www.braveheart-ventures.co.uk
The Cherrybank Centre
Cherrybank Gardens
Perth
PH2 0PF
United Kingdom
mail@braveheart-ventures.co.uk
T: +44 (0)1738 587555
F: +44 (0)1738 587666
Growth
Support
Service
Partnership
Annual Report and Accounts 2008
Braveheart Investment Group Annual Report and Accounts 2008 Contents
Braveheart Highlights 1
Braveheart at a Glance 2
Chairman’s Statement 4
Chief Executive Officer’s Report 7
Chief Investment Officer’s Report 10
Board of Directors 14
Directors’ Report 16
Corporate Governance Statement 18
Directors’ Remuneration Report 21
Statement of Directors’ Responsibilities 23
Independent Auditor’s Report 24
Group Income Statement 25
Group Balance Sheet 26
Company Balance Sheet 27
Group Cash Flow Statement 28
Company Cash Flow Statement 29
Statement of Changes in Equity  30
Notes to the Financial Statements 31
Notice of Annual General Meeting 46
Company Information IBC
  providing equity capital to enable companies to achieve 
their ambitions
  offering experienced business people to assist with 
corporate development
  building diversified portfolios for investors and showing 
market leading returns
  working with the academic and business communities to 
deliver economic benefit
Braveheart was founded by a small group of business 
angels who wished to use their skills and experience to 
identify and fund early stage investment opportunities. 
Eleven years later Braveheart has developed into a 
recognised and successful private equity business which 
specialises in the commercialisation of intellectual property. 
A key strength of the business continues to be the assistance 
that its entrepreneurial investors give to the selection of 
investments and the management of the portfolio.
Our business is based on the following principles:
BRAve HeART Inve STmen T GRo UP Pl C
Growth
Support
Service
Partnership
Further information is available on our website: www.braveheart-ventures.co.uk
Garry S Watson
Chairman
Directors Garry Watson OBE CA, Chairman
 (n) (r)
  Geoffrey Thomson, Chief Executive Officer
  Carolyn Smith ACIS, Chief Investment Officer 
  Edward Cunningham CBE FRSE, Senior Non-executive Director
 (a) (n) (r)
  Donald Turner CA, Non-executive Director
 (a)
  Shonaig Macpherson CBE FRSE, Non-executive Director
 (r)
  Kenneth Brown BA CA, Non-executive Director
 (a) (r) 
(appointed 12 September 2007)
  Jeremy Delmar-Morgan MA MSI, Non-executive Director (appointed 3 June 2008)
  (a) Member of Audit and Risk Management Committee
  (n) Member of Nominations Committee
  (r) Member of Remuneration Committee
Secretary Carolyn Smith ACIS
Company registration number SC247376
Registered office The Cherrybank Centre
  Cherrybank Gardens
  Perth
  PH2 0PF
  Telephone +44 (0) 1738 587555 
Website www.braveheart-ventures.co.uk
Advisers Registrar Principal Bankers 
  Capita Registrars Bank of Scotland
  Northern House 110 St Vincent Street 
  Woodsome Park Glasgow
  Fenay Bridge G2 5ER
  Huddersfield
  HD8 0LA
 
  Solicitors  Solicitors
  Semple Fraser LLP Maclay Murray & Spens LLP
  80 George Street Quartermile One 
  Edinburgh 15 Lauriston Place
  EH2 3BU Edinburgh 
    EH3 6EP
  Auditor Nominated Adviser and Broker   
  Ernst & Young LLP  Seymour Pierce Limited
  Ten George Street  20 Old Bailey
  Edinburgh  London 
  EH2 2DZ  EC4M 7EN
  Financial PR
  Tavistock Communications Ltd
  131 Finsbury Pavement
  London
  EC2A 1NT
ComPAny InFoR mATIon Our management team
Braveheart highlights
Twelve equity investments totalling £3m made during the year  •	
by the Group and on behalf of clients
Portfolio increased in value by £1.7m during the year •	
Client exit portfolio at 31 March 2008 showed an internal rate  •	
of return of 33.4%, with the overall client portfolio (being both 
exited and unexited investments) showing a return of 26.7%
Revenue increased 22% to £659k •	
Profit before tax of £106k (2007: loss of £164k) •	
Announcement of £25m University of Edinburgh Fund •	
Acquisition of W L Ventures Ltd •	
Listing of The Capital Pub Company plc shares on AIM resulting  •	
in initial market capitalisation of £32m
Post year end
Fifteen year partnership with the University of Aberdeen •	
announced 
New investment made in Im-Sense Ltd, a spin-out from the •	
University of East Anglia 
Follow-on investments in Cascade Technologies Ltd and Spiral •	
Gateway Ltd
Group portfolio now comprises 33 companies •	
£ 1. 7 m
INCREASE IN PORTFOLIO VALUE
33%
EXIT IRR OF CLIENT PORTFOLIO
Braveheart Investment Group plc Annual Report & Accounts 2008 1 Our headquarters
Braveheart at a glance
OUR UNIqUE PROPOSITION 
Our Business Model
The Group is focused on making market-leading returns from  
the management of, and investment in, intellectual property  
– principally via the provision of equity funding for university 
spin-outs.
Our engagement
The investment of capital is only the start of our relationship with 
portfolio companies. We appoint chairmen and non-executive 
directors and we engage with management teams to assist in 
strategic development and to optimise exit values. We regularly 
review progress to identify opportunities and threats.
Our University r elationships
We have strong links with a number of leading universities and 
innovation centres across the UK. This gives us access to a wide 
variety of emerging commercial opportunities at early stages.
We believe our business model sets  
us apart from our peers: 
•
  We have two income streams
•
  We have a client base of experienced 
and entrepreneurial high net worth 
investors who work with us in 
investment selection, monitoring 
and maximising the exit potential
•
  We have a pipeline of investment 
prospects from leading universities
2 OUR BUSINESS
Private c lient
The Group provides heavily screened investment opportunities  
to both discretionary and advisory clients. Clients in turn may 
provide the Group with secondary due diligence as part of the 
investment appraisal process and also form a pool of executive  
and non-executive directors to assist in the management and 
governance of portfolio companies.
Fund Management
The Group invests capital from its own balance sheet in order  
to make gains through income and capital appreciation in  
the equity of portfolio companies. The Group’s returns are  
generated from the realisation of portfolio investments,  
whether this be through trade sale, secondary purchase, 
management acquisition or IPO.
Funds under management
SMART Fund
Seed fund •	
Fully invested (10 investments) •	
 Initially used to deliver SMART Equity Scheme •	
Alpha EIS Fund
 £2.5m virtual fund (will make 10 to 15 seed investments) •	
 Used to deliver SMART Equity Scheme and Proof of  •	
Concept Scheme
 Participants include Braveheart Investment Group, private •	
clients, Bank of Scotland Corporate, Scottish Enterprise
Performance bonus in place •	
Eight investments completed •	
Scottish Co-investment Fund
 One of the largest partners in this public sector fund •	
£6m under management •	
 Can use to match private investment •	
Portfolio and discretionary clients
£13.5m under management •	
Our business consists of two components:
OUR VISION
Our vision is to grow Braveheart by 
way of organic growth and M&A. 
Organic growth will come about via 
geographical expansion: we intend  
to establish a presence in or around 
London before the end of our  
financial year. 
We are looking at M&A opportunities 
where we can see economies of scale 
and synergistic business combinations. 
The focus is on the areas of private 
clients, fund management and 
consulting. Our purchase of W L 
Ventures Ltd last year and our recent 
interest in ANGLE plc are examples  
of situations where we believe we  
can add value. 
Braveheart Investment Group plc Annual Report & Accounts 2008 3 I have pleasure in presenting 
the results of Braveheart 
Investment Group for the 
year ended 31 March 2008, 
the first complete year since 
the admission of the 
Company’s shares to trading 
on AIM in March 2007 .
Results
I am pleased to report that the profit for  
the year before taxation was £106k 
compared to a pre-tax loss of £164k last 
year. This equates to earnings per share  
of 0.74p compared to a loss per share of  
1.6p last year.
Income from investment management 
operations, excluding bank interest, 
increased by 22% to £659k while bank 
interest amounted to £331k (2007: £49k). 
Gains and losses arising from fair value 
adjustments to balance sheet investments 
at the year end resulted in a net profit of 
£458k that has been recognised in the 
Group Income Statement.
The Group’s investment portfolio contains 
investments with preferential subscription 
terms. On exit, these terms usually entitle 
the Group to receive a multiple of its 
subscription monies before the remaining 
proceeds of sale are divided amongst all 
shareholders on a pro-rata basis. 
These preferential exit returns typically 
equate to a premium of 50% of the monies 
invested. In the year under review £541k 
was invested in eight companies through 
contracts employing such terms. Potential 
future value arising from these terms has 
not yet been recognised in the financial 
statements because their realisation is not 
sufficiently certain at this time. The directors 
believe that these arrangements represent 
an important source of potential future 
value that they expect will be realised over 
time. These arrangements are separate 
from any returns achieved by virtue of 
changes in value of the underlying asset. 
The Group ended the year with a strong 
balance sheet, having cash balances in 
excess of £4.8m and no debt.
Delivering on Our Plans
Last year I spoke about our plans for 
growing our business with the aid of the 
additional capital raised through our IPO.  
I am pleased to report that we have made 
good progress during the year under 
review in implementing these plans. 
In April 2007 we completed the acquisition 
of W L Ventures Ltd, now renamed 
Caledonia Portfolio Realisations Ltd,  
a portfolio of some 10 technology 
investments. Following a review of these 
underlying businesses, and an assessment 
of how we could best realise shareholder 
value, we are confident that this portfolio 
will show us a good return on our 
investment.
There are now 33 companies in the Group 
portfolio. During the year, the Group made 
six new investments and six follow-on 
investments in existing portfolio companies. 
c hair Man’s state Ment
4 The first closing of the Strathclyde 
Innovation Fund is expected to complete 
shortly. A draft prospectus for our fund for 
the University of Edinburgh is in preparation 
and we anticipate that that fund will have  
a first closing around the turn of the 
calendar year.
We have recently announced that we  
have entered into a partnership agreement 
with the University of Aberdeen. This 
agreement will enable Braveheart and the 
university to work together to stimulate 
the commercialisation of intellectual 
property emanating from the university. 
In return, Braveheart will have first refusal 
on commercial investment opportunities 
which flow from within the university.  
In the longer term it is anticipated that a 
dedicated fund will be established to 
finance these opportunities. The University 
of Aberdeen has strong commercialisation 
expertise in the areas of life science, 
medicine, engineering and geosciences 
and we are excited about developing this 
partnership’s potential.
Our business model is designed to  
deliver a surplus from our investment 
management operations, although there 
will be periods during which income lags 
behind expenditure as we invest in our 
management infrastructure. This has been 
the case in the year under review and will 
continue to be the case until income from 
the management of our dedicated 
university funds builds up.
Embedded Value
One of the most satisfactory developments 
of the year under review has been the 
value added to existing holdings within  
the portfolio. Strong advances were made 
by a number of companies, warranting 
further capital, and the opportunity was 
taken to increase the Group’s investment 
at prices representing good value.
Throughout our Annual Report there will 
be found descriptions of such companies, 
demonstrating the breadth of the services 
that they provide or are seeking to provide, 
and all linked by their origins in intellectual 
property developed within academia or 
industrial research centres. 
This is where our strategy starts to reap 
rewards; having funded start-up companies 
with a mixture of private and public sector 
money, our negotiated pre-emption rights 
enable us to increase the level of private 
client and balance sheet investment as they 
hit their pre-determined milestones and 
demonstrate their capacity to succeed in 
their respective marketplaces. 
This store of value is nurtured by a 
combination of advice and experience 
from our entrepreneurial client base,  
and capital where warranted, to maximise 
exit results.
Plans for Growth
Braveheart needs to grow to realise its full 
potential. Your Board has always been alert 
to this need and saw the move to AIM as the 
first step in that process. Intermittent turmoil 
in the financial market place over the past 
two years has hastened this objective as 
both institutional investors and private 
client brokers have raised their sights on 
the level of capitalisation required to 
attract investment.
In April we announced that we had 
approached the board of ANGLE plc,  
a company whose shares are traded  
on AIM, with a view to making a 
recommended share offer. ANGLE has  
a portfolio of investments in technology 
companies together with a management 
services division that has contracts in this 
country and overseas. Unfortunately it has 
not been possible, to date, to reach 
agreement with the board of ANGLE, but 
your board continues to explore means by 
which the shareholders of both companies 
might benefit from the linking of their 
activities. Other expansion opportunities 
are continuously under review.
Braveheart has established a well 
recognised and reputable business in 
Scotland and has a growing client base  
in the South. We intend to expand that 
southern client base and, with it, the group 
of successful entrepreneurs who are willing 
to work with the management of companies 
in which we invest. 
The success of our university relationships 
in Scotland and the features of the 
dedicated funds that are being established 
with them have attracted interest from 
universities in England. We have opened 
discussions with a number of institutions 
and, in the fullness of time, we look 
forward to establishing relationships that 
are tailored to the research outputs and 
requirements of individual establishments. 
“ The Group ended the 
year with a strong 
balance sheet, having 
cash balances in excess  
of £4.8m and no debt.”
Braveheart Investment Group plc Annual Report & Accounts 2008 5 The Board believes that these initiatives, 
together with the establishment of an 
operational base in or around London,  
are key to Braveheart’s growth in the near 
term and the Group is supporting them 
with the necessary financial resources.
Board, Management and Staff 
I am delighted that Jeremy Delmar-Morgan 
has recently accepted an invitation to join 
the Board. Jeremy has had a distinguished 
City career, having been CEO and chairman 
of Teather & Greenwood and subsequently, 
from 2006, chairman of brokers Hichens, 
Harrison & Co. I am very pleased to welcome 
Jeremy and I am confident that he will 
make a valuable contribution to our  
Board debate.
Donald Turner and Shonaig Macpherson 
will be retiring from the Board at the AGM 
in September. I know that shareholders  
and colleagues will wish to join me in 
thanking them for their valuable 
contributions and support as Braveheart 
has emerged from a private ‘Angel’ 
syndicate into an AIM-listed company.  
We are indebted to them for the expertise 
and enthusiasm that they have brought  
to Board discussion.
The Board has now established a 
Nominations Committee. The Committee 
will review the composition of the Board, 
provide for the right balance of experience 
and skills, and ensure that there is continuity 
with regard to anticipated retirements.
We are fortunate in having experienced 
and dedicated members of staff who have 
worked as a well-knit team to deliver these 
results. I want to thank all of them for their 
individual contributions. Our management 
team, at a senior level, has been 
strengthened and further appointments 
can be expected in the near future.
Shareholders will be pleased to hear that  
at the Ernst & Young Entrepreneur of the 
Year (Scotland) awards ceremony in June, 
Geoffrey Thomson, our CEO, was given a 
special award by an independent judging 
panel, for the support given to Scotland’s 
emerging technology companies over  
the last decade.
Braveheart Clients
Many of Braveheart’s clients are successful 
entrepreneurs whose contributions to 
portfolio companies, as chairmen and 
non-executive directors, are all-important. 
Their skills and experience add value in the 
early stages as a company emerges from 
academia, through the development of a 
demonstrable product, and into periods of 
revenue growth when the structure of 
management teams and the selection  
of executives can be critical. I am grateful  
to them for their hard work which can 
often represent the difference between  
failure and success. The Board attaches 
particular importance to supporting  
these appointments and will continue  
to provide workshops, mentoring and 
networking opportunities.
Dividends
It remains the Board’s intention that,  
in future, and subject to the availability of 
distributable reserves, regular dividends 
should be paid out of investment 
management profits and special dividends 
should be paid where there are meaningful 
capital profits realised from the disposal  
of portfolio investments.
Prospects 
The current year has started with 
questionable economic prospects and  
with the financial markets unsympathetic 
towards small cap companies. However, 
these are the conditions in which a well 
regarded business such as Braveheart can 
secure good investment value. 
With our cash resources, and excellent 
market relationships, we are well placed  
to nurture and grow our existing portfolio 
of companies as we steer them towards an 
exit. Braveheart has always been open to 
exiting investments both through trade  
sale and IPO. Despite the current quoted 
market conditions we have no reason to 
believe that trade buyers will not be 
available to purchase portfolio assets at  
the opportune moment. 
These expectations, and the implementation 
of our growth strategy, should ensure that 
Braveheart continues to build value for 
shareholders, as has been the case since 
our business was founded 11 years ago. 
Annual General Meeting
The notice regarding the business to be 
dealt with at the Company’s Annual 
General Meeting, to be held on 10 
September 2008, is set out on page 46.
Your directors are unanimously in favour  
of resolutions nos. 1 – 7 (inclusive), which 
they consider to be in the best interests of 
the shareholders as a whole. Accordingly, 
your directors recommend shareholders to 
vote in favour of those resolutions, as they 
intend to do in respect of their own 
beneficial shareholdings.
I look forward to welcoming those 
shareholders who are able to attend.
Garry S Watson
Chairman
c hair Man’s state Ment
CONTINUED
“ There are now  
33 companies in the 
Group portfolio.” 
6 chie F eXec Utive OFF icer ’s re POrt
This is the first time  
that I am reporting to 
shareholders on a full year  
as a listed company.  
Last year I said we had not 
been idle since we listed  
our shares on AIM in March 
2007 and, once again,  
I am delighted to be able  
to report that we have had  
a busy year and that our 
prospects for growth  
are good. 
Operating and Financial Review
Portfolio
During the year we invested in six new 
companies and provided further equity 
funding to six of our existing portfolio 
companies. One of our portfolio companies 
was listed on AIM and two companies were 
wound up. Unfortunately, one company 
that was listed on AIM failed to raise 
second round funding on the market  
and was placed in administration. 
We are pleased with the statistics from our 
portfolios. More details are given in our Chief 
Investment Officer’s report on page 10.
a cquisition 
Early in the year we acquired W L Ventures 
Ltd which we renamed Caledonia Portfolio 
Realisations Ltd (CPR) and which is now  
a wholly owned subsidiary of Braveheart 
Investment Group plc. CPR came with a 
portfolio of 10 companies and with tax 
losses amounting to around £1m. The 
consideration payable for the business  
was based on an initial sum together  
with a deferred element based on the  
exit proceeds of the portfolio. 
Since acquisition, the value of the portfolio 
has increased substantially. This increase in 
value has been driven mainly by investment 
from third parties. In addition, the Group 
has invested in one business and achieved 
an exit by way of a trade sale in another.
human r esources
During the year we continued to expand 
our management team, principally within 
our portfolio monitoring unit. In most  
of our investments we will exercise our 
right to place non-executive directors  
on the boards of our portfolio companies. 
These non-executives are drawn, primarily,  
from our client bank of experienced 
entrepreneurs and are supported by our 
portfolio management team. The Group 
holds regular seminars on non-executive 
director roles and responsibilities. 
r egulatory 
November 2007 saw the introduction  
of the Market in Financial Instruments 
Directive (MiFID). This legislation was 
greeted with trepidation in some quarters 
and received many column inches in the 
press. The principal effect on us relates to 
the classification of investors; under the 
new definitions the old ‘expert’ has 
become a ‘professional’ and there are now 
quantitive tests that must be applied before 
an investor can be classified as a professional 
client. These tests may be appropriate in the  
wider market but for our sector they are 
unnecessarily restrictive and we are 
supporting a review of the new requirements. 
Given that the legislation is Europe-wide, 
any changes are likely to take time to 
achieve. We are authorised to take on all 
categories of client and the effect of these 
measures is administrative only and not 
detrimental to our business.
Braveheart Investment Group plc Annual Report & Accounts 2008 7 taxation
The Government has now abolished 
Business Asset Taper Relief in favour of 
entrepreneurs’ relief and a Capital Gains 
Tax regime of 18%. An important part  
of our business involves building tax efficient 
portfolios for clients, typically utilising the 
Enterprise Investment Scheme (EIS). 
Changes to the tax regime linked to an 
increased annual personal threshold of 
£500,000 mean that EIS portfolios are now 
becoming an increasingly useful asset class. 
This stands us in good stead for building 
this part of our business and I comment 
further on this below. 
Financial Review
general
The consolidated results show a pre-tax 
profit of £106k (2007: loss of £164k). 
Revenue was up 22% to £659k  
(2007: £539k). Earnings per share  
were 0.74p (2007: loss of 1.6p).
Employee costs rose to £559k (2007: £472k) 
as we invested in new staff and other 
operating costs rose to £474k (2007: £274k) 
reflecting, amongst other things, the first 
year’s full cost of being a listed company. 
 
As at the end of the year the Group had net 
assets of £7.3m (2007: £7.2m) and cash 
balances of £4.8m (2007: £6.5m). 
During the year £1.2m (2007: £725k) was 
invested by the Group in its portfolio. 
investment Management income
In common with most other companies in 
the financial services business the general 
slowdown of global markets has impacted 
on our business. This has affected us by 
way of a reduced appetite for investment 
from our private clients, particularly since 
last autumn. I discuss, below, what this 
means to us in the longer term. 
group investments
At the start of the year our investment 
portfolio had a book value of £896k. 
During the year we divested three 
investments with an aggregate loss of 
£71k, made six new investments, and 
made funds available to existing companies 
at an aggregate cost of £1.2m. At the year 
end our investment portfolio had a value  
of £2.6m, reflecting a fair value increase  
of £458k in the period. A liability of £310k  
has been provided for as part of the 
deferred consideration for the W L 
Ventures acquisition.
Portfolio valuation Methodology
This year our portfolio has grown 
substantially and its underlying value has 
become increasingly significant. In view of 
this we have recently concluded a review of 
our valuation methodology and effected 
modifications to ensure that it continues to 
comply with the European Venture Capital 
Association guidelines.
I draw your attention to our Chairman’s 
comments regarding the important 
potential store of value within our portfolio 
that arises as a result of the way in which 
we structure our investments. This potential 
store of value is distinct from any change  
in value arising from the progress or 
otherwise of the portfolio investments.
iFrs
Last year I noted that the requirement to 
adopt International Financial Reporting 
Standards (IFRS) meant that we were no 
longer able to account for work-in-progress 
at our year end. This is particularly 
important given that the end of the tax 
year tends to be our busiest time, and it  
is often the case that investments are 
completed in April rather than by the end 
of March. This year completion of two 
investments was deferred into April. Under 
the old accounting regime the work-in-
progress element would have been taken 
into account and would have added to the 
revenue line for the year under review.
share-based Payments
Under IFRS 2, a charge is required in the 
income statement in relation to the fair 
value of share options granted to employees. 
During the year under review 843,754 new 
options were granted resulting in a charge 
to the income statement of £24k. 
subsidiaries
During the year, W L Ventures Ltd was 
renamed Caledonia Portfolio Realisations 
Ltd and became a wholly owned subsidiary 
of Braveheart Investment Group plc.
Two companies were formed to act as 
partners in the establishment of the 
Strathclyde Innovation Fund, these being 
Strathclyde Innovation Fund GP Ltd and 
Caledonia LP Ltd. Both were set up as 
subsidiaries of Braveheart Investment 
Group plc.
chie F eXec Utive OFF icer ’s re POrt
CONTINUED
8 Principal r isks
We use a risk matrix to identify and assess 
the impact of risks to our business, under 
four key headings: management, regulatory, 
strategic and financial. For each risk the 
likelihood and consequence are identified, 
management controls and frequency of 
monitoring are confirmed, and results 
noted. The Corporate Governance 
Statement on pages 18 to 20 provides 
further information about the Group’s  
risk management process. 
Key Performance indicators (KPis)
Last year we set out the KPIs that we use  
to monitor our performance on a quarterly 
basis. They were, and remain, as follows:
Number of investments made •	
Total sums invested •	
Overheads as a percentage of  •	
total income
Returns achieved on portfolio •	
realisations
Funds under management •	
•	 S taf f 	 r e t e n t i o n
 
Forward strategy
As shareholders know, we are committed 
to increasing shareholder value through  
a programme of organic growth and  
M&A activity. 
We will build outwards from our investment 
management base. We have our core 
private client business, primarily based  
in Scotland, and that will be expanded by 
creating a similar client base in London  
and the Home Counties. That expansion 
programme is already underway and cash 
is being committed to fund this expansion. 
Alongside this, we plan to build our fund 
management business with the creation  
of special purpose funds such as those  
for the universities of Strathclyde and 
Edinburgh. We have recently announced  
a partnership with the University of 
Aberdeen and we expect that, in the 
fullness of time, a fund may be established 
for that university. 
Our company is focused on investing in 
early-stage technology. There are other 
businesses that operate in the same space 
and which have the potential to be a  
good fit. We are looking at a number  
of opportunities. 
As we grow, we need to invest in senior 
personnel. We expect to recruit a further 
four people in the next 12 months, including 
appointments at both main board and 
operational board levels. 
Outlook
At the start of the year under review, 
conversation was about all things green. 
Discussion now centres around three 
issues: the first is the price of our natural 
resources, the second is the global credit 
crisis and the third is the economic fallout. 
Market conditions and volatility give us 
cause for concern. However, whilst these 
conditions create difficulties, they also 
provide opportunities for a well capitalised 
business like Braveheart. 
The challenges going forward will be about 
raising capital and forming partnerships to 
strengthen our position. The opportunities 
will be about using our cash wisely in the 
market, both in M&A and in direct portfolio 
investment. We made good investments 
and business decisions at the turn of the 
century when the markets were last in 
turmoil – we intend to do the same again. 
Following through on promises made to 
shareholders is vital; I am happy to report 
that we are carrying out the plans we 
unveiled at the time of our IPO, we are 
spending capital wisely and we are building 
shareholder value. 
Geoffrey C B Thomson
Chief Executive Officer
“ As shareholders know, 
we are committed to 
increasing shareholder 
value through a 
programme of organic 
growth and M&A 
activity.”
Braveheart Investment Group plc Annual Report & Accounts 2008 9 I am delighted to give you 
an update on the investment 
activity in our portfolio and 
on our investment strategy. 
Portfolio Investments
During the year under review we added six 
companies to the portfolio and invested in 
six existing portfolio companies; equity 
funds were provided to Edinburgh Robotics, 
Spiral Gateway, PSI Electronics, NXVision 
(previously Inxstor), MicroEmissive Displays 
Group and Bloxx. Bloxx is the first company 
from the Caledonia Portfolio Realisations 
(CPR) portfolio to receive funds from  
the Group following the acquisition of that 
portfolio in April 2007. New investments 
were made into Traak Systems, Pyreos, 
Atlas Genetics, Elonics, AppShare and 
Conjunct. Brief details of these new 
investments and Bloxx are provided on 
pages 11-13. 
Portfolio Divestments
The Capital Pub Company plc, was listed  
on AIM at a market capitalisation of £32m 
and Pentland Systems Ltd, a CPR portfolio 
company, was acquired on a deferred 
consideration basis with the final return  
yet to be determined. 
Losses are an inevitable feature in the 
venture capital arena. As our CEO has 
advised in his Report, we have had two 
portfolio companies placed into liquidation 
this year: Mixipix and the trading subsidiary 
of Infinite Data Storage Group. In addition, 
the AIM-listed company, Eleksen Group 
was placed into administration.
Looking at our portfolio, current market 
conditions would suggest that near-term 
exit opportunities will come via the trade 
sale route rather than the IPO route. This is 
borne out by our recent observations in the 
market that there are buyers looking to 
make acquisitions. 
Portfolio Returns
At the end of the year under review our 
rebased client exit portfolio (being a 
portfolio where all exited investment  
returns are modelled since inception in 
1997) showed an internal rate of return  
of 33.4%. The overall client portfolio 
(modelling both exited and unexited 
investment returns) is showing a return  
of 26.7%. The rates of return shown by  
our SMART Fund and Alpha Fund are 
1 1.1% and 19.6% respectively. These 
returns compare favourably to the British 
Venture Capital benchmark for ten year 
vintage funds, where the returns are 3.5%, 
-4.8%, and -1.1% respectively for three, 
five and ten year funds.
 
chie F invest Ment OFFicer’ s r ePOrt
10 AppShare was formed in 2007 as a 
spin-out from the University of Strathclyde. 
The company is developing a collaborative 
software solution known as ‘ePlace’. The 
technology allows the sharing of software 
applications between users at different 
locations. The company currently has a 
working ePlace prototype, which will be 
developed over the next 12 months utilising 
funds raised from the recent investment. 
Spiral Gateway is a fabless 
semiconductor chip vendor incorporated  
in 2004 as a spin-out from the University  
of Edinburgh. The company is focused on 
the development of a computer processing 
platform known as Reconfigurable 
Instruction Cell Architecture (RICA).  
RICA is a method for processing 
multimedia, wireless and broadband 
computing tasks and will initially deliver 
new levels of flexibility and performance  
to a key segment of the Image Signal 
Processing (ISP) market. 
Conjunct was formed in 2003 as  
a start up from Heriot-Watt University.   
The company was established to develop 
disruptive technology for short range,  
high speed optical communications.  
Its proprietary technology ‘Fibre-Lyte’  
aims to offer benefits in the packaging  
of optical components in the data 
communications market, the size of which 
has typically been restricted due to the high 
cost and specification of components.
Portfolio Investments
Our investments are focused where there is potential for significant growth.
Investment Process
We receive a steady stream of investment 
opportunities from a variety of sources 
including our clients, via university 
partnering agreements, our website  
and professional advisers. 
Before we make a new investment we 
conduct rigorous due diligence on the 
investment prospect. Due diligence is 
predominantly carried out in-house but 
specialist consultants are typically used  
to validate technology and appraise market 
potential. This process ends with the issuing 
of an investment memorandum that is sent 
to our investment clients. They are then 
invited to meet the management teams  
of prospective portfolio companies and 
question any aspect of the investment 
proposition. Typically the whole process 
will take from two to three months.  
Our methodology, which we have refined 
over the past 11 years, provides a rigorous 
screening process and is one of the 
strengths of the Braveheart model.
Investment Strategy
We invest primarily in technology 
companies and we often start investment 
early in a company’s life. This means that 
we can take a meaningful position for a 
relatively modest amount of capital and  
increase our exposure as the investment 
heads towards an exit. 
We believe in strong corporate governance 
and a reporting regime from an early stage 
and, whilst we monitor our portfolio closely, 
we focus on managing and supporting the 
managers rather than managing the 
underlying businesses. 
We look for balance in terms of sector and 
stage within our portfolio, as is evidenced 
by the matrix shown on page 13.
 
The types of company in which we  
invest usually require a number of rounds  
of funding. This means that we have a 
strong follow-on policy, although we 
re-evaluate a company on each occasion  
it requires further funding. 
“ Current conditions 
would suggest that  
near-term exit 
opportunities will  
come via the trade  
sale route rather  
than the IPO route.”
Braveheart Investment Group plc Annual Report & Accounts 2008 11 In situations where one of our portfolio 
companies has not met its technical or 
commercial milestones, we may hedge risk 
by providing short-term funding in the 
form of a convertible instrument. 
This table shows the portfolio companies 
that the Group and its clients have invested 
in (excluding the CPR portfolio) with the 
first year of investment by the Group  
and/or its clients and the number of rounds 
of equity funding that they have received. 
Company No. of Rounds Date of First Investment
Alivox Ltd 2 July 2005
AppShare Ltd 1 March 2008
Atlas Genetics Ltd 1 December 2007
Biopta Ltd 2 November 2004
Cascade Technologies Ltd 2 March 2006
Conjunct Ltd  1 March 2008
Design LED Products Ltd 2 March 2005
Dimensional Imaging Ltd 3 December 2005
Eastern Choice Ingredients Ltd* 2 March 2001
EctoPharma Ltd 1 March 2007
Edinburgh Robotics Ltd 2 February 2006
Elonics Ltd 1 February 2008
MicroEmissive Displays Group plc 3 March 2004
MicroStencil Ltd 2 April 2005
NiTech Solutions Ltd 1 December 2006
NXVision Ltd 2 September 2006
PSI Electronics Ltd 2 January 2006
Pufferfish Ltd 2 May 2006
Pyreos Ltd 1 December 2007
quantum Filament Technologies Ltd 2 April 2005
Spiral Gateway Ltd 2 September 2004
Tayside Flow Technologies Ltd 4 November 2002
The Capital Pub Company 2 plc 2 April 2004
The Capital Pub Company plc 2 May 2002
Traak Systems Ltd 1 August 2007
Virtual Well Engineer Ltd 1 March 2005
*No Group investment in this company   
c hieF invest Ment OFFicer’ s r ePOrt 
CONTINUED
Portfolio Investments
Our investments are focused where there is potential for significant growth.
Cascade Technologies 
is a spin-out from the University of 
Strathclyde. The company has created novel 
technology which uses quantum cascade 
lasers to provide breakthrough products 
that create instant DNA type fingerprints  
of gases, enabling their presence and 
quantity to be detected. The technology 
can be applied to multiple applications such 
as emissions monitoring in the marine and 
power generation industries, and the 
detection of explosives and chemical agents. 
Elonics was founded in 2003 and is 
based in Livingston. The company is a 
fabless mixed-signal semiconductor 
company specialising in the development 
and sale of multi-band radio frequency  
IC products. DigitalTune™ is the company’s 
flexible radio tuner chip platform that  
can be configured to support different 
standards and frequencies for a number  
of applications. It will initially be used to 
develop a flexible TV tuner component for 
portable and handheld devices offering the 
manufacturer low power consumption and 
low system costs. 
Traak Systems was founded in 
2005 and is a spin-out of the University  
of Edinburgh. It is developing intelligent 
self-learning radio frequency identification 
(RFID) and sensor network solutions for the 
growing RFID sector. RFID technology is 
commonly used in a wide variety of 
industries such as retail, transportation, 
logistics and healthcare. The company’s 
highly optimised solution will efficiently 
process the raw data from RFID tags in 
complex environments such as airports, 
hospitals and manufacturing plants. 
“ The types of company in 
which we invest usually 
require a number of 
rounds of funding.”
12 Forward Strategy 
In common with other investor groups,  
we are concerned about adverse change  
in the market place. Capital is already more 
scarce for publicly quoted technology 
companies and in time this will filter down 
into the unquoted sector.
 
This means two things for us: firstly,  
there will be good buying opportunities  
for new portfolio entities, and secondly,  
we are going to need to support our 
existing portfolio companies with more 
capital than perhaps we might have 
expected 12 months ago. Our forward 
investment strategy is therefore directed  
at making new investments only where  
we believe there is outstanding value to be 
had, and supporting our existing portfolio 
with our own balance sheet and via the 
partnering or co-investment arrangements 
we have in place. 
Carolyn Smith
Chief Investment Officer
Company Subsector 
Alivox Ltd Software & Computer Services 
AppShare Ltd Software & Computer Services 
Atlas Genetics Ltd Healthcare Equipment & Services 
Biopta Ltd Healthcare Equipment & Services 
Cascade Technologies Ltd Technology Hardware & Equipment 
Conjunct Ltd Electronic & Electrical Equipment 
Design LED Products Ltd Electronic & Electrical Equipment 
Dimensional Imaging Ltd Software & Computer Services 
EctoPharma Ltd* Pharmaceuticals & Biotechnology 
Edinburgh Robotics Ltd Software & Computer Services  
Elonics Ltd Technology Hardware & Equipment 
MicroEmissive Displays Group plc Electronic & Electrical Equipment 
MicroStencil Ltd Technology Hardware & Equipment 
NiTech Solutions Ltd Technology Hardware & Equipment 
NXVision Ltd Software & Computer Services 
PSI Electronics Ltd Technology Hardware & Equipment 
Pufferfish Ltd Electronic & Electrical Equipment 
Pyreos Ltd Technology Hardware & Equipment 
q uantum Filament Technologies Ltd Electronic & Electrical Equipment 
Spiral Gateway Ltd Software & Computer Services 
Tayside Flow Technologies Ltd Healthcare Equipment & Services 
The Capital Pub Company 2 plc Travel & Leisure 
The Capital Pub Company plc Travel & Leisure 
Traak Systems Ltd Electronic & Electrical Equipment 
Virtual Well Engineer Ltd Software & Computer Services 
CPR 
Adaptive Venture Managers Ltd Equity Investment Instruments 
Bloxx Ltd Software & Computer Services 
Hydrosense Ltd Support Services 
Intrallect Ltd Software & Computer Services 
Orkell Ltd Software & Computer Services 
Scalar Technologies Ltd Electronic & Electrical Equipment 
Verbalis Ltd Software & Computer Services   
Number 3 15 12 2
Seed
Early
Expansion
q uoted
Group’s Portfolio
The Group’s portfolio (including the CPR portfolio) comprised 32 companies as at the year end:
*Also a CPR company
Pyreos has developed a patented thin 
film pyro-electric ceramic technology for 
initial use in a new range of infra-red sensor 
products. The technology will initially be 
applied for use in mass market and high 
value specialist applications such as motion 
detectors, spectroscopy and infra-red 
cameras. The core technology and 
production process was developed at 
Siemens in Germany over a number of years 
and the company was formed in Edinburgh 
in July 2007. 
Atlas Genetics is a healthcare 
company formed in 2005 as a spin-out  
of Bath University. The company is 
developing a ‘point of care’ molecular 
diagnostic platform for the rapid detection 
of DNA. The company is currently working 
on tests for meningitis, chlamydia, Group B 
Streptococcus and the hospital superbug 
MRSA. The company’s novel, simple and 
low-cost method will give the clinician an 
immediate assessment in less than 30 
minutes from taking the patient sample. 
Bloxx is an established company that 
has developed and launched a new range 
of web filtering network appliances which 
help organisations proactively manage 
access to web content and prevent 
unsavoury websites reaching computer 
users. Using patented language analysis 
and intelligent identification techniques, 
the company’s Tru-View technology 
analyses and blocks websites quickly and 
accurately providing instant classification  
of web content as soon as it is accessed.
*Also a CPR company 
Braveheart Investment Group plc Annual Report & Accounts 2008 13 BOard OF direct Ors
1 2 3
4 5 6
7 8
14 1 Garry Watson obe c a 
c hairman
Garry Watson is a former managing director of Hill Samuel Bank 
(Head of Investment Finance), Legal Services Ombudsman for 
Scotland and a Governor and Deputy Chairman of the Macaulay 
Land Use Research Institute in Aberdeen. He is currently a director 
and chairman of the Audit Committee of Places for People Group, 
a major UK provider of mixed tenure housing.
2 Geoffrey Thomson 
c hief executive Officer
One of the founders of Braveheart, Geoffrey Thomson is well 
known as a deal maker and business angel. He has run his own 
venture capital backed group of companies and spent five years 
working as a company doctor specialising in restructuring and 
refinancing of SMEs. Geoffrey has written columns on investment 
for various national broadsheets and regularly speaks at business 
events in Scotland. Other than Braveheart, Geoffrey is a director  
of NESTech (the challenge fund of the universities of St Andrews, 
Dundee and Aberdeen), and sits on the advisory boards of the 
Engineering and Physical Sciences Research Council (EPSRC) and 
the Saltire Foundation Fellowship Programme. 
3 Ken Brown b a c a non-executive director
Ken has recently retired as Finance Director of Kenmore Property 
Group. During his time with Kenmore gross assets grew from 
£40m to £1.7bn and profits from £1m to £30m. He has extensive 
experience of negotiating corporate acquisitions and disposals,  
of structuring joint venture arrangements and of arranging both 
equity and debt finance. Prior to joining Kenmore he spent  
12 years as Group Finance Director of two quoted companies.  
He is currently a non-executive director of four other companies.
4 Shonaig Macpherson c b e f r s e 
non-executive director
Shonaig Macpherson joined the board of Braveheart in October 
2005 after retiring as senior partner of McGrigors, one of Scotland’s 
leading legal firms. Shonaig is currently Chairman of the Scottish 
Council for Development and Industry, Chairman of ITI Scotland 
Limited, a Fellow of the Royal Society of Edinburgh and Chairman 
of The National Trust for Scotland.
5 Edward Cunningham c b e f r s e non-executive director
Edward Cunningham has UK and international industry 
experience. Latterly he was Director, Industry and Enterprise 
Development with the Scottish Development Agency. He has been 
chairman of a number of 3i-invested companies as well as other 
companies including the Scottish Exhibition & Conference Centre. 
He has also been a director of TSB Bank Scotland and Watson & 
Philip. He is currently chairman of two companies and is on the 
board of two other companies and two charitable trusts.
6 Carolyn Smith a cis 
c hief investment Officer
Carolyn Smith has an honours degree in accountancy from  
the University of Stirling and is a Chartered Secretary. She spent 
five years working in insolvency before moving to business 
development and investment. After five years working in private 
equity she joined Braveheart in 2000.
7 Jeremy Delmar-Morgan ma msi non-executive director
Jeremy was a partner in Hoblyn, Dix & Maurice and a director of 
Vickers Da Costa before joining Teather & Greenwood in 1979 
where he went on to become chairman. He subsequently joined 
Hichens, Harrison & Co as chairman in 2004. He is a director of 
London Symphony Orchestra and Sefton Resources Inc. and 
chairman of The Brendoncare Foundation and of Eagle Crown 
Productions Ltd. Jeremy joined the board of Braveheart  
in June 2008. 
8 Donald Turner c a 
non-executive director
Donald Turner was Managing Partner, Regions and Managing 
Partner for Scotland and Northern Ireland for Ernst & Young and 
retired from that firm as Regional Chairman Scotland in 2001.  
He is a past chairman and board member of the Scottish Council 
for Development and Industry and was a non-executive director  
of Young Enterprise Scotland. He is a former council member of 
the Institute of Directors and a past Chairman Scotland of The 
Princess Royal Trust for Carers. 
Braveheart Investment Group plc Annual Report & Accounts 2008 15 The directors present their report together with the audited 
financial statements for the year ended 31 March 2008.
Principal Activities
The Group’s principal activities during the year continued to be  
the commercialisation of intellectual property and the provision  
of investment management services. Investment is made from  
the Group’s own resources and on behalf of private clients.
Business Review and Future Developments
Accompanying this Directors’ Report are the Chairman’s 
Statement, Chief Executive Officer’s Report, Chief Investment 
Officer’s Report, Corporate Governance Statement and Directors’ 
Remuneration Report. 
A review of the business and the future developments of the 
Group is presented in the Chairman’s Statement on pages 4 to 6 
and the Chief Executive Officer’s Report on pages 7 to 9 and the 
and Chief Investment Officer’s Report on pages 10 to 13.
Results and Dividends
The financial statements of the Group and the Company for the 
year to 31 March 2008 are set out on pages 25 to 45.
The Group’s consolidated profit for the year, after taxation,  
was £99,183 (2007: loss £156,896), which has been transferred  
to reserves.
The directors do not recommend payment of a dividend for the 
year (2007: nil).
Share Capital
Details of the structure of the Company’s share capital and the 
rights attaching to the shares are set out in note 17 to the 
consolidated financial statements. 
The Company had 13,403,895 allotted, called up and fully paid 
ordinary shares of 2p each.
The Company is not subject to any externally imposed capital 
requirements.
There are no specific restrictions on the size of a holding nor on  
the transfer of shares, which are both governed by the general 
provisions of the Company’s articles of association (the ‘Articles’) 
and prevailing legislation.
Power to purchase the Company’s own shares is provided in the 
Company’s Articles subject to statutory provisions. The directors 
have no existing authority to purchase the Company’s own shares.
Articles of Association
The Company’s Articles may be amended by a special resolution of 
the shareholders.
Appointment and Replacement of Directors
The Company may by ordinary resolution appoint a person who  
is willing to act as a director, either to fill a vacancy or in addition  
to the existing directors and may also determine the rotation in 
which any additional directors are to retire. Any person so 
appointed by the directors shall hold office only until the 
conclusion of business at the next annual general meeting and  
shall be eligible for reappointment by ordinary resolution at that 
meeting. The Company may also by ordinary resolution remove  
a director from office.
At each annual general meeting of the Company, directors eligible 
to retire shall retire from office by rotation. No director shall 
continue to hold office as a director after the third annual general 
meeting following his election or re-election without submitting 
themselves for re-election at the said third annual general meeting.
Directors and Their Interests
The names of the directors who held office during the financial 
year along with their biographical details are shown on page 15. 
No director had a material interest in any contract, other than their 
contract for services, during or at the end of the financial year that 
was significant to the Group’s business.
Directors’ Interests in Shares
The interests of the directors (all of which are beneficial, with the 
exception of 39,062 shares held by Garry Watson’s spouse, 13,750 
shares held in trust for Garry Watson’s children and 5,000 shares 
held in trust for Garry Watson’s grandchild) in the ordinary shares 
of the Company, as stated in the register of directors’ interests,  
are shown below:
  At 31 March 2008 At 1 April 2007
Directors Ordinary shares Ordinary shares
  
G C B Thomson  2,750,890 2,750,890
C Smith 231,680 231,680
G S Watson 328,177 328,177
E B Cunningham 493,275 493,275
D I Turner 149,490 149,490
A L A S Macpherson 25,000 25,000
J K Brown – –
No notification of any change in the above interests has been 
received in the period from 31 March 2008 to the date of this report.
direct Ors’ re POrt
FOR THE YEAR ENDED 31 MARCH 2008
16 Significant Shareholdings
As at 31 March 2008, the following beneficial owners each held 
3% or more of the Company’s issued share capital:
Name Number Percentage
G C B Thomson 2,750,890  20.52
Kenmore Private Equity Ltd 2,500,000  18.65
Uberior Investments plc  
(a subsidiary of HBOS plc) 1,338,410 9.98
A M Threipland 523,411 3.90
E B Cunningham 493,275 3.68
K J Campbell 454,500 3.39
W G Thomson 425,000 3.17
Schweco Nominees Ltd 406,250 3.03
Financial Instruments
The Group and Company’s financial instruments comprise 
investments designated at fair value through profit or loss,  
cash, trade debtors and limited trade creditors that arise directly 
from its operations. The main purposes of these financial 
instruments are to provide returns from investment and finance  
for the Group’s operations.
Risk Management
Investments in securities expose the Group to certain inherent 
risks, the most predominant of which are liquidity risk and market 
price risk. The Board reviews and agrees policies for managing 
each of these risks. Disclosures regarding risks are provided  
within the Chief Executive Officer’s Report and note 22 to the 
financial statements.
Events After the Balance Sheet Date
Events since the balance sheet date are described within the  
Chief Executive Officer’s Report on pages 7 to 9.
Going Concern
The directors have reviewed the Company’s budgets and plans  
and are satisfied that the Group and the Company have adequate 
resources to continue in operational existence for the foreseeable 
future and that it is therefore appropriate to continue to adopt the 
going concern basis in preparing the financial statements.
Creditor Payment Policy
The Group’s policy is to:
a)  agree payment terms with each supplier when placing orders 
and 
b) adhere to the agreed terms.
The Group’s average creditor payment period at 31 March 2008 
was 25 days (2007: 32 days). 
Political and Charitable Donations
It is the Board’s policy not to make charitable and political 
donations which exceed £200. The Group did not make any such 
donations in the year.
Annual General Meeting
Notice of the Annual General Meeting is set out on pages 46 to 
48. Information relating to certain of the resolutions is given or 
referred to in the notes forming part of the notice.
Disclosure of Information to Auditor
All of the current directors have taken all the steps that they  
ought to have taken to make themselves aware of any information 
needed by the Group’s auditor for the purposes of its audit and to 
establish that the auditor is aware of that information. The directors 
are not aware of any relevant audit information of which the 
auditor is unaware.
Auditor
A resolution proposing the reappointment of Ernst & Young LLP 
will be put to the shareholders at the forthcoming Annual  
General Meeting.
On behalf of the Board
Carolyn Smith
Company Secretary
 
Braveheart Investment Group plc Annual Report & Accounts 2008 17 Corporate Governan Ce Statement
The directors recognise the importance of sound corporate governance. As a company whose shares are traded on AIM, the Group is not 
obliged to comply with the corporate governance regime as set out in the Combined Code, but it does support the principles of the Code. 
It complies with the Quoted Companies Alliance’s Corporate Governance Guidelines for AIM Companies insofar as it is reasonably 
practicable for a public company of its size and nature. The directors have adopted a code of conduct for dealings by directors and 
employees which complies with the AIM Rules and are committed to maintaining the highest standards of corporate governance.
The Board of Directors 
During the year the Board comprised seven directors: the Chairman, Garry Watson; four non-executive directors, Edward Cunningham, 
Shonaig Macpherson, Donald Turner and Ken Brown; and two executive directors, the Chief Executive Officer, Geoffrey Thomson and 
Chief Investment Officer, Carolyn Smith. Jeremy Delmar-Morgan joined the Board as a non-executive director on 3 June 2008. Certain 
executive and non-executive directors are clients of Braveheart Ventures Limited, the Company’s investment management subsidiary. 
Further information regarding related party transactions during the year is detailed in note 21 to the financial statements. 
Biographical details of the directors are set out on page 15. Executive and non-executive directors are subject to re-election at intervals of 
no more than three years. The letters of appointment of all directors are available for inspection at the Company’s registered office during 
normal business hours. 
All members of the Board and its committees served throughout the year with the exception of Ken Brown who was appointed on  
12 September 2007.
The Board meets at least eight times per annum. It has appointed an Audit and Risk Management Committee, Remuneration Committee 
and has recently established a Nominations Committee, particulars of which appear hereafter.
Non-executive Directors
The non-executive directors have a broad range of experience, as evidenced by their biographies that appear on page 15, and are well 
equipped to bring independent judgement to bear on issues of strategy, performance, resources and standards of conduct that are vital 
to the success of the Company.
The Board has adopted guidelines for the appointment of non-executive directors which have been in place and which have been 
observed throughout the year. These provide for the orderly and constructive succession and rotation of the chairman and non-executive 
directors insofar as both chairman and non-executive directors will be appointed for an initial term of three years and may, at the Board’s 
discretion, be appointed for a second such term. The Chairman may serve as a non-executive director before commencing a first term  
as chairman.
In accordance with the Companies Act 2006, the directors comply with: a duty to act within their powers; a duty to promote the  
success of the Company; a duty to exercise independent judgement; a duty to exercise reasonable care, skill and diligence; a duty to  
avoid conflicts of interest; a duty not to accept benefits from third parties and a duty to declare any interest in a proposed transaction  
or arrangement.
Delegation of Responsibilities by the Board of Directors
Ultimate authority for all aspects of the Company’s activities rests with the Board, the respective responsibilities of the Chairman and 
Chief Executive Officer arising as a consequence of delegation by the Board. The Board has adopted two statements; the first sets out 
matters which are reserved to the Board and the second establishes the division of responsibilities between the Chairman and the Chief 
Executive Officer. The Chairman is responsible for the effectiveness of the Board and for ensuring communication with shareholders, 
while management of the Company’s business has been delegated by the Board to the Chief Executive Officer.
Audit and Risk Management Committee
The Audit and Risk Management Committee comprises Donald Turner, Edward Cunningham and from 12 September 2007 Ken Brown, 
with Donald Turner acting as chairman of the Committee. The Committee has primary responsibility for monitoring the quality of internal 
controls and ensuring that the financial performance of the Group is properly measured and reported. It receives reports from the executive 
management and auditors relating to the interim and annual accounts and the accounting and internal control systems in use throughout 
the Group. The Audit and Risk Management Committee meets not less than three times in each financial year and has unrestricted access 
to the Group’s auditor.
18 Remuneration Committee
During the year, the Remuneration Committee comprised Edward Cunningham, Shonaig Macpherson and Garry Watson with Edward 
Cunningham as its chairman. The Remuneration Committee reviews the performance of the executive directors and employees and 
makes recommendations to the Board on matters relating to their remuneration and terms of employment. The Remuneration 
Committee also considers and approves the granting of share options and other equity incentives pursuant to the share option plan  
and any other share option scheme or equity incentive scheme in operation from time to time.
Nominations Committee
The Nominations Committee was established in April 2008 and meets as and when required. The committee comprises Garry Watson 
and Edward Cunningham, with Edward Cunningham acting as chairman. The committee is responsible for the identification and 
nomination of candidates for the roles of chairman, CEO, other executive directors and non-executive directors. Its remit extends to  
the nomination of all directors of subsidiary companies and with succession planning in relation to the above aforementioned posts. It is 
also concerned with matters relating to corporate governance, insofar as they may relate to concerns or complaints from shareholders 
concerning the conduct of Board directors, and bringing any such issue to the attention of the Board.
Attendance at Board and Committee Meetings 
The following table summarises the number of board and committee meetings held during the year and the attendance record of 
individual directors.
    Audit and Risk  
   Board Management Remuneration
No. of meetings in the year   8 4 2
G S Watson   8  2
E B Cunningham   7 3 2
A L A S Macpherson   5  0
D I Turner   8 4 
G C B Thomson   8  
C Smith   8  
J K Brown (appointed 12/9/07)   5 2 
Share Dealings
The Company has adopted, with effect from the date on which its shares were admitted to AIM, a code for directors’ and employees’ 
dealings in securities that is appropriate for a company whose securities are traded on AIM and is in accordance with rule 21 of the  
AIM rules.
Investment Authorities
Investment authorities are reviewed in March of each year and more frequently as determined by the Board. These authorities relate  
to the maximum amount that the executive directors may invest from the Group’s balance sheet in any one portfolio company. 
Investments outwith the agreed parameters may be made with the agreement of a non-executive director or by the Board.
Risk Management and Internal Control
Risk management is the responsibility of the Risk Management Group, consisting of the Chief Executive Officer, Chief Investment Officer 
and Financial Controller. The Risk Management Group reports to the Audit and Risk Management Committee, which is responsible to the 
Board for ensuring that procedures are in place, and are being effectively implemented to identify, evaluate and manage the significant 
risks faced by the Company. A risk assessment matrix sets out those risks, identifies their ownership and the controls that are in place. 
Management updates this matrix as changes arise in the nature of risks or the controls that are necessary to mitigate them. The Audit  
and Risk Management Committee reviews the matrix and the effectiveness of scenario testing by management on a regular basis.
Braveheart Investment Group plc Annual Report & Accounts 2008 19 The following key risks, and controls to mitigate them, have been identified:
Management Recruitment and retention of staff Stimulating and safe working environment; balancing 
salary with longer term incentive plans
Regulatory adherence Breach of rules Strong compliance regime
Strategic Reputation Good in-house reviews; effective communications 
with shareholders, road shows; robust compliance;
Disaster recovery Secure off site storage of data; two networks
Financial Inappropriate controls and accounting policies Appropriate authority levels; Audit and Risk 
Management Committee
The directors have established procedures, as represented by this statement, for the purpose of providing a system of internal control.  
An internal audit function is not considered necessary or practical due to the size of the Company and the close day-to-day control 
exercised by the executive directors. However, the Board will continue to monitor the need for an internal audit function.
Communication with Shareholders
The Board has always sought to maintain good communication with its shareholders. The Company has particularly close relationships 
with its investment clients, many of whom are also shareholders, and the Board is convinced that the Company’s progress will be 
enhanced by listening carefully to the views of both shareholders and clients, many of whom are experienced business people and 
successful entrepreneurs.
Institutional shareholders, private client brokers and analysts will have the opportunity to discuss issues and provide feedback in the course 
of road show presentations following the announcement of preliminary and interim results, and the Company seeks regular feedback from 
its stockbroker and PR adviser. Private shareholders, indeed all shareholders, are encouraged to attend the Company’s AGM. Investors have 
access to current information on the Company though its website, www.braveheart-ventures.co.uk, and via Andrew McInroy, its Investor 
Relations Officer, who is available to answer investor relations enquiries.
Corporate Governan Ce Statement
CONTINUED
Activity Risk Control
20 Dire Ctor S’ remuneration report
INFo RMATIo N No T SuBj ECT To Au DIT
Remuneration Committee
The Remuneration Committee is comprised entirely of non-executive directors. During the year under review it was chaired by Edward 
Cunningham and its other members were Garry Watson and Shonaig Macpherson. The Chief Executive, Geoffrey Thomson, attends by 
invitation and assists the Committee. 
The Committee met twice during the year.
Remuneration Policy
The Remuneration Committee reviews the remuneration of executive directors towards the end of each financial year. The overall policy 
of the Committee is to enable the Company to secure and retain the skills and experience required to ensure that its corporate objectives 
are achieved, including an increase in shareholder value.
Determination of Directors’ and Senior Management Salaries
The Remuneration Committee determines these salaries in relation to the tasks and responsibilities involved and the level of comparable 
salaries in the market place. In particular, the Committee seeks to ensure that salaries are competitive. The Committee takes performance 
into account through the Company’s appraisal process. In its final determination of salaries, the Committee’s conclusions are set within 
what is affordable. The Company did not contribute to any pension schemes nor provide any benefits in kind during the year, however, 
post year end, the Company has put in place a private medical insurance plan which is open to all executive directors and employees. 
Executive Director Service Agreements
Each of the executive directors has a service agreement with the Company. These agreements can be terminated by either party giving 
the other written notice at any time, not less than six months in the case of Geoffrey Thomson and not less than three months in the case 
of Carolyn Smith. Payments on termination are restricted to the value of the salary for the notice period.
Non-executive Directors
The fees payable to the Chairman and the non-executive directors are first reviewed by the Remuneration Committee, taking into account 
market rates, following which it submits recommendations to the Board for approval.
The Chairman and each non-executive director have agreed a letter of appointment which sets out their duties, responsibilities and fees.
INFo RMATIo N SuBj ECT To Au DIT
Directors’ Remuneration 
The total amount of directors’ remuneration is set out below:
   Basic  
   salary Total Total
   and fees 2008 2007
   £ £ £
Executive directors:    
G C B Thomson   135,000 135,000 143,788
C Smith   100,000 100,000 86,475
 
Non-executive directors:    
G S Watson    25,000 25,000 7,000
E B Cunningham    10,000 10,000 5,000
D I Turner    10,000 10,000 5,000
A L A S Macpherson    10,000 10,000 5,000
J K Brown (appointed 12 September 2007)   5,385 5,385 –
   295,385 295,385 252,263
No bonuses were paid during the year. During the year ended 31 March 2007, bonuses of £43,788 and £13,975 were paid to  
G C B Thomson and C Smith respectively.
Braveheart Investment Group plc Annual Report & Accounts 2008 21 Share o ption Scheme
The Company offers an approved share option scheme and an unapproved scheme. The former has been approved by HMRC. The latter 
is performance based in relation to the growth in market capitalisation of the Company. Non-executive directors may participate in the 
unapproved scheme. Share options are awarded with regard to the contribution that individuals are expected to make in achieving the 
Company’s objectives.
Share o ptions 
The interests in options of the directors were as follows:
   At Granted Exercised At
   1 April during during 31 March
  Exercise 2007 the year the year 2008
 Option price No. No. No. No.
G S Watson B £1.645 – 100,361 – 100,361
E B Cunningham B £1.645 – 40,079 – 40,079
G C B Thomson A & B £1.645 – 277,958 – 277,958 
D I Turner  B £1.645 – 40,079 – 40,079
C Smith A & B £1.645 – 170,286 – 170,286
No options were exercised during the year.
The options were granted on 18 June 2007 and consist of employment options (A) and performance options (B). 
If a holder of employment options (A) ceases to be in the employment of any member of the Group by voluntary resignation, then all 
subsisting options (options which have neither lapsed nor been exercised), granted less than three years before cessation shall lapse.
The performance conditions for the B options granted in the year are as follows:
Performance target Percentage of the grant vesting
The Company’s market capitalisation exceeds the benchmark price by 50% for  
five consecutive business days at any time before the first anniversary of grant.  33.33%
The Company’s market capitalisation exceeds the benchmark price by 100% for  
five consecutive business days at any time before the second anniversary of grant.  33.33%
The Company’s market capitalisation exceeds the benchmark price by 150% for  
five consecutive business days at any time before the third anniversary of grant.  33.33%
The options vest on the first anniversary following achievement of the performance targets.
The benchmark price is the option exercise price multiplied by the number of ordinary shares in the issued share capital of the company on 
the date of grant of such options.
Additional information on the share options is provided at note 19.
Dire Ctor S’ remuneration report
CONTINUED
22 The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable United Kingdom 
law and those International Financial Reporting Standards (IFRS) as adopted by the European Union.  
The directors are required to prepare financial statements for each financial year, which present fairly the financial position of the 
Company and of the Group and the financial performance and cash flows of the Company and of the Group for that period. In preparing 
those financial statements, the directors are required to: 
1. select suitable accounting policies and then apply them consistently;
2.  present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable 
information; 
3.  provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand  
the impact of particular transactions, other events and conditions on the Company and Group’s financial position and financial 
performance; and
4.  state that the Company and Group have complied with IFRS, subject to any material departures disclosed and explained in the 
financial statements.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial 
position of the Company and of the Group and enable them to ensure that the financial statements comply with the Companies Act 
1985. 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.
 
Statement of Dire Ctor S’ r eSpon Sibilitie S
Braveheart Investment Group plc Annual Report & Accounts 2008 23 We have audited the Group and Parent Company financial statements (the ‘financial statements’) of Braveheart Investment Group plc  
for the year ended 31 March 2008, which comprise the Group Income Statement, the Group and Parent Company Balance Sheets,  
the Group and Parent Company Cash Flow Statements, the Group and Parent Company Statement of Changes in Equity and the related 
notes 1 to 22. These financial statements have been prepared under the accounting policies set out therein.
This report is made solely to the Company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit 
work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an 
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone 
other than the Company and the Company’s members as a body, for our audit work, for this report or for the opinions we have formed.
Respective Responsibilities of Directors and Auditor
The directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with applicable United Kingdom 
law and International Financial Reporting Standards (IFRS) 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).
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements 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 Business Review (Chairman’s Statement, Chief Executive Officer’s Report and Chief Investment Officer’s 
Report) that is cross referenced 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. 
This other information comprises only Braveheart Highlights, Braveheart at a Glance, Chairman’s Statement, Chief Executive Officer’s 
Report, Chief Investment Officer’s Report, Board of Directors, Directors’ Report, Corporate Governance Statement, the unaudited part of 
the Directors’ Remuneration Report, Notice of Annual General Meeting and Company Information. 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 financial information.
Basis of Audit o pinion
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 judgements made by the directors in the preparation of the financial statements, and of 
whether the accounting policies are appropriate to the Group 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. 
o pinion
In our opinion: 
the Group financial statements give a true and fair view, in accordance with IFRS as adopted by the European Union, of the state of the •	
Group’s affairs as at 31 March 2008 and of its profit for the year then ended; 
the Parent Company financial statements give a true and fair view, in accordance with IFRS as adopted by the European Union as •	
applied in accordance with provisions of the Companies Act 1985, of the state of the Parent Company’s affairs as at 31 March 2008;
the 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. •	
Ernst & Young LLP
Registered Auditor
Edinburgh
1 1 August 2008
inDepenDent auDitor’ S r eport
TO THE MEMBERS OF BRAVEHEART INVESTMENT GROUP PLC
24     2008 2007
  Notes  £ £
Revenue  3  659,449 538,686
Realised profit on the disposal of investments    – 78,152
Unrealised profit/(loss) on the revaluation of investments  12  458,142 (82,372)
Deferred consideration    (309,717) –
Finance revenue  6  330,856 48,713
Total income    1,138,730 583,179
    
Employee benefits expense  4  (558,532) (472,400)
Other operating costs  5  (474,187) (274,430)
Total costs    (1,032,719) (746,830)
Profit/(loss) before taxation    106,011 (163,651)
Tax (charge)/credit  8  (6,828) 6,755
Profit/(loss) for the year    99,183 (156,896)
    
Earnings/(loss) per share    Pence Pence
Basic and diluted  10  0.74 (1.6)
All revenues and profits arise from continuing operations.
Group inCome Statement
FOR THE YEAR ENDED 31 MARCH 2008
Braveheart Investment Group plc Annual Report & Accounts 2008 25     2008 2007
  Notes  £ £
ASSETS    
Non-current assets     
Property, plant and equipment  11  26,734 26,217
Investments at fair value through profit or loss  12  2,574,595 896,156
Deferred tax asset  8  – 5,056
    2,601,329 927,429
    
Current assets    
Trade and other receivables  14  442,879 61,602
Current tax asset    24,577 24,577
Cash and cash equivalents  15  4,808,870 6,481,751
    5,276,326 6,567,930
Total assets    7,877,655 7,495,359
    
LIABILITIES    
Current liabilities    
Trade and other payables  16  (198,712) (242,370)
Deferred consideration    (309,717) –
Deferred income    (22,442) (38,770)
    (530,871) (281,140)
Non-current liabilities    
Deferred tax liability  8   (1,772) –
Total liabilities    (532,643) (281,140)
    
Net assets    7,345,012 7,214,219
     
EQuITY    
Called up share capital  17  268,078 268,078
Share premium account    7,008,838 7,001,588
Retained earnings    68,096 (55,447)
Total equity    7,345,012 7,214,219
Approved for issue by the Board of Directors on 11 August 2008 and signed on its behalf by:
Garry S Watson
Chairman
Group balan Ce Sheet
AS AT 31 MARCH 2008
26     2008 2007
  Notes  £ £
ASSETS    
Non-current assets     
Investments at fair value through profit or loss  12  1,855,160 896,156
Investment in subsidiaries  13  274,194 224,190
    2,129,354 1,120,346
    
Current assets    
Trade and other receivables  14  605,522 46,160
Cash and cash equivalents  15  4,616,263 6,160,316
    5,221,785 6,206,476
Total assets    7,351,139 7,326,822
    
LIABILITIES    
Current liabilities    
Trade and other payables  16  (110,464) (86,167)
Current tax liability    (40,694) (15,301)
Total liabilities    (151,158) (101,468)
Net assets    7,199,981 7,225,354
     
EQuITY    
Called up share capital  17  268,078 268,078
Share premium account    7,008,838 7,001,588
Retained earnings    (76,935) (44,312)
Total equity    7,199,981 7,225,354
Approved for issue by the Board of Directors on 11 August 2008 and signed on its behalf by:
Garry S Watson
Chairman
Company balan Ce Sheet
AS AT 31 MARCH 2008
Braveheart Investment Group plc Annual Report & Accounts 2008 27 Group Ca Sh flow Statement
FOR THE YEAR ENDED 31 MARCH 2008
    2008 2007
    £ £
operating activities 
Profit/(loss) before tax    106,011 (163,651)
Adjustments to reconcile profit before tax to net cash flows  
from operating activities    
Depreciation of property, plant and equipment    8,278 7,662
Share-based payments expense    24,360 –
(Increase)/decrease on the revaluation of investments    (456,492) 82,372
(Profit)/loss on disposal of property, plant and equipment    (19) 1,344
Interest income    (330,856) (48,713)
Increase in investments    (1,171,947) (667,097)
(Increase)/decrease in trade and other receivables    (381,277) 103,656
Increase in trade and other payables    178,768 156,549
Tax paid    – (24,577)
Net cash flows from operating activities    (2,023,174) (552,455)
    
Investing activities    
Acquisition of subsidiaries (net of cash acquired)    20,963 –
Purchase cost of property, plant and equipment    (9,448) (6,151)
Proceeds from disposal of property, plant and equipment    672 –
Interest received    330,856 48,713
Net cash flows used in investing activities    343,043 42,562
    
Financing activities    
Proceeds from issue of shares    – 6,968,350
Transaction recoveries/(costs) from issue of shares    7,250 (722,969)
Repayment of capital element of hire purchase contract    – (198)
Net cash flows used in financing activities    7,250 6,245,183
    
Net (decrease)/increase in cash and cash equivalents    (1,672,881) 5,735,290
Cash and cash equivalents as at 1 April    6,481,751 746,461
Cash and cash equivalents as at 31 March    4,808,870 6,481,751
    
    
    
 
28     2008 2007
    £ £
operating activities 
Loss before tax    (7,230) (38,213)
Adjustments to reconcile profit before tax to net cash flows  
from operating activities    
Decrease on the revaluation of investments    162,942 82,372
Interest income    (322,437) (36,721)
Increase in investments    (1,121,946) (667,097)
Increase in trade and other receivables    (559,362) (41,683)
(Decrease)/increase in trade and other payables    (46,666) 69,428
Net cash flows from operating activities    (1,894,699) (631,914)
    
Investing activities    
Acquisition of subsidiaries (net of cash acquired)    20,959 –
Interest received    322,437 36,721
Net cash flows used in investing activities    343,396 36,721
    
Financing activities    
Proceeds from issue of shares    – 6,968,350
Transaction recoveries/(costs) from issue of shares    7,250 (722,969)
Net cash flows used in financing activities    7,250 6,245,381
    
Net (decrease)/increase in cash and cash equivalents    (1,544,053) 5,650,188
Cash and cash equivalents as at 1 April    6,160,316 510,128
Cash and cash equivalents as at 31 March    4,616,263 6,160,316
    
Company Ca Sh f low Statement
FOR THE YEAR ENDED 31 MARCH 2008
Braveheart Investment Group plc Annual Report & Accounts 2008 29 Statement of Changes in Equity for the year ended 31 March 2007
  Share Capital Share Premium Retained Earnings Total
Group  £ £ £ £
Balance at 1 April  127,692 896,593 104,098 1,128,383
Exercise of options  60,566 522,153 – 582,719
Issue of new share capital  79,820 6,305,811 – 6,385,631
Expenses paid in connection with share issue  – (722,969) – (722,969)
Loss for the year  – – (156,896) (156,896)
Share-based payments – current tax  – – 7,750 7,750
Share-based payments – deferred tax  – – (10,399) (10,399)
Balance as at 31 March  268,078 7,001,588 (55,447) 7,214,219
Statement of Changes in Equity for the year ended 31 March 2008
  Share Capital Share Premium Retained Earnings Total
Group  £ £ £ £
Balance at 1 April  268,078 7,001,588 (55,447) 7,214,219
Expenses recovered in connection with share issue  – 7,250 – 7,250
Profit for the year  – – 99,183 99,183
Share-based payments  – – 24,360 24,360
Balance as at 31 March  268,078 7,008,838 68,096 7,345,012
Statement of Changes in Equity for the year ended 31 March 2007
  Share Capital Share Premium Retained Earnings Total
Company  £ £ £ £
Balance at 1 April  127,692 896,593 7,045 1,031,330
Exercise of options  60,566 522,153 – 582,719
Issue of new share capital  79,820 6,305,811 – 6,385,631
Expenses paid in connection with share issue  – (722,969) – (722,969)
Loss for the year  – – (51,357) (51,357)
Balance as at 31 March  268,078 7,001,588 (44,312) 7,225,354
Statement of Changes in Equity for the year ended 31 March 2008
  Share Capital Share Premium Retained Earnings Total
Company  £ £ £ £
Balance at 1 April  268,078 7,001,588 (44,312) 7,225,354
Expenses recovered in connection with share issue  – 7,250 – 7,250
Loss for the year  – – (32,623) (32,623)
Balance as at 31 March  268,078 7,008,838 (76,935) 7,199,981
Statement of Chan GeS in equity 
FOR THE YEAR ENDED 31 MARCH 2008
30 1 Corporate information
The Group’s and Company’s financial statements of Braveheart Investment Group plc (the ’Company’) for the year ended 31 March 2008 
were authorised for issue by the Board of the Directors on 11 August 2008 and the balance sheets were signed on the Board’s behalf by  
Garry Watson.
Braveheart Investment Group plc is a company incorporated in the United Kingdom under the Companies Act 1985. The address of the 
registered office is detailed at the back of this report. The nature of the Group’s operations and its principal activities are set out in the 
Directors’ Report. The Company is registered in Scotland. The Company’s ordinary shares are traded on the London Stock Exchange 
(Alternative Investment Market).
2 Accounting policies
(a) basis of preparation
The Group’s and Company’s financial statements have been prepared in accordance with International Financial Reporting Standards 
(IFRS) as adopted by the European Union as they apply to financial statements for the year ended 31 March 2008 and as applied in 
accordance with the provisions of the Companies Act 1985. The principal accounting policies adopted by the Group and by the Company 
are set out in the following notes.
The Company has taken advantage of the provision of section 230 of the Companies Act 1985 not to publish its own Income Statement.  
The amount of loss for the financial year dealt with in the financial statements of the Company is set out in note 9 to the accounts. 
The financial statements are presented in sterling and all values are rounded to the nearest pound (£) except when otherwise indicated.
(b) Changes in accounting policy
The Group has adopted the following new and amended IFRS interpretations during the year. Adoption of these revised standards and 
interpretations did not have any effect on the financial performance or position of the Group in the current or prior periods. In certain 
cases they did however give rise to additional disclosures.
IFRS 7 Financial Instruments: Disclosures •	
IAS 1 Amendment – Presentation of Financial Statements: Capital Disclosures •	
The principal effect of these changes are as follows:
IFRS 7 Financial Instruments: Disclosures
This standard requires disclosures that enable users of the financial statements to evaluate the significance of the Group’s financial 
instruments and the nature of extent of risks arising from those financial instruments. The new disclosures are included throughout the 
financial statements. While there has been no effect on the financial position or results, comparative information has been revised  
where necessary.
IAS 1 Amendment – Presentation of Financial Statements: Capital Disclosures
This amendment requires the Group to make new disclosures in the financial statements to evaluate the Group’s objectives, policies and 
processes for managing capital.
(c) basis of consolidation
The Group’s financial statements consolidate the results of Braveheart Investment Group plc and its subsidiaries (together referred to as 
the ‘Group’) drawn up to 31 March each year. The financial statements of the subsidiaries used in the preparation of the consolidated 
financial statements are prepared for the same reporting year as the parent company using consistent accounting policies. All intra-group 
balances, transactions, income and expenses are eliminated in full on consolidation.
The subsidiaries have been consolidated from the date of their acquisition, being the date on which the Group obtained control, and will 
continue to be consolidated until the date that such control ceases. Control comprises the power to govern the financial and operating 
policies of the subsidiary so as to obtain benefit from its activities and is achieved through direct ownership.
(d) use of estimates and assumptions
The preparation of the financial statements in conformity with IFRS 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 other factors that are believed to be reasonable under the circumstances, 
the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent 
from other sources. Actual results may differ from these estimates. Where management’s judgement has been applied, this is noted in 
the relevant accounting policy.
note S to the finan Cial Statement S
FOR THE YEAR ENDED 31 MARCH 2008
Braveheart Investment Group plc Annual Report & Accounts 2008 31 The key assumptions concerning the future and other key sources of estimating uncertainty at the balance sheet date, that have a 
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are  
discussed below:
Fair value of unquoted investments
Unquoted investments have been valued by the directors in compliance with the principles of the International Private Equity and Venture 
Capital Guidelines. By using such valuation techniques the directors are required to make reasonable estimates and assumptions and 
hence the figures are subject to uncertainty. The fair value of unquoted investments at 31 March 2008 was £2,427,874 (2007: £720,311).
Share-based payments
The Group measures the cost of equity-settled transactions by reference to the fair value of the equity instruments at the date at which 
they were granted. Judgement is required in determining the most appropriate valuation model for a grant of equity  instruments 
depending on the terms and conditions of the grant. Management are also required to use judgement in determining  the most 
appropriate inputs to the valuation model including expected life of the option, volatility, risk-free rate and dividend yield. The assumptions 
and model used are disclosed in note 19.
(e) r evenue recognition and segmental reporting
The Group earns fee income from the services it provides to its clients. Revenue is recognised at the fair value of the consideration received 
or receivable on fee income, excluding rebates. Revenue can be divided into two types: revenue for services provided over a period (client 
subscription fees) and revenue for transaction-based services (deal fees and monitoring fees). Fees earned for the provision of an ongoing 
service are recognised as that service is provided. Deal fees are earned on individual transactions and related revenue is recognised on 
completion of the underlying transaction. Interest income is recognised using the effective interest method. Dividend income is recognised 
when the Group’s right to receive payment is established. Interest income is interest earned on bank deposit accounts and loan notes.
The business is regarded as one segment due to the nature of services provided and the methods used to provide these services.  
All operations are conducted in the United Kingdom.
(f) taxation
The tax expense represents the sum of the tax currently payable, and deferred tax. Current tax is based on taxable profit for the year. 
Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expenses that are 
deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is 
calculated using tax rates that have been enacted by the balance sheet date. 
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in  
the financial statements and the corresponding tax bases used in the computation of taxable profits (‘temporary differences’) and is 
accounted for using the balance sheet liability method. 
A deferred tax liability shall be recognised for all taxable temporary differences, except to the extent that the deferred tax liability arises 
from (a) the initial recognition of goodwill or (b) the initial recognition of an asset or liability in a transaction which (i) is not a business 
combination and (ii) at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss). Deferred tax assets are 
recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be 
utilised. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is 
realised using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
(g) property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and any recognised impairment.
Depreciation has been provided on the following basis annually: 
 Computer equipment 33.3% reducing balance •	
 Fixtures and fittings 20% reducing balance •	
The carrying value of assets and their useful lives are reviewed at each reporting date and if an indication of impairment exists, the assets 
will be written down to their recoverable amount and the impairment charged to the income statement in the period in which it arises.
note S to the finan Cial Statement S
CONTINUED
32 (h) investments at fair value through profit or loss 
Investments are designated as financial assets at fair value through profit or loss, as it is Group policy to achieve income and capital gains 
through investment in equity shares in the short term. The Group determines the classification of its financial assets at initial recognition 
and re-evaluates this designation at each financial year-end. When financial assets are recognised initially, they are measured at fair value, 
being the transaction price less directly attributable transaction costs.  
In determining fair value, investments have been valued by the directors in compliance with the principles of the International Private 
Equity and Venture Capital Guidelines, updated and effective 2 January 2007, as recommended by the European Venture Capital 
Association (EVCA).
Where there is no active market, fair value is determined using one of the valuation methodologies set out in the guidelines. These include 
using recent arm’s length market transactions; reference to the current market value of another instrument, which is substantially the same; 
earnings or profit multiples; indicative offers; and discounted cash flow analysis and pricing models. In calculating fair value, the directors 
have also taken account of rights which when exercised either enhance or diminish the value of the investment. These rights are reviewed 
on a regular basis to assess whether they are likely to be exercised. The extent of any impact on the value of the investments has been 
calculated on the basis that all quantifiable rights are, or are likely to be exercisable, or that occur automatically on certain events taking 
place, such as exit and liquidation preferences on realisation. Otherwise assets will be carried at cost less impairment provision. 
The fair value of quoted investments is determined by reference to bid prices at the close of business on the balance sheet date. 
The gains and losses arising from changes in fair value are recognised in the income statement in the period in which they arise. 
(i) impairment of financial assets 
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists,  
or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. An asset’s 
recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use, and is determined 
for an individual asset unless the asset does not generate cash inflows that are largely independent of those from other assets or groups 
of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to 
its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax 
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses of 
continuing operations are recognised in the income statement in those expense categories consistent with the function of the impaired asset.
An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may  
no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment 
loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment 
loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount 
cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for 
the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at the revalued amount, in which case the 
reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the 
asset’s revised carrying amount, less any residual value on a systematic basis over its remaining useful life.
  
(j) t he Company’s investment in its subsidiaries
In the Company’s accounts, investment in its subsidiary undertakings is stated at cost less any provision for impairment. 
(k) l eases 
Lease payments under operating leases, where a significant proportion of the risks and benefits remain with the lessor, are recognised on 
a straight line basis over the term of the lease.
(l) Cash and cash equivalents   
Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term deposits maturing between three 
and nine months. For the purposes of the cash flow statement, cash and cash equivalents comprise cash and short-term deposits as 
defined above.
(m) trade receivables
Trade receivables are carried at the lower of invoice value and recoverable amount. Where the time value of money is material, receivables 
are carried at amortised cost. Provision is made when there is objective evidence that a balance will not be recovered in full and balances 
are written off when the probability of recovery is assessed as remote.
Braveheart Investment Group plc Annual Report & Accounts 2008 33 (n) Share-based payments
The cost of equity-settled transactions with employees is measured by reference to the fair value at the date at which they are granted 
and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to 
the award. Fair value is determined using an appropriate pricing model. In valuing equity-settled transactions, no account is taken of any 
vesting conditions, other than conditions linked to the price of the shares of the Company (market conditions).
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, 
which are treated as vesting irrespective of whether or not the market condition is satisfied, provided that all other performance 
conditions are satisfied.
At each balance sheet date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period  
has expired and management’s best estimate of the achievement or otherwise of non-market conditions and of the number of equity 
instruments that will ultimately vest or, in the case of an instrument subject to a market condition, be treated as vesting as described above. 
The movement in cumulative expense since the previous balance sheet date is recognised in the income statement, with a corresponding 
entry in equity.
Where the terms of an equity-settled award are modified or a new award is designated as replacing a cancelled or settled award, the cost 
based on the original award terms continues to be recognised over the original vesting period. In addition, any expense is recognised over 
the remainder of the new vesting period for the incremental fair value of any modification, based on the difference between the fair value 
of the original award and the fair value of the modified award, both as measured on the date of the modification. No reduction is 
recognised if this difference is negative.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any cost not yet recognised in 
the income statement for the award is expensed immediately. Any compensation paid up to the fair value of the award at the cancellation 
or settlement date is deducted from equity, with any excess over fair value being treated as an expense in the income statement.
(o) business combinations
The Group uses the purchase method of accounting to account for acquisition of subsidiaries. The cost of an acquisition is measured as 
the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly 
attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are 
measured initially at their fair value at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of 
acquisition over the fair value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition 
is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the income statement.
(p) new standards and interpretations not yet applied 
IASB and IFRIC have issued the following standards and interpretations with an effective date after the date of these financial statements:
International Accounting Standards (IAS/IFRS)  Effective date*
IFRS 1 Amendments to IFRS 1 – First-time adoption of International Financial Reporting Standards 1 May 2008
IFRS 2 Amendment to IFRS 2 – Vesting Conditions and Cancellations  1 January 2009
IFRS 3 Business Combinations (revised January 2008)  1 July 2009
IFRS 8 Operating Segments  1 January 2009
IAS 1 Presentation of Financial Statements (revised September 2007)  1 January 2009
IAS 23 Borrowing Costs (revised March 2007)  1 January 2009
IAS 27 Consolidated and Separate Financial Statements (revised January 2008)  1 July 2009
International Financial Reporting Interpretations Committee (IFRIC)
IFRIC 12 Service Concession Arrangements  1 January 2008
IFRIC 13 Customer Loyalty Programmes  1 July 2008
IFRIC 14 IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction 1 January 2008
note S to the finan Cial Statement S
CONTINUED
34 The Group is currently assessing the effects of implementing the revision to IFRS 1.
The amendment to IFRS 2 restricts the definition of vesting conditions to include only service conditions (requiring a specified period of 
service to be completed) and performance conditions (requiring the other party to achieve a personal goal or contribute to achieving a 
corporate target). All other features are not vesting conditions, and whereas a failure to achieve such a condition was previously regarded 
as a forfeiture (giving rise to a reversal of amounts previously charged to profit) it must be reflected in the grant date fair value of the 
award and treated as a cancellation, which results in either an acceleration of the expected charge, or a continuation over the remaining 
vesting period, depending on whether the condition is under the control of the entity or counterparty. The amendment is mandatory for 
periods beginning on or after 1 January 2009 and the Group is currently assessing its impact on the financial statements, although it is 
not expected to be material.
The Group does not anticipate the early adoption of the revised IFRS 3 and so will apply it prospectively to all business combinations  
on or after 1 April 2010. Whilst it is not possible to estimate the outcome of adoption, the key features of the revised IFRS 3 include a 
requirement for acquisition-related costs to be expensed and not included in the purchase price, and for contingent consideration to  
be recognised at fair value on the acquisition date (with subsequent changes recognised in the income statement and not as a change  
to goodwill). The standard also changes the treatment of non-controlling interests (formally minority interests) with an adoption to 
recognise these at full fair value as at the acquisition date and a requirement for previously held controlling interests to be fair value as  
at the date control is obtained, with gains and losses recognised in the income statement.
In November 2006, the IASB issued IFRS 8 Operating Segments which becomes effective for periods commencing on or after 1 January 
2009. This standard requires disclosure on the financial performance of the Group’s operating segments. The Group will apply IFRS 8 for 
its accounting period commencing 1 April 2009. The Group does not consider that the future adoption of this standard, in the form 
currently available, will have any material impact on the financial statements as presented.
Whilst the revised IAS 1 will have no impact on the measurement of the Group’s results or net assets it is likely to result in certain changes 
in the presentation of the Group’s financial statements from 2009 onwards.
IAS 23 has been revised to require capitalisation of borrowing costs when such costs relate to a qualifying asset. A qualifying asset is  
an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. In accordance with the transitional 
provisions in the Standard, the Group will adopt this as a prospective change. Accordingly, borrowing costs will be capitalised on 
qualifying assets with a commencement date of 1 January 2009. No changes will be made for borrowing costs incurred prior to this  
date that have previously been expensed.
IAS 27 revised is effective for annual periods beginning on or after 1 July 2009, with earlier application only permitted when the revised 
IFRS 3 is applied. The revised standard applies retrospectively with some exceptions. IAS 27 revised no longer restricts the allocation to 
minority interest of losses incurred by a subsidiary to the amount of the non-controlling equity investment in the subsidiary. A partial 
disposal of equity interest in a subsidiary that does not result in a loss of control will be accounted for as an equity transaction and will 
have no impact on goodwill nor will it give rise to any gain or loss. Where there is loss of control of a subsidiary, any retained interest will 
have to be re-measured to fair value, which will impact the gain or loss recognised on disposal. The Group is currently assessing the 
impact on its financial statements from adopting IAS 27 revised.
The directors do not anticipate that the adoption of the remaining standards and interpretations will have a material impact on the 
Group’s financial statements in the period of initial application.
*  The effective dates stated here are those given in the original IASB/IFRIC standards and interpretations. As the Group has elected  
to prepare its financial statements in accordance with IFRS as adopted by the European Union, the application of new standards and 
interpretations will be subject to them having been endorsed for use in the EU via the EU Endorsement Mechanism. In the majority  
of cases this will result in an effective date consistent with that given in the original standard or interpretation but the need for 
endorsement restricts the Group’s discretion to adopt standards early.
Braveheart Investment Group plc Annual Report & Accounts 2008 35 3 Revenue     
Revenue is attributable to the principal activities of the Group. All revenue arose within the United Kingdom and the Channel Islands.
    Group Group
    2008  2007
    £ £
Deal fees    488,504 460,448
Client subscriptions    114,970 78,238
Monitoring fees    55,975 –
    659,449 538,686
4 Employee benefits expense    
    Group Group
    2008  2007
    £ £
Salaries    481,768 423,132
Social security costs     52,404 49,268
Expense of share-based payments    24,360 –
    558,532 472,400
The average number of employees (including executive directors) was as follows:     
    No. No.
    9 8
All of the Group’s employees work within management and administration. Braveheart Ventures Ltd employs all employees.  
The remuneration of the directors, who are key management personnel of the Group, is set out in the Directors’ Remuneration Report on 
page 21. 
5 o ther operating costs    
    Group Group
    2008  2007
    £ £
Non-executive directors’ fees    65,007 23,529
Rent and rates    45,872 45,000
Professional fees    130,665 61,955
Travel and entertainment    35,492 12,938
Investment fees    57,797 20,545
Shareholder communications    49,744 –
Depreciation    8,278 7,662
Other expenses    81,332 102,801
    474,187 274,430
6 Finance revenue    
    Group Group
    2008  2007
    £ £
Bank interest receivable    323,507 47,539
Interest on loan notes    7,349 1,174
    330,856 48,713
note S to the finan Cial Statement S
CONTINUED
36 7 Profit/(loss) before taxation   
Profit/(loss) for the year has been arrived at after charging:    
    Group Group
    2008  2007
    £ £
Depreciation of property, plant and equipment    8,278 7,662
Lease payments recognised as an operating lease (office rent)    31,861 45,000
(Profit)/loss on the disposal of plant, property and equipment    (19) 1,344
Auditor’s remuneration:
 – audit of parent     35,000 9,300
 – audit of subsidiary companies    12,750 18,950
 – audit related regulatory reporting    5,500 3,000
 – taxation compliance    4,500 6,540
 – corporate finance services    – 32,770
8 Taxation on profit/(loss) on ordinary activities   
    2008  2007
    £ £
UK corporation tax    – (17,138)
Deferred tax    6,828 10,383
T ax charge/(credit) in the income statement    6,828 (6,755)
    
Tax relating to items charged or credited to equity    
Deferred tax: share-based payments    – 10,399
Current tax: share-based payments    – (7,750)
T ax charge in equity    – 2,649
Reconciliation of total tax charge/(credit):
Profit/(loss) before tax    106,011 (163,651)
    
Tax charge/(credit) on profit on ordinary activities  
at the rate of 20% (2007:19%)    21,202 (31,094)
Disallowed expenses    113,876 12,645
Unrealised (profit)/loss on revaluation of investments    (133,364) 13,493
Increase in unutilised tax losses    8,218 –
Change in prior year estimate    – (311)
Other    (3,104) (1,488)
T otal tax reported in the income statement    6,828 (6,755)
Braveheart Investment Group plc Annual Report & Accounts 2008 37 8 Taxation on profit/(loss) on ordinary activities CONTINUED
Deferred tax    
The deferred tax included in the balance sheet is as follows:
    2008  2007
    £ £
Deferred tax liability     
Accelerated capital allowances    1,772 1,747
Revaluation of investments    – –
Total deferred tax liability    1,772 1,747
    
Deferred tax asset    
Short-term timing differences    – (6,803)
Share-based payments    – –
Total deferred tax asset    – (6,803)
    
Total deferred tax as reported in the balance sheet    1,772 (5,056)
The Group has potential deferred tax assets in respect of:
Excess management expenses of £940,239 arising from Caledonia Portfolio Realisations Ltd; and •	
Unutilised trading losses of £378,071 in Braveheart Ventures Ltd •	
No deferred tax assets have been recognised in respect of these amounts as it is uncertain that there will be suitable taxable profits from 
which the future reversal of the deferred tax could be deducted. 
The Group has a potential deferred tax liability in respect of unrealised gains on the revaluation of investments in the year of £666,821.  
No deferred tax liability has been recognised in this respect because, if these gains were to crystallise in the future they could be offset 
against the Group’s excess management expenses described above.
9 Loss attributable to members of the Parent Company 
    2008  2007
    £ £
Loss of the Parent Company only    (32,623) (51,357)
10 Earnings/(loss) per share
Basic earnings/(loss) per share have been calculated by dividing the earnings attributable to shareholders by the weighted average number 
of ordinary shares in issue during the year.
Diluted earnings/(loss) per share is adjusted for share options granted where the exercise price is less than the average price of the ordinary 
shares during the year.
The calculations of earnings/(loss) per share are based on the following profit/(loss) and numbers of shares in issue:
    2008  2007
    £ £
Profit/(loss) for the year    99,183 (156,896)
    No. No.
Weighted average number of ordinary shares in issue:     
For basic earnings per ordinary share    13,403,895 9,412,875
Dilutive effect of exercisable options    0 0
    13,403,895 9,412,875
note S to the finan Cial Statement S
CONTINUED
38 The exercise price of the share options is £1.645 and the average price of ordinary shares during the period was £1.362. Diluted earnings 
per share adjustment is therefore not required.
There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of 
completion of the financial statements.
11 Property, plant and equipment    
   Fixtures &  Computer 
   fittings equipment Total
Group   £ £ £
Cost
At 1 April 2006   28,636 26,170 54,806
Additions   30 6,121 6,151
Disposals   (1,094) (1,963) (3,057)
At 1 April 2007   27,572 30,328 57,900
Additions   1,529 7,919 9,448
Disposals   – (978) (978)
At 31 March 2008   29,101 37,269 66,370
Accumulated depreciation 
At 1 April 2006   9,943 15,791 25,734
Charge for year   3,715 3,947 7,662
Disposals   (599) (1,114) (1,713)
At 1 April 2007   13,059 18,624 31,683
Charge for year   3,103 5,175 8,278
Disposals   – (325) (325)
At 31 March 2008   16,162 23,474 39,636
Net book value
At 31 March 2008   12,939 13,795 26,734
At 31 March 2007   14,513 11,704 26,217
     
All of the above assets are held within the subsidiary company Braveheart Ventures Ltd.
12 Investments at fair value through profit or loss    
   Unlisted AIM Listed Total 
Group   £ £ £
Valuation at 1 April 2006   306,525 4,906 311,431
Revaluation of investments   (15,314) 3,955 (11,359)
Cost at 1 April 2006   291,211 8,861 300,072
Additions at cost   519,722 205,433 725,155
Transfers   (70,141) 70,141 –
Disposals – Proceeds   – (136,210) (136,210)
 – Gain on disposal   – 78,152 78,152
Cost at 31 March 2007   740,792 226,377 967,169
Unrealised loss on the revaluation of investments   (20,481) (50,532) (71,013)
Valuation at 1 April 2007   720,311 175,845 896,156
Additions at cost   1,123,308 98,639 1,221,947
Transfers    (58,695) 58,695 –
Disposals – Proceeds   (1,650) – (1,650)
Cost at 31 March 2008   1,783,274 333,179 2,116,453
Unrealised profit/(loss) on the revaluation of investments   644,600 (186,458) 458,142
Valuation at 31 March 2008   2,427,874 146,721 2,574,595
Braveheart Investment Group plc Annual Report & Accounts 2008 39 12 Investments at fair value through profit or loss CONTINUED
   Unlisted AIM Listed Total 
Company   £ £ £
     
Valuation at 1 April 2006   306,525 4,906 311,431
Revaluation of investments   (15,314) 3,955 (11,359)
Cost at 1 April 2006   291,211 8,861 300,072
Additions at cost   519,722 205,433 725,155
Transfers   (70,141) 70,141 –
Disposals – Proceeds   – (136,210) (136,210)
 – Profit on disposal   – 78,152 78,152
Cost at 31 March 2007   740,792 226,377 967,169
Unrealised loss on the revaluation of investments   (20,481) (50,532) (71,013)
Valuation at 1 April 2007   720,311 175,845 896,156
Additions at cost   1,023,307 98,639 1,121,946
Transfers    (58,695) 58,695 –
Disposals – Proceeds   (1,650) – (1,650)
Cost at 31 March 2008   1,683,273 333,179 2,016,452
Unrealised profit/(loss) on the revaluation of investments   25,166 (186,458) (161,292)
Valuation at 31 March 2008   1,708,439 146,721 1,855,160
Details of the investments where the nominal value of the holding in the undertaking is 20% or more of any class of share are as follows:
name of Company holding % of shares held nature of business
Verbalis Limited ‘A’ Ordinary shares 100%  Design and production of automated language 
translation systems
13 Investment in subsidiaries
    2008 2007
Company    £ £
Cost
At 1 April 2007    224,190 224,190
Additions    50,004 –
At 31 March 2008    274,194 224,190
The principal subsidiaries, both of which are 100% owned by Braveheart Investment Group plc, are Braveheart Ventures Ltd and 
Caledonia Portfolio Realisations Ltd. The Company holds 100% of the issued 10p ordinary share capital and 100% of the issued 
redeemable preference shares of Braveheart Ventures Ltd and 100% of the issued £1 ordinary shares of Caledonia Portfolio Realisations 
Ltd. Both companies are registered in Scotland.
14 Trade and other receivables 
  Group Group Company Company
   2008  2007  2008  2007
  £ £ £ £
Trade receivables  147,999 26,663 – –
Amounts due from subsidiary undertakings  – – 324,588 18,406
Prepayments and accrued income  180,103 34,939 166,157 27,754
Other receivables  114,777 – 114,777 –
  442,879 61,602 605,522 46,160
Trade receivables are non-interest bearing and stated at their nominal value.
note S to the finan Cial Statement S
CONTINUED
40 15 Cash and cash equivalents
  Group Group Company Company
   2008  2007  2008  2007
  £ £ £ £
Cash at bank and on hand  4,808,870 6,481,751 4,616,263 6,160,316
Cash at bank earns interest at floating rates based on daily bank deposit rates.
16 Trade and other payables 
  Group Group Company Company
   2008  2007  2008  2007
  £ £ £ £
Trade and other payables  78,997 9,516 56,797 –
Amounts due to subsidiary undertaking  – – – 2,667
Other taxes and social security  40,029 84,450 – –
Accruals  79,686 148,404 53,667 83,500
  198,712 242,370 110,464 86,167
Trade payables are non-interest bearing and are normally settled on 30-day terms.
17 Share Capital   
    2008  2007
    £ £
Authorised
33,645,000 ordinary shares of 2p each    672,900 672,900
    
Allotted, called up and fully paid    
13,403,895 ordinary shares of 2p each    268,078 268,078
The Company has one class of ordinary shares which carries equal voting rights, equal rights to income and distribution of assets on 
liquidation or otherwise, and no right to fixed income.
During the year ended 31 March 2007 1,882,575 issued and 117,425 authorised but unissued ordinary shares of 10p each were 
subdivided into 2p ordinary shares on the basis of five new ordinary shares for every one existing ordinary share, resulting in 10,000,000 
ordinary shares of 2p each. On the same date, the authorised share capital was increased from £200,000 to £672,900 by the creation of 
an additional 23,645,000 ordinary shares of 2p each, ranking equally.
During the year ended 31 March 2007 the Company issued 3,991,020 shares of 2p each on admission to the Alternative Investment 
Market of the London Stock Exchange with an aggregate nominal value of £79,820 for a total consideration of £6,385,631.
18 Business Combination
On 4 April 2007, the Group acquired 100% of the share capital of W L Ventures Ltd, now known as Caledonia Portfolio Realisations Ltd 
(CPR). CPR is an unlisted company based in Scotland specialising in making investments in technology businesses. The acquisition consisted 
of a cash consideration of £50,000 and a deferred element of consideration based on future exit values of the portfolio, and has been 
accounted for using the purchase method of accounting. At the date of acquisition deferred consideration was determined to be £nil. 
Braveheart Investment Group plc Annual Report & Accounts 2008 41 18 Business Combination CONTINUED
The fair value of the identifiable assets and liabilities of CPR, determined in accordance with the Group’s accounting policies, at the date of 
acquisition were:
    Fair value  
    recognised on  Previous 
    acquisition carrying value
    £ £
Investments    50,000 631,307
Cash    70,963 70,963
    120,963 702,270
  
Trade payables    70,963 70,963
  
Net assets    50,000 631,307
  
Consideration     50,000 –
At 31 March 2008, based on events following acquisition, these investments are now estimated to have a fair value of £719,435 and 
consequently deferred consideration of £309,717 has been recorded as a liability on the balance sheet. Deferred consideration is due only 
on those investments acquired on the acquisition date and not on any subsequent investments made. It is calculated at 50% of the exit 
value, less the original acquisition cost.
From the date of acquisition, CPR has contributed £323k to the net profit of the Group. The financial statements include the results of 
CPR for the period from the date of acquisition.
19 Share-based payments 
The Group operates approved and unapproved share option schemes.  
o ption plan type vesting period exercise period
A Employment option plan Immediately 18 June 2010 – 17 June 2017
B Performance option plan 1st anniversary following achievement  18 June 2007 – 17 June 2017 
  of performance targets 
The options were granted by the Board taking into account the need to motivate, retain and recruit high-calibre employees. The grant 
date of the options was 18 June 2007. 
The options were granted with an exercise price per share of £1.645, this being the closing mid-market price on AIM of a share in the 
Company on the last business day prior to the date of the grant.
The expense recognised for employee services received during the period is shown below: 
     2008  2007
    £ £
Expense arising from equity-settled share-based payments transactions    24,360 –
    No. No. 
Number of share options: 
Outstanding at the beginning of the year    – 605,656
Granted during the year    843,754 –
Exercised during the year    – (605,656)
Outstanding at the end of the year    843,754 –
Exercisable at the end of the year    – –
note S to the finan Cial Statement S
CONTINUED
42     2008  2007
    £ £
Weighted average exercise price of share options:   
Outstanding at the beginning of the year    – 0.96
Granted during the year    1.65 –
Exercised during the year    – 0.96
Outstanding at the end of the year    1.65 –
Exercisable at the end of the year    – –
The Group uses the ‘Black-Scholes’ model to determine the fair value of the Company’s share options. The following assumptions were 
used in the model to determine the fair value of share options:
    a option b option
Exercise price     £1.645 £1.645 
Dividend yield    0% 0%
Expected volatility    28.08% 28.08% 
Risk-free rate    4.55% 4.55%
Expected term (years)    3 3
Weighted average share price    £1.645 £1.645
The expected term of the options is the midpoint between the date of vesting and the legal life. The expected volatility is derived from 
expected volatility over the expected term taking into account the tendency of volatility to revert to its mean. Consideration is given to 
historical volatility of the share price of quoted comparable companies over the most recent period at the date of grant that is 
commensurate with the expected term of the option. The expected life of the option is based on the best estimate of the directors for  
the effects of non-transferability, exercise restrictions and behavioural considerations.
The Group previously operated an unapproved scheme. The share options were awarded annually by the Board based on individual 
employee performance. In April 2006, before the Group was admitted to AIM, all six of the directors at that time exercised their options. 
o ption plan type vesting period exercise period    
C Discretionary option plan Immediately 12 Dec 2002 – 12 Dec 2012 
D1 Discretionary option plan Immediately 26 Aug 2003 – 26 Aug 2007 
D2 Discretionary option plan Immediately 26 Aug 2003 – 26 Aug 2007 
E Discretionary option plan Immediately 11 May 2004 – 11 May 2009 
E2 Discretionary option plan Immediately 15 Dec 2004 – 15 Dec 2009 
F Discretionary option plan Immediately 19 Apr 2005 – 19 Apr 2010 
G Discretionary option plan Immediately 31 Mar 2006 – 31 Mar 2011 
20 o perating lease commitments
The Group entered into a commercial lease on the office premises in June 2005 for a five-year period. Renewals are at the option of the 
entity that holds the lease. There are no restrictions placed upon the lessee by entering into this lease. 
     2008 2007 
Future minimum rentals payable under operating leases are as follows:    £ £
Future minimum payments due:    
Not later than one year    30,730 45,000
In two to five years    35,852 97,500
    66,582 142,500
21 Related party disclosures
     2008 2007 
Trade and other receivables (note 14) include the following amounts due from subsidiary undertakings:  £ £
Braveheart Ventures Ltd    274,587 18,406
Caledonia Portfolio Realisations Ltd    50,001 –
    324,588 18,406
Braveheart Investment Group plc Annual Report & Accounts 2008 43 21 Related party disclosures CONTINUED
During the year, the Company made loans totalling £200,000 to Braveheart Ventures Ltd in order to ensure compliance with FSA liquidity 
requirements. Other movements during the year relate to VAT reclaimable from H M Revenue & Customs through the group VAT registration.
The Company participated in investing activities totalling £50,001 on behalf of Caledonia Portfolio Realisations Ltd.
All above amounts are unsecured, interest free and repayable on demand.
Transactions between the Company and its subsidiaries are eliminated on consolidation.
Certain executive and non-executive directors are clients of Braveheart Ventures Ltd, the Company’s investment management subsidiary. 
Investment transactions executed on their behalf are carried out on the same commercial terms as all other clients of the Company. Fees 
arising during the year from such transactions were as follows: Donald Turner £382, Edward Cunningham £613 and Garry Watson £1,515.
22 Financial risk management objectives and policies (Group and Company)
The Group and Company’s financial instruments comprise investments designated at fair value through profit or loss, cash and various 
items such as trade receivables and trade payables, which arise directly from its operations. 
One of the Group’s principal objectives and policies is to achieve income and capital gains through investment in equity shares in UK 
companies that are both listed and unlisted. The majority of the Group’s investments are in unlisted companies, which by their nature 
entail a higher level of risk and lower liquidity than investments in listed companies. The directors aim to limit the risk attached to the 
portfolio as a whole by careful selection and by splitting the portfolio of investments by financing stage and across the technology sector. 
The Group monitors investments carefully and the Board reviews the portfolio with the directors on a regular basis.
Investments in securities expose the Group to certain inherent risks, the most predominant of which are liquidity risk and market price 
risk. The Board reviews and agrees policies for managing each of these risks which are summarised below: 
Credit risk
The Group has no significant concentration of credit risk.
interest rate risk
The Group finances its operations through equity funding as opposed to debt and therefore minimises its exposure to interest rate risks. 
The Group’s financial instruments are non-interest bearing, the only exception being the cash balances held by the Group, which attract 
variable interest rates determined with reference to the bank interest rate. 
interest rate risk profile of financial assets and liabilities
The interest rate risk profile of the financial assets and liabilities of the Group is as follows: 
Year ended 31 March 2007: 
fixed rate 
 Within 1 year 1 – 2 years 2 – 3 years 3 – 4 years 4 – 5 years Total
 £ £ £ £ £ £
Loan notes – 40,000 – – – 40,000
      
floating rate
 Within 1 year 1 – 2 years 2 – 3 years 3 – 4 years 4 – 5 years Total
 £ £ £ £ £ £
Cash 6,481,751 – – – – 6,481,751
      
non-interest bearing
 Within 1 year 1 – 2 years 2 – 3 years 3 – 4 years 4 – 5 years Total
 £ £ £ £ £ £
Trade and other receivables 61,602 – – – – 61,602
Trade and other payables (242,370) – – – – (242,370)
note S to the finan Cial Statement S
CONTINUED
44 Year ended 31 March 2008: 
fixed rate
  Within 1 year 1 – 2 years 2 – 3 years 3 – 4 years 4 – 5 years Total
  £ £ £ £ £ £
Loan notes 40,000 114,074 – – – 154,074
floating rate 
  Within 1 year 1 – 2 years 2 – 3 years 3 – 4 years 4 – 5 years Total
  £ £ £ £ £ £
Cash 4,808,870 – – – – 4,808,870
non-interest bearing 
  Within 1 year 1 – 2 years 2 – 3 years 3 – 4 years 4 – 5 years Total
  £ £ £ £ £ £
Trade and other receivables 442,879 – – – – 442,879
Deferred consideration (309,717) – – – – (309,717)
Trade and other payables (198,712) – – – – (198,712)
Interest on financial instruments classified as fixed rate is fixed until the maturity of the instrument. The other financial instruments of the 
Group are non-interest bearing and therefore are not subject to interest rate risk.
It is estimated that the maximum effect of a one percentage point (100 basis points) fall in interest rates to which the Group is exposed 
would be a reduction in profit before tax for the 12 months to 31 March 2008 of £47,414 (2007: £5,626).
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of 
between one day and nine months, depending on the immediate cash requirements of the Group, and earn interest at the respective 
short-term deposit rates. The fair value of cash and cash equivalents at 31 March 2008 is £4,808,870 (2007: £6,481,751).
The Group only deposits cash with major banks of high quality credit standing.
liquidity risk
The Group strategy is to invest principally in unquoted investments. Such investments are relatively illiquid and the Group manages this  
by holding cash reserves. 
market price risk
The Group is exposed to market price risk due to its investment portfolio. The performance of the Group is partly dependent on the 
market price of the investments within the portfolio. The Group monitors its exposure to market risk through sensitivity analysis. It is 
estimated that the maximum effect of a 10 per cent fall in market prices to which the Group is exposed would be a reduction in profit 
before tax for the 12 months to 31 March 2008 of £14,672 (2007: £17,341).
foreign currency risk
The Group is not exposed to foreign currency risk as all of its financial instruments are denominated in sterling.  
fair values of financial assets 
The fair value of cash deposits is not materially different from book value. The fair values of quoted investments are based on open market 
values and are carried at this amount according to the Group’s accounting policy. The directors have estimated the fair value of unlisted 
investments in accordance with the International Private Equity and Venture Capital Guidelines.
Braveheart Investment Group plc Annual Report & Accounts 2008 45 noti Ce of annual G eneral meetin G
BRAVEHEART INVESTMENT GROUP PLC (‘THE COMPANY’)
(REGISTERED IN SCOTLAND WITH COMPANY NUMBER: SC247376)
THIS Do CuMENT IS IMPo RTANT AND REQuIRES YouR IMMEDIATE ATTENTIo N. If you are in any doubt as to the action to 
be taken, you should consult your stockbroker, bank manager, solicitor, accountant or other professional adviser authorised 
under the Financial Services and Markets Act 2000. This document does not seek to address your personal tax position and 
you are therefore recommended to seek independent taxation advice.
If you have sold or transferred all your holding(s) of Ordinary Shares in the Company, please hand this letter and the accompanying Annual 
Report and Accounts and Form of Proxy immediately to the purchaser or transferee or to the stockbroker, bank or other professional 
adviser through whom the sale or transfer was effected for transmission to the purchaser or the transferee.
NOTICE IS HEREBY GIVEN that an Annual General Meeting of the Company will be held at The Centenary Suite, St Johnstone Football 
Club, McDiarmid Park, Crieff Road, Perth, PH1 2SJ on Wednesday 10 September 2008 at 12.30 pm to consider the following resolutions: 
o rdinary Business 
To consider and, if thought fit, pass the following resolutions which will be proposed as Ordinary Resolutions of the Company:
resolution 1
THAT the audited accounts of the Company for the financial year ended 31 March 2008 and the reports of the directors and auditor 
thereon, be received;
Explanation of Resolution 1: The directors are required by law to present to the shareholders of the Company at a general meeting the 
audited accounts of the Company for the financial year ended 31 March 2008 and the reports of the directors and auditor thereon.  
The report of directors and the audited accounts have been approved by the directors, and the report of the auditor has been approved 
by the auditor. A copy of each of these documents may be found in the annual report of the Company.
resolution 2
THAT Ernst & Young LLP be re-appointed as auditor of the Company to hold office until the conclusion of the next general meeting of the 
Company before which audited accounts are laid;
Explanation of Resolution 2: The auditor is responsible for examining the annual accounts of the Company and forming an opinion as to 
whether or not they give a true and fair view of its results and financial position. It is a requirement of law that the Company appoints an 
auditor at each meeting at which accounts are presented to its shareholders, such appointment to continue until the next meeting at 
which accounts are presented.
resolution 3
THAT the directors be authorised to determine the remuneration of the auditor; 
Explanation of Resolution 3: The resolution gives the directors of the Company the authority to determine the remuneration paid to the 
auditor for the next financial year. The amount of the remuneration for the next financial year will be disclosed in the next audited 
accounts of the Company.
resolution 4
THAT Edward Brandwood Cunningham, who retires by rotation under article 107.1 of the Company’s Articles of Association, be re-elected 
as a director of the Company;
Explanation of Resolution 4: Edward Brandwood Cunningham, a director of the Company, is retiring by rotation pursuant to the 
requirements of the Company’s Articles of Association and is making himself available for re-election. Biographical details for Mr 
Cunningham are shown on page 15 of the annual report.
resolution 5
THAT Jeremy Hugh Delmar-Morgan be re-elected as a director of the Company, having been appointed by the Board since the last 
Annual General Meeting;
Explanation of Resolution 5: Jeremy Hugh Delmar-Morgan was elected a director of the Company by the Board on 3 June 2008 and 
pursuant to the requirements of the Company’s Articles of Association is making himself available for re-election. Biographical details for 
Mr Delmar-Morgan are shown on page 15 of the annual report.
46 Special Business 
To consider and, if thought fit, pass the following resolutions 6 to 7 to be proposed as Special Resolutions of the Company:
resolution 6
THAT the Articles of Association of the Company be amended by the insertion of the following as a new Article 101.1:
 ‘ 101.1 Subject to the provisions of the Act and as contemplated by section 175 of the Companies Act 2006, the directors may 
authorise, in such manner and on such terms and subject to such limits and conditions as they see fit, any matter in which a director 
has, or can have, a direct or indirect interest which conflicts, or possibly may conflict, with the interests of the Company. The director 
concerned shall not vote on (or if he does vote, his vote shall not be counted), or be counted as part of the quorum in relation to, any 
resolution of the directors concerning any such matter. This Article does not apply to a conflict of interest arising in respect of a 
transaction or arrangement with the Company. For the purpose of this Article 101.1, a conflict of interest includes a conflict of 
interest and duty and a conflict of duties’
and by amending the numbering of the remainder of article 101 (and any references thereto in the Articles) accordingly; and by the 
deletion of ‘101.3’ in the first sentence of Article 101.2 (as renumbered) and the insertion of ‘101.4, and further provided that the 
directors have authorised the matter pursuant to Article 101.1’ in its place; and by the insertion of ‘Subject to the provisions of Article 
101.1,’ at the beginning of Article 101.3 (as renumbered).
Explanation of Resolution 6: This Resolution is being proposed in light of new provisions in relation to directors’ conflicts of interest which 
are to be introduced by the Companies 2006 Act (the ‘2006 Act’) with effect from 1 October 2008. 
The 2006 Act contains a general statement of directors’ duties which largely codifies the previous law but with some changes. Under the 
2006 Act, a director will be required to avoid situations in which he has, or can have, a direct or indirect interest that conflicts, or may 
possibly conflict, with a company’s interests. It is arguable that this requirement is broader than the existing common law duty to avoid 
conflicts of interest. It may, for example, apply if a director becomes a director of another company where there is no immediate conflict 
of interest but there is the possibility of future conflicts.
The 2006 Act will, however, permit the directors of a public company to authorise a director’s conflict or potential conflict of interest 
provided that the company’s constitution includes provision enabling the directors to give such authorisation. Under the previous law, 
only shareholders could approve a conflict of interest.
Resolution 6 is therefore being proposed to amend the Company’s Articles to include such provision. If the amendment is not made then 
when the sections of the 2006 Act dealing with conflicts of interest come into force, expected to be on 1 October 2008, the Company 
may be required to seek shareholder approval every time there is a situation where a director has an interest which may conflict with the 
Company’s interests. This is not considered to be practical. 
There are safeguards in the 2006 Act which will apply when directors decide whether to authorise a conflict or potential conflict of 
interest. Firstly, only independent directors (i.e. those who have no interest in the matter being considered) will be able to take the 
decision and, secondly, in taking the decision, the directors will have to act in a way they consider, in good faith, will be most likely to 
promote the Company’s success for the benefit of shareholders as a whole. The directors will also be able to impose limits or conditions 
when giving authorisation if they think this is appropriate. 
The directors would report to shareholders on the Board’s authorisation of conflicts of interest on an annual basis.
resolution 7
THAT the share premium account of the Company be reduced by £7,008,838.
Explanation of Resolution 7: Currently the Company has no distributable reserves and is accordingly unable to pay dividends to shareholders. 
Resolution 7 is being proposed by the Board with the aim, as a result of the reduction in capital, of converting the share premium account 
of the Company, which is undistributable, to a distributable reserve. If approved by shareholders, the reduction of capital will also need to 
be sanctioned by the Court. If the resolution is passed and the reduction of capital is sanctioned by the Court, the Company may use the 
distributable reserves created by the reduction to commence payment of dividends to shareholders in due course. 
BY ORDER OF THE BOARD Registered office:
Carolyn Smith The Cherrybank Centre
Company Secretary Cherrybank Gardens
18 August 2008 Perth PH2 0PF
Braveheart Investment Group plc Annual Report & Accounts 2008 47 noti Ce of annual G eneral meetin G
CONTINUED
Notes:
1.  A member entitled to attend and vote at the Annual General Meeting (the ‘Meeting’) is entitled to appoint one or more proxies to exercise all 
or any of his rights to attend, vote and speak instead of him. A proxy need not be a member of the Company. You may appoint more than 
one proxy provided each proxy is appointed to exercise rights attached to different shares. You may not appoint more than one proxy to 
exercise the rights attached to any one share.
2.  To be valid, a form of proxy (other than an electronic communication appointing a proxy) together with the power of attorney or other 
authority (if any) under which it is signed (or a copy of such authority certified notarially) must be lodged at the office of the Company’s 
registrars, Capita Registrars, Proxy Department, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU by 12.30 pm on 8 September 
2008, or not less than 48 hours before the time appointed for holding any adjourned meeting. 
3.  Pursuant to Regulation 41 of the Uncertificated Securities Regulation 2001, the Company has specified that only those shareholders registered 
in the register of members of the Company as at close of business on 8 September 2008 or, in the event that this meeting is adjourned, in the 
register of members at close of business two days before the time of any adjourned meeting, will be entitled to vote, or to appoint one or 
more proxies to vote on their behalf, at this meeting in respect of the number of shares registered in their names at that time. Changes to 
entries on the register of members after close of business on 8 September 2008 or, in the event that this meeting is adjourned, in the register 
of members at close of business two days before the time of any adjourned meeting, shall be disregarded in determining the rights of any 
person to attend or vote at the meeting. 
4.  Completion and return of a form of proxy will not prevent a member from attending the meeting and voting in person should he wish to do so. 
5.  CREST members who wish to appoint a proxy or proxies by utilising the CREST electronic proxy appointment service may do so for the 
Meeting and any adjournment(s) thereof by utilising the procedures described in the CREST Manual. CREST personal members or other 
CREST sponsored members, and those CREST members who have appointed a voting service provider(s), should refer to their CREST sponsor 
or voting service provider(s), who will be able to take the appropriate action on their behalf.
6.  In order for a proxy appointment made by means of CREST to be valid, the appropriate CREST message (a ‘CREST Proxy Instruction’) must be 
properly authenticated in accordance with Euroclear UK & Ireland Limited’s (‘EUI’) specifications and must contain the information required 
for such instructions, as described in the CREST Manual. The message, regardless of whether it relates to the appointment of a proxy or to an 
amendment to the instruction given to a previously appointed proxy must, in order to be valid, be transmitted so as to be received by the 
issuer’s agent (ID RA10) by 12.30 pm on 8 September 2008. For this purpose, the time of receipt will be taken to be the time (as determined 
by the timestamp applied to the message by the CREST Applications Host) from which the issuer’s agent is able to retrieve the message by 
enquiry to CREST in the manner prescribed by CREST.
7.  CREST members and, where applicable, their CREST sponsors or voting service providers should note that EUI does not make available special 
procedures in CREST for any particular messages. Normal system timings and limitations will therefore apply in relation to the input of CREST 
Proxy Instructions. It is therefore the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST personal 
member or sponsored member or has appointed a voting service provider(s), to procure that his CREST sponsor or voting service provider(s) 
take(s)) such action as shall be necessary to ensure that a message is transmitted by means of the CREST system by any particular time. In this 
connection, CREST members and, where applicable, their CREST sponsors or voting service providers are referred, in particular, to those 
sections of the CREST Manual concerning practical limitations of the CREST system and timings.
8.  The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5) (a) of the Uncertificated 
Securities Regulations 2001.
9.  In order to facilitate voting by corporate representatives at the meeting, arrangements will be put in place at the meeting so that (i) if a 
corporate shareholder has appointed the chairman of the meeting as its corporate representative to vote on a poll in accordance with the 
directions of all the other corporate representatives for that shareholder at the meeting, then on a poll those corporate representatives will 
give voting directions to the chairman and the chairman will vote (or withhold a vote) as corporate representative in accordance with those 
directions; and (ii) if more than one corporate representative for the same corporate shareholder attends the meeting but the corporate 
shareholder has not appointed the chairman of the meeting as its corporate representative, a designated corporate representative will be 
nominated, from those corporate representatives who attend, who will vote on a poll and the other corporate representatives will give voting 
directions to that designated corporate representative. Corporate shareholders are referred to the guidance issued by the Institute of 
Chartered Secretaries and Administrators on proxies and corporate representatives (www.icsa.org.uk) for further details of this procedure. 
The guidance includes a sample form of appointment letter if the chairman is being appointed as described in (i) above.
10.  Copies of the existing Articles of Association of the Company and the proposed amended Articles of Association will be available for 
inspection at the Company’s registered office from 18 August 2008 up until and including the date of the meeting, 10 September 2008, 
during normal business hours on any day (Saturdays, Sundays and public holidays excepted) and will also be available at the Registered Office 
for at least 15 minutes before the Meeting until its conclusion.
48 Contents
Braveheart Highlights 1
Braveheart at a Glance 2
Chairman’s Statement 4
Chief Executive Officer’s Report 7
Chief Investment Officer’s Report 10
Board of Directors 14
Directors’ Report 16
Corporate Governance Statement 18
Directors’ Remuneration Report 21
Statement of Directors’ Responsibilities 23
Independent Auditor’s Report 24
Group Income Statement 25
Group Balance Sheet 26
Company Balance Sheet 27
Group Cash Flow Statement 28
Company Cash Flow Statement 29
Statement of Changes in Equity  30
Notes to the Financial Statements 31
Notice of Annual General Meeting 46
Company Information IBC
  providing equity capital to enable companies to achieve 
their ambitions
  offering experienced business people to assist with 
corporate development
  building diversified portfolios for investors and showing 
market leading returns
  working with the academic and business communities to 
deliver economic benefit
Braveheart was founded by a small group of business 
angels who wished to use their skills and experience to 
identify and fund early stage investment opportunities. 
Eleven years later Braveheart has developed into a 
recognised and successful private equity business which 
specialises in the commercialisation of intellectual property. 
A key strength of the business continues to be the assistance 
that its entrepreneurial investors give to the selection of 
investments and the management of the portfolio.
Our business is based on the following principles:
BRAve HeART Inve STmen T GRo UP Pl C
Growth
Support
Service
Partnership
Further information is available on our website: www.braveheart-ventures.co.uk
Garry S Watson
Chairman
Directors Garry Watson OBE CA, Chairman
 (n) (r)
  Geoffrey Thomson, Chief Executive Officer
  Carolyn Smith ACIS, Chief Investment Officer 
  Edward Cunningham CBE FRSE, Senior Non-executive Director
 (a) (n) (r)
  Donald Turner CA, Non-executive Director
 (a)
  Shonaig Macpherson CBE FRSE, Non-executive Director
 (r)
  Kenneth Brown BA CA, Non-executive Director
 (a) (r) 
(appointed 12 September 2007)
  Jeremy Delmar-Morgan MA MSI, Non-executive Director (appointed 3 June 2008)
  (a) Member of Audit and Risk Management Committee
  (n) Member of Nominations Committee
  (r) Member of Remuneration Committee
Secretary Carolyn Smith ACIS
Company registration number SC247376
Registered office The Cherrybank Centre
  Cherrybank Gardens
  Perth
  PH2 0PF
  Telephone +44 (0) 1738 587555 
Website www.braveheart-ventures.co.uk
Advisers Registrar Principal Bankers 
  Capita Registrars Bank of Scotland
  Northern House 110 St Vincent Street 
  Woodsome Park Glasgow
  Fenay Bridge G2 5ER
  Huddersfield
  HD8 0LA
 
  Solicitors  Solicitors
  Semple Fraser LLP Maclay Murray & Spens LLP
  80 George Street Quartermile One 
  Edinburgh 15 Lauriston Place
  EH2 3BU Edinburgh 
    EH3 6EP
  Auditor Nominated Adviser and Broker   
  Ernst & Young LLP  Seymour Pierce Limited
  Ten George Street  20 Old Bailey
  Edinburgh  London 
  EH2 2DZ  EC4M 7EN
  Financial PR
  Tavistock Communications Ltd
  131 Finsbury Pavement
  London
  EC2A 1NT
ComPAny InFoR mATIon www.braveheart-ventures.co.uk
The Cherrybank Centre
Cherrybank Gardens
Perth
PH2 0PF
United Kingdom
mail@braveheart-ventures.co.uk
T: +44 (0)1738 587555
F: +44 (0)1738 587666
Growth
Support
Service
Partnership
Annual Report and Accounts 2008
Braveheart Investment Group Annual Report and Accounts 2008