Annual Report & Accounts 2006
Stock Exchange Code: INT.L
International Medical Devices plc International Medical Devices plc Annual Report & Accounts 2006
Welcome
International Medical Devices plc is a rapidly growing
group set up with the aim of becoming one of the
leading medical suppliers in the UK. It also owns
significant distribution and technology rights throughout
most of Europe, the United States, and the UK.
01 Operational Highlights
02 Chairman’s Statement
04 Chief Executive’s Report
08 Financial Review
10 Directors and Advisers
12 Directors’ Report
14 Statement of Directors’ Responsibilities
15 Corporate Governance Statement
16 Report of the Remuneration Committee
18 Independent Auditors’ Report
19 Consolidated Income Statement
20 Statement of Changes in Equity
21 Balance Sheets
22 Consolidated Cash Flow Statement
23 Notes to the Financial Statements
Contents
EMS Medical and Response Medical warehouses are ideally located 
in the M4, M40, M5 triangle for efficient UK access and distribution.
About Us 01 www.imd-plc.com
■ July 2005 — IMD acquired technology patents
and distribution rights from Eastland Technology
Australia (ETA) and Eastland Medical Systems
(EMS).
■ September 2005 — acquisition of Meddis Ltd,
specialist UK distributor of medical devices.
■ April 2006 — acquisition of Response Medical
Equipment for £6.3m.
■ Initial production runs for Clip On™ safe needle
have begun for delivery into NHS.
■ August 2006 — acquisition of EMS Medical 
for £450,000. 
Highlights
■ Build investor and wider market support as a quoted company
■ Grow through acquisition
■ Deliver new products to market
■ Improve productivity and deliver unit cost reductions
■ Maximise integration synergies
■ Safety through innovation
■ Experienced management
Strategic Objectives
ECG CP200 Monitor Welch Allyn Advanced Cardiac Electrodes Leading incontinence care brand
Own brand of medical consumables 02 International Medical Devices plc Annual Report & Accounts 2006
Chairman’s Statement
This has been a rewarding 12 months for International Medical
Devices (“IMD”) and in this period your Company has successfully
concluded three acquisitions, establishing a growing and profitable
medical devices trading house. 
The Company’s continued focus has been to acquire high quality
product portfolio’s of established brands with proven management,
and companies with track records of sales growth, solid margins and
profits. 
The three companies acquired — Meddis, Response Medical and
EMS Medical — operate in different market sectors therefore enabling
IMD to establish a focused divisional structure which will allow the
targeting of non-discretionary spend on medical devices by the NHS
and the private sector.
During the year ahead IMD will focus on four specific sectors:
— Cardiorespiratory
— Medical Consumables
— Aged Care 
— Acute Care
A recent Association of British Healthcare Institute (ABHI) survey of
these four sectors, which account for approximately 50% of the UK
medical devices market, has shown that they are seeing an 8–10%
per annum market growth. This is due to:
● an ageing population
● increasing Department of Health spending
● rising demand for safety medical devices
● an increasing emphasis on medical innovation within the NHS
procurement process, that is driven by the need for new
products, to meet the challenges facing the delivery of higher
quality care
“Life is short, and the Art long; the occasion fleeting; experience fallacious, and judgement difficult. The physician must not only 
be prepared to do what is right himself, but also to make the patient, the attendants, and externals cooperate.” Hippocrates. 
Lindsay C.S. Sanford
Chairman
Steritalc from Novatech (France)
Meddis — “Caretip” brand of suction
catheters 03 www.imd-plc.com Stock Exchange Code: INT.L
IMD’s ambition is to create a leading and profitable medical devices
distribution business. UK healthcare spending is set to increase by
more than 7% per year up to and including 2008. The NHS budget
for 2005 was a reported £84 billion which is equal to healthcare
expenditure per capita of £1,436. This is bringing the UK closer to
Germany and France in terms of per capita spend, and the
government has stated that the 2007/2008 budget for the NHS will
rise to £105 billion, a doubling of overall healthcare expenditure 
since 1997. 
IMD is well positioned to move forward, by combining innovative
Intellectual Property (‘IP’) that is controlled and owned by the Group,
with our ability to exploit its value in the marketplace by utilising the
distribution network that our acquisition programme has put in place.
Today, IMD owns a portfolio of ‘safe’ needle technology and IP , and
brands in devices including suction catheters (‘Caretip’ brands),
ureteroscopy (‘Peditrol’), plastic tubing (‘Tubicare’), head and neck
products (‘Breeze’) and incontinence care (‘Kylie’ and ‘Kanga’).
In the year ahead we intend to launch our safe needle, ‘Clip-on’, and
a range of beds for the hospital and elderly care markets. We will also
continue our acquisition programme and a detailed, investigative
process is ongoing to identify a number of target companies that
meet our strict screening criteria; these include complementary
product ranges and brands that can deliver synergies and cost
savings, particularly in logistics and administration.
IMD has achieved its first year growth objectives and has created the
opportunities for an even better next 12 months. The Board wishes to
thank all staff and executives for their exceptional effort during the
year and looks forward to providing future success to you as
shareholders. The Board is confident we will succeed.
Lindsay C.S. Sanford
Chairman
3 October 2006 04 International Medical Devices plc Annual Report & Accounts 2006
Chief Executive’s Report
In September 2005 IMD began the construction of a new, UK-based
medical device distribution business. Following the acquisition of
Meddis Ltd (Meddis), in September 2005, IMD successfully
concluded the £6.3 million acquisition of Response Medical Group
(Response) in April. On 1 August the Group added EMS Medical as
its latest acquisition.
Response is a proven, profitable distributor with a strong, professional
management team and I regard it as IMD’s aircraft carrier. The
response busines and management are Pivotal to the Group and IMD
is now looking to develop its future business, through a combination
of acquisition and organic growth.
The IMD business model is based both on acquisitions and the
development of IP and the distribution rights acquired. By pursuing
both routes, there is a balance of risk that will ensure shareholder
value. Our approach to acquisitions is to generate cross sales of
products, cost savings via rationalisation of warehousing operations
and administration functions and, with access to the acquired IP and
distribution rights, to vigorously promote organic growth of the
business.
Chris Thomas
Chief Executive Officer
Acquisition of EMS Medical
The cornerstone of our products in aged care is the continence care
range of established brands in Kylie, Kanga and Martex.
“The IMD business model is based both on
acquisitions and the exploitation of our IP.” 05 www.imd-plc.com Stock Exchange Code: INT.L
Business Strategy
IMD’s business strategy is focused on achieving three key objectives:
1. To establish and grow niche, technically orientated, medical
device distribution capability in the UK across four target market
sectors:
● Cardiorespiratory
● Medical Consumables
● Aged Care 
● Acute Care
2. To establish channels to market for the product portfolio by
acquiring established profitable medical device distribution
companies.
3. To continue to develop and exploit the IP and technology for ‘safe’
needles, with the objective of launching the ‘Clip-on’ product range
across key target markets by the last quarter of 2006.
The challenge faced by the operational management team, led by
John Butler, founder of Response, and Matthew Root are to absorb
the new acquisitions into the four divisional structures with the benefits
of making cost savings in the logistics and administration areas. 
The procedures and logistics established by the Group have allowed
this process of absorption to happen. For example, the Meddis sales
operations have merged, in capacity terms, with the Response team,
whilst accounting functions from both Meddis and EMS Medical have
been moved to the Response head office at Chipping Campden.
For the 2006/7 financial year the Group is now organised into four
divisions as shown overleaf.
Acquisition of Patents and Distribution Rights
Safe needle technology is an important new advance in the medical
devices field and IMD has acquired patents for five product lines:
Kylie Mattress Protector Martex Washable Protection Sheet
Safe needle technology products offer key advantages over traditional
medical products and will provide a competitive edge in the global
marketplace for some time to come.
• ClipOn
• SafeLine
• AutoInjecta
• ReverSyringe
• Retralok 06 International Medical Devices plc Annual Report & Accounts 2006
Chief Executive’s Report
continued
Acute Care
Suction catheters for respiratory applications and wound drains
represent a market size of around £5 million for each product
segment. IMD offers its own branded range of suction catheter,
‘Caretip’, and in wound drains IMD represents Produkte fur die
Medizin AG (‘Pfm’), one of Germany’s leading independent sales
specialists for medical devices in the fields of pathology/histology,
OP/anaesthesia, infusion therapy and interventional technologies.
Other key products in the acute care portfolio include a range of
ophthalmic scalpels (Feather) and a specialist respiratory product
‘Steritalc’ from Novatech in France for the treatment of chronic
pleurisies and malignant and spontaneous pneumothorax.
Aged Care
The Ypsomed range of ‘Penfine’ diabetic needles are ‘selfcare health
solutions’, whilst the acquisition of EMS Medical provides a focus on
the aged care sector. The range of products and brands sold in the
division include a range of washable continence care protection
(‘Martex’), a foot operated irrigation system for ureteroscopy (‘Peditrol’),
tracheotomy and endotracheal care (‘Breeze’ head and neck), and
continence care products (‘Kylie’ and ‘Kanga’).
IMD intends to exploit the bed products developed by Eastland
Medical Systems Limited in Australia, and intends to launch them by
2007. Representing Salter Labs, IMD distributes an extensive range of
specialist oxygen cannulae, oxygen masks, nebulisers and oxygen
supply tubing and accessories.
Medical Consumables
A key driver in the IMD business is the development within our
product portfolio of a range of medical consumables. These
include complementary disposables sold in parallel with capital
sales like electrodes, cables, BP cuffs, Sp02, defibrillator pads and
paper. We are currently beginning to sell a range of consumables
under our own ‘Response Medical’ brand. Response Medical will
launch the ‘Clip-on’ safe needle product in the fourth quarter of
2006. 
EMS Medical contributes its ‘Tubicare’ range of disposables
including catheters, eye shields, naso-gastric bile bags, utility clips,
amniotic hooks and medical tubing.
Cardiorespiratory
The bulk of this division comprises sales of defibrillators and ECG
recorders, in particular the Welch Allyn range of Propaq monitors.
Response has recently been awarded exclusive UK rights to A&E
departments and theatre recovery for CPAP , a continuous airway
pressure system from Respironics Inc. Other brands sold include
Medicapteurs, Tyco and Medis.
Our four divisions: 07 www.imd-plc.com Stock Exchange Code: INT.L
Focus
The focus on the four key market sectors outlined above allows IMD
to exploit its portfolio of strong brands that are targeted at areas of
the NHS where procurement practices are non-discretionary. Our
ongoing aim is to continue to offer the NHS a range of quality
products and brands sought by clinicians. Our sales teams cover
every hospital in the UK where they work alongside clinicians to
provide solutions and also to develop supply relationships with PASA
(‘NHS Logistics’). 
In October 2006, NHS Logistics will be outsourced to DHL. This
contract will have an impact on procurement of NHS supplies,
particularly, I believe, where PASA will look for better prices in
commodity items. DHL will subcontract procurement outsourcing to
Novation, a US-based group procurement organisation, in order to
find better value for money contracts and engage more hospitals to
reduce local purchasing contract agreements. This will offer IMD
opportunities to act as a UK-wide ‘sales house’. In September 2006,
NHS logistics launched its ‘Home Delivery Continence Care
Catalogue’ (www.logistics.nhs.uk). EMS Medical, with its wide range
of continence products, occupies a significant part of this catalogue. 
Summary
IMD has spent the last 12 months putting in place the structures to
provide the Company with growth areas for the future. These will be:
1. Further acquisitions
2. Organic growth from acquired and existing products and brands
3. The exploitation of our IP via new product launches and
achieving fast routes to markets
4. Acquisition of new distribution agreements from ‘major’ principals
as our reputation grows
We continue to rely on our business partners both in the UK and
overseas. I hope they see IMD becoming an integral part of their sales
solutions.
Finally I would like to stress that it is individual commitment to a group
effort that makes a team work, a company work, a society work, and
a civilisation work. This is the ethic that I hope IMD will engineer
amongst employees, and which will carry the Company further on its
growth path. 
Christopher Thomas
Chief Executive Officer
3 October 2006 08 International Medical Devices plc Annual Report & Accounts 2006
Financial Review
I am pleased to report that the financial performance of IMD, along
with its underlying subsidiaries, has been very positive. All businesses
acquired are trading well and all have made positive operating profit
contributions in the year to 31 August 2006. There are many
opportunities in the business sectors in which IMD operates for
growth, both organically and through acquisition.
Fund-raising and Acquisitions
During the year to 31 August 2006, IMD successfully raised £3.3
million in equity. These funds have been utilised for the acquisition of
the present IMD subsidiaries, for the development of business
opportunities within the Group, and for working capital.
Consideration for all three companies acquired took the form of cash,
shares, and performance related deferred share payments. The
rationale is to incentivise the vendors to continue building the
business, and in turn profits, and to motivate them for longer term
involvement with, and the success of, the Company. This formula has
successfully been applied to all acquisitions made to date, and it is
the Company’s intention to continue with this approach where
possible. Shares have in all cases to date been issued at a premium
to the market price at the time of the transaction, while deferred share
payments will be made on the basis of the market price of IMD
shares at the time payment becomes due.
Capital reserves include expected future deferred consideration
payable in the form of shares, amounting to £1,350,000, in
accordance with International Financial Reporting Standard 3.
Revenue
The Group achieved revenue of £3.8 million during the year to 
31 August 2006. There are no comparative figures for revenue, as
IMD had no sales in its own right, nor had it made any acquisitions 
of trading companies, in the period to 31 August 2005.
Revenue reflects sales achieved by the companies acquired during
the year, from the date of acquisition, to the year end. Therefore,
approximately eleven months’ trading has been included for Meddis,
five months’ trading for Response, and one month’s trading for EMS
Medical. As a result, revenue is anticipated to be significantly greater
for the year ending 31 August 2007, when revenue will include 12
months’ sales for all three operating companies.
Overseas revenue amounted to £40,000, arising from post-acquisition
sales by EMS Medical for one month to the year end. All other sales
were within the UK. 
Gross profit margins on revenue averaged 36% for the year, and
these levels of margins are set to continue.
Michael Acheson
Finance Director
“All businesses aquired are trading well and all have made positive
operating profit contributions in the year 31 August 2006. ” 09 www.imd-plc.com Stock Exchange Code: INT.L
Operating Profit
IMD incurred an Operating Loss before exceptional items for the year,
amounting to £222,000 (2005: Loss £323,000). This result reflects full
year central overheads for IMD, but part year operating profit
contributions from the operating subsidiaries acquired during the year,
as noted above. All three operating companies, however, produced
positive operating profit contributions following the date of acquisition
to the year end.
In addition, the Group incurred an exceptional cost of £85,000 arising
from the restructuring of one acquisition, resulting in the closure of a
warehouse and administration centre, with the operations being
consolidated into the Chipping Campden location. This closure will
result in direct savings, the benefits of which will be reflected in next
year’s operating profit.
With no corporation tax payable, the resultant loss after tax for the
year amounted to £360,000.
Pro forma Revenue and Operating Profit
Following the acquisition of the three companies during the year
ended 31 August 2006, the pro forma revenue for the Group,
assuming 12 months’ full trading of these companies is estimated 
to be £10.7 million, with an estimated operating profit of £950,000.
These figures are unaudited and do not form part of the financial
statements.
Cash and Net Debt
The Group had cash of £706,000 at the year end (2005: £363,000).
This is before the overdraft of £79,000, short-term loans of £350,000
and long-term loans of £1,300,000. Therefore, net debt amounts to
£1,023,000 (2005: £Nil). The long-term debt was assumed as part of
the Response acquisition and is repayable over a four year term. The
short-term debt also formed part of net assets acquired. Gearing, net
of cash balances, is 6.5% of net assets (2005: Nil%), and is
considered prudent relative to operational cash flow generation. Net
finance cost for the period amounted to £53,000 (2005: net income
£6,000).
Working Capital
Medical devices distribution businesses rely on having inventory
available, in most cases, for immediate delivery. The Group is focusing
on keeping inventory levels to a minimum, yet without adversely
affecting sales. Inventory at 31 August 2006 amounted to
£1,719,000.
Goodwill
IMD has Goodwill on the Balance Sheet amounting to £8,674,000
(2005: £Nil). Goodwill arises directly from the difference between the
consideration paid for the acquisition of companies, and the net
assets acquired. The nature of distribution companies is that net
assets acquired are likely to be small in relation to the Company’s
profitability, as the business by its very nature is not significantly
capital intensive. Goodwill includes expected future deferred
consideration payable in the form of shares, in accordance with
International Financial Reporting Standard 3.
International Financial Reporting Standards
IMD has adopted International Financial Reporting Standards, even
though there is currently no requirement to do so. This approach has
been adopted on the basis of good practice. Restatement of 2005
comparatives based on International Financial Reporting Standards
does not result in any changes to the figures previously reported.
Dividends
IMD is not declaring a dividend for the year. Mindful of shareholder
wishes, a progressive dividend policy will be adopted in future, when
the Board of Directors considers it appropriate in relation to the
Group’s financial position. 
Taxation
There is no corporation tax charge for the year. Tax losses, subject to
HM Revenue & Customs agreement, of approximately £600,000 are
available in IMD, which will be available for future offset.
Given the short history of IMD, we are pleased with the financial
performance of the Group, and have every confidence for the future.
Mike Acheson
Finance Director
3 October 2006 10 International Medical Devices plc Annual Report & Accounts 2006
Directors & Advisers
Christopher R. C. Thomas
(aged 49), Chief Executive
Lindsay C. S. Sanford
(aged 63), Executive Chairman
Matthew E. Root 
(aged 39), Executive Director
Michael Acheson
(aged 48), Finance Director
The founder partner of Sanford
Partners, Registered Taxation
Consultants & Corporate
Accountants for 35 years in
Australia, Lindsay now resides in
England. His principal areas of
practice include corporate advisory,
capital raisings and initial public
offerings, debt and equity
restructurings, mergers and
acquisitions, foreign investment,
corporate compliance and
securities market regulation. His
experience has been in the areas
of mining, construction,
telecommunications, technology,
the medical field and property
development.
Prior to establishing IMD, Lindsay
was Executive Chairman of AFT
Corporation Limited and Eastland
Medical Systems Limited, both
Australian listed companies. He is
presently Chairman of First
Manhattan Fidelity Limited, Boston
Mining Limited and of Transvision
Resources plc, and he holds
various other directorships. 
After four years with Deloitte
Haskins & Sells in the early
1980s’, Chris has gained
extensive commercial
experience in the UK, Europe
and Middle East. From 1993
until 1999, he was Chief
Executive of subsidiaries of Total
Fina Elf, First Cray Valley (a
leading European manufacturer
of synthetic resins) and then,
from September 1996 until
1999, of Kalon France SA
(France’s leading manufacturer
of decorative paints).
Subsequently he worked in
company turnaround situations
including the merger and
delisting of Vymura Plc with
Coloroll (Englewood Ltd as
CEO), RMR Plc (Talent Television
Plc) and Ninth Floor plc (Farsight
Plc).
Mike is a Chartered Accountant
and Finance Director, with
significant international
experience in manufacturing,
retailing, foreign exchange and
distribution industries. Prior to
joining IMD, he was Finance
Director of a water sports
manufacturer. In 1995 he jointly
founded Master Change where
he was joint Chief Executive
Officer and Finance Director,
and was responsible for setting
up operations across Europe,
subsequently selling the
business to an AIM-listed group.
Prior to this, he was Finance
Director of a retail group with a
turnover of £160 million per
annum. He has also worked in
consultancy and the wine
industry. He qualified with
Deloitte.
After working in Accountancy and
Education, Matthew moved into
the healthcare industry in 1995.
Matthew joined John Butler at
Response in 1996 as a salesman
and was promoted to Sales
Manager in 1998. He became
Managing Director in 2002 and
has played a significant role in
developing the strategy of
product range to give the
company more stability. Since
then the turnover has almost
doubled. Matthew joined the
Board of IMD in April this year. Stock Exchange Code: INT.L 11 www.imd-plc.com
Francis Don O’Sullivan
(aged 69), Non-Executive Director
John Butler
(aged 51), Executive Director
Doug Sims
(aged 62), Non-Executive Director
John, who holds a degree in
Business Studies, has been
involved in medical distribution for
29 years. In 1994 he founded
Response Medical Equipment
Ltd, subsequently becoming
Chairman in 2002. Under John,
Response’s sales and profits have
consistently increased over the
past 11 years. John joined the
Board of IMD in April this year.
Don O’Sullivan is an Australian
citizen living in Perth, Australia.
Don has over 30 years’
experience as the Chief
Executive Officer and Chairman
of several private and public
companies in a wide range of
industry sectors. Don is also
Managing Director of Eastland
Medical Systems Ltd.
Doug is an Australian citizen and
lives in Western Australia. He has
over 20 years’ experience in
developing new products for
commercialisation, intellectual
property and patent protection.
He is Managing Director of
Eastland Technology Australia
Limited, and an Executive
Director of Eastland Medical
Systems Ltd responsible for
product development.
Jeremy I. Friedlander
(aged 51), Non-Executive Director
A lawyer qualified in South Africa,
Jeremy founded McCreedy
Friedlander, a commercial
property company which was
listed in 1998 as part of a
financial services group. Prior to
that he was a Commercial
Director at DTZ Leadenhall. He
moved to the UK in 1998. He
and two colleagues recently
formed Full Metal Services
Limited, a company that
identifies and sources investment
for early stage natural resource
ventures.
Secretary and 
Registered Office
M. Acheson
33 St James’s Square
London 
SW1Y 4JS
Registered Auditors
Shipleys LLP
10 Orange Street
London 
WC2H 7DQ
Nominated Adviser 
Corporate Synergy Plc 
30 Old Broad Street
London 
EC2N 1HT
Corporate Strategy
Consultants
Boston Capital Investments 
S.A.
33 St James’s Square
London 
SW1Y 4JS
Bankers 
Halifax Bank of Scotland plc
55 Temple Row
Birmingham
B2 5LS
Registrars
Share Registrars Limited
Craven House
West Street
Farnham
Surrey 
GU9 7EN
Solicitors
Pritchard Englefield
14 New Street
London 
EC2M 4HE 12 International Medical Devices plc Annual Report & Accounts 2006
Directors’ Report
The Directors present their report and the audited financial statements
for the year ended 31 August 2006. 
Principal Activities
The principal activities of the Group are detailed in the Chairman’s
Statement and the Chief Executive’s Statement.
Results and Dividends
The trading results for the year and the Group’s financial position at
the end of the year are shown in the attached financial statements.
The financial statements have been prepared under International
Financial Reporting Standards (IFRS).
Revenue for the year to 31 August 2006 amounted to £3,817,000
(2005: £Nil) and the loss after tax for the year was £360,000 (2005:
loss after tax £317,000). 
The Directors do not recommend a dividend.
Directors
The following have served as Directors of the Company during the
year ended 31 August 2006:
L. Sanford
C. Thomas
M. Acheson
J. Butler
M. Root
J. Friedlander
F. O’Sullivan
D. Sims
Directors’ Interests
The Directors’ interests in shares and share options in the Company
are shown in the Directors’ Remuneration Report on pages 16 to 17.
Share Issues
During the year 124,426,587 shares were issued, details of which can
be found in note 16 to the financial statements.
Financial Risk Management
The Group’s exposure to financial risk is set out in note 1.12 to the
financial statements.
Policy on Payments to Suppliers
It is the policy of the Group in respect of all its suppliers, where
reasonably practicable, to settle the terms of payment with those
suppliers when agreeing the terms of each transaction, to ensure that
those suppliers are made aware of the terms of payment, and to
abide by these.
Health Safety and the Environment
The Group operates responsibly with regard to its shareholders,
employees, other stakeholders, the environment and the wider
community. The Group and Company are committed to the well-being
of all employees and ensure that their health, safety and general
welfare is paramount at all times. We also maintain open and fair
relationships with all clients and suppliers while ensuring that all
transactions are operated on an arm’s length, commercial basis.
Going Concern
After reviewing budgets and forecasts, the Directors have a
reasonable expectation that the Group and Company have adequate
resources to continue as an operational business for the foreseeable
future. The financial statements have therefore been prepared on a
going concern basis.
Substantial Interests
The Board has been notified that, at the date of this Report, the following are interested in 3 per cent or more of the issued Ordinary Share
Capital of the Company.
Number of 
Shareholders Shares %
J. Butler 13,200,000 5.3
O. Dix 8,800,000 3.5
Eastland Medical Systems Ltd 40,500,000 16.2
Eastland Technology Australia Ltd 50,000,000 20.1
S. Hinton 8,800,000 3.5
M. Root 13,200,000 5.3 13 www.imd-plc.com Stock Exchange Code: INT.L
Political and Charitable Contributions
No political or charitable donations were made during the year.
Employment Policy
The Board places considerable value on the involvement of its
employees and has effective arrangements for communicating the
Group’s results and significant business issues to them.
The Directors recognise that continued and sustained improvement of
the Group depends on its ability to attract, motivate and retain
employees of the highest calibre. Furthermore, the Directors believe
that the Group’s ability to sustain the competitive advantage in the
long term depends on ensuring that all employees contribute to the
maximum of their potential. The Group is committed to improving the
performance of all its employees through appropriate development
and training.
The Group is an equal opportunity employer. Entry into and
progression within the Group is solely determined on the basis of
work criteria and individual merit.
The Group gives full and fair consideration to applications for
employment made by disabled persons, having regard to their
respective aptitudes and abilities. The policy includes, where
practicable, the continued employment of those who may become
disabled during their employment and the provision of training and
career development and promotion, where appropriate.
Independent Auditor
On 1 May 2006 the practice of AGN Shipleys transferred its business
to Shipleys LLP , a limited liability partnership incorporated under the
Limited Liability Partnership Act 2000. The Company’s consent has
been given to treating the appointment of AGN Shipleys as extending
to Shipleys LLP with effect from 1 May 2006 under the provisions of
section 26(5) Companies Act 1989. Shipleys LLP has indicated its
willingness to remain in office and a resolution to reappoint them as
auditors will be proposed at the Annual General Meeting.
Annual General Meeting
The Annual General Meeting will be held on 3 November 2006. The
notice of the meeting is enclosed. This contains the text of the
resolutions proposed.
Signed by order of the Board
M. Acheson
Company Secretary
3 October 2006 14 International Medical Devices plc Annual Report & Accounts 2006
Statement of Directors’ Responsibilities
Company law requires the Directors to prepare financial statements
for each financial period which give a true and fair view of the state of
affairs of the Group and of the income statement of the Group for that
period. In preparing those financial statements the Directors are
required to:
1. select suitable accounting policies and then apply them
consistently;
2. make judgements and estimates that are reasonable and
prudent;
3. state whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the financial statements;
4. prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Group will continue
in business.
The Directors are responsible for keeping proper accounting records
which disclose with reasonable accuracy at any time the financial
position of the Group and to enable them to ensure that the financial
statements comply with the requirements of the Companies Act 1985
and Article 4 of the IAS regulation. They are also responsible for
safeguarding the assets of the Group and hence for taking reasonable
steps for the prevention and detection of fraud and other irregularities.
The Directors’ are responsibility for the maintainence and integrity of
the corporate and financial information included on the Company’s
website. Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from legislation in
other Jurisdictions.
Disclosure of information to auditors
In the case of each of the persons who are Directors of the Group at
the date when this report was approved:
● so far as each of the Directors is aware, there is no relevant audit
information (as defined in the Companies Act 1985) of which the
Group’s auditors are unaware; and 
● each of the Directors has taken all the steps that he/she ought to
have taken as a Director to make himself/herself aware of any
relevant audit information (as defined) as to establish that the
Group’s auditors are aware of that information. 15 www.imd-plc.com Stock Exchange Code: INT.L
Corporate Governance Statement
The Company’s shares are traded on AIM and the Company is
therefore not required to comply with the provisions of the Combined
Code. The Directors continue to support the principles of the
Combined Code and confirm that the Company seeks to comply with
the Code as far as is appropriate, having regard to the size of the
Group and its stage of development.
Audit Committee
The Company set up an Audit Committee on 15 December 2005,
comprising Jeremy Friedlander, as Chairman, and Lindsay Sanford.
The Committee has formal terms of reference and meets three times
per year, according to the requirements of the Company’s calendar.
The Committee monitors the external audit function and ensures the
integrity of the Group’s interim and full year financial statements
before publication. The Audit Committee meets with the external
auditor once per year without any full-time Executive Directors
present.
Remuneration Committee
The Remuneration Committee set up on 15 December 2005 is
chaired by Jeremy Friedlander. Its duties include considering the
annual salaries of the Executive Directors and the need to ensure
Executive Directors’ continued commitment to the success of the
Group by means of incentive schemes. The Committee is also
responsible for the implementation and subsequent monitoring of the
share option schemes.
Relationship with shareholders
The Company seeks to ensure that all shareholders are kept informed
about the Company and its activities. A comprehensive Annual Report
and Accounts is sent to shareholders and an interim report is
published.
When the Annual Report is sent to shareholders it is accompanied by
notice of the Annual General Meeting of the Company at which a
presentation is given and Directors are available to take questions.
The Annual General Meeting is a forum for shareholders’ participation
with the opportunity to meet and question Board members including
the non-executive members and the Chairman of the Board
committees.
The Chief Executive, Finance Director, and the Chairman meet with
analysts and institutional shareholders to keep them informed of
significant developments. 16 International Medical Devices plc Annual Report & Accounts 2006
Report of the Remuneration Committee
The Board appointed a Remuneration Committee as of 15 December 2005. The Committee has formal terms of reference and meetings are
held as and when required although the Committee is required to meet at least twice a year. The Committee, on behalf of the Board,
determines all elements of remuneration packages of the Executive and Non-Executive Directors of the Group.
The following report provides details of the Group’s service agreements, together with remuneration, of the Executive and Non-Executive
Directors, for the year ended 31 August 2006.
Directors’ Service Agreements:
Date of service agreement Notice period 
Executive Directors:
L. Sanford 29 September 2004 6 months by either party
C. Thomas 1 May 2005 12 months by either party
M. Acheson 6 April 2006 12 months by either party
J. Butler 5 April 2006 12 months by either party
M. Root 5 April 2006 12 months by either party
Non-executive Directors:
J. Friedlander 29 September 2004 6 months by either party
F. O’Sullivan 24 June 2005 6 months by either party
D. Sims 24 June 2005 6 months by either party
Directors’ Remuneration:
Pension Total Total
Salaries Bonuses Benefits Contribution 2006 2005
£’000 £’000 £’000 £’000 £’000 £’000
Executive Directors:
L. Sanford (1) 20 — 5 — 25 20
C. Thomas (2) 132 25 5 — 162 40
M. Acheson (2) 69 25 5 — 99 —
J. Butler 52 — 4 3 59 —
M. Root 52 — 4 1 57 —
Non-executive directors:
J. Friedlander 20——— 20 18
F. O’Sullivan 20——— 20 2
D. Sims 20——— 20 2
Notes:
(1) Boston Capital Investments S.A., a company in which Mr Sanford is a director and has an interest, is corporate adviser to the Company.
Fees are payable to this company amounting to £150,000 per annum. These fees are not included in the above analysis of Directors’
remuneration.
(2) Bonuses were in the form of 357,143 shares issued and allotted at an issue price of 7 pence per share. 17 www.imd-plc.com Stock Exchange Code: INT.L
Directors’ interests in share options:
As at As at
1 Sept Awarded in 31 Aug Exercise price Exercisable Exercisable 
2005 period 2006 £ from to
L. Sanford — 5,000,000 5,000,000 0.05 1/10/2006 30/9/2016
C. Thomas — 8,333,333 8,333,333 0.05 1/10/2006 30/9/2016
M. Acheson — 3,333,333 3,333,333 0.05 1/10/2006 30/9/2016
Directors’ interests in shares:
The interests of the Directors in the Ordinary shares of 1p in the Company at 31 August 2006 some of which are beneficially held were as
follows:
Non-
beneficial
Beneficial Number of Total of
Number shares held Total shares held
Director 2006 2006 2006 2005
L. Sanford — 3,700,000 3,700,000 3,700,000
C. Thomas 1,423,810 — 1,423,810 666,667
M. Acheson 757,143 — 757,143 —
J. Butler 13,200,000 —13,200,000 —
M. Root 13,200,000 —13,200,000 —
J. Friedlander 500,000 750,000 1,250,000 1,250,000
F. O’Sullivan (1) ————
D. Sims (2) ————
Notes:
(1) F. O’Sullivan has related interests in 40,500,000 Ordinary shares.
(2) D. Sims has related interests in 50,000,000 Ordinary shares. 18 International Medical Devices plc Annual Report & Accounts 2006
Independent Auditors’ Report to the Members of 
International Medical Devices plc
We have audited the Group and parent Company financial statements
on pages 19 to 32 for the year ended 31 August 2006 which
comprise the Consolidated Income Statement, Statement of Changes
in Equity, Balance Sheets, Consolidated Cash Flow Statement, and
the related notes. The financial statements have been prepared under
the accounting policies set out therein.
This report is made solely to the Company’s members, as a body, in
accordance with Section 235 of the Companies Act 1985. Our audit
work has been undertaken so that we might state to the Company’s
members those matters we are required to state to them in an
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
Group financial statements in accordance with applicable law and
International Financial Reporting Standards (IFRSs) as adopted for use
in the European Union, and for preparing the parent Company
financial statements and the Directors’ Remuneration Report in
accordance with applicable law and United Kingdom Accounting
Standards (United Kingdom Generally Accepted Accounting Practice)
are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the accounts in accordance with relevant
legal and regulatory requirements and International Standards on
Auditing (UK and Ireland). 
We report to you our opinion as to whether the financial statements
give a true and fair view and are properly prepared in accordance with
the Companies Act 1985 and whether, in addition, the Group financial
statements have been properly prepared in accordance with Article 4
of the IAS regulations. We also report to you if, in our opinion, the
Directors’ Report is not consistent with the accounts, 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 the
information specified by law regarding Directors’ remuneration and
other transactions with the Company is not disclosed.
We read other information contained in the Annual Report, and
consider whether it is consistent with the audited financial statements.
The other information comprises only the Chairman’s Statement, Chief
Executive’s Statement, Financial Review, Directors’ Report, Statement
of Directors’ Responsibilities, Corporate Government Statement, and
the Report of the Remuneration Committee. We consider the
implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the financial
statements. Our responsibilities do not extend to any other
information beyond that referred to in this paragraph.
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 accounts. It also includes an
assessment of the significant estimates and judgements made by the
Directors in the preparation of the accounts, 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 sufficient evidence to give reasonable assurance
that the accounts 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 accounts.
Opinion
In our opinion the Group financial statements give a true and fair view,
in accordance with IFRS’s as adopted for use in the European Union
applied in accordance with the provisions of the Companies Act
1985, of the state of the Group’s affairs as at 31 August 2006 and of
its loss for the year then ended.
The Group financial statements have been properly prepared in
accordance with the Companies Act 1985, of Article 4 of the IAS
regulation. The parent Company financial statements give a true and
fair view, in accordance with IFRS’s, as adopted for use in the
European Union as applied in accordance with the provisions of the
Companies Act 1985, of the state of the parent Company’s affairs as
at 31 August 2006 and of its loss for the year then ended.
The parent Company financial statements have been properly prepared
in accordance with the Companies Act 1985. The information
contained in the Directors’ Report is consistent with the financial
statements.
As explained in note 1 to the Group financial statements, the Group in
addition to complying with its legal obligations to comply with IFRS’s,
as adopted for use in the European Union, has also complied with
IFRS’s as issued by the International Accounting Standards Board.
Shipleys LLP
Chartered Accountants 10 Orange Street
Registered Auditors Haymarket
3 October 2006 London 
WC2H 7DQ 19 www.imd-plc.com Stock Exchange Code: INT.L
Consolidated Income Statement
For the year ended 31 August 2006
Group
Year 13 month
ended period ended
31 Aug 31 Aug
2006 2005
Notes £000 £000
Revenue 2 3,817 —
Cost of sales (2,443) —
Gross profit 1,374 —
Distribution expenses (460) —
Administration expenses (1,136) (323)
Operating loss before restructure costs 4 (222) (323)
Restructure costs 6 (85) —
Operating loss (307) (323)
Finance costs (70) —
Finance income 17 6
Loss before tax (360) (317)
Taxation 7 — —
Loss for the year (360) (317)
Loss per share
Basic and Diluted 15 £(0.0021) £(0.0125)
There were no other gains or losses other than those recognised in the income statement. All activities relate to continuing activities.
The notes on pages 19 to 32 form part of these financial statements. 20 International Medical Devices plc Annual Report & Accounts 2006
Statements of Changes in Equity
For the year ended 31 August 2006
Share Share Capital Retained
Capital Premium Reserve Earnings Total
Group £000 £000 £000 £000 £000
Balance as at 1 September 2005 1,245 7,251 — (317) 8,179
Changes in equity for the year to 31 August 2006:
Loss for the year — — — (360) (360)
Total recognised income and expense for the year — — — (360) (360)
Issue of share capital 1,244 5,781 — — 7,025
Issue costs — (533) — — (533)
Deferred contingent consideration — — 1,350 — 1,350
Movement in year 1,244 5,248 1,350 (360) 7,482
Balance as at 31 August 2006 2,489 12,499 1,350 (677) 15,661
Share Share Capital Retained
Capital Premium Reserve Earnings Total
Company £000 £000 £000 £000 £000
Balance as at 1 September 2005 1,245 7,251 — (317) 8,179
Changes in equity for the year to 31 August 2006:
Loss for the year — — — (545) (545)
Total recognised income and expense for the year — — — (545) (545)
Issue of share capital 1,244 5,781 — — 7,025
Issue costs — (533) — — (533)
Deferred contingent consideration — — 1,350 — 1,350
Movement in year 1,244 5,248 1,350 (545) 7,297
Balance as at 31 August 2006 2,489 12,499 1,350 (862) 15,476
The notes on pages 23 to 32 form part of these financial statements. 21 www.imd-plc.com
As at 31 August 2006
Group Company
2006 2005 2006 2005
Note £000 £000 £000 £ 000
Assets
Non-current assets
Goodwill 8 8,674 — — —
Other intangible assets 8 8,479 7,953 8,001 7,953
Property, plant and equipment 9 233 — — —
Investments in subsidiaries 10 — — 8,494 —
17,386 7,953 16,495 7,953
Current assets
Inventories 11 1,719 — — —
Trade receivables 1,276 — — —
Other receivables 290 128 — 128
Intercompany loan — — 188 —
Cash and cash equivalents 706 363 175 363
3,991 491 363 491
Total assets 21,377 8,444 16,858 8,444
Equity and liabilities
Equity attributable to equity holders of the parent
Share capital 16 2,489 1,245 2,489 1,245
Share premium 16 12,499 7,251 12,499 7,251
Capital reserves 1,350 — 1,350 —
Retained earnings (677) (317) (862) (317)
15,661 8,179 15,476 8,179
Non-current liabilities
Bank loans 13 1,300 — — —
Convertible loan notes 250 — 250 —
Other non-current liabilities 444 — — —
1,994 — 250
—
Current liabilities
Trade and other payables 12 3,122 265 349 265
Intercompany loan 12 — — 533 —
Convertible loan notes 12 250 — 250 —
Bank loans 12 350 — — —
Total liabilities 5,716 265 1,382 265
Total equity and liabilities 21,377 8,444 16,858 8,444
Approved by the Board and signed on their behalf by
L.C.S. Sanford
Chairman
3 October 2006
The notes on pages 23 to 32 form part of these financial statements.
Balance Sheets 22 International Medical Devices plc Annual Report & Accounts 2006
Consolidated Cash Flow Statement
For the year ended 31 August 2006
Year 13 month
ended period ended
31 Aug 31 Aug
2006 2005
£000 £000
Cash flows from operating activities
Loss from operations (307) (323)
Adjustments for:
Depreciation of property, plant and equipment 45 —
Operating cash flows before movement in working capital (262) (323)
(Increase) in inventories (316) (128)
Decrease in receivables 892 —
(Decrease)/increase in payables (320) 265
Tax paid (80) —
Cash generated from operations (86) (186)
Interest paid (70) —
Net cash used in operating activities (156) (186)
Cash flows from investing activities
Interest received 17 6
Acquisition of Intellectual Property rights (44) (150)
Acquisition of Meddis Ltd net of cash acquired (170) —
Acquisition of RME Holdings Ltd net of cash acquired (1,890) —
Acquisition of EMS Medical Ltd net of cash acquired (374) —
Net cash used in investment activities (2,461) (144)
Cash flows from financing activities
Net proceeds on issues of shares 2,815 693
Net borrowings 145 —
Net cash from financing activities 2,960 693
Net increase in cash and cash equivalents 343 363
Cash and cash equivalents at beginning of year 363 —
Cash and cash equivalents at end of year 706 363
Bank balances and cash 706 363 23 www.imd-plc.com
Notes to the Consolidated Financial Statements
1. Presentation of Financial Statements
The financial statements have been prepared in accordance with International Financial Reporting Standards (‘IFRS’) and with those parts
of the Companies Act 1985 and Article 4 of the IAS regulations, applicable to companies reporting under IFRS. The financial reports have
been prepared under the historical cost convention.
The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates and
assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge of the amount,
event or actions, actual results ultimately may differ from those estimates. A summary of the more important accounting policies, which
have been applied consistently, is set out below:
1.1 Basis of accounting
The financial statements are prepared in accordance with the historical cost convention.
1.2 Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and enterprises controlled by the Company
(and its subsidiaries) and are made up to 31 August each year. Control is achieved where the Company has the power to govern the
financial and operating policies of an investee enterprise so as to obtain benefits from its activities.
The financial statements of International Medical Devices plc have been prepared in accordance with the International Financial Reporting
Standards (‘IFRS’). Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies
used into line with those used by other members of the Group.
All significant intercompany transactions and balances between Group enterprises are eliminated on consolidation.
The principal subsidiary undertakings at 31 August 2006 are as follows:
Company Activity % Ownership
Meddis Ltd Medical Distribution 100
Response Medical Equipment Ltd Medical Distribution 100
RME Holdings Ltd Holding Company 100
EMS Medical Ltd Medical Distribution 100
All companies are incorporated and registered in England.
1.3 Revenue recognition
Revenue represents the total invoice value, excluding value added tax, of sales made in the year. Interest income is accrued on a time
basis, by reference to the principal outstanding and at the interest rate applicable. Dividend income from investments is recognised when
the shareholders’ rights to receive payment have been established.
1.4 Foreign currencies
Transactions in foreign currency are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies at the balance sheet date are translated to sterling at the foreign exchange rate ruling at that
date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary assets and liabilities that
are measured in terms of the historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to sterling at the foreign
exchange rates ruling at the dates that fair value was determined. 
1.5 Inventory
Inventory is valued to the lower of cost and net realisable value. 24 International Medical Devices plc Annual Report & Accounts 2006
Notes to the Consolidated Financial Statements
continued 
1. Presentation of Financial Statements continued
1.6 Intangible assets
Goodwill
All business combinations are accounted for by applying the purchase method. Goodwill represents the amount arising on acquisition of
subsidiaries. In respect of business acquisitions, goodwill represents the difference between the cost of the acquisition and the fair value of
the net identifiable assets acquired.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units and is no longer
amortised but is tested annually for impairment (see accounting policy 1.8).
Negative goodwill arising on acquisition is recognised directly in the income statement.
1.7 Property, plant and equipment
Fixtures and equipment are stated at cost less accumulated depreciation.
Depreciation is charged so as to write off the cost or valuation or assets over their estimated useful lives, using the straight-line method, on
the following bases:
Fixtures, Fittings and equipment 20%
Motor Vehicles 25%
Plant and Machinery 10%
Leasehold Property Improvements straight-line over life of lease
The asset’s residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset’s carrying
amount is written down immediately to its recoverable amount if the asset’s carrying amount is great than its estimated recoverable
amount.
Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount and are included in the
income statement.
1.8 Impairment 
The carrying amounts of the Group’s assets, other than deferred tax assets (see accounting policy 1.13), are reviewed at each balance
sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is
estimated.
For goodwill, assets have an indefinite useful life and intangible assets that are not yet available for use, the recoverable amount is
estimated at each balance sheet date.
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount.
Impairment losses are recognised in the income statement.
Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill
allocated to cash-generating units (group of units) and then, to reduce the carrying amount of other assets in the unit (group of units) on a
pro rata basis.
The recoverable amount of the Group’s receivables carried at amortised cost is calculated as the present value of the estimated future
cash flows, discounted at the original effective interest rate. Receivables with a short duration are not discounted.
The recoverable amount of other assets is the greater of their net selling price and the value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the
recoverable amount is determined for the cash-generating unit to which the asset belongs.
An impairment loss in respect of a receivable carried at amortised cost is reversed if the subsequent increase in recoverable amount can
be related objectively to an event occurring after the impairment loss was recognised.
An impairment loss in respect of goodwill is not reversed. 25 www.imd-plc.com
1. Presentation of Financial Statements continued
1.8 Impairment continued
In respect of other assets, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable
amount.
An impairment loss is only reversed to the extent that the asset’s carrying amount does not exceed the carrying amount that would have
been determined, net of depreciation or amortisation, if no impairment loss as been recognised.
1.9 Trade receivables
Trade receivables are recognised initially at fair value less provision for impairment. A provision for impairment of trade receivables is
established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of
receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future
cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the income statement.
1.10Trade payables
Trade payables are stated at their nominal value.
1.11Convertible loan notes
The Group has issued £500,000 convertible loan notes as part consideration for the acquisition of RME Holdings Limited. £250,000
becomes due on 31 March 2007, with a balance due on 31 March 2008. The vendors of RME Holdings Limited have the option to be
paid in cash, or shares based on the share price quoted at that date. £250,000 of the convertible loan notes have been included in
creditors due within one year in the Group and Company’s balance sheets, and £250,000 in the payables due after one year.
1.12 Financial Risk Management
The Group uses a limited number of financial instruments, comprising cash, short-term deposits, bank loans and overdrafts and various
items such as trade receivables and payables, which arise directly from operations. The Group does not trade in financial instruments. 
(i)  Financial risk factors 
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk and interest rate risk), credit risk,
liquidity risk and cash ﬂow interest rate risk. The Group’s overall risk management programme focuses on the unpredictability of
financial markets and seeks to minimise potential adverse effects on the Group’s financial performance. 
(ii) Market risk 
(a)  Foreign exchange risk 
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with
respect to the UK pound and the euro. Foreign exchange risk arises from future commercial transactions.
(b)  Credit risk 
The Group has no significant concentrations of credit risk and has policies in place to ensure that sales are made to customers
with an appropriate credit history.
(c)  Liquidity risk 
Prudent liquidity risk management implies maintaining sufficient cash and available funding through an adequate amount of
committed credit facilities. The Group ensures it has adequate cover through the availability of bank overdraft and loan facilities. 
(d)  Cash flow and interest rate risk 
The Group finances its operations through a mix of cash flow from current operations together with cash on deposit and bank and
other borrowings. Borrowings are generally at floating rates of interest and no use of interest rate swaps has been made.
(e)  Fair value estimation
The nominal values less impairment provision of trade receivables and payables are assumed to approximate their fair values. The
fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current
market interest rate that is available to the Group for similar financial instruments.
1.13 Deferred Tax
Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the consolidated financial statements. 26 International Medical Devices plc Annual Report & Accounts 2006
Notes to the Consolidated Financial Statements
continued 
2. Revenue analysis
2006 2005
Geographical analysis of revenue: £000 £000
United Kingdom 3,777 —
Europe 40 —
3,817 —
2006 2005
Analysis of revenue stream: £000 £000
Surgical and Acute 1,708 —
Aged and Home Care 398 —
Cardiac and Respiratory 559 —
Consumables 1,152 —
3,817 —
The Group has one main business segment; the above analysis by revenue stream is provided for information purposes only.
3. Employee information
Staff costs for the Group during the year (including Directors)
Group Company
2006 2005 2006 2005
£000 £000 £000 £000
Wages and salaries 871 40 225 40
Social security costs 118 5 22 5
Pension costs 17 — — —
1,006 45 247 45
In addition, a share-based charge was made to the Consolidated Income Statement amounting to £35,000 as detailed in Note 17.
The average number of employees (including Executive Directors) employed by the Group during the year was as follows:
Group Company
2006 2005 2006 2005
number number number number
Directors 4 2 4 2
Sales staff 8 — — —
Administration 11 — — —
23 2 4 2 27 www.imd-plc.com
4. Loss from operations 
Loss from operations has been arrived at after charging:
Group
2006 2005
£000 £000
Depreciation
— owned assets 45 —
— assets held under operating leases
Auditor’s remuneration:
Audit services
— Group 39 —
— Company 15 9
Non-audit services 51 —
Foreign exchange (gain) (24) —
5. Loss of parent Company
As permitted by section 230 of the Companies Act, the profit and loss account of the parent Company is not presented as part of these
financial statements. The parent Company’s loss for the financial year amounted to £545,000.
6. Restructure costs
Group Company
2006 2005 2006 2005
£000 £000 £000 £000
Restructuring charges in relation to closure of the 
Wallingford warehouse unit, and relocation of 
administrative functions 85 — — —
85 — — —
7. Taxation
2006 2005
£000 £000
Tax on loss on ordinary activities — current tax — —
— —
The tax is assessed on the profit on ordinary activities for the year, and is lower than at the standard rate of UK corporation tax of 30%
(2005: 30%), as explained below:
2006 2005
£000 £000
Loss on ordinary activities before taxation (360) (317)
Loss on ordinary activities multiplied by 30% (108) (95)
Expenses not deductible for tax purposes 9 6
Depreciation in excess of capital allowances — —
Carried forward 99 89
Total current tax — —
There is no tax charge for the year, due to availability of losses for offset by Group relief against other Group company profits. As at 
31 August 2006, the Group had approximately £600,000 tax losses available, subject to agreement with HM Revenue & Customs,
for relief against future trading profits.
There are no material deferred tax balances as at 31 August 2006 and at 31 August 2005. 28 International Medical Devices plc Annual Report & Accounts 2006
Notes to the Consolidated Financial Statements
continued 
8. Intangible assets
Intellectual
Goodwill Property Total
Group £000 £000 £000
Cost or valuation
At 1 September 2005 — 7,953 7,953
Additions 4,924 48 4,972
Additions through acquisition 3,750 478 4,228
At 31 August 2006 8,674 8,479 17,153
Accumulated amortisation
At 1 September 2005 ———
Charge for the year ———
At 31 August 2006 ———
Carrying amount
At 31 August 2006 8,674 8,479 17,153
At 31 August 2005 — 7,953 7,953
Intellectual
Property Total
Company £000 £000
Cost or valuation
At 1 September 2005 7,953 7,953
Additions 48 48
Additions through acquisition ——
At 31 August 2006 8,001 8,001
Accumulated amortisation
At 1 September 2005 ——
Charge for the year ——
At 31 August 2006 ——
Carrying amount
At 31 August 2006 8,001 8,001
At 31 August 2005 7,953 7,953
9. Property, plant and equipment
Fixtures,
Fittings and Motor Leasehold Plant and
Equipment Vehicles Property Machinery Total
Group £000 £000 £000 £000 £000
Cost or valuation
At 1 September 2005 —————
Additions through acquisitions 97 64 41 85 287
Disposals — — — (9) (9)
At 31 August 2006 97 64 41 76 278
Accumulated depreciation
At 1 September 2005 —————
Charge for the year 17 14 3 11 45
At 31 August 2006 17 14 3 11 45
Carrying amount
At 31 August 2006 80 50 38 65 233
The parent Company did not own any property, plant or equipment at 31 August 2006 or at 31 August 2005. 29 www.imd-plc.com
10. Acquisition of subsidiary undertakings
During the period the Company acquired 100% of the issued share capital of the following companies for a total consideration of
£8,494,000.
The following table sets out the book values of the identifiable assets and liabilities acquired. In the opinion of the Directors there is no
material difference between the book value and the fair value of the assets acquired. 
RME EMS
Meddis Holdings Medical
Limited Limited Limited Total
£000 £000 £000 £000
Non-current assets
Intangible 11 3,757 460 4,228
Tangible 69 115 103 287
Current assets
Receivables 232 2,167 281 2,680
Inventories 79 1,091 331 1,501
Cash and cash equivalents 93 196 (90) 199
Total assets 484 7,326 1,085 8,895
Payables
Trade payables 252 1,786 395 2,433
Accruals 135 1,750 405 2,290
Non-current liabilities — 193 409 602
Total liabilities 387 3,729 1,209 5,325
Net assets/(liabilities) 97 3,597 (124) 3,570
Satisfied by
Cash consideration 263 2,086 284 2,633
Shares 250 3,461 300 4,011
Contingent consideration — 800 550 1,350
Loan notes — 500 — 500
Total consideration 513 6,847 1,134 8,494
Goodwill 416 3,250 1,258 4,924
Net cash outflows in respect of the acquisition comprised:
RME EMS
Meddis Holdings Medical
Limited Limited Limited Total
£000 £000 £000 £000
Cash consideration (263) (2,086) (284) (2,633)
Cash acquired 93 196 (90) 199
(170) (1,890) (374) (2,434)
11. Inventories
Group Company
2006 2005 2006 2005
£000 £000 £000 £ 000
Raw materials and consumables 1,719 — — —
1,719 — — — 30 International Medical Devices plc Annual Report & Accounts 2006
Notes to the Consolidated Financial Statements
continued 
12. Payables
Group Company
2006 2005 2006 2005
Less than 1 year £000 £000 £000 £ 000
Bank overdraft 79 — — —
Bank loans 350 — — —
Convertible loan note 250 — 250 —
Trade payables 2,097 80 140 80
Amounts owed to Group undertakings — — 533 —
Other taxes and social security 256 8 — 8
Other payables 558 152 209 152
Accruals and deferred income 132 25 — 25
3,722 265 1,132 265
13. Payables: Amounts falling due after more than one year
The following amounts are repayable by instalments:
Group Company
2006 2005 2006 2005
£000 £000 £000 £ 000
Obligations under finance leases and hire purchase contracts
Repayable between one and two years 5 — — —
Repayable between two and five years 21 — — —
26 — — —
Bank loans
Repayable between one and two years 400 — — —
Repayable between two and five year 900 — — —
1,300 — — —
The bank loan is payable in quarterly instalments of £100,000. The loan is secured with fixed and floating charges over certain Group
assets, together with a debenture over the assets of the parent Company. Interest is charged at a rate of 1.5% above HBOS base rate.
14. Finance commitments
Annual commitments under non-cancellable operating leases relating to property are as follows:
Group Company
2006 2005 2006 2005
£000 £000 £000 £ 000
Expiry date
— within one year 65 — — —
— between two and five years 221 — — —
— after five years 27 — — —
313 — — — 31 www.imd-plc.com
15. Loss per share 
Group
2006 2005
Loss £000 £000
Loss for the purpose of calculating basic loss per share (360) (317)
Number of shares 2006 2005
Weighted average number of ordinary shares for the purposes of basic and diluted earnings per share 171,314,367 25,313,003
16. Share capital 
Group Company
2006 2006
£ £ 
Authorised:
Ordinary shares of £0.01 each 400,000,000 400,000,000
Issued and fully paid:
Ordinary shares of £0.01 each 248,919,987 248,919,987
Reported as at 31 August 2005 124,493,400 124,493,400
Issue of shares 124,426,587 124,426,587
Reported as at 31 August 2006 248,919,987 248,919,987
Movements on share capital and share premium accounts are shown in the statements in changes in equity on page 20. 32 International Medical Devices plc Annual Report & Accounts 2006
Notes to the Consolidated Financial Statements
continued 
17. Share-based payments
The Group has issued share options under a unapproved HM Revenue and Customs share option scheme. Movements in share options
over £0.01 ordinary shares in the Company in the year were as follows:
Number of options
As at 1 September 2005 —
Options granted in the year 16,666,666
Options lapsed in the year —
Options exercised in the year —
As at 31 August 2006 16,666,666
The fair value of options granted during the year was estimated using the Black-Scholes pricing model with the following significant
assumptions:
Expected life (years) 0.5
Risk-free interest rate 4.5%
Volatility 15%
Weighted average fair value per option £0.0026
The total share-based payment charge for the year was £35,000.
18. Warrants
On 24 June 2005, the Company adopted a warrant instrument constituting of £3,000,000 worth of warrants. These warrants became
exercisable on 5 April 2006 when the Company raised equity moneys. All warrants lapsed, following this equity placement. The Company
has no warrants in issue as at 31 August 2006. 
19. Related party transactions
Other than those disclosed in the Directors’ Report and the Report of the Remuneration Committee, there were no related party
transactions during the year. Designed and printed by www.jonesandpalmer.co.uk First choice for
healthworkers
33 St James’s Square
London
SW1Y 4JS
T: +44 (0) 20 3008 4960
F: +44 (0) 20 3008 4731
www.imd-plc.com
International Medical Devices plc
Stock Exchange Code: INT.L