The ethical after accident solution provider
Annual Report 
Year ended 30 June 2006 Working with our customers...
...to make a difference 
for their policyholders. Ai’s strategy is to work with the 
insurance sector to provide end to 
end claims management solutions, 
which provide market leading 
customer service with an ethos 
to control claims cost inflation. Contents
Officers and Professional Advisors 1
Ai Group at a Glance 2
Group Financial Summary and Highlights 4
Chairman’s Statement 6
Chief Executive Officer’s Report 8
Group Finance Director’s Report 12
Board of Directors 14
Remuneration Report 16
Report of the Directors 18
Independent Auditors’ Report to the 
Shareholders of Ai Claims Solutions plc 22
Consolidated Profit and Loss Account 23
Consolidated Balance Sheet 24
Company Balance Sheet 25
Consolidated Cash Flow Statement 26
Reconciliation of Net Cash Flow to 
Movement in Net Debt 26
Notes to the Financial Statements 27
Five Year Summary 45
Notice of Annual General Meeting 46 Directors
C A Good
Non-Executive Chairman +*#
A M Palmer
Non-Executive Deputy Chairman +#
D B Sandhu
Chief Executive Officer
P J Harrison 
Group Finance Director
D B Bergenroth
Commercial Director
C J Baker
Non-Executive Director +*#
S W Broughton
Non-Executive Director +*#
+ members of audit committee
* members of remuneration committee
# members of nominations committee
Secretary
P J Harrison
Registered office
Indemnity House
Sir Frank Whittle Way
Blackpool
FY4 2FB
Registered number
1492207
Auditors
RSM Robson Rhodes LLP
Chartered Accountants
Colwyn Chambers
19 York Street
Manchester
M2 3BA
Bankers
Yorkshire Bank
1 Tustin Court
Portway
Preston Riversway
Preston
PR2 2YQ
Broker and 
Nominated Advisor
Evolution Securities Limited
100 Wood Street
London
EC2V 7AN
Solicitors
Wedlake Bell                                    
52 Bedford Row   
London 
WC1R 4LR                             
Registrars
Computershare Investor Services Plc
P O Box 82 
The Pavilion
Bridgwater Road
Bristol
BS99 7NH
Officers and Professional Advisors
1 Mission and Strategy
T o be the UK’s leading outsourcer for the
management of motor claims. Ethical, pro-active
containment of claims cost inflation.
About Ai
• 84,000 Accidents managed on behalf of the 
UK’s leading insurance companies
• 23,000 vehicle replacements provided to 
insurance policyholders
• 25,000 accident damage cases managed
• 223 staff employed in Blackpool Head Office 
and Operating Centre 
• Partner 7 of top 20 Insurance Companies
Ai Group at a Glance
2
OPERATING CASH FLOW OPERATING CASH FLOW
(2005: £(3.7)m) (2005: £(3.7)m)
ADJUSTED PBT INCREASED BY ADJUSTED PBT INCREASED BY
to £1.45m. to £1.45m. 
(2005: £249,000) (2005: £249,000) 3
GROSS MARGIN INCREASE GROSS MARGIN INCREASE
(2005: 21.0%) (2005: 21.0%)
BORROWINGS REDUCED BY BORROWINGS REDUCED BY
to £3.8m (2005: £6.4m) to £3.8m (2005: £6.4m) Note: Due to the Group’s change in year end from December to June in 2004, the results presented below for the twelve
months ended 27 June 2004 have been restated and are unaudited.
2006 2005 2004
Unaudited
(Restated)
£‘000 £‘000 £’000
T urnover 37,986 36,945 21,509
Adjusted profit before taxation – before amortisation of goodwill 
and exceptional administrative costs 1,452 249 1,745
Profit/(loss) before taxation 913 (468) 1,089
T axation (charge)/credit (416) 19 (116)
Dividend (276) (153) (306)
Retained profit/(loss) transferred to/(from) reserves 221 (602) 667
Earnings per share
Basic before amortisation of goodwill and exceptional administrative costs  1.69p 0.44p 2.89p
Basic 0.81p (0.73)p 1.59p
Dividend per share 0.45p 0.25p 0.50p
Financial Highlights 
• Adjusted PBT (before goodwill amortisation and exceptional administrative costs) 
increased by £1.2m to £1.45m (2005: £249,000).
• Gross margin increased to 24.8% (2005: 21.0%).
• Operating cash flow of £4.8m (2005: £(3.7)m).
• Borrowings reduced by £2.6m to £3.8m (2005: £6.4m).
• Basic EPS (before amortisation of goodwill and exceptional administrative costs) 
increased by 1.25p to1.69p (2005: 0.44p).
• Proposed final dividend of 0.25p per share. Full year dividend per share of 0.45p (2005: 0.25p).
Operational Highlights
• 2 new relationships with leading insurers came on stream.
• A pilot with a top 5 insurer due to commence.
• Successful strengthening of board team with David Sandhu becoming Group Managing Director in July 2005 
(and CEO from July 2006) and Peter Harrison joining as Group Finance Director in September 2005.
• Introduction of training academies to train claims handlers and develop the management community.
• Sun Financial Systems implemented. New integrated claims package on schedule for implementation in early 2007.
4
Group Financial Summary and Highlights 5
“Our Customer
Satisfaction Surveys
consistently give us a
95% satisfaction rating”
“Significant Insurance 
company experience 
at Board level through to 
claims handlers”
“We fully endorse the
FSA’s principle of
Treating Customers
Fairly” I am pleased to report that the Group has delivered a
strong improvement in profitability and cash flow over
the last 12 months. These results build upon the
improvements reported at the interim and provide a
reassuring platform from which the Group will continue
to move forward.
Results
Adjusted profit before tax (before goodwill amortisation
and exceptional administrative costs) was £1.45m (2005:
£249,000). As anticipated at the interim, the result was
weighted in the second half year, with £948,000 being
generated in the second half year compared to £504,000
in the first half year.
Turnover grew by 2.8% to £38.0m (2005: £36.9m). As
anticipated, pricing actions taken on certain contracts and
a change in mix towards higher margin vehicle
replacement services led to an increase in gross margins
to 24.8% (2005: 21.0%) in the current year.
Our cash position improved considerably during the year
and particularly during the second half year. Cash
generated from operations of £4.8m was particularly
strong. Our debtor days average 75 days (2005: 88 days)
which compares favourably to the sector. This is a
testament to the relationship we have with the large
insurance companies and the strategic focus we have
placed on this activity during the year.
Our net debt reduced by £2.6m during the year, after
absorbing £1.2m of capital expenditure on IT and
infra-structure development. Our commitment to
maintaining and developing IT and infra-structure ensure
the Group has the capacity needed to maintain growth
moving into 2007.
Strategy
Our core insurance market is particularly active with a
significant increase in the number of companies exploring
new avenues to increase the service offered to their ‘not at
fault’ policyholders. The timing of when the market would
move in this direction has been difficult to predict, but
there now appears to be real momentum. We believe that
we are well positioned to work closely with the insurance
market in developing and delivering these solutions.
It is pleasing to report that two new relationships came on
stream during the year and we now act for 7 of the top
20 UK motor insurers. We will also shortly commence a
pilot with another top 5 insurer. Our business is now
de-risked such that we are not dependent on any single,
large client.
Chairman’s Statement
6
“I am pleased to
report that the Group
has delivered a
strong improvement
in profitability and
cash flow over the
last 12 months.
These results build
upon the
improvements
reported at the
interim and provide a
reassuring platform
from which the
Group will continue
to move forward.” I am pleased to report that we will once again be
partnered by Avis UK in the provision of vehicle
requirements. This arrangement secures our rental rates
for a two year period and provides further opportunity to
explore new business development areas including the
Group’s first steps into the ‘Fleet Repair Market’.
The broader control of our supply chain is critical to
managing service quality and costs. We have recently
taken repairs in house with our own repair network and
engineering function. We have also developed a dedicated
legal resource to be branded Ai Law, which will become
fully operational in October 2006.
Our business principle of delivering excellent service and
cost containment is now widely recognised in the
insurance sector and we will be broadening our range of
offerings in the coming year. The recent launch of our
broker market product was well received and we have
already secured a pilot with a leading broker intermediary
to service an element of their work.
Management and Board Changes
In our annual report last year I referred to the substantial
strengthening of the main Board through a number of
appointments. One year on I am happy to say these
appointments have proved successful and I have pleasure
in confirming that, with effect from July 2006, David
Sandhu has been confirmed as Chief Executive Officer
reflecting the energy and commitment he has brought us.
We have continued to build up the experience and depth
of the executive management of Ai, a matter upon which
David reports further in the Chief Executive Officer’s
Report. We are always looking for the best talent to take
Ai forward and, at top level, I am satisfied that we have a
first class team in place to take the Group forward.
Dividend
The Board is pleased to propose a final dividend of
0.25p per share for the year to 30 June 2006 to be paid
on 4 January 2007. Dividends paid in the year totalled
£276,000 (2005: £153,000).
It is the Board’s policy to have a progressive dividend and
broadly to increase dividends in line with profits and
future prospects and will be weighted towards the second
half year.
Future Prospects
The level of new business activity within the insurance
market is very encouraging. Ai is actively engaged with the
market in developing innovative solutions which assist the
insurance sector in providing excellent service to
customers whilst at the same time containing the level of
cost inflation in the market.
I am pleased with the progress made during the year and
am confident that we can consolidate on this and then
take advantage of the new opportunities as they
crystallise. It is a testament to our people and the
commitment shown by them across all levels of the
business that this progress has been achieved and I pass
on my sincere thanks on behalf of the Directors.
7
Charles A Good,
Chairman
6 October 2006 Introduction 
I am delighted to present my first report as Chief Executive
Officer, since taking over from Adrian Palmer in July 2005.
Ai has delivered a PBT of £913,000 for the year (2005:
loss of £468,000) and made significant advances in cash
management, increasing the strength and flexibility of the
balance sheet.
Ai now provides services to 7 of the top 20 insurers.
As our product offering develops, the actual number of
‘solutions’ Ai provides directly to the insurance market
during the year has grown, both in terms of the number of
insurers and total solutions being managed, to a total of
15. This progress significantly reduces the risk associated
with the lumpy nature of contract wins at Ai.
Our core solutions provide high levels of service to the
customer yet continue to respect the need to cooperate
with insurers to protect against claims inflation. Whilst my
team and I remain committed to the primary strategy of
working with insurers, the precise timing in terms of
contract wins remains challenging. As a result we have
broadened our distribution strategy moving forward and
have launched initiatives in the areas of brokers, repairers,
fleets and manufacturers/dealerships which I expect to be
earnings enhancing during the year. 
A Changing Market Place
Ai’s core strategy has focused on delivering end to end
claims management solutions for the motor insurance
market, principally to insurance companies, who ultimately
pay the cost of claims. Our services are available for all
parties to an accident – fault and not at fault customers. 
The motor insurance market is experiencing significant
challenges to profitability with claims cost increases,
primarily third party claims, causing rates to harden
significantly in both the primary and re-insurance markets.
Claims cost containment remains a high priority for
insurers and Ai’s strategy is to offer protection to insurers
to manage claims coming against them when their
policyholder is at fault and offer market leading services to
their not at fault customers. 
We are slowly seeing leading insurers move forward more
actively in both these areas and commence pilots with Ai.
We believe these trends are unlikely to reverse and that Ai
is well positioned as an advisor and partner of choice to
the insurance market, gained through a reputation for
customer service, technical excellence in claims
management and an ethos to control claims cost inflation.
We recognise that a ‘one size fits all service’ is not a
response to a complex and changing market and that our
solutions will evolve as our partners experiment with a
range of possibilities.
Chief Executive Officer’s Report
8
“We believe that our
responsible approach
to the containment of
claims costs mean
our claims are paid
more quickly.” Business and Commercial Development
Ai continues to provide two primary products to insurers.
Our ‘non fault’ product provides a gap fill in terms of the
service the policyholder receives from the insurer in that it
satisfies specifically their mobility need and our
intervention product ‘Pr£dicta,’ that approaches the
innocent third party to satisfy all their needs following the
road traffic accident.
I am pleased to report that we have seen a net growth of
2 in the number of insurers procuring services with Ai as
well as broadening the range of products delivered to our
partners. This is a continued trend and has resulted in Ai
not being dependent on any one account. 
Ai now serves 7 of the top 20 insurers in the UK. We
have recently been selected by a top 5 insurer to partner
them from October 2006 in a series of pilots across
our portfolio.
Ai has seen a strong growth (21%) in the number of cases
managed under our intervention service Pr£dicta. This
product saves on average 35% of the cost of a claim if it
had been presented in the market by an accident
management company and 10% against insurer’s own
managed cost. This product ensures that hire and repair
periods are minimised and third party personal injury
requirements are dealt with responsibly.
Whilst the volume of insurer non fault referrals reduced by
15%, due to the exit of the contract previously highlighted
at the interim, the number of insurers using our scheme
increased to 5 out of the top 20 insurers.
We will be developing our product range and distribution
footprint further during the coming year, utilising Ai’s
ethical brand, customer service, technical excellence and
efficient infra-structure. We have developed a new product
suite for the insurance broker market and are about to
commence a pilot with significant potential. We will build
on our brand strength - that a claim managed by Ai is
recognised in the insurance market as one embracing cost
containment and will be settled expeditiously, which
benefits both claimant and insurer.
The commencement of a new strategic partnership with
Avis UK will make them Ai’s main rental provider and they
will work closely with us in developing new propositions. By
utilising Avis’ scale we are able to compete in
procurement and service terms with any provider in the
market place, without the need to tie up capital to finance
a fleet of vehicles. 
Ai has also recently established an in house engineering
function with its own network of repairers. ‘Ai Repair
Solutions’ will enable more active management of repair
costs and down time – key cost drivers. I wish to thank
Fleet Accident Repair Group Limited (FARG) and their
shareholders for their loyal support over the past 5 years.
This change simply removes an administration link in the
chain allowing greater control of the customer experience.
Ai Repair Solutions continues to draw primarily upon the
same network of repairers that has serviced Ai and its
insurer’s clients over the last 5 years.
We have also established ‘Ai Law’ with a solicitor partner
to provide a full range of legal services, on an operational
and financial basis similar to owning our own law firm. Ai
Law will also assist us to guarantee ethical management
of personal injury cases, whilst actively attending to the
needs of claimants in need of some form of rehabilitation
following an accident.
With the broadening and growth in our offering, it is vital
to continue to invest in the development of our systems
competence and the platform upon which the operation
sits. It was reported previously that significant investment
has been made in developing our new Claims And
Recovery System (C.A.R.S) which has a go live date in
early 2007. Couple this with the investment made in
System Union’s Sun System for financial control and Ai is
ready to handle substantial volume growth in the future.
People
We strengthened our Group Board team during the year
with Peter Harrison joining us as Group Finance Director
in September 2005, having previously held a number of
senior financial roles at Aviva plc and RSA plc. Peter’s
knowledge of the sector and commercial financial
expertise has been a significant addition to the Group
Board. His leadership both in terms of the finance
function and in more robust budgeting and forecasting
procedures has been instrumental in our better
performance in this regard.
We have also strengthened the broader management
team during the year, with Chris Shaw joining as Head of
Claims in April 2006 and Jimmy Monteith joining as
T echnical Services Director in June 2006 with responsibility
for establishing Ai’s own repair network and managing the
operational team. Chris previously worked for Ai up to
December 2004 and rejoined from Accident Exchange
Group PLC. Jimmy joined Ai from FARG where he was
Managing Director.
Individual accident victims expect high levels of attentive
service following an accident. Recruitment, development and
retention of a skilled workforce is critical to the success of the
9 10
business. Ai invests in every employee when they join the
business through a comprehensive induction programme.
We have also established ‘academies’ to facilitate the
development of critical skills. The Claims Academy enables
operational handlers to be proficient in technical and
customer service skills; our training suite provides a
simulated environment for staff to be trained for 3 weeks
before becoming fully operational. The T alent Academy has
been established to identify and develop the high potential
managers and leaders of the future and provide them with
MBA type development in the real workplace, under the
mentoring of the Executive Directors. I believe this will
develop a highly skilled and motivated pool of talent to
support the Directors in driving the business forward.
Operational Performance
We have continued to deliver excellent and responsive
customer service to our partners and their customers. We
continually monitor our performance and agree KPI’s with
our partners. It is very pleasing to see the positive
comments from policyholders and partners and a minimal
level of complaints. As an FSA regulated business we fully
adopt the principle of ‘Treating Customers Fairly.’ We have
a 95% overall customer satisfaction rating from our own
customer satisfaction surveys.
Average Pr£dicta hire durations decreased by 12% as Ai
actively manage vehicle downtime, which provides an
obvious benefit both to our insurer and claimants. Our
Pr£dicta replacement vehicle solutions have increased by
48% over the year. The total number of repairs carried out
by Ai increased by 40% through our approved repair
network. The volume of PI cases referred to Ai’s panel of
solicitors increased by 43%.
We believe that our responsible approach to the
containment of claims costs means our claims are paid
more quickly. Our major quoted competitors have a level
of debtor days, which we calculate at 206 days based on
average debtor days for the year. Our debtor days average
75 days. We will continue to look for further improvements
in operational and financial efficiency in the coming year,
whilst at the same time investing in the development of
the business. We will continue to strengthen our team to
support our development and will benefit from the new
claims system coming on line in early 2007.
Outlook
Good progress has been made during the year in
delivering a strong development in financial and
operational performance. With the broadening of our
distribution strategy, continued investment in the very best
in the market in terms of people and a greater awareness
within the insurance market of the real factors causing
claims inflation I look forward with confidence to
delivering a successful 2007. I expect that profits will be
weighted towards the second half of the 2006/07 financial
year reflecting the development of commercial relations
and seasonality in the business.
I would like to personally thank my Co Directors for their
commitment and dedication, and the support and
challenge from all the management and staff of Ai. We
are a passionate team with real ambition and I very much
look forward to leading the business in this exciting time.
David B Sandhu,
Chief Executive Officer
6 October 2006
Chief Executive Officer’s Report (continued)
“With the broadening of our distribution strategy, continued
investment in the very best in the market in terms of people and
a greater awareness within the insurance market of the real
factors causing claims inflation I look forward with confidence
to delivering a successful 2007.” 11
“Ai now provides 
services to seven of the 
top 20 insurers.”
“The total number of 
repairs carried out by 
Ai increased by 40%...” 12
Group Finance Director’s Report
Introduction 
I am pleased to report that the Group has delivered a
significant increase in profits and that this is underpinned
by a broader range of relationships with the insurance
market. Furthermore, focused improvements in working
capital management have produced an excellent return
through a reduction in net debt of £2.6m. Significant
investment has continued in our IT and property
infra-structure to create an attractive and highly efficient
environment to service our partners’ policyholders going
forward, the benefits of which will be seen during 2007. 
Restatement of Prior Period Results
The annual report has been prepared using accounting
policies that are consistent with those adopted in the
statutory accounts for the period ended 26 June 2005
other than the adoption of ‘FRS 21’ Events after the
balance sheet date and ‘FRS 22’ Earnings per share.
Adoption of policies consistent with these standards is
required in accordance with United Kingdom best
practice. The impact of these policies is shown in
Note 26 to the financial statements.
Financial Overview
The Group generated a pre-tax profit of £913,000 in the
year (2005: loss of £468,000) an improvement of £1.4m.
Pre-tax profit before goodwill amortisation and exceptional
administrative costs was £1.45m (2005: £249,000). 
Turnover of £38.0m grew by 2.8% over the previous year.
Growth was impacted in the second half year by the
cessation of a repair only contract, which generated little
margin for the Group. This, together with re-pricing
actions on certain contracts, contributed to the
improvement in gross margin to 24.8% (2005: 21.0%)
for the year as a whole.
Administrative expenses (excluding certain exceptional
operating costs) before exceptional costs increased by
£361,000 over the previous year, reflecting higher
depreciation and operating lease costs associated with
investment in additional capacity, together with costs
associated with strengthening the Board and Senior
Management team.
Interest
The increase in cash in the period of £2.8m, driven
predominantly by a cash inflow from operating activities of
£4.8m, has led to a reduction in the overdraft to £2.2m.
Despite this the overall interest charge has increased to
£401,000 (2005: £293,000) due to the impact of a first
full year of mortgage interest on the new building and
increased finance lease costs due to additions in the year.
“Significant
investment has
continued in our IT
and property
infra-structure to
create an attractive
and highly efficient
environment to
service our partners’
policyholders going
forward, the benefits
of which will be seen
during 2007.” 13
T axation
The Group does not expect to pay Corporation T ax in
relation to the current year due to the availability of tax
losses brought forward from prior periods. As a result of
the Group generating a profit in the year, the deferred
tax asset held in the balance sheet reduced by £416,000
to £1,053,000. 
Earning Per Share
Basic Earnings Per Share (EPS) increased by 1.54p to
0.81p (2005: (0.73)p). Adjusted EPS, which measures
EPS before goodwill amortisation, also rose by 1.54p to
1.69p (2005: 0.15p). 
Dividends
The dividend paid from reserves of £276,000 reflects the
payment of a final dividend in relation to the previous
period of £153,000 (0.25p per share paid in January
2006) and an interim dividend for the current period of
£123,000 (0.20p per share paid in April 2006).          
The Board has proposed the payment of a final dividend
for the year of £153,000 (0.25p per share), payable on
4 January 2007 to shareholders on the share register
at 15 December 2006. 
Under ‘FRS 21’ Events after the balance sheet date only
dividends declared in a financial period are reflected in
the financial statements for that period. Accordingly, the
proposed payment of £153,000 is not reflected in these
financial statements.
Cashflow and Working Capital
The Group has generated a significant improvement in its
cash position during the year. Net cash inflow from
operating activities was £4.8m (2005: outflow of £3.7m).
The improvement is attributable to an improvement in
underlying profits and to focused management of billings
and collections. 
The Group’s strategy of working positively with the
insurance market to contain claims costs has assisted
collection activity. Our investment in working capital
largely consists of billed and unbilled receivables, the latter
being incomplete cases. The value of trading current
assets (excluding deferred tax) was £12.4m at 30 June
2006, down by £3.7m compared to the previous year. Our
trading creditors (including VAT) provided £8.6m of
funding at 30 June 2006, down by £1.1m.
Fixed Assets
Fixed asset additions of £1.6m reflects the investment
made in new computer equipment, development of
software for the new claims and finance systems and
residual premises fit out costs. During the year the new
finance system was brought into use. Further investment
was made in the new claims system, which will be fully
integrated with the financial system when it comes into
use in early 2007. The new system will enhance the data
exchanges we have with our partners and improve service
levels, efficiency and control over our entire operation
through streamlined processes and workflow
management. The benefits of this system will start to
materialise in 2007.
Capital Structure and Financing
Proceeds from share issues generated £13,000 during the
year upon the exercise of share options. 
Net debt stands at £3.8m (2005: £6.4m), a reduction of
£2.6m. Debt consists of a bank overdraft of £2.2m and
structured finance in the form of a property loan and
computer leases. The Group has a revolving overdraft
funding facility with Yorkshire Bank for up to £10m. 
Interest charges on the overdraft and property loan are
variable, linked to Yorkshire Bank’s base rate.
Financial Risk Management
The Group does not enter into derivative transactions nor
trade in financial instruments. The main risk arising from
financial instruments is interest rate risk, linked to
movements in Yorkshire Bank’s base rate. The Group
enters into contracts with customers, for which vehicle
provision prices may be prescribed for periods of up to 12
months. The Group secures supply arrangements with
rental companies to mitigate the impact of volatility in
vehicle prices over broadly similar periods. 
Implementation of International 
Financial Reporting Standards
As an AIM listed company the Group is required to report
under International Financial Reporting Standards (IFRS)
for the year ended 30 June 2008. A project has
commenced defining actions and a timescale to adopt
IFRS involving financial and business wide processes which
will be impacted by the transition.
Peter J Harrison,
Group Finance Director
6 October 2006 Executive Directors
David became CEO in July 2006 having previously been
Group Managing Director (from July 2005) and Director
of Claims and Operations. Prior to joining Ai in October
2000 he spent twelve years working in the claims teams
of various insurers including Bishopsgate, GRE, AGF and
Fortis – specifically dealing with complex claims. In the
two years prior to joining Ai he was responsible for Fortis
policy on Credit Hire. A statistician by background, David
has a particular interest in Operational Research. He is
also an executive member of NACHO, a member of the
ABI GTA T echnical Committee and is a regular speaker
at industry events.
Peter joined Ai as Group Finance Director in September
2005. He is a chartered accountant and MBA from
Manchester Business School. He qualified with T ouche
Ross & Co and as a senior manager had a broad portfolio
of plc clients. He has extensive financial services and
general insurance expertise gained with Aviva where, as a
Director of Finance, he was responsible for the financial
management and control of the UK Insurance business,
playing a leading role in the integration of the Norwich
Union and CGU businesses and the acquisition of London
& Edinburgh Insurance. Peter also led the commercial
finance team in the UK Life business prior to joining
Royal Sun Alliance as UK Financial Control and
Reporting Director.
Don was appointed to the Board in January 2005. He is a
qualified professional sales and marketing individual and
has previously held plc board positions with Adams Foods,
Nabisco/Smith Foods and ABF-Burtons Foods prior to
forming his own consultancy business within MSPI Group
working with a wide variety of clients in all major
classifications of commerce in the UK, Europe, Asia,
Pacific and Africa.
Non-Executive Directors
Charles is Investment Director of Rathbones Investment
Management Limited. He is a former Chairman of Ely
Fund Managers and Managing Director of Dexia Private
Banking UK. He is Chairman of Blooms of Bressingham,
listed on AIM, and Hurricane Exploration Plc, a North Sea
exploration company, and Non-Executive Chairman of
Gallega Capital LLP , a hedge fund manager. He is a
former Director of Citigate Group Plc and Huntsworth Plc,
leading public relations companies. Charles developed a
long and successful track record in advising and growing
small to medium sized companies.
Adrian has eighteen years experience at main board or
Chief Executive Officer level, mainly with public
companies, and became Deputy Chairman of Ai in July
2005. Prior to this Adrian was Chief Executive Officer for 
6 years. He has previously held numerous main board
positions in the motor industry, including Chief Executive
Officer of Group Lotus. Adrian is also Non-Executive
Chairman at Direct Valeting Limited.
Chris is an experienced corporate financier with more than
twenty years experience including working at director level
with Hill Samuel, Coopers and Lybrand and Littlewoods.
He is Chairman of Business Liverpool, Deputy Chairman
of Jacques Vert Plc and Blooms of Bressingham Holdings
Plc. He is also a Non-Executive Director of Park Group Plc
and the Training and Development Agency for Schools.
Chris is the senior independent director and chairs the
audit and remuneration committees.
Steve was appointed to the board in January 2005
bringing a wealth of experience across the whole of the
insurance market. He has held main board positions with
Royal & Sun Alliance Plc, Polaris UK Limited, Swinton
Insurance Limited and Motor Insurers Bureau (MIB) and is
currently a Non-Executive Director of the board of Fortis
UK, Sun Alliance and London Pension Fund Limited. 
Steve is chairman of the nominations committee.
14
Board of Directors
David Sandhu
Chief Executive Officer
Charles Good
Chairman
Peter Harrison FCA  
Group Finance Director
Adrian Palmer  
Deputy Chairman
Christopher Baker  
Non-Executive Director
Steve Broughton  
Non-Executive Director
Don Bergenroth  
Commercial Director 15
“Ai has access to a
vehicle fleet of up to
18,000 vehicles through
our rental partners.”
“Accreditation from IIP ,
leading edge training
academies for claims
handlers and
managers.”
“Ai Repair Network provides Nationwide
access to up to 200 repair outlets.”
“Ai Law provides
dedicated legal services
to accident victims.” 16
Remuneration Report
The remuneration policy of Ai is to devise a salary and
benefits package that enables the Company to attract and
retain high calibre Directors that will enable it to achieve
its goal of creating very substantial growth.
The remuneration package for Executive Directors
comprises the following elements:
1. Basic salary.
2. Benefits, principally private medical insurance for the 
Directors and their family.
3. Car allowance and pension allowance.
4. Participation in an annual bonus scheme.
5. Participation in longer term incentivisation 
arrangements.
Remuneration for the Executive Directors is determined by
a Remuneration Committee, which is a committee of the
Board established with written terms of reference.
Christopher Baker is Chairman of the Committee and its
other members are Charles Good and Steve Broughton;
David Sandhu as CEO, attends by invitation.
Remuneration for the Non-Executive Directors is
determined by the whole Board. Adrian Palmer became
Non-Executive on 1 April 2006 and, in addition to his
fees, he continued to receive further benefits during a
transitional period until November 2006. Remaining Non-
Executive Directors do not receive benefits apart from fees
and do not participate in any bonus schemes.
Both the Audit Committee and Remuneration Committee
met twice during the year.                                               
Basic Salary, Benefits and Allowances
Basic salary and benefits packages for the Executive and
Non-Executive Directors are reported in note 4 to the
financial statements.
Service contracts for the Executive Directors are currently
twelve months.
Annual Bonus and Longer Term
Incentivisation Arrangements
The Company’s policy is to have an annual bonus scheme
supplemented by longer term incentivisation arrangements
which together reward Executive Directors for achieving
growth in the short, medium and longer term.
An annual bonus scheme was established for 2005/06
based on achieving targeted levels of profit before
taxation, goodwill amortisation and exceptional items. This
bonus scheme would pay up to a maximum of 60% of
base salary if the defined profit before taxation measure
reaches a predetermined amount. Executive Directors
participate in this scheme pro-rata to the period in which
they are full-time employees. The bonuses payable in
respect of the year are shown in note 4.
As part of the Company’s longer term incentivisation
arrangements, the Executive Directors are encouraged to
acquire a meaningful equity stake in the business.
Hitherto, this has involved the granting of share options;
the Executive Directors’ holdings of share options are
shown in detail in note 4 to the financial statements
together with the performance conditions attaching to the
most recent grant of options.
Following a decision to move away from longer term
incentivisation based solely on share options, the
Remuneration Committee has concluded that it is now
appropriate to implement a new Long T erm Incentive Plan
(LTIP) and a new tax-efficient share option scheme under
the Equity Management Incentive Scheme (EMI Options).
These plans will be subject to shareholder approval to be
sought at an Extraordinary General Meeting to be
convened for the date of the Annual General Meeting of
the Company and will operate alongside an annual bonus
scheme. Under the terms of the proposed LTIP the
Company will make grants of shares in proportion to the
amount a Director invests in the Company under the
terms of the scheme. The awards and the EMI Options
granted will vest on the third anniversary of the grant,
subject to the Executive Director remaining in post and
subject to the achievement of medium-term performance
conditions which will be related to growth in earnings per
share. The scheme will be discretionary and grants and
performance conditions will be subject to the approval of
the Remuneration Committee.
Further details of the LTIP and EMI Options scheme are
contained in the circular to the shareholders which is
being sent to shareholders contemporaneously with this
Report and Accounts.
Christopher J Baker,
Remuneration Committee Chairman
6 October 2006 17
“Fully integrated bespoke
claims and finance
systems nearing completion
costing £1.2m.”
“Second state of the
art operating centre 
completed at cost 
of £1.8m.” 18
Report of the Directors
The Directors present their report and the audited
financial statements for the year ended 30 June 2006.
Principal Activities
The Group provides a range of services covering all the
key aspects of any motor insurance claim. These include
the management of Accident Management Services,
Cost Containment, Claims Recovery, Vehicle Repair,
Replacement Vehicles and Personal Injury Claims
Managements.
Business Review and Future Developments
A detailed review of the business is contained within the
Chairman’s Statement, Chief Executive Officer’s Report
and Group Finance Director’s Report.
Results and Dividends
The Directors recommend the payment of a final
dividend of 0.25p per share to shareholders on the
register at 15 December 2006. Trading in shares will go
ex-dividend on 13 December 2006 and payment will be
made to shareholders on 4 January 2007.
The total dividend paid in the year ended 30 June 2006
was £276,000.
Donations
Charitable donations of £2,688 (2005: £nil) were made
during the period. No political contributions were made
during the year.
Directors
The present membership of the Board and their
biographical details are set out on pages 1 and 14
respectively. The Directors retiring by rotation are
Christopher Baker and Adrian Palmer, who being
eligible, offer themselves for re-election at the AGM.
The interests of those persons who were Directors at the
year end in the shares of the Company were as follows:
Ordinary shares of 10p each
30 June 2006 26 June 2005
C A Good 9,199,940 9,174,940
A M Palmer 91,235 91,235
D B Sandhu 13,735 13,735
C J Baker    10,000 10,000
S W Broughton 41,479 -
P J Harrison - appointed - -
12 September 2005
D B Bergenroth - -
G M Orme resigned as a director on 30 September 2005.
Peter Harrison had no interest in the Ordinary shares of
the Company at the date of his appointment to the
Board. Directors’ interests in share options are shown in
note 4 to the accounts. 19
Number of shares Percentage of
Issued Share
Capital
Chase Nominees Limited 16,591,618 27.0%
Nordea Bank Danmark AS 5,984,651 9.8%
Pershing Keen Nominees 5,782,206 9.4%
Limited
HSBC Global Custody    2,129,979 3.5%
Nominees (UK)
Ari Charles Zaphiriou-Zarifi 1,975,000 3.2%
Scotdeen Limited  1,936,492 3.2%
Save as disclosed above the Directors have no interests in
the shares of other Group companies that require
disclosure under the Companies Act 1985.
Insurance of Directors
The Company maintains insurance policies for the
Directors in respect of their duties as Directors of the
Company and the Group.
Substantial Interests
The Company has been advised under Section 202 of the
Companies Act 1985 of the following interests exceeding
3% in the share capital of the Company as at 30 June
2006 in addition to the Directors’ interests noted above.
Payment of Creditors
The Company’s policy for all suppliers is to fix terms of
payment when agreeing the terms of each business
transaction to ensure that the supplier is aware of these
terms, and to abide by the agreed terms of payment. The
number of day’s trade creditors for the Company was
26 (2005: 33).
Corporate Governance and Risk Management
As the Company is listed on AIM, the Combined Code
disclosures are not compulsory and consequently the
Directors and auditors do not report on compliance with the
Code. Disclosures are given indicating selective aspects
relating to the Code, but non compliances are not disclosed.
The Board currently comprises the Non-Executive
Chairman, three Executive Directors and three other
Non-Executives.
The Directors have established an Audit Committee,
consisting of the Non-Executive Directors, to receive
reports from management and the auditors on the interim
and annual accounts. A Remuneration Committee and a
Nominations Committee have also been established and
details on Directors' remuneration are shown in note 4 to
the accounts. Membership of the Committees are
indicated on page 1.
The Directors are responsible for the Group’s system of
internal control and for reviewing its effectiveness whilst
the role of management is to implement Board policies on
risk management and control. It should be recognised that
the Group’s system of internal control is designed to
manage rather than eliminate the risk of failure to achieve
the Group’s business objectives and can only provide
reasonable, and not absolute, assurance against material
misstatement and loss.
“We are always looking for the best talent to take
Ai forward and, at top level, I am satisfied that we have a 
first class team in place to take the Group forward.”
Charles A Good, Chairman 20
Report of the Directors (continued)
The controls operated include, but are not limited to, the
annual planning and budgeting process, a clearly defined
organisational structure with authorisation limits, reviews
by senior management of weekly operating information
and weekly and monthly financial data compared with
planned activity.
The Group has identified and manages its key business
risks and has a Business Continuity Plan (BCP) in place.
Financial Instruments
The Group’s financial instruments comprise borrowings,
cash and various items such as trade debtors and creditors
that arise directly from its operations. These are discussed
in further detail on page 39. 
Statement of Directors’ Responsibilities for
the Annual Report
The Directors are responsible for preparing the Annual
Report and the financial statements in accordance with
applicable law and United Kingdom Generally Accepted
Accounting Practice. 
Company law in the United Kingdom requires the
Directors to prepare financial statements for each financial
year which give a true and fair view of the state of affairs
of the Company and the Group and of the profit or loss of
the Group for that period. In preparing these financial
statements, the Directors are required to:
• select suitable accounting policies and apply them 
consistently;
• make judgements and estimates that are reasonable
and prudent;
• state whether applicable United Kingdom accounting
standards have been followed, subject to any material
departures disclosed and explained in the financial
statements; and
• prepare the financial statements on a going concern
basis unless it is inappropriate to assume that the
Company will continue in business.
The Directors are responsible for keeping proper
accounting records which disclose with reasonable
accuracy at any time the financial position of the
Company and enable them to ensure that the financial
statements comply with the Companies Act 1985. They
are also responsible for safeguarding the assets of the 21
Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information on the
Group’s website. Legislation in the United Kingdom
governing the preparation and dissemination of the
financial statements and other information included in
annual reports may differ from legislation in other
jurisdictions.
Disclosure of Information to Auditors
At the date of making this report each of the Company’s
Directors, as set out on page 1, confirm the following:
• so far as each Director is aware, there is no relevant
information needed by the Company’s auditors in
connection with preparing their report of which the
Company’s auditors are unaware; and
• each Director has taken all the steps that they ought to
have taken as a Director in order to make themselves
aware of any relevant information needed by the
Company’s auditors in connection with preparing their
report and to establish that the Company’s auditors are
aware of that information.
Auditors
The auditors, RSM Robson Rhodes LLP , are willing to
continue in office, and a resolution to reappoint them will
be proposed at the Annual General Meeting.
Approval
The Report of the Directors was approved by the Board
on 6 October 2006 and signed on its behalf by
“We will build on our brand strength - that a claim 
managed by Ai is recognised in the insurance 
market as one embracing cost containment.”
David Sandhu, Chief Executive Officer
Peter J Harrison,
Group Finance Director
6 October 2006 22
Independent Auditors' Report to the
Shareholders of Ai Claims Solutions plc
We have audited the financial statements on pages 23 to 44. These financial statements have been prepared under the
accounting policies set out therein.
This report is made solely to the Company’s shareholders, as a body, in accordance with section 235 of the Companies
Act 1985. Our audit work has been undertaken so that we might state to the Company’s shareholders those matters we
are required to state to them in an auditors' report and for no other purpose. T o the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the Company and the Company’s shareholders as a body, for
our audit work, for this report, or for the opinions we have formed.
Respective Responsibilities of Directors and Auditors
The Directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with applicable
law and United Kingdom Accounting Standards are set out in the Statement of Directors’ Responsibilities. Our
responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and
International Standards on Auditing (UK and Ireland). 
We report to you our opinion as to whether the financial statements give a true and fair view and have been properly
prepared in accordance with the Companies Act 1985. We also report to you if, in our opinion, the company has not kept
proper accounting records, if we have not received all the information and explanations we require for our audit, or if
information specified by law regarding Directors’ remuneration and other transactions is not disclosed.
We report to you whether in our opinion the information given in the Report of the Directors is consistent with the financial
statements. The information given in the Report of the Directors includes the specific information presented in the
Chairman’s Statement, Chief Executive Officer’s Report, Group Finance Director’s Report and Remuneration Report that is
cross referenced from the Business Review section of the Report of the Directors.
Basis of Audit Opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing
Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in
the financial statements. It also includes an assessment of the significant estimates and judgements made by the Directors
in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Group's
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary
in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the
overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion:
• The financial statements give a true and fair view of the state of affairs of the Company and the Group as at
30 June 2006 and of the Group's profit for the year then ended and have been properly prepared in 
accordance with the Companies Act 1985.
• The information given in the Report of the Directors is consistent with the financial statements.
RSM Robson Rhodes LLP ,
Chartered Accountants and Registered Auditors, Manchester, England
6 October 2006 23
Consolidated Profit and Loss Account
For the year ended 30 June 2006
Year ended Year ended
30 June 2006 26 June 2005
Note £’000 £’000
T urnover 2 37,986 36,945
Cost of sales (28,566) (29,200)
-------------------- --------------------
Gross profit 9,420 7,745
Administrative expenses before exceptional costs (8,106) (7,745)
Administrative expenses – exceptional costs 3 - (178)
-------------------- --------------------
Group operating profit – before amortisation of goodwill 1,853 361
Amortisation of goodwill (539) (539)
Group operating profit/(loss) 6 1,314 (178)
Interest receivable and similar income - 3
Interest payable and similar charges 7 (401) (293)
-------------------- --------------------
Profit/(loss) on ordinary activities before taxation 913 (468)
T ax on profit/(loss) on ordinary activities 8 (416) 19
-------------------- --------------------
Profit/(loss) after taxation 497 (449)
-------------------- --------------------
-------------------- --------------------
Basic EPS 10 0.81p (0.73)p
Diluted EPS 10 0.81p (0.73)p
-------------------- --------------------
-------------------- --------------------
All operations are continuing.
There were no recognised gains or losses other than the profit/(loss) reported above for each of the periods. 24
Consolidated Balance Sheet
at 30 June 2006
Note 30 June 26 June
2006 2005
(Restated)
£’000 £’000
Fixed assets
Intangible assets 11 6,726 7,265
T angible assets 12 3,666 2,531
-------------------- --------------------
10,392 9,796
-------------------- --------------------
Current assets
Debtors 14 13,442 17,514
Cash at bank and in hand 4 78
-------------------- --------------------
13,446 17,592
Creditors: Amounts falling due within one year 15 (11,156) (14,952)
-------------------- --------------------
Net current assets 2,290 2,640
-------------------- --------------------
Total assets less current liabilities 12,682 12,436
Creditors: Amounts falling due after one year 16 (1,282) (1,270)
-------------------- --------------------
Net assets 11,400 11,166
-------------------- --------------------
-------------------- --------------------
Capital and reserves
Called up share capital 18 6,136 6,128
Share premium account 19 1,573 1,568
Profit and loss account 19 3,691 3,470
-------------------- --------------------
Equity shareholders’ funds 20 11,400 11,166
-------------------- --------------------
-------------------- --------------------
The financial statements were approved by the Board on 6 October 2006 and signed on its behalf by:
D B Sandhu, Director
P J Harrison, Director 25
Company Balance Sheet
at 30 June 2006
Note 30 June 26 June
2006 2005
(Restated)
£’000 £’000
Fixed assets
Intangible assets 11 265 284
T angible assets 12 1,624 1,681
Investments 13 3,609 3,609
-------------------- --------------------
5,498 5,574
-------------------- --------------------
Current assets 
Debtors 14 3,524 3,622
Cash at bank and in hand 4 78
-------------------- --------------------
3,528 3,700
Creditors: Amounts falling due within one year 15 (117) (221)
-------------------- --------------------
Net current assets 3,411 3,479
-------------------- --------------------
Total assets less current liabilities 8,909 9,053
Creditors: Amounts falling due after one year 16 (1,108) (1,105)
-------------------- --------------------
Net assets 7,801 7,948
-------------------- --------------------
-------------------- --------------------
Capital and reserves
Called up share capital 18 6,136 6,128
Share premium account 19 1,573 1,568
Profit and loss account 19 92 252
-------------------- --------------------
Equity shareholders’ funds 20 7,801 7,948
-------------------- --------------------
-------------------- --------------------
The financial statements were approved by the Board on 6 October 2006 and signed on its behalf by:
D B Sandhu, Director
P J Harrison, Director 26
Consolidated Cash Flow Statement
For the year ended 30 June 2006
Note Year ended Year ended
30 June 26 June
2006 2005 
£’000 £’000
Net cash inflow/(outflow) from operating activities 21 4,832 (3,690)
Returns on investment and servicing of finance 22 (401) (290)
Capital expenditure 22 (1,151) (313)
Equity dividends paid (276) (153)
-------------------- --------------------
Net cash inflow/(outflow) before financing 3,004 (4,446)
Financing - proceeds of issue of shares 13 12
- repayment of hire purchase and lease financing (221) (1,729)
- bank loan (25) 1,187
-------------------- --------------------
Net cash outflow from financing (233) (530)
-------------------- --------------------
Increase/(decrease) in cash in the period 2,771 (4,976)
-------------------- --------------------
-------------------- --------------------
Reconciliation of Net Cash Flow to Movement
in Net Debt
For the year ended 30 June 2006 Note Year ended Year ended
30 June 26 June
2006 2005
£’000 £’000
Increase/(decrease) in cash in the period 2,771 (4,976)
Cash outflow from decrease in hire purchase and lease financing 221 1,729
Cash outflow/(inflow) from loan 25 (1,187)
-------------------- --------------------
Movement in net debt from cash flows in the period 3,017 (4,434)
Hire purchase and lease obligations acquired with subsidiary - (74)
New finance leases incepting in the period (415) (360)
-------------------- --------------------
Change in net debt 2,602 (4,868)
Opening net debt (6,416) (1,548)
-------------------- --------------------
Closing net debt 23 (3,814) (6,416)
-------------------- --------------------
-------------------- -------------------- 27
Notes to the Financial Statements
For the year ended 30 June 2006
1. Accounting policies
Basis of accounting
The financial statements are prepared in accordance with applicable accounting standards. The particular accounting
policies adopted are described below. 
From December 2005 onwards, the Group adopted an internal calendar month accounting cycle which results in the
annual financial statements being drawn up to the 30th of June each year. 
Accounting convention
The financial statements are prepared under the historical cost convention.
Consolidation
The Group financial statements consolidate the results of the Company and its wholly owned subsidiaries. The results of
subsidiaries have been consolidated from the date of acquisition using the acquisition accounting method. 
Goodwill
Positive goodwill is the excess of the cost of an acquired entity over the aggregate of the fair values of that entity’s
identifiable assets and liabilities. Positive goodwill relating to acquisitions made since 1 January 1999 is shown in the
balance sheet as an asset. Positive goodwill, where treated as an asset, is amortised evenly over its estimated useful
economic life subject to a maximum of 20 years. Periods between 12 and 20 years are used for all existing goodwill. 
In addition to systematic amortisation, the book value is written down to recoverable amount when any impairment is
identified.
Tangible fixed assets
Depreciation is provided on cost less residual value in equal annual instalments over the estimated useful lives of assets in
use. Assets in the course of construction are not depreciated. Where there is evidence of impairment, fixed assets are
written down to recoverable amount. Any such write down would be charged to operating profit. The rate of depreciation
is as follows:
Leasehold land and buildings - 30 years
Leasehold improvements - over the period of the lease
Computer equipment and telephone systems - 20 to 33% per annum
Plant, fittings and equipment - 20% per annum
Income recognition
Credit hire and repair income and income derived from other accident management services are recognised on
transactions which have completed during the period, together with an appropriate proportion of income in respect of
hires and repairs and work in progress at the period end, less claims write offs and movements in provisions for under
recovery from insurers. Income earned from insurers under the GTA penalty payments regime when claims are settled late
is only recognised when received. Income from referrals of personal injury cases is recognised in the period a referral is
made to the extent that a right to consideration arises. Turnover is recorded exclusive of VAT . 
Hire purchase and leases
Assets held under hire purchase and finance lease agreements and the related obligations are recorded in the balance
sheet at the fair value of the assets at the inception of the agreement. The amounts by which the hire purchase and lease
payments exceed the recorded obligations are treated as finance charges which are amortised over each agreement term
to give a constant rate of charge on the remaining balance of the obligation. Rental payments under operating leases are
charged to the profit and loss account on a straight line basis over the period of the lease.
Pensions
The Company and Group operate a defined contribution pension scheme for Directors and Staff. The assets of the
scheme are invested and managed independently of the Company. The pension cost charge represents the contributions
paid and payable in the year. 28
Notes to the Financial Statements (continued)
For the year ended 30 June 2006
1. Accounting policies (continued)
Deferred taxation
The payment of taxation is deferred or accelerated because of timing differences between the treatment of certain items
for accounting and taxation purposes. Full provision for deferred taxation is made under the liability method, without
discounting, on all timing differences that have arisen but not reversed by the balance sheet date, unless such provision is
not permitted by FRS 19. Deferred tax assets are recognised to the extent that it is regarded as more likely than not that
they will be recovered. Deferred tax balances are not discounted.
2. Analysis of turnover, operating profit and net assets
The Directors consider that the activities of the Group represent a single business segment being the provision of an
outsourced claims management solution to motor insurers. 
The location and destination of all turnover, operating profits and net assets was the United Kingdom.
3. Administrative expenses – exceptional costs
Administrative expenses – exceptional costs consist of:
Year ended Year ended
30 June 26 June
2006 2005
£’000 £’000
Duplicated costs - 178
-------------------- --------------------
-------------------- --------------------
These items represented non recurring property and people costs of relocating the business formerly undertaken in Diss,
Norfolk, by the Colegate Group, which was acquired on 22 June 2004 and subsequently transferred to Blackpool.
Duplicated costs arose in July and August 2004 whilst the Colegate companies’ activities were being relocated to Blackpool.
4. Directors
Year ended Year ended
30 June 26 June
2006 2005
£’000 £’000
Directors’ emoluments:
Salaries and benefits 706 500
-------------------- --------------------
-------------------- --------------------
Contributions to money purchase pension scheme 30 32
-------------------- --------------------
-------------------- -------------------- 29
4. Directors (continued)
Analysis of emoluments of Directors:
Year ended Year ended 
Salary and 30 June 26 June
fees Bonus  Benefits  2006 2005
£’000 £’000 £’000 £’000 £’000
Executive
A M Palmer* 98 12 43 153 179
D B Sandhu 120 16 15 151 101
P J Harrison # 88 12 7 107 -
D B Bergenroth 100 11 11 122 46
G M Orme # 66 - 2 68 95
Non Executive
C A Good 38 - - 38 35
A M Palmer* 6 5 4 15 -
D M Gorton - - - - 9
C J Baker 27 - - 27 24
S W Broughton 25 - - 25 11
-------------------- -------------------- -------------------- -------------------- -------------------
568 56 82 706 500
-------------------- -------------------- -------------------- -------------------- -------------------
-------------------- -------------------- -------------------- -------------------- -------------------
* A M Palmer became a Non-Executive on 1 April 2006.  
# G M Orme resigned on 30 September 2005.  P J Harrison was appointed on 12 September 2005.
Contributions to money purchase pension schemes were as follows:
Year ended Year ended
30 June 26 June
2006 2005
£’000 £’000
A M Palmer 12 16
D B Sandhu 9 6
G M Orme 3 10
P J Harrison 6 -
-------------------- --------------------
30 32
-------------------- --------------------
-------------------- --------------------
The number of Directors accruing benefits under a money purchase scheme was 4 (2005: 3). 30
Notes to the Financial Statements (continued)
For the year ended 30 June 2006
4. Directors (continued)
Directors’ share options
Number of options
At Granted Cancelled At Exercise Normally
26 June during during 30 June price exercisable
2005 the year the year 2006 (pence)
A M Palmer 940,830 - - 940,830 42.00 2002 to 2009
A M Palmer 193,333 - - 193,333 19.00 2003 to 2010
A M Palmer 150,000 - - 150,000 16.00 2004 to 2011
A M Palmer 100,000 - - 100,000 27.50 2006 to 2013
A M Palmer 100,000 - - 100,000 30.50 2007 to 2014
D B Sandhu 33,333 - - 33,333 19.00 2003 to 2010
D B Sandhu 100,000 - - 100,000 16.00 2004 to 2011
D B Sandhu 67,500 - - 67,500 25.00 2005 to 2012
D B Sandhu 150,000 - - 150,000 27.50 2006 to 2013
D B Sandhu 100,000 - - 100,000 30.50 2007 to 2014
D B Sandhu - 350,000 - 350,000 24.25 2008 to 2015
G M Orme 100,000 - - 100,000 25.00 2005 to 2012
G M Orme 150,000 - - 150,000 27.50 2006 to 2013
G M Orme 100,000 - (100,000) - 30.50 2007 to 2014
D B Bergenroth - 250,000 - 250,000 24.25 2008 to 2015
P J Harrison - 250,000 - 250,000 24.25 2008 to 2015
No share options were exercised by the Directors during the period.
The market price of the shares at 30 June 2006 was 15.00p and the high and low for the year were 27.50p and 15.00p
respectively.
The share options granted during the year will vest:
1. In full if the average share price (based on mid market prices derived from the Stock Exchange Daily Official List) for 
the 90 days preceding 23 December 2008 is at least 50p; or
2. In full if cumulative earnings per share before goodwill amortisation and exceptional costs or revenue, calculated 
under UK GAAP , in the three years to June 2008 reach or exceed 10p; or as to 50% if cumulative EPS on the same 
basis reaches 7.5p, increasing proportionately up to 10p.
5. Employees
Staff costs, including Executive Directors, during the period were as follows:
Year ended Year ended
30 June 26 June
2006 2005
£’000 £’000
Wages and salaries 3,682 3,895
Social security costs 404 366
Other pension costs (defined contribution scheme) 87 85
-------------------- --------------------
4,173 4,346
-------------------- --------------------
-------------------- -------------------- 31
5. Employees (continued) Year ended Year ended
30 June 26 June
2006 2005
£’000 £’000
Average monthly number of persons employed No No
Operations and claims 160 152
Administration and selling 63 46
-------------------- --------------------
223 198
-------------------- --------------------
-------------------- --------------------
6. Group operating profit/(loss) 
Year ended Year ended
30 June 26 June
2006 2005
£’000 £’000
Operating profit/(loss) is stated after charging/(crediting):
Operating lease rentals 
Plant and Machinery 266 149
Land and Buildings 183 192
Auditors’ remuneration:
Audit (Company £7,000 (2005: £7,000)) 39 44
T axation services – compliance and advisory 10 25
Other services – IT review 22 49
Amortisation of goodwill 539 539
Depreciation of tangible fixed assets 431 285
Profit on disposal of tangible fixed assets - (27)
-------------------- --------------------
-------------------- --------------------
7. Interest payable and similar charges
Year ended Year ended
30 June 26 June
2006 2005
£’000 £’000
Interest on bank loans and overdrafts 325 280
Hire purchase and finance lease costs 71 13
Other interest 5 -
-------------------- --------------------
401 293
-------------------- --------------------
-------------------- --------------------
8. Taxation 
Year ended Year ended
30 June 26 June
2006 2005
£’000 £’000
Deferred taxation
Net origination/(reversal) of timing differences 416 (19)
-------------------- --------------------
Tax charge/(credit) on profit on ordinary activities 416 (19)
-------------------- --------------------
-------------------- -------------------- 32
Notes to the Financial Statements (continued)
For the year ended 30 June 2006
8. Taxation (continued)
Year ended Year ended
30 June 26 June
2006 2005
Current tax reconciliation £’000 £’000
Profit/(loss) on ordinary activities before taxation 913 (468)
-------------------- --------------------
-------------------- --------------------
Theoretical tax at UK corporation tax rate of 30% (2005: 30%) 274 (140)
Effects of:
Expenditure not tax deductible 128 200
Income not chargeable to corporation tax - (38)
Utilisation of losses (495) 364
Accelerated capital allowances 12 (339)
Short term timing differences 67 22
Movement on deferred tax not provided 14 (69)
-------------------- --------------------
Actual current taxation charge - -
-------------------- --------------------
-------------------- --------------------
The Group’s effective rate of tax in the future will be influenced by the Group’s ability to recover unrelieved losses (further
details of which are included in note 14) and any changes in the standard rate of corporation tax.
9. Dividends
Year ended Year ended
30 June 26 June
2006 2005
£’000 £’000
Equity dividends
Ordinary shares of 10p each
- Interim dividends paid of 0.20p per share (2005: nil p) 123 -
- Final dividends paid of 0.25p (2005: 0.25p) 153 153
-------------------- --------------------
276 153
-------------------- --------------------
-------------------- --------------------
The Directors propose a final dividend of £153,000 (0.25p per ordinary share) payable on 4 January 2007. The accounts
for the year do not reflect the proposed dividend which will be treated as an appropriation of profit in the accounts to 30
June 2007. 33
10. Earnings per share
Year ended 30 June 2006 Year ended 26 June 2005
Earnings Weighted EPS Earnings Weighted EPS
average average
number of number of
shares shares
FRS 22 basis £’000 ’000 P £’000 ‘000 P
Basic earnings per share 497 61,332 0.81 (449) 61,255 (0.73)
Dilutive effect of options - 174 - ---
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Diluted earnings per share 497 61,506 0.81 (449) 61,255 (0.73)
-------------------- -------------------- -------------------- -------------------- -------------------- ---------------------
-------------------- -------------------- -------------------- -------------------- -------------------- ---------------------
Adjusted to exclude 
goodwill amortisation
Basic – FRS 22 basis 497 61,332 0.81 (449) 61,255 (0.73)
Goodwill amortisation 539 - 0.88 539 - 0.88
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted basic 
earnings per share 1,036 61,332 1.69 90 61,255 0.15
Dilutive effect of options - 174 (0.01) - 388 -
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted diluted 
earnings per share 1,036 61,506 1.68 90 61,643 0.15
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted earnings per share calculated on post tax earnings before goodwill amortisation is reported above to inform
market professionals and investment analysts who will include this measure as part of their assessment of the Group’s
financial performance for the period. As the Group made a loss in the year ended 26 June 2005, outstanding share
options are non-dilutive on the basic earnings per share balance. 34
Notes to the Financial Statements (continued)
For the year ended 30 June 2006
11. Intangible assets
Goodwill
The Group
£’000
Cost
At 27 June 2005 and 30 June 2006 11,697
--------------------
Amortisation
At 27 June 2005 4,432
Charged in the period 539
--------------------
At 30 June 2006 4,971
--------------------
Net book value
At 30 June 2006 6,726
--------------------
--------------------
At 26 June 2005 7,265
--------------------
--------------------
Goodwill
The Company
£’000
Cost
A 27 June 2005 and 30 June 2006 366
--------------------
Amortisation
At 27 June 2005 82
Charged in the period 19
--------------------
At 30 June 2006 101
--------------------
Net book value
At 30 June 2006 265
--------------------
--------------------
At 26 June 2005 284
--------------------
-------------------- 35
12. Tangible fixed assets
Plant Assets in
Leasehold fixtures the course
land and Computer and of
buildings equipment equipment construction T otal
The Group £’000 £’000 £’000 £’000 £’000
Cost 
At 27 June 2005 1,985 658 584 108 3,335
Additions 27 557 85 897 1,566
T ransfer 26 321 72 (419) -
-------------------- -------------------- -------------------- -------------------- --------------------
At 30 June 2006 2,038 1,536 741 586 4,901
-------------------- -------------------- -------------------- -------------------- --------------------
Depreciation
At 27 June 2005 59 479 266 - 804
Charge for year 87 217 127 - 431
- ------------------- -------------------- -------------------- -------------------- --------------------
At 30 June 2006 146 696 393 - 1,235
------------------- -------------------- -------------------- -------------------- --------------------
Net book value
At 30 June 2006 1,892 840 348 586 3,666
------------------- -------------------- -------------------- -------------------- --------------------
------------------- -------------------- -------------------- -------------------- --------------------
At 26 June 2005 1,926 179 318 108 2,531
------------------- -------------------- -------------------- -------------------- --------------------
------------------- -------------------- -------------------- -------------------- --------------------
Assets in the course of construction represent initial third party and internal costs incurred for the replacement of the
Group’s operational and claims system, which is scheduled to be implemented during 2006/07. Further capital has been
committed as set out in Note 25 for replacement of the Group’s operational and claims systems.
T angible fixed assets include computer and telecommunications equipment held under finance lease agreements. Further
computer and telecommunications equipment was acquired in the year under finance lease agreements. At 30 June 2006
the net book value of all such assets was £547,315 (2005: £290,549); the depreciation charge in the year to date relating
to such assets was £158,244 (2005: £83,499). 36
Notes to the Financial Statements (continued)
For the year ended 30 June 2006
12. Tangible fixed assets (continued)
Leasehold
land and
buildings
The Company £’000
Cost
At 27 June 2005 and 30 June 2006 1,719
--------------------
Depreciation
At 27 June 2005 38
Charge for year 57
--------------------
At 30 June 2006 95
-------------------
Net book value
At 30 June 2006 1,624
--------------------
--------------------
At 26 June 2005 1,681
--------------------
--------------------
13. Investments
Shares in
group
The Company undertakings
£’000
Cost
At 27 June 2005 and 30 June 2006 4,414
--------------------
Provisions
At 27 June 2005 and 30 June 2006 805
--------------------
Net book value
At 30 June 2006 3,609
--------------------
--------------------
At 26 June 2005 3,609
--------------------
-------------------- 37
13. Investments (continued)
Principal subsidiaries Parent and Group interest in Principal
ordinary shares and voting rights activity
Auto Indemnity (UK) Limited 100% Accident Management
Colegate Vehicle Hire Limited 100% Non-trading
Motor Hire (Diss) Limited 100% Non-trading
Colegate Accident Assistance Limited 100% Non-trading
Auto Indemnity (UK) Limited provides a range of services covering all the key aspects of any motor insurance claim. 
These include the management of Accident Management Services, Cost Containment, Claims Recovery, Vehicle Repair,
Replacement Vehicles and Personal Injury Claims Managements.
All companies are incorporated in England and Wales.
Auto Indemnity (UK) Limited has a year end consistent with Ai Claims Solutions PLC. Colegate Vehicle Hire Limited,
Motor Hire (Diss) Limited and Colegate Accident Assistance Limited, which are non-trading companies, also have a year
end consistent with Ai Claims Solutions PLC.
14. Debtors
Group Company
30 June 26 June 30 June 26 June
2006 2005 2006 2005
£’000 £’000 £’000 £’000
Trade debtors 8,319 11,121 - -
Amounts owed by group undertakings - - 3,422 3,538
Other debtors 406 256 81 63
Prepayments 691 187 - -
Accrued income 2,973 4,481 - -
Deferred tax asset 1,053 1,469 21 21
-------------------- -------------------- - ------------------- --------------------
13,442 17,514 3,524 3,622
-------------------- -------------------- -------------------- --------------------
-------------------- -------------------- -------------------- --------------------
The deferred tax asset consists of:
Group Company
30 June 26 June 30 June 26 June
2006 2005 2006 2005
£’000 £’000 £’000 £’000
Accelerated capital allowances 6 (6) - -
Short term timing difference 124 57 -
Losses 923 1,418 21 21
-------------------- -------------------- -------------------- --------------------
1,053 1,469 21 21
-------------------- -------------------- -------------------- --------------------
-------------------- -------------------- -------------------- -------------------- 38
Notes to the Financial Statements (continued)
For the year ended 30 June 2006
14. Debtors (continued)
Deferred 
Tax Asset
£’000
Balance at 26 June 2005 1,469
Amount charged to profit and loss account (416)
--------------------
Balance at 30 June 2006 1,053
--------------------
--------------------
All debtor balances fall due within one year other than the deferred tax asset which is expected to be recovered in part
over more than one year. In addition to the deferred tax balances recognised in the financial statements and detailed
above, the Company and the Group have unprovided deferred tax asset balances of £232,000 (2005: £218,000) in
respect of unutilised losses brought forward.
15. Creditors: Amounts falling due within one year
Group Company
30 June 26 June 30 June 26 June
2006 2005 2006 2005
(Restated) (Restated)
£’000 £’000 £’000 £’000
Hire purchase & finance lease obligations 308 123 - -
Bank overdraft 2,174 5,019 - -
Bank loan 54 82 54 82
-------------------- -------------------- -------------------- --------------------
Borrowings 2,536 5,224 54 82
Trade creditors 3,146 4,030 3 65
Other taxation and social security 2,142 2,151 - -
Other creditors 17 616 20 54
Accruals 3,315 2,931 40 20
-------------------- -------------------- -------------------- --------------------
11,156 14,952 117 221
-------------------- -------------------- -------------------- --------------------
-------------------- -------------------- -------------------- --------------------
Hire purchase and finance lease obligations are secured on the assets financed.
The Group has a bank overdraft incorporating a revolving credit facility and property loan with Yorkshire Bank. These are
secured by a fixed and floating charge over the assets of the Group.
The Company has entered into an unlimited cross guarantee with a subsidiary company and a legal mortgage and
mortgage debenture in relation to banking facilities with Yorkshire Bank. At 30 June 2006 borrowings subject to this
guarantee amounted to £2,174,000 (2005: £5,019,000).
The bank loan is repayable over 14 years 6 months and interest is payable at 1.5% over bank base rate. 39
16. Creditors: Amounts falling due after one year
Group Company
30 June 26 June 30 June 26 June
2006 2005 2006 2005
£’000 £’000 £’000 £’000
Hire purchase and finance lease obligations 174 165 - -
Bank loan 1,108 1,105 1,108 1,105
--------------------- -------------------- --------------------- --------------------
1,282 1,270 1,108 1,105
--------------------- -------------------- --------------------- --------------------
--------------------- -------------------- --------------------- --------------------
The maturity of obligations under hire purchase and finance leases and on the bank loan are as follows:
Group Company
30 June 26 June 30 June 26 June
2006 2005 2006 2005
£’000 £’000 £’000 £’000
Within one year 308 123 - -
Within one to two years 114 108 - -
Within two to five years 60 57 - -
--------------------- -------------------- -------------------- --------------------
Hire purchase and finance lease obligations 482 288 - -
--------------------- -------------------- -------------------- --------------------
--------------------- -------------------- -------------------- --------------------
Within one year 54 82 54 82
Within one to two years 54 54 54 54
Within two to five years 162 162 162 162
After five years 892 889 892 889
--------------------- -------------------- -------------------- --------------------
Bank loan 1,162 1,187 1,162 1,187
--------------------- -------------------- -------------------- --------------------
--------------------- -------------------- -------------------- --------------------
17. Financial assets and liabilities
The Board policy on derivatives and financial instruments is explained in the Group Finance Director’s Report.
The only financial asset, excluding debtors due within one year, material enough to warrant disclosure is cash at bank, which
attracts interest at rates which vary with prevailing bank rates. All amounts are held in sterling. In the opinion of the Directors,
the fair value of these financial assets and the Group’s financial liabilities is not materially different to their book value.
The bank overdraft bears interest at variable rates linked to Yorkshire Bank’s base rate.
The total amount of the Group’s committed facilities available as at 30 June 2006 was up to a maximum of £10m
expiring in one year or less (2005: £5m expiring in one year or less).
The hire purchase and finance lease arrangements are all at fixed rates of interest. The weighted average rate was
4.42%. The majority of hire purchase and finance lease arrangements are three years. 40
Notes to the Financial Statements (continued)
For the year ended 30 June 2006
18. Share Capital
30 June 26 June
2006 2005
£’000 £’000
Authorised
85,000,000 Ordinary shares of 10p each (2005: 77,559,480) 8,500 7,756
-------------------- --------------------
-------------------- --------------------
Allotted, called up and fully paid
61,357,022 Ordinary shares of 10p each (2005: 61,277,022) 6,136 6,128
-------------------- --------------------
-------------------- --------------------
During the period 80,000 share options were exercised at 22.75p and new shares issued for cash on 6th October 2005.
19. Capital and reserves
Share Profit
Share premium and loss
Capital account account T otal
(Restated)
The Group £’000 £’000 £’000 £’000
Balance at 26 June 2005 6,128 1,568 3,470 11,166
Profit for period - - 497 497
Dividend declared in the period - - (276) (276)
Issue of new share capital 8 5 - 13
-------------------- -------------------- -------------------- --------------------
Balance at 30 June 2006 6,136 1,573 3,691 11,400
-------------------- -------------------- -------------------- --------------------
-------------------- -------------------- -------------------- --------------------
The Company
Balance at 26 June 2005 6,128 1,568 252 7,948
Profit for period - - 116 116
Dividend declared in the period - - (276) (276)
Issue of new share capital 8 5 - 13
-------------------- -------------------- -------------------- --------------------
Balance at 30 June 2006 6,136 1,573 92 7,801
-------------------- -------------------- -------------------- --------------------
-------------------- -------------------- -------------------- --------------------
As permitted by Section 230 of the Companies Act 1985, the profit and loss account of the parent Company has not
been separately presented in the financial statements. During the accounting period the Company made a profit before
dividends of £116,000 (2005: profit of £66,000). 41
19. Capital and reserves (continued)
Share options
The following options are outstanding under the Company’s unapproved and approved share option schemes. There are
no individual performance criteria. Options include Directors’ share options. All options were granted at market value at
the date of grant.
Number of Exercise Normally exercisable
options price
(pence)
1,002,000 42.00 2002 to 2009
247,000 19.00 2003 to 2010
400,000 16.00 2004 to 2011
285,000 25.00 2005 to 2012
528,000 27.50 2006 to 2013
25,000 34.00 2007 to 2014
240,000 30.50 2007 to 2014
922,500 24.25 2008 to 2015
In accordance with UITF25, provision has been made at the balance sheet date for the employer’s NI arising on the
exercise of unapproved options.
Further details of share options in respect of Directors are included in note 4.
20. Reconciliation of movements in equity shareholders’ funds
Year ended Year ended
30 June 26 June
2006 2005
£’000 £’000
(Restated)
Group
Profit/(loss) after taxation 497 (449)
Dividends paid (276) (153)
Net proceeds of share issue 13 12
-------------------- --------------------
Increase/(decrease) in shareholders’ funds 234 (590)
Opening shareholders’ funds 11,166 11,756
-------------------- --------------------
Closing shareholders’ funds 11,400 11,166
-------------------- --------------------
-------------------- --------------------
Opening shareholders’ funds as originally reported 11,013 11,603
Effect of adopting FRS 21 (note 26) 153 153
-------------------- --------------------
Opening shareholders’ funds as restated 11,166 11,756
-------------------- --------------------
-------------------- -------------------- 42
Notes to the Financial Statements (continued)
For the year ended 30 June 2006
20. Reconciliation of movements in equity shareholders’ funds (continued)
Year ended Year ended
30 June 26 June
2006 2005
(Restated)
Company £’000 £’000
Profit after taxation 116 66
Dividends declared (276) (153)
Net proceeds of share issue 13 12
-------------------- --------------------
Decrease in shareholders’ funds (147) (75)
Opening shareholders’ funds 7,948 8,023
-------------------- --------------------
Closing shareholders’ funds 7,801 7,948
-------------------- --------------------
-------------------- --------------------
Opening shareholders’ funds as originally reported 7,795 7,870
Effect of adopting FRS 21 (note 26) 153 153
-------------------- --------------------
Opening shareholders’ funds as restated 7,948 8,023
-------------------- --------------------
-------------------- --------------------
21. Reconciliation of operating profit/(loss) to operating cash flows
Year ended Year ended
30 June 26 June
2006 2005
£’000 £’000
Operating profit/(loss) 1,314 (178)
Depreciation charges 431 285
Profit on disposal of tangible fixed assets - (27)
Amortisation of goodwill 539 539
Decrease/(increase) in debtors 3,656 (7,136)
(Decrease)/increase in creditors (1,108) 2,827
-------------------- --------------------
Net cash inflow/(outflow) from operating activities 4,832 (3,690)
-------------------- --------------------
-------------------- -------------------- 43
22. Analysis of cash flows 
Year ended Year ended
30 June 26 June
2006 2005
£’000 £’000
Returns on investment and servicing of finance
Interest received - 3
Interest paid (330) (280)
Interest element of finance lease payments (71) (13)
-------------------- --------------------
Net cash outflow (401) (290)
-------------------- --------------------
Capital expenditure
Purchase of tangible fixed assets (1,151) (1,481)
Sale of tangible fixed assets - 1,168
-------------------- --------------------
Net cash outflow (1,151) (313)
-------------------- --------------------
-------------------- --------------------
23. Analysis of net debt
At 26 June Non cash At 30 June
2005 Cash flow movements 2006
£’000 £’000 £’000s £’000
Cash in hand and at bank 78 (74) - 4
Bank overdraft (5,019) 2,845 - (2,174)
-------------------- -------------------- -------------------- --------------------
Net cash (4,941) 2,771 - (2,170)
Bank loan:
Due within one year (82) 28 - (54)
Due after one year (1,105) (3) - (1,108)
Hire purchase and finance leases (288) 221 (415) (482)
-------------------- -------------------- -------------------- --------------------
T otal net debt (6,416) 3,017 (415) (3,814)
-------------------- -------------------- -------------------- --------------------
-------------------- -------------------- -------------------- -------------------- 44
Notes to the Financial Statements (continued)
For the year ended 30 June 2006
24. Pension scheme
The Group has established a defined contribution Group personal pension plan. Contributions to this scheme are charged
in the profit and loss account as they become payable. The assets of this scheme are held separately from those of the
Group in independently administered funds.
25. Commitments
Capital commitments
The Company and Group had contracted capital commitments, in respect of the purchase of the new office facilities,
which have not been provided for in the financial statements as set out below:
30 June 26 June
2006 2005
£’000 £’000
Contracted for, but not provided 335 1,108
-------------------- --------------------
-------------------- --------------------
Authorised, but not contracted for 15 584
-------------------- --------------------
-------------------- --------------------
Operating lease commitments
The payments which the Group is committed to make in the next year under operating leases are as follows:
30 June 26 June
2006 2005
£’000 £’000
Land and buildings leases expiring
Beyond five years 200 172
-------------------- --------------------
-------------------- --------------------
Other operating leases expiring
Within one year 21 40
One to five years 74 118
-------------------- --------------------
95 158
-------------------- --------------------
-------------------- --------------------
26. Prior year adjustments
The annual report and accounts has been prepared using accounting policies that are consistent with those adopted in
the statutory accounts for the year ended 26 June 2005 other than the adoption of ‘FRS 21’ Events after the balance
sheet date and ‘FRS 22’ Earnings per share. Adoption of policies consistent with these standards is required in
accordance with United Kingdom best practice.
The change in policies has resulted in a re-statement of comparative information in respect of dividends declared after the
balance sheet date. The effect is as follows:
•  Brought forward shareholder’s funds at 27 June 2005 have increased by £153,000 (see note 20).
•  Dividend creditors have reduced by £153,000 (see note 15). 45
Five Year Summary
Note: Due to the Group’s change in year end from December to June in 2004, the results presented below for the
12 months ended 27 June 2004, 29 June 2003 and 30 June 2002 have been restated and are unaudited.
2006 2005 2004 2003 2002
£’000 £’000 £’000 £’000 £’000
Unaudited Unaudited Unaudited
(Restated) (Restated) (Restated)
Profit and loss account
T urnover 37,986 36,945 21,509 18,839 10,673
Adjusted profit before taxation – 
before amortisation of goodwill 
and exceptional items 1,452 249 1,745 1,432 309
Profit/(loss) before taxation 913 (468) 1,089 1,126 (129)
Retained profit/(loss) transferred 
to/(from) reserves 221 (602) 667 1,189 (129)
Earnings per share
Basic before amortisation of 
goodwill and exceptional costs 1.69p 0.15p 2.89p 2.98p 0.23p
Basic 0.81p (0.73)p 1.59p 2.44p (0.21)p
Dividend per share 0.45p 0.25p 0.50p 0.50p nil p 46
Notice of Annual General Meeting
Ai CLAIMS SOLUTIONS PLC
(Registered in England No. 1492207)
NOTICE OF ANNUAL GENERAL MEETING
NOTICE is hereby given that the 25th Annual General Meeting of the above-named Company will be held at 52 Bedford
Row, London WC1 4LR at 12.00 noon on 5 December 2006 for the purpose of considering and if thought fit passing the
following Resolutions of which Resolutions 1 to 6 (inclusive) will be proposed as Ordinary Resolutions and Resolutions 7 to
8 will be proposed as Special Resolutions.
ORDINARY RESOLUTIONS
1 T o receive the accounts and the reports of the directors and of the auditors for the year ended 30 June 2006.
2 T o re-appoint the auditors, RSM Robson Rhodes LLP , and to authorise the directors to fix their remuneration.
3 T o re-elect as Director Christopher James Baker who retires by rotation under Article 79 of the Company’s Articles of
Association.
4 T o re-elect as Director Adrian Matthew Palmer who retires by rotation under Article 79 of the Company’s Articles of
Association.
5 That the final dividend recommended by the directors of 0.25 pence per ordinary share for the period ended 30 June
2006 be declared payable on the ordinary shares of the Company to all members whose names appear on the
Register of Members on 15 December 2006 and that such dividend be paid on 4 January 2007.
6 That the directors be generally and unconditionally authorised for the purpose of Section 80 of the Companies Act
1985 (“the Act”)to exercise all powers of the Company to allot relevant securities (within the meaning of Section
80(2) of the Act up to an aggregate nominal amount of £2,045,234 provided that this authority shall expire at the
date of the next Annual General Meeting save that the Company may before such expiry make an offer or
agreement which would or might require relevant securities to be allotted after such expiry and the directors may
allot relevant securities in pursuance of such offer or agreement as if this authority had not expired and so that this
authority is in substitution for and shall replace all existing authorities pursuant to Section 80 which, to the extent not
exercised prior to the passing of this Resolution, are hereby revoked.
SPECIAL RESOLUTIONS
7     That, subject to the passing of Resolution 6, the directors be empowered pursuant to section 95 of the Act to allot
equity securities (within the meaning of Section 94(2) of the Act) for cash pursuant to the authority conferred by
Resolution 6 as if Section 89(1) of the Act did not apply to such allotment provided that this power shall be limited
to allotments of equity securities:-
7.1 in connection with an issue or offer of such securities by way of rights or other pre-emptive offers in favour of holders
of ordinary shares where the equity securities respectively attributable to the interests of such holders are
proportionate (as nearly as may be practicable) to the respective numbers of ordinary shares held by them but
subject to such exclusions or other arrangements as the directors may deem necessary or expedient to deal with
fractional entitlements, record dates, or legal or practical problems under the laws of, or the requirements of any
regulatory authority or stock exchange in, any territory or otherwise howsoever;
7.2 otherwise than pursuant to 7.1 above, up to an aggregate nominal amount of £306,785 
and shall expire on the conclusion of the next Annual General Meeting save that the Company may before such expiry
make an offer or agreement which would or might require equity securities to be allotted after such expiry and the
directors may allot equity securities in pursuance of such offer or agreement as if this power had not expired.
8 That the Company be generally and unconditionally authorised, in accordance with Section 166 of the Act to make
market purchases (within the meaning of Section 163(3) of the Act) of ordinary shares of 10 pence each in the
capital of the Company ("Ordinary Shares") provided that:- 47
8.1 the maximum number of Ordinary Shares hereby authorised to be purchased is 6,135,700 (representing 10 per cent.
of the Company’s issued ordinary share capital);
8.2 the minimum price which may be paid for any such Ordinary Share is 10 pence (exclusive of expenses);
8.3 the maximum price (exclusive of expenses) which may be paid for any such Ordinary Shares shall be not more than
105% of the average of the middle market price of the Ordinary Shares according to the London Stock Exchange
Daily Official List for the five business days immediately preceding the date of purchase;
8.4 this authority shall expire at the conclusion of the Annual General Meeting in 2007 unless such authority is renewed
prior to that time (except in relation to the purchase of Ordinary Shares the contract for which was concluded before
such time and which will or may be executed wholly or partly after such time).
Registered Office: By Order of the Board
Indemnity House Peter J Harrison
Sir Frank Whittle Way Secretary
Blackpool
FY4 2FB 31 October 2006
Notes
1. A member entitled to attend and vote at the meeting convened by the Notice set out above may appoint one or
more proxies to attend and, on a poll, vote on behalf of that member. A proxy need not be a member of the
Company. A proxy form is enclosed. T o be effective a form of proxy must be delivered to the Company's registrars not
later than 48 hours before the time appointed for the meeting or any adjournment thereof, together with any power
of attorney or other authority (or a notarially certified copy or a copy certified in accordance with the Powers of
Attorney Act 1971 thereof) under which it is signed. Appointment of a proxy will not preclude a shareholder from
attending and voting in person.
2. In accordance with Regulation 41 of the Uncertificated Securities Regulations 2001, the Company specifies that only
those shareholders appearing in the Company's register of members as at 6.00 p.m. on 4 December ("the specified
time") shall be entitled to attend and vote at the meeting in respect of the number of shares registered in their name
at the specified time. Changes to the register of members after the specified time shall be disregarded in determining
the rights of any person to attend or vote at the meeting.   Ai Claims Solutions PLC
Indemnity House
Sir Frank Whittle Way
Blackpool
FY4 2FB
T el: 0870 701 0513
Fax: 0870 889 0494
www.aiclaimssolutions.com