Actual Experience plc 
Annual Report
2016 We all experience poor 
digital quality. 
When you’re in the middle of an online 
banking transaction and the page freezes. 
When your local cinema’s booking engine 
grinds to a halt and staff are left to explain 
why. When the flight scheduling system 
goes down and the flight can’t take off.
With worldwide ecommerce worth 
$22.1 trillion
1
, few businesses can ignore 
the brand and productivity effects that 
poor digital experiences can have on 
their consumers and employees. 
Our analytics tool, Actual Work, analyses 
the digital supply chains of leading brands 
around the world. It provides the insight 
required to bring consistency to the quality 
of the digital experience for their customers 
and staff. 
Consistent digital experience quality  
boosts brands and productivity. 
It enables businesses to get their digital 
transformation right first time and it 
creates competitive advantage.
Source:
1 UNCTAD, 2016 , New initiative to help developing countries  
grasp $22 trillion ecommerce opportunity. 
Actual Experience is a listed-company on  
the London Stock Exchange (ACT). Our 
development headquarters are in Bath, UK 
and we have sales staff based out of London, 
Seattle, New York, Washington DC and 
Atlanta. Actual Experience’s unique digital 
Analytics as a Service, Actual Work, is 
founded on ten years of cutting-edge 
research at Queen Mary University of London.
www.actual-experience.com
1999:
Professor Jonathan Pitts of 
Queen Mary University of 
London works on quality-
based approach to voice 
packet queueing
2001:
Dave Page suggests digital 
Voice of the Customer 
approach to research
2008:
Prof makes the digital Voice of 
the Customer approach work
Prof and Dave agree to work 
on developing a business 
based on the technology
Dave sets up shop in his 
home basement
2009:
Limited company forms  
and initial convertible loan 
funding raised
Dave moves the business 
into an office
Commercial development 
begins
2010:
First customer signed
Stage 1 seed funding raised
TIMELINE Notice of AGM Glossary of terms Sources Governance
1
Actual Experience plc ANNUAL REPORT 2016
Strategic report Financial statements
FINANCIAL 
Revenue
£0.72m
Loss per share
15.21p
Loss for the year
£5.67m 
Cash
£9.42m
OPERATIONAL 
 ■ Signing of a third multi-year 
framework agreement with 
Vodafone. 
 ■ Subsequent to year end, signing 
of a fourth multi-year agreement 
with Accenture.
 ■ Ongoing progress towards 
commercialisation within two 
existing channel partners: 
Verizon Enterprise Solutions  
and a leading global brand.
 ■ Significant white-labelling 
project with a Fortune 100 
global technology company.
 ■ Continued investment to ensure 
our readiness for channel 
partners entering the revenue 
generation phase. This has 
included augmenting our 
leadership team, introducing 
enhanced structures and 
processes, moving to a new 
headquarters, investing in 24x7 
customer support, scaling our 
datacentre operations and 
creating a global sales structure.
 ■ In preparation for live operation 
with our global channels, we 
have increased the focus on 
scaling and technical security 
within our datacentres, 
developed the first mobile 
Digital User, worked on 
transforming the User Interface, 
and continued to improve our 
algorithms.
HIGHLIGHTS OF THE YEAR
2011:
Stage 2 seed funding raised
2013:
£5m funding and AIM 
introduction
2015:
£16m funding. First channels 
signed
Strategic report
Highlights of the year 1
Chairman’s statement 2
At a glance 4
Our technology 8
Our business model 10
Strategy to maintain market leadership 12
Chief Executive’s statement 14
Financial review 18
Principal risks and uncertainties 20
Governance
Board of Directors 22
Directors’ report 24
Directors’ responsibilities 26
Corporate governance report 27
Directors’ remuneration report 31
Financial statements
Independent auditors’ report 33
Consolidated statement of comprehensive income 34
Consolidated statement of changes in equity 35
Consolidated statement of financial position 36
Consolidated statement of cash flows 37
Notes to the consolidated financial statements 38
Independent auditors’ report 53
Company statement of changes in equity 54
Company statement of financial position 55
Company cash flow statement 56
Notes to the Company financial statements 57
Notice of Annual General Meeting 61
Notes relating to Annual General Meeting 62
Glossary of terms 63
Sources 64 Actual Experience plc ANNUAL REPORT 2016
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Actual Experience plc ANNUAL REPORT 2016
Market and customers
I am delighted to be able to report upon 
a year of substantial progress at Actual 
Experience. We entered the year with the 
objective of building a global channel 
partner programme and ensuring the 
business had the infrastructure to support 
that channel. Working through channel 
partners, who themselves may have tens of 
thousands of customers, and being built 
into their offering provides us with an 
opportunity to address that vast market. It is 
on this area that the Company is focused.
Both of these objectives have been 
achieved. We have now signed Master 
Services Agreements with four major 
channel partners, each of whom is 
progressing towards the point of significant 
revenue generation, with more to come. 
Meanwhile, the investment in our people 
and infrastructure means we have a 
scalable business, capable of providing  
24x7 global channel support.
As is to be expected, it has taken many 
months of diligent application by our teams 
to bring these types of partnerships to this 
point. We have worked closely with our 
partners to progress the engagements 
through the various preparatory phases, 
including product integration, marketing 
collateral development and partner 
education. The year has taught us much 
in this respect and we believe we now 
have a replicable process, which can be 
applied to future partners. 
While revenues in the year have remained 
steady, this masks a positive trend which 
has seen our channel partner revenue 
increase to 60% of total revenue, up from 
33% in the prior year. Once our analytics 
are being used within our channel partners’ 
customer bases we expect this revenue  
to increase substantially. While we believe 
the significant size of our opportunity  
merits investment, we are committed to 
good financial management and general 
cost discipline, resulting in effective  
cash management.
“I am delighted to be able 
to report upon a year of 
substantial progress at 
Actual Experience. We 
entered the year with the 
objective of building a 
global channel partner 
programme and ensuring 
the business had the 
infrastructure to support 
that channel. Both of these 
objectives have been 
achieved.”
Continued operational  
and commercial progress
Stephen Davidson
Chairman
CHAIRMAN’S STATEMENT Notice of AGM Glossary of terms Sources Governance
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Actual Experience plc ANNUAL REPORT 2016
Strategic report Financial statements
This operational progress has been 
achieved against an increasingly positive 
market backdrop. The Board believes the 
size and scope of our market opportunity is 
greater than ever. Digital capability, quality 
and security are now top boardroom 
priorities and our analytics and the 
actionable insight they provide are key to 
digital quality. We continue to be pleased 
by the market validation of our technology 
vision as businesses increasingly recognise 
the need for consistently high levels of 
digital experience quality as a critical 
business enabler for their employees and 
customers. 
Board and employees
We were delighted to welcome Paul 
Spence to the Board as Non-executive 
Director in February 2016 . Having spent 
much of his career with Capgemini and its 
predecessor companies, including the role 
of CEO of Capgemini Global Outsourcing 
Services, Paul brings with him a wealth 
of knowledge and extensive international 
experience which will be important as we 
seek to develop our geographical reach. 
As I noted in my report last year, Robin 
Young stepped down from his position as 
Non-executive Director to assume an 
operational role at the Company, being 
appointed Chief Operating Officer with 
effect from October 2015 . Under his 
leadership the business has undergone 
significant operational change, ensuring 
we have a scalable business capable of 
supporting our customers globally.
I would like to take this opportunity to 
thank our employees for their passion 
and commitment to ensuring the success 
of Actual Experience, and our customers 
and shareholders for their ongoing support. 
Outlook
The focus of the year ahead will be on 
delivering the significant revenue potential 
of our existing channel partners while 
signing further global partners. We will 
continue to invest in the scalability of our 
technology, infrastructure and people. 
While much remains to be done, the Board 
is pleased with the progress made by the 
business in positioning itself to continue to 
pioneer its leadership of the digital 
experience quality market and continues to 
be excited by the scale of the opportunity. 
The Board believes that Actual Experience 
is well positioned to execute on this 
opportunity and looks forward to another 
year of significant advances.
Stephen Davidson
Chairman
18 January 2017
“The focus of the year ahead 
will be on delivering the 
significant revenue potential 
of our existing channel 
partners while signing further 
global partners. We will 
continue to invest in the 
scalability of our technology, 
infrastructure and people.
 
While much remains to be 
done, the Board is pleased 
with the progress made by 
the business in positioning 
itself to continue to pioneer  
its leadership of the digital 
experience quality market 
and continues to be  
excited by the scale of the 
opportunity. The Board 
believes that Actual 
Experience is well positioned 
to execute on this opportunity 
and looks forward to another 
year of significant advances.” Actual Experience plc ANNUAL REPORT 2016
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Actual Experience plc ANNUAL REPORT 2016
Digitising the enterprise is the biggest 
challenge and opportunity for most 
businesses
WHAT WE DO
MARKET TRENDS
The opportunity is big
$22.1 trillion 
Ecommerce market:
The global ecommerce market, which 
includes both business to business (B2B) 
and business to consumer (B2C), is worth 
$22.1 trillion
1
. B2B transactions account for 
the largest share of ecommerce revenue 
at $19.9 trillion, with B2C revenues at 
$2.2 trillion.
$2.6 trillion
IT infrastructure spend:
Businesses worldwide will spend 
$2.6 trillion
2
 on their IT infrastructure –  
the services and components that make 
up the digital supply chain and which 
underpin the digital experience.
$369 billion 
Digital transformation: 
The global digital transformation market 
is expected to grow at a CAGR of 19.6 % 
to $369.22 billion by 2020
5
. Digital 
transformation is helping enterprises 
to streamline their business processes 
to achieve optimal output and improve 
customer relationships.
$187 billion
Data & analytics:
Data is the driving force underlying market 
disrupters such as ride-sharing service 
Uber. Data and analytics projects dominated 
the top of Information Week’s Elite 100
3
 list 
and IDC’s recent forecast for this market 
shows significant revenue growth
4
, to 
$187 billion, over the next five years.
“By 2018, two-thirds of 
CEOs at companies on 
Forbes’ list of The Global 
2000 will include a digital 
strategy in their business 
plan.”
IDC FutureScape for Worldwide Digital 
Transformation, 2016  
We expect to be able to explore, share and 
transact online at work, at home, on the 
move, with a laptop, tablet, or mobile device. 
We pay bills using secure online banking, 
we browse and purchase from trusted 
retailers, and watch videos on demand. 
When these products and services work we 
think nothing of it. When they don’t work 
we quickly get frustrated: the shopping 
basket that freezes on checkout, the 
picking order that gets ‘held up’ between 
the retailer and the warehouse, the 
returned package that can’t be traced. 
AT A GLANCE
In our professional lives, the delays with 
systems not only frustrate us but cost 
the business in productivity. Timesheets, 
booking systems, inventories, databases 
that don’t load, or take an age to process. 
All while we tap our fingers, do something 
else, come back to it, or grumble at the 
screen. Those of us on the customer 
frontline are charged with pacifying 
the customer: “I’m sorry, it’s taking a 
while to load today. Bear with me.”
As consumers we try to diagnose the 
problem ourselves: is it the wifi, the 
application, the website, the device we’re 
using? We wonder why some products 
and services seem always to work while  Notice of AGM Glossary of terms Sources Governance
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Strategic report Financial statements
See page 63 and 64 for sources and glossary.
Our products 
Actual Work analyses the digital supply 
chains of leading brands around the world. 
It provides the insight required to bring 
consistency to the quality of the digital 
experience for their customers and staff.
Critical change:
Forty-one percent of CEOs 
anticipate that their company will  
be significantly transformed over 
the next three years. According to 
72 percent of CEOs, the next three 
years will be more critical for their 
industry than the last 50 years
6
.
Revenue threats:
Board members estimate 32% of  
their company’s revenue will be  
under threat from digital disruption  
in the next five years
7
.
Digital moves from an IT issue to business challenge
41% 32%
Growth:
Sixty percent of Boards will be 
spending more time on digital
7
. They 
expect digital initiatives to deliver 
annual growth and cost efficiencies  
of 5-10 % or more in the next three to 
five years
8
.
60%
“Digital transformation isn’t a technology 
initiative, it’s a business strategy.”
Robert Parker
Group VP, IDC
Technology:
The speed of change will be 
exponential and fuelled by technology. 
Technology-related change is the 
number one priority for CEOs and 
seventy-seven percent are concerned 
about whether their organisation is 
keeping up with new technologies. 
Data and analytics will be a top area of 
investment over the next three years
6
.
Digital experience:
Sixty-seven percent of CEOs are 
concerned about customer churn 
related to digital experience and 
seventy-nine percent of CEOs 
consider a consistent, high-quality 
digital experience to be essential to 
the success of the business
9
.
77% 79%
stakes are high and unpredictable digital 
experience quality threatens all of this.
A consistent digital experience is possible 
for digital products and services. This is  
the problem we at Actual Experience solve.
At Actual Experience, we are focused 
on service providers as channels to take 
our product to market. Our product, 
Actual Work, enables service providers 
to significantly reduce the time it takes 
to pinpoint digital experience issues. 
Being built into the service providers’ 
offering for their own customers 
provides Actual Experience with an 
opportunity to address a vast market.
others are inconsistent. We think less 
of the brands providing those services. 
Poor digital experiences can translate to 
loss of customer loyalty and advocacy, 
two key metrics which impact revenue. 
This inconsistent digital experience 
threatens the ambitions of today’s 
businesses. Ecommerce revenues 
worldwide are already generating 
$22.1 trillion
1
, with B2B contributing 
$19.9 trillion
1
 and B2C $2.2 trillion
1
 of 
those transactions. Combine that with 
businesses worldwide spending
$2.6 trillion on their IT infrastructure 
and 63% of CEOs intending to increase 
their IT and digital investment. The  Actual Experience plc ANNUAL REPORT 2016
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Actual Experience plc ANNUAL REPORT 2016
Digital
User
Business 
customer 
ISPs
Enterprise 
ISP
Business
customer
network
Analytics
Cloud
Quality
dashboard
Enterprise 
application
Enterprise
network
Internet Digital
User
Business 
customer 
ISPs
Enterprise 
ISP
Business
customer
network
Analytics
Cloud
Quality
dashboard
Enterprise 
application
Enterprise
network
Internet Digital
User
Business 
customer 
ISPs
Enterprise 
ISP
Business
customer
network
Analytics
Cloud
Quality
dashboard
Enterprise 
application
Enterprise
network
Internet
HOW IT WORKS IN PRACTICE
HOW WE DO IT
Digital Users (DUs) are lightweight 
software, deployed as close to the point of 
use as possible to represent user types for 
digital services. They receive instructions, 
make standard measurements to invoke 
different components of a digital service 
architecture, and send the results to the 
Analytics Cloud for processing. DUs are 
free and unlimited.
The Actual Experience Analytics Cloud, 
based on decades of academic research 
and patented technology, receives data 
from the Digital Users to provide an objective 
score of digital experience quality. The 
analytics show how well digital products 
and services are working right now and 
across time, and why services are behaving 
that way. We charge by analytic capacity.
Actual Work delivers the real-time analysis 
to dashboards on desktops, laptops, 
smartphones and tablets. The data is 
clearly and intuitively presented at the level 
required. Our analytics provide high level 
scores, full quality history and supplier 
behaviour, with all the detail from the 
supporting rich data.
As part of their digital 
transformation, businesses 
around the world spent 
more than $2.6 trillion on 
their IT infrastructure last 
year, according to Gartner
2
. 
However, even the world’s most recognised 
digital products and services still offer an 
inconsistent experience to customers and 
end users. This variability at the heart of 
the world’s digital economy is frustrating 
customers and eroding business revenue.
We used Actual Work to monitor variability 
on the digital supply chains of some of the 
world’s largest brands in the US and UK. 
In February and March 2016 we analysed 
108 brands from a variety of industries 
including banking, video streaming, 
gambling, retail, ecommerce and travel.
Our analytics showed a small handful of those 
brands managed to deliver a consistent 
experience even across the internet. Perfect 
experience looks like this on the Actual Work 
dashboard: an almost flat line, with little 
variability. A perfect quality score of between 
77 and 81 means your digital products are fit 
for purpose. Your digital supply chain is lean. 
Your investments in customer experience  
are effective.
AT A GLANCE continued Notice of AGM Glossary of terms Sources Governance
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Actual Experience plc ANNUAL REPORT 2016
Strategic report Financial statements
Digital
User
Business 
customer 
ISPs
Enterprise 
ISP
Business
customer
network
Analytics
Cloud
Quality
dashboard
Enterprise 
application
Enterprise
network
Internet
A score above 80 means you are over-
invested in your supply chain and your 
customers or staff will not benefit. 
A score below 60 means customers 
and staff start to give up, yet other 
diagnostic tools will not see this.
A consistent experience is uncommon. 
The analytics show that the digital 
customer journey is highly variable 
falling below ‘perfect’ for all but a few 
of the brands we looked at. Here is 
an example of a more typical poor 
experience which is high in variability. 
This inconsistency can leave customers 
with an unreliable digital service. At 
its worst, it can result in customers 
not being able to properly access 
digital products and services.
Business leaders acknowledge that digital 
experience quality is critical to business 
success. Yet customers and employees 
experience variability. Leaders
9
 globally 
are confident they are focusing on the 
right things to reduce the variability of 
the experience people are having. Some 
however believe they cannot affect the 
quality because the product or service 
is delivered over the internet, which 
they cannot control end-to-end. Actual Experience plc ANNUAL REPORT 2016
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Actual Experience plc ANNUAL REPORT 2016
Cloud service providers  
selling to consumers
Home broadband  
providers selling to  
consumers
Service providers  
selling to large  
enterprise
Mobile broadband  
providers selling to  
consumers
Cloud service  
providers selling  
to large enterprise
Case study: MSP & retailer
Network issues impacted in-store 
staff productivity, revenue and 
customer service across Asia for 
this retailer. With the Managed 
Service Provider held responsible, 
they agreed a costly WAN 
hardware upgrade. 
The MSP subsequently used Actual 
Work’s analytics to establish that 
local network access – outside the 
MSP’s control – was the cause.  
This insight proved pivotal in  
saving the retailer from investing  
in an upgrade that would not have  
solved the problem, enhanced  
their confidence in the MSP and 
deepened their commercial 
relationship. 
“We believe there are more than 800 service 
providers around the globe with revenue 
opportunities similar to the agreements with 
our four publicly announced partners.”
OUR TECHNOLOGY
ACTUAL ’S ABILITY TO MEET DEMAND:
TARGET MARKETS
In 2016, we have focused 
on channel partners, in 
particular providers of 
services to large enterprise.
See page 63 and 64 for sources and glossary.
Our approach has changed. The business 
focus is now almost entirely targeted at 
channel partners. In the months since our 
fund raising exercise in June 2015 , we have 
built our business out in readiness for 
channel production. 
Our focus with direct enterprise customers 
has shifted from revenue generation 
to using their feedback to define new 
requirements for the Actual Work product 
roadmap. This means we can better 
support the service provider channel with 
their customers. We also have a base of 
consumers using our Actual Home product 
which diagnoses issues with broadband 
and wifi in the home. We are investing in 
this as the opportunity emerges.
Digital
User
Analytics
Cloud
Quality
Dashboard
Signal Customer
network
Remote oce
wireless
Customer
application
Current focus Emerging focus  Notice of AGM Glossary of terms Sources Governance
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Strategic report Financial statements
Case study: SP & financial services client
Inconsistent digital experience threatened the 
reputation of this service provider as it rolled out a new 
service to its global financial services 
client’s multiple geographies. Traditional 
monitoring tools failed to find the problem.
The service provider used Actual Work’s 
analytics to rapidly pinpoint exactly the 
failing component. To the financial 
services client’s surprise, the issue sat in 
their own IT. The service provider is using 
Actual Work’s analytics to accelerate its 
digital transformation programme. 
HOW OUR SERVICE PROVIDER PARTNERS USE US
By 2019 digital revenues  
will double to
41%
2
Businesses worldwide IT  
infrastructure spend in 2015
$2.6 trillion
2
How are our service 
provider partners using 
digital experience quality 
analytics? 
Our digital experience quality analytics 
tool enables service providers to deliver a 
consistent and reliable digital experience 
for their enterprise customers across 
complex global digital supply chains. 
Our service provider partners use Actual 
Work to drive service innovation and 
create competitive advantage, whilst 
enabling Enterprises to boost productivity 
and enhance brand reputation. Actual 
Work enables service providers to:
01
Reduce the causes of digital experience 
issues: analysing and finding problems in 
the global digital supply chains comprising 
hundreds of technologies and suppliers, 
Actual Work’s insights enable service 
providers to reduce the time required to 
pinpoint and resolve digital experience 
issues, reduce their cost of service, 
and improve customer satisfaction. 
02
Get deployments right first time: 
verifying the consistency of new services 
before they are deployed, Actual Work’s 
insights enable service providers to 
eliminate the costs associated with 
diagnosing and fixing experience 
problems, and to boost brand reputation. 
03
Continually improve operations: 
enabling service providers to analyse 
every aspect of their operations, Actual 
Work’s insights help them to improve 
consistency while optimising the right 
assets and targeting investment.
04
Differentiate & innovate: helping service 
providers to focus on the quality of the 
digital experience they are providing, Actual 
Work’s insights enable them to differentiate 
their services in a highly competitive market, 
strengthening customer relationships and 
making new business more compelling. 
In addition, our insights empower service 
providers to have a unique and very 
different customer conversation which goes 
beyond their traditional service provider 
remit and opens up new revenue streams. 
Digital
User
Analytics
Cloud
Quality
Dashboard
Signal
Customer
network
Remote oce
wireless
Customer
application Actual Experience plc ANNUAL REPORT 2016
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Actual Experience plc ANNUAL REPORT 2016
Intellectual 
property
 ¡ Patents
 ¡ Trade secrets
 ¡ Expertise
Analytic 
capacity
$ Annuity fee 
proportional to  
analytic capacity
Actual 
Analytics
as a Service
Developing high value intellectual property  
into service provider propositions
HOW WE GENERATE VALUE
We have an annuity 
revenue model for our 
Analytics as a Service.
We sell our service provider channels analytic 
capacity in our cloud. The greater the required 
capacity, the greater the charge. 
OUR BUSINESS MODEL
Patents
Actual Experience’s unique digital Analytics 
as a Service is founded on ten years of 
cutting-edge research at Queen Mary 
University of London, led by Professor 
Jonathan Pitts, our Chief Science Officer. 
USPTO (United States Patent  
and Trademark Office) and SIPO  
(State Intellectual Property Office  
of the People’s Republic of China)  
have granted us the patents. We  
are patent pending with European 
Patent Office (EPO).
KEY COMPETITIVE STRENGTHS
For a service provider’s multinational 
enterprise customer, the analytic capacity 
may generate in excess of $500k per annum. 
Our service providers have hundreds of 
multinational customers and thousands of 
small and medium-sized business customers.
Our Digital User software is free and 
unlimited. This enables customers to install 
them wherever they may need them. 
Customers can then choose whether or not 
to take measurements using them and this 
choice can be changed over time. They  
are charged only for the analytic capacity  
they use.
Deployment happens over a period of time. 
Full adoption by a service provider channel 
may take three to five years. As part of this 
adoption, service providers build Actual Work 
into their offerings to their own customers, of 
which they typically have between several 
hundreds and tens of thousands. A service 
provider’s customers may achieve full 
maturity within six to eighteen months, with 
some rolling out faster and some more slowly. 
Focusing on the service provider channel 
provides us with an opportunity to address a 
vast market.
Trade secrets
Our trade secrets are in our Analytics 
Cloud, making algorithms work in the 
real world. For example, we had to make 
Professor Pitts’ original algorithms work 
more than one thousand times faster 
than the original maths formulation. 
We have spent seven years since 
forming the Company developing the 
algorithms inside our datacentres.
Channel go to market
Our approach to market with our Actual 
Work Analytics as a Service is through 
large national and multinational channels, 
primarily service providers who have 
a common set of needs. Our Analytics 
as a Service is being embedded into 
their products and services. This builds 
references for other prospective service 
providers during the sales cycle and 
strengthens relationships with our partners. Notice of AGM Glossary of terms Sources Governance
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Strategic report Financial statements
Enterprise
Actionable insight to 
improve quality
$ Annuity fee 
proportional to 
enterprise needs
Better digital journeys
Increased
productivity
Better digital journeys
Improved 
brand
Service Provider
Hundreds of service 
providers, each with 
hundreds of large global 
customers and thousands 
of smaller customers
Employees
Customers
Differentiated product 
Actual Work benefits from key 
differences making it appropriate for 
use by global enterprises. Firstly, we 
have developed a way of getting our 
Digital Users to take measurements 
across the entire digital supply chain 
for the service. All other tools on the 
market just look at one particular part.
Secondly, other tools measure network 
or application system parameters to help 
monitor system performance. Following 
a decade of academic research at Queen 
Mary University of London, we have 
developed algorithms that transform 
system parameters into a reliable 
proxy for human experience of a digital 
service. This enables digital experience 
to be managed for the first time.
Core enablers
First mover advantage
We researched and invented digital 
experience quality. Our ability to analyse 
across the entire digital supply chain from 
the end user’s perspective is unique. 
Deep technical knowledge
Our mathematical and engineering 
expertise is unmatched right now in 
the market. We have invested heavily in 
developing the algorithms that enable 
our analytics to interpret the world 
through a human lens and provide 
actionable insights to our customers.
Innovative culture
We encourage a supportive, no-blame 
working environment, which enables 
our teams to take their thinking right 
to the edges of what’s possible. This 
culture of innovation underpins our 
ability to move quickly and drive the 
business forward relentlessly at pace.
Scalable business model
Our business is structured around 
supporting our channel partners who 
operate around the world, 24 hours a day. 
We are building a business that can 
execute at scale with sufficient yet 
light-weight processes which enable 
us to operate safely and properly with 
these channel partners. Aligned to this, 
we operate a globally coordinated sales 
leadership for all go to market activities. Actual Experience plc ANNUAL REPORT 2016
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Actual Experience plc ANNUAL REPORT 2016
Case study: MSP & airline
Variable digital experience impacted 
staff productivity for this large 
regional airline whose airports are 
in remote areas where traditional 
connectivity is unreliable. 
Using Actual Work’s analytics, the 
Managed Service Provider proactively 
drove a different conversation with 
its client. The insights demonstrated 
that wireless 4G connectivity 
would positively impact the digital 
experience. The MSP switched the 
airline to 4G, resulting in cost savings 
and a step-change in productivity.
Our goal is to enable businesses to continuously 
develop better digital experience quality for everyone
OUR STRATEGIC PRIORITIES 
We are focused on 
technology service 
providers who support 
their customers’ digital 
business or deliver digital 
solutions directly to 
enterprises.
STRATEGY TO MAINTAIN MARKET LEADERSHIP
01
Prioritise channel 
development
Focusing on service provider partners for 
Actual Work opens up the benefits of our 
analytics tool to their enterprise customer 
base, helping us deliver on our goals faster 
and more fully. 
02
Scale up the  
business
Our key focus has been to scale up 
the business to be ready for channel 
production. In the months since our 
funding in June 2015 , we have:
 ■ Scaled our staff from 23 to 57 people
 ■ Strengthened our leadership team
 ■ Introduced new structure, processes 
and 24x7 support
 ■ Opened a new headquarters in Bath, the 
engine room for our R&D and Operations 
 ■ Focused on security and datacentre 
scaling
 ■ Maintained a strong balance sheet
Digital
User
Analytics
Cloud
Quality
Dashboard
Signal
Customer
network
Remote oce
wireless
Customer
application Case study: MSP & Bank
This global bank’s online 
banking service customers 
were experiencing poor digital 
quality. The MSP was held 
responsible. The situation 
escalated to the highest levels 
in both businesses as engineers 
scrambled to resolve the issue. 
The MSP used Actual Work’s 
analytics to quickly ascertain the 
bank’s application was to blame, 
to the bank’s scepticism but later 
agreement. This saved the MSP 
millions of dollars in overtime. 
The MSP is building Actual 
Work into all client contracts. 
Digital
User
Analytics
Cloud
Quality
Dashboard
Signal
Customer
network
Remote oce
wireless
Customer
application
Notice of AGM Glossary of terms Sources Governance
13
Actual Experience plc ANNUAL REPORT 2016
Strategic report Financial statements
03 
Expand our  
resources
Our goal has been to scale our operational 
capability by recruiting additional expertise 
in Support, R&D, DevOps and Sales. We 
have expanded in line with pipeline 
development, with a keen focus on good 
fiscal management. 
04 
Continue to invest  
in our technology
To support live operation with our global 
channels, we have: 
 ■ Increased the focus on scaling and 
technical security within our datacentres
 ■ Developed the first mobile Digital User, 
which is undergoing a testing process
 ■ Focused design and customer 
experience work on transforming the 
User Interface (UI). The goal is to 
simplify the UI and continue the thrust 
towards self-service by decreasing the 
skill level required to use our service 
 ■ Continued to tune and improve our 
algorithms to keep pace with 
developments in the digital world Actual Experience plc ANNUAL REPORT 2016
14
Actual Experience plc ANNUAL REPORT 2016
Introduction
2016 has been a year of significant 
progress for Actual Experience. We have 
considerably enhanced our scalability 
as a business while receiving strong 
market endorsement for our digital 
analytics service through the signing 
of an additional major channel partner 
agreement which, combined with a further 
agreement announced following the end 
of the year, brings the total to four major 
channel partners. These agreements 
mean that some of the world’s largest 
services companies, such as Vodafone, 
Verizon and Accenture are now actively 
preparing to take our offering out to their 
global customer bases, either directly 
or integrated within their offerings. 
We have performed well against our stated 
strategic objectives during the year, as 
evidenced by the growing number of 
channel partners and the strengthening 
relationship with each. Since completion of 
our fund raising exercise in June 2015 , our 
efforts have focused around ensuring our 
readiness for these channel partners to 
enter the revenue generation phase. This 
has included augmenting our leadership 
team, introducing enhanced structures and 
processes, moving to a new headquarters, 
investing in 24x7 customer support, scaling 
our datacentre operations and creating a 
global sales structure. This has all been 
completed while deepening our 
relationships with our existing channel 
partners; moving them through the stages 
towards production, as well as securing 
new partnerships.
Having built the operational machine, 
the focus for the current year will be on 
execution through our current partners, 
developing our pipeline of additional 
channel partners and the emergence of 
key business metrics against which the 
progress of our Company can be judged.
Strategy overview
In 2016 , our strategy transitioned towards 
achieving market penetration for our 
enterprise offering, Actual Work, via 
channel partners. We are initially targeting 
service providers, who sell to large 
enterprises. A secondary tier of targets will 
be home broadband and mobile broadband 
and service providers selling to consumers. 
Our digital Analytics as a Service is being 
embedded into their processes and 
products, enabling service providers to 
deliver a consistent and reliable digital 
experience across complex global digital 
supply chains for enterprises, their 
customers and employees. 
We sell our service providers analytic 
capacity in our cloud. The greater the 
required capacity, the greater the charge. 
For a service provider’s multinational 
enterprise customer, the analytic 
capacity has the potential to generate 
in excess of $500k per annum for us.
“We have performed well 
against our stated strategic 
objectives … as evidenced 
by the growing number of 
channel partners and the 
strengthening relationship 
with each.”
Dave Page
Chief Executive Officer
Considerable progress in the year across 
many areas of our operations
CHIEF EXECUTIVE’S STATEMENT Notice of AGM Glossary of terms Sources Governance
15
Actual Experience plc ANNUAL REPORT 2016
Strategic report Financial statements
Our channel partners have hundreds of 
multinational customers and thousands of 
small and medium-sized business customers.
Whilst the opportunity is significant, these 
channel partners take time to reach 
maturity. With the channel’s individual 
customers taking between six and eighteen 
months to fully adopt, we anticipate our 
channel partners to achieve full deployment 
within three to five years. 
We continue to maintain a small base of 
important direct enterprise customers for 
Actual Work and consumer customers 
for our consumer product, Actual 
Home. Our focus with direct enterprise 
customers has shifted from revenue 
generation to using their feedback to 
help develop Actual Work. This means 
we can better support the channel with 
their customers. Direct revenue has 
reduced in the year due to this transition.
We also have a base of consumers using 
our Actual Home product which diagnoses 
issues with broadband and wifi in the 
home. We are investing in this as the 
opportunity emerges. 
Market opportunity
The service provider market for our 
proposition is large. We believe there are 
more than 800 service providers around the 
globe with revenue opportunities similar to 
those anticipated with our four publicly 
announced channel partners.
Our traction with this target audience 
indicates a gap in the market, and a 
growing need, for our Actual Work product. 
We are seeing our channel partners benefit 
from our Analytics as a Service, using 
it to drive service innovation and create 
competitive advantage, whilst enabling 
their own enterprise customers to boost 
productivity and enhance brand reputation.
In addition, the underlying trends are in our 
favour, with market statistics indicating a 
strong focus on investment in infrastructure 
to underpin digital initiatives and a shift 
in responsibility for digital transformation 
from IT to the Chief Executive’s office. 
We believe this suggests that digital 
transformation is becoming a strategic 
imperative where investment is growing.
The performance management tools 
market is therefore growing, with new 
players continuing to enter. However 
Actual Work benefits from key differences 
making it appropriate for use by global 
enterprises. Firstly, we have developed a 
way of getting our Digital Users to take 
measurements all the way down the 
delivery chain of the service. All other 
tools just look at one particular part.
Secondly, other tools measure network 
or application system parameters to help 
monitor system performance. Following 
a decade of academic research at Queen 
Mary University of London, we have 
developed algorithms that transform 
system parameters into a reliable 
proxy for human experience of a digital 
service. This enables digital experience 
to be managed for the first time. 
Being able to do those two things 
mentioned above is extremely difficult. 
Others have tried and failed. We firmly 
believe that, in order to create a solution of 
similar quality and with such far reaching 
effect would take a similar period of 
research, by which time our own offering 
will have continued to evolve and be 
deeply embedded within our partners’ 
customer bases. Actual Experience’s 
products also benefit from high levels 
of patent protection which further 
strengthen its competitive advantage. Actual Experience plc ANNUAL REPORT 2016
16
Actual Experience plc ANNUAL REPORT 2016
Operational review
We have made considerable progress in the 
year across many areas of our operations: 
Leadership and structure
Two highly experienced individuals 
joined our leadership team in the year, 
Rachel Fairley as Chief Marketing Officer 
and Robin Young as Chief Operating 
Officer. Robin’s background in FTSE 
250 companies has provided us with 
the skill-set to transition the business 
from early stage to a business ready for 
service with some of the world’s largest 
organisations. Rachel brings considerable 
experience in brand building which will 
be important as we grow our global 
presence. We have introduced greater 
levels of structure to the business enabling 
us to continue to operate smoothly while 
growing our employee base from 33 at 
the start of the year to 57, bolstering our 
expertise in R&D, Operations, and Sales 
and Support, with further growth to come. 
 
Global sales 
We have shifted from an early-stage 
theatre-based sales execution to a globally 
coordinated global sales leadership 
for all go to market activities. This is 
specifically designed to allow us to 
interact efficiently and effectively with 
our large, global channel partners.
 
Product development and testing 
process
We have invested in security and scaling 
within our datacentres. In addition, we have 
continued to evolve our Actual Work service 
during the year, focusing on the design and 
user experience to simplify and continue 
the thrust towards self-service and the 
lessening of skill requirements to use the 
service. The first mobile Digital User has 
been developed and is undergoing testing. 
We have spent time on the continuous 
enhancement of our algorithms. We are 
constantly tuning and improving our 
algorithms as the digital world evolves.
As part of the preparedness for live 
operation with our global channel 
partners, we have increased our focus 
on security, not only at our datacentres 
but also all buildings and processes. 
The year ahead will see us bring the 
new User Interface into production. We 
will continue to invest in security and 
scaling within the datacentres, in the 
ongoing evolution of our algorithms, 
and the launch into production of 
our first mobile Digital User.
 
Marketing 
Our marketing strategy has aligned closely 
to business strategy and we have shifted 
our focus towards service providers as 
potential channel partners. During 2016 , 
we refreshed our brand and continued 
to create the category ‘digital experience 
quality’ for our brand to occupy. Whilst 
brand and category building remain 
important for the service provider market, 
our priority is now shifting towards 
targeting initiatives that enable and 
accelerate sales traction within specific 
prospective and existing channel accounts. 
CHIEF EXECUTIVE’S STATEMENT continued
Actual Experience’s 
analytics service has  
far-reaching applicability, 
with the potential to 
benefit any organisation 
with a digital business or 
footprint.  Notice of AGM Glossary of terms Sources Governance
17
Actual Experience plc ANNUAL REPORT 2016
Strategic report Financial statements
Channel partner update
Actual Experience’s analytics service has 
far-reaching applicability, with the potential 
to benefit any organisations with a digital 
business or footprint. We intend to service 
the global business markets primarily 
through channel partners, but will maintain 
select direct customer engagements.
Actual Experience has signed multi-year 
framework agreements with four global 
technology businesses and a significant 
white-labelling project with a Fortune 100 
global technology company. 
Our channel partners incorporate the 
Company’s capabilities in one or more of 
the following methods: 
 ■ Analytics services sold through the 
channel to the channel’s corporate 
customers as standalone product; 
 ■ Analytics services incorporated in a 
technology product or portfolio and sold 
to the channel’s customer as part of the 
product; or
 ■ Analytics services incorporated in large, 
complex partner agreements, all with 
the ultimate goal to better serve the 
channel partner’s customers or to improve 
their customers’ digital experience.
Typically, for all categories, the signing of 
the Master Services Agreement is the start 
of a complex, multi-phase implementation 
process, prior to significant revenue 
generation. This can involve productisation, 
the development of marketing materials, 
sales team training and, ultimately, the 
building of a sales pipeline. 
New agreements signed in the year
In January 2016 , Actual Experience received 
a significant order to white label the 
Company’s service for a Fortune 100 global 
technology company. 
In March 2016 , the Company signed a 
five-year framework agreement with 
Vodafone. Actual Experience’s digital 
experience quality analytics will be 
integrated into Vodafone’s long-term 
quality improvement processes and key 
performance indicators, across Vodafone’s 
enterprise and consumer markets, products 
and services. 
The two agreements signed prior to the 
period under review were a three-year 
agreement with Verizon Enterprise 
Solutions (September 2015 ) and a 
three-year agreement with a Top 100  
global brand (May 2015 ). 
Following the close of the year, we 
announced the signing of a Global 
Framework Agreement with Accenture.
Implementation update
All of the five agreements mentioned  
above are at various stages within the 
implementation process, with Verizon 
Enterprise Solutions being the most 
advanced. We have been encouraged by 
the scale of their growing sales pipeline.
Looking to the future, we are now in the 
position for the first time to be able to state 
that we believe one or more of our channel 
partners will generate significant revenues 
within the current calendar year. We 
anticipate adding further global businesses 
to our channel partner roster in the  
year ahead. 
Current trading and outlook
The channel partner agreements that  
we have signed and the sheer size of the 
pipeline for potential customers that each 
represents, we believe, vindicates the 
Board’s decision to focus our sales efforts 
solely on channel partners rather than 
through selling direct to individual 
customers. The lead times are naturally 
longer and revenues may be impacted  
in the short term as one-off set up costs 
borne by each channel and direct revenues 
are steadily replaced with annuity income 
from end customers. However, revenues  
to date bear no resemblance to the market 
opportunity nor to the progress being made 
within each of our agreements, and it is this 
progress that underlines our belief that we 
are on the right path towards building a 
business of real scale.
Dave Page
Chief Executive Officer
18 January 2017 Actual Experience plc ANNUAL REPORT 2016
18
Actual Experience plc ANNUAL REPORT 2016
FINANCIAL REVIEW
Revenue
Revenue recognised in the year ended 30 September 2016 was £716 ,346 (2015 : £700,449) 
and relates to the supply of analytical services and associated consultancy activities to 
customers. 60% of revenue was derived from sales to channel partners (2015 : 33%) with 
the balance arising from direct sales. This increased percentage reflects the Group’s 
strategic focus on generating revenue growth from its channel partners.
Gross profit/(loss)
As noted in the Chief Executive’s Statement, the Group has made a significant investment 
during the year to establish the infrastructure required to fully support its channel partners, 
including the establishment of a 24x7 support centre. The set-up costs of this support 
infrastructure resulted in a gross loss for the year of £238,466 (2015 : profit of £193 ,266).
Expenses
Administrative expenses comprising R&D, operational support, sales and marketing, 
and finance and administration costs totalled £5,806,299, an increase of £3,188 ,620 
compared to the prior year. This increase reflects the continued investment 
made by the Group in technology development and customer-facing teams. 
Personnel costs continue to be the largest expense and represent approximately 
62% of the Group’s cost base. The functional cost breakdown is as follows:
 2016
 £
 2015
 £
Research and development 1,215,950 600,789
Operational support 476,912 –
Sales and marketing 3,320,447 1,110,159
Finance and administration 792,990 906,731
Total 5,806,299 2,617,679
Tax
The tax credits recognised in the current and previous financial year relate to R&D tax 
credit claims. 
Foreign exchange
The Group is subject to currency fluctuations as a result of its US operations. Primarily 
related to the EU referendum in June 2016 , foreign exchange gains of £144 ,889 
(2015 : £448) were recorded in operating expenses. These gains were primarily driven 
by US dollar cash deposits held. 
Steve Bennetts 
Chief Financial Officer 
“60% of revenue was 
derived from sales to 
channel partners  
(2015: 33%) with the 
balance coming from 
direct sales. This increased 
percentage reflects the 
Group’s strategic focus on 
generating revenue growth 
from its channel partners.” Notice of AGM Glossary of terms Sources Governance
19
Actual Experience plc ANNUAL REPORT 2016
Strategic report Financial statements
A translation loss of £105 ,310 (2015 : loss of 
£4,684) was recorded in the Consolidated 
Statement of Comprehensive Income due 
to the elimination of intercompany charges 
on consolidation.
Loss for the year
Losses after tax for the year ended  
30 September 2016 totalled £5,671 ,072 
(2015 : loss of £2,225,455). These losses 
are primarily generated by employee 
costs and related expenses. 
Loss per share
The loss per share for the year was 15.21p 
(2015 : loss of 7.12p ). Earnings per share  
have been impacted by the increases in 
operating costs.
Dividend
No dividend has been proposed for the year 
ended 30 September 2016 (2015 : £nil).
Cash flow
Actual Experience is investing in the growth 
of its operations to address what it believes 
to be a significant commercial opportunity 
and its cash flow from operations was 
therefore negative during the year ended 
30 September 2016 , and in line with 
expectations. The Group’s costs are mostly 
operating related, with very little investment 
required for capital infrastructure.
Cash used by operating activities was 
£5,210 ,287 for the year, compared to cash 
used of £1 ,973,356 for the year ended 
30 September 2015 . This operating cash 
requirement was substantially funded by 
cash reserves and the Group ended the 
year with cash and cash equivalent assets 
totalling £9,415 ,886 (2015 : £15 ,275,222). 
Software development capitalisation
The Directors believe that the software 
development capitalisation criteria in 
IAS38 have been met and accordingly 
development costs, net of amortisation 
charges, of £516 ,041 have been capitalised 
as at 30 September 2016 (2015 : £366,386). 
Accounting policies 
The Group’s financial statements have been 
prepared in accordance with International 
Financial Reporting Standards. The Group’s 
significant accounting policies have been 
applied consistently throughout the year and 
are described on pages 38 to 41 . 
Principal risks and uncertainties 
The principal risks and uncertainties facing 
the Group are set out on pages 20 and 21 . 
Key performance indicators 
As the Group is in the process of 
development and commercialisation of its 
services, the Directors consider the key 
quantitative performance indicators to be 
sales revenues of £716 ,346 (2015 : £700,449) 
and the level of cash and cash equivalents 
held in the business of £9,415 ,886 (2015 : 
£15 ,275,222). The Board performs regular 
reviews of actual results against budget, 
and management monitors cash balances 
on a monthly basis to ensure that the 
business has sufficient resources to enact 
its current strategy. Certain non-financial 
measures, such as the number of data 
analytics and deployed Digital Users, 
are monitored on a monthly basis. 
The Board will continue to review the KPIs 
used to assess the business as it grows. 
Environmental matters 
As far as the Directors are aware the 
Group’s business does not cause an 
adverse impact on the environment. 
Human rights policy 
Actual Experience has adopted a formal 
equal opportunities policy which is 
contained in its employee handbook. 
The aim of the policy is to ensure that 
there is no discrimination against 
any employee or job applicant either 
directly or indirectly on the grounds of 
race, sex, disability, sexual orientation, 
marriage or civil partnership, pregnancy 
or maternity, religion or belief, or age. 
Employees 
As at 30 September 2016 the Group 
employed 57 people in three offices 
(2015 : 33 people), of which 45 were 
male and 12 were female. As at the date 
of this document of the seven senior 
members of management, one is female. 
Directors 
Details of the Directors who served during 
the year ending 30 September 2016 are 
noted in the Remuneration Report. All 
seven of the Directors serving on the 
Board at the year end were male. 
On behalf of the Board. 
Steve Bennetts 
Chief Financial Officer 
18 January 2017  Actual Experience plc ANNUAL REPORT 2016
20
Actual Experience plc ANNUAL REPORT 2016
PRINCIPAL RISKS AND UNCERTAINTIES
Risk Management Framework 
In common with all businesses Actual Experience is exposed to risks and 
uncertainties as an inherent part of creating value for its shareholders. 
The Board recognises that effective risk management is fundamental to the Group’s 
ability to meet its strategic objectives and it is the Board’s responsibility to ensure that 
risk is appropriately managed across the Group. Following a review during the year 
the Board approved an enhanced Risk Management Framework: fundamental to this 
are the formation of a Risk Committee and the establishment of a new comprehensive 
Risk Policy. The focus during 2017 will be to continue this momentum and ingrain risk 
management activities into all aspects of our business.
The Risk Committee is chaired by Non-executive Director Paul Spence and has 
functional representation from senior management, including the CEO and CFO.  
The Committee meets approximately once per quarter and reports their findings  
to the Board.
The Risk Policy defines how and at what frequency risks shall be reviewed. A monthly 
risk management team has been formed with participation from key operational 
managers. Each representative is responsible for the evaluation and implementation  
of risk mitigation within their functional areas. 
It is the responsibility of the monthly risk team to maintain the master risk register. 
This register lists recognised risks and categorises them into risk themes. Resource 
and mitigation priorities are assessed based on likelihood and impact of risk 
occurrence. 
Actual Experience Board (Risk Related Activities)
 ■ Agrees risk governance framework
 ■ Sets level of risk appetite
 ■ Approves Risk Policy
Board Risk Committee 
Terms of reference
 ■ Reviews Risk Management Framework and effectiveness
 ■ Reviews key residual risk
 ■ Recommends to Board appropriate levels of risk appetite
 ■ Recommends changes to policy
Master Risk Register
Risk Management Team
 ■ Operational review and management of risk
 ■ Allocation of risk to owners and agree risk assessment
 ■ Implementation of risk mitigation
 ■ Funding and resource allocations Notice of AGM Glossary of terms Sources Governance
21
Actual Experience plc ANNUAL REPORT 2016
Strategic report Financial statements
The key challenges, risks and uncertainties facing the Group arise from the early stage of the Group’s maturity, the anticipated rapid 
growth in its operations, and the constantly changing nature of associated technologies such as mobile telephony and cloud computing.
The Group’s financial risks are detailed in note 3 to the consolidated financial statements. The Board considers that the principal 
operational risks relating to Actual Experience’s ability to achieve its strategic operations are as follows:
Description of risk Mitigation of risk
Technology ownership, change and competition
Fundamental to the Group’s business is a combination of patents and 
know-how. Our success will, in part, depend on our ability to maintain 
adequate protection of this intellectual property and know-how.
Our revenue and profitability are affected by the extent to which there is 
increasing requirement for, and development by our competitors of, 
additional product features and capabilities. Significant investments are 
made in new product development to address these requirements, and 
there can be no guarantee that we will be able to generate sufficient 
revenue to offset the associated development costs. 
There are also risks relating to difficulties and delays in the development 
process of new products and features, and their acceptance by customers. 
If a future competitor successfully launches new products or features, 
which we are unable to match, then we could lose market share with a 
corresponding impact on our operational results.
Product protection and innovation
The Group retains the services of a leading patent attorney and ensures 
that all reasonable steps are taken to protect its patented technology. In 
addition, enhanced procedures have been introduced to ensure that 
critical know-how is identified and recorded, with appropriate controls over 
access to these records.
We have an ongoing programme, both internal and with our commercial 
partners, to constantly identify evolving customer needs and potential 
competitor advances. The resulting feedback informs our new product 
development priorities and helps to ensure that the Group maintains its 
technology leadership in the evolving digital experience quality 
management sector. We focus our development efforts on features that 
meet an identified market requirement and are likely to generate sufficient 
revenue to fund their development. We have developed internal processes 
for prioritising and reviewing our development projects.
Managing rapid growth
The anticipated rapid growth of our business may place a significant strain 
on our management, operational, and financial resources. If we are unable 
to address this growth in a timely and profitable manner, as a result of not 
being able to recruit skilled employees or effectively scale our operations 
then this could have a material adverse impact on our financial position.
Investing in operational excellence
The Board and management are continually reviewing and enhancing our 
internal controls and processes. A critical objective of this analysis is to 
ensure that capability to scale operations is a core consideration within 
each business function, and that all functions interoperate efficiently as 
required to deliver and support our services at scale.
Acceptance of the Group’s analytic services and pricing model
The Group is at an early stage of development and its ultimate success will 
depend on the acceptance of its analytic services and pricing model by 
channel partners. Successful engagement with large channel partners 
typically requires the completion of an extensive on-boarding process and 
the timescales for this are both lengthy and time consuming.
Developing improved customer engagement practices
Management has acquired considerable experience in partnering with 
large channel partners and seeks to apply best practice learning to drive 
efficiencies and improve its operational capabilities. 
While prioritising sales efforts on channel development the Group will 
continue to maintain a number of direct customer engagements to ensure 
a thorough understanding is maintained of both evolving digital experience 
quality management practices in the enterprise sector and the pricing 
characteristics of this service.
Dependence on key executives and personnel, and recruitment and 
retention of new talent
The Group is dependent on its senior management and skilled technical 
personnel. Whilst much of the Group’s know-how is documented, senior 
managers and members of the technical team each contribute valuable 
skills and know-how to the business and, despite contractual 
confidentiality agreements in favour of the Group, there can be no 
guarantee that those individuals will not join competitors or establish 
themselves in competition with the Group in the future.
Failure to retain the services of any of these people may adversely affect 
the Group’s ability to achieve its commercial objectives. In addition, the 
Group continues to expand rapidly and intends to recruit new employees in 
the UK and other countries. It is essential that the Group is able to attract 
employees of a high calibre to drive its future success.
Strengthening of the human resources function
The Group’s human resources function is led by an experienced consultant 
and continually seeks to optimise its recruitment activities and improve its 
employment practices. 
The Group believes that share-based compensation is a critical element of 
its ability to attract, retain, and motivate key talent and will continue to 
issue options in accordance with its policy in this area. The Group is in the 
process of introducing a defined contribution pension scheme and will add 
other employee benefits as required to ensure it remains competitive with 
market practice. 
Investment will continue to be made in human resource systems and 
procedures to ensure compliance with legislation and effective interactions 
with employees.
Information security
The Group regards information within the business as a key asset and 
recognises the risk and impact on the business of breaches to the integrity 
of information relating to the business.
Effective protection of information security and data integrity
The Group has in place systems and processes for the classification and 
control of access to information within a number of areas of the business, 
and the security around access to Company information continues to be 
strengthened by the enforcement of enhanced security processes and 
practices. The level of monitoring performed on the production cloud 
infrastructure is reviewed regularly to identify any areas that require 
improvement. The Company is vigilant to security vulnerability 
announcements in the industry to ensure that any protective action is 
taken as soon as practicable. Information integrity is protected by regular 
off-site backups, and disaster recovery and business continuity plans are in 
place to ensure robust sustainability of operations.
Principal Operational Risks  22
Actual Experience plc ANNUAL REPORT 2016
Stephen Davidson
Non-executive Chairman
Appointed to Board:
February 2014
Independent:
Yes
Board Committee 
Memberships:
Executive Board – Chairman
Remuneration Committee – 
Member
Nominations Committee – 
Chairman
Stephen is currently Non-
executive Chairman of JSE and 
AIM-listed Datatec Limited, 
Non-executive Director of 
Inmarsat plc, Informa plc, 
Restore plc and Jaywing plc. In 
his earlier career, Stephen was 
CFO, then CEO, of Telewest 
Communications plc and 
Vice Chairman of investment 
banking at WestLB Panmure.
Dave Page
Chief Executive Officer
Appointed to Board:
February 2014
Independent:
No
Board Committee 
Memberships:
Executive Board – Member
Nominations Committee – 
Member
Risk Committee – Member
Dave has diverse commercial 
and technical IT experience. 
For the last 18 years, he has 
advised on multinational 
corporate business systems, 
with roles in enterprise, 
outsourcing, software and 
hardware companies. Dave was 
the founding member of the 
management team at Nexagent, 
a venture funded software 
business acquired by EDS in 
2008. In 1998, Dave established 
and led the Consulting team for 
the $1 billion European Service 
Provider line of business at 
Cisco. Before this, Dave worked 
at IBM Global Services, BT 
Global Services and NatWest 
on numerous aspects of 
corporate IT infrastructure.
Steve Bennetts
Chief Financial Officer
Appointed to Board:
February 2014
Independent:
No
Board Committee 
Memberships:
Executive Board – Member
Risk Committee – Member
Steve joined Actual Experience 
in October 2013. He qualified 
as a Chartered Accountant 
with Ernst & Young and 
subsequently has spent most 
of his career in the technology 
sector. Initially Steve worked 
as EMEA Finance Director 
at several Nasdaq quoted 
technology companies where 
he gained valuable international 
experience as well as leading 
the accounting, HR, legal, and 
administrative functions. This 
period included leadership 
of the team put in place to 
establish Amazon’s European 
operations, including managing 
the early hyper-growth in the 
UK and Germany. Subsequently 
Steve has worked at VC 
funded UK-based technology 
companies; a highlight of this 
period included the trade sale 
of Content Technologies for 
approximately $1 billion.
Robin Young
Chief Operating Officer
Appointed to Board:
September 2014
Independent:
No
Board Committee 
Memberships:
Executive Board – Member
Risk Committee – Member
Robin was appointed Chief 
Operating Officer in October 
2015, having previously joined 
the Board as a Non-executive 
Director in September 2014. 
Robin has extensive CIO, COO, 
technology and operations 
experience, serving at 
blue-chip public companies 
including Mitchells & Butlers, 
GlaxoSmithKline, Procter 
& Gamble and Ford Motor 
Company. He also brings 
considerable City knowledge 
and expertise having spent 
almost a decade with HBOS 
and Citigroup.
BOARD OF DIRECTORS Notice of AGM Glossary of terms Sources
23
Actual Experience plc ANNUAL REPORT 2016
Governance Strategic report Financial statements
Sir Bryan Carsberg
Non-executive Director
Appointed to Board:
July 2014
Independent:
Yes
Board Committee 
Memberships:
Executive Board – Member
Audit Committee – Chairman
Remuneration Committee – 
Member
The former Director General 
of OFT and Oftel, Sir Bryan 
Carsberg brings to the 
Board vast experience of the 
communications industry. He 
was instrumental in introducing 
competition regulation in the 
telecoms industry, has held 
Board positions with Cable & 
Wireless Communications plc, 
Inmarsat plc and RM plc, and in 
2002 was Expert Adviser to the 
Joint Parliamentary Committee 
to undertake pre-legislative 
scrutiny of the proposed new 
Communications Bill, now the 
Communications Act, 2003. His 
expertise will be particularly 
valuable in Actual Experience’s 
on-going work in improving the 
digital quality of the internet 
and project work with Ofcom.
Dr Mark Reilly
Non-executive Director
Appointed to Board:
February 2014
Independent:
No
Board Committee 
Memberships:
Executive Board – Member
Audit Committee – Member
Remuneration Committee – 
Chairman
Nominations Committee – 
Member
Mark is Head of the Technology 
Division of IP Group plc, one 
of the UK’s leading intellectual 
property commercialisation 
specialists and an investor in 
Actual Experience. He has led 
investments in, and played a key 
role in the growth of, numerous 
innovative high-tech companies 
such as Ultrahaptics Ltd and 
Mirriad Ltd. He has overseen 
successful IP Group exits such 
as mobile software company 
Overlay Media (sold to inMobi in 
2012) and AIM-listed Tracsis plc. 
Prior to joining IP Group, Mark 
was the founder and Managing 
Director of Remarkable 
Innovation, a Singapore-based 
technical due diligence company. 
He spent his early career in the 
ICT sector, working with a range 
of organisations from blue-chip 
multinationals and NGOs to 
early stage start-ups. Mark holds 
a PhD in Engineering from the 
University of Cambridge.
Paul Spence
Non-executive Director
Appointed to Board:
February 2016
Independent:
Yes
Board Committee 
Memberships:
Executive Board – Member
Risk Committee – Chairman
Audit Committee – Member
Nominations Committee – 
Member 
Paul has spent much of his 
career with Capgemini and its 
predecessor companies, during 
which time his roles included 
deputy group CEO and CEO of 
Capgemini Global Outsourcing 
Services. He has extensive 
experience of the outsourcing 
industry in both the public and 
private sectors, as well as broad 
international experience, having 
lived in and been responsible 
for, at various times, the North 
American, Latin American, 
Australian, Asian, and European 
markets. Paul is a graduate 
of the Wharton School at the 
University of Pennsylvania and 
is currently a Non-executive 
Director of G4S. 24
Actual Experience plc ANNUAL REPORT 2016
The Directors present their report and audited consolidated 
financial statements of the Group and of the Company for the  
year ended 30 September 2016 . These will be laid before the 
shareholders of the Company at the next Annual General  
Meeting (AGM).
General information and principal activities
Actual Experience plc is listed on the AIM market of the London 
Stock Exchange (LSE:ACT). The Company is incorporated in 
England and Wales, registration number 06838738, and the 
address of its registered office is Quay House, The Ambury,  
Bath BA1 1UA .
The principal activity of the Group is the provision of digital 
experience quality analytics.
Results and dividends
The results of the Group for the year ended 30 September 2016 are 
set out in the Consolidated Statement of Comprehensive Income 
on page 34. 
The Directors do not propose payment of a dividend for the year 
ended 30 September 2016 (2015 : nil).
Review of the year
A summary of the Group’s progress and development is set out in 
the Chairman’s Statement, the Chief Executive’s Statement, and 
the Financial Review, which form part of the Strategic Report on 
pages 1 to 21 . This analysis includes comments on the position of 
the Group at the end of the financial year, an indication of likely 
future developments in the business of the Group and details of 
the Group’s activities in the field of research and development.
Directors
The Directors of the Company who served during the year and up 
to the date of approval of the financial statement are as follows:
 ■ Stephen Davidson (Non-executive Chairman)
 ■ Dave Page (Chief Executive Officer)
 ■ Steve Bennetts (Chief Financial Officer and Company Secretary)
 ■ Robin Young (Chief Operational Officer)
 ■ Sir Bryan Carsberg (Non-executive Director)
 ■ Dr Mark Reilly (Non-executive Director)
 ■ Paul Spence (Non-executive Director)
Short biographies of each Director are provided on pages 22  
and 23.
Directors’ interests and indemnity arrangements
Directors’ interests in the shares of the Company, including  
family interests, are disclosed in the Remuneration Report on 
pages 31 to 32.
As permitted by the Articles of Association, in accordance with 
Section 234 of the Companies Act 2006, the Group has maintained 
insurance throughout the year for its Directors and officers against 
the consequences of actions brought against them in relation to 
their duties for the Company. No Director had, during or at the end 
of the year, a material interest in any contract which was significant 
in relation to the Group’s business except in respect of service 
agreements and share options and as disclosed in the 
Remuneration Report. The Group has granted no indemnities to 
any of its Directors against liability in respect of proceedings 
brought by third parties.
Share capital
Details of the Group’s issued share capital are shown in note 16 to 
the consolidated financial statements.
The share capital comprises one class of ordinary shares and these 
are listed on AIM. As at 31 December 2016 there were in issue 
37,517 ,588 fully paid ordinary shares. All shares are freely 
transferable and rank pari passu for voting and dividend rights.
Substantial holdings
As at 31 December 2016 , shareholders holding more than 3% of 
the share capital of Actual Experience plc were as follows:
 Name of shareholder
Number of 
shares
% of voting 
rights
 IP Group plc 9,343,223 24.91%
 Henderson Global Investors 6,070,974 16.18%
 M&G 5,563,157 14.83%
 Mr Michael Edge 3,195,000 8.52%
 Queen Mary University of London 2,610,000 6.96%
 Mr Dave Page 1,972,368 5.27%
 Professor Jonathan Pitts 1,919,750 5.12%
 Ruffer 1,578,949 4.21%
 Mr Rob Giles 1,216,500 3.24%
Save as referred to above, the Directors are not aware of any persons 
as at 31 December 2016 who were interested in three percent or more 
of the voting rights of the Company or could directly or indirectly, 
jointly or severally, exercise control over the Company.
Financial risk management objectives and policies
The Group’s financial risk management objectives and policies are 
shown in note 3 to the consolidated financial statements. The main 
risks arising from the Group’s financial instruments are interest rate 
risk, exchange rate risk, credit risk, and liquidity risk, which are 
continuously monitored by the Board. The Group extends credit 
only to recognised creditworthy third parties, and trade receivable 
balances are monitored to minimise the Group’s exposure to bad 
debts. Details of the Group’s trade receivables are shown in note 12 
to the consolidated financial statements.
DIRECTORS’ REPORT Notice of AGM Glossary of terms Sources
25
Actual Experience plc ANNUAL REPORT 2016
Governance Strategic report Financial statements
Employment policies
The Group is committed to providing equality of opportunity to all 
existing and prospective employees without unlawful or unfair 
discrimination. Full support is given to the employment and 
advancement of disabled persons.
Annual General Meeting
The AGM will be held at 11. 30am on 3 March 2017 at the offices of 
Henderson Global Investors, 201 Bishopsgate, London EC2M 3AE. 
On pages 61 and 62 is the Notice of the AGM, which gives details 
of the resolutions to be proposed to shareholders.
Independent auditors
The independent auditors, PricewaterhouseCoopers LLP, have 
indicated their willingness to continue in office and a resolution 
that they be reappointed will be proposed at the AGM.
Statement of disclosure of information to the auditors
Each of the persons who are Directors of the Company at the date 
when this report was approved has confirmed that:
 ■ so far as the Director is aware, there is no relevant audit 
information of which the Company and the Group’s auditors are 
unaware, and
 ■ the Director has taken all the steps that ought to have been 
taken as a Director in order to be aware of any relevant audit 
information and to establish that the Company and Group’s 
auditors are aware of that information.
The Strategic Report and Directors’ Report were approved and 
signed by order of the Board
Steve Bennetts
Chief Financial Officer and Company Secretary
18 January 2017 26
Actual Experience plc ANNUAL REPORT 2016
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 prepared the Group and parent Company financial 
statements in accordance with International Financial Reporting 
Standards (IFRSs) as adopted by the European Union. Under 
company law the Directors must not approve the financial 
statements unless they are satisfied that they give a true and fair 
view of the state of affairs of the Group and the Company and of 
the profit or loss of the Group for that period. In preparing these 
financial statements, the Directors are required to: 
 ■ select suitable accounting policies and then apply them 
consistently;  
 ■ make judgements and accounting estimates that are 
reasonable and prudent;  
 ■ state whether applicable IFRS as adopted by the European 
Union have been followed, subject to any material departures 
disclosed and explained in the financial statements; and  
 ■ prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the Company and the 
Group will continue in business.  
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Company’s 
transactions and disclose with reasonable accuracy at any time the 
financial position of the Company and Group and enable them to 
ensure that the financial statements comply with the Companies 
Act 2006. They are also responsible for safeguarding the assets of 
the Company and Group and hence for taking reasonable steps for 
the prevention and detection of fraud and other irregularities.  
The Directors are responsible for the maintenance and integrity of 
the Company’s website. Legislation in the United Kingdom 
governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions.  
DIRECTORS’ RESPONSIBILITIES Notice of AGM Glossary of terms Sources
27
Actual Experience plc ANNUAL REPORT 2016
Governance Strategic report Financial statements
On behalf of the Board I am pleased to present the Actual 
Experience plc Corporate Governance Report for the year 
ended 30 September 2016.
In this report we provide an overview of our corporate 
governance policies. It highlights the roles and 
responsibilities of the Board, its members and Committees 
and outlines the Group’s management structure and controls.
The Directors recognise the importance of sound corporate 
governance and remain committed to delivering the long-
term success of the Group through an effective framework of 
leadership, management and controls.
Stephen Davidson
Chairman
18 January 2017
Actual Experience is an AIM-quoted company and, accordingly, 
compliance with the UK Corporate Governance Code (the Code)  
is not mandatory. However, the Group remains committed to high 
standards of corporate governance and seeks to comply with the 
Code to the extent practicable for a public company of its size.
The report set out below describes how the Company applies certain 
principles identified in the Code. In addition, the Company seeks to 
follow the recommendations of the Quoted Companies Alliance in 
relation to the corporate governance of companies on AIM. 
Board composition
Actual Experience is led by a strong and effective Board of 
Directors. The Board structure comprises the following individuals:
Executive:
Dave Page Chief Executive Officer
Steve Bennetts Chief Financial Officer
Robin Young Chief Operating Officer
Non-executive:
Stephen Davidson Chairman 
Sir Bryan Carsberg
Dr Mark Reilly
Paul Spence
The Board considers that it contains a range of skills, experience 
and knowledge that is appropriate for the business. Furthermore, 
the Board members are of sufficient calibre to bring independent 
judgement of issues of strategy, performance, resources, and 
standards of conduct, which are vital to the success of the Group. 
The Board believes that it operates in an open and constructive 
manner and works effectively.
Brief biographies of the Directors, together with their membership 
of Board Committees, are set out on pages 22 to 23.
Independence of Non-executive Directors
The Board considers many criteria in assessing the independence 
of the Non-executive Directors including the criteria recommended 
by the Quoted Companies Alliance. The Non-executive Chairman 
and the Non-executive Directors are all considered by the Board to 
be independent of management and free of any relationship which 
could materially interfere with the exercise of their independent 
judgement, subject to the following: Dr Mark Reilly is an employee 
of the Company’s largest shareholder, IP Group.
Board operation
The Board met five times during the year ended 30 September 
2016 , excluding ad hoc meetings convened solely to deal with 
procedural matters. Attendance at the scheduled Board meetings 
during the year was as follows:
 Number of scheduled meetings 5
 Stephen Davidson (Chairman) 5
 Sir Bryan Carsberg 5
 Dr Mark Reilly 5
 Paul Spence
1
3
 Dave Page 5
 Steve Bennetts 5
 Robin Young 5
1 Appointed February 2016
In addition to the formal scheduled meetings the Board held 
informal discussions with Executive Directors and senior 
operational managers on strategic business development and 
other topics important to the Group’s progress throughout the year. 
The Chairman provides leadership to the Board. He is responsible for 
setting the agenda for Board meetings, ensuring that the Directors 
receive, on a timely basis, the information that they need to participate 
in Board meetings, and that the Board has sufficient time to discuss 
issues on the agenda, especially those relating to strategy and 
governance. The Chairman is available to shareholders to discuss 
strategy and governance issues, and any views arising from this route 
are also communicated to the Board as a whole.
The Chief Executive Officer is responsible for leadership of the 
Actual Experience management team and its employees on a 
day-to-day basis. In conjunction with senior management he is 
responsible for the execution of strategy approved by the Board 
and the implementation of Board decisions.
The Board is collectively responsible for the long-term success of 
Actual Experience. Its principal role is to provide leadership for the 
Group within a framework of prudent and effective controls, which 
enables risk to be assessed and managed. The Board considers the 
management team’s strategic proposals and, following a rigorous 
review, determines the Group’s strategy and ensures that the 
necessary resources are in place for the management team to execute 
that strategy.
CORPORATE GOVERNANCE REPORT 28
Actual Experience plc ANNUAL REPORT 2016
The Board has a schedule of matters reserved for its approval 
which includes strategy, acquisition and disposal of subsidiaries 
and intellectual property, annual budgets and progress to the 
achievement of these budgets, reviews of any significant risks 
facing the Group, receiving reports on the views of Company 
shareholders, consideration of major capital projects, and 
significant financing matters.
The Board has delegated all authorities other than those contained 
in the schedule of reserved matters to the Executive Directors on 
the understanding that they will at all times act in accordance with 
the best interests of the Group, its shareholders and employees, 
and that their actions will be consistent with the Group’s financial 
and strategic plans and objectives and in conformity with relevant 
legislation and best practice and that they will report regularly to 
the Board on the execution of these responsibilities.
Conflicts of interest
To address the provisions of Section 175 of the Companies Act 
2006 relating to conflicts of interest, the Company’s Articles of 
Association allow the Board to authorise situations in which a 
CORPORATE GOVERNANCE REPORT continued
Board Committees
The Board has delegated certain powers and duties to the Board Committees, all of which operate within clearly defined terms of 
reference and in accordance with the Code, where applicable. The Code recommends that all the members of the Remuneration and the 
Audit Committee are independent Non-executive Directors; while seeking to follow this recommendation as closely as practicable, as 
noted above, Dr Reilly is considered not to be independent due to his employment by IP Group. As allowed by the Code, the Chairman is 
a member of, but not Chairman of, the Remuneration Committee.
The workload of the Committees is greater than the scheduled meetings would indicate as ad hoc meetings and communications 
between meetings are frequently required.
BOARD COMMITTEES
Audit  
Committee
The Audit Committee 
determines and examines 
matters relating to the financial 
affairs of Actual Experience 
including the terms of 
engagement of the Company’s 
auditors and, in consultation with 
the auditors, the scope of the 
audit. It receives and reviews 
reports from management and 
the Company’s auditors relating 
to the half yearly and annual 
financial statements and the 
accounting and the internal 
control systems in use 
throughout the Company.
Nominations 
Committee
The Nominations Committee 
monitors the size and 
composition of the Board and 
the other Board Committees, is 
responsible for identifying 
suitable candidates for Board 
membership and monitors the 
performance and suitability of 
the current Board on an 
ongoing basis.
Chairman:  
Sir Bryan Carsberg
Dr Mark Reilly
Paul Spence 
Chairman:  
Dr Mark Reilly
Stephen Davidson
Sir Bryan Carsberg
Chairman:  
Stephen Davidson
Dave Page
Dr Mark Reilly
Paul Spence
Chairman:  
Paul Spence
Steve Bennetts
Dave Page
Robin Young
Remuneration 
Committee
The Remuneration Committee 
reviews and makes 
recommendations in respect of 
the Directors’ remuneration and 
benefits packages, including 
share options and the terms of 
their appointment. The 
Remuneration Committee also 
makes recommendations to the 
Board concerning the allocation 
of share options to employees 
under the Share Option 
Scheme.
Risk  
Committee
The Risk Committee determines 
the overall process to identify, 
manage and control risk within 
Actual Experience. It is 
responsible for developing the 
Risk Policy and approving any 
subsequent changes to its 
content. The Risk Committee 
receives reports from 
management on the residual 
risks within Actual Experience 
and determines the appropriate 
level of risk appetite for the 
Company.
Director has, or may have, a conflict of interest. Directors are 
required to give notice of any potential situation or transactional 
conflict that are to be considered at the next Board meeting and, if 
considered appropriate, conflicts are authorised. Directors are not 
permitted to participate in such considerations or to vote regarding 
their own conflicts.
The Board has received no notice from Directors of potential or 
actual conflicts of interest.
Reappointment of Directors
The Company’s Articles of Association require that at each Annual 
General Meeting (the AGM) one-third of Directors shall retire and 
seek reappointment by shareholders. Additionally, any new Director 
appointed by the Board is required by the Articles to retire at the 
next AGM and to seek appointment by shareholders.
Insurance
The Board has in place Directors’ and Officers’ Liability insurance. Notice of AGM Glossary of terms Sources
29
Actual Experience plc ANNUAL REPORT 2016
Governance Strategic report Financial statements
Audit Committee
The Audit Committee meets at least three times a year and reports 
to the Board its conclusions and recommendations on matters 
related to the interim and annual financial statements and the 
effectiveness of internal controls and risk management. It 
discusses with management on an ongoing basis the reporting of 
operational results and the financial condition of the Group and 
presents its findings to the Board.
Details of the membership and attendance at Audit Committee 
meetings during the year are shown below: 
 Number of scheduled meetings 3
 Sir Bryan Carsberg 3
 Dr Mark Reilly 3
 Paul Spence
1
 1
 Dave Page
2
3
 Steve Bennetts
2
3
1  Appointed February 2016
2  By invitation
The Board considers that the members of the Committee  
have sufficient competence to understand, analyse and when 
necessary challenge the management accounts and public 
financial statements.
Executive Directors and a representative of the auditors are 
normally invited to attend meetings of the Committee. The  
auditors also have unrestricted access to the Chairman of the  
Audit Committee.
In addition, the Committee has reviewed the necessity for the 
establishment of an internal audit function but considers that, given 
the present size and complexity of the Group and the close 
involvement of the Executive Directors in the operational 
management of the business, there is currently no requirement for 
this function.
Remuneration Committee
The composition and activities of the Remuneration Committee  
are as described in the Directors’ Remuneration Report on pages 
31 to 32.
Risk Committee
The Risk Committee was formed during the year and met twice 
during this period. It is intended that, in subsequent years, the 
Committee will meet at least four times each year. The Risk 
Committee advises the Board on the Group’s overall risk appetite, 
develops the Group’s risk management strategy, advises the Audit 
Committee and the Board on risk exposures, reviews the level of 
risk within the Group and assesses the effectiveness of the Group’s 
risk management systems. 
Details of the membership and attendance at Risk Committee 
meetings during the year are shown below: 
 Number of scheduled meetings 2
 Paul Spence 2
 Dave Page 1
 Steve Bennetts 2
 Robin Young 1
Senior managers are normally invited to attend meetings of the 
Committee. 
Further information on the Group’s management of risk may be 
found on pages 20 to 21 .
Nominations Committee
The Nominations Committee meets as and when required, with its 
primary functions being to provide a formal and transparent 
procedure for the appointment of new Directors to the Board and 
to discuss issues relating to Board and Committee composition 
and balance as well as succession planning. 
The Nominations Committee comprises Stephen Davidson, who is 
Chairman, Dr Mark Reilly, Paul Spence, and Dave Page. The 
Committee met on one occasion during the year; the meeting was 
attended by all members, except Mr Spence who had not been 
appointed to the Committee at the time of the meeting, with 
Sir Bryan Carsberg, Steve Bennetts and Robin Young in attendance.
Internal control and risk management
The Board is responsible for maintaining a sound system of internal 
financial and operational control and the ongoing review of their 
effectiveness. The Board’s measures are designed to manage, not 
eliminate, risk and such a system provides reasonable but not 
absolute assurance against material misstatement or loss. Whilst 
the Company, as a small AIM-listed company, is not required to 
comply with the full provisions of the ‘Internal Control Guidance for 
Directors on the Combined Code’ (The Turnbull Report), the Board 
considers that the internal controls do meet many of those 
requirements and are adequate given the size of the Company. 
Some key features of the internal control system are: 
i.  Management accounts information, budgets, forecasts and 
business risk issues are regularly reviewed by the Board who 
meet at least five times per year; 
ii.  The Company has operational, accounting and employment 
policies in place; 
iii.  The Board actively identifies and evaluates the risks inherent in 
the business and ensures that appropriate controls and 
procedures are in place to manage these risks; 
iv.  There is a clearly defined organisational structure; and 
v.  There are well-established financial reporting and control 
systems.  30
Actual Experience plc ANNUAL REPORT 2016
CORPORATE GOVERNANCE REPORT continued
Communication with shareholders and the AGM
The Board recognises that it is accountable to shareholders  
for the performance and activities of the Group and attaches 
considerable importance to maintaining regular dialogue and 
meetings with shareholders.
Apart from the AGM, the Group communicates with its 
shareholders by way of the Annual Report and financial statements 
and via the Company’s website (www.actual-experience.com) 
which is kept updated with preliminary and interim results, and 
announcements to the Stock Exchange. 
The AGM offers a valuable opportunity to shareholders to meet 
and communicate with the Board. At the meeting the Board gives a 
business presentation which is followed by a question and answer 
session, offering shareholders an opportunity to question the 
Board on any matters affecting the Group’s performance. The 
Chairmen of the Audit, Remuneration, Risk, and Nominations 
Committees are available at the AGM to answer questions. Details 
of the resolutions to be proposed at the AGM can be found in the 
Notice of Meeting on page 61 . This Notice of Meeting has been 
circulated to shareholders and is on the Company’s website.
Whistleblowing policy 
The Board has adopted a whistleblowing policy. The aim of the 
policy is to encourage all employees regardless of seniority to bring 
matters which cause them concern to the attention of the 
Non-executive Directors. 
Going concern
The Board is required to assess whether the Group has adequate 
resources to continue operations for the foreseeable future. After 
making enquiries, the Directors have a reasonable expectation that 
the Company and the Group will continue in operational existence 
for the foreseeable future (being a period of at least 12 months from 
the date of this report). For this reason, they continue to adopt the 
going concern basis for preparing the financial statements.
Approved by the Board of Directors and signed on its behalf.
Steve Bennetts 
Chief Financial Officer 
18 January 2017 Notice of AGM Glossary of terms Sources
31
Actual Experience plc ANNUAL REPORT 2016
Governance Strategic report Financial statements
DIRECTORS’ REMUNERATION REPORT
Remuneration Committee
The responsibilities of the Committee are to advise upon and make 
recommendations to the Board on the Group’s remuneration 
policies and, within the framework established by the Board, to 
recommend the remuneration of the Executive Directors. The CEO 
and CFO are invited to attend meetings to discuss remuneration 
packages and bonus schemes for senior executives within the 
Group, as well as the awarding of share options to such persons 
under any share scheme adopted by the Group.
Dr Mark Reilly chairs the Committee and Stephen Davidson and 
Sir Bryan Carsberg served on the Committee during the year. 
Attendance at the scheduled Committee meetings during the year 
was as follows:
 Number of scheduled meetings 5
 Dr Mark Reilly (Chairman) 5
 Stephen Davidson 5
 Sir Bryan Carsberg 5
 Dave Page
1
5
 Steve Bennetts
1
5
1 By invitation
The Remuneration Committee will assess the performance of the 
Executive Directors and other senior managers in the context of 
recommending their annual remuneration, bonus awards, and 
share option grants to the Board for final determination. The 
remuneration of the Non-executive Directors is recommended by 
the Executive Directors and takes account of the time spent on 
Board and Committee matters. The Board will make the final 
determination although no Director will participate in any 
discussion about his own remuneration.
An important objective of the Committee is to ensure that a 
competitive and appropriate base salary is paid to Directors and 
senior managers, together with incentive arrangements that are:
 ■ aligned with shareholders’ interests and with long-term 
business strategies;
 ■ measured against challenging and well-defined financial targets 
(which are set in advance); and
 ■ transparent and without ‘soft’ non-financial targets which could 
otherwise allow undue discretion to award bonuses that do not 
reflect actual financial performance.
Remuneration Policy
It is the Group’s policy that Executive Directors should have 
contracts with an indefinite term providing for a maximum of six 
months’ notice. In the event of early termination, the Directors’ 
contracts provide for compensation up to a maximum of basic 
salary for the notice period.
The main elements of the remuneration package for Executive 
Directors and senior management are:
Base annual salary
The base salary is reviewed annually by the Remuneration 
Committee and any change in salary is applied from the beginning 
of each calendar year. In determining the base annual salary the 
Remuneration Committee takes into account several factors, 
including the current position and development of the Group, 
individual contribution, and market salaries for comparable 
organisations.
Discretionary annual bonus arrangements
All Executive Directors and senior managers are eligible for a 
discretionary annual bonus which is paid in accordance with a 
bonus scheme developed by the Remuneration Committee. This 
takes into account performance against defined personal 
objectives and the financial performance of the Group.
Share incentive schemes
The Group operates share option plans, under which certain 
Directors and senior management have been granted options to 
subscribe for ordinary shares. All options are equity settled. The 
options are subject to service conditions, have an exercise price of 
between 9.09 pence and 282.50 pence and the vesting period is 
up to four years. If the options remain unexercised after a period of 
ten years from the date of grant, the options expire. The Group has 
no legal or constructive obligation to repurchase or settle the 
options in cash.
Remuneration Policy for Non-executive Directors
Non-executive Directors are employed on letters of appointment 
which have a fixed term of three years and which may be 
terminated at any time by either party with three months’ notice. 
Remuneration for Non-executive Directors is set by the Chairman 
and the Executive Members of the Board. Non-executive Directors 
do not participate in bonus schemes. Stephen Davidson, Sir Bryan 
Carsberg and Paul Spence have each been awarded share options, 
as shown on next page. 32
Actual Experience plc ANNUAL REPORT 2016
Directors’ remuneration (audited)
The remuneration of the Board Directors of Actual Experience plc during the year ended 30 September 2016 was:
Salary
and
fees
£
Bonus
£
 
Total
Year ended
30 September
2016
£
Total
Year ended
30 September
2015
£
Stephen Davidson
1
50,000 – 50,000 50,000
Dave Page 145,000 – 145,000 203,934
Steve Bennetts
1
115,000 – 115,000 126,250
Robin Young
1
112,500 – 112,500 27,084
Sir Bryan Carsberg
1
25,000 – 25,000 25,000
Dr Mark Reilly 25,000 – 25,000 24,000
Paul Spence
1
16,667 – 16,667 –
Total 489,167 – 489,167 456,268
1 In addition, certain Directors hold employee share scheme interests in the Group. Fair value share-based payment charges recognised in the Consolidated 
Statement of Comprehensive Income attributable to these Directors are: Stephen Davidson £5,159 (2015 : £11 ,503), Steve Bennetts £2,756 (2015 : £5,098), 
Robin Young £25,943 (2015 : £6,181 ), Sir Bryan Carsberg £5,159 (2015 : £11 ,503), and Paul Spence £19 ,284 (2015 : £nil).
Directors’ shareholdings (audited)
The interests of the Directors holding office at 30 September 2016 in the shares of the Company, including family interests, were:
Ordinary shares  
of 0.2p each
2016
Number
2016
%
Stephen Davidson 20,000 0.05
Dave Page 1,972,368 5.27
Steve Bennetts 175,500 0.47
Robin Young 7,200 0.02
Sir Bryan Carsberg – –
Dr Mark Reilly 85,500 0.23
Paul Spence – –
Directors’ interests in share options (audited)
Directors’ interests in share options, granted under either the Actual Experience plc Enterprise Management Incentive Share Option 
Scheme or the Actual Experience plc Unapproved Share Option Scheme, to acquire ordinary shares of 0.2 pence each in the Company 
at 30 September 2016 were:
At
 1 October 
2015
Granted
during 
year
At  
30 September 
2016 Exercise price Vesting dates
Steve Bennetts 227,250 – 227,250 14.25 pence 2014 – 2017
Steve Bennetts 22,500 – 22,500 54.50 pence 2014 – 2017
Stephen Davidson 70,000 – 70,000 186.50 pence 2015 – 2017
Robin Young 70,000 – 70,000 207.50 pence 2016 – 2018
Robin Young – 30,000 30,000 262.50 pence 2016 – 2019
Sir Bryan Carsberg 70,000 – 70,000 186.50 pence 2015 – 2017
Paul Spence – 70,000 70,000 277.50 pence 2016 – 2018
Share options are subject to employment conditions and vest in equal annual instalments over the vesting period.
Other transactions that occurred with Directors during the year are detailed in note 20 to the financial statements under Related Party 
Transactions.
Dr Mark Reilly
Chairman of the Remuneration Committee
18 January 2017
DIRECTORS’ REMUNERATION REPORT continued Financial statements Notice of AGM Glossary of terms Sources Governance Strategic report
33
Actual Experience plc ANNUAL REPORT 2016
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF 
ACTUAL EXPERIENCE PLC
Report on the group financial statements
Our opinion
In our opinion, Actual Experience plc’s group financial statements 
(the “financial statements”):
 ■ give a true and fair view of the state of the group’s affairs as at 
30 September 2016 and of its loss and cash flows for the year 
then ended;
 ■ have been properly prepared in accordance with International 
Financial Reporting Standards (“IFRSs”) as adopted by the 
European Union; and
 ■ have been prepared in accordance with the requirements of  
the Companies Act 2006.
What we have audited
The financial statements, included within the Annual 
Report, comprise:
 ■ the consolidated statement of financial position as at 
30 September 2016 ;
 ■ the consolidated statement of comprehensive income 
for the year then ended;
 ■ the consolidated statement of cash flows for the year 
then ended;
 ■ the consolidated statement of changes in equity for the 
year then ended; and
 ■ the notes to the financial statements, which include a 
summary of significant accounting policies and other 
explanatory information.
The financial reporting framework that has been applied in the 
preparation of the financial statements is IFRSs as adopted by 
the European Union, and applicable law.
In applying the financial reporting framework, the directors have 
made a number of subjective judgements, for example in respect 
of significant accounting estimates. In making such estimates, 
they have made assumptions and considered future events.
Opinion on other matter prescribed by the Companies 
Act 2006
In our opinion, the information given in the Strategic Report and 
the Directors’ Report for the financial year for which the financial 
statements are prepared is consistent with the financial 
statements.
Other matters on which we are required to report 
by exception
Adequacy of information and explanations received
Under the Companies Act 2006 we are required to report to you if, 
in our opinion, we have not received all the information and 
explanations we require for our audit. We have no exceptions to 
report arising from this responsibility. 
Directors’ remuneration
Under the Companies Act 2006 we are required to report to you if, 
in our opinion, certain disclosures of directors’ remuneration 
specified by law are not made. We have no exceptions to report 
arising from this responsibility. 
Responsibilities for the financial statements and the audit
Our responsibilities and those of the directors
As explained more fully in the Directors’ Responsibilities, the 
directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the 
financial statements in accordance with applicable law and 
International Standards on Auditing (UK and Ireland) (“ISAs (UK & 
Ireland)”). Those standards require us to comply with the Auditing 
Practices Board’s Ethical Standards for Auditors.
This report, including the opinions, has been prepared for and 
only for the company’s members as a body in accordance with 
Chapter 3 of Part 16 of the Companies Act 2006 and for no other 
purpose. We do not, in giving these opinions, accept or assume 
responsibility for any other purpose or to any other person to 
whom this report is shown or into whose hands it may come 
save where expressly agreed by our prior consent in writing.
What an audit of financial statements involves
We conducted our audit in accordance with ISAs (UK & Ireland). 
An audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material 
misstatement, whether caused by fraud or error. This includes an 
assessment of: 
 ■ whether the accounting policies are appropriate to the group’s 
circumstances and have been consistently applied and 
adequately disclosed; 
 ■ the reasonableness of significant accounting estimates made 
by the directors; and 
 ■ the overall presentation of the financial statements. 
We primarily focus our work in these areas by assessing 
the directors’ judgements against available evidence, forming 
our own judgements, and evaluating the disclosures in the 
financial statements.
We test and examine information, using sampling and other 
auditing techniques, to the extent we consider necessary to 
provide a reasonable basis for us to draw conclusions. We obtain 
audit evidence through testing the effectiveness of controls, 
substantive procedures or a combination of both. 
In addition, we read all the financial and non-financial information 
in the Annual Report to identify material inconsistencies with the 
audited financial statements and to identify any information that is 
apparently materially incorrect based on, or materially inconsistent 
with, the knowledge acquired by us in the course of performing the 
audit. If we become aware of any apparent material misstatements 
or inconsistencies we consider the implications for our report.
Other matter
We have reported separately on the company financial statements 
of Actual Experience plc for the year ended 30 September 2016 .
Colin Bates (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Bristol
18 January 2017 34
Actual Experience plc ANNUAL REPORT 2016
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 September 2016
Note
2016 
£
2015 
£
REVENUE 4 716,346 700,449
Cost of sales (954,812) (507,183)
GROSS (LOSS)/PROFIT (238,466) 193,266
Administrative expenses 5 (5,806,299) (2,617,679)
OPERATING LOSS (6,044,765) (2,424,413)
Finance income 7 61,946 12,977
LOSS BEFORE TAX (5,982,819) (2,411,436)
Tax 8 311,747 185,981
LOSS FOR THE YEAR (5,671,072) (2,225,455)
Other comprehensive expense:
Items that may be reclassified to profit or loss:
Foreign currency difference on translation of overseas operations (105,310) (4,684)
TOTAL COMPREHENSIVE LOSS FOR THE YEAR (5,776,382) (2,230,139)
LOSS PER ORDINARY SHARE
Basic and diluted 9 (15.21)p (7.12)p Financial statements Notice of AGM Glossary of terms Sources Governance Strategic report
35
Actual Experience plc ANNUAL REPORT 2016
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 September 2016
  Note
Share 
capital
£
Share 
premium
£
(Accumulated 
losses)/
retained 
earnings
£
Total 
equity
£
At 1 October 2014 57,688 134,346 2,974,264 3,166,298
Loss for the year – – (2,225,455) (2,225,455)
Other comprehensive expense for the year – – (4,684) (4,684)
Total comprehensive loss for the year – – (2,230,139) (2,230,139)
Issue of shares 16,339 15,231,024 – 15,247,363
Cost of share issues – (591,216) – (591,216)
Share-based payment expense – – 130,730 130,730
At 30 September 2015 74,027 14,774,154 874,855 15,723,036
Loss for the year – – (5,671,072) (5,671,072)
Other comprehensive expense for the year – – (105,310) (105,310)
Total comprehensive loss for the year – – (5,776,382) (5,776,382)
Issue of shares 16 869 61,016 – 61,885
Share-based payment expense 19 – – 233,361 233,361
At 30 September 2016 74,896 14,835,170 (4,668,166) 10,241,900 36
Actual Experience plc ANNUAL REPORT 2016
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 September 2016
Note
2016
£
2015
£
ASSETS
Non-current assets
Property, plant and equipment 10 281,476 44,671
Intangible assets 11 516,041 366,386
TOTAL NON-CURRENT ASSETS 797,517 411,057
Current assets
Trade and other receivables 12 352,129 286,397
Income tax receivable 8 340,259 192,000
Cash and cash equivalents 13 9,415,886 15,275,222
TOTAL CURRENT ASSETS 10,108,274 15,753,619
TOTAL ASSETS 10,905,791 16,164,676
LIABILITIES
Non-current liabilities
Deferred tax 8 (20,960) (8,858)
TOTAL NON-CURRENT LIABILITIES (20,960) (8,858)
Current liabilities
Trade and other payables 14 (642,931) (432,782)
TOTAL CURRENT LIABILITIES (642,931) (432,782)
TOTAL LIABILITIES (663,891) (441,640)
NET ASSETS 10,241,900 15,723,036
EQUITY
Share capital 16 74,896 74,027
Share premium 16 14,835,170 14,774,154
(Accumulated losses)/retained earnings 17 (4,668,166) 874,855
TOTAL EQUITY 10,241,900 15,723,036
Approved by the Board of Directors and authorised for issue on 18 January 2017 .
Stephen Davidson  Steve Bennetts
Chairman   Chief Financial Officer
Company number: 06838738 Financial statements Notice of AGM Glossary of terms Sources Governance Strategic report
37
Actual Experience plc ANNUAL REPORT 2016
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 September 2016
Note
2016
£
2015
£
Cash flows from operating activities
Loss before tax (5,982,819) (2,411,436)
Adjustment for non-cash items:
Depreciation of property, plant and equipment 10 49,376 13,747
Amortisation of intangible assets 11 345,129 141,313
Share-based payment charge 19 233,361 130,730
Finance income (61,946) (12,977)
Operating cash outflow before changes in working capital (5,416,899) (2,138,623)
Movement in trade and other receivables (63,961) (149,423)
Movement in trade and other payables 94,983 155,280
Cash flows used in operations (5,385,877) (2,132,766)
Tax received 175,590 159,410
Net cash flows used in operating activities (5,210,287) (1,973,356)
Cash flows from investing activities
Development of intangible assets 11 (494,784) (321,345)
Purchases of property, plant and equipment 10 (286,180) (42,006)
Finance income 61,946 12,977
Net cash outflow from investing activities (719,018) (350,374)
Cash flows from financing activities
Proceeds from issue of share capital, net of costs 16 61,885 14,656,147
Net cash inflow from financing activities 61,885 14,656,147
(Decrease)/increase in cash and cash equivalents (5,867,420) 12,332,417
Effect of exchange rate fluctuations on cash held 8,084 –
Cash and cash equivalents at start of year 15,275,222 2,942,805
Cash and cash equivalents at end of year 13 9,415,886 15,275,222 38
Actual Experience plc ANNUAL REPORT 2016
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS
for the year ended 30 September 2016
1 Basis of preparation
Actual Experience plc is a public limited company domiciled in the United Kingdom and incorporated in England. The financial 
statements of Actual Experience plc are audited financial statements for the year to 30 September 2016 . These include comparatives for 
the year ended 30 September 2015 .
The Company’s registered office is Quay House, The Ambury, Bath, BA1  1UA . 
Business combinations and basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its 
subsidiaries) made up to 30 September each year. Control exists when the Company has the power, directly or indirectly, to govern the 
financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that 
presently are exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the financial 
statements from the date that control commences until the date that control ceases.
Where the acquisition is treated as a business combination, the purchase method of accounting is used to account for the acquisition of 
subsidiaries by the Company.
The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed 
at the date of exchange. Acquisition costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities 
assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the cost of acquisition 
over the fair value of the Company’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of the acquisition is 
less than the fair value of net assets of the subsidiary acquired, the difference is recognised directly in the income statement.
Accounting policies adopted are consistent across the Group. All intra-Group balances and transactions, including unrealised profits 
arising from intra-Group transactions, are eliminated fully on consolidation. 
Going concern
At 30 September 2016 , the Group had a cash and cash equivalents position of £9,415 ,886 with no bank debt. The Directors have 
prepared detailed monthly projections of future cash flows for the remainder of the financial year to September 2017 and the subsequent 
financial year, 2018 . The base case forecast includes expected revenue growth, together with further investment in the cost base, leading 
to the commencement of positive monthly cash flows during the latter part of 2017 . Additional scenarios have been modelled reflecting 
differing revenue growth rates with corresponding adjustments to the level of investment in the Group’s cost base; these scenarios 
indicate broadly similar cash flow trends.
After due consideration, the Directors have concluded that there is a reasonable expectation that the Group has adequate resources to 
continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing 
the financial statements.
2 Significant accounting policies
The financial statements have been prepared under the historical cost convention, except where fair values are adopted as required, in 
accordance with International Financial Reporting Standards as adopted by the European Union (IFRS) and with the Companies Act 
2006 as applicable to companies using IFRS and to IFRS IC interpretation.
The principal accounting policies applied are set out below.
2.1 Foreign currencies
(a) Functional and presentational currency
Items included in the financial statements are measured using the currency of the primary economic environment in which the Group 
operates (the functional currency) which is UK sterling (£). The financial statements are presented in pounds sterling (£), which is the 
Group’s presentational currency. All amounts are rounded to the nearest £. The results and financial position of Actual Experience Inc 
have a functional currency different from the presentation currency and are translated into the presentation currency as follows:
 ■ assets and liabilities are translated at the closing rate at the date of the balance sheet;
 ■ income and expenses are translated at average exchange rates (unless this average is not a reasonable approximation of the 
cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the 
dates of the transactions); and
 ■ all resulting exchange differences are recognised in other comprehensive income and as a separate component of equity. 
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the 
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end 
exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Statement of 
Comprehensive Income.
Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Financial statements Notice of AGM Glossary of terms Sources Governance Strategic report
39
Actual Experience plc ANNUAL REPORT 2016
2.2 Revenue recognition
Revenue is recognised at the fair value of the consideration received or receivable for the sale of services in the ordinary course of 
business and is shown net of Value Added Tax. The Group primarily earns revenues from the sale of digital experience quality analytics 
services and associated consultancy services. 
Revenue from the digital experience quality analytics service is recognised over the period in which the services are performed, on a 
straight-line basis. Revenues from associated consultancy services and associated other services such as training are recognised when 
delivery to the customer has been completed. 
The difference between the amount of revenue recognised and the amount invoiced to a particular customer is included in the 
Consolidated Statement of Financial Position as deferred or accrued income as appropriate. Amounts included in deferred income are 
expected to be recognised within one year and are included within current liabilities.
2.3 Internally-generated intangible assets – research and development expenditure
Expenditure on research activities is recognised as an expense in the period in which it is incurred. Development costs incurred on 
specific projects are capitalised when all the following criteria are satisfied: 
(a)  completion of the intangible asset is technically feasible so that it will be available for use or sale;
(b)  the Group intends to complete the intangible asset and use or sell it;
(c)  the Group has the ability to use or sell the intangible asset and the intangible asset will generate probable future economic benefits 
over and above cost;
(d)  there are adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and 
(e)  the expenditure attributable to the intangible asset during its development can be measured reliably.
The Directors believe that the criteria for capitalising development costs have been met in respect of certain projects. Consequently the 
identifiable costs relating to these projects have been capitalised as intangible assets. The capitalised costs are being amortised over the 
estimated useful lives of those assets and the amortisation charge for the period is included within ‘Administrative expenses’ in the 
Consolidated Statement of Comprehensive Income. Expenses for research and development include associated wages and salaries, 
material costs and directly attributable overheads. 
The estimated useful life of the development costs capitalised is two years. Amortisation commences when the project is available for 
use within the business.
Intangible assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate 
that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount 
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For 
the purpose of assessing impairment, assets are grouped at the lowest levels for which there are largely independent cash flows 
(cash-generating units). Prior impairments of non-financial assets (other than goodwill) are reviewed for possible reversal at each 
reporting date. 
2.4 Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and any impairment losses. Cost includes the original 
purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Depreciation is 
charged so as to write off the costs of assets over their estimated useful lives, on the following basis:
Leasehold improvements  5 years straight-line
Fixtures, fittings and equipment 5 years straight-line
Computer equipment   3 years straight-line
The gain or loss arising on the disposal of an asset is determined as the difference between the sales proceeds and the carrying amount 
of the asset and is recognised in the Consolidated Statement of Comprehensive Income.
Impairment of property, plant and equipment
At each period end, the Group reviews the carrying amounts of its property, plant and equipment assets to determine whether there is 
any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is 
estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are 
independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash 
flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of 
money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount 
of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-
generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately. 40
Actual Experience plc ANNUAL REPORT 2016
2 Significant accounting policies continued
2.5 Financial instruments
Financial assets and financial liabilities are recognised in the Consolidated Statement of Financial Position when the Group becomes 
party to the contractual provisions of the instrument. Financial assets are de-recognised when the contractual rights to the cash flows 
from the financial asset expire or when the contractual rights to those assets are transferred. Financial liabilities are de-recognised when 
the obligation specified in the contract is discharged, cancelled or expired.
2.5.1 Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost. Appropriate provisions for estimated 
irrecoverable amounts are recognised in the Consolidated Statement of Comprehensive Income when there is objective evidence that 
the assets are impaired. 
2.5.2 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits, and other short-term highly liquid investments that are readily 
convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
2.5.3 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity 
instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
2.5.4 Trade and other payables
Trade payables are initially measured at their fair value and are subsequently measured at their amortised cost using the effective interest 
rate method; this method allocates interest expense over the relevant period by applying the ‘effective interest rate’ to the carrying 
amount of the liability.
2.6 Current and deferred tax
The tax expense/(credit) represents the sum of the tax currently payable or recoverable and the movement in deferred tax assets 
and liabilities.
Current tax is based upon taxable profit/(loss) for the year. Taxable profit/(loss) differs from net profit/(loss) as reported in the 
Consolidated Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in 
other years and it further excludes items that are never taxable or deductible.
The Group’s liability or receivable for current tax is calculated by using tax rates that have been enacted or substantively enacted by the 
reporting date.
Credit is taken in the accounting period for research and development tax credits, which have been claimed from HM Revenue and 
Customs, in respect of qualifying research and development costs incurred. Research and development tax credits have been accounted 
for on an accruals basis.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled 
based upon tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is charged or credited in the 
Consolidated Statement of Comprehensive Income, except when it relates to items credited or charged directly to equity, in which case 
the deferred tax is also dealt with in equity.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the 
financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the liability 
method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to 
the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such 
assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a 
business combination) of other assets and liabilities in a transaction that affects neither the profit nor the accounting period.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that 
sufficient taxable profits will be available to allow all or part of the asset to be recovered.
2.7 Operating leases
Rentals payable under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight-line basis 
over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which 
economic benefits from the lease asset are consumed.
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS continued
for the year ended 30 September 2016 Financial statements Notice of AGM Glossary of terms Sources Governance Strategic report
41
Actual Experience plc ANNUAL REPORT 2016
2.8 Share-based payments
The Company issues equity settled share-based payments to certain employees.
Equity settled share-based payments are measured at fair value at the date of grant and expensed in the Consolidated Statement of 
Comprehensive Income on a straight-line basis over the vesting period, along with a corresponding increase in equity. At each reporting 
date, the Company revises its estimate of the number of equity instruments expected to vest as a result of the effect of non-market-based 
vesting conditions. The impact of the revision of the original estimates, if any, is recognised in the Consolidated Statement of 
Comprehensive Income such that the cumulative expense represents the revised estimate, with a corresponding adjustment to 
equity reserves.
The fair value of share options is determined using a Black-Scholes model, taking into consideration the Directors’ best estimate of the 
expected life of the option.
Critical accounting estimates and areas of judgement
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of 
future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates 
and assumptions that have the most significant effects on the carrying amounts of the assets and liabilities in the financial information 
are discussed below:
Research and development costs
The assessment of when development expenditure meets the recognition criteria required for capitalisation requires judgement as to the 
technical feasibility and commercial viability of products and ideas that are under development. These judgements are subjective and, to 
the extent that actual circumstances differ, there can be an increase or decrease in the amount of expenditure expensed to the 
Consolidated Statement of Comprehensive Income. 
When development expenditure is capitalised, the Directors also make a judgement in respect of the expected useful lives of the 
intangible development costs and an appropriate amortisation charge is made. The useful economic life of the development costs is two 
years. A one-year reduction in the period over which such development costs are amortised would have increased loss before income 
tax by £371 ,000 (2015 : £141 ,000). A one-year increase in the period over which such development costs are amortised would have 
reduced loss before income tax by £115 ,000 (2015 : £47,000).
Equity settled share-based payments
The estimation of share-based payment costs requires the selection of an appropriate valuation method, consideration as to the inputs 
necessary for the valuation model chosen and the estimation of the number of awards that will ultimately vest. Inputs subject to 
judgement relate to the future volatility of the share price of comparable companies, the Group’s expected dividend yields, risk-free 
interest rates and expected lives of the options. The Directors draw on a variety of sources to aid in the determination of the appropriate 
data to use in such calculations. 
Recoverability of deferred tax assets
Deferred tax assets are recognised only to the extent that it is considered probable that those assets will be recoverable. This involves an 
assessment of when those deferred tax assets are likely to reverse and a judgement as to whether or not there will be sufficient taxable 
profits available to offset the tax assets when they do reverse. This requires assumptions regarding future probability and is therefore 
inherently uncertain. To the extent that assumptions regarding future probability change, there can be an increase or decrease in the level 
of deferred tax assets recognised which can result in a charge or credit to the Consolidated Statement of Comprehensive Income in the 
period in which the change occurs.
Changes in accounting policies
The following new and amended IFRS and IFRIC interpretations are mandatory as of 1 October 2015 unless otherwise stated and the 
impact of adoption is described below.
There are no other changes to IFRS effective in the year which have a material impact on the Group.
IFRS 13 Fair Value Measurement
IFRS 13 does not affect when fair value is used, but rather describes how to measure fair value where fair value is required or permitted 
by IFRS. There was no impact on the Group from the adoption of IFRS 13 .
Accounting standards and interpretations not applied
At the date of authorisation of these financial statements, the following IFRSs, IASs and Interpretations were in issue but not yet effective. 
Their adoption is not expected to have a material effect on the financial statements unless otherwise indicated:
 ■ IAS 1 : Disclosure Initiative (effective 1 January 2016 );
 ■ IAS 16 and IAS 38: Clarification of acceptable methods of depreciation and amortisation (effective 1 January 2016 ); 
 ■ IFRS 15 : Revenue from contracts with customers (effective 1 January 2017 );
 ■ IFRS 9: Financial Instruments (effective 1 January 2018 );
 ■ IFRS 16 : Leases (effective 1 January 2019 ); and
 ■ IAS 12 : Income taxes (effective 1 January 2016 ). 42
Actual Experience plc ANNUAL REPORT 2016
3 Financial risk management
The Board has overall responsibility for the determination of the Group’s risk management objectives and policies. The overall objective of 
the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group’s competitiveness and flexibility. 
The Group does not use derivative financial instruments such as forward currency contracts or similar instruments. The Group does not 
issue or use financial instruments of a speculative nature.
The Group is exposed to the following financial risks:
 ■ Credit risk
 ■ Liquidity risk
 ■ Market risk
To the extent that financial instruments are not carried at fair value in the Consolidated Statement of Financial Position, book value 
approximates to fair value at 30 September 2015 and 30 September 2016 .
Trade and other receivables are measured at fair value and amortised cost. Book values and expected cash flows are reviewed by the 
Board and any impairment charged to the Consolidated Statement of Comprehensive Income in the relevant period.
Cash and cash equivalents are held in either UK sterling or US dollars and are placed on deposits in UK and US banks. Trade and other 
payables are measured at book value and amortised cost.
Credit risk
Credit risk is the risk of loss to the Group if a customer or counterparty to financial instruments fails to meet its contractual obligation. 
Credit risk arises from the Group’s cash and cash equivalents and receivables balances. The concentration of the Group’s credit risk is 
considered by counterparty, geography and currency.
The Group gives careful consideration to which organisation it uses for its banking services in order to minimise credit risk. The Group 
has a significant concentration of cash held in accounts with two large banks in the UK, one institution with an A+ credit rating and one 
with a BBB+ credit rating (long term, as assessed by Fitch). The amounts of cash held on deposit with those banks at each reporting 
date can be seen in note 13 . All of the cash and cash equivalents held with those banks at each reporting date were denominated in UK 
sterling or US dollars. The Directors are satisfied that the level of risk inherent in holding the cash deposits with two banks is low given 
the credit ratings assessed. The Directors monitor the levels of cash held by the Group on a regular basis and, if necessary, will mitigate 
any perceived increase in the level of risk by spreading the cash deposits across other institutions.
The nature of the Group’s business and current stage of its development are such that individual customers can comprise a significant 
proportion of its trade and other receivables at any point in time. The Group mitigates the associated risk by close monitoring of the 
debtor ledger.
At 30 September 2016 , the Group’s trade receivables balance was £59,613 (30 September 2015 : £191 ,349). The carrying amount of 
financial assets recorded in the financial statements represents the Group’s maximum exposure to credit risk. An allowance for 
impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the 
recoverability of the cash flows. In the Directors’ opinion, there has been no impairment of financial assets at any point during the year.
No collateral is held by the Group as security in relation to its financial assets.
The Directors consider the above measures to be sufficient to control the credit risk exposure.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. This risk is managed by ensuring 
that sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The Group’s cash is held in 
bank accounts with notice periods no greater than three months and management continually monitors rolling cash flow forecasts to 
ensure sufficient cash is available for anticipated cash requirements.
At 30 September 2016 , the Group had £9,415 ,886 (30 September 2015 : £15 ,275,222) of cash and cash equivalents. 
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS continued
for the year ended 30 September 2016 Financial statements Notice of AGM Glossary of terms Sources Governance Strategic report
43
Actual Experience plc ANNUAL REPORT 2016
Market risk
Market risk is the risk of loss that may arise from changes in market factors such as interest rates and foreign exchange rates. The 
Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The Group’s exposure to foreign 
currency risk has been limited, as the majority of its invoicing and payments are in UK sterling. There are no significant balances held in 
foreign currencies at each reporting date and it has made no payments in foreign currencies other than US dollar and Euro. Accordingly, 
the Board has not presented any sensitivity analysis in this area as it is immaterial.
The carrying values of trade and other receivables, trade and other payables and cash and cash equivalents approximate their fair values 
due to their relatively short periods to maturity. Fair value measurements are determined in accordance with the following levels: 
Level 1 : Quoted prices (unadjusted) in active markets for identical assets and liabilities.
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. 
Level 3: Prices or valuations that require management inputs that are both significant to the fair value measurement and unobservable.
Fair values of all financial assets and liabilities are classified as Level 3 financial instruments, except cash and cash equivalents which is 
classified as Level 2.
Capital risk management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future 
development of the business.
The Group’s objective when managing capital is to maintain adequate financial flexibility to preserve its ability to meet financial 
obligations, both current and long term. The capital structure of the Group is managed and adjusted to reflect changes in economic 
circumstances. In determining how the Group should be financed, through a combination of debt and equity, the Board seeks to maintain 
a balance between the higher returns that might be possible with higher levels of borrowing and the advantages and security afforded by 
equity capital.
The Group’s capital is made up of share capital, share premium and retained earnings totalling at 30 September 2016 : £10 ,241 ,900  
(30 September 2015 : £15 ,723,036).
The Group funds its expenditures on commitments from existing cash and cash equivalent balances, primarily received from issuances of 
shareholders’ equity. There are no externally imposed capital requirements.
Financing decisions are made by the Board based on forecasts of the expected timing and level of capital and operating expenditure 
required to meet the Group’s commitments and development plans.
4 Segmental reporting
The information that is presented to the Chief Executive Officer, who is considered to be the Chief Operating Decision Maker (CODM), 
for the purposes of resource allocation and assessment of performance, is based wholly on the overall activities of the Group. Due to the 
current size and activities of the Group, there is a high degree of centralisation of activities. The Directors therefore consider that there is 
one operating, and hence one reportable segment for the purposes of presenting information under IFRS8; that of “Digital experience 
quality analytics services and associated consultancy services”. There are no differences between the segment results and the 
Consolidated Statement of Comprehensive Income. The assets and liabilities information presented to the CODM is consistent with the 
Consolidated Statement of Financial Position.
During the year ended 30 September 2016 the Group had three customers who generated more than 10 % of total revenue. These 
customers generated 30%, 18 % and 14 % of revenue respectively. 
During the year ended 30 September 2015 the Group had two customers who generated more than 10 % of total revenue. These 
customers generated 23% and 14 % of revenue respectively. 
An analysis of revenues by geographic location of customers is set out below:
2016
£
2015
£
United Kingdom 343,928 600,139
United States of America 357,093 74,818
Europe 5,325 3,712
Rest of the world 10,000 21,780
716,346 700,449 44
Actual Experience plc ANNUAL REPORT 2016
5 Loss from operations
Note
2016
£
2015
£
Loss from operations is stated after charging/(crediting) to administrative expenses:
Depreciation on property, plant and equipment 10 49,376 13,747
Amortisation of intangible assets 11 345,129 141,313
Operating lease rentals – land and buildings 286,907 80,507
Employee costs 6 3,724,443 1,847,726
Foreign exchange gains (144,889) (448)
Auditors’ remuneration:
 — Audit of these financial statements 28,550 28,550
 — Tax advisory services – 10,000
Total auditors’ remuneration 28,550 38,550
6 Employee costs
2016
Number
2015
Number
The average monthly number of persons (including Directors)  
employed by the Group during the year was:
Directors 7 5
Sales and support 28 11
Software development 17 9
Administration 4 3
56 28
2016
£
2015
£
The aggregate remuneration, including Directors, comprised:
Wages and salaries 3,605,951 1,829,613
Social security costs 380,824 208,728
Share-based expense (note 19) 233,361 130,730
  4,220,136 2,169,071
Directors’ remuneration comprised:
Emoluments for qualifying services 490,245 456,268
Directors’ emoluments disclosed above include £145 ,000 paid to the highest paid Director (2015 : £203,934); the Director did not exercise 
any share options in the year and no options are due under incentive plans.
The Remuneration Report on pages 31 to 32 detail Directors’ interests in share options.
There are no pension benefits for Directors.
Included within total employee costs of £4,220,136 (2015 : £2,169 ,071 ) is £494,784 (2015 : £321 ,345) which has been capitalised within 
development costs in accordance with IAS 38 (see note 11 ). The remaining £3,724,443, which is net of £909 foreign exchange,  
(2015 : £1 ,847 ,726) has been expensed in the Consolidated Statement of Comprehensive Income. 
7 Finance income
2016
£
2015
£
Bank interest receivable 61,946 12,977
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS continued
for the year ended 30 September 2016 Financial statements Notice of AGM Glossary of terms Sources Governance Strategic report
45
Actual Experience plc ANNUAL REPORT 2016
8 Taxation
Tax on loss on ordinary activities
2016
£
2015
£
Current tax:
UK Corporation tax on losses of the year (340,264) (192,000)
Overseas taxes 16,415 534
Deferred tax:
Origination and reversal of timing differences 12,102 5,485
Total tax credit (311,747) (185,981)
Factors affecting the current tax credits
The tax assessed for the year varies from the standard UK company rate of corporation tax as explained below:
2016
£
2015
£
Loss on ordinary activities before tax (5,982,819) (2,411,436)
Tax at the UK corporate tax of 20.00% (2015: 20.50%) (1,196,564) (494,344)
Effects of:
Expenses not deductible for tax purposes 134,841 59,683
Unrecognised deferred tax asset on losses 1,335,159 387,603
Tax relief in respect of exercise of share options (217,254) –
Research and development enhancement in respect of the current year (364,226) (138,693)
Prior year adjustment (5) –
Change in rate of tax used to calculate deferred tax liability (3,698) (230)
Tax credit for the year (311,747) (185,981)
The Group has tax losses carried forward of approximately £10 ,060,000 (2015 : £3,820,000).
The standard rate of corporation tax in the UK changed from 21 % to 20% from 1 April 2015 . Accordingly the Group’s losses for the 
accounting period are based on an effective rate of 20.00%.
During the year the Group has incurred qualifying expenditure on research and development projects which has given rise to tax credits 
due from HM Revenue and Customs to the Group of £340,259 (2015 : £192 ,000).
Deferred tax
Deferred tax relates to the following:
2016
£
2015
£
Accelerated depreciation for tax purposes 20,960 8,858
Deferred tax liability 20,960 8,858
Reconciliation of deferred tax liabilities
2016
£
2015
£
Balance at the beginning of the year 8,858 3,373
Charge to the Consolidated Statement of Comprehensive Income 12,102 5,485
Balance at the end of the year 20,960 8,858
At 30 September 2016 , the Group had unrecognised deferred tax assets totalling £1 ,710 ,288 (2015 : £732,776 ), which relate to losses. The 
Group has not recognised this asset in the Consolidated Statement of Financial Position due to the uncertainty in the timing of when it is 
probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised. 46
Actual Experience plc ANNUAL REPORT 2016
9 Loss per share
Basic loss per share is calculated by dividing the loss attributable to the owners of the parent by the weighted average number of 
ordinary shares in issue during the year. Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares 
in issue during the year to assume conversion of all dilutive potential ordinary shares.
The Company has one class of potentially dilutive ordinary shares, being those share options granted to employees where the exercise 
price is less than the average market price of the Company’s ordinary shares during the year. However, due to losses incurred in both the 
current and previous financial year there is no dilutive effect from the potential exercise of these dilutive shares.
2016
£
2015
£
Total loss attributable to the equity holders of the parent (5,671,072) (2,225,455)
No. No.
Weighted average number of ordinary shares in issue during the year 37,288,000 31,239,006
Loss per share
Basic and diluted on loss for the year (15.21)p (7.12)p
The weighted average number of shares in issue throughout the year is as follows:
2016 2015
Issued ordinary shares at the beginning of the year 37,013,338 28,844,225
Effect of shares issued in June 2015 – 2,394,781
Effect of shares issued in October 2015 118,532 –
Effect of shares issued in March 2016 154,363 –
Effect of shares issued in August 2016 1,767 –
Weighted average number of shares at the end of the year 37,288,000 31,239,006
10 Property, plant and equipment
Leasehold
improvements
£
Fixtures
fittings 
and
equipment
£
Computer
equipment
£
Total
£
Cost
At 1 October 2014 – 1,838 36,779 38,617
Additions – 7,171 34,835 42,006
At 30 September 2015 – 9,009 71,614 80,623
Additions 168,488 48,407 69,286 286,181
At 30 September 2016 168,488 57,416 140,900 366,804
Accumulated depreciation
At 1 October 2014 – 195 22,010 22,205
Charge for the year – 1,635 12,112 13,747
At 30 September 2015 – 1,830 34,122 35,952
Charge for the year 13,701 5,721 29,954 49,376
At 30 September 2016 13,701 7,551 64,076 85,328
Net book value
At 30 September 2016 154,787 49,865 76,824 281,476
At 30 September 2015 – 7,179 37,492 44,671
At 30 September 2014 – 1,643 14,769 16,412
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS continued
for the year ended 30 September 2016 Financial statements Notice of AGM Glossary of terms Sources Governance Strategic report
47
Actual Experience plc ANNUAL REPORT 2016
11 Intangible assets
Development
costs
£
Total
£
Cost
At 1 October 2014 226,125 226,125
Additions 321,345 321,345
At 30 September 2015 547,470 547,470
Additions 494,784 494,784
At 30 September 2016 1,042,254 1,042,254
Accumulated amortisation and impairment losses
At 1 October 2014 39,771 39,771
Charge for the year 141,313 141,313
At 30 September 2015 181,084 181,084
Charge for the year  345,129 345,129
At 30 September 2016 526,213 526,213
Net book value
At 30 September 2016 516,041 516,041
At 30 September 2015 366,386 366,386
At 30 September 2014 186,354 186,354
Amortisation and impairment charge
The amortisation of development costs is recognised within administrative expenses in the Consolidated Statement of Comprehensive Income.
12 Trade and other receivables
2016
£
2015
£
Trade receivables 59,613 191,349
Other receivables 117,622 30,204
Prepayments and accrued income 174,894 64,844
352,129 286,397
Contractual payment terms with the Group’s customers are typically 30 to 60 days.
There are no provisions for impairment losses in respect of trade and other receivables. There are no trade receivables past due and not 
impaired and there is no provision for impaired receivables in either 2016 or 2015 . The credit quality of those trade receivables not past 
due and not impaired is considered good. The Directors believe that the carrying value of trade and other receivables represents their fair 
value. In determining the recoverability of trade receivables the Board considers any change in the credit quality of the receivable from 
the date credit was granted up to the reporting date. For details on credit risk management policies, refer to note 3.
13 Cash and cash equivalents
Bank credit rating:
2016
£
2015
£
A+ 5,035,122 5,001,822
A2 – 47,751
A3 82,819 –
BBB+ 4,297,945 10,225,649
Cash and cash equivalents 9,415,886 15,275,222
The above gives an analysis of the credit rating of the financial institutions where cash balances are held. 48
Actual Experience plc ANNUAL REPORT 2016
13 Cash and cash equivalents continued
All of the Group’s cash and cash equivalents at 30 September 2016 are held in instant access current accounts or short-term deposit 
accounts. Balances are denominated in UK sterling (£) and US dollars ($) as follows:
2016
£
2015
£
Denominated in UK sterling 9,188,484 15,157,211
Denominated in US dollars 227,402 118,011
Cash and cash equivalents 9,415,886 15,275,222
The Directors consider that the carrying value of cash and cash equivalents approximates to their fair value. For details of credit risk 
management policies, refer to note 3.
14 Trade and other payables
2016
£
2015
£
Trade payables 140,737 48,246
Other tax and social security 115,920 57,984
Other creditors 9,963 6,687
Accruals 286,186 226,855
Deferred income 90,125 93,010
642,931 432,782
Trade and other payables principally comprise amounts outstanding for trade purchases and ongoing costs. They are non-interest 
bearing and are normally settled on 30-45 day terms. 
The Directors consider that the carrying value of trade and other payables approximate their fair value. 
The Group has financial risk management policies in place to ensure that all payables are paid within the credit time frame and no 
interest has been charged by any suppliers as a result of late payment of invoices during the year. 
15 Financial instruments
The principal financial instruments used by the Group, from which financial instrument risk arises are as follows:
 ■ Trade and other receivables
 ■ Trade and other payables
 ■ Cash and cash equivalents
The carrying values of trade and other receivables, trade and other payables and cash and cash equivalents approximate their fair values 
due to their relatively short periods to maturity.
Financial assets
The Group held the following financial assets:
2016
£
2015
£
Due within three months
Cash and cash equivalents 9,415,886 15,275,222
Trade receivables 59,613 191,349
Other receivables 63,768 18,144
9,539,267 15,484,715
Financial liabilities
The Group held the following financial liabilities held at amortised cost (non-derivatives):
2016
£
2015
£
Non-derivative financial liabilities
Due within one year
Trade payables 140,737 48,246
Other payables 296,149 233,542
Total financial liabilities 436,886 281,788
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS continued
for the year ended 30 September 2016 Financial statements Notice of AGM Glossary of terms Sources Governance Strategic report
49
Actual Experience plc ANNUAL REPORT 2016
16 Share capital
Number
Share 
capital
£
Share 
premium
£
Total
£
Total Ordinary shares of 0.2p each at 1 October 2015 37,013,338 74,027 14,774,154 14,848,181
Issue of shares in respect of the exercise of share options 434,500 869 61,016 61,885
Total Ordinary shares of 0.2p each as at 30 September 2016 37,447,838 74,896 14,835,170 14,910,066
As permitted by the provisions of the Companies Act 2006, the Company does not have an upper limit to its authorised share capital.
Changes to share capital during the year were as follows:
(i) 132 ,500 ordinary shares of 0.2p each were allotted at a price of 9.091 pence per share, for total cash consideration of £12 ,046, upon 
the exercise of share options granted in the Company’s share option schemes;
(ii) 298,000 ordinary shares of 0.2p each were allotted at a price of 14.255 pence per share, for total cash consideration of £42,480, upon 
the exercise of share options granted in the Company’s share option schemes;
(iii) 4,000 ordinary shares of 0.2p each were allotted at a price of 184.0 pence per share, for total cash consideration of £7,360, upon the 
exercise of share options granted in the Company’s share option schemes.
At 30 September 2016 , the Company had only one class of share, being ordinary shares of 0.2p each. 
17 Movement in (accumulated losses)/retained earnings reserve
(Accumulated 
losses)/
retained 
earnings 
£
At 30 September 2014 2,974,264
Loss for the year (2,225,455)
Other comprehensive expense (4,684)
Shared-based payment charge 130,730
At 30 September 2015 874,855
Loss for the year (5,671,072)
Other comprehensive expense (105,310)
Share-based payment charge 233,361
At 30 September 2016 (4,668,166)
18 Commitments
Operating lease commitments
The Group leases premises under operating lease agreements. The future aggregate minimum lease and service charge payments under 
operating leases are as follows:
 
2016
£
2015
£
Land and buildings:
Amounts due within one year 210,852 43,750
Amounts due between two and five years 627,027 –
Total 837,879 43,750
During the year the Company moved its head office to new leased premises in the UK. The Company’s tenancy agreement in respect of 
these premises commenced in February 2016 and terminates in September 2027 . The agreement has a break clause five years after the 
lease commencement date. The annual rent and service charge payable under this agreement is £203,630; the minimum payments 
disclosed above relate to the period up to the first break clause date. 
In addition, on 31 December 2015 , the Company entered into a three-year software licence and services agreement with a third party 
software supplier. At 30 September 2016 , the Company was committed to a cost of $840,221 (approximately £648,000) in respect of the 
remaining period of the licence and services agreement. 50
Actual Experience plc ANNUAL REPORT 2016
19 Share-based payments
Share options
The Company has a share option plan under which it grants options over ordinary shares to certain employees. Options are exercisable 
at a price equal to the estimated market price of the Company’s shares on the date of the grant. The vesting period for shares is usually 
four years. The options are settled in equity once exercised. If the options remain unexercised for a period after ten years from the date of 
grant, the options expire. Options are forfeited if the employee leaves the Group before the options vest. 
Details of the number of share options and the weighted average exercise price outstanding during the year are as follows:
Number of share interests Weighted 
average 
exercise price 
per share 
(pence) EMI options
Unapproved 
options Total
At 30 September 2014 2,061,975 220,000 2,281,975 51.00
Granted in the year 317,500 150,000 467,500 206.00
Exercised in the year (154,050) – (154,050) (12.20)
Forfeited in the year (135,000) – (135,000) (184.00)
At 30 September 2015 2,090,425 370,000 2,460,425 75.6
Granted in the year 470,000 155,000 625,000 272.40
Exercised in the year (434,500) – (434,500) (14.25)
Forfeited in the year (167,250) – (167,250) (249.30)
At 30 September 2016 1,958,675 525,000 2,483,675 124.30
There were 1 ,292,215 share options outstanding at 30 September 2016 (30 September 2015 : 1 ,294,717 ), which were eligible to be 
exercised. The remaining options were not eligible to be exercised as these are subject to employment period vesting conditions, some of 
which had not been met at 30 September 2016 . 
Options have a range of exercise prices from 9.09 pence per share to 282.50 pence per share and have a weighted contractual life of 
7.23 years.
Details of the outstanding share options are given below:
Grant date
Employees
entitled
Number of
options
Performance
conditions
Exercise
price(p)
Earliest
exercise
date
Expiry
date
19/03/2010 1 267,500 Time served 9.091 25/01/2011 19/03/2020
22/06/2011 2 111,700 Time served 9.091 15/10/2011 22/06/2021
17/10/2011 2 63,600 Time served 9.091 17/10/2011 17/10/2021
17/05/2012 1 57,500 Time served 14.255 16/08/2012 17/05/2022
21/05/2012 1 48,125 Time served 14.255 27/02/2013 21/05/2022
04/03/2013 4 324,750 Time served 14.255 11/06/2013 04/05/2023
01/10/2013 1 227,250 Time served 14.255 01/10/2014 01/10/2023
18/11/2013 1 69,500 Time served 14.255 11/11/2014 18/11/2023
23/12/2013 1 22,500 Time served 54.500 01/10/2014 23/12/2023
09/07/2014 2 140,000 Time served 186.500 09/07/2015 09/07/2024
21/07/2014 1 80,000 Time served 186.500 21/07/2015 21/07/2024
15/09/2014 3 115,000 Time served 184.000 06/01/2015 15/09/2024
24/10/2014 1 50,000 Time served 175.000 24/10/2015 24/10/2024
29/05/2015 4 185,000 Time served 207.500 25/11/2015 29/05/2025
05/06/2015 1 30,000 Time served 207.500 05/06/2016 05/06/2025
29/06/2015 6 87,500 Time served 212.500 29/05/2016 29/06/2025
24/07/2015 4 100,000 Time served 212.500 08/06/2016 24/06/2025
14/10/2015 10 198,750 Time served 262.500 17/08/2016 14/10/2025
07/03/2016 6 135,000 Time served 277.500 16/11/2016 07/03/2026
29/03/2016 1 20,000 Time served 282.500 29/03/2017 29/03/2026
26/05/2016 9 130,000 Time served 282.500 07/03/2017 26/05/2026
06/06/2016 1 10,000 Time served 282.500 06/06/2017 06/06/2026
13/06/2016 1 10,000 Time served 282.500 13/06/2017 13/06/2026
Outstanding 2,483,675
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS continued
for the year ended 30 September 2016 Financial statements Notice of AGM Glossary of terms Sources Governance Strategic report
51
Actual Experience plc ANNUAL REPORT 2016
The fair values were calculated using the Black-Scholes pricing model. The inputs into the model for options granted during the year 
were as follows:
Granted on
14 October
2015
Granted on
7 March
2016
Granted on
29 March
2016
Granted on
26 May
2016
Granted on
6 June
2016
Granted on
13 June
2016
Dividend yield 0% 0% 0% 0% 0% 0%
Expected volatility 19.8% 18.6% 18.4% 18.2% 18.2% 18.2%
Risk-free interest rate (%) 2.02% 2.02% 2.02% 2.02% 2.02% 2.02%
Life of options (years) 10 10 10 10 10 10
Weighted average exercise price 
(pence) 262.5p 277.5p 282.5p 282.5p 282.5p 282.5p
Weighted average share price 
(pence) 262.5p 277.5p 282.5p 282.5p 282.5p 282.5p
The Group uses historical data to estimate option exercise and employee retention within the valuation model. Expected volatilities are 
based upon an estimate by the Directors taking account of the implied volatility as determined from the Company’s historical share price 
movements. The risk-free rate for the year within the contractual life of the option is based on the UK gilt yield curve at the time of the 
grant. Any share options which are not exercised within ten years from the date of grant will expire.
The Group recognised a charge of £233,361 (2015 : £130 ,730) in the Consolidated Statement of Comprehensive Income in respect of 
equity settled share-based payment transactions in the year.
20 Related party transactions
Remuneration of key personnel
The remuneration of the Directors, who are the key management personnel of the Group and the Company, is shown below:
2016
£
2015
£
Executive Directors – aggregate
Short-term employment benefits* 372,680 330,184
Non-executive Directors – aggregate
Short-term employment benefits* 117,565 126,084
Total 490,245 456,268
* In addition, certain Directors hold share options in the Company for which a fair value share-based charge of £58,301 has been recognised in the Consolidated 
Statement of Comprehensive Income (2015 : £34,285).
One of the Directors, Mr Robin Young, became an Executive Director with effect from 1 October 2015 , having been a Non-executive 
Director in the prior year.
Amounts outstanding to key personnel
As at 30 September 2016 , no amounts were due to Directors in relation to reimbursement of fees and expenses arising in the ordinary 
course of business (30 September 2015 : £7,500). 52
Actual Experience plc ANNUAL REPORT 2016
20 Related party transactions continued
Transactions with shareholders and other related parties
During the year the Group entered into transactions, in the ordinary course of business, with shareholders and other related parties. 
Transactions entered into, along with trading balances outstanding, are as follows:
Related party:
Amounts 
invoiced
 to related
party
2016
£
Amounts
invoiced 
by related
party
2016
£
Amounts
invoiced
to related
party
2015
£
Amounts
invoiced 
by related
party
2015
£
Queen Mary University of London (note 1)
Sales – Analytical services 9,000 – 15,400 –
9,000 – 15,400 –
IP Group plc (note 1)
Purchases – Non-executive Director fees – 25,000 – 25,000
Purchases – Other office costs – – – 93
Purchases – Recruitment fees – 10,000 – –
– 35,000 – 25,093
Inmarsat plc (note 2)
Sales – Analytical services 10,000 – 9,500 –
CTGFT Limited (note 3)
Purchases – Consultancy fees – – – 7,500
Note 1 : Queen Mary University of London and IP Group plc are shareholders of the Company.
Note 2: Two of the Company’s Directors, Sir Bryan Carsberg and Mr Stephen Davidson, have common directorships of Inmarsat plc.
Note 3: One of the Company’s Directors, Mr Robin Young, is a Director and sole shareholder of CTGFT Limited.
There were no amounts outstanding due from or to the related parties at 30 September 2016 .
During the year ended 30 September 2016 , the Company entered into numerous transactions with its subsidiary company, which net off 
on consolidation – these have not been shown above.
Ultimate controlling party
The Company has no single ultimate controlling party.
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS continued
for the year ended 30 September 2016 Financial statements Notice of AGM Glossary of terms Sources Governance Strategic report
53
Actual Experience plc ANNUAL REPORT 2016
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF 
ACTUAL EXPERIENCE PLC
Report on the company financial statements
Our opinion
In our opinion, Actual Experience plc’s company financial statements 
(the “financial statements”):
 ■ give a true and fair view of the state of the company’s affairs  
as at 30 September 2016 and of its cash flows for the year  
then ended;
 ■ have been properly prepared in accordance with International 
Financial Reporting Standards (“IFRSs”) as adopted by the 
European Union and as applied in accordance with the 
provisions of the Companies Act 2006; and
 ■ have been prepared in accordance with the requirements of  
the Companies Act 2006.
What we have audited
The financial statements, included within the Annual Report, 
comprise:
 ■ the company statement of financial position as at  
30 September 2016 ;
 ■ the company cash flow statement for the year then ended;
 ■ the company statement of changes in equity for the year  
then ended; and
 ■ the notes to the financial statements, which include a  
summary of significant accounting policies and other 
explanatory information.
The financial reporting framework that has been applied in the 
preparation of the financial statements is IFRSs as adopted by the 
European Union, and applicable law, and as applied in accordance 
with the provisions of the Companies Act 2006.
In applying the financial reporting framework, the directors have 
made a number of subjective judgements, for example in respect  
of significant accounting estimates. In making such estimates,  
they have made assumptions and considered future events.
Opinion on other matter prescribed by the Companies 
Act 2006
In our opinion, the information given in the Strategic Report and 
the Directors’ Report for the financial year for which the financial 
statements are prepared is consistent with the financial statements.
Other matters on which we are required to report 
by exception
Adequacy of accounting records and information and 
explanations received
Under the Companies Act 2006 we are required to report to you if, 
in our opinion:
 ■ we have not received all the information and explanations we 
require for our audit; or
 ■ adequate accounting records have not been kept by the 
company, or returns adequate for our audit have not been 
received from branches not visited by us; or
 ■ the financial statements are not in agreement with the 
accounting records and returns.
We have no exceptions to report arising from this responsibility.
Directors’ remuneration
Under the Companies Act 2006 we are required to report to you if, 
in our opinion, certain disclosures of directors’ remuneration 
specified by law are not made. We have no exceptions to report 
arising from this responsibility.
Responsibilities for the financial statements and the audit
Our responsibilities and those of the directors
As explained more fully in the Directors’ Responsibilities, the 
directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the 
financial statements in accordance with applicable law and 
International Standards on Auditing (UK and Ireland) (“ISAs (UK & 
Ireland)”). Those standards require us to comply with the Auditing 
Practices Board’s Ethical Standards for Auditors.
This report, including the opinions, has been prepared for and 
only for the company’s members as a body in accordance with 
Chapter 3 of Part 16 of the Companies Act 2006 and for no other 
purpose. We do not, in giving these opinions, accept or assume 
responsibility for any other purpose or to any other person to 
whom this report is shown or into whose hands it may come 
save where expressly agreed by our prior consent in writing.
What an audit of financial statements involves
We conducted our audit in accordance with ISAs (UK & Ireland). 
An audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material 
misstatement, whether caused by fraud or error. This includes an 
assessment of: 
 ■ whether the accounting policies are appropriate to the 
company’s circumstances and have been consistently  
applied and adequately disclosed; 
 ■ the reasonableness of significant accounting estimates  
made by the directors; and 
 ■ the overall presentation of the financial statements. 
We primarily focus our work in these areas by assessing the 
directors’ judgements against available evidence, forming  
our own judgements, and evaluating the disclosures in the  
financial statements.
We test and examine information, using sampling and other 
auditing techniques, to the extent we consider necessary to 
provide a reasonable basis for us to draw conclusions. We obtain 
audit evidence through testing the effectiveness of controls, 
substantive procedures or a combination of both. 
In addition, we read all the financial and non-financial information 
in the Annual Report to identify material inconsistencies with the 
audited financial statements and to identify any information that is 
apparently materially incorrect based on, or materially inconsistent 
with, the knowledge acquired by us in the course of performing the 
audit. If we become aware of any apparent material misstatements 
or inconsistencies we consider the implications for our report.
Other matter
We have reported separately on the group financial statements of 
Actual Experience plc for the year ended 30 September 2016 .
Colin Bates (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Bristol
18 January 2017 54
Actual Experience plc ANNUAL REPORT 2016
COMPANY STATEMENT OF CHANGES IN EQUITY
for the year ended 30 September 2016
 
Share 
capital
£
Share 
premium
£
(Accumulated 
losses)/
retained 
earnings 
£
Total equity
£
At 1 October 2014 57,688 134,346 2,972,768 3,164,802
Loss and total comprehensive expense for the year – – (2,243,019) (2,243,019)
Issue of shares 16,339 15,231,024 – 15,247,363
Cost of share issues – (591,216) – (591,216)
Share-based payment expense – – 108,721 108,721
Share-based payment expense in respect of services provided  
to subsidiary undertaking – – 22,009 22,009
At 30 September 2015 74,027 14,774,154 860,479 15,708,660
At 1 October 2015 74,027 14,774,154 860,479 15,708,660
Loss and total comprehensive expense for the year – – (5,836,122) (5,836,122)
Issue of shares 869 61,016 – 61,885
Share-based payment expense – – 163,804 163,804
Share-based payment expense in respect of services provided  
to subsidiary undertaking – – 69,557 69,557
At 30 September 2016 74,896 14,835,170 (4,742,282) 10,167,784 Financial statements Notice of AGM Glossary of terms Sources Governance Strategic report
55
Actual Experience plc ANNUAL REPORT 2016
COMPANY STATEMENT OF FINANCIAL POSITION
as at 30 September 2016
  Note
2016
£
2015
£
ASSETS
Non-current assets
Property, plant and equipment C3 278,081 44,291
Intangible assets 11 516,041 366,386
Investments C4 92,067 22,509
TOTAL NON-CURRENT ASSETS 886,189 433,186
Current assets
Trade and other receivables C5 339,571 276,598
Income tax receivable C9 340,259 192,000
Cash and cash equivalents C6 9,333,067 15,227,471
TOTAL CURRENT ASSETS 10,012,897 15,696,069
TOTAL ASSETS 10,899,086 16,129,255
LIABILITIES
Non-current liabilities
Deferred tax C9 (20,960) (8,858)
TOTAL NON-CURRENT LIABILITIES (20,960) (8,858)
Current liabilities
Trade and other payables C7 (710,342) (411,737)
TOTAL CURRENT LIABILITIES (710,342) (411,737)
TOTAL LIABILITIES (731,302) (420,595)
NET ASSETS 10,167,784 15,708,660
EQUITY
Share capital 16 74,896 74,027
Share premium 16 14,835,170 14,774,154
(Accumulated losses)/retained earnings C8 (4,742,282) 860,479
TOTAL EQUITY 10,167,784 15,708,660
Approved by the Board of Directors and authorised for issue on 18 January 2017 . 56
Actual Experience plc ANNUAL REPORT 2016
COMPANY CASH FLOW STATEMENT
for the year ended 30 September 2016
 
2016
£
2015
£
Cash flows from operating activities
Loss before tax (6,164,284) (2,429,533)
Adjustment for non-cash items:
Depreciation of property, plant and equipment 48,254 13,737
Amortisation of intangible assets 345,129 141,313
Share-based payment charge 163,804 108,721
Finance income (61,944) (12,977)
Operating cash outflow before changes in working capital (5,669,041) (2,178,739)
Movement in trade and other receivables (62,976) (140,821)
Movement in trade and other payables 298,607 138,119
Cash flows used in operations (5,433,410) (2,181,441)
Tax received 192,005 159,944
Net cash flows used in operating activities (5,241,405) (2,021,497)
Cash flows from investing activities
Development of intangible assets (494,784) (321,345)
Purchases of property, plant and equipment (282,044) (41,616)
Finance income 61,944 12,977
Net cash outflow from investing activities (714,884) (349,984)
Cash flows from financing activities
Proceeds from issue of share capital, net of costs 61,885 14,656,147
Net cash inflow from financing activities 61,885 14,656,147
(Decrease)/increase in cash and cash equivalents (5,894,404) 12,284,666
Cash and cash equivalents at start of year 15,227,471 2,942,805
Cash and cash equivalents at end of year 9,333,067 15,227,471 Financial statements Notice of AGM Glossary of terms Sources Governance Strategic report
57
Actual Experience plc ANNUAL REPORT 2016
NOTES TO THE COMPANY  
FINANCIAL STATEMENTS
for the year ended 30 September 2016
C1. Principal accounting policies
The financial statements of the Company are presented as required by the Companies Act 2006 and in accordance with IFRS.
The principal accounting policies adopted are the same as for those set out in the Group’s financial statements.
C2. Company results
The Company has elected to take the exemption under section 408 of the Companies Act 2006 not to present the parent company’s 
statement of profit or loss and other comprehensive income. The parent company’s result for the year ended 30 September 2016 was a 
loss of £5,836,122 (2015 : loss of £2,243,019 ).
The audit fee for the Company is set out in note 5 of the Group’s financial statements.
C3. Property, plant and equipment
Leasehold
improvements
£
Fixtures,
fittings
and
equipment
£
Computer
equipment
£
Total
£
Cost
At 1 October 2014 – 1,838 36,779 38,617
Additions – 7,171 34,445 41,616
At 30 September 2015 – 9,009 71,224 80,233
Additions 168,488 48,407 65,149 282,044
At 30 September 2016 168,488 57,416 136,373 362,277
Accumulated depreciation
At 1 October 2014 – 195 22,010 22,205
Charge for the year – 1,635 12,102 13,737
At 30 September 2015 – 1,830 34,112 35,942
 Charge for the year 13,701 5,721 28,832 48,254
At 30 September 2016 13,701 7,551 62,944 84,196
Net book value
At 30 September 2016 154,787 49,865 73,429 278,081
At 30 September 2015 – 7,179 37,112 44,291
At 30 September 2014 – 1,643 14,769 16,412 58
Actual Experience plc ANNUAL REPORT 2016
NOTES TO THE COMPANY  
FINANCIAL STATEMENTS continued
for the year ended 30 September 2016
C4. Investments
At 30 September 2016 , the Company held the following investments in subsidiary companies:
Undertaking Sector
Share of 
issued 
capital and 
voting rights
2016
Actual Experience Inc Sales and marketing services 100%
Cost £
At 1 October 2014 500
Additions 22,009
At 30 September 2015 22,509
Additions 69,558
At 30 September 2016 92,067
Impairment
At 1 October 2014, 30 September 2015 and 30 September 2016 –
Carrying value at 30 September 2016 92,067
Carrying value at 30 September 2015 22,509
Carrying value at 30 September 2014 500
C5. Trade and other receivables
2016
£
2015
£
Trade receivables 59,613 191,349
Other receivables 111,376 20,561
Amounts due from subsidiary undertakings – 661
Prepayments and accrued income 168,582 64,027
339,571 276,598
Contractual payment terms with the Company’s customers are typically 30 to 60 days.
There are no receivables for which allowance has been made. There are no provisions for impairment losses in respect of trade and other 
receivables. There are no receivables at any of the year ends which were considered to be past due. The Directors believe that the 
carrying value of trade and other receivables represents their fair value. In determining the recoverability of trade receivables the Board 
considers any change in the credit quality of the receivable from the date credit was granted up to the reporting date. For details on credit 
risk management policies, refer to note 3.
C6. Cash and cash equivalents
Bank credit rating:
2016
£
2015
£
A+ 5,035,122 5,001,822
BBB+ 4,297,945 10,225,649
Cash and cash equivalents 9,333,067 15,227,471
The above has been analysed by the Fitch rating system and gives an analysis of the credit rating of the financial institutions where cash 
balances are held. Financial statements Notice of AGM Glossary of terms Sources Governance Strategic report
59
Actual Experience plc ANNUAL REPORT 2016
All of the Company’s cash and cash equivalents at 30 September 2016 are held in instant access current accounts or short-term deposit 
accounts. Balances are denominated in UK sterling (£) and US dollars ($) as follows:
2016
£
2015
£
Denominated in UK sterling 9,188,484 15,157,211
Denominated in US dollars 144,583 70,260
Cash and cash equivalents 9,333,067 15,227,471
The Directors consider that the carrying value of cash and cash equivalents approximates to their fair value. For details of credit risk 
management policies, refer to note 3.
C7. Trade and other payables
2016
£
2015
£
Trade payables 138,059 43,767
Other tax and social security 115,920 57,984
Other creditors 9,962 6,687
Amounts due to subsidiary undertakings 138,021 –
Accruals 218,255 210,289
Deferred income 90,125 93,010
710,342 411,737
Trade payables are all expected to be settled from the Company’s sterling bank account.
Trade and other payables principally comprise amounts outstanding for trade purchases and ongoing costs. They are non-interest 
bearing and are normally settled on 30-45 day terms. 
The Directors consider that the carrying value of trade and other payables approximate their fair value. 
The Company has financial risk management policies in place to ensure that all payables are paid within the credit time frame and no 
interest has been charged by any suppliers as a result of late payment of invoices during the year. 
C8. Movement in (accumulated losses)/retained earnings reserve
(Accumulated 
losses)/
retained 
earnings 
£
At 30 September 2014 2,972,768
Loss for the year (2,243,019)
Shared-based payment charge 108,721
Share-based payment charge in respect of services provided to subsidiary undertaking 22,009
At 30 September 2015 860,479
Loss for the year (5,836,122)
Share-based payment charge 163,804
Share-based payment charge in respect of services provided to subsidiary undertaking 69,557
At 30 September 2016 (4,742,282) 60
Actual Experience plc ANNUAL REPORT 2016
C9. Taxation
Deferred tax
Deferred tax relates to the following:
2016
£
2015
£
Accelerated depreciation for tax purposes 20,960 8,858
Deferred tax liability 20,960 8,858
Reconciliation of deferred tax liabilities
2016
£
2015
£
Balance at the beginning of the year 8,858 3,373
Charge to the Consolidated Statement of Comprehensive Income 12,102 5,485
Balance at the end of the year 20,960 8,858
At 30 September 2016 , the Company had unrecognised deferred tax assets totalling £1 ,710 ,288 (2015 : £732,776 ), which relate to losses. 
The Company has not recognised this asset in the Statement of Financial Position due to the uncertainty in the timing when it is probable 
that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised.
During the year the Company has incurred qualifying expenditure on research and development projects which has given rise to tax 
credits due from HM Revenue and Customs to the Company of £340,259 (2015 : £192 ,000).
C10. Related party transactions
Details of external related party transactions are set out in note 20. The Company has entered into transactions with its wholly-owned 
subsidiary undertaking, Actual Experience Inc. during the year. The Company incurred costs of £1 ,380,390 charged by Actual Experience 
Inc. during the year (2015 : £273,888). At 30 September 2016 , an amount of £138 ,021 was due to the subsidiary company (30 September 
2015 : £661 due from the subsidiary company).
NOTES TO THE COMPANY  
FINANCIAL STATEMENTS continued
for the year ended 30 September 2016 Glossary of terms Governance Strategic report
61
Actual Experience plc ANNUAL REPORT 2016
Financial statements Notice of AGM Sources
NOTICE OF ANNUAL GENERAL MEETING
Notice is given that the Annual General Meeting of Actual 
Experience plc (the Company) will be held at the offices of 
Henderson Global Investors, 201 Bishopsgate, London EC2M 3AE 
at 11 :30am on Friday 3 March 2017 for the following purposes:
TO CONSIDER AND, IF THOUGHT FIT, TO PASS THE 
FOLLOWING RESOLUTIONS AS ORDINARY RESOLUTIONS:
1. To receive the Company’s Annual Accounts, Strategic Report 
and Directors’ and auditors’ reports for the year ended 30 
September 2016 .
2. To reappoint David John (Dave) Page, who, in accordance with 
the Articles of Association, resigns by rotation and is eligible 
for reappointment.
3. To reappoint Sir Bryan Carsberg, who, in accordance with the 
Articles of Association, resigns by rotation and is eligible 
for reappointment.
4. To reappoint PricewaterhouseCoopers LLP as auditors of the 
Company.
5. To authorise the Directors to determine the remuneration of the 
Auditors.
6. That, pursuant to section 551 of the Companies Act 2006 (Act), 
the Directors be and are generally and unconditionally 
authorised to exercise all powers of the Company to allot 
Relevant Securities up to an aggregate nominal amount of 
£24,965 provided that (unless previously revoked, varied or 
renewed) these authorities shall expire at the conclusion of the 
next Annual General Meeting of the Company after the passing 
of this resolution or on the date falling 18 months after the 
passing of this resolution (whichever is the earlier), save that, 
in each case, the Company may make an offer or agreement 
before the authority expires which would or might require 
Relevant Securities to be allotted after the authority expires 
and the Directors may allot Relevant Securities pursuant to any 
such offer or agreement as if the authority had not expired. 
 
In this resolution, ‘Relevant Securities’ means shares in the 
Company or rights to subscribe for or to convert any security 
into shares in the Company; a reference to the allotment of 
Relevant Securities includes the grant of such a right; and a 
reference to the nominal amount of a Relevant Security which is 
a right to subscribe for or to convert any security into shares in 
the Company is to the nominal amount of the shares which may 
be allotted pursuant to that right. 
 
These authorities are in substitution for all existing authorities 
under section 551 of the Act (which, to the extent unused at the 
date of this resolution, are revoked with immediate effect from 
the passing of this resolution).
TO CONSIDER AND, IF THOUGHT FIT, TO PASS THE 
FOLLOWING RESOLUTION AS A SPECIAL RESOLUTION:
7. That, subject to the passing of resolution 6 and pursuant to 
section 570 of the Act, the Directors be and are generally 
empowered to allot equity securities (within the meaning of 
section 560 of the Act) for cash pursuant to the authorities 
granted by resolution 6 as if section 561 (1 ) of the Act did not 
apply to any such allotment, provided that this power shall be 
limited to:
7.1 the allotment of equity securities in connection with an 
offer of equity securities (whether by way of a rights issue, 
open offer or otherwise):
7.1.1 to holders of ordinary shares in the capital of the 
Company in proportion (as nearly as practicable) to 
the respective numbers of ordinary shares held by 
them; and
7.1.2 to holders of other equity securities in the capital of 
the Company, as required by the rights of those 
securities or, subject to such rights, as the Directors 
otherwise consider necessary,
 but subject to such exclusions or other arrangements 
as the Directors may deem necessary or expedient in 
relation to treasury shares, fractional entitlements, 
record dates or any legal or practical problems under 
the laws of any territory or the requirements of any 
regulatory body or stock exchange; and
7.2 the allotment of equity securities otherwise than pursuant 
to paragraph 7.1 of this resolution) up to an aggregate 
nominal amount of £7,490,
 and (unless previously revoked, varied or renewed) this power 
shall expire at the conclusion of the next Annual General 
Meeting of the Company after the passing of this resolution 
or on the date falling 18 months after the passing of this 
resolution (whichever is the earlier), save that the Company may 
make an offer or agreement before this power expires which 
would or might require equity securities to be allotted for cash 
after this power expires and the Directors may allot equity 
securities for cash pursuant to any such offer or agreement as if 
this power had not expired. 
 This power is in substitution for all existing powers under 
section 570 of the Act (which, to the extent unused at the date 
of this resolution, are revoked with immediate effect from the 
passing of this resolution).
By order of the Board
Roy Stephen (Steve) Bennetts
Company Secretary
18 January 2017
Registered office
Quay House
The Ambury
Bath
BA1 1UA
United Kingdom
Registered in England and Wales No. 06838738 62
Actual Experience plc ANNUAL REPORT 2016
NOTES RELATING TO ANNUAL GENERAL MEETING 
 In order for a proxy appointment or instruction made using the 
CREST service to be valid, the appropriate CREST message 
(a ‘CREST Proxy Instruction’) must be properly authenticated 
in accordance with Euroclear UK & Ireland Limited’s 
specifications and must contain the information required for 
such instructions, as described in the CREST Manual. The 
message, regardless of whether it constitutes the appointment 
of a proxy or is an amendment to the instruction given to 
a previously appointed proxy, must, in order to be valid, be 
transmitted so as to be received by Capita Asset Services 
(ID RA10 ) no later than 11. 30am on 1 March 2017 (or, if the 
meeting is adjourned, no later than 48 hours before the time of 
any adjourned meeting). For this purpose, the time of receipt 
will be taken to be the time (as determined by the timestamp 
applied to the message by the CREST Applications Host) from 
which Capita Asset Services is able to retrieve the message by 
enquiry to CREST in the manner prescribed by CREST. After 
this time, any change of instructions to proxies appointed 
through CREST should be communicated to the appointee 
through other means. 
 
CREST members and, where applicable, their CREST sponsors 
or voting service providers should note that Euroclear UK & 
Ireland Limited does not make available special procedures in 
CREST for any particular messages. Normal system timings and 
limitations will therefore apply in relation to the input of CREST 
Proxy Instructions. It is the responsibility of the CREST member 
concerned to take (or, if the CREST member is a CREST 
personal member or sponsored member or has appointed a 
voting service provider(s), to procure that his or her CREST 
sponsor or voting service provider(s) take(s)) such action as 
shall be necessary to ensure that a message is transmitted by 
means of the CREST system by any particular time. In this 
connection, CREST members and, where applicable, their 
CREST sponsors or voting service providers are referred, in 
particular, to those sections of the CREST Manual concerning 
practical limitations of the CREST system and timings. 
 
The Company may treat a CREST Proxy Instruction as invalid in 
the circumstances set out in Regulation 35(5)(a) of the 
Uncertificated Securities Regulations 2001 .
CORPORATE REPRESENTATIVES
5. A shareholder which is a corporation may authorise one or more 
persons to act as its representative(s) at the meeting. Each such 
representative may exercise (on behalf of the corporation) the 
same powers as the corporation could exercise if it were an 
individual shareholder, provided that (where there is more than 
one representative and the vote is otherwise than on a show of 
hands) they do not do so in relation to the same shares.
DOCUMENTS AVAILABLE FOR INSPECTION
6. The following documents will be available for inspection during 
normal business hours at the registered office of the Company 
from the date of this Notice until the time of the meeting. They 
will also be available for inspection at the place of the meeting 
from at least 15  minutes before the meeting until it ends.
a. Copies of the service contracts of the Executive Directors.
b. Copies of the letters of appointment of the Non-executive 
Directors.
BIOGRAPHICAL DETAILS OF DIRECTORS
7. Biographical details of all those Directors who are offering 
themselves for reappointment at the meeting are set out on 
pages 22 and 23 of the enclosed Annual Report and Accounts.
ENTITLEMENT TO ATTEND AND VOTE
1 . The right to vote at the meeting is determined by reference to 
the register of members. Only those shareholders registered 
in the register of members of the Company as at close of 
business on 1 March 2017 (or, if the meeting is adjourned, close 
of business on the date which is two working days before the 
date of the adjourned meeting) shall be entitled to attend and 
vote at the meeting in respect of the number of shares 
registered in their name at that time. Changes to entries in the 
register of members after that time shall be disregarded in 
determining the rights of any person to attend or vote (and the 
number of votes they may cast) at the meeting.
PROXIES
2. A shareholder is entitled to appoint another person as his or her 
proxy to exercise all or any of his or her rights to attend and to 
speak and vote at the meeting. A proxy need not be a 
shareholder of the Company. 
 
A shareholder may appoint more than one proxy in relation to 
the meeting, provided that each proxy is appointed to exercise 
the rights attached to a different share or shares held by that 
shareholder. Failure to specify the number of shares each proxy 
appointment relates to or specifying a number which when 
taken together with the numbers of shares set out in the other 
proxy appointments is in excess of the number of shares held 
by the shareholder may result in the proxy appointment being 
invalid. 
 
A proxy may only be appointed in accordance with the 
procedures set out in notes and the notes to the proxy form. 
 
The appointment of a proxy will not preclude a shareholder 
from attending and voting in person at the meeting.
3. A form of proxy is enclosed. When appointing more than one 
proxy, complete a separate proxy form in relation to each 
appointment. Additional proxy forms may be obtained by 
contacting the Company’s Registrar by phone on 0871 664 
0300 (calls cost 12p per minute plus your phone company’s 
access charge. Calls outside the United Kingdom will be 
charged at the applicable international rate. Lines are open 
between 09.00am and 17. 30pm, Monday to Friday including 
public holidays in England and Wales) or the proxy form may be 
photocopied. State clearly on each proxy form the number of 
shares in relation to which the proxy is appointed. 
 
To be valid, a proxy form must be received by post or (during 
normal business hours only) by hand at the offices of the 
Company’s Registrar, Capita Asset Services, The Registry, 
34 Beckenham Road, Beckenham, Kent, BR3 4TU, no later than 
11. 30am on 1 March 2017 (or, if the meeting is adjourned, no 
later than 48 hours before the time of any adjourned meeting).
4. CREST members who wish to appoint a proxy or proxies for 
the meeting (or any adjournment of it) through the CREST 
electronic proxy appointment service may do so by using the 
procedures described in the CREST Manual. CREST personal 
members or other CREST sponsored members, and those 
CREST members who have appointed a voting service 
provider(s), should refer to their CREST sponsor or voting 
service provider(s), who will be able to take the appropriate 
action on their behalf. 
  Notice of AGM Sources Governance Strategic report
63
Actual Experience plc ANNUAL REPORT 2016
Glossary of terms Financial statements
GLOSSARY OF TERMS
Actual Experience plc is our legal entity. Our brand name is 
Actual Experience, without the plc. Once we have introduced 
our brand name, we often shorten it to Actual.
Actual Home – analytic product which diagnoses issues with 
broadband and wifi in the home.
Actual Work – the analytics tool which analyses the digital supply 
chains of leading brands around the world, providing the insight 
required to bring consistency to the quality of the digital experience 
for their customers and staff.
Analytics as a Service (AaaS) – often shortened to AaaS, 
Analytics as a Service is the analysis of data (in our case, 
performance data) in an application hosted on the web. These 
web-based solutions offer businesses an alternative to developing 
internal hardware setups just to perform business analytics. 
Analytics Cloud – the Actual Experience Analytics Cloud receives 
data from Digital Users, applies our algorithms to the data and 
produces an objective score of digital experience quality and 
supply chain diagnostics. Our patented technology is based on 
decades of academic research.
Digital Experience Quality – the standard of consistency of 
digital experience as measured from the user’s perspective. 
Digital Supply Chain – the combination of businesses and the 
technologies they provide, including networks, IT infrastructure and 
applications, that deliver a digital product or service.
Digital User is the measurement software component of Actual 
Work and Actual Home. 
Voice of the Customer – the objective score produced in  
Actual’s Analytics Cloud, which is an accurate proxy for what  
your customer would tell you about their experience of your digital 
product or service. 
MSP – Managed Service Provider. 
 
SP – Service Provider. 64
Actual Experience plc ANNUAL REPORT 2016
Pages 4-9
1. UNCTAD, 2016 , New initiative to help developing countries grasp $22 trillion ecommerce opportunity (Online).  
Available: http://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=1281 (Accessed 9 January 2017 ) 
2. Gartner CEO Survey: Committing to Digital, 2015
3. InformationWeek, May 2016 
4. IDC, Worldwide Semi-annual Big Data & Analytics Spending Guide, 2016 
5. RnR Market Research, 2016 
6. Global CEO Outlook, KPMG, 2016 
7. 6th Annual Digital IQ Survey, PwC, 2014 
8. Raising your digital quotient, McKinsey, 2015
9. Digital Quality Report, Actual Experience, 2016 
SOURCES  Actual Experience plc 
Quay House
The Ambury 
Bath 
BA1 1UA
www.actual-experience.com