Fulcrum Pharma plc
ANNUAL REPORT & ACCOUNTS
2008
fulcrumpharma
Providing Expert Solutions WHAT WE DO
Fulcrum Pharma is a professional
service company providing clients
with expert solutions for development
of therapeutic products.
Contents
1 Highlights
2 Our global reach and services
3 Our global client base
4 Chairman’s statement
6 Chief Executive’s review
8 Board of directors
9 Directors’ report
12 Corporate governance statement
13 Independent auditors’ report
14 Consolidated income statement
14 Consolidated statement of recognised gains and losses
15 Consolidated balance sheet
16 Company balance sheet
16 Company statement of changes in equity
17 Consolidated cash flow statement
18 Company cash flow statement
19 Notes to the financial statements
53 Notice of annual general meeting
55 Form of proxy Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
1
HIGHLIGHTS
Revenue growth of 29% to £14.8m (2007: £11.5m)
Operating profit increased 258% to £666,000 (2007: £186,000)
Cash position strong at £2,903,000 (2007: £2,217,000)
EBITDA* doubled to £1,139,000 (2007: £573,000)
New Chief Executive, Chairman designate and non-executive Directors appointed
*
EBITDA is defined as earnings before interest, taxation, depreciation and amortisation
Our Vision
Fulcrum Pharma will be the most admired, pioneering and leading professional service company
in our selected fields. Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
2
OUR GLOBAL REACH AND SERVICES
Currently operating eight offices across the US, Europe and
from Japan, Fulcrum Pharma is in a unique position to offer
drug development and regulatory services with an international
reach, supported by infrastructure and expertise on the ground
in many major regions for pharmaceutical commercialisation.
Providing pharmaceutical and biotechnology companies with immediate access to a global,
experienced and highly credible integrated drug development and regulatory services team.
Fulcrum Pharma provides the strategic and operational expertise required to ensure that new
drugs move smoothly from discovery to product approval.
Company Overview
Our Offices
In a global market where regulations are changing rapidly it is
essential to obtain advice that is practical, current and
independent. Fulcrum offers easy access to pragmatic advice,
based on solid experience and an in-depth knowledge of the
regulatory landscape.
Fulcrum Pharma provides the full range of drug development
and regulatory expertise essential to progress a development
programme from research to product approval. We work with
many clients from lead candidate selection through to 
non-clinical and pharmaceutical development and all phases of
clinical development. We provide support for product
registration, launch and in-market maintenance. Our drug
development experts provide technical input to the design and
implementation of client development programmes. Our
regulatory and safety experts provide the strategic and
operational support to ensure successful approval at every
stage of the development and post-marketing process. Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
3
OUR GLOBAL CLIENT BASE
Fulcrum Pharma has diversified the client base to four key groups: Pharmaceutical Companies,
Biotechnology Companies, the Neglected Diseases
/Non-Governmental sector and the Investment
Community.
Neglected Diseases
Fulcrum Pharma provides a full range of service offerings to its
global client base across all their inte national locations.
Our Clients
Fulcrum Pharma continues its commitment to supporting
drug development of new products in the area of Neglected
Diseases. In particular Fulcrum Pharma’s ongoing activities
support development in falciparum and vivax malaria,
human African trypanomiasis and leishmania, as well as for
rare indications in populations with unmet medical need. 
A specific focus of the Product Development Consultancy is in
Neglected Disease. Fulcrum Pharma has recently completed a
phase III programme of over 2,500 malaria patients and will be
supporting the global submissions to the Regulatory
Authorities, EMEA and FDA.
r Global insight and advice on product development
and registration strategies from discovery to 
post-approval
Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
4
CHAIRMAN’S STATEMENT
BUSINESS REVIEW
I am pleased to report continued
growth in sales, operating profit and
cash generation during the year.
Our strategy to increase the scale of
the Group both organically and by
acquisition has resulted in significant sales growth, cash
generation and improved profits.
FINANCIAL REVIEW
The Group has adopted International Financial Reporting
Standards as adopted by the EU (“IFRS”) in these results for
the first time and the comparative figures have been
restated accordingly. The impact of adoption of IFRS on the
Group’s income statement for the period ended 31 August
2008 has been to increase the retained profit, as compared
to UK GAAP, by £259,000 (2007: £109,000) as a result of
the changes in accounting for employee benefits, business
combinations and lease inducements. 
Sales have risen by 29% to £14.8m compared with last
year. Operating profit has increased 258% to £666,000
(2007: £186,000). The profit before tax has increased by
201% to £454,000 (2007: £151,000).  Earnings before
interest, tax, depreciation and amortisation (“EBITDA”)
were £1,139,000 (2007: £573,000). The retained profit for
the year was £324,000 (2007: £141,000) and the basic
earnings per share was 0.19p (2007: 0.10p).
The balance sheet remains strong with an increase in cash
during the year of £686,000 to £2,903,000  
(2007: £2,217,000) after repayment of bank loans and loan
notes of £732,000.
The directors do not propose a dividend. (2007: £ nil).
Average headcount for the year has increased from 105 to
137, with 140 at the year end.
Consulting
Integrated development expertise to accelerate
product development, assure quality, and maximise
return on investment
Development Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
5
UNICUS
The earn-out period relating to the acquisition of Unicus
Regulatory Services Limited ended on 31 July 2008. The
liability for deferred consideration has been increased from
£250,000 to £815,000, reflecting the strong 
post-acquisition performance of the business.
BOARD CHANGES
I informed the Board of my intention to stand down as
Chairman at the forthcoming Annual General Meeting to
be held on 22nd December 2008. Mr Grahame Cook
joined the Board on 28 August 2008 as a non–executive
Director and Chairman designate. In addition, Mr Frank
Condella and Mr Ken Lacey joined the Board as non-
executive Directors on 25 September 2008. With these
additions, I am convinced Fulcrum Pharma has a strong
Board, capable of delivering the Company’s strategy.
I would also like to thank Dr Jon Court, who stepped 
down from the Board on 31 March 2008, for his years of
leadership of the Fulcrum Pharma business.
CONCLUSION
I am encouraged by the improved performance of the
Group in terms of operating profit and cash generation.
The Board remain committed to growing Fulcrum Pharma’s
professional services business both organically and by
acquisition.
SIR CHARLES GEORGE
Chairman
26 November 2008
Global regulatory affairs expertise to streamline
submission management and achieve fast product
approval
Regulatory
Global pharmacovigilance and risk management
expertise to ensure products comply with 
ever-increasing safety requirements
Safety Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
6
CHIEF EXECUTIVE’S REVIEW
STRATEGIC REVIEW
Following my appointment as Chief Executive
on 1 April 2008, I have conducted a strategic
review of the business with the Management
Team and Board. The review has refined the
Group’s Mission, service offerings and branding
and confirmed that the Group is committed to
increasing scale through both organic growth
and selective acquisitions.
KEY PERFORMANCE INDICATORS
2008 2007 Increase
Sales (£’000) 14,826 11,503 29%
Cash generated by Operations (£’000) 1,493 874 71%
COMMERCIAL, SALES AND BUSINESS DEVELOPMENT
The refined Mission is that “Fulcrum Pharma is a professional service
company providing clients with expert solutions for the development of
therapeutic products”.  
The Group has undertaken a rebranding exercise based on a new
Vision, Mission and Values. 
Following on from the Strategic Review, the main elements of the
business strategy are
• to build a substantial Regulatory business
• to deliver bigger projects from diversified clients from the Product
Development Consultancy business, and 
• to opportunistically pursue chances to add complementary skills to
Fulcrum Pharma’s offerings and alliances with other service providers.
The corporate website has been redesigned and there has been wide
participation at major scientific, biotechnology and partnering
conferences in the US, Europe and Japan. The Group has continued to
look for opportunities to sell services across its geographical regions
and provide complete and expert solutions to clients. In particular, the
business development efforts of the Japanese subsidiary have
generated significant fee sales from Japanese clients for the Europe and
US businesses.
The organisation has been strengthened with the creation of a
focussed Commercial Operations group to lead sales and business
development and a Professional Development group to support staff
development and training. 
As part of the strategy to expand Pharmacovigilance services, Fulcrum
Pharma has formed a strategic collaboration with Quantum Solutions,
India. This collaboration enables Fulcrum Pharma to deliver high
capacity processing and reporting of safety information whilst
maintaining necessary quality standards.
PRODUCT DEVELOPMENT CONSULTANCY
Dr Sarah Arbe-Barnes has been appointed as General Manager for
Product Development Consultancy (PDC).  This specialist group has
been established to provide global, strategic consultancy to the pharma
and biotech industries, the investment community and the neglected
diseases sector and to lead Fulcrum Pharma’s development
programmes. PDC has the target of winning larger drug development
projects from a more diverse client base, and to pursue opportunities to
retain a greater amount of the project work within the Fulcrum Pharma
organisation. PDC operates on a global basis with staff based in Europe
and the US.
EUROPE
On 1 April 2008, Fulcrum Pharma Developments Limited was renamed
Fulcrum Pharma (Europe) Limited and became the single trading entity
in Europe, with Dr Phil Birch  appointed as General Manager.  Fulcrum
Pharma (Europe) integrated the businesses of the acquired subsidiary
companies, Quadramed Limited and Unicus Regulatory Services Limited
(“Unicus”) with Fulcrum Pharma Developments Limited.  This change
of structure has enabled the integration of processes across Europe and
has simplified the organisational structure.
In 2008, additional market leading services were added
to the Fulcrum Pharma portfolio. These additions
triggered a corporate rebranding exercise that repositions
Fulcrum Pharma as the leading professional service
company in our selected field.
A new brand logo and corporate image defined the new
corporate identity, and a clear marketing strategy to
develop industry awareness was set in place to ensure
the name Fulcrum Pharma represented a professional
image in the market place.
Rebranding Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
7
Sales in Europe have grown by 20% to £9.8 million (2007: £8.2
million) reflecting the full year contribution of Unicus, which was
acquired in March 2007.  The initial issues experienced with Unicus
have been resolved and the strong sales performance has
demonstrated the value created by the acquisition of Unicus by the
Group.
US
The US business recorded a strong performance. Sales grew by 72% to
£2.4 million (2007: £1.4 million) reflecting the recovery of the business.
Mr John Larus joined the Company as General Manager for the US and
has restructured the US organisation in preparation for future growth.
Staff numbers have increased from 16 to 22 with expanded operational
and business development resource including extending the Group’s US
presence with the opening of an office in Ann Arbor, Michigan in
November 2007. Additionally, in order to better service the needs of
the clients, a dedicated regulatory affairs group, with electronic
submission capabilities, has been established in the US.
JAPAN
The Japanese organisation has continued to consolidate its position as
a leading specialist CRO in the oncology field.  Organic growth over the
last year has seen sales increase by 35% to £2.6 million (2007: £1.9
million) and headcount increase by 20%. The domestic client base is
predominately first tier Pharma companies and government funded
organisations. Long-term, stable contracts with these clients allow the
Japanese business to maintain an order book showing a good level of
predictability in a two year horizon.
FUTURE STRATEGY AND OUTLOOK
The Group continues to see a trend for increased demand for
outsourcing as clients target more productive research and
development outputs.  The turbulent market conditions have increased
the focus of all clients on selective and efficient use of capital in
progressing drug development projects.  While the Group has
Senior Management
Phil Birch
Dr Birch
manages the
Group’s
European
activities
covering
development and regulatory
services. He has over 23 years
experience in the biotech,
pharma and consulting industry
and brings R&D, commercial 
and corporate development
experience to the Group. 
He joined Fulcrum in 2005 to
grow the European regulatory
business through acquisition.
Before joining Fulcrum he held
senior positions in R&D, strategic
marketing and business
development in Akos Consulting,
Ionix Pharmaceuticals,
Amersham, Astra and Glaxo. 
He is a first class honours
graduate from Oxford University
and obtained his D. Phil. in 1985.
Sarah
Arbe-
Barnes
Dr Sarah
Arbe-Barnes
heads the
newly
formed Product Development
Consultancy, a global group
within Fulcrum Pharma which
runs high value consultancy and
major drug development
programmes. Dr Arbe-Barnes
joined Fulcrum in 2000 and
previously ran the European
Developments group. 
Dr Arbe-Barnes is two times
recipient of Project of the Year
from Medicines for Malaria
Venture. Prior to joining Fulcrum
she held management positions
in Covance, Servier, Grunenthal
and Aventis Pasteur. 
Dr Arbe-Barnes holds a PhD in
Biochemistry from University 
of Bath.
John
Larus
Mr Larus
manages the
Group’s US
activities,
which
include business development
and operations. He has spent 20
years in the clinical trials services
industry, and co-founded
PharmaLinkFHI, where he was
responsible for the company’s
clinical operations and technology
implementation. He is a former
President and COO of Maaguzi,
an Electronic Patient Reported
Outcomes Company. Before
joining Fulcrum Pharma,
Mr Larus served as the VP for
North American Clinical
Operations with AAI Pharma, a
global CRO. He has an MA in
Quantitative Psychology from 
the University of North Carolina 
at Chapel Hill.
Teruyoshi
Okuda
Mr Okuda is
the President
of Fulcrum
Pharma KK,
the specialist
consulting and project manage-
ment arm of Fulcrum in Japan.
He has represented Fulcrum in
Japan since the initiation of the
company’s activities there in
2000.  Before joining Fulcrum,
Mr Okuda held various
management positions in Nippon
Roche and Rhone-Poulenc Rorer
Japan, playing a leading role in
the development of docetaxel,
capecitabine and herceptin in
Japan. Mr Okuda holds Bachelor
and Master degrees in
Pharmaceutical Technochemistry
and Pharmaceutical Sciences
from the Science University 
of Tokyo.
Kiyoshi
Fujimaru
Mr Fujimaru
is the
President of
Niphix KK,
Fulcrum’s
clinical research organization in
Japan. He joined Fulcrum in 2003
to set up direct clinical monitoring
and data management service for
the company’s Japanese clients.
Prior to joining Fulcrum
Mr Fujimaru was a senior
manager and Board Director of
EPS; a leading Japanese CRO.
Before that he held managerial
positions in Grelan Pharma-
ceutucals, Nihon Servier and
Nippon Roche. Mr Fujimaru has a
Bachelor degree in mathematics
from the Science University of
Tokyo and carried our post-
graduate research in biostatistics
for seven years in the Faculty of
Medicine of Tokyo University.
experienced a slowing in commitments from clients to progress such
projects, the diversification of the client base, to include the focus on
neglected diseases and novel models of drug development, coupled
with distinctive offerings from Fulcrum Pharma, convince the Group of
the continuing business opportunity, despite the more difficult market
conditions.
The Group has a clear strategy to deliver a growing, sustainable and
profitable business. The steps that management has taken provide a
strong platform to grow the Fulcrum Pharma business by building a
substantial Regulatory business and delivering bigger projects from
diversified clients.
CONCLUSION
The operating profit of £666,000 is in line with market expectations.
Current trading is satisfactory and the Board is further encouraged by
the strengthened order book since the year end.
Sir Charles George has chaired the Board of Fulcrum Pharma since the
Company’s listing in March 2000 and provided dedicated leadership
and service to the Company. The management and Board would like to
thank him for his endeavours over the years and wish him well with his
future opportunities. We welcome Mr Grahame Cook as Chairman
designate and Mr Ken Lacey and Mr Frank Condella to the Board.
Finally, I would like to thank the management and staff for their
contributions to the business in 2008 and I look forward to their
continuing commitment to Fulcrum Pharma in 2009.
DR FRANK ARMSTRONG
Chief Executive Officer
26 November 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
8
EXECUTIVE DIRECTORS
Dr Frank Armstrong (52)
CHIEF EXECUTIVE OFFICER
Dr Armstrong joined
Fulcrum Pharma as CEO
in April 2008, brining
more than 20 years of
experience of Drug
Development and
International Management at major
Pharmaceutical and Biotechnology companies.
Most recently Dr Armstrong was CEO of CuraGen
Corp (a NASDAQ listed US Biotechnology
company) and prior to that gained experience as a 
Non Executive and Executive Director of a range of
Biotechnology companies. From 1998 to 2001 Dr
Armstrong was Executive Vice President of Product
Development for Bayer AG and before that served
in various roles for ICI and Zeneca
Pharmaceuticals. Dr Armstrong is a Fellow of the
Royal College of Physicians in Edinburgh and a
Fellow of the Faculty of Pharmaceutical Medicine.
Mr Geoffrey Smith (54)
FINANCE DIRECTOR
Mr Smith is responsible
for the financial matters
associated both with
running the Company and
specific projects.
Mr Smith qualified as a
Chartered Accountant with KPMG Peat Marwick in
Leeds in 1979 and then specialised in corporate
tax with Robson Rhodes. He was Finance Director
of Spong Holdings plc before establishing his own
specialist tax consultancy in 1987. Mr Smith has
since that date also been Finance Director of a
number of AIM listed companies.
Dr Alastair Devlin (52)
JAPAN OPERATIONS DIRECTOR
Since September 2002,
Dr Devlin has been
responsible for managing
the expansion of
Fulcrum’s activities in
Japan. Before taking this
role, Dr Devlin held the positions of Chief
Operating Officer and Technical Director for
Fulcrum Pharma Developments Limited.
Prior to his directorship with Fulcrum, Dr Devlin
was a founder member of Protodigm Limited,
where he was Director of Technical Development.
In 13 years in the healthcare industry prior to
joining Protodigm, Dr Devlin held positions in
quality assurance and process development at
director and vice president level in the UK,
Switzerland, Italy and the US. Dr Devlin has a
BSc (Hons) and PhD degrees from the University 
of Glasgow.
NON-EXECUTIVE DIRECTORS
BOARD OF DIRECTORS
Sir Charles George (67)
NON-EXECUTIVE DIRECTOR
Professor Sir Charles
George is a former
President of the British
Medical Association and
currently chairs its Board
of Science. Until the end of
2004 he was Medical
Director of the British
Heart Foundation. He is
the former Chairman of
the Joint Formulary
Committee, responsible for
overseeing the production
of the British National
Formulary. He is Emeritus
Professor of Clinical
Pharmacology at the
University of Southampton,
where he served as Dean
from 1993 to 1998. He
has also been a Director of
Southampton Innovations
Limited, the company
responsible for capitalising
on the intellectual property
rights of innovations
arising from within
Southampton University.
Mr Grahame Cook (50)
NON-EXECUTIVE DIRECTOR
Mr Cook, a chartered
accountant, has held a
number of senior executive
positions including, most
recently his role as Chief
Executive at WestLB
Panmure, until 2003,
where he was responsible
for all global functions and
the expansion and
development of WestLB
Panmure's business. 
Prior to this he spent three
years at UBS as a
managing director where
he was on the Global
Investment Banking
Management Committee.
He was also a director of
Barclays de Zoete Wedd.
He was a founding
member of the London
Stock Exchange techMARK
Advisory Council and
currently holds various
other non-executive
positions including
Antisoma PLC, Sinclair
Pharma Plc and Minoan
Group plc.
Dr Angus Bell (59)
NON-EXECUTIVE DIRECTOR
Dr Bell has more than 30
years of experience in the
Pharmaceutical Industry.
Dr Bell was Chief
Operating Office for
Preclinical Services and
General Manager of Early
Development and
Laboratory Services for
Quintiles in Edinburgh.
Previously he worked for
Glaxo where he made
significant contributions to
the Development of
several marketed
medicines including
Zantac, Imigran and
Serevent. Dr Bell has
extensive experience of
Strategic and Operation
management roles and the
re-design of key business
processes in R&D. Dr Bell
is a Non Executive Director
of Pharmaceutical Profiles
Ltd and Maccine Pte, Ltd.
Dr Michael Carter (70)
NON-EXECUTIVE DIRECTOR
Dr Carter is a Venture
Partner at SV Life
Sciences Limited and a
member of Paul Capital
Royalty Advisory Board. 
He also holds additional
non-executive
directorships at Micromet
GmbH, Santarus Inc., and
GTx Inc. Dr Carter’s
previous roles include
Medicines Commission
Member, Pharmaceutical
Board Member at Zeneca,
and roles in marketing and
clinical development, both
at Zeneca and Roche
Products Limited.
Dr Carter holds an MB,
ChB from Sheffield
University Medical School
and is a Fellow of Royal
College of Physicians of
Edinburgh.
Mr Frank Condella (54)
NON-EXECUTIVE DIRECTOR
Mr Condella was the Chief
Executive Officer and is
now a Non-executive
Director of SkyePharma
PLC. He has a
distinguished career as a
Pharmaceutical Executive
in senior roles at Ivax
Corporation, F H Faulding
and Co and Roche in the
UK and the US.
Mr Condella holds an MBA
from the Graduate School
of Business, Northeastern
University in Boston and a
BS in Pharmacy from the
College of Pharmacy and
Allied Health, Northeastern
University, Boston.
Mr Ken Lacey (55)
NON-EXECUTIVE DIRECTOR
Mr Lacey was Global
Managing Director for
Accenture's Health & Life
Sciences (H&LS) Practice,
working with a broad
range of clients in
Government, the Pharma
Industry and the broader
Health and Life Science
Industry. Mr Lacey worked
for Accenture and its
predecessor companies
for 28 years. Mr Lacey
holds a BA degree from
Rice University and an
MBA from the University 
of Texas. Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
9
The Directors present their report and the audited financial statements for the year ended 31 August 2008. The Group financial statements
consolidate the results of Fulcrum Pharma plc (the “Company”) and its subsidiaries, together the “Group”, drawn up to 31 August 2008.
Business Review
The Group’s principal activity is that of a professional service company providing clients with expert solutions for the development of therapeutic
products. A review of the business during the year ended 31 August 2008 and future developments are set out in the Chairman’s statement and
the Chief Executives review on pages 4 to 7.
The Directors believe that, given the Group’s current stage of development, the Key Performance Indicators (“KPIs”) are fee sales and net cash
generation. A review of the KPIs is contained in the Chairman’s Statement on page 4.
The key risks to the business are deterioration of the funding climate for biotech and smaller pharmaceutical companies and changes in health
authority regulations which may create additional uncertainty and cost for drug development programmes.
Results and dividends
The retained profit for the year after taxation was £324,000 (2007: £141,000). No interim dividend (2007: £Nil) was paid and the Directors do
not propose a final dividend.
Directors, officers and Directors’ interests
The Directors who served during the year are as set out below:
Professor Sir Charles F George
Dr F M Armstrong (appointed 1 April 2008)
Dr J P Court (resigned 1 April 2008)
Mr C G G Smith
Dr J A Devlin
Mr G D Cook (appointed 28 August 2008)
Dr M G Carter
Dr J A Bell 
On 25 September 2008, Mr K L Lacey and Mr F C Condella were appointed as Directors.
Biographies of the Directors are set out on page 8.
The position of Company Secretary is held by Mrs L Wotherspoon.
None of the Directors had an interest in any contract of significance to which the Group was party during the year ended 31 August 2008.
Political and charitable contributions
The Group made charitable contributions of £500 during the year (2007: £870). £350 was donated to Marie Curie Cancer Care and the remainder
to a number of different charities. The Group made no political contributions during the year.
Employees
The Group involves all its employees in its corporate objectives, plans and performance and on other relevant matters of interest to employees
through various communication methods and regular Company meetings. The Group is an equal opportunity employer and does not discriminate in
the recruitment and promotion of staff. All employees are included in the Group’s bonus incentive plan and also, if qualified, are entitled to receive
share options within the Group’s share option schemes.
The Group is aware of its obligations to disabled persons and makes every effort to ensure that they receive equal opportunities and are not
discriminated against on the grounds of any disability. The Group will make every effort to assist any individual who becomes disabled during the
course of his or her employment.
Creditor payment policy
The Group’s policy is to pay suppliers within the terms of the invoice. This policy and any specific terms agreed with suppliers are made known to
the appropriate staff and to suppliers on request. The Group’s average creditor payment period at 31 August 2008 was 46 days (2007: 47 days) and
for the Company was 11 days (2007: 19 days).
>DIRECTORS’ REPORT
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
10
>DIRECTORS’ REPORT (continued)
For the year ended 31 August 2008
Substantial shareholdings
The Company had the following shareholdings amounting to 3% or more of the ordinary share capital of the Company.
As at 20 November 2008 As at 31 August 2008
Number of Number of
shares held % shares held %
Bluehone Investors LLP 25,117,986 14.1% 25,117,986 14.1%
Pershing Nominees Limited 9,558,940 5.4% 9,619,616 5.4%
HSBC Global Custody Nominee Limited 9,233,065 5.2% 9,358,065 5.3%
Dr J P Court 7,461,622 4.2% 7,461,622 4.2%
Pinnacle Trustees 7,215,686 4.1% 4,897,014 2.8%
Dr J A Devlin 7,093,975 4.0% 7,093,975 4.0%
Mr N G Oughton 6,976,328 3.9% 6,976,328 3.9%
Dr G E Walters 6,976,328 3.9% 6,976,328 3.9%
Rathbone Nominees Limited 6,653,415 3.7% 6,888,687 3.9%
Dr R M Miller 6,476,328 3.6% 6,476,328 3.6%
Barclayshare Nominees Limited 6,414,940 3.6% 6,456,790 3.6%
Giltspur Nominees Limited 6,073,332 3.4% 6,073,332 3.4%
TD Waterhouse Nominees (Europe) 5,781,135 3.2% 5,891,827 3.3%
Safety, health and environment
The Group is committed to maintaining high standards of safety, health and environmental protection by conducting itself in a responsible manner
to protect people and the environment. In pursuit of this, the Group has established Health and Safety procedures and policies under the control of
a responsible manager. Consultants have been appointed to help monitor and train the staff of the Group.
Financial risk management 
The policies and objectives of the financial risk management are set out in Note 23 to the financial statements.
The Group treasury policy is one of conservatism approved by the Board. As a matter of policy, the Group does not undertake speculative
transactions, which would increase its currency or interest rate exposure. 
Provision of information to auditors
The Directors who held office at the date of the approval of this Directors’ report confirm that, so far as they are aware, there is no relevant audit
information of which the Group’s auditors are unaware, and each Director has taken all the steps that ought to have been taken as a Director in
order to ensure the Board is aware of any audit information and to establish that the Group’s auditors are aware of that information.
Acquisition of own shares
During the year, the Employee Share Option Plan Trust, the details of which are set out in Note 22 to the financial statements, acquired 500,000 of
the Company’s shares at 3.5 pence each, representing 0.28% of called up share capital, for £17,500. These shares were purchased using a loan
from the Company, as set out in Note 28 to the financial statements
Auditors
A resolution to re-appoint PricewaterhouseCoopers LLP as auditors to the Company will be proposed at the General Meeting.
Statement of Directors’ Responsibilities In respect of the Annual Report and the financial statements
Company law requires the Directors 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 (IFRS) as adopted by the European Union.
The financial statements are required by law to give a true and fair view of the state of affairs of the Company and the Group for that period.
In preparing those financial statements, the Directors are required to:-
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state that the financial statements comply with IFRS and adopted by the European Union;
• prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the Group will continue in business,
in which case there should be supporting assumptions or qualifications as necessary. Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
11
The Directors confirm that they have complied with the above requirements in preparing the financial statements.
The Directors are responsible for keeping proper accounting records that 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 and the Directors’ remuneration report comply with the
Companies Act 1985 and, as regards the group financial statements, article 4 of the IAS Regulation. They are also responsible for safeguarding the
assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the group web site, www.fulcrumpharma.com. Legislation in the UK governing
the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
By order of the Board
Lesley Wotherspoon
Company Secretary
26 November 2008
>DIRECTORS’ REPORT (continued)
For the year ended 31 August 2008
Fulcrum ANNUAL REPORT AND ACCOUNTS 2007
11 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
12
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom
Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The Company’s shares are traded on the Alternative Investment Market (“AIM”) of the London Stock Exchange. The Group is therefore subject to
the AIM Admission Rules of the London Stock Exchange and is consequently not required to comply with the best practice corporate governance
provisions contained within the Combined Code (2003) and its 2006 revised version appended to the Listing Rules of the Financial Services
Authority.
The Board
The Board currently comprises the executive and non-executive Directors. Following the recent Board changes in September 2008, the Board now
has a majority of non-executive Directors. A minimum of six Board meetings are held annually. The Board is responsible for overall strategy, major
finance matters and internal financial control. It also monitors executive management in the business through its review of financial, strategic and
operational matters. All Directors are subject to retirement by rotation.
Board committees
The Board has established Audit, Remuneration and Nominations Committees, each with defined terms of reference. 
The Audit Committee comprises Mr G Cook, Professor Sir C George, Dr M Carter and Mr K Lacey. It meets at least twice each year and is
responsible for ensuring that the financial performance of the Group is properly reported on and monitored, for meeting the auditors and reviewing
the reports from the auditors relating to the financial statements.
The Remuneration Committee comprises Dr A Bell, Mr G Cook and Mr F Condella. It meets at least twice each year and reviews the performance of
the executive Directors and sets the scale and structure of their remuneration having due regard to the interests of the shareholders. The Committee
also manages the share option schemes.
The Nominations Committee was established during the year and is composed of at least three members, the majority of which are non-executive
Directors. It meets as appropriate to review the structure, size and composition of the Board, give full consideration to succession planning for
Directors and other senior executives and keeps under review the leadership needs of the Group.
Internal financial control
The Directors are responsible for ensuring that the Group maintains a system of internal financial control to provide them with reasonable assurance
regarding the reliability of financial information used within the business and that the assets are safeguarded. There are inherent limitations in any
system of internal financial control and, accordingly, even the most effective system can provide only reasonable, but not absolute, assurance with
respect to the preparation of financial information and the safeguarding of assets.
The Group, in administering its business, has put in place strict authorisation, approval and control levels within which senior management operates.
These controls reflect the Group’s organisational structure and business objectives. This control system includes clear lines of accountability to cover
all areas of the organisation. The Board operates procedures to identify the major business risks facing the Group and controls those risks. The
Group also has a budgeting and reporting system in place with results compared to budget, variance analysis and re-forecasting of projected results.
Going concern
The Directors have reviewed the Group’s budgets and forecasts with respect to its financial position as at 31 August 2008. After taking into
consideration the cash flow implications of these plans, the Directors are satisfied that it is appropriate to produce the Group financial statements on
a going concern basis.
By order of the Board
Professor Sir Charles George
Non-executive Chairman
26 November 2008
>CORPORATE GOVERNANCE STATEMENT
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
13
We have audited the Group and the Company financial statements (the “financial statements”) of Fulcrum Pharma plc for the year ended
31 August 2008 which comprise the Consolidated income statement, the Consolidated and Company balance sheets, the Consolidated and
Company cash flow statements, the Company statement of changes in equity, the Consolidated statement of recognised income and expense and
the related notes. These financial statements have been prepared under the accounting policies set out therein.
Respective responsibilities of Directors and auditors
The Directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the European Union are set out in the Statement of Directors’ responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on
Auditing (UK and Ireland). This report, including the opinion, has been prepared for and only for the company’s members as a body in accordance
with Section 235 of the Companies Act 1985 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior
consent in writing.
We report to you our opinion as to whether the financial statements give a true and fair view and have been properly prepared in accordance with
the Companies Act 1985. We also report to you whether in our opinion the information given in the Directors’ report is consistent with the financial
statements. The information given in the Directors’ report includes that specific information presented in the Chairman’s statement and the Chief
Executive’s review that is cross referred from the Business review section of the Directors’ report. 
In addition we report to you if, in our opinion, the company has not kept proper accounting records, if we have not received all the information and
explanations we require for our audit, or if information specified by law regarding Directors’ remuneration and other transactions is not disclosed.
We read other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. The other
information comprises only the Directors’ Report, the Chairman’s statement and the Chief Executive’s review and all of the other information listed
on the contents page. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies
with the financial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment
of the significant estimates and judgments made by the Directors in the preparation of the financial statements, and of whether the accounting
policies are appropriate to the Group’s and Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us
with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or
other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial
statements.
Opinion
In our opinion:
• the Group financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union, of the state
of the Group’s affairs as at 31 August 2008 and of the Group’s profit and cash flows for the year then ended; and
• the Company financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union as applied
in accordance with the provisions of the Companies Act 1985, of the state of the Company’s affairs as at 31 August 2008 and cash
flows for the year then ended;
• the Group financial statements have been properly prepared in accordance with the Companies Act 1985; and
• the information given in the Directors’ report is consistent with the financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
St Albans
27 November 2008
>INDEPENDENT AUDITORS’ REPORT
To the members of Fulcrum Pharma PLC Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
14
Year ended Year ended
31 August 2008 31 August 2007
Note £’000 £’000
Revenue 3 14,826 11,503
Cost of sales (7,966) (6,805)
Gross profit 6,860 4,698
Selling expenses (757) (504)
Administrative expenses (5,437) (4,103)
Other operating income 4 — 95
Operating profit 666 186
Finance income 7 69 42
Finance costs 7 (281) (77)
Profit on ordinary activities before taxation 454 151
Income tax expense 8 (130) (10)
Profit for the year 324 141
Earnings per share (pence)
Basic 10 0.19p 0.10p
Diluted 10 0.18p 0.09p
The notes on pages 19 to 52 are an integral part of these consolidated financial statements.
Year ended Year ended
31 August 2008 31 August 2007
Note £’000 £’000
Fair value gains net of tax:
— Available-for-sale financial assets 13 1 104
Net gain recognised directly in equity 1 104
Profit for the year 324 141
Total recognised income for the period 325 245
Currency translation differences 22 53 12
Total recognised gains attributable to the shareholders 378 257
>CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
For the year ended 31 August 2008
>CONSOLIDATED INCOME STATEMENT
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
15
31 August 2008 31 August 2007
Note £’000 £’000
Assets
Non current assets
Intangible assets 11 3,973 3,591
Property, plant and equipment 12 627 715
Available-for-sale financial assets 13 378 574
Deferred tax assets 20 57 —
5,035 4,880
Current assets
Trade and other receivables 15 5,704 5,923
Cash and cash equivalents 16 2,903 2,434
8,607 8,357
Liabilities
Current liabilities
Trade and other payables 17 (5,520) (5,363)
Current tax liabilities 17 (102) (31)
Bank overdrafts 16 — (217)
Bank and other borrowings 18 (337) (1,031)
Convertible loan notes 18 (148) (450)
Deferred cash consideration 17 (372) —
(6,479) (7,092)
Net current assets 2,128 1,265
Non current liabilities
Bank loans and other borrowings 18 (599) (116)
Convertible loan notes 18 (295) (136)
Deferred cash consideration 19 — (114)
Deferred tax liabilities 20 (73) —
(967) (366)
Net assets 6,196 5,779
Equity
Share capital 21 1,779 1,779
Share premium account 22 6,082 6,082
Merger reserve 22 (454) (454)
Retained earnings 22 (1,211) (1,628)
Total equity 6,196 5,779
The financial statements were approved by the Board of Directors on 26 November 2008 and were signed on its behalf by:
Frank Armstrong Geoffrey Smith
Director Director
>CONSOLIDATED BALANCE SHEET
As at 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
16
31 August 2008 31 August 2007
Note £’000 £’000
Assets
Non current assets
Investment in subsidiaries 14 5,531 4,932
5,531 4,932
Current assets
Trade and other receivables 15 4,052 4,881
Cash and cash equivalents 16 500 641
4,552 5,522
Liabilities
Current liabilities
Trade and other payables 17 (308) (362)
Bank and other borrowings 18 (250) (937)
Convertible loan notes 18 (148) (450)
Deferred cash consideration 17 (372) —
Current tax liabilities 17 — (1)
(1,078) (1,750)
Net current assets 3,474 3,772
Non current liabilities
Bank loans and other borrowings 18 (500) —
Convertible loan notes 18 (295) (136)
Deferred cash consideration 19 — (114)
(795) (250)
Net assets 8,210 8,454
Equity
Share capital 21 1,779 1,779
Share premium account 6,082 6,082
Profit and loss account 349 593
Total equity 8,210 8,454
The financial statements were approved by the Board of Directors on 26 November 2008 and were signed on its behalf by:
Frank Armstrong Geoffrey Smith
Director Director
Share 
Called up premium Retained
share capital account earnings Total
£’000 £’000 £’000 £’000 
At 1 September 2006 1,285 4,547 106 5,938
Retained profit for year — — 443 443
Issue of ordinary shares 494 1,535 — 2,029
Options compensation charge — — 14 14
Options compensation charge – capital contribution — — 50 50
Purchase of own shares for ESOP Trust — — (20) (20)
At 31 August 2007 1,779 6,082 593 8,454
Retained loss for year — — (283) (283)
Options compensation charge — — 12 12
Options compensation charge – capital contribution — — 26 26
Purchase of own shares for ESOP Trust — — 1 1
At 31 August 2008 1,779 6,082 349 8,210
>COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 August 2008
>COMPANY BALANCE SHEET
As at 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
17
Year ended Year Ended
31 August 2008 31 August 2007
Note £’000 £’000
Continuing operations
Profit before tax 454 151
Adjustments for:
Depreciation of property, plant and equipment 283 275
Amortisation of intangible assets 191 111
Share based payments 38 64
Loss on disposal of fixed assets — 48
Net finance costs 212 35
Changes in working capital:
Decrease/(increase) in trade and other receivables 335 (1,390)
(Decrease)Increase in payables (20) 1,580
Cash generated by operations 1,493 874
Cash (absorbed by)/generated from operating activities
Interest received 72 39
Interest paid — bank and other loans (108) (44)
Taxation paid (64) (78)
Net cash (absorbed by)/generated from operating activities (100) (83)
Cash used in investing activities
Purchase of property, plant and equipment (180) (450)
Acquisition of a subsidiary 26 135 (2,398)
Net overdraft acquired with subsidiary — (58)
Net cash used in investing activities (45) (2,906)
Financing activities
Issuing of ordinary shares 22 — 2,029
Increase in bank borrowings 43 1,043
Repayment of bank loans (282) (104)
Repayment of obligations under finance leases (10) (17)
Loan note repayments (450) (740)
Sale/(purchase) of shares for Employee Share Option Plan Trust 1 (20)
Net cash (used by)/generated from financing activities (698) 2,191
Effect of foreign exchange rate changes on cash and cash equivalents 36 56
Net increase in cash and cash equivalents 686 132
Cash and cash equivalents at the beginning of the period 2,217 2,085
Cash and cash equivalents at the end of the period 16 2,903 2,217
>CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
18
Year ended Year Ended
31 August 2008 31 August 2007
Note £’000 £’000
Continuing operations
Loss before tax (287) (109)
Adjustments for:
Share based payments 12 13
Net finance costs (87) (83)
Changes in working capital:
Decrease/(increase) in trade and other receivables 673 (99)
(Decrease)Increase in payables (16) (89)
Cash generated/(absorbed) by operations 295 (367)
Cash generated from operating activities
Interest received 162 138
Interest paid — bank and other loans (94) (25)
Taxation (paid)/received (3) 101
Net cash generated from operating activities 65 214
Cash/received (used) in investing activities
Acquisition of a subsidiary 26 135 (2,390)
Dividends received from subsidiary companies — 450
Net cash/received (used) in investing activities 135 (1,940)
Financing activities
Issuing of ordinary shares — 2,029
Increase in bank borrowings — 1,000
Repayment of bank loans (187) (61)
Loan note repayments (450) (740)
Sale/(purchase) of shares for Employee Share Option Plan Trust 1 (20)
Net cash (used by)/generated from financing activities (636) 2,208
Net increase in cash and cash equivalents (141) 115
Cash and cash equivalents at the beginning of the period 641 526
Cash and cash equivalents at the end of the period 16 500 641
>COMPANY CASH FLOW STATEMENT
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
19
1. GENERAL INFORMATION
Fulcrum Pharma Plc (“the Company”) and its subsidiaries (together “the Group”) are professional service companies providing clients with expert
solutions for the development of therapeutic products. The Company is a public limited company incorporated and domiciled in England. The
address of its registered office is Hemel One, Boundary Way, Hemel Hempstead, Herts, HP2 7YU, UK.
The Company is listed on the London AIM stock exchange.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European
Union and IFRIC interpretations and with those parts of the Companies Act 1985 applicable to companies reporting under IFRS. These are the
Group’s and Company’s first financial statements prepared under IFRS and IFRS 1 has been applied. Details of how the Group’s results and financial
position are affected by the change to IFRS are set out in Note 29.
The financial statements have been prepared under the historical cost convention except for certain items that have been measured at fair value as
detailed in the individual accounting policies below. 
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make judgements,
estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates
and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances,
the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily available from other
sources. Actual results may differ from these estimates. The accounting estimates that have the most risk of causing a material adjustment to the
carrying value of assets and liabilities are in relation to the impairment of goodwill, as discussed below.
The accounting policies set out below have been applied consistently for all periods presented in these financial statements and in preparing an
opening IFRS balance sheet at 1 September 2006 for the purpose of the transition to IFRS.
Basis of consolidation
The Group financial statements consolidate the results of Fulcrum Pharma plc and its subsidiaries and the Employee Share Option Plan Trust
(“ESOP Trust”) drawn up to 31 August 2008. The results of all the subsidiaries, with the exception of Fulcrum Pharma (Europe) Limited, have been
consolidated using the principles of acquisition accounting. Fulcrum Pharma (Europe) Limited, which was acquired in March 2000, has been
consolidated using the principles of merger accounting.
Inter-company transactions, profits and balances are eliminated in full on consolidation.
The Company has not presented its own profit and loss account as permitted by section 230(3) of the Companies Act 1985.
Revenue recognition
Revenue, which is stated net of value added tax, represents amounts invoiced to third parties, excluding pass-through costs from suppliers, except in
respect of long-term contracts where turnover represents the sales value of work performed in the year, including estimates in respect of amounts
not invoiced. Revenue in respect of long-term contracts is calculated as that proportion of total contract value which costs incurred to date bear to
total expected costs for that contract.
Profit on long-term contracts is recognised as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit
included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, on a contract by contract basis, by
recording turnover and related costs as contract activity progresses. Revenue derived from variations on contracts is recognised only when they have
been agreed with the client. Full provision is made for losses on all contracts in the year in which they are first foreseen.
Milestone payments due under contractual relationships are recorded as revenue when all work related to the milestone is completed.
Government grants
Government grants which are granted under job creation schemes are recognised in the income statement on a basis that matches the costs of
employment. The grants receivable are credited to the profit and loss account as the criteria for payment of each instalment are met.
Foreign currencies
The consolidated financial statements are presented in pounds sterling, which is the Company’s functional and presentational currency. The Group
determines the functional currency of each entity and items included in the financial statements of each entity are measured using that functional
currency.
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in
foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date and the gains or losses on translation are included in the
income statement.
>NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
20
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Assets and liabilities of subsidiaries in foreign currencies are translated into sterling at rates of exchange ruling at the end of the financial year and
the results of foreign subsidiaries are translated at the average rate of exchange for the year. Differences on exchange arising from the retranslation
of the opening net investment in subsidiaries, and from the translation of the results of those undertakings at the average rate, are taken to reserves
and are reported in the Statement of Recognised Income and Expense. All other foreign exchange differences are taken to the income statement in
the year in which they arise and are included in operating profit.
As permitted by IFRS 1 “First time adoption of IFRS”, the Group elected to deem the cumulative translation differences arising on the consolidation
of overseas subsidiaries at the date of transition to IFRS to be nil.
Employee benefits — Share-based compensation
The Group issues equity-settled share payments to certain employees. In accordance with IFRS 2 “Share-based payments”, equity-settled share-
based payments are measured at fair value at the date of grant. Fair value is measured by use of the Black-Scholes pricing model. 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 the number of shares that will ultimately vest. The Group has applied the exemption available and has applied the provisions of
IFRS 2 only to those options awarded after 7 November 2002 and which were outstanding at 1 September 2006. At each balance sheet date, the
group revises its estimates of the number of options that are expected to vest. The Group recognises the impact of the revision to original estimates,
if any, in the income statement with a corresponding adjustment to equity.
Financial instruments
Financial assets and financial liabilities are recognised in the Group’s balance sheet when the Group becomes a party to the contractual provision of
the instrument.
Investments
Investments are recognised at the trade date. Investments (other than investments in subsidiary undertakings) are classified as available-for-sale and
are recognised at fair value. Gains and losses arising from changes in the fair value of available-for-sale investments are recognised directly in equity,
until the security is disposed of or it is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is
included in the net result for the year within finance income or finance costs.
Investments in subsidiary companies are stated at cost less impairment.
Investments are reviewed for impairment if events or circumstances indicate the carrying value may not be recoverable.
Interest-bearing borrowings
Interest-bearing bank loans and overdrafts are initially recorded at fair value, net of attributable transaction costs. Subsequent to initial recognition,
interest-bearing borrowings are stated at amortised cost. Interest payable on bank loans and overdrafts is written off to the income statement using
the effective interest rate method.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity
instrument is any contract that gives a residual interest in the assets of the group or company after deducting all of its liabilities.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
Compound financial instruments.
Compound financial instruments are split between the liability and equity components at the date the financial instrument is issued. The fair value
of the liability element is calculated using the market interest rate of an equivalent non-convertible loan. The residual amount, representing the
value of the equity conversion option, is included in equity.
Pensions
The Group makes contributions to individual personal pension plans. The contributions are charged to the profit and loss account as they are
incurred.
Trade payables.
Trade payables are non-interest bearing and are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method.
Segment reporting.
A business segment is a group of assets and operations engaged in providing products or services that are subject to risk and returns that are
different from those of other business segments. A geographical segment is engaged in providing products or services within a particular economic
environment that are subject to risks and returns that are different from those of segments operating in other economic environments.
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
21
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on the taxable profit for the year. Taxable profit differs from profit reported in the income statement because the
former excludes items of income or expense that are either taxable or deductible in other years or that are never taxable or deductible, and it
includes tax reliefs that are not included in the income statement. The Group’s liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability
method. Deferred tax liabilities are provided in full on temporary differences, and deferred tax assets are recognised to the extent that it is probable
that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax is provided using the rates of tax
that are expected to apply in the period when the liability is settled or the asset is realised. 
Business combinations and goodwill
Goodwill arising on acquisitions is initially measured at cost, being the excess of the cost of acquisition over the Group’s share of net fair value of
the acquired entity’s identifiable assets and liabilities at the date of acquisition.
Goodwill is tested for impairment at least annually by assessing the recoverable amount of each cash-generating unit to which the goodwill relates.
The recoverable amount is the higher of fair value less cost to sell, and value in use. When the recoverable amount of the cash-generating unit is
less than the carrying amount, an impairment loss is recognised.
At the acquisition date of a subsidiary, goodwill acquired is recognised as an asset and is allocated to each of the cash-generating units.
Goodwill arising on acquisitions before 1 September 2006 (the date of transition to IFRS) was retained at the previous UK GAAP amounts subject to
being tested for impairment at that date.
Intangible fixed assets
Acquired intangible assets are stated at cost, net of amortisation and any provision for impairment. Amortisation is provided on intangible fixed
assets at rates calculated to write off the cost, less estimated residual value, of each asset on a straight-line basis over its expected useful economic
life, as follows:
Trade name — one year
Customer relationships — six years
Order book — one year 
Database — three years
The carrying values of intangible fixed assets are reviewed for impairment if events or circumstances indicate the carrying value may not be
recoverable.
Property, plant and equipment
Property, plant and equipment is stated at cost, less accumulated depreciation and any provision for impairment. Depreciation is provided at rates
calculated to write off the cost, less estimated residual value, of each asset on a straight-line basis over its expected useful economic life, as follows:
Leasehold improvements — over the lease term
Fixtures and fittings — five years
Computer equipment — two — five years
The carrying values of tangible fixed assets are reviewed for impairment if events or circumstances indicate the carrying value may not be
recoverable.
Trade receivables and other receivables.
Trade receivables are non-interest bearing and are recognised initially at fair value, and subsequently measured at amortised cost using the effective
interest rate method less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence
that the Group will not be able to collect all amounts due according to the original terms of the receivables.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits held at call with banks, other short-term highly liquid investments, available with no
penalty, with original maturities of three months or less and bank overdrafts. Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
22
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Finance and operating leases
Rentals payable under operating leases are charged to the profit and loss account on a straight-line basis over the lease term.
Leasing agreements which transfer to the Group substantially all the benefits and risks of ownership of an asset are treated as if the asset had been
purchased outright. Assets under these leasing arrangements are recognised at their fair value or, if lower, at the present value of the minimum
lease payments, each determined at the inception of the lease and depreciated over the shorter of their expected useful lives and the lease term.
The assets are included in fixed assets and the capital element of the leasing commitments is shown as obligations under finance leases. The lease
rentals are treated as consisting of capital and interest elements. The capital element is applied to reduce the outstanding obligations and the
interest element is charged to the profit and loss account. Assets held under finance leases are depreciated over the shorter of the lease terms and
the useful lives of equivalent owned assets.
ESOP Trust
The Group has adopted SIC 12 “Consolidation — special purpose entities” in accounting for the ESOP Trust in the consolidated financial
statements. The Company recognises the assets and liabilities of the ESOP Trust in its own financial statements, and shares held by the trust are
recorded at cost less impairment as a deduction in arriving at shareholders’ funds until such time as the shares vest unconditionally to employees. 
Recent accounting developments
At the date of the authorisation of these financial statements, there are a number of standards, amendments and interpretations that have been
published. The Company has not early adopted any standards, amendments or interpretations.
The standards, amendments and interpretations that are expected to impact upon the Company are:
IAS 23 (Amendment) “Borrowing costs’” — the amendment to the standard requires an entity to capitalise borrowing costs directly attributable to
the acquisition, construction or production of a qualifying asset (one that takes a substantial period of time to get ready for use or sale) as part of
the cost of that asset. The option of immediately expensing borrowing costs is removed. The amendment will apply to the Group from the annual
period commencing 1 September 2009.
IAS 1 (Amendment) ‘”Presentation of Financial Statements” — this amendment prohibits the presentation of items of income and expense (that is
‘non-owner changes in equity’) in the statement of changes in equity. Revised IAS 1 also sets out the additional disclosure requirements for entities
making restatements or reclassifications. The amendment will apply to the Group from the annual period commencing 1 September 2009.
IFRS 2 (Amendment) “Share-based payments’” — this amendment clarifies that vesting conditions are service and performance conditions only.
It also specifies that all cancellations should receive the same accounting treatment, whether cancelled by the entity or by other parties. The
amendment will apply to the Group from the annual period commencing 1 September 2009.
IFRS 3 (Amendment) “Business combinations’” — this amendment includes some significant changes to how the acquisition method is applied to
business combinations. This amendment applies to the Group from the annual period commencing 1 September 2009.
The following standards, amendments and interpretations are not expected to have any material impact on the financial statements of the
Company:
IFRS 8 “Operating segments” applies to the Group from the annual period commencing 1 September 2008. IFRS 8 amends the current segmental
reporting requirement of IAS 14 and requires ‘management approach’ to be adopted so that segment information is presented on the same basis as
that used for internal reporting purposes.
IAS 27 (Amendment) “Consolidated and separate financial statements” applies to the Group from the annual period commencing 1 September
2010. The revised standard requires the effects of all transactions with non-controlling interests to be recorded in equity if there is no change in
control.
IAS 32 (Amendment) “Financial Instruments: Presentation” and IAS 1 (Amendment) “Presentation of Financial Statements - Puttable Instruments
and Instruments with Obligations Arising on Liquidation” applies to the Group from the annual period commencing 1 September 2009.
IFRIC 12 “Service concession arrangements” applies to Group and Company from the annual period commencing 1 September 2008.
IFRIC 13 “Customer loyalty programmes” applies to the Group and Company from the annual period commencing 1 September 2008.
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
23
3. SEGMENTAL REPORTING
Primary reporting format — Business segments
Based on the risks and returns, the Directors consider that the primary reporting format is by business segment. The Directors consider that there is
only one business segment, being professional services to the pharmaceutical industry. Therefore, the disclosures for the primary segment have
already been given in the financial statements.
Secondary reporting format — Geographical segments
Although the Group is located in several different geographical areas, sales and costs are cross-charged around the group to such an extent that the
results of each location are significantly dependent on the activities of the others. The geographical segments are therefore considered to be the
secondary reporting format.
Revenue analysis
Revenue by origin Revenue by destination
2008 2007 2008 2007
£’000 £’000 £’000 £’000
United Kingdom 9,831 8,190 4,779 2,855
Europe — — 2,656 2,742
North America 2,431 1,411 2,787 1,962
Japan 2,564 1,902 3,999 2,930
Other countries — — 605 1,014
14,826 11,503 14,826 11,503
Total assets by asset location
Segment assets Capital expenditure
2008 2007 2008 2007
£’000 £’000 £’000 £’000
United Kingdom and Europe 10,239 10,072 164 416
North America 1,968 1,788 16 26
Japan 1,435 1,377 — 8
13,642 13,237 180 450
4. OTHER OPERATING INCOME
2008 2007 
£’000 £’000 
Government grants — 95 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
24
5. PROFIT ON ORDINARY ACTIVITIES
This is stated after charging/(crediting):
2008 2007
£’000 £’000 
Auditors’ remuneration:
— fees payable to the Company’s auditors for the audit of the prior year accounts 58 —
— fees payable to the Company’s auditors for the audit of the parent company and consolidated accounts 18 33
— fees payable to the Company’s auditors and associates for the audit of the Company’s subsidiaries pursuant 
to legislation 39 23
Amortisation of intangible fixed assets 191 111
Depreciation of tangible fixed assets — owned 271 258
Depreciation of tangible fixed assets — leased 12 17
Operating lease rentals:
— hire of plant & machinery 49 53
— property 446 456
Foreign exchange (gains)/losses through the income statement (74) 12
Income recognised in respect of Buncefield claim (14) (137)
As permitted by Section 230 of the Companies Act 1985, a separate profit and loss account for the parent company is not presented. The parent
company’s result for the year was a loss of £283,000 (2007: profit of £443,000).
6. STAFF COSTS
Staff costs 
Group Company Group Company
2008 2008 2007 2007
£’000 £’000 £’000 £’000
Wages and salaries 7,886 576 5,960 345
Social security costs 722 63 660 45
Pension costs 528 129 466 80
Share based employee remuneration (Note 27) 38 12 64 30
9,174 780 7,150 500
Staff numbers 
The average monthly number of employees (including executive Directors) during the year was:
Group Company Group Company
2008 2008 2007 2007
£’000 £’000 Number Number
Project management 103 — 98 —
Sales and administration 34 8 30 3
137 8 128 3
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
25
6. STAFF COSTS (continued)
Directors’ emoluments
The emoluments of the Directors for the year ended 31 August 2008 were £599,000 (2007: £427,000). The emoluments of each Director during
the period were as follows:
2008 2007
Compen-
Basic SharePensionsation Basic SharePension
salary basedcontribu-for loss salary based contribu-
and fees Bonus payment tions of office Total and fees Bonus payment tions Total 
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Executive:
Dr F M Armstrong 76 — 3 3 — 82 —————
Dr J P Court 77 9 — 8 53 147 114 — — 10 124
Mr C G G Smith 130 10 15 14 — 169 102 2 16 9 129
Dr J A Devlin 125 2 — 13 — 140 109 2 — 10 121
408 21 18 38 53 538 325 4 16 29 374
Non-executive:
Professor 
Sir C F George 20 ———— 20 20 — 1 — 21
Dr M Carter 16 ———— 16 16 — — — 16
Dr J A Bell 25 ———— 25 16 — — — 16
61 ———— 61 52 — 1 — 53
469 21 18 38 53 599 377 4 17 29 427
Mr G D Cook was appointed as Chairman designate on the 28 August 2008 but did not receive any emoluments until 1 September 2008.
Mr F C Condella and Mr K L Lacey have been appointed as non-executive Directors since the year end.
2008 2007 
£’000 £’000 
Members of money purchase pension schemes 4 3
7. FINANCE INCOME AND COSTS
Group
2008 2007
Note £’000 £’000
Interest income:
— Bank interest 69 42
Finance income 69 42
Interest expense:
— On bank loans and overdrafts (74) (49)
— On convertible loan stock (8) (28)
— In respect of finance leases (2) —
Fair value losses on financial instruments
— Impairment of available-for-sale financial assets 13 (197) —
Finance costs (281) (77)
Net finance costs (212) (35) Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
26
8. INCOME TAX EXPENSE
Group
2008 2007 
Note £’000 £’000 
Current taxation 111 10
Adjustments in respect of prior periods (3) —
Total current taxation 108 10
Deferred taxation 20 22 —
Taxation charge 130 10
The tax charge in the group’s profit before taxation differs from the theoretical amount using the weighted average tax rate applicable to profits of
consolidated entities as follows:
2008 2007
£’000 £’000 
Profit on ordinary activities before tax 454 151
Tax calculated at domestic tax rates applicable to profits in the respective countries 161 53
Effects of:
— Differences between capital allowances and depreciation 1 (1)
— Expenses not deductible for tax purposes 185 71
— Tax losses for the period not relieved — 75
— Tax losses for the period carried forward (55) (35)
— Research and development tax credits (181) (153)
Income tax expense 111 10
The weighted average applicable tax rate was 35.5% (2007: 35.1%). The reduction is caused by a change in the profitability of the group’s overseas
subsidiaries.
Effective from 1 April 2008, the rate of corporation tax in the United Kingdom reduced from 30% to 28%.
9. DIVIDENDS
No interim dividend was declared during the year (2007: £Nil). No final dividend has been proposed (2007: £Nil).
10. EARNINGS PER SHARE
2008 2007
Basic earnings per share 0.19p 0.10p
Diluted earnings per share 0.18p 0.09p
2008 2007 
Number Number 
Weighted average number of shares 177,940,745 147,633,249
Weighted average number of shares held by the ESOP Trust (4,264,364) (4,093,963)
Weighted average number of shares for basic earnings per share 173,676,381 143,539,286
Number of dilutive shares under option 2,107,702 9,222,005
Weighted average number of shares for diluted earnings per share 175,784,083 152,761,291
The basic earnings per ordinary share is based on the Group’s profit for the year of £324,000 (2007: £141,000) divided by the weighted average
number of ordinary shares in issue, excluding those shares held by the ESOP Trust.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted for the effects of potentially dilutive potential
ordinary shares.
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
27
11. INTANGIBLE FIXED ASSETS
Group
Goodwill Other Total
Note £’000 £’000 £’000
Cost
At 1 September 2006 1,216 — 1,216
Additions 1,875 611 2,486
At 31 August 2007 3,091 611 3,702
Additions 26 573 — 573
At 31 August 2008 3,664 611 4,275
Amortisation
At 1 September 2006 ———
Charge for the year — (111) (111)
At 31 August 2007 — (111) (111)
Charge for the year — (191) (191)
At 31 August 2008 — (302) (302)
Net book value
At 31 August 2008 3,664 309 3,973
At 31 August 2007 3,091 500 3,591
At 31 August 2006 1,216 — 1,216
Goodwill
Goodwill acquired on business combinations is not amortised but is reviewed for impairment on an annual basis or more frequently if there are any
indications that the goodwill may be impaired. Goodwill acquired in a business combination is allocated to groups of cash-generating units
according to the level at which management monitor that goodwill.
Recoverable amounts for cash-generating units are based on value in use calculations. The calculations use cash flow projections based on financial
forecasts over a period of six years. These cash flow projections have been discounted at 10%, the Group’s average cost of borrowings, and
approved by management. The key assumptions for the net present value calculations are those regarding growth rates and profitability during the
period.
Management estimate the growth rates based on industry growth forecasts of between 12% and 15% and a reasonable estimate of achievable
market share. Net profit is estimated at up to 15% based on industry averages and management’s expectations of the cash-generating units.
At 31 August 2008 and 2007, impairment reviews were performed by comparing the carrying value of goodwill with the value in use of the cash-
generating units to which goodwill has been allocated. The value in use exceeds the carrying value of goodwill by between 30% and 90%.
Management have concluded that there has been no impairment loss against goodwill for the years ended 31 August 2008 and 31 August 2007.
Other intangible assets
Other intangible assets consist of £470,000 of customer relationships, £66,000 of trade name and £75,000 of database validation acquired as part
of the purchase of Unicus Regulatory Services Limited in April 2007. These assets are being amortised over 1 — 6 years, being the expected life of
the assets from the date of purchase. Amortisation charges in the year have been charged to administrative expenses. There are no events that
would indicate any impairment.
Company
The Company has no intangible fixed assets. Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
28
12. PROPERTY, PLANT AND EQUIPMENT
Group
Computers and 
Leasehold office fixtures 
improvements and fittings Total
£’000 £’000 £’000
Cost
At 1 September 2006 259 879 1,138
Exchange adjustments (3) (13) (16)
Additions 163 287 450
Acquired with subsidiary — 293 293
Disposals (134) (139) (273)
At 31 August 2007 285 1,307 1,592
Exchange adjustments 13 37 50
Additions — 180 180
At 31 August 2008 298 1,524 1,822
Depreciation
At 1 September 2006 (134) (452) (586)
Exchange adjustments 11011
Charge for the year (50) (225) (275)
Acquired with subsidiary — (252) (252)
Disposals 87 138 225
At 31 August 2007 (96) (781) (877)
Exchange adjustments (6) (29) (35)
Charge for the year (51) (232) (283)
At 31 August 2008 (153) (1,042) (1,195)
Net book value
At 31 August 2008 145 482 627
At 31 August 2007 189 526 715
At 31 August 2006 125 427 552
The net book value of computers and office fixtures and fittings held under finance leases is £6,000 (2007: £16,000).
Company
The Company has no tangible fixed assets.
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
29
13. AVAILABLE-FOR-SALE FINANCIAL ASSETS
Group
2008 2007
£’000 £’000
At 1 September 574 469
Exchange adjustments recognised in income statement 3 —
Impairment recognised in income statement (200) —
Net exchange differences transferred to equity 50 (16)
Net (losses)/gains transferred to equity (49) 121
At 31 August 378 574
Available-for-sale financial assets include the following:
2008 2007
£’000 £’000
Listed investments:
Addex Pharmaceuticals SA (Swiss Francs) 278 277
Nanocarrier Co. Ltd (Japanese Yen) 100 —
Other investments:
Nanocarrier Co. Ltd (Japanese Yen) — 297
378 574
The Group owns a 0.19% stake in Addex Pharmaceuticals SA (2007: 0.19%). Under IFRS, this has been marked to market at 31 August 2007 and
2008.
The Group owns a 0.8% investment in Nanocarrier Co. Ltd (2007: 0.8%). At 31 August 2007, the investment was unlisted and valued at historical
cost. During the year, it was listed on the Tokyo Mother’s Market stock exchange and is therefore marked to market at 31 August 2008. In the year
to 31 August 2008, the Group recognised a net impairment of £197,000 (2007: £Nil) after exchange adjustments. The impairment arose as a result
of a delay in listing the investment as planned, a further private fundraising and subsequent dilution.
14. INVESTMENTS
Company
Capital 
contributions
Investments arising from 
in subsidiary share-based 
companies payments Total
£’000 £’000 £’000
Cost 
At 1 September 2007 2,010 109 2,119
Additions 2,763 50 2,813
At 31 August 2007 4,773 159 4,932
Additions 573 26 599
At 31 August 2008 5,346 185 5,531
The investments represent shares in subsidiary companies. The Company does not hold any trade investments. Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
30
14. INVESTMENTS (continued)
The Company owns the following subsidiaries:
Country of Proportion 
Company incorporation Class of share held (%) Principal activities
Fulcrum Pharma (Europe) Limited United Kingdom Ordinary 100 Drug development & professional services 
(formerly Fulcrum Pharma Developments Limited)
Fulcrum Pharma Developments Limited United Kingdom Ordinary 100 Dormant
Fulcrum Pharma Developments United Kingdom Ordinary 100 Holding company
International Limited
Quadramed Limited United Kingdom Ordinary 100 Dormant
Unicus Regulatory Services Limited United Kingdom Ordinary 100 Dormant
Unicus Ltd United Kingdom Ordinary 100 Dormant
Unicus Training Ltd United Kingdom Ordinary 100 Dormant
Unicus Coaching & Development Limited United Kingdom Ordinary 100 Dormant
Fulcrum Ventures Limited United Kingdom Ordinary 100 Dormant
Fulcrum Regulatory Limited United Kingdom Ordinary 100 Dormant
Fulcrum Regulatory Services Limited United Kingdom Ordinary 100 Dormant
Fulcrum Pharma Developments Inc. US Ordinary 100 Drug development & professional services
GPB KK Japan Ordinary 100 Holding company
Fulcrum Pharma KK Japan Ordinary 100 Drug development & professional services
Niphix KK Japan Ordinary 100 Clinical Research Organisation
Fulcrum Pharma Developments International Limited owns 100% of the share capital of Fulcrum Pharma Developments Inc. and GPB KK, and
GPB KK owns 100% of the share capital of Fulcrum Pharma KK and Niphix KK.
On 1 April 2008, Fulcrum Pharma Developments Ltd was renamed Fulcrum Pharma (Europe) Limited and became the single trading entity in Europe.
This integrated the businesses of the acquired subsidiary companies, Quadramed Ltd and Unicus Regulatory Services Ltd with that of Fulcrum
Pharma Developments Ltd. Quadramed Ltd and Unicus Regulatory Services Ltd were subsequently made dormant.
15. TRADE AND OTHER RECEIVABLES
Group Company Group Company
2008 2008 2007 2007
£’000 £’000 £’000 £’000 
Trade receivables 3,467 — 3,329 —
Less provision for impairment of trade receivables (44) — (22) —
Net trade receivables 3,423 — 3,307 —
Amounts owed by subsidiary undertakings — 3,999 — 4,660
Corporation tax recoverable 39 11 17 6
Other receivables 468 14 785 190
Prepayments and accrued income 1,774 28 1,814 25
5,704 4,052 5,923 4,881
Included in Company debtors, within amounts owed by subsidiary undertaking, is an amount of £2,500,000 (2007: £2,500,000) due after more
than one year. 
There is no material difference between the book value and carrying value of trade and other receivables for both the Company and the Group.
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
31
15. TRADE AND OTHER RECEIVABLES (continued)
The ageing of the Group’s trade receivables at 31 August is detailed below:
2008 2007 
£’000 £’000 
Not yet due 2,036 2,054
Due 1,224 771
One month past due 173 331
Two to three months past due 32 86
More than four months past due 2 87
3,467 3,329
The Group’s policy requires clients to pay in accordance with agreed payment terms. The settlement terms are generally due within 30 days from the
end of the month of sale and do not bear any effective interest rate. All trade receivables are subject to credit risk exposure. However, the Group
does not identify specific concentrations of credit risk with regards to trade and other receivables, as the amounts recognised resemble a large
number of receivables from various clients. The Group does not hold any collateral or security. The Group has a strict credit control process. As the
majority of the Group’s clients are large companies with whom the Group has long standing relationships, the risk of default is considered to be low
and write offs due to bad debts are extremely low. The maximum exposure to credit risk at the reporting date is the fair value of each class of
receivable mentioned above.
The Company has no trade receivables.
Trade and other receivables are denominated in the following currencies for the Group:
Sterling Yen US Dollar Euro Total
£’000 £’000 £’000 £’000 £’000
As at 31 August 2008 3,518 575 1,231 380 5,704
As at 31 August 2007 3,541 832 1,270 280 5,923
All of the Company’s trade and other receivables are denominated in Sterling.
Movements on the Group’s provision for impairment of trade receivables are as follows:
2008 2007
£’000 £’000
As at 1 September 22 55
Provision for receivables impairment 22 —
Receivables written off during the year as uncollectable — (33)
As at 31 August 44 22
The creation of provision for impaired receivables has been included in administrative expenses. Amounts charged to the allowance account are
generally written off where there is no expectation of recovery. The Company has no provision for impaired receivables.
The other classes within trade and other receivables do not contain impaired amounts.
16. CASH AND CASH EQUIVALENTS
Group Company Group Company 
2008 2008 2007 2007
£’000 £’000 £’000 £’000 
Cash at bank and in hand 2,403 — 1,934 141
Short-term investments 500 500 500 500
Bank overdrafts —— (217) —
2,903 500 2,217 641 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
32
17. TRADE AND OTHER PAYABLES — CURRENT
Group Company Group Company
2008 2008 2007 2007
£’000 £’000 £’000 £’000 
Trade payables 1,594 10 1,467 16
Amounts owed to Group undertakings —9 —19
Corporation tax 102 — 31 1
Other taxes and social security costs payable 187 21 254 4
Deferred cash consideration 372 372 ——
Other payables 347 191 390 235
Accruals and deferred income 3,392 77 3,252 88
5,994 680 5,394 363
18. BORROWINGS
Group Company Group Company 
2008 2008 2007 2007
£’000 £’000 £’000 £’000 
Current:
Bank loans 332 250 1,020 937
Finance lease obligation 5— 11 —
Convertible loan notes 148 148 450 450
485 398 1,481 1,387
Non-Current:
Bank loans 598 500 111 —
Finance lease obligation 1— 5—
Convertible loan notes 295 295 136 136
894 795 252 136
1,379 1,193 1,733 1,523
Bank loans and overdrafts are unsecured. There is no difference between the fair value and carrying value of borrowings.
See note 23 for the break down by currency and for details of the convertible loan notes.
19. TRADE AND OTHER PAYABLES — NON-CURRENT
Group Company Group Company
2008 2008 2007 2007
Note £’000 £’000 £’000 £’000 
Deferred cash consideration 27 —— 114 114
—— 114 114
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
33
20. DEFERRED TAXATION
2008 2007 
£’000 £’000 
Deferred tax assets:
Deferred tax asset — US 12 —
Deferred tax asset — Japan 45 —
57 —
Deferred tax liabilities:
Deferred tax liability — UK (73) —
(73) —
Net deferred tax liabilities (16) —
The movements in deferred taxation during the current and previous years are as follows:
2008 2007 
£’000 £’000 
At 1 September — —
Income statement charge (73) —
Income statement credit 51 —
Foreign exchange movement 6 —
At 31 August (16) —
Deferred taxation provided in the financial statements is as follows:
2008 2007
£’000 £’000 
Short term timing differences (100) —
Capital allowances in advance of depreciation (21) (5)
Tax losses carried forward 48 5
Income statement charge (73) —
2008 2007
£’000 £’000 
Short term timing differences 51 —
Income statement credit 51 —
There is an unrecognised deferred tax asset on losses carried forward of £527,000 at 31 August 2008 (2007: £517,000). The potential deferred tax
asset in respect of cumulative losses has not been recognised in these financial statements as the Directors believe that there is no immediate
prospect of these being utilised.
The Company has no deferred taxation. Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
34
21. SHARE CAPITAL
Authorised Authorised
2008 2008 2007 2007
Number £’000 Number £’000 
Ordinary shares of 1p each 400,000,000 4,000 400,000,000 4,000
Allotted, called up Allotted, called up
and fully paid and fully paid
2008 2008 2007 2007
Number £’000 Number £’000
Ordinary shares of 1p each
At 31 August 177,940,743 1,779 177,940,743 1,779
Share options
Options over ordinary shares of 1 pence each have been granted to Directors and employees under share option schemes. The Company has issued
options as follows:
Held at Held at Granted
1 September 31 August since At date of 
2007 Granted Lapsed/Cancelled Exercised 2008 year end this report
Number Number Number Number Number Number Number
Professor Sir C F George 225,000 — — — 225,000 — 225,000
Dr F M Armstrong — 7,200,000 — — 7,200,000 — 7,200,000
Mr C G G Smith 7,300,000 — — — 7,300,000 — 7,300,000
Employees
— EMI (approved) 15,371,020 600,000 (1,373,755) (40,563) 14,556,702 — 14,556,702
— approved scheme 444,444 — — — 444,444 — 444,444
— US approved 3,600,000 1,200,000 (800,000) — 4,000,000 — 4,000,000
— unapproved scheme 7,536,379 535,252 — (149,906) 7,921,725 — 7,921,725
ESOP 7,888,791260,000(30,000)— 8,118,791 — 8,118,791
42,365,634 9,795,252 (2,203,755) (190,469) 49,766,662 — 49,766,662
Each of the Group’s schemes above has standing vesting periods of three years. The details of the individual grants are set in Note 27.
The market price of the Company’s shares at the end of the financial year was 2.75 pence and the range of market prices was between 2.50 pence
and 3.75 pence during the year ended 31 August 2008.
The ESOP Trust was set up in June 2002 to benefit the employees of the Company. The Scheme is administered by Pinnacle Trustees Limited, an
independent professional trust company resident in Jersey. The ESOP Trust provides for the issue of options to Fulcrum Pharma plc employees at the
discretion of the trustee acting upon the recommendation of the Board.
Funding for the share purchases by the ESOP Trust was provided by a loan from the Company.
At 31 August 2008, the ESOP Trust held 4,397,014 ordinary shares (2007: 4,355,687) with a cost of £178,000 (2007: £179,000) and a market
value of £121,000 (2007: £152,000). All costs relating to the Trust are dealt with in the profit and loss account as they accrue. The total costs
charged to the profit and loss account for the year ended 31 August 2008 were £4,000 (2007: £4,000).
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
35
22. STATEMENT OF CHANGES IN EQUITY
Group
Retained earnings
Share
Called up premium Merger Available-for- Retained
share capital account reserve sale assets Translation earnings Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
At 1 September 2006 1,285 4,547 (454) — — (1,929) 3,449
Retained profit for year ————— 141 141
Fair value gains on available for sale assets — — — 104 — — 104
Issue of ordinary shares 494 1,535 ———— 2,029
Options compensation charge ————— 64 64
Sale/purchase of shares for ESOP Trust ————— (20) (20)
Unrealised exchange loss on consolidation———— 12 — 12
At 31 August 2007 1,779 6,082 (454) 104 12 (1,744) 5,779
Retained profit for year ————— 324 324
Fair value gains on available for sale assets — — — 1 — — 1
IFRS 2 charge ————— 38 38
Sale/purchase of shares for ESOP Trust ————— 1 1
Unrealised exchange loss on consolidation———— 53 — 53
At 31 August 2008 1,779 6,082 (454) 105 65 (1,381) 6,196 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
36
23. FINANCIAL INSTRUMENTS
The financial risks faced by the Group include market risk (including foreign exchange risk, cash flow and fair value interest rate risk), credit risk and
liquidity risk. The Board reviews and agrees policies for managing each of these risks.
The Group’s main objectives in using financial instruments are the maximisation of returns from funds held on deposit and, when appropriate, the
generation of additional cash resources for Group operations through financing arrangements for capital assets and through the issue of shares and
other financing instruments. The main purpose of these financial instruments is to provide working capital for the Group’s operations in the UK,
Japan and US.
The Group’s policy is to raise cash when it is required and when market conditions are appropriate, using those financial instruments that can be
negotiated with the providers of finance at that time. These instruments include bank loans and finance leases.
Classification
Classification of the Group’s financial instruments is given below:
2008
Sterling Yen US Dollar Euro Swiss Franc Total
£’000 £’000 £’000 £’000 £’000 £’000
Financial assets
Loans and receivables:
Cash and cash equivalents 951 597 1,252 103 — 2,903
Trade and other receivables 3,518 575 1,231 380 — 5,704
4,469 1,172 2,483 483 — 8,607
Available-for-sale:
Available-for-sale financial assets — 100 — — 278 378
— 100 — — 278 378
4,469 1,272 2,483 483 278 8,985
2008
Sterling Yen US Dollar Euro Total
£’000 £’000 £’000 £’000 £’000
Financial liabilities
Other financial liabilities:
Bank loans 750 180 — — 930
Obligations under finance leases —6 — — 6
Convertible loan notes 443 — — — 443
Trade and other payables 3,800 557 1,585 52 5,994
4,993 743 1,585 52 7,373
2007
Sterling Yen US Dollar Euro Swiss Franc Total
£’000 £’000 £’000 £’000 £’000 £’000
Financial assets
Loans and receivables:
Cash and cash equivalents 1,191 107 941 195 — 2,434
Trade and other receivables 3,541 832 1,270 280 — 5,923
4,732 939 2,211 475 — 8,357
Available-for-sale:
Available-for-sale financial assets — 297 — — 277 574
— 297 — — 277 574
4,732 1,236 2,211 475 277 8,931
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
37
23. FINANCIAL INSTRUMENTS (continued)
2007
Sterling Yen US Dollar Euro Swiss Franc Total
£’000 £’000 £’000 £’000 £’000 £’000
Financial liabilities
Other financial liabilities:
Bank overdrafts 217 ———— 217
Bank loans 938 193 — — — 1,131
Obligations under finance leases — 16 — — — 16
Convertible loan notes 586 ———— 586
Trade and other payables 3,759 291 1,440 10 8 5,508
5,500 500 1,440 10 8 7,458
A 10% weakening of sterling would result in a £176,000 increase in profits, while a 10% strengthening would have the opposite effect.
Classification of the Company’s financial instruments is given below:
2008 2007
Sterling Sterling
£’000 £’000
Financial assets
Loans and receivables:
Cash and cash equivalents 500 641
Trade and other receivables 4,052 4,881
4,552 5,522
2008 2007
Sterling Sterling
£’000 £’000
Financial liabilities
Other financial liabilities:
Bank loans 750 937
Convertible loan notes 443 586
Trade and other payables 680 476
1,873 1,999
Cash flow and fair value interest rate risk
The Group finances its operations through a mixture of retained cash reserves, finance leases and bank loans. The policy of the Group is to monitor
exposure to interest rate risk and take into account potential movements in interest rates when selecting methods of financing. However at present,
the level of Group borrowings is low and the interest rate risk at present is not considered to be significant. Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
38
23. FINANCIAL INSTRUMENTS (continued)
Interest rate profile of the Group’s financial liabilities
2008 2007
Floating Total Floating Total
Sterling Yen Sterling Yen
£’000 £’000 £’000 £’000 £’000 £’000 
Bank overdrafts ——— 217 — 217
Bank loans 750 180 930 938 193 1,131
Obligations under finance leases —66 —1616
Loan notes 443 — 443 586 — 586
1,193 186 1,379 1,741 209 1,950
Financial liabilities
The finance leases are at various variable rates of interest. The total of these liabilities outstanding at 31 August 2008 was £6,000 (2007: £16,000),
with a weighted average outstanding period of 9 months (2007: 16 months) and a weighted average interest rate of 2.83%(2007: 2.74%). The
bank loan facilities incurred interest at rates between 1.8% and 7.75% during the year. The total amount of bank loans outstanding at 31 August
2008 was £930,000 (2007: £1,133,000). The total amount of convertible loan notes outstanding at 31 August 2008 was £443,000 (2007:
£586,000) which incurred interest charges of 2% above the base rate of National Westminster Bank plc.
The Company has estimated that £443,000 of convertible loan notes will be issued as deferred consideration for the acquisition of Unicus
(see Note 26). The terms of the conversion are that the holder of the notes shall be entitled to convert the value of the notes into ordinary share
capital of the Company on the basis that the issue of one ordinary share satisfies 6 pence of loan note indebtedness. There is interest payable on
the convertible loan notes at the lower of 2% above the base rate of National Westminster Bank plc or 7.5%.
A 0.5% increase in LIBOR would reduce the Group’s profit by £7,000 and the Company’s profit by £6,000 in 2008. A 0.5% decrease would have
the opposite effect.
The maturity profile of the Group’s non-current liabilities at 31 August 20008 was as follows:
2008 2007
Finance Convertible Finance Convertible
Loans leases loan notes Total Loans leases loan notes Total
£’000 £’000 £’000 £’000 £’000 £’000 
One to two years 8 1 295 304 18 4 — 22
Two to five years 590 — — 590 93 1 136 230
598 1 295 866 111 5 136 252
The maturity profile of the Company’s non-current liabilities at 31 August 2008 was as follows:
2008 2007
Finance Convertible Finance Convertible
Loans leases loan notes Total Loans leases loan notes Total
£’000 £’000 £’000 £’000 £’000 £’000 
One to two years — — 295 295 ————
Two to five years 500 — — 500 — — 136 136
500 — 295 795 — — 136 136
Borrowing facilities
The Group had unused borrowing facilities of £nil at 31 August 2008 (2007: £15,000).
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
39
23. FINANCIAL INSTRUMENTS (continued)
Interest rate profile of the Group’s financial assets
The Group’s cash at bank and in hand and short-term investments at 31 August 2008 comprised:
2008
Sterling Yen US Dollar Euro Total
£’000 £’000 £’000 £’000 £’000
Short-term deposits 500 — — — 500
Cash at bank and in hand 451 597 1,252 103 2,403
951 597 1,252 103 2,903
2007
Sterling Yen US Dollar Euro Total
£’000 £’000 £’000 £’000 £’000
Short-term deposits 500 — — — 500
Cash at bank and in hand 691 107 941 195 1,934
1,191 107 941 195 2,434
The Group maintains sterling, euro, US dollar and yen accounts in which all cash and bank balances are held. The Company maintains sterling
accounts only. Cash and bank balances represent floating rate cash held in current accounts and deposit accounts with banks at interest rates based
on interbank rates. Short-term deposits represent fixed rate deposits placed with major clearing banks for up to three months earning interest at
rates of 4.75% — 5.37% (2007: 1.60% — 5.12%).
Currency risk profile
The Group’s functional currency is sterling, and the majority of its transactions are denominated in that currency. The Group operates in US dollars,
yen and euros. The Group also has overseas subsidiaries where the US subsidiary’s functional currency is US dollars and the Japanese subsidiaries’
functional currency is yen. The Group’s currency exposures, comprising foreign currency bank accounts at 31 August 2007, are shown below: 
2008
Yen US dollar Euro Total 
£’000 £’000 £’000 £’000
Foreign currency monetary (liabilities)/assets
Sterling 411 1,252 103 1,766
2007
Yen US dollar Euro Total
£’000 £’000 £’000 £’000
Foreign currency monetary assets/(liabilities)
Sterling (86) 941 195 1,050
The Company has no financial assets or liabilities denominated in foreign currencies.
Liquidity risk
The Board monitors the level of cash and liquid resources on a regular basis and manages it on a daily basis, to ensure that the Group has sufficient
liquid funds to enable it to continue as a going concern. This is achieved through the production and review of cash forecasts.
Credit risk
The Group’s credit risk arises from credit exposure to clients and Group companies and also with banks with which cash is held.
The Group has a strict credit control process. As the majority of the Group’s clients are large companies with whom the Group has long standing
relationships, the risk of default is considered to be low and write offs due to bad debts are extremely low.
The Board consider the risk of default of Group debtors to be negligible.
The Board ensures that deposits are only placed with banks which have a minimum credit rating of AA (Standard and Poor’s rating). Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
40
23. FINANCIAL INSTRUMENTS (continued)
Capital risk management
The Board’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for
shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
Fair values
There is no material difference between the fair value and the carrying value of the Group’s and Company’s financial assets and liabilities at
31 August 2008.
24. COMMITMENTS UNDER OPERATING LEASES TO PAY RENTALS
2008 2007
Land and 2008 Land and 2007
Buildings Other buildings Other
£’000 £’000 £’000 £’000 
Operating leases which expire:
In one year or less 42 5 27 —
In two to five years inclusive 383 2 470 —
425 7 497 —
25. PENSIONS
The Company makes contributions to individual personal pension plans. The total charge for the year was £528,000 (2007: £466,000). There are
unpaid contributions outstanding at the year end of £10,000 (2007: £3,000).
26. ACQUISITIONS
On 19 March 2007 the Company acquired the entire issued share capital of Unicus for an initial consideration of £2.3 million in cash, of which
£159,000 was refunded by the vendor pursuant to the sale and purchase agreement, and further consideration of £200,000 which was paid in
employee benefits. Deferred consideration of £815,000 based on the turnover of Unicus during the year ended 31 July 2008 is payable and had
been estimated at £250,000 in the financial statements as at 31 August 2007. The deferred consideration will be payable in cash and convertible
loan notes. The convertible loan notes are repayable in three equal instalments within the period 1 May 2009 to 1 May 2010. The terms of the
conversion are stated in Note 23.
27. SHARE-BASED PAYMENTS
The Group operates various share option schemes including an Employee Share Ownership Plan under which options are exercisable at a price equal
to middle market quotation from the Daily Official List of the London Stock Exchange for the trading day immediately preceding the date of grant.
The various schemes allow for granting of share options up to 15% of the issued ordinary share capital except for the grant of options over a
maximum of 20,000,000 shares to Directors and senior employees which was approved at the Company’s Extraordinary General Meeting on
12th April 2007. Grants are normally made within 42 days following the announcement of final or interim results of the company. No payment is
required for the grant of the share option. Performance criteria only apply to the grant of the maximum of 20,000,000 shares approved on
12th April 2007. The usual minimum vesting period is three years but options can vest earlier in certain circumstances such as staff incentive
arrangements in newly acquired subsidiaries, or events of redundancy or death.
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
41
27. SHARE-BASED PAYMENTS (continued)
IFRS 2
Details of the share options outstanding during the year that were issued after the 7th November 2002 by the Group are as follows:
2008 Weighted 2007 Weighted
average average
exercise exercise
price price
Pence Number Pence
Outstanding at 1 September 39,684,811 5.31p 20,330,052 4.08p
Granted during the year 9,795,252 6.77p 23,884,635 6.85p
Lapsed (2,203,755) 3.01p (3,348,057) 3.97p
Exercised (190,469) 1.00p (1,181,819) 1.00p
Outstanding at 31 August 47,085,839 6.20p 39,684,811 5.85p
Exercisable at 31 August 10,427,812 3.98p 7,358,541 5.31p
The options outstanding at the end of the year have a weighted contractual life of 7.94 years (2007: 8.91 years) and have a range of exercise prices
from 1p to 12p. The options charge for the year is disclosed in note 6. The estimated fair values of options granted since 7 November 2002 were
calculated using the Black-Scholes option pricing model with the following inputs and subsequent assumptions:
Grant date 1 Sep 16 Aug 1 Sep 20 May 1 Nov 8 Feb
2004 2004 2004 2005 2005 2006
Share price at grant date 7.00p 5.00p 6.00p 4.00p 3.75p 3.75p
Exercise price 7.00p 5.00p 6.00p 4.00p 3.75p 1.00p
Number of employees 18 302364
Shares under option 1,550,000 6,495,689 350,000 375,000 1,350,000 1,818,183
Vesting period (years) 333330
Expected volatility 68% 61% 62% 61% 56% 51%
Option life (years) 777779
Expected life (years) 333331
Risk free rates 4.81% 5.05% 5.00% 4.34% 4.64% 4.15%
Expected dividends ——————
Possibility of ceasing employment before vesting 30% 30% 30% 30% 30% 30%
Expectations of meeting performance criteria ——————
Fair value per option 3.38p 2.25p 2.71p 1.77p 1.52p 2.79p
Grant date 8 Feb 9 Feb 9 May 12 Jun 1 Sep 13 Nov
2006 2006 2006 2006 2006 2006
Share price at grant date 3.75p 3.75p 4.00p 3.875p 4.00p 3.75p
Exercise price 1.00p 3.75p 4.00p 3.875p 4.00p 3.75p
Number of employees 4 3 10 4 22 30
Shares under option 1,818,180 2,000,000 1,558,000 500,000 1,290,000 2,510,000
Vesting period (years) 233333
Expected volatility 52% 57% 52% 51% 46% 47%
Option life (years) 877777
Expected life (years) 233333
Risk free rates 4.18% 4.21% 4.76% 4.59% 4.64% 4.42%
Expected dividends ——————
Possibility of ceasing employment before vesting 30% 30% 30% 30% 30% 30%
Expectations of meeting performance criteria ——————
Fair value per option 2.84p 1.67p 1.59p 1.49p 1.16p 1.35p Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
42
27. SHARE-BASED PAYMENTS (continued)
Grant date 23 May 23 May 23 May 22 Jun 22 Jun 22 Jun
2007 2007 2007 2007 2007 2007
Share price at grant date 4.00p 4.00p 4.00p 4.00p 4.00p 4.00p
Exercise price 1.00p 1.00p 4.00p 6.00p 6.00p 12.00p
Number of employees 35 355444
Shares under option 2,062,318 2,062,317 1,050,000 4,050,000 4,050,000 8,100,000
Vesting period (years) 123233
Expected volatility 37% 40% 47% 41% 48% 48%
Option life (years) 987877
Expected life (years) 123233
Risk free rates 5.67% 5.62% 5.55% 5.77% 5.75% 5.75%
Expected dividends ——————
Possibility of ceasing employment before vesting 30% 30% 30% 30% 30% 30%
Expectations of meeting performance criteria — — — 100% 100% 100%
Fair value per option 3.06p 3.11p 1.51p 0.51p 1.00p 0.34p
Grant date 30 Nov 28 May 28 May 28 May 28 May
2007 2008 2008 2008 2008
Share price at grant date 3.375p 3.50p 3.50p 3.50p 3.50p
Exercise price 3.375p 3.50p 6.00p 6.00p 12.00p
Number of employees 14 12111
Shares under option 1,340,000 1,920,000 1,500,000 1,500,000 3.000.000
Vesting period (years) 33233
Expected volatility 45% 41% 41% 41% 41%
Option life (years) 77877
Expected life (years) 33233
Risk free rates 4.64% 4.64% 4.64% 4.64% 4.64%
Expected dividends —————
Possibility of ceasing employment before vesting 30% 30% 30% 30% 30%
Expectations of meeting performance criteria — — 100% 100% 100%
Fair value per option 1.19p 1.16p 0.32p 0.53p 0.11p
Share options granted prior to 7 November 2002
The movement in share options granted prior to 7 November 2002 is as follows:-
Subscription Number
Price per Number or shares Exercised/ of shares
Share 1 September 2007 Lapsed 31 August 2008 Periods within which exercisable
3.00p 300,000 — 300,000 31 Aug 2001 — 7 March 2010
3.00p 100,000 — 100,000 7 March 2003 — 7 March 2010
6.75p 2,280,823 — 2,280,823 4 July 2003 — 4 July 2010
2,680,823 — 2,680,823
There are no performance criteria in relation to the share options at subscription prices of 3.00p and the performance criteria of the share options at
6.75p have been met in the year ended 31 August 2001.
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
43
28. RELATED PARTY TRANSACTIONS
Key management
The Directors are of the opinion that the key management of the Group consists of the Directors and senior managers. The costs of employment of
the key management were:
2008 2007 
£’000 £’000 
Salaries and other short term employee benefits 1,015 954
Post-employment benefits 69 49
Share based payments 51 34
Termination benefits 53 —
1,188 1,037
The remuneration of the senior managers for the year ended 31 August 2008 was £589,000 (2007: £610,000). The remuneration of each senior
manager during the period was as follows:
2008 2007
Basic Share Pension
salary basedcontribu- Basic salary Share based Pension 
and fees Bonus payment tions Total and fees Bonus paymentcontributions Total 
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Senior managers:
Dr P Birch 125 41218 159 112 40 6 10 168
Dr S Arbe-Barnes 125 51112 153 114 5 5 10 134
Mr J Larus 36 — — 1 37 —————
Mr J Seman 20 ——— 20 105 — — — 105
Mr T Okuda 99 14 8 — 121 98 5 3 — 106
Mr K Fujimaru 9252 — 99 89 5 3 — 97
497 28 33 31 589 518 55 17 20 610
Intercompany transactions
During the year, the Company entered into transactions in the ordinary course of business with other related parties as follows:
2008 2007 
£’000 £’000 
Transactions during the year with subsidiary undertakings:
Costs recharged by subsidiary undertakings 755 452
Balance at 31 August with subsidiary undertakings:
Amounts due from subsidiary undertakings 3,999 4,660
Amounts due to subsidiary undertakings (9) (20)
Loans made to Employee Share Option Trust 178 180
During the year, the Group made a loan of £17,500 (2007: £20,000) to the Fulcrum Pharma Plc Employee Share Option Trust to acquire shares in
the Company to satisfy grants made under the share option plan. In addition, the group received £19,000 (2007: Nil) in repayment of this loan
during the year. Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
44
29. EXPLANATION OF TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS
Transitional arrangements
Under the provisions of IFRS 1 “First time Adoption of IFRS” specific exemptions may be applied in certain areas as part of the transition of the
financial statements to IFRS. The Group has elected to apply the following exemptions:
• IRFS 3 “Business Combinations”
IFRS 3 has been adopted from the transition date and is only being applied to acquisitions made on or after 1 September 2006.
IFRS also requires goodwill to be carried at cost with impairment reviews carried out at least annually. The Group has applied the
standard from the transition date and so the net carrying value of goodwill at 31 August 2006 has been brought forward as the
cost at 1 September 2006, with no amortisation charge from that date.
• IAS 21 “The Effects of Changes in Foreign Exchange Rates”
Under IAS 21 cumulative translation differences arising on the consolidation of overseas subsidiaries are being accumulated for each
individual subsidiary from the date of transition to IFRS and not from the original acquisition date.
IAS 17 “Leases”
IAS 17 requires companies to make an adjustment with respect to ‘Rent Free’ periods. Under UK GAAP , lease inducements such as rent free periods
are apportioned over the lease term until the first break point of the lease; under IFRS, the inducement is spread over the full term of the lease.
IAS 19 “Employee Benefits”
IAS 19 requires companies to make an accrual for holiday pay.
IAS 38 “Intangible assets”
Under UK GAAP , goodwill is amortised over its expected useful life. IAS 38 does not permit amortisation and instead is reviewed annually for
impairment.
IAS 39 “Financial asset available for sale”
Under UK GAAP , financial assets are carried at historic cost. Under IAS 39, the asset is “marked to market” and shown on the balance sheet at the
current market value and using the current foreign exchange rate. Movements in market value are recorded in equity unless there is an impairment,
in which case the cumulative loss is reported in the income statement.
IFRS 3 “Business Combinations”
IFRS 3 deals with accounting for business combinations including goodwill and intangible assets.
Under UK GAAP , the Group adopted FRS 10 “Goodwill and intangible assets” from March 2000 and goodwill arising on acquisitions after this date
was capitalised and amortised over its useful economic life, which was presumed to be ten years. Goodwill arising before this date was eliminated
against reserves. In addition, the Group tested for impairment when there was an indication that the carrying value of an asset might be impaired.
Under IFRS 3 this policy has been replaced by impairment tests performed annually or whenever there is an indication that the carrying value of an
asset might be impaired. Goodwill amortisation has also ceased.
At the transition date, the Group had goodwill assets with a net book value of £1,216,000, which under the transitional arrangements laid out in
IFRS 1 was deemed to be the costs carried forward for these assets from that date.
Although the Group has adopted IFRS 3 from the transition date, 1 September 2006, the Group completed the acquisition of Unicus Regulatory
Services Limited on 19 March 2007. The accounting treatment of this acquisition has therefore been reviewed in accordance with the requirements
of IFRS 3. As a result of this review, intangible assets have been separately identified, and goodwill has been reduced by the corresponding net
amount. The newly identified intangible assets are being amortised over one to six years.
Revenue reclassification
Historically, pass through sales have been included within revenue under UK GAAP . To reflect the underlying contractual arrangements and to give a
more accurate reflection of the actual trading, these zero-margin pass through sales have been eliminated in the IFRS financial statements.
The transition from UK GAAP to IFRS does not change the cash flows of the Group nor does it impact Group strategy or commercial decisions.
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
45
29. EXPLANATION OF TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (continued)
Reconciliation of the consolidated income statement for the period ended 31 August 2008 from UK GAAP to IFRS
Year ended 
31 August
IAS 17 IAS 19 IAS 38 IAS 39 IFRS 3 2008
Financial asset As restated in
Reformatted Revenue Employee Intangible available Business accordance
UK GAAP Reclassification Leases benefits assets for sale Combinations with IFRS
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Revenue 22,953 (8,127) ————— 14,826
Cost of sales (16,053) 8,127 — (40) — — — (7,966)
Gross profit 6,900 — — (40) — — — 6,860
Selling expenses (757) —————— (757)
Administrative expenses (5,234) — (2) (10) — — — (5,246)
Amortisation of intangible 
assets (461) — — — 461 — (191) (191)
Operating profit 448 — (2) (50) 461 — (191) 666
Finance income 69 —————— 69
Finance costs (184) ———— (97) — (281)
Profit on ordinary activities 
before taxation 333 — (2) (50) 461 (97) (191) 454
Income tax expense (171) — — 41 — — — (130)
Profit for the year 162 — (2) (9) 461 (97) (191) 324
Earnings per share (pence)
Basic 0.09 — — (0.01) 0.27 (0.06) (0.10) 0.19
Diluted 0.09 — — (0.01) 0.26 (0.06) (0.10) 0.18 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
46
29. EXPLANATION OF TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (continued)
Reconciliation of the consolidated balance sheet as at 31 August 2008 from UK GAAP to IFRS
31 August 2008
IAS 17 IAS 19 IAS 38 IAS 39 IFRS 3
Financial asset As restated in
Reformatted EmployeeIntangibleavailable Businessaccordance
UK GAAP Leases benefits assets for sale Combinations with IFRS
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Assets
Non current assets
Goodwill 3,553 — — 722 — (611) 3,664
Intangible assets ————— 309 309
Property, plant and equipment 627 ————— 627
Available-for-sale financial assets 370 — — — 8 — 378
Deferred tax assets 12 — 45 — — — 57
4,562 — 45 722 8 (302) 5,035
Current assets
Trade and other receivables 5,704 ————— 5,704
Short-term investments 500 ————— 500
Cash and cash equivalents 2,403 ————— 2,403
8,607 ————— 8,607
Liabilities
Current liabilities 
Trade and other payables (5,293) (13) (214) — — — (5,520)
Current income tax liabilities (102) ————— (102)
Bank and other borrowings (337) ————— (337)
Convertible loan notes (148) ————— (148)
Deferred cash consideration (372) ————— (372)
(6,252) (13) (214) — — — (6,479)
Net current assets 2,355 (13) (214) — — — 2,128
Non current liabilities
Bank loans and other borrowings (599) ————— (599)
Convertible loan notes (295) ————— (295)
Deferred tax liabilities (73) ————— (73)
(967) ————— (967)
Net assets 5,950 (13) (169) 722 8 (302) 6,196
Equity
Share capital 1,779 ————— 1,779
Share premium account 6,082 ————— 6,082
Merger reserve (454) ————— (454)
Retained earnings (1,457) (13) (169) 722 8 (302) (1,211)
Total equity 5,950 (13) (169) 722 8 (302) 6,196
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
47
29. EXPLANATION OF TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (continued)
Reconciliation of the consolidated income statement for the period ended 31 August 2007 from UK GAAP to IFRS
Year ended 
31 August
IAS 17 IAS 19 IAS 38 IAS 39 IFRS 3 2007
UK GAAP as IFRS Financial asset As restated in
previously Reclassifica- Employee Intangible available Business accordance
reported tion Leases benefits assets for sale Combinations with IFRS
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Revenue 19,237 (7,734) — — — — 11,503
Cost of sales (14,510) 7,734 — (29) — — — (6,805)
Gross profit 4,727 — — (29) — — — 4,698
Selling expenses (504) —————— (504)
Administrative expenses (3,980) — (4) (8) — — — (3,992)
Amortisation of 
intangible assets (261) — — — 261 — (111) (111)
Other operating income 95 —————— 95
Operating profit 77 — (4) (37) 261 — (111) 186
Finance income 42 —————— 42
Finance costs (77) —————— (77)
Profit on ordinary activities 
before taxation 42 — (4) (37) 261 — (111) 151
Income tax expense (10) —————— (10)
Profit for the year 32 — (4) (37) 261 — (111) 141
Earnings per share (pence)
Basic 0.02 — — (0.03) 0.18 — (0.08) 0.10
Diluted 0.02 — — (0.03) 0.17 — (0.07) 0.09 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
48
29. EXPLANATION OF TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (continued)
Reconciliation of the consolidated balance sheet as at 31 August 2007 from UK GAAP to IFRS
31 August 2007
IAS 17 IAS 19 IAS 38 IAS 39 IFRS 3 As restated 
Reformatted Financialin accordance
UK GAAP as asset with IFRS
previously EmployeeIntangibleavailableBusiness
reported Leases benefits assets for sale Combinations
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Assets
Non current assets
Goodwill 3,441 — — 261 — (611) 3,091
Intangible assets ————— 500 500
Property, plant and equipment 715 ————— 715
Available-for-sale financial assets 469 — — — 105 — 574
4,625 — — 261 105 (111) 4,880
Current assets
Trade and other receivables 5,923 ————— 5,923
Short-term investments 500 ————— 500
Cash and cash equivalents 1,934 ————— 1,934
8,357 ————— 8,357
Liabilities
Current liabilities 
Trade and other payables (5,206) (11) (146) — — — (5,363)
Current income tax liabilities (31) ————— (31)
Bank overdrafts (217) ————— (217)
Bank and other borrowings (1,031) ————— (1,031)
Convertible loan notes (450) ————— (450)
Deferred cash consideration ———————
(6,935) (11) (146) — — — (7,092)
Net current assets 1,422 (11) (146) — — — 1,265
Non current liabilities
Bank loans and other borrowings (116) ————— (116)
Convertible loan notes (136) ————— (136)
Deferred cash consideration (114) ————— (114)
(366) ————— (366)
Net assets 5,681 (11) (146) 261 105 (111) 5,779
Equity
Share capital 1,779 ————— 1,779
Share premium account 6,082 ————— 6,082
Merger reserve (454) ————— (454)
Retained earnings (1,726) (11) (146) 261 105 (111) (1,628)
Total equity 5,681 (11) (146) 261 105 (111) 5,779
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
49
29. EXPLANATION OF TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (continued)
Reconciliation of the consolidated balance sheet as at 1 September 2006 from UK GAAP to IFRS
1 September 
2006
Reformatted IAS 17 IAS 19 IAS 38 IAS 39 IFRS 3
UK GAAP Financial asset As restated in
as previously Employee Intangible available Business accordance
reported Leases benefits assets for sale Combinations with IFRS
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Assets
Non current assets
Goodwill 1,216 ————— 1,216
Intangible assets ———————
Property, plant and equipment 552 ————— 552
Available-for-sale financial assets 469 ————— 469
2,237 ————— 2,237
Current assets
Trade and other receivables 3,657 ————— 3,657
Short-term investments 524 ————— 524
Cash and cash equivalents 1,571 ————— 1,571
5,752 ————— 5,752
Liabilities
Current liabilities
Trade and other payables (3,025) (7) (114) — — — (3,146)
Current income tax liabilities (77) ————— (77)
Bank and other borrowings (82) ————— (82)
Convertible loan notes (690) ————— (690)
Deferred cash consideration ———————
(3,874) (7) (114) — — — (3,995)
Net current assets 1,878 (7) (114) — — — 1,757
Non current liabilities
Bank loans and other borrowings (145) ————— (145)
Convertible loan notes (400) ————— (400)
(545) ————— (545)
Net assets 3,570 (7) (114) — — — 3,449
Equity
Share capital 1,285 ————— 1,285
Share premium account 4,547 ————— 4,547
Merger reserve (454) ————— (454)
Retained earnings (1,808) (7) (114) — — — (1,929)
Total equity 3,570 (7) (114) — — — 3,449 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
50
29. EXPLANATION OF TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (continued)
Reconciliation of the Company balance sheet as at 31 August 2008 from UK GAAP to IFRS
31 August 2008
IAS 19 As restated in
Reformatted Employee accordance
UK GAAP benefits with IFRS
£’000 £’000 £’000
Assets
Non current assets
Investment in subsidiaries 5,531 — 5,531
5,531 — 5,531
Current assets
Trade and other receivables 4,052 — 4,052
Cash and cash equivalents 500 — 500
4,552 — 4,552
Liabilities
Current liabilities
Trade and other payables (293) (15) (308)
Bank and other borrowings (250) — (250)
Convertible loan notes (148) — (148)
Deferred cash consideration (372) — (372)
Current tax liabilities ———
(1,063) (15) (1,078)
Net current assets 3,489 (15) 3,474
Non current liabilities
Bank loans and other borrowings (500) — (500)
Convertible loan notes (295) — (295)
Deferred cash consideration ———
(795) — (795)
Net assets 8,225 (15) 8,210
Equity
Share capital 1,779 — 1,779
Share premium account 6,082 — 6,082
Profit and loss account 364 (15) 349
Total equity 8,225 (15) 8,210
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
51
29. EXPLANATION OF TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (continued)
Reconciliation of the Company balance sheet as at 31 August 2007 from UK GAAP to IFRS
31 August 2007
Reformatted 
UK GAAP as IAS 19 As restated in
previously Employee accordance
reported benefits with IFRS
£’000 £’000 £’000
Assets
Non current assets
Investment in subsidiaries 4,932 — 4,932
4,932 — 4,932
Current assets
Trade and other receivables 4,881 — 4,881
Cash and cash equivalents 641 — 641
5,522 — 5,522
Liabilities
Current liabilities
Trade and other payables (348) (14) (362)
Bank and other borrowings (937) — (937)
Convertible loan notes (450) — (450)
Deferred cash consideration ———
Current tax liabilities (1) — (1)
(1,736) (14) (1,750)
Net current assets 3,786 (14) 3,772
Non current liabilities
Bank loans and other borrowings — — —
Convertible loan notes (136) — (136)
Deferred cash consideration (114) — (114)
(250) — (250)
Net assets 8,468 (14) 8,454
Equity
Share capital 1,779 — 1,779
Share premium account 6,082 — 6,082
Profit and loss account 607 (14) 593
Total equity 8,468 (14) 8,454 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
52
29. EXPLANATION OF TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (continued)
Reconciliation of the Company balance sheet as at 1 September 2006 from UK GAAP to IFRS
1 September 2006
Reformatted 
UK GAAP as IAS 19 As restated in
previously Employee accordance
reported benefits with IFRS
£’000 £’000 £’000
Assets
Non current assets
Investment in subsidiaries 2,119 — 2,119
2,119 — 2,119
Current assets
Trade and other receivables 4,620 — 4,620
Cash and cash equivalents 526 — 526
5,146 — 5,146
Liabilities
Current liabilities
Trade and other payables (227) (10) (237)
Bank and other borrowings ———
Convertible loan notes (690) — (690)
Deferred cash consideration ———
Current tax liabilities ———
(917) (10) (927)
Net current assets 4,229 (10) 4,239
Non current liabilities
Bank loans and other borrowings — — —
Convertible loan notes (400) — (400)
Deferred cash consideration ———
(400) — (400)
Net assets 5,948 (10) 5,938
Equity
Share capital 1,285 — 1,285
Share premium account 4,547 — 4,547
Profit and loss account 116 (10) 106
Total equity 5,948 (10) 5,938
>NOTES TO THE FINANCIAL STATEMENTS (continued)
For the year ended 31 August 2008 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
53
Notice is hereby given that the Annual General Meeting of the Company will be held at the offices of Seymour Pierce Limited at 20 Old Bailey,
London, EC4M 7EN at 12.00pm on 22 December 2008 for the following purposes:
Ordinary business
1. To receive the Company’s annual financial statements for the year ended 31 August 2008, the Directors’ report and the Auditors’ report on
those financial statements.
2. To re-appoint PricewaterhouseCoopers LLP as auditors and to authorise the Directors to fix their remuneration.
3. To re-elect as a Director Dr M G Carter who is retiring by rotation.
4. To re-elect as a Director Dr F M Armstrong who was appointed a Director of the Company during the period.
5. To re-elect as a Director Mr G D Cook who was appointed a Director of the Company during the period.
6. To re-elect as a Director Mr F C Condella who was appointed a Director of the Company during the period.
7. To re-elect as a Director Mr K L Lacey who was appointed a Director of the Company during the period.
8. To consider, and if thought fit, pass the following resolution which will be proposed as an ordinary resolution:
“THAT, in substitution for all existing authorities, the Directors be generally and unconditionally authorised pursuant to section 80 of the
Companies Act 1985 (the “Act”) to exercise all the powers of the Company to allot relevant securities (within the meaning of that section)
up to an aggregate nominal amount of £593,136 for a period expiring (unless previously renewed, varied or revoked by the Company in
general meeting) 15 months after the date of the passing of this resolution or at the conclusion of the next Annual General Meeting of the
Company following the passing of this resolution, whichever first occurs save that the Company may before the expiry of the authority
granted by this resolution make an offer or agreement which would or might require relevant securities to be allotted after expiry of this
authority and the Directors may allot relevant securities in pursuance of that offer or agreement.”
Special business
9. To consider, and if thought fit, the following resolution which will be proposed as a special resolution:
“THAT, in substitution for all existing authorities and subject to the passing of resolution 6, the Directors be generally empowered pursuant
to section 95 of the Act to allot equity securities (within the meaning of section 94(2) of the Act) pursuant to the authority conferred by
resolution 6 as if section 89(1) of the Act did not apply to the allotment. This power:
(A) expires 15 months after the date of the passing of this resolution or at the conclusion of the next Annual General Meeting of the
Company following the passing of this resolution, whichever first occurs, but the Company may make an offer or agreement which
would or might require equity securities to be allotted after expiry of this authority and the Directors may allot equity securities in
pursuance of that offer or agreement; and
(B) is limited to:
i. allotments of equity securities where such securities have been offered (whether by way of a rights issue, open offer or
otherwise) to holders of ordinary shares in the capital of the Company made in proportion (as nearly as may be) to their
existing holdings of ordinary shares but subject to the Directors having a right to make such exclusions or other
arrangements
(a) to deal with equity securities representing fractional entitlements; and
(b) to deal with legal or practical problems under the laws of any territory, or the requirements of a regulatory body;
and
ii. allotments of equity securities for cash otherwise than pursuant to paragraph (i) above up to an aggregate nominal amount
of £444,852.”
By order of the Board:
Lesley Wotherspoon 
Company Secretary
Registered office: Hemel One, Boundary Way, Hemel Hempstead, Hertfordshire HP2 7YU
26 November 2008 
>NOTICE OF ANNUAL GENERAL MEETING Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
54
Notes:
1. This notice is the formal notification to shareholders of the Company’s Annual General Meeting, its date, time and place and the matters to
be considered. If you are in doubt as to what action to take, you should consult an independent adviser.
2. Pursuant to regulation 41 of the Uncertified Securities Regulations 2001, only those shareholders registered in the register of members of
the Company as at 2.00pm on 19 December 2008 as holders of ordinary shares of 1 pence each in the capital of the Company shall be
entitled to attend or vote at the meeting in respect of the number of shares registered in their name at that time. Changes to entries in the
register of members after 2.00pm on 19 December 2008 shall be disregarded in determining the rights of any person to attend or vote at
the meeting.
3. A member of the Company entitled to attend and vote is entitled to appoint a proxy to attend and, on a poll, vote instead of him or her.
A proxy need not be a member of the Company. Proxy forms must be in the hands of the registrars at least 48 hours before the time fixed
for the meeting.
4. Any change of address should be notified promptly to the registrars.
5. The following documents will be available at the registered office of the Company during usual business hours on each weekday (Saturdays
and public holidays excepted), from the date of this notice until the date of the meeting and for at least 15 minutes prior to the meeting
and during the meeting:
(i) the register of Directors’ interests; and
(ii) copies of Directors’ service contracts with the Company and with any of its subsidiary undertakings.
Explanations of resolutions
Resolution 1 – Financial statements
The Directors of the Company are obliged to present to shareholders the report of the Directors and the audited financial statements for the
Company for the year ended 31 August 2008. That report and those financial statements, and the report of the Company’s auditors on those
financial statements, are set out on pages 9 to 49 of this document.
Resolution 2 – Re-appointment of auditors
The Company is required to appoint auditors at each general meeting at which financial statements are laid, to hold office until the next general
meeting. The present auditors, PricewaterhouseCoopers LLP are willing to continue in office for a further year and this resolution proposes their
re-appointment and, in accordance with standard practice, authorises the Directors to determine the level of the auditors’ remuneration.
Resolution 3 – Re-election of a Director
After the first Annual General Meeting at which all of the Directors retired from office, at every subsequent general meeting one third of the
Directors for the time being (other than those appointed since the latest Annual General Meeting) are required to retire. If the number of relevant
Directors is not a multiple of three, the number nearest to but not greater than one third of the Directors should be obliged to retire. Directors
due to retire by rotation are those who have been longest in office since their last re-election and as between persons who become or were last
re-elected on the same day those due to retire shall (unless they otherwise agree among themselves) be determined by lot. A retiring Director is
eligible for re-election. Dr M G Carter who retires by rotation is offering himself for re-election.
Resolutions 4, 5, 6 and 7 – Re-election of Directors
A Director appointed to the Board as an additional Director holds office only until the next Annual General Meeting, when he must be re-appointed
in order to remain in office. Dr F M Armstrong, Mr G D Cook, Mr F C Condella and Mr K L Lacey are retiring in accordance with the Company’s
Articles of Association and, being eligible, are offering themselves for re-election.
Resolution 8 – Authority to allot
This resolution grants the Directors authority to allot relevant securities up to an aggregate nominal amount of £593,136 being an amount equal to
one third of the issued share capital of the Company. It is not the Directors’ current intention to allot relevant securities pursuant to this resolution.
This authority replaces the existing authority to allot relevant securities but does not affect the ability to allot shares under the share option schemes.
This authority expires at the conclusion of the next Annual General Meeting of the Company or 15 months from the date of passing the resolution,
whichever is the earlier.
Resolution 9 – Disapplication of statutory pre-emption rights
This resolution disapplies the statutory pre-emption rights which would otherwise apply on an issue of shares for cash pursuant to a rights issue
where the securities attributable to the interests of all shareholders are proportionate (as nearly as may be) to the number of shares held and
generally up to £444,852, being a sum equal to 25% of the issued share capital of the Company. This replaces the existing authority to disapply
and expires at the conclusion of the next Annual General Meeting of the Company or 15 months from the date of passing the resolution, whichever
is the earlier. 
>NOTICE OF ANNUAL GENERAL MEETING (continued) Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
55
I/We
of
a member/members of the above named Company, hereby appoint the Chairman of the Meeting 
or
as my/our proxy to vote for me/us on my/our behalf at the General Meeting of the Company 
to be held at the offices of Seymour Pierce Limited at 20 Old Bailey, London, EC4M 7EN at 12.00pm on 22 December 2008 and at any adjournment
thereof.
If you wish to instruct your proxy as to how to vote on your behalf please indicate by an “X” in the appropriate box below.
Ordinary resolutions For Against
1. To receive and consider the Directors’ Report and Financial Statements for the year ended 
31 August 2008 and the Auditors’ Report thereon.
2. To re-appoint PricewaterhouseCoopers LLP as auditors and to authorise the 
Directors to fix their remuneration.
3. To re-appoint Dr M G Carter as a Director of the Company.
4. To re-appoint Dr F M Armstrong as a Director of the Company
5. To re-appoint Mr G D Cook as a Director of the Company.
6. To re-appoint Mr F C Condella as a Director of the Company.
7. To re-appoint Mr K L Lacey as a Director of the Company.
8. To pass an ordinary resolution to empower the Directors to allot shares in accordance with 
section 80 of the Companies Act 1985 up to a nominal value of £593,136
9. To pass a special resolution to disapply statutory pre-emption-rights.
Signed Date
Notes
1. You may appoint a proxy of your own choice by deleting the words “Chairman of the meeting” and inserting the name and address of
your proxy in the space provided.
2. Unless otherwise instructed, a proxy may vote as he sees fit, or abstain from voting on any business (including amendments to resolutions)
which may properly come before the meeting.
3. If the appointor is a corporation, this form must be under its common seal or under the hand of some officer or attorney duly authorised in
that behalf.
4. In the case of joint holders, the signature of any one holder will be sufficient, but the names of all the joint holders should be stated.
5. To be valid, this form must be completed signed and lodged with the Company’s Registrars, Capita Registrars, Proxy Department, PO BOX
25, Beckenham, Kent BR3 4BR not less than 48 hours before the time fixed for holding the meeting or adjourned meeting.
Registered No. 3930927
FORM OF PROXY Second Fold
First Fold First Fold
Third Fold (Tuck-in)
BUSINESS REPLY SERVICE
NUMBER MB122
Capita Registrars
Proxy Department
PO Box 25
Beckenham
Kent BR3 4BR
1 Fulcrum ANNUAL REPORT AND ACCOUNTS 2008
DIRECTORS AND ADVISERS
DIRECTORS
Dr F M Armstrong
Mr C G G Smith
Dr J A Devlin
Sir C George
Mr G Cook
Dr J A Bell 
Dr M G Carter
Mr F Condella
Mr K Lacey 
SECRETARY AND REGISTERED OFFICE
Mrs L Wotherspoon
Fulcrum Pharma PLC
Hemel One
Boundary Way
Hemel Hempstead
Hertfordshire
HP2 7YW
REGISTERED NUMBER
3930927
REGISTERED AUDITORS
PricewaterhouseCoopers LLP
10 Bricket Road
St Albans
Hertfordshire
AL1 3JX
NOMINATED ADVISER AND NOMINATED BROKER
Seymour Pierce Limited
20 Old Bailey
London
EC4M 7EN
REGISTRARS
Capita Registrars Limited
The Registry
34 Beckenham Road
Beckenham
Kent
BR4 4TU Fulcrum Pharma PLC.
Hemel One
Boundary Way
Hemel Hempstead
Hertfordshire, HP2 7YU, UK
t. +44 (0)1442 283 600
f. +44 (0)1442 283 613
e. info@fulcrumpharma.com
w. www.fulcrumpharma.com