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ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
ANNUAL REPORT AND ACCOUNTS
for the year ended 31 March 2006
DISTRIBUTION OF TECHNOLOGY… Highlights 1
Acal’s business 2
Global reach 4
Chairman’s statement 6
Chief Executive’s review 8
Finance Director’s review 12
Directors 16
Corporate information 17
Directors’ report 18
Board report on corporate governance 20
Directors’ remuneration report 24
Corporate social responsibility 28
Statement of directors’ responsibilities 29
Report of the auditors – Group 31
Consolidated income statement 32
Consolidated balance sheet 33
Consolidated cash flow statement 34
Consolidated statement of recognised income
and expense 35
Notes to the group financial statements 36
Report of the auditors – Company 70
Company balance sheet 71
Notes to the company financial statements 72
Five year record 77
Notice of annual general meeting 78
Principal locations 80
Acal plc is a leading pan-European value-added distributor
providing specialist design-in sales and marketing services for
international suppliers.
The business provides opportunities for growth, a high return on
capital employed and a positive cashflow. The strategic plan is to
invest cashflow in organic growth and in similar complementary
business opportunities. This will enhance shareholder value and
utilise the skills of the Group, providing career development for
employees and a dynamic organisation to promote better service
for both suppliers and customers.
CONTENTS
Spain
Italy
Finland
Norway
Denmark
Belgium
Netherlands
Germany
UK
ELECTRONIC COMPONENTS
IT PARTS SERVICES
IT SOLUTIONS
Bangalore
Shanghai
Singapore
ASSOCIATE COMPANY OFFICES
Sweden
Taiwan
Hong Kong
Bangkok
Muntinlupa City
Selangor
Johar Bahru
Penang
Shenzhen
Suzhou
WORLDWIDE LOCATIONS
France HIGHLIGHTS
1 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
• Sales of continuing operations up 5.5% at £257m, with growth in all divisions
• EBIT down 13.2% at £9.9m, with the decline almost entirely in the first half,
and a recovery to £5.8m in the second half
• Progress continuing in obtaining new product lines and extending geographic
coverage of existing ones for Electronic Components
• IT Parts Services benefits from developing trend towards outsourcing of parts
procurement and management
• Agreement announced in May 2006 for sale of Air Conditioning and
Refrigeration business for an intitial consideration of £8m
• Total dividends for year maintained at 21.6p per share
* EBIT – Earnings before interest, tax, the Group’s share of profit of associated companies and exceptional items.
** The restatement of the prior year’s figures arises from the adoption of IFRS, the reclassification of the Air
Conditioning and Refrigeration activities as discontinued, in the light of their sale, and the reallocation of central
costs following that reclassification.
2006 2005 2006 2005
£’000 £’000 €’000 €’000
Restated** Restated**
Turnover – continuing operations 257.0 243.7 376.7 357.0
EBIT* – continuing operations 9.9 11.4 14.5 16.7
Profit before tax:
– continuing operations 8.4 9.9 12.3 14.5
– including discontinued operations 9.7 11.1 14.2 16.3
Basic earnings per share:
– continuing operations 19.1p 23.6p €0.28 €0.35
– including discontinued operations 22.3p 26.6p €0.33 €0.39
Dividends per share – relating to period 21.6p 21.6p €0.32 €0.32 ACAL’S BUSINESS
2 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
The Group, which has 17 principal
trading companies, of which ten are
in Continental Europe and seven in
the UK, employs approximately
1,000 people with particularly strong
technical sales and marketing
expertise. These skills have established
a reputation with international
suppliers and customers.
ELECTRONIC COMPONENTS
The only pan-European demand creation distributor
Dedicated demand creation/design-in teams supplying
complementary non-competing products.
Distributing a comprehensive range of electronic
components, differentiates its offering with a strong
focus on demand creation with its skilled technical
workforce. Is able to provide pre and post design
support across Europe and has a strong logistics
infrastructure to satisfy the most demanding 
customer requests.
SALES
£104.0m
EBIT
£2.4m ACAL’S BUSINESS CONTINUED
3 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
IT SOLUTIONS
Europe’s leading niche IT solutions distributor
Acal IT takes pride in supplying best of breed IT
products accompanied by high standards of support.
Acal IT consists of Headway Technology, Europe’s
premier specialist distributor of document management
products, Acal Storage Networking which provides
best of breed storage networking solutions and Acal
Networks which provides a range of network and
security solutions.
IT PARTS SERVICES
Europe’s premier IT parts management company 
Supplies components, subassemblies and services to
field service organisations and maintenance companies.
This group consists of three principal operating
companies EAF, CPI and ATM all of which work 
with their customers and suppliers in planning 
spare parts requirements which in turn are managed
from the most suitable locations in order to meet
demanding standards of service.
SALES
£96.1m 
SALES
£56.9m
EBIT
£2.3m 
EBIT
£5.2m GLOBAL REACH
4 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
united kingdom 
£114m
2005
UK
CONTINENTAL EUROPE
REST OF THE WORLD
3%
44%
53%
2%
45%
53%
In the last few years the Group
has developed a presence in the
Far East, including China, through
its associated companies.
GEOGRAPHIC COVERAGE OF SALES 
(continuing operations and 
excluding associates)
2006 5 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
europe
£137m
far east
£86m
(through associates)
rest of the world 
£6m CHAIRMAN’S STATEMENT 
6 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
Acal’s strategy is to continue to
increase its market share and not
rely upon improvement in market
conditions. We believe this strategy
will return Acal to a path of
profitable growth with Electronic
Components and IT Parts Services
as the main contributors.
Having completed my first year as Chairman, I am
pleased to report that following a strategic review, in
which the Board formulated its plan for developing
the business over the medium term, Acal has made
good progress during the second half-year.
On 25 May 2006 Acal began the process of
rationalising the Group and announced the disposal of
its air conditioning and refrigeration business for a
consideration of £8m subject to an adjustment based
upon the net tangible assets at completion. This business
has been treated as discontinued in the accounts. 
Year-on-year sales growth of the continuing
businesses was 5.5% – the second half showing
growth of 7.5% over the corresponding period in 
the prior year – reflecting second half order growth 
of 11% over the first. EBIT for the year fell 13.2% to
£9.9m. However EBIT for the second half at £5.8m
was a significant improvement on the first and down
only 2% on the same period last year. The Group’s
continuing businesses made a 30% return on average
capital employed.
Costs have remained under close scrutiny with further
selective rationalisation of back office/ logistics functions
and continued selective headcount reductions achieved
across all businesses. The company has also prepared
itself for the introduction of RoHS (Restriction of
Hazardous Substances) legislation, which comes into
effect in July 2006, minimising risks to the business.
Profit before taxation of the continuing businesses fell
from £9.9m to £8.4m. 
DIVIDEND
The Board is recommending a final dividend of 14.4p
per share, unchanged from last year, payable to
shareholders on the register at 30 June 2006. Together CHAIRMAN’S STATEMENT CONTINUED
7 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
with the interim dividend of 7.2p it will make a total
of 21.6p for the year, again unchanged from 2005.
CORPORATE GOVERNANCE
Acal continues to strive for high standards of
governance, details of which will be given in the
governance statement included as part of the Annual
Reports & Accounts.
BOARD COMPOSITION
As reported last year, Rhys Williams stood down as a
Non-executive Director on 20 July 2005. At that time,
Eric Barton became Acal’s Senior Independent Director
and Graham Williams became Chairman of the
Remuneration Committee. The Board considers that
as currently constituted and for a Company of Acal’s
size, an appropriate balance of skills is available. For
this reason a replacement for Rhys Williams has not
been sought.
EMPLOYEES
Despite the tough competitive environment in which
Acal continues to trade, the efforts of its hard working
and loyal workforce have been very apparent and
much appreciated by the Board.
THE FUTURE AND STRATEGY
Acal’s Electronic Component activities continued 
to show sales growth in 2006 with a number of
franchise wins during the year in both the UK and
Europe. Our strategy for this business is to continue
to focus on demand creation and extension of the
product range with a view to increasing market share
and consolidating Acal’s position as the only 
pan-European demand creation distributor.
The IT Parts Services business has enjoyed a good year
with a number of contract wins. With service
organisations increasingly outsourcing their parts
management, procurement and logistics to third parties,
we look to build upon our success and attract more
customers to this model. 
We have renamed our IT Products business ‘IT Solutions’
to reflect our marketing philosophy of offering
customers business solutions rather than just supplying
hardware. The IT market remains highly competitive
and our emphasis will be upon maintaining margins
and improving profitability coupled with continued
enhancement of the product portfolio. This division
now includes our small medical imaging and diagnostic
equipment business.
Across the Group we will continue to strive for more
effective and efficient back office, logistics and
support functions. 
Acal’s strategy is to continue to increase its market share
and not rely upon improvement in market conditions.
We believe this strategy will return Acal to a path of
profitable growth with Electronic Components and IT
Parts Services as the main contributors.
Richard Moon
Chairman
19 June 2006 CHIEF EXECUTIVE’S REVIEW
INTRODUCTION
The past year has seen an increase in sales in all
divisions and for the Company as a whole, up from
£260.7m to £275.4m with EBIT down from £12.6m
to £11.2m. The continuing businesses increased sales
5.5% from £243.7m to £257.0m with EBIT down
from £11.4m to £9.9m. Growth in sales came in the
second half of the year which in total was 15% up on
the first half, reflecting the execution of our plans to
develop major differentiation between Acal and others
in our markets: in Electronic Components and IT
Solutions we have added a number of new world
class suppliers, and in IT Parts Services we have
extended our capability to manage outsourced
supplies of IT parts and services.
The reduction in EBIT results primarily from increased
reorganisation costs, a bad debt and inventory
obsolescence arising from the RoHS Directive,
amounting in aggregate to £1.7m.
We have begun the process of rationalising the Group
with the sale of our Air Conditioning and Refrigeration
Components division announced in May.
PERFORMANCE REVIEW TABLE
The performance of Acal’s divisions in each of the years ended 31 March 2006 and 2005 is set out below:
2006 2005
(restated)**
Sales EBIT* Sales EBIT
as % as % as % as %
£m of Group £m of Sales £m of Group £m of Sales
Electronic
Components 104.0 41% 2.4 2.3% 100.1 41% 3.4 3.4%
IT Parts Services 56.9 22% 5.2 9.1% 51.3 21% 4.6 9.0%
IT Solutions 96.1 37% 2.3 2.4% 92.3 38% 3.4 3.7%
257.0 100% 9.9 3.9% 243.7 100% 11.4 4.7%
* EBIT = Earnings before interest, tax, the Group’s share of profit of associates and exceptional items, stated after full
allocation of central costs.
**The restatement of the prior year’s figures arises from the adoption of International Financial Reporting Standards, the 
reclassification of the Air Conditioning and Refrigeration activities as discontinued, in the light of their sale, and the
reallocation of central costs following that reclassification.
8 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
Growth in sales came in the
second half of the year which in
total was 15% up on the first
half, reflecting the execution of
our plans to develop major
differentiation between Acal 
and others in our markets.  CHIEF EXECUTIVE’S REVIEW CONTINUED
9 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
ELECTRONIC COMPONENTS 
The only pan-European demand creation distributor
The Electronic Components Division, our largest,
continues to develop and grow with sales up 3.9%
from £100.1m to £104.0m but a 29% reduction in
EBIT from £3.4m to £2.4m. EBIT was affected by a
charge of £1.2m, £0.6m by way of RoHS stock
provision and £0.6m in increased reorganisation costs.
The sales growth was primarily from our technology
products which comprise semiconductors, power
components, system components and microwave and
wireless products. Concentration in this area has led
to Acal being appointed by a number of world class
manufacturers, including Actel, Linear Technology,
Microchip and Vicor, as their partner to develop sales
in many European countries. It has also put us in the
unique position of being the leading demand creation
distributor in Europe.
With an increasing number of suppliers working with
Acal across Europe we have commenced centralising
our back office and logistics facilities in order to
improve efficiency and reduce our cost base. We are
however increasing our customer-facing resources to
cater for the enlarged product portfolio and growing
customer base.
IT PARTS SERVICES (ITPS)
Europe’s premier IT parts management company
IT Parts Services had an excellent year overall with
sales rising 10.9% from £51.3m to £56.9m and EBIT
13% from £4.6m to £5.2m. The growth came from
HELP FOR FARMERS
Cows are sensitive, the correct breeding time can
be limited to a matter of hours and pinpointing it
can bring significant financial gain to the modern
farmer. An activity meter, developed by a world-
leading manufacturer of agricultural equipment in
Sweden, has a built-in low-cost radio transmitter
designed in and supplied by ACAL AB, which
facilitates the transmission of this crucial
information from the cow to the farmer.
DEEP IN SPACE
A space probe’s ten year mission is to land on 
a comet in outer space and to analyse samples
from its surface. A resistive heater supplied by 
Acal Radiatron plays a key role in the technology
whereby the controlled release of helium forces
matter from the comet into the instrument used
for its analysis. The data collected will provide vital
clues as to the origin of solar system materials. CHIEF EXECUTIVE’S REVIEW CONTINUED
10 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
ATM Parts and Computer Parts International which
were acquired in 2002 and 2003 respectively. The
major areas of expansion for these businesses were
largely, as anticipated, the introduction of new
product in ATM and CPI’s success in attracting more
service organisations to outsource procurement and
supply of IT parts – a capability that has made ITPS
‘Europe’s premier IT Parts Management Company’.
IT SOLUTIONS
Europe’s niche IT solutions distributor
Although we have succeeded in growing sales 4.1%
from £92.3m to £96.1m, this has been the most
challenging of our businesses. EBIT has declined 32%
from £3.4m to £2.3m, having been affected by a £0.2m
RoHS stock provision and a £0.3m bad debt provision.
CASH IN HAND
ATM Parts Company is supplying over 1,000 
state of the art ATM monitors for a leading UK
high street bank. The monitor achieves brightness
and clarity of the highest quality and an 
extended life by use of a viewable sensor which
adjusts brightness as ambient light changes.
Manufactured in the Far East but designed-in by
Acal the monitor will also enable the bank to take
advantage of new Windows based applications.
In Electronic Components and 
IT Solutions we have added a
number of new world class
suppliers, and in IT Parts Services
we have extended our capability
to manage outsourced supplies 
of IT parts and services. Profit was also reduced by pressure on both price and
margin in our storage networking products where unit
prices have come down by as much as 30% year-on-
year and although now stabilised, show little prospect
of improvement in the core host bus adapter market.
However, new products for this market from CISCO,
who have appointed Acal as an exclusive distributor
for their MDS family of products in Europe, recognises
our competence and provides an excellent opportunity
to return to growth.
Headway, our Document Management and Imaging
Product group and the Networking and Security group
achieved growth in sales and the latter in particular
turned in an excellent performance meeting our
expectations. Both also have new product offerings
although it is too early to quantify the timing and
benefit in revenue and margin. 
Vertec, our small Medical Instrumentation business,
which was previously included in Industrial Controls, 
is now allocated to IT Solutions as a result of the
discontinued classification of the AC&R activities
which were the dominant part of Industrial Controls.
AIR CONDITIONING AND REFRIGERATION 
As previously mentioned this business is being sold to
our major supplier, Parker Hannifin Corporation, and 
I would like to thank all those who will be leaving us
and wish them all every success in the future. We had
got to know Parker well since 2004 when they acquired
Sporlan Valve Co. and I have no doubt that with their
breadth of product capability there will be ample scope
for further successes. 
ACAL INFRASTRUCTURE
Continuing consolidation and centralisation of many
‘back office’ functions of our Electronic Components
and IT Solutions Divisions has resulted in considerable
change to our own IT and logistic processes during
the past year. I am pleased to report that the changes
have increased our efficiency and customer support
without any disruption to the service that we provide
to our customers.
ACAL PEOPLE
The last three years have seen considerable change in
the markets in which we operate and it is to the credit
of large numbers of Acal people that we are now
successfully executing the strategy which has been
developed. I take this opportunity to thank them all.
Tony Laughton
Chief Executive
19 June 2006
CHIEF EXECUTIVE’S REVIEW CONTINUED
11 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
THE RIGHT PATH
In providing geographic information for Great
Britain, Ordinance Survey has made ever greater
use of digital storage. The protection of these vital
assets required a disaster recovery strategy as well
as the ability to replicate digital data held at
headquarters at a remote location. Acal IT
supported Ordinance Survey, Kashya and Cisco in
successfully evaluating the technology to achieve
this solution and subsequently supplied the chosen
Kashya hardware. RESULTS FOR THE YEAR
Acal adopted International Financial Reporting
Standards – IFRS – for the first time during the year
ended 31 March 2006. The prior year’s figures have
been restated to reflect this change as well as the
reclassification of the Group’s Air Conditioning and
Refrigeration business as discontinued in the light of 
its sale, which was announced on 25 May 2006, 
and the reallocation of central costs following 
this reclassification.
Sales from continuing activities increased from
£243.7m in 2005 to £257.0m in the year ended 
31 March 2006, an overall increase of 5.5%, with
each of the Group’s divisions showing sales growth 
as compared to the prior year. Earnings before
interest, tax, the Group’s share of profit of associated
companies and exceptional items (“EBIT”) reduced
from £11.4m in 2005 to £9.9m in the year ended 
31 March 2006, an overall decline of 13.2%. This
decline arose from a reduction in the average gross
margin and an increase in net operating expenses as
explained below.
The table below shows the Group’s performance in
the first and second halves each of the last two years.
This shows that the second half of the year to 
31 March 2006 saw a significant recovery which 
was achieved by growing product coverage and
increasing market share, against a generally difficult
market background.
FINANCE DIRECTOR’S REVIEW
12 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
Acal adopted International
Financial Reporting Standards –
IFRS – for the first time during
the year ended 31 March 2006.
GROUP’S PERFORMANCE
Group’s performance in the first and second halves each of the last two years:
Year ended 31 March
2006 2005 (restated)
Continuing business 1st half 2nd half Total 1st half 2nd half Total
£m £m £m £m £m £m
Sales 119.8 137.2 257.0 116.1 127.6 243.7
EBIT 4.1 5.8 9.9 5.5 5.9 11.4 FINANCE DIRECTOR’S REVIEW CONTINUED
13 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
Overall the average gross margin during the year to
31 March 2006 was 25.3% (2005: 26.7%). The main
reasons for this decline were:
• A higher level of stock provisions, in particular
provisions of £0.8m in connectionwith the RoHS
(Restriction of Hazardous Substances) Directive.
• The continuing margin pressure in the Group’s 
IT Solutions business, particularly in relation 
to Storage Area Networking products.
• The changing ‘mix’ of sales in the Electronic
Components business which has seen significant
growth in sales of specialist semiconductor
products and a reduction, in line with the general
market, in sales of higher margin passive and
electromechanical components.
Net operating expenses of the Group’s continuing
business, excluding exceptional items, were £55.2m
for the year ended 31 March 2006 (2005: £53.8m).
The major factors contributing to the change were an
increase of £0.6m in redundancy and reorganisation
costs as well as a provision of £0.3m against a
receivable. If these two specific factors are excluded
the increase was less than 1%. The average number
of employees working in the Group’s continuing
businesses during the year to 31 March 2006 was
similar to that in the previous year at 954 (2005: 955).
During this period Acal has continued to invest in
additional resources to support the strategy of
growing its specialist semiconductor product coverage
and the winning of new customers in the IT Parts
Services business.
There were two exceptional items arising during the
year to 31 March 2006: a profit of £0.6m on the sale
of an investment and a cost of £0.8m incurred in
withdrawing from a part of the IT Solutions business.
This activity contributed £2.7m to the sales of the IT
Solutions business during the year with no material
contribution to profit.
The year under review saw Sterling, on average,
marginally (0.1%) stronger against the Euro and 3.9%
weaker against the US Dollar as compared to the prior
year. Accordingly exchange rates had an insignificant
effect on the Group’s sales and profits for the year to
31 March 2006 when compared to the prior year.
Acal’s main associated company is Westech, which 
has its head office in Singapore and which distributes
electronic components throughout the Far East excluding
Japan. Its sales grew from S$119m (approximately
£38.5m) for the year ended 31 March 2005 to S$255m
(approximately £86.3m). A significant proportion of
this increase in sales related to lower margin fulfilment
business and therefore the percentage growth in profits
was lower. This, together with the sale of the Group’s
interest in its South African associate towards the end
of the prior year, led to Acal’s share of profits of
associated companies, which under IFRS is reported
after tax, being unchanged at £0.4m.
Net interest cost for the year was £1.6m (2005: £1.7m)
before IAS19 financing cost of £0.1m (2005: £0.2m),
reflecting the slightly lower average level of debt and
slightly higher interest rates during the year. The net
interest cost was covered 6.2 times (2005: 6.7 times)
by operating profit (before exceptional items) from
continuing activities. FINANCE DIRECTOR’S REVIEW CONTINUED
14 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
During this period Acal has
continued to invest in
additional resources to support
the strategy of growing its
specialist semiconductor
product coverage and the
winning of new customers in
the IT Parts Services business.
The Group’s effective tax rate for the year to 
31 March 2006 was 33.8% (2005: 34.7%) when
calculated on profit before taxation excluding the
Group’s share of post tax profit from associates.
Earnings per share for the year to 31 March 2006
were 22.3p (2005: 26.6p).
The interim and proposed final ordinary dividends for
the year will absorb £5.7m (2005: £5.7m) and are
covered 1.05 times (2005: 1.23 times).
WORKING CAPITAL AND BALANCE SHEET
The Group places particular emphasis on the
management of working capital. For this purpose
Acal uses a model which is based on comparing each
item of trading assets to the three-month moving
average of sales (TMMA). The table below shows the
target model and how the actual position compared
with the model.
31 March 31 March
Target 2006 2005
Continuing business TMMA ratio TMMA ratio TMMA ratio
Trading fixed assets 0.5 0.5 0.6
Current assets:
Stock 1.2 0.9 1.1
Debtors 2.3 2.4 2.5
Current liabilities:
Creditors (2.2) (2.4) (2.5)
Tax (0.1) (0.1) (0.1)
Total trading assets 1.7 1.3 1.6
Note: This trading assets model excludes goodwill, investments, 
non-current tax assets, net debt/cash and long term liabilities. FINANCE DIRECTOR’S REVIEW CONTINUED
15 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
The table shows, for example, that our target is 
for stock to represent 1.2 months of sales and the
actual level of stock at 31 March 2006 represented
0.9 months.
The level of working capital at 31 March 2006
benefitted from a number of short-term factors which
were not sustainable and will reverse in the period
after the year-end. This effect is estimated to have
amounted to around £8m to £9m and was reflected
in the abnormally low level of net debt, £6.5m (2005:
£12.3m) at the year end. There was a similar short-term
benefit of around £4m to £5m at 31 March 2005.
The Group’s debt is provided principally by bilateral
bank facilities negotiated centrally in the UK as well
as locally at the operating companies. There are
committed long term facilities of around £25m
available to the Group in addition to short-term facilities
which are used mainly for working capital needs.
Capital expenditure for the year was £2.5m 
(2005: £2.3m) with depreciation and amortisation 
of fixed assets amounting to £3.2m (2005: £3.2m).
An aggregate amount of £0.4m was paid by way 
of the final instalment of the consideration for the
acquisition of Mecodis SA and the purchase of a
small proportion of the minority shareholding in CPI
which is part of the Group’s IT Parts Services business.
It has always been Acal’s policy that its pension
schemes should be of the defined contribution type
so that the extent of the Group’s financial liabilities
can be clearly ascertained. However, when
Sedgemoor Limited, then a listed public company,
was acquired in June 1999, it brought with it certain
defined benefit schemes, the principal one of which
was the Sedgemoor Group Pension Fund (together
“the Sedgemoor Scheme”). Soon after acquisition the
Sedgemoor Scheme was curtailed and all future service
accrual ceased. A triennial actuarial valuation of the
Sedgemoor Scheme was conducted as at 31 March
2006. At that date the gross pension liability under
IAS19 was £9.1m (2005: £6.4m) and net of the
relevant deferred tax it was £6.4m (2005: £4.5m). The
increase in the pension liability has arisen principally
from movements in bond yields and the adoption of
updated mortality assumptions.
Shareholders funds at 31 March 2006 were £69.9m
(2005: £71.3m), the reduction from last year having
arisen from the increase in pension liability explained
above. Net debt at the same date represented 9.3%
of shareholders funds as compared to 17.3% a 
year earlier.
RETURN ON CAPITAL EMPLOYED
Return on average capital employed of the Group’s
continuing businesses (which is calculated using
operating profit before exceptional items and net
assets excluding goodwill but adding back net debt)
was 30% as compared to 32% in the year before. 
Jim Virdee
Finance Director
19 June 2006 DIRECTORS
16 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
R J Moon
Non-executive Chairman
Joined the Board in September 2004 and became
Chairman in April 2005. He was formally a director of
Racal Electronics plc and Chief Executive of Thales plc.
He holds non-executive positions in a number of
companies in the UK and Europe.
A J Laughton 
Chief Executive
Founded his first electronic component business in
1975. This became the forerunner of Centre Industries
which in turn became part of Acal in 1987. Initially he
was Chief Operating Officer, then Managing Director
and has been Chief Executive since August 2001. He is
also Non-executive Chairman of Triage Services Limited.
J S Virdee FCA MA MSc
Finance Director
Was director of Kleinwort Benson Limited (now Dresdner
Kleinwort Wasserstein) until 1989. Before joining Acal
in 1993, he was finance director of Grosvenor Estate
Holdings and Sycamore Taverns Limited.
E A Barton MA
Non-executive Director
Appointed August 2002, was a director of 3i plc
between 1986 and 1999. He has experience as a 
Non-executive Director across a number of public 
and private companies and is currently a 
Non-executive Director of Morse plc. 
G J Williams MBA CA
Non-executive Director
Appointed December 2003, gained his early business
experience in private equity with Charterhouse and
Barclays Private Equity, both in the UK and France. He
was on the Board of Hays plc for 19 years both as a
private and public company.
Audit Committee
E A Barton
G J Williams
Remuneration Committee
G J Williams
E A Barton
R J Moon
Nomination Committee
R J Moon
E A Barton
G J Williams
A J Laughton 17 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
CORPORATE INFORMATION
SECRETARY AND REGISTERED OFFICE
N Rowe MA LLM ACIS
2 Chancellor Court
Occam Road
Surrey Research Park
Guildford
Surrey GU2 7AH
Registered number 2008246
STOCKBROKERS
JPMorgan Cazenove
PRINCIPAL BANKERS
Barclays Bank PLC
Lloyds TSB Bank plc
AUDITORS
Ernst & Young LLP
REGISTRARS
Lloyds TSB Registrars
FINANCIAL CALENDAR 2006/2007
Annual General Meeting 8 August 2006
RESULTS
Interim report for the six Early 
months to 30 September 2006 December 2006
Preliminary announcement 
for the year to 31 March 2007 Early June 2007
Annual Report 2007 Late June 2007
DIVIDEND PAYMENTS
Final dividend 2005/2006 11 August 2006
Interim dividend 2006/2007 Late  
January 2007
Final dividend 2006/2007 Late July 2007
FINANCIAL CONTENTS
Directors’ report 18
Board report on corporate governance 20
Directors’ remuneration report 24
Corporate social responsibility 28
Statement of directors’ responsibilities 29
Report of the auditors – Group 31
Consolidated income statement 32
Consolidated balance sheet 33
Consolidated cash flow statement 34
Consolidated statement of recognised income
and expense 35
Notes to the group financial statements 36
Report of the auditors – Company 70
Company balance sheet 71
Notes to the company financial statements 72
Five year record 77
Notice of annual general meeting 78
Principal locations 80 18 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
DIRECTORS’ REPORT
The Directors submit their Twentieth Annual Report with the audited financial statements of the Company for the year to
31 March 2006.
BUSINESS REVIEW AND PRINCIPAL ACTIVITIES
Acal plc is the parent company of a Group engaged in the sales and marketing of electronic components, IT products and 
IT parts services. There were no significant changes in the Group’s activities in the year under review. On 25 May 2006
however the Group announced the disposal of its Air Conditioning and Refrigeration business to Parker Hannifin
International Corporation for an initial consideration of £8m subject to an adjustment dependent on the net tangible assets
of the business at completion. The directors do not anticipate, at the date of this report, any further major changes in the
company’s activities in the next year. The Group does not undertake any significant research and development activity.
During the year the Group’s turnover on continuing operations increased by 5% over the prior year whilst profit before tax
on continuing operations decreased by 15%. Return on capital employed was 30% as compared to 32% in the previous
year. The balance sheet as at the year-end and the equivalent statement as at 1 April 2005 are shown on page 33. More
detailed analyses of the performance of the Group’s businesses over the year are contained in the Chief Executive’s Review
and Finance Director’s Review on pages 8 to 15.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties affecting the Group are:
a) the state of the markets in which it operates and the competitive pressures within those markets;
b) the strength of relationships with major suppliers and customers and
c) the ability to recruit, retain and motivate key employees.
In developing its strategy and plans Acal takes full account of the need to minimise the impact of the risks associated
with its business.
RESULTS
The results of activities of the Group for the year to 31 March 2006 are set out in detail in the consolidated income
statement on page 32. A review of the results and future prospects is included in the Chairman’s Statement, the Chief
Executive’s Review and the Finance Director’s Review on pages 6 to 15.
The Directors recommend a final dividend of 14.4p per share (2005: 14.4p). The final dividend together with the interim
dividend of 7.2p (2004: 7.2p) makes a total dividend for the year of 21.6p per ordinary share (2005: 21.6p). The total
dividends on ordinary shares will absorb £5,706,000 (2005: £5,706,000).
The directors have taken all steps that they ought to have in order to make themselves aware of any relevant audit
information and to establish that the company’s auditors are aware of that information. As far as the directors are aware
there is no relevant audit information of which the company’s auditors are unaware.
FIXED ASSETS
The Directors are of the opinion that the market value of land is not significantly different from its book value.
DIRECTORS
The current directors of the Company are detailed in the Corporate Governance Report on page 20. Directors’
remuneration, service contracts and interests are disclosed in the Directors’ Remuneration Report on pages 24 to 27.
ISSUE OF SHARES UNDER OPTION SCHEMES 
No shares were issued during the year under the Group’s executive share option scheme.
SUBSTANTIAL SHAREHOLDINGS
As at 19 June 2006 the Company had been notified of the following major shareholdings equal to or in excess of three
per cent of the issued share capital.
Holdings of 
ordinary shares (5p)
Aberforth Smaller Companies Trust plc 2,800,000
Artemis Investment Management Ltd 1,621,631
J P Morgan Fleming Mercantile Investment Trust plc 1,069,507
The Capital Group Companies Inc. 1,046,749
Herald Investment Trust plc 1,042,196
Platinum Investment Trust plc 800,000
Legal & General Investment Management Ltd 793,925
In certain cases the holdings above are for investment management clients of the groups specified. DIRECTORS’ REPORT CONTINUED
DONATIONS
During the year £1,641 (2005: £550) was donated by Group companies for charitable purposes. No contributions 
(2005: £nil) were made for political purposes.
AUDITORS
A resolution is to be proposed at the forthcoming Annual General Meeting for the re-appointment of Ernst & Young LLP
as auditors of the Company.
EMPLOYMENT POLICIES
The Group is committed to the principle of equal opportunity in employment. Employment policies are fair, equitable and
consistent with the skills and abilities of the employees and the needs of the Group’s business. These policies ensure that
everyone is accorded equal opportunity for recruitment, training and promotion. Where an employee becomes disabled
whilst employed by a Group company, every effort is made to allow that person to continue in employment.
It is Group policy to communicate with employees on major matters to encourage them to take an interest in the affairs
of their employing company and the Group. It is the responsibility of each of the Group’s operating companies to develop
effective arrangements in this regard.
ENVIRONMENT
Acal plc recognises the importance of its environmental responsibilities which are more fully stated in the corporate
social responsibility statement detailed on page 28.
SUPPLIER PAYMENTS
The Group makes arrangements for payment of suppliers in the ordinary course of its business, taking into account local
good practice. It is the Group’s policy to adhere to agreed arrangements when goods or services have been delivered
satisfactorily.
USE OF FINANCIAL INSTRUMENTS
A statement in relation to the use of financial instruments by the Group is shown in note 28 to the Accounts on page 57.
SPECIAL BUSINESS AT THE ANNUAL GENERAL MEETING
At the Annual General Meeting to be held on 8 August 2006, a total of three resolutions comprising items of special
business will be proposed:
(a) Resolution 7 would renew the authority for the Company to purchase its own shares. The maximum number of shares
capable of being purchased under the proposed authority is 2,600,000 ordinary shares of 5p each (representing
approximately 10% of the issued share capital of the Company) at a price not exceeding 105% of the average middle
market quotation for an ordinary share derived from the UK Listing Authority’s Daily Official List for the five business
days immediately preceding the day on which the purchase is made and at a price not less than 5p per ordinary share.
Such authority shall expire on the earlier of the next Annual General Meeting of the Company or 15 months from the
passing of the resolution. The Directors have no present intention of exercising this authority. Any authority granted
would only be exercised if the Directors had an expectation that such purchase would result in an increase in earnings
per share and would be in the best interests of shareholders generally.
(b) Resolution 8 would authorise the Directors to issue authorised but unissued share capital of the Company of up to
8,800,000 ordinary shares of 5p each (being approximately 33% of the existing issued ordinary share capital). The
Directors have no present intention of exercising this authority.
(c) Resolution 9 would disapply the pre emption provisions of Section 89 of the Companies Act 1985 to allow the
Directors to allot equity securities up to an aggregate nominal amount of £66,000 (being approximately 5% of the
existing issued ordinary share capital of the Company) for cash otherwise than pro rata to existing shareholders.
By order of the Board 2 Chancellor Court
N Rowe Occam Road
Secretary Surrey Research Park
19 June 2006 Guildford
Surrey GU2 7AH
19 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006 20 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
BOARD REPORT ON CORPORATE GOVERNANCE 
The Acal Group is committed to effective corporate governance and continues to operate principles and procedures that
are appropriate to its business. This statement describes how Acal applies the principles of the revised combined code
(‘the Code’) by considering each of the main headings included within the Code. Except as stated below Acal complied
with all provisions of the Code throughout the year to 31 March 2006.
THE BOARD
Acal is led by a strong and experienced Board with a broad range of business and financial skills. Throughout the year
under review it consisted of Mr R J Moon as Non-Executive Chairman, Mr A J Laughton as Chief Executive, Mr J S Virdee
as Finance Director and two Non-executive Directors. Mr R J Williams retired as a director on 20 July 2005. The size and
composition of the Board is considered to be appropriate to the business at present although this is kept under review
by the Nomination Committee.
The Board operates within a framework of controls used to minimise risks, including a formal schedule of matters
reserved for its decision. These are matters of a material nature and include the determination of the Group’s overall
strategy, the approval of financial statements, dividends, significant accounting policies, annual operating plans,
significant financial matters, major capital expenditure and any litigation of a material nature. The schedule is reviewed
on a regular basis. The Non-executive Directors challenge management proposals where appropriate and carefully
monitor management performance and reporting throughout the year. 
Certain matters are, as detailed below, delegated to the Audit, Remuneration and Nomination committees. The Board
also has a General Purposes committee consisting of any two directors of the Company which has delegated authority
to approve certain defined and routine matters between Board meetings. The Board met formally on seven occasions
during the year to 31 March 2006, with all directors attending all meetings. All directors also attended the meetings of
all Committees on which they serve. 
The Company maintains appropriate Directors and Officers liability insurance.
CHAIRMAN AND CHIEF EXECUTIVE
The Company has both a Chairman and Chief Executive. There is a clear division of responsibilities which has been
agreed by the Board and is available from the Company on request. The Chairman is responsible for running the Board
which includes the operation of the Board’s overall procedures, providing a forum for constructive discussion and
ensuring receipt of clear and timely information. The Chief Executive is responsible for the management of the Group’s
businesses and reporting their progress to the Board. Major decisions have to be made by the Board as a whole, and 
no one individual has unfettered power of discretion. On his appointment as Chairman Mr R J Moon satisfied the
independence criteria specified in the Code. 
BOARD BALANCE AND INDEPENDENCE
The Board now comprises two Executive Directors and, including the Chairman, three Non-executive Directors. 
Each director has a role, and no individual or small group of individuals determines the Board’s decision-making.
No Non-executive Director who served during the year:
• has been an employee of the Group within the last five years;
• has, or has had within the last three years, a material business relationship with the Group;
• receives remuneration other than a director’s fee;
• has close family ties with any of the Group’s advisers, directors or senior employees;
• holds cross-directorships or has significant links with other directors through involvement in 
other companies or bodies; or
• represents a significant shareholder; and
• has served on the Board for more than nine years. 
Mr E A Barton is the Senior Independent Director and is available to shareholders should they have concerns that
cannot be resolved through other channels. 
The Chairman meets with the Non-executive Directors, but without the Executive Directors present, as and when
required. The Non-executive Directors meet when required without the Chairman present and as stated below the
Senior Independent Director leads the process of appraising the Chairman’s performance in conjunction with the other
Non-executive Director.
APPOINTMENTS TO THE BOARD
The Nomination Committee leads the process for ensuring that an appropriate balance of skills is retained on the Board
and appropriate succession planning is in place.
The Nomination Committee is chaired by Mr R J Moon. The Company’s two Non-executive Directors and the Chief
Executive are the other members of the Committee. Mr R J Williams served as a member of the Committee until his
retirement as a director on 20 July 2005. 21 ACAL plc annual report and accounts for the year ended 31 March 2006
BOARD REPORT ON CORPORATE GOVERNANCE CONTINUED
Before any appointment to the Board is considered, a job specification is prepared and agreed by the Nomination
Committee. Unless the appointment is as an Executive Director for which a suitable candidate is available from within
the Group, appropriate executive search or other organisations with databases of candidates are consulted before a
short-list of suitable candidates is produced for agreement by the Nomination Committee. Candidates meet all
members of the Nomination Committee, which then makes recommendations to the Board. All members of the Board
would usually meet with the relevant candidate before an appointment is finally made.
The Nomination Committee met once during the year. On the appointment of Mr R J Moon as Chairman an 
assessment was made of the time commitment expected and Mr Moon’s other significant commitments. Mr Moon
holds non-executive positions with Securistyle Limited, Oxford Bio-Signals Limited, e-San Limited and Software Radio
Technology Limited. 
The terms of reference for the Nomination Committee are available on request.
INFORMATION AND PROFESSIONAL DEVELOPMENT
Papers are circulated well in advance of Board and Committee meetings, and directors are invited to request such
further information as they may require ensuring that proper consideration can be given to all matters. Between
meetings, directors are kept abreast of progress by circulation of monthly reports together with ad hoc meetings and
briefings as and when required. Copies of management committee meetings, press announcements and stockbrokers’
reports to which the Company has access, are also circulated to the Board. A procedure is in place whereby directors
may have access to independent professional advice at the Company’s expense and directors have access to the advice
and services of the Company Secretary. The appointment or removal of the Company Secretary would be a matter for
the Board as a whole. An induction process is in place for any new director joining the Board which would include
meeting with the Company’s senior management and visits to key locations as well as a comprehensive briefing pack. 
PERFORMANCE EVALUATION
During the year the Board repeated the process of evaluating its own performance, together with that of its Committees
and individual directors, including the Chairman. Each director is asked to prepare an appraisal of each of these areas.
The Chairman co-ordinates discussion with individual directors as to their performance and the Senior Independent
Director co-ordinates discussion with the Chairman. The results of the process are then summarised for presentation 
to the Board and areas for improvement identified. These are then discussed by the Board as a whole and any necessary
action taken.
RE-ELECTION OF DIRECTORS 
The Company’s Articles of Association require that one third of the directors retire by rotation each year and seek 
re-election. In addition, any director appointed by the Board must retire and seek re-election at the next Annual General
Meeting. It is Acal’s policy to operate these provisions in a manner which ensures that each director faces re-election at
least once every three years.
At the next Annual General Meeting of the Company, resolutions will be proposed for the election of Mr A J Laughton
and Mr G J Williams. Having taken into account the formal evaluation of their performance, the Board believes that
both make an effective contribution to the Board, demonstrate commitment to their roles and can be recommended 
for re-election. Biographical details are shown on page 16.
THE LEVEL AND MAKE-UP OF DIRECTORS’ REMUNERATION
The level and make-up of directors’ remuneration is set out in the Directors’ Remuneration Report. As this shows, a
proportion of Executive Directors’ remuneration is linked to corporate performance through the Annual Bonus Scheme
and the Executive Share Option Scheme.
PROCEDURE ON BOARD REMUNERATION
The remuneration of the Executive Directors is the responsibility of the Remuneration Committee, which is more fully
described in the Directors’ Remuneration Report. The remuneration of the Non-executive Directors is determined by 
the Non-executive Directors’ Remuneration Committee which consists of the Executive Directors. No director is involved
in deciding his own remuneration.
As stated in the Directors’ Remuneration Report the Non-executive Chairman of the Company is a member of the
Remuneration Committee. It is the view of the Board that given the value of Mr Moon’s experience and the size of 
the company, it is in the best interests of shareholders for him to continue as a member of this Committee.
FINANCIAL REPORTING
The directors have acknowledged in the Statement of Directors’ Responsibilities their responsibility for preparing the
financial statements of the Company and the Group. The Auditors have included in their report a statement of their
responsibilities. The directors are also responsible for the publication of the interim report of the Group which provides
balanced and understandable assessments of the Group’s financial position for the first six months of the year.
Having taken into account the cash flow projections of the Group and the banking facilities available to it, the directors
are satisfied that it is appropriate to prepare the financial statements on a going concern basis. 22 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
BOARD REPORT ON CORPORATE GOVERNANCE CONTINUED
INTERNAL CONTROLS
The Combined Code includes a requirement that the Board reviews the Group’s system of internal controls. This
requirement covers all controls including operational, compliance and risk management as well as financial controls.
Formal guidance on the review of non-financial controls was published by the Institute of Chartered Accountants in
England & Wales in September 1999, following which the Board approved a framework for the implementation of this
guidance. The relevant procedures have been in place throughout the year ended 31 March 2006 and up to the date of
this annual report.
The Board has overall responsibility for the Group’s system of internal controls and regularly reviews the effectiveness 
of the system. Whilst no system of controls can provide absolute assurance against material misstatement or loss, the
Group’s system is designed to provide reasonable assurance that any problems are identified on a timely basis and dealt
with appropriately. In establishing and reviewing the system of internal controls, the Audit Committee, on behalf of the
Board, has regard to the significance of the risks involved, the likelihood of a loss being incurred and the costs of the
relevant controls.
The foundation of the Group’s system of internal controls is the value which it places on the quality and integrity of 
its employees. Its principal components are:
• a clearly defined organisation structure with short and clear reporting lines;
• an ongoing process for the identification, regular review and management of the principal risks and 
issues affecting the business, both at Group and operating levels;
• a regular review of the principal suppliers and customers of the Group, and how each impacts upon 
the Group’s business;
• a comprehensive planning process which starts with a strategic plan and culminates in an annual budget;
• regular forecasting throughout the year of orders, sales, profitability, cash flow and balance sheets;
• regular review of actual performance against budget and forecasts;
• clearly defined procedures for the authorization of major new investments and commitments;
• a requirement for each operating company to maintain a system of internal controls appropriate to its 
own local business environment; and
In addition to the above, and on an annual basis, all operating companies undertook a comprehensive review of the
effectiveness of their internal controls. The results of these reviews are then consolidated before being considered by
the Audit Committee and the Board.
The above procedures encompass Acal plc and its subsidiary companies, but do not include the Group’s associated
undertakings which operate their own individual systems of internal control. Acal endeavours to persuade associated
undertakings to comply with similar standards of internal control to its subsidiaries.
The Board receives regular submissions from management concerning the matters set out above and other matters
relevant to internal controls and the identification, evaluation and management of risk. In addition, the Audit
Committee, on behalf of the Board, has conducted a specific annual review of the effectiveness of the Group’s system
of internal controls and risk management. The Group has embedded internal control and risk management into the
operations of the business and continues to deal with areas of improvement which come to the attention of
management and the Board. The Audit Committee, on behalf of the Board, has further considered the need for
separate internal audit personnel and concluded that this is not necessary at present as the objectives, processes and
responsibilities of such a function have been built into the review, control and monitoring roles of financial managers
who are based at Head Office and are independent of operating entities for which they have responsibility. In addition,
the external auditors report to the Audit Committee on any inconsistencies between what they find in the course of
their work and the internal control system of the Group. 
AUDIT COMMITTEE AND AUDITORS
The Audit Committee is comprised of Mr E A Barton, who is the Chairman, together with Mr G J Williams. 
Mr R J Williams served as a member of the Committee until 20 July 2005. The Finance Director attends meetings
although no Executive Director has a right of attendance. The Board is satisfied that all the members of the Committee
have recent and relevant financial experience. In addition Mr G J Williams is a qualified chartered accountant.
The Committee is responsible for reviewing the scope and results of the audit, the accounting policies and systems of
internal control of the Group as well as the effectiveness and cost-efficiency of the audit. In addition it considers and
monitors the independence and objectivity of the auditors as well as the extent of any non-audit services provided by
the auditors and the need or otherwise for an internal audit function. The interim statement, the preliminary
announcement of results and the annual financial statements are considered by the Audit Committee prior to their
approval by the Board. The Chairman of the Audit Committee maintains direct communication with the external
auditors, independently of the management of the Company. 23 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
BOARD REPORT ON CORPORATE GOVERNANCE CONTINUED
The Audit Committee met on three occasions during the year and its principal activities during the period included:
• a review of the interim and full year results;
• a review of the internal control and risk management systems of the Company;
• a review of the scope and results of the external audit;
• ensuring the continued independence and objectivity of the external auditors, including the understanding 
of the external auditors’ own standards and procedures for maintaining the independence and reviewing the 
level of non-audit services provided by the auditors in order to ensure that these were not significant enough 
to prejudice their independence and objectivity;
• a review of the need for an internal audit function;
• reviewing the performance of the external auditors and making a recommendation as to their re-appointment;
• a review of arrangements whereby staff may raise, in confidence, any concern they may have about possible
improprieties.
Part of at least one meeting a year is held with only representatives from the external auditors’ present providing 
an opportunity for any concerns to be raised without executive management present.
The Chairman of the Audit Committee reports to the Board on any significant matters arising from the activities of 
the Committee.
The only non-audit services provided by Ernst & Young LLP relate to taxation. The Committee has formed the view 
that given the size of the Company and the detailed level of understanding that is required of the Group’s business 
the provision of such services by a third party is inappropriate. As stated above, however, the matter is monitored by 
the Committee to ensure that auditors’ objectivity and independence is not prejudiced.
The Audit Committee has written terms of reference which are available on request.
DIALOGUE WITH INSTITUTIONAL SHAREHOLDERS
The Board believes that it is an important part of its responsibilities to maintain effective and timely communications
with the Company’s shareholders and institutional investors. The Company’s Annual Report includes a statement from
the Chairman, a review by the Chief Executive and a financial review by the Finance Director. At the half year an Interim
Report is published.
Throughout the year regular meetings are held with institutional shareholders as well as stockbroking analysts. These
meetings would include discussion of governance and strategy as required and it is the responsibility of the Chairman 
to ensure that shareholder views are communicated to the Board as a whole. Investor relations information as well as
presentations and news releases are made available on the Company’s website (address: www.acalplc.co.uk). Members
of the Board and the Chairman of the Remuneration and Audit Committees are available at the Annual General
Meeting to answer any questions and throughout the year the Company responds to any questions from shareholders
generally. The Senior Independent Director is available to deal with issues which cannot be resolved through the
Chairman or executive management.
Any feedback received by the Company from meetings with institutional shareholders and stockbroking analysts is
discussed at financial management meetings and the relevant minutes are circulated to the Board. Periodically the
Company’s stockbrokers and public relations advisers follow up meetings held with institutional investors and
stockbroking analysts in order to try and obtain feedback on these meetings which may not have been provided directly
to the Company. The results of such follow-up discussions are circulated to the Board.
ANNUAL GENERAL MEETING
The level of proxy voting together with the number of votes cast for and against each resolution together with
abstentions will be made available at the AGM after voting is completed on a show of hands and will be published 
on the Company’s website. A separate resolution has been presented on each substantially separate issue and the
Chairman of each Board Committee will attend the meeting. Notice of the meeting has been sent to shareholders 
at least 20 working days before the meeting. 24 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
DIRECTORS’ REMUNERATION REPORT
This report has been prepared in accordance with the provisions of Schedule 7A of the Companies Act 1985. It also
meets the relevant requirements of the Listing Rules of the UK Listing Authority and describes how the Board has
applied the principles of Good Governance relating to directors’ remuneration. As required by regulation, a resolution to
approve the report will be proposed at the Annual General Meeting of the Company at which the financial statements
will be approved.
UNAUDITED INFORMATION
Remuneration committee
The Remuneration Committee comprises Mr G J Williams as Chairman of the Committee, Mr E A Barton, and 
Mr R J Moon. Mr R J Williams also served as a member and Chairman of the Committee until he retired as a director 
on 20 July 2005. The Committee determines the remuneration of Executive Directors on behalf of the Board and keeps
remuneration payable to other members of the senior management team under review. The Committee met twice
during the year to 31 March 2006 and its terms of reference are available on request.
The Committee takes advice from external consultants as and when it is deemed necessary, although it did not do so 
in the year under review. It is the Committee’s policy that any consultants that are used do not provide other services 
to the Acal Group.
Remuneration of the Executive Directors centres on ensuring that packages are sufficiently competitive in both fixed and
variable terms to attract, retain and motivate senior management of the right calibre. To achieve this, it is necessary to
provide packages that reflect individual experience and performance as well as taking account of local market practice
and the specific characteristics of the Company. The ability to recruit high quality staff in new and higher technology
areas is critical to the Group’s growth. The four main elements of the remuneration package for Executive Directors and
senior management are:
• Basic annual salary and benefits
• Annual bonus payments (short-term incentives)
• Share Option Incentive Schemes (long-term incentives)
• Pension arrangements
Each of the above is described in detail below.
Executive Directors may accept non-executive appointments outside the Company with the consent of the Board. The
Board requires to be satisfied that the time commitment involved is consistent with the responsibilities of the relevant
Executive Director. Where fees from such appointments are not required to be accounted for to the Company, the
relevant time commitment is taken into account in determining the relevant director’s remuneration.
The remuneration of the Non-executive Directors is determined on behalf of the Board by the Non-executive Directors’
Remuneration Committee. The Committee consists of Mr A J Laughton as Chairman and Mr J S Virdee. Fees paid to
Non-executive Directors are set out in the audited section below.
It is not envisaged that remuneration policy for the year to 31 March 2007 will differ materially from that which applied
during the year under review.
Salaries, fees and benefits
An Executive Director’s basic salary is reviewed by the Committee prior to the beginning of each year and when an
individual changes position or responsibility. In deciding appropriate levels, the Committee considers the role and
responsibilities of the relevant director as well as his experience and performance, and if considered necessary takes
appropriate external advice. In addition to basic salary, the Executive Directors receive certain benefits-in-kind, principally
comprising a car or car allowance, life assurance and private medical insurance.
Fees for Non-executive Directors are determined by the Non-executive Directors’ Remuneration Committee having
regard to fees paid to Non-executive Directors in other UK quoted companies, the time commitment and the
responsibilities of the role. Non-executive Directors cannot participate in any of the Company’s share option schemes.
Short-term incentive arrangements
The Company’s policy is that a substantial proportion of the Executive Directors’ remuneration should be performance-
related. The Committee reviews and determines the financial objectives that must be met before the start of each
financial year.
Whilst the principal long-term measure of shareholder interests is total shareholder return, the Company believes that
for the purposes of determining annual bonuses, account has to be taken of those aspects of trading performance
which senior management can influence by their actions. Thus the annual bonuses depend on specific targets in respect
of return on capital employed, the growth of profits and the quality of profits which is measured by the net margin as a
percentage of sales. The Remuneration Committee has agreed a cap to the aggregate amount that may be paid to the
executive directors by way of annual bonus in any year. This cap is currently fixed at £250,000. Executive share option scheme
The Group operates an approved and an unapproved executive share option scheme, the rules of which are similar in 
all material respects. The grant of options to Executive Directors and senior management is recommended by the
Committee on the basis of their contribution to the Group’s success. The exercise of options is subject to the meeting 
of performance targets set by the Committee. It is Acal’s policy to grant options to employees on a phased and regular
basis and not in one block. However, at certain times, particularly when recruiting new people or to reward major
achievements, it may be necessary to apply the policy flexibly. It is also Acal’s policy not to grant executive share options 
at a discount to market price.
The performance criterion that must be met was determined when the relevant schemes were established, and requires
that the growth in the Company’s earnings per share in any three-year period before exercise must have exceeded the
percentage increase in the Retail Price Index over the same period plus two per cent per annum. This criterion is kept
under review.
The Company does not operate any long-term incentive schemes other than the share option schemes described above.
Pension arrangements
The Executive Directors are members of the Group’s pension scheme, which is a defined contribution scheme. In respect
of these directors, as in the case of all other members of the scheme, the Company makes contributions of one per
cent of pensionable salary plus the amount of the director’s own contribution provided the Company’s contribution
does not exceed 6.5% of pensionable salary. Pensionable salary includes payments made to executive directors under
the annual bonus scheme. Given that the scheme operates on a defined contribution basis and that the Company’s
maximum percentage contribution is relatively low it is considered that the inclusion of bonus payments for pension
purposes, both for directors and employees, is not unreasonable. All members of the scheme are eligible for a further
Company contribution which is not guaranteed and may be paid depending on the performance of the Company. 
No such performance-related contribution has been payable since 31 March 2001. In recognition of long service,
however, special contributions of £10,000 and £8,000 were made by the Company in respect of A J Laughton and 
J S Virdee respectively in the year to 31 March 2006.
Performance graph
The following graph compares the Company’s performance, measured by total shareholder return, and with the
performance of the FTSE mid 250 index also measured by total shareholder return. The FTSE mid 250 index is made 
up of companies in the FTSE 350, excluding those in the FTSE 100 index. Total shareholder return measures share price
growth with dividends deemed to be reinvested gross on the ex-dividend date and the data points are shown using a
moving one-month average. Although Acal plc is not currently a member of the FTSE 250, it is considered to be a
reasonable comparator for the Company.
Total shareholder return for period 1 April 2001 to 31 March 2006
Directors’ contracts
It is the Company’s policy that Executive Directors should have service contracts incorporating a maximum period of one
year’s notice. However, it may be necessary occasionally to apply this policy flexibly and offer longer initial notice periods
to new directors. Any termination payments are not agreed in advance and are determined in accordance with the
director’s contractual rights taking account of the circumstances and the director’s duty to mitigate loss. Mr A J Laughton
also served as Non-executive Chairman of Triage Services Limited in respect of which he received and retained fees 
of £24,000.
25 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
DIRECTORS’ REMUNERATION REPORT CONTINUED
180
170
160
150
140
130
120
110
100
90
80
70
60
ACAL PLC
FTSE 250
2001                2002                     2003                      2004                     2005
TSR Index at 1 04 00 = 100
source: Thomson Datastream 26 ACAL plc annual report and accounts for the year ended 31 March 2006
DIRECTORS’ REMUNERATION REPORT CONTINUED
All Non-executive Directors have specific terms of engagement, which provide for a notice period of no more than six
months and all of which would terminate automatically in the event of the Non-executive Director not being re-elected
by shareholders. 
Directors’ interests
The interests of the directors who served during the year (including family interests) in the shares of the Company were
as follows:
At 31 March 2006 At 31 March 2005
Ordinary shares (5p) fully paid Ordinary shares (5p) fully paid
Beneficial Non-beneficial Beneficial Non-beneficial
A J Laughton 1,500,900 – 1,500,900 –
J S Virdee 105,778 – 105,778 –
R J Moon 10,000 – ––
R J Williams* 2,345 – 2,345 –
G J Williams 1,000 – 1,000 –
E A Barton 1,000 – 1,000 –
* The interests for R J Williams are those at 20 July 2005 his date of retirement as a Director. 
The interests of directors in the shares of the Company at 19 June 2006 are unchanged from those at 31 March 2006.
AUDITED INFORMATION
The total amounts for directors’ remuneration were as follows:
2006 2005
£ £
Fees 193,144 111,259
Salary and benefits 509,217 783,860
Performance-related bonuses 35,760 55,000
Money purchase pension contributions 50,955 65,844
Compensation for loss of office – 155,000
789,076 1,170,963
Details of the remuneration of directors who served during the years ended 31 March 2006 and 31 March 2005 are 
as follows: 
Salary Pensions Compensation 2006 2005
or fees Bonus Benefits contributions for loss of office Total Total
£££££ £ £
Executive directors
J A H Curry ––––– – 230,678
A J Laughton 290,000 22,350 15,297 30,475 – 358,122 346,024
J S Virdee 177,000 13,410 26,920 20,480 – 237,810 223,814
R A Allen ––––– – 259,188
Non-executive directors
R J Moon* 131,000 –––– 131,000 31,250
R J Williams* 9,144 –––– 9,144 27,917
G J Williams 25,000 –––– 25,000 22,917
D Channing-Williams ––––– – 2,925
E A Barton* 28,000 –––– 28,000 26,250
660,144 35,760 42,217 50,955 – 789,076 1,170,963
*The emoluments of Mr R J Williams relate to the period up to his retirement from the Board on 20 July 2005. The fees
in respect of Mr R J Moon and Mr E A Barton are paid to Synergie Business Limited and Lancedale Limited respectively
being companies in which each has a respective interest.
Mr A J Laughton was the highest paid director (both including and excluding pension contributions) in the year ended
31 March 2006 (2005: Mr A J Laughton). No director made any gain on exercise of share options during the year or in
the prior year. 27 ACAL plc annual report and accounts for the year ended 31 March 2006
DIRECTORS’ REMUNERATION REPORT CONTINUED
Movements in the directors’ holding of options under the Acal plc Executive Share Option Scheme during the year were
as follows:
Number Movements Number
held at during the year held at Exercise
Director 1.04.05 Granted Exercised Lapsed 31.03.06 Date of grant price When exercisable
A J Laughton 72,000 – – 72,000 – June 1998 363.5p June 2001 to June 2005
A J Laughton 50,000––– 50,000 July 1999 462.5p July 2002 to July 2006
A J Laughton 50,000––– 50,000 July 2000 517.5p July 2003 to July 2007
A J Laughton 34,000––– 34,000 July 2001 537.5p July 2004 to July 2008
A J Laughton 23,000––– 23,000 June 2002 586.5p June 2005 to June 2009
A J Laughton 20,000––– 20,000 June 2003 525.0p June 2006 to June 2010
A J Laughton 15,000––– 15,000 July 2004 480.0p July 2007 to July 2011
A J Laughton – 15,000 – – 15,000 June 2005 335.0p June 2008 to June 2012
J S Virdee 30,000––– 30,000 July 1999 462.5p July 2002 to July 2006
J S Virdee 35,000––– 35,000 July 2000 517.5p July 2003 to July 2007
J S Virdee 18,000––– 18,000 July 2001 537.5p July 2004 to July 2008
J S Virdee 13,000––– 13,000 June 2002 586.5p June 2005 to June 2009
J S Virdee 12,000––– 12,000 June 2003 525.0p June 2006 to June 2010
J S Virdee 10,000––– 10,000 July 2004 480.0p July 2007 to July 2011
J S Virdee – 10,000 – – 10,000 June 2005 335.0p June 2008 to June 2012
The market price of the shares at 31 March 2006 was 355p and the range during the year ended on that date was
232.5p to 367.5p. 
Mr A J Laughton and Mr J S Virdee each has a service contract with the Acal Group dated 21 March 2002 incorporating
a notice period of one year. Other than their service contracts, no contract of significance to which any member of the
Acal Group is a party and in which a director is or was materially interested, subsisted at the end of, or during the year.
APPROVAL
This Directors’ Remuneration Report has been approved by the Board and signed on its behalf by
N Rowe
Secretary
19 June 2006 28 ACAL plc annual report and accounts for the year ended 31 March 2006
CORPORATE SOCIAL RESPONSIBILITY
While the management of Acal is primarily accountable to its shareholders, in managing the business it takes into
account all stakeholders in Acal including employees, customers and suppliers, as well as the local communities and
environment in which it operates. In a balanced way, without unnecessarily restricting the optimisation of returns, it
endeavours to identify and manage any risks to the value of Acal’s business from social, environmental and ethical
matters, and to take any opportunities presented by a sensible and considerate approach to such matters to enhance
shareholder value. The Board of Acal has adopted policies in relation to corporate social matters, and day-to-day
responsibility for implementation of these policies is delegated to the management of Acal’s operating companies. In
implementing these policies the Group endeavours to ensure that the cost of managing risks is proportionate to their
significance to Acal and its business partners. More specifically, Acal’s policies cover the following:
GENERAL
Management at all levels in the organisation is committed to taking account of its corporate social responsibility in its
actions and endeavours to show due respect for human rights and works to high standards of integrity and ethical
propriety. As a multinational organisation, Acal takes account of cultural differences between the various territories in
which it operates.
EMPLOYEES, HEALTH AND SAFETY
Acal provides equal opportunities to all employees and prospective employees, and does not discriminate on grounds 
of colour, ethnic origin, gender, age, religion, political or other opinion, disability or sexual orientation.
Clear and fair terms of employment as well as a fair and competitive remuneration policy are put in place. Employees
are encouraged to develop their knowledge and skills and to progress their careers to the mutual benefit of themselves
and the companies they work for. It is the responsibility of management to ensure that they comply with all local
regulations including those relating to the employment of underage staff. Local business units are responsible for
developing and implementing effective arrangements for employee communication.
A great deal of importance is attached to the provision of clean, healthy and safe working conditions. In addition to
compliance with all local regulations, Acal promotes working practices which protect the health and safety of its
employees and other persons who come on to its premises. The Group endeavours to protect employees from and does
not tolerate any sexual, physical or mental harassment. Heath and safety matters are kept under regular review by local
management and by the Group management committees.
The Group operates a ‘whistle-blowing’ policy whereby employees may report in confidence any suspected wrongdoing. 
BUSINESS RELATIONSHIPS
All Acal Group members seek to be honest, fair and competitive in their relationships with all customers and suppliers.
Every attempt is made to ensure that products and services are provided to the agreed standards and all reasonable
steps are taken to ensure the safety and quality of the goods and services provided. Payment is made to suppliers in
accordance with the agreed terms, the relevant goods or services having been satisfactorily delivered. It is Acal’s policy
that no one in the Group should offer or accept any bribes or other corrupt payments, engage in any anti-competitive
practices or knowingly be involved in any fraud or money laundering.
So far as it is able to and taking into account local cultural and regulatory differences, Acal encourages organisations and
people with whom it does business to abide by principles of good practice in relation to their corporate social responsibility.
COMMUNITY AND ENVIRONMENT
Each Acal Group company aims to be sensitive to the local community’s cultural, social and economic needs, and seeks
to ensure that its activities do not harm the communities as places to work and live in. The Group seeks to ensure that
its operations do not have a negative impact on the environment. Apart from compliance with all local environmental
regulations, Group companies endeavour to promote the effective management of natural resources and encourage
energy efficiency as well as waste minimisation and recycling where economically viable means of doing so are
available. Although the vast majority of products Acal deals with are non-hazardous, where such products are involved
it minimises the environmental risks by use of appropriate labelling and technical information in conjunction with proper
training and procedures for the handling, storage and disposal of such products. The Group is cognisant of the
Restriction of the Use of Hazardous Substances in Electrical and Electronic Equipment Regulations 2004 and the Waste
Electrical and Electronic Equipment Regulations, and has implemented procedures to achieve compliance with them. 29 ACAL plc annual report and accounts for the year ended 31 March 2006
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
United Kingdom company law requires the Directors to prepare financial statements for each financial year which give 
a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that
period. In preparing those financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, subject to any 
material departures disclosed and explained in the financial statements; and
• use the going concern basis unless it is inappropriate to presume that the Company 
and the Group will continue in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any
time the financial position of the Company and the Group and to enable them to ensure that the financial statements
comply with the Companies Act 1985. They have general responsibility for taking such steps as are reasonably open to
them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities. 30 ACAL plc annual report and accounts for the year ended 31 March 2006
ACAL PLC
GROUP FINANCIAL STATEMENTS
year ended 31 March 2006 REPORT OF THE AUDITORS
INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF ACAL PLC
We have audited the group financial statements of Acal plc for the year ended 31 March 2006 which comprise the Consolidated Income
Statement, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement, the Consolidated Statement of Recognised Income and
Expenses and the related notes 1 to 40. These group financial statements have been prepared under the accounting policies set out therein.
We have reported separately on the parent company financial statements of Acal plc for the year ended 31 March 2006 and on the information
in the Directors’ Remuneration Report that is described as having been audited. 
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 auditors’ report
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company
and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
The directors are responsible for preparing the Annual Report and the group financial statements in accordance with applicable United Kingdom
law and International Financial Reporting Standards (IFRSs) as adopted by the European Union as set out in the Statement of Directors’
Responsibilities.
Our responsibility is to audit the group 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 group financial statements give a true and fair view and whether the group financial statements
have been properly prepared in accordance with the Companies Act 1985 and Article 4 of the IAS Regulation. We also report to you if, in our
opinion, the Directors’ Report is not consistent with the group financial statements, if we have not received all the information and explanations
we require for our audit, or if information specified by law regarding director’s remuneration and other transactions is not disclosed.
We review whether the Corporate Governance Statement reflects the company’s compliance with the nine provisions of the 2003 FRC
Combined Code specified for our review by the Listing Rules of the Financial Services Authority, and we report if it does not. We are not
required to consider whether the board’s statements on internal control cover all risks and controls, or form an opinion on the effectiveness 
of the group’s corporate governance procedures or its risk and control procedures.
We read other information contained in the Annual Report and consider whether it is consistent with the audited group financial statements.
The other information comprises only the Directors’ Report, the Chairman’s Statement, the Chief Executive’s Review, the Finance Director’s
Review and the Board Report on Corporate Governance. We consider the implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the group financial statements. Our responsibilities do not extend to any other information.
BASIS OF AUDIT OPINION
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. 
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the group financial statements. It also
includes an assessment of the significant estimates and judgments made by the directors in the preparation of the group financial statements,
and of whether the accounting policies are appropriate to the group’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 group 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
group financial statements.
OPINION
In our opinion the group financial statements:
• give a true and fair view, in accordance with IFRSs as adopted by the European Union, of the state of the group’s affairs as at 
31 March 2006 and of its profit for the year then ended; and 
• have been properly prepared in accordance with the Companies Act 1985 and Article 4 of the IAS Regulation.
As explained in note 40 to the group financial statements, the group, in addition to complying with its legal obligation to comply with IFRSs
as adopted by the European Union, has also complied with the IFRSs as issued by the International Accounting Standards Board.
In our opinion the group financial statements give a true and fair view, in accordance with IFRSs, of the state of the group’s affairs as at 
31 March 2006 and of its profit for the year then ended.
Ernst & Young LLP
Registered Auditors
London 19 June 2006
Note:
• The maintenance and integrity of the Acal plc website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of
these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially
presented on the website.
• Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
31 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006 32 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
CONSOLIDATED INCOME STATEMENT
for the year to 31 March 2006
2006 2005
notes £m £m
Continuing operations
Revenue 4,5 257.0 243.7
Cost of sales (191.9) (178.5)
Gross profit 65.1 65.2
Selling and distribution costs (31.6) (31.1)
Administrative expenses (23.9) (23.2)
Other operating income 7 0.9 0.5
Other operating expenses (0.8) –
Operating profit 8 9.7 11.4
Analysed between:
Operating profit before exceptional items 5 9.9 11.4
Exceptional items – profit on disposal of investments 6 0.6 –
Exceptional items – product withdrawal costs 6 (0.8) –
Share of post-tax profits from associates 20 0.4 0.4
Finance costs 10 (2.3) (2.5)
Finance revenue 10 0.6 0.6
Profit before tax 8.4 9.9
Analysed between:
Profit before taxation before exceptional items 8.6 9.9
Exceptional items – profit on disposal of investments 6 0.6 –
Exceptional items – product withdrawal costs 6 (0.8) –
Corporation tax expense:
United Kingdom taxation (2.6) (3.1)
Overseas taxation (0.1) (0.2)
11 (2.7) (3.3)
Profit after taxation for the year from continuing operations 5.7 6.6
Discontinued operations
Profit for the year from discontinued operations 12 0.9 0.8
Profit for the year 6.6 7.4
Attributable to:
Equity holders of the parent 6.0 7.0
Minority interests 0.6 0.4
6.6 7.4
Dividends proposed per share in respect of the period 13
Interim 7.2p 7.2p
Final 14.4p 14.4p
Total 21.6p 21.6p
Earnings per share
2006 2005
Continuing Total Continuing Total
note 14 operations operations operations operations
Basic for profit for the year 19.1p 22.3p 23.6p 26.6p
Diluted for profit for the year 19.1p 22.3p 23.6p 26.6p CONSOLIDATED BALANCE SHEET
at 31 March 2006
33 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
2006 2005
notes £m £m
Non-current assets
Property, plant and equipment 16 6.7 6.9
Goodwill 17 48.8 48.7
Intangible assets – software 19 4.8 5.7
Investments in associates 20 4.7 3.9
Other financial assets 21 0.3 2.2
Deferred tax assets 11 4.0 2.1
69.3 69.5
Current assets
Inventories 22 21.4 25.5
Trade and other receivables 23 58.0 55.6
Current tax assets 11 1.7 0.9
Cash and cash equivalents 24 16.9 15.9
98.0 97.9
Current liabilities 
Trade and other payables 30 (58.0) (56.0)
Short-term borrowings 25 (11.2) (8.0)
Current tax liabilities (3.7) (1.9)
Provisions 27 (1.0) (0.7)
(73.9) (66.6)
Net current assets 24.1 31.3
Assets of discontinued operations classified as held for sale 12 6.2 –
Non-current liabilities
Long-term borrowings 25 (12.2) (20.2)
Pension liability 36 (9.1) (6.4)
Deferred tax liabilities 11 (1.8) (1.5)
Provisions 27 (0.7) (0.2)
(23.8) (28.3)
Liabilities of discontinued operations classified as held for sale 12 (4.1) –
Net assets 71.7 72.5
Equity
Share capital 31 1.3 1.3
Share premium account 32 38.0 38.0
Share scheme reserve 32 0.2 0.1
Other reserves 33 1.8 1.1
Retained earnings 32 28.6 30.8
Equity attributable to equity holders of the parent 32 69.9 71.3
Minority interests 32 1.8 1.2
Total equity 32 71.7 72.5
These financial statements were approved by the Board of Directors on 19 June 2006 and signed on its behalf by:
R J Moon J S Virdee
Chairman Finance Director 34 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
CONSOLIDATED CASH FLOW STATEMENT
for the year to 31 March 2006
2006 2005
notes £m £m
Profit for the year
Continuing operations 5.7 6.6
Discontinued operations 0.9 0.8
6.6 7.4
Taxation expense (includes £0.4m (2005: £0.4m) from discontinued operations) 3.1 3.7
Share of results of associates (0.4) (0.4)
Net finance costs 1.7 1.9
Depreciation of property, plant and equipment 2.1 2.3
Amortisation of intangible assets – software 1.1 0.9
Change in provisions 0.7 (0.2)
Gain on disposal of investments (0.6) –
Gain on disposal of property, plant and equipment (0.1) (0.4)
Pension scheme funding (0.7) (0.7)
Equity-settled share-based payment expense 0.1 0.1
Operating cash flows before changes in working capital 13.6 14.6
Decrease/(increase) in inventories 2.1 (1.3)
(Increase)/decrease in trade and other receivables (5.7) 0.6
Increase in trade and other payables 5.9 3.0
Decrease in working capital 2.3 2.3
Cash generated from operations 15.9 16.9
Interest paid (2.1) (2.5)
Income taxes paid (2.9) (3.9)
Net cash flows from operating activities 10.9 10.5
Cash flows from investing activities
Acquisition of subsidiaries (0.4) (2.3)
Proceeds from sale of associate – 0.4
Proceeds from sale of investments 2.5 –
Purchases of property, plant and equipment (2.2) (1.5)
Proceeds from sale of property, plant and equipment 0.3 1.0
Purchase of intangible assets – software (0.3) (0.7)
Interest received 0.6 0.6
Dividends received from associates 0.1 0.3
Net cash inflow/(outflow) from investing activities 0.6 (2.2)
Cash flows from financing activities
Proceeds from issue of ordinary shares – 0.2
Repayments of borrowings (3.1) (0.1)
Dividends paid to company’s shareholders 13 (5.7) (5.6)
Dividends paid to minority interests – (0.1)
Net cash outflow from financing activities (8.8) (5.6)
Net increase in cash and cash equivalents 2.7 2.7
Cash and cash equivalents at 1 April 8.0 5.2
Effect of exchange rate fluctuations 0.1 0.1
Cash and cash equivalents at 31 March 10.8 8.0
Reconciliation to cash and cash equivalents in the balance sheet
Cash and cash equivalents shown above 10.8 8.0
Add back overdrafts 6.1 7.9
Cash and cash equivalents shown within current assets in the balance sheet 24 16.9 15.9 CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
for the year to 31 March 2006
35 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
2006 2005
notes £m £m
Actuarial loss on defined benefit pension scheme 36 (3.4) –
Deferred tax relating to pension scheme 11 0.8 (0.2)
Investments – cumulative fair value adjustments taken to 
income statement on disposal 33 (0.4) –
Foreign currency translation differences 33 0.7 0.3
Net income and expense recognised directly in equity (2.3) 0.1
Profit for the year 6.6 7.4
Total recognised income and expense for the year 4.3 7.5
Restatement for the effects of IAS 32 and 39 (i) 21 0.4 –
Total recognised income and expense 4.7 7.5
Total recognised income and expense for the year attributable to:
Equity holders of the parent 4.1 7.1
Minority interests 0.6 0.4
4.7 7.5
(i) On 1 April 2005, the balance sheet was restated for the effects of IAS 32 and 39. 36 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS
1 AUTHORISATION OF FINANCIAL STATEMENTS AND STATEMENT OF COMPLIANCE WITH IFRS
The consolidated financial statements of Acal plc for the year ended 31 March 2006 were authorised for issue by the
Board of directors on 19 June 2006. Acal plc is a public limited company incorporated and domiciled in England and
Wales. The Company’s ordinary shares are traded on the London Stock Exchange.
The Group’s financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS)
as adopted for use in the European Union and as applied in accordance with the provisions of the Companies Act 1985.
The significant accounting policies adopted by the Group are set out in note 2.
2 ACCOUNTING POLICIES
Basis of preparation
The consolidated financial statements of Acal plc and all its subsidiaries have been prepared in accordance with
International Financial Reporting Standards (IFRS) for the first time and the comparatives have been restated from 
UK Generally Accepted Accounting Practice (UK GAAP) to comply with IFRS, except for IAS 32 ‘Financial Instruments:
Disclosure and Presentation’ and IAS 39 ‘Financial Instruments: Recognition and Measurement’ which have been applied
from 1 April 2005.
The consolidated financial statements are presented in pounds sterling and all values are rounded to the nearest hundred
thousand except when otherwise indicated. 
Basis of consolidation 
The Group’s financial statements consolidate the financial statements of Acal plc, entities controlled by the Company 
(its subsidiaries) and include the Group’s share of the results of associates.
Subsidiaries and associates
A subsidiary is an entity controlled by Acal plc, i.e. the Company has the power to control the entity’s financial and
operating policies. The financial statements of subsidiaries are prepared for the same reporting year as the parent company.
Subsidiaries are consolidated from the date on which control is obtained by the Group and cease to be consolidated from
the date on which the Group no longer retains control. All intra-Group transactions, balances, income and expenses are
eliminated on consolidation.
An associate is an undertaking in which the Group has significant influence and which is neither a subsidiary nor joint
venture. Significant influence is the power and the ability to participate in its financial and operating policy decisions,
but not control or joint control of those decisions.
Acal’s investments in its associates are accounted for under the equity method of accounting. Under the equity method,
investments in associates are carried in the Group balance sheet at cost plus post-acquisition changes in the Group’s
share of net assets of the associate, less distributions received and less any impairment in value. 
Minority interests
Minority interests represent the interests of non-Group shareholders in subsidiaries not wholly owned by the Group.
Minority interests are presented within equity in the Group balance sheet, separately from the parent shareholders’
equity.
Assets Held for Sale
Assets are classified as held for sale if their carrying amount will be recovered principally through a sale rather than 
from continued use. Assets held for sale are valued at the lower of their carrying amount and fair value less costs to sell.
IFRS 5: Non-Current Assets Held for Sale and Discontinued Operations, which determines when an entity ceases to be
consolidated, has been applied with effect from 1 April 2005.
Business Combinations and Goodwill 
Goodwill represents the excess of the cost of the business combination over the fair value of the Group’s share of the
identifiable assets less liabilities and contingent liabilities of the acquired entity at the date of acquisition.
After initial recognition, goodwill is stated at cost less any accumulated impairment losses, with the carrying value being
reviewed for impairment, at least annually and whenever events or changes in circumstances indicate that the carrying
value may be impaired. NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
37 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
2 ACCOUNTING POLICIES CONTINUED
At the acquisition date, goodwill acquired is recognised as an asset and is allocated to each of the cash-generating units
expected to benefit from the combination's synergies. Goodwill is reviewed for impairment at least annually by assessing
the recoverable amount of each cash-generating unit to which the goodwill relates. Where the recoverable amount of
the cash-generating unit is less than the carrying amount, an impairment loss is recognised immediately in profit or loss
and is not subsequently reversed. Goodwill arising on the acquisition of associates is included within the carrying value
of the investment.
Any intangible assets acquired as part of a business combination are recognised separately from goodwill if the asset is
separable or arises from contractual or other legal rights and its fair value can be measured reliably.
On disposal of a subsidiary the attributable amount of goodwill is included in the determination of the profit or loss 
on disposal.
Goodwill arising on acquisitions before 1 April 2004 (the date of transition to IFRS) has been retained at the previous
UK GAAP amounts having been tested for impairment at that date. 
Intangible assets – software
Implementation costs of IT systems, and computer software, are amortised on a straight-line basis over their estimated
useful lives at rates of 12.5-33%. Software is assessed for impairment in accordance with IAS 36, Impairment of Assets,
when there are events or changes in circumstances that indicate that the carrying value may not be recoverable.
Property, plant and equipment 
Property, plant and equipment assets are carried at cost less accumulated depreciation and any accumulated 
impairment losses. 
Depreciation is provided on a straight-line basis to write off the cost, less residual value, over the estimated useful life 
of the asset at the following rates: 
Freehold land nil
Freehold buildings 2-3% 
Leasehold improvement costs     10-20% 
Plant, equipment and IT hardware 10-33%
All property, plant and equipment assets are reviewed for impairment in accordance with IAS 36, Impairment of Assets,
when there are events or changes in circumstances that indicate that the carrying value may not be recoverable. 
Impairment
At each balance sheet, the Group reviews the carrying value of its assets to determine whether there is any indication
that the assets have suffered an impairment loss. If any such indication exists, or when annual testing for an asset is
required, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any.
Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an 
asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or
cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately.
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, an impairment loss is reversed to the extent
that the asset’s carrying value does not exceed the carrying amount that would have been determined, net of depreciation
or amortisation, if no impairment loss had been recognised. Such reversals are recognised in the income statement.
Other financial assets
Investments are initially recognised at cost, being the fair value of the consideration given and including directly attributable
transaction costs associated with the investment. 
After initial recognition, investments in equity shares are treated as available for sale financial assets and are measured
at their fair value with any gains or losses recognised in equity. When the investment is derecognised or impaired, the
cumulative gain or loss previously reported in equity is included in the income statement. 
Investments in equity instruments that do not have a quoted market price in an active market and whose fair value can
not be reliably valued are measured at cost. 
Loans and receivables are non-derivative financial assets with fixed or determinable payments. They are included in current
assets, except for maturities greater than 12 months after the balance sheet date which are classified as non-current
assets. Loans and receivables are included in trade and other receivables in the balance sheet. 38 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
2 ACCOUNTING POLICIES CONTINUED
Other financial assets are assessed for impairment in accordance with IAS 36, Impairment of Assets, when there are
events or changes in circumstances that indicate that the carrying value may not be recoverable.
As explained in note 40, the Group has not restated comparative amounts on first applying IAS 32 and IAS 39, as
permitted in paragraph 36A of IFRS 1. The accounting policies applied to the comparative period are disclosed in 
note 40 (f).
Inventories 
Inventories comprise goods held for resale and are stated at the lower of weighted average cost and net realisable value
after making allowance for any obsolete or slow moving items. Cost includes carriage incurred. 
Trade and other receivables
Trade receivables are recognised and carried at original invoice amount less an allowance for any uncollectable amounts.
An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written
off when identified.
Cash and cash equivalents 
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with an
original maturity of three months or less. For the purposes of the consolidated cash flow statement, cash and cash
equivalents comprise cash and cash equivalents as defined above, net of outstanding bank overdrafts.
Borrowings
Borrowings are initially recognised at fair value of the consideration received net of any associated issue costs. Borrowings
are subsequently recorded at amortised cost, with any difference between the amount initially recorded and the redemption
value recognised in the income statement using the effective interest method.
Provisions
Provisions for warranties, onerous contracts and restructuring costs are recognised when the Group has a present legal
or constructive obligation as a result of a past event; it is probable that an outflow of resources will be required to settle
the obligation; and a reliable estimate can be made of the amount of the obligation.
Provisions are discounted to present value where the effect is material using a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. The amortisation of the discount is
recognised as a finance cost.
Foreign currency translation
Transactions in foreign currencies are initially recorded in the functional currency at the exchange rate ruling at the date
of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange
ruling at the balance sheet date and gains or losses on translation are included in the Income Statement. 
Currency gains and losses arising from the retranslation of the opening net assets of foreign operations, less those
arising from related currency borrowings to the extent that they are matched, are recorded as a movement on reserves,
net of tax. The differences that arise from translating the results of overseas businesses at average rates of exchange,
and their assets and liabilities at closing rates, are dealt with in a separate currency translation reserve. All other
currency gains and losses are dealt with in the Income Statement.
Revenue recognition
Revenue represents the invoiced value of goods, commission and other services provided to third parties, after deducting
discounts, VAT and similar taxes levied overseas. Revenue is recognised to the extent that it is probable that the economic
benefits will flow to the Group and the revenue can be reliably measured. In particular:
a Revenue from the sale of products is recognised upon transfer to the customer of the significant risks and 
rewards of ownership. This is generally when goods are despatched to customers.
b Revenue from service contracts is recognised over the life of the contract reflecting performance of the 
contractual obligations to the customer.
c Interest income is recognised as the interest accrues using the effective interest method.
d Dividend income is recognised when the shareholders’ right to receive the payment is established.
Dividends
Dividends are recognised when they meet the criteria for recognition as a liability. In relation to final dividends, this is
when approved by the shareholders in general meeting, and in relation to interim dividends, when paid.
Leases 
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases. NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
39 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
2 ACCOUNTING POLICIES CONTINUED
Assets held under finance leases are recognised as assets of the Group at their fair value or, if lower, at the present
value of the minimum lease payments, each determined at the inception of the lease. The corresponding liability to the
lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance
charges and reduction of the lease obligations so as to achieve a constant rate of interest on the remaining balance of
the liability.
Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease.
Borrowing costs
Borrowing costs are recognised as an expense in the period in which they are incurred.
Pensions 
Payments to defined contribution schemes are charged as an expense as they fall due. 
In respect of defined benefit pension schemes, the obligation recognised in the balance sheet represents the present
value of the defined benefit obligation as adjusted for any unrecognised past service cost, reduced by the fair value of
the scheme assets. The cost of providing benefits is determined using the projected unit credit actuarial valuation
method. Actuarial gains and losses are recognised in full in the period in which they occur in the Statement of
Recognised Income and Expense. 
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, calculated using an option pricing model, 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. In valuing equity-settled
transactions, no account is taken of non-market vesting conditions.
No expense is recognised for awards that do not ultimately vest. 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 hence the number of equity instruments
that will ultimately vest. The movement in cumulative expense since the previous balance sheet date is recognised in the
income statement, with a corresponding entry in equity.
Taxation 
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities, based on tax rates and laws that are enacted or substantively enacted by the balance sheet date.
Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities 
and their carrying amounts in the financial statements, with the following exceptions:
• where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a
transaction that is not a business combination that at the time of the transaction affects neither accounting nor
taxable profit or loss;
• in respect of taxable temporary differences associated with investments in subsidiaries and associates, where the
timing of the reversal of the temporary differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future; and
• deferred tax assets are recognised only to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, carried forward tax credits or tax losses can be utilised. 
Deferred tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply
when the related asset is realised or liability is settled, based on tax rates and laws enacted or substantively enacted at
the balance sheet date.
Income tax is charged or credited directly to equity if it relates to items that are credited or charged to equity. Otherwise
income tax is recognised in the income statement.
Financial instruments
The Group uses derivatives, principally forward currency contracts, to hedge risks associated with foreign currency fluctuations.
To 31 March 2005, assets and liabilities covered by forward exchange contracts were translated into sterling at forward
rates. From 1 April 2005, the date of adoption of IAS 32/39, such derivatives are initially recognised at fair value on the
date on which a contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as assets
when the fair value is positive and as liabilities when the fair value is negative. 40 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
2 ACCOUNTING POLICIES CONTINUED
The fair value of forward currency contracts is calculated by reference to current forward exchange rates for contracts
with similar maturity profiles. For those derivatives designated as hedges and for which hedge accounting is required,
the hedging relationship is documented at its inception. This documentation identifies the hedging instrument, the
hedged item or transaction, the nature of the risk being hedged and how effectiveness will be measured throughout its
duration. Such hedges are expected at inception to be highly effective.
For the purpose of hedge accounting, hedges are classified as cash flow hedges when hedging exposure to variability in
cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a probable
forecast transaction.
Any gains or losses arising from changes in the fair value of derivatives that do not qualify for hedge accounting are
taken to the income statement. 
For cash flow hedges, the effective portion of the gain or loss on the hedging instrument is recognised directly in equity,
while the ineffective portion is recognised in profit or loss. 
Amounts taken to equity are transferred to the income statement when the hedged transaction affects profit or loss,
such as when a forecast sale or purchase occurs. Where the hedged item is the cost of a non-financial asset or liability,
the amounts taken to equity are transferred to the initial carrying amount of the non-financial asset or liability.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer
meets the criteria for hedge accounting. Any amounts previously recognised in equity remain in equity until the forecast
transaction occurs. If a forecast transaction is no longer expected to occur, amounts previously recognised in equity or
as an asset or liability are transferred to profit or loss.
3 NEW ACCOUNTING STANDARDS AND FINANCIAL REQUIREMENTS
New standards and interpretations not applied
During the year, the IASB and IFRIC have issued the following standards and interpretations with an effective date after
the date of these financial statements:
effective date
International Accounting Standards (IAS/IFRS)
IFRS 1 Amendment relating to IFRS 6 1 January 2006
IFRS 4 Insurance contracts (Amendment to IAS 39 and IFRS 4 – Financial Guarantee Contracts) 1 January 2006
IFRS 6 Exploration for and Evaluation of Mineral Assets 1 January 2006
IFRS 6 Amendment relating to IFRS 6 1 January 2006
IFRS 7 Financial Instruments: Disclosures* 1 January 2007
IAS 1 Amendment – Presentation of Financial Statement: Capital Disclosures 1 January 2007
IAS 19 Amendment – Actuarial Gains and Losses, Group Plans and Disclosures 1 January 2006
IAS 39 Fair Value Option 1 January 2006
IAS 39 Amendments to IAS 39 – Transition and Initial Recognition of Financial Assets and Financial Liabilities (Day 1 profits) 1 January 2006
IAS 39 Cash Flow Hedge Accounting 1 January 2006
IAS 39 Amendment to IAS 39 and IFRS 4 – Financial Guarantee Contracts 1 January 2006
International Financial Reporting Interpretations Committee (IFRIC)
IFRIC 4 Determining whether an arrangement contains a lease 1 January 2006
IFRIC 5 Rights to Interests Arising from Decommissioning, Restoration and Environmental Rehabilitation Funds 1 January 2006
IFRIC 6 Liabilities arising from participation in a Specific Market – Waste Electrical and Electronic Equipment years commencing on or 
after 1 December 2005
The Directors do not anticipate that the adoption of these standards and interpretations will have a material impact on
the Group’s financial statements in the period of initial application.
* This standard requires additional disclosures to be made for financial instruments and is to be adopted by the Group during the year ending
31 March 2007. There is no impact on the reported amounts of financial instruments as a result of adopting this financial standard. NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
41 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
4 REVENUE
An analysis of the Group’s revenue is as follows:
2006 2005
£m £m
Sale of goods 240.6 229.3
Rendering of services 16.4 14.4
Total revenue 257.0 243.7
5 SEGMENTAL ANALYSIS
A business segment is a group of assets and operations engaged in providing products or services that are subject to
risks and returns that are different from those of other segments.
A geographical segment is engaged in providing products or services within a particular economic environment that is
subject to risks and returns that are different from those of segments operating in other economic environments.
For management purposes, the group is organised into three business segments – electronic components, IT Parts Services
and IT Solutions. These business segments are the basis on which the group reports its primary segment information.
Secondary segment information is based on geographic location; the group has activities in Europe and sales to the 
Rest of the World, according to the location of the markets and customers.
There are immaterial sales between business segments. Segment assets include intangible assets, property, plant and
equipment, inventories, trade and other receivables. Segment liabilities include trade and other payables and other
provisions. Capital expenditure comprises the balance sheet additions for property, plant and equipment and 
intangible assets.
The following tables present revenue and profit information and certain asset and liability information regarding
business segments for the years to 31 March 2006 and 31 March 2005.
Year to 31 March 2006
Total
Electronic IT Parts IT continuing Discontinued Total
components Services Solutions Unallocated operations operations operations
£m £m £m £m £m £m £m
Revenue 104.0 56.9 96.1 – 257.0 18.4 275.4
Segment result 3.5 6.0 3.6 (3.2) 9.9 1.3 11.2
Exceptional items:
Profit on disposal 
of investments – – – 0.6 0.6 – 0.6
Product withdrawal costs – – (0.8) – (0.8) – (0.8)
Net finance costs – – – (1.7) (1.7) – (1.7)
Share of post-tax profits 
from associates 0.4 – – – 0.4 – 0.4
Profit before taxation 3.9 6.0 2.8 (4.3) 8.4 1.3 9.7
Taxation (2.7) (0.4) (3.1)
Profit for the year 5.7 0.9 6.6 42 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
5 SEGMENTAL ANALYSIS CONTINUED
Assets and liabilities
Total
Electronic IT Parts IT continuing Discontinued Total
components Services Solutions operations operations operations
£m £m £m £m £m £m
Segment assets (excluding 
goodwill and associates) 42.8 21.1 33.3 97.2 6.2 103.4
Goodwill 36.9 11.6 0.3 48.8 – 48.8
Investment in associates 4.7 – – 4.7 – 4.7
84.4 32.7 33.6 150.7 6.2 156.9
Unallocated corporate assets 10.9
Current/deferred tax assets 5.7
Total assets 173.5
Segment liabilities (28.7) (9.1) (26.7) (64.5) (4.1) (68.6)
Unallocated corporate liabilities (18.6)
Pensions (9.1)
Current/deferred tax liabilities (5.5)
Total liabilities (101.8)
Net assets 55.7 23.6 6.9 86.2 2.1 71.7
Other segment information
Total
Electronic IT Parts IT continuing Discontinued Total
components Services Solutions Unallocated operations operations operations
£m £m £m £m £m £m £m
Capital expenditures: 
Property, plant and equipment 0.8 0.5 0.8 0.1 2.2 – 2.2
Intangible fixed assets 0.1 0.1 – – 0.2 0.1 0.3
Depreciation 0.8 0.5 0.7 0.1 2.1 – 2.1
Amortisation 0.1 0.2 0.1 0.7 1.1 – 1.1
Change in provisions (0.2) 0.2 – 0.5 0.5 0.2 0.7
Net inventory write downs 1.1 1.0 1.0 – 3.1 – 3.1
Year to 31 March 2005
Total
Electronic IT Parts IT continuing Discontinued Total
components Services Solutions Unallocated operations operations operations
£m £m £m £m £m £m £m
Revenue 100.1 51.3 92.3 – 243.7 17.0 260.7
Segment result 4.7 5.0 4.4 (2.7) 11.4 1.2 12.6
Net finance costs – – – (1.9) (1.9) – (1.9)
Share of post-tax profits 
from associates 0.4 – – – 0.4 – 0.4
Profit before taxation 5.1 5.0 4.4 (4.6) 9.9 1.2 11.1
Taxation (3.3) (0.4) (3.7)
Profit for the year 6.6 0.8 7.4 NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
43 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
5 SEGMENTAL ANALYSIS CONTINUED
Assets and liabilities
Total
Electronic IT Parts IT continuing Discontinued Total
components Services Solutions operations operations operations
£m £m £m £m £m £m
Segment assets (excluding
goodwill and associates) 41.0 21.1 37.0 99.1 6.4 105.5
Goodwill 36.8 11.6 0.3 48.7 – 48.7
Investment in associates 3.9 – – 3.9 – 3.9
81.7 32.7 37.3 151.7 6.4 158.1
Unallocated corporate assets 6.3
Current/deferred tax assets 3.0
Total assets 167.4
Segment liabilities (29.5) (8.8) (28.9) (67.2) (4.1) (71.3)
Unallocated corporate liabilities (13.8)
Pensions (6.4)
Current/deferred tax liabilities (3.4)
Total liabilities (94.9)
Net assets 52.2 23.9 8.4 84.5 2.3 72.5
Other segment information
Total
Electronic IT Parts IT continuing Discontinued Total
components Services Solutions Unallocated operations operations operations
£m £m £m £m £m £m £m
Capital expenditures: 
Property, plant and equipment 0.7 0.4 0.5 – 1.6 – 1.6
Intangible fixed assets 0.1 0.1 0.1 0.4 0.7 – 0.7
Depreciation 0.9 0.5 0.8 0.1 2.3 – 2.3
Amortisation 0.1 0.2 0.1 0.5 0.9 – 0.9
Change in provisions 0.4 (0.4) –––––
Net inventory write downs 0.1 0.9 0.1 – 1.1 – 1.1
Geographical segments
Revenue by geographic market
2006 2005
£m £m
Europe 250.8 236.1
Rest of the World 6.2 7.6
257.0 243.7
Revenue by geographic markets is analysed further elsewhere in the report and accounts to provide additional
information to users of these accounts. 44 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
5 SEGMENTAL ANALYSIS CONTINUED
Capital expenditure by geographic origin
2006 2005
£m £m
Europe 2.4 2.3
Rest of the World 0.1 –
2.5 2.3
Capital expenditure comprises additions of property, plant and equipment and intangible assets (excluding goodwill).
Assets by geographic origin
2006 2005
£m £m
Europe 86.9 85.2
Rest of the World 1.4 1.6
Operating assets by segment 88.3 86.8
Unallocated corporate assets 10.9 6.3
Unallocated corporate liabilities (18.6) (13.8)
Pensions (9.1) (6.4)
Current tax assets/(liabilities) 0.2 (0.4)
Total net assets 71.7 72.5
6 EXCEPTIONAL ITEMS
Continuing operations
2006 2005
£m £m
Other operating income:
Profit on disposal of investments 0.6 –
Other operating expenses:
Product withdrawal costs (0.8) –
Product withdrawal costs comprise inventory write downs of £0.4m and impairment of financial assets of £0.4m.
7 OTHER OPERATING INCOME
2006 2005
£m £m
Net gains on disposal of property, plant and equipment 0.1 0.4
Profit on disposal of investments 0.6 –
Dividends from investments 0.1 0.1
Other 0.1 –
0.9 0.5 NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
45 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
8 OPERATING PROFIT
Operating profit is stated after charging/(crediting):
2006 2005
£m £m
Employee costs (note 9) 36.1 36.6
Depreciation of property, plant and equipment (note 16) 2.1 2.3
Amortisation of intangible assets (note 19) 1.1 0.9
Inventories (amounts included in cost of sales):
Cost of inventories 187.2 173.5
Write-down of inventories 3.2 1.1
Reversal of prior year write-down of inventories (0.1) –
Operating lease rentals:
Minimum lease payments recognised as an operating lease expense 4.1 3.9
Audit fees 0.3 0.3
Fees to auditors for tax compliance 0.1 0.1
9 EMPLOYEE COSTS
2006 2005
£m £m
Wages and salaries 30.2 30.5
Social security costs 4.4 4.6
Pension costs 1.4 1.4
Equity settled share-based payments 0.1 0.1
36.1 36.6
The average monthly number of employees (including Executive Directors) during the year was as follows:
2006 2005
Number Number
Marketing, sales and service 807 792
Administration 191 203
998 995
Details of Directors’ emoluments are disclosed in the remuneration report on pages 24 to 27. 
10 FINANCE COSTS/(REVENUE)
2006 2005
£m £m
Interest expense on bank loans and overdrafts 2.2 2.3
Net pension finance charge 0.1 0.2
Finance costs 2.3 2.5
Interest receivable and similar income (0.6) (0.6)
Finance revenue (0.6) (0.6) 46 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
11 TAXATION
The major components of corporation tax expense for the years ended 31 March 2006 and 2005 are:
Consolidated income statement for continuing operations
2006 2005
£m £m
Current taxation
UK corporation tax 3.2 3.2
UK adjustments in respect of prior years 0.1 (0.1)
3.3 3.1
Overseas tax 0.3 0.3
Overseas adjustments in respect of prior years (0.1) (0.1)
0.2 0.2
Total current taxation 3.5 3.3
Deferred taxation
Origination and reversal of temporary differences within the UK (0.7) –
Origination and reversal of temporary differences overseas (0.1) –
Total deferred taxation (0.8) –
Tax reported in the consolidated income statement for continuing operations 2.7 3.3
Consolidated statement of changes in equity
2006 2005
£m £m
(Increase)/decrease in deferred tax asset on pensions (0.8) 0.2
Tax reported in equity (0.8) 0.2 NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
47 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
11 TAXATION CONTINUED
A reconciliation of the tax charge applicable to profit from operating activities before tax at the statutory tax rate to the
actual tax charge at the Group’s effective tax rate for the years ended 31 March 2006 and 31 March 2005 respectively
was as follows:
Taxation for the year is higher (2005: higher) than the standard rate of taxation in the UK (30%). The differences are
explained below:
2006 2005
£m £m
Accounting profit before tax from continuing operations 8.4 9.9
Accounting profit before tax from discontinued operations 1.3 1.2
Accounting profit before tax 9.7 11.1
Profit before taxation multiplied by standard rate of corporation tax 
in the UK of 30% (2005: 30%) 2.9 3.3
Effect of:
Different tax rates in overseas companies – 0.2
Associate companies (0.1) (0.1)
Utilisation of tax losses not previously recognised (0.2) –
Current year losses not recognised 0.4 0.5
Non-deductible expenses 0.1 0.2
Adjustments to tax expense in respect of prior years – (0.3)
Adjustments to deferred tax expense in respect of prior years – (0.1)
At effective tax rate of 32.3% (2005: 33.3%) 3.1 3.7
Tax expense reported in the consolidated income statement for continuing operations 2.7 3.3
Tax expense attributable to discontinued operations 0.4 0.4
3.1 3.7
The current tax asset represents advance payments receivable within one year.
Deferred tax
Deferred tax at 31 March 2006 relates to the following:
2006 2005
£m £m
Deferred tax liabilities
Accelerated capital allowances (0.7) (0.6)
Undistributed earnings of overseas associates (0.4) (0.3)
Other temporary differences (0.7) (0.6)
Gross deferred tax liabilities (1.8) (1.5)
Deferred tax assets
Pensions 2.7 1.9
Tax losses 0.2 0.1
Other 1.1 0.1
Gross deferred tax assets 4.0 2.1 48 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
11 TAXATION CONTINUED
Deferred tax in the income statement
2006 2005
£m £m
Consolidated income statement
Deferred tax charge/(credit)
Accelerated capital allowances (0.1) 0.1
Other temporary differences (0.7) (0.1)
(0.8) –
At 31 March 2006, the Group had recognised a deferred tax asset of £0.2 million (2005: £0.1 million) in respect of tax
losses of about £0.7 million (2005: £0.5 million). These losses may all be carried forward indefinitely. At 31 March 2006
the Group had not recognised any deferred tax asset in respect of income tax losses of approximately £6.3 million
(2005: £5.6 million). Deferred tax assets are not recognised where there is insufficient evidence that losses will be utilised.
12 DISCONTINUED OPERATIONS
A contract for the disposal of the Air Conditioning and Refrigeration business was signed on 25 May 2006 with
completion expected before the end of July 2006. The results of this business have been presented under discontinued
operations in the consolidated income statement and their assets and liabilities classified as held for sale.
The profit for the year from discontinued operations is derived as follows:
2006 2005
£m £m
Revenue 18.4 17.0
Expenses (17.1) (15.8)
Profit before financing and tax 1.3 1.2
Finance costs (net) – –
Profit before tax 1.3 1.2
Income tax expense (0.4) (0.4)
Profit for the year from discontinued operations 0.9 0.8
Cash flows relating to discontinued operations are as follows:
2006 2005
£m £m
Net cash inflows from operating activities 1.3 1.2
Net cash outflows from investing activities (0.3) (0.7)
Net cash flows from financing activities – –
Net increase in cash and cash equivalents 1.0 0.5 NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
49 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
12 DISCONTINUED OPERATIONS CONTINUED
Assets classified as held for sale
The major classes of assets and liabilities classified as held for sale and measured at the lower of carrying amount and
fair value less costs to sell are:
2006
£m
Property, plant and equipment 0.1
Intangible assets – software 0.1
Inventories 2.1
Trade and other receivables 3.9
Total assets 6.2
Trade and other payables (4.1)
Total liabilities (4.1)
13 DIVIDENDS
Amounts recognised in equity as distributions to equity holders in the year
2006 2005
£m £m
Equity dividends on ordinary shares:
Final dividend for the year ended 31 March 2005 of 14.4p (2004: 14p) 3.8 3.7
Interim dividend for the year ended 31 March 2006 of 7.2p (2005: 7.2p) 1.9 1.9
Total amounts recognised as equity distributions during the year 5.7 5.6
Proposed for approval at the AGM
2006 2005
£m £m
Equity dividends on ordinary shares:
Final dividend for the year ended 31 March 2006 of 14.4p (2005: 14.4p) 3.8 3.8
14 EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit for the year attributable to ordinary equity holders of the
parent by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share is the basic earnings per share after allowing for the dilutive effect of the conversion into
ordinary shares of the weighted average number of options outstanding during the period. 
The following reflects the income and share data used in the basic and diluted earnings per share computations:
2006 2005
£m £m
Profit for the year from continuing operations attributable 
to equity holders of the parent 5.1 6.2
Profit for the year from discontinued operations attributable 
to equity holders of the parent 0.9 0.8
Profit for the year attributable to equity holders of the parent 6.0 7.0 50 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
14 EARNINGS PER SHARE CONTINUED
2006 2005
million million
Weighted average number of shares for basic earnings per share 26.4 26.4
Effect of dilution – share options – –
Adjusted weighted average number of shares for diluted earnings per share 26.4 26.4
At the year end there were 1.1 million ordinary share options in issue that could potentially dilute earnings per share in
the future but are not included in the calculation at the year end because they are anti-dilutive (2005: 1.4 million).
15 ACQUISITIONS
There were no acquisitions in the current year.
On 16 July 2004, the Group acquired all of the issued share capital of Mecodis SA for a consideration of £3.7 million
(including costs).
Deferred consideration of £0.4 million based on Mecodis SA’s gross margin for the twelve months ended 15 July 2005
was paid during the year, as anticipated in the 2005 financial statements. 
The acquisition gave rise to no other gains or losses during the year.
16 PROPERTY, PLANT AND EQUIPMENT
Freehold Leasehold Plant and
property property (short) equipment Total
£m £m £m £m
Cost
At 1 April 2004 3.1 2.9 15.2 21.2
Additions – – 1.6 1.6
Disposals (0.6) (0.1) (3.2) (3.9)
Exchange adjustments 0.1 – 0.2 0.3
At 31 March 2005 2.6 2.8 13.8 19.2
Additions – 0.2 2.0 2.2
Disposals – – (2.5) (2.5)
Disclosed as held for sale in the year – – (0.3) (0.3)
Exchange adjustments – – 0.1 0.1
At 31 March 2006 2.6 3.0 13.1 18.7
Depreciation
At 1 April 2004 0.9 1.5 10.7 13.1
Charge for the year 0.1 0.2 2.0 2.3
Disposals (0.1) (0.1) (3.1) (3.3)
Exchange adjustments – – 0.2 0.2
At 31 March 2005 0.9 1.6 9.8 12.3
Charge for the year 0.1 0.3 1.7 2.1
Disposals – – (2.3) (2.3)
Disclosed as held for sale in the year – – (0.2) (0.2)
Exchange adjustments – – 0.1 0.1
At 31 March 2006 1.0 1.9 9.1 12.0
Net book amount at 31 March 2006 1.6 1.1 4.0 6.7
Net book amount at 31 March 2005 1.7 1.2 4.0 6.9
Net book amount at 31 March 2004 2.2 1.4 4.5 8.1 NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
51 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
16 PROPERTY, PLANT AND EQUIPMENT CONTINUED
Freehold property includes land with a cost of £468,000 (2005: £464,000) that is not subject to depreciation. Assets
held under finance leases with a net book amount of £nil (2005: £7,000) are included in plant and equipment.
Capital expenditure commitments
2006 2005
£m £m
Capital expenditure commitments for tangible fixed assets for which 
no provision has been made 0.4 0.2
17 GOODWILL
Subsidiary
companies
£m
Cost
At 1 April 2004 59.5
Exchange adjustments –
Acquisition of a subsidiary 1.9
At 31 March 2005 61.4
Exchange adjustments 0.1
Acquisition of a subsidiary –
At 31 March 2006 61.5
Amortisation and impairment
At 1 April 2004, 31 March 2005 and 31 March 2006 12.7
Net book amount at 31 March 2006 48.8
Net book amount at 31 March 2005 48.7
Net book amount at 31 March 2004 46.8
Goodwill is not amortised but is subject to annual impairment testing.
18 IMPAIRMENT TESTING OF GOODWILL
The carrying amount of goodwill is divided as follows:
2006 2005
£m £m
ATM Parts Company Limited 5.4 5.4
Computer Parts International Limited 4.1 4.1
UK electronic components businesses 34.4 34.4
Other 4.9 4.8
48.8 48.7
Goodwill acquired through business combinations is allocated to cash-generating units (CGUs).
The recoverable amount of a CGU is based upon value in use calculations based upon the three year business plans
approved by the Board. Cash flows beyond the plan period are extrapolated using a 3% growth rate (2005: 3%). This
rate does not exceed the average long-term growth rate for the relevant markets. The discount rate applied to cash
flow projections, based upon management’s expectations of the weighted average cost of capital, is 8% (2005: 8%).
The impairment review results in no impairment of the goodwill carrying value. 52 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
19 INTANGIBLE ASSETS – SOFTWARE
£m
Cost
At 1 April 2004 8.5
Additions 0.7
Disposals (0.1)
At 31 March 2005 9.1
Additions 0.3
Disposals (0.4)
Disclosed as held for sale in the year (0.2)
At 31 March 2006 8.8
Amortisation
At 1 April 2004 2.6
Amortisation 0.9
Disposals (0.1)
At 31 March 2005 3.4
Amortisation 1.1
Disposals (0.4)
Disclosed as held for sale in the year (0.1)
At 31 March 2006 4.0
Net book amount at 31 March 2006 4.8
Net book amount at 31 March 2005 5.7
Net book amount at 31 March 2004 5.9
The computer software capitalised principally relates to the implementation of one system through the majority of the
Electronics and IT Solutions businesses. The ERP system has a carrying amount of £4.5 million (2005: £5.2 million) and a
remaining amortisation period of 5.5 years.
Capital expenditure commitments in relation to IT software at 31 March 2006 were £nil (2005: £nil).
20 INVESTMENTS IN ASSOCIATES
2006 2005
£m £m
Cost
At 1 April 2005 3.9 4.1
Disposals – (0.3)
Share of profit for the year 0.4 0.4
Exchange adjustments 0.5 –
Dividends received from associates (0.1) (0.3)
At 31 March 2006 4.7 3.9
Country of % equity interest
incorporation 2006 2005
Principal associates
Ceratech Holdings PLC England 30 30
Scientific Digital Business (Pte) Ltd Singapore 40 40
Westech Electronics (Pte) Ltd Singapore 36.7 36.7 NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
53 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
20 INVESTMENTS IN ASSOCIATES CONTINUED
WesTech Electronics Limited, an electronics and engineering solutions provider, is listed on the Singapore Stock
Exchange. The investment had a book value at 31 March 2006 of £4.1 million (2005: £3.3 million) and a market value
of £3.8 million (2005: £2.3 million).
The other associates are private entities which are not listed on any public exchange and therefore there is no published
quotation price for the fair value of these investments.
The investments are held by Acal plc and Centre Industries Limited.
The following tables provide summarised information on the Group’s investment in associate undertakings:
Share of associates’ balance sheets
2006 2005
£m £m
Current assets 11.8 6.0
Non-current assets 1.3 1.2
Share of gross assets 13.1 7.2
Current liabilities (8.3) (3.0)
Non-current liabilities (0.1) (0.3)
Share of gross liabilities (8.4) (3.3)
Share of net assets 4.7 3.9
Summarised income statement information in respect of the Group’s associates is set out below:
Share of associates’ revenue and profit
2006 2005
£m £m
Revenue 32.3 15.7
Profit 0.4 0.4
21 OTHER FINANCIAL ASSETS
2006 2005
£m £m
Cost
At 1 April 2005 2.2 2.3
Effect of adoption of IAS 32 and IAS 39 0.4 –
Disposals (2.3) (0.1)
At 31 March 2006 0.3 2.2
Non-current 0.3 2.2
Other financial assets include the following:
2006 2005
£m £m
Listed securities:
Equity securities – UK – 1.9
Unlisted securities 0.3 0.3
0.3 2.2 54 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
21 OTHER FINANCIAL ASSETS CONTINUED
Available-for-sale financial assets consist of investments in ordinary shares, and therefore have no fixed maturity date 
or coupon rate.
The unlisted securities are stated at cost as management believes that there is no readily available fair value.
22 INVENTORIES
2006 2005
£m £m
Finished goods and goods for resale 21.4 25.5
23 TRADE AND OTHER RECEIVABLES
2006 2005
£m £m
Trade receivables 50.1 48.3
Amounts owed by associates 0.1 0.2
Other debtors 2.0 4.1
Prepayments and accrued income 5.8 3.0
58.0 55.6
Trade and other receivables are generally non-interest bearing and on 30-60 day terms.
24 CASH AND CASH EQUIVALENTS
2006 2005
£m £m
Cash at bank and in hand 16.9 15.9
Cash at bank earns interest at floating rates based on daily bank deposit rates. 
25 FINANCIAL LIABILITIES
Current Non-current
Effective
interest rate 2006 2005 2006 2005
% Maturity £m £m £m £m
Bank overdrafts Variable On demand 6.1 7.9 – –
Secured:
Bank loans See below 0.1 0.1 0.2 0.2
Unsecured:
Revolving credit facility (£10m) Variable 31 Oct 2006 5.0 – – 7.0
Revolving credit facility (£25m) Variable 30 Sep 2007 – – 12.0 13.0
Total 11.2 8.0 12.2 20.2
Interest on overdrafts is based on floating rates linked to LIBOR.
Interest rates on floating rate loans are all linked to LIBOR.
Secured bank loans
The secured bank loans comprise a sterling loan of £0.1m which carries an interest rate of 10.3% and a euro
denominated loan of £0.2m which carries fixed interest rates of between 4.25% and 5.7%. The debt is secured on
certain property, plant and equipment. 55 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
25 FINANCIAL LIABILITIES CONTINUED
Revolving credit facility (£25m)
The revolving credit facility was entered into on 12 February 2004 and runs until 30 September 2007. Loans have
variable interest rates linked to LIBOR.
Revolving credit facility (£10m)
The revolving credit facility was entered into on 31 January 2002 and runs until 31 October 2006. Loans have variable
interest rates linked to LIBOR.
Financial covenants
Revolving credit facilities
The debt is subject to certain financial covenants relating to gearing and net worth. In the event of a breach of these
covenants, and during the period that the breach continues, the debt and any outstanding interest may become due
and payable immediately on demand from the banks. In addition the facilities may be cancelled.
The maturity of the borrowings is as follows:
Year ended 31 March 2006
Within 2-5 Over 5
1 year years years Total
£m £m £m £m
Floating rate 11.2 12.2 – 23.4
Year ended 31 March 2005
Within 2-5 Over 5
1 year years years Total
£m £m £m £m
Floating rate 8.0 20.2 – 28.2
The carrying amount of the Group’s borrowings is denominated in the following currencies:
2006 2005
£m £m
Pound sterling 17.1 20.3
Euro 4.4 7.0
US dollar 1.5 0.6
Other currencies 0.4 0.3
23.4 28.2
At 31 March 2006, the Group had available £18.0 million (2005: £15.0 million) of undrawn committed borrowing
facilities in respect of which all conditions precedent had been met. 56 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
26 MOVEMENTS IN CASH AND NET DEBT
31 March Foreign 31 March
2005 Cash flow exchange 2006
£m £m £m £m
Cash at bank and in hand 15.9 16.9
Overdrafts (7.9) (6.1)
Cash and cash equivalents 8.0 2.7 0.1 10.8
Loan capital under one year (0.1) (5.1)
Loan capital over one year (20.2) (12.2)
Total loan capital (20.3) 3.0 – (17.3)
Net debt (12.3) 5.7 0.1 (6.5)
27 PROVISIONS
Onerous Severance Deferred
contracts indemnity consideration Other Total
£m £m £m £m £m
At 1 April 2005 0.2 0.2 0.4 0.1 0.9
Arising during the year 0.6 0.1 – 0.7 1.4
Utilised (0.2) – (0.4) – (0.6)
At 31 March 2006 0.6 0.3 – 0.8 1.7
Analysis of total provisions:
2006 2005
£m £m
Current 1.0 0.7
Non-current 0.7 0.2
1.7 0.9
Onerous contracts
The onerous contracts provision relates to lease obligations in respect of unoccupied properties. Onerous contract
provisions are expected to be used over periods of up to 5 years.
Severance indemnity
The severance indemnity provision relates to severance costs payable to employees. 
Deferred consideration
The deferred consideration provision relates to the purchase of subsidiaries.
Other
The other provision relates to other claims.  57 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
28 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s principal financial instruments, other than forward currency contracts, comprise bank loans, overdraft
facilities, cash and short-term deposits. The Group’s financial instrument policies can be found in the accounting policies
in note 2. The main risks arising from the Group’s financial instruments are interest rate risk, liquidity risk and credit risk.
The Board agrees policies for managing each of these risks and they are summarised below:
Interest rate risk
The Group’s exposure to market risk for changes in interest rates relates to the Group’s debt obligations. The Group has
not hedged against interest rate risk. Based on the Group’s net debt position at the year end, a 1% change in interest
rates would affect costs by approximately £61,000 (2005: £119,000).
Liquidity risk
The Group mitigates liquidity risk by managing the cash generation of its operations, combined with bank borrowings
and long-term debt. In its funding strategy the Group’s objective is to maintain a balance between the continuity of
funding and flexibility through the use of overdrafts and bank loans.
Excess cash used in managing liquidity is placed on interest-bearing deposit with maturities fixed at no more than 
three months.
Credit risk
There are no significant concentrations of credit risk within the Group.
The Group is exposed to some credit risk that is primarily attributable to its trade and other receivables. This is
minimized by dealing with recognised, creditworthy third parties. It is the Group’s policy that all customers who wish 
to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on
an ongoing basis with the result that the Group’s exposure to bad debts is not significant. The amounts included in the
balance sheet are net of allowances for doubtful debts, which have been estimated by management based on prior
experience and known factors at the balance sheet date which may indicate that a provision is required.
With respect to credit risk relating to cash and cash equivalents the Group’s exposure to credit risk arises from default 
of the counterparty, with the maximum exposure equal to the carrying amount of these instruments. Risk is limited as
the Group only maintains liquid funds with banks with high credit ratings.
29 FINANCIAL ASSETS AND LIABILITIES
Fair values 
Set out below is a comparison by category of carrying amounts and fair values of all the Group’s financial instruments
that are carried in the financial statements.
Carrying Fair
amount value
2006 2006
£’000 £’000
Financial assets
Cash and cash equivalents 16.9 16.9
Other financial assets 0.3 0.3
Financial liabilities
Bank overdrafts and short-term borrowings (11.2) (11.2)
Interest bearing loans and borrowings
Floating rate borrowings (12.0) (12.0)
Fixed rate borrowings (0.2) (0.2)
Comparative information
For the year to 31 March 2005, the Group is reporting its comparative information on the basis of FRS 13 as required 
by IFRS 1. 58 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
29 FINANCIAL ASSETS AND LIABILITIES CONTINUED
Analysis of interest rate exposure and currency of net debt
Loan capital Weighted averages
re fixed rate debt
Floating Fixed
Total Cash Overdrafts rate rate Interest Period rate
£m £m £m £m £m rate is fixed for
2005
Sterling 19.0 (1.3) 0.2 20.0 0.1 10.3% 2.0 years
Euro (2.1) (9.1) 6.8 – 0.2 4.9% 2.3 years
US dollar (4.3) (4.9) 0.6 – –
Other currencies (0.3) (0.6) 0.3 – –
Net debt 12.3 (15.9) 7.9 20.0 0.3
Analysis of currency and interest rate exposure of financial assets
Other
Total Cash investments
£m £m £m
2005
Sterling 3.5 1.3 2.2
Euro 9.1 9.1 –
US dollar 4.9 4.9 –
Other currencies 0.6 0.6 –
18.1 15.9 2.2
Floating Interest Fixed
Total rate free rate
£m £m £m £m
2005
Sterling 3.5 1.3 2.2 –
Euro 9.1 9.1 – –
US dollar 4.9 4.9 – –
Other currencies 0.6 0.6 – –
18.1 15.9 2.2 –
Interest free financial assets are investments in unquoted and quoted securities.
Analysis of currency and interest rate exposure of financial liabilities
Total Provisions Overdrafts Loan capital
£m £m £m £m
2005
Sterling 20.4 0.1 0.2 20.1
Euro 7.8 0.8 6.8 0.2
US dollar 0.6 – 0.6 –
Other currencies 0.3 – 0.3 –
29.1 0.9 7.9 20.3 59 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
29 FINANCIAL ASSETS AND LIABILITIES CONTINUED
Weighted averages
re fixed rate debt
Floating Interest Fixed
Total rate free rate Interest Period rate is
£m £m £m £m rate fixed for
2005
Sterling 20.4 20.2 0.1 0.1 10.3% 2.0 years
Euro 7.8 6.8 0.8 0.2 4.9% 2.3 years
US dollar 0.6 0.6 – –
Other currencies 0.3 0.3 – –
29.1 27.9 0.9 0.3
Interest free liabilities are mainly deferred consideration, onerous contracts and other provisions with no fixed 
maturity dates.
Fair value of financial instruments
Carrying Fair
values values
2005 2005
£m £m
Loan capital (20.3) (20.3)
The fair value of loan capital is calculated by discounting all future cash flows by the market yield curve at the balance
sheet date. For all other financial assets and liabilities there is no difference between their carrying value and fair values
due to the short-term nature of these assets and liabilities.
30 TRADE AND OTHER PAYABLES
2006 2005
£m £m
Trade payables 36.3 37.8
Other payables 7.5 4.4
Accrued expenses and deferred income 14.2 13.8
58.0 56.0
Trade payables are non-interest bearing and are settled taking into account local good practice.
Other payables are non-interest bearing and settled throughout the year.
Accruals are non-interest bearing and settled throughout the year.
Deferred income is recognised throughout the year. 
31 SHARE CAPITAL
Authorised
2006 2005
million million
Ordinary shares of 5p each 1.75 1.75 
Allotted, called up and fully paid
2006 2005
Number £m Number £m
Ordinary shares of 5p each 26,416,854 1.3 26,416,854 1.3
26,416,854 1.3 26,416,854 1.3
There were no shares issued during the year (2005: 50,000). 60 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
32 RESERVES
Attributable to equity holders of the parent Minority Total
interests equity
Share
Issued Share scheme Retained Other
capital premium reserve earnings reserves Total
£m £m £m £m £m £m £m £m
At 1 April 2004 1.3 37.8 – 29.7 0.8 69.6 0.9 70.5
Total recognised income and expense for the year – – – 6.8 0.3 7.1 0.4 7.5
Issue of share capital – 0.2 – – – 0.2 – 0.2
Share-based payments – – 0.1 – – 0.1 – 0.1
Equity dividends – – – (5.6) – (5.6) – (5.6)
Dividends paid to minority interests – – – – – – (0.1) (0.1)
Movements in associates reserves – – – (0.1) – (0.1) – (0.1)
At 31 March 2005 1.3 38.0 0.1 30.8 1.1 71.3 1.2 72.5
Effect of adopting IAS 32 and IAS 39 – – – – 0.4 0.4 – 0.4
At April 2005 1.3 38.0 0.1 30.8 1.5 71.7 1.2 72.9
Total recognised income and expense for the year – – – 3.4 0.3 3.7 0.6 4.3
Share-based payments – – 0.1 – – 0.1 – 0.1
Equity dividends – – – (5.7) – (5.7) – (5.7)
Movements in associates reserves – – – 0.1 – 0.1 – 0.1
At 31 March 2006 1.3 38.0 0.2 28.6 1.8 69.9 1.8 71.7
Nature and purpose of reserves
Share Scheme reserve
The share scheme reserve is used to account for share based payments.
33 OTHER RESERVES
Net Currency
unrealised Merger translation
gains reserve reserve reserve Total
£m £m £m £m
At 1 April 2004 –0.8 –0.8
Total recognised income and expense for the year – – 0.3 0.3
At 31 March 2005 – 0.8 0.3 1.1
Effect of adopting IAS 32 and IAS 39 0.4 – – 0.4
At 1 April 2005 0.4 0.8 0.3 1.5
Total recognised income and expense for the year (0.4) – 0.7 0.3
At 31 March 2006 – 0.8 1.0 1.8
Nature and purpose of other reserves
Net unrealised gains reserve
The net unrealised gains reserve is used to record changes in the fair value of available-for-sale financial assets.
Merger reserve
The merger reserve arose as a consequence of the acquisition in 1987 of Centre Industries Limited and Acal 
Auriema Limited.
Foreign currency translation reserve 
The foreign currency translation reserve is used to record exchange differences arising from the translation of the
financial statements of foreign subsidiaries and other foreign currency investments. 61 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
34 COMMITMENTS AND CONTINGENCIES
Operating lease commitments
The Group leases various buildings under non-cancellable operating lease agreements. The leases have varying terms,
escalation clauses and renewal rights.
The Group also leases certain motor vehicles and items of machinery. These leases have an average life of between 
3 and 5 years with no renewal option included in the contracts. There are no restrictions placed upon the lessee by
entering into these leases.
Future minimum rentals payable under non-cancellable operating leases are as follows:
2006 2005
£m £m
Due within one year 2.8 3.4
Due after one year but not more than five years 8.6 9.9
Due after more than five years 3.0 0.7
14.4 14.0
Contingent liabilities
There were no material contingent liabilities at 31 March 2006 or 31 March 2005.
Guarantees
At 31 March 2006 Group companies had given counter indemnities to bankers in respect of their guarantees to the
value of £2.2 million. (2005: £2.2 million). The Group also has guarantees and offset arrangements supporting
subsidiary bank facilities.
35 SHARE-BASED PAYMENT PLANS
The Group operates an approved and an unapproved executive share option scheme, the rules of which are similar in all
material respects. The grant of options to executive directors and senior management is recommended by the
Remuneration Committee on the basis of their contribution to the Group’s success. The options vest after three years.
The exercise price of the options is equal to the closing mid-market price of the shares on the trading day previous to
the date of the grant. The exercise of options is subject to the meeting of performance criterion; namely, that the growth
in the company’s earnings per share in any three year period before exercise must have exceeded the percentage
increase in the Retail Price Index over the same period plus two per cent per annum. Exercise of an option is subject to
continued employment. The life of each option granted is seven years. There are no cash settlement alternatives.
Options are valued using the Black-Scholes option-pricing model. No performance conditions were included in the fair
value calculations. The fair value per option granted and the assumptions used in the calculation are as follows:
Grant date 30 June 2005 12 July 2004 17 June 2003
Share price at grant date £3.35 £4.80 £5.38
Exercise price £3.35 £4.80 £5.25
Number of employees 59 70 74
Shares under option 122,300 141,500 176,000
Vesting period (years) 3 3 3
Expected volatility 28.0% 28.7% 30.8%
Option life (years) 7 7 7
Expected life (years) 4.5 4.5 4.5
Risk free rate 4.5% 5.06% 3.6%
Expected dividends expressed as a dividend yield 4.3% 4.3% 4.3%
Fair value £0.70 £1.03 £1.18
The expected volatility is based on historical volatility over the previous five years. The expected life is the average
expected period to exercise. The risk free rate of return is the yield on zero-coupon UK government bonds of a term
consistent with the assumed option life.
The total charge for the year relating to employer share-based payment schemes was £0.1 million (2005: £0.1 million),
all of which relates to equity-settled share-based payment transactions. After deferred tax the total charge was £0.1
million (2005: £0.1 million).
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED 62 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
35 SHARE-BASED PAYMENT PLANS CONTINUED
Outstanding share options
There were no options exercised under the share option schemes during the year. A summary of the options over
ordinary shares that have been granted under various Group share option schemes and remain outstanding at 
31 March 2006 is given below:
Outstanding Granted Expired Forfeited Exercised Outstanding Exercise
at 31 March during the during the during the during the at 31 March price Exercise
2005 year year year year 2006 (pence) dates
181,000 – (181,000) – – – 363.50 2001-2005
169,000 – – (65,000) – 104,000 462.50 2002-2006
374,000 – – (144,000) – 230,000 517.50 2003-2007
102,000 – – (50,000) – 52,000 537.50 2004-2008
185,500 – – (20,000) – 165,500 515.00 2004-2008
235,000 – – (49,000) – 186,000 586.50 2005-2009
168,000 – – (20,000) – 148,000 525.00 2006-2010
139,500 – – (15,750) – 123,750 480.00 2007-2011
– 122,300 – (1,500) – 120,800 335.00 2008-2012
1,554,000 122,300 (181,000) (365,250) – 1,130,050
As part of the acquisition of Sedgemoor, certain option holders in Sedgemoor converted their holdings to options in
Acal. The movements on these options are as follows:
Outstanding Lapsed Exercised Outstanding
at 31 March during the during the at 31 March Exercise price
2005 year year 2006 (pence) Exercise dates
8,556 (2,139) – 6,417 465.72 2001-2008
Changes in share options
A reconciliation of option movements over the year to 31 March 2006 is shown below:
2006 2005
Weighted Weighted
average average
Number exercise Number exercise
(000) price (000) price
Outstanding at 1 April 2005 1,554 £5.02 1,530 £5.06
Granted 122 £3.35 142 £4.80
Exercised –– ––
Expired (181) £3.63 ––
Forfeited (365) £5.18 (118) £5.21
Outstanding at 31 March 2006 1,130 £5.02 1,554 £5.02
Exercisable at 31 March 2006 738 £5.28 1,011 £4.82
The weighted average remaining contractual life for the share options outstanding as at 31 March 2006 is 3.1 years
(2005: 3.1 years).
The range of exercise prices for options outstanding at the end of the year was £3.35 to £5.865 (2005: £3.635 
to £5.865).
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED 63 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
36 PENSIONS
Defined contribution schemes
The Group makes payments to various defined contribution pension schemes, the assets of which are held in 
separately administered funds. In the United Kingdom the relevant scheme is the Acal Group Employee Pension 
Scheme (‘the Acal scheme’). Contributions by both employees and Group companies are held in externally invested
trustee-administered funds.
The Group contributes a specified percentage of earnings for members of the Acal scheme, and thereafter has no
further obligations in relation to the Acal scheme. The total cost charged to income in relation to the Acal scheme 
was £708,000 (2005: £640,000). Employer contributions in respect of overseas pension schemes were £733,000 
(2005: £741,000).
At the year end, 270 employees were active members of the scheme.
Defined benefit schemes
The acquisition of the Sedgemoor Group in June 1999 brought with it certain defined benefit pension schemes, the
principal one of which was the Sedgemoor Group Pension Fund (together ‘the Sedgemoor Scheme’). The Sedgemoor
Scheme is funded by the Company, provides retirement benefits based on final pensionable salary and its assets are 
held in a separate trustee-administered fund. 
Following the acquisition of Sedgemoor, the Sedgemoor Scheme was closed to new members. Shortly thereafter
employees were given the opportunity to join the Acal Scheme and future service benefits ceased to accrue to 
members under the Sedgemoor Scheme. 
Contributions to the Sedgemoor Scheme are determined in accordance with the advice of independent, professionally
qualified actuaries.
The latest actuarial valuation of the scheme was carried out as at 31 March 2006 by a qualified actuary. The main
actuarial assumptions used are set out as follows:
2006 2005
Rate of increase of salaries n/a n/a
Rate of increase of pensions in payment 3.0% 2.75%
Discount rate 5.0% 5.4%
Inflation assumption 3.0% 2.75%
The discount rate is based on over 15 year AA grade sterling corporate bond yields at the balance sheet date. The
expected rate of return on scheme assets is derived as an average, weighted according to the portfolio allocation at the
balance sheet date. The expected rates of return on each class of asset are shown below. Pensioner mortality
assumptions are based on the ‘92 series’ tables, issued by the Institute and Faculty of Actuaries, appropriate to the
member’s year of birth rated up by one year.
The amounts recognised in the income statement in respect of defined benefit schemes are as follows:
2006 2005
£m £m
Expected return on scheme assets 1.6 1.6
Interest cost on scheme liabilities (1.7) (1.8)
Other finance costs (note 10) (0.1) (0.2)
The net finance cost is reported within interest expense. 64 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
36 PENSIONS CONTINUED
The amounts taken to the statement of recognised income and expense are as follows:
2006 2005
£m £m
Actual return on scheme assets 4.9 2.3
Less: expected return on scheme assets (1.6) (1.6)
Other actuarial gains and losses (6.7) (0.7)
Actuarial gains/(losses) recorded in the statement of recognised income and expense (3.4) –
The fair value of assets and expected rates of return are used to determine the amounts recognised in the balance sheet
as follows:
2006 2006 2005 2005
£m £m
Equities 7.2% 16.3 7.4% 13.5
Gilts 4.2% 13.7 5% 13.4
Cash 4% 0.1 4% 0.2
Fair value of scheme assets 30.1 27.1
Present value of funded defined benefit obligations (39.2) (33.5)
Liability recognised in the balance sheet (9.1) (6.4)
Changes in the present value of the defined benefit obligation are as follows:
2006 2005
£m £m
Opening defined benefit obligation 33.5 32.8
Net interest cost 1.7 1.8
Actuarial losses on scheme liabilities 6.7 0.7
Settlements (1.0) –
Benefits paid (1.7) (1.8)
Closing defined benefit obligation 39.2 33.5
Changes in the fair value of the scheme assets are as follows:
2006 2005
£m £m
Opening fair value of plan assets 27.1 25.9
Expected returns on scheme assets 1.6 1.6
Actuarial gains on scheme assets 3.3 0.7
Contributions 0.7 0.7
Settlements (0.9) –
Benefits paid (1.7) (1.8)
Closing fair value of plan assets 30.1 27.1 65 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
36 PENSIONS CONTINUED
History of experience gains and losses
2006 2005 2004 2003 2002
£m £m £m £m £m
Fair value of scheme assets 30.1 27.1 25.9 21.1 25.2
Defined benefit obligations (39.2) (33.5) (32.8) (29.6) (27.3)
Deficit in the scheme (9.1) (6.4) (6.9) (8.5) (2.1)
Experience adjustments on scheme assets 3.3 0.7 2.4 (5.2) (2.2)
Experience adjustments on scheme liabilities (6.7) (0.7) (1.1) (2.0) (0.9)
37 RELATED PARTY DISCLOSURES
The Group’s principal subsidiaries are listed in the following table:
Group effective shareholding held
Country of incorporation by Parent by Subsidiary
Name and nature of business and registration Type of share Company Undertakings
Agency, marketing and distribution
Acal Controls Ltd England Ordinary Shares 100% –
Acal Electronics Ltd England Ordinary Shares – 100%
Acal Electronic Services Ltd England Ordinary Shares – 100%
Acal IT Ltd England Ordinary Shares 100% –
Acal Technology Ltd England Ordinary Shares – 100%
ATM Parts Company Ltd England Ordinary Shares 100% –
Computer Parts International Ltd England Ordinary Shares 71% –
EAF (UK) Ltd England Ordinary Shares – 100%
Stortech Electronics Ltd England Ordinary Shares – 100%
Vertec Scientific Ltd England Ordinary Shares – 100%
Acal SAS France Ordinary Shares – 100%
Mecodis SA France Ordinary Shares – 100%
EAF France SA France Ordinary Shares – 100%
Acal NV/SA Belgium Ordinary Shares – 100%
Acal Networking and Security NV/SA Belgium Ordinary Shares – 100%
Acal GmbH Germany Ordinary Shares – 100%
EAF Computer Service Supplies GmbH Germany Ordinary Shares – 100%
Acal AB Sweden Ordinary Shares – 100%
Acal Nederland BV Netherlands Ordinary Shares – 100%
Acal Italia Srl Italy Ordinary Shares – 100%
Acal Iberia SL Spain Ordinary Shares – 100%
Acal New York Inc USA Ordinary Shares – 100%
Management services
Acal Management Services Ltd England Ordinary Shares 100% –
All subsidiaries operate in their country of incorporation. All subsidiaries have a 31 March year end.
The following table provides the total amount of transactions which have been entered into with related parties for the
relevant year.
Related Party
Sales to Amounts owed
related by related
parties parties
£m £m
Associates
2005/6 0.2 –
2004/5 –0.2
All other activities and balances with related parties total less than £50,000 and have therefore not been disclosed. 66 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
37 RELATED PARTY DISCLOSURES CONTINUED
The Group considers key management personnel as defined under IAS 24 Related Party Disclosures to be the Directors
of the Group. Disclosures on directors’ remuneration are set out in the remuneration report on pages 24 to 27.
Associates
For details of the Group’s investments in associates see note 20.
Terms and conditions of transactions with related parties
All transactions with related parties were on an arms length basis. Outstanding balances at year-end are unsecured and
settlement occurs in cash.
Transactions with other related parties
Details of transactions with Directors are detailed in the remuneration report on pages 24 to 27.
38 EVENTS AFTER THE BALANCE SHEET DATE
A final dividend of 14.4p per share (2005: 14.4p) amounting to a dividend of £3.8 million (2005: £3.8 million) was declared
by the Directors at their meeting on 19 June 2006. These financial statements do not reflect this dividend payable.
As detailed in note 12, on 25 May 2006 a contract for the disposal of the Air Conditioning and Refrigeration business
was signed. The profits and net assets of this business are disclosed in note 12 under discontinued operations.
39 SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
Estimation uncertainty
Key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year. The most significant areas in which assumptions are made and estimates used are in determining:
• the useful economic lives of property, plant and equipment and intangible assets
• any impairment of assets including goodwill and inventories
• the quantification of provisions
• the fair values of assets acquired in a business combination
The Group’s accounting policies applied in respect of the above are set out in note 2 to these financial statements. 
40 EXPLANATION OF TRANSITION TO IFRSs
This is the first year that the Group is required to prepare its consolidated financial statements in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). The following disclosures are
required in the year of transition. The last financial statements under UK GAAP were for the year ended 31 March 2005
and the date of transition to IFRS was therefore 1 April 2004.
A reconciliation of equity at 1 April 2004, the date of transition to IFRS, and at 31 March 2005 was provided in the IFRS
restatement document issued on 28 September 2005. A reconciliation of profit for the year ended 31 March 2005 was
also provided within that document. A copy of the restatement document can be found on the Company’s website at
www.acalplc.co.uk. The figures below are unchanged except for the IAS 12 adjustment relating to deferred tax on the
retained earnings of associates and the reclassification of the revaluation reserve to retained earnings.
IAS 12 requires that a deferred tax liability be reflected to reflect the tax consequences that would follow from the
distribution of profits by the Company’s associates. The Company has recognised an additional £0.3 million liability at 
1 April 2004 and 31 March 2005. 67 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
40 EXPLANATION OF TRANSITION TO IFRSs CONTINUED
A summary of these reconciliations is set out below:
Reconciliation of earnings from UK GAAP to IFRS for the year ended 31 March 2005
Equity
Profits Profit holders
Operating from for the Minority of the
Turnover profit Interest associates Tax year interests parent
£m £m £m £m £m £m £m £m
As reported under UK GAAP 260.7 9.7 (2.0) 0.6 (3.8) 4.5 (0.4) 4.1
Cessation of goodwill amortisation – 3.0 – – – 3.0 – 3.0
Share-based payments adjustment – (0.1) – – – (0.1) – (0.1)
Reclassification of associates – – 0.1 (0.2) 0.1 – – –
Restated reporting under IFRS 260.7 12.6 (1.9) 0.4 (3.7) 7.4 (0.4) 7.0
Reconciliation of equity from UK GAAP to IFRS as at 31 March 2005
Share
Share Share Retained Merger scheme Translation Minority Total
capital premium earnings reserve reserve reserve interests equity
£m £m £m £m £m £m £m £m
As reported under UK GAAP 1.3 38.0 25.2 0.8 – – 1.2 66.5
Cessation of goodwill amortisation – – 3.0 –––– 3.0
Remove proposed dividends – – 3.8 –––– 3.8
Share-based payments adjustment – – (0.1) – 0.1 – – –
Holiday pay accrual – – (0.2) –––– (0.2)
Deferred tax adjustments – – (0.6) –––– (0.6)
Foreign currency translation differences – – (0.3) – – 0.3 – –
Restated reporting under IFRS 1.3 38.0 30.8 0.8 0.1 0.3 1.2 72.5
Reconciliation of equity from UK GAAP to IFRS as at 1 April 2004
Share
Share Share Retained Merger scheme Translation Minority Total
capital premium earnings reserve reserve reserve interests equity
£m £m £m £m £m £m £m £m
As reported under UK GAAP 1.3 37.8 26.8 0.8 – – 0.9 67.6
Remove proposed dividends – – 3.7 –––– 3.7
Holiday pay accrual – – (0.2) –––– (0.2)
Deferred tax adjustments – – (0.6) –––– (0.6)
Restated reporting under IFRS 1.3 37.8 29.7 0.8 – – 0.9 70.5
The transition to IFRS resulted in the following significant changes in accounting policies:
a) IFRS 3 Business combinations
Under UK GAAP , goodwill which arose on acquisitions after 31 March 1998 was capitalised as an intangible asset in the
Consolidated Balance Sheet and amortised over its estimated economic life of 20 years. IFRS 3 prohibits the amortisation
of goodwill, requiring goodwill to be measured at cost less impairment losses and tested for impairment annually.
Hence under IFRS the Group will carry goodwill on the balance sheet subsequent to initial recognition at cost less any
accumulated impairment losses. Goodwill will be tested for impairment annually, or more frequently if the
circumstances indicate that impairment may have occurred.
The effect of the change is an increase in equity and intangible assets as at 31 March 2005 of £3.0 million. The 
change does not affect equity at 1 April 2004. Profits before tax for the year ended 31 March 2005 are increased by 
£3.0 million. There is no associated tax impact. 68 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
40 EXPLANATION OF TRANSITION TO IFRSs CONTINUED
b) IFRS 2 Share-based payments
Under UK GAAP no charge was made in the Consolidated Profit and Loss Account in relation to the Group’s share
option schemes. 
Under IFRS, the fair value of employee share-based rewards are calculated and charged to the Consolidated Income
Statement on a straight line basis over the expected vesting period. This charge is adjusted to reflect the expected and
actual levels of vesting and any changes to the vesting period that arise from non-market based performance conditions.
The Group has taken advantage of the exemption permitted under IFRS 1 in respect of equity-settled awards and IFRS 2
has only been applied to options awarded on or after 7 November 2002 that had not vested on or before 1 January 2005.
The effect on profit before tax for the year ended 31 March 2005 is a charge of £0.1 million. The associated tax impact
is not significant. There is no impact on equity at 31 March 2005.
c) IAS 10 Events after the balance sheet date
Previously under UK GAAP , Group dividends declared after the balance sheet date have been recognised as a liability.
Under IFRS, dividends declared after the balance sheet date but before the financial statements are authorised for issue
are not recognised as a liability at the balance sheet date. 
The effect of the change is an increase in equity of £3.7 million at 1 April 2004 and £3.8 million at 31 March 2005. The
change does not affect profit or loss reported under IFRS for the financial year ended 31 March 2005.
d) IAS 19 Employee benefits
Under IAS 19, benefits which fall due within 12 months, such as holiday pay, require recognition. As a consequence,
the Group is now required to provide for unused holiday entitlements.
The effect of the change is a decrease in equity as at 1 April 2004 and 31 March 2005 of £0.2 million. The change does
not affect profit before tax for the year ended 31 March 2005.
e) IAS 12 Income taxes
Under IFRS, deferred taxation is to be provided for almost all differences between the balance sheet amounts of assets
and liabilities and their corresponding tax base. Previously, under UK GAAP , deferred tax was provided for timing
differences only. 
The creation of a deferred tax liability for revaluation gains was not permitted under UK GAAP , however, it is required
under IAS 12. The effect of the change is a decrease in equity as at 1 April 2004 and 31 March 2005 of £0.3 million.
The change does not affect profit after tax for the year ended 31 March 2005.
As noted above, IAS 12 requires that a deferred tax liability be reflected to reflect the tax consequences that would
follow from the distribution of profits by the Company’s associates. The Company has recognised an additional £0.3
million liability at 1 April 2004 and 31 March 2005.
f) Financial instruments: application of IAS 32 and IAS 39
The Group adopted IAS 32 and IAS 39 with effect from 1 April 2005, and as permitted by IFRS 1 the Group has not
restated comparative information. The new accounting policies as applied for the year ended 31 March 2006 are set
out in note 2.
Under the previous accounting policy, in accordance with UK GAAP , investments were carried at cost. Had IAS 32 and
IAS 39 been applied from 1 April 2004 available for sale investments would have been carried at fair value.  ACAL PLC
COMPANY FINANCIAL STATEMENTS
year ended 31 March 2006
69 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006 70 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
REPORT OF THE AUDITORS
INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF ACAL PLC
We have audited the parent company financial statements of Acal plc for the year ended 31 March 2006 which comprise 
the Balance Sheet and the related notes 1 to 13. These parent company financial statements have been prepared under the
accounting policies set out therein. We have also audited the information in the Directors’ Remuneration Report that is
described as having been audited. 
We have reported separately on the group financial statements of Acal plc for the year ended 31 March 2006.
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 auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or
for the opinions we have formed.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
The directors are responsible for preparing the Annual Report, the Directors’ Remuneration Report and the parent company
financial statements in accordance with applicable United Kingdom law and Accounting Standards (United Kingdom Generally
Accepted Accounting Practice) as set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the parent company financial statements and the part of the Directors’ Remuneration Report to be
audited 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 parent company financial statements give a true and fair view and whether 
the parent company financial statements and the part of the Directors’ Remuneration Report to be audited have been properly
prepared in accordance with the Companies Act 1985. We also report to you if, in our opinion, the Directors’ Report is not
consistent with the parent company financial statements, if 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 parent company
financial statements. The other information comprises only the Directors’ Report, the Chairman’s Statement, the Chief Executive’s
Review, the Finance Director’s Review and the Board Report on Corporate Governance. We consider the implications for our
report if we become aware of any apparent misstatements or material inconsistencies with the parent company financial
statements. Our responsibilities do not extend to any other information.
BASIS OF AUDIT OPINION
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices
Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the parent company
financial statements and the part of the Directors’ Remuneration Report to be audited. It also includes an assessment of the
significant estimates and judgments made by the directors in the preparation of the parent company financial statements, and
of whether the accounting policies are appropriate to the 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 parent company financial statements and the
part of the Directors’ Remuneration Report to be audited 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
parent company financial statements and the part of the Directors’ Remuneration Report to be audited.
OPINION
In our opinion :
• the parent company financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted
Accounting Practice, of the state of the company’s affairs as at 31 March 2006; and
• the parent company financial statements and the part of the Directors’ Remuneration Report to be audited have been
properly prepared in accordance with the Companies Act 1985.
Ernst & Young LLP
Registered Auditors
London 19 June 2006
Note:
• The maintenance and integrity of the Acal plc website is the responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to 
the financial statements since they were initially presented on the website.
• Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in 
other jurisdictions. 71 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
COMPANY BALANCE SHEET
at 31 March 2006
2006 2005
restated
notes £m £m
Fixed assets
Investments 5 116.6 116.5
Current assets
Debtors 6 11.6 7.9
Cash at bank and in hand 0.6 0.3
Total current assets 12.2 8.2
Creditors: Amounts falling due within one year 7 (29.2) (18.1)
Net current liabilities (17.0) (9.9)
Total assets less current liabilities 99.6 106.6
Creditors: Amounts falling due after more than one year 7 (12.0) (20.0)
Net assets 87.6 86.6
Capital and reserves
Called up share capital 9 1.3 1.3
Share premium account 10 38.0 38.0
Merger reserve 10 3.0 3.0
Profit and loss account 10 45.3 44.3
Equity shareholders’ funds 87.6 86.6
These financial statements were approved by the Board of Directors on 19 June 2006 and signed on its behalf by:
R J Moon J S Virdee
Chairman Finance Director 72 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
1 BASIS OF ACCOUNTING
The financial statements are prepared under the historical cost convention and in accordance with applicable UK
accounting standards.
The Company has taken advantage of the provisions of FRS 1 (revised) which exempts companies which are part of a
group for which a consolidated cash flow statement is prepared, from preparing a cash flow statement. The required
consolidated cash flow statement has been included within the consolidated financial statements of the Group.
2 CHANGES IN ACCOUNTING POLICIES
Post balance sheet events
In preparing the financial statements the Company has adopted FRS 21 ‘Events after the balance sheet date’. The
adoption of FRS 21 has resulted in a change in accounting policy for dividends. Dividends are now recognised in the
year in which the dividends are declared and approved. Previously dividends were provided for in the year when profits
on which they were declared by the Directors. The change in accounting policy has resulted in a prior year adjustment.
Shareholders’ funds have been decreased by £3.7 million at 1 April 2004 and the retained profit for the year ended 
31 March 2005 has increased by £0.1 million.
Share-based payments
In preparing the financial statements the Company has also adopted FRS 20 ‘Share-based payments’. Although the
Company does not incur a charge under this standard, the issuance by the Company to its subsidiaries of a grant over
the company’s options, represents additional capital contributions by the Company in its subsidiaries. The additional
capital contribution is based on the fair value of the grant issued allocated over the underlying grant’s vesting period.
The change in accounting policy resulted in an increase in investments in subsidiaries and shareholders’ equity of 
£0.1 million at 31 March 2005 (2004: nil).
In preparing the financial statements the Company has also adopted FRS 23 ‘The effects of Changes in Foreign
Exchange Rates’, FRS 25 ‘Financial Instruments: Disclosure and Presentation’, FRS 26 ‘Financial Instruments:
Measurement’, FRS 28 ‘Corresponding amounts’. The adoption of these standards has had no effect on the profit for
the year ended 31 March 2005 or 31 March 2006.
The corresponding amounts in these financial statements are restated in accordance with the new policies, other than
those covered by the exceptions permitted by FRS 25 and FRS 26. FRS 25 and FRS 26 permit the corresponding
amounts not to be restated and the Company has adopted this approach.
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Income recognition
Dividend income from subsidiary and associated undertakings is recognised in the profit and loss account on receipt of
the cash.
Fixed asset investments
Investments in subsidiary and associated undertakings are stated initially at cost being the fair value of the consideration
given and including directly attributable transaction costs. The carrying values are reviewed for impairment if events or
changes in circumstances indicate the carrying values may not be recoverable. 
Financial assets
Investments are initially recognised at cost, being the fair value of the consideration given and including directly
attributable transaction costs associated with the investment. 
After initial recognition, investments in equity shares are treated as available for sale financial assets and are measured
at their fair value with any gains or losses recognised in equity. When the investment is derecognised or impaired, the
cumulative gain or loss previously reported in equity is included in the income statement. 
Investments in equity instruments that do not have a quoted market price in an active market and whose fair value can
not be reliably valued are measured at cost. 
At each balance sheet date, the Group reviews the carrying value of its assets to determine whether there is any indication
that the assets have suffered an impairment loss. If any such indication exists or when annual testing for an asset is
required, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any.
NOTES TO THE COMPANY FINANCIAL STATEMENTS 73 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE COMPANY FINANCIAL STATEMENTS
4 PROFIT OF THE PARENT COMPANY
The profit of the parent company for the financial year amounted to £6.6 million (2005: £9.4 million). By virtue of
section 230(4) of the Companies Act 1985, the Company is exempt from presenting a separate profit and loss account.
5 FIXED ASSET INVESTMENTS
Subsidiary Associated
undertakings undertakings Other Total
£m £m £m £m
At 1 April 2004 114.0 2.1 0.3 116.4
Share-based payments 0.1 – – 0.1
At 31 March 2005 – restated 114.1 2.1 0.3 116.5
Share-based payments 0.1 – – 0.1
At 31 March 2006 114.2 2.1 0.3 116.6
Details of the principal subsidiary and associated undertakings are provided in notes 37 and 20 of the Group accounts.
6 DEBTORS
2006 2005
£m £m
Amounts falling due within one year:
Amounts owed by subsidiary undertakings 11.1 7.3
Corporation tax 0.5 0.6
11.6 7.9
7 CREDITORS
2006 2005
£m £m
Amounts falling due within one year:
Bank loans and overdrafts 5.7 1.2
Amounts owed to subsidiary undertakings 23.2 16.6
Accruals and deferred income 0.3 0.3
29.2 18.1
Amounts falling due after more than one year:
Unsecured borrowings:
Term loans at market interest rates:
Repayable 1-2 years 12.0 7.0
Repayable 2-5 years – 13.0
12.0 20.0
Bank loans and overdrafts falling due within one year include a £5 million term loan based on LIBOR plus a variable
margin. This loan is repayable in full on 31 October 2006.
The term loan falling due after more than one year is based on LIBOR plus a variable margin. This loan is repayable in
full on 30 September 2007.
8 DERIVATIVES AND FINANCIAL INSTRUMENTS
The Company’s principal financial instruments comprise bank loans, overdraft facilities, bank balances and amounts due
from its subsidiary companies. The main purpose of these financial instruments is to provide finance for the Company
and its subsidiaries’ operations.  74 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED
8 DERIVATIVES AND FINANCIAL INSTRUMENTS CONTINUED
The main risks arising from the Company’s financial instruments are interest rate risk, liquidity risk and credit risk.
Interest rate risk
The Company borrows at floating rates of interest. The Company has not hedged against interest rate risk.
Credit risk
With respect to credit risk relating to cash and cash equivalents the Company’s exposure to credit arises from default of
the counter party, with the maximum exposure equal to the carrying amount of these instruments.
Foreign currency risk
The Company has not hedged against foreign currency exposure due to its minimal exposure to foreign currency
movements as its business is conducted primarily in UK sterling.
Market risk
At 31 March 2006, £17.7 million (2005: £21.2 million) of the Company’s revolving credit and overdraft facilities has
been drawn. These borrowings are at a floating interest rate of LIBOR plus margin and are therefore subject to market
risk through interest rate fluctuations. A 1% increase in LIBOR would increase the interest charge, and reduce the
Company profit before taxation, by £177,000 (2005: £212,000).
Interest rate risk
The following table sets out the carrying amount, by maturity, of the Company’s financial instruments that are exposed
to interest rate risk:
Year ended 31 March 2006
Within 1-2 2-3 3-4 4-5 More than
1 year years years years years 5 years Total
£m £m £m £m £m £m £m
Floating rate
Cash at bank and in hand 0.6 – – – – – 0.6
Amounts owed by subsidiary undertakings 11.1 – – – – – 11.1
Amounts owed to subsidiary undertakings (23.2) – – – – – (23.2)
Bank overdrafts (0.7) – – – – – (0.7)
Term bank loans (5.0) (12.0) – – – – (17.0)
(17.2) (12.0) – – – – (29.2)
Year ended 31 March 2005
Within 1-2 2-3 3-4 4-5 More than
1 year years years years years 5 years Total
£m £m £m £m £m £m £m
Floating rate
Cash at bank and in hand 0.3 – – – – – 0.3
Amounts owed by subsidiary undertakings 7.3 – – – – – 7.3
Amounts owed to subsidiary undertakings (16.6) – – – – – (16.6)
Bank overdrafts (1.2) – – – – – (1.2)
Term bank loans – (7.0) (13.0) – – – (20.0)
(10.2) (7.0) (13.0) – – – (30.2)
Due to the short term trading nature of debts due from/due to subsidiary undertakings no interest is charged.
The Company borrows in UK sterling at LIBOR or base rates plus a margin. 75 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
8 DERIVATIVES AND FINANCIAL INSTRUMENTS CONTINUED
Borrowing facilities
The Company has revolving credit facilities with two banks which provides available facilities of £35 million. (2005: £35
million). Additionally, the Company has overdraft facilities of £11.75 million (2005: £10.25 million) to support the future
activities of the business. 
The available but undrawn committed facilities at 31 March in respect of which all conditions had been met at that date
are as follows:
Year ended 31 March 2006
Within 1-2 2-3 3-4 4-5 More than
1 year years years years years 5 years Total
£m £m £m £m £m £m £m
Unsecured banking facilities 10.0 25.0 –––– 35.0
Drawn bank loans (5.0) (12.0) ––––(17.0)
Bank overdrafts 11.0 ––––– 11.0
16.0 13.0 –––– 29.0
Year ended 31 March 2005
Within 1-2 2-3 3-4 4-5 More than
1 year years years years years 5 years Total
£m £m £m £m £m £m £m
Unsecured banking facilities – 10.0 25.0 – – – 35.0
Drawn bank loans – (7.0) (13.0) – – – (20.0)
Bank overdrafts 9.0 ––––– 9.0
9.0 3.0 12.0 – – – 24.0
Fair values
Set out below is a comparison by category of book values and fair values of all the Company’s financial assets and
liabilities as at 31 March:
Book value Fair value
2006 2005 2006 2005
£m £m £m £m
Primary financial instruments
Financial liabilities
Bank overdrafts 0.7 1.2 0.7 1.2
Amounts owed to subsidiary undertakings 23.2 16.6 23.2 16.6
Bank loans 17.0 20.0 17.0 20.0
Financial assets
Cash at bank and in hand 0.6 0.3 0.6 0.3
Amounts owed by subsidiary undertakings 11.1 7.3 11.1 7.3
9 SHARE CAPITAL
Allotted, Allotted,
called up called up 
and fully and fully
Authorised Authorised paid paid
Number £m Number £m
At 1 April 2004 35,000,000 1.75 26,366,854 1.3
Issued – – 50,000 –
At 31 March 2005 and 31 March 2006 35,000,000 1.75 26,416,854 1.3
NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED 76 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED
9 SHARE CAPITAL CONTINUED
At 31 March 2006 there were outstanding options for employees to purchase up to 1,130,050 (2005: 1,554,000)
ordinary shares of 5p each between 2006 and 2012 at prices ranging from £3.35 per share to £5.865 per share. During
the year to 31 March 2006 no options on ordinary shares were exercised by employees under the terms of the various
share option schemes (2005: 50,000).
10 RECONCILIATION OF SHAREHOLDERS’ FUNDS AND MOVEMENTS ON RESERVES
Share
Called up premium Merger Profit and
share capital account reserve loss account Total
£m £m £m £m £m
At 1 April 2004 – as previously reported 1.3 37.8 3.0 36.7 78.8
Prior year adjustments
Adoption of FRS 20 –––––
Adoption of FRS 21 – – – 3.7 3.7
At 1 April 2004 – as restated 1.3 37.8 3.0 40.4 82.5
Profit for the year – – – 9.4 9.4
Dividends to shareholders (restated) – – – (5.6) (5.6)
Issue of shares – 0.2 – – 0.2
Share-based payments – – – 0.1 0.1
At 31 March 2005 1.3 38.0 3.0 44.3 86.6
Profit for the year – – – 6.6 6.6
Dividends to shareholders – – – (5.7) (5.7)
Share-based payments – – – 0.1 0.1
At 31 March 2006 1.3 38.0 3.0 45.3 87.6
11 RELATED PARTIES
The Company has taken advantage of the exemption given in FRS 8 not to disclose transactions with other 
Group companies.
12 SHARE-BASED PAYMENTS
For detailed disclosures of share-based payments refer to Acal plc consolidated accounts, note 35.
13 CONTINGENT LIABILITIES
The parent company has given guarantees and offset arrangements to support bank facilities made available to
subsidiary undertakings. As at 31 March 2006 the relevant subsidiary bank borrowings amounted to £2.7 million 
(2005: £2.3 million). 77 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
2006 2005 2004 2003 2002
(IFRS) (IFRS) (UK GAAP) (UK GAAP) (UK GAAP)
£m £m £m £m £m
Group income statement
Turnover – continuing operations 257.0 243.7 268.4 272.1 297.0
Profit before tax, goodwill and exceptionals 8.6 9.9 12.6 15.6 16.9
Amortisation of goodwill – – (2.9) (2.8) (2.6)
Exceptionals (0.2) – (0.6) 0.6 –
Profit before tax 8.4 9.9 9.1 13.4 14.3
Tax (2.7) (3.3) (4.2) (5.4) (5.7)
Profit after tax from continuing operations 5.7 6.6 4.9 8.0 8.6
Discontinued operations 0.9 0.8–––
Profit for the year 6.6 7.4 4.9 8.0 8.6
Attributable to:
Equity holders of the parent 6.0 7.0 4.7 8.0 8.6
Minority interests 0.6 0.4 0.2 – –
Group balance sheet
Net debt 6.5 12.3 15.2 13.4 12.9
Equity shareholders’ funds 69.9 71.3 66.7 68.0 69.9
Statistics
Earnings per ordinary share 22.3p 26.6p 17.9p 30.7p 33.2p
Earnings per share before goodwill amortisation 22.3p 26.6p 29.0p 41.3p 43.2p
Dividends per share – relating to the period 21.6p 21.6p 21.0p 20.1p 18.3p
Return on capital employed* 37% 35% 40% 49% 48%
* Return on capital employed is based on profit before interest, goodwill amortisation and tax and net tangible assets adding back net debt. 
For 2005 and 2006, the figures reported relate to the continuing operations.
FIVE YEAR RECORD 78 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the Twentienth Annual General Meeting of Acal plc will be held at the Company’s offices, 
2 Chancellor Court, Occam Road, Surrey Research Park, Guildford, GU2 7AH on 8 August 2006 at 11.00 am for the
following purposes:
Resolutions (being ordinary resolutions unless otherwise stated):
1 To receive and adopt the report of the Directors and the financial statements for the year ended 31 March 2006.
2 To approve the final dividend.
3 To approve the Directors Remuneration Report as set out on pages 24 to 27 of the Annual Report and Accounts.
4 To re-elect Mr A J Laughton as a director of the Company.
5 To re-elect Mr G J Williams as a director of the Company.
6 To consider and if thought fit pass the following resolution: 
“That Ernst & Young LLP be and is hereby appointed auditor of the Company to hold office from the conclusion of
this meeting until the conclusion of the next general meeting at which accounts are laid before the Company at a
remuneration to be agreed by the Directors.”
7 To consider and if thought fit pass the following resolution which will be proposed as a special resolution:
“That subject to the provisos hereto the Company be and is hereby generally authorised to purchase any of its own
ordinary shares of 5p each by a market purchase or purchases (as defined by Section 163 of the Companies Act
1985) provided always that this power shall:
i be limited to a purchase or purchases up to an aggregate of 2,600,000 issued ordinary shares of 5p each of 
the Company;
ii be limited to a purchase or purchases at a price per ordinary share (exclusive of dealing and other incidental
costs and stamp duty) not below 5p and not above an amount equal to 105 per cent of the average of the
middle market quotations as derived from the Financial Services Authority’s Daily Official List for the five
business days immediately preceding the day on which the ordinary share is purchased; and
iii unless renewed, varied or revoked by the Company in general meeting expire on the earlier of the next Annual
General Meeting of the Company or 15 months from the passing of this resolution and the Company may
make a purchase of its own shares in accordance with this authority after the expiry of the said time limit
imposed above where the contract of purchase is concluded before such authority expires and the Company is
hereby permitted to make a contract of purchase which would or might be executed wholly or partly after the
authority shall have expired.”
8 To consider and if thought fit pass the following resolution: 
“That the Directors be generally and unconditionally authorised for the purposes of Section 80 of the Companies
Act 1985 to allot relevant securities (as defined in the said section) up to an aggregate nominal amount of
£440,000 such authority to expire on 8 August 2011 save that the Company may at any time before such expiry
make an offer or agreement which would or might require relevant securities to be allotted after such expiry and
the Directors may allot relevant securities in pursuance of such an offer or agreement as if the power conferred
hereby had not expired and provided further that the authority conferred by this resolution shall be in substitution
for any prior authorities conferred on the Directors to allot relevant securities save to the extent that any offer or
agreement which would or might require relevant securities to be allotted pursuant thereto shall have been made.”
9 To consider and if thought fit pass the following resolution which will be proposed as a special resolution:
“That subject to the passing of resolution 8 to be proposed at the Annual General Meeting of the Company to be held
on 8 August 2006 the Directors be empowered pursuant to Section 95 of the Companies Act 1985 to allot equity
securities (as defined in Section 94(2) of the Companies Act 1985) pursuant to the authority conferred by resolution 9
above as if Section 89(1) of the Companies Act 1985 did not apply to any such allotment provided that this power
shall be limited to:
a the allotment of equity securities in connection with a rights issue in favour of holders of ordinary shares and other
persons entitled to participate by way of rights where the equity securities attributable to the interests of all holders
of ordinary shares and such other persons’ holdings (or as appropriate to the number of such shares which such
other persons are for these purposes deemed to hold) are proportionate (as nearly as may be) to the respective
numbers of ordinary shares held by them but subject to such exclusions or other arrangements as the Directors may
deem necessary or expedient for the purpose of dealing with fractional entitlements or legal or practical problems
under the laws of, or the requirements of, any regulatory body or any stock exchange, in any territory; and 79 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
NOTICE OF ANNUAL GENERAL MEETING CONTINUED
b the allotment (otherwise than pursuant to paragraph (a) of this resolution) of equity securities up to an aggregate
nominal amount of £66,000;
and shall expire at the conclusion of the Annual General Meeting of the Company next following the meeting at
which this resolution is passed save that the Company may before such expiry make an offer or agreement which
would or might require equity securities to be allotted for cash after such expiry and the Directors may allot equity
securities to such offer or agreement as if the power conferred hereby had not expired and shall be in substitution
for any prior authorities conferred upon the Directors to allot equity securities save to the extent that any offer or
agreement which would or might require equity securities to be allotted for cash pursuant thereto shall have 
been made.”
By order of the Board
N Rowe
Secretary
7 July 2006
Notes
Any member of the Company entitled to attend and vote at the above meeting is entitled to appoint one or more proxies to attend and,
on a poll, vote instead of him. A proxy need not be a member of the Company. A form of proxy is enclosed and this must be lodged at
the Registered Office of the Company not less than 48 hours before the time appointed for the meeting.
BUS
STATION
RAILWAY
STATION
CATHEDRAL
HOSPITAL
HOTEL
A3
A323
A31
THE SURREY
RESEARCH PARK
A25 Occam Road
Gill Avenue
A322
 to Portsmouth
to London  The 20th AGM of ACAL Plc will be
held at the company’s offices, at:
2 Chancellor Court,
Occam Road,
Surrey Research Park,
Guildford GU2 7AH 80 ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
PRINCIPAL LOCATIONS
Country Company/division Locations
ELECTRONIC COMPONENTS
United Kingdom Acal Technology Ltd Wokingham, Berkshire
Acal Radiatron Egham, Surrey
Stortech Electronics Ltd Harlow, Essex
Acal TC Leicester
Belgium Acal NV/SA Brussels
France Acal SAS Paris
Germany Acal GmbH Flein/Heilbronn
Munich
Hamburg
Italy Acal Italia Srl Milan
Netherlands Acal Nederland BV Eindhoven
Sweden Acal AB Stockholm
Norway Acal AB Honefoss
Finland Acal AB Helsinki
Denmark Acal AB Copenhagen
Spain Acal Iberia SL Madrid
IT PARTS SERVICES
United Kingdom EAF (UK) Ltd Wokingham, Berkshire
ATM Parts Company Ltd Camberley, Surrey
Computer Parts International Ltd Nottingham
Germany EAF Computer Service Supplies GmbH Goch
IT SOLUTIONS
United Kingdom Acal IT Ltd Church Crookham, Hampshire
Vertec Scientific Ltd Aldermaston, Berkshire
Belgium Acal NV/Headway Technology Brussels
Acal Networking & Security NV SA Brussels
France Acal SAS/Headway Technology Paris
Germany Acal GmbH/Headway Technology Munich
Hanover
Netherlands Acal Nederland BV/Headway Technology Eindhoven
Scandinavia Acal AB Copenhagen
Further details of the Group’s locations can be found on the Acal plc website
www.acalplc.co.uk Highlights 1
Acal’s business 2
Global reach 4
Chairman’s statement 6
Chief Executive’s review 8
Finance Director’s review 12
Directors 16
Corporate information 17
Board report on corporate governance 20
Directors’ remuneration report 24
Corporate social responsibility 28
Statement of directors’ responsibilities 29
Report of the auditors – group 31
Consolidated income statement 32
Consolidated balance sheet 33
Consolidated cash flow statement 34
Consolidated statement of recognised income
and expense 35
Notes to the group financial statements 36
Report of the auditors – company 70
Company balance sheet 71
Notes to the company financial statements 72
Five year record 77
Notice of annual general meeting 78
Principal locations 80
Acal plc is a leading pan-European value-added distributor
providing specialist design-in sales and marketing services for
international suppliers.
The business provides opportunities for growth, a high return on
capital employed and a positive cashflow. The strategic plan is to
invest cashflow in organic growth and in similar complementary
business opportunities. This will enhance shareholder value and
utilise the skills of the Group, providing career development for
employees and a dynamic organisation to promote better service
for both suppliers and customers.
CONTENTS
Spain
Italy
Finland
Norway
Denmark
Belgium
Netherlands
Germany
UK
ELECTRONIC COMPONENTS
IT PARTS SERVICES
IT SOLUTIONS
Bangalore
Shanghai
Singapore
ASSOCIATE COMPANY OFFICES
Sweden
Taiwan
Hong Kong
Bangkok
Muntinlupa City
Selangor
Johar Bahru
Penang
Shenzhen
Suzhou
WORLDWIDE LOCATIONS
France 2 Chancellor Court
Occam Road
Surrey Research Park
Guildford
Surrey GU2 7AH
Telephone +44 (0)1483 544500
Facsimile +44 (0)1483 544550
Email info@acalplc.co.uk
WWW.ACALPLC.CO.UK
ACAL plc ANNUAL REPORT AND ACCOUNTS for the year ended 31 March 2006
ANNUAL REPORT AND ACCOUNTS
for the year ended 31 March 2006
DISTRIBUTION OF TECHNOLOGY…