Raymarine plc, 
Quay Point, Northarbour Road, 
Portsmouth, Hampshire PO6 3TD, 
United Kingdom. 
Tel: +44 (0)23 9269 3611 
Fax: +44 (0)23 9269 4642
ALGERIA 
ANTIGUA 
ARGENTINA 
AUSTRIA  
AUSTRALIA
BAHAMAS
BAHRAIN 
BELGIUM/LUXEMBOURG
BERMUDA
BRAZIL  
BRITISH VIRGIN ISLANDS
BULGARIA
CANADA  
CANARY ISLANDS
CHILE
CHINA
CROATIA  
CYPRUS
DENMARK
ECUADOR  
EGYPT
ESTONIA
2005 Annual Report and Accounts
FINLAND
FRANCE
GERMANY 
GHANA
GIBRALTAR
GRAND CAYMAN ISLANDS  
GREECE
HONG KONG
ICELAND
INDIA 
INDONESIA
IRAN
ISRAEL 
ITALY
JAMAICA  
JAPAN
KOREA
KUWAIT
LATVIA
LEBANON  
MALAYSIA
MALTA
MEXICO
MOROCCO  
NETHERLANDS 
NETHERLAND ANTILLES  
NEW CALEDONIA
NEW ZEALAND
NORWAY 
OMAN
PANAMA
PAPUA NEW GUINEA 
PHILIPPINES
POLAND
PORTUGAL
PUERTO RICO
QATAR
RUSSIA
SAUDI ARABIA
SINGAPORE
SLOVENIA
SOUTH AFRICA 
SPAIN
SRI LANKA
ST. BARTHELEMY  
ST. LUCIA
ST . THOMAS USVI
SWEDEN  
SWITZERLAND 
TAIWAN
TAHITI
THAILAND  
TRINIDAD & TOBAGO
TUNISIA
TURKEY  
TURKS AND CAICOS ISLANDS 
UNITED ARAB EMIRATES 
UNITED KINGDOM & IRELAND 
UNITED STATES OF AMERICA
URUGUAY  
VENEZUELA
VIETNAM
ZIMBABWE
 
 
 
Raymarine plc 2005 Annual Report and Accounts Contents
Financial highlights 1
Chairman’s statement 2
Chief executive ofﬁ cer’s review 5
Financial review 8 
Board of directors 14
Corporate governance statement 16
Directors’ remuneration report 20
Company history 24 
Directors’ report 26
Statement of directors’ responsibilities 28
Independent auditors’ report to the members of Raymarine plc 29
Consolidated income statement 30
Consolidated statement of recognised income and expense 31
Consolidated balance sheet 32
Consolidated cash ﬂ ow statement 33
Notes to the ﬁ nancial statements 34
Independent auditors’ report to the members of Raymarine plc 65
Company income statement 66
Company balance sheet 66
Company cash ﬂ ow statement 67
Notes to the company ﬁ nancial statements 67
Five year summary 75
Shareholder information and professional advisers 76
Dual function displays Satellite TV Single-Station Displays
VHF Radios Autopilots Wireless Remotes Instruments Network Displays
Radar Antennas
GPS
Product Range
Thousands of boaters head to the water every day, conﬁ dent in the performance and accuracy of their Raymarine equipment. The extensive Raymarine 
product line covers stand-alone entry level products through to high-end, state-of-the-art systems.
06_AR_Cover_5mm_Spine_4.0.indd   2 06_AR_Cover_5mm_Spine_4.0.indd   2 13/3/06   15:55:39 13/3/06   15:55:39 Financial Highlights
Actual 
2005
Adjusted
1
 
2005
Actual
2004
Adjusted
1
2004
Turnover (£m) 121.9 121.9 106.3 106.3
Gross Proﬁ t (£m) 45.8 45.8 40.0 40.0
Gross Margin 37.6% 37.6% 37.6% 37.6%
EBITA (£)
2
11.8 22.4 12.2 20.2
EBITA Margin 9.7% 18.4% 11.5% 19.0%
EBITDA (£m)
3
15.0 25.6 14.8 22.8
Proﬁ t before tax (£m)
4
8.1 18.7 5.3 13.3
Earnings per share
Basic (p) 10.1p 17.1p 3.3p 14.2p
Diluted (p) 10.0p 16.9p 3.0p 12.9p
1  Adjusted measures present the results after adding back restructuring costs of £10.9m (2004: £nil) and ﬂ otation and other non-recurring costs of £0.3m credit (2004: £8.0m charge)
2  EBITA (earnings before interest, tax and amortisation) comprises operating proﬁ t before amortisation of other intangible ﬁ xed assets of £0.7m (2004: £0.8m)
3  EBITDA (earnings before interest, tax, depreciation and amortisation) comprises operating proﬁ t before amortisation of other intangible ﬁ xed assets of £0.7m (2004: £0.8m) and depreciation of property, plant and 
equipment of £3.2m (2004: £2.6m)
4  Adjusted proﬁ t before tax comprises proﬁ t before tax after adding back restructuring costs of £10.9m (2004: £nil) and ﬂ otation and other non-recurring costs of £0.3m credit 
(2004: £8.0m charge)
1 Raymarine Annual Report 2005  Chairman’s Statement
I was delighted to join the board of Raymarine 
in December 2004, succeeding Roger Thomas 
as Chairman in September 2005. On behalf of 
the board I would like to pay tribute to Roger’s 
contribution in guiding the company to its 
flotation in December 2004 and into 2005. The 
initiatives taken during Roger’s Chairmanship 
have created a solid platform from which we 
can continue to build.
Our first year as a listed company has been 
both rewarding and encouraging. The financial 
targets set at the time of the flotation have 
been exceeded. We are delighted with these 
results, as they have been achieved in a year 
whilst undertaking the major manufacturing 
outsourcing project.
Revenue growth has been very strong, all 
major markets have exceeded targets. The 
EBITA* rose by 11.0% (2005: £22.4m; 2004: 
£20.2m) prior to the exceptional costs of 
outsourcing. The final dividend of 5 pence 
per share, which combined with the interim 
dividend of 2 pence gives a total dividend of 7 
pence per share for the full year, is supported 
by a strong operating cash flow and is 2.4 
times covered by adjusted earnings.
In July 2005, the board determined to 
outsource the majority of the group’s 
manufacturing function to Flextronics, a 
provider of electronics manufacturing services.
The early projections of expected savings are 
confirmed by the progress to date. The detail, 
planning and execution of this project has 
been exceptional. We now believe that the 
total one-off costs will come in slightly below 
initial estimates.
Raymarine’s comprehensive and market 
leading product range continues to attract 
new customers and strengthen existing 
relationships. The various boat shows around 
the world are a major sales platform for 
Raymarine and it is always encouraging to see 
the levels of OEM fitment of the company’s 
products on the boats displayed.
The company moves into 2006 with continuing 
confidence in the quality and performance of 
our product range. The success of new products 
such as the E Series in 2005 will continue 
to lead the market in 2006 and further new, 
innovative products will become available 
during the year.
Critical in our success has been the hard 
work and dedication of our staff. We are very 
fortunate to have their commitment to building 
a world beating business. Through such a 
strong focus on all the aspects of customer 
service it is this commitment that is propelling 
Raymarine forward at such an encouraging 
rate. I would like to thank them for their 
continued contribution to the company’s 
success.
We are extremely pleased to be able to 
welcome Jim Webster, Business Group Director 
of Spectris plc, to the board as a non-executive 
director. Jim brings a wealth of international 
operating experience to the board and will 
also take up the role of chairman of the 
Remuneration Committee.
With the benefit of having strong executive 
leadership, excellent people and many 
opportunities to grow and develop the 
business, I have every confidence that we will 
meet the challenges of 2006 and achieve the 
ambitious targets set.
Peter Ward
Chairman of the Board
27 February 2006
*  Calculation of these measures is explained on page 1.
Raymarine Annual Report 2005 2 3 Raymarine Annual Report 2005  Raymarine Annual Report 2005 4 Malcolm Miller
Chief Executive Ofﬁ cer
27 February 2006
Chief Executive Offi  cer’s Review
Introduction
I am pleased to report that in our ﬁ rst full 
year as a quoted company we have delivered 
a strong performance across the group. Sales 
have increased by 14.7% (from £106.3m to 
£121.9m) and EBITA*, before outsourcing 
exceptional costs of £10.9m, has risen by 
11.0% (from £20.2m to £22.4m).
Raymarine’s success during 2005 has come 
from the introduction of a number of new 
and varied products, effective merchandising 
and marketing across a broad network of 
retailers and dealers and the company’s close 
relationships with boat builders.
Our operating cash ﬂ ow has remained robust, 
growing by £2.8m to £25.6m (as measured by 
EBITDA* and before deduction of exceptional 
costs and intangibles). Accordingly, we are 
pleased to be announcing a ﬁ nal dividend of 5 
pence per share.
The Market
Raymarine is a global leader in the leisure 
marine electronics market. Raymarine 
develops, manufactures and sells marine 
electronics for vessel navigation, monitoring, 
control and entertainment. This market 
is valued by Raymarine at approximately 
$1.1bn per annum and has been growing at 
approximately 5% per annum, with Raymarine 
growing faster within it by steadily gaining 
market share. 
The customer base is highly fragmented with 
many independent dealers, boat builders 
and retailers. Although there are some large 
groups in the US, this is not typical elsewhere. 
Raymarine has a very broad geographic 
footprint, with 90% of sales outside of the UK 
and importantly 51% of revenues are in the 
US, where half of the world’s leisure boats are 
purchased. The company chooses to distribute 
directly to channels in the US and the UK and 
uses a well established network of distributors 
in some 80+ countries. Despite the western 
economies making up the bulk of our business, 
new business opportunities are arising in 
Eastern Europe and South East Asia.
The industry’s rate of product introduction 
has traditionally been slow. Over the past 3 
years Raymarine has dramatically increased 
new product development. We believe 
that we lead in many areas of product 
technology and expect competitors to follow. 
However, the difﬁ culties in engineering and 
building products, that can withstand the 
harsh environment, the unique channels of 
distribution and the need for very high levels 
of worldwide customer support, naturally limits 
their number.
Raymarine’s business is generated from boat 
refurbishment and product replacement by 
dealers and consumers, together making up 
the bulk of revenues, and also from original 
installations by boat builders. Our core strength 
is across mid to larger sized boats, ranging 
from 35ft to over 100ft in length. Throughout 
2005 demand from the mid to larger boat 
sector has grown. Owners and prospective 
buyers of these boats tend to be older and 
more afﬂ uent and appear more resilient to 
economic cycles and so maintain a higher 
discretionary spend. A recent study supports 
the trend we have highlighted, suggesting that 
industry gains are expected to continue to be 
supported by an ongoing shift in the product 
mix towards larger, more sophisticated boats 
and an ageing ‘Baby Boomer’ population. 
Raymarine has been well placed to take 
advantage of this move towards bigger and 
higher value boats. As the average boat 
size grows the demand for more electronics 
increases, not just because they have more 
dashboard space or because some have dual 
stations on ﬂ y-bridges, but also because 
their owners appreciate more electronic 
information and control for safety and 
enjoyment at sea. Advances in technology 
through faster processing, improved graphics 
and bigger memory chips have allowed us to 
deliver beneﬁ ts to the consumer. Raymarine’s 
products provide a comprehensive range 
of marine electronics from autopilots, radar 
and instruments to chartplotters, VHF radios, 
satellite antennas and software. 
*  Calculation of these measures is explained on page 1.
5 Raymarine Annual Report 2005  Furthermore the products interconnect and 
provide integrated solutions and enhanced 
cartography, which are easy to use. 
 
Trading
Trading continued strongly throughout the 
second half of the year with integrated 
products, particularly the E series launched in 
February, gaining in momentum as the year 
progressed. A common feature of our business 
is that products launched mid season (i.e. in 
the January to March period) often perform 
relatively better from the start of the northern 
hemisphere boating season (September 
onwards) when boats are being upgraded, 
refurbished or new models are launched. This 
pattern can continue into the second year 
of the products life cycle and especially as 
industry volumes pick up.
Dealers, by far the largest and most 
fragmented sector of our business, showed 
very signiﬁ cant increases. Business conducted 
directly with boat builders (largely in the US) 
grew by a factor greater than the average 
sales growth, but trade with US retailers 
fell back a little as they struggled with poor 
weather and a reliance on the lower end of 
the recreational market. OEM business is 
expected to continue to grow in 2006, driven 
by net new customer acquisitions. Raymarine’s 
distribution network has demonstrated the 
ability to take advantage of any change in mix 
of business as it occurs throughout the world.
Sales revenue growth was strong throughout 
the world with the UK up 21.2%, Americas 
up 15.9% in Dollar value and rest of the 
world, transacted mostly in Pounds Sterling, 
increasing business by 12.9%.
Raymarine is a leading brand with strong 
values, built upon world-wide support and 
a robust product range, that operates in a 
market that places a strong premium on 
equipment operating reliably and continually 
in the harshest of conditions. On account of 
this, our gross margins held ﬁ rm, as they have 
done over much of the company’s history.
New Products
Raymarine continues to be an industry leader 
in product development and our planning 
for new products is detailed, continual and 
relentless. We believe that our development 
process, which involves all key areas of the 
company, is one of the most vital assets of our 
business.
We launched 12 new products last year.
E series, a fully integrated and networked 
system embedding revolutionary award 
winning cartography, sold exceptionally well 
with interest and prospects growing as the 
year progressed. Consumers can see the value 
of a very comprehensive system that can 
communicate with sensors and instruments 
around the vessel and that can display in 
super high bright graphics. These graphics 
supply information such as three dimensional 
mapping, radar overlays and moving pictures 
from video cameras, whilst keeping an eye 
on speed, course and depth data. We are 
expecting stronger sales in 2006, as the 
range becomes even more widely accepted 
and as we add new features such as vessel 
identiﬁ cation and satellite weather forecasts.
We successfully introduced wireless 
instrumentation repeaters and autopilots last 
year and anticipate that demand will grow 
for these types of products as consumers 
and boat builders appreciate the value and 
convenience that this technology delivers. The 
ability to receive key information anywhere on 
the boat and the knowledge that the boat’s 
course can be altered from a simple remote 
handset will set a standard for this sector. 
Satellite TV antenna systems tap into an 
emerging and strengthening demand for 
entertainment on board. Raymarine’s 45cm 
fully automatic stabilised antennas were 
launched late in 2005 and we are pleased to 
report that early indications show that they 
too are being well accepted. Other models are 
planned for 2006.
Many new products are scheduled for launch 
in 2006. They range from replacements of, or 
additions to, very successful product ranges 
such as Raymarine’s world leading ST60+ 
instruments. These offer, in standalone or 
multi formats, information including speed, 
depth, wind, heading, temperature, rudder 
angle and compass. New systems like the 
A65, a 6.5” display chartplotter with new GPS 
antenna and digital depth sounder, appeal to 
different sectors of the market and others, like 
Raymarine’s satellite weather receiver, signal 
our entry into new areas of marine electronics.
Supply Chain
In the middle of last year we embarked on 
our biggest project since our public listing, 
outsourcing all UK manufactured Raymarine 
products. It is worth repeating the reasons 
given at the time and these are to ensure that 
we can not only maintain and grow our gross 
margins, but access the latest technologies 
and skills in supply chain management. 
A great deal of planning has gone into this 
project from training, logistics, resources and 
communication to design process, testing and 
quality parameters.
We are on track, at just over a third of the 
way into this project, most of that in the 
planning cycle, although some existing and 
new production cells have been established 
and are now up and running. By the end of 
February 2006 the bulk of the automated 
printed circuit board production has moved 
to Hungary and 6 out of 35 assembly cells are 
now in place.
Against the background of strong growth and 
sales, there remain risks ahead, both in the 
transfer of a further 29 production cells and 
the complex introduction of new products. 
However, we are very pleased so far with the 
way in which the project has been tackled in 
areas of risk management, professionalism 
and diligence. 
Raymarine Annual Report 2005 6 Not only has Flextronics (our manufacturing 
partner) been enthusiastic and keen to 
exchange knowledge, but I have been 
hugely impressed with the dedication and 
commitment of our own manufacturing, 
ﬁ nance, purchasing and engineering staff.
We expect this move to better equip us for 
the future, where product life cycles will 
shorten and customers will rely on continual 
improvements to supply and service.
People
I have immense respect and praise for our 
people during a challenging year, where they 
were responsible for not only growing our 
business signiﬁ cantly, but planning the move to 
outsource all production. I would like to thank 
everyone for their enormous effort and selﬂ ess 
approach. 
We have been faced with meeting demand 
for our products which, in many areas, has 
been greater than anticipated whilst laying 
the foundations for the move through the 
transfer of purchasing, speciﬁ cation of new 
components and training of production and 
test engineers.
Alongside this, sales and marketing, product 
management, ﬁ nance and engineering teams 
have gone about the regular business of 
promoting and marketing the company’s 
extensive product lines, whilst researching and 
preparing for the future.
Current Trading and Outlook
The industry continues to evolve. We have seen 
consolidation amongst our competitors and a 
trend towards more integrated and advanced 
systems. We see opportunities in this for 
Raymarine across wider marine markets.
The year has started encouragingly and current 
trading is in line with expectations.
 
As the group looks forward it remains 
conﬁ dent that the plans and the infrastructure 
that we have put in place will keep us ahead of 
the competition. These plans also encompass 
new ideas and concepts that will provide 
expansion within an industry that shows signs 
of maintaining growth through increasing 
wealth and a trend towards higher value, more 
sophisticated products.
7 Raymarine Annual Report 2005  Year Ended 31 December
2005 2004 Increase %
Sales 121,851 106,268 14.7
EBITA* 22,390 20,178 11.0
Exceptional items (see note 5) (10,588) (8,028)
Amortisation (725) (765)
Net interest payable (3,015) (6,128)
Proﬁ t before taxation 8,062 5,257 53.3
Taxation 305 (2,765)
Proﬁ t for the ﬁ nancial year 8,367 2,492 
* Calculation of these measures is explained on page 1.
Set out below is a comparison of the results 
for the year with those of the prior year:
Financial Review
Results
Raymarine has considerable ﬁ nancial strength 
in the free cash ﬂ ow, which is a function of its 
innovative product range, brand strength, and 
global market share. In recognition of this, the 
group has declared a ﬁ nal dividend for 2005 of 
5p per share, which is signiﬁ cantly higher than 
expectations.
Raymarine has achieved a ﬁ nancial 
performance in 2005 that once again meets 
expectations and far exceeds the forecasts 
for the group that were made at the time 
of Raymarine’s ﬂ otation in December 2004. 
Turnover increased by 14.7% over the previous 
year to £121.9m, EBITA* increased by 11.0% 
to £22.4m, and basic adjusted earnings per 
share grew by 20.4% to 17.1 pence. Net debt 
reduced by £6.4m to £38.4m.
Raymarine is reporting these full year results 
for the ﬁ rst time under International Financial 
Reporting Standards (IFRS).
Proﬁ t before tax (before exceptionals and 
intangibles) was £19.4m (2004: £14.1m) an 
increase of 38%. 
This increase in proﬁ ts has been largely as 
a result of the strong growth in sales. The C 
series introduced in 2004 continues to be well 
received, while the E series launched in 2005 
has created especially strong demand, selling 
well ahead of expectations and attaining the 
anticipated margins. The ﬂ uctuations in the 
US Dollar, in which currency approximately 
one half of the group’s sales are denominated, 
had no material affect on the results due to 
the group’s policy of substantially hedging its 
foreign exchange exposure and the adoption 
of hedge accounting under IAS 32/39. 
The announcement of the outsourcing of the 
group’s manufacturing and the subsequent 
transfer of production to our outsourcing 
partner, which is scheduled to be completed 
in 2006, has been a most signiﬁ cant feature 
of the year, both strategically and ﬁ nancially. 
In July 2005, Raymarine announced that 
it expected the exceptional costs of the 
outsourcing project, that would go through 
the income statement in 2005, would be 
approximately £15m and the total cost of the 
project would amount to £21m. In the event, 
the actual charge in 2005 is £10.9, some 
£4.1m below the amount previously indicated. 
While the project is proceeding well and is on 
schedule, and the lower charge undoubtedly 
reﬂ ects the smooth progress to date, some of 
the saving arises due to timing differences in 
the provisioning for costs, which are expected 
to be incurred in due course.
We continue to believe the project will be 
completed on schedule and at a cost that is 
slightly below the initial estimates. However, 
it should not be assumed that the overall cost 
budget for the project will be bettered by the 
full amount of the savings to date.
Tony Osbaldiston
Finance Director
27 February 2006
Raymarine Annual Report 2005 8 Raymarine has enjoyed a very strong 
operating cash ﬂ ow during 2005 and reduced 
the level of net debt by £6.4m. This is due in 
part to the reduction in the rate of interest 
payable resulting from the reﬁ nancing of 
the group’s bank borrowings at ﬂ otation in 
December 2004.
Raymarine is reporting an overall tax credit 
in 2005. This has resulted from the level 
of tax allowable expenses incurred in the 
outsourcing and costs that were incurred 
around the time of the reﬁ nancing and 
ﬂ otation. As these costs have been treated as 
exceptional the associated tax credits are also 
treated as exceptional and are removed when 
Raymarine declares its adjusted proﬁ ts and 
earnings per share. This approach was also 
adopted at the interim stage.
On a UK GAAP
#
 basis Raymarine’s proﬁ t 
before interest and tax (before exceptionals 
and intangibles) rose to £21.3m from £17.1m 
reported in 2004, an increase of 24.6%. This 
increase is greater than the increase shown 
on an IFRS basis and is, management believes, 
the more accurate measure of the growth in 
proﬁ ts over 2004. This is because on an IFRS 
basis the amortisation of development costs 
in 2004 does not reﬂ ect a full build up of 
capitalised development costs in the balance 
sheet, due to the transition to IFRS. This 
anomaly does not affect 2005.
Research and Development
In order to maintain and develop its 
competitive position the group continues 
to invest heavily in the research and 
development of a stream of new products 
and product enhancements. Accounting 
for research and development under IFRS 
has been signiﬁ cantly affected, as the new 
accounting standard IAS 38 requires the 
group to capitalise, for the ﬁ rst time, certain 
development expenditure. Accordingly £3.6m 
of development expenditure in the year was 
capitalised and £7.4m (2004: £5.1m) charged 
to the proﬁ t and loss account, which included 
£2.6m (2004: £1.1m) of depreciation on 
development expenditure from prior years, 
capitalised under the new standard in the 
opening balance sheet. Cash expenditure in 
the year was £8.4m (2004: £8.1m).
Exceptional Costs
On 5 July 2005 the board announced its 
decision to outsource all of its manufacturing, 
then conducted in its Portsmouth based 
factory, to a leading electronics manufacturing 
service company (EMS) located in Hungary. 
This strategic decision will enable the group 
to maintain its market leading, competitive, 
position across its product range. The project 
will be completed over an 18 month period 
at an exceptional cost that was estimated 
would total £21m spread over the years 2005 
to 2007. At the time of the announcement 
Raymarine stated: “The board estimated the 
outsourcing is likely to lead to annual savings 
of approximately £5m in 2007, £10m in 
2008, £10.5m in 2009, and £11m from 2010 
onwards. No material savings are likely to be 
achieved in 2005 or 2006 in view of the costs 
of the transfer.”
The outsourcing project is progressing on 
schedule and within budget. The board 
remains conﬁ dent that the savings originally 
envisaged will be achieved in full and as 
timetabled.
# References to UK GAAP reﬂ ect the group’s accounting policies as at 31 December 2004, supplemented in the case of 2005, by the adoption of Financial Reporting Standards 20 to 26 to the extent that they are applicable 
to the group.
9 Raymarine Annual Report 2005  The cost of the manufacturing outsourcing 
project during 2005 amounted to £10.9m 
covering redundancies, engineering set-up 
costs, transfers of assets and engineers to the 
outsourcing location in Hungary and the write 
down of redundant assets. Full details can be 
found in note 5 (b) to the accounts.
Interest
Net interest payable of £3.0m comprised 
net interest charges of £2.4m (2004: £6.4m) 
plus £0.6m of foreign exchange translation 
movements (2004: proﬁ t £0.3m) on that 
proportion of bank debt that is denominated 
in US Dollars. It is the group’s policy to 
maintain a natural hedge of its net dollar 
denominated assets by drawing down an 
equivalent amount of borrowings in US 
Dollars. The substantial reduction in the 
interest charge from the prior year is not 
only due to the cash generated in the year, 
but also to the reﬁ nancing of the group’s 
debt in December 2004. Prior to that the 
group had paid ﬁ nance charges of up to 
12% on some of the leveraged ﬁ nance used 
to acquire the business. Interest charges on 
the current facilities are based on the total 
level of debt, on a ratchet that runs between 
50 and 115 basis points over LIBOR, for the 
currency in which the borrowings are drawn. 
Had Raymarine been subject to these terms 
throughout 2004 the net interest charge 
excluding foreign exchange in the prior year 
would also have been £2.3m. The interest 
charge was covered 9.9 times by EBITDA* 
(earnings before interest, tax, depreciation 
and amortisation) before exceptionals, 5.8 
times by EBITDA*, and 8.4 times by proﬁ t 
before interest (before exceptionals). These 
ratios demonstrate the strong liquidity of the 
group.
Taxation
The group has a tax credit of £0.3m (2004: 
charge £2.8m or effective rate of 45.9%). 
This reﬂ ects tax relief for costs associated 
with the ﬂ otation of the company and with 
the outsourcing project and should not be 
regarded as on going. Accordingly, in declaring 
adjusted proﬁ ts and earnings per share, the 
group has removed the beneﬁ t of tax relief 
on any items which have been treated as 
exceptional in the accounts. Full details can 
be found in Note 10 to the accounts. The 
underlying tax rate for the year is below 
the standard rate of UK corporation tax, 
principally due to the utilisation of tax losses 
brought forward from earlier years in the 
United States.
Dividends
Subject to approval at the Annual General 
Meeting a ﬁ nal dividend of 5 pence per share 
will be paid on 26 May 2006 to shareholders 
on the register of members at the close of 
business on 5 May 2006. In accordance with 
IFRS this ﬁ nal dividend will not be recognised 
in the accounts until it is approved by the 
members. The dividend reﬂ ects the level of 
proﬁ ts achieved by the group and the board’s 
conﬁ dence in the future outlook, including 
the good progress to date in the outsourcing 
project. Before exceptional items and 
intangibles the dividend is covered 3.4 times 
by earnings for the year after tax. Using a 
“normalised” tax charge of 27% the dividend 
is covered 2.4 times before exceptional items 
and intangibles.
Earnings per share
Basic earnings per share (EPS) increased 
by 206.1% to 10.1 pence per share (2004: 
3.3 pence). Adjusted basic EPS before 
exceptionals and intangibles is 17.1 pence 
(2004: 14.2 pence), an increase of 20.4%. 
Details of the calculation are presented in 
Note 12 to the accounts. The prior year basic 
and adjusted EPS beneﬁ ted from the receipt of 
a tax loss surrender under group relief relating 
to Raymarine’s former parent company, which 
had not been carried in the balance sheet. If 
this is allowed for, the underlying increase in 
adjusted basic EPS on the prior year is 23.9%. 
The EPS calculation is based upon an average 
number of shares for the year of 82.8m. The 
difference between basic and fully diluted 
share capital relates to the company’s Long 
Term Incentive Plan and is not signiﬁ cant to 
the EPS calculation.
Under UK GAAP
#
 the adjusted basic EPS was 
16.0 pence (2004: 11.6 pence), an increase of 
37.9% (see note 36).
Share Capital and Shareholders’ 
Funds
The group had 82.8m shares in issue at 31 
December 2005. 2.3m shares owned by 
existing and former executive directors of the 
group are “locked up” until 2 March 2006 
when they will be fully removed from this 
arrangement.
At 31 December 2005 shareholders’ funds 
totalled £18.0m (2004: £10.5m) of which 
£13.6m are distributable reserves (2004: 
£6.9m).
Raymarine shares, which were successfully 
listed on the London Stock Exchange on 6 
December 2004 at 152p, were 242p on 31 
December 2005.
*  Calculation of these measures is explained on page 1.
#  References to UK GAAP reﬂ ect the group’s accounting policies as at 31 December 2004, supplemented in the case of 2005, by the adoption of 
Financial Reporting Standards 20 to 26 to the extent that they are applicable to the group.
Raymarine Annual Report 2005 10 11 Raymarine Annual Report 2005  Raymarine Annual Report 2005 12 Capital Expenditure
Capital expenditure was £4.1m (2004: £4.3m) 
excluding any research and development 
costs capitalised under IFRS. This was mainly 
incurred on ﬁ xtures, ﬁ ttings, tools and 
equipment. The group’s principal assets are its 
intellectual property and its brands, neither of 
which is capitalised in the group’s accounts.
Cash Flow and Net Debt
The group has a strong balance sheet backed 
by a committed 5-year multi-currency debt 
facility of US$135m that was arranged just 
before the start of the year. In addition the 
company also has a £9m overdraft facility.
The group’s business generates strong 
operating proﬁ ts, which are converted 
into cash. Earnings before interest, tax, 
depreciation and amortisation (EBITDA*) were 
£25.6m (2004: £22.8m) an increase of 12.3%.
EBITDA* is 21.0% of turnover compared to 
21.5% in the prior year.
Operating cash ﬂ ow before movements in 
working capital was £26.1m (2004: £18.2m), 
an increase of 43.4%. After movements 
in working capital the cash generated by 
operations was £21.8m (2004: £17.0m), 
an increase of 28.2% despite the fact that 
towards the end of the year the group was 
accumulating signiﬁ cant buffer inventories, in 
connection with the transfer of production to 
the EMS partner, of approximately £2.5m.
Net debt reduced by £6.4m during the year 
to close at £38.4m on 31 December 2005, 
despite cash outﬂ ow on all exceptional items 
and buffer stocks amounting to £11.8m. 
Net debt consists of gross debt of £40.4m 
less cash balances of £2.0m. All the group’s 
borrowings are at variable rates of interest. At 
31 December 2005 the group had £40.1m of 
facility headroom under all its debt facilities.
Pensions
The group does not operate any deﬁ ned 
beneﬁ t pension plans nor does it have any 
liabilities under any past plans of this type. 
Employees of the group are able to participate 
in a group pension arrangement through a 
deﬁ ned contribution plan.
Financial Instruments and Risk 
Management
The group does not enter into speculative 
ﬁ nancial transactions and uses ﬁ nancial 
instruments for certain risk management 
purposes only.
The group’s operating transactions are 
entered into in several different currencies. 
Approximately half of Raymarine’s sales take 
place in the United States and are received 
in US Dollars, which the group attempts to 
hedge naturally by procuring supplies in US 
Dollars, normally leaving a surplus of US 
Dollars. These are converted into Pounds 
Sterling, Euros, and Japanese Yen regularly 
throughout the year. The EMS outsourcing 
deal, when fully operational, is expected to 
reduce considerably the group’s exposure to 
the US Dollar through natural hedging.
Raymarine’s policy is to cover any remaining 
currency exposures through forward exchange 
contracts. The group has such forward 
currency transactions in place up to the end of 
the ﬁ rst quarter of 2006. It also aims to match 
the currency of its borrowings with the main 
transaction currencies.
The group keeps under review the 
appropriateness of ﬁ xing interest rates on its 
borrowings, although at 31 December 2005 all 
debt was on ﬂ oating rates, in light of the very 
high degree of interest cover from cash ﬂ ow 
and earnings.
Foreign Exchange
The results of the business in the United 
States have been translated at an average 
rate of £1:$1.84 (2004: £1:$1.83). The year 
end rate was £1:$1.73 (2004: £1:$1.93).
International Financial Reporting 
Standards
These audited ﬁ nancial statements have 
been produced fully in accordance with 
IFRS, the ﬁ rst such full year results to be 
issued by the group. A summary of how the 
principal ﬁ nancial statements would have 
appeared under UK GAAP
#
, along with a full 
reconciliation of proﬁ ts and net assets to IFRS 
is provided in the notes to the accounts in 
note 36 “Explanation of transition to IFRS.”
The overall effect of the change to IFRS 
has been to increase reported proﬁ ts and 
net assets. This is primarily because of the 
effect of IAS 38 “Intangible Assets” which 
is the standard whose adoption has had the 
greatest effect on these ﬁ nancial statements. 
Under IAS 38 the treatment of both research 
and development expenditure and goodwill 
have changed. The group had previously 
adopted a policy of expensing all research 
and development costs as incurred. Under 
IAS 38, the element of these costs relating 
to the development of new products is now 
capitalised and expensed over the commercial 
life of the product. The expenditure on 
research continues to be expensed as 
incurred. In addition, purchased goodwill, 
which was formerly amortised over 20 years, 
is now retained in the balance sheet without 
amortisation subject to satisfying an annual 
impairment test.
*  Calculation of these measures is explained on page 1.
#  References to UK GAAP reﬂ ect the group’s accounting policies as 
at 31 December 2004, supplemented in the case of 2005, by the 
adoption of Financial Reporting Standards 20 to 26 to the extent 
that they are applicable to the group.
13 Raymarine Annual Report 2005  Malcolm has over 25 years 
experience in the consumer 
electronics industry. He was 
Chief Executive of Pace Micro 
Technology plc from 1997 to 
2002, and was formerly Chief 
Executive of SEGA Europe 
from 1994 to 1997. His earlier 
career was with Amstrad plc, 
culminating in appointment as 
Managing Director. Malcolm 
joined Raymarine as Chief 
Executive in January 2003. He is 
currently a non-executive director 
of Avis Europe plc. Malcolm has 
a BA in business studies from the 
University of Westminster.
Tony is a chartered accountant 
who has followed a career in 
ﬁ nancial management with 
publicly quoted companies. He 
has been Finance Director of both 
Max Factor UK Group (cosmetics) 
where he was employed between 
1985 and 1989 and Volvo Car 
UK Ltd where he was employed 
between 1989 and 1994. He 
then joined FirstGroup plc in 
1995, as Finance Director and in 
1999 was promoted to Deputy 
CEO and then CEO of FirstGroup 
America. He joined Raymarine 
as Finance Director in August 
2004. He is currently a non-
executive Director and Chairman 
of the Audit Committee of BSS 
Group plc. Tony has an MSc 
in management sciences from 
Durham University.
Kieran has been involved in 
product design for 20 years. 
His early career included the 
design of consumer and medical 
electronics for Thorn EMI and 
Oxford Instruments plc. He 
joined Raytheon Marine division 
as a Senior Design Engineer 
in 1994 and was promoted to 
Engineering Manager in January 
1999. Kieran was appointed 
Design and Development Director 
at the time of the management 
buy-out in January 2001. Kieran 
has a Bsc in Engineering Product 
Design from London Southbank 
University.
Terry has spent over 20 years 
in the consumer electronics 
industry. He started his career 
with The Black & Decker 
Corporation in 1984, originally 
in sales and then moving into 
General Management roles. 
In 1997 he joined Vermont 
American, a joint venture of 
Bosch and Emerson, as Sr. Vice 
President. In 2000, Terry joined 
the Polaroid Corporation as 
Vice President and General 
Manager as well as President 
of Canada. In December 2002 
Terry was appointed President 
of the America’s (Raymarine 
Inc.) and Head of Global Product 
Management for Raymarine 
worldwide. He has quickly 
assumed an industry leadership 
role being a board member of the 
National Marine Manufacturers 
Association (NMMA) and a 
board member of the new 
national Grow Boating industry 
initiative. Terry has BA and an 
MBA in business and marketing 
respectively.
The Board of Directors
Malcolm Miller
Chief Executive Ofﬁ cer
Tony Osbaldiston
Finance Director
Kieran Breheny
Design & Development Director
Terry Carlson
President of Americas & Head of 
Global Product Management
Raymarine Annual Report 2005 14 Jim has 30 years experience 
developing, manufacturing 
and marketing high technology 
products internationally. At 
Raychem Corporation he held a 
number of senior management 
positions in manufacturing 
and business development, 
serving high growth electronics 
and transportation markets 
and was General Manager of 
the European Wire and Cable 
business. Since 1993 he has 
been an Executive Director of 
Spectris plc, responsible for a 
number of the group’s precision 
instrumentation and controls 
companies. He holds a BSc. 
(Hons.) in metallurgy from the 
University of Leeds.
Peter has over 35 years 
experience working within 
companies which design, 
manufacture and market 
products, the majority of which 
have been at board level. He has 
held senior management roles 
at Peugeot SA, where he was 
subsequently Managing Director 
of Motorquip Limited. He was 
Chairman and Chief Executive 
for Rolls-Royce and Bentley 
Motor Cars and Managing 
Director Operations for Vickers 
plc. Peter was also Chairman 
and Chief Executive of Cunard 
Line. He currently holds non-
executive positions at the law 
ﬁ rm, DLA Piper Rudnick Gray 
Cary International LLP; Harley 
Davidson Inc and is Chairman of 
TG21plc.
Nicholas joined Touche Ross & 
Co. in 1983, where he qualiﬁ ed 
as a chartered accountant in 
1986. Following a further three 
years at Touche Ross & Co., he 
joined Hg Capital, where he is 
now a Partner, to pursue a career 
in private equity investment. He 
was appointed a non-executive 
Director of Raymarine in January 
2001.
Paul joined Deloitte Haskin & 
Sells in 1978, where he qualiﬁ ed 
as a chartered accountant in 
1981. Following a further ﬁ ve 
years at Deloitte Haskin & Sells 
he moved into industry with 
a variety of roles in ﬁ nance 
and business development. 
Paul is Director of Corporate 
Development at Bespak plc. 
From 1991 to 2004 he was 
Business Development Director 
of Spectris plc. Paul was also a 
non-executive director of London 
Bridge Software Holdings plc 
until its acquisition by Fair Isaac 
Corporation in April 2004.
Peter Ward
Chairman
Jim Webster
Non-Executive Director
Nicholas Turner
Non-Executive Director
Paul Boughton
Non-Executive Director
15 Raymarine Annual Report 2005  Scheduled 
Full Board
Renumeration 
Committee
Audit
Committee
Nomination 
Committee
Number of meetings in the year 10 4 3 2
Peter Ward 9 3 2 1
Roger Thomas (a) 7 1 3 1
Malcolm Miller 10 0 0 0
Kieran Breheny 8 0 0 0
Terry Carlson 10 0 0 0
Tony Osbaldiston 10 0 0 0
Paul Boughton 9 4 3 2
Nicholas Turner 9 4 0 2
Jim Webster (b) 0 0 0 0
Corporate Governance Statement
The company maintains high standards of 
corporate governance. During the 12 months 
to 31 December 2005, the company complied 
with the Combined Code on Corporate 
Governance issued in July 2003 appended 
to the Listing Rules (the “Combined Code”), 
except for as described below.
Following the appointment of Peter 
Ward as non-executive chairman on 21 
September 2005, the make up of the various 
committees is not in compliance with the 
guidelines set out in the Combined Code. 
On his appointment as chairman, Peter was 
considered independent. However, under 
the terms of the Combined Code he loses 
this independent status after this date. The 
board are currently reviewing the structure 
of the various committees and on 16 January 
2006 Jim Webster was appointed as a new 
independent non-executive director.
Following Peter’s appointment as chairman, 
the company has not appointed a new senior 
independent non-executive director. The board 
hopes to make this appointment as soon as 
practicably possible.
As noted on p17, the board does not currently 
have a process in place for evaluating board 
performance. Again this is being reviewed, 
and professional advice is being sought on the 
most appropriate process.
The Board
The posts of chairman and Chief Executive 
are held by different directors. Clear divisions 
of accountability and responsibility exist and 
operate effectively for these positions. As at 
31 December 2005, the board of Raymarine 
plc comprised four executive directors, 2 non-
executive directors, and Peter Ward, the non-
executive chairman. Raymarine was below the 
FTSE 350 throughout the year immediately 
prior to the 12 months ended 31 December 
2005, and except as noted above met the 
requirements of the Combined Code for 
smaller companies. Peter Ward’s appointment 
as non-executive chairman commenced on 21 
September 2005 following the retirement of 
the previous incumbent, Roger Thomas. For 
details of Peter Ward’s other commitments 
please see his biography on p15. One of the 
non-executive directors as at 31 December 
2005, Paul Boughton was considered by the 
board to be independent in character and 
judgment.
This director:
• has not been an employee of the group 
within the last 5 years;
• has not, or has not had within the last three 
years, a material business relationship with 
the group;
• does not receive remuneration other than a 
director’s fee;
(a) Retired as Chairman on 21 September 2005 and as independent non-executive director on 30 September 2005.
(b) Appointed 16 January 2006.
The directors attendance at the scheduled 
meetings during the year ended 31 December 
2005 was as follows:
The board scheduled 10 meetings during the year ended 31 December 2005 and additional ad hoc meetings were convened as necessary to deal 
with urgent matters as they arose. The table above shows the attendance of directors at regular board meetings, and at the audit, nominations and 
remuneration committees held during the year.
Raymarine Annual Report 2005 16 • has no close family ties with any of the 
group’s advisers, directors or senior 
employees;
• holds no cross-directorships or has no 
signiﬁ cant links with other directors 
through involvement in other companies or 
bodies; or
• does not represent a signiﬁ cant shareholder. 
The remaining non-executive director, 
Nicholas Turner, who represents a signiﬁ cant 
shareholder, is not considered independent. 
Peter Ward acted as the senior independent 
non-executive director until his appointment 
as chairman on 21 September 2005. As noted 
above, no replacement had been appointed by 
31 December 2005. The structure of the board 
and the integrity of the individual directors 
ensure that no one individual or group can 
dominate the decision making process. 
Part of Peter Ward’s role as chairman is to 
secure good corporate governance. He is 
responsible for leadership of the board, for 
ensuring its effectiveness in all aspects of its 
role, for setting its agenda and for ensuring 
that all directors (both executive and non-
executive) are encouraged and enabled to 
contribute fully to the activities and decisions 
of the board.
The board has a procedure through which the 
directors are able to take independent advice 
at the company’s expense in the furtherance 
of their responsibilities. The directors have 
access to the advice and services of the 
Company Secretary. The Company Secretary 
is responsible for ensuring that board 
procedures are followed and that applicable 
rules and regulations are complied with. 
The company has provided the directors and 
ofﬁ cers of the company with appropriate 
insurance cover.
Upon new appointment, all directors, 
executive and non-executive, receive a formal 
induction which includes meeting the other 
directors and key senior executives, visiting 
site locations and formal presentations on the 
company and its activities.
Training for already serving directors is 
provided on an as needed basis and includes 
site visits, discussions with senior executives 
on speciﬁ c aspects of the business and 
board presentations covering such aspects 
as pensions, health and safety issues and 
regulatory changes. The board regularly 
assesses the need for director training.
The board meets regularly throughout the 
year and all necessary information is supplied 
to the directors on a timely basis to enable 
them to discharge their duties effectively. 
Additionally, special meetings take place or 
other arrangements are made when board 
decisions are required in advance of regular 
meetings. In accordance with the Combined 
Code, the board has established guidelines 
requiring speciﬁ c matters to be subject to 
a decision by the full board. The board is 
responsible for leading and controlling the 
company and in particular for formulating, 
reviewing and approving the company’s 
strategy, budget, major items of capital 
expenditure and acquisitions and disposals. In 
addition, the board has established an audit 
committee, a remuneration committee and a 
nomination committee with formally delegated 
duties and responsibilities, each of which has 
written terms of reference. These terms of 
reference are available on the website www.
raymarine.com or at the AGM. The executive 
operational management team, comprising the 
executive directors and other senior managers, 
meet weekly.
Jim Webster was appointed as a non-executive 
director on 16 January 2006, subject to 
shareholders approval at the forthcoming AGM. 
His extensive experience in the high technology 
ﬁ eld will be a valuable addition to the company 
adding further depth to the board. The process 
for nomination and appointment is set out in 
the nomination committee’s report on p18.
The board is in the process of establishing 
a structured process for evaluating and 
monitoring the board and its committees and 
the individual directors. The chairman plans to 
set objectives for each of the committees and 
meet annually with the non-executive directors 
to review the performance of the executive 
directors. The non-executive directors plan 
to meet annually to appraise the chairman’s 
performance.
Biographical details of all the directors are 
given on page 14-15.
Above: C70 standalone display and Ray240E VHF radio installation onboard a Sealine sports cruiser.
17 Raymarine Annual Report 2005  The Audit Committee
The audit committee is chaired by Paul 
Boughton. Peter Ward was the only other 
member following the retirement of 
Roger Thomas on 21 September 2005. Jim 
Webster was appointed as a member of 
the audit committee on 16 January 2006 
at which time Peter Ward resigned. Only 
independent non-executive directors are 
on the audit committee and members 
of the committee have no links with 
the company’s external auditors. Whilst 
the chairman being a member of the 
audit committee does not contravene 
the Combined Code, it is not in line 
with the recommendations of the Smith 
Guidance. In the opinion of the board 
this arrangement was appropriate for 
the circumstances of the group. The audit 
committee meets formally at least twice 
per year and otherwise as required. The 
audit committee considers all matters 
relating to ﬁ nancial controls and reporting, 
audits, the scope and results of the audits, 
the independence and objectivity of the 
external auditors and keeps under review 
the effectiveness of the company’s controls 
and risk management. The committee 
is authorised by the board to seek and 
obtain any information it requires from any 
ofﬁ cer or employee of the company and to 
obtain external legal or other independent 
advice as is deemed necessary by it. The 
ultimate responsibility for reviewing and 
approving the annual report and accounts, 
and preliminary and interim statements 
remains with the board. At the invitation 
of the committee, the Chairman, the Chief 
Executive, the Finance Director, other 
directors, representatives from the ﬁ nance 
function and the external auditors may 
attend and speak at the meetings. Three 
meetings of the audit committee took 
place during the year ended 31 December 
2005.
The members of the audit committee as 
a whole have recent relevant ﬁ nancial 
experience.
Please see the individual members 
biographies on p15 for details of their 
relevant qualiﬁ cations.
The audit committee is responsible for 
considering the need for an internal audit 
function. After careful consideration of 
the relative size and complexity of the 
business, it is not currently considered that 
one is required.
The committee is also responsible for making 
recommendations to the board in respect of the 
appointment or re-appointment of the group’s 
external auditors and, subject to the approval 
of shareholders, recommends to the board the 
audit fee to be paid to the external auditors. 
The committee is also charged with monitoring 
the independence of the external auditors and 
the objectivity and effectiveness of the external 
audit process. The objectivity and independence 
of the external auditors is considered on a 
regular basis, with particular regard to the level 
of non-audit fees.
As part of an overall process of reviewing the 
terms of the group’s suppliers the statutory 
audit of Raymarine, held by KPMG, was put 
to competitive tender, which had not been 
done for a considerable number of years. 
Three leading ﬁ rms of auditors, including the 
incumbents, submitted proposals in a process 
managed by the full board. As a result of this 
process Deloitte & Touche LLP have succeeded 
KPMG as the group’s auditors.
The Remuneration Committee
Details of the remuneration committee, 
together with a statement of the group’s 
remuneration strategy and policy and details 
of directors’ remuneration, are set out in the 
Directors’ Remuneration Report on pages 
20 to 23. Four meetings of the remuneration 
committee took place during the year ended 31 
December 2005.
Jim Webster was appointed chairman of the 
remuneration committee on 16 January 2006.
The Nomination Committee
The nomination committee is chaired by Peter 
Ward. Its other members are Paul Boughton 
and Nicholas Turner. Roger Thomas retired 
as a member of the nomination committee 
on 21 September 2005. Until this time the 
majority of the members of this committee 
were independent non-executive directors. 
The committee meets formally at least twice 
a year and otherwise as required. It has 
responsibility for considering the size, structure 
and composition of the board, the retirement 
and appointment of directors and the chairman 
and makes appropriate recommendations to 
the board in relation to these matters. Before 
these recommendations are made, detailed job 
descriptions are prepared for the relevant roles 
and, when appropriate, external expert advice 
is taken. Potential candidates must pass a 
rigorous interview process with the nomination 
committee members, and also on occasion with 
external advisors, before their 
formal recommendation is made to the board. 
When appointing a non-executive director, 
a formal notice is sent clearly stating the 
expectations of the company with respect to 
time commitments, committee membership 
and other duties. 
The terms and conditions of appointment 
of non-executive directors are available for 
inspection at the company’s registered ofﬁ ce 
during normal business hours and at the AGM.
All new directors are submitted for election by 
the shareholders in their ﬁ rst year. All directors 
have to submit themselves for re-election at 
least every three years if they wish to continue 
serving and are considered by the board to be 
eligible.
No external advertising was undertaken for 
the post of Chairman following the retirement 
of Roger Thomas on 21 September 2005. Peter 
Ward, the previous deputy chairman, was ﬁ rst 
appointed as an independent non-executive 
director in December 2004 following the 
required process noted above with the aid of 
external professional recruitment advisors. 
During the recruitment process it was agreed 
that Peter would succeed Roger on his 
retirement. Peter Ward met the criteria of 
independence as set out in the Combined Code 
upon his appointment as Chairman.
The appointment of Jim Webster as non-
executive director on 16 January 2006 was 
made following the required process as 
indicated above with the aid of external 
professional recruitment advisors. Jim Webster 
also became a member of the nomination 
committee upon his appointment to the board.
Two meetings of the nomination committee 
took place during the year ended 31 December 
2005.
Going Concern
After making enquiries, the directors have 
formed a judgment, at the time of approving 
the ﬁ nancial statements, that there is a 
reasonable expectation that the company and 
the group have adequate resources to continue 
in operational existence for the foreseeable 
future. For this reason, the directors continue to 
adopt the going concern basis in preparing the 
ﬁ nancial statements.
Raymarine Annual Report 2005 18 Internal Controls
1. Introduction
The board has established procedures to meet 
the requirements of the new Combined Code 
and its related guidance. These procedures, 
which are subject to a regular review, provide 
an ongoing process for identifying, evaluating 
and managing any signiﬁ cant risks faced by 
the group.
2. Responsibility
The board has overall responsibility for the 
system of internal control, for reviewing 
its effectiveness and assessing risk. The 
responsibility for establishing detailed control 
and risk management procedures within each 
part of the business lies with the executive 
directors. A sound system of internal control 
is designed to manage rather than eliminate 
the risk of failure to achieve business 
objectives and can only provide reasonable 
and not absolute assurance against material 
misstatement or loss.
3. Control environment
The board is committed to business 
integrity, high ethical and moral values and 
professionalism in all its activities, principles 
with which managers and employees are 
required to comply. There is a deﬁ ned 
organisational structure with lines of 
responsibility and delegated authority which 
allows the board to plan, execute, control and 
monitor the business in a manner consistent 
with the achievement of the group’s objectives. 
The day-to-day business management is 
delegated to the executive directors and 
senior managers under the direction of the 
Chief Executive. As noted above, the board 
retains certain key decisions to itself, enabling 
it to maintain control over the key business 
decision-making processes and signiﬁ cant 
transactions in terms of size, type or risk.
4. Monitoring
The group adopts a professional approach 
to ﬁ nancial reporting and information in 
compliance with generally accepted accounting 
practice. Detailed budgets are prepared 
annually for each part of the business and 
are subject to approval of the board. Revised 
forecasts for the remaining months of the year 
are completed monthly and are subject to 
approval of the board if they differ signiﬁ cantly 
from the budget. Each month a report of 
ﬁ nancial performance is prepared together 
with commentary on key variances to forecast, 
budget and prior year. During each month, 
sales and margin reports are issued three times 
per week.
The group has a ﬁ nancial reporting manual 
detailing the key procedures and control 
expectations. Reports on internal ﬁ nancial 
controls, including any reports from the 
external auditors, are reviewed by the audit 
committee.
5. Risk assessment
The board has taken into account the relevant 
provisions of the Combined Code with respect 
to risk assessment in formulating the systems 
and procedures in operation in the group. The 
board is aware of the need to conduct regular 
risk assessments to identify any deﬁ ciencies in 
the controls currently operating over all aspects 
of the group. The group conducts formal 
ongoing risk assessments covering all aspects 
of the business. It will also report by exception 
on any material changes. Once a risk has been 
identiﬁ ed, the board assesses the probability 
and potential impact of that risk. The board 
then reviews the effectiveness of, or puts in 
place, mitigating controls to minimise any 
impact to the group.
6. Effectiveness
The directors conﬁ rm that they have 
reviewed the effectiveness of the system of 
internal control, which has been in operation 
throughout the year, and up to the date 
of this report in line with the guidance for 
directors on internal control issued by the 
Turnbull Committee. The board continues 
to take steps to embed internal control and 
risk management procedures further into 
the operations of the business and to deal 
with areas of improvement which come to 
management’s and the board’s attention.
Health, safety and the environment
The company is committed to the health, safety 
and welfare of its employees and recognises 
that safe operations depend not only on 
technically sound equipment and facilities but 
also on competent people and an active health, 
safety and environmental culture.
The group seeks to achieve high standards of 
environmental practice. The group monitors 
environmental developments and seeks to 
take appropriate action including committing 
appropriate levels of capital expenditure where 
required. While the group has a programme 
of continued improvement, no speciﬁ c major 
capital expenditure is currently expected.
The company’s management is accountable 
for understanding and managing health, 
safety and environmental risks and in 
meeting health, safety and environmental 
objectives. The company has formalised 
a documented health and safety policy 
and the Head of Human Resources 
is responsible for coordinating the 
implementation of such policy, reporting to 
the board via the Chief Executive.
Relations with shareholders
The group recognises the importance 
of regular communication with all of its 
shareholders. The full Annual Report and 
Financial Statements and the Interim 
Report are sent to shareholders each year, 
and are published on the group’s website. 
These reports are intended to provide 
shareholders and other interested parties 
with a clear and balanced understanding 
of the group’s operational performance 
and prospects and its ﬁ nancial results and 
position.
All investors are kept informed of key 
business activities, decisions, appointments 
etc. via regulatory news and press 
releases and the group’s website. There 
is also regular dialogue with institutional 
shareholders throughout the year and 
general presentations are made by the 
Chief Executive and Finance Director 
following the announcement of the full 
and half-year results. Other directors, 
including non-executive directors, attend 
meetings with major shareholders if 
requested.
All shareholders have the opportunity 
to put questions to the directors at the 
company’s AGM, at which a report is 
made on the highlights of the key business 
developments during the ﬁ nancial year 
under review. The chairmen of each of the 
remuneration and audit committees attend 
the AGM to answer speciﬁ c questions 
from shareholders. Notice of the AGM 
is circulated to all shareholders at least 
21 working days prior to the meeting. 
Separate resolutions are proposed at the 
AGM on each substantially separate issue. 
Proxy votes are counted on all resolutions 
and, where votes are taken by a show of 
hands, the proxy results are subsequently 
announced to the meeting.
19 Raymarine Annual Report 2005  Directors’ Remuneration Report
Introduction
This report has been prepared in 
accordance with the Directors’ 
Remuneration Report Regulations 
2002 (“the Regulations”). It outlines 
the membership of the Remuneration 
Committee (“the Committee”) and 
explains the various elements of the 
company’s remuneration policy together 
with details of directors’ remuneration in 
respect of the year ended 31 December 
2005. In accordance with the Regulations, 
a resolution to approve this report will be 
proposed at the company’s Annual General 
Meeting to be held on 18 May 2006.
The Regulations require the auditors to 
report to shareholders on the information 
contained in part of this report and to 
state whether, in their opinion, that part 
of the report has been properly prepared 
in accordance with the Companies Act 
1985 (as amended by the Regulations). 
This report has therefore been divided 
into separate sections of audited and 
unaudited information.
The board considers that the company has 
complied throughout the year with the 
requirements of the Combined Code in 
relation to directors’ remuneration.
Unaudited Information
Remuneration Committee
The Committee is comprised solely of non-
executive directors and was chaired until 
21 September 2005 by Peter Ward. Other 
members of the Committee who served 
during the year were Paul Boughton and 
Roger Thomas. Roger Thomas resigned on 21 
September 2005 and was replaced by Nick 
Turner, who was chairman from 21 September 
2005 until 16 January 2006 when Jim Webster 
took over. 
The Committee met 4 times during the year 
ended 31 December 2005 to consider the 
employment terms and remuneration of the 
Chairman, executive directors and senior 
management. The board is then responsible 
for implementing the recommendations. 
In accordance with the Committee’s terms 
of reference, no director may participate in 
discussions relating to his own terms and 
conditions of remuneration. By invitation, the 
Chairman, Chief Executive and the group HR 
Director and external advisors may attend the 
Remuneration Committee but are not present 
when matters relating directly to their own 
remuneration are discussed.
The Committee’s terms of reference are 
available on the company’s website or direct 
from the Company Secretary.
New Bridge Street Consultants LLP (NBSC) 
has provided independent external advice 
throughout the year to assist the Committee 
in formulating its recommendations to 
the board. NBSC were appointed by the 
Committee and only provide advice to the 
company in respect of senior executives’ 
remuneration and employee share schemes 
generally.
Policy
The key policy objective of the Committee is 
to secure, motivate and retain high calibre 
executives with the skills and experience 
necessary to direct and manage the affairs of 
the company. The Committee aims to align 
its remuneration policies with the company’s 
medium and long-term strategy and takes 
account of pay and conditions elsewhere in 
the business when determining executive 
directors’ remuneration. The policy can be 
summarised as follows:
• a package of pay and beneﬁ ts, 
commensurate with comparable packages 
by reference to an appropriate comparator 
group of companies;
• an annual performance incentive bonus 
scheme, which provides rewards which 
reﬂ ect the company’s performance and 
the contribution of individual directors in a 
particular year;
• long-term performance share awards, which 
allow executives to participate in increases 
in shareholder value delivered over time by 
the company; and
• a contributory company pension scheme 
(deﬁ ned contribution), of which some, but 
not all, executive directors are members.
At a target level of performance, 
approximately 40% of the total remuneration 
of executive directors is performance-related, 
rising to approximately 60% at upper quartile 
performance.
The Committee keeps the general policy on 
remuneration described above under annual 
review. The Committee’s implementation of 
the remuneration policy is described below.
In 2006 the Remuneration Committee 
introduced a formal policy of Shareholding 
Guidelines. This policy encourages all 
Executive Directors to build and maintain a 
shareholding in the company. These guidelines 
will be linked to the vesting of future awards 
granted under the 2005 Performance Share 
Plan, the deferred shares element to the 
annual bonus and any other executive share-
based incentive plan that the company may 
operate from time to time.
Executive directors are encouraged to build 
and maintain a shareholding equivalent in 
value to no less than their base salary. In order 
to ensure that progress is made towards this 
target, executives would be required to retain 
shares to a value of 50% of the net of tax 
gain under all executive schemes until the 
threshold is attained.
The Committee will review regularly the 
operation of this policy.
Base salary and beneﬁ ts
When setting base salaries, consideration 
is given to the director’s experience, 
performance and responsibilities. Salaries 
are reviewed annually on 1 January. The 
Committee aims to pay base salaries at 
no higher than a market median level in 
comparison to companies of a similar size and 
nature. In addition to base salaries, executive 
directors receive beneﬁ ts in kind, comprising 
the provision of a fully expensed company 
car or a car allowance, expenses in lieu of 
relocation, life, medical and health insurance.
Raymarine Annual Report 2005 20 20
0
40
60
80
100
120
140
160
180
Raymarine plc
31 Dec 2004 31 Dec 2005
FTSE Small Cap Index
Annual performance incentive bonus
For 2006, the maximum annual bonus will 
be set at up to a maximum of 100% (2005: 
60%) of an executive’s base salary. Bonuses 
will be earned primarily on the achievement 
of operating proﬁ t targets, with elements 
payable on meeting speciﬁ c personal 
performance objectives. As part of the overall 
policy noted above, this increase reﬂ ects 
more demanding performance targets and 
a percentage being based on challenging 
targets related to the outsourcing project. 
Bonuses are payable in cash except any 
amount above 60%, but below 80%, which 
will be settled in shares of the company, 
vesting after one year. Should the targets not 
be met, there is no bonus payable below a 
60% level. Bonuses are payable in cash after 
the completion of the statutory annual audit. 
Long-term incentives 
Shortly before Admission, the company 
adopted the Performance Share Plan (PSP) 
and the Executive Share Option Plan (ESOP). 
In 2005, the PSP was used to grant awards 
and this policy will continue in 2006. 
Under the PSP , executive directors may 
be granted awards entitling them to ﬁ xed 
numbers of ordinary shares at the end of 
speciﬁ ed periods, subject to performance 
conditions being satisﬁ ed. In any year, 
awards will not be granted to an individual 
over shares with a value of greater than 150 
percent of his annual earnings except in 
exceptional circumstances. The company has 
adopted a phased annual grant policy and in 
2006, awards will be made over shares worth 
100% of an executive’s salary. Awards over 
lower percentages will be made to less senior 
executives.
Awards will be subject to performance 
conditions measured by reference to the 
company’s total shareholder return (TSR) 
against the companies comprising the FTSE 
Small Cap Index over a three-year period from 
the start of the ﬁ nancial year in which an 
award is made. There is no provision to retest 
the performance condition. A quarter of the 
award vests at median TSR performance, with 
full vesting at upper quartile TSR performance. 
TSR of all companies is averaged over a three-
month period prior to the beginning and end 
of the performance period.
TSR was selected so as to align the objectives 
of the directors with those of shareholders. 
The FTSE Small Cap Index is an appropriate 
benchmark, as the company is a constituent 
of this Index and there is no appropriate 
direct peer group for TSR performance 
measurement.
TSR performance is independently calculated 
by NBSC and veriﬁ ed by the Committee.
Pensions
Pensions beneﬁ ts to Executive Directors 
consist of a company contribution of 12% of 
basic salary into either the Raymarine deﬁ ned 
contribution Pension Plan, or into a pension 
vehicle of the individuals choice, or directly 
to the executive director in lieu of pension 
contributions.
Total shareholder return
The graph shows the total shareholder return 
for the company since the date of listing 
compared with the FTSE Small Cap Index. 
The company is a member of the FTSE Small 
Cap Index and the constituents of this index 
are used to determine vesting under the PSP . 
Therefore, the Committee considers this is the 
most appropriate benchmark against which 
the relative performance of the company 
should be measured.
Total shareholder return
(Source: Datastream)
This graph shows the value, by 31 December 2005 of £100 invested in Raymarine on 6 December 2004 compared with the value of £100 invested in the 
FTSE Small Cap Index. The other points plotted are the values at intervening ﬁ nancial year-ends.
Value (£)
21 Raymarine Annual Report 2005  External appointments
Where board approval is given for an executive director to accept 
an outside non-executive directorship, unless the appointment 
is in connection with group business, the individual director is 
entitled to retain any fees received. Two directors hold outside non-
executive directorships. Malcolm Miller is a non-executive director 
at AVIS Europe plc (2005 fee – £37,500; 2004 – £35,400) and Tony 
Osbaldiston is a non-executive director at BSS Group plc (2005 fee 
– £29,000; 2004 – £28,000).
Non-executive directors’ remuneration
The remuneration of non-executive directors is determined by the 
board within the limits set out in the company’s Articles of Association. 
The non-executive directors do not participate in the bonus scheme, 
long-term incentive arrangements, nor do they receive beneﬁ ts in kind 
or compensation on early termination of their appointment. 
The terms of appointment of non-executive directors are documented 
in letters of appointment between the company and the director.
In the event that notice to terminate their appointment is given by 
either party, there is a three month written notice period required.
Dates of original appointment of non-executive Directors:
Peter Ward: 1 December 2004
Paul Boughton: 1 December 2004
Nicholas Turner: 28 January 2001
Jim Webster: 16 January 2006
The terms of appointment of non-executive directors are documented 
in letters of appointment between the company and the director. Their 
term of appointment does not extend beyond the date on which they 
are next subject to re-election by shareholders.
Audited information
The executive directors’ bonus scheme for the year ended 31 
December 2005 was based on operating performance. Recognising 
the excellent performance of the company over the year, the actual 
performance achieved provided the executive directors with a bonus 
equal to 45% of basic salary. There is an additional bonus equal to 
a maximum of 15% of basic salary, which is related to non-ﬁ nancial 
strategic performance. Payout is expected to be close to the maximum 
for 2005.
All executive directors, except Tony Osbaldiston and Malcolm Miller, 
are members of deﬁ ned contribution schemes. The company provides 
contributions of 12% of basic salary. Performance related bonuses and 
beneﬁ ts in kind are not pensionable. Details of the contributions made 
by the company in respect of directors under deﬁ ned contribution 
schemes are set out on the following page.
Contract Date Term Notice by Company Notice by Director
Malcolm Miller 30 November 2004 Rolling 12 months 6 months
Kieran Breheny 30 November 2004 Rolling 12 months 6 months
Terry Carlson 30 November 2004 Rolling 12 months 6 months
Tony Osbaldiston 30 November 2004 Rolling 12 months 6 months
Service contracts
No executive director has a service contract requiring a notice period from the company of more than one year. The policy on early termination 
is to provide compensation, which reﬂ ects the company’s contractual obligations. In the event that a notice to terminate the service contract 
is given by either party, the company may use its sole discretion to pay the executive a sum equal to 120% of his basic salary in lieu of any 
unexpired period of notice. 
Details of the executive directors’ service 
contracts are:
Raymarine Annual Report 2005 22 Interests under scheme at 
01/01/2005
Awards granted 
(maximum number of 
shares)
Interests under scheme at 
31/12/2005
Crystallising dates of 
awards
Name of Director
Malcolm Miller – 194,118 194,118 28/04/08
Kieran Breheny – 74,303 74,303 28/04/08
Terry Carlson – 104,285 104,285 28/04/08
Tony Osbaldiston – 136,223 136,223 28/04/08
 
Salary and Fees
£’000
Beneﬁ ts in Kind
2
£’000
Performance 
Related
Annual Bonus
£’000
Pension 
Contribution
£’000
Total for the 
year ended 31 
December 2005 
£’000
Total for the 
year ended 31 
December 2004 
£’000
Executive
Malcolm Miller 287 16 177 34 514 457
Kieran Breheny 153 8 90 13 264 189
Terry Carlson
1
174 19 110 22 325 293
Les Duerdin
3
–––– – 118
Ray Green
3
–––– – 310
Martin McBride
3
–––– – 117
Tony Osbaldiston 232 22 132 28 414 93
Stuart Thompson
3
–––– – 154
Non-Executive
Peter Ward 40 – – – 40 3
Roger Thomas 45 – – – 45 28
Paul Boughton 30 – – – 30 3
Nicholas Turner 31 – – – 31 21
Total 992 65 509 97 1,663 1,786
Notes: 
1 The emoluments for Terry Carlson were designated and paid in US$. The ﬁ gures have been converted at the average rate of US$1.84 (2005) and US$1.83 (2004).
2 The beneﬁ ts in kind relate to fully expensed car beneﬁ t, health and life insurance and accommodation (in lieu of relocation).
3 Resigned as a director of the company in 2004.
Share options and incentives
The company also operates the PSP . The PSP entitles executive directors and other employees of the group to be granted awards entitling them to 
a ﬁ xed number of ordinary shares at the end of speciﬁ ed periods, subject to conditions relating to Total Shareholder Return being satisﬁ ed. 
Details of directors’ interests in the schemes are as follows:
The remuneration of the directors of the company is set out below: 
The price of an ordinary share on 3 May 2005, when the 2005 award was made was £2.15. The award is subject to the performance condition for 
PSP awards as outlined in the policy section. The target for the above awards is explained above in the policy on long term incentives.
The lowest and highest share prices during the year ended 31 December 2005 were 161p and 273p. The mid-market price of the company’s 
shares were 161p (1 January 2005) and 242p (31 December 2005). 
Nicholas Turner
Chairman of the Remuneration Committee
23 Raymarine Annual Report 2005  1923  Raytheon launches ﬁ rst Depth Sounder
1958  Raytheon acquires Apelco
1974  Nautech/Autohelm is formed
1975  British Design Award for the ﬁ rst Autohelm tiller autopilot
1984  Launch of Autohelm ‘keyboard micro’ autopilots, the ﬁ rst cockpit autopilots in the world to employ digital control systems
1988  British Design Award for Autohelm 4000 cockpit-installed wheel autopilot
1989  British Design Award and Silk Cut Nautical Award for the SeaTalk digital communications protocol, linking instruments and autopilots
1991  Launch of Autohelm NavCenter, ﬁ rst generation electronic chartplotter
1992  Integration of GPS technology into SeaTalk navigation, instrument and autopilot control systems
1992  DAME Award for ST2000 tiller autopilot
1996  Imtec Award for Apelco L365 entry-level LCD ﬁ shﬁ nder
  DAME Award for the ST80 Instrument system
1997  Launch of the Pathﬁ nder Radar – ﬁ rst leisure marine radar to be designed and built outside Japan for 15 years.
1999  Launch of High Speed Bus (HSB) protocol integrating high resolution radar and chartplotters
2000  Acquisition of Kiwitech and launch of RayTech PC software packages
  DAME Award for RL80C and RL80CRC 10” colour radar and radar/chartplotter
2001  Launch of Advanced Steering Technology (AST) inboard autopilot course computers
2002  Imtec Award for RayTech Version 4 PC Navigation software integrated with on-board navigation systems
2003  NMEA ‘Best in Show’ HDFI – High Deﬁ nition Fish Imaging
2004 DAME Award for C Series multi-function display
  NMEA Best in Show Award 2004 for C Series multi-function display
 December 6 - Raymarine plc ﬂ oats on the London Stock exchange
2005 Motor Boating magazine Best of the Year Awards for E Series High Performance Multi-function Navigation Displays and S1000 autopilot
2006 NMEA Best in Show Award 2005 for E Series multi-function display
 SAIL Pittman Award for CAM100 night-and-day video camera
Company History
Raymarine Annual Report 2005 24 25 Raymarine Annual Report 2005 
Financial Information Raymarine Annual Report 2005 26
Interest at End of Year Interest at Start of Year
Name of Director
Peter Ward 40,000 20,000
Malcolm Miller 778,192 1,278,192
Paul Boughton 26,000 19,736
Kieran Breheny 872,661 1,272,661
Terry Carlson 351,032 701,664
Tony Osbaldiston 145,905 145,905
Nicholas Turner 80,615 41,400
Directors’ Report
The directors present their annual report on the affairs of the group, 
together with the ﬁ nancial statements and auditors’ report, for the 
year ended 31 December 2005.
Principal activities
The principal activities of the group comprise the manufacture 
and marketing of navigation equipment within the marine market; 
approximately 90% of group production is exported.
The subsidiaries principally affecting the proﬁ ts or net assets of the 
group in the year are listed in note 44 to the ﬁ nancial statements.
Business review
A review of the business of the group, including a list of the principal 
risks and uncertainties facing the group, is set out in the chairman’s 
statement on page 2, the chief executive ofﬁ cer’s review on pages 5 
to 7 and the ﬁ nancial review on pages 8 to 13.  The ﬁ nancial review 
also contains the group’s policy and objective in respect of the use of 
ﬁ nancial instruments.
Details of signiﬁ cant events since the balance sheet date are contained 
in note 34 to the ﬁ nancial statements.
Dividends
The directors recommend a ﬁ nal dividend of 5p per ordinary share to 
be paid on 26 May 2006 to ordinary shareholders on the register on 5 
May 2006 which, together with the interim dividend of 2p paid on 30 
September 2005, makes a total of 7p for the year (2004 - nil).
Directors
The directors, who served throughout the year except as noted, were 
as follows:
Peter Ward   (Non-executive chairman)
Roger Thomas   (Retired 30 Sept. 2005) 
Malcolm Miller   (Chief executive ofﬁ cer)
Paul Boughton   (Non-executive)
Kieran Breheny    
Terry Carlson  
Tony Osbaldiston   
Nicholas Turner   (Non-executive)   
Roger Thomas retired as non-executive chairman on 21 September 
2005 and retired from the board on 30 September 2005.
Following extensive consultations and a rigorous recruitment process, 
Jim Webster was appointed as non-executive director on 16 January 
2006 subject to approval by the shareholders at the AGM.
Company Secretary
Terri Howell
In accordance with the company’s Articles of Association, Peter Ward, 
Malcolm Miller, Paul Boughton, Terry Carlson and Tony Osbaldiston will 
be retiring at the next AGM and, being eligible, offer themselves for 
re-election. 
Biographical details of all directors can be found on pages 14 and 15.
Directors’ interests
The directors who held ofﬁ ce at 31 December 2005 had the following 
interests in the ordinary shares of the company according to the register of 
directors’ interests:
No changes took place in the interests of directors between 31 December 2005 and 27 February 2006. 27 Raymarine Annual Report 2005 
Directors’ share options
None of the directors has any share options as at 31 December 2005.
Supplier payment policy
The company’s policy, which is also applied by the group, is to ﬁ x 
terms of payment with suppliers when agreeing the terms of business 
transactions, to ensure that the supplier is aware of those terms 
and to abide by the agreed terms of payment when the supplier has 
satisfactorily provided the goods or services in accordance with the 
terms of contract.  Trade creditors of the company at 31 December 
2005 were equivalent to 38 (2004: 40) days’ purchases, based on the 
average daily amount invoiced by suppliers during the year.
Charitable and political contributions
The group made no political contributions during the year (2004: £nil). 
Charitable donations amounted to £5,145 (2004: £1,316).
Substantial shareholdings
On 28 February 2006, the company had been notiﬁ ed, in accordance 
with sections 198 to 208 of the Companies Act 1985, of the following 
interests in the ordinary share capital of the company.
Name of holder Number %
AXA S.A. 10,132,000 12.2
HgCapital 7,298,341 8.8
Acquisition of the company’s own shares
At the end of the year, the directors had authority, under the 
shareholders’ resolution of 20 May 2005, to purchase through the 
market 8,277,343 of the company’s ordinary shares at prices ranging 
between £0.01 and an amount equal to 105% of the average of the 
middle market quotations of the company’s ordinary shares as derived 
from the London Stock Exchange Daily Ofﬁ cial List for the ﬁ ve business 
days immediately preceding the day on which such share is contracted 
to be purchased (exclusive of expenses paid) per share. This authority 
expires on 18 May 2006.
Employees
The group continued its policy of providing regular information on 
the ﬁ nancial performance, business activities and related matters to 
all employees. Extensive team brieﬁ ng is operational in the group to 
ensure employee awareness of factors affecting group performance 
and their involvement in decisions. An ‘open door’ policy is operated 
under which any employee may seek information from senior 
management on business performance.
Group policy with regard to disabled people is to provide equal 
employment opportunity by giving full and fair consideration to their 
applications for employment and continuing employment, wherever 
possible, of employees who become disabled and providing suitable 
opportunities for their training, career development and promotion.
The employee share scheme has been running successfully since its 
inception in December 2004. It is open to all employees and allows 
participants the opportunity to buy shares by deduction from their pre-
tax salary. In addition, all employees receive an annual bonus related 
to the overall proﬁ tability of the group.
Annual General Meeting
The AGM will be held in the Little Ship Club, Bell Wharf Lane, Upper 
Thames Street, London, EC4R 3TB on Thursday 18 May 2006 at 2pm. 
The Notice of Meeting is contained in a separate letter from the 
chairman accompanying this report.
Auditors
As part of an overall process of reviewing the terms of the group’s 
suppliers the statutory audit of Raymarine, held by KMPG, was put 
to competitive tender, which has not been done for a considerable 
number of years. Three leading ﬁ rms of auditors, including the 
incumbents, submitted proposals in a process managed by the full 
board. As a result of this process Deloitte & Touche LLP have succeeded 
KPMG as the group’s auditors.
By order of the board
Malcolm Miller
Chief Executive Ofﬁ cer
27 February 2006
Raymarine plc
Quay Point
Northarbour Road
Portsmouth
Hampshire PO6 3TD Raymarine Annual Report 2005 28
Statement of Directors’ Responsibilities
The directors are responsible for preparing the Annual Report and the 
ﬁ nancial statements. The directors are required to prepare ﬁ nancial 
statements for the group in accordance with International Financial 
Reporting Standards (IFRS) and have also elected to prepare ﬁ nancial 
statements for the company in accordance with IFRS. Company 
law requires the directors to prepare such ﬁ nancial statements in 
accordance with IFRS, the Companies Act 1985 and Article 4 of the IAS 
Regulation.
International Accounting Standard 1 requires that ﬁ nancial statements 
present fairly for each ﬁ nancial year the company’s ﬁ nancial position, 
ﬁ nancial performance and cash ﬂ ows. This requires the faithful 
representation of the effects of transactions, other events and 
conditions in accordance with the deﬁ nitions and recognition criteria 
for assets, liabilities, income and expenses set out in the International 
Accounting Standards Board’s ‘Framework for the preparation and 
Presentation of Financial Statements’. In virtually all circumstances, a 
fair presentation will be achieved by compliance with all applicable 
International Financial Reporting Standards. 
Directors are also required to:
•  properly select and apply accounting policies;
•  present information, including accounting policies, in a manner 
that provides relevant, reliable, comparable and understandable 
information; and
•  provide additional disclosures when compliance with the speciﬁ c 
requirements in IFRS is insufﬁ cient to enable users to understand 
the impact of particular transactions, other events and conditions on 
the entity’s ﬁ nancial position and ﬁ nancial performance.
The directors are responsible for keeping proper accounting records 
which disclose with reasonable accuracy at any time the ﬁ nancial 
position of the company, for safeguarding the assets, for taking 
reasonable steps for the prevention and detection of fraud and 
other irregularities and for the preparation of a directors’ report and 
directors’ remuneration report which comply with the requirements of 
the Companies Act 1985.
The directors are responsible for the maintenance and integrity of the 
company website. Legislation in the United Kingdom governing the 
preparation and dissemination of ﬁ nancial statements may differ from 
legislation in other jurisdictions.  29 Raymarine Annual Report 2005 
Independent Auditors’ Report to the members of Raymarine plc
We have audited the group ﬁ nancial statements (the “ﬁ nancial 
statements”) of Raymarine plc for the year ended 31 December 2005 
which comprise the consolidated income statement, the consolidated 
balance sheet, the consolidated cash ﬂ ow statement, the consolidated 
statement of recognised income and expense, the statement of 
accounting policies and the related notes. These ﬁ nancial statements 
have been prepared under the accounting policies set out therein.
The corporate governance statement and the directors’ remuneration 
report are included in the individual company annual report of 
Raymarine plc for the year ended 31 December 2005. We have 
reported separately on the individual company ﬁ nancial statements 
of Raymarine plc for the year ended 31 December 2005 and on the 
information in the directors’ remuneration report included in the 
individual company annual report that is described as having been 
audited. 
This report is made solely to the company’s members, as a body, 
in accordance with section 235 of the Companies Act 1985.  Our 
audit work has been undertaken so that we might state to the 
company’s members those matters we are required to state to them 
in an auditors’ report and for no other purpose.  To the fullest extent 
permitted by law, we do not accept or assume responsibility to anyone 
other than the company and the company’s members as a body, for 
our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the annual report and the 
ﬁ nancial statements in accordance with applicable United Kingdom 
law and International Financial Reporting Standards (IFRSs) as adopted 
for use in the European Union are set out in the statement of directors’ 
responsibilities.
Our responsibility is to audit the ﬁ nancial statements in accordance 
with relevant United Kingdom legal and regulatory requirements and 
International Standards on Auditing (UK and Ireland). 
 We report to you our opinion as to whether the ﬁ nancial statements 
give a true and fair view in accordance with the relevant framework 
and whether the ﬁ nancial statements have been properly prepared 
in accordance with the Companies Act 1985 and Article 4 of the IAS 
Regulation.  We report to you if, in our opinion, the directors’ report is 
not consistent with the ﬁ nancial statements. We also report to you if 
we have not received all the information and explanations we require 
for our audit, or if information speciﬁ ed by law regarding directors’ 
remuneration and transactions with the company and other members 
of the group is not disclosed.
 We review whether the corporate governance statement reﬂ ects 
the company’s compliance with the nine provisions of the 2003 FRC 
Combined Code speciﬁ ed for our review by the Listing Rules of the 
Financial Services Authority, and we report if it does not.  We are not 
required to consider whether the board’s statement on internal control 
covers all risks and controls, or form an opinion on the effectiveness 
of the group’s corporate governance procedures or its risk and control 
procedures.
We read the directors’ report and the other information contained 
in the annual report for the above year as described in the contents 
section and we consider the implications for our report if we become 
aware of any apparent misstatements or material inconsistencies with 
the ﬁ nancial statements. 
Basis of audit opinion
We conducted our audit in accordance with International Standards on 
Auditing (UK and Ireland) issued by the Auditing Practices Board. An 
audit includes examination, on a test basis, of evidence relevant to the 
amounts and disclosures in the ﬁ nancial statements. It also includes 
an assessment of the signiﬁ cant estimates and judgements made by 
the directors in the preparation of the ﬁ nancial statements, and of 
whether the accounting policies are appropriate to the company’s 
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the 
information and explanations which we considered necessary in order 
to provide us with sufﬁ cient evidence to give reasonable assurance 
that the ﬁ nancial statements are free from material misstatement, 
whether caused by fraud or other irregularity or error. In forming our 
opinion we also evaluated the overall adequacy of the presentation of 
information in the ﬁ nancial statements.
Opinion
In our opinion:
• the ﬁ nancial statements give a true and fair view, in accordance 
with IFRSs as adopted for use in the European Union, of the state of 
the group’s affairs as at 31 December 2005 and of its proﬁ t for the 
year then ended; and
• the ﬁ nancial statements have been properly prepared in accordance 
with the Companies Act 1985 and Article 4 of the IAS Regulation.
Separate opinion in relation to IFRS
As explained in Note 2, the group in addition to complying with 
its legal obligation to comply with IFRSs as adopted for use in the 
European Union, has also complied with the IFRSs as issued by the 
International Accounting Standards Board. Accordingly, in our opinion 
the ﬁ nancial statements give a true and fair view, in accordance with 
IFRSs, of the state of the group’s affairs as at 31 December 2005 and 
of its proﬁ t for the year then ended.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors
Southampton
27 February 2006 Raymarine Annual Report 2005 30
Note
Excluding 
Exceptional 
Items
£’000
Exceptional 
Items
£’000
Year Ended 31 
December 2005
£’000
Year Ended 31 
December 2004
£’000
Revenue 3 121,851 – 121,851 106,268
Cost of sales (76,090) – (76,090) (66,288)
Gross proﬁ t 45,761 – 45,761 39,980
Distribution costs (9,314) – (9,314) (8,992)
Administrative expenses:
– Research and development (7,423) – (7,423) (5,115)
– Other administrative expenses (9,464) – (9,464) (8,686)
– Amortisation of patents and know-how (725) – (725) (765)
– Flotation and other non-recurring costs 5a – 321 321 (8,028)
(17,612) 321 (17,291) (22,594)
Restructuring costs 5b – (10,909) (10,909) –
Other operating income – foreign exchange gains 2,830 – 2,830 2,991
Operating proﬁ t 2,6 21,665 (10,588) 11,077 11,385
Investment income 3,8 217 572
Finance costs 9 (3,232) (6,700)
Proﬁ t before tax 8,062 5,257
Taxation credit / (charge) 10 305 (2,765)
Proﬁ t for the year attributable to equity 
shareholders of the parent
27 8,367 2,492
Earnings per share (pence)
Basic 12 10.1p 3.3p
Diluted 12 10.0p 3.0p
All results relate to continuing activities
Consolidated income statement
Year ended 31 December 2005 31 Raymarine Annual Report 2005 
Note
2005
£’000
2004
£’000
Losses on cash ﬂ ow hedges 26 (668) –
Exchange differences on translation of foreign currency operations 348 (413)
Tax on items taken directly to equity 200 –
Net expense recognised directly in equity (120) (413)
Transfers
Transfer of the initial carrying amount of hedged items on cash ﬂ ow hedges 26 3,828 –
Related deferred tax on transfer to the initial carrying amount of hedged items on cash ﬂ ow hedges (1,148) –
Transferred to proﬁ t and loss on cash ﬂ ow hedges 26 (2,779) –
Related deferred tax on items transferred from equity 834 –
Other adjustments (75) –
Dividend paid in the period 11 (1,656) –
Proﬁ t for the period 8,367 2,492
Total recognised income and expense for the year attributable to equity shareholders of the 
parent
28 7,251 2,079
Consolidated statement of recognised income and expense
Year ended 31 December 2005 Raymarine Annual Report 2005 32
Note
2005
£’000
2004
£’000
Non-current assets
Intangible ﬁ xed assets 13 42,300 41,119
Property, plant and equipment 14 7,143 10,037
Financial asset 16 –
49,459 51,156
Current assets
Inventories 15 18,656 18,979
Trade and other receivables 16 16,682 15,253
Financial assets 18 381 –
Cash and cash equivalents 2,042 8,117
37,761 42,349
Current liabilities
Trade and other payables 21 16,547 21,888
Tax liabilities 2,474 1,587
Obligations under ﬁ nance leases 20 367 359
Short-term provisions 22 5,720 2,272
25,108 26,106
Net current assets 12,653 16,243
Non-current liabilities
Bank loans 17 39,618 52,357
Financial liability 16 –
Deferred tax liabilities 19 442 2,046
Obligations under ﬁ nance leases 20 450 174
Long-term provisions 22 3,625 2,308
44,151 56,885
Net assets 17,961 10,514
Equity
Share capital 23 828 828
Share premium account 24 3,207 3,166
Equity reserve 25 155 –
Hedging and translation reserves 26 202 (413)
Retained earnings 27 13,569 6,933
Equity attributable to equity shareholders of the parent 28 17,961 10,514
Consolidated balance sheet
At 31 December 2005
The ﬁ nancial statements were approved by the Board of Directors and authorised for issue on 27 February 2006.  
They were signed on its behalf by:
Malcolm Miller 
(Chief Executive Ofﬁ cer) 33 Raymarine Annual Report 2005 
Note
2005
£’000
2004
£’000
29
Consolidated cash fl ow statement
Year ended 31 December 2005
Net cash from operating activities
Investing activities
Proceeds on disposal of property, plant and equipment
Purchases of property, plant and equipment
Expenditure on product development
Net cash used in investing activities
Financing activities
Dividends paid
Net proceeds from issue of ordinary share capital
Repurchase of share capital
Repayments of borrowings
Repayments of obligations under ﬁ nance leases
New bank loans raised
New debt issuance costs
Net cash used in ﬁ nancing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Effect of foreign exchange rate changes
Cash and cash equivalents at end of year
Net debt
1
17,630
465
(3,438)
(3,627)
(6,600)
(1,656)
42
–
(15,174)
(410)
–
–
(17,198)
(6,168)
8,117
93
2,042
38,393
10,390
–
(4,293)
(4,168)
(8,461)
–
1,914
(1,250)
(56,903)
(299)
52,357
(395)
(4,576)
(2,647)
11,671
(907)
8,117
44,773
1
Net debt is calculated as cash less bank loans and obligations under ﬁ nance leases. It does not include ﬁ nancial assets or ﬁ nancial liabilities. Raymarine Annual Report 2005 34
Notes to the fi nancial statements
Year ended 31 December 2005
1. General information
Raymarine plc is a company incorporated in the United Kingdom under 
the Companies Act 1985. The address of the registered ofﬁ ce is given 
on page 76. The nature of the group’s operations and its principal 
activities are set out in note 4 and in the directors’ report on pages 26 
to 27.
These ﬁ nancial statements are presented in pounds sterling because 
that is the currency of the primary economic environment in which the 
group operates.  Foreign operations are included in accordance with 
the policies set out in note 2.
At the date of authorisation of these ﬁ nancial statements, the 
following Standards and Interpretations which have not been applied 
in these ﬁ nancial statements were in issue but not yet effective:
 
IFRS 6 Exploration for and Evaluation of Mineral Resources
IFRS 7 Financial Instruments: Disclosures; and the related 
amendment to IAS 1 on capital disclosures
IFRIC 4 Determining whether an Arrangement contains a Lease
IFRIC 5 Right to Interests Arising from Decommissioning, 
Restoration and Environmental Rehabilitation Funds
The directors anticipate that the adoption of these Standards and 
Interpretations in future periods will have no material impact on the 
ﬁ nancial statements of the company except for additional disclosures 
on capital and ﬁ nancial instruments when the relevant standards come 
into effect for periods commencing on or after 1 January 2007.
2. Signiﬁ cant accounting policies
Basis of accounting
The ﬁ nancial statements have been prepared in accordance with 
International Financial Reporting Standards (IFRSs) for the ﬁ rst time. 
The disclosures required by IFRS 1 concerning the transition from UK 
GAAP to IFRSs are given in note 36.
The ﬁ nancial statements have been prepared on the historical cost 
basis, except for the revaluation of ﬁ nancial instruments. The principal 
accounting policies adopted are set out below.
Basis of consolidation
The consolidated ﬁ nancial statements incorporate the ﬁ nancial 
statements of the company and entities controlled by the company (its 
subsidiaries) made up to 31 December each year. Control is achieved 
where the company has the power to govern the ﬁ nancial and 
operating policies of an investee entity so as to obtain beneﬁ ts from 
its activities.
On acquisition, the assets and liabilities and contingent liabilities 
of a subsidiary are measured at their fair values at the date of 
acquisition. Any excess of the cost of acquisition over the fair values 
of the identiﬁ able net assets acquired is recognised as goodwill. 
Any deﬁ ciency of the cost of acquisition below the fair values of the 
identiﬁ able net assets acquired (i.e. discount on acquisition) is credited 
to proﬁ t and loss in the period of acquisition.
Where necessary, adjustments are made to the ﬁ nancial statements of 
subsidiaries to bring the accounting policies used into line with those 
used by the group.
All intra-group transactions, balances, income and expenses are 
eliminated on consolidation.
Goodwill
Goodwill arising on consolidation represents the excess of the cost of 
acquisition over the group’s interest in the fair value of the identiﬁ able 
assets and liabilities of a subsidiary, associate or jointly controlled 
entity at the date of acquisition.
Goodwill is recognised as an asset and reviewed for impairment at 
least annually. Any impairment is recognised immediately in proﬁ t or 
loss and is not subsequently reversed.  Goodwill arising on acquisitions 
before the date of transition to IFRS has been retained at the previous 
UK GAAP amounts subject to being tested for impairment at that date.
 
On disposal of a subsidiary, associate or jointly controlled entity, the 
attributable amount of goodwill is included in the determination of the 
proﬁ t or loss on disposal.
Revenue recognition
Revenue is measured at the fair value of the consideration received or 
receivable and represents amounts receivable for goods and services 
provided in the normal course of business, net of discounts, VAT and 
other sales-related taxes.
Sales of goods are recognised when goods are delivered and title has 
passed.
Other income
Interest income is accrued on a time basis, by reference to the principal 
outstanding and at the effective interest rate applicable, which is the 
rate that exactly discounts estimated future cash receipts through the 
expected life of the ﬁ nancial asset to that asset’s net carrying amount.
Dividend income from investments is recognised when the 
shareholders’ rights to receive payment have been established.
Leasing
Leases are classiﬁ ed as ﬁ nance leases whenever the terms of the lease 
transfer substantially all the risks and rewards of ownership to the 
lessee. All other leases are classiﬁ ed as operating leases.  Assets held 
under ﬁ nance leases are recognised as assets of the group at their fair 
value or, if lower, at the present value of the minimum lease payments, 
each determined at the inception of the lease. The corresponding 
liability to the lessor is included in the balance sheet as a ﬁ nance lease 
obligation. Lease payments are apportioned between ﬁ nance charges  35 Raymarine Annual Report 2005 
and reduction of the lease obligation so as to achieve a constant 
rate of interest on the remaining balance of the liability. Finance 
charges are charged directly against income, unless they are directly 
attributable to qualifying assets, in which case they are capitalised in 
accordance with the group’s general policy on borrowing costs (see 
below).
Rentals payable under operating leases are charged to income on 
a straight-line basis over the term of the relevant lease.  Beneﬁ ts 
received and receivable as an incentive to enter into an operating 
lease are also spread on a straight line basis over the lease term.
Foreign currencies 
Transactions in functional currencies are recorded at the rates of 
exchange prevailing on the dates of the transactions.  At each balance 
sheet date, monetary assets and liabilities that are denominated 
in foreign currencies are retranslated at the rates prevailing on the 
balance sheet date. Non-monetary assets and liabilities carried at fair 
value that are denominated in foreign currencies are translated at the 
rates prevailing at the date when the fair value was determined. Gains 
and losses arising on retranslation are included in net proﬁ t or loss for 
the period, except for exchange differences arising on non-monetary 
assets and liabilities where the changes in fair value are recognised 
directly in equity.
In order to hedge its exposure to certain foreign exchange risks, 
the group enters into forward contracts and options (see below for 
details of the group’s accounting policies in respect of such derivative 
ﬁ nancial instruments). 
On consolidation, the assets and liabilities of the group’s overseas 
operations are translated at exchange rates prevailing on the balance 
sheet date. Income and expense items are translated at the average 
exchange rates for the period unless exchange rates ﬂ uctuate 
signiﬁ cantly. Exchange differences arising, if any, are classiﬁ ed as 
equity and transferred to the group’s translation reserve per note 26.
Operating proﬁ t
Operating proﬁ t comprises proﬁ t from operations and is stated after 
charging restructuring costs but before investment income and ﬁ nance 
costs.
Retirement beneﬁ t costs 
Payments to deﬁ ned contribution retirement beneﬁ t schemes are 
charged as an expense as they fall due. Payments made to state-
managed retirement beneﬁ t schemes are dealt with as payments to 
deﬁ ned contribution schemes where the group’s obligations under 
the schemes are equivalent to those arising in a deﬁ ned contribution 
retirement beneﬁ t scheme.
Taxation
The tax expense represents the sum of the tax currently payable and 
deferred tax.
The tax currently payable is based on taxable proﬁ t for the year. 
Taxable proﬁ t differs from net proﬁ t as reported in the income 
statement 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 for current tax 
is calculated using tax rates that have been enacted or substantively 
enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on 
differences between the carrying amounts of assets and liabilities in 
the ﬁ nancial statements and the corresponding tax bases used in the 
computation of taxable proﬁ t, and is accounted for using the balance 
sheet 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 proﬁ ts 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 tax proﬁ t nor the accounting proﬁ t.
Deferred tax liabilities are recognised for taxable temporary differences 
arising on investments in subsidiaries, except where the group is able 
to control the reversal of the temporary difference and it is probable 
that the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance 
sheet date and reduced to the extent that it is no longer probable that 
sufﬁ cient taxable proﬁ ts will be available to allow all or part of the 
asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in 
the period when the liability is settled or the asset is realised. Deferred 
tax is charged or credited in the income statement, except when it 
relates to items charged or credited directly to equity, in which case 
the deferred tax is also dealt with in equity.
Property, plant and equipment
Fixtures and equipment are stated at cost less accumulated 
depreciation and any recognised impairment loss.
Depreciation is charged so as to write off the cost or valuation of 
assets, other than land and properties under construction, over their 
estimated useful lives, using the straight-line method, on the following 
bases:
Leasehold land & buildings  Life of the lease
Plant and machinery  7 years
Furniture, ﬁ xtures and ﬁ ttings  7 years
Tools and equipment  4 years
Non-recurring engineering  4 years
Boats  10 years
Computer equipment & software  3 years
Technology licences  4-5 years Raymarine Annual Report 2005 36
Assets held under ﬁ nance leases are depreciated over their expected 
useful lives on the same basis as owned assets or, where shorter, over 
the term of the relevant lease.
The gain or loss arising on the disposal or retirement of an asset is 
determined as the difference between the sales proceeds and the 
carrying amount of the asset and is recognised in income.
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 expenditure, where it meets certain criteria (given 
below), is capitalised and amortised on a straight-line basis over its 
useful life which is estimated to be three years.  Asset lives are subject 
to regular review and an impairment exercise carried out at least 
once a year.  Where no internally-generated intangible asset can be 
recognised, development expenditure is expensed in the period in 
which it is incurred.
An asset is recognised only if all of the following conditions are met:
• the product is technically feasible and marketable;
• the company has adequate resources to complete the development 
of the product;
• the development cost of the asset can be measured reliably; and 
• it is probable that the asset created will generate future economic 
beneﬁ ts.
Patents and trademarks
Patents and trademarks are measured initially at purchase cost and 
are amortised on a straight-line basis over their estimated useful lives 
which is determined to be ten years. 
Impairment of tangible and intangible assets 
excluding goodwill
At each balance sheet date, the group reviews the carrying amounts 
of its tangible and intangible 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 ﬂ ows that are 
independent from other assets, the group estimates the recoverable 
amount of the cash-generating unit to which the asset belongs. An 
intangible asset with an indeﬁ nite useful life is tested for impairment 
annually and whenever there is an indication that the asset may be 
impaired.
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 ﬂ ows 
are discounted to their present value using a pre-tax discount rate that 
reﬂ ects current market assessments of the time value of money and 
the risks speciﬁ c to the asset for which the estimates of future cash 
ﬂ ows 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 (cash-generating unit) is reduced to its recoverable amount. 
An impairment loss is recognised as an expense immediately, unless 
the relevant asset is carried at a revalued amount, in which case the 
impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying 
amount of the asset (cash-generating unit) is increased to the revised 
estimate of its recoverable amount, but so that the increased carrying 
amount does not exceed the carrying amount that would have been 
determined had no impairment loss been recognised for the asset 
(cash-generating unit) in prior years. A reversal of an impairment 
loss is recognised as income immediately, unless the relevant asset 
is carried at a revalued amount, in which case the reversal of the 
impairment loss is treated as a revaluation increase.
Inventories
Inventories are stated at the lower of cost and net realisable value. 
Cost comprises direct materials and, where applicable, direct labour 
costs and those overheads that have been incurred in bringing the 
inventories to their present location and condition. Cost is calculated 
using the ﬁ rst in ﬁ rst out (FIFO) basis. Net realisable value represents 
the estimated selling price less all estimated costs of completion and 
costs to be incurred in marketing, selling and distribution.
Financial instruments
Financial assets and ﬁ nancial liabilities are recognised on the group’s 
balance sheet when the group becomes a party to the contractual 
provisions of the instrument.
Trade receivables
Trade receivables do not carry any interest and are stated at their 
nominal value as reduced by appropriate allowances for estimated 
irrecoverable amounts. 
Financial liabilities and equity
Financial liabilities and equity instruments are classiﬁ ed according to 
the substance of the contractual arrangements entered into. An equity 
instrument is any contract that evidences a residual interest in the 
assets of the group after deducting all of its liabilities.
Bank borrowings
Interest-bearing bank loans and overdrafts are recorded at the 
proceeds received, net of direct issue costs. Finance charges, including 
premiums payable on settlement or redemption and direct issue costs, 
are accounted for on an accruals basis to the proﬁ t and loss account 
using effective interest method and are added to the carrying amount 
of the instrument to the extent that they are not settled in the period 
in which they arise.
Trade payables
Trade payables are not interest-bearing and are stated at their nominal 
value.
Derivative ﬁ nancial instruments and hedge accounting
The group’s activities expose it primarily to the ﬁ nancial risks of 
changes in foreign currency exchange rates and interest rates. The 
group uses foreign exchange forward contracts to hedge these 
exposures. The group does not use derivative ﬁ nancial instruments for 
speculative purposes. 37 Raymarine Annual Report 2005 
2005
£’000
2004
£’000
Sale of goods 121,851 106,268
Royalty income 126 –
Investment income 217 572
Other income 79 –
122,273 106,840
The use of ﬁ nancial derivatives is governed by the group’s policies 
approved by the board of directors, which provide written principles 
on the use of ﬁ nancial derivatives.  The purpose for which a derivative 
is used is identiﬁ ed at inception. To qualify for hedge accounting, the 
contract must be in accordance with established guidelines which 
require that the hedging relationship is documented, ensure it is highly 
effective in achieving its objective, and require that its effectiveness 
can be reliably measured throughout its duration/term.
Changes in the fair value of derivative ﬁ nancial instruments that are 
designated and effective as hedges of future cash ﬂ ows are recognised 
directly in equity and the ineffective portion is recognised immediately 
in the income statement. If the cash ﬂ ow hedge of a ﬁ rm commitment 
or forecasted transaction results in the recognition of an asset or 
a liability, then, at the time the asset or liability is recognised, the 
associated gains or losses on the derivative that had previously been 
recognised in equity are included in the initial measurement of the 
asset or liability. For hedges that do not result in the recognition of an 
asset or a liability, amounts deferred in equity are recognised in the 
income statement in the same period in which the hedged item affects 
net proﬁ t or loss.
For an effective hedge of an exposure to changes in the fair value, the 
hedged item is adjusted for changes in fair value attributable to the 
risk being hedged with the corresponding entry in proﬁ t or loss.  Gains 
or losses from re-measuring the derivative, or for non-derivatives the 
foreign currency component of its carrying amount, are recognised in 
proﬁ t or loss.
Changes in the fair value of derivative ﬁ nancial instruments that 
do not qualify for hedge accounting are recognised in the income 
statement as they arise. 
Hedge accounting is discontinued when the hedging instrument 
expires or is sold, terminated, or exercised, or no longer qualiﬁ es for 
hedge accounting. At that time, any cumulative gain or loss on the 
hedging instrument recognised in equity is retained in equity until the 
forecasted transaction occurs. If a hedged transaction is no longer 
expected to occur, the net cumulative gain or loss recognised in equity 
is transferred to net proﬁ t or loss for the period.
Provisions
Provisions for warranty costs are recognised at the date of sale of the 
relevant products, at the directors’ best estimate of the expenditure 
required to settle the group’s liability.  Provisions for restructuring 
costs are recognised when the group has a detailed formal plan for the 
restructuring that has been communicated to affected parties.
Share-based payments
The group has applied the requirements of IFRS 2 Share-based 
Payments. In accordance with the transitional provisions, IFRS 2 has 
been applied to all grants of equity instruments after 7 November 
2002 that were unvested as of 1 January 2005.
The group issues equity-settled share-based payments to certain 
employees. Equity-settled share-based payments are measured at fair 
value at the date of grant. The fair value determined at the grant date 
of the equity-settled share-based payments is expensed on a straight-
line basis over the vesting period, based on the group’s estimate of 
shares that will eventually vest.  Fair value is measured by use of 
a stochastic model. The expected life used in the model has been 
adjusted, based on management’s best estimate, for the effects of non-
transferability, exercise restrictions, and behavioural considerations.
Exceptional items
Costs are treated as exceptional items when they are associated 
with normal activities, are of a non-recurring nature and are of an 
exceptional magnitude that if they were not shown separately the 
accounts would not present a true and fair view. This includes costs 
incurred in respect of listing on the London Stock Exchange and 
costs incurred in relation to the outsourcing of all UK manufactured 
Raymarine products.
3. Revenue
An analysis of the group’s revenue is as follows: Raymarine Annual Report 2005 38
UK 
2005
£’000
UK
2004
£’000
America
2005
£’000
America
2004
£’000
Total
2005
£’000
Total
2004
£’000
Revenue
Total sales 104,580 87,927 63,037 54,832
Inter-segment sales (45,474) (36,347) (292) (144)
Sales to third parties 59,106 51,580 62,745 54,688 121,851 106,268
UK 
2005
£’000
UK
2004
£’000
America
2005
£’000
America
2004
£’000
Elim
2005
£’000
Elim
2004
£’000
Total
2005
£’000
Total
2004
£’000
Operating proﬁ t
– Pre R&D 27,862 22,815 2,071 1,170 (845) 543 29,088 24,528
– R&D charge
1
(7,423) (5,115) – – – – (7,423) (5,115)
20,439 17,700 2,071 1,170 (845) 543 21,665 19,413
– Restructuring and non-recurring costs (10,588) (8,028)
   Operating proﬁ t 11,077 11,385
   Investment income 217 572
   Finance costs (3,232) (6,700)
   Proﬁ t before tax 8,062 5,257
   Tax 305 (2,765)
   Proﬁ t after tax 8,367 2,492
For management purposes, the group currently has two geographical areas of operation – United Kingdom (UK) and America. These geographical 
areas are the basis on which the group reports its primary segment information. Segment information determined by origin is presented below.
4. Business and geographical segments
Geographical segments
Inter-segment sales are charged at prevailing market rates.
1  
R&D is highlighted separately because of the differing impact on 2005 against 2004 of applying IAS38, as explained further in the Financial 
Review set out on page 8 to 13. 39 Raymarine Annual Report 2005 
UK 
2005
£’000
UK
2004
£’000
America
2005
£’000
America
2004
£’000
Elim
2005
£’000
Elim
2004
£’000
Total
2005
£’000
Total
2004
£’000
Other information
Capital additions 7,041 8,667 687 188 7,728 8,855
Depreciation and amortisation 6,276 4,114 298 448 6,574 4,562
Impairment losses recognised in income 1,647 – – – 1,647 –
Balance sheet
Assets
Segment assets 68,703 80,591 23,867 18,705 (5,747) (5,791) 86,823 93,505
Unallocated assets 397 –
Total consolidated assets 87,220 93,505
Liabilities
Segment liabilities (24,168) (24,733) (5,598) (4,018) 3,874 2,283 (25,892) (26,468)
Unallocated liabilities (43,367) (56,523)
Total consolidated liabilities (69,259) (82,991)
Business segment
The group’s revenue is derived from one class of business, that of marine electronics.  It is not possible to disaggregate the products beyond the 
core marine electronics products as they all operate through the same markets and are considered to have the same risks and rewards associated 
with them.
4. Business and geographical segments (continued)
Geographical segments (continued) Raymarine Annual Report 2005 40
2005
£’000
2004
£’000
Redundancy costs 2,316 –
Property costs 1,094 –
Consultancy and other staff related costs 2,855 –
Impairment loss recognised in respect of ﬁ xed assets 1,647 –
Write off of IT systems 2,019 –
Transfer costs 978 –
10,909 –
2005
£’000
2004
£’000
Listing on the London Stock Exchange (321) 7,301
Change of premises – 157
New IT system – 213
Legal costs of settling a claim – 357
(321) 8,028
The 2005 credit received was in respect of a VAT refund on ﬂ otation costs incurred in 2004. Exceptional costs in 2004 comprised costs relating 
to the successful ﬂ otation on the London Stock Exchange on 6 December 2004, including £877,000 in respect of employers’ national insurance 
contributions due in respect of the gain made on the exercise of share options by UK employees, together with the cost of moving to a new head 
ofﬁ ce, costs relating to the implementation of a new IT system and the legal costs of settling a claim in the USA.
The tax effect of the exceptional items in 2004 was a credit of £648,000. A further tax credit arises in 2005 in respect of ﬂ otation matters 
(see below).
In July 2005, the group agreed to outsource the majority of its manufacturing function to Flextronics, a provider of electronics manufacturing 
services. Under the agreement, Flextronics will provide vertically integrated manufacturing services to the group, initially through its facility in 
western Hungary. To the extent that workers can not be redeployed, termination terms have been agreed and the related costs, together with the 
expected costs of exiting properties which will become vacant as part of the restructuring, and costs of transferring stocks and assets to Hungary, 
have been included in the restructuring provision established in the year (see note 22). Similarly where the carrying value of ﬁ xed assets will 
be affected as a consequence of the transfer of production, either an impairment charge has been recognised or the related assets have been 
written off (see note 14). The balance of the charge comprises incremental costs incurred in the period which are associated with the project. The 
tax effect of the restructuring costs and additional credit recognised on ﬂ otation costs in 2005 was a credit of £5,553,000, as explained further in 
note 10.
(b) Restructuring costs
5. (a) Administrative expenses – ﬂ otation and non-recurring costs 41 Raymarine Annual Report 2005 
2005
£’000
2004
£’000
Other income (see note 3) (79) –
Net foreign exchange gains (3,369) (2,526)
Research and development costs:
     Research and development costs expensed 4,813 3,972
     Amortisation of capitalised development costs 2,610 1,143
Amortisation of other intangible assets 725 765
Depreciation and other amounts written off property, plant and equipment:
     Owned 2,830 2,280
     Leased 409 374
Loss on disposal of ﬁ xed assets – 73
Rentals payable under operating leases:
     Property 1,444 1,191
     Hire of other assets 181 279
Staff costs (see note 7) 25,207 18,528
Cost of inventories recognised as an expense 51,296 45,404
Auditors’ remuneration for audit services (see below) 110 137
2005
(Deloitte & Touche LLP)
2004
(KPMG Audit Plc)
£’000 % £’000 %
Audit services:
   Statutory audit 110 24 137 16
   IFRS opening balance sheet and related audit work 35 7 ––
145 31 137 16
Tax services:
   Compliance services 42 9 ––
   Advisory services 62 13 ––
104 22 ––
Other services:
   Services connected to the listing on the London Stock Exchange 42 9 745 84
   Services connected to the outsourcing project 134 29 ––
   IFRS implementation advice 42 9 ––
218 47 745 84
A more detailed analysis of auditors’ 
remuneration on a worldwide basis is 
provided below.
6. Operating proﬁ t
Operating proﬁ t before restructuring costs is stated after charging or (crediting): Raymarine Annual Report 2005 42
2005
Number
2004
Number
Production 280 260
Research and development 111 105
Technical support 82 78
Sales and marketing 74 76
Administration 54 47
601 566
2005
£’000
2004
£’000
Their aggregate remuneration comprised:
Wages and salaries 14,057 11,427
Redundancy 2,316 –
Social security costs 1,584 1,216
Other pension costs (see note 33) 357 331
Raymarine UK Limited costs 18,314 12,974
Raymarine Inc costs 6,893 5,554
25,207 18,528
2005
£’000
2004
£’000
Interest receivable 217 286
Foreign exchange gains – 286
217 572
6. Operating proﬁ t (continued)
A description of the work of the audit committee is set out in the corporate governance statement on page 16 and includes an explanation of 
how auditor objectivity and independence is safeguarded when non-audit services are provided by the auditors.
7. Staff costs
The average monthly number of employees (including executive directors) was:
The average number of persons employed by the group includes 133 (2004: 129) at Raymarine Inc., which leased its employees from ADP Total 
Source. Pension contributions included above in the Raymarine Inc payroll costs were £373,000 (2004: £345,000).
The ﬁ gures above include the impact of the redundancy provision of £2,286,000, as detailed in note 5(b).
8. Investment income 43 Raymarine Annual Report 2005 
2005
£’000
2004
£’000
Current tax:
   UK corporation tax:
   Current year 3,088 1,602
   Adjustment recognised in period for current tax of prior periods (1,626) (315)
   Foreign tax:
   Current year 26 5
   Adjustment recognised in period for current tax of prior periods (150) –-
Current tax charge for year 1,338 1,292
Deferred tax (note 19):
   Current year (466) 1,553
   Adjustment recognised in period for current tax of prior periods (1,177) (80)
(1,643) 1,473
Total tax (credit) / charge (305) 2,765
2005
£’000
2004
£’000
Interest payable on subordinated loan stock – 4,352
Interest payable on bank loans 2,541 2,312
Interest payable on ﬁ nance leases 50 36
Total borrowing costs 2,591 6,700
Foreign exchange losses 641 –
3,232 6,700
9. Finance costs
10. Taxation
The adjusted effective rate (after adjusting proﬁ t before tax for amortisation of other intangibles of £0.7m; 2004: £0.8m) is calculated at a credit 
of 3.5% (2004: charge of 45.9%) for the year.  The charge for the year has been reduced by £5.5m for a tax credit in respect of ﬂ otation matters 
and outsourcing costs.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
On 22 November 2004, Raymarine Inc., a 100% subsidiary of Raymarine Group Plc, was migrated to be resident in the United States.  Under UK 
tax rules, there is a deemed disposal of the company’s assets for UK tax purposes on the date of emigration from the UK which gives rise to a 
held-over chargeable gain.  The gain would crystallise if Raymarine Inc. were to sell its chargeable asset (goodwill) before 22 November 2010 
or cease to be a 75% subsidiary of the group at any time.  The estimated tax charge that would arise is £4.4m. In accordance with IAS 12, no 
provision has been made for this. Raymarine Annual Report 2005 44
  2005 2004
£’000 % £’000 %
Proﬁ t before tax 8,062 5,257
Tax at the UK corporation tax rate of 30% (2004: 30%) 2,418 1,577
Tax effect of expenses that are not deductible in determining taxable proﬁ t 374 1,574
Prior year adjustments (2,953) (395)
Tax effect of utilisation of tax losses not previously recognised (120) (30)
Effect of different tax rates of subsidiaries operating in other jurisdictions (24) 39
Tax (credit) / charge and effective tax rate for the year (305) (3.8%) 2,765 52.6%
2005
£’000
2004
£’000
Amounts recognised as distributions to equity holders in the period:
Interim dividend paid in the year ended 31 December 2005 of 2p (2004: nil) per share 1,656 –
Proposed ﬁ nal dividend for the year ended 31 December 2005 of 5p (2004: nil) per share 4,140 –
10. Taxation (continued)
The (credit) / charge for the year can be reconciled to the proﬁ t per the income statement as follows:
11. Dividends
The proposed ﬁ nal dividend is subject to approval by shareholders at the Annual General Meeting and accordingly has not been included as a 
liability in these ﬁ nancial statements. 45 Raymarine Annual Report 2005 
2005
£’000
2004
£’000
Earnings
Earnings for the purposes of basic earnings per share being net proﬁ t attributable to equity shareholders of the parent 8,367 2,492
Deduct: Tax credit re ﬂ otation matters / exceptional ﬂ otation costs net of tax (315) 7,380
Add:      Exceptional restructuring costs (note 5) net of tax 5,350 –
              Amortisation of other intangible assets (note 13) 725 765
Earnings for the purposes of adjusted earnings per share 14,127 10,637
2005
Number
2004
Number
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per share 82,788,721 74,941,092
Effect of dilutive potential ordinary shares:
     Share options 4,192 5,423,532
     Convertible loan notes – 2,217,657
     Long term incentive plan 723,440 –
Weighted average number of ordinary shares for the purposes of diluted earnings per share 83,516,353 82,582,281
2005 2004
Basic EPS 10.1p 3.3p
Diluted EPS 10.0p 3.0p
12. Earnings per share
EPS (pence)
2005 2004
Basic EPS 17.1p 14.2p
Diluted EPS 16.9p 12.9p
Adjusted EPS (pence)
The calculation of the basic and diluted earnings per share is based on the following data: Raymarine Annual Report 2005 46
Goodwill
£’000
Development 
Expenditure
£’000
Other
£’000
Total
£’000
Cost
At 1 January 2004 31,050 3,605 7,865 42,520
Exchange differences (765) (77) (611) (1,453)
Additions – 4,168 – 4,168
At 1 January 2005 30,285 7,696 7,254 45,235
Exchange differences 889 – – 889
Additions – 3,627 – 3,627
At 31 December 2005 31,174 11,323 7,254 49,751
Amortisation
At 1 January 2004 – 144 2,294 2,438
Exchange differences – (12) (218) (230)
Charge for the year – 1,143 765 1,908
At 1 January 2005 – 1,275 2,841 4,116
Charge for the year – 2,610 725 3,335
At 31 December 2005 – 3,885 3,566 7,451
Net book value
At 31 December 2005 31,174 7,438 3,688 42,300
At 31 December 2004 30,285 6,421 4,413 41,119
13. Intangible ﬁ xed assets
Other intangible ﬁ xed assets comprises intellectual property (patents, licences and trademarks). 47 Raymarine Annual Report 2005 
Short 
leasehold land 
and buildings
£’000
Plant and 
machinery
£’000
Fittings 
ﬁ xtures, tools 
and equipment
£’000
Total
£’000
Cost
At 1 January  2004 1,094 5,697 17,716 24,507
Exchange differences (9) (32) (22) (63)
Additions 534 1,260 2,893 4,687
Disposals (492) (150) (849) (1,491)
At 1 January 2005 1,127 6,775 19,738 27,640
Exchange differences 15 3 222 240
Additions 351 266 3,484 4,101
Disposals and write offs (75) (258) (4,787) (5,120)
At 31 December 2005 1,418 6,786 18,657 26,861
Accumulated depreciation
At 1 January 2004 677 3,431 12,319 16,427
Exchange differences (7) 23 (76) (60)
Charge for the year 232 607 1,815 2,654
Disposals (490) (150) (778) (1,418)
At 1 January 2005 412 3,911 13,280 17,603
Exchange differences 4 – 168 172
Charge for the year 272 663 2,304 3,239
Disposals and write offs (63) (256) (2,624) (2,943)
Impairment charge 213 1,357 77 1,647
At 31 December 2005 838 5,675 13,205 19,718
Net book value
At 31 December 2005 580 1,111 5,452 7,143
At 31 December 2004 715 2,864 6,458 10,037
14. Property, plant and equipment
The carrying amount of the group’s ﬁ xtures, ﬁ ttings, tools and equipment included £816,000 (2004: £532,000) in respect of assets held under 
ﬁ nance leases. Raymarine Annual Report 2005 48
2005
£’000
2004
£’000
Raw materials and consumables 4,587 5,943
Work-in-progress 2,581 3,941
Finished goods and goods for resale 11,488 9,095
18,656 18,979
2005
£’000
2004
£’000
Trade debtors 14,272 11,993
Prepayments and accrued income 1,463 1,859
Other debtors 947 1,401
16,682 15,253
15. Inventories
16. Other ﬁ nancial assets
      Trade and other receivables
The average credit period taken on sales of goods in the UK is 58 days (2004: 58 days). In the US the credit period is 29 days (2004: 28 days).  No 
interest is charged on the receivables from date of the invoice to payment. An allowance has been made for estimated irrecoverable amounts 
from the sale of goods of £101,000 (2004: £499,000). This allowance has been determined by reference to past default experience. The directors 
consider that the carrying amount of trade and other receivables approximates their fair value.
Bank balances and cash comprise cash held by the group and short-term bank deposits with an original maturity of three months or less. The 
carrying amount of these assets approximates their fair value.
Credit risk
The group’s principal ﬁ nancial assets are bank balances and cash and trade and other receivables, which represent the group’s maximum 
exposure to credit risk in relation to ﬁ nancial assets.
The group’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances 
for doubtful receivables, estimated by the group’s management based on prior experience and their assessment of the current economic 
environment.
The credit risk on liquid funds and derivative ﬁ nancial instruments is limited because the counterparties are banks with high credit-ratings 
assigned by international credit-rating agencies.  The group has no signiﬁ cant concentration of credit risk, with exposure spread over a large 
number of counterparties and customers. 49 Raymarine Annual Report 2005 
2005
£’000
2004
£’000
Bank loans 39,965 52,762
Unamortised debt costs (347) (405)
39,618 52,357
The borrowings are repayable as follows:
In the third to ﬁ fth years inclusive 39,618 52,357
Sterling
£’000
US Dollars
£’000
Total
£’000
Analysis of borrowings by currency:
31 December 2005
Bank loans 17,958 21,660 39,618
31 December 2004
Bank loans 30,948 21,409 52,357
2005
%
2004
%
The weighted average interest rates paid were as follows:
Bank loans 5.1 9.2
2005
£’000
2004
£’000
Bank loans 39,965 52,762
17. Bank loans
Bank loans of £40.0m (2004: £52.8m) relate to a facility under a $135,000,000 syndicated revolving credit arrangement set up on 6 December 
2004.  The loan carried a charge of 70 basis points over dollar and sterling LIBOR (2004: 95 basis points) at 31 December 2005.
The directors estimate the fair value of the group’s borrowings as follows:
At 31 December 2005, the group had available £40.1m (2004: £25.3m) of undrawn committed borrowing facilities in respect of which all 
conditions precedent had been met. Raymarine Annual Report 2005 50
2005
£’000
2004
£’000
Forward foreign exchange contracts 1,849 16,128
Accelerated 
tax 
depreciation
£’000
Deferred 
development 
costs 
£’000
Other
£’000
Total
£’000
At 1 January 2004 400 1,395 (1,212) 583
Charge to income 395 908 170 1,473
Exchange differences (63) (33) 86 (10)
At 1 January 2005 732 2,270 (956) 2,046
(Credit) / charge to income (1,662) (43) 62 (1,643)
Charge to equity – – 113 113
Exchange differences 17 – (91) (74)
At 31 December 2005 (913) 2,227 (872) 442
2005
£’000
2004
£’000
Deferred tax liabilities 1,067 2,800
Deferred tax assets (625) (754)
442 2,046
18. Derivative ﬁ nancial instruments
The group utilises currency derivatives to hedge signiﬁ cant future transactions and cash ﬂ ows. At 31 December 2005, the group is party to 
two foreign currency forward contracts in the management of its exchange rate exposures. The instruments are denominated in US dollars, the 
currency of the group’s principal foreign market. 
As at 31 December 2005, the total notional amount of outstanding forward foreign exchange contracts that the group has committed to are 
shown below:
These arrangements are designed to address signiﬁ cant exchange exposures for the ﬁ rst quarter of 2006 and may be renewed on a revolving 
basis as required.
At 31 December 2005, the fair value of the group’s currency derivatives is estimated to be approximately £0.4m (2004: £3.8m). These amounts 
are based on quoted market values of equivalent instruments at the balance sheet date. The fair value of currency derivatives that are designated 
and effective as cash ﬂ ow hedges, amounting to £0.4m (2004: £3.8m), has been deferred in equity.
£2.8m has been transferred to the income statement in respect of foreign currency forward contracts that have matured during the period.
Hedge of net investment in foreign entity
The group has US dollar denominated borrowings which it has designated as a hedge of the net investment in its subsidiary in the USA. The fair 
value of the dollar borrowings hedging the net investment as at 31 December 2005, was £3.6m (2004: £3.2m). Foreign exchange losses of £0.2m 
(2004: gain of £0.1m) on translation of the borrowings into pounds sterling have been recognised in exchange reserves.
19. Deferred tax
The following are the major deferred tax liabilities and assets 
recognised by the group and movements thereon during the 
current and prior reporting period.
Certain deferred tax assets and liabilities have been offset. The following is the analysis of the deferred 
tax balances (after offset) for ﬁ nancial reporting purposes: 51 Raymarine Annual Report 2005 
Minimum lease payments Present value of lease payments
2005
£’000
2004
£’000
2005
£’000
2004
£’000
Amounts payable under ﬁ nance leases:
Within one year 394 348 367 359
In the second to ﬁ fth years inclusive 495 250 450 174
889 598 817 533
Less: future ﬁ nance charges (72) (65) n/a n/a
Present value of lease obligations 817 533
Less:
Amount due for settlement within 12 months (shown under current liabilities) (367) (359)
Amount due for settlement after 12 months 450 174
2005
£’000
2004
£’000
Trade creditors 10,378 10,850
Accruals and deferred income 6,169 11,038
16,547 21,888
20. Obligations under ﬁ nance leases
21. Other ﬁ nancial liabilities
Trade and other payables
Trade creditors comprises amounts outstanding for trade purchases and ongoing costs. The average credit period taken for trade purchases 
is 38 days (2004: 40 days). 
The directors consider that the carrying amount of trade and other payables approximates to their fair value.
Leases are classiﬁ ed as ﬁ nance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. 
The average lease term, weighted by asset cost, is 41 months.
The effective interest rate is 5.5% (2004: 4.2%).
The group has ﬁ nance leases denominated in Pounds Sterling and US Dollars. The fair value of the group’s lease obligations approximates their 
carrying amount. The group’s obligations under ﬁ nance leases are secured by the lessors’ charges over the leased assets. Raymarine Annual Report 2005 52
Warranty 
provision
£’000
Restructuring 
provision
£’000
Total
£’000
At 1 January 2005 4,580 – 4,580
Exchange difference 53–53
Additional provision in the year 4,960 3,845 8,805
Utilisation of provision (3,855) (238) (4,093)
At 31 December 2005 5,738 3,607 9,345
Included in current liabilities 5,720
Included in non-current liabilities 3,625
9,345
2005
£’000
2004
£’000
Authorised:
Equity: 1,000,000,000 (2004: 1,000,000,000) ordinary shares of £0.01 each 10,000 10,000
Issued and fully paid:
Equity: 82,790,317 (2004: 82,771,522) ordinary shares of £0.01 each 828 828
Number £’000
At the beginning of the year 82,771,522 828
Allotment of shares to UK share incentive plan and US share incentive plan 18,795 –
Balance at 31 December 2005 82,790,317 828
22. Provisions
The warranty provision reﬂ ects the best estimate of future claims under product warranties, which are given to the end user for two to three 
years from date of sale.
The restructuring provision established in the year relates to the implementation of outsourcing manufacturing to Flextronics in Hungary. The 
provision reﬂ ects expected severance payments, retention bonuses and outplacement costs totalling £2.5m that are anticipated to be paid in 
2006 apart from a small residual payment of approximately £0.3m in 2007. The remaining £1.1m reﬂ ects anticipated property costs associated 
with cessation of manufacturing at our Anchorage Park facility. These costs are anticipated to be incurred in 2007.
23. Share capital
Changes in the issued share capital during the year were as follows:
The company has one class of ordinary shares which carry no right to ﬁ xed income. 53 Raymarine Annual Report 2005 
Share premium 
£’000
Balance at 1 January 2005 3,166
Premium arising on issue of equity shares 41
Balance at 31 December 2005 3,207
Equity reserve 
£’000
Balance at 1 January 2005 –
Awards under Long Term Incentive Plan 126
Share Option Plan 29
Balance at 31 December 2005 155
Hedging 
reserve
£’000
Translation 
reserve
£’000
Total
£’000
Balance at 1 January 2004 – – –
Exchange differences on translation of overseas operations – (413) (413)
Balance at 1 January 2005 – (413) (413)
Exchange differences on translation of foreign currency operations – 348 348
Transfer of the initial carrying amount of hedged items on cash ﬂ ow hedges 3,828 – 3,828
Transfer to income on cash ﬂ ow hedges (2,779) – (2,779)
Exchange losses on hedging derivatives maturing during the year (668) – (668)
Related deferred tax on above items (114) – (114)
Balance at 31 December 2005 267 (65) 202
24. Share premium account
25. Equity reserve
During the year, the group entered into a Long Term Incentive Plan (LTIP) for some of its staff. The plan is being accounted for as an equity settled 
scheme and operates over the next three years with any award being linked to performance related targets which reﬂ ect the group’s performance 
during the period. The maximum award under the scheme is 1,064,740 shares. A charge to the income statement of £137k arises in the year.
26. Hedging and translation reserves
The hedging reserve reﬂ ects the fair value of the unrealised exchange gains and losses on unmatured foreign exchange contracts at the year 
end. The cumulative currency translation adjustment for the group is held in the translation reserve and both reserves are considered to be 
undistributable. Raymarine Annual Report 2005 54
£’000
Balance at 1 January 2004 4,177
Net proﬁ t for the year 2,492
Transactions with equity holders 264
Balance at 1 January 2005 6,933
Net proﬁ t for the year 8,367
Dividends paid (1,656)
Other adjustments (75)
Balance at 31 December 2005 13,569
2005
£’000
2004
£’000
Total recognised income and expense for the year 7,251 2,079
Increase in equity reserve 155 –
Transactions with equity holders – 834
Increase in share capital and premium 41 569
7,447 3,482
Equity shareholders’ funds brought forward 10,514 7,032
Equity shareholders’ funds carried forward 17,961 10,514
27. Retained earnings
28. Consolidated statement of changes in equity 55 Raymarine Annual Report 2005 
2005
£’000
2004
£’000
Operating proﬁ t 11,077 11,385
Adjustments for:
     Foreign exchange 69 2,287
     Depreciation of property, plant and equipment 3,239 2,576
     Impairment loss on ﬁ xtures and equipment 1,647 –
     Amortisation of intangible assets 3,335 1,908
     Loss on disposal of property, plant and equipment 2,017 73
     Increase in provisions 4,711 –
Operating cash ﬂ ows before movements in working capital 26,095 18,229
     Decrease / (increase) in inventories 994 (8,807)
     Increase in receivables (809) (3,518)
     (Decrease) / increase in payables (4,457) 11,065
Cash generated by operations 21,823 16,969
Interest received 216 286
Interest paid (3,969) (6,151)
Foreign exchange (641) 286
Tax received / (paid) 201 (1,000)
Net cash from operating activities 17,630 10,390
2005
£’000
2004
£’000
Within one year 1,703 1,619
In the second to ﬁ fth years inclusive 4,732 5,913
After ﬁ ve years 1,974 2,658
8,409 10,190
29. Notes to the cash ﬂ ow statement
Additions to ﬁ xtures and equipment during the year amounting to £0.7m were ﬁ nanced by new ﬁ nance leases. 
Cash and cash equivalents (which are presented as a single class of assets on the face of the balance sheet) comprise cash at bank and other 
short-term highly liquid investments with a maturity of three months or less.
30. Contingent liabilities
Upon signature of the outsourcing agreement with Flextronics Raymarine received proceeds for the sale of existing production and test 
equipment totalling £1.4m, the underlying proceeds being a dollar denominated payment of $2.5m. Under the terms of the agreement, upon 
termination Raymarine becomes liable for a pro-rata repayment of the £1.4m on return of the assets sold. At the balance sheet date 5 months of 
the 60 month initial period had expired leaving a contingency liability of £1.3m.
31. Operating lease arrangements
At the balance sheet date, the group had outstanding commitments for future minimum lease 
payments under non-cancellable operating leases, which fall due as follows:
Operating lease payments represent rentals payable by the group for the entire duration of the lease for certain of its cars, properties and vending 
machines. Average lease terms, at ﬁ xed rates, for cars and vending equipment are 41 months and 48 months respectively.  The average lease term 
for properties is 101 months. Operating lease payments for some of the properties are subject to a rent review. Raymarine Annual Report 2005 56
Share Options LTIP
Options
Weighted 
average 
exercise price 
(in £)
Maximum 
number of 
shares
Weighted 
average fair 
value per 
shares (in £)
Outstanding at beginning of period ––– –
Granted during the period 150,000 2.27 1,064,740 1.14
Outstanding at the end of the period 150,000 2.27 1,064,740 1.14
Share 
options
LTIP
Weighted average share price 2.45 N/A
Weighted average exercise price 2.27 N/A
Weighted average fair value per share N/A 1.14
Expected volatility 25% 26%
Expected life 5 years 3 years
Risk-free rate 4.27% 4.5%
Expected dividend yield 2.64% 3%
32. Share based payments
Expected volatility was determined by calculating the historical volatility of the group’s share price from the date of listing, 6 December 2004, to 
the date of the grant. The expected life used in the model is management’s best estimate allowing for the effects of non-transferability, exercise 
restrictions, and behavioural considerations.
Long term incentive plan
During the year the group entered into a Long Term Incentive Plan for some of its staff.  The plan is being accounted for as an equity settled 
scheme and operates over the next three years with any award being linked to performance related targets which reﬂ ect the group’s performance 
during the period.  The maximum award under the scheme is 1,064,740 shares.  A charge to the income statement of £137k was made during the 
period.
Equity-settled share option plan
The company has issued share options to a single member of senior management. Options are exercisable at a price equal to the quoted market 
price of the company’s shares on the date of the grant. The vesting period is 3 years. If the options remain unexercised after a period of 10 years 
from the date of the grant, the options expire. Options are forfeited if the employee leaves the group before the options vest.  The charge to the 
income statement in respect of the option is £40k.
33. Retirement beneﬁ t schemes
Deﬁ ned contribution scheme
The group operates a deﬁ ned contribution pension scheme for Raymarine UK Limited. The assets of the scheme are held separately from those of 
the group in funds under the control of trustees. Where there are employees who leave the scheme prior to vesting fully in the contributions, the 
contributions payable by the group are reduced by the amount of forfeited contributions.
The cost charged to income in respect of this pension scheme, of £357,000 (2004: £331,000), represents contributions payable to the scheme by 
the group at rates speciﬁ ed in the rules of the plan. As at 31 December 2005, contributions of £nil (2004: £49,000) due in respect of the current 
reporting period had not been paid over to the scheme and are included in creditors.
The group leased its Raymarine Inc. employees from ADP TotalSource during the entire year of 2005.  ADP TotalSource operates a deﬁ ned 
contribution scheme. 
The options outstanding at 31 December 2005 had a weighted average exercise price of £2.27 and a weighted average remaining contractual life 
of 5 years.
The inputs into the Black-Scholes model are as follows: 57 Raymarine Annual Report 2005 
The cost charged to income in respect of the scheme operated by ADP , of £373,000 (2004: £345,000) represents contributions payable to various 
funds by the group at rates speciﬁ ed in the rules of the plans. As at 31 December 2005, contributions of £74,000 (2004: £64,000) due in respect 
of the current reporting period had not been paid over to the scheme and are included in creditors.
34. Events after the balance sheet date
There were no signiﬁ cant events after the balance sheet date.  
35. Related party transactions
Transactions between the company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in 
this note.  
Remuneration of key management personnel
Details of the remuneration of the directors, who are the key management personnel of the group, is provided in aggregate for each of the 
categories speciﬁ ed in IAS 24 Related Party Disclosures in the audited part of the Directors’ Remuneration Report on pages 20 to 23, along with 
further information about the remuneration of individual directors.
36. Explanation of transition to IFRS
This is the ﬁ rst year that the company has presented its ﬁ nancial statements under IFRS.  The following disclosures are required in the year of 
transition. The last ﬁ nancial statements under UK GAAP were for the year ended 31 December 2004 and the date of transition to IFRS was 
therefore 1 January 2004.
The group has applied IFRS 1 ‘First Time Adoption of International Financial Reporting Standards’ as a starting point for reporting under IFRS. The 
group’s date of transition to IFRS is 1 January 2004 and comparative information has been restated to reﬂ ect the group’s adoption of IFRS except 
where otherwise required or permitted by IFRS 1. 
IFRS 1 requires an entity to comply with each IFRS and IAS effective at the reporting date for its ﬁ rst ﬁ nancial statements prepared under IFRS. As 
a general rule, IFRS 1 requires such standards to be applied retrospectively. However, the standard allows several optional exemptions from full 
retrospective application. The group has elected to take advantage of the following exemptions:
• The group has elected to take advantage of the exemption in IFRS 1 regarding translation differences. Accordingly the cumulative translation 
differences for its overseas operations are deemed to be nil at the date of transition to IFRS;
• The group has elected to apply the exemptions in IAS 32 ‘Financial Instruments: Disclosure and Presentation’ and IAS 39 ‘Financial Instruments: 
Recognition and Measurement’ to apply these standards from 1 January 2005 only; and
• The group has elected to take advantage of the exemptions allowed in IFRS 1 regarding IFRS 2 ‘Share based payments’. The group has applied 
the exemptions for share based payments granted on or before 7 November 2002. This means that only equity instruments granted after 7 
November 2002 that vested after the effective date of IFRS 2 on 1 January 2005 have been valued. 
The reconciliations of equity at 1 January 2004 (date of transition to IFRS) and at 31 December 2004 (date of last UK GAAP ﬁ nancial statements), 
and at 31 December 2005, and the reconciliation of proﬁ t for 2004 and 2005, as required by IFRS 1, are given below.
References to UK GAAP for the year ended 31 December 2004, as opposed to 31 December 2005, are to the group’s policies as applied in its 
ﬁ nancial statements for the year ended 31 December 2004.
Signiﬁ cant changes to previously reported UK GAAP ﬁ gures have been made in the following areas to comply with IFRS:
A. IAS 38 – Intangible assets
IAS 38 requires the group to capitalise and amortise those development costs which comply with the guidelines laid out in IAS 38. The effect of 
the transition to IFRS in 2004 and 2005 has been to reverse out those development costs, which comply and had previously been expensed to the 
income statement, and then to capitalise them on the balance sheet and amortise them over a period of three years.  
As some of this expenditure arises in the US there is a currency effect. Raymarine Annual Report 2005 58
1 January
2004
£’000
31 December
2004
£’000
31 December
2005
£’000
Development costs capitalised at beginning of period 3,660 3,605 7,696
Development costs capitalised in period – 4,168 3,627
Exchange differences (55) (77) –
3,605 7,696 11,323
Depreciation at beginning of period (146) (144) (1,275)
Depreciation in the period – (1,143) (2,610)
Exchange differences 212 –
(144) (1,275) (3,885)
Effect of transition to IFRS on intangible ﬁ xed assets 3,461 6,421 7,438
Effect of transition to IFRS on proﬁ t before tax – 3,025 1,017
36. Explanation of transition to IFRS (continued)
      A. IAS 38 – Intangible assets (continued)
B. IAS 38 - Goodwill
IAS 38 also requires goodwill to be frozen as at the date of transition to IFRS, 1 January 2004, and to be subject to review for impairment rather 
than regular amortisation. As part of the group’s goodwill is denominated in US$, exchange differences arise at each period end.  The previously 
amortised amount for the year ended December 2005 of £1.8m (2004: £1.8m) has been reversed in the transition to IFRS in the income 
statement.  The effect of the transition, after accounting for foreign exchange, on the balance sheet at December 2005 was £3.6m (2004: £1.7m).
C. IAS 32 and 39 – Financial instruments 
The group discloses from 1 January 2004 onwards the cumulative currency translation adjustment as part of its ‘hedging and translation reserve’.  
The cumulative currency translation adjustment for 31 December 2005 was £0.1m (2004: £0.4m) and has been credited to this reserve from the 
retained earnings reserve.
The group has elected to apply the exemptions in IAS 32 ‘Financial Instruments: Disclosure and Presentation’ and IAS 39 ‘Financial Instruments: 
Recognition and Measurement’ to apply these standards from 1 January 2005 only.
D. IAS 19 – Employee beneﬁ ts
The standard covers all forms of employee beneﬁ ts but the only impact for the group is in respect of holiday pay. Under IAS 19 the group now 
accrues in the UK for holiday pay due to its employees, but not taken by the balance sheet date.  Typically this accrual is not necessary at the year 
end as all holiday is usually taken by this time. Therefore no charge arises for the year ended 31 December 2005 (2004: £nil). 59 Raymarine Annual Report 2005 
1 January
2004
£’000
31 December
2004
£’000
31 December
2005
£’000
Write-back of operating lease cost 568 398 447
Depreciation of capitalised leased asset (530) (362) (398)
Effect of transition to IFRS on operating proﬁ t 38 36 49
Interest (38) (36) (49)
Effect of transition on proﬁ t before tax – – –
Costs capitalised in tangible ﬁ xed assets 989 1,333 1,536
Depreciation (496) (822) (730)
Effect on tangible ﬁ xed assets 493 511 806
Finance lease liability (493) (511) (806)
36. Explanation of transition to IFRS (continued)
E. IAS 17 – Leases 
Operating leases have been reviewed under IAS 17 and have been re-designated as ﬁ nance leases where they meet the deﬁ nition given in the 
standard.  Therefore operating lease costs of £447k in the year ended December 2005 (2004: £398k) have been reversed and replaced with 
depreciation charges of £398k (2004: £362k) and ﬁ nance costs of £49k (2004: £36k). The effect on the balance sheet has been to increase 
tangible ﬁ xed assets and ﬁ nance lease liabilities by an equal and opposite amount. At 31 December 2005 the NBV of leased assets under IFRS 
was £806k (2004: £511k) and ﬁ nance lease liabilities were £806k (2004: £511k).
As some of the leases are entered into in the US there is a currency effect.
F. IAS 12 – Income taxes
This standard requires entities to account for deferred taxation based on temporary differences between the carrying amount of assets/liabilities 
and their tax base. Consequently the group has made additional provision for deferred tax on R&D, tax-deductible goodwill and ﬁ nancial 
instruments. Raymarine Annual Report 2005 60
As at 1 January 2004 As at 31 December 2004
UK GAAP
£’000
Effect of 
transition 
to IFRS
£’000
IFRS
£’000
UK GAAP
£’000
Effect of 
transition 
to IFRS
£’000
IFRS
£’000
Note:
Non-current assets
B Goodwill 31,050 – 31,050 28,576 1.709 30,285
A Other intangible assets 5,571 3,461 9,032 4,413 6,421 10,834
E Property, plant and equipment 7,587 493 8,080 9,526 511 10,037
F Deferred tax assets 812 (812) – 372 (372) –
45,020 3,142 48,162 42,887 8, 269 51,156
Current assets
Inventories 11,030 – 11,030 18,979 – 18,979
Trade and other receivables 12,724 – 12,724 15,253 – 15,253
Cash and cash equivalents 11,671 – 11,671 8,117 – 8,117
35,425 – 35,425 42,349 – 42,349
Current liabilities
Trade and other payables 11,505 – 11,505 21,888 – 21,888
Tax liabilities 840 – 840 1,587 – 1,587
E Obligations under ﬁ nance leases 15 366 381 12 347 359
Bank overdrafts and loans 2,980 – 2,980 – – –
Short-term provisions 2,762 – 2,762 2,272 – 2,272
18,102 366 18,468 25,759 347 26,106
Net current assets 17,323 (366) 16,957 16,590 (347) 16,243
Non-current liabilities
Bank loans 55,216 – 55,216 52,357 – 52,357
F Deferred tax liabilities – 242 242 – 2,046 2,046
Long-term provisions 2,477 – 2,477 2,308 – 2,308
E Obligations under ﬁ nance leases 25 127 152 10 164 174
57,718 369 58,087 54,675 2,210 56,885
Net assets 4,625 2,407 7,032 4,802 5,712 10,514
Equity
Share capital 1 – 1 828 – 828
Share premium 3,424 – 3,424 3,166 – 3,166
Other reserves (570) – (570) – – –
C Hedging and translation reserves – – – – (413) (413)
A B E F Retained earnings 1,770 2,407 4,177 808 6,125 6,933
Equity shareholders’ funds 4,625 2,407 7,032 4,802 5,712 10,514
36. Explanation of transition to IFRS (continued)
 Reconciliation of equity at 1 January 2004 and 31 December 2004 61 Raymarine Annual Report 2005 
UK GAAP
£’000
Effect of 
transition to 
IFRS
£’000
IFRS
£’000
Note
Revenue 106,268 – 106,268
Cost of sales (66,288) – (66,288)
Gross proﬁ t 39,980 – 39,980
Distribution costs (8,992) – (8,992)
Administrative expenses:
A – Research and development (8,140) 3,025 (5,115)
E – Other administrative expenses (8,722) 36 (8,686)
B – Goodwill and other intangibles (2,568) 1,803 (765)
– Flotation and other non-recurring costs (8,028) – (8,028)
(27,458) 4,864 (22,594)
Other operating income – foreign exchange gains 2,991 – 2,991
Operating proﬁ t 6,521 4,864 11,385
Investment income 572 – 572
E Finance costs (6,664) (36) (6,700)
Proﬁ t before tax 429 4,828 5,257
F Taxation (1,706) (1,059) (2,765)
(Loss) / proﬁ t for the period (1,277) 3,769 2,492
Basic (loss) / earnings per share (pence) (1.7p) 5.0p 3.3p
Diluted (loss) / earnings per share (pence) (1.5p) 4.5p 3.0p
£’000
UK GAAP adjusted earnings per share
Earnings for the purposes of basic earnings per share being net proﬁ t attributable to equity shareholders of the parent (1,277)
Add:  Exceptional ﬂ otation costs net of tax 7,380
         Amortisation of other intangible assets 2,568
Earnings for the purposes of adjusted earnings per share 8,671
Weighted average number of shares for basic calculations (see note 12) 74,941,092
Weighted average number of shares for diluted calculations (see note 12) 82,582,281
Adjusted basic earnings per share 11.6p
Adjusted diluted earnings per share 10.5p
36. Explanation of transition to IFRS (continued)
 Reconciliation of proﬁ t or loss for 2004 Raymarine Annual Report 2005 62
For the year ended 31 December 2004
UK GAAP
£’000
Effect of 
transition to 
IFRS
£’000
IFRS
£’000
Notes:
Cash ﬂ ow from operating activities i, ii 5,938 4,452 10,390
Cash ﬂ ow from investing activities i (4,293) (4,168) (8,461)
Cash ﬂ ow from ﬁ nancing activities ii (4,292) (284) (4,576)
Net decrease in cash and cash equivalents (2,647) – (2,647)
Cash and cash equivalents at beginning of period 11,671 – 11,671
Effect of changes in foreign exchange rates (907) – (907)
Cash and cash equivalents at end of period 8,117 – 8,117
1 January
2004
£’000
31 December
2004
£’000
Cash and cash equivalent consists of:
Cash and cash equivalents 11,671 8,117
36. Explanation of transition to IFRS (continued)
 Effect of IFRS adoption for the cash ﬂ ow statement
The effect of IFRS on the cash ﬂ ow from operating activities reﬂ ects the following elements of the transition to IFRS.
i. the capitalising of eligible research and development costs incurred during the period (£4.2m) which instead of being shown as an operating 
activity outﬂ ow, is now shown as a cash outﬂ ow from investing activities.
 
ii. the capital repayments of certain operating leases have been re-designated as ﬁ nance leases.  The effect of this is to show the outﬂ ow as a 
ﬁ nancing cash outﬂ ow instead of an operating cash outﬂ ow (£0.3m). 63 Raymarine Annual Report 2005 
UK GAAP
#
£’000
Effect of 
transition to 
IFRS
£’000
IFRS
£’000
Note
Revenue 121,851 – 121,851
Cost of sales (76,090) – (76,090)
Gross proﬁ t 45,761 – 45,761
Distribution costs (9,314) – (9,314)
Administrative expenses:
A – Research and development (8,440) 1,017 (7,423)
E – Other administrative expenses (9,513) 49 (9,464)
B – Goodwill and other intangibles (2,525) 1,800 (725)
– Exceptional items (10,588) – (10,588)
(31,066) 2,866 (28,200)
Other operating income - foreign exchange gains 2,830 – 2,830
Operating proﬁ t 8,211 2,866 11,077
Investment income 217 – 217
E Finance costs (3,183) (49) (3,232)
Proﬁ t before tax 5,245 2,817 8,062
F Taxation 412 (107) 305
Proﬁ t for the period 5,657 2,710 8,367
Basic earnings per share (pence) 6.8p 3.3p 10.1p
Diluted earnings per share (pence) 6.8p 3.2p 10.0p
£’000
UK GAAP
#
 adjusted earnings per share
Earnings for the purposes of basic earnings per share being net proﬁ t attributable to equity shareholders of the parent 5,657
Deduct: Tax credit re ﬂ otation matters (315)
Add: Exceptional restructuring costs net of tax 5,350
         Amortisation of other intangible assets 2,524
Earnings for the purposes of adjusted earnings per share 13,216
Weighted average number of shares for basic calculations (see note 12) 82,788,721
Weighted average number of shares for diluted calculations (see note 12) 83,516,353
Adjusted basic earnings per share 16.0p
Adjusted diluted earnings per share 15.8p
# References to UK GAAP reﬂ ect the group’s accounting policies as at 31 December 2004, supplemented in the case of 2005, by the adoption of Financial Reporting Standards 20 to 26 
to the extent that they are applicable to the group.
36. Explanation of transition to IFRS (continued)
 Reconciliation of proﬁ t in 2005 Raymarine Annual Report 2005 64
As at 31 December 2005
UK GAAP
#
£’000
Effect of 
transition to 
IFRS
£’000
IFRS
£’000
Note
Non-current assets
B Goodwill 27,584 3,590 31,174
A Other intangible assets 3,688 7,438 11,126
E Property, plant and equipment 6,337 806 7,143
Financial asset 16 – 16
F Deferred tax assets 2,110 (2,110) –
39,735 9,724 49,459
Current assets
Inventories 18,656 – 18,656
Trade and other receivables 16,682 – 16,682
Financial assets 381 – 381
Cash and cash equivalents 2,042 – 2,042
37,761 – 37,761
Current liabilities
Trade and other payables 20,687 (4,140) 16,547
Tax liabilities 2,474 – 2,474
E Obligations under ﬁ nance leases 11 356 367
Short-term provisions 5,720 – 5,720
28,892 (3,784) 25,108
Net current assets 8,869 3,784 12,653
Non-current liabilities
Bank loans 39,618 – 39,618
Financial liability 16 – 16
F Deferred tax liabilities – 442 442
Long-term provisions 3,625 – 3,625
E Obligations under ﬁ nance leases – 450 450
43,259 892 44,151
Net assets 5,345 12,616 17,961
Equity
Share capital 828 – 828
Share premium 3,207 – 3,207
Equity reserves 155 – 155
C Hedging and translation reserves 267 (65) 202
A B E F Retained earnings 888 12,681 13,569
Equity shareholders’ funds 5,345 12,616 17,961
36. Explanation of transition to IFRS (continued)
 Reconciliation of equity at 31 December 2005
# References to UK GAAP reﬂ ect the group’s accounting policies as at 31 December 2004, supplemented in the case of 2005, by the adoption of Financial Reporting Standards 20 to 26 
to the extent that they are applicable to the group. 65 Raymarine Annual Report 2005 
Independent Auditors’ Report to the  members of Raymarine plc
We have audited the individual company ﬁ nancial statements (the 
“ﬁ nancial statements”) of Raymarine plc for the year ended 31 
December 2005 which comprise the income statement, the balance 
sheet and the cash ﬂ ow statement, the statement of accounting policies 
and the related notes 37 to 50. These ﬁ nancial statements have been 
prepared under the accounting policies set out therein.  We have also 
audited the information in the directors’ remuneration report that is 
described as having been audited. 
We have reported separately on the group ﬁ nancial statements of 
Raymarine plc for the year ended 31 December 2005.
This report is made solely to the company’s members, as a body, in 
accordance with section 235 of the Companies Act 1985.  Our audit 
work has been undertaken so that we might state to the company’s 
members those matters we are required to state to them in an auditors’ 
report and for no other purpose.  To the fullest extent permitted by law, 
we do not accept or assume responsibility to anyone other than the 
company and the company’s members as a body, for our audit work, for 
this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the annual report, the 
directors’ remuneration report and the ﬁ nancial statements in 
accordance with applicable United Kingdom law and International 
Financial Reporting Standards (IFRSs) as adopted for use in 
the European Union are set out in the statement of directors’ 
responsibilities.
Our responsibility is to audit the ﬁ nancial statements and the part of the 
directors’ remuneration report described as having been to be audited 
in accordance with relevant United Kingdom legal and regulatory 
requirements and International Standards on Auditing (UK and Ireland). 
We report to you our opinion as to whether the ﬁ nancial statements 
give a true and fair view in accordance with the relevant framework 
and whether the ﬁ nancial statements and the part of the directors’ 
remuneration report described as having been audited have been 
properly prepared in accordance with the Companies Act 1985. We 
report to you if, in our opinion, the directors’ report is not consistent 
with the ﬁ nancial statements.  We also report to you if the company 
has not kept proper accounting records, if we have not received all the 
information and explanations we require for our audit, or if information 
speciﬁ ed by law regarding directors’ remuneration and transactions with 
the company is not disclosed.
We also report to you if, in our opinion, the company has not complied 
with any of the four directors’ remuneration disclosure requirements 
speciﬁ ed for our review by the Listing Rules of the Financial Services 
Authority.  These comprise the amount of each element in the 
remuneration package and information on share options, details of 
long term incentive schemes, and money purchase and deﬁ ned beneﬁ t 
schemes.  We give a statement, to the extent possible, of details of any 
non-compliance.
We review whether the corporate governance statement reﬂ ects 
the company’s compliance with the nine provisions of the 2003 FRC 
Combined Code speciﬁ ed for our review by the Listing Rules of the 
Financial Services Authority, and we report if it does not. We are not 
required to consider whether the board’s statements on internal control 
cover all risks and controls, or form an opinion on the effectiveness of 
the company’s corporate governance procedures or its risk and control 
procedures.
We read the directors’ report and the other information contained in the 
annual report for the above year as described in the contents section 
including the unaudited part of the directors’ remuneration report and 
consider the implications for our report if we become aware of any 
apparent misstatements or material inconsistencies with the ﬁ nancial 
statements. 
Basis of audit opinion
We conducted our audit in accordance with International Standards on 
Auditing (UK and Ireland) issued by the Auditing Practices Board. An 
audit includes examination, on a test basis, of evidence relevant to the 
amounts and disclosures in the ﬁ nancial statements and the part of the 
directors’ remuneration report described as having been audited. It also 
includes an assessment of the signiﬁ cant estimates and judgements 
made by the directors in the preparation of the ﬁ nancial statements, and 
of whether the accounting policies are appropriate to the company’s 
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information 
and explanations which we considered necessary in order to provide us 
with sufﬁ cient evidence to give reasonable assurance that the ﬁ nancial 
statements and the part of the directors’ remuneration report described 
as having been audited are free from material misstatement, whether 
caused by fraud or other irregularity or error. In forming our opinion we 
also evaluated the overall adequacy of the presentation of information 
in the ﬁ nancial statements and the part of the directors’ remuneration 
report described as having been audited.
Opinion
In our opinion:
• the ﬁ nancial statements give a true and fair view, in accordance with 
IFRS as adopted for use in the European Union, of the state of the 
company's affairs as at 31 December 2005 and of its proﬁ t for the 
year then ended; and
• the ﬁ nancial statements and the part of the directors’ remuneration 
report described as having been audited have been properly prepared 
in accordance with the Companies Act 1985.
Separate opinion in relation to IFRS
As explained in Note 2, the company, in addition to complying with 
its legal obligation to comply with IFRSs as adopted for use in the 
European Union, has also complied with the IFRSs as issued by the 
International Accounting Standards Board.  Accordingly, in our opinion 
the ﬁ nancial statements give a true and fair view, in accordance with 
IFRSs, of the state of the company’s affairs as at 31 December 2005 and 
of its proﬁ t for the year then ended.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors
Southampton
27 February 2006 Raymarine Annual Report 2005 66
2005
£’000
2004
£’000
Note
Administrative expenses:
     – Other administrative expenses (632) (297)
     – Flotation and non-recurring costs 26 (6,358)
Operating loss 38 (606) (6,655)
Investment income 40 7,591 8,494
Finance costs 41 (244) (21)
Proﬁ t before tax 6,741 1,818
Taxation 42 2,226 580
Proﬁ t for the year attributable to equity shareholders to the company 47 8,967 2,398
2005
£’000
2004
£’000
Note
Non-current assets
Intangible assets 43 274 274
Current assets
Trade and other receivables 27 2
Amounts owed by group undertakings 10,506 10,585
Current tax assets 2,816 614
Cash and cash equivalents 45 202 154
13,551 11,355
Current liabilities
Trade and other payables 46 239 2,179
Amounts owed to group undertakings 282 3,599
521 5,778
Net current assets 13,030 5,577
Net assets 13,304 5,851
Equity
Share capital 23 828 828
Share premium account 24 3,207 3,166
Equity reserve 155 –
Hedging and translation reserve (405) (406)
Retained earnings 47 9,519 2,263
Equity attributable to equity shareholders to the company 13,304 5,851
Company income statement
Year ended 31 December 2005
Company balance sheet
At 31 December 2005
The ﬁ nancial statements were approved by the Board of Directors and authorised for issue on 27 February 2006.  They were signed on its behalf by: 
Malcolm Miller
(Chief Executive Ofﬁ cer) 67 Raymarine Annual Report 2005 
2005
£’000
2004
£’000
Note
Net cash from operating activities 49 (2,632) (4,448)
Investing activities
Dividends received 7,516 8,492
Net cash from investing activities 7,516 8,492
Financing activities
Issue of ordinary shares 42 1,914
Repurchase of share capital – (1,250)
Increase in intercompany loans (3,354) (8,778)
Repayments of intercompany borrowings 90 4,244
Dividends paid (1,656) –
Net cash used in ﬁ nancing activities (4,878) (3,870)
Net increase in cash and cash equivalents 6 174
Cash and cash equivalents at beginning of year 154 –
Effect of foreign exchange rate changes 42 (20)
Cash and cash equivalents at end of year 202 154
Company cash fl ow statement
Year ended 31 December 2005
37. Signiﬁ cant accounting policies
The separate ﬁ nancial statements of the company are presented as required by the Companies Act 1985.  As permitted by that Act, the separate 
ﬁ nancial statements have been prepared in accordance with International Financial Reporting Standards.
The ﬁ nancial statements have been prepared on the historical cost basis. The principal accounting policies adopted are the same as those set out 
in note 2 to the consolidated ﬁ nancial statements except as noted below.
Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment.
Notes to the fi nancial statements
Year ended 31 December 2005 Raymarine Annual Report 2005 68
2005
£’000
2004
£’000
Operating loss is stated after charging:
Net foreign exchange losses – 119
Auditors’ remuneration for audit services (see below) 16 14
2005
(Deloitte & Touche LLP)
2004
(KPMG Audit Plc)
£’000 % £’000 %
Audit services:
     Statutory audit 16 5 14 2
16 5 14 2
Other services:
     Services connected to the listing on the London Stock Exchange 42 13 723 95
     Other services 256 82 23 3
298 95 746 98
314 100 760 100
A description of the work of the audit committee is set out in the corporate governance statement on page 16 and includes an explanation of 
how auditor objectivity and independence is safeguarded when non-audit services are provided by the auditors.
A more detailed analysis of auditors’ remuneration on a 
worldwide basis is provided below.
2005
£’000
2004
£’000
Dividends received 7,516 8,492
Interest received 10 2
Foreign exchange gains 65 –
7,591 8,494
2005
£’000
2004
£’000
Interest paid on intercompany borrowings 244 21
40. Investment income
41. Finance costs
39. Staff costs
There were no employees of the company during the year ended 31 December 2005 (2004: nil). Emoluments of the non-executive directors can 
be found in the Directors’ remuneration report on page 23.
38. Operating loss
Operating loss before ﬂ otation and non-recurring costs is stated after charging: 69 Raymarine Annual Report 2005 
Place of 
incorporation 
(or registration)
Principal 
activity
Class and 
percentage 
shares held
Method used 
to account for 
investment
Name of subsidiary
Raymarine Holdings Limited Great Britain Holdings company Ordinary 100% Purchase
Raymarine 2002 Limited* Great Britain Non-trading Ordinary 100% Purchase
Raymarine Inc* USA Marine Electronics Ordinary 100% Purchase
Raymarine UK Limited* Great Britain Marine Electronics Ordinary 100% Purchase
Goodwill
£’000
Cost and net book value
At 1 January 2004, 1 January 2005 and 31 December 2005 274
44. Subsidiaries
Details of the Company’s subsidiaries at 31 December 2005 are as 
follows:
2005 2004
£’000 % £’000 %
Proﬁ t before tax 6,741 1,818
Tax at domestic income tax rate of 30% (2004: 30%) 2,022 546
Tax effect of expenses that are not deductible in determining taxable proﬁ t 9 1,424
Dividend income not taxable (2,250) (2,550)
Adjustment to tax charge in respect of previous periods (2,007) –
Tax credit and effective tax rate for the year (2,226) (33.0%) (580) (31.9%)
43. Intangible assets
2005
£’000
2004
£’000
Current tax:
Domestic –  Current (219) (580)
                –  Prior year (2,007) –
(2,226) (580)
42. Taxation
Domestic income tax is calculated at 30% (2004: 30%) of the estimated assessable proﬁ t for the year.
The credit for the year can be reconciled to the proﬁ t per the income statement as follows:
*Investment held by a subsidiary company. Raymarine Annual Report 2005 70
£’000
Balance at 1 January 2004 (863)
Net proﬁ t for the year 2,398
Grant of options below fair value 769
Credit in respect of loss on issue of free shares 342
Employee Beneﬁ t Trust transactions (383)
Balance at 1 January 2005 2,263
Net proﬁ t for the year 8,967
Dividends paid (1,656)
Other adjustment (75)
Exchange differences 20
Balance at 31 December 2005 9,519
45. Financial assets
Cash and cash equivalents
These comprise cash held by the company and short-term bank deposits with an original maturity of three months or less. The carrying amount of 
these assets approximates their fair value.
46. Financial liabilities
Trade and other payables
Trade payables principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period taken for trade 
purchases is 38 days (2004: 40 days).
The directors consider that the carrying amount of trade payables approximates to their fair value.
47. Retained earnings
£’000
Balance at 1 January 2004 2,562
Net proﬁ t for the year 2,398
Increase in share capital and premium 569
Transactions in equity 322
Balance at 1 January 2005 5,851
Net proﬁ t for the year 8,967
Dividends paid (1,656)
Increase in share capital and premium 41
Increase in equity reserves 155
Other adjustment (75)
Exchange differences 21
Balance at 31 December 2005 13,304
48. Statement of changes in equity
Equity comprises share capital, share premium, hedging and translation reserve and retained earnings. 71 Raymarine Annual Report 2005 
2005
£’000
2004
£’000
Operating loss (606) (6,655)
Adjustments for:
     Foreign exchange 57 (19)
Operating cash ﬂ ows before movements in working capital (549) (6,674)
     Increase in receivables (26) (1)
     (Decrease) / increase in payables (1,914) 2,246
Cash used in operations (2,489) (4,429)
Interest received 10 2
Interest paid (244) (21)
Foreign exchange 65 –
Tax received 26 –
Net cash from operating activities (2,632) (4,448)
49. Notes to the cash ﬂ ow statement
Cash and cash equivalents (which are presented as a single class of assets on the face of the balance sheet) comprise cash at bank and other 
short-term highly liquid investments with maturity of three months or less.
50. Explanation of transition to IFRS
This is the ﬁ rst year that the company has presented its ﬁ nancial 
statements under IFRS.  The following disclosures are required in the 
year of transition. The last ﬁ nancial statements under UK GAAP were 
for the year ended 31 December 2004 and the date of transition to 
IFRS was therefore 1 January 2004.
The company has applied IFRS 1 ‘First Time Adoption of International 
Financial Reporting Standards’ as a starting point for reporting under 
IFRS. The company’s date of transition to IFRS is 1 January 2004 and 
comparative information has been restated to reﬂ ect the company’s 
adoption of IFRS except where otherwise required or permitted by 
IFRS 1. 
IFRS 1 requires an entity to comply with each IFRS and IAS effective 
at the reporting date for its ﬁ rst ﬁ nancial statements prepared under 
IFRS. As a general rule, IFRS 1 requires such standards to be applied 
retrospectively. However, the standard allows several optional 
exemptions from full retrospective application. The company has 
elected to take advantage of the following exemptions:
• The company has elected to take advantage of the exemption in 
IFRS 1 regarding translation differences. Accordingly the cumulative 
translation differences for its overseas operations are deemed to be 
nil at the date of transition to IFRS; and
• The company has elected to apply the exemptions in IAS 32 
‘Financial Instruments: Disclosure and Presentation’ and IAS 39 
‘Financial Instruments: Recognition and Measurement’ to apply 
these standards from 1 January 2005 only.
The reconciliations of equity at 1 January 2004 (date of transition 
to IFRS), at 31 December 2004 (date of last UK GAAP ﬁ nancial 
statements) and at 31 December 2005, and the reconciliation of proﬁ t 
for 2004 and 2005, as required by IFRS 1, are given below.
References to UK GAAP for the year ended 31 December 2004, as 
opposed to 31 December 2005, are to the company’s policies as 
applied in its ﬁ nancial statements for the year ended 31 December 
2004.
Signiﬁ cant changes to previously reported UK GAAP ﬁ gures have been 
made in the following areas to comply with IFRS:
G. IAS 38 - Goodwill
IAS 38 requires goodwill to be frozen as at the date of transition to 
IFRS, 1 January 2004, and to be subject to review for impairment 
rather than regular amortisation.  The previously amortised amount 
for the year ended December 2005 of £16k (2004: £16k) has been 
reversed in the transition to IFRS in the income statement.  The effect 
of the transition on the balance sheet at December 2005 was £32k 
(2004: £16k).
H. IAS 32 and 39 – Financial instruments 
The company discloses from 1 January 2004 onwards the cumulative 
currency translation adjustment as part of its ‘hedging and translation 
reserve’. The cumulative currency translation adjustment for 31 
December 2005 was £0.1m (2004: £0.4m) and has been credited to 
this reserve from the retained earnings reserve.
The group has elected to apply the exemptions in IAS 32 ‘Financial 
Instruments: Disclosure and Presentation’ and IAS 39 ‘Financial 
Instruments: Recognition and Measurement’ to apply these standards 
from 1 January 2005 only. Raymarine Annual Report 2005 72
As at 1 January 2004 As at 31 December 2004
UK GAAP
£’000
Effect of 
transition 
to IFRS
£’000
IFRS
£’000
UK GAAP
£’000
Effect of 
transition 
to IFRS
£’000
IFRS
£’000
Note
Non current assets
G Goodwill 297 – 297 258 16 274
297 – 297 258 16 274
Current assets
Trade and other receivables 3,028 – 3,028 2 – 2
Amounts owed by group undertakings – – – 10,585 – 10,585
Current tax assets – – – 614 – 614
Cash and cash equivalents – – – 154 – 154
3,028 – 3,028 11,355 – 11,355
Current liabilities
Trade and other payables 763 – 763 2,179 – 2,179
Amounts owed to group undertakings – – – 3,599 – 3,599
763 – 763 5,778 – 5,778
Net current assets 2,265 – 2,265 5,577 – 5,577
Net assets 2,562 – 2,562 5,835 16 5,851
Equity
Share capital 1 – 1 828 – 828
Share premium 3,424 – 3,424 3,166 – 3,166
Equity reserves – – – – – –
H Hedging and translation rerserves – – – – (406) (406)
G Retained earnings (863) – (863) 1,841 422 2,263
Equity shareholders’ funds 2,562 – 2,562 5,835 16 5,851
50. Explanation of transition to IFRS 
 (continued)
 Reconciliation of equity at 1 January 
 2004 (date of transition to IFRS) and 
 31 December 2004) 73 Raymarine Annual Report 2005 
UK GAAP
£’000
Effect of 
transition 
to IFRS
£’000
IFRS
£’000
Note
Administrative expenses:
– Other administrative expenses (297) – (297)
G – Goodwill (16) 16 –
– Exceptional items: ﬂ otation and non-recurring (6,358) – (6,358)
Operating loss (6,671) 16 (6,655)
Investment income 8,494 – 8,494
Finance costs (21) – (21)
Proﬁ t before tax 1,802 16 1,818
Taxation 580 – 580
Proﬁ t for the period 2,382 16 2,398
50. Explanation of transition to IFRS (continued)
 Reconciliation of proﬁ t for 2004
31 Dec 2004
£’000
Cash and cash equivalents consist of:
Cash and cash equivalent 154
Effect of IFRS adoption for cash ﬂ ow statement
There was no material effect on the cash ﬂ ow statement for the year ended 31 December 2004 following the transition to IFRS.
UK GAAP
#
£’000
Effect of 
transition 
to IFRS
£’000
IFRS
£’000
Note
Administrative expenses:
– Other administrative expenses (632) – (632)
G – Goodwill (16) 16 –
– Exceptional items: ﬂ otation and non-recurring 26 – 26
Operating loss (622) 16 (606)
Investment income 7,591 – 7,591
Finance costs (244) – (244)
Proﬁ t before tax 6,725 16 6,741
Taxation 2,226 – 2,226
Proﬁ t for the period 8,951 16 8,967
Reconciliation of proﬁ t in 2005
# References to UK GAAP reﬂ ect the group’s accounting policies as at 31 December 2004, supplemented in the case of 2005, by the adoption of Financial Reporting Standards 20 to 26 
to the extent that they are applicable to the group. Raymarine Annual Report 2005 74
As at 31 December 2005 
UK GAAP
#
£’000
Effect of 
transition to 
IFRS
£’000
IFRS
£’000
Note
Non-current assets
G Goodwill 242 32 274
242 32 274
Current assets
Trade and other receivables 27 – 27
Amounts owed by group undertakings 10,506 – 10,506
Current tax assets 2,816 – 2,816
Cash and cash equivalents 202 – 202
13,551 – 13,551
Current liabilities
Trade and other payables 4,378 (4,139) 239
Amounts owed to group undertakings 282 – 282
4,660 (4,139) 521
Net current assets 8,891 4,139 13,030
Net assets 9,133 4,171 13,304
Equity
Share capital 828 – 828
Share premium account 3,207 – 3,207
Equity reserves – 155 155
H Hedging and translation reserve – (405) (405)
G Retained earnings 5,098 4,421 9,519
Equity attributable to equity shareholders to the company 9,133 4,171 13,304
50. Explanation of transition to IFRS (continued)
 Reconciliation of equity at 31 December 2005
# References to UK GAAP reﬂ ect the group’s accounting policies as at 31 December 2004, supplemented in the case of 2005, by the adoption of Financial Reporting 
Standards 20 to 26 to the extent that they are applicable to the group. 75 Raymarine Annual Report 2005 
IFRS UK GAAP
2005
£’000
2004
£’000
2003
£’000
2002
£’000
2001
£’000
Results
Revenue 121,851 106,268 93,616 94,772 96,281
Operating proﬁ t 11,077 11,385 5,967 9,631 9,874
Proﬁ t before tax 8,062 5,257 990 1,832 2,571
Proﬁ t attributable to equity shareholders of Raymarine plc 8,367 2,492 306 794 1,219
Assets employed
Non-current assets 49,459 51,156 45,020 48,373 54,193
Current assets 37,761 42,349 35,425 34,254 42,931
Current liabilities (25,108) (26,106) (18,559) (15,795) (17,460)
Non-current liabilities (40,526) (54,577) (55,241) (60,234) (73,118)
Long-term provisions (3,625) (2,308) (2,020) (1,825) (2,408)
Net assets 17,961 10,514 4,625 4,773 4,138
Financed by
Equity 17,961 10,514 4,625 4,773 4,138
Key statistics
Basic earnings per share 10.1p 3.3p 0.4p 1.05p 1.61p
Diluted earnings per share 10.0p 3.0p 0.4p 1.01p 1.56p
The amounts disclosed for 2003 and earlier periods are stated on the basis of UK GAAP because it is not practicable to restate amounts for 
periods prior to the date of transition to IFRS.  The principal differences between UK GAAP and IFRS are explained in note 36 to the accounts, 
which provides an explanation of the transition to IFRS.
The company was incorporated on 22 August 2000 and the Group began to trade on 29 January 2001.
Five year summary Raymarine Annual Report 2005 76
Shareholder information and professional advisers
Report and Accounts
Copies of the 2005 report and accounts will be sent to shareholders and will be available after 18 May 2006 from the Company Secretary at the 
registered ofﬁ ce. Our website address is www.raymarine.com.
Registered Ofﬁ ce
Raymarine plc, 
Quay Point, 
Northarbour Road, 
Portsmouth, 
Hampshire 
PO6 3TD
Shareholder Enquiries
Lloyds TSB Registrars maintain the company’s share register. Enquiries about standings should be addressed to the Registrars at The Causeway, 
Worthing, West Sussex BN99 6DA (telephone 0870 600 3970).
Annual General Meeting
The AGM will be held at the Little Ship Club, Bell Wharf Lane, Upper Thames Street, London EC4R 3TB on Thursday 18 May 2006 at 2pm.
Professional Advisers
Financial Adviser
Hawkpoint Partners Limited
4 Great St Helen’s
London EC3A 6HA
Broker
Collins Stewart Limited
9th ﬂ oor
88 Wood Street
London EC2V 7QR
Auditors
Deloitte & Touche LLP
Chartered Accountants
Registered Auditor
Mountbatten House
Southampton
SO15 2BZ
Principal Bankers
Lloyds TSB plc
25 Gresham Street
London EC2V 7HN Contents
Financial highlights 1
Chairman’s statement 2
Chief executive ofﬁ cer’s review 5
Financial review 8 
Board of directors 14
Corporate governance statement 16
Directors’ remuneration report 20
Company history 24 
Directors’ report 26
Statement of directors’ responsibilities 28
Independent auditors’ report to the members of Raymarine plc 29
Consolidated income statement 30
Consolidated statement of recognised income and expense 31
Consolidated balance sheet 32
Consolidated cash ﬂ ow statement 33
Notes to the ﬁ nancial statements 34
Independent auditors’ report to the members of Raymarine plc 65
Company income statement 66
Company balance sheet 66
Company cash ﬂ ow statement 67
Notes to the company ﬁ nancial statements 67
Five year summary 75
Shareholder information and professional advisers 76
Dual function displays Satellite TV Single-Station Displays
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Radar Antennas
GPS
Product Range
Thousands of boaters head to the water every day, conﬁ dent in the performance and accuracy of their Raymarine equipment. The extensive Raymarine 
product line covers stand-alone entry level products through to high-end, state-of-the-art systems.
06_AR_Cover_5mm_Spine_4.0.indd   2 06_AR_Cover_5mm_Spine_4.0.indd   2 13/3/06   15:55:39 13/3/06   15:55:39 Raymarine plc, 
Quay Point, Northarbour Road, 
Portsmouth, Hampshire PO6 3TD, 
United Kingdom. 
Tel: +44 (0)23 9269 3611 
Fax: +44 (0)23 9269 4642
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Raymarine plc 2005 Annual Report and Accounts