ANNUAL REPORT AND ACCOUNTS
2006
ALGERIA
ANTIGUA
ARGENTINA
AUSTRIA
AUSTRALIA
BAHAMAS
BAHRAIN
BELGIUM
BERMUDA
BRAZIL
BRITISH VIRGIN ISLANDS
BULGARIA
CANADA
CANARY ISLANDS
CHILE
CHINA
CROATIA
CYPRUS
DENMARK
ECQUADOR
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ESTONIA
FINLAND
FRANCE
GERMANY
GHANA
GIBRALTAR
GRAND CAYMAN ISLANDS
GREECE
HONG KONG
ICELAND
INDIA
INDONESIA
IRAN
ISRAEL
ITALY
JAMAICA
JAPAN
KOREA
KUWAIT
LATVIA
LEBANON
MALAYSIA
MALTA
MEXICO
MOROCCO
NETHERLANDS
NEW CALEDONIA
NEW ZEALAND
NORWAY
OMAN
PANAMA
PAPUA NEW GUINEA
POLAND
PORTUGAL
PUERTO RICO
QATAR
RUSSIA
SINGAPORE
SLOVENIA
SOUTH AFRICA
SPAIN
SRI LANKA
ST. LUCIA
SWEDEN
SWITZERLAND
TAIWAN
TAHITI
THAILAND
TRINIDAD
TUNISIA
TURKEY
TURKS AND CAICOS ISLANDS
UNITED ARAB EMIRATES
UNITED STATES OF AMERICA
UNITED KINGDOM & IRELAND
USVI ST. THOMAS
URUGUAY
VENEZUELA
VIETNAM
ZIMBABWE
 
World leaders in electronics for the marine industry
Raymarine plc Anchorage Park, Portsmouth, Hampshire, PO3 5TD, England.
Tel: +44 (0)23 9269 3611 / Fax: +44 (0)23 9269 4642
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Joe McCarthy; Lagoon Catamarans; Malö Yachts; Nimbus Boats AB; Safehaven Marine; 
Saga Boats; Sealine International Limited; Shelley Jory; Shutterstock; 
Spirit Yachts and Onne van der Wal.
2006 ANNU AL REPOR T AND A CCOUNTS
| RADAR |  NAVIGATION AIDS | INSTRUMENTS | AUTOPILOTS | SATELLITE TV | COMMUNICATIONS | FISHFINDERS | SOFTWARE | SYSTEMS | CONTENTS
1  Financial highlights
2  Chairman’s statement
5 Chief executive ofﬁ cer’s review
8 Financial review
14 Board of directors 
16 Corporate governance statement
20  Directors’ remuneration report
24 Company history
26 Directors’ report
28 Statement of directors’ responsibilities
29 Independent auditors’ report to the members of Raymarine plc 
30 Consolidated income statement
31 Consolidated statement of recognised income and expense
32 Consolidated balance sheet
33 Consolidated cash ﬂ ow statement
34 Notes to the ﬁ nancial statements
58 Independent auditors’ report to the members of Raymarine plc 
59 Company income statement
59 Company statement of recognised income and expense
60 Company balance sheet
61 Company cash ﬂ ow statement
62 Notes to the Company ﬁ nancial statements
66 Five year summary
67 Shareholder information and professional advisers Financial highlights
1
  Adjusted measures present the results after adding back restructuring costs of £7.8m (2005: £10.9m), ﬂ otation and other non-recurring costs of £nil (2005: £0.3m credit) and amortisation of other intangible ﬁ xed assets of £0.7m 
(2005: £0.7m).
2
  EBITA (earnings before interest, tax and amortisation) comprises operating proﬁ t before amortisation of other intangible ﬁ xed assets of £0.7m (2005: £0.7m).
3
  EBITDA (earnings before interest, tax, depreciation and amortisation) comprises operating proﬁ t before amortisation of other intangible ﬁ xed assets of £0.7m (2005: £0.7m) and depreciation of property, plant and equipment of 
£3.1m (2005: £3.2m).
4
  See Note 12.
Actual 
2006
Adjusted
1
 
2006
Actual 
2005
Adjusted
1
 
2005
Revenue (£m) 136.5 136.5 121.9 121.9
Gross proﬁ t (£m) 56.2 56.2 45.8 45.8
Gross margin 41.2% 41.2% 37.6% 37.6%
EBITA (£m)
2
16.8 24.6 11.8 22.4
EBITA margin 12.3% 18.0% 9.7% 18.4%
EBITDA (£m)
3
19.9 27.7 15.0 25.6
Proﬁ t before tax 
(£m)
14.1 22.6 8.1 19.4
Dividend (p) 8.75p 8.75p 7.0p 7.0p
Earnings per share
4
Basic (p) 12.5p 20.0p 10.1p 17.1p
Diluted (p) 12.2p 19.6p 10.0p 16.9p
Raymarine plc Annual Report 2006 1 Chairman ʼs statement
Raymarine achieved good progress in 2006. In 
our second year as a listed Group we have seen 
continued growth in revenues and proﬁ ts. 
The robust demand in the early part of the 
year, which led to a period of short supply of 
ﬁ nished goods, was professionally handled and 
resolved by the executive team and by year 
end most major markets had exceeded their 
revenue targets. The adjusted EBITA* rose by 
£2.2m (2006: £24.6m; 2005: £22.4m). The 
ﬁ nal dividend of 5.95 pence per share, when 
combined with the interim dividend of 2.8 pence 
per share, demonstrates 25% growth over 2005. 
The dividend is covered 2.3 times by adjusted 
basic earnings.*
We have increased the pace of research and 
development. The resulting introduction of new, 
enhanced and innovative products continues 
to reinforce our reputation as the leading 
provider of high quality leisure marine electronics 
worldwide. 
A major milestone with the outsourcing project 
was achieved with the on-time completion of 
the transfer of all the production cells from 
Portsmouth to the Flextronics factory in Hungary. 
This ﬁ rst phase was completed with exceptional 
professionalism and the whole team is to be 
complimented on this signiﬁ cant achievement. 
The next phase of ensuring we obtain the full 
ﬁ nancial beneﬁ ts of worldwide sourcing with 
our partner is now being approached with equal 
vigour by the team.
A review of the Asia-Paciﬁ c markets identiﬁ ed a 
growing number of opportunities for the Group 
in Asia and Australia. A senior executive has been 
appointed to manage the region and a wholly 
owned subsidiary has been established to provide 
the cornerstone of our activities in the region.
The end of the year saw Kieran Breheny, 
Engineering director, retire from the Board after 
12 years with the Group. I and the Board would 
like to thank Kieran for his contribution to the 
Group in those years. We are very pleased to 
have been able to appoint Gordon Pope to 
the position of Engineering director. Gordon 
brings a wealth of electronic engineering and 
management skills to the Group.
I would also like to thank the management 
and all our employees for their contribution to 
another successful year. Their commitment has 
been outstanding and we would further extend 
our thanks and very best wishes to the personnel 
affected by the outsourcing project.
Our past investments have enabled us to build a 
very strong position in the world’s leisure marine 
markets. We continue to invest and expand on 
those foundations and the Board expects the 
Group to continue to make good progress in 
2007 and reach the targets set.
Peter Ward
Chairman
26 February 2007
* Calculations of these measures is explained on page 1.
Raymarine plc Annual Report 2006 2 Raymarine plc Annual Report 2006 3 Raymarine plc Annual Report 2006 4 Chief executive ofﬁ cer ʼs review
Introduction
The year to 31 December 2006 was an extremely 
active and successful one during which our sales 
grew by 12% (from £121.9m to £136.5m) whilst 
launching many new products and transferring 
all manufacturing from our Portsmouth site to 
an outsourced facility in Hungary. In the ﬁ rst half 
of the year we experienced restricted supply for 
several months, despite which, for the full year, 
adjusted EBITA* rose by 10% (from £22.4m to 
£24.6m).
Adjusted EBITDA* grew by 8% to £27.7m and 
we are pleased to announce a 19% increase in 
the ﬁ nal dividend to 5.95 pence per share. 
The market
The market for leisure marine electronics has 
demonstrated similar tends throughout the 
Company’s 30+ year history. Boats are increasing 
in size and sophistication. Boat owners, skippers 
and crew are increasingly expecting a wider 
range of electronics for safety, navigation, vessel 
control, communication and entertainment. 
2006 has been no exception in demonstrating 
these trends, although the market for mid to 
large boats, where Raymarine is strongest, 
fared much better than the market for smaller 
boats. Recent reports conﬁ rm that demand over 
the past year for new, small leisure and ﬁ shing 
boats (those less than 25 feet in length), where 
Raymarine has its lowest brand share, have 
been hardest hit. Larger and luxury boats, our 
main markets, continued to beneﬁ t from healthy 
demand. 
We beneﬁ t from our very strong relationships with 
builders of new boats across the world, however 
the larger part of our business is centred on 
supplying a comprehensive range of electronics for 
the refurbishment and replacement market.
Trading
Demand and sell-through was robust and 
consistent throughout our world markets, 
although developing markets enjoyed greater 
growth. 
In the ﬁ rst half of the year we experienced 
product supply difﬁ culties. These were caused 
by a mismatch between anticipated and actual 
demand, late introduction of new products 
and a UK component supplier ceasing to trade. 
These had been resolved by the time we entered 
our second half. The US and UK suffered most 
from these disruptions though the US business 
recovered well; revenues by the year end were 
up 8% in dollar terms on the previous year. The 
UK domestic market, now less than 10% of our 
business, however was unable to recoup the 
shortfall and year on year revenues fell by 4%.
Our fastest growing markets were the Middle 
East, up 55% year on year, and Eastern Europe 
where sales grew by 47%.
Business in Northern Europe experienced 
healthy demand, with Scandinavia in particular 
contributing to a 35% increase in sales. Southern 
European countries showed an increase of 22%.
Asia-Paciﬁ c trade was disappointing given 
the opportunities in this market. A modest 
9% increase in sales does not reﬂ ect its true 
potential. We have taken steps to address 
this including taking direct control over our 
distribution in this region.
Product development
Raymarine’s unique skills and intellectual 
property, built over many years, allow for the 
multi-level networking of devices to give users 
conﬁ dence, safety, simplicity and functionality at 
sea. Whenever we develop products we consider 
this encompassing proposition, particularly for 
mid to larger boats that need a complete suite of 
high technology electronics.
For smaller boats we utilise the same 
technologies but in more compact stand alone 
units. Our development of high deﬁ nition ﬁ sh 
ﬁ nding technology is an example of this, as is our 
expertise in bright sunlight viewable displays.
New products are the lifeblood of the business 
and they received much attention from within 
the Company and a high level of interest 
amongst customers world-wide. Boat shows are 
a testament to consumer’s insatiable appetite 
for new, well designed and robust products. 
Established products continue to sell well, 
however, with life cycles which are much longer 
than might be expected in other industries.
During the last year we successfully launched 
14 new products. Most of them were launched 
within the ﬁ rst half, although a little later than 
planned. By the end of 2006 they were all in full 
distribution and been well received. 
These new products covered an updated 
instrument range which offers functionality from 
stand-alone display units to fully integrated 
systems providing information on speed, depth, 
wind, heading, temperature and compass plus 
autopilot control heads that offer large displays 
with heading and rudder angle indicators, pilot 
controls and Autotack.
With safety at sea paramount, Raymarine launched 
its wireless man overboard system, LifeTag. LifeTag 
is small and can be worn or pocketed. If a crew 
member falls overboard or strays outside the 
range (typically 30 feet), contact with base station 
is broken and an alarm will sound. In addition 
LifeTag can be activated on Raymarine’s C and E 
series displays giving an emergency visible symbol 
and a bearing for passage to that point. 
* Calculations of these measures is explained on page 1.
Raymarine plc Annual Report 2006 5 Malcolm Miller
Chief executive ofﬁ cer
26 February 2007
The new A65 was well received, particularly in 
Scandinavia where it made a good choice for 
owners of smaller boats with open cockpits 
and centre consoles. It is a dual function 6.5” 
sunlight viewable display combining simplicity 
with advanced chart plotting and high deﬁ nition 
ﬁ sh ﬁ nding technology.
Enhancements to E series were introduced 
giving the ability to input weather data and 
3rd party automatic identiﬁ cation systems. This, 
together with other upgrades, ensured that this 
product range again led the multifunction sector.
New radar scanners were launched in newly 
designed radome housings. These give improved 
target separation and clarity at short ranges, 
plus increased target visibility at long ranges.
Many new products are planned for introduction 
in 2007 and beyond.
Supply chain 
In July 2005 we took the decision to move our 
entire Portsmouth manufacturing facility to an 
outsourced partner with a large manufacturing 
plant in Hungary. 
We have commented regularly on the two 
phases of the project. The ﬁ rst phase was 
the intensely detailed one of the transfer 
of printed circuit board insertion, assembly 
process, production cells, test equipment and 
training from one site to another. Considering 
the differing languages, practices and 
processes together with a year of new product 
introduction and record volumes, this has been 
accomplished very successfully on timetable and 
on budget. 
We are delighted with the contribution this 
has made to increased output, quality and 
production yields.
The second phase of the project entails moving 
from Raymarine’s suppliers of raw materials 
and components to Flextronics’ suppliers, and is 
on schedule but yet to be completed. As I said 
in my last report, whilst we remain conﬁ dent, 
there are risks. These risks are associated with 
the selection, valuation, approval and usage of 
a great number of parts. It is anticipated that 
this phase will be ﬁ nished during the ﬁ rst half 
of 2007. 
People
People are our most highly valued resource 
and for the Raymarine family where some of 
our colleagues have been with us for more 
than 25 years, 2006 has been a challenging 
year. We have sadly had to say farewell to over 
200 people, mainly through the redundancy 
programme associated with outsourcing 
production.
The relatively smooth transfer of production to 
Hungary is due to the tireless approach of many 
employees, and we are enormously grateful 
for their contribution even though some were 
aware they may lose their jobs. This, together 
with our partner’s approach to diligence and 
commitment, created an environment where risk 
assessment, teamwork and focus contributed to 
a very successful outcome. 
The Group is likely to undergo further change as 
we assess where we need to recruit and retrain 
people to ensure that we remain ahead in this 
industry through continual improvement to 
product, process and performance.
Outlook
We expect trading in the current year to be in 
line with expectations.
Demand has continued to be robust in the 
UK and the Rest of the World, following a 
stronger than expected close to 2006, although 
a resultant shortage of certain products has 
meant that we have so far been unable to 
fully capitalise on this opportunity. The US also 
ﬁ nished last year better than anticipated but 
has seen a slow down in the market in recent 
weeks. We do however expect the US to meet 
our overall targets for 2007.
Raymarine has a large number of new product 
launches scheduled for 2007 in areas of new 
instrumentation, systems and displays – most 
of these are targeted at the larger luxury end of 
the boating market, although some are aimed at 
smaller boats.
As a result we look forward to the future with 
conﬁ dence.
Raymarine plc Annual Report 2006 6 Raymarine plc Annual Report 2006 7 Year ended 31 December
2006
£’000
2005
£’000
Revenue 136,490 121,851
Gross proﬁ t 56,232 45,761
Gross margin 41.2% 37.6%
Adjusted EBITA* before foreign exchange 24,175 19,560
Adjusted EBITA* margin before foreign exchange 17.7% 16.1%
Foreign exchange gains 469 2,830
Restructuring costs (Note 5b) (7,823) (10,909)
Finance costs (net of ﬁ nance income) (2,005) (3,015)
Proﬁ t before taxation 14,091 8,062
Adjusted proﬁ t before taxation
1
22,639 19,375
Adjusted EPS (basic)* (Note 12) 20.0p 17.1p
Net debt 43,632 38,393
Financial review
2006 has been a busy and successful year 
for Raymarine. Earnings per share increased 
by 17% to 20.0p (adjusted basic EPS*). The 
success of the Group is recognised by the Board 
in proposing a full year dividend of 8.75p an 
increase of 25%.
Revenue was £136.5m (2005: £121.9m) an 
increase of 12%. Demand for the Group’s 
products continued to be strong and had the 
Group not suffered from product shortage during 
the ﬁ rst half of the year, an even higher level of 
sales would have been achieved. Sales in the 
UK decreased by 4% and in the US increased 
by 8% in Dollar terms. Both these markets were 
particularly hit by the shortages in product 
supply. In the Rest of the World sales increased 
by 18%, which is extremely encouraging. Sales at 
the end of 2006 ﬁ nished on a particularly strong 
note.
Adjusted EBITA* after foreign exchange was 
£24.6m (2005: £22.4m) an increase of 10.1%. 
The Group had previously enjoyed signiﬁ cant 
foreign exchange gains from a series of 
long-term forward exchange contracts, the 
remainder of which expired in the ﬁ rst quarter of 
2006. This distorts the comparison in the growth 
in EBITA between the years. Before this foreign 
exchange, adjusted EBITA* grew by 23.5% 
to £24.2m (2005: £19.6m). Gross margins 
increased to 41.2% from 37.6%. 
A key feature of 2006 has been the transfer 
of manufacturing to Flextronics in Hungary 
and the closure of Raymarine’s manufacturing 
facilities in Portsmouth. This has been the focus 
of much management time and attention during 
the year as well as considerable investment 
through restructuring costs. The transfer was 
successfully completed on schedule before the 
end of the year. Restructuring costs were £7.8m 
(2005: £10.9m) bringing the cumulative total 
to £18.7m. The Board continue to believe that 
the total costs to complete this project will 
amount to £21.0m. It should be noted that the 
completion of the transfer of manufacturing does 
not signal the end of the project. The move away 
from existing suppliers to new low cost sources 
of supply, which constitutes the most proﬁ table 
but also the most complex phase of outsourcing, 
is scheduled to complete during the ﬁ rst half of 
2007. 
Adjusted proﬁ t before tax* was £22.6m (2005: 
£19.4m) an increase of 16.5%. Adjusted basic 
earnings per share* were 20.0p (2005: 17.1p), 
an increase of 17%, with an underlying tax rate 
of 26.8% (2005: 26.8%). The statutory operating 
proﬁ t is £16.1m (2005: £11.1m).
At 31 December 2006 net debt stood at £43.6m 
(2005: £38.4m) notwithstanding, amongst other 
items, the cash costs of the outsourcing project 
of £10.0m and the increase in dividends paid out 
of £4.8m. 
Gross margins
Gross margins increased to 41.2% from 
37.6%. The principal gains have come from 
an improvement in the mix of higher margin 
products, improved warranty costs, offset by 
higher freight costs.
Set out below is a comparison of the results for 
the year with those of the prior year:
1
 Before restructuring costs and amortisation 
* Calculations of these measures is explained on page 1. 
Raymarine plc Annual Report 2006 8 The E series multifunction range in particular 
enjoyed continued success throughout the year. 
Together with the E series, Ray 240 VHF with 
Digital Selective Calling and C series were the 
signiﬁ cant contributors to the improvement in 
product mix. This is encouraging.
Product warranty is a signiﬁ cant cost for 
Raymarine as the Group provides warranties 
extending up to three years and featuring repair 
or replacement on board. Reducing the incidence 
of warranty claims has been an important focus 
of activity and it is pleasing to report that the 
actions taken, including product improvement 
and changes to some of the warranty terms, 
have resulted in both a reduced level of warranty 
claim during the year and requirement to provide 
for potentially outstanding claims to come. It is 
hoped that warranty costs can be further reduced 
in the near future.
As reported in the ﬁ rst half, the Group suffered 
from a shortage of product during the year and 
lost a signiﬁ cant amount of sales as a result. 
This situation was rectiﬁ ed during the year. 
However, a knock on effect was a signiﬁ cant 
increase in freight costs as a result of greater 
use of airfreight both to expedite supplies of 
components into production and to speed 
despatch of ﬁ nished items to waiting customers. 
A focus for 2007 is to reduce the level of this 
cost.
Research and development
Investment in developing innovative, high quality 
products is central to the Group’s growth. 
Raymarine’s strategy of strong investment in 
product development is the cause of the high rate 
of sales growth achieved by the Group and this 
type of expenditure has generated a high return 
on investment. The Board believes that Raymarine 
is a leader in its markets in the amount invested 
in research and development. The Group expects 
to increase its investment in R&D over time in 
line with sales. 2006 saw a £4.2m increase in 
the cash expenditure invested in development 
costs, bringing the total cash spend on R&D up 
to £12.6m (2005: £8.4m) and in consequence 
under IAS 38 the amount capitalised has risen 
by £4.3m to £7.9m or 63% (2005: 43%) of 
the total amount spent on R&D. Amortisation 
and impairment of R&D, the charge for which is 
included in EBITA, was £3.5m (2005: £2.6m). 
The net charge to the income statement was 
£8.3m (2005: £7.4m). At 31 December 2006 the 
amount of development expenditure capitalised 
under IAS 38 and held in the balance sheet was 
£11.7m (2005: £7.4m), which amounts to 40% 
of the R&D spend incurred over the last three 
years of £29.2m. Capitalised R&D is written off 
over three years.
Raymarine plc Annual Report 2006 9 Restructuring costs
The outsourcing costs of £7.8m (2005: £10.9m) 
cover consulting and other staff related costs, 
property costs, and the costs of transferring 
stocks, equipment, and operating know-how, 
offset by the proceeds of ﬁ xed asset disposals. 
Further details can be found in Note 5b to 
the accounts. The Board expects that a high 
proportion of these items will be tax deductible 
costs. Cash expenditure on outsourcing was 
£10.0m (2005: £4.5m).
Interest
Net interest payable was £2.4m (2005: £2.4m). 
At the half year the interest charge had been 
favourable to the prior year reﬂ ecting a lower 
average level of net debt. However, a larger 
proportion of the restructuring expenditure and 
the R&D spend was made in the second half of 
the year in addition to the growth in ﬁ nished 
goods inventories which increased in response 
to the supply problems encountered in the ﬁ rst 
half. The interest charge was covered 11.5 times 
(2005: 10.7 times) by adjusted EBITDA*, 10.3 
times (2005: 9.3 times) by adjusted EBITA*, 
and 7.0 times (2005: 4.9 times) by unadjusted 
EBITA. These ratios show the liquidity of the 
Group and its strong underlying cash position. 
Current borrowing costs are based on the 
total level of net debt on a ratchet which runs 
between 50 and 115 basis points over LIBOR for 
the currency in which the borrowings are drawn. 
Net interest consists of interest costs of £2.5m 
(2005: £2.6m) less interest income of £0.1m 
(2005: £0.2m). Full details are provided in Note 
9 to the accounts. All the Group’s borrowings 
are currently at variable rates of interest.
Taxation
The charge for taxation was £3.7m (2005: 
£0.3m credit) giving an adjusted effective tax 
rate of 26.8% (2005: 26.8% adjusted). The 
small credit in 2005 reﬂ ected the beneﬁ t of 
two exceptional tax credits, both arising as a 
result of the ﬂ otation of the Group, which at the 
time were removed when presenting adjusted 
earnings. This credit would have been larger in 
2005 had a greater proportion of the deferred 
tax assets of Raymarine’s US subsidiary been 
recognised. It is considered appropriate to make 
an adjustment for this now and a deferred tax 
asset of £0.5m has been recognised in the 
accounts. 
Dividends
Subject to shareholder approval at the Annual 
General Meeting a ﬁ nal dividend of 5.95 pence 
per share (2005: 5.0 pence) will be paid on 
25 May 2007 to shareholders on the register 
of members at the close of business on 4 May 
2007. In accordance with the International 
Financial Reporting Standards adopted by the 
Group last year the cost of this ﬁ nal dividend 
of £4.9m (2005: £4.1m) will not be recognised 
*  Calculation of these measures is explained on page 1.
in the accounts until it is approved by the 
members. Combined with the interim dividend 
already paid of 2.8 pence (2005: 2.0 pence), 
this amounts to a dividend for the full year of 
8.75 pence (2005: 7.0 pence) an increase of 
25% over the prior year and is intended to 
reﬂ ect both the increase in earnings and the 
Group’s cash position. The dividend is covered 
2.3 times by adjusted basic earnings* (Note 12).
Earnings per share
Basic earnings per share (EPS) were 12.5 
pence (2005: 10.1 pence), an increase of 
23.8%. Both these ratios are distorted by the 
heavy expenditure on restructuring costs in 
both years and the exceptional tax credit in 
2005. Adjusted basic EPS* increased by 17% 
to 20.0 pence (2005: 17.1 pence). 
Adjusted fully diluted EPS* was 19.6 pence 
(2005: 16.9 pence), an increase of 16%. 
The small dilution relates largely to the effect 
of the Long-Term Incentive Plan (LTIP) assuming 
the vesting of these awards to the Group’s 
senior managers who are invited to participate 
in this plan.
Cash ﬂ ow and net debt
The Group has a strong balance sheet backed 
by a committed 5 year multi-currency borrowing 
facility of $135m that commenced in December 
2004. In addition the Group has a £9m 
overdraft facility. The Group’s business generates 
strong operating proﬁ ts that are converted into 
cash. Adjusted EBITDA* before restructuring 
costs was £27.7m (2005: £25.6m), an increase 
of 8.2%. Adjusted EBITDA* is 20.3% of revenue 
(2005: 21.0%).
Operating cash ﬂ ows before movements in 
working capital were £20.7m (2005: £26.1m). 
The decrease of £5.4m is primarily a result 
of the non-recurring expenses relating to the 
outsourcing project incurred or committed in 
2005, but not paid for until 2006. Additionally, 
the beneﬁ t to cash ﬂ ow in 2006 from long-term 
foreign exchange contracts, which have now all 
been realised, was only £0.4m (2005: £2.8m). 
 
Net debt rose by £5.2m to £43.6m (2005: 
£38.4m). At this level the Group had £25.5m 
of committed but unutilised borrowing facilities 
available to it under its bank covenants. In 
overview the principal cash outﬂ ows calling 
upon adjusted EBITDA* and leading to the 
increase in net debt were dividend payments 
£6.5m (2005: £1.7m), the increase in product 
development investment of £4.2m, the increase 
in receivables of £6.0m, restructuring payments 
made for the outsourcing project £10.0m (2005: 
£4.5m), and UK corporation tax payments of 
£3.4m (2005: refund of £0.2m). The outsourcing 
project is scheduled to complete during the ﬁ rst 
half of 2007 following which it is expected that 
net debt will reduce rapidly from accumulating 
cash ﬂ ow.
Net debt consists of gross debt of £45.7m 
(2005: £40.4m) detailed in Notes 17 and 20 
less cash balances of £2.1m (2005: £2.0m). 
Operating cash ﬂ ow and notes to the cash ﬂ ow 
statement are detailed in Note 29.
Raymarine plc Annual Report 2006 10 Raymarine plc Annual Report 2006 11 Raymarine plc Annual Report 2006 12 Capital expenditure
Capital expenditure was £4.4m (2005: £4.1m). 
This was mainly incurred on ﬁ xtures, ﬁ ttings, 
tools and equipment. The Group’s business is not 
a capital intensive one outside of the research 
and development of new products, which is the 
Group’s dominant channel of investment.
Financial instruments and risk 
management
The Group does not enter into speculative 
ﬁ nancial transactions and uses ﬁ nancial 
instruments for certain risk management 
purposes only. 
The Group’s transactions are entered into in 
several different currencies. Approximately half 
of Raymarine’s sales are received in US Dollars, 
which the Group attempts to hedge naturally 
by procuring supplies in US Dollars. These are 
converted into Pounds Sterling, Euros, and 
Japanese Yen regularly throughout the year. 
The outsourcing arrangement with Flextronics 
reduced considerably the Group’s net exposure 
to the US Dollar as this supply contract is 
denominated in US Dollars. 
It is Raymarine’s policy to keep under review the 
requirement for covering any remaining currency 
exposures through forward exchange contracts. 
The Group had no such contracts in place at 
31 December 2006. It also aims to match 
the currency of its borrowings with the main 
transaction currencies.
The Group keeps under review the 
appropriateness of ﬁ xing interest rates on its 
borrowings, although at 31 December 2006 all 
debt was at ﬂ oating rates, in light of the very 
high degree of interest cover from cash ﬂ ow and 
earnings.
Foreign exchange
In 2001 the Group took out a series of long 
dated foreign exchange contracts selling the US 
Dollar forward at advantageous rates in order 
to cover the Group’s exposure to this currency. 
The last of these matured during the ﬁ rst 
quarter of 2006 contributing £0.4m to proﬁ t. 
The contribution in 2005 was £2.8m due to the 
greater quantum of foreign exchange contracts 
maturing.
The results of the business in the United States 
have been translated at an average rate of 
£1:$1.81 (2005: £1:$1.84). The period end rate 
was £1:$1.96 (2005: £1:$1.73).
Pensions
The Group does not operate any deﬁ ned beneﬁ t 
pension plans nor does it have any liabilities 
under any past plans of this type. Employees 
of the Group are able to participate in a Group 
pension through a deﬁ ned contribution plan.
Share capital and shareholders’ funds
The Group had 82.8m shares in issue at 
31 December 2006 (2005: 82.8m). The ‘lock-up’ 
arrangements put in place at the time of the 
ﬂ otation over shares owned by existing and 
former directors of the Group ceased on 
2 March 2006.
At 31 December 2006 shareholders’ funds 
totalled £22.6m (2005: £18.0m) of which 
£17.3m (2005: £13.6m) are distributable 
reserves.
Raymarine shares, which were successfully listed 
on the London Stock Exchange on 6 December 
2004 at 152p, were 472p on 31 December 
2006 (2005: 242p).
Tony Osbaldiston
Finance Director
27 February 2007
Tony Osbaldiston
Finance director
26 February 2007
Raymarine plc Annual Report 2006 13 The Board of directors
Malcolm has over 25 years 
experience in the consumer 
electronics industry. He was 
Chief executive ofﬁ cer of 
Pace Micro Technology plc 
from 1997 to 2002, and was 
formerly Chief executive ofﬁ cer 
of SEGA Europe from 1994 to 
1997. His earlier career was 
with Amstrad plc, culminating 
in appointment as Managing 
director. Malcolm joined 
Raymarine as Chief executive 
ofﬁ cer in January 2003. He 
is currently a Non-executive 
director of Avis Europe plc. 
Malcolm has a BA in business 
studies from the University of 
Westminster.
Malcolm Miller
Chief executive ofﬁ cer
(51 years)
Terry has spent over 20 years 
in the consumer electronics 
industry. He started his career 
with The Black & Decker 
Corporation in 1984, originally 
in sales and marketing, 
then moving into general 
management roles. In 1997 
he joined Vermont American, 
a joint venture of Bosch and 
Emerson, as Sr. Vice President 
and Corporate Ofﬁ cer. In 
2000, Terry joined the Polaroid 
Corporation as Vice President 
and General Manager, as well 
as President and Chairman 
of the Canadian Company. 
In December 2002 Terry was 
appointed President of the 
America’s (Raymarine Inc.) 
and Head of global product 
management for Raymarine 
worldwide. He has quickly 
assumed an industry leadership 
role as a board member of the 
National Marine Manufacturers 
Association (NMMA), as well 
as the new national Grow 
Boating industry initiative. 
Terry has a BA and an MBA 
in business and marketing 
respectively.
Terry Carlson
President of the Americas & Head 
of global product management
(44 years)
Tony is a chartered accountant 
who has followed a career in 
ﬁ nancial management with 
publicly quoted companies. 
He has been Finance director 
of both Max Factor UK Group 
(cosmetics) where he was 
employed between 1985 
and 1989 and Volvo Car UK 
Ltd where he was employed 
between 1989 and 1994. He 
then joined FirstGroup plc 
in 1995, as Finance director 
and in 1999 was promoted 
to Deputy CEO and then CEO 
of FirstGroup America. He 
joined Raymarine as Finance 
director in August 2004. He 
is currently a Non-executive 
director and Chairman of 
the Audit Committee of BSS 
Group plc. Tony has an MSc 
in management sciences from 
Durham University.
Tony Osbaldiston
Finance director
(54 years)
Raymarine plc Annual Report 2006 14 Peter has over 35 years 
experience working within 
companies which design, 
manufacture and market 
products, the majority of which 
have been at board level. He 
has held senior management 
roles at Peugeot SA, where he 
was subsequently Managing 
director of Motorquip Limited. 
He was Chairman and Chief 
executive ofﬁ cer for Rolls-
Royce and Bentley Motor 
Cars and Managing director 
operations for Vickers plc. Peter 
was also Chairman and Chief 
executive ofﬁ cer of Cunard 
Line. He currently holds Non-
executive positions at the law 
ﬁ rm, DLA Piper Rudnick Gray 
Cary International LLP; Harley 
Davidson Inc and is Chairman 
of TG21plc.
Peter Ward
Chairman
(61 years)
Jim has 30 years experience 
developing, manufacturing 
and marketing high technology 
products internationally. At 
Raychem Corporation he held a 
number of senior management 
positions in manufacturing 
and business development, 
serving high growth electronics 
and transportation markets 
and was General Manager of 
the European Wire and Cable 
business. Since 1993 he has 
been an Executive director 
of Spectris plc, responsible 
for a number of the Group’s 
precision instrumentation and 
controls companies. He holds a 
BSc (Hons) in metallurgy from 
the University of Leeds. 
Jim Webster
Non-executive director
(56 years)
Nicholas joined Touche Ross & 
Co. in 1983, where he qualiﬁ ed 
as a chartered accountant in 
1986. Following a further three 
years at Touche Ross & Co., 
he joined HgCapital, where 
he is now a Partner, to pursue 
a career in private equity 
investment.
Nicholas Turner
Non-executive director
(45 years)
Paul joined Deloitte Haskin 
& Sells in 1978, where he 
qualiﬁ ed as a chartered 
accountant in 1981. Following 
a further ﬁ ve years at Deloitte 
Haskin & Sells he moved 
into industry with a variety 
of roles in ﬁ nance and 
business development. Paul 
is Corporate development 
director at Bespak plc, a 
medical devices manufacturer. 
From 1991 to 2004 he was 
Business development director 
of Spectris plc. Paul was also 
a Non-executive director 
of London Bridge Software 
Holdings plc from 1999 to 
2004. He has a BSc in business 
economics.
Paul Boughton
Non-executive director
(51 years)
Raymarine plc Annual Report 2006 15 Corporate governance statement
The following section explains how the Company 
applies the principles and supporting principles 
of the Combined Code on Corporate Governance 
issued in July 2003 appended to the Listing Rules 
(the “Combined Code”).
Compliance with the Combined Code
The Board is responsible for the Group’s system 
of corporate governance and is ultimately 
accountable for the Group’s activities, strategy and 
ﬁ nancial performance. During the 12 months to 
31 December 2006 Raymarine was outside the 
FTSE 350, and except as noted below, met the 
requirements of the Combined Code as applied to 
smaller companies.
Between September 2005 and January 2006 when 
Jim Webster was appointed as a Non-executive 
director , the Board and the various committees 
did not include two independent Non-executive 
directors, as both the Chairman and Nicholas 
Turner were not considered to be ‘independent’ 
under the rules of the Combined Code.
Prior to the appointment of Nicholas Turner as 
senior independent Non-executive director in 
November 2006, the post had been vacant after 
Peter Ward resigned, following his appointment 
as Chairman on 21 September 2005. Please see 
‘Independence of Non-executives’ below for 
further details.
The Board process for monitoring and evaluating 
its own performance, that of its committees and 
individual directors was introduced in December 
2006. It includes setting speciﬁ c objectives for 
each committee and individual directors and 
the monitoring of how these objectives are met. 
A formal consultation process with each Board 
member has been initiated with the objective 
of assessing and evaluating the commitment 
and contribution of each member to each of 
the committees and to the Board. The data 
collection is currently ongoing and its evaluation 
is expected to be completed in the ﬁ rst quarter 
of 2007.
The Chairman is a member of the Remuneration 
Committee (which is now permitted by the 
June 2006 version of the Code). The Board 
considers that the Chairman should participate 
in decisions concerning remuneration of the 
Executive directors and that his membership 
of the Committee helps to ensure that the 
Company’s remuneration policy is aligned with 
its strategic objectives.
Independence of Non-executives
The Chairman satisﬁ ed the independence criteria 
of the Combined Code on his appointment and 
Paul Boughton and Jim Webster are considered 
to be independent according to the principles of 
the Combined Code. 
Raymarine plc Annual Report 2006 16 Scheduled 
full Board mettings 
attended
Remuneration 
Committee mettings 
attended
Audit
Committee mettings 
attended
Nomination 
Committee mettings 
attended
Number of meetings in the year 10 4 2 3
Peter Ward 10 4 2 3
Malcolm Miller 10 N/A N/A N/A
Kieran Breheny (a) 10 N/A N/A N/A
Terry Carlson 9 N/A N/A N/A
Tony Osbaldiston 10 N/A N/A N/A
Paul Boughton 8 2 2 3
Nicholas Turner 10 2 2 3
Jim Webster (b) 8 4 2 2
(a) Resigned 22 November 2006
(b) Appointed 16 January 2006
Each board committee is composed of all the Non-executive directors.
The board scheduled ten meetings during the year ended 31 December 2006 and additional six ad-hoc meetings were convened as necessary to deal with 
urgent matters as they arose. 
Nicholas Turner has been a senior employee 
of a major shareholder for the last three years 
and whilst the Company believes him to be 
independent, he is not so considered under 
the rules of the Combined Code. Consequently, 
before he was appointed to the position of 
senior independent Non-executive director, the 
Board carried out a consultation process with 
all major shareholders, with the objective of 
obtaining consensus for his appointment. These 
investors supported this nomination.
Board and Board committees
Board structure
The Board currently comprises a Non-executive 
Chairman, three Non-executive directors and 
three Executive directors. Following the disposal 
in March 2006 by HgCapital of their investment 
in Raymarine plc, Nicholas Turner was asked to 
remain on the Board as a Non-executive director. 
On 22 November 2006 Kieran Breheny, an 
Executive director, resigned from the Board.
The posts of Chairman and Chief executive 
ofﬁ cer are held by different directors. Clear 
divisions of accountability and responsibility 
exist and operate effectively for these positions. 
Peter Ward is responsible for the leadership of 
the Board, setting its agenda and monitoring 
its effectiveness. He ensures effective 
communication between shareholders and the 
Board. He facilitates both the contribution of 
the Non-executive directors and constructive 
relations between the Executive and Non-
executive directors. He ensures that the Chief 
executive ofﬁ cer develops a strategy which is 
supported by the Board as a whole. Malcolm 
Miller, the Chief executive ofﬁ cer, is responsible 
for executing the strategy once agreed by the 
Board.
All Non-executive directors are the only 
members of the Nomination, Audit and 
Remuneration Committees.
Biographies of these directors can be found on 
pages 14 and 15.
Board process
The Board is accountable to shareholders for 
ensuring that the Company is appropriately 
managed and achieves the strategic 
objectives it sets. The Board discharges those 
responsibilities through an annual programme 
of meetings, which include the approval of 
overall budgetary planning and business 
strategy. The Board reviews the Company’s 
internal controls and risk management policies 
and approves its governance structure and code 
of ethics.
The Board appraises and approves major 
ﬁ nancing, investment and contractual decisions 
in excess of deﬁ ned thresholds. In addition the 
Board evaluates and monitors the performance 
of the Group as a whole. This includes:
• engaging at Board meetings with the Chief 
executive ofﬁ cer, the other Executive directors 
as appropriate on the ﬁ nancial and operating 
performance of Raymarine plc and external 
issues material to the Group’s prospects;
• evaluating progress towards the achievement 
of the Group’s ﬁ nancial and business 
objectives and annual plans; and
• monitoring all of the material risks facing the 
Group.
The Board has a procedure through which the 
directors are able to take independent advice 
at the Company’s expense in the furtherance of 
their responsibilities. The directors have access 
to the advice and services of the Company 
Secretary. The Company Secretary is responsible 
to the Board and is available to individual 
directors in respect of Board procedures 
ensuring that they are complied with. The 
Company has provided the directors and ofﬁ cers 
of the Company with appropriate insurance 
cover.
The terms and conditions of appointment 
of Non-executive directors are available for 
inspection at the Company’s registered ofﬁ ce 
during normal business hours and at the AGM.
All new directors are submitted for election by 
the shareholders in their ﬁ rst year. All directors 
have to submit themselves for re-election at 
least every three years if they wish to continue 
serving and are considered by the Board to be 
eligible.
The appointment of Jim Webster as Non-
executive director on 16 January 2006 was 
made following the required process as 
indicated below with the aid of external 
professional recruitment advisors. Jim Webster 
The directors attendance at the scheduled 
meetings during the year ended 31 December 
2006 was as follows:
Raymarine plc Annual Report 2006 17 also became a member of the Nomination 
Committee upon his appointment to the 
Board and Chairman of the Remuneration 
Committee.
Upon appointment, all directors, Executive 
and Non-executive, receive a formal 
induction programme which includes 
meeting the other directors and key senior 
executives, visiting site locations and 
attending formal presentations on the 
Company and its activities.
Training for existing directors is provided 
on an as needed basis and includes site 
visits, discussions with senior executives 
on speciﬁ c aspects of the business and 
Board presentations covering such aspects 
as pensions, health and safety issues and 
regulatory changes. The Board regularly 
assesses the need for directors’ training.
In addition, the Board has established 
an Audit Committee, a Remuneration 
Committee and a Nomination Committee 
with formally delegated duties and 
responsibilities, each of which has written 
terms of reference. These terms of reference 
are available on the website 
www.raymarine.com or at the AGM.
The executive operational management 
team, comprising the Executive directors 
and other senior managers, meet weekly.
The Audit Committee
The Audit Committee meets formally at 
least twice per year and otherwise as 
required. The Audit Committee reviews all 
matters relating to ﬁ nancial controls and 
internal reporting process, the internal 
control system, the scope and results of 
external audits, the independence and 
objectivity of the external auditors and 
keeps under review the effectiveness of the 
Company’s controls and risk management. 
The committee is authorised by the Board 
to seek and obtain any information it 
requires from any ofﬁ cer or employee 
of the Company and to obtain external 
legal or other independent advice as is 
deemed necessary. At the invitation of 
the committee, the Chairman, the Chief 
executive ofﬁ cer, the Finance director, other 
directors, representatives from the ﬁ nance
function and the external auditors may attend 
and speak at the meetings. Two meetings of 
the Audit Committee took place during the year 
ended 31 December 2006.
The Audit Committee is also responsible for 
evaluating the need for an internal audit 
function. The evaluation and assessment is 
carried out considering the size and complexity 
of the business and other circumstances. The 
committee considers an internal audit function 
is not required at this stage, but will continue to 
monitor the evolution of the business.
The committee is also responsible for making 
recommendations to the Board in respect of the 
appointment, or re-appointment, of the Group’s 
external auditors and, subject to the approval 
of shareholders, recommends to the Board the 
audit fee to be paid to the external auditors. The 
objectivity and independence of the external 
auditors is considered on a regular basis, with 
particular regard to the level of non-audit fees.
All the members of the Audit Committee as a 
whole have recent relevant ﬁ nancial experience.
The Audit Committee is chaired by Paul 
Boughton.
The Remuneration Committee
The Remuneration Committee determines 
the terms of service and remuneration of 
the Chairman, Executive directors and senior 
management. Details of the Remuneration 
Committee, together with a statement of the 
Group’s remuneration strategy, policy and 
details of directors’ remuneration are set out in 
the Directors’ remuneration report on pages 20 
to 23. 
Jim Webster was appointed Chairman of the 
Remuneration Committee on 16 January 2006.
The Nomination Committee
The Nomination Committee reviews the 
structure, size and composition of the 
Board and proposes appointments to and 
retirement of members from the Board and 
other senior positions. In addition, it makes 
recommendations to the Board on these matters 
as appropriate with the objective of maintaining 
within the Company’s organisation the right 
balance of skills, knowledge and experience 
necessary to achieve the Company’s objectives. 
The committee meets formally at least twice a 
year and otherwise as required. Detailed job 
descriptions are provided to the committee 
for all senior roles. Potential candidates must 
pass a rigorous interview process with the 
Nomination Committee members, and also on 
occasion, with external advisors, before a formal 
recommendation is made to the Board. When 
appointing a Non-executive director, a formal 
notice is sent clearly stating the expectations of 
the Company with respect to time commitments, 
committee membership and other duties. 
The Nomination Committee is chaired by 
Nicholas Turner.
Going Concern
After making enquiries, the directors have 
formed a judgment, at the time of approving 
the ﬁ nancial statements, that there is a 
reasonable expectation that the Company and 
the Group have adequate resources to continue 
in operational existence for the foreseeable 
future. For this reason, the directors continue to 
adopt the going concern basis in preparing the 
ﬁ nancial statements.
Internal Controls
1. Framework
The Board has established procedures to meet 
the requirements of the new Combined Code 
and its related guidance. These procedures, 
which are subject to a regular review, provide 
an ongoing process for identifying, evaluating 
and managing any signiﬁ cant risks faced by the 
Group. The internal control framework includes 
central direction, resource allocation and risk 
management of the key activities of research 
and development, manufacturing, marketing 
and sales, legal, human resource, information 
systems and ﬁ nancial practice.
2. Responsibility
The Board has accountability for reviewing 
and approving the adequacy and effectiveness 
of internal controls operated by the Group, 
including ﬁ nancial, operational and compliance 
controls and risk management. The responsibility 
for establishing detailed control and risk 
management procedures within each part of the 
business lies with the Executive directors.
Raymarine plc Annual Report 2006 18 3. Control environment
The Board is committed to business 
integrity, high ethical and moral values and 
professionalism in all of the Group’s activities. 
Managers and employees are required to 
comply with these principles. There is a deﬁ ned 
organisational structure with clear lines of 
responsibility and delegated authority which 
allows the Board to plan, execute, control and 
monitor the business in a manner consistent 
with the achievement of the Group’s objectives. 
The day-to-day business management is 
delegated to the Executive directors and senior 
managers under the direction of the Chief 
executive ofﬁ cer. As noted above, the Board 
retains certain key decisions to itself, enabling 
it to maintain control over the key business 
decision-making processes and signiﬁ cant 
transactions in terms of size, type or risk.
4. Monitoring
The Group prepares all ﬁ nancial information in 
compliance with generally accepted accounting 
practice. As part of this framework there is a 
comprehensive planning system with an annual 
budget approved by the Board. The results 
of the operating units are reported monthly 
and compared to the budget together with 
commentary on key variances to forecast, 
budget and prior year. Forecasts are prepared 
regularly throughout the year. The Group has 
a ﬁ nancial reporting manual detailing the key 
procedures and controls expectations. Reports 
on internal ﬁ nancial controls, including any 
reports from the external auditors, are reviewed 
by the Audit Committee.
5. Risk assessment
The Board has taken into account the relevant 
provisions of the Combined Code with respect 
to risk assessment in formulating the systems 
and procedures in operation in the Group. The 
Board is aware of the need to conduct regular 
risk assessments to identify any deﬁ ciencies in 
the controls currently operating over all aspects 
of the Group’s activities. The Group conducts 
formal ongoing risk assessments covering all 
aspects of its business. It will also report by 
exception on any material changes. Once a 
risk has been identiﬁ ed, the Board assesses 
the probability of its occurrence and potential 
impact of that risk. The Board then reviews the 
effectiveness of, or puts in place, mitigating 
controls to minimise any impact to the Group.
6. Effectiveness of controls
The directors conﬁ rm that they have reviewed 
the effectiveness of the system of internal 
control, which has been in operation throughout 
the year, and up to the date of this report in 
line with the revised Combined Code and 
the Turnbull guidance. The Board continues 
to take steps to embed internal control and 
risk management procedures further into 
the operations of the business and to deal 
with areas of improvement which come to 
management’s and the Board’s attention.
The system of internal controls is designed to 
manage, rather than eliminate, the risk of not 
achieving business objectives and can only 
provide reasonable and not absolute assurance 
against material misstatement or loss.
Health, safety and the environment
The Company is committed to the health, safety 
and welfare of its employees and recognises 
that safe operations depend not only on 
technically sound equipment and facilities, but 
also on competent people and an active health, 
safety and environmental culture.
The Group seeks to achieve high standards of 
environmental practice. The Group monitors 
environmental developments and seeks to 
take appropriate action, including committing 
appropriate levels of capital expenditure, where 
required. While the Group has a programme 
of continued improvement, no speciﬁ c major 
capital expenditure is currently expected.
The Company’s management is accountable 
for understanding and managing health, safety 
and environmental risks and in meeting health, 
safety and environmental objectives. During 
2006 the Company formalised a documented 
health and safety policy. The head of Human 
Resources is responsible for coordinating 
the application of such policy. A full update 
was given to the Board in November 2006 
conﬁ rming that all obligatory requirements 
are in place and complied with and the risk 
assessment is ongoing.
Relations with shareholders
The Group recognises the importance of regular 
communication with all of its shareholders. The 
full Annual Report and Financial Statements and 
the Interim Report are issued to shareholders 
each year, and are published on the Group’s 
website. These reports are intended to 
provide shareholders and other interested 
parties with a clear and balanced 
understanding of the Group’s operational 
performance, prospects and its ﬁ nancial 
results and position.
All investors are kept informed of key 
business activities, decisions, appointments 
etc. via regulatory news, press releases 
and the Group’s website. There is also 
regular dialogue with institutional 
shareholders throughout the year and 
general presentations are made by the 
Chief executive ofﬁ cer and Finance director 
following the announcement of the 
annual and interim results. Other directors, 
including Non-executive directors, attend 
meetings with major shareholders if 
requested.
All shareholders have the opportunity to put 
questions to the directors at the Company’s 
AGM, following a report which is made 
on the highlights of the key business 
developments during the ﬁ nancial year 
under review. The chairmen of each of the 
Remuneration and Audit Committees attend 
the AGM to answer speciﬁ c questions 
from shareholders. Notice of the AGM 
is circulated to all shareholders at least 
21 working days prior to the meeting. 
Separate resolutions are proposed at the 
AGM on each substantially separate issue. 
Proxy votes are counted on all resolutions 
and, where votes are taken by a show of 
hands, the proxy results are subsequently 
announced to the meeting.
Raymarine plc Annual Report 2006 19 Directors ʼ remuneration report
Introduction
This report has been prepared in accordance 
with the Directors’ Remuneration Report 
Regulations 2002 (“the Regulations”). 
It outlines the membership of the 
Remuneration Committee (“the 
Committee”) and explains the various 
elements of the Company’s remuneration 
policy together with details of directors’ 
remuneration in respect of the year ended 
31 December 2006. In accordance with the 
Regulations, a resolution to approve this 
report will be proposed at the Company’s 
Annual General Meeting to be held on 18 
May 2007.
The Regulations require the auditors to 
report to shareholders on the information 
contained in part of this report and to 
state whether, in their opinion, that part 
of the report has been properly prepared 
in accordance with the Companies Act 
1985 (as amended by the Regulations). 
This report has therefore been divided into 
separate sections of audited and unaudited 
information.
The Board considers that the Company 
has complied throughout the year with the 
requirements of the Combined Code in 
relation to directors’ remuneration.
Unaudited information
Remuneration Committee
The Committee comprises solely Non-
executive directors and is chaired since 
16 January 2006 by Jim Webster. Other 
members of the Committee who served 
during the year were Peter Ward, Paul 
Boughton and Nicholas Turner, who was 
Chairman until 16 January 2006. The 
Board is responsible for implementing 
the recommendations of the Committee. 
Its terms of reference are available on 
the Company’s website or direct from the 
Company Secretary. In accordance with the 
Committee’s terms of reference, no director 
may participate in discussions relating to his 
own terms and conditions of remuneration. 
By invitation, the Chief executive ofﬁ cer, 
the head of Human Resources and external 
advisors may attend the Remuneration 
Committee, but are not present when matters 
relating directly to their own remuneration are 
discussed.
New Bridge Street Consultants LLP (NBSC) 
has provided independent external advice 
throughout the year to assist the Committee 
in formulating its recommendations to the 
Board. NBSC were appointed by the Committee 
and only provide advice to the Company in 
respect of senior executives’ remuneration and 
employee share schemes generally. 
The Committee met four times during the 
year ended 31 December 2006 to consider 
the employment terms and remuneration of 
the Chairman, Executive directors and senior 
management.
Policy
The key policy objective of the Committee is 
to secure, motivate and retain high calibre 
executives with the skills and experience 
necessary to direct and manage the affairs of 
the Company. The Committee aims to align 
its remuneration policies with the Company’s 
medium and long-term strategy and takes 
account of pay and conditions elsewhere in the 
business when determining Executive directors’ 
remuneration. The policy can be summarised as 
follows:
•  a package of pay and beneﬁ ts, commensurate 
with comparable packages by reference to a 
deﬁ ned group of similar companies;
• an annual performance incentive bonus 
scheme, providing rewards which reﬂ ect the 
Company’s performance and the contribution 
of individual directors in a particular year;
• long-term performance share awards, which 
encourage executives to drive long-term 
shareholder value by allowing them to 
participate in the increased shareholder value 
delivered; and
• a payment of 12% of their base salary 
towards their personal pension.
Executive directors are eligible to receive a 
bonus of up to 100% of the base salary for the 
achievement of stretching targets which are 
principally for company ﬁ nancial performance 
but also include an element for personal 
performance.
The Committee keeps the general policy on 
remuneration described above under annual 
review. The Committee’s implementation of 
the remuneration policy is described below.
In 2006 the Remuneration Committee 
introduced a formal policy of Shareholding 
Guidelines. This policy encourages all 
Executive directors to build and maintain 
a shareholding in the Company. These 
guidelines will be linked to the vesting of 
future awards granted under the 2005 
Performance Share Plan and any other 
executive share-based incentive plan that the 
Company may operate from time to time.
Executive directors are encouraged to build 
and maintain a shareholding equivalent 
in value to no less than their base 
salary.  In order to ensure that progress 
is made towards this target, executives 
are requested to retain shares to a value 
of 50% of the post tax gain under all 
executive share schemes until the threshold 
is attained.
The Committee will review regularly the 
operation of this policy.
Base salary and beneﬁ ts
When setting base salaries, consideration 
is given to the director’s experience, 
performance and responsibilities. Salaries 
are reviewed annually on 1 January. The 
Committee aims to pay base salaries at 
no higher than a market median level in 
comparison to companies of a similar size 
and nature. In addition to base salaries, 
Executive directors receive beneﬁ ts in kind, 
comprising the provision of a Company 
car or a car allowance, expenses in lieu 
of relocation, life, medical and health 
insurance.
Pensions
The Company provides the Executive 
directors with contributions towards 
pension of 12% of basic salary. In the 
case of Terry Carlson this is paid into 
his company pension scheme. For Tony 
Osbaldiston and Malcolm Miller this is paid 
through the payroll.
Raymarine plc Annual Report 2006 20 Annual performance incentive bonus
For 2007, the annual bonus potential will be up 
to a maximum of 100% (2006: 100%) of an 
executive’s base salary. Bonuses will be earned 
primarily on the achievement of operating proﬁ t 
targets (70% of bonus potential), with the 
remainder payable on meeting speciﬁ c personal 
performance objectives. 
Long-term incentive plans (LTIP) 
Shortly before Admission the Company adopted 
the Performance Share Plan (PSP) and the 
Executive Share Option Plan (ESOP). In 2006 
the PSP was used as the sole long-term 
incentive arrangement. Under the PSP , Executive 
directors may be granted an award entitling 
them to ﬁ xed numbers of ordinary shares at the 
end of a three year period, subject to continued 
employment and performance conditions being 
satisﬁ ed. In any year, except in exceptional 
circumstances, awards will not be granted to an 
individual with a value of greater than 150% 
of their annual earnings. The Company has 
adopted a phased annual grant policy and in 
2007 awards may be made over shares worth 
80% to 100% of an executive’s salary (110% 
of salary for the Chief executive ofﬁ cer). Awards 
over lower percentages may be made to less 
senior executives. 
Awards will be subject to performance 
conditions determined each year by the 
Remuneration Committee. For awards granted 
in 2006, the performance was measured by 
reference to the Company’s total shareholder 
return (TSR) against the companies comprising 
the FTSE Small Cap Index over a three-year 
period from the start of the ﬁ nancial year in 
which an award is made. There is no provision 
to retest the performance condition. A quarter 
of the award vests at median TSR performance, 
with full vesting at upper quartile TSR 
performance. 
TSR of all companies is averaged over a three-
month period prior to the beginning and end of 
the performance period.
TSR was selected so as to align the objectives 
of the directors with those of shareholders. 
The FTSE Small Cap Index is an appropriate 
benchmark as the Company is a constituent of 
this Index and there is no appropriate direct 
peer group for TSR performance measurement.
TSR performance is independently calculated by 
NBSC and veriﬁ ed by the Committee.
For awards in 2007 the Remuneration 
Committee will set appropriately demanding 
conditions. At the current time it is intended 
that a similar TSR based performance condition 
will apply. 
Total shareholder return
The graph below shows the total shareholder 
return for the Company since the date of listing 
compared with the FTSE Small Cap Index. 
The Company is a member of the FTSE Small 
Cap Index and the constituents of this index 
are used to determine vesting under the PSP . 
Therefore, the Committee considers this is the 
most appropriate benchmark against which the 
relative performance of the Company should be 
measured.
As the chart shows, the performance of the 
Company since ﬂ otation has been excellent 
relative to this Index, with an investment in 
Raymarine shares generating a total return of 
over 200% in just over two years.
Total shareholder return 
Source: Datastream
0
50
100
150
200
250
300
350
Raymarine plc FTSE Small Cap Index
This graph shows the value, by 31 December 2006 of £100 invested in Raymarine on 6 December 2004 compared with the value of £100 invested in th
FTSE Small Cap Index. The other points plotted are the values at intervening financial year-ends.
Raymarine plc Annual Report 2006 21 Contract date Term Notice by Company Notice by director
Malcolm Miller 6 December 2004 Rolling 12 months 6 months
Terry Carlson 6 December 2004 Rolling 12 months 6 months
Tony Osbaldiston 6 December 2004 Rolling 12 months 6 months
External appointments
Where Board approval is given for an Executive 
director to accept an outside Non-executive 
directorship, unless the appointment is in 
connection with Group business, the individual 
director is entitled to retain any fees received. 
Two directors hold outside Non-executive 
directorships. Malcolm Miller is a Non-executive 
director at AVIS Europe plc (2006 fee: £37,500; 
2005 fee: £37,500) and Tony Osbaldiston is a 
Non-executive director at BSS Group plc (2006 
fee: £30,125; 2005 fee: £29,000).
Non-executive directors’ remuneration
The remuneration of Non-executive directors is 
determined by the Board within the limits set 
out in the Company’s Articles of Association. 
The Non-executive directors do not participate 
in the bonus scheme, long-term incentive 
arrangements, nor do they receive beneﬁ ts in 
kind or compensation on early termination of 
their appointment. 
In the event that notice to terminate their 
appointment is given by either party, there is a 
three month written notice period required.
Dates of original appointment of Non-executive 
directors:
Peter Ward  1 December 2004
Paul Boughton 1 December 2004
Nicholas Turner 28 January 2001
Jim Webster 16 January 2006
The terms of appointment of Non-executive 
directors are documented in letters of 
appointment between the Company and the 
director. Their term of appointment does not 
extend beyond the date on which they are next 
subject to re-election by shareholders.
Audited information
The remuneration of the directors of the 
Company is set out in the table opposite. 
With effect from 1 January 2007, the 
remuneration for each Non-executive director 
will be £30,000 per annum with an additional 
£5,000 for chairing each of one or more of 
the internal committees with the Chairman’s 
remuneration increased to £95,000 per annum. 
The Executive directors’ bonus scheme for the 
year ended 31 December 2006 was based on 
operating performance and achievement of 
the personal objectives set at the beginning of 
the year. Recognising the performance of the 
Company over the year, the actual performance 
achieved provided the Executive directors with a 
bonus equal to 50% of basic salary. There is an 
additional bonus equal to a maximum of 30% 
of basic salary which is related to non-ﬁ nancial 
strategic performance. In addition a one-off 
bonus equal to a maximum of 20% of basic 
salary will be paid based on the achievement 
of the outsourcing project milestones. Payout is 
expected to be close to the maximum for 2006.
An element of the performance related bonus 
will be converted into shares. The number of 
shares assigned to a director will be determined
by dividing the cash amount of the portion of 
bonus payable in shares, by the closing share 
price on the “share award date”. The “share 
award date” is the business day after the 
announcement of the results or if in a closed 
period, the day after the closed period ends and 
the award of deferred shares will be granted. 
Performance related bonuses and beneﬁ ts 
in kind are not pensionable. Details of the 
contributions made by the Company in respect 
of directors under deﬁ ned contribution schemes 
are set out opposite.
Service contracts
No Executive director has a service contract requiring a notice period from the Company of more than one year. The policy on early termination is to 
provide compensation which reﬂ ects the Company’s contractual obligations. In the event that a notice to terminate the service contract is given by 
either party, the Company may use its sole discretion to pay the executive a sum equal to 120% of his basic salary in lieu of any unexpired period of 
notice. This payment relieves the Company of any liability for ﬁ xed emoluments in any potential termination package.
Details of the Executive directors’ service 
contracts are:
Raymarine plc Annual Report 2006 22 Scheme
At 31/12/05 
Number
1
Awards granted 
Number
Awards vested 
Number
2
Unvested 
Number
2
At 31/12/06 
Number
Crystallising 
dates of 
awards
Name of director
Malcolm Miller
LTIP 2005 194,515 – – – 194,515 28/04/08
LTIP 2006 – 93,711 – – 93,711 31/03/09
Kieran Breheny
LTIP 2005 74,456 – 49,637 24,819 – –
LTIP 2006 – 35,870 11,957 23,913 – –
Terry Carlson
LTIP 2005 105,052 – – – 105,052 28/04/08
LTIP 2006 – 54,974 – – 54,974 31/03/09
Tony Osbaldiston
LTIP 2005 136,502 – – – 136,502 28/04/08
LTIP 2006 – 65,762 – – 65,762 31/03/09
 
Salary and fees
£’000
Beneﬁ ts in kind
1
£’000
Performance 
related
annual bonus
£’000
Pension 
Contributions
£’000
Total for the 
year ended 31 
December 2006 
£’000
Total for the year 
ended 31 December 
2005 
£’000
Executive
Malcolm Miller 296 17 296 36 645 514
Kieran Breheny
2
140 8 – 22 170 264
Terry Carlson
3
204 20 184 21 429 325
Tony Osbaldiston 227 10 227 28 492 414
Non-executive
Peter Ward
4
88 – – – 88 40
Roger Thomas
5
–––– – 45
Paul Boughton 30 – – – 30 30
Nicholas Turner 30 – – – 30 31
Jim Webster 29 – – – 29 –
Total 1,044 55 707 107 1,913 1,663
Notes: 
1
 The beneﬁ ts in kind relate to fully expensed car beneﬁ t, health and life insurance and accommodation (in lieu of relocation).
2
 Resigned as a director of the Company on 22 November 2006.
3
 The emoluments for Terry Carlson were designated and paid in US$. The ﬁ gures have been converted at the average rate of US$1.81 (2005: US$1.84).
4
 2006 includes £5,000 which relates to the prior period.
5
 Retired on 30 September 2005.
Share options and incentives
The PSP entitles Executive directors and other employees of the Group to be granted awards entitling them to a ﬁ xed number of ordinary shares at the 
end of speciﬁ ed periods, subject to conditions relating to total shareholders’ return being satisﬁ ed. Details of directors’ interests in the schemes are as 
follows:
The remuneration of the directors of the Company is set out below: 
Notes:
1
 This has been corrected to reﬂ ect a small adjustment to foreign exchange rate used and share price at date of award.
2
 This represents the early vesting of a proportion of the outstanding PSP awards to Kieran Breheny. This was considered to be appropriate by the Remuneration Committee, after taking account of the circumstances of his 
departure and the fact that it was agreed that no compensation would be payable for the termination of his service contract. The level of vesting of the PSP awards took account of the outstanding TSR performance of the 
Company against the TSR performance condition applicable to both of his outstanding awards up to the time of his cessation of employment, which indicated a maximum level of vesting. There was a scaling back of awards 
recognising the shorter period of service than the award was originally intended to cover. 
The prices of an ordinary share and the date when the awards were made 
were as follows:
LTIP 2005 3 May 2005   £2.15 
LTIP 2006 1 April 2006  £3.45
Both awards are subject to the performance condition for PSP awards as 
outlined in the policy section. The target for the above awards is explained 
above in the policy on long-term incentives.
The lowest and highest share prices during the year ended 31 December 
2006 were 240p and 471.5p. The mid-market price of the Company’s 
shares were 242p (1 January 2006) and 471.5p (31 December 2006). 
Jim Webster
Chairman of Remuneration Committee
Raymarine plc Annual Report 2006 23 1923  Raytheon launches ﬁ rst Depth Sounder
1958  Raytheon acquires Apelco
1974  Nautech/Autohelm is formed
1975  British Design Award for the ﬁ rst Autohelm tiller autopilot
1984  Launch of Autohelm ‘keyboard micro’ autopilots, the ﬁ rst cockpit autopilots in the world to employ digital control systems
1988  British Design Award for Autohelm 4000 cockpit-installed wheel autopilot
1989  British Design Award and Silk Cut Nautical Award for the SeaTalk digital communications protocol, linking instruments and autopilots
1991  Launch of Autohelm NavCenter, ﬁ rst generation electronic chartplotter
1992  Integration of GPS technology into SeaTalk navigation, instrument and autopilot control systems
1992  DAME Award for ST2000 tiller autopilot
1996  Imtec Award for Apelco L365 entry-level LCD ﬁ shﬁ nder
  DAME Award for the ST80 Instrument system
1997  Launch of the Pathﬁ nder Radar – ﬁ rst leisure marine radar to be designed and built outside Japan for 15 years
1999  Launch of High Speed Bus (HSB) protocol integrating high resolution radar and chartplotters
2000  Acquisition of Kiwitech and launch of RayTech PC software packages
  DAME Award for RL80C and RL80CRC 10” colour radar and radar/chartplotter
2001  Launch of Advanced Steering Technology (AST) inboard autopilot course computers
2002  Imtec Award for RayTech Version 4 PC Navigation software integrated with onboard navigation systems
2003  NMEA ‘Best in Show’ HDFI – High Deﬁ nition Fish Imaging
2004  DAME Award for C series multifunction displays
 NMEA Best in Show Award 2004 for C series multifunction display
 December 6 – Raymarine plc ﬂ oats on the London Stock Exchange
2005 Motor Boating magazine Best of the Year Awards for E series High Performance multifunction navigation displays and S1000 autopilot
 NMEA Best in Show Award 2005 for E series multifunction display
2006 SAIL Pittman Award for CAM100 night and day video camera 
 RYA Powerboating Gold Award – Sponsor of the Year
 Raymarine completes outsourcing of manufacturing
2007 SAIL Pittman Innovation Award in Electronics category for LifeTag
 Raymarine Asia Pty Ltd founded
Company history
Raymarine plc Annual Report 2006 24 25 Raymarine plc Annual Report 2006 
FINANCIAL INFORMATION Raymarine plc Annual Report 2006 26
Interest at end of year Interest at start of year
Name of director
Peter Ward 40,000 40,000
Malcolm Miller 778,192 778,192
Terry Carlson 100,400 351,032
Tony Osbaldiston 145,905 145,905
Paul Boughton 26,000 26,000
Nicholas Turner 80,615 80,615
Jim Webster 5,000 –
Directors ʼ report
The directors present their annual report on the 
affairs of the Group, together with the ﬁ nancial 
statements and auditors’ report, for the year 
ended 31 December 2006.
Principal activities
The principal activities of the Group comprise 
the manufacture and marketing of navigation 
equipment within the marine market; 
approximately 90% of Group production is 
exported.
The subsidiaries principally affecting the proﬁ ts 
or net assets of the Group in the year are listed 
in Note 43 to the ﬁ nancial statements.
Business review
A review of the business of the Group, is set 
out in the Chairman’s statement on page 2, the 
Chief executive ofﬁ cer’s review on pages 5 to 
6 and the Financial review on pages 8 to 13. A 
list of principal risks and uncertainties is given 
below. The ﬁ nancial review also contains the 
Group’s policy and objective in respect of the 
use of ﬁ nancial instruments.
Details of signiﬁ cant events since the balance 
sheet date are contained in Note 34 to the 
ﬁ nancial statements.
Dividends
The directors recommend a ﬁ nal dividend of 
5.95p per ordinary share to be paid on 25 May 
2007 to ordinary shareholders on the register 
on 4 May 2007 which, together with the 
interim dividend of 2.8p paid on 29 September 
2006, makes a total of 8.75p for the year 
(2005: 7.0p).
Directors
The directors, who served throughout the year 
except as noted below, were as follows:
Peter Ward (Non-executive chairman)
Malcolm Miller (Chief executive ofﬁ cer)
Kieran Breheny (Resigned 
 22 November  2006)
Terry Carlson  
Tony Osbaldiston   
Paul Boughton
Nicholas Turner (Non-executive) 
Jim Webster (Non-executive; 
 appointed 16 January 2006) 
 
Company Secretary
Terri Howell
Although no directors are required under the 
Company’s Articles of Association to offer 
themselves for re-election, the Board considers 
it good practice to provide for the regular re-
appointment of directors. Accordingly, at the 
AGM Peter Ward and Malcolm Miller will offer 
themselves for re-election as directors of the 
Company.
Biographical details of all directors can be found 
on pages 14 and 15.
Supplier payment policy
The Company’s policy, which is also applied 
by the Group, is to ﬁ x terms of payment with 
suppliers when agreeing the terms of business 
transactions, to ensure that the supplier is 
aware of those terms and to abide by the 
agreed terms of payment when the supplier has 
satisfactorily provided the goods or services in 
accordance with the terms of contract. Trade 
creditors of the Company at 31 December 2006 
were equivalent to 18 days (2005: 38 days) 
purchases, based on the average daily amount 
invoiced by suppliers during the year.
Directors’ interests
The directors who held ofﬁ ce at 31 December 2006 had the following interests 
in the ordinary shares of the company according to the register of directors’ 
interests:
These shareholdings are all beneﬁ cial interests and include shares held by Directors’ spouses and other connected persons. No changes took place in 
the interests of directors between 31 December 2006 and 26 February 2007. 
The interests of the directors under the long-term incentive scheme of the Company are shown in the Directors’ remuneration report.
The Company has made qualifying third party indemnity provisions for the beneﬁ t of its directors which were made during the year and remain in force 
at the date of this report. 27 Raymarine plc Annual Report 2006 
Charitable and political contributions
The Group made no political contributions 
during the year (2005: £nil). Charitable 
donations amounted to £2,373 (2005: £5,145).
Substantial shareholdings
On 26 February 2007, the Company had been 
notiﬁ ed, in accordance with sections 198 
to 208 of the Companies Act 1985, of the 
following interests in the ordinary share capital 
of the Company.
Name of holder Number %
AXA S.A. 10,718,968 12.95
Scottish Widows 6,668,480 8.05
Standard Life 6,597,342 7.97
NewSmith Asset Management 5,189,197 6.27
Aberforth 4,110,720 4.96
Legal & General 3,517,014 4.25
Hermes Pension Management 2,492,266 3.01
Acquisition of the Company’s own 
shares
At the end of the year the directors had 
authority, under the shareholders’ resolution 
of 18 May 2006, to purchase through the 
market 8,279,278 of the Company’s ordinary 
shares at prices ranging between £0.01 and an 
amount equal to 105% of the average of the 
middle market quotations of the Company’s 
ordinary shares as derived from the London 
Stock Exchange Daily Ofﬁ cial List for the ﬁ ve 
business days immediately preceding the day on 
which such share is contracted to be purchased 
(exclusive of expenses paid) per share. This 
authority expires on 17 May 2007.
Employees
The Group operates regular team brieﬁ ngs 
on the ﬁ nancial performance, business 
activities and related matters to ensure good 
communication across the workforce. An ‘open 
door’ policy is operated under which any 
employee may seek information from senior 
management on business performance.
Group policy with regard to disabled people 
is to provide equal employment opportunity 
by giving full and fair consideration to their 
applications for employment and continuing 
employment, wherever possible, of employees 
who become disabled and providing suitable 
opportunities for their training, career 
development and promotion.
The employee share scheme has been running 
successfully since its inception in December 
2004. It is open to all employees and allows 
participants the opportunity to buy shares by 
deduction from their pre-tax salary. In addition, 
all employees receive an annual bonus related 
to the overall proﬁ tability of the Group.
Principal risks and uncertainties
The Board has a pro-active approach to risk 
management with the aim of protecting its 
employees and customers and safeguarding the 
interests of the Company and its shareholders.
Raymarine plc has speciﬁ c policies in place to 
ensure that risks are properly evaluated and 
managed at the appropriate level within the 
business. A risk assessment exercise is carried 
out across the Group regularly and the outcome 
is reviewed by the Board bi-annually.
Outlined below is a summary of the key risks 
and uncertainties affecting the Group and those 
activities undertaken to mitigate them:
Product reliability and safety
Raymarine products must be robust and reliable 
to withstand the harsh environments they are 
used in and to aid safety on the water where 
appropriate. Products are designed with this 
in mind and we have invested additional 
engineering resource to this end. All new 
product introductions must undergo extensive 
testing, both on and off the water, before 
the new products are launched to meet our 
rigorous standards. 
Suppliers
The future revenues of the Group could 
be adversely affected by an interruption of 
supply from our EMS outsourcing partner 
for a protracted length of time. This risk has 
been mitigated with the inventory held in the 
distribution channel and the extensive business 
continuity plan in place with our EMS partner. 
This includes utilising spare capacity at multiple 
sites around the world.
The Group is reliant on the continuance of 
supply from sole source component suppliers. 
There could be a risk to revenue if a sole source 
supplier was not able to supply components 
for a protracted length of time. This risk is 
mitigated by sourcing a second supplier for key 
components.
Technology and systems
The Group is reliant on certain technologies and 
systems. The business process is aligned with 
these systems and any potential failure could 
have an impact on business operations. To 
mitigate these risks we have a disaster recovery 
plan in place with various back-up procedures 
and third party support. The Group is in the 
process of implementing a new Enterprise 
Resource Planning system and this will further 
reduce this risk.
People retention and motivation
To develop, support and market its products 
the Group must employ and retain highly 
skilled and motivated employees with particular 
expertise. The Group’s strategic plans could be 
undermined by failure to recruit or retain key 
personnel. This risk has been mitigated by the 
implementation of a management development 
programme, appraisal process, succession 
planning, appropriate remuneration packages 
and a rigorous recruitment process.
Annual General Meeting
The AGM will be held in the Little Ship Club, 
Bell Wharf Lane, Upper Thames Street, London, 
EC4R 3TB on Friday 18 May 2007 at 11 am. The 
Notice of Meeting is contained in a separate 
letter from the Chairman accompanying this 
report.
Auditors
In the case of each person who is a director of 
the Company at the date when this report is 
approved: 
 
•  so far as each of the directors is aware, there 
is no relevant audit information of which the 
Company’s auditors are unaware; and 
• each of the directors has taken all the steps 
that they ought to have taken as a director to 
make themselves aware of any relevant audit 
information (as deﬁ ned) and to establish that 
the Company’s auditors are aware of that 
information.
This conﬁ rmation is given and should be 
interpreted in accordance with the provisions of 
section 234ZA of the Companies Act 1985.
Deloitte & Touche LLP have expressed their 
willingness to continue in ofﬁ ce as auditors of 
the Company and their re-appointment will be 
put to members at the Annual General Meeting.
Raymarine plc
Robinson Way
Anchorage Park
Portsmouth 
Hampshire PO3 5TD
By order of the Board
Malcolm Miller 
Chief executive ofﬁ cer
26 February 2007 Raymarine plc Annual Report 2006 28
Statement of directors ʼ responsibilities
The directors are responsible for preparing the 
Annual Report, Directors’ remuneration report 
and the ﬁ nancial statements in accordance 
with applicable law and regulations.
Company law requires the directors to 
prepare ﬁ nancial statements for each ﬁ nancial 
year. The directors are required by the IAS 
Regulation to prepare the Group ﬁ nancial 
statements under International Financial 
Reporting Standards (IFRSs) as adopted by 
the European Union and have also elected 
to prepare the parent company ﬁ nancial 
statements in accordance with IFRSs as 
adopted by the European Union. The ﬁ nancial 
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 ﬁ nancial statements present fairly for 
each ﬁ nancial year the Company’s ﬁ nancial 
position, ﬁ nancial performance and cash 
ﬂ ows. This requires the faithful representation 
of the effects of transactions, other events 
and conditions in accordance with the 
deﬁ nitions 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 ﬁ nancial 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; and 
• provide additional disclosures when 
compliance with the speciﬁ c requirements 
in IFRSs are insufﬁ cient to enable users 
to understand the impact of particular 
transactions, other events and conditions on 
the entity’s ﬁ nancial position and ﬁ nancial 
performance.
The directors are responsible for keeping 
proper accounting records that disclose with 
reasonable accuracy at any time the ﬁ nancial 
position of the Company and enable them to 
ensure that the ﬁ nancial 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 ﬁ nancial information included on the 
Company’s website. Legislation in the United 
Kingdom governing the preparation and 
dissemination of ﬁ nancial statements may 
differ from legislation in other jurisdictions. 29 Raymarine plc Annual Report 2006 
Independent auditors ʼ report to the members of Raymarine plc
We have audited the Group ﬁ nancial 
statements of Raymarine plc for the year 
ended 31 December 2006 which comprise 
the Consolidated income statement, the 
Consolidated statement of recognised income 
and expense, the Consolidated balance sheet, 
the Consolidated cash ﬂ ow statement, and the 
related Notes 1 to 35. These Group ﬁ nancial 
statements have been prepared under the 
accounting policies set out therein. We have 
also audited the information in the Directors’ 
remuneration report that is described as 
having been audited.
We have reported separately on the parent 
company ﬁ nancial statements of Raymarine 
plc for the year ended 31 December 2006.
 
This report is made solely to the Company’s 
members, as a body, in accordance with 
section 235 of the Companies Act 1985. Our 
audit work has been undertaken so that we 
might state to the Company’s members those 
matters we are required to state to them in 
an auditors’ report and for no other purpose. 
To the fullest extent permitted by law, we do 
not accept or assume responsibility to anyone 
other than the Company and the Company’s 
members as a body, for our audit work, 
for this report, or for the opinions we have 
formed.
Respective responsibilities of 
directors and auditors
The directors’ responsibilities for preparing the 
Annual Report, the Directors’ remuneration 
report and the Group ﬁ nancial statements in 
accordance with applicable law and IFRSs as 
adopted by the European Union are set out in 
the Statement of directors’ responsibilities.
Our responsibility is to audit the Group 
ﬁ nancial 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 Group ﬁ nancial statements give a true 
and fair view, whether the Group ﬁ nancial 
statements have been properly prepared in 
accordance with the Companies Act 1985 and 
Article 4 of the IAS Regulation and whether 
the part of the Directors’ remuneration report 
described as having been audited has been 
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 
Group ﬁ nancial statements. The information 
given in the Directors’ report includes that 
speciﬁ c information presented in the Financial 
review that is cross referred from the Business 
review section of the Directors’ report.
In addition we report to you if, in our opinion, 
we have not received all the information 
and explanations we require for our audit, 
or if information speciﬁ ed by law regarding 
director’s remuneration and other transactions 
is not disclosed.
We review whether the Corporate governance 
statement reﬂ ects the Company’s compliance 
with the nine provisions of the 2003 
Combined Code speciﬁ ed for our review by 
the Listing Rules of the Financial Services 
Authority, and we report if it does not. We 
are not required to consider whether the 
Board’s statements on internal control cover 
all risks and controls, or form an opinion on 
the effectiveness of the Group’s corporate 
governance procedures or its risk and control 
procedures.
We read the other information contained in 
the Annual Report as described in the contents 
section and consider whether it is consistent 
with the audited Group ﬁ nancial statements. 
We consider the implications for our report 
if we become aware of any apparent 
misstatements or material inconsistencies 
with the Group ﬁ nancial 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 Group ﬁ nancial 
statements and the part of the Directors’ 
remuneration report to be audited. It also 
includes an assessment of the signiﬁ cant 
estimates and judgments made by the 
directors in the preparation of the Group 
ﬁ nancial statements, and of whether the 
accounting policies are appropriate to the 
Group’s circumstances, consistently applied 
and adequately disclosed.
We planned and performed our audit so as to 
obtain all the information and explanations 
which we considered necessary in order 
to provide us with sufﬁ cient evidence to 
give reasonable assurance that the Group 
ﬁ nancial statements and the part of the 
Directors’ remuneration report to be audited 
are free from material misstatement, whether 
caused by fraud or other irregularity or error. 
In forming our opinion we also evaluated 
the overall adequacy of the presentation of 
information in the Group ﬁ nancial statements 
and the part of the Directors’ remuneration 
report to be audited.
Opinion
In our opinion:
• the Group ﬁ nancial 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 2006 and of its proﬁ t for the year 
then ended;
• the Group ﬁ nancial statements have been 
properly prepared in accordance with the 
Companies Act 1985 and Article 4 of the 
IAS Regulation; 
• the part of the Directors’ remuneration 
report described as having been audited 
has been properly prepared in accordance 
with the Companies Act 1985; and
• the information given in the Directors’ 
report is consistent with the Group ﬁ nancial 
statements.
Deloitte & Touche LLP
Chartered Accountants and 
Registered Auditors
Southampton, United Kingdom
26 February 2007 Raymarine plc Annual Report 2006 30
Note
Before 
restructuring 
costs
£’000
Restructuring
costs
£’000
Year ended 
31 December 
2006
£’000
Year ended 
31 December 
2005
£’000
Revenue 3
Cost of sales
Gross proﬁ t
Distribution costs
Administrative expenses:
– Research and development 6
– Other administrative expenses
– Amortisation of patents and know-how 13
– Flotation and other non-recurring costs 5a
Restructuring costs 5b
Other operating income – foreign exchange gains
Operating proﬁ t 2,6
Finance income 3,8
Finance costs 9
Proﬁ t before tax
Taxation (charge) / credit 10
Proﬁ t for the year attributable to 
shareholders of the Company
27
Earnings per share (pence)
Basic 12
Diluted 12
Consolidated income statement
Year ended 31 December 2006
All results relate to continuing activities
136,490
(80,258)
56,232
(10,998)
(8,329)
(12,730)
(725)
–
(21,784)
–
469
23,919
–
–
–
–
–
–
–
–
–
(7,823)
–
(7,823)
136,490
(80,258)
56,232
(10,998)
(8,329)
(12,730)
(725)
–
(21,784)
(7,823)
469
16,096
529
(2,534)
14,091
(3,754)
10,337
12.5p
12.2p
121,851
(76,090)
45,761
(9,314)
(7,423)
(9,464)
(725)
321
(17,291)
(10,909)
2,830
11,077
217
(3,232)
8,062
305
8,367
10.1p
10.0p 31 Raymarine plc Annual Report 2006 
Note
2006
£’000
2005
£’000
Gains / (losses) on cash ﬂ ow hedges 26
Exchange differences on translation of foreign currency operations 26
Tax on items taken directly to equity
Net income / (expense) recognised directly in equity
Transfers
Transfer of the initial carrying amount of hedged items on cash ﬂ ow hedges 26
Related deferred tax on transfer to the initial carrying amount of hedged items on cash ﬂ ow hedges
Transferred to proﬁ t and loss on cash ﬂ ow hedges 26
Related deferred tax on items transferred from equity
Vested awards under LTIP 25
Other adjustments
Proﬁ t for the period
Total recognised income and expense for the year attributable to equity shareholders 
of the parent
28
Consolidated statement of recognised income and expense
Year ended 31 December 2006
18
446
(6)
458
–
–
(399)
120
(152)
–
10,337
10,364
(668)
348
200
(120)
3,828
(1,148)
(2,779)
834
–
(75)
8,367
8,907 Raymarine plc Annual Report 2006 32
Note
2006
£’000
2005
£’000
Non-current assets
Intangible ﬁ xed assets 13 44,876 42,300
Property, plant and equipment 14 7,809 7,143
Financial assets 28 16
52,713 49,459
Current assets
Inventories 15 16,849 18,656
Trade and other receivables 16 21,646 16,682
Financial assets 18 – 381
Cash and cash equivalents 2,068 2,042
40,563 37,761
Current liabilities
Bank overdraft 17 7,035 –
Trade and other payables 21 15,640 16,547
Tax liabilities 2,522 2,474
Obligations under ﬁ nance leases 20 291 367
Short-term provisions 22 4,273 5,720
29,761 25,108
Net current assets 10,802 12,653
Non-current liabilities
Trade and other payables 21 192 –
Bank loans 17 38,156 39,618
Financial liabilities 28 16
Deferred tax liabilities 19 466 442
Obligations under ﬁ nance leases 20 218 450
Long-term provisions 22 1,836 3,625
40,896 44,151
Net assets 22,619 17,961
Equity
Share capital 23 828 828
Share premium account 24 3,255 3,207
Equity reserve 25 859 155
Hedging and translation reserves 26 381 202
Retained earnings 27 17,296 13,569
Equity attributable to shareholders of the parent 28 22,619 17,961
Consolidated balance sheet
At 31 December 2006
The ﬁ nancial statements were approved by the Board of directors and authorised for issue on 26 February 2007. They were signed on its behalf by:
Tony Osbaldiston 
(Finance director) 33 Raymarine plc Annual Report 2006 
Note
2006
£’000
2005
£’000
29 10,408
656
(4,245)
(7,858)
(11,447)
(6,458)
48
3,000 –
(2,000)
(399)
(5,809)
(6,848)
2,042
(161)
(4,967)
43,632
1
Net debt is calculated as cash less bank loans and obligations under ﬁ nance leases. It does not include ﬁ nancial assets or ﬁ nancial liabilities.
Consolidated cash ﬂ ow statement
Year ended 31 December 2006
17,630
465
(3,438)
(3,627)
(6,600)
(1,656)
42
(15,174)
(410)
(17,198)
(6,168)
8,117
93
2,042
38,393
Net cash from operating activities
Investing activities
Proceeds on disposal of property, plant and equipment
Purchases of property, plant and equipment
Expenditure on product development
Net cash used in investing activities
Financing activities
Dividends paid
Net proceeds from issue of ordinary share capital
Proceeds from borrowings
Repayments of borrowings
Repayments of obligations under ﬁ nance leases
Net cash used in ﬁ nancing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Effect of foreign exchange rate changes
Cash and cash equivalents and bank overdrafts at end of year
Net debt
1 Raymarine plc Annual Report 2006 34
Notes to the ﬁ nancial statements
Year ended 31 December 2006
1. General information
Raymarine plc is a company incorporated in 
the United Kingdom under the Companies Act 
1985. The address of the registered ofﬁ ce is 
given on page 67. The nature of the Group’s 
operations and its principal activities are set 
out in Note 4 and in the Directors’ report on 
pages 26 to 27.
These ﬁ nancial statements are presented in 
Pounds Sterling because that is the currency 
of the primary economic environment in which 
the Group operates. Foreign operations are 
included in accordance with the policies set 
out in Note 2.
At the date of authorisation of these ﬁ nancial 
statements, the following Standards and 
Interpretations which have not been applied 
in these ﬁ nancial statements were in issue but 
not yet effective. 
• IFRS 7 Financial instruments: Disclosures; 
and the related amendment to IAS 1 on 
capital disclosures
• IFRIC 4 Determining whether an 
arrangement contains a lease
• IFRIC 5 Right to interests arising from 
decommissioning, restoration and 
environmental rehabilitation funds
• IFRIC 7 Applying the restatement approach 
under IAS 29 Financial reporting in 
hyperinﬂ ationary economies
• IFRIC 8 Scope of IFRS 2
• IFRIC 9 Reassessment of embedded 
derivatives
• IFRIC 10 Interim reporting and impairments
• IFRIC 11 IFRS 2 – Group and treasury share 
transactions
The directors anticipate that the adoption of 
these Standards and Interpretations in future 
periods will have no material impact on the 
ﬁ nancial statements of the Group except for 
the adoption of IFRS 7 and the amendment 
to IAS 1 which introduce new disclosures of 
information about ﬁ nancial instruments and 
capital management. The impact of these 
changes to the Group is that additional 
disclosures will be required concerning the 
sensitivity analysis to market risk and the 
management of capital. These will be applied 
for the year ending 31 December 2007.
The EU Directive on Waste Electrical and 
Electronic Equipment (“WE&EE”) requires the 
Group to assume responsibility for proper 
disposal of such equipment, sold after 13 
August 2005, when it has become waste. 
The cost of verifying compliance of source 
components which are used in the Group’s 
products has been charged to the income 
statement as incurred, in particular where new 
sources have been switched to new low cost 
suppliers as part of the outsourcing project. 
In the UK the DTI is responsible for 
transposing the WE&EE Directive into UK law, 
working in partnership with the Devolved 
Administrations. A detailed paper on how the 
scheme will operate in the UK is expected in 
2007. No provision has been made in these 
accounts on the basis that potential future 
disposal costs are uncertain and likely to be 
immaterial.
2. Signiﬁ cant accounting policies
Basis of accounting
The ﬁ nancial statements have been prepared 
in accordance with International Financial 
Reporting Standards (IFRSs) adopted by the 
European Union and therefore the Group 
ﬁ nancial statements comply with Article 4 of 
the EU IAS Regulation.
The ﬁ nancial statements have been prepared 
on the historical cost basis, except for the 
revaluation of ﬁ nancial instruments. The 
principal accounting policies adopted are set 
out below.
Basis of consolidation
The consolidated ﬁ nancial statements 
incorporate the ﬁ nancial 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 ﬁ nancial and operating policies of an 
investee entity so as to obtain beneﬁ ts from 
its activities.
On acquisition, the assets, liabilities and 
contingent liabilities of a subsidiary are 
measured at their fair values at the date 
of acquisition. Any excess of the cost of 
acquisition over the fair values of the 
identiﬁ able net assets acquired is recognised 
as goodwill. Any deﬁ ciency of the cost of 
acquisition below the fair values of the 
identiﬁ able net assets acquired (i.e. discount 
on acquisition) is credited to proﬁ t and loss in 
the period of acquisition.
Where necessary, adjustments are made to the 
ﬁ nancial statements of subsidiaries to bring 
the accounting policies used into line with 
those used by the Group.
All intra-group transactions, balances, income 
and expenses are eliminated on consolidation.
Goodwill
Goodwill arising on consolidation represents 
the excess of the cost of acquisition over 
the Group’s interest in the fair value of 
the identiﬁ able assets and liabilities of a 
subsidiary, associate or jointly controlled entity 
at the date of acquisition.
Goodwill is recognised as an asset and 
reviewed for impairment at least annually. 
Any impairment is recognised immediately in 
proﬁ t or loss and is not subsequently reversed. 
Goodwill arising on acquisitions before the 
date of transition to IFRSs has been retained 
at the previous UK GAAP amounts subject to 
being tested for impairment at that date.
On disposal of a subsidiary, associate or jointly 
controlled entity, the attributable amount of 
goodwill is included in the determination of 
the proﬁ t or loss on disposal.
Revenue recognition
Revenue is measured at the fair value of 
the consideration received or receivable and 
represents amounts receivable for goods 
and services provided 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.
Other income
Interest income is accrued on a time basis, by 
reference to the principal outstanding and at 
the effective interest rate applicable, which 
is the rate that exactly discounts estimated 
future cash receipts through the expected 
life of the ﬁ nancial asset to that asset’s net 
carrying amount.
Dividend income from investments is 
recognised when the shareholders’ rights to 
receive payment have been established.
All other sundry income, including royalty 
income, is recognised in the period to which 
it relates. 35 Raymarine plc Annual Report 2006 
Leasing
Leases are classiﬁ ed as ﬁ nance leases 
whenever the terms of the lease transfer 
substantially all the risks and rewards of 
ownership to the lessee. All other leases are 
classiﬁ ed as operating leases. Assets held 
under ﬁ nance leases are recognised as assets 
of the Group at their fair value or, if lower, 
at the present value of the minimum lease 
payments, each determined at the inception 
of the lease. The corresponding liability to 
the lessor is included in the balance sheet as 
a ﬁ nance lease obligation. Lease payments 
are apportioned between ﬁ nance charges 
and reduction of the lease obligation so 
as to achieve a constant rate of interest 
on the remaining balance of the liability. 
Finance charges are charged directly against 
income, unless they are directly attributable 
to qualifying assets, in which case they are 
capitalised in accordance with the Group’s 
general policy on borrowing costs (see below).
Rentals payable under operating leases are 
charged to income on a straight-line basis 
over the term of the relevant lease. Beneﬁ ts 
received and receivable as an incentive to 
enter into an operating lease are also spread 
on a straight-line basis over the lease term.
Foreign currencies 
Transactions in functional currencies are 
recorded at the rates of exchange prevailing 
on the dates of the transactions. At each 
balance sheet date, monetary assets and 
liabilities that are denominated in foreign 
currencies are retranslated at the rates 
prevailing on the balance sheet date. Non-
monetary assets and liabilities carried at 
fair value that are denominated in foreign 
currencies are translated at the rates 
prevailing at the date when the fair value 
was determined. Gains and losses arising on 
retranslation are included in net proﬁ t or loss 
for the period, except for exchange differences 
arising on non-monetary assets and liabilities 
where the changes in fair value are recognised 
directly in equity.
In order to hedge its exposure to certain 
foreign exchange risks, the Group enters 
into forward contracts and options (see 
below for details of the Group’s accounting 
policies in respect of such derivative ﬁ nancial 
instruments). 
On consolidation, the assets and liabilities of 
the Group’s overseas operations are translated 
at exchange rates prevailing on the balance 
sheet date. Income and expense items are 
translated at the average exchange rates for 
the period unless exchange rates ﬂ uctuate 
signiﬁ cantly. Exchange differences arising, if 
any, are classiﬁ ed as equity and transferred to 
the Group’s translation reserve per Note 26.
Operating proﬁ t
Operating proﬁ t comprises proﬁ t from 
operations and is stated after charging 
restructuring costs but before ﬁ nance income 
and ﬁ nance costs.
Retirement beneﬁ t costs 
Payments to deﬁ ned contribution retirement 
beneﬁ t schemes are charged as an expense 
as they fall due. Payments made to state-
managed retirement beneﬁ t schemes are dealt 
with as payments to deﬁ ned contribution 
schemes where the Group’s obligations under 
the schemes are equivalent to those arising 
in a deﬁ ned contribution retirement beneﬁ t 
scheme.
Taxation
The tax expense represents the sum of the tax 
currently payable and deferred tax.
The tax currently payable is based on taxable 
proﬁ t for the year. Taxable proﬁ t differs from 
net proﬁ t as reported in the income statement 
because it excludes items of income or 
expense that are taxable or deductible in 
other years and it further excludes items that 
are never taxable or deductible. The Group’s 
liability for current tax is calculated using tax 
rates that have been enacted or substantively 
enacted by the balance sheet date.
Deferred tax is the tax expected to be payable 
or recoverable on differences between the 
carrying amounts of assets and liabilities in the 
ﬁ nancial statements and the corresponding 
tax bases used in the computation of taxable 
proﬁ t, 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 proﬁ ts will be available against 
which deductible temporary differences can 
be utilised. Such assets and liabilities are not 
recognised if the temporary difference arises 
from goodwill or from the initial recognition 
(other than in a business combination) of 
other assets and liabilities in a transaction 
that affects neither the tax proﬁ t nor the 
accounting proﬁ t.
Deferred tax liabilities are recognised for 
taxable temporary differences arising on 
investments in subsidiaries, 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 sufﬁ cient taxable proﬁ ts 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 a 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
Fixtures and equipment are stated at cost less 
accumulated depreciation and any recognised 
impairment loss.
Depreciation is charged so as to write off the 
cost or valuation of assets, other than land 
and properties under construction, over their 
estimated useful lives, using the straight-line 
method, on the following basis:
Leasehold land & buildings Life of lease
Plant and machinery 7 years
Furniture, ﬁ xtures and ﬁ ttings 7 years
Tools and equipment 4 years
Non-recurring engineering 4 years
Boats 10 years
Computer equipment & software 3 years
Technology licences 4-5 years Raymarine plc Annual Report 2006 36
Assets held under ﬁ nance leases are 
depreciated over their expected useful lives 
on the same basis as owned assets or, where 
shorter, over the term of the relevant lease.
The gain or loss arising on the disposal or 
retirement of an asset is determined as the 
difference between the sales proceeds and the 
carrying amount of the asset and is recognised 
in income.
Assets in the course of construction represents 
costs directly associated with the construction 
by the Group of test equipment. These assets 
are not depreciated until they are brought into 
use.
Internally-generated intangible 
assets – research and development 
expenditure
Expenditure on research activities is recognised 
as an expense in the period in which it is 
incurred.
Development expenditure, where it meets 
certain criteria (given below), is capitalised 
and amortised on a straight-line basis over its 
useful life which is estimated to be three years. 
Asset lives are subject to regular review and an 
impairment exercise is carried out at least once 
a year. Where no internally-generated intangible 
asset can be recognised, development 
expenditure is expensed in the period in which 
it is incurred.
An asset is recognised only if all of the 
following conditions are met:
• the product is technically feasible and 
marketable;
• the Company has adequate resources to 
complete the development of the product;
• the development cost of the asset can be 
measured reliably; and 
• it is probable that the asset created will 
generate future economic beneﬁ ts.
Patents and trademarks
Patents and trademarks are measured initially 
at purchase cost and are amortised on a 
straight-line basis over their estimated useful 
lives which is determined to be ten years. 
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 ﬂ ows 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 indeﬁ nite 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 ﬂ ows 
are discounted to their present value using 
a pre-tax discount rate that reﬂ ects current 
market assessments of the time value of money 
and the risks speciﬁ c to the asset for which the 
estimates of future cash ﬂ ows 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.
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 ﬁ rst in ﬁ rst out (FIFO) 
basis. 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 ﬁ nancial 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. 
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 
classiﬁ ed 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.
Bank 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 
accruals basis to the proﬁ t and loss account 
using effective interest method 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.
Trade payables
Trade payables are not interest-bearing and are 
stated at their nominal value.
Derivative ﬁ nancial instruments and 
hedge accounting
The Group’s activities expose it primarily to the 
ﬁ nancial risks of changes in foreign currency 
exchange rates and interest rates. The Group 
uses foreign exchange forward contracts to 
hedge these exposures. The Group does not use 
derivative ﬁ nancial instruments for speculative 
purposes.
The use of ﬁ nancial derivatives is governed by 
the Group’s policies approved by the Board of 
directors, which provide written principles on 
the use of ﬁ nancial derivatives. The purpose 
for which a derivative is used is identiﬁ ed at 
inception. To qualify for hedge accounting, the 
contract must be in accordance with established 
guidelines which require that the hedging 
relationship is documented, ensure it is highly 
effective in achieving its objective, and require  37 Raymarine plc Annual Report 2006 
that its effectiveness can be reliably measured 
throughout its duration/term.
Changes in the fair value of derivative ﬁ nancial 
instruments that are designated and effective 
as hedges of future cash ﬂ ows are recognised 
directly in equity and the ineffective portion 
is recognised immediately in the income 
statement. If the cash ﬂ ow hedge of a ﬁ rm 
commitment or forecasted transaction results in 
the recognition of an asset or a liability, then, at 
the time the asset or liability is recognised, the 
associated gains or losses on the derivative that 
had previously been recognised in equity are 
included in the initial measurement of the asset 
or liability. For hedges that do not result in the 
recognition of an asset or a liability, amounts 
deferred in equity are recognised in the income 
statement in the same period in which the 
hedged item affects net proﬁ t or loss.
For an effective hedge of an exposure to 
changes in the fair value, the hedged item is 
adjusted for changes in fair value attributable to 
the risk being hedged with the corresponding 
entry in proﬁ t or loss. Gains or losses from re-
measuring the derivative, or for non-derivatives 
the foreign currency component of its carrying 
amount, are recognised in proﬁ t or loss.
Changes in the fair value of derivative ﬁ nancial 
instruments that do not qualify for hedge 
accounting are recognised in the income 
statement as they arise. 
Hedge accounting is discontinued when 
the hedging instrument expires or is sold, 
terminated, or exercised, or no longer 
qualiﬁ es for hedge accounting. At that time, 
any cumulative gain or loss on the hedging 
instrument recognised in equity is retained in 
equity until the forecasted transaction occurs. 
If a hedged transaction is no longer expected 
to occur, the net cumulative gain or loss 
recognised in equity is transferred to net proﬁ t 
or loss for the period.
Provisions
Provisions for warranty costs are recognised 
at the date of sale of the relevant products, at 
the directors’ best estimate of the expenditure 
required to settle the Group’s liability. Provisions 
for restructuring costs are recognised when 
the Group has a detailed formal plan for the 
restructuring that has been communicated to 
affected parties.
Share-based payments
The Group has applied the requirements of IFRS 
2 Share-based payments. In accordance with 
the transitional provisions, IFRS 2 has been 
applied to all grants of equity instruments after 
7 November 2002 that were unvested as of 
1 January 2005.
The Group issues equity-settled share-based 
payments to certain employees. Equity-settled 
share-based payments are measured at fair 
value 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. Fair value is measured by 
use of a stochastic 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.
Restructuring costs
Costs are treated as restructuring costs when 
they are associated with normal activities, 
are of a non-recurring nature and are of an 
exceptional magnitude that if they were not 
shown separately the accounts would not 
present a true and fair view. This includes costs 
incurred in relation to the outsourcing of all UK 
manufactured Raymarine products.
Critical accounting judgements and 
key sources of estimation uncertainty
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 signiﬁ cant effect on the 
amounts recognised in the ﬁ nancial statements. 
We regularly review these estimates and update 
them when required.
Warranty reserve
Determination of the warranty provision is 
based on historic failure rates and warranty 
return periods. The latter is a function of the 
warranty given, up to three years from the point 
of sale to the end customer, and the period 
products are within the distribution channel.
Capitalisation of research and 
development 
Capitalisation of research and development 
expenditure is a requirement of IAS 38. All 
capitalised and ongoing projects are reviewed 
regularly to ensure they meet the criteria for 
capitalisation.
Revenue assumptions are made for new 
products based on our market knowledge, 
historic sales and competition. For projects to 
be authorised they must achieve a high internal 
rate of return. Research and development 
expenditure is incurred up front and capitalised 
before any revenue has been earned from 
them. Actual revenue will vary from the original 
estimates, however due to the high internal 
rates of return assumed, any risk of impairment 
are considered to be minimal. 
Research and development expenditure is 
amortised over three years, our best estimate 
of the useful life of the projects, the period over 
which the assets will generate revenue. 
Goodwill
The carrying value of goodwill at the year 
end is £30.2m (2005: £31.2m). An annual 
impairment review is required under IFRS 3 
‘Business combinations’ involving judgement of 
the future cash ﬂ ows for cash-generating units. 
Management prepare such cash ﬂ ow forecasts 
derived from the most recent budgets approved 
by the Board for the next three years. Further 
details of the other assumptions used are given 
above.
Taxation
In arriving at our tax obligations we make 
judgements on appropriate tax law within the 
relevant tax jurisdictions that we have a taxable 
presence. We seek professional tax advice, as 
appropriate, before making judgements on tax 
matters. 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 proﬁ ts 
will be available against which deductible 
temporary differences can be utilised. The 
carrying value of deferred tax assets is reviewed 
at each balance sheet date and reduced to 
the extent that it is no longer probable that 
sufﬁ cient taxable proﬁ ts will be available to 
allow all or part of the asset to be recovered. Raymarine plc Annual Report 2006 38
UK 
2006
£’000
UK
2005
£’000
America
2006
£’000
America
2005
£’000
Total
2006
£’000
Total
2005
£’000
Revenue
Total sales 115,590 104,580 69,727 63,037
Inter-segment sales (48,618) (45,474) (209) (292)
Sales to third parties 66,972 59,106 69,518 62,745 136,490 121,851
2006
£’000
2005
£’000
Sale of goods 136,119 121,725
Royalty income 371 126
136,490 121,851
Investment income 529 217
Other income 43 79
137,062 122,147
For management purposes, the Group currently has two geographical areas of operation – United Kingdom (UK) and America. These geographical areas 
are the basis on which the Group reports its primary segment information. Segment information determined by origin is presented below. 
4. Business and geographical segments
Geographical segments
Inter-segment sales are charged at prevailing market prices.
3. Revenue
An analysis of the Group’s revenue is as follows: 39 Raymarine plc Annual Report 2006 
UK 
2006
£’000
UK
2005
£’000
America
2006
£’000
America
2005
£’000
Elim
2006
£’000
Elim
2005
£’000
Total
2006
£’000
Total
2005
£’000
Operating proﬁ t before 
restructuring costs
24,741 20,439 2,191 2,071 (3,013) (845) 23,919 21,665
   Restructuring and non-recurring costs (7,823) (10,588)
Operating proﬁ t 16,096 11,077
 Investment income 529 217
 Finance costs (2,534) (3,232)
Proﬁ t before tax 14,091 8,062
 Tax (3,754) 305
Proﬁ t after tax 10,337 8,367
UK 
2006
£’000
UK
2005
£’000
America
2006
£’000
America
2005
£’000
Elim
2006
£’000
Elim
2005
£’000
Total
2006
£’000
Total
2005
£’000
Capital additions 11,872 7,041 460 687 – – 12,332 7,728
Depreciation and amortisation 6,875 6,276 313 298 – – 7,188 6,574
Impairment (reversals) / losses recognised 
in income
(1,061) 1,647 – – – – (1,061) 1,647
Balance sheet
Assets
Segment assets 77,629 68,703 28,939 23,867 (13,320) (5,747) 93,248 86,823
Unallocated assets 
1
28 397
Total consolidated assets 93,276 87,220
Liabilities
Segment liabilities (26,454) (24,168) (13,356) (5,598) 10,834 3,874 (28,976) (25,892)
Unallocated liabilities 
2
(41,681) (43,367)
Total consolidated liabilities (70,657) (69,259)
1
 Unallocated assets includes ﬁ nancial assets.
2
 Unallocated liabilities includes bank borrowings, ﬁ nance lease liabilities, ﬁ nancial liabilities and taxation liabilities.
Business segment
The Group’s revenue is derived from one class of business, that of marine electronics. It is not possible to disaggregate the products beyond the core 
marine electronics products as they all operate through the same markets and are considered to have the same risks and rewards associated with them.
4. Business and geographical segments (continued)
Geographical segments (continued)
Other information Raymarine plc Annual Report 2006 40
2006
£’000
2005
£’000
Redundancy costs 530 2,316
Property costs (40) 1,094
Consultancy and other staff related costs 4,057 2,468
(Proﬁ t) / loss on disposal of ﬁ xed assets (711) 3,666
Transfer costs 3,636 978
WE&EE costs 351 387
7,823 10,909
2006
£’000
2005
£’000
Listing on the London Stock Exchange – (321)
The 2005 credit received was in respect of a VAT refund on ﬂ otation costs incurred in 2004. 
In July 2005, the Group agreed to outsource the majority of its manufacturing function to Flextronics, a provider of electronics manufacturing services. 
Under the agreement, Flextronics will provide vertically integrated manufacturing services to the Group, initially through its facility in western Hungary. 
To the extent that workers can not be redeployed, termination terms have been agreed and the related costs, together with the expected costs of 
exiting properties which will become vacant as part of the restructuring, and costs of transferring stocks and assets to Hungary, have been included in 
the restructuring provision (Note 22). The process of transferring ﬁ xed assets to Hungary has now been completed and the majority of ﬁ xed assets have 
been disposed of. This has led to a reversal in respect of the impairment originally set up of £747k. The balance of the charge comprises incremental 
costs incurred in the period which are associated with the project. The tax effect of the restructuring costs in 2006 was a credit of £2,316,000 (2005: 
£5,553,000), as explained further in Note 10. Production has now ceased in the UK, ending the ﬁ rst phase of the project. The second phase which 
relates to moving from Raymarine’s suppliers of raw materials and components to Flextronics’ suppliers is underway and will continue into 2007.
(b) Restructuring costs
5. (a) Administrative expenses – ﬂ otation and non-recurring costs 41 Raymarine plc Annual Report 2006 
2006
£’000
2005
£’000
Other income (Note 3) (43) (79)
Net foreign exchange gains (24) (3,369)
Research and development costs:
   Research and development costs expensed 4,779 4,813
   Amortisation and impairment of capitalised development costs 3,550 2,610
Warranty costs for the year 3,718 3,769
Warranty provision (release) / increase (1,177) 1,158
Amortisation of other intangible assets 725 725
Depreciation and other amounts written off property, plant and equipment:
   Owned 2,671 2,830
   Leased 401 409
Rentals payable under operating leases:
   Property 1,384 1,444
   Hire of other assets 290 181
Staff costs (Note 7) 25,598 25,207
Abortive acquisition costs 355 –
Cost of inventories recognised as an expense 58,580 51,090
Amounts written off inventories 39 836
Auditors’ remuneration for audit services (see below) 154 164
2006
£’000
2005
£’000
Fees payable to the Company’s auditors for the audit of the Company’s annual accounts 9 8
Fees payable to the Company’s auditors and their associates for other services to the Group
   The audit of the Company’s subsidiaries pursuant to legislation 113 102
   IFRS opening balance sheet and related audit work – 35
   Other assurance work 32 19
Total audit fees 154 164
Other services pursuant to legislation:
   Tax services related to:
      Compliance 114 42
      General advisory 104 104
      Restructuring 125 115
   Corporate ﬁ nance services 25 –
   Other services:
      IFRS implementation advice – 42
Total non-audit fees 368 303
6. Operating proﬁ t
Operating proﬁ t before restructuring costs is stated after charging or (crediting):
The analysis of auditors’ remuneration is as follows:
A description of the work of the Audit Committee is set out in the Corporate governance statement on page 16 and includes an explanation of how 
auditor objectivity and independence is safeguarded when non-audit services are provided by the auditors. Raymarine plc Annual Report 2006 42
2006
Number
2005
Number
Production and supply chain 201 280
Research and development 131 111
Technical support 84 82
Sales and marketing 65 74
Administration 58 54
539 601
2006
£’000
2005
£’000
Their aggregate remuneration comprised:
Wages and salaries 15,747 14,057
Redundancy 604 2,316
Social security costs 1,913 1,584
Other pension costs (Note 33) 364 357
Raymarine UK Limited costs 18,628 18,314
Raymarine Inc costs 6,970 6,893
25,598 25,207
2006
£’000
2005
£’000
Interest receivable 139 217
Foreign exchange gains 390 –
529 217
7. Staff costs
The average monthly number of employees (including Executive directors) was:
The average number of persons employed by the Group includes 133 (2005: 133) at Raymarine Inc., which leased its employees from ADP TotalSource. 
Pension contributions included above in the Raymarine Inc payroll costs were £393,000 (2005: £373,000).
The ﬁ gures above include a charge for redundancy provision of £530,000 (2005: £2,316,000), as detailed in Note 5b.
8. Finance income 43 Raymarine plc Annual Report 2006 
2006
£’000
2005
£’000
Current tax:
UK corporation tax:
   Current year 3,390 3,088
   Adjustment recognised in period for current tax of prior periods 37 (1,626)
Foreign tax:
   Current year 20 26
   Adjustment recognised in period for current tax of prior periods – (150)
Current tax charge for year 3,447 1,338
Deferred tax (Note 19):
   Current year 875 (466)
   Adjustment recognised in period for current tax of prior periods (568) (1,177)
(307) (1,643)
Total tax charge / (credit) 3,754 (305)
2006
£’000
2005
£’000
Interest payable on bank loans 2,505 2,541
Interest payable on ﬁ nance leases 29 50
Total borrowing costs 2,534 2,591
Foreign exchange losses – 641
2,534 3,232
9. Finance costs
10. Taxation
The adjusted effective rate (after adjusting proﬁ t before tax for restructuring costs of £7.8m (2005: £10.9m), ﬂ otation and other non-recurring costs of 
£nil (2005: £0.3m credit) and amortisation of other intangible ﬁ xed assets of £0.7m (2005: £0.7m)) is calculated at 26.8% (2005: 26.8%) for the year. 
The charge for the year has been reduced by £2.3m (2005: £5.5m) for a tax credit in respect of restructuring costs.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
On 22 November 2004, Raymarine Inc., a 100% subsidiary of Raymarine plc, was migrated to be resident in the United States. Under UK tax rules, 
there is a deemed disposal of the Company’s assets for UK tax purposes on the date of emigration from the UK which gives rise to a held-over 
chargeable gain. The gain would crystallise if Raymarine Inc. were to sell its chargeable asset (goodwill) before 22 November 2010 or cease to be a 
75% subsidiary of the Group at any time. The estimated tax charge that would arise is £4.4m. In accordance with IAS 12, no provision has been made 
for this. Raymarine plc Annual Report 2006 44
  2006 2005
£’000 % £’000 %
Proﬁ t before tax 14,091 8,062
Tax at the UK corporation tax rate of 30% (2005: 30%) 4,227 2,418
Tax effect of expenses that are not deductible in determining taxable proﬁ t 269 374
Prior year adjustments (531) (2,953)
Tax effect of utilisation of tax losses not previously recognised (235) (120)
Effect of different tax rates of subsidiaries operating in other jurisdictions 24 (24)
Tax charge / (credit) and effective tax rate for the year 3,754 26.6% (305) (3.8%)
2006
£’000
2005
£’000
Amounts recognised as distributions to equity holders in the period:
Interim dividend paid for the year ended 31 December 2005 of 2p per share – 1,656
Final dividend paid in the year for the year ended 31 December 2005 of 5p per share 4,140 –
Interim dividend paid in the year for the year ended 31 December 2006 of 2.8p per share 2,318 –
6,458 1,656
Proposed ﬁ nal dividend for the year ended 31 December 2006 of 5.95p (2005: 5p) per share 4,927 4,140
10. Taxation (continued)
The charge / (credit) for the year can be reconciled to the proﬁ t per the income statement as follows:
11. Dividends
The proposed ﬁ nal dividend is subject to approval by shareholders at the Annual General Meeting and accordingly has not been included as a liability in 
these ﬁ nancial statements. 45 Raymarine plc Annual Report 2006 
2006
£’000
2005
£’000
Earnings
Earnings for the purposes of basic earnings per share being net proﬁ t attributable to equity shareholders of the parent 10,337 8,367
Deduct: Tax credit re ﬂ otation matters / exceptional ﬂ otation costs – (315)
Add:     Exceptional restructuring costs (Note 5) net of tax 5,507 5,350
             Amortisation of other intangible assets (Note 13) 725 725
Earnings for the purposes of adjusted earnings per share 16,569 14,127
2006
Number
2005
Number
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per share 82,802,408 82,788,721
Effect of dilutive potential ordinary shares:
   Share options 64,950 4,192
   Long-term incentive plan 1,527,851 723,440
Weighted average number of ordinary shares for the purposes of diluted earnings per share 84,395,209 83,516,353
2006 2005
Basic EPS 12.5p 10.1p
Diluted EPS 12.2p 10.0p
2006 2005
Basic EPS 20.0p 17.1p
Diluted EPS 19.6p 16.9p
12. Earnings per share
EPS (pence)
Adjusted EPS (pence)
The calculation of the basic and diluted earnings per share is based on the following data: Raymarine plc Annual Report 2006 46
Goodwill
£’000
Development 
expenditure
£’000
Other
£’000
Total
£’000
Cost
At 1 January 2005 30,285 7,696 7,254 45,235
Exchange differences 889 – – 889
Additions – 3,627 – 3,627
At 1 January 2006 31,174 11,323 7,254 49,751
Exchange differences (1,007) – – (1,007)
Additions – 7,858 – 7,858
At 31 December 2006 30,167 19,181 7,254 56,602
Amortisation
At 1 January 2005 – 1,275 2,841 4,116
Charge for the year – 2,610 725 3,335
At 1 January 2006 – 3,885 3,566 7,451
Charge for the year – 3,391 725 4,116
At 31 December 2006 – 7,276 4,291 11,567
Impairment
At 1 January 2005 and 1 January 2006 ––––
Charge for the year – 159 – 159
At 31 December 2006 – 159 – 159
Net book value
At 31 December 2006 30,167 11,746 2,963 44,876
At 31 December 2005 31,174 7,438 3,688 42,300
13. Intangible ﬁ xed assets
Other intangible ﬁ xed assets comprises intellectual property (patents and licences). 47 Raymarine plc Annual Report 2006 
Short 
leasehold land 
and buildings
£’000
Plant and 
machinery
£’000
Fittings 
ﬁ xtures, tools 
and equipment
£’000
Assets in the 
course of 
construction
£’000
Total
£’000
Cost
At 1 January 2005
Exchange differences
Additions
Disposals and write-offs
At 1 January 2006
Exchange differences
Additions
Disposals and write-offs
Transfers
At 31 December 2006
Accumulated depreciation
At 1 January 2005
Exchange differences
Charge for the year
Disposals and write-offs
At 1 January 2006
Exchange differences
Charge for the period
Disposals and write-offs
At 31 December 2006
Impairment
At 1 January 2005
Impairment charge
At 1 January 2006
Impairment charge
Disposals
At 31 December 2006
Net book value
At 31 December 2006
At 31 December 2005
14. Property, plant and equipment
The carrying amount of the Group’s ﬁ xtures, ﬁ ttings, tools and equipment included £509,000 (2005: £816,000) in respect of assets held under ﬁ nance leases.
1,127
15
351
(75)
1,418
(28)
305
(14)
–
1,681
412
4
272
(63)
625
(8)
269
(12)
874
–
213
213
85
(213)
85
722
580
6,775
3
266
(258)
6,786
–
280
(4,179)
–
2,887
3,911
–
663
(256)
4,318
–
457
(2,928)
1,847
–
1,357
1,357
89
(1,194)
252
788
1,111
19,738
222
3,484
(4,787)
18,657
(271)
2,886
(4,589)
68
16,751
13,280
168
2,304
(2,624)
13,128
(186)
2,346
(4,091)
11,197
–
77
77
185
(172)
90
5,464
5,452
27,640
240
4,101
(5,120)
26,861
(299)
4,374
(8,782)
–
22,154
17,603
172
3,239
(2,943)
18,071
(194)
3,072
(7,031)
13,918
–
1,647
1,647
359
(1,579)
427
7,809
7,143
–
–
–
–
–
–
903
–
(68)
835
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
835
– Raymarine plc Annual Report 2006 48
2006
£’000
2005
£’000
Raw materials and consumables 1,430 4,587
Work-in-progress 148 2,581
Finished goods and goods for resale 15,271 11,488
16,849 18,656
2006
£’000
2005
£’000
Amounts receivable for the sale of goods 19,034 14,272
Other debtors 999 947
Prepayments and accrued income 1,613 1,463
21,646 16,682
15. Inventories
16. Other ﬁ nancial assets
Trade and other receivables
The average credit period taken on sales of goods in the UK is 58 days (2005: 58 days). In the US the credit period is 31 days (2005: 29 days). No 
interest is charged on the receivables from date of the invoice to payment. Amounts receivable for sale of goods of £271,000 (2005: £101,000) were 
fully impaired and mainly relate to distributors experiencing difﬁ cult economic situations. The directors consider that the carrying amount of trade and 
other receivables approximates their fair value.
Cash and cash equivalents
Cash and cash equivalents comprise cash held by the Group and short-term bank deposits with an original maturity of three months or less. The 
carrying amount of these assets approximates their fair value.
Credit risk
The Group’s principal ﬁ nancial assets are bank balances and cash and trade and other receivables, which represent the Group’s maximum exposure to 
credit risk in relation to ﬁ nancial assets.
The Group’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful 
receivables, estimated by the Group’s management based on prior experience and their assessment of the current economic environment.
The credit risk on liquid funds and derivative ﬁ nancial instruments is limited because the counterparties are banks with high credit-ratings assigned 
by international credit-rating agencies. The Group has no signiﬁ cant concentration of credit risk, with exposure spread over a large number of 
counterparties and customers.
Inventory of work-in-progress and raw material has been sold to the outsourcing partner as part of the outsourcing plan. Further inventory items are 
expected to be sold in 2007. 49 Raymarine plc Annual Report 2006 
2006
£’000
2005
£’000
Current
Bank overdrafts 7,035 –
Non-current
Bank loans 38,388 39,965
Unamortised debt costs (232) (347)
38,156 39,618
45,191 39,618
The borrowings are repayable as follows:
On demand or within one year 7,035 –
In the third to ﬁ fth years inclusive 38,156 39,618
45,191 39,618
Sterling
£’000
US Dollars
£’000
Total
£’000
Analysis of borrowings by currency:
31 December 2006
Bank overdrafts 2,988 4,047 7,035
Bank loans 18,969 19,187 38,156
21,957 23,234 45,191
31 December 2005
Bank loans 17,958 21,660 39,618
2006
%
2005
%
The weighted average interest rates paid were as follows:
Bank overdrafts 6.3% –
Bank loans 5.5% 5.1%
2006
£’000
2005
£’000
Bank overdrafts 7,035 –
Bank loans 38,388 39,965
45,423 39,965
17. Bank loans and overdrafts
Bank loans of £38.4m (2005: £40.0m) relate to a facility under a $135,000,000 syndicated revolving credit arrangement set up on 6 December 2004. 
The loan carried a charge of 50 basis points over Dollar and Sterling LIBOR (2005: 70 basis points) at 31 December 2006.
The directors estimate the fair value of the Group’s borrowings as follows:
Bank overdrafts are repayable on demand. The average effective interest rate on bank overdrafts approximates 6.3% (2005: nil) per annum and is 
determined based on 1 per cent plus prime rate.
At 31 December 2006, the Group had available £25.5m (2005: £40.1m) of undrawn committed borrowing facilities in respect of which all conditions 
precedent had been met. Raymarine plc Annual Report 2006 50
2006
£’000
2005
£’000
Forward foreign exchange contracts – 1,849
Accelerated 
tax 
depreciation
£’000
Deferred 
development 
costs 
£’000
Other
£’000
Total
£’000
At 1 January 2005 732 2,270 (956) 2,046
(Credit) / charge to income (1,662) (43) 62 (1,643)
Charge to equity – – 113 113
Exchange differences 17 – (91) (74)
At 1 January 2006 (913) 2,227 (872) 442
Charge / (credit) 321 1,293 (1,307) 307
Charge to equity – – (346) (346)
Exchange differences (38) – 101 63
At 31 December 2006 (630) 3,520 (2,424) 466
2006
£’000
2005
£’000
Deferred tax liabilities 786 1,067
Deferred tax assets (320) (625)
466 442
18. Derivative ﬁ nancial instruments
Currency derivatives
The Group utilises currency derivatives to hedge signiﬁ cant future transactions and cash ﬂ ows. There were no foreign currency forward contracts in place 
at 31 December 2006 (2005: 2). The instruments in 2005 were denominated in US Dollars, the currency of the Group’s principal foreign market. 
The total notional amount of outstanding forward foreign exchange contracts that the Group has committed to at the end of each year are shown 
below:
The arrangements were designed to address signiﬁ cant exchange exposure in the ﬁ rst quarter of 2006. The foreign exchange exposure of the Group is 
monitored on an ongoing basis and the requirement for future derivative ﬁ nancial instruments is kept under review. 
At 31 December 2006, the fair value of the Group’s currency derivatives is £nil (2005: £0.4m). The 2005 amounts were based on quoted market values 
of equivalent instruments at the balance sheet date. The fair value of currency derivatives that were designated and effective as cash ﬂ ow hedges, 
amounting to £0.4m in 2005, were deferred in equity.
Included in other operating income is £0.4m (2005: £2.8m) which has been transferred from reserves in respect of foreign currency forward contracts 
that have matured during the period.
Hedge of net investment in foreign entity
The Group has US Dollar denominated borrowings which it has designated as a hedge of the net investment in its subsidiary in the US. The fair value of 
the Dollar borrowings hedging the net investment as at 31 December 2006 was £3.1m (2005: £3.6m). Foreign exchange gains of £0.3m (2005: loss of 
£0.2m) on translation of the borrowings into Pounds Sterling have been recognised in the Statement of recognised income and expense.
19. Deferred tax
The following are the major deferred tax liabilities and assets 
recognised by the Group and movements thereon during the current 
and prior reporting period.
Certain deferred tax assets and liabilities have been offset. The following is the analysis of the deferred tax 
balances (after offset) for ﬁ nancial reporting purposes: 51 Raymarine plc Annual Report 2006 
Minimum lease payments Present value of lease payments
2006
£’000
2005
£’000
2006
£’000
2005
£’000
Amounts payable under ﬁ nance leases:
Within one year 313 394 291 367
In the second to ﬁ fth years inclusive 242 495 218 450
555 889 509 817
Less: future ﬁ nance charges (46) (72) N/A N/A
Present value of lease obligations 509 817
Less:
Amount due for settlement within 12 months (shown under current liabilities) (291) (367)
Amount due for settlement after 12 months 218 450
2006
£’000
2005
£’000
Current liabilities
Trade creditors 8,156 10,378
Accruals and deferred income 7,484 6,169
15,640 16,547
Non-current liabilities
Trade creditors 192 –
15,832 16,547
20. Obligations under ﬁ nance leases
21. Other ﬁ nancial liabilities
Trade and other payables
Trade creditors comprise amounts outstanding for trade purchases and on-going costs. The average credit period taken for trade purchases is 32 days 
(2005: 38 days).
The directors consider that the carrying amount of trade and other payables approximates to their fair value.
Leases are classiﬁ ed as ﬁ nance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. The 
average lease term, weighted by asset cost, is 42 months (2005: 41 months).
The effective interest rate, weighted by asset cost, is 2.9% (2005: 5.5%).
The Group has ﬁ nance leases denominated in Pounds Sterling and US Dollars. The fair value of the Group’s lease obligations approximates their carrying 
amount. The Group’s obligations under ﬁ nance leases are secured by the lessors’ charges over the leased assets. Raymarine plc Annual Report 2006 52
Warranty 
provision
£’000
Restructuring 
provision
£’000
Total
£’000
At 1 January 2006 5,738 3,607 9,345
Exchange difference (57) – (57)
Additional provision in the year 3,773 – 3,773
Write-back in the year (1,280) (187) (1,467)
Utilisation of provision (3,670) (1,815) (5,485)
At 31 December 2006 4,504 1,605 6,109
Included in current liabilities 4,273
Included in non-current liabilities 1,836
6,109
2006
£’000
2005
£’000
Authorised:
Equity: 1,000,000,000 (2005: 1,000,000,000) ordinary shares of £0.01 each 10,000 10,000
Issued and fully paid:
Equity: 82,803,530 (2005: 82,790,317) ordinary shares of £0.01 each 828 828
Number £’000
At the beginning of the year 82,790,317 828
Allotment of shares to share incentive plan 13,213 –
Balance at 31 December 2006 82,803,530 828
22. Provisions
The warranty provision reﬂ ects the best estimate of future claims under product warranties, which are given to the end user for up to three years from 
date of sale.
The restructuring provision relates to the implementation of outsourcing manufacturing to Flextronics in Hungary, which began in 2005. The provision 
reﬂ ects expected severance payments and retention bonuses totalling £0.7m that are anticipated to be paid in 2007. The remaining £0.9m reﬂ ects 
anticipated property costs associated with cessation of manufacturing at our Anchorage Park facility.
23. Share capital
Changes in the issued share capital during the year were as follows:
The Company has one class of ordinary shares which carry no right to ﬁ xed income. 53 Raymarine plc Annual Report 2006 
£’000
Balance at 1 January 2006 3,207
Premium arising on issue of equity shares 48
Balance at 31 December 2006 3,255
£’000
Balance at 1 January 2006 155
Vested awards under the LTIP 152
Awards under the LTIP 313
Share option plan 7
Deferred tax on the above items 232
Balance at 31 December 2006 859
Hedging 
reserve
£’000
Translation 
reserve
£’000
Total
£’000
Balance at 1 January 2005 – (413) (413)
Exchange differences on translation of overseas operations – 348 348
Transfer of the initial carrying amount of hedged items on cash ﬂ ow hedges 3,828 – 3,828
Transfer to income on cash ﬂ ow hedges (2,779) – (2,779)
Foreign exchange losses on hedging derivatives maturing during the year (668) – (668)
Related deferred tax on above items (114) – (114)
Balance at 1 January 2006 267 (65) 202
Exchange differences on translation of foreign currency operations – 446 446
Transfer to income on cash ﬂ ow hedges (399) – (399)
Foreign exchange gains on hedging derivatives maturing during the year 18 – 18
Related deferred tax on above items 114 – 114
Balance at 31 December 2006 – 381 381
24. Share premium account
25. Equity reserve
During the year the Group entered into a second LTIP for some of its staff. Both this plan and the plan entered into in 2005 are being accounted for as 
equity settled schemes and operate over three years with any award being linked to performance related targets which reﬂ ect the Group’s performance 
during the period. The maximum award under the schemes are 609,335 shares and 1,068,763 shares respectively (Note 32). An additional charge to 
the income statement of £270,000 arises in the year in respect of National Insurance contributions accrued.
26. Hedging and translation reserves
The hedging reserve reﬂ ects the fair value of the unrealised exchange gains and losses on unmatured foreign exchange contracts at the year end. The 
cumulative currency translation adjustment for the Group is held in the translation reserve and both reserves are considered to be undistributable. Raymarine plc Annual Report 2006 54
£’000
Balance at 1 January 2005 6,933
Net proﬁ t for the year 8,367
Dividends paid (1,656)
Other adjustments (75)
Balance at 1 January 2006 13,569
Net proﬁ t for the year 10,337
Dividends paid (6,458)
Vested awards under the LTIP (152)
Balance at 31 December 2006 17,296
2006
£’000
2005
£’000
Total recognised income and expense for the year 10,364 8,907
Dividends paid (6,458) (1,656)
Increase in equity reserve 704 155
Increase in share capital and premium 48 41
4,658 7,447
Shareholders’ equity brought forward 17,961 10,514
Shareholders’ equity carried forward 22,619 17,961
27. Retained earnings
28. Consolidated statement of changes in equity 55 Raymarine plc Annual Report 2006 
2006
£’000
2005
£’000
Operating proﬁ t 16,096 11,077
Adjustments for:
   Foreign exchange 823 69
   Depreciation of property, plant and equipment 3,072 3,239
   Impairment (reversal) / charge on ﬁ xtures and equipment (93) 1,647
   Amortisation of impairment of intangible assets 4,275 3,335
   (Proﬁ t) / loss on disposal of property, plant and equipment (334) 2,017
   (Decrease) / increase in provisions (3,179) 4,711
Operating cash ﬂ ows before movements in working capital 20,660 26,095
   Decrease in inventories 802 994
   Increase in receivables (5,958) (809)
   Increase / (decrease) in payables 209 (4,457)
Cash generated by operations 15,713 21,823
Interest received 138 216
Interest paid (2,434) (3,969)
Foreign exchange 392 (641)
Tax (paid) / received (3,401) 201
Net cash from operating activities 10,408 17,630
Reconciliation of net debt Reconciliation of net debt
1 January
2006
Foreign 
exchange Cash ﬂ ow Non-cash
31 December 
2006
Cash in hand and at bank 2,042 (161) 187 – 2,068
Overdrafts – – (7,035) – (7,035)
2,042 (161) (6,848) – (4,967)
Debt due after 1 year (39,618) 2,577 (1,000) (115) (38,156)
Finance leases (817) 38 399 (129) (509)
Net debt (38,393) 2,454 (7,449) (244) (43,632)
29. Notes to the cash ﬂ ow statement
Additions to ﬁ xtures and equipment during the year amounting to £0.1m (2005: £0.7m) were ﬁ nanced by new ﬁ nance leases.
 
Cash and cash equivalents (which are presented as a single class of assets on the face of the balance sheet) comprise cash at bank and other short-
term highly liquid investments with a maturity of three months or less, less the bank overdraft.
30. Contingent liabilities
Upon signature of the outsourcing agreement with Flextronics, Raymarine received proceeds for the sale of existing production and test equipment 
totalling £1.4m, the underlying proceeds being a Dollar denominated payment of $2.5m. Under the terms of the agreement, upon termination 
Raymarine becomes liable for a pro-rata repayment of the £1.4m on return of the assets sold. At the balance sheet date 17 months of the 60 month 
initial period had expired leaving a contingent liability of £0.9m. Raymarine plc Annual Report 2006 56
LTIP Share options
Maximum 
number of 
shares
Weighted 
average fair 
value per 
shares (£)
Number of 
shares
Weighted 
average 
exercise price 
(£)
Outstanding at beginning of period 1,068,763 1.14 150,000 2.27
Granted during the period 609,335 2.50 300,000 4.47
Outstanding at the end of the period 1,678,098 1.63 450,000 3.74
LTIP Share options
2006 2005
2006
2005
Tranche 1 Tranche 2
Weighted average share price N/A N/A £4.49 £4.49 £2.45
Weighted average exercise price N/A N/A £4.47 £4.47 £2.27
Weighted average fair value per share £2.50 £1.14 N/A N/A N/A
Expected volatility 28.4% 26% 30% 30% 25%
Expected life 3 years 3 years 5 years 6 years 5 years
Risk-free rate 4.5% 4.5% 5.0% 4.9% 4.27%
Expected dividend yield 2% 3% 1.76% 1.76% 2.64%
Grant date N/A N/A 21/12/06 21/12/06 15/08/05
2006
£’000
2005
£’000
Within one year 1,704 1,703
In the second to ﬁ fth years inclusive 4,549 4,732
After ﬁ ve years 1,093 1,974
7,346 8,409
32. Share based payments
The options outstanding at 31 December 2006 had a weighted average exercise price of £3.74 and a weighted average remaining contractual life of 
5 years.
Operating lease payments represent rentals payable by the Group for the entire duration of the lease for certain of its cars and properties. Average lease 
terms, at ﬁ xed rates, for cars and vending equipment are 39 months and 32 months respectively. The average lease term for properties is 107 months. 
Operating lease payments for some of the properties are subject to a rent review.
31. Operating lease arrangements
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:
Expected volatility was determined by calculating the historical volatility of the Group’s share price from the date of listing, 6 December 2004, to the 
date of the grant. The expected life used in the model is management’s best estimate allowing for the effects of non-transferability, exercise restrictions, 
and behavioural considerations.
The inputs into the Black-Scholes model are as follows: 57 Raymarine plc Annual Report 2006 
32. Share based payments (continued)
LTIP
During the year the Group entered into a second LTIP for some of its staff. Both this plan and the plan entered into in 2005 are being accounted for as 
equity settled schemes and operate over three years with any award being linked to performance related targets which reﬂ ect the Group’s performance 
during the period. The maximum award under the schemes is 609,335 shares and 1,068,763 shares respectively. A charge to the income statement of 
£791k was made during the period.
Equity-settled share option plan
The Company has issued 450,000 share options to a single member of senior management. The options are exercisable at a price equal to the average 
of the quoted market price of the Company’s shares on the three days prior to the date of each of the grants. There have been three separate grants. 
The vesting period and grant dates are given in the table opposite. If the options remain unexercised after a period of 10 years from the date of the 
grant, the options expire. Options are forfeited if the employee leaves the Group before the options vest. The charge to the income statement in respect 
of the option is £28k.
33. Retirement beneﬁ t schemes
Deﬁ ned contribution scheme
The Group operates a deﬁ ned contribution pension scheme for Raymarine UK Limited. The assets of the scheme are held separately from those of 
the Group in funds under the control of trustees. Where there are employees who leave the scheme prior to vesting fully in the contributions, the 
contributions payable by the Group are reduced by the amount of forfeited contributions.
The cost charged to income in respect of this pension scheme, of £364,000 (2005: £357,000), represents contributions payable to the scheme by the 
Group at rates speciﬁ ed in the rules of the plan. As at 31 December 2006, contributions of £65,000 (2005: £56,000) due in respect of the current 
reporting period had not been paid over to the scheme and are included in creditors.
The Group leased its Raymarine Inc. employees from ADP TotalSource during the entire year of 2005. ADP TotalSource operates a deﬁ ned contribution 
scheme. 
The cost charged to income in respect of the scheme operated by ADP , of £393,000 (2005: £373,000), represents contributions payable to various 
funds by the Group at rates speciﬁ ed in the rules of the plan. As at 31 December 2006, contributions of £64,000 (2005: £74,000) due in respect of the 
current reporting period had not been paid over to the scheme and are included in creditors.
34. Events after the balance sheet date
There were no signiﬁ cant events after the balance sheet date.
35. Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this 
note. 
Remuneration of key management 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 
speciﬁ ed in IAS 24 Related Party Disclosures in the audited part of the Directors’ remuneration report on pages 20 to 23, along with further information 
about the remuneration of individual directors. Raymarine plc Annual Report 2006 58
We have audited the parent company ﬁ nancial statements of Raymarine plc for the year ended 31 December 2006 which comprise the Income 
statement, the Statement of recognised income and expense, the Balance sheet, the Cash ﬂ ow statement and the related Notes 36 to 50. These parent 
company ﬁ nancial statements have been prepared under the accounting policies set out therein.
We have reported separately on the Group ﬁ nancial statements of Raymarine plc for the year ended 31 December 2006 and on the information in the 
Directors’ remuneration report that is described as having been audited. 
This report is made solely to the Company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit work has been 
undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditors’ report and for no other 
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s 
members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual Report and the parent company ﬁ nancial 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 parent company ﬁ nancial 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 parent company ﬁ nancial statements give a true and fair view and whether the parent company 
ﬁ nancial statements have been 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 parent company ﬁ nancial statements. The information given in the Directors’ report 
includes that speciﬁ c information presented in the Financial review that is cross referred from the Business review section of the Directors’ report.
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 speciﬁ ed 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 parent company ﬁ nancial statements. We consider the implications for our report if we become aware of any apparent misstatements or 
material inconsistencies with the parent company ﬁ nancial 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 parent company ﬁ nancial statements. It also includes 
an assessment of the signiﬁ cant estimates and judgments made by the directors in the preparation of the parent company ﬁ nancial statements, and of 
whether the accounting policies are appropriate to the Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with 
sufﬁ cient evidence to give reasonable assurance that the parent company ﬁ nancial 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 parent 
company ﬁ nancial statements.
Opinion
In our opinion:
•  the parent company ﬁ nancial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union, of the state of the 
Company’s affairs as at 31 December 2006 and of its proﬁ t for the year then ended;
• the parent company ﬁ nancial statements have been properly prepared in accordance with the Companies Act 1985; and
• the information given in the Directors’ report is consistent with the parent company ﬁ nancial statements.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors 
Southampton, United Kingdom
26 February 2007
Independent auditors ʼ report to the members of Raymarine plc 59 Raymarine plc Annual Report 2006 
2006
£’000
2005
£’000
Note
Administrative expenses:
 – Other administrative expenses (606) (632)
 – Flotation and non-recurring costs – 26
Operating loss 37 (606) (606)
Finance income 39 13,305 7,591
Finance costs 40 – (244)
Proﬁ t before tax 12,699 6,741
Taxation 41 (179) 2,226
Proﬁ t for the year attributable to equity shareholders to the Company 48 12,520 8,967
2006
£’000
2005
£’000
Note
Transfers
Vested awards under the LTIP (152) –
Proﬁ t for the period 12,520 8,967
Total recognised income and expense for the year attributable to shareholders 
to the company
49 12,368 8,967
2006
£’000
2005
£’000
Note
Transfers
Vested awards under the LTIP 46 (152) –
Proﬁ t for the period 12,520 8,967
Total recognised income for the year attributable to shareholders 
to the Company
49 12,368 8,967
Company income statement
Year ended 31 December 2006
Company statement of recognised income and expense
Year ended 31 December 2006 Raymarine plc Annual Report 2006 60
2006
£’000
2005
£’000
Note
Non-current assets
Intangible assets 42 274 274
Current assets
Trade and other receivables 39 27
Amounts owed by Group undertakings 17,185 10,506
Current tax assets 2,637 2,816
Cash and cash equivalents 44 10 202
19,871 13,551
Current liabilities
Trade and other payables 45 129 239
Amounts owed to Group undertakings 27 282
156 521
Net current assets 19,715 13,030
Net assets 19,989 13,304
Equity
Share capital 23 828 828
Share premium account 24 3,255 3,207
Equity reserve 46 859 155
Hedging and translation reserve 47 (382) (405)
Retained earnings 48 15,429 9,519
Equity attributable to equity shareholders to the Company 49 19,989 13,304
Company balance sheet
At 31 December 2006
The ﬁ nancial statements were approved by the Board of directors and authorised for issue on 26 February 2007. They were signed on its behalf by:
Tony Osbaldiston
(Finance director) 61 Raymarine plc Annual Report 2006 
2006
£’000
2005
£’000
Note
Net cash from operating activities 50 (308) (2,632)
Investing activities
Dividends received 12,908 7,516
Net cash from investing activities 12,908 7,516
Financing activities
Issue of ordinary shares 48 42
Increase in intercompany loans (6,127) (3,354)
(Repayments) / increase of intercompany borrowings (255) 90
Dividends paid (6,458) (1,656)
Net cash used in ﬁ nancing activities (12,792) (4,878)
Net (decrease) / increase in cash and cash equivalents (192) 6
Cash and cash equivalents at beginning of year 202 154
Effect of foreign exchange rate changes – 42
Cash and cash equivalents at end of year 10 202
Company cash ﬂ ow statement
Year ended 31 December 2006 Raymarine plc Annual Report 2006 62
2006
£’000
2005
£’000
Auditors’ remuneration for audit services (see below) 9 8
The analysis of auditors’ renumeration is as follows:
2006
£’000
2005
£’000
Fees payable to the Company’s auditors for the audit of the Company’s annual accounts 9 8
Total audit fees 9 8
Other services pursuant to legislation:
   Tax services related to:
      Compliance 10 6
      General advisory 43 96
  Other services:
      IFRS implementation advice – 42
Total non-audit fees 53 144
2006
£’000
2005
£’000
Dividends received 12,908 7,516
Interest received 395 10
Foreign exchange gains 2 65
13,305 7,591
2006
£’000
2005
£’000
Interest paid on intercompany borrowings – 244
37. Operating loss
Operating loss before ﬂ otation and non-recurring costs is stated after charging:
A description of the work of the Audit Committee is set out in the Corporate governance statement on page 18 and includes an explanation of how 
auditor objectivity and independence is safeguarded when non-audit services are provided by the auditors.
38. Staff costs
There were no employees of the Company during the year ended 31 December 2006 (2005: nil). Emoluments of the Non-executive directors can be 
found in the Directors’ remuneration report on page 23.
39. Finance income
40. Finance costs
36. Signiﬁ cant accounting policies
The separate ﬁ nancial statements of the Company are presented as required by the Companies Act 1985. As permitted by that Act, the separate 
ﬁ nancial statements have been prepared in accordance with International Financial Reporting Standards.
The ﬁ nancial statements have been prepared on the historical cost basis. The principal accounting policies adopted are the same as those set out in 
Note 2 to the consolidated ﬁ nancial statements except as noted below.
Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment.
Notes to the Company ﬁ nancial statements
Year ended 31 December 2006 63 Raymarine plc Annual Report 2006 
Goodwill
£’000
Cost and net book value
At 1 January 2005, 1 January 2006 and 31 December 2006 274
Name of subsidiary
Place of 
incorporation 
(or registration)
Principal 
activity
Class and 
percentage 
shares held
Method used 
to account for 
investment
Raymarine Holdings Limited Great Britain Holding company Ordinary 100% Purchase
Raymarine 2002 Limited* Great Britain Non-trading Ordinary 100% Purchase
Raymarine Inc.* US Marine Electronics Ordinary 100% Purchase
Raymarine UK Limited* Great Britain Marine Electronics Ordinary 100% Purchase
Raymarine Asia Pty Limited* Australia Marine Electronics Ordinary 100% Purchase
2006 2005
£’000 % £’000 %
Proﬁ t before tax 12,699 6,741
Tax at domestic income tax rate of 30% (2005: 30%) 3,810 2,022
Tax effect of expenses that are not deductible in determining taxable proﬁ t 7 9
Dividend income not taxable (3,872) (2,250)
Adjustment to tax charge in respect of previous periods 234 (2,007)
Tax charge / (credit) and effective tax rate for the year 179 1.4% (2,226) (33.0%)
2006
£’000
2005
£’000
Current tax:
Domestic – Current (55) (219)
               – Prior year 234 (2,007)
179 (2,226)
41. Taxation
Domestic income tax is calculated at 30% (2005: 30%) of the estimated assessable proﬁ t for the year.
The charge / (credit) for the year can be reconciled to the proﬁ t per the income statement as follows:
42. Intangible assets
43. Subsidiaries
Details of the Company’s subsidiaries at 31 December 2006 are as follows:
*Investment held by a subsidiary company. Raymarine plc Annual Report 2006 64
£’000
Balance at 1 January 2006 155
Vested awards under the LTIP 152
Awards under the LTIP 313
Share option plan 7
Deferred tax on the above items 232
Balance at 31 December 2006 859
Translation 
reserve
£’000
Balance at 1 January 2005 (406)
Exchange differences on translation of Employee Beneﬁ t Trust 1
Balance at 1 January 2006 (405)
Exchange differences on translation of Employee Beneﬁ t Trust 23
Balance at 31 December 2006 (382)
£’000
Balance at 1 January 2005 2,263
Net proﬁ t for the year 8,967
Dividends paid (1,656)
Other adjustments (75)
Exchange differences 20
Balance at 1 January 2006 9,519
Net proﬁ t for the year 12,520
Dividends paid (6,458)
Vested awards under the LTIP (152)
Balance at 31 December 2006 15,429
44. Financial assets
Cash and cash equivalents
These comprise cash held by the Company and short-term bank deposits with an original maturity of three months or less. The carrying amount of these 
assets approximates their fair value.
45. Financial liabilities
Trade and other payables
Trade payables principally comprise amounts outstanding for trade purchases and on-going costs. The average credit period taken for trade purchases is 
18 days (2005: 38 days).
The directors consider that the carrying amount of trade payables approximates to their fair value.
46. Equity Reserve
47. Hedging and translation reserve
48. Retained earnings 65 Raymarine plc Annual Report 2006 
2006
£’000
2005
£’000
Total recognised income and expense for the year 12,368 8,967
Dividends paid (6,458) (1,656)
Increase in share capital and premium 48 41
Increase in equity reserves 704 155
Other adjustments – (75)
Exchange differences 23 21
6,685 7,453
Shareholders’ equity brought forward 13,304 5,851
Shareholders’ equity carried forward 19,989 13,304
2006
£’000
2005
£’000
Operating loss (606) (606)
Adjustments for:
 Foreign exchange 23 57
Operating cash ﬂ ows before movements in working capital (583) (549)
     Increase in receivables (12) (26)
     Decrease in payables (110) (1,914)
Cash used in operations (705) (2,489)
Interest received 395 10
Interest paid – (244)
Foreign exchange 2 65
Tax received – 26
Net cash outﬂ ow from operating activities (308) (2,632)
Equity comprises share capital, share premium, hedging and translation reserve and retained earnings.
50. Notes to the cash ﬂ ow statement
Cash and cash equivalents (which are presented as a single class of assets on the face of the balance sheet) comprise cash at bank and other short-
term highly liquid investments with maturity of three months or less.
49. Statement of changes in equity Raymarine plc Annual Report 2006 66
IFRS UK GAAP
2006
£’000
2005
£’000
2004
£’000
2003
£’000
2002
£’000
Results
Revenue 136,490 121,851 106,268 93,616 94,772
Operating proﬁ t 16,096 11,077 11,385 5,967 9,631
Proﬁ t before tax 14,091 8,062 5,257 990 1,832
Proﬁ t attributable to equity shareholders of Raymarine plc 10,337 8,367 2,492 306 794
Assets employed
Non-current assets 52,713 49,459 51,156 45,020 48,373
Current assets 40,563 37,761 42,349 35,425 34,254
Current liabilities (29,761) (25,108) (26,106) (18,559) (15,795)
Non-current liabilities (40,896) (44,151) (56,885) (57,261) (62,059)
Net assets 22,619 17,961 10,514 4,625 4,773
Financed by
Equity 22,619 17,961 10,514 4,625 4,773
Key statistics
Basic earnings per share 12.5p 10.1p 3.3p 0.4p 1.05p
Diluted earnings per share 12.2p 10.0p 3.0p 0.4p 1.01p
The amounts disclosed before 2004 are stated on the basis of UK GAAP because it is not practicable to restate amounts for periods prior to the date 
of transition to IFRS. 
 
The Company was incorporated on 22 August 2000 and the Group began to trade on 29 January 2001.
Five year summary 67 Raymarine plc Annual Report 2006 
Shareholder information and professional advisers
Report and accounts
Copies of the 2006 report and accounts will be sent to shareholders and will be available after 18 May 2007 from the Company Secretary at the 
registered ofﬁ ce. Raymarine ﬁ nancial information is also available at our website www.raymarine.com
Registered ofﬁ ce
Raymarine plc, 
Anchorage Park, 
Robinson Way, 
Portsmouth, 
Hampshire 
PO3 5TD
Shareholder enquiries
Lloyds TSB Registrars maintain the Company’s share register. Enquiries about standings should be addressed to the Registrars at The Causeway, 
Worthing, West Sussex BN99 6DA (telephone 0870 600 3970).
Annual General Meeting
The AGM will be held at the Little Ship Club, Bell Wharf Lane, Upper Thames Street, London EC4R 3TB on Friday 18 May 2007 at 11am.
Professional advisers
Financial adviser
Hawkpoint Partners Limited
41 Lothbury
London 
EC2R 7AE
Broker
JPMorgan Cazenove Limited
20 Moorgate
London
EC2R 6DA
Auditors
Deloitte & Touche LLP
1 Grosvenor Square
Mountbatten House
Southampton
SO15 2BZ
Principal bankers
Lloyds TSB plc
25 Gresham Street
London 
EC2V 7HN Raymarine plc Annual Report 2006 68 ANNUAL REPORT AND ACCOUNTS
2006
ALGERIA
ANTIGUA
ARGENTINA
AUSTRIA
AUSTRALIA
BAHAMAS
BAHRAIN
BELGIUM
BERMUDA
BRAZIL
BRITISH VIRGIN ISLANDS
BULGARIA
CANADA
CANARY ISLANDS
CHILE
CHINA
CROATIA
CYPRUS
DENMARK
ECQUADOR
EGYPT
ESTONIA
FINLAND
FRANCE
GERMANY
GHANA
GIBRALTAR
GRAND CAYMAN ISLANDS
GREECE
HONG KONG
ICELAND
INDIA
INDONESIA
IRAN
ISRAEL
ITALY
JAMAICA
JAPAN
KOREA
KUWAIT
LATVIA
LEBANON
MALAYSIA
MALTA
MEXICO
MOROCCO
NETHERLANDS
NEW CALEDONIA
NEW ZEALAND
NORWAY
OMAN
PANAMA
PAPUA NEW GUINEA
POLAND
PORTUGAL
PUERTO RICO
QATAR
RUSSIA
SINGAPORE
SLOVENIA
SOUTH AFRICA
SPAIN
SRI LANKA
ST. LUCIA
SWEDEN
SWITZERLAND
TAIWAN
TAHITI
THAILAND
TRINIDAD
TUNISIA
TURKEY
TURKS AND CAICOS ISLANDS
UNITED ARAB EMIRATES
UNITED STATES OF AMERICA
UNITED KINGDOM & IRELAND
USVI ST. THOMAS
URUGUAY
VENEZUELA
VIETNAM
ZIMBABWE
 
World leaders in electronics for the marine industry
Raymarine plc Anchorage Park, Portsmouth, Hampshire, PO3 5TD, England.
Tel: +44 (0)23 9269 3611 / Fax: +44 (0)23 9269 4642
Photography courtesy of:
Azimut-Benetti S.p.A.; Cranchi; Glen Gall; Gozzi; Hallberg Rassy AB;
Joe McCarthy; Lagoon Catamarans; Malö Yachts; Nimbus Boats AB; Safehaven Marine; 
Saga Boats; Sealine International Limited; Shelley Jory; Shutterstock; 
Spirit Yachts and Onne van der Wal.
2006 ANNU AL REPOR T AND A CCOUNTS
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