Innovative
Informative
KBC Advanced Technologies plc
Annual report 2014
KBC Advanced Technologies plc Annual report 2014 Invaluable
KBC delivers innovative software technology and informative specialist consultancy 
to solve the hydrocarbon processing industry’s toughest challenges from reservoir 
to refinery, pump to processing facility. We aim to provide invaluable solutions to 
our customers, empowering them to achieve proven, sustainable and substantial 
improvements to their asset performance. KBC Advanced Technologies plc  
Annual report 2014 1
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
OVERVIEW
2 At a glance
4 Chairman’s statement
STRATEGIC REPORT
7 Chief Executive’s review
10 Our business model and strategy
12 Financial review and 
key performance indicators
14 Principal risks and risk management
GOVERNANCE
16 Board of Directors
17 Executive Committee 
and Operating Committee
18 Introduction to governance
19 Corporate governance statement
22 Remuneration Committee report
26 Directors’ report
FINANCIAL STATEMENTS
30 Independent auditors’ report
31 Group income statement and 
Group statement of 
comprehensive income
32 Group statement of changes in equity
33 Group balance sheet
34 Group cash flow statement
35 Notes to the Group financial statements
57 Company balance sheet
58 Notes to the Company 
financial statements
SHAREHOLDER INFORMATION
62 Notice of the Annual General Meeting
IBC Five‑year summary and 
shareholder information
Revenue
£76.0m
14 76.0
13 65.1
12 63.1
11 55.7
10 53.1
Adjusted profit before tax
£9.5m
14 9.5
13 8.4
12 5.8
11 5.9
10 4.9
Pipeline of contracted work
£88.0m
14 88.0
13 78.2
12 82.9
11 48.7
10 58.7
CONTENTS
HIGHLIGHTS
We deliver preferred solutions in two ways:
Through the integration of these two offerings we offer an 
invaluable service, dedicated to making our clients world-class 
in operational excellence and profitability.
OUR BUSINESS
3
Innovative technology
KBC’s market‑ leading software modelling 
solutions and intellectual property enable 
clients to generate design and operating 
strategies across the complete hydrocarbon 
value chain for upstream, midstream, 
downstream and petrochemicals.
 1 2
1 2
Informative consulting
KBC’s talented consultants have a distinct 
blend of technical and organisational 
expertise that equip us with a spectrum 
of operational services to guide our 
clients’ key strategic decisions.
Read more about our 
Technology business on p9
Read more about our 
Consulting business on p8 KBC Advanced Technologies plc 
Annual report 2014 2
AT A GLANCE
where
operate
we
KBC is strategically placed to grow in both new and existing 
markets. We are focusing on key high-growth markets that 
will allow us to expand substantially whilst consistently 
delivering invaluable services for our existing clients.
For more than 30 years KBC has been linking 
advanced technology with consulting expertise 
to guide hydrocarbon processing companies 
to greater heights in over 90 countries across 
the globe. With the acquisitions of Infochem 
and FEESA, KBC is positioned to be the 
leading trusted software provider and 
technical consultancy across both upstream 
and downstream sectors.
Our business
Number of employees
330+
Contracts awarded
£79.8m
Countries of business
90+
Read more about our people in the 
Chief Executive’s review on p7–9
1 KBC Advanced Technologies plc  
Annual report 2014 3
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
1 North America
KBC continued its long‑ term engagements for 
all software and service offerings by providing 
major North American clients with significant 
industry expertise – critical to the safe and 
reliable operation of their facilities – while also 
adding new major client accounts to leverage 
future growth.
2  Russia
KBC continues to pursue opportunities in 
the FSU given the refining sector will undergo 
significant expansion in the future but we 
approach this region cautiously with close 
attention to current constraints in this 
market sector.
3  Asia
KBC was engaged by a national oil company 
in South East Asia to lead the content and 
delivery of an Operational Excellence 
Academy (OEA) programme. The OEA 
programme was designed around best 
practice instructional delivery design and 
focused on developing plant leaders with 
technical functional leadership capabilities to 
effectively drive operational excellence and 
sustain performance. The OEA programme 
has been rolled out to cover downstream 
operations with an initial contract value at 
over US$3m.
KEY
Our offices
2
Middle East
In the first year of increased focus on 
this region, KBC successfully established 
strong positions in Saudi Arabia and 
Kuwait, in addition to positioning itself 
well in the United Arab Emirates and 
Oman. In Saudi Arabia, KBC contracted 
a long‑ term partnership agreement with 
the world’s largest integrated refining and 
petrochemical complex. In Kuwait, KBC 
signed contracts with various national oil 
company subsidiaries.
3
South America
KBC continued its strong support for major national oil 
companies throughout South America, most notably 
being awarded a US$48.6m addition to a large 
business transformation contract for one of 
its key clients.
North Africa
KBC positioned itself well in both Egypt and Algeria, 
two countries where the Group had opportunities 
for growth. KBC signed wide‑ ranging agreements 
to form partnerships for workforce development, 
operational excellence and profit improvement. 
In Algeria, KBC executives positioned the Group 
for a partnership with one of Africa’s largest 
oil companies. CHAIRMAN’S STATEMENT
Delivering growth 
throughout the year
  Another year of good strategic, 
operational and financial performance
  Revenues up 17% to £76.0m  
(2013: £65.1m)
  Adjusted profit before tax
1
 up 13% to £9.5m 
(2013: £8.4m)
  Reported profit before tax of £6.7m  
(2013: £7.1m) 
  Recommended final dividend up 
10% to 1.1p per share (2013: 1.0p)
  Equity fundraising of £23.1m, net 
of expenses, to fund acquisitions 
and provide working capital for 
larger contracts
  Acquisition and integration of FEESA, 
improving KBC’s product and service 
offerings across the full breadth of the 
hydrocarbon processing industry
  Consulting revenue increased by 17%, 
with strong performance in South America, 
further growth in Asia and the Middle East, 
and continued improvement in Consulting 
operating margin
   Another record year for Technology, with 
revenues up 17% and key contract awards 
in Asia, South America, the Middle East 
and Europe
  Strong year end pipeline of contracted 
work, up by 13% to a record £88.0m 
(2013: £78.2m)
  Strengthened executive leadership 
with appointment of a new CEO 
  KBC’s medium and long‑ term market 
prospects continue to offer encouraging 
international growth opportunities
2014 was another good year 
for KBC, with strong financial 
performance and continued 
progress across the Group 
in all aspects of our strategy. ”
Summary
2014 was another good year for KBC. 
The Group performed in line with expectations, 
raised equity for acquisitions and working 
capital and completed an important strategic 
acquisition. The Company also implemented 
a successful executive succession, appointing 
a new Chief Executive Officer from within 
the Group and appointing a new independent 
non‑ executive director to the Board.
Following a strong finish to 2014, KBC 
has started 2015 well and, although there 
are many new industry challenges, we remain 
well positioned to continue our long‑term 
strategy of increasing and strengthening the 
Technology business, improving the margins 
of the Consulting business and continuing our 
long‑term expansion in the upstream oil and 
gas industry, together with growth in hotspots 
such as the Middle East, Southeast Asia and 
South America.
Results
Group revenue for the year increased by 17% 
to £76.0m (2013: £65.1m). Profit before tax 
calculated on an adjusted basis, as detailed 
in note 5b, was 13% higher than the previous 
year at £9.5m (2013: £8.4m). This reflected 
an adjusted profit margin of 13%. Adjusted 
profit after tax increased by 20% from £5.5m 
to £6.6m. 
The Company raised £23.1m net of expenses 
from an equity placing in June 2014. £10m 
of the placing monies was used to fund the 
acquisition of FEESA Limited in July 2014 
and a further £4m was used for working 
capital, particularly for large projects 
in South America and the Middle East.
HIGHLIGHTS
(1)  Adjusted for development costs carried forward, amortisation of 
development costs carried forward, amortisation of acquisition 
intangibles, share based payment charges and other items which 
do not reflect underlying operations (see note 5b) KBC Advanced Technologies plc  
Annual report 2014 5
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
We entered 2015 with a record 
pipeline of contracted work 
and a healthy balance sheet 
to support the Group and 
its continued growth.”
Despite an improved performance, the net 
result of this fundraising, coupled with prior 
period one‑ off tax credits, meant that basic 
earnings per share reduced to 5.7p (2013: 9.5p) 
and earnings per share calculated on an adjusted 
basis remained broadly steady at 9.3p per share 
in 2014, from 9.5p in 2013. Diluted earnings 
per share was 5.5p in 2014, compared to 
9.2p in 2013.
Dividend
The Board proposes to pay a final dividend 
for the 2014 financial year of 1.1p per share 
(2013: 1.0p). The total cost of the proposed 
dividend amounts to £0.9m for the 2014 full 
year (2013 full year: £0.8m).
Board and management
During 2014 we strengthened the Board 
and executive leadership of KBC with 
major external hires and internal promotions. 
In November we announced the appointment 
of a new Chief Executive Officer effective 
1 January 2015, a succession we committed 
to when I took over the executive leadership 
of KBC. Andrew Howell was appointed to 
drive the next phase of KBC’s strategy, with 
particular emphasis on developing its position 
in the upstream oil and gas industry and the 
Technology business. Andrew was previously 
the Managing Director of KBC’s Technology 
business and had gained wide oil and 
gas experience with BP, Hyprotech and 
Schlumberger before joining KBC in 2011. 
I remain Chairman of the Company. We also 
strengthened the composition of the Board 
with the addition in February 2014 of a 
new independent non‑ executive director, 
Paul McCloskey, and with the appointment 
of Andrew Howell and Kevin Smith to the 
Board in April 2014.
A new and effective executive team was 
established at the end of the year in order 
to deliver clear leadership across all aspects 
of our business. Kevin Smith was promoted 
to Chief Commercial Officer (“CCO”), a new 
client‑ facing position which spans both 
Consulting and Technology, to drive the 
commercial performance of KBC. Mike Aylott 
has been promoted to Chief Technology 
Officer (“CTO”) from his role of managing 
all the engineering software development. 
The CTO position has been created to 
drive the realisation of the strategic direction 
of the Group towards commercial technology 
platforms underpinning all KBC’s activities. 
This includes expanding the range of our 
engineering software as well as delivering 
the full range of KBC knowledge and intellectual 
property through technology. Ramon Loureiro, 
our most senior partner, remains a key member 
of the executive team, ensuring the tradition 
and success of KBC’s profit improvement 
programmes is captured and further developed 
within the Group’s strategy. In addition, the 
business development resources of the Group 
have been strengthened with a number of 
external recruits as part of a sales transformation 
strategy to improve commercial performance.
Current trading and outlook
During the second half of 2014 the oil and 
gas industry experienced a major upheaval, 
with a significant increase in production 
in North America and Iraq, an unexpected 
slowdown in growth regions such as China 
and a subsequent oil price fall as a result of 
OPEC choosing not to control the market price. 
The longer‑term implications for the market 
are still not fully clear, but KBC is assuming a 
scenario of low oil prices for at least 18 months 
and some further belt‑ tightening by our clients. 
KBC is not affected directly by the US domestic 
oil exploration downturn since a large proportion 
of its business is in the downstream part of that 
market which will be less adversely affected.
Despite this backdrop, KBC achieved solid 
results in 2014 and so far in 2015 the market 
for KBC’s services, while shifting, has remained 
steady. It is difficult to predict the full effect 
of the oil price on KBC’s performance in 2015. 
Some aspects are positive: more clients need 
to optimise their existing assets; Operational 
Excellence practices are in high demand; 
KBC’s Technology solutions are helping clients 
optimise production rates at lower energy costs; 
there is strategic rechecking of the economic 
viability of large capital expenditure projects; 
as oil companies reduce their work forces, 
they will need consultants to fill the gaps; 
downstream refining profitability is now 
returning to higher margins than have been 
seen for several years; and upstream operators 
are looking to drive more efficient production.
At the same time there are potential 
challenges for KBC: pricing pressure from 
a general focus on the oil and gas supply 
chain; cash collection and conversion; revenue 
from upstream oil exports sometimes being 
needed by national oil companies (“NOCs”) 
in order to fund downstream modernisation 
projects; and upstream capital projects delayed 
and postponed. Therefore, KBC is not being 
complacent and is taking action to reshape 
and refocus its business and organisation and 
has additional contingency plans should the 
market for our services deteriorate.
We entered 2015 with a healthy pipeline of 
contracted work of £88.0m (2013: £78.2m), a 
record for the Group. Together with a number 
of key Consulting contract wins in the first two 
months of 2015, this leaves KBC well positioned 
to meet its objectives for the coming year. 
As always, the exact timing of contract awards 
will continue to affect results within any year. 
However, the strength of the pipeline of 
contracted work, an enhanced range of products 
and services and major internal progress in 
2014 give the Board confidence for 2015.
Ian Godden
Chairman
17 March 2015 KBC Advanced Technologies plc 
Annual report 2014 6
Strategic  
report
7 Chief Executive’s review
10 Our business model and strategy
12 Financial review and key performance indicators
14 Principal risks and risk management KBC Advanced Technologies plc  
Annual report 2014 7
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
CHIEF EXECUTIVE’S REVIEW
Good prospects 
for the year ahead
Delivering on our strategy
2014 saw significant strategic contract 
wins for KBC in both our targeted upstream 
market and our core downstream business. 
Consulting continued to deliver successfully 
in South America, winning a $48.6m contract 
extension with a South American oil and gas 
company. This was complemented by strong 
Consulting performance in the Middle East 
as well as further growth in Asia and Europe. 
Our Technology offering in upstream oil 
and gas continued to grow and we were 
particularly pleased to see the products from 
our newest acquisition (FEESA) having an 
immediate impact when bundled with our 
existing offerings. The contract award from 
a European oil field services company in the 
fourth quarter of 2014 followed a number 
of other Technology contract awards of note 
in the United States, the Middle East, China, 
Thailand and Vietnam. It is very encouraging 
to see the strong demand for KBC’s Technology 
products supporting KBC’s focus as a key 
software player in the hydrocarbon industry.
2014 was another good year for KBC on several 
fronts and it was particularly pleasing to see 
the measures put into place by the management 
team over recent years resulting in improved 
performance and growth by the Company. 
The partner organisation in Consulting has 
driven personal ambition and a focus on 
commercial targets for margin realisation 
and quality of work delivered. The continued 
expansion of Technology sales through the 
Consulting business and newly expanded 
direct sales channels led to a record level of 
revenue. Consulting and Technology, working 
closely together, each delivered 17% growth 
in top‑line revenue for the year. KBC further 
penetrated the upstream oil and gas market, 
assisted by the important acquisition of 
FEESA, which enables the Group to offer 
software and consulting in the production 
flow assurance area, anchoring wells and 
pipelines to KBC’s established business in 
gas processing, refining and petrochemicals. 
KBC is now very well positioned to offer 
technical engineering and people performance 
solutions across the full breadth of the 
hydrocarbon processing industry and is able 
to move quickly in this chain to support the 
developing segments.
Innovation and information
During 2014 KBC embarked on an ambitious 
project to align all our software releases 
to a common release schedule with shared 
infrastructure and integration. Version 6 of 
Petro‑ SIM™ (process facility simulator), the 
SIM™ models (refinery reactors), Maximus™ 
(wellbore and pipeline hydraulics simulator), 
Multiflash™ (reservoir PVT chemistry) and 
Energy‑ SIM™ (energy optimisation) have all 
now been aligned, with significant advances 
in the interoperability of our technology. 
Clients will now benefit from the full integration 
of well, pipeline, offshore platform, gas plants, 
refineries and petrochemicals models with the 
ability to execute time‑ based scenarios including 
use of their own workflows and plug‑ ins to 
increase production and reduce costs. 2014 
also saw the expansion of KBC’s alliances with 
the addition of Flaretot™, a third‑party process 
plant flare safety simulator, to the KBC software 
suite and the announcement of a plug‑ in to 
Petro SIM for transient pipeline modelling 
from BPT, a Norway based technology 
company. KBC will continue to expand the 
“ecosystem” in which hydrocarbon process 
industry clients can embed technology that 
furthers the value of our platforms and provides 
another high quality revenue stream and will 
seek further alliances with oil field services 
and industrial automation players.
In line with our corporate strategy, 
we have continued to productise parts 
of our Consulting knowledge, experience 
and information into our software and digital 
technologies to enhance Technology revenue, 
allow for intellectual property charges 
in Consulting fees and support the scale 
and leverage of the Consulting organisation 
around technology platforms. The appointment 
of a CTO for KBC will drive this technology 
strategy throughout the Group and our 
alliance partners.
Our people
The KBC team includes a diverse set of 
consulting and software experts in more than 
11 countries, delivering high quality project 
work and software technology. In 2014 the 
enhancement of both Consulting and software 
resources as well as corporate shared services 
has driven results for KBC. KBC began a 
reorganisation in the last quarter of 2014 
to promote the new company strategy with a 
defined commercial sales group covering sales,
Revenue by segment
PIPELINE OF CONTRACTED WORK BY SEGMENT
47.2
44.3
42.7
39.2
55.0
17.9
21.0
18.8
13.0
13.8
53.0
TOTAL REVENUE £m
2010 2011 2012 2013 2014
55.7 63.1 65.1
76.0
TECHNOLOGY CONSULTING
Technology 
35%
Consulting 
65% KBC Advanced Technologies plc 
Annual report 2014 8
Ever greater , more 
integrated solutions
CHIEF EXECUTIVE’S REVIEW CONTINUED
Our people continued
business analysis, product management 
and marketing, all targeted at achieving high 
quality, recurring revenue. A new delivery 
organisation has been built that concentrates 
on delivering all aspects of quality in client 
projects to achieve target margins. KBC’s 
focus on software technology platforms and 
productising Consulting knowledge, to drive 
higher margin sales and increased scale in 
Consulting, has been further enhanced by the 
establishment of a CTO role with a remit to 
expand technology development and adoption 
by KBC. The Company has been reorganised 
into a clear structure that provides focus on 
commercial, operational, innovation and 
back office disciplines appropriate for 
a technology‑based consulting firm.
KBC’s market
For the five years to 2014 high energy prices 
drove strong capital investment and strong 
profit margins throughout the oil industry. 
Those same economics also encouraged 
technical innovations that led to a rapid oil 
production increase and an increasingly 
oversupplied energy market. The oil market 
responded rapidly to the decision by OPEC 
at the end of November 2014 to renounce 
its traditional market‑ balancing role, with oil 
prices plunging more than 50%. These lower 
prices turned the industry on its head and for 
oil companies the key to both survival and 
success is to control their positions in the 
market, rather than being controlled by it. 
To achieve this, KBC believes that the operators 
will need access to many of KBC’s products 
and services to enhance their performance.
In the near term, companies in our industry 
need to focus on revenue generation and 
capital investment to safeguard their balance 
sheets, generate cash flow and service debt. 
In the medium term, success requires 
companies to focus on sound operational 
fundamentals and ongoing evaluation of 
their market position to ensure performance 
is optimised against a changing market 
environment. In the long term, companies 
will be best served by revisiting and 
revalidating their investments against the 
market potential and their own corporate 
strategy. KBC can assist in all these areas 
and has a strong reputation for delivering 
value on all these horizons.
Consulting revenue in 2014 increased by 17% 
to £55.0m (2013: £47.2m) with an operating 
margin of 4% (2013: 3%). Out of the Consulting 
pipeline of work of £57.3m (2013: £52.7m), 
£31.2m (2013: £30.6m) is expected to convert 
into revenue in 2015. Through our focus on 
high quality Consulting revenue, our target 
is to deliver Consulting margins of 9%–10% 
over the next two years.
Many other promising developments in the 
Middle East and North Africa have resulted 
from a focused investment in the region that 
will add further value for KBC.
2014 saw a return to growth for Consulting 
solutions in the North America market, strong 
growth in Southeast Asia and good growth 
in Russia.
The large South American business 
transformation project continues to deliver 
on time and on budget, with clear recognition 
by the client of KBC’s quality consulting, 
methodologies, project management 
and technology in delivering value in many 
aspects of the refinery transformation.
The focus on the Consulting partner 
model with its sales, solution, execution 
and mentoring accountability has continued to 
prove valuable in the quest to raise Consulting 
margins and build strength in KBC’s key 
geographical markets. Senior leadership has 
been strengthened and the Group is in a good 
position to take advantage of growth areas 
in the South America, Middle East and 
Southeast Asia markets.
The Consulting business functions have 
been grouped into four key areas for delivery 
of services to clients: Production Optimisation, 
Operations Management, Strategic Business 
Transformation and Human Performance 
Improvement. These are the core value areas 
of KBC’s Consulting offering and are being 
re‑ packaged to achieve bigger contract 
engagements with clients to improve 
leverage, utilisation and margins for KBC.
Consulting
Revenue
£55.0m
(2013: £47.2m)
55.0
47.2
44.3
42.7
39.2 10
11
12
13
14
54%  
Revenue due  
within 1 year 
(2013: 58%)
46%  
Revenue due in  
more than 1 year 
(2013: 42%)
Pipeline of contracted work
ACHIEVEMENTS IN 2014
  Continued quality execution of the South American business transformation project
    A large (US$48m) extension to the same South American project
    First profit improvement and strategy project in Kuwait in many years
   Repeat business for a second gas plant optimisation project in Saudi Arabia 
   An award for the establishment of an Operational Excellence Academy in Malaysia
  A significant sustainable profit improvement programme in Thailand
  A major technical capability development project award in Saudi Arabia
£57.3m 
(2013: £52.7m) KBC Advanced Technologies plc  
Annual report 2014 9
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
2014 was a record year for KBC’s Technology 
business, reflecting the focus and determination 
of the organisation to be a key engineering 
software provider to the industry. Revenue 
for the year was up 17% on 2013 at £21.0m 
(2013: £17.9m), representing good year on 
year progress.
The increase in Technology revenue reflects 
our drive and determination to raise the 
proportion of Technology revenue in the long 
term with Technology representing 28% of 
2014 revenue (2013: 27%). Recurring revenue 
for 2014 was a record £9.0m (2013: £7.8m). 
Out of the total Technology contracted pipeline 
of work of £30.7m (2013: £25.5m), £9.3m 
(2013: £6.7m) is expected to convert into 
revenue in 2015. FEESA and Infochem 
technology revenue has exceeded our initial 
expectations with both acquisitions being 
accretive in 2014 and enabling the pull‑ through 
of Petro‑ SIM into the upstream market space. 
FEESA was acquired in July 2014 and has been 
successfully integrated, with the two founders 
of that company now holding senior executive 
positions on KBC’s Operating Committee. 
Work continues, as planned, to ensure that 
the acquired company standardises on KBC’s 
product lifecycle management processes 
and quality assurance.
Of particular importance in the year was 
the seven‑ year contract with a major oil field 
services company for the licensing of KBC’s 
upstream full simulation portfolio including 
Multiflash, Maximus and Petro‑ SIM. This is the 
first significant sale combining the technology 
of our two recent upstream acquisitions with 
KBC’s heritage software and demonstrates 
the value of KBC’s integrated upstream 
technology strategy.
KBC’s traditional refining technology business 
continued to strengthen in 2014 with key 
contract awards in Asia, South America and 
the Middle East. Our Japanese market saw 
a marked reduction in Technology revenue 
in 2014 due to one unusually high contract 
award in 2013. The refinery reactor and process 
simulation technology, supported by energy 
simulation, forms a high value, rigorous 
picture of refinery wide profitability and, 
when delivered with KBC’s consulting 
services, is a world‑class solution.
KBC continues to look for value‑ adding 
acquisitions that will expand the Technology 
portfolio and contribute to revenue and 
profit growth.
Andrew Howell
Chief Executive Officer
17 March 2015
The Technology margin decreased from 34% 
in 2013 to 24% in 2014 due to much higher 
amortisation from the recent acquisitions and 
a focused investment in sales and marketing 
for Technology.
As part of the successful equity placing in 
June 2014, undertaken primarily to raise funds 
for acquiring technology assets, Norway’s 
Kongsberg Gruppen ASA acquired a 5% stake 
in KBC and has since engaged in an upstream 
technology and services alliance to add higher 
value solutions to its oil company clients 
and accelerate KBC’s penetration into this 
market. This alliance is seen as giving KBC 
an accelerated critical mass in upstream to 
position, sell and deliver significant expansion 
in upstream technology revenue.
Technology
ACHIEVEMENTS IN 2014
  Two major South American software contracts with greater than US$5m total contract value each
   A £3.3m contract with a European oil field services company
   Large software licence expansion projects in Thailand, Vietnam and China
   Large renewals and licence expansions in the Middle East
   New upstream licence agreements in Australasia
  Agreement signed with Flaretot Limited of London, UK, to market its flare system design 
and rating tool, integrated with Petro‑ SIM
Revenue
£21.0m
(2013: £17.9m)
30% 
Revenue due 
within 1 year 
(2013: 26%)
70% 
Revenue due in 
more than 1 year 
(2013: 74%)
£30.7m 
(2013: £25.5m)
Pipeline of contracted work
10
11
12
13
14 21.0
17.9
18.8
13.0
13.8 KBC Advanced Technologies plc 
Annual report 2014 10
OUR BUSINESS MODEL AND STRATEGY
   Focused market  
penetration
Focus on growth in the following markets:
 Technology 
Increase footprint in second tier independent 
refiners, convert more national oil company 
refiners and win new business with 
engineering, procurement, construction 
and management (“EPCM”) companies
 U p s t r e a m 
Integrate sales of Maximus, Multiflash 
and Petro‑ SIM, continue expansion in 
oil field services companies and launch 
upstream operational excellence and 
profit improvement programmes
 G ro w th m a r k e t s  
(Latin America, Asia, MENA) 
Invest in these key hotspot regions 
for Technology platform sales and 
business transformation projects
   Generate additional revenue 
streams through organic, 
alliance and acquisitive 
technology growth
Broaden and strengthen strategic 
partnerships and alliances
Enhance the third‑ party ecosystem for 
technology plug‑ ins to the KBC software 
platforms and develop an alliance culture
 Allow for expansion in scope 
of production solutions in the 
upstream market
Further develop existing alliance 
relationships and partner with key 
engineering companies and consultancies 
that have niche presence in upstream
Maximise hydrocarbon market 
reach through strategic acquisitions, 
partnerships and alliances
Corporate strategy to target new 
alliances in 2015/16
We are progressing
toward our goals
In late 2014 KBC launched a revised strategy, building on 
the success of the 201 1 to 2014 period, to grow revenues, further 
improve the Group’s profitability and drive shareholder value. It is 
clear, bold, aggressive and will transform KBC into a technology 
company supported by expert consulting.
All our activity supports or underpins the technology drive of the Group, 
with all Consulting offerings to be delivered on a technology platform, 
either our own or licensed from third parties and customised for resale. 
Productising Consulting knowledge will also enable KBC to improve both 
leverage from resources and increase the lower grade to higher grade ratio 
of employees, which in turn will contribute to the scalability and focus on 
delivered profit margin for the Consulting business. The Group also has a 
strong focus on working with selective alliance partners in the industry to 
deliver our technology and services deeper into our markets.
HIGH TECHNOLOGY  
OFFERING OF UNRIVALLED  
DEPTH AND QUALITY
    SOFTWARE TECHNOLOGY  
    
             
EXPERTISE        
 
  INTELLECTUAL PROPERTY         
       
T C KBC Advanced Technologies plc  
Annual report 2014 11
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
   Accelerate Technology 
revenues and increase 
Consulting margins
 Increase Technology sales 
Increase KBC’s revenue from Technology, 
productise Consulting knowledge and create 
an ecosystem of third‑party technology suppliers
 Increase Consulting margin to 10%+
Use technology to increase the leverage 
of resources, pursue larger, combined, 
business transformation projects and 
focus on key margin generating business
 Productise Consulting IP to 
commercialise as technology 
Use KBC operations and engineering 
knowledge to provide content for software 
systems, configure KBC and third‑party 
technology to scale consulting and increase 
leverage, and develop new software 
as a service with Consulting solutions
   Capital reinvestment and 
strong financial discipline
Tight cost control
2015 discretionary cost reduction programme, 
long‑ term reshaping of Consulting leverage 
and changes in back office systems 
integration to improve efficiencies
 P r o g r e s s i v e d i v id e n d
KBC is committed to a progressive 
dividend policy
 Increase profits and cash flow
The core focus of KBC is free cash flow 
from increased profit throughout the 
business with a key drive towards becoming 
a technology company with expert consulting
KBC’s growth strategy  
comprises six simple focus areas:
Progress was made on all six fronts in 2014 with 
a step up in the strategy execution planned for 
the current year.
Be a technology leader  
for engineering and operations software, increasing the 
high quality software revenue mix and anchoring 
all Consulting solutions to a technology platform
Position in our market sectors  
with differentiated advanced technology
Secure revenue, profit and cash flow  
from Consulting activity and the move into upstream Profit 
Improvement Programmes with key industry alliances that 
reduce client costs and increase their production
Modernise KBC’s own systems  
be operationally excellent ourselves with efficiency and scale
Ensure KBC is a great place to work  
that develops leaders with robust succession plans
Ensure a high quality image and brand  
that commands premium prices and repeat business 
throughout the market
1
2
3
4
5
6 KBC Advanced Technologies plc 
Annual report 2014 12
FINANCIAL REVIEW AND KEY PERFORMANCE INDICATORS
Results
Group revenue increased by 17% in 2014 to 
£76.0m (2013: £65.1m). Consulting revenue 
was up by 17% to £55.0m (2013: £47.2m). 
Technology revenue was also up 17% to 
£21.0m (2013: £17.9m) and included £9.0m 
of royalty, maintenance, support and upgrade 
revenue (2013: £7.8m).
Direct costs increased by 41% (£3.8m) to 
£13.1m in 2014 (2013: £9.3m), mainly due 
to an increase in subcontractor costs (£2.0m) 
and the provision of one‑ off software for a 
South American Consulting project. The use 
of subcontractors is dependent on the types 
of contract we work on during the year and 
can therefore fluctuate year on year. The 11% 
increase in staff and associate costs to £35.9m 
(2013: £32.4m) was proportionally less than 
the increase in revenue, reflecting average 
headcount 9% higher than 2013 and an increase 
in short‑term employee costs relating wholly 
to medical insurance and claims. Indirect 
operating costs increased by 22% to £14.1m 
(2013: £11.6m) reflecting increased investment 
in IT systems, people and sales training. 
In addition the costs incurred in acquiring 
FEESA of £0.4m (2013: £nil) are included here. 
Depreciation and amortisation charges were 
significantly higher at £5.7m (2013: £4.4m) 
due to increased amortisation relating to the 
acquisition of FEESA in mid‑2014, the Group’s 
continuing investment in intellectual property 
and contract‑based intangibles.
Profit before tax, adjusted for items which do 
not reflect underlying operations, rose by 13% 
to £9.5m (2013: £8.4m). This measure adjusts 
for development costs carried forward of £1.6m 
(2013: £1.3m), amortisation of development 
costs carried forward of £1.3m (2013: £1.1m), 
amortisation of acquisition intangibles of £2.1m 
(2013: £1.4m), share‑based payment charge 
of £0.7m (2013: £0.5m) and other items which 
do not reflect underlying operations.
Profit before tax was £6.7m (2013: £7.1m), 
a 6% reduction on 2013.
Tax
The tax charge of £2.6m (2013: £1.6m) 
is made up of a current tax expense of 
£3.1m and a deferred tax credit of £0.5m.
The current tax expense includes £2.5m 
(2013: £2.5m) of tax payable on overseas 
operations and £1.6m (2013: £1.0m) of 
withholding tax. £0.6m of the withholding tax 
is expected to be recovered against overseas 
tax payable by way of double tax relief. As in 
prior periods, the balance is not expected to 
be fully recoverable as a result of there being 
no creditable tax liability in the UK.
The 2014 tax charge is higher than last year, 
with an increase in the overall effective tax 
rate from 22% to 39%. Following revision 
of the Group’s transfer pricing framework 
last year, the 2013 effective tax rate benefited 
significantly from a one‑ off tax credit. The 2013 
effective tax rate before the prior period tax 
credit was 42% which would correspond to 
an overall reduction in the comparable group 
effective tax rate over the period.
The Group effective tax rate continues 
to benefit from enhanced tax deductions 
for qualifying research and development 
expenditure. The Group is continuing 
to review the location of its assets and 
resources globally to further reduce its 
effective tax rate in subsequent periods.
Earnings and dividends
The profit after tax for 2014 of £4.1m 
(2013: £5.5m) equates to basic earnings per 
share of 5.7p (2013: 9.5p) and diluted earnings 
per share of 5.5p in 2014 (2013: 9.2p). The 
decrease in basic earnings per share is a 
result of the share placing in June 2014 
and the prior period one‑ off tax credits.
2014 was a year of strong results for KBC. The Group continues to improve 
significantly and a more solid base has been established in the last 12 months 
from which to make further gains across all areas of the business.
Strong results
£9.5m
Adjusted profit before tax
10
11
12
13
14 9.5
8.4
3.7
4.9
3.6
Revenue
£76.0m
14 76.0
13 65.1
12 63.1
11 55.7
10 53.1 KBC Advanced Technologies plc  
Annual report 2014 13
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
The earnings per share calculated on the 
adjusted measure was 9.3p (2013: 9.5p). 
See note 5 for more details.
The Board has decided to continue the 
payment of dividends with a proposal to pay 
a dividend in respect of the 2014 financial year. 
Assuming it is approved by shareholders at 
the Annual General Meeting, the dividend will 
be paid on 22 July 2015 to shareholders on the 
register at close of business on 10 July 2015.
Carry forward of software 
development costs
During 2014 the Group incurred research 
and development costs of £3.7m (2013: £2.7m). 
This increase largely reflects additional research 
and development costs of Infochem and FEESA 
following the acquisition. Of this amount £1.6m 
(2013: £1.3m) related to development 
expenditure for the Group’s software suite 
and has been carried forward as an intangible 
asset to be amortised against expected future 
sales. The balance was charged directly to 
staff and associate costs and direct costs 
in the Income statement. The amortisation 
of previously capitalised software development 
costs amounted to £1.3m (2013: £1.1m).
Net cash and working capital
Net cash at 31 December 2014 was £11.0m 
(2013: £6.9m). The increase is due to the 
addition of the net placing funds (£23.1m), 
offset by the acquisition of FEESA (£10.0m) 
and an increase in working capital requirements. 
At the year end the Group had no outstanding 
bank loans (2013: £3.0m).
9.4%
Operating margin
10
11
12
13
14 9.4
11.4
6.1
9.0
7.1
5.7p
Earnings per share
10
11
12
13
14 5.7
9.5
(2.9)
5.9
4.0
Trade and other receivables increased 
during the year from £23.2m to £42.3m. 
The increase in trade receivables of £5.3m 
to £15.0m reflects a timing difference on 
the receipt of cash. This had substantially 
reduced by the end of January 2015, when 
trade receivables had fallen to £9.2m and 
net cash had increased to £15.0m. Amounts 
recoverable under contracts increased 
by £13.8m, reflecting higher Technology 
accrued revenue of £6.1m and higher 
Consulting amounts recoverable of £7.7m. 
This is expected to be billed in the first 
half of 2015. Trade and other payables also 
increased during the year from £12.2m 
to £17.5m due largely to a significant 
multi‑ year contract.
Going concern
The Group’s financial statements are prepared 
on a going concern basis. The Directors are 
satisfied that the Group has sufficient resources 
and borrowing facilities to meet its requirements 
for a period of at least 12 months from the date 
of this statement.
Andrew Howell
Chief Executive Officer
Andrew Hebb
Interim Chief Financial Officer
17 March 2015 KBC Advanced Technologies plc 
Annual report 2014 14
KBC recognises the importance of identifying and assessing our 
principal risks and uncertainties. We have set out below the key risks 
with the main systems and processes that are in place to manage 
and mitigate these risks.
Managing risk
1. Foreign currencies
Most transactions continue to be in US dollars, 
euro or sterling. 
The proportion of revenue in each currency was:
2014 2013
US dollars 79% 81%
Euro 7% 8%
Sterling 7% 6%
Other 7% 5%
Mitigation 
The Group’s policy, where possible, is to sign 
contracts that are denominated in their functional 
currency (primarily US dollars or sterling) and 
to match the currency to which expenses have 
been incurred. The Group has a number of overseas 
subsidiaries and branches whose revenues and 
costs are denominated in currencies other than 
sterling, the most significant of which are in the 
USA. Where appropriate the Group considers 
hedging against the foreign currency translation 
exposure arising on their results.
2. Liquidity
Client payment terms vary from contract to contract 
and can involve extended periods of time before 
invoices are raised and cash flow can be irregular. 
In addition, cash is sometimes received in countries 
where exchange control regulations delay the Group’s 
ability to transfer the cash outside those countries.
Mitigation 
At 31 December 2014 the Group held net 
cash balances of £11.0m compared £6.9m as 
at 31 December 2013. Cash balances in excess 
of immediate needs are placed on short‑ term 
deposit in the money markets.
During the year the Group restructured its financing 
facilities by fully repaying the outstanding balance 
on a bank loan (2013: £3.0m), terminating a three 
year revolving credit facility (2013: £2.0m) and 
increasing the Group’s overdraft facility to £3.5m 
(2013: £1.5m). The overdraft facility is available to 
the Group for use in managing the timing of cash 
flow in different countries and currencies.
Interest charges on the Group’s overdraft facility 
are linked to the LIBOR rate appropriate to the 
duration and currency of any drawdown.
3. Credit
The main credit risk faced is attributable to trade 
receivables. As the majority of the Group’s clients 
are state‑ owned or very large oil companies, the risk 
of non‑ payment tends to be less of the traditional 
credit nature and more related to client satisfaction 
and/or trade sanctions.
Mitigation 
Wherever possible, early cash flow is incorporated 
into contract terms. Provision is made for doubtful 
receivables when there are circumstances which, 
based on experience, are evidence of a likely 
reduction in the recoverability of the receivable.
4. Economic and social
Changes in the market sectors, including oil price, 
energy demand, M&A activity and the availability 
to our clients of skilled staff, can all impact upon 
the volume of business available to KBC.
Mitigation 
Our range of services has expanded over the years 
and continues to evolve so that we are able to 
offer appropriate solutions to our clients in varying 
circumstances. Contingency plans are prepared in 
case the market for the Group’s services deteriorates.
5. Political and environmental
Some of KBC’s work and proposed work is 
in regions subject to political changes and 
environmental disasters which could disrupt the 
markets or affect our ability to execute work for 
clients and/or collect payment for work performed.
Mitigation 
Appropriate payment terms are negotiated 
whenever possible to ensure KBC’s exposure is 
minimised and the nature of our contracts requires 
us to work in a flexible manner. Resourcing is 
managed globally which enables us to adapt and 
redeploy the workforce as and when necessary. 
We minimise fixed overhead in countries at risk. 
Security consultants are retained for advice 
on potential risk and we avoid working 
in very high risk or hostile areas.
6. Market risks
There is a risk of slow adoption of upstream 
technology by oil and gas companies. It is a normal 
risk for all consulting firms, including KBC, that their 
services are discretionary and are subject to change 
and cancellation by clients at short notice.
Mitigation 
We are conservative in our forecasting of 
Technology revenues from the upstream sector 
and focus our sales efforts on the large oil field 
service companies to endorse KBC’s products 
and introduce our software to the upstream industry. 
Our strategy includes recruitment of personnel 
with upstream experience.
Our mix of manpower includes use of associates 
for certain skills and to retain some flexibility in the 
staff numbers. The compensation structure at senior 
levels now includes a higher proportion of variable 
pay. In addition, we continue to consider different 
scenarios when forecasting resourcing needs of 
the business.
7. Loss of intellectual property (“IP”)
Theft or misuse of the Group’s IP is an ongoing risk.
Mitigation 
Strict contractual terms ensure that ownership of IP 
is retained by the Group. We continue to innovate 
in both software and services as well as protecting 
software by anti‑ piracy measures.
8.  Systems failure, internal fraud, 
financial mismanagement
KBC is heavily dependent on internal IT and 
management systems. Any organisation needs 
to ensure it protects itself against the risk 
of fraudulent activity and mismanagement 
of its finances.
Mitigation 
KBC has strong, well‑ established financial and IT 
controls, as well as rigorous policies and procedures 
for IT backup and recovery processes. We continue 
to innovate and improve these areas through our 
internal Operational Excellence programme.
PRINCIPAL RISKS AND RISK MANAGEMENT Governance
16 Board of Directors
17 Executive Committee and Operating Committee
18 Introduction to governance
19 Corporate governance statement
22 Remuneration Committee report
26 Directors’ report BOARD OF DIRECTORS
A dedicated 
Board
2. Andrew Howell
Chief Executive Officer
Skills and experience:
Andrew was appointed as Chief Executive Officer 
on 1 January 2015. He previously held the role of 
Managing Director of Technology, managing the 
Technology side of KBC’s business including 
technology development, customer support and 
strategy development. Prior to joining KBC Andrew 
worked for Schlumberger, holding senior management 
positions related to oil and gas development and 
production, and for Aspen Technology (Hyprotech) 
where he managed technology development for 
the oil and gas industry. He started his process 
engineering career with BP Exploration and has a 
degree in Chemical Engineering from the University 
of Cambridge. Andrew is a member of the Executive 
Committee and was first appointed as a Director 
of KBC in April 2014.
3. Kevin Smith
Chief Commercial Officer
Skills and experience:
Kevin was appointed as Chief Commercial Officer 
on 1 January 2015. He previously held the role of 
Managing Partner with responsibility for overseeing 
KBC’s consulting business, including all aspects 
of related business development, project execution 
and innovation. Prior to that he was Executive Vice 
President, responsible for KBC’s Organisational 
Consulting business which has grown since its 
inception with the acquisition of TTS Performance 
Systems Inc where he was Vice President of 
Operations at the time of acquisition by KBC in 
2006. He previously worked for EQE International 
Inc, an ABS Group company, and Kimberly Clark 
Corp, with whom he holds five patents. He has 
a BS in Chemical Engineering from the University 
of Tennesse, Knoxville. Kevin is a member of the 
Executive Committee and was first appointed 
as a Director in April 2014.
4. Paul Taylor
Deputy Chairman and Independent 
Non-Executive Director
Skills and experience:
Paul is a Non‑ Executive Director and Chairman of the 
Audit Committees of Anite plc, Ubisense Group plc, 
Escher Group Holdings plc and Digital Barriers plc. 
From 2001 to 2011 he was Group Finance Director with 
AVEVA Group plc. Paul is a Fellow of the Association 
of Chartered Certified Accountants. He was appointed 
a Non‑ Executive Director of KBC in May 2013 and 
Deputy Chairman in October 2013. He is Chairman 
of the Audit Committee and a member of the 
Nomination and Remuneration Committees. 
He is also the Senior Independent Director.
5. Paul McCloskey
Independent Non-Executive Director
Skills and experience:
Paul worked for Husky Energy, one of Canada’s 
largest integrated energy companies, between 
2009 and 2013 where he ran the Atlantic Region 
business unit, being responsible for oil exploration, 
development and production operations. A graduate 
in Chemical Engineering, Paul previously held 
management positions in Hess, a leading global 
independent energy company primarily engaged 
in the exploration and production of crude oil and 
natural gas, and other organisations in the oil and 
gas industry. He commenced his career with Conoco. 
Paul was appointed a Non‑ Executive Director of 
KBC in February 2014. He is a member of the 
Audit, Nomination and Remuneration Committees.
6. Oliver Scott
Non-Executive Director
Skills and experience:
Oliver is a co‑ founder and partner of Kestrel 
Partners LLP, where he acts as a fund manager and 
is also responsible for structuring the partnership’s 
investment management activities. He was formerly 
a Director of corporate finance at KBC Peel Hunt, 
stockbrokers and financial advisors, where he 
specialised in advising smaller quoted and unquoted 
companies. He is currently Chairman (Non‑ Executive) 
of both ClearSpeed Technology Ltd and 
ZF Acquisitions Ltd. Oliver has a degree in Business 
Economics and is a member of the Securities 
and Investment Institute. He was appointed a 
Non‑ Executive Director of KBC in December 2010. 
He is Chairman of the Nomination and Remuneration 
Committees and a member of the Audit Committee.
N R A
N R A
R N A
The Board recognises the importance of high standards of corporate 
governance and has ultimate responsibility for the management 
of the Group. There are a number of Board committees to which the 
Board has delegated certain key matters.
R N A
1. Ian Godden
Chairman
Skills and experience:
Ian is a Non‑ Executive Director of Bristows Group 
Inc (USA) and Chairman and CEO of Glenmore 
Energy Inc (USA). He was until recently Chairman 
of Farnborough International, the company responsible 
for the Farnborough Airshow and other international 
aerospace, defence and security events. After gaining 
experience in the worldwide oil industry early in his 
career, Ian focused on strategy consulting in the 
USA and Europe. During the 1990s he was UK 
Managing Partner and a European Board member 
of Booz Allen and Hamilton. From 2000 to 2004, 
he was UK Managing Partner of Roland Berger 
Strategy Consultants and from 2007‑ 2011 he was 
Chairman of ADS, the trade organisation of the 
UK aerospace, defence and security industries. 
Ian has a BSc Engineering degree from Edinburgh 
University and an MBA from Stanford University, 
California. He is a Fellow of the Royal Aeronautical 
Society. Ian was appointed a Non‑ Executive 
Director of KBC in July 2008 and became 
Chairman in January 2011. He acted as Executive 
Chairman in 2013 and 2014 and returned to being 
Non‑ Executive Chairman on 1 January 2015. 
He is a member of the Audit, Nomination and 
Remuneration Committees.
We take pride in working collaboratively and innovatively 
with our clients worldwide to drive bottom-line improvements 
in business performance and operational skills. ”
16
KBC Advanced Technologies plc 
Annual report 2014
1 KBC Advanced Technologies plc  
Annual report 2014 17
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
KEY
Audit Committee
Remuneration Committee
Nomination Committee
A
R
N
Chairman
Member
Andrew Howell Chief Executive Officer 
See biography on page 16
Kevin Smith Chief Commercial Officer 
See biography on page 16
Michael Aylott Chief Technology Officer
Mike was appointed as Chief Technology Officer 
on 1 January 2015, having most recently held the 
post of Senior Vice President, R&D. Mike’s work 
with KBC has always been in process simulation and 
engineering software development, starting with the 
development of Petrofine in the mid‑ 1980s and then 
both developing and managing R&D over a broad 
range of technology and application developments 
including Petro‑ SIM and related products. Mike 
holds a Masters in Chemical Engineering from 
Cambridge and learnt his trade while a research 
associate at Edinburgh University and ICI working 
on dynamic process simulation.
Andrew Hebb Interim Chief Financial Officer
Andrew has been a professional Interim CFO 
since 2009 for a number of companies in both 
the professional services and technology sectors. 
Prior to that, as Chief Financial Officer, he helped 
build Hedra plc into a major public sector consulting 
business which was sold to Mouchel in 2008. 
Andrew has also held Chief Financial Officer 
and operational roles in a number of major UK 
companies including PWC Consulting and Burton 
group. He is a Fellow of the Chartered Institute 
of Management Accountants.
Janet Ireland Company Secretary
Janet joined KBC in 1985 and was appointed 
Company Secretary in June 2000. She is responsible 
for administration of board affairs as well as legal, 
statutory and compliance matters. She previously 
held administrative positions in the John S Latsis 
Group and at Pritchard‑ Rhodes Ltd. Janet is a 
Fellow of the Institute of Chartered Secretaries 
and Administrators.
Anna McLean Global HR Executive
Anna is responsible for leading the development 
and delivery of the HR strategy to attract, retain and 
develop KBC’s world‑ class talent pool. With over 
15 years’ HR experience in the consulting industry, 
Anna joined KBC in September 2013. Her previous 
experience includes delivery of HR services for the 
UK and Singapore practices of an American consulting 
business followed by seven years with Ernst & Young 
where she ultimately led the UK & Ireland Advisory 
Services HR function through its significant growth 
during her tenure. Anna has a degree in European 
Community Studies and is a member of the 
Chartered Institute of Personnel and Development.
Ramón Loureiro Senior Partner
Ramón is responsible for mentoring the Technical 
Partners and future Consulting Partners of the 
company, as well as ensuring the core process and 
technical skills of KBC are enhanced and developed. 
A chemical engineer with over 40 years of experience, 
Ramón started his career at Exxon Research and 
Engineering Co in the USA, where he held various 
technical roles. He joined KBC in 1986 and helped 
conceive, develop and lead many Profit Improvement 
Programmes worldwide. He has previously led the 
Research and Development group, and the regional 
business development and operations groups of 
KBC. Ramón holds a BS in Chemical Engineering.
EXECUTIVE COMMITTEE 
The KBC Executive Committee focuses on the long‑ term vision and strategy 
for the Company, as well as management of the overall results for the business, 
directing the Operating Committee and managing corporate activities.
OPERATING COMMITTEE 
The KBC Operating Committee provides leadership and oversight for day‑ to‑ day operational performance 
and drives the implementation of the short‑ term business strategy to achieve the annual plan and the first 
steps in the foundation of the longer‑ term strategy. Members of the Operating Committee are:
Bill Tetreault
Managing Partner, Global Operations
Jonathan Allwood
Managing Partner, Consulting Solutions
Martin Watson
Managing Director, Software and Marketing
David Parsons
Senior Vice President, Global Sales
Neil Hawkes
Senior Vice President, Research and Development
Jason Durst
Senior Vice President, Operational Excellence
Anna McLean
Global HR Executive
James Jordan
Group Financial Controller
2
3
4
5
6 KBC Advanced Technologies plc 
Annual report 2014 18
We have seen a number of changes announced 
and delivered during the year relating to the 
structure of the Board. These are covered 
in more detail elsewhere but key to good 
governance is the leadership demonstrated 
by the Board and as such the appointment 
of Andrew Howell as CEO, Ian Godden 
returning to the role of Non Executive Chairman, 
the appointments of Paul McCloskey as an 
Independent Non Executive Director and 
Kevin Smith as an Executive Director not only 
add real commercial strength to the Board’s 
activities but also embrace the ongoing 
improvements in our governance structures. 
We are hoping to conclude the search for 
a new Chief Financial Officer shortly.
The Company continued to review its corporate 
governance framework which, taking account 
of both the size and nature of the business 
and its specific circumstances, sets the standards 
aimed to meet the general provisions of the 
“Corporate Governance Code for Small and 
Mid-size Quoted Companies”, published 
in 2013 by the Quoted Companies Alliance 
(the “QCA Corporate Governance Code”). 
INTRODUCTION TO GOVERNANCE
Complying with corporate 
governance best practice
The Board continues to recognise the 
importance of good governance and its role 
in ensuring that the business is well managed. 
The framework in which we operate and 
continue to develop is one that is aimed at 
dealing with the complexities of our business 
and acknowledging our size but also capable 
of adding value to the business as we grow.
BOARD COMPOSITION
AS AT 17 MARCH 2015
THE ROLE OF THE BOARD
The QCA Corporate Governance Code 
provides that the Board should be balanced 
between executive and non-executive 
directors and should have at least two 
independent non-executive directors.
Paul Taylor
Deputy Chairman and 
Senior Independent Director
Chairman (1)
Executive Directors (2)
Non-Executive Directors (3)  
two of which are independent
  ROLE OF THE CHAIRMAN
  The Chairman provides leadership to 
the Board of Directors and ensures that 
the Board works cohesively to set the 
Group’s strategy and direction. He ensures 
that meetings of the Board address the 
appropriate issues for the Group and 
focus on key tasks. The Chairman is 
the direct liaison between the Board 
and the Chief Executive Officer. He is 
also responsible for ensuring effective 
communication with shareholders and 
is the principal representative of the 
Company externally.
  ROLE OF THE EXECUTIVE DIRECTORS
   The Executive Directors, led by the 
Chief Executive Officer, provide input 
to the Board in setting the strategic 
direction of the Group, implement the 
Board’s approved strategy and ensure 
adequate resources to achieve effective 
management of the Group’s operations.
  ROLE OF THE  
NON-EXECUTIVE DIRECTORS
  The Non-Executive Directors provide 
objective input and guidance to the 
setting of strategy and management 
of the business, challenging and 
scrutinising management’s performance, 
ensuring that appropriate controls and 
risk management systems are in place, 
determining remuneration policies for 
executive directors and considering board 
composition and succession planning.
This remains the standard at which we aim 
to perform at all levels within the business.
The Board sets KBC’s overall strategic direction, 
reviews management performance and ensures 
that the Group has the right level of resources 
in place to support these. The Board is satisfied 
that the necessary controls and resources are 
in place to ensure that these responsibilities 
are addressed.
Operational management is delegated 
to the Executive Committee and Operating 
Committee to cover such matters as sales, 
project delivery, customer relationships and 
investment opportunities. The membership 
provides a broad mix of disciplines, industry 
experience and geographical coverage.
Paul Taylor
Deputy Chairman and 
Senior Independent Director
17 March 2015
6 
BOARD  
MEMBERS KBC Advanced Technologies plc  
Annual report 2014 19
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
The Chairman ensures that all Directors, in 
the furtherance of their duties, have access 
to independent professional advice as required 
and at the Company’s expense. All Directors 
are encouraged to bring independent judgement 
to bear on issues of strategy, performance, 
resources (including key appointments) and 
standards of conduct. The Non-Executive 
Directors have a particular responsibility to 
ensure that the strategies proposed by the 
Executive Directors are fully considered.
All Directors have access to the advice 
and services of the Company Secretary 
who is responsible for ensuring that Board 
procedures are followed and that the Board 
complies with applicable rules and regulations. 
The appointment and removal of the Company 
Secretary is a matter for the Board as a whole.
The following Committees report to the 
main Board, thereby enabling the main Board 
to meet its responsibilities. The terms of 
reference of the Nomination, Remuneration 
and Audit Committees are available on the 
Group’s website.
NOMINATION COMMITTEE
During 2014 the Company’s Nomination 
Committee was, and continues to be, chaired 
by Oliver Scott. The Nomination Committee 
consists of the Non-Executive Directors 
and the Chairman of the Board.
The Nomination Committee meets as required 
and is responsible for proposing candidates 
for appointment to the Board and the structure 
and composition of the Board as a whole. In 
appropriate cases recruitment consultants are 
used to assist the process. The Nomination 
Committee met four times during 2014, 
excluding ad hoc meetings.
CORPORATE GOVERNANCE STATEMENT
The workings of the Board 
and its Committees
The Board
At the date of this report the Board comprises 
the Chairman, two Executive Directors, and 
three Non-Executive Directors. Throughout 
2013 the current Chairman held the role of 
Executive Chairman. The Chief Financial Officer 
resigned from the Board as of 6 April 2014 
and two additional executive directors were 
appointed at the end of April 2014. There 
were two non-executive directors up until 
24 February 2014 when a third was appointed. 
Two of the Non-Executive Directors, Paul Taylor 
and Paul McCloskey, are considered 
independent. Paul Taylor is also Deputy 
Chairman and the Senior Independent 
Director. The details of all Directors are 
set out on page 16.
The Board meets at least six times per year 
to deal with matters specifically reserved for 
its decision. These matters include agreeing 
and monitoring strategic plans and financial 
targets, major decisions on resource, overseeing 
management of the Company in the interest 
of shareholders and ensuring processes are 
in place to manage major risks, treasury matters, 
changes in accounting policies, corporate 
governance issues, litigation and reporting 
to shareholders. The Executive Committee, 
which includes the two Executive Directors, 
focuses on implementation of the Board’s 
approved strategy and oversees day-to-day 
operating decisions to ensure proper 
management of the Company’s business.
During 2014 the Board met eight times, 
excluding ad hoc meetings, to deal with 
procedural and other matters. Attendance at 
Board and non-executive director subcommittee 
meetings is recorded in the table on page 20.
To enable the Board to discharge its duties 
all Directors receive appropriate and timely 
information. Briefing papers are distributed 
by the Company Secretary to all Directors 
in advance of Board meetings. The Chairman 
ensures that all Directors are properly briefed 
on issues arising at Board meetings.
All Directors are subject to election by the 
shareholders at the first Annual General Meeting 
following their appointment and to further 
re-election thereafter by the shareholders 
at least every three years.
REMUNERATION COMMITTEE
During 2014 the Company’s Remuneration 
Committee was, and continues to be, chaired 
by Oliver Scott. The Remuneration Committee 
consists of the Non-Executive Directors and the 
Chairman of the Board.
The Remuneration Committee meets 
at least twice a year, with the Executive 
Directors in attendance by invitation as 
appropriate, to determine the remuneration 
of the Executive Directors and oversee 
remuneration issues for senior executives 
of the Group. The Remuneration Committee 
is responsible for determining policy, within 
agreed terms of reference, of the Group’s 
framework of executive remuneration and 
its cost. The Remuneration Committee sets 
the contract terms, remuneration and other 
benefits for Executive Directors, including 
performance related bonus plans, pension 
rights and compensation payments. Further 
details of the Group’s policies on remuneration, 
service contracts and compensation payments 
are given in the Remuneration Committee 
report on pages 22 to 25. The Remuneration 
Committee met four times during 2014, 
excluding ad hoc meetings.
The Board of Directors is accountable to the Company’s 
shareholders for good corporate governance. This statement 
describes how this has been applied.
1 3
CHAIRMAN MEMBERS
1 3
CHAIRMAN MEMBERS KBC Advanced Technologies plc 
Annual report 2014 20
CORPORATE GOVERNANCE STATEMENT CONTINUED
The workings of the Board 
and its Committees continued
The Board continued
AUDIT COMMITTEE
During 2014 the Audit Committee was 
and continues to be, chaired by Paul Taylor. 
The Audit Committee comprises the 
Non-Executive Directors and the 
Chairman of the Board.
The Audit Committee, which meets at least 
twice a year, provides a forum for reporting 
by the Group’s external auditors. Meetings 
are also attended, by invitation, by the 
Executive Directors.
The Audit Committee follows written terms 
of reference and is responsible for reviewing 
a wide range of matters including adequacy 
of the Group’s accounting systems and control 
environment, the integrity of the Group’s 
financial statements and its reporting 
procedures to shareholders.
The Audit Committee advises the Board 
on the appointment of external auditors 
and their remuneration and discusses with 
the external auditors the nature, scope and 
results of the audit. The Audit Committee 
keeps under review the cost effectiveness, 
independence and objectivity of the external 
auditors, including the level of non-audit fees 
charged. Auditor objectivity and independence 
is safeguarded by ensuring that non-audit 
services provided by the external auditors 
are kept to a minimum and are restricted 
to matters concerning tax compliance 
and associated advisory services.
The Audit Committee also monitors the 
effectiveness of the Group’s internal controls 
and risk management systems. It considers 
annually whether it is appropriate to introduce 
a separate internal audit function. To date 
it has concluded that this is not necessary 
given the structure of the Group’s accounting 
function and the size of the Group.
The Audit Committee met twice during 2014, 
excluding ad hoc meetings.
EXECUTIVE COMMITTEE
The Executive Committee handles 
implementation of the Group’s strategy on 
behalf of the Board. During 2014 operations 
of the Group were managed through two 
separate business lines, Consulting and 
Technology, with an Operating Board 
(comprising the Chairman of the Board, 
the leaders of the two business lines and 
the Senior Partner) having oversight of 
strategic and operational activities. At the 
end of the year a reorganisation took place 
to combine management of the Consulting 
and Technology businesses on a global basis. 
The Executive Committee comprises 
the Executive Directors and other senior 
managers. It focuses on the long-term 
vision and strategy for the Company. Primary 
responsibilities include the oversight of the 
development, maintenance and implementation 
of the strategy, management of the overall 
financial results for the business, directing 
the Operating Committee and managing 
shareholder, corporate governance and growth 
activities. Members of the Executive Committee 
are shown on page 17.
OPERATING COMMITTEE
The Operating Committee, formed at the end 
of 2014, comprises key operational managers 
from within the Group, providing leadership 
and oversight for the day-to-day operational 
performance of the business, and drives the 
implementation of the short-term business 
strategy to achieve the annual plan and the 
first steps in the foundation of the longer-term 
strategy. The Operating Committee reports 
to the Executive Committee with a primary 
interface through the Chief Commercial 
Officer. Members of the Operating 
Committee are shown on page 17.
ATTENDANCE AT MEETINGS OF DIRECTORS
Board
meetings
Audit
Committee
meetings
Nomination
Committee
meetings
Remuneration
Committee
meetings
Number of scheduled meetings 8 2 4 4
I Godden 7 2 4 3
P McCloskey 7 2 3 3
O Scott 8 2 4 4
P Taylor 8 2 4 4
C Brown (to 6 April 2014) 2 — — —
A Howell (from 28 April 2014) 6 — — —
K Smith (from 28 April 2014) 6 — — —
1 3
CHAIRMAN MEMBERS KBC Advanced Technologies plc  
Annual report 2014 21
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
KBC values and maintains an active 
dialogue with its shareholders 
through a programme of 
investor relations.”
Performance evaluation
Performance of the Board and Non-Executive 
Director Committees of the Board is reviewed 
collectively by all the Directors. Except 
as set out below, individual performance 
evaluation of each Director is carried out 
by the Chairman or the Senior Independent 
Director and the results are reviewed with the 
other Directors. The Chairman is appraised by 
the Non-Executive Directors, led by the 
Senior Independent Director.
An evaluation of the performance during 2014 
of the Board as a whole, the Committees and 
individual Directors commenced in early 2015. 
The Senior Independent Director reviewed 
these matters with each Director individually 
and the Chairman conducted a review with the 
Senior Independent Director. The conclusions 
of the overall assessments and actions 
required are reviewed by all the Directors.
Internal control
The Board has overall responsibility for the 
Group’s system of internal control. The system 
of internal control is designed to manage rather 
than eliminate the risk of failure to achieve 
business objectives. In pursuing these 
objectives, internal controls can only provide 
reasonable and not absolute assurance 
against material misstatement or loss.
A process was in place during the first 
part of the year for identifying, evaluating 
and managing the significant risks faced 
by the Group. In the middle of the year the 
Chairman conducted a thorough review of the 
current risks faced by the business and revised 
processes and procedures are currently 
being put in place. Internal controls and risk 
management are regularly reviewed by 
the Audit Committee.
The Board performs a regular review of the 
effectiveness of the system of internal control 
and takes actions necessary to remedy any 
significant failings or weaknesses identified in 
the review. The processes used by the Board 
to review the effectiveness of the system 
of internal control include the following:
 » the Audit Committee reviews the 
effectiveness of the Group’s risk 
management process and significant 
risk issues are referred to the Board 
for consideration;
 » the Chairman of the Audit Committee 
reports the results of Audit Committee 
meetings to the Board and the Board 
receives minutes of all such meetings;
 » the Audit Committee maintains close 
contact with the Chief Financial Officer 
and periodically instigates investigations 
into the effectiveness and other aspects 
of internal control;
 » the Board receives the results of 
self-assessment reports from senior 
managers covering the risks faced by 
the Group, together with compensating 
internal controls. A record of such risks 
is maintained and reviewed on a regular 
basis, with risk weightings assigned to 
ensure priority is given to the major risks 
identified by the Group; and
 » the Board receives regular reports 
concerning specific contract risks faced 
by the Group.
Principal risks facing the business are 
described on page 14.
Relations with shareholders
KBC values and maintains an active dialogue 
with its shareholders through a programme 
of investor relations. The Directors meet 
frequently with representatives of institutional 
shareholders to discuss their views and review 
corporate governance issues. Feedback from 
these meetings is discussed at meetings of the 
Directors. Major shareholders are consulted 
on significant issues concerning the Company’s 
corporate governance. Information is also made 
available to shareholders via the Annual and 
Half Year Reports and the Group’s website 
(www.kbcat.com).
The Annual General Meeting provides 
an opportunity to communicate with private 
and institutional shareholders and the 
Company welcomes their participation. 
The Chairman ensures that members of 
the Audit, Remuneration and Nomination 
Committees are available at Annual General 
Meetings to answer questions. Details of 
resolutions to be proposed at the Annual 
General Meeting in 2015 can be found in 
the Notice of Meeting at page 62.
By order of the Board
Janet Ireland
Company Secretary
17 March 2015 KBC Advanced Technologies plc 
Annual report 2014 22
REMUNERATION COMMITTEE REPORT
The Group’s policy is to attract, retain and motivate high calibre 
executives capable of achieving the Group’s objectives and to offer 
a remuneration package that is competitive within the sector in 
which the Group operates.
Details of each Director’s remuneration 
are set out on page 25.
Remuneration Committee composition, 
responsibilities and operation
During 2014 the Company’s Remuneration 
Committee (the “Committee”) consisted 
of the Non-Executive Directors (Oliver Scott, 
who chaired the Committee, Paul Taylor 
and Paul McCloskey from 24 February 2014) 
and the Chairman of the Board (Ian Godden). 
Paul Taylor and Paul McCloskey are 
considered independent.
The Executive Directors have been invited 
as necessary to attend meetings other 
than when their own remuneration has 
been considered.
The Committee determines the policy, within 
agreed terms of reference, of the overall 
remuneration package for Executive Directors 
and oversees remuneration issues for other 
senior executives. The Group and the 
Committee seek advice from time to time 
from external remuneration consultants. 
The Committee was advised on remuneration 
related matters by MM&K in 2014 and 2013. 
MM&K provides administration services to 
the Company in connection with operation 
of the Group’s share incentive plans. It did 
not provide any other services to the 
Company during 2014 or 2013.
Remuneration policy
The Group’s policy is to attract, retain and 
motivate high calibre executives capable of 
achieving the Group’s objectives and to offer 
a remuneration package (consisting of basic 
salary, benefits, incentive share schemes, 
pension and a performance related bonus) 
that is competitive within the sector in which 
the Group operates.
The details of individual components of the 
remuneration package and service contracts 
are discussed below.
Basic salary and benefits
The basic salaries and benefits of all employees 
are reviewed every year. In reviewing salaries, 
consideration is given to personal performance, 
the Group’s overall performance and external 
comparative information. Benefits principally 
relate to pensions, car allowances, life 
assurance, disability insurance and private 
health care. 
Statement of consideration of conditions 
elsewhere in the Group
The Committee takes into account the pay 
and employment conditions of all employees in 
the Group when considering changes to salaries 
and other benefits for Directors. The Committee 
is kept aware of changes in remuneration 
policy for other senior executives in the 
Group and these are taken into consideration, 
consistent with the Group’s general aim 
of seeking to reward all employees fairly 
according to the nature of their role, their 
performance and market forces.
Incentivisation of  
Executive Directors and senior staff
In 2013 the Committee discontinued the 
previous cash and share incentivisation plans 
and replaced them with a new plan, with 
the objective of aligning the interests of the 
Executive Directors and senior managers 
more closely with those of shareholders over 
the medium to long term. Further details are 
set out below.
Performance bonuses
A performance bonus is payable to Executive 
Directors and senior staff on the achievement 
of performance conditions established by the 
Remuneration Committee. The performance 
conditions include the Group’s financial 
performance and market expectations, 
as well as individual performance.
Following the adoption in 2013 of a new 
incentivisation plan for Executive Directors and 
senior staff, cash bonuses are no longer capped, 
but are at the discretion of the Committee.
Nature of
agreement
Effective date of
agreement
Unexpired
term at
31 December
2014
Notice
period
I Godden, Chairman Service agreement 18 February 2014
(1)
— 3 months
P McCloskey, Non-Executive Director
(2)
Contract for services 24 February 2014 2.2 years 3 months
O Scott, Non-Executive Director Contract for services 1 December 2013 1.9 years 3 months
P Taylor, Non-Executive Director Contract for services 24 May 2013 1.4 years 3 months
C Brown, Executive Director
(3)
Service agreement 19 September 2012 n/a n/a
A Howell, Executive Director
(4)
Service agreement 28 April 2014 — 6 months
K Smith, Executive Director
(4)
Service agreement 28 April 2014 — 6 months
(1) Replaced earlier agreement
(2) Appointed 24 February 2014
(3)  Resigned 6 April 2014
(4)  Appointed 28 April 2014
DIRECTORS’ CONTRACTS KBC Advanced Technologies plc  
Annual report 2014 23
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
Pensions
The Group operates defined contribution 
pension schemes. Contributions are calculated 
as a percentage of basic salary.
The Chairman and Non-Executive Directors 
are not eligible for membership of the Group’s 
pension schemes.
Fees
The Committee sets the fees of the Chairman. 
The fees for the Non-Executive Directors 
are determined by the Executive Directors. 
Neither the Non-Executive Directors nor the 
Chairman are involved in any discussions or 
decisions about their own remuneration.
Directors’ contracts
Details of the contracts of Directors who 
served during the year are shown on page 22.
Directors’ interests in shares
The beneficial interests of the Directors in 
the Ordinary share capital of the Company 
are shown on page 26.
Share options and incentive plans
The Group has operated share option plans 
and a Long Term Incentive Plan, as described 
on the following pages.
Share options outstanding over new shares at 
31 December 2014 are summarised in note 25 
to the financial statements. These are included 
in the details of options held by the Directors 
during the year shown on page 24.
Long Term Incentive Plan 2006 
(“LTIP 2006”)
The LTIP 2006 was closed in 2013 and 
replaced with the Discretionary Share Option 
Plan 2013. No awards have been made under 
the LTIP 2006 since 2012.
In summary, two types of award were 
granted under the LTIP 2006:
1.  Awards of shares in the Company (“Matching 
Shares”), linked to and ‘‘matching’’ on a 
maximum 1:1 basis (gross  of tax) shares 
acquired by participants following compulsory 
or voluntary investment of an amount 
equivalent to a defined proportion of their 
annual bonus in shares (‘‘Deferred Shares’’). 
2.  Awards of Performance Shares to Executive 
Directors and selected senior managers, 
which ordinarily vest three years after the 
date of the award, subject to continued 
employment of the individual concerned 
within the Group and to the satisfaction 
of challenging performance conditions.
Awards under the LTIP 2006 are included in 
the details of options held by the Directors 
during the year and are shown on page 24.
Discretionary Share Option Plan 2013 
(“DSOP 2013”)
The DSOP 2013 was introduced in June 2013 
and is due to last five years. Share options of 
5% of the Company’s issued share capital 
were granted within the first 12 months of 
the DSOP 2013. Subsequent grants of share 
options up to 2% of the Company’s then-issued 
share capital have been and will be made in 
each of the four following 12 month periods. 
Under the DSOP 2013 share options awarded 
to participants are split between “Career 
Options” and “Price Target Options”.
Career Options automatically vest after 
an agreed period of time, provided the 
participant remains employed by the Group. 
The vesting periods for the initial tranche of 
Career Options awarded in June 2013 was 
split with 50% vesting 18 months from the 
date of grant and 50% vesting three years 
from the date of grant. Career Options 
awarded subsequently have three-year 
vesting time periods. Career Options range 
between 40% and 60% of an individual’s 
total share option award.
Price Target Options vest on the attainment 
of certain share price targets for a continuous 
period of three months. The share price 
targets and the associated vesting are:
 » 33.3% of the Award vests on a 50% 
increase on the Base Price;
 » 33.3% of the Award vests on a 75% 
increase on the Base Price; and
 » 33.3% of the Award vests on a 100% 
increase on the Base Price.
The “Base Price” for the annual award in 
each year is the average share price between 
1 January and 31 March in the year of grant. 
The Base Price for new staff (or for employees 
promoted) at other points in the year is the 
average price over the three months preceding 
the date of the award.
Share price targets must be achieved within 
ten years from the date of grant. Once achieved, 
the Price Target Options vest.
Share options were granted to the two 
Executive Directors on 5 June 2014 and 
18 November 2014. The Base Price for 
these share options was 115.3p and 
102.4p respectively. Share options were 
also granted to senior staff on 5 June 2014 
and 27 October 2014. The Base Price 
for these share options was 115.3p 
and 108.5p respectively.
In 2013 share options were granted 
to an Executive Director and senior staff 
on 26 June 2013 and to senior staff on 
1 October 2013. The Base Price for these 
share options was 65.5p and 78.6p respectively.
Unapproved Share Option Plan (“USOP”)
On 26 June 2013 share options were granted 
to Godden Associates Limited of which 
Ian Godden is a director. The performance 
conditions related to adjusted profit before tax 
for the 2013 financial year, adjusted EPS for 
2014 and an increase in the Company’s share 
price from a base price of 65.5p. It is not 
envisaged that any further share options 
will be granted to anyone under this plan.
Employee Trusts
The KBC Advanced Technologies plc 
Employee Trust and the KBC Advanced 
Technologies plc Employee Benefit Trust 
2013 (the “Trusts”) are available to transfer 
existing issued shares in the Company upon 
exercise of share options.
Directors’ interests in share options 
and Long Term Incentive Plan awards
The interests of the Directors in options 
to purchase or subscribe for shares of the 
Company at 31 December 2014, which 
include options granted by the Trusts, are 
set out overleaf. Awards under the Group’s 
long-term incentive plan are also included. 
Performance conditions for all options and 
awards are shown above. KBC Advanced Technologies plc 
Annual report 2014 24
REMUNERATION COMMITTEE REPORT CONTINUED
Directors’ interests in share options and Long Term Incentive Plan awards continued
Options exercised by Directors during the year are set out below. No options were exercised by Directors during the year ended 31 December 2013.
Options have been exercised since the year end by Andrew Howell over 82,500 shares and by Kevin Smith over 42,500 shares. Other than the 
foregoing, the interests of the Directors to subscribe for or acquire Ordinary shares have not changed up to the date of this report.
The mid-market price of the Company’s shares at the end of the year was 91p and the range of mid-market prices during the year was 
between 82.5p and 138p.
At
1 January
2014
(1)
Exercised Granted Lapsed
At
31 December
2014
Exercise
price
Pence
Mid market
closing price
 (if higher)
(2)
Pence
Period
during which
options are
exercisable
Net value at
31 December
2014
(3)
£
C Brown
LTIP 2006 100,000 43,750 — 56,250 — — 46.0 n/a —
DSOP 2013 100,000 13,333 — 86,667 — 2.5 78.0 n/a —
I Godden
(4)
USOP 275,000 — — — 275,000 — 78.0 2015–2018 250,250 
USOP 125,000 — — — 125,000 — 78.0 2015–2018 113,750 
A Howell
LTIP 2006 50,000 — — — 50,000 — 59.5 2015 45,500
LTIP 2006 40,000 — — — 40,000 — 77.5 2015–2016 36,400
DSOP 2013 PTO 10,000 — — — 10,000 2.5 78.0 2015 8,850
DSOP 2013 PTO 10,000 — — — 10,000 2.5 78.0 2015–2023 8,850
DSOP 2013 Career 22,500 — — — 22,500 2.5 78.0 2015 19,913
DSOP 2013 Career 22,500 — — — 22,500 2.5 78.0 2016–2017 19,913
DSOP 2013 PTO — — 21,600 — 21,600 2.5 135.5 2015–2024 19,116
DSOP 2013 Career — — 32,400 — 32,400 2.5 135.5 2017–2018 28,674
DSOP 2013 PTO — — 10,000 — 10,000 2.5 91.0 2015–2024 8,850
DSOP 2013 Career
— —
15,000
—
15,000 2.5 91.0 2017–2018 13,275
K Smith
LTIP 2006 16,000 — — — 16,000 — 77.5 2015–2016 14,560
DSOP 2013 PTO 20,000 — — — 20,000 2.5 78.0 2015 17,700
DSOP 2013 PTO 10,000 — — — 10,000 2.5 78.0 2015–2023 8,850
DSOP 2013 Career 22,500 — — — 22,500 2.5 78.0 2015 19,913
DSOP 2013 Career 22,500 — — — 22,500 2.5 78.0 2016–2017 19,913
DSOP 2013 PTO — — 21,600 — 21,600 2.5 135.5 2015–2024 19,116
DSOP 2013 Career — — 32,400 — 32,400 2.5 135.5 2017–2018 28,674
DSOP 2013 PTO — — 10,000 — 10,000 2.5 91.0 2015–2024 8,850
DSOP 2013 Career — — 15,000
—
15,000 2.5 91.0 2017–2018 13,275
DSOP 2013 PTO = Price Target Options (see explanation on page 23)
DSOP 2013 Career = Career Options (see explanation on page 23)
(1) Or on appointment if later 
(2) On day immediately prior to date of the award
(3)  Net value of options are calculated using mid market price of the Company’s shares at the end of the year, less exercise price. Net values are before performance criteria, 
which will determine the extent to which exercise is permitted
(4) Options granted to Godden Associates Limited KBC Advanced Technologies plc  
Annual report 2014 25
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
Ms Brown exercised options during the year and simultaneously realised a cash gain of £65,423 through the sale of the shares acquired in part 
to fund the tax liability upon exercise of the options.
Ms Brown received a cash payment in lieu of a pension contribution. In 2014 this represented 8.69% of basic salary (2013: 8.62%).
Messrs Howell and Smith participated in the Group’s profit-sharing/401(k) plan, a defined contribution employee benefit plan in the USA. The employer’s 
contribution for each of them was 8% of aggregate basic salary in a full year up to a maximum salary of US$260,000 per annum.
No payments were made, or benefits accrued, under any other pension arrangements.
The charges to the Income statement in the year for share-based incentives in respect of the Directors were: Ms Brown £7,000 (2013: £38,000), 
Mr Godden £97,000 (2013: £145,000), Mr Howell £44,000 (2013: £nil) and Mr Smith £35,000 (2013: £nil).
By order of the Board
Janet Ireland
Company Secretary
17 March 2015
Directors’ remuneration
The remuneration of individual Directors is shown in the table below.
2014
£000
2013
£000
Emoluments:
– basic salaries 665 446
– compensation for loss of office 101 —
– benefits 56 5
822 451
– fees 78 205
900 656
– pension contributions 16 —
916 656
The remuneration of individual Directors was as follows:
Salary
and fees
£000
Benefits
(1)
£000
2014
Total
£000
2013
Total
£000
2014
Pension
£000
2013
Pension
£000
I Godden 281 24 305 297 — —
P McCloskey
(2)
30 — 30 — — —
O Scott 35 — 35 35 — —
P Taylor 35 — 35 21 — —
C Brown
(3) 
(1 January–6 April 2014) 164 — 164 252 — —
A Howell
(4)(5) 
(28 April–31 December 2014) 177
(6)
30
(6)
207 — 8 —
K Smith
(4)(5) 
(28 April–31 December 2014) 122 2 124 — 8 —
844 56 900 656 16 —
(1) Benefits are made up primarily of private health care, life assurance, disability insurance and provision of car allowance
(2) Appointed as a Director 24 February 2014
(3)  Resigned as a Director 6 April 2014
(4) Remuneration was paid in US dollars and has been translated at an average rate of $1.6465 for 2014
(5) Appointed as a Director 28 April 2014
(6) Includes relocation costs KBC Advanced Technologies plc 
Annual report 2014 26
DIRECTORS’ REPORT
The Directors present their report and 
audited financial statements for the year 
ended 31 December 2014.
Dividend
The Board’s recommendation for the 
payment of a final dividend is shown 
in the Strategic report on page 13.
Directors and their interests
The Directors during the year are shown 
in the table below. The interests of the 
Directors in the share capital of the Company 
(all beneficially held except where noted) 
at 31 December 2014 are shown below.
The interests of the Directors in options to 
acquire shares of the Company, which includes 
options granted by the Trusts and awards under 
the Company’s Long Term Incentive Plans 
and the Discretionary Share Option Plan 
2013, are shown on page 24. None of the 
Non-Executive Directors have any interest 
in options to acquire shares in the Company.
Since the year end, Mr Godden acquired 
75,000 additional shares, Mr Howell acquired 
54,843 additional shares through the exercise 
of share options, Mr Smith acquired 25,893 
additional shares through the exercise 
of share options and Mr Scott (through 
Kestrel Opportunities) acquired an 
additional 321,870 shares.
Other than the above, there have 
been no changes in the shareholdings 
of current Directors up to the date of 
these financial statements.
Employees
The Group continues to place a high emphasis 
on attracting, retaining and developing 
employees to achieve the Group’s business plan 
objectives. The Group pursues an active policy 
of employee involvement and development, 
including communication through staff 
meetings, written communications to all 
staff and use of the Group’s intranet.
Employees are provided with information 
on matters affecting them as employees, 
on developments within the business and 
on the various factors affecting the Group’s 
performance. Group policies and practices 
are continually reviewed and improved as 
required to meet the needs of employees 
and the business.
The Group is committed to providing equality 
of opportunity for all employees and in particular 
ensures that fair selection and development 
procedures apply. The aim of the Group’s 
policy is to ensure that no job applicant or 
employee receives less favourable treatment 
than any other on the grounds of age, sex, 
sexual orientation, disability, marital status, 
colour, religion, race or ethnic origin.
The Group encourages the involvement 
of senior employees in the Group’s success 
through share incentive schemes, as well 
as a bonus scheme which emphasises 
performance and delivery of business 
plan objectives.
Ethics
The Group has well established policies on 
business ethics. Employees are given a copy 
of the policies on joining the Group and all 
employees are required to review the policies 
regularly and report any non-compliance 
or suspicion of non-compliance. A regular 
review emphasises understanding of the 
policies, consultation where required and 
sound judgement. The results of reviews are 
reported to the Board via the Audit Committee.
2.5p Ordinary shares
At
1 January
2014
(1)
At
31 December
2014
(2)
I Godden 157,500 201,000
P McCloskey — —
O Scott
(3)
7,378,863 9,858,428
P Taylor — — 
C Brown — —
A Howell — —
K Smith 21,790 21,790
(1) Or at date of appointment if later
(2) Or at date of resignation if earlier
(3) Non-beneficial interest held through Kestrel Opportunities Fund (“Kestrel Opportunities”)
INTERESTS OF THE DIRECTORS IN THE SHARE CAPITAL OF THE COMPANY
Key performance indicators 
used in the business are shown 
in the graphs on page 1 and in the 
Strategic report on pages 8, 9, 
12 and 13. 
A more detailed review of the 
development and performance of the 
business is given in the Chairman’s 
statement on pages 4 and 5 and in 
the Strategic review on pages 7 to 14.
Principal risks and uncertainties 
facing the Company and its subsidiary 
undertakings and how they are 
controlled are described on page 14.  KBC Advanced Technologies plc  
Annual report 2014 27
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
Corporate governance
Information concerning corporate governance 
is set out in the Corporate governance 
statement on pages 18 to 21.
Financial instruments
An explanation of the Group’s financial risk 
management objectives, policies and strategies 
is set out on page 14 and in note 23.
Shares held in treasury
In October 2014 the Company purchased 
214,000 Ordinary shares of 2.5p each in the 
Company which were transferred into treasury 
to satisfy the future exercise of share options.
Outstanding shareholders’ authority
The authority granted on 4 June 2014 by 
the shareholders for the Company to make 
market purchases, within the meaning of 
Section 693 of the Companies Act 2006, 
of up to 8,873,307 Ordinary shares of 2.5p 
each in the capital of the Company remains 
outstanding until the earlier of the conclusion 
of the Annual General Meeting of the Company 
in 2015 and 30 June 2015.
Shares issued
The Company issued 20,869,565 new Ordinary 
shares of 2.5p each on 10 June 2014 in a 
share placing.
One million new Ordinary shares of 2.5p 
each were issued in July 2014 as part of the 
consideration for the acquisition of FEESA on 
21 July 2014. Half of these consideration 
shares are subject to selling restrictions for 
12 months from the date of acquisition with 
the remainder restricted for a further 12 months.
Except for the above, no shares were issued 
during 2014 other than in connection with the 
operation of the Company’s employee share 
incentive schemes.
Disclosure of information to auditors
All of the current Directors have taken all the 
steps that they ought to have taken to make 
themselves aware of any information needed 
by the Company’s auditors for the purposes 
of their audit and to establish that the auditors 
are aware of that information. The Directors 
are not aware of any relevant audit information 
of which the auditors are unaware.
Registered auditors
A resolution to re-appoint BDO LLP as the 
Company’s auditors and to authorise the 
Directors to fix their remuneration will be put 
to the members at the Annual General Meeting.
Substantial shareholdings
SUBSTANTIAL SHAREHOLDINGS AS AT 31 DECEMBER 2014
At 31 December 2014 the Company had been notified of the interests shown below, excluding those of Directors, in 3% or more of its issued 
share capital.
Name
Percentage
of issued
share capital
%
Kestrel Partners LLP, UK 13.55
AXA Investment Managers SA, UK 11.81
Killik Asset Management, UK 5.66
Kongsberg Gruppen ASA, Norway 4.93
Coltrane Master Fund, L.P., USA 3.85
Hargreave Hale Limited, UK 3.67
SUBSTANTIAL SHAREHOLDINGS AS AT 17 FEBRUARY 2015
At 17 February 2015 the Company had been notified of the interests shown below, excluding those of Directors, in 3% or more of its issued 
share capital.
Name
Percentage
of issued
share capital
%
Kestrel Partners LLP, UK 13.91
AXA Investment Managers SA, UK 11.75
Killik Asset Management, UK 5.63
Kongsberg Gruppen ASA, Norway 4.90
Coltrane Master Fund, L.P., USA 3.83
Hargreave Hale Limited, UK 3.65 KBC Advanced Technologies plc 
Annual report 2014 28
DIRECTORS’ REPORT CONTINUED
Directors’ responsibility 
for the financial statements
The Directors are responsible for preparing 
the Strategic report, 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 elected 
to prepare the Group financial statements 
in accordance with International Financial 
Reporting Standards (“IFRSs”) as adopted by 
the European Union and the Company financial 
statements in accordance with United Kingdom 
Generally Accepted Accounting Practice 
(United Kingdom Accounting Standards 
and applicable law). 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 the Company and of the 
profit or loss of the Group for that period. 
The Directors are also required to prepare 
financial statements in accordance with 
the rules of the London Stock Exchange 
for companies whose securities are 
traded on AIM. 
In preparing these financial statements, 
the Directors are required to:
 » select suitable accounting policies 
and then apply them consistently;
 » make judgements and accounting estimates 
that are reasonable and prudent;
 » state whether the Group financial 
statements have been prepared in 
accordance with IFRSs as adopted 
by the European Union, subject to 
any material departures disclosed and 
explained in the financial statements;
 » state whether the Company 
financial statements have been prepared 
in accordance with United Kingdom 
Generally Accepted Accounting Practice 
(United Kingdom Accounting Standards 
and applicable law), 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.
The Directors are responsible for keeping 
adequate accounting records that are 
sufficient to show and explain the Company’s 
transactions and disclose with reasonable 
accuracy at any time the financial position 
of the Company and enable them to ensure 
that the financial statements comply with 
the requirements of the Companies Act 2006. 
They are also responsible for safeguarding 
the assets of the Company and hence for 
taking reasonable steps for the prevention 
and detection of fraud and other irregularities.
The Directors are responsible for ensuring the 
Annual Report and the financial statements 
are made available on a website. Financial 
statements are published on the Company’s 
website in accordance with legislation in the 
United Kingdom governing the preparation 
and dissemination of financial statements, 
which may differ from legislation in other 
jurisdictions. The maintenance and integrity 
of the Company’s website is the responsibility 
of the Directors. The Directors’ responsibility 
also extends to the ongoing integrity of the 
financial statements contained therein.
By order of the Board
Janet Ireland
Company Secretary
17 March 2015 Financial 
statements
30 Independent auditors’ report
31 Group income statement and 
Group statement of comprehensive income
32 Group statement of changes in equity
33 Group balance sheet
34 Group cash flow statement
35 Notes to the Group financial statements
57 Company balance sheet
58 Notes to the Company financial statements
SHAREHOLDER INFORMATION
62 Notice of the Annual General Meeting
IBC Five-year summary and shareholder information KBC Advanced Technologies plc 
Annual report 2014 30
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF KBC ADVANCED TECHNOLOGIES PLC
We have audited the financial statements of KBC Advanced Technologies plc for the year ended 31 December 2014 which comprise the Group 
and Company balance sheets, the Group income statement, the Group statement of comprehensive income, the Group cash flow statement, 
the Group statement of changes in equity and the related notes. The financial reporting framework that has been applied in the preparation of the 
Group financial statements is applicable law and International Financial Reporting Standards (“IFRSs”) as adopted by the European Union. 
The financial reporting framework that has been applied in preparation of the parent company financial statements 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 auditors’ 
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 
Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the Statement of Directors’ responsibilities, the Directors are responsible for the preparation of the 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 financial statements in 
accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the 
Financial Reporting Council’s (“FRC’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 FRC’s website at www.frc.org.uk/auditscopeukprivate.
Opinion on financial statements
In our opinion: 
 » the financial statements give a true and fair view of the state of the Group’s and the parent company’s affairs as at 31 December 2014 
and of the Group’s profit for the year then ended;
 » the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
 » the parent company’s financial statements have been properly prepared in accordance with United Kingdom Generally Accepted 
Accounting Practice; and
 » the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters 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 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.
John Everingham (Senior Statutory Auditor)
For and on behalf of BDO LLP, statutory auditors
Gatwick
17 March 2015
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127) KBC Advanced Technologies plc  
Annual report 2014 31
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014
Note
2014
£000
2013
£000
Revenue 3 75,954 65,080
Direct costs (13,113) (9,254)
Staff and associate costs 8 (35,855) (32,383)
Depreciation and amortisation 5 (5,691) (4,414)
Other operating charges (14,132) (11,640)
Operating profit 5 7,163 7,389
Finance revenue 6 86 208
Finance cost 6 (578) (476)
Profit before tax 6,671 7,121
Tax expense 9 (2,592) (1,584)
Profit for the year 4,079 5,537
Earnings per share attributable to the ordinary equity shareholders of the parent company
Basic 10 5.7p 9.5p
Diluted 10 5.5p 9.2p
2014
£000
2013
£000
Profit for the year 4,079 5,537
Other comprehensive income/(loss):
— exchange differences on translation of foreign operations recognised directly in equity 1,595 (856)
Total comprehensive income recognised in the year 5,674 4,681
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2014 KBC Advanced Technologies plc 
Annual report 2014 32
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2014
Issued
capital
£000
Share
premium
£000
Capital
redemption
reserve
£000
Merger
reserve
£000
Own
shares
£000
Share-
based
payments
£000
Foreign
exchange
reserve
£000
Retained
earnings
£000
Total
£000
At 1 January 2013 1,470 9,370 113 929 (172) 2,180 2,166 15,311 31,367
Profit for the year — — — — — — — 5,537 5,537
Other comprehensive loss — — — — — — (856) — (856)
Total comprehensive (loss)/income — — — — — — (856) 5,537 4,681
Share-based payments — — — — — 530 — — 530
Shares issued 9 67 — — (1) — — — 75
Purchase of non-controlling interest 
(note 15) — — — — — — — (137) (137)
At 1 January 2014 1,479 9,437 113 929 (173) 2,710 1,310 20,711 36,516
Profit for the year — — — — — — — 4,079 4,079
Other comprehensive profit — — — — — — 1,595 — 1,595
Total comprehensive income — — — — — — 1,595 4,079 5,674
Share-based payments — — — — — 700 — — 700
Shares issued for cash, net of 
transaction costs
540 22,607 — — — — — — 23,147
Shares issued in business 
combination (note 22)
25 — — 1,205 — — — — 1,230
Share buyback — — — — (196) — — — (196)
Movement in own shares — — — — (149) — — 149 —
Dividends — — — — — — — (802) (802)
At 31 December 2014 2,044 32,044 113 2,134 (518) 3,410 2,905 24,137 66,269 KBC Advanced Technologies plc  
Annual report 2014 33
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
Note
2014
£000
2013
£000
Non-current assets
Property, plant and equipment 12 1,026 851
Goodwill 13 15,401 10,200
Other intangible assets 13 18,336 12,011
Deferred tax assets 9 786 447
35,549 23,509
Current assets
Trade and other receivables 16 42,312 23,178
Current tax receivable 2,438 1,647
Cash and cash equivalents 17 11,883 11,960
56,633 36,785
Total assets 92,182 60,294
Non-current liabilities
Long-term borrowings 20 — (600)
Deferred tax liabilities 9 (2,866) (1,476)
Provisions 18 (53) (69)
(2,919) (2,145)
Current liabilities
Trade and other payables 19 (17,539) (12,201)
Short-term borrowings 20 (860) (4,429)
Current tax payable (4,441) (4,745)
Provisions 18 (154) (258)
(22,994) (21,633)
Total liabilities (25,913) (23,778)
Net assets 66,269 36,516
Equity attributable to ordinary equity shareholders of the parent company
Share capital 24 2,044 1,479
Share premium 26 32,044 9,437
Other reserves 26 2,247 1,042
Own shares 26 (518) (173)
Retained earnings 30,452 24,731
Total equity 66,269 36,516
Total equity and liabilities 92,182 60,294
The financial statements on pages 31 to 56 were approved and authorised for issue by the Board of Directors on 17 March 2015 and were 
signed on its behalf by:
Ian Godden Andrew Howell Registered number: 01357958
Director Director
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2014 KBC Advanced Technologies plc 
Annual report 2014 34
Note
2014
£000
2013
£000
Net cash inflow from operating activities
Profit before tax 6,671 7,121
Adjustments for:
Depreciation and amortisation 12, 13 5,691 4,414
Foreign exchange losses/(gains) 647 (439)
Finance revenue 6 (86) (208)
Finance cost 6 578 476
Share-based payment expense 25 700 530
14,201 11,894
Increase in trade and other receivables 17 (19,233) (4,285)
Increase/(decrease) in trade and other payables 17 2,370 (7,960)
Cash used in operations (2,662) (351)
Income taxes paid (3,369) (1,917)
Net cash used in operating activities (6,031) (2,268)
Investing activities
Acquisition of subsidiary, net of cash acquired 22 (9,885) —
Payment of deferred consideration — (1,900)
Purchase of tangible non-current assets 12 (669) (195)
Purchase of intangible non-current assets 13 (1,552) (1,334)
Decrease in advance contract payments — 12,287
Finance revenue received 6 86 208
Net cash (used in)/generated from investing activities (12,020) 9,066
Financing activities
Issue of ordinary shares 24,014 75
Issue cost of ordinary shares (867) —
Payments to acquire treasury shares (196) —
Purchase of non-controlling interest — (137)
Repayment of bank borrowings (3,000) (2,400)
Finance costs paid 6 (578) (476)
Dividends paid to equity holders of parent 11 (802) —
Net cash generated from/(used in) financing activities 18,571 (2,938)
Net increase in cash and cash equivalents 520 3,860
Cash and cash equivalents at 1 January 9,931 6,384
Exchange adjustments 572 (313)
Cash and cash equivalents at 31 December 17 11,023 9,931
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014 KBC Advanced Technologies plc  
Annual report 2014 35
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
1. Accounting policies
KBC Advanced Technologies plc is a public limited company incorporated and domiciled in England and Wales. The Company’s ordinary shares 
are traded on AIM, part of the London Stock Exchange.
Basis of preparation
The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently 
applied to all the years presented, unless otherwise stated.
The Group financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRSs”) as adopted by 
the European Union and as applied in accordance with the provisions of the Companies Act 2006. The principal accounting policies adopted 
by the Group are set out in note 1 and those adopted by the Company in note 31.
The Group financial statements are presented in sterling, rounded to the nearest thousand pounds (£000) except where otherwise indicated. 
They are prepared on the historical cost basis except that certain financial instruments are stated at fair value.
Changes in accounting policies
a) New standards, interpretations and amendments effective from 1 January 2014
None of the new standards, interpretations and amendments, effective for the first time from 1 January 2014, have had a material effect 
on the financial statements.
b) New standards, interpretations and amendments not yet effective
Other than that listed below the Directors do not consider any new standards, interpretations and amendments that have been issued 
but are not yet effective to have a material impact on the Group’s financial statements in the period of initial application. 
 » IFRS 15 Revenue from contracts replaces both IAS 11 and IAS 19 as well as SIC 31, IFRIC 13, IFRIC 15 and IFRIC 18, establishing a single, 
comprehensive framework for revenue recognition. IFRS 15 is effective for annual periods beginning on or after 1 January 2017 and is yet to 
be endorsed by the European Union (“EU”) at the date of approval of these financial statements. The Group has begun a systematic review 
of all existing major consulting and software contracts to ensure that the impact and effect of the new standard is fully understood and 
changes to the current accounting procedures are highlighted and acted upon in advance of the effective date.
Basis of consolidation
The Group financial statements include the financial statements of the Company and all the subsidiaries drawn up to 31 December each year 
during the years reported for the periods during which they were members of the Group. On acquisition, assets and liabilities of subsidiaries 
are measured at their fair values at the date of acquisition with any excess of the cost of acquisition over this value being capitalised as goodwill.
Revenue — Consulting
Fixed price service contracts
Revenue on fixed price service contracts is recognised using the percentage of completion method. Under this method revenues recorded 
represent the aggregate of costs incurred during the year and a portion of estimated profit on individual contracts based on the relationship 
of costs incurred to total estimated costs for each contract. Revisions in estimates are reflected in the accounting period when the revision 
becomes known. Anticipated losses on contracts are charged to income in their entirety when the losses become evident.
Time and material contracts
Revenue for time and materials contracts is recognised as services are performed, generally on the basis of contract allowable labour hours 
worked multiplied by the contract defined billing rates, plus allowable direct costs and expenses incurred in connection with the performance 
of the contract. 
Amounts received in excess of revenue recognised are shown as deferred revenue.
Contract work in progress is included in trade and other receivables and represents revenue recognised in excess of payments on account. 
Revenue — Technology
Software licences
Revenue from licence sales is recognised once the software has been delivered and when no significant contractual obligations remain. 
Revenue from ongoing maintenance, support and upgrades is recognised over the contractually agreed period.
Service consulting and software maintenance
Revenue from service consulting and software maintenance is recognised over the period in which services are provided.
Royalties
Revenue from royalty contracts held with resellers is recognised when it becomes receivable from the resellers.
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014 KBC Advanced Technologies plc 
Annual report 2014 36
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 31 DECEMBER 2014
1. Accounting policies continued
Revenue — Technology continued
Bonuses and penalties
Where some or all of a contract’s revenues are dependent on the impact of KBC’s performance (e.g. in identifying benefits of changes in a client’s 
operations), that element of revenue is only recognised once the contract is sufficiently advanced that it is probable that the performance target 
will be met and the bonus can be measured reliably. Penalties on contracts are provided for at the Directors’ best estimate of the expenditure 
required to settle the Group’s liability.
Direct costs and operating charges
Direct costs include costs of subcontractors. Operating charges include administrative overheads.
Research and development
Research costs are expensed as incurred. Development expenditure incurred on an individual project is carried forward when its future 
recoverability can reasonably be regarded as assured and technical feasibility and commercial viability can be demonstrated. Where these 
criteria are not met the expenditure is expensed to the income statement.
Following the initial recognition of development expenditure the cost model is applied requiring the asset to be carried at cost less any accumulated 
amortisation and accumulated impairment losses. Any expenditure carried forward is amortised over the period of expected future sales from 
the related project. The carrying value of development costs is reviewed for impairment annually when the asset is not yet in use, or more 
frequently when an indicator of impairment arises during the reporting year indicating that the carrying value may not be recoverable.
Goodwill
Goodwill on acquisition is initially measured at cost, being the excess of the cost of the business combination over the acquirer’s interest in 
the net fair value of the identifiable assets, liabilities and contingent liabilities. Following initial recognition, goodwill is measured at cost less 
any accumulated impairment losses. Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances 
indicate that the carrying value may be impaired.
Impairment of assets
The Group assesses at each reporting date whether there is an indication that goodwill, intangibles or property, plant and equipment may be 
impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s 
recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash generating unit’s fair value less costs to sell and its value in 
use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other 
assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written 
down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax 
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses of 
continuing operations are recognised in the income statement in those expense categories consistent with the nature of the impaired asset.
Foreign currencies
Transactions in foreign currencies are recorded in the functional currency at the rate ruling at the date of the transaction. All monetary assets 
and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. Retranslation 
differences are recognised in the income statement. 
All goodwill arising is denominated in the functional currency of the foreign operation on which it arose.
Profits, losses and cash flows of overseas branches and subsidiary undertakings are translated at the average rate of exchange ruling during 
the period as it is a reasonable approximation of the actual transaction rate. The balance sheets of overseas branches and subsidiaries are 
translated at the rate of exchange ruling at the balance sheet date.
The exchange differences arising on the retranslation of opening net assets and of results for the year are taken directly to reserves until the 
disposal of the net investments, at which time they are recognised in the income statement. The cumulative translation differences for foreign 
subsidiaries were deemed to be zero at the transition date for the adoption of IFRSs. 
Financial instruments
Financial assets and financial liabilities, in respect of financial instruments, are recognised on the Group balance sheet when the Group 
becomes a party to the contractual provisions of the instrument.
Financial instruments are initially recorded at fair value. Subsequent valuation depends on the designation of the instrument.
Non-derivative financial instruments
The Group’s non-derivative financial instruments comprise trade receivables, trade payables, financial liabilities, cash and cash equivalents. 
Cash and cash equivalents comprise cash balances and deposits with maturities of three months or less at inception.
Trade receivables and payables and financial liabilities are measured initially at fair value, and subsequently at amortised cost. Trade receivables 
are stated net of allowances for irrecoverable amounts. KBC Advanced Technologies plc  
Annual report 2014 37
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
1. Accounting policies continued
Financial instruments continued
Non-derivative financial instruments continued
Trade receivables, which generally have 30–90 day terms, are recognised and carried at the lower of their original invoiced value and recoverable 
amount. Provision for potential bad debts is made when there is objective evidence that the Group will not be able to recover balances in full. 
The main factors used in assessing such impairment of trade receivables are the age of the balance and the circumstances of the individual customer. 
When the probability of recovery of a debtor balance is assessed as being remote, it is written off, together with any associated provision.
The fair values of non-derivative financial instruments are approximately equal to their book values.
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short-term deposits with an original maturity of three 
months or less.
For the purpose of the Group cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net 
of outstanding bank overdrafts.
Retirement benefit costs
The Group operates contributory pension schemes covering the majority of its permanent employees. The schemes’ funds are administered 
by trustees and are independent of the Group’s finances. The schemes are defined contribution schemes and there are no commitments other 
than the regular contributions which are charged against the income statement in the year in which they become payable.
Provisions
The Group has recognised a provision for liabilities of uncertain timing or amount for onerous leases. The provision is measured at the best 
estimate of the expected future rentals payable less expected future rentals receivable. The amount is discounted at a pre-tax rate which 
reflects the current market assessments of the time value of money and risks specific to the liability.
Share-based payments
The Group operates a number of executive and employee share schemes. The cost of equity-settled transactions with employees is measured 
by reference to the fair value at the date at which they are granted and is recognised as an expense over the vesting period, which ends on the 
date on which the relevant employee becomes fully entitled to the award. The cumulative expense recognised at each reporting date reflects 
the extent to which the vesting period has elapsed and the number of awards that, in the opinion of the Directors of the Group at that date, will 
vest and for which the market and/or non-market conditions will be met. At each balance sheet date before vesting, the cumulative expense 
is calculated and the movement in cumulative expense since the previous balance sheet date is recognised in the income statement, with 
a corresponding entry in equity. No expense is recognised for awards that do not ultimately vest.
Leasing commitments – lessee
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases and are 
charged to the income statement on a straight-line basis over the lease term.
Leasing commitments – lessor
Where the Group has sublet part of its premises, income is taken to the income statement on a straight-line basis over the sublease term.
Intangible assets
Intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss. Amortisation is provided on all 
intangibles at rates calculated to write off the cost of each asset over its expected useful life for a period of up to six years.
Externally acquired intangible assets, acquired through business combinations, comprise intellectual property and other intangibles, which 
include purchased patents, know-how, trademarks, licences and distribution rights. These are capitalised at fair value and amortised on 
a straight-line basis over their estimated useful economic lives.
Contract intangibles are capitalised at cost and amortised with respect to the percentage complete of the contracts that they relate to.
Internally generated intangible assets comprise development costs.
Current estimates of useful economic life of intangible assets are as follows:
Goodwill Indefinite
Intellectual property Five to six years
Development costs (internally generated) One to five years
Contract intangibles Life of contract to which they relate
Other intangibles Five years KBC Advanced Technologies plc 
Annual report 2014 38
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 31 DECEMBER 2014
1. Accounting policies continued
Current and deferred tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax 
rates and laws that are enacted or substantively enacted by the balance sheet date.
Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying 
amounts in the financial statements, with the following exceptions:
 » where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business 
combination that at the time of the transaction affects neither accounting nor taxable profit or loss;
 » in respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal of the temporary 
differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future and taxable profit 
will be available against which the temporary differences can be utilised; and 
 » deferred income tax assets are recognised only to the extent that it is probable that taxable profit will be available against which the 
deductible temporary differences, carried forward tax credits or tax losses can be utilised.
Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the related 
asset is realised or liability is settled, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer 
probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Income tax is charged or credited directly to equity if it relates to items that are credited or charged to equity. Otherwise income tax 
is recognised in the income statement.
Property, plant and equipment
Property, plant and equipment assets are stated at cost less accumulated depreciation. Such cost includes costs directly attributable to making 
the asset capable of operating as intended.
Depreciation is provided on all property, plant and equipment at rates calculated to write off the cost, less estimated residual value, of each 
asset over its expected useful life as follows:
Leasehold improvements The lease term or useful life if shorter
Furniture, fixtures and fittings Five years
Office equipment Five years
Computer hardware Three years
Useful lives and residual values are assessed annually.
2. Critical accounting judgements and estimates
The preparation of the financial statements requires the use of estimates and judgements that affect the reported amounts of assets and 
liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. These estimates are 
based on management’s best knowledge of the amount, events or actions and actual results may ultimately differ from those estimates.
The estimates and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities 
are addressed below.
a) Impairment of goodwill
The Group carries out an annual impairment review or more frequently if events or changes in circumstances indicate that the carrying value 
may be impaired. An impairment loss is recognised when the recoverable amount of goodwill is less than the carrying amount. The impairment 
tests reflect the latest financial budgets, which are based on various assumptions relating to the Group’s businesses including resource 
utilisation, foreign exchange rates, contract awards and contract margins. 
There is an inherent risk in estimating financial budgets; however, the Board believes this has been performed on a fair basis.
b) Revenue recognition 
Revenue on fixed price service contracts is recognised using the percentage-of-completion method by measuring the proportion of costs 
incurred for work performed to total estimated costs. 
These estimated costs are updated during the term of the contract and may result in revision by the Group of recognised revenue and estimated 
costs in the period in which they are identified. Profits on fixed price service contracts result from the difference between incurred costs and 
revenue earned.
Contract accounting requires significant judgement relative to assessing risks, estimating contract revenue and costs, and making assumptions 
for scheduling and technical issues. Due to the size and nature of many of the Group’s contracts, developing total revenue and cost at completion 
estimates requires the use of significant judgement. 
In estimating the expected contract revenue and costs, historical performance gained from other such contracts and experience is used, which 
carries a risk that the judgements applied may not reflect the future outturn of the project.  KBC Advanced Technologies plc  
Annual report 2014 39
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
2. Critical accounting judgements and estimates continued
c) Development costs
Development expenditure is capitalised when the Group considers its future recoverability can reasonably be regarded as assured and technical 
feasibility and commercial viability can be demonstrated. Any expenditure carried forward is amortised over the period of expected future sales 
from the related project. The carrying value of development costs is reviewed for impairment annually when the asset is not yet in use, or more 
frequently when an indicator of impairment arises during the reporting year indicating that the carrying value may not be recoverable. The technical 
and market uncertainties inherent in the development of new products mean that internal development costs will not be capitalised as intangible 
fixed assets until commercial viability of a project is demonstrable and there is probable economic benefit.
3. Revenue 
Revenue arises from:
2014
£000
2013
£000
Consulting
Fixed price service contracts 46,587 39,802
Time and material contracts 8,386 7,427
54,973 47,229
Technology
Software licences 10,950 7,140
Software maintenance 7,627 6,620
Service consulting 1,019 2,863
Royalties 1,385 1,228
20,981 17,851
Total revenue 75,954 65,080
4. Segmental analysis
With regard to the balance sheet, those elements of the balance sheet where segmental reporting is prepared have been disclosed. 
Those elements are trade receivables and provisions, amounts recoverable on contracts and deferred revenue.
At the balance sheet date 39% of total trade receivables were concentrated with one of the Group’s customers (2013: 7%). The balance 
was spread over 123 (2013: 172) customers, none of whom comprised more than 5% (2013: 5%) of the total. An analysis of ageing of trade 
receivables and provisions is given in note 16.
Year ended 31 December 2014
Consulting
£000
Technology
£000
Unallocated
£000
Total
£000
Revenue from external customers 54,973 20,981 — 75,954
Operating profit 2,117 5,046 — 7,163
Finance revenue — — 86 86
Finance cost — — (578) (578)
Profit/(loss) before tax 2,117 5,046 (492) 6,671
Tax expense — — (2,592) (2,592)
Profit/(loss) for the year 2,117 5,046 (3,084) 4,079
As at 31 December 2014
Consulting
£000
Technology
£000
Unallocated
£000
Total
£000
Trade receivables 10,410 4,635 (3) 15,042
Provisions (273) (270) — (543)
Net carrying amount 10,137 4,365 (3) 14,499
Amounts recoverable on contracts 13,659 12,377 — 26,036
Deferred revenue 802 4,471 — 5,273 KBC Advanced Technologies plc 
Annual report 2014 40
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 31 DECEMBER 2014
4. Segmental analysis continued
Year ended 31 December 2013
Consulting
£000
Technology
£000
Unallocated
£000
Total
£000
Revenue from external customers 47,229 17,851 — 65,080
Operating profit 1,251 6,138 — 7,389
Finance revenue — — 208 208
Finance cost — — (476) (476)
Profit/(loss) before tax 1,251 6,138 (268) 7,121
Tax expense — — (1,584) (1,584)
Profit/(loss) for the year 1,251 6,138 (1,852) 5,537
As at 31 December 2013
Consulting
£000
Technology
£000
Unallocated
£000
Total
£000
Trade receivables 5,863 3,918 (48) 9,733
Provisions (647) (249) (13) (909)
Net carrying amount 5,216 3,669 (61) 8,824
Amounts recoverable on contracts 5,928 6,306 — 12,234
Deferred revenue 2,305 3,238 — 5,543
Geographical segments
Revenue from 
external customers Non-current assets
2014
£000
2013
£000
2014
£000
2013
£000
Ecuador 25,195 18,858 6 —
United States of America 8,059 7,084 7,109 6,232
Thailand 3,738 2,196 — —
Canada 3,196 4,597 13 11
Russia 2,862 1,726 — —
Mexico 2,553 2,722 — —
Japan 2,158 5,909 9 6
United Kingdom 2,062 1,613 27,515 16,732
Other 26,131 20,375 111 81
75,954 65,080 34,763 23,062
Revenues above are based on the location of the customer and non-current assets on the location of the assets. The countries listed represent 
those where the total revenue or assets are greater than 4% of the Group total.
The following customer accounts for more than 10% of the Group’s revenue:
Revenue Percentage
2014
£000
2013
£000
2014
%
2013
%
Customer 1 25,195 18,858 33% 29%
 The revenue generated from the major customer is derived from both Consulting and Technology.  KBC Advanced Technologies plc  
Annual report 2014 41
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
5. Group operating profit
This is stated after charging/(crediting) the following:
2014
£000
2013
£000
Depreciation and amortisation:
Depreciation 523 533
Amortisation of intangible assets:
– intellectual property rights 1,527 1,042
– development costs carried forward 1,299 1,078
– contract-based intangibles 1,805 1,379
– other intangibles 537 382
Total 5,691 4,414
Included in other operating charges:
Operating lease rentals:
– minimum lease payments 2,335 2,597
– sublease rentals received (298) (151)
Arbitration costs recoverable — (521)
Share-based payments 700 530
Net foreign exchange differences 70 77
a) Research and development costs
During 2014 the Group incurred research and development costs of £3.7m (2013: £2.7m). Of this amount, £1.6m (2013: £1.3m) related to 
development expenditure for Petro-SIM and has been carried forward as an intangible asset to be amortised against expected future sales. 
The balance was charged directly to staff and associate costs and direct costs in the income statement.
b) Adjusted profit before tax
2014
£000
2013
£000
Operating profit 7,163 7,389
Amortisation of acquisition intangibles 2,064 1,424
Development costs carried forward (1,552) (1,334)
Amortisation of development costs carried forward 1,299 1,078
Exceptional amounts recoverable on contracts provision — 136
Arbitration costs recoverable — (521)
Acquisition costs 352 —
Redundancy and reorganisation income (38) (28)
Share-based payments 700 530
Adjusted operating profit 9,988 8,674
Finance revenue 86 208
Finance cost (578) (476)
Adjusted profit before tax 9,496 8,406
Tax expense (2,888) (2,876)
Adjusted profit after tax 6,608 5,530 KBC Advanced Technologies plc 
Annual report 2014 42
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 31 DECEMBER 2014
6. Finance revenue/costs
2014
£000
2013
£000
Bank interest receivable 86 208
Bank interest payable 578 476
7. Auditors’ remuneration
Current auditors
2014
£000
2013
£000
Fees payable to the Group’s auditors for the audit of the Group financial statements 15 15
Fees payable to the Group’s auditors and their associates for other services:
Audit of the accounts of the subsidiaries 91 136
– tax compliance services 142 202
– tax advisory services 142 122
– other assurance services 120 101
510 576
8. Staff and associate costs
2014
£000
2013
£000
Staff costs (including Directors) comprise:
– wages and salaries 26,373 24,114
– defined contribution pension cost 1,782 1,667
– medical insurance costs 2,439 1,992
– share-based payments 700 530
– social security contributions and similar taxes 2,065 1,906
33,359 30,209
Associate costs 2,496 2,174
35,855 32,383
2014
Number
2013
Number
Average monthly number of persons employed including Directors:
– management 6 7
– technical and sales 277 251
– administration 49 47
332 305 KBC Advanced Technologies plc  
Annual report 2014 43
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
8. Staff and associate costs continued
Key management personnel compensation
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities 
of the Group and comprise the Directors of the Company and the members of the Operating Board, as described on page 20.
2014
£000
2013
£000
Salary 954 893
Bonus — 134
Compensation for loss of office 101 —
Other long-term benefits 61 13
Fees 239 206
Total pension cost 38 38
Social security contributions and similar taxes 52 69
Share-based payment expense 220 273
1,665 1,626
2014
Number
2013
Number
Number of key management personnel in defined contribution pension schemes 3 3
During the year a charge of £57,000 (2013: £239,000) was made in respect of consultancy services provided to the Group by Godden 
Associates Limited. There was no amount payable to Godden Associates Limited, of which Ian Godden is a director, at 31 December 2014 
(2013: £23,000).
Full details of Directors’ emoluments are given in the Remuneration Committee report on page 25.
9. Tax expense
a) Tax on profit charged in the income statement
2014
£000
2013
£000
Current tax expense
Income tax of UK and overseas operations 2,534 2,485
Withholding taxes payable 1,558 975
Withholding taxes recoverable (634) (603)
Adjustment for over provision in prior periods (408) (778)
3,050 2,079
Deferred tax expense
Deferred tax credit for the current period (438) (745)
Adjustment for (over)/under provision in prior periods (20) 250
(458) (495)
Total tax expense 2,592 1,584
Of the total tax expense, £0.2m (2013: £0.8m) relates to UK tax and £2.4m (2013: £0.8m) relates to foreign taxes. KBC Advanced Technologies plc 
Annual report 2014 44
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 31 DECEMBER 2014
9. Tax expense continued
b) Reconciliation of the total tax expense
The tax assessed on the profit for the year is higher (2013: lower) than the standard rate of corporation tax in the UK of 21.49% (2013: 23.25%).
The differences are reconciled below:
2014
£000
2013
£000
Accounting profit before tax 6,671 7,121
Taxation at UK statutory income tax rate of 21.49% (2013: 23.25%) 1,434 1,656
Expenses not deductible for tax purposes 220 361
Income not taxable for tax purposes (72) (23)
Change in statutory tax rate 30 (201)
Unrelieved tax losses carried forward against profits of future years 428 563
Tax losses brought forward set against current profits (95) —
Difference in tax rates on overseas earnings 786 172
Irrecoverable withholding taxes 924 372
Foreign tax costs deductible for tax purposes (126) (67)
Tax overprovided in prior periods (428) (528)
Other (509) (721)
Tax on profit 2,592 1,584
c) Deferred tax
The movement on the deferred tax account is shown below:
2014
£000
2013
£000
At 1 January (1,029) (1,507)
Acquisition during the year (1,524) —
Income statement credit 458 495
Exchange differences 15 (17)
At 31 December (2,080) (1,029)
Deferred tax assets have been recognised in respect of all such tax losses and other temporary differences giving rise to deferred tax assets 
where the Directors believe it is probable that these assets will be recovered.
Recognised deferred tax assets/(liabilities)
Assets
£000
Liabilities
£000
Total
£000
At 31 December 2014
Depreciation in advance of capital allowances 10 (2,668) (2,658)
Other temporary differences 776 (198) 578
786 (2,866) (2,080)
Assets
£000
Liabilities
£000
Total
£000
At 31 December 2013
Depreciation in advance of capital allowances (232) (1,284) (1,516)
Other temporary differences 679 (192) 487
447 (1,476) (1,029) KBC Advanced Technologies plc  
Annual report 2014 45
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
9. Tax expense continued
Recognised deferred tax assets/(liabilities) continued
2014
£000
2013
£000
Unrecognised deferred tax assets:
– unrelieved tax losses carried forward against profits of future years 2,459 2,411
Of the unused tax losses, £11.7m (2013: £11.4m) can be carried forward indefinitely.
No deferred tax is recognised on the unremitted earnings of overseas subsidiaries as the Group is in a position to control the timing of the 
reversal of temporary differences and it is probable that such differences will not reverse in the foreseeable future. The temporary differences 
associated with the investments in subsidiaries for which a deferred tax liability has not been recognised aggregate to £21.0m (2013: £15.4m). 
If the earnings were remitted, tax of £0.2m (2013: £0.1m) would be payable. 
There are no income tax consequences attaching to the payment of dividends by the Group to its shareholders.
d) Tax on other comprehensive income
The amount included in the foreign exchange reserve represents other comprehensive profit of £1.6m (2013: £0.9m loss) less tax of £nil (2013: £nil).
10. Earnings per share
Basic earnings per share are calculated by dividing after tax net profit for the year attributable to ordinary shareholders of the parent company 
by the weighted average number of ordinary shares in issue during the year.
2014
£000
2013
£000
Numerator – earnings
Earnings for the purpose of basic EPS 4,079 5,537
Effect of dilutive potential ordinary shares — —
Earnings for the purpose of diluted EPS 4,079 5,537
Number
000s
Number
000s
Denominator – number of shares
Weighted average number of ordinary shares used in basic EPS 71,150 58,442
Number of shares used for basic and adjusted earnings per share 71,150 58,442
Effect of dilutive potential ordinary shares 2,559 1,532
Weighted average number of ordinary shares for the purposes of diluted EPS 73,709 59,974
Pence Pence
Basic earnings per share 5.7p 9.5p
Diluted earnings per share 5.5p 9.2p
Basic adjusted earnings per share 9.3p 9.5p
Diluted adjusted earnings per share 9.0p 9.2p
Basic adjusted earnings per share are based upon an after tax profit as shown in note 5b. 
The LTIP 2006, DSOP 2013 and USOP as detailed in the Remuneration Committee report on page 23 refer to performance criteria related 
to EPS growth. The basic earnings per share for adjusted profit as defined above are used for this purpose. KBC Advanced Technologies plc 
Annual report 2014 46
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 31 DECEMBER 2014
10. Earnings per share continued
The dilution referred to above is shown below: 
2014
Number
000s
2013
Number
000s
Total share options outstanding 3,445 3,066
Share options excluded (see below) (885) (1,534)
Potentially exercisable share options 2,560 1,532
Fair value shares (1) —
Dilution 2,559 1,532
Share options excluded are those where the exercise price is greater than the share price at 31 December 2014, those with performance 
conditions that have not yet been met and those to be settled by the employee trusts. 
11. Dividends
2014
£000
2013
£000
Final dividend of 1.0p (2013: nil p) per ordinary share proposed and paid during the period relating to the previous period’s results 802 — 
Proposed:
Equity dividend proposed per share for 2014 – 1.1p per share (2013: 1.0p) 820 592
12. Property, plant and equipment
Leasehold
improvements
£000
Fixtures,
 fittings
and office
equipment
£000
Computer
hardware
£000
Total
£000
Cost:
At 1 January 2013 1,439 800 1,940 4,179
Additions 30 41 124 195
Disposals — (60) (282) (342)
Foreign exchange rate movements (1) (16) (7) (24)
At 31 December 2013 1,468 765 1,775 4,008
Additions 6 41 622 669
Acquired through business combinations — 13 55 68
Disposals — (7) (163) (170)
Foreign exchange rate movements (1) 18 57 74
At 31 December 2014 1,473 830 2,346 4,649
Accumulated depreciation:
At 1 January 2013 962 685 1,332 2,979
Depreciation charge for the year 107 92 334 533
Disposals — (56) (280) (336)
Foreign exchange rate movements 1 (16) (4) (19)
At 31 December 2013 1,070 705 1,382 3,157
Depreciation charge for the year 111 36 376 523
Acquired through business combinations — 7 43 50
Disposals — (7) (162) (169)
Foreign exchange rate movements — 17 45 62
At 31 December 2014 1,181 758 1,684 3,623
Net book value at 31 December 2014 292 72 662 1,026
Net book value at 31 December 2013 398 60 393 851
Net book value at 1 January 2013 477 115 608 1,200 KBC Advanced Technologies plc  
Annual report 2014 47
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
13. Intangible assets
Goodwill
£000
Intellectual
property
£000
Development
costs
£000
Contract
intangibles
£000
Other
intangibles
£000
Total
£000
Cost:
At 1 January 2013 10,263 8,747 5,036 4,614 2,655 31,315
Additions — — 1,334 — — 1,334
Foreign exchange rate movements (63) — — (30) (16) (109)
At 31 December 2013 10,200 8,747 6,370 4,584 2,639 32,540
Additions — — 1,552 2,173 — 3,725
Acquired through business combinations 4,994 5,411 — — 2,210 12,615
Foreign exchange rate movements 207 — — 147 54 408
At 31 December 2014 15,401 14,158 7,922 6,904 4,903 49,288
Accumulated amortisation:
At 1 January 2013 — 2,522 2,465 438 1,039 6,464
Amortisation charge for the year — 1,042 1,078 1,379 382 3,881
Foreign exchange rate movements — — — — (16) (16)
At 31 December 2013 — 3,564 3,543 1,817 1,405 10,329
Amortisation charge for the year — 1,527 1,299 1,805 537 5,168
Foreign exchange rate movements — — — — 54 54
At 31 December 2014 — 5,091 4,842 3,622 1,996 15,551
Net book value at 31 December 2014 15,401 9,067 3,080 3,282 2,907 33,737
Net book value at 31 December 2013 10,200 5,183 2,827 2,767 1,234 22,211
Net book value at 1 January 2013 10,263 6,225 2,571 4,176 1,616 24,851
The remaining useful life of the unamortised intellectual property is five years (2013: five years).
14. Goodwill and impairment
The acquired goodwill arose from two acquisitions made in 2002, Linnhoff March and Petroleum Economics, two acquisitions made in 2007, 
TTS Performance Systems and Veritech, 2013’s acquisition of Infochem and the acquisition of FEESA made in 2014. Each acquisition is considered 
by management to have the same risks associated with them as they undertake related activities for similar clients in the industry. The net carrying 
amount of the goodwill can be analysed between the acquisitions as follows:
2014
£000
2013
£000
Linnhoff March — 2,450
Petroleum Economics — 1,502
TTS Performance Systems — 2,624
Veritech — 710
Infochem — 2,914
Consulting 8,229 —
Technology 7,172 —
Total 15,401 10,200
During the year the Group, following a process of fully integrating previous acquisitions over a number of years, undertook an analysis 
of its operations. It was concluded that it is now appropriate to consider the Group’s operations as two cash-generating units (“CGUs”) which 
correspond to the operating segments identified in note 4. Following the acquisition of FEESA in July 2014, the Group immediately embarked 
on integrating its operations such that by the year end the operations were no longer distinct from the rest of the Group’s other operations. 
This resulted in the allocation of £1,248,000 of the goodwill to the Consulting CGU and £3,746,000 to the Technology CGU. KBC Advanced Technologies plc 
Annual report 2014 48
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 31 DECEMBER 2014
14. Goodwill and impairment continued
The Group tests annually for impairment of goodwill or more frequently if there are indications that it might be impaired. The net carrying 
amount was measured against the recoverable amount, determined with reference to value in use expected to be generated by the Group. 
To estimate this, the Group prepares cash flow forecasts based upon the most recent financial results and budgets approved by management. 
For goodwill impairment test purposes a conservative assumption is applied to these cash flow forecasts which limit the future revenue and 
contribution growth to only 5% for both CGUs for the next five years. It is prudently assumed that the terminal growth rate is 2.5% for both 
the CGU’s. Financial budgets are based on historical performance of the Group. The Group has used 14% as its post tax discount rate when 
assessing acquisition opportunities and has therefore used this rate as the core calculation with sensitivities at lower and higher rates, consistent 
with the prior year. Alternative discount rates were considered and did not have a material impact on the value. The resulting value in use was 
higher than the net carrying value and therefore the conclusion was reached that no impairment has taken place. The same assumptions 
described above were used for each identified CGU in the prior year.
15. Subsidiaries
The principal subsidiaries of KBC Advanced Technologies plc, all of which have been included in these consolidated financial statements, 
are as follows:
Proportion of ownership
interest at 
31 December
Name of subsidiary Country of incorporation 2014 2013
KBC Process Technology Limited England 100% 100%
KBC Advanced Technologies, Inc. USA 100% 100%
KBC Advanced Technology Pte Limited Singapore 100% 100%
KBC Advanced Technologies Canada Limited Canada 100% 100%
KBC Advanced Technologies (Beijing) Limited China 100% 100%
Infochem Computer Services Limited England 100% 100%
KBC Advanced Technologies Private Limited India 100% 100%
KBC Advanced Technologies Sdn Bhd Malaysia 100% 100%
KBC Advanced Technologies SL Spain 100% 100%
KBC Process Technology (Middle East) Limited England 100% 100%
KBC Advanced Technologies Pty Limited Australia 100% —
FEESA Limited England 100% —
KBC Advanced Technologies (Thailand) Limited Thailand 100% —
KBC Advanced Technologies plc is the ultimate parent of the Group.
On 16 January 2013 the non-controlling interest of 25% in KBC Environmental Limited was acquired at a cost of £137,000. KBC Advanced Technologies plc  
Annual report 2014 49
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
16. Trade and other receivables
2014
£000
2013
£000
Trade receivables:
– not yet due 12,147 7,052
– past due, zero to six months 2,415 1,617
– past due, beyond six months 480 1,064
15,042 9,733
– provision for impairment of trade receivables (see below) (543) (909)
– net carrying amount 14,499 8,824
Prepayments 1,690 1,234
Other receivables 87 886
Amounts recoverable on contracts 26,036 12,234
42,312 23,178
Movements on the Group provision for impairment of trade receivables were as follows: 
2014
£000
2013
£000
At 1 January 909 2,138
Provided during the year 202 162
Receivables written off during the year as uncollectible (568) (1,391)
At 31 December 543 909
17. Cash and cash equivalents
Note
2014
£000
2013
£000
Cash at bank and in hand 9,729 11,912
Short-term deposits 2,154 48
Cash and cash equivalents per the balance sheet 11,883 11,960
Overdrafts 20 (860) (29)
Revolving credit facility 20 — (2,000)
Cash and cash equivalents per the cash flow statement 11,023 9,931
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between 
one day and three months depending upon the cash requirements of the Group and earn interest at the prevailing short-term deposit rates.
Included in short-term deposits are cash deposits securing performance guarantees (see note 28).
At 31 December 2014 the Group had undrawn committed facilities of £6,708,000 (2013: £7,081,000) which expire in July 2015.
2014
£000
2013
£000
Movement in working capital:
– trade and other receivables (19,233) (4,285)
– trade and other payables 2,370 (7,960)
– exchange differences 647 (439)
(16,216) (12,684) KBC Advanced Technologies plc 
Annual report 2014 50
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 31 DECEMBER 2014
18. Provisions
2014
£000
2013
£000
Onerous lease provision
At 1 January 327 330
Charge/(credit) to income statement:
– unwinding of discount 28 —
– provided during the year 131 79
– utilisation of provision (279) (82)
At 31 December 207 327
Due within one year or less 154 258
Due after more than one year 53 69
207 327
As a result of office rationalisation during 2013 a provision for future lease obligations was made based on the Directors’ best estimate 
of unavoidable costs associated with exit from the office space concerned. The lease to which this relates ends on 28 September 2018. 
19. Trade and other payables
2014
£000
2013
£000
Trade payables 2,955 2,265
Other taxes and social security 139 192
Other payables and accruals 9,172 4,201
Deferred revenue 5,273 5,543
17,539 12,201
Trade payables are generally non-interest bearing and are normally settled within a 35-day period. Other taxes and social security costs payable 
are non-interest bearing and are remitted to the appropriate taxation authorities on a monthly or quarterly basis.
20. Loans and borrowings
Book value
2014
£000
Book value
2013
£000
Fair value
2014
£000
Fair value
2013
£000
Non-current
Bank loan – secured — 600 — 600
Current
Overdrafts 860 29 860 29
Revolving credit facility — 2,000 — 2,000
Bank loan – secured — 2,400 — 2,400
860 4,429 860 4,429
The bank loan and revolving credit facility were fully repaid during the year.
The rate at which interest was payable on the bank loan is 1.75% above LIBOR. 
The rate at which interest is payable on the overdrafts is 2.275% above LIBOR.
The Group’s bankers hold a cross-guarantee and debenture over all assets of KBC Advanced Technologies plc, KBC Process Technology Limited, 
KBC Environmental Limited, Infochem Computer Services Limited, KBC Advanced Technologies SL, KBC Advanced Technologies Inc, 
KBC Advanced Technology Pte Ltd, KBC Advanced Technologies Canada Ltd and KBC Advanced Technologies Sdn Bhd. KBC Advanced Technologies plc  
Annual report 2014 51
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
21. Obligations under leases 
The Group has entered into commercial leases on properties and items of office equipment.
Land and
buildings
2014
£000
Other
2014
£000
Land and
buildings
2013
£000
Other
2013
£000
Future minimum rentals payable under non-cancellable operating leases:
– within one year 1,866 34 1,927 129
– within two to five years inclusive 3,881 10 5,257 22
– after five years — — 151 —
5,747 44 7,335 151
Certain Group companies have sublet office space within properties. The future minimum sublease payments expected to be received under 
non-cancellable sublease agreements as at 31 December 2014 total £1,938,000 (2013: £1,354,000).
The maturity of future minimum sublease payments expected is set out below:
2014
£000
2013
£000
Within one year 388 181
Within two to five years inclusive 1,550 978
After five years — 195
1,938 1,354
22. Acquisitions during the period
On 21 July 2014 the Group acquired 100% of the voting equity instruments of FEESA, a group which is a supplier of oil and gas sector 
software and is incorporated in England and Wales. FEESA also owned a subsidiary incorporated in Australia.
Following the acquisition of FEESA in July 2014, the Group immediately embarked on integrating its operations such that by the year end the 
operations were no longer distinct from the rest of the Group’s other operations. The contribution to revenue and operating profit during the 
period to 31 December 2014 was £1,264,000 and £305,000 respectively. Had the Group acquired FEESA on 1 January 2014, Group revenue 
for the year ended 31 December 2014 would have been £76,673,000 and Group operating profit would have been £6,687,000.
In 2014 the Group incurred £352,000 of acquisition related costs, which were expensed in the Group income statement.
The Directors have allocated fair values to the net assets of the acquisition. Details of the fair value of identifiable assets and liabilities acquired, 
purchase consideration and goodwill are as follows: 
Book value
£000
Adjustment
£000
Fair value
£000
Property, plant and equipment 18 — 18
Other intangibles – intellectual property — 5,411 5,411
Other intangibles – NPV of customer relationships — 2,210 2,210
Other intangibles – goodwill on acquisition 9 — 9
Receivables 670 — 670
Cash 1,397 — 1,397
Payables (673) — (673)
Deferred tax liability — (1,524) (1,524)
1,421 6,097 7,518
Consideration paid
Cash consideration 11,282
Shares issued 1,230
12,512
Goodwill 4,994
The main factors leading to the recognition of goodwill are the future synergistic benefits from the integration of acquired software models 
with current KBC software models.  KBC Advanced Technologies plc 
Annual report 2014 52
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 31 DECEMBER 2014
23. Financial instruments – risk management
The Group’s principal financial instruments are trade receivables, trade payables, bank loans, cash and cash equivalents. The main purpose 
of these financial instruments is to finance the Group’s ongoing operational requirements.
The Directors are responsible for considering all areas of risk that may affect the operations of the Group and for setting policies designed 
to minimise the impact the financial risk may have on the business.
The major financial risks faced by the Group are interest rate risk and foreign currency risk. The Group does not consider that it has any significant 
credit risk with most of its customers due to their profile. However the current economic environment is giving reason to carry out more regular 
reviews of the financial strength of some of our customers and the imposition of tighter payment terms where appropriate.
Further discussion of financial risk management is given on page 14.
Policies for the management of these risks are shown below.
a) Interest rate risk
The Group has low interest rate risk from long-term borrowing at variable rate. At the year end, the Group was financed through 1% debt 
to 99% equity thus minimising the Group’s exposure to interest rate risk.
Cash balances in excess of immediate needs are placed on short-term deposit in the money markets or managed by a third-party fund 
manager. Externally managed funds are invested in deposits with, or certificates of deposit issued by, approved banks or building societies. 
The Group’s present policy is to place not more than £1.0m for maturity in excess of three months.
The use of the Group’s facilities is kept to a minimum (note 17) and repayments are made as soon as is practically possible. Interest charged 
on use of facilities is based on bank base rates and is negotiated annually.
The effect of a 10% movement in the interest rate compared to 2013 would impact finance charges in the income statement by £34,000 
(2013: £39,000) should the profile of use of facilities be similar to 2014.
Within
one year
£000
Total
£000
Interest rate risk
At 31 December 2014
Floating rate:
– cash and bank 11,883 11,883
At 31 December 2013
Floating rate: 
– cash and bank 11,960 11,960
b) Liquidity risk
Customer payment terms vary from contract to contract and can involve extended periods of time before invoices are raised. The liquidity risk 
is managed through use of the overdraft facilities described in note 17.
Regular cash flow forecasts are prepared for the Board and the Executive Committee which, together with information on cash balances, allow 
the Group to ensure that it will have sufficient cash to meet its liabilities when they become due and thus mitigate liquidity risk.
The treasury function for the Group is managed centrally.
The maturity of trade and other payables is set out below:
2014
£000
2013
£000
Current
In six months or less 17,539 12,201 KBC Advanced Technologies plc  
Annual report 2014 53
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
23. Financial instruments – risk management continued
c) Foreign currency risk
Foreign exchange risk arises when individual Group entities enter into transactions denominated in a currency other than their functional currency. 
The majority of transactions continue to be in US dollars, sterling and euro. The Group’s policy, where possible, is to sign contracts that are 
denominated in their functional currency (primarily US dollars or sterling) and to match the currency to which expenses have been incurred.
The Group has a number of overseas subsidiaries and branches whose revenues and costs are denominated in currencies other than sterling, 
the most significant of which are in the USA. 
The effect of movements in the major currencies in which the Group’s operations are carried out and that are different to the operating unit’s 
functional currency based on balances at the balance sheet date is as follows:
Currency Movement
Trade
 receivables
2014
£000
Trade
 payables
2014
£000
Trade
 receivables
2013
£000
Trade
 payables
2013
£000
US dollar 10c 290 (7) 253 5
Euro 10c 94 38 122 10
Within trade and other receivables is £2,942,000 denominated in US dollars (2013: £4,448,000), £1,243,000 denominated in euro 
(2013: £1,590,000), £102,000 denominated in Qatari riyals (2013: £nil), £34,000 denominated in UAE dirham (2013: £34,000), £7,000 
denominated in Japanese yen (2013: £30,000), £nil denominated in Australian dollars (2013: £326,000) and £nil denominated in UK sterling 
(2013: £9,000) that are not in the functional currency of the operating unit involved.
d) Credit risk
The Group’s principal financial assets are trade receivables, bank balances and cash. The main credit risk faced is attributable to the trade 
receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables which are made where there are 
circumstances which, based on experience, are evidence of a likely reduction in the recoverability of the receivable. 
As the majority of the Group’s customers are state-owned or very large oil companies, the risk of non-payment tends to be less of the 
traditional credit nature and more related to customer satisfaction. The minority of customers who are not state-owned or very large oil 
companies are generally non-asset owners and potential investors. For this minority of customers the credit risk is assessed using 
a number of methods and payment terms are tightened as appropriate. 
The Group does not prepare any formal analysis of the credit rating of its customers. 
e) Capital
The Group considers its capital to comprise its ordinary share capital, share premium and accumulated retained earnings. Changes to equity 
during the year are detailed in the Group statement of changes in equity on page 32.
The Group’s objective when managing capital is to ensure that funds are raised in an appropriate, cost-effective manner. The Group’s primary 
concern is to maintain its ability to continue as a going concern in order to provide returns for shareholders and stakeholders in the Company. 
It is the Board’s intention to pay dividends in the future commensurate with the Group’s overall profitability thereby reducing dividend cover.
24. Share capital
2014
Number
2013
Number
2014
£000
2013
£000
Issued and fully paid
Ordinary shares of 2.5p each:
At 1 January 59,155,380 58,826,414 1,479 1,470
– issued for cash 20,869,565 — 522 —
– issued as consideration 1,000,000 — 25 —
– issued on exercise of share options 726,608 328,966 18 9
At 31 December 81,751,553 59,155,380 2,044 1,479
As at 31 December 2014, the Company held 214,000 treasury shares (2013: nil). KBC Advanced Technologies plc 
Annual report 2014 54
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 31 DECEMBER 2014
25. Share-based payments
The Group currently has three share schemes that give rise to share-based charges. These are the LTIP 2006, the DSOP 2013 and the USOP. 
Further details of these schemes are provided in the Remuneration Committee report on page 23.
The expense recognised for equity-settled share-based payments in respect of employee services received during the year ended 
31 December 2014 is £700,000 (2013: £530,000). 
The assumptions made in arriving at the charge for each scheme are detailed below.
LTIP 2006
Executive Directors and other staff have been granted rights to acquire shares at nil cost under this plan introduced in 2006. Vesting is subject 
to performance criteria related to the Group’s EPS growth over a three year period. Failure to meet the performance criteria causes the awards 
to lapse.
For options granted under the LTIP, the share price on the date of grant has been determined to be the fair value of the options. These options 
carry a right to accrued dividends during their lifetime, have nil cost to the recipient and are not subject to market conditions. 
No other features of option grants were incorporated into the measurement of fair value.
DSOP 2013
The DSOP 2013 granted options to eligible employees with the right to acquire shares for the nominal value of ordinary shares. The options 
are exercisable between three months and ten years from the award date, subject to share price and time related performance conditions. 
For options granted under the DSOP 2013, the share price on the date of grant has been determined to be the fair value of the options.
USOP
The USOP granted options in 2013 to Godden Associates Limited with the right to acquire shares for nil cost. The options are exercisable 
between three months and five years from the award date, subject to share price and EPS related performance conditions. 
For options granted under the USOP, the share price on the date of grant has been determined to be the fair value of the options.
The following table illustrates the number and weighted average exercise prices (“WAEP”) of, and movements in, share options during the year:
2014
Number
2014
WAEP
2013
Number
2013
WAEP
Outstanding at 1 January 3,066,155 1.3p 2,182,341 3.7p
Granted during the year 1,412,500 2.5p 2,000,000 2.0p
Exercised during the year (773,108) 0.9p (343,966) 22.0p
Lapsed during the year (260,754) 1.6p (772,220) 0.5p
Outstanding at 31 December 3,444,793 1.9p 3,066,155 1.3p
Exercisable at 31 December 999,120 2.5p 142,886 2.5p
For the share options outstanding at 31 December 2014 the weighted average remaining contractual life is 6.81 years (2013: 5.95 years).
The options outstanding at 31 December 2014 can be analysed as follows:
2014
Number
2013
Number
Options over new shares 2,559,847 1,532,300
Options over shares held in trust 463,000 510,586
Other options
 (1)
421,946 1,023,269
Total options outstanding 3,444,793 3,066,155
(1) At 31 December 2014 the Board had not decided whether these options would be satisfied by the issue of new shares or shares bought in the market
The weighted average fair value of options granted at 31 December 2014 was £3,100,000 (2013: £2,233,000). The range of exercise prices 
for options outstanding at the end of the year was nil–2.5p (2013: nil–2.5p).  KBC Advanced Technologies plc  
Annual report 2014 55
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
26. Reserves
The following describes the nature and purpose of each reserve within equity:
Share capital
The balance classified as share capital comprises the nominal value received on issue of the Company’s equity share capital, comprising 
2.5p ordinary shares. This balance excludes any treasury shares.
Share premium
The balance classified as share premium comprises the premium received on issue of the Company’s equity share capital.
Other reserves
Capital redemption reserve
The balance classified as capital redemption reserve comprises a historic statutory reserve arising on the redemption of shares and is included 
in “other reserves” on the face of the balance sheet.
Merger reserve
The balance classified as merger reserve results from the Company having secured merger relief under Section 612 of the Companies Act 2006, 
when subsidiaries were acquired through the issue of the Company’s own equity shares.
Own shares
Own shares comprise 570,790 (2013: 617,290) 2.5p ordinary shares in the Company acquired at a weighted average cost of £0.57 (2013: £0.25) 
each held by the employee trusts. The market value of these shares at 31 December 2014 was £518,000 (2013: £725,000). Options over these 
shares have been granted to employees, exercisable at prices ranging from nil to 2.5p per share. The 570,790 (2013: 617,290) shares over 
which options remain exercisable relate to three year options which may not be exercised unless the performance criteria are met. 
These criteria are set out in note 25.
Dividends on the shares owned by the employee trusts, the purchase of which was funded by interest free loans to the Trust from 
KBC Advanced Technologies plc, are waived. All expenses incurred by the Trust are settled directly by KBC Advanced Technologies plc 
and are charged in the accounts as incurred.
Retained earnings
Share-based payments
The balance classified as share-based payments comprises the accumulated IFRS 2 fair value charge.
Foreign exchange reserve
The foreign exchange reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.
27. Capital commitments 
At 31 December 2014 the Group had no capital commitments (2013: £nil).
28. Contingent liabilities
Performance guarantees
Bank-backed performance guarantees given to third parties as at 31 December 2014 in respect of Group companies are detailed below:
At 31 December 2014
Tender
 bonds
£000
Advance
 payment
 and
performance
 guarantees
£000
Total
£000
Cash cover
£000
UK 66 6,996 7,062 5
Singapore — 120 120 120
Total 66 7,116 7,182 125
The Directors consider that given the history of non-drawing on any guarantee that these guarantees will not be called upon in the future. KBC Advanced Technologies plc 
Annual report 2014 56
NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 31 DECEMBER 2014
28. Contingent liabilities continued
Performance guarantees continued
For those guarantees which are secured by cash, the use of the cash is restricted by the terms of the guarantees. 
At 31 December 2013
Tender bonds
£000
Advance
payment and
performance
guarantees
£000
Total
£000
Cash cover
£000
UK 63 3,544 3,607 5
Singapore 6 89 95 95
Total 69 3,633 3,702 100
29. Pensions
The Group contributes to defined contribution pension schemes for its Directors and employees. The assets of the schemes are held 
separately from those of the Group in independently administered funds.
2014
£000
2013
£000
Amount recognised as an expense 1,782 1,667
30. Other related party transactions
Other than compensation of key management personnel disclosed in note 8 there are no transactions with other related parties. 
Full details of Directors’ emoluments are given in the Remuneration Committee report on page 25.
There were no other transactions with Directors of the Company. KBC Advanced Technologies plc  
Annual report 2014 57
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
Note
2014
£000
2013
£000
Fixed assets
Intangible assets 34 3,080 2,827
Investments 35 40,924 27,822
44,004 30,649
Current assets
Debtors 36 20,632 13,591
Cash and cash equivalents 824 366
21,456 13,957
Creditors: amounts falling due within one year 37 (7,208) (10,214)
Net current assets 14,248 3,743
Total assets less current liabilities 58,252 34,392
Creditors: amounts falling due after one year — (600)
Net assets 58,252 33,792
Capital and reserves
Called up share capital 38/39 2,044 1,479
Share premium account 39 32,044 9,437
Capital redemption account 39 113 113
Merger reserve 39 2,134 929
Reserve for own shares 39 (518) (173)
Profit and loss account 39 22,435 22,007
Shareholders’ funds 58,252 33,792
The financial statements on pages 57 to 61 were approved and authorised for issue by the Board of Directors on 17 March 2015 and were 
signed on its behalf by:
Ian Godden Andrew Howell
Director Director
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2014 KBC Advanced Technologies plc 
Annual report 2014 58
31. Accounting policies
Basis of preparation
The financial statements have been prepared under the historical cost convention as modified for certain items which have been measured 
at fair value, namely financial instruments, and in accordance with UK applicable accounting standards.
No profit and loss account is presented for KBC Advanced Technologies plc, as permitted by Section 408 of the Companies Act 2006.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or 
events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more, tax with the following exceptions:
 » provision is made for tax on gains arising from gains on disposal of fixed assets that have been rolled over into replacement assets, only to 
the extent that at the balance sheet date there is a binding agreement to dispose of the assets concerned. However, no provision is made 
where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into 
replacement assets and charged to tax only if the replacement assets are sold;
 » provision is made for deferred tax that would arise on remittance of the retained earnings of overseas subsidiaries only to the extent that 
at the balance sheet date dividends have been accrued as receivable; and
 » deferred tax assets are recognised only to the extent that the Directors consider that it is more likely than not that there will be suitable 
taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences 
reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer 
probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated 
in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and 
loss account.
Research and development
Research costs are expensed as incurred. Development expenditure incurred on an individual project is carried forward when its future 
recoverability can reasonably be regarded as assured and technical feasibility and commercial viability can be demonstrated. Where these 
criteria are not met the expenditure is expensed to the income statement.
Following the initial recognition of development expenditure, the cost model is applied requiring the asset to be carried at cost less any 
accumulated amortisation and accumulated impairment losses. Any expenditure carried forward is amortised over the period of expected 
future sales from the related project. The carrying value of development costs is reviewed for impairment annually when the asset is not 
yet in use or more frequently when an indicator of impairment arises during the reporting year indicating that the carrying value may not 
be recoverable.
The technical and market uncertainties inherent in the development of new products mean that internal development costs will not be capitalised 
as intangible fixed assets until commercial viability of a project is demonstrable and there is probable economic benefit. Expenditure on product 
maintenance and support is expensed as incurred.
Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, do not qualify 
as trading assets and have not been designated as either fair value through profit and loss or available for sale. Such assets are carried at 
amortised cost.
Related party transactions
The Company has taken advantage of the exemption granted by FRS 8 from disclosing related party transactions with entities that are wholly 
owned by KBC Advanced Technologies plc.
Investments
Investments in subsidiaries are recorded at cost less provision for impairment.
NOTES TO THE COMPANY FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014 KBC Advanced Technologies plc  
Annual report 2014 59
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
31. Accounting policies continued
Intangible assets
Intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss. 
Amortisation is provided on all intangibles at rates calculated to write off the cost of each asset over its expected useful life for a period 
of up to ten years as follows:
Intellectual property Five to six years
Capitalised development expenditure One to five years
Own shares
Own shares are recorded at cost. Options over some of these shares have been granted to employees of Group subsidiaries.
32. Profit attributable to members of the parent company
The profit dealt with in the financial statements of the parent company was £381,000 (2013: £4,466,000).
33. Directors’ emoluments
Full details of Directors’ emoluments are given in the Remuneration Committee report on page 25.
The parent company has no employees excluding Directors (2013: nil).
34. Intangible fixed assets
Intellectual
property
rights
£000
Development
£000
Total
£000
Cost
At 1 January 2014 1,835 6,370 8,205
Additions — 1,552 1,552
At 31 December 2014 1,835 7,922 9,757
Accumulated amortisation
At 1 January 2014 1,835 3,543 5,378
Amortisation charge for the year — 1,299 1,299
At 31 December 2014 1,835 4,842 6,677
Net book value at 31 December 2014 — 3,080 3,080
Net book value at 31 December 2013 — 2,827 2,827
35. Investments
2014
£000
2013
£000
Subsidiary undertakings:
Cost and net book value at 1 January 27,822 27,057
Additions 12,512 235
Capital contribution 590 530
At 31 December 40,924 27,822
In line with UITF 44 an investment of £590,000 (2013: £530,000) has been recognised in relation to the capital contribution made 
by the Company to its subsidiaries. KBC Advanced Technologies plc 
Annual report 2014 60
NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 31 DECEMBER 2014
35. Investments continued
The Company directly holds equity in the following principal subsidiary undertakings:
Country of registration
Proportion of voting rights
and direct equity interest
Name of subsidiary (or incorporation) and operation 2014 2013
KBC Process Technology Limited England 100% 100%
KBC Advanced Technologies, Inc. USA 100% 100%
KBC Advanced Technology Pte Limited Singapore 100% 100%
Infochem Computer Services Limited England 100% 100%
KBC Advanced Technologies Sdn Bhd Malaysia 90% 90%
KBC Advanced Technologies SL Spain 100% 100%
KBC Advanced Technologies Pty Limited Australia 100% —
FEESA Limited England 100% —
KBC Advanced Technologies (Thailand) Limited Thailand 98% —
The nature of business of these subsidiaries is consulting and technology services to the oil industry and other process industries.
On 16 January 2013, the minority interest of 25% in KBC Environmental Limited was acquired at a cost of £137,000.
36. Debtors
2014
£000
2013
£000
Amounts owed by subsidiary undertakings 20,310 13,575
Other debtors and prepayments 322 16
20,632 13,591
Amounts owed by subsidiary undertakings are not considered to be impaired and are recoverable within six months. There has been no history 
of default by any subsidiary undertaking.
37. Creditors
Amounts falling due within one year
2014
£000
2013
£000
Trade creditors 157 141
Amounts owed to subsidiary undertakings 6,284 5,091
Revolving credit facility — 2,000
Bank loan – secured (see note 20) — 2,400
Current corporation tax 184 261
Deferred tax liability 498 155
Other creditors and accruals 85 166
7,208 10,214
Amounts falling due after one year
2014
£000
2013
£000
Bank loan – secured (see note 20) — 600  OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
KBC Advanced Technologies plc  
Annual report 2014 61
38. Share capital
2014
Number
2013
Number
2014
£000
2013
£000
Issued and fully paid
Ordinary shares of 2.5p each:
– at 1 January 59,155,380 58,826,414 1,479 1,470
– issued for cash 20,869,565 — 522 —
– issued as consideration 1,000,000 — 25 —
– issued on exercise of share options 726,608 328,966 18 9
 At 31 December 81,751,553 59,155,380 2,044 1,479
Options to subscribe for new ordinary shares of 2.5p each, including LTIP awards and those noted in the Remuneration Committee report, 
at 31 December 2014 are as follows:
Date granted
Options
outstanding
Exercise price
pence Exercise period
June 2013 1,108,348 2.5 December 2014 – June 2023
October 2013 75,000 2.5 October 2014 – September 2023
June 2014 1,076,500 2.5 June 2017 – June 2024
October 2014 249,999 2.5 October 2017 – October 2024
November 2014 50,000 2.5 November 2017 – November 2024
2,559,847
39. Movements on reserves
Share
capital
£000
Share
premium
£000
Capital
redemption
reserve
£000
Merger
reserve
£000
Own
shares
£000
Profit
and loss
account
£000
Total
£000
At 1 January 2013 1,470 9,370 113 929 (172) 17,011 28,721
Profit for the year — — — — — 4,466 4,466
Share-based payments — — — — — 530 530
Shares issued 9 67 — — (1) — 75
At 1 January 2014 1,479 9,437 113 929 (173) 22,007 33,792
Profit for the year — — — — — 381 381
Share-based payments — — — — — 700 700
Shares issued for cash, net of transaction costs 540 22,607 — — — — 23,147
Shares issued in business combination 25 — — 1,205 — — 1,230
Share buyback — — — — (196) — (196)
Movement in own shares — — — — (149) 149 —
Dividends — — — — — (802) (802)
At 31 December 2014 2,044 32,044 113 2,134 (518) 22,435 58,252
40. Contingent liabilities
The Group’s bankers hold a cross-guarantee and debenture over all assets of KBC Advanced Technologies plc, KBC Process Technology Limited, 
KBC Environmental Limited, Infochem Computer Services Limited, KBC Advanced Technologies SL, KBC Advanced Technologies Inc, 
KBC Advanced Technology Pte Limited, KBC Advanced Technologies Canada Limited and KBC Advanced Technologies Sdn Bhd. 
This is in place as security for the overdraft, guarantee and forward exchange facility.
41. Capital commitments
At 31 December 2014 and 2013 the Company had no capital commitments. KBC Advanced Technologies plc 
Annual report 2014 62
NOTICE OF THE ANNUAL GENERAL MEETING
FOR THE YEAR ENDED 31 DECEMBER 2014
Notice is hereby given that the Annual General Meeting of KBC Advanced Technologies plc (the “Company”) will be held at Weber Shandwick, 
2 Waterhouse Square, 140 Holborn, London EC1N 2AE at 3.00 pm on Wednesday 17 June 2015 for the purpose of transacting the 
following business:
Ordinary business
1.  To receive the audited financial statements of the Company for the year ended 31 December 2014 and the Directors’ 
and Auditors’ reports thereon.
2. To re-appoint BDO LLP as the Company’s auditors and to authorise the Directors to fix their remuneration.
3. To re-elect Ian Adam Godden as a Director of the Company.
4. To re-elect Oliver Rupert Andrew Scott as a Director of the Company.
5.  To declare a final dividend for the year ended 31 December 2014 of 1.1p per Ordinary share payable on 22 July 2015 to the holders of Ordinary 
shares of the Company whose names appear on the register of members of the Company at the close of business on 10 July 2015.
Special business
To consider and, if thought fit, to pass the following resolutions which will be proposed, in the case of Resolution 6, as an ordinary resolution 
and, in the case of Resolutions 7 and 8, as special resolutions of the Company:
6. That the Directors be generally and unconditionally authorised pursuant to Section 551 of the Companies Act 2006 (the “Act”) to allot:
 (a)  relevant securities (within the meaning of Section 551 of the Act) up to an aggregate nominal amount of £685,027 representing 
a number of Ordinary shares of 2.5p each (the “Shares”) equivalent to approximately one third of the issued share capital of the 
Company at the date of this Notice; and
 (b)  equity securities (within the meaning of Section 560 of the Act) up to an aggregate nominal amount of £1,370,055 representing a number 
of Shares equivalent to approximately two thirds of the issued share capital of the Company at the date of this Notice (such an amount 
to be reduced by the aggregate nominal amount of relevant securities issued under paragraph (a) above), in connection with a rights 
issue to holders of Shares in proportion (as nearly as may be) to their holdings of such shares and so that the Directors may impose 
such exclusions or other arrangements as the Directors may deem necessary or expedient to deal with equity securities representing 
fractional entitlements and with legal or practical problems under the laws of, or the requirements of, any regulatory body or any stock 
exchange in any territory or otherwise.
  The authorities referred to in this Resolution 6 shall be in substitution for all other existing authorities dealing with the subject matter of this 
Resolution 6 and shall expire (unless previously revoked or varied by the Company in general meeting) at the earlier of the conclusion of the 
Annual General Meeting of the Company to be held in 2016 and 30 June 2016. The Company may before such expiry make offers or agreements 
which would or might require such securities to be allotted after the expiry of the authority and the Directors are hereby authorised to allot 
such securities in pursuance of such offers or agreements as if the authority conferred hereby had not expired. This authority shall replace 
all existing authorities conferred on the Directors in respect of the allotment of such securities to the extent that the same have not been 
previously utilised.
7.  That the Directors, pursuant to Section 570 of the Act, be empowered to allot equity securities (within the meaning of Section 560 of the 
Act) for cash pursuant to the authority conferred by Resolution 6 as if Section 561(1) of the Act did not apply to any such allotment, provided 
that this power shall be limited to:
 (a)  the allotment of equity securities where such securities have been offered (whether by way of a rights issue, open offer or otherwise 
but in the case of the authority granted under paragraph (b) of Resolution 6 by way of rights issue only) to holders of Shares in proportion 
(as nearly as may be) to their holdings of Shares and so that the Directors may impose such exclusions or other arrangements as the 
Directors may deem necessary or expedient to deal with equity securities representing fractional entitlements and with legal or practical 
problems under the laws of, or the requirements of, any regulatory body or any stock exchange in any territory or otherwise; and 
 (b)  the allotment of equity securities pursuant to the authority granted by paragraph (a) of Resolution 6 (other than pursuant to paragraph (a) 
of this Resolution 7) of equity securities (i) arising from the exercise of options outstanding at the date of this Resolution 7 and (ii) up to 
an aggregate nominal value of £205,528 or 10% of the issued share capital of the Company, whichever is the higher, 
  and this power shall expire (unless previously revoked or varied by special resolution of the Company in general meeting) at the earlier of 
the conclusion of the Annual General Meeting of the Company to be held in 2016 and 30 June 2016. The Company may before such expiry 
make offers or agreements which would or might require equity securities to be allotted after the expiry of the authority and the Directors 
are hereby authorised to allot equity securities in pursuance of such offers or agreements as if the authority conferred hereby had not expired. 
This authority shall replace all existing authorities conferred on the Directors in respect of the allotment of relevant securities to the extent 
that the same have not been previously utilised. KBC Advanced Technologies plc  
Annual report 2014 63
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
Special business continued
8.  That the Company be and is generally and unconditionally authorised to make market purchases, within the meaning of Section 693 of the 
Act, of Shares provided that:
 (a) the maximum aggregate number of Shares which may be purchased under this authority is 12,331,731 Shares;
 (b) the minimum price, exclusive of expenses, which may be paid for each Share is 2.5p;
 (c)  the maximum price, exclusive of expenses, which may be paid for each Share shall be an amount equal to 105% of the average of the 
middle market quotations for the Shares taken from the listing of the AIM market of London Stock Exchange plc over the five business 
days immediately preceding the day on which the Shares are contracted to be purchased;
 (d)  the authority to purchase conferred by this Resolution 8 shall expire at the earlier of the conclusion of the Annual General Meeting 
of the Company to be held in 2016 and 30 June 2016, unless the authority is extended before then by a resolution of the Company 
in general meeting; and
 (e)  the Company may make a contract to purchase Shares under this authority before its expiry which would or might be executed 
wholly or partly after such expiry and in any such case the Company may make such a purchase under the contract after the expiry 
of this authority.
By order of the Board
Janet Ireland Registered Office
Company Secretary 42–50 Hersham Road
17 March 2015 Walton on Thames KT12 1RZ
Notes
1.  A member entitled to attend and vote at the Annual General Meeting (“AGM”) convened by the Notice above is entitled to appoint one or more proxies to exercise all and any of his rights to 
attend, speak and vote in his place. You may appoint more than one proxy provided each proxy is appointed to exercise rights attached to different shares and each such form of proxy shall 
specify the shares in respect of which each proxy is appointed. You may not appoint more than one proxy to exercise rights attached to any one share. A proxy need not be a member of the 
Company. Forms for the appointment of a proxy that can be used for this purpose have been provided to members with this Notice of Meeting.
2.  To be valid, forms of proxy must be lodged with Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol BS99 6ZY not later than 3.00 pm on Monday 15 June 2015. If the 
AGM is adjourned, the proxy must be received at the above address not less than 48 hours before the time of the adjourned AGM. In the case of a poll taken more than 48 hours after it was 
demanded, the proxy must be received at the above address not less than 24 hours before the time appointed for the taking of the poll. In the case of a poll taken not more than 48 hours after 
it  was demanded, the proxy must be received at the above address at the time at which the poll was demanded.
3. Completion of a form of proxy does not prevent a holder of shares from attending and voting at the AGM should he or she so wish.
4.  In order to have the right to attend and/or vote at the AGM, a person must be registered on the register of members of the Company not later than 6.00 pm on Monday 15 June 2015 or, in the 
case of an adjournment of the AGM, at the time which is 48 hours before the time appointed for the adjourned meeting. Changes to entries in the register of members of the Company 
after 6.00 pm on Monday 15 June 2015 shall be disregarded in determining the rights of any person to attend and/or vote at the AGM.
5.  To appoint one or more proxies or to give an instruction to a proxy (whether previously appointed or otherwise) via the CREST system, CREST messages must be received by the issuer’s 
agent (ID number 3RA50) not later than 48 hours before the time appointed for holding the meeting. For this purpose, the time of receipt will be taken to be the time (as determined by the 
time stamp generated by the CREST system) from which the issuer’s agent is able to retrieve the message. The Company may treat as invalid a proxy appointment sent by CREST in the 
circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001.
6. In order to facilitate voting by corporate representatives at the AGM, arrangements will be put in place at the AGM so that:
 (a)  if a corporate member has appointed the Chairman of the meeting as its corporate representative with instructions to vote on a poll in accordance with the directions of all the 
other corporate representatives for that member at the AGM, then, on a poll, those corporate representatives will give voting directions to the Chairman and the Chairman will 
vote (or withhold a vote) as corporate representative in accordance with those directions; and
 (b)  if more than one corporate representative for the same corporate member attends the AGM but the corporate member has not appointed the Chairman of the meeting as its corporate 
representative, a designated corporate representative will be nominated from those corporate representatives who attend who will vote on a poll and the other corporate representatives 
will give voting directions to that designated corporate representative. A corporation which is a member can appoint one or more corporate representatives who may exercise, on its 
behalf, all its powers as a member provided that no more than one corporate representative exercises powers over the same share.
7.  Copies of the contracts of the Directors with the Company and/or its subsidiaries are available for inspection at the registered office of the Company during normal business hours on any 
weekday (except Saturdays and public holidays).
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
KBC Advanced Technologies plc  
Annual report 2014 63 KBC Advanced Technologies plc 
Annual report 2014 64
NOTICE OF THE ANNUAL GENERAL MEETING CONTINUED
FOR THE YEAR ENDED 31 DECEMBER 2014
Explanation of Resolution 3
Following formal performance evaluation, Ian Godden continues to be an effective Director and Chairman and demonstrates commitment 
to the role. Mr Godden’s biographical details are set out on page 16.
Explanation of Resolution 4
Following formal performance evaluation, Oliver Scott continues to be an effective Non-Executive Director and demonstrates commitment 
to the role. Mr Scott’s biographical details are set out on page 16.
Explanation of Resolution 6
The Directors wish to renew at the forthcoming AGM the authority and power which were granted to them at the AGM held on 4 June 2014. 
Such authority and power are normally given on an annual basis to the Directors of a company that has its shares traded on AIM. The Act provides 
that the Directors may not issue new shares unless authorised to do so by the shareholders. In Resolution 6 authority is being sought to issue 
new Shares up to a maximum aggregate nominal amount of £685,027, representing a number of Shares equivalent to approximately one third 
of the issued share capital of the Company at the date of this Notice. Such authority will (except in relation to commitments which have been 
made but not fulfilled) lapse on 30 June 2016 or, if earlier, at the conclusion of the AGM of the Company to be held in 2016.
In 2008 the Association of British Insurers (“ABI”) issued new guidance on the approval of authorities to allot shares in which it stated that, in 
addition to requests for authorisation to allot new shares in an amount up to one third of the existing issued ordinary share capital of a company, 
it would regard as routine requests to authorise the allotment of a further one third in connection with a rights issue. In light of this, paragraph (b) 
of Resolution 6 proposes that a further authority be conferred on the Directors to allot unissued Ordinary shares in connection with a rights issue 
in favour of holders of equity securities up to a maximum aggregate nominal amount of £1,370,055 (such amount to be reduced by the nominal 
amount of any relevant securities issued under the authority conferred by paragraph (a) of Resolution 6). 
The granting of this authority will ensure that the Directors are able to maintain a degree of flexibility for the issue of Shares without the need to 
obtain shareholders’ consent on each occasion. The Directors have no present intention to exercise this authority except in connection with the 
Company’s employee share incentive schemes. In the event that this further authority is exercised, the Directors intend to follow emerging best 
practice as regards its use (including as to the requirement for Directors to stand for re-election) as recommended by the ABI.
Explanation of Resolution 7
If new Shares are to be allotted for cash, Section 561(1) of the Act requires the new Shares to be offered first to the existing holders of Shares 
on a proportionate basis. Resolution 7, which will be proposed as a special resolution, is in accordance with normal practice and, if passed, will give 
the Directors the power to allot Shares for cash without first offering those Shares to existing shareholders. This power will allow the Directors to 
implement rights issues, open offers or other similar such issues of Shares without complying fully with the pre-emption requirements of the Act, 
which can prove unduly burdensome in certain circumstances (for example, in the case of shareholders resident in certain overseas countries). 
Power is also being sought to enable the Directors to issue Shares for cash otherwise than on a pre-emptive basis in relation to outstanding share 
options and otherwise for new Shares up to an aggregate nominal amount of £205,528 which represents a number of Shares approximately equal 
to 10% of the Company’s issued share capital at the date of this Notice. If given, the power contained in this special resolution will (except in relation 
to commitments which have been made but not fulfilled) lapse on 30 June 2016 or, if earlier, at the conclusion of the AGM of the Company to be 
held in 2016.
Explanation of Resolution 8
This Resolution, which will be proposed as a special resolution, will grant authority to the Company to purchase its Shares in the market up to a 
limit of 12,331,731 Shares, representing approximately 15% of the issued shares at the date of this Notice. The minimum and maximum prices to 
be paid for the Shares are detailed in this Resolution and the authority will (except in relation to commitments which have been made but not fulfilled) 
lapse on 30 June 2016 or, if earlier, at the conclusion of the AGM of the Company to be held in 2016. Although the Directors do not currently intend 
to exercise the authority being sought to make specific purchases of any Shares, they consider it to be beneficial to have the flexibility of such an 
authority to make purchases within the terms of the Resolution. The Directors would carefully consider any exercise of the authority being sought 
and would only make purchases provided that due consideration had been given to the overall financial position of the Company and if it was in the 
best interests of shareholders generally. Shareholders would be advised immediately after any repurchase of Shares as to whether such Shares 
had been cancelled or were held in treasury. As at 6 March 2015 options over 2,921,799 Shares were outstanding under the Company’s share 
option schemes, representing 3.55% of the Company’s issued share capital at that date. If the authority being sought by the Company to purchase 
its Shares were to be exercised in full, such options would represent 4.18% of the Company’s issued share capital at 6 March 2015. The performance 
targets of the share option schemes would be adjusted automatically in the event of any change in the Company’s capital structure.  
2010
£000
2011
£000
2012
£000
2013
£000
2014
£000
Revenue – consulting 39,248 42,733 44,320 47,229 54,973
Revenue – software 13,813 12,992 18,820 17,851 20,981
Revenue – total 53,061 55,725 63,140 65,080 75,954
Operating profit 3,776 5,011 3,860 7,389 7,163
Net interest (128) (81) (197) (268) (492)
Profit before tax 3,648 4,930 3,663 7,121 6,671
Adjusted operating profit 5,016 5,969 5,986 8,674 9,988
Net interest (128) (81) (197) (268) (492)
Adjusted profit before tax 4,888 5,888 5,789 8,406 9,496
EPS – basic 4.0p 5.9p (2.9)p 9.5p 5.7p
EPS – diluted 4.0p 5.9p (2.9)p 9.2p 5.5p
Contracted work 58,700 48,709 82,864 78,203 87,987
Cash and cash equivalents as cash flow statement 4,506 5,815 6,384 9,931 11,023
Borrowings — — (5,400) (3,000) —
 OVERVIEW
 STRATEGIC REPORT
 GOVERNANCE
 FINANCIAL STATEMENTS
 SHAREHOLDER INFORMATION
FIVE-YEAR SUMMARY
Company Secretary
Janet Ireland
Registered office 
42–50 Hersham Road  
Walton on Thames KT12 1RZ
Registered number
01357958
Auditors
BDO LLP
2 City Place  
Beehive Ring Road  
Gatwick RH6 0PA
Principal bankers
HSBC Bank plc
HBEU City of London Corporate Banking Centre  
First Floor  
60 Queen Victoria Street  
London EC4N 4TR
Principal solicitors
Shoosmiths
Apex Plaza  
Forbury Road  
Reading RG1 1SH
Nominated advisor and broker
Cenkos Securities plc
6.7.8. Tokenhouse Yard  
London EC2R 7AS
Registrars
Computershare Investor Services PLC
The Pavilions 
Bridgwater Road 
Bristol BS13 8AE
Key dates
Preliminary announcement of results 17 March 2015 
Annual General Meeting 17 June 2015 
Half year results (not confirmed) 22 September 2015
SHAREHOLDER INFORMATION
KBC Advanced Technologies plc  
Annual report 2014
The Group’s commitment to environmental issues is reflected in this 
Annual Report which has been printed on Chorus Silk, made from FSC
®
 
certified materials. The report was printed in the UK by  using 
environmental printing technology, and vegetable-based inks were used 
throughout. Pureprint is a CarbonNeutral
®
 company. Both the manufacturing 
mill and the printer are registered to the Environmental Management System 
ISO14001 and are Forest Stewardship Council
®
 (FSC) chain-of-custody 
certified. The unavoidable carbon emissions generated during the manufacture 
and delivery of this document have been reduced to net zero through a verified 
carbon offsetting project. AMERICAS
KBC Advanced Technologies, Inc.
15021 Katy Freeway 
Suite 600 
Houston, TX 77094 
USA 
Tel: +1 281 293 8200
KBC Advanced Technologies, Inc.
4 Campus Drive 
2nd Floor South  
Parsippany, NJ 07054 
USA 
Tel: +1 973 889 8922
KBC Advanced Technologies, Inc.
3131 South Vaughn Way 
Suite 300 
Aurora, CO 80014 
USA 
Tel: +1 303 368 0300
KBC Advanced Technologies Canada Ltd
Suite 314 
333 11th Avenue SW 
Calgary 
Alberta T2R 1L9 
Canada 
Tel: +1 403 206 1533
ASIA-PACIFIC
KBC Advanced Technology Pte Ltd
435 Orchard Road #16-02/03 
Wisma Atria 
Singapore 238877 
Tel: +65 6735 5488
KBC Advanced Technologies (Beijing) Co Ltd
1903 Tower A 
China International Science & Technology 
Convention Center 
No. 12 Yumin Road 
Chaoyang District 
Beijing 100029 
People’s Republic of China 
Tel: +86 (0)10 8225 3838
KBC Advanced Technologies Sdn Bhd
Level 15 
Menara Darussalam No.12 
Jalan Pinang 
50450 Kuala Lumpur 
Malaysia 
Tel: +60 (3)2178 6344
KBC Advanced Technologies Private Ltd
C-Wing, Unit No.304 
Delphi CHS 
Hiranandani Gardens 
Powai, Mumbai 400076 
India 
Tel: +91 (0)22 6156 1700
KBC Process Technology Ltd
Japan Branch 
Nishi-Shimbashi YS Bldg 5F 
2–19–2 Nishi-Shimbashi 
Minato-ku 
Tokyo 105-0003 
Japan 
Tel: +81 (0)3 5777 6550
KBC Advanced Technologies Pty Ltd 
Level 29, The Forrest Centre 
221 St George’s Terrace 
Perth WA 6000 
Australia 
Tel: +61 894 80 3784
EUROPE, MIDDLE EAST AND NORTH AFRICA
KBC Process Technology Ltd
42–50 Hersham Road 
Walton on Thames KT12 1RZ 
UK 
Tel: +44 (0)1932 242 424
KBC Process Technology Ltd
4 Cheshire Avenue 
Lostock Gralam 
Northwich CW9 7UA 
UK 
Tel: +44 (0)1606 815 100
KBC Process Technology Ltd
93 Great Suffolk Street 
London SE1 0BX 
UK 
Tel: +44 (0)20 7357 0800
KBC Process Technology Ltd
Westmead House 
Farnborough GU14 7LP 
UK 
Tel: +44 (0)1252 372 321
KBC Process Technology Ltd
Netherlands Branch 
Willemstraat 26 
4811 AL Breda 
Netherlands 
Tel: +31 (0)76 531 6131
KBC Advanced Technologies S.L.
Avenida Diagonal, 613 4B 
08028 Barcelona 
Spain 
Tel: +34 (0)93 548 5000
KBC Process Technology Ltd
Representative office in Russia 
47 Bldg. 2, Office 302 
Leningradskiy Prospekt 
125167 Moscow 
Russia 
Tel: +7 495 980 8449
KBC Process Technology (Middle East) Ltd 
Abu Dhabi branch 
Office No 201 E, 2nd Floor 
Incubator Building 
P.O. Box 135079, Masdar City 
Abu Dhabi 
United Arab Emirates 
Tel: + 971 2 508 7300
KBC Process Technology Ltd
Bahrain branch 
Office 1144, Al Nakheel Tower  
11th Floor, Bldg 1074 
Road 3622, Block 436 
Seef District, Manama 
Kingdom of Bahrain 
Tel: + 973 1365 0087
KBC OFFICES
KBC Advanced Technologies plc
42–50 Hersham Road 
Walton on Thames KT12 1RZ 
UK
Tel: +44 (0)1932 242 424 
Email: info@kbcat.com 
Website: www.kbcat.com
KBC Advanced Technologies plc Annual report 2014