Idox plc  Annual Report & Accounts 2013
idoxplc.com
Idox plc
Second Floor, Chancery Exchange
10 Furnival Street, London, EC4A 1AB
T +44 (0) 870 333 7101 
F +44 (0) 870 333 7131 
E investors@idoxplc.com
Annual Report
& Accounts 2013 Strategic Report
1 Financial and Operational Highlights
2 Idox plc at a Glance
4 Chairman’s Statement
6 Chief Executive’s Report
10 Business Model and Principal Risks
11 Key Performance Indicators
Governance
12 Board of Directors
14 Directors’ Report
18 Report on Remuneration
21 Corporate Governance Report
26 Report of the Audit Committee
Financial Statements
27 Independent Auditor’s Report to the Members of Idox plc
28 Consolidated Statement of Comprehensive Income
30 Consolidated Balance Sheet
32 Consolidated Statement of Changes in Equity
34 Consolidated Cash Flow Statement 
35 Notes to the Accounts
84 Independent Auditor’s Report to the Members of Idox plc 
85 Company Balance Sheet
86 Notes to the Company Financial Statement
Company Information
96 Company Information
Idox plc is a supplier of software solutions 
and services to the UK public sector and 
increasingly to highly regulated asset  
intensive industries around the world in  
the wider corporate sector.
Public Sector Software 
The Public Sector Software division (PSS) 
provides market leading software and 
related services to over 90% of UK local 
authorities in the fields of land and property 
management, regulatory services, waste 
management, social care and finance. The 
division is the leading grants information 
provider in both the UK and the Netherlands 
specialising in the development of innovative 
online content portals delivered across 
Europe including the European Commission 
and UK and Irish governments.
Engineering Information 
Management
The Idox Engineering Information 
Management (EIM) division is represented 
by McLaren Software. McLaren provides 
information management solutions for major 
capital projects and asset operations as 
well as construction projects and facilities 
management to help reduce risk and 
improve safety, profitability compliance  
and performance. McLaren solutions  
are available in the cloud, on premise  
or privately hosted. 
Contents
About Idox Idox plc Annual Report and Accounts 2013 01
• Revenues from continuing operations up 3% to £57m (2012: £55m*)
•  Engineering Information Management Division revenues now 34%  
of total (2012: 32%)
•  33% of revenues generated internationally (2012: 33%) with growth  
in mainland Europe and a decline in the US
• Adjusted EBITDA** fell 9% to £15.0m (2012: £16.6m) 
• Adjusted profit before tax*** £13.2m (2012: £14.8m) 
• Profit before tax down 5% to £7.5m (2012: £7.9m) 
• Adjusted EPS*** 3.53p (2012: 3.83p), Basic EPS 2.17p (2012: 1.94p)
•  Final proposed dividend of 0.4p (2012: 0.4p), total for year 0.7p  
(2012: 0.675p), 4% increase over last year
•  In 2013, 61% of Public Sector revenue and 51% of EIM revenue were  
from recurring business
•  Completed and integrated £2m of acquisitions funded by cash flow and 
acquisition debt facility resulting in year-end net debt of £19.8m (2012: £21.5m) 
• Idox Elections appointed by Norwegian Ministry for general election
•  Acquisition of Artesys International extending geographical reach of 
Engineering Information Management into Africa
• Since September, EIM division has won three new contracts worth over $5.5m
• Disposal of non-core recruitment business TFPL Limited
*  Adjusted from £57.9m due to sale of TFPL Ltd in June 2013
**    Adjusted EBITDA is defined as earnings before goodwill impairment, amortisation, depreciation, restructuring,  
acquisition and share option costs
***  Adjusted profit before tax and adjusted EPS excludes amortisation, restructuring, acquisition and share option costs
Financial and Operational Highlights Idox plc Annual Report and Accounts 2013 02
At a Glance
Strategic Report
Idox plc is a supplier of software solutions and services to  
the UK public sector and increasingly to highly regulated  
asset intensive industries around the world in the wider 
corporate sector.
Glasgow, UK: 
Research & Development, 
Engineering Information 
Management
Wilmslow, UK: 
Public Sector Software
Newbury, UK: 
Public Sector Software
London, UK: 
Global H.Q.
Idox customer locations
Idox offices
Rennes, France:  
Engineering Information 
Management
Brussels, Belgium:  
Public Sector Software
Paris, France:  
Engineering Information 
Management
Northern Ireland: 
Public Sector Software
San Francisco, USA:  
Engineering Information 
Management
Houston, USA:  
Engineering Information 
Management
Frankfurt, Germany: 
Engineering Information 
Management Idox plc Annual Report and Accounts 2013 03
Goor, Holland:  
Public Sector Software
Perth, Australia:  
Engineering Information Management
Pune, India:  
Development, Engineering 
Information Management
Utrecht, Holland:  
Public Sector Software Idox plc Annual Report and Accounts 2013 04
2013 was a disappointing year for Idox, following 
an outstanding 2012. Our core Public Sector 
Software Division (PSS) has continued to 
perform strongly, but our Engineering Information 
Management Division (EIM) failed to complete 
the required number of large scale Enterprise 
software sales in the period, although most of 
these prospects remain to be completed in what 
continues to be a substantial pipeline. Therefore 
profit before tax from continuing operations fell 
by £429,000 on a modest £1.9 million rise in 
continuing Group revenues. 
As a result we have taken a number of positive 
actions including strengthening and deepening 
our senior management team overall where there 
have been a number of significant changes, 
particularly in the EIM division which begins the 
year under new leadership. This includes adding to 
the group management capability by recruiting a 
corporate lawyer. This process will culminate in the 
appointment of a new Group CFO to the Board.
During the year we have also taken the 
opportunity to restructure and simplify Idox by 
disposing of the non-core recruitment division 
TFPL Limited. We have refocused the business 
on our core two divisions; Public Sector Software 
(PSS) and Engineering Information Management 
(EIM). Our Information Solutions business which 
largely supplies the public sector with content 
has been absorbed and integrated into the PSS 
division. This continuing integration process 
together with the termination period of a number 
of UK building leases will afford us considerable 
cost rationalisation opportunities in the current 
financial year. 
We continue to place greater emphasis on 
longer term customer relationships in our PSS 
division and increasingly in EIM as well, through 
managed service and “zero infrastructure” 
client agreements utilising our data centres and 
cloud based solutions. In PSS we have been 
successful in winning a number of notable clients 
from our competition on this basis and we are 
now adopting this model for EIM which has 
already proven successful, with the award of 
long-term extensions to two existing document 
management managed service contracts, worth 
over USD 3 million in total for the first year.
The extension of the business into international 
markets has continued and now includes the 
PSS division where we have won a significant 
portion of the Norwegian government election 
management business. We now have an 
EIM presence in Africa’s fast growing energy 
sector via our acquisition of Artesys, and the 
large Enterprise sale we secured with PSEG 
Nuclear in New Jersey, USA has deepened our 
increasing involvement with the nuclear industry 
in three continents. Despite the disappointments 
in EIM, the division has increased its overall 
significance to the Group accounting for 34% of 
revenues (2012: 32%), with EMEA sales enjoying 
positive momentum. We remain confident that 
opportunities in North America, where the historic 
focus of our business is, as well as across the rest 
of the world, will come through this year and in 
the future as large organisations start committing 
greater amounts of their generally improving cash 
reserves to corporate asset infrastructure renewal 
and development. 
“ …we have taken a 
number of positive actions 
including strengthening 
and deepening our senior 
management team…”
Chairman’s Statement
Strategic Report Idox plc Annual Report and Accounts 2013 05
In terms of governance and risk management, 
we took on board that we needed to strengthen 
and deepen our management capability as we 
are now a much larger global organisation than 
we were last year, with our clients operating 
across many industries and across much of the 
developed and developing world. Idox has had a 
long tradition of running a very lean business in 
terms of costs and people and we now recognise 
that we need more depth and capability across 
the Group to manage our newer activities 
around the world and provide more cover and 
support when needed in critical management 
positions. In addition, the complexities of the 
sales process for both software and services in 
large global organisations means we need to be 
more competitive in terms of management skills. 
We have achieved this during the last year by 
external recruitment, internal promotion and some 
departures which will put us in a much stronger 
position for 2014. 
We have also continued to add to the capability 
and independence of our board by recruiting 
Jeremy Millard of Smith Square Partners and 
lately of Rothschild as a financially and technically 
experienced Chartered Accountant and City 
professional in the TMT sector. Jeremy joins 
the board as a non-executive director. Jeremy 
was awarded a first class honours engineering 
degree at Cambridge and honed his operational 
management skills at Mars and the Ministry of 
Defence before moving into corporate finance. 
During the year Christopher Wright stood down 
as our longest serving non-executive director 
having joined the board ahead of Idox’s flotation. 
Christopher‘s international investment banking 
and management background, together with 
his advice on the board has been of great value 
and we wish him well for the future. This board 
development process will continue in the current 
financial year with the further appointment of an 
experienced non-executive director familiar with 
the larger size of organisation to which we aspire.
Notwithstanding the disappointing trading year, 
the board proposes subject to shareholder 
approval a final dividend of 0.4p, resulting in a 
total of 0.7p for the year, a modest 3.7% increase 
over 2012, in line with maintaining our progressive 
dividend policy.
I would like to thank our staff, advisers and 
shareholders for their support in what has been 
a challenging year for the Group. Such difficult 
times require that extra degree of fortitude, but 
the board believes that, following the streamlining 
of the business and operational and management 
changes that have been implemented, the Group 
is now better positioned to build on its underlying 
strengths and high market share in its two chosen 
markets to deliver an improved 2014. 
Martin Brooks
Chairman
21 January 2014
Revenue
£57,319k 
2012: £55,382k
2009: £27,398k
2010: £27,883k
2011: £35,231k
2012: £55,382k
2013: £57,319k Idox plc Annual Report and Accounts 2013 06
We are disappointed to report a set of results 
for the Group for the year which are below our 
expectations at the start of 2013, although 
they do not truly represent the substantial 
improvements that have been made this year. 
We do believe we have made good progress 
and are laying good foundations to make further 
progress in the years ahead.
We started the year with some challenging, 
and over optimistic goals and objectives, and 
immediately met some head winds that blew 
us off course. Illness, macro-economic and 
market factors, growth pains from the merger 
of several businesses, and the loss of key 
staff all contributed to a slow start to the year. 
The recovery has been challenging alongside 
addressing a number of issues in the business, 
but the strong second half performance attests 
to resolving those issues.
The PSS division started the year slowly but 
gathered momentum throughout the period 
resulting in our most successful year yet in 
market share gains with over 108 new systems 
(2012: 76) won in the year. The challenge in 
2013 which depressed revenues, came from the 
change in mix away from software purchases to 
more managed and hosted solutions. Although 
signed order value was 69% up on the previous 
year, recognisable revenue is only marginally 
up. The division ended the year with over 90% 
market share in its core target markets and with 
encouraging wins in other local government 
departments where we have been asked to assist 
in delivering improved services at lower cost. 
This year has seen the division begin to expand 
into overseas territories, winning its first frame 
work agreement for elections in Norway and 
supplying to 30% of the Norwegian market. 2014 
will see further investment to sow the seeds for 
overseas expansion in 2015. The division has 
continued to improve its operational efficiency 
as well as successfully deliver all its services on 
time, thus building on our goal to be the partner 
of choice for local government.
The EIM division had a challenging year. The 
31% growth in revenues in 2012 which added 
size and complexity to the business, the roll-
out of large contracts, the addition of two 
acquisitions, and the impact of large macro-
economic factors deferring decisions in the 
customer base, caused a few problems which 
it has taken time to respond to. The expected 
growth in Asia and the execution of large 
enterprise deals were delayed due to customer 
nervousness around economic factors and a 
focus to improve return on existing assets, rather 
than to invest in the future. The integration of 
our acquisitions have proven challenging both in 
cultural fit and language issues, but this is close 
to being behind us. We started the year looking 
to strengthen the management team and this 
has taken the whole year to achieve with new 
management in professional services, and the 
appointment of a new divisional CEO. 
In spite of all of this the division still managed to 
introduce new mobile Apps, web-based enquiry 
tools, communication and interoperability 
interfaces between the various systems, 
“ We started the year  
with some challenging,  
and over optimistic goals 
and objectives…”
Chief Executive’s Report
Strategic Report Idox plc Annual Report and Accounts 2013 07
internationalisation of the products, Building 
Information Management (BIM) compliance 
for Architectural Engineering and Construction 
(AEC) customers, integrated document and 
facilities management, as well as upgrades 
to the customer interfaces, and to broaden 
the ability of the systems to extend from feed, 
design, deliverables, into operations with the 
acquisition of Artesys. Artesys is also close 
to delivering an upgrade to their solution in 
collaboration with Documentum using their D2 
platform. New contract wins were disappointing 
as they were in line with the previous year’s 
activity levels, excluding last year’s two large 
enterprise sales wins.
McLaren also launched its first BPO service in 
the year and it has subsequently expanded this 
by the year end.
The Information Solutions division was merged 
into the PSS division to streamline the business 
and drive further operating efficiencies. Its 
project work continued to be adversely affected 
by government cut backs and it did not manage 
to increase its managed content service 
revenues. The Dutch business grew market 
share but this was offset by the reduction in  
the Dutch government grant rate. 
Outlook 
The focus for 2014 and beyond is on  
improving organic growth, operational 
improvement and innovation. 
We will continue to concentrate on growing top 
line revenue in both parts of the business which 
is now refocused on our two core activities, and 
look to expand our public sector business into 
new areas both in the UK and overseas. We also 
expect to close a large proportion of the EIM 
pipeline deals, now we have bolstered the senior 
management team and improved the way we 
respond to our customers’ requirements.
Our aim is to continue to grow our non UK 
revenues and to invest to strengthen our domain 
specific expertise in our chosen markets.
We believe the Group is well placed to benefit 
from an improving economic outlook and today 
has the technical capability to deliver unique 
solutions to its customers and future proof their 
investment and commitment in Idox’s solutions. 
Financial Review
Group revenues from continuing operations 
grew by 3% to £57m (2012: £55m) due to 
organic growth in the PSS division and the 
impact of the three acquisitions made during 
2012. The Group maintained the geographical 
split of its revenues with 33% generated outside 
of the UK (2012: 33%). Gross profit earned 
was 4% higher at £52m (2012: £50m) and the 
Group saw an increase in gross margin from 
90% to 91% as a result of an increased mix 
of higher margin software business. Earnings 
before goodwill, amortisation, depreciation, 
restructuring, acquisition and share option 
costs (“Adjusted EBITDA”) decreased by 9% to 
£15m (2012: £16.6m) with EBITDA margins of 
26% (2012: 30%).
Performance by segment
The Group made a significant step forward to 
increase the focus of the business with the sale of 
its recruitment business at the half year. Following 
the disposal, the Group has been reorganised 
into two operating segments; Public Sector 
Software, the merger of the original public sector 
business and Information Solutions divisions, and 
Engineering Information Management.
The PSS division, which accounted for 66% of 
Group revenues (2012: 68%), delivered revenues 
of £38m (2012: £37.6m). Product and services 
revenue grew organically by 10% on the previous 
year. Election revenue remained stable at £2.4m, 
reflecting a real decrease from 2012. It benefited 
from the full year impact of the acquisition of 
Opt2Vote election managed services business in 
March 2012, and the expansion of that business 
into Norway, but this was offset by the absence 
of revenue from fewer local elections in 2013. 
Solutions project income fell by 54% (£0.4m) due 
to a lack of tenders in poor market conditions. Idox plc Annual Report and Accounts 2013 08
Recurring revenues within the PSS division were 
61% (2012: 62%) excluding election revenue. 
The decrease in recurring revenues is due to the 
wind down of the capital value of the managed 
service contracts acquired in March 2010 for 
the provision of land and property information 
solutions. Renewal rates on grant subscriptions 
performed well in poor market conditions and 
remained consistent with prior years. Divisional 
Adjusted EBITDA fell by 5% to £10.6m (2012: 
£11.3m), delivering a 28% margin, a 2% drop 
on 2012 due to the inclusion of the lower gross 
margin e-learning and solutions training and 
information projects business. 
The EIM division accounted for 34% of Group 
revenues (2012: 32%) and had revenue growth 
of 8% to £19.2m (2012: £17.7m). This growth 
represents a full year of FMx and seven months 
of Artesys acquired on 9 April 2013. Visibility of 
revenue in the EIM business has also increased 
during the year with 51% (2012: 48%) of 
revenues coming from recurring maintenance 
and Software-as-a-Service (“SaaS”) contracts. 
The business is also becoming increasingly 
international within 76% of revenues generated 
outside the UK; 46% USA, 22% Europe and 
Asia, and 8% from Australia.
EBITDA for the EIM business decreased to 
£4.4m (2012: £5.3m), 29% of the Group total. 
The decrease represents the reduction in licence 
deals in comparison to 2012 offset by additional 
contributions from FMx and Artesys plus cost 
synergies. Margins decreased to 23% (2012: 
30%) reflecting the absence of organic growth 
on licence sales and the impact of integration 
costs relating to the acquired businesses. 
Profit before tax
Within the income statement, we present both 
profit before tax and adjusted profit before tax 
which is a performance measure that is not 
defined by GAAP but which the directors believe 
provides a reliable and consistent measure of 
the Group’s underlying financial performance. 
Adjusted profit before tax and adjusted EPS 
excludes amortisation, restructuring, acquisition 
and share option costs. 
Adjusted profit before tax decreased 10% to 
£13.2m (2012: £14.8m). Staff costs increased by 
8% to £28m (2012: £26m). The £2.5m increase 
in staff costs was due to 12 months of the 2012 
acquisitions and 7 months of Artesys. Real 
staff costs fell as a result of cost savings. Other 
administrative expenses increased by 18% to 
£8.9m (2012: £7.5m). 48% of the increase was 
due to a full year of acquisitions and the new 
acquisition in 2013. Travel costs increased due 
to increased revenues in new territories with the 
elections and EIM businesses.
Financing costs reduced from £1.3m to £1.2m 
and includes interest payable of £0.9m (2012: 
£0.9m) and amortisation of the loan facility fees 
of £0.16m (2012: £0.2m). 
Reported profit before tax decreased by 5% to 
£7.5m (2012: £7.9m). Amortisation of intangibles 
increased from £4.6m to £5.3m as a result of 
acquisitions made during the year and a full year 
of 2012 acquisitions. Restructuring charges of 
£0.5m (2012: £0.4m) relate to the integration of 
acquisitions made during the year plus internal 
reorganisations. There was a one off benefit of 
£0.8m included in acquisition costs related to the 
release of earn-out obligations on the Opt2Vote 
acquisition which did not become payable. 
Excluding this £0.8m benefit acquisition costs 
reduced to £0.2m (2012: £1.1m) representing 
£0.64m acquisition costs for Artesys and other 
aborted acquisition fees.
Chief Executive’s Report continued
Strategic Report Idox plc Annual Report and Accounts 2013 09
The Group continues to invest in developing 
innovative technology solutions and has 
incurred capitalised Research and Development 
costs of £1.3m (2012: £0.8m). Research and 
development costs expensed in the year were 
£3.8m (2012: £3.2m).
Taxation
The Group’s effective tax rate for the year 
was -12.75% compared to 3% in 2012. The 
reduction in the effective rate of tax is the result 
of recognition of a deferred tax asset in relation 
to previously unrecognised losses within the 
EIM business and recognition of a deferred tax 
asset in respect of share options. Excluding the 
effect of recognising the deferred tax asset the 
effective tax rate was 13%. Unrelieved trading 
losses of £2,652,000 in the UK remain available 
to offset against future taxable trading profits. 
Unrelieved trading losses arising overseas of 
£3,286,000 have been recognised during the 
year. The board believe the Group will benefit 
from these tax losses in the future.
Earnings per share and dividends
Adjusted earnings per share fell 8% to 3.53p 
(2012: 3.83p). Diluted adjusted earnings per 
share fell 7% to 3.38p (2012: 3.63p). 
Basic earnings per share were up 12% to 
2.17p (2012: 1.94p). Diluted earnings per share 
increased by 13% to 2.07p (2012: 1.84p). 
The Board proposes a final dividend of 0.4p, to 
give a full year dividend of 0.7p (2012: 0.675p). 
Subject to approval at the Annual General 
Meeting, the final dividend will be paid on 
25 April 2014 to shareholders on the register  
at 11 April 2014. 
Balance sheet and cashflows
Idox’s balance sheet continued to strengthen 
during the year and at 31 October 2013 net 
assets were £44.7m compared to £38.9m at 
31 October 2012. 
Cash generated from operating activities before 
tax as a percentage of Adjusted EBITDA was 
79%, up from 75% in the previous year. 
The Group ended the year with net debt of 
£19.8m (2012: £21.5m) after making acquisition 
related payments (net of cash acquired) of £1.8m 
and after total dividends of £2.4m. The Group’s 
total signed debt facilities at 31 October 2013 
stood at £30.4m, a combination of a term loan 
and flexible working capital and acquisition 
revolving credit facilities. The working capital 
facility of £8m is due to expire during the next 
12 months, however this is expected to be 
renegotiated with the bank on similar terms; the 
Company have not sought written confirmation 
that the facility will be renewed. The board has 
considered the headroom in the bank facilities 
and are comfortable that unless there was 
a substantial deterioration in trading, Group 
budgets do not indicate any covenant breaches 
on the bank facilities currently in place.
Deferred income, representing invoiced 
maintenance and SaaS contracts yet to be 
recognised in revenue stood at £13.9m at 
31 October 2013 (2012: £13.5m), increasing 
visibility of revenue in the new financial year.
Richard Kellett-Clarke
Chief Executive Officer
21 January 2014 Idox plc Annual Report and Accounts 2013 10
Our business model
To provide specialist document management collaboration solutions and services to the UK  
public sector and highly regulated asset intensive industries around the world and in the wider 
corporate sector.
Our strategy is to become the partner of choice due to our domain expertise, continued innovation, 
quality of service and guaranteed delivery. Through this focus on quality and delivery we expect to 
demonstrate to our customers’ improvements in operational efficiency and return on investment  
which will in return result in us increasing our market share, growing organically and internationally.
Principal Risks and Uncertainties
The Board review the principal risks and uncertainties on a regular basis. The principal risks and 
uncertainties affecting the Group include the following:
Principal risks Management of risks
Economic conditions in markets suppress  
organic growth
Diversification of customers and  
geographical markets
Competitor products deliver increased capabilities Investment in research and development 
Barriers to entry in new markets Strategic partnerships
Loss of skills and knowledge Investment in and consultation of staff
Product failure Robust market research, product testing  
and competitor awareness 
Performance management
Failure to complete sales pipeline Robust process in place to fully qualify orders
The principal risks involved in delivering our strategy are actively managed and monitored against our 
risk appetite.
• Political – the Group has a large customer base in local government. A change in spending 
priorities by the current or a future Government could materially impact the Group. However this 
risk is mitigated due to the contractual nature of the recurring revenue in the Group. The Group has 
increased diversification of its customer base through acquisitions to mitigate against political risks.
• Economic – the software area of the business could be adversely affected if the government 
reduces the grants to local authorities in an economic downturn. However, all indications are that 
the government will maintain and may increase the grants during such a period. The Group has 
increased diversification through acquisitions to mitigate against economic risks.
• Competitors – the Group has certain competitors for its software products. To mitigate this risk, the 
Group continues to invest in and develop its software. Competitor risk is also mitigated through the 
long term nature of customer relationships and recurring software maintenance revenue.
• Acquisitions – the Group could be materially impacted if an acquisition does not perform in line 
with expectations. To mitigate this risk, for each acquisition due diligence and integration planning 
is undertaken and all potential synergies identified.
Business Model and Principal Risks
Strategic Report Idox plc Annual Report and Accounts 2013 11
Key performance indicators
Key financial performance indicators for continuing operations, including the management of 
profitability and working capital, monitored on an ongoing basis by management are set out below.
Indicator 2013 2012 Measure
Revenue (£000) 57,319 55,382
Profitability ratios
Gross margin 91% 90% Gross profit as a percentage of revenue
EBITDA 26% 30% Profit before interest, tax, depreciation, amortisation, 
acquisition costs, share option costs and impairments 
as a percentage of revenue
Other indicator
Debtor days 65 78 Year end trade debtors divided by revenue,  
multiplied by 365 days
Non-financial indicators
Idox Group practises an integrated management system centred around its ISO accreditations as follows:
Quality Management The Group quality policy has been accredited to BS EN ISO 9001:2008 
for the development and the sale of products for document, content and 
information management.
Environmental 
Management
The Group environmental management system has been assessed and 
approved to accredited BS EN ISO 14001:2004, the approved systems 
applying to the following: the development and sale of products for document, 
content and information management.
Information Security 
Management
The Group information security management policy has been accredited 
to BS EN ISO 27001:2005, the approved systems applying to the following: 
for the development and the sale of products for document, content and 
information management.
Composition of the Board
The Board of Directors is comprised of 20% female staff members. 
Signed on behalf of the board by:
Richard Kellett-Clarke
Chief Executive Officer
21 January 2014
Key Performance Indicators Idox plc Annual Report and Accounts 2013 12
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2
5
4
3
Board of Directors
1 Martin Brooks (Aged 63)
Chairman 
Martin Brooks was previously founding chief 
executive of Financial Times Information, creating 
the global market leader in securities valuation 
data on acquiring Interactive Data Corporation. 
Before joining the FT and a 30 year career in 
TMT businesses, including six years as MD of 
Extel Financial, he served with the 7th Gurkha 
Rifles. He has also been an adviser or director to 
other organisations including the ICAEW, where 
he chaired its publishing arm and is currently 
chairman of the Cornwall Development Company 
and a trustee of the Gurkha Museum.
2 Richard Kellett-Clarke (Aged 59)
Chief Executive Officer 
Richard Kellett-Clarke has 28 years of directorial 
experience. He joined Idox first as CFO in 2006, 
then COO in 2007. He was appointed CEO 
in November 2007. Before this he has held a 
number of CFO appointments with Brady plc, 
Pickwick Group plc, and in subsidiaries of 
Pearson PLC and Invensys plc. In addition, he 
was a founder and Managing Director of AFX 
NEWS Ltd, now part of Thomson Reuters, IT 
Director of Financial Times Information, and 
Founding Director of Sealed Media Ltd, a DRM 
Internet start up (now part of Oracle). In 2011  
he joined the board of dotDigital Group plc as  
a Non-Executive Director.
Governance Idox plc Annual Report and Accounts 2013 13
5 Jeremy Millard (Aged 42)
Non-Executive Director 
Jeremy is a partner of Smith Square Partners 
LLP, where he provides corporate finance advice 
to companies primarily in the Technology sector. 
Prior to this, he spent five years at Rothschild, 
based in their London office, advising clients on 
all aspects of corporate finance, including on 
a number of major cross-border transactions 
encompassing Europe, North America and the 
Middle East. Between 2001 and 2007 , Jeremy 
worked at Hawkpoint Partners where he had a 
strong focus on advising mid-market UK listed 
companies. He has also worked for the UK 
Ministry of Defence and Mars Snack Foods, 
qualified as a chartered accountant in 1999,  
and holds an M.Eng from Cambridge University.
4 Professor Dame Wendy Hall (Aged 61)
Non-Executive Director 
Wendy Hall is Professor of Computer Science at 
the University of Southampton and Dean of the 
Faculty of Physical Sciences and Engineering, 
a Fellow of the Royal Society, as well holding 
many other Fellowships, honorary degrees and 
awards, including from: the Royal Academy 
of Engineering; the Association of Computing 
Machinery; and the British Computer Society. 
Wendy has been a member of the Prime 
Minister’s Council for Science and Technology, a 
member of the Scientific Council of the European 
Research Council and a council member of the 
EPSRC. She was the holder of an EPSRC Senior 
Fellowship from 1996–2002. 
3 Rt. Hon. Peter Lilley MP (Aged 70)
Non-Executive Director 
Peter Lilley, MP for Hitchin and Harpenden,  
was Parliamentary Private Secretary to  
Ministers for Local Government and after a 
period at the Treasury served as Secretary  
of State for Trade and Industry and Secretary 
of State for Social Security until 1997. He is a 
Non-Executive Director and Deputy Chairman 
of Tethys Petroleum Ltd: and serves on the 
Advisory Board of YiMei Capital. He is the  
senior independent Non-Executive Director  
of Idox and chairs the Audit Committee. Idox plc Annual Report and Accounts 2013 14
Governance
The Directors are pleased to submit their report and audited financial statements for the year ended 
31 October 2013.
Results and Dividends
The Group audited financial statements for the year ended 31 October 2013 are set out on pages 
28 to 83. The Group’s profit for the year after tax amounted to £8,364,000 (2012: £7,741,000). The 
Directors paid a dividend of 0.30 pence per share in the first half of the 2013 financial year, in respect 
of the year ended 31 October 2013. The Directors will propose, at the forthcoming AGM, a final 
dividend of 0.40 pence per share in respect of the year ended 31 October 2013. 
Directors and their Interests
The Directors who served during the year and their beneficial interests (including those of their 
immediate families) in the Company’s 1p ordinary share capital were as follows:
Number of shares
31 October 2013 1 November 2012
Rt. Hon. Peter Lilley MP* 533,000 533,000
Martin Brooks ** 7,970,027 7,901,527
Richard Kellett-Clarke*** 9,904,336 9,898,466
Prof. Dame Wendy Hall 27,225 27,225
Jeremy Millard – –
*   45,150 (2012: 45,150) of these shares are held through a Self Invested Pension Plan and 59,250 (2012: 80,250) shares are 
held through certain members of his family.
**  3,198,948 (2012: 3,130,448) of these shares are held through a Self Invested Pension Plan and 3,019,231 (2012: 3,019,231) 
shares are held through certain members of his family.
***  2,761,667 (2012: 2,761,667) of these shares are held through Self Invested Pension Plans and 1,553,231 (2012: 784,000) 
shares are held through certain members of his family and a family trust.
In addition to the shareholdings listed above, the Directors have been granted options over ordinary 
shares. Full details of these options are given in the Report on Remuneration on pages 18 to 20.
Details of the Directors’ service contracts can be found in the Report on Remuneration on pages 18 to 20.
At the forthcoming Annual General Meeting in accordance with the Company’s Articles of Association, 
Jeremy Millard will retire and offer himself for re-election having been appointed since the last Annual 
General Meeting.
Directors’ Report
For the year ended 31 October 2013 Idox plc Annual Report and Accounts 2013 15
Substantial Shareholdings
As at 30 November 2013 the Company was aware of the following interests in 3% or more of its 
issued share capital:
Shareholder Number of shares % Holding 
Liontrust Asset Management 43,841,922 12.52%
Investec Wealth & Investment 28,067,294 8.02%
Herald Investment Management 27,940,149 7.98%
Highclere International Investors 21,166,437 6.05%
Kestrel Partners 20,021,665 5.72%
ISIS Equity Partners 17,433,409 4.98%
Octopus Investments 14,899,983 4.22%
Hargreave Hale 11,066,000 3.16%
Health, Safety and Environmental Policies
The Group recognises and accepts its responsibilities for health, safety and the environment (H,S&E) 
and has a dedicated team which provides advice and support in this area. The team members 
regularly attend external H,S&E courses and internal reviews are performed on a regular basis to 
ensure compliance with best practice and all relevant legislation.
Disabled Employees
Applications for employment by disabled persons are always fully considered, bearing in mind the 
aptitudes and abilities of the applicant concerned. 
In the event of members of staff becoming disabled, every effort is made to ensure that their 
employment with the Group continues and that appropriate training is arranged. It is the policy of 
the Group that the training, career development and promotion of disabled employees should, as  
far as possible be identical with that of other employees. 
Employee Consultation
The Group consults employees through the National Company Council (NCC). The NCC sits  
regularly during the year and is made up of representatives voted on the Council by employees.  
An employee consultation policy is also in place. Employees are encouraged to present their views 
and suggestions in respect of the Group’s performance and policies. In addition, the Group has an 
intranet which facilitates faster and more effective communication.
An Employee Share Investment Trust is in place to allow employees a tax efficient way of investing in 
the Company. The Company purchases matching shares which become the property of the employee 
after a three year vesting period. Idox plc Annual Report and Accounts 2013 16
Governance
Financial Risk Management Objectives and Policies
The Group uses various financial instruments which include cash, equity investments, bank loans 
and items such as trade debtors and trade creditors that arise directly from its operations. The main 
purpose of these financial instruments is to raise finance for the Group’s operations. 
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk, exchange 
rate risk and interest rate risk. The Directors review these risks on an ongoing basis. This policy has 
remained unchanged from previous years.
Credit Risk
The Group’s principal financial assets are cash and trade debtors. The credit risk associated with 
cash is limited as the counterparties have high credit ratings assigned by international credit-rating 
agencies. The principal credit risk arises therefore from its trade debtors. 
In order to manage credit risk, the management review the debt ageing on an ongoing basis,  
together with the collection history and third party credit references where appropriate. 
Liquidity Risk
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet 
foreseeable needs and to invest cash assets safely and profitably.
Exchange Rate Risk
The Group monitors its exposure to exchange rate risk on an ongoing basis. The Group has  
minimal exposure to foreign exchange risk as a result of natural hedges arising between sales  
and cost transactions.
Interest Rate Risk
The Group’s bank borrowings bear interest at rates linked to the LIBOR. To protect cash flows against 
movements in LIBOR the Group entered into an interest LIBOR swap agreement.
Going Concern
The Directors have reviewed the Group’s budget and cash flows for 2013 and 2014 in the context of 
the Group’s banking facilities and covenants, the level of recurring revenue within the business, the 
outlook for our chosen markets, and our current working capital resources, and are satisfied that it is 
appropriate to prepare accounts on a going concern basis. The Group have a working capital facility 
which continues to be made available. There are no events or conditions that may cast significant 
doubt about the ability of the Group to continue as a going concern. 
The working capital facility of £8m is due to expire during the next 12 months, however this is 
expected to be renegotiated with the bank on similar terms; the Company have not sought written 
confirmation that the facility will be renewed. The board has considered the headroom in the bank 
facilities and are comfortable that unless there was a substantial deterioration in trading, Group 
budgets do not indicate any covenant breaches on the bank facilities currently in place.
Directors’ Report continued
For the year ended 31 October 2013 Idox plc Annual Report and Accounts 2013 17
Post balance sheet events
On 1 November 2013 the Group issued 816,914 ordinary shares of 1p each in order to satisfy an 
exercise of employee share options. 
Website disclaimer
The maintenance and integrity of the Idox plc website is the responsibility of the directors. The work 
carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors 
accept no responsibility for any changes that may have occurred to the financial statement since they 
were initially presented on the website. Legislation in the United Kingdom governing the preparation and 
dissemination of the financial statements may differ from legislation in other jurisdictions.
Disclosure of Information to Auditor
In so far as each of the Directors is aware:
• there is no relevant audit information of which the company’s auditor is unaware; and
• the Directors have taken all steps that they ought to have taken to make themselves aware of  
any relevant audit information and to establish that the auditor is aware of that information.
Auditor
A resolution to reappoint Grant Thornton UK LLP as auditor and to authorise the Directors to agree 
their remuneration will be placed before the forthcoming Annual General Meeting of the Company.
By order of the Board
Jane Mackie Registered office 
Company Secretary 2nd Floor
21 January 2014 Chancery Exchange 
 10 Furnival Street
 London  
 EC4A 1AB Idox plc Annual Report and Accounts 2013 18
Governance
Remuneration Committee
The Remuneration Committee operates within defined terms of reference. The Remuneration 
Committee comprises the Chairman and two Non-Executive Directors and normally meets twice a 
year. It was chaired by Christopher Wright until his retirement date of 28 February 2013 and it is now 
chaired by Peter Lilley.
Remuneration Policy
The policy of the Group is to set levels of remuneration to attract, retain and motivate Executive 
Directors and key staff. The packages are designed to be competitive in value to those offered to 
the Directors of similar sized public companies in related sectors. It is the Board’s policy to align the 
interests of managers with those of our shareholders in the grant of option and other equity rewards 
which underlying securities grantees are very much encouraged to retain over the longer term.
The components of the Executive Directors’ remuneration packages are currently a basic salary, 
bonus, money purchase pension contributions and benefits in kind. The benefits include car 
allowance, private medical cover, life cover and critical illness cover. The bonus elements are 
dependent on the Executive Directors achieving performance criteria set out by the Remuneration 
Committee. The criteria include targets for revenue and profits as well as for cash balances. In 
addition, the Group operates share option schemes for the Executive Directors. 
Directors’ Remuneration 
2013
Basic  
salary  
and fees 
2013
£000
Bonus* 
2013
£000
Benefits  
in kind 
2013
£000
Total 
2013
£000
Pension 
2013
£000
Executive Directors
Richard Kellett-Clarke 275 190 12 477 –
William Edmondson  
(resigned 31 October 2013) 163 112 10 285 16
Non Executive Directors
Martin Brooks** 105 50 1 156 –
Peter Lilley 35 – – 35 –
Wendy Hall 35 – – 35 –
Jeremy Millard  
(appointed 11 June 2013) 15 – – 15 –
Christopher Wright  
(retired 28 February 2013) 23 – – 23 –
651 352 23 1,026 16
Report on Remuneration
For the year ended 31 October 2013 Idox plc Annual Report and Accounts 2013 19
2012
Basic  
salary  
and fees 
2012
£000
Bonus* 
2012
£000
Benefits  
in kind 
2012
£000
Total 
2012
£000
Pension 
2012
£000
Executive Directors
Richard Kellett-Clarke 248 141 11 400 5
William Edmondson 160 79 10 249 8
Non Executive Directors
Martin Brooks** 105 55 1 161 3
Christopher Wright 29 – – 29 –
Peter Lilley 29 – – 29 –
Wendy Hall  
(appointed 10 October 2012) 3 – – 3 –
574 275 22 871 16
* Bonus payments disclosed related to prior year performance due to the timing of award.
** Chairman
The amounts in respect of pension represent money purchase pension contributions.
Non-Executive Directors
The Board, based on a recommendation by the Chairman of the Remuneration Committee or, in the 
case of the Chairman, the remainder of the Board, determines the remuneration of the Non-Executive 
Directors. The Non-Executive Directors are not eligible to join the pension scheme. 
Service Contracts
The Executive Directors have entered into service contracts with the Group that are terminable by 
either party on not less than six months prior notice.  Idox plc Annual Report and Accounts 2013 20
Governance
Share Options 
The Directors believe it is important to incentivise key management and employees. 
The following options have been granted to the Directors over ordinary 1p shares in the Company:
Director
At start 
of year
Good 
leavers
Granted 
during 
the year Exercised Lapsed
At end  
of year
Exercise 
price
Exercise 
date 
from
Exercise 
date  
to
Richard  
Kellett-Clarke 769,231 – – – – 769,231 13p Aug 2008 Aug 2018
Richard  
Kellett-Clarke 666,667 – – – – 666,667 15p Aug 2008 Aug 2018
Richard  
Kellett-Clarke 2,439,024 – – – – 2,439,024 10.25p Mar 2010 Mar 2020
Richard  
Kellett-Clarke 2,500,000 – – – – 2,500,000 20p Mar 2011 Mar 2021
Richard  
Kellett-Clarke 300,000 – – – – 300,000 44p Sep 2012 Sep 2022
Martin Brooks 275,000 – – – – 275,000 15p Dec 2007 Dec 2017
Martin Brooks 423,077 – – – – 423,077 13p Aug 2008 Aug 2018
Martin Brooks 366,667 – – – – 366,667 15p Aug 2008 Aug 2018
Martin Brooks 975,610 – – – – 975,610 10.25p Mar 2010 Mar 2020
Martin Brooks 1,000,000 – – – – 1,000,000 20p Mar 2011 Mar 2021
Martin Brooks 300,000 – – – – 300,000 44p Sep 2012 Sep 2022
William Edmondson 1,268,293 1,268,293 – – – – 10.25p Mar 2010 Mar 2020
William Edmondson 1,500,000 1,500,000 – – – – 20p Mar 2011 Mar 2021
William Edmondson 150,000 150,000 – – – – 44p Sep 2012 Sep 2022
Christopher Wright 243,902 243,902 – – – – 10.25p Mar 2010 Mar 2020
Christopher Wright 250,000 250,000 – – – – 20p Mar 2011 Mar 2021
Peter Lilley 243,902 – – – – 243,902 10.25p Mar 2010 Mar 2020
Peter Lilley 250,000 – – – – 250,000 20p Mar 2011 Mar 2021
Totals 13,921,373 3,412,195 – – – 10,509,178
The mid market price of the Company’s shares at close of business on 31 October 2013 was 38p  
and the high and low share prices during the year were 60p and 30p respectively.
The Company recognised total expenses of £511,000 (2012: £731,000) related to equity-settled  
share-based payment transactions during the year. Expenses of £495,000 (2012: £568,000) related to 
share options granted and £16,000 (2012: £163,000) related to share options exercised.
The pre tax aggregate gain on exercise of share options during the year was £Nil (2012: £689,000).
Directors’ Share Interests
The Directors’ shareholdings in the Company are listed in the Directors’ Report on page 14.
Report on Remuneration continued
For the year ended 31 October 2013 Idox plc Annual Report and Accounts 2013 21
Corporate Governance
As the Group is listed on the Alternative 
Investment Market it is not required to comply 
with the provisions of the UK Corporate 
Governance Code (the “Code”) issued in 
September 2012. We do not comply with the 
UK Corporate Governance Code. However, we 
have reported on our Corporate Governance 
arrangements by drawing upon best practice 
available, including those aspects of the UK 
Corporate Governance Code we consider to be 
relevant to the company and best practice.
Board of Directors
The Code requires the Group to have an effective 
Board whose role is to develop strategy and 
provide leadership to the Group as a whole, as 
well as ensuring a framework of controls exist 
which allow for the identification, assessment and 
management of risk, ultimately taking collective 
responsibility for the success of the Group.
The Board is responsible for the overall 
strategy and direction of Idox Group plc as well 
as for approving potential acquisitions, major 
capital expenditure items, disposals, annual 
budgets, annual reports, interim statements 
and financing matters. 
The Board considers the appropriateness of 
its accounting policies on an annual basis. The 
Board believes that its accounting policies are 
appropriate in particular in relation to income 
recognition and research and development.
Financial results with comparisons to budget 
and forecast results are reported to the Board 
on a monthly basis together with a commercial 
report on operational issues. Significant 
variances from budget or strategy are 
discussed at Board meetings and actions  
set in place to address them.
The Board met eight times throughout the year 
to discuss a formal schedule of business with all 
Directors in attendance. The Board is supplied 
in a timely manner with information in a form and 
of a suitable quality appropriate to enable it to 
discharge its duties. Advice from independent 
sources is available if required. The Group has a 
highly committed and experienced Board, which 
is supported by a senior management team, with 
the qualification and experience necessary for 
the running of the Group.
Role of Chairman and  
Chief Executive Officer
The Code requires that there should be a clear 
division of responsibilities between the running of 
the Board and the executive responsible for the 
Group’s business, so as to ensure that no one 
person has unrestricted powers of decision.
The Chairman is responsible for the leadership 
of the Board, ensuring its effectiveness and 
setting its agenda. Once strategic and financial 
objectives have been agreed by the Board, it 
is the Chief Executive Officer’s responsibility to 
ensure they are delivered upon. To facilitate this 
the Chief Executive Officer regularly meets the 
Executive Management Team which additionally 
comprises the other executive Directors and 
senior members of the management team. The 
day to day operations of the Group are managed 
by the Executive Management Team.
Composition of and Appointments  
to the Board
The Code requires that there should be a 
balance of Executive and Non-Executive 
Directors and when appointing new Directors  
to the Board there should be a formal, rigorous 
and transparent procedure. 
The Board comprises the Non-Executive 
Chairman, the Chief Executive Officer, the 
Chief Financial Officer and three Non-Executive 
Directors. Short biographies of the Directors  
are given on pages 12 to 13.
Corporate Governance Report
For the year ended 31 October 2013 Idox plc Annual Report and Accounts 2013 22
Governance
Composition of and Appointments  
to the Board continued 
Martin Brooks served as Chairman to the 
Group having previously served as an executive 
director. The Board acknowledge that this 
does not meet the definition of independence 
as defined by the Combined Code, however, 
all Non-Executives at the year end, with the 
exception of Martin Brooks as explained above, 
are considered to be independent.
The Board is satisfied with the balance 
between Executive and Non-Executive Directors.  
The Board considers that its composition is 
appropriate in view of the size and requirements 
of the Group’s business and the need to maintain 
a practical balance between Executive and  
Non-Executive Directors.
Each member of the Board brings different skills 
and experience to the Board and the Board 
Committees. The Board is satisfied that there is 
sufficient diversity in the Board structure to bring 
a balance of skills, experience, independence 
and knowledge of the Group. 
The Code requires that the Board undertake 
a formal and rigorous annual evaluation of its 
own performance and that of its committees 
and individual Directors. The Board continue to 
annually review the composition of the Board to 
ensure there is adequate diversity to allow for 
the proper functioning of the board and that the 
board works effectively together as a unit. 
When a new appointment to the Board is 
made, consideration is given to the particular 
skills, knowledge and experience that a 
potential new member could add to the 
existing Board composition. A formal process 
is then undertaken, which may involve external 
recruitment agencies, with appropriate 
consideration being given, in regards to Executive 
appointments, to internal and external candidates. 
Before undertaking the appointment of a Non-
Executive Director, the Chairman establishes that 
the prospective Director can give the time and 
commitment necessary to fulfil their duties, in 
terms of availability both to prepare for and attend 
meetings and to discuss matters at other times.
Board Committees
The Board has established two committees 
to deal with specific aspects of the Board’s 
responsibilities: Audit and Remuneration 
Committees. The Report of the Audit Committee 
can be found on page 26. The Audit Committee 
is chaired by Peter Lilley and included Wendy 
Hall, Christopher Wright until 28 February 2013 
and Jeremy Millard from 13 June 2013. 
The Remuneration Committee is chaired by 
Peter Lilley and includes Wendy Hall and Jeremy 
Millard. This Committee has responsibility for 
making recommendations to the Board of 
the remuneration packages of the Executive 
Directors which includes:
• making recommendations to the Board  
on any changes to service contracts;
• approving and overseeing any share 
related incentive schemes within the Group;
• ensuring that remuneration is in line with 
current industry practice; and
• ensuring remuneration is both appropriate  
to the level of responsibility and adequate  
to attract and/or retain Directors and staff  
of the calibre required by the Group.
The Audit Committee met three times in the year 
and the Remuneration Committee met twice.
The Board has also established a Nominations 
Committee which is chaired by Peter Lilley and 
includes Wendy Hall and Jeremy Millard.
Re-election
Under the Code, Directors should offer themselves 
for re-election at regular intervals and, under 
the Company’s Articles of Association, at every 
Annual General Meeting at least one third of the 
Directors who are subject to retirement by rotation 
are required to retire and may be proposed for re-
election. New Directors, who were not appointed at 
the previous AGM, automatically retire at their first 
AGM and if eligible, can seek re-appointment.
Three Directors will retire from office at the 
Company’s forthcoming AGM and stand for 
re-appointment.
Corporate Governance Report continued
For the year ended 31 October 2013 Idox plc Annual Report and Accounts 2013 23
Internal Control
The Board takes responsibility for establishing 
and maintaining reliable systems of control in all 
areas of operation. These systems of control, 
especially of financial control, can only provide 
reasonable, but not absolute, assurance against 
material misstatement or loss. 
The key matters relating to the system of internal 
control are set out below:
• Idox plc has established an operational 
management structure with clearly  
defined responsibilities and regular 
performance reviews;
• the Group operates a comprehensive system 
for reporting financial and non-financial 
information to the Board including preparation 
and review of strategy plans and the 
preparation and review of annual budgets;
•  financial results are monitored against 
budgets, forecasts and other performance 
indicators with action dictated accordingly  
at each meeting;
•  a structured approval process based on 
assessment of risk and value delivered; and
•  sufficient resource is focused to maintain  
and develop internal control procedures  
and information systems, especially in 
financial management.
The Board considers that there have been no 
substantial weaknesses in internal financial 
controls that have resulted in any material losses, 
contingencies or uncertainties which need to be 
disclosed in the accounts.
The Group supports an internal audit function 
that performs annual audits on its management 
systems. This function is supported by a 
management review of the audit findings. 
The Board confirms that there is an ongoing 
process for identifying, evaluating and managing 
the significant risks faced by the Group, and 
that this process has been in place for the year 
under review and up to the date of approval of 
the Annual Report and Accounts. This process is 
regularly reviewed by the Board. 
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the 
Annual Report and the financial statements in 
accordance with applicable law and regulations.
Company law requires the Directors to prepare 
financial statements for each financial year. 
Under that law the Directors have to prepare the 
consolidated financial statements in accordance 
with International Financial Reporting Standards 
as adopted by the European Union (IFRSs). The 
Directors have elected to prepare the company 
financial statements under UK Generally 
Accepted Accounting Practice (“UK GAAP”). 
Under company law the Directors must not 
approve the financial statements unless they are 
satisfied that they give a true and fair view of the 
state of affairs of the Group and parent company 
and of the profit or loss of the Group and parent 
company for that period. In preparing these 
financial statements, the Directors are required to:
• select suitable accounting policies and then 
apply them consistently;
• make judgments and accounting estimates 
that are reasonable and prudent;
• state whether applicable IFRSs and UK 
accounting standards have been followed, 
subject to any material departures disclosed 
and explained in the financial statements; and
• prepare the financial statements on the  
going concern basis unless it is inappropriate 
to presume that the company will continue  
in business. Idox plc Annual Report and Accounts 2013 24
Governance
Statement of Directors’ 
Responsibilities continued 
The Directors are responsible for keeping 
adequate accounting records that are sufficient 
to show and explain the Group’s transactions, 
disclose with reasonable accuracy at any time 
the financial position of the Group and enable 
them to ensure that the financial statements 
comply with the Companies Act 2006. They are 
also responsible for safeguarding the assets of 
the Group and hence for taking reasonable steps 
for the prevention and detection of fraud and 
other irregularities.
The Directors are responsible for ensuring that 
the Directors’ Report and other information 
included in the Annual Report is prepared in 
accordance with United Kingdom company law. 
They are also responsible for ensuring that the 
Annual Report includes information required by 
the AIM Market Rules. 
The maintenance and integrity of the Group’s 
web site is the responsibility of the Directors; 
the work carried out by the auditors does not 
involve consideration of these matters and, 
accordingly, the auditors accept no responsibility 
for any changes that may have occurred to the 
information contained in the accounts since they 
were initially presented on the web site. 
Legislation in the United Kingdom governing 
the preparation and the dissemination of the 
accounts and other information included in 
annual reports may differ from legislation in  
other jurisdictions. 
Information and Development
The Code requires that the Board should be 
supplied in a timely manner with information in a 
form and of a quality appropriate to enable it to 
discharge its duties.
The Chairman is responsible for ensuring that 
all the Directors continually update their skills, 
their knowledge and familiarity with the Group 
in order to fulfil their role on the Board and the 
Board’s Committees. Updates dealing with 
changes in legislation and regulation relevant to 
the Group’s business are provided to the Board 
by external advisors, the Chief Financial Officer 
and Company Secretary.
All Directors have access to the advice and 
services of the Company Secretary, who is 
responsible to the Board for ensuring the Board 
procedures are properly complied with and that 
the discussions and decisions are appropriately 
minuted. Directors may seek independent 
professional advice at the Group’s expense in 
furtherance of their duties as Directors.
Training in matters relevant to their role on the 
Board is available to all Board Directors. New 
Directors are provided with an induction in 
order to introduce them to the operations and 
management of the business.
Shareholder Relations
Idox plc is committed to open communication 
with all its shareholders. The Directors hold 
regular meetings with institutional shareholders 
to discuss and review the Group’s activities 
and objectives. Communication with private 
shareholders is principally through the Annual 
General Meeting, where participation is 
encouraged and where the Board is available to 
answer questions. Idox plc maintains up-to-date 
information on the Investor Relations section of 
its website www.idoxplc.com.
Every shareholder has access to a full annual 
report each year end and an interim report at 
the half year end. Care is taken to ensure that 
any price sensitive information is released to all 
shareholders, institutional and private, at the 
same time in accordance with London Stock 
Exchange requirements. 
Corporate Governance Report continued
For the year ended 31 October 2013 Idox plc Annual Report and Accounts 2013 25
Idox plc strives to give a full, timely and realistic 
assessment of its business in a balanced way, in 
all price-sensitive reports and presentations. 
AIM Rule Compliance Report
Idox plc is quoted on AIM and as a result the 
Group has complied with AIM Rule 31 which 
requires the following:
• sufficient procedures, resources and controls 
to enable its compliance with the AIM Rules;
• see advice from Nominated Advisor 
(“Nomad”) regarding its compliance with the 
Rules whenever appropriate and take that 
advice into account;
• provide the Nomad with any information it 
reasonable requests in order for the Nomad 
to carry out its responsibilities under the 
AIM Rules for Nominated Advisors, including 
any proposed changes to the Board and 
Provision of draft notifications in advance;
• ensure that each of the Directors accepts full 
responsibility, collectively and individually, for 
compliance with the AIM rules; and
• ensure that each Director discloses without 
delay all information which the Group 
needs in order to comply with AIM Rule 17 
(Disclosure of Miscellaneous Information) 
insofar as that information is known to the 
Director or could with reasonable diligence 
be ascertained by the Director. Idox plc Annual Report and Accounts 2013 26
Governance
Membership and Meetings
The Audit Committee is a committee of the 
Board and is comprised of two Non-Executive 
Directors: Peter Lilley and Wendy Hall. 
Christopher Wright was a member until his 
retirement date of 28 February 2013.
The Audit Committee invites the Executive 
Directors, the external auditor and other senior 
managers to attend its meetings as appropriate. 
The Company Secretary is also the Secretary of 
the Audit Committee.
The Audit Committee is considered to have 
sufficient, recent and relevant financial 
experience to discharge its functions.
During the period under review, the Audit 
Committee met three times.
Role, Responsibilities  
and Terms of Reference
The Audit Committee’s role is to assist the Board 
in the effective discharge of its responsibilities for 
financial reporting and internal control.
The Audit Committee’s responsibilities include:
• to review the integrity of the annual 
and interim financial statements of the 
Group ensuring they comply with legal 
requirements, accounting standards and AIM 
rules, and any other formal announcements 
relating to the Group’s financial performance; 
• to review the Group’s internal financial  
control and risk management systems;
• monitor and review the requirement for  
an internal audit function;
• to review the arrangements for staff to 
whistle-blow on financial reporting and  
other matters;
• safeguard the auditor’s objectivity and 
independence when non-audit services  
are provided; and
• oversee the relationship with the external 
auditor, including approval of their 
remuneration, agreeing the scope of the  
audit engagement, assessing their 
independence, monitoring the provision  
of non-audit services, and considering their 
reports on the Group’s financial statements.
The Audit Committee operates within agreed 
terms of reference, which can be found on the 
Company’s website.
Independence of External Auditor
The Committee keeps under review the 
relationship with the external auditor including:
• the independence and objectivity of the 
external auditor, taking into account the 
relevant UK professional and regulatory 
requirements and the relationship with the 
auditor as a whole, including the provision  
of the non-audit services; and
• the consideration of audit fees and any  
fees for non-audit services.
The Audit Committee develops and 
recommends to the Board the Group’s policy 
in relation to the provision of non-audit services 
by the auditor, and ensures that the provision 
of such services does not impair the external 
auditor independence.
Peter Lilley
Chairman of the Audit Committee 
21 January 2014
Report of the Audit Committee
For the year ended 31 October 2013 Idox plc Annual Report and Accounts 2013 27
Financial Statements
Independent auditor’s report to the 
members of Idox plc
We have audited the group financial statements 
of Idox plc for the year ended 31 October 2013 
which comprise the Consolidated Statement of 
Comprehensive Income, Consolidated Balance 
Sheet, Consolidated Statement of Changes 
in Equity, Consolidated Cash Flow Statement 
and the related notes. The financial reporting 
framework that has been applied in their 
preparation is applicable law and International 
Financial Reporting Standards (IFRSs) as 
adopted by the European Union.
This report is made solely to the company’s 
members, as a body, in accordance with 
Chapter 3 of Part 16 of the Companies Act 2006. 
Our audit work has been undertaken so that we 
might state to the company’s members those 
matters we are required to state to them in an 
auditor’s report and for no other purpose. To the 
fullest extent permitted by law, we do not accept 
or assume responsibility to anyone other than 
the company and the company’s members as a 
body, for our audit work, for this report, or for the 
opinions we have formed.
Respective responsibilities of  
directors and auditor
As explained more fully in the Directors’ 
Responsibilities Statement set out on pages 
23 and 24, the directors are responsible for the 
preparation of the group financial statements 
and for being satisfied that they give a true 
and fair view. Our responsibility is to audit 
and express an opinion on the group financial 
statements in accordance with applicable law 
and International Standards on Auditing (UK 
and Ireland). Those standards require us to 
comply with the Auditing Practices Board’s 
(APB’s) Ethical Standards for Auditors.
Scope of the audit of the  
financial statements
A description of the scope of an audit of 
financial statements is provided on the Financial 
Reporting Council’s website at www.frc.org.uk/
apb/scope/private.cfm
Opinion on financial statements
In our opinion the group financial statements:
• give a true and fair view of the state of the 
group’s affairs as at 31 October 2013 and  
of its profit for the year then ended; 
• have been properly prepared in accordance 
with IFRSs as adopted by the European 
Union; and
• have been prepared in accordance with the 
requirements of the Companies Act 2006.
Opinion on other matter prescribed  
by the Companies Act 2006
In our opinion the information given in the 
Strategic Report and Directors’ Report for 
the financial year for which the group financial 
statements are prepared is consistent with the 
group financial statements.
Matters on which we are required  
to report by exception
We have nothing to report in respect of  
the following:
Under the Companies Act 2006 we are 
required to report to you if, in our opinion:
• certain disclosures of directors’ remuneration 
specified by law are not made; or
• we have not received all the information  
and explanations we require for our audit.
Other matter
We have reported separately on the parent 
company financial statements of Idox plc for  
the year ended 31 October 2013.
Steve Maslin
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP 
Statutory Auditor, Chartered Accountants 
London
21 January 2014
Independent Auditor’s Report to the Members of Idox plc
For the year ended 31 October 2013 Idox plc Annual Report and Accounts 2013 28
Financial Statements
Consolidated Statement of Comprehensive Income
For the year ended 31 October 2013
Note
2013
£000
As restated 
2012
£000
Continuing operations
Revenue 2 57,319 55,382
Cost of sales (5,298) (5,335)
Gross profit 52,021 50,047
Administrative expenses (36,967) (33,430)
Earnings before goodwill impairment, amortisation,  
depreciation, restructuring, acquisition costs and  
share option costs 15,054 16,617
Depreciation 3 (722) (589)
Amortisation 3 (5,388) (4,609)
Restructuring costs 4 (525) (406)
Acquisition costs 5 664 (1,109)
Share option costs 24 (499) (707)
Operating profit 3 8,584 9,197
Finance income 6 138 18
Finance costs 6 (1,209) (1,273)
Profit before taxation 7,513 7,942
Analysed as:
Adjusted profit before tax 13,261 14,773
Amortisation of intangibles (5,388) (4,609)
Restructuring costs (525) (406)
Acquisition costs 664 (1,109)
Share option costs (499) (707)
Income tax credit/(expense) 8 851 (201)
Profit for the year from continuing operations 8,364 7,741
Discontinued operations
Net results for the year from discontinued operations 9 (519) (1,036)
Loss on disposal of discontinued operations 9 (322) –
Net result for the year from discontinued operations (841) (1,036)
Total operations
Net result for the year attributable to owners of the parent 7,523 6,705
Other comprehensive income for the year
Items that will be reclassified subsequently to profit or loss:
Exchange gains on retranslation of foreign operations 43 61
Other comprehensive income for the year, net of tax 43 61
Total comprehensive income for the year attributable  
to owners of the parent from continuing operations 7,566 6,766 Idox plc Annual Report and Accounts 2013 29
Note
2013
£000
As restated 
2012
£000
Earnings per share from continuing and discontinued  
operations attributable to owners of the parent  
during the year
Basic earnings per share
From continuing operations 10 2.41p 2.24p
From discontinued operations 10 (0.24p) (0.30p)
From total operations 2.17p 1.94p
Diluted earnings per share
From continuing operations 10 2.30p 2.12p
From discontinued operations 10 (0.23p) (0.28p)
From total operations 2.07p 1.84p
The accompanying accounting policies and notes form an integral part of these financial statements. Idox plc Annual Report and Accounts 2013 30
Financial Statements
Consolidated Balance Sheet
At 31 October 2013
Note
2013 
£000
2012 
£000
ASSETS
Non-current assets
Property, plant and equipment 11 850 817
Intangible assets 12 69,484 71,371
Deferred tax assets 13 2,509 1,417
Other receivables 15 1,723 1,863
Total non-current assets 74,566 75,468
Current assets
Trade and other receivables 15 17,344 15,050
Cash and cash equivalents 16 3,399 3,640
Total current assets 20,743 18,690
Total assets 95,309 94,158
LIABILITIES
Current liabilities
Trade and other payables 17 4,662 5,460
Other liabilities 18 16,790 17,286
Provisions 19 56 76
Current tax 985 1,020
Derivative financial instruments 20 66 136
Borrowings 21 3,732 2,300
Total current liabilities 26,291 26,278
Non-current liabilities
Deferred tax liabilities 13 4,870 6,101
Borrowings 21 19,462 22,879
Total non-current liabilities 24,332 28,980
Total liabilities 50,623 55,258
Net assets 44,686 38,900 Idox plc Annual Report and Accounts 2013 31
Note
2013 
£000
2012 
£000
EQUITY
Called up share capital 23 3,493 3,485
Capital redemption reserve 1,112 1,112
Share premium account 10,355 10,197
Treasury reserve (12) (107)
Share options reserve 1,955 1,825
Merger reserve 1,294 1,294
ESOP trust (142) (95)
Foreign currency retranslation reserve 145 102
Retained earnings 26,486 21,087
Total equity 44,686 38,900
The financial statements were approved by the Board of Directors and authorised for issue on  
21 January 2014 and are signed on its behalf by:
Richard Kellett-Clarke      
Chief Executive Officer 
      
The accompanying accounting policies and notes form an integral part of these financial statements.
Company name: Idox plc   Company number: 03984070  Idox plc Annual Report and Accounts 2013 32
Financial Statements
Consolidated Statement of Changes in Equity
At 31 October 2013
Called up 
share 
capital 
£000
Capital 
redemption 
reserve
 £000
Share 
premium 
account 
£000
Treasury 
reserve 
£000
Share 
options 
reserve 
£000
Merger 
reserve 
£000
ESOP 
trust 
£000
Foreign 
currency 
retranslation 
reserve 
£000
Retained 
earnings 
£000
Total 
£000
Balance at 1 November 2011 3,463 1,112 10,017 (204) 1,366 1,294 (93) 41 17,375 34,371
Issue of share capital 22 – 180 – – – – – – 202
Transfer on exercise of share options – – – 134 (109) – – – (797) (772)
Purchase of treasury shares – – – (37) – – – – – (37)
Share options granted – – – – 568 – – – – 568
ESOP trust – – – – – – (2) – – (2)
Equity dividends paid – – – – – – – – (2,196) (2,196)
Transactions with owners 22 – 180 97 459 – (2) – (2,993) (2,237)
Profit for the period – – – – – – – – 6,705 6,705
Other comprehensive income 
Exchange gains on retranslation of foreign operations – – – – – – – 61 – 61
Total comprehensive income for the period – – – – – – – 61 6,705 6,766
Balance at 31 October 2012 3,485 1,112 10,197 (107) 1,825 1,294 (95) 102 21,087 38,900
Issue of share capital 8 – 158 – – – – – – 166
Transfer on exercise of share options – – – 95 (83) – – – 31 43
Share options granted – – – – 290 – – – 206 496
Disposal of share options – – – – (77) – – – 77 –
ESOP trust – – – – – – (47) – – (47)
Equity dividends paid – – – – – – – – (2,438) (2,438)
Transactions with owners 8 – 158 95 130 – (47) – (2,124) (1,780)
Profit for the period – – – – – – – – 7,523 7,523
Other comprehensive income 
Exchange gains on retranslation of foreign operations – – – – – – – 43 – 43
Total comprehensive income for the period – – – – – – – 43 7,523 7,566
At 31 October 2013 3,493 1,112 10,355 (12) 1,955 1,294 (142) 145 26,486 44,686
The accompanying accounting policies and notes form an integral part of these financial statements. Idox plc Annual Report and Accounts 2013 33
Called up 
share 
capital 
£000
Capital 
redemption 
reserve
 £000
Share 
premium 
account 
£000
Treasury 
reserve 
£000
Share 
options 
reserve 
£000
Merger 
reserve 
£000
ESOP 
trust 
£000
Foreign 
currency 
retranslation 
reserve 
£000
Retained 
earnings 
£000
Total 
£000
Balance at 1 November 2011 3,463 1,112 10,017 (204) 1,366 1,294 (93) 41 17,375 34,371
Issue of share capital 22 – 180 – – – – – – 202
Transfer on exercise of share options – – – 134 (109) – – – (797) (772)
Purchase of treasury shares – – – (37) – – – – – (37)
Share options granted – – – – 568 – – – – 568
ESOP trust – – – – – – (2) – – (2)
Equity dividends paid – – – – – – – – (2,196) (2,196)
Transactions with owners 22 – 180 97 459 – (2) – (2,993) (2,237)
Profit for the period – – – – – – – – 6,705 6,705
Other comprehensive income 
Exchange gains on retranslation of foreign operations – – – – – – – 61 – 61
Total comprehensive income for the period – – – – – – – 61 6,705 6,766
Balance at 31 October 2012 3,485 1,112 10,197 (107) 1,825 1,294 (95) 102 21,087 38,900
Issue of share capital 8 – 158 – – – – – – 166
Transfer on exercise of share options – – – 95 (83) – – – 31 43
Share options granted – – – – 290 – – – 206 496
Disposal of share options – – – – (77) – – – 77 –
ESOP trust – – – – – – (47) – – (47)
Equity dividends paid – – – – – – – – (2,438) (2,438)
Transactions with owners 8 – 158 95 130 – (47) – (2,124) (1,780)
Profit for the period – – – – – – – – 7,523 7,523
Other comprehensive income 
Exchange gains on retranslation of foreign operations – – – – – – – 43 – 43
Total comprehensive income for the period – – – – – – – 43 7,523 7,566
At 31 October 2013 3,493 1,112 10,355 (12) 1,955 1,294 (142) 145 26,486 44,686
The accompanying accounting policies and notes form an integral part of these financial statements. Idox plc Annual Report and Accounts 2013 34
Financial Statements
Consolidated Cash Flow Statement
At 31 October 2013
 
2013 
£000
As restated 
2012 
£000
Cash flows from operating activities
Profit for the period before taxation 7,513 7,942
Adjustments for:
Depreciation 723 589
Amortisation 5,388 4,609
Finance income (33) (18)
Finance costs 973 791
Interest rate swap liability (70) 136
Debt issue costs amortisation 159 109
Share option costs 499 544
Exchange losses 42 60
Movement in receivables (1,675) (2,765)
Movement in payables (1,663) 452
Cash generated by operations 11,856 12,449
Tax on profit paid (1,728) (2,560)
Cash generated from discontinued operations (285) (154)
Net cash from operating activities 9,843 9,735
Cash flows from investing activities
Acquisition of subsidiaries net of cash acquired (1,779) (23,266)
Deferred consideration paid relating to subsidiaries  
acquired in prior period (585) (320)
Purchase of property, plant and equipment (774) (523)
Purchase of intangible assets (1,696) (1,240)
Disposal of discontinued operation 312 –
Finance income 33 18
Net cash used in investing activities (4,489) (25,331)
Cash flows from financing activities
Interest paid (853) (620)
New loans 8,900 27,800
Loan related costs (123) (430)
Loan repayments (11,322) (2,300)
Equity dividends paid (2,438) (2,196)
Sale/purchase of own shares 241 (610)
Net cash flows from financing activities (5,595) 21,644
Net movement on cash and cash equivalents (241) 6,048
Cash and cash equivalents at the beginning of the period 3,640 (2,408)
Cash and cash equivalents at the end of the period 3,399 3,640
The accompanying accounting policies and notes form an integral part of these financial statements.  Idox plc Annual Report and Accounts 2013 35
1 ACCOUNTING POLICIES
General information
Idox plc is a leading supplier of software and services for the management of local government 
and other organisations. The company is a public limited company which is listed on the London 
Alternative Investment Market and is incorporated and domiciled in the UK. The address of its 
registered office is 2nd Floor, Chancery Exchange, 10 Furnival Street, London, EC4A 1AB. The 
registered number of the company is 03984070.
The financial statements are prepared in pound sterling.
Basis of preparation
These financial statements have been prepared in accordance with International Financial Reporting 
Standards (IFRS) as adopted by the European Union (EU) and the Companies Act 2006 applicable to 
companies reporting under IFRS. 
The financial statements have been prepared under the historical cost convention as modified by the 
revaluation of certain financial assets and liabilities, being derivatives at fair value through profit or loss.
As set out on page 16 of the Directors’ Report, the financial statements have been prepared on a 
going concern basis.
International Financial Reporting Standards and Interpretations issued but not yet effective
At the date of authorisation of these financial statements, the following new standards, amendments 
and interpretations to existing standards have been published that are mandatory for forthcoming 
financial periods, but which the Group has not adopted early. These are not expected to have a 
material impact on the Group’s consolidated financial statements:
• IFRS 9 Financial Instruments (effective 1 January 2015)
• IFRS 10 Consolidated Financial Statements (effective 1 January 2014)
• IFRS 11 Joint Arrangements (effective 1 January 2014)
•  IFRS 12 Disclosure of Interests in Other Entities (effective 1 January 2014)
•  IFRS 13 Fair Value Measurement (effective 1 January 2013)
•  IAS 19 (revised June 2011) Employee Benefits (effective 1 January 2013)
•  IAS 27 (revised) Separate Financial Statements (effective 1 January 2014)
•  IAS 28 (revised) Investments in Associates and Joint Ventures (effective 1 January 2014)
•  Amendments to IFRS 7: Disclosures – Offsetting Financial Assets and Financial Liabilities 
(effective 1 January 2013)
• Amendments to IAS 32 – Offsetting Financial Assets and Financial Liabilities (effective  
1 January 2014)
•  Amendments to IFRS 9 and IFRS 7 – Mandatory Effective Date and Transition Disclosures 
(effective 1 January 2015)
• Annual Improvements 2009–2011 Cycle (effective 1 January 2013)
• Transition Guidance – Amendments to IFRS10, IFRS11 and IFRS12 (effective 1 January 2013)
Notes to the Accounts
For the year ended 31 October 2013 Idox plc Annual Report and Accounts 2013 36
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
1 ACCOUNTING POLICIES CONTINUED
Adoption of new and revised standards
There were no additional standards, amendments and interpretations that had a material impact on 
the Group’s financial statements during the year. The following amendment was effective in the year 
but had no material impact on the Group’s financial statements:
• Amendment to IAS 1 – Presentation of financial statements
• Amendment to IAS 12 – Deferred tax: recovery of underlying assets 
Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience  
and other factors, including expectations of future events that are believed to be reasonable  
under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting 
estimates and assumptions will, by definition, seldom equal the related actual results. The Group has 
evaluated the estimates and assumptions that have been made in relation to the carrying amounts 
of assets and liabilities in these financial statements. The estimates and assumptions which have the 
most significant impact on the financial statements which are recognised in the financial statements 
are as follows:
(i) Intangible assets
The Group recognises intangible assets acquired as part of business combinations at fair value at the 
date of acquisition. The determination of these fair values is based upon management’s judgement 
and includes assumptions on the timing and amount of future incremental cash flows generated by 
the assets and selection of an appropriate cost of capital. Furthermore, management must estimate 
the expected useful lives of intangible assets and charge amortisation on those assets accordingly. 
In determining the useful economic life of the intangible software assets, management has given 
consideration to the length of time that its own software is typically used within its market. In addition, 
management reviewed competitor products and the length of time they had also been in use.
Consideration was also given as to the likelihood that a new competitor could enter the market with 
a new product. This was considered unlikely due to the up-front capital investment which would be 
required to develop a new product, the requirement for reference sites to demonstrate the product, 
and the long life cycles which products have in the market. For details on the estimates made in 
relation to intangible assets, see note 12.
(ii) Development costs
The Group reviews half yearly whether the recognition requirements for development costs have 
been met. This is necessary as the economic success of any product development is uncertain and 
may be subject to future technical problems at the time of recognition. Judgements are based on 
the information available at each balance sheet date. In addition, all internal activities related to the 
research and development of new software products are continuously monitored by the Directors. 
See note 12 for further information. Idox plc Annual Report and Accounts 2013 37
(iii) Impairment of goodwill
The Group is required to test, as least annually, whether goodwill has suffered any impairment.  
The recoverable amount is determined based upon value-in-use and net realisable value calculations. 
The value-in-use method requires the estimation of future cash flows and the choice of a suitable 
discount rate in order to calculate the present value of these cash flows. Pre-tax discount rates  
have been applied and are based on WACC calculations. See note 12 for further commentary.
(iv) Revenue recognition
The Group recognises revenue on certain contracts such as service agreements, prior to an invoice 
being raised, where work has been completed and there is a high degree of certainty of the contract 
being completed and the invoice raised and cash received. See paragraph headed ‘Revenue’ below 
for more detail on how the Group accounts for revenue. 
(v) Contingent consideration
The contingent consideration provision is the maximum undiscounted amount which will be paid, 
which represents fair value. Where an acquisition involves a potential payment of contingent 
consideration the estimate of any such payment is based on its fair value. To estimate the fair value 
an assessment is made as to the amount of contingent consideration which is likely to be paid having 
regard to the criteria on which any sum due will be calculated. 
(vi) Deferred tax
The Group has tax losses available to offset future taxable profits. In estimating the amount of 
deferred tax to be recognised as an asset the Group estimates the future profitability of the relevant 
business unit.
Basis of consolidation
The Group accounts consolidate the accounts of the Company and its subsidiary undertakings drawn 
up to 31 October each year. Subsidiaries are those entities over which the Group has the power 
to control the financial and operating policies. Idox plc obtains and exercises control over all of its 
subsidiaries through ownership of 100% of the voting rights.
All inter-company transactions are eliminated on consolidation. 
For business combinations occurring since 1 November 2009, the requirements of IFRS 3R have 
been applied. The consideration transferred by the Group to obtain control of a subsidiary is 
calculated as the sum of the acquisition date fair values of assets transferred, liabilities incurred and 
the equity interests issued by the Group, which includes the fair value of any asset or liability arising 
from a contingent consideration arrangement. Acquisition costs are expensed as incurred.  Idox plc Annual Report and Accounts 2013 38
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
1 ACCOUNTING POLICIES CONTINUED
Revenue
Revenue represents the amounts receivable in respect of goods and services provided during  
the year, stated net of value added tax. Where work has been done, but a billing milestone has 
not been reached, the income has been accrued and included in amounts recoverable within trade 
and other receivables. 
Revenue is measured at the fair value of the right to consideration. The Group derives its revenue 
streams from software solutions, information solutions and recruitment services. 
Continuing operations:
Software licence revenue is recognised when the licence is despatched to the customer. Where 
the licence is bespoke, revenue is recognised when the licence is delivered and the customer has 
accepted the licence as fully functional.
Software consultancy revenue is recognised on a stage of completion basis. Stage of completion is 
determined by time spent by service delivery consultants or by reference to the project milestones 
either included in the contract itself or included within a separate detailed project delivery plan. 
Revenue relating to goods delivered as part of software solutions provided is only recognised once 
the goods have been received by the customer.
Revenue relating to goods delivered for elections is recognised when the goods have been received 
by the customer. Consultancy revenue for elections is recognised on a stage of completion basis. 
The revenues for maintenance and managed service contracts are spread evenly over the life of the 
agreement, which is typically one year. 
Revenue derived from information solutions content is recognised over the life of the subscription, which 
is typically one year. Revenue from projects is recognised over the life of the project in accordance with 
the stage of completion which is determined by reference to the project delivery plan.
Revenue relating to grant applications is recognised on a ‘no win-no fee’ basis. Revenue is only 
recognised when confirmation that the grant application has been successful is received. 
Discontinued operations:
Recruitment revenue from permanent placements was recognised in the month when the placement 
started. Revenue from contract recruitment was recognised as the service was performed.
Contract revenue
The amount of profit attributable to the stage of completion of a long term contract is recognised only 
when the outcome of the contract can be foreseen with reasonable certainty. Management make a 
judgement on the fair value of the work completed to enable revenue on long term contracts to be 
recognised in the correct periods. Stage of completion is determined based on management’s best 
estimate of effort expended and progress against project plans at the year end. Provision is made for 
any losses as they are foreseen. 
The contracts for software solutions often contain multiple elements such as software, consultancy 
and maintenance. Management make appropriate judgements and estimates in relation to the fair 
value of each of these elements in accordance with IAS 18. Idox plc Annual Report and Accounts 2013 39
Segmental reporting
Operating segments are reported in a manner consistent with the internal reporting provided to 
the chief operating decision-maker. The chief operating decision-maker has been identified as the 
steering committee, which comprises the Chief Executive Officer and the Chief Financial Officer.
Goodwill
Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the 
excess of the sum of a) fair value of consideration transferred, b) the recognised amount of any non-
controlling interest in the acquiree and c) acquisition-date fair value of any existing equity interest in 
the acquiree, over the acquisition-date fair values of identifiable net assets. If the fair values of the 
identifiable net assets exceed the sum calculated above, the excess amount (i.e. gain on a bargain 
purchase) is recognised in profit or loss immediately.
Cash-generating units to which goodwill has been allocated are tested for impairment at least 
annually. All other individual assets or cash-generating units are tested for impairment whenever 
events or changes in circumstances indicate that the carrying amount may not be recoverable.
Goodwill is carried at cost less accumulated impairment losses. Unallocated goodwill on acquisitions 
relates mainly to workforce valuation, synergies and economies of scale obtained on combining 
acquisitions with existing operations.
Goodwill written off to reserves prior to the date of transition to IFRS remains in reserves. There is no 
re-instatement of goodwill that was amortised prior to transition to IFRS. Goodwill previously written 
off to reserves is not written back to profit or loss on subsequent disposal.
Other intangible assets
Intangible assets with a finite useful life are amortised to the consolidated statement of comprehensive 
income on a straight-line basis over their estimated useful lives, which are reviewed on an annual 
basis. Amortisation commences when the asset is available for use. The residual values of intangible 
assets are assumed to be zero.
(i) Research and development
Expenditure on research (or the research phase of an internal project) is recognised in profit or loss 
in the period in which it is incurred. Development costs incurred are capitalised when all the following 
conditions are satisfied:
• completion of the intangible asset is technically feasible so that it will be available for use or sale;
• the Group intends to complete the intangible asset and use or sell it;
• the Group has the ability to use or sell the intangible asset;
• the intangible asset will generate probable future economic benefits. Among other things, this 
requires that there is a market for the output from the intangible asset or for the intangible asset 
itself, or, if it is to be used internally, the asset will be used in generating such benefits;
• there are adequate technical, financial and other resources to complete the development and to 
use or sell the intangible asset; and
• the expenditure attributable to the intangible asset during its development can be measured reliably. Idox plc Annual Report and Accounts 2013 40
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
1 ACCOUNTING POLICIES CONTINUED
Other intangible assets continued
(i) Research and development continued
Development costs not meeting the criteria for capitalisation are expensed in profit or loss as incurred. 
The cost of an internally generated intangible asset comprises all directly attributable costs necessary 
to create, produce, and prepare the asset to be capable of operating in the manner intended by 
management. Amortisation commences upon completion of the asset, and is shown separately  
on the statement of comprehensive income.
Careful judgement by the Directors is applied when deciding whether the recognition requirements 
for development costs have been met. This is necessary as the economic success of any product 
development is uncertain and may be subject to future technical problems at the time of recognition. 
Judgements are based on the information available at each balance sheet date. In addition, all 
internal activities related to the research and development of new software products are continuously 
monitored by the Directors.
Amortisation is calculated using the straight line method over a period of 5 years.
(ii) Customer relationships
Customer relationships represent the purchase price of customer lists and contractual relationships 
purchased on the acquisition of CAPS Solutions Limited, Plantech Limited, J4B Software and 
Publishing Limited, Strand Electoral Management Services Limited, Grantfinder Limited, McLaren 
Software Limited, Lalpac Limited, Interactive Dialogues NV, Opt 2 Vote Limited, Currency Connect 
Holding BV, FMx Limited, Artesys International SA and the CTSpace Group. These relationships are 
carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is 
calculated using the straight line method over a period of 20, 10 and 5 years.
(iii) Trade names
Trade names represent the named intangible asset recognised on the acquisition of CAPS Solutions 
Limited, Plantech Limited, J4B Software and Publishing Limited, Strand Electoral Management 
Services Limited, Grantfinder Limited, McLaren Software Limited, Lalpac Limited, Interactive 
Dialogues NV, Opt 2 Vote Limited, Currency Connect Holding BV, FMx Limited, Artesys International 
SA and the CTSpace Group. These trade names are carried at cost less accumulated amortisation 
and accumulated impairment losses. Amortisation is calculated using the straight line method over a 
period of 20, 10 and 5 years.
(iv) Software
Software represents the UNI-form, ACOLAID, Enterprise Engineer, CAFM Explorer, electoral and 
licensing software purchased on the acquisition of CAPS Solutions Limited, Plantech Limited, 
McLaren Software Limited, Strand Electoral Management Services Limited, Lalpac Limited, Interactive 
Dialogues NV, Opt 2 Vote Limited, Currency Connect Holding BV, FMx Limited, Artesys International 
SA and the CTSpace Group. The software is carried at cost less accumulated amortisation and 
accumulated impairment losses. Amortisation is calculated using the straight line method over a 
period of 5 and 10 years. Software also includes software licences purchased which are amortised 
using the straight line method over a period of 3 years. Idox plc Annual Report and Accounts 2013 41
(v) Database
Database represents the grant information database purchased on the acquisition of J4B Software 
& Publishing Limited and Grantfinder Limited. The database is carried at cost less accumulated 
amortisation and accumulated impairment losses. Amortisation is calculated using the straight line 
method over a period of 5 years.
(vi) Order backlog
Order backlog represents the managed service contracts and subscription deferred revenue 
purchased on the acquisition of 11 land and property information solution contracts and Grantfinder 
Limited. Amortisation on the managed service deferred revenue is calculated based on the weighting 
and length of each contract purchased. Subscription deferred revenue is calculated using the straight 
line method over a period of 5 years.
Impairment
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there 
are separately identifiable cash flows (cash-generating units). As a result, some assets are tested 
individually for impairment and some are tested at cash-generating unit level. Goodwill is allocated 
to those cash-generating units that are expected to benefit from synergies of the related business 
combination and represent the lowest level within the Group at which management monitors the 
related cash flows.
Goodwill, other individual assets or cash-generating units that include goodwill, other intangible 
assets with an indefinite useful life, and those intangible assets not yet available for use are tested 
for impairment at least annually. All other individual assets or cash-generating units are tested for 
impairment whenever events or changes in circumstances indicate that the carrying amount may not 
be recoverable.
An impairment loss is recognised for the amount by which the asset’s or cash-generating unit’s 
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of fair value, 
reflecting market conditions less costs to sell, and value in use based on an internal discounted cash 
flow evaluation. Impairment losses recognised for cash-generating units, to which goodwill has been 
allocated, are credited initially to the carrying amount of goodwill. Any remaining impairment loss is 
charged pro rata to the other assets in the cash generating unit. With the exception of goodwill, all 
assets are subsequently reassessed for indications that an impairment loss previously recognised 
may no longer exist.
Property, plant and equipment
Items of property, plant and equipment are stated at cost less accumulated depreciation.
Depreciation is charged to the income statement using the following rates and bases so as to write  
off the cost or valuation of items of property, plant and equipment over their expected useful lives.  
The rates that are generally applicable are:
Computer hardware 50% and 100% straight line 
Fixtures, fittings and equipment 25% straight line 
Library books and journals 33 1/3% straight line 
Motor vehicles 25% straight line
Useful economic lives and residual values are reviewed annually. Idox plc Annual Report and Accounts 2013 42
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
1 ACCOUNTING POLICIES CONTINUED
Employee benefits
Defined contribution pension plans
Contributions paid to private pension plans of certain employees are charged to the income statement 
in the period in which they become payable. Contributions paid to the Group personal pension plans 
of employees are charged to the income statement in the period in which they become payable.
Share-based payment transactions
All share-based payment arrangements granted after 7 November 2002 that had not vested prior to  
1 November 2006 are recognised in the financial statements.
All goods and services received in exchange for the grant of any share-based payment are measured 
at their fair values. Where employees are rewarded using share-based payments, the fair values of 
employees’ services are determined indirectly by reference to the fair value of the instrument granted 
to the employee. This fair value is appraised at the grant date and excludes the impact of non-market 
vesting conditions (for example, profitability and sales growth targets).
All equity-settled share-based payments are ultimately recognised as an expense in the income 
statement with a corresponding credit to the share option reserve.
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the 
vesting period, based on the best available estimate of the number of share options expected to 
vest. Estimates are revised subsequently if there is any indication that the number of share options 
expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is 
recognised in the current period. No adjustment is made to any expense recognised in prior periods  
if share options that have vested are not exercised.
Upon exercise of share options, the proceeds received net of attributable transaction costs are 
credited to reserves.
Reserves
Equity comprises the following:
• “Share premium” represents the excess over nominal value of the fair value of consideration 
received for equity shares, net of expenses of the share issue.
• “Capital redemption reserve” represents when the entire deferred ordinary share capital was 
bought in exchange for one ordinary 1p share. 
• “Merger reserve” which arose as a result of a Group reconstruction that occurred on 17 November 
2000. This represents the issued share capital and share premium account in the Company’s 
subsidiary undertaking, Idox Software Limited.
• “Share options reserve” represents shares to be issued on potential exercise of those share 
options that have been accounted for under “IFRS 2 Share Based Payments”.
• “ESOP trust” represents share capital purchased to satisfy the obligation of the employee share 
scheme. Purchased shares are classified within the ESOP trust reserve and presented as a 
deduction from total equity.
• “Retained earnings” represents retained profits.
• “Treasury reserve” represents shares repurchased by the company to be held for redistribution  
as share options.
• “Foreign currency translation reserve” represents exchange gains and losses on retranslation  
of foreign operations.  Idox plc Annual Report and Accounts 2013 43
Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Current tax is charged to 
profit or loss except where it relates to tax on items recognised in other comprehensive income or 
directly in equity, in which case it is charged to equity or other comprehensive income.
Current tax is the tax currently payable based on taxable profit for the year. 
Deferred income taxes are calculated using the liability method on temporary differences. Deferred 
tax is generally provided on the difference between the carrying amounts of assets and liabilities and 
their tax bases. However, deferred tax is not provided on the initial recognition of goodwill, nor on 
the initial recognition of an asset or liability unless the related transaction is a business combination 
or affects tax or accounting profit. Deferred tax on temporary differences associated with shares in 
subsidiaries is not provided if reversal of these temporary differences can be controlled by the Group 
and it is probable that reversal will not occur in the foreseeable future. In addition, tax losses available 
to be carried forward as well as other income credits to the Group are assessed for recognition as 
deferred tax assets.
Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to 
the extent that it is probable that the underlying deductible temporary differences will be able to be 
offset against future taxable income. Current and deferred tax assets and liabilities are calculated at 
tax rates that are expected to apply to their respective period of realisation, provided they are enacted 
or substantively enacted at the balance sheet date.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in profit or 
loss, except where they relate to items that are charged or credited directly to other comprehensive 
income or equity in which case the related deferred tax is also charged or credited directly to other 
comprehensive income or equity.
Operating leases
Leases where the lessor retains substantially all the risks and rewards of ownership are classified 
as operating leases. All leases held by the Group are operating in nature. Amounts paid under 
operating leases are charged to the statement of comprehensive income on a straight line basis 
over the lease term.
Dividend distributions
Interim dividends in respect of equity shares are recognised in the financial statements in the period  
in which they are paid.
Final dividends in respect of equity shares are recognised in the financial statements in the period  
that the dividends are formally approved.
Foreign currency translation
The functional and presentation currency of Idox plc and its United Kingdom subsidiaries is the  
pound sterling (£). Transactions in foreign currencies are initially recorded at the functional currency  
rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign 
currencies are retranslated at the functional currency rate of exchange ruling at the balance  
sheet date. All differences are taken to profit or loss.
In the consolidated financial statements, the assets and liabilities of non-sterling functional currency 
subsidiaries, are translated into pound sterling at the rate of exchange ruling at the balance sheet 
date. The results of non-sterling functional currency subsidiaries are translated into pound sterling 
using average rates of exchange. Exchange adjustments arising are taken to a separate component  
of equity and reported in other comprehensive income. Idox plc Annual Report and Accounts 2013 44
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
1 ACCOUNTING POLICIES CONTINUED
Capital policy
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a 
going concern in order to provide returns for shareholders and benefits for other stakeholders and to 
maintain a capital structure that optimises the cost of capital. In order to maintain or adjust the capital 
structure, the Group may adjust the amount of dividends paid to shareholders, return capital  
to shareholders or issue new shares. 
Financial instruments
Financial assets and financial liabilities are recognised on the Group’s balance sheet when the Group 
has become a party to the contractual provisions of the instrument.
Financial assets
Financial assets are classified according to the substance of the contractual arrangements entered into.
Trade and other receivables
Trade receivables do not carry any interest and are initially stated at their fair value, as reduced by 
appropriate allowances for estimated irrecoverable amounts. All receivables are considered for 
impairment. Provision against trade receivables is made when there is objective evidence that the 
Group will not be able to collect all amounts due in accordance with the original terms of those 
receivables. The amount of the write-down is determined as the difference between the assets 
carrying value and the present value of estimated future cash flows.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and on deposit and are subject to an insignificant 
risk of changes in value. 
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual 
arrangements entered into. An equity instrument is any contract that evidences a residual interest in 
the assets of the Group after deducting all of its financial liabilities.
Bank borrowings
Interest-bearing bank loans and overdrafts are recorded initially at fair value, net of direct transaction 
costs. Such instruments are subsequently carried at their amortised cost and finance charges, 
including premiums payable on settlement or redemption, are recognised in profit or loss over the 
term of the instrument using an effective rate of interest.
Trade and other payables
Trade and other payables are not interest-bearing, are initially stated at their fair value and 
subsequently at amortised cost.
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct 
issue costs. Idox plc Annual Report and Accounts 2013 45
Derivative financial instruments
The Group’s activities expose the entity primarily to interest rate risk. The Group uses interest rate 
swap contracts to manage these exposures. The Group does not use derivative financial instruments 
for speculative purposes. The use of financial derivatives is governed by the Group’s policies approved 
by the Board of Directors, which provide written principles in the use of financial derivatives. Derivative 
financial instruments are accounted for at fair value through profit or loss. The Group does not apply 
hedge accounting. 
Restatement of comparative figures 
The Group have restated the 2012 comparative figures to show the results of TFPL Limited as a 
discontinued operation. 
Amounts recoverable on contracts are included in trade and other receivables and represent revenue 
recognised in excess of payments on account. Amounts recoverable on contracts of £1,863k have 
been restated for the prior year to disclose this balance as being a non-current asset. This was 
previously disclosed in the notes to the financial statements as a long term debtor however it had 
been disclosed within total current assets on the balance sheet. This has now been restated for 
comparative purposes.
2 SEGMENTAL ANALYSIS
As at 31 October 2013, the Group is primarily organised into two main operating segments, which  
are detailed below. On 1 July 2013 the recruitment segment was sold. As Recruitment was a 
separately identifiable operating segment the results for the period ended 31 October 2013, and 
comparative periods, have been reclassified as a discontinued operation. On 1st September 2013 
following an internal reorganisation, the Information Solutions segment was combined with Public 
Sector Software. The results for the period are included within the Public Sector Software segment 
and the comparative periods have been restated. 
Financial information is reported to the chief operating decision maker, which comprises the Chief 
Executive Officer and the Chief Financial Officer, monthly on a business unit basis with revenue and 
operating profits split by business unit. Each business unit is deemed an operating segment as each 
offers different products and services.
• Public Sector Software – delivering software and information service solutions to local  
government customers and public sector organisations across a broad range of departments 
• Engineering Information Management – delivering engineering document management  
and control solutions to asset intensive industry sectors
Segment revenue comprises sales to external customers and excludes gains arising on the disposal 
of assets and finance income. Segment profit reported to the Board represents the profit earned by 
each segment before the allocation of taxation, Group interest payments and Group acquisition costs. 
The assets and liabilities of the Group are not reviewed by the chief operating decision maker on a 
segment basis.
The Group does not place reliance on any specific customer and has no individual customer that 
generates 10% or more of its total Group revenue. Idox plc Annual Report and Accounts 2013 46
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
2 SEGMENTAL ANALYSIS CONTINUED
The segment revenues by geographic location for the year ended 31 October 2013 are as follows:
Revenues from external customers
Continuing 
operations 
£000
Discontinued 
operations 
£000
Total 
operations 
£000
United Kingdom 38,369 1,226 39,595
USA 8,862 – 8,862
Europe 7,990 76 8,066
Australia 1,470 – 1,470
Rest of World 628 5 633
57,319 1,307 58,626
The segment revenues by geographic location for the year ended 31 October 2012 are as follows:
Revenues from external customers
Continuing 
operations 
£000
Discontinued 
operations 
£000
Total 
operations 
£000
United Kingdom 37,237 2,451 39,688
USA 10,635 – 10,635
Europe 5,676 56 5,732
Australia 1,603 – 1,603
Rest of World 231 14 245
55,382 2,521 57,903
Revenues are attributed to individual countries on the basis of the location of the customer.  Idox plc Annual Report and Accounts 2013 47
The segment results by business unit for the year ended 31 October 2013 are as follows:
Public 
Sector 
Software
£000
EIM
£000
Total 
(continuing 
operations)
£000
Recruitment 
(discontinued 
operations)
£000
Total 
operations
£000
Revenues from external customers 38,077 19,242 57,319 1,307 58,626
Cost of sales (3,431) (1,867) (5,298) (717) (6,015)
Gross profit 34,646 17,375 52,021 590 52,611
Operating costs (24,004) (12,963) (36,967) (643) (37,610)
Profit before interest, tax,  
depreciation, amortisation, impairment, 
share option costs, acquisition costs 
and restructuring costs 10,642 4,412 15,054 (53) 15,001
Depreciation (589) (133) (722) (1) (723)
Amortisation (4,138) (1,250) (5,388) – (5,388)
Impairment on goodwill – – – (457) (457)
Share option costs (415) (84) (499) (12) (511)
Restructuring (335) (190) (525) – (525)
Acquisition costs 841 (89) 752 – 752
Profit before interest and taxation 6,006 2,666 8,672 (523) 8,149
Finance income 132 (64) 68 – 68
Finance costs (86) (29) (115) – (115)
Segment profit (see reconciliation below) 6,052 2,573 8,625 (523) 8,102 Idox plc Annual Report and Accounts 2013 48
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
2 SEGMENTAL ANALYSIS CONTINUED
The segment results by business unit for the year ended 31 October 2012 are as follows:
Public 
Sector 
Software 
£000
EIM 
£000
Total 
(continuing 
operations) 
£000
Recruitment 
(discontinued 
operations) 
£000
Total 
operations 
£000
Revenues from external customers 37,642 17,740 55,382 2,521 57,903
Cost of sales (3,988) (1,347) (5,335) (1,210) (6,545)
Gross profit 33,654 16,393 50,047 1,311 51,358
Operating costs (22,360) (11,070) (33,430) (1,226) (34,656)
Profit before interest, tax,  
depreciation, amortisation, impairment, 
share option costs, acquisition costs  
and restructuring costs 11,294 5,323 16,617 85 16,702
Depreciation (463) (126) (589) (7) (596)
Amortisation (3,645) (964) (4,609) (9) (4,618)
Impairment of goodwill – – – (1,018) (1,018)
Share option costs (605) (102) (707) (24) (731)
Restructuring (365) (41) (406) (59) (465)
Acquisition costs (254) (815) (1,069) – (1,069)
Profit before interest and taxation 5,962 3,275 9,237 (1,032) 8,205
Finance income 3 1 4 – 4
Finance costs (13) (129) (142) (4) (146)
Segment profit (see reconciliation below) 5,952 3,147 9,099 (1,036) 8,063 Idox plc Annual Report and Accounts 2013 49
Reconciliations of reportable profit
2013 
£000
2012 
£000
Total profit for reportable segments 8,102 8,063
Group acquisition costs (88) (40)
Net financial costs (1,024) (1,117)
Discontinued operations loss* 523 1,036
Profit before taxation 7,513 7,942
Group acquisition costs comprise legal fees in relation to aborted acquisitions. Net financial costs 
relate to Group bank loan interest, bank facility fee amortisation and fair value gain on financial 
derivatives which have not been included in reportable segments. 
*Discontinued operations loss excludes Group costs allocated to the segment relating to acquisition costs relating to disposal. 
3 OPERATING PROFIT FOR THE YEAR
Operating profit for the year has been arrived at after charging:
2013
£000
2012
£000
Auditor’s remuneration:
Fees payable to the company auditor for the audit of the  
parent company and consolidated annual accounts 51 44
The audit of the company’s subsidiaries, pursuant to legislation 65 83
Other services pursuant to legislation 30 18
146 145
Tax services – compliance 76 56
Tax services – advisory 3 –
Corporate finance – 214
Operating lease rentals – buildings 868 866
Depreciation – owned 722 589
Amortisation of intangibles 5,388 4,609
Equity-settled share-based payments 499 707
Foreign exchange gains/losses (35) 143
Research & development costs 3,833 3,243 Idox plc Annual Report and Accounts 2013 50
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
4 DIRECTORS AND EMPLOYEES
Staff costs during the year were as follows:
Continuing 
operations 
2013
£000
Discontinued 
operations 
2013
£000
Total 
2013
£000
Wages and salaries 24,398 418 24,816
Social security costs 2,465 47 2,512
Pension costs 1,241 21 1,262
28,104 486 28,590
During the year share based payment charges of £499,000 were incurred in respect of continuing 
operations and £12,000 in respect of discontinued operations.
Staff costs during the prior year were as follows:
Continuing 
operations 
2012
£000
Discontinued 
operations 
2012
£000
Total 
2012
£000
Wages and salaries 22,620 871 23,491
Social security costs 2,599 102 2,701
Pension costs 711 37 748
25,930 1,010 26,940
During the prior year, share based payment charges of £707,000 were incurred in respect of 
continuing operations, and £24,000 in respect of discontinued operations.
During the year the Group incurred restructuring costs in respect of continuing operations of £525,000 
(2012: £406,000). The restructuring costs represent redundancy payments to former staff. In 2013  
there were no restructuring costs incurred in respect of discontinued operations (2012: £58,000). 
The average number of employees of the Group during the year was 558 and was made up as follows:
Continuing 
operations 
2013 
No
Discontinued 
operations 
2013 
No
Total 
2013 
No
Office and administration (including Directors of  
the company and its subsidiary undertakings) 49 2 51
Sales 68 – 68
Development 117 – 117
Operations 172 – 172
Solutions 142 – 142
Recruitment – 8 8
548 10 558 Idox plc Annual Report and Accounts 2013 51
The average number of employees of the Group during the prior year was 467 and was made up  
as follows:
Continuing 
operations 
2012 
No
Discontinued 
operations 
2012 
No
Total 
2012 
No
Office and administration (including Directors of the 
company and its subsidiary undertakings) 38 2 40
Sales 58 – 58
Development 96 – 96
Operations 122 1 123
Solutions 132 – 132
Recruitment – 18 18
446 21 467
Remuneration in respect of Directors was as follows: 
2013 
£000
2012 
£000
Emoluments 1,026 872
Pension contributions 16 16
Share based payment charge 127 423
1,169 1,311
The amounts set out above include remuneration in respect of the highest paid Director as follows:
2013 
£000
2012 
£000
Aggregate emoluments 477 400
Pension contributions – 5
477 405
Details of the remuneration for each Director are included in the remuneration report which can be 
found on pages 18 to 20 but does not form part of the audited accounts. Idox plc Annual Report and Accounts 2013 52
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
5 ACQUISITION COSTS
Following the implementation of IFRS 3 R all acquisition related costs are expensed in the period 
incurred rather than added to the cost of investment. Acquisition costs relating to individual 
acquisitions are disclosed in Note 25. 
Acquisition costs in 2013 include the following contingent considerations which have been released 
during the year in respect of previous year acquisitions (2012: £Nil):
£000
Opt2Vote Limited 800
Lalpac Limited 50
850
6 FINANCE INCOME AND COSTS
2013 
£000
2012 
£000
Interest receivable 6 6
Fair value gain on financial liabilities recognised in profit or loss 70 –
Dividends receivable 15 12
Foreign exchange differences 35 –
Other income 12 –
Finance income from continuing operations 138 18
Bank loans interest payable (900) (791)
Bank charges and loan facility fees (222) (208)
Fair value loss on financial liabilities recognised in profit or loss – (136)
Fair value loss on financial assets recognised in profit or loss (86) –
Foreign exchange differences (1) (138)
Finance costs from continuing operations (1,209) (1,273)
In 2012 finance costs included £5,000 in respect of discontinued operations (2013: £Nil). Idox plc Annual Report and Accounts 2013 53
7 DIVIDENDS
2013 
£000
2012 
£000
Final dividend paid in respect of the year ended 31 October 2012  
and 31 October 2011 1,394 1,245
Pence per ordinary share 0.40p 0.36p
Interim dividend paid in respect of the year ended 31 October 2013  
and 31 October 2012 1,044 951
Pence per ordinary share 0.30p 0.275p
The Directors have proposed the payment of a final dividend of 0.40p per share, which would amount 
to £1,397,000 (2012: 0.40p).
8 INCOME TAX
The tax charge is made up as follows:
Continuing 
operations 
2013 
£000
Continuing 
operations 
2012 
£000
Current tax
UK corporation tax on profits for the period 1,611 1,455
Foreign tax on overseas companies 624 1,108
Over provision in respect of prior periods (652) (70)
Total current tax 1,583 2,493
Deferred tax
Origination and reversal of temporary differences (2,195) (1,712)
Adjustment for rate change (165) (580)
Adjustments in respect of prior periods (74) –
Total deferred tax (2,434) (2,292)
Total tax charge (851) 201 Idox plc Annual Report and Accounts 2013 54
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
8 INCOME TAX CONTINUED
The below current year deferred tax credit on discontinued activities arises on the non-utilisation of 
tax losses in the period up until the sale of TFPL Ltd on 1 July 2013. 
The tax charge is made up as follows: 
Discontinued 
operations 
2013 
£000
Discontinued 
operations 
2012 
£000
Current tax
UK corporation tax on profits for the period – –
Foreign tax on overseas companies – –
Under/(over) provision in respect of prior periods – –
Total current tax – –
Deferred tax
Origination and reversal of temporary differences (4) –
Adjustment for rate change 1 –
Adjustments in respect of prior periods – –
Total deferred tax (3) –
Total tax charge (3) –
Factors affecting the tax charge in the period:
2013 
£000
2012 
£000
Profit before taxation on continuing operations 6,669 6,906
Profit on ordinary activities multiplied by the standard rate  
of corporation tax in the UK of 23% (2012: 24%) 1,534 1,657
Effects of:
Capital allowances in excess of depreciation – 17
Other timing differences – 864
Deferred tax on losses, intangibles and other movements – (1,350)
Share option deduction (36) (182)
Tax losses utilised (48) (689)
Recognition of previously unrecognised deferred tax (1,744) (941)
Non-deductible expenses 424 900
Prior year over-provision (726) (75)
Non-taxable income (360) (3)
Adjustment for tax rate differences in foreign jurisdictions 42 –
R&D enhanced relief (43) (10)
Foreign tax suffered 69 13
Deferred tax on acquisitions/disposal 37 –
(851) 201 Idox plc Annual Report and Accounts 2013 55
Movement on trading losses during 2013 are as follows:
UK 
unrelieved 
trading 
losses
£000
Foreign 
unrelieved 
trading 
losses
£000
Total 
unrelieved 
trading 
losses
£000
Tax 
effect 
£000
Recognised trading losses
As at 1 November 2012 4,089 – 4,089 940
Recognised during the year 2,439 3,286 5,725 1,317
Utilised during the year (3,876) (343) (4,219) (970)
Adjustment for difference between 
standard rate of tax at 23% and 
deferred tax rate at 21% – – – (112)
2,652 2,943 5,595 1,175
Unrecognised trading losses
As at 1 November 2012 – 21 21 3
Recognised during year – (21) (21) (3)
– – – –
The unrelieved trading losses of £2,652,000 in the UK remain available to offset against future taxable 
trading profits. Given the high probability that the Group will continue to benefit from these tax losses 
in the future, the deferred tax asset continues to be recognised. The unrelieved trading losses arising 
overseas of £2,943,000 have been recognised during the year with the anticipation that the Group will 
benefit from these tax losses in future. The foreign losses recognised during the year arise mainly in 
the US, with a small element arising in France. Across the year the total deferred tax asset in respect 
of unrelieved trading losses has increased £235,000 to £1,175,000.
The effective tax rate was (12.75%). The decrease is due to the recognition of historic deferred tax 
assets within the US entities of the EIM business in relation to losses and other timing differences of 
£4,492,000. Other factors in the decrease of the tax rate include the origination of tax losses within 
the EIM business in the UK of £2,439,000, which originated on confirmation of the formalisation of 
a pre-acquisition intercompany creditor, and an increase in the deferred tax asset recognised in 
respect of share options of £508,000. A deferred tax asset of £495,000 is recognised at the year-end 
in relation to share options, based on the expected vesting period and exercise price. These factors 
combined resulted in a credit to the corporation tax charge of £1,733,000. Without these factors, the 
effective rate of tax is 13%.  Idox plc Annual Report and Accounts 2013 56
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
8 INCOME TAX CONTINUED
Factors affecting the effective tax rate (ETR) in the period:
2013
£000
% ETR 
Movement
2012
£000
% ETR
Movement
Profit before taxation on continuing and  
discontinued operations 6,669 6,906
Profit on ordinary activities multiplied by the standard 
rate of corporation tax in the UK of 23% (2012: 24%) 1,534 23.00 1,657 24.00
Effects of:
Share option deduction (36) (0.53) (182) (2.63)
Tax losses utilised in year (48) (0.72) (692) (10.01)
Recognition of historic deferred tax (1,744) (26.15) (1,111) (16.09)
Expenses not deductible for tax purposes 424 6.35 900 13.03
Prior year over-provision (726) (10.88) (75) (1.09)
Non-taxable income (360) (5.40) (3) (0.04)
Other 105 1.58 (293) (4.25)
(851) (12.75) 201 2.92
9 DISCONTINUED OPERATIONS
The Group announced on 1 July 2013 the sale of the recruitment business, TFPL Limited. The 
TFPL business represented an identifiable division of the Group and as such has been disclosed 
as a discontinued operation for the year ended 31 October 2013. A single amount is shown on the 
consolidated statement of comprehensive income representing the post-tax result of the discontinued 
operation for the period until disposal. Additionally the post-tax loss arising from the disposal of 
the operation has been recognised within the discontinued operations section of the consolidated 
statement of comprehensive income.  Idox plc Annual Report and Accounts 2013 57
Discontinued operation financial performance
Period to 
1 July 
2013 
£000
Year to 
31 October 
2012 
£000
Revenue 1,307 2,521 
Costs of sale (717) (1,210)
Depreciation and amortisation (1) (16) 
Impairment (457) (1,018)
Other operating expenses (655) (1,309) 
Operating result (523) (1,032)
Finance costs – (4) 
Result from discontinued operations before taxation (523) (1,036)
Tax expense 4 –
Net operating result from discontinued operations (519) (1,036)
Disposal of discontinued operation £000 £000
Total consideration 300
Payment received to settle net assets 100
Net consideration for shares 400
Less: Assets associated with discontinued operations (101)
Costs associated with disposal
– Staff bonuses (34)
– Professional fees (88)
– Other expenses and provisions (499)
(621)
Loss on disposal before taxation (322)
Taxation –
Loss on disposal after taxation (322)
During the year the TFPL business incurred £420,000 (2012: contributed £154,000) in relation to the 
Group’s net operating cash flows, paid £Nil (2012: £Nil) in respect of investing activities and paid £Nil 
(2012: £Nil) in respect of financing activities.
A reconciliation of the profit on disposal to the cash flow from the disposal is given in the table below:
Receipt from disposal of discontinued operations £000
Loss on disposal after taxation (322)
Assets associated with discontinued operations 101
Non-cash expenses associated with disposal 533
Cash inflow from disposal of discontinued operations 312 Idox plc Annual Report and Accounts 2013 58
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
10 EARNINGS PER SHARE
The earnings per ordinary share is calculated by reference to the earnings attributable to ordinary 
shareholders divided by the weighted average number of shares in issue during each period, as follows:
Continuing operations
2013 
£000
2012 
£000
Profit for the year 8,364 7,741
Basic earnings per share
Weighted average number of shares in issue 347,231,721 346,231,724
Basic earnings per share 2.41p 2.24p
Weighted average number of shares in issue 347,231,721 346,231,724
Add back:
Treasury shares 368,667 432,000
ESOP shares 1,018,343 128,618
Weighted average allotted, called up and fully paid share capital 348,618,731 346,792,342
Diluted earnings per share
Weighted average number of shares in issue used in 
basic earnings per share calculation 347,231,721 346,231,724
Dilutive share options 16,020,147 18,852,529
Weighted average number of shares in issue used in  
dilutive earnings per share calculation 363,251,868 365,084,253
Diluted earnings per share 2.30p 2.12p Idox plc Annual Report and Accounts 2013 59
Discontinued operations
2013 
£000
2012 
£000
Loss for the year (841) (1,036)
Basic earnings per share
Weighted average number of shares in issue 347,231,721 346,231,724
Basic earnings per share (0.24p) (0.30p)
Weighted average number of shares in issue 347,231,721 346,231,724
Add back:
Treasury shares 368,667 432,000
ESOP shares 1,018,343 128,618
Weighted average allotted, called up and fully paid share capital 348,618,731 346,792,342
Diluted earnings per share
Weighted average number of shares in issue used in  
basic earnings per share calculation 347,231,721 346,231,724
Dilutive share options 16,020,147 18,852,529
Weighted average number of shares in issue used in  
dilutive earnings per share calculation 363,251,868 365,084,253
Diluted earnings per share (0.23p) (0.28p) Idox plc Annual Report and Accounts 2013 60
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
10 EARNINGS PER SHARE CONTINUED
Total operations
2013 
£000
2012 
£000
Profit for the year 7,523 6,705
Basic earnings per share
Weighted average number of shares in issue 347,231,721 346,231,724
Basic earnings per share 2.17p 1.94p
Weighted average number of shares in issue 347,231,721 346,231,724
Add back:
Treasury shares 368,667 432,000
ESOP shares 1,018,343 128,618
Weighted average allotted, called up and fully paid share capital 348,618,731 346,792,342
Diluted earnings per share
Weighted average number of shares in issue used in  
basic earnings per share calculation 347,231,721 346,231,724
Dilutive share options 16,020,147 18,852,529
Weighted average number of shares in issue used in  
dilutive earnings per share calculation 363,251,868 365,084,253
Diluted earnings per share 2.07p 1.84p
2013
 £000
2012 
£000
Adjusted earnings per share
Profit for the year 7,523 6,705
Add back:
Amortisation 5,388 4,618
Impairment 457 1,018
Share option costs 511 731
Acquisition costs (664) 1,109
Restructuring costs 525 465
Tax effect (1,477) (1,395)
Adjusted profit for year 12,263 13,251
Weighted average number of shares in issue – basic 347,231,721 346,231,724
Weighted average number of shares in issue – diluted 363,251,868 365,084,253
Adjusted earnings per share 3.53p 3.83p
Adjusted diluted earnings per share 3.38p 3.63p Idox plc Annual Report and Accounts 2013 61
11 PROPERTY, PLANT AND EQUIPMENT
Computer 
hardware
£000
Fixtures, 
fittings and 
equipment
£000
Motor 
vehicles
£000
Library 
books and 
journals
£000
Total
£000
Cost 
At 1 November 2011 864 444 – 155 1,463
Additions 408 36 – 79 523
Additions on acquisition 195 72 23 – 290
Disposals – (107) – – (107)
At 31 October 2012 1,467 445 23 234 2,169
Additions 703 4 – 67 774
Additions on acquisition – 36 – – 36
Disposals (1,314) (308) (12) (87) (1,721)
At 31 October 2013 856 177 11 214 1,258
Depreciation
At 1 November 2011 549 228 – 85 862
Provided in the year 427 100 3 67 597
Eliminated on disposal – (107) – – (107)
At 31 October 2012 976 221 3 152 1,352
Provided in the year 542 105 9 67 723
Eliminated on disposal (1,314) (308) (7) (84) (1,713)
Fair value adjustment 36 5 5 – 46
At 31 October 2013 240 23 10 135 408
Net book amount at 
31 October 2013 616 154 1 79 850
Net book amount at 
31 October 2012 491 224 20 82 817
The Group has pledged the above assets to secure banking facilities granted to the Group.
The depreciation charge for the year includes £1,000 in respect of discontinued operations (2012: £7 ,000). Idox plc Annual Report and Accounts 2013 62
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
12 INTANGIBLE ASSETS 
Goodwill
£000
Customer 
relationships
£000
Trade 
names
£000
Software
£000
Development 
costs
£000
Database
£000
Order 
backlog
£000
Total
£000
Cost 
At 1 November 2011 28,001 13,554 5,005 5,811 2,365 569 4,200 59,505
Additions – – – 379 861 – – 1,240
Additions on acquisition 16,930 4,390 2,455 3,216 165 – – 27,156
At 31 October 2012 44,931 17,944 7,460 9,406 3,391 569 4,200 87,901
Additions – – – 351 1,345 – – 1,696
Additions on acquisition 1,314 21 301 358 8 – – 2,002
Disposals (3,875) – – (45) – – – (3,920)
Fair value adjustment 760 – – – – – – 760
At 31 October 2013 43,130 17,965 7,761 10,070 4,744 569 4,200 88,439
Amortisation and 
impairment losses
At 1 November 2011 2,565 2,495 1,032 2,138 809 258 1,597 10,894
Amortisation for the year – 1,410 680 1,070 549 112 797 4,618
Impairment 1,000 – – – – 18 – 1,018
At 31 October 2012 3,565 3,905 1,712 3,208 1,358 388 2,394 16,530
Amortisation for the year – 1,911 751 1,223 763 112 628 5,388
Impairment 457 – – – – – – 457
Disposals (3,375) – – (45) – – – (3,420)
At 31 October 2013 647 5,816 2,463 4,386 2,121 500 3,022 18,955
Carrying amount at  
31 October 2013 42,483 12,149 5,298 5,684 2,623 69 1,178 69,484
Carrying amount at  
31 October 2012 41,366 14,039 5,748 6,198 2,033 181 1,806 71,371
During the year, goodwill and intangibles were reviewed for impairment in accordance with IAS 36, 
Impairment of assets. Impairment charges of £457,000 (2012: £1,018,000) arose as a result of this 
review. The impairment charge relates to the discontinued operations of TFPL Recruitment.
The amortisation charge for the year is entirely attributable to continuing operations. The amortisation 
charge for 2012 includes £9,000 in relation to discontinued operations. 
The remaining useful lives and carrying value of the above intangible assets is as follows: Idox plc Annual Report and Accounts 2013 63
2013
Remaining 
amortisation 
period 
(years)
2012
Remaining 
amortisation 
period 
(years)
2013
Carrying 
value 
£000
2012
Carrying 
value 
£000
CAPS intangibles:
Customer relationships 13.5 14.5 3,958 4,251
Trade names 13.5 14.5 1,685 1,810
Software 3.5 4.5 1,065 1,370
Plantech intangibles:
Customer relationships 14 15 810 868
Trade names 14 15 364 390
Software 4 5 336 420
J4B intangibles:
Customer relationships (product) 0.5 1.5 12 37
Customer relationships (project) 5.5 6.5 72 85
Trade names 5.5 6.5 113 133
Database 0.5 1.5 41 122
Grantfinder intangibles:
Trade name 6.5 7.5 151 175
Database 1.5 2.5 47 78
Customer contracts and relationships 1.5 2.5 390 650
Order backlog 1.5 2.5 390 650
Strand intangibles:
Trade name 1.75 2.75 124 195
Software 1.75 2.75 155 244
Customer relationships 6.75 7.75 1,567 1,799
LAMP contracts intangibles:
Backlog order book 6 7 789 1,157
McLaren intangibles:
Customer relationships 7 8 722 823
Trade names 2 3 437 642
Software 2 3 328 482
Lalpac intangibles:
Customer relationships 7.5 8.5 1,234 1,399
Trade names 7.5 8.5 123 139
Software 7.5 8.5 246 279 Idox plc Annual Report and Accounts 2013 64
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
2013
Remaining 
amortisation 
period 
(years)
2012
Remaining 
amortisation 
period 
(years)
2013
Carrying 
value 
£000
2012
Carrying 
value 
£000
Interactive Dialogues intangibles
Customer relationships 8 9 282 317
Trade names 8 9 164 185
Software 8 9 329 370
CT Space intangibles
Customer relationships 2 3 375 564
Trade names 8 9 991 1,114
Software 8 9 1,189 1,337
Opt2Vote intangibles
Customer relationships 2.6 3.6 522 720
Trade names 8.4 9.4 444 497
Software 8.4 9.4 592 662
Currency Connect intangibles
Customer relationships 8.5 9.5 1,661 1,857
Trade names 8.5 9.5 220 246
Software 8.5 9.5 236 263
FMx intangibles
Customer relationships 3.8 9.75 529 670
Trade names 8.9 9.75 198 221
Software 8.9 9.75 297 331
Artesys intangibles:
Customer relationships 1.4 – 15 –
Trade names 9.4 – 283 –
Software 9.4 – 337 –
Development costs: 5 5 2,623 2,033
Software costs: 3 3 555 420
12 INTANGIBLE ASSETS CONTINUED Idox plc Annual Report and Accounts 2013 65
Impairment test for goodwill
For this review goodwill was allocated to individual Cash Generating Units (CGU) on the basis of 
the Group’s operations as disclosed in the segmental analysis. As the Board review results on a 
segmental level the Group is monitoring goodwill on the same basis. 
During the year the Group disposed of the non-core recruitment division TFPL Limited. The CGU’s 
were then reorganised into two main divisions; Public Sector Software (PSS) and Engineering 
Information Management (EIM). The former Information Solutions business which largely supplies  
the public sector with content has been absorbed and integrated into the PSS division.
The carrying value of goodwill by each CGU is as follows:
Cash Generating Units (CGU)
2013 
£000
2012 
£000
Public Sector Software 26,487 19,954
Idox Information Solutions – 5,966
TFPL Recruitment – 957
Engineering Information Management 15,996 14,489
42,483 41,366
The recoverable amount of all CGU’s has been determined using value-in-use calculations. These 
calculations use pre-tax cash flow projections based on financial budgets approved by management 
covering the next five financial years. The key assumptions used in the financial budgets relate to 
revenue and EBITDA growth targets. Cash flows beyond this period are extrapolated using the 
estimated growth rates stated below. Growth rates are reviewed in line with historic actuals to  
ensure reasonableness and are based on an increase in market share. 
For value in use calculations, the growth rates and margins used to estimate future performance are 
based on management’s best estimate of short term performance based on an assessment of market 
opportunities and macro-economic conditions. In the year to 31 October 2013 the Weighted Average 
Cost of Capital for each CGU has been used as an appropriate discount rate to apply to cash flows.  
In 2012 the Group Weighted Average Cost of Capital was used as an appropriate discount rate.  Idox plc Annual Report and Accounts 2013 66
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
12 INTANGIBLE ASSETS CONTINUED 
Impairment test for goodwill continued
The assumptions used for the value in use calculations are as follows and are considered appropriate 
for each of the risk profiles of the respective CGU:
Cash Generating Unit (CGU)
Discount rate 
2013
Growth rate 
2013
Discount rate 
2012
Growth rate 
2012
Public Sector Software 10.11% 2% 12.5% 2%
Idox Information Solutions – – 12.5% 2%
TFPL Recruitment – – 13.0% 0%
Engineering Information Management 10.24% 2% 12.5% 2%
Individual Weighted Average Cost of Capital were calculated for each CGU and adjusted for the 
market’s assessment of the risks attaching to each CGU’s cash flows. The Weighted Average  
Cost of Capital is recalculated at each period end. 
An impairment charge of £457,000 (£1,018,000) has been recorded in the year against goodwill 
in relation to the disposal of TFPL Recruitment. This has been disclosed within the discontinued 
operation results. 
Sensitivities have been run on cash flow forecasts for all CGU’s. Management are satisfied that the 
key assumptions of revenue and EBITDA growth rates are achievable and that reasonable possible 
changes to those key assumptions would not lead to the carrying amount of the relevant CGU 
exceeding the recoverable amount. A 0% growth rate would result in the following headroom:
Cash Generating Unit (CGU)
Growth 
rate 0% 
Headroom 
£000
Public Sector Software 64,753
Engineering Information Management 18,348
Sensitivities have also been run on the discount rate applied and management are satisfied that a 
reasonable increase in the discount rate would not lead to the carrying amount of the relevant CGU 
exceeding the recoverable amount.  Idox plc Annual Report and Accounts 2013 67
13 DEFERRED INCOME TAX
Deferred tax assets and liabilities are summarised as follows:
2013 
£000
2012 
£000
Deferred tax assets 2,509 1,417
Deferred tax liabilities (non current) (4,870) (6,101)
(2,361) (4,684)
The movement in the year in the net deferred tax provision was as follows:
2013 
£000
2012 
£000
At 1 November (4,684) (4,565)
Credit to income for the year 2,199 1,982
Adjustment for changes in rate 164 312
Prior year adjustment 95 –
Other movements (12) –
Charged to goodwill for the year (123) (2,413)
At 31 October (2,361) (4,684)
The movement in deferred income tax assets and liabilities during the year is as follows:
Share-
based 
payments 
£000
Other 
temporary 
differences 
£000
Tax 
losses 
carried 
forward 
£000
Accelerated 
tax 
depreciation 
£000
Total 
deferred 
tax asset 
£000
Total 
deferred 
tax 
liability 
£000
At 1 November 2011 109 386 – (5,060) 495 (5,060)
Charge/(credit) to income 182 740 (941) 2,003 922 1,062
Changes in rate – – – 311 – 311
Deferred tax recognised  
on acquisition – – – (2,414) – (2,414)
At 31 October 2012 291 1,126 (941) (5,160) 1,417 (6,101)
Reallocation of b/f (209) (1,117) 1,882 5,545 – –
At 31 October 2012 – restated 82 9 941 385 1,417 (6,101)
Charge to income 517 442 311 82 1,352 929
Changes in rate (104) (39) (111) (40) (294) 458
Deferred tax recognised  
on acquisition – – 34 – 34 (156)
At 31 October 2013 495 412 1,175 427 2,509 (4,870) Idox plc Annual Report and Accounts 2013 68
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
14 FINANCIAL ASSETS AND LIABILITIES
Categories of financial assets and liabilities
The disclosures detailed below are as required by IFRS 7 Financial Instruments: Disclosures.  
The carrying amounts presented on the consolidated balance sheet relate to the following 
categories of assets and liabilities:
Financial assets Note
2013
£000
2012
£000
Non-current:
Financial assets 1,723 1,863
Current:
Financial assets 15 15,837 13,596
Cash and cash equivalents 16 3,399 3,640
20,959 19,099
Financial liabilities Note
2013 
£000
2012 
£000
Financial liabilities measured at amortised cost:
Non-current:
Borrowings 21 19,462 22,879
19,462 22,879
Current:
Borrowings 21 3,732 2,300
Derivative financial instruments at  
fair value through profit or loss 20 66 136
Trade and other payables 17 4,662 5,460
Other liabilities 18 1,499 914
Other liabilities at fair value through profit or loss* 18 – 1,302
9,959 10,112
* Hierarchy 3 being inputs for the asset or liability which are not based on observable market data.  Idox plc Annual Report and Accounts 2013 69
15 TRADE AND OTHER RECEIVABLES
2013 
£000
2012 
£000
Trade receivables, gross 10,269 11,802
Allowance for credit losses (728) (616)
Trade receivables, net 9,541 11,186
Amounts recoverable on contracts 5,919 2,182
Other receivables 377 228
Financial assets 15,837 13,596
Prepayments and accrued income 1,507 1,454
Non-financial assets 1,507 1,454
Trade and other receivables due within one year 17,344 15,050
2013 
£000
2012
 £000
Amounts recoverable on contracts 1,723 1,863
Trade and other receivables due after one year 1,723 1,863
Amounts recoverable on contracts represent work completed and delivered to the customer,  
but due to the contractual payment terms have not yet been invoiced. 
All of the closing Group trade receivables are in UK sterling with the exception of:
2013 2012
Euros €3,275,000 €3,217,000
Australian dollars AUD101,000 AUD$203,000
Emirati dirham AED79,000 AED80,000
US dollars $3,382,000 $3,743,000
Canadian dollars $1,000 $1,000 Idox plc Annual Report and Accounts 2013 70
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
15 TRADE AND OTHER RECEIVABLES CONTINUED
Credit quality of financial assets
The maximum exposure for the Group to credit risk for trade receivables at the reporting date by  
type of customer was:
2013 
£000
2012 
£000
Local authorities and other public bodies 4,430 5,241
Private companies 5,839 6,561
10,269 11,802
The ageing of trade receivables at the reporting date for the Group was:
Gross
2013
£000
Impairment
2013
£000
Gross
2012
£000
Impairment
2012
£000
Not past due 5,699 – 7,389 –
Past due 0 to 30 days 1,172 – 1,569 –
Past due 31 to 60 days 306 – 578 –
More than 61 days 3,092 728 2,266 616
10,269 728 11,802 616
Movements in the provision for impairment of receivables for the Group were as follows:
2013
£000
2012
£000
At 1 November 2012 616 231
Charge for the year 114 234
Relating to acquisitions 98 514
Utilised (100) (363)
At 31 October 2013 728 616
The provision allowance in respect of trade receivables is used to record impairment losses unless 
the Group is satisfied that no recovery of the amount owing is possible. At that point the amounts 
are considered irrecoverable and are written off against the trade receivable directly. Where trade 
receivables are past due an assessment is made of individual customers and the outstanding 
balance. No provision is required in respect of amounts owed by Group undertakings.
The credit quality of the holders of the Cash at bank is AA and AAA rated.  Idox plc Annual Report and Accounts 2013 71
16 CASH AND CASH EQUIVALENTS
2013
£000
2012
£000
Cash at bank and in hand 3,399 3,640
Cash and cash equivalents per cash flow statements 3,399 3,640
17 TRADE AND OTHER PAYABLES
2013
£000
2012
£000
Trade payables 2,527 2,563
Accruals 2,135 2,897
4,662 5,460
The carrying values of trade and other payables are considered to be a reasonable approximation of 
fair value. Accruals represent liabilities which have been recognised at the balance sheet date. The 
majority of this will be paid during the next six months.
18 OTHER LIABILITIES
2013
£000
2012
£000
Social security and other taxes 1,339 1,532
Other payables 1,499 2,216
Deferred income 13,952 13,538
16,790 17,286
Deferred income represents software revenue where billing milestones have been reached but  
the appropriate proportion of work has not been completed and maintenance, managed service 
and subscription revenues which are spread over the period, typically one year, for which the 
service is supplied. Idox plc Annual Report and Accounts 2013 72
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
19 PROVISIONS
2013
£000
2012
£000
At 1 November 2012 76 117
Provision made during the year 4 4
Provision utilised during the year (24) (45)
At 31 October 2013 56 76
The opening and closing provisions relate to estimated dilapidation costs expected to arise on exit of 
leased properties.
20 DERIVATIVE FINANCIAL INSTRUMENTS
The carrying amounts for the Group’s derivative financial instruments may be further analysed  
as follows:
2013
£000
2012
£000
Fair value:
Interest rate swap – Fair value hierarchy level 2 66 136
Derivative financial liabilities 66 136
The fair value of the contract has been estimated using relevant market interest rates.
In the current year the Group has used interest rates swaps to manage its exposure to interest rate 
movements on its bank borrowings. Contracts with notional values of £12m fix interest payments at  
an average rate of 1.33% for periods up until 2015. 
The fair value of the interest rate swap liability at 31 October 2013 is estimated at £66,000 
(2012: £136,000).  Idox plc Annual Report and Accounts 2013 73
21 BORROWINGS
All borrowings are held at amortised cost and after set-off for unamortised loan facility fees are 
summarised as follows:
2013
£000
2012
£000
Current
Bank borrowings 3,732 2,300
Non-current
Bank borrowings 19,462 22,879
Total borrowings 23,194 25,179
At the balance sheet date the Group had three loan facilities in place with Bank of Scotland Plc 
consisting of one term loan and two revolving credit facilities. 
At the balance sheet date, the amortised cost of the term loan was £7,317,000 and during the period 
the loan was held the average interest rate paid was 3.14%.
The Group has a revolving credit facility to fund working capital requirements. At the balance sheet 
date, the amortised cost of this facility was £1,964,000 and during the period the facility was held the 
average interest rate paid was 3.13%.
The Group has a revolving credit facility of £15m which was made available in order to finance 
business acquisitions. In November 2012, £1.8m of this facility was drawn down in order to fund the 
acquisition of FMx Limited. In April 2013, £2.1m of this facility was drawn down in order to fund the 
acquisition of Artesys International. The total amortised cost of the acquisition revolving credit facility 
at the year end was £13,795,000 and the average interest rate paid during the period the facility was 
held was 3.15%. 
As security for the above loans, the Bank of Scotland Plc holds a bond and floating charge over the 
assets of the Group, a composite guarantee supported by each Group company and a share pledge 
in respect of the entire issued share capital of each subsidiary company.
The Group also has two term loans in place with Oseo, France. At the balance sheet date the total 
outstanding amount was £118,000 and the average interest rate paid during the period the facility  
was held was 5.58%. 
The Directors’ estimate that the fair value of the Group’s borrowing is not significantly different to  
the carrying value.  Idox plc Annual Report and Accounts 2013 74
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
22 RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s principal financial instruments comprise cash and cash equivalents, short term deposits, 
bank borrowings and interest rate swaps. The main purpose of these financial instruments is to 
finance the Group’s operations. The Group has other financial instruments which mainly comprise 
trade receivables and trade payables which arise directly from its operations.
Risk management is carried out by the finance department under policies approved by the Board of 
Directors. The Group finance department identifies, evaluates and manages financial risks. The Board 
provides guidance on overall risk management including foreign exchange risk, interest rate risk, 
credit risk, and investment of excess liquidity.
The impact of the risks required to be discussed under IFRS 7 are detailed below:
Market risk
(i) Foreign exchange risk
Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities 
are denominated in a currency that is not the functional currency of the operations. The Group has 
minimal exposure to foreign exchange risk as a result of natural hedges arising between sales and 
cost transactions.
(ii) Cash flow and fair value interest rate risk
The Group is exposed to interest rate risk in respect of cash balances held with banks and other 
highly rated counterparties.
The Group’s main interest rate risk arises from long-term borrowings. Borrowings issued at variable 
rates expose the Group to cash flow interest rate risk. Borrowings issued at fixed rates expose the 
Group to fair value interest rate risk. During 2013 and 2012, all the Group’s borrowings at variable  
rate were denominated in UK Sterling. To protect cash flows against movements in interest rates 
the Group entered into an interest LIBOR swap agreement.
Credit risk
The Group’s maximum exposure to credit risk is limited to the carrying amount of financial assets 
recognised at the reporting date, as summarised below:
Classes of financial assets – carrying amounts
2013 
£000
2012 
£000
Cash and cash equivalents 3,399 3,640
Trade receivables 9,541 11,186
Amounts recoverable on contracts 7,642 4,045
Other receivables 377 228
Financial assets at fair value 20,959 19,099 Idox plc Annual Report and Accounts 2013 75
Credit risk is managed on a Group basis. Credit risks arise from cash and cash equivalents and 
deposits with banks and financial institutions, as well as credit exposures to customers, including 
outstanding receivables and committed transactions. 
The Group’s credit risk is primarily attributable to its trade receivables. It is the policy of the Group to 
present the amounts in the balance sheet net of allowances for doubtful receivables, estimated by the 
Group’s management based on prior experience and the current economic environment. The Group 
reviews the reliability of its customers on a regular basis, such a review takes into account the nature 
of the Group’s trading history with the customer.
The credit risk on liquid funds is limited because the majority of funds are held with two UK banks with 
high credit-ratings assigned by international credit-rating agencies. Management does not expect any 
losses from non-performance of these counterparties.
None of the Group’s financial assets are secured by collateral or other credit enhancements.
Liquidity risk
The Group closely monitors its access to bank and other credit facilities in comparison to its 
outstanding commitments on a regular basis to ensure that it has sufficient funds to meet obligations 
of the Group as they fall due.
The Board receives regular debt management forecasts which estimate the cash inflows and 
outflows over the next twelve months, so that management can ensure that sufficient financing is in 
place as it is required. Surplus cash within the Group is put on deposit in accordance with limits and 
counterparties agreed by the Board, the objective being to maximise return on funds whilst ensuring 
that the short-term cashflow requirements of the Group are met.
Detailed analysis of the debt facilities taken out and available to the Group are disclosed in note 21.  Idox plc Annual Report and Accounts 2013 76
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
22 RISK MANAGEMENT OBJECTIVES AND POLICIES CONTINUED
Liquidity risk continued
As at 31 October 2013, the Group’s financial liabilities have contractual maturities (including interest 
payments where applicable) as summarised below:
Current Non-current
Within  
6 months
£000
6–12  
months
£000
1–5  
years
£000
Later than  
5 years
£000
Bank borrowings 362 4,050 20,457 –
Trade and other payables 4,662 – – –
This compares to the maturity of the Group’s financial liabilities in the previous reporting period as follows:
Current Non-current
Within  
6 months
£000
6–12  
months
£000
1–5  
years
£000
Later than  
5 years
£000
Bank borrowings 388 2,695 24,170 –
Trade and other payables 5,460 – – –
The above amounts reflect the contractual undiscounted cashflows, which may differ from the 
carrying values of the liabilities at the reporting date.
Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a 
going concern in order to provide returns for shareholders and benefits for other stakeholders and to 
maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the 
capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital  
to shareholders, issue new shares or sell assets to reduce debts.
Capital for the reporting periods under review is summarised as follows:
2013 
£000
2012
 £000
Total equity 44,686 38,900
Less unrestricted cash and cash equivalents (note 16) (3,399) (3,640)
41,287 35,260
Total equity 44,686 38,900
Borrowings (note 21) 23,194 25,179
67,880 64,079
Capital-to-overall financing ratio 0.61 0.55 Idox plc Annual Report and Accounts 2013 77
23 SHARE CAPITAL
2013
£000
2012
£000
Authorised:
650,000,000 ordinary shares of 1p each (2012: 650,000,000) 6,500 6,500
Allotted, called up and fully paid:
As at 1 November 3,485 3,463
Issued and allotted during the year 8 22
349,313,142 ordinary shares of 1p each (2012: 348,479,812) 3,493 3,485
Movement in issued share capital in the year
During the year to 31 October 2013, three employees exercised share options. To satisfy the exercise of 
one tranche of these options, the company issued and allotted 833,330 new ordinary shares of 1p each.
The company has one class of ordinary shares which carry no right to fixed income.
At 31 October 2013, there were 2,153,622 (2012: 1,390,328) shares in issue under ESOP.  
During the year the average issue share price was 44p (2012: 34p).
At 31 October 2013 there were 52,000 (2012: 452,000) shares held in treasury. Idox plc Annual Report and Accounts 2013 78
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
24 SHARE OPTIONS 
The company has an unapproved share option scheme for all employees (including Directors).  
All share options are exercisable at a price equal to the average market price of the company’s  
shares on the date of grant. The vesting period is quarterly from the date of grant. Per the  
contractual agreements, the options are settled in equity once exercised.
An Employee Share Investment Trust is in place to allow employees a tax efficient way of investing in 
the Company. The Company purchases matching shares which become the property of the employee 
after a three year vesting period. 
Details of all share options over 1p Ordinary shares, falling within the measurement and recognition 
criteria of IFRS 2 “Share-based Payment”, including their contractual life and exercise prices are  
as follows:
At start of year Granted Exercised Lapsed
At end  
of year
Exercise 
price
Exercise 
date from
Exercise 
date to
1,166,000 – (300,000) – 866,000 7.50p May 2007 May 2017
452,000 – – – 452,000 8.125p Jun 2007 Jun 2017
275,000 – – – 275,000 15.00p Dec 2007 Dec 2017
1,192,308 – – – 1,192,308 13.00p Aug 2008 Aug 2018
1,033,334 – – – 1,033,334 15.00p Aug 2008 Aug 2018
8,105,366 – – – 8,105,366 10.25p Mar 2010 Mar 2020
12,300,000 – (933,330) (166,670) 11,200,000 20.00p Mar 2011 Mar 2021
1,099,998 – – – 1,099,998 18.00p Mar 2011 Mar 2021
850,000 – – – 850,000 35.00p Apr 2012 Apr 2022
750,000 – – – 750,000 44.00p Sep 2012 Sep 2022
– 450,000 – – 450,000 35.75p Jul 2013 Jul 2023
27,224,006 450,000 (1,233,330) (166,670) 26,274,006 Idox plc Annual Report and Accounts 2013 79
The following table sets out the number of share options and associated weighted average exercise 
price (WAEP) outstanding during the year:
2013 2012
No
 WAEP
Pence No
 WAEP
Pence
Outstanding at the beginning of the year 27,224,006 16.87 29,002,008 14.86
Granted during the year 450,000 35.75 1,600,000 39.22
Exercised during the year (1,233,330) 16.96 (3,078,002) 9.36
Lapsed during the year (166,670) 20.00 (300,000) 18.67
Outstanding at the end of the year 26,274,006 17.17 27,224,006 16.87
Exercisable at the end of the year 24,044,840 15.98 19,640,226 12.12
The share options outstanding at the end of the year have a weighted average remaining contractual 
life of 7 years. The share options exercised during the year had a weighted average exercise price of 
16.96p and a weighted average market price of 37p.
The fair values were calculated using the Black-Schöles Pricing Model and the following information:
Date of 
issue
Number 
granted
No.
Weighted 
average 
share 
price 
Pence
Weighted 
average 
exercise 
price 
Pence
Expected 
volatility 
%
Expected 
life 
Years
Risk free  
rate 
%
Expected 
dividend 
yield 
%
Weighted 
average 
fair value 
at grant 
date 
 £
Jul 13 450,000 36.5 35.75 35 10 4.65 0.6 0.19
Expected volatility was determined by calculating the historical volatility of the company’s share 
price over the previous 3 years. The expected life used in the model is adjusted, based on the 
management’s best estimate, for the effects of non-transferability, exercise restrictions and 
behavioural considerations.
The Group recognised a total charge of £511,000 (2012: £731,000) related to equity-settled share-
based payment transactions during the year. A charge of £495,000 (2012: £568,000) related to share 
options granted and £16,000 (2012: £163,000) related to share options exercised. In 2013, a charge of 
£12,000 (2012: £24,000) relating to equity-settled share-based payment transactions were in respect 
of discontinued operations. These charges all related to share options granted.  Idox plc Annual Report and Accounts 2013 80
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
25 ACQUISITIONS
Artesys International 
On 9 April 2013 the Group acquired the entire share capital of Artesys International for a total 
consideration of €2.4m (£2.1m) in cash. Artesys International provides engineering document 
control solutions and applications supporting the efficient and safe operation of processing plants. 
Opidis, an intelligent P&ID and 3D Plant model navigation tool is used by over 8,000 engineering 
operations and maintenance professionals to locate validated plant documents and data. The 
acquisition of Artesys International adds extended geographic coverage in Europe, Africa and the 
Middle East and a complementary portfolio of products, customers, professional services and 
industry partners to the Group. 
Goodwill arising on the acquisition of Artesys has been capitalised and consists largely of the workforce 
value, synergies and economies of scale expected from combining the operations of Artesys with Idox. 
None of the goodwill recognised is expected to be deductible for income tax purposes. The purchase  
of Artesys has been accounted for using the acquisition method of accounting.
Book  
value  
£000
Provisional 
fair value 
adjustments 
£000
Fair  
value  
£000
Intangible assets 985 (298) 687
Property, plant and equipment 40 – 40
Trade receivables 1,008 – 1,008
Corporation tax 18 – 18
Other receivables 246 – 246
Cash at bank 285 – 285
TOTAL ASSETS 2,582 (298) 2,284
Trade payables (149) – (149)
Provisions for liabilities and charges (89) – (89)
Bank loans (342) – (342)
Other creditors (172) – (172)
Deferred income (274) – (274)
Social security and other taxes (352) – (352)
Deferred tax liability – (156) (156)
TOTAL LIABILITIES (1,378) (156) (1,534)
NET ASSETS 750
Purchased goodwill capitalised 1,314
Total consideration 2,064
Satisfied by:
Cash to vendor 2,064
Earn out consideration –
Total consideration 2,064 Idox plc Annual Report and Accounts 2013 81
The fair values stated above are provisional. The fair value adjustment for the intangible assets relates 
to customer relationships, trade names and software. A related deferred tax liability has also been 
recorded as a fair value adjustment.
The fair value of trade debtors is equal to the gross contractual amounts receivable. All debts have 
been reviewed and are considered recoverable.
The revenue included in the consolidated statement of comprehensive income since 9 April 2013, 
contributed by Artesys was £892,000. Artesys also made a loss of £311,000 for the same period. If 
Artesys had been included from 1 November 2012, it would have contributed revenue of £1,894,000 
and a loss after tax of £437,000. 
Acquisition costs of £64,000 have been written off in the consolidated statement of  
comprehensive income.
Innovation Connect (formerly trading as Currency Connect)
There have been additional fair value adjustments in respect of the acquisition of Innovation 
Connect on 3 May 2012. Since 31 October 2012, management have aligned the company’s revenue 
recognition policy with those of the Group. This change has meant that accrued income is now only 
recognised when performance obligations have been met and the right to receive the revenue can be 
measured reliably dependent upon the nature of the individual grant applications. This has resulted in 
an additional fair value adjustment which has reduced accrued income by £446,000 and increased 
goodwill by a corresponding amount. 
There was a fair value adjustment of £46,000 to tangible fixed assets to align the depreciation policy of 
the company to the Group policy.
A final fair value adjustment of £58,000 was made to the bad debt provision to align the provision  
with the Group.
There will be no further fair value adjustments and all opening balances for Innovation Connect are 
now final.
Opt2Vote 
During the year a fair value adjustment of £13,000 was made in respect of the acquisition of Opt2Vote 
Limited on 27 March 2012. The adjustment was made to remove an other receivable balance which 
was deemed to be non-recoverable. 
There will be no further fair value adjustments and all opening balances for Opt2Vote are now final.
FMx
There have been two fair value adjustments during the year in respect of the acquisition of FMx 
Limited on 18 October 2012. An adjustment of £182,000 was made to align the deferred income 
policy with the Group policy. A further adjustment of £15,000 was made in respect of taxation  
timing differences. 
There will be no further fair value adjustments and all opening balances for FMx are now final. 
No additional fair value adjustments have been made in the year in respect of prior year acquisitions. Idox plc Annual Report and Accounts 2013 82
Financial Statements
Notes to the Accounts continued
For the year ended 31 October 2013
25 ACQUISITIONS CONTINUED
Acquisition cash flows
Acquisition cash flows in the year are as follows:
Net cash 
outflow 
£000
Subsidiaries acquired during the year:
Artesys International 1,779
1,779
£000
Deferred consideration paid on previous year acquisitions
Grantfinder Limited 13
Interactive Dialogues BV 162
Innovation Connect 350
525
The following contingent considerations were released in the year:
£000
Opt2Vote Limited 800
Lalpac Limited 50
850
No additional fair value adjustments have been made in the year in respect of prior year acquisitions. Idox plc Annual Report and Accounts 2013 83
26 OPERATING LEASE COMMITMENTS
The future aggregate minimum lease payments under non-cancellable operating leases are as follows:
2013
£000
2012
£000
Amounts due:
Within one year 747 572
Between one and five years 1,561 1,416
After five years 25 14
2,333 2,002
Operating lease payments represent rentals payable by the Group for office premises and motor 
vehicle leasing charges.
27 CAPITAL COMMITMENTS
The Group had no capital commitments at 31 October 2013 or 31 October 2012. 
28 CONTINGENT LIABILITIES 
There were no material Group contingent liabilities at 31 October 2013 or 31 October 2012.
29 POST BALANCE SHEET EVENTS
On 1 November 2013 the Group issued 816,914 ordinary shares of 1p each in order to satisfy an 
exercise of an employee share option. 
30 RELATED PARTY TRANSACTIONS
Compensation paid to key management (which comprises the executive management team and the 
Board) of the Group:
2013
£000
2012
£000
Salaries and other short term employee benefits 2,114 1,974
Post-employment benefits 43 32
Share-based payments 198 731
2,355 2,737
In the year ended 31 October 2013 Martin Brooks, Chairman of Idox plc was entitled to remuneration 
of £6,750 (2012: £6,750) as chairman of Cornwall Development Company, which he elected not to 
take. Cornwall Development Company Ltd is a company limited by guarantee and wholly owned 
by Cornwall Council. Cornwall Council is a customer of Idox Software Limited and Idox Information 
Solutions Limited, both of which are wholly owned subsidiaries of Idox plc. Idox plc Annual Report and Accounts 2013 84
Financial Statements
We have audited the parent company financial 
statements of Idox plc for the year ended 
31 October 2013 which comprise the parent 
company balance sheet, and the related  
notes. The financial reporting framework  
that has been applied in their preparation  
is applicable law and United Kingdom 
Accounting Standards (United Kingdom 
Generally Accepted Accounting Practice).
This report is made solely to the company’s 
members, as a body, in accordance with 
Chapter 3 of Part 16 of the Companies Act 
2006. Our audit work has been undertaken so 
that we might state to the company’s members 
those matters we are required to state to them 
in an auditor’s report and for no other purpose. 
To the fullest extent permitted by law, we do not 
accept or assume responsibility to anyone other 
than the company and the company’s members 
as a body, for our audit work, for this report, or 
for the opinions we have formed.
Respective responsibilities of  
directors and auditor
As explained more fully in the Directors’ 
Responsibilities Statement set out on pages 
23 and 24, the directors are responsible for the 
preparation of the parent company financial 
statements and for being satisfied that they 
give a true and fair view. Our responsibility is 
to audit and express an opinion on the parent 
company financial statements in accordance 
with applicable law and International Standards 
on Auditing (UK and Ireland). Those standards 
require us to comply with the Auditing Practices 
Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the  
financial statements
A description of the scope of an audit of  
financial statements is provided on the  
Financial Reporting Council’s website at 
www.frc.org.uk/apb/scope/private.cfm
Opinion on financial statements
In our opinion the parent company 
financial statements:
• give a true and fair view of the state of the 
company’s affairs as at 31 October 2013  
and of its loss for the year then ended; 
• have been properly prepared in accordance 
with United Kingdom Generally Accepted 
Accounting Practice; and
• have been prepared in accordance with the 
requirements of the Companies Act 2006.
Opinion on other matter prescribed  
by the Companies Act 2006
In our opinion the information given in the 
Strategic Report and Directors’ Report for the 
financial year for which the financial statements 
are prepared is consistent with the parent 
company financial statements.
Matters on which we are required  
to report by exception
We have nothing to report in respect of the 
following matters where the Companies Act 2006 
requires us to report to you if, in our opinion:
• adequate accounting records have not  
been kept by the parent company, or  
returns adequate for our audit have not been 
received from branches not visited by us; or
• the parent company financial statements 
are not in agreement with the accounting 
records and returns; or
• certain disclosures of directors’ remuneration 
specified by law are not made; or
• we have not received all the information  
and explanations we require for our audit.
Other matter
We have reported separately on the group 
financial statements of Idox plc for the year 
ended 31 October 2013. 
Steve Maslin
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP 
Statutory Auditor, Chartered Accountants 
London
21 January 2014
Independent Auditor’s Report to the Members of Idox plc
For the year ended 31 October 2013 Idox plc Annual Report and Accounts 2013 85
Company Balance Sheet
At 31 October 2013
Note
2013
£000
2012
£000
Fixed assets
Investments 5 72,339 71,644
Current assets
Debtors: falling due within one year 6 197 133
Debtors: falling due after one year 6 1,879 2,116
Creditors: amounts falling due within one year 7 (31,989) (24,146)
Net current liabilities (29,913) (21,897)
Total assets less current liabilities 42,426 49,747
Creditors: amounts falling due after more than one year 8 (19,600) (23,200)
Net assets 22,826 26,547
Capital and reserves
Called up share capital 9 3,493 3,485
Capital redemption reserve 11 1,112 1,112
Share premium account 11 10,355 10,197
Treasury reserve 11 (12) (107)
Share option reserve 11 1,955 1,825
Profit and loss account 11 5,923 10,035
Shareholders’ funds 22,826 26,547
The financial statements were approved by the Board of Directors and authorised for issue on  
21 January 2014 and are signed on its behalf by:
Richard Kellett-Clarke
Chief Executive Officer
The accompanying accounting policies and notes form an integral part of these accounts. Idox plc Annual Report and Accounts 2013 86
Financial Statements
Notes to the Company Financial Statements
For the year ended 31 October 2013
1 ACCOUNTING POLICIES
Basis of preparation
The accounts have been prepared in accordance with applicable United Kingdom accounting 
standards and under the historical cost convention.
No profit and loss account is presented for the Company as permitted by Section 408 of the 
Companies Act, 2006. A cash flow statement has not been provided as permitted by FRS1 
(Revised) Cash Flow Statements.
FRS 20 Share based payment
All share-based payment arrangements granted after 7 November 2002 that had not vested prior  
to 1 November 2006 are recognised in the financial statements.
All goods and services received in exchange for the grant of any share-based payment are measured 
at their fair values. Where employees are rewarded using share-based payments, the fair values of 
employees’ services are determined indirectly by reference to the fair value of the instrument granted 
to the employee. This fair value is appraised at the grant date and excludes the impact of non-market 
vesting conditions (for example, profitability and sales growth targets).
Employees to whom share options have been granted provide their services in subsidiary 
companies of Idox plc. All equity settled share-based payments are recognised as an expense  
in the profit and loss account of the relevant subsidiary company. In Idox plc, the cost is allocated  
to investments in subsidiaries.
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the 
vesting period, based on the best available estimate of the number of share options expected to 
vest. Estimates are revised subsequently if there is any indication that the number of share options 
expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is 
recognised in the current period. No adjustment is made to any expense recognised in prior periods 
if share options that have vested are not exercised.
Upon exercise of share options, the proceeds received net of attributable transaction costs are 
credited to reserves.
Deferred taxation
Deferred tax is recognised on all timing differences where the transactions or events that give the 
company an obligation to pay more tax in the future, or a right to pay less tax in the future, have 
occurred by the balance sheet date. Deferred tax assets are recognised when it is more likely than 
not that they will be recovered. Deferred tax is measured using rates of tax that have been enacted or 
substantively enacted by the balance sheet date.
Investments
Fixed asset investments in subsidiary undertakings are stated at cost less provision for impairment. Idox plc Annual Report and Accounts 2013 87
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual 
arrangements entered into. An equity instrument is any contract that evidences a residual interest in 
the assets of the entity after deducting all of its financial liabilities.
Where the contractual obligations of financial instruments (including share capital) are equivalent 
to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial 
liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to 
financial liabilities are included in the profit and loss account. Finance costs are calculated so as to 
produce a constant rate of return on the outstanding liability.
Where the contractual terms of share capital do not have any terms meeting the definition of a 
financial liability then this is classed as an equity instrument. Dividends and distributions relating  
to equity instruments are debited direct to equity.
Interest and expenditure arising on financial instruments is recognised on the accruals basis  
and credited or charged to the profit and loss account in the financial period to which it relates.  
The company does not apply FRS 26.
2 DIRECTORS AND EMPLOYEES
There are no wages and salaries paid by the parent company.
The company has no employees and Directors are remunerated by other Group companies. Details 
of the remuneration for each Director are included in the Report on Remuneration which can be found 
on pages 18 to 20 but which do not form part of the audited accounts.
3 DIVIDENDS
2013 
£000
2012 
£000
Final dividend paid in respect of the year ended  
31 October 2012 and 31 October 2011 1,394 1,245
Pence per ordinary share 0.40p 0.36p
Interim dividend paid in respect of the year ended 
31 October 2013 and 31 October 2012 1,044 951
Pence per ordinary share 0.30p 0.275p
The Directors have proposed the payment of a final dividend of 0.40p per share, which would amount 
to £1,397,000 (2012: 0.40p).
Idox plc Annual Report and Accounts 2013 87 Idox plc Annual Report and Accounts 2013 88
Financial Statements
Notes to the Company Financial Statements continued
For the year ended 31 October 2013
4 LOSS FOR THE FINANCIAL YEAR
The parent company has taken advantage of section 408 of the Companies Act 2006 and has not 
included its own profit and loss account in these financial statements. The parent company’s loss 
for the year was £1,622,000 (2012: loss £3,103,000).
5 INVESTMENTS
Investment  
in Group 
undertakings  
£000
Cost or market value
At 1 November 2012 74,244
Additions 2,314
Disposals (1,162)
At 31 October 2013 75,396
Impairment
At 1 November 2012 2,600
Provided in the year 457
At 31 October 2013 3,057
Net book amount
At 31 October 2013 72,339
At 31 October 2012 71,644
During the year the Directors impaired the investment in TFPL Limited by £457,000. On 1 July 2013 
the year, the investment in TFPL Limited was disposed of.  Idox plc Annual Report and Accounts 2013 89
At 31 October 2013 the company held investments in the following companies:
Country of 
registration
Class of  
share held 
Proportion 
held
Nature of 
business
Idox Software Limited England Ordinary 100% Software services
Idox Information Services Limited England Ordinary 100% Information services
CAPS Solutions Limited England Ordinary 100% Dormant company
i-documentsystems Trustees Limited England Ordinary 100% Corporate trustee 
of Employee share 
ownership trust
Grantfinder Limited England Ordinary 100% Information services
Strand Electoral Management  
Services Limited
England Ordinary 100% Software services
J4B Nederland BV Holland Ordinary 100% Information services
Strand Enterprises Limited England Ordinary 100% Dormant company
Idox Information Solutions Limited (formerly 
J4B Software & Publishing Limited)
England Ordinary 100% Information services
Plantech Limited England Ordinary 100% Dormant company
McLaren Software Group Limited Scotland Ordinary 100% Holding Company
McLaren Software Limited Scotland Ordinary 100% Software services
McLaren Software Inc USA Ordinary 100% Software services
McLaren Consulting BV Holland Ordinary 100% Dormant company
Lalpac Limited England Ordinary 100% Software services
Interactive Dialogues Limited England Ordinary 100% Software services
Interactive Dialogues NV Belgium Ordinary 100% Software services
CT Space Limited England Ordinary 100% Software services
Buildonline Global Limited England Ordinary 100% Dormant company
Buildonline Ireland Limited Ireland Ordinary 100% Software services
CT Space SARL France Ordinary 100% Software services
CT Space GmbH Germany Ordinary 100% Software services
CT Space Technologies Pty India Ordinary 100% Software services
CT Space Inc USA Ordinary 100% Software services
Citadon Inc USA Ordinary 100% Software services
Opt2Vote Limited England Ordinary 100% Software services
Currency Connect BV Holland Ordinary 100% Software services
FMx Limited England Ordinary 100% Software services
McLaren Software Australia Pty Limited Australia Ordinary 100% Software services
Artesys International SA France Ordinary 100% Software services
The Company holds 51% of the ordinary share capital of De Jong & Laan Subsidieadviseurs BV, a 
company registered in Holland. The results have not been consolidated into the Group accounts as 
the amounts were immaterial in the year to 31 October 2013. Idox plc Annual Report and Accounts 2013 90
Financial Statements
Notes to the Company Financial Statements continued
For the year ended 31 October 2013
6 DEBTORS
2013
£000
2012
£000
Falling due within one year:
Other debtors 197 133
Falling due after one year:
Other debtors 64 188
Amounts owed by Group undertakings 1,815 1,928
1,879 2,116
Included in the above for the company is £1,815,000 (2012: £1,928,000) owed by Group undertakings 
which is due after more than one year. The Directors consider this loan to be recoverable.
7 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2013
 £000
2012
 £000
Bank loan 3,700 2,300
Amounts owed to Group undertakings 27,761 20,088
Other creditors 289 1,536
Accruals and deferred income 239 222
31,989 24,146
8 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2013
£000
2012
£000
Bank loan 19,600 23,200
At the balance sheet date the Company had three loan facilities in place with Bank of Scotland Plc 
consisting of one term loans and two revolving credit facilities. 
At the balance sheet date, the amortised cost of the term loan was £7,317,000 and during the period 
the loan was held the average interest rate paid was 3.14%.
The Company has a revolving credit facility to fund working capital requirements. At the balance sheet 
date, the amortised cost of this facility was £1,964,000 and during the period the facility was held the 
average interest rate paid was 3.13%. Idox plc Annual Report and Accounts 2013 91
The Company has a revolving credit facility of £15m which was made available in order to finance 
business acquisitions. In November 2012, £1.8m of this facility was drawn down in order to fund the 
acquisition of FMx Limited. In April 2013, £2.1m of this facility was drawn down in order to fund the 
acquisition of Artesys International. The total amortised cost of the acquisition revolving credit facility 
at the year end was £13,795,000 and the average interest rate paid during the period the facility was 
held was 3.15%. 
As security for the above loans, the Bank of Scotland Plc holds a bond and floating charge over the 
assets of the Company, a composite guarantee supported by each Group company and a share 
pledge in respect of the entire issued share capital of each subsidiary company.
The Directors’ estimate that the fair value of the Company’s borrowing is not significantly different  
to the carrying value.
9 SHARE CAPITAL
2013
£000
2012
£000
Authorised:
650,000,000 ordinary shares of 1p each (2012: 650,000,000) 6,500 6,500
Allotted, called up and fully paid
As at 1 November 3,485 3,463
Issued and allotted during the year 8 22
349,313,142 ordinary shares of 1p each (2012: 348,479,812) 3,493 3,485
Movement in issued share capital in the year
During the year to 31 October 2013, three employees exercised share options. To satisfy the exercise of 
one tranche of these options, the company issued and allotted 833,330 new ordinary shares of 1p each.
The company has one class of ordinary shares which carry no right to fixed income.
At 31 October 2013, there were 2,153,622 (2012: 1,390,328) shares in issue under ESOP. During  
the year the average issue share price was 44p (2012: 34p).
At 31 October 2013 there were 52,000 (2012: 452,000) shares held in treasury. Idox plc Annual Report and Accounts 2013 92
Financial Statements
Notes to the Company Financial Statements continued
For the year ended 31 October 2013
10 SHARE OPTIONS 
The company has an unapproved share option scheme for all employees (including Directors). All 
share options are exercisable at a price equal to the average market price of the company’s shares 
on the date of grant. The vesting period is quarterly from the date of grant. The options are normally 
settled in equity once exercised.
An Employee Share Investment Trust is in place to allow employees a tax efficient way of investing in 
the Company. The Company purchases matching shares which become the property of the employee 
after a three year vesting period. 
Details of all share options over 1p Ordinary shares, falling within the measurement and recognition 
criteria of FRS 20 “Share-based Payment”, including their contractual life and exercise prices are  
as follows:
At start of year Granted Exercised Lapsed
At end  
of year
Exercise 
price
Exercise 
date from
Exercise 
date to
1,166,000 – (300,000) – 866,000 7.50p May 2007 May 2017
452,000 – – – 452,000 8.125p Jun 2007 Jun 2017
275,000 – – – 275,000 15.00p Dec 2007 Dec 2017
1,192,308 – – – 1,192,308 13.00p Aug 2008 Aug 2018
1,033,334 – – – 1,033,334 15.00p Aug 2008 Aug 2018
8,105,366 – – – 8,105,366 10.25p Mar 2010 Mar 2020
12,300,000 – (933,330) (166,670) 11,200,000 20.00p Mar 2011 Mar 2021
1,099,998 – – – 1,099,998 18.00p Mar 2011 Mar 2021
850,000 – – – 850,000 35.00p Apr 2012 Apr 2022
750,000 – – – 750,000 44.00p Sep 2012 Sep 2022
– 450,000 – – 450,000 35.75p Jul 2013 Jul 2023
27,224,006 450,000 (1,233,330) (166,670) 26,274,006 Idox plc Annual Report and Accounts 2013 93
The following table sets out the number of share options and associated weighted average exercise 
price (WAEP) outstanding during the year:
2013 2012
No
 WAEP
Pence No
 WAEP
Pence
Outstanding at the beginning of the year 27,224,006 16.87 29,002,008 14.86
Granted during the year 450,000 35.75 1,600,000 39.22
Exercised during the year (1,233,330) 16.96 (3,078,002) 9.36
Lapsed during the year (166,670) 20.00 (300,000) 18.67
Outstanding at the end of the year 26,274,006 17.17 27,224,006 16.87
Exercisable at the end of the year 24,044,840 15.98 19,640,226 12.12
The share options outstanding at the end of the year have a weighted average remaining contractual 
life of 7 years. The share options exercised during the year had a weighted average share price of 
16.96p and a weighted average market price of 37p.
The fair values were calculated using the Black-Schöles Pricing Model and the following information:
Date of 
issue
Number 
granted
No.
Weighted 
average 
share 
price
Pence
Weighted 
average 
exercise 
price
Pence
Expected 
volatility
%
Expected 
life
Years
Risk free  
rate
%
Expected 
dividend 
yield
%
Weighted 
average 
fair value 
at grant 
date
 £
Jul 13 450,000 36.5 35.75 35 10 4.65 0.6 0.19
Expected volatility was determined by calculating the historical volatility of the company’s share 
price over the previous 3 years. The expected life used in the model is adjusted, based on the 
management’s best estimate, for the effects of non-transferability, exercise restrictions and 
behavioural considerations.
The Group recognised total expenses of £511,000 (2012: £731,000) related to equity-settled share-
based payment transactions during the year. Expenses of £495,000 (2012: £568,000) related to share 
options granted and £16,000 (2012: £163,000) related to share options exercised. In 2013, £12,000 
(2012: £24,000) of expenses relating to equity-settled share-based payment transactions were in 
respect of discontinued operations. These expenses all related to share options granted.  Idox plc Annual Report and Accounts 2013 94
Financial Statements
Notes to the Company Financial Statements continued
For the year ended 31 October 2013
11 SHARE PREMIUM ACCOUNT AND RESERVES
The company
Capital 
redemption 
reserve
£000
Share 
premium 
account
£000
Treasury 
reserve
£000
Share 
option 
reserve
£000
Profit 
and loss 
account
£000
Total
£000
At 1 November 2012 1,112 10,197 (107) 1,825 10,035 23,062
Issue of share capital – 158 – – – 158
Share options  
reserve movement – – – 290 – 290
Exercise of options  
from treasury reserve – – 95 (160) (52) (117)
Dividends paid – – – – (2,438) (2,438)
Loss for the year – – – – (1,622) (1,622)
At 31 October 2013 1,112 10,355 (12) 1,955 5,923 19,333
The capital redemption reserve for the Group and the Company was created during 2003 when 
the entire deferred ordinary share capital was bought in exchange for one ordinary 1p share. Other 
reserves relate to the issued share capital and share premium account in the Company’s subsidiary 
undertaking, Idox Software Limited, and has been treated in accordance with FRS 6 under merger 
accounting. The share options reserve represents shares to be issued on potential exercise of those 
share options that have been accounted for under FRS20 (IFRS2) Share Based Payments.
The purpose of the treasury reserve is to enable the Board to issue share options to employees.
12 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS 
2013
£000
2012
£000
Loss for the financial year (1,622) (3,103)
Issue of share capital 166 856
Dividends received – 17,000
Dividends paid (2,438) (2,196)
Exercise of options from treasury reserve – (37)
Treasury shares purchased (117) (1,524)
Shares option reserve movement 290 568
Net (decrease)/increase in shareholders’ funds (3,721) 11,564
Shareholders’ funds at 1 November 2012 26,547 14,983
Shareholders’ funds at 31 October 2013 22,826 26,547 Idox plc Annual Report and Accounts 2013 95
13 RELATED PARTY DISCLOSURES
As the parent company of a wholly-owned Group, the Company is exempt from the requirements  
of FRS 8 to disclose transactions with other members of the Group headed by Idox plc.
As in the prior year, no transactions with other related parties, including key management  
personnel, were undertaken with the company.
14 POST BALANCE SHEET EVENTS
On 1 November 2013 the Group issued 816,914 ordinary shares of 1p each in order to satisfy  
an exercise of employee share options.  Idox plc Annual Report and Accounts 2013 96
Company Information
Secretary and Registered Office: J Mackie 
 2nd Floor 
 Chancery Exchange 
 10 Furnival Street 
 London 
 EC4A 1AB
Nominated Advisor & Joint Broker: N+1 Singer Advisory LLP 
 1 Bartholomew Lane 
 London 
 EC2N 2AX
Auditor: Grant Thornton UK LLP 
 Grant Thornton House 
 Melton Street 
 Euston Square 
 London  
 NW1 2EP 
Corporate Solicitors: Memery Crystal 
 44 Southampton Buildings 
 London  
 WC2A 1AP
Registrars: Share Registrars Limited 
 Suite E, 1st Floor 
 9 Lion and Lamb Yard 
 Farnham 
 Surrey  
 GU9 7LL
Company Registration Number: 3984070
Financial Calendar: Annual General Meeting – 27 February 2014 
 Announcement of 2014 Interim Results – July 2014 
 Announcement of 2014 Annual Report – December 2014
Company Information
For the year ended 31 October 2013 www.accruefulton.com
Designed and produced by Idox plc  Annual Report & Accounts 2013
idoxplc.com
Idox plc
Second Floor, Chancery Exchange
10 Furnival Street, London, EC4A 1AB
T +44 (0) 870 333 7101 
F +44 (0) 870 333 7131 
E investors@idoxplc.com
Annual Report
& Accounts 2013