15587 10/10/2008 Proof 6 15587 10/10/2008 Proof 6
Netcall plc
10 Harding Way
St Ives
Cambridgeshire
PE27 3WR
t. 01480 495300
www.netcall.com
Netcall plc
Annual report and accounts 2008
Netcall plc Report and accounts 2008
15587NETCALL cvr 4mm spine:Layout 1  14/10/08  16:39  Page 1 15587 10/10/2008 Proof 6 15587 10/10/2008 Proof 6
CONTENTS
Highlights 1
Chairman’s Statement 2
Chief Executive’s Review 3
Officers and Professional Advisers 6
Report of the Directors 7
Report of the Independent Auditor 11
Consolidated Income Statement 12
Consolidated Balance Sheet 13
Consolidated Statement of Changes in Equity 14
Consolidated Cash Flow Statement 15
Notes to the Financial Statements 16
Company Balance Sheet 33
Notes to the Company Financial Statements 34
Notice of Annual General Meeting 38
Form of Proxy 39
15587NETCALL cvr 4mm spine:Layout 1  14/10/08  16:39  Page 2 Financial Highlights
•
Revenue of £3.60 million (2007: £4.11 million)
•
Gross profit margin increased to 89% (2007: 87%)
•
Operating costs, excluding share-based charges, decreased to £2.64 million
(2007: £2.77 million)
•
Profit before share-based charges and tax £0.71 million (2007: £0.90 million)
•
Cash position improved 24% to £2.92 million (2007: £2.36 million)
•
Net assets increased by 47% to £3.95 million (2007: £2.68 million)
Operational Highlights
•
Continued expansion of customer base, including contracts with Interflora,
Virgin Holidays and Lloyds TSB
•
New strategic partnership with Cable & Wireless enhances Netcall’s market
reach
•
Proportion of revenues from distribution channels continued to grow,
accounting for 52% of total revenues (2007: 47%)
•
During the year QueueBuster saved the public more than 500 years of
telephone queuing
“We are so pleased that the success has been visible from the start. When you are
dealing with people’s precious holiday time you want to give them the best service
available, and QueueBuster allows us to do that.”
Virgin Holidays
Ron Elder, Chairman of Netcall, commented: 
“Netcall continues to occupy a leading position in a niche market, 
adding a wide range of new customers during the year and increasing
our market reach through partnerships and distribution channels. Whilst
lower activity levels among some of our customers has had a short-term
impact on our top-line, our cash position continues to strengthen and we
are pleased with the operational strength of the Group. We are confident
that Netcall is well positioned to withstand the current economic climate.
We have had an encouraging start to the new financial year and we shall
contine to seek new opportunities to broaden our market reach, develop
our products in anticipation of market demand and explore all avenues to
deliver enhanced shareholder value.”
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Report and accounts 2008 01
15587NETCALL:Layout 1  10/10/08  06:59  Page 1 Netcall has made good operational progress this year and achieved
this in a business environment which has been much more
demanding than previously, and it is clear that while Netcall has been
resilient, the Group has not been immune to the wider economic
downturn. The second half of the financial year showed improvement
and we continue to make solid progress, positioning us well to
achieve growth in the future. 
We have continued to sign new customers and our customer base is
broader than ever covering the financial sector, communications,
utilities, retail and the government sectors amongst others. With our
strong cash position, we therefore believe we are well positioned to
weather the current downturn and benefit from any changes in 
overall market conditions. The Group’s cash position continues to
strengthen and increased by 24% during the year to £2.92 million
(2007 — £2.68 million)
The figures reported today for the year to 30th June 2008 resulted in
revenues for the year of £3.6 million. Encouragingly revenues in the
second half grew by 13% when compared to the first half and
accordingly profit margins were restored.
Gross margins for the year grew to 89% (2007 — 87%) which
combined with a reduction in operating costs by 4% to £2.6 million
(2007 — £2.8 million) contributed to the Group achieving a solid profit
margin and generating significant cash.
It is clear that the strategy implemented in 2005, to move towards the
delivery of our products via a Software as a Service (SaaS) model, is
providing a robust stream of recurring revenues, reducing our reliance
on large licence deals, whilst at the same time increasing our market
reach through channel partners. This is enhancing the business in
today’s tough market, and we believe will continue to do so. 
We have had an encouraging start to the new financial year and we
shall continue to seek new opportunities to broaden our market
reach, develop our products in anticipation of market demand and
explore all avenues to deliver enhanced shareholder value.
I would like to take this opportunity to thank the staff and our partners
for their continued support and contribution. Netcall consists of many
talented people, whose dedication to the Group and belief in the
power of our products is fundamental to our robust success. 
Ron Elder, Chairman 
29th September 2008
Chairman’s Statement
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Netcall plc 02
15587NETCALL:Layout 1  10/10/08  06:59  Page 2 Netcall expanded its market footprint during the financial year by an
ongoing acquisition of new customers at a rate similar to the previous
year. This was achieved in a very different and more challenging
market environment where a number of our customers and prospects
experienced significant changes to their businesses which in some
cases had an effect on Netcall. 
Despite these challenges the Group’s overall health improved.
Margins increased which, combined with robust cost management,
resulted in a healthy double-digit profit margin making it the second
best year in the Group’s history. As a result the business has
continued to generate significant amounts of cash thereby improving
the strength of the balance sheet. 
While maintaining its core business strategies Netcall adapted its
execution during the financial year as a response to the changing
market conditions. As a result the Group delivered a significantly
improved performance in the second half compared to the first six
months of the financial year confirming the continued demand for
Netcall’s products.
Financial results
Revenue for the financial year was £3.60 million (2007 — £4.11
million) and the share of revenue from distribution channels grew to
52% of total revenues (2007 — 46%). The revenue split between
hosted services and product sales remained even with hosted
revenues contributing 49% of total revenues at £1.78 million (2007 –
£2.00 million), and product revenues accounting for the remaining
51% at £1.82 million (2007 — £2.11 million). 
Robust cost management resulted in a 4% reduction in administrative
expenses (excluding share based charges of £0.20 million) to 
£2.64 million (2007 — £2.77 million). 
Adjusted profits (profit before share based charges and tax) for the
year of £0.71 million (2007: £0.90 million) were healthy, with the
second half showing a substantial improvement compared to the first
6 months achieving £0.43 million compared to £0.28 million and
consequently the second half year margins returned to the level of 
the previous year. 
Profit before tax was £0.51 million, (2007 — £0.77 million) including
share option charges. Following the first time recognition of a
deferred tax asset the results incorporate a one off tax credit of 
£0.56 million which has resulted in an increase in net profit for the
year to £1.07 million (2007 — £0.77 million). Accordingly earnings per
share have grown to 1.62p (2007 — 1.16p).
These results are the first reported fully adopting IFRS. Following this
adoption there has been no significant change to previously reported
results.
Cash generated from operations for the year was £0.43 million 
(2007 — £0.64 million) and the Group’s net funds increased by 24%
to £2.92 million as at 30th June 2008 (2007 — £2.36 million).
Net assets increased by 47% to £3.95 million (2007 — £2.68 million),
reflecting the underlying strength and resilience of the Group and 
its strategy. 
Chief Executive’s Review
“After the outstanding success of QueueBuster in our Nottingham sales based call
centre we are now expanding the use of QueueBuster to our customer care site
based in Sleaford. We are so delighted with the success we have already had in
such a short space of time.”
Interflora
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Report and accounts 2008 03
15587NETCALL:Layout 1  10/10/08  06:59  Page 3 Review of Operations
Products
Netcall is the leading specialist in callback, auto-messaging and
contact solutions for companies of all sizes. The Group designs,
develops and supplies a range of innovative communication solutions
to organisations focusing on enhancing client businesses by: 
•
Improving operational efficiency 
•
Improving customer experience and satisfaction 
•
Increasing sales 
•
Improving employee morale 
All Netcall applications run on the Group’s Intelligent Communications
Platform (ICP), which has been built based on industry standards to
ensure full cross-platform compliance. Netcall has integrated its
solutions with all leading Automatic Call Dialing platforms, Carrier
switches, Network Routing and Computer Telephony Integration
Systems. During the financial year Netcall became a Gold member of
the Avaya developer program and also received the Cisco Technology
Development Program accreditation.
The Group’s ICP runs both on hardware at a client’s location or as a
supported service, hosted remotely and delivered as a Software as a
Service (SaaS) solution, enabling a rapid low-cost, low-risk and
flexible set-up with no capital investment. 
Netcall’s flagship product, QueueBuster, eliminates the need for
customers to be kept waiting on hold by contact centres by taking
the callers place in the queue and providing them with an automatic
call back when an agent is free. QueueBuster, delivering millions of
call backs, continued to provide excellent results for our customers
during the year by improving efficiencies, helping to drive sales and
improve customer service. During the year QueueBuster has saved
the public over 500 years of queuing.
Market
There continues to be a solid and ongoing requirement for
organisations and their contact centres to improve efficiencies and
customer service. In parallel consumers repeatedly rate waiting in call
centre queues as one of the biggest causes of customer
dissatisfaction. These are key issues that QueueBuster addresses for
the Group’s customers. 
Whilst the broader economic climate had an impact on a number of
customers and prospects, the core benefits that Netcall’s solutions
provide remain in demand resulting in the ongoing acquisition of new
customers. 
Expanded customer base 
Netcall acquired a number of new customers directly or via channel
partners during the year including Interflora and Virgin Holidays and
also expanded its footprint within its existing customer base, for
example, at Lloyds TSB. As a result the number of new customer
acquisitions remained stable compared to the previous year. However
the business was affected by reduced activity levels at some of our
customers which in turn impacted the recurring revenue stream and
delayed some purchase decisions.
Chief Executive’s Review continued
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Netcall plc 04
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15587NETCALL:Layout 1  10/10/08  06:59  Page 4 “We looked at a number of different solutions and the QueueBuster on-demand
solution was the one that really stood out in terms of the benefits offered, and
perfectly fitted our company requirements.”
Bournemouth & West Hampshire Water
Channel partnerships
The Group’s continued focus on expanding its market reach via
distribution partners has seen the proportion of total revenues
received from channel partnerships continue to grow to 52% 
(2007 —  46%). A significant development was the announcement of
a new partnership agreement with Cable & Wireless Europe, Asia and
US to integrate a hosted platform into its existing infrastructure to
deliver Netcall’s flagship product QueueBuster as part of its product
and service portfolio. This agreement started showing initial rewards
during the second half of the year with a number of new customers
signing up as a result of this relationship.
Strategy
Netcall’s ambition remains to increase the market acceptance of its
products and to work with distribution partners to achieve broader
market reach. The Group will continue its focus on business models
which generate a high element of recurring revenue thereby improving
future revenue visibility. 
By pursuing this business model, Netcall has transformed over the
past few years from a volatile license business model to one which
focuses on a high element of recurring and visible revenue which
continues to be converted into profit and cash. 
By staying focused on the long term strategy for growth, the Board is
confident that Netcall will achieve long term success and the Group
continues to explore all avenues to generate significant value for our
shareholders in the process.
Current Trading
The uptake of Netcall’s products is continuing to expand within our
existing customer base, and we are also seeing sign up with
additional blue chip organisations. I am pleased to report that the first
quarter is ahead of the same period last year, and this combined with
our continued cash generation, healthy balance sheet and ongoing
customer wins is encouraging for the future.
I would also like to thank the staff and our partners for their continued
support and contribution.
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Report and accounts 2008 05
15587NETCALL:Layout 1  10/10/08  06:59  Page 5 Chairman 
Ron Elder*† (58) joined the Board in May 2003.
He was previously chief executive officer of property-asset
management and Nasdaq-listed business, Omega Worldwide. Ron
has also held senior executive positions with Zurich Financial
Services, Crawfords (a New York stock exchange listed Company),
The First Personal Bank (now G E Capital Bank) and Avis Europe.
Chief Executive Officer 
Henrik Bang (49) joined Netcall in January 2004.
Previously he was Vice-President in GN Netcom 1999–2004, part of
the Danish OMX listed GN Great Nordic Group. Before that he held 
a number of international management positions in IBM and AP
Moller-Maersk Line.
Non-executive Director 
Roger Allsop*† (65) joined the Board in 1987.
He is commercial Director of AIM-listed Tricorn Group PLC, chairman
of Malvair Properties Ltd and was also formerly managing Director of
Westwood Dawes PLC.
* denotes membership of the Audit sub-committee of the Board
† denotes membership of the Remuneration sub-committee of the
Board
Company registration number
1812912
Registered office
10 Harding Way
St Ives
Cambridgeshire
PE27 3WR
Directors
R Allsop
R Elder
H Bang
Secretary
A Pearson-Hurrell
Bankers
National Westminster Bank PLC
Cambridge
Nominated advisers
Evolution Securities Limited
100 Wood Street
London
EC2V 7AN
Registrars
Neville Registrars Limited
Neville House
18 Laurel Lane
Halesowen
B63 3BR
Solicitors
Taylor Vinters
Cambridge
Auditor
Grant Thornton UK LLP
Registered Auditor
Chartered Accountants
Cambridge
Officers and Professional Advisers
15587 10/10/2008 Proof 6
Netcall plc 06
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15587NETCALL:Layout 1  10/10/08  06:59  Page 6 The Directors present their report and the financial statements of the
Group for the year ended 30th June 2008.
Principal activity 
Netcall plc is the parent company of a group of companies which
design, develop and market advanced technologies that enable
businesses to integrate and manage telephony efficiently.
Business review
Details of the Group’s performance are given in the consolidated
income statement on page 12. The position of the Group and the
Company at the end of the year is set out in the balance sheets on
pages 13 and 33. A review of the Group’s performance for the year
ended 30th June 2008 and future developments is contained in the
Chairman’s Statement and the Chief Executive’s Review.
The Directors monitor the progress against the overall Group strategy
using the following key performance indicators which are measured
against budget and forecasts by reference to certain financial key
performance indicators.
2008 2007 2006
Revenues from services (1) 49% 49% 42%
Revenues from channels (2) 51% 46% 37%
Recurring revenues (3) 78% 73% 73%
Gross profit margin (%) (4) 89% 87% 86%
Operating costs before
share charges £’000 (5) 2,643 2,765 2,317
Adjusted operating profits (6) 20% 22% 13%
Operating cash flow £’000 (7) 573 729 523
Total equity £’000 (8) 3,947 2,678 1,798
(1) Revenues from services as % of total revenues
(2) Revenues from channels as % of total revenues.
(3) Revenues from services and product support and maintenance as
a % of total revenues.
(4) Gross profit as % of revenues.
(5) Operating expenses before share option charges.
(6) Operating profits after interest before share-based charges and
taxation as % of revenue.
(7) Cash flow and interest generated by operations.
(8) Share capital and reserves.
Future prospects
The Group anticipates future growth to derive from the growth in
sales of its products and services through increased activity from its
key partners.
The Board believes that hosted services and product support
recurring revenue continues to enhance the robustness in the Group’s
revenue streams across a broader customer base. This, coupled with
its tight control of costs and healthy cash balance, underpins the
Group’s strength in current market conditions.
Dividends
The Directors do not recommend the payment of a dividend 
(2007 — nil).
Research and development
The Group continues an active programme of research and
development to continually enhance its product offerings.
Supplier payment policy
The Group undertakes to make payments to suppliers for goods and
services supplied within the normal credit periods agreed with those
suppliers. It does not follow a specific code or apply a standard
payment practice. The proportion of trade creditors at the year end to
amounts supplied during the year gives an average payment term of
33 days (2007 — 30 days).
Political and charitable contributions
There were no political or charitable donations in the year 
(2007 — nil).
Directors and their interests
The Directors who held office at 30th June 2008 had the following
beneficial interests in the Company’s shares at 30th June 2008 and 
1st July 2007:
Ordinary shares of 5p each
At 30th June At 1st July
2008 2007
Number Number
R Allsop 1,100,000 1,000,000
R Elder 130,000 80,000
H Bang 330,000 255,000
In accordance with the Company’s Articles of Association, R Allsop
retires by rotation and offers himself for re-election.
Report of the Directors
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Report and accounts 2008 07
15587NETCALL:Layout 1  10/10/08  06:59  Page 7 Directors who held office at 30th June 2008 had the following interests in share options over ordinary shares of 5p each:
At 1st July Lapsed/ At 30th June Exercise
2007 Granted cancelled 2008 price Exercisable
R Allsop 100,000 —— 100,000 20p Before 15.02.12
100,000 —— 100,000 10p Before 19.12.12
(1)
R Elder 250,000 —— 250,000 24p Before 26.02.14
(2)
H Bang 400,000 —— 400,000 25p Before 26.02.14
300,000 —— 300,000 5p Before 05.03.16
(3)
720,000 —— 720,000 5p Before 05.03.16
(4)
350,000 —— 350,000 5p Before 05.03.16
(5)
550,000 —— 550,000 5p Before 05.03.16
(6)
250,000 —— 250,000 5p Before 05.03.16
(7)
1,500,000 —— 1,500,000 5p Before 23.05.10
(8)
(1) Option shall not be exercisable until the earlier of the day
immediately following the 10th consecutive trading day on which
the mid-market closing price on the Alternative Investment
Market of the London Stock Exchange of a fully paid ordinary
share of 5 pence in the capital of the Company has reached 
30 pence or a sale of the business.
(2) Option shall not be exercisable until the earlier of the day
immediately following the 10th consecutive trading day on which
the mid-market closing price on the Alternative Investment
Market of the London Stock Exchange of a fully paid ordinary
share of 5 pence in the capital of the Company has reached 35
pence or a sale of the business.
(3) Option shall not be exercisable until the earlier of the day
immediately following the day on which the mid-market closing
price on the Alternative Investment Market of the London Stock
Exchange of a fully paid ordinary share of 5 pence in the capital
of the Company has reached 30 pence or a sale of the business.
(4) Option shall not be exercisable until the earlier of the day
immediately following the day on which the mid-market closing
price on the Alternative Investment Market of the London Stock
Exchange of a fully paid ordinary share of 5 pence in the capital
of the Company has reached 35 pence or a sale of the business.
(5) Option shall not be exercisable until the earlier of the day
immediately following the day on which the mid-market closing
price on the Alternative Investment Market of the London Stock
Exchange of a fully paid ordinary share of 5 pence in the capital
of the Company has reached 40 pence or a sale of the business.
(6) Option shall not be exercisable until the earlier of the day
immediately following the day on which the mid-market closing
price on the Alternative Investment Market of the London Stock
Exchange of a fully paid ordinary share of 5 pence in the capital
of the Company has reached 45 pence or a sale of the business.
(7) Option shall not be exercisable until the earlier of the day
immediately following the day on which the mid-market closing
price on the Alternative Investment Market of the London Stock
Exchange of a fully paid ordinary share of 5 pence in the capital
of the Company has reached 50 pence or a sale of the business.
(8) Option shall not be exercisable until the earlier of the day
immediately following the 20th consecutive trading day on which
the mid-market closing price on the Alternative Investment
Market of the London Stock Exchange of a fully paid ordinary
share of 5 pence in the capital of the Company has reached 
50 pence or a sale of the business.
The market price of the Company’s shares at 30th June 2008 was 
9p and the range during the year ended 30th June 2008 was 9p 
to 30.6p.
Report of the Directors continued
15587 10/10/2008 Proof 6
Netcall plc 08
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15587NETCALL:Layout 1  10/10/08  06:59  Page 8 Substantial interests
At 19th September 2008 the following interests of 3% or more in the issued ordinary share capital, other than Directors, had been notified to
the Company:
Number of shares % of issued
Gartmore Investment Management 15,069,882 22.82%
Bluehone Investors LLP 5,940,242 8.99%
J Patoff 4,249,411 6.43%
Portside Holdings 3,500,000 5.30%
J Rubins 2,970,000 4.50%
Edenfield Investments Limited 2,841,362 4.30%
Directors’ and officers’ liability insurance
The Company maintains insurance cover for the Directors and key
personnel against liabilities which may be incurred by them while
carrying out their duties.
Financial risk management objectives and policies
The main purpose of the Group’s financial instruments is to raise
finance for its operations. It is not the Group’s policy to trade in
financial instruments, although strategic acquisitions may be made
where it is considered that they will further the Group’s objectives.
(a) Liquidity and interest rate risk
The Group finances its operations primarily through the issue of share
capital. Funds from the issue of share capital are on deposit to
maximise the interest obtained from them whilst providing sufficiently
flexible access to the funds to meet the Group’s requirements. The
deposits are on floating interest rates based on bank base rates.
(b) Foreign currency risk
Overseas sales to customers are priced in sterling but invoiced in the
currencies of the customers involved. Any exchange gains or losses
arising from the settlement of these transactions are dealt with in the
profit and loss account.
Directors’ responsibilities for the financial statements
The Directors are responsible for preparing the Annual Report and the
financial statements in accordance with applicable law and
regulations.
Company law requires the Directors to prepare financial statements
for each financial year. Under that law the Directors have elected to
prepare the consolidated financial statements in accordance with
International Financial Reporting Standards and the parent Company
accounts in accordance with United Kingdom Accounting Standards
(United Kingdom Generally Accepted Accounting Practice). The
financial statements are required by law to give a true and fair view of
the state of affairs of the Group and parent Company and of the profit
or loss of the Group for that year. In preparing these financial
statements, the Directors are required to:
•
Select suitable accounting policies and then apply them
consistently.
•
Make judgements and estimates that are reasonable and prudent.
•
State whether applicable International Financial Reporting
Standards for the Group and UK Accounting Standards for the
Parent Company have been followed, subject to any material
departures disclosed and explained in the financial statements.
•
Prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping proper accounting records
that 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 Company and hence
for taking reasonable steps for the prevention and detection of fraud
and other irregularities.
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Report and accounts 2008 09
15587NETCALL:Layout 1  10/10/08  06:59  Page 9 Corporate governance
The Company is listed on AIM and is therefore not required to comply
with the provisions of the Financial Reporting Council 2006
Combined Code. Nevertheless, the Board is committed to high
standards of Corporate Governance incorporating best practice for a
Group of this size.
•
The Board meets a minimum of eleven times a year; it comprises
one Executive Director and two Non-Executives Directors (one of
whom is the Chairman); it is responsible for setting and
monitoring strategy, reviewing trading performance, ensuring
adequate funding, formulating policy on key issues and reporting
to shareholders. The Board has access to independent advice,
the cost of which is borne by the Company.
•
The Audit Committee meets at least twice a year; it consists of
the Chairman and one Non-Executive Director; the Executive
Director attends the meetings by invitation only; it meets the
external Auditor at least once a year. It reviews the half year and
annual accounts prior to submission to the Board for
consideration, monitors the Company’s controls ensuring integrity
of the financial information reported to shareholders.
•
The Remuneration Committee consists of the Chairman and one
Non-Executive Director and meets at least twice annually. Its
principal functions are to determine the Company policy for
executive remuneration and reward and the granting of share
options to employees.
•
Internal control is maintained by a system of financial controls
designed to meet the particular needs of a Group of this size to
provide appropriate assurance against misstatement or loss. The
Board does not consider it appropriate to set up an Internal Audit
function given the size and nature of the business at this time.
Auditor
In the case of each of the persons who are Directors of the Company
at the date when this report is approved:
•
so far as each of the Directors is aware, there is no relevant audit
information (as defined in the Companies Act 1985) of which the
Company’s Auditor is unaware; and 
•
each of the Directors has taken all the steps that they ought to
have taken as a Director to make themselves aware of any
relevant audit information (as defined) and to establish that the
Company’s Auditor is aware of that information.
This confirmation is given and should be interpreted in accordance
with the provisions of S234ZA of the Companies Act 1985.
Grant Thornton UK LLP have expressed their willingness to continue
in office as Auditor and a resolution to reappoint them will be
proposed at the forthcoming Annual General Meeting.
Approved by the Board of Directors and signed on behalf of the
Board.
H Bang
Director
Report of the Directors continued
15587 10/10/2008 Proof 6
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15587NETCALL:Layout 1  10/10/08  06:59  Page 10 We have audited the Group and Parent Company financial statements
of Netcall plc for the year ended 30th June 2008 which comprise the
consolidated income statement, the consolidated and Parent
Company balance sheets, the consolidated statement of changes in
shareholders’ equity, the consolidated cash flow statement, notes 1
to 30 for the Group and notes 1 to 13 for the Parent Company. These
financial statements have been prepared under the accounting
policies set out therein. 
This report is made solely to the Company’s members, as a body, in
accordance with Section 235 of the Companies Act 1985. Our audit
work has been undertaken so that we might state to the Company’s
members those matters we are required to state to them in an
auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company’s members as a
body, for our audit work, for this report, or for the opinions we have
formed. 
Respective responsibilities of Directors and Auditors
The Directors’ responsibilities for preparing the Annual Report and the
Group financial statements in accordance with United Kingdom law
and International Financial Reporting Standards (IFRSs) as adopted
by the European Union, and for preparing the Parent Company
financial statements in accordance with United Kingdom law and
Accounting Standards (United Kingdom Generally Accepted
Accounting Practice) are set out in the Statement of Directors’
Responsibilities.
Our responsibility is to audit the financial statements in accordance
with relevant legal and regulatory requirements and International
Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements
give a true and fair view and whether the financial statements have
been properly prepared in accordance with the Companies Act 1985.
We also report to you whether in our opinion the information given in
the Report of the Directors is consistent with the financial statements.
The information given in the Report of the Directors includes that
specific information presented in the Chairman’s Statement and the
Chief Executive’s Review that is cross referred from the Business
Review section of the Report of the Directors.
In addition we report to you if, in our opinion, we have not received all
the information and explanations we require for our audit, or if
information specified by law regarding Directors’ remuneration and
other transactions is not disclosed. 
We read other information contained in the Annual Report and
consider whether it is consistent with the audited financial
statements. The other information comprises only the Report of the
Directors, the Chairman’s Statement and the Chief Executive’s
Review. We consider the implications for our report if we become
aware of any apparent misstatements or material inconsistencies with
the financial statements. Our responsibilities do not extend to any
other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards
on Auditing (UK and Ireland) issued by the Auditing Practices Board.
An audit includes examination, on a test basis, of evidence relevant to
the amounts and disclosures in the financial statements. It also
includes an assessment of the significant estimates and judgments
made by the Directors in the preparation of the financial statements,
and of whether the accounting policies are appropriate to the Group’s
and Company’s circumstances, consistently applied and adequately
disclosed.
We planned and performed our audit so as to obtain all the
information and explanations which we considered necessary in order
to provide us with sufficient evidence to give reasonable assurance
that the financial statements are free from material misstatement,
whether caused by fraud or other irregularity or error. In 
forming our opinion we also evaluated the overall adequacy of the
presentation of information in the financial statements.
Opinion
In our opinion:
•
the Group financial statements give a true and fair view, in
accordance with IFRSs as adopted by the European Union and of
the state of the Group’s affairs as at 30th June 2008 and of its
profit for the year then ended;
•
the Group financial statements have been properly prepared in
accordance with the Companies Act 1985; 
•
the Parent Company financial statements give a true and fair
view, in accordance with United Kingdom Generally Accepted
Accounting Practice, of the state of the Parent Company’s affairs
as at 30th June 2008
•
the Parent Company financial statements have been properly
prepared in accordance with the Companies Act 1985; and
•
the information given in the Report of Directors is consistent with
the financial statements.
Grant Thornton UK LLP
Registered Auditor
Chartered Accountants
Cambridge
Report of the Independent Auditor to the Members of Netcall plc
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Report and accounts 2008 11
15587NETCALL:Layout 1  10/10/08  06:59  Page 11 2008 2007
Note £’000 £’000
Revenue 5 3,600.5 4,112.3
Cost of sales (386.6) (535.2)
Gross profit 3,213.9 3,577.1
Administrative charges before share-based charges (2,643.1) (2,765.4)
Share-based charges (200.0) (131.4)
Total administrative expenses (2,843.1) (2,896.8)
Profit before share-based charges 570.8 811.7
Share-based charges 7 (200.0) (131.4)
Profit before interest and tax 6 370.8 680.3
Finance income receivable 8 138.6 92.0
Finance costs payable 8 — (5.3)
Profit for the year before taxation 509.4 767.0
Taxation 9 560.0 —
Net profit for the year 1,069.4 767.0
Attributable to Shareholders of Netcall plc 1,069.4 767.0
Earnings per share
Basic 11 1.62p 1.16p
Diluted 11 1.61p 1.12p
All of the activities of the Group in the current year are classed as continuing.
The accompanying accounting policies and notes form part of these financial statements.
Consolidated Income Statement
Year ended 30th June 2008
12
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Note £’000 £’000
Assets
Non-current assets
Intangible assets 13 37.9 50.9
Property, plant and equipment 14 69.7 115.0
Deferred tax asset 19 560.0 —
667.6 165.9
Current assets
Inventories 15 77.6 38.1
Trade and other receivables 16 1,534.1 1,615.4
Cash and cash equivalents 17 2,915.3 2,360.5
4,527.0 4,014.0
Total assets 5,194.6 4,179.9
Equity
Share capital 20 3,302.5 3,302.5
Share premium account 2.4 2.4
Employee share schemes reserve 441.0 290.9
Profit and loss account 201.4 (917.9)
Total equity 3,947.3 2,677.9
Current liabilities
Trade and other payables 18 1,247.3 1,502.0
Total equity and liabilities 5,194.6 4,179.9
These financial statements were approved by the Board of Directors and authorised for issue on 29th September 2008.
They were signed on its behalf by:
R Elder H Bang
Director Director
The accompanying accounting policies and notes form part of these financial statements.
Consolidated Balance Sheet
As at 30th June 2008
13
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15587NETCALL:Layout 1  10/10/08  06:59  Page 13 Equity attributable to shareholders of Netcall plc:
Special Employee
Share and share Profit
Share premium capital schemes and loss Total 
capital account reserve reserve account equity
£’000 £’000 £’000 £’000 £’000 £’000
Balance at 1st July 2006 3,297.1 15,125.2 245.1 159.5 (17,029.0) 1,797.9
Profit for the year and total recognised income
and expenditure for the year —— —— 767.0 767.0
Allotment of shares 5.4 2.4 —— (26.2) (18.4)
Increase in equity reserve in relation to options issued—— — 131.4 — 131.4
Share premium cancellation — (15,125.2) —— 15,125.2 —
Reclassification of reserves —— (245.1) — 245.1 —
Balance at 30th June 2007 3,302.5 2.4 — 290.9 (917.9) 2,677.9
Profit for the year and total recognised
income and expenditure for the year —— —— 1,069.4 1,069.4
Increase in equity reserve in relation to options issued—— — 200.0 — 200.0
Reclassification following lapse of options (49.9) 49.9 —
Balance at 30th June 2008 3,302.5 2.4 — 441.0 201.4 3,947.3
The accompanying accounting policies and notes form part of these financial statements.
Consolidated Statement of Changes in Equity
As at 30th June 2008
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15587NETCALL:Layout 1  10/10/08  06:59  Page 14 Consolidated Cash Flow Statement
As at 30th June 2008
2008 2007
Note £’000 £’000
Cash generated from operations 22 434.7 642.5
Interest paid — (5.3)
Net cash generated from operations 434.7 637.2
Investing activities
Additions to property, plant and equipment (6.2) (48.5)
Purchase of intangible assets (12.3) (33.8)
Interest received 138.6 92.0
Cash inflow from investing activities 120.1 9.7
Financing activities
Proceeds from share issues — (18.4)
Repayment of long-term borrowings — (87.5)
Cash inflow from financing activities — (105.9)
Net changes in cash and cash equivalents 554.8 541.0
Cash and cash equivalents, beginning of year 2,360.5 1,819.5
Cash and cash equivalents, end of year 2,915.3 2,360.5
The accompanying accounting policies and notes form part of these financial statements.
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15587NETCALL:Layout 1  10/10/08  06:59  Page 15 Notes to the Financial Statements
Year ended 30th June 2008
1 Nature of operations and general information
Netcall plc and its subsidiaries are a Group of companies which design, develop and market advanced technologies that enable
businesses to integrate and manage telephony efficiently.
Netcall plc, a limited liability company, is the Group’s ultimate Parent Company. It is registered in England and Wales. The address of
Netcall plc’s registered office is also its principal place of business. 
The financial statements for the year ended 30th June 2008 (including the reclassified comparatives for the year ended 30th June 2007)
were approved by the Board of Directors on 29th September 2008.
Netcall plc’s shares are listed on the London Stock Exchange’s Alternative Investment Market (AIM). Netcall plc’s consolidated full year
financial statements are presented in British pounds (£), which is also the functional currency of the ultimate Parent Company.
2 Transition to IFRS
Overall considerations
IFRS 1 First-time Adoption of International Financial Reporting Standards sets out the procedures that the Group must follow when it
adopts IFRS for the first time as the basis for preparing its financial statements. The Group established its IFRS accounting policies on its
transition date, 1st July 2006, and applied these to the IFRS opening balance sheet at its date of transition, 1st July 2006.
An explanation of how the transition from UK GAAP to IFRS has affected the Group’s financial position, financial performance and cash
flows is set out below. The transition to IFRS has not resulted in any remeasurement adjustments and a reconciliation of profit is therefore
not included. The transition to IFRS has also not resulted in any change to equity and so a reconciliation of equity is not included.
Reclassification of intangible assets 
Under UK GAAP domain names and software costs were recognised within tangible fixed assets and patent costs in prepayments. There
is no tangible fixed assets category under IFRS and instead there is a category of property, plant and equipment. These costs have
therefore been reclassified in these IFRS financial statements and recognised within intangible assets.
UK GAAP Reclassification IFRS
£’000 £’000 £’000
At 1st July 2006
Non-current assets
Intangible assets — 47.6 47.6
Property, plant and equipment 154.3 (33.6) 120.7
Trade and other receivables 1,052.5 (14.0) 1,038.5
At 30th June 2007
Non-current assets
Intangible assets — 50.9 50.9
Property, plant and equipment 158.5 (43.5) 115.0
Trade and other receivables 1,622.8 (7.4) 1,615.4
Explanation of adjustments to the cash flow statement
The definition of cash is narrower under UK GAAP than under IAS 7 “Cash Flow Statements”. Under IFRS highly liquid investments, readily
convertible to a known amount of cash and with an insignificant risk of changes in value, are regarded as cash equivalents. The cash flow
statement in the last UK GAAP financial statements reported movements in cash. The cash flow statement in these IFRS consolidated
financial statements reports movements in cash and cash equivalents.
Cash and cash equivalents under IFRS include some investments that were recorded as liquid investments under UK GAAP . Cash and
cash equivalents includes £2,000,000 at 30th June 2007 which was accounted for as liquid resources under UK GAAP .
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The overall presentation of the financial statements has been changed further to comply with IAS 1 “Presentation of Financial Statements”
and IAS 7 “Cash Flow Statements”.
IFRS exemptions
IFRS 1 permits companies adopting IFRS for the first time to take certain exemptions from the full requirements of IFRS in the transition
period. These financial statements have been prepared on the basis of taking the following exemptions:
• Business combinations prior to 1st July 2006, the Group’s date of transition to IFRS, have not been restated to comply with IFRS 3
Business Combinations;
• Cumulative translation differences on foreign operations are deemed to be nil at 1st July 2006, any gains and losses recognised in the
consolidated income statement on subsequent disposal of foreign operations will exclude translation differences arising prior to the
transition date; and
• IFRS 2 Share-based payment has only been applied to all grants of equity instruments after 7th November 2002 that were unvested as
of 1st July 2006.
Standards and interpretations currently in issue but not yet effective
The following new Standards and Interpretations, which are yet to become mandatory, have not been applied in the consolidated financial
statements.
Effective for reporting periods
Standard or Interpretation starting on or after
IFRIC 14, IAS 19 The Limit of a Defined Benefit Asset, Minimum Funding Requirements and their Interaction 1st January 2008
IFRIC 12, Service Concession Arrangements 1st January 2008
IFRIC 13, Customer Loyalty Programmes 1st July 2008
IFRIC 16, Hedges of a Net Investment in a Foreign Operation 1st October 2008
IAS 1, Presentation of Financial Statements (revised 2007) 1st January 2009
Improvements to IFRSs 1st January 2009 other than certain
amendments effective 1st July 2009
IAS 23, Borrowing Costs (revised 2007) 1st January 2009
Amendment to IAS 32 Financial Instruments: presentation and IAS 1 Presentation of
Financial statements — Puttable Financial Instruments and obligations arising on Liquidation 1st January 2009
Amendment to IFRS 2 Share-based payment — Vesting Conditions and Cancellations 1st January 2009
IFRS 8 Operating Segments 1st January 2009
Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards and
IAS 27 Consolidated and Separate Financial Statements — Costs of Investment in a Subsidiary,
Jointly Controlled Entity or Associate 1st January 2009
IFRIC 15 Agreements for the Construction of Real Estate 1st January 2009
IFRS 3 Business Combinations (Revised 2008) 1st July 2009
Amendment to IAS 39 Financial Instruments: Recognition and Measurement — Eligible Hedged Items 1st July 2009
IAS 27 Consolidated and Separate Financial Statements (Revised 2008) 1st July 2009
Based on the Group’s current business model and accounting policies, management does not expect material impacts on the
consolidated financial statements when the Standards and Interpretations become effective, except the amendment to IAS 1 and IFRS 8
that will impact on the presentation of the financial statements. The Group does not intend to apply any of these pronouncements early.
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15587NETCALL:Layout 1  10/10/08  06:59  Page 17 Notes to the Financial Statements continued
Year ended 30th June 2008
3 Principal accounting policies
Basis of accounting
These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as
adopted by the European Union (EU).
These financial statements have been prepared under the historical cost convention.
Netcall plc’s consolidated financial statements were prepared in accordance with United Kingdom Accounting Standards (United Kingdom
Generally Accepted Accounting Practice) until 30th June 2007. The date of transition to IFRS was 1st July 2006. The comparative figures
have been restated as a result of adoption of IFRS. The disclosures required by IFRS 1 concerning the transition from UK GAAP to IFRS
are given in the reconciliation schedules, presented and explained in note 2.
The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these financial
statements. The principal accounting policies for the Group are set out below: 
Basis of consolidation
The Group financial statements consolidate those of the Company and all of its subsidiary undertakings using the purchase method of
accounting. Subsidiaries are entities over which the Group has the power to control the financial and operating policies so as to obtain
benefits from its activities. The Group obtains and exercises control through voting rights. Where subsidiary companies are acquired during
the year, the profit or loss attributable to shareholders includes the profits or losses from the date of acquisition. Where subsidiary
companies are disposed of during the year, the profit or loss attributable to shareholders includes the profits or losses to the date of
disposal.
Inter-Company transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Business combinations completed prior to date of transition to IFRS
The Group has elected not to apply IFRS 3 Business Combinations retrospectively to business combinations prior to date of transition.
Accordingly the classification of the combination remains unchanged from that used under UK GAAP . Assets and liabilities are recognised
at date of transition, 1st July 2006 if they would be recognised under IFRS, and are measured using their UK GAAP carrying amount
immediately post-acquisition as deemed cost under IFRS, unless IFRS requires fair value measurement. All acquisitions prior to the date of
transition have been accounted for using the acquisition method except for the acquisition of Netcall Technologies Limited.
When Netcall plc acquired Netcall Technologies Limited in 1996, ordinary shares were issued to form the consideration. The UK GAAP
merger accounting criteria were met and so a merger reserve was recognised. The merger reserve has remained unchanged on transition
to IFRS.
Goodwill
Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the fair value of the
consideration given over the fair value of the identifiable assets and liabilities acquired, is capitalised and carried at cost less accumulated
impairment losses.
Goodwill written off to reserves prior to date of transition to IFRS remains in reserves. There is no reinstatement of goodwill that was
amortised prior to transition to IFRS. Goodwill previously written off to reserves is not written back to profit or loss on subsequent disposal.
Revenue
Revenue is measured by reference to the fair value of consideration received or receivable by the Group for goods supplied and services
provided, excluding VAT. Revenue is recognised upon the performance of services or transfer of risk to the customer.
Product
Product revenue is recognised upon delivery and acceptance by the customer.
Support and maintenance
Support and maintenance revenues are recognised on a straight-line basis over the support and maintenance period.
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Service
Service revenues are recognised on a straight-line basis over the periods defined in the service agreements and where appropriate at time
of delivery. 
Interest
Interest is recognised using the effective interest method which calculates the amortised cost of a financial asset and allocates the interest
income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to the net carrying amount of the financial asset. 
Intangible assets
Domain names, trade marks, patents and software are measured initially at cost and are amortised on a straight-line basis over their
estimated useful life. Carrying amounts are reduced by provisions for impairment where necessary.
Amortisation is provided on a straight-line basis at rates of 20% to 33% per annum, in order to write off the cost, less estimated residual
value, of each asset, over its expected useful economic life.
Property, plant and equipment
Property, plant and equipment is stated at cost, net of depreciation and any provision for impairment.
Disposal of assets
The gain or loss arising on the disposal of an asset is determined as the difference between the disposal proceeds and the carrying
amount of the asset and is recognised in the income statement.
Depreciation
Depreciation is calculated to write down the cost less estimated residual value of property, plant and equipment by equal annual
instalments over their estimated useful economic lives. The rates generally applicable are 20–33% per annum for the fixtures and fittings
and equipment.
Material residual value estimates are updated as required, but at least annually.
Research and development
Expenditure on research (or the research phase of an internal project) is recognised as an expense in the period to which it is incurred.
Development is only recognised as an intangible asset if each of the following conditions have been met:
•
It is reasonably expected that the asset is likely to generate net future economic benefit;
•
Development costs in relation to the asset can be reliably measured;
•
Completion of the intangible asset is technically feasible;
•
The Group intends to complete the intangible asset and use or sell it;
•
The Group has the ability to use the asset or sell it; and
•
There are adequate technical, financial and other resources to complete the development and to use or sell the intangible asset.
Impairment testing of intangible assets and property, plant and equipment
The carrying values of intangibles and property, plant and equipment are reviewed for impairment if events or changes in circumstances
indicate that their carrying value may not be recoverable. Any impairment in the value of intangibles and property, plant and equipment is
charged to the income statement.
Leased assets
All leases are regarded as operating leases and the payments made under them are charged to the income statement on a straight-line
basis over the lease term. Lease incentives are spread over the term of the lease.
Inventories
Inventories are stated at the lower of cost and net realisable value. Costs are assigned using the first in, first out basis.
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15587NETCALL:Layout 1  10/10/08  06:59  Page 19 3 Principal accounting policies continued
Taxation
Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively
enacted at the balance sheet date.
Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the
difference between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial
recognition of goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or
affects tax or accounting profit. Tax losses available to be carried forward as well as other income tax credits to the Group are assessed for
recognition as deferred tax assets and are recognised to the extent that it is regarded as more likely than not that they will be recovered.
Deferred tax liabilities are provided in full, with no discounting.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement.
Financial assets
Trade receivables and other debtors are classified as loans and receivables. Loans and receivables are measured subsequent to initial
recognition at fair value, at amortised cost using the effective interest method, less provision for impairment. Any change in their value
through impairment or reversal of impairment is recognised in the income statement.
Provision against trade receivables is made when there is objective evidence that the Group will not be able to collect all amounts due to it
in accordance with the original terms of those receivables. The amount of the write-down is determined as the difference between the
asset’s carrying amount and the present value of estimated future cash flows.
Available-for-sale financial assets are initially recognised at fair value plus transaction costs. All financial assets within this category are
measured subsequently at fair value, with changes in value recognised in equity, through the statement of changes in equity. Gains and
losses arising from investments classified as available-for-sale are recognised in the income statement when they are sold or when the
investment is impaired. In the case of impairment of available-for-sale assets, any loss previously recognised in equity is transferred to the
income statement. 
An assessment for impairment is undertaken at least at each balance sheet date.
Financial liabilities
Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Group becomes a party to the
contractual provisions of the instrument.
Financial liabilities are recorded initially at fair value and subsequently at amortised cost using the effective interest method, with interest-
related charges recognised as an expense in finance cost in the income statement. 
A financial liability is derecognised only when the obligation is extinguished.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and available on demand deposits.
Equity
Equity comprises the following:
•
“Share capital” represents the nominal value of equity shares;
•
“Share premium” represents the excess over nominal value of the fair value of consideration received for equity shares, net of
expenses of the share issue;
•
“Special and capital reserves” represents amounts set aside following a capital reduction scheme;
•
“Employee share schemes reserve” represents equity-settled share-based employee remuneration until such share options are
exercised; and
•
“Profit and loss reserve” represents retained profits.
Notes to the Financial Statements continued
Year ended 30th June 2008
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Foreign currencies
Transactions in foreign currencies are translated into sterling at the exchange rate ruling at the date of the transaction. Monetary assets
and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date.
Any exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at
which they were initially recorded are recognised in the income statement in the period in which they arise.
The Parent Company’s functional currency is sterling.
The Group has taken advantage of the exemption in IFRS 1 and has deemed cumulative translation differences for all foreign operations to
be nil at the date of transition to IFRS.
Employee benefits
Share based payments
The Group operates a number of employee share schemes under which it makes equity-settled share-based payments to certain
employees. In accordance with the exemptions available under IFRS 1, IFRS 2 has been applied to all grants of equity instruments after 
7th November 2002 that were unvested as of 1st July 2006. 
Where employees are rewarded using share-based payments, the fair values of employees’ services are determined indirectly by reference
to the fair value of the instrument granted to the employee. This fair value is assessed at the grant date, using the Black–Scholes method,
and excludes the impact of non-market vesting conditions. The market vesting conditions are reviewed using the Binomial model.
The expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest.
Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous
estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment is made to any expense
recognised in prior periods if share options ultimately exercised are different to that estimated on vesting.
4 Critical accounting judgements and key sources of estimation and uncertainty 
The key assumptions concerning the future, and other key sources of estimation uncertainty at the Balance Sheet date, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are
discussed below.
Valuation of share-based payments 
In order to determine the valuation of share-based payments, management are required to make an estimation of the effects of non-
transferability, exercise restrictions and behavioural considerations. The expected volatility is determined by calculating the historical
volatility of the Company’s share price over the previous three years. The list of inputs used in the Black–Scholes model to calculate the fair
values are provided in note 21. Where share options have a market condition a Binomial model is used to calculate the fair values.
Recognition of deferred tax 
Management have recognised a deferred tax asset based on the considered future economic benefit of the Group’s past trading losses.
Following three years of profitable trading and based on expected profitability, a tax asset of £560,000 has been recognised at 30th June
2008 (2007: £nil).
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15587NETCALL:Layout 1  10/10/08  06:59  Page 21 5 Segmental analysis
Management consider that there is one primary business segment being the management of telephony efficiency. Analysis of turnover in
its primary business is summarised below:
2008 2007
Geographical analysis by destination £’000 £’000
United Kingdom 3,329.1 3,751.9
Rest of Europe 242.2 161.2
North America 21.8 21.2
Rest of the World 7.4 178.0
3,600.5 4,112.3
6 Profit before taxation
The profit before taxation for the Group is stated after charging:
2008 2007
£’000 £’000
Rentals under operating leases
— Other operating leases 40.0 35.0
— Plant and machinery 3.1 9.5
Depreciation and amortisation
— Intangible assets 25.3 30.5
— Plant and equipment, owned 51.5 54.2
Share-based payments expense (see note 7) 200.0 131.4
Auditor’s professional fees
— Group 39.0 42.5
Analysis of Auditor’s fees
Audit of the Company’s annual accounts 10.0 13.5
Audit of the Company’s subsidiaries 10.0 13.0
20.0 26.5
Non-audit services
— Tax services 3.0 10.0
— Other services 16.0 6.0
Total non-audit fees 19.0 16.0
Notes to the Financial Statements continued
Year ended 30th June 2008
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The Group staff costs, including Directors, during the year were as follows:
2008 2007
£’000 £’000
Wages and salaries 1,601.1 1,777.3
Social security costs 185.8 150.7
1,786.9 1,928.0
The average number of employees in the Group, including all Directors, during the year was as follows:
2008 2007
Number Number
Sales and marketing 10 9
Customer services and development 10 10
Administration 6 6
26 25
Remuneration in respect of Directors
2008 2007
£’000 £’000
Emoluments 255.0 326.1
Highest paid Director
Emoluments 195.0 257.0
No Director was a member of a pension scheme to which the Group contributes in either the current or prior year.
Share-based charges
The number of ordinary shares for which Group employees hold options and the period for which the options are exercised are as follows:
Scheme Period when Price in 2008
Date of grant type exercisable pence Number
19.12.02 EMI 19.12.03–19.12.12 7.25 81,667
19.12.02 EMI 19.12.04–19.12.12 7.25 81,667
19.12.02 EMI 19.12.05–19.12.12 7.25 81,667
26.02.04 EMI 26.02.04–26.02.14 25.0 400,000
23.05.07 EMI 23.05.07–23.05.10 5.0 350,000
08.01.07 EMI 08.01.07–08.01.17 5.0 625,000
15.02.02 Unapproved 15.02.04–15.02.12 20.0 100,000
27.01.03 Unapproved 27.01.03–19.12.12 10.0 100,000
24.05.04 Unapproved 24.05.04–24.05.14 24.0 250,000
06.03.06 Unapproved 06.03.06–05.03.16 5.0 2,170,000
08.01.07 Unapproved 08.01.07–08.01.17 5.0 500,000
23.05.07 Unapproved 23.05.07–23.05.10 5.0 1,500,000
The share-based charges recognised in the consolidated income statement is £200,000 (2007 — £131,400) which includes £164,000 (2007
— £105,000) in respect of Directors
Key management
Key management of the Group is considered to be the Directors of the Company.
Details of their remuneration are set out above in this note 7 and details of their interest in shares of the Company are set out in the
Directors’ Report.
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15587NETCALL:Layout 1  10/10/08  06:59  Page 23 Notes to the Financial Statements continued
Year ended 30th June 2008
8 Finance income and costs
2008 2007
£’000 £’000
Finance income — bank deposits 138.6 92.0
Finance costs — bank loans and overdrafts — (5.3)
138.6 86.7
9 Taxation
Analysis of taxation credit in the year
2008 2007
Current tax: £’000 £’000
UK corporation tax based on the results for the year at 29.5% (2007 — 30%) — —
Deferred tax:
Origination and reversal of temporary differences (note 19) (560.0) —
The relationship between the expected tax expense based on the effective tax rate of the Group at 29.5% (2007 — 30%) and the tax
expense actually recognised in the income statement can be reconciled as follows:
2008 2007
£’000 £’000
Result for the year before taxation 509.4 767.0
Tax rate 29.5% 30%
Expected tax expense 150.3 230.1
Expenses not deductible for tax purposes 61.5 40.7
Differences between capital allowances and depreciation 4.5 0.4
Utilisation of tax losses (243.6) (273.5)
Other short-term temporary differences 0.3 —
Unrecognised tax losses 27.0 2.3
Provision in respect of tax losses (560.0) —
Actual tax (credit)/expense, net (560.0) —
Comprising
Current tax expense — —
Origination and reversal of temporary differences (560.0) —
Total (560.0) —
10 Dividends
The dividends proposed after the year end: £nil (2007 — £nil).
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The calculation of the basic earnings per share is based on the profits attributable to the shareholders of Netcall plc divided by the
weighted average number of shares in issue during the year. All earnings per share calculations relate to continuing operations of 
the Group.
Profits Weighted Basic profit
attributable to average per share
shareholders number amount
£’000 of shares in pence
Year ended 30th June 2008 1,069.4 66,050,937 1.62
Year ended 30th June 2007 767.0 66,014,672 1.16
The calculation of the diluted earnings per share is based on the profits attributable to the shareholders of Netcall plc divided by the
weighted average number of shares in issue during the year, as adjusted for dilutive share options. All earnings per share calculations
relate to continuing operations of the Group.
Diluted profit
per share
Dilutive Anti-dilutive amount
options options in pence
Year ended 30th June 2008 413,000 5,827,000 1.61
Year ended 30th June 2007 5,830,000 600,000 1.12
The reconciliation of average number of ordinary shares used for basic and diluted earnings per share is as below: 
2008 2007
£’000 £’000
Weighted average number of ordinary shares used for basic earnings per share 66,050,937 66,014,672
Weighted average number of ordinary shares under option 412,985 2,485,854
Weighted average number of ordinary shares used for diluted earnings per share 66,463,922 68,500,526
12 Long-term financial assets
The amounts recognised in the balance sheet relate to the following investment types:
Long-term available-for-sale
financial assets
2008 2007
£’000 £’000
Cost:
At 1st July 2007 and 30th June 2008 350.0 350.0
Provision:
At 1st July 2007 and 30th June 2008 350.0 350.0
Net book value:
At 30th June 2007 and 30th June 2008 — —
There is no known value in the long-term financial asset (an investment in a company); accordingly, it has been recorded at cost and fully
provided for.
The Parent Company has investments in a number of subsidiary undertakings; those which principally affect the results and financial
position of the Group are tabled below:
Nature of business
Netcall Telecom Limited Development and marketing of commercial applications derived from the Group’s technology.
To avoid a statement of excessive length, details of the subsidiaries which do not significantly affect the results and financial position of the
Group have been omitted. All subsidiary undertakings are wholly owned and registered in England, except Netcall Telecom Inc., which is
incorporated in the USA.
15587 10/10/2008 Proof 6
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15587NETCALL:Layout 1  10/10/08  06:59  Page 25 Notes to the Financial Statements continued
Year ended 30th June 2008
13 Intangible assets
Domain names, patents, trade marks and software
2008 2007
£’000 £’000
Cost:
At 1st July 168.5 134.7
Additions 12.3 33.8
At 30th June 180.8 168.5
Depreciation:
At 1st July 117.6 87.1
Provided in the year 25.3 30.5
At 30th June 142.9 117.6
Net book amount:
at 30th June 37.9 50.9
14 Property, plant and equipment
Fixtures, fittings and equipment
2008 2007
£’000 £’000
Cost:
At 1st July 271.8 250.2
Additions 6.2 48.5
Disposals (9.2) (26.9)
At 30th June 268.8 271.8
Depreciation:
At 1st July 156.8 129.5
Provided in the year 51.5 54.2
Eliminated on disposals (9.2) (26.9)
At 30th June 199.1 156.8
Net book amount:
at 30th June 69.7 115.0
15 Inventories
2008 2007
£’000 £’000
Finished goods and goods for resale 77.6 38.1
In 2008 a total of £101,600 (2007 — £111,600) inventories was included in the income statement as an expense. This includes an amount
of £nil (2007 — £nil) resulting from the write-down of inventories.
No reversal of previous write-downs was recognised as a reduction expense in 2008 or 2007. None of the inventories are pledged as
securities for liabilities.
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15587NETCALL:Layout 1  10/10/08  06:59  Page 26 16 Trade and other receivables
2008 2007
£’000 £’000
Trade receivables 1,405.5 1,483.0
Other receivables 11.3 26.4
Prepayments and accrued income 117.3 106.0
1,534.1 1,615.4
All amounts are short-term. The carrying value of trade receivables is considered a reasonable approximation of fair value. All of the
receivables have been reviewed for indicators of impairment. Certain trade receivables were found to be impaired and a provision of
£9,300 (2007 — £ 9,200) has been recorded accordingly in the financial statements.
In addition, some of the unimpaired trade receivables are past due as at the reporting date. The age of trade receivables past due but not
impaired is as follows:
2008 2007
£’000 £’000
Not more than 1 month 378.3 279.7
More than one month but not more than 3 months 44.0 101.5
More than 3 months — —
422.3 381.2
17 Cash and cash equivalents
Cash and cash equivalents include the following components:
2008 2007
£’000 £’000
Cash at bank and in hand 2,915.3 2,360.5
18 Trade and other payables
2008 2007
£’000 £’000
Trade payables 135.1 266.8
Social security and other taxes 255.7 223.6
Accruals and deferred income 856.5 1,011.6
1,247.3 1,502.0
19 Deferred tax
Deferred taxes arising from temporary differences and unused tax losses for the Group for 2008 and 2007 have been calculated at a rate
of 28% and are summarised as follows:
2008 2007
Deferred tax Deferred tax Deferred tax Deferred tax
assets liabilities assets liabilities
£’000 £’000 £’000 £’000
Unused tax losses 560.0 — ——
At 30th June 2008 the Group had unused tax losses of £8.4 million (2007 — £9.1 million).
No temporary differences resulting from investments in subsidiaries qualified for recognition as deferred tax assets or liabilities.
15587 10/10/2008 Proof 6
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15587NETCALL:Layout 1  10/10/08  06:59  Page 27 Notes to the Financial Statements continued
Year ended 30th June 2008
20 Equity
The share capital of Netcall plc consists only of ordinary shares with a nominal value of 5p. All shares are equally eligible to receive
dividends and the repayment of capital and represent one vote at the shareholders’ meeting of Netcall plc.
Share capital
2008 2007 2008 2007
Number Number £’000 £’000
Shares allotted, called up and fully paid
Beginning of the year 66,050,937 65,942,603 3,302.5 3,297.1
Issued during the year — 108,334 — 5.4
Shares issued and fully paid 66,050,937 66,050,937 3,302.5 3,302.5
Authorised
80,000,000 ordinary shares of 5p each 4,000.0 4,000.0
During 2007, following a confirmatory order from the High Court, the Company cancelled its share premium account and transferred the
consequent reserve arising to its profit and loss account. Capital reserves were also transferred to profit and loss account as the period of
10 years required by the High Court to set aside the reserves had expired.
21 Share-based payments
The Company has share option schemes for certain employees. Options are exercisable at prices determined at the date of grant. The
vesting periods are between one and 120 months. If the options remain unexercised after the vesting period, the options expire. Options
are forfeited if the employee leaves the Company before the options vest.
Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:
2008 2007
Weighted Weighted
average average
exercise price exercise price
per share Options per share Options
in pence number in pence number
Outstanding at 1st July 7.7 6,315,000 15.5 5,748,334
Granted —— 5.0 2,975,000
Forfeited or cancelled —— 11.3 (2,300,000)
Lapsed 15.0 (75,000) ——
Exercised —— 7.3 (108,334)
Outstanding at 30th June 7.5 6,240,000 7.7 6,315,000
Exercisable at 30th June 19.9 1,295,001 20.2 1,070,001
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Netcall plc 28
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15587NETCALL:Layout 1  10/10/08  06:59  Page 28 21 Share-based payments continued
At 30th June Netcall plc had the following outstanding options and exercise prices:
2008 2007
Weighted Weighted
Average average Average average
exercise remaining exercise remaining
price contractual price contractual
per share Options life in per share Options life in
in pence number months in pence number months
2008 —— — 25.00 75,000 7.7
2009 —— — —— —
2010 5.00 1,850,000 22.7 5.00 1,850,000 34.7
2011 —— — —— —
2012 7.25 245,000 53.6 7.25 245,000 65.6
2012 10.00 100,000 53.6 10.00 100,000 65.6
2012 20.00 100,000 53.5 20.00 100,000 65.5
2013 —— — —— —
2014 24.00 250,000 70.8 24.00 250,000 82.8
2014 25.00 400,000 67.9 25.00 400,000 79.9
2015 —— — —— —
2016 5.00 2,170,000 92.2 5.00 2,170,000 104.2
2017 5.00 1,125,000 102.3 5.00 1,125,000 114.3
At 30th June 7.5 6,240,000 68.8 7.7 6,315,000 79.2
The options outstanding at 30th June 2008 had a weighted average exercise price of 7.5 pence, and a weighted average remaining
contractual life of 5.7 years. In 2008, no options were granted. In 2007, options were granted on 8th January and 23rd May. 
The inputs into the Black–Scholes option pricing model are as follows:
2008 2007
Weighted average share price 19.3p 18.5p
Weighted average exercise price 7.45p 7.7p   
Expected volatility 40% 40%
Expected life 3–10 years 3–10 years
Risk-free rate 4.08%–5.38% 4.08%–5.38%
Expected dividends — —
Expected volatility is based on the historical volatility of the Group’s share price over the previous three years. The expected life used in the
model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and
behavioural considerations.
The Group recognised total expenses of £200,000 (2007 — £131,400) relating to equity-settled share-based payment transactions.
15587 10/10/2008 Proof 6
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15587NETCALL:Layout 1  10/10/08  06:59  Page 29 Notes to the Financial Statements continued
Year ended 30th June 2008
22 Notes to the cash flow statement
Cash flows from operating activities
2008 2007
£’000 £’000
Profit after taxation 1,069.4 767.0
Adjustments for:
Deferred tax (560.0) —
Depreciation 76.8 84.7
Share-based payment charge 200.0 131.4
Interest received (138.6) (92.0)
Interest paid — 5.3
Decrease/(increase) in trade and other receivables 81.3 (576.9)
(Increase)/decrease in inventories (39.5) 24.1
(Decrease)/increase in trade and other payables (254.7) 298.9
Cash generated from operating activities 434.7 642.5
23 Leases
The Group’s minimum operating lease payments are as follows:
Within Between After more
1 year 1 and 5 years than 5 years Total
£’000 £’000 £’000 £’000
30th June 2008 41.7 113.3 — 155.0
30th June 2007 41.7 155.2 — 196.9
Lease payments recognised as an expense during the year amount to £43,100 (2007 — £44,500).
The Group leases its offices, the lease expires on 1st April 2012, the annual rent through to expiry is £40,000.
Operating lease agreements do not contain any contingent rent clauses. None of the operating lease agreements contain renewal or
purchase options or escalation clauses or any restrictions regarding further leasing.
24 Related party transactions and controlling related party
The Group’s related parties comprise its Board of Directors. There are no transactions that incorporate special terms and conditions in
2008 or 2007.
The Directors are the Group’s controlling and ultimate controlling related parties by virtue of their shareholding and Directorships in 
Netcall plc.
25 Contingent liabilities
There are no material contingent liabilities subsisting at 30th June 2008 or 30th June 2007.
26 Capital commitments
The Group had no capital commitments at 30th June 2008 or 30th June 2007.
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15587NETCALL:Layout 1  10/10/08  06:59  Page 30 27 Risk management objectives and policies
Financial instruments
The Group uses various financial instruments; these include cash and bank deposits, trade debtors and trade creditors that arise directly
from its operations. The main purpose of these financial instruments is to provide finance for the Group’s operations.
The main risks arising from the Group’s financial instruments are interest rate risk, liquidity risk, credit risk and currency risk. The Board
reviews and agrees policies for managing each of these risks and they are summarised below.
Interest rate risk
The Group’s exposure to market risk for the changes in interest rates relates primarily to the Group’s bank deposits. The exposure to
interest rate fluctuations on its deposits is managed by placing these at fixed rates of interest with varying maturity dates.
The aggregate amount of cash deposits on fixed interest terms as at 30th June 2008 was £2,750,000. The weighted average fixed interest
rate on the cash deposits was 4.80% (2007 — 5.2%) and the weighted average period for which the rate is fixed is 1 month (2007 — 1
month). The aggregate amount of cash deposits on variable interest terms as at 30th June 2008 was £ 85,000 (2007 — £34,000). For cash
deposits held with the Group’s clearing bankers, the variable rate is indexed to National Westminster Bank PLC’s base rate. 
A fluctuation in the interest rates of +1% and -1% through the year would not materially impact on the Group’s results.
Liquidity risk
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs.
As at 30th June, the Group’s financial liabilities have contractual maturities as summarised below: 
Current
Between
Within 6 6 and 12
months months
£’000 £’000
2008
Trade and other payables 270.6 28.8
2007
Trade and other payables 532.2 43.5
Credit risk
The Group’s exposure to credit risk is limited to the carrying amount of financial assets recognised at the balance sheet date, as
summarised below:
2008 2007
£’000 £’000
Cash and cash equivalents 2,915.3 2,360.5
Trade and other receivables 1,416.8 1,509.4
4,332.1 3,869.9
The Group’s management considers that all the above financial assets that are not impaired for each of the balance sheet dates under
review are of good credit quality, including those that are past due. See note 16 for fuller information of financial assets that are past due.
The Group’s principal financial assets are cash deposits and trade receivables. Risks associated with cash deposits are limited as the
banks used have high credit ratings assigned by international credit rating agencies.
The principal credit risk lies with trade receivables. In order to manage credit risk, the Directors set limits for customers based on a
combination of payment history and third party credit references. Credit limits are reviewed on a regular basis in conjunction with debt
ageing and collection history.
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32 Netcall plc
15587 10/10/2008 Proof 6
Notes to the Financial Statements continued
Year ended 30th June 2008
27 Risk management objectives and policies continued
Currency risk
The Group is exposed to transaction foreign exchange risk. Transaction exposures, including those associated with forecast transactions,
are managed through the use of bank accounts held in foreign currencies as summarised below:
Total US dollar Euros
£’000 £’000 £’000
Trade and other receivables 12.3 9.8 2.5
Cash and cash equivalents 41.8 10.9 30.9
54.1 20.7 33.4
A +/- 5% change of the pound sterling to US dollar exchange rate and a +/- 5% change of the pound sterling to euro exchange rate
would not have a material impact on the Group’s results in financial years 2008 or 2007.
28 Summary of financial assets and liabilities by category
The carrying amounts of the financial assets and liabilities as recognised at the balance sheet date of the years under review may also be
categorised as follows:
2008 2007
£’000 £’000
Loans and receivables
Trade and other receivables 1,416.8 1,509.4
Cash at bank 2,915.3 2,360.5
4,332.1 3,869.9
Financial liabilities
Trade payables 135.1 266.8
Accruals 164.3 308.9
299.4 575.7
Net short-term liquidity 4,032.7 3,294.2
29 Capital management and objectives
The Group’s capital management objectives are to ensure that the Group has sufficient liquidity to meet its foreseeable requirements and
to invest its cash with mainstream banks. The Directors regularly review forecasts prepared which take into consideration current
performance and the potential effect of future market trends.
30 Authorisation of financial statements
No adjusting or significant non-adjusting events have occurred between the balance sheet date and the date of authorisation on 
29th September 2008 by the Board.
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15587 10/10/2008 Proof 6
33
Company Balance Sheet
As at 30th June 2008
2008 2007
Note £’000 £’000
Fixed assets
Tangible assets 5 12.4 8.0
Investments 6 10,953.7 10,953.7
10,966.1 10,961.7
Current assets
Debtors 7 25.7 22.6
Cash at bank and in hand 2,765.3 2,282.6
2,791.0 2,305.2
Creditors: amount falling due within one year 8 (685.4) (1,105.7)
Net current assets 2,105.6 1,199.5
Total assets less current liabilities being net assets 13,071.7 12,161.2
Capital and reserves
Called up share capital 9 3,302.5 3,302.5
Share premium account 10 2.4 2.4
Merger reserve 10 403.3 403.3
Employee share schemes reserve 10 344.2 260.5
Profit and loss account 10 9,019.3 8,192.5
Shareholders’ funds 13,071.7 12,161.2
15587NETCALL:Layout 1  10/10/08  06:59  Page 33 Notes to the Company Financial Statements
Year ended 30th June 2008
1 Principal accounting policies
Accounting policies
The financial statements are prepared in accordance with applicable United Kingdom accounting standards. The particular accounting
policies adopted are described below.
The financial statements are prepared under the historical cost convention.
Turnover
Turnover is commission received by the Company. It is recognised on a receivables basis.
Tangible fixed assets
Tangible fixed assets are stated at cost net of depreciation and any provision for impairment. Depreciation is provided on cost in equal
annual amounts over the estimated useful lives of the assets. 
The rates of depreciation are as follows:
Domain names, patents and trade marks — 20% per annum.
Investments
Investments are stated at cost less provision for any impairment.
Leased assets
Rentals payable under operating leases are charged to the profit and loss account in equal annual amounts over the lease term.
Taxation
Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively
enacted by the balance sheet date. Deferred tax is provided in full on timing differences, which result in an obligation at the balance sheet
date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates
and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from
those in which they are included in financial statements. Deferred tax assets are recognised to the extent that it is regarded as more likely
than not that they will be recovered. Deferred tax assets and liabilities are not discounted.
Foreign currencies
Transactions denominated in foreign currencies are translated into sterling at the rates ruling at the dates of the transactions. Monetary
assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rates ruling at that date. Translation
differences arising are dealt with in the profit and loss account.
Financial instruments
The Group does not enter into derivative contracts for hedging or speculative purposes.
Share-based compensation
The Company issues share options to certain employees, including employees of its subsidiary undertakings. The fair value of such
options granted is calculated using the Black–Scholes option pricing model and excludes the impact of non-market vesting conditions.
The vesting conditions are reviewed using the Binomial model. The expense is spread over the period from the date of grant to the date
the options vest and are exercisable, based on the best estimate of the number of shares that will eventually vest.
2 Employee remuneration
The Directors are the only employees of the Company. Directors’ remuneration has been disclosed within note 7 of the Group financial
statements.
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Netcall plc 34
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15587NETCALL:Layout 1  10/10/08  06:59  Page 34 3 Auditor’s remuneration
Auditor’s remuneration attributable to the Company is as follows:
2008 2007
£’000 £’000
Audit fees — statutory audit 10.0 13.5
Tax services 1.0 3.0
Other services 16.0 6.0
4 Profit for the financial year
The Parent Company has taken advantage of section 230 of the Companies Act 1985 and has not included its own profit and loss
account in these financial statements and is reporting under UK GAAP . The profit for the financial year was £746,300 (2007 — £668,900).
5 Tangible assets
Domain names, patents and trade marks
2008 2007
£’000 £’000
Cost:
At 1st July 84.9 84.9
Additions 13.5 —
At 30th June 98.4 84.9
Depreciation:
At 1st July 76.9 61.4
Provided in the year 9.1 15.5
At 30th June 86.0 76.9
Net book amount: at 30th June 12.4 8.0
Patents have been reclassified as tangible assets previously reported as a prepayment in debtors.
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Report and accounts 2008 35
15587NETCALL:Layout 1  10/10/08  06:59  Page 35 Notes to the Company Financial Statements continued
Year ended 30th June 2008
6 Investments
The amounts recognised in the Company’s balance sheet relate to the following:
Subsidiary
undertakings Other Total
£,000 £’000 £’000
Cost:
At 1st July 2007 and at 30th June 2008 10,989.7 350.0 11,339.7
Provision:
At 1st July 2007 and at 30th June 2008 36.0 350.0 386.0
Net book amount:
at 30th June 2008 and at 30th June 2007 10,953.7 — 10,953.7
Country of Class of share Proportion held
Subsidiary registration capital held by the Company Nature of business
Netcall Telecom Limited England Ordinary shares 100% Development and marketing of
commercial applications derived
from the Group’s technology
To avoid a statement of excessive length, details of the non-trading subsidiaries have been omitted.
7 Debtors
2008 2007
£’000 £’000
Other debtors 3.0 2.9
Prepayments and accrued income 22.7 19.7
25.7 22.6
All debtors fall due within one year of the balance sheet date. The 2007 prepayment and accrued income has been amended to reflect
reclassification of patents as tangible assets.
8 Creditors: amounts falling due within one year
2008 2007
£’000 £’000
Amounts owed to subsidiary undertakings 621.7 971.3
Trade creditors 1.5 5.3
Social security and other taxes 10.8 10.4
Accruals and deferred income 51.4 118.7
685.4 1,105.7
9 Called up share capital
2008 2007
£’000 £’000
Authorised
80,000,000 ordinary shares of 5p each 4,000.0 4,000.0
Allotted, called up and fully paid
66,050,937 (2007 — 66,050,937) ordinary shares of 5p each 3,302.5 3,302.5
Share options outstanding at 30th June 2008 were as reported for the Group in note 21 to the Group accounts.
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15587NETCALL:Layout 1  10/10/08  06:59  Page 36 10 Reconciliation of movements in shareholders’ funds
Employee
Share Special and share Profit
premium capital Merger schemes and loss
account reserves reserve reserve account
£’000 £’000 £’000 £’000 £’000
At 1st July 2006 15,125.2 496.4 403.3 159.5 (8,098.0)
Profit for the year —— —— 668.9
FRS 20 Employee Share Schemes —— — 101.0 —
Issue of shares 2.4 —— — —
Share premium cancellation (15,125.2) —— — 15,125.2
Reclassification of reserves — (496.4) —— 496.4
At 30th June 2007 2.4 — 403.3 260.5 8,192.5
At 1st July 2007 2.4 — 403.3 260.5 8,192.5
Profit for the year —— —— 746.3
FRS 20 Employee Share Schemes —— — 164.2 —
Reclassification —— — (80.5) 80.5
At 30th June 2008 2.4 — 403.3 344.2 9,019.3
During 2007, following a confirmatory order from the High Court, the Company cancelled its share premium account and transferred the
consequent reserve to its profit and loss account.
Capital reserves were also transferred to profit and loss account as the period of 10 years required by the High Court to set aside the
reserves had expired.
11 Related party transactions 
The Company has taken advantage of the exemption granted by paragraph 3c of FRS 8 not to disclose transactions with other Group
companies.
12 Contingent liabilities
There are no material contingent liabilities subsisting at 30th June 2008 or 30th June 2007.
13 Financial commitments
The Company had no financial commitments at 30th June 2008 or 30th June 2007.
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Notice is herby given that the Annual General Meeting of Netcall plc will be held at 10 Harding Way, St Ives, Cambridgeshire, PE27 3WR on 
19th November 2008 at 11 a.m. for the following purposes:
Ordinary Business:
1 To receive and consider the Annual Report and audited financial statements for the year ended 30th June 2008, the Report of the Directors
and the Auditors’ Report on those financial statements.
2 To reappoint as Director R Allsop who retires by rotation in accordance with the Articles of Association. 
3 To reappoint as Auditor Grant Thornton UK LLP to hold office from the conclusion of this Annual General Meeting until the conclusion of
the next general meeting of the Company at which financial statements are laid and to authorise the Directors to determine their
remuneration.
4 To approve that the principal terms (as defined in section 536(4) Companies Act 2006) of a liability limitation agreement (as defined in
section 534 Companies Act 2006) for the financial period ended 30th June 2008 proposed to be entered into by the Company and Grant
Thornton UK LLP .
Special Business:
5 To consider and, if thought fit, pass the following as an ordinary resolution:
“THAT the Board be and is hereby generally and unconditionally authorised to exercise all powers of the Company to allot relevant
securities (within the meaning of section 80 of the Companies Act 1985) up to an aggregate nominal value of £200,000, provided that this
authority shall expire one year after the passing of this resolution save that the Company may before such an expiry make an offer or
agreement which would or might require relevant securities to be allotted after such expiry and the Board may allot relevant securities in
pursuance of such an offer or agreement as if the authority conferred hereby had not expired.”
6 To consider and, if thought fit, pass the following as a special resolution:
“THAT, subject to the passing of the previous Resolution 5, the Board be and is hereby empowered pursuant to section 95 of the
Companies Act 1985 to allot equity securities (within the meaning of section 94 of the Companies Act 1985) up to an aggregate nominal
amount of £200,000 pursuant to the authority conferred by the previous resolution as if subsection (1) of section 89 of the Companies Act
1985 did not apply to such allotment.”
7 To consider and, if thought fit, pass the following as a special resolution:
“THAT, the Company be and is hereby generally and unconditionally authorised, pursuant to Section 166 of the Companies Act 1985 
(the “Act”) to make market purchases (as defined in Section 163 of the Act) of its own ordinary shares of 5 pence each (“ordinary shares”)
on such terms and in such manner as the directors of the Company shall determine;
The general authority conferred by this resolution shall:
7.1 Be limited to a maximum number of 6,635,000 ordinary shares (representing 10% of the issued share capital of the Company as at the
date of this notice);
7.2 Not permit payment of a price per ordinary share, exclusive of expenses of less than 5 pence or more than 105% of the average price at
which business was done in the ordinary shares of the Company in the five business days preceding the purchase;
7.3 Expire at the conclusion of the Annual General Meeting of the Company to be held in 2009 save that the Company may before the expiry
of the power hereby conferred contract to purchase its own ordinary shares which contract requires or might require the purchase of such
ordinary shares wholly or partly after such expiry.”
By order of the Board
A Pearson-Hurrell
Company Secretary
10 Harding Way
St Ives
Cambridgeshire
PE27 3WR
Notes:
1 A shareholder entitled to attend and vote at the Annual General Meeting is also entitled to appoint one or more proxies to attend and, on a
poll, vote instead of him/her. The proxy need not be a shareholder of the Company.
2 To be effective, the instrument appointing a proxy and any authority under which it is executed must be deposited at the offices of Neville
Registrars Limited, Neville House, 18 Laurel Lane, Halesowen, West Midlands, B63 3BR not less than 48 hours before the time for holding the
meeting. Completion and return of the Form of Proxy will not preclude shareholders from attending and voting at the Annual General Meeting.
3 For the purposes of determining who is entitled to attend or vote (whether on a poll or otherwise) at the AGM a person must be entered on
the register of members by 11 a.m. on 19th November 2008 and shall be entitled to vote only those shares registered in that person’s
name at that time. 
4 The register of interests of the Directors and their families in the issued share capital of the Company and copies of the Directors’ service
contracts will be available for inspection at the registered office of the Company during usual business hours (Saturdays, Sundays and
public holidays excepted) from the date of this Notice until the conclusion of the Annual General Meeting.
Notice of Annual General Meeting
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Netcall plc 38
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Netcall plc Form of Proxy
For use at the Annual General Meeting to be held on 19th November 2008.
I/We (Name in full) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
of  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
being (a) member(s) of Netcall plc hereby appoint the Chairman of the Annual General Meeting, or
 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held at 10 Harding Way, St Ives,
Cambridgeshire, PE27 3WR on 19th November 2008.
Please indicate with an “X” in the space below how you wish your vote to be cast. In the absence of any specific direction, and on any other
resolution or motion put to the Annual General Meeting, the proxy will, on a poll, vote or abstain as the proxy thinks fit.
Vote
Ordinary Resolutions For Against withheld
1 To receive the Annual Report and audited financial statements for the
year ended 30 June 2008.
2 To reappoint R Allsop as a Director.
3 To reappoint Grant Thornton UK LLP as Auditor.
4 To approve the principal terms of a limited liability agreement to be entered into
with Grant Thornton UK LLP .
5 To authorise the Directors to allot relevant securities.
Special Resolutions
6 To authorise the Directors to allot equity security for cash for certain purposes.
7 To authorise market purchases of shares.
Signature(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Date  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2008
 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes:
1 To be valid the form of proxy must be completed and deposited with the Company’s Registrars, Neville Registrars Limited, Neville House,
18 Laurel Lane, Halesowen, West Midlands, B63 3BR, not later than 48 hours before the time fixed for holding the Meeting or adjourned
Meeting.
2 If the appointer is a corporation this form of proxy should be executed under common seal or under the hand of an officer duly authorised
in writing.
3 In the case of joint holders the signature of any one holder will be sufficient but the names of all joint holders should be stated.
4 A member may appoint his or her own proxy in the space provided and such proxy need not be a member of the Company.
5 If the proxy is not mandated as to how to vote, he or she may vote at his or her discretion.
15587NETCALL:Layout 1  10/10/08  06:59  Page 39 BUSINESS REPLY SERVICE
Licence No. BM3865
THE REGISTRAR
NEVILLE REGISTRARS LIMITED
NEVILLE HOUSE
18 LAUREL LANE
HALESOWEN
WEST MIDLANDS
B63 3BR
Second fold
Third fold
and tuck in flap opposite
First fold
2 2
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CONTENTS
Highlights 1
Chairman’s Statement 2
Chief Executive’s Review 3
Officers and Professional Advisers 6
Report of the Directors 7
Report of the Independent Auditor 11
Consolidated Income Statement 12
Consolidated Balance Sheet 13
Consolidated Statement of Changes in Equity 14
Consolidated Cash Flow Statement 15
Notes to the Financial Statements 16
Company Balance Sheet 33
Notes to the Company Financial Statements 34
Notice of Annual General Meeting 38
Form of Proxy 39
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Netcall plc
10 Harding Way
St Ives
Cambridgeshire
PE27 3WR
t. 01480 495300
www.netcall.com
Netcall plc
Annual report and accounts 2008
Netcall plc Report and accounts 2008
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