Kellan /ke:l:an/ adj. 1. Meaning powerful. 
2. Celtic origin. 3. Formerly known as 
Berkeley Scott Group
Kellan group plc
 Annual report and accounts 2007
Moving 
forward I Kellan Group is a market leading 
recruitment business operating across a 
wide range of functional disciplines and 
industry sectors. The Group’s stated strategy 
is to grow into a significant business 
in the UK market, achieved both by 
acquisition and organic growth. 
Our intention is to use Kellan Group as a vehicle to develop a portfolio of 
premium brands within the currently fragmented recruitment sector. Currently, 
through its 3 recruitment brands, Berkeley Scott, Quantica and RK, Kellan Group 
has the capability and resource to recruit professionals into finance & accounting, 
information technology, supply chain & procurement, legal, retail, manufacturing, 
catering, hospitality and leisure.
leading brand naMes 
large MarKet opportunity 
experienced Manage Ment 
24 uK offices
At a glance IFC
Highlights 01
Co‑Chairmans’ statement 02
Business review:  
Chief Executive Officer’s report 04
Business review:  
Chief Financial Officer’s report 12
Business review: Outlook 15
Board of directors 16
Advisers, financial calendar  
and shareholder information 17
Report of the directors 18
Report of the independent auditors  20
Consolidated income statement 21
Consolidated balance sheet 22
Consolidated statement 
of changes in equity 23
Consolidated cash flow statement 24
Notes to the financial statements 25
Company balance sheet 40
Notes to the financial  
statements continued 41
Notice of annual general meeting 45
Form of proxy 47
Moving 
forward At a glance

24 UK offices
6 businesses
3 brands

RK Accountancy specialises in finance and accountancy recruitment, 
ranging from clerical and supervisory level accounts staff through 
to part-qualified and newly qualified accountants on a temporary 
and permanent basis. 
Through in-depth training and development of its consultants, 
RK Accountancy ensures it can deliver a contingency recruitment 
service based on search and selection principles which has enabled 
it to win business, differentiate itself in the marketplace and extend 
its geographical reach.

For over 20 years, the Berkeley Scott name has been synonymous 
with excellence in recruitment for the hospitality and leisure 
sectors. From chefs to Chief Executives, we have been responsible 
for introducing high quality talent into many of the best known 
brand names in the industry. Our reputation for service excellence 
and integrity has made us the market leader in our sector.
T oday, our client base has broadened to include a range of consumer 
focused, service oriented sectors including retail, brewing, FMCG, 
facilities management, travel and tourism. Berkeley Scott is 
comprised of two key business lines, temporary and permanent 
recruitment, working in close harmony to provide a complete 
range of recruitment and people services.
Offices in:
I AltrinChAM
I BirMinGhAM
I BriStol
I CArdiFF
I CheSter
I ColCheSter
I ellAnd
I GlASGow
I God AlMinG
I leedS (5)
I liverpool
I l ondon (3)
I MAnCheSter (3)
I Milton KeyneS
I preSton
I SouthAMpton At a glance

Quantica Search & Selection is a niche provider of search 
and selection recruitment services to a range of industry sectors, 
covering legal, manufacturing, technical and retail.
Working mainly on a retained basis, teams of consultants recruit 
at levels from director and senior management positions through 
to specialist operational roles. The majority of our work comes 
from referral and returning clients and candidates having developed 
an impressive network since our formation in 1991.

Quantica Technology is hugely experienced in the provision of UK 
technology recruitment such as IT contract vacancies, permanent 
IT jobs, SAP recruitment and programmer vacancies, with a 10 year 
track record of delivering excellent service to some of the UK’s 
most demanding IT customers.
We provide all mainstream technology recruitment and 
the services we provide are broadly split into contract and 
permanent recruitment. Quantica Technology also has a wealth 
of experience in the running of highly successful technology 
recruitment campaigns. 

RK Supply Chain has been at the forefront of talent acquisition 
in the supply chain arena for more than 11 years. Operating from 
three offices in the UK and Toronto, we have built a market leading 
brand and enviable reputation through consistently delivering 
solutions to a diverse range of clients across all sectors and 
from SME’s to multi national blue chip organisations. 
In 2007 we more than doubled the size of our consultant team 
and this year we will see the results of this investment. There 
is now a higher demand than ever for quality supply chain 
professionals and our experience of the market, quality of 
consultants and size of our database allows us a greater 
candidate reach.

The RK Search division comprises Robinson Keane, a highly 
regarded and broadly based executive search business and 
four highly focused niche search businesses specialising 
in outsourcing, energy and infrastructure, customer service 
and finance.
Robinson Keane competes successfully at board level with 
the UK’s leading search firms across most sectors of business 
and has an increasingly strong public sector presence.
RK’s niche search practices deal largely with multinational 
market leading corporations meeting a demand for highly specific 
and hard to find senior management skill sets both in the UK 
and increasingly overseas. 01 Kellan Group plc Annual report and accounts 2007
Highlights
I  Investment of £2.5m in the business by Tony Reeves and 
John Bowmer through the subscription of new shares.
I  John Rose appointed CEO in May, joined from Hudson UK 
and Ireland where he was CEO.
I  The Group made its first acquisition under its new management 
team in September 2007, being Quantica plc.
I  Berkeley Scott Ltd demonstrates a clear turnaround, returning 
the business to profitability in the last quarter of the period, 
following a loss in the corresponding calender quarter of 2006. 
The business is now focused on permanent and temporary 
recruitment with the solutions and executive search operations 
having been exited. 
I  Pleasing progress has been made in integrating the acquired 
companies. Annualised synergies of £1.1m identified to date 
with the majority substantially implemented. Total synergies 
are expected to exceed £1.3m by 2009.
I  Loss for the period of £1,762,000, however an adjusted EBITDA
(1)
 
of £402,000 is reported in line with market expectations.
I  Gearing profile
(2)
 of the Group improved markedly to 18.4% 
from 128.7%.
Notes
1  Earnings before interest, tax, depreciation and amortisation adjusted to add 
back non‑recurring costs and share based payment charges as detailed in note 4 
to the financial statements.
2  Face value of loans and borrowings as a percentage of total equity as detailed 
in the Chief Financial Officer’s Report. 02 Kellan Group plc Annual report and accounts 2007
Summary
I  Berkeley Scott Group plc changed its name 
to Kellan Group plc to distinguish itself from 
the hospitality and leisure recruitment brand.
I  Rationalising of Kellan’s cost base for 
profitability has been a key priority since 
January 2007.
I  Kellan has embarked upon growing 
its brands faster than the market.
I  We anticipate a positive performance 
for the year.
I  We continue to strive to build a successful 
Company that will be a significant force 
in the industry.
There has been great progress in the 
Kellan Group plc, formerly Berkeley Scott 
Group plc, since our last report. Most notably 
we have changed the name of the Group to 
distinguish the publicly listed holding Company 
from its trading brands. In addition we’ve 
appointed an outstanding CEO for the Group, 
acquired two leading recruitment brands, 
rationalised the cost base to increase 
profitability and established our strategic 
priorities for future growth. 
Kellan Group plc became the new name for 
Berkeley Scott Group plc on 18 February 2008. 
The Berkeley Scott name will remain for Kellan’s 
hospitality and leisure recruitment business 
where it is well known and regarded in those 
markets. It now sits alongside Kellan’s other 
separately branded, specialist staffing entities 
in such sectors as technology, retail, finance 
and accounting, legal, niche manufacturing 
and supply chain.
Rationalising Kellan Group’s cost base to 
increase profitability was our first task when 
we refinanced the Company in January 2007. 
Making Berkeley Scott profitable and cash 
generative as quickly as possible and restoring 
its position as a pre‑ eminent hospitality and 
leisure recruitment brand was quickly achieved. 
Branch rationalisation, general cost cutting, 
improved product offerings and strengthening 
the sales culture through the business helped 
achieve this goal, along with the appointment 
of a very experienced CEO, John Rose, 
who joined in May 2007 from Hudson UK 
and Ireland. 
We are now embarked on growing the Kellan 
brands faster than the market. Our longer term 
ambitions are to grow Kellan organically and 
by acquisition into a broad based stable of 
notable, well respected brands in temporary 
and permanent specialist staffing. To this end 
Kellan acquired fellow AIM listed Quantica plc 
in September 2007 for £30.3m. Quantica has 
excellent brands in information technology, 
finance and accounting, search and selection 
and supply chain. We believe these brands 
can be developed to produce excellent 
growth and profits.
Key to our success will be the hard work 
and talent of the people of Kellan. Our aim is 
to develop and promote existing colleagues 
and to bring in gifted people from the outside 
when necessary. We have discussed our 
key CEO hire, who has worked hard on 
the transformation of Berkeley Scott including 
the promotion of an existing manager to 
Managing Director as well as the appointment 
of several managers from the outside. Quantica 
too has many accomplished people who have 
responded well to their new challenges. 
We thank everyone for their outstanding 
contributions to our 2007 results and look 
forward to our continuing success.
We are pleased that these results reflect 
our stated strategic, operational and financial 
aims for 2007 and are happy to report that 
further significant progress has been made 
in the first quarter of 2008. Kellan is performing 
very well. We are not seeing any impact from 
the turmoil in the world economy on trading 
to date. We are optimistic for a positive 
performance in the remainder of the year.
We will continue to strive to build a successful, 
durable Company that will be a significant 
force in the staffing industry in the next few 
years. We thank you, our shareholders, 
for your past support and look forward 
to a bright future.
Tony Reeves John Bowmer
Co‑Chairman Co‑Chairman
28 March 2008 28 March 2008
Co‑Chairmans’ statement
John Bowmer Non‑Executive Co‑Chairman
Tony Reeves Non‑Executive Co‑Chairman   BERKELEY sCOTT AND 
LOCh FYNE REsTA uRANTs
 “ I HAvE HAd THE plEASuRE of wo RKING w ITH BERKEl Ey SCoTT 
foR THE p AST Two yEARS Now ANd I would RECoMMENd THEIR 
SERvICES To ANy fu Tu RE Cl IENT. THEy ARE THoRouGH IN THEIR 
AppRo ACH ANd vER y EffICIENT IN ARRANGING INTERvIEwS . THEy 
ABSoluTEly uNdERSTANd ouR vER y SpECIfIC BRIEf So No TIME IS 
w ASTEd INTERvIEwING uNSuITABlE CANdId ATES. IN My opINIoN 
BERKEl Ey S Co TT HAv E pl Ay Ed A SIGNIf ICANT Rol E IN Sou RCING 
THE pEoplE wHo HA vE HElpEd BuIld l oCH fyNE RESTA uRANTS 
INTo THE uK’S lEAdING SEAfood RESTA uRANT CHAIN.”
 Jason Thomas 
 Regional Director 
 Loch Fyne Restaurants
Loch Fyne Restaurants started 
with one inspirational idea – to grow 
oysters in the clear, fertile waters of 
Loch Fyne – and has developed into 
a cluster of businesses whose success 
is built on an honest approach to 
superb quality food.
All Loch Fyne Restaurants abide by 
the guiding environmental principles 
established by John Noble and 
Andy Lane at the outset. The 
companies work together to ensure 
that only the very best produce – 
farmed and fished to the highest 
quality and environmental standards 
– reaches the kitchens and plates 
of their customers.
In line with this philosophy, recruiting 
and retaining the very best talent in 
the industry is critical to the success 
of Loch Fyne Restaurants. Some two 
years ago Loch Fyne Restaurants 
started working with Berkeley Scott 
because of their reputation for being 
market leaders in the hospitality and 
leisure recruitment sector. Both 
companies enjoyed success. 
Berkeley Scott found that working 
with such a strong and recognised 
brand in the ever competitive 
restaurant sector made attracting 
great candidates so much easier. 
More recently, Berkeley Scott has 
introduced an account management 
structure into Loch Fyne Restaurants. 
The account is handled by one person 
within Berkeley Scott who understands 
the brand inside and out. They act 
as a filter to ensure that all the CVs 
and candidates presented to 
Loch Fyne Restaurants meet their 
strict criteria. The benefits to the 
client are plenty: one point of contact 
who knows everything about their 
business, consistency in CVs 
and candidate screening, quick and 
efficient processes agreed by both 
businesses and most importantly the 
recruitment of the best candidates 
in the market within the tight 
timescales the restaurant chain 
needs to work within.
Jason Thomas
Regional Director
Loch Fyne Restaurants
Kellan Group plc Annual report and accounts 2007 03 04 Kellan Group plc Annual report and accounts 2007
Summary
I  Today Kellan is a profitable, acquisitive, 
ambitious and multi functional 
recruitment business.
I  A number of clear measures have been 
taken to re‑ energise Berkeley Scott Ltd 
driving improved efficiency and 
financial performance.
I  Quantica acquisition in September was in 
line with our strategy for growth and gave 
us diversification into new markets.
I  Continued focus on driving sales growth 
and creating efficiencies that will result 
in cost savings & improved margins.
I  Management team’s past experience and 
successful track record are seen as a key 
competitive advantage.
It gives me great pleasure to write my first 
review as Chief Executive since joining the 
Company in May 2007.
Kellan Group is barely recognisable as the 
business it was just two years ago. In 2006 
we were a business operating purely in the 
hospitality & leisure sector with a market 
capitalisation of under £2m. As I write this 
report we are a profitable, acquisitive, ambitious 
and multi‑functional recruitment business 
with a clear growth strategy for the future.
2007 was a pivotal period in the development 
of our Company, with the subscription by 
Tony Reeves and John Bowmer, my arrival 
as CEO and our first acquisition – that 
of Quantica plc. With the strength of our 
individual brands, we believe that we are well 
positioned to deliver strong growth both by 
making further acquisitions and through the 
development of our existing businesses.
f inancial performance
We have changed our prior September 
year end to bring it in line with Quantica’s 
December year end. Consequently, this set 
of results represents 15 months of trading 
for Berkeley Scott and the 3 months from 
Quantica post-acquisition up until the period 
end. In future, results will be based on full 
calendar years. Given the relatively late 
timing of the Quantica acquisition and the 
re‑structuring activity that has occurred in 
the Group, the 2007 results presented do 
not yet show the turnaround in bottom line 
profitability that we anticipate in 2008. 
Notwithstanding these comments, there has 
been significant progress made in our trading 
divisions, most notably Berkeley Scott.
operating Review by Business unit 
Berkeley Scott ltd
Since the injection of funds early last year, a 
great deal of change has been implemented 
at our hospitality and leisure recruitment 
business. In the first few months under new 
management we: 
I  undertook an analysis of the strengths 
and weaknesses of the business;
I   spent much time with our people and our 
customers, understanding its perception 
both internally and in the marketplace; 
I   set a new strategic direction for the 
business, as a result of which we pulled 
out of non‑ core geographies and 
businesses; and
I   restructured the operations, rationalised 
our cost base and introduced a sales culture. 
These measures continue to re‑energise the 
Company, driving improved efficiency and 
financial performance. The net effect is a 
much more robust business with an exciting 
growth path.
The key goal for Berkeley Scott during 2007 
was to return it to profitability. This has meant 
a number of changes within the business.
1. Implementation of a business 
rationalisation programme
We have refocused our resources to ensure 
greater focus and penetration in a smaller 
number of offerings, locations and businesses. 
Consequently we closed down our ‘Solutions’ 
business which had delivered recruitment 
related services to clients. We also decided 
to focus our recruitment business into higher 
potential and strategically important geographies 
and so closed offices in Cardiff, Edinburgh 
and Cambridge. Finally, in order to clarify 
our service offering, we discontinued our 
executive search brand ISIS. As a result of 
these decisions, our strategy in hospitality 
recruitment is now supported by a single 
market offering, in locations with strong 
growth prospects.
will Coker Chief Financial Officer
John Rose Chief Executive Officer
Business review: Chief Executive Officers’s report   Qu ANTICA sEARCh & sELECTION 
AND BENTLEY MOTORs LIMITED
 “ QuANTICA HAvE pRovIdEd A pRofESSIoNAl SERvICE ANd 
HAvE THE RESpECT ANd TRu ST of THE SENIo R MANAGERS 
IN THE ENGINEERING dEpARTMENT.”
 Neil Shone 
 Personnel Operations Manager 
 Bentley Motors Limited
Bentley Motors Limited is dedicated 
to making responsive and powerful 
Grand Tourers capable of crossing 
continents at pace and drive in 
refined style and comfort. Since the 
acquisition by Volkswagen AG in 
1998 Bentley has taken the giant 
leap from a small, honoured yet 
historical automotive manufacturer, 
to a modern, dynamic and influential 
brand within the automotive industry. 
To support this growth, Bentley 
needed to recruit key individuals 
who could thrive in a challenging 
environment and match its ambition.
The challenge given to Quantica 
Search & Selection was to identify 
and source the top Engineering 
individuals in the automotive 
business, with the objective of 
providing Bentley with the talent 
to develop its engineering capability 
and continue to advance its 
engineering programmes.
Through an in‑ depth attraction, 
sourcing and filtering strategy, 
Quantica managed to successfully 
recruit a variety of Senior Engineers 
into the business. The search 
strategy covered the automotive 
industry and included focused 
headhunting into similar OEM and 
first-tier manufacturers across the 
UK. There was also a marketing 
strategy whereby attractive adverts 
were placed in the main industry 
publications and across a number 
of relevant websites, as well as 
seeking recommendations from 
a network of ‘trusted’ candidates.
Neil Shone, Personnel Operations 
Manager from Bentley Motors 
Limited said, “We have been 
working in partnership with 
Quantica Search & Selection for 
the past ten years. We have given 
them some challenging briefs and 
they have an excellent track record 
of sourcing a number of successful 
candidates across the full range 
of our Engineering disciplines from 
Engineering Managers through to 
Specialist Engineers. These are 
incredibly difficult people to recruit 
and thanks to Quantica, their excellent 
team and the great people they have 
recruited for us, they have enabled 
Bentley to deliver some of their key 
projects on time. They have provided 
a professional service and have 
the respect and trust of the 
senior managers in the 
Engineering department.”
Kellan Group plc Annual report and accounts 2007 05 06 Kellan Group plc Annual report and accounts 2007
Business review: Chief Executive Officer’s report
2. Streamlining of management team
In December 2007 we announced the 
appointment of Mark Darby as Managing 
Director of Berkeley Scott. Mark is an 
outstanding leader of people and has quickly 
stamped his personality on the business. 
He is continuing to drive the strategy we 
spent 2007 building and I am confident that 
he and his team will continue to take the 
business forward.
3. Adoption of a strategy of 
‘higher margin, higher value’
Moving up the value chain has been key to 
our turnaround. Historically the Company has 
placed candidates into low value, low wage 
roles. We have worked hard, with excellent 
results, to refocus our consultants to place 
more senior candidates into higher value 
roles and into capturing the pricing potential 
of Berkeley Scott’s premium brand. The early 
success of this strategy can be seen above.
4. Introduction of a strong sales culture
The appointment of Alistair Rennie as 
Sales Director has already had a huge effect 
on the sales culture of the business and he 
has driven the ‘higher margin, higher value’ 
strategy with great success. To further support 
the strategy we have introduced a new bonus 
scheme across the business which encourages 
and rewards higher fee performance. We have 
also significantly adapted our front office 
recruitment systems to provide the necessary 
tools and management information.
5. Staff development and retention
Our investment in internal recruitment, 
training and career development has ensured 
much greater control over our staff turnover. 
The Group’s rapid emergence into the spotlight 
since John and Tony’s investment, coupled 
with the strong brand which already existed, 
has started to create a far stronger employer 
brand. Additionally, we are hopeful that the 
confidence of our staff in the future of the 
business has grown, along with the career 
options for them as employees of a bigger, 
stronger Group.
Given the 15 month period, prior year 
comparisons are difficult but it is worth 
focusing on the October to December quarter 
for 2007 and comparing it with the same period 
for 2006. The key metrics are shown on page 
8. This turnaround is absolute testament to the 
support of the management team and staff at 
Berkeley Scott, the way they have embraced 
change and their desire to be part of a success 
story. We are confident of a bright future 
for Berkeley Scott.
Quantica Group
Our first acquisition, that of Quantica plc 
in September 2007 was completely in line 
with our strategy for growth and fitted our 
criteria perfectly: Strong brand names allowing 
us diversification into new markets, high 
calibre management and staff and excellent 
potential for growth and greater scale. 
Quantica Search & Selection 
Quantica Search & Selection have established 
a strong position in the market place, particularly 
within the manufacturing, retail and legal 
sectors. 2007 was a positive year for the 
business with significant growth at both 
revenue and contribution levels. Historically 
the business was located in non‑ city centre 
locations, however the last two quarters of 
2007 saw some heavy investment into the 
business with the opening of two new offices 
in Manchester and Leeds city centres. 
Consequently, we have focused on attracting 
and recruiting experienced consultants into 
the business and we are delighted with the 
calibre of the individuals attracted to working 
for us by our strong brand.
We are confident that this focus on recruiting 
experienced consultants will enable us to 
widen our client base and further establish 
our brand reputation in 2008.
Historically the business has been 100% 
permanent recruitment but towards the end 
of 2007 we moved into the contract arena. 
We will continue to focus on and grow this 
revenue stream in 2008. In addition, last year 
we extended our retail offering into Europe 
where we believe the retail market is more 
stable. This will also be a continued focus 
in 2008.
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Series1
Dec
2006
Jan
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Feb
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2007
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2007
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2007
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2007
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(1)  Prior period quarter adjusted to only include 
existing businesses at 31 December 2007.
(2)  Revenue less the cost of wages and fees 
paid to temporary workers and contractors.
Berkeley Scott limited like ‑for ‑like
(1)
 net fee income
(2)
 growth on the same quarter of prior year
+18%
TOTAL INCREASE IN THE LAST 
QUARTER OF 2007 ON THE 
LAST QuARTER OF 2006   Qu ANTICA TEChNOLOg Y AND DLA PIPER
 “ w o RKING w ITH QuANTICA o N ou R RECENT RECRu ITMENT CAMpAIGN 
w AS AN u NExp ECTEd pl EASu RE. THEy u Nd ERSTood ANd AdApTEd 
To ou R SpECIf IC NEEd S, THEy w ERE Co MMERCIAlly fl Ex IBl E ANd 
HAd A GREAT TEAM of pEoplE RuNNING THINGS BEHINd THE SCENES .”
 Jed Lowe  
 Head of Development and Support 
 DLA Piper
DLA Piper in the uK provides full 
service legal advice from London 
and its major UK centres. They 
are the 5th largest legal services 
organisation in the UK, with over 
2800 people including over 300 
partners. They know that in order 
for their advice and solutions to 
be effective, they need to engage 
completely with their clients to fully 
understand their businesses. 
Quantica have been working with 
DLA for some 5 years and have 
had an excellent relationship with 
Jed Lowe (Head of Development and 
Support) and a good understanding 
of the type of people they require 
in their organisation. An example of 
this is a recent retained advertising 
campaign and interview evening.
Both parties agreed that a 
recruitment evening was the best 
solution to attract the necessary 
candidates for 18 IT vacancies. 
The first step was for Quantica to 
run a marketing campaign in local 
press and computer magazines, 
advertising the up and coming 
event. The response was immense 
and Quantica invested a great deal 
of time screening all the CVs and 
inviting 46 of the most suitable 
candidates along to the evening.
The evening began with DLA ’s Global 
IT Director presenting the Company 
history and vision to the potential 
recruits. This gave them a thorough 
in‑ site into the business and their plans 
for the future. The candidates then had 
a 15 minute interview with one of the 
ten IT managers that attended the 
evening. The 46 were then short listed 
down to 20 candidates, all were invited 
back the following week for a more 
thorough interview. 
Following these interviews 18 offers 
were made and 17 candidates 
accepted the positions making it the 
most successful recruitment event 
that DLA had ever undertaken.
“Working with Quantica on our 
recent recruitment campaign was 
an unexpected pleasure. They 
understood and adapted to 
our specific needs, they were 
commercially flexible and had 
a great team of people running 
things behind the scenes.
That being the case what really 
proves success are the results. The 
Quantica campaign managed to fill 
all vacancies with remarkably high 
calibre individuals who fit in well 
with the culture and nature of my 
department. We are already reaping 
the benefits of this with none of the 
usual issues of getting new starters 
up to speed and effective.”
Jed Lowe
Head of Development and Support
DLA Piper
Kellan Group plc Annual report and accounts 2007 07
Courtesy of Carey Jones 08 Kellan Group plc Annual report and accounts 2007
Quantica Technology
Technology places high calibre IT 
professionals, predominantly in the North 
of England. It is a very profitable business 
but at only 10% of the Group’s Net Fee 
Income (revenues less the cost of wages 
and fees paid to temporary workers and 
contractors: “NFI”), it is still a small business 
in a large market giving significant scope for 
growth from a strong platform. 2007 saw 
the start of a strategy for growth with a 
significant headcount increase at its office 
in Elland and crucially, the opening of its first 
satellite office: Leeds was opened in July and 
has already delivered above management 
expectation and is trading profitably. 
Consistency of delivery is critical in this sector 
and Quantica Technology’s well established 
record of repeat business is most impressive. 
Added to its customer base and strong local 
brand is an outstanding management team, 
all possessing extensive market experience. 
Technology have commenced 2008 with a 
contractor base 35% higher than at the start 
of 2007 and we are very confident about their 
continued growth potential.
RK Accountancy
We see much growth potential in this 
business which specialises in the temporary 
and permanent clerical to junior management 
accountancy markets. Currently operating out 
of seven locations, the business has delivered 
strong organic growth in 2007 but is now ready 
to move into the next stage of its development. 
A minimum of two new offices are planned 
for 2008 with Warrington due to open in May. 
Additionally, and to assist this platform of 
growth, a large IT investment into both the 
infrastructure and platform is being made 
during the first half of this year.
RK Supply Chain
The London, Manchester and Toronto based 
supply chain recruitment business operates in 
a fast growing niche sector of the recruitment 
market. We specialise in management positions 
within the procurement, supply chain, planning 
& logistics industry. The market remains 
strong with a high demand across all sectors.
In quarters 3 and 4 of 2007 we invested 
heavily in the London operation and recruited 
in excess of 15 new team members. We 
benefited from some very early successes 
from these new recruiters and our revenue 
per head in quarters 3 and 4 made significant 
improvements on the previous 2 quarters. We 
fully expect to see this success continue and 
consider 2008 as a year of opportunity for 
RK Supply Chain with the main focus being 
on the continued development of the new 
team members to enable them to reach 
their full potential.
RK Search
RK‘s niche Search businesses go into 2008 
with a strong platform for growth. 
Robinson Keane has always had a well 
diversified client base at board level across 
most sectors of commerce and industry and 
is particularly strong on CEO, Chairman and 
N.E.D. assignments. In 2007 it has also made 
progress in developing its presence in the 
private/public sector interface where it has 
made a number of high profile appointments. 
The regional strength of the Robinson Keane 
brand coupled with an increasingly experienced 
consultancy team and a rigorous in‑house 
research process has ensured a very strong 
business pipeline going into 2008.
Within this business, RK’s niche search 
offering enjoyed significant growth in 2007. 
They deal largely with multinational corporations 
at senior management level in relation to 
scarce skill sets which directly impact clients’ 
bottom line performance. Increased fee earner 
headcount in the second half of 2007 
is expected to generate further growth 
in fee income in 2008. 
Employees 
There is no single success factor more 
critical than attracting, developing and 
retaining good people. Kellan Group’s beliefs 
are centred around investing in its people and 
recognising Learning and Development as a 
key contributor to the success of individuals 
and the profitability of the business as a 
whole. Our objectives are that employees 
at all levels receive structured job‑related 
training to enable them to competently perform 
their duties and meet the organisation’s short, 
medium and long term goals. 
Business review: Chief Executive Officer’s report
    October–December  October–December 
    2006  2007
Adjusted EBITDA
(1)
    (£122,000)  £172,000
Average permanent fee    £3,018  £3,766
Average permanent fee earned  
as a % of salary candidate placed   12.7%  15.5%
Consultants Costs  
as % of NFI    65%  51%
Number of permanent 
placements made    458  420
Permanent NFI    £1,148,000  £1,423,000
Berkeley Scott Limited key financials last quarter 2007 compared to last quarter of 2006
(1)  Earnings before interest, tax, depreciation and 
amortisation adjusted to add back non‑recurring 
costs and share based payment charges. By late 2006, The Lowry had proved 
itself a huge success and had 
exceeded all forecasts and plans. 
We therefore needed to appoint an 
exceptional Chairman to help take 
The Lowry to the next level, both in 
terms of its offering and its national 
and international recognition.
We needed someone who shared the 
vision of what The Lowry was about – 
raising the cultural profile of the region 
and contributing to the regeneration 
of the Salford area. We also needed 
someone with authority and credibility 
with the movers and shakers in London 
and the South. All in all, we had a very 
unusual and demanding specification.
Robinson Keane spent a lot of time 
in the early stages of the assignment 
really getting to grips with our 
requirements, both in terms of person 
specification and cultural fit. From 
the first meeting, they gave me 
confidence that they would deliver.
They then undertook an extensive 
headhunting campaign, sourcing and 
targeting suitable people in the fields 
of both the arts and regeneration, 
before presenting us with a very strong 
shortlist, complete with extensive and 
in-depth candidate profiles.
Not surprisingly, the shortlisted 
candidates all demonstrated a 
thorough understanding of our 
vision and our expectations from an 
incoming Chairman, reinforcing my 
view that Robinson Keane’s briefing 
of candidates had been of a very 
high standard and therefore extremely 
effective. Needless to say, a successful 
appointment was made from the 
final shortlist and our new Chairman 
has proved to be an absolute star!
Throughout the assignment, 
Robinson Keane gave us regular, 
concise and appropriate updates 
on progress and administered the 
whole process very efficiently.
I would certainly have no hesitation 
in recommending Robinson Keane 
to other organisations seeking an 
outstanding Chairman.
Julia Fawcett
Chief Executive
The Lowry
 ROBINsON KEANE AND ThE L OwRY
 “ Ro BINSo N KEANE SpENT A lo T of TIME IN THE EARly STAGES of THE 
ASSIGNMENT REAlly GETTING To GRIpS w ITH ou R REQuIREMENTS, 
Bo TH IN TERMS of p ERSo N SpECIf ICATIo N ANd Cul Tu RAl f IT. 
fR o M THE f IRST MEETING, THEy GAvE ME Co Nf IdENCE THAT THEy 
would dElIvER.”
 Julia Fawcett 
 Chief Executive 
 The Lowry
Kellan Group plc Annual report and accounts 2007 09 10 Kellan Group plc Annual report and accounts 2007
Employees continued
To this end we are investing heavily in our 
people through the creation of a dedicated 
internal recruitment team and the growth 
of our learning and development capabilities. 
Through this HR capability, we will focus 
extensively on the entire life cycle of our staff 
from recruitment through to on‑ boarding, 
training, management and leadership 
development and ultimately the retention 
of what we hope will be some of the best 
talent in the industry.
What is clear is that within Kellan Group there 
exists some of the most impressive leaders 
and consultants I have seen in my 20+ years 
in this industry. It is crucial that we give them, 
and others who will join us, all the tools, 
career opportunities, development, recognition, 
reward and culture they will need to succeed.
Name change
In February 2008 we changed our name to 
the Kellan Group plc. Kellan is the Celtic word 
for ‘powerful’. The name was chosen after 
running an internal Group competition. Our 
staff were asked to suggest a name for the 
new parent company with an explanation for 
their choice. The winning entry was selected 
by the Kellan Group Main Board with the 
winner, Arisa Cairns (pictured to the left) 
enjoying a family holiday, fully paid for by 
the Company. 
STRATEGIC REvIEw
Strategy for growth 
Since joining the Group, the Board and I have 
been focusing on driving sales growth as well 
as creating efficiencies that will ultimately 
generate cost savings and improved margins 
for the Group. We are still on track with our 
expansion plans through organic growth and 
the acquisition of complementary recruitment 
consultancy businesses which will allow 
us to diversify into new markets. 
Kellan Group benefits from a strong 
management team with extensive industry 
experience. Our Co‑ Chairmen have a combined 
65 years of recruitment industry experience 
and more critically, given the Group’s strategy, 
they have both successfully undertaken 
numerous mergers and acquisitions including 
several of the largest deals ever undertaken 
in the industry. As CEO of Hudson UK 
and Ireland, I presided over an 800 person 
business which demonstrated a significant 
profit growth, delivering a six fold increase 
in operating profit in a 3 year period. Will Coker 
possesses an excellent track record, qualifying 
with Price Waterhouse followed by a number 
of years in blue‑ chip environments. He joined 
Kellan in 2005, shortly after its IPO 
as Berkeley Scott Group. 
We see the management team’s past 
experience and successful track record 
as a key competitive advantage and crucial 
in being able to deliver ever‑increasing value 
to our businesses and to our shareholders.
Business review: Chief Executive Officer’s report
Arisa Cairns based in RK Altrincham
winner of the BSG name change competition.  RK ACCOu NTANCY AND MYTRAvEL
 “ RK ACCou NTANCy HAv E A full u NdERSTANdING of THE Cul TuRE 
ANd pERSo NAl ITy f IT REQu IREd fo R ou R o RGANISATIo N. THEy 
HAv E Alw Ay S BEEN pRo ACTIv E, SHow ENTHu SIASM ANd off ER 
AN Eff ICIENT ANd Ho NEST SERv ICE. oN A pERSo NAl l Ev El I HAv E 
Alw AyS fouNd THE CoNSul TANTS To BE polITE , pRofESSIoNAl ANd 
woRK w ITH A f IRST Cl ASS wo RK ETHIC. I Alw AyS f EEl w E ARE TREATEd 
w ITH Top p RIo RITy ANd GIvEN A fIRST ClASS SERvICE .”
 Catherine hobden 
 Co‑ ordinator 
 MyTravel
MyTravel is a strong household name 
and every year MyTravel provides 
thousands of customers with holidays, 
city breaks and flights from over 20 uK 
airports to hundreds of world‑wide 
destinations as well as cruises too. 
MyTravel has grown considerably over 
the last few years and in 2007 merged 
with Thomas Cook to increase strength 
in the market place. To assist with 
these developments MyTravel Airways 
needed to bring onboard a consultancy 
who would relish the challenge and 
support them thought this period of 
change which affected their finance 
function and headcount. The 
relationship with RK Accountancy 
has developed considerably over the 
last few years as MyTravel Airways’ 
needs have increased resulting in 
the two parties working hand‑ in‑ hand 
together on vacancies at all levels. 
Regardless of MyTravel Airways 
requirements, RK Accountancy were 
required to step up to the plate and 
provide an efficient and effective 
service whether it be clerical or 
senior on both a temporary and 
permanent basis.
Kellan Group plc Annual report and accounts 2007 11 12 Kellan Group plc Annual report and accounts 2007
This review presents key elements of Kellan 
Group’s financial performance and expands 
upon key features of the financial statements 
set out on pages 21 to 44.
Non‑recurring costs
The Group recorded non‑recurring costs of 
£891,000 (2006: £73,000) during the period. 
£646,000 of this related to termination and 
restructure charges highlighted in the interim 
accounts at 31 March 2007. A further £245,000 
related to onerous property costs associated 
with our declared strategy of property 
rationalisation. Although significant progress 
has been made in our restructuring activity, 
the process is ongoing as we strive to further 
rationalise our cost base and extract 
further efficiencies.
Synergies from acquiring Quantica
Immediately, upon completion of the Quantica 
acquisition, around £1m worth of annualised 
cost savings were realised, mostly through 
duplicated Board costs and the costs associated 
with Quantica having been a public company. 
Further savings totalling £0.1m have already 
been identified through areas such as procuring 
group‑wide insurance and the consolidation 
of our learning and development capabilities 
and subsequent creation of a group training 
department. Further efficiencies have been 
identified in our property portfolio, with 
consolidation of our 5 properties in Leeds 
into one office planned for the second half 
of 2008 and consolidating three offices 
in Manchester into 2 in July 2008. We continue 
to look for efficiencies and consolidation 
opportunities and expect total synergies and 
efficiencies to total in excess of £1.3m by 2009.
International f inancial Reporting 
Standards (“IfRS”)
The consolidated accounts are presented 
for the first time under IFRS as adopted by 
the EU. An exercise was conducted to assess 
what areas would be affected by such a 
move. The accounts of the holding Company, 
Kellan Group plc continue to be reported 
under UK GAAP .
In the main, the most noticeable impact 
to the annual report and accounts is in the 
amount of disclosure required compared to 
previous years in the notes to the accounts. 
Notwithstanding this additional disclosure, 
there are financial impacts in reporting our 
current period results as follows:
I  Historic goodwill balances brought forward 
from Berkeley Scott acquisitions were 
previously amortised under UK GAAP . 
On transition to IFRS the Group has taken 
advantage of the exemption under IFRS 1 
to fix the value of goodwill at its book value 
at the date of transition, being £2,518,000 
on 1 October 2005. From this point onwards 
the balance will not be amortised, but will 
be subject to annual impairment testing. 
I  under IFRS any acquisition requires 
quantification of intangibles that ascribe to 
the business being purchased. Consequent 
to the acquisition of Quantica plc we 
recognised intangibles other than goodwill 
of £4,531,000 which are, and will be subject 
to an annual amortisation charge.
I  The intangible valuation required recognition 
of a corresponding deferred tax liability 
of £1,269,000 under IFRS. This liability will 
be released over the corresponding period 
of amortisation of the intangibles.
I  The Group entered into an interest rate 
collar arrangement in protecting its exposure 
to interest rates on loans it raised in 
acquiring Quantica plc. u nder IFRS such 
instruments are required to be recorded 
at fair value with any changes from one 
accounting period to the next being recorded 
in the Income Statement. The 2007 income 
statement has a charge of £37,000 
in respect of this treatment.
Monitoring, risk and KpIs
Risk management is an important part of the 
management process throughout the Group. 
The composition of the Kellan Group plc 
Board is structured to give balance and 
expertise when considering governance, 
financial and operational recruitment issues. 
Meetings incorporate, amongst other agenda 
items, a review of monthly management 
accounts, operational and financial KPIs and 
major issues and risks facing the business. 
An analysis of the KPIs has not been presented 
due to the misleading impact of the acquisition 
and the extended accounting period.
The principal risks faced by the Group 
are considered to be:
I  Market The Group operates in a dynamic 
market place, and constantly seeks to 
ensure the solutions it offers to customers 
are completive. Whilst to some degree, 
unpredictable sector downturns are difficult 
to mitigate, the Company has a stated 
strategy of operating in multiple sectors 
and offers temporary or contractor offerings 
where possible alongside that of permanent 
recruitment to mitigate downturns in any 
one market. 
I  operational The Group’s most significant 
asset is its employees and the market 
for skilled staff is competitive. Recruiting, 
retaining, developing and motivating staff 
remain a constant challenge. The Group 
maintains a number of initiatives, referred 
to in the Chief Executive’s report, to 
contain staff turnover, the main KPI 
against which it monitors this risk. 
Business review: Chief Financial Officer’s report
Summary
I  Following Kellan Group’s year end change 
to December, the 2007 results are stated 
for the 15 month period ending 
31 December 2007.
I  The consolidated accounts are presented 
for the first time under IFRS.
I  £1.1m of synergies identified 
and substantially implemented.
I  Improved gearing profile from 128.7% 
to 18.4%.
I  Significant progress made on restructuring 
and the process is ongoing.   RK suPPLY ChAIN AND 
ROYAL & suNALLIANCE INsuRANCE
 “ I would RECoMMENd RK Supply CHAIN wITHouT HESITATIoN 
AS THEy offER A pRofESSIoNAl, THoRouGH , SuppoRTIvE 
ANd pERSoNAl SERvICE .”
 Jodi Black 
 Director, Procurement & Strategic Sourcing 
 Royal & SunAlliance Insurance
“I first worked with RK Supply Chain 
in 2003 when I was working as the 
Purchasing Manager at Elmers 
Products. I used RK to recruit a 
purchasing coordinator and I found 
that the service I received from them 
was fantastic. They came to visit me 
and really took the time to understand 
what I was looking for so that the 
CVs they sent through to me and 
the candidates I interviewed all fitted 
the brief perfectly. The quality of the 
people they sent forward was also 
excellent and saved me vasts 
amount of time wading through 
inappropriate CVs and interviewing 
totally unsuitable candidates. I went 
on to hire a total of 6 people from 
RK over the following two years. 
I used them solely as they really 
understood me and what I was 
looking for and filled my positions 
every time. They were also honest, 
a trait I find rare in companies today. 
I also recommended them to a number 
of colleagues in Elmers and I believe 
that in total we recruited in excess 
of 13 people into the Company in 
just under two and a half years. 
In late 2005 I left Elmers and 
immediately went to RK to see 
if they could help me find a job. 
Their understanding of me and 
my previous roles made them the 
perfect Company to help me find a 
suitable position that would enable 
me to continue on my chosen career 
path. The jobs they discussed with 
me matched my criteria and in 
February 2006 I was lucky enough 
to secure the position of Director of 
Strategic Sourcing at the Royal & 
SunAlliance through RK. Needless 
to say when I needed to start hiring 
into my team, the first Company 
I called was RK Supply Chain who 
once again did an excellent job in 
sourcing me the perfect candidates 
for the role. 
In my position I have a large number 
of people calling me continuously 
to sell me their services. I would 
recommend RK Supply Chain 
without hesitation as they offer a 
professional, thorough, supportive 
and personal service.”
Jodi Black
Director, Procurement 
& Strategic Sourcing
Royal & SunAlliance Insurance
Kellan Group plc Annual report and accounts 2007 13 14 Kellan Group plc Annual report and accounts 2007
Monitoring, risk and KpIs continued
I  Acquisition The Group continues to seek 
to acquire businesses that complement 
its existing activities, as well as similar 
businesses in new markets. Such a 
strategy has inherent risks in both valuing 
target businesses and successfully 
integrating them within the existing Group. 
The Group adopts a rigorous due diligence 
and assessment process prior to pursuing 
any potential acquisition. 
I  f inancial The main financial risks arising 
from the Company’s activities are credit 
risk, interest rate risk and liquidity risk. 
These are monitored by the board 
of directors.
  The Company’s policies in respect of credit 
risk require appropriate credit checks on 
potential customers before sales are made, 
the appropriate limiting of credit to each 
customer and the close monitoring of KPI 
trending such as Days Sales Outstanding 
and debtor ageing. 
  The Group’s policy in respect of liquidity 
risk is to maintain a mixture of long term 
and short term debt finance, including 
an invoice discounting facility, to ensure 
the Company has sufficient funds for 
operations. Although a significant proportion 
of its senior debt is protected against 
interest rate movements through an 
interest rate collar instrument, some 
debt is maintained at bank variable rates 
which inherently bring interest rate risk. 
The Company maintains detailed cash flow 
forecasts enabling it to factor, amongst 
other things, incremental changes in 
interest rates into its risk profile and 
liquidity and react accordingly.
  The treasury function is not a profit centre 
and all activities are undertaken primarily 
to support the underlying exposures faced 
by the operating companies. The Group 
does not enter into speculative treasury 
arrangements and there are no significant 
balances or exposures denominated 
in foreign currencies.
Cash flow and financing
Net cash outflow from operating activities 
was £3,454,000 (2006: £564,000 inflow).
Current period outflows include the 
non‑recurring costs in Berkeley Scott Ltd 
(£646,000) as well as settlement of Quantica’s 
2006 tax liability (£336,000) and costs 
that crystalised in Quantica on the 
acquisition (£2,022,000).
The net cash outflow in respect of 
acquisitions and disposals was £7,792,000 
(2006: £353,000). The main cash outflow 
related to the consideration paid for 
Quantica net of cash acquired.
Cash inflow from financing was £12,454,000 
(2006: £692,000 outflow). 
The net increase in cash in the period was 
£1,208,000 (2006: £481,000 outflow).
As a result of the refinancing initiatives the 
Group has significantly improved its gearing 
profile (face value of loans and borrowings, 
£5,253,000 (2006: £2,773,000) as a percentage 
of total equity, £28,515,000 (2006: £2,155,000)) 
to 18.4% from 128.7%.
f inancial income and expenses
The financial expenses for the period of 
£538,000 (2006: £311,000) comprise interest 
and amortised loan costs in respect of bank 
loans, confidential invoice discounting facilities, 
overdrafts and a charge for the fair value of 
the interest rate collar instrument. Charges are 
partially offset by financial income (interest) 
of £56,000 (2006: £3,000).
Tax
The Group’s underlying tax charge was 
a £32,000 credit relating to the release 
of £32,000 in respect of deferred tax on the 
intangible amortisation. It is anticipated that 
the Group’s ongoing rate will be broadly in 
line with the standard rate of corporation tax, 
subject to its ability to utilise tax losses brought 
forward and temporary timing differences.
l oss per share
Basic loss per share increased to 5.4p 
(2006: loss of 2.4p).
Options held in respect of the ordinary shares 
of the Company do not have a dilutive effect 
on the loss per share calculation.
Business review: Chief Financial Officer’s report 15 Kellan Group plc Annual report and accounts 2007
Business review: Chief Financial Officer’s report
outlook 
We believe that the prospects for Kellan Group 
over the next few years are very bright. The 
repository of sector knowledge that exists 
within the business, coupled with the merger 
and acquisition experience, is a potent mix 
that we fully intend to exploit. We also believe 
that the Group’s portfolio has significant 
untapped potential. The year ahead looks very 
exciting and the first quarter of 2008 has 
begun well. 
We will continue the consolidation of the back 
office support functions which will ensure 
that we offer a robust, scaleable and cost 
effective service to the business. This also 
facilitates our ability to share information 
and best practice regarding the ever changing 
issues and opportunities created by 
employment legislation, health and safety 
and environmental factors. 
We expect clear and measurable financial 
improvements in the combined Group 
through the strengthened management team, 
centralised back office systems, consolidation 
of offices across the country and the cross 
selling opportunities available. Our investment 
in people, IT and operational best practice 
ensures we have the capability to make the 
most of the growth opportunity available to us. 
Overall the quality and strength of our 
individual operations continues to improve 
and we aim to build on these strengths to 
drive further profitability for the Group as we 
continue on the growth journey we have set 
ourselves. Our future objectives are clear. 
We aim to have a professional recruitment 
focused business with strong brands in niche 
sectors, scalable businesses and high margins.
However, strategies and goals, change 
management, first class support areas and 
a raising of the bar cannot, by themselves, 
deliver the kind of growth and transformation 
that Kellan Group is experiencing and that 
we expect to continue to deliver in the future. 
Only our people can do that and we are 
committed to building a Group which can 
develop individuals and enhance careers. 
We remain very confident about the future 
of the Group and delivering results to our 
shareholders at the same time as fostering 
a great supportive working environment 
for all our employees.
John Rose  will Coker 
Chief Executive Officer Chief Financial Officer
28 March 2008 28 March 2008
Business review: outlook 16 Kellan Group plc Annual report and accounts 2007
Board of directors
1. Tony Reeves – R,A
Non‑Executive Co‑Chairman
Tony Reeves has over 45 years’ experience 
in the recruitment sector, most recently 
as chairman and chief executive officer of 
Hotgroup plc from 2002 until its acquisition 
by Trinity Mirror Group plc in September 2005. 
Prior to that Tony was chairman and chief 
executive officer of the Delphi Group plc until 
its acquisition by Adecco SA in 1998. He is 
also a private investor in various early stage 
companies. Before joining Delphi Group plc, 
Tony was chairman, president and chief 
executive officer of Lifetime Corporation, 
which was then a public Company listed 
on the New York Stock Exchange.
2. John Bowmer – R,A
Non‑Executive Co‑Chairman
John is the former chairman of Swiss quoted 
Adecco SA, the world’s largest staffing 
Company where he was chief executive 
officer from its formation in 1996, through 
the merger of Ecco and Adia, to 2002. Prior 
to this, between 1992 and 1996 he was chief 
executive officer of Adia and between 1987 
and 1992 he served in a variety of executive 
positions at Adia in the UK, Asia, Australia 
and the US. Previously, Mr Bowmer held a 
range of management positions in marketing 
and finance at companies including MAI plc, 
a financial services and media organisation 
and Polaroid (UK) Ltd. He is an investor in, and 
adviser to, several private equity companies 
in the US. He was a director of CP Ships from 
its flotation on the New York Stock Exchange 
in 2001 until its disposal to TUI AG at the end 
of 2005. In 2007 he became a non‑executive 
director of Hireright Inc, a NASDAQ quoted 
employment screening Company.
3. John Rose
Chief Executive Officer
John has 20 years experience of the recruitment 
industry. An accountancy graduate, his early 
career was in sales before entering the 
recruitment industry with Harrison Willis in 1987. 
John has worked in management roles since 
1993; he was a senior manager at HW Group 
through its IPO in 1998 and a divisional 
Managing Director when it was subsequently 
sold to TMP (now Monster Worldwide) in 
2000. Initially MD of TMP’s Financial and IT 
recruitment businesses in the UK, he was 
promoted to uK COO when Hudson (Nasdaq: 
HHGP) was demerged from TMP in 2003. 
In 2004 he was made CEO of Hudson UK and 
Ireland with responsibility for a multi‑functional 
recruitment business of some 800 staff. 
John joined Berkeley Scott in May 2007 
as Chief Executive Officer.
4. will Coker
Chief Financial Officer
Will Coker qualified as a Chartered 
Accountant with Price Waterhouse in London 
before moving to the BOC Group in 1993 
as Audit Manager. In 1996 Will was seconded 
to Ohmeda Australia, BOC’s Australian 
healthcare business, as Finance & Operations 
Director before moving to Thomas Cook/
Travelex Australia in 1999 as Financial Controller. 
Recruited in 2002 by Philips Medical Systems 
Australasia as Finance Director, he was involved 
in a series of acquisitions, and a bottom line 
turnaround of $6 million from loss making to 
sustainable profitability. Will returned to the 
UK in 2004 after eight years in Australia. He 
joined Berkeley Scott in March 2005 and in 
April 2005 he became Chief Financial Officer.
5. Michael Jackson – R,A
Non‑Executive director
Michael Jackson founded Elderstreet 
Investments Limited in 1990 and is its 
executive chairman. For the past 20 years, 
he has specialised in raising finance and 
investing in the smaller companies sector. 
Mr Jackson is chairman of PartyGaming plc 
and until August 2006 was chairman of 
FTSE100 Company, The Sage Group plc. 
He is also a director and investor in many 
other quoted and unquoted companies, 
including Netstore plc and Computer 
Software Group plc. Mr Jackson studied 
law at Cambridge university, and qualified 
as a chartered accountant with Coopers 
and Lybrand before spending five years 
in marketing for various US multinational 
technology companies.
1
2
3
4
5 17 Kellan Group plc Annual report and accounts 2007
Advisers, financial calendar and shareholder information
Advisers
Broker/Nomad
Daniel Stewart & Company plc 
Becket House 
36 Old Jewry 
London EC2R 8DD
Bank
Barclays Bank plc 
1 Churchill Place 
London E14 5HP
Auditor
BDO Stoy Hayward LLP 
Connaught House 
Alexandra Terrace 
Guildford 
Surrey Gu1 3DA
f inancial pR
Brunswick Group LLP 
16 Lincoln’s Inn Fields 
London WC2A 3ED
Solicitor/Company Secretary
Irwin Mitchell/IMCO Secretary Ltd 
21 Queen Street 
Leeds LS1 2TW
Registrar
Capita Registrars 
Northern House 
Woodsome Park 
Fenay Bridge 
Huddersfield 
West Yorkshire HD8 0LA
Registered office
Berkeley House 
11–13 Ockford Road 
Godalming 
Surrey GU7 1QU
Registered number
2228050
Major Shareholders (as of 1 f ebruary 2008) Amount % Holding
Gartmore Investment Limited  11,757,844 13.50 
A H Reeves 8,802,251 10.11 
J P Bowmer 8,802,251 10.11 
Progressive Asset Management 8,729,625 10.02 
AXA Framlington Investment Management 6,562,223 7.54
f inancial Calender
Next Annual General Meeting  19 May 2008 at 11–13 Ockford Road, Godalming  
 Surrey GU7 1QU 
Next interim announcement  September 2008 (covering 6 months to June 2008) 
Next year end  31 December 2008
Shareholder information
AGM details
The Company’s last AGM was held on 
28 March 2007 at the Company’s Head Office 
in Godalming. All six Ordinary resolutions and 
the one Special resolution listed in the Annual 
Report and Accounts for the year ended 
30 September 2006 were passed unanimously.
l ondon Stock Exchange
The ordinary shares of the Company are 
traded on the Alternative Investment Market 
of the London Stock Exchange with the 
code KLN.L.
website
The Group operate a website which can 
be found at www.kellangroup.co.uk. This site 
is regularly updated to provide information 
about the Group. In particular, all of the Group’s 
press releases and announcements can 
be found on this site. 18 Kellan Group plc Annual report and accounts 2007
Report of the directors
for the period ended 31 December 2007
The directors present their report together with the audited financial statements for the period ended 31 December 2007.
Results and dividends
The results of the Group for the period are set out on page 21 and show a loss for the period of £1,762,000 (2006: loss of £201,000). 
The directors do not propose the payment of a dividend on the ordinary shares (2006: £nil).
Change in accounting reference date
On 12 October 2007 the Company changed its accounting reference date from 30 September to 31 December.
Principal activities 
The Kellan Group plc (“the Group” or “the Company” or “Kellan”), is a market leading recruitment business operating across a wide range 
of functional disciplines and industry sectors. The Company joined AIM in December 2004.
Business Review 
Please refer to pages 4 to 15 for the trading results and operational review of the business.
Monitoring, risk and KPI’s
Please refer to pages 12 to 14.
Post balance sheet events
Following an EGM on 18 February 2008, the Company changed its name from The Berkeley Scott Group plc to The Kellan Group plc.
On 28 January 2008 share options were granted to directors of the Company as follows:
JP Bowmer  1,741,727 granted at 40.0p Expiring 27 January 2018 
AH Reeves 1,741,727 granted at 40.0p Expiring 27 January 2018 
ME Jackson 870,863 granted at 40.0p Expiring 27 January 2018 
WJ Coker 400,002 granted at 24.5p Expiring 27 January 2018
In the opinion of the directors, there were no further events constituting a requirement of disclosure between the balance sheet date and 
the date of these accounts.
Future developments
Please refer to the Co‑Chairmans’ statement on page 2 for a review of future developments.
Policy on the payment of creditors
It is the Group’s intention to settle suppliers’ invoices according to the stated and agreed credit terms. At the period end the number of days’ 
credit taken from suppliers by the Group was 38 (2006: 44).
Corporate social responsibility
The Company has published its policies on employees, health and safety and the environment on the Investor Relations page of the Group’s 
website. Please visit www.kellangroup.co.uk for details.
Corporate Governance 
The Company has published its policies on Corporate Governance on the Investor Relations page of the Group’s website. Please visit 
www.kellangroup.co.uk for details.
Charitable and political contributions
During the period, the Group made charitable donations of £10,910 (2006: £8,072). There were no political contributions.
Employees
The Group has a policy of involving employees in its affairs where possible and creating the opportunity for senior members to explain 
to employees matters which affect the Group’s performance. The Group practices equality of employment opportunities irrespective of sex, 
race, creed or colour and recruits, trains and promotes on merit accordingly. Throughout the Group where practicable, opportunities are taken 
to employ disabled people and to ensure that they take part in training and career development. 
Directors
The directors of the Company during the period were as follows:
WJ Coker  
DRB Watt – resigned 30 January 2007 
JP Bowmer – appointed 30 January 2007 
AH Reeves – appointed 30 January 2007 
ME Jackson – appointed 30 January 2007 
JI Rose  – appointed 15 May 2007 19 Kellan Group plc Annual report and accounts 2007
Remuneration 
Remuneration and benefits received during the 15 months ended 31 December 2007, for those directors of the Company at 31 December 2007, 
were as follows: 
      Outstanding    
   Gross salary   share options at    
   incl. car Benefits Directors’ 31 December Exercise   
   allowance  incl. bonus fees 2007 price   
   £ £ £ Number £  Expiry date
JP Bowmer   18,487 — — — —  —
AH Reeves   18,487 — — — —  —
ME Jackson   — — 13,750 — —  —
JI Rose   126,000 12,800 — 1,140,216 0.560  1 May 2017
WJ Coker   134,000 53,900 — 50,000 0.325  9 September 2015
      50,000 0.255  15 December 2015
The table above excludes an amount of £225,000 in respect of a director who resigned during the year and excludes amount in respect of share 
based payments for all directors of £296,000.
Statement of directors’ responsibilities
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position 
of the group, for safeguarding the assets of the company, for taking reasonable steps for the prevention and detection of fraud and other 
irregularities and for the preparation of a Directors’ Report which complies with the requirements of the Companies Act 1985.
The directors are responsible for preparing the annual report and the financial statements in accordance with the Companies Act 1985. 
The directors have chosen to prepare financial statements for the group in accordance with International Financial Reporting Standards as 
adopted by the European Union (IFRS) and the rules of the London Stock Exchange for companies trading securities on the Alternative 
Investment Market. The directors have chosen to prepare financial statements for the company in accordance with UK Generally Accepted 
Accounting Practice.
Group financial statements
International Accounting Standard 1 requires that financial statements present fairly for each financial year the group’s financial position, financial 
performance and cash flows. This requires the faithful representation of the effects of transactions, other events and conditions in accordance 
with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the International Accounting Standards 
Board’s ‘Framework for the preparation and presentation of financial statements’. In virtually all circumstances, a fair presentation will be 
achieved by compliance with all applicable IFRS. A fair presentation also requires the Directors to:
I consistently select and apply appropriate accounting policies;
I present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; and
I  provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand 
the impact of particular transactions, other events and conditions on the entity’s financial position and financial performance. 
Parent company financial statements
Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs 
of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
I select suitable accounting policies and then apply them consistently;
I prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. 
I make judgements and estimates that are reasonable and prudent; and
I  state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the 
financial statements.
Financial statements are published on the group’s website in accordance with legislation in the United Kingdom governing the preparation 
and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the group’s 
website is the responsibility of the directors. The directors’ responsibility also extends to the ongoing integrity of the financial statements 
contained therein. 
Auditors
Each individual director has taken all the steps necessary to make themselves aware of any information needed by the Company’s auditors 
for the purposes of their audit and to establish that the auditors are aware of that information. The directors are not aware of any relevant audit 
information to which the auditors are unaware. 
BDO Stoy Hayward LLP have expressed their willingness to continue in office and a resolution to reappoint them will be proposed at the 
Annual General Meeting.
On behalf of the Board
Will Coker
28 March 2008 20 Kellan Group plc Annual report and accounts 2007
To the shareholders of Kellan Group plc
We have audited the Group and parent company financial statements (the ‘’financial statements’’) of Kellan Group plc for the 15 months 
ended 31 December 2007 which comprise the consolidated income statement, the consolidated and parent company balance sheets, 
the consolidated cash flow statement, the consolidated statement of change in equity and the related notes. These financial statements 
have been prepared under the accounting policies set out therein.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual Report and the Group financial statements in accordance with applicable law and 
International Financial Reporting Standards (IFRS) as adopted by the European Union, and for preparing the parent company financial 
statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting 
Practice) are set out in the statement of directors’ responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards 
on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and have been properly prepared in accordance 
with the Companies Act 1985 and whether the information given in the directors’ report is consistent with those financial statements. We also 
report to you if, in our opinion, the Company has not kept proper accounting records, if we have not received all the information and explanations 
we require for our audit, or if information specified by law regarding directors’ remuneration and other transactions is not disclosed. 
We read other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. The other 
information comprises only the directors’ report, the Co‑Chairmans’ statement and the business review. We consider the implications for our 
report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities 
do not extend to any other information.
Our report has been prepared pursuant to the requirements of the Companies Act 1985 and for no other purpose. No person is entitled to 
rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of the Companies Act 1985 
or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any 
other person or for any other purpose and we hereby expressly disclaim any and all such liability.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. 
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes 
an assessment of the significant estimates and judgments made by the directors in the preparation of the financial statements, and of whether 
the accounting policies are appropriate to the Group’s and Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide 
us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused 
by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the 
financial statements.
Opinion
In our opinion:
I  the Group financial statements give a true and fair view, in accordance with IFRS as adopted by the European Union, of the state 
of the Group’s affairs as at 31 December 2007 and of its loss for the 15 months then ended;
I  the parent company financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting 
Practice, of the state of the parent company’s affairs as at 31 December 2007;
I the financial statements have been properly prepared in accordance with the Companies Act 1985; and
I the information given in the directors’ report is consistent with the financial statements.
BDO Stoy Hayward LLP
Chartered Accountants and Registered Auditors
Guildford
28 March 2008
Report of the independent auditors 21 Kellan Group plc Annual report and accounts 2007
         15 months 12 months 
        ended ended  
        31 Dec 2007 30 Sep 2006 
       Note £000 £000
Revenue        30,275 17,977
Cost of sales        (15,294) (8,390)
Gross profit        14,981 9,587
Administrative expenses        (16,293) (9,481)
Operating (loss)/profit       2 (1,312) 106
Financial income       6 56 3
Financial expenses       6 (538) (311)
Loss before tax       4 (1,794) (202)
Tax credit       7 32 1
Loss for the period        (1,762) (201)
Attributable to:   
Equity holders of the parent        (1,762) (201)
Loss per share in pence
(basic and diluted)       8 (5.4) (2.4)
The above results relate to continuing operations.
The notes on pages 25 to 39 form part of these financial statements.
Consolidated income statement
for the 15 months ended 31 December 2007 22 Kellan Group plc Annual report and accounts 2007
        31 Dec 2007 30 Sep 2006 
       Note £000 £000
Non‑current assets
 Property, plant and equipment       9 833 808
 Intangible assets       10 29,407 2,518
        30,240 3,326
Current assets
 Trade and other receivables       12 10,572 3,343
 Cash and cash equivalents       13 692 3
        11,264 3,346
Total assets        41,504 6,672
Current liabilities   
 Bank overdraft       13 73 592
 Other loans and borrowings        14 1,692 1,964
 Trade and other payables       15 6,186 1,744
 Corporation tax payable        378 —
 Other financial liabilities        37 —
 Provisions       17 45 —
        8,411 4,300
Non‑current liabilities   
 Other loans and borrowings       14 3,141 217
 Provisions       17 200 —
 Deferred tax liabilities       11 1,237 —
        4,578 217
Total liabilities        12,989 4,517
Net assets        28,515 2,155
Equity attributable to equity holders of the parent
 Share capital       18 1,742 170
 Share premium       19 13,740 3,572
 Merger reserve       19 16,081 —
 Capital redemption reserve       19 2 2
 Retained earnings        (3,050) (1,589)
Total equity        28,515 2,155
These financial statements were approved by the Board of directors on 28 March 2008 and were signed on its behalf by:
John Rose Will Coker
Director Director
Consolidated balance sheet
at 31 December 2007 23 Kellan Group plc Annual report and accounts 2007
       Capital   
    Share Share Merger redemption Retained Total 
    capital premium reserve reserve earnings equity 
   Note £000 £000 £000 £000 £000 £000
Balance at 1 October 2005    170 3,572 — 2 (1,388) 2,356
Loss for the period    — — — — (201) (201)
Total recognised income and expense for the period   — — — — (201) (201)
Balance at 30 September 2006    170 3,572 — 2 (1,589) 2,155
Balance at 1 October 2006    170 3,572 — 2 (1,589) 2,155
Loss for the period    — — — — (1,762) (1,762)
Total recognised income and expense for the period   — — — — (1,762) (1,762)
Issue of ordinary shares   18 1,549 11,302 16,081 — — 28,932
Exercise of warrants   18  23 178 — — — 201
Share issue costs    — (1,312) — — — (1,312)
Share based payment charge   16 — — — — 301 301
Balance at 31 December 2007    1,742 13,740 16,081 2 (3,050) 28,515
Consolidated statement of changes in equity
for the 15 months ended 31 December 2007 24 Kellan Group plc Annual report and accounts 2007
         15 months 12 months  
        ended ended  
        31 Dec 2007 30 Sep 2006 
       Note £000 £000
Cash flows from operating activities
Loss for the period        (1,762) (201)
 Adjustments for:   
 Depreciation and amortisation        522 294
 Financial income        (56) (3)
 Financial expense        538 311
 Loss on sale of property, plant and equipment       63 3
 Equity settled share‑based payment expenses       301 —
 Taxation        (32) (1)
        (426) 403
 (Increase)/decrease in trade and other receivables       (256) 281
 (Decrease)/increase in trade and other payables       (2,681) (121)
 Increase/(decrease) in provisions        245 —
        (3,118) 563
 Tax (paid)/receivable        (336) 1
Net cash (outflow)/inflow from operating activities       (3,454) 564
Cash flows from investing activities   
 Proceeds from sale of property, plant and equipment       5 1
 Interest received        56 3
 Acquisition of subsidiary, net of cash acquired      3 (7,592) —
 Acquisition of property, plant and equipment       (261) (357)
Net cash from investing activities        (7,792) (353)
Cash flows from financing activities
 Proceeds from the issue of share capital, net of issue costs      10,956 —
 Proceeds from new loan        4,200 —
 Decrease in invoicing discounting balances        (1,512) (233)
 Interest paid and loan costs        (847) (306)
 Repayment of borrowings        (316) (100)
 Payment of the capital element of finance lease liabilities      (26) (48)
 Payment of the interest element of finance lease liabilities      (1) (5)
Net cash from financing activities        12,454 (692)
 Net increase/(decrease) in cash and cash equivalents       1,208 (481)
 Cash and cash equivalents at the beginning of the period      (589) (108)
Cash and cash equivalents at the end of the period      13 619 (589)
Consolidated cash flow statement
for the 15 months ended 31 December 2007 25 Kellan Group plc Annual report and accounts 2007
1 Accounting policies
Kellan Group plc (the “Company”) is a public limited Company incorporated in the UK. 
The Group financial statements consolidate those of the Company and its subsidiaries (together referred to as the “Group”). The parent 
company financial statements present information about the Company as a separate entity and not about its Group.
The Group financial statements have been prepared and approved by the directors in accordance with International Financial Reporting 
Standards as adopted by the EU (“Adopted IFRS”). An explanation of how the transition to IFRS has affected the reported financial position, 
financial performance and cash flows of the Group is provided in note 25. The Company has elected to prepare its parent company financial 
statements in accordance with UK GAAP; these are presented on pages 40 to 44.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these Group financial 
statements and in preparing an opening IFRS balance sheet at 1 October 2005 for the purposes of the transition to Adopted IFRS. The accounting 
policies have been applied consistently by Group entities.
Transition to Adopted IFRS
The Group is preparing its financial statements in accordance with Adopted IFRS for the first time and consequently has applied IFRS 1. 
The Group has made estimates under IFRS at the date of transition, which are consistent with those estimates made for the same date under 
UK GAAP unless there is objective evidence that those estimates were in error, i.e. the Group has not reflected any new information in its 
opening IFRS balance sheet but reflected that new information in its income statement for subsequent periods. An explanation of how the 
transition to Adopted IFRS has affected the reported financial position, financial performance and cash flows of the Group is provided in note 25.
In addition to exempting companies from the requirement to restate comparatives for IAS 32 and IAS 39, IFRS 1 grants certain exemptions from 
the full requirements of Adopted IFRS in the transition period. The following exemptions have been taken in these financial statements:
I Business combinations – Business combinations that took place prior to 1 October 2005 have not been restated.
I  Share based payments – IFRS 2 is being applied to equity instruments that were granted after 7 November 2002 and that had not vested 
by 1 October 2005. 
Concurrently with the transition to IFRS, a review was performed in respect of the classification of costs within the Income Statement. 
Consultants and operating staff costs are now included in administrative expenses in accordance with industry practice whereas historically 
these were included in cost of sales. The effect of the reclassification on the comparatives was an increase in Gross profit of £5,428,000.
Measurement convention
The financial statements are prepared on the historical cost basis except that the following assets and liabilities are stated at their fair value: 
derivative financial instruments, financial instruments classified as fair value through the profit or loss or as available‑for‑sale. Non‑current assets 
and disposal Groups held for sale are stated at the lower of previous carrying amount and fair value less costs to sell.
Basis of consolidation
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern the financial and 
operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that are currently exercisable 
or convertible are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the 
date that control commences until the date that control ceases.
Foreign currency
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities 
denominated in foreign currencies at the balance sheet date are translated at the foreign exchange rate ruling at that date. Foreign exchange 
differences arising on translation are recognised in the income statement. Non‑monetary assets and liabilities that are measured in terms of 
historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non‑monetary assets and liabilities 
denominated in foreign currencies that are stated at fair value are translated at foreign exchange rates ruling at the dates the fair value 
was determined.
Classification of financial instruments issued by the Group
Following the adoption of IAS 32, financial instruments issued by the Group are treated as equity only to the extent that they meet the following 
two conditions: 
(a)  they include no contractual obligations upon the Group to deliver cash or other financial assets or to exchange financial assets or financial 
liabilities with another party under conditions that are potentially unfavourable to the Group; and 
(b)  where the instrument will or may be settled in the Company’s own equity instruments, it is either a non‑derivative that includes no obligation 
to deliver a variable number of the Company’s own equity instruments or is a derivative that will be settled by the Company exchanging 
a fixed amount of cash or other financial assets for a fixed number of its own equity instruments.
To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where the instrument so classified takes 
the legal form of the Company’s own shares, the amounts presented in these financial statements for called up share capital and share 
premium accounts exclude amounts in relation to those shares. 
Finance payments associated with financial liabilities are dealt with as part of finance expenses. Finance payments associated with financial 
instruments that are classified in equity are treated as distributions and are recorded directly in equity.
Notes to the financial statements
(forming part of the financial statements) 26 Kellan Group plc Annual report and accounts 2007
1 Accounting policies continued
Property, plant and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Depreciation is charged 
to the income statement on a straight‑line basis over the estimated useful lives of each part of an item of property, plant and equipment. 
Land is not depreciated. The annual rates used are generally:
I motor vehicles and computer equipment 25%
I office equipment 10% – 33%
I short leasehold premises and improvements over the duration of the lease
Leases in which the Group assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. 
Where land and buildings are held under leases the accounting treatment of the land is considered separately from that of the buildings. 
Leased assets acquired by way of finance lease are stated at an amount equal to the lower of their fair value and the present value of the 
minimum lease payments at inception of the lease, less accumulated depreciation and impairment losses. Lease payments are accounted 
for as described below.
Goodwill
Goodwill represents amounts arising on the acquisition of subsidiaries. Subject to the transitional relief in IFRS 1, all business combinations are 
accounted for by applying the purchase method. In respect of business acquisitions that have occurred since 1 October 2005, goodwill represents 
the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired. Identifiable intangibles are those 
which can be sold separately or which arise from legal rights regardless of whether those rights are separable.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash‑generating units and is not amortised 
but is tested annually for impairment. 
IFRS 1 grants certain exemptions from the full requirements of Adopted IFRS in the transition period. The Group and Company elected not to 
restate business combinations that took place prior to 1 October 2005. In respect of acquisitions prior to 1 October 2005, goodwill is included 
at 1 October 2005 on the basis of its deemed cost, which represents the carrying value recorded under UK GAAP which was broadly comparable 
save that only separable intangibles were recognised and goodwill was amortised. Negative goodwill arising on an acquisition is recognised 
in profit or loss.
Externally acquired intangible assets
Intangible assets are recognised on business combinations if they are separable from the acquired entity or give rise to other contractual/legal 
rights. The amounts ascribed to such intangibles are arrived at by using appropriate valuation techniques (see section related to critical 
estimates and judgements below).
Amortisation is recognised in profit and loss on a straight‑line basis over the estimated useful lives of intangible assets, other than goodwill, 
from the date that they are available for use. 
The significant intangibles recognised by the Group, their useful economic lives and the methods used to determine the cost of intangibles 
acquired in a business combination are as follows:
Intangible asset Useful economic life Valuation method 
Brand name 10 years Relief from royalty method 
Customer relations 10 years Mean extended excess method
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part 
of the Group’s cash management are included as a component of cash and cash equivalents for the purpose only of the statement of cash flows.
Impairment excluding deferred tax assets
The carrying amounts of the Group’s assets, are reviewed at each balance sheet date to determine whether there is any indication 
of impairment. If any such indication exists, the asset’s recoverable amount is estimated. 
For goodwill, assets that have an indefinite useful life and intangible assets that are not yet available for use, the recoverable amount 
is estimated at each balance sheet date.
An impairment loss is recognised whenever the carrying amount of an asset or its cash‑generating unit exceeds its recoverable amount. 
Impairment losses are recognised in the income statement.
Impairment losses recognised in respect of cash‑generating units are allocated first to reduce the carrying amount of any goodwill allocated 
to cash‑generating units and then to reduce the carrying amount of the other assets in the unit on a pro rata basis. A cash generating unit is the 
smallest identifiable Group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or Groups 
of assets.
Provisions
A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event, 
and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are 
determined by discounting the expected, risk adjusted, future cash flows at a pre‑tax risk‑free rate. 
Borrowings
Borrowings are recognised initially at fair value, net of transaction cost incurred. Borrowings are subsequently stated at amortised cost: 
any difference between the proceeds and the redemption value is recognised in the income statement over the period of the borrowings using 
the effective interest method. No borrowing costs are capitalised as part of property, plant and equipment.
Notes to the financial statements continued
(forming part of the financial statements) 27 Kellan Group plc Annual report and accounts 2007
1 Accounting policies continued
Employee benefits
Defined contribution plans
Obligations for contributions to defined contribution pension plans are recognised as an expense in the income statement as incurred.
Share‑based payment transactions
The grant date fair value of options granted to employees is recognised as an employee expense, with a corresponding increase in equity, over 
the period in which the employees become unconditionally entitled to the options. The fair value of the options granted is measured using the 
Black Scholes option valuation model, taking into account the terms and conditions upon which the options were granted. The amount recognised 
as an expense is adjusted to reflect the actual number of share options that vest except where forfeiture is due only to share prices not 
achieving the threshold for vesting.
The fair value of the amount payable to employees in respect of share appreciation rights, which are settled in cash, is recognised as an expense, 
with a corresponding increase in liabilities, over the period in which the employees become unconditionally entitled to payment. The liability 
is remeasured at each reporting date and at settlement date. Any changes in the fair value of the liability are recognised as a personnel expense 
in profit or loss. 
The Group and Company took advantage of the option available in IFRS 1 to apply IFRS 2 only to equity instruments that were granted after 
7 November 2002 and that had not vested by 1 October 2005.
Revenue and income recognition
Revenue, which excludes value added tax (“VAT”), constitutes the value of services undertaken by the Group as its principal activities, 
which are recruitment consultancy and other ancillary services. These consist of:
I  revenue from temporary placements, which represents amounts billed for the services of temporary staff including the salary cost of these 
staff. This is recognised when the service has been provided;
I  revenue for permanent placements, which is based on a percentage of the candidate’s remuneration package, is recognised at the date an 
offer is accepted by a candidate and where a start date has been determined. A provision is made for possible cancellations of placements 
prior to, or shortly after, the commencement of employment; and
I  revenue from amounts billed to clients for expenses incurred on their behalf (principally advertisements) is recognised when the expense 
is incurred.
Expenses
Operating lease payments
Payments made under operating leases are recognised in the income statement on a straight‑line basis over the term of the lease. 
Lease incentives received are recognised in the income statement as an integral part of the total lease expense.
Finance lease payments
Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is 
allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Net financing costs
Net financing costs comprise interest payable, foreign exchange gains and losses and other finance charges.
Interest income and interest payable is recognised in profit or loss as it accrues, using the effective interest method. Dividend income 
is recognised in the income statement on the date the entity’s right to receive payments is established.
Taxation
Tax on the profit or loss for the period comprises current and deferred tax. Tax is recognised in the income statement except to the extent that 
it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted or substantively enacted at the balance 
sheet date, and any adjustment to tax payable in respect of previous periods.
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and 
the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of goodwill; the initial 
recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination; and differences relating 
to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided 
is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively 
enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset 
can be utilised. 
Segment reporting
A segment is a distinguishable component of the Group that is engaged either in providing related products or services (business segment), 
or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and returns 
that are different from those of other segments.  The consolidated Group operates in one reportable business segment being that of recruitment 
services (primary segment) and one reportable geographic segment being the UK (secondary segment). As a result no additional segment 
information is required to be provided.  The sale of the Solutions business and the closure of the executive search business do not meet the 
criteria for discontinued operations under IFRS 5 ‘Non‑current Assets Held for Sale and Discontinued Operations’ and hence have not been 
disclosed separately. 28 Kellan Group plc Annual report and accounts 2007
Notes to the financial statements continued
(forming part of the financial statements)
1 Accounting policies continued
Adopted IFRS not yet applied 
The following Adopted IFRS were available for early application but have not been applied by the Group in these financial statements. 
Their adoption is not expected to have a material affect on the financial statements unless otherwise indicated:
I IFRS 7 ‘Financial instruments: Disclosure’ applicable for years commencing on or after 1 January 2007.
The application of IFRS 7 in the period ended 31 December 2007 would not have affected the balance sheets or income statement but 
would have resulted in significant changes to disclosures provided in respect of financial instruments. The Group plans to adopt it in 2008.
I IFRS 8 ‘Operating Segments’ applicable for accounting periods beginning on or after 1 January 2009.
This standard sets out requirements for the disclosure of information about and entity’s operating segments and also about the entity’s 
products and services, the geographical areas in which it operates, and its major customers. It replaces IAS 14, Segmental Reporting. The Group 
expects to apply this standard in the accounting period beginning on 1 January 2009. As this is a disclosure standard it will not have any impact 
on the results or net assets of the Group.
I IFRIC 11, IFRS 2 ‘Group and Treasury Share Transactions’ applicable for accounting periods beginning on or after 1 March 2007.
IFRIC 11 requires share‑based payment transactions in which an entity receives services as consideration for its own equity instruments to 
be accounted for as equity‑settled. This applies regardless of whether the entity chooses or is required to buy those equity instruments from 
another party to satisfy its obligations to its employees under the share‑based payment arrangement. It also applies regardless of whether: 
(a) the employee’s rights to the entity’s equity instruments were granted by the entity itself or by its shareholder(s); or (b) the share‑based 
payment arrangement was settled by the entity itself or by its shareholder(s). The Group is currently assessing the impact of IFRIC 11 
on the accounts.
I  Revised IFRS 3 ‘Business Combinations’ and complementary amendments to IAS 27 ‘consolidated and separate financial statements’ both 
applicable for accounting periods beginning on or after 1 July 2009.
This revised standard and amendments to is still to be endorsed by the EU. The revised IFRS 3 and amendments to IAS 27 arise from a joint 
project with the Financial Accounting Standards Board (FASB), the US standards setter, and result in IFRS being largely converged with the 
related, recently issued US requirements. There are certain very significant changes to the requirement of IFRS, and options available, if accounting 
for business combinations. The Group is currently assessing the impact of revised IFRS 3 and amendments to IAS 27 on the accounts. 
Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that 
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ 
from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period 
in which the estimates are revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have 
the most significant effect on the amounts recognised in the financial statements is included below:
(a) Impairment of goodwill
The Group is required to test, on an annual basis, whether goodwill has suffered any impairment. The recoverable amount is determined based 
on value in use calculations. The use of this method requires the estimation of future cash flows and the choice of a discount rate in order to 
calculate the present value of the cash flows. Actual outcomes may vary. More information including carrying values is included in note 10.
(b) Useful lives of intangible assets and property, plant and equipment
Intangible assets and property, plant and equipment are amortised or depreciated over their useful lives. Useful lives are based on the 
management’s estimates of the period that the assets will generate revenue, which are periodically reviewed for continued appropriateness. 
Changes to estimates can result in significant variations in the carrying value and amounts charged to the consolidated income statement 
in specific periods. More details including carrying values are included in note 9 and 10.
(c) Fair value of financial instruments
The Group determines the fair value of financial instruments that are not quoted, using valuation techniques. Those techniques are significantly 
affected by the assumptions used, including discount rates and estimates of future cash flows. In that regard, the derived fair value estimates 
cannot always be substantiated by comparison with independent markets and, in many cases, may not be capable of being realised immediately. 
The methods and assumptions applied, and the valuation techniques used, are disclosed in note 20.
(d) Share based payments
Employee services received, and the corresponding increase in equity, are measured by reference to the fair value of the equity instruments 
at the date of grant, excluding the impact of any non‑market vesting conditions. The fair value of share options is estimated by using the 
Black Scholes valuation model on the date of grant based on certain assumptions. Those assumptions are described in note 16 and include, 
among others, the dividend growth rate, expected volatility, expected life of the options and number of options expected to vest. More details 
including carrying values are disclosed in note 16.
(e) Determination of fair values of intangible assets acquired in business combinations
The fair value of brand names is based on the discounted estimated royalty payments that would have been avoided as a result of the brand 
name being used. The fair value of customer relations is based on the discounted mean extended excess future cash flows from existing 
customers. These methods require the estimation of future cash flows, the choice of a suitable royalty and discount rates in order to calculate 
the fair values. 29 Kellan Group plc Annual report and accounts 2007
1 Accounting policies continued
Use of estimates and judgements continued
(f)  Income taxes
The Group is subject to income tax and significant judgement is required in determining the provision for income taxes. During the ordinary 
course of business, there are transactions and calculations for which the ultimate tax determination is uncertain. As a result, the Company 
recognizes tax liabilities based on estimates of whether additional taxes and interest will be due. This assessment relies on estimates and 
assumptions and may involve a series of complex judgments about future events. To the extent that the final tax outcome of these matters 
is different than the amounts recorded, such differences will impact income tax expense in the period in which such determination is made. 
2 Reconciliation of Operating (Loss)/Profit to Adjusted EBITDA
         15 month 12 month  
        period ended period ended  
        31 Dec 2007 30 Sep 2006 
        £000 £000
Operating (Loss)/profit as per accounts        (1,312) 106
Add back
Depreciation of assets         409 294
Amortisation of intangible assets        113 —
Share based payments charge        301 —
Non‑recurring costs (i)        891 73
Adjusted EBITDA (ii)        402 473
(i)   Non‑recurring items of £891,000 consist of costs of £245,000 incurred in respect of onerous leases and £646,000 incurred in respect 
of the restructuring of the Group. The prior period non‑recurring costs of £73,000 related to restructuring and redundancies.
(ii)  In calculating its Adjusted EBITDA the Group adds back share based payments charges and non‑recurring costs. 
3 Acquisition of subsidiaries
On 25 September 2007, the Group acquired all of the ordinary shares in Quantica plc for cash of £12,651,000 and the issue of 39,221,572 
ordinary shares. The Company provides permanent and contract recruitment services, focusing on niche professional markets within the UK 
recruitment staff sector. In the three months to 31 December 2007 the subsidiary contributed profit before tax of £289,000 to the consolidated 
loss before tax for the period. Due to the extended accounting period of the Group, it is not practicable to disclose the revenue and profit 
or loss for the period as though the acquisition date of the business combination had been at the beginning of the period.
Effect of acquisitions
The acquisitions had the following effect on the Group’s assets and liabilities.
      Acquiree’s Accounting Fair value Acquisition  
      book values policy adjustments amounts 
      £000 £000 £000 £000
Property, plant and equipment      240 — — 240
Intangible assets (note 1)      — — 4,531 4,531
Financial assets      12,268 549 — 12,817
Liabilities      (8,407) (83) — (8,490)
Deferred tax on intangibles      — — (1,269) (1,269)
Net identifiable assets and liabilities      4,101 466 3,262 7,829
Cash paid         12,651
Issue of share capital         16,865
Cost of acquisition         784
Consideration paid         30,300
Goodwill         22,471
The accounting policy alignment was required to bring the subsidiaries’ revenue recognition policy in line with the Group. The fair value 
of the shares issued was determined by reference to their quoted market price of £0.43 at the date of acquisition. The fair values assigned 
to the identifiable assets and liabilities have been determined provisionally due to the timing of the acquisition.
Included in financial assets was cash of £5,843,000 resulting in a net cash outflow of £7,592,000 on acquisition.
Residual goodwill of £22,471,000 reflects the value attributable to the workforce acquired and a premium to reflect the future potential 
and unrecognised value existing in the subsidiaries at the time of acquisition.  30 Kellan Group plc Annual report and accounts 2007
Notes to the financial statements continued
(forming part of the financial statements)
4 Expenses and auditors’ remuneration
Included in loss/profit are the following:
          15 month 12 month 
        period ended period ended  
        31 Dec 2007 30 Sep 2006 
        £000 £000
Pension contributions        134 91
Depreciation of owned property, plant and equipment       407 244
Depreciation of assets held under finance leases       2 50
Amortisation of intangible assets        113 —
Operating leases rentals – hire of plant & machinery       97 66
Operating leases rentals – hire of other assets        762 471
Loss on sale of property plant and equipment        63 3
Auditors’ remuneration:
Amounts payable to BDO Stoy Hayward LLP in respect of both audit and non audit services are set out below:
         15 month 12 month  
        period ended period ended  
        31 Dec 2007 30 Sep 2006 
        £000 £000
Fees payable to the auditors for the audit of the Company’s annual accounts     18 10
Fees payable to the auditors for other services:
 The audit of the Company’s subsidiaries        57 25
 Other services relating to taxation        41 6
 Services relating to corporate finance transactions        273 —
 Other non‑audit services        27 10
        398 41
5 Staff numbers and costs
The weighted average number of persons employed by the Group (including directors) during the period, analysed by category, was as follows:
 Number of employees
        2007 2006
Recruitment        202 146
Advertising        — 3
Administrative staff        50 34
Temporary workers (whose costs are included in cost of sales and services charged within revenue)   1,115 1,014
        1,367 1,197
The aggregate payroll costs of these persons were as follows:
         15 month 12 month  
        period ended period ended  
        31 Dec 2007 30 Sep 2006 
        £000 £000
Wages and salaries        18,583 13,116
Social security costs        1,593 1,080
Other pension costs        134 91
Share based payments (see note 16)        301 —
        20,611 14,287 31 Kellan Group plc Annual report and accounts 2007
5 Staff numbers and costs continued
Directors’ and key management personnel remuneration:
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities 
of the Group. During the period these were considered to be the directors of the Company.
         15 month 12 month  
        period ended period ended  
        31 Dec 2007 30 Sep 2006 
        £000 £000
Emoluments        385 290
Compensation for loss of office        175 25
Company contributions to money purchase pension schemes      29 23
Fees paid to non‑executive directors        14 9
Share based payments (see note 16)        296 —
        899 347
There were 3 directors in defined contribution pension schemes during the period (2006: 2).
The total amount payable to the highest paid director in respect of emoluments was £220,713 (2006: £129,074). Company pension 
contributions of £4,248 (2006: £12,744) were made to a money purchase scheme on his behalf.
During the period, the directors exercised warrants to subscribe for 1,140,216 ordinary shares at 17.5p per share.
6 Finance income and expense
         15 month 12 month  
        period ended period ended  
        31 Dec 2007 30 Sep 2006 
        £000 £000
Interest income on financial assets         56 3
Financial income        56 3
Interest expense on financial liabilities         359 304
Amortisation of loan costs        140 —
Finance leases and hire purchase contracts        1 5
Net foreign exchange loss        1 2
Net loss on measurement of interest rate swap to fair value      37 —
Financial expenses        538 311
7 Taxation
Recognised in the income statement
        15 month 12 month  
        period ended period ended  
        31 Dec 2007 30 Sep 2006 
        £000 £000
Current tax expense
Current period        — —
Adjustments for prior periods        — (1)
        — (1)
Deferred tax expense
Origination and reversal of temporary differences       (32) —
        (32) —
Total tax in income statement        (32) (1)
Reconciliation of effective tax rate
         15 month 12 month  
        period ended period ended  
        31 Dec 2007 30 Sep 2006 
        £000 £000
Loss before tax for the period        (1,794) (202)
Total tax credit         32 1
Loss after tax        (1,762) (201)
Tax using the UK corporation tax rate of 30 % (2006: 30 %)      (538) (61)
Non‑deductible expenses        149 40
Depreciation in excess of capital allowances        39 56
Other short term timing differences        (131) 4
Losses carried forward        481 (39)
Under/(over) provided in prior periods        — (1)
Origination and reversal of temporary deferred tax difference      (32) —
Total tax credit        (32) (1) 32 Kellan Group plc Annual report and accounts 2007
Notes to the financial statements continued
(forming part of the financial statements)
8 Earnings per share
Basic earnings per share
The calculation of basic earnings per share at 31 December 2007 was based on the loss attributable to ordinary shareholders of £1,762,000 
(2006: loss of £201,000) and a weighted average number of ordinary shares outstanding of 32,612,008 (2006: 8,518,615), calculated as follows:
Weighted average number of shares        2007 2006
Issued ordinary shares at 1 October        8,518,615 8,518,615
Effect of share options exercised        5 —
Effect of warrants exercised        124,750 —
Effect of shares issued         23,968,638 —
Weighted average number of shares at end of period       32,612,008 8,518,615
Loss per share in pence        (5.4) (2.4)
Diluted earnings per share
Options held in respect of the ordinary shares of the Company do not have a dilutive effect on the loss per share calculation 
in any of the periods covered by these accounts.
9 Property, plant and equipment 
       Short leasehold Computer   
       premises and and office   
       improvements equipment Total 
       £000 £000 £000
Cost
Balance at 1 October 2005        523 1,966 2,489
Additions       111 245 356
Disposals       (4) (1) (5)
Balance at 30 September 2006       630 2,210 2,840
Balance at 1 October 2006       630 2,210 2,840
Acquisitions through business combinations       172 1,684 1,856
Additions       30 231 261
Disposals       (315) (1,395) (1,710)
Balance at 31 December 2007       517 2,730 3,247
Depreciation and impairment
Balance at 1 October 2005       311 1,428 1,739
Depreciation charge for the period       54 240 294
Disposals       — (1) (1)
Balance at 30 September 2006       365 1,667 2,032
Balance at 1 October 2006       365 1,667 2,032
Acquisitions through business combinations       99 1,516 1,615
Depreciation charge for the period       108 301 409
Disposals       (297) (1,345) (1,642)
Balance at 31 December 2007       275 2,139 2,414
Net book value
At 1 October 2005       212 538 750
At 30 September 2006 and 1 October 2006       265 543 808
At 31 December 2007       242 591 833
Leased plant and machinery
At 31 December 2007 the net carrying amount of leased plant and machinery was £12,030 (2006: £49,406).  33 Kellan Group plc Annual report and accounts 2007
10 Intangible assets
        Customer  
      Goodwill Brand name relations Total 
      £000 £000 £000 £000
Cost
Balance at 1 October 2005      2,518 — — 2,518
Balance at 30 September 2006      2,518 — — 2,518
Balance at 1 October 2006      2,518 — — 2,518
Acquisitions through business combinations      22,471 922 3,609 27,002
Balance at 31 December 2007      24,989 922 3,609 29,520
Amortisation and impairment
Balance at 1 October 2005      — — — —
Balance at 30 September 2006      — — — —
Balance at 1 October 2006      — — — —
Amortisation      — 23 90 113
Balance at 31 December 2007      — 23 90 113
Net book value
At 1 October 2005      2,518 — — 2,518
At 30 September 2006 and 1 October 2006      2,518 — — 2,518
At 31 December 2007      24,989 899 3,519 29,407
Amortisation and impairment charge
The amortisation and impairment charge is recognised in the following line items in the income statement:
        31 Dec 2007 30 Sep 2006 
        £000 £000
Administrative expenses        113 —
        113 —
Impairment testing of goodwill
Goodwill acquired through business combinations has been allocated for impairment testing purposes to the Groups of cash generating units (CGUs) 
listed below. These represent the lowest level within the Group at which goodwill is monitored by management for internal reporting purposes:
Goodwill
        31 Dec 2007 30 Sep 2006 
        £000 £000
Regional (Former Gold Helm Roche) branch network       1,920 1,920
London (Former Sherwoods) branch network         569 569
RK Group        10,582 —
Quantica Technology        6,129 —
Quantica Search and Selection        5,760 —
Other        29 29
        24,989 2,518
The recoverable amount of all the CGUs is based on a value in use calculation using cash flow projections based on the latest one year budget 
forecast. An appropriate terminal value based on a perpetuity calculation is then generated. The key assumptions used in the impairment testing 
were contribution, rates of growth and discount rates. 
Contribution 
Contribution is based on the margins achieved remaining at the levels currently being achieved and after allocating shared overheads 
that entered the Group’s cost base as part of the same acquisition.
Discount rate
A discount rate of 12% reflects management’s estimate of the pre‑tax cost of capital of the Group and is applied to each of the CGUs listed above. 
Rates of growth 
For the purposes of impairment testing only, growth rate assumptions are set at nil, which are less than published industry estimates. 
Goodwill impairment
Management believes that no reasonably possible change in the key assumptions above would cause any of the identified CGUs to become impaired. 34 Kellan Group plc Annual report and accounts 2007
Notes to the financial statements continued
(forming part of the financial statements)
11 Deferred tax assets and liabilities 
Recognised deferred tax liabilities 
Deferred tax liabilities are attributable to the following:
        31 Dec 2007 30 Sep 2006 
        £000 £000
Balance at 1 October 2006        — —
Business combinations        1,269 —
Credited to the income statement        (32) —
Balance at 31 December 2007        1,237 —
At 31 December 2007 there was an unprovided deferred tax asset as set out below. This asset has not been included in the balance sheet 
as its recoverability is uncertain.
        31 Dec 2007 30 Sep 2006 
        £000 £000
Losses carried forward         600 42
Decelerated capital allowances        123 71
Other temporary and deductible differences        304 13
        1,027 126
12 Trade and other receivables
        31 Dec 2007 30 Sep 2006 
        £000 £000
Trade receivables         8,187 2,489
Other receivables         267 98
Prepayments and accrued income        2,118 756
        10,572 3,343
13 Cash and cash equivalents/ bank overdrafts
        31 Dec 2007 30 Sep 2006 
        £000 £000
Cash and cash equivalents per balance sheet        692 3
Bank overdrafts        (73) (592)
Cash and cash equivalents per cash flow statement       619 (589)
14 Other interest‑bearing loans and borrowings
The book value and fair value of loans and borrowings are as follows:
        31 Dec 2007 30 Sep 2006 
        £000 £000
Non‑current liabilities
Secured bank loans        3,141 216
Finance lease liabilities        — 1
        3,141 217
Current liabilities
Current portion of secured bank loans        712 100
Current portion of finance lease liabilities        1 26
Invoice discounting facility        979 1,838
        1,692 1,964
Terms and debt repayment schedule 
       Carrying  Carrying 
      Face value amount Face value  amount 
    Nominal Year of 31 Dec 2007 31 Dec 2007 30 Sep 2006 30 Sep 2006 
   Currency interest rate maturity £000 £000 £000 £000
Bank loan (Barclays)
   Sterling 1.5% 2012 4,200 3,853 — — 
    above      
    LIBOR     
Bank loan (RBS)
   Sterling 2.25% Repaid — — 316 316 
    above      
    RBS base     
      4,200 3,853 316 316
The 5 year term loan of £4,200,000 and invoice discounting facility balances of £979,000 are secured through deeds of composite guarantees 
and mortgage debentures on Group companies.  35 Kellan Group plc Annual report and accounts 2007
14 Other interest‑bearing loans and borrowings continued
Finance lease liabilities
Finance lease liabilities are payable as follows:
    Minimum   Minimum   
    lease   lease   
    payments Interest Principal payments Interest Principal 
    31 Dec 2007 31 Dec 2007 31 Dec 2007 30 Sep 2006 30 Sep 2006 30 Sep 2006 
    £000 £000 £000 £000 £000 £000
Less than one year    1 — 1 27 1 26
Between one and five years    — — — 1 — 1
More than five years    — — — — — —
    1 — 1 28 1 27
Obligations under finance leases and hire purchase contracts are secured on the assets concerned.
15 Trade and other payables
        31 Dec 2007 30 Sep 2006 
        £000 £000
Trade payables         777 298
Social security and other taxes        1,715 658
Other creditors        1,261 162
Accruals and deferred income        2,433 626
        6,186 1,744
16 Employee benefits
Defined contribution plans 
The Group operates a number of defined contribution pension plans. The total expense relating to these plans in the current 
period was £134,286 (2006: £91,236). Pension contributions totalling £15,843 (2006: £16,002) were outstanding at the period end.
Share‑based payments
Approved and unapproved share schemes 
The Company operate an EMI approved share option scheme and an unapproved share option scheme for employees of the Group. Approved 
options granted with performance conditions vest on the option holder being notified that the performance target has been met. In the case 
of an option which does not have a performance condition the individual must remain as an employee of the Group for more than three years 
in order for the options to vest. Unapproved options granted vest on the individual remaining an employee of the Group for the period specified 
in the option agreement and this can vary from one to five years. All options granted have a contract life of 10 years.
Warrants
On 30 January 2007, 14,285,714 ordinary shares of 2p each were issued by the Company at a premium of 15.5p per share. Under the terms 
of the subscription agreement the shareholders were granted warrants to subscribe for a further 1,140,216 ordinary shares at an exercise price 
of 17.5p per share. The warrants vested on 31 July 2007 and were exercised on 12 November 2007. There are no outstanding warrants 
at 31 December 2007.
The number and weighted average exercise prices of share options and warrants are as follows:
      Weighted  Weighted  
      average Number average Number 
      exercise price of options exercise price of options 
      £ and warrants £  
      31 Dec 2007 31 Dec 2007 30 Sep 2006 30 Sep 2006
Outstanding at the beginning of the period      0.54 411,411 0.60 519,662
Options granted during the period      0.56 1,140,216 0.26 260,832
Warrants granted during the period      0.18 1,140,216 — —
Options exercised during the period      0.20 (219) — —
Warrants exercised during the period      0.18 (1,140,216) — —
Options lapsed during the period      0.76 (105,826) 0.43 (369,083)
Outstanding at the end of the period      0.54 1,445,582 0.54 411,411
Exercisable at the end of the period      0.83 105,784 0.83 211,804
The exercise price of options and warrants outstanding at the end of the period ranged between £0.20 and £0.99 (2006: £0.20 and £0.99) 
and their weighted residual contractual life was 8 years (2006: 5 years).
The weighted average share price (at the date of exercise) of warrants and options exercised during the period was 31.5p (2006: none exercised).
The weighted average fair value of each option granted during the period was £0.19 (2006: none granted). 36 Kellan Group plc Annual report and accounts 2007
Notes to the financial statements continued
(forming part of the financial statements)
16 Employee benefits continued
Share‑based payments continued
The fair value of employee share options is measured using the Black Scholes model. Measurement inputs and assumptions on options 
granted during the period are as follows:
        31 Dec 2007 30 Sep 2006
Fair value at measurement date        £444,418 N/a
Weighted average share price        £0.47 N/a
Weighted average exercise price        £0.37 N/a
Expected volatility         40% N/a
Expected option life         2 N/a
Expected dividends         0% N/a
Risk‑free interest rate (based on national government bonds)      5% N/a
The expected volatility is based on the historic volatility (calculated based on the weighted average remaining life of the share options). 
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. No share based payments charge was recognised in the period ended 30 September 2006 
on the basis of materiality and hence the assumptions for that period have not been stated.
The total expenses recognised for the period arising from share based payments was £301,000 (2006: £nil).
17 Provisions
         Onerous  
         contracts 
         £000
Balance at 1 October 2006         —
Provisions made during the period         245
Provisions used during the period         —
Balance at 31 December 2007         245
Non‑current         200
Current         45
         245
Onerous contracts predominantly relate to the remaining rents and dilapidations payable on properties which have been vacated and incremental 
costs that will be incurred on vacating existing properties where a commitment to do so exists at the balance sheet date. Inherent uncertainties 
in measuring the provision are the estimated cost of returning the properties to their original state at the end of the lease and estimates of rents 
that will be received in the future on vacant property. 
18 Capital 
Share capital
 Ordinary shares
In thousands of shares        31 Dec 2007 30 Sep 2006
On issue at 1 October         8,519 8,519
Issued on acquisition         39,222 —
Exercise of warrants         1,140 —
Other issues for cash during the period        38,205 —
On issue at 31 December – fully paid        87,086 8,519
        31 Dec 2007 30 Sep 2006 
        £000 £000
Authorised
Ordinary shares of £0.02 each        2,895 1,000
Allotted, called up and fully paid
Ordinary shares of £0.02 each        1,742 170
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings 
of the Company.  37 Kellan Group plc Annual report and accounts 2007
19 Reserves
Share premium
The share premium account represents the excess of the proceeds from the issue of shares over the nominal value of shares issued less 
related issue costs.
Merger reserve
The merger reserve represents the excess of the fair value of shares issued on acquisition over the nominal value of shares issued where 
merger relief for the purposes of s131 of the Companies Act applies.
Capital redemption reserve
The capital redemption reserve relates to the cancellation of the Company’s own shares.
20 Financial instruments
Credit risk
The Company’s policies in respect of credit risk require appropriate credit checks on potential customers before sales are made, the appropriate 
limiting of credit to each customer and the close monitoring of KPI trending such as Days Sales Outstanding and debtor ageing.
Liquidity and cash flow interest rate risk
The Company’s policy in respect of liquidity risk is to maintain a mixture of long term and short term debt finance, including an invoice discounting 
facility, to ensure the Company has sufficient funds for operations. Debt is maintained at bank variable rates which inherently bring interest rate 
risk and the Group makes use of interest rate collar swaps to achieve the desired interest rate profile. The Company maintains detailed cash 
flow forecasts enabling it to factor incremental changes in interest rates into its risk profile and liquidity and react accordingly .
Treasury management
The treasury function is not a profit centre and all activities are undertaken primarily to support the underlying exposures faced by the operating 
companies. The Group does not enter into speculative treasury arrangements and there are no significant balances or exposures denominated 
in foreign currencies.
Effective interest rates and repricing analysis – Group
In respect of income‑earning financial assets and interest‑bearing financial liabilities, the following table indicates their effective interest rates 
at the balance sheet date and the periods in which they mature or, if earlier, are repriced. 
 2007  2006
 Effective  0 to 1 to 2 to Effective  0 to 1 to 2 to 5 years 
 interest Total <1 years <2 years <5 years interest Total <1 years <2 years <5 years and over 
 rate £000 £000 £000 £000 Rate £000 £000 £000 £000 £000
Cash and  
cash equivalents 4.0% 619 619 — — 7.0% (589) (589) — — —
Secured sterling  
bank loans 6.2% (3,853) (717) (744) (2,392) 7.3% (316) (100) (100) (116) —
Finance lease liabilities* 5.6% (1) (1) — — 5.6% (27) (26) (1) — —
Invoice discounting 7.0% (979) (979) — — 7.0%  (1,838) (1,838) — — —
  (4,214) (1,078) (744) (2,392)  (2,770) (2,553) (101) (116) —
* These liabilities bear interest at a fixed rate.
21 Operating leases
Non‑cancellable operating lease rentals are payable as follows:
        31 Dec 2007 30 Sep 2006 
        £000 £000
Less than one year        476 553
Between one and five years        909 1,139
More than five years        214 67
        1,599 1,759
During the period £859,000 was recognised as an expense in the income statement in respect of operating leases (2006: £537,000).
22 Contingencies
Bank loans and invoicing discounting balances amounting to £5,179,000 (2006: £2,316,000 including overdrafts) are secured by cross 
guarantees and mortgage debentures on certain Group companies.
23 Ultimate controlling party
Directors of the Company and their immediate relatives control 23 per cent of the voting shares of the Company. 
In the opinion of the directors there is no one individual or entity that ultimately controls the Group.
24 Post balance sheet events
Following an Extraordinary General Meeting on 18 February 2008, the Company changed its name from Berkeley Scott Group plc 
to Kellan Group plc.
On 28 January 2008, 4,754,319 share options were granted to directors of the Company. 38 Kellan Group plc Annual report and accounts 2007
Notes to the financial statements continued
(forming part of the financial statements)
25 Explanation of transition to Adopted IFRS 
As stated in note 1, these are the Group’s first consolidated financial statements prepared in accordance with Adopted IFRS.
The accounting policies set out in note 1 have been applied in preparing the financial statements for the period ended 31 December 2007, 
the comparative information presented in these financial statements for the period ended 30 September 2006 and in the preparation 
of an opening IFRS balance sheet at 1 October 2005 (the Group’s date of transition).
In preparing its opening IFRS balance sheet, the Group has adjusted amounts reported previously in financial statements prepared in accordance 
with its old basis of accounting (UK GAAP). An explanation of how the transition from UK GAAP to Adopted IFRS has affected the Group’s 
financial position, financial performance and cash flows is set out in the following tables and the notes that accompany the tables.
Reconciliation of equity
 1 October 2005  30 September 2006
     Effect of   Effect of  
     transition   transition  
      to adopted Adopted  to adopted Adopted  
    UK GAAP IFRS IFRS UK GAAP IFRS IFRS 
   Note £000 £000 £000 £000 £000 £000
Non‑current assets
 Property, plant and equipment    750 — 750 808 — 808
 Intangible assets   b 2,518 — 2,518 2,332 186 2,518
    3,268 — 3,268 3,140 186 3,326
Current assets
 Trade and other receivables    3,624 — 3,624 3,343 — 3,343
 Cash and cash equivalents    3 — 3 3 — 3
 Assets classified as held for sale    — — — — — —
    3,627 — 3,627 3,346 — 3,346
Total assets    6,895 — 6,895 6,486 186 6,672
Current liabilities
 Bank overdraft    111 — 111 592 — 592
 Other interest‑bearing loans and borrowings   2,219 — 2,219 1,964 — 1,964
 Trade and other payables    1,859 — 1,859 1,728 — 1,728
 Employee benefits    6 — 6 16 — 16
 Liabilities classified as held for sale    — — — — — —
    4,195 — 4,195 4,300 — 4,300
Non‑current liabilities
 Other interest‑bearing loans and borrowings   344 — 344 217 — 217
Total liabilities    4,539 — 4,539 4,517 — 4,517
Net assets    2,356 — 2,356 1,969 186 2,155
Equity attributable to equity holders of the parent
 Share capital    170 — 170 170 — 170
 Share premium    3,572 — 3,572 3,572 — 3,572
 Reserves    2 — 2 2 — 2
 Retained earnings    (1,388) — (1,388) (1,775) 186 (1,589)
Total equity     2,356 — 2,356 1,969 186 2,155 39 Kellan Group plc Annual report and accounts 2007
25 Explanation of transition to Adopted IFRS continued
Reconciliation of the loss for the 12 months ended 30 September 2006 
        Effect of 
        transition to  
        Adopted Adopted 
       UK GAAP IFRS IFRS 
      Note £000 £000 £000
Revenue       17,977 — 17,977
Cost of sales       (8,390) — (8,390)
Gross profit       9,587 — 9,587
Administrative expenses      b (9,667) 186 (9,481)
Operating (loss)/profit        (80) 186 106
Financial income       3 — 3
Financial expenses       (311) — (311)
Loss before tax       (388) 186 (202)
Taxation       1 — 1
Loss for the period       (387) 186 (201)
Attributable to:
Equity holders of the parent       (387) 186 (201)
Loss for the period       (387) 186 (201)
Notes to the reconciliation of equity and loss for the period
a)  Presentation of financial statements – The formats of the income statement, balance sheet and particularly the cash flow statement 
are different under IFRS as compared to those used for UK GAAP .
b)  Goodwill – Goodwill is not amortised under IFRS. Instead goodwill is subject to annual impairment testing, which indicated that no provision 
for impairment was required.
Explanation of material adjustments to the cash flow statement for the period ended 30 September 2006
There are no material differences between the cash flow statement presented under Adopted IFRS and the cash flow statement presented 
under UK GAAP . 40 Kellan Group plc Annual report and accounts 2007
Company balance sheet
at 31 December 2007
 31 Dec 2007  30 Sep 2006
     Note £000 £000 £000 £000
Fixed assets
Intangible assets     28  672  739
Investments     29  32,162  2,203
       32,834  2,942
Current assets     
Debtors – due within one year     30 1,105  16 
Debtors – due after more that one year     30 4,019  1,099 
Cash at bank and in hand      54  — 
      5,178  1,115 
Creditors: amounts falling due within one year     31 (4,391)  (540) 
Net current assets       787  575
Total assets less current liabilities       33,621  3,517
Creditors: amounts falling due after more than one year     32  (3,141)  (216)
Net assets        30,480  3,301
Capital and reserves
Called up share capital     33  1,742  170
Share premium account     34  13,740  3,572
Merger reserve     34  16,081  —
Capital redemption reserve     34  2  2
Profit and loss account     34  (1,085)  (443)
Shareholders’ funds        30,480  3,301
These financial statements were approved by the Board of directors on 28 March 2008 and were signed on its behalf by:
John Rose Will Coker
Director Director 41 Kellan Group plc Annual report and accounts 2007
Notes to the financial statements continued
(forming part of the financial statements)
26 Accounting policies
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial 
statements, except as detailed below:
FRS 20 Share based payments – The Company has adopted FRS 20 and the accounting policies followed are in all material regards the same 
as the Group’s policy under IFRS 2. This policy is shown in the Group accounting policies on page 27.
Basis of preparation
The financial statements have been prepared in accordance with applicable accounting standards, and under the historical cost accounting rules.
Under section 230(4) of the Companies Act 1985 the Company is exempt from the requirement to present its own profit and loss account. 
The Group profit and loss account for the period includes a loss after tax and dividends of £943,000 (2006: £175,000) which is dealt with 
in the financial statements of the parent company.
As these financial statements are presented together with the consolidated financial statements, the Company has taken advantage 
of the exception in FRS 8 and has therefore not disclosed transactions or balances with entities which form part of the Group.
Goodwill 
Goodwill arising on an acquisition of a trade or a subsidiary undertaking is the difference between the fair value of the consideration paid 
and the fair value of the assets and liabilities acquired. It is capitalised and amortised through the profit and loss account over the directors’ 
estimate of its useful economic life of 20 years. Impairment tests on the carrying value of goodwill are undertaken:
– at the end of the first full financial year following acquisition; and 
– in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
Investments
Investments held as fixed assets are stated at cost less any provision for permanent diminution in value.
Foreign currency
Foreign currency transactions are translated into sterling at the rates ruling when they occurred. Foreign currency monetary assets and liabilities 
are translated at the rates ruling at the balance sheet dates. Any differences are taken to the profit and loss account.
Deferred taxation
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date except 
that the recognition of deferred tax assets is limited to the extent that the Company anticipates making sufficient taxable profits in the future 
to absorb the reversal of the underlying timing differences.
Deferred tax balances are not discounted.
Pension costs
The Group makes contributions to money purchase pension schemes of certain staff and directors. The assets of the schemes are held separately 
from those of the Group in independently administered funds. Contributions are charged to the profit and loss account in the period in which 
they are payable.
Finance costs
Finance costs associated with the issue of debt are carried forward and charged to profit over the term of the debt so that the amount charged 
is at a constant rate on the carrying amount.
Financial instruments
Financial instruments are measured initially and subsequently at cost. Financial liabilities and equity are classified according to the substance 
of the financial instruments’ contractual obligations rather than the financial instruments’ legal form. 
27 Staff numbers and costs
The only employees of the Company at the period end were 4 (2006: 2) directors and 3 (2006: £nil) Group employees. The aggregate payroll 
costs of these persons were as follows:
        15 months 12 months  
        ended ended  
        31 Dec 2007 30 Sep 2006 
        £000 £000
Wages and salaries        133 —
Social security costs        14 —
Other pension costs        8 —
Share based payments (See note 37)        301 —
        456 —
Details of directors’ emoluments, share option schemes and pension entitlements are given in the note 5. 42 Kellan Group plc Annual report and accounts 2007
Notes to the financial statements continued
(forming part of the financial statements)
28 Intangible fixed assets
         Purchased  
         goodwill 
         £000
Cost
At beginning of period         1,071
Additions         —
Disposals         —
At end of period         1,071
Amortisation
At beginning of period         332
Charged in period         67
Impairment losses         —
On disposals         —
At end of period         399
Net book value
At 31 December 2007         672
At 30 September 2006         739
29 Fixed asset investments
         Shares 
         in Group 
         undertakings 
         £000
Cost
At beginning of period         2,203
Additions         30,300
Disposals         (341)
Impairment losses         —
At end of period         32,162
Provisions
At beginning of period         —
Provided in period         —
Disposals         —
Impairment losses         —
At end of period         —
Net book value
At 31 December 2007         32,162
At 30 September 2006         2,203
The Company has the following investments in subsidiaries:
  
  
  
     
Country of  Class of
 Ownership
     Incorporation  shares held 2007 2006
Berkeley Scott Limited     England & Wales  Ordinary 100% 100%
Quantica Limited     England & Wales  Ordinary 100% —
Quantica Group Limited*     England & Wales  Ordinary 100% —
Quantica Holdings Limited*     England & Wales  Ordinary 100% —
Quantica Solutions Limited*     England & Wales  Ordinary 100% —
RK Group Limited*     England & Wales  Ordinary 100% —
* – indirectly held
The Company also owns 36 (2006: 9) non‑trading companies all of which are registered in England and Wales. As permitted by Section 231(5) 
of the Companies Act 1985 a list of these subsidiary companies has not been presented. A full list of companies will be included with the next 
annual return to the Registrar of Companies.  43 Kellan Group plc Annual report and accounts 2007
30 Debtors
        31 Dec 2007 30 Sep 2006 
        £000 £000
Amounts owed by Group undertakings        4,115 1,099
Prepayments and accrued income        1,009 16
        5,124 1,115
Included within amounts owed by Group undertakings is an amount of £4,019,000 (2006: £1,099,000) due after more than one year.
31 Creditors: amounts falling due within one year
        31 Dec 2007 30 Sep 2006 
        £000 £000
Bank loans and overdrafts        712 213
Trade Creditors        18 —
Other taxation and social security        16 —
Amounts owed to Group undertakings        3,478 297
Accruals and deferred income        167 30
        4,391 540
32 Creditors: amounts falling due after more than one year
        31 Dec 2007 30 Sep 2006 
        £000 £000
Bank loans        3,141 216
The maturity of bank loans and overdrafts is as follows:
        31 Dec 2007 30 Sep 2006 
        £000 £000
Within one year        712 213
In the second to fifth years        3,141 100
Over five years        — 117
        3,853 430
The 5 year term loan of £4,200,000 is secured through deeds of composite guarantees and mortgage debentures on Group companies. 
The loan attracts interest at 1.5% per annum above LIBOR. 
33 Called up share capital
        31 Dec 2007 30 Sep 2006 
        £000 £000
Authorised
Ordinary shares of £0.02 each        2,895 1,000
Allotted, called up and fully paid
Ordinary shares of £0.02 each        1,742 170
Details of shares issued in the period are included in note 18.
34 Share premium and reserves
      Share  Capital Profit 
      premium Merger redemption and loss 
      account reserve reserve account 
      £000 £000 £000 £000
At beginning of period      3,572 — 2 (443)
Profit for the period      — — — (943)
Issue of ordinary shares      11,302 16,081 — —
Exercise of warrants      178 — — —
Share issue costs      (1,312) — — —
Share based payments charge      — — — 301
At end of period      13,740 16,081 2 (1,085)
35 Contingent liabilities 
Invoicing discounting balances in the Company’s subsidiaries amounting to £979,000 (2006: £1,838,000) are secured by cross guarantees 
and mortgage debentures on the Company.
36 Pension scheme
Defined contribution pension scheme
The Company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable 
by the Company to the scheme and amounted to £ 8,375 (2006: £nil). There were no outstanding or prepaid contributions at either 
the beginning or end of the financial period.  44 Kellan Group plc Annual report and accounts 2007
Notes to the financial statements continued
(forming part of the financial statements)
37 Employee share schemes
Share‑based payments 
Approved and unapproved share schemes 
The Company operate an EMI approved share option scheme and an unapproved share option scheme for employees of the Group. Approved 
options granted with performance conditions vest on the option holder being notified that the performance target has been met. In the case 
of an option which does not have a performance condition the individual must remain as an employee of the Group for more than three years 
in order for the options to vest. Unapproved options granted vest on the individual remaining an employee of the Group for the period specified 
in the option agreement and this can vary from one to five years. All options granted have a contract life of 10 years.
Warrants
On 30 January 2007, 14,285,714 ordinary shares of 2p each were issued by the Company at a premium of 15.5p per share. Under the terms 
of the subscription agreement the shareholders were granted warrants to subscribe for a further 1,140,216 ordinary shares at an exercise price 
of 17.5p per share. The warrants vested on 31 July 2007 and were exercised on 12 November 2007. There are no outstanding warrants 
at 31 December 2007.
The number and weighted average exercise prices of share options and warrants are as follows:
      Weighted  Weighted  
      average Number of average  
      exercise price options and exercise price Number 
      £ warrants £ of options 
      31 Dec 2007 31 Dec 2007 30 Sep 2006 30 Sep 2006
Outstanding at the beginning of the period      0.54 411,411 0.60 519,662
Options granted during the period      0.56 1,140,216 0.26 260,832
Warrants granted during the period      0.18 1,140,216  
Options exercised during the period      0.20 (219) — —
Warrants exercised during the period      0.18 (1,140,216) — —
Options lapsed during the period      0.76 (105,826) 0.43 (369,083)
Outstanding at the end of the period      0.54 1,445,582 0.54 411,411
Exercisable at the end of the period      0.83 105,784 0.83 211,804
The exercise price of options and warrants outstanding at the end of the period ranged between £0.20 and £0.99 (2006: £0.20 and £0.99) 
and their weighted residual contractual life was 8 years (2006: 5 years).
The weighted average share price (at the date of exercise) of options exercised during the period was 31.5p (2006: none exercised).
The weighted average fair value of each option granted during the period was £0.19 (2006: none granted).
The fair value of employee share options is measured using the Black Scholes model. Measurement inputs and assumptions on options 
granted during the period are as follows:
        31 Dec 2007 30 Sep 2006
Fair value at measurement date        £444,418 N/a
Weighted average share price        £0.47 N/a
Weighted average exercise price        £0.37 N/a
Expected volatility         40% N/a
Expected option life         2 N/a
Expected dividends         0% N/a
Risk‑free interest rate (based on national government bonds)      5% N/a
The expected volatility is based on the historic volatility (calculated based on the weighted average remaining life of the share options). 
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. No share based payments charge was recognised in the period ended 30 September 2006 
on the basis of materiality and hence the assumptions for that period have not been stated.
The total expenses recognised for the period arising from share based payments was £301,000 (2006: £nil).
38 Post balance sheet events
Following an Extraordinary General Meeting on 18 February 2008, the Company changed its name from Berkeley Scott Group plc 
to Kellan Group plc.
On 28 January 2008, 4,754,319 share options were granted to directors of the Company.
39 Ultimate controlling party
Directors of the Company and their immediate relatives control 23 per cent of the voting shares of the Company. 
In the opinion of the directors there is no one individual or entity that ultimately controls the Company. 45 Kellan Group plc Annual report and accounts 2007
Notice of annual general meeting
(incorporated in England and Wales under the Companies Act 1985 with registration number 02228050)
Notice is hereby given that the Annual General Meeting of The Kellan Group plc will be held at Berkeley House, 11–13 Ockford Road, 
Godalming, Surrey GU7 1QU on Monday 19 May 2008 at 10.00am for the following purposes:
Ordinary Business
To consider and if thought fit, to pass the following resolutions which will be proposed as ordinary resolutions: 
1.  To receive and adopt the Company’s annual accounts for the year ended 31 December 2007 together with the last directors’ report 
and the auditors’ report on those accounts. 
2.  To re‑appoint BDO Stoy Hayward LLP as auditors of the Company to hold office from the conclusion of this meeting until the conclusion of the 
next general meeting of the Company at which audited accounts are laid, and to authorise the directors to determine their remuneration.
3.  In accordance with the provisions of Regulation 94 of the Company’s Articles of Association whereby each director appointed by the Board 
holds office until the next following Annual General Meeting when they shall retire from office and offer themselves for re‑election, to re‑appoint 
John Rose as a director of the Company.
Special Business
To consider and if thought fit, to pass the following resolution which will be proposed as an ordinary resolution: 
4.  THAT the directors be and they are generally and unconditionally authorised for the purposes of section 80 of the Companies Act 1985 
(the “Act”) to exercise all the powers of the Company to allot relevant securities (within the meaning of that section) up to an aggregate 
nominal amount of £580,575 (being one third of the nominal value of the issued share capital of the Company) provided that this authority 
is for a period expiring (unless previously renewed, varied or revoked by the Company in general meeting) at the conclusion of the next 
Annual General Meeting of the Company following the passing of this resolution or, if earlier, the date following 15 months after the date 
on which this resolution is passed (the “Period of Authority”) but the Company may before such expiry make an offer or agreement which 
would or might require relevant securities to be allotted after such expiry and the directors may allot relevant securities in pursuance of such 
offer or agreement notwithstanding that the authority conferred by this resolution has expired. This authority is in substitution for all 
subsisting authorities, to the extent unused.
To consider and, if thought fit, to pass the following resolution which will be proposed as a special resolution: 
5.   THAT subject to the passing of the previous resolution and in substitution for and to the exclusion of any existing authority, the directors 
be and they are empowered pursuant to Section 95 of the Act to allot equity securities (as defined in Section 94(2) of the Act) for cash as 
if Section 89(1) of the Act did not apply to any such allotment, such power to expire at the expiry of the Period of Authority (save that during 
the Period of Authority the Company may make an offer or agreement which would or might require equity securities to be allotted after such 
expiry and the directors may allot equity securities in pursuance of such offer or agreement as if the authority conferred had not expired) 
provided that such power is limited to:
 (a)  the allotment of equity securities (as defined in Section 94(2) of the Act) for cash where such securities have been offered (whether 
by way of rights issue, open offer or otherwise) to the holders of equity securities and other persons entitled to participate therein in 
proportion (as nearly as may be) to their holdings of equity securities (or, as appropriate, the number of such securities which such other 
persons are for those purposes deemed to hold) subject only to such exclusions or other arrangements as the directors may deem 
necessary or expedient to deal with fractional entitlements or legal or practical problems under the law or the requirements of any 
recognised body of, or stock exchange in, any territory; and
 (b)  the allotment (otherwise than pursuant to the powers referred to in sub‑paragraph (a) above) of equity securities up to an aggregate 
nominal amount of £261,259.
By order of the Board
IMCO Secretary Limited
Company Secretary
17 April 2008
Registered office: 
11–13 Ockford Road
Godalming
Surrey GU7 1QU  46 Kellan Group plc Annual report and accounts 2007
Notice of annual general meeting continued
(incorporated in England and Wales under the Companies Act 1985 with registration number 02228050)
NOTES: 
1.  All members who hold ordinary shares are entitled to attend and vote at the Annual General Meeting. A member entitled to attend and vote 
at the meeting may appoint one or more proxies to attend and, on a poll, to vote instead of him. A proxy need not be a member of the Company. 
2.  Completion and return of a form of proxy will not preclude shareholders from attending and voting in person at the meeting or adjournment 
of the meeting. 
3.  To be effective, the instrument appointing a proxy and any authority under which it is executed (or a copy of such authority notarially certified 
or certified in some other way approved by the Board) must be deposited with the Company’s registrar, Capita Registrars, The Registry, 
34 Beckenham Road, Beckenham, Kent, BR3 4TU, not less than 48 hours before the time for holding the meeting or, in the event 
of an adjournment, not less than 48 hours before the time of the adjournment. A form of proxy is enclosed with this notice. 
4.  The register of interests of the directors and their families in the share capital of the Company and copies of contracts of service of directors 
with the Company or with any of its subsidiary undertakings will be available for inspection at the registered office of the Company during 
normal business hours (Saturdays and public holidays excepted) from the date of this notice until the conclusion of the AGM. 
5.  If you have sold or otherwise transferred all of your holding of ordinary shares, you should immediately forward this document, together 
with the accompanying Form of Proxy, as soon as possible, to the purchaser or transferee or to the stockbroker, bank or other agent through 
whom the sale or transfer was effected for onwards transmission to the purchaser or transferee. If you have sold or transferred only part 
of your holding of ordinary shares you should retain these documents.
6.  The distribution of this document in certain jurisdictions may be restricted by law. No action has been taken by the Company that would 
permit possession or distribution of this document in any jurisdiction in which action for that purpose is required, other than in the 
United Kingdom. Persons into whose possession this document comes should inform themselves about and observe any such restrictions. 
Any failure to comply with such restrictions may constitute a violation of the securities laws of any such jurisdiction. This document does 
not constitute an offer to the public to sell or issue or the solicitation of an offer from the public to buy or subscribe for ordinary shares 
in any jurisdiction.
7.  In accordance with Regulation 41 of the Uncertificated Securities Regulations 2001, only those shareholders entered in the register of members 
of the Company as at 6.00pm on Saturday 17 May 2008 or, in the event that the meeting is adjourned, in the register of members at 6.00pm 
on the second day prior to the day of any adjourned meeting, shall be entitled to attend or vote at the meeting in respect of the number of 
shares registered in their name at that time. Changes to entries in the register of members after 6.00pm on Saturday 17 May 2008 or, in the 
event that the meeting is adjourned, in the register of members after 6.00pm on the second day prior to the day of the adjourned meeting, 
shall be disregarded in determining the rights of any person to attend or vote at the meeting. 
8.  CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so for the 
meeting and any adjournment(s) thereof by using the procedures described in the CREST Manual. CREST personal members or other 
CREST sponsored members who have appointed a voting service provider(s) should refer to their CREST sponsor or voting service 
provider(s), who will be able to take the appropriate action on their behalf. 
  In order for a proxy appointment or instruction made by means of CREST to be valid, the appropriate CREST message (a “CREST Proxy 
Instruction”) must be properly authenticated in accordance with Euroclear UK and Ireland’s specifications and must contain the information 
required for such instructions, as described in the CREST Manual. The message must be transmitted so as to be received by the Company’s 
agent, Capita Registrars (CREST participant ID RA10), no later than 48 hours before the time appointed for the meeting. For this purpose, the 
time of receipt will be taken to be the time (as determined by the time stamp applied to the message by the CREST Applications Host) from 
which the Company’s agent is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST.
  CREST members and, where applicable, their CREST sponsors or voting service provider(s) should note that Euroclear UK and Ireland does 
not make available special procedures in CREST for any particular messages. Normal system timings and limitations will therefore apply in 
relation to the input of CREST Proxy Instructions. It is the responsibility of the CREST member concerned to take (or, if the CREST member 
is a CREST personal member or sponsored member or has appointed a voting service provider(s), to procure that his CREST sponsor or 
voting service provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of the CREST system 
by any particular time. In this connection, CREST members and, where applicable, their CREST sponsors or voting service provider(s) are 
referred in particular to those sections of the CREST Manual concerning the practical limitations of the CREST system and timings. 
  The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a) of the Uncertificated 
Securities Regulations 2001. 47 Kellan Group plc Annual report and accounts 2007
Form of proxy
For use at the Annual General Meeting of The Kellan Group plc convened for Monday 19 May 2008 at 10.00am at Berkeley House, 11–13 Ockford Road, 
Godalming, Surrey, GU7 1QU.
I/We  of 
(FULL NAME IN BLOCK CAPITALS)
being (a) member(s) of The Kellan Group plc hereby appoint:
(1) the Chairman of the meeting; or 
(2) (Name)  of
 (Address)
 (see notes 1 and 2) 
as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held at Berkeley House, 11–13 Ockford Road, 
Godalming, Surrey GU7 1QU at 10.00am on Monday 19 May 2008 and at any adjournment of the meeting, I/We direct my/our proxy to vote 
as indicated below and, on any other resolutions, as he or she thinks fit.
 ORDINARY RESOLUTIONS FOR AGAINST
 1  To receive and adopt the directors’ report and the audited financial statements for the year  
ended 31 December 2007.
 2 To re‑appoint BDO Stoy Hayward LLP as auditors and to authorise the directors to fix their remuneration.
 3 To re‑appoint J Rose as a director.
 4 Authority to allot ordinary shares up to a nominal value of £580,575.
 SPECIAL RESOLUTION  FOR AGAINST
 5 Authority to allot ordinary shares up to a nominal value of £261,529 on a non pre‑emptive basis.
Signature(s)  Dated 
Notes
1.  A member entitled to attend and vote at the meeting is also entitled to appoint one or more proxies to attend and, on a poll, vote instead of him/her. A member who wishes 
to appoint a proxy of his own choice should delete the words ‘the Chairman of the meeting’ and complete, in the space provided above, the name and address of the person 
so appointed.
2.  A proxy need not be a member of the Company.
3.  To appoint more than one proxy you may photocopy this form. On the original and each copy of this form please indicate the relevant proxy holder’s name and the number 
of shares in relation to which they are authorised to act as your proxy (which, in aggregate, should not exceed the number of shares held by you). Please also indicate 
if the proxy instruction is one of multiple instructions being given. All forms must be signed and should be returned together in the same envelope.
4.  Please insert an ‘X’ in either the ‘FOR’ or ‘AGAINST’ box. If both boxes are left blank, the proxy will vote or abstain as he/she thinks fit.
5.  The summaries of the resolutions above are for guidance only. You are advised to read the accompanying Notice of Meeting and explanatory notes carefully.
6.  This instrument of proxy shall cease to be valid after the expiration of 12 months from the date of its execution except that it will remain valid after that for purposes 
of a poll or an adjourned meeting if the meeting at which the poll was demanded or the adjournment moved is held within the 12 month period.
7.  Completion and return of this form of proxy will not preclude shareholders from attending and voting in person at the meeting or adjournment of the meeting. 
8.  To be effective, this form of proxy should be executed by or on behalf of the appointor, or, if the appointor is a corporation, under the hand of a duly authorised officer 
or attorney. 
9.  To be valid for the meeting, this form of proxy should be completed, signed and lodged (together with any power of attorney or any other written authority under which 
it is executed or a notarially certified copy of such authority or certified in some other way approved by the Board) with the Company’s registrar, Capita Registrars, 
The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU, not less than 48 hours before the time for holding the meeting or, in the event of an adjournment, not less 
than 48 hours before the time of the adjournment. 
10.  In the case of joint holders, this form of proxy may be signed by any one of such joint holders, but the names of all the joint holders must be stated. The vote of the senior 
holder who tenders a vote, whether in person or by proxy, will be accepted to the exclusion of the votes of the other joint holders. For this purpose, seniority will be determined 
by the order in which the names stand in the register of members in respect of the joint holding.
11. Any amendments made to this form of proxy must be initialled by the person who signs it.
12.  In accordance with Regulation 41 of the Uncertificated Securities Regulations 2001, only those shareholders entered in the register of members of the Company as at 
6.00pm on Saturday 17 May 2008 or, in the event that the meeting is adjourned, in the register of members at 6.00pm on the second day prior to the day of any adjourned 
meeting, shall be entitled to attend or vote at the meeting in respect of the number of shares registered in their name at that time. Changes to entries in the register of members 
after 6.00pm on Saturday 17 May 2008 or, in the event that the meeting is adjourned, in the register of members after 6.00pm on the second day prior to the day of the adjourned 
meeting, shall be disregarded in determining the rights of any person to attend or vote at the meeting or at any such adjournment. 
13.  CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so for the meeting and any adjournment(s) thereof 
by using the procedures described in the CREST Manual. CREST personal members or other CREST sponsored members who have appointed a voting service provider(s) 
should refer to their CREST sponsor or voting service provider(s), who will be able to take the appropriate action on their behalf. 
  In order for a proxy appointment or instruction made by means of CREST to be valid, the appropriate CREST message (a “CREST Proxy Instruction”) must be properly 
authenticated in accordance with Euroclear UK and Ireland’s specifications and must contain the information required for such instructions, as described in the CREST 
Manual. The message must be transmitted so as to be received by the Company’s agent, Capita Registrars (CREST participant ID RA10), no later than 48 hours before the 
time appointed for the meeting. For this purpose, the time of receipt will be taken to be the time (as determined by the time stamp applied to the message by the CREST 
Applications Host) from which the Company’s agent is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST.
  CREST members and, where applicable, their CREST sponsors or voting service provider(s) should note that Euroclear UK and Ireland does not make available special 
procedures in CREST for any particular messages. Normal system timings and limitations will therefore apply in relation to the input of CREST Proxy Instructions. It is the 
responsibility of the CREST member concerned to take (or, if the CREST member is a CREST personal member or sponsored member or has appointed a voting service 
provider(s), to procure that his CREST sponsor or voting service provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means 
of the CREST system by any particular time. In this connection, CREST members and, where applicable, their CREST sponsors or voting service provider(s) are referred 
in particular to those sections of the CREST Manual concerning the practical limitations of the CREST system and timings. 
 The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001. 
 business reply style
Business Reply
Licence Number
MB122
Capita Registrars
Proxies Department
PO Box 25
Beckenham
Kent
BR3 4BR
first fold
second fold
third fold and tuck in Cert no. SGS-COC-O620 Kellan Group plc
11–13 Ockford Road 
Godalming
Surrey GU7 1QU
T: 01483 414 141
general.enquiries@kellangroup.co.uk
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