1
Contents
Chairman’s Statement  2
Chief Executive’s Review  3
Imagination at a Glance 10 
Understanding Imagination  12
The Core of Imagination  27 
Directors and Advisers  31
Directors’ Report  33
Corporate Governance  38
Remuneration Report  45
Independent Auditors’ Report  50
Consolidated Income Statement  51
Consolidated Statement of Comprehensive Income  51 
Consolidated Statement of Financial Position  52 
Consolidated Statement of Changes in Equity  53 
Consolidated Statement of Cash Flows  54 
Notes to the Consolidated Financial Statements  55 
Consolidated Five Year Record  85 2
Chairman’s 
Statement
This year has seen continuing 
momentum in our business. Another 
strong year of growth in licensing 
activity and an increasing number of 
partners shipping devices incorporating 
our technology have led to a 30% 
increase in revenue to £127.5m with 
adjusted proﬁt before tax increasing by 
53% to £36.8m. 325m devices were 
shipped in the year by a more diverse 
range of partners and across a broader 
range of our technologies.
The Technology business continues 
to strengthen with notable licensing 
agreements with a number of strategic 
partners, across the full range of our 
technologies. These agreements 
will provide the momentum for the 
business to grow in the coming years 
in all the dynamic markets that our 
partners cover.
Pure has continued its development 
in international markets, in particular 
with the launch of a Digital Audio 
Broadcasting (DAB) radio network in 
Germany. These overseas markets 
have offered us more than 50% year on 
year growth and have helped to offset 
the continuing tough retail environment 
in the UK. The year has also seen the 
development of important strategic 
products which will be important for  
the business going forward. 
To support the broadening customer 
base and the diverse range of 
technologies we provide, the business 
continues to invest in its key resources. 
These investments enable us to 
provide the customer support that our 
partners require to deliver world leading 
products, and will enable us to scale 
to the levels necessary to maintain our 
leadership in the markets in which we 
operate. We are particularly pleased 
with the progress being made by our 
recent acquisitions and also in our 
efforts in the area of connectivity which 
is of ever increasing importance in the 
markets we address.
Scaling the business and the challenges 
around this are treated as an important 
aspect of our development. As part of 
this we have taken and will continue to 
take steps to ensure appropriate levels 
of governance commensurate with our 
growing business. In this regard we 
have strengthened our board with the 
appointment of two new Non-Executive 
Directors. We will keep this aspect of 
our development under review and 
reﬁne our approach in preparation for 
the opportunities and challenges ahead.
I must again mention and give huge 
credit for the success of the Group and 
its exciting progress to our some 1,200 
employees. Their desire for success, 
commitment to quality and exceptional 
efforts are exemplary.
Thank you too for your keen interest 
and continued support.
Geoff Shingles 
Chairman 3
Chief Executive’s 
Review
Overall the Group has maintained 
its momentum and performed very 
well during the year and is now in a 
fundamentally stronger position. 
The full year saw excellent ﬁnancial and 
strategic progress for the Technology 
business, with a very active period of 
licensing and strong royalty revenue 
growth. The Group successfully closed 
a number of important licensing deals 
and secured many new partners.
The unit volume shipment was 
at the higher end of expectations 
demonstrating the strength and 
growing diversity of the SoC design 
wins. These resulted in a signiﬁcant 
jump in operating proﬁt for the 
Technology business. Our technologies 
continue to be in demand with an 
active pipeline of prospects. The 
extensive design wins achieved are a 
clear indication of generally broader 
and deeper engagements both across 
customers and the Group’s IP families. 
As expected, the Pure business 
continued to be held back during 
the period by the general economic 
pressure on consumer spending 
particularly in the UK. However, this 
was offset by strong momentum and 
growth in its international business, 
which showed more than 50% year-
on-year growth resulting in the division 
showing marginal revenue growth in a 
difﬁcult economic environment. 
Financial Review 
Group revenues for the period ending 
30 April 2012 increased by 30% to 
£127.5m (2011: £98.0m).
The strong growth from both royalties 
and licensing increased Technology 
revenues by 41% to £98.2m  
(2011: £69.8m).
Royalty revenue increased by 55% to 
£63.8m (2011: £41.3m). Partners’ chip 
shipments increased by 33% to 325m 
units as more of our customers started 
shipping devices (2011: 245m).
The average royalty rate strengthened 
in the period due to phasing out of 
legacy royalty share agreements, 
shipment of devices incorporating more 
of our IP in each chip and chips with 
newer generation IP starting to ship.
Strong demand for our technologies 
resulted in a 21% increase in licensing 
revenue to £34.4m (2011: £28.5m). 
The licensing activity was strong as 
we built deeper relationships with 
existing customers and established 
relationships with signiﬁcant new  
and diverse range of customers,  
across the full range of IP developed  
by Imagination.
For Pure, the strong growth in overseas 
markets helped offset the impact of 
the tough UK market and resulted in 
growth in revenue to £29.3m (2011: 
£28.3m). 36% of Pure’s revenue came 
from the strongly growing international 
markets.
Driven by the strong progress in the 
very high margin Technology business, 
Group gross proﬁt was up 38% to 
£106.5m (2011: £77.3m), with overall 
gross margin up to 84% (2011: 79%).
Underlying Group operating expenses 
increased to £69.8m (2011: £53.4m). 
Underlying expenses excluded non-
cash share-based incentives charge 
of £10.3m (2011: £5.9m), amortisation 
of intangibles £2.7m (2011: £0.9m), 
a credit on the revaluation of deferred 
consideration of £4.0m (2011: £nil), 
and a gain on investments of £0.7m 
(2011: £nil). The operating expenses 
included £7.9m of HelloSoft and 
Caustic expenses (2011: £2.2m). The 
remaining year on year increase of 21% 
represents the investments made in 
the underlying business in customer 
support / infrastructure reﬂecting the 
rapid growth in the licensee base.
Adjusted operating proﬁt* for the 
Technology business increased 48% 
to £39.6m (2011: £26.7m) driven by 
the very strong increase in royalty 
Financial and Business Review  4
revenues. The adjusted net operating 
margin for the Technology business 
increased to 40% (2011: 38%).
The difﬁcult trading conditions have 
resulted in Pure recording an adjusted 
operating loss* of £2.9m (2011:  
loss £2.8m).
The Group’s adjusted pre-tax proﬁt* 
increased by 53% to £36.8m (2011: 
£24.0m). The reported pre-tax  
proﬁt was up 74% to £28.5m  
(2011: £16.4m).
The net tax charge was £8.1m 
(2011: credit £2.9m) although due 
to the deferred tax asset there were 
no UK corporation tax payments in 
the period. Due to the proﬁts made 
in the year, the deferred tax asset 
on the Group balance sheet to be 
utilized against future UK proﬁts has 
reduced to £18.8m (2011: £24.9m). 
UK corporation tax payments will only 
commence once the deferred tax 
assets have been utilized.
The Group’s adjusted earnings 
per share* was 11.0p (2011: 7.9p 
assuming a normalised tax rate of 
26%). The Group’s reported earnings 
per share increased to 7.9p  
(2011: 7.7p).
Capital expenditure was £12.3m (2011: 
£13.5m) with the primary element being 
the re-development of the Group’s 
property facilities in Kings Langley.
There was a substantial increase in 
operating cash in-ﬂow in the year to 
£29.1m (2011: £19.2m) generated 
from the strong increase in Group 
operating proﬁt. This has led to net 
cash resources increasing to £66.3m 
(2011: £49.4m).
Technology Business
During the year the Technology 
business continued to make signiﬁcant 
progress in its three key metrics:
 New licensing deals, which generate 
short-term revenue and represent a 
key measure for general technology 
adoption  
 Partner chip volume ramp-up, which 
drives royalty revenues
 Growth of SoC design wins, 
which are indicative of technology 
deployment and the underlying 
drivers behind future royalty 
generation 
Licensing
The active and strengthening 
pipeline of opportunities led to a 
number of strategically and ﬁnancially 
signiﬁcant licensing agreements or 
deal extensions involving around 30 
customers and just under 50 major IP 
licenses as well as a number of smaller 
deals and upgrades.
Among the important agreements, 
there were new partner deals with 
Actions Semiconductor, Allwinner, 
Compound Photonics, HiSilicon, 
Huawei, Ingenic, MStar, Qualcomm, 
Ricoh, Rockchip and ZTE as well as 
signiﬁcant new licenses or extensions 
with existing partners including CSR, 
Frontier Silicon, Intel, MediaTek, 
Realtek, Renesas, Samsung, Sigma, 
Sony, ST, ST-Ericsson, Sunplus, 
Toumaz and others. 
The target markets for these include 
mobile phone, TV/STB, PMP, tablets/
mobile computing, in-car navigation/
dashboard and industrial/enterprise 
equipment. 
Graphics – The Group has continued 
to see accelerating momentum in 
design-wins for its PowerVR graphics 
technology, which has so far achieved 
over 120 licenses, including many 
partners that are working on designs 
using the multi-processing (MP) core 
variants of the Series5XT family. Over 
100 devices, in development or in 
production use PowerVR Series5 
and Series5XT. The Group’s new 
generation technology, codenamed 
‘Rogue’, has been acknowledged 
by many key partners as the market 
leader and has already secured around 
ten licensees with the number of 
committed SoCs with this family now 
approaching 20. This technology was 
delivered to our lead partners earlier 
this year and we have now seen ﬁrst 
silicon based on this IP from some of 
our partners. 
PowerVR graphics technology now has 
*  The reconciliation from reported results to adjusted results is set out in Note 2. 5
a very strong and/or growing footprint 
across the three major mobile platforms 
namely iOS, Android and the emerging 
Windows Phone 8. Semiconductor 
partners using PowerVR graphics for 
the Android platform now exceed 14 
with eight top tier companies. This is 
ensuring strong market share in this 
platform particularly as new partners 
launch their products. With respect 
to the new Windows 8 and Windows 
Phone 8 platforms we have multiple tier 
one partner engagements and expect 
a strong play in these areas as they 
launch in 2012 and beyond.
The TV and STB market areas were 
among the most active during FY 
2011-12 with a record number of 
licenses closed and as a result SoC 
commitments in this segment have 
grown signiﬁcantly.
PowerVR technology has a very strong 
and comprehensive roadmap to 
ensure its market-leading position. The 
complementary ray tracing technology, 
obtained through the Caustic 
acquisition, is on track and will, in due 
course, further strengthen our offering 
and add to our competitive position. 
Video – PowerVR video decode and 
encode families support the latest and 
emerging video decode and encode 
formats. We are seeing growing 
adoption of these technologies among 
our partners with a number of new 
licenses added during the year. An 
increasing number of our graphics 
licensees are also selecting our video IP 
to be integrated alongside our graphics 
cores. Around 50% of the devices with 
our IP shipped annually include our 
video cores.
The growing demand for video 
technology is driven by content delivery 
and, increasingly, user content creation 
(e.g. YouTube) and two-way delivery 
of video. The trend is towards the 
widespread use of the internet for video 
content delivery including both mobile 
video delivery and the internet-protocol 
(IP) TV capability needed in video-on-
demand and catch-up TV.
In keeping with our strategy of 
providing leading-edge and market-
driving technologies to our customers 
we have recently launched the new 
Series4 video processors offering 
increased performance and precision 
and supporting the emerging ultra HD 
resolution displays of 4Kx2K pixels. 
This enables very high quality and/
or displaying full HD at the same time 
as related information such as social 
network interactive pages. These 
technologies are needed with respect 
to future generations of smart  
TV products.
Display – PowerVR I2P and 
FRC deliver image processing 
enhancements for TVs, STBs and other 
consumer devices. The convergence 
trends are increasingly requiring 
features reserved for the TV market 
to migrate into other categories 
including mobile phones, tablets/mobile 
computing and in car multimedia. Our 
offerings are particularly strong in low-
power and size efﬁciency as well as 
delivering the required quality. We have 
secured multiple design wins across 
this IP family involving both tier one and 
smaller companies. 
Connectivity/broadcast – The 
interest and engagement in the 
Ensigma UCC family of IP cores 
continues to grow. We secured ﬁve 
new or repeat licenses this year with 
the total number of active partners 
now standing at seven. We also have 
a strong and growing pipeline of 
engagements and evaluations on-
going for this technology. Ensigma 
UCC programmable radio processing 
units (RPU) support worldwide TV and 
radio reception as well as important 
connectivity standards such as Wi-
Fi, all running on the same silicon 
engine in software. This technology 
is increasingly essential for delivery of 
Cloud and broadcast content to home 
and also within the enterprise. Already 
we have partner devices in volume 
shipment using this technology for 
digital radio and Wi-Fi connectivity and 
we expect several new partner devices 
targeting multi-standard/global TV 
markets to begin shipment during the 
current ﬁnancial year.  6
Embedded processor cores – the 
Meta family of processors offers 
state-of-the-art general-processing 
combined with multi-threading, 
demanding real-time and signal-
processing capabilities. These 
capabilities are ideal for highly 
integrated, feature-rich and cost 
effective systems. With its extensive 
capabilities, Meta technology is also 
ideal as an application processor for 
running the operating system whilst 
also offering the built-in multi-threading, 
real-time and signal processing 
capabilities to carry out other key tasks, 
eliminating external hardware. 
These features combined with our 
Ensigma technology offer a highly 
efﬁcient ’connected processor‘ 
which we believe is well positioned 
for many connected devices and the 
emerging Machine-to-Machine (M2M) 
applications. We have introduced the 
new MetaFlow family to address these 
market segments and are supporting 
this offering with new and innovative 
Cloud-connected client and portal 
technologies marketed under  
Flow Technology.
Many of our IP cores integrate Meta 
processing cores already. Over 50%, 
i.e. more than 160m, of the annual 
volumes of our IP shipments deploy 
Meta technology and we expect this 
trend to continue upwards. 
The growth of open source operating 
systems such as Android and other 
Linux implementations, the trend 
towards heterogeneous systems/
standards and the inevitable growth of 
internet connectivity across the majority 
of devices, will further drive deployment 
of higher-end Meta processors in 
application processors in a variety  
of markets. 
V.VoIP – Since the acquisition of 
HelloSoft, we have established 
strong V.VoIP product lines, including 
platform agnostic SDKs. As a result, 
we have seen a number of important 
engagements with respect to our VoIP 
(Voice-over-IP) and V.VoiP (Video and 
Voice-over-IP) technologies. This is in 
part driven by the arrival of 4G/Long 
Term Evolution (LTE) networks which 
require VoIP on LTE (VoLTE) an area 
where HelloSoft product lines can 
have a strong play. HelloSoft V.VoIP 
technology has now been adopted by 
a number of key network operators 
for both enterprise and consumer 
segments with a number of handset 
design-wins also secured.
Partner chip shipments 
and royalties 
Partner chip unit shipments grew 
to 325m units (2011: 245m units). 
Growth was driven by increasing sales 
in mobile phone, PMP, tablet/mobile 
computing devices, TV/STB, digital 
radio and car navigation/dashboard. 
As expected the shipment volume 
substantially accelerated during 
the second half to over 200m units 
(2011:138m). This was due to the 
timing of new handset launches for 
both Android and iOS in October 2011, 
the migration of our newer licensees 
from development phase to volume 
ramp of their application processors 
and the usual holiday period demand 
surge. The ramp-up was also 
enhanced further by the growth in 
volume in other categories including 
tablets and mobile computing devices 
as well as growing volume in gaming 
devices and STBs/TVs. 
SoC design wins  
and pipeline
SoC design wins are the driver for 
future partner chip shipments and 
royalty revenue growth. Strong 
continuing momentum saw new 
partner SoC design wins increase to 
136 (net of obsolescence) (2011: 115). 
Of these, 60 are shipping or beginning 
to ship, with the balance of 76 still in 
design. The latter will be the driver  
for signiﬁcant further royalty  
revenue growth. 
These committed devices are 
continuing to diversify across 
Imagination’s partners and key  
market segments:
 43 for mobile phone application 
processors  7
 Eight for handheld multimedia 
(PMPs, hand-held gaming/
entertainment, camera, mobile TV) 
 37 for Home Consumer 
Entertainment (TVs, STBs, DVDs, 
digital radio and audio, connected 
audio, and home entertainment 
devices) 
 17 in mobile computing (tablet/
mobile computing) 
 18 for In-car (navigation, dashboard, 
personal navigation devices) 
 13 for other markets covering green 
energy, networking, healthcare, 
enterprise, industrial, amusement  
and toys
Pure business
Despite the economic environment 
in the UK, Pure was able to grow 
its revenues whilst also carrying its 
strategic tasks in support of the overall 
Group objectives. This was driven 
by strong export business as digital 
radio deployment spreads across EU 
and elsewhere and the growth of the 
market for connected radio and  
audio devices. 
Pure product lines have been and 
continue to be based on using 
Imagination’s underlying IP in 
processing, connectivity/broadcast 
and multimedia and are planned 
and developed to create supportive 
technologies and solutions to drive 
selected markets and the adoption of 
Imagination’s technologies in those 
markets. To provide some clarity on 
Pure’s activities and its strategic goals 
it should be noted that chronologically 
Pure has focussed on the following 
three areas:
1. Digital radio. Pure’s product line 
drove the market from the early days 
and set the much needed agenda 
to help develop this new market. 
This continues today in the form of 
supporting and driving the adoption 
of digital radio internationally. 
These include key markets such as 
Germany, Australia and Switzerland 
where Pure’s activities have been 
instrumental in the excellent 
progress made. Pure has executed 
these strategic tasks very effectively 
and has directly inﬂuenced the 
development of the market and 
helped in securing a signiﬁcant 
market share for Imagination. Over 
70% of digital radios shipped today 
including those by many leading 
brands other than Pure are based 
on Imagination’s Ensigma UCC and 
Meta technologies.
2. As a ﬁrst step in helping to drive 
home connectivity and automation, 
Pure has been focussed on wireless 
audio streaming across three key 
application areas; hybrid internet 
and broadcast radio enabling 
access to global radio stations 
and audio content; advanced 
interactive internet connected 
services especially Cloud music 
delivery which deploys Imagination’s 
Cloud enabling technologies; and 
audio streaming of content from 
popular mobile devices to home 
audio systems and speakers. These 
developments and product offerings 
are part of a careful plan to both 
pathﬁnd and reﬁne Imagination’s key 
IP for the home environment, help in 
the development of complementary 
strategic technologies (e.g. 
Imagination’s Connected Processor 
and Flow technology) and very 
importantly develop selected 
markets.
3. A key goal is to ultimately 
contribute to the emergence 
and development of the home 
automation opportunities 
through use of Imagination’s 
processing, connectivity and Cloud 
technologies. This is the latest area 
of strategic focus for Pure with 
technologies and products yet to  
be announced. 
Several key products were launched 
during the last ﬁnancial year in line 
with the above strategic objectives. 
The most recent products include the 
new ﬂagship Sensia 200D Connect, 
the Contour 200i Air and the Contour 
100Di. The Sensia 200D Connect 
combines digital radio, internet radio,  8
extensive services from Pure Lounge 
and Wi-Fi streaming from phones and 
tablets through Pure Apps. Contour 
200i Air is Pure’s ﬁrst Airplay product 
and Contour 100Di comes with a dock 
for iPad, iPhone and iPod as well as 
the free companion internet radio and 
music streaming app from Pure.
The second generation Highway in-
car digital radio and audio adapter, 
Highway 300Di launched with Halfords 
and more recently under an OEM 
arrangement via Alpine. Pure Music, 
a Cloud-based on-demand music 
service, was launched in the UK with 
other services and regions coming 
soon. Other products launched 
included Move 2500, a new pocket 
digital and FM radio and successor 
to the best-selling and award-winning 
PocketDAB 1500. The new EVOKE Mio 
by Orla Kiely (Abacus Flower Edition) 
achieved strong coverage in this year’s 
Christmas gift guides and was in fact 
one of Pure’s best-selling radios over 
the peak season. Pure’s One family 
of radios has also been refreshed and 
the One Classic and One Elite Series 2 
have been updated with innovative  
new features.
The One Classic Series 2 has already 
received a highly prestigious What 
Hi-Fi? Sound and Vision ﬁve star 
award and a Gold Medal in the Mail 
on Sunday’s Live Awards. Other 
key awards include Contour 100Di 
achieving 5 stars from TechRadar 
and What Hi-Fi? Sound and Vision 
magazine, One Flow being awarded 
5 stars in BBC Music magazine and 
winning both ‘Best internet radio 
under £150’ in the 2011 What Hi-Fi? 
Sound and Vision Awards and ‘Best 
Digital Radio Product of the Year’ in 
Australia’s Sound and Image Awards. 
The new Highway 300Di also won the 
coveted Auto Express 2012 ‘Product of 
the Year award’.
The Group’s investment in developing 
the Flow connectivity and FlowWorld 
Cloud portal technologies, which form 
the basis of Pure’s ‘www.thelounge.
com’ portal and, in collaboration with 
ecosystem partners, enable services 
such as Pure Music, is a key and 
strategic activity that Pure is helping 
to drive. This platform will be part of 
Imagination’s licensable technologies 
and will help to enable the next 
generation of Cloud-based products 
and services across home automation, 
assisted-living/healthcare, security and 
other emerging internet-connected 
devices. Over time we will be offering 
our Cloud enabling technology, Flow, 
in its own right, bringing our portal 
technology, connectivity and processor 
IPs together to address the many 
emerging connected applications 
beyond the radio market.
Outlook 
Our business has made signiﬁcant 
progress to date but the full exploitation 
of many of our key technologies is 
still at a relatively early stage in many 
markets. For example, the smart 
phone market alone is forecast by 
industry analysts to grow over three 
times by 2015 reaching an annual 
volume around 1.5bn units. Given 
our strong existing and growing 
partnerships across both of the 
important established platforms, 
iOS and Android, where we have 
strong presence, and also our serious 
involvement in the emerging Windows 
Phone 8 platform with multiple tier one 
partners, we believe a market share 
goal of over half of the total smart 
phone market by 2015 and beyond, is 
a reasonable and realistic goal.  
Additionally our strong presence in the 
fast-growing tablet market, where the 
vast majority of the leading platforms 
are using devices with our technology, 
with industry analysts suggesting this 
market will reach over 300m units by 
2015 means this segment will make   9
a notable contribution to the  
Group’s progress.
The favourable transitions in TV/STB 
markets towards ’smart‘ functionality 
where we have many active partners 
and have seen signiﬁcant design-win 
growth this year is set to increasingly 
contribute to our volume ramp-up. 
We believe that these facts as well as 
our growing partnerships with respect 
to our other key complementary 
technologies including PowerVR video, 
Ensigma connectivity, Meta/MetaFlow 
connected processor, HelloSoft V.VoiP, 
across several diverse markets, will 
create the demand for the Group to 
achieve the target of around 1bn per 
annum unit shipments by 2016.
We also continue to see good demand 
in all of our IP offerings which is 
manifesting itself in an on-going active 
pipeline of licensing prospects. There 
are extensive on-going evaluations and 
engagements across all of our IP lines.
Despite the current economic 
environment, Pure continues to 
showcase effectively and drive some 
of our key technologies. This business 
is expected to see improvements as 
the international revenues continue to 
grow and as the economic environment 
improves in the medium term. Pure 
is an integral part of the Group’s 
strategy and focuses on targeting 
emerging consumer markets that can 
beneﬁt from a driver and pathﬁnder 
approach. This has been successfully 
executed in digital radio in the UK with 
the focus now moving to international 
development. Our strategy will 
ultimately also lead to complementary 
areas involving home connectivity  
and the provision of useful remote 
Cloud services.
The Board is conﬁdent that Imagination 
remains very well placed for further 
solid growth based on the strong 
momentum in and strengthening of 
its business with the active licensing 
pipeline, the secured and growing 
extensive SoC design wins, expected 
chip volume ramp and royalty growth, 
as well as the potential for Pure 
to exploit its strong product line-
up, including its Cloud-connected 
solutions, internationally.
Hossein Yassaie 
Chief Executive
19 June 2012 10
Why choose Imagination?
1,000,000
units shipped
per day
Eleven
products 
per second
containing our IP
Imagination  
has more than 1,200 
people. Over 80%  
are engineers.
Partner chips shipped up 33% to 325m units
Imagination at 
a glance
Graphics
Time
Adoption
Today
Video
On-chip multi-standard 
communications
Flow connected  
micro, M2M
1 Performance
Our unique and innovative IP does the job better 
than anything else on the market.
2 Proven
Our IP is proven in hundreds of millions of 
devices and hundreds of successful products 
from world-class brands.
3 Low Power
Our power-efficient architectures enable eco-
friendly products and longer battery life.
4 Roadmaps
Our customers use our scalable IP in multiple 
products and markets for maximum return  
on investment.
5 Solutions
Our solution-based approach and strong 
ecosystem programmes make our IP easy  
to integrate. 11
New Pure  
wireless streaming  
products including new  
ﬂagship Sensia and  
ﬁrst Airplay enabled  
product
Flow-based Pure  
music service launched  
in the UK with other services  
and regions coming soon
Strong growth in chip 
design wins with 136 
active partner chips  
and 60 in production
We operate in 14 countries,  
yet are proudly British
SUNPLUS
Signiﬁcant partner 
expansion in China
unity
65mm SoC
28mm SoC
40mm SoC
IP core  
licenses  
almost  
50% UP  
over the  
last year
GPU is occupying  
more and more of the  
total SoC area
CPU GPU
Video
Decode
4-pipe GPU
4-pipe GPU
4-pipe GPU
4-pipe GPU
SMP
SMP
SMP
CPU
SMP
CPU
SMP
CPU
SMP
CPU
SMP
CPU
SMP
CPU
Video 
Decode
Other  
IP & 
Memory
Other IP & 
Memory
MP
N-pipe GPU
N-pipe GPU
N-pipe GPU
N-pipe GPU
N-pipe GPU
N-pipe GPU
N-pipe GPU
N-pipe GPU
Video 
Decode
Video 
Encode
MP
IP licensees
Industry partners 12
Understanding 
Imagination
Imagination was established in 
1985 in Britain and has a long 
history as an IP provider, with 
partners amongst the world’s 
top-20 semiconductor and OEM 
companies. We license fundamental 
multimedia, communications and 
processor technologies and receive 
a royalty when products using those 
technologies ship into the market.  
Our job is to  
add smartness  
to things
Imagination is more than a 
semiconductor IP company. Our focus 
is increasingly on solutions, and that 
includes the extensive software and 
infrastructure required for enabling 
system-level solutions.
Each of our core technologies is built 
on a smart-innovation. These include 
the tile-based deferred rendering 
(TBDR) of PowerVR graphics; the 
efﬁcient combination of ﬁxed and 
reconﬁgurable elements in PowerVR 
video; the fully programmable heart 
of our Ensigma connectivity and 
communications core; the multi-
threading of our Meta processors;  
the interoperability of our VoIP 
technology; and the streamlined 
approach to handling high-realism 
images in our Caustic Professional  
and PowerVR ray tracing. 
Imagination  
is different 
We have worked alongside some of the 
biggest semiconductor companies in 
the world and seen ﬁrst hand how our 
customers respond to our business 
model, which puts partnership and the 
mutual goal of volume shipment ﬁrst, 
vs. the industry norms. 
Imagination is focused on systems 
and solutions and takes the initiative to 
get inside how consumers think about 
and experience new technology. We 
understand market needs and work to 
drive markets in positive directions. We 
think beyond the expected, using our 
imagination to visualise a better future.
One of our core beliefs is that 
everything is possible. 
Who are we?
#1 in  
digital  
radio 13
Imagination is 
honoured to work 
with the best
Our partners include the best 
companies in the semiconductor, 
electronics and consumer spheres. 
They have created some of the most 
iconic and culturally important products 
of the 21
st
 century. 
We are proud to contribute 
technologies which satisfy the 
creativity, attention to detail, and 
aspirations of some of the brightest 
stars of engineering, software 
development and innovative business. 
We are delighted to be one of the 
springboards from which so much 
innovation, change and delight  
has come. 
We constantly hear from our staff that 
they are meeting with people – whether 
strangers, family or friends – whose 
lives have been changed by products 
from our customers with Imagination 
inside. The impact of our partnerships 
is a major motivation and source of 
satisfaction for each of us. 
#1 in  
mobile video
#1 GPU for  
smartphones 14
Imagination customers create 
highly differentiated products using 
our technologies 
Consumer-centric companies are 
increasingly focused on delivering 
complete application platforms which 
include App Stores, Cloud content 
and more. A consistent hardware 
and software platform based on 
our technologies makes it possible 
to ensure the best environment 
for delivering rich multimedia 
content to consumers, thanks to 
our thriving ecosystem of industry-
leading applications and middleware 
developers.
Our partners are amongst the best 
companies in electronics and the 
decisions they make about how to use 
our fully ﬂexible and synthesizable IP 
help them to create solutions tailored 
for their customers and markets.
While our customers use the same 
fundamental technologies, our 
whole range is designed to enable 
differentiation, whether by using 
differing API (Application Programming 
Interfaces) and OS (Operating 
Systems), selecting parts optimized for 
different power, performance and cost 
metrics, or design in to a wide variety 
of processes and architectures. 
Our business is not just about our 
ability to deliver proven and well-
supported IP today. It is fundamentally 
driven by our capability to create a 
roadmap of future technologies that 
accurately anticipates the requirements 
of tomorrow’s consumers and captures 
the support and increasing involvement 
of our partners.
We have partnerships with the 
strongest suppliers in the markets we 
target and many of our partners now 
ship products using our technology into 
multiple markets. 
Combined with our compelling IP 
roadmaps, which are the cornerstone 
of Imagination’s on-going leadership, 
these partnerships will continue to take 
us forward to higher volumes and new 
market areas. 
Imagination creates IP for every  
major function in today’s SoCs
Communications
Graphics  
GPU Compute
Video
Display
Processor 15
Partnership is 
a core value of 
Imagination
Each of our major IP families contains 
innovations and capabilities that attract 
world-leading partners, not only as 
customers, but also as allies in the 
development of new markets, open 
standards and opportunities.
We have several main types of partner:
 IP core licensees, who are our  
main customers 
 Industry partners, who include  
the alliances and organizations  
which help set the pace for 
technology change
 Technology partners, representing 
the most innovative and successful 
technology businesses 
 Branded consumer electronics 
manufacturers, including some of the 
world’s most recognized OEMs
 Software developers, who engage 
with us to beneﬁt from our expertise 
and industry contacts
 Silicon industry partners, such as 
engineering services, EDA (Electronic 
Design Automation) companies and 
silicon foundries, to ensure our IP  
is ready for deployment in the  
latest processes
Our business is not built on achieving 
the highest number of partners, but 
rather working closely with the very 
best in the industry and keeping in step 
with their long-term strategies. These 
partners recognize that Imagination is 
a leader in the market and value their 
engagement with us.
A British company 
with a world 
outlook
We have over 40 nationalities working 
at Imagination across our divisions, in 
nearly 20 countries. This year we have 
expanded into new countries, such as 
Poland, and grew our teams in every 
territory where we operate, with the 
biggest growth in the UK. 
Imagination has over 1,200 employees 
and the majority are engineers –  
around 80%. 
We hold The Queen’s award for 
Enterprise in the International Trade 
category, the ﬁfth Queen’s award we 
have won.
This year we have run successful 
events with our partners around the 
world, including Korea, Japan, Taiwan, 
the USA, Poland, China, the UAE and 
of course the UK.  
Imagination has delivered on a strategy 
of innovation and diversiﬁcation that  16
has created a globally recognized 
technology company. Thanks to the 
long and deep relationships we have 
with our licensees, strategic partners 
and our shareholders, we believe 
the lives of hundreds of millions of 
consumers around the world are being 
enriched by Imagination.
We expect our 
partners to ship 
1 billion units per 
year by 2016
At the time of writing Imagination IP 
has shipped in over 800m devices, 
cumulatively, with 325m of those 
shipping in the last year. 
Many of those devices contain more 
than one of our technologies. If you 
break our technologies down by 
the number shipped you’d ﬁnd that 
PowerVR graphics has shipped in over 
700m devices, making it our most 
widely implemented technology. 
However today nearly half of our 
volume shipments annually contain our 
video or display IP which has shipped 
over 300m units to date, in many cases 
alongside our graphics technology. 
We’d expect this, as video is a key 
technology for camera, phone and 
TV applications, and also our second 
‘oldest’ IP family. 
Our Meta CPU processors have 
shipped over 300m units. In part this 
is because they are the ‘glue’ in many 
of our video and communications 
solutions, though we are now seeing 
Meta being used on its own. Our 
PowerVR Series6 graphics IP also 
uses Meta cores. We expect Meta to 
take off even further as we introduce 
both higher performance applications 
processor cores and connected 
processor cores into the market soon. 
Our Ensigma technologies have 
shipped in tens of millions of devices. 
With strong tier one licensees gained 
for Ensigma this year we expect 
its volumes to grow notably as the 
market accepts the requirement 
for its innovative approach to 
communications. 
We know many people still think of 
Imagination as ‘that graphics company’ 
but the number and types of IP cores 
shipped is showing that our other 
technologies for video, connectivity, 
communications and processing are all 
achieving strong unit volumes as well 
as success commensurate to the time 
they’ve been in the market compared 
to our GPUs (Graphics Processing 
Units). We have also acquired and 
developed new technologies that will 
extend the range of markets we  
can address. 
Headquarters 
UK
R&D
Technology
UK, US, Poland, India, 
Australia and New Zealand
Pure
UK, India and China
Support
Technology
UK (Europe), US,  
Japan, South Korea,  
Taiwan and China
Sales
Technology
UK (Europe), US, Japan,  
South Korea, Taiwan and China
Pure
UK, Australia, France, Italy, 
Germany, Finland and US
Imagination technology conference in Taiwan 
co-sponsored by TSMC 17
There are four screens around which 
our lives are centred 
Increasingly consumer electronics (CE) 
devices have to deliver the internet, 
computing, TV, music, navigation and 
more in one platform. 
We focus on the ‘four screens’, 
which deﬁne the primary gateways 
for consumers to interact with their 
connected world: mobile phones, 
mobile computers, home consumer 
electronics and in-car. It is vital that 
any app or service provider delivers a 
consistent converged experience to its 
customers when they move between 
these devices, with particular focus 
on multimedia and connectivity – 
technology domains where  
Imagination excels.
The ‘four screens’ represent already 
well known segments. But the 
segments are all still evolving: each of 
them is increasingly getting smarter 
and more connected. 
In order to enable that connectivity, and 
to enable other new, more fragmented, 
markets like healthcare and security, 
we have developed an approach that 
combines our hardware processors 
with our software offerings, such as 
V.VoIP and Flow, to enable ﬂexible 
and highly extendable solutions which 
will help our partners create both 
connected devices and  
enabling services. 
We are already preparing to deploy our 
IP into those new segments via both 
new and existing partners.
The biggest 
changes can be 
the hardest to spot
We look for emerging markets, or ones 
in which ‘discontinuities’, or signiﬁcant 
changes, are creating opportunities 
for disruptive new technologies and 
technology providers. We create 
exceptional technologies to exploit 
those opportunities. 
While our technologies can be found 
in a wide variety of different product 
form factors, the markets we are 
engaged in can be broadly classiﬁed 
into six categories: mobile phone 
multimedia, handheld multimedia, 
home electronics, mobile computing, 
automotive and emerging markets.
Increasingly, consumers expect to 
be able to access the broad range of 
media and features they use every day 
no matter what device they are using. 
This ‘convergence’ means that the six 
categories increasingly share common 
requirements. Our common IP across 
all markets enables us to drive and ride 
the convergence trend. 18
Mobile Phone
Home Electronics
Automotive
Mobile Computing
Handheld 
Multimedia
Emerging 
Markets 19
Over 70% of internet trafﬁc is people 
watching video
And that’s just the tip of the iceberg 
when it comes to the importance  
of video. 
Streaming, Ultra-HD 4Kx2K displays, 
OLED screens with 10-bit colour 
capabilities, wireless displays, over the 
top services like Netﬂix, smart TVs and 
the new high-efﬁciency video codec 
(HEVC) will drive new opportunities  
and challenges into the video 
technology market.
Imagination is at the forefront of video 
technology, debuting unique features 
like 10-bit colour support and being  
one of the ﬁrst to adopt technologies 
that will create new applications  
and markets.
Stereoscopic 3D video has been a 
disappointment to the industry, with 
low consumer appeal. This is driving 
suppliers to already look for new, more 
consumer engaging technologies, such 
as 4K video, ‘surface’ TVs where HD 
video and apps are side by side on 
screen, and more realistic colour.
Imagination’s video solutions provide 
the full range of technologies required 
for this market, including display 
enhancement technologies such 
as frame rate conversion. Our new 
multi-processor solutions for video will 
further establish Imagination as the 
leading supplier in this market, where 
we already have around ten times the 
volume of our closest IP competitor. 
Graphics, video 
and memory 
have integrated 
into the SoC: 
communications 
technology is next 
The TV market is ﬁlled with numerous 
broadcast standards. For consumers 
this matters little, as the standards 
are geographical and most of us only 
encounter a handful, such as the 
DVB-T, DVB-T2, DVB-S, DVB-S2 and 
DVB-C used in the UK, or ISDB-T, 
ISDB-C, and ISDB-S in Japan.
However for manufacturers of TV SoCs 
(Systems on Chip) the proliferation 
of standards is a major headache, 
requiring the creation of dozens of 
chips to cover all world markets,  
at a cost of several million dollars per  
chip design. 
Imagination has successfully developed 
a multi-standard baseband solution for 
this market space over the last decade. 
Notably this technology is one of the 
major analog and digital radio receiver 
technologies deployed worldwide. 
Future 4K TVs will show much more than TV 20
Our Ensigma UCCP IP platform is an 
RPU (Radio Processing Unit) which 
includes digital TV, digital and FM 
radio, Bluetooth and Wi-Fi all on one 
programmable engine.
With around 30 standards now 
supported Ensigma is a compelling 
technology, which this year has moved 
from being a favoured technology of 
innovative start-ups to being licensed 
by tier one semiconductor companies. 
The next stage of evolution for this 
technology will come as the RPU is 
integrated within SoC, a trend we 
think is inevitable for reasons of cost, 
efﬁciency and power.
High pixel growth 
rate demands 
GPUs to be more 
powerful than ever
As screens move into the era of 
pixel-dense displays, where the pixels 
cannot be made out with the naked 
eye, and graphical user interfaces 
(GUIs) expand to take advantage of this 
visual real estate, systems need higher 
pixel processing capabilities. 
Across mobile devices, automobiles, 
computing, gaming and other products 
we are seeing developing trends 
that push the requirements for GPU 
capability higher. For example the rise 
of digital dashboards and rear-seat 
entertainment units in cars, larger or 
multiple-screen displays in gaming, and 
HD output even on mobile devices with 
sub-HD screens. 
PowerVR’s combination of wide 
API and OS support, a ﬂexible 
programmable architecture, and unique 
tile-based deferred pixel shading 
technology, which only draws the 
visible parts of scenes to deliver the 
highest performance per mW has 
made it the choice of the mobile and 
embedded world.
Imagination’s PowerVR graphics has 
a leading market share in the rapidly 
expanding mobile embedded graphics 
market and is very well positioned to 
remain the leading technology as the 
market grows. 
New generation PowerVR Series6 
‘Rogue’ products use the next 
generation of tile-based deferred 
shading as well as increased compute 
density and parameter and frame 
buffer compression technology to take 
performance to a new level.  
PowerVR partners are already 
enjoying Series6 parts in their labs and 
developing the products which, in due 
course, will once again raise the bar for 
mobile and embedded graphics. 
Ensigma is the only production IP 
solution with more than 20 standards
Analogue Digital 1st Gen Digital 2nd Gen  
(HD)
Digital 3rd Gen  
(Converged Global)
PAL DVB-T or 
DVB-S or 
DVB-C
DVB-T 
DVB-T2 
DVB-S 
DVB-S2 
Wi-Fi
DVB-Tn 
DVB-Sn 
DVB-Cn 
DVB-Hn 
ATSC M/H
ISDB-T 1/3/13 
GB20600 
Wireless HDM
FM/AM DAB FM 
DAB 
DAB+ 
Wi-Fi
Plus: 
FM 
DAB/DAB+/
DMB-R 
HDRadio
XM/Sirius 
ISDB-Tmm
Ethernet Plus: 
Ethernet 10/100/ 
1G/10G 
Wi-Fi 
WiMax 
Powerline
NFC 
UWB
TACS GSM GSM 
3G 
LTE 
Wi-Fi (VoIP) 
Bluetooth
Plus: 
2G/GSM 
3G/LTE/4G 
CDMA 
TD-SCDMA
PHS 
Bluetooth 21
GPUs are growing 
as part of the SoC
The current era of dual and quad core 
CPU designs represents a sweet spot 
for CPU multi-core scalability. Beyond 
two or four cores CPUs scale poorly 
due to their inherently sequential  
nature and applications designed for 
CPUs seldom use their multi-core 
capability effectively. 
In contrast, GPUs have better 
scalability due to their parallel 
processing design. Indeed, PowerVR 
GPUs can deliver up to 95% linear 
performance growth for key compute 
applications as you add cores. 
GPUs are using more and more of the 
overall area of the leading SoC designs, 
year on year. This trend favours 
Imagination, whose design philosophy 
has always been heterogeneous and 
which has the strongest GPU range  
for SoC.  
Heterogeneous 
processing 
unleashes full  
GPU potential
Heterogeneous means ‘diverse in 
character.’ Here at Imagination we’ve 
always felt that a SoC should be a 
collection of diverse processors in a 
peer-based system where each of 
them can accomplish certain tasks  
that the others are not architecturally 
suited for. This is a heterogeneous 
processing architecture. 
The best example of this is GPU 
compute, where the central processing 
unit (CPU) simply cannot cope with the 
large amount of parallel data it needs 
to process. Intrinsically a sequential 
design, this type of CPU processor is 
better suited for control and scheduling 
tasks. This is why the GPU, a true 
parallel engine, has to step in when 
intensive data processing tasks are 
tackled. The same concept applies  
for other processors that a typical  
SoC might include, such as VPUs 
(video processing units) and RPUs 
(radio processing units).
We are optimistic about future 
developments in optimally combining 
CPU, GPU and other processors in 
heterogeneous computing architectures. 
Imagination is a founder member of the 
HSA Foundation with partners AMD, 
ARM, MediaTek, Texas Instruments 
and Samsung to create standard APIs 
and tools, accelerating cross-platform 
and cross-operating heterogeneous 
computing applications, which will  
drive the next set of opportunities  
for SoC designers.
Photorealistic graphics with physics 
by GPU compute 22
Imagination is 
connecting people 
to the things that 
matter
Imagination seeks to drive and ride  
key trends.
Our technologies are designed in step 
with our vision of how wider technology 
trends are transforming society.
We were one of the ﬁrst to spot the 
role mobile devices would play in our 
culture and we are an early supporter 
of how connectivity will transform  
our lives. 
More and more devices are requiring 
to connect to the internet across every 
category of consumer entertainment 
and productivity product, as well as an 
emerging array of broader products 
from consumer healthcare equipment 
to home automation systems.
Imagination’s Flow technologies, 
HelloSoft communication software 
and Meta connected processors are 
helping to create this connected world 
and drive the new connected products 
that will transform markets like smart 
energy, security, healthcare, personal 
and industrial monitoring, white and 
brown goods and more. 
The success of 
our technologies 
naturally gives rise 
to ecosystems 
As use of our portfolio of IP 
technologies grows we are continually 
expanding our ecosystems and 
strategic partnership programmes, 
making them ever more valuable, 
comprehensive and rewarding.
These ecosystems consist of 
companies that create software or 
hardware using our IP, or create 
devices with our IP inside.
Our ecosystem programmes provide 
our licensees and partners with 
everything they need to ensure success 
and time to market.
Because our technologies lead, key 
applications are developed ﬁrst and 
foremost for our technology with ports 
to other platforms coming much later, 
if at all.
We have continued to expand our 
ecosystem programmes, to help 
Imagination’s licensees and key 
partners meet and engage with a 
broad community of developers, 
middleware providers, foundries, EDA 
and tool vendors, and third party 
support teams and provide extensive 
co-marketing opportunities for product 
manufacturers, content developers and 
semiconductor companies.
Connecting people to the things that matter
Home 
Automation
Healthcare
Computer
Phone
TV/Radio
Car
Toys
Industrial
Everything
Security
+
We need connected 
solutions for everything!
Meta Ensigma HelloSoft Other…
Now Future 23
If you are in a 
market without 
competition, you 
are in the wrong 
market
Even as the competitive landscape has 
become more crowded, evaluations of 
our IP by partners against alternatives 
have consistently shown our 
technological and quality advantages. 
The quality of our service and support, 
the reliability of our performance claims 
and the veracity of our R&D further 
reinforce these advantages with repeat 
business from many of our licensees.
While other IP companies compete 
with us it remains the internal design 
capability of our customers that is 
often our main competitor. As such we 
must ensure that our IP offers beneﬁts 
to our customers that far outweigh 
any advantages they could achieve by 
designing in-house.
Imagination’s consistent strength 
remains our ability to offer our 
exceptional performance, power 
consumption and functionality 
advantages in every one of the IP cores 
we design and develop.
We have demonstrated our ability to 
be very robust and highly competitive 
in increasingly dynamic IP markets, 
winning key design slots with 
many of the leading players in our 
target markets and displacing our 
competitors.
Our philosophy in this area is 
simple. We don’t design to beat our 
competitors. We design to deliver the 
broad range of technologies required 
by our customers to drive and change 
markets. 
Imagination is 
more than just 
graphics
Graphics processor IP is Imagination’s 
core technology. In the early 2000s 
when we ﬁrst said we would focus 
on mobile graphics the market was 
sceptical about on-chip GPUs, but now 
this technology is widely accepted, 
conﬁrming our vision. 
Now Imagination can provide a wide 
range of SoC IP solutions.  
By providing innovative technologies 
across all the fundamental building 
blocks of modern SoCs Imagination 
can develop deeper relationships 
with our partners and leverage the 
synergies in modern heterogeneous 
SoC designs. 
By providing core technology not just 
for graphics but also video, display, 
communications and connectivity 
Imagination can be a one stop shop  
for our partners.   24
Entanglement is 
the future
All mainstream consumer electronics 
products, including TVs, radios, 
cameras, printers and more will 
ultimately be connected to the internet 
and to each other. 
This revolution will reach far beyond 
these ‘traditional’ consumer devices 
into products as diverse as security 
monitors, instrumentation, white goods, 
toys and much more. 
We provide a unique range of cloud-
based technologies and services 
speciﬁcally designed to meet the needs 
of consumer and embedded product 
designers, with much more to come.
Beyond this our connected processor 
IP is extremely small, low cost, and low 
power – ideal characteristics to drive 
this key industry trend.
Imagination is a 
solutions company
Despite being regarded as a hardware 
IP company, Imagination in fact has 
many more software engineers than 
hardware engineers, reﬂecting the 
signiﬁcance of high quality software  
for our IP products.
Hardware does nothing without 
software. 
Our extensive software capabilities 
are a key part of our offering and a 
major differentiator, from drivers and 
reference code right through to our 
HelloSoft software platforms and 
beyond to key software technologies, 
such as Flow, which enables next 
generation cloud services. 
Our goal is to 
get our partners 
shipping in volume
Imagination’s customers include the 
world’s most successful semiconductor 
and consumer electronics companies, 
as well as smaller innovative companies 
who are leaders in their markets.
We are intensely relationship focused, 
working closely with our partners 
to help them get successfully to 
market, shipping high volumes of 
advanced semiconductors containing 
our technologies. As a royalty based 
business, our partners’ success is  
our success. 
The quality of support we offer our 
licensees both before and after 
licensing is a crucial differentiator of  
our business. 
As well as our core technologies we 
have a number of important technology 
offerings that support our customers’ 
designs and help them succeed.
Codescape is our comprehensive suite 
of development tools, which supports 
the advanced and unique features of 
Imagination’s IP cores.  25
Codescape already supports 
heterogeneous multi-processor SoCs 
making it a unique debug environment 
that works on all of the SoC, not  
just parts. 
IMGworks is an SoC integration 
support capability that we offer our 
customers to help them deliver their 
SoC designs, totally focused on solving 
the most difﬁcult problems in speciﬁc 
and challenging areas of silicon design. 
IMGworks offers the complete range of 
SoC integration, physical design, and 
custom development services. 
We also have our Platform Services 
group which is dedicated to helping 
customers accelerate time to market 
for their products by providing 
software integration, customization and 
optimization services. Together they 
enable licensees to fully exploit our  
IP offerings.
By working closely with EDA 
companies and foundries like TSMC, 
IMGworks ensures our IP is ready to 
be used in any design ﬂow and at all 
process nodes.
We only ship synthesizable IP that can 
be used at any silicon manufacture 
process node, whether by companies 
on the cutting edge of process 
development, or by smaller fabless 
companies using tried and trusted 
processes and aggressive cost 
engineering.
Beyond our direct licensees we 
also work with a broad ecosystem 
of developers whose energy is 
increasingly focused on supporting 
Imagination-based platforms as their 
top priority, with comprehensive tools, 
middleware and support as well as the 
most innovative and exciting content.
Imagination is 
enabling the 
‘Things’ in The 
Internet of Things
Imagination is enabling ubiquitous 
connectivity in all manner of embedded 
products across consumer, industrial 
and enterprise segments. Using our 
Flow technology it is possible for a wide 
range of developers, large and small, to 
prototype and deploy truly connected 
products and solutions.
Flow technology will enable the 
growth and acceleration of markets 
for products featuring connectivity 
across an increasingly diverse range of 
applications such as home automation, 
security, entertainment, toys, and 
healthcare. 
Just as we helped to revolutionize the 
use of graphics across the mobile and 
embedded markets we intend to do 
the same for connected embedded 
devices with Flow technology. 26
Imagination works 
closely with 
market leaders
As you read the ﬁnancial section of this 
report you will see that Imagination has 
fantastic momentum. Our core markets 
are likely to grow by up to 300% by 
2016 which means that the success 
we have already achieved is just  
the beginning. 
Our shipped SoC volume, via our 
partners, last year was 325m units 
across broad range of customers, 
markets and technologies. As we 
move towards our target of 1 billion 
units annual shipments the width of 
technologies and markets will  
increase further. 
Imagination’s wide range of partners 
are all very strong in their markets and 
together represent a competitive mix 
that reduces the inherent risks of being 
an IP supplier.
Our strategy is to work with the best 
and to work with them closely over a 
number of years. The majority of our 
business is repeat business. To that 
end we are very closely involved with 
our partners and satisﬁed that we have 
the best mix for on-going success.
Building a ‘braining 
up’ company
As Sky News put it in a recent interview 
with Imagination CEO Hossein Yassaie, 
building a ‘braining up’ company is  
a challenge. 
Education matters; getting talent 
remains an issue and Imagination 
is putting strong resource into both 
graduate and experienced recruitment.
This year we have set up a global 
Imagination Academy programme 
to bring further management, 
technical, professional and personal 
skills development to our staff, at all 
levels. The company wide Academy 
programme will ensure our people 
remain current in skills and innovative  
in viewpoint. 
Under the hood technology, built from 
fundamental science, needs people 
who can develop not just evolutionary 
technologies but the innovative, unique, 
underlying technologies that enable  
real change. 
If you know anyone who should work 
at Imagination, please tell them: we are 
always hiring, but we are looking for 
the best. 27
System on Chip IP
The SoCs (systems-on-chip) that power everything in the consumer and embedded electronics space can be constructed 
from combinations of our unique portfolio of IP cores. 
With our software and solutions we can go on to enable those SoCs to deliver the key multimedia, communications, 
connectivity and telecoms features customers require. 
We deliver the highest performance at lowest power consumption and silicon area by making full use of our advanced, 
patented low-level design features alongside system-level philosophies such as hardware multi-threading, system latency 
tolerance and reconﬁgurable multi-standard solutions. 
A key differentiator for Imagination is our ability to combine our technologies into platforms, which directly and efﬁciently 
provide solutions to our customers’ key requirements. We deliver complete solutions, resulting in the shortest time from device 
development to volume sales.
At the heart of our approach we have a simple design philosophy: deliver the maximum performance per mm2 of silicon and 
per mW of power.
PowerVR is a range of  
visual IP families for graphics, video  
and display.
Central to the PowerVR family is our 
GPU: a graphics processing unit to run 
graphics and complex parallel tasks.
At the heart of this technology is a 
unique tile-based, deferred rendering 
shader-based architecture which 
allows a very small die size to deliver 
higher performance and higher image 
quality at lower power consumption 
than all competing technologies.
PowerVR GPUs are also capable of 
doing more than just graphics. By 
using compute-based APIs (application 
programming interfaces) such as 
OpenCL, the PowerVR architecture 
delivers vast parallel processing 
power, increasingly referred to as GPU 
compute. Using this technology GPUs 
will increasingly come to dominate 
SoC ‘heavy lifting’ processor-intensive 
computing.
The PowerVR family also includes a 
VPU: a video processing unit. 
Our video technology is an 
exceptional balance of hardcoded 
and programmable elements, which 
combine to deliver the most efﬁcient 
multi-standard and multi-stream video 
decoders and encoders.
PowerVR display is another key part 
of the PowerVR portfolio, enabling the 
reﬁnement of each display pixel.
This technology delivers an unrivalled 
range of display enhancement 
technologies for high-deﬁnition TV 
(HDTV) and mobile devices. 
The Core of 
Imagination 28
Meta is a CPU: a multi-threaded 
central processing unit to run operating 
systems and signal processing (like 
audio). Meta has all the beneﬁts of multi-
processor solutions but uses less silicon 
resource and development complexity 
than other multi-processor approaches. 
Hardware multi-threading is a key 
technology for Imagination – most 
of our IP cores use this approach to 
extract the maximum possible processor 
performance from every clock cycle.
As well as being an integral part of our 
connectivity, communications and video 
IP platforms, Meta is licensed as a core 
part of SoC designs based on our IP. It 
is also now being increasingly licensed 
as a stand-alone embedded processor 
as more of our partners come to 
appreciate its unique capabilities.
Meta drives our connected processor 
family, which will enable ‘always on’ 
internet connectivity in mass market 
consumer and embedded products.
Ensigma is an RPU: a radio-
processing unit to run communications 
and connectivity tasks.
Ensigma solves the problem of 
proliferating broadcast and connectivity 
standards by supporting them all on a 
single device.
At the heart of this technology is 
a uniquely optimized balance of 
programmability and hardware 
conﬁgurability, yet it occupies equivalent 
or less silicon area than comparable 
hard-wired, single-standard hardware 
solutions.
With the Ensigma RPU one core can 
handle all radio, TV and connectivity 
standards. It uses a unique combination 
of hardware and software to create 
an ideally ﬂexible architecture with 
programmability and ﬁxed hardware 
blocks in sophisticated balance.
HelloSoft is a technology 
solution for V.VolP (Video and Voice 
over Internet Protocol) and VoLTE 
(Voice over Long Term Evolution) 
networks. It is the only cross-platform 
carrier-class software IP solution in the 
market that supports 4G. 
As telecommunication industries 
begin to use VoLTE technology more, 
mobile VolP applications will become 
more common. The key requirement 
for network operators in the 4G age 
is to make sure devices can access 
all different networks, with varied 
connecting technologies such as LTE, 
3G, Wi-Fi and WiMAX. 
HelloSoft can provide a single integrated 
solution that brings a seamless user 
experience to any platform and device. 
The technology is highly complementary 
to Imagination’s video, connectivity and 
Meta technologies.
Communications 
RPU
Multimedia  
GPU + VPU
Processor  
CPU
Memory
HelloSoft V.VoIP connects everyone across 
every network
Wi-Fi
Radio
TV
Modem
HelloSoft V.VoIP 
& VoLTE SDKs 
Legacy POTS, PBX, 
fax equipment
HelloSoft 
Gateway SDK
Any IP Network
Low cost Meta development system 29
Caustic 
Professional is  
changing the way we design using 
3D graphics. Building on fundamental 
Imagination IP, such as OpenRL, 
the open API for ray tracing, Caustic 
Professional is providing market 
changing technologies for a growing 
ecosystem of creative graphics 
professionals.
These include the Brazil API for 
developers, real time ray tracing 
visualisers for key apps such as 
McNeel & Associates Rhinocerous
®
 
and Autodesk
®
 Maya
®
 and 3ds Max.
What’s more, Caustic Professional, like 
our other product brand, Pure, serves 
as a vital pathﬁnder for Imagination. 
Already technologies developed by 
Caustic have formed the basis for 
PowerVR ray tracing R&D which over 
the next few years will take ray tracing 
from the high-end workstation market 
all the way down into gaming, mass-
market computing and mobile devices. 
...it could be real! – Ray tracing is a 
technique for rendering cinema quality 
3D at a level of near photographic 
realism that is impractical with 
traditional 3D graphics techniques. It 
is widely used in professional markets 
like CAD (computer aided design), 
‘look development’, and CGI (computer 
graphics imaging) for movies such  
as Avatar. 
Imagination has developed unique  
and patented technologies to  
radically lower the cost and 
dramatically increase the efﬁciency  
and performance of ray tracing.
The ray tracing approach has 
the added beneﬁt of substantially 
simplifying content creation and 
reducing associated cost.
Ray tracing technology has now 
been integrated into our PowerVR 
technology R&D path. 
Our PowerVR ray tracing unit (RTU) 
technology works fully in conjunction 
with and complements Imagination’s 
existing graphics processing IP. 
Imagination will use tightly coupled 
PowerVR GPU and RTU technology 
to drive major innovations in the 3D 
graphics market.
Look at the illustration of the watch on 
this page. It looks like a photograph 
doesn’t it? However it’s been created 
using Imagination’s ray tracing 
technology and it’s fully interactive.  
This is the future of graphical realism. 
Ray tracing images can be indistinguishable 
from photographs 30
Pure is Imagination’s CE 
(consumer electronics) division, 
alongside the technology division that 
develops, sells and supports our IP.
Pure is the world’s leading manufacturer 
of wireless music and internet radio 
systems, the number one supplier of 
digital radios in Europe and Australia, 
and the creator of the Evoke 1S, the 
world’s most popular and iconic digital 
radio. Pure leads the way in cloud 
services with the Pure Lounge portal 
and wireless/multi-room music systems 
with Pure Stream.
Pure radios support all the broadcast 
standards in the DAB family used 
across all key markets in Europe and 
beyond. Designed and engineered 
in the UK, all of Pure’s products are 
manufactured with the environment in 
mind and at ethically audited facilities.
Pure uses technology from Imagination 
partners, pathﬁnding in new markets, 
promoting the capabilities of our IP 
and allowing us to experience things 
as OEMs and consumers do, which 
helps keep us grounded and solution 
focused. 
As it did with digital radio, Imagination 
will continue to use Pure to drive  
some of the emerging markets we  
care about.
Pure brings Imagination to the front line 
where innovation and consumers meet. 31
Directors and 
Advisers
Geoff Shingles  
CBE, BSc (Hons), FIEE, FBCS, Chairman
Geoff was, until April 1994, Executive Chairman of Digital Equipment Co. Limited, 
where he served for 29 years. While at Digital, he worked both in the US and 
Continental Europe. He joined the Imagination Technologies board in 1994 
becoming Chairman in 1996. He is Non-Executive Chairman of Sarantel Group Plc 
and is also a Non-Executive Director of a number of private companies. 
Hossein Yassaie  
PhD, Chief Executive Ofﬁcer
After attaining his PhD, Hossein was a research fellow at the University of 
Birmingham. He then joined STMicroelectronics/Inmos, where he spent eight 
years, ultimately becoming responsible for the system divisions, including research 
and development, manufacturing and marketing. After joining Imagination in 1992 
as Technical Director, Hossein refocused the business on advanced technology 
development and created Imagination’s successful silicon IP business model. He 
became Chief Executive Ofﬁcer in June 1998.
Richard Smith 
MBA, MA, FCA, Chief Financial Ofﬁcer
Richard holds an MBA from Henley Business School, is a Fellow of the Institute 
of Chartered Accountants in England and Wales and has an MA in Economics 
from Cambridge University. His early career included positions with Porsche 
Cars and PricewaterhouseCoopers. Richard has worked in a number of privately 
held technology businesses as CFO, and prior to that held senior ﬁnancial roles 
at Vodafone. Richard joined Imagination Technologies in May 2011 and was 
appointed to the Board as Chief Financial Ofﬁcer on 1 July 2011. 32
Ian Pearson  
Dip Tech (Hons), C.Eng, FIEE, Non-Executive Director
Ian has over 30 years experience with companies specializing in semiconductor 
design, manufacturing and management, with director level responsibilities. These 
companies include Inmos and SGS Thompson. He joined the board as Non-
Executive Director in 1998. He is Chairman of the Remuneration Committee and 
serves on the Audit Committee. Ian is the senior Non-Executive Director. 
David Hurst-Brown  
BSc (Hons), FSI, Non-Executive Director
David worked for most of his career in the securities industry. In 2002 he left UBS, 
where, for more than 10 years he had worked in Corporate Finance as adviser to 
a wide range of companies. David now works mainly as a consultant and his Non-
Executive Directorships include Anite plc and Ffastﬁll plc. He joined the board of 
Imagination Technologies as a Non-Executive Director in September 2000. He is a 
member of the Audit and Remuneration Committees.
David Anderson 
MA, Non-Executive Director
David has 27 years investment banking experience including 17 years at Lazard 
and six years at JP Morgan Cazenove. He joined the board of Imagination 
Technologies as a Non-Executive Director in November 2010. He is Chairman of 
the Audit Committee and a member of the Remuneration Committee.
Gilles Delfassy 
Non-Executive Director
Gilles is a highly experienced and respected international ﬁgure in the 
semiconductor and mobile/wireless industry with 35 years of highly relevant 
experience, including almost 30 years at Texas Instruments, Inc (TI). He was a 
key pioneer and driving force behind the mobile/wireless initiative within TI, which 
helped to shape the industry. He is a member of the Audit and Remuneration 
Committees.
Imagination Technologies Group plc
Secretary 
A Llewellyn
Registered Ofﬁce 
Imagination House, Home Park Estate  
Kings Langley, Hertfordshire WD4 8LZ
Registered number 
2920061
Financial advisers and 
stockbrokers 
J.P. Morgan Cazenove
Auditors 
KPMG Audit Plc
Solicitors 
Olswang
Registrars 
Equiniti
Bankers 
HSBC Bank plc 33 
Directors’ Report 
The Directors submit their Annual Report and audited Financial Statements for the year ended 30 April 2012. 
P Principal Activities and Operations  
The principal activities of the Group are to create and license market-leading processor solutions for graphics, video, display, 
embedded processing, multi-standard communications and connectivity, and cross-platform Video and Voice over IP. These silicon 
and software intellectual property (IP) solutions for system-on-chip (SoC) are complemented by an extensive portfolio of software 
drivers, developer tools and extensive market and technology-focused ecosystems. 
The target markets include mobile phone, handheld multimedia devices, connected home consumer, mobile and tablet computing, in-
car electronics, telecoms, health, smart energy and connected sensors and controllers.The Group’s licensees include many of the 
world’s leading semiconductor, network operator and electronics OEM/ODM companies. 
The Group has two divisions. The Technology division is a semiconductor, software and cloud IP licensing business which provides 
market-leading multimedia and communications capabilities for complex SoC devices. The Pure division designs and manufactures 
innovative consumer products, using Imagination's technologies as a key differentiator alongside high quality product design. 
Review of Business  
The value and relevance of the Group’s technologies is reflected in Imagination’s continued strong growth despite the continuing 
challenges to the global economic environment.  
The full year saw excellent financial and strategic progress for the Technology business, with strong chip volume and royalty growth 
and a very active licensing period. The Group successfully closed a number of important licensing deals and secured many new 
partners. This resulted in a significant jump in operating profit for the Technology business.  
The Pure business continued to be constrained in the short-term by the general economic pressure on consumer spending. This was 
particularly evident in the UK market, although stronger overseas sales helped to generate an overall increase in Pure’s revenue. It is 
also important to note that Pure, in its own right, is making very valuable contributions to the development of fundamental intellectual 
property that are critical for key aspects of the Group’s future strategies.  
Cash resources, which have increased to £66.3m from £49.4m, are adequate for the Group’s future needs. 
A more detailed assessment of the Company’s position and future prospects has been included in the Chief Executive’s Review.  
This incorporates any significant events since the year end. Further details are included in pages 3 to 9 of the Annual Report and 
Financial Statements. 
The profit before tax for the Group for the year ended 30 April 2012 was £28.5m. There was a taxation charge of £8.1m which resulted 
in a net profit for the year of £20.5m. Full details are set out in the Consolidated Income Statement on page 51. 
The Directors do not propose the payment of a dividend (2011: £Nil). 
The key performance indicators used in the business are summarised below. The performance of the business in the terms of these 
indicators is considered in the Chief Executive’s Review in pages 3 to 9 of the Annual Report and Financial Statements. 
  Year to Year to 
  30 April 2012 30 April 2011 % 
Technology business 
 Licensing Revenue £34.4m £28.5m +21% 
 Partner Chip Design Wins 136 115 +18% 
 Partner Chips Shipping 60 48 +25% 
 Partner Chips Shipped (units) 325m 245m +33% 
 Royalty Revenue £63.8m £41.3m +54% 
 
Pure business 
 Revenue £29.3m £28.3m +4% 
 Adjusted operating loss* (£2.9m) (£2.8m)  
 
Group 
 Revenue £127.5m £98.0m +30% 
 Gross Profit £106.5m £77.3m +38% 
 Adjusted Profit before taxation* £36.8m  £24.0m +53%  
  Profit before taxation £28.5m £16.4m +74% 
 Cash and cash equivalents £66.3m £49.4m +34% 
 
* The reconciliation from reported profit to adjusted profit is set out in note 2. 34 
P Principal Risks and Uncertainties 
There are a number of risks and uncertainties which could impact the Group’s performance. The Group has a risk management 
structure in place which is designed to identify, manage and mitigate business risk. The relevant structures are more fully described in 
the Group’s internal control and risk management procedures in the Corporate Governance Report on page 38. The Group has 
experienced, and may in the future experience, fluctuations in the results of its operations. There are a number of factors that can 
affect the results. For the Technology business, these include the timing of new licence agreements with partners and the timing and 
volume of products incorporating the Group’s technology shipped by our partners. The Group seeks to reduce this risk by both 
broadening the number of partners who utilize the Group’s technology as well as widening the number of market segments that are 
targeted by the Group’s partners. For the Pure business, these factors also include the rate of adoption of digital radio technologies 
worldwide and the continuation of the supply of products from Chinese manufacturers. The Group has mitigated the latter by 
spreading the manufacture of the Group’s products across a number of manufacturers in order to reduce the reliance on any one 
manufacturer. 
The Group operates in fast moving competitive marketplaces characterized by rapid changes in technology. The Group’s result will be 
impacted by the introduction of new technologies and products by the Group and by the Group’s competitors as they respond to these 
changes in technology. In order to mitigate risk, the Group holds detailed dialogue with existing partners, as well as systems 
companies and industry bodies, in order to align its future products with advances in technology and market requirements. 
As a technology business, the development and ownership of intellectual property is fundamental to the Group’s performance. Whilst 
the Group relies on patent, copyright, trademark and other intellectual property laws to establish and protect its proprietary rights, it 
cannot be certain that its proprietary rights will not be challenged, invalidated, circumvented or used without the Group’s authorization. 
The Group mitigates the risk by filing patents, trademarks and registered designs as appropriate to protect its intellectual property and 
through monitoring technologies promoted by third parties. 
The Group transacts licence and development agreements with customers and purchases of products for Pure primarily in US dollars 
and, therefore, the Group’s earnings are exposed to fluctuations in foreign exchange rates. The Group reviews its foreign exchange 
exposure on a regular basis and, where there is a material exposure to exchange rate fluctuations and the Board considers it 
appropriate, the Group may reduce the risk by currency hedging on net receivable/payable balances. 
The Group’s performance is also subject to external macro-economic conditions. Changes in factors such as government debt levels, 
interest rates, inflation, unemployment and commodity prices can create uncertainty in the Group’s markets and affect consumer 
spending. This may result in the Group’s customers and potential customers delaying the placing of orders with the Group and/or the 
reduced shipment of products incorporating the Group’s technology. In turn, both of these would adversely affect the Group’s result. 
Future Developments 
The Group intends to continue to develop its range of graphics, video, display, processing and communication technologies for use in 
SoC devices. The Group will market these technologies to existing and new customers with a view to entering into commercial 
agreements for customers to incorporate the Group’s technology in their SoC devices.  
The Pure business will continue to develop additional products using the Group’s digital radio technology and internet 
connectivity/streaming audio technology. These products will be marketed to existing customers in the UK, and increasingly to 
overseas customers as digital radio markets emerge worldwide. 
Research and Development 
The Group spent £59,633,000 (2011: £44,696,000) on research and development and advanced technology projects. 
Donations 
During the year the Group made donations for charitable purposes of £3,785 (2011: £1,209). There were no political donations during 
the year (2011: £Nil). The Parent Company made no donations in the current year (2011: £Nil). 
Purchase of own shares 
At the AGM in 2011, shareholders granted the Company the authority to purchase, in the market, its own shares. During the year the 
Company did not undertake to purchase any of its own shares in the market place. At the AGM in 2012, the Directors will be 
presenting and proposing similar authority to shareholders.  
Directors during the Year 
G S Shingles, H Yassaie, R A B Smith, T Selby, I R Pearson, D A Hurst-Brown and D Anderson served as Directors during the year.  
G Delfassy was appointed a Non-Executive Director of the Company on 1 June 2012. 
Election and re-election of Directors 
In line with the provisions of the UK Corporate Governance Code each Director will be standing for re-election at the Annual General 
Meeting of the Company to be held on 14 September 2012. Trevor Selby left the Board on 1 July 2011 and Richard Smith was 
appointed as a Director and replaced him as Chief Financial Officer on that date.  
Executive Directors’ service agreements are contracts of employment with a rolling notice period of less than one year. 
Non-Executive Directors do not have any unexpired notice periods in their contracts.  35 
The terms and conditions of appointment of Directors are available for inspection at the company’s registered office and at the AGM.  
The disclosable interests of Directors at 30 April 2012 including holdings, if any, of wives and children aged under 18 were as detailed 
in the Remuneration Report on page 45 and they remain unchanged as at 18 June 2012. Details of incentive awards to Directors are 
shown in the Remuneration Report on page 45. 
Corporate Governance 
The Corporate Governance statement on pages 38 to 41 forms part of the Directors’ Report. 
Disclosure of information to auditors 
The Directors who held office at the date of approval of this Directors’ Report confirm that, so far as they are each aware, there is no 
relevant audit information of which the Company’s auditors are unaware; and each Director has taken all the steps that he ought to 
have taken as a Director to make himself aware of any relevant audit information and to establish that the Company’s auditors are 
aware of that information. 
Share Capital 
The Company’s share capital consists of ordinary shares with a par value of 10 pence each and there were 264,246,455 ordinary 
shares in issue as at 30 April 2012. The rights attached to ordinary shares are as follows: 
1. Each share carries the right to one vote at general meetings of the Company, and  
2. Shareholders are entitled to a dividend where declared. 
There are no specific restrictions on the transfer of ordinary shares in the Company other than certain restrictions imposed by laws, 
regulations and Listing Rules. There are no persons holding securities in the Company carrying special rights with regard to control of 
the Company. The Company is not aware of any agreement between holders of securities that may result in restrictions on the transfer 
of securities or on voting rights.  
Substantial Interests  
As at 7 June 2012 the Company had been notified or was aware that the following had direct or indirect interests in 3% or more of the 
share capital of the Company: 
  Ordinary Shares of 10p  Percentage 
   in the Company Holding 
Intel Capital Corporation  38,396,664 14.5% 
M&G Investment Management  25,628,416 9.7% 
Apple Inc  23,047,770 8.7% 
AXA Financial SA  22,694,557 8.6% 
Legal & General Investment Management   8,183,362 3.1% 
 
Going Concern Basis 
As set out in Basis of Preparation in note 1, the Group continues to adopt the going concern basis in preparing the financial 
statements. 
Qualifying Indemnity Provision 
The Company’s Articles of Association has a qualifying indemnity provision. The Company has in place insurance cover for its 
Directors and Officers with a cover limit of £10,000,000 throughout the year. 
Change of Control 
The Company’s share based incentive plans contain provisions relating to a change of control. The outstanding long-term incentive 
plans, share awards and performance share award to the CEO and the performance share award to the CFO would normally vest and 
become exercisable on a change of control of the Company, subject to the satisfaction of the performance targets. 
Employee Involvement 
The Group acknowledges the importance and contribution of its employees. There is considerable value placed on the involvement of 
employees in the development of the business and their participation in the decision making process. This is encouraged by the open 
environment in the Group and through the delegation of responsibility throughout the business. Presentations are made to all staff on a 
regular basis to encourage a full understanding of the Group’s performance, strategy, vision and operational developments. All 
employees usually receive share awards on a bi-annual basis and are invited to participate in the SAYE scheme every year. A number 
of employees have become shareholders thereby encouraging employee share ownership.  
The Group is committed to the principle of equal opportunity in employment and to ensure that no applicant or employee receives less 
favourable treatment on the grounds of age, gender, disability, ethnic origin, political or other opinion, religion or sexual orientation. We 
have an international workforce employing more than 20 nationalities from around the world in the UK and we have offices in India, 
Japan, China, Taiwan, Korea, USA, Poland, Italy, France, Germany and Australia.  36 
Disability is not seen as an inhibitor to employment or career development. Employees who become disabled are, wherever possible, 
given assistance to continue in their existing employment or to be trained for other positions. 
Corporate Social Responsibility Statements 
Information relating to employees, shareholders, graduate recruitment, scholarship sponsorship, charitable work in the local 
community and environment are provided in the Corporate Governance Report on pages 38 to 41.  
Significant Relationships  
The Group does not have any contractual or other relationships with any single party which are essential to the business of the Group 
and therefore no such relationships have been disclosed.  
Creditor Payment Policy 
It is Group policy to agree payment terms with suppliers when negotiating contracts or transactions.  
The Group ensures that, subject to any necessary variations which may result from supplier-related problems, the agreed payment 
terms are adhered to. 
The number of days billings from suppliers outstanding to the Group at 30 April 2012 was 43 (2011: 39 days). The Parent Company is 
purely a holding Company with investments and does not have trade creditors. 
Statement of Directors’ Responsibilities in respect of the Annual Report and the Financial Statements 
The Directors are responsible for preparing the Annual Report- and the Group and Parent Company financial statements in 
accordance with applicable law and regulations. 
Company law requires the Directors to prepare Group and Parent Company financial statements for each financial year. Under that law 
they are required to prepare the Group financial statements in accordance with IFRSs as adopted by the EU and applicable law and 
have elected to prepare the Parent Company financial statements in accordance with UK Accounting Standards and applicable law 
(UK Generally Accepted Accounting Practice). 
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 Parent Company and of their profit or loss for that period. In preparing each of the Group and 
Parent Company financial statements, the Directors are required to: 
• select suitable accounting policies and then apply them consistently; 
• make judgments and estimates that are reasonable and prudent; 
• for the Group financial statements, state whether they have been prepared in accordance with IFRSs as adopted by the EU; 
• for the Parent Company financial statements, state whether applicable UK Accounting Standards have been followed, subject to 
any material departures disclosed and explained in the Parent Company financial statements; and 
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and the Parent 
Company will continue in business. 
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Parent Company’s 
transactions and disclose with reasonable accuracy at any time the financial position of the Parent Company and enable them to 
ensure that its financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are 
reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities. 
Under applicable law and regulations, the Directors are also responsible for preparing a Directors’ Report, Directors’ Remuneration 
Report and Corporate Governance Statement that complies with that law and those regulations. 
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s 
website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other 
jurisdictions.  
Directors’ Responsibility Statement 
The Directors confirm that, to the best of their knowledge: 
• the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the 
assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a 
whole; and  
• the Directors’ Report includes a fair review of the development and performance of the business and the position of the Company 
and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and 
uncertainties that they face.   37 
Auditors 
A resolution is to be proposed at the Annual General Meeting for the re-appointment of KPMG Audit Plc as auditors of the Company. 
Annual General Meeting (AGM)  
The AGM will be held at 11.00 a.m. on 14 September 2012 at Imagination House, Home Park Estate, Kings Langley, Hertfordshire WD4 
8LZ. Business to be transacted at the Meeting is set out in full in the Notice of the AGM. After the AGM, the Company will publish on its 
website the proxy votes cast in respect of each resolution voted on at the AGM. 
 
 
 
 
 
 
By order of the Board 
A. Llewellyn 
Secretary 
18 June 2012  
Company Number: 2920061 38 
Corporate Governance  
Compliance with the UK Corporate Governance Code 
The Board is accountable to shareholders for the effective direction and control of the Group and this Annual Report provides details of 
the framework of corporate governance and internal controls that the Directors have put in place to enable them to carry out this 
responsibility. The Group has complied with the UK Corporate Governance Code (‘the Code’) and applied the principles of the Code 
throughout the year. Any areas of non-compliance of the Code are noted at the end of this section. 
Board Composition and Operation  
The Company operates through the Board of Directors and after the appointment of Gilles Delfassy on 1 June 2012, the Board 
comprised seven Directors, three Executive Directors and four Non-Executive Directors. Biographical details for each of the Directors 
are set out on pages 31 to 32. 
The Board is planning to add a further Non-Executive Director. In the forthcoming months it is the intention of the Company to carry out 
a review of the composition of all its sub-committees. 
Chairman 
The Chairman is responsible for the leadership and management of the Board. He ensures its effectiveness in all aspects of its role, 
setting its agenda and ensuring that the Directors receive accurate, timely and clear information. The Chairman facilitates the effective 
contribution of Non-Executive Directors and ensures constructive relations between Executive and Non-Executive Directors. The 
Chairman maintains the proper and appropriate level of communication with shareholders. During the year the Chairman has held 
meetings with the Non-Executive Directors without the Executives being present. 
The Board is satisfied that the Chairman’s other professional commitments listed on page 31 do not interfere with the performance of 
his duties for the Company. 
Chief Executive Officer  
The Chief Executive Officer is the key driver for proposing, developing and implementing the Group’s strategy and commercial targets 
as agreed by the Board. He is responsible for the day-to-day management of the business. The Chief Executive Officer carries out his 
duties in consultation with the Chairman, the Board and Executive Management Board (‘EMB’) which in turn are responsible for the 
commercial and operational activities of the Group. He holds weekly meetings with the CFO and EMB to ensure the Group are actively 
managing the overall strategy of the business. The Chief Executive Officer is also responsible, with the Executive team, for 
implementing the decisions of the Board and its Committees. 
Senior Independent Director 
The Senior Independent Non-Executive Director of the Company is Ian Pearson. He has appropriate dialogue with institutional 
shareholders to ensure their views are communicated to the Group and ensures that the performance evaluation of the Chairman is 
conducted effectively. 
Ian Pearson and David Hurst-Brown became Directors of the Company in 1998 and 2000, respectively, and have therefore been 
connected with the Group for more than 9 years. Non-Executive Directors have shareholdings in the Company as disclosed in the 
table on page 49. The Board continues to monitor the composition of the Board in line with the recommendations of the Code. Taking 
into account that both Ian Pearson and David Hurst-Brown have been connected with the Group for more than 9 years, the Board has 
reviewed and considered the independence of the Non-Executive Directors with particular care and scrutiny. All Directors contribute 
significantly through their individual skills and their considerable knowledge of both the Group and the industry, and they currently 
provide continuity and an overall balance to the Board. In particular, they continue to demonstrate a strong independence of 
management in the manner in which they discharge their responsibilities as Directors. Accordingly, the Board considers that Ian 
Pearson and David Hurst-Brown are Independent Non-Executive Directors. 
Operation of the Board 
The Board is responsible for the overall direction, strategy and performance of the Group. The Board usually meets formally on a 
monthly basis. There is a formal agenda of items to be addressed at Board Meetings which includes matters specifically reserved for 
the Board, principally comprising: Group-wide business and financial reviews, major capital or revenue expenditure, acquisitions or 
disposals, onerous business terms, treasury, risk items and Board appointments. At each meeting both the Chief Executive Officer and 
Chief Financial Officer present their respective reports, the Chief Executive Officer giving a full business update with focus on the 
Group’s relationships with current and potential partners and highlighting business-critical issues, and the Chief Financial Officer 
presenting the financial results for the year to date together with latest financial forecasts. All Directors have access to the advice and 
services of the Company Secretary, who attends the monthly Board meetings and is responsible to the Board for ensuring that Board 
procedures are complied with and that good information flows within the Board and Committees. Both the appointment and removal of 
the Company Secretary are a matter for the Board as a whole. 
By also attending and monitoring the content of meetings and agendas, the Directors consider that there is sufficient structure to 
ensure the Company’s strategy and control remain in the Board’s hands.  
  39 
The Board also meets periodically with senior management from the Group’s Technology and Pure divisions in order to review the 
strategic direction of the business. The main objectives are to assess and decide upon the key technologies/products/markets for the 
business to exploit by assessing the potential returns against the risks. The result is a common vision of the future aspirations of the 
business and an understanding of the function and goals that each division has within the strategy. Divisional business plans are built 
around executing the strategic plan. 
The Company’s EMB meets on a weekly basis, with attendance by the Chief Executive Officer and Chief Financial Officer. At a formal 
monthly meeting of the EMB, each member provides a monthly operational report in which progress against plan is reviewed to ensure 
that this is in line with the Group’s strategic and business targets.  
Performance Evaluation 
During the year, the Board reviewed its performance along with that of the Audit and Remuneration Committees. This assessment of 
performance is carried out by considering the objectives of each body and assessing the degree to which these objectives have been 
met. In the case of each Director, the performance review takes into account an individual’s level of commitment to the role, effective 
contribution and achievement in carrying out the role. The Non-Executive Directors are responsible for performance evaluation of the 
Chairman, taking into account the views of the Executive Directors.  
During the year, the Chairman periodically held meetings with the Non-Executive Directors without the Executive Directors being 
present and, in addition, the Non-Executives periodically held meetings without the Chairman or the Executive Directors being present. 
Board Appointments and changes 
All nominations to the Board will be considered by the Board and on 1 June 2012 Gilles Delfassy was appointed a Non-Executive 
Director to the Board. On 1 July 2011 Trevor Selby left the Board and Richard Smith was appointed as a Director and replaced him as 
Chief Financial Officer. The Board considers the appropriate composition of the Board from time to time and in future will continue to 
review its make-up. As the Board is small, a Nominations Committee has not been appointed. 
Audit Committee 
Members of the Committee 
During the year, the Audit Committee comprised David Hurst-Brown as Chairman, Ian Pearson and David Anderson as members. With 
effect from 8 June 2011, David Anderson took over as Chairman of the Audit Committee from David Hurst-Brown. The Code requires 
that the Board be satisfied that at least one member of the Committee has recent and relevant financial experience. The Board has 
considered this requirement and, taking into account the financial background of the Chairman of the Committee, is satisfied that this 
requirement has been met and that the Committee has sufficient experience to fulfil its obligations in an effective manner.  
Responsibilities 
The Committee is required to satisfy itself as to the adequacy and effectiveness of internal controls and compliance procedures within 
the Group and that the principles, policies and practices adopted in the preparation of the accounts of the Group and the annual 
financial statements comply with statutory requirements. The Audit Committee has written terms of reference which are available to be 
viewed at the AGM, and are available at www.imgtec.com.  
In discharging its responsibilities, the Committee reviews the interim and annual financial statements and the terms and scope under 
which the external auditors are appointed or reappointed. The Committee also reviews and monitors the external auditor’s 
independence and objectivity and the effectiveness of the audit process, taking into consideration relevant UK professional and 
regulatory requirements. The Committee holds meetings with the external auditors whenever it feels it needs advice or clarification of 
issues, but in any case the Audit Committee meets formally with the external auditors at least three times per year with, if required, a 
portion of the meeting without the Executive Directors present. The Committee is also responsible for determining and reviewing the 
policy for engaging the external auditor in respect of non-audit work. 
The Audit Committee reviews arrangements by which staff of the Group may in confidence raise concerns over possible improprieties 
in financial reporting or other matters. 
Remuneration Committee 
A description of the composition, responsibility and operation of the Remuneration Committee is set out in the Remuneration Report on 
pages 45 to 49 which is prepared in accordance with the Companies Act 2006.  40 
Board and Committee Meeting Attendance 
The attendance of Directors at Board meetings and Committee meetings is set out below: 
 
  Main Board  Audit Remuneration 
  Meetings Committee Committee 
No. of meetings 9 3 5 
G S Shingles 8 1*  3* 
H Yassaie 8 –  3* 
R A B Smith 9 3*  3*  
T Selby 1 1*  1* 
I R Pearson 6 3 5 
D A Hurst-Brown 8 3 5 
D Anderson 8 3 5 
 
* Denotes attendance by a Director, who is not a member of the Committee, at a Committee meeting, as requested by the Chairman of 
the Committee. 
Independent Professional Advisers 
The Directors are able to bring necessary matters to the attention of the Board so that the appropriate professional advisers can be 
briefed and authorized to provide the required independent advice. However, all Directors can, if they feel it necessary, take 
independent professional advice in furtherance of their duties, at the Company’s expense. 
Share Capital 
The share capital details are provided in the Directors’ Report on page 35. 
Financial Reporting 
The financial position of the Group is discussed in the Chairman’s Statement, Chief Executive’s Review and the Directors’ Report, 
giving a balanced and understandable assessment of the Company’s position and prospects. 
After reviewing current performance and plans, and making enquiries considered appropriate, the Directors are satisfied that at the 
time of approving the Financial Statements adequate resources are available to the Group to enable it to continue in business for the 
foreseeable future. For this reason the Directors believe it is appropriate to adopt the going concern basis in preparing the financial 
statements. 
Conflicts of Interest 
The Company has put in place procedures for the disclosure and review of any conflicts or potential conflicts of interest which the 
Directors may have and for the authorization of such conflict matters by the Board. In deciding whether to authorize a conflict, or 
potential conflict, the Directors have regard to their general duties under the Companies Act 2006. The authorization of any conflict 
matter, and the terms of authorization, may be reviewed at any time and are reviewed formally by the Group on an annual basis. There 
have been no conflicts of interest in the year. 
Health and Safety  
The Group takes the health and safety of its employees, business partners, contractors and any visitors to Group premises seriously. 
During the year the Group changed insurance broker from Henderson Risk Management to Marsh and they are now providing advice 
on health and safety matters. The Group has a health and safety committee and it held meetings at its UK sites to consider health and 
safety issues. The Committee reviews new relevant and appropriate legislation and regulations governing the workplace and responds 
to feedback from employees on any particular items in their division or building. The Company Secretary is Chairman of the Committee 
which meets on a quarterly basis.  
Internal Controls/Risk Management 
The Board has overall responsibility for ensuring that the system of internal control is effective. This covers all material controls 
including financial, operational, compliance and risk management systems. This system is intended to manage rather than eliminate 
the risk of failure to achieve business objectives, and provides only reasonable and not absolute assurances against material 
misstatement or loss. 
The Directors reviewed the existing risk management processes within the operating businesses to document and report on significant 
areas of business risks and their controls and that the process accords with the Turnbull Guidance. There is an on-going process for 
the effective identification, evaluation and management of significant risks faced by the Group. 
  41 
This process was in place throughout the year and as at the date of approval of the Annual Report and Financial Statements. Under 
this process the Board receives a detailed report outlining all the main risks associated with both the Technology and Pure businesses 
and the report is reviewed thoroughly to consider if any necessary action is required to address these risks. If the Board concludes 
that action is required, it is given regular updates on progress and is also made aware of any new risks that are identified as an on-
going process continues throughout each year.  
Executive members of the Board have day to day involvement in all aspects of the business and attend monthly 
management/divisional meetings at which both financial and operational performance against targets are reviewed. Any items found 
during the monthly review which do not meet previously agreed targets are discussed in order to ensure that any corrective actions are 
implemented.  
A comprehensive budget is presented for the forthcoming year and approved by the Board. Expenditure is controlled against  
formal authorization limits. Major items of capital and revenue expenditure and all treasury matters are reserved for members of the 
Board alone. 
The Board and the Audit Committee have considered the need for an Internal Auditor, and, after taking into account the size of the 
Group, have concluded that at this stage there is no requirement.  
Compliance Statement  
The Listing Rules require the Board to report on compliance with the provisions of the Code throughout the period. The Group has 
complied throughout the year ended 30 April 2012 with the provisions set out in the Code, with the exception of the requirement to 
appoint a nominations committee. As the Board is small, a Nominations Committee has not been appointed. All nominations to the 
Board will be considered by the full Board and a careful recruitment process is undertaken with assistance from external recruitment 
firms. In the recent appointment of Gilles Delfassy as Non-Executive director, the Chairman, CEO, CFO, Non-Executive directors and 
some members of the EMB were involved in the interview process along with external recruitment advice from Russell Reynolds.  
The Board are aware that both Ian Pearson and David Hurst-Brown have been Non-Executive Directors for more than nine years and 
that, in accordance with the Code, they will be submitting themselves for re-election at the Annual General Meeting. The Board has 
carefully considered their roles in the Group and believe that they are Independent Directors.  
The Board appointed David Anderson in 2011 as a Non-Executive Director and he is the Chairman of the Audit Committee and on 1 
June 2012 Gilles Delfassy became a Non-Executive Director and he will be taking on roles in the Remuneration and Audit Committee. 
The Group will continue to review the composition of the Board. 42 
Corporate Social Responsibility Statements 
Corporate Social Responsibility  
The Group recognizes that it has responsibilities to all stakeholders which include the interests of employees and their families; the 
need to foster the Group’s business relationships with partners, customers, suppliers and others and the impact of the Group’s 
operations on the local communities and the surrounding environment where it operates. Employees are highly regarded and valued, 
and their employment and other rights are respected. The Group is committed to the important principle of equal opportunity which is 
reflected in the Group’s recruitment, graduate recruitment, disciplinary and grievance policies. The Group is dedicated to supplying 
products of top quality to meet its customers’ requirements in a manner that is consistent with high environmental and ethical 
standards. The Group makes a contributions to local communities charities and communities in the areas which it operates its 
business. 
Relations with Shareholders  
The Group actively encourages open communications with shareholders. Principally through the Board, the Group endeavours to 
establish and maintain healthy relationships with its institutional shareholders by holding regular meetings throughout the year, 
particularly after the announcement of full and interim results. Shareholders can register to receive the Group’s press releases via the 
internet and any queries from individual shareholders are answered promptly by a nominated person.  
The Group is involved in a weekly dialogue with private shareholders, the comments and concerns from these shareholders who 
participate in this forum are circulated to management within the Group at the end of each week.  
The Group gives shareholders at least 21 days’ notice of the AGM. At the AGM, the Directors make a full presentation to shareholders 
to explain recent and future developments in the business, followed by an open question and answer session which provides 
shareholders with the opportunity to ask Directors and senior employees questions about the business. The Group prepares separate 
resolutions on each substantially separate issue and a schedule of proxy votes cast is made available for inspection at the conclusion 
of proceedings. The AGM is held at the Group’s headquarters in Kings Langley where shareholders can visit demonstration rooms 
displaying the Group’s technology in Group or partners’ products and Pure products with senior divisional employees available to give 
in-depth detail of the Group’s technologies and products. The Board makes itself accessible to meet with shareholders on an informal 
basis. 
The Non-Executive Directors have access to independent feedback from shareholders after results presentations which, supported  
by periodic attendance at analyst and shareholder presentations, provides them with an understanding of the views of major 
shareholders. The Senior Non-Executive Director is available for dialogue with major shareholders if required. 
Consulting with Employees  
The Group understands and appreciates the importance of effective communication with its employees worldwide. Where there are 
matters arising in the Group which could impact staff there is an appropriate consultation process. This is mainly achieved through 
monthly divisional meetings where employee-related items are initially discussed. Divisional Vice-Presidents and/or General Managers 
will in turn consult their employees and feedback any constructive responses before the Group proceeds in making decisions. The 
Group is re-developing its Headquarters in Kings Langley to create a state of the art building providing substantial improvements in 
the working environment for employees and the Group will continue to have a dialogue with employees to ensure their views and 
observations are taken into consideration in the re-development process. 
Environmental Statement 
The Board understands and recognizes the increasing importance of environmental issues, although it has limited direct impact on the 
environment since it is not involved in heavy industry or any direct manufacturing activity. Group premises are offices, with the main 
activity in the Group being the development of hardware and software designs by employees working on computers, involving neither 
the use of hazardous substances or complex waste emissions. 
The Group is redeveloping its Head Office facilities in Kings Langley and the buildings are being designed along the principles of 
sustainable design and will exceed the building regulations requirements for buildings of this nature; the aspiration is for the building to 
achieve a BREEAM rating of ‘Excellent’. In addition to reducing the building’s energy consumption a sustainable approach has been 
adopted when approaching other issues which will contribute towards a truly sustainable building. Such issues include the selection of 
materials; construction technologies; and the operation, management and maintenance of the completed building. The main methods 
by which a fully sustainable building with the aspired BREEAM rating of Excellent will be achieved are: 
• Introducing the sustainable aspects of the construction process at an early stage of the design and collaborating as a team to 
achieve the sustainability goals.  
• Considered and intelligent design of fenestration. The main emphasis in the design and specification of the glazing and solar 
shading devices will be to reduce operational energy usage in terms of heat loss and solar gain whilst maximizing levels of daylight 
within the office space, thus reducing reliance on artificial lighting.  
• The provision of facilities such as secure bicycle storage and changing facilities to encourage staff to use sustainable modes of 
transport.  
• Water saving technologies (such as flow restrictors, low flow rate water fittings, etc.) will be applied to the building to minimize 
potable water demand and to achieve further CO2 emissions reductions while saving a precious natural resource.  
• Selection of construction materials and technologies that minimize site wastage.   43 
• Using locally sourced materials where possible.  
• Responsibly sourcing materials used in structural and non-structural elements. Third party certification will be required to show that 
the timber has come from a sustainability managed source e.g. Forest Stewardship Council (FSC).  
• Using the Green Guide to Specification to ensure that where possible materials have ‘A’ rating.  
• Recycling construction waste using off site sorting including a dedicated space for recyclable materials on site.  
• The provision of dedicated recyclable waste storage facilities.  
• Aiming to improve the site’s ecological impact through considered landscaping treatment.  
• The provision of an area of brown roof to encourage and increase the site’s levels of biodiversity.  
• Incorporating SUDS (Sustainable Urban Drainage) such as permeable paving on the surface car parks and water attenuation to 
control surface water run-off and minimize water course pollution.  
The Group continues its promotion and support of practices for the use of resources in an environmentally friendly manner. The Group 
has energy saving measures in place for recycling components, such as printed circuit boards, toner cartridges, surplus packaging 
and paper. The Group discourages company vehicles with only a small number of vehicles throughout the Group.  
Pure remains committed to ethical and environmentally sustainable design and manufacture as encapsulated within EcoPlus 
(www.Pure.com/ecoplus). Pure recognises that its main environmental impact comes about through the products themselves in 
manufacture, transport and predominantly in use by consumers, and so it continues to reduce the power consumption of its products, 
with a programme in place to exceed the requirements of the tightened Energy-Using Products (EuP) Directive which comes into place 
in January 2013. 
Pure has made particular strides with reduction in the power of internet radio with the introduction of ONE Flow – the first internet radio 
to meet the stringent requirements of the EST specification for digital radio. In total, Pure now has fifteen EST accredited radios, with 
more to come. During the peak trading period of 2010, Pure’s “Make a Difference” trade and consumer campaign promoted the sale of 
these EST recommended radios.  
Pure have met their obligations under the EC Directive on Batteries and Accumulators and Waste Batteries and Accumulators 
(2006/66/EC) through their membership of the compliance scheme eBatt. 
With respect to the Group’s sub-contract manufacturing activities, all facilities are regularly SEDEX audited to ensure that good 
employment standards and practices are in place, and the Group has taken the necessary action to comply with the provisions of the 
Use of Certain Hazardous Substances in Electrical Equipment Regulations 2005 (RoHS) and Waste Electrical and Electronic 
Equipment (WEEE). The Group is a member of the compliance scheme REPIC to meet our obligations as a producer of WEEE and are 
members of the Distributor Takeback Scheme run by Valpak to meet our obligations as direct sellers. The Group complies with EC 
Regulation on chemicals and their safe use (EC 1907/2006), known as Registration, Evaluation, Authorisation and Restriction of 
Chemical substances (REACH). The Group also complies with The Energy Using Products Directive (EuP) 2005/32/EC which sets out 
the minimum requirements for eco-design for energy using products.  
The Group continues to provide information to shareholders electronically and make documents available through the website rather 
than via paper copies. The Group can report that with support from shareholders less than 1% of shareholders now receive paper 
copies, thereby providing significant environmental and cost benefits. The Group has a Ride 2 Work scheme for employees which 
provides benefits to the environment.  
Graduate Recruitment Programme 
The Group runs a Graduate Recruitment Programme (GRP) with universities and colleges throughout the UK having developed strong 
relationships with a number of universities including the University of Southampton, Imperial College of London, the University of Bristol 
and the University of Manchester. We sponsor PhD studentships, undergraduate and Masters of Science projects as well as running 
an active recruitment calendar at our top universities. As a direct result of our GRP we have had 40 undergraduates on internship 
during the year. In 2012/13 we have a much higher target for the GRP and will continue to expand the number of universities and 
colleges who can participate with placements and/or internship, as well as graduate recruitment. We have linked up with universities 
which reflect our technical skillset and are supporting and developing these into centres of excellence for students in line with our 
intellectual property activities around the Group. One of our key objectives is to encourage academic institutions in the UK to support 
the research requirements of UK industry. In addition to this, we are also building collaborations with other European universities 
outside of the UK. 
In 2012 the Group will sponsor the EPSRC UK ICT Pioneers Event which was open to all second and third year PhD students in the UK. 
The Event was created to showcase and reward research with exploitation potential in the UK with cash prizes available. The Group is 
increasingly working closer with funding bodies such as EPSRC to support and contribute to research in the UK.   44 
Scholarships, Sponsorships and Apprenticeships 
The Group offers a wide range of other incentives to young people varying from the sponsorship of electronic courses at local schools; 
giving scholarship awards to students at University to promote career opportunities at our Group and financial awards to successful 
internships with the intention that the students come to work for the Group in the future. The Group continues to run an apprenticeship 
programme for 16 year olds, and also invites around 20 young people annually for structured work experience to learn more about and 
experience some of the careers available in our sector. The Group is in the process of building regional hubs at its 4 UK sites to 
promote electronics to the school age population. 
Charitable work in the Community 
The Group gives charitable donations both locally and nationally. Every year employees are consulted to ensure that the donations 
given by the Group represent all the interests and locations where employees are based. A list of charities which are selected by 
the Group and employees of the Group are asked which percentage of the Group charitable donation pot is to go to each of the 
charities. If employees raise money for a charity on the Group selected charity list the Group will double the amount of money raised 
by the employee.  
  45 
Remuneration Report  
Remuneration Committee 
The Remuneration Committee (‘Committee’) advises and makes recommendations to the Board on an appropriate remuneration policy 
and carries out an annual remuneration review within the agreed terms of reference of the Remuneration Committee which are 
available on the Group’s website at www.imgtec.com. During the year the members of the Committee have been Ian Pearson 
(Chairman), David Hurst-Brown and David Anderson. In addition, the Group has recently appointed a new Non-Executive Director, 
Gilles Delfassy and he joins the Remuneration Committee. In the forthcoming months it is the intention of the Group to carry out a 
review of the composition of all its sub-committees. 
The Committee is responsible for determining and agreeing with the Board the remuneration packages of each of the Executive 
Directors. This includes basic salary, annual bonus, level of awards under the Group’s share incentive arrangements (‘Awards’) and 
the terms of any performance conditions to apply to the exercise of such rights, pension rights, determining their terms and conditions 
of service, and any compensation payments and to ensure that such remuneration levels are competitive, appropriate and acceptable.  
During the year Olswang provided legal services in relation to share incentive plans, Matthew Arnold Baldwin provided general 
employment advice and the Group’s Independent Financial Advisor, JLT (formerly HACL) advised on pension matters. Towers Watson 
furnished the Committee with data of executive packages of other FTSE 250 companies.  
The remuneration of Ian Pearson, David Hurst-Brown and David Anderson is established by the Executive Directors of the Board.  
The Committee also has discussions with the Board in relation to the Board’s annual report to shareholders on the Group’s policy on 
the remuneration of Executive Directors and in particular the Directors’ Remuneration Report, as required by the Companies Act 2006, 
the Code and the Listing Rules of the Financial Services Authority. No Board member is involved in deciding his own remuneration 
package.  
Remuneration Policy 
The Committee has given full consideration to the Principles of Good Governance as set out in the Code with reference to Directors’ 
remuneration. The main objectives of the policy are to ensure that pay and benefits packages are sufficiently competitive to attract, 
develop and retain high calibre executives. The Committee will continue in the future to ensure that a competitive and well-balanced 
package is maintained. It also seeks to align individual reward and incentives with the performance of the Group and, hence, with the 
interests of the shareholders. When carrying out its role the Committee will consider corporate performance on environmental, social 
and corporate governance issues. In determining Directors’ remuneration for the year the Committee took into consideration the pay 
and conditions of employees of the Group. 
Annual Remuneration Review 
During the year the Committee carried out an annual review of the remuneration packages of the Executive Directors. To assist in this 
process the Committee received independent advice from Towers Watson on executive remuneration for companies of the FTSE250 
as a whole and to those companies in the FTSE 250 with revenues in the range of £100m-£200m. The Committee believes it is 
appropriate to benchmark and be aware of the remuneration of executives holding similar posts generally, and in our specific sector, 
including international competitors. However the Committee considers the success and the significant growth of the business to be the 
principal factors in assessing and determining the appropriate remuneration of its Executives.  
Until the past 2 years when the business began to achieve sustained profitability the Committee made recommendations of minimal 
salary increases and even salary reductions to keep a tight control of costs. In the past year the Group has continued to deliver strong 
growth in revenue and profit and headcount across the business has increased by 20%. More recently therefore the Committee have 
been trying to bring the Executive salaries more in line with what it regards as appropriate for a Group of its size and profitability. 
Directors’ Remuneration 
The main elements of the Executive Directors remuneration are:  
Basic salary 
To review and determine the specific levels of basic salary, the Committee draws on a wide range of relevant data, market conditions, 
as well as Group and individual performance.  
Share incentives 
The Committee aims to ensure that Executives and senior employees are fairly rewarded for their contribution to the success of the 
Group. The Group is currently operating an Employee Share Plan (ESP) and a Save As You Earn (‘SAYE’) plan, both of which were 
approved by shareholders at the AGM in 2006. The Committee continues to believe that appropriate share incentives provide the best 
form of long term incentive needed to motivate and retain employees and to encourage employee share ownership. At the AGM in 
2009, the Group made changes to the ESP to enable it to make ESP awards more tax-efficient and also to make share option grants 
under a Company Share Option Plan in order to give it increased flexibility in the type of share incentives it may award to Group 
employees. In October 2011 the Group enabled all employees holding the share awards made in 2008 to change them from restricted 
discretionary share awards to nil cost share options allowing employees five years to exercise the option from the date of vesting. This 
action was taken in recognition of the extremely difficult economic environment and given the volatility in the worldwide markets which 
had adversely affected share prices and to encourage retention of awards beyond the first vesting date. There are a number of share 
options outstanding under the Group’s old schemes, including approved and unapproved key employee schemes, an Enterprise 
Management Incentive (EMI) scheme and a Long-Term Incentive Plan (LTIP) scheme.   46 
The discretionary Awards under the ESP have performance criteria. The awards under the ESP in 2008 are related to the share price 
relative to the increase in the FTSE All Share Index and growth in gross profit over a three year period. The awards under the ESP in 
2009 have a performance condition related to the growth in the Group’s share price over a three year period.  
In December 2009 the Chief Executive Officer was awarded a specific share award which the Board believed was necessary for 
retention and to provide appropriate motivation. This award is over a five year period. The Group consulted major shareholders before 
making this award. This share award, made under the provisions of the Listing Rules 9.4.2.2, is for 2,250,000 shares and, subject to 
the performance conditions (see page 49), will vest in three tranches; 750,000 shares after three years, 750,000 after four years and 
750,000 after five years. 
In October 2011 the Chief Financial Officer was awarded 50,000 nil cost share options as part of his employment offer when joining the 
Group (see page 49).  
The discretionary options that were granted before the adoption of the Employee Share Plan have performance criteria based on the 
achievement of targets in the market price of Imagination Technologies Group plc shares, and those options issued to Directors have 
the performance conditions attached to them as set out on page 48. The SAYE scheme does not have performance conditions. 
Discretionary options were granted at market value with SAYE options issued at a 20% discount to market value. 
Cash bonus 
The Group has an annual cash bonus plan for key Executives. Awards under the annual bonus plan are split into two portions, a 
portion that is discretionary based on performance and a portion that relates to the achievement of budgeted profit.  
Pension policy 
The Group does not run its own pension scheme and Executive Directors are eligible to become members of the Group Personal 
Pension Plan, which is a defined contribution scheme. There are no special arrangements for Executive Directors and the same 
employer contribution of 7.5% of executive basic salary applies. A Pension Salary Sacrifice scheme is in place for all members of the 
pension scheme, including Executive Directors and this has impacted the amounts stated in Directors’ Emoluments on page 47.  
Service contracts 
Geoff Shingles and Hossein Yassaie have on-going service contracts dated 31 March 1998. Richard Smith has an on-going service 
contract dated 3 May 2011. The Executive Director’s service contracts may be terminated by either party on six months’ notice. The 
Committee regards the notice period in these contracts as being appropriate. In the event of termination of an Executive Director’s 
service contract there are no specific compensation entitlement provisions in the contracts with respect to termination, other than the 
notice period.  
Remuneration policy for Non-Executive Directors 
The Non-Executive Directors’ remuneration consists of fees for their services in connection with Board and Committee meetings and 
where appropriate for devoting additional time and expertise for the benefit of the Group. Non-Executive Directors have letters of 
appointment. Ian Pearson’s, David Hurst-Brown’s and David Anderson’s letters are dated respectively 14 April 1998, 4 August 2000 
and 25 November 2010. Each Non-Executive Director will be re-elected annually to comply with the provisions of the Code. Ian 
Pearson and David Hurst-Brown will seek re-election at this year’s AGM since they have been Non-Executive Directors for more than 
nine years and under the Combined Code a Non-Executive Director is required to be re-elected annually if he has served the board for 
more than nine years.  
During the year the Executive Board carried out a review of the fees of the Non-Executive Directors and obtained independent advice 
from Towers Watson on non-executive remuneration for companies of the FTSE250 as a whole and to those companies in the FTSE 
250 with revenues in the range of £100m-£200m. After careful consideration the Executive Board decided it was necessary to increase 
the basic fees of all Non-Executive Directors and to introduce a fee to those Non-Executive Directors who hold the position of 
Chairman of a Committee.  
Non-Executive Directors are not eligible for pension scheme membership and do not participate in any of the Group’s annual cash 
bonus or other share incentive schemes. The remuneration of Non-Executive Directors is determined by the Executive Directors of the 
Board and no element of their fees is performance-related. 
Other directorships 
Any other directorships of the Non-Executive Directors are set out on pages 31 to 32 with the directorships of Geoff Shingles, who 
carries out his Executive duties with the Group on a part time basis. The Board is satisfied that these directorships do not interfere with 
the performance of Directors’ duties for the Group.  47 
Total shareholders’ return 
 
 
In the total shareholder return analysis the TechMark All-Share Index has been chosen to compare the performance of the Company’s 
share price against an index of comparable companies. 
The following information has been audited: 
Directors’ Emoluments 
The following table is intended to bring together the value of the various emoluments of remuneration received by each Director during 
the year. 
 
  Salary   Benefits Total Total Pension Pension 
and fees Bonus in kind 2012 2011 2012 2011 
£’000 £’000 £’000 £’000 £’000 £’000 £’000 
Executive Directors 
 G S Shingles 90 – 2 92 92 – – 
 H Yassaie 352 150 1 503 301 43 36 
 R A B Smith 193 – 1 194  –  16 – 
 T Selby (Resigned) 32 – – 32 104 8 133 
 
Non-Executive Directors 
 I R Pearson 44 – – 44 30 – – 
 D A Hurst-Brown 39 – – 39 30 – – 
 D Anderson 44 – – 44 10 – – 
Total 794 150 4 948 567 67 169 
 
Hossein Yassaie received a cash bonus of £150,000. Part of this amount was discretionary based on performance and the other 
portion was based on the Group achieving profit to budget. Richard Smith was not eligible to receive a cash bonus. 
Both Hossein Yassaie and Richard Smith participate in the Group’s Pension Salary Sacrifice Scheme which is offered to all employees. 
Trevor Selby also participated.  48 
Directors’ Share Incentives 
The following table sets out the share-related incentives the Directors have in the shares of Imagination Technologies Group plc. 
 
  Balance at Lapsed Exercised Reclassified Balance at  Date from 
  1 May    /Granted 30 April Exercise which first 
 Grant Date 2011    2012 Price exercisable Expiry date 
G S Shingles *Sep-2008 8,115 – (8115) –  0 55.6p Nov-2011 May-2012 
 **Oct-2008 131,250 (131,250****) – – 0 – Oct-2011 Nov- 2011 
 *Oct-2009 2,298 – – –  2,298 139p Dec-2012 June-2013 
 *Oct-2010 495 – – – 495 305.2p Dec-2013 Jun-2014 
 ****Oct-2011 – – – 131,250 131,250 – Oct-2011 Oct-2016 
 *Nov-2011 – – – 1,179 1,179 366.2p Dec-2014 June-2015 
 
H Yassaie *Sep-2008 8,115 – (8,115) – 0 55.6p Nov-2011 May-2012 
 **Oct-2008 1,029,000 (1,029,000****) – – 0 – Oct-2011 Nov-2011 
 *Oct-2009 2,298 – –  2,298 139p Dec-2012 June-2013 
 ***Dec-2009  2,250,000 – –  2,250,000 – Dec-2012 Dec-2014 
 *Oct 2010 495 – – – 495 305.2p Dec-2013 June-2014 
 ****Oct-2011 – – (1,029,000) 1,029,000 0 – Oct-2011 Oct-2016 
 *Nov-2011 – – – 1,179 1,179 366.2p Dec-2014 June-2015 
 
R A B Smith **Oct-2011 – – – 50,000 50,000 – Oct-2014 Oct- 2019 
 *Nov-2011 – – – 2,457 2,457 366.2p Dec-2014 Jun-2015 
Total  3,432,066 (1,160,250) (1,045,230) 1,215,065 2,441,651    
 
As at 18 June 2012 there had been no changes in the balance of share options or share awards outstanding. 
 
* Options issued under the Savings Related Share Option Scheme (SAYE). 
** Awards made under the Employee Share Plan (ESP). 
*** Performance Share Awards (PSA) made to CEO.  
**** Nil Cost Options under the Employee Share Plan (Reclassified in October 2011 from ESP Awards). 
Note - The Total Balance at 1 May 2011 excludes the share incentives held by Trevor Selby as at that date as he resigned during the 
financial period.  
The mid-closing price of the shares on 30 April 2012 was 687.5p and the range during the financial period was 717p to 296.9p. 
 
Executive Directors – Share option and share awards performance conditions: 
 
 LTIP share options are exercisable if the share price growth is at least greater than an annual compound increase of 15% per 
annum in the share price over the four year period following the date of grant and there has been an improvement in the underlying 
financial performance of the Group in the opinion of the Remuneration Committee. 
ESP awards for 2008 have two performance conditions: 
1. Group share price. The first 50% of the Award was subject to the performance of Group shares. It was dependent on the 
percentage growth in the value of a share in the Group compared to the percentage growth of the FTSE All Share Index over the three 
year period commencing on the date of grant of the Award. If the performance of a share in the Group against the Index was 150% 
then all 50% of the Award would vest, if the performance of a share in the Group against the Index was between 125% and 150% of 
the Index then pro-rata on a straight line basis between 25% and 50% would vest, and if the performance of a share in the Group 
against the Index was below 125% of the Index then there is no Award; and  
2. Gross Profit. The second 50% of the Award is calculated by reference to gross profit. Vesting is calculated by reference to the gross 
profit generated by the Group as derived from the Group’s audited report and accounts prepared on a consolidated basis ("Gross 
Profit"). The Gross Profit will be measured over the three financial periods commencing 1 May 2008 (the "Performance Period"). The 
growth in Gross Profit will be measured for each financial period against the previous financial period and then averaged at the end of 
the Performance Period. In the case of the first financial period in the Performance Period, the Gross Profit for that year will be 
compared to the Gross Profit for the period to 30 April 2008. The following shows the vesting of the share awards; If the average 
growth in Gross Profit over the performance period is 15% then 40% of the share award will vest, if the average growth in Gross Profit 
over the performance period is 19% then 70% of the share award will vest and if the average growth in Gross Profit over the  49 
performance period is 23% or more then 100% of the share award will vest.  
 Performance Share Award for the CEO award for 2009 has one performance condition related to the annual cumulative growth in 
the Group’s share price over a three, four and five year period from the date of grant. If the annual cumulative growth of the Group’s 
share price is less than 7.5%, no part of the award will vest, if the annual cumulative growth of the Group’s share price is more than 
7.5% and less than 15% the performance target will be satisfied pro-rata on a straight line basis and if the annual cumulative growth of 
the Group’s share price is 15% or more, all 100% will vest. 
 Performance Share Award for the CFO award for 2011 has one performance condition subject to the performance of Group shares. 
It was dependent on the percentage growth in the value of a share in the Group compared to the percentage growth of the FTSE All 
Share Index over the three year period commencing on the date of grant of the Award. If the performance of a share in the Group 
against the Index was 150% then all 50% of the Award would vest, if the performance of a share in the Group against the Index was 
between 125% and 150% of the Index then pro-rata on a straight line basis between 25% and 50% would vest, and if the performance 
of a share in the Group against the Index was below 125% of the Index then there is no Award. 
 SAYE share options do not have any performance conditions. 
Directors’ Share Dealings – Employee share incentive schemes 
The following Directors’ dealings took place during the year.  
Under the Employee Share Plan  
Hossein Yassaie exercised 1,029,000 nil cost shares options (granted in October 2008) on 27 January 2012. The closing market price 
of the shares on this date was 581 pence resulting in a gain of £5,978,490 (2011: 1,209 shares and a gain of £3,325). Of the 1,029,000 
shares that were exercised, 802,000 were sold and 227,000 were retained by Hossein Yassaie.  
Under the SAYE Plan 
On 19 March 2012, Hossein Yassaie exercised a share option over 8,115 shares granted to him in September 2008 at 55.6 pence. The 
closing market price of the shares on this date was 690.5 pence resulting in a gain of £51,522 (2011: no shares and £Nil gain). He 
retained the 8,115 shares. 
On 8 November 2011, Geoff Shingles exercised a share option over 8,115 shares granted to him in September 2008 at 55.6 pence. 
The closing market price of the shares on this date was 470 pence resulting in a gain of £33,629 (2011: no shares and £Nil gain). He 
retained the 8,115 shares. 
Under the Long-Term Incentive Plan  
During the year Hossein Yassaie did not exercise any share options under this scheme (2011: 500,000 shares and £1,385,000 gain). 
Directors’ Interests 
Interests of the Directors in the shares of Imagination Technologies Group plc were as follows: 
 
Ordinary shares of 10p beneficially owned at 30 April 2012 2011 
G S Shingles 116,133 141,133 
H Yassaie 813,947 573,832 
R A B Smith 1,113 – 
I R Pearson 31,622 35,122 
D A Hurst-Brown 50,000 70,000 
D Anderson 5,675 3,775 
 
As at 18 June 2012 there had been no changes in the above interests.  
 
This report was approved by the Board on 18 June 2012 and was signed on its behalf by: 
 
 
 
 
 
I R Pearson 
Chairman of the Remuneration Committee  50 
Independent Auditors’ Report to the Members 
of Imagination Technologies Group plc 
We have audited the financial statements of Imagination Technologies Group plc for the year ended 30 April 2012 set out on pages 51 
to 85. 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 EU. The financial reporting framework that has been 
applied in the preparation of the Parent Company financial statements is applicable law and UK Accounting Standards (UK 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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to 
anyone other than the Company and the Company’s members, as a body, for our audit work, for this report, or for the opinions we have 
formed. 
Respective responsibilities of directors and auditors  
As explained more fully in the Directors’ Responsibilities Statement set out on page 36, 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 web-site 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 of the Parent Company’s affairs as at 30 April 2012 
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 EU; 
• the Parent Company financial statements have been properly prepared in accordance with UK Generally Accepted Accounting Practice; 
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006; and, as regards the 
Group financial statements, Article 4 of the IAS Regulation. 
Opinion on other matters prescribed by the Companies Act 2006 
In our opinion: 
• the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006; and  
• the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with 
the financial statements.  
Matters on which we are required to report by exception 
We have nothing to report in respect of the following: 
Under the Companies Act 2006 we are required to report to you if, in our opinion: 
• adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received 
from branches not visited by us; or 
• the Parent Company financial statements and the part of the Directors’ Remuneration Report to be audited 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.  
• Under the Listing Rules we are required to review: 
• the Directors’ statement, set out on page 36, in relation to going concern; 
• the part of the Corporate Governance Statement on pages 38 to 41 relating to the Company’s compliance with the nine provisions 
of the UK Corporate Governance Code specified for our review; and 
• certain elements of the report to shareholders by the Board on Directors’ remuneration. 
Tudor Aw (Senior Statutory Auditor) 
for and on behalf of KPMG Audit Plc, Statutory Auditor 
Chartered Accountants 
15 Canada Square, London E14 5GL 
18 June 2012 51 
Consolidated Income Statement  
   Year to  Year to 
   30 April 2012 30 April 2011 
  Notes £’000 £’000 
Revenue 1, 2 127,499  98,045 
Cost of sales  (21,014)  (20,791) 
Gross profit 106,485  77,254 
 
Research and development expenses (59,633)  (44,696) 
Sales and administrative expenses  (23,171)  (16,298) 
Gain on investments  677   –  
Contingent acquisition consideration release  4,009  – 
Total operating expenses  (78,118)  (60,994) 
Operating profit 28,367 16,260 
 
Financial income  292 158 
Financial expenses  (115) (58) 
Net financing income  177 100 
 
Profit before tax 28,544 16,360 
 
Taxation (charge) / credit 5 (8,083) 2,918 
Profit for the financial year attributable to equity holders of the parent  20,461 19,278 
 
 
 
Earnings per share  Basic  6 7.9p 7.7p 
  Diluted   7.4p 7.4p 
 
During this year and the previous period all results arise from continuing operations. 
 
Consolidated Statement of Comprehensive 
Income  
   Year to  Year to 
   30 April 2012 30 April 2011 
  Notes £’000 £’000 
Profit for the financial year attributable to equity holders of the parent  20,461 19,278 
 
Other comprehensive income: 
 
Exchange differences on translation of foreign operations (57) 112 
Change in fair value of assets classified as available for sale 9 866 (300) 
Total other comprehensive income for the financial year, net of income tax  809 (188) 
 
Total comprehensive income for the financial year attributable to  21,270 19,090 
equity holders of the parent 
   52 
Consolidated Statement of Financial 
Position 
  At 30 April At 30 April 
  2012 2011 
 Notes £’000 £’000 
Non-current assets 
Intangible assets 7 43,124 45,088 
Property, plant and equipment 8 25,033 15,723 
Investments 9 12,985 5,717 
Deferred tax 5 18,829 24,868 
   99,971 91,396  
Current assets 
Inventories 10 5,417 6,205 
Trade and other receivables  11 41,068 27,574 
Cash and cash equivalents 12 66,262 49,374 
  112,747 83,153 
 
Total assets 212,718 174,549 
 
Current liabilities 
Trade and other payables  13 (26,378) (17,626) 
Interest bearing loans and borrowings 14 (496) (60) 
  (26,874) (17,686) 
Non-current liabilities 
Other payables 15  – (3,927) 
Interest bearing loans and borrowings 14  (5,031) (5,527) 
Deferred tax liability 5 (3,426) (4,339) 
  (8,457) (13,793) 
Total liabilities (35,331) (31,479) 
Net assets 177,387 143,070 
 
Equity 
Called up share capital 16 26,425 25,815 
Share premium account  16 98,348 97,300 
Other capital reserve 16 1,423 1,423 
Merger reserve  16 2,402 2,402 
Revaluation reserve 16 586 (280) 
Translation reserve 16 176 233 
Retained earnings  16 48,027 16,177 
Total equity attributable to equity holders of the parent  177,387 143,070 
These financial statements were approved by the Board of Directors on 18 June 2012 and were signed on its behalf by: 
 
 
G S Shingles 
Director  53 
Consolidated Statement of Changes  
in Equity 
 Share Share Other capital Merger Revaluation Translation Retained Total 
 capital premium reserve reserve reserve reserve Earnings  
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 
At 1 May 2010 24,345 60,629 1,423 2,402 20 121 (20,154) 68,786 
Profit for the year  – – – – – – 19,278 19,278 
Other comprehensive income for the year:          
Exchange differences on translation  – – – – – 112 – 112 
of foreign operations 
Change in fair value of assets classified – – – – (300) – – (300) 
as available for sale 
Total other comprehensive income – – – – (300) 112 – (188) 
for the year 
Transactions with owners: 
Share based remuneration – – – – – – 5,951 5,951 
Deferred tax credit in respect of – – – – – – 11,183 11,183 
share based incentives 
Acquisition of own shares for – – – – – – (81) (81) 
Employee Benefit Trust 
Issue of new shares 1,470 36,671 – – – – – 38,141 
At 30 April 2011 25,815 97,300 1,423 2,402 (280) 233 16,177 143,070 
 
At 1 May 2011 25,815 97,300 1,423 2,402 (280) 233 16,177 143,070
Profit for the year  – – – – – – 20,461 20,461
Other comprehensive income           
for the year: 
Exchange differences on translation – – – – – (57) – (57) 
of foreign operations 
Change in fair value of assets – – – – 866 – – 866
classified as available for sale 
Total other comprehensive income –  – – – 866 (57) – 809 
for the year: 
Transactions with owners: 
Share based remuneration – – – – – – 10,245 10,245
Tax credit in respect – – – – – – 1,562 1,562 
of share-based incentives 
Acquisition of own shares for – – – – – – (418) (418) 
Employee Benefit Trust 
Issue of new shares 610 1,048 – – – – – 1,658
At 30 April 2012 26,425 98,348 1,423 2,402 586 176 48,027 177,387  54 
Consolidated Statement of Cash Flows 
  Year to  Year to 
  30 April 2012 30 April 2011 
 Note £’000 £’000 
Cash flows from operating activities 
Profit after tax 2 20,461 19,278 
Tax charge / (credit) 5 8,083 (2,918) 
Profit before tax  28,544 16,360 
 
Adjustments for: 
Depreciation and amortisation 3 5,807 3,227 
Net financing income  (177) (100) 
Share-based remuneration  4 10,315 5,951 
Gain on investments 9 (677) – 
Contingent acquisition consideration release  4,009) – 
Exchange difference 3 (219)  (356) 
Operating cash flows before movements in working capital  39,584 25,082 
 
Decrease / (increase) in inventories  788 (1,233) 
Increase in receivables   (13,319) (6,825) 
Increase in payables  2,019 2,187 
Cash generated by operations  29,072 19,211  
Interest paid  (115) (58) 
Taxes paid  (1,224) (61) 
Net cash flows from operating activities  27,733 19,092 
 
Cash flows from investing activities 
Interest received  288 146 
Acquisition of intangible assets  (780) (1,150) 
Acquisition of property, plant and equipment   (8,852) (12,325)  
Acquisition of investments   (2,763) (301)  
Acquisition of subsidiaries   – (27,978) 
Net cash used in investing activities  (12,107) (41,608) 
 
Cash flows from financing activities   
Proceeds from the issue of share capital  1,240 38,052 
Repayment of borrowings   (60) (59) 
Proceeds from loan   – 5,215 
Net cash from financing activities  1,180 43,208 
Net increase in cash and cash equivalents  16,806 20,692 
Effect of exchange rate fluctuation  82 (685) 
 
Cash and cash equivalents at the start of the period  49,374 29,367  
Cash and cash equivalents at the end of the period 12 66,262 49,374  
  55 
Notes to the Consolidated  
Financial Statements  
1 Accounting Policies 
General 
Imagination Technologies Group plc is a company incorporated in the UK. The Group financial statements consolidate those of the 
Company and its subsidiaries (together referred to as the Group).  
Significant accounting policies 
Statement of compliance 
The Group financial statements have been prepared and approved by the Directors in accordance with International Financial 
Reporting Standards as adopted by the EU (Adopted IFRSs). The Company has elected to prepare its Parent Company financial 
statements in accordance with UK GAAP; these are presented on pages 81 to 84. 
Basis of preparation 
The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial 
statements.  
The following new standards and amendments to standards as adopted by the European Union at 30 April 2012 are mandatory for the 
first time for the financial year beginning 1 May 2011: 
• Revised IAS 24 ‘Related party disclosures’ (effective for annual periods beginning on or after 1 January 2011)  
• Amendment to IFRIC 14 ‘Prepayment of a minimum funding requirement’ (effective for annual periods beginning on or after 1 
January 2011) 
• IFRS 7 Financial Instruments: Disclosures – Amendments to disclosures (effective for annual periods beginning on or after 1 
January 2011) 
• IAS 1 Presentation of Financial Statements – Presentation of statement of changes in equity (effective for annual periods beginning 
on or after 1 January 2011) 
IFRS 3 now requires that acquisition expenses are charged to the Group income statement (note 24) and that adjustments to 
contingent consideration are recognized in the Group income statement. With this exception, these accounting standards, 
amendments and interpretations have had no material effect on the results or financial position of the Group disclosed within these 
financial statements. 
Judgements made by the Directors in the application of these accounting policies that have significant effect on the financial 
statements and estimates with a significant risk of material adjustment in the next year are discussed below under ‘Significant 
accounting judgements and estimates’. 
Measurement convention 
The financial statements are prepared on the historical cost basis except that the investments have been stated at fair value in 
accordance with IAS 39. 
Going concern  
After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to 
continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing 
the Annual Report and Financial Statements. 
The Group has adequate financial resources together with long term contracts with a number of customers and suppliers across a 
range of consumer market segments and geographic areas. As a consequence, the Directors believe that the Group is well placed to 
manage its business risks successfully despite the current uncertain economic outlook.  
Further information regarding the Group’s business activities, together with the factors likely to affect its future development, 
performance and position is set out in the Chief Executive’s Review on pages 3 to 9. 
Further information regarding the financial position of the Group, its cash flows, liquidity position and borrowing facilities are described 
in notes 12 and 14. 
In addition, note 21 to the financial statements includes: the Group’s objectives, policies and processes for managing its capital; its 
financial risk management objectives; details of its financial instruments and hedging activities; and its exposures to credit risk and 
liquidity risk. 
Basis of consolidation – Subsidiaries 
Subsidiaries are those entities controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern 
the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights 
that presently are exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the 
consolidated financial statements from the date that control commences until the date that control ceases. 
  56 
Business Combinations 
The Group has applied IFRS 3 Business Combinations (revised 2008) in accounting for business combinations.  
Business combinations are accounted for using the acquisition method at the acquisition date, which is the date on which control is 
transferred to the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefit from its 
activities. In assessing control, the Group takes into consideration potential voting rights that currently are exercisable. The financial 
statements of subsidiaries are included in the consolidated financial statements from the date that control passes. 
The Group measures goodwill as the fair value of the consideration paid or payable less the net fair value of the identifiable assets, 
liabilities assumed and contingent liabilities acquired, all measured as of the acquisition date.  
The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are 
generally recognized in the income statement. Costs related to the acquisition, other than those associated with the issue of equity 
securities, that the Group incurs in connection with a business combination are expensed as incurred.  
See note 24 for the application of the policy to the business combinations that occurred during the period. 
Any contingent consideration payable is recognized at fair value at the acquisition date. If the contingent consideration is classified as 
equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the 
contingent consideration are recognized in the income statement. 
When share-based payment awards (replacement awards) are required to be exchanged for awards held by the acquiree’s 
employees (acquiree’s awards) and relate to past services, then all or a portion of the amount of the acquirer's replacement awards is 
included in measuring the consideration transferred in the business combination. The determination is based on the market-based 
value of the replacement awards compared with the market-based value of the acquiree's awards and the extent to which the 
replacement awards relate to past and/or future services. 
Revenue 
Revenue comprises of; the value of consideration received for sales of licenses to the Group’s technology, royalties arising from the 
resulting sale of licensees’ products embedded with the Group’s technology, development income, support, maintenance, training, 
and the sale of goods.  
The Group follows the principles of IAS 18 Revenue recognition. Revenue associated with the sales of goods is recognized when all of 
the following conditions are satisfied: 
• The Group has transferred the significant risks and rewards of ownership to the buyer 
• The Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control 
over the goods sold;  
• The amount of revenue can be measured reliably; 
• It is probable that the economic benefits associated with the transaction will flow into the Group; and 
• The costs incurred and or to be incurred can be measured reliably.  
Revenue associated with the provision of services is recognized when all of the following conditions are satisfied: 
• The amount of revenue can be measured reliably 
• It is probable that the economic benefits associated with the transaction will flow into the Group; 
• The stage of completion of the transaction as at the end of the reporting period can be measured reliably; and 
• The costs incurred, or to be incurred for the transaction can be measured reliably.  
Therefore, revenue from standard licenses is recognized on delivery to the customer, which is when it is considered the above 
conditions are met. Revenue on licence agreements for products which are either not finished or which need to be modified to meet 
specific customer requirements is recognized on a percentage-of-completion basis over the period from starting development of the 
product to delivery. The percentage-of-completion is measured by monitoring progress compared with the total estimated project 
requirement. Progress is measured by an assessment of performance against key development milestones. 
Revenue associated with rights in license agreements to unspecified current and future products (as opposed to unspecified 
upgrades and enhancements) is recognized under a subscription accounting basis, on a straight-line basis over the term of the 
arrangement. 
Revenue on development work is recognized on a percentage-of-completion basis over the period from the start of the development to 
delivery. Development work is normally invoiced as milestones are achieved. 
Where invoicing milestones on licence or development arrangements are such that the proportion of work performed is greater than 
the proportion of the total contract value which has been invoiced, the Group evaluates whether it has obtained, through its 
performance to date, the right to the un-invoiced consideration and therefore whether revenue should be recognized. In particular it 
considers whether there is sufficient certainty that the invoice milestones will be achieved in the expected timeframe, that the customer 
considers that the Group’s contractual obligations have been, or will be, fulfilled and that only those costs budgeted to be incurred will 
be incurred. Where the Group considers that there is insufficient evidence that it is probable that the economic benefits associated 
with the transaction will flow into the Group, taking into account these criteria, revenue is not recognized until there is sufficient  57 
evidence that it is probable that the economic benefits associated with the transaction will flow into the Group. 
Where an agreement involves several components, the total fee is allocated to individual components based on the fair value of the 
components. The fair value is assessed by reference to prices regularly charged for the components when sold separately, or if this 
cannot be used, then other factors may be considered, such as the excess of similar agreements over the charges of separately 
identifiable components. If the fair value of a component is not determinable, then the total fee is deferred until the fair value is 
determinable, or the component has been delivered to the customer. Where, in effect, two or more components of an agreement are 
linked and fair values cannot be allocated to the individual components, the revenue recognition criteria are applied to the components 
as if they were a single component.  
Revenue for maintenance is recognized on a straight-line basis over the period for which maintenance is contractually agreed with  
the licensee. 
The excess of licence fees, development income and maintenance invoiced over revenue recognized is recorded as deferred income. 
Royalty revenues are earned on the sale by licensees of products containing the Group’s technology. Revenues are recognized as 
they are earned to the extent that the Group has sufficient evidence of sales of products containing the Group’s technology by 
licensees. Notification is generally received in the quarter following the shipment of the customer’s products.  
Revenues from the sale of goods are recognized upon delivery. 
Revenue is accounted for net of VAT, discounts and returns. Returns are recognized at the point at which the Group has adequate 
knowledge that products are likely to be returned by a customer.  
As disclosed above, in accordance with IAS 8 Accounting policies, changes in accounting estimates and errors, the Group makes 
significant estimates in applying its revenue recognition policies. Estimates are made in particular, in regards to the percentage-of-
completion accounting method, which requires that the extent of progress towards completion of contracts may be anticipated with 
reasonable certainty. The use of this method is based on the assumption that, at the outset of licence agreements, there is an 
insignificant risk that customer acceptance will not be obtained. The Group also makes assessments, based on prior experience, of 
the extent to which future milestone receipts represent a probable future economic benefit to the Group. The complexity of the 
estimation process and issues related to the assumptions, risks and uncertainties inherent with the application of the revenue 
recognition policies affect the amounts reported in the financial statements. If different assumptions were used, it is possible that 
different amounts would be reported in the financial statements.  
Research and development costs 
Costs of basic and applied research are written off in the period in which they are incurred. 
Development expenditure is capitalized where it relates to a specific project where technical and commercial feasibility has been 
established, adequate technical, financial and other resources exist to complete the project, the expenditure attributable to the  
project can be measured reliably and future economic benefits are probable. In this case, it is recognized as an intangible asset  
and amortized over its useful economic life. All other development expenditure is recognized as an expense in the period in which  
it is incurred. 
Development costs incurred after the establishment of technical feasibility and overall project and commercial profitability have not 
been significant and, therefore, no costs have been capitalized to date. 
Operating leases 
Rental charges in respect of operating leases are charged to the income statement on a straight line basis over the life of the lease. 
Employee benefits 
The Group contributes to a defined contribution pension plan. Payments are charged to the income statement in the period to which 
they relate. 
Share-based payment transactions 
The share option programmes and the Share Incentive arrangements allow Group employees to acquire shares of the Company. The 
fair value of Share Incentives is recognized as an expense with a corresponding increase in equity. The fair value is measured at grant 
date and spread over the period during which the employee becomes unconditionally entitled to the Share Incentives. The fair value of 
the Share Incentives granted is measured using the Black-Scholes or Monte Carlo Simulation models. The amount recognized as an 
expense is adjusted to reflect the actual number of Share Incentives that vest except where forfeiture is due only to market-based 
performance conditions not meeting the threshold for vesting.  
For the Share Appreciation Rights, cash bonuses are calculated by reference to the value of shares. The fair value of these bonuses is 
recognized as an expense, with a corresponding increase in liabilities over the period in which the employees become unconditionally 
entitled to payment. The liability is remeasured at each reporting date and at settlement date. Any changes in the fair value of the 
liability are recognized as personnel expense in the income statement. 
Transactions of the Group-sponsored Employee Benefit Trust are included in the Group’s consolidated financial statements. In 
particular, the trust’s purchase of shares in the Company is debited directly in equity to retained earnings. 
Taxation 
Tax on the profit or loss for the period comprises current and deferred tax. Tax is recognized in the income statement except to the 
extent that it relates to items recognized directly in equity, in which case it is recognized in equity.   58 
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the 
balance sheet date, and any adjustment to tax payable in respect of previous years.  
Deferred tax is provided using the balance sheet liability method on any temporary differences between the carrying amounts for 
financial reporting purposes and those for taxation purposes. The amount of deferred tax provided is based on the expected manner 
of realisation or settlement of the carrying amount of assets and liabilities using tax rates enacted or substantively enacted at the 
balance sheet date. Temporary differences on goodwill are not provided for as are not deductible for tax purposes. 
A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the 
asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer possible that the related tax benefit will be 
realised. 
Foreign exchange 
Transactions in foreign currencies are translated to the respective functional currencies of Group entities at the rates of exchange 
ruling at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated to the functional 
currency at rates of exchange ruling at the balance sheet date. Exchange gains and losses are taken to the income statement. 
On consolidation, results of foreign subsidiary undertakings are translated at the average rates of exchange for the year. The assets 
and liabilities are translated at rates ruling at the balance sheet date. Exchange differences arising from retranslation have been 
recognized directly in the translation reserve within equity. Presentation currency is GBP. 
Segment reporting 
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur 
expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating 
segments’ operating results are reviewed regularly by the board of directors to make decisions about resources to be allocated to the 
segment and assess its performance, and for which discrete financial information is available. 
Intangible assets  
Software, trademarks and patents are capitalized as intangible assets at cost of acquisition and amortized on a straight line basis over 
their estimated useful economic lives, between 3 and 5 years. The residual values of intangible assets are assumed to be nil. Useful 
economic lives are reviewed on an annual basis. When the Group makes an acquisition, management review the business and assets 
acquired to determine whether any intangible assets should be recognized separately from goodwill. Fair value of the intangible assets 
is assessed assuming a hypothetical market. The Group utilizes the income based approach when reliable future cash flows are 
available. Alternatively, the cost approach or market approach are utilized. 
Trade investments 
Trade investments are classed as available for sale and are stated on the balance sheet at fair value, with any resultant gain or loss 
being recognized directly in equity (in the revaluation reserve), except for impairment losses. When these investments are 
derecognized, the cumulative gain or loss previously recognized directly in equity is recognized in profit or loss. 
The fair value of unquoted investments is made by reference to recent funding rounds or, in the absence of the former, to a discounted 
cash-flow forecast. 
Goodwill 
Purchased goodwill (representing the excess of the fair value of the consideration paid or payable over the net fair value of the 
identifiable assets, liabilities and contingent liabilities acquired) arising on consolidation in respect of acquisitions is capitalized. 
Goodwill is allocated to cash generating units expected to benefit from the acquisition and is not amortised but tested annually for 
impairment. Any impairment is recognized immediately in the income statement and may not be subsequently reversed. Impairment 
testing is based on assets grouped at the lowest possible level at which goodwill is monitored for internal management purposes. 
On disposal of a subsidiary or business, the attributable goodwill is included in the determination of the profit or loss on disposal. 
Goodwill is stated on the balance sheet at cost less any accumulated impairment losses. 
Business combinations that took place prior to 1 April 2004 have not been re-stated and goodwill represents the amount recognized 
under the Group’s previous accounting framework. 
Property, plant and equipment 
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. 
Property, plant and equipment are depreciated to write down their cost using the straight line method to their estimated residual values 
over the period of their estimated useful economic lives. Periodic reviews are made of estimated remaining useful economic lives and 
residual values, and the depreciation rates applied are: 
 Freehold land  No depreciation 
 Freehold buildings 2 per cent on cost 
 Leasehold improvements Equally over the period of the lease 
 Plant and equipment 10 per cent to 33 per cent on cost 
 Motor vehicles 25 per cent on cost  59 
Impairment  
Non-financial assets 
Goodwill has an indefinite useful life, is not subject to amortisation and is tested annually for impairment. Assets that are subject to 
amortisation or depreciation are reviewed for impairment on an annual basis or whenever events or changes in circumstances indicate 
that the carrying amount may not be recoverable. If any such condition exists, the recoverable amount of the asset is estimated in 
order to determine the extent, if any, of the impairment loss. Where the asset does not generate cash flows that are independent from 
other assets, estimates are made of the cashflows of the cash generating unit to which the asset belongs.  
Recoverable amount is the higher of fair value less costs to sell, and value in use. In assessing value in use, estimated future cashflows 
are discounted to their present value using a discount rate appropriate to the specific asset or cash generating unit.  
If the recoverable amount of an asset or cash generating unit is estimated to be less than its carrying amount, the carrying value of the 
asset or cash generating unit is reduced to its recoverable amount. Impairment losses are recognized immediately in the income 
statement.  
In respect of assets other than goodwill, an impairment loss is reversed if there has been a change in the estimates used to determine 
the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the 
carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognized. 
Impairment losses in respect of goodwill are not reversed. 
Financial assets 
A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on 
the estimated future cash flows of that asset. 
An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying 
amount, and the present value of the estimated future cash flows discounted at the original effective interest rate. An impairment loss in 
respect of an available-for-sale financial asset is calculated by reference to its current fair value. 
Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed 
collectively in groups that share similar credit risk characteristics. 
All impairment losses are recognized in the income statement. Any cumulative gain or loss in respect of an available-for-sale financial 
asset recognized previously in equity is transferred to the income statement. 
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was 
recognized. For financial assets measured at amortized cost and available-for-sale financial assets that are debt securities, the 
reversal is recognized in profit or loss. For available-for-sale financial assets that are equity securities, the reversal is recognized 
directly in equity. 
Derivative financial instruments 
Currency exchange contracts are utilised to manage the exchange risk on actual transactions related to accounts receivable, 
denominated in a currency other than the functional currency of the business. These currency exchange contracts do not subject the 
Group to risk from exchange rate movements because the gains and losses on such contracts offset losses and gains, respectively, 
on the transactions being hedged. The currency exchange contracts and related accounts receivable are recorded at fair value at 
each period end. The fair value of forward exchange contracts is determined using quoted forward exchange rates at the balance 
sheet date. The fair value of foreign currency options is based upon valuations performed by management and the respective banks 
holding the currency instruments. All recognised gains and losses resulting from the settlement of the contracts are recorded within 
general and administrative expenses in the income statement. The Group does not enter into currency exchange contracts for the 
purpose of hedging anticipated transactions. 
Inventories 
Inventory is valued at the lower of cost and net realisable value. The cost of inventory is calculated using the FIFO method. Finished 
goods include direct costs and attributable overheads based on the normal level of activity. 
Cash and equivalents 
Cash and cash equivalents comprises cash balances and call deposits with an original maturity of less than or equal to three months. 
Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as a 
component of cash and cash equivalents for the purpose only of the statement of cash flows.  
Loans and receivables 
Loans and receivables are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial 
recognition, loans and receivables are measured at amortized cost using the effective interest method, less any impairment losses. 
Long Term Borrowing 
Long term borrowings are recognized initially at fair value less attributable transaction costs. Subsequent to initial recognition, long 
term borrowings are stated at amortized cost with any difference between cost and redemption value being recognized in the income 
statement over the period of the borrowings on an effective interest basis. 
  60 
Leases 
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating 
leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement 
on a straight-line basis over the period of the lease. 
Significant accounting judgements and estimates 
In applying the Group’s accounting policies described above, management has made the following judgements and estimates that 
have a significant impact on the amounts recognized in the financial statements: 
Revenue Recognition 
The Group has made estimates on the percentage-to-completion for licensing and development work which affect the amount of 
revenue recognized in the period. These estimates involve the Group assessing the estimated resource and time required to complete 
development projects. 
Share based payments 
The fair value of the Share Incentives is measured at grant date and spread over the period during which the employee becomes 
unconditionally entitled to the incentives. The fair value of the Share Incentives is measured using the Black-Scholes or Monte Carlo 
Simulation models which take into account the terms and conditions upon which the award was made. In determining the appropriate 
expense, the Group has made estimates on the likelihood that internal performance targets will be achieved and on the number of 
employees that will be employed on vesting. Details of share-based payments and the assumptions applied are disclosed in note 23.  
Taxation  
A deferred tax asset is recognized only to the extent that it is probable that sufficient taxable profit will be available to utilize the 
temporary difference. The Group has made estimates on the likelihood that future taxable profit will utilize these tax losses. 
Impairment of Goodwill 
The Group determines whether goodwill is impaired at a minimum on an annual basis. This requires an estimation of the value in use of 
the cash generating units to which the goodwill relates. Estimating the value in use requires the Group to make an estimate of the 
expected future cash flows from the cash generating unit that holds the goodwill at a determined discount rate and an appropriate 
growth rate to calculate the present value of those cash flows. Details of assumptions used are set out in note 9. 
Business Combinations 
The Group measures contingent consideration at fair value at the acquisition date and assesses any changes in fair value on an 
annual basis. This requires the Group to make an estimate of the future payables in respect of the contingent consideration. Details of 
the assessment performed in the current year are set out in note 24. 
Valuation of acquired Intangible assets 
When the Group makes an acquisition, management review the business and assets acquired to determine whether any intangible 
assets should be recognized separately from goodwill. If such an asset is identified, then it is valued by discounting the probable 
future cash flows expected to be generated by the asset over the estimated life of the asset, or where future cashflows are less certain, 
by discounting the cost of replicating such intangible asset. Where there is uncertainty over the amount of economic benefit and the 
useful life, this is factored into the calculation. 
Investments 
The Group has stated trade investments at fair value.  
Further details of these investments and the valuation basis are detailed in note 9 and note 19. 
Adopted IFRS not yet applied 
The following accounting standards, amendments and interpretations had been issued but they are not yet effective for the Group and 
have not been early adopted. Their adoption is not expected to have a material effect on the financial statements unless otherwise 
indicated:  
• Presentation of Items of Other Comprehensive Income – Amendments to IAS 1 (effective for annual periods being on or after  
1 July 2012 
2 Segment Reporting 
The Group determines and presents operating segments based on the information that is provided internally to the Board of Directors, 
which is the Group’s chief operating decision maker. The Group is organized into two operating divisions which offer different services 
to different industries and are managed separately: the Technology business and the Pure business. The costs of the corporate head 
office and other costs which are not controlled by the operating divisions are allocated to these divisions. These divisions are the 
operating segments that are reported to the chief operating decision maker and are the Group’s reportable segments. There is no 
inter-segment trading and no significant seasonality in the Group’s operations although there is an increase in trading in the period 
leading up to Christmas.  61 
Principal activities are as follows: 
Technology business – the development of embedded graphics, video, display and multi-threaded processor and multi-standard 
broadcast receiver and connectivity technologies for licensing to semiconductor companies for incorporation into silicon devices. 
Pure business – the development and marketing of consumer products to showcase the technologies of the Technology business and 
to develop new and emerging markets for such technologies. 
Information regarding the operations of each reportable segment is included below. Performance is measured based on operating 
profit. Costs within the technology business do not relate to one or other of the income streams and have not been allocated to either 
the licensing or royalty streams. 
  2012 2011 
  £’000 £’000 
Revenue 
Technology business 
       Licensing  34,392 28,519 
       Royalties  63,849 41,263 
       Total  98,241 69,782 
Pure business  29,258 28,263 
  127,499 98,045 
  
Operating profit / (loss) 
Technology business  32,712 20,039 
Pure business  (4,345) (3,779) 
Segment operating profit  28,367 16,260 
Net financing income   177 100 
Profit before tax 28,544 16,360 
Taxation (8,083) 2,918 
Profit for the financial year 20,461 19,278
Adjusted Profit 
Adjusted profit is used by management to measure the performance of the business year on year by excluding non-recurring items, 
non-cash based share incentive charges and amortisation of intangible assets acquired from acquisitions.  
 
 Year to 30 April 2012 Year to 30 April 2011 
 Notes Technology Pure Total Technology Pure Total 
  £’000 £’000 £’000 £’000 £’000 £’000 
Reported operating profit  32,712 (4,345) 28,367 20,039 (3,779) 16,260  
Share-based incentive costs 4 8,905 1,410 10,315 4,958 993 5,951 
Net gain on investments  (677) – (677) – – – 
Amortisation of intangibles from acquisitions 7 2,669 – 2,669 890 – 890 
Acquisition transaction costs 24 – – – 809 – 809 
Contingent acquisition consideration release 24 (4,009) – (4,009) – – – 
Adjusted operating profit / (loss) 39,600 (2,935) 36,665 26,696 (2,786) 23,910 
Net financing income     177   100 
Adjusted profit before tax 36,842   24,010
  62 
   2012 2011 
  £’000 £’000 
Total assets    
Technology business  117,469 89,897 
Pure business  10,114 10,410 
Total segment assets  127,583 100,307 
Cash and cash equivalents 66,262 49,374 
Deferred tax 18,829 24,868  
Unallocated assets 44 – 
Total assets  212,718 174,549 
 
Total liabilities 
Technology business  25,093 20,745 
Pure business  4,711 5,147 
Total segment liabilities  29,804 25,892 
Unallocated liabilities  5,527 5,587 
Total liabilities  35,331 31,479 
 
Other segment items 
Capital expenditure Technology business 12,021  26,538 
 Pure business 290 503 
  12,311 27,041 
 
Depreciation and amortisation Technology business 5,401 2,921 
 Pure business 378 306 
  5,779 3,227 
 
Revenue is reported by geographical area of sales as follows: 
  2012 2011 
  £’000 £’000 
United Kingdom and Europe 32,707 28,951  
Asia 29,412 20,218 
North America 63,048 46,702 
Rest of the world 2,332 2,174 
   127,499 98,045  
 
Revenue from the largest customer of the Group in the year, which is included in revenue for the Technology division, represents 
approximately £39,648,000 of the Group’s total revenues. No other individual customer represents over 10% of the Group’s revenue. 
All revenue originated materially from United Kingdom and Europe. 
The operating profit, net assets and capital expenditure of the Group materially relate to the United Kingdom and Europe.  63 
3 Expenses 
  2012 2011 
  £’000 £’000 
Operating profit is stated after charging/(crediting): 
 Depreciation and amortisation of owned property, plant and equipment 5,807 3,227 
      and intangible assets  
 Foreign exchange (gain) / loss (219) 873 
      Operating lease rentals: 
    Property 1,456 1,090 
    Other 4,843 3,023 
  
Auditors’ remuneration 
 Audit of these financial statements 24 25 
 Amount received by auditors and their associates in respect of:  
 Audit of financial statements of subsidiaries pursuant to legislation 54 57 
 Other services – tax filing services 2 55 
 80 137 
Amounts paid to the Company’s auditor in respect of services to the Company, other than the audit of the Company’s financial 
statements, have not been disclosed as the information is required instead to be disclosed on a consolidated basis. 
4 Employees   
The average number of persons employed by the Group (including Directors) was:  2012 2011 
Research and Development 743 560 
Production 41 33 
Administration 88 67 
Sales and Marketing 95 65 
 967 725 
The aggregate payroll costs of these persons were: £’000 £’000 
Wages and salaries 36,311 26,704 
Social security costs 3,463 2,654 
Other pension costs 2,536 2,155 
Share-based payment 10,315 5,951 
 52,625 37,464 
 
Details of the share-based payments are set out in note 21.  
Complete information on the share incentives and shares held by Directors is set out in the Remuneration Report on pages 45 to 49.  64 
5 Taxation 
  2012 2011 
  £’000 £’000 
Analysis of tax charge in the year 
Current tax charge 
UK corporation tax 4,540 – 
Foreign tax 1,416 1,356 
Credit from UK R&D tax claim –  (1,295) 
Total current tax charge 5,956 61 
Deferred tax 
Origination and reversal of timing differences 1,721 (2,979) 
Effect of changes in tax rates on opening balances 106 – 
Effect of changes in tax rates on closing balances 795 – 
Benefit from previously unrecognised tax loss  (495) – 
Total deferred tax 2,127 (2,979) 
Total income tax charge / (credit) 8,083 (2,918) 
 
The total tax charge for the year of £8,083,000 (2011: £2,918,000 tax credit) is higher (2011: lower) than the standard rate of 
corporation tax in the UK of 25.8% (2011: 28%). The difference is explained below: 
 
  2012 2011 
  £’000 £’000 
Profit before taxation 28,544 16,360 
Notional tax charge at UK standard rate of 25.8% (2010: 28%) 7,364 4,581 
 
Permanent differences (2,495) (2,958) 
Transfers from / (to) previously unrecognized tax assets 1,973 (7,429) 
Effect of tax rate change 901 940 
Adjustments in respect of prior periods (75) 592 
Withholding tax  1,241 1,356 
Higher taxes on overseas earnings (826) – 
Total tax charge / (credit) 8,083 (2,918) 
 
Tax on items charged to equity:  
Deferred tax charge / (credit) in respect of share based payments 2,978 (11,183)  
Current tax credit (4,540) – 
 
Deferred tax 
The movement on the deferred tax account is as follows: 
  2012 2011 
  £’000 £’000 
At beginning of the period 20,529 11,018 
Adjustment to opening balance (21) – 
Acquisition of subsidiaries – (4,651) 
(Charged) / credited to income statement (2,127) 2,979 
(Charged) / credited to equity (2,978) 11,183 
At end of the period 15,403 20,529 
  65 
An additional £495,000 (2011: £7,429,000) of previously unrecognized tax assets were recognized in the year. Management consider 
the utilisation of the £18,829,000 (2011: £24,868,000) cumulative tax losses to be probable based on assessment of forecasts of future 
taxable profits. The element of the deferred tax charge recorded against equity relates to the reversal of previously recognised 
deferred tax assets which were credited to equity. The reversal of the asset occurs upon the exercise of share based incentives. 
In 2011 a deferred tax liability of £4,651,000 arose on intangible assets acquired as part of the acquisitions of Caustic Graphics, Inc. 
and HelloSoft Inc. This deferred tax liability will reduce as the intangible asset is amortised over its useful life with the balance 
remaining at year end set out above. Further details on the acquisitions are set out in note 24.  
 
  2012 2011 
  £’000 £’000 
Deferred taxation has been presented on the balance sheet as follows: 
Deferred tax asset 18,829 24,868 
Deferred tax liability (3,426) (4,339) 
At end of the period 15,403  20,529  
 
Deferred tax assets and liabilities are only offset where there is a legally enforceable right to offset and there is an intention to settle the 
balance net. 
The major components of deferred tax assets and liabilities at the year-end (without taking into consideration the offsetting of balances 
within the same tax jurisdiction) are as follows: 
  2012 2011 
  £’000 £’000 
Recognized deferred tax assets/(liabilities) 
Tax losses 10,201 11,390 
Share-based payments 10,804 14,532 
Capital allowances (1,847) (1,067) 
Other timing differences 131 13 
Deferred tax liability on gain on investments (460) – 
Acquisition of Intangibles (3,426) (4,339) 
 15,403 20,529 
  2012 2011 
  £’000 £’000 
Unrecognized deferred tax assets 
Deferred tax assets have not been recognized in respect of the following items (reported at the applicable tax rate): 
 
Tax losses 15,978 9,293 
 15,978 9,293 
The balance of £15,978,000 relates to losses in the US (2011: £9,293,000) which expire progressively over the next 15 years. These 
are available for utilization against profit arising in the US in future periods. None of the losses in the current year balance relate to the 
UK (2011: £Nil). 
The 2011 Budget on 23 March 2011 announced that the UK corporation tax rate will reduce to 23% over a period of 4 years from 2011. 
The first reduction in the UK corporation tax rate from 28% to 27% (effective from 1 April 2011) was substantively enacted on 20 July 
2010, and further reductions to 26% (effective from 1 April 2011) and 25% (effective from 1 April 2012) were substantively enacted on 
29 March 2011 and 5 July 2011 respectively. This will reduce the company’s future current tax charge accordingly.  66 
6 Earnings Per Share 
  2012 2011 
  £’000 £’000 
Profit attributable to equity holders of the parent 20,461  19,278 
 
  2012 2011 
  Shares Shares 
  £’000 £’000 
Weighted average number of shares in issue 260,503 250,223 
Effect of dilutive shares: Employee Incentive Schemes  14,205 11,674 
Weighted average number of shares potentially in issue 274,708 261,897 
 
  2012 2011 
Earnings per share Basic 7.9p 7.7p 
 Diluted 7.4p 7.4p 
 
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue to assume conversion 
of all potential dilutive ordinary shares. Details of the schemes considered in arriving at the potentially dilutive ordinary shares are set 
out in note 21. 
 
Adjusted earnings per share  2012 2011 
  £’000 £’000 
Adjusted profit before tax – (see note 2)  36,842 24,010 
Taxation charge*    (8,083) (4,253) 
Adjusted profit attributable to equity holders of the parent 28,759 19,757 
 
  2012 2011 
  Shares Shares 
  £’000 £’000 
Weighted average number of shares in issue 260,503 250,223 
Effect of dilutive shares: Employee Incentive Schemes  14,205 11,674 
Weighted average number of shares potentially in issue 274,708 261,897 
 
Adjusted earnings per share Basic 11.0p 7.9p 
 Diluted 10.5p 7.5p 
 
Adjusted earnings per share is calculated using adjusted profit attributable to equity holders of the parent which is derived from the 
adjusted profit before tax described in note 2. 
*The normalised tax rate for 2011 replaces the tax credit of £2,918,000 with a tax charge of £4,253,000 based on an effective tax rate 
for 2011 of 26%.  67 
7 Goodwill and Other Intangible Assets 
  Intangible assets  Software, patents 
 Goodwill from acquisitions and trademarks Total
 £’000 £’000 £’000 £’000 
Cost 
At 1 May 2010 7,129 – 9,926 17,055 
Additions – – 1,014 1,014 
Acquisition of subsidiaries 27,221 13,348 – 40,569 
At 30 April 2011 34,350 13,348 10,940 58,638 
 
At 1 May 2011 34,350  13,348 10,940 58,638
Additions – – 803 803
Adjustment 820  – – 820
At 30 April 2012 35,170 13,348 11,743 60,261 
  
Amortisation 
At 1 May 2010 3,517 – 8,412 11,929 
Charge for the year – 890 731 1,621 
At 30 April 2011 3,517 890 9,143 13,550 
 
At 1 May 2011 3,517 890 9,143 13,550
Charge for the year – 2,669 918 3,587
At 30 April 2012 3,517 3,559 10,061 17,137 
 
Net book value at 30 April 2010 3,612 – 1,514 5,126 
Net book value at 30 April 2011 30,833 12,458 1,797 45,088 
Net book value at 30 April 2012 31,653 9,789 1,682 43,124 
 
Goodwill was acquired through acquisitions and relates to the Technology business, which is considered to be a single cash-
generating unit. During the period the Group tested its balance of goodwill for impairment in accordance with IAS 36, Impairment of 
assets’. The test was based on a calculation of the recoverable amount based on value in use, using projected cash flows for the 
Technology business.  
The key assumptions in the value in use calculations were: 
Period over which the Directors have projected cashflows – a four year forecast period is used which is based on management 
forecasts of future profits, with an assumed terminal growth rate after 2016 of 2.5% per annum (2011: 2.5%). The terminal growth rate 
is assessed taking into account general economic conditions. 
Forecast revenue growth – the revenue projections are consistent with those used by the Group for financial planning purposes. 
Forecast operating margins – the operating margin projections are consistent with those used by the Group for financial  
planning purposes. 
Discount rate – future cash flows are discounted at a rate of 15% which represents a pre tax rate that reflects the Group’s weighted 
average cost of capital adjusted for the risks specific to the Technology business (2011: 15%). 
The Directors do not believe that any reasonably foreseeable changes to key assumptions would result in an impairment of goodwill, 
such is the margin by which the estimated fair value exceeds the carrying value. 
The £820,000 adjustment made to Goodwill in the current year represents a correction of the Goodwill balance recorded in the 
previous year in relation to the HelloSoft acquisition. Goodwill was increased in the current year to reflect HelloSoft’s pre-acquisition 
deferred income balance which was inadvertently excluded from the fair value of net assets at acquisition date and hence from the 
calculation of Goodwill. The Directors do not consider this to be a material adjustment and therefore have not restated comparative 
balances.  68 
8 Property, Plant and Equipment 
 
 Freehold land  Leasehold Plant and 
 and buildings improvements equipment Total 
 £’000 £’000 £’000 £’000 
Cost 
At 1 May 2010 1,184 2,638 10,701 14,523 
Additions 9,430 470 2,514 12,414 
Acquisition of subsidiaries – – 265 265 
At 30 April 2011 10,614 3,108 13,480 27,202 
 
At 1 May 2011 10,614 3,108 13,480 27,202 
Additions 8,266 264 3,006 11,536 
Disposals – – (6) (6) 
At 30 April 2012 18,880 3,372 16,480 38,732 
 
Depreciation 
At 1 May 2010 112 1,528 8,233 9,873 
Charge for the year 128 209 1,269 1,606 
Disposals – – – – 
At 30 April 2011 240 1,737 9,502 11,479 
 
At 1 May 2011 240 1,737 9,502 11,479
Charge for the year 278 261 1,681 2,220
Disposals
At 30 April 2012  518 1,998 11,183 13,699 
 
Net book value at 30 April 2010 1,072 1,110 2,468 4,650 
Net book value at 30 April 2011 10,374 1,371 3,978 15,723 
Net book value at 30 April 2012 18,362 1,374 5,297 25,033 
 
     2012 2011 
     £’000 £’000 
The net book value of freehold land and buildings comprises: 
 Land    5,072 3,971 
 Buildings    13,290 6,403 
     18,362 10,374 
9 Investment 
     2012 2011 
     £’000 £’000 
Trade investments classified as available for sale    12,985 5,717 
 
The investments relate to the Group’s holdings in Toumaz Holdings, Frontier Silicon, GreenPlug, Audioboo, Orca Systems Inc and  
Blu-Wireless. 
Toumaz Holdings (‘Toumaz’) – During the year the Group increased its holding in Toumaz, a company listed on AIM. The fair value of 
the shares acquired on the date of acquisition was £6,069,000, which generated a gain on investment of £822,000 due to the 
difference in the fair value of the shares received and the consideration given. This gain on investment was recognised in the income 
statement during the year. At the balance sheet date, the Group’s investment in Toumaz was valued at £9,338,000 (2011: £2,459,000) 
by reference to the quoted share price of Toumaz Holdings at the reporting date. The increase in value of £810,000 created as a result 
of the movement in Toumaz’ share price has been recognized as a change in fair value of available for sale investments in the 
Statement of Comprehensive Income. 
Frontier Silicon (‘Frontier’) – As a result of Frontier’s capital structure, the Group’s equity investment in this company remains at £Nil 
(2011: £Nil). The Group also has a Loan Note from Frontier for £795,000 (2011: £795,000) which was reclassified from Loans to  69 
Investments in the previous year. The Loan Note in Frontier Silicon is redeemable in the event of a sale or listing of Frontier, or at the 
discretion of Frontier, or the Loan note holders in Frontier, subject to approval by a majority of the Loan Note holders. The fair value of 
the Loan Note remains at £795,000. 
GreenPlug –The Group’s holding in GreenPlug at the balance sheet date was valued by means of a discounted cashflow forecast 
which supported the value of the Group’s holding at £2,170,000 (2011: £2,116,000). The £54,000 increase in the value of the 
investment due to foreign exchange has been recognized as a change in fair value of available for sale investments in the Statement of 
Comprehensive Income. 
Audioboo – During the year the Group increased its holding in Audioboo by acquiring 21,644 shares for £49,000. Audioboo was 
valued at the balance sheet date at £251,000 (2011: £301,000) by reference to a funding round held in December 2011. The £99,000 
reduction in the value of the Group’s investment as a result of this valuation has been recognised in the income statement during the 
year. 
Orca Systems Inc (‘Orca’) – During the year the Group made an investment of £428,000 in Orca. At the balance sheet date a £2,000 
increase in the value of the investment due to foreign exchange movements resulted in a value of £430,000. The £2,000 increase has 
been recognized as a change in fair value of available for sale investments in the Statement of Comprehensive Income. 
Blu-Wireless – At the balance sheet date the Group’s investment in Blu-Wireless was valued at £Nil (2011: £46,000). The £46,000 
impairment has been recognised in the income statement during the year. 
All gains and impairment charges relating to trade investments classified as available for sale relate to the Technology business.  
10 Inventories 
     2012 2011 
     £’000 £’000 
Raw materials and components  252 359 
Finished goods   5,165 5,846 
 5,417 6,205 
Provisions of £691,000 (2011: £1,009,000) recognized in operating expenses were made against inventories. During the period, 
£487,000 (2011: £1,009,000) of the provision against inventories was utilized for the write-down and write off of inventories. As at 30 
April 2012 the provision for obsolescence of inventories was £541,000 (2011: £337,000). 
Raw materials, consumables and changes in finished goods and work in progress recognized as cost of sales in the period amounted 
to £20,373,000 (2011: £20,135,000).  
11 Trade and Other Receivables 
Trade and other receivables – current assets 
     2012 2011 
     £’000 £’000 
Trade receivables  24,957 13,065 
Prepayments and accrued income  13,638 14,287 
Other receivables 2,473 222 
  41,068 27,574 
 
Provisions for impairment of £Nil (2011: £81,000) recognized in operating expenses were made against receivables. £Nil (2011: 
£6,000) of provisions were utilized by writing down the gross value of receivables. As at 30 April 2012 the provision for impairment of 
trade receivables was £125,000 (2011: £125,000). 
12 Cash and Cash Equivalents 
     2012 2011 
     £’000 £’000 
Cash at bank – short term deposits 63,234 46,550 
Cash at bank – current account 3,028 2,824 
 
Cash and cash equivalents as per Consolidated Statement of Financial Position 66,262 49,374 
 
Cash and cash equivalents as per Consolidated Statement of Cash Flows 66,262 49,374  70 
13 Trade and Other Payables 
     2012 2011 
     £’000 £’000 
Trade payables 5,807 4,330 
Tax and social security 1,585  909 
Other payables 1,234 – 
Accruals and deferred income 15,938 10,564 
Deferred and contingent consideration 1,814 1,823 
 26,378 17,626 
The deferred and contingent consideration is in respect of the acquisition of HelloSoft Inc. and represents an assessment of probable 
future consideration, converted using the period end exchange rate, due within 12 months based on contractual payment dates and 
the achievement of certain revenue and profit targets. The non-current portion of deferred and contingent consideration is set out in 
note 15. 
14 Interest Bearing Loans and Borrowings  
     2012 2011 
     £’000 £’000 
Current liabilities 
Bank Loan 496 60 
 
Non-current liabilities 
Bank Loan 5,031 5,527 
 5,527 5,587 
 
Borrowings to be repaid within 1 year  496 60 
Borrowings to be repaid between 1 and 5 years 5,031 5,470 
Borrowings to be repaid over 5 years 0 57 
 5,527 5,587 
The Group has two loans secured on freehold buildings. One loan has a balance of £312,000 with fixed repayments. The unexpired 
term of the loan is 5 years and the interest rate on the loan floats at 2.0% above base rate. The second loan for £5,215,000 floats at 
1.6% above LIBOR and the unexpired term is 4 years. The Group considers the requirements for long term borrowings by assessing 
the future cash flows of the business. 
15 Other payables 
Other non-current payables 
     2012 2011 
     £’000 £’000 
Deferred and contingent consideration – 3,927  
As explained in note 13, deferred and contingent consideration is in respect of the acquisition of HelloSoft Inc. In 2011 the non-current 
portion of £3,927,000 included deferred consideration retained for a defined period and the non-current portion of the contingent 
consideration. 
16 Capital and Reserves 
Called Up Share Capital 
Authorised Allotted, called up 
and fully paid 
Ordinary shares of 10p each No. £’000 No. £’000 
At 1 May 2011 300,000,000 30,000 258,152,628 25,815 
Issued during period – – 6,093,827 610 
At 30 April 2012  300,000,000 30,000 264,246,455 26,425
 
The rights attached to ordinary shares are as set out in the Directors’ Report.  71 
Share Capital and Share Premium  
The movement on the Share Capital and Share Premium reserve in the period arises from the issue of 6,093,827 ordinary shares fully 
paid pursuant to the terms of various Employee Share Option Schemes and the exercise of warrants. The consideration for the shares 
was £1,658,000. Of this consideration, £1,240,000 was settled in cash and £418,000 relating to shares issued in respect of the 
Employee Benefit Trust settled via inter-company loans within the Group. 
Other Capital Reserve 
The balance on the Other Capital Reserve reflects the value of warrants issued in respect of the acquisition of Ensigma Limited.  
Merger Reserve 
The Merger Reserve arose in the Group reconstruction in 1994 prior to its flotation. 
Revaluation Reserve 
The Revaluation Reserve comprises the cumulative net change in the fair value of the trade investments classified as available for sale 
until the investments are derecognized.  
Translation Reserve 
The Translation Reserve reflects the exchange differences from retranslation of the opening net investments in overseas subsidiaries to 
closing rate and translation of the results for the year from average rates to the closing rate. 
17 Operating Leases  
Non-cancellable operating lease rentals are payable as follows: 
   Land and buildings   Other 
   2012 2011  2012 2011  
  £’000 £’000  £’000 £’000  
Within one year 1,457 704 4,464 2,605 
In two to five years 2,198 2,011 7,450 4,225 
After five years – 1,303 – – 
   4,018 11,914 6,830 
Other operating leases include the rental of software and vehicles. 
18 Capital Commitments  
At 30 April 2012, the Group had contracted for capital commitments of £7,152,000 (2011: £702,000). The increase is due to 
contractual obligations entered into during the year to finish construction work on a new building. The work is due to be completed in 
the year ended 30 April 2013. 
19 Financial Instruments  
Overview 
The Group has exposure to the following risks from its use of financial instruments: 
• Market risk 
• Credit risk 
• Liquidity risk 
This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes 
for measuring and managing risk. 
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. 
Categories of financial instruments 
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement 
and the basis on which income and expenses are recognized in respect of each class of financial assets, financial liability and equity 
instrument are disclosed in note 1 to the Financial Statements. 
   2012 2011 
  Notes £’000 £’000 
Financial assets 
Loans and receivables 
 Trade and other receivables 11 27,430 13,287 
Cash and cash equivalents 12 66,262 49,374 
Available for sale investments 9 12,985 5,717 
Total financial assets  106,677 68,378 
   72 
   2012 2011 
  Notes £’000 £’000 
Financial liabilities 
Bank loan 14 5,527 5,587 
Trade and other payables  13 8,626 5,239 
Total financial liabilities  14,153 10,826 
 
Market Risk 
Market risk is the risk that changes in the market prices, such as foreign currency exchange rates and interest rates, will affect the 
Group’s income or the value of its holdings of financial instruments. The objective of market risk is to manage and control market risk 
exposures within acceptable parameters, whilst optimizing the return on risk. 
a) Foreign currency risk 
The Group transacts licence and development agreements with customers and purchases of products for Pure primarily in US dollars 
and, therefore, the Group’s earnings are exposed to fluctuations in foreign exchange rates. The Group reviews its foreign exchange 
exposure on a regular basis and, if there is a material exposure to exchange rate fluctuations and the Board considers it appropriate, 
the Group will reduce the risk by currency hedging on net receivable/payable balances. Forward contracts will be entered into with the 
objective of matching their maturity with currency receipt. During the period currency contracts amounted to £6,182,000 (2011:£0). As 
at 30 April 2012 the outstanding currency contract amounted to £7,993,000 (2011: £nil).  
The analysis of financial assets and liabilities by foreign currency is as follows: 
 30
 
April 2012  30 April 2011 
 £ $ € Other Total £ $ € Other Total 
Trade receivables 2,033 22,151 621 152 24,957  2,341 10,174 311 239 13,065 
Other receivables 1,467 688 10 308  2,473 222 – – – 222 
Cash and cash equivalents 54,328 7,692 3,355 887 66,262 37,125 10,498 1,191 560 49,374 
Available for sale assets 10,384 2,601 – – 12,985 3,601 2,116 – – 5,717 
Trade payables (3,820) (1,637) (311) (39) (5,807) (1,244) (2,958) (22) (106) (4,330) 
Other payables  (1,873) (566) (11) (369) (2,819) (909) – – – (909) 
Bank loan (5,527) – –  – (5,527) (5,587) – – – (5,587) 
 57,001 30,929 3,664 939 92,524 35,549 19,830 1,480 693  57,552 
 
The Group has a number of overseas business operations and operates in a number of foreign currencies which give rise to 
transactional and translational foreign exchange risk. The most important foreign currency to the Group is the US Dollar. 
Foreign currency sensitivity analysis 
The Group transacts a large proportion of its revenues and costs in US Dollars. Taking all income and expenditure in US Dollars into 
account, management have appraised that for the financial year to 30 April 2011, each additional one cent increase or decrease in the 
US Dollar exchange rate against Sterling would have decreased or increased revenues by circa £615,000 (2011: £446,000) and profit 
by circa £395,000 (2011: £262,000). 
b) Interest rate risk 
The Group’s earnings may be affected by changes in interest rates available on bank deposits. The Group aims to maximize returns 
from funds held on deposit and uses market deposits with major clearing banks accordingly. With the current level of bank deposits, 
the impact of a change in interest rates is not considered material.  73 
In respect of income-earning financial assets and interest bearing financial liabilities, the following table indicates their average 
effective interest rate at the reporting date and the periods in which they mature or, if earlier, reprice. 
   2012    2011 
 Effective < 1 year > 1 year Total Effective < 1 year > 1 year Total 
 interest rate £’000 £’000 £’000  interest rate £’000 £’000 £’000 
Cash and cash equivalents 
Sterling  54,328 – 54,328  37,125 – 37,125 
US Dollars 7,692 – 7,692  10,498 – 10,498 
EU currencies  3,355 – 3,355  1,191 – 1,191 
Yen  64 – 64  118 – 118 
Rupees  171 – 171  151 – 151 
Yuan  17 – 175  35 – 35 
Zloty  98 – 98 
Australian Dollars  537 – 537  256 – 256 
  66,262 – 66,262  49,374  – 49,374 
 
Floating rate 0.0% 3,028 – 3,028 0.0% 2,824 – 2,824 
Fixed rate 0.3% 63,234 – 63,234 0.2% 46,550 – 46,550 
  66,262 – 66,262  49,374 – 49,374 
Bank Loan 
Secured bank loan – Sterling* 2.5% (62) (251) (313) 2.5% (60) (312) (372) 
Secured bank loan – Sterling* 2.4% (435) (4,780) (5,215)  2.4% – (5,215) (5,215) 
  (497) (5,031) (5,528)  (60) (5,527) (5,587) 
 
* At floating rate. See note 14 for details.  
The fixed rate cash deposits were placed with banks throughout the year and earned interest of between 0.06% and 1.08%. Floating 
rate cash earns interest based on LIBID equivalents. 
Short term receivables and payables are not interest bearing with the exception of the short term element of the long term loan.  
The Group has two long term loans. The loan with a balance of £313,000 is repayable over 8 years and incurs interest at a rate of 2.0% 
over base rate. A loan for £5,215,000 was taken out during the prior year. The loan floats at 1.6% above LIBOR and the unexpired term 
is 5 years.  
Interest rate sensitivity analysis  
In the financial year to 30 April 2012, if interest rates had been 100 basis points higher and all other variables were held constant, the 
Group’s profit would have been increased by circa £466,000 (2011: £364,000). Similarly, if interest rates had been 100 basis points 
lower and all other variables were held constant, the Group’s profit would have been decreased by circa £247,000 (2011: £126,000).  
Credit Risk 
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual 
obligations, and arises principally from the Group’s receivables from customers and investment of liquid funds.  
The Group limits its exposure to credit risk by only investing in liquid securities and only with counter parties that have a high  
credit rating.  
Capital Risk 
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximizing the 
return to stakeholders as well as sustaining the future development of the business. In order to maintain or adjust the capital structure, 
the Group may consider the total amount of dividends paid to shareholders, return capital to shareholders, issued new shares or sell 
assets to reduce debt. The Group’s overall strategy remains unchanged from the previous financial year. 
The capital structure of the Group consists of debt, which includes the borrowings disclosed in note 14, cash and cash equivalents 
and equity attributable to the parent, comprising share capital, reserves and retained earnings as disclosed in note 16. The CFO 
regularly monitors the capital risk on behalf of the board.   74 
Trade Receivables 
The exposure to credit risk is mitigated by selling to a diverse range of customers. The Group has implemented policies that require 
appropriate credit checks on potential customers prior to sales taking place. At the balance sheet date there were no significant 
concentrations of credit risk either by customer or by geography. The maximum exposure to credit risk is represented by the carrying 
amount of each financial asset in the balance sheet.  
  Gross Impairment Gross Impairment 
  2012 2012 2011 2011 
Ageing of trade receivables: £’000 £’000 £’000 £’000 
Not past due 19,565 – 10,072 – 
Past due 0-90 days 3,939 – 2,216 – 
Past due greater than 90 days 1,578 (125) 902 (125) 
  25,082 (125) 13,190 (125) 
Trade receivables that are less than three months overdue are generally not considered impaired. Receivables more than three 
months overdue are considered on a line by line basis and a provision is made where recovery is considered doubtful. 
No other financial assets are past due. 
Liquidity risk 
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. To minimize this risk the Group 
only invests funds in liquid securities. As a contingency, the Group maintains a £3 million overdraft facility. 
The following table is drawn up based on undiscounted contractual maturities including both interest and principal cashflows. 
 Carrying Contractual  Less than   More than 
 amount  Cashflows 1 year 1-2 years 2-5 years 5 years 
April 2012 £’000 £’000 £’000  £’000  £’000 £’000 
Bank loan  5,527 5,861 628 1,903 3,330 –
Trade and other payables  8,686 8,686 8,686 – – – 
 14,213 14,547 9,314 1,903  3,330  – 
 
 Carrying Contractual   Less than  More 
 amount  Cashflows 1 year 1-2 years 2-5 years than 5 years 
April 2011 £’000 £’000 £’000  £’000  £’000  £’000 
Bank loan  5,587 6,384 194 194 5,938 58 
Trade and other payables 5,239 5,239 5,239 – – – 
 10,826 11,623 5,433 194 5,938 58 
 
Fair values of financial instruments 
Fair value is defined as the amount at which a financial instrument could be exchanged in an arm’s length transaction between two 
informed and willing parties and is calculated by reference to market rates discounted to current value. 
  2012 2011 
  Carrying amount Carrying amount 
  and fair value and fair value
 Notes £’000 £’000 
Financial assets: 
Trade and other receivables  11 27,430 13,287 
Cash and cash equivalents  12 66,262  49,374 
Available for sale investments  9 12,985 5,717 
 
Financial liabilities: 
Long term borrowings  14 (5,527) (5,587) 
Trade and other payables  13 (8,626) (5,239) 
  
 
Assumptions used in estimating the fair values of financial instruments reflected in the table above:  75 
Cash and cash equivalents 
The fair value approximates to book value due to the short term maturity of these instruments. 
Available for sale investments 
Fair Value Hierarchy 
The Group measures the fair value of available for sale investments using the following hierarchy that reflects the significance of the 
inputs used in making the measurement: 
Level 1: Quoted market price (unadjusted) in an active market for an identical financial instrument. 
Level 2: Valuation techniques based on observable inputs, such as market prices for similar financial instruments. 
Level 3: Valuation techniques using unobservable inputs which can have a significant effect on the instrument’s valuation. 
The Group has applied the above hierarchy to its investments as follows: 
Toumaz – the valuation is based on the quoted share price for Toumaz Holdings on AIM. This investment is categorised as Level 1. 
Frontier – the valuation of the equity holding in Frontier is based on a discounted cashflow with assumptions made on the forecast 
cashflows, the annual terminal growth rate and the discount rate. The fair value of the loan note in Frontier is assessed to approximate 
to book value. This investment is categorised as Level 3. 
GreenPlug – the valuation of the equity holding in GreenPlug is based on a discounted cashflow with assumptions made on the 
forecast cashflows, the annual terminal growth rate and the discount rate. This investment is categorised as Level 3. 
Audioboo – the valuation of the equity holding in Audioboo is based on the most recent funding round which is estimated to 
approximate to the fair value as at the reporting date. The fair value of the convertible loan note in Audioboo is assessed to 
approximate to book value This investment is categorised as Level 3. 
Orca – the valuation is based on the purchase price of the investment which was acquired during the year. This investment is 
categorised as Level 3. 
The following table analyses investments, measured at fair value at the reporting date, by the level in the fair value hierarchy into which 
the fair value measurement is categorised: 
 2012 2011 
 £’000 £’000 
Level 1  9,338 2,459 
Level 2  – – 
Level 3  3,647 3,258 
 12,985 5,717 
 
The following table shows a reconciliation from opening balances to the closing balances for fair value measurements in Level 3 of the 
fair value hierarchy: 
 £’000 
At 30 April 2011 3,258 
Investment in the year  477 
Total gains and losses: 
 In income statement (145) 
 In other comprehensive income  57 
At 30 April 2012 3,647 
 
Although the Group believes that its estimates of fair value are appropriate, the use of different methodologies or assumptions could 
lead to different measurements of fair value.  
With respect to fair value measurements in Level 3 of the fair value hierarchy, the valuation of Frontier and GreenPlug would not be 
impacted by making reasonable changes to the assumptions on the forecast cashflows, the annual terminal growth rate and the 
discount rate. The valuation of the Audioboo is based on a funding round carried out in December 2011 and in the short intervening 
period the value is not viewed to be materially different. Any change in the valuation of Audioboo would have a commensurate change 
in the value of the Group’s holding. The valuation of Orca is based on the purchase price of the investment which was acquired during 
the year and in the short intervening period the value is not viewed to be materially different.  76 
Loan Note 
The Loan Note in Frontier is non-interest bearing. The time period for redemption of the Loan Note is subject to the discretion of 
Frontier, Loan Note holders or a sale or listing and therefore is undetermined. Fair value is therefore assessed to approximate to  
book value. 
The Convertible Loan Note in Audioboo is non-interest bearing. The time period for conversion of the Convertible Loan Note is subject 
to the discretion of the Group. Fair value is assessed to approximate to book value. 
Long term borrowings 
The fair value approximates to book value as this instrument is at a variable interest rate. 
20 Contingent Liabilities 
The Group had no contingent liabilities at 30 April 2012 or 30 April 2011. 
21 Employee Benefits 
Pension 
The Group participates in a number of defined contribution pension plans in the UK. The assets of the schemes are held separately in 
independently administered funds. There were no outstanding contributions at the balance sheet date. 
Share-based payments 
Share options 
The following options have been granted under the Imagination Technologies Key Employee Share Option Schemes, Savings Related 
Share Option Scheme and Long Term Incentive Plan and remain outstanding as at 30 April 2012: 
    Date from 
 Outstanding  Exercise which first Expiry 
Year of Issue at 30 April 2012 price exercisable date 
2002 280,992 19p 2005 2012 
2003 178,580 34.5p 2006 2013 
2003 32,500 60p 2006 2013 
2004 31,500 82p 2007 2014 
2005 584,533 64.25p 2008 2015 
2005 330,573 67.5p 2008 2015 
2006 *145,000 55p 2009 2016 
2008 8,115 55.6p 2011 2012 
2009 581,572 139p 2012 2013 
2010 340,486 305.2p 2013 2014 
2011 1,018,869 0p 2011 2016 
2011 403,124 366.2p 2014 2015 
Total  3,935,844  
Options marked* have been granted under the Long Term Incentive Plan. 
 
The number and weighted average exercise prices of share options are as follows: 
  Weighted average Number Weighted average Number 
  exercise price of options exercise price of options 
  2012 2012 2011 2011 
Outstanding at the beginning of the period 82p 4,991,729 65p 7,100,745 
Exercised during the period  53p (2,411,932) 60p (1,673,440) 
Granted during the period  355p 413,982 305p 358,381 
Lapsed during the period  191p (76,804) 79p (793,957) 
Outstanding at the end of the period  143p 2,916,975 82p 4,991,729 
 
Exercisable at the end of the period  53p 1,591,793 46p 2,473,230 
The weighted average share price during the period was 488.94p (2011: 364.8p). 
The options outstanding at the year end have an exercise price in the range of 0p to 366.2p and a weighted average contractual life of 
2.0 years.  77 
Employee Share Plan 
The following awards have been granted under the Imagination Technologies Employee Share Plan and remain outstanding at  
30 April 2012: 
  Date from 
 Outstanding which first Expiry 
Year of Issue at 30 April 2012 exercisable date 
2009 415,620 2012 2012 
2009 3,406,030 2012 2012 
2009 2,250,000 2012 2014 
2010 1,200,818 2013 2013 
2010 380,000 2013 2014 
2011 1,884,889 2014 2014 
2011 1,680,827 2014 2014 
2011 6,861 2012 2017 
2011 10,820 2011 2016 
2011 382,303 2012 2017 
2011 535,208 2013 2018 
Total 12,153,376  
 
As at 30 April 2012, 3,600,600 shares (2011: 3,600,600) were held by the Group’s Employee Benefit Trust. 
The Company has share option schemes and an employee share plan scheme, details of which are contained in the Remuneration 
Report. 
In accordance with IFRS 2, the fair value of services received in return for share options and employee share plan awards granted to 
employees is measured by reference to the fair value of share options and employee share plan awards granted. In accordance with 
the transitional provisions in IFRS 1 and IFRS 2, the recognition and measurement principles in IFRS 2 have not been applied to share 
option grants made prior to 7 November 2002 which had not vested by 1 April 2005. The estimate of the fair value of the services is 
measured based on the Black-Scholes or Monte Carlo Simulation models, financial models used to calculate the fair value of options 
and awards under the employee share plan. 
The assumptions used in the calculation of the fair value of options are set out below: 
 
Date of share option grant  Dec 2005 Jun 2006 Sep 2006 Sep 2007  Sep 2008 Oct 2009 Oct 2010 Oct 2011 
Share price at grant date (pence)  67.5 5 88 113 69.5 210  432 457.8 
Exercise price (pence)  84-101 69-82 – – – – – – 
Expected volatility  60% 60% 60% 41% 46% 63% 64% 62.4% 
Risk free interest rate  4.4% 4.5% 4.5% 5.8% 4.4% 1.7% 0.8% 0.51% 
Time to maturity (years)  5 5 3 3 3 3 3 3.25 
Fair value per option (pence)  34.4 28.0 34.7 44.5 31.2 118 235 243.9 
 
The assumptions used in the calculation of the fair value of the employee share plan awards are set out below: 
 
Date of ESP grant    Sep 2006 Jul 2007 Aug 2007 Jan 2008  Oct 2008  Oct 2009 
Share price at grant date (pence)    70.75 128.5 127.5 119 48 208 
Expected volatility    60% 41% 41%  41% 49% 63% 
Risk free interest rate    4.5% 5.8% 5.8% 5.8% 3.4% 1.7% 
Time to maturity (years)    3 3 3 3 3 3 
Fair value per option (pence)    53.0 78.4 77.6 72.6 34.2 156.3 
 
Date of ESP grant    Dec 2009 Apr 2010 Oct 2010 Dec 2010 Apr 2011 Oct 2011 
Share price at grant date (pence)    228 226 435 378 435 428.1 
Expected volatility    59% 63% – –  – 36.0% 
Risk free interest rate    2.2% 1.7% – –  – 0.87% 
Time to maturity (years)     3 3 3 3 3 3 
Fair value per option (pence)    145.0 182.0 435 378 435 356.2 
 
The expected volatility is based on the historic volatility, adjusted for any expected changes to future volatility due to publicly available 
information.  78 
Share-based payments for the year 
Share-based payments for the current and prior year are: 
 2012 2011 
Year of Award £’000 £’000 
2005/6 – 57 
2006/7 2 13 
2007/8 – 179 
2008/9 326 676 
2009/10 3,024 3,163 
2010/11 5,023 1,863 
2011/12 1,940 – 
  10,315 5,951 
 
The future estimated expense for share award schemes outstanding at 30th April 2012 is: 
 2012 2011
 £’000 £’000 
To be incurred within one year 9,468 9,666 
To be incurred after one year 7,718 12,013 
 17,186 21,679 
A deferred tax asset of £10,804,000 (2011: £14,532,000) has been recognized relating share-based payments. It arises from the 
potential future tax benefit on the exercise of incentives. 
22 Related Parties 
Identity of related parties 
Transactions between the Company and its subsidiaries have been eliminated on consolidation and are not disclosed in this note. 
Transactions with key management personnel 
Key management personnel comprise the Directors. In addition to their salaries, the Group also provides non-cash benefits to 
Directors and contributes to post-employment benefit schemes on their behalf. Directors also participate in the Group’s share incentive 
programmes. The share based payments are valued at their fair value at the date of grant. Full details of Directors’ compensation, 
including post-employment benefits is given in the Remuneration Report. 
The key management personnel compensations are as follows: 
 2012 2011
 £’000 £’000 
Emoluments  948 567 
Pension contributions 67 169 
Share based payments 1,029 1,148 
Total 2,044 1,884 
 
Details of key management’s interests in the Company’s shares and share options are set out in the Remuneration Report. 
During 2012 and 2011, no member of the Board of Directors had a personal interest in any business transactions of the Group.  79 
23 Principal Subsidiaries 
Details of the Group’s subsidiary undertakings, which are involved in the licensing of the design of multimedia technology and the sale 
of multimedia products, are as follows: 
 Country of incorporation Percentage of issued 
Name of subsidiary undertaking and of operation Type of shares share capital held 
Imagination Technologies Limited  UK Ordinary 100% 
PowerVR Technologies Limited* UK Ordinary 100% 
Metagence Technologies Limited* UK Ordinary **100% 
Ensigma Technologies Limited* UK Ordinary 100% 
VideoLogic Systems Limited* UK Ordinary 100% 
Cross Products Limited* UK Ordinary 100% 
Pure Limited* UK Ordinary **100% 
Imagination Technologies GmbH Germany Ordinary **100% 
Imagination Technologies Inc US Ordinary **100% 
Imagination Technologies KK  Japan Ordinary 100% 
Imagination Technologies India Private Limited India Ordinary **100% 
Pure Australasia Pty Ltd Australia Ordinary **100% 
Bristol Interactive Limited* UK Ordinary **100% 
Caustic Graphics, Inc. US Ordinary 100% 
HelloSoft Inc. US Ordinary 100% 
HelloSoft India Private Limited India Ordinary **100% 
 
All of the above companies are included in the Group financial statements.     *non-trading     **indirect holding 
24 Acquisitions  
The Group made three acquisitions during the prior year; Caustic Graphics Inc., HelloSoft Inc. and Bristol Interactive Ltd. 
Details of net assets acquired for each acquisition are set out below.  
Caustic Graphics Inc. 
On 17 December 2010, the Group acquired 100% of the share capital of Caustic Graphics Inc. (‘Caustic’), a company based in the 
US, which has developed unique and patented hardware and software ray-tracing technologies. Ray-tracing is a technique used for 
rendering three-dimensional graphics with complex and more natural lighting models to achieve cinema-quality 3D and a level of near 
photographic realism that is impractical with traditional 3D graphics techniques. Caustic technology lowers the cost and significantly 
increases the efficiency and performance of ray-tracing.  
Details of the fair value of net assets acquired for Caustic are set out below: 
   Fair value to Group 
 on acquisition 
   £’000 
Property, plant and equipment 30 
Goodwill 14,066 
Intangible assets - developed technology 4,662 
Trade and other receivables 27 
Trade and other payables (414) 
Deferred tax liability (1,632) 
Net assets acquired 16,739 
 
Consideration transferred (net of £363,000 of cash acquired) 16,739 
Total consideration 16,739 
 
The goodwill of £14,066,000 represents the benefits that the Group expects to gain from combining Caustic’s technology with the 
Group’s existing market leading graphics technologies and promoting such combinations to its mainstream graphics markets across 
mobile, embedded, console and computing segments. The other intangible asset of £4,662,000 represents the value placed on 
Caustic technology and the deferred tax thereon was £1,632,000. None of the goodwill recognised is expected to be deductable for 
tax purposes. 
The loss attributable to the Group from the date of acquisition to 30 April 2011 was £1,456,000; revenue in that period was not material. 
The loss for the period from 1 May 2010 to the date of acquisition was £2,263,000, revenue was not material. Acquisition related 
transaction costs of £245,000 were incurred which were included in sales and administrative expenses in 2011.  80 
HelloSoft Inc. 
The Group acquired 100% of the share capital of HelloSoft Inc. (‘HelloSoft’), a company based in the US, on 23 December 2010. 
HelloSoft is one of the world’s leading providers of Video and Voice over Internet Protocol and wireless LAN technologies. HelloSoft 
supplies both software and semiconductor connectivity intellectual property to semiconductor manufacturers, and supplies software 
intellectual property to major ODMs/OEMs and also to tier one service providers/operators who offer Video and Voice over Internet 
Protocol services. 
Details of the fair value of net assets acquired for HelloSoft are set out below: 
 Fair value to Group 
 on acquisition 
 £’000 
Property, plant and equipment 235 
Goodwill – (i) 13,099 
Intangible assets - developed technology 8,686 
Trade and other receivables 403 
Trade and other payables (2,115) 
Deferred tax liability (3,019) 
Net assets acquired 17,289 
 
Consideration transferred (net of £229,000 of cash acquired) 11,183 
Deferred and contingent consideration – (ii) 6,106 
Total consideration 17,289 
 
The goodwill of £13,099,000 represents the benefits that the Group expects to gain from complementing its existing and successful 
PowerVR multimedia processing IP cores to enable optimized end-to-end media over internet protocol solutions, securing full control of 
its Wi-Fi technology and roadmap that is already used in conjunction with its Universal Programmable Communication Platform, and 
securing access to new channels in the telecommunications market to operators/service providers and OEMs/product companies. The 
other intangible asset of £8,686,000 represents the value placed on the technology and the deferred tax thereon was £3,019,000. 
None of the goodwill recognized is expected to be deductable for tax purposes. 
The revenue attributable to the Group from the date of acquisition to 30 April 2011 was £284,000 and loss was £405,000. The revenue 
and loss for the period from 1 May 2010 to the date of acquisition were respectively £781,000 and £770,000. Acquisition related 
transaction costs of £540,000 were incurred which were included in sales and administrative expenses in 2011. 
(i) Goodwill as at 30 April 2012 is £13,919,000. The £820,000 adjustment made to Goodwill in the current year represents a correction 
of the Goodwill balance recorded in the previous year in relation to the HelloSoft acquisition. Goodwill was increased in the current 
year to reflect HelloSoft’s pre-acquisition deferred income balance which was inadvertently excluded from the fair value of net 
assets at acquisition date and hence from the calculation of Goodwill. The Directors do not consider this to be a material adjustment 
and therefore have not restated comparative balances. 
(ii) The deferred and contingent consideration figure of £6,106,000 represented the fair value assessment as at acquisition date of 
probable future consideration due based on the achievement of certain revenue and profit targets. During the year the contingent 
element of the consideration was recognised as a credit to the income statement of £4,009,000. This is because the revenue and 
profit targets concerned had not been met or, as at the balance sheet date, are unlikely to be met. As at the balance sheet date 
£1,814,000 of deferred consideration remains outstanding. 
Bristol Interactive Limited 
The Group acquired 100% of the share capital of Bristol Interactive Limited (‘Bristol’), a company based in the UK, on 17 November 
2010. Bristol was involved in the design of a development platform for the television market. Bristol had no net asset value at date of 
acquisition. The cash consideration of £56,000 is goodwill which represents the benefits that the Group expects to gain from utilising 
elements of the development platform in future products. Following the acquisition there has been no trade in Bristol, with all further 
activities in the business undertaken by Imagination Technologies Limited. The loss of Bristol for the period from 1 May 2010 to date of 
acquisition was not material. 81 
Imagination Technologies Group plc Parent 
Company Balance Sheet 
 
  As at 30 April   As at 30 April 
  2012 2011 
 Notes £000 £000 
Fixed assets 
Investment in subsidiary undertakings 3 74,138 63,478 
  74,138 63,478 
Current assets 
Debtors 4 71,412 70,652 
Cash  635 132 
  72,047 70,784 
Current liabilities 
Creditors: amounts falling due within one year 5 (1,831) (163) 
Net current assets  70,216 70,621 
 
Net assets 144,354 134,099 
 
Capital and reserves 
Called up share capital 8 26,425 25,815 
Share premium account 9 98,348 97,300 
Other capital reserve 9 1,423 1,423 
Warrant reserve 9 – – 
Share based payment reserve 9 23,532 13,317 
Retained earnings 9 (5,374) (3,756) 
Equity shareholders’ funds 10 144,354 134,099 
 
These financial statements were approved by the Board of Directors on 18 June 2012 and were signed on its behalf by: 
 
G S Shingles 
Director  82 
1 Accounting Policies 
The Parent Company financial statements present information about the Company as a separate entity and not about its Group. 
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the 
financial statements. 
There are no new accounting policies which would have a significant impact in the current year.  
Basis of preparation 
The financial statements have been prepared in accordance with applicable UK Accounting Standards and under the historical 
accounting rules. The following principal accounting policies have been applied consistently throughout the period and preceding 
year in dealing with items which are considered material in relation to the Company’s financial statements. The financial statements 
are prepared on a going concern basis which assumes that the Company will continue in operational existence for the foreseeable 
future. 
Under section 408 of the Companies Act 2006 the Company is exempt from the requirement to present its own profit and loss 
account. The Company made a loss for the year of £1,200,000 (2011: £408,000 loss). 
Under Financial Reporting Standard 1 the Company is exempt from the requirement to prepare a cash flow statement on the grounds 
that it is included in the consolidated accounts which it has prepared. 
The Company has taken advantage of the exemption contained in FRS 8 and has therefore not disclosed transactions or balances 
with its subsidiaries. 
Foreign currencies 
Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of transaction. Monetary assets and 
liabilities denominated in foreign currencies are translated using the contracted rate or rate of exchange ruling at the balance sheet 
date and the gains or losses on translation are included in the profit and loss account. 
Investments in subsidiaries 
Investments in subsidiaries are stated at cost less any provisions for impairment. 
Details of the Company’s subsidiary undertakings are included in note 23 of the Group financial statements. 
Share based payment 
The fair value of options granted is recognized as an employee expense with a corresponding increase in equity. The fair value is 
measured at grant date and spread over the period during which the employees become unconditionally entitled to the options. The 
fair value of the options granted is measured using an option pricing model, taking into account the terms and conditions upon which 
the options were granted. The amount recognized as an expense is adjusted to reflect the actual number of share options that vest 
except where forfeiture is only due to share prices not achieving the threshold for vesting. 
For cash-settled share-based payment transactions, the fair value of the amount payable to the employee is recognized as an 
expense with a corresponding increase in liabilities. The fair value is measured at grant date and spread over the period during which 
the employees become unconditionally entitled to payment. The fair value is measured based on an option pricing model taking in to 
account the terms and conditions upon which the instruments were granted. The liability is revalued at each balance sheet date and 
settlement date with any changes to fair value being recognized in the profit and loss account. 
As the Company grants options over its own shares to the employees of its subsidiaries, in accordance with UITF 44, it recognizes an 
increase in the cost of investment in its subsidiaries equivalent to the equity-settled share-based payment charge recognized in its 
subsidiary’s financial statements with the corresponding credit being recognized directly in equity. 
Transactions of the Company’s Employee Benefit Trust are included in the Company’s financial statements. In particular, the Trust’s 
purchases and sales of shares in the Company are debited and credited directly to equity. 
Taxation 
The charge for taxation is based on the profit or loss for the period and takes into account taxation deferred because of timing 
differences between the treatment of certain items for taxation and accounting purposes. 
Deferred tax is recognized in respect of all timing differences between the treatment of certain items for taxation and accounting 
purposes which have arisen but not reversed by the balance sheet date, except as otherwise required by FRS 19. 
Related Parties 
The Company has a related party relationship with its subsidiaries (see note 23) and with its Board of Directors (see the Remuneration 
Report pages 45 to 49). Details of Remuneration of Key Management Personnel are disclosed in note 22. 
2 Employees 
The Company does not employ any staff. 
Details of Directors’ remuneration are set out in the Remuneration Report. The Non-Executive Directors are remunerated by  
the Group.  83 
3 Investments in Subsidiary Undertakings 
  2012 2011 
  £’000  £’000 
Cost and net book value 
At beginning of period 63,478 29,012 
Addition – Purchase of subsidiary undertakings  – 28,515 
Adjustment – Purchase of subsidiary undertakings 1,862 – 
Addition – Share based payment to employees of subsidiary  8,798 5,951 
At end of period 74,138 63,478 
 
The adjustment made to Investments in the current year represents a correction of the balance recorded in the previous year in 
relation to the HelloSoft acquisition. Investments was increased in the current year to reflect the deferred consideration which was 
inadvertently excluded from cost of acquisitions as at 30 April 2011. The Directors do not consider this to be a material adjustment 
and therefore have not restated comparative balances. 
4 Debtors 
  2012 2011 
  £’000 £’000 
Other debtors 77 36 
Amounts owed by subsidiary undertakings 71,335 70,616 
  71,412 70,652  
 
5 Creditors: Amounts falling due within one year 
  2012 2011 
  £’000 £’000 
Accruals and deferred income 17 163 
Deferred and contingent consideration 1,814 – 
  1,831 163 
 
6 Operating leases 
At 30 April 2012, the Company had no operating lease commitments (2011: £Nil). 
7 Capital Commitments 
At 30 April 2012, the Company had no capital commitments (2011: £Nil). 
8 Called Up Share Capital 
Details of the Company’s called up share capital are shown in note 16 of the Group financial statements.  84 
9 Reserves 
 Share  Other Capital Warrant Share based Retained 
 Premium Reserve Reserve payment reserve Earnings 
 £’000  £’000  £’000  £’000 £’000 
At 1 May 2010 60,629 1,423 – 7,366 (3,267) 
 
Loss for the financial year  – – – – (408) 
Exercise of warrants _ – – –  – 
Issue of new shares 36,671 – –  –  – 
Acquisition of own shares for  – – –  – (81) 
Employee Benefit Trust 
Share based remuneration – – –   5,951 – 
A At 30 April 2011 97,300 1,423 – 13,317 (3,756) 
 
 Share  Other Capital Warrant Share based Retained 
 Premium Reserve Reserve payment reserve Earnings 
 £’000  £’000  £’000  £’000 £’000 
At 1 May 2011 97,300 1,423 – 13,317 (3,756) 
 
Profit for the financial year – –  – – (1,200) 
Exercise of warrants – –  –  – – 
Issue of new shares 1,048 – – –  – 
Acquisition of own shares for  – – – – (418) 
Employee Benefit Trust 
Share based remuneration – – –  10,215 – 
At 30 April 2012 98,348 1,423 – 23,532 (5,374) 
 
10 Reconciliation of Movements in Equity Shareholders’ Funds  
   2012 2011 
   £’000 £’000 
Equity shareholders’ funds at the start of the period  134,099 90,496  
Loss for the financial year (1,200) (408) 
Share based remuneration  10,215 5,951 
Issue of new shares 1,658 38,141 
Acquisition of own shares for Employee Benefit Trust (418) (81) 
Equity shareholders’ funds at the end of the period 144,354 134,099  85 
Consolidated Five Year Record 
 
 2012 2011 2010 2009 2008 
 £’000 £’000 £’000 £’000 £’000 
Income Statement 
Revenue 127,499 98,045 80,927 64,088 60,022 
Cost of sales (21,014) (20,791)  (25,004) (21,755) (21,413)  
Gross profit 106,485 77,254 55,923 42,333 38,609 
 
Research and development expenses (59,633) (44,696) (35,370) (31,114) (29,110) 
Sales and administration expenses (23,171) (16,298) (10,562) (8,100) (7,997) 
Gain/(write down) of investments 677 – 148 (517) – 
Contingent acquisition consideration release 4,009  – – – – 
Total operating expenses  (78,118) (60,994) (45,784) (39,731) (37,107)  
 
Operating profit 28,367 16,260 10,139 2,602 1,502 
 
Net financing income 177 100 52 120 379 
Profit before taxation 28,544 16,360 10,191 2,722 1,881 
 
Taxation (8,083) 2,918 4,016 5,404 383 
Profit for the financial year 20,461 19,278 14,207 8,126 2,264  
 
Earnings per share  Basic 7.9p 7.7p 6.0p 3.7p 1.0p 
Diluted 7.4p 7.4p 5.6p 3.5p 1.0p 
Statement of Financial Position 
Non-current assets 99,971 91,396 26,139 20,109 14,732 
Current assets 112,747 83,153 55,007 36,299 25,358 
Total Assets 212,718 174,549 81,146 56,408 40,090 
 
Current liabilities (26,874) (17,686) (11,987) (10,304) (7,104) 
Non-current liabilities (8,457) (13,793) (373) (506) (743) 
Total Liabilities (35,331) (31,479) (12,360) (10,810) (7,847) 
Net assets 177,387 143,070 68,786 45,598 32,243 
 
Called up share capital 26,425 25,815 24,345 22,839 21,926 
Capital reserves 102,935 101,078 64,595 59,629 57,015 
Retained earnings  48,027 (16,177) (20,154) (36,870) (46,698) 
Total equity 177,387 143,070 68,786 45,598 32,243 
 
These tables are for representative purposes only. Full details can be found in the Company’s Annual Reports. 86 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brazil, the Brazil logo, Caustic Graphics, Codescape, Contour 100Di, Contour 200i Air, Ensigma, Ensigma UCC, Ensigma UCCP, Evoke Mio, FlowWorld, HelloSoft, Highway 
300Di, Imagination Technologies, the Imagination logo, the Imagination Technologies logo, IMGworks, the Lounge, Meta, Move 2500, One Classic Series 2, One Elite Series 2, 
OpenRL, PocketDAB 1500, PowerVR, PowerVR SGX, Pure, the Pure logo, Pure Lounge, Sensia and SGX are trademarks or registered trademarks of Imagination Technologies 
Limited. All other logos, products, trademarks and registered trademarks are the property of their respective owners. 
Copyright © 2012 Imagination Technologies Limited, an Imagination Technologies Group plc company.