Security Research Group plc 
Annual Report and Accounts 2013 
  Business Review
Security Research Group at a Glance                                               1
Financial Performance Summary                                                       2
Chairman’s Statement                                                                          3
CEO’s Update                                                                                         4
Specialist Electronics                                                                            5
Property Information Services                                                            7
Packaging Solutions                                                                              7
Corporate Governance
Directors, Secretary and Advisors 9
Directors’ Report 10
Corporate Governance 13
Independent Auditors’ Report 14
Financial Statements
Consolidated Income Statement                                                      15
Consolidated Statement of Comprehensive Income                    15
Statements of Changes in Equity                                                     16
Consolidated Statement of Financial Position                               17
Company Statement of Financial Position                                      18
Statements of Cash Flows                                                                 19
Note to the Statements of Cash Flows                                            20
Notes to the Financial Statements                                                   21
Notice of Annual General Meeting                                                  38
Index
229432 Security Research AR pp01-pp07  24/07/2013  10:43  Page i Quality is never an accident.
It is always the result of high intention, sincere effort,
intelligent direction and skilful execution.
The Specialist Electronics Division
is the principal business of
Security Research Group plc. It has
been a market leader in the
design, development and
manufacture of innovative audio
surveillance, technical counter
surveillance and security products
for over 35 years under the
Audiotel brand.
Completing a £50 million UK
Armed Forces’ contract, on time
and within budget, for the design
and supply of a product which has
a world beating performance and
reflects the Division’s exceptional
level of skill, expertise and
commitment. 
The continuing focus for the Specialist Electronics Division is to track
ever‐changing threats globally, to identify, through continuous
Research and Development, appropriate countermeasures and to
provide market leading solutions that stay one step ahead of the field.
The Property Information Services Division supplies a comprehensive
range of residential and commercial property information reports to
legal and conveyancing professionals in England and Wales. 
The Packaging Solutions Division provides flexible packaging solutions
to a variety of industry sectors, including the food and
pharmaceutical markets.
Security Research Group plc Annual Report and Accounts 2013 1
Security Research Group at a Glance
SB NLJD Range Lightweight, powerful
detection of concealed electronics
(up to 10W)
World’s first NLJD archway for
protection of Intellectual Property
IEDs often contain
electronic components
229432 Security Research AR pp01-pp07  23/07/2013  15:48  Page 1                                                                                   2013       2012
                                                                                  £’000      £’000
            Specialist electronics                                6,765    11,635
            Property information services                    152         744
            Packaging solutions                                      302         273
            Head office                                                   (616)       (660)
            Operating profit                                        6,603    11,992
            Underlying earnings per share            23.24p    35.75p
            Basic earnings per share                       15.89p    19.76p
Security Research Group plc Annual Report and Accounts 2013 2
Financial Performance Summary
229432 Security Research AR pp01-pp07  23/07/2013  15:48  Page 2 Another year of strong turnover and excellent profit figures have been
achieved, although slightly down on last year. This year’s turnover at
£29,363,893 and last year’s at £37,272,645 were substantially better than
historical levels.
Profit before tax and exceptional items for the year was £6,682,042 compared
with a profit before tax and exceptional items of £12,070,793 in the prior year .
The substantial level of profits earned during the period is due to the
application of engineering, manufacturing and sales techniques in supplying
world beating products.
Shareholders will no doubt have welcomed the £15,191,577 returned to them
through two share buy backs in the year which, together with £3,083,155
returned to them in the previous year, equates to  £18,274,732, amounting to
94p per share based on the 19.4 million shares currently in issue. £5.4 million
cash was retained at the year end.
A two year MOD contract came to an end with all equipment delivered,
approved and accepted by this exacting customer.  Product deployment in
December 2012 was a satisfying end to two years of dedicated work. However,
changes in operational requirements for overseas forces, the impending
withdrawal of ISAF forces from Afghanistan and the change in tactics employed
by insurgents have resulted in a substantial reduction in the deployment of
our innovative and unique detector at present.
The Specialist Electronics Division has now been able to concentrate its
resource and effort on developing new products and markets, and to place
emphasis on a global sales drive. Reference is made in the financial statements
to a number of innovative devices having unique selling points. These products
are predominantly for use in non‐conflict situations and are being marketed
in the UK and in a number of other selected countries.
At the annual Distributor Conference held in Corby in April 2013, attended by
more than 30 Distributors from across the globe, these products were
launched and enthusiastically received.  
Property Information Services (PSG) and Packaging Solutions (Moore & Buckle)
both had a profitable year. 
We are grateful to the outstanding commitment and loyalty of our employees
who have been substantially responsible for the excellent achievements.
The Specialist Electronics Division is our main focus as it redevelops and re‐
energises its core marketplace supported by a dynamic marketing strategy.
The positive response it is receiving from potential customers can be attributed
to the rapid and cooperative dovetailing of the sales and engineering teams.
We look forward to reporting to shareholders the results of these initiatives in
due course.
Jonathan Mervis, Chairman                                                                 23 July 2013
Security Research Group plc Annual Report and Accounts 2013 3
Chairman’s Statement
£18.3m
Over two years
Sum paid back to
shareholders
through share
tender offers
£5.4m
Net cash held at
year end
23.24p
Underlying
earnings per share
229432 Security Research AR pp01-pp07  23/07/2013  15:48  Page 3 Specialist Electronics
The past year has seen changes to the Senior Management Team in the
Specialist Electronics Division.  
Damian Rowbotham, previously Finance Director for ComfortDelGro’s UK &
Ireland businesses, joined us in April 2012 as the Managing Director of Audiotel
International. In addition, Barney Hubble who was critical to the success of the
recent MOD contract, was appointed to the board as Business Development
Director during the year.  
Julie Brown (Resources Director) retired after 17 years dedicated service to
Audiotel and in recent months Debbie Braybrook (Finance Director) has moved
on to pastures new as part of a major re‐organisation of the team.  
We now have a stronger, more broadly experienced and focussed sales team
moving forward, which under the direction of the new Senior Management
Team, will bring the recently launched products to the global marketplace in
the current year.
During the MOD contract we operated from two separate premises in Corby,
but have recently merged all our operations in one centre.  This provides a
fully modern, well equipped factory and office complex ready to take on the
new challenges that will be presented in the years to come.
The end of the MOD contract has seen serious downsizing of the production
team and I would like to take the opportunity to thank all those staff who were
employed with us for their dedicated service during the last two years.
Property Information Services
The PSG team based in Barnsley, South Yorkshire, have performed well under
the supervision of Andrea Glover (Managing Director) in a very challenging
marketplace.
The PSG Franchisee Network continues to promote and market a
comprehensive selection of legal reports and services under the online PSG
Connect banner.  The unique combination of a truly national supplier with a
‘local’ service is the envy of its competitors.  
Packaging Solutions
The small Moore & Buckle team based in St Helens have remained stable and
continue to perform profitably in a niche marketplace.
Bernie Connor, Chief Executive                                                           23 July 2013
Security Research Group plc Annual Report and Accounts 2013 4
CEO’s Update
£29.4m
Consolidated
group revenue
£6.6m
Operating profit
before exceptional
items
52.2%
Gross Margin
229432 Security Research AR pp01-pp07  23/07/2013  15:48  Page 4 Overview
2013 was a year of two distinct parts for the Specialist Electronics Division.
The first part was all about delivery when the entire Division, and in particular
the production and technical teams, rose to the challenge of successfully
delivering the MOD contract, on time and on budget.  The second part was
focused on raising the company and brand profile, achieved through sales and
marketing activity and a raft of new product releases. The rebranding activity
and product innovation were very well received by our distribution network
and customer base. Turnover for the year was £23,566,245 compared with
£31,281,262 in the prior year. The operating profit before exceptional items
for the year was £6,765,220 compared with  an operating profit  before
exceptional items of £11,635,491 in the prior year.
Product and Technical Leadership
The conclusion of the MOD contract during the year allowed the technical
team to focus their expertise on new product development. The results have
been especially pleasing with our latest releases being not only world beating
in terms of performance, but also unique in their application. Our NLJD
Archway for electronics detection, a world first, has attracted a great deal of
interest, most significantly in Asia and Eastern Europe. Our new portable
Meeting Guard, released earlier this year, provides 24/7 real‐time protection
from eavesdropping, with remote monitoring if required, and once again is a
unique proposition generating a great deal of interest. We have a clear
roadmap for technical development with a range of innovative products in the
pipeline, which we are extremely excited about, and we continue to invest in
focused research to help preserve technical leadership in our field.
Manufacturing Excellence
Quality remains at the heart of our business and our global reputation has
certainly been strengthened through our work with the UK Government.
Following contract completion, the production team numbers were reduced,
but fortunately we were able to retain the most skilled and flexible staff for
the business going forward. Our capability has been substantially enhanced
over the last few years, with both facilities and skills markedly better . We now
boast the flexibility to be able to manufacture both highly complex low volume
electronic products and high volume batches as required. 
Sales Development 
One of our recent goals was to raise the division’s profile globally. This activity
commenced in earnest with a rebranding exercise, new marketing collateral and
importantly a refreshed website. These were successfully launched to our global
network of distributors in April 2013, together with our latest products and
technical roadmap. The distribution network has been energised by the speed
and quality of product development activity and also welcomed our increased
dynamism in supporting their sales efforts.
Security Research Group plc Annual Report and Accounts 2013 5
Specialist Electronics
£6.8m
Operating profit
35
Distributors
representing
Audiotel
worldwide
1,089
No. of individual
electronic
components that
make up an SB4
229432 Security Research AR pp01-pp07  23/07/2013  15:48  Page 5 Enhanced SB Range of NLJDs
Effectively locating concealed electronic devices.
The new Superbroom (SB) range is our latest advance in lightweight powerful
Non‐Linear Junction Detector (NLJD) technology.
A versatile device which incorporates the best elements from our 35 years of
developing NLJDs. SB is available in a range of output powers, 2W , 4W and 10W .
An Explosive Ordnance Disposal (EOD) variant is also available, which
incorporates a metal detector for increased target detection and discrimination.
Archway
Detecting concealed items. 
The Archway is the future in Intellectual Property theft protection. Specifically
designed using the advanced technology of Non‐Linear Junction Detection, it
is able to detect concealed devices even if they are turned off.
Suitable for detecting a wide range of electronic components and devices
including mobile phones, SIM cards, USB memory sticks, listening and recording
devices or cameras.
The Archway can be used as a conventional security‐style archway or, for a more
discreet approach, it can be supplied as a single panel. The versatility of the
Archway makes it an essential part of your security.
Meeting Guard
Meeting room protection.
The Meeting Guard provides a flexible solution for keeping meeting rooms,
office and public areas safe from eavesdropping.  Providing real‐time protection
from active devices as well as transmission from store and forward devices.
The Meeting Guard benefits from a compact and portable design that allows it
to be deployed easily with no additional infrastructure and minimal training.
Security Research Group plc Annual Report and Accounts 2013 6
Specialist Electronics New Products
229432 Security Research AR pp01-pp07  23/07/2013  15:48  Page 6 Review
Turnover for the Property Information Services division for the year was
£4,234,208 compared with £4,576,410 in the previous year . The operating profit
before exceptional items for the year was £152,244 compared with an operating
profit before exceptional items of £743,503 for the previous year. A goodwill
impairment  charge of £1,416,694 was incurred in the year which, in addition
to the £3,537,539 incurred in the previous year, reflects the fact that housing
transactions are unlikely to return to historic levels for some considerable time. 
Property Search Group and its network of franchisees continue to work in
harmony, presenting a nationwide brand revered and respected by the legal
community. There have been substantial improvements to the online ordering
platform that consistently scores top marks with PSG’s clients when compared
to other platforms supplied by its competitors.  In addition, internal IT systems
across the network have been updated to provide seamless, end‐to‐end delivery
of products that have improved service to clients, decreased administration
tasks, added additional quality controls and increased efficiency.  
Review
Moore & Buckle remained a stable, consistent performer in a very specialist
marketplace.
Turnover for the year was £1,563,440 compared with £1,414,973 in the previous
year. The operating profit before exceptional items for the year was £301,947
compared with an operating profit before exceptional items of £272,725 in the
previous year. A goodwill impairment charge of £287,058 was incurred in the
year which, in addition to £600,000 incurred in the previous year, reflects a
harsher business climate for this sector of the marketplace.
Security Research Group plc Annual Report and Accounts 2013 7
Property Information Services
Packaging Solutions
229432 Security Research AR pp01-pp07  23/07/2013  15:48  Page 7 Security Research Group plc Annual Report and Accounts 2013 8
Corporate Governance
&
Financial Statements
229432 Security Research AR pp08-pp14  23/07/2013  15:50  Page 8 Security Research Group plc Annual Report and Accounts 2013 9
directors, secretary and advisors 
directors
Jonathan Philip Mervis
Chairman 
John Arthur Warwick FCA
Finance Director
Tweedie McGarth Brown CBE
Deputy Chairman
Bernard Cavan Connor
Chief Executive 
John David Gawain Holme FCA
Non‐executive Director
All of whose business address is
133 Ebury Street, London SW1W 9QU
registered office
133 Ebury Street
London SW1W 9QU
company secretary
John Arthur Warwick FCA
auditors
Milsted Langdon LLP
Chartered Accountants
Winchester House
Deane Gate Avenue
Taunton
Somerset TA1 2UH
registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
nominated advisor and broker
W H Ireland Limited
24 Martin Lane
London EC4R 0DR
solicitors to the company
Irwin Mitchell LLP
2 Wellington Place
Leeds LS1 4BZ
principal bankers
Lloyds TSB Bank plc 
Corporate Markets
1st Floor
25 Gresham Street
London EC2V 7HN
229432 Security Research AR pp08-pp14  23/07/2013  15:50  Page 9 Security Research Group plc Annual Report and Accounts 2013 10
directors’ report
The directors present herewith their annual report and the audited financial statements for the year ended 31 March 2013.
principal activities
The principal activities of the Group are those of the manufacture and sale of specialist electronic equipment, the sale and
operation of property search franchises together with the provision of other property information services, and the manufacture of
flexible packaging products.
business review 
The business review forms part of the directors’ report. The principal activities of the Group, the business review and future
developments are all described in the chairman’s statement, the CEO’s update and divisional reports. 
results
The Group’s consolidated income statement for the year is set out on page 15 of the financial statements.
principal risks and uncertainties facing the Group
As far as our specialist electronics business is concerned turnover is generated from a mix of small and large orders. The timing of
the order placement and delivery of larger orders is inherently difficult to predict, potentially causing material fluctuations in actual
results compared with expectations. 
If the current situation in the property market changes it could affect the results of our property information business either
beneficially or detrimentally.  
Our packaging solutions business depends on small orders and could be affected by any change in the economic environment. 
dividends
The directors do not recommend payment of a dividend having already returned over £15m to shareholders during the year.
research and development
Audiotel International Limited continues its policy of investment in research and development in order to retain a competitive
position in its market.
purchase of own shares
Purchase of own shares during the year is referred to in the chairman’s statement and note 22 of the financial statements.
directors and their interests
The directors of the Company during the financial year were:
J P Mervis 
J A Warwick 
T M Brown 
B C Connor 
J D G Holme 
contracts for directors’ services and emoluments
The principal terms of the contracts entered into by directors for the provision of their services are summarised below:
                               Effective date of contract                                                Current annual     Notice period Director’s
                                                                                                                               remuneration                              position
                                                                                                                                                     £                              
J P Mervis             5 January 2006 as subsequently amended                              120,000           12 months Chairman
J A Warwick          5 January 2006 as subsequently amended                              120,000           12 months Finance Director
T M Brown            10 January 2005 as subsequently amended                              20,000             3 months Deputy Chairman
B C Connor           13 March 2012                                                                              150,000           12 months Chief Executive
J D G Holme         4 April 2008 as subsequently amended                                      20,000               1 month Non‐executive Director
Mr B C Connor is entitled to an annual performance bonus if Group operating profit targets are achieved.
229432 Security Research AR pp08-pp14  23/07/2013  15:50  Page 10 substantial shareholders
On 18 July 2013 the Company’s register of shareholders showed the following interests in 3% or more of the Company’s issued share
capital:
20p ordinary
shares %
Hawk Investment Holdings Limited 3,558,329 18.32
J P  Mervis 2,795,945 14.39
Artemis Investment Management Limited 1,830,902 9.42
Groundlinks Limited 1,437,882 7.40
Seraffina Holdings Limited 1,367,734 7.04
Retro Grand Limited 1,247,319 6.42
J R Davie 611,714 3.15
directors’ shareholdings
On 18 July 2013 the directors had the following interests in the Company’s issued share capital:
20p ordinary
shares %
J P  Mervis 2,795,945 14.39
B C Connor 449,657 2.31
J D G Holme 261,329 1.35
J A Warwick 255,132 1.31
T M Brown 206,837 1.06
payment of creditors
The Group’s policy in relation to all of its suppliers is to agree payment terms with individual suppliers in advance, and ensure that
these suppliers are aware of those terms and abide by such terms. 
The Group’s payment days as at 31 March 2013 for trade creditors were 40 days (2012: 48 days).
the environment 
The Group regards compliance with relevant environmental laws and the adoption of responsible standards as integral to its
business operation. It is also committed to introducing measures to limit any adverse effects its business may have on the
environment and will promote continuous improvement in accordance with the best available techniques. 
financial risk management
The principal financial risks to which the Group is exposed relate to liquidity and credit. The policies and strategies for managing
these risks are summarised as follows:
(a) liquidity risk
The Group actively maintains sufficient funds for current operations and planned expansions.
(b) credit risk
Credit risk refers to the risk that a counterparty will default on contractual obligations resulting in a financial loss to the Group. The
Group has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating financial risks from defaults.
Nevertheless risk has increased due to the current economic circumstances.
The Group’s principal financial assets are bank balances, cash and trade receivables. The Group has no significant concentration of
credit risk with exposure spread over a large number of customers. Credit risk is managed by monitoring the aggregate amount and
duration of exposure to any one customer depending upon their credit rating. The amounts presented in the statement of financial
position are net of allowances for doubtful debts, estimated by the Group’s management, based on prior experience and their
assessment of the current economic environment. 
Security Research Group plc Annual Report and Accounts 2013 11
directors’ report
229432 Security Research AR pp08-pp14  23/07/2013  15:50  Page 11 directors’ indemnities
The Group has taken out third party indemnity insurance for the benefit of the directors during the year which remains in force at
the date of this report.
directors’ responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and
regulations.
The directors are required under company legislation to prepare financial statements for each financial year. Under that law the
directors have elected to prepare the Group and Company financial statements in accordance with International Financial Reporting
Standards (IFRSs) as adopted by the European Union. 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 Company and the Group’s profit or
loss for that year. In preparing these financial statements, 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 applicable IFRSs as adopted by the European Union have been followed, subject to any material departures
disclosed and explained in the financial statements; and
•        prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Group will continue in
business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group’s
transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable
them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the
assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 
The directors have reasonable expectations that the Group has adequate resources to continue in operational existence for the
foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
The directors are responsible for ensuring that the annual report includes information required by the AIM Rules. 
The maintenance and integrity of the corporate and financial information on the Group’s website is the responsibility of the
directors. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from
legislation in other jurisdictions.
The Board’s statement on corporate governance is set out on page 13.
auditors
A resolution proposing that Milsted Langdon LLP be re‐appointed as auditors of the Company will be put to the Annual General
Meeting.
There is no relevant audit information of which the Company’s auditors are unaware, and the directors have taken all the steps that
they ought to have taken to make themselves aware of any relevant audit information and to establish that the Company’s auditors
are aware of that information.
By order of the Board
John Warwick
Company Secretary
23 July 2013 
Security Research Group plc Annual Report and Accounts 2013 12
directors’ report
229432 Security Research AR pp08-pp14  23/07/2013  15:50  Page 12 Being a Company whose shares are admitted to AIM, the Company is not a listed company and therefore is not required to comply
with the UK Corporate Governance Code. The Board has however adopted the following:
board committees
The Board has two sub‐committees, the Audit Committee and the Remuneration Committee, both of which include the Finance
Director.
audit committee
The Audit Committee is chaired by J D G Holme FCA, with its other member being J A Warwick FCA. Any director may attend by
invitation. The external auditors may be invited to attend the meetings and have direct access to members of the Committee. The
Audit Committee may examine any matters relating to the financial affairs of the Group including reviews of the annual and interim
financial statements, announcements, internal control procedures and accounting policies. 
remuneration committee
The Remuneration Committee, which is chaired by J D G Holme FCA, reviews the performance of the executive directors, considers
and approves all Board and senior executive appointments, remuneration and benefits including share options and service
contracts. J A Warwick FCA is the other member of the Committee.
internal financial control
The directors are responsible for the Group’s system of internal financial control. A system can only provide reasonable and not
absolute assurance regarding:
•        the safeguarding of assets against unauthorised use or disposition;
•        the minimisation of risk of material loss whilst in pursuit of the Group’s business objectives; and 
•        the maintenance of proper accounting records and the reliability of financial information within the business or for
publication.
Due to the size of the Group, a key control procedure during the year was the close day‐to‐day supervision by the executive
directors.
auditor independence
The Audit Committee reviews the services provided by the external auditors at least on an annual basis. This review includes
consideration of the confirmation of independence which the external auditors provide to the Company on an annual basis and of
the services which they provide to the Group, in order to ensure that their independence is not compromised.
relations with shareholders
The directors seek to ensure that all shareholders are kept informed about the Group and its activities. A comprehensive annual
report and financial statements and an interim report are sent to shareholders and there is frequent dialogue with institutional
investors. The Annual General Meeting provides shareholders with the opportunity to meet and question directors. Details of the
resolutions to be proposed at the Annual General Meeting, to be held on 29 August 2013, are set out in the notice of Annual
General Meeting which is attached to this report.
going concern
The directors consider, after making appropriate enquiries, that the Company and Group have adequate resources to continue in
operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the
financial statements. 
Security Research Group plc Annual Report and Accounts 2013 13
corporate governance
229432 Security Research AR pp08-pp14  23/07/2013  15:50  Page 13 We have audited the financial statements of Security Research Group plc for the year ended 31 March 2013 which comprise the
Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Group and Parent Company
Statements of Changes in Equity, the Group and Parent Company Statements of Financial Position, the Group and Parent Company
Statements of Cash Flows, and the related notes. The financial reporting framework that has been applied in their preparation is
applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union and, as regards the Parent
Company financial statements, as applied in accordance with the provisions of the Companies Act 2006. 
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 directors’ responsibilities statement set out on page 12 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 Auditing Practices Board’s Ethical Standards for Auditors. 
scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable
assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an
assessment of: whether the accounting policies are appropriate to the Group’s and Parent Company’s circumstances and have been
consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and
the overall presentation of the financial statements. In addition we read all the financial and non‐financial information in the
directors’ report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent
material misstatements or inconsistencies we consider the implications for our report.
opinion on financial statements
In our opinion:
–        the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at
31 March 2013 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 financial statements have been properly prepared in accordance with IFRSs as adopted by the European
Union and as applied in accordance with the provisions of the Companies Act 2006; 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 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:
Under the Companies Act 2006 we are required 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.
Mr Nigel Fry (Senior Statutory Auditor)
For and on behalf of  Milsted Langdon LLP
Chartered Accountants and Statutory Auditors
Taunton
23 July 2013
Security Research Group plc Annual Report and Accounts 2013 14
independent auditors’ report to the members of Security Research Group plc
For the year ended 31 March 2013
229432 Security Research AR pp08-pp14  23/07/2013  15:50  Page 14 Security Research Group plc Annual Report and Accounts 2013 15
consolidated income statement
For the year ended 31 March 2013
2013 2012
Note £ £
Revenue 2 29,363,893 37,272,645
Cost of sales (14,045,747) (16,733,938)
Gross profit 15,318,146 20,538,707
Administrative expenses (8,715,130) (8,547,204)
Operating profit before exceptional items 6,603,016 11,991,503
Exceptional administrative expenses 3 (1,703,752) (4,137,539)
Operating profit 4 4,899,264 7,853,964
Finance costs 8 (10,929) –
Finance income 9 89,955 79,290
Profit on ordinary activities before taxation 4,978,290 7,933,254
Income tax expense 10 (1,295,735) (2,823,233)
Profit on ordinary activities after taxation 3,682,555 5,110,021
Basic earnings per share 12 15.89p 19.76p
Diluted earnings per share 12 15.74p 19.57p
The consolidated income statement has been prepared on the basis that all operations are continuing operations. 
consolidated statement of comprehensive income
For the year ended 31 March 2013
The profit on ordinary activities after taxation represents the Group’s total comprehensive income for the year.
The notes on pages 21 to 37 form part of these financial statements. 
229432 Security Research AR pp15-pp20  23/07/2013  15:51  Page 15 Security Research Group plc Annual Report and Accounts 2013 16
statements of changes in equity
For the year ended 31 March 2013
Capital
Share Share redemption Retained
capital premium reserve earnings Total equity
Group £££££
At 1 April 2011 5,506,648 5,250 – 10,927,975 16,439,873
Issue of new ordinary shares on exercise of options 267,778 432,222 – – 700,000
Purchase of ordinary share capital (including costs 
of £71,195) – – – (3,083,155) (3,083,155)
Cancellation of own shares (626,313) – 626,313 – –
Total comprehensive income for the year – – – 5,110,021 5,110,021
At  31 March 2012 5,148,113 437,472 626,313 12,954,841 19,166,739
Issue of new ordinary shares on exercise of options 76,190 114,286 – – 190,476
Purchase of ordinary share capital (including costs 
of £127,393) – – – (15,191,577) (15,191,577)
Cancellation of own shares (1,339,038) – 1,339,038 – –
Total comprehensive income for the year – – – 3,682,555 3,682,555
At  31 March 2013 3,885,265 551,758 1,965,351 1,445,819 7,848,193
Capital
Share Share redemption Retained
capital premium reserve earnings Total equity
Company £££££
At  1 April 2011 5,506,648 5,250 – 7,465,232 12,977,130
Issue of new ordinary shares on exercise of options 267,778 432,222 – – 700,000
Purchase of ordinary share capital (including costs 
of £71,195) – – – (3,083,155) (3,083,155)
Cancellation of own shares (626,313) – 626,313 – –
Total comprehensive income for the year – – – 1,859,548 1,859,548
At  31 March 2012 5,148,113 437,472 626,313 6,241,625 12,453,523
Issue of new ordinary shares on exercise of options 76,190 114,286 – – 190,476
Purchase of ordinary share capital (including costs 
of £127,393) – – – (15,191,577) (15,191,577)
Cancellation of own shares (1,339,038) – 1,339,038 – –
Total comprehensive income for the year – – – 9,025,624 9,025,624
At  31 March 2013 3,885,265 551,758 1,965,351 75,672 6,478,046
The notes on pages 21 to 37 form part of these financial statements. 
229432 Security Research AR pp15-pp20  23/07/2013  15:51  Page 16 Security Research Group plc Annual Report and Accounts 2013 17
consolidated statement of ﬁnancial position
As at 31 March 2013
2013 2012
Note ££ ££
Non‐current assets 
Goodwill 13 3,273,142 4,976,894
Other intangible assets 14 627,271 688,357
Property, plant and equipment 15 411,514 1,581,020
Deferred tax asset 20 312,101 125,047
4,624,028 7,371,318
Current assets
Inventories 18 1,189,318 1,312,635
Trade and other receivables 19 2,721,402 7,222,481
Cash and cash equivalents 5,397,860 17,268,743
9,308,580 25,803,859
Current liabilities
Trade and other payables 21 (5,666,328) (11,171,152)
Current tax liability (418,087) (2,837,286)
(6,084,415) (14,008,438)
Net current assets 3,224,165 11,795,421
Net assets 7,848,193 19,166,739
Represented by:
Capital and reserves attributable to equity holders
Called up share capital 22 3,885,265 5,148,113
Share premium account 551,758 437,472
Capital redemption reserve 1,965,351 626,313
Retained earnings 1,445,819 12,954,841
Total equity 7,848,193 19,166,739
Approved by the Board on 23 July 2013.
Jonathan Mervis
Director
John Warwick
Director
The notes on pages 21 to 37 form part of these financial statements.  
229432 Security Research AR pp15-pp20  23/07/2013  15:51  Page 17 2013 2012
Note ££ ££
Non‐current assets
Property, plant and equipment 15 34,379 36,090
Investments in subsidiaries 16 6,650,322 8,354,074
6,684,701 8,390,164
Current assets
Trade and other receivables 19 43,802 15,472
Cash and cash equivalents 1,097,303 4,896,244
1,141,105 4,911,716
Current liabilities
Trade and other payables 21 (1,292,760) (848,357)
Current tax payable (55,000) –
(1,347,760) (848,357)
Net current (liabilities)/assets (206,655) 4,063,359
Net assets 6,478,046 12,453,523
Represented by:
Capital and reserves attributable to equity holders
Called up share capital 22 3,885,265 5,148,113
Share premium account 551,758 437,472
Capital redemption reserve 1,965,351 626,313
Retained earnings 75,672 6,241,625
Total equity 6,478,046 12,453,523
Approved by the Board on 23 July 2013.
Jonathan Mervis
Director
John Warwick
Director
The notes on pages 21 to 37 form part of these financial statements. 
Security Research Group plc Annual Report and Accounts 2013 18
company statement of ﬁnancial position
As at 31 March 2013
229432 Security Research AR pp15-pp20  23/07/2013  15:51  Page 18 Group Company
                                                                                                                                          2013                    2012                    2013 2012
                                                                                                                                                 £                          £                          £ £
Cash flows from operating activities                                                                                                                                            
Profit before taxation                                                                                           4,978,290           7,933,254           9,080,624 1,859,548
Adjustments for:
Depreciation of property, plant and equipment                                             1,417,963           1,303,116                  4,749 6,379
Amortisation of goodwill/investment write down                                          1,703,752           4,137,539           1,703,752 4,137,539
Amortisation of other intangible assets                                                               533,392              367,196                          – –
Profit on disposal of tangible assets                                                                        (7,485)                (2,337)                         – –
Interest expense                                                                                                         10,929                          –                          – –
Interest receivable                                                                                                    (89,955)              (79,290)                (9,727) (10,963)
Dividends receivable                                                                                                            –                          –       (10,321,530) (6,370,260)
Changes in working capital:                                                                                                                                                            
Decrease/(increase) in receivables                                                                    4,501,079         (3,148,309)             (28,330) 2,720
Decrease/(increase) in inventories                                                                        123,317             (163,109)                         – –
(Decrease)/increase in payables                                                                       (5,504,824)         8,767,987              444,403 393,138
Cash generated from operations                                                                        7,666,458        19,116,047              873,941 18,101
Interest paid                                                                                                               (10,929)                         –                          – –
Income tax paid                                                                                                   (3,901,988)           (163,799)                         – –
Net cash generated from operating activities                                                  3,753,541        18,952,248              873,941 18,101
Cash flows from investing activities                                                                                                                                             
Purchase of tangible assets                                                                                   (287,729)        (2,052,547)                (3,038) (847)
Purchase of other intangible assets                                                                     (472,306)           (559,095)                         – –
Proceeds from the sale of tangible assets                                                              46,757                74,115                          – –
Dividends received                                                                                                               –                          –        10,321,530 6,370,260
Interest received                                                                                                         89,955                79,290                  9,727 10,963
Net cash (used in)/generated from investing activities                                    (623,323)        (2,458,237)       10,328,219 6,380,376
Cash flows from financing activities                                                                                                                                             
Issue of share capital                                                                                               190,476              700,000              190,476 700,000
Purchase of own shares                                                                                   (15,191,577)        (3,083,155)      (15,191,577) (3,083,155)
Net cash used in financing activities                                                              (15,001,101)        (2,383,155)      (15,001,101) (2,383,155)
Net (decrease)/increase in cash and cash equivalents                               (11,870,883)       14,110,856         (3,798,941) 4,015,322
Cash and cash equivalents at beginning of period                                        17,268,743           3,157,887           4,896,244 880,922
Cash and cash equivalents at end of period                                                     5,397,860        17,268,743           1,097,303 4,896,244
The notes on pages 21 to 37 form part of these financial statements.
Security Research Group plc Annual Report and Accounts 2013 19
statements of cash ﬂows
For the year ended 31 March 2013
229432 Security Research AR pp15-pp20  23/07/2013  15:51  Page 19 analysis of net funds
                                                                                                                                                                            At                             At 
                                                                                                                                                                     1 April                    Cash 31 March
                                                                                                                                                                       2012                     flow 2013
Group                                                                                                                                                                   £                          £ £
                               
Cash and cash equivalents                                                                                                             17,268,743       (11,870,883) 5,397,860
                                                                                                                                                            17,268,743       (11,870,883) 5,397,860
                                                                                                                                                                            At                             At
                                                                                                                                                                     1 April                    Cash 31 March
                                                                                                                                                                       2012                     flow 2013
Company                                                                                                                                                             £                          £ £
                               
Cash and cash equivalents                                                                                                                4,896,244         (3,798,941) 1,097,303
                                                                                                                                                              4,896,244         (3,798,941) 1,097,303
The notes on pages 21 to 37 form part of these financial statements. 
Security Research Group plc Annual Report and Accounts 2013 20
note to the statements of cash ﬂows
For the year ended 31 March 2013
229432 Security Research AR pp15-pp20  23/07/2013  15:51  Page 20 Security Research Group plc Annual Report and Accounts 2013 21
notes to the ﬁnancial statements
For the year ended 31 March 2013
1. accounting policies 
Security Research Group plc, company number 03170812, is domiciled and incorporated in England under the Companies Act 1985. 
The financial statements have been prepared in accordance with applicable International Financial Reporting Standards (IFRSs),
International Accounting Standards (IAS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations
adopted for use by the European Union (EU) and with those parts of the Companies Act 2006 applicable to companies reporting
under IFRSs. The financial statements have been prepared under the historical cost convention.
There were no new standards or interpretations that have been adopted by the Group in the current period.
There are no interpretations and amendments to existing standards that have been issued but are not yet effective that will have a
material impact on the financial statements and have not been early adopted by the Group. 
The preparation of financial statements in accordance with IFRSs requires management to make judgements, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Although
these estimates are based on management’s best knowledge of the amount, event or actions, actual results ultimately may differ
from those estimates.
The directors have used significant judgements relating to assumptions concerning goodwill. 
The Group is required to test, at least annually, whether goodwill has suffered any impairment. The recoverable amount is
determined based on value in use calculations. The use of this method requires the estimation of future cash flows and the choice
of a suitable discount rate in order to calculate the present value of these cash flows. 
The following accounting policies have been used consistently in dealing with items which are considered material in relation to the
Group’s financial statements:
(a) consolidation
The consolidated financial statements include those of the Company and its subsidiaries from their date of acquisition. All
acquisitions of subsidiaries have been accounted for under the acquisition method of accounting.
Under Section 408 of the Companies Act 2006, the Company is exempt from the requirement to present its own income statement.
(b) revenue
Revenue represents amounts receivable for goods, services and set up costs in respect of installation of production facilities net of
VAT and discount and intra‐Group transactions.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group, it can be reliably measured
and the following criteria are met:
(i) sale of goods
Sale of goods are recognised when risks and rewards of ownership of the goods have passed to the customer. Certain income is
recognised on a milestone basis subject to meeting the criteria as stated within the relevant contract.
(ii) rendering of services
Rendering of services are recognised in the accounting period in which the services are rendered, by reference to completion of the
specific transaction.
(iii) set up costs
Set up costs are recognised evenly over the life of the relevant contract.
229432 Security Research AR pp21-pp40  23/07/2013  15:53  Page 21 Security Research Group plc Annual Report and Accounts 2013 22
notes to the ﬁnancial statements
For the year ended 31 March 2013
1. accounting policies (continued)
(c) property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and impairment costs. 
Depreciation is provided to write‐off the cost less estimated residual value (based on prices prevailing at the date of acquisition) in
annual instalments over the estimated useful economic lives of the assets. The depreciation rates used are as follows:
Freehold buildings 2% straight line
Leasehold property Straight line over the life of the lease/life of contract
Fixtures, fittings and equipment 15% ‐ 33.3% straight line/life of contract 
Motor vehicles 25% ‐ 40% straight line 
(d) investments
Investments in subsidiary companies are valued at cost less provision for diminution in value.
(e) goodwill
Goodwill represents the difference between the fair value of the consideration paid on the acquisition of a business and the fair
value of the identifiable net assets acquired. 
Goodwill arising on acquisitions is capitalised and subjected to annual impairment reviews. Any excess of goodwill over the value in
use of the underlying assets is written off to the income statement. The directors consider that the goodwill has an infinite life.
(f) foreign currency translation
Items included in the financial statements are measured using the currency of the primary economic environment in which the
entity operates (the ‘functional currency’). The financial statements are presented in pounds sterling, which is the functional and
presentational currency.
The Group has foreign currency transactions arising from the sales and purchases by an operating subsidiary in a currency other
than the subsidiary’s functional currency. Under the Group’s foreign exchange policy, such transactions are recorded at the rate of
exchange prevailing at the transaction date. 
Assets and liabilities in foreign currencies are translated into sterling at the rate of exchange ruling at the end of the financial year.
All exchange differences are dealt with in the income statement.
(g) leasing
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
(h) deferred tax 
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for
taxation and accounting purposes.
The deferred tax balance has not been discounted.
(i) liquid resources
Liquid resources are defined as short term bank deposits and cash in hand.
(j) development expenditure and web design costs
Development expenditure and web design costs which meet the criteria for capitalisation, shown as other intangible assets, are
written off over the period for which they are estimated to benefit future profitability of the Group but for no longer than 3 years.
(k) inventories
Inventories are stated at the lower of cost and net realisable value using the First In First Out (FIFO) cost basis. Costs include all
direct costs incurred in bringing the inventories to their present location and condition, including where appropriate, a proportion of
manufacturing overheads. 
(l) pensions
The pension costs charged represent the contribution payable by the Group in the year. 
229432 Security Research AR pp21-pp40  23/07/2013  15:53  Page 22 Security Research Group plc Annual Report and Accounts 2013 23
notes to the ﬁnancial statements
For the year ended 31 March 2013
1. accounting policies (continued)
(m) share based payments
The Group issues equity‐settled share based payments to certain directors. Equity‐settled share based payments are measured at
fair value (excluding the effect of non market‐based vesting conditions) at the date of grant. The fair value determined at the grant
date of the equity‐settled share based payments is expensed on a straight‐line basis over the vesting period, based on the Group’s
estimate of shares that will eventually vest and with a corresponding adjustment to equity.
Fair value is measured by use of the Black‐Scholes option pricing model. The expected life used in the model has been adjusted,
based on management’s best estimate, for the effects of non‐transferability, exercise restrictions, and behavioural considerations.
2. segmental analysis
Business analysis
                                                                                                             2013                                                                              2012
                                                                                                                          Net operating                                                          Net operating
                                                                                                    Operating               assets/                                        Operating assets/
                                                                         Revenue        profit/(loss)         (liabilities)            Revenue         profit/(loss) (liabilities)
                                                                                       £                          £                          £                          £                          £ £
Specialist electronics                                23,566,245           6,765,220         (1,512,271)       31,281,262        11,635,491 (3,852,455)
Property information services                  4,234,208              152,244           2,934,992           4,576,410              743,503 3,994,679
Packaging solutions                                    1,563,440              301,947           1,964,075           1,414,973              272,725 2,214,121
Head office                                                                   –             (616,395)           (936,463)                         –             (660,216) (458,349)
                                                                     29,363,893           6,603,016           2,450,333        37,272,645        11,991,503 1,897,996
Exceptional items                                                       –         (1,703,752)                         –                          –         (4,137,539) –
                                                                     29,363,893           4,899,264           2,450,333        37,272,645           7,853,964 1,897,996
                                                                  –––––––––––––––––––––––––––                                   –––––––––––––––––––––––––––
Interest bearing assets                                                                                         5,397,860                                                          17,268,743
                                                                                                                       –––––––––––––                                                        –––––––––––––
Net assets                                                                                                               7,848,193                                                          19,166,739
                                                                                                                       –––––––––––––                                                        –––––––––––––
Revenue of specialist electronics and packaging solutions is represented by the sale of goods and revenue of property information
services is represented by services rendered.
The activities of the Group are the manufacture and sale of specialist electronic equipment, the sale and operation of property
search franchises and the manufacture of flexible packaging products. 
The specialist electronics business had one customer (2012: one) with revenue in excess of 10% of Group revenue.
229432 Security Research AR pp21-pp40  23/07/2013  15:53  Page 23 2. segmental analysis (continued)
Net operating assets analysis
                                                                                                             2013                                                                              2012
                                                                                                                               Segmental                                                          Segmental
                                                                                                                          net operating                                                          net operating
                                                                      Segmental         Segmental               assets/          Segmental          Segmental assets/
                                                                              assets            liabilities           (liabilities)                assets             liabilities (liabilities)
                                                                                       £                          £                          £                          £                          £ £
Specialist electronics                                  2,151,068         (3,663,339)        (1,512,271)         8,449,906       (12,302,361) (3,852,455)
Property information services                  4,110,925         (1,175,933)         2,934,992           5,004,475         (1,009,796) 3,994,679
Packaging solutions                                    2,237,563             (273,488)         1,964,075           2,431,689             (217,568) 2,214,121
Head office                                                        68,542         (1,005,005)           (936,463)               51,561             (509,910) (458,349)
                                                                       8,568,098         (6,117,765)         2,450,333        15,937,631       (14,039,635) 1,897,996
Additions to non‐current assets and non‐cash expenses
                                                                                                             2013                                                                              2012
                                                                   Additions to     Depreciation                                    Additions to     Depreciation 
                                                                   non‐current                      and                                    non‐current                      and
                                                                              assets     amortisation       Impairment                  assets      amortisation Impairment
                                                                                       £                          £                          £                          £                          £ £
Specialist electronics                                     536,463         (1,750,440)                         –           2,417,224         (1,464,795) –
Property information services                     218,334             (159,700)        (1,416,694)             163,580             (169,026) (3,537,539)
Packaging solutions                                            2,200               (28,981)           (287,058)               29,991               (27,775) (600,000)
Head office                                                           3,038                 (4,749)                         –                      847                 (6,379) –
                                                                           760,035         (1,943,870)        (1,703,752)         2,611,642         (1,667,975) (4,137,539)
Geographical information
The Group operates in 4 main geographical areas although they are managed on a worldwide basis. Revenue is split as follows: 
                                                                                                                                                                                                    2013 2012
                                                                                                                                                                                                           £ £
United Kingdom                                                                                                                                                            28,833,233 36,716,527
Asia and Middle East                                                                                                                                                          226,482 213,796
Europe                                                                                                                                                                                  241,836 127,427
Other                                                                                                                                                                                       62,342 214,895
                                                                                                                                                                                         29,363,893 37,272,645
3. exceptional administrative expenses
                                                                                                                                                                                                    2013 2012
                                                                                                                                                                                                           £ £
Goodwill impairment charge – property information services                                                                               1,416,694 3,537,539
Goodwill impairment charge – packaging solutions                                                                                                    287,058 600,000
                                                                                                                                                                                           1,703,752 4,137,539
There is no tax effect of the above exceptional administrative expenses.
Security Research Group plc Annual Report and Accounts 2013 24
notes to the ﬁnancial statements
For the year ended 31 March 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:53  Page 24 4. operating profit
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
Operating profit is stated after charging/(crediting):
Auditors’ remuneration:
– audit                                                                                                                                                                             92,180 91,508
– tax services                                                                                                                                                                   4,500 4,605
Depreciation                                                                                                                                                            1,417,963 1,303,116
Amortisation of other intangible assets                                                                                                                 533,392 367,196
Profit on disposal of fixed assets                                                                                                                                (7,485) (2,337)
(Profit)/loss on exchange differences                                                                                                                              (48) 1,756
Operating lease rentals:
– plant and machinery                                                                                                                                                 15,206 –
– other assets                                                                                                                                                              427,101 355,026
Exceptional administrative expenses – Note 3                                                                                                  1,703,752 4,137,539
Research and development                                                                                                                                      720,018 523,139
Remuneration for audit services payable to Milsted Langdon LLP amounted to £30,000 (2012: £30,000) and tax compliance services
fees amounted to £2,000 (2012: £2,000).
The auditors’ remuneration for audit services includes £24,665 (2012: £24,268) attributable to the audit of Audiotel International
Limited and Security Research Limited; £9,090 (2012: £8,990) attributable to the audit of Rochdale Development Company Limited
and Moore & Buckle (Flexible Packaging) Limited; £24,750 (2012: £24,750) attributable to the audit of PSG Franchising Limited, PSG
Yorkshire Limited, PSG Energy Limited and PSG Financial Services Limited and £3,675 (2012: £3,500) attributable to the audit of
Ufford PCC Limited, subsidiaries of Security Research Group plc which are not audited by the Group’s principal auditors. The
auditors’ remuneration for non‐audit services includes £2,000 (2012: £2,000) payable to the auditors of Audiotel International
Limited and Security Research Limited and £500 (2012: £605) payable to the auditors of Rochdale Development Company Limited
and Moore & Buckle (Flexible Packaging) Limited. 
5. staff costs
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
Staff costs are as follows:
Wages and salaries                                                                                                                                                 6,626,415 6,118,966
Social security costs                                                                                                                                                   649,224 672,452
Pension contributions                                                                                                                                                103,716 68,683
                                                                                                                                                                                    7,379,355 6,860,101
The average number of persons employed by the Group including directors was:
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                      Number Number
Administration                                                                                                                                                                      22 22
Production                                                                                                                                                                           153 120
Research and development                                                                                                                                                12 10
Sales and marketing                                                                                                                                                               6 6
                                                                                                                                                                                               193 158
Security Research Group plc Annual Report and Accounts 2013 25
notes to the ﬁnancial statements
For the year ended 31 March 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:53  Page 25 6. pension costs
The Group operates a defined contribution pension scheme in respect of its directors and employees. The scheme and its assets are
held by independent managers. The pension charge represents contributions due from the Group and amounted to £103,716 (2012:
£68,683).
7. directors’ remuneration
                                                                                                                                             Pension               Other                 2013                 2012
                                                                                            Salary               Bonus    contribution           benefits                 Total                 Total
                                                                                                    £                        £                        £                        £                        £                        £
Executive directors
J P Mervis                                                                      120,000              40,000                        –                        –           160,000           170,000
J A Warwick                                                                  120,000              25,000                        –                        –           145,000           150,000
T M Brown                                                                       20,000              25,000                1,000                1,084              47,084              53,924
B C Connor                                                                    150,000           550,000                        –              15,468           715,468           762,554
Non‐executive directors
J D G Holme                                                                    20,000              10,000                        –                        –              30,000              32,000
                                                                                        430,000           650,000                1,000              16,552        1,097,552        1,168,478
Two directors, J A Warwick and T M Brown, exercised share options during the year (2012: J P Mervis and B C Connor). 
The aggregate gains made by the exercise of share options in the year was £276,190 (2012: £63,832).
8. finance costs
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
Interest on late payment of corporation tax                                                                                                          (10,929) –
9. finance income
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
Bank interest                                                                                                                                                                 89,955 79,290
10. income tax expense
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
UK corporation tax at 24% (2012: 26%)                                                                                                              1,522,909 3,025,907
Over‐provision in prior year                                                                                                                                      (40,120) (32,492)
Current tax expense                                                                                                                                                1,482,789 2,993,415
Deferred tax credit                                                                                                                                                    (187,054) (170,182)
                                                                                                                                                                                    1,295,735 2,823,233
Security Research Group plc Annual Report and Accounts 2013 26
notes to the ﬁnancial statements
For the year ended 31 March 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:53  Page 26 10. income tax expense (continued)
The tax for the year is higher than the standard rate of corporation tax in the UK of 24% (2012: 26%). The differences are explained
below:
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
Profit on ordinary activities before taxation                                                                                                      4,978,290 7,933,254
Profit on ordinary activities multiplied by standard rate of corporation
tax in the UK of 24% (2012: 26%)                                                                                                                         1,194,790 2,062,646
Effects of:
Expenses not deductible for tax purposes                                                                                                               72,050 22,708
Depreciation (less than)/more than capital allowances                                                                                       (11,722) 20,788
Impairment charge not deductible for tax purposes                                                                                           384,303 1,075,760
Marginal rate relief and lower tax rate in other jurisdictions                                                                              (11,748) (25,053)
Research and development relief                                                                                                                          (246,403) (236,485)
Over‐provision in prior year                                                                                                                                      (40,120) (32,492)
Other tax adjustments                                                                                                                                                (45,415) (64,639)
                                                                                                                                                                                    1,295,735 2,823,233
The Group has a carried forward loss for capital gains purposes amounting to £2,776,540 (2012: £2,776,540). 
11. profit of Parent Company
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
Profit on ordinary activities after taxation                                                                                                          9,025,624 1,859,548
12. earnings per share
Basic earnings per share is calculated on the Group profit after tax for the financial year of £3,682,555 (2012: £5,110,021) and on
23,173,628 ordinary shares, being the weighted average number of shares in issue in the year (2012: 25,865,197). Diluted earnings
per share is calculated on the Group profit for the financial year and on 23,401,480 ordinary shares, being the weighted average
number of shares in issue during the year adjusted to take account of shares under option (2012: 26,113,614). 
Security Research Group plc Annual Report and Accounts 2013 27
notes to the ﬁnancial statements
For the year ended 31 March 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:53  Page 27 13. goodwill
Group                                                                                                                                                                                          £
Cost
At 1 April 2011                                                                                                                                                                           14,627,755
Additions                                                                                                                                                                                    –
At 31 March 2012                                                                                                                                                                      14,627,755
Additions                                                                                                                                                                                    –
At 31 March 2013                                                                                                                                                                     14,627,755
Impairment
At 1 April 2011                                                                                                                                                                           5,513,322
Charge for year                                                                                                                                                                          4,137,539
At 31 March 2012                                                                                                                                                                      9,650,861
Charge for year                                                                                                                                                                          1,703,752
At 31 March 2013                                                                                                                                                                     11,354,613
Net book value
At 31 March 2013                                                                                                                                                                     3,273,142
At 31 March 2012                                                                                                                                                                      4,976,894
Goodwill acquired through acquisition has been allocated to individual cash generating units (‘CGUs’) for impairment testing. These
are independent income streams and represent the lowest level within the Group at which the associated goodwill is monitored for
management purposes. The carrying value of goodwill is as follows:
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
Specialist electronics                                                                                                                                                    73,142 73,142
Property information services                                                                                                                              2,000,000 3,416,694
Packaging solutions                                                                                                                                                1,200,000 1,487,058
                                                                                                                                                                                    3,273,142 4,976,894
Cumulative goodwill written off against reserves is £11,354,613 (2012: £9,650,861).
Goodwill written off during the year amounted to £1,416,694 (2012: £3,537,539) relating to the goodwill of the property
information services business and £287,058 (2012: £600,000) relating to the packaging solutions business. In the case of property
information services this reflects the fact that the level of housing transactions are unlikely to return to their previous levels for
some considerable time and in the case of the packaging solutions business reflects the harsher climate for businesses in general. 
Goodwill is reviewed annually or when other events or changes in circumstances indicate that the carrying amount may not be fully
recoverable. The recoverable amount of a CGU is determined based on value in use calculations. These calculations use pre‐tax cash
flow projections based on financial budgets approved by management covering a five year period. Cash flows beyond this five year
period are extrapolated using a growth rate of up to 2.25% which does not exceed the long term average growth for the United
Kingdom. The key assumptions in these calculations are as follows:    
–        The achievement of budgeted operating profit over the next 5 years (2012: 5 years).
–        A growth rate of up to 2.25% for the final 5 years (2012: 2.25%).
–        The cash flows were discounted using a pre‐tax discount rate of 5.0% (2012: 5.0%).
Security Research Group plc Annual Report and Accounts 2013 28
notes to the ﬁnancial statements
For the year ended 31 March 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:53  Page 28 13. goodwill (continued)
Sensitivity analysis:
The value in use calculations in respect of the property information services division is dependent on the budgeted number of
housing market property transactions being achieved. If a reasonable change in the level of housing market property transactions
was realised, namely a fall of 7% from those budgeted, and all other variables remained stable the carrying value of the goodwill in
relation to the property information services division would not be further impaired. 
The budgeted operating profit over the next 5 years assumes that the number of housing transactions increase from the present
level of 650,000 per annum. Each 100,000 increase in the level of housing transactions should benefit the operating profit by not
less than £150,000. 
The value in use calculations in respect of the packaging solutions division is dependent upon the budgeted sales being achieved. If a
reasonable change in the level of sales was realised, namely a fall of 16% from those budgeted and all other variables remained
stable the carrying value of the goodwill in relation to the packaging solutions division would not be further impaired. 
14. other intangible assets
                                                                                                                                                             Development     Web design
                                                                                                                                                                             costs                costs                 Total
Group                                                                                                                                                                        £                        £                        £
Cost
At 1 April 2011                                                                                                                                         1,019,401           417,210        1,436,611
Additions                                                                                                                                                      456,164           102,931           559,095
Disposals                                                                                                                                                     (217,011)         (145,000)         (362,011)
At 31 March 2012                                                                                                                                    1,258,554           375,141        1,633,695
Additions                                                                                                                                                      361,455           110,851           472,306
Disposals                                                                                                                                                     (221,032)           (82,245)         (303,277)
At 31 March 2013                                                                                                                                   1,398,977           403,747        1,802,724
Amortisation
At 1 April 2011                                                                                                                                            639,675           300,478           940,153
Charge for year                                                                                                                                            272,701              94,495           367,196
Disposals                                                                                                                                                     (217,011)         (145,000)         (362,011)
At 31 March 2012                                                                                                                                       695,365           249,973           945,338
Charge for year                                                                                                                                            431,481           101,911           533,392
Disposals                                                                                                                                                     (221,032)           (82,245)         (303,277)
At 31 March 2013                                                                                                                                       905,814           269,639        1,175,453
Net book value
At 31 March 2013                                                                                                                                       493,163           134,108           627,271
At 31 March 2012                                                                                                                                       563,189           125,168           688,357
The components of other intangible assets are £493,163 in respect of development costs for the specialist electronics business
segment and £134,108 in respect of web design costs for the property information services business segment. Other intangible
assets are amortised on a straight line basis at 33.3% per annum. All other intangible assets are internally generated. In the
consolidated income statement the amortisation charge is included within administrative expenses.
Security Research Group plc Annual Report and Accounts 2013 29
notes to the ﬁnancial statements
For the year ended 31 March 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:53  Page 29 15. property, plant and equipment 
                                                                                                                                                                      Fixtures,
                                                                                                        Freehold land        Leasehold      fittings and              Motor
                                                                                                         and buildings          property      equipment            vehicles                 Total
Group                                                                                                                   £                        £                        £                        £                        £
Cost
At 1 April 2011                                                                                        190,474              86,724        1,243,845           241,898        1,762,941
Additions                                                                                                              –           899,962        1,027,217           125,368        2,052,547
Disposals                                                                                                              –                        –              (2,590)         (132,228)         (134,818)
At 31 March 2012                                                                                  190,474           986,686        2,268,472           235,038        3,680,670
Additions                                                                                                              –           116,713              66,541           104,475           287,729
Disposals                                                                                                              –                        –            (10,790)           (88,714)           (99,504)
At 31 March 2013                                                                                  190,474        1,103,399        2,324,223           250,799        3,868,895
Depreciation 
At 1 April 2011                                                                                          27,411              47,347           705,825              78,991           859,574
Charge for year                                                                                           4,071           529,016           707,217              62,812        1,303,116
Disposals                                                                                                              –                        –              (1,970)           (61,070)           (63,040)
At 31 March 2012                                                                                     31,482           576,363        1,411,072              80,733        2,099,650
Charge for year                                                                                           4,071           495,736           848,936              69,220        1,417,963
Disposals                                                                                                              –                        –            (10,403)           (49,829)           (60,232)
At 31 March 2013                                                                                    35,553        1,072,099        2,249,605           100,124        3,457,381
Net book value
At 31 March 2013                                                                                  154,921              31,300              74,618           150,675           411,514
At 31 March 2012                                                                                  158,992           410,323           857,400           154,305        1,581,020
                                                                                                                                                                                                 Fixtures,
                                                                                                                                                                    Leasehold      fittings and
                                                                                                                                                                      property      equipment                 Total
Company                                                                                                                                                                  £                        £                        £
Cost
At 1 April 2011                                                                                                                                               59,052              35,656              94,708
Additions                                                                                                                                                                  –                   847                   847
At 31 March 2012                                                                                                                                         59,052              36,503              95,555
Additions                                                                                                                                                                  –                3,038                3,038
At 31 March 2013                                                                                                                                         59,052              39,541              98,593
Depreciation 
At 1 April 2011                                                                                                                                               19,676              33,410              53,086
Charge for year                                                                                                                                                4,038                2,341                6,379
At 31 March 2012                                                                                                                                         23,714              35,751              59,465
Charge for year                                                                                                                                                4,039                   710                4,749
At 31 March 2013                                                                                                                                         27,753              36,461              64,214
Net book value
At 31 March 2013                                                                                                                                         31,299                3,080              34,379
At 31 March 2012                                                                                                                                         35,338                   752              36,090
Security Research Group plc Annual Report and Accounts 2013 30
notes to the ﬁnancial statements
For the year ended 31 March 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:53  Page 30 16. investments in subsidiaries
Company                                                                                                                                                                                    £
Cost
At 1 April 2011                                                                                                                                                                           16,500,087
Disposals                                                                                                                                                                                     –
At 31 March 2012                                                                                                                                                                      16,500,087
Disposals                                                                                                                                                                                     –
At 31 March 2013                                                                                                                                                                     16,500,087
Provision for impairment in value
At 1 April 2011                                                                                                                                                                           4,008,474
Impairment charge                                                                                                                                                                   4,137,539
At 31 March 2012                                                                                                                                                                      8,146,013
Impairment charge                                                                                                                                                                   1,703,752
At 31 March 2013                                                                                                                                                                     9,849,765
Net book value
At 31 March 2013                                                                                                                                                                     6,650,322
At 31 March 2012                                                                                                                                                                      8,354,074
subsidiaries
                                                                                                                                                                                       Number Total
                                                                                                                                                                                     of shares £
Audiotel International Limited                                                                                                                                   69,114 1,432,412
Rochdale Development Company Limited                                                                                                             357,500 1,442,816
PSG Franchising Limited                                                                                                                                                    180 3,774,094
Ufford PCC Limited                                                                                                                                                         1,000 1,000
Patersons Financial Services Limited                                                                                                                         40,002 –
At 31 March 2013                                                                                                                                                                     6,650,322
Security Research Group plc Annual Report and Accounts 2013 31
notes to the ﬁnancial statements
For the year ended 31 March 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:53  Page 31 17. subsidiary undertakings
The Company holds 100% of the share capital and voting rights of the following companies:
                                                                               Nominal value
                                                                                         of issued
                                                                               ordinary share
                                                                                             capital                               Date Principal Country of
Name of subsidiary held directly                                            £                       acquired activity incorporation
Rochdale Development Company Limited                 357,500               15 April 2004 Holding company England
Audiotel International Limited                                       69,114          31 January 2003 Specialist electronics England
PSG Franchising Limited                                                        180               25 June 2004 Property information services England
Patersons Financial Services Limited                            40,002            1 January 2005 Insurance services England
PSG Financial Services Limited                                                 2           23 August 2005 Non‐trading England
Security Research International Limited                                1         19 October 2011 Non‐trading England
PSG Solutions Limited                                                                1               19 April 2005 Non‐trading England
Ufford PCC Limited                                                             1,000                11 May 2005 Insurance services Guernsey
Held indirectly
Moore & Buckle (Flexible Packaging) Limited                                         15 April 2004 Flexible packaging England
Audiotel (UK) Limited                                                                             31 January 2003 Non‐trading England
Security Research Limited                                                                     31 January 2003 Specialist electronics England
PSG Yorkshire Limited                                                                             1 February 2006 Property information services England
PSG Energy Limited                                                                             6 September 2007 Energy surveys England
Chalenor Legal Services Limited                                                          19 October 2009 Non‐trading England
Yorkshire Home Inspections Limited                                                   19 October 2009 Non‐trading England
Moore & Buckle (Flexible Packaging) Limited is a wholly owned subsidiary of Rochdale Development Company Limited. Audiotel (UK)
Limited and Security Research Limited are wholly owned subsidiaries of Audiotel International Limited. PSG Yorkshire Limited, PSG
Energy Limited, Chalenor Legal Services Limited and Yorkshire Home Inspections Limited are wholly owned subsidiaries of PSG
Franchising Limited.
18. inventories
                                                                                                                                                                                             2013 2012
Group                                                                                                                                                                                        £ £
Raw materials and consumables                                                                                                                             819,078 832,907
Work in progress                                                                                                                                                         225,123 363,308
Finished goods and goods for resale                                                                                                                       145,117 116,420
                                                                                                                                                                                    1,189,318 1,312,635
The cost of inventories recognised as an expense during the year was £8,704,788 (2012: £11,742,769).
Security Research Group plc Annual Report and Accounts 2013 32
notes to the ﬁnancial statements
For the year ended 31 March 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:53  Page 32 19. trade and other receivables
                                                                                                                                                                                             2013 2012
Group                                                                                                                                                                                        £ £
Trade receivables
Current unimpaired                                                                                                                                                2,266,292 6,397,258
Overdue unimpaired                                                                                                                                                  198,074 231,603
Less: allowance for doubtful debts                                                                                                                          (49,745) (63,621)
                                                                                                                                                                                       148,329 167,982
Net trade receivables                                                                                                                                             2,414,621 6,565,240
Prepayments and accrued income                                                                                                                          227,198 239,099
Other receivables                                                                                                                                                          79,583 418,142
                                                                                                                                                                                    2,721,402 7,222,481
The above debtors fall due within one year.
Current unimpaired trade receivables represent amounts due from customers that are not overdue in accordance with specific
credit terms agreed with those customers.
The age profile of trade receivables that are past due but not impaired is as follows:
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
Up to 60 days                                                                                                                                                                           – 15,640
Between 60 and 90 days                                                                                                                                             45,543 16,192
Between 90 and 120 days                                                                                                                                                     – 123,084
Over 120 days                                                                                                                                                             102,786 13,066
                                                                                                                                                                                       148,329 167,982
The allowance for doubtful debts is based upon past default experience. Debts with customers in liquidation or receivership are fully
provided against. The movement in the provision during the year was as follows:
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
Balance at 1 April                                                                                                                                                          63,621 92,907
Net amounts written back/(written off) in year                                                                                                      12,060 (47,042)
Income statement (credited)/charged in year                                                                                                       (25,936) 17,756
Balance at 31 March                                                                                                                                                    49,745 63,621
                                                                                                                                                                                             2013 2012
Company                                                                                                                                                                                  £ £
Amounts owed by group undertakings                                                                                                                       9,639 –
Prepayments and accrued income                                                                                                                            34,163 15,472
                                                                                                                                                                                         43,802 15,472
The above debtors fall due within one year.
Security Research Group plc Annual Report and Accounts 2013 33
notes to the ﬁnancial statements
For the year ended 31 March 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:54  Page 33 20. deferred tax asset/(liability)
                                                                                                                                                                                             2013 2012
Group                                                                                                                                                                                        £ £
Movement
At 1 April                                                                                                                                                                      125,047 (45,135)
Credit in year                                                                                                                                                               187,054 170,182
At 31 March                                                                                                                                                                 312,101 125,047
Credit in year
Capital allowances                                                                                                                                                      198,458 155,466
Other timing differences                                                                                                                                            (11,404) 14,716
                                                                                                                                                                                       187,054 170,182
The deferred tax asset is substantially in respect of capital allowances and is all in respect of the specialist electronics segment.
The Group holds losses for capital gains purposes amounting at 31 March 2013 to £2,776,540 (2012: £2,776,540). No deferred tax
asset is recognised in respect of these capital losses. 
21. trade and other payables
                                                                                                                                                                                             2013 2012
Group                                                                                                                                                                                        £ £
Current
Trade payables                                                                                                                                                         1,091,331 4,534,776
Other payables                                                                                                                                                              44,187 42,262
Other taxes and social security                                                                                                                                368,097 1,543,499
Accruals and deferred income                                                                                                                              4,162,713 5,050,615
                                                                                                                                                                                    5,666,328 11,171,152
                                                                                                                                                                                             2013 2012
Company                                                                                                                                                                                  £ £
Current
Trade payables                                                                                                                                                              20,186 255
Amounts owed to group undertakings                                                                                                                   349,808 345,500
Other taxes and social security                                                                                                                                103,590 95,161
Accruals and deferred income                                                                                                                                 819,176 407,441
                                                                                                                                                                                    1,292,760 848,357
Security Research Group plc Annual Report and Accounts 2013 34
notes to the ﬁnancial statements
For the year ended 31 March 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:54  Page 34 22. share capital
                                                                                                                                                       2013 2012
                                                                                                                                            Number                        £           Number                        £
Authorised
Ordinary shares of 20p each                                                                                     35,000,000        7,000,000      35,000,000        7,000,000
Allotted and called up 
Fully paid ordinary shares of 20p each                                                                   19,426,324        3,885,265      25,740,565        5,148,113
380,952 (2012: 1,338,888) ordinary shares of 20p each with an aggregate nominal value of £76,191 (2012: £267,778) were issued
during the year on exercise of share options and 6,695,193 (2012: 1,505,980) ordinary shares of 20p each with an aggregate nominal
value of £1,339,039 (2012: £301,196) were purchased during the year for a total consideration of £15,191,577 (2012: £3,083,155)
and cancelled.
The directors received the following consideration in respect of their shares being purchased by the Company. J P Mervis sold
1,003,993 (2012: 237,562) ordinary shares, receiving consideration of £2,258,984 (2012: £475,124), J A Warwick sold 76,611 (2012:
8,733) ordinary shares receiving £172,374 (2012: £17,466), T M Brown sold 59,183 (2012: 4,456) ordinary shares receiving £133,162
(2012: £8,912), B C Connor sold 161,454 (2012: 27,777) ordinary shares receiving £363,272 (2012: £55,554) and J D G Holme sold
102,569 (2012: 23,641) ordinary shares receiving £230,780 (2012: £47,282).
23. share options
At 31 March 2013 share options were held by directors in respect of 460,160 (2012: 841,112) shares analysed as follows:
Name                                       1 April 2012     Exercised in year    31 March 2013  Option price per share Exercisable
J A Warwick                                    350,000                  (190,476)                 159,524                                    50p 14/02/2008 ‐ 14/02/2016
T M Brown                                      300,000                  (190,476)                 109,524                                    50p 14/02/2008 ‐ 14/02/2016
T M Brown                                        30,000                                 –                   30,000                                    72p 02/04/2009 ‐ 02/04/2017
B C Connor                                      161,112                                 –                 161,112                                    72p 02/04/2009 ‐ 02/04/2017
Options in respect of 380,952 ordinary shares at a weighted average price of 50.0p were exercised during the year. No options were
granted or lapsed during the year.
It is the Board’s intention to keep the number of options outstanding at no more than 10% of the issued share capital.
share based payments
The options for directors were introduced in February 2006 and April 2007. Options are granted with a fixed exercise price equal to
the market price of the shares under option at the date of grant. The contractual life of an option is 5 years or 8 years following the
vesting period. There are no reload features. Exercise of an option is dependent on continued employment. Options were valued
using the Black‐Scholes option‐pricing model. No performance conditions were included in the fair value calculations. The expected
dividends factored into the model are £Nil. The fair value per option granted and the assumptions used in the calculation are as
follows:
                                                                                                                                                                                  Grant date Grant date
                                                                                                                                                                               2 April 2007 14 February 2006
Share price at grant date                                                                                                                                                   72p 50p
Exercise price                                                                                                                                                                      72p 50p
Number of directors                                                                                                                                                               2 2
Share options granted                                                                                                                                               330,000 1,278,572
Shares options remaining                                                                                                                                         191,112 269,048
Vesting period                                                                                                                                                               2 years 2 years
Expected volatility                                                                                                                                                             60% 60%
Option life (years)                                                                                                                                                                 10 10
Risk free rate                                                                                                                                                                   5.37% 4.44%
Fair value per option                                                                                                                                                      26.2p 17.9p
Security Research Group plc Annual Report and Accounts 2013 35
notes to the ﬁnancial statements
For the year ended 31 March 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:54  Page 35 23. share options (continued)
The expected volatility is based on historical volatility over the year preceding the grant of options. The risk free rate of return is the
yield on zero‐coupon UK government bonds issued consistent with the assumed option life. A reconciliation of option movements
over the year to 31 March 2013 is shown below.
                                                                                                                                                                                             2013 2012
                                                                                                                                                                     Number of shares Number of shares
Outstanding at 1 April                                                                                                                                                841,112 2,180,000
Granted                                                                                                                                                                                     – –
                                                                                                                                                                                       841,112 2,180,000
Exercised                                                                                                                                                                     (380,952) (1,338,888)
Outstanding at 31 March                                                                                                                                         460,160 841,112
Exercisable at 31 March                                                                                                                                            460,160 841,112
The weighted average option price at 31 March 2013 was 59.1p (2012: 55.0p).
The weighted average share price at the date of exercise was 122.5p (2012: 57.3p).
The weighted average contract life of the options outstanding at 31 March 2013 was 40 months (2012: 49 months).
24. financial instruments
capital management
The Group finances its operations through retained earnings and the management of working capital.
financial risk management
The principal financial risks to which the Group is exposed relate to liquidity and credit. The policies and strategies for managing
these risks are summarised as follows:
(a) liquidity risk
The Group actively maintains sufficient funds for operations and planned expansions.
(b) credit risk
Credit risk refers to the risk that a counterparty will default on contractual obligations resulting in a financial loss to the Group. The
Group has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating financial risk from defaults.
Nevertheless risk has increased due to the current economic circumstances. 
The Group’s principal financial assets are bank balances, cash and trade receivables. The Group has no significant concentration of
credit risk with exposure spread over a large number of customers. Credit risk is managed by monitoring the aggregate amount and
duration of exposure to any one customer depending upon their credit rating. The amounts presented in the statement of financial
position are net of allowances for doubtful debts, estimated by the Group’s management, based on prior experience and their
assessment of the current economic environment. The credit risk on liquid funds is limited because the counterparties are banks
with high credit ratings assigned by international credit rating agencies. The directors consider that the maximum exposure of the
Group to credit risk to be the current assets of the Group excluding inventories.
Security Research Group plc Annual Report and Accounts 2013 36
notes to the ﬁnancial statements
For the year ended 31 March 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:54  Page 36 24. financial instruments (continued)
At 31 March 2013 the Group had financial assets as follows:
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
Cash at bank                                                                                                                                                             5,397,860 17,268,743
The rate of interest receivable on financial assets is variable.
fair values of financial assets
The fair value is an amount at which a financial instrument could be exchanged in an arms length transaction between informed and
willing parties, other than a forced or liquidation sale and excludes accrued interest.
The fair value of cash deposits approximates to the carrying amount because of the short maturity of these instruments.
25. financial commitments
The Group leases various properties and other items under non‐cancellable operating lease agreements. The total future minimum
lease payments under non‐cancellable operating leases are as follows:
                                                                                                                                                       2013 2012
                                                                                                                                          Land and               Other          Land and               Other
                                                                                                                                           buildings                                    buildings
Group                                                                                                                                              £                        £                        £                        £
Within one year                                                                                                                214,416                5,526           233,137                6,058
In the second to fifth year                                                                                              435,020                8,478           499,500              12,301
After five years                                                                                                                  243,000                        –           351,000                        –
                                                                                                                                             892,436              14,004        1,083,637              18,359
Security Research Group plc Annual Report and Accounts 2013 37
notes to the ﬁnancial statements
For the year ended 31 March 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:54  Page 37 Notice is given to all shareholders that the Annual General Meeting of Security Research Group plc (“the Company”) for 2013 will be
held at the offices of the Company, 133 Ebury Street, London SW1W 9QU on 29 August 2013 at 12 noon for the transaction of the
following business. Resolutions 1 to 5 inclusive will be proposed as ordinary resolutions and resolutions 6 and 7 will be proposed as
special resolutions:
ordinary business
1.    To receive the Company’s financial statements for the financial year ended 31 March 2013 together with the directors’ report
and the auditors’ report on those financial statements.
2.    To re‐appoint J P Mervis as director of the Company, who retires under Article 93 at the Annual General Meeting.
3.    To re‐appoint J A Warwick as director of the Company, who retires under Article 93 at the Annual General Meeting.
4.    To re‐appoint Milsted Langdon LLP , Chartered Accountants and Registered Auditors, as auditors of the Company to hold office
from the conclusion of the meeting to the conclusion of the next meeting at which the accounts are laid before the Company
and to authorise the directors to determine the auditors’ remuneration.
special business
5.    That the directors be generally and unconditionally authorised, pursuant to Section 551 of the Companies Act 2006 (“the Act”),
to allot  relevant securities (as defined in that section) up to an aggregate nominal amount of £3,114,735 provided that:
       5.1  this authority shall expire 15 months from the date of this resolution or at the Company’s next Annual General Meeting, if
earlier; and 
       5.2  that the Company may before such expiry make an offer or agreement which would or might require relevant securities to
be allotted after such expiry and the directors may allot relevant securities in pursuance of such an offer or agreement
notwithstanding that the authority conferred hereby has expired and that this authority shall be in substitution of all
previous authorities conferred upon the directors pursuant to the said Section 551.
6.    That, subject to the passing of resolution 5 above, the directors be and they are hereby empowered pursuant to Section 570 of
the Act to allot equity securities (as defined in Section 560 of the Act) of the Company for cash pursuant to the general
authority granted in resolution 5 above as if Section 561(1) of the Act did not apply to any such allotment, provided that this
power shall be limited to:
       6.1  the allotment of equity securities in connection with or pursuant to an offer by way of rights, open offer or other pre‐
emptive offer to the holders of ordinary shares and other persons entitled to participate therein in proportion to their
respective holdings, subject to such exclusions or other arrangements as the directors may consider necessary or expedient
to deal with fractional entitlements or legal or practical problems under the laws of any territory or the regulations or
requirements of any regulatory authority or any stock exchange in any territory;
       6.2  the allotment (otherwise than pursuant to 6.1 above) of equity securities up to an aggregate nominal amount of £777,053
(being approximately 20% of the issued ordinary share capital of the Company);
       and such power shall expire 15 months from the date of this resolution or at the Company’s next Annual General Meeting, if
earlier, save that the Company may before such expiry make an offer or agreement which would or might require relevant
securities to be allotted after such expiry and the directors may allot equity securities in pursuance of any such offer or
agreement notwithstanding that the power conferred by this resolution has expired. 
7.    That, subject to passing the above resolutions 5 and 6 above, the Company be generally and unconditionally authorised for the
purpose of Section 701 of the Companies Act 2006 to make market purchases (within the meaning of Section 693(4) of the
Companies Act 2006) of ordinary shares of 20p each in the capital of the Company (‘Ordinary Shares’) on such terms and in such
manner as the directors of the Company may from time to time determine provided that:
       7.1  The maximum number of Ordinary Shares hereby authorised to be purchased is 7,770,529 (representing 40% of the
Company’s issued Ordinary Share capital);
       7.2  The amount paid for each such share shall not be more than 5% above the average of the middle market quotation for
Ordinary Shares as derived from the AIM Appendix to the Daily Official List of the London Stock Exchange plc for the 10
Business Days immediately preceding the date on which the contract for purchase is made, and in any event not less than
20p per Ordinary Share; and
       7.3  The authority herein contained shall expire in 15 months or at the conclusion of the next Annual General Meeting if earlier
provided that the Company may before such expiry make a contract for the purchase of Ordinary Shares under the
authority which would or might be executed wholly or partly after the expiry of this authority and may make purchases of
Ordinary Shares in pursuance of such contract as if the authority hereby conferred had not expired.
By order of the Board
John Warwick
Company Secretary
23 July 2013
133 Ebury Street
London
SW1W 9QU
Security Research Group plc Annual Report and Accounts 2013 38
notice of annual general meeting
For 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:54  Page 38 Notes:
1. A member entitled to attend and vote at the meeting convened by the notice set out above may appoint a proxy to exercise all
or any of his rights to attend, speak and vote instead of him. A proxy need not be a member of the Company. A member may
appoint more than one proxy if each proxy is appointed to exercise the rights attaching to different shares held by the member.
To appoint more than one proxy, please contact the Company’s Registrars, Capita Registrars, The Registry, PXS, 34 Beckenham
Road, Beckenham, BR3 4TU. 
2. A form of proxy is provided. To be effective, the form of proxy must be received at the office of Capita Registrars, PXS,
34 Beckenham Road, Beckenham, BR3 4TU not less than 48 hours before the time fixed for the Annual General Meeting.
Completion of the form of proxy does not preclude a member from subsequently attending and voting at the meeting in person
if he or she so wishes.
3. The register of interests of the directors and their families in the share capital of the Company and copies of contracts of service
of directors with the Company or with any of its subsidiary undertakings will be available for inspection at the registered office
of the Company during normal business hours (Saturdays and public holidays excepted) from the date of this notice until the
conclusion of the meeting.
4. In accordance with Regulation 41 of the Uncertificated Securities Regulations 2001, only those members entered on the
Company’s register of members not later than 48 hours before the date of the meeting, or, if the meeting is adjourned,
shareholders entered on the Company’s register of members not less than 48 hours before the time fixed for the adjourned
meeting shall be entitled to attend and vote at the meeting. 
5. As at 18 July 2013, the Company’s issued share capital comprised 19,426,324 ordinary shares of 20p each. Each ordinary share
carries the right to one vote at a general meeting of the Company. 
Security Research Group plc Annual Report and Accounts 2013 39
notice of annual general meeting
For 2013
229432 Security Research AR pp21-pp40  23/07/2013  15:54  Page 39  
 
 
 
 
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