Stepping Up
Annual Report and Accounts 2002
Bett Brothers plc
9 Cox Street
Dundee DD3 9HA
Tel 01382 884191
Fax 01382 833918
www.bett.co.uk
Bett Brothers plc Annual Report and Accounts 2002 Designed and produced by Tayburn Corporate
Annual General Meeting 19 December 2002
Payment of ﬁnal dividend 20 January 2003
Announcement of half-year results Late April 2003
Payment of interim dividend 21 July 2003
Preliminary announcement of full-year results Late October 2003
Shareholders’ Calendar
1 Financial Highlights
2 Chairman’s Statement
3 Chief Executive’s Overview 
4 Operating and 
Financial Review
16 Board of Directors
16 Divisional Directors 
and Company Secretary
17 Directors and Advisers
18 Directors’ Report 
22 Remuneration Report
by the Board
25 Five Year Summary  
26 Consolidated Proﬁt 
and Loss Account
26 Statement of Total
Recognised Gains and
Losses 
26 Note of Historical Cost
Proﬁts and Losses 
27 Consolidated 
Balance Sheet
28 Company Balance Sheet 
29 Consolidated 
Cash Flow Statement
29 Reconciliation of Net
Cash Flow to Movement 
in Net Debt 
30 Notes to the Accounts  
44 Independent 
Auditors’ Report  
IBC Shareholders’ Calendar 
Contents 1 Bett Annual Report and Accounts 2002
Highlights
Another record proﬁt has been
achieved with increased returns 
for shareholders. We have also
invested for future growth.
2002 2001 change
Turnover (including discontinued
operations and share of joint ventures) £116.3m £91.2m up 27%
Proﬁt before taxation £17.2m £10.1m up 71%
Earnings per share 87.00p 53.27p up 63%
Dividend 15.20p 12.75p up 19%
Gearing percentage 29.0% 24.0%
Dividend cover 5.6x 4.2x up 33%
Shareholders’ funds £62.2m £50.7m up 23%
Turnover 
£116m
Proﬁt before
taxation
£17.2m
Shareholders’ 
funds
£62.2m
00 01 02
43.7
50.7
62.2
00 01 02
81.0
91.2
116.3
00 01 02
8.8
11.7
20.3
Shareholders’ funds £m Turnover £m
including share 
of joint ventures
Proﬁt before interest 
by division £m
before central costs and
discontinued activities
Bett Homes
Bett Properties 2 Bett Annual Report and Accounts 2002
Chairman’s Statement
Iain Bett Chairman
8 November 2002
The year was one of outstanding progress based on signiﬁcant
expansion and increasing focus. Group turnover (including share
of joint ventures) rose to £116m from £91m in 2001, a major 
step up in activity. 
Group pre-tax proﬁts at £17.2m were 71% ahead of 2001 (£10.1m)
being another record year . Each of our divisions has delivered an
excellent result. Operating proﬁts in Housing were £15.3m (2001 –
£8.9m) an increase of 72% and in Property operating proﬁts of
£5.1m compared with £2.9m in 2001, a rise of 77%. 
Overall basic earnings per share of 87.0p were up by 63% from
53.3p in 2001.
We have been following a strategy consistently for many years of
expanding each of our core businesses of housing and property
development. Our basic challenge was to replace the contribution
from Bett Inns, which was sold at the end of last year and this 
has been substantially exceeded.
The market in housing has been supported by low interest rates 
and strong demand. I am pleased with our increased activity, 
having sold 916 units in 2002 compared with 644 units in 2001. 
Most importantly this has been combined with higher proﬁtability 
and an enhancing of our reputation in each area. 
The market was much more subdued in commercial property.
Nevertheless as well as achieving a considerable proﬁt contribution
we continued to build a strong foundation for the future by fostering
long-term joint venture relationships.
Outlook We anticipate that our markets will continue to provide 
a satisfactory environment and an opportunity for future growth.
There has of course been considerable speculation on the future of
the housing market and the economy in general. We recognise that
there may be a slowdown particularly in some areas for example in
the South East which have seen very signiﬁcant rises but where the
economy is more volatile. However we believe that the combination
of continuing high employment and low interest rates, an improving
economy and reasonable affordability together with our strong 
land bank will provide a platform for further sensible expansion.
This is reinforced by a strong forward sales position where we have
recorded almost 700 forward sales for the current year.
Our portfolio of deals in commercial property is well spread
although market conditions and timing may result in a satisfactory
but more average return.
Our balance sheet gearing at the year end was 29% which will 
support a further stepping up of activity in this new year.
Dividend We continue to seek to balance a progressive dividend 
policy with sensible funding for growth. In all the circumstances the
Board is recommending a ﬁnal dividend of 11.00p, an increase of 19%
making a total of 15.20p for the year . The total dividend is covered 
5.6 times.
My thanks are due to all those who have worked in our teams 
and whose efforts and commitment have produced such a
successful year. 3 Bett Annual Report and Accounts 2002
Chief Executive’s Overview
Ronnie Hanna Chief Executive
8 November 2002
Over the last ten years we have moved to focus the business 
on housing and commercial property and to balance this with
the potential and opportunity for growth. 
Diversiﬁed activities have gradually been sold off in line with 
the challenge of obtaining the right price and the objective of
replacing the income with growth from core activities. Bett Inns,
the last remaining diversiﬁcation, was a valuable contribution 
to the Group over many years but we considered that a sale at
the end of last year was entirely appropriate. We have now
achieved our focus as can be seen from the diagram below.
The competitive demands in property, both housing and
commercial development, are naturally increasing. The industry
itself is changing and needs to adjust to a tougher statutory 
and planning environment but also, as in many other markets, 
an increasingly discerning customer.
We are now able to concentrate fully on these issues and are
committed to competing successfully.
Our strategy remains to deliver the potential from our existing
activities and to seek further growth opportunities, including 
a wider geographic coverage. Timing is critical both from a
management and a market perspective.
We now have a truly focused base from which to achieve this.
Bett Homes
Bett Homes is divided into 
three geographical divisions: 
Scotland 
North West 
North East and
Bett Partnerships
who work with local authorities
and housing associations to
provide affordable homes. 
Bett Properties
Operates throughout the UK,
frequently with joint venture
partners assembling a strong
and appropriate team for 
each project.
Bett 
A TRULY FOCUSED PROPERTY GROUP 4 Bett Annual Report and Accounts 2002
Extending the range
An important component of our increased activity in 
Housing has been the extension of the housing range – 
in both directions. In Property, we are ﬂexible and deal
driven rather than concentrating on a particular sector .
The Braemar
Combines a distinctive exterior 
with a spacious and elegant layout.
Stobcross, Glasgow
Completion of a successful change of 
land use from commercial to residential.
The Lomond 
An example of high quality, value-for-money 
homes built in partnership with local authorities.
House sales 
and completions
are up and our
average selling
price
*
has risen 
to £125,000.
* excluding contract purchases EXTENDING THE RANGE 6 Bett Annual Report and Accounts 2002
Improving the package
Improving the package of what we offer is a continuous 
process and challenge – and includes product design, 
site layout, speciﬁcation detail, product presentation 
and customer service.
Customer service
The challenge to achieve 
even higher standards.
Product design
A continuous process.
Creating communities
Through practical, 
customer-friendly 
site layouts.
We are
encouraging 
a greater bespoke
element in design. IMPROVING THE PACKAGE 8 Bett Annual Report and Accounts 2002
Developing nationally
There has been signiﬁcant geographic expansion in recent
years. In Housing, there are strong bases in Scotland, 
North West and North East England. In Property, there are
projects in a variety of locations in the UK. Our approach 
is to continue to pursue a sensible growth strategy.
Crook, Durham
The four bedroom Conway 
is creatively designed 
for spacious living.
Glossop, Derbyshire
Side view of the Thurso and Ardbeg
which pay homage to the Arts and Crafts
principles of craftsmanship and respect
for materials.
Bromsgrove
An industrial and distribution
scheme on 17.5 acres.
Bett Homes 
Bett Properties  DEVELOPING NATIONALLY 10 Bett Annual Report and Accounts 2002
Operating and Financial Review
North West 
turnover more 
than doubled 
at £27.5m.
HOUSING 
In 2002 the total turnover in housing was £106.3m from 
916 completions. This includes £6.7m and 123 units in 
our Partnership division from contract purchases which, 
if excluded, would give an average selling price of £125,000
(2001 – £120,000). The range of selling prices in the year 
was £50,000-£310,000.
Operating margin, excluding contract purchases, was 14.8%
compared with 11.5% in 2001.
Our land bank provides the base for future growth being 4,700
plots zoned or better plus 6,100 plots under option at the year
end. This compares with just over 3,000 plots zoned plus 
5,500 option plots in 2001.
Our efforts throughout the division have been concentrated 
on continuing the challenge to obtain ongoing improvements 
in the design of our product range, the layout and appeal of 
our developments, the presentation of our product and higher
standards of customer care. Strong progress has been 
achieved in each area. 
We see this clearly as a continuous process and while some of
the results can be seen on site, more will be evident in the new
year. We recognise that a successful future demands that we 
are ﬂexible and encouraging of change in, for example, a greater
bespoke element in design. As part of that approach we have
successfully launched a variety of customising packages,
including technology, interior design and landscaping.
00 01 02
61.9
77.4
106.3
00 01 02
6.2
8.9
15.3
Bett Homes 
Turnover £m
Bett Homes 
Operating Proﬁts £m 11 Bett Annual Report and Accounts 2002
Operating and Financial Review
Our drive for improving quality of build is hampered by the
continuing national shortage of appropriately skilled tradesmen.
There is a need for many parties to encourage the attraction of
the industry and of acquiring a trade. As part of the solution we
are targeting an increasing proportion of factory built elements.
In Scotland all of our houses are of timber frame construction
although we ﬁnd that in England this is not yet viable. Canopies,
dormers and door sets are now factory assembled and we
continue to evaluate other areas, for example plumbing.
I should record some of the recognition our teams received
during the year:
In a recent survey of customer satisfaction carried out
independently by MORI for the Department of Trade and 
Industry we were among the leading builders on a national
basis. We received two NHBC Pride in the Job awards, 
for our sites in Crewe and Moniﬁeth, near Dundee.
We were voted Housebuilder of the Year from a group of 
57 housebuilders covering the North West, North East and
Yorkshire.
We recorded 48% of sales on brownﬁeld sites and 52% on
greenﬁeld compared with 38% and 62% in 2001.
Each region expanded during the year – some of the highlights
were:
Scotland We operated on 15 sites in Scotland (2001 – 13 sites) 
with a presence in each of the main markets of Aberdeen,
Dundee, Stirling, Glasgow and Edinburgh, all from our central
base in Stirling. Total units were 504, up from 465 units in 2001
with an average selling price of £123,000 (2001 – £132,000).
Voted Housebuilder
of the Year from a
group covering 
North West, North
East and Yorkshire.
OPERATING AND FINANCIAL REVIEW 12 Bett Annual Report and Accounts 2002
Operating and Financial Review
North East are 
well placed to 
take a big step 
up this year .
North West As was anticipated a large increase in activity in the
North West brought about a signiﬁcant beneﬁt from operational
gearing with turnover more than doubled to £27.5m from 203
units compared with £10.6m from 89 units. Average selling price
was £135,000 against £120,000 in 2001.
This region is maturing into having a meaningful presence in 
the area. Not only has its growth been impressive, the team 
has been increasingly successful in securing some excellent
new sites which provide the potential for further expansion.
During the year we operated on 7 sites (2001 – 4 sites) with a 
total of 10 sites scheduled for 2003. We are well set to tackle 
the undoubted potential of the area.
North East 2002 was the ﬁrst year’s trading from our Newcastle
base. A very creditable and proﬁtable performance has been
achieved from 59 units on 3 sites at an average selling price of
£129,000.
We are encouraged by this successful start and the fact that we
are well placed to make a big step up in activity in this new year.
We expect to operate on 7 sites and like the North West region 
to deliver strong ﬁnancial beneﬁts from this planned growth.
Partnerships Our Partnership business at present operates
exclusively in Scotland where in a very short time it has
established itself as an important operator not only working 
in partnership with housing associations and local authorities 
to provide affordable housing but also in trading on its own
account at the lower end of the market. 9 sites were in operation
during the year from which 150 units were produced (2001 – 
90 units). Prospects here are also very good. There is continuing
momentum from our agreement with West Lothian Council on 
a project valued at £26m but also from our status as preferred
developer for a large £100m longer term redevelopment project
in Glasgow – all of which is supported by several small sites. 13 Bett Annual Report and Accounts 2002
Operating and Financial Review
The Property
portfolio provides 
a sound base 
for a continued
contribution.
PROPERTIES
In what was an excellent year despite some difﬁcult 
trading conditions Bett Properties produced operating 
proﬁt of £5.1m (2001 – £2.9m). A major part of this was
achieved in the ﬁrst half as previously reported, with 
a substantial contribution from the last phase of our 
successful Stobcross (Glasgow) project.
Although the market was not as active as we would have 
wished good progress was made in most of our projects.
Bromsgrove – an industrial and distribution scheme on 
17.5 acres. We completed the infrastructure and made 
our second sale.
Newcastle – a scheme for industry and distribution on 
47 acres near the Tyne Tunnel. After considerable planning
delays infrastructure work was commenced which has 
aroused the interest of potential occupiers.
Warrington – construction work was completed on two
distribution units of 26,000ft
2
and 44,500ft
2
on this site in a
prominent position close to the M62. Several parties have
expressed interest in the buildings.
Our joint venture company B & S Ventures continues to operate
successfully in the south of England notably in the industrial
estates held at Littlehampton, Newhaven and Wallingford.
The income generated from the joint venture ofﬁce investment
portfolio originally acquired for £27.8m has continued to 
improve providing the opportunity for judicious disposals.
A number of new development opportunities have been 
secured including a joint venture with Scotmid for 100,000ft
2
of ofﬁces in the prime Edinburgh ﬁnancial district.
The total portfolio provides a sound base for a continued
contribution. The timing as ever is difﬁcult to predict due 
to the size and nature of the projects.
00 01 02
8.7
5.8
10.0
00 01 02
2.5
2.9
5.1
Bett Properties 
Turnover £m
including share 
of joint ventures
Bett Properties 
Proﬁt before interest £m 14 Bett Annual Report and Accounts 2002
Operating and Financial Review
OPERATING RESULTS 
In the year to 31 August 2002 proﬁt before tax was £17.2m
compared with £10.1m in the previous year on turnover
(excluding share of joint ventures) of £114m up from £87m
(including £8m from the discontinued operation of the 
Inns division) in the year to August 2001.
The Housing division sold 916 units producing an operating proﬁt
of £15.3m compared with 644 units and operating proﬁt of £8.9m
in the previous year. Operating margin increased signiﬁcantly
from 11.5% in 2001 to 14.4% in the year under review.
The Property division increased proﬁt before interest to £5.1m
from £2.9m previously. A signiﬁcant proportion of the current
year proﬁt was generated from the sale of the last phase of the
successful Stobcross (Glasgow) project.
The Inns division was sold to management on 3 September 2001
for a cash consideration of £13.0m plus the net current asset
value, giving rise to a gain after expenses of £0.5m over the 
net asset value.
Interest Despite a signiﬁcant investment in work in progress,
there was not a meaningful rise in interest charges during the
year. The charge of £2.2m was £0.1m higher than the previous
year. The sale of the Inns division and the further fall in interest
rates contributed to this situation. Interest cover was 8.6 times
(2001 – 5.7 times).
A ﬁxed rate hedge on £5m at 5.4% expired in June 2002. 
An additional ﬁxed rate hedge of £5m at 5.6% was in place
during the year and expires in June 2003.
The remainder of the Group’s borrowings is exposed to changes
to the variable rate of interest. Opportunities to minimise or
eliminate this risk are monitored on an ongoing basis. The 
Group enters into interest rate swaps after taking into account
anticipated future interest rate movements and borrowing
requirements.
Taxation The effective rate of tax for the year was 20% compared
with 16% in the previous year. The Group continues to beneﬁt
from signiﬁcant tax losses which serve to reduce the effective
rate of tax to 75% of the standard rate. The adoption of FRS 19
has resulted in the 2001 effective rate of tax reducing from 22%
to 16%. More details are given in note 8.
Earnings and dividend per share Basic earnings per share
increased from 53.27p (as restated for the adoption of FRS 19)
to 87.00p. The Board has recommended a ﬁnal dividend of 11.00p
making a total dividend for the year of 15.20p, an increase of
19.2%. Dividend cover is 5.6 (2001 – 4.2).
59.0
71.1
73.1
87.1
114.1
98 99 00 01 02
Turnover £m
including discontinued 
operations but excluding 
share of joint ventures
7.45
10.50
11.55
12.75
15.20
98 99 00 01 02
Dividend pence 15 Bett Annual Report and Accounts 2002
Operating and Financial Review
Cashﬂow A further signiﬁcant investment in work in progress,
which includes land for future development, was reﬂected in 
an increase in net debt of £5.8m (2001 – increase of £9.4m)
although the level of debt remains comfortably within acceptable
boundaries. 
The investment in work in progress reﬂects the continuing
growth in the housebuilding and properties businesses.
Net debt At the end of the year, the Group had net debt of
£18.2m (2001 – £12.4m) which represents gearing of 29% 
(2001 – 24%). Given the nature of the Group’s business, this is 
an unrepresentative position and gearing averaged 46% (2001 –
42%) during the year. The Group had negotiated bank facilities
totalling £75m, including a revolving credit facility of £40m which
is available until 31 January 2005, with the balance on overdraft
facilities. The variable rate of interest is broadly 1% above base
rate and all bank covenants were complied with throughout 
the period.
Return on capital Total shareholders’ funds at the end of the
year amounted to £62.2m, an increase of £11.5m or 22.6%. This
represents a net asset value of £3.90 per share (2001 – £3.21).
The total return on capital employed, based on the average 
of the net assets employed at the beginning and end of the 
year and proﬁts before interest earned in the year was 34%
(2001 – 26%).
FRS 17 In the previous year, the Accounting Standards Board
issued a new standard – FRS 17 ‘Retirement Beneﬁts’. The Group
has adopted the transitional disclosure requirements in the year
to 31 August 2002 which include disclosure of:
•the major actuarial assumptions used for the actuarial
valuation;
•the fair value of the assets in the scheme;
• the present value of the liabilities of the scheme;
•the expected rate of return at the balance sheet date; and
•the contribution rate for the year.
FRS 19 A further new standard – FRS 19 ‘Deferred Taxation’ – 
has been fully implemented this year. This standard requires 
full recognition to be made for deferred tax liabilities and
recognition of assets if it is considered more likely than not 
that there will be sufﬁcient proﬁts from which the reversal 
of the underlying differences can be deducted.
All 2001 comparatives, where applicable, have been restated 
to take account of FRS 19. More details are given in notes 
8 and 14.
219.9
255.5
277.1
320.9
389.8
98 99 00 01 02
Net asset per share pence
33.2
39.0
43.7
50.7
62.2
98 99 00 01 02
Shareholders’ funds £m 16 Bett Annual Report and Accounts 2002
Board of Directors
Divisional Directors and Company Secretary
Iain Bett Ronnie Hanna
Graham Webster Alistair Macdiarmid
Ian Townsend Sandy Anderson
Kareen Davidson Iain McGouldrick Steve Grifﬁn Ian Baird
Nick Uttley Ken Haldane Jim Kirkpatrick Jim McGowan
Richard Kelly David Robinson
Gary Suiter Eddie Mason
David Barlow Michaela Lancaster 17 Bett Annual Report and Accounts 2002
Directors and Advisers
EXECUTIVE
ICR Bett* Age 56
The son of the original chairman of Bett Brothers plc. Joined 
the Company in 1963 and was made a director in 1966. Became
chairman and joint managing director in 1982 and on the
appointment of Mr R G Hanna as chief executive in February
1992, became executive chairman.
R G Hanna CA Age 60
Appointed as director and chief executive in February 1992.
Formerly joint managing director of Cala plc, he is a non-
executive director of Edinburgh High Income Trust plc and
chairman of Glasgow Income Trust plc.
IT Townsend FRICS Age 53
Commenced employment in the Group in 1974 and was
appointed a director of Bett Properties in 1981 and managing
director in 1993. He was appointed to the Board of Bett 
Brothers plc in May 1989.
A Anderson Age 51 
Joined the Group in September 1996 as managing director of
Bett Homes and was appointed to the Board of Bett Brothers plc
on 1 September 1998. He was promoted to the position of
divisional managing director on 1 September 2001. Currently
vice-chairman of Homes for Scotland, he is also a member of
the NHBC Scottish Committee and the Building Standards
Advisory Committee at the Scottish Executive.
NON-EXECUTIVE
G H Webster FRICS* Age 62
The senior independent director who was appointed as 
non-executive director in August 1992. A chartered surveyor, 
he is a non-executive director of a number of companies
including The Scottish Friendly Assurance Society Limited 
and Forth Ports plc.
A H Macdiarmid* Age 66
Appointed as non-executive director in March 1996. A chartered
accountant, formerly an executive director of Coats Viyella plc,
he is a non-executive director of a number of private companies.
*Members of the Audit and Remuneration Committees.
DIVISIONAL DIRECTORS
Housebuilding and 
Related Activities
Scotland
K Davidson
J M Kirkpatrick 
K D Haldane
JJ McGowan
IJMcGouldrick
North West
N Uttley
RI Kelly
S B Grifﬁn
M D Lancaster
North East
D S Barlow
Partnerships
IC Baird
Properties
D Robinson
Information Technology
G M Suiter
COMPANY SECRETARY
E R Mason FCA
REGISTERED OFFICE
Bett Brothers plc
9 Cox Street
Dundee DD3 9HA
Tel: 01382 884191
Fax: 01382 833918
REGISTRARS AND
TRANSFER OFFICE
Lloyds TSB Registrars Scotland
PO Box 28448
Finance House
Orchard Brae
Edinburgh EH4 1WQ
BANKERS
Bank of Scotland
New Uberior House
Earl Grey Street
Edinburgh EH3 9BN
STOCKBROKERS
Bell Lawrie White
7 Drumsheugh Gardens
Edinburgh EH3 7QH
AUDITORS
Deloitte & Touche
Edinburgh
SOLICITORS
Dickson Minto WS
11 Walker Street
Edinburgh EH3 7NE 18 Bett Annual Report and Accounts 2002
Directors’ Report
The directors present their annual report and the audited ﬁnancial statements for the year ended 31 August 2002.
BUSINESS REVIEW A review of the Group’s principal business activities for the year ended 31 August 2002 is
presented on pages 3 to 15. Group turnover and proﬁt before interest are analysed in note 3. 
RESULTS AND DIVIDENDS
£000 £000
Group proﬁt for the ﬁnancial year 13,682
Dividends paid and proposed
– interim paid of 4.20p per share (2001 – 3.65p per share) (668)
– ﬁnal proposed of 11.00p per share (2001 – 9.10p per share) (1,755) (2,423)
Transferred to retained proﬁts 11,259
DIRECTORS AND THEIR INTERESTS The directors who served during the year, and their interests, are as shown 
in the Remuneration Report. Mr Ian T Townsend and Mr Graham H Webster retire by rotation and are eligible and
willing to stand for re-election at the forthcoming annual general meeting. Mr Townsend has a service contract
which may be terminated by the Company giving one year’s notice (two years’ notice on a takeover of the Company).
Mr Webster was appointed by a letter of appointment which subsists until he is required to retire by rotation.
SUBSTANTIAL SHAREHOLDINGS On 8 November 2002, the following substantial interests in the Company’s
ordinary share capital were registered:
Number of shares Percentage held
Mrs Irene W Bett 1,893,130 11.85%
Mrs Margaret F Bett 785,000 4.91%
Edinburgh Fund Managers plc 635,707 3.98%
Jupiter Asset Management 622,570 3.89%
Albert A Bett’s Executry 552,760 3.46%
EXECUTIVE SHARE OPTION SCHEME At the 1998 Annual General Meeting the Bett Brothers plc 1992 Executive
Share Option Scheme was replaced with the Bett Brothers plc 1998 Executive Share Option Scheme comprising
two parts, an Inland Revenue approved part and an unapproved part. The two parts are identical except where 
the Inland Revenue requirements for approval dictate otherwise, to ensure that the parts operate consistently
wherever possible.
Number of Number of
options options 
outstanding outstanding Option
Date of Grant at 01.09.01 Granted Exercised Lapsed at 31.08.02 price
9 December 1993 15,000 –(15,000) – – 101p
2 December 1994 20,000 –(10,000) – 10,000 179p
7 December 1995 10,000 ––– 10,000 178p
9 December 1996 17,000 –(17,000) – – 172p
5 December 1997 10,000 –(10,000) – – 154p
17 May 1999 120,000 –(65,000) (10,000) 45,000 178.5p
18 November 1999 48,000 –– (10,000) 38,000 223.5p
13 November 2000 100,000 –– (10,000) 90,000 199.5p
17 December 2001 – 90,000 – – 90,000 270p
340,000 90,000 (117,000) (30,000) 283,000
Options under the Scheme are normally exercisable three years after the date of grant and for a period of seven
years thereafter. 
Between 1 September 2002 and 8 November 2002, no options under the Scheme lapsed or were exercised.
SAVINGS RELATED SHARE OPTION SCHEME The Bett Brothers plc Savings Related Share Option Scheme was
approved by shareholders on 17 December 1993 and is approved under the Income and Corporation Taxes Act 1988.
The following options have been granted under the scheme: 19 Bett Annual Report and Accounts 2002
Directors’ Report
Outstanding Granted Lapsed Exercised Outstanding
at 01.09.01 in year in year in year at 31.08.02
Granted 09.01.97 at 132p
Number of persons 17 – (1) (16) –
Number of shares 38,149 – (906) (37,243) –
Granted 08.01.98 at 129p
Number of persons 15 –– (3) 12
Number of shares 51,877 –(1,925) (5,562) 44,390
Granted 23.12.98 at 116p
Number of persons 27 – (4) (4) 19
Number of shares 120,320 –(26,661) (17,265) 76,394
Granted 21.12.99 at 187p
Number of persons 36 – (6) (4) 26
Number of shares 98,519 –(23,712) (2,451) 72,356
Granted 22.12.00 at 173p
Number of persons 54 – (20) (3) 31
Number of shares 98,531 –(33,642) (721) 64,168
Granted 24.12.01 at 216p
Number of persons – 62 (3) – 59
Number of shares – 103,921 (4,901) – 99,020
Options under the Scheme are exercisable either during the period of six months following the completion of the
related ﬁve year SAYE contract which is 1 March 2003, 1 April 2004, 1 April 2005, 1 April 2006 and 1 April 2007
respectively, or when employees have left the Company more than three years since the option grant date.
Between 1 September 2002 and 8 November 2002, 9,777 options have been exercised at 116p per share. No options
had lapsed.
PURCHASE OF OWN SHARES The Company has authority to make market purchases of shares in the Company 
up to a maximum number of 1,596,067 shares. This authority expires on 18 March 2004 and renewal of this
authority will be sought at the forthcoming annual general meeting.
FIXED ASSETS Information relating to changes in tangible ﬁxed assets is given in note 11 to the accounts.
The Group’s interests in investment properties were valued on an open-market existing use basis as at 31 August
2002 and the resulting valuations have been incorporated in the accounts.
CHARITABLE AND POLITICAL CONTRIBUTIONS The Group contributed £11,247 (2001 – £1,100) to charities during
the year. There were no political contributions in the year (2001 – £ nil).
CORPORATE GOVERNANCE The Company has complied with the provisions of the Code of Best Practice set out 
in section 1 of the Combined Code on Corporate Governance, except for the following matters:
Code Provision B.2.2 requires that the Remuneration Committee should consist exclusively of non-executive
directors. The Remuneration Committee is comprised of the two non-executive directors and the chairman. 
The reason for this non-compliance is due to the practical difﬁculty of a company of this size fulﬁlling such a
requirement. The Board considers that the remuneration received by Iain Bett as Board chairman does not
materially inﬂuence his judgement as a member of the Remuneration Committee. His salary and beneﬁts are
determined by the two non-executive directors and Mr Bett is not present for these discussions; and
Code Provision D.3.1 requires that the Board establish an audit committee of at least three directors, all non-
executive. The Audit Committee is also comprised of the two non-executive directors and the chairman. Again, the
reason for non-compliance is due to the practical difﬁculty of a company of this size fulﬁlling such a requirement.
The directors do not believe that the presence of the chairman on this Committee would materially inﬂuence the
judgement of the Audit Committee. 
The Company has applied the Principles of Good Governance set out in section 1 of the Combined Code by
complying with the Code of Best Practice as reported above. Further explanation of how the principles have been
applied is set out below and in the Remuneration Report.
The principal responsibilities of the Board are to agree overall strategy and investment policy, to approve major
capital expenditure, to monitor the performance of the senior management and to ensure that there are proper
internal controls in place. 20 Bett Annual Report and Accounts 2002
Directors’ Report
CORPORATE GOVERNANCE – CONTINUED
The Audit Committee receives and reviews reports from management relating to the interim and annual accounts
and the accounting and internal control systems in use throughout the Group. The committee has unrestricted
access to the auditors.
The Remuneration Committee keeps under review the scale and structure of remuneration of the executive
directors and the terms of their service contracts. The Remuneration Report is presented on pages 22 to 24.
GOING CONCERN On the basis of current ﬁnancial projections and bank facilities available, the directors have 
a reasonable expectation that the Group has adequate resources to continue for the foreseeable future and,
accordingly, consider that it is appropriate to adopt the going concern basis in preparing the accounts.
INTERNAL CONTROL The Board is responsible for the Group's system of internal control and for reviewing its
effectiveness. Such a system 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.
An ongoing process for identifying, evaluating and managing the signiﬁcant risks faced is in place. The Board
regularly reviews the process, which has been in place from the start of the year to the date of approval of this 
report and which is in accordance with the internal control guidance for directors on the Combined Code produced
by the Turnbull working party. Steps are being taken to embed internal control and risk management further into
the operations of the business and to deal with areas of improvement which come to management’s and the
Board’s attention. The key elements of the process are summarised as follows:
• the Board meets on a regular basis to review and assess ﬁnancial and operational performance and to discuss
the management of key business risks and issues. The Board reviews the strategic direction of the Group and
has primary responsibility for identifying the major business risks facing the Group and developing appropriate
strategies, actions and approaches to manage those risks;
•a regular program of risk assessments is undertaken where the business risks which impact the achievement 
of business objectives are evaluated and prioritised. This ensures that the Board and senior management review
and reﬂect upon the overall risk proﬁle facing the Group and that key risks receive the appropriate level of
management attention on an ongoing basis; and
•regular meetings are held by the management teams of each division and ﬁnancial performance and the
management of key business risks are discussed in detail. Actions, responsibilities and targets are set and
performance reviewed at subsequent meetings. The Board is represented on each divisional management team.
The outputs from this process as well as the underlying process itself is regularly reviewed by the Board in order 
to develop and further embed risk management and risk awareness throughout the Group. The key elements of
the system of internal control can be summarised as follows:
• the Group has a management structure designed to provide the shortest lines of communication, with each
division having its own management team with representation from the Board. The Group and each division
operate with clearly deﬁned management roles and responsibilities;
•a comprehensive system is in place for reporting and monitoring divisional performance. Budgets are prepared
by each division and, following a Group review, are considered and adopted by the Board. Forecasts are prepared
and updated quarterly and routinely reported at Board meetings;
• as noted above, regular meetings are held by the Board and the management teams of each division. Financial
performance and the management of key business risks are discussed in detail. Actions, responsibilities and
targets are set and performance reviewed at subsequent meetings;
•clearly deﬁned controls and approval procedures are in place within each division. Purchase of land and other
major capital expenditure require structured Board authority;
•regular external reviews of the adequacy and effectiveness of the system of internal control across the Group
are undertaken; and
•regular reporting is provided to the Board on other Group functions including insurance, taxation, treasury,
secretarial and legal.
In compliance with Provision D.2.1 of the Combined Code, the Board continuously reviews the effectiveness of 
the Group's system of internal control. The key elements of this review process include:
•regular Board and divisional management meetings as described above with detailed review and investigation 
of any variances from budget;
•review by the Board of the outputs of the risk assessment process and ongoing monitoring of the risk proﬁle
facing the business;
•review by the Board of the ﬁndings of the external assessments of internal control undertaken across the 
Group; and
•review by the Audit Committee of the results of the annual audit and half-year results.
The Board reviews the need for an internal audit department on an annual basis. 21 Bett Annual Report and Accounts 2002
Directors’ Report
DIRECTORS’ RESPONSIBILITIES Company law requires the directors to prepare accounts for each ﬁnancial 
year which give a true and fair view of the state of affairs of the Company and Group and of the proﬁt or loss of
the Group for that period. In preparing those accounts, the directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent; and
•state whether applicable accounting standards have been followed.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy 
at any time the ﬁnancial position of the Company and Group and enable them to ensure that the accounts comply
with the Companies Act 1985. They are also responsible for safeguarding the assets of the Company and the 
Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
ANNUAL GENERAL MEETING The notice of the Annual General Meeting, to be held at 10.00am on Thursday 
19 December 2002 at 9 Cox Street, Dundee, is contained in a separate letter from the chairman accompanying 
this annual report.
DISABLED EMPLOYEES Applications for employment by disabled persons are always fully considered, bearing 
in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort
is made to ensure that their employment with the Group continues and that appropriate training is arranged. 
It is the policy of the Group that the training, career development and promotion of disabled persons should, 
as far as possible, be identical with that of other employees.
SUPPLIER PAYMENT POLICY It is the Company’s policy to settle the terms of payment with suppliers when
agreeing each transaction or series of transactions, to ensure that suppliers are made aware of these terms and 
to abide by them. At 31 August 2002, there was the equivalent of 58 days (2001 – 52 days) purchases outstanding.
ENVIRONMENTAL POLICY The Group keeps itself informed of all legislation, regulations and Codes of Practice on
environmental matters that are relevant to its operations. It makes best endeavours to ensure that its personnel
are aware of and adequately instructed in the requirements of this legislation, and takes all other reasonable
actions to ensure compliance.
EMPLOYEE CONSULTATION The Group places considerable value on the involvement of its employees and has
continued to keep them informed on matters affecting them as employees and on the various factors affecting the
performance of the Group. This is achieved through formal and informal meetings. Employee representatives are
consulted regularly on a wide range of matters affecting their current and future interests. The employee share
scheme has been running successfully since its inception in 1994 and is open to all employees. In addition, all
salaried staff receive an annual bonus related to the proﬁtability of their division.
AUDITORS During the year, Arthur Andersen resigned as the Company’s auditors following the agreement it
reached with Deloitte & Touche under which partners and staff from Arthur Andersen joined Deloitte & Touche. 
The directors used their powers under the Companies Act 1985 to appoint Deloitte & Touche as the Company’s
auditors to ﬁll the vacancy created by Arthur Andersen’s resignation. A resolution to re-appoint Deloitte & Touche
as auditors will be put to the Annual General Meeting.
CAPITAL GAINS TAX The middle market quotation of the 20p ordinary shares at 31 March 1982 was 52.5p.
Approved by the Board of Directors and signed on behalf of the Board
E R Mason
Secretary
8November 2002 22 Bett Annual Report and Accounts 2002
Remuneration Report by the Board
As well as complying with the provisions of the Code as disclosed in the Company’s corporate governance
statements, the Board has applied the Principles of Good Governance relating to directors’ remuneration as
described below.
For completeness of presentation this report covers the remuneration of the non-executive as well as the executive
directors, and also related matters such as the interests of the directors in the Company’s shares. It therefore
covers issues which are the concern of the Board as a whole in addition to those which are dealt with by the
Remuneration Committee.
COMPOSITION The Remuneration Committee is appointed by the Board and is composed of the two non-executive
directors, Graham H Webster (Remuneration Committee chairman) and Alistair H Macdiarmid, and Iain C R Bett
(executive chairman of the Board). The Board considers that the remuneration received by Iain Bett as Board
chairman does not materially inﬂuence his judgement as a member of the Remuneration Committee. His salary
and beneﬁts are determined by the two non-executive directors and Mr Bett is not present for these discussions.
No discretionary bonus is paid to Mr Bett, and he does not receive any options under any executive share option
scheme.
The non-executive directors do not hold any share options, nor participate in any bonus or pension schemes; they
have no personal interest in the matters to be decided other than as shareholders and no day-to-day involvement
in running the businesses of the Group. Their fees are determined at an annual meeting of the directors.
Apart from the requirement that Remuneration Committees should consist exclusively of non-executive directors,
the constitution and operation of the Remuneration Committee comply with the Principles of Good Governance
relating to directors’ remuneration.
REMUNERATION POLICY The basic objectives of the Remuneration Committee’s policies are that executive
directors should receive compensation which is appropriate to their level of responsibility and performance, 
and which will attract, motivate and retain executives of the necessary calibre. The Committee also agrees, 
in consultation with Ronald G Hanna, chief executive, the principles underlying remuneration for other senior
executives. 
DIRECTORS’ REMUNERATION
Total Money purchase
excluding pension
Salary/ pensions contributions
fees Beneﬁts Bonuses 2002 2001 2002 2001
£000 £000 £000 £000 £000 £000 £000
Iain C R Bett (Chairman) 101 14 – 115 117 – –
Ronald G Hanna (Chief Executive) 166 16 83 265 249 75 70
Ian T Townsend (Executive Director) 115 11 34 160 151 – –
Steven Lyon (Executive Director) – 
appointed 3.9.01; resigned 14.2.02 30 5 – 35 N/A – N/A
Alexander Anderson (Executive Director) 132 14 66 212 193 – –
Graham H Webster (Non-Executive Director) 18 – – 18 17 – –
Alistair H Macdiarmid (Non-Executive Director) 14 – – 14 13 – –
576 60 183 819 740 75 70
Basic salary The salary of individual executive directors is reviewed at 1 September each year. Account is taken
of individual achievements, any change in responsibilities that may have occurred and the salaries for similar 
roles in comparable companies.
Beneﬁts Certain executive directors receive taxable beneﬁts comprising car, fuel, telephone and healthcare.
Under long-standing contractual arrangements, taxable beneﬁts for Iain C R Bett and Ian T Townsend are
pensionable.
Bonuses Payments under the discretionary bonus scheme for the executive directors are conditional on the
achievement of operating proﬁt and speciﬁc performance targets. Discretionary bonuses are not pensionable 
with the exception of bonuses paid to Ronald G Hanna; this is a long-standing contractual arrangement and
unlikely to be repeated in future appointments. 23 Bett Annual Report and Accounts 2002
Remuneration Report by the Board
Pensions Executive directors joining the Company prior to 1 September 1997 were entitled to become members 
of the Group’s contributory deﬁned beneﬁt pension scheme or, if preferred, to receive payment of a proportion 
of salary into a personal money purchase pension scheme. Executive directors joining the Company after 
1 September 1997 are entitled to join the Group’s personal pension money purchase scheme and receive payment 
of a proportion of salary into the scheme. The Group’s deﬁned beneﬁt pension scheme is designed to provide a
pension of one sixtieth of ﬁnal pensionable salary for each year of completed pensionable service. The pension
contributions shown in the table above reﬂect the actual payments made for those directors who are not members
of the Group’s deﬁned beneﬁt pension scheme. The following directors had accrued entitlements under the
Group’s deﬁned beneﬁt scheme as follows:
Increase in
accrued pension Transfer value Accrued pension Accrued pension
excluding inﬂation of increase 31 August 2002 31 August 2001
£000 £000 £000 £000
Iain C R Bett 29 63 61
Ian T Townsend 75862 55
Alexander Anderson 29 10 8
Steven Lyon – appointed 3.9.01; resigned 14.2.02 26 9* 7
* At 14 February 2002
The pension entitlement shown is that which would be paid annually from normal retirement based on service 
to the end of the year under review.
The transfer value has been calculated on the basis of actuarial advice in accordance with Actuarial Guidance 
Note GN11 less director’s contributions.
Members of both schemes have the option to pay Additional Voluntary Contributions; neither the contributions 
nor the resulting beneﬁts are included in the above table.
Share options The Committee believes that share ownership by executive directors and senior executives
strengthens the link between their personal interest and those of the shareholders. The Group operates an
Executive Share Option Scheme which comprises an Inland Revenue approved part and an Inland Revenue
unapproved part. The most recent grants of options to executive directors were on 17 December 2001. The
Remuneration Committee has initially set a performance condition of options normally only being exercisable 
if the growth of the Company’s earnings per share at least matches the growth in the Retail Prices Index plus 
9 per cent over a three year period.
DIRECTORS AND THEIR INTERESTS The directors who held ofﬁce at 31 August 2002 and their beneﬁcial interests
in the ordinary shares of Bett Brothers plc were as follows:
Number of Number of
shares shares
31 August 2002 31 August 2001
Iain C R Bett 3,181,276 3,181,276
Ronald G Hanna 1,028,018 1,028,018
Ian T Townsend 90,389 90,389
Steven Lyon – appointed 3.9.01; resigned 14.2.02 N/A N/A
Alexander Anderson 59,613 21,000
Graham H Webster 57,200 57,200
Alistair H Macdiarmid 20,000 20,000
Iain C R Bett has a non-beneﬁcial interest in 10,000 shares (2001 – 10,000). In addition, he is an executor of Albert
A Bett’s Executry (2001 – same) and this non-beneﬁcial interest is described on Page 18.
There were no movements in the interest of directors between 1 September 2002 and 8 November 2002. 24 Bett Annual Report and Accounts 2002
Remuneration Report by the Board
DIRECTORS AND THEIR INTERESTS – CONTINUED
The following directors have interests in options under the Executive Share Option Scheme:
––––––––––––––––––––––––––   Number of options ––––––––––––––––––––
Date from
At Granted Lapsed Exercised At Exercise which Expiry
01.09.01 in year in year in year 31.08.02 price exercisable date
Ian T Townsend 10,000 –––10,000 179p 02.12.97 02.12.04
25,000 –––25,000 178.5p 17.05.02 17.05.09
15,000 –––15,000 199.5p 13.11.03 13.11.10
– 15,000 – – 15,000 270p 17.12.04 17.12.11
Steven Lyon – 
appointed 3.9.01; resigned 14.2.02 10,000* –– 10,000 – 154p 5.12.00 5.12.07
10,000* – 10,000 – – 178.5p 17.05.02 17.05.09
10,000* – 10,000 – – 199.5p 13.11.03 13.11.10
Alexander Anderson 17,000 –– 17,000 – 172p 09.12.99 09.12.06
25,000 –– 25,000 – 178.5p 17.05.02 17.05.09
18,000 –––18,000 223.5p 18.11.02 18.11.09
15,000 –––15,000 199.5p 13.11.03 13.11.10
– 15,000 – – 15,000 270p 17.12.04 17.12.11
* At 3 September 2001
The mid market price of the shares at 31 August 2002 was 375p and the range during the year was 192.5p to 410p.
In addition to the above, executive directors have an interest in a Savings Related Share Option Scheme which was
introduced in 1994. Under this scheme, the maximum number of shares over which the directors have options are:
Number of options Exercise price
Ian T Townsend 9,024 187p
Alexander Anderson 12,229 129p/216p
Options exercised in the year resulted in the following gains:
Mid market price
No of shares Date of exercise on day of exercise Gain Option scheme
Steven Lyon 10,000 12.08.02 367.5p £21,350 Executive
9,300 12.08.02 367.5p £23,389 Savings Related
Alexander Anderson 17,000 27.11.02 270p £16,660 Executive
2,613 4.3.02 298.5p £4,351 Savings Related
25,000 27.5.02 398p £54,875 Executive
No directors had any interest in contracts with the Group.
EXECUTIVE DIRECTORS’ SERVICE AGREEMENTS In normal circumstances the notice period for executive directors
is one year. For Iain C R Bett, Ronald G Hanna and Ian T Townsend, in the event of a takeover of the Company and
the Company wishes to terminate their employment within the 15 months following the date of the acquisition, 
the period of notice which the Company is obliged to give is two years.
OUTSIDE APPOINTMENTS Subject to Board approval, executive directors may serve as non-executive directors 
on the boards of other companies and may retain remuneration from such appointments.
By order of the Board
Graham H Webster
Director
8 November 2002 25 Bett Annual Report and Accounts 2002
Five Year Summary
Restated*
1998 1999 2000 2001 2002
Turnover excluding share of joint ventures (£000) 58,953 71,107 73,084 87,070 114,075
Proﬁt before taxation (£000) 5,447 9,369 8,115 10,060 17,154
Tax on proﬁt on ordinary activities (£000) (1,332) (2,061) (1,903) (1,650) (3,472)
Proﬁt for the ﬁnancial year (£000) 4,115 7,308 6,212 8,410 13,682
Earnings per ordinary share 27.33p 48.23p 40.33p 53.27p 87.00p
Dividend per ordinary share:
Interim 2.05p 3.00p 3.30p 3.65p 4.20p
Final 5.40p 7.50p 8.25p 9.10p 11.00p
7.45p 10.50p 11.55p 12.75p 15.20p
Dividend cover 3.7x 4.6x 3.4x 4.2x 5.6x
Net assets employed (£000) 33,163 39,041 43,674 50,729 62,219
Net assets per ordinary share 219.9p 255.5p 277.1p 320.9p 389.8p
* The 2001 ﬁgures have been restated for the adoption of FRS 19 (see note 14). Restated*
2002 2001
Notes £000 £000
Group turnover from continuing operations including share of joint ventures 3 116,280 83,182
Share of joint ventures’ turnover (2,205) (4,161)
Group turnover from continuing operations 114,075 79,021
Group turnover from discontinued operations 3 – 8,049
Group turnover 114,075 87,070
Cost of sales 4 (90,318) (70,963)
Gross proﬁt 4 23,757 16,107
Other operating expenses (net) 4 (5,856) (6,109)
Operating proﬁt 4 17,901 9,998
Operating proﬁt from continuing operations 17,901 8,282
Operating proﬁt from discontinued operations – 1,716
Operating proﬁt 17,901 9.998
Share of operating proﬁt in joint ventures 984 2,191
Proﬁt on sale of discontinued operations 12 515 –
Proﬁt on ordinary activities before interest 3 19,400 12,189
Interest payable (net) 5 (2,246) (2,129)
Proﬁt on ordinary activities before taxation 6 17,154 10,060
Tax on proﬁt on ordinary activities 8 (3,472) (1,650)
Proﬁt for the ﬁnancial year 13,682 8,410
Dividends paid and proposed 9 (2,423) (2,009)
Retained proﬁt for the year 19 11,259 6,401
Earnings per ordinary share – basic 10 87.00p 53.27p
– diluted 10 86.10p 52.63p 
Consolidated Proﬁt and Loss Account
Year ended 31 August 2002
Statement of Total Recognised Gains and Losses
Year ended 31 August 2002
26 Bett Annual Report and Accounts 2002
Restated*
2002 2001
£000 £000
Proﬁt for the ﬁnancial year 13,682 8,410
Total recognised gains in the period 13,682 8,410
Prior year adjustment (note 14) 1,200
Total recognised gains and losses since last annual report 14,882
Note of Historical Cost Proﬁts and Losses
Year ended 31 August 2002
Restated*
2002 2001
£000 £000
Reported proﬁt on ordinary activities before taxation 17,154 10,060
Realisation of property gains of previous years 2,189 78
Historical cost proﬁt on ordinary activities before taxation 19,343 10,138
Historical cost proﬁt for the year retained after taxation and dividends 13,448 6,479
* The Consolidated Proﬁt and Loss Account, Statement of Total Recognised Gains and Losses and Note of Historical Cost Proﬁts and Losses for the year 
ended 31 August 2001 have been restated for the adoption of FRS 19 (see note 14). Restated*
2002 2001
Notes £000 £000
Fixed assets
Tangible assets 11 3,581 13,023
Investments
Own shares 12 416 –
Joint ventures – share of gross assets 16,643 20,649
– share of gross liabilities (14,091) (17,167)
12 2,968 3,482
6,549 16,505
Current assets
Stocks 13 104,806 73,353
Debtors 14 14,272 7,619
Cash at bank and in hand 1,791 35
120,869 81,007
Creditors
Amounts falling due within one year 15 (45,199) (36,783)
Net current assets 75,670 44,224
Total assets less current liabilities 82,219 60,729
Creditors
Amounts falling due after more than one year 16 (20,000) (10,000)
Net assets 3 62,219 50,729
Capital and reserves
Called-up equity share capital 18 3,192 3,161
Share premium 19 607 407
Revaluation reserve 19 125 2,314
Proﬁt and loss account 19 58,295 44,847
Equity shareholders’ funds 19 62,219 50,729
* The Consolidated Balance Sheet at 31 August 2001 has been restated for the adoption of FRS 19 (see note 14).
The accounts on pages 26 to 43 were approved by the Board on 8 November 2002 and signed on its behalf by:
Iain C R Bett Director Ronald G Hanna Director
Consolidated Balance Sheet
At 31 August 2002
27 Bett Annual Report and Accounts 2002 Restated*
2002 2001
Notes £000 £000
Fixed assets
Tangible assets 11 3,571 13,013
Investments 12 1,072 764
4,643 13,777
Current assets
Stocks 13 102,220 73,344
Debtors 14 22,454 9,420
Cash at bank and in hand 1,791 35
126,465 82,799
Creditors
Amounts falling due within one year 15 (45,416) (36,783)
Net current assets 81,049 46,016
Total assets less current liabilities 85,692 59,793
Creditors
Amounts falling due after more than one year 16 (20,000) (10,000)
Net assets 65,692 49,793
Capital and reserves
Called-up equity share capital 18 3,192 3,161
Share premium 19 607 407
Revaluation reserve 19 125 310
Proﬁt and loss account 19 61,768 45,915
Equity shareholders’ funds 65,692 49,793
* The Company Balance Sheet at 31 August 2001 has been restated for the adoption of FRS 19 (see note 14).
The accounts on pages 26 to 43 were approved by the Board on 8 November 2002 and signed on its behalf by:
Iain C R Bett Director Ronald G Hanna Director
Company Balance Sheet
At 31 August 2002
28 Bett Annual Report and Accounts 2002 2002 2001
Notes £000 £000
Net cash outﬂow from operating activities 20 (13,199) (4,785)
Dividends received from joint ventures 1,014 157
Interest paid (1,457) (1,035)
UK corporation tax paid (2,537) (1,440)
Capital expenditure and ﬁnancial investment 21 (564) (483)
Disposals 21 12,791 –
Equity dividends paid (2,106) (1,871)
Cash outﬂow before ﬁnancing (6,058) (9,457)
Financing 21 10,231 10,054
Increase in cash in the year 4,173 597
2002 2001
£000 £000
Increase in cash in the year 4,173 597
Cash inﬂow from increase in debt ﬁnancing (10,000) (10,000)
Changes in net debt resulting from cashﬂows (5,827) (9,403)
Net debt at 1 September (12,382) (2,979)
Net debt at 31 August (18,209) (12,382)
Consolidated Cash Flow Statement
Year ended 31 August 2002
Reconciliation of Net Cash Flow to Movement in Net Debt (Note 22)
29 Bett Annual Report and Accounts 2002 1. Statement of accounting policies
A summary of the Group’s principal accounting policies is set out below. The accounting policies have been 
applied consistently throughout the year and with the preceding year with the exception of the adoption of 
FRS 19 ‘Deferred Tax’, which is explained in note 14. 
A – Basis of accounting The accounts are prepared in accordance with applicable accounting standards under 
the historical cost convention, modiﬁed to reﬂect the revaluation of certain ﬁxed assets. Compliance with SSAP 19
requires departure from the requirements of the Companies Act 1985 relating to depreciation and an explanation
of the departure is given below in note C(i).
B – Basis of consolidation The Group accounts consolidate the accounts of Bett Brothers plc and its subsidiary
undertakings made up to 31 August 2002. 
On the acquisition of a business, including an interest in an associated undertaking, fair values are attributed 
to the Group’s share of net separable assets. When the cost of acquisition exceeds the fair values attributable 
to such net assets, the difference is treated as purchased goodwill and capitalised in the balance sheet at the date 
of acquisition. Goodwill arising on acquisitions in the year ended 31 August 1999 and earlier periods was written
off to reserves in accordance with the accounting standard then in force. As permitted by the current accounting
standard, the goodwill previously written off to reserves has not been reinstated in the balance sheet. On disposal
or closure of a previously acquired business, the attributable amount of goodwill previously written off to reserves
is included in determining the proﬁt or loss on disposal. 
In the Company’s accounts, investments in subsidiary undertakings and joint ventures are stated at cost less
amounts written off and any provisions for impairment. Only dividends received and receivable are credited to 
the Company’s proﬁt and loss account.
C – Tangible ﬁxed assets
(i) Basis of valuation
Investment Properties are deﬁned in line with SSAP 19 as interests in properties held for investment potential 
and these properties are revalued every ﬁve years by independent, professionally-qualiﬁed valuers. 
No depreciation is provided in respect of investment properties. The Companies Act 1985 requires all properties 
to be depreciated. However, this requirement conﬂicts with the generally accepted accounting principle set out 
in SSAP 19. The directors consider that, because these properties are not held for consumption but for their
investment potential, to depreciate them would not give a true and fair view and that it is necessary to adopt 
SSAP 19 in order to give a true and fair view.
If this departure from the Act had not been made, the proﬁt for the ﬁnancial year would have been reduced by
depreciation. However, the amount of depreciation cannot reasonably be quantiﬁed because depreciation is only
one of many factors reﬂected in the valuation and the amount which might otherwise have been shown cannot 
be separately identiﬁed and quantiﬁed.
Development Properties are deﬁned as those properties in respect of which construction and development have
not been completed at the balance sheet date and are classiﬁed as work in progress within stock until sold.
Operating Properties comprise all other properties used in the Group’s operations, other than Investment and
Development Properties. 
All other operating ﬁxed assets are shown at cost.
(ii) Depreciation
Fixed assets are depreciated on a straight line basis to their estimated residual values over their useful lives 
as follows:
Freehold land and investment properties – not depreciated
Operating properties (excluding land) – 50 years
Plant, vehicles and equipment – 3-10 years
D – Investments Fixed asset investments are shown at cost less amounts written off and provisions for 
impairment. Provisions are made for permanent reductions in value. Income is included (together with the 
related tax credit) in the consolidated accounts of the year in which it is receivable, for both ﬁxed and current 
asset investments.
E – Interests in joint ventures Joint ventures are entities in which a Group company has a participating interest 
on a long term basis and is jointly controlled by the reporting entity and one or more other ventures under a
contractual arrangement. The consolidated proﬁt and loss account includes the Group’s share of pre-tax proﬁt 
and attributable taxation of the joint ventures based on audited ﬁnancial statements for the ﬁnancial year. 
These investments are dealt with by the gross equity method of accounting, with any net deﬁcits disclosed as
Notes to the Accounts
For the year ended 31 August 2002
30 Bett Annual Report and Accounts 2002 provisions for liabilities and charges, except where the Group has a stated policy not to provide additional 
support to a joint venture.
F – Stocks Stocks, which include land for development, are stated at the lower of cost and net realisable value.
Attributable proﬁt on long term contracts is taken when the ﬁnal outcome can be foreseen with reasonable
certainty; provision is made for any anticipated losses.
G – Taxation Corporation tax payable is provided on taxable proﬁts at the current rate.
The Group has adopted FRS 19 ‘Deferred Tax’ in the current year. Deferred tax is provided in full on timing
differences which result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a
future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences
arise from the inclusion of items of income and expenditure in taxation computations in periods different from
those in which they are included in ﬁnancial statements. Deferred tax is not provided on timing differences arising
from the revaluation of ﬁxed assets where there is no commitment to sell the asset, or on unremitted earnings 
of subsidiaries and associates where there is no commitment to remit these earnings. Deferred tax assets are
recognised to the extent that it is regarded as more likely than not that they will be recovered. Deferred tax assets
and liabilities are not discounted.
H – Turnover Group turnover is stated net of VAT and intra-group transactions and includes:
• sales of development properties;
• apportioned estimated proceeds where development proﬁts are recognised in stages; and
•legally completed house sales.
I – Revaluation reserve Surpluses or deﬁcits arising on the revaluation of individual tangible ﬁxed assets are
transferred to a non-distributable reserve known as the revaluation reserve. Permanent revaluation deﬁcits 
in excess of the amount of prior revaluation surpluses on the same asset are charged to the proﬁt and loss
account. On the disposal of a revalued ﬁxed asset, any remaining revaluation surplus corresponding to the item 
is transferred to revenue reserves with the gain in excess of the revaluation taken to the proﬁt and loss account.
J – Leases Assets held under ﬁnance leases and other similar contracts, which confer rights and obligations
similar to those attached to owned assets, are capitalised as tangible ﬁxed assets and are depreciated over the
shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as
liabilities, while the interest elements are charged to the proﬁt and loss account over the period of the leases to
produce a constant rate of charge on the balance of capital repayments outstanding.
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are
not made on such a basis. Beneﬁts received and receivable as an incentive to sign an operating lease are similarly
spread on a straight-line basis over the lease term, except where the period to the review date on which the rent 
is ﬁrst expected to be adjusted to the prevailing market rate is shorter than the full lease term, in which case the
shorter period is used.
K – Pension costs The regular cost to the Group of providing pension beneﬁts is charged against proﬁt over the
employees' service lives on the basis of a constant percentage of eligible earnings. Variations from regular cost
arising from periodic actuarial valuations and any cumulative adjustments are allocated to proﬁt over the expected
remaining service lives of current employees on the basis of a constant percentage of current and estimated future
eligible earnings.
See note 24 for further information on the Group's pension schemes including transitional disclosures required
under FRS 17.
L – Financial instruments The Group uses derivative ﬁnancial instruments to hedge its exposures to ﬂuctuations 
in interest rates. Instruments accounted for as hedges are designated as a hedge at the inception of contracts.
Receipts and payments on interest rate instruments are recognised on an accruals basis over the life of the
instrument. Finance costs associated with debt issuances are charged to the proﬁt and loss account over the life 
of the instruments.
M – Executive Share Option Plans (‘ESOPs’) Shares owned by ESOPs sponsored by the Company but which are 
not under the Group’s control are shown in the consolidated balance sheet as investments of the Group. In the
case of the Group sponsored ESOPs, whose investments are, as deﬁned by UITF 13, under the control of the parent
company, their assets, borrowings and other liabilities are included in the Company’s balance sheet. Where such
schemes have been committed to satisfy options granted under employee share option schemes at a discount 
to cost, provision for such discount is charged to the proﬁt and loss account on a straight-line basis over the
anticipated life of the option. The costs of operating ESOPs are included in the consolidated proﬁt and loss account.
Notes to the Accounts
For the year ended 31 August 2002
31 Bett Annual Report and Accounts 2002 2. Parent company proﬁt and loss account
The Company has taken advantage of the exemption in s.230 of the Companies Act 1985 not to present its 
own proﬁt and loss account. The proﬁt after taxation dealt with in the parent company’s proﬁt and loss account
amounted to £17,107,000 (2001 – £6,795,000).
3. Segmental information
Turnover, proﬁt before interest and net assets by segment are as follows:
Turnover
(including joint venture
turnover share) Proﬁt before interest Net assets
2002 2001 2002 2001 2002 2001
£000 £000 £000 £000 £000 £000
Housebuilding 106,264 77,423 15,288 8,888 58,593 35,998
Property 10,016 5,759 5,058 2,859 24,444 17,028
Group turnover from continuing activities 116,280 83,182
Discontinued activities * – 8,049 515 1,716 – 11,619
Central costs – – (1,461) (1,274) – –
Cash/(borrowings) – – – – (18,209) (12,382)
Unallocated † – – – – (2,609) (1,534)
Group total 116,280 91,231 19,400 12,189 62,219 50,729
* Discontinued activities comprise the Pitkerro Plumbing and Inns operations which were sold on 1 September
2000 and 3 September 2001 respectively.
† Unallocated comprises taxation and proposed dividend balances. 
The origination and destination of turnover is the United Kingdom for all of the above segments.
4. Cost of sales, gross proﬁt, other operating expenses (net) and operating proﬁt
Continuing Discontinued Continuing Discontinued
operations operations Total operations operations Total
2002 2002 2002 2001 2001 2001
£000 £000 £000 £000 £000 £000
Cost of sales 90,318 – 90,318 66,072 4,891 70,963
Gross proﬁt 23,757 – 23,757 12,949 3,158 16,107
Selling and marketing (588) – (588) (547) – (547)
Administrative expenses (5,704) – (5,704) (4,543) (1,442) (5,985)
Other operating income 436 – 436 423 – 423
Other operating expenses (net) (5,856) – (5,856) (4,667) (1,442) (6,109)
Operating proﬁt 17,901 – 17,901 8,282 1,716 9,998
5. Interest payable (net)
2002 2001
£000 £000
Interest receivable
Other interest (12) (50)
Bank deposits (15) (4)
(27) (54)
Interest payable and similar charges
Bank loans and overdrafts 1,570 1,443
Share of joint ventures 703 740
2,273 2,183
Interest payable (net) 2,246 2,129
Notes to the Accounts
For the year ended 31 August 2002
32 Bett Annual Report and Accounts 2002 6. Proﬁt on ordinary activities before taxation
2002 2001
£000 £000
Proﬁt on ordinary activities before taxation is stated after charging/(crediting):
Depreciation – owned assets 167 413
– assets held under ﬁnance leases – 3
Gain on sale of tangible ﬁxed assets (13) (69)
Hire of plant and machinery 1,094 919
Operating leases – plant and machinery 454 386
– other 270 290
Auditors’ remuneration – Deloitte & Touche 48 –
– Andersen 10 59
Non-auditor services – Andersen 43 13
7. Staff costs
2002 2001
£000 £000
Particulars of employees (including executive directors) are shown below.
Employee costs during the year amounted to:
Wages and salaries 6,567 7,186
Social security costs 647 660
Other pension costs 481 512
7,695 8,358
2002 2001
Number Number
The average monthly number of persons employed by the
Group during the year was as follows:
Housebuilding and related activities 226 194
Pubs and hotels – 223
Property investment and development 4 4
230 421
Disclosures of individual directors’ remuneration, share options, long-term incentive schemes, pension
contributions and pension entitlements required by the Companies Act 1985 and those speciﬁed for audit by the
Listing Rules of the Financial Services Authority are shown in the Remuneration Report on pages 22, 23 & 24, 
and form part of these ﬁnancial statements.
8. Tax on proﬁt on ordinary activities
Restated*
2002 2001
£000 £000
Current taxation
UK corporation tax charge for the year 3,666 1,938
Adjustment in respect of prior periods (9) 27
Corporation tax on share of proﬁt from joint ventures 197 279
Total current tax 3,854 2,244
Deferred taxation – current year (393) (628)
– prior periods 11 34
Tax on proﬁt on ordinary activities 3,472 1,650
* Adoption of FRS 19 has required a change in the method of accounting for deferred tax. As a result, the
comparative ﬁgure for the tax on ordinary activities for 2001 has been restated from the previously reported 
amount of £2,250,000 to £1,650,000. The impact of adopting FRS 19 on the 2002 results is a decrease to the 
tax charge of £382,000.
Notes to the Accounts
For the year ended 31 August 2002
33 Bett Annual Report and Accounts 2002 8. Tax on proﬁt on ordinary activities – continued
The standard rate of tax for the year, based on the UK standard rate of corporation tax is 30%. The actual tax 
charge for the current and previous year is less than the standard rate for the reasons set out in the following
reconciliation.
Restated*
2002 2001
£000 £000
Proﬁt on ordinary activities before tax 17,154 10,060
Proﬁt on ordinary activities at standard rate 5,146 3,018
Factors affecting charge for the period:
Expenses not deductible for tax 41 109
Depreciation in excess of capital allowances (29) (65)
Short-term timing differences (18) (13)
Income not subject to tax (97) (443)
Utilisation of losses brought forward (1,222) (646)
Proﬁt on disposal of ﬁxed assets and investments (155) (33)
Adjustments in respect of prior periods (9) 27
Corporation tax on share of proﬁt of joint ventures 197 279
Other – 11
Total actual amount of current tax 3,854 2,244
9. Dividends paid and proposed
2002 2001
£000 £000
Ordinary:
Interim paid 4.20p per share (2001 – 3.65p per share) 668 571
Final proposed 11.00p per share (2001 – 9.10p per share) 1,755 1,438
2,423 2,009
10. Earnings per ordinary share
Basic and diluted earnings per share are calculated as follows: Restated*
2002 2001
£000 £000
Proﬁt for the ﬁnancial year 13,682 8,410
2002 2001
Weighted average number of shares: Number Number
For basic earnings per share 15,726,574 15,788,707
Effect of exercise of share options 164,775 192,127
For diluted earnings per share 15,891,349 15,980,834
* The 2001 proﬁt for the ﬁnancial year has been restated for the adoption of FRS 19.
11. Tangible ﬁxed assets
Group
(a) The movement in the year was as follows:
Plant
Investment Operating vehicles and
properties properties equipment Total
£000 £000 £000 £000
Cost or valuation
Beginning of year 259 12,051 4,018 16,328
Additions –– 162 162
Transfer from stocks –2,842 – 2,842
Disposals –(11,679) (2,783) (14,462)
End of year 259 3,214 1,397 4,870
Notes to the Accounts
For the year ended 31 August 2002
34 Bett Annual Report and Accounts 2002 11. Tangible ﬁxed assets – continued
Plant
Investment Operating vehicles and
properties properties equipment Total
£000 £000 £000 £000
Depreciation
Beginning of year – 288 3,017 3,305
Charge for the year –38 129 167
Disposals – (105) (2,078) (2,183)
End of year – 221 1,068 1,289
Net book value 2001 259 11,763 1,001 13,023
Net book value 2002 259 2,993 329 3,581
There are no leased assets included above (2001 – £nil).
(b) Basis of valuation
Plant, vehicles and equipment are shown at cost. Investment Properties were valued at 31 August 2001 and 2002
on the basis of open-market value and existing use in accordance with the Appraisal and Valuation Manual of the
Royal Institution of Chartered Surveyors by Mr I T Townsend, FRICS, a director of Bett Brothers plc. The valuations
have been incorporated in the accounts. The valuation of Investment Properties exceeds their cost by £124,547
(2001 – £124,547).
(c) The original cost, and aggregate depreciation based on cost, of operating properties included at valuation is 
as follows:
2002 2001
£000 £000
Original cost – 10,335
Depreciation based on cost – (157)
– 10,178
Company
With the exception of freehold investment properties costing £10,000, which are owned by a subsidiary undertaking
and which have been held throughout the year, all of the Group’s ﬁxed assets are held by the Company.
12. Investments held as ﬁxed assets
Group Company
2002 2001 2002 2001
£000 £000 £000 £000
Group:
Subsidiary undertakings – – 204 224
Joint ventures 2,548 3,478 446 534
Own shares 416 – 416 –
Other investments 4 4 6 6
2,968 3,482 1,072 764
Principal Group investments
Details of investments which are not signiﬁcant are not disclosed as this would result in a list of excessive length.
Country of Principal
operation activity
Principal subsidiary undertakings:
Bett Homes Limited Scotland Housebuilding
Bett Homes (Northern) Limited England Housebuilding
Bett Homes (North East) Limited England Housebuilding
Bett Partnerships Limited Scotland Social housing
Bett Properties Limited Scotland Property development and trading
Bett (Calver Road) Limited England Property development
Notes to the Accounts
For the year ended 31 August 2002
35 Bett Annual Report and Accounts 2002 12. Investments held as ﬁxed assets – continued
Principal joint ventures (all 50%):
B & S Ventures Limited * UK Property development and trading
Haymarket Court Limited Scotland Property development
Thistlestone Estates Limited Scotland Property development and trading
* Investments held by Bett Properties Limited.
All of the principal subsidiary undertakings are wholly-owned agents of Bett Brothers plc, which is incorporated 
in Scotland. All Group companies have an accounting reference date of 31 August, with the exception of Haymarket
Court Limited which prepares accounts to 31 July. 
Joint ventures
2002 2001
£000 £000
At beginning of year 3,478 2,463
Proﬁts retained for the year 84 1,172
Dividends received in the year (1,014) (157)
At end of year 2,548 3,478
Sale of Inns division
On 3 September 2001, the business and trading assets of the Inns division were sold to the existing management
team and others. The total cash consideration comprised £13.0m plus the net current asset value at 3 September
2001, which gave rise to a gain on sale after expenses of £0.5m over net asset value. The exceptional item did not
have a material impact on the tax charge in the current year.
Own shares Group Company
£000 £000
NBV at 1 September 2001* 278 278
Additions 237 237
Transfer to participants (45) (45)
Lapsed share options (54) (54)
NBV at 31 August 2002 416 416
* The amount at 31 August 2001 was included within other debtors.
The own shares relates to a long-term incentive scheme for senior management of the Group which the Company
operates. Awards under the scheme are based on appropriate Group proﬁt targets determined by the remuneration
committee at the start of the year. The Bett Brothers Plc Employee Beneﬁt Trust (BBEBT) was established to 
hedge the future obligations of the Group in respect of shares awarded under the Executive Share Option Scheme.
The Trustee of BBEBT purchases the Company’s Ordinary Shares in the open market with ﬁnancing provided by 
the Company, as required, on the basis of regular reviews of the anticipated share liabilities of the Group.
The BBEBT has waived any entitlement to the receipt of dividends in respect of its holding of the Company’s 
Ordinary Shares. The BBEBT’s waiver of dividend may be revoked or varied at any time.
The number and market value of the ordinary shares held by BBEBT’s at 31 August 2002 was 180,000 (2001 –
144,639) and £675,000 (2001 – £372,445) respectively.
13. Stocks
Group Company
2002 2001 2002 2001
£000 £000 £000 £000
Raw materials and consumables – 27 – 27
Work-in-progress 103,761 71,236 101,175 71,227
Finished goods and goods for resale 1,045 2,090 1,045 2,090
104,806 73,353 102,220 73,344
Work-in-progress includes property developments stated at £11,665,261 (2001 – £9,168,562). 
Notes to the Accounts
For the year ended 31 August 2002
36 Bett Annual Report and Accounts 2002 14. Debtors Group Company
Restated* Restated*
2002 2001 2002 2001
£000 £000 £000 £000
Amounts falling due within one year:
Trade debtors 9,431 2,265 9,431 2,219
Amounts owed by subsidiary undertakings – – 8,182 1,907
Amounts owed by joint ventures 2,531 2,776 2,531 2,716
VAT – 303 – 303
Deferred taxation 1,225 843 1,225 843
Other debtors 281 1,125 281 1,125
Prepayments and accrued income 804 307 804 307
14,272 7,619 22,454 9,420
There are no debtors falling due after more than one year.
Deferred taxation
Deferred taxation consists of the following amounts: 2002 2001
£000 £000
Capital allowances in excess of depreciation 25 (357)
Trading losses 1,200 1,200
1,225 843
The movements during the year on deferred tax were:
Balance at 1 September 843 249
Current year credit 382 594
Balance at 31 August 1,225 843
The adoption of FRS 19 ‘Deferred Taxation’ has required changes in the method of accounting for deferred tax assets
and liabilities. As a result of these changes in accounting policy the comparatives have been restated as follows:
Deferred Proﬁt and Shareholders’
taxation loss reserve funds
£000 £000 £000
2001 as previously reported (357) 43,647 49,529
Adoption of FRS 19 at 1 September 2000 600 600 600
During the year ended 31 August 2001 600 600 600
Adoption of FRS 19 at 31 August 2001 1,200 1,200 1,200
2001 restated 843 44,847 50,729
A deferred tax asset of £1.2m has been recognised at 31 August 2002 (2001 – £1.2m). This asset relates to prior
trading losses. The directors are of the opinion, based on recent and forecast trading, that the level of proﬁts in the
current and next ﬁnancial year will allow the deferred tax asset to be fully recovered.
After adopting FRS 19 an unrecognised deferred tax asset of £1.1m (2001 – £2.3m) remains relating to the balance 
of trading losses carried forward. The likelihood of this deferred tax asset being recoverable is not ascertainable,
therefore the asset has not been recognised. The asset will be recognised against future trading proﬁts.
Notes to the Accounts
For the year ended 31 August 2002
37 Bett Annual Report and Accounts 2002 15. Creditors: amounts falling due within one year
Group Company
2002 2001 2002 2001
£000 £000 £000 £000
Bank overdraft – 2,417 – 2,417
Trade creditors 13,358 9,167 13,358 9,167
Amounts owed to joint ventures 3 305 3 305
Corporation tax payable 2,060 940 2,060 940
VAT 62 – 279 –
Other taxation and social security 258 205 258 205
Proposed dividends 1,755 1,438 1,755 1,438
Accruals and deferred income 27,703 22,311 27,703 22,311
45,199 36,783 45,416 36,783
The bank overdraft is secured by a bond and ﬂoating charge from Bett Brothers plc together with cross guarantees
and letters of offset from all Group subsidiaries.
16. Creditors: amounts falling due after more than one year
Group and Company
2002 2001
£000 £000
Bank term loan
Between one and two years – 10,000
Between two and ﬁve years 20,000 –
The bank term loan above of £20m is part of a revolving credit facility of £40m, which is repayable on 31 January
2005, is secured by a bond and ﬂoating charge from Bett Brothers plc together with cross guarantees and letters 
of offset from all Group subsidiaries.
17. Derivatives and other ﬁnancial instruments
The interest rate proﬁle of the Group's ﬁnancial assets and liabilities is noted below. 
The Group's ﬂoating rate (being 1% over base rate) ﬁnancial liabilities which had a weighted average interest rate 
at the year end of 5.0% (2001 – 6.0%) consists of:
Group and Company
2002 2001
£000 £000
Cash at bank and in hand 1,791 35
Bank overdraft – 2,417
The bank overdraft is repayable on demand. Interest is payable at 1% over base rate. Interest is receivable on cash
at bank at a rate of 1% over base rate.
The Group's ﬁxed rate ﬁnancial liabilities, which had a weighted average interest rate at the year end of 5.6%, 
and the maturity proﬁles of the interest rate caps are as follows:
Group and Company
2002 2001
£000 £000
Bank term loan (5.4%) – matures 29 June 2002 – 5,000
Bank term loan (5.585%) – matures 30 June 2003 5,000 5,000
5,000 10,000
Borrowing facilities
The Group has various undrawn committed borrowing facilities. The undrawn facilities available at 31 August 2002 
in respect of which all conditions precedent have been met were as follows:
Group and Company
2002 2001
£000 £000
Expiring in one year or less 35,000 32,583
Expiring in two to ﬁve years 20,000 10,000
55,000 42,583
Fair value ﬁnancial assets and ﬁnancial liabilities
There are no material differences between the carrying values and the fair values of the ﬁnancial assets and
ﬁnancial liabilities disclosed above.
Notes to the Accounts
For the year ended 31 August 2002
38 Bett Annual Report and Accounts 2002 18. Equity share capital
£000 £000
Authorised:
16,500,000 ordinary shares of 20p each 3,300 3,300
Allotted, called-up and fully paid:
15,960,670 ordinary shares of 20p each (2001 – 15,805,428) 3,192 3,161
During the year 155,242 shares were issued (2001 – 43,450) giving rise to a share premium of £200,235 (2001 –
£45,518).
Details of options granted and exercised under the Bett Brothers plc Executive Share Option and Savings Related
Share Option Schemes are given in the Directors’ Report.
19. Reserves
The revaluation reserve and the share premium account are not considered to be distributable.
Group
Share Revaluation Proﬁt and 
premium reserve loss account
£000 £000 £000
Beginning of year (as restated) 407 2,314 44,847
Share issues 200 – –
Transfer of realised revaluation reserve –(2,189) 2,189
Retained proﬁt for the year –– 11,259
End of year 607 125 58,295
Company
Share Revaluation Proﬁt and 
premium reserve loss account
£000 £000 £000
Beginning of year (as restated) 407 310 45,915
Share issues 200 – –
Transfer of realised revaluation reserve – (185) 185
Retained proﬁt for the year –– 15,668
End of year 607 125 61,768
No deferred tax has been provided in respect of the revaluation reserve since the directors consider that no 
liability to tax will arise in the foreseeable future. The deferred tax liability in respect of the revaluation reserve 
is not material.
Reconciliation of movements in consolidated shareholders’ funds Restated*
2002 2001
£000 £000
Proﬁt for the ﬁnancial year 13,682 8,410
Dividends (2,423) (2,009)
Retained proﬁt for the year 11,259 6,401
Issue of ordinary share capital (including share premium of £200,235 (2001 – £45,518) 231 54
Net addition to shareholders’ funds 11,490 6,455
Opening shareholders’ funds 50,729 44,274
Closing shareholders’ funds 62,219 50,729
* The proﬁt and loss reserve for the Group and Company as of 1 September 2001 has been restated for the adoption
of FRS 19 (see note 14).
Notes to the Accounts
For the year ended 31 August 2002
39 Bett Annual Report and Accounts 2002 20. Reconciliation of operating proﬁt to net cash outﬂow from operating activities
2002 2001
£000 £000
Operating proﬁt 17,901 9,998
Depreciation 167 416
Gain on sale of ﬁxed assets (13) (69)
Increase in stocks (34,295) (17,791)
Increase in debtors (6,271) (773)
Increase in creditors 9,312 3,434
Net cash outﬂow from operating activities (13,199) (4,785)
21. Analysis of cash ﬂows for headings netted in the cash ﬂow statement
2002 2001
£000 £000
Capital expenditure and ﬁnancial investment
Sale of tangible ﬁxed assets 16 502
Purchase of tangible ﬁxed assets and own shares (580) (985)
Net cash outﬂow (564) (483)
Disposals
Sale of Inns division 12,791 –
Net cash inﬂow 12,791 –
Financing
Issue of ordinary share capital 231 54
New borrowings 10,000 10,000
Net cash inﬂow 10,231 10,054
Sale of Inns division
2002
£000
Net assets disposed of:
Fixed assets 12,276
Gain on disposal 515
12,791
Satisﬁed by:
Cash (net) 12,791
The total cash consideration was £13m and professional fees amounted to £209,000. Since the Inns division was 
sold on 3 September 2001, it did not contribute materially to the Group’s cash ﬂows in the year.
22. Analysis of net debt
2001 Cash 2002
£000 ﬂow £000
Cash 35 1,756 1,791
Overdraft (2,417) 2,417 –
4,173
Debt due after one year (10,000) (10,000) (20,000)
(12,382) (5,827) (18,209)
Notes to the Accounts
For the year ended 31 August 2002
40 Bett Annual Report and Accounts 2002 23. Guarantees and other ﬁnancial commitments
(a) Capital and related commitments
At the end of the year there were no capital or related commitments which had been contracted but not provided
for in either the Company or the Group (2001 – £nil).
(b) Contingent liabilities
The Company has granted various performance bonds and guarantees under the normal course of business which
totalled £11,966,520 (2001 – £7,029,625) at the end of the year.
(c) Lease commitments
The Group has entered into non-cancellable operating leases in respect of plant and machinery. The total annual
rental (including interest) for 2002 was £454,271 (2001 – £386,252), all of which was applicable to the Company.
The Group may continue, at its option, to use the plant and machinery after the expiration of the initial lease period
at a nominal rental.
In addition, the Group leases certain land and buildings on short and long-term leases. The annual rental on these
leases was £98,385 (2001 – £155,127), all of which was applicable to the Company. The rents payable under these
leases are subject to renegotiation at various intervals speciﬁed in the leases. The Group pays for all insurance,
maintenance and repairs of these properties.
The minimum annual rentals under the foregoing operating leases are as follows:
Land and buildings Plant and machinery
2002 2001 2002 2001
£000 £000 £000 £000
Operating leases which expire:
– within one year – – 52 55
– within two to ﬁve years 48 49 367 321
– after ﬁve years 72 114 – –
120 163 419 376
24. Pension arrangements
The Group operates two pension schemes, one providing beneﬁts based on ﬁnal pensionable pay and the other
providing beneﬁts from contributions paid into a Group Personal Pension Plan.
The assets of the former scheme are held separately from those of the Group, being invested by professional
investment managers. Contributions are charged to the proﬁt and loss account so as to spread the cost of
pensions over employees’ working lives with the Group. The contributions are determined by a qualiﬁed actuary on
the basis of triennial valuations using the attained age method. The most recent valuation was as at 30 April 2002.
The assumptions which have the most signiﬁcant effect on the results of the valuation are those relating to the
rate of return on investments and to the rate of increase in pay. It was assumed that the investment returns would
be 1.75% per annum higher than the growth in pensionable pay. The actuarial valuation at 30 April 2002 showed
that the market value of the assets held in trust under the pension arrangements aggregated £12.2m and that 
the actuarial value of those assets represented 81% of the beneﬁts that had accrued to members, after allowing
for expected future increases in pay. The deﬁcit is being spread evenly over a 14 year period from the valuation
date by an increase in the contribution rate expressed as a ﬁxed amount per annum. With effect from 1 January
1993 a common normal pension age applies to all members of the scheme. The pension charge for the deﬁned
beneﬁt scheme for the year was £269,106 (2001 – £289,481). This scheme is now closed to new members.
The pension costs ﬁgures used in these accounts comply with the current pension cost accounting standard, 
SSAP 24. Under transitional arrangements the Company is required to disclose in the current accounts the
following information about the scheme and the ﬁgures that would have been shown under FRS 17.
Notes to the Accounts
For the year ended 31 August 2002
41 Bett Annual Report and Accounts 2002 24. Pension arrangements – continued
FRS 17 Transitional disclosures
The Group operates a deﬁned beneﬁt scheme in the UK. A full actuarial valuation was carried out at 1 May 2002 
and updated to 31 August 2002 by a qualiﬁed independent actuary. The major assumptions used by the actuary 
were (in nominal terms):
At year end At year end
31.08.02 31.08.01
Rate of increase in salaries 3.90% 3.90%
Rate of increase of pensions in payment 2.40% 2.40%
Rate of increase in deferred pensions 2.40% 2.40%
Discount rate 5.55% 5.80%
Inﬂation assumption 2.40% 2.40%
The assets in the scheme and the expected rates of return (net of expenses) were:
At year end At year end
31.08.02 31.08.01
£000 £000 £000 £000
Equities 7.15% 6,113 7.45% 7,013
Bonds 4.20% 5,051 4.45% 4,550
Property 7.15% 73 7.45% 400
Cash 3.50% 57 4.15% 121
Total market value of assets 11,294 12,084
Actuarial value of liability (15,302) (13,755)
Recoverable deﬁcit in the scheme (4,008) (1,671)
Related deferred tax asset 902 376
Net pension liability (3,106) (1,295)
If the above pension liability was recognised in the accounts, the Group’s net assets and proﬁt and loss reserve
would be as follows:
At 31.08.02 At 31.08.01
£000 £000
Net assets excluding pension liability 62,219 50,729
Pension liability (3,106) (1,295)
Net assets including pension liability 59,113 49,434
Proﬁt and loss reserve excluding pension liability 58,295 44,847
Pension liability (3,106) (1,295)
Proﬁt and loss reserve including pension liability 55,189 43,552
Analysis of the amount that would have been charged to 
operating proﬁt under FRS 17
Year to 
31.08.02
£000
Service cost 194
Past service cost –
Total operating liability 194
Analysis of amount that would have been credited to 
net ﬁnance income under FRS 17
Year to
31.08.02
£000
Expected return on pension scheme assets 773
Interest on pension liabilities (792)
Net ﬁnance income (19)
Notes to the Accounts
For the year ended 31 August 2002
42 Bett Annual Report and Accounts 2002 43 Bett Annual Report and Accounts 2002
Notes to the Accounts
For the year ended 31 August 2002
24. Pension arrangements – continued
Analysis of actuarial loss that would have been recognised in the 
statement of total recognised gains and losses under FRS 17
Year to
31.08.02
£000
Actual return less expected return on assets (2,026)
Experience gains and losses on liabilities (229)
Changes in assumptions (731)
Actuarial loss recognised in STRGL (2,986)
Adjustment due to surplus cap –
Net loss recognised (2,986)
Movement in deﬁcit during the year
Year to
31.08.02
£
Deﬁcit in scheme at beginning of year (1,671)
Movement in year:
Current service cost (194)
Contribution 862
Past service costs –
Net return on assets/(interest cost) (19)
Actuarial loss (2,986)
Deﬁcit in scheme at end of year (4,008)
The actuarial valuation at 1 May 2002 revealed a past service deﬁcit of £2,794,000. This is different from the amount
being disclosed here as at 31 August 2002 due to the Trustees adopting a different set of ﬁnancial assumptions for
funding purposes and also the fall in the market values between 1 May and 31 August 2002.
The Company has yet to agree with the Trustees the higher contribution to be paid to the Scheme as a result of the 
valuation as at 1 May 2002. Contributions are continuing in the meantime at the previously agreed rate of 13.2% p.a. 
of pensionable salaries plus £54,800 per month.
It should be noted that the Scheme is closed to new entrants. The contribution rate underlying the service cost 
shown is therefore likely to increase as members age since it is calculated using the Projected Unit Method.
History of experience gains and losses
2002
£000
Difference between the expected and actual return on scheme assets:
Amount (2,026)
Percentage of scheme assets (17.9%)
Experience gains and losses on scheme liabilities:
Amount (229)
Percentage of the present value of the scheme liabilities (1.5%)
Total amount recognised in statement of total recognised gains and losses:
Amount (2,986)
Percentage of the present value of the scheme liabilities (19.5%)
25. Related party transactions
Transactions between Group companies that are fully eliminated on consolidation are not disclosed as permitted by
FRS 8 on Related Party Disclosures. 44 Bett Annual Report and Accounts 2002
To the members of Bett Brothers plc
We have audited the accounts of Bett Brothers plc for the year ended 31 August 2002 which comprise the
Consolidated Proﬁt and Loss Account, the Statement of Total Recognised Gains and Losses, the Note of Historic
Cost Proﬁts and Losses, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Cash
Flow Statement and the related notes numbered 1 to 25 together with the reconciliation and analysis of net debt.
These accounts have been prepared under the accounting policies set out therein.
Respective responsibilities of directors and auditors
The directors' responsibilities for preparing the Annual Report and the accounts in accordance with applicable 
United Kingdom law and accounting standards are set out in the Statement of Directors' Responsibilities. 
Our responsibility is to audit the accounts in accordance with relevant United Kingdom legal and regulatory
requirements, auditing standards and the Listing Rules of the Financial Services Authority.
We report to you our opinion as to whether the accounts give a true and fair view and are properly prepared 
in accordance with the Companies Act 1985. 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 information speciﬁed by law or the Listing 
Rules regarding directors' remuneration and transactions with the Company and other members of the Group 
is not disclosed.
We review whether the Corporate Governance Statement reﬂects the Company's compliance with the seven
provisions of the Combined Code speciﬁed for our review by the Listing Rules, 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 Group's corporate governance procedures or its risk and control procedures.
We read the other information contained in the Annual Report for the above year as described in the contents
section and consider whether it is consistent with the audited accounts. We consider the implications for our
report if we become aware of any apparent misstatements or material inconsistencies with the accounts. 
Basis of audit opinion
We conducted our audit in accordance with United Kingdom auditing standards 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 judgments made by the directors 
in the preparation of the accounts and of whether the accounting policies are appropriate to the circumstances 
of the Company and of the Group, 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 of error. In forming our opinion we 
also evaluated the overall adequacy of the presentation of information in the accounts.
Opinion
In our opinion the accounts give a true and fair view of the state of affairs of the Company and of the Group 
at 31 August 2002 and of the proﬁt of the Group for the year then ended and have been properly prepared in
accordance with the Companies Act 1985.
Deloitte & Touche
Chartered Accountants and Registered Auditors
Edinburgh
8 November 2002
Notes
An audit does not provide assurance on the maintenance and integrity of the website, including controls used to
achieve this, and in particular on whether any changes may have occurred to the ﬁnancial statements since ﬁrst
published. These matters are the responsibility of the directors but no control procedures can provide absolute
assurance in this area.
Legislation in the United Kingdom governing the preparation and dissemination of ﬁnancial statements differs
from legislation in other jurisdictions.
Independent Auditors’ Report Designed and produced by Tayburn Corporate
Annual General Meeting 19 December 2002
Payment of ﬁnal dividend 20 January 2003
Announcement of half-year results Late April 2003
Payment of interim dividend 21 July 2003
Preliminary announcement of full-year results Late October 2003
Shareholders’ Calendar
1 Financial Highlights
2 Chairman’s Statement
3 Chief Executive’s Overview 
4 Operating and 
Financial Review
16 Board of Directors
16 Divisional Directors 
and Company Secretary
17 Directors and Advisers
18 Directors’ Report 
22 Remuneration Report
by the Board
25 Five Year Summary  
26 Consolidated Proﬁt 
and Loss Account
26 Statement of Total
Recognised Gains and
Losses 
26 Note of Historical Cost
Proﬁts and Losses 
27 Consolidated 
Balance Sheet
28 Company Balance Sheet 
29 Consolidated 
Cash Flow Statement
29 Reconciliation of Net
Cash Flow to Movement 
in Net Debt 
30 Notes to the Accounts  
44 Independent 
Auditors’ Report  
IBC Shareholders’ Calendar 
Contents Stepping Up
Annual Report and Accounts 2002
Bett Brothers plc
9 Cox Street
Dundee DD3 9HA
Tel 01382 884191
Fax 01382 833918
www.bett.co.uk
Bett Brothers plc Annual Report and Accounts 2002