A GLOBAL PROVIDER 
OF CONSULTING AND 
SOFTWARE SOLUTIONS
KBC Advanced Technologies plc
Annual Report 2011 Visit this 
report online
ar11.kbcat.com
What’s inside
A GLOBAL PROVIDER OF CONSULTING 
AND SOFTWARE SOLUTIONS
KBC is a leading independent solutions provider to 
the global energy and process industries. We generate 
shareholder value by providing strategic solutions, 
software products and sustainable performance 
improvements for our clients.
Our competitive advantage lies in our ability to optimally 
combine our consulting expertise with our software 
products and services.
Providing 
complete solutions
Software
– Process simulation 
– Specialised unit models 
–  Energy efﬁciency and 
utilities optimisation
Consulting
– Strategic solutions 
– Operating solutions 
– Organisational solutions 
– Environmental solutions  OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
1 KBC Advanced Technologies plc Annual Report 2011
Overview
 IFC About us
 01 Our highlights
 02 Our business
04 Our markets
 06 Chairman’s statement
Business review
08 Chief Executive’s review
12 Financial review
15 Principal risks and risk management
Corporate governance
16  Board of Directors
17 Executive committee
18 Corporate governance statement
21 Directors’ remuneration report
25 Directors’ report
Financial statements
28 Independent auditors’ report
29 Group income statement
29 Group statement of comprehensive income
30 Group statement of changes in equity
31 Group balance sheet
32 Group cash ﬂow statement
33 Notes to the ﬁnancial statements
52 Company balance sheet
53 Notes to the Company ﬁnancial statements
57 Notice of Annual General Meeting
 IBC Shareholder information
 IBC Key dates
  
–  Excellent year against a difﬁcult economic backdrop 
–  Good ﬁnancial performance
 –  Group revenue increased by 5% to £55.7m
 –  Underlying proﬁt before tax* increased by 20% to £5.9m, 
reported proﬁt before tax up 35% to £4.9m
 –  Underlying earnings per share up 27% to 7.1p, 
basic earnings per share up 48% to 5.9p
 –  Strong cash generation, year-end cash balances 
increased by 29% to £5.8m
–  Total dividend of 2.25p, an increase of 22%
–  Group beneﬁting from
 –  World oil price volatility
 –  Increasing oil demand in developing world
 –  Pressure on reﬁning margins in North America and Europe
–  Increasing demand from adjacent sectors of the energy 
industry, such as petrochemicals, gas/LNG, upstream 
oil and gas
–  New version of Petro-SIM
™
 software released
–  Further growth expected in 2012
Note *Underlying proﬁt before tax excludes the impact of the carry forward 
of software development costs, their amortisation, the amortisation of acquired 
intangible assets, arbitration costs, one-off redundancy costs and exceptional 
bad debt provisions. See note 5 to the ﬁnancial statements.
OVERVIEW
Our highlights
Revenue (£m)
£55.7m +5%
07 08 09 10 11
Underlying proﬁt before tax (£m)
£5.9m +20%
07 08 09 10 11
£55m
£55m
£55m
£55m
£55m
Underlying earnings per share (pence)
7.1p +27%
07 08 09 10 11
£6m
£4m
£0m
£2m
8p
4p
0p
6p
2p
3.7
6.9 6.8
5.6
7.1
3.2
5.7 5.7
4.9
5.9
£60m
£40m
£0m
£20m
38.1
52.8 52.6 53.1
55.7 2 KBC Advanced Technologies plc Annual Report 2011
OVERVIEW
Our business
We are at the leading edge of technology in our selective 
ﬁelds and provide an attractive value proposition for our 
clients throughout the asset life cycle.
OUR COMPETITIVE ADVANTAGE
CONSULTING
Providing value to the client
With a single global pool of 
consultants, KBC operates within 
four practice disciplines: 
 – Strategic Consulting
 – T echnical Consulting
 – Organisational Consulting 
 – Environmental Consulting.
OUR GOAL... ...IS ACHIEVED BY APPLYING BOTH STRATEGIC AND ENGINEERING EXPERTISE, 
AND CUTTING EDGE TECHNOLOGY...
Our goal is to 
enable companies to 
manage risk while 
maximising value 
from their assets
SOFTWARE
Delivering world-class 
technology
KBC’s reactor simulation models 
have been recognised as the 
standard in reﬁneries for decades. 
Our process simulation platform, 
Petro-SIM™, enables reﬁnery-wide 
modelling. These products, 
plus KBC’s energy and utilities 
optimisation software, help clients 
operate facilities more proﬁtably 
and manage environmental and 
operational risks.
Our solutions
With a global reach, proven methodologies, industry-leading 
tools and software models, our consultants consistently 
demonstrate innovative and creative thinking, ﬂexibility and 
a penchant for identifying and implementing improvements 
which result in tangible value to our clients. OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
3 KBC Advanced Technologies plc Annual Report 2011
...FOR A GLOBAL AND GROWING CLIENT BASE
Clients we serve
...ACROSS A RANGE OF INDUSTRIES IN THE GLOBAL 
ENERGY AND PROCESS INDUSTRIES...
REFINING
Worked for
23 of the 25 
largest  
reﬁners
CHEMICAL
Worked for
7 of the 9 
largest 
chemical 
companies
GAS
Worked on 
gas projects 
in all three 
KBC regions 
INVESTMENT 
COMMUNITY 
Supported 
investment 
decisions 
totalling 
US$44bn
KBC serves the energy and related industries, 
providing consulting and software solutions 
to improve return on capital employed.
300+ clients
70 countries
350+ sites
OPERATING  
SOLUTIONS
Energy, process and 
reliability optimisation; 
creating greater return 
on existing assets; 
working capital reduction; 
improvement in throughput.
ORGANISATIONAL 
SOLUTIONS
Harnessing the potential 
of human capital including 
accelerated capability 
development; knowledge 
and skills transfer; 
intellectual capital retention; 
certiﬁcation and training; 
corporate social 
responsibility strategies.
ENVIRONMENTAL 
SOLUTIONS
Environmental and social 
impact assessments; 
rationalisation of 
compliance expenditure; 
advice on compliance with 
equator principles; 
advice on sustainability.
STRATEGIC  
SOLUTIONS
Investment support; 
business planning and 
portfolio value creation 
strategies; transaction 
advice and due diligence; 
feasibility studies.
+ clie + +
0 c co r nt
client
c c
ie c
0 co
+ c clie + 
7
c n
+ i
+ 
trie es
0+ sit tes 3 35 50 3
c
0
In 2011, KBC: OVERVIEW
Our markets
KBC maintains a balanced 
portfolio approach, leveraging 
key accounts and relationships to 
expand business while developing 
new relationships.
Five key drivers most relevant to 
our business are: oil and gas demand 
growth, the pressure on reﬁning margins 
as a result of price differentials in oil 
products and crude, oil price volatility, 
sector M&A activity, and the availability 
of experienced engineering staff. 
These drivers were all positive during 
the period, offering continuing 
opportunities for KBC to grow its business.
A GLOBAL CLIENT BASE
AMERICAS
40%
Market overview
Client activity in the Americas continues to align with regional proﬁt drivers.  
In North America there are three major themes. Firstly, US mid-continent reﬁners 
have beneﬁted from low crude oil costs due to oversupply and consequently 
are starting to invest in capital projects and operational efﬁciency improvements. 
Secondly, coastal US reﬁneries are under severe pressure from imports and 
oversupply and this has driven many clients to consider full or partial closures 
along with other strategic options. Third, the oil sands activity in western Canada 
continues to be strong which translates to large capital project activity plus 
increasing export of crude oil to the US market. Latin America continues to 
experience rapid growth for KBC clients due to regional GDP growth and 
the desire to improve self-sufﬁciency. The US shale energy boom represents 
a potentially large opportunity for KBC at independent client companies.
Where we operate
Presence in key markets, 
development of local skills 
and leading practices from 
around the world are key to 
KBC’s competitive success.
Our services are determined by 
anticipating changes in the market 
and then providing our clients with 
relevant solutions.
Revenue (£m)
07
08
09
10
11
£22.4m 
+8%
22.4
20.7
20.5
23.2
13.7
4 KBC Advanced Technologies plc Annual Report 2011 SHAREHOLDER INFORMATION FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW OVERVIEW
KBC ofﬁces
Growth markets
ASIA EMEA
28%
Market overview
There is a strong demand in the EMEA region for energy efﬁciency and proﬁt 
improvement services, in spite of the ongoing weakness in the Eurozone 
economies. Poor processing margins in Europe are resulting in numerous 
facilities being for sale and this offers opportunities for technical, commercial 
and environmental due-diligence activities, as well as post-transaction asset 
improvement support. Middle Eastern and African markets are gradually 
recovering from the disruption caused by the Arab Spring and we are seeing 
growing demand for strategic investment, as well as operational and 
organisational efﬁciency services in sub-Saharan Africa and the Middle East. 
KBC’s work in Russia and the CIS continues to grow, led by strategic studies, 
capital solutions and energy efﬁciency improvement. Across the region there 
continues to be good demand for our software products to maximise 
proﬁtability with weak prevailing processing margins.
32%
Revenue (£m) Revenue (£m)
07
08
09
10
11
£17.5m 
+4%
17.5
16.9
13.9
11.8
8.6
07
08
09
10
11
£15.8m 
+2%
15.8
15.5
18.2
17.8
15.8
5 KBC Advanced Technologies plc Annual Report 2011
Market overview
The Asia market continues to be a growth environment resulting largely from 
GDP growth in China and India and rapid expansion of gas/LNG development 
in Australia. The reﬁning sector is buoyant in China and India with some growth 
potential in Malaysia, Vietnam and Indonesia. Mature countries, such as Japan 
and Korea, face declining domestic demand for transportation fuels. The 
international oil majors’ rationalisation of reﬁning assets offers opportunities 
for KBC. Australia is undergoing an LNG construction boom that will make 
it the largest LNG exporter in the world by late in the decade. There are also 
new LNG production projects in Papua New Guinea and Indonesia and the 
ﬁrst shale gas production started in China recently. The petrochemicals market 
remains robust and presents opportunities for KBC in capital projects and 
optimisation of existing assets. 6 KBC Advanced Technologies plc Annual Report 2011
OVERVIEW
Chairman’s statement
IAN GODDEN
CHAIRMAN
“ The main factors impacting our clients’ 
businesses during 2011 have persisted 
into 2012. We expect these drivers will 
lead to the maintenance of our current 
activity levels and continue to stimulate 
demand from our clients in both the 
traditional reﬁning market and the 
new sectors in which we are becoming 
established. We look forward to another 
good year for the Group in 2012.”
–  Strong growth in earnings and proﬁts driven by 
consulting revenue growth and cost management
–  Demand for KBC’s services driven by pressure 
on reﬁning margins in Europe and North America 
and by investment activity in other regions
–  The Board recommends a ﬁnal dividend of 1.55p 
per share, giving a total of 2.25p per share
–  We expect the current high levels of demand 
for work to continue
–  Underlying EPS up 27% to 7.1p
Summary
2011 was a very successful year for KBC with strong growth in 
earnings and proﬁts driven by consulting revenue growth and cost 
management. Consulting revenues, which remained steady in the 
ﬁrst half of the year, grew strongly in the second half to a total of 
£42.7m (2010: £39.2m) with overall revenue growing by 5% to £55.7m. 
With utilisation increasing in the second half, margins improved 
accordingly and underlying earnings increased by 27%. 
Sales awards for the year were strong at £44.9m, although less 
than the prior year ﬁgure of £67.8m which included the US$42.0m, 
three-year Proﬁt Improvement Program awarded by PEMEX in Mexico. 
Consequent workload backlog was £48.7m at 31 December 2011, 
down from £58.7m the year before, but still at a much higher level 
than seen in previous years.
Highlights OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
7 KBC Advanced Technologies plc Annual Report 2011
In Europe and North America the difﬁcult operating environment 
for many of our clients in the reﬁning industry has meant that we have 
continued to be successful in working with clients in these regions 
to improve the performance of their assets. In other parts of the 
world client investment in downstream assets continued and has 
driven demand for our services and technology. We have also seen 
increasing demand in adjacent sectors of the energy industry. 
Results
Revenue for the year increased by 5% to £55.7m (2010: £53.1m). 
Underlying proﬁt before tax increased by 20% to £5.9m (2010: £4.9m) 
and underlying earnings per share were up 27% to 7.1p (2010: 5.6p) 
due to a lower tax rate and reduction in exceptional bad debt 
provisions. On a statutory basis, proﬁt before tax was up 35% at £4.9m 
(2010: £3.6m) and basic earnings per share were 5.9p (2010: 4.0p).
Year-end cash balances increased by 29%, with a net cash balance 
of £5.8m compared to £4.5m at 31 December 2010. This is a signiﬁcant 
increase from the £2.7m at 30 June 2011 as a result of strong second 
half cash ﬂow. 
Dividend
The Board recommends a ﬁnal dividend of 1.55p per share. 
This gives a total for the year of 2.25p per share when combined 
with the interim dividend paid in October 2011 of 0.7p, an increase 
of 22% over the 2010 total of 1.85p. This recommendation reﬂects 
the strength of the results and the growth shown in earnings in 2011. 
Subject to approval at the annual general meeting, the dividend 
will be paid on 15 May 2012 to shareholders on the register at close 
of business on 4 May 2012.
Current trading and outlook
We expect the current high levels of demand for work to continue 
since the main factors impacting our clients’ businesses during 2011 
have persisted into 2012. Oil price volatility, increasing oil demand 
in the developing world and pressure on oil reﬁning margins in markets 
where demand is declining are all contributing. Reﬁning assets 
are still changing hands and there is a lack of experienced 
engineers in the areas where they are most needed. We expect 
these drivers will lead to the maintenance of our current activity 
levels and continue to stimulate demand from our clients in both 
the traditional reﬁning market and the new sectors in which we are 
becoming established. With the software arbitration now behind us, 
we expect new licence sales to grow again in 2012. We therefore 
look forward to another good year for the Group in 2012.
Ian Godden
Chairman
Grupa LOTOS SA, Poland
Reﬁning Excellence Partnership
–  Focusing on enhancing business processes 
and activities, resulting in more dynamic 
operating responses
–  Ensuring the ambitious “Project 10+” investment 
programme will boost reﬁnery proﬁtability 
–  Assisting with short-, medium-, and long-term 
planning activities using KBC’s software models
–  Positioning Grupa LOTOS SA as a strong player 
in the Baltics through the increased complexity 
of the plant
The four cornerstones of the partnership are:
– Organisational Excellence
– Technology Excellence
– Technical Excellence
– Performance Measurement Excellence
KBC’s software models will be a key element of the programme 
to ensure long, medium and short term planning activities to achieve 
the accuracy and ﬂexibility required by the new conﬁguration of the 
Gdansk reﬁnery. The increased complexity of the plant, coupled with 
the Reﬁning Excellence Partnership, will position Grupa LOTOS SA 
as a very strong player in the Baltic region. Close monitoring of 
reﬁnery performance will ensure the programme beneﬁts are 
being achieved.
“ The Grupa LOTOS SA /KBC Reﬁning Excellence 
Partnership represents an evolution of the 
relationship between our two companies”
Marek Sokołowski, Chief Operations Ofﬁcer of Grupa LOTOS SA. 8 KBC Advanced Technologies plc Annual Report 2011
BUSINESS REVIEW
Chief Executive’s review
GEORGE BRIGHT
CHIEF EXECUTIVE
“ Industry uncertainty is good for 
KBC. In a low utilisation/low margin 
environment, our clients are able to 
utilise our software and skills in margin 
optimisation and we continue to see 
demand for technical, commercial and 
environmental due diligence studies.”
Highlights
–  Global demand for reﬁned oil products continues to rise, 
mostly fuelled by population growth and increased 
industrialisation in the emerging economies
–  We anticipate further client M&A activity as traditional 
reﬁners reduce their exposure to reﬁning and newer 
players seek market access
–  High energy prices, combined with ever-increasing 
environmental restrictions, generate high demand for 
our energy optimisation services
–  KBC’s strategy is to position itself as the preferred 
independent provider of consulting and software services 
in the oil and gas sector
–  Our software has grown into the number one reactor 
based modelling system for the worldwide downstream 
energy sector
–  Our plan is to leverage our existing IP in different adjacent 
vertical markets, such as petrochemicals and gas processing
–  We have established an engineering resource centre 
in Mumbai, India
Our market and its impact on KBC
In 2011 the downstream energy sector continued to be our 
primary market. The ﬁve key drivers for this business are:
 – Oil and gas demand growth
 – Pressure on reﬁning margins
 – Oil price volatility
 – Sector M&A activity
 – Availability of qualiﬁed engineering staff
All of these drivers were positive for KBC throughout 2011.  OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
9 KBC Advanced Technologies plc Annual Report 2011
The market for downstream oil and gas processing continues to 
be in a state of ﬂux. The divide between the old and new economies 
remains, with a continuing contraction of capacity in the Atlantic 
basin and expansion of reﬁning and petrochemicals in Asia, 
the Middle East and Latin America, particularly in China, India, 
Saudi Arabia and Brazil.
Global demand for reﬁned oil products continues to rise, mostly 
fuelled by population growth and increased industrialisation in 
the emerging economies. We expect this trend to continue for 
the next few years and demand for our strategic, capital and 
organisational services to remain robust. 
In 2011 we commenced a project in Australia associated with 
production of coal bed methane and transmission to a new LNG 
plant. This work has been focused on non-traditional KBC services 
that enable clients to implement cultural change and organisational 
development.  We anticipate more of this type of work, as well 
as technical consulting, as gas becomes more signiﬁcant in the 
global energy mix.
In contrast, capacity rationalisation in Europe and North America 
continues at an accelerated pace, epitomised by the announcement 
of recent closures at three of Petroplus’s European reﬁneries and 
the Hovensa reﬁnery in the Caribbean. We expect this trend to 
continue for the next few years as the industry continues to shed 
capacity. We also anticipate further M&A activity as traditional 
reﬁners reduce their exposure to reﬁning and newer players seek 
market access. This industry uncertainty is good for KBC. In a low 
utilisation/low margin environment, our clients are able to utilise 
our software and skills in margin optimisation and we continue 
to see demand for technical, commercial and environmental 
due diligence studies. The increased level of M&A activity in the 
industry has also allowed us to expand beyond our traditional 
asset owner client base, and we now regularly handle project 
work for ﬁnancial institutions.
The oil price continues to be high at over US$100 per barrel and 
subject to geopolitical volatility.  We see no reason why this should 
change over the next few years. High energy prices, combined with 
ever-increasing environmental restrictions, generate high demand 
for our energy optimisation services. We anticipate therefore that 
this will continue to be one of our busiest areas.
KBC’s strategy and range of services 
KBC’s strategy is to position itself as the preferred independent 
provider of consulting and software services in the oil and gas sector. 
We have built our worldwide presence through organic development 
and selective acquisitions. We work for a wide range of clients 
(majors, national entities, independents and smaller companies), 
providing impartial and objective advice. 
Our services are determined by anticipating changes in the market 
and then providing our clients with relevant solutions. The breadth 
and scope of our strategic solutions increased in 2011 in response 
to an increase in M&A activities in our markets during the second 
half year.  We expect this trend to continue in 2012 and beyond.
Looking forward, our plan is to leverage our existing IP in different 
adjacent vertical markets, such as petrochemicals and gas processing, 
through a combination of organic growth and acquisitions.
Consulting operations
In 2011 our key objective was the successful execution of the backlog 
built during 2010, particularly the PEMEX Proﬁt Improvement Program.
A key feature of the year was the execution of projects across 
multiple client sites.  The Proﬁt Improvement Program at Mexico’s 
PEMEX, which started in 2010, expanded to include all six reﬁneries, 
and has been the cornerstone of our 2011 consulting revenues.  
Joint stewardship of the project with PEMEX management has 
conﬁrmed identiﬁed efﬁciency opportunities that have met or 
exceeded project commitments. 
PEMEX, Mexico
Proﬁt Improvement Programmes
– Operating in all six reﬁneries
–  Optimising all reﬁneries using KBC’s  
Petro-SIM™ and energy modelling software
–  Identifying and implementing opportunities 
to increase production, proﬁt and reliability
–  Embedding improvements into the 
client operation
–  Identifying opportunities that have met 
or exceeded project commitments
Mexico City 10 KBC Advanced Technologies plc Annual Report 2011
BUSINESS REVIEW
Chief Executive’s review continued
Consulting operations continued
In Asia we were contracted by Reliance Industries Limited (“Reliance”) 
to perform energy management and manufacturing excellence 
projects across all of their major reﬁnery and petrochemical sites. 
At 1.2m barrels per day, Reliance’s reﬁnery complex at Jamnagar 
is the world’s largest and includes some of the largest aromatics 
and polypropylene plants. Reliance has four other integrated 
petrochemical complexes, plus numerous polyester and other 
petrochemical plants, and KBC’s projects are focused on the 
six largest of these sites.
France’ s international oil major, T otal, has engaged KBC to assist with 
its drive to reduce energy consumption. This project is being carried 
out in conjunction with Alexander Proudfoot, a US management 
consulting ﬁrm, which is responsible for the change management 
aspects of the project. T o date we have started work at four of T otal’ s 
nine sites, in France, Germany and the USA. Signiﬁcant improvements 
in energy performance have been achieved through operational 
changes, a better deﬁned energy management system and a clear 
plan for future investments. We expect Total to continue this 
programme through 2012 and into 2013.
Other signiﬁcant projects undertaken include:
 – Organisational project for Santos, Australia
 – Feasibility studies for a new reﬁning/petrochemical complex 
for Petronas, Malaysia
 – Energy efﬁciency study for Bashneft, FSU 
 – Investment study for Gazpromneft, FSU
 – Excellence Partnership with Grupa Lotos, Poland
 – Training Manuals for Irving Oil, Canada
 – Process Safety project for Flint Hills Resources, USA
 – Valero Energy reﬁnery energy studies, USA
 – Training Systems for Delek Reﬁning, USA
In order to improve our bidding competitiveness in Asia and the 
Middle East we have established an engineering resource centre 
in Mumbai, India. Recruitment and training are under way and the 
ofﬁce will be fully operational in 2012. In response to increasing 
orders from the FSU we will be establishing a small, local language 
based consulting centre in Moscow in 2012.
Software review
Development of KBC’s software continued at a strong pace in 2011. 
Our software has grown into the number one reactor based modelling 
system for the worldwide downstream energy sector.
2011 marked the successful culmination of a ﬁve year programme 
to deliver and deploy a new version of our Petro-SIM™ software 
that provides customers with a signiﬁcantly improved reﬁnery-wide 
modelling capability. Based on user and market feedback, KBC 
is considered the “gold standard” of reﬁnery process modelling 
and client retention rate on maintenance contracts for our software 
is over 95%, one of the highest in the industry. 
We achieved record revenues from our energy software in 2011 
as clients in both the upstream and downstream energy sectors 
sought to reduce overall energy consumption.
Reliance Industries Limited, India
–  Operating in the six largest reﬁnery 
and petrochemical sites
–  Includes world’s largest reﬁnery complex 
at Jamnagar (1.2m barrels per day)
Energy management system
–  Energy focused organisation – capabilities, tools, procedures, 
best practices and business processes
–  Comprehensive energy management methodology – 
benchmarking, gap analysis and development 
of energy roadmap
–  Energy software tools for scenario analysis 
and design development
– Utility optimisers at complex sites 
–  Energy management system for sustainable 
energy efﬁciency improvement OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
11 KBC Advanced Technologies plc Annual Report 2011
Usage of KBC’s software increased both across our client base 
and on consulting projects undertaken by KBC. User group meetings 
during 2011 in Brazil, Singapore and the United Kingdom attracted 
record numbers of customers producing a healthy dialogue between 
users. This opened an extremely efﬁcient feedback channel to our 
software research and development to help accelerate innovation. 
The negotiation of several software licence sales extended into 
2012 from the last quarter of 2011 and we therefore expect a healthy 
level of software sales in the ﬁrst half of 2012.
Software arbitration
We were pleased to report in September that the allegations 
made by a software competitor concerning the infringement 
of its rights in certain software code had all been dismissed 
through an arbitration process as unfounded.
George Bright
Chief Executive
“ Our services are determined by 
anticipating changes in the market 
and then providing our clients with 
relevant solutions. The breadth and 
scope of our strategic solutions increased 
in 2011 in response to an increase in client 
M&A activities in our markets during the 
second half year. We expect this trend 
to continue in 2012 and beyond.”
New Delhi
Reliance Manufacturing Management System
–  KBC participating in client’s business transformation initiative
–  Specialist management consultancy in reﬁning and petrochemicals
–  Validate and co-develop best practices and business 
processes in:
 – Technology stream
 – Engineering and maintenance 
 – Learning and development
 – Environmental
 – Operations
 – People/organisation 12 KBC Advanced Technologies plc Annual Report 2011
BUSINESS REVIEW
Financial review
NICHOLAS STONE
OPERATIONS AND FINANCE DIRECTOR
“ Group revenue increased by 5% 
in 2011 to £55.7m compared with 
£53.1m in 2010. Overall performance 
should be viewed against a challenging 
environment, especially in the ﬁrst half 
year, when business was impacted by 
the Arab Spring, the war in Libya and 
the tsunami in Japan.“
Highlights
–   Consulting revenue increased by 9% from £39.2m in 2010 
to £42.7m
–  Underlying operating proﬁt increased by 19% from £5.0m 
in 2010 to £6.0m
–   Proﬁt before tax of £4.9m shows an increase of 35% from 
£3.6m in 2010
–   Effective tax rate of 34% (2010: 39%) of pre-tax proﬁts 
higher than the current rate of UK corporation tax of 
26.5% but lower than the previous year
–   Basic earnings per share of 5.9p, compared to 4.0p in 2010
–  Trade and other receivables reduced during the year from 
£23.2m to £22.9m
–  Trade and other payables decreased from £8.9m to £7.9m 
due to a partial reversal of the sharp increase in deferred 
revenue seen in 2010
Operating results
Group revenue increased by 5% in 2011 to £55.7m compared with 
£53.1m in 2010. There is no material impact from foreign exchange 
rates movement in these results. 
Consulting revenue increased by 9% from £39.2m in 2010 
to £42.7m but software revenues declined by 6% from £13.8m 
in 2010 to £13.0m in 2011. This overall performance should be 
viewed against a challenging environment, especially in the ﬁrst 
half year, when business was impacted by the Arab Spring, the war 
in Libya and the tsunami in Japan. The software revenue includes 
£6.7m of maintenance and support revenue, up from £6.5m last 
year, with the balance being new license revenue. As previously 
stated, the level of new licence sales reﬂected several large sales 
slipping into 2012.
Group costs decreased by 3% compared to the previous year. 
Staff and associate consultant costs increased by around 4% partly 
due to the increased use of associates and sub-contractors in the 
second half of the year and partly because the level of development  OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
13 KBC Advanced Technologies plc Annual Report 2011
Total, France
Project Ampere
–  Working at four of Total’s nine sites
–  Improving energy performance signiﬁcantly 
through operational changes
–  Supporting a well-deﬁned  
energy management system
–  Continuing this programme through 
2012 into 2013
costs carried forward was much reduced. Direct costs increased by 
15% largely due to the ongoing trend of increased consultant time 
on site and a higher number of projects outside our home countries 
leading to higher travel and subsistence costs. Other operating 
charges decreased by 7% due to a reduction in the level of bad 
debt charges.
The ﬁnancial statements contain a charge of costs of £0.6m associated 
with software arbitration referred to on page 11. An award of costs 
has been made in our favour and we are seeking to recover those 
costs through the arbitration process. No accrual has been made 
for this in the ﬁnancial statements.
Operating proﬁt calculated on an underlying basis increased by 
19% from £5.0m in 2010, to £6.0m in 2011. This measure ignores 
the carry forward of software development costs, their amortisation, 
the amortisation of acquired intangible ﬁxed assets, arbitration costs, 
one-off redundancy costs and exceptional bad debt provisions. 
In 2010 a charge of £1.5m was made in respect of business in Iran 
and Libya and in 2011 a charge of £0.4m was made in respect 
of receivable balances from subsidiaries of Petroplus following 
commencement of bankruptcy proceedings in January this year. 
The impact of software development costs carried forward was 
reduced from a net credit of £0.7m in 2010 to a net credit of 
£0.1m in 2011 reﬂecting the reduction in development activity 
in 2011 following the release of version 4 of the Petro-SIM 
software. Statutory operating proﬁt increased by 33% to 
£5.0m (2010: £3.8m).
The ﬁnance cost of £0.1m, unchanged from 2010, mainly reﬂects the 
ongoing cost of providing letters of credit and bank guarantees to 
clients in parts of the world where such instruments are essential 
to doing business.
Proﬁt before tax
The proﬁt before tax of £4.9m shows an increase of 35% from 
£3.6m in 2010.
Order backlog (£m)
£48.7m 
-17%
07 08 09 10 11
30.6
39.6
40.8
58.7
48.7
Contract awards (£m)
£44.9m 
-34%
07 08 09 10 11
40.2
52.4
55.3
67.8
44.9
Paris
Berlin
Washington DC 14 KBC Advanced Technologies plc Annual Report 2011
BUSINESS REVIEW
Financial review continued
Tax
The tax charge of £1.7m (2010: £1.4m) for the year is made up 
of current tax expense of £1.4m and a deferred tax charge of £0.3m. 
The current tax expense includes £0.8m of tax payable on overseas 
operations and £0.7m of withheld tax that is not expected to be 
recoverable against corporation tax as a result of the continuing 
availability of losses brought forward in the UK and low tax rates 
in Singapore. The deferred tax charge is principally for short term 
timing differences expected to reverse in future years.
The effective tax rate of 34% (2010: 39%) of pre-tax proﬁts remains 
higher than the current rate of UK corporation tax of 26.5% but lower 
than the previous year. The main reason for the higher rate is the 
non-recovery of tax withheld on payments totalling £1.0m from 
overseas territories to our UK and Singapore subsidiaries due to: 
(i) the tax losses in the UK and (ii) the low tax rate in Singapore. 
The impact of this has been partially offset by allowances 
claimable for research and development.
A net deferred tax asset of £1.6m (2010: £1.9m) remains on the 
balance sheet representing mainly prior year tax losses that have 
not yet been utilised and other timing differences.
Earnings and dividends
The proﬁt after tax for 2011 of £3.3m, up by 47% from £2.2m in 2010, 
equates to basic earnings per share of 5.9p, compared to 4.0p in 
2010. Diluted earnings per share were 5.9p and 4.0p respectively. 
Earnings per share calculated on the underlying proﬁt measure 
increased by 27% from to 5.6p to 7.1p.
A ﬁnal dividend of 1.55p per share is proposed for the year, 
following the interim dividend of 0.7p per share paid in October 
2011.This leads to a total payment of 2.25p per share, making an 
increase of 22% over 2010 (1.85p per share). Assuming it is approved 
by shareholders at the annual general meeting, the dividend will 
be paid on 15 May 2012 to shareholders on the register at close 
of business on 4 May 2012.
Carry forward of software development costs
The latest version of Petro-SIM, version 4, was released in 2010 
and it was for the ﬁrst time possible to determine that this version 
had reached the stage where development expenditure should 
be carried forward, based on the same test used with the previous 
version. Thus the Board determined that development costs incurred 
in 2010 amounting to £1.1m should be carried forward over a ﬁve year 
period from 2010 against future sales revenue. Amortisation of 
£0.4m was charged during 2010 to the income statement, thus 
giving an overall net credit of £0.7m compared with the situation 
if development expenditure had not been carried forward. During 2011 
development expenditure totalled £0.6m with an amortisation 
charge of £0.5m giving a net credit of £0.1m for the year compared 
with the situation if development expenditure had not been carried 
forward. Therefore, net expenditure of £1.3m is held on the balance 
sheet at 31 December 2011 against future revenue from licence 
sales and support contracts.
Working capital
Trade and other receivables reduced during the year from £23.2m 
to £22.9m. However trade and other payables decreased from £8.9m 
to £7.9m due to a partial reversal of the sharp increase in deferred 
revenue seen in 2010. When deferred revenue is deducted from 
total receivables, the net receivable increased in line with overall 
revenue. There was no material change in the proportion of trade 
debtors to amounts recoverable on contracts but not yet invoiced 
between the two years.
Nicholas Stone
Operations and Finance Director
Total dividend per share (pence)
2.25p 
+22%
07 08 09 10 11
Underlying earnings per share (pence)
7.1p 
+27%
07 08 09 10 11
3.7
6.9 6.8
5.6
7.1
0.75
1.35
1.55
1.85
2.25 OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
15 KBC Advanced Technologies plc Annual Report 2011
Some of the Group’s commercial contracts 
include terms where revenues are related to 
performance in the form of bonuses or penalties. 
Contracts
The Group’s exposure under such contracts is reviewed regularly by the 
Executive Committee and the Board.
Liquidity
Client payment terms vary from contract 
to contract and can involve extended periods 
of time before invoices are raised and cash ﬂow 
can be irregular.
At 31 December 2011 the Group held net cash balances of £5.8m, compared 
to cash balances of £4.5m as at 31 December 2010. Cash balances in excess 
of immediate needs are placed on short-term deposit in the money markets.
Overdraft facilities available to the Group for use in managing the timing of 
cash ﬂow in different countries and currencies were used periodically during 
the year. Current overdraft facilities available to the Group total around £3m.
In addition, a three-year revolving credit facility of £2m provides 
additional liquidity and possible acquisition funds. Interest charges 
on this facility are linked to the LIBOR rate appropriate to the duration 
and currency of any drawdown.
Credit
The main credit risk faced is attributable to trade 
receivables. As the majority of the Group’s clients 
are state-owned or very large oil companies, the 
risk of non-payment tends to be less of the 
traditional credit nature and more related to 
client satisfaction.
Provision is made for doubtful receivables when there are circumstances 
which based on experience are evidence of a likely reduction in the 
recoverability of the receivable
Principal risks and risk management
Managing risk
The major ﬁnancial risks 
faced by the Group are 
interest rate risk and foreign 
currency risk.
Some projects are 
located in areas subject 
to political upheaval and/or 
environmental disasters. 
Economic factors may 
also have an impact 
on our markets.
The Group’s principal 
ﬁnancial instruments are 
trade receivables, trade 
payables, cash and cash 
equivalents used to ﬁnance 
the Group’s ongoing 
operational requirements.
A regular assessment 
of the risks and controls 
takes place with the results 
reviewed by the Board. 
Major risks to the business 
are reviewed by the Directors 
as and when they arise.
ANALYSIS &                                                                                                          IDENTIFICATION
 EVALUATION                                                         
The principal risks and 
uncertainties facing the business 
identiﬁed by the Directors are 
set out below, together with the 
main systems and processes the 
Group has in place to manage 
and mitigate these risks.
Economic 
and social
Changes in the market sectors, including oil price, 
energy demand, M&A activity and the availability 
to our clients of skilled staff, can all impact upon 
the volume of business available to KBC.
Our range of services has expanded over the years and continues to 
evolve so that we are able to offer appropriate solutions to our clients 
in varying circumstances.
Political and 
environmental
Some of KBC’s work and proposed work 
is in regions subject to political changes and 
environmental disasters which can disrupt the 
markets, affect our ability to execute work for 
clients and/or collect payment for work performed.
Appropriate payment terms are negotiated whenever possible to ensure 
KBC’s exposure is minimised. The nature of our contracts requires us to 
work in a ﬂexible manner and be ready to adapt and redeploy the workforce 
as and when necessary. Security consultants are retained for advice on 
potential risk and we avoid working in very high risk or hostile areas.
RISK DESCRIPTION MITIGATION
Foreign 
currencies
Most transactions continue to be in US dollars, 
euro or sterling. The proportion of revenue in 
each currency was:
Where a revenue currency differs from that in which costs are incurred, 
a proportion of the foreign exchange exposure is offset using forward 
exchange contracts in the currency markets. Contracts were in place at 
the balance sheet date for the sale of US$ nil (2010: $4.0m) and €2.5m 
(2010: €1.5m) at an average rate of €1.16 (2010: €1.18).
The Group has a number of overseas subsidiaries and branches whose 
revenues and costs are denominated in currencies other than sterling, 
the most signiﬁcant of which are in the USA. The foreign currency translation 
exposure arising on their results is not hedged.
2011 2010
US dollars 56% 60%
Euro 18% 21%
Sterling 15% 12%
Other 11% 7%
                                                                         REPORTING &
MONITORING
              MITIGATIO N 16 KBC Advanced Technologies plc Annual Report 2011
CORPORATE GOVERNANCE
Board of Directors
1. Ian Godden
Chairman 
Age: 58
Skills and experience: Mr Godden is Chairman of Farnborough International, 
the company responsible for Farnborough Airshow and other international 
aerospace, defence and security events. He is a Non-Executive Director of 
Bristows Group Inc (USA) and Chairman and CEO of Glenmore Energy Inc (USA). 
He has recently stepped down as Chairman of ADS, the trade organisation advancing 
UK aerospace, defence and security industries. After gaining managerial and 
technical experience in the worldwide oil industry during the 1970s, Mr Godden 
focused on strategy consulting in the USA and Europe. During the 1990s he was 
UK Managing Partner and a European Board member of Booz Allen and Hamilton. 
From 2000 to 2004 Mr Godden was UK Managing Partner of Roland Berger Strategy 
Consultants. He has a BSc Engineering degree from Edinburgh University and an 
MBA from Stanford University, California. He is a Fellow of the Royal Aeronautical 
Society. Mr Godden was appointed a Non-Executive Director of KBC in July 2008 
and became Chairman in January 2011. He is Chairman of the Nomination Committee 
and is a member of the Audit and Remuneration Committees.
2. George Bright
Chief Executive
Age: 61
Skills and experience: Mr Bright is a Chemical Engineer and graduated from the 
University of Edinburgh. He is a Fellow of the Institution of Chemical Engineers. 
Prior to joining KBC Mr Bright worked for IBM and Esso Petroleum plc. During his 
20-year career with Esso he gained broad experience of the reﬁning industry, 
working in both technical and management roles. Mr Bright joined KBC in 1997 
and was appointed Chief Operating Ofﬁcer in September 2003. He joined the 
Board of KBC in March 2004 and was appointed Chief Executive in May 2006.
3. Nicholas Stone
Operations and Finance Director
Age: 48
Skills and experience: Mr Stone has a degree in Mathematics and Economics 
from Bristol University and is a member of the Institute of Chartered Accountants 
in England and Wales. He qualiﬁed with Coopers and Lybrand where he gained 
experience in audit, tax and corporate ﬁnance before undertaking various ﬁnancial 
roles with Mobil in the UK. Subsequent to that Mr Stone was Company Secretary 
and UK Finance Director of the Lambert Fenchurch Group. Mr Stone joined KBC 
in 2001 as Finance Director and was appointed Operations and Finance Director 
in May 2006.
4. Michael Kirk
Independent Non-Executive Director
Age: 51
Skills and experience: Mr Kirk is Vice-Chairman of Thackray Museum, the UK’ s 
leading medical museum, a Trustee of BTCV, a leading UK conservation and 
environmental charity, and is Non-Executive Chairman of KBC Environmental 
Limited, a subsidiary of the Company. He was Managing Director of Weber 
Shandwick Financial, a ﬁnancial communications consultancy, until July 2005. 
He joined Weber Shandwick from Cazenove, the UK investment bank, where 
he worked in Corporate Finance for over 13 years, four of those as a Partner in the 
ﬁrm. Whilst at Cazenove Mr Kirk advised companies on a wide range of corporate 
issues including the demerger of Centrica from British Gas, the Lattice demerger 
from BG and the UK listings of Expro International Group, John Wood Group and 
KBC. His early experience is in the energy and insurance sectors, having started 
his career at British Nuclear Fuels. A Chartered Engineer, Mr Kirk has an MBA 
in Finance and degrees in Chemical Engineering and Nuclear Fuels Technology. 
Mr Kirk was appointed a Non-Executive Director of KBC in October 2004. 
He is Chairman of the Audit Committee and a member of the Nomination 
and Remuneration Committees. He is also the Senior Independent Director.
5. Oliver Scott
Non-Executive Director
Age: 44
Skills and experience: Mr Scott is a co-founder and partner of Kestrel Partners 
LLP , where he acts as a fund manager and is also responsible for structuring the 
partnership’s investment management activities. He was formerly a Director of 
corporate ﬁnance at KBC Peel Hunt, stockbrokers and ﬁnancial advisors, where 
he specialised in advising smaller quoted and unquoted companies. He is 
currently Chairman (Non-Executive) of both ClearSpeed Technology Ltd and ZF 
Acquisitions Ltd, as well as a Non-Executive Director of GlobalReach Kestrel plc 
(Ireland). Mr Scott has a degree in Business Economics and is a member of the 
Securities and Investment Institute. Mr Scott was appointed a Non-Executive 
Director of KBC in December 2010. He is Chairman of the Remuneration 
Committee and is also a member of the Audit and Nomination Committees.
6. Janet Ireland
Company Secretary
Age: 58
Skills and experience: Mrs Ireland is a Chartered Secretary. She previously held 
administrative positions in the John S Latsis Group and at Pritchard-Rhodes Ltd. 
Mrs Ireland joined KBC in 1985 and was appointed Company Secretary in June 2000.
1 2
4 5 6
3 OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
17 KBC Advanced Technologies plc Annual Report 2011
1. George Bright
Chief Executive
2. Nicholas Stone
Operations and Finance Director
3. Kevin Clarke
Executive Vice President, EMEA region
Kevin also leads KBC’s innovation and knowledge management functions. 
He has been with KBC for 15 years and previously led the global downstream 
consulting and software businesses, EMEA operations, EMEA process consulting 
and global Implementation services teams. Kevin is a chemical engineer and 
previously held engineering and management roles with Elf Oil and British Gas.
4. Andy Howell
Executive Vice President, Software
Andy is responsible for KBC’s software development, customer support and 
strategy development. Prior to joining KBC Andy worked for Schlumberger, 
holding management positions related to oil and gas exploration, development 
and production, and at Aspen Technology (Hyprotech) where he managed 
software development for the oil and gas industry. A chemical engineer, 
he started his process engineering career with BP Exploration.
5. Ed Kleinguetl
Executive Vice President, Consulting
Ed also has responsibility for KBC’s consulting strategy development, integrated 
solution creation, tools/methodology and quality control. Ed’s prior experience 
was in mergers and acquisitions at Ernst & Young and in the business consulting 
practice at Arthur Andersen. A Certiﬁed Public Accountant, Ed gained ﬁnancial 
management experience earlier in his career with various manufacturing and 
service companies in the USA and holds a BSBA in Accounting.
6. Bill Tetreault
Executive Vice President, Americas region
Bill also co-ordinates project execution and service delivery efﬁciency for the 
Group. Bill formerly headed the Reliability and Maintenance group within KBC. 
He previously worked in various operations and management roles for US 
speciality chemical companies, including Amber, Allied Signal and Monsanto, 
after graduating as a chemical engineer.
7. David Turner
Executive Vice President, Asia region
David is also responsible for developing sales and marketing strategy for the 
Group. Prior to joining KBC he worked for Aspen Technology in technical and 
business development managerial roles. A chemical engineer, David’s earlier 
experience was in business development and general management in the oil 
and gas industry.
Executive committee
12
4
3
56
7 18 KBC Advanced Technologies plc Annual Report 2011
CORPORATE GOVERNANCE
Corporate governance statement
Chairman’s introduction
The Board of Directors is responsible for the strategic direction, 
management and control of the Group’s activities. Its sets the 
tone, as well as the structure, of governance for the Group 
as a whole.
The Board aspires to apply best practice in corporate 
governance wherever it can in the Group taking into account 
its size and nature. Appropriate controls and processes are 
consistent with the drive and ambition in the Group and are 
an essential part of maximising and sustaining the success of the 
Group over the long as well as short term. This process is one, 
like pursuit of the Group’s strategic objectives in general, which 
will always be ongoing, with evolving requirements and with 
further improvements to be made as the Group and the 
environment in which it operates develop.
Although not required by AIM, the Directors have given full 
consideration to the UK Corporate Governance Code 2010 
(the “Code”) and have conducted the Group’s business in 
accordance with the Code whenever possible. An explanation 
of how the Group has applied the principles, and complied 
with the provisions, of the Code throughout the year follows.
Ian Godden
Chairman
An explanation of how the Group has applied the principles, 
and complied with the provisions, of the Code throughout the 
year appears below.
The workings of the Board and its committees
The Board
The Board at 31 December 2011 and at the date of this report 
comprises two Executive Directors, two Non-Executive Directors 
and the Chairman. Their details are set out on page 16. The 
Board considers this to be an appropriate size and balance for 
the Company at present. Oliver Scott, Non-Executive Director, 
is not considered independent under the Code as he is a partner 
of Kestrel Partners LLP , where he acts as fund manager for Kestrel 
Opportunities Fund which holds shares in the Company. Mr Kirk 
is considered independent and holds the position of Senior 
Independent Director. In this role Mr Kirk made himself available 
for meetings with shareholders during the year, led the assessment 
of the Chairman’s performance in 2011 and handled other 
responsibilities as determined by the Board.
The Board meets at least six times per year to deal with 
matters speciﬁcally reserved for its decision. These matters 
include  agreeing and monitoring strategic plans and ﬁnancial 
targets, major decisions on resource, overseeing management 
of the Company in the interest of shareholders, ensuring 
processes are in place to manage major risks, treasury matters, 
changes in accounting policies, corporate governance issues, 
litigation and reporting to shareholders. The executive managers 
of the business make day-to-day operating decisions to ensure 
proper management of the Company’s business and implement 
the Board’s approved strategy to deliver operational performance. 
They recommend strategy and plans to the Board, make routine 
decisions on resources and ensure that adequate operational 
and ﬁnancial controls are in place.
The Board of Directors is accountable to the Company’s shareholders 
for good corporate governance and this statement describes how this 
has been applied.
Board
meetings
Audit
Committee
meetings
Nomination
Committee
meetings
Remuneration
Committee
meetings
Scheduled meetings 923 5
George Bright 9—— —
Ian Godden 922 5
Michael Kirk 923 5
Oliver Scott 923 5
Nicholas Stone 9—— — OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
19 KBC Advanced Technologies plc Annual Report 2011
Governance structure 
THE BOARD
The Executive Committee meets regularly to direct, control and monitor the Group’s operations 
on a day-to-day basis. Members of the Executive Committee are shown on page 17.
EXECUTIVE COMMITTEE
The Committee meets at least twice a year, with the Chief Executive in attendance by invitation, 
to determine the remuneration of the Executive Directors and senior executives of the Group. 
The Committee is responsible for determining policy, within agreed terms of reference, of the 
Group’ s framework of executive remuneration and its cost. The Committee sets the contract terms, 
remuneration and other beneﬁts for each of the Executive Directors, including performance 
related bonus schemes, pension rights and compensation payments. Further details of the 
Group’s policies on remuneration, service contracts and compensation payments are given 
in the Directors’ remuneration report on pages 21 to 24.
REMUNERATION COMMITTEE
OLIVER SCOTT
CHAIRMAN DURING 2011
Members 
Michael Kirk 
Ian Godden  
IAN GODDEN
CHAIRMAN DURING 2011
Members 
Michael Kirk 
Oliver Scott  
The Committee meets as required and is responsible for proposing candidates for appointment 
to the Board and the structure and composition of the Board. In appropriate cases 
recruitment consultants are used to assist the process. All Directors are subject to election by the 
shareholders at the ﬁrst opportunity after their appointment and to re-election thereafter by the 
shareholders at least every three years.
NOMINATION COMMITTEE
IAN GODDEN
CHAIRMAN (UNTIL 15 MARCH 2011)
MICHAEL KIRK
CHAIRMAN (FROM 15 MARCH 2011)
Members 
Oliver Scott 
Michael Kirk 
Ian Godden 
The Committee, which meets at least twice a year, provides a forum for reporting by the Group’ s 
external auditors. Meetings are also attended, by invitation, by the Chief Executive and the 
Operations and Finance Director. The Audit Committee follows written terms of reference 
and is responsible for reviewing a wide range of matters including adequacy of the Group’s 
accounting systems and control environment, the integrity of the Group’s ﬁnancial statements 
and its reporting procedures to shareholders.
The Committee advises the Board on the appointment of external auditors and their remuneration, 
and discusses with the external auditors the nature, scope and results of the audit. The Committee 
keeps under review the cost effectiveness, independence and objectivity of the external auditors, 
including the level of non-audit fees charged. Auditor objectivity and independence is safeguarded 
by ensuring that non-audit services provided by the external auditors are kept to a minimum 
and are restricted to matters concerning tax compliance and associated advisory services.
The Committee also monitors the effectiveness of the Group’s internal controls and risk 
management systems. It considers annually whether it is appropriate to introduce a separate 
internal audit function. To date it has concluded that this is not necessary given the structure 
of the Group’s accounting function and the size of the Group.
AUDIT COMMITTEE
During 2011 the Board met nine times, excluding ad hoc meetings, 
to deal with procedural and other matters. The Audit, Nomination 
and Remuneration Committees met two, three and ﬁve times 
respectively during the year. Attendance is recorded in the table 
opposite. Ad hoc meetings are also held by telephone as required.
To enable the Board to discharge its duties all Directors receive 
appropriate and timely information. Brieﬁng papers are distributed 
by the Company Secretary to all Directors in advance of Board 
meetings. The Chairman ensures that all Directors are properly 
briefed on issues arising at Board meetings.
The Chairman ensures that all Directors, in the furtherance of their 
duties, have access to independent professional advice as required 
and at the Company’ s expense. All Directors are encouraged to bring 
an independent judgement to bear on issues of strategy , performance, 
resources (including key appointments) and standards of conduct. 
The Non-Executive Directors have a particular responsibility to 
ensure that the strategies proposed by the Executive Directors 
are fully considered.
All Directors have access to the advice and services of the Company 
Secretary who is responsible for ensuring that Board procedures 
are followed and that the Board complies with applicable rules 
and regulations. The appointment and removal of the Company 
Secretary is a matter for the Board as a whole.
Relevant and appropriate training is made available to every 
Director on the ﬁrst occasion he or she is appointed to the 
Board of the Company. 
There is a Board appraisal system in place that includes the 
assessment of training needs for all Directors.
To ensure that no single person has unfettered powers of decision 
over the Company there is a clear division of responsibility between 
the running of the Board and the running of the Group’s business. 
The Chairman is responsible for the running of the Board and for 
ensuring effective communication with shareholders, with the 
Chief Executive running the Group’s business.
The Board undertakes a rigorous and formal evaluation of its own 
performance and that of its committees and individual members. 
The committees shown below report to the Board thereby enabling 
the Board to meet its responsibilities. The terms of reference of these 
committees are available on the Group’s website. 20 KBC Advanced Technologies plc Annual Report 2011
The workings of the Board and its committees continued
Performance evaluation
Performance of the Board and of the committees of the Board is 
reviewed collectively by all the Directors. Individual performance 
evaluation of Executive Directors, other than the Chief Executive, 
is carried out by the Chief Executive and the results reviewed with 
the Chairman and the Remuneration Committee. Evaluation of the 
Chief Executive’s performance is carried out by the Chairman and 
the results reviewed with the Non-Executive Directors. Non-Executive 
Directors are appraised by the Chairman. The Chairman is appraised 
by the Non-Executive Directors, led by the Senior Independent 
Director, in consultation with the Chief Executive. An evaluation 
of the performance during 2011 of the Board as a whole, the 
committees and individual Directors took place in early 2012. 
The Chairman reviewed these matters with each Director individually 
and the conclusions of the overall assessments were reviewed by 
all the Directors.
Internal control
The Board has overall responsibility for the Group’s system 
of internal control. The system of internal control is designed to 
manage rather than eliminate the risk of failure to achieve business 
objectives. In pursuing these objectives, internal controls can only 
provide reasonable and not absolute assurance against material 
misstatement or loss.
A process has been in place throughout the year and up to 
the date the ﬁnancial statements were approved for identifying, 
evaluating and managing the signiﬁcant risks faced by the Group. 
This is regularly reviewed by the Audit Committee.
The Board performs a regular review of the effectiveness of the 
system of internal control and takes actions necessary to remedy 
any signiﬁcant failings or weaknesses identiﬁed in the review. 
The processes used by the Board to review the effectiveness 
of the system of internal control include the following:
–  the Audit Committee reviews the effectiveness of the risk 
management process and signiﬁcant risk issues are referred 
to the Board for consideration;
–  the Chairman of the Audit Committee reports the result 
of Audit Committee meetings to the Board and the Board 
receives minutes of all such meetings;
–  the Audit Committee maintains close contact with the 
Operations and Finance Director and periodically instigates 
investigations into the effectiveness and other aspects of 
internal control;
–  the Board receives the results of risk self-assessment reports from 
senior managers covering the risks faced by the Group together with 
compensating internal controls. A record of such risks is maintained 
and reviewed on a regular basis, with risk weightings assigned to 
ensure priority is given to the major risks faced by the Group; and
CORPORATE GOVERNANCE
Corporate governance statement continued
–  the Board receives regular reports concerning the speciﬁc 
contract risks faced by the Group.
Principal risks facing the business are described on page 15.
The Board regularly considers social, ethical and safety issues 
relating to the Group.
Given the size of the Group, the Board does not believe that it is 
appropriate to have a separate internal audit function but reviews 
the position annually.
Relations with shareholders
KBC values and maintains an active dialogue with its shareholders 
through a planned programme of investor relations. The Chief 
Executive and Operations and Finance Director meet frequently 
with representatives of institutional shareholders to discuss their 
views and review corporate governance issues. In addition, the 
Chairman and Senior Independent Director meet shareholders 
as and when required. Feedback from these meetings is discussed 
at meetings of the Directors. The largest shareholders are invited 
to meet any other Directors at any time. Major shareholders are 
consulted on signiﬁcant issues concerning the Company’s corporate 
governance. Information is also made available to shareholders 
via the Annual and Half Year Reports and the Group’s website 
(www.kbcat.com).
The Annual General Meeting provides an opportunity to 
communicate with private and institutional shareholders and the 
Company welcomes their participation. The Chairman ensures that 
members of the Audit, Remuneration and Nomination Committees 
are available at Annual General Meetings to answer questions. 
Details of resolutions to be proposed at the Annual General Meeting 
in 2012 can be found in the Notice of Meeting on page 57.
Going concern
The Annual Report and ﬁnancial statements are prepared on a 
going concern basis. The Directors are satisﬁed that the Group has 
sufﬁcient resources and borrowing facilities to meet its requirements 
for a period of at least 12 months from the date of this report.
By order of the Board
Janet Ireland
Company Secretary
13 March 2012
22%
56%
11%
11%
How the Board members spent their time in 2011
Stategy/Planning 56%
Operational 22%
Finance 11%
Other 11%
Length of tenure 
0–4 years  2
5–8 years 2
9–12 years 1
40%
40%
20% OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
21 KBC Advanced Technologies plc Annual Report 2011
CORPORATE GOVERNANCE
Directors’ remuneration report
As the Company’s shares are traded on AIM, the Company is not 
required to issue a Directors’ Remuneration Report. However, the 
Directors have chosen to provide this report voluntarily as they wish 
to provide full information to shareholders in line with best practice.
This remuneration report has been prepared in accordance with 
Section 420 of the Companies Act 2006. Whenever possible the 
Company has complied with Principles D1 and D2, the supporting 
principles and the underlying speciﬁc provisions of the Code in 
determining the policy and procedure on remuneration for its 
Executive Directors, including service contracts and compensation. 
Details of each Director’s remuneration are set out on page 24.
Remuneration Committee composition, 
responsibilities and operation
The Company’s Remuneration Committee (the “Committee”) 
during 2011 consisted of the Non-Executive Directors (Oliver Scott, 
who chaired the Committee, and Michael Kirk) and the Chairman 
of the Board (Ian Godden). Mr Kirk is considered independent. 
Mr Scott is not considered independent for the reasons stated 
on page 18. Mr Godden was considered to be independent 
upon his appointment as Chairman of the Board in January 2011. 
The Chief Executive and Operations and Finance Director 
are invited to attend meetings other than when their own 
remuneration is being considered. 
The Committee determines the policy, within agreed terms of 
reference, of the overall remuneration package for Executive Directors 
and other senior executives. The Group and the Committee seek 
advice from time to time from external remuneration consultants. 
In 2010 and 2011 New Bridge Street (a trading name of Aon 
Corporation) advised the Committee on remuneration-related 
matters. Neither New Bridge Street nor any other part of 
Aon Corporation provided other services to the Company.
Remuneration policy
The Group’s policy is to attract, retain and motivate high calibre 
executives capable of achieving the Group’s objectives and to 
offer a remuneration package (consisting of basic salary, beneﬁts, 
incentive share schemes, pension and a performance related 
bonus) which is competitive within the sector in which the Group 
operates. The details of individual components of the remuneration 
package and service contracts are discussed below.
Basic salary and beneﬁts
The basic salaries and beneﬁts of all employees are reviewed 
every year. In reviewing salaries, consideration is taken of personal 
performance, the Group’s performance and external comparative 
information. Beneﬁts principally relate to pensions, car allowances, 
life assurance, disability insurance and private health care. 
Statement of consideration of conditions elsewhere 
in the Group
The Committee takes into account the pay and employment 
conditions of all employees in the Group when considering changes 
to salaries and other beneﬁts for Directors. The Committee is kept 
aware of changes in remuneration policy for other senior executives 
in the Group and these are taken into consideration, consistent with 
the Group’s general aim of seeking to reward all employees 
fairly according to the nature of their role, their performance 
and market forces.
Performance bonuses
A performance bonus is payable to Executive Directors on 
the achievement of performance conditions established by 
the Remuneration Committee. 
A cash-based bonus plan was in place during 2010 and 2011 under 
which the post-tax trading proﬁts of the Group (after making any 
IFRS charge relating to share incentives) would be split between 
retained earnings, dividends and a cash bonus pool. The maximum 
cash bonus pool was one third of post-tax trading proﬁts of the 
Group (after making any IFRS charge relating to share incentives). 
The Committee considers the Group’ s ﬁnancial performance and 
market expectations when determining the awards to be made from 
the pool to Executive Directors and other employees. The bonus 
pool would be available to pay cash bonuses to all employees. 
For Executive Directors the maximum potential annual bonus for 
2010 and 2011 was 100% of base salary. Payment of bonus to 
Executive Directors for 2010 and 2011 was dependent on meeting 
or exceeding Group ﬁnancial performance measures, including 
operating margin. The criteria for making the awards to senior 
employees other than the Executive Directors included individual 
performance measures.
The cash bonus plan for 2012 follows the same basic principles.
Up to 50% of any Executive Director’s annual bonus is compulsorily 
deferred into the Company’s shares for three years, with these 
shares “matched” on a 1:1 basis (gross of tax) with an award of 
performance-linked matching shares granted under the Long Term 
Incentive Plan 2006 (“LTIP 2006”). Other employees may voluntarily 
elect for part of their bonus (up to a maximum level set by the 
Committee) to be deferred into the Company’s shares which are 
also subject to a similar award of performance-linked matching 
shares under the LTIP 2006.
Pensions
The Group operates deﬁned contribution pension schemes. 
Contributions are calculated as a percentage of basic salary.
The Chairman and Non-Executive Directors are not eligible 
for membership of Group pension schemes.
Fees
The fees for Non-Executive Directors and the Chairman are 
determined by the Executive Directors. Neither the Non-Executive 
Directors nor the Chairman are involved in any discussions or 
decisions about their own remuneration.
Directors’ contracts
Details of the contracts of Directors who served during the year 
are shown below.
Under the service agreements of Mr Bright and Mr Stone, the 
Company has the right, but is not obliged, to pay salary in lieu 
of notice of termination. There are no other express provisions 
in any of the Directors’ contracts relating to termination payments.
Nature of
agreement
Effective date of
agreement
Unexpired term
at 31 December
2011
Notice
period
George Bright, Executive Director Service agreement 2 March 2004 — 12 months
Nicholas Stone, Executive Director Service agreement 20 August 2001 — 12 months
Ian Godden, Chairman Letter of appointment 1 July 2011
(1)
2.5 years 3 months
Michael Kirk, Non-Executive Director Letter of appointment 1 January 2011
(1)
1.8 years 3 months
Oliver Scott, Non-Executive Director Contract for services 1 December 2010 1.9 years 3 months
(1) Replaced earlier agreement 22 KBC Advanced Technologies plc Annual Report 2011
CORPORATE GOVERNANCE
Directors’ remuneration report continued
Review of past performance
The charts above look at the value at 31 December 2011 of £100 
invested in the Company on 1 January 2006 compared with the value 
of £100 invested in the FTSE AIM All-Share and FTSE AIM Oil & Gas 
stocks over the same period. The Company’s shares were included 
in both indices during 2011.
Directors’ interests in shares
The beneﬁcial interests of the Directors in the Ordinary share capital 
of the Company are shown on page 25.
Share options and incentive plans
The Group has operated a share option scheme and a long-term 
incentive plan, as described on the following pages. 
Share options outstanding over new shares at 31 December 2011 
are summarised in note 24 to the ﬁnancial statements. These are 
included in the details of options held by the Directors during the 
year shown on page 23.
Former share option plan
The Company previously operated a discretionary share option 
scheme (the “Executive Scheme”). Options granted under the 
Executive Scheme which remained unexercised during the year 
are exercisable between three and 10 years from the award date 
and are subject to performance conditions. Options granted to 
employees other than Directors will not normally be exercisable 
unless IIMR EPS (as deﬁned in note 10 to the ﬁnancial statements) 
increases by 5% per annum above inﬂation over a period of three 
or more years always beginning with the ﬁnancial year of the Company 
in which the option was granted. For options granted to Directors 
the performance condition is that over a period of three or more 
years always beginning with the ﬁnancial year of the Company in 
which the option was granted, the Group’s IIMR EPS must grow 
by between 5% and 9% per annum above inﬂation. If the IIMR EPS 
increase is exactly 5% per annum above inﬂation, the Director may 
exercise the option over 60% of the shares. If the IIMR EPS increase 
is 9% per annum or more above inﬂation, the Director may exercise 
the option over 100% of the shares. If the IIMR EPS increase is 
between 5% and 9% per annum above inﬂation, a proportionate 
percentage of the option may be exercised on a sliding scale.
Awards under the Executive Scheme are included in the details 
of options held by the Directors during the year shown on page 23.
Long Term Incentive Plan 2006
In summary, two types of award can be granted under the LTIP 2006:
1.  Awards of shares in the Company (“Matching Shares”), 
linked to and ‘‘matching’’ on a maximum 1:1 basis (gross 
of tax) shares acquired by participants following compulsory 
or voluntary investment of an amount equivalent to a deﬁned 
proportion of their annual bonus in shares (‘‘Deferred Shares’’). 
Executive Directors are currently required to invest the equivalent 
of 50% of any post-tax annual bonus into Deferred Shares. 
Participation for other employees is voluntary. These Matching 
Shares will ordinarily vest three years after the date of the award, 
subject to continued employment of the individual concerned 
within the Group and to the satisfaction of challenging performance 
conditions and retention of the Deferred Shares over the 
performance measurement period.
2.  Awards of Performance Shares to Executive Directors and 
selected senior managers, which again ordinarily vest three years 
after the date of the award subject to continued employment 
of the individual concerned within the Group and to the satisfaction 
of challenging performance conditions. The maximum value 
of Performance Shares that may be granted each year to an 
individual is equal to 75% of that person’s basic salary.
In 2010 all employees were invited (compelled in the case of 
Executive Directors) to participate in awards of Matching Shares. 
No bonus was payable to the Executive Directors in 2011 and no 
invitations were issued to any other employees in this period.
Awards of Performance Shares were made to Executive Directors 
and senior staff on 21 March 2011 and to other senior staff 
members on 20 September 2011 and 17 October 2011. For these 
awards (and for awards made in 2010) a performance condition 
related to underlying EPS (as deﬁned in note 10 to the ﬁnancial 
statements) has been used. The performance condition is that 
over a period of three years beginning with the ﬁnancial year 
of the Company in which the award was granted, the Group’s 
underlying EPS must grow by between 3% and 10% per annum 
above inﬂation. If the underlying EPS increase is exactly 3% per 
annum above inﬂation, the participant may exercise awards 
representing 20% of basic salary. If the underlying EPS increase 
is 10% per annum or more above inﬂation, the participant may 
exercise awards representing 75% of basic salary. Such awards 
will vest on a sliding scale between these EPS targets.
No awards of Matching Shares were made to Executive Directors or 
other staff during 2011. For the awards made in 2010 the performance 
condition is that over a period of three years beginning with the 
ﬁnancial year of the Company in which the award was granted, the 
Group’s underlying EPS must grow by between 3% and 7.5% per 
annum above inﬂation. If the underlying EPS increase is exactly 3% 
per annum above inﬂation, the participant may exercise 25% of the 
award. If the underlying EPS increase is 7.5% per annum or more 
above inﬂation, the participant may exercise 100% of the award. 
Such awards will vest on a sliding scale between these EPS targets. 
The Committee will keep the continued sole use of underlying 
EPS as a measure of performance under review.
Awards under the LTIP 2006 are included in the details of options 
held by the Directors during the year shown on page 23.
The Executive Directors are subject to a shareholding guideline 
under which each Executive Director is required to retain no less 
than 50% of shares vesting under the LTIP 2006 (net of those sold
250
200
150
100
50
0
31 Dec 06 31 Dec 07 31 Dec 08 31 Dec 09 31 Dec 10 31 Dec 11
FTSE  AIM All-Share Index KBC
Source: Thomson Reuters (Datastream)
Total shareholder return
250
200
150
100
50
0
31 Dec 06 31 Dec 07 31 Dec 08 31 Dec 09 31 Dec 10 31 Dec 11
FTSE  AIM Oil & Gas Index KBC
Source: Thomson Reuters (Datastream) OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
23 KBC Advanced Technologies plc Annual Report 2011
Long Term Incentive Plan 2006 continued 
to meet tax liabilities) until such time as a shareholding equal to 
75% of basic salary is achieved (with pre-existing shareholdings 
taken into account).
Employee Trust
The KBC Advanced Technologies plc Employee Trust (the “Trust”) 
is available to transfer existing issued shares in the Company upon 
exercise of share options and a committee determines the extent 
to which the Trust is used for this purpose. In line with the policy 
the Committee from time to time recommends that the Group lends 
funds to the Trust to enable it to acquire shares for this purpose.
Directors’ interests in share options 
and Long Term Incentive Plan awards
The interests of the Directors in options to purchase or subscribe for 
shares of the Company, which include options granted by the Trust, 
are set out above. Awards under the Group’ s long term incentive plans 
are also included. Performance conditions for all options and awards 
are shown on page 22.
During 2010 the vesting date for share options vesting in the year was 
accelerated for UK taxpayers in order to allow exercise in the tax year 
2009/10 in view of the increase in income tax rates introduced in the 
tax year 2010/11. Mr Stone and other employees who beneﬁted from 
this change were required to agree to reimburse the Company if they 
left employment before the options would otherwise have vested.
Options were exercised by Directors during the year ended 
31 December 2010 as shown below.
None of the Non-Executive Directors has any interest in options to 
acquire shares in the Company.
The interests of the Directors to subscribe for or acquire Ordinary 
shares have not changed up to the date of this report.
The mid market price of the Company’s shares at the end of the 
year was 68.5p and the range of mid market prices during the year 
was between 57.0p and 78.5p.
Options exercised by Directors during the year ended 31 December 2010
Directors’ interests in share options and Long Term Incentive Plan awards
 
at
1 January
2011
(1)
Exercised Granted Lapsed
at
31 December
2011
Exercise
price
Pence
Mid market
closing price
 (if higher)
(2)
Pence
Period
during which
options are
exercisable
Net value at
31 December
2011
(3)
£
W G Bright 
Executive Scheme 15,000 15,000 127.50 — n/a n/a
Executive Scheme 10,500 10,500 110.00 — 2005–2012 —
Executive Scheme 95,803 95,803 33.50 — 2006–2013 33,531
LTIP 112,457 112,457 0.00 39.50 n/a n/a
LTIP
(4)(5)
108,890 108,890 0.00 52.50 n/a n/a
LTIP 151,049 151,049 0.00 33.00 2012–2013 103,469
LTIP
(4)(5)
182,844 182,844 0.00 44.00 2012–2013 125,248
LTIP 111,195 111,195 0.00 48.50 2013–2014 76,169
LTIP
(4)(5)
12,686 12,686 0.00 45.00 2013–2014 8,690
LTIP  128,232  128,232 0.00 68.50 2014–2015 87,839
 
N P Stone 
Executive Scheme 100,000 100,000 146.50 — n/a n/a
LTIP 97,972 97,972 0.00 39.50 n/a n/a
LTIP
(4)(5)
93,029 93,029 0.00 52.50 n/a n/a
LTIP
(4)
122,078 122,078 0.00 33.00 2012–2013 83,623
LTIP
(4)(5)
133,484 133,484 0.00 44.00 2012–2013 91,437
LTIP 82,215 82,215 0.00 48.50 2013–2014 56,317
LTIP
(4)(5)
13,042 13,042 0.00 45.00 2013–2014 8,934
LTIP  99,506  99,506 0.00 68.50 2014–2015 68,162
(1) Or on appointment if later.
(2) On day immediately prior to date of the award.
(3)  Net value of options are calculated using mid market price of the Company’s shares at the end of the year, less exercise price. Net values are before performance criteria, which will 
determine the extent to which exercise is permitted.
(4) Intended to be satisﬁed by shares purchased in the market.
(5) Matching Shares linked to Deferred Shares acquired by the Director as described on page 22.
at
1 January
2010
(1)
Exercised Granted Lapsed
at
31 December
2010
Exercise
price
Pence
Mid market
closing price
(if higher)
(2)
Pence
Period
during which
options are
exercisable
Net value at
31 December
2010
£
W G Bright 
LTIP
(4)
83,210 83,210 — — — 0.00 51.25 n/a n/a
LTIP
(4)(5)
69,033 69,033 — — — 0.00 48.00 n/a  n/a
N P Stone 
LTIP
(4)
71,394 71,394——— 0.00 51.25 n/a n/a
LTIP
(4)(5)
63,840 63,840 — — — 0.00 48.00 n/a n/a
(1) Or on appointment if later.
(2) On day immediately prior to date of the award. 24 KBC Advanced Technologies plc Annual Report 2011
George Bright exercised options during 2011 and realised a cash 
gain of £56,447 through sale of some of the shares acquired in order 
to fund the tax liability upon exercise of the options. 
Nicholas Stone exercised options during 2011 and realised a cash 
gain of £100,827 through sale of some of the shares acquired, in part 
to fund the tax liability upon exercise of the options. 
Mr Bright exercised options during 2010 and realised a cash gain 
of £26,986 through sale of some of the shares acquired in order to 
fund the tax liability upon exercise of the options. 
Mr Stone exercised options during 2010 and realised a cash gain 
of £24,250 through sale of some of the shares acquired in order 
to partially fund the tax liability upon exercise of the options. 
Mr Bright participates in the Group’s Proﬁt Sharing/401(k) Plan, 
a deﬁned contribution employee beneﬁt plan in the USA. The 
employer’s contribution in Mr Bright’s case is 8% of aggregate 
basic salary in a full year up to a maximum salary of US$245,000 
per annum.
Mr Stone is a member of the Group Personal Pension Plan 
(a deﬁned contribution scheme) operated by the Group in the UK. 
The employer’s normal contributions amount to 10% of aggregate 
basic salary in the year. 
No payments were made, or beneﬁts accrued, under any other 
pension arrangements.
The charges to the Income statement in the year for share-based 
incentives in respect of the Directors were: Mr Bright £49,000 
(2010: £56,000); and Mr Stone £33,000 (2010: £39,000).
By order of the Board
Janet Ireland
Company Secretary
13 March 2012
Directors’ remuneration
Directors’ remuneration comprised:
2011
£000
2010
£000
Emoluments: 
–basic salaries 581 549
–compensation for loss of ofﬁce — — 
–bonus — —
–expense of share-based payments 82 95
–beneﬁts 51 40
714 684
–fees 33 34
747 718
–pension contributions 31 31
778 749
Salary
and fees
£000
Beneﬁts
(1)
£000
Bonus
payment
£000
2011
Total
£000
2010
Total
£000
2011
Pension
£000
2010
Pension
£000
Executive Directors   
George Bright
(2)
264 44 — 308 305 12 13
Nicholas Stone 203 7 — 210 202 19 18 
Non-Executive Directors 
Ian Godden 54 — — 54 31 — —
Michael Kirk 49 — — 49 31 — —
Ian Miller
(3)
11 — — 11 51 — —
Oliver Scott 33 — — 33 3 — —
614 51 — 665 623 31 31 
(1) Beneﬁts are made up primarily of private health care, life assurance, disability insurance and provision of car allowance.
(2) Remuneration was paid in US dollars and has been translated at an average rate of $1.61 for 2011.
(3) Resigned as a Director 31 December 2010.
The remuneration of individual Directors was as follows:
CORPORATE GOVERNANCE
Directors’ remuneration report continued OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
25 KBC Advanced Technologies plc Annual Report 2011
The Directors present their report and audited ﬁnancial statements 
for the year ended 31 December 2011.
Business review and principal activities
The principal activity of the Group is the provision of consultancy 
and software to the hydrocarbon and energy industries worldwide. 
In addition to subsidiary undertakings, the Group operates through 
branches present in the Netherlands, Japan, South Korea and 
representative ofﬁces in the Russian Federation and Bahrain.
Key Performance Indicators used in the business are shown 
in the graphs on pages 1, 4 and 5, and in the Business review 
on pages 8 and 15. A more detailed review of the development 
and performance of the business is given in the Chairman’s 
statement on pages 6 and 7 and in the Business review on pages 8 
to 15. Principal risks and uncertainties facing the Company and its 
subsidiary undertakings and how they are controlled are described 
in the Business review on page 15. Information relating to the 
environment and staff matters is given below.
Results and dividends
The results for the year are set out in the Group income statement 
on page 29.
An interim dividend of 0.7p per 2.5p Ordinary share was paid 
to shareholders on 12 October 2011. The Board recommends 
a ﬁnal dividend of 1.55p per 2.5p Ordinary share. The dividend, 
if approved, will be paid on 15 May 2012 to shareholders on the 
register at close of business on 4 May 2012.
Directors and their interests
The Directors during the year are shown in the table below. 
The interests of the Directors in the share capital of the Company 
(all beneﬁcially held except where noted) at 31 December 2011 
are shown below.
There have been no other changes in the shareholdings of 
current Directors up to the date of these ﬁnancial statements 
other than as shown below.
The interests of the Executive Directors in options to acquire shares 
of the Company, which includes options granted by the Trust and 
awards under the Company’s Long Term Incentive Plans, are shown 
on page 23. None of the Non-Executive Directors has any interest 
in options to acquire shares in the Company.
Employees
The Group continues to place a high emphasis on attracting, 
retaining and developing employees to achieve the Group’s 
business plan objectives. The Group pursues an active policy 
of employee involvement and development, including 
communication through staff meetings, written communications 
to all staff and use of the Group’ s intranet. Employees are provided 
CORPORATE GOVERNANCE
Directors’ report
with information on matters affecting them as employees, 
on developments within the business and on the various factors 
affecting the Group’s performance. Group policies and practices 
are continually reviewed and improved as required to meet the 
needs of employees and the business.
The Group is committed to providing equality of opportunity 
for all employees and in particular ensures that fair selection 
and development procedures apply. The aim of the Group’ s policy 
is to ensure that no job applicant or employee receives less 
favourable treatment than any other on the grounds of age, 
sex, sexual orientation, disability, marital status, colour, religion, 
race or ethnic origin.
The Group encourages the involvement of employees in the 
Group’s success through share incentive schemes, as well as 
a bonus scheme which emphasises performance and delivery 
of business plan objectives.
There is a formal reward and recognition programme to 
encourage and reward outstanding employee and team 
performance. The programme provides cash awards, which 
are separate and distinct from salary, and formally recognises 
employees who make a speciﬁc, extraordinary and measurable 
contribution to the proﬁtability, productivity or efﬁciency 
of the Group.
Ethics
The Group has well established policies on business ethics. 
Employees are given a copy of the policies on joining the Group 
and all employees are required to review the policies regularly 
and to report any non-compliance or suspicion of non-compliance. 
A regular review emphasises understanding of the policies, 
consultation where required and sound judgement. The results 
of reviews are reported to the Board, via the Audit Committee.
Substantial shareholdings
At 31 December 2011 the Company had been notiﬁed of 
the interests shown on the following page, excluding those 
of Directors, in 3% or more of its issued share capital.
As at 22 February 2012 the Company had been notiﬁed 
of the interests shown on the following page, excluding 
those of Directors, in 3% or more of its issued share capital.
Corporate governance
Information concerning corporate governance is set out in 
the Corporate governance statement on pages 18 to 20.
Health, safety and environmental (“HSE”) issues
The Group is committed to upholding the highest standards 
of HSE protection for the beneﬁt of its employees, the public 
at large and the environment. The Group’s commitment to the 
Interests of the Directors in the share capital of the Company
 
2.5p Ordinary shares
At
1 January
2011
(1)
At
31 December
2011
(2)
George Bright 474,865 615,243
Ian Godden 40,000 40,000
Michael Kirk 30,000 30,000
Oliver Scott
(3)
1,655,000 2,708,810
Nicholas Stone 357,780 405,609
(1)  Or at date of appointment if later.
(2) Or at date of resignation if earlier.
(3)  Non-beneﬁcial interest held through Kestrel Opportunities Fund (“Kestrel Opportunities”). Kestrel Opportunities acquired a further 55,000 Ordinary shares of 2.5p each in the 
Company on 12 January 2012. 26 KBC Advanced Technologies plc Annual Report 2011
Health, safety and environmental (“HSE”) 
issues continued
health and safety of its staff is set out in its health and safety 
policy issued by the Chief Executive, the Director responsible for 
health and safety management. The Group’s policy for employees 
working on clients’ sites is that industry best practice is observed 
as a minimum even when local requirements fall short of these 
standards. Safety issues, together with the control measures in 
place, form part of the Group’s risk-based internal control system. 
The Board receives regular reports on health and safety issues.
The Group’s premises are composed entirely of ofﬁces since it 
has no manufacturing capability. Its operations have a limited direct 
impact on the environment, involving neither hazardous substances 
nor complex waste emissions. However, the Group is conscious 
of the need for best practice wherever possible in such matters as 
recycling and general conservation of resources as may be relevant.
Payment of suppliers
It is the Group’s policy to agree terms of payment with suppliers 
and to adhere to the terms agreed. At 31 December 2011 the Group 
had an average of 27 days’ purchases outstanding in trade creditors 
(2010: 38 days’).
Charitable donations
During the year the Group made charitable donations of £7,056 
(2010: £1,244). There were no political contributions (2010: £nil).
Litigation
As mentioned in recent announcements, in 2011 an award 
in arbitration was made in favour of KBC which dismissed as 
unfounded all the allegations made by a competitor that KBC 
was making unauthorised use of certain software code.
Name
Percentage
of issued
share capital
AXA SA, UK 15.45
Gartmore Investment Management PLC, UK 11.98
BlackRock Investment Management, UK 8.26
Kestrel Partners LLP, UK 4.93
P J Close 4.85
Aviva PLC, UK 3.35
Name
Percentage
of issued
share capital
AXA SA, UK 15.45
Gartmore Investment Management PLC, UK 11.98
BlackRock Investment Management, UK 8.26
P J Close 4.85
Kestrel Partners LLP, UK 4.84
Prudential Group PLC, UK 3.94
Aviva PLC, UK 3.35
The Company was involved in no other litigation proceedings 
during 2011.
Financial instruments
An explanation of the Group’ s ﬁnancial risk management objectives, 
policies and strategies is set out in the Business review on page 15 
and in note 22.
Outstanding shareholders’ authority
The authority granted on 11 May 2011 by the shareholders for 
the Company to make market purchases, within the meaning 
of Section 693 of the Companies Act 2006, of up to 8,314,601 
Ordinary shares of 2.5p each in the capital of the Company 
remains outstanding until the earlier of the conclusion of the 
Annual General Meeting of the Company in 2012 or 30 June 2012.
Shares issued
The Company issued no shares during 2011 other than in connection 
with the operation of its employee share incentive schemes.
Disclosure of information to auditors
All of the current Directors have taken all the steps that they 
ought to have taken to make themselves aware of any information 
needed by the Company’s auditors for the purposes of their audit 
and to establish that the auditors are aware of that information. 
The Directors are not aware of any relevant audit information 
of which the auditors are unaware.
Registered auditors
A resolution to re-appoint BDO LLP as the Company’s auditors 
and to authorise the Directors to ﬁx their remuneration will be 
put to the members at the Annual General Meeting.
Substantial shareholdings as at 31 December 2011 
Substantial shareholdings as at 22 February 2012 
CORPORATE GOVERNANCE
Directors’ report continued OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
27 KBC Advanced Technologies plc Annual Report 2011
Directors’ responsibility for the ﬁnancial statements
The Directors are responsible for preparing the Annual Report 
and the ﬁnancial statements in accordance with applicable law 
and regulations. 
Company law requires the Directors to prepare ﬁnancial 
statements for each ﬁnancial year. Under that law the Directors 
have elected to prepare the Group ﬁnancial statements in 
accordance with International Financial Reporting Standards 
(IFRSs) as adopted by the European Union and the Company 
ﬁnancial statements in accordance with United Kingdom 
Generally Accepted Accounting Practice (United Kingdom 
Accounting Standards and applicable law). Under company law 
the Directors must not approve the ﬁnancial statements unless 
they are satisﬁed that they give a true and fair view of the state 
of affairs of the Group and the Company and of the proﬁt or loss 
of the Group for that period. The Directors are also required to 
prepare ﬁnancial statements in accordance with the rules of the 
London Stock Exchange for companies trading securities on AIM. 
In preparing these ﬁnancial statements, the Directors are 
required to:
–  select suitable accounting policies and then apply 
them consistently;
–  make judgements and accounting estimates that are 
reasonable and prudent;
–  state whether the Group ﬁnancial statements have been prepared 
in accordance with IFRSs as adopted by the European Union, 
subject to any material departures disclosed and explained 
in the ﬁnancial statements;
–  state whether the Company ﬁnancial statements have been 
prepared in accordance with United Kingdom Generally 
Accepted Accounting Practice (United Kingdom Accounting 
Standards and applicable law), subject to any material 
departures disclosed and explained in the ﬁnancial 
statements; and
–  prepare the ﬁnancial statements on the going concern basis 
unless it is inappropriate to presume that the Company will 
continue in business.
The Directors are responsible for keeping adequate accounting 
records that are sufﬁcient to show and explain the Company’s 
transactions and disclose with reasonable accuracy at any time 
the ﬁnancial position of the Company and enable them to ensure 
that the ﬁnancial statements comply with the requirements of the 
Companies Act 2006. They are also responsible for safeguarding 
the assets of the Company and hence for taking reasonable steps 
for the prevention and detection of fraud and other irregularities.
The Directors are responsible for ensuring the Annual Report 
and the ﬁnancial statements are made available on a website. 
Financial statements are published on the Company’s website 
in accordance with legislation in the United Kingdom governing 
the preparation and dissemination of ﬁnancial statements, which 
may vary from legislation in other jurisdictions. The maintenance 
and integrity of the Company’s website is the responsibility of 
the Directors. The Directors’ responsibility also extends to the 
ongoing integrity of the ﬁnancial statements contained therein.
Each of the Directors, whose names and functions are listed on 
page 16, conﬁrm that, to the best of each person’s knowledge 
and belief:
–  the ﬁnancial statements, prepared in accordance with IFRSs 
as adopted by the European Union, give a true and fair view 
of the assets, liabilities, ﬁnancial position and proﬁt of the 
Group and the Company; and
–  the Directors’ report includes a fair review of the 
development and performance of the business and the 
position of the Company and the Group, together with 
a description of the principal risks and uncertainties that 
they face.
By order of the Board
Janet Ireland
Company Secretary
13 March 2012 28 KBC Advanced Technologies plc Annual Report 2011
We have audited the ﬁnancial statements of KBC Advanced Technologies plc for the year ended 31 December 2011 which comprise the 
Group income statement, the Group statement of comprehensive income, the Group statement of changes in equity, the Group and 
Company balance sheets, the Group cash ﬂow statement and the related notes. The ﬁnancial reporting framework that has been applied 
in the preparation of the Group ﬁnancial statements is applicable law and International Financial Reporting Standards (“IFRSs”) as adopted 
by the European Union. The ﬁnancial reporting framework that has been applied in the preparation of the parent company ﬁnancial 
statements is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them 
in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone 
other than the Company and the Company’s members as a body, for our audit work, for this report or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the statement of Directors’ responsibility for the ﬁnancial statements, the Directors are responsible for 
the preparation of the ﬁnancial statements and for being satisﬁed that they give a true and fair view. Our responsibility is to audit 
and express an opinion on the ﬁnancial statements in accordance with applicable law and International Standards on Auditing 
(UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (“APB’s”) Ethical Standards for Auditors. 
Scope of the audit of the ﬁnancial statements
A description of the scope of an audit of ﬁnancial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm.
Opinion on ﬁnancial statements
In our opinion: 
–  the ﬁnancial statements give a true and fair view of the state of the Group’s and the parent company’s affairs as at 31 December 2011 
and of the Group’s proﬁt for the year then ended;
–  the Group ﬁnancial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
–  the parent company’s ﬁnancial statements have been properly prepared in accordance with United Kingdom Generally Accepted 
Accounting Practice; and
– the ﬁnancial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ report for the ﬁnancial year for which the ﬁnancial statements are prepared 
is consistent with the ﬁnancial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
–  adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received 
from branches not visited by us; or
– the parent company ﬁnancial statements are not in agreement with the accounting records and returns; or
– certain disclosures of Directors’ remuneration speciﬁed by law are not made; or
– we have not received all the information and explanations we require for our audit.
John Everingham (senior statutory auditor)
For and on behalf of BDO LLP , statutory auditor
Epsom
United Kingdom
13 March 2012
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
FINANCIAL STATEMENTS
Independent auditors’ report
to the members of KBC Advanced Technologies plc OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
29 KBC Advanced Technologies plc Annual Report 2011
Note
2011
£000
2010
£000
Revenue 3 55,725 53,061
Direct costs (7,412) (6,472)
Staff and associate costs 8 (30,822) (29,539)
Depreciation and amortisation (1,169) (1,173)
Other operating charges (11,311) (12,101)
Operating proﬁt 5 5,011 3,776
Finance revenue 6 20 7
Finance cost 6 (101) (135)
Proﬁt before tax 4,930 3,648
Tax expense 9 (1,673) (1,431)
Proﬁt for the year 3,257 2,217
Earnings per share 
Basic 10 5.9p 4.0p
Diluted 10 5.9p 4.0p
2011
£000
2010
£000
Proﬁt for the year 3,257 2,217
Other comprehensive income:  
– exchange differences on translation of foreign operations recognised directly in equity 58 875
Total comprehensive income recognised in the year 3,315 3,092
FINANCIAL STATEMENTS
Group income statement
for the year ended 31 December 2011
Group statement of comprehensive income
for the year ended 31 December 2011 30 KBC Advanced Technologies plc Annual Report 2011
Share
capital
£000
Share
premium
£000
Capital
redemption
reserve
£000
Merger
reserve
£000
Own
shares
£000
Share-
based
payments
£000
Foreign
exchange
reserve
£000
Retained
earnings
£000
Total
£000
At 1 January 2010 1,429 8,060 55 929 (452) 1,305 1,497 16,273 29,096
Proﬁt for the year ——————— 2,217 2,217
Other comprehensive income —————— 875— 875
Total comprehensive income —————— 875 2,217 3,092
Share-based payments ————— 275—— 275
Exchange translation adjustment —————— 17 — 17
Shares issued 15 12—— (13) ——— 14
Shares purchased ———— (267) ——— (267)
Shares cancelled (58) — 58———— (1,182) (1,182)
Utilisation of own shares ———— 487—— (487) —
Dividends — —————— (916) (916)
At 1 January 2011 1,386 8,072 113 929 (245) 1,580 2,389 15,905 30,129
Proﬁt for the year ——————— 3,257 3,257
Other comprehensive income —————— 58 — 58
Total comprehensive income —————— 58 3,257 3,315
Share-based payments ————— 300—— 300
Exchange translation adjustment —————— 5— 5
Shares issued 14 9—— (13) ——— 10
Shares purchased ———— (162) ——— (162)
Utilisation of own shares ———— 245—— (245) —
Dividends — —————— (1,100) (1,100)
At 31 December 2011 1,400 8,081 113 929 (175) 1,880 2,452 17,817 32,497
The amount included in the foreign exchange reserve represents other comprehensive income for each component net of tax (see note 9d).
FINANCIAL STATEMENTS
Group statement of changes in equity
for the year ended 31 December 2011 OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
31 KBC Advanced Technologies plc Annual Report 2011
Note
2011
£000
2010
£000
Non-current assets 
Property, plant and equipment 12 1,255 1,299
Goodwill 13 7,505 7,479
Other intangible assets 13 1,367 1,413
Deferred tax assets 9 2,764 3,233
12,891 13,424
Current assets 
Trade and other receivables 16 22,860 23,219
Current tax receivable 568 314
Cash and cash equivalents 17 5,815 4,506
Other ﬁnancial assets 18 54 —
29,297 28,039
Total assets 42,188 41,463
Non-current liabilities 
Deferred tax liabilities 9 (1,197) (1,337)
(1,197) (1,337)
Current liabilities 
Trade and other payables 19 (7,850) (8,858)
Current tax payable (644) (1,132)
Other ﬁnancial liabilities 20 — (7)
(8,494) (9,997)
Total liabilities (9,691) (11,334)
Net assets 32,497 30,129
Equity attributable to equity holders of parent 
Share capital 23 1,400 1,386
Share premium 25 8,081 8,072
Other reserves 25 1,042 1,042
Own shares 25 (175) (245)
Retained earnings 22,149 19,874
Total equity 32,497 30,129
Total equity and liabilities 42,188 41,463
The ﬁnancial statements on pages 29 to 51 were approved and authorised for issue by the Board of Directors on 13 March 2012 
and were signed on its behalf by:
George Bright  Nicholas Stone
Director  Director
FINANCIAL STATEMENTS
Group balance sheet
at 31 December 2011 32 KBC Advanced Technologies plc Annual Report 2011
Note
2011
£000
2010
£000
Cash ﬂows from operating activities 
Proﬁt before tax 4,930 3,648
Finance revenue 6 (20) (7)
Finance cost 6 101 135
Operating proﬁt 5,011 3,776
Depreciation and amortisation 12, 13 1,169 1,173
Share-based payment expense 24 300 275
Movement in working capital 17 (766) 642
Cash generated from operations 5,714 5,866
Finance revenue received 20 7
Finance costs paid (101) (135)
Income taxes paid (2,086) (1,557)
Net cash ﬂows from operating activities 3,547 4,181
Investing activities 
Purchase of tangible non-current assets 12 (443) (269)
Purchase of intangible non-current assets 13 (635) (1,068)
Payment of deferred consideration for purchase of subsidiary undertaking — (156)
Net cash used in investing activities (1,078) (1,493)
Financing activities 
Dividends paid to equity holders of parent (1,100) (916)
Purchase of own shares (175) (1,462)
Issue of shares 23 27
Net cash used in ﬁnancing activities (1,252) (2,351)
Net increase in cash and cash equivalents 1,217 337
Cash and cash equivalents at 1 January 4,506 3,975
Exchange adjustments 92 194
Cash and cash equivalents at 31 December 17 5,815 4,506
FINANCIAL STATEMENTS
Group cash ﬂow statement
for the year ended 31 December 2011 OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
33 KBC Advanced Technologies plc Annual Report 2011
1. Accounting policies
KBC Advanced Technolgies plc is a public limited company incorporated and domiciled in England and Wales. The Company’s Ordinary 
shares are traded on AIM, part of the London Stock Exchange.
Basis of preparation
The principal accounting policies adopted in the preparation of the ﬁnancial statements are set out below. The policies have been 
consistently applied to all the years presented, unless otherwise stated.
The Group ﬁnancial statements have been prepared in accordance with International Financial Reporting Standards (“IFRSs”) as adopted 
by the European Union and as applied in accordance with the provisions of the Companies Act 2006. The principal accounting policies 
adopted by the Group are set out in this note and those adopted by the Company in note 31.
The Group ﬁnancial statements are presented in sterling, rounded to the nearest thousand pounds (£000) except where otherwise indicated. 
They are prepared on the historical cost basis except that certain ﬁnancial instruments are stated at fair value.
Changes in accounting policies
a. New standards, interpretations and amendments effective from 1 January 2011
None of the new standards, interpretations and amendments, effective for the ﬁrst time from 1 January 2011, have had a material effect 
on the ﬁnancial statements.
b. New standards, interpretations and amendments not yet effective
The Group has not applied the following new standards, interpretations and amendments that have been issued but are not yet effective:
International Accounting Standards (“IAS”/”IFRS”) Effective date
IFRS 7(i) (amendment) Transfers of ﬁnancial assets 1 July 2011
IAS 12 (amendment) Recovery of underlying assets 1 January 2012
IAS 1 (amendment) Presentation of items of other comprehensive income 1 July 2012
IFRS 7(ii) (amendment) Disclosures – offsetting ﬁnancial assets and liabilities 1 January 2013
IFRS 10 Consolidated ﬁnancial statements 1 January 2013
IFRS 12 Disclosure of interests in other entities 1 January 2013
IFRS 13 Fair value measurement 1 January 2013
IAS 27 Separate ﬁnancial statements 1 January 2013
IAS 19 Employee beneﬁts 1 January 2013
IAS 32 (amendment) Offsetting ﬁnancial assets and liabilities 1 January 2014
IFRS 9 Financial instruments 1 January 2015
Of the above the following have been endorsed by the EU as at 13 March 2012: IFRS 7(i).
The Directors are assessing whether the adoption of these standards, interpretations and amendments will have a material impact on the 
Group’s ﬁnancial statements in the period of initial application.
Basis of consolidation
The Group ﬁnancial statements include the ﬁnancial statements of the Company and all the subsidiaries drawn up to 31 December each 
year during the years reported for the periods during which they were members of the Group. On acquisition, assets and liabilities of 
subsidiaries are measured at their fair values at the date of acquisition with any excess of the cost of acquisition over this value being 
capitalised as goodwill.
Revenue
Fixed price service contracts
Revenue on ﬁxed price service contracts is recognised using the percentage-of-completion method. Under this method revenues recorded 
represent the aggregate of costs incurred during the year and a portion of estimated proﬁt on individual contracts based on the relationship 
of costs incurred to total estimated costs for each contract. Revisions in estimates are reﬂected in the accounting period when the revision 
becomes known. Anticipated losses on contracts are charged to income in their entirety when the losses become evident.
Amounts received in excess of revenue recognised are shown as deferred revenue.
Service consulting and software support
Revenue from service consulting and software support is recognised over the period in which services are provided.
Software licences
Revenue from licence sales is recognised once the software has been delivered and when no signiﬁcant contractual obligations remain. 
Revenue from ongoing maintenance, support and upgrades is recognised over the contractually agreed period.
Bonuses and penalties
Where some or all of a contract’s revenues are dependent on the impact of KBC’s performance (e.g. in identifying beneﬁts of changes 
in a client’s operations), that element of revenue is only recognised once the contract is sufﬁciently advanced that it is probable that the 
performance target will be met and the bonus can be measured reliably. Penalties on contracts are provided for at the Directors’ best 
estimate of the expenditure required to settle the Group’s liability.
Direct costs and operating charges
Direct costs include costs of subcontractors. Operating charges include administrative overheads.
FINANCIAL STATEMENTS
Notes to the ﬁnancial statements 34 KBC Advanced Technologies plc Annual Report 2011
FINANCIAL STATEMENTS
Notes to the ﬁnancial statements continued
1. Accounting policies continued
Research and development
Research costs are expensed as incurred. Development expenditure incurred on an individual project is carried forward when its future 
recoverability can reasonably be regarded as assured and technical feasibility and commercial viability can be demonstrated. Where these 
criteria are not met the expenditure is expensed to the income statement.
Following the initial recognition of development expenditure the cost model is applied requiring the asset to be carried at cost less any 
accumulated amortisation and accumulated impairment losses. Any expenditure carried forward is amortised over the period of expected 
future sales from the related project. The carrying value of development costs is reviewed for impairment annually when the asset is not 
yet in use, or more frequently when an indicator of impairment arises during the reporting year indicating that the carrying value may 
not be recoverable.
The technical and market uncertainties inherent in the development of new products mean that internal development costs will not 
be capitalised as intangible ﬁxed assets until commercial viability of a project is demonstrable and there is probable economic beneﬁt. 
Expenditure on product maintenance and support is expensed as incurred.
Non-controlling interests
The losses of non-wholly owned subsidiaries are attributed entirely to the Group, in accordance with the shareholder agreement 
and articles of association. 
Goodwill
Goodwill on acquisition is initially measured at cost, being the excess of the cost of the business combination over the acquirer’s interest 
in the net fair value of the identiﬁable assets, liabilities and contingent liabilities. Following initial recognition, goodwill is measured 
at cost less any accumulated impairment losses. Goodwill is reviewed for impairment annually or more frequently if events or changes 
in circumstances indicate that the carrying value may be impaired.
For the purpose of impairment testing, goodwill is allocated to the related cash-generating units monitored by management. Where the 
recoverable amount of the cash-generating unit is less than its carrying amount, including goodwill, an impairment loss is recognised in 
the income statement.
Impairment of assets
The Group assesses at each reporting date whether there is an indication that goodwill, intangibles or property, plant and equipment 
may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate 
of the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs 
to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inﬂows that are largely 
independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the 
asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash ﬂows 
are discounted to their present value using a pre-tax discount rate that reﬂects current market assessments of the time value of money 
and the risks speciﬁc to the asset. Impairment losses of continuing operations are recognised in the income statement in those expense 
categories consistent with the function of the impaired asset.
Trade and other receivables
Trade receivables, which generally have 30–90 day terms, are recognised and carried at the lower of their original invoiced value 
and recoverable amount. Provision for potential bad debts is made when there is objective evidence that the Group will not be able 
to recover balances in full. The main factors used in assessing such impairment of trade receivables are the age of the balance and the 
circumstances of the individual customer. When the probability of recovery of a debtor balance is assessed as being remote, it is written 
off, together with any associated provision.
Foreign currencies
Transactions in foreign currencies are recorded in the functional currency at the rate ruling at the date of the transaction. All monetary 
assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. 
Forward exchange contracts taken to hedge the value of future revenue streams do not qualify for hedge accounting under IAS 39. 
Changes in fair value are recognised in each period. All differences are taken to the income statement.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at 
the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange 
rates at the dates when the fair values are determined.
Proﬁts, losses and cash ﬂows of overseas branches and subsidiary undertakings are translated at the average rate of exchange ruling during 
the period as it is a reasonable approximation of the actual transaction rate. The balance sheets of overseas branches and subsidiaries 
are translated at the rate of exchange ruling at the balance sheet date.
The exchange differences arising on the retranslation of opening net assets and of results for the year are taken directly to reserves until 
the disposal of the net investments, at which time they are recognised in the income statement. The cumulative translation differences 
for foreign subsidiaries were deemed to be zero at the transition date for the adoption of IFRS. All other translation differences are taken 
to the income statement.
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short-term deposits with an original maturity 
of three months or less.
For the purpose of the consolidated cash ﬂow statement, cash and cash equivalents consist of cash and cash equivalents as deﬁned 
above, net of outstanding bank overdrafts. OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
35 KBC Advanced Technologies plc Annual Report 2011
1. Accounting policies continued
Financial instruments
Financial assets and ﬁnancial liabilities, in respect of ﬁnancial instruments, are recognised on the Group balance sheet when the Group 
becomes a party to the contractual provisions of the instrument.
Financial instruments are initially recorded at fair value. Subsequent valuation depends on the designation of the instrument.
Non-derivative ﬁnancial instruments
The Group’s non-derivative ﬁnancial instruments comprise trade receivables, trade payables, cash and cash equivalents. Cash and cash 
equivalents comprise cash balances and deposits with maturities of three months or less at inception.
Trade receivables and payables are measured initially at fair value and subsequently at amortised cost. Trade receivables are stated net 
of allowances for irrecoverable amounts.
The fair values of non-derivative ﬁnancial instruments are approximately equal to their book values.
Derivative ﬁnancial instruments and hedge accounting
Derivative ﬁnancial instruments are initially recognised and measured at fair value on the date a derivative contract is entered into 
and subsequently measured at fair value. The gain or loss on re-measurement is taken to the income statement.
The Group employs derivative ﬁnancial instruments, in the form of forward foreign exchange contracts, to mitigate currency exposures 
on trading transactions. The Group does not hedge forecast transactions that will result in the recognition of a non-ﬁnancial asset or liability. 
Fair values of derivative ﬁnancial instruments are based on the market values of similar instruments at the reporting date.
Retirement beneﬁt costs
The Group operates contributory pension schemes covering the majority of its permanent employees. The schemes’ funds are administered 
by trustees and are independent of the Group’s ﬁnances. The schemes are deﬁned contribution schemes and there are no commitments 
other than the regular contributions which are charged against the income statement in the year in which they become payable.
Share-based payments
The Group operates a number of executive and employee share schemes. The cost of equity settled transactions with employees is 
measured by reference to the fair value at the date at which they are granted and is recognised as an expense over the vesting period, 
which ends on the date on which the relevant employee becomes fully entitled to the award. The cumulative expense recognised at 
each reporting date reﬂects the extent to which the vesting period has elapsed and the number of awards that, in the opinion of the 
Directors of the Group at that date, will vest and for which the performance conditions will be met. At each balance sheet date before 
vesting, the cumulative expense is calculated and the movement in cumulative expense since the previous balance sheet date is recognised 
in the income statement, with a corresponding entry in equity. No expense is recognised for awards that do not ultimately vest.
Leasing commitments – lessee
Leases where the lessor retains substantially all the risks and beneﬁts of ownership of the asset are classiﬁed as operating leases and are 
charged to the income statement on a straight-line basis over the lease term.
Leasing commitments – lessor
Where the Group has sublet part of its premises, income is taken to the income statement on a straight-line basis over the sublease term.
Intangible assets
Intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss. Amortisation is provided on all 
intangibles at rates calculated to write off the cost of each asset over its expected useful life for a period of up to 10 years.
Externally acquired intangible assets comprise intellectual property and other intangibles, which include purchased patents, know-how, 
trademarks, licences and distribution rights. These are capitalised at cost and amortised on a straight-line basis over their estimated 
useful economic lives.
Internally generated intangibles assets comprise development costs.
Current estimates of useful economic life of intangible assets are as follows:
Goodwill     Indeﬁnite
Intellectual property   Six years
Development costs (internally generated) One to ﬁve years
Other intangibles    Five years
Current and deferred tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based 
on tax rates and laws that are enacted or substantively enacted by the balance sheet date.
Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying 
amounts in the ﬁnancial statements, with the following exceptions:
 – where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business 
combination that at the time of the transaction affects neither accounting nor taxable proﬁt or loss;
 – in respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal of the temporary 
differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future and taxable 
proﬁt will be available against which the temporary differences can be utilised; and 
 – deferred income tax assets are recognised only to the extent that it is probable that taxable proﬁt will be available against which the 
deductible temporary differences, carried forward tax credits or tax losses can be utilised. 36 KBC Advanced Technologies plc Annual Report 2011
FINANCIAL STATEMENTS
Notes to the ﬁnancial statements continued
1. Accounting policies continued
Current and deferred tax continued
Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the 
related asset is realised or liability is settled, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer 
probable that sufﬁcient taxable proﬁt will be available to allow all or part of the deferred income tax asset to be utilised.
Income tax is charged or credited directly to equity if it relates to items that are credited or charged to equity. Otherwise income tax 
is recognised in the income statement.
Property, plant and equipment
Property, plant and equipment assets are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost 
includes costs directly attributable to making the asset capable of operating as intended.
Depreciation is provided on all property, plant and equipment at rates calculated to write off the cost, less estimated residual value, 
of each asset over its expected useful life as follows:
Leasehold improvements   The lease term or useful life if shorter
Furniture, ﬁxtures and ﬁttings  Five years
Ofﬁce equipment    Five years
Computer hardware   Three years
Useful lives and residual values are assessed annually.
2. Critical accounting judgements and estimates
The preparation of the ﬁnancial statements requires the use of estimates and judgements that affect the reported amounts of assets 
and liabilities at the date of the ﬁnancial statements and the reported amounts of revenue and expenses during the year. These estimates 
are based on management’ s best knowledge of the amount, events or actions and actual results may ultimately differ from those estimates.
The estimates and judgements that have a signiﬁcant risk of causing a material adjustment to the carrying amounts of assets and liabilities 
are addressed below.
a) Impairment of goodwill
The Group carries out an annual impairment review or more frequently if events or changes in circumstances indicate that the carrying 
value may be impaired. An impairment loss is recognised when the recoverable amount of goodwill is less than the carrying amount. 
The impairment tests reﬂect the latest ﬁnancial budgets, which are based on various assumptions relating to the Group’s businesses 
including resource utilisation, foreign exchange rates, contract awards and contract margins.
b) Revenue recognition
Revenue on ﬁxed price service contracts is recognised using the percentage-of-completion method by measuring the proportion 
of costs incurred for work performed to total estimated costs. Use of this method requires the use of estimates in assessing the stage 
of completion reached.
c) Development costs
Development expenditure is capitalised when the Group considers its future recoverability can reasonably be regarded as assured 
and technical feasibility and commercial viability can be demonstrated. Any expenditure carried forward is amortised over the period 
of expected future sales from the related project. The carrying value of development costs is reviewed for impairment annually when 
the asset is not yet in use, or more frequently when an indicator of impairment arises during the reporting year indicating that the carrying 
value may not be recoverable. The technical and market uncertainties inherent in the development of new products mean that internal 
development costs will not be capitalised as intangible ﬁxed assets until commercial viability of a project is demonstrable and there 
is probable economic beneﬁt.
3. Revenue
Revenue arises from:
2011
£000
2010
£000
Provision of services 42,733 39,248
Sale of goods 12,992 13,813
55,725 53,061
4. Segment information
The Group has adopted IFRS 8 Operating segments, which uses a “management approach”, under which information is presented 
on the same basis as that used for internal reporting purposes. 
With regard to the balance sheet, those elements of the balance sheet where regional reporting is prepared have been disclosed. 
Those elements are trade receivables and provisions, amounts recoverable on contracts and deferred revenue. OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
37 KBC Advanced Technologies plc Annual Report 2011
4. Segment information continued
Transactions between the reportable segments are carried out at internally agreed rates and are reﬂected in the performance 
of each segment.
At the balance sheet date 7% of total trade receivables were concentrated with one of the Group’s customers (2010: 8%). The balance 
was spread over 132 (2010: 134) customers, none of whom comprised more than 6% (2010: 7%) of the total. An analysis of ageing of trade 
receivables and provisions is given in note 16.
Year ended 31 December 2011
Americas
£000
Asia
£000
EMEA
£000
Unallocated
£000
Total
£000
Provision of services (Consulting) 18,516 12,786 11,431 — 42,733
Sale of goods (Software) 3,879 4,695 4,418 — 12,992
Inter-segment revenue 1,134 246 671 — 2,051
Total revenue 23,529 17,727 16,520 — 57,776
Revenues carried out by other segments (1,134) (246) (671) — (2,051)
Revenue from external customers 22,395 17,481 15,849 — 55,725
Contribution 9,819 7,567 5,768 — 23,154
Operating proﬁt/(loss) before amortisation 4,534 3,348 688 (2,880) 5,690
Amortisation ——— (679) (679)
Operating proﬁt/(loss) 4,534 3,348 688 (3,559) 5,011
Finance revenue — — — 20 20
Finance cost ——— (101) (101)
Proﬁt/(loss) before tax 4,534 3,348 688 (3,640) 4,930
Tax expense ——— (1,673) (1,673)
Proﬁt/(loss) for the year 4,534 3,348 688 (5,313) 3,257
As at 31 December 2011
Americas
£000
Asia
£000
EMEA
£000
Unallocated
£000
Total
£000
Trade receivables 2,592 3,088 5,114 — 10,794
Provisions —— (1,767) — (1,767)
Net carrying amount 2,592 3,088 3,347 — 9,027
Amounts recoverable on contracts 2,311 4,560 5,491 — 12,362
Deferred revenue 2,197 1,176 1,243 — 4,616
Year ended 31 December 2010
Americas
£000
Asia
£000
EMEA
£000
Unallocated
£000
Total
£000
Provision of services (Consulting) 16,239 11,707 11,302 — 39,248
Sale of goods (Software) 4,473 5,186 4,154 — 13,813
Inter-segment revenue 1,574 228 1,011 — 2,813
Total revenue 22,286 17,121 16,467 — 55,874
Revenues carried out by other segments (1,574) (228) (1,011) — (2,813)
Revenue from external customers 20,712 16,893 15,456 — 53,061
Contribution 8,903 7,730 4,194 — 20,827
Operating proﬁt/(loss) before amortisation 3,833 3,911 (752) (2,611) 4,381
Amortisation ——— (605) (605)
Operating proﬁt/(loss) 3,833 3,911 (752) (3,216) 3,776
Finance revenue — — — 7 7
Finance cost ——— (135) (135)
Proﬁt/(loss) before tax 3,833 3,911 (752) (3,344) 3,648
Tax expense ——— (1,431) (1,431)
Proﬁt/(loss) for the year 3,833 3,911 (752) (4,775) 2,217
As at 31 December 2010
Americas
£000
Asia
£000
EMEA
£000
Unallocated
£000
Total
£000
Trade receivables 3,213 1,699 6,102 — 11,014
Provisions (232) — (1,689) — (1,921)
Net carrying amount 2,981 1,699 4,413 — 9,093
Amounts recoverable on contracts 2,385 3,912 6,174 — 12,471
Deferred revenue 2,932 1,362 1,340 — 5,634
Measure of underlying proﬁt is shown in note 5b. 38 KBC Advanced Technologies plc Annual Report 2011
FINANCIAL STATEMENTS
Notes to the ﬁnancial statements continued
4. Segment information continued
Revenue from 
external customers Non-current assets
2011
£000
2010
£000
2011
£000
2010
£000
United Kingdom 1,384 969 6,030 6,083
Mexico 10,722 2,994 — —
United States of America 8,246 9,434 3,835 3,936
India 3,543 1,421 — —
Malaysia 2,750 1,719 — —
South Korea 2,504 7,365 — —
China 2,294 3,645 — —
Canada 2,092 3,047 — —
Other 22,190 22,467 262 172
55,725 53,061 10,127 10,191
Revenues above are based on the location of the customer and non-current assets on the location of the assets. The countries listed 
represent those where the total revenue or assets are greater than 5% of the Group total.
5. Group operating proﬁt
This is stated after charging/(crediting) the following:
2011
£000
2010
£000
Depreciation and amortisation: 
Depreciation 490 568
Amortisation of intellectual property rights 
– existing intellectual property rights 119 247
– development costs carried forward 560 358
Total 1,169 1,173
Included in other operating charges: 
Operating lease rentals 
– minimum lease payments 2,566 2,438
– sublease rentals received (163) (233)
Share-based payments 300 275
Net foreign exchange differences (32) 415
a) Research and development costs
During 2011 the Group incurred research and development costs of £2.0m (2010: £2.4m). Of this amount £635,000 (2010: £1,068,000) related 
to development expenditure for Petro-SIM and has been carried forward as an intangible asset to be amortised against expected future sales. 
The balance was charged directly to staff and associate costs and direct costs in the income statement.
b) Underlying operating proﬁt
Year ended 31 December 2011
Americas
£000
Asia
£000
EMEA
£000
Unallocated
£000
Total
£000
Operating proﬁt/(loss) 4,534 3,348 688 (3,559) 5,011
Amortisation of acquisition intangibles — — — 119 119
Development costs carried forward (223) (185) (227) — (635)
Amortisation of development costs carried forward — — — 560 560
Exceptional bad debt provision — — 357 — 357
Arbitration costs ——— 557 557
Underlying operating proﬁt 4,311 3,163 818 (2,323) 5,969
Finance revenue — — — 20 20
Finance cost ——— (101) (101)
Underlying proﬁt before tax 4,311 3,163 818 (2,404) 5,888
Tax expense ——— (1,958) (1,958)
Underlying proﬁt after tax 4,311 3,163 818 (4,362) 3,930 OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
39 KBC Advanced Technologies plc Annual Report 2011
5. Group operating proﬁt continued
b) Underlying operating proﬁt continued
Year ended 31 December 2010
Americas
£000
Asia
£000
EMEA
£000
Unallocated
£000
Total
£000
Operating proﬁt/(loss) 3,833 3,911 (752) (3,216) 3,776
Amortisation of acquisition intangibles — — — 247 247
Development costs carried forward (344) (269) (455) — (1,068)
Amortisation of development costs carried forward — — — 358 358
Exceptional bad debt provision — — 1,478 — 1,478
Redundancy costs 103 17 105 — 225
Underlying operating proﬁt 3,592 3,659 376 (2,611) 5,016
Finance revenue — — — 7 7
Finance cost ——— (135) (135)
Underlying proﬁt before tax 3,592 3,659 376 (2,739) 4,888
Tax expense ——— (1,818) (1,818)
Underlying proﬁt after tax 3,592 3,659 376 (4,557) 3,070
6. Finance revenue/cost
2011
£000
2010
£000
Bank interest receivable 20 7
Bank interest payable 101 135
Included within other operating charges are the following:  
– gains on forward exchange contracts 37 55
7. Auditors’ remuneration
Current auditors
2011
£000
2010
£000
Audit of the ﬁnancial statements 13 12
Audit of subsidiary ﬁnancial statements 75 65
Remuneration for audit services 88 77
Other fees to auditors: 
– taxation services 207 106
– expatriate taxation services 113 102
– other services 3 105
411 390
8. Staff and associate costs
2011
£000
2010
£000
Staff costs (including Directors) comprise: 
– wages and salaries 21,736 21,076
– deﬁned contribution pension cost 1,574 1,568
– other long-term employee beneﬁts 1,837 1,871
– share-based payment expense 300 275
– social security contributions and similar taxes 1,832 1,687
27,279 26,477
Associate costs 3,543 3,062
30,822 29,539
2011
Number
2010
Number
Average monthly number of persons employed including Directors: 
– management 10 8
– technical and sales 228 232
– administration 59 52
297 292 40 KBC Advanced Technologies plc Annual Report 2011
FINANCIAL STATEMENTS
Notes to the ﬁnancial statements continued
8. Staff and associate costs continued
Key management personnel compensation
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities 
of the Group and comprise the Directors of the Company listed on page 16.
2011
£000
2010
£000
– salary 581 549
– other long-term beneﬁts 51 40
– fees 33 34
– total pension cost 31 31
– share-based payment expense 82 95
778 749
2011
Number
2010
Number
Number of Directors in deﬁned contribution pension schemes 2 2
George Bright exercised options during 2011 and realised a cash gain of £56,447 through sale of some of the shares acquired in order 
to fund the tax liability upon exercise of the options. 
Nicholas Stone exercised options during 2011 and realised a cash gain of £100,827 through sale of some of the shares acquired, in part 
to fund the tax liability upon exercise of the options. 
Mr Bright exercised options during 2010 and realised a cash gain of £26,986 through sale of some of the shares acquired in order to fund 
the tax liability upon exercise of the options. 
Mr Stone exercised options during 2010 and realised a cash gain of £24,250 through sale of some of the shares acquired in order 
to partially fund the tax liability upon exercise of the options. 
Full details of Directors’ emoluments are given in the Directors’ remuneration report on page 24.
9. Tax expense
a) Tax on proﬁt charged in the income statement
2011
£000
2010
£000
Current tax expense 
Income tax of overseas operations 774 2,133
Withholding taxes payable 651 461
Double tax relief (56) (158)
Adjustment for over provision in prior periods (3) (52)
1,366 2,384
Deferred tax expense 
Origination and reversal of temporary differences 94 (594)
Unrelieved tax losses carried forward against proﬁts of future years 37 (443)
Tax losses brought forward set against current proﬁts — 19
Asset amortisation temporary differences 176 65
307 (953)
Total tax expense 1,673 1,431
Of the total income tax expense, £0.6m (2010: £0.3m) relates to UK income tax and £1.1m (2010: £1.2m) relates to foreign taxes.
b) Reconciliation of the total tax charge
The tax assessed on the proﬁt for the year is higher than the standard rate of corporation tax in the UK of 26.5% (2010: 28%). OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
41 KBC Advanced Technologies plc Annual Report 2011
9. Tax expense continued
b) Reconciliation of the total tax charge continued
The differences are reconciled below:
2011
£000
2010
£000
Accounting proﬁt before tax 4,930 3,648
Taxation at UK statutory income tax rate of 26.5% (2010: 28%) 1,306 1,021
Expenses not deductible for tax purposes 184 490
Income not taxable for tax purposes (18) (102)
Change in statutory tax rate 141 70
Unrelieved tax losses carried forward against proﬁts of future years 68 —
Tax losses brought forward set against current proﬁts (34) —
Higher income tax on overseas earnings 140 204
Lower income tax on overseas earnings (283) (244)
Unrelieved foreign tax credits 1,025 302
Foreign tax costs deductible for tax purposes (125) (85)
Adjustment for over provision in prior periods (216) (109)
Other (515) (116)
Tax on proﬁt 1,673 1,431
c) Deferred tax
The movement on the deferred tax account is shown below:
2011
£000
2010
£000
At 1 January (1,896) (960)
Income statement charge/(credit) 307 (953)
Exchange differences 22 17
At 31 December (1,567) (1,896)
Deferred tax assets have been recognised in respect of all such tax losses and other temporary differences giving rise to deferred tax 
assets where the Directors believe it is probable that these assets will be recovered.
Recognised deferred tax assets/(liabilities)
Assets
£000
Liabilities
£000
Total
£000
At 31 December 2011 
Depreciation in advance of capital allowances 136 (273) (137)
Unrelieved tax losses carried forward against proﬁts of future years 1,423 — 1,423
Other temporary differences 1,205 (924) 281
2,764 (1,197) 1,567
Assets
£000
Liabilities
£000
Total
£000
At 31 December 2010 
Depreciation in advance of capital allowances 261 (221) 40
Unrelieved tax losses carried forward against proﬁts of future years 1,460 — 1,460
Other temporary differences 1,512 (1,116) 396
3,233 (1,337) 1,896
2011
£000
2010
£000
Unrecognised deferred tax assets: 
– unrelieved tax losses carried forward against proﬁts of future years 336 429
Of the unused tax losses, £0.1m (2010: £nil) can be carried forward indeﬁnitely and £0.2m (2010: £0.4m) expires within 20 years.
No deferred tax is recognised on the unremitted earnings of overseas subsidiaries as the Group is in a position to control the timing 
of the reversal of temporary differences and it is probable that such differences will not reverse in the foreseeable future. The temporary 
differences associated with the investments in subsidiaries for which a deferred tax liability has not been recognised aggregate to £10.8m 
(2010: £8.4m). If the earnings were remitted, tax of £0.2m (2010: £0.2m) would be payable. 
There are no income tax consequences attaching to the payment of dividends by the Group to its shareholders. 42 KBC Advanced Technologies plc Annual Report 2011
FINANCIAL STATEMENTS
Notes to the ﬁnancial statements continued
9. Tax expense continued
d) Tax on other comprehensive income
The amount included in the foreign exchange reserve represents other comprehensive income of £0.1m (2010: £0.9m) less tax 
of £nil (2010: £nil).
10. Earnings per share
Basic earnings per share are calculated by dividing after tax net proﬁt for the year attributable to Ordinary shareholders of the parent 
company by the weighted average number of Ordinary shares in issue during the year.
2011
£000
2010
£000
Proﬁt for the year 3,257 2,217
Number
000s
Number
000s
Weighted average number of Ordinary shares in issue 55,027 55,281
Number of shares used for basic and underlying earnings per share 55,027 55,281
Dilution 425 772
Number of shares used for diluted and diluted underlying earnings per share 55,452 56,053
Pence Pence
Basic earnings per share 5.9p 4.0p
Diluted earnings per share 5.9p 4.0p
Basic underlying earnings per share 7.1p 5.6p
Diluted underlying earnings per share 7.1p 5.5p
The former share option plan as detailed in the Directors’ remuneration report on page 22 refers to performance criteria related 
to EPS growth. The earnings ﬁgure used for this purpose is calculated based upon the deﬁnition established by the IIMR (Institute of 
Investment Management and Research) in its Statement of Investment Practice No.1. The calculation of basic IIMR EPS is based upon 
a proﬁt of £3.26m (2010: £2.22m) and on 55,027,000 (2010: 55,281,000) Ordinary shares, being the weighted average number of Ordinary 
shares in issue during the period after excluding the shares owned by the Employee Trust. 
The earnings per share based upon the basic and diluted IIMR EPS are 5.9p and 5.9p (2010: 4.0p and 4.0p).
Basic underlying earnings per share are based upon an after tax proﬁt as deﬁned in note 5b of £3.93m (2010: £3.07m) and on 55,027,000 
(2010: 55,281,000) Ordinary shares, being the weighted average number of Ordinary shares in issue during the period after excluding the 
shares owned by the Employee Trust. 
The LTIP 2006 as detailed in the Directors’ remuneration report on page 22 refers to performance criteria related to EPS growth. 
The basic earnings per share for underlying proﬁt as deﬁned above are used for this purpose.
The dilution referred to above is shown below: 
2011
Number
000s
2010
Number
000s
Total share options outstanding 4,053 4,435
Share options excluded (see below) (3,493) (3,455)
Potentially exercisable share options 560 980
Fair value shares (135) (208)
Dilution 425 772
Share options excluded are those where the exercise price is greater than the share price at 31 December 2011, those with performance 
conditions that have not yet been met and those to be settled by the Employee Trust. 
11. Dividends
2011
£000
2010
£000
Paid: 
Equity dividend paid per share for 2009 – 1.10p per share — 617
Equity dividend paid per share for 2010 – 0.55p per share — 299
Equity dividend paid per share for 2010 – 1.30p per share 714 —
Equity dividend paid per share for 2011 – 0.70p per share 386 —
1,100 916
Proposed: 
Equity dividend proposed per share for 2011 – 1.55p per share (2010: 1.30p) 857 708 OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
43 KBC Advanced Technologies plc Annual Report 2011
12. Property, plant and equipment
Leasehold
improvements
£000
Fixtures, 
ﬁttings
and ofﬁce
equipment
£000
Computer
hardware
£000
Total
£000
Cost: 
At 1 January 2010 1,660 901 1,462 4,023
Additions 721 241 269
Disposals (175) (182) (385) (742)
Foreign exchange rate movements — 44 53 97
At 31 December 2010 1,492 784 1,371 3,647
Additions 38 26 379 443
Disposals (128) — (217) (345)
Foreign exchange rate movements — 2 11 13
At 31 December 2011 1,402 812 1,544 3,758
Accumulated depreciation: 
At 1 January 2010 944 508 987 2,439
Depreciation charge for the year 129 124 315 568
Disposals (175) (179) (360) (714)
Foreign exchange rate movements — 19 36 55
At 31 December 2010 898 472 978 2,348
Depreciation charge for the year 84 113 293 490
Disposals (128) — (216) (344)
Foreign exchange rate movements — 2 7 9
At 31 December 2011 854 587 1,062 2,503
Net book value at 31 December 2011 548 225 482 1,255
Net book value at 31 December 2010 594 312 393 1,299
Net book value at 1 January 2010 716 393 475 1,584
13. Intangible assets
Goodwill
£000
Intellectual
property
£000
Development
costs
£000
Other
intangibles
£000
Total
£000
Cost: 
At 1 January 2010 7,372 1,835 1,278 897 11,382
Additions — — 1,068 — 1,068
Foreign exchange rate movements 107 — — 29 136
At 31 December 2010 7,479 1,835 2,346 926 12,586
Additions — — 635 — 635
Foreign exchange rate movements 26 — — 7 33
At 31 December 2011 7,505 1,835 2,981 933 13,254
Accumulated amortisation: 
At 1 January 2010 — 1,656 759 656 3,071
Amortisation charge for the year — 57 358 190 605
Foreign exchange rate movements — — — 18 18
At 31 December 2010 — 1,713 1,117 864 3,694
Amortisation charge for the year — 59 560 60 679
Foreign exchange rate movements — — — 9 9
At 31 December 2011 — 1,772 1,677 933 4,382
Net book value at 31 December 2011 7,505 63 1,304 — 8,872
Net book value at 31 December 2010 7,479 122 1,229 62 8,892
Net book value at 1 January 2010 7,372 179 519 241 8,311
As of 1 January 2005 goodwill is no longer amortised and is tested annually for impairment (see note 14).
The remaining useful life of the unamortised intellectual property is one year (2010: two years). 44 KBC Advanced Technologies plc Annual Report 2011
FINANCIAL STATEMENTS
Notes to the ﬁnancial statements continued
14. Goodwill and impairment
The acquired goodwill arose from two acquisitions made in 2002, Linnhoff March and Petroleum Economics, and two acquisitions made 
in 2007, TTS Performance Systems and Veritech. Each business acquired constitutes a single cash-generating unit. These are considered 
by management to have the same risks associated with them as they undertake similar activities for similar clients in the industry. The net 
carrying amount of the goodwill at 31 December 2011 of £7,505,000 (2010: £7,479,000) can be analysed between the acquisitions as follows:
2011
£000
2010
£000
Linnhoff March 2,450 2,450
Petroleum Economics 1,502 1,502
TTS Performance Systems 2,797 2,776
Veritech 756 751
Total 7,505 7,479
The Group tests annually for impairment of goodwill or more frequently if there are indications that it might be impaired. In each case, 
the net carrying amount was measured against the recoverable amount, determined with reference to value-in-use expected to be 
generated over ﬁve years by each of these units. To estimate this, the Group prepares cash ﬂow forecasts based upon the most recent 
ﬁnancial budgets approved by management and extrapolates cash ﬂows with the conservative assumption of no future revenue growth 
and constant contribution from each unit. Financial budgets are based on historical performance of the Group. The Group has used 
10% as its discount rate when assessing acquisition opportunities and has therefore used this rate as the core calculation with sensitivities 
at lower and higher rates, consistent with the prior year. Alternative discount rates were considered and did not have a material impact 
on the value. The value-in-use was in each case higher than the net carrying value and therefore the conclusion was reached that no 
impairment has taken place.
Goodwill in TTS Performance Systems and Veritech is denominated in US dollars which, given the variations in the US dollar exchange 
rate during 2011, explains the increase in net carrying amount shown above.
15. Subsidiaries
The principal subsidiaries of KBC Advanced Technologies plc, all of which have been included in these consolidated ﬁnancial statements, 
are as follows:
Proportion of ownership 
interest at 31 December
Name Country of incorporation 2011 2010
KBC Process Technology Limited England 100% 100%
KBC Advanced Technologies, Inc. USA 100% 100%
KBC Advanced Technologies Pte Limited Singapore 100% 100%
KBC Advanced Technologies Canada Limited Canada 100% 100%
KBC Advanced Technologies (Beijing) Limited China 100% 100%
KBC Environmental Limited England 75% 75%
KBC Advanced Technologies plc is the ultimate parent of the Group.
16. Trade and other receivables
2011
£000
2010
£000
Trade receivables: 
– not yet due 6,742 6,909
– past due, zero to six months 2,115 2,182
– past due, beyond six months 1,937 1,923
10,794 11,014
– provision for impairment of trade receivables (see below) (1,767) (1,921)
– net carrying amount 9,027 9,093
Prepayments 1,471 1,655
Amounts recoverable on contracts 12,362 12,471
22,860 23,219
Amounts recoverable on contracts represent the revenue earned on client contracts not yet invoiced.
The main factors used in assessing the impairment of trade receivables are the age of the balance and the circumstances of the 
individual customer. For those trade receivables past due and beyond six months where no provision has been made, there are 
no issues relating to their recoverability. OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
45 KBC Advanced Technologies plc Annual Report 2011
16. Trade and other receivables continued
Movements on the Group provision for impairment of trade receivables are as follows: 
2011
£000
2010
£000
At 1 January 1,921 711
Provided during the year 282 1,392
Receivables written off during the year as uncollectible (436) —
Exchange differences — (182)
At 31 December 1,767 1,921
17. Cash and cash equivalents
2011
£000
2010
£000
Cash at bank and in hand 2,688 1,686
Short-term deposits 3,127 2,820
5,815 4,506
Fair value of cash and cash equivalents 5,815 4,506
Cash at bank earns interest at ﬂoating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between 
one day and three months depending upon the cash requirements of the Group and earn interest at the prevailing short-term deposit rates.
Included in short-term deposits are cash deposits securing performance guarantees (see note 27a).
At 31 December 2011 the Group had undrawn committed facilities of £10,510,000 (2010: £7,637,000) which expire between March 2012 
and July 2012.
2011
£000
2010
£000
Movement in working capital: 
– trade and other receivables 359 (2,233)
– trade and other payables (1,008) 2,122
– exchange differences (56) 698
– ﬁnancial assets and liabilities (61) 55
(766) 642
18. Other ﬁnancial assets
2011
£000
2010
£000
Forward currency contracts (held for trading) 54 —
During the year a gain of £37,000 (2010: £55,000) was made on forward currency contracts upon crystallisation of those contracts.
Financial assets are valued using market prices at the year end date.
19. Trade and other payables
2011
£000
2010
£000
Trade payables 918 1,171
Other taxes and social security costs 488 34
Other payables and accruals 1,828 2,019
Deferred revenue 4,616 5,634
7,850 8,858
Trade payables are generally non-interest bearing and are normally settled within a 45-day period. Other taxes and social security costs 
payable are non-interest bearing and are remitted to the appropriate taxation authorities on a monthly or quarterly basis.
20. Other ﬁnancial liabilities (current)
2011
£000
2010
£000
Forward currency contracts (held for trading) — 7
During the year a gain of £37,000 (2010: £55,000) was made on forward currency contracts upon crystallisation of those contracts.
Financial assets are valued using market prices at the year end date. 46 KBC Advanced Technologies plc Annual Report 2011
FINANCIAL STATEMENTS
Notes to the ﬁnancial statements continued
21. Obligations under leases 
The Group has entered into commercial leases on properties and items of ofﬁce equipment. The average lease term is six years 
(2010: ﬁve years).
Land and
buildings
2011
£000
Other
2011
£000
Land and
buildings
2010
£000
Other
2010
£000
Future minimum rentals payable under non-cancellable operating leases: 
– within one year 2,202 189 2,066 211
– after one year but not more than ﬁve years 5,730 102 5,970 121
– after ﬁve years 2,468 — 3,641 —
10,400 291 11,677 332
Certain Group companies have sublet ofﬁce space within properties. The future minimum sublease payments expected to be received 
under non-cancellable sublease agreements as at 31 December 2011 total £505,000 (2010: £359,000).
The maturity of future minimum sublease payments expected is set out below:
2011
£000
2010
£000
In one year or less 227 170
In more than one year, but not more than two 278 189
505 359
22. Financial instruments – risk management
The Group’s principal ﬁnancial instruments are trade receivables, trade payables, cash and cash equivalents. The main purpose of these 
ﬁnancial instruments is to ﬁnance the Group’s ongoing operational requirements. The Group also enters into forward currency contracts 
to manage currency risks arising from its operations and sources of ﬁnance.
The Directors are responsible for considering all areas of risk that may affect the operations of the Group and for setting policies 
designed to minimise the impact the ﬁnancial risk may have on the business.
The major ﬁnancial risks faced by the Group are interest rate risk and foreign currency risk. The Group does not consider that it has any 
signiﬁcant credit risk with most of its customers due to their proﬁle. However, the current economic environment is giving reason to carry 
out more regular reviews of the ﬁnancial strength of some of our customers and the imposition of tighter payment terms where appropriate.
The Group does not trade in ﬁnancial instruments.
Further discussion of ﬁnancial risk management is given in the Business review on page 15.
Policies for the management of these risks are shown below.
a) Interest rate risk
Cash balances in excess of immediate needs are placed on short-term deposits in the money markets or managed by a third-party fund 
manager. Externally managed funds are invested in deposits with, or certiﬁcates of deposits issued by, approved banks or building societies. 
No investment exceeds one year’s maturity. The Group’s present policy is to place not more than £1m for maturity in excess of six months.
The use of the Group’ s facilities is kept to a minimum (note 17) and repayments are made as soon as is practically possible. Interest charged 
on use of facilities is based on bank base rates and is negotiated annually.
During the year the Group managed the interest rate risk relating to the Group’s facilities by converting some of the facility into 
a revolving credit facility.
The effect of a 10% movement in the interest rate compared to 2010 would impact ﬁnance charges in the income statement by £6,000 
(2010: £3,000) should the proﬁle of use of facilities be similar to 2011.
b) Foreign currency risk
The majority of transactions continue to be in US dollars, sterling and an increasing number of euro-denominated contracts. Where 
a revenue currency differs from that in which costs are incurred, a proportion of the foreign exchange exposure is offset using forward 
exchange contracts in the currency markets. Forward contracts are put in place on the following basis:
Within three months  – 75% of forecast exposure
Within three to six months  – 60% of forecast exposure
Within six to nine months  – 50% of forecast exposure
The Group has a number of overseas subsidiaries and branches whose revenues and costs are denominated in currencies other than sterling, 
the most signiﬁcant of which are in the US.  OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
47 KBC Advanced Technologies plc Annual Report 2011
22. Financial instruments – risk management continued
b) Foreign currency risk continued
The effect of movements in the major currencies in which the Group’s operations are carried out and that are different to the operating 
unit’s functional currency based on balances at the balance sheet date, are as follows:
Currency Movement
Trade 
receivables
2011
£000
Trade 
payables
2011
£000
Financial 
assets and 
liabilities
2011
£000
Trade 
receivables
2010
£000
Trade 
payables
2010
£000
Financial 
assets and 
liabilities
2010
£000
US dollar 10c 244 18 n/a 347 20 153
Euro 10c 203 n/a 161 249 n/a 101
Within trade and other receivables is £2,639,000 denominated in euros (2010: £2,743,000), £1,450,000 denominated in US dollars 
(2010: £2,254,000), £109,000 denominated in Qatari riyals (2010: £53,000), £44,000 denominated in Japanese yen (2010: £15,000) 
and £nil denominated in Malaysian ringgit (2010: £10,000) that are not in the functional currency of the operating unit involved.
At 31 December 2011 forward exchange contracts were in place as follows:
Value
000
Value
£000 Maturity
Exchange
rate
Fair value
adjustment
£000
At 31 December 2011 
Sell euros €2,500 2,142 24 January 2012 – 5 September 2012 1.1536 – 1.1732 54
At 31 December 2010 
Sell US dollars $4,000 2,555 1 February 2011 – 1 August 2011 1.5580 – 1.5583 12
Sell euros €1,500 1,285 7 April 2011 – 2 August 2011 1.1847 – 1.1848 (19)
c) Credit risk
The Group’s principal ﬁnancial assets are trade receivables, bank balances and cash. The main credit risk faced is attributable to the 
trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables which are made where 
there are circumstances which based on experience are evidence of a likely reduction in the recoverability of the receivable. 
As the majority of the Group’s customers are state-owned or very large oil companies, the risk of non-payment tends to be less of the 
traditional credit nature and more related to customer satisfaction. The minority of customers who are not state-owned or very large oil 
companies are generally non-asset owners and potential investors. For this minority of customers the credit risk is assessed using a number 
of methods and payment terms are tightened as appropriate. 
The Group does not prepare any formal analysis of the credit rating of its customers.
At the balance sheet date 7% of total trade receivables were concentrated with one of the Group’s customers (2010: 8%). The balance 
was spread over 132 (2010: 134) customers, none of whom comprised more than 6% (2010: 7%) of the total. An analysis of ageing of trade 
receivables and provisions is given in note 16.
d) Liquidity risk
Customer payment terms vary from contract to contract and can involve extended periods of time before invoices are raised. 
The liquidity risk is managed through use of the overdraft facilities described in note 17.
Regular cash ﬂow forecasts are prepared for the Board and the Executive Committee which, together with information on cash balances, 
allow the Group to ensure that it will have sufﬁcient cash to meet its liabilities when they become due and thus mitigate liquidity risk.
The treasury function for the Group is managed centrally.
The maturity of trade and other payables is set out below:
2011
£000
2010
£000
Current 
In six months or less 2,667 2,838
In more than six months, but not more than twelve 79 275
2,746 3,113
Categories of ﬁnancial assets and liabilities
Held for trading Loans and receivables
2011
£000
2010
£000
2011
£000
2010
£000
Financial assets 
Cash and bank — — 5,815 4,506
Trade and other receivables (current) — — 9,027 9,093
Forward currency contracts 54 — — —
54 — 14,842 13,599 48 KBC Advanced Technologies plc Annual Report 2011
22. Financial instruments – risk management continued
d) Liquidity risk continued
Categories of ﬁnancial assets and liabilities continued
Held for trading
Measured at 
amortised cost
2011
£000
2010
£000
2011
£000
2010
£000
Financial liabilities 
Trade and other payables (current) — — 2,746 3,190
Forward currency contracts — 7 — —
— 7 2,746 3,190
Within
one year
£000
Total
£000
Interest rate risk 
At 31 December 2011 
Floating rate: 
– cash and bank 5,815 5,815
At 31 December 2010 
Floating rate:  
– cash and bank 4,506 4,506
e) Fair values
The forward contracts are carried at fair value, according to level 2 of the fair value hierarchy requirements of IFRS 7 and based on the 
year-end exchange rates.
The Directors believe that as they are short-term, the fair values for all items equate to their book value, other than forward currency 
contracts which are stated at market value by reference to exchange rates veriﬁed by third parties.
f) Capital
The Group considers its capital to comprise its Ordinary share capital, share premium and accumulated retained earnings. Changes to equity 
during the year are detailed in the Group Statement of Changes in Equity on page 30.
The Group’s objective when managing capital is to ensure that funds are raised in an appropriate, cost-effective manner. The Group’s 
primary concern is to maintain its ability to continue as a going concern in order to provide returns for shareholders and stakeholders 
in the Company. It is the Board’s intention to pay dividends in the future commensurate with the Group’s overall proﬁtability thereby 
reducing dividend cover.
23. Share capital
2011
Number
2010
Number
2011
£000
2010
£000
Issued and fully paid 
Ordinary shares of 2.5p each: 
– at 1 January 55,430,674 57,172,217 1,386 1,429
– issued during year on exercise of share options 589,060 582,657 14 15
– cancelled on repurchase — (2,324,200) — (58)
At 31 December 56,019,734 55,430,674 1,400 1,386
24. Share-based payments
Former share option plan
Options have been granted to Executive Directors and all other employees at prices not less than the market price of the shares on the 
date of grant. The options are exercisable between three and 10 years from the award date, subject to EPS-related performance conditions. 
Further details of the performance conditions and vesting periods may be found in the Directors’ remuneration report on pages 21 to 24. 
No options have been granted under the Executive Scheme since 2003 and the scheme expired in 2007. 
Long Term Incentive Plan
The Long Term Incentive Plan (the “LTIP”) provided for the award of rights to acquire shares at nil cost or, in the case of new issue shares, 
at not less than par value, subject to various conditions. The proportion of those shares which will vest is related to the performance of the 
Group over a three-year period.
The LTIP expired in 2005. For awards which remain outstanding, vesting is determined by the performance conditions that compare the 
growth in the Group’s IIMR EPS (as deﬁned in note 10) over a three-year period to the percentage change in the Retail Prices Index (“RPI”) 
over the same period. No shares will be earned if the Group’s IIMR EPS growth is less than 15% plus RPI. 50% of the shares will be earned 
if the Group’s IIMR EPS growth is 15% plus RPI and 100% of the shares will be earned if the Group’s IIMR EPS growth is 30% plus RPI. 
A proportionate number of shares will be earned for performance between 15% plus RPI and 30% plus RPI.
When determining the extent to which the LTIP’s IIMR EPS-based performance conditions are satisﬁed under the Group’s share 
incentive arrangements, the Remuneration Committee seeks external advice where necessary.
FINANCIAL STATEMENTS
Notes to the ﬁnancial statements continued OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
49 KBC Advanced Technologies plc Annual Report 2011
24. Share-based payments continued
Long Term Incentive Plan 2006
Executive Directors and other staff have been granted rights to acquire shares at nil cost under this plan introduced in 2006. 
Vesting is subject to performance criteria related to the Group’ s EPS growth over a three-year period. Failure to meet the performance 
criteria causes the awards to lapse. Further details of the performance conditions may be found in the Directors’ Remuneration Report 
on pages 21 to 24.
The expense recognised for equity-settled share-based payments in respect of employee services received during the year ended 
31 December 2011 is £300,000 (2010: £275,000). 
The following table illustrates the number and weighted average exercise prices (“WAEP”) of, and movements in, share options 
during the year:
2011
Number
2011
WAEP
2010
Number
2010
WAEP
Outstanding at 1 January 4,434,964 19.3p 4,849,333 22.9p
Granted during the year 1,173,063 — 703,468 —
Exercised during the year (1,060,877) 1.1p (629,048) 2.1p
Lapsed during the year (494,569) 94.9p (488,789) 49.5p
Outstanding at 31 December 4,052,581 9.3p 4,434,964 19.3p
Exercisable at 31 December 624,825 15.3p 532,295 19.4p
For the share options outstanding at 31 December 2011 the weighted average remaining contractual life is 3.18 years (2010: 3.36 years). 
The options outstanding at 31 December 2011 can be analysed as follows:
2011
Number
2010
Number
Options over new shares 600,207 1,018,007
Options over ESOP shares 1,295,728 1,853,716
Other options
(1)
2,156,646 1,563,241
Total options outstanding 4,052,581 4,434,964
(1) At 31 December 2011 the Board had not decided whether these options would be satisﬁed by the issue of new shares or shares bought in the market.
The weighted average fair value of options granted during the year was £1,250,000 (2010: £339,000). The range of exercise prices for options 
outstanding at the end of the year was nil–110.0p (2010: nil–146.5p).
The fair value of equity-settled share options granted under the former share option plan and the LTIP is estimated as at the date of grant 
using a Black Scholes model, taking into account the terms and conditions upon which the options were granted. The following table 
lists the inputs to the model used for the years ended 31 December 2011 and 31 December 2010:
Date
8 March
2005
29 April
2004
17 September
2004
Dividend yield (%) 0.5% 13.4% 8.7%
Expected share price volatility (%) 57.9% 58.3% 57.6%
Risk-free interest rate (%) 4.8% 4.8% 4.8%
Expected life of option (years) 3.0 3.0 3.0
Share price at date of grant (pence) 38.5p 30.5p 34.5p
Exercise price (pence) 2.5p 2.5p 2.5p
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. 
The expected volatility reﬂects the assumption that the historical volatility is indicative of future trends, which may also not necessarily 
be the actual outcome.
For options granted under the LTIP 2006 between 2007 and 2011, the market value on the date of grant has been determined to be the 
fair value of the options. These options carry a right to accrued dividends during their lifetime, have nil cost to the recipient and are not 
subject to market conditions. In these circumstances the Black Scholes model will calculate a value equal to 100% of the market value.
No other features of option grants were incorporated into the measurement of fair value.
25. Reserves
The following describes the nature and purpose of each reserve within equity:
Share capital
The balance classiﬁed as share capital comprises the nominal value received on issue of the Company’s equity share capital, comprising 
2.5p Ordinary shares.
Share premium
The balance classiﬁed as share premium comprises the premium received on issue of the Company’s equity share capital, less expenses 
relating to the cost of the issue of shares, included in “retained earnings” on the face of the balance sheet.
Other reserves
Capital redemption reserve
The balance classiﬁed as capital redemption reserve comprises an historic statutory reserve arising on the redemption of shares and is 
included in “other reserves” on the face of the balance sheet. 50 KBC Advanced Technologies plc Annual Report 2011
25. Reserves continued
Other reserves continued
Merger reserve
The balance classiﬁed as merger reserve results from the Company having secured merger relief under Section 131 of the Companies 
Act 1985, when in previous periods subsidiaries were acquired through the issue of the Company’s own equity shares.
Own shares
Own shares comprise 743,598 (2010: 990,415) 2.5p Ordinary shares in the Company acquired at a weighted average cost of £0.25 each 
held by the Employee Trust. The market value of these shares at 31 December 2011 was £509,000 (2010: £589,000). Options over these 
shares have been granted to employees, exercisable at prices ranging from £nil to £0.025 per share. The 743,598 (2010: 990,415) shares 
over which options remain exercisable relate to three-year options which may not be exercised unless the performance criteria are met. 
These criteria are set out in note 24.
Dividends on the shares owned by the Employee Trust, the purchase of which was funded by interest-free loans to the Trust from 
KBC Advanced Technologies plc, are waived. All expenses incurred by the Trust are settled directly by KBC Advanced Technologies plc 
and are charged in the ﬁnancial statements as incurred.
Retained earnings
Share-based payments
The balance classiﬁed as share-based payments comprises the accumulated IFRS 2 fair value charge.
Foreign exchange reserve
The foreign exchange reserve is used to record exchange differences arising from the translation of the ﬁnancial statements 
of foreign subsidiaries.
26. Capital commitments 
At 31 December 2011 the Group had capital commitments of £64,000 (2010: £nil).
27. Contingent liabilities
a) Performance guarantees
Bank-backed performance guarantees given to third parties as at 31 December 2011 in respect of Group companies are detailed below:
At 31 December 2011
Tender
bonds
£000s
Advance
payment and
performance
 guarantees
£000s
Total
£000s
Cash cover
£000s
UK 31 219 250 5
US — 3,031 3,031 197
Singapore —6666 66
China —9292 92
Total 31 3,408 3,439 360
The Directors consider that given the history of non-drawing on any guarantee that these guarantees will not be called upon in the future.
For those guarantees which are secured by cash, the use of the cash is restricted by the terms of the guarantees.
At 31 December 2010
Tender
bonds
£000s
Advance
payment and
performance
guarantees
£000s
Total
£000s
Cash cover
£000s
UK 170 1,076 1,246 5
US —2,773 2,773 —
Singapore —204 204 204
China —285 285 285
Total 170 4,338 4,508 494
b) Bank cross guarantee 
The Group’ s bankers hold a cross guarantee and debenture over all assets of KBC Advanced T echnologies plc, KBC Process T echnology Limited 
and Linnhoff March Limited. This is in place as security for the overdraft, guarantee and forward exchange facility.
The amount of the overdraft drawn at 31 December 2011 was £nil (2010: £nil).
FINANCIAL STATEMENTS
Notes to the ﬁnancial statements continued OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
51 KBC Advanced Technologies plc Annual Report 2011
28. Pensions
The Group contributes to deﬁned contribution pension schemes for its Directors and employees. The assets of the schemes are held 
separately from those of the Group in independently administered funds.
2011
£000
2010
£000
Amount recognised as an expense 1,574 1,568
29. Other related party transactions
Other than compensation of key management personnel disclosed below there are no transactions with other related parties.
Fees for the services as a Director of Oliver Scott were paid to Kestrel Partners LLP .
In 2011, Michael Kirk was paid a fee of £nil (2010: £26,000) for work outside of his role as a Non-Executive Director.
There were no other transactions with Directors of the Company.
2011
£000
2010
£000
Compensation of key management personnel of the Group (deﬁned as the Board of Directors): 
Short-term employee beneﬁts 665 623
Post-employment beneﬁts 31 31
Share-based payments 82 95
Total 778 749 52 KBC Advanced Technologies plc Annual Report 2011
Note
2011
£000
2010
£000
Fixed assets  
Intangible assets 35 1,367 1,351
Investments 36 15,767 15,467
Deferred tax asset 195 180
17,329 16,998
Current assets 
Debtors 37 10,155 8,772
Cash and cash equivalents 839 1,144
10,994 9,916
Creditors: amounts falling due within one year 38 (557) (204)
Net current assets 10,437 9,712
Total assets less current liabilities 27,766 26,710
Capital and reserves 
Called up share capital 39 1,400 1,386
Share premium account 40 8,081 8,072
Capital redemption account 40 113 113
Merger reserve 40 929 929
Reserve for own shares 40 (175) (245)
Proﬁt and loss account 17,418 16,455
Shareholders’ funds 27,766 26,710
The ﬁnancial statements on pages 52 to 56 were approved and authorised for issue by the Board of Directors on 13 March 2012 
and were signed on its behalf by:
George Bright  Nicholas Stone
Director  Director
FINANCIAL STATEMENTS
Company balance sheet
As at 31 December 2011 OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
53 KBC Advanced Technologies plc Annual Report 2011
30. Authorisation of ﬁnancial statements and statement of compliance with UK GAAP
The ﬁnancial statements of KBC Advanced Technologies plc for the year ended 31 December 2011 were authorised for issue by the 
Board of Directors on 13 March 2012 and the balance sheets were signed on the Board’s behalf by George Bright and Nicholas Stone. 
KBC Advanced Technologies plc is a public limited company incorporated and domiciled in England and Wales. The Company’s Ordinary 
shares are traded on AIM, part of the London Stock Exchange.
The Company ﬁnancial statements are separate ﬁnancial statements and have been prepared in accordance with UK GAAP and as 
applied in accordance with the provisions of the Companies Act 2006. The principal accounting policies adopted by the Company 
are set out in note 31.
31. Accounting policies
Basis of preparation
The ﬁnancial statements have been prepared under the historical cost convention as modiﬁed for certain items which have been measured 
at fair value, namely ﬁnancial instruments, and in accordance with UK applicable accounting standards.
No proﬁt and loss account is presented for KBC Advanced Technologies plc, as permitted by Section 408 of the Companies Act 2006.
The adoption of FRS 29 did not have an impact on the Company ﬁnancial statements due to the exemption provided in paragraph 2D 
of FRS 29, which states that disclosure of ﬁnancial instruments is not required in parent company ﬁnancial statements.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where 
transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more, 
tax with the following exceptions:
–  provision is made for tax on gains arising from gains on disposal of ﬁxed assets that have been rolled over into replacement assets, 
only to the extent that at the balance sheet date there is a binding agreement to dispose of the assets concerned. However, no provision 
is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be 
rolled over into replacement assets and charged to tax only if the replacement assets are sold;
–  provision is made for deferred tax that would arise on remittance of the retained earnings of overseas subsidiaries only to the extent 
that at the balance sheet date dividends have been accrued as receivable; and
–  deferred tax assets are recognised only to the extent that the Directors consider that it is more likely than not that there will be suitable 
taxable proﬁts from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences 
reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer 
probable that sufﬁcient taxable proﬁt will be available to allow all or part of the deferred income tax asset to be utilised.
Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities 
denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are 
taken to the proﬁt and loss account.
Research and development
Research costs are expensed as incurred. Development expenditure incurred on an individual project is carried forward when its future 
recoverability can reasonably be regarded as assured and technical feasibility and commercial viability can be demonstrated. Where these 
criteria are not met the expenditure is expensed to the income statement.
Following the initial recognition of development expenditure, the cost model is applied requiring the asset to be carried at cost less 
any accumulated amortisation and accumulated impairment losses. Any expenditure carried forward is amortised over the period of 
expected future sales from the related project. The carrying value of development costs is reviewed for impairment annually when the 
asset is not yet in use or more frequently when an indicator of impairment arises during the reporting year indicating that the carrying 
value may not be recoverable.
The technical and market uncertainties inherent in the development of new products mean that internal development costs will not be 
capitalised as intangible ﬁxed assets until commercial viability of a project is demonstrable and there is probable economic beneﬁt. 
Expenditure on product maintenance and support is expensed as incurred.
Financial assets
Financial assets within the scope of FRS 26 are classiﬁed as ﬁnancial assets at fair value through proﬁt or loss or loans and receivables, 
as appropriate. The Company determines the classiﬁcation of its ﬁnancial assets at initial recognition. When ﬁnancial assets are initially 
recognised they are measured at fair value, being the transaction price plus, in the case of ﬁnancial assets not at fair value through proﬁt 
or loss, directly attributable transaction costs. 
All regular way purchases and sales of ﬁnancial assets are recognised on the trade date, being the date that the Company commits to 
purchase or sell the asset. Regular way transactions require delivery of assets within the timeframe generally established by regulation 
or convention in the market place. The subsequent measurement of ﬁnancial assets depends on their classiﬁcation, as shown overleaf.
FINANCIAL STATEMENTS
Notes to the Company ﬁnancial statements 54 KBC Advanced Technologies plc Annual Report 2011
31. Accounting policies continued
Financial assets at fair value through proﬁt or loss
Financial assets classiﬁed as held for trading and other assets designated as such on inception are included in this category. Financial assets 
are classiﬁed as held for trading if they are acquired for sale in the short term. Derivatives are also classiﬁed as held for trading unless 
they are designated as hedging instruments. Assets are carried in the balance sheet at fair value while gains or losses on ﬁnancial assets 
at fair value through proﬁt or loss are recognised in the income statement.
Where there is no active market, fair value is determined using discounted cash ﬂow and pricing models. Otherwise assets are carried at cost.
Receivables
Receivables are non-derivative ﬁnancial assets with ﬁxed or determinable payments that are not quoted in an active market, do not 
qualify as trading assets and have not been designated as either fair value through proﬁt and loss or available for sale. Such assets 
are carried at amortised cost.
Related party transactions
The Company has taken advantage of the exemption granted by FRS 8 from disclosing related party transactions with entities that are 
wholly owned by KBC Advanced Technologies plc.
Investments
Investments in subsidiaries are recorded at cost less provision for impairment.
Intangible assets
Intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss. 
Amortisation is provided on all intangibles at rates calculated to write off the cost of each asset over its expected useful life for a period 
of up to 10 years as follows:
Intellectual property   Six years
Capitalised development expenditure  To be written off by the end of 2015
Other intangibles    Five years
Own shares
Own shares are recorded at cost. Options over some of these shares have been granted to employees of Group subsidiaries.
32. Proﬁt attributable to members of the parent company
The proﬁt dealt with in the ﬁnancial statements of the parent company was £2,008,000 (2010: £2,601,000).
33. Auditors’ remuneration
2011
£000
2010
£000
Audit of the Company ﬁnancial statements 13 12
34. Directors’ emoluments
Full details of Directors’ emoluments are given in the Directors’ Remuneration Report on page 24.
The parent company has no employees excluding Directors (2010: nil).
35. Intangible ﬁxed assets
Intellectual
 property
 rights
£000
Development
£000
Total
£000
Cost 
At 1 January 2011 1,835 2,346 4,181
Additions —635 635
At 31 December 2011 1,835 2,981 4,816
Accumulated amortisation 
At 1 January 2011 1,713 1,117 2,830
Amortisation charge for the year 59 560 619
At 31 December 2011 1,772 1,677 3,449
Net book value at 31 December 2011 63 1,304 1,367
Net book value at 31 December 2010 122 1,229 1,351
FINANCIAL STATEMENTS
Notes to the Company ﬁnancial statements continued OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
55 KBC Advanced Technologies plc Annual Report 2011
36. Investments
2011
£000
2010
£000
Subsidiary undertakings: 
Cost and net book value at 1 January 15,467 15,192
Capital contribution 300 275
At 31 December 15,767 15,467
In line with UITF 44 an investment of £300,000 (2010: £275,000) has been recognised in relation to the capital contribution made by the 
Company to its subsidiaries.
The Company holds equity in the following principal subsidiary undertakings:
Name of subsidiary
Country of
registration
(or incorporation)
and operation
Proportion of voting rights 
and equity interest 
2011 2010
KBC Process Technology Limited England 100% 100%
KBC Advanced Technologies, Inc. USA 100% 100%
KBC Advanced Technologies Pte Limited Singapore 100% 100%
KBC Environmental Limited England 75% 75%
The nature of business of these subsidiaries is consulting and software services to the oil industry and other process industries.
37. Debtors
2011
£000
2010
£000
Amounts owed by subsidiary undertakings 9,995 8,432
Current tax receivable — 220
Other debtors and prepayments 160 120
10,155 8,772
Amounts owed by subsidiary undertakings are not considered to be impaired and are recoverable within six months. There has been no 
history of default by any subsidiary undertaking.
38. Creditors
2011
£000
2010
£000
Trade creditors 33 95
Amounts owed to subsidiary undertakings 464 40
Other creditors and accruals 60 69
557 204
39. Share capital
2011
Number
2010
Number
2011
£000
2010
£000
Issued and fully paid 
Ordinary shares of 2.5p each: 
– at 1 January 55,430,674 57,172,217 1,386 1,429
– issued during the year on exercise of share options 589,060 582,657 14 15
– cancelled on repurchase — (2,324,200) — (58)
At 31 December 56,019,734 55,430,674 1,400 1,386
Options to subscribe for new Ordinary shares of 2.5p each, including LTIP awards and those noted in the Directors’ Remuneration Report 
at 31 December 2011, are as follows:
Date granted
Options
outstanding
Exercise
price
pence Exercise period
March 2002 259,917 110.0 March 2005 – March 2012
April 2003 254,528 33.5 April 2006 – April 2013
March 2004 85,762 2.5 March 2007 – March 2014
600,207  56 KBC Advanced Technologies plc Annual Report 2011
40. Movements on reserves
Share
capital
£000
Share
premium
£000
Capital
redemption
reserve
£000
Merger
reserve
£000
Own
shares
£000
Proﬁt
and loss
account
£000
Total
£000
At 1 January 2010 1,429 8,060 55 929 (452) 16,164 26,185
Proﬁt for year ————— 2,601 2,601
Share-based payments ————— 275 275
Shares issued 15 12 — — (13) — 14
Shares purchased ———— (267) — (267)
Shares cancelled (58) — 58 — — (1,182) (1,182)
Utilisation of own shares ———— 487 (487) —
Dividends ————— (916) (916)
At 1 January 2011 1,386 8,072 113 929 (245) 16,455 26,710
Proﬁt for year ————— 2,008 2,008
Share-based payments ————— 300 300
Shares issued 14 9 — — (13) — 10
Shares purchased ———— (162) — (162)
Utilisation of own shares ———— 245 (245) —
Dividends ————— (1,100) (1,100)
At 31 December 2011 1,400 8,081 113 929 (175) 17,418 27,766
41. Contingent liabilities
The Group’s bankers hold a cross guarantee and debenture over all assets of KBC Advanced Technologies plc, KBC Process Technology 
Limited and Linnhoff March Limited. This is in place as security for the overdraft, guarantee and forward exchange facility.
42. Capital commitments
At 31 December 2011 and 2010 the Company had no capital commitments.
43. Related party transactions
During the year the only related party transactions for which disclosure is required under FRS 8 Related Party Disclosures are with 
KBC Environmental Limited. Transactions with wholly owned subsidiaries are not disclosed.
The Company had the following transactions with KBC Environmental Limited:
2011
£000
2010
£000
Group VAT transfers 7 (10)
Group corporation tax relief (2) —
The Company had the following year-end balance with KBC Environmental Limited:
2011
£000
2010
£000
Amounts owed to subsidiary undertaking 5 10
FINANCIAL STATEMENTS
Notes to the Company ﬁnancial statements continued OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
57 KBC Advanced Technologies plc Annual Report 2011
KBC Advanced Technologies plc 
(incorporated and registered in England and Wales with registered number 01357958)
Notice is hereby given that the Annual General Meeting of KBC Advanced Technologies plc (the “Company”) will be held at 
KBC House, 42–50 Hersham Road, Walton on Thames, Surrey KT12 1RZ at 3.00 pm on 9 May 2012 for the purpose of transacting 
the following business:
Ordinary business
1.  To receive the audited ﬁnancial statements of the Company for the year ended 31 December 2011 and the Directors’ and auditors’ 
reports thereon;
2. To receive and approve the Directors’ remuneration report for the year ended 31 December 2011;
3. To re-appoint BDO LLP as the Company’s auditors and to authorise the Directors to ﬁx their remuneration;
4. To re-elect William George Bright as a Director of the Company;
5. To re-elect Ian Adam Godden as a Director of the Company;
6.  To declare a ﬁnal dividend for the year ended 31 December 2011 of 1.55p per Ordinary share payable on 15 May 2012 to the holders 
of Ordinary shares of the Company whose names appear on the register of members of the Company at the close of business on 
4 May 2012.
Special business
To consider and, if thought ﬁt, to pass the following resolutions which will be proposed, in the case of Resolution 7, as an ordinary 
resolution and, in the case of Resolutions 8 and 9, as special resolutions of the Company:
7.  That the Directors be generally and unconditionally authorised pursuant to Section 551 of the Companies Act 2006 (the “Act”) to allot:
 (a)  relevant securities (within the meaning of Section 551 of the Act) up to an aggregate nominal amount of £466,824 
representing a number of Ordinary shares of 2.5p each (the “Shares”) equivalent to approximately one third of the 
issued share capital of the Company at the date of this notice; and
 (b)  equity securities (within the meaning of Section 560 of the Act) up to an aggregate nominal amount of £933,648 representing 
a number of Shares equivalent to approximately two thirds of the issued share capital of the Company at the date of this 
notice (such an amount to be reduced by the aggregate nominal amount of relevant securities issued under paragraph (a) 
above), in connection with a rights issue to holders of Shares in proportion (as nearly as may be) to their holdings of such 
shares and so that the Directors may impose such exclusions or other arrangements as the Directors may deem necessary 
or expedient to deal with equity securities representing fractional entitlements and with legal or practical problems under 
the laws of, or the requirements of, any regulatory body or any stock exchange in any territory or otherwise.
The authorities referred to in this Resolution 7 shall be in substitution for all other existing authorities dealing with the subject matter 
of this Resolution and shall expire (unless previously revoked or varied by the Company in general meeting) at the earlier of the 
conclusion of the Annual General Meeting of the Company to be held in 2013 and 30 June 2013. The Company may before such expiry 
make offers or agreements which would or might require such securities to be allotted after the expiry of the authority and the Directors 
are hereby authorised to allot such securities in pursuance of such offers or agreements as if the authority conferred hereby had not 
expired. This authority shall replace all existing authorities conferred on the Directors in respect of the allotment of such securities to 
the extent that the same have not been previously utilised.
8.  That the Directors, pursuant to Section 570 of the Act, be empowered to allot equity securities (within the meaning of Section 560 
of the Act) for cash pursuant to the authority conferred by Resolution 7 as if Section 561(1) of the Act did not apply to any such 
allotment, provided that this power shall be limited to:
 (a)  the allotment of equity securities where such securities have been offered (whether by way of a rights issue, open offer 
or otherwise but in the case of the authority granted under paragraph (b) of Resolution 7 by way of rights issue only) to 
holders of Shares in proportion (as nearly as may be) to their holdings of such shares and so that the Directors may impose 
such exclusions or other arrangements as the Directors may deem necessary or expedient to deal with equity securities 
representing fractional entitlements and with legal or practical problems under the laws of, or the requirements of, any 
regulatory body or any stock exchange in any territory or otherwise; and 
 (b)  the allotment of equity securities pursuant to the authority granted by paragraph (a) of Resolution 7 (other than pursuant to (a) 
of this Resolution 8) of equity securities (i) arising from the exercise of options outstanding at the date of this Resolution and 
(ii) up to an aggregate nominal value of £70,030 or 5% of the issued share capital of the Company, whichever is the higher; 
  and this power shall expire (unless previously revoked or varied by special resolution of the Company in general meeting) at the 
earlier of the conclusion of the Annual General Meeting of the Company to be held in 2013 and 30 June 2013. The Company may 
before such expiry make offers or agreements which would or might require equity securities to be allotted after the expiry of the 
authority and the Directors are hereby authorised to allot equity securities in pursuance of such offers or agreements as if the 
authority conferred hereby had not expired. This authority shall replace all existing authorities conferred on the Directors in 
respect of the allotment of relevant securities to the extent that the same have not been previously utilised.
SHAREHOLDER INFORMATION
Notice of Annual General Meeting 58 KBC Advanced Technologies plc Annual Report 2011
Special business continued
9.  That the Company be and is generally and unconditionally authorised to make market purchases, within the meaning of Section 693 
of the Act, of Shares provided that:
 (a) the maximum aggregate number of Shares which may be purchased under this authority is 8,403,672 Shares;
 (b) the minimum price, exclusive of expenses, which may be paid for each Share is 2.5p;
 (c)  the maximum price, exclusive of expenses, which may be paid for each Share shall be an amount equal to 105% of the average 
of the middle market quotations for the Shares taken from the listing of the AIM market of London Stock Exchange plc over 
the five business days immediately preceding the day on which the Shares are contracted to be purchased;
 (d)  the authority to purchase conferred by this Resolution shall expire at the earlier of the conclusion of the Annual General 
Meeting of the Company to be held in 2013 and 30 June 2013, unless the authority is extended before then; and
 (e)  the Company may make a contract to purchase Shares in the capital of the Company under this authority before its expiry 
which would or might be executed wholly or partly after such expiry and in any such case the Company may make such 
a purchase under the contract after the expiry of this authority.
By order of the Board
Janet Ireland  Registered Office
Company Secretary  KBC House
13 March 2012  42–50 Hersham Road
   Walton on Thames KT12 1RZ
shAreholder informATion
Notice of Annual General Meeting continued OVERVIEW BUSINESS REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
59 KBC Advanced Technologies plc Annual Report 2011
Notes
1.  A member entitled to attend and vote at the Annual General Meeting (“AGM”) convened by the notice above is entitled to appoint 
one or more proxies to exercise all and any of his rights to attend, speak and vote in his place. You may appoint more than one proxy 
provided each proxy is appointed to exercise rights attached to different shares and each such form of proxy shall specify the shares 
in respect of which each proxy is appointed. You may not appoint more than one proxy to exercise rights attached to any one share. 
A proxy need not be a member of the Company. Forms for the appointment of a proxy that can be used for this purpose have been 
provided to members with this notice of meeting.
2.  To be valid, forms of proxy must be lodged with Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol 
BS99 6ZY not later than 3.00 pm on Monday 7 May 2012. If the AGM is adjourned, or in the case of a poll taken subsequent to the 
date of the AGM or the adjourned AGM, the proxy must be received at the above address not less than 24 hours before the time 
of the adjourned AGM or the time appointed for the taking of the poll.
3. Completion of a form of proxy does not prevent a holder of shares from attending and voting at the AGM should he or she so wish.
4.  In order to have the right to attend and/or vote at the AGM, a person must be registered on the register of members of the Company 
not later than 6.00 pm on Monday 7 May 2012 or, in the case of an adjournment of the AGM, at the time which is 48 hours before the 
time appointed for the adjourned meeting. Changes to entries in the register of members of the Company after 6.00 pm on 7 May 2012 
shall be disregarded in determining the rights of any person to attend and/or vote at the AGM.
5.  To appoint one or more proxies or to give an instruction to a proxy (whether previously appointed or otherwise) via the CREST system, 
CREST messages must be received by the issuer’s agent (ID number 3RA50) not later than 48 hours before the time appointed for 
holding the meeting. For this purpose, the time of receipt will be taken to be the time (as determined by the timestamp generated 
by the CREST system) from which the issuer’s agent is able to retrieve the message. The Company may treat as invalid a proxy 
appointment sent by CREST in the circumstances set out in Regulation 35(5)(a) of the Uncertiﬁcated Securities Regulations 2001.
6. In order to facilitate voting by corporate representatives at the AGM, arrangements will be put in place at the AGM so that:
 (a)  if a corporate member has appointed the Chairman of the meeting as its corporate representative with instructions to vote on 
a poll in accordance with the directions of all the other corporate representatives for that member at the AGM, then, on a poll, 
those corporate representatives will give voting directions to the Chairman and the Chairman will vote (or withhold a vote) as 
corporate representative in accordance with those directions; and
 (b)  if more than one corporate representative for the same corporate member attends the AGM but the corporate member has 
not appointed the Chairman of the meeting as its corporate representative, a designated corporate representative will be 
nominated from those corporate representatives who attend, who will vote on a poll and the other corporate representatives 
will give voting directions to that designated corporate representative. A corporation which is a member can appoint one or 
more corporate representatives who may exercise, on its behalf, all its powers as a member provided that no more than one 
corporate representative exercises powers over the same share.
7.  Copies of the contracts of the Directors with the Company and/or its subsidiaries are available for inspection at the registered ofﬁce 
of the Company during normal business hours on any weekday (except Saturdays and public holidays). 
Explanation of Resolution 4
Following formal performance evaluation, Mr Bright continues to be an effective Director and demonstrates commitment to the role. 
Mr Bright’s biographical details are set out in the Company’s Annual Report for the year ended 31 December 2011.
Explanation of Resolution 5
Following formal performance evaluation, Mr Godden continues to be an effective Non-Executive Director and demonstrates 
commitment to the role. Mr Godden’s biographical details are set out in the Company’s Annual Report for the year ended 
31 December 2011.
Explanation of Resolution 7
The Directors wish to renew at the forthcoming AGM the authority and power which were granted to them at the AGM held on 11 May 2011. 
Such authority and power are normally given on an annual basis to the Directors of a company that has its shares traded on AIM. The Act 
provides that the Directors may not issue new shares unless authorised to do so by the shareholders. In Resolution 7 an authority is being 
sought to issue new Shares up to a maximum aggregate nominal amount of £933,648, representing a number of Shares equivalent to 
approximately two thirds of the issued share capital of the Company at the date of this notice. Such authority will (except in relation to 
commitments which have been made but not fulﬁlled) lapse on 30 June 2013 or, if earlier, at the conclusion of the AGM of the Company 
to be held in 2013.
In 2008 the Association of British Insurers (“ABI”) issued new guidance on the approval of authorities to allot shares in which it stated 
that, in addition to requests for authorisation to allot new shares in an amount up to one third of the existing issued ordinary share 
capital of a company, it would regard as routine requests to authorise the allotment of a further one third in connection with a rights 
issue. In light of this, paragraph (b) of Resolution 7 proposes that a further authority be conferred on the Directors to allot unissued 
Ordinary shares in connection with a rights issue in favour of holders of equity securities up to a maximum aggregate nominal amount 
of £933,648 (such amount to be reduced by the nominal amount of any relevant securities issued under the authority conferred by 
paragraph (a) of Resolution 7). 
The granting of this authority will ensure that the Directors are able to maintain a degree of ﬂexibility for the issue of Shares without 
the need to obtain shareholders’ consent on each occasion. The Directors have no present intention to exercise this authority except 
in connection with the Company’s employee share incentive schemes. In the event that this further authority is exercised, the Directors 
intend to follow emerging best practice as regards its use (including as to the requirement for Directors to stand for re-election) as 
recommended by the ABI. 60 KBC Advanced Technologies plc Annual Report 2011
Notes continued
Explanation of Resolution 8
If new Shares are to be allotted for cash, Section 561(1) of the Act requires the new Shares to be offered ﬁrst to the existing holders 
of Shares on a proportionate basis. Resolution 8, which will be proposed as a special resolution, is in accordance with normal practice 
and, if passed, will give the Directors the power to allot Shares for cash without ﬁrst offering those Shares to existing shareholders. 
This power will allow the Directors to implement rights issues, open offers or other similar such issues of Shares without complying 
fully with the pre-emption requirements of the Act which can prove unduly burdensome in certain circumstances (for example, in the 
case of shareholders resident in certain overseas countries). Power is also being sought to enable the Directors to issue Shares for 
cash otherwise than on a pre-emptive basis in relation to outstanding share options and otherwise for new Shares up to an aggregate 
nominal amount of £70,030 which represents a number of Shares approximately equal to 5% of the Company’s issued share capital at 
the date of this notice. If given, the power contained in this Special Resolution will (except in relation to commitments which have been 
made but not fulﬁlled) lapse on 30 June 2013 or, if earlier, at the conclusion of the AGM of the Company to be held in 2013.
Explanation of Resolution 9
This Resolution, which will be proposed as a special resolution, will grant authority to the Company to purchase its Shares in the market up 
to a limit of 8,403,672 Shares, representing approximately 15% of the issued shares at the date of this notice. The minimum and maximum 
prices to be paid for the Shares are detailed in this Resolution and the authority will (except in relation to commitments which have been 
made but not fulﬁlled) lapse on 30 June 2013 or, if earlier, at the conclusion of the AGM of the Company to be held in 2013. Although the 
Directors do not currently intend to exercise the authority being sought to make speciﬁc purchases of any Shares, they consider it to be 
beneﬁcial to have the ﬂexibility of such an authority to make purchases within the terms of the Resolution. The Directors would carefully 
consider any exercise of the authority being sought and would only make purchases provided that due consideration had been given to 
the overall ﬁnancial position of the Company and if it was in the best interests of shareholders generally. Shareholders would be advised 
immediately after any repurchase of Shares as to whether such Shares had been cancelled or were held in treasury. As at 13 March 2012 
options over 3,782,316 Shares were outstanding under the Company’s share option schemes representing 6.75% of the Company’s 
issued share capital at that date. If the authority being sought by the Company to purchase its Shares were to be exercised in full, such 
options would represent 7.94% of the Company’s issued share capital at 13 March 2012. The performance targets of the share option 
schemes would be adjusted automatically in the event of any change in the Company’s capital structure.
SHAREHOLDER INFORMATION
Notice of Annual General Meeting continued Shareholder information
Company Secretary
Janet Ireland
Registered ofﬁce
KBC House 
42–50 Hersham Road 
Walton on Thames KT12 1RZ
Registered number
01357958
Auditors
BDO LLP
Emerald House 
East Street 
Epsom KT17 1HS
Principal bankers
HSBC Bank plc 
HBEU City of London Corporate Banking Centre 
First Floor 
60 Queen Victoria Street 
London EC4N 4TR
Principal solicitors
Shoosmiths
Apex Plaza 
Forbury Road 
Reading RG1 1SH
Nominated advisor and broker
Cenkos Securities plc
6.7.8. Tokenhouse Yard 
London EC2R 7AS
Registrars
Computershare Investor Services PLC
The Pavilions 
Bridgwater Road  
Bristol BS13 8AE
Key dates
Preliminary announcement of results  13 March 2012
Annual General Meeting  9 May 2012
Final dividend proposed to be paid 
with respect to 2011 15 May 2012
Half year results (not conﬁrmed) 11 September 2012
Printed on Cocoon Silk 100% which is made from 100% 
recycled ﬁbres sourced from post consumer waste.  KBC Advanced Technologies plc
KBC House 
42–50 Hersham Road 
Walton on Thames KT12 1RZ 
UK 
Tel:  +44 (0)1932 242 424 
Email: info@kbcat.com 
Website: www.kbcat.com
Europe/Middle East/Africa 
KBC Process Technology Ltd
KBC House 
42–50 Hersham Road 
Walton on Thames KT12 1RZ 
UK 
Tel:  +44 (0)1932 242 424
KBC Process Technology Ltd
4 Cheshire Avenue 
Lostock Gralam 
Northwich CW9 7UA 
UK 
Tel:  +44 (0)1606 815 100
KBC Process Technology Ltd
Netherlands Branch 
Willemstraat 26 
4811 AL Breda 
Netherlands 
Tel: +31 (0)76 531 6131
KBC Process Technology Ltd
Representative ofﬁce in Russia 
Skakovaya Street 17 
Building 2 
125040 Moscow 
Russian Federation 
Tel:  +7 495 980 8449
KBC Process Technology Ltd
Representative ofﬁce in Bahrain 
Ofﬁce 41 
Jawhara Plaza 
Road 2831, Building 2373 
Block Al-Seef District 428 
Manama 
Kingdom of Bahrain 
Tel:  +973 17 562488
Americas 
KBC Advanced Technologies, Inc.
15021 Katy Freeway 
Suite 600 
Houston, TX 77094 
USA  
Tel:  +1 281 293 8200
KBC Advanced Technologies, Inc.
4 Campus Drive 
2nd Floor – South 
Parsippany, NJ 07054 
USA 
Tel:  +1 973 889 8922
KBC Advanced Technologies, Inc.
3131 South Vaughn Way 
Suite 300 
Aurora, CO 80014 
USA 
Tel:  +1 303 368 0300
KBC Advanced Technologies, Inc.
13873 Park Center Road 
Suite 65  
Herndon, VA 20171 
USA 
Tel:  +1 703 435 7880
KBC Advanced Technologies 
Canada Ltd
Suite 314 
333 11th Avenue SW 
Calgary 
Alberta T2R 1L9 
Canada 
Tel:  +1 403 206 1533 
Asia 
KBC Advanced Technology Pte Ltd
435 Orchard Road #16-02/03 
Wisma Atria 
Singapore 238877 
Tel: +65 6735 5488
KBC Process Technology Ltd
Japan Branch 
Nishi-Shimbashi YS Bldg 5F 
2-19-2 Nishi-Shimbashi 
Minato-ku 
Tokyo 105-0003 
Japan 
Tel:  +81 (0)3 5777 6550
KBC Advanced Technologies 
(Beijing) Co Ltd
1903 Tower A 
China International Science & Technology 
Convention Center 
No 12 Yumin Road 
Chaoyang District 
Beijing 100029 
People’s Republic of China 
Tel:  +86 (0)10 8225 3838
KBC Advanced Technologies 
Private Ltd
C-Wing, Unit No.304 
Delphi CHS    
Hiranandani Gardens 
Powai 
Mumbai 400076 
India 
Tel:  +91 (0)22 6156 1700