Designed
to succeed
International Greetings plc 
Annual report and accounts 2012 Contents
Overview
1 Highlights
2 Our strategy
4  Our design process
6 Chairman’s statement
Business review
8 Chief Executive Ofﬁcer’s review
11 Financial review
15 Risk management
Governance
17 Board of Directors
18 Corporate governance statement
20 Directors’ report
24  Directors’ remuneration report
27 Directors’ responsibilities
Financials
28  Independent auditors’ report
29  Consolidated income statement
30  Consolidated statement 
of comprehensive income
31   Consolidated statement of changes in equity
32 Consolidated balance sheet
33   Consolidated cash flow statement
34   Notes to the ﬁnancial statements
68  Statement of Directors’ responsibilities for 
the parent company ﬁnancial statements
69   Independent auditors’ report
71 Company balance sheet
72   Notes to the Company ﬁnancial statements
rs remuneration report
rs’ responsibilities
Welcome to International Greetings
We are one of the world’s leading designers, 
manufacturers, importers and distributors 
of gift packaging and greetings, stationery 
and creative play products.
Our mission
To succeed by design in all that we do, to 
drive proﬁtable growth through exceptional 
customer service, industry leading innovation 
and great value. 1 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
 Proﬁt before exceptional items and tax up 37% to £7.1 million (2011: £5.2 million)
 Cash generated from operations of £11.5 million (2011: £10.7 million)
 Debt down 6% to £41.7 million (2011: £44.4 million) and year-end leverage 
at 2.8 times (2011: 3.5 times)
 Restructured our Board in preparation for a new era of growth
Completed important investment in future efﬁciency at our operations 
in the Netherlands and China
Awarded the prestigious "Turnaround PLC of the year" from the Institute 
for Turnaround
Highlights
Visit us online: www.internationalgreetings.co.uk
Sales (£m)
£221m 
221
217
198
Proﬁt before exceptional items and tax (£m)
£7.1m 
7.1
5.2
Operating proﬁt before exceptional items (£m)
£10.7m 
10.7
8.1
6.5
Net debt (£m)
£41.7m 
41.7
44.4
48.8 3.5
12
11
10
11
10
11
10
11
10
12
12
12
+33% +2%
+37% -6% 2 International Greetings plc Annual report and accounts 2012
Our strategy
Great design, innovative product solutions, 
outstanding value and customer service.
That’s what we focus on.
Our strategy is core to our business’s success. Our ﬁve key focus points drive the Company 
forward and keep us reaching for the high standards and targets we set ourselves.
1  Nurturing valuable 
relationships
2  Creating a toolbox 
of expertise
3  Providing best 
quality, value  
and service
4  Giving our people 
the knowledge  
they need
5  Balancing our 
business
1. Nurturing 
valuable 
relationships
We continually nurture 
the deep and mutually 
valuable relationships 
we enjoy with our 
customers by delivering 
great design, innovative 
product solutions 
and outstanding 
customer services.
2. Creating a 
toolbox of 
expertise
We have created a 
toolbox of marketing, 
design, product  
and brand category 
expertise which is 
exploited in every 
market through local 
entrepreneurial 
management. 3 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
3. Providing best 
quality, value 
and service
We are constantly 
enhancing our 
capabilities in buying, 
innovation, sourcing 
and manufacturing so 
we can leverage these 
to provide best quality, 
value and service.
4. Giving our people 
the knowledge 
they need
We strive to give our 
people knowledge, tools 
and inspiration to create 
value for the Company 
and help them pursue 
their careers and goals.
5. Balancing our 
business
We continue to balance 
our business across 
different geographic 
regions, seasons, product 
categories and brand, 
thereby improving 
margins and the proﬁle 
of our proﬁtability.
  Christmas £111.7m 51% (2011: £115.5m 53%)
  Everyday £109.1m 49% (2011: £101.3m 47%)
Revenue by season
  Customer own brand £101.6m 46% (2011: £104.0m 48%)
  Trade/generic £119.2m 54% (2011: £112.9m 52%)
Revenue by brand
  Gift packaging and greetings £148.5m 67%  
(2011: £142.4m 66%)
  Stationery and creative play £72.2m 33%  
(2011: £74.4m 34%)
£221
Revenue by product category Revenue by customer destination
  UK £84.6m 39% (2011: £89.9m 41%)
  USA £58.4m 26% (2011: £53.1m 25%)
   Europe £39.8m 18% (2011: £43.7m 20%)
  Australia and New Zealand £29.6m 13% (2011: £25.6m 12%)
  Rest of the world £8.4m 4% (2011: £4.6m 2%)
£217
£221
£217
£221
£217
£221
£217
12
12
12
12
11 11
11 11 4 International Greetings plc Annual report and accounts 2012
Our design process
Following our products from concept 
to customer .
Because it all starts with design.
Our design and product development process is constantly improved 
to maximise efﬁciency and therefore proﬁt.
A collaborative approach 
Accessing knowledge and 
research, including customer, 
consumer and market trends,  
we develop fresh, new designs 
and products to generate sales  
in over 80 countries worldwide.
Commercially driven design 
and product development
Our products are designed and 
engineered to provide commercially 
appealing solutions and leverage 
global sales whilst reflecting 
local knowledge.
1
2 5 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
Focused on meeting customer expectations
Our focus is on supplying our customers with products that meet 
consumer needs. The establishment of these relationships has been 
key to the development of the business. We are concentrating our 
efforts on the growing discount and value-end retailers where 
operational efﬁciency is key to sustainable and competitive 
supply on a proﬁtable basis.
Meeting quality standards
Quality control at the point of 
manufacturing and distribution  
is an integral part of the service 
provided to meet the rigorous 
standards required by today’s 
major retailers.
Providing award 
winning services
A flexible and broad base  
of logistics and inventory 
management enables us to 
provide award-winning services 
to our customers.
3
4
to view our brochures and catalogues,  
visit www.internationalgreetings.co.uk 6 International Greetings plc Annual report and accounts 2012
Key achievements
  Proﬁt before exceptional items and tax 
up 37% to £7.1 million (2011: £5.2 million)
  Cash generated from operations 
of £11.5 million (2011: £10.7 million)
  Debt down 6% to £41.7 million 
(2011: £44.4 million) and year-end 
leverage at 2.8 times (2011: 3.5 times)
  Restructured our Board in preparation 
for a new era of growth
  Completed important investment in 
future efﬁciency at our operations in the 
Netherlands and China
  Awarded the prestigious "Turnaround PLC of 
the year" from the Institute for Turnaround
Following the restructuring of the Group over the past 
several years, our focus now is on improving efﬁciency, 
developing sales and growing proﬁts in the areas of our 
business where we are committed to be true market 
leaders, whilst continuing to look at every opportunity 
to improve our cost effectiveness in competitive and 
challenging markets. It is therefore a continuous 
strategy that we seek out initiatives to improve our 
margins as a consequence of reducing our cost of goods 
by implementing manufacturing efﬁciencies, creative 
product development and effective sourcing techniques. 
To these ends, during the year we have made signiﬁcant 
investments to relocate our manufacturing facilities in 
China and install a state-of-the-art gift wrap printing 
press in our company in Holland. Within each of the 
countries that we operate, we see that consumers and, 
as a consequence our retail customers, are increasingly 
looking for "value for money" in the products that they 
purchase. Accordingly, we challenge the management in 
all our businesses to ﬁnd ways to not only look for sales 
and proﬁt opportunities, but also to deliver improved 
gross margins.
As previously advised, Keith James retired as our 
Chairman following the Annual General Meeting in 
September 2011. Keith joined the Board in 2004 and 
was appointed Chairman in 2006. I should like to place 
on record our thanks and appreciation for the signiﬁcant 
contribution that he made to the Group during that period. 
Under his leadership, the Group successfully carried out 
some essential reorganisation and restructuring and is 
now well placed to go forwards. I wish Keith a long, 
happy and healthy period of retirement.
During the year three of our Executive Directors also left 
our Group. Charles Uwakaneme, who played an important 
role in the reorganisation of our businesses in the UK 
and continental Europe, retired at the same time as 
Keith James. Sheryl Tye, our Group Finance Director left 
in September , having played a vital part in the restructuring 
of our ﬁnances, systems, controls and management 
reporting over the past three years. Martin Hornung, 
I am proud and privileged to have been appointed 
Chairman of our Group, following the retirement of my 
predecessor, Keith James, during September 2011. It is 
therefore very pleasing for me to report that the Group 
has made good progress, with proﬁts before exceptional 
items and tax increasing by 37% over the prior year to 
reach £7.1 million. At the same time our balance sheet 
continues to strengthen, showing a reduction in net 
debt and an improvement in our leverage ratio.
Revenues for the year ended 31 March 2012 rose by 2% 
to £221 million, from continuing operations. Operating 
proﬁt before exceptional items was up 33% to £10.7 million 
and £6.8 million after exceptional items whilst, as stated, 
proﬁt before exceptional items and tax was up 37% to 
£7.1 million and £3.2 million after exceptional items. 
Debt fell by 6% to £41.7 million and cash generated 
from operations, excluding exceptional items, rose 
to £15.4 million, compared with £12.4 million the 
previous year.
A year of continued progress 
to deliver improved 
shareholder value.
Chairman’s statement
John Charlton Chairman  7 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
who joined our Group 22 years ago following our 
acquisition of the cracker company Brite Sparks was 
responsible for our manufacturing and sourcing ofﬁces 
in China and Hong Kong; Martin left in December 2011. 
We also saw the departure of Chris Howell from our 
Board, following his three year term of ofﬁce. Chris 
joined as a Non-Executive Director in 2009 and was 
Chair of our Audit Committee. I should like to thank each 
of them for their contributions to our various successes 
over the years and their loyalty and support. On behalf 
of the Board, we wish them every success for the future.
However , I am delighted to welcome three new Directors 
to the Board. Anthony Lawrinson joined as Chief Finance 
Ofﬁcer in October 2011. Anthony previously held the same 
role with Reliance Security Group Limited and prior to that 
O2 Airwave. Elaine Bond joined as a Non-Executive Director 
in February 2012. Elaine is also a Non-Executive Director 
of Yorkshire Ambulance Service and was previously 
Group Operations Director of UK Greetings Ltd, the UK’s 
largest manufacturer of greeting cards, gift wrap and 
related social expression products. Phil Dutton joined 
as a Non-Executive Director in May 2012 and is also Chair 
of our Audit Committee. Phil was previously Finance Director 
of Matalan Plc, Finance Director of Asda Stores and more 
recently Group Finance Director of Punch T averns Plc. I wish 
all three every success and fulﬁlment on joining our Board 
and look forward to working with them.
to read more about our range of products,  
visit us online at www.internationalgreetings.co.uk
I should like to thank my colleagues on the Board for 
their hard work and support that they have given to 
me personally and for their loyalty, commitment and 
contributions to the Group. Similarly, I wish to record 
our thanks and appreciation to all our staff within 
the Group for their loyalty, efforts and support.
It is through their hard work that we are making 
the progress that I am able to report. Finally, I thank 
our shareholders, bankers, customers, suppliers and 
advisors for their loyalty and continuing support to 
our businesses throughout the world that comprise 
International Greetings plc.
John Charlton
Chairman 8 International Greetings plc Annual report and accounts 2012
Key Achievements
  Highlight to be supplied.
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Key achievements
  Operating proﬁt before exceptional items 
up 33% to £10.7 million and £6.8 million 
after exceptional items
  Cash generated from operations before 
exceptional items £15.4 million
  Debt down 6% to £41.7 million
  Successful relocation of China factory
  Reorganisation of Hong Kong 
based operations
  Installation of new state-of-the-art gift 
wrap manufacturing in Holland
  Operational streamlining in the UK
  Major proﬁts growth in USA
Focussing on growth
Chief Executive Ofﬁcer's review
Despite continued inflationary pressures on our cost base, 
we have achieved improved efﬁciencies, particularly 
through reorganisation in the UK and Hong Kong and 
investment in manufacturing in China and Holland. 
These actions have enabled us to maintain our ability 
to proﬁtably compete in commoditised markets, whilst 
providing exceptional value and excellent service to our 
customers on a worldwide basis.
The encouraging growth outlined above has been 
achieved despite the continued challenging market 
conditions and we remain focused on identifying and 
delivering new and signiﬁcant opportunities for 
accelerating future proﬁts growth.
Geographical highlights
UK and Asia
The UK and Asia business accounted for 53% (2011: 54%) 
of the Group’s revenue for the year . Sales were sustained 
following strong growth in the prior year, driven by a 
notable expansion and contribution in product categories 
targeted at entry level price points, which led to 
record-breaking volumes and efﬁcient manufacturing.
The year saw a particularly strong performance in our 
gift packaging and greetings categories, with a 70% 
increase in our sales of single greeting cards in the UK 
market. We expect this growth to continue following the 
commencement of trading in the area of personalised, 
digital, online greetings and the expansion of our 
portfolio of products and service within this marketplace.
Within the UK, our businesses engaged in the stationery, 
creative play and gift categories have continued to improve 
proﬁtability, by focusing on operational efﬁciency and a 
collaborative approach to sales and product development.
The ever-closer co-operation of our UK and Asia based 
operations, enabled us to provide on-time, in-full deliveries 
throughout the year , whilst reducing our cost base through 
the merger and reorganisation of our Hong Kong-based 
sourcing, quality control and customer liaison facilities. 
I am pleased to report that we have delivered another 
year of solid growth with excellent progress achieved 
across our portfolio of activity. As a result, operating 
proﬁt, before exceptional items, has exceeded market 
expectations, whilst we have also continued our trend, 
in recent years, of generating increased levels of cash 
and reducing debt.
The sustained increase in gross margins, sales and 
proﬁtability reflects the strong platform we now have 
in place across the business. This, combined with our 
ability to design and engineer commercially appealing 
product solutions and develop innovative and added value 
categories, has enabled us to deliver sustained growth 
at Group level since 2008. 
Paul Fineman Chief Executive Ofﬁcer  9 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
Australia
Artwrap Australia accounted for 13% (2011: 12%) of the 
Group’s revenue for the year. Sales increased by 16%, 
in a currently resilient marketplace, and the business 
continued to expand its customer base throughout 
Australia, New Zealand and the Paciﬁc Region.
To support future growth and deliver greater efﬁciency, 
we have invested in fast payback improvements to our 
Melbourne-based logistics facilities, that are planned to 
have an impact in the next ﬁnancial year and beyond.
Customers and licences
We have once again seen the expansion in our global 
sales of products developed under our portfolio of 
International Greetings’ own generic brands, thus 
enabling us to leverage our designs and product 
development on a worldwide basis.
At the same time, we have enjoyed considerable success 
in the areas of licensed product categories and during 
the year, in addition to strong sales of well-established 
"perennial" characters, we have seen excellent performance 
in the sales of a wide selection of our Peppa Pig™ products 
and the recently introduced Monster High™ range. 
Our licensed characters and brands in 2012/13 continue 
to help us provide our customers with a superb choice 
of generic licensed and bespoke products.
The relocation of our China-based manufacturing facilities 
from Shenzhen to Huizhou will result in the establishment 
of a lower cost base that will enable us to remain 
competitive, whilst providing the highest standards 
of quality and service to our global customers.
Mainland Europe
In what is currently the most challenging of our main 
markets, mainland Europe accounted for 13% (2011: 15%) 
of the Group’s revenue for the year, representing a fall in 
revenue of 13%. Nevertheless, tight control of overheads 
and margins ensured that all of our European businesses 
were proﬁtable and the purchase and timely installation 
of a new, highly efﬁcient gift wrap manufacturing plant 
in Holland has enabled us to establish new opportunities 
for reduced cost and proﬁtable expansion.
However, as in other regions, value and mass 
market retailers have proved to be most resilient 
to economic conditions and we have established 
and nurtured important relationships with many 
of the key pan-European retail groups which will 
serve us well going forward.
USA
The USA operations accounted for 20% (2011: 19%) of the 
Group’s revenue for the year. Sales increased by 13% and 
proﬁts improved signiﬁcantly on the prior year , continuing 
the trend established in 2011. 
Growth was delivered across all business segments 
and, from an operational perspective, we achieved good 
execution of production, procurement and shipping.
Whilst our business has enjoyed growth with our 
major customers, including the world’s largest retailers, 
we have developed and expanded our trading base, 
with over 1,000 new customers established over the 
last two years. In addition, we have also developed 
incremental product categories and customer channels 
for future growth. Of particular note is the growth 
achieved with retailers specialising in $1 priced 
merchandise, where we provide great design 
and value to a fast growing market. 10 International Greetings plc Annual report and accounts 2012
Chief Executive Ofﬁcer's review (continued)
Customers and licences continued
Whilst we have long established relationships with 
many of the world’s major retailers, there remains 
signiﬁcant opportunity for us to expand our business 
with existing customers, as well as with targeted new 
customers and channels. We remain fully aware of 
the changing dynamics in the marketplace and have 
established a flexible and efﬁcient manufacturing 
and sourcing base to meet the needs of our customers 
in a competitive marketplace, offering global scale 
with local knowledge and service.
Our team
Our teams across the Group have continued to meet the 
challenges of combatting cost inflation, whilst providing 
the highest standards of product and service to customers 
whose focus and main areas of growth have been in 
entry level price point categories. This has been reflected 
in the impressive growth of our gross margins through 
the combination of driving efﬁciency and adding value 
through innovation.
I take the opportunity of thanking our teams for their 
energy, enthusiasm and commitment in continuing to 
drive our business forward.
Our strategy
Our ﬁve key focus points enable us to achieve high 
standards and reach the targets we set ourselves:
 Nurturing the mutually valuable relationships we 
enjoy with our customers, suppliers and stakeholders.
 Creating a toolbox of marketing, design, product 
and brand category expertise.
 Providing best quality value and service through 
optimum product development, manufacturing, 
sourcing and supply.
 Giving our teams across the world the knowledge 
and tools needed to achieve their goals.
 Balancing our business, through sustainable and 
growing sales across geographic regions, seasons, 
product categories and brands.
Designed to succeed
The disciplines and processes that have been put in 
place in recent years to enable us to signiﬁcantly reduce 
debt and improve leverage remain important to us. 
We have now established an organisation, strategy 
and culture to sustain existing income streams and 
drive proﬁtable expansion of our global businesses, 
which are increasingly working together to drive 
efﬁciencies and harness opportunities. 
Whilst one of our core competencies is our ability to 
design commercially appealing products that meet the 
needs of our customers and consumers, we have focused 
our energies to ensure that all aspects of our business 
– operational, ﬁnancial and commercial – are designed 
to succeed.
I am delighted that our 2011/12 results were ahead 
of market expectations and we are focused on achieving 
continued sustained growth across the business during 
2012/13 and beyond. We remain focused on identifying new 
opportunities and implementing plans for future growth 
and ultimately on continuing to drive shareholder value. 
Paul Fineman
CEO
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ns,  11 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
Key achievements
  Sales up 2% to £221 million from continuing 
operations despite challenging markets 
in Europe
  Gross proﬁt margins up from 17.4% to 19.3%
  Operating proﬁt before exceptional items 
up 33% to £10.7 million
  Proﬁt before exceptional items and tax 
up 37% to £7.1 million
  Cash generated from operations 
before exceptional items of £15.4 million 
(2011: £12.4 million)
  Net debt down from £44.4 million to 
£41.7 million which, together with increased 
proﬁtability, reduces year-end leverage 
to 2.8 times down from 3.5 times
  New longer-term banking facilities 
in place in UK and USA
Increasing proﬁt, 
decreasing leverage.
(2011: £216.9 million). External sales from the UK were 
maintained following strong growth in the prior year 
(+8%). Europe was our most difﬁcult marketplace where 
external sales fell 13%. However, this was more than 
offset by excellent sales growth at our USA and Australian 
operations of +13% and +16% respectively.
Gross proﬁt margin has increased signiﬁcantly to 19.3% 
(2011: 17.4%) and reflects continued margin recovery in the 
UK but also margin development in the USA and especially 
Australia. Geographical diversity, an improving mix of 
own brand products and innovative design engineering 
to price points have created this result in markets where 
we have seen deflationary pressure on selling prices 
and inflationary pressure on raw materials and goods 
sourced from the Far East.
Favourable sea freight rates in 2011/12 have helped to 
offset these pressures but this beneﬁt is not continuing 
in the current year . Increasing rates will make further gross 
margin improvement more difﬁcult in the year ahead.
Overheads in absolute terms have increased year-on-year 
by £1.1 million, excluding the effect of currency (£0.8 million). 
However, this primarily reflects the effect of beneﬁts in 
2010/11 which did not recur in 2011/12, increasing spend 
on medium-term business development opportunities 
and investment in people (particularly sales) in our 
growing USA and Australian markets. Cost control remains 
tight and the opportunity to generate substantial 
improvements to proﬁtability with limited investment in 
our overhead base remains clear . Opportunities to remove 
or reduce costs are constantly sought out and new costs 
are only incurred where actual or prospective value can 
be demonstrated.
Operating proﬁt before exceptional items increased by 
33% to £10.7 million (2011: £8.1 million). After exceptional 
items, operating proﬁt was £6.8 million (2011: £7.2 million).
Group performance
Our focus on margins, operating proﬁts and cash 
management has resulted in further steady improvement 
to the ﬁnancial position of the business. Net debt as a 
multiple of pre-exceptional EBITDA has fallen to under 
2.8 times (2011: 3.5 times) at the year end and our 
portfolio of international businesses has provided 
ﬁnancial resilience in tough trading markets.
Continuing operations
Revenues from continuing operations for the year to 
31 March 2012 were up slightly by 2% to £220.8 million 
Anthony Lawrinson Chief Financial Ofﬁcer 
Financial review 12 International Greetings plc Annual report and accounts 2012
Continuing operations continued
Exceptional items during the year amounted to £3.9 million 
before tax (2011: £0.9 million). As previously announced 
these relate to:
 restructuring relating to Board of Directors and senior 
personnel within our UK businesses (£1.2 million) which is 
expected to result in annual savings of £0.6 million; and
 the relocation of our factory in China and associated 
restructuring of management (£2.7 million). This 
included relocation/redundancy costs, relocation 
of equipment and costs of exit from our previous 
leasehold arrangements.
The signiﬁcant investment to relocate our factory 
within China will materially reduce rental and labour 
costs, generating both absolute savings and mitigating 
the effect of labour inflation that would otherwise have 
been experienced. Payback is expected to be approximately 
two years.
Finance expenses in the year were £3.6 million 
(2011: £2.9 million) despite falling year-end debt. 
This change reflects increased costs and margins 
associated with the reﬁnancing and extension of our 
banking facilities to longer maturities (£0.4 million) but 
also unrealised market movements on Euro-denominated 
interest rate swaps, which were not hedge accounted 
(£0.3 million). Notes 8 and 20 to the ﬁnancial 
statements provide further information.
Proﬁt before exceptional items and tax was up 37% 
to £7.1 million (2011: £5.2 million). 
Proﬁt before tax from continuing operations was 
£3.2 million (2011: £4.3 million) after charging exceptional 
items of £3.9 million (2011: £0.9 million). 
Taxation
The headline taxation charge of £1.75 million 
(2011: credit £0.7 million) or 55.3% arises because of the 
exceptional costs associated with the factory relocation 
in China, where no taxation relief has been recognised 
as the prospect of this crystallising is low. 
The effective underlying tax charge on proﬁts before 
exceptional items is 27.5% (2011: tax credit 8.0%) with the 
prior period beneﬁting from recognition of deferred tax 
assets relating to historical losses in the USA and loss 
carry-backs in Europe. Actual taxation paid in cash 
during the year amounted to £1.1 million (2011: £0.4 million) 
and arose almost entirely in Australia.
The current geographical proﬁle of Group proﬁts before 
exceptional items at current local rates of tax would 
result in an underlying blended tax rate of approximately 
31%. However, there are still losses in the USA and UK 
with a current tax value of £4.8 million, not yet 
recognised in the balance sheet, and the opportunity to 
recognise and utilise these as proﬁtability improves will 
suppress the actual tax rate for some time to come.
Proﬁt for the year
Proﬁt for the year was £1.4 million (2011: £4.9 million). 
However, this was after charging £3.7 million 
(2011: £0.6 million) in respect of exceptional items. 
Earnings per share and dividends
The basic earnings per share was 0.3p (2011: 7.5p). After 
removing the effect of exceptional items, the adjusted 
earnings per share increases to 7.2p (2011: 8.9p). However , 
the effect of the prior year taxation credit as compared 
with current year charge was to increase adjusted earnings 
per share in the prior year by approximately 3.4p. This 
means that the true underlying change in earnings per 
share is an increase from 5.5p to 7.2p. 
A large proportion of employee share options vested 
in December 2011 and, as these are exercised, earnings 
per share will trend towards the fully diluted levels. 
At 31 March 2012, 1.0 million shares had been exercised 
with a further 4.5 million shares which had vested but 
not yet been exercised.
No dividend was paid during the year (2011: £Nil) and 
the Board does not propose a ﬁnal dividend for the year. 
The primary focus remains the reduction of leverage from 
the current level of 2.8 times EBITDA to below 2.0 times 
EBITDA. At this point, the Board will consider whether it 
is appropriate to resume dividends. 
Financial review (continued)
to read more about our range of products,  
visit us online at www.internationalgreetings.co.uk 13 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
Balance sheet and cash flow
Net debt at 31 March 2012 reduced by 6% to £41.7 million 
(2011: £44.4 million) (see notes 19 and 29 to the 
ﬁnancial statements). 
Year-end net debt includes amounts denominated in 
US dollars of $20.7 million (2011: $21.4 million) and in 
euros of €11.0 million (2011: €14.9 million). The year-end 
exchange rates were $1.60 (2011: $1.61) and €1.20 (2011: €1.13).
Working capital management continues to be a priority. 
Outstanding debtors are monitored closely, both to 
maximise cash but also to reduce our credit risk. Trade 
debtors fell slightly to £17.1 million (2011: £17.4 million) 
on slightly increased sales with foreign exchange rates 
representing one third of this small reduction. The charge 
for bad and doubtful debts in the year was minimal 
and at year end debtors net of provisions in excess 
of 60 days overdue at £0.4 million accounted for just 
2.5% of the debtor balance, reflecting continual and 
careful attention to this risk.
Gross stock levels declined by 8.2% from £51.6 million 
to £47.3 million. This is despite the fact that, as last year, 
success in obtaining early ﬁrm customer orders allowed 
more factory production to begin for the coming season 
ahead of the traditional summer peak. This allows more 
efﬁcient use of resources throughout the year , reducing costs.
Older stock (measured as over 15 months since last 
purchase) fell by a further 35% (2011: 25% reduction) 
to £5.2 million (2011: £8.1 million). Our businesses have 
consistently achieved in excess of 100% recovery against 
written down values of old stock, indicating adequate 
provisioning levels.
Group cash generated from operations was £11.5 million 
(2011: £10.7 million). Stated before outflows relating to 
exceptional items, cash generated from operations was 
stronger still at £15.4 million (2011: £12.4 million).
Capital expenditure was slightly above depreciation 
but remains relatively low at £4.4 million for the year 
(2011: £2.7 million). This reflects the investment in a new 
state-of-the-art printing press at our gift-wrap 
manufacturing operation in Europe and modest 
capital costs associated with the setup of our new 
factory location in China. Both investments will improve 
efﬁciencies and further enhance our competitive portfolio 
of products and services. 
The property in the USA purchased last year and held for 
resale was disposed of in the year realising £0.5 million.
Equity attributable to shareholders has decreased from 
£48.1 million to £47.8 million. The reduction arises despite 
proﬁts generated because of reductions to unrealised 
hedging and translation reserves.
Risks and key performance indicators
Our areas of primary focus are:
 improved proﬁtability, which we aim to achieve 
through top line growth in selected markets and 
channels together with strong cost and gross margin 
management; and
 lower leverage measured as the ratio of net debt to 
pre-exceptional EBITDA, which we aim to achieve 
through improved proﬁtability together with close 
management of our working capital.
Operationally we are increasing the spread of our revenue 
base and enhancing our margins by seeking to balance 
our business across: 
 different territories – turnover to UK destinations has 
fallen to 39% from 41% (see note 4);
 different products – stationery and creative play 
products account for 33% of turnover (see note 4);
 more everyday products across the year – despite 
the strength of giftwrap sales, which are strongly 
seasonal, everyday product represents 49% of 
revenue, up from 47% last year; and
 brands – the proﬁle of IG brands and licensed 
products continues to grow with sales in this 
category now representing 54% of our revenue 
up from 52% last year.
Gross margin
19.3%
Good management of product mix and engineering 
has driven margins higher despite price pressures.
11
10
19.3 12
17.4
17.0 14 International Greetings plc Annual report and accounts 2012
47.3 5.2
Treasury operations
As announced in last year’s annual report, in July 2011 the 
principal bank of the Group agreed to restructure and extend 
its facilities as follows, providing a sound capital foundation 
with a maturity proﬁle to suit the Group’s needs:
 two term loans, totalling £29.9 million, split between 
US dollars and sterling, and repayable over ﬁve years, 
with a £14.9 million repayment on the ﬁfth anniversary;
 a two year asset backed loan facility secured on the 
stock and debtors of the two largest UK businesses;
 a one year rolling revolving multi-currency credit 
facility of up to £33.4 million; and
 a one year rolling multi-currency overdraft facility 
of up to £5 million.
The blended interest rate on these facilities in 2011/12 was 
just over 4% and the short-term element of these facilities 
was renewed on improved terms in May 2012, which will 
slightly lower the blended rate in the forthcoming year 
and provides signiﬁcant additional headroom, giving the 
Group the flexibility to take advantage of value enhancing 
supplier and customer terms where appropriate.
Additionally, access to facilities was diversiﬁed through 
the addition of a USA bank in July 2011 who provide a 
three year asset backed loan facility of up to $25 million, 
at a rate of 2.5% over USA LIBOR.
There are ﬁnancial covenants attached to our facilities 
and the Group comfortably complied with these 
throughout the year. These covenants include:
 debt service, being the ratio of cash flow available 
to ﬁnance costs on a rolling twelve month basis; 
 interest cover, being the ratio of earnings before 
interest, depreciation and amortisation to interest 
on a rolling twelve month basis;
 leverage being the ratio of debt to pre-exceptional 
EBITDA on a rolling twelve month basis; and
 in the individual businesses which have asset backed 
loans, covenants of pre-exceptional EBITDA before 
interest, depreciation on a rolling twelve month basis 
compared with the forecast, and the dilution of credit 
notes as a percentage of invoices issued.
The Group has entered into various interest rate swaps 
denominated in US dollars and sterling and renewed others 
in Euros to improve certainty over interest charges. This also 
provided the opportunity to adopt hedge accounting where 
previously fluctuations had been experienced associated 
with unrealised market movements.
Note 29 to the ﬁnancial statements provides 
further information.
Anthony Lawrinson
CFO
Leverage
2.8 times
2.8
3.5
4.3
Year-end leverage
*
 is reducing steadily.
Stock
Closing gross stock down 8.2% and levels of older 
stock fell by 35% to £5.2 million.
51.6
55.1
12
10.6
Old stock
Gross stock
Financial review (continued)
*
 Net debt divided by pre-exceptional EBITDA.
12
8.1 11
10
11
10 15 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
Identifying and managing 
risks and uncertainties
Any commercial opportunities 
bring a degree of risk.
Risk management
Category Description of risk
Currency exposure The Group is exposed to currency risk, which impacts in three principal ways:
i.  translation of the results of our overseas businesses, which account for nearly half of the 
Group’s sales and three-quarters of proﬁt before tax: the businesses are seasonal and this 
can mean that fluctuations in periodic results can be exacerbated by exchange movements 
in that period;
ii.  purchase prices are subject to currency fluctuations against the local currency sales price: 
in particular approximately half of the Group’s sales are of items which are bought in or 
manufactured in Asia and are paid for using US dollars or Chinese renminbi; and
iii.  the Group is funded in a mixture of currencies, tailored where possible to match the needs 
of each business and to reduce the effect of currency fluctuations on the Group’s ﬁnancial 
results. However, the main banking facility is denominated in sterling with some balances 
drawn in US dollars: hence should exchange rates move adversely this has implications on 
the available headroom.
Mitigation
The Directors mitigate these risks using a mixture of natural hedges and, where appropriate, 
spot purchases and forward contracts. Translation risks are only hedged selectively.
Inventory obsolescence The Group’s business remains highly seasonal and fashions in some products change from 
year to year. Poor sell-through where the Group carries inventory risk can result in the value 
realised falling below cost.
Mitigation
The Group maintains a blend of business between customer brands and its own brands. 
Purchasing and production decisions are carefully controlled at local level and KPIs including 
inventory turn and ageing are monitored by the Board. Each business aims to minimise its 
inventory holdings relative to economic return and provides appropriately to ensure inventory 
is held at the lower of cost and net realisable value.
Availability of liquidity The Group’s operations are highly seasonal and signiﬁcant flexible working capital funding 
is required during the course of the annual trading cycle. The Group is dependent on the 
continuing support of its bankers for these working capital facilities. A reduction in the 
availability of these facilities would materially impact the Group’s ability to fulﬁl its 
obligations as they fall due.
Mitigation
The Group budgets carefully and cautiously and operates regular forecasting and cash 
monitoring processes against facilities available. Based on budgeted requirements, the 
Group maintains borrowing lines with a range of counterparties and maturities, estimated 
to be sufﬁcient to cover funding requirements. These borrowing lines range from short-term 
facilities of one year to long-term debt of up to 20 years (16 years remaining). Signiﬁcant 
tranches of funding were reﬁnanced in August 2011 for four and ﬁve years respectively.  
See note 20 to the ﬁnancial statements. 16 International Greetings plc Annual report and accounts 2012
Category Description of risk
Supply chain The Group uses a large number of external suppliers, with bought-in goods for resale 
purchased mainly from Asia. Issues with the quality or integrity of supply chain, particularly 
at peak season, could result in contractual penalties or adversely impact the Group’s ability 
to maintain supply to its customers.
Mitigation
The Group manufactures, where expedient to do so, more of its own goods in China and 
other locations throughout the world. Suppliers are carefully selected and their performance 
monitored by our businesses and locally from our sourcing ofﬁce in Hong Kong through 
means such as clear contractual terms of business, robust quality control and on-site visits. 
Alternative routes of supply are maintained wherever possible to assure keen pricing and 
continuity of supply.
Economic climate Given the relatively low value product within our market, with an average retail price of 
less than £2, the Directors believe that aggregate end customer demand remains relatively 
unaffected by the current economic climate. However, while fewer customers have gone into 
administration relative to recent years, risks associated with the current economic circumstances 
remain prominent. These manifest through loss of sales if customers stop trading or we elect 
not to do business with them, pressure to margins, particularly in the more commoditised 
products, and bad debts arising.
Mitigation
The Group maintains tight credit control procedures, regularly reviews credit limits and avoids 
concentrating on any one geographic location or placing over reliance on any one customer. 
The largest single customer accounts for approximately 7% of overall sales. Amounts presented 
in the balance sheet are net of allowances for doubtful receivables, which are made both for 
identiﬁed loss events which evidence a reduction in the recoverability of the cash, and to provide 
against the probability of a number of as yet unidentiﬁed loss events based on the age of 
overdue debts.
Management risk The Group operates subsidiaries and a joint venture in a number of geographical locations 
across four continents with tight margins requiring close attention to detail both in supply 
and sale. A number of our businesses beneﬁt from close local entrepreneurial management 
from skilled management teams particularly in this challenging economic climate. Loss of key 
management personnel could adversely impact the results of one or more of those businesses.
Mitigation
The Group’s activities in Asia are particularly integral to the supply chain for our UK operations. 
The China factory beneﬁts from carefully selected local management but is also monitored 
by the UK management team by way of on-site reviews and regular monitoring of key 
performance indicators. The Group considers succession planning and seeks to develop 
strong teams around key individuals to reduce the impact of potential loss.
Operational disruption The Group operates four major factories plus several trading sites across the world including 
China, UK, USA, Australia and mainland Europe. The Group’s business is dependent on the 
ongoing operation of these facilities, particularly at peak season. A signiﬁcant operational 
disruption could adversely affect its ability to make and supply products to customers 
on a timely basis.
Mitigation
The Group has implemented policies and procedures to efﬁciently and safely manage its 
operations and to maintain continuity of supply. The factories operate to quality standards 
and are subject to regular customer, internal, health, safety and environmental audits. 
The Group insures against a range of known operational risks and maintains an actively 
managed programme with its insurers and advisors to manage both operational risks 
and insurance premiums.
Risk management (continued) 17 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
Board of Directors
From left to right: Elaine Bond, Anders Hedlund, John Charlton, Anthony Lawrinson, Paul Fineman.
John Charlton
Non-Executive Chairman
John joined the Board in April 2010 
and was appointed Chairman of the 
Board on 7 September 2011. John 
chairs the Remuneration Committee 
and is a member of the Audit Committee. 
John is also Chairman of Amscan UK 
and Chairman of South Africa Greetings 
Corporation (PTY) Ltd. He was previously 
Senior Vice President International of 
American Greetings Corporation and 
Chief Executive of UK Greetings Ltd.
Paul Fineman
Chief Executive Ofﬁcer
Paul joined the Board in May 2005 
as Chief Executive Ofﬁcer of Anker 
International PLC. He was appointed 
Group Managing Director in January 
2008 and then appointed Group CEO 
in January 2009.
Anders Hedlund
Founder and Non-Executive 
Deputy Chairman
Anders founded the Group in 1979 
and was joint Chief Executive Ofﬁcer 
of International Greetings until 
December 2007, when he was appointed 
Non-Executive Deputy Chairman.
Elaine Bond
Non-Executive Director
Elaine joined the Board as  
a Non-Executive Director on 
31 January 2012. Elaine is a 
member of the Remuneration 
Committee and the Audit Committee. 
She is a Non-Executive Director of 
Yorkshire Ambulance Service and 
was previously Group Operations 
Director of UK Greetings Ltd, the UK 
subsidiary of American Greetings.
Anthony Lawrinson
Chief Financial Ofﬁcer 
and Company Secretary
Anthony joined the Board in 
October 2011 as Chief Financial Ofﬁcer 
and Company Secretary. Anthony’s 
former roles include Group Finance 
Director of Reliance Security Group, 
Chief Financial Ofﬁcer at O2 Airwave 
and Group Treasurer at O2 PLC & 
Hickson International PLC. Anthony 
is a member of the ICAEW and the 
Association of Corporate Treasurers.
Phil Dutton
Non-Executive Director
Phil Dutton joined the Board on 
24 May 2012. Phil’s former roles 
include Group Finance Director of 
Punch Taverns, and Finance Director 
of Matalan. He is Chairman of the 
Audit Committee and a member 
of the Remuneration Committee.
Financial and nominated adviser 
and joint broker
Cenkos Securities Plc
6, 7, 8, Tokenhouse Yard 
London EC2R 7AS
Joint broker
Arden Partners Plc
125 Old Broad Street 
London EC2N 1AR
Auditors
Ernst & Young LLP
400 Capability Green 
Luton LU1 3LU
Registered ofﬁce
Belgrave House 
Hatﬁeld Business Park 
Frobisher Way 
Hatﬁeld 
Herts AL10 9TQ
Share registrar
Capita Registrars
The Registry 
34 Beckenham Road 
Beckenham 
Kent BR3 4TU
Advisers
Tel UK: 0871 664 0300 
(Calls cost 10p per minute plus network 
extras. Lines are open from 8.30am to 
5.30pm, Monday to Friday.) 
Tel Overseas: +44 (0)20 8639 3399
Email:  shareholder.services@
capitaregistrars.com 18 International Greetings plc Annual report and accounts 2012
Corporate governance statement
Corporate governance
The UK Corporate Governance Code (formerly the Combined Code) sets out standards of good practice in relation to 
Board leadership and effectiveness, remuneration, accountability and relations with shareholders. It is mandatory for 
fully listed companies. Whilst there is no obligation for AIM listed companies to comply with this code, the Directors 
endorse the principles of effective corporate governance and are committed to maintaining the highest standards 
of ethics, integrity and professional competence. The Directors do not consider full compliance with the Code is appropriate 
for the Group at this stage of its development but will keep the matter under review and continue to develop procedures 
as the Group grows.
Board of Directors
The principal duty of the Board is to represent and protect the interests of the Company’s shareholders by ensuring 
that the Company is well-managed and operated in a way that is in the interests of all shareholders. The Board is 
responsible for oversight of the formulation and implementation of the strategy of the Company and also for oversight 
of the Company’s operations. 
Division of responsibilities
There is a distinct and deﬁned division of responsibilities between the Chairman and the Chief Executive Ofﬁcer (CEO). 
The Chairman is primarily responsible for the effective working of the Board and the CEO for the operational management 
of the business and for the implementation of the agreed strategy.
Composition of the Board
During the accounting period, there were a number of changes to the Board. Charles Uwakaneme and Keith James 
both retired at the AGM on 7 September 2011 and John Charlton was elected Chairman as successor to Keith.
Martin Hornung and Sheryl Tye both resigned from the Board subsequent to the AGM and Anthony Lawrinson was 
appointed to the Board as Chief Financial Ofﬁcer (CFO) on 3 October 2011. 
Dr Elaine Bond was appointed to the Board as a Non-Executive Director with effect from 31 January 2012. Phil Dutton 
was also appointed as a Non-Executive Director on 24 May 2012 subsequent to the year end and replaces Chris Howell 
as Chair of the Audit Committee after Chris stepped down at the end of March 2012. 
Anders Hedlund also holds the position of Non-Executive Director on the Board. Anders is presumed not independent 
because, as founder, he has served on the Board since the Company’s inception, he holds signiﬁcant interests in the 
shareholding of the Company and also fulﬁls a consultancy role within one of the Group’s businesses.
As at the date of this report, all of the other Non-Executive Directors are considered independent under the UK Corporate 
Governance Code.
Role of Non-Executive Directors
The Company’s Non-Executive Directors provide input to the business by contributing to the oversight function of the 
Board and to the development of the Company’s strategy. Non-Executive Directors are required to be satisﬁed that 
the ﬁnancial information is accurate and that internal control procedures governing risk management are effective 
and appropriate.
Board process and information
The Board met nine times during the year, including an extended review of 2012/13 budgets with senior management 
over three days. The Board aims to meet at least six times a year for formal Board meetings and a further ﬁve times in 
between for informal business reviews, to review budgets and to focus on strategy. Dialogue occurs regularly between 
Directors outside of scheduled meetings.
Meeting agendas include review and approval of minutes recorded, matters arising, a review of material operational 
matters relating to our businesses and other special items for discussion or consideration. Board materials are usually 
circulated at least three business days in advance to allow Directors adequate time to prepare. 
The Board receives operational and ﬁnancial information and reports from the CEO/CFO to assist in monitoring 
and assessing the ongoing performance of the business on a monthly basis. 19 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
Accountability and audit
All Directors have accepted a duty of care and accountability to act in the interests of the Company. 
The Group Audit Committee oversees how the Board monitors risk and reviews the adequacy of the risk 
management framework. During the year the Audit Committee was chaired by C Howell. K James, J Charlton 
and E Bond (Non-Executive Directors) were members during their periods of tenure. 
The Committee meets as required during the year and at least twice with the Group’s external auditors. Its role is to 
review the interim and ﬁnal ﬁnancial statements for approval by the Board, to ensure that operational and ﬁnancial 
controls are functioning properly, and to provide the forum through which the Group’s external auditors report to 
the Board.
Risk management
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management 
framework. The Group’s risk management systems, policies and procedures are established to identify and analyse 
the risks faced by the Group to set appropriate risk limits and controls, and to monitor the risks and adherence to 
limits. Such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, 
and can only provide a reasonable and not absolute assurance against material misstatement or loss. Risk management 
processes are reviewed regularly by the Audit Committee to reflect changes in market conditions and the Group’s 
activities. The Board’s oversight covers all controls, including ﬁnancial, operational and compliance controls and 
general risk management.
It is based principally on reviewing reports from management to consider whether signiﬁcant risks are identiﬁed, 
evaluated, managed and controlled and whether any signiﬁcant weaknesses are promptly remedied and indicate 
the need for more extensive monitoring. 20 International Greetings plc Annual report and accounts 2012
Directors’ report
The Directors present their annual report and the audited ﬁnancial statements for the year ended 31 March 2012.
Principal activities
The principal activity of the Group is the design, manufacture and distribution of gift packaging and greetings, 
stationery and creative play products.
The subsidiaries and associated undertakings principally affecting the proﬁts or net assets of the Group in the year 
are listed in note 4 to the Company ﬁnancial statements.
Business review
Full details of the results for the year are set out in the attached ﬁnancial statements.
A review of the performance of the business during the year and an indication of its future developments can be 
found in the Chairman’s Statement on page 6 and Chief Executive Ofﬁcer’s Review on page 8.
A summary of the ﬁnancial impact of major events during the year and the ﬁnancial position at 31 March 2012 can 
be found in the Financial Review on pages 11 to 14. Information about the use of ﬁnancial instruments by the Company 
and its subsidiaries is given in note 29 to the ﬁnancial statements.
Dividends
No interim dividend was paid (2011: £Nil). The Directors do not recommend a ﬁnal dividend (2011: £Nil).
Capital structure
Details of the issued share capital, together with details of the movements in the Company’s issued share capital 
during the year are shown in note 25. The Company has one class of ordinary shares which carry no right to ﬁxed 
income. Each share carries the right to one vote at general meetings of the Company. There are no speciﬁc restrictions 
on the size of a holding nor on the transfer of shares, which are both governed by the general provisions of the 
Articles of Association and prevailing legislation.
Details on share-based payments are set out in note 28 to the ﬁnancial statements and the Directors’ Remuneration 
Report. No person has any special rights or control over the Company’s share capital and all issued shares are fully paid.
Directors and Directors’ interests
The Directors who held ofﬁce during the year were as follows:
E Bond (appointed 31 January 2012)
J Charlton
P Fineman
S A Hedlund
M Hornung (resigned 14 December 2011)
C Howell (resigned 31 March 2012)
K James (resigned 7 September 2011)
A Lawrinson (appointed 3 October 2011)
S Tye (resigned 30 September 2011)
C Uwakaneme (resigned 7 September 2011)
Subsequent to the year end, Phil Dutton was appointed on 24 May 2012 as a Non-Executive Director and Chairman 
of the Audit Committee.
In accordance with the Company’s Articles of Association, P Fineman, A Lawrinson, E Bond and P Dutton will stand 
for election at the forthcoming Annual General Meeting.
Directors’ report 21 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
Directors and Directors’ interests continued
The Directors who held ofﬁce during the year had the following direct interests in the ordinary shares of the Company:
Interest at end of year
*
Interest at beginning of year
**
 Ordinary shares Options Ordinary shares Options
E Bond ——— —
J Charlton
(a)
———— 
P Fineman
(b)
2,188,534 2,265,000 2,188,534 2,265,000 
S A Hedlund
(c)
448 — 448 —
M Hornung
(d)
315,019 650,000 315,019 650,000
C Howell 105,000 — 105,000 —
K James 50,562 — 50,562 —
A Lawrinson ————
S Tye 42,000 300,000 42,000 300,000 
C Uwakaneme 40,000 250,000 40,000 250,000 
*
 Or date of resignation.
**
 Or date of appointment, if later.
In addition to the above holdings:
(a) 57,500 (2011: 57,500) shares are held by the wife of J Charlton.
(b) P Fineman owns a non-beneﬁcial interest in 1,025,708 (2011: 1,025,708) ordinary shares of 5p each.
(c)  20,310,400 (2011: 20,310,400) and 2,819,800 (2011: 2,819,800) ordinary shares of 5p each are respectively registered in the names of AC Artistic 
Limited and Malios Limited, companies incorporated in the British Virgin Islands, and 500,000 (2011: 500,000) ordinary shares of 5p each are 
registered in the name of Artistic AG, a company incorporated in Switzerland, and all are under the ultimate control of S A Hedlund.
(d) 184,557 (2011: 184,557) ordinary shares of 5p each were held by M Hornung’s pension fund.
Details of Directors’ share options are provided in the Directors’ Remuneration Report on pages 24 to 26.
As noted in the Remuneration Report on page 24, following their resignation, S T ye and M Hornung exercised their options.
The following Directors have purchased shares between 31 March 2012 and the date of this annual report:
Shares Date of purchase Price
A Lawrinson 35,000 3 April 2012 49.0p
E Bond 5,000 10 April 2012 51.5p
E Bond 5,000 11 April 2012 53.0p
J Charlton 5,000 13 April 2011 53.0p
Employees
The Group recognises the beneﬁts of keeping employees informed on matters affecting them as employees and on the 
various factors affecting the performance of the Group. This is achieved through employee brieﬁngs that are held in 
most businesses at least twice a year and regular team brieﬁngs.
The Group conforms to current employment laws on the employment of disabled persons and, where we are informed 
of any employee disability, management makes all reasonable efforts to accommodate that employee’s requirements.
In order to recognise the efforts of UK employees the Group operates an All Employee Share Option Plan (AESOP) but 
due to the need to drive down debt, no shares have been purchased in either this or the previous year. Due to the 
restriction on the number of shares available for employee option schemes, given the number of employee options 
in issue and exercised over the previous ten years, no further allotments are available. Due to UK tax legislation it 
is not possible to offer this scheme to employees working outside the UK. 22 International Greetings plc Annual report and accounts 2012
Directors’ report (continued)
Health and safety
The Group is committed to maintaining high standards of health and safety in every area of the business. 
It is the aim of the Group to exceed the requirements of health and safety legislation and we have established a Group 
Board level health and safety co-ordinator to ensure continuous improvement of health and safety across the Group.
Creditor payment policy
It is the Group’s policy to settle terms of payment with suppliers when agreeing the terms of each transaction, ensure 
that suppliers are made aware of the terms of payment and to settle supplier accounts in accordance with their individual 
terms of business. The number of days’ purchases outstanding at the year end in respect of the Company were equivalent 
to 42 (2011: 60), based on the average daily amount invoiced by suppliers during the year.
Political and charitable contributions
The Group made no charitable or political contributions in either year.
Risk management
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management 
framework. The Group’s risk management systems, policies and procedures are established to identify and analyse 
the risks faced by the Group to set appropriate risk limits and controls, and to monitor the risks and adherence to 
limits. Such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, 
and can only provide a reasonable and not absolute assurance against material misstatement or loss. Risk management 
processes are reviewed regularly by the Audit Committee to reflect changes in market conditions and the Group’s 
activities. The Board’s oversight covers all controls, including ﬁnancial, operational and compliance controls and 
general risk management. For full details see pages 15 to 16.
Corporate governance
For full details see pages 18 to 19.
Going concern
The Group’s business activities, together with the factors likely to affect its future development, its performance 
and position, are set out in the Operational Review. The ﬁnancial position of the Group, its cash flows, liquidity 
position, and its management of both working capital and capital expenditure are set out in the Finance Review. 
Details of the bank loans and borrowings are given in note 20 to the ﬁnancial statements and liquidity risks are 
given in note 29 to the ﬁnancial statements.
The Group relies on its banks for ﬁnancial support and is conﬁdent that the facilities that are in place are sufﬁcient 
to meet its needs for the foreseeable future (see note 1 to the ﬁnancial statements). Accordingly the Directors continue 
to adopt the going concern basis in preparing the ﬁnancial statements.
Purchase of own shares
The Directors are authorised to make market purchases of the Company’s own shares under an authority granted at the 
last Annual General Meeting. The Directors will seek renewal of this authority at the forthcoming Annual General Meeting. 
During the year the Company did not buy back any of its shares. If passed, the resolution would give the Company 
authority to purchase in the market up to 5,540,663 ordinary shares (representing approximately 10% of the Company’s 
issued share capital).
Any shares purchased under this authority would either be treated as cancelled (and the number of shares in issue 
reduced accordingly) or held in treasury , available for re-sale by the Company or transferred to an employees’ share scheme.
This general authority, if approved, would expire on the date of the Company’s 2013 Annual General Meeting or , if earlier , 
15 months from the date the resolution is passed. The Directors presently intend that a resolution to renew this authority 
will be proposed at next year’s Annual General Meeting and at each succeeding Annual General Meeting.
Treasury policy
Details of our loans and borrowings and capital management can be found in notes 20 and 29 to the ﬁnancial statements. 23 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
Auditors
The Directors who held ofﬁce at the date of approval of this annual report conﬁrm that, so far as they are each aware, 
there is no relevant audit information of which the Company’s auditors are unaware and, each Director has taken all 
the steps that ought to have been taken as a Director to make himself aware of any relevant audit information and to 
establish that the Company’s auditors are aware of that information. This conﬁrmation is given and should be interpreted 
in accordance with the provisions of Section 418 of the Companies Act 2006.
In accordance with Section 489 of the Companies Act 2006, a resolution for the re-appointment of Ernst and Young LLP 
as auditors of the Company is to be proposed at the forthcoming Annual General Meeting.
By order of the Board
A Lawrinson Belgrave House
Director Frobisher Way
27 June 2012 Hatﬁeld
  Herts AL10 9TQ
  Company number 1401155 24 International Greetings plc Annual report and accounts 2012
Directors’ remuneration report
Remuneration Committee
The Remuneration Committee was established by the Board and operates under terms of reference agreed by the 
Board on 29 September 2008.
The Remuneration Committee consists of J Charlton (Chairman), P Dutton (Non-Executive Director) and E Bond 
(Non-Executive Director). Those who served on the Committee during the year were C Howell and K James.
The Committee meets as required. The Committee determines the service contract terms, the remuneration and beneﬁts, 
including bonuses, of the Executive Directors and senior management. It is also responsible for granting long-term 
incentive arrangements.
Remuneration policy
The Group’s remuneration policy is to ensure that the remuneration of Executive Directors is sufﬁciently competitive 
to enable the Group to retain and motivate existing Directors and attract high quality performers in the future. The Group 
aims to incentivise and reward its Executive Directors in a way that is consistent with the Group’s commercial objectives 
and to align the interests of the Directors with those of the shareholders. To achieve this, the Executive Directors’ total 
remuneration comprises both ﬁxed remuneration and variable reward, the latter reflecting Company performance. 
The main elements of remuneration for Executive Directors are set out below. Only the basic salary is pensionable.
The Group’s remuneration policy in respect of Non-Executive Directors is to pay annual fees which reflect the 
responsibilities and duties placed upon them, whilst also having regard to market practice.
The remuneration of the Non-Executive Directors is set by the Board.
Service contracts
The Executive Directors have service contracts which can be terminated by either side on no greater than one year’s 
notice. Non-Executive Directors do not have service contracts and their appointments may be terminated without 
compensation at any time. All Non-Executive Directors have letters of appointment and their appointment and 
subsequent re-appointment is subject to approval by shareholders.
Bonuses
Bonus objectives for Executive Directors and senior management during the last year were based on Group proﬁt 
achievement, as long as personal performance is at the level required. The level of the bonuses is approved by the 
Remuneration Committee who retain discretion over the level of payout depending on the quality of the ﬁnancial 
performance in achieving the result. The bonus scheme for the coming year for Executive Directors and other senior 
management includes objectives relating to both proﬁt and net debt.
Executive share options
No options were exercised by Directors in their time in ofﬁce, during the year or prior year.
In September 2008, the Board approved an HMRC approved employee share options scheme to assist in the motivation 
of Executive Directors and senior managers. Some Directors and managers received shares that were in addition to the 
HMRC approved amounts (which was 214,285 options each) and these are denoted as “unapproved”.
Executive share awards were awarded at the prevailing market rate on the date of the grant. Options are normally 
exercisable between three and ten years after grant and upon the achievement of stated performance criteria.
The ﬁrst options issued in December 2008 were not subject to performance criteria (other than continued employment), 
except for unapproved options issued to Executive Directors. Holders of options of the previous share option scheme 
had already met their performance criteria, but had waived their options. These options may be exercised between 
17 December 2011 and 17 December 2018.
The only Director currently holding share options is P Fineman who holds 1,052,556 Company share options. The exercise 
price of these options is 14p and they may be exercised between 17 December 2011 and 17 December 2018. 25 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
Executive share options continued
In addition to options granted by the Company, the Hedlund family conﬁrmed on 17 December 2008 that it had agreed 
to grant P Fineman an option over 1,212,444 shares held by AC Artistic Ltd, a company under the control of the Hedlund 
family. The exercise price of these options is 14p and may be exercised between 17 December 2011 and 17 December 2018. 
Performance conditions relating to these options have been met.
There have been no grants or lapses during the year.
Following her resignation, S Tye exercised all 300,000 options on 30 March 2012. M Hornung exercised all his share 
options into two tranches: 200,000 on 4 April 2012 and 450,000 on 11 June 2012.
At his resignation, C Uwakaneme held 250,000 options to be exercised before 31 August 2012.
The mid-market price of the Company’s shares on 31 March 2012 was 48.25p per share; the highest and lowest mid-market 
prices of the Company’s shares during the year were 82.0p and 47.5p respectively.
Directors’ remuneration
The summary of Directors’ remuneration is as follows:
Aggregate for all Directors Highest paid Director
2012
£000
2011
£000
2012
£000
2011
£000
Remuneration 1,054 1,181 350 316
Compensation for loss of ofﬁce 558 — — —
Pension contribution 173 90 — 9
Total remuneration 1,785 1,271 350 325 
The remuneration of the Directors by individual is as follows:
Salary/fees Bonus Beneﬁts
*
Compensation
for loss of
ofﬁce
Subtotal
2012
Pension
2012
Total
2012
Executive Directors 
P Fineman 299,500 37,500 12,854 — 349,854 — 349,854
M Hornung 88,739 — 108,819 204,459 402,017 26,404 428,421 
A Lawrinson 86,428 — 935 — 87,363 19,500 106,863
S Tye 83,125 22,500 802 170,700 277,127 67,768 344,895 
C Uwakaname 70,833 26,250 3,569 182,500 283,152 59,417 342,569
Total Executive 628,625 86,250 126,979 557,659 1,399,513 173,089 1,572,602
Non-Executive Directors
E Bond 5,000 — — — 5,000 — 5,000
J Charlton 52,654 — 1,781 — 54,435 — 54,435
A Hedlund 85,000 — 2,717 — 87,717 — 87,715
C Howell 30,000 — 2,085 — 32,085 — 32,085
K James 30,513 — 2,672 — 33,185 — 33,185
Total Non-Executive 203,167— 9,255 — 212,422— 212,422
Total Directors 831,792 86,250 136,234 557,659 1,611,935 173,089 1,785,024
Included in the pension contributions of the following Directors are amounts relating to compensation for loss 
of ofﬁce for S Tye of £52, 531, M Hornung of £21,941 and C Uwakaname of £46,165. 26 International Greetings plc Annual report and accounts 2012
Directors’ remuneration continued
The following Directors were appointed/resigned during the year: 
E Bond (appointed 31 January 2012)
M Hornung (resigned on 14 December 2011)
C Howell (resigned on 31 March 2012)
K James (resigned on 7 September 2011)
A Lawrinson (appointed on 3rd October 2011)
S Tye (resigned on 30 September 2011)
C Uwakaname (resigned on 7 September 2011)
There were no gains on share options by Directors during their term of ofﬁce.
Salary/fees Bonus Beneﬁts
*
Subtotal
2011
Pension
2011
Total
2011
Executive Directors
P Fineman 286,534 — 15,701 302,235 — 302,235
M Hornung 189,198 — 126,495 315,693 8,925 324,618
S Tye 150,500 22,500 625 173,625 27,768 201,393
C Uwakaname 163,942 — 7,822 171,764 53,620 225,384
Total Executive 790,174 22,500 150,643 963,317 90,313 1,053,630
Non-Executive Directors 
J Charlton 27,500 — — 27,500 — 27,500 
K James 70,000 — 2,084 72,084 — 72,084 
A Hedlund 85,000 — 1,501 86,501 — 86,501 
C Howell 30,000 — 1,314 31,314 — 31,314 
Total Non-Executive 212,500 — 4,899217,399 — 217,399 
Total Directors 1,002,674 22,500 155,542 1,180,716 90,313 1,271,029 
*
 The beneﬁts relate primarily to private health beneﬁts and for M Hornung to overseas housing beneﬁts.
The highest paid Director is P Fineman (2011: M Hornung).
The Group operated a Group personal pension plan to which the Group contributed for four Directors (2011: three). 
The Group also provides death in service life assurance to the value of between two and four times pensionable salary.
John Charlton
Chairman of the Remuneration Committee
Directors’ remuneration report (continued) 27 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
Directors’ responsibilities
The Directors are responsible for preparing the annual report and the Group ﬁnancial statements in accordance 
with applicable United Kingdom law and those International Financial Reporting Standards (IFRS) as adopted 
by the European Union (EU).
Under Company law the Directors must not approve the Group ﬁnancial statements unless they are satisﬁed 
that they present fairly the ﬁnancial position, ﬁnancial performance and cash flows of the Group for that period. 
In preparing the Group ﬁnancial statements the Directors are required to:
 select suitable accounting policies in accordance with IAS 8: Accounting Policies, Changes in Accounting Estimates 
and Errors and then apply them consistently;
 present information, including accounting policies, in a manner that provides relevant, reliable, comparable 
and understandable information;
 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 Group’s ﬁnancial 
position and ﬁnancial performance;
 state that the Group has complied with IFRSs, subject to any material departures disclosed and explained in the 
ﬁnancial statements; and
 make judgements and estimates that are reasonable and prudent.
The Directors are responsible for keeping adequate accounting records that are sufﬁcient to show and explain the 
Group’s transactions and disclose with reasonable accuracy at any time the ﬁnancial position of the Group and enable 
them to ensure that the Group ﬁnancial statements comply with the Companies Act 2006. They are also responsible 
for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud 
and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and ﬁnancial information included 
on the Company’s website. 28 International Greetings plc Annual report and accounts 2012
Independent auditors’ report
to the members of International Greetings plc
We have audited the Group ﬁnancial statements of International Greetings plc for the year ended 31 March 2012 which 
comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated 
Statement of Changes in Equity, the Consolidated Balance Sheet and the Consolidated Cash Flow Statement and the 
related notes 1 to 32. The ﬁnancial reporting framework that has been applied in their preparation is applicable law 
and International Financial Reporting Standards (IFRSs) as adopted by the EU.
This report is made solely to the Company’s members, as a body , in accordance with Chapter 3 of Part 16 of the Companies 
Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we 
are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, 
we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, 
for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the Directors’ Responsibilities Statement as set out on page 27 the Directors are responsible 
for the preparation of the Group ﬁnancial statements and for being satisﬁed that they give a true and fair view. 
Our responsibility is to audit and express an opinion on the Group ﬁnancial statements in accordance with applicable 
law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing 
Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the ﬁnancial statements
An audit involves obtaining evidence about the amounts and disclosures in the Annual Report and ﬁnancial statements 
sufﬁcient to give reasonable assurance that the ﬁnancial statements are free from material misstatement, whether 
caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Group’s 
circumstances and have been consistently applied and adequately disclosed; the reasonableness of signiﬁcant accounting 
estimates made by the Directors; and the overall presentation of the ﬁnancial statements. In addition, we read all 
the ﬁnancial and non-ﬁnancial information in the Chairman’s Statement, the Chief Executive’s Operational Review 
and the Financial Review to identify material inconsistencies with the audited ﬁnancial statements. If we become 
aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on ﬁnancial statements
In our opinion the Group ﬁnancial statements:
 give a true and fair view of the state of the Group’s affairs as at 31 March 2012 and of its proﬁt for the year then ended;
 have been properly prepared in accordance with IFRSs as adopted by the EU; and 
 have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the ﬁnancial year for which the Group ﬁnancial 
statements are prepared is consistent with the Group ﬁnancial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report 
to you if, in our opinion:
 certain disclosures of Directors’ remuneration speciﬁed by law are not made; or
 we have not received all the information and explanations we require for our audit.
Other matter
We have reported separately on the Parent Company ﬁnancial statements of International Greetings plc for the year 
ended 31 March 2012.
Andy Clewer (Senior Statutory Auditor)
for and on behalf of Ernst &Young LLP , Statutory Auditor
Luton
29 June 2012 29 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
Consolidated income statement
year ended 31 March 2012
Notes
2012
Before
exceptional
items
£000
2012
Exceptional
items
(note 10)
£000
2012
Total
£000
2011
Before
exceptional
items
£000
2011
Exceptional
items
(note 10)
£000
2011
Total
£000
Continuing operations
Revenue 4220,755 —220,755 216,857 —216,857 
Cost of sales (178,190) — (178,190) (179,108) (27) (179,135)
Gross proﬁt 42,565 — 42,565 37,749 (27) 37,722
19.3% 19.3% 17.4% 17.4%
Selling expenses (13,003) — (13,003) (12,698) (401) (13,099)
Administration expenses (19,580) (3,635) (23,215) (18,021) (472) (18,493)
Other operating income 7 678 — 678 1,019 — 1,019 
Proﬁt on disposal of plant 
and equipment 63 — 63 —— —
(Loss)/proﬁt on sales of property, 
plant and equipment —(283) (283) 33 — 33
Operating proﬁt/(loss) 5 10,723 (3,918) 6,805 8,082 (900) 7,182 
Finance expenses 8 (3,635) — (3,635) (2,917) — (2,917)
Proﬁt/(loss) before tax 7,088 (3,918) 3,170 5,165 (900) 4,265
Income tax (charge)/credit 9 (1,948) 195 (1,753) 426 267 693 
Proﬁt/(loss) from continuing 
operations 5,140 (3,723) 1,417 5,591 (633) 4,958 
Loss from discontinued operations 
(net of tax) 11 —— — (100) — (100)
Proﬁt/(loss) for the period 5,140 (3,723) 1,417 5,491 (633) 4,858
Attributable to:
Owners of the Parent Company 177 4,010
Non-controlling interests 1,240 848
Earnings per ordinary share
Diluted Basic Diluted Basic
Adjusted earnings per share 
excluding exceptional items and 
discontinued operations 26 6.7p 7.2p 8.2p 8.9p
Loss per share on exceptional items 26 (6.4p) (6.9p) (1.1p) (1.2p)
Earnings per share from 
continuing operations 26 0.3p 0.3p 7.1p 7.7p
Loss per share on 
discontinued operations 26 —— (0.2p) (0.2p)
Earnings per share 26 0.3p 0.3p 6.9p 7.5p 30 International Greetings plc Annual report and accounts 2012
2012
£000
2011
£000
Proﬁt for the year 1,417 4,858 
Other comprehensive income:
Recycling translation reserves on closure of subsidiary — (97)
Exchange difference on translation of foreign operations (88) 529 
Net loss on cash flow hedges (322) (124)
Other comprehensive income for period, net of tax (410) 308 
Total comprehensive income for the period, net of tax 1,007 5,166 
Attributable to:
Owners of the Parent Company (475) 4,300 
Non-controlling interests 1,482 866 
 1,007 5,166
Consolidated statement of comprehensive income
year ended 31 March 2012 31 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
Consolidated statement of changes in equity
year ended 31 March 2012
Share
capital
£000
Share
premium
and capital
redemption
reserve
£000
Merger
reserves
£000
Hedging
reserves
£000
Translation
reserve
£000
Retained
earnings
£000
Shareholder
equity
£000
Non-
controlling
interest
£000
Total
£000
At 1 April 2010 2,608 4,346 16,216 — 362 19,071 42,603 3,354 45,957 
Proﬁt for the year — — — — — 4,010 4,010 848 4,858 
Other comprehensive income — — — (124) 414 — 290 18 308 
Total comprehensive income 
for the year — — — (124) 414 4,010 4,300 866 5,166 
Equity-settled  
share-based payment — — — — — 109 109 — 109 
Shares issued 74 — 948 — — — 1,022 — 1,022 
Options exercised 16 40 — — — — 56 — 56 
At 31 March 2011 2,698 4,386 17,164 (124) 776 23,190 48,090 4,220 52,310
Proﬁt for the year — — — — — 177 177 1,240  1,417 
Other comprehensive income —— — (322) (330) — (652) 242  (410)
Total comprehensive income 
for the year — — — (322) (330) 177 (475) 1,482  1,007 
Equity-settled  
share-based payment — — — — — 43  43 — 43 
Shares issued — ——— —— — — —
Options exercised 52 94 —— —— 146 — 146 
Equity dividends paid — ——— —— — (958) (958)
At 31 March 2012 2,750 4,480 17,164 (446) 446 23,410 47,804 4,744 52,548
Merger reserve
The merger reserve comprises premium on shares issued in relation to business combinations. In the prior year the 
additions are in relation to the ﬁnal deferred consideration for the Glitterwrap business.
Capital redemption reserve
The capital redemption reserve comprises amounts transferred from retained earnings in relation to the redemption 
of preference shares. For ease of presentation, the amount of £1.34 million relating to the capital redemption reserve 
has been included within the column of share premium and capital redemption reserve in the balances at both the 
beginning and end of each year, with no movements.
Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging 
instruments related to hedged transactions that have not yet occurred.
Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the ﬁnancial statements 
of foreign operations.
Shareholders’ equity
Shareholders’ equity represents total equity attributable to owners of the Parent Company. 32 International Greetings plc Annual report and accounts 2012
Notes
As at
31 March
2012
£000
As at
31 March
2011
£000
Non-current assets
Property, plant and equipment 12 31,533 31,518 
Intangible assets 13 32,916 33,385 
Deferred tax assets 15 4,640 4,616 
Total non-current assets 69,089 69,519
Current assets
Inventory 16 42,628 45,582 
Assets classiﬁed as held for sale 17 — 497 
Trade and other receivables 18 20,942 21,494 
Cash and cash equivalents 19 3,168 1,885 
Total current assets 66,738 69,458 
Total assets 135,827 138,977
Equity
Share capital 25 2,750 2,698 
Share premium 3,140 3,046
Reserves 18,504 19,156 
Retained earnings 23,410 23,190
Equity attributable to owners of the Parent Company 47,804 48,090
Non-controlling interests 4,744 4,220
Total equity 52,548 52,310
Non-current liabilities
Loans and borrowings 20 33,622 8,377 
Deferred income 21 1,879 2,429 
Provisions 22 1,003 1,847 
Other ﬁnancial liabilities 23 447 375 
Total non-current liabilities 36,951 13,028
Current liabilities
Bank overdraft 19 1,945 3,620 
Loans and borrowings 20 9,329 34,312 
Deferred income 21 550 550 
Provisions 22 317 —
Income tax payable 855 162 
Trade and other payables 24 23,133 25,353 
Other ﬁnancial liabilities 23 10,199 9,642 
Total current liabilities 46,328 73,639
Total liabilities 83,279 86,667
Total equity and liabilities 135,827 138,977
These ﬁnancial statements were approved by the Board of Directors on 27 June 2012 and were signed on its behalf by:
P Fineman A Lawrinson Company number
Director Director 1401155
The notes on pages 34 to 67 form part of the ﬁnancial statements.
Consolidated balance sheet
as at 31 March 2012 33 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
Notes
2012
£000
2011
£000
Cash flows from operating activities
Proﬁt for the year 1,417 4,858
Adjustments for:
Depreciation 12 3,753 4,108
Amortisation of intangible assets 13 534 331
Finance expenses – continuing operations 8 3,635 2,917
Finance expenses – discontinued operations 11 — 26
Recycling of translation reserves on closure of subsidiary — (97)
Income tax charge/(credit) – continuing operations 9 1,753 (693)
Loss/(proﬁt) on sales of property, plant and equipment 220 (33)
Loss on external sale of intangible ﬁxed assets 4 —
Proﬁt on disposal of assets held for resale (8) —
Impairments of assets held for resale 17 — 238
Equity-settled share-based payment 28 43 109
Operating proﬁt after adjustments for non-cash items 11,351 11,764
Change in trade and other receivables 224 173
Change in inventory 2,840 (303)
Change in trade and other payables (1,799) (381)
Change in provisions and deferred income (1,102) (518)
Cash generated from operations 11,514 10,735
Tax paid (1,131) (420)
Interest and similar charges paid (3,491) (3,226)
Receipts from sales of property for resale 528 —
Acquisition of property for resale 17 — (780)
Net cash inflow from operating activities 7,420 6,309
Cash flow from investing activities
Proceeds from sale of property, plant and equipment  122 73
Acquisition of intangible assets 13 (399) (521)
Acquisition of property plant and equipment 12 (4,015) (1,900)
Net cash outflow from investing activities (4,292) (2,348)
Cash flows from ﬁnancing activities
Proceeds from issue of share capital 146 56
Repayment of secured borrowings (1,473) (947)
Net repayment of credit facilities (27,785) (3,222)
Payment of ﬁnance lease liabilities (49) (113)
New bank loans raised 30,170 —
Loan arrangement fees (370) —
Payment of deferred consideration (111) —
Dividends paid to non-controlling interests (918) —
Net cash outflow from ﬁnancing activities (390) (4,226)
Net increase in cash and cash equivalents 2,738 (265)
Cash and cash equivalents at beginning of period (1,735) (993)
Effect of exchange rate fluctuations on cash held 220 (477)
Cash and cash equivalents at 31 March 19 1,223 (1,735)
Consolidated cash flow statement
year ended 31 March 2012 34 International Greetings plc Annual report and accounts 2012
1 Accounting policies
International Greetings plc is a public limited company, incorporated and domiciled in England and Wales. The Company’s 
ordinary shares are listed on AIM. 
The Group ﬁnancial statements consolidate those of the Company and its subsidiaries (together referred to as the 
“Group”). The Company ﬁnancial statements present information about the Company as a separate entity and not 
about its Group.
The Group ﬁnancial statements have been prepared and approved by the Directors in accordance with EU adopted 
International Financial Reporting Standards. The Company has elected to prepare its Company ﬁnancial statements 
in accordance with UK GAAP; these are presented on pages 68 to 76. 
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented 
in these Group ﬁnancial statements. 
Judgements made by the Directors in the application of these accounting policies that have signiﬁcant effect on the 
ﬁnancial statements and estimates with a signiﬁcant risk of material adjustment in the next year are discussed in 
the policies below.
Going concern basis
The ﬁnancial statements have been prepared on the going concern basis. Following the restructure of its principal 
banking facilities in July 2011 the Group now shows net current assets of £20.4 million (2011: net current liabilities 
of £4.2 million).
The borrowing requirement of the Group increases steadily over the period from July and peaks in September and 
October , due to the seasonality of the business, as the sales of wrap and crackers are mainly for the Christmas market, 
before then reducing.
As with any company placing reliance on external entities for ﬁnancial support, the Directors acknowledge that there 
can be no certainty that this support will continue although, at the date of approval of this report, they have no reason 
to believe that it will not do so.
After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate 
resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern 
basis of accounting in preparing the ﬁnancial statements. 
Measurement convention
The ﬁnancial statements are prepared on the historical cost basis except that ﬁnancial instruments used for hedging 
are stated at their fair value.
Changes in accounting policies
The accounting policies adopted in the preparation of the ﬁnancial statements are consistent with those followed in the 
preparation of the Group’s annual ﬁnancial statements for the year ended 31 March 2011, except for the adoption of new 
standards and interpretations as of 1 April 2011.
The Group maintains facilities with a range of maturities, counter-parties and currencies to suit its needs. 
These include long-dated facilities against specialised capital assets, medium-term facilities (four to ﬁve years) forming 
the majority and shorter-dated working capital of one to three years. This provides the Group with a sound basis for trading.
The short-term element (overdraft and RCF) of these facilities was renewed on improved terms in May 2012, which will 
slightly lower the blended rate in the forthcoming year and provide signiﬁcant additional headroom.
IAS 24 Related Party Disclosures (Amendment)
The amended standard clariﬁes the deﬁnition of a related party to simplify the identiﬁcation of such relationships 
and to eliminate inconsistencies in its application. This amendment did not have any impact on the ﬁnancial position 
or performance of the Group.
Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or indirectly, 
to govern the ﬁnancial and operating policies of an entity so as to obtain beneﬁts from its activities. In assessing control, 
potential voting rights that are currently exercisable or convertible are taken into account. The ﬁnancial statements 
of subsidiaries are included in the consolidated ﬁnancial statements from the date that control commences until the 
date that control ceases.
Notes to the ﬁnancial statements
year ended 31 March 2012 35 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
1 Accounting policies continued
Foreign currency translation
The consolidated ﬁnancial statements are presented in pounds sterling, which is the Company’s functional currency 
and the Group’s presentational currency.
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. 
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the 
foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in 
the income statement. 
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, 
are translated at foreign exchange rates ruling at the balance sheet date. The revenues and expenses of foreign 
operations are translated at an average rate for the period where this rate approximates to the foreign exchange 
rates ruling at the dates of the transactions. Exchange differences arising from this translation of foreign operations, 
and of related qualifying hedges, are taken directly to the translation reserve. They are released into the income 
statement upon disposal.
Exchange differences arising from a monetary item receivable from or payable to a foreign operation, the settlement 
of which is neither planned nor likely in the foreseeable future, are considered to form part of a net investment in a foreign 
operation and are recognised in other comprehensive income in the translation reserve. The cumulative translation 
differences previously recognised in other comprehensive income (or where the foreign operation is part of a subsidiary, 
the parent’s interest in the cumulative translation differences) are released into the income statement upon disposal 
of the foreign operation or on loss of control of the subsidiary that includes the foreign operation. 
Classiﬁcation of ﬁnancial instruments issued by the Group
Financial instruments issued by the Group are treated as equity (i.e. forming part of shareholders’ funds) only to the 
extent that they meet the following two conditions: 
a)  they include no contractual obligations upon the Group to deliver cash or other ﬁnancial assets or to exchange 
ﬁnancial assets or ﬁnancial liabilities with another party under conditions that are potentially unfavourable to 
the Group; and 
b)  where the instrument will or may be settled in the Company’s own equity instruments, it is either a non-derivative 
that includes no obligation to deliver a variable number of the Company’s own equity instruments or is a derivative 
that will be settled by the Company’s exchanging a ﬁxed amount of cash or other ﬁnancial assets for a ﬁxed number 
of its own equity instruments.
T o the extent that this deﬁnition is not met, the proceeds of issue are classiﬁed as a ﬁnancial liability . Where the instrument 
so classiﬁed takes the legal form of the Company’s own shares, the amounts presented in these ﬁnancial statements 
for called up share capital and share premium exclude amounts in relation to those shares.
Trade and other receivables
Where it is likely to be materially different from the nominal value, trade and other receivables are recognised initially 
at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, 
less any impairment losses.
Trade and other payables
Where it is likely to be materially different from the nominal value, trade and other payables are recognised initially 
at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand 
and form an integral part of the Group’s cash management are included as a component of cash and cash equivalents 
for the purposes of the cash flow statement.
Interest-bearing borrowings
Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to 
initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method.
Derivative ﬁnancial instruments and hedging
Derivative ﬁnancial instruments
Derivative ﬁnancial instruments are recognised at fair value. The gain or loss on re-measurement to fair value 
is recognised immediately in the income statement. However, where derivatives qualify for hedge accounting, 
recognition of any resultant gain or loss depends on the nature of the item being hedged (see overleaf). 36 International Greetings plc Annual report and accounts 2012
1 Accounting policies continued
Derivative ﬁnancial instruments and hedging continued
Cash flow hedges
Where a derivative ﬁnancial instrument is designated as a hedge of the variability in cash flows of a recognised 
asset or liability, or a highly probable forecast transaction, the effective part of any gain or loss on the derivative 
ﬁnancial instrument is recognised as other comprehensive income in the hedging reserve. Any ineffective portion 
of the hedge is recognised immediately in the income statement.
Amounts previously recognised in other comprehensive income are transferred to the income statement in the 
periods when the hedged item affects proﬁt or loss (for instance when the forecast sale that is hedged takes place). 
The gain or loss relating to the effective portion of forward foreign exchange contract hedging export sales is recognised 
in the income statement within “sales”. However , when the forecast transaction that is hedged results in the recognition 
of a non-ﬁnancial asset (for example, inventory), the gains or losses previously recognised in other comprehensive income 
are transferred from other comprehensive income and included in the initial measurement of the cost of the asset. 
The deferred amounts are ultimately recognised in cost of goods sold (in case of inventory).
When a hedging instrument expires or is sold, terminated or exercised, or the entity revokes designation of the hedge 
relationship but the hedged forecast transaction is still expected to occur, the cumulative gain or loss at that point 
remains in other comprehensive income and is recognised in accordance with the above policy when the transaction 
occurs. If the hedged transaction is no longer expected to take place, the cumulative unrealised gain or loss recognised 
in other comprehensive income is recognised in the income statement immediately.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.
Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as 
separate items of property, plant and equipment.
Leases in which the Group assumes substantially all the risks and rewards of ownership of the leased asset are classiﬁed 
as ﬁnance leases. Where land and buildings are held under ﬁnance leases the accounting treatment of the land is 
considered separately from that of the buildings. Leased assets acquired by way of a ﬁnance lease are stated at an 
amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of 
the lease, less accumulated depreciation and impairment losses. Lease payments are accounted for as described below.
Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of each part 
of an item of property, plant and equipment. The estimated useful lives are as follows:
 freehold buildings  25–30 years
 leasehold land and buildings life of lease
 plant and equipment  four–25 years
 ﬁxtures and ﬁttings  three–ﬁve years
 motor vehicles   four years
No depreciation is provided on freehold land.
Included within plant and machinery are assets with a range of depreciation rates. These rates are tailored to the 
nature of the assets to reflect their estimated useful lives.
Depreciation methods, useful lives and residual values are reviewed at each balance sheet date.
Intangible assets and goodwill
Subject to the transitional relief in IFRS 1, all business combinations are accounted for by applying the purchase method. 
Goodwill represents amounts arising on acquisition of subsidiaries. In respect of business acquisitions that have occurred 
since 1 April 2006, goodwill represents the difference between the cost of the acquisition and the fair value of the net 
identiﬁable assets acquired. Identiﬁable intangibles are those which can be sold separately or which arise from legal 
rights regardless of whether those rights are separable.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units 
and is not amortised but is tested annually for impairment. 
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 37 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
1 Accounting policies continued
Intangible assets and goodwill continued
In respect of acquisitions prior to 1 April 2006, goodwill is included on the basis of its deemed cost, which represents 
the amount recorded under UK GAAP which was broadly comparable save that only separable intangibles were recognised 
and goodwill was amortised. Goodwill written off to reserves under UK GAAP prior to 1998 has not been reinstated. 
If the cost of an acquisition is less than the fair value of the Group’s share of the net assets of the subsidiary 
acquired, the difference is recognised directly in the income statement.
Other intangible assets
Expenditure on internally generated goodwill and brands is recognised in the income statement as an expense as incurred.
Other intangible assets that are acquired by the Group are stated at cost less accumulated amortisation and 
impairment losses.
The main classes of intangible assets are computer software and publishing imprints. 
Amortisation
Amortisation is charged to the income statement on a straight-line basis over the estimated useful lives of intangible 
assets unless such lives are indeﬁnite. The estimated useful life of computer software ranges between three and ﬁve 
years. Other intangible assets are amortised from the date they are available for use. The estimated useful lives are 
three to ﬁve years.
Amortisation charges are included under “administrative expenses” in the income statement.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is based on a combination of weighted average 
and the ﬁrst-in ﬁrst-out principle and includes expenditure incurred in acquiring the inventories and bringing them 
to their existing location and condition. In the case of manufactured inventories and work in progress, cost includes 
an appropriate share of overheads based on normal operating capacity.
Impairment
The carrying amounts of the Group’s assets other than inventories and deferred tax assets are reviewed at each 
balance sheet date to determine whether there is any indication of impairment. If any such indication exists, 
the asset’s recoverable amount is estimated.
For goodwill, the recoverable amount is estimated at each balance sheet date.
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds 
its recoverable amount. Impairment losses are recognised in the income statement.
Impairment losses recognised in respect of cash-generating units are allocated ﬁrst to reduce the carrying amount 
of any goodwill allocated to cash-generating units and then to reduce the carrying amount of the other assets in 
the unit on a pro rata basis. A cash-generating unit is the smallest identiﬁable group of assets that generates cash 
inflows that are largely independent of the cash inflows from other assets or groups of assets.
The recoverable amount of the Group’s assets is the greater of their fair value less costs to sell and value in use. 
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount 
rate that reflects current market assessments of the time value of money and the risks speciﬁc to the asset. For an 
asset that does not generate largely independent cash inflows, the recoverable amount is determined for the 
cash-generating unit to which the asset belongs.
An impairment in respect of goodwill is not reversed. In respect of other assets, an impairment is reversed when 
there is an indication that the impairment may no longer exist and there has been a change in the estimates used 
to determine the recoverable amount. An impairment is reversed only to the extent that the asset’s carrying amount 
does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no 
impairment had been recognised. 38 International Greetings plc Annual report and accounts 2012
1 Accounting policies continued
Provisions
A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a 
result of a past event and it is probable that an outflow of economic beneﬁts will be required to settle the obligation. 
A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan 
and announced its main provisions. If the effect is material, provisions are determined by discounting the expected 
future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where 
appropriate, the risks speciﬁc to the liability. Where discounting is used, the increase in the provision due to the 
passage of time is recognised as borrowing costs.
Deferred consideration
Where considered material, the Group calculates deferred consideration by discounting it to its fair value. This fair 
value is used to calculate the total purchase consideration and hence the goodwill ﬁgure. As the discount unwinds 
it is charged as a ﬁnance expense within the income statement and added to the deferred consideration creditor.
Revenue recognition
Revenue represents the amounts, net of discounts, allowances for volume and promotional rebates and other payments 
to customers (excluding value added tax) derived from the provision of goods and services to customers during the year. 
Sales of goods are recognised when a Group entity has despatched products to the customer, legal title has passed 
and the collectability of the related receivable is reasonably assured.
Exceptional items
Exceptional items are those items of ﬁnancial performance which, because of size or incidence, require separate 
disclosure to enable underlying performance to be assessed.
Discontinued operations
A discontinued operation is a component of the Group’s business that represents a separate major line of business 
or geographical area that has been disposed of or is held for sale, or is a subsidiary acquired exclusively with a view 
to resale. Classiﬁcation as discontinued operation occurs upon disposal or when the operation meets the criteria to 
be classiﬁed as held for sale, if earlier.
When an operation is classiﬁed as a discontinued operation, the comparative income statement is represented 
as if the operation had been discontinued from the start of the comparative period.
Government grants
Capital-based government grants are included within other ﬁnancial liabilities in the balance sheet and credited 
to operating proﬁt over the estimated useful economic lives of the assets to which they relate.
Expenses
Operating lease payments
Payments made under operating leases are recognised in the income statement on a straight-line basis over the 
term of the lease. Lease incentives received are recognised in the income statement as an integral part of the total 
lease expense.
Finance lease payments
Minimum lease payments are apportioned between the ﬁnance charge and the reduction of the outstanding liability. 
The ﬁnance charge is allocated to each period during the lease term so as to produce a constant periodic rate of 
interest on the remaining balance of the liability.
Finance income and expenses
Finance expenses comprise interest payable, ﬁnance charges on ﬁnance leases and unwinding of the discount 
on provisions. Finance income comprises interest receivable on funds invested and dividend income.
Interest income and interest payable is recognised in proﬁt or loss as it accrues, using the effective interest method. 
Dividend income is recognised in the income statement on the date the entity’s right to receive payments is established. 
Foreign currency gains and losses are reported on a net basis.
Taxation
Tax on the proﬁt or loss for the year comprises current and deferred tax. Tax is recognised in the income statement 
except to the extent that it relates to items recognised in other comprehensive income or directly in equity, in which 
case it is recognised in other comprehensive income or equity respectively.
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 39 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
1 Accounting policies continued
Taxation continued
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively 
enacted at the balance sheet date and any adjustment to tax payable in respect of previous years.
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for ﬁnancial 
reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided 
for: the initial recognition of goodwill; the initial recognition of assets or liabilities that affect neither accounting nor 
taxable proﬁt other than in a business combination; and differences relating to investments in subsidiaries to the extent 
that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the 
expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted 
or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable proﬁts will be available 
against which the asset can be utilised. 
Dividend distribution
Final dividends to shareholders of International Greetings plc are recognised as a liability in the period that they are 
approved by shareholders.
Employee beneﬁts
Pensions
The Group operates a deﬁned contribution personal pension scheme. The assets of this scheme are held separately 
from those of the Group in an independently administered fund. The pension charge represents contributions payable 
by the Group to the fund.
The Netherlands subsidiary operates an industrial deﬁned beneﬁt fund, based on average wages, that has an agreed 
maximum contribution. The pension fund is a multi-employer fund and there is no contractual or constructive obligation 
for charging the net deﬁned beneﬁt cost of the plan to participating entities other than an agreed maximum contribution 
for the period, that is shared between employer (4/7) and employees (3/7). The Dutch Government is not planning to 
make employers fund any deﬁcits in industrial pension funds; accordingly the Group treats the scheme as a deﬁned 
contribution scheme for disclosure purposes. The Group recognises a cost equal to its contributions payable for the period.
Share-based payment transactions
The cost of equity-settled transactions with employees is measured by reference to the fair value at the date on which 
they are granted and is recognised as an expense over the vesting period, which ends on the date on which the relevant 
employees become fully entitled to the award. Fair value is determined by an external valuer using an appropriate 
pricing model. In valuing equity-settled transactions, no account is taken of any service and performance (vesting 
conditions), other than performance conditions linked to the price of the shares of the Company (market conditions). 
Any other conditions which are required to be met in order for an employee to become fully entitled to an award are 
considered to be non-vesting conditions. Like market performance conditions, non-vesting conditions are taken into 
account in determining the grant date fair value.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon 
a market vesting condition or a non-vesting condition, which are treated as vesting irrespective of whether or not the 
market vesting condition or non-vesting condition is satisﬁed, provided that all other non-market vesting conditions 
are satisﬁed.
At each balance sheet date before vesting, the cumulative expense is calculated, representing the extent to which 
the vesting period has expired and management’s best estimate of the achievement or otherwise of non-market 
vesting conditions and of the number of equity instruments that will ultimately vest or, in the case of an instrument 
subject to a market condition or a non-vesting condition, be treated as vesting as described above. The movement 
in cumulative expense since the previous balance sheet date is recognised in the income statement, with a corresponding 
entry in equity.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes 
a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective 
assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other 
costs that an entity incurs in connection with the borrowing of funds. 40 International Greetings plc Annual report and accounts 2012
1 Accounting policies continued
New standards and interpretations not applied
The following standards and interpretations issued by the IASB have an effective date after the date of these 
ﬁnancial statements:
IFRS 9 Financial Instruments: Classiﬁcation and Measurement
IFRS 9 as issued reflects the ﬁrst phase of the IASB’s work on the replacement of IAS 39 and applies to classiﬁcation 
and measurement of ﬁnancial assets and liabilities as deﬁned in IAS 39. In subsequent phases, the IASB will address 
impairments, hedge accounting and de-recognition. The Group will quantify the effect in conjunction with the other 
phases, when issued, to present a comprehensive picture.
IFRS 10 Consolidated Financial Statements includes a new deﬁnition of control, which is used to determine which 
entities are consolidated, and describes consolidation procedures.
IFRS 11 Joint Arrangements describes the accounting for joint arrangements with joint control; proportionate 
consolidation is not permitted for joint ventures (as newly deﬁned).
IFRS 12 Disclosures of Interests in Other Entities includes all of the disclosure requirements for subsidiaries, joint ventures, 
associates and “structured entities”.
IFRS 13 Fair Value Measurement provides guidance on how to measure fair value but does not change when fair value 
is required or permitted under IFRS.
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
The interpretation clariﬁes that equity instruments issued to a creditor to extinguish a ﬁnancial liability qualify 
as consideration paid. The equity instruments issued are measured at their fair value of the liability extinguished. 
Any gain or loss is recognised immediately in proﬁt or loss. The adoption of this interpretation will have no effect 
on the ﬁnancial statements of the Group.
Other new standards
Management continually reviews the impact of newly published standards and amendments and considers, where 
applicable, disclosure of their impact on the Group.
The following standards, interpretations and amendments have been issued by the IASB and IFRIC (but in some cases 
have not yet been adopted by the EU), none of which are anticipated to signiﬁcantly impact the Group’s results or assets 
and liabilities and are not expected to require signiﬁcant disclosure. They become effective after the current year (subject to 
having been endorsed for use in the EU via the EU endorsement mechanism) and have not been early adopted by the 
Group and Company.
International Financial Reporting Standards (IFRS) Effective date
To be adopted by the
Group and Company
during years
commencing
IFRS 7 Disclosures – Transfers of Financial Assets (Amendment) 01.07.2011 01.04.2012
IFRS 9 Financial Instruments: Classiﬁcation and Measurement
*
01.01.2015 01.04.2015
IFRS 10 Consolidated Financial Statements
*
01.01.2013 01.04.2013
IFRS 11 Joint Arrangements
*
01.01.2013 01.04.2013
IFRS 12 Disclosures of Interests in Other Entities
*
01.01.2013 01.04.2013
IFRS 13 Fair Value Measurements
*
01.07.2012 01.04.2013
IAS 1 Presentation of Items of Other Comprehensive Income 01.01.2013 01.04.2013
IAS 19 Employee Beneﬁts 01.01.2013 01.04.2013
IAS 27 Separate Financial Statements 01.01.2013 01.04.2013
IAS 28 Investments in Associates and Joint Ventures
*
01.01.2013 01.04.2013
IAS 12 Deferred tax: Recovery of Underlying Assets
*
01.01.2012 01.04.2012
IFRS 1 Severe Hyperinflation and Removal of Fixed Dates for First-Time Adopters
*
01.07.2011 01.04.2012
IFRS 1 Government Loans
*
01.01.2013 01.04.2013
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
*
01.01.2013 01.04.2013
IFRS 7 Disclosures – Offsetting Financial Assets and Financial Liabilities
*
01.01.2013 01.04.2013
IAS 32 Offsetting Financial Assets and Financial Liabilities
*
01.01.2014 01.04.2014
Improvements to IFRSs 2012
*
01.01.2013 01.04.2013
*
 Not yet endorsed by the EU.
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 41 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
2 Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, which are described in note 1, the Directors are required to 
make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not 
readily apparent from other sources. The estimates and associated assumptions are based on historical experience 
and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
Actual results may differ from these estimates. 
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates 
are recognised in the period in which the estimate is revised if the revision only affects that period or in the period 
of revision and future periods if the revision affects both current and future periods.
In addition to the forward operating proﬁt and cash flow projections, the estimates and assumptions that have had 
a signiﬁcant bearing on the ﬁnancial statements in the current year or could have a signiﬁcant risk of causing a material 
adjustment to the carrying amounts of assets and liabilities within the next ﬁnancial year are discussed below:
Critical judgements in applying the Group’s accounting policies
The following are the critical judgements, apart from those involving estimations (which are dealt with separately 
below), that the Directors have made in the process of applying the Group’s accounting policies and that have the 
most signiﬁcant effect on the amounts recognised in the ﬁnancial statements.
Exceptional items
The Directors have chosen to separate certain items of ﬁnancial performance which they believe, because of size or incidence, 
require separate disclosure to enable underlying performance to be assessed. These items are fully described in note 10.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet 
date, that have signiﬁcant risk of causing a material adjustment to the carrying amount of assets and liabilities 
within the next ﬁnancial year are discussed in the Directors’ Report and below.
Impairment of goodwill and property, plant and equipment
Determining whether goodwill and property, plant and equipment are impaired requires an estimation of the value 
in use of the cash-generating units to which goodwill has been allocated or to which property, plant and equipment 
belong. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the 
cash-generating unit and a suitable discount rate in order to calculate present value. The carrying amount of goodwill 
at the balance sheet date was £31.4 million (2011: £31.8 million). No impairment (2011: Nil) was required. The carrying 
amount of property , plant and equipment was £31.5 million (2011: £31.5 million). No impairment loss (2011: £Nil) was required.
Provision for slow moving inventory
The Group has guidelines for providing for inventory which may be sold below cost due to its age or condition. 
Directors assess the inventory at each location and in some cases decide that there are speciﬁc reasons to provide 
more than the guideline levels, or less if there are speciﬁc action plans in place which mean the guideline provision 
level is not required. Determining the level of inventory provision requires an estimation of likely future realisable 
value of the inventory in various time frames and comparing with the cost of holding stock for those time frames. 
Regular monitoring of stock levels, the ageing of stock and the level of the provision is carried out by the Directors. 
Details of inventory carrying values are provided in note 16. At the year end, stock purchased more than 15 months 
previously has reduced from £7.9 million to £5.2 million (at March 2012 exchange rates) and the Group has provisions 
of £4.8 million (2011: £6.0 million) over the total inventory value.
Share-based payments
The Directors are required to estimate the fair values of services received in return for share options granted to employees 
that are measured by reference to the fair value of share options granted. The estimate of the fair value of the services 
received is based on a Black-Scholes model (with the contractual life of the option and expectations of early exercise 
incorporated into the model). Details of the key assumptions made in the measurement of share-based payments 
are provided in note 28.
Taxation
There are many transactions and calculations for which the ultimate tax determination is uncertain. Signiﬁcant judgement 
is required in determining the Group’s tax assets and liabilities. Deferred tax assets have been recognised to the extent 
they are recoverable based on proﬁt projections for future years. Income tax liabilities for anticipated issues have been 
recognised based on estimates of whether additional tax will be due. Notwithstanding the above, the Group believes 
that it will recover tax assets and has adequate provision to cover all risks across all business operations. See note 15 
for more details. 42 International Greetings plc Annual report and accounts 2012
3 Financial risk management
Risk management is discussed in the Directors’ Report and a discussion of risks and uncertainties can be found on 
pages 15 and 16, along with the Group’s key risks. See note 29 for additional information about the Group’s exposure 
to each of these risks and the ways in which they are managed. Below are key ﬁnancial risk management areas:
 Currency risk is mitigated by a mixture of forward contracts, spot currency purchases and natural hedges.
 Liquidity risk is managed by monitoring daily cash balances, weekly cash flow forecasts, regular reforecasting 
of monthly working capital and regular dialogue with the Group’s banks.
 Credit risk is managed by constant review of key debtors and banking with reputable banks.
4 Segmental information
The Group has one material business activity being the design, manufacture and distribution of gift packaging 
and greetings, stationery and creative play products.
For management purposes the Group is organised into four geographic business units.
The results below are allocated based on the region in which the businesses are located; this reflects the Group’s 
management and internal reporting structure. The decision was made last year to focus Asia as a service provider 
of manufacturing and procurement operations, whose main customers are our UK businesses. Both the China factory 
and the majority of the Hong Kong procurement operations are now overseen by our UK operational management 
team and we therefore continue to include Asia within the internal reporting of the UK operations, such that UK 
and Asia comprise an operating segment. The Chief Operating Decision Maker is the Board.
Intra-segment pricing is determined on an arm’s length basis. Segment results include items directly attributable 
to a segment as well as those that can be allocated on a reasonable basis.
Financial performance of each segment is measured on operating proﬁt. Interest expense or revenue and tax are 
managed on a Group basis and not split between reportable segments.
Segment assets are all non-current and current assets, excluding deferred tax and income tax receivable. Where cash 
is shown in one segment, which nets under the Group’s banking facilities, against overdrafts in other segments, the 
elimination is shown in the eliminations column. Similarly inter-segment receivables and payables are eliminated.
UK and Asia
£000
Europe
£000
USA
£000
Australia
£000
Eliminations
£000
Group
£000
Year ended 31 March 2012
Continuing operations
Revenue – external 117,007  29,147  45,044  29,557 — 220,755 
 – inter-segment 4,746  1,009 — — (5,755) —
Total segment revenue 121,753  30,156  45,044  29,557  (5,755) 220,755 
Segment result before exceptional items 
and discontinued operations 4,089  1,712  3,248  3,613 — 12,662 
Exceptional items (3,068) ——— — (3,068)
Segment result 1,021 1,712 3,248 3,613 — 9,594 
Central administration costs (1,939)
Central administration exceptional items (850)
Net ﬁnance expenses (3,635)
Income tax (1,753)
Proﬁt from continuing operations for the year 
ended 31 March 2012 1,417
Balances at 31 March 2012
Continuing operations 
Segment assets 97,100 16,885 6,224 11,317 4,301 135,827
Segment liabilities (40,562) (13,950) (25,029) (3,222) (516) (83,279)
Capital expenditure
– property, plant and equipment 1,185  2,437  331  62 — 4,015 
– intangible 263  30  87  19 — 399 
Depreciation 2,135  742  696  180 — 3,753 
Amortisation 368  57  24  85 — 534 
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 43 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
4 Segmental information continued
UK and Asia
£000
Europe
£000
USA
£000
Australia
£000
Eliminations
£000
Group
£000
Year ended 31 March 2011
Continuing operations
Revenue – external 117,806 33,493  39,980  25,578 — 216,857 
 – inter-segment 2,599 — — — (2,599) —
Total segment revenue 120,405 33,493  39,980  25,578  (2,599) 216,857 
Segment result before exceptional items 
and discontinued operations 2,673 2,107  2,096  2,455 — 9,331 
Exceptional items (510) — (238) — — (748)
Segment result from continuing operations 2,163  2,107  1,858  2,455 — 8,583 
Pre-tax loss from discontinued operations — (100) — — — (100)
Segment result 2,163  2,007  1,858  2,455 — 8,483 
Pre-tax loss from discontinued operations 100 
Central administration costs (1,249)
Central administration exceptional items (152)
Net ﬁnance expenses (2,917)
Income tax 693 
Proﬁt from continuing operations year ended 
31 March 2011 4,958
Balances at 31 March 2011 continuing operations
Segment assets 100,853  18,112  6,272  9,438  4,302  138,977
Segment liabilities (41,243) (15,721) (27,245) (2,611) 153  (86,667)
Capital expenditure
– property, plant and equipment 1,334  297  231  279 — 2,141
– intangible 307  17  16  181 — 521 
Depreciation 2,346  821  780  161 — 4,108 
Amortisation 161  44  64  62 — 331 
Impairment of ﬁxed property, 
plant and equipment — — 238 — — 238
(a) Capital expenditure consists of additions of property, plant and equipment, intangible assets and goodwill.
(b) No single customer accounts for over 10% of total sales.
(c)  The assets and liabilities that have not been allocated to segments consist of deferred tax assets of £4,640,000 (2011: £4,617,000) and income tax 
payable of £855,000 (2011: £162,000). In addition, the assets and liabilities have been grossed up for VAT of £399,000 (2011: £315,000) to reflect 
the net position of the Group.
(d) No operating segment has been aggregated in determining reportable segments.
(e)  Central recharges are included within the result of the segment that takes the recharge. The balance of the central costs are not allocated 
to segments.
(f)  The 2011 comparatives have been amended to reflect revision to the inter-segmental reporting and eliminations between the segments.
Geographical information
The Group’s information about its segmental assets (non-current assets excluding deferred tax assets and other 
ﬁnancial assets) and turnover by customer destination and product are detailed below:
Non-current assets
2012
£000
2011
£000
UK 39,284 39,705
Asia 1,605 1,929
USA 6,589 6,850
Europe 15,008 14,285
Australia 1,963 2,134
64,449 64,903 44 International Greetings plc Annual report and accounts 2012
4 Segmental information continued
Turnover by customer destination
Turnover
2012
£000
2011
£000
2012
%
2011
%
UK 84,648 89,916 39 41
USA 58,389 53,076 26 25
Europe 39,797 43,711 18 20
Australia and New Zealand 29,557 25,578 13 12
Rest of the world 8,364 4,576 4 2
220,755 216,857 100 100
Turnover by product
Turnover analysis by product
2012
£000
2011
£000
2012
%
2011
%
Gift packaging and greetings 148,531 142,409 67 66
Stationery and creative play products 72,224 74,448 33 34
Total 220,755 216,857 100 100
5 Expenses and auditors’ remuneration
Included in proﬁt are the following charges/(credits):
Notes
2012
£000
2011
£000
Depreciation 12 3,470 4,108 
Impairment 12 283 —
Proﬁt on sales of property, plant and equipment (59) (33)
Release of deferred grant income 7 (550) (550)
Amortisation of intangible assets 13 534 331 
Operating lease payment – minimum lease payment 30 4,057 4,422 
Sublease rental income 7 (70) (73)
Write-down of inventories to net realisable value 16 2,326 2,552 
Reversal of previous write-downs on inventory 16 (619) (603)
Gain on foreign exchange (1) (616)
Auditors’ remuneration:
2012
£000
2011
£000
Amounts receivable by auditors and their associates in respect of:
Audit of these ﬁnancial statements 57 54 
Audit of ﬁnancial statements of subsidiaries pursuant to legislation
– overseas subsidiaries 154 193 
– UK subsidiaries 77 62 
Other services relating to taxation 174 100 
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 45 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
6 Staff numbers and costs
This note includes staff numbers and costs from both continuing and discontinued operations.
The average number of persons employed by the Group (including Directors) during the year, analysed by category, 
was as follows:
Number of employees
2012 2011
Selling and administration 441 434
Production and distribution 1,619 1,996
2,060 2,430
The aggregate payroll costs of these persons were as follows:
Note
2012
£000
2011
£000
Wages and salaries 37,331 37,578 
Share-based payments 28 43 109 
Social security costs 3,165 2,945 
Other pension costs 2,055 1,962 
42,594 42,594 
For information on Directors’ remuneration please refer to the sections titled “Executive share options” 
and “Directors’ remuneration” within the Directors’ Remuneration Report.
7 Other operating income
2012
£000
2011
£000
Lease premium — 271 
Grant income received 550 550 
Sublease rentals credited to the income statement 70 73 
Other 58 125 
678 1,019 
8 Finance expenses
2012
£000
2011
£000
Interest payable on bank loans and overdrafts 2,756 2,295 
Other similar charges 699 751 
Finance charges in respect of ﬁnance leases 3 4 
Interest payable under the effective interest method 3,458 3,050 
Derivative ﬁnancial instruments at fair value through income statement 177 (133)
3,635 2,917  46 International Greetings plc Annual report and accounts 2012
9 Taxation
Recognised in the income statement
2012
£000
2011
£000
Current tax expenses
Current year – UK corporation tax — —
Current year – foreign tax 991 1,144 
Adjustments for prior years (see below) 798 (605)
1,789 539 
Deferred tax expense
Original and reversal of temporary differences (473) (765)
Adjustments in respect of previous periods 437 (467)
(36) (1,232)
Total tax in income statement 1,753 (693)
Reconciliation of effective tax rate
2012
£000
2011
£000
Proﬁt before tax 3,170 4,265 
Proﬁt before tax multiplied by the standard rate of corporation tax of 26% 
in the UK (2011: 28%) 824 1,194
Effects of:
Expenses not deductible for tax purposes 27 21 
Recycle of translation gain on closure of subsidiary — (3)
Unrecognised tax losses 1,016 633 
Beneﬁt of unrecognised deferred tax on losses and temporary difference (1,826) (1,291)
Non-taxable income — (32)
Deferred tax effect on tax rate charges 92 159 
Refund carryback due to change in tax law — (427)
Differences between UK and overseas tax rates 349 125 
Other items 36 —
Adjustments in respect of prior year 1,235 (1,072)
Total tax in income statement 1,753 (693)
10 Exceptional items
2012 continuing operations
Cost of 
sales
£000
Selling
 expenses
£000
Admin
expenses
£000
Total
£000
Restructuring of operational activities
– redundancies (note a) — — 1,201  1,201 
–  loss on disposal of leasehold land and buildings  
in China (note b) — — 283  283
– China factory move (note c) — — 2,434 2,434
Total restructuring costs —— 3,918 3,918
Income tax credit (195)
 3,723
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 47 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
10 Exceptional items continued
2011 continuing operations
Cost of 
sales
£000
Selling
 expenses
£000
Admin
expenses
£000
Total
£000
Restructuring of operational activities
– redundancies (note d) 27  401 234 662 
– impairment of asset for resale (note e) — — 238 238 
Total restructuring costs 27 401 472 900 
Income tax credit (267)
633
(a)  Redundancies relate to the termination costs of key executives who left the business following a review of Board responsibilities and as 
a result of business re-organisation in the UK subsidiaries.
(b) Loss on disposal of leasehold land and buildings in China as a result of the decision to move the China factory.
(c) Costs associated with moving the China factory.
(d)  The UK design studio moved down to Wales, senior management were made redundant from our UK operations due to restructuring within 
those businesses, and the decision was made to bring the China factory under the control of the UK management team, resulting in a senior 
manager in Asia being made redundant. These redundancies cost £662,000.
(e)  During the prior year the Group was called upon to repay the mortgage of a former senior employee of the USA business upon his repatriation 
to the UK, according to a guarantee given by the Group about ﬁve years ago. The Group purchased the property and has disposed of it for £528,000.
11 Discontinued operations
2011
£000
Revenue 390 
Cost of sales (358)
Gross proﬁt 32 
Selling expenses (17)
Administration expenses (89)
Operating loss (74)
Finance expenses (26)
Loss before tax and exceptional items (100)
Income tax —
Loss from discontinued operation before exceptional items (100)
The net cash flows attributable to Eick Pack are as follows:
2011
£000
Operating cash flows (13)
Investing cash flows —
Net cash flows (13)
Loss per share from discontinued operation:
Basic (0.2p)
Diluted (0.2p) 48 International Greetings plc Annual report and accounts 2012
12 Property, plant and equipment
Land and buildings
Plant and
equipment
£000
Fixtures and
ﬁttings
£000
Motor
vehicles
£000
Total
£000
Freehold
£000
Leasehold
£000
Cost
Balance at 1 April 2010 22,137 8,065 48,644 4,320 988 84,154 
Additions 246 6 991 782 116 2,141 
Disposals — (605) (2,643) (2,883) (262) (6,393)
Effect of movements in foreign exchange (68) (495) (1,097) (196) 11 (1,845)
Balance at 1 April 2011 22,315 6,971 45,895 2,023 853 78,057 
Additions 141 723 2,832 194 125 4,015 
Disposals — (721) (658) (947) (263) (2,589)
Effect of movements in foreign exchange (483) 226 277 52 7 79 
Balance at 31 March 2012 21,973 7,199 48,346 1,322 722 79,562 
Depreciation and impairment
Balance as at 1 April 2010 (7,202) (2,351) (36,331) (3,349) (722) (49,955)
Depreciation charge for the year (920) (349) (2,179) (552) (108) (4,108)
Disposals — 605 2,634 2,876 238 6,353 
Effect of movements in foreign exchange (1) 127 866 182 (3) 1,171 
Balance at 1 April 2011 (8,123) (1,968) (35,010) (843) (595) (46,539)
Depreciation charge for the year (930) (333) (1,848) (546) (96) (3,753)
Disposals — 528 653 859 207 2,247 
Effect of movements in foreign exchange 89 (51) (16) (16) 10 16 
Balance at 31 March 2012 (8,964) (1,824) (36,221) (546) (474) (48,029)
Net book value
At 31 March 2012 13,009 5,375 12,125 776 248 31,533
At 31 March 2011 14,192 5,003 10,885 1,180 258 31,518 
Depreciation is charged to either cost of sales, selling costs or administration costs within the income statement 
depending on the department to which the assets relate.
Leased plant and machinery
The net book value of property, plant and equipment included an amount of £160,000 (2011: £193,000) in respect 
of assets held under ﬁnance leases.
Impairment
The impairments are explained in note 10.
Apart from these speciﬁc items, all other property, plant and equipment have been compared with the value in use 
and no further impairments are required. The basis for these conclusions are explained in note 13.
Security
All freehold properties are subject to a ﬁxed charge.
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 49 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
13 Intangible assets
Goodwill
£000
Computer
software
£000
Other
intangibles
£000
Total
£000
Cost
Balance at 1 April 2010 40,958 2,818 494 44,270 
Additions — 521 — 521 
Disposals (26) (379) — (405)
Effect of movements in foreign exchange (347) (44) 1 (390)
Balance at 1 April 2011 40,585 2,916 495 43,996 
Additions — 399 — 399 
Disposals — (356) — (356)
Effect of movements in foreign exchange (290) 4 — (286)
Balance at 31 March 2012 40,295 2,963 495 43,753 
Amortisation and impairment
Balance at 1 April 2010 (9,238) (1,749) (144) (11,131)
Amortisation for the year — (283) (48) (331)
Disposals 26 379 — 405 
Effect of movements in foreign exchange 390 57 (1) 446 
Balance at 1 April 2011 (8,822) (1,596) (193) (10,611)
Amortisation for the year — (486) (48) (534)
Disposals — 352 — 352 
Effect of movements in foreign exchange (39) (5) — (44)
Balance at 31 March 2012 (8,861) (1,735) (241) (10,837)
Net book value
At 31 March 2012 31,434 1,228 254 32,916
At 31 March 2011 31,763 1,320 302 33,385 
The aggregate carrying amounts of goodwill allocated to each geographical segment are as follows:
2012
£000
2011
£000
UK and Asia 25,600 25,600 
Europe 4,505 4,842 
USA — —
Australia 1,329 1,321 
Total 31,434 31,763 
Impairment
The Group tests goodwill each half year for impairment, or more frequently if there are indications that goodwill 
might be impaired.
For the purposes of impairment testing, goodwill considered signiﬁcant in comparison to the Group’s total carrying 
amount of such assets has been allocated to the business unit, or group of business units, that are expected to beneﬁt 
from the synergies of the combination (see table above), which represents the lowest level within the Group at which 
the goodwill is monitored for internal management purposes, and is referred to below as a cash-generating unit. 
During the last few years the businesses have begun to work more closely with each other, exploiting the synergies 
that arise. The recoverable amounts of cash-generating units are determined from the higher of value in use and fair 
value less costs to sell. 
The Group prepares cash flow forecasts for each cash-generating unit derived from the most recent ﬁnancial budgets 
for the following three years. The key assumptions in these are sales, margins achievable and overhead costs which 
are reviewed and approved by the Board. The Group then extrapolates cash flows for the following ten years based 
on a conservative estimate of market growth of 2% (2011: 2%).  50 International Greetings plc Annual report and accounts 2012
13 Intangible assets continued
Impairment continued
The cash-generating units used the following pre-tax discount rate which are derived from an estimate of the Group’s 
future average weighted cost of capital adjusted to reflect the market assessment of the risks speciﬁc to the current 
estimated cash flows over the same period.
Pre-tax discount rates used were:
2012 2011
UK and Asia 13.2% 13.0%
Europe 15.4% 13.0%
USA 16.7% 13.0%
Australia 14.3% 13.0%
All of the cash-generating units’ values in use were determined to be higher than fair value less costs to sell, thus 
this was used as the recoverable amount. In all businesses the carrying value of the goodwill was supported by the 
recoverable amount and there are currently no reasonably foreseeable changes to assumptions that would give rise 
to an impairment of the carrying value.
The Directors do not believe a reasonably possible change to the assumptions would give rise to an impairment. 
The Directors have considered a 3% movement in the discount rate and a flat in budget growth rate assumption 
in their assessment.
14 Acquisition of subsidiaries
Deferred consideration payable
2011
£000
Settled in 
cash
£000
Translation
difference
£000
2012
£000
Eick Pack (note a) 111  (111) — —
a)  On 23 January 2007, the Group acquired 100% of the issued share capital of Eick Pack Werner GmbH & Co (Eick Pack) a manufacturer of gift-wrap 
counter rolls based in Germany. Initial consideration of €1 was paid for shares. The share purchase agreement also provided for the potential payment 
of outstanding loans made by the previous shareholders to Eick Pack, dependent on Eick Pack’s proﬁts for the years ended 31 March 2008 to 2010, 
including a guaranteed minimum amount of £111,000 payable at the end of this period. This has now been paid. In July 2010 Eick Pack was put 
into administration.
15 Deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
Assets Liabilities Net
2012
£000
2011
£000
2012
£000
2011
£000
2012
£000
2011
£000
Property, plant and equipment 409 591 (1,875) (1,155) (1,466) (564)
Inventory provisions 421 809 — — 421 809
Capital gains deferred — — (494) (563) (494) (563)
Deferred lease premium 83 79 — — 83 79
Provisions 722 894 — — 722 894
Tax loss carried forward 3,817 2,406 — — 3,817 2,406
Other timing differences 1,557 1,555 — — 1,557 1,555
Net tax assets/(liabilities) 7,009 6,334 (2,369) (1,718) 4,640 4,616
The deferred tax asset in respect of tax losses carried forward at 31 March 2012 of £3,817,000 (2011: £2,406,000) 
is comprised of UK tax losses of £1,943,000 (2011: £1,982,000) and USA losses of £1,874,000 (2011: £424,000). USA tax 
losses carried forward will become irrecoverable in March 2027. UK tax losses may be carried forward indeﬁnitely. 
The deferred tax assets have been recognised where the Board considers there is sufﬁcient evidence that taxable 
proﬁts will be available against which the tax losses can be utilised. The Board expects that the tax losses will be 
recoverable against future proﬁts but given the level of tax losses brought forward recoverability has been assessed 
on the basis of expected proﬁts currently forecast. Deferred tax assets in respect of taxable losses that are expected to be 
recovered outside this forecast period have not been recognised. This includes unrecognised deferred tax assets in respect 
of brought forward UK losses of £444,000 (2011: £480,000) and £4,421,000 (2011: £5,336,000) in respect of brought forward 
USA tax losses.
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 51 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
15 Deferred tax assets and liabilities continued
No deferred tax asset is recognised in respect of losses for Hong Kong totalling £195,000 (2011: £103,000) and China 
£661,000 (2011: £530,000). No deferred tax is recognised on unremitted earnings of overseas subsidiaries. Overseas 
reserves can now be repatriated to the UK with no tax cost. If all overseas earnings were repatriated with immediate 
effect, no tax charge (2011: £Nil) would be payable.
At the balance sheet date the UK government enacted a 2% reduction in the main rate of UK corporation tax from 26% to 
24% effective from 1 April 2012. The government has also proposed reducing the UK corporation tax rate by a further 1% 
per annum to 22% by 1 April 2014. However , these further rate changes had not been substantively enacted at the balance 
sheet date and their effects are not, therefore, included in these ﬁnancial statements. We do not expect that the enactment 
of these changes will have a material impact on the deferred tax balance of the Group.
There are no deferred tax balances with respect to cash flow hedges.
Movement in deferred tax during the year
1 April
2011
£000
Disposal of 
subsidiary
£000
Recognised in
 income
£000
Recognised in
equity
£000
31 March
2012
£000
Property, plant and equipment (564) — (925) 23 (1,466) 
Inventory provisions 809 — (398) 10 421
Capital gains deferred (563) — 69 — (494) 
Deferred lease premium 79 — 3 1 83
Provisions 894 — (150) (22) 722
Tax loss carried forward 2,406 — 1,436 (25) 3,817
Other timing differences 1,555 — 1 1 1,557
Net tax assets 4,616 — 36 (12) 4,640
Movement in deferred tax during the prior year
1 April
2010
£000
Restated
disposal of 
subsidiary
£000
Restated
recognised in
 income
£000
Recognised in
equity
£000
31 March
2011
£000
Property, plant and equipment (1,005) — 430 11 (564) 
Inventories 858 (135) 101 (15) 809
Capital gains deferred (606) — 43 — (563) 
Deferred lease premium 150 — (76) 5 79
Provisions 482 — 376 36 894
Tax loss carried forward 2,250 — 155 1 2,406
Other timing differences 1,372 — 203 (20) 1,555
Net tax assets 3,501 (135) 1,232 18 4,616
16 Inventory
2012
£000
2011
£000
Raw materials and consumables 5,696 7,149 
Work in progress 9,375 6,323 
Finished goods 27,557 32,110 
42,628 45,582 
Of the £42,628,000 (2011: £45,582,000) stock value £38,813,000 (2011: £39,958,000) is held at cost and £4,528,000 
(2011: £5,624,000) is held at net realisable value. The write-down of inventories to net realisable value amounted 
to £2,326,000 (2011: £2,552,000). The reversal of previous write-downs amounted to £619,000 (2011: £603,000). 
The reversal is due to the inventory being either used or sold.
Materials and consumables and changes in ﬁnished goods and work in progress recognised as a cost of sales 
amounted to £150,991,000 (2011: £149,097,000). 52 International Greetings plc Annual report and accounts 2012
16 Inventory continued
Part of the Group’s funding is via asset backed loans from our bankers. These loans are secured on the inventory 
and trade receivables of the larger UK and European businesses. The amount of the inventory that is used to secure 
an asset backed loan is £25,462,000 (2011: £26,651,000). In addition bank loans to Hoomark and IG USA are secured on 
a freehold property and contents, including inventory, therein.
Refer to note 20 for outstanding balance on asset backed loans and details of the secured bank loans.
17 Assets held for sale
2012
£000
2011
£000
Asset acquired — 780 
Impairment — (238)
Effect of exchange — (45)
— 497 
In the previous year the Group was called upon to repay the mortgage of a former senior employee of the USA business 
upon his repatriation to the UK, according to a guarantee given by the Group about ﬁve years ago. The Group purchased 
the property and disposed of it during the current year for £528,000. 
18 Trade and other receivables
2012
£000
2011
£000
Trade receivables 17,066 17,366 
Prepayments and accrued income 1,584 1,742 
Other receivables 2,060 1,853 
VAT receivable 232 453 
Forward foreign currency contracts carried at fair value through 
the income statement — 80 
20,942 21,494 
Part of the Group’s funding is via asset backed loans from our bankers. These loans are secured on the inventory 
and trade receivables of the larger UK and European businesses. The amount of the trade receivables that is used 
to secure an asset backed loan is £7,629,000 (2011: £9,928,000).
Refer to note 20 for outstanding balance on asset backed loans.
There are no trade receivables in the current year (2011: £Nil) expected to be recovered in more than twelve months.
The Group’s exposure to credit and currency risks and impairment losses related to trade and other receivables is disclosed 
in note 29.
19 Cash and cash equivalents/bank overdrafts
2012
£000
2011
£000
Cash and cash equivalents 3,168 1,885 
Bank overdrafts (1,945) (3,620)
Cash and cash equivalents per cash flow statement 1,223 (1,735)
Net debt
Note
2012
£000
2011
£000
Cash and cash equivalents 3,168 1,885 
Bank loans and overdrafts 20 (45,266) (46,309)
Loan arrangement fees 370 —
Net debt as used in the Financial Review (41,728) (44,424)
The Group’s exposure to interest rate risk and sensitivity analysis for ﬁnancial assets and liabilities are disclosed 
in note 29.
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 53 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
19 Cash and cash equivalents/bank overdrafts continued
Net debt continued
The bank overdrafts are secured by a ﬁxed charge on certain of the Group’s land and buildings, a ﬁxed charge on certain 
of the Group’s book debts and a floating charge on certain of the Group’s other assets.
20 Loans and borrowings
This note provides information about the contractual terms of the Group’s interest-bearing loans and borrowings. 
For more information about the Group’s exposure to interest rate and foreign currency risk, see note 29.
2012
£000
2011
£000
Non-current liabilities
Secured bank loans (see below) 33,880 8,377 
Loan arrangement fees (258) —
33,622 8,377 
Current liabilities
Asset backed loan 5,467 4,449 
Revolving credit facilities — 28,901 
Current portion of secured bank loans (see below) 3,974 962 
Bank loans and borrowings (see below) 9,441 34,312 
Loan arrangement fees (112) —
9,329 34,312 
The asset backed loans are secured on the inventory and receivables of the larger business units within the UK 
and European business segments.
The revolving credit facilities are secured on the assets of the Group, in the same way as the bank overdraft above. 
The interest rate is 2.5% over LIBOR. The facilities are drawn for periods from one day up to six months.
Following the negotiations of new banking facilities in July 2011, the Group accrued arrangement fees which are being 
spread over the life of the facility.
Terms and debt repayment schedule
Repayment analysis of bank loans and overdrafts
2012
£000
2011
£000
Due within one year:
Bank loans and borrowings (see above) 9,441 34,312 
Bank overdrafts (note 19) 1,945 3,620 
Due between one and two years:
Secured bank loans (see below) 4,666 975 
Due between two and ﬁve years:
Secured bank loans (see below) 24,807 2,324 
Due after more than ﬁve years:
Secured bank loans (see below) 4,407 5,078 
45,266 46,309 
In July 2011 the Group negotiated new facilities with its principal bank, split between US dollars and sterling comprising 
a ﬁve year loan of £15.2 million with a bullet repayment on the ﬁfth anniversary , a four year amortising loan of £14.8 million, 
a one year revolving multi-currency credit facility of up to £33 million and a one year rolling multi-currency overdraft 
facility of up to £5 million, plus a two year asset back loan facility secured on the UK business inventory and debtors.
We have also secured a three year asset backed loan facility of up to £25 million with a USA bank to assist in the 
funding of the USA business and to mitigate the currency effect on our facility headroom.
Secured bank loans
Loan 1
The principal of £588,000 (2011: £730,000) is repayable monthly on a reducing balance basis over a 15 year 
period, ending in March 2016. The loan is secured over the freehold land and buildings and the contents therein 
of International Greetings USA, Inc. and is subject to a variable rate of interest linked to the US Federal Funds Rate 
(US FFR). The currency of denomination of the loan is US dollar. 54 International Greetings plc Annual report and accounts 2012
20 Loans and borrowings continued
Secured bank loans continued
Loan 2
The principal of £582,000 (2011: £739,000) is repayable monthly on a reducing balance basis over a nine year 
period ending in March 2016. The loan is secured over the freehold land and buildings and the content therein 
of International Greetings USA, Inc. and is subject to a variable rate of interest linked to the US FFR. The currency 
of denomination of the loan is US dollar.
Loan 3
The principal of £6,281,000 (2011: £7,069,000) is repayable quarterly over a 20 year period ending in July 2028. 
The loan is secured over the freehold land and buildings and the content therein of Hoomark B.V . and is subject 
to a variable rate of interest linked to EURIBOR, that has been swapped to a ﬁxed rate for a notional amount 
of £5,833,000 (2011: £6,195,000) and a period of three years ending in January 2017. The currency of denomination 
of the loan is euro.
Loan 4
The principal of £510,000 (2011: £801,000) is repayable monthly over a ﬁve year period ending November 2013. 
The loan is secured over the plant and machinery of International Greetings UK Ltd and is subject to a variable 
rate interest linked to the UK base rate. The currency of denomination of the loan is sterling.
Loan 5
The principal of £14,904,000 (2011: Nil) is repayable over a ﬁve year period with a bullet repayment on the ﬁfth 
anniversary. £9,100,000 is denominated in sterling and £5,804,000 is denominated in US dollars. They are subject 
to a variable interest rate linked to LIBOR except for the element that has been swapped. At 31 March 2012 the Group 
had an interest rate cap on a notional amount of £8 million, and a notional amount of $8 million, whereby interest 
payable has been capped at 1.5% on both notional amounts. The terms of the hedge have been negotiated to match 
the terms of the commitments.
Loan 6
The principal of £14,988,000 (2011: Nil) is repayable and amortised over a four year period. £8,800,000 is denominated 
in sterling and £6,188,000 is denominated in US dollars. They are subject to variable interest rate linked to LIBOR except 
for the elements that have been swapped. At 31 March 2012, the Group had an interest rate swap in place with a notional 
amount of £6.9 million whereby it receives a floating rate of interest based on LIBOR and pays a ﬁxed rate of interest 
at 0.92% on the notional amount. The terms of the hedge have been negotiated to match the terms of the commitments.
At 31 March 2012, the Group had an interest rate swap in place with a notional amount of $9.9 million whereby 
it receives a floating rate of interest based on LIBOR and pays a ﬁxed rate of interest at 0.77% on notional amount. 
The terms of the hedge have been negotiated to match the terms of commitment.
21 Deferred income
2012
£000
2011
£000
Included within non-current liabilities
Deferred grant income 1,879 2,429 
Included within current liabilities 
Deferred grant income 550 550 
The deferred grant income is in respect of a government grant relating to a print plant. All conditions have now been 
met and there is no requirement to repay. It is being amortised in line with the depreciation on the print plant.
22 Provisions
Property
£000
Balance at 1 April 2011 1,847 
Provisions released during the year (507)
Provisions utilised during the year (20)
Balance at 31 March 2012 1,320 
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 55 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
22 Provisions continued
2012
£000
2011
£000
Non-current 1,003 1,847 
Current 317 —
1,320 1,847 
The provision represents the estimated reinstatement cost of two of the Group’s leasehold properties under fully repairing 
leases and provision for an onerous lease for one of those properties. A professional valuation has been performed 
during the year for one of the leasehold properties and the provision was reassessed and is stated after discounting.
23 Other ﬁnancial liabilities
Note
2012
£000
2011
£000
Included within non-current liabilities
Finance lease 57 99 
Other creditors and accruals 390 276 
447 375 
Included within current liabilities
Deferred acquisition payments 14 — 111 
Finance lease 69 76 
Other creditors and accruals 9,587 9,331 
Forward foreign currency contracts carried at fair value 
through the income statement 97 —
Forward foreign exchange contracts carried at fair value 
through the hedging reserve 446 124 
10,199 9,642 
Finance lease liabilities
Finance lease liabilities are payable as follows:
Minimum
lease
payments
2012
£000
Interest
2012
£000
Principal
2012
£000
Minimum
lease
payments
2011
£000
Interest
2011
Principal
2011
£000
Less than one year 78 (9) 69 98 (22) 76
Between one and ﬁve years 61 (4) 57 107 (8) 99
139 (13) 126 205 (30) 175
24 Trade and other payables
2012
£000
2011
£000
Trade payables 22,396 24,050 
Other payables including income taxes and social security 737 1,303 
23,133 25,353
25 Share capital
In thousands of shares
Ordinary shares
2012 2011
In issue at 1 April 53,967 52,150
Issued as consideration for acquiring subsidiaries and associates — 1,492
Options exercised during the year 1,040 325
In issue at 31 March – fully paid 55,007 53,967 56 International Greetings plc Annual report and accounts 2012
25 Share capital continued
2012
£000
2011
£000
Allotted, called up and fully paid
Ordinary shares of £0.05 each 2,750 2,698
Share options exercised during the year amounted to 1,040,000 (2011: 325,000) which generated cash proceeds 
of £146,000 (2011: £56,000). 
During the previous year the Company issued 1,816,613 ordinary shares of 5p each for £1,078,000, £1,491,613 in respect 
of consideration for the cost of acquiring subsidiaries and £325,000 due to the exercise of share options which 
generated cash proceeds of £56,000. 
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled 
to one vote per share at meetings of the Company.
26 Earnings per share
2012 2011
Diluted Basic Diluted Basic
Adjusted earnings per share excluding exceptional items 
and discontinued operations 6.7p 7.2p 8.2p 8.9p
Loss per share on exceptional items (6.4p) (6.9p) (1.1p) (1.2p)
Earnings per share from continuing operations 0.3p 0.3p 7.1p 7.7p
Loss per share on discontinued operations 0.0p 0.0p (0.2p) (0.2p)
Earnings per share 0.3p 0.3p 6.9p 7.5p
The basic earnings per share is based on the proﬁt attributable to equity holders of the Company of £177,000 
(2011: £4,010,000) and the weighted average number of ordinary shares in issue of 54,206,000 (2011: 53,127,000) 
calculated as follows:
Weighted average number of shares in thousands of shares 2012 2011
Issued ordinary shares at 1 April 53,967 52,150
Shares issued in respect of acquisitions — 854
Shares issued in respect of exercising of share options 239 123
Weighted average number of shares at 31 March 54,206 53,127
Adjusted basic earnings per share excludes exceptional items charged of £3,918,000 (2011: £900,000), the tax relief 
attributable to those items of £195,000 (2011: £267,000) and the loss on discontinued operations (net of tax) of £Nil 
(2011: £100,000), to give adjusted proﬁt of £3,900,000 (2011: £4,743,000).
Diluted earnings per share
The average number of share options outstanding in the year is 5,787,000 (2011: 6,157,000), at an average exercise 
price of 16.9p (2011: 16.4p). The diluted earnings per share is calculated assuming all these options were exercised. 
At 31 March the diluted number of shares was 58,486,612 (2011: 57,805,000).
A signiﬁcant number of shares became exercisable during the year (see note 28).
27 Dividends
No dividends were paid in year (2011: Nil). The Directors do not propose a ﬁnal dividend for 2012.
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 57 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
28 Share-based payments
Options
Options to subscribe for ordinary shares have been granted, pursuant to the Company’s approved and unapproved 
Employee Share Option Schemes, which are exercisable at dates ranging up to January 2021. At 31 March 2012, outstanding 
options were as follows:
Number of
ordinary shares Exercise price (p) Exercise dates
Approved: 3,125,710 14 Dec 2011 – Dec 2018
10,000 23.5 Apr 2012 – Apr 2019
191,600 31.25 Jul 2012 – Jul 2019
97,500 50 Sept 2012 – Sept 2019
96,774 62 Jan 2014 – Jan 2021
Unapproved: 1,416,846 14 Dec 2011 – Dec 2018
10,900 50 Sept 2012 – Sept 2019
53,226 62 Jan 2014 – Jan 2021
5,002,556 
All share-based payments are equity-settled.
There were no performance or proﬁtability conditions attached to the approved options (other than continued 
employment), except for 48,387 shares issued at 62p, which relate to speciﬁc performance targets related to sales 
of new product areas in the USA. Conditions related to proﬁtability for the two years to March 2011 are attached 
to the unapproved options awarded to Executive Directors and these conditions have now been fully met.
For the share options outstanding at 31 March 2012 the weighted average remaining contract life was 6.8 years (2011: 7.8 years).
The numbers and weighted average exercise prices of share options are as follows:
2012 2011
Weighted
average 
exercise 
price
Number of
options
Weighted
average 
exercise 
price
Number of
options
Outstanding at the beginning of the period 16p 6,047,556 15p 6,222,556 
Approved options granted during the period 0p — 62p 96,774 
Unapproved options granted in the period 0p — 62p 53,226 
Lapsed during the year 0p 5,000 0p —
Exercised during the period 14p (1,040,000) 17p (325,000)
Outstanding at the end of the period 18p 5,002,556 16p 6,047,556
Exercisable at the end of the period 14p 4,542,566 — — 
The weighted average share price at the date of exercise of share options exercised during the period was 56.6p 
(2011: 64.4p).
No share options were granted during the year. The principal assumptions used in assessing the fair value of share 
options granted in the previous period was as follows:
2011
Fair value at measurement date £0.20
Weighted average share price £0.62
Exercise price £0.62
Expected volatility 50%
Expected option life Three years
Expected dividends 0%
Risk-free interest rate (based on national government bonds) 2.5%
The expected volatility is based on the historical volatility (calculated based on the weighted average remaining 
life of the share options). 58 International Greetings plc Annual report and accounts 2012
28 Share-based payments continued
Options continued
The total expenses recognised for the period arising from share-based payments are as follows:
2012
£000
2011
£000
Equity-settled share-based payments 43 109 
29 Financial instruments
a) Fair values of ﬁnancial instruments
The carrying values for each class of ﬁnancial assets and ﬁnancial liabilities in the balance sheet, which are given 
below, are not considered to be materially different to their fair values.
As at 31 March 2012, the Group had derivative contracts, which were measured at Level 2 fair value subsequent to initial 
recognition, to the value of a liability of £543,000 (2011: net liability of £124,000) and an asset of £Nil (2011: £80,000).
Trade and other receivables
The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted 
at the market rate of interest at the balance sheet date if the effect is material. Doubtful receivable provisions are 
established based upon the difference between the receivable value and the estimated net collectible amount.
Trade and other payables
The fair value of trade and other payables is estimated as the present value of future cash flows, discounted at the 
market rate of interest at the balance sheet date if the effect is material.
Cash and cash equivalents
The fair value of cash and cash equivalents is estimated as its carrying amount where the cash is repayable on demand. 
Where it is not repayable on demand then the fair value is estimated at the present value of future cash flows, discounted 
at the market rate of interest at the balance sheet date.
Interest-bearing borrowings
Fair value, which after initial recognition is determined for disclosure purposes only, is calculated based on the 
present value of future principal and interest cash flows, discounted at the market rate of interest at the balance 
sheet date. For ﬁnance leases the market rate of interest is determined by reference to similar lease agreements.
Derivative ﬁnancial instruments
The fair value of forward exchange contracts is based on their market price.
Fair value hierarchy
Financial instruments which are recognised at fair value subsequent to initial recognition are grouped into Levels 1 
to 3 based on the degree to which the fair value is observable. The three levels are deﬁned as follows:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
Level 2: other techniques for which all inputs which have a signiﬁcant effect on the recorded fair value are observable, 
either directly or indirectly; and
Level 3: techniques which use inputs which have a signiﬁcant effect on the recorded fair value that are not based 
on observable market data.
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 59 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
29 Financial instruments continued
a) Fair values of ﬁnancial instruments continued
Fair value hierarchy continued
Notes
Carrying
amount
2012
£000
Fair 
value
2012
£000
Carrying
amount
2011
£000
Fair
value
2011
£000
Cash and cash equivalents 19 3,168  3,168  1,885  1,885 
Trade receivables 18 17,066 17,066  17,366  17,366 
Other receivables 18 2,060 2,060  1,853  1,853 
Financial assets at fair value through proﬁt or loss 18 —— 80  80 
Total ﬁnancial assets 22,294 22,294  21,184  21,184 
Bank loans and overdrafts 19 45,266 45,266  46,309  46,309 
Finance lease liability 23 126 126  175  175 
Other ﬁnancial liabilities 23 9,977 9,977  9,718  9,718 
Trade payables 24 22,396  22,396  24,050  24,050 
Other payables 24 737  737  1,303  1,303 
Total ﬁnancial liabilities measured at amortised cost 78,502  78,502  81,555  81,555 
Financial liabilities at fair value through proﬁt or loss 23 97  97 —— 
Financial liabilities at fair value through hedging reserve 23 446  446  124  124 
Total ﬁnancial liabilities at fair value 543  543  124  124 
Total ﬁnancial liabilities 79,045  79,045  81,679  81,679 
Net ﬁnancial liabilities 56,751  56,751  60,495  60,495 
b) Credit risk
Financial risk management
Credit risk is the risk of ﬁnancial loss to the Group if a customer or counterparty to a ﬁnancial instrument fails to meet 
its contractual obligations and arises principally from the Group’s receivables from customers and investment securities.
The Group’s exposure to credit risk is managed by dealing only with banks and ﬁnancial institutions with strong 
credit ratings. The Group’s ﬁnancial credit risk is primarily attributable to its trade receivables.
The Group has no signiﬁcant concentration of credit risk exposure as revenues are split across a large number 
of customers in different geographical areas. The main customers of the Group are large and mid-sized retailers, 
other manufacturers and wholesalers of greetings products, service merchandisers and trading companies. The Group 
has established procedures to minimise the risk of default of trade receivables including detailed credit checks 
undertaken before new customers are accepted and rigorous credit control procedures after sale. These processes 
have proved effective in minimising the level of impairments required.
The amounts presented in the balance sheet are net of allowances for doubtful receivables estimated by the Group’s 
management, based on prior experience and their assessment of the current economic environment. 
Exposure to credit risk
The carrying amount of ﬁnancial assets represents the maximum credit exposure. Therefore, the maximum exposure 
to credit risk at the balance sheet date was £22,294,000 (2011: £21,184,000) being the total of the carrying amount 
of ﬁnancial assets, excluding equity investments, shown in the table above. 60 International Greetings plc Annual report and accounts 2012
29 Financial instruments continued
b) Credit risk continued
Exposure to credit risk continued
The maximum exposure to credit risk for trade receivables at the balance sheet date by geographic region was:
2012
£000
2011
£000
UK and Asia 7,558 8,842
USA 2,856 2,463
Europe 2,419 2,883
Australia 4,233 3,178
17,066 17,366
Credit quality of ﬁnancial assets and impairment losses
The ageing of trade receivables at the balance sheet date was:
Gross
2012
£000
Impairment
2012
£000
Gross
2011
£000
Impairment
2011
£000
Not past due 13,132 (16) 12,309 (74)
Past due 0–90 days 3,679 (59) 4,763 (97)
More than 90 days 820 (490) 1,170 (705)
17,631 (565) 18,242 (876)
There were no unimpaired balances outstanding at 31 March 2012 (2011: Nil) where the Group had renegotiated the 
terms of the trade receivable.
The movement in the allowance for impairment in respect of trade receivables during the year was as follows:
2012
£000
2011
£000
Balance at 1 April 876 1,569 
Impairment loss recognised 19 566 
Impairment loss reversed (324) (1,248)
Effects of movement in foreign exchange (6) (11)
Balance at 31 March 565 876
The allowance account for trade receivables is used to record impairment losses unless the Group is satisﬁed that no 
recovery of the amount owing is possible; at that point the amounts considered irrecoverable are written off against 
the trade receivables directly.
c) Liquidity risk
Financial risk management
Liquidity risk is the risk that the Group will not be able to meet its ﬁnancial obligations as they fall due. In July 2011 
the Group negotiated new facilities with its principal bank, split between US dollars and sterling comprising a ﬁve year 
loan of £15.2 million with a bullet repayment on the ﬁfth anniversary , a four year amortising loan of £14.8 million, a one year 
revolving multi-currency credit facility of up to £33 million and a one year rolling multi-currency overdraft facility 
of up to £5 million, plus a two year asset back loan facility secured on the UK business inventory and debtors.
We have also secured a three year asset backed loan facility of up to £25 million with a USA bank to assist in the 
funding of the USA business and to mitigate the currency effect on our facility headroom. See “Treasury operations” 
in the Financial Review for further details.
The Group’s policy with regard to liquidity ensures adequate access to funds by maintaining an appropriate mix 
of short-term and longer-term facilities, which are reviewed on a regular basis. The maturity proﬁle of debt outstanding 
at 31 March 2012 is set out in note 20.
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 61 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
29 Financial instruments continued
c) Liquidity risk continued
Financial risk management continued
The following are the contractual maturities of ﬁnancial liabilities, including estimated interest payments:
31 March 2012 Notes
Nominal
interest
rate
%
Carrying
amount
£000
Contractual
cash flows
£000
One year 
or less
£000
One to
two years
£000
Two to
 ﬁve years
£000
More 
than
ﬁve years
£000
Non-derivative ﬁnancial liabilities
Secured bank loans – sterling 4.3 18,410 (21,405) (2,204) (2,973)(16,228) — 
Secured bank loans – US dollar 2.8 13,162 (22,104) (2,028) (4,074)(16,002) — 
Secured bank loans – euros 3.5 6,282 (8,523) (388) (402) (1,283) (6,450)
Total secured bank loans 20 37,854 (52,032) (4,620) (7,449) (33,513) (6,450)
Finance leases 23
– sterling leases 5.5 87 (95) (60) (33) (2) — 
– other leases 6.0 39 (44) (18) (19) (7) — 
Other ﬁnancial liabilities 9,977 (9,977) (9,587) (390) — —
Trade payables 24 22,396 (22,396)(22,396) — — — 
Other payables 24 737 (737) (737) — — — 
Asset backed loans 2.3–3.5 5,467 (5,467)(5,467) — — — 
Bank overdraft 1.5–4.5 1,945 (1,945) (1,945) — — —
Derivative ﬁnancial liabilities
Financial liabilities at fair value 
through the income statement – 
interest rate swaps
(a)
97 —————
Financial liabilities carried at fair 
value through the hedging reserve 
– interest rate swaps
(a)
354 ———— —
Forward foreign exchange contracts 
carried at fair value through the 
hedging reserve 92 (14,008)(14,008) — — —
79,045 (106,701)(58,838) (7,891) (33,522) (6,450)
(a) The interest swaps with fair values of 97,000 and 354,000 mature over a period of three years ending January 2017.
31 March 2011 Notes
Nominal
interest 
rate
%
Carrying
amount
£000
Contractual
cash flows
£000
One year 
or less
£000
One to
two years
£000
Two to
ﬁve years
£000
More
than
ﬁve years
£000
Non-derivative ﬁnancial liabilities
Secured bank loans – sterling 4.1 801 (884) (318) (318) (248) — 
Secured bank loans – US dollar 1.7 1,469 (1,529) (313) (309) (907) — 
Secured bank loans – euros 3.4 7,069 (9,191) (411) (423) (1,320) (7,037)
Total secured bank loans 20 9,339 (11,604) (1,042) (1,050) (2,475) (7,037)
Finance leases 23
– sterling leases 5.5 113 (131) (67) (47) (17) — 
– other leases 6.5 62 (74) (31) (19) (24) — 
Other ﬁnancial liabilities 9,718 (9,718) (9,442) (77) (108) (91)
Trade payables 24 24,050 (24,050)(24,050) — — — 
Other payables 24 1,303 (1,303)(1,303) — — — 
Asset backed loans 2.8–4.5 4,449 (4,449) (4,449) — — — 
Revolving credit facilities 2.8–3.1 28,901 (28,901) (28,901) — — — 
Bank overdraft 1.4–5.1 3,620 (3,620)(3,620) — — — 
Derivative ﬁnancial liabilities
Forward foreign exchange contracts 
carried at fair value through the 
hedging reserve 124 (6,666) (6,666) — — — 
81,679 (90,516) (79,571) (1,193) (2,624) (7,128) 62 International Greetings plc Annual report and accounts 2012
29 Financial instruments continued
c) Liquidity risk continued
Financial risk management continued
The following shows the facilities for bank loans, overdrafts, asset backed loans and revolving credit facilities:
31 March 2012 31 March 2011
Carrying
amount
£000
Facility
 used
contractual
cash flows
£000
Facility
unused
£000
Total 
facility
£000
Carrying
amount
£000
Facility 
used
contractual
cash flows
£000
Facility
unused
£000
Total 
facility
£000
Secured bank loans  
(see above) 37,854 (52,032) — (52,032) 9,339 (11,604) — (11,604)
Asset backed loans  
(see note (a) below) 5,467 (5,467) (7,200) (12,667) 4,449 (4,449) (5,654) (10,103)
Revolving credit facilities —— — — 28,901 (28,901) (7,899) (36,800)
Bank overdraft 1,945 (1,945) (5,221) (7,166) 3,620 (3,620) (6,341) (9,961)
45,266 (59,444) (12,421) (71,865) 46,309 (48,574) (19,894) (68,468)
(a) The asset backed loan facilities are dependent upon the levels of the relevant inventory and receivables. 
(b)  The major bank facilities vary in the year depending on forecast debt requirements. The maximum limit across all facilities with the major 
bank was £75 million. At 31 March 2012 the facility amounted to £38.8 million (2011: £48.0 million). 
(c)  Additional facilities were available at other banks of £19.5 million (2011: £8.9 million), including asset backed loans according to the level of the 
receivables and inventory.
(d)  The short term element (overdraft and RCF) of these facilities was renewed on improved terms in May 2012, which will slightly lower the 
blended rate in the forthcoming year and provides signiﬁcant additional headroom.
(e)  The assets backed loan facilities are to be renewed on:
 UK – August 2013 
 USA – July 2014 
 Europe – July 2014
d) Cash flow hedges
The following table indicates the periods in which the cash flows associated with cash flow hedging instruments are 
expected to occur:
31 March 2012
Carrying
amount
£000
Contractual
cash flows
£000
One year 
or less
£000
One to
 two years
£000
Two to
 ﬁve years
£000
More than 
ﬁve years
£000
Interest rate swaps:
Liabilities 354—————
Forward exchange contracts:
Liabilities 92  (14,008) (14,008) — — —
At 31 March 2012, the Group had an interest rate swap in place with notional amount of £6.9 million whereby it receives 
a floating rate of interest based on LIBOR and pays a ﬁxed rate of interest at 0.92% on the notional amount. The swap 
is to hedge the exposure to changes in the interest rate. The terms of the hedge have been negotiated to match the 
terms and commitments. The fair value of the swap at the balance sheet date was a liability of £17,000.
At 31 March 2012, the Group had an interest rate swap in place with a notional amount of $9.9 million whereby it 
receives a floating rate of interest based on LIBOR and pays a ﬁxed rate of interest at 0.77% on the notional amount. 
The swap is to hedge the exposure to changes in the interest rate. The terms of the hedge have been negotiated to 
match the terms of the commitments. The fair value of the swap at the balance sheet date was a liability of £30,000.
At 31 March 2012 the Group had an interest rate swap in place with notional amount of €7 million whereby it receives 
a floating rate of interest based on EURIBOR and pays a ﬁxed rate of interest at 2.285% on notional amount. This swap 
is to hedge the exposure to changes in the interest rate. The terms of the hedge have been negotiated to match the 
terms of the commitments. The fair value of the swap at the balance sheet date was a liability of £202,000.
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 63 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
29 Financial instruments continued
d) Cash flow hedges continued
At 31 March 2012, the Group had an interest rate cap on a notional amount of £8 million, and a notional amount 
of $8 million, whereby interest payable has been capped at 1.5% on both notional amounts. The terms of the hedge 
have been negotiated to match the terms of the commitments. The fair value of the caps at the balance sheet were 
liabilities of £105,000.
The Group has forward currency hedging contracts outstanding at 31 March 2012 designated as hedges of expected future 
purchases in US dollars and Chinese renminbi for which the Group has ﬁrm commitments. The forward currency contracts 
are being used to hedge the foreign currency risk of the ﬁrm commitments.
The terms of the forward currency hedging contracts have been negotiated to match the terms of the commitments.
The cash flow hedges of the expected future purchases in 2012/2013 were assessed to be highly effective and as at 
31 March 2012 a net unrealised loss of £92,000 with related deferred tax credit of £Nil was included in other comprehensive 
income in respect of these hedging contracts.
31 March 2011
Carrying
amount
£000
Contractual
cash flows
£000
One year 
or less
£000
One to 
 two years
£000
Two to 
 ﬁve years
£000
More than 
ﬁve years
£000
Forward exchange contracts:
Liabilities 124 (6,666) (6,666) — — —
e) Market risk
Financial risk management 
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices 
will affect the Group’s income or the value of its holdings of ﬁnancial instruments.
The Group hedges a proportion, as deemed appropriate by management, of its UK subsidiaries’ sales and purchases 
of inventory denominated in foreign currency by entering into foreign exchange contracts. Such foreign exchange 
contracts typically have maturities of less than one year. 
The Group rarely hedges proﬁt translation exposure, since such hedges provide only a temporary deferral of the 
effects of movement in foreign exchange rates. Similarly, the Group does not hedge its long-term investments in 
overseas assets.
However, the Group holds loans that are denominated in the functional currency of certain overseas entities.
The Group’s exposure to foreign currency risk is as follows. This is based on the carrying amount for monetary 
ﬁnancial instruments except derivatives when it is based on notional amounts.
31 March 2012 Notes
Sterling
£000
Euro
£000
US dollar
£000
Other
£000
Total
£000
Cash and cash equivalents 19 2 1 176 2,989 3,168 
Trade receivables 18 5,528 2,463 4,716 4,359 17,066 
Other receivables 18 1,031 90 275 301 1,697 
Secured bank loans 19 (18,410) (6,282) (13,162) — (37,854)
Loan arrangement fees 19 122 — 248 — 370 
Finance leases 23 (87) — (39) — (126)
Asset backed loans 20 (3,853) (1,585) (29) — (5,467)
Bank overdrafts 19 (659) (1,319) (177) 210 (1,945)
Trade payables 24 (8,739) (2,017) (6,739) (4,881) (22,376)
Other payables 24 (537) (200) — — (737)
Financial liabilities at fair value 
through hedging reserve 23 (446) — — — (446)
Balance sheet exposure (26,048) (8,849) (14,731) 2,978 (46,650) 64 International Greetings plc Annual report and accounts 2012
29 Financial instruments continued
e) Market risk continued
Foreign currency risk
31 March 2011 Notes
Sterling
£000
Euro
£000
US dollar
£000
Other
£000
Total
£000
Cash and cash equivalents 19 2 80 743 1,060 1,885 
Trade receivables 18 7,208 3,006 3,613 3,539 17,366 
Other receivables 18 984 144 531 194 1,853 
Financial assets at fair value 
through income statement 18 — 80 — — 80 
Secured bank loans 19 (801) (7,069) (1,469) — (9,339)
Finance leases 23 (113) — (55) (7) (175)
Asset backed loans 23 (970) (3,479) — — (4,449)
Revolving credit facilities 23 (17,100) — (11,801) — (28,901)
Bank overdrafts 19 (219) (2,761) (767) 127 (3,620)
Other ﬁnancial liabilities held 
at amortised cost 23 (7,004) (1,432) (1,282) — (9,718)
Trade payables 24 (11,991) (2,577) (6,575) (2,907) (24,050)
Other payables 24 (1,115) (184) — (4) (1,303)
Financial liabilities at fair value 
through hedging reserve 23 (124) — — — (124)
Balance sheet exposure (31,243) (14,192) (17,062) 2,002 (60,495)
The following signiﬁcant exchange rates applied during the year, for conversion to sterling:
Average rate Reporting date spot rate
2012 2011 2012 2011
Euro 0.862  0.850  0.834  0.885 
US dollar 0.625  0.642  0.625  0.621 
Sensitivity analysis
A 10% weakening of the following currencies against sterling at 31 March 2012 would have increased equity and proﬁt 
or loss by the amounts shown below. This calculation assumes that the change occurred at the balance sheet date 
and had been applied to risk exposures existing at that date. This is translational exposure.
This analysis assumes that all other variables, in particular other exchange rates and interest rates, remain constant. 
The analysis is performed on the same basis for 31 March 2011.
Equity Proﬁt/(loss)
2012
£000
2011
£000
2012
£000
2011
£000
Euro 89  1,290  17  86 
US dollar 1,339  1,551  (560) (672)
On the basis of the same assumptions, a 10% strengthening of the above currencies against sterling at 31 March 2012 
would have decreased equity and proﬁt or loss by the following amounts:
Equity (Loss)/proﬁt
2012
£000
2011
£000
2012
£000
2011
£000
Euro (109) (1,577) (20) (105)
US dollar (1,637) (1,896) 684 882
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 65 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
29 Financial instruments continued
e) Market risk continued
Interest rate risk
Proﬁle
At the balance sheet date the interest rate proﬁle of the Group’s interest-bearing ﬁnancial instruments was:
Note
2012
£000
2011
£000
Fixed rate instruments
Financial liabilities (31,921) (6,195)
Variable rate instruments
Financial assets 3,168 1,885 
Financial liabilities (13,345) (40,114)
Loan arrangement fees 370 —
Net debt 20 (41,728) (44,424)
The ﬁxed rate borrowings above are shown after taking account of an interest rate swap (see note 20 loan 3 for details).
A change of 50 basis points (0.5%) in interest rates at the balance sheet date would have decreased equity and proﬁt 
or loss by the amounts shown below. This calculation assumes that the change occurred at the balance sheet date 
and had been applied to risk exposures existing at that date. 
This analysis assumes that all other variables, in particular foreign currency rates, remain constant and considers 
the effect on ﬁnancial instruments with variable interest rates, ﬁnancial instrument at fair value through proﬁt or 
loss. The analysis is performed on the same basis for 31 March 2011.
2012
£000
2011
£000
Equity
Increase — —
Decrease 51 191
Proﬁt or loss
Increase — —
Decrease 51 191
f) Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market conﬁdence 
and to sustain future development of the business. The Group is dependent on the continuing support of its bankers 
for working capital facilities and so the Board’s major objective is to keep borrowings within these facilities.
The Board manages as capital its trading capital, which it deﬁnes as its net assets plus net debt. Net debt is calculated 
as total debt (bank overdrafts, loans and borrowing as shown in the balance sheet), less cash and cash equivalents. 
The new banking facilities with our principal bank have covenants relating to interest cover , cash flow cover and leverage 
and our articles currently permit borrowings (including letter of credit facilities) to a maximum of four times equity.
Note
2012
£000
2011
£000
Net assets attributable to owners of the Parent Company 47,804 48,090
Net debt 19 (41,728) (44,424)
Trading capital 6,076 3,848
The main areas of capital management revolve around the management of the components of working capital 
including monitoring inventory turn, and months production or cost of sales outstanding, age of inventory, age of 
trade receivables, balance sheet reforecasting, monthly proﬁt and loss, weekly cash flow forecasts and daily cash 
balances. Major investment decisions are based on reviewing the expected future cash flows and all major capital 
expenditure requires sign off by the Group Chief Executive. There were no major changes in the Group’s approach 
to capital management during the year. A particular focus of the Group is leverage measured as the ratio of net 
debt to pre-exceptional EBITDA which is measured on a monthly basis. 66 International Greetings plc Annual report and accounts 2012
30 Operating leases
Non-cancellable operating lease rentals are payable as follows:
2012
£000
2011
£000
Less than one year 3,596 5,346
Between one and ﬁve years 11,749 12,950
More than ﬁve years 12,942 12,976
28,287 31,272
The Group leases a number of warehouse and factory facilities as well as vehicles and ofﬁce equipment under operating 
leases. The leases of warehouse and factory facilities typically have an option to renew at the end of the lease term 
and lease payments are subject to ﬁve-yearly rent reviews.
One of the leased properties has been sublet by the Group. The Sub lease has a period to run of less than a year 
with an option for the lessee to renew at the end of the lease term. Sub lease payments of £70,000 (2011: £73,000) are 
expected to be received during the ﬁnancial year.
During the year £4,057,000 was recognised as an expense in the income statement in respect of operating leases 
(2011: £4,422,000).
31 Capital commitments
At 31 March 2012, the Group had outstanding authorised capital commitments to purchase plant and equipment 
for £655,000 (2011: £43,000).
32 Related parties
2012
£000
2011
£000
Sales of goods:
AB Alrick – Hedlund 404  261 
Hedlunds Pappers Industri AB 81  22 
Festive Productions Ltd 72  18 
Mrs L Hedlund —  3 
Hedlund Import AB 4,645  3,844 
 5,202  4,148 
Purchase of goods:
AB Alrick – Hedlund 7 — 
Hedlunds Pappers Industri AB — 15
Hedlund Import AB — 4 
7 19 
Receivables:
AB Alrick – Hedlund 57 6 
Hedlunds Pappers Industri AB 7 2 
Festive Productions Ltd —  11 
Hedlund Import AB — 345 
Balance as at 31 March 2012 64  364 
Identity of related parties and trading
Hedlund Import AB and AB Alrick Hedlund are under the ultimate control of the Hedlund family. S A Hedlund is a Director 
of Hedlunds Pappers Industri AB which is under the ultimate control of the Hedlund family. Festive Productions Ltd is 
a subsidiary undertaking of Malios AG, a company under the ultimate control of the Hedlund family. Mrs L Hedlund 
is the wife of Mr S A Hedlund.
The above trading takes place in the ordinary course of business and on normal commercial terms.
Notes to the ﬁnancial statements (continued)
year ended 31 March 2012 67 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
32 Related parties continued
Other related party transactions
Directors of the Company and their immediate relatives have an interest in 49% (2011: 52%) of the voting shares 
of the Company. The shareholdings of Directors are shown in the Directors’ Report on pages 20 to 23. Following her 
resignation, S Tye exercised 300,000 options on 30 March 2012. No other shares were issued to Directors during 
the year (2011: Nil). 
During the previous year the Group was called upon to repay the mortgage of a former senior employee of the 
USA business upon his repatriation to the UK, according to a guarantee given by the Group about ﬁve years ago. 
The Group has purchased the property, which was sold during the current year.
Directors’ remuneration
2012
£000
2011
£000
Remuneration 1,054 1,181
Compensation for loss of ofﬁce 558 —
Pension contributions 173 90
Employer national insurance contributions on the above remuneration 137 96
1,922 1,367 68 International Greetings plc Annual report and accounts 2012
The Directors are responsible for preparing the Directors’ Report and the ﬁnancial statements in accordance 
with applicable law and regulations. 
Company law requires the Directors to prepare ﬁnancial statements for each ﬁnancial year. Under that law the 
Directors have elected to prepare the ﬁnancial statements in accordance with United Kingdom Generally Accepted 
Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Company law the Directors 
must not approve the ﬁnancial statements unless they are satisﬁed that they give a true and fair view of the state 
of affairs of the Company and of the proﬁt or loss of the Company for that period. In preparing those ﬁnancial 
statements, the Directors are required to: 
 select suitable accounting policies and then apply them consistently; 
 make judgements and estimates that are reasonable and prudent;
 state whether applicable UK Accounting Standards have been followed, subject to any material departures 
disclosed and explained in the ﬁnancial statements; and 
 prepare the ﬁnancial statements on the going concern basis unless it is inappropriate to presume that the 
Company will continue in business. 
The Directors are responsible for keeping adequate accounting records that are sufﬁcient to show and explain the 
Company’s transactions and disclose with reasonable accuracy at any time the ﬁnancial position of the Company 
and enable them to ensure that the ﬁnancial statements comply with the Companies Act 2006. They are also 
responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention 
and detection of fraud and other irregularities.
Statement of Directors’ responsibilities for the parent company 
ﬁnancial statements 69 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
We have audited the Parent Company ﬁnancial statements of International Greetings plc for the year ended 
31 March 2012 which comprise the Company Balance Sheet and the related notes 1 to 12. The ﬁnancial reporting 
framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards 
(United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the Company’s members, as a body , in accordance with Chapter 3 of Part 16 of the Companies 
Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we 
are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, 
we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, 
for our audit work, for this report, or for the opinions we have formed. 
Respective responsibilities of Directors and auditors
As explained more fully in the Directors’ Responsibilities Statement set out on page 68, the Directors are responsible for 
the preparation of the Parent Company ﬁnancial statements and for being satisﬁed that they give a true and fair view. 
Our responsibility is to audit and express an opinion on the Parent Company ﬁnancial statements in accordance with 
applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with 
the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the ﬁnancial statements
An audit involves obtaining evidence about the amounts and disclosures in the annual report and ﬁnancial statements 
sufﬁcient to give reasonable assurance that the ﬁnancial statements are free from material misstatement, whether 
caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Parent 
Company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of signiﬁcant 
accounting estimates made by the Directors; and the overall presentation of the ﬁnancial statements. In addition, we 
read all the ﬁnancial and non-ﬁnancial information in the Chairman’s Statement, Chief Executive’s Operational Review 
and Financial Review to identify material inconsistencies with the audited ﬁnancial statements. If we become aware 
of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on ﬁnancial statements
In our opinion the Parent Company ﬁnancial statements:
 give a true and fair view of the state of the Company’s affairs as at 31 March 2012;
 have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
 have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion:
 the information given in the Directors’ Report for the ﬁnancial year for which the ﬁnancial statements are 
prepared is consistent with the Parent Company ﬁnancial statements.
Independent auditors’ report 
to the members of International Greetings plc 70 International Greetings plc Annual report and accounts 2012
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report 
to you if, in our opinion:
 adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have 
not been received from branches not visited by us; or
 the Parent Company ﬁnancial statements are not in agreement with the accounting records and returns; or
 certain disclosures of Directors’ remuneration speciﬁed by law are not made; or
 we have not received all the information and explanations we require for our audit.
Other matter
We have reported separately on the Group ﬁnancial statements of International Greetings plc for the year ended 
31 March 2012.
Andy Clewer (Senior Statutory Auditor)
for and on behalf of Ernst & Young LLP , Statutory Auditor
Luton
29 June 2012
Independent auditors’ report (continued)
to the members of International Greetings plc 71 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
Notes
2012
£000
2011
£000
Fixed assets
Tangible assets 3 11 17 
Investments 4 61,109 61,084 
Total non-current assets 61,120 61,101 
Current assets
Debtors 5 3,528 2,517 
Cash at bank and in hand 8,544 — 
12,072 2,517
Creditors: amounts falling due within one year 7 (6,641) (21,551)
Net current assets/(liabilities) 5,431 (19,034)
Creditors: amounts falling due after more than one year 8 (26,842) — 
Net assets 39,709 42,067 
Capital and reserves
Called up share capital 8 2,750 2,698 
Share premium account 9 3,140 3,046 
Capital redemption reserve 9 1,340 1,340 
Merger reserve 9 17,164 17,164 
Proﬁt and loss account 9 15,315 17,819 
Equity shareholders’ funds 39,709 42,067
International Greetings plc is registered in England and Wales, number 1401155.
These ﬁnancial statements were approved by the Board of Directors on 27 June 2012 and were signed on its behalf by:
P Fineman A Lawrinson
Director Director
The notes on pages 72 to 76 form part of these ﬁnancial statements.
Company balance sheet
as at 31 March 2012 72 International Greetings plc Annual report and accounts 2012
1 Accounting policies – Company
Basis of preparation
The ﬁnancial statements have been prepared in accordance with applicable accounting standards (UK Generally Accepted 
Accounting Practice) and under the historical cost accounting rules. The following accounting policies have been applied 
consistently in dealing with matters which are considered material in relation to the ﬁnancial statements.
Under Section 408 of the Companies Act 2006 the Company is exempt from the requirement to present its own proﬁt 
and loss account and under Financial Reporting Standard 1 the Company is exempt from the requirement to prepare 
a cash flow statement on the grounds that a parent undertaking includes the Company in its own published consolidated 
ﬁnancial statements.
The Company has taken advantage of the exemption in FRS 8 not to disclose transactions with its wholly 
owned subsidiaries.
The Company has taken advantage of the exemption in paragraph 2d of FRS 29 Financial Instruments: Disclosures 
and has not disclosed information required to that standard as the Group’s consolidated ﬁnancial statements, in which 
the Company is included, provide equivalent disclosures for the Group under IFRS 7 Financial Instruments: Disclosures.
Investment in subsidiary undertakings
The Company’s investment in subsidiary undertakings is stated at cost less any provision for impairment.
Property, plant and equipment and depreciation
Depreciation is provided by the Company to write off the cost less the estimated residual value of tangible property, 
plant and equipment by equal instalments over their estimated useful economic lives as follows:
 leasehold land and buildings life of lease
 ofﬁce equipment   three to ﬁve years
 motor vehicles   four years
Foreign currencies
Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. 
Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling 
at the balance sheet date and the gains or losses on translation are included in the proﬁt and loss account.
Leases
Where the Company enters into a lease which entails taking substantially all the risks and rewards of ownership of an 
asset, the lease is treated as a “ﬁnance lease”. The asset is recorded in the balance sheet as a tangible ﬁxed asset and 
is depreciated over its estimated useful life or the term of the lease, whichever is shorter. Future instalments under such 
leases, net of ﬁnance charges, are included within creditors. Rentals payable are apportioned between the ﬁnance element, 
which is charged to the proﬁt and loss account on a straight-line basis over the life of the lease, and the capital element 
which reduces the outstanding obligation for future instalments.
All other leases are accounted for as “operating leases” and the rentals payable are charged to the proﬁt and loss 
account on a straight-line basis over the life of the lease.
Share-based payments
The cost of equity-settled transactions with employees is measured by reference to the fair value at the date on which they are 
granted and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees 
become fully entitled to the award. Fair value is determined by an external valuer using an appropriate pricing model. 
In valuing equity-settled transactions, no account is taken of any service and performance (vesting conditions), other than 
performance conditions linked to the price of the shares of the Company (market conditions). Any other conditions which are 
required to be met in order for an employee to become fully entitled to an award are considered to be non-vesting conditions. 
Like market performance conditions, non-vesting conditions are taken into account in determining the grant date fair value.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon 
a market vesting condition or a non-vesting condition, which are treated as vesting irrespective of whether or not the 
market vesting condition or non-vesting condition is satisﬁed, provided that all other non-market vesting conditions 
are satisﬁed.
At each balance sheet date before vesting, the cumulative expense is calculated; representing the extent to which the 
vesting period has expired and management’s best estimate of the number of equity instruments that will ultimately 
vest. The movement in cumulative expense since the previous balance sheet date is recognised in the income statement, 
with a corresponding entry in equity.
Notes to the Company ﬁnancial statements
year ended 31 March 2012 73 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
1 Accounting policies – Company continued
Share-based payments continued
Where the Company grants options over its own shares to the employees of its subsidiaries it recognises an increase 
in the cost of investment in its subsidiaries equivalent to the equity-settled share-based payment charge recognised in 
its subsidiaries’ ﬁnancial statements with the corresponding credit being recognised directly in equity. Amounts recharged 
to the subsidiary are recognised as a reduction in the cost of investment in subsidiary. If the amount recharged exceeds 
the increase in the cost of investment the excess is recognised as a dividend to the extent that it reflects post-acquisition 
proﬁts of the subsidiary. 
Dividends on shares presented within shareholders’ funds
Dividends unpaid at the balance sheet date are only recognised as a liability at that date to the extent that they 
are appropriately authorised and are no longer at the discretion of the Company. Unpaid dividends that do not meet 
these criteria are disclosed in the notes to the ﬁnancial statements.
Deferred tax
The Company takes into account taxation deferred because of timing differences between the treatment of certain 
items for taxation and accounting purposes.
Full provision without discounting is made for all timing differences which have arisen, but not reversed at the 
balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable proﬁts will be available 
against which the asset can be utilised.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in 
which the timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance 
sheet date.
Employee beneﬁts
Pensions
The Company operates a deﬁned contribution personal pension scheme. The assets of this scheme are held 
separately from those of the Company in an independently administered fund. The pension charge represents 
contributions payable by the Company to the fund.
2 Dividends
There were no dividends paid in the year (2011: Nil).
3 Tangible assets
Fixtures and
ﬁttings
£000
Motor 
vehicles
£000
Software
£000
Total
£000
Cost
Balance at 1 April 2011 338 20 9 367 
Additions 2 — 1 3 
Disposals (138) (20) — (158)
Balance at 31 March 2012 202 — 10 212 
Depreciation and impairment
Balance as at 1 April 2011 (327) (20) (3) (350)
Depreciation charge for the year (5) — (3) (8)
Disposals 137 20 — 157 
Balance at 31 March 2012 (195) — (6) (201)
Net book value
At 31 March 2012 7 — 4 11 
At 31 March 2011 11 — 6 17 74 International Greetings plc Annual report and accounts 2012
4 Investments
Shares in subsidiary undertakings
Cost
£000
Impairment
£000
Net book
value
£000
At 1 April 2011 63,744 (2,660) 61,084 
Share options charge relating to subsidiary employees 25 — 25 
Balance at 31 March 2012 63,769 (2,660) 61,109
The main trading subsidiary and associate undertakings of the Company are as follows:
Company
Country of
incorporation
Principal
activity
Percentage of
ordinary
shares held
Subsidiary
International Greetings  
(UK) Limited
Great Britain Manufacture of gift wrapping paper, 
bows and ribbons
100
Anker International PLC Great Britain Distribution of photo albums, frames, 
stationery and Christmas related products
100
Alligator Books Ltd Great Britain Children’s book publisher and stationery 100
Scoop Designs Limited Great Britain Packaged gifts 100
International Greetings USA, Inc. USA Manufacture of gift wrapping paper, 
bows and ribbons
100
International Greetings  
Asia Limited
Hong Kong Trading company 100
The Shenzhen Gift International 
Greetings Company Limited
China Manufacture of Christmas crackers 100 (indirect holding)
The Huizhou Gift International 
Greetings Company Limited 
China Manufacture of Christmas crackers 100 (indirect holding)
Hoomark B.V. Netherlands Manufacture of gift wrapping paper 100 (indirect holding)
Anchor International BV Netherlands Distribution of photo albums, frames, 
stationery and Christmas related products
100 (indirect holding)
Artwrap Pty Ltd Australia Design and distribution of giftwrap 
and greetings products
50
Artwrap Pty Ltd has been accounted for as a subsidiary from 1 August 2009 as a result of the Group having the option 
to purchase the remaining 50% share.
5 Debtors
2012
£000
2011
£000
Trade debtors 2 3 
Amounts owed by Group undertakings 1,802 1,301 
Other debtors 545 502 
Prepayments 384 210 
Corporation tax — 5 
Deferred tax assets (see note 6) 795 496 
3,528 2,517 
Included within debtors is £Nil (2011: £Nil) expected to be recovered in more than twelve months.
The deferred tax asset in the Company is recoverable after more than one year.
Notes to the Company ﬁnancial statements (continued)
year ended 31 March 2012 75 International Greetings plc Annual report and accounts 2012
Overview Business review Governance Financials
6 Deferred tax asset
2012
£000
2011
£000
Difference between accumulated depreciation and capital allowance 67 84 
Tax loss carried forward 495 126 
Other timing differences 233 286 
795 496 
7 Creditors: amounts falling due within one year
2012
£000
2011
£000
Bank loans, overdrafts and revolving credit facility 3,050 17,393 
Loan arrangement fees (122) — 
Trade creditors 495 1,292 
Amounts owed to undertakings 1,463 1,104 
Other taxes and social security — 65 
Other creditors 840 797 
Accruals 915 900 
6,641 21,551 
Refer to note 20 of the Group’s ﬁnancial statements for more details of the terms of the bank borrowings.
8 Creditors: amounts falling due after more than one year
2012
£000
2011
£000
Bank loans 26,842 —
9 Share capital
2012
£000
2011
£000
Allotted, called up and fully paid
55,006,625 (2011: 53,966,625) ordinary shares of 5p each 2,750 2,698 
Refer to note 25 of the Group’s ﬁnancial statements for details of movements and note 28 for details of share options.
10 Reconciliation of movements in shareholders’ funds
Share
capital
£000
Share 
premium
account
£000
Capital
redemption
reserve
£000
Merger 
reserve
£000
Proﬁt and
loss account
£000
Equity
shareholders’
funds
£000
At 1 April 2010 2,608 3,006 1,340 16,216 18,543 41,713 
Loss for the year — — — — (833) (833)
Options exercised 16 40 — — — 56 
New shares issued on acquisition of subsidiaries 74 — — 948 — 1,022 
Share-based payments — — — — 42 42 
Share options charge relating 
to subsidiary employees — — — — 67 67 
At 1 April 2011 2,698 3,046 1,340 17,164 17,819 42,067 
Loss for the year — — — — (2,547) (2,547)
Options exercised 52 94 — — — 146 
Share-based payments — — — — 18 18 
Share options charge relating 
to subsidiary employees — — — — 25 25
At 31 March 2012 2,750 3,140 1,340 17,164 15,315 39,709 
Within the proﬁt and loss account is a cumulative amount of £152,000 (2011: £127,000) which is unrealised in respect 
of share options granted to subsidiary employees. 76 International Greetings plc Annual report and accounts 2012
11 Share-based payments
Please see note 28 of the Group’s ﬁnancial statements for details of share-based payments.
12 Contingencies
The Company has given, together with certain of its subsidiary undertakings, an unlimited composite joint and several 
guarantee in respect of the bank loans and overdrafts of itself and its subsidiaries. The total of this guarantee at the 
year end, in relation to the Company only, was £13,827,000 (2011: £14,810,000) in excess of the amount dealt with in the 
Company’s ﬁnancial statements.
Notes to the Company ﬁnancial statements (continued)
year ended 31 March 2012  Belgrave House
Hatﬁeld Business Park
Frobisher Way
Hatﬁeld
Hertfordshire AL10 9TQ