.
Cost is calculated using the weighted average method. Net
realisable value represents the estimated selling price less all
estimated costs of completion and costs to be incurred in
marketing, selling and distribution. 
Financial instruments
Financial assets and financial liabilities are recognised on the
Group’s balance sheet when the Group becomes a party to the
contractual provisions of the instrument.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand
deposits, and other short-term highly liquid investments that are
readily convertible to a known amount of cash and are subject to
an insignificant risk of changes in value. 
Trade payables
Trade payables are not interest-bearing and are stated at their
nominal value.  
Borrowings
Interest bearing bank loans and overdrafts are recorded at the
proceeds received, net of direct issue costs.  Finance charges,
including premiums payable on settlement or redemption and
direct issue costs, are accounted for on an accrual basis in profit or
loss, and are added to the carrying amount of the instrument to
the extent that they are not settled in the period in which they
arise. 
Equity instruments
Equity instruments issued by the Company are recorded at the
proceeds received, net of direct issue costs. 
Trade receivables
Trade receivables do not carry any interest and are stated at their
nominal value as reduced by appropriate allowances for estimated
irrecoverable amounts. 
Financial liabilities and equity
Financial liabilities and equity instruments are classified according
to the substance of the contractual arrangements entered into. An
equity instrument is any contract that evidences a residual interest
in the assets of the Group after deducting all of its liabilities.
Share-based payment
The group has applied the requirements of IFRS 2 Share-based
Payment. In accordance with the transitional provisions, IFRS 2
has been applied to all grants of equity instruments after 7
November 2002 that were unvested at 1 January 2005.
The group issues equity-settled share-based payments to certain
employees. Equity-settled share-based payments are measured at
fair value (excluding the effect of non market-based vesting
conditions) at the date of grant. The fair value determined at the
grant date of the equity-settled share-based payments is expensed
on a straight-line basis over the vesting period, based on the
group’s estimate of shares that will eventually vest and adjusted
for the effect of non market-based vesting conditions.
Fair value is measured by use of the Black Scholes model. The
expected life used in the model has been adjusted, based on
management’s best estimate, for the effects of non-transferability,
exercise restrictions, and behavioural considerations.
Critical estimates and judgements
In the process of applying the Group’s accounting policies, which
are described above, management has made the following
judgements and estimations about the future that have the most
significant effect on the amounts recognised in the financial
statements.  The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised if the
revision affects only that period, or in the period of the revision and
future periods if the revision affects both current and future
periods.
Impairment of goodwill
The carrying value of goodwill at the year end is £17 .3 million
(2006: £17 .3 million). An annual impairment review is required
under IFRS 3 ‘Business combinations’ involving judgement of the
future cash flows for cash-generating units. Management prepare
such cash flow forecasts derived from the most recent budgets
approved by the Board.
Recoverability of capitalised development costs
The capitalisation of development expenditure is a requirement of
IAS 38 ‘Intangible Assets’. All capitalised and ongoing projects are
reviewed regularly to ensure they meet the criteria for
capitalisation.
As a result of new technology and development, management
considered it appropriate to write down the carrying value of
projects relating to payment terminal hardware which may not
recover their costs in future sales. This has resulted in a charge to
the income statement of £2.3 million (2006: £nil).
16 Notes to the Accounts (continued)
for the year ended 31 December 2007
2007
£000
13,186
(8,247)
4,939
(4,097)
842
2006
£000
11,346
(7 ,911)
3,435
(2,779)
656
2. Operating profits on continuing operations before exceptional items
Revenue
Cost of sales
Gross profit
Administrative expenses
Operating profit before non-recurring items
3. Revenue analysis
Revenue consists of £6,219,000 from sales of products – hardware and software – and £6,967 ,000 from the provision of services (2006:
£5,864,000 sale of products, £5,482,000 provision of services). 
4. Segment information
The Group now has one business segment, HTEC Limited, a retail and information systems provider. All material HTEC operations are in the UK.
For management purposes, HTEC Limited is currently organised into four trading divisions: International Oils and Loyalty, Manufacturing and
Repair, Retail and Jet Set. Accordingly, further information is presented below on a divisional basis. No information is given for the Jet Set division
as this new business had little impact on the results. 
It is not currently possible to present segment assets and liabilities on a divisional basis.
“Currency” refers to discontinued operations in 2006 and “HTEC” and “Head Office” to continuing operations.  
Revenue all external 
Gross profit
Administrative expenses
Operating profit/(loss) 
before exceptional items
Exceptional items
Operating loss
Unallocated items:
Finance costs
Taxation
Loss for the year 
Total assets
Total liabilities 
Net book amount
Other information:
Depreciation and amortisation
Impairment of development costs
Capital expenditure: 
Tangible assets
Intangible assets
Total
T otal
2007
£000
13,186
4,939
(4,097)
842
(2,415)
(1,573)
(309)
-
(1,882)
24,801
(5,270)
19,531
601
(2,306)
1,101
650
1,751
Head Office
2007
£000
-
-
70
70
-
70
201
(1,140)
(939)
-
-
-
-
-
HTEC
2007
£000
13,186
4,939
(4,167)
772
(2,415)
(1,643)
24,600
(4,130)
20,470
601
(2,306)
1,101
650
1,751
Retail
2007
£’000
5,301
1,753
Manufacturing
& repair
2007
£’000
4,086
507
Int’l Oils
2007
£000
3,799
2,679
17 18
Notes to the Accounts (continued)
for the year ended 31 December 2007
4. Segment information (continued)
Revenue - all external 
Gross profit
Administrative expenses
Operating profit/(loss) 
before exceptional items
Exceptional items
Operating loss
Unallocated items:
Finance costs
Taxation
Loss for the year 
Total assets
Total liabilities 
Net book amount 
Other information:
Depreciation and amortisation
Impairment of assets
Capital expenditure:
Tangible assets 
Intangible assets
Total
5.   Exceptional items 
Operating costs
Impairment of development costs
Group restructuring costs*
Write off of HTEC Stock (EU legislation)
Impairment of goodwill
Impairment of Antibes property sold in 2007
* Consisting mainly of redundancy cost
Finance Costs
Acceleration of amortisation of loan issue costs 
Bank risk fees
Interest on tax provision
Total
2006
£000
12,71 1
3,181
(2,779)
402
(6,236)
(5,834)
(685)
-
(6,519)
25,234
(7 ,033)
18,201
629
(5,891)
126
366
492
2006
£000
-
345
267
2,81 1
60
3,483
254
105
-
359
Currency
2006
£000
1,365
(254)
-
(254)
(2,753)
(3,007)
650
(204)
446
-
(2,753)
-
-
-
2007
£000
2,306
109
-
-
-
2,415
-
63
57
120
Head Office
2006
£000
-
-
(165)
(165)
(2,871)
(3,036)
204
(3,440)
(3,236)
-
(2,871)
-
-
-
HTEC
2006
£000
1 1,346
3,435
(2,614)
821
(612)
209
24,380
(3,389)
20,991
629
(267)
126
366
492
Retail
2006
£’000
4,490
983
Manufacturing
& repair
2006
£’000
3,947
657
Int’l Oils
2006
£000
2,908
1,795 6. Finance costs
Interest payable on bank loans and overdrafts 
Interest payable on finance leases 
Non-recurring finance costs *
* Details of non-recurring items are included in note 5. 
7 . Loss for the year attributable to equity shareholders  
This is stated after charging:
Cost of inventory recognised as expense
Depreciation/amortisation 
- Intangible
- T angible, owned
- Tangible, subject to finance lease
Impairment of development costs
Impairment of non current assets
Research and development expenditure
Auditor’s remuneration for audit services (see below)
Operating lease charges – plant and machinery
Operating lease charges – property
Inventory provision
The analysis of the auditor’s remuneration is as follows:
Fees payable to the Company’s auditors for the audit of the Company’s annual accounts
Fees payable to the Company’s auditors for other services to the Group
The audit of the Company’s subsidiaries pursuant to legislation
Total audit fees
Other fees pursuant to legislation:
Tax compliance
Tax advisory
Total non-audit fees
8. Tax on loss on ordinary activities
Continuing operations
Current tax:
Current year
Adjustment to tax change in respect of previous periods
Deferred tax (note 24):
Current year
Prior year
Total
Discontinuing operations
Current tax:
Current year
Deferred tax (note 24):
Current year
Corporation tax is calculated at 30% (2006: 30%) of the estimated assessable profit for the year.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
2006
£000
300
26
359
685
2006
£000
2,864
244
286
99
-
5,624
568
58
235
420
72
29
29
58
-
-
-
-
-
-
-
-
-
-
(327)
(327)
2007
£000
172
17
120
309
2007
£000
3,754
199
318
84
2,306
-
813
50
302
430
-
25
25
50
-
1
1
78
4
82
14
(96)
-
-
-
-
-
19
Notes to the Accounts (continued)
for the year ended 31 December 2007 8. Tax on loss on ordinary activities (continued)
The charge for the year can be reconciled to the profit per the income statement as follows:
Loss before tax
Tax at the UK corporation tax rate of 30% (2006: 30%)
Tax effect:
Expenses not deductible in determining taxable profit
Enhanced R&D tax relief
Loss on disposal of investments not deductible for tax purposes
Amortisation of goodwill not deductible for tax purposes
Capital allowances in excess of depreciation
Unrelieved tax losses carried forward
Adjustments to tax charge in respect of previous periods
Current corporation tax charge for the current period
9. Discontinued operations
The results of the discontinued operations which have been included in the consolidated income statement
for 2007 were as follows:
Revenue 
Expenses
Pre tax loss
Impairment of non current assets
Current tax charge
The loss of £254,000 arose on the operations and management of Bellword SAS, the closure of the currency division headquarters and a loss
on the early settlement of the deferred consideration on the 2005 sale of the money transfer operations.
A loss of £2,753,000 arose on the impairment of the assets and liabilities of Bellword SAS prior to it’s disposal, being the contracted proceeds
of disposal less the carrying amount of the subsidiary’s net assets and attributable goodwill.   The impairment of non-current assets of
£2,753,000 includes a write back of deferred tax of £327 ,000.
The cash effect of the operating losses was £8,000 in 2006.
The sale of Bellword SAS completed on 30 January 2007 . Cash consideration of £500,000 was received on this date and deferred
consideration of £150,000 is included as a receivable on the Group and Company balance sheets. Settlement of the deferred consideration is
expected over three years to 31 December 2009.
Bellword SAS was written down to its net realisable value as at 31 December 2006, accordingly no gain or loss on disposal arose on
completion of the sale on 30 January 2007
2006
£000
(6,519)
(1,956)
(43)
-
542
1,120
(10)
347
-
-
2006
£000
1,365
(1,619)
(254)
(2,753)
(3,007)
-
(3,007)
2007
£000
(1,882)
(565)
33
(75)
-
-
(111)
714
4
-
Notes to the Accounts (continued)
for the year ended 31 December 2007
20 21
10. Loss per share
From continuing and discontinued operations
The calculation of the basic and diluted loss per share is based on the following data:
Loss from continuing operations  
Loss for the purposes of basic and diluted earnings per share being net loss 
attributable to equity holders of the parent
Loss from discontinued operations
Loss for the purpose of basic and diluted loss per share
Total loss attributable to shareholders
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per share
Weighted average number of ordinary shares for the purposes of diluted earnings per share
Basic & diluted – continuing
Basic & diluted – discontinued 
Basic and diluted - total
11. Dividends
Dividends declared  
Ordinary – 2005 final dividend paid in July 2006
12. Goodwill
Cost at 1 January 2007
Impairment
Carrying amount at 31 December 2007
As stated in note 1 the goodwill has been tested for impairment in accordance with IAS 36 by discounting estimated future cash flows. 
The recoverable amounts of the CGUs are determined from value in use calculations. The key assumptions for the value in use calculations
are those regarding the discount rates, growth rates and expected changes to selling prices and direct costs during the period. Management
estimates discount rates using pre-tax rates that reflect current market assessments of the time value of money and the risks specific to the
CGUs. The growth rates are based on industry growth forecasts. Changes in selling prices and direct costs are based on past practices and
expectations of future changes in the market.
The Group prepares cash flow forecasts derived from the most recent financial budgets approved by management. The future cash flows are
those anticipated in the budget for 2008 with 2.5% growth assumed thereafter for the next 20 years. This rate does not exceed the average
long-term growth rate for the relevant markets.
The rate used to discount the cash flow forecast is 10%.
Management have concluded that no impairment of goodwill is required.
Notes to the Accounts (continued)
for the year ended 31 December 2007
2007
£000
(1,882)
-
(1,882)
Number
101,602
101,602
2007
pence
(1.85)
-
(1.85)
2007
£000
-
2006
£000
(3,512)
(3,007)
(6,519)
Number
64,973
64,973
2006
pence
(5.41)
(4.63)
(10.04)
2006
£000
164
2006
Total
£000
20,983
(3,733)
17 ,250
Master -
change
922
(922)
-
HTEC 
Group
£000
20,061
(2,81 1)
17 ,250
2007
T otal
£000
17 ,250
-
17 ,250
HTEC
Group
17 ,250
-
17 ,250 13. Development costs
Group
Cost
At 1 January  
Additions
At 31 December 
Amortisation
At 1 January 
Charge for the year
Impairment losses
At 31 December 
Carrying amount 
At 31 December 
Development costs are tested for impairment annually and are amortised over the period during which the benefits of the development
projects are expected to arise.
The impairment loss on development costs arose in connection with pre 2006 costs incurred on developing payment terminal hardware,
which may not recover its costs in future sales due to recent changes in technology.
14. Property, plant and equipment
Group
Y ear ended 31 December 2007
Cost or valuation
At 1 January 2007
Additions
Disposals
At 31 December 2007
Depreciation
At 1 January 2007
Charge for year
Disposals
At 31 December 2007
Net book value
At 31 December 2007
At 31 December 2006
Y ear ended 31 December 2006
Cost or valuation
At 1 January 2006
Additions 
Transfer of assets for sale
Disposals
At 31 December 2006
Depreciation
At 1 January 2006
Charge for year
Transfer of assets for sale
Disposals
At 31 December 2005
Net book value
At 31 December 2006
At 31 December 2005
2006
£000
4,018
366
4,384
1,485
244
-
1,729
2,655
T otal
£000
4,157
1,101
(41)
5,217
2,685
402
(40)
3,047
2,170
1,472
4,534
126
(485)
(18)
4,157
2,466
385
(148)
(18)
2,685
1,472
2,068
2007
£000
4,384
650
5,034
1,729
199
2,306
4,234
800
Plant
Equipment
£000
3,167
1,033
(41)
4,159
2,409
351
(40)
2,720
1,439
758
3,236
126
(177)
(18)
3,167
2,154
336
(63)
(18)
2,409
758
1,082
Leasehold
improvements
£000
990
68
-
1,058
276
51
-
327
731
714
1,188
-
(198)
-
990
312
49
(85)
-
276
714
876
Investment
property
£000
-
-
-
-
-
-
-
-
-
-
11 0
-
(1 10)
-
-
-
-
-
-
-
11 0
Notes to the Accounts (continued)
for the year ended 31 December 2007
22 23
14. Property, plant and equipment (continued)
Company – investment property
Valuation and net book value
At 1 January
Transfer to current assets
At 31 December
The net book value of plant and equipment includes £1,024,461 (2006: £314,608) in respect of assets held under finance leases. The
depreciation charged on these assets during the year was £84,426 (2006: £99,117). 
The investment property was the Antibes property, which has now been sold.
15. Investments
Company
Investments in subsidiary undertakings
At 1 January and 31 December 2007
For details of principal subsidiaries see note 33. 
16. Inventories
Group
Raw materials
Work in progress
Finished goods
There are no significant differences between the replacement costs and the fair values shown above.
17 . Trade and other receivables
Group
Trade receivables
Other debtors
Prepayments and accrued income
Deferred tax asset
Company
Amounts owed from group undertakings
Other debtors
Prepayments and accrued income
The average credit period on sales of goods is 50 days (2006: 53 days). No interest is charged on the receivables. Before accepting any new
customer, the Group uses an external credit scoring system to access the potential customer’s credit quality and defines credit limits by
customer. Of the trade receivables balance at the end of the year, £395,000 (2006: £202,000) is due from the Group’s largest customer.
Included in the Group’s trade receivable balance are debtors with a carrying value amount of £1,230,000 (2006: £722,000) which are past due
at the reporting date for which the Group has not provided as there has not been a significant change in credit quality and amounts are still
considered recoverable. The Group does not hold collateral over these balances. Ageing of past due but not impaired receivables is 30-60 days
£553,000 (2006: £504,000), 60-90 days £336,000 (2006: £71,000) and 90 days and over £341,000 (2006: £147 ,000). 
In determining the recoverability of a trade receivable the Group considers any change in the credit quality of the trade receivable from the
date the credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the customer base being large
and unrelated. Accordingly the directors believe that there is no credit provision required.
Notes to the Accounts (continued)
for the year ended 31 December 2007
2007
£000
-
-
-
2007
£000
851
875
42
1,768
2007
£000
2,254
150
290
26
2,720
624
150
51
825
2006
£000
11 0
(1 10)
-
T otal
£000
17 ,117
2006
£000
695
492
18
1,205
2006
£000
1,622
-
171
-
1,793
-
17
3
20 Notes to the Accounts (continued)
for the year ended 31 December 2007
24
18. Assets held for sale and liabilities directly associated with assets classified as held for sale
Group
Assets held for sale
Investment property held for sale
Fonds de commerce*
Trade and other receivables
Liabilities directly associated with assets classified as held for sale
Trade and other payables
* Fonds de commerce was the valuation basis applied to French bureaux de change properties which were 
owned by Bellword SAS until sold in January 2007 . 
Company
Assets held for sale
Investment property held for sale
Trade and other receivables
19. Trade and other payables Group Company
Trade creditors
Other creditors
Accruals and deferred income
Other taxation
Dividends
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period taken
for trade purchases is 60 days (2006: 60 days). 
The directors consider that the carrying amount of trade payables approximates to their fair value.                                
20. Current T ax Liabilities Group Company
Corporation tax
2007
£000
-
-
-
-
-
-
-
-
2006
£000
60
2
32
(12)
40
122
2007
£000
-
2006
£000
50
654
150
854
154
50
154
204
2006
£000
110
43
407
-
67
627
2006
£000
-
2006
£000
1,169
-
1,398
778
67
3,412
2006
£000
240
2007
£000
1,835
70
567
607
40
3,119
2007
£000
373 21. Borrowings Group Company
Unsecured – at amortised cost 
Current
Bank overdrafts
Directors’ loan
Secured – at amortised cost
Current
Bank loans (i)
Finance lease liabilities (ii)
Invoice discounting (iii)
Non-current
Bank loans (i)
Finance lease liabilities (ii)
The borrowings are repayable as follows:
On demand or within one year
In the second to fifth years inclusive
(i) The bank loans bear interest based on the Bank of Scotland base rate. They are secured by a first charge over all undertakings and assets
of the Group. The weighted average interest rate paid in 2007 was 8.1% (2006: 7%).
(ii) Secured by the assets leased. The average lease term is five years. For the year ended 31 December 2007 , the average effective
borrowing rate was 12% (2006: 12%). Interest rates are fixed at the contract date. All leases are on a fixed repayment basis and no
arrangements have been entered into for contingent rental payments.
(iii) The invoice discounting facility is secured on the trade receivables of HTEC Limited.
All borrowings are denominated in sterling.
The directors consider that the carrying amount of the bank loans and finance lease obligations approximates to their fair value.
At 31 December 2007 , the Group had available £1.29m (2006: £nil) of undrawn committed borrowing facilities in respect of which all
conditions precedent had been met
22. Other liabilities Group Company
Amounts owed to group undertaking
25
Notes to the Accounts (continued)
for the year ended 31 December 2007
2006
£000
478
154
1,409
101
998
-
31
3,171
3,140
31
3,171
2006
£000
-
2007
£000
-
-
700
-
-
318
-
1,018
700
318
1,018
2007
£000
1,158
2007
£000
-
-
700
188
-
318
572
1,778
888
890
1,778
2007
£000
-
2006
£000
-
154
1,409
-
-
-
-
1,563
1,563
-
1,563
2006
£000
1,512 26
Notes to the Accounts (continued)
for the year ended 31 December 2007
23. Financial risk management
Capital risk management
The Group manages its capital to ensure that entities within the Group will be able to continue as a going concern while maximising the
return to stakeholders through the optimisation of the debt and equity balance.
The capital structure of the Group consists of debt, which includes the borrowings disclosed in Note 21, cash and cash equivalents, and
equity attributable to shareholders of the parent, comprising issued share capital, reserves and retained earnings as disclosed on page 11.
Gearing ratio
The Group regularly reviews the capital structure.  As part of this review, it considers the cost of capital and the risks associated with each
class of capital. 
The gearing ratio at the year end is as follows:
Debt*
Cash and cash equivalents
Net debt
Equity**
Net debt to equity ratio
* Debt is defined as medium and short-term borrowings, as detailed in Note 21.
** Equity includes all capital and reserves of the Group attributable to equity holders of the parent.
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the
basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are
disclosed in Note 1 to the financial statements.
Categories of financial instruments Group Company
Financial assets:
At amortised cost:
Cash
Trade receivables
Financial liabilities:
At amortised cost:
Bank overdrafts
Trade payables
Invoice discounting
Bank loans
Directors loan
Finance lease obligations
Financial risk management objectives
The Group’s operations expose it to a variety of risks including the effect of changes in interest rates on debt, credit risk and liquidity risk. It
no longer has significant risk on foreign currency. 
Neither the Company nor the Group have material exposures in any of the areas identified above and consequently they do not use derivative
instruments to manage these exposures.
Market risk
The activities of the Company and Group primarily expose them to the financial risks of changes in interest rates (see below). 
Following the completion of the disposal of the currency divisions the company no longer has a significant exposure to risks of changes in
foreign currency exchange rates. It does transact business in euros and US dollars but at less than 5% of turnover the exchange risk is small.
2006
£000
5
1,622
478
1,169
998
1,409
154
132
2007
£000
1,778
(93)
1,685
19,531
8.6%
2007
£000
45
-
-
60
-
1,018
-
-
2007
£000
93
2,254
-
1,835
-
1,018
-
760
2006
£000
3,171
(5)
3,166
18,201
17 .3%
2006
£000
871
-
-
110
-
1,409
154
- 27
Notes to the Accounts (continued)
for the year ended 31 December 2007
23. Financial risk management (continued)
Interest rate management
The Company and the Group are exposed to interest rate risk as entities in the Group borrow funds at floating interest rates. The Group keeps
under review the appropriateness of fixing interest rates on its borrowings.
The Company and the Group’s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk
management section of this note.
Interest rate sensitivity
The sensitivity analysis below has been determined based on the exposure to interest on the financial instrument balances at the reporting
date and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period.
At the reporting date, if interest rates had been 100 basis points higher/lower and all other variables were held constant, the Group and
Company’s net loss and equity reserves for the year ended 31 December 2007 would increase/decrease by £10k (2006: £30k). This is mainly
attributable to the Group and Company’s exposure to interest rates on its variable rate borrowings. A 100 change in basis points has been
used as this has been deemed as a reasonably possible movement.
Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group’s
policy is to only deal with creditworthy counterparties, carrying out background checks before any new accounts are opened so as to mitigate
the risk of financial loss from defaults. The Group’s exposure and the credit ratings of its counterparties are monitored regularly with no
significant concentration of credit risk with a single counterparty. Credit exposure is controlled by counterparty limits that are reviewed and
approved by senior management as and when necessary, but at a minimum annually.
The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Group’s
maximum exposure to credit risk.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board of directors, which reviews and manages the Group’s short and
medium term funding and liquidity requirements on a regular basis. The Group manages liquidity risk by maintaining adequate reserves,
banking facilities and reserve borrowing facilities by regularly monitoring forecast and actual cash flows whilst attempting to match the
maturity profiles of financial assets and liabilities.
The following table details the company and the Group’s remaining contractual maturity for its non-derivative financial liabilities. The table has
been drawn up based on the undiscounted contractual maturities of the financial liabilities including interest that will accrue to those liabilities.
Group
2007
Non-interest bearing:
Trade payables
Finance lease liabilities
Variable interest rate instruments:
Bank overdrafts
Bank loans
Invoice discounting
2006
Non-interest bearing:
Trade payables
Finance lease liabilities
Variable interest rate instruments:
Bank overdrafts
Bank loans
Invoice discounting
6 months to
1 year
£’000
-
79
-
348
-
427
-
56
-
-
-
56
1 to 3 
years
£’000
-
592
-
322
-
914
-
20
-
-
-
20
1 – 6 
months
£’000
1,51 1
71
-
290
-
1,872
902
46
-
1,351
-
2,299
Less than 1
month
£’000
324
18
-
58
-
400
267
10
478
58
998
1,81 1
Weighted
average
effective rate
%
0%
12%
N/a
8.1%
N/a
0%
12%
7%
7%
7%
T otal
£’000
1,835
760
-
1,018
-
3,613
1,169
132
478
1,409
998
4,186 28
Notes to the Accounts (continued)
for the year ended 31 December 2007
23. Financial risk management (continued)
Company
2007
Non-interest bearing:
Trade payables
Variable interest rate instruments:
Bank loans
2006
Non-interest bearing:
Trade payables
Variable interest rate instruments:
Bank loans
The following table details the company and the Group’s expected maturity for its non-derivative financial assets. The table has been drawn up
based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets except where
the company or Group anticipates that the cash flow will occur in a different period.
Group
2007
Cash
Non-interest bearing:
Trade receivables
2006
Cash
Non-interest bearing
Trade receivables
Company
2007
Cash
2006
Cash
The fair value of the Group‘s financial assets and liabilities is not materially different from the carrying values in the balance sheet.
6 months to
1 year
£’000
-
348
348
-
-
-
6 months to
1 year
£’000
-
-
-
-
-
-
-
-
1 to 3 
years
£’000
-
322
322
-
-
-
1 to 3 
years
£’000
-
-
-
-
-
-
-
-
1 – 6 
months
£’000
30
290
320
55
1,351
1,406
1 – 6 
months
£’000
-
1,203
1,203
-
746
746
-
-
Less than 1
month
£’000
30
58
88
55
58
11 3
Less than 1
month
£’000
93
1,051
1,144
5
876
881
45
871
Weighted
average
effective rate
%
0%
8.1%
0%
7%
Weighted
average
effective rate
%
5%
0%
5%
0%
5%
5%
T otal
£’000
60
1,018
1,078
100
1,409
1,519
T otal
£’000
93
2,254
2,347
5
1,622
1,627
45
871 29
Notes to the Accounts (continued)
for the year ended 31 December 2007
24. Deferred tax
The movement on the net provision for deferred taxation is as follows:
Net provision at 1 January 
Credit to profit and loss account 
Net (asset)/provision at 31 December 
The resulting deferred tax asset at 31 December 2007 is disclosed in Note 17 .
At the balance sheet date, the Group has unutilised tax losses of £1,898,000 (2006:£nil) available for offset against future profits.  A deferred
tax asset has not been recognised in respect of these losses.
From 1 April 2008, the UK corporation tax rate has reduced from 30% to 28%.  Deferred tax has been recognised at the balance sheet date
at 28% as this is the rate at which it is expected to unwind in the 
25. Called up share capital
Group and Company
Authorised:
155,000,000 ordinary shares at 5p each (2006: 100,000,000)
Allotted, called up and fully paid:
114,952,055 ordinary shares of 5p each (2006: 65,622,396)
The company has one class of ordinary shares which carry no right to fixed income.
At an EGM on 20 April 2007 it was agreed to increase the company’s authorised share capital from £5,000,000 to £7 ,750,000 (100 million
shares and 155 million shares).
Allotments for cash made in 2007
Share options
3,750,000 shares were awarded to directors at 8 pence under the options scheme on 27 June 2007 .
Long term investment plan
Subject to performance conditions the Group matched 247 ,516 shares purchased by directors under the plan on 27 June 2007 .  
2007
£000
56
(82)
(26)
2007
£000
7 ,750
5,747 
2006
£000
383
(327)
56
2006
£000
5,000
3,281 
Reason
Placing
Placing
Gross
Consideration
£373,500
£3,000,000                   
No. of
Shares
6,225,000
42,857 ,143             
Date
26.01 .07
20.04.07 26. Employees and directors Group Company
Wages and salaries
Social security costs
Pension costs
The average number of people (including executive directors) 
employed during the year
HTEC 
Head Office
Discontinued
Emoluments paid to the highest paid director were as follows:
Aggregate emoluments
Company pension contribution to money purchase schemes 
There were 3 directors (2006: 4) to whom retirement benefits accrued under money purchase schemes during the year.
Further details of the director’s remuneration are included in the Directors’ Remuneration Report on page 5.
27 . Pension commitments
The Group operates a defined contribution scheme. The pension costs charged represent contributions payable by the Group to the fund amounting
to £158,085 (2006: £145,090), together with the administration charge of the fund. In addition the Group continues to contribute to personal
pension plans for certain of its employees.
28. Operating lease commitments
At 31 December 2007 the Group has lease agreements in respect of properties, vehicles, plant and equipment, for which payments extend
over a number of years:
At the balance sheet date, the Group had outstanding commitments for future minimum lease payments under non-cancellable operating
leases, which fall due as follows:
Within 1 year
Between 2 to 5 years
After 5 years
Total
29. Contingent liabilities
Duty deferment guarantee given by HTEC for HMRC of £5,000 (2006: £5,000).
30. Capital and other financial commitments
There are no contracts placed for future expenditure not provided for (2006: nil).
30
Notes to the Accounts (continued)
for the year ended 31 December 2007
2007
£000
175
14
7
196
2007
Nos.
-
3
-
3
£000
87
7
94
Plant and
Machinery
£000
11 2
44
-
156
2006
£000
120
11
6
137
2006
Nos.
-
1
-
1
£000
89
8
97
2005
Total
£000
521
1,680
3,681
5,882
2007
£000
4,281
463
158
4,902
2007
Nos.
187
3
-
190
£000
87
7
94
2007
T otal
£000
542
1,780
3,272
5,594
2006
£000
4,501
600
145
5,246
2006
Nos.
175
1
25
201
£000
89
8
97
Property
£000
409
1,636
3,681
5,726
Property
£000
409
1,636
3,272
5,317
Plant and
Machinery
£000
133
144
-
277 31
Notes to the Accounts (continued)
for the year ended 31 December 2007
31. Events after the balance sheet date
The company has formed a new subsidiary company to focus on the provision of its car wash and valeting services. The new company is called Jet
Set Wash Services Limited. Jet Set will comprise the Company's existing car wash and valeting services together with two new acquisitions
announced in February 2008.
As at 1 February 2008, Universe has acquired the stock and certain assets of AIB Limited for a maximum cash consideration of £584,000 of which
£434,000 will be paid on completion with a further performance related payment of up to £150,000 over the following three year period.
Universe has also signed heads of terms for the acquisition of WSF Services Limited, however on the basis that this acquisition is in the early
stages of completion, no further information regarding the acquisition can be provided at this time.
32. Share-based payments
Summary of share option schemes in operation during the year
The Directors’ Remuneration Report on page 5 describes the plans to which IFRS 2 applies.  In summary, the Group operated the following
plans during the period:
� Enterprise Management Incentive (“EMI”) Plan
� Discretionary Unapproved Share Option Plan
The Group recognised a total expense of £110,000 in 2007 (2006: £nil), with the corresponding credit being recorded in the equity reserve.
Equity-settled share option schemes
The exercise price of options granted under the EMI and unapproved share option plans was set at the market value at the date of grant, that
is the price which equates to the closing middle market quotation for the shares on AIM on the date of grant.  
The options are not subject to any performance conditions and vested immediately upon grant.  Where options remain unexercised after a
period of 10 years from the date of grant the options expire.  Moreover, the options will lapse in the case of termination of employment,
subject to the good leaver provisions or the Remuneration Committee exercising it’s discretion to permit options to be exercised.
The total number of shares under option is as follows:
Unapproved share options 
Number of share options Weighted average exercise price
Outstanding at beginning of period - -
Granted during the period 1,250,000 £0.08
Forfeited during the period - -
Exercised during the period - -
Outstanding at the end of the period 1,250,000 £0.08
Exercisable at the end of the period 1,250,000 £0.08
All acquisitions under the plan are equity-settled.
The fair value of grants of options over shares under the plan has been calculated as £36,667 .
EMI
Number of share options Weighted average exercise price
Outstanding at beginning of period - -
Granted during the period 2,500,000 £0.08
Forfeited during the period - -
Exercised during the period - -
Outstanding at the end of the period 2,500,000 £0.08
Exercisable at the end of the period 2,500,000 £0.08
Options granted under the plan vest immediately. All acquisitions under the plan are equity-settled.
The fair value of grants of options over shares under the plan has been calculated as £73,333. 32. Share-based payments (continued)
Fair value
In accordance with the provisions of IFRS2, payments are measured at fair value at the date of grant.  The weighted average fair value for
options granted during the period was 2.94p.
The fair value determined at the grant date is expensed on a straight line basis over the vesting period, based on the Group’s estimate of
options that will eventually vest.
Fair value was measured using a Black-Scholes option pricing model for both plans. The following inputs were used:
Weighted average share price £0.08
Weighted average exercise price £0.08
Expected volatility 60%
Weighted average expected life 2 years
Risk-free rate 5.75%
Expected dividend yield 0%
The expected life used in the model has been determined to be 2 years, based on management's best estimate for the effects of non-
transferability, exercise restrictions and behavioural considerations.  
The expected volatility was based on historical volatility data over the expected life of the options.
Expected dividends were based on the Group’s dividend payments over the 5 years prior to the grant or award date.
The risk-free interest rate incorporated into the model is based on the term structure of UK Government zero coupon bonds.
All the above companies are included in the consolidated group results.
34. Related parties
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation. Transactions
between the Company and its subsidiaries are disclosed below:
Trading transactions
During the year, the Company entered into the following transactions with its subsidiaries, which are related parties:
Amounts recharged to subsidiaries Amounts owed from/(to) subsidiaries
HTEC Limited
HTEC Limited
Remuneration of key personnel
Details of the remuneration of the directors, who are the key management personnel of the Group, is provided in aggregate for each of the
categories specified in IAS 24 Related Party Disclosures in the Directors’ remuneration report on page 5.
32
Notes to the Accounts (continued)
for the year ended 31 December 2007
33. Principal Subsidiaries
Name of undertaking
HTEC Group Ltd
*HTEC Ltd
*High Technology Electronic Clearance SL
All the above companies are included in the consolidation.
* Investments held in a subsidiary company
Percentage
Held
100% held
100% held
100% held
Issued and Fully Paid
Share Capital
Ordinary £1
Ordinary 1p
Convertible redeemable
preference £1
Ordinary 6 euro
Business
Holding company
Manufacture &
development of
payment &
information systems
Management of
information systems
Place and Date of
Incorporation
England and Wales
England and Wales
Spain
2007
£000
624
(1,158)
2006
£000
-
(1,512)
2007
£000
624
-
2006
£000
-
- Directors and Advisors
33
Directors
J R Scholes (Chairman)
P Cooper 
B L Brinkman
E M Paul
M Coster 
Secretary 
E M Paul 
Registered Office
Southampton International Park,
George Curl Way
Southampton
Hants
SO18 2RX
Website
http://www.universeplc.com
Nominated Adviser
Charles Stanley & Co. Limited
25 Luke Street
London
EC2A 4AR
Auditors
Deloitte and Touche LLP ,
Mountbatten House, 
1 Grosvenor Square, 
Southampton,
SO14 SJF
Solicitors
Fox Williams LLP , 
Ten Dominion Street, 
London, 
EC2M 2EE
Bankers
Bank of Scotland, 
144/148 High Street, 
Southampton, 
SO14 2JF
Registrars
Capita Registrars
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
HD8 0LA
Registered Number
2639726