annual RepoR t 2008
www.groupnbt.com
Group NBT plc
3rd Floor 
Prospero House 
241 Borough High Street 
London SE1 1GA
Tel: +44 (0)207 015 9200 
Fax: +44 (0)870 458 9506 
www.groupnbt.com
Group NBT plc  annual RepoR t 2008   Group n Bt is a leading provider of domain names, hosting and brand 
protection services.
  It provides the essential building blocks to create, maintain and protect 
online brands. 
  Customers include British a irways, t he n ew Statesman and Centrica.
  Group n Bt has 293 employees and is based in l ondon with offices 
in Copenhagen, Cambridge, n ice, Munich, Zurich, o slo and n ew York.
About Group NBT IFC
Financial Highlights 2007/08 1
Group NBT at a Glance 2
chairman’s Statement 4
chief Executive’s review 5
report on corporate Governance 8
Board of Directors 9
Directors’ remuneration report 10
Directors’ report 12
Statement of Directors’ responsibilities 14
report of the Independent Auditors 15
consolidated Income Statement 16
consolidated Statement of changes in Equity 17
consolidated Balance Sheet 18
consolidated cash Flow Statement 19
Notes to the consolidated Financial Statements 20
company Balance Sheet 41
Notes to the company Financial Statements 42
officers and Advisers IBC
Group NBT offices IBC
About
2003/04 2004/05 2005/06 2006/07 2007/08
£0.7m
£2.1m
£2.8m
£3.7m
£5.5m
2003/04 2004/05 2005/06 2006/07 2007/08
£7.7m
£11.3m
£13.8m
£22.4m
£35.3m
rEvENuE uNDErlyING prE-TAx proFIT*
2005/06 2006/07 2007/08
£9.3m £15.7m
rEvENuE B y SErvIcE
£7.8m
£5.1m
£5.4m
£1.3m
£7.5m
£3.5m
£2.1m
£5.0m
£7.4m
£1.4m
 
Domain name management
 Online
 Managed hosting
 Reseller
 Brand protection
2005/06 2006/07 2007/08
£15.5m £19.5m
rEvENuE B y rEGIoN
£14.6m
£1.2m
£6.0m
£0.9m
£12.3m
£0.7m
£0.8m
 UK
 Other European
 US
*excluding restructuring costs and amortisation
Officers and Advisers
DIrEc TorS
JoHN pArcEll 
(Non-executive chairman)
GEoFF WIck S
(chief Executive officer)
JoNATHAN roBINSoN
(chief operating officer)
rAJ NAGEv ADIA
(Finance Director)
kEITH y ouNG
(Non-executive)
TIm ASHl Ey
(Non-executive)
rIcHArD mADDEN
(Non-executive)
clAuS ANDErSEN
(Non-executive)
SEcrETAry
rAJ NAGEv ADIA 
rEGISTErED AND HEAD oFFIcE
3rd Floor 
Prospero House 
241 Borough High Street 
London SE1 1GA
c omp ANy NumBEr
3709856
rEGISTrArS
cApITA rEGISTrArS lImITED
Northern House 
Woodsome Park 
Fenay Bridge 
Huddersfield 
West Yorkshire HD8 0LA
BANk ErS
BANk oF Sco TlAND
Corporate 
Bishopsgate Exchange 
Level 7 
155 Bishopsgate Exchange 
London EC2M 3YB
SolIcIT orS
NABArro
Lacon House 
84 Theobald’s Road 
London WC1X 8RW
FINANcIAl ADvISErS
NumIS SEcurITIES lImITED
10 Paternoster Square 
London EC4M 7LT
STockBrok ErS
NumIS SEcurITIES lImITED
10 Paternoster Square 
London EC4M 7LT
AuDIT orS
BDo ST oy HA yWArD llp
55 Baker Street 
London W1U 7EU
 Offices
uNITED kINGDom
l oNDoN
3rd Floor 
Prospero House 
241 Borough High Street 
London SE1 1GA
cAmBrIDGE
Betjeman House 
104 Hills Road  
Cambridge CB2 1LQ
uS
13th Floor 
55 Broad Street 
New York NY 10004–3715
FrANcE
Green Side BP 296 
400 Avenue Roumanille 
06906 Sophia Antipolis Cedex
GErmANy
OG, Nord, Landshunter Allee 12–14 
80637 München
DENmArk
Islands Brygge 55 
2300 København S
Nor WAy
Majorstuhuset 
Kirkeveien 64A 
N–0364 Oslo
SWITzErlAND
Staffelstrasse 10 
CH–8045 Zürich GROUP NBT PLC ANNUAL REPORT 2008
1
Financial Highlights 2007/08
à  Group NBT once again delivers excellent results 
à  Revenue up 58% to £35.28 million with organic 
growth of 19% 
à  Underlying operating profit¹ up 48% 
to £5.89 million 
à  Underlying pre‑tax profit² up 49% to £5.51 million 
à  Adjusted diluted EPS² increased by 32% 
to 16.26 pence 
à  Proposed total dividend increased by 33% 
to 2.4 pence for the year 
à  NetNames Platinum Service revenue up 38% 
to £9.79 million 
à  Managed hosting revenue up 43% to £5.07 million 
à  Net cash at year end of £0.66 million compared 
to net debt of £1.95 million at 30 June 2007
à  Ascio T echnologies Holding A/S (now Group NBT A/S) 
moves strongly into profit 
1
  Underlying operating profit, shown on the face of the Income Statement, is defined as operating 
profit excluding amortisation, restructuring costs and share‑based payments.
² Excluding restructuring costs and amortisation.
Organic 
revenue growth
+19%
Underlying 
pre-tax profit
2
+49%
Adjusted diluted EPS
2
+32%
Total dividend
+33% 2
GROUP NBT PLC ANNUAL REPORT 2008
NetNames Platinum Service allows 
organisations and Intellectual Property (IP) professionals 
to implement and maintain an effective domain name 
management and online brand protection strategy. 
Customers come from a wide variety of industries 
and include Unilever, Barclays and ladbrokes.com. 
NetNames is an Internet Company for Assigned 
Names and Numbers (ICANN) accredited 
registrar with the ability to register domain names 
in all available suffixes worldwide. NetNames provides 
comprehensive coverage of country code Top Level 
Domains (ccTLDs) such as .de and .es. Following 
the acquisition of Ascio Technologies in January 
2007 NetNames became Europe’s largest domain 
name management specialist. 
NetNames guarantees renewal of domain names 
and provides a secure, high performance Domain 
Name Server (DNS) infrastructure. Platinum Service 
clients also have access to SSL certificates from 
VeriSign to further secure their online presence. 
NetNames provides a recovery service to assist 
clients in purchasing domain names that have been 
registered by other organisations and supports 
customers during domain name disputes. 
NetNames Platinum Service includes a suite of online 
brand monitoring products. Using Envisional’s 
technology to monitor the Internet, brand violations 
from suspect domain name registrations to brand 
abuse such as auction sites carrying fake consumer 
goods can be identified and action taken. 
Envisional provides automated internet search 
and monitoring services to identify and deal with 
internet based brand abuse, counterfeiting, piracy 
and fraud. Its Discovery Engine can identify, filter 
and prioritise information on websites, blogs, forums, 
newsgroups and Internet Relay Chat. The technology 
applies advanced artificial intelligence techniques 
to the task of classifying information and pinpointing 
the most important findings for clients. 
Customers include banks and insurers, major film 
studios, copyright holders and their trade bodies, 
luxury goods firms, multi‑brand corporations and 
the legal firms and marketing agencies that work 
with them. 
Envisional’s brand protection services include: the 
ImageFlare image matching software, providing 
accurate identification of logos and images even 
where a logo has been modified; an eBay monitoring 
service; and a service for companies with large 
networks of affiliates or resellers to enable them 
to ensure compliance. 
Envisional has started to exploit the cross‑selling 
opportunities for brand protection services within 
the large NetNames customer base. June 2008 saw 
the launch of the first group of products to be sold 
through the NetNames sales force. These products 
– Domain Alert, Domain Monitor, Brand Monitor 
and eBay Auction Monitor – are standard packages 
of services, based on Envisional’s intelligent 
search technology. 
 at a Glance
Our business consists 
of five market 
leading services
Domain  
name 
management
Brand 
protection
www.netnames.com www.envisional.com GROUP NBT PLC ANNUAL REPORT 2008
3
The Online Business operates in both 
the consumer and the SME marketplace under 
four brands offering a full range of domain name, 
shared hosting and email services through fully 
transactional websites.
Easily.co.uk has more than 120,000 customers with 
a focus on offering low cost, good quality products 
backed up by exceptional support. The brand 
targets a number of niche markets, including the 
small business start up market, and has strategic 
partnerships with, amongst others, HSBC Business 
Banking and Orange.co.uk, to provide services to 
their customers. More recently it has launched an 
ecommerce package that is targeted at businesses 
making their first steps in trading online.
The Speednames.com brand operates throughout 
Scandinavia, having provided domain name services 
since 2000. Speednames.com offers a wide range 
of domain name suffixes, coupled with excellent 
service. The main focus of Speednames.com is the 
business customer who wishes to secure a number 
of domain names in a variety of overseas markets. 
NetNames and NetBenefit both provide services 
online. Although these brands are targeted at 
customers for managed services they retain unique 
or specialist services for which there is continued 
demand from customers who buy online.
NetBenefit provides managed hosting 
services in the UK and France. It is focused on 
providing reliable and flexible managed hosting 
solutions designed to meet customers’ business 
requirements. Customers range from small start‑ups 
looking for scalable solutions that will grow with 
their business requirements to financial services 
companies and major UK retailers for whom just 
minutes of downtime would translate into 
thousands of pounds in lost revenue.
NetBenefit works with customers directly and through 
an indirect channel model comprising digital agencies 
and IT consultancies. NetBenefit partners with 
a number of the UK’s top 100 digital agencies 
providing the hosting for online advertising 
campaigns for some of the world’s most 
recognisable brands. 
Services range from single server solutions to complex 
database clusters, they include high availability or 
disaster recovery solutions through multiple data 
centres allowing the provision of resilient web 
hosting deployed over dual sites. NetBenefit also 
provides Content Delivery Network services; backup 
and recovery services with eVault; and virtual services 
which consist of either VM Ware or Microsoft’s Hyper‑V .
NetBenefit has recently opened a fourth data centre 
which is entirely powered by green electricity. This 
combined with the adoption of virtualisation, where 
a physical server is split up into a number of virtual 
machines, will allow NetBenefit to be more efficient 
in the way that it uses power in its data centres.
Ascio provides a white‑label domain name 
registration service for partners such as Internet 
Service Providers (ISPs), Telcos, domain name 
resellers and Intellectual Property law firms. Ascio 
works exclusively through partners with a clear focus 
on providing the premium quality and exceptional 
service that domain name professionals need. 
Ascio’s is an automated service with a broad range 
of ccTLDs. It provides a registration engine that offers 
access to 250 top level domains (TLDs) through 
one standard interface. It is easily integrated into 
any existing order provisioning system using an 
XML‑based API or standard email template. 
Ascio has over 300 partners throughout the world 
with particular emphasis on Continental Europe and 
has more than 500,000 domains under management. 
Partners include Cable and Wireless, Hostpoint 
and Telenor.
Partners are able to offer their customers a wide 
selection of TLDs without needing to invest in the 
infrastructure required to register names globally.
Ascio also provides powerful, packaged marketing 
campaigns to help its partners stimulate new business. 
These may be topical, themed or geographically 
targeted campaigns in a variety of different 
forms and media.
Online
Managed 
hosting
Reseller 
services
www.speednames.com www.netbenefit.com www.ascio.com
www.easily.co.uk GROUP NBT PLC ANNUAL REPORT 2008
4
Chairman’s Statement
Group NBT achieved an excellent performance in the year ended 30 June from our family of internet services. These results demonstrate the success of our 
strategy of concentrating on services for growing corporate markets generating strong recurring revenue at high profit margins.
We enjoyed a healthy contribution from the Danish business we acquired in January 2007, where integration is well advanced. We made a smaller investment 
in July 2007 acquiring Envisional, a Cambridge‑based business with innovative techniques for protecting online brands and detecting internet piracy , and it 
is trading in line with our expectations.
Total revenue for the year grew by 58%, and excluding those two acquisitions, organic revenue growth was 19%. Revenue from services managing portfolios 
of corporate domain names was up 72% in total, and organic growth of the NetNames Platinum Service was 36%. 
Underlying pre‑tax profit* for the Group was up 49% at £5.51 million (2007: £3.70 million). The operating profit margin of the Group remained strong, and 
fully‑diluted underlying EPS* increased by 32% to 16.26 pence (2007: 12.29 pence). The Group also continued to be strongly cash‑generative. In line with 
our ongoing dividend policy, the Board is recommending a final dividend of 1.6 pence, making a total dividend of 2.4 pence for the year, 33% ahead of 2007.
Group NBT has pursued its consistent strategy for more than five years with unbroken success. Since 2004 underlying diluted EPS* has more than tripled, 
growing at a compound annual rate of 32%. Total shareholder returns over the same period are 28% per annum compound. I thank all our management 
and staff: this first‑class outcome owes much to their skills, energy, and commitment.
Outl OOk We have not, so far, felt any negative impact from the current economic climate, and we continue to maintain our growth momentum. With 52% of our revenue 
now recurring or repeat corporate business with very high renewal rates, our forward visibility is good.
We remain committed to our policy of seeking steady organic growth coupled with acquisitions from which we can extract good value. We have a good 
competitive position, an attractive business model with strong economics, a product line which we are continually strengthening and sound management. 
In addition our core markets remain attractive. I am confident, therefore, that Group NBT has the fundamental attributes in place to deliver further sustainable 
growth in the current year. 
JOhn Parcell chairman *excluding amortisation and restructuring costs.
“
We have a good competitive position, 
an attractive business model with strong 
economics, a product line which we 
are continually strengthening and 
sound management.
” GROUP NBT PLC ANNUAL REPORT 2008
5
The markets in which we work continue to have healthy growth levels. The overall number of domain names registered has grown at a fast pace and the requirement 
for hosting services is being driven by the increased use of the Internet and the availability of broadband. This has helped Group NBT to maintain high levels of 
growth especially for the key services it provides to companies for the management of portfolios of domain names and for managed hosting.
As a result Group NBT had another excellent year in 2007/08 with all divisions of the business performing well. During the year we continued to integrate Ascio 
Technologies Holding A/S which we acquired in January 2007. This business has now been renamed Group NBT A/S with Ascio remaining as the brand used for 
our reseller business. This business which was loss making at the time of acquisition is now firmly profitable with operating margins improving steadily. While there 
is still work to be done to rationalise and integrate the services, the benefits of the integration are significant.
Our core products continue to perform extremely well. Revenue from NetNames Platinum Service grew by 38%, helped in part by sales of this service through the 
regional offices acquired as part of Group NBT A/S. Managed hosting had another very good year with market conditions favouring companies with our higher 
levels of service. Revenue grew by 43% year‑on‑year with average customer spend increasing partly as a result of customers having more complex requirements 
and needing higher levels of security.
Revenue for the Group for the year to 30 June 2008 was £35.28 million, up 58% on the previous year. The previous year included just under six months’ revenue 
from the acquisition of Group NBT A/S and the year under review included eleven months of revenue from Envisional Solutions Limited (Envisional) which was 
acquired in July 2007. On a like‑for‑like basis organic growth in revenue, excluding the impact of acquisitions was 19%. 
Profit before tax (PBT) was £4.21 million, up 36% on last year. On an underlying basis excluding amortisation and restructuring costs, profit before tax and amortisation 
(PBTA) was £5.51 million, up 49% on last year. Underlying fully‑diluted earnings per share (EPS), excluding amortisation and restructuring costs, were 16.26 pence 
up 32% on last year. Growth in EPS was lower than growth in PBTA as the number of shares in issue has increased as a result of acquisitions.
The Group’s cash position at the end of the financial year was largely neutral with a net cash balance of £0.66 million compared to net debt of £1.95 million at 
30 June 2007. Part of the debt required to make the recent acquisitions has been paid down and good cash generation has meant that cash now just exceeds debt.
DOmain name management Revenue from domain name management services was £15.71 million for the year under review, including a full year of revenue for Speednames Business, which 
was part of the acquisition of Group NBT A/S. Within this the revenue for NetNames Platinum Service was £9.79 million, up 38% on the previous year. Over time 
Speednames Business customers will be converted to NetNames Platinum Service. This service is more appropriate for the market and as a result has a higher level 
of growth. 
The process has commenced with all new sales now being made as NetNames Platinum Service with good sales being made in Denmark, Switzerland and Germany 
through the teams that previously sold Speednames Business. We also continue to see good growth for NetNames Platinum Service in our other offices with the 
UK and US performing particularly well. 
As the market matures we are able to take advantage of opportunities for consultancy and advisory work including the recovery of domain names. In addition 
to this we have started to sell a range of brand protection products, based on Envisional’s technology, to our domain name management customer base. 
“
This has been another excellent year for the 
Group. We have made considerable progress 
with the new additions to the Group and 
although there is still more to do we have 
benefited from their contribution. Our organic 
growth remains strong and the market for our 
services continues to be robust. We are mindful 
of the economic climate and are working hard 
to ensure our continued growth.
”
Chief Executive’s Review GROUP NBT PLC ANNUAL REPORT 2008
6
manageD hOsting services Managed hosting revenue for the year was £5.07 million, up 43% on the previous year. Organic growth, adjusted for almost two months of revenue for a small 
acquisition made in August 2006, was 35%. It was another excellent performance with new customer acquisition continuing apace with average revenue per 
customer increasing. Not only is existing customers’ spend growing but we are increasingly able to provide more complex solutions which enable us to attract 
larger customers.
The market continues to be very buoyant, driven by the increase in the use of the Internet for business purposes with transactional websites becoming more 
important. Our product line has kept pace with market requirements and we now concentrate on highly resilient services with high levels of support for which 
customers will pay premium prices.
As our business has grown we have invested in the underlying infrastructure to ensure that we are able to continue to provide a market leading service. 
The investment made during the year under review will enable us to continue to offer highly resilient services and to be able to scale the business to accommodate 
future growth.
Costs have increased in this business as data centre prices have been impacted by increasing demand and a shortage of modern, state‑of‑the‑art facilities. 
We are addressing this not only by reviewing prices but also by reviewing our portfolio of data centre space in order to make more effective use of space 
and power.
reseller anD P artner business
Ascio, our reseller brand, had revenue of £5.37 million for the year. This has increased year‑on‑year by 20%, a pleasing increase in its rate of growth since 
we acquired the business in January 2007.
Growth comes from sales made by existing partners and by the addition of new partners. There is a relatively long sales cycle as it can take some time to bring a 
new partner onto the system and for them to start putting sales through Ascio. The year under review saw good growth from existing customers helped by the 
introduction of several new domain name suffixes including .asia, with renewal rates remaining high. We also experienced high levels of sales to new partners 
many of which contributed little to revenue during the year but can be expected to add to revenue growth this year.
Online services Online services include domain names, email services and shared hosting. Revenue comes from four of the Group’s brands although we concentrate on Easily and 
Speednames Online as these brands are specifically targeted at the online market. Revenue for online services was up 4% to £7.77 million for the year under review 
which included a full year of revenue from Speednames Online. Within this, revenue for the Easily brand grew by 6% over the year and revenue for Speednames 
Online grew by 9%. Revenue from the other brands continued to decline in line with expectations.
Our online services are targeted at small businesses and consumers who require a premium product with high levels of service and support. To address this market 
we continue to add to our product capabilities to enable us to remain competitive. Over time we expect all new revenue from this market to come from Easily and 
Speednames Online. 
envisiOnal We acquired Envisional in July 2007 in order to be able to provide full brand management solutions to our domain name management customers. During the year 
we have consolidated the customer base and have repackaged Envisional’s technology to be able to offer services to our NetNames Platinum Service customers. 
We have also benefited from being able to offer complete solutions to certain larger customers which have this as a requirement.
Revenue for the year was £1.36 million, a small increase on the previous year. We have kept and developed most of the existing customers and have added some 
excellent new customers with considerable interest being built for future sales. This is a relatively new market and with a long sales cycle. It remains strategically 
important that we are able to offer these services in order to remain competitive in the domain name management market and over time we expect to see these 
products sold as a matter of course alongside the NetNames Platinum Service.
integratiOn We are now well advanced with the integration of Group NBT A/S. The initial work to integrate people and processes was largely completed some time ago, 
the company now operates as an integrated part of the Group and as a result we have been able to reduce our staff costs and to gain operational improvements. 
Over the next year we plan to complete the integration of the technical systems on which our services are built. We have taken this opportunity to merge the systems 
onto a common, updated technical platform. It uses the best elements from each system or service and will provide a better, more competitive service for customers. 
While we have started the process of consolidating our services, the migration of Speednames Business customers to the NetNames Platinum Service will continue 
at a pace dictated by contract renewal cycles.
Restructuring costs increased from £0.24 million to £0.51 million. While the previous year’s costs mostly comprised termination payments, the majority of the 
current year’s expenditure related to costs incurred in connection with the integration of technical systems.
Chief Executive’s Review continued GROUP NBT PLC ANNUAL REPORT 2008
7
PrOfit The gross margin rate of the Group declined to 77.5% from 78.1% in the previous year, largely as a result of changes to the product mix. Operating expenses excluding 
amortisation, restructuring costs and share‑based payments increased from £13.47 million to £21.47 million.
As noted in the 2007 Annual Report four underlying measures – operating profit, operating margin, pre‑tax profit and EPS are used as key performance indicators 
within the business. We consider they provide a clearer picture of progress than the Generally Accepted Accounting Practice (GAAP) measures and are therefore 
useful to investors.
Underlying operating profit (operating profit before share‑based payments, amortisation and restructuring costs) was £5.89 million (2007: £3.98 million), up 48%. 
Underlying operating profit margin was 16.7%, down from 17.8% in the previous year. This was due to the inclusion of Envisional which made a loss and excluding 
this, margins have improved overall. GAAP operating profit was £4.42 million (2007: £3.13 million), up 41%. 
Underlying pre‑tax profit (excluding amortisation and restructuring costs) was £5.51 million (2007: £3.70 million), up 49%. GAAP pre‑tax profit was £4.21 million 
(2007: £3.10 million), up 36%.
Basic underlying EPS (excluding amortisation and restructuring costs) was 16.75 pence (2007: 12.73 pence), up 32%. Fully‑diluted underlying EPS was 16.26 pence 
(2007: 12.29 pence), up 32%. Under GAAP, basic EPS was 13.02 pence (2007: 10.55 pence), up 23% and fully‑diluted EPS was 12.64 pence (2007: 10.18 pence), 
up 24%.
t axatiOn A tax charge of £0.94 million (2007: £0.73 million) arose in the year representing an effective tax rate of 22.3% (2007: 23.7%) which now includes deferred tax 
adjustments in respect of amortisation and other adjustments under International Financial Reporting Standards (IFRS). The effective tax rate on profit excluding 
amortisation and restructuring costs and related tax credits was 23.4% (2007: 22.9%). 
The effective rate is below the statutory rate of corporation tax of 29.5% due largely to the recognition of losses and other timing differences previously unrecognised 
due to uncertainty relating to their recoverability. 
In addition to the deferred tax adjustments arising from the transition to IFRS, the net assets of Group NBT A/S at acquisition were revised within the permitted 
period to include a deferred tax asset of £0.9 million in respect of tax losses and other timing differences estimated to be recoverable and a corresponding 
adjustment was made to reduce the goodwill arising on acquisition. The balance at 30 June 2008 was £0.75 million.
cash fl Ow Net cash inflow from operating activities was £7.83 million, up from £3.99 million in the previous year. The level of cash generation was higher than in the previous 
year reflecting, in part, the normalisation of billing issues noted in the 2007 Annual Report and the strong cash generation characteristics of the business. 
During the year £1.01 million was paid in respect of deferred contingent consideration relating to the acquisition of Envisional which was funded from existing 
working capital.
Expenditure on tangible fixed assets increased from £1.41 million to £2.19 million due to the growth in the managed hosting business and continued investment 
in the technical infrastructure.
At the year end the Group had cash balances of £4.66 million (2007: £3.05 million) and debt of £4 million (2007: £5 million) before amortised facility fees, resulting 
in a net cash position of £0.66 million at the year end (2007: net debt of £1.95 million).
DiviDenD
An interim dividend of 0.8 pence was paid on 21 April 2008. A final dividend of 1.6 pence is proposed bringing the total for the year to 2.4 pence (2007: 1.8 pence), 
an increase of 33%. Subject to its approval at the Annual General Meeting on 27 November 2008, the final dividend will be payable on 7 January 2009 to shareholders 
on the register on 5 December 2008. 
internatiOnal financial rePOrting stanD arDs (ifrs)
The Group is required to adopt IFRS for reporting purposes for accounting periods beginning after 1 July 2007 and therefore the Group’s consolidated financial 
statements have been prepared under these standards. One of the main changes has been the accounting treatment of goodwill arising from acquisitions which 
has resulted in a decrease in the annual amortisation charge under UK GAAP from circa £2.2 million to circa £0.8 million. 
geOff wicks chief executive Officer GROUP NBT PLC ANNUAL REPORT 2008
8
Report on Corporate Governance
The Company is listed on the Alternative Investment Market (AIM) and is not required to comply with the provisions of the 2003 FRC Combined Code 
(the Code) and therefore this is not a statement of compliance as required by the Code. Nevertheless the Board is committed to ensuring that proper standards 
of corporate governance operate throughout the Group and has followed the principles of the Code so far as is practicable and appropriate for the nature and size 
of the Group.
A statement of the Directors’ responsibilities in respect of the financial statements is set out on page 14. Below is a brief description of the role of the Board and its 
Committees, followed by a statement regarding the Group’s system of internal controls. The Directors recognise the value of, and are committed to, high standards 
of corporate governance.
Board of directors
The Board currently comprises the Non‑executive Chairman, the Chief Executive Officer, a further two Executive and four Non‑executive Directors. The Directors’ 
biographies, set out on page 9, demonstrate the broad range of experience and knowledge they bring to the Company enabling them to offer sound judgment on 
the proper management of the Group.
The Board meets at least ten times per year and has a schedule of matters specifically reserved for it for decision. It is responsible for approving the overall Group 
strategy, acquisitions, major capital expenditure projects, reviewing the trading performance, ensuring adequate funding and reporting to shareholders. To enable 
the Board to discharge its duties, management provides appropriate and timely information in advance of each meeting. All Directors have access to advice from 
the Company Secretary and are able to take independent professional advice as required.
The longest serving Directors, since their last appointment or reappointment, are Jonathan Robinson and Richard Madden, who offer themselves for re‑election 
at the next Annual General Meeting.
The Board of Directors considers all the Non‑executive Directors to be independent of management and, in making this decision, have had regard to guidance 
issued by several of the Company’s largest institutional investors. Richard Madden is the Senior Independent Director.
The following Committees deal with specific aspects of the Group’s affairs:
remuneration c ommittee
The Remuneration Committee is chaired by Keith Young. Its other members are Tim Ashley, Richard Madden and John Parcell. The Committee meets at least 
once a year. The Board’s report to shareholders on Directors’ remuneration is set out on pages 10 and 11.
audit c ommittee
The Audit Committee is chaired by Richard Madden. Its other members are Keith Young and John Parcell. Meetings may also be attended, by invitation, by the 
Chief Executive Officer and the Finance Director. The Committee meets at least twice a year and provides a forum for reporting by the Group’s external auditors.
relationship with shareholders
Communication with shareholders is given high priority. The Chairman’s Statement and the Chief Executive’s Review on pages 4 to 7 include a detailed review 
of the business and future developments. There is regular dialogue with institutional shareholders including presentations after the Group’s announcements 
of the interim and year‑end results. The Company’s website carries reproductions of the Group’s Annual Reports and announcements.
The Annual General Meeting provides a further forum for private and institutional shareholders to communicate with the Board and their active participation 
is welcomed. Details of resolutions to be proposed at the Annual General Meeting are set out in the enclosed Notice of Annual General Meeting.
internal control
The Directors are responsible for the Group’s system of internal control and for reviewing its effectiveness. However, such a system can only provide reasonable, 
but not absolute, assurance against material misstatement or loss. The Board believes that the Group has internal control systems in place appropriate to the size 
and nature of its business.
An ongoing process for identifying, evaluating and managing the significant risks faced by the Group has been in place throughout the year. That process is regularly 
reviewed by the Board and accords with the Internal Control: Guidance for Directors, in the Combined Code.
The Board intends to keep its risk control procedures under constant review particularly as regards the need to embed internal control and risk management 
procedures further into the operations of business, both in the UK and overseas, and to deal with areas of improvement, which come to management and 
the Board’s attention.
financial reporting
There is a comprehensive budgeting system with an annual budget approved by the Board. Monthly trading results, balance sheets and cash flow statements 
are reported against the budget and prior year. Updated forecasts are presented in light of the reported trading performance.
operating control
Each Executive Director has defined responsibility for specific aspects of the Group’s operations. The Executive Directors, together with key senior executives, 
meet regularly to discuss day‑to‑day operational matters.
investment appraisal
Capital expenditure is controlled via the budgetary process and set levels of authorisation. For expenditure beyond a specified level, a written proposal is submitted 
to the Board for approval.
risk management
The Board is responsible for identifying the major business risks faced by the Group and for determining the appropriate course of action to manage such risks.
All potential acquisitions are subject to appropriate due diligence. GROUP NBT PLC ANNUAL REPORT 2008
9
directors’ and officers’ liaBility insurance and indemnities
The Company has purchased insurance to cover its Directors and officers against any costs arising from defending themselves in legal proceedings taken against 
them as a direct result of duties carried out on behalf of the Company.
As at the date of this report, indemnities are in force under which the Company has agreed to indemnify the Directors, to the extent permitted by law and by the 
Company’s Articles of Association, in respect of losses arising out of, or in connection with, the execution of their powers, duties and responsibilities, as Directors 
of the Company or any of its subsidiaries.
going concern
After making appropriate enquiries, the Directors have formed a judgment at the time of approving the Annual Accounts that there is a reasonable expectation that 
the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Directors continue to adopt the going 
concern basis in preparing the Annual Accounts.
 
John p arcell
non‑executive chairman
John Parcell spent thirty years at Reuters Group plc. He joined the main Board in 1996, and was chief executive officer of Reuters Information, the group’s major 
division, in charge of all news reporting and financial data services. Since leaving Reuters in 2000, he has taken several non‑executive appointments with smaller listed 
companies, development‑stage businesses, and not‑for‑profit organisations.
geoff wicks
chief executive officer
Geoff Wicks joined the Board in September 2001. He had spent the previous twenty years with Reuters Group in a variety of roles, including heading various 
UK divisions and time in France and the Nordic region. Latterly he was director of corporate relations. Prior to Reuters, Geoff worked in the City within the banking 
and insurance industries.
Jonathan roBinson
chief operating officer
Jonathan Robinson is a co‑founder of Group NBT . He has a PhD in Materials Engineering and a BSc (Physics) from the University of Cape Town. He previously held 
research posts at Imperial College, London and the Rolls‑Royce Technology Centre at the University of Cambridge. Jonathan is a current non‑executive director of .
info domain registry Afilias Limited and has been a member of the board at the .uk domain registry Nominet (UK) Limited.
raJ nagevadia
finance director
Raj Nagevadia joined Group NBT as Financial Controller in October 2003. He became Finance Director in February 2004 and joined the Board in November 2005. Prior to 
this Raj was Financial Controller at Tempo plc, a national electrical retailer, for six years and he has held various roles in an offshore oil and gas construction business 
and at a leading firm of accountants.
k eith y oung
non‑executive director
Keith Y oung is an entrepreneur with considerable experience in the Internet, communications and publishing industries. He co‑founded the Group NBT business in 1995 and 
was also a significant shareholder in Easynet Group plc prior to its flotation. In addition, he has significant interests in several other companies spanning a diverse range 
of sectors.
tim ashley
non‑executive director
Tim Ashley was responsible for Group NBT’s branding and marketing strategy from March 1999 to September 2000. He was appointed to the Board during 1999, 
having previously founded Wicked Web Limited in 1995. Prior to that he spent ten years as an investment banker, most recently with Lehman Brothers. Tim holds 
degrees from both Oxford and Cambridge Universities.
richard madden
non‑executive director
Richard Madden is an investment banker and has experience in equity and M&A transactions throughout Europe and the USA. He qualified as a chartered 
accountant with Arthur Andersen and holds a degree in Classics from the University of Cambridge.
claus anderson
non‑executive director
Claus is a partner in Nordic Venture Partners, a venture capital firm and a significant shareholder of Group NBT. Claus has been with Nordic Venture Partners 
since its inception in early 2000 and has focused primarily on enterprise software and internet‑related investments. Prior to this he worked for a number of 
Nordic financial institutions as an investment banker in various European countries and holds a degree in Credit and Finance from Copenhagen Business School. 
Board of Directors GROUP NBT PLC ANNUAL REPORT 2008
10
The Company is listed on the Alternative Investment Market (AIM) and is therefore not required to prepare a report on Directors’ remuneration. The following 
information is voluntarily disclosed. 
remuneration c ommittee
The Committee consists of four Non‑executive Directors: John Parcell, Tim Ashley and Richard Madden, under the chairmanship of Keith Young. None of the 
Committee members have any personal financial interests (other than as shareholders), conflicts of interest arising from cross‑directorships or day‑to‑day involvement 
in running the business. The Committee consults the Chief Executive about its proposals and has access to professional advice from inside and outside the Company. 
The Committee makes recommendations to the Board. No Director plays a part in any discussions about their own remuneration.
remuneration policy
Executive remuneration packages are prudently designed to attract, motivate and retain directors of the high calibre needed to maintain the Company’s position 
as a market leader. The performance measurement of the Executive Directors and key members of senior management and the determination of their annual 
remuneration package are undertaken by the Committee. The remuneration of the Non‑executive Directors is determined by the Board within the limits set 
out in the Articles of Association.
There are four main elements of the remuneration package for Executive Directors and senior management:
à basic annual salary (including Directors’ fees) and benefits;
à annual bonus payments;
à share option incentives; and
à pension arrangements.
Basic salary
An Executive Director’s basic salary is determined by the Remuneration Committee at the beginning of each year and when an individual changes position or 
responsibility. In deciding appropriate levels the Committee considers the Group as a whole and relies on objective research and independent surveys. Executive 
Directors’ contracts of service, which include details of remuneration, will be available for inspection at the Annual General Meeting. The Executive Directors are 
entitled to accept appointments outside the Company providing the Chairman’s permission is sought in advance.
annual Bonus payments
The Committee establishes the objectives that must be met for each financial year if a cash bonus is to be paid and these objectives target both revenue and 
profit growth. Account is also taken of the relative success of the different parts of the business for which the Executive Directors are responsible and the extent 
to which the strategic objectives set by the Board are being met.
share options
Share option allocations are designed to attract, motivate and retain employees.
directors’ pension
Up to 10% of salary is paid by the Company into Directors’ personal pension schemes, although they may also sacrifice basic annual salary to supplement 
pension contributions.
performance graph
The following graph shows the Company’s share price performance, compared with the performance of the FTSE AIM and the FTSE Small Cap indices. The FTSE 
AIM index was selected as the Company is a constituent of that index. The FTSE Small Cap. Index was selected, as this is believed to be the most appropriate and 
broad comparator of the Company’s performance.
July 2003 to June 2008
June 2003
Change %
June 2004 June 2005 June 2006 June 2007 June 2008
Change %
June 2004 June 2005 June 2006 June 2007 June 2008
Directors’ Remuneration Report GROUP NBT PLC ANNUAL REPORT 2008
11
directors’ contracts
Executive Directors currently have up to six‑month rolling service contracts. The Company may have a contractual obligation to pay compensation for the unexpired 
portion of a Director’s contract if it is terminated early. No other payments are made for compensation.
non‑executive directors
All Non‑executive Directors have between six‑month and twelve‑month rolling contracts. Remuneration is determined by the Board based within the limits 
set out in the Articles of Association and based upon independent surveys of fees paid to non‑executive directors of similar companies. The fee paid to each 
Non‑executive Director in the year was £16,500 with the exception of Claus Anderson, who did not receive a fee. John Parcell received £22,500 for his services 
as Non‑executive Chairman. 
directors’ remuneration
Directors’ remuneration for the year was as follows:
    Annual  Other  2008  2007 
   Fees bonuses Pensions benefits Total Total 
   £’000 £’000 £’000 £’000 £’000 £’000
J Parcell   23  —  —  —  23  23 
G Wicks   163  73  —  5  241  233 
J Robinson   123  67  24  9  223  212 
R Nagevadia    119  61  10  7  197  159 
T Ashley   17  —  —  —  17  17 
K Young   17  —  —  —  17  17 
R Madden   17  —  —  —  17  17 
C Anderson   —  —  —  —  —  — 
Year ended 30 June 2008   479  201  34  21  735  678 
Year ended 30 June 2007   437  182  32  27     
Other benefits consist of car allowances and private health insurance.
share options
Details of Directors’ interests in share options of the Company are set out below:
  At Granted Exercised at Exercise    
  1 July during during 30 June price Date of Exercisable Expiry 
 Scheme  2007 the year the year  2008 £ grant from date
G Wicks         
 EMI  450,000  — —  450,000  0.25 30/06/03 30/06/04 28/06/14
 Unapproved  105,000  — —  105,000  0.25 30/06/03 30/06/04 27/06/13
 Unapproved  70,000  — —  70,000  3.14 26/03/07 01/07/07 23/03/17
  Unapproved —   50,000  —   50,000  3.03 18/07/07 30/06/08 15/07/17
J Robinson         
 EMI  180,000  — —  180,000  0.25 30/06/03 30/06/04 27/06/13
 EMI  18,000  — —  18,000  3.14 26/03/07 01/07/07 23/03/17
 Unapproved  52,000  — —  52,000  3.14 26/03/07 01/07/07 23/03/17
  Unapproved —  50,000  —  50,000  3.03 18/07/07 30/06/08 15/07/17
R Nagevadia         
 EMI  4,000  — —  4,000  0.01 07/04/04 30/06/04 05/04/14
 EMI  38,610  — —  38,610  1.30 10/04/06 10/04/06 07/04/16
 EMI  14,000  — —  14,000  3.14 26/03/07 01/07/07 23/03/17
 Unapproved  56,000  — —  56,000  3.14 26/03/07 01/07/07 23/03/17
  Unapproved  —  50,000  —  50,000  3.03 18/07/07 30/06/08 15/07/17
R Madden         
  Unapproved  100,000  — —  100,000  1.30 10/04/06 10/04/06 07/04/16
On 22 July 2008, Geoff Wicks, Jonathan Robinson and Raj Nagevadia were each granted 50,000 options at an exercise price of £2.29 vesting on 30 June 2009 and 
expiring on 22 July 2018. In addition to this, Raj Nagevadia was granted 25,000 options at an exercise price of £2.29 vesting on grant and expiring on 22 July 2018.
The ordinary share price ranged from £1.95 to £3.17 during the year and stood at £2.06 at the year‑end.
On behalf of the Board
k eith y oung
chairman of the remuneration c ommittee
20 octoBer 2008  GROUP NBT PLC ANNUAL REPORT 2008
12
The Directors present their Annual Report and Accounts for the year ended 30 June 2008.
principal activities
The principal activities of the Group during the year were the provision of domain name management services, web hosting, brand protection and related services.
Business review
A review of the business and future developments together with the key performance indicators of business performance is set out in the Chairman’s Statement 
and the Chief Executive’s Review on pages 4 to 7.
results and dividends
The results of the Group for the year are shown in the Income Statement on page 16.
An interim dividend of 0.8 pence (2007: 0.6 pence) per ordinary share was paid on 21 April 2008. The Directors recommend the payment of a final dividend 
of 1.6 pence per ordinary share making the total for the year of 2.4 pence per share (2007: 1.8 pence).
principal risks and future developments
The Directors believe that the principal risks faced by the Group arise in the areas of its products and services sold to customers, its technology platforms and its staff.
The Group’s services are primarily delivered over the Internet via a complex technical infrastructure. We operate in an environment where there may be rapid 
changes in the market, technology and operational methodologies. The Group therefore has an ongoing programme of market and competitive review, product 
and services development and infrastructure enhancement.
The Group operates in growing markets with varying degrees of competition in the different sectors it serves. In the domain name management market, where the 
Group has operations in both Europe and the US, it has a leading position in Europe primarily through its high market share in the UK. While its position in the US 
is steadily improving, this market is home to the Group’s major domain name management competitors. The managed hosting market, where the Group operates 
largely in the UK, has fragmented competition and the Group has positioned itself as a mid‑market specialist provider. The online market is large with substantial 
competition and the Group differentiates its offering through cost effective solutions with after sales service.
The Group’s products, services and infrastructure are supported by skilled staff; from account management and fulfilment through to technical support. The Group 
is therefore reliant upon its ability to attract, train and retain the right mix of staff.
The Directors monitor the risks facing the Group on a regular basis.
financial risks
Details of the Group’s financial risks together with exposures to interest rate, credit, liquidity and foreign exchange risks are contained in note 19 – Financial instruments, 
of the consolidated financial statements.
d irectors
The Directors of the Company who served during the year to 30 June 2008 are shown below together with their interests in the shares of the Company.
       at At 
        30 June 2008  1 July 2007
J Parcell       1,575,877 1,575,877
G Wicks       50,000 50,000
J Robinson       1,330,322 1,570,322
R Nagevadia        2,500 2,500
K Young       1,348,902 1,837,902
T Ashley       1,907,500 1,907,500
R Madden       —  — 
C Anderson*       —  — 
* Claus Anderson is a partner in Nordic Venture Partners K/S, a venture capital firm, which also had a substantial shareholding in the ordinary share capital of the Company. 
The Directors’ interests in share options of the Company are detailed on page 11. 
In accordance with the Company’s Articles of Association, Jonathan Robinson and Richard Madden, retire by rotation and offer themselves for re‑election at the 
next Annual General Meeting.
directors’ and officers’ liaBility insurance and indemnities
The Company has purchased insurance to cover its Directors and officers against any costs arising from defending themselves in legal proceedings taken against 
them as a direct result of duties carried out on behalf of the Company.
As at the date of this report, indemnities are in force under which the Company has agreed to indemnify the Directors, to the extent permitted by law and by the 
Company’s Articles of Association, in respect of losses arising out of, or in connection with, the execution of their powers, duties and responsibilities, as Directors 
of the Company or any of its subsidiaries.
Directors‘ Report GROUP NBT PLC ANNUAL REPORT 2008
13
suBstantial shareholdings
At 20 October 2008, the Company had or had been notified of the following holdings of 3% or more in the ordinary share capital of the Company:
       Number %
BlackRock Group*       3,736,560 14.8 
Herald Investment Trust       2,033,250 8.1
Nordic Venture Partners K/S       1,807,268 7.2
Hargreave Hale Limited*       1,548,239 6.2
Internet Ventures Scandinavia (IVS)       1,319,704 5.2
Jupiter Asset Management*       841,958 3.3
* Part or all of the holdings arise as a result of discretionary investment management arrangements.
employees
Group NBT offers a wide range of services to companies and relies on the knowledge and expertise of its staff. The Company endeavours to ensure that it consistently 
improves the Group’s performance by attracting and retaining the right people and by developing the skills of its staff through training and development programmes.
Performance is rewarded on merit without regard to gender, age, race, colour, religion, sexual orientation or marital status. The Company encourages the involvement 
and participation of staff in building a successful business. Communication plays a key part in creating an environment in which all staff can contribute and develop 
to their full potential.
environment
The Group acknowledges the importance of environmental matters and where possible utilises environment friendly policies in its offices such as recycling 
and energy efficient practices.
supplier payment policy
The Group agrees terms and conditions with individual suppliers at the time orders for the services are placed. It is the Group’s policy to make payment 
in accordance with those terms and conditions providing they have been fully complied with by the supplier.
The Company’s creditor days at 30 June 2008, calculated in accordance with the requirements of the Companies Act 1985, were 34 (2007: 33). 
research and development
The Group operates within the rapidly developing internet environment. There are few, if any, proprietary systems available to meet its product requirements and as a 
result the Group has developed, in‑house, the systems required to meet its customers’ needs. These costs of research and development have been written off to the 
consolidated Income Statement as they are incurred where permitted by IAS 38, Intangible Assets, and not carried forward as assets in the Group’s balance sheet.
international financial reporting standards (ifrs)
The Group is required to adopt IFRS for reporting purposes for accounting periods beginning after 1 July 2007 and therefore the Group’s consolidated financial 
statements have been prepared under these standards. 
going concern
After making appropriate enquiries, the Directors have formed a judgment at the time of approving the Annual Accounts that there is a reasonable expectation that 
the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Directors continue to adopt the going 
concern basis in preparing the Annual Accounts.
annual general meeting
The notice of the Annual General Meeting of the Company, which will be held on 27 November 2008, and the resolutions proposed are set out in the enclosed 
Notice of Annual General Meeting. The Board of Directors believes that the resolutions proposed are in the best interests of the shareholders and therefore, 
recommend that the shareholders vote in favour of those resolutions.
auditors
All of the Directors have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that 
the auditors are aware of that information. The Directors are not aware of any relevant audit information of which the auditors are unaware.
A resolution to reappoint BDO Stoy Hayward LLP as auditors will be proposed at the next Annual General Meeting.
By order of the Board
raJ nagevadia
c ompany secretary
20 octoBer 2008 GROUP NBT PLC ANNUAL REPORT 2008
14
Statement of Directors’ Responsibilities
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Group, 
for safeguarding the assets of the Company, for taking reasonable steps for the prevention and detection of fraud and other irregularities and for the preparation 
of a Directors’ Report which complies with the requirements of the Companies Act 1985. The Directors are responsible for preparing the Annual Report and the 
financial statements in accordance with the Companies Act 1985. The Directors are also required to prepare financial statements for the Group in accordance with 
International Financial Reporting Standards (IFRS) as adopted by the European Union and the rules of the London Stock Exchange for companies trading securities 
on the Alternative Investment Market. The Directors have chosen to prepare financial statements for the Company in accordance with UK Generally Accepted 
Accounting Practice (UK GAAP). 
group financial statements
International Accounting Standard 1 requires that financial statements present fairly for each financial year the Group’s financial position, financial performance and 
cash flows. This requires faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria 
for assets, liabilities, income and expenses set out in the International Accounting Standards Board’s “Framework for the preparation and presentation of financial 
statements”. In virtually all circumstances, a fair presentation will be achieved by compliance with all applicable IFRSs. A fair presentation also requires the Directors to:
à consistently select and apply appropriate accounting policies;
à present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; and
à  provide additional disclosures when compliance with the specific requirements in IFRSs is insufficient to enable users to understand the impact of particular 
transactions, other events and conditions on the entity’s financial position and financial performance.
parent company financial statements
Company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company 
and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:
à seek suitable accounting policies and then apply them consistently;
à prepare financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business;
à make judgments and estimates that are reasonable and prudent; and
à state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.
Financial statements are published on the Group’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination 
of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Company’s website is the responsibility 
of the Directors. The Directors’ responsibility also extends to the ongoing integrity of the financial statements contained therein.
  GROUP NBT PLC ANNUAL REPORT 2008
15
Report of the Independent Auditors
independent auditors’ report to the shareholders of group nBt plc
We have audited the Group and Parent company financial statements (the financial statements) of Group NBT plc for the year ended 30 June 2008 which comprise 
the Consolidated Income Statement, the Consolidated Statement of Changes in Equity, the Consolidated and Company Balance Sheets, the Consolidated Cash Flow 
Statement, and the related notes. These financial statements 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 Group financial statements in accordance with applicable law and International Financial 
Reporting Standards (IFRSs) as adopted by the European Union and for preparing the Parent company financial statements in accordance with applicable law 
and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of Directors’ Responsibilities. 
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing 
(UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and have been properly prepared in accordance with the 
Companies Act 1985 and whether the information given in the Directors’ Report is consistent with those financial statements. We also report to you if, 
in our opinion, 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 regarding Directors’ remuneration and other transactions is not disclosed.
We read other information contained in the Annual Report, and consider whether it is consistent with the audited financial statements. This other information 
comprises only the Directors’ Report, the Statement of Directors’ Responsibilities, the Chairman’s Statement, the Chief Executive’s Review, the Corporate 
Governance Statement and the Directors’ Remuneration Report. We consider the implications for our report if we become aware of any apparent misstatements 
or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.
Our report has been prepared pursuant to the requirements of the Companies Act 1985 and for no other purpose. No person is entitled to rely on this report unless 
such a person is a person entitled to rely upon this report by virtue of and for the purpose of the Companies Act 1985 or has been expressly authorised to do so by 
our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly 
disclaim any and all such liability.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes 
examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant 
estimates and judgments made by the Directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the 
Group’s and Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient 
evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error . 
In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
opinion
In our opinion:
à  the Group financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union, of the state of the Group’s affairs 
as at 30 June 2008 and of its profit for the year then ended;
à  the Parent company financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state 
of the Parent company’s affairs as at 30 June 2008;
à the financial statements have been properly prepared in accordance with the Companies Act 1985; and
à the information given in the Directors’ Report is consistent with the financial statements.
Bdo stoy hayward llp
chartered accountants and registered auditors, l ondon
20 octoBer 2008 GROUP NBT PLC ANNUAL REPORT 2008
16
        2008  2007 
      Note £’000  £’000 
revenue      3 35,281  22,356 
Cost of sales       7,926  4,903 
Gross ProfiT          27,355  17,453 
Operating expenses       22,939  14,326 
oPera TinG ProfiT         4,416 3,127
Operating profit          4,416  3,127 
Share‑based payments          177  255
Amortisation          782  359
Restructuring costs          515  242
underl YinG oPera TinG ProfiT          5,890  3,983
Finance income      6 124  147 
Finance expense      7 (329) (179)
ProfiT before T axa Tion          4,211  3,095 
Taxation      8 (939) (733)
ProfiT for The Y ear         3,272  2,362 
     
Earnings per share     
Basic      10 13.02p 10.55p
Diluted      10 12.64p 10.18p
All amounts relate to continuing activities.
Consolidated Income Statement 
for the year ended 30 June 2008
The notes on pages 20 to 40 form part of these consolidated financial statements. GROUP NBT PLC ANNUAL REPORT 2008
17
Consolidated Statement of Changes in Equity
for the year ended 30 June 2008
       Cumulative  
  Share Share Merger Other translation Retained  
  capital premium reserve reserve reserve profit  Total 
  £’000 £’000 £’000 £’000 £’000 £’000 £’000
Year ended 30 June 2008       
Balance at 1 July 2007  248 3,487 10,751 1,355 71 4,806 20,718
Exchange translation differences  —  —  —  —  3,010 —  3,010
Deferred tax recognised directly in equity  —  —  —  (263) —  —  (263)
Net expense recognised directly in equity  —  —  —  (263) 3,010 —  2,747
Profit for the period  —  —  —  —  —  3,272 3,272
Total recognised income and expense  —  —  —  (263) 3,010 3,272 6,019
Dividends  — — — — — (503) (503)
Share‑based payment credit  —  —  —  177 —  —  177
Issue of share capital  3 —  1,257 —  —  —  1,260
balance a T 30 June 2008  251 3,487 12,008 1,269 3,081 7,575 27,671
Year ended 30 June 2007       
Balance at 1 July 2006  204 3,462 1,044 295 —  2,754 7,759
Exchange translation differences  —  —  —  —  71 —  71
Deferred tax recognised directly in equity  —  —  —  382 —  —  382
Net income recognised directly in equity  —  —  —  382 71 —  453
Profit for the period  —  —  —  —  —  2,362 2,362
Total recognised income and expense  —  —  —  382 71 2,362 2,815
Dividends  —  —  —  —  —  (310) (310)
Share‑based payment credit  —  —  —  678 —  —  678
Issue of share capital  44 25 9,707 —  —  —  9,776
Balance at 30 June 2007  248 3,487 10,751 1,355 71 4,806 20,718
The notes on pages 20 to 40 form part of these consolidated financial statements. GROUP NBT PLC ANNUAL REPORT 2008
18
Consolidated Balance Sheet 
as at 30 June 2008
        2008  2007 
      Note £’000  £’000 
asseT s   
non‑currenT asseT s   
Goodwill      11 27,430  21,461 
Other intangible assets      11 3,370  2,984 
Property, plant and equipment      12 2,661  1,909 
Deferred tax asset      15 1,050  1,175 
        34,511  27,529 
curren T asseT s   
Trade and other receivables      14 4,995  4,609 
Cash and cash equivalents      24 4,658  3,051 
        9,653  7,660 
 To Tal asseT s       44,164  35,189 
liabiliTies   
currenT liabiliTies   
Bank loan      17 (983) (983)
Trade and other payables      16 (11,290) (9,031)
Taxation       (620) (498)
        (12,893) (10,512)
non‑currenT liabiliTies   
Bank loan      17 (2,957) (3,940)
Provision      18 (643) — 
Deferred tax liability      15 —  (19)
         (3,600) (3,959)
To Tal liabiliTies        (16,493) (14,471)
neT asseT s        27,671  20,718 
caPiT al and reserves   
Called up share capital      20 251  248
Share premium account       3,487  3,487
Merger reserve       12,008  10,751
Other reserve       1,269  1,355
Cumulative translation reserve       3,081  71
Profit and loss account       7,575  4,806
To Tal equiTY        27,671  20,718 
These financial statements were approved by the Board of Directors and authorised for issue on 20 October 2008.
Signed on behalf of the Board of Directors
geoff wicks
chief executive officer
The notes on pages 20 to 40 form part of these consolidated financial statements. GROUP NBT PLC ANNUAL REPORT 2008
19
Consolidated Cash Flow Statement
for the year ended 30 June 2008
        2008  2007 
       £’000  £’000 
cash flow from oPera TinG ac TiviTies   
Profit before tax       4,211 3,095
Finance (income)/expense (net)       205 32
Depreciation and amortisation       2,271 1,301
Loss on disposal of assets       6 2
Share‑based payments       177 255
Exchange differences       (408) 71
Increase in trade and other receivables       (54) (1,418)
Increase in trade and other payables        1,420 655
Cash generated from operations       7,828 3,993
   
Taxation paid       (1,151) (841)
neT cash inflow from oPera TinG ac TiviTies        6,677 3,152
   
cash flow from invesTinG ac TiviTies   
Interest received       124 147
Purchase of property, plant and equipment       (2,190) (1,406)
Purchase of intangible assets       —  (31)
Purchase of subsidiary undertakings       (1,223) (8,625)
Net cash acquired with subsidiary undertaking       34 485
Repayment of bank loan as part of acquisition       —  (1,202)
neT cash ouTflow from invesTinG ac TiviTies        (3,255) (10,632)
   
cash flow from financinG ac TiviTies   
Interest paid       (329) (179)
Dividends paid       (503) (310)
Long term loan capital (repayment)/receipt       (983) 4,923
Proceeds from issue of share capital       —  25
Capital element of lease repayments       —  (16)
neT cash (ouTflow)/inflow from financinG ac TiviTies       (1,815) 4,443
   
neT increase/(decrease) in cash and cash equivalenT s       1,607 (3,037)
cash and cash equivalenT s a T sTar T of Period       3,051 6,088
cash and cash equivalenT s a T end of Period        4,658 3,051
The notes on pages 20 to 40 form part of these consolidated financial statements. GROUP NBT PLC ANNUAL REPORT 2008
20
Notes to the Consolidated Financial Statements
for the year ended 30 June 2008
1 accounting policies
general information
Group NBT plc (the Company) and its subsidiaries (together the Group) is a leading provider of domain names and internet‑related services. Operating in eight 
countries, it has 276 employees.
The Company is a public limited company incorporated and domiciled in the UK. The address of the registered office is 3rd Floor, Prospero House, 
241 Borough High Street, London SE1 1GA.
The Company is listed on the Alternative Investment Market (AIM).
a) Basis of preparation 
For the period beginning 1 July 2007, the Group has adopted International Financial Reporting Standards (IFRS) and the IFRIC interpretations issued by the IASB 
and those parts of the Companies Act 1985 applicable to companies preparing their accounts under IFRS in the preparation of its consolidated financial statements. 
Accordingly, this is the first year when the financial statements are prepared under IFRS and the comparatives for 2007 have been restated from UK GAAP to comply 
with IFRS. The transition date to IFRS was 1 July 2006. The disclosures required by IFRS concerning the transition from UK GAAP to IFRS are given in the reconciliation 
schedules, presented and explained in note 28.
The financial statements are prepared on the historic cost convention.
The principal accounting policies of the Group are set out below:
b) Basis of consolidation
The consolidated financial statements of the Group comprise the financial statements of the Company, and entities controlled by the Company (its subsidiaries) at 
the balance sheet date. Control is achieved where the Company has the power to govern the financial and operating policies of a subsidiary so as to obtain benefits 
from its activities. 
The results of subsidiaries acquired (or disposed) of in the year are included (or excluded) in the consolidated Income Statement from the effective date of acquisition 
or up to the effective date of disposal, as appropriate.
All intra‑group transactions, balances, income and expenses are eliminated on consolidation.
c) Business combinations
The acquisition of subsidiaries is accounted for using the purchase method. The cost of acquisition is measured as the aggregate of the fair values of the underlying 
assets, liabilities and equity instruments in exchange for control of the acquiree, plus any costs directly attributable to the business combination.
d) revenue recognition
Revenue is derived from the Group’s principal activity of the provision of internet‑related services covering domain name management, web hosting and brand 
protection services. Revenue is measured as the fair value of the consideration received or receivable; and represents amounts receivable for services provided 
in the normal course of business, net of discounts, VAT and other sales related taxes. Where services are invoiced in advance, revenue is deferred in the balance 
sheet until the services are provided. 
e) goodwill
Goodwill represents the excess of the fair value of consideration over the fair value of the identifiable net assets at the date of their acquisition. Goodwill is 
recognised as an asset and reviewed annually for impairment. Any impairment is recognised immediately in the Income Statement and is not subsequently 
reversed. On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the profit and loss on disposal.
f) impairment of assets
Goodwill is allocated to cash‑generating units for the purposes of impairment testing. The recoverable amount of the cash generating unit to which the goodwill 
relates is tested annually for impairment or when events or changes in circumstances indicate that it might be impaired. The carrying values of property, plant 
and equipment and intangible assets other than goodwill are reviewed for impairment only when events indicate that the carrying value may be impaired.
In an impairment test, the recoverable amount of the cash‑generating unit or asset is estimated to determine the extent of any impairment loss. T he recoverable 
amount is the higher of fair value less costs to sell, and the value‑in‑use to the Group. An impairment loss is recognised to the extent that the carrying value exceeds 
the recoverable amount.
In determining a cash‑generating unit’s or asset’s value‑in‑use, estimated future cash flows are discounted to their present value using a post‑tax discount rate 
that reflects current market assessments of the time value of money and risks specific to the cash‑generating unit or asset, that have not already been included 
in the estimate of future cash flows.
g) other intangible assets
Intangible assets purchased separately, such as domain names, are capitalised at cost and amortised over their useful economic life. Intangible assets acquired 
through a business combination such as customer lists and intellectual property are initially measured at fair value and amortised over their useful economic life. 
Amortisation of intangible assets is charged to the Income Statement on a straight‑line basis over the estimated useful lives of each intangible asset. 
Intangible assets are amortised from the date they are available for use.
The estimated useful lives are as follows: 
à domain names   – 20 years
à technology based assets  – 5 to 7 years
à non‑compete agreements   – 1 year
à customer lists  – 5 years GROUP NBT PLC ANNUAL REPORT 2008
21
1 accounting policies continued
general information continued 
h) property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation. The cost of an item of property, plant and equipment comprises its purchase price 
and any costs directly attributable to bringing the asset into use. Depreciation is calculated to write down the cost of all property, plant and equipment to their 
estimated residual value over their expected useful economic life as follows:
à computer equipment – 2 to 3 years
à fixtures, fittings and equipment – 3 years
à leasehold improvements  – over the period of the lease
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. The gain or loss arising on the disposal or retirement 
of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Income Statement. 
i) t axation
The tax expense represents the aggregate of the tax currently payable and deferred tax. The tax currently payable is based on taxable profit for the period. 
Taxable profit differs from net profit as reported in the Income Statement as it excludes items of income or expense that are taxable or deductible in other years 
and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted 
or substantively enacted by the balance sheet date. 
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements 
and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax assets are 
generally recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. The carrying 
amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be 
available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is 
settled or the asset is realised. Deferred tax is charged or credited in the Income Statement, except when it relates to items charged or credited directly to equity, 
in which case the deferred tax is also charged or credited directly to equity.
j) f inancial instruments
Financial assets and liabilities are recognised on the Group’s balance sheet when the Group becomes a party to the contractual terms of the financial instrument.
f inancial assets – loans and receivables
à Cash and cash equivalents
 Cash and cash equivalents include cash at bank and in hand and short term deposits with an original maturity period of less than three months.
à Trade and other receivables
  Trade receivables do not carry any interest and are stated at their fair value on initial recognition, and then subsequently at amortised cost as reduced 
by appropriate allowances for estimated irrecoverable amounts.
à Trade payables
 Trade payables are not interest bearing and are stated at their fair value on initial recognition, and then subsequently at amortised cost.
f inancial liabilities – held at amortised cost
à Loans and borrowings
  Bank borrowings represent interest bearing loans which are recorded at fair value on initial recognition, being proceeds received net of direct issue costs. 
Finance charges are accounted for on an accruals basis and are recognised in the Income Statement over the term of the borrowing using the effective interest 
rate method.
à Capital
  Financial instruments issued by the Group are treated as equity if the holders have only a residual interest in the assets of the Group after the deduction of all 
liabilities. The Group’s ordinary shares are classified as equity instruments. For the purposes of the disclosures given in note 20 the Group considers its capital 
to comprise its ordinary share capital, share premium and accumulated retained earnings.
k) f oreign currencies
Transactions in foreign currencies are translated into the functional currency, Sterling, at the rate ruling on the date of the transaction. Exchange differences arising 
from the movement in rates between the date of transaction and the date of settlement are taken to the Income Statement as they arise. 
Assets and liabilities (including goodwill allocated to overseas income generating units) of overseas subsidiaries are translated into Sterling at the rate ruling on the 
balance sheet date. The results of these subsidiaries are translated at an average rate of exchange for the year. 
Exchange gains or losses arising on the translation of the opening net assets of an overseas subsidiary, together with exchange differences arising on the use of 
the average rate of exchange, are taken directly to shareholders’ equity and recognised in the cumulative translation reserve. On disposal of a foreign subsidiary, 
the cumulative translation differences are recycled to the Income Statement and recognised as part of the gain or loss on disposal.
The main foreign currency exchange rates used in the financial statements to consolidate the overseas subsidiaries are as follows:
    Closing rate  Average rate
     30 June  30 June 30 June 30 June 
     2008 2007 2008 2007
US Dollar     1.99 2.01 2.00 1.93
Euro     1.26 1.48 1.37 1.48 GROUP NBT PLC ANNUAL REPORT 2008
22
Notes to the Consolidated Financial Statements continued
for the year ended 30 June 2008
1 accounting policies continued
general information continued 
l) l eases
Assets held under finance leases and hire purchase contracts are capitalised at their fair value on the inception of the leases and depreciated over the shorter of the 
period of the lease and the estimated useful economic life of the assets. The finance charges are allocated over the period of the lease in proportion to the capital 
amount outstanding and are charged to the Income Statement. Operating lease rentals are charged to the Income Statement in equal amounts over the lease term.
m) retirement benefit costs
The Company makes contributions to a defined contribution plan for Directors and employees. The amount charged to the Income Statement in respect of pension 
costs is the contributions payable in the year.
n) share‑based payments
The Group operates an equity‑settled, share‑based compensation plan. The fair value of the services received is determined by the fair value of the options granted 
which in turn is recognised as an employee expense with a corresponding increase in equity. The fair value of an option is measured at the grant date using the 
Black‑Scholes valuation model taking into account the terms and conditions of grant and the resulting fair value spread over the vesting period. Non‑market vesting 
conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative 
amount recognised over the vesting period is based on the number of options that eventually vest.
o) dividends 
Equity dividends are recognised when they become legally payable. Interim dividends are recognised when paid. Final dividends are recognised when approved 
by the Company’s shareholders at the Annual General Meeting.
p) segment reporting
A business segment is a group of assets and operations whose operating results are regularly reviewed by the Group’s Board, and for which discrete financial 
information is available. A geographical business segment is engaged in providing services within a particular economic environment that is subject to risks 
and returns that are different from those of segments operating in other economic environments.
The Group early adopted IFRS 8 Operating segments (effective on or after 1 January 2009). This standard replaces IAS 14 in respect of the disclosure 
of segmental information.
q) provisions
Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that the Group will be required to settle that obligation. 
Provisions are measured at the Directors’ best estimate of the expenditure required to settle the obligation at the balance sheet date and are discounted to present 
value where the effect is material.
r) research and development
An internally generated intangible asset arising from the Group’s development is recognised only if all the following conditions are met:
à an asset is created that can be identified;
à it is probable that the asset created will generate future economic benefits; and
à the development cost of the asset can be measured reliably.
Internally generated intangible assets are amortised on a straight‑line basis over their useful lives. The amortisation charge is within total net operating expenses 
on the face of the Income Statement.
Where no internally generated asset can be recognised, development expenditure is recognised as an expense in the period in which it is incurred.
s) holiday pay accrual
Employee benefit accruals are made in respect of holiday entitlements that have accrued to employees but have not been taken at the balance sheet date.
t) adoption of new and revised ifrss
The following new standards and interpretations, which have been issued by the IASB and IFRIC, are effective for future periods and have not been adopted early 
in these financial statements. The Directors do not anticipate that the adoption of these standards and interpretations will have a material accounting impact on the 
Group’s financial statements in the period of initial application.
Standard or interpretation Effective for periods beginning Endorsed for use in the EU
Amendment to IAS 23 Borrowing costs 1 January 2009 No
Amendments to IAS 1 Presentation of financial statements – revised presentation 1 January 2009 No
Revised IFRS 3 Business combinations 1 July 2009 No
Amendments to IAS 27 Consolidated and separate financial statements 1 July 2009 No
Amendments to IAS 32 Puttable instruments and obligations arising on liquidation 1 January 2009 No
Amendment to IFRS 2 Share‑based payment: vesting conditions and cancellations 1 January 2009 No
IFRIC 13 Customer loyalty programmes 1 July 2008 No
IFRIC 14 – IAS 19 – The limit on a defined benefit asset, minimum funding requirements and their interaction 1 January 2008 No
  GROUP NBT PLC ANNUAL REPORT 2008
23
2 critical accounting estimates and Judgments
In preparing the consolidated financial statements, management has to make judgments on how to apply the Group’s accounting policies and make estimates 
about the future. The critical judgments that have been made in arriving at the amounts recognised in the consolidated financial statements and the key sources 
of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities in the next financial year are 
discussed below:
acquisitions
When acquiring a business, the Directors have to make judgments and best estimates about the fair value allocation of the purchase price. We seek appropriate 
competent and professional advice before making any such allocations. 
impairment reviews
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated above. The recoverable amounts of 
cash‑generating units have been determined based on value‑in‑use calculations. These calculations require the use of estimates ( note 11). The use of this method 
requires the estimation of future cash flows and the choice of a discount rate in order to calculate the present value of the cash flows. Actual outcomes may vary.
income taxes
The Group is subject to income taxes in numerous jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes (note 8). 
There are transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities 
for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the 
amounts that were recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.
useful lives of intangi Ble assets and property, plant and equipment
Intangible assets are amortised and property, plant and equipment are depreciated over their useful lives. Useful lives are based on the management’s estimates 
of the period that the assets will generate revenue, which are periodically reviewed for continued appropriateness. Changes to estimates can result in significant 
variations in the carrying value and amounts charged to the Income Statement in specific periods. 
determination of fair values of intangiBle assets acquired in Business comBinations
Externally acquired intangible assets are initially recognised at cost and subsequently amortised on a straight‑line basis over their useful economic lives. The amortisation 
expense is included within administrative expenses in the Income Statement. Intangible assets are recognised on business combinations if they are separable from the 
acquired entity or give rise to other contractual/legal rights. The amounts ascribed to such intangibles are arrived at by using appropriate valuation techniques.
deferred tax on Business comBinations
The recognition of a deferred tax asset in respect of trading losses is based on the assessment of future profits around which there is always a degree of uncertainty.
deferred tax on share options
The deferred tax asset on share option charges is affected by the difference between the grant price of the share options and the market price of the Company’s 
shares at the accounting year end. If the market value of the shares at the date of exercise were to be lower than the market value at the accounting year end, 
the amount of tax relief obtained would be less than anticipated in the deferred tax calculations.
share‑Based payments
The Group has three equity‑settled share‑based remuneration schemes for employees. Employee services received, and the corresponding increase 
in equity, are measured by reference to the fair value of the equity instruments at the date of grant, excluding the impact of any non‑market vesting conditions. 
The fair value of share options is estimated by using the valuation model, Black‑Scholes, on the date of grant based on certain assumptions. Those assumptions are 
described in note 21 and include, among others, the dividend growth rate, expected volatility, expected life of the options and number of options expected to vest. 
More details including carrying values are disclosed in note 21. The charge recognised in future periods in respect of these schemes will vary if changes are made 
in respect of the estimates for the rate of lapse of the options. GROUP NBT PLC ANNUAL REPORT 2008
24
Notes to the Consolidated Financial Statements continued
for the year ended 30 June 2008
3 s egmental analysis
The Group has early adopted IFRS 8 Operating segments.
At present the Group’s activities are operated largely through a common infrastructure and support functions and therefore in the opinion of the Directors its 
activities constitute one business segment through which it provides its services, which are the provision of domain name, hosting, brand protection and other 
internet related services.
The Group reviews the operating performance of the business by revenue from each of its following services; domain name services – management of corporate 
domain name portfolios, managed hosting services – dedicated hosting solutions for SMEs, reseller services – white‑labelled domain name registration services for 
ISPs and other intermediaries, online services – domain name, email and shared hosting, and brand protection services – monitoring the internet for brand abuse, 
fraud, piracy and counterfeiting, and uses the following format to report results internally. 
        2008  2007 
       £’000  £’000 
Revenue by service         
  – corporate domain names       15,707 9,124
  – managed hosting       5,074 3,542
  – reseller       5,371 2,180
  – online       7,773 7,510
  – brand protection       1,356 — 
         35,281 22,356
Gross profit        27,355 17,453
Underlying operating profit*        5,890 3,983
  – share‑based payments       (177) (255)
  – net finance expense       (205) (32)
Underlying profit before tax**        5,508 3,696
  – restructuring costs       (515) (242)
  – amortisation       (782) (359)
Profit before taxation        4,211 3,095
 * Underlying operating profit is defined as operating profit excluding amortisation, restructuring costs and share‑based payments and is shown on the face of the Income Statement.
** Underlying profit before tax is defined as pre‑tax profit excluding amortisation and restructuring costs.
The assets and liabilities of the Group cannot be allocated to the above segments. For internal reporting purposes balance sheets are not split into segments.
The Group operates in three main geographic areas: UK, other European countries and the USA.
Revenue, profit/(loss) before tax and net assets/(liabilities) by origin of geographical segment are as follows:
  Turnover  Profit/(loss) before tax  Net assets/(liabilities)
    2008  2007  2008  2007  2008  2007 
   £’000  £’000  £’000  £’000  £’000  £’000 
UK   19,496  15,518  2,050  3,226  27,371  23,633 
Other European countries   14,559  5,950  1,844  (466) 1,345  (1,402)
USA   1,226  888  317  335  (1,046) (1,513)
    35,281  22,356  4,211  3,095  27,671  20,718 
Included within UK countries are the following amounts relating to Envisional Solutions Limited which was acquired during the year, revenue: £1,356,000, loss 
before tax: £481,000 and net liabilities: £1,028,000.
4 operating profit
Operating profit is stated after charging:
        2008  2007 
       £’000  £’000 
Staff costs       14,222  9,077
Research and development       423  417 
Depreciation of owned assets       1,489  942 
Other intangibles amortisation       782  359 
Operating lease rentals  – land and buildings       751  444 
 – other       78  — 
Auditors’ remuneration  – Group audit fee       135  80 
 – Company audit fee       33  33 
 – taxation services       38  33 
 – other services       73  — 
Foreign exchange gain        127  58 
Group restructuring – redundancy costs       66  140 
 – software integration       449  — 
 – travel costs       —  91 
 – legal and professional       —  11  GROUP NBT PLC ANNUAL REPORT 2008
25
4 operating profit continued
The Group restructuring costs have arisen as a direct result of acquisitions and integration of the Group’s IT infrastructure. In addition to the auditors’ remuneration 
shown above, fees amounting to £60,000 (2007: £238,000) were incurred and capitalised during the year for due diligence work carried out in connection with the 
acquisitions of Group NBT A/S and Envisional Solutions Limited.
5 information regarding employees
Staff costs (including Directors’ emoluments) incurred in the year were as follows:
        2008  2007 
       £’000  £’000 
Wages and salaries       12,748 8,133 
Social security costs       1,045 562 
Share‑based payments       177 255
Pension costs       252 127 
          14,222 9,077 
Average number of employees during the year:
        2008  2007 
       number  number 
Administrative       49 34
Operational       227 154
          276 188
        2008  2007 
       £’000  £’000 
Directors’ emoluments       701  646 
Pension costs       34  32 
            735  678 
Share‑based payments       177  255 
Emoluments of highest paid Director:     
Emoluments       241  233 
Directors’ emoluments are detailed, by Director, in the Directors’ Remuneration Report on page 11, and this information includes the payments made to the 
personal pension scheme of the Directors. 
6 f inance income
        2008  2007 
       £’000  £’000 
Bank interest           124 147
7 f inance expense
        2008  2007 
       £’000  £’000 
Bank loan interest payable       321 178 
Other interest payable       8  1 
            329  179 
8 t axation
a) a nalysis of tax expense
        2008  2007 
       £’000  £’000 
currenT T ax      
Current year tax       1,220  991 
Adjustment in respect of prior periods       20  (50)
Total current tax expense          1,240  941 
deferred T ax      
Origination and reversal of timing differences       (243) (36)
Adjustment in respect of prior period losses       (58) (172)
Total deferred tax credit          (301) (208)
Total tax expense (note 8B)           939  733  GROUP NBT PLC ANNUAL REPORT 2008
26
Notes to the Consolidated Financial Statements continued
for the year ended 30 June 2008
8 t axation continued
B) t ax expense reconciliation
        2008  2007 
       £’000  £’000 
Profit before taxation           4,211  3,095 
Profit before taxation multiplied by standard rate of corporation tax in the UK of 29.5% (2007: 30%)    1,242  929 
effec Ts of:        
Expenses not deductible for tax purposes       252  399 
Short term timing differences       117  81 
Depreciation in excess of capital allowances       (47) (20)
Utilisation of tax losses       (280) (190)
Unrelieved losses carried forward       — 37 
Statutory deductions on exercise of share options       — (23)
Difference in overseas tax rates       (64) — 
Adjustment to prior year tax charge       20  (50)
Deferred tax movements       (301) (430)
Total tax expense (note 8A)          939  733 
9 dividends
        2008  2007 
       £’000  £’000 
Final paid of 1.2 pence (2007: 0.8 pence) per share – relating to previous year’s results     302 163
Interim paid of 0.8 pence (2007: 0.6 pence) per share       201 147
Dividends paid in the year        503 310
The Board of Directors has proposed the payment of a final dividend of 1.6 pence per share (2007: 1.2 pence) which is payable on 7 January 2009 to shareholders 
on the register at 5 December 2008, subject to approval by shareholders at the Annual General Meeting on 27 November 2008.
10 earnings per share
The basic and diluted earnings per share for the year ended 30 June 2008 are based on the profit for the year attributable to ordinary shareholders, of £3,272,000 
(2007: £2,362,000) and on the weighted average number of shares of 25,128,000 (2007: 22,387,000).
An adjusted earnings per share has also been presented in addition to the basic earnings per share and is based on earnings adjusted to eliminate the effects 
of amortisation on intangible assets and restructuring costs. It has been calculated to allow shareholders to gain a clearer understanding of the trading performance 
of the Group. The basis of the calculation of the basic and diluted profit per share, before amortisation and restructuring costs, is set out below:
        2008  2007 
       £’000  £’000 
Profit attributable to ordinary shareholders       3,272  2,362 
Amortisation of other intangible assets (net of tax)       578  264 
Restructuring costs (after tax relief)       360  224 
Profit attributable to ordinary shareholders before amortisation and restructuring costs     4,210  2,850 
Weighted average and adjusted weighted average number of ordinary shares (000’s):
        number  Number
Weighted average and adjusted weighted average number of ordinary shares  
Shares used for basic earnings per share       25,128  22,387 
Dilutive share options       756  804 
Shares used for diluted earnings per share         25,884  23,191 
     Basic   Diluted
      2008 2007  2008 2007 
      pence  pence  pence  pence
Earnings per share     13.02 10.55 12.64 10.18
Amortisation of intangible assets (net of tax)     2.30 1.18 2.23 1.14
Group restructuring costs (after tax relief)     1.43 1.00 1.39 0.97
Adjusted earnings per share     16.75 12.73 16.26 12.29
  GROUP NBT PLC ANNUAL REPORT 2008
27
11 g oodwill and intangi Ble assets
     Domain  Other  
    Goodwill  names Technology intangibles Total 
    £’000  £’000  £’000  £’000  £’000 
c osT        
At 1 July 2007    21,461  31  447  2,865  24,804
Additions    2,982  —  641  136 3,759
Foreign exchange movements    2,987  — 61  330 3,378
aT 30 June 2008     27,430  31  1,149  3,331  31,941
amor Tisa Tion        
At 1 July 2007    —  1  41  317  359
Provided in year    —  2  181  599 782
aT 30 June 2008     —  3  222  916  1,141
neT book value        
aT 30 June 2008     27,430  28  927  2,415  30,800 
Cost        
At 1 July 2006    3,719  —  — — 3,719
Additions    17,742  31  447  2,865 21,085
At 30 June 2007     21,461  31  447  2,865  24,804
Amortisation        
At 1 July 2006    —  —  —  —  —
Provided in year    —  1  41  317 359
At 30 June 2007     —  1  41  317  359
Net book value        
At 30 June 2007     21,461  30  406  2,548  24,445 
Other intangibles include customer lists and non‑compete agreements.
goodwill impairment tests
During the year, goodwill was reviewed for impairment in accordance with the Group’s accounting policy. Goodwill was allocated to individual cash generating 
units based on the Group’s operations and the carrying value of each unit is set out below: 
       2008 2007 
       £’000  £’000 
UK       9,094  6,135 
Other European countries       18,336  15,326 
            27,430 21,461
The recoverable amounts of the cash generating units were determined from value‑in‑use calculations. These calculations were based on cash flow projections 
based on approved budgets and forecasts, based on past performance and management’s expectations of future performance of the relevant cash generating 
units which cover a five year period. Other key assumptions used in these calculations were the discount rate applied to future cash flows, 10.97% and future 
perpetuity rates ranging from 1% to 5%. As a result of these tests, no impairment provisions are considered necessary. GROUP NBT PLC ANNUAL REPORT 2008
28
Notes to the Consolidated Financial Statements continued
for the year ended 30 June 2008
12 property, plant and equipment
      Fixtures,    
     Computer  fittings and  Leasehold  
     equipment  equipment  improvements Total  
     £’000  £’000  £’000  £’000 
c osT      
At 1 July 2007     4,643  2,321  288  7,252 
Acquisition of subsidiaries     —  101  15  116 
Additions     1,728  374  88  2,190 
Disposals     (35) (927) (30) (992)
aT 30 June 2008       6,336  1,869  361  8,566 
      
dePrecia Tion      
At 1 July 2007     3,899  1,344  100  5,343 
Acquisition of subsidiaries     —  43  15  58 
Disposals     (35) (920) (30) (985)
Provided in year     1,091 333  65  1,489 
aT 30 June 2008       4,955 800  150  5,905 
        
neT book value      
aT 30 June 2008       1,381  1,069  211  2,661 
Cost      
At 1 July 2006     3,271  388  108  3,767 
Acquisition of subsidiaries     1,127  868  120  2,115 
Additions     257  1,089  60  1,406 
Disposals     (12) (24) —  (36)
At 30 June 2007       4,643  2,321  288  7,252 
      
Depreciation      
At 1 July 2006     2,592  304  53  2,949 
Acquisition of subsidiaries     1,009  477  —  1,486 
Disposals     (12) (22) —  (34)
Provided in year     310  585  47  942 
At 30 June 2007       3,899  1,344  100  5,343 
      
Net book value      
At 30 June 2007       744  977  188  1,909 
13 investments
All subsidiaries have been included in the consolidation. Details of the subsidiary companies at 30 June 2008 are as follows:
       Country of Proportion 
       incorporation of voting 
       and operation equity held
NetBenefit (UK) Limited       UK 100%
NetNames Limited*       UK 100%
NetNames International Limited       UK 100%
Easily Limited       UK 100%
NetBenefit Limited (dormant)       UK 100%
NetNames Inc*       USA 100%
Eurl Group NBT France        France 100%
Exalia Limited       UK 100%
Group NBT A/S        Denmark 100%
Ascio Technologies Inc*       USA 100%
Ascio Technologies GmbH*       Germany 100%
Speednames AB*       Sweden 100%
Speednames GmbH*       Germany 100%
Speednames AS*       Norway 100%
Speednames GmbH*       Switzerland 100%
Speednames Technology Holding ApS*       Denmark 100%
Speednames A/S*       Denmark 100%
Domain Trustees GmbH* (dormant)       Germany 100%
Speednames Hong Kong Ltd* (dormant)       Hong Kong 100%
Envisional Solutions Limited       UK 100%
Envisional Limited*       UK 100%
Envisional Technology Limited*       UK 100%
Envisional Inc (dormant)*       USA 100%
* These investments are not held directly by the ultimate holding company.
All of the above companies are involved in the provision of domain name, hosting, brand protection or other internet‑related services except for those denoted as dormant. GROUP NBT PLC ANNUAL REPORT 2008
29
14 t rade and other receiva Bles
        2008  2007 
       £’000  £’000 
Trade receivables       3,006 3,167
Other receivables       489 473
Prepayments and accrued income       1,500 969
          4,995 4,609
15 d eferred tax
Deferred tax has been calculated at 28% (2007: 30%) in respect of UK companies and at the appropriate rate for foreign companies.
The Group only recognises deferred tax assets to the extent that future taxable profits will be available to allow all or part of the asset to be recovered.
The movement in the deferred tax account is shown below:
        2008  2007 
       £’000  £’000 
asseT s     
At 1 July 2007       1,175  538 
Prior period adjustment       58  — 
Arising in respect of intangible assets recognised on acquisitions       (218) (853)
Originating with acquisitions       —  900 
Foreign exchange movements       (97) — 
Origination and reversal of timing differences       132  590 
aT 30 June 2008           1,050  1,175 
Excess depreciation over capital allowances       207  113 
Short term timing differences       334  50 
Intangibles       (862) (758)
Tax deductible goodwill       580  579 
Unrelieved trading losses       374  514 
Share option relief       417  677 
aT 30 June 2008          1,050  1,175 
liabiliTies      
At 1 July 2007       (19) — 
Origination and reversal of timing differences       19  (19)
aT 30 June 2008           —  (19)
Accelerated capital allowances       —  (19)
aT 30 June 2008           —  (19)
Deferred tax assets and liabilities have been netted off as the Directors believe the unwinding of the deferred tax liability to be at the same time as the deferred tax assets.
The Group had potential deferred tax assets that were not recognised at 30 June 2008 as the timing of the relief could not be assessed with sufficient certainty 
and a proportion of the tax losses have yet to be agreed with the appropriate revenue authority. The unrecognised amounts shown below are the gross temporary 
differences, not their value in tax terms.
        2008  2007 
       £’000  £’000 
Excess depreciation over capital allowances       2,045 (112)
Short term timing differences       249  255 
Unrelieved trading losses       13,211  9,834 
          15,505  9,977
16 t rade and other paya Bles
        2008  2007 
       £’000  £’000 
Trade payables       1,875 772
Other taxation and social security taxes       1,130 869
Other payables       2,544 2,194
Accruals and deferred income       5,741 5,196
          11,290 9,031
17 l oans and Borrowings
        2008  2007 
       £’000  £’000 
currenT : Secured bank loan       983 983
non‑currenT : Secured bank loan       2,957 3,940
            3,940  4,923  GROUP NBT PLC ANNUAL REPORT 2008
30
Notes to the Consolidated Financial Statements continued
for the year ended 30 June 2008
17 l oans and Borrowings continued
Bank loan
On 16 January 2007, a five year term bank loan of £5,000,000 was arranged and drawn down in connection with the acquisition of Group NBT A/S. The loan bears 
interest based on LIBOR which for the year was at an average rate of 5.85%; and is secured by a fixed and floating charge over the Group’s assets and will be repaid 
by equal amounts over the loan term. The maturity of the bank loan is shown in note 19 iii.
In the above table, loans are stated net of unamortised issue costs of £60,208 (2007: £77,208). The Group has charged to the Income Statement issue costs of £17,000 
(2007: £7,792) in respect of these facilities. These costs are allocated to the Income Statement over the term of the facility at a constant rate on the carrying amount.
credit facility
In addition to the loan, an additional credit facility of £2,000,000 was arranged, none of which has been drawn down, and this facility will expire on 16 January 2009 
and is annually renewable. The interest rate applicable to this facility is based on LIBOR plus a margin of 1%.
18 provision 
The provision relates to a deferred contingent consideration arising in connection with the acquisition of Envisional Solutions Limited on 10 July 2007 (see note 25).
        2008  2007 
       £’000  £’000 
Balance at 1 July       — —
Movement       643 —
balance a T 30 June         643 —
Of the above amount which is based on achieving revenue targets, £155,000 has been earned and is due for payment during the first quarter of 2009. The balance 
of £488,000 is currently estimated to be payable by 2010. Further details of the consideration are included in note 25.
19 financial instruments
This note describes the Group’s objectives, policies and processes for managing those risks and the methods used to measure them. 
There have been no substantive changes in the Group’s exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the 
methods used to measure them from previous periods unless otherwise stated in this note.
The Group’s financial instruments at 30 June 2008 comprised: trade and other receivables, cash and cash equivalents, loans and borrowings, trade and other payables.
f air value of financial instruments
All the Group’s financial instruments are carried at amortised cost.
The Group believes that there is no material difference between the book and fair value of its financial instruments, in the current or prior year, due to the instruments 
bearing interest at floating rates or being of short term nature.
general oBJectives, policies and procedures
The Board has overall responsibility for the determination of the Group’s risk management objectives and policies and, whilst retaining ultimate responsibility 
for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies, to the 
Executive Directors.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible, without unduly affecting the Group’s competitiveness and flexibility.
i) credit risk
Credit risk refers to the possibility that a financial loss will occur as a result of a customers’ inability to meet its financial obligations.
Credit risk arises principally from the Group’s trade and other receivables. Potential customers are subjected to credit verification procedures before credit terms 
are granted. The quality of existing debt which has not been provided for is considered to be collectable and procedures are in place to monitor trade receivables 
on an ongoing basis to minimise exposure to bad debts. Trade receivables are only written off once all methods of collection have been exhausted. 
The maximum exposure to credit risk is the trade receivable balance at the year end. The Group has no significant exposure to large or key customers.
Loans and receivables are summarised as follows:
    Trade receivables  Cash and cash equivalents
      2008  2007  2008  2007 
     £’000  £’000  £’000  £’000 
Up to 30 days     1,893  1,345  4,657  3,051 
Past due but not impaired:     
30 to 90 days     1,171  1,005  —  — 
More than 90 days     1,158  1,798 —  — 
Gross     4,222  4,148 4,657  3,051 
Less: allowance for impairment     (1,216) (981) —  — 
Net     3,006  3,167 4,657  3,051 
Impairment loss allowance movement:
        2008  2007 
       £’000  £’000 
Opening balance       981  892 
Increase in provisions       235  89 
Closing balance       1,216  981  GROUP NBT PLC ANNUAL REPORT 2008
31
19 financial instruments continued
general oBJectives, policies and procedures continued
ii) market risk
Market risk refers to fluctuations in interest rates and exchange rates.
a) interest rate risk
The Group analyses the interest rate exposure on a quarterly basis and analyses the sensitivity of the net result for the year to a reasonable possible change 
in interest rates of +1% and –1%. The impact on the income and net assets of a 1% change would be £19,000 (2007: £27,000). The gain or loss potential 
is then compared to the limits determined by management.
b) currency risk
The Group has overseas subsidiaries, which operate in Continental Europe and the USA. Their activities and net assets are denominated in the functional 
currencies of the operating units. The Group’s principal exposure to exchange rate fluctuations arises on translation of the overseas net assets and results 
into Sterling for accounting purposes. In addition the Group as a whole is exposed to transactions which give rise to foreign exchange risk. The Group reviews 
its exposure on an on‑going basis and to date the Group had not entered into any hedging or other derivative financial instruments relating to foreign currencies. 
The foreign currency monetary assets and liabilities are as follows: 
       Other  
       European  
    Sterling  US Dollar Euro currencies Total 
    £’000  £’000  £’000  £’000  £’000 
a T 30 June 2008        
Trade and other receivables    2,529  623  1,169  674  4,995 
Cash and cash equivalents    3,618  84  743  213  4,658 
Trade and other payables    (6,436) (501) (1,192) (3,161) (11,290)
Bank loans    (3,940) —  —  —  (3,940)
Provision    (643) —  —  —  (643)
    (4,872) 206 720 (2,274) (6,220)
At 30 June 2007        
Trade and other receivables    2,593  534  811  671  4,609 
Cash and cash equivalents    2,479 78  323  171  3,051 
Trade and other payables    (5,145) (350) (860) (2,676) (9,031)
Bank loans    (4,923) —  —  —  (4,923)
    (4,996) 262 274 (1,834) (6,294)
The Group’s currency exposures comprise only those exposures that give rise to net currency gains and losses to be recognised in the Income Statement. 
Such exposures reflect the monetary assets and liabilities of the Group that are not denominated in the operating (or functional) currency of the operating 
unit involved. At 30 June 2008 and 30 June 2007, these exposures are immaterial to the Group.
Assets and liabilities of Group entities located in the United States and Europe are denominated in their respective currencies and are therefore exposed to currency 
risk giving rise to gains or losses on translation into Sterling, which are recognised directly in equity through the translation reserve. If exchange rates had moved 
by +10% or ‑10% over and above the rates at the year end, the change in monetary assets and liabilities would be £135,000 (2007: £130,000).
iii) liquidity risk
Liquidity risk is the risk that the Group is unable to meet its payment obligations associated with its financial liabilities when they fall due, and to replace funds 
when they are withdrawn.
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably, 
by the use of medium term and long term facilities. At the balance sheet date all borrowing facilities were held with HBOS plc. The Group believes that there 
is no likelihood on there being an immediate call on its liabilities. 
The table below analyses the Group’s financial liabilities by remaining contractual maturities, at the balance sheet date, and financial assets which mitigate liquidity 
risk. The amounts disclosed in the table are the contractual undiscounted cash flows.
    Up to 3 3 to 12 1 to 5 More than  
    months months years 5 years Total 
    £’000 £’000  £’000 £’000  £’000 
aT 30 June 2008        
Trade and other receivables    3,355  1,640  —  —  4,995 
Cash and cash equivalents    4,658  —  —  —  4,658 
Trade and other payables    (8,416) (23) (85) (120) (8,644)
Bank loans    (492) (491) (2,957) —  (3,940)
Provision    —  (155) (488) —  (643)
    (895) 971 (3,530) (120) (3,574)
At 30 June 2007        
Trade and other receivables    2,606  2,003  —  —  4,609 
Cash and cash equivalents    2,912  (27) 80  86  3,051 
Trade and other payables    (6,302) (23) (60) (120) (6,505)
Bank loans    —  (983) (3,940) —  (4,923)
    (784) 970  (3,920) (34) (3,768) GROUP NBT PLC ANNUAL REPORT 2008
32
Notes to the Consolidated Financial Statements continued
for the year ended 30 June 2008
19 financial instruments continued
general oBJectives, policies and procedures continued
iv) capital
As described in note 1J, the Group considers capital to comprise its ordinary share capital, share premium and accumulated retained earnings. In managing its 
capital, the Group’s primary objective is to ensure its continued ability to provide a consistent return for its equity shareholders through a combination of capital 
growth and distributions. The Group considers the appropriate type of funding according to its requirements.
20 c alled up share capital
      2008  2007  2008  2007 
      number  Number £’000  £’000 
auThorised ordinar Y shares of 1 Pence each    
At 1 July 2007     30,000,000 30,000,000 300  300 
Authorised during the year     10,000,000  —  100  — 
aT 30 June 2008       40,000,000 30,000,000 400  300 
allo TTed, called uP and full Y Paid ordinar Y shares of 1 Pence each   
At 1 July 2007     24,745,397 20,394,897 248  204 
Share options exercised     — 64,786 —  1 
Shares issued on acquisition     398,963 4,285,714  3  43 
aT 30 June 2008       25,144,360 24,745,397 251  248 
During the year, no shares (2007: 64,786) were issued for exercising share options and 398,963 shares (2007: 4,285,714) were issued in connection with the acquisition 
of subsidiary undertakings.
reserves
The following describes the nature and purpose of each reserve within capital and reserves:
Reserve  Description and purpose
Share capital Amount subscribed for share capital at nominal value
Share premium  Amount subscribed for share capital in excess of nominal value
Merger reserve   The premium on shares issues where the Company has taken advantage of the merger relief provisions under Section 131  
of the Companies Act 1985 on the acquisition of subsidiaries
Other reserve   Amounts arising from share‑based payments charge on employee share options, and in respect of options issued  
in connection with acquisitions
Currency translation  Gains/losses arising on retranslating the net assets of overseas operations into Sterling
Retained profit  Cumulative net gains and losses recognised in the consolidated Income Statement
21 share‑Based payments
The Group has a number of employee schemes as shown below. As at the date of transition to IFRS all options granted after 7 November 2002 had vested 
and therefore were not required to be accounted for in accordance with IFRS2 – Share‑based payments.
The Group operates an Enterprise Management Incentive Plan (EMI), an Inland Revenue Approved Scheme and an Unapproved Scheme.
The Enterprise Management Incentive Plan is an HM Revenue and Customs approved discretionary director and employee share option scheme. Grants under this 
plan vest in periods ranging from one to three years. There are no performance conditions attached to the grant of options save for the vesting periods although 
some options granted in 2003 were conditional upon the Group recording a profit in either years ending 30 June 2004 or 30 June 2005.
The Unapproved Scheme exists for grants to Directors and key management where the value of the options granted is in excess of the EMI scheme limits or where 
options cannot be granted under the EMI scheme. There are no performance conditions attached to the grant of options save for the vesting periods. 
The Group also has options outstanding under an HM Revenue and Customs Approved Scheme. No grants have been made under this scheme since September 2000.
The details of outstanding share options over ordinary shares of the Parent company are set out below. All option agreements are for a ten‑year period. 
All of the options listed below had vested and were exercisable by 30 June 2008.
enterprise management incentive plan
   At     at  at  
  Exercise 1 July    30 June 30 June 
  price 2007    2008 2008 
Date granted  £ outstanding Granted Exercised Lapsed outstanding exercisable
30 June 2003   0.25   630,000  — — —  630,000   630,000 
22 August 2003   0.01   11,500  — — —  11,500   11,500 
07 April 2003   0.01   6,500  — — —  6,500   6,500 
10 April 2006   1.30   38,610  — — —  38,610   38,610 
26 March 2007   3.14   62,000  — — —  62,000   62,000 
      748,610  — — —  748,610   748,610 
Weighted average exercise price (£)     
2008:    0.54  — — —  0.54  0.54
2007:     0.30   3.14   0.25  —  0.54  0.54
The weighted average share price at the date of exercise for the options exercised was nil (2007: £1.44). The total charge for the year relating to the scheme 
was nil (2007: £56,000). GROUP NBT PLC ANNUAL REPORT 2008
33
21 share‑Based payments continued
unapproved scheme
   At     at  at  
  Exercise 1 July    30 June 30 June 
  price 2007    2008 2008 
Date granted  £ outstanding Granted Exercised Lapsed outstanding exercisable
08 September 1998   0.25   24,000  — — —  24,000   24,000 
04 June 1999   2.50   25,000  — — —  25,000   25,000 
30 June 2003   0.25   105,000  — — —  105,000   105,000 
10 April 2006   1.30   100,000  — — —  100,000   100,000 
26 March 2007   3.14   218,000  — — —  218,000   218,000 
18 July 2007   3.03  —  200,000  — —  200,000   200,000 
      472,000   200,000  — —  672,000   672,000 
Weighted average exercise price (£)     
2008:    1.92   3.03  — —  2.25  2.25
2007:     1.15   3.14  —  2.50   1.92  1.92
The weighted average share price at the date of exercise for the options exercised was nil (2007: nil). The total charge for the year relating to the scheme was 
£177,000 (2007: £198,000).
approved scheme
   At     at  at  
  Exercise 1 July    30 June 30 June 
  price 2007    2008 2008 
Date granted  £ outstanding Granted Exercised Lapsed outstanding exercisable
18 September 2000   4.55   2,708  — — —  2,708   2,708 
Weighted average exercise price (£)     
2008:    4.55  — — —  4.55  4.55
2007:     2.83  —  2.34   2.34   4.55  4.55
The weighted average share price at the date of exercise for the options exercised was nil (2007: £3.38). The total charge for the year relating to the scheme 
was nil (2007: nil).
The fair value of the options granted during the current and prior year was calculated using the Black‑Scholes model as follows: 
      Options issued in year
        2008  2007
Share price (£)       £3.03 £3.14
Expected life (years)       3.00 3.25
Strike price (£)       £3.03 £3.14
Volatility       34.5% 35.6%
Dividend yield       1.0% 1.0%
Risk free interest rate       5.2% 5.0%
Fair value of each option at measurement date       £0.83 £0.91
The volatility assumption is based upon a statistical analysis of daily share prices over a period of between two and three years. The expected life of options is based 
on historical data and is not necessarily indicative of exercise patterns that may occur.
Directors’ share options are set out in the Directors’ Remuneration Report and total 1,237,610 (2007: 1,087,610).
o ther share‑Based payments
The Group committed to grant 1,000,000 options at an exercise price of £2.75 per share, vesting immediately and exercisable over a five year term, on 16 January 2007 
as part of the consideration in connection with the acquisition of Group NBT A/S. The total fair value of these options, £423,000 was calculated using the Black‑Scholes 
model and was included as part of the cost of investment. At 30 June 2008 970,000 (2007: 810,000) options had been issued.
22 operating lease commitments
At 30 June 2008 the Group had the following operating leases commitments:
       2008 2007 
       £’000  £’000 
land and buildinGs    
In one year or less       102 14
Between one and five years       365 570
In five years or more       289 18
          756 602
oTher    
In one year or less       3 5
Between one and five years       31 29
In five years or more       — —
          34 34 GROUP NBT PLC ANNUAL REPORT 2008
34
Notes to the Consolidated Financial Statements continued
for the year ended 30 June 2008
23 c ontingent liaBilities
At 30 June 2008, the Group had contingent liabilities in respect of the following:
à standby letters of credit and credit guarantees to domain name registries of £57,000 (2007: £38,000);
à amounts held in lieu of rent deposits for premises of £165,000 (2007: £145,000); and
à bank guarantee covering deductions of tax for employees in Norway of £25,000 (2007: £21,000).
24 c ash and cash equivalents
      Cash Cash on  
      available treasury Total 
       on demand deposit £’000 
At 1 July 2007      940 2,111 3,051
Cash flow      2,512 (905) 1,607 
aT 30 June 2008         3,452 1,206 4,658
Cash on treasury deposit is held for periods up to seven days.
25 acquisition during the period
envisional solutions limited
On 10 July 2007 the Group acquired Envisional Solutions Limited (Envisional) for a maximum consideration of £4.25 million including acquisition expenses. Its principal 
activity is the provision of online monitoring of anti‑piracy, anti‑fraud, brand abuse and providing intelligence solutions through licensing or as a managed service.
The consideration comprised an initial payment of £1.26 million in shares and further contingent payments for a maximum consideration of £2.8 million in cash 
payable as follows; £1.01 million paid in February 2008 based on the revenue target for the year ended 31 December 2007, and a maximum of £1.79 million 
relating to revenue targets for the years ending 31 December 2008 and 31 December 2009.
The details of the fair value of the assets and liabilities at acquisition are set out below:
     Book  
     value of Intangible Accounting  
     assets assets policy  
     acquired acquired alignment Fair value 
     £’000 £’000 £’000 £’000
Intangible fixed assets     —  777 —  777
Tangible fixed assets     58 —  —  58
Current assets     332 —  —  332
Cash at bank     34 —  —  34
Current liabilities     (749) —  (91) (840)
Deferred tax       —  (218) —  (218)
     (325) 559 (91) 143
Goodwill        2,960
c onsidera Tion             3,103
Satisfied by:      
398,963 Ordinary shares at 316 pence each        1,261
Cash consideration (including expenses of £191,000)        1,199
Deferred contingent consideration        643
              3,103
Effects on Group cash flow:     
Cash consideration and costs        1,199
Cash balances on acquisition        (34)
neT cash ouTflow             1,165
The intangible assets acquired relate to the recognition of intangible assets and the deferred tax thereon.
The accounting policy alignment arises from a change in the revenue recognition policy on one of the contracts which has now been brought into line with the 
Group’s accounting policy. 
The goodwill arising on acquisition recognises the strategic industry knowledge of the staff and the benefit to the Group in its ability to cross‑sell its services 
alongside the Group’s product portfolio. GROUP NBT PLC ANNUAL REPORT 2008
35
25 acquisition during the period continued
envisional solutions limited continued
Envisional’s results are set out below:
      Audited (restated)
      10 July 
      2007 to  1 January Year ended  
      30 June to 9 July 31 December  
      2008 2007 2006 
      £’000 £’000 £’000
Revenue         1,356 720 1,237
Gross profit         1,306 681 1,178
Other operating expenses      (1,727) (1,018) (2,729)
Restructuring costs         (66) —  — 
Operating loss      (487) (337) (1,551)
Finance income/(expense)      6 (7) (9)
Loss before tax         (481) (344) (1,560)
As Envisional had been acquired soon after the financial year commenced, the Directors believe that the revenues and loss before tax for a full year would not have 
been materially different to that reported above. The post‑acquisition results shown above exclude intra‑group recharges. 
26 acquisitions in prior period
a) exalia limited (exalia)
On 25 August 2006 the Group acquired Exalia for £2,994,000 including acquisition expenses. The consideration, excluding expenses, was settled in three tranches; 
an initial payment of £2,000,000 on completion, a payment of £600,000 in March 2007 on achieving revenue targets for year ended 31 January 2007 and a final 
payment of £300,000 in June 2007.The final tranche, which was originally due to be paid in early 2008 subject to achieving the revenue target for the year ended 
31 January 2008, was paid early as an agreement was reached with the vendors to settle the earnout earlier than as set out in the acquisition agreement in order 
to facilitate the full integration of Exalia with the Group’s managed hosting division. The goodwill arising on acquisition is £2,416,000 which is annually reviewed 
for impairment.
Details of the fair values of the assets and liabilities acquired are set out below:
     Book  
     value of Intangible 
     assets  assets Fair value  
     acquired acquired adjustments Fair value 
     £’000 £’000 £’000 £’000
Intangible fixed assets     —  482 —  482
Tangible fixed assets     266 —  —  266
Current assets     143 —  (14) 129
Cash at bank     105 —  —  105
Current liabilities     (200) —  (69) (269)
Deferred tax       —  (135) —  (135)
     314 347 (83) 578
Goodwill        2,416
Consideration             2,994
       
Satisfied by:      
Cash consideration (including expenses of £94,000)        2,994
               2,994
       
Effects on Group cash flow:     
Cash consideration and costs        2,994
Cash balances on acquisition        (105)
Net cash outflow             2,889
The fair value adjustments relate to the reassessment of current and deferred tax provisions and the provision for bad debts.
The results of Exalia prior to its acquisition were as follows:
       1 February to Year ended 
       25 August January  
       2006 2006 
       £’000 £’000
Revenue           597 530
Operating profit       196 70
Net interest           (1) (3)
Profit on ordinary activities before taxation       195 67
Taxation           (66) (20)
Profit on ordinary activities after taxation         129 47 GROUP NBT PLC ANNUAL REPORT 2008
36
Notes to the Consolidated Financial Statements continued
for the year ended 30 June 2008
26 acquisitions in prior period continued
B) group nBt a/s (formerly named ascio technologies holding a/s)
On 16 January 2007 the Group acquired Group NBT A/S for an aggregate total consideration, comprising cash, Group NBT plc shares and share options over 
Group NBT plc shares and acquisition expenses, totalling £15,827,000. The aggregate consideration is stated after adjustments to the gross consideration for bank 
debt and working capital deficit at completion. The goodwill arising on acquisition is £15,349,000 which is annually reviewed for impairment.
Details of the fair value of the assets acquired are set out below:
      Fair value 
   Book value Intangible Accounting adjustments Current year  
   of assets assets  policy as originally  fair value  Revised  
   acquired acquired alignment assessed adjustment fair value 
   £’000 £’000 £’000 £’000 £’000 £’000
Intangible fixed assets   6,459 2,831 —  (6,459) — 2,831
Tangible fixed assets   478 —  105 (226) — 357
Current assets   1,034 —  —  356 — 1,390
Cash at bank   380 —  —  —  — 380
Current liabilities   (4,422) —  (120) (130) — (4,672)
Deferred tax   —  (708) —  —  900 192
   3,929 2,123 (15) (6,459) 900 478
Goodwill        15,349
Consideration              15,827
Satisfied by:       
4,285,715 ordinary shares at 227.5 pence each        9,750
1,000,000 share options at a fair value of 42.3 pence        423
Cash consideration (including expenses of £407,000)        5,654
               15,827
Effects on Group cash flow:      
Cash consideration and costs        5,654
Cash balances on acquisition        (380)
Net cash outflow              5,274
The accounting policy realignment arises from changes in accounting policy in respect of a provision for dilapidations in respect of Group NBT A/S head office 
premises where the lease provides for the tenant to return the premises in its original state. This treatment is in line with the Group’s accounting policy and the 
appropriate accounting standard. The fair value adjustments are in respect of the intangible assets which includes the removal of purchased goodwill on 
consolidation and presentation adjustments to restate the Group NBT A/S accounts on the same basis as the Group. 
The net assets of Group NBT A/S at acquisition were revised within the permitted period to include a deferred tax asset of £900,000 in respect of tax losses 
and other timing differences estimated to be recoverable and a corresponding adjustment was made to reduce the goodwill arising on acquisition. 
The results of Group NBT A/S prior to its acquisition were as follows:
       1 January  
       2006 to Year ended 
       15 January  31 December  
       2007 2005 
       £’000 £’000
Revenue           12,826 10,507
Operating loss after goodwill amortisation of £1,250,000 (2005: £1,200,000)      (1,458) (3,905)
Net interest           (344) 17
Loss on ordinary activities before taxation       (1,802) (3,888)
Taxation           —  — 
Loss on ordinary activities after taxation         (1,802) (3,888)
27 related parties
All transactions with subsidiary undertakings have been eliminated on consolidation. There are no transactions with external related parties. Key management 
personnel remuneration is disclosed in note 5. GROUP NBT PLC ANNUAL REPORT 2008
37
28 first time adoption of ifrs
As required by IFRS 1, the impact of the transition from UK GAAP to IFRS is explained below.
The accounting policies set out above have been applied consistently to all periods presented in these financial statements and in preparing an opening IFRS 
balance sheet at 1 July 2006 for the purposes of the transition to IFRS. 
IAS 1 – Presentation of financial statements. The form and presentation of the UK GAAP financial statements has been changed to be in compliance with IAS 1.
IAS 7 – Cash flow statements. The IFRS cash flow statement, prepared under IAS 7, presents cash flows in three categories; cash flows from operating activities, 
cash flows from investing activities and cash flows from financing activities. Other than the reclassification of cash flow into the new disclosure categories, there 
are no significant differences between the Group’s cash flow statement under UK GAAP and IFRS. Consequently, no cash flow reconciliations are provided.
The Group has elected to apply the following optional exemptions as permitted under IFRS 1 First time adoption of international financial reporting standards 
in preparing the Group’s balance sheet on transition to IFRS at 1 July 2006:
à  Business combinations – the Group has elected not to apply IFRS 3 Business combinations retrospectively to business combinations that occurred before the 
date of transition to IFRS. In relation to the treatment of brought forward goodwill amortisation, the Group has elected to treat the net book value of goodwill 
as measured under UK GAAP as at 30 June 2006 as the deemed cost of goodwill under IFRS 3 as at 1 July 2006.
à  Cumulative exchange translation differences – the Group has elected that the cumulative translation differences for all foreign operations are deemed to be nil 
at the date of transition to IFRS and exchange differences arising prior to that date will not be recycled to the Income Statement. 
à  Share‑based payments – the Group has elected to apply IFRS 2 to equity instruments granted after 7 November 2002 that had not vested by 1 July 2006.
Presented below, in accordance with IFRS 1, are the reconciliations of the consolidated Income Statement the financial year ended 30 June 2007 as well as the 
reconciliations of the consolidated balance sheet as at 30 June 2007 and 1 July 2006. GROUP NBT PLC ANNUAL REPORT 2008
38
Notes to the Consolidated Financial Statements continued
for the year ended 30 June 2008
28 first time adoption of ifrs continued
c onsolidated income statement
reconciliation of profit from uk gaap to ifrs for the year ended 30 June 2007
       Effect of   
       transition to  
      UK GAAP IFRS IFRS 
     Note £’000 £’000 £’000
revenue      22,356 —  22,356
Cost of sales      4,903 —  4,903
Gross ProfiT      17,453 —  17,453
Operating expenses     28 a) 15,062 (736) 14,326
Operating profit      2,391 736 3,127
Operating profit      2,391 736 3,127
Share‑based payments      255 —  255
Amortisation of other intangible assets      1,178 (819) 359
Restructuring costs      242 —  242
underl YinG oPera TinG ProfiT      4,066 (83) 3,983
Finance income      147 —  147
Finance expense      (179) —  (179)
ProfiT before T ax      2,359 736 3,095
Taxation     28 b) (853) 120 (733)
ProfiT afTer T ax      1,506 856 2,362 GROUP NBT PLC ANNUAL REPORT 2008
39
28 first time adoption of ifrs continued
c onsolidated Balance sheet
reconciliation of equity from uk gaap to ifrs
   UK GAAP Effect of  IFRS UK GAAP Effect of  IFRS 
   30 June transition to 30 June 1 July transition to 1 July 
   2007 IFRS 2007 2006 IFRS 2006 
  Note £’000 £’000 £’000 £’000 £’000 £’000
asseT s 
non‑currenT asseT s        
Goodwill  28 c) 23,643 (2,182) 21,461 3,708 —  3,708
Other Intangible assets  28 d) 30 2,954 2,984 —  —  — 
Property, plant and equipment   1,909 —  1,909 818 —  818
Deferred tax asset  28 e) 310 865 1,175 222 316 538
   25,892 1,637 27,529 4,748 316 5,064
currenT asseT s         
Trade and other receivables   4,609 —  4,609 1,895 —  1,895
Cash and cash equivalents   3,051 —  3,051 6,088 —  6,088
   7,660 —  7,660 7,983 —  7,983
To Tal asseT s   33,552 1,637 35,189 12,731 316 13,047
liabiliTies        
non‑currenT liabiliTies        
Loans and borrowings   (3,940) —  (3,940) —  —  — 
Deferred tax   (19) —  (19) —  —  — 
   (3,959) —  (3,959) —  —  — 
currenT liabiliTies        
Loans and borrowings   (983) —  (983) —  —  — 
Trade and other payables  28 f) (8,878) (153) (9,031) (4,891) (70) (4,961)
Taxation   (498) —  (498) (327) —  (327)
   (10,359) (153) (10,512) (5,218) (70) (5,288)
To Tal liabiliTies   (14,318) (153) (14,471) (5,218) (70) (5,288)
neT asseT s   19,234 1,484 20,718 7,513 246 7,759
caPiT al and reserves        
Called up share capital   248 —  248 204 —  204
Share premium account   3,487 —  3,487 3,462 —  3,462
Merger reserve   10,751 —  10,751 1,044 —  1,044
Other reserve  28 g) 678 677 1,355 —  295 295
Cumulative translation reserve  28 h) —  71 71 —  —  — 
Retained profit  28 i) 4,070 736 4,806 2,803 (49) 2,754
To Tal equiTY   19,234 1,484 20,718 7,513 246 7,759 GROUP NBT PLC ANNUAL REPORT 2008
40
Notes to the Consolidated Financial Statements continued
for the year ended 30 June 2008
28 first time adoption of ifrs continued
explanation of ifrs adJustments
a) operating expenses
        30 June 2007 
        IFRS adjusted 
        £’000
IAS 19 Employee benefits – provision for unused holiday pay accrued        83
Amortisation – adoption of IFRS 3 Business combinations has resulted in the goodwill  
arising from acquisitions to be frozen at transition date and reviewed annually for impairment.  
The amounts in respect of goodwill amortisation have been added back in the periods covered by IFRS     (1,178)
Upon adoption of IFRS 3 Business combinations identifiable intangible assets were recognised  
separately from goodwill and amortised over their useful economic life (IAS 38 Intangible assets)      359
         (736)
b) t axation
Deferred tax on unused holiday pay adjustment (IAS 12 Income taxes)       (25)
Deferred tax on amortisation of intangible assets recognised (IAS 12 Income taxes)      (95)
         (120)
c) g oodwill
       30 June 2007 1 July 2006 
       IFRS adjusted IFRS adjusted 
       £’000 £’000
Amortisation – adoption of IFRS 3 Business combinations has resulted in the goodwill  
arising from acquisitions to be frozen at transition date and reviewed annually for impairment.  
The amounts in respect of goodwill amortisation have been added back in the periods covered by IFRS    1,178 — 
Upon adoption of IFRS 3 Business combinations identifiable intangible assets were recognised separately from goodwill    (3,313) — 
Deferred tax on amortisation of intangible assets recognised (IAS 12 Income taxes)     853 — 
Trading losses and other permanent differences       900 —
        (2,182) — 
d) o ther intangible assets
Upon adoption of IFRS 3 Business combinations identifiable intangible assets were recognised separately from goodwill    3,313 — 
Upon adoption of IFRS 3 Business combinations identifiable intangible assets were recognised  
separately from goodwill and amortised over their useful economic life (IAS 38 Intangible assets)     (359) — 
        2,954 — 
e) d eferred tax asset
       30 June 2007 1 July 2006 
       IFRS adjusted IFRS adjusted 
       £’000 £’000
Deferred tax on amortisation of intangible assets recognised (IAS 12 Income taxes)     (853) — 
Deferred tax on gain at period end on unexercised share options (IAS 12 Income taxes)     677 295
Deferred tax on unused holiday pay adjustment (IAS 12 Income taxes)      46 21
Deferred tax on amortisation of intangible assets recognised (IAS 12 Income taxes)     95 —
Deferred tax on estimated tax losses recoverable (IAS 12 Income taxes)      900 — 
        865 316
f) t rade and other payables
IAS 19 Employee benefits – provision for unused holiday pay accrued       (153) (70)
g) o ther reserves
Deferred tax on gain at period end on unexercised share options (IAS 12 Income taxes)     677 295
h) exchange rate movements
Foreign exchange differences arising from the retranslation of net investment in subsidiary companies  
which do not have Sterling as their functional currency (IAS 21 The effects of changes in foreign exchange)    71 — 
i) r etained profit
Total adjustment to retained profit as a result of the IFRS adjustments outlined above     736 (49)
  GROUP NBT PLC ANNUAL REPORT 2008
41
Company Balance Sheet 
as at 30 June 2008
        2008  2007 
      Note £’000  £’000 
fixed asseT s   
Tangible assets      6 1,161  460 
Investments      7 27,120  23,995 
        28,281  24,455 
currenT asseT s   
Debtors      8 6,968  2,050 
Cash at bank and in hand       2,439  2,484 
        9,407  4,534 
crediT ors: amounT s fallinG due wiThin one Y ear      10 (14,750) (5,864)
ne T currenT liabiliTies       (5,343) (1,330)
To Tal asseT s less currenT liabiliTies       22,938  23,125 
crediT ors: amounT s fallinG due afTer more Than one Y ear     11 (2,957) (3,940)
Pro vision for liabiliTies      12 (643) — 
n eT asseT s       19,338  19,185 
caPiT al and reserves   
Called up share capital      13 251  248 
Share premium account      15 3,487  3,487 
Merger reserve      15 12,098  10,841 
Other reserve      15 855  678 
Profit and loss account      15 2,647  3,931 
shareholders’ funds      16 19,338  19,185 
These financial statements were approved by the Board of Directors and authorised for issue on 20 October 2008.
Signed on behalf of the Board of Directors
geoff wicks
chief executive officer
The notes on pages 42 to 48 form part of these financial statements. GROUP NBT PLC ANNUAL REPORT 2008
42
Notes to the Company Financial Statements
for the year ended 30 June 2008
1 accounting policies
Basis of preparation
These financial statements present financial information for Group NBT plc as a separate entity, and have been prepared in accordance with the historical cost 
convention, the Companies Act 1985 and United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice). The Company’s consolidated 
financial statements, prepared in accordance with International Financial Reporting Standards as adopted by the European Union, are separately presented. 
The principal accounting policies adopted in these Company financial statements are set out below and, unless otherwise indicated, have been consistently 
applied for all periods presented.
In accordance with FRS 18, Accounting policies, the Directors have reviewed the accounting policies of the Company as set out below and consider them 
to be appropriate. 
cash flow statement
The Company has taken advantage of the exemption from preparing a cash flow statement under FRS 1 (revised 1996), Cash flow statements. 
The principal accounting policies are:
share options
When shares and share options are granted to employees a charge is made to the profit and loss account and a reserve created in capital and reserves to record the 
fair value of the awards at the date of grant in accordance with FRS 20 Share‑based payment. This charge is spread over the vesting period. When shares and share 
options are granted to employees of subsidiary companies, the fair value of the awards is treated as a capital contribution, increasing the cost of the investment and 
spread over the period of performance relating to the grant. The corresponding entry is made in reserves.
revenue
Revenue is the total amount receivable by the Company for management and other services provided to other Group companies, excluding VAT, and is recognised 
on performance of these services. 
t angiBle fixed assets
Depreciation is provided on tangible fixed assets at the rates calculated to write off the cost of each asset evenly over its expected useful life as follows:
Computer equipment   – 33.3% – 50% straight line
Fixtures, fittings and equipment  – 33.3% straight line
Leasehold improvements  – over the period of the lease
investments 
Investments held as fixed assets are stated at cost less any provision for impairment in value. Where applicable, the Company takes advantage of merger relief, 
recording the investment in the Company’s balance sheet at the nominal value of the shares issued.
impairment of fixed assets
The need for any fixed asset impairment write‑down is assessed by comparison of the carrying value of the asset against the higher of its net realisable value 
and value in use.
pension costs
Contributions to the Company personal pension scheme are charged to the profit and loss account in the period in which they become payable. The Company 
does not operate any defined benefit pension plans.
dividend income
Dividend income from investments is recognised when the shareholders’ rights to receive payment have been established.
equity dividends
Final dividends are recognised in the Company’s financial statements in the period in which the dividends are approved by shareholders. Interim equity dividends 
are recognised in the period they are paid.
2 result for the financial year
The Company has taken advantage of Section 230 of the Companies Act 1985 and has not included its own profit and loss account in these financial statements. 
The Company loss for the year ended 30 June 2008 under UK GAAP was £781,000 (2007: profit £3,000).
Fees paid to BDO Stoy Hayward LLP and its associates for audit and other services to the Company itself are not disclosed in the individual accounts of Group NBT plc 
because the Company’s consolidated accounts are required to disclose such fees on a consolidated basis.
3 information regarding employees
Staff costs (including Directors’ emoluments) incurred in the year were as follows:
        2008  2007 
       £’000  £’000 
Wages and salaries       3,727 2,537 
Social security costs       313 264 
Share‑based payments       177 255
Pension costs       66 59 
          4,283 3,115  GROUP NBT PLC ANNUAL REPORT 2008
43
3 information regarding employees continued
The average number of employees during the year was made up as follows:
        2008  2007 
       number number
Administrative       26 22
Operational       40 28
          66 50
4 directors
The remuneration of Directors is set out below:
        2008  2007 
       £’000  £’000 
Directors’ emoluments       701  646 
Pension costs       34  32 
            735  678 
Share‑based payments       177  255 
Emoluments of highest paid Director:        
Emoluments       241  233 
Directors’ emoluments are detailed, by Director, in the Directors’ Remuneration Report on page 11 and this information includes the payments made to the personal 
pension scheme of the Directors. 
5 dividends
        2008  2007 
       £’000  £’000 
Final paid of 1.2 pence (2007: 0.8 pence) per share – relating to previous year’s results     302 163
Interim paid of 0.8 pence (2007: 0.6 pence) per share       201 147
Dividends paid in the year        503 310
The Board of Directors has proposed the payment of a final dividend of 1.6 pence per share (2007: 1.2 pence) which is payable on 7 January 2009 to shareholders 
on the register at 5 December 2008, subject to approval by shareholders at the Annual General Meeting on 27 November 2008.
6 t angi Ble fixed assets
      Fixtures   
      fittings   
     Computer and Leasehold  
     equipment equipment improvements Total 
     £’000 £’000 £’000 £’000
c osT      
At 1 July 2007     548 280 60 888
Additions     914 56 54  1,024
Reallocations     55 (55) —  — 
aT 30 June 2008     1,517 281 114 1,912
dePrecia Tion      
At 1 July 2007     272 136 20 428
Provided during year     235  66  22  323
Reallocations     23 (23) —  — 
aT 30 June 2008     530 179 42 751
neT book value      
aT 30 June 2008     987 102 72 1,161
At 30 June 2007     276 144 40 460 GROUP NBT PLC ANNUAL REPORT 2008
44
Notes to the Company Financial Statements continued
for the year ended 30 June 2008
7 investments
        Shares in  
        subsidiary  
        undertakings  
        £’000 
c osT      
At 1 July 2007        44,539 
Acquisitions in year        3,125 
aT 30 June 2008             47,664 
      
Provision      
At 1 July 2007        20,544 
Provided in year        — 
aT 30 June 2008             20,544 
      
neT book value      
aT 30 June 2008             27,120 
At 30 June 2007             23,995 
Details of the subsidiary companies at 30 June 2008 are as follows:
       Country of Proportion 
       incorporation of voting 
       and operation equity held
NetBenefit (UK) Limited       UK 100%
NetNames Limited*       UK 100%
NetNames International Limited       UK 100%
Easily Limited       UK 100%
NetBenefit Limited (dormant)       UK 100%
NetNames Inc*       USA 100%
Eurl Group NBT France        France 100%
Exalia Limited       UK 100%
Group NBT A/S       Denmark 100%
Ascio Technologies Inc*       USA 100%
Ascio Technologies GmbH*       Germany 100%
Speednames AB*       Sweden 100%
Speednames GmbH*       Germany 100%
Speednames AS*       Norway 100%
Speednames GmbH*       Switzerland 100%
Speednames Technology Holding ApS*       Denmark 100%
Speednames A/S*       Denmark 100%
Domain Trustees GmbH* (dormant)       Germany 100%
Speednames Hong Kong Ltd* (dormant)       Hong Kong 100%
Envisional Solutions Limited       UK 100%
Envisional Limited*       UK 100%
Envisional Technology Limited*       UK 100%
Envisional Inc* (dormant)       USA 100%
* These investments are not held directly by the ultimate holding company.
All of the above companies are involved in the provision of domain name, hosting, brand protection or other internet related services except for those denoted as dormant.
8 d eBt ors: amounts falling due within one year
        2008  2007 
       £’000  £’000 
Amounts owed by Group undertakings       6,649  1,762 
Deferred tax asset (note 9)       1  34 
Other receivables       71  7 
Prepayments and accrued income       247  247 
            6,968  2,050  GROUP NBT PLC ANNUAL REPORT 2008
45
9 deferred tax asset
The Company has recognised deferred tax assets to the extent that they are expected to be relieved by future taxable profits. The assessment of the recognised 
deferred tax assets has been made with reference to all available evidence including budgets and forecasts. The recognised deferred tax assets are as follows:
        2008  2007 
       £’000  £’000 
At 1 July 2007       34 51
Prior period adjustment       4 — 
Charge to profit and loss account       (37) (17)
aT 30 June 2008           1 34
Excess depreciation over capital allowances       (4) (12)
Short‑term timing differences       5 4
Unrelieved trading losses       —  42
aT 30 June 2008           1 34
The Company had potential deferred tax assets of £130,000 (2007: £78,000) that were not recognised at 30 June 2008 as the timing of the relief could not be assessed 
with sufficient certainty and a proportion of the tax losses has yet to be agreed with the UK revenue authority:
        2008  2007 
       £’000  £’000 
Short‑term timing differences       121  72 
Unrelieved trading losses       9  6 
            130  78 
10 c reditors: amount s falling due within one year
        2008  2007 
       £’000  £’000 
Bank loan       983 983 
Trade payables       640  206 
Amounts owed to Group undertakings       11,967  3,726 
Other taxation and social security       1  42 
Other creditors       92  65 
Accruals and deferred income       1,067  842 
            14,750  5,864 
11 c redit ors: amounts falling due after more than a year
        2008  2007 
       £’000  £’000 
Bank loan       2,957 3,940 
On 16 January 2007, a five year term bank loan of £5,000,000 was arranged for the acquisition of Group NBT A/S. The loan is secured by a fixed and floating charge 
over the Group’s assets and will be repaid by equal amounts over the loan term.
12 pro visions 
Deferred contingent consideration:
        2008  2007 
       £’000  £’000 
At 1 July 2007       —  — 
Amounts owed on acquisition of subsidiary       643  — 
At 30 June 2008           643  — 
Of the above amount which is based on achieving revenue targets, £155,000 has been earned and is due for payment during the first quarter of 2009. The balance 
of £488,000 is currently estimated to be payable by 2010. Further details of the consideration are included in note 25 in the consolidated financial statements. GROUP NBT PLC ANNUAL REPORT 2008
46
Notes to the Company Financial Statements continued
for the year ended 30 June 2008
13 c alled up share capital
      2008  2007  2008  2007 
     number Number £ £
auThorised ordinar Y shares of 1 Pence each    
At 1 July 2007     30,000,000 30,000,000 300  300 
Authorised during the year     10,000,000  —  100  — 
aT 30 June 2008       40,000,000 30,000,000 400  300 
 
allo TTed, called uP and full Y Paid ordinar Y shares of 1 Pence each  
At 1 July 2007     24,745,397 20,394,897 248  204 
Share options exercised     —  64,786 —  1 
Shares issued on acquisition     398,963 4,285,714  3  43 
aT 30 June 2008       25,144,360 24,745,397 251  248 
During the year, no shares (2007: 64,786) were issued for exercising share options in connection with acquisition of subsidiary undertakings and 398,963 shares 
(2007: 4,285,714) were issued in connection with the acquisition of subsidiary undertakings.
14 share‑Based payments
The Company has a number of employee schemes as shown below and options were granted both before and after 7 November 2002, the applicable date from 
which FRS 20 Share‑based payments became effective. As at 30 June 2005 all options granted after 7 November 2002 had vested and therefore were not required 
to be accounted for in accordance with FRS 20.
The Company operates an Enterprise Management Incentive Plan, an Inland Revenue Approved Scheme and an Unapproved Scheme.
The Enterprise Management Incentive Plan (EMI) is an HM Revenue and Customs approved discretionary director and employee share option scheme. 
Grants under this plan vest in period ranging from one to three years. There are no performance conditions attached to the grant of options save for the vesting 
periods although some option granted in 2003 were conditional upon the Group recording a profit in either years ending 30 June 2004 or 30 June 2005.
The Unapproved Scheme exists for grants to Directors and key management where the value of the options granted is in excess of the EMI scheme limits or 
where options cannot be granted under the EMI scheme. There are no performance conditions attached to the grant of options save for the vesting periods. 
The Company also has options outstanding under an HM Revenue and Customs Approved Scheme. No grants have been made under this scheme since 
September 2000.
The details of outstanding share options over ordinary shares of the Parent company are set out below. All option agreements are for a ten‑year period. 
All of the options listed below had vested and were exercisable by 30 June 2008.
enterprise management incentive plan
   At     at  at  
  Exercise 1 July    30 June 30 June 
  price 2007    2008 2008 
Date granted  £ outstanding Granted Exercised Lapsed outstanding exercisable
30 June 2003   0.25   630,000  — — —  630,000   630,000 
22 August 2003   0.01   11,500  — — —  11,500   11,500 
07 April 2003   0.01   6,500  — — —  6,500   6,500 
10 April 2006   1.30   38,610  — — —  38,610   38,610 
26 March 2007   3.14   62,000  — — —  62,000   62,000 
      748,610  — — —  748,610   748,610 
Weighted average exercise price (£)     
2008:    0.54  — — —  0.54  0.54
2007:     0.30   3.14   0.25  —  0.54  0.54
The weighted average share price at the date of exercise for the options exercised was nil (2007: £1.44). The total charge for the year relating to the scheme 
was nil (2007: £56,000). GROUP NBT PLC ANNUAL REPORT 2008
47
14 share‑Based payments continued
unapproved scheme
   At     at  at  
  Exercise 1 July    30 June 30 June 
  price 2007    2008 2008 
Date granted  £ outstanding Granted Exercised Lapsed outstanding exercisable
08 September 1998   0.25   24,000  — — —  24,000   24,000 
04 June 1999   2.50   25,000  — — —  25,000   25,000 
30 June 2003   0.25   105,000  — — —  105,000   105,000 
10 April 2006   1.30   100,000  — — —  100,000   100,000 
26 March 2007   3.14   218,000  — — —  218,000   218,000 
18 July 2007   3.03    200,000  — —  200,000   200,000 
      472,000   200,000  — —  672,000   672,000 
Weighted average exercise price (£)        
2008:    1.92   3.03  — —  2.25  2.25
2007:     1.15   3.14  —  2.50   1.92  1.92
The weighted average share price at the date of exercise for the options exercised was nil (2007: nil). The total charge for the year relating to the scheme was 
£177,000 (2007: £198,000).
approved scheme
   At     at  at  
  Exercise 1 July    30 June 30 June 
  price 2007    2008 2008 
Date granted  £ outstanding Granted Exercised Lapsed outstanding exercisable
18 September 2000   4.55   2,708  — — —  2,708   2,708 
Weighted average exercise price (£)        
2008:    4.55  — — —  4.55  4.55
2007:     2.83  —  2.34   2.34   4.55  4.55
The weighted average share price at the date of exercise for the options exercised was nil (2007: £3.38). The total charge for the year relating to the scheme 
was nil (2007: nil).
The fair value of the options granted during the current and prior year was calculated using the Black‑Scholes model as follows: 
     Options issued in year
        2008  2007
Share price (£)       £3.03 £3.14
Expected life (years)       3.00 3.25
Strike price (£)       £3.03 £3.14
Volatility       34.5% 35.6%
Dividend yield       1.0% 1.0%
Risk free interest rate       5.2% 5.0%
Fair value of each option at measurement date       £0.83 £0.91
The volatility assumption is based upon a statistical analysis of daily share prices over a period of between two and three years. The expected life of options is based 
on historical data and is not necessarily indicative of exercise patterns that may occur.
Directors’ share options are set out in the Directors’ Remuneration Report and total 1,237,610 (2007: 1,087,610).
o ther share‑Based payments
The Company committed to grant 1,000,000 options at an exercise price of £2.75 per share, vesting immediately and exercisable over a five year term, on 
16 January 2007 as part of the consideration in connection with the acquisition of Group NBT A/S. The total fair value of these options, £423,000 was calculated 
using the Black‑Scholes model and was included as part of the cost of investment. At 30 June 2008 970,000 (2007: 810,000) options had been issued. GROUP NBT PLC ANNUAL REPORT 2008
48
Notes to the Company Financial Statements continued
for the year ended 30 June 2008
15 s tatement of movements on reserves
    Share  Share  Merger  Other  Profit and loss  
    capital  premium  reserve  reserve account  
    £’000  £’000  £’000  £’000  £’000 
At 1 July 2007    248  3,487  10,841  678  3,931 
Issue of shares    3  — 1,257  — —
FRS 20 Share‑based payment charge    — — — 177  —
Dividends    — — — — (503)
Retained loss for the financial year    — — — — (781)
aT 30 June 2008     251  3,487  12,098  855  2,647 
The other reserve balance which arose in the previous year, moved by £177,000 in respect of share‑based payments charge relating to employee share options (note 14). 
16 reconciliation of movements in shareholders’ funds
        2008  2007 
       £’000  £’000 
Retained profit for the financial year       (781) 3 
Dividends           (503) (310)
       (1,284) (307)
Exchange movement on consolidation       —  60 
New share capital subscribed       3  69 
Merger reserve – issue of shares       1,257  9,707 
FRS 20 Share‑based payment charge         177  678 
Net addition to shareholders’ funds       153  10,207 
Opening shareholders’ funds       19,185  8,978 
closinG shareholders’ funds          19,338  19,185 
17 operating lease commitments
At 30 June 2008 the Company was committed to making the following payments during the financial year in respect of operating leases:
land and Buildings
Operating leases which expires:
        2008  2007 
       £’000  £’000 
Within one year       —  — 
In two to five years       —  196 
Over five years       268  — 
            268  196 
18 related parties
The Company has taken advantage of paragraph 3(c) of FRS 8 Related party disclosures, in not disclosing transactions with Group undertakings as more than 90% 
of its shares are controlled within the Group which is headed by Group NBT plc. There are no transactions with external related parties.   Group n Bt is a leading provider of domain names, hosting and brand 
protection services.
  It provides the essential building blocks to create, maintain and protect 
online brands. 
  Customers include British a irways, t he n ew Statesman and Centrica.
  Group n Bt has 293 employees and is based in l ondon with offices 
in Copenhagen, Cambridge, n ice, Munich, Zurich, o slo and n ew York.
About Group NBT IFC
Financial Highlights 2007/08 1
Group NBT at a Glance 2
chairman’s Statement 4
chief Executive’s review 5
report on corporate Governance 8
Board of Directors 9
Directors’ remuneration report 10
Directors’ report 12
Statement of Directors’ responsibilities 14
report of the Independent Auditors 15
consolidated Income Statement 16
consolidated Statement of changes in Equity 17
consolidated Balance Sheet 18
consolidated cash Flow Statement 19
Notes to the consolidated Financial Statements 20
company Balance Sheet 41
Notes to the company Financial Statements 42
officers and Advisers IBC
Group NBT offices IBC
About
2003/04 2004/05 2005/06 2006/07 2007/08
£0.7m
£2.1m
£2.8m
£3.7m
£5.5m
2003/04 2004/05 2005/06 2006/07 2007/08
£7.7m
£11.3m
£13.8m
£22.4m
£35.3m
rEvENuE uNDErlyING prE-TAx proFIT*
2005/06 2006/07 2007/08
£9.3m £15.7m
rEvENuE B y SErvIcE
£7.8m
£5.1m
£5.4m
£1.3m
£7.5m
£3.5m
£2.1m
£5.0m
£7.4m
£1.4m
 
Domain name management
 Online
 Managed hosting
 Reseller
 Brand protection
2005/06 2006/07 2007/08
£15.5m £19.5m
rEvENuE B y rEGIoN
£14.6m
£1.2m
£6.0m
£0.9m
£12.3m
£0.7m
£0.8m
 UK
 Other European
 US
*excluding restructuring costs and amortisation
Officers and Advisers
DIrEc TorS
JoHN pArcEll 
(Non-executive chairman)
GEoFF WIck S
(chief Executive officer)
JoNATHAN roBINSoN
(chief operating officer)
rAJ NAGEv ADIA
(Finance Director)
kEITH y ouNG
(Non-executive)
TIm ASHl Ey
(Non-executive)
rIcHArD mADDEN
(Non-executive)
clAuS ANDErSEN
(Non-executive)
SEcrETAry
rAJ NAGEv ADIA 
rEGISTErED AND HEAD oFFIcE
3rd Floor 
Prospero House 
241 Borough High Street 
London SE1 1GA
c omp ANy NumBEr
3709856
rEGISTrArS
cApITA rEGISTrArS lImITED
Northern House 
Woodsome Park 
Fenay Bridge 
Huddersfield 
West Yorkshire HD8 0LA
BANk ErS
BANk oF Sco TlAND
Corporate 
Bishopsgate Exchange 
Level 7 
155 Bishopsgate Exchange 
London EC2M 3YB
SolIcIT orS
NABArro
Lacon House 
84 Theobald’s Road 
London WC1X 8RW
FINANcIAl ADvISErS
NumIS SEcurITIES lImITED
10 Paternoster Square 
London EC4M 7LT
STockBrok ErS
NumIS SEcurITIES lImITED
10 Paternoster Square 
London EC4M 7LT
AuDIT orS
BDo ST oy HA yWArD llp
55 Baker Street 
London W1U 7EU
 Offices
uNITED kINGDom
l oNDoN
3rd Floor 
Prospero House 
241 Borough High Street 
London SE1 1GA
cAmBrIDGE
Betjeman House 
104 Hills Road  
Cambridge CB2 1LQ
uS
13th Floor 
55 Broad Street 
New York NY 10004–3715
FrANcE
Green Side BP 296 
400 Avenue Roumanille 
06906 Sophia Antipolis Cedex
GErmANy
OG, Nord, Landshunter Allee 12–14 
80637 München
DENmArk
Islands Brygge 55 
2300 København S
Nor WAy
Majorstuhuset 
Kirkeveien 64A 
N–0364 Oslo
SWITzErlAND
Staffelstrasse 10 
CH–8045 Zürich annual RepoR t 2008
www.groupnbt.com
Group NBT plc
3rd Floor 
Prospero House 
241 Borough High Street 
London SE1 1GA
Tel: +44 (0)207 015 9200 
Fax: +44 (0)870 458 9506 
www.groupnbt.com
Group NBT plc  annual RepoR t 2008