annual report 2009 Performance HigHligHts ............................................................ 01
cHairman’s s tatement .................................................................. 02
Business o verview....................................................................... .04
service o verview........................................................................... 06
market o verview.......................................................................... .08
cHief executive’s s tatement ........................................................ .10
financial review .......................................................................... .14
corPorate social resPonsiBility s tatement ........................... .16
Board of directors ..................................................................... . 17
directors’ rePort .......................................................................... 18
corPorate governance s tatement ........................................... .22
statement of directors’ resPonsiBilities ................................ 23
rePort of directors’ remuneration ....................................... 24
indePendent a uditors rePort ................................................... . 25
consolidated financial statements .........................................	 26
notes to tHe consolidated financial statements ................ 	 30
comPany Balance sHeet ..............................................................	 54
notes to tHe financial statements of tHe comP any............ 55
glossary ......................................................................................... 61
contents
Adv anc ed	C omput er	So f tw ar e	Plc	”A CS”	aims	t o	be	the	le ading	c onsolida t or	o f	so f tw ar e	servic es	in	the	
Primary	C ar e	sect or .
	 The	first	st ep	w as	the	int egr a tion	o f	Adastr a	and	the	sec ond	is	the	ac quisition	o f	BSG.	The	Gr oup	is	no w	
poised	t o	de v elop	its	str ong	position	in	a	sect or	tha t	is	fr agment ed	and	go v ernment -back ed.
About our business
acs is a leading provider of software and it services 
to the Primary care sector, with the goal of improving 
patient flows and care. its market leading patient 
management system currently services more than 
95% of out-of-Hours Primary care operational hubs 
and 50% of nHs w alk-in centres in england. 
adastra’s software supports 14 million patient cases 
every year and delivers the information on those 
cases to the relevant recipients within the nHs .
Bsg provides hosting and it outsourcing services 
and its integration into acs will provide the hosting 
platform to bring Primary care hosted products more 
quickly to market.
acs’ strategy is to grow both organically and by 
acquisition. our opportunities for organic growth at 
adastra include:
P oly clinic s	and	W al k -in	C entr es » and other 
organisations in the nHs that treat patients on case 
by case basis
iNurse: » a mobile offering to community nurses, 
health care workers and charities
End- o f -Lif e	R egist er: » allows the treatment 
preferences of terminally ill patients to be registered
Summary	C ar e	R ec or d: » the ability for approved 
health workers to access summary notes of a 
patient’s clinical background 1
HIGHLIGHTS ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
Gr oup	R esults	f or	the	14	months	t o	28	F ebruary	2009:
Cash of £14.7m at 28 February 2009  »
Revenue of £7.3m  »
Adjusted EBITDA* of £2.1m »
Profit before tax of £1.1m »
Adastr a	R esults	f or	the	six	months	t o	28	F ebruary	2009:
r evenue of £7.3m a 29% year on year increase  »
adjusted eBitda* of £2.6m a 142% year on year increase  »
adjusted eBitda* margin increased to 36%  »
Profit before tax of £2.2m »
Successful acquisition, restructuring and growth of first  »
acquisition, Adastra 
Developed and piloted new products including iNurse,   »
End-of-Life Register and Summary Care Record
Continuing to pursue strategic acquisition opportunities »
Oper a tional 	 impr o v ements 	 e x ecut ed 	 a t 	 Adastr a 	 sinc e 	 ac quisition:
focused sales and marketing plans  »
significantly increased efficiencies within service teams »
Announced Offer for BSG, hosting and IT service  »
provider to deliver new product offerings more quickly
 Announced conditional new equity issue of £43.575m »
We have a strong foundation for achieving both 
organic and acquisitive growth and are delighted 
with the start we have made.
financial highlights
operational highlights
current trading highlight
“ W ear edelight edwiththepr ogr esstha tAdastr ahasmadesinc eac quisitionandinthefirstsixmonthsw eha v emor e
thandoubleditsmonthlyEBITD Arunr a t ec ompar edt othepr e viousfinancialy e ar .Adastr a ’ sle adershipinPrimaryC ar e
wil lbestr engthenedwiththelauncho fne wpr oductsandthehostingandsupportf acilitieso fBSG.Inaddition,our
e xpect edc ashpositiono f£55m(f ol lo wingthec onditionalequityissueinJune09)plac esusinav erystr ongposition.”
Vin	Murria, ceo, advanced computer software Plc. 
*adjusted eBitda is defined as profit before interest, taxation, depreciation, amortisation, one-off restructuring and transaction costs and sharebased charges.
£55m
casH in Hand 
exPected june 2009
65%
recurring revenues
80%+
gross margin 2
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 CHAIRMAN’S STATEMENT
A C S 	 h a s 	 h a d 	 a 	 g r e a t 	 fi r s t 	 s i x 	 m o n t h s .	
S i n c e 	 A u g u s t 	 2 0 0 8 , 	 w e 	 h a v e 	 b u i l t	
a 	 s o l i d 	 f o u n d a t i o n 	 f o r 	 o r g a n i c 	 a n d	
a c q u i s i t i o n 	 g r o w t h 	 w i t h 	 t h e 	 s u c c e s s f u l	
int egr a tion 	 o f 	 Adastr a 	 and 	 the 	 r ec ent	
announc ement 	 t o 	 ac quir e 	 BSG.	
adastra is the market leader in the 
provision of software and services 
for the management of out-of-Hours 
(ooH) and unscheduled healthcare in 
the nHs . Bsg provides hosting and it 
services which will support adastra’s 
new product offerings to the health care 
market as well as bring other not-for-
profit customers to the group.
adastra, our first acquisition, was 
very successfully integrated and we 
significantly improved organic growth 
opportunities and we doubled monthly 
eBitda within six months (compared to 
adastra’s prior financial year). 
on acquisition of adastra in august 
2008, our priorities were to implement 
proven sales methodologies, focus the 
marketing strategy, prioritise product 
development to where demand is 
highest, and implement efficient 
processes, particularly across product 
training and service utilisation. 
 
 
 
adastra is building on its core ooH 
business (which includes nHs direct 
and nHs24) and has developed organic 
solutions for other new Primary care 
markets, including walk-in centres, 
polyclinics, and community nurses. 
three new offerings based on the core 
software have been piloted and are 
ready for launch:
iNurse:	 » a mobile solution for 
district nurses, palliative care and 
other community workers
End- o f -Lif e	R egist er:	 » allows the 
treatment preferences of terminally ill 
patients to be registered 
Summary	C ar e	R ec or d: » instant access 
to a patient’s basic health data to help 
to avoid misdiagnosis 
on 8 may 2009, we announced the 
intention to acquire Bsg a managed 
services company that provides hosting 
and outsourcing services to small and 
medium size businesses. Bsg’s services 
will support other offerings in the group 
in particular, inurse and end-of-l ife 
r egister, allowing adastra to bring these 
products to market more quickly and 
with a considerably experienced team. 
 
 
the acs management team believe 
that the combination of adastra and 
Bsg’s hosting services creates a very 
strong platform on which we can now 
build. we are actively identifying further 
businesses to acquire and our selective 
criteria include: strong products and 
services that can further meet the 
needs of Primary care customers 
or provide new channels to market 
for existing products; high levels of 
recurring revenues; the opportunity to 
enhance shareholder value by improving 
efficiencies in a similar way to adastra.
i believe we have an exciting 
opportunity. 
 
Michael	Jackson
chairman
5 june 2009
Chairman’s statement
“iNursewil laddr essanestima t edmark e t
o f65 ,000c ommunityhe althw ork ers .”
“TheNHSinEnglandspends£3.6bn
onITannual ly .” 3
CHAIRMAN’S STATEMENT ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
The Board has been delighted with the progress 
made at Adastra following the acquisition.  
In less than six months, the monthly EBITDA run 
rate has more than doubled through focus on 
sales, marketing and efficiencies.
Market opportunity: Primary Care
ACUTE
AMBULANCE
MENTAL HEALTH
FOUNDATION
CARE
Primary Care (152)
NHS
TRUSTS
DEPARTMENT OF HEALTH
STRATEGIC HEALTH 
AUTHORITIES (10)
CFH
control 80% of nHs budget »
first port of call (non-emergencies) »
including walk-in-centres, nHs   »
direct, dentists, mental health, 
opticians, pharmacies
national Programme for it (nPfit) »
awarded lsP contracts: now just B t   »
and csc
deliver better, safe care to patients   »
by improving computer systems  
and services
glossary of terms: page 61 4
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 BUSINESS OVERVIEW
Business overview
advanced computer software Plc (acs) 
is a leading provider of software to the 
Primary care sector. its market leading 
patient management system currently 
services more than 95% of out-of-Hours 
Primary care operational hubs’ and 50% 
of nHs w alk-in centres in england. a 
secondary product automates the flow of 
information between the national nurse 
Helpline services (nHs direct, nHs24 
and nHs w ales) and the operational 
hubs of the Primary care trusts. 
adastra’s software is licensed to more 
than 5,000 seats and transacts 14 
million patient episodes every year and 
interoperates with more than 100 other 
it systems serving both the Primary c are 
and the acute parts of the nHs , making 
it a critical component of the Primary 
care sector.
acs occupies a strategically important  
niche in the it framework of the nHs , 
from which it intends to expand through 
a strategy of product innovation, 
selective acquisitions and/or technical 
collaborations, thus consolidating a 
fragmented market.  
By broadening its products and services, 
the acs group aims to improve the 
flow of patient information throughout 
Primary care using, where possible, a 
single view of the patient record. 
at the same time, acs’ strategy is 
designed to maximise opportunities for 
cost savings, shared r&d and cross-
selling, whilst aligning with recent 
changes in nHs it procurement that 
increase the purchasing power of the 
Primary care segment.
MARTKET oppoRTuniTiEs
GP PRACTICES
COMMUNITY SERVICES
DISTRICT NURSES
MINOR INJURIES UNITS
POLYCLINICS
URGENT CARE CENTRES
WALK-IN CENTRES
OUT OF HOURS
AMBULANCE TRUST
ACCIDENT & EMERGENCY
NHS HOSPITAL TRUST
ACUTE PRIMARY CARE
ACQUISITION OPPORTUNITIES
ORGANIC GROWTH CURRENT BASE
95% of PCT hubs
50% of Walk-in Centres
glossary of terms: page 61 5
BUSINESS OVERVIEW ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
acs occupies a strategically 
important niche in the it framework 
of the nHs , from which it intends 
to expand through a strategy 
of product innovation, selective 
acquisitions and/or technical 
collaborations, thus consolidating a 
fragmented market.
hisToRy
acs was admitted to aim in october 
2006 to acquire and manage companies 
with opportunities for consolidation. 
in august 2008, the Board identified 
the opportunity to become a leading 
provider of software and services to the 
Primary care and unscheduled sectors 
of the nHs through the acquisition 
of adastra. a t the same time, drury 
lane c apital Plc changed its name to 
advanced computer software Plc and 
raised £14.6m to fund future expansion. 
acs announced on 8 may 2009 its 
intention to acquire Business systems 
group Holdings Plc (Bsg). Bsg is 
a managed services company that 
provides hosting and outsourcing 
services and will allow adastra’s new 
hosted products (inurse and end-of-
l ife r egister in particular) to be rolled 
out more quickly. in addition, Bsg’s 
technically qualified and experienced 
staff and its suite of managed services 
and training offerings will bring 
significant cross selling opportunities. 
 
for example, adastra will now be able 
to offer to the nHs further training 
services such as sharePoint.
on 21 may 2009, acs announced  
that it had conditionally raised 
£43.575m in new equity to support  
its acquisition programme. A CS	pr o vides	so f tw ar e	and	servic es	
t o	the	Primary	C ar e	mark e t .	With	the	
addition	o f	BSG,	these	servic es	wil l	
include	hosting ,	IT	ne tw ork	design	and	
deplo yment	c apabilities.	C ust omers	
wil l	include	businesses	in	bo th	the	
no t - f or -pr ofit	and	c ommer cial	sect ors.
AdAsTRA
adastra’s core software is configured for 
each customer to fit their own needs 
and is used in many environments. 
the software is used throughout the 
uk nHs (as well as in ireland and 
the netherlands) in many different 
environments, including:
GP 	 Out - o f -Hours: adastra’s software 
was originally developed to address the 
needs of gPs providing health care during 
the night (out-of-Hours). By working 
together to form teams, each gP can 
ensure health care to their own patients 
but each gP does not personally need to 
be on-call as regularly. adastra supports 
95% of the out-of-Hours operations.
W al k -in 	 C entr es: the nHs created w alk-in 
centres as a way of providing quick 
and efficient health care to patients in 
whatever region they were and without 
waiting for a gP appointment. Patients 
are served on a first-come first-served 
basis and walk-in centres are usually 
nurse-led. some of the walk-in centres 
are now becoming Polyclincs (see below).
Ur gent	C ar e	F r ont -Ends: emergency 
care departments in hospitals are often 
visited by patients with non-urgent 
health problems (for example, a simple 
headache). adastra’s software allows 
these cases to be filtered from the 
urgent ones and managed separately 
and efficiently and not taking vital 
resources from emergency care.
P oly clinic s: the nHs announced in 2008 
the creation of up to 150 Polyclinics 
(also known as gP-led Health centres, 
equitable access centres or darzi clinics) 
following a review by lord d arzi. these 
centres are single locations where 
multiple nHs services can be accessed, 
for example, gPs, pharmacy, blood 
testing and nurse appointments. 
C al l	C entr es	&	24-Hour	Help	Lines: 
adastra’s software supports the 
nHsdirect, nHs24 and nHs w ales 
call centres and other single point of 
access organisations. for example, a Pct 
wishing to provide one phone number 
for health care support can use adastra’s 
software to manage the cases and to 
distribute the information back to the 
patient’s own gPs and other appropriate 
centres as necessary.
Minor	Injuries	Units: in england there 
are 225 minor injury units where a 
patient with a non-urgent injury can 
go to be treated. the concept is similar 
to the walk-in centres but minor injury 
units tend to have gP back-up and 
deal mainly with injuries (for example, 
superficial cuts) rather than general 
health issues.
The	 Home: customers providing at-home 
health support (for example, transmitting 
sugar level data from a diabetic patient 
for analysis at a central point) can use 
adastra’s software to manage patient 
information and any clinical actions that 
need to be taken, such as a nurse visit.
Mobile	D a ta: adastra offers a toughened 
laptop solution that gPs and other 
clinicians can use to connect to a central 
base and work from home remotely 
from any other location. the laptops 
and the connectivity are nHs security 
compliant and provide flexibility in 
health care provision.
.
New Products
iNurse: adastra’s inurse is a mobile 
hand-held unit that allows nurses 
or other community care workers to 
receive work schedules, instructions 
and patient information and to send 
feedback once a visit to a patient is 
complete. the inurse product is a new 
offering and the pilot test in derby 
resulted in significant customer benefits 
including extra patient visits, better 
nurse security and more timely and 
accurate recording and communication 
of patient care information.
End- of -Lif e 	 R egister: Patients who 
have terminal illnesses often have 
personal preferences for treatment, 
such as the desire to be or not be 
resuscitated or to die at home. in 2008, 
the nHs in england announced that all 
Pcts should implement an end-of-l ife 
r egister to log each patient’s wishes 
so that the nHs best serves them. 
adastra offers a hosted facility based 
on its core software that allows Pcts 
to quickly implement such a register, 
giving access to authorised health 
workers and linking it back to their 
current adastra infrastructure.
6
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 SERVICE OVERVIEW
Service overview
The Derby PCT 
pilot of iNurse 
increased nurse 
visits by 1 - 2 
per day
glossary of terms: page 61 Summary 	 C ar e 	 R ec or d 	 (SCR): adastra has 
worked with cf H to develop the ability to 
see a patient’s scr during a patient call/
visit. for example, a doctor could see 
on screen, without having to ask, that 
a patient calling is allergic to antibiotics 
and had a heart attack two years ago. 
r olling out the scr has been one of 
the major goals of cf H and adastra’s 
software can provide the information 
either from the central repository (the 
“spine”) or directly via web-access to 
gP-run systems such as emis.
Additional Services
Har dw ar e 	 and 	 Netw orking: adastra 
designs and deploys the networking 
infrastructure needed by customers to 
implement the adastra software. the 
benefits to the customer include having 
one supplier with full responsibility, 
an infrastructure best adapted to the 
adastra software and the benefit of up 
to date technical knowledge.
Servic e 	 Support : adastra provides 
support services 24hours, 7 days week 
every week of the year. any issue 
raised by customers is dealt with in a 
professional and efficient manner with 
the objective of solving the issue as 
quickly and smoothly as possible.
Pr oject 	 Management : a team of 
project managers plan and manage 
the implementation of new and/or 
upgraded software into a customer’s 
working environment and support that 
customer through go-live.
T r aining: a dedicated team of trainers 
provide on-site training for all customer 
contacts. the training covers clinical 
and non-clinical user functionality 
and reporting for nHs reporting 
requirements. 
History of Adastra
the story of adastra began in 1992 
when lynn woods, now executive 
advisor to the acs Board, was appointed 
to manage the south east kent 
association of doctors on c all (seadoc), 
based in folkestone. seadoc was one 
of many gP co-operative organisations 
formed across the uk to provide co-
ordinated (out-of-Hours) services.
seadoc quickly recognised that a 
computer system would be needed to 
manage the high volume of patient 
calls electronically. with no suitable 
software product available for use by 
co-operatives, seadoc commissioned 
a system to its own specification. 
james Berry, a 19 year old computer 
sciences student at the university of 
southampton, was asked to tackle the 
project, and in december 1993 james 
produced his first version of what was 
to become adastra. it was an immediate 
success and adastra merged with rival 
provider owl software in may 2002. 
in august 2008, acs acquired adastra.
BsG
Bsg is a managed services company 
that designs, deploys and operates  
it solutions to small and medium  
size businesses. Bsg offers four  
main services:
Managed 	 Servic es: from utility 
functions, such as email, monitoring & 
backup, through to the outsourcing of an 
entire it environment for a customer
Applications 	 Solutions: application 
development and consultancy, using a 
blended resourcing model of on-shore 
consultancy & project management and 
off-shore development 
Infr astructur e 	 Solutions: working with 
tier 1 vendors to design and deploy 
hardware and network solutions to  
help customers achieve more from their 
it investment
T r aining 	 Servic es: end-user application 
and technical training adapted to the 
needs of each customer, for example, 
sharePoint training.
History of BSG
formed in 1987, Bsg began its trading 
history as an it reseller, selling hardware 
and software to its clients in london and 
the south east.
in 1996, whilst most of the reseller 
community continued to focus on 
hardware, Bsg made the strategic 
decision to focus on managed services 
as a core part of the business, offering 
managed and hosted data centre 
solutions to its customers. Based on 
strong product offerings, a strong focus 
on customer satisfaction and three small 
acquisitions, Bsg grew to a business 
generating revenues of over £13m in 
its core managed services business and 
£18m in infrastructure sales.
on 8 may 2009, acs announced its 
intention to acquire Bsg. the acquisition 
will allow acs to offer hosting and 
other support services to its Primary 
care customers and bring new adastra 
solutions, such as inurse and end-of-life 
r egister, to market more quickly.
7
SERVICE OVERVIEW ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
Adastra software 
supports 14 million 
patient episodes 
every year – 
equivalent to three 
Wembley Stadium 
crowds each week.
“A t	the	Thorndik e	Sur gery	w e	c ar e	f or	o v er	13 ,000	pa tients.	Ur gent	c ar e ,	when	the	
sur gery	is	shut ,	is	pr o vided	b y	Medw a y	On	C al l	C ar e	who	use	Adastr a.	It	is	v ery	
e asy	t o	pr o vide	c ontinuing	c ar e	f or	our	pa tients	the	ne x t	da y	as	al l	the	inf orma tion	
fr om	an y	c ontacts	a t	night	flo w	aut oma tic al ly	fr om	Adastr a	int o	the	document	
management	f acility	in	our	sur gery ’ s	c omput er	sy st em.	When	seeing	the	pa tient	f or	
an y	f ol lo w	up	c onsulta tion	I	kno w	e x actly	wha t	tr e a tment	the	pa tient	has	r ec eiv ed	
and	c an	then	manage	the	pa tient	mor e	appr opria t ely .”
dr jash tanday, senior Partner, dame sybil thorndike surgery, r ochester, kent. 8
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 MARKET OVERVIEW
In England, the 
Primary Care  
Trusts control 
80% 
of the  
£90bn  
annual NHS budget 
and spend  
£3.6bn  
on IT annually.
A CS	f ocuses	on	deliv ering	so f tw ar e	and	
servic es	t o	the	UK	Primary	C ar e	sect or .
in the uk , the department of Health 
(dH) is responsible for delivering 
healthcare and delegates this 
responsibility to the national Health 
service (nHs). the nHs has separate 
agencies in england, wales, scotland 
and ireland which each have their own 
organisations and initiatives. in general 
terms, health care is split into two types: 
Primary care and acute. 
acute care principally relates to a 
hospital environment.
Primary care is the delivery of first hand 
health care to patients and includes:
scheduled care, for example an  »
appointment with a gP or a dentist 
and, 
unscheduled care which includes out- »
of-Hours (ooH), for example, a visit 
from a doctor at 3am at home and 
in-Hours, for example a visit to a walk-
in-centre at midday.
in england, Primary care is delivered 
by the 152 Primary care trusts (Pcts) 
which report into the 10 strategic Health 
authorities (sHas) who in turn report to 
the dH.
the responsibility for it within the 
nHs is delegated to the four country 
agencies. in england, the nHs it 
agency is connecting for Health (cfH) 
which reports directly to the dH and 
was created in 2005. cfH is responsible 
for delivering the national Programme 
for it (nPfit). 
the nPfit was launched in 2002 and 
aimed to create a single electronic 
records system for 50 million patients in 
england by 2010, as well as connecting 
hospitals to gP surgeries across the 
country. contracts were awarded to Bt 
to build a secure nHs network (the n3 
network) and the spine (a centralised 
depository for patient care records and 
other centralised information). five 
further contracts (the local service 
Providers or lsPs) were awarded to four 
large it outsourcers (Bt, csc , fuijitsu and 
accenture) to deliver single systems in 
the acute environment and link gPs to 
hospitals by the deadline of 2010. 
By 2009, both fujuisu and accenture 
had pulled out and the projects were 
suffering long delays and overspends. 
according to the times (february 
2009), the total project will cost 
£12.7bn compared to the original 
estimate of £2.3bn and has been 
delayed to 2014/15. in april 2009, cf H 
gave the ls Ps until november 2009 to 
show real progress or the nPfit would 
be reviewed.
doctors in england (gPs) did not wish to 
be forced to change their it systems to 
the nPfit systems and in 2008, gPs and 
cfH agreed that gPs could choose their  
systems from an approved list of it  
suppliers (the gPsoc agreement). under  
this agreement, gPs have continued 
using their own it systems.
Market overview
adastra serves 
95%
 of out-of-Hours providers  
in england 9
MARKET OVERVIEW ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
it suppliers to the nHs, such as adastra, 
have continued to deliver their solutions 
and have continued to link to each 
other’s systems to provide continuity of 
records and patient flow. By so doing, 
the smaller suppliers in many cases have 
delivered cf H goals quicker and in a less 
costly way than the nPfit programme. 
this is the case of adastra’s summary 
care r ecord (scr) functionality tested 
and approved by cfH in january 2009.
acs aims to provide software and 
services to the nHs and to bring 
efficiencies to Primary care operations. 
in particular, acs intends to bring 
functionality already tried and tested in 
other markets to the nHs . one example 
is inurse which is a field-management 
capability adapted to the clinical needs 
of adastra’s customers.
the addressable market is large and the 
it spend of the nHs in england is £3.6 
bn per year (im+t survey 2008). this it 
spend is part of the £70 bn plus budget 
of the english Pcts and of the £102 bn 
budget of the uk nHs in total.
adastra serves 
50%
 of the walk-in-centres  
in england ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 CHIEF EXECUTIVE’S SATEMENT
T h e 	 o b j e c t i v e 	 o f 	 A C S 	 i s 	 t o 	 b e 	 t h e	
l e a d i n g 	 c o n s o l i d a t o r 	 o f 	 s o f t w a r e 	 a n d	
s e r v i c e s 	 t o 	 t h e 	 P r i m a r y 	 C a r e 	 m a r k e t 	 a n d	
in 	 our 	 first 	 six 	 months 	 w e 	 ha v e 	 built 	 a 	
str ong 	 f ounda tion 	 t o 	 achie v e 	 this.
since creation in august 2008 we have 
successfully integrated adastra and 
announced our intention to acquire Bsg. 
the combination of adastra and Bsg 
bring significant opportunities for organic 
growth and form a substantial platform 
for further acquisitions.
pRiMARy CARE 
acs serves principally the uk Primary 
care sector which is responsible for  
the delivery of first hand health care  
to patients. 
acs ’ software products focus on Primary 
care but are also applicable to charities 
and palliative care agencies that handle 
calls and/or community visits.
in the uk , the responsibility for 
health care lies principally with the 
nHs which is split into agencies in 
england, scotland, wales and northern 
ireland. acs works closely with all 
these agencies and their relevant 
organisations. a summarised view of the 
market can be found on page 8.
from an it perspective, the Primary  
care sector offers significant  
opportunities. software capabilities 
adopted in other industries have not yet 
been implemented within the nHs and 
acs can bring proven technology into 
this environment. one example of this 
would be the development of adastra’s 
inurse product for community nurses 
which is discussed below. acs intends 
to address the it needs of Primary c are 
through a combination of in-house 
development and strategic acquisitions. 
r elative to the overall it spend of the 
nHs , acs has a very small share of the 
nHs it market and therefore we believe 
there is room to grow by delivering 
systems and services which meet the 
needs of the nHs . the it spend of the 
nHs in england was planned as £3.6bn 
for the financial year 2008-09.
AdAsTRA
adastra is the market leader in the 
provision of software and services 
for the management of ooH and 
unscheduled healthcare. adastra 
provides event management, data 
distribution and clinical support software. 
adastra also supplies infrastructure, 
networking and 24-hour support 
services, together with a secondary 
software product that automates the 
flow of information between the 
national nurse helpline services (nHs 
direct, nHs24 and nHs w ales) and the 
operational hubs contracted by Pcts to 
Chief executive’s statement
10
Compared with other sectors, health care has 
been relatively slow to adopt new technologies 
that are already in widespread use elsewhere; 
there are examples of technologies known to 
be beneficial and affordable that have not yet 
reached the health care consumer.  
Kings Fund Report 2008 11
CHIEF EXECUTIVE’S SATEMENT ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
manage ooH healthcare. apart from its 
strong market position, adastra benefits 
from the following:
r evenues with circa 65% underpinned  »
by recurring maintenance contracts 
and a renewal rate exceeding 95%.
Higher-margin direct sales model  »
generating more than 90% of sales and 
enhanced opportunities for cross selling.
strong profitability and cash  »
conversion with potential for 
increasing eBitda margins.
strong domain expertise in delivering  »
mission-critical and ‘sticky’ applications 
to key users in Primary care.
ongoing product innovation including  »
a move towards subscription pricing 
and new products for nursing and 
community care.
interoperability with more than 100  »
other it systems serving both the 
Primary care and the acute parts of 
the nHs .
in line with government policy, which 
is increasingly championing integrated 
healthcare in an out-of-hospital setting, 
the province of the operational hubs is 
growing to encompass other aspects of 
Primary care, including social care and 
home nursing. 
inTEGRATion pRoCEss
the integration of adastra into acs has 
been very successful and we more than 
doubled the monthly eBitda run rate 
within six months of acquisition.
the integration process will serve as 
the model for future acquisitions. the 
process is to implement proven sales 
methodologies, focus marketing strategy, 
prioritise product development to where 
demand is highest, and implement 
efficient processes particularly across 
product training and service utilisation. 
nEw pRoduCTs
adastra’s core software product has a 
strong franchise within the ooH sector 
and can be leveraged by customers in 
other environments. for example, an 
operational hub using adastra for gP 
ooH calls can also use the software 
for walk-in-centres and Polyclinics. in 
addition, the software has been further 
developed to launch three new products 
in the coming year:
iNurse: inurse is a mobile solution for 
care workers, such as community nurses, 
making visits to patients in their homes 
or other environments. a successful pilot 
of the product was run at nHs derby 
city for six months and inurse will be 
launched in the summer of 2009. 
at present, district nurses use paper 
based processes to plan and report 
workload, taking extra time and 
resource. with inurse, each nurse is 
given a hand held device to be notified 
of allocated patient visits and details 
and to upload instant feedback once 
visits are complete. once transmitted 
no data is left on the hand held device 
ensuring data security and patient 
confidentiality.
acs estimates that there are 65,000 
such nurses and palliative care workers 
in the uk who could gain significant 
benefits by using inusre within their 
teams. Based upon the average cost 
per visit of a district nurse, the inurse 
monthly charge to the Pct would be 
paid back after only one or two extra 
visits per month. in the pilot at derby, 
extra visits of one to two visits per day 
were generated.
End- o f -Lif e	R egist er: Patients who have 
terminal illnesses often have personal 
preferences for treatment, such as the 
desire to be or not be resuscitated and 
to die at home. in 2008, the nHs in 
england announced that all Pcts should 
implement an end-of-life r egister to log 
each patient’s wishes so that the nHs 
best serves them. adastra developed a 
hosted facility based on its core software 
that allows Pcts to quickly implement 
such a register and link it back to their 
current adastra infrastructure.
Relative to the overall IT spend of the NHS, ACS 
has a very small share of the NHS IT market and 
therefore we believe there is room to grow by 
delivering systems and services which meet the 
needs of the NHS. 
Under ACS 
management, 
Adastra’s monthly 
EBITDA run rate 
doubled in less 
than six months.
Adastra  
supports circa
650 
servers 
300 
PC/laptops  
50 
firewalls and 
equipment in 
500 
vehicles 12
Chief executive’s statement (cont)
Summary 	 C ar e 	 R ec or d 	 (SCR): under 
a nHs initiative, patients in england 
will have a scr made available to 
authorised health care professionals 
treating them anywhere in the nHs in 
england. adastra has embedded in its 
software the ability for instant access 
to the patient’s scr . adastra developed 
its scr facility over two years and 
completed all testing and compliance 
procedures with cfH (the it agency for 
the nHs in england) in january 2009. as 
i write, we await the final contractual 
proceedings with cf H to roll out this 
facility across england.
Hosting:	Primary care customers are 
also requesting greater hosting services 
to facilitate their it provision and reduce 
capital expenditure and software as 
a service fits neatly with hosting. the 
acquisition of Bsg will allow adastra to 
offer hosting facilities quickly and with a 
very experienced team.
BsG
acs announced on 8 may 2009 its 
intention to acquire Business systems 
group Holdings Plc. Bsg is a managed 
services company that designs, deploys 
and operates it solutions for its 
customers and its services will allow 
adastra’s new hosted products (inurse 
and end-of-l ife r egister in particular) 
to be rolled out more quickly. in 
addition, Bsg’s technically qualified 
and experienced staff and its suite of 
managed services and training offerings 
will bring significant cross selling 
opportunities. for example, adastra will 
now be able to offer to the nHs training 
services that include sharePoint.
FuTuRE ACquisiTions
the Board intends to acquire further 
businesses to complement acs products 
and services bringing additional growth. 
we will focus on acquisitions that 
provide new products and services to 
further meet the it needs of the Primary 
care market and which will provide 
new channels to market for the quality 
products and services of adastra and 
Bsg. the successful integration process 
implemented with adastra will be rolled 
out to each acquisition.
on 21 may 2009, we announced a 
conditional fund raising of £43.575m 
which will help us deliver the 
acquisitions more quickly.
i am looking forward to the coming year 
and the opportunity to grow from the 
strong foundation we have built.
	
Vin	Murria
chief executive director 
5 june 2009
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 CHIEF EXECUTIVE’S SATEMENT
Adastra’s core software product has a strong 
franchise within the OoH sector and can be 
leveraged by customers in other environments. 
For example, an operational hub using Adastra for 
GP OoH calls can also use the software for Walk-
in-Centres and Polyclinics.
We will focus on acquisitions that provide new 
products and services to further meet the IT 
needs of the Primary Care market and which will 
provide new channels to market for the quality 
products and services of Adastra and BSG.
Adastra inter-
operates with 
over 100 other 
systems making it 
an integral part of 
unscheduled care 13
CHIEF EXECUTIVE’S SATEMENT ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
ACS announced in 
May 2009 that it 
had conditionally 
raised £43.575m 
in equity to fund 
acquisitions 14
A C S 	 d e l i v e r e d 	 a 	 s t r o n g 	 fi n a n c i a l	
p e r f o r m a n c e 	 i n 	 i t s 	 fi r s t 	 s i x 	 m o n t h s 	 a n d	
w i t h 	 i t s 	 e x p e c t e d 	 c a s h 	 o f 	 c i r c a 	 £ 5 5 m	
f o l l o w i n g 	 t h e 	 n e w 	 e q u i t y 	 a n n o u n c e d	
i n 	 M a y 	 2 0 0 9 , 	 t h e 	 G r o u p 	 i s 	 i n 	 a 	 s t r o n g	
fi n a n c i a l 	 p o s i t i o n 	 t o 	 g r o w 	 b o t h	
or ganic al ly 	 and 	 b y 	 ac quisition.
the financial results for the 14 months 
to 28 february 2009 are for acs Plc as a 
non-trading entity for eight months and 
acs and adastra as a trading group for 
six months. the results include one-off 
costs for the acquisition of adastra and 
the post-transaction restructuring. 
the results for the six months from 
september 2008 to february 2009, 
excluding one-off items and non-cash 
accounting charges are representative of 
the group’s trading position going forward.
REvEnuE
r evenue for the six months to  
28 february 2009 was £7.3m. this 
compares to £5.7m for adastra for the 
6 months to 28 february 2008 and 
represents a 29% increase year on year.
this significant growth in adastra 
revenues includes higher revenues 
related to non-recurring hardware and 
services in the six months to  
28 february 2009. r ecurring revenues 
made up 65% of adastra’s revenue 
for 12 months to 28 february 2009 
compared to 55% for the second six 
months of the year.
the split of revenue by type is 
summarised in note 4 of the  
financial statements.
GRoss pRoFiT
Profit for the six months to 28 february 
2009 was £6.1m (83%). this compares 
to £4.8m for adastra for the 6 months to 
28 february 2008 and represents a 26% 
increase year on year compared to the 
six months to 29 february 2008.
gross profit represented 83% of revenue 
in the six months. gross margin on 
support revenues (supporting both 
software and hardware) is much higher 
than gross profit on hardware sales. as 
such, the mix of revenues in any one 
period can affect the overall gross profit 
from period to period.
Financial review
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 FINANCIAL REVIEW
Adjusted EBITDA* for the six months to 28 
February 2009 was £2.3m and for Adastra alone 
was £2.6m. This compares to £1.1m for Adastra 
for the 6 months to 28 February 2008 and 
represents a 142% increase year on year.
EBiTdA
adjusted eBitda* for the six months to 
28 february 2009 was £2.3m and for 
adastra alone was £2.6m. this compares 
to £1.1m for adastra for the 6 months 
to 28 february 2008 and represents 
a 142% increase year on year. this 
significant increase in adjusted eBitda 
resulted from increased sales and 
cost efficiencies achieved by the acs 
integration process. 15
costs in the six months included one-off 
restructuring and transaction costs of 
£0.3m and, share-based charges of 
£0.2m. including these items, reported 
eBitda was £1.7m.
pRoFiT BEFoRE TAx
Profit before tax for the six months to 
28 february 2009 was £1.5m and £2.2m 
for adastra alone. this compares to 
£1.0m for adastra for the 6 months to 
28 february 2008.
Profit before tax for the 14 months to 28 
february 2009 was £1.1m and included 
costs for the pre-trading entity (£0.5m), 
share-based charges of (£0.2m), 
amortisation of intangible assets created 
on the acquisition of adastra (£0.4m) 
and one-off restructuring and transaction 
costs of (£0.6m). 
CAsh
at 28 february 2009, cash and cash 
equivalents were £14.7m (31 december 
2007: £4.3m). the group had no debt or 
borrowings.
in august 2008, the group raised 
£14.0m cash (net of fees) in new 
shares and acquired adastra for £3.7m 
(net of fees and cash acquired). 
in the six months to 28 february 2008, 
the group generated £1.5m in cash 
from operations and paid the final cash 
consideration to adastra vendors and 
related fees (£0.9m) and prior year 
corporation tax plus instalments on 
current year corporation tax for adastra 
(£0.9m). the net movement in working 
capital was negative in the same 
period due to a high invoicing month in 
february 2009.
the group places cash on short-term 
deposits to maximise interest earned. 
in the 14 months to 28 february 2009, 
interest earned was £0.3m.
on 21 may 2009, acs announced it had 
conditionally raised £43.575m in new 
equity adding to the £14.7m cash in 
hand at 28 february 2009.
*adjusted eBitda is defined as profit 
before interest, taxation, depreciation, 
amortisation, one-off restructuring  
and transaction costs and share- 
based charges.
K ar en	Bach
chief financial officer 
5 june 2009
CAsh:
55m in hand
AdAsTRA REsulTs FoR  
six MonThs To 28 FEB 09:
Six months to 28 Feb 09
Six months to 29 Feb 08
Revenues
Gross Margin
EBITDA
£4.2m
£14.7m
£55m
£7.3m
£5.7m
£7.3m
£6.1m
£2.6m
DEC 07
FEB 09
ExPECTED JUNE 2009
83%
36%
“  E xpect edc ashinhandb yJune2009o f£55m.”
“  A CSmar ginsar ehighwith83%gr oss
mar ginand31%Adjust edEBITD Af orthe
Gr oup .F utur eac quisitionsar ee xpect ed
t oc ontribut epr ofitsandbringfurther
syner giest otheGr oup .”
FINANCIAL REVIEW ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
AdAsTRA REvEnuE:
29%  year-on-year growth 16
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 CORPORATE SOCIAL RESPONSIBILITy STATEMENT
A CS	r ec ognises	its	c orpor a t e	social	
r esponsibility	and	is	c ommit t ed	t o	
doing	business	r esponsibly	and	t o	
managing	its	r ela tionships	with	
stak eholders	with	int egrity	and	
tr anspar ency .	The	Gr oup	pr o vides	
servic es	t o	or ganisa tions	tha t	r ely	
on	A CS	t o	deliv er	their	o wn	servic es.	
Ther e f or e ,	A CS	tak es	its	deliv ery	and	
e fficiency	o f	servic es	seriously ,	with	
the	aim	o f	impr o ving	the	cust omer	
and	pa tient	e xperienc e .
CusToMERs
the group is committed to achieving 
the highest levels of customer service 
and satisfaction in line with delivering 
high-quality, reliable services. adastra 
organises regularly clinical review 
meetings with practicing gPs to keep 
the software and service in line with 
new initiatives. adastra also runs regular 
proactive checks on support services and 
equipment and monitors continuously its 
performance on service incidents.
adastra’s software is used to deliver 
patient care and supporting our 
customers to deliver this care safely 
and efficiently is an integral part of the 
group’s ethos.
EMployEEs
the group believes the skills, dedication 
and wellbeing of its employees are 
crucial to ensure the continual success of 
the business. the group firmly believes 
in equal opportunities and treats all 
potential recruits and employees fairly, 
regardless of disability, race, gender, 
age, gender orientation or religious and 
political beliefs. the group invests in 
training and developing its staff so that 
they are equipped with the right skills 
to be able to achieve this. 
hEAlTh And sAFETy
the group is committed to providing a 
safe and healthy environment for all its 
staff, contractors and visitors. an annual 
health and safety review is undertaken 
by a third party and management 
ensures any potential issues identified 
are resolved.
CoMMuniTy
the group’s contributions to the 
community vary from actively recruiting 
employees from local areas to offering 
financial support to charities and 
community organisations. during the six 
months as acs , the group donated over 
£102,000 to charities, including  
the waiver of the chief executive 
officer’s salary.
EnviRonMEnT
the group recognises the importance of 
its responsibilities to the environment 
and follows environmental regulations 
at all times. the group believes that 
small efforts in the environmental area 
can all add up to make a big difference 
(for example, use of recycling bins, and 
travelling together or via public transport).
Corporate social responsibility statement
the group’s corporate and social responsibility priorities are:  17
BOARD MEMBERS ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
Board of directors
vin MuRRiA, CHIEFExE CuTIvEOFFICER
vin has over 20 years’ experience of working for private equity 
backed and publicly listed companies focused on the software 
sector. during this time, vin has held a number of senior 
positions, including chief executive officer of computer software 
group Plc, which she took private in may 2007. the company 
merged with iris in july 2007 and was subsequently sold to 
Hellman friedman for $1 billion. vin is a Partner at elderstreet 
investments limited, and prior to this was european chief 
operating officer for k ewill systems Plc and chairman of leeds 
group Plc. she remains a chair or non-e xecutive director to a 
number of companies, including concateno Plc and innovise Plc.
MiChAEl JACKson, CHAIRmAN
michael founded elderstreet investments limited in 1990 and is 
its executive chairman. f or the past 25 years, he has specialised 
in raising finance and investing in the smaller companies sector. 
michael is currently chairman of Partygaming Plc and until 
august 2006 was chairman of a ftse100 company, the sage 
group Plc. other former directorships include c omputer software 
group Plc and Planit Holdings. He has also been a director 
and investor in many other quoted and unquoted companies, 
including netstore Plc. michael studied law at c ambridge 
university, and qualified as a chartered accountant with coopers 
and lybrand before spending five years in marketing for various 
us multinational technology companies.
KAREn BACh, CHIEFFINANCIAlOFFICER
karen’s previous role was as chief financial officer of ixeurope, 
an it services group. ixeurope was listed on aim in april 2006 at 
a market capitalisation of c. £38 million and was sold to equinix 
inc. in september 2007 for c. £265 million. Previously, karen 
was finance director of eds f rance, and she has held a number 
of managerial and financial roles at mci (worldcom) with 
responsibilities covering europe and asia. she has also worked 
for general motors and general accident after qualifying at  
ernst & young.
MARK wATTs, NON-ExE CuTIvEDIRE C T OR
mark has been advising the boards of uk public companies since 
1998. at marwyn, mark and james corsellis have undertaken 50 
transactions, raising an aggregate equity of close to £1 billion in 
acquisition funding for marwyn-backed management teams and 
special purpose acquisition vehicles from 2002 to date. He is a 
managing Partner in marwyn capital llP and marwyn investment 
management llP as well as a director of portfolio companies 
melorio Plc, Praesepe Plc and silverdell Plc. mark was also director 
of inspicio Plc. and talarius Plc.
vin
micHael
mark
karen 18
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 DIRECTORS’ REPORT
FinAnCiAl sTATEMEnTs
the directors have pleasure in submitting 
their annual report together with 
the audited consolidated financial 
statements of the company and its 
subsidiary undertakings for the fourteen 
months ended 28 february 2009.
pRinCipAl ACTiviTiEs
advanced computer software Plc (aim: 
asw, “acs”, or “the c ompany”) is a 
leading provider of software and it 
services to the Primary care sector. 
through its subsidiary adastra, acs 
services more than 95% of out-of-Hours 
(“ooH”) operational hubs and 50% of 
nHs walk-in centres in england. adastra’s 
software interoperates with more than 
100 other it systems serving both the 
Primary care and the acute parts of the 
nHs . a secondary product automates 
the flow of information between the 
national nurse Helpline services (nHs 
direct, nHs24 and nHs w ales) and the 
operational hubs of the Primary care 
trusts (“Pcts”). adastra’s software is 
licensed to more than 5,000 seats and 
transacts 14 million patient episodes 
every year.
acs occupies a strategically important 
niche in the it framework of the nHs , 
from which it intends to expand through 
a strategy of product innovation, 
selective acquisitions and/or technical 
collaborations, thus consolidating a 
fragmented market. By broadening 
its products and services, the acs 
group aims to improve the flow of 
patient information throughout Primary 
care using, where possible, a single 
view of the patient record. at the 
same time, acs’s strategy is designed 
to maximise opportunities for cost 
savings, shared r&d and cross-selling, 
whilst aligning with recent changes in 
nHs it procurement that increase the 
purchasing power of the Primary care 
segment.
BusinEss REviEw
this 14 month financial period saw the 
first acs acquisition and the creation 
of a strong foundation for organic 
and acquisitive growth. the progress 
of adastra since its acquisition in 
august 2008 has exceeded the Board’s 
expectations and the Board is delighted 
with the results. 
adastra’s market-leading position in 
Primary care and the £14.7m cash in 
hand sees acs start the new financial 
year in a strong position for both organic 
and acquisitive growth.
through its acquisition of adastra 
in august 2008, acs has become 
the market leader in the provision 
of software and services for the 
management of out-of-Hours (ooH) and 
unscheduled healthcare in the nHs . 
on acquisition of adastra in august 
2008, management’s priorities were to 
implement proven sales methodologies, 
focus the marketing strategy, prioritise 
product development to where demand 
is highest, and implement efficient 
processes, particularly across product 
training and service utilisation. 
in the six months since its acquisition, 
adastra generated £7.3m in revenue 
and £2.6m in adjusted eBitda (36% 
of revenue). compared to the same 
period last year, adastra has delivered a 
29% increase in revenues and a 142% 
increase in adjusted eBitda .
this significant growth in adastra 
revenues includes higher revenues 
related to non-recurring hardware and 
services in the six months to 28 february 
2009. r ecurring revenues made up 65% 
of adastra’s revenue for 12 months to 28 
february 2009 compared to 55% for the 
second six months of the year.
adastra is building on its core ooH 
business (which includes nHs direct 
and nHs24) and has developed organic 
solutions for other new Primary care 
markets, including walk-in centres, 
polyclinics, and community nurses. 
as part of this product diversification, 
adastra has run a successful pilot of its 
community nurse product (inurse) since 
october 2008 with the derby Primary 
care trust. the inurse product is a 
saas (managed service) based mobile 
offering that will be marketed during 
2009 to Primary care trusts, community 
services and charitable organisations 
such as those involved in palliative care. 
the inurse product delivers significant 
return on investment and efficiency 
savings to the healthcare sector.
in addition, in january 2009, adastra 
successfully completed live pilots of 
the summary care r ecord (scr) in 
Bolton and Bury. this is a strategic 
initiative for connecting for Health 
(cfH), the organisation that oversees it 
for the nHs , and provides a significant 
opportunity for acs , given the central 
role the scr will play in the nHs over 
the coming years.
adastra’s software is core to its 
customers’ it requirements. the 
historically high level of recurring 
revenues it generates from existing 
products is expected to be enhanced 
by recurring revenues from new 
opportunities generated by the inurse 
and scr products and services. 
the Board recognises that, whilst 
the general economic downturn may 
impact the discretionary it spend of 
Pcts, there is strong political support 
for the adoption of it within healthcare 
and government funding has so far 
proven relatively stable. the chancellor’s 
budget in april 2009 confirmed the 
5.5% expenditure increases of the Pcts 
for the next two years However, in 
2011-12, the nHs needs to find £2.6bn 
savings against its original allocation 
for that year. acs is in a strong position 
to support those initiatives with its 
new products such as inurse and the 
scr , which enable the nHs to achieve 
additional operational efficiencies. 
in addition to organic growth, the Board 
is looking to strengthen the business 
with selective acquisitions and is actively 
identifying businesses that fit the 
Board’s criteria. these criteria include: 
strong products and services that can 
further meet the needs of Primary care 
customers or provide new channels 
to market for existing products; high 
levels of recurring revenues; and the 
opportunity to enhance shareholder 
value by improving efficiencies - in a 
similar way to the strategy that has 
already proven to be effective at adastra.
the first six months of acs as a  
group has been very successful and  
the Board looks forward to building  
upon this foundation.
EMployEEs
the group places considerable value 
on the contributions of employees 
and recognises that the success of 
the business is achieved by the hard 
work of employees. the group has 
an employee-review process in place, 
rewards employees for outstanding 
Directors’ report 19
DIRECTORS’ REPORT ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
achievements and seeks to promote 
an environment free of discrimination, 
harassment and victimisation as an 
equal opportunity employer.
REsEARCh And dEvElopMEnT
adastra, acquired in august 2008, 
continues to develop its core software 
product and in parallel is developing new 
products that bring significant efficiency 
to customers’ operations. Bringing ever-
improving functionality to its customers, 
adastra can build ever-stronger customer 
support and services, leveraging the 
teams and infrastructure in place. on-
going developments include:
improved functionality within the  »
core software product (for example, 
reporting tools for customers)
new services that address key  »
initiatives in the health care arena, 
such as the summary care r ecord and 
Patient demographic service
inurse: a mobile solution for  »
community-based workers
end-of-life r egister: recording the  »
wishes of terminally-ill patients so 
that their care can be better focused.
EnviRonMEnT
the group recognises the importance of 
its responsibilities to the environment 
and follows environmental regulations 
(both national and local) at all times. 
the group believes that small efforts 
in the environmental area can all add 
up to make a big difference. therefore, 
employees are encouraged to use 
recycling bins and not print documents 
where electronic review is possible. 
FuTuRE dEvElopMEnTs
acs is looking to build new markets 
for adastra’s software and leverage its 
products and operations with future 
acquisitions. adastra is a strong platform 
for consolidation platform and the Board 
remains highly confident in the prospects 
for the underlying business. 
on 8 may 2009, acs announced its 
intention to acquire Bsg (Business 
systems group Holdings Plc) for a 
total consideration of £15.5m. Bsg is a 
managed services company that provides 
hosting and outsourcing services to small 
medium size businesses and its services 
will support other offerings in the group. 
in particular, Bsg’s hosting will support 
adastra’s inurse and end-of-life r egister 
offerings, allowing adastra to bring these 
products to market more quickly and with 
a considerably experienced team.
on 21 may 2009, acs also announced 
that it had conditionally raised £43.575m 
in new equity to fund future acquisitions.
dividEnds
the directors do not recommend the 
payment of a dividend (2007: £nil) 
in respect of the share capital of the 
company. 
diRECToRs 
the directors who held office during the fourteen months to 28 f ebruary 2009 were  
as follows:
vinodka murria chief executive officer appointed 27 august 2008
karen Bach chief financial officer appointed 1 september 2008
michael jackson* chairman (non-executive) appointed 27 august 2008
mark watts** non-executive director 
james corsellis  resigned 27 august 2008
Benjamin shaw*  resigned 27 august 2008
david williams*  resigned 27 august 2008
*  non-executive directors  
**  was executive director but became non-executive director on 27 august 2008.
suBsTAnTiAl shAREholdinGs
as at 28 february 2009, the company had been notified of the following interests of more 
than 3% of its issued ordinary share capital:
 Nb 	 Shar es 	 F eb - 09	 P er c entage
 
marwyn neptune f und 41,000,000 21.5%
eBt  19,537,816 10.2%
isis equity Partners 17,647,059 9.2%
lynn woods 16,275,738 8.5%
vin murria 14,705,882 7.7%
james Berry 13,927,954 7.3%
close investments 12,941,177 6.8%
Hargreave Hale 9,705,882 5.1%
nvm Private equity 8,833,529 4.6%
artemis invest mgt 5,900,000 3.1%
ant Hayes 5,854,092 3.1% 20
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 DIRECTORS’ REPORT
the gross margin of 83% included a 
higher than normal level of hardware 
sales without which the margin 
percentage would have been slightly 
higher. r evenue and adjusted eBitda per 
employee were comparable to industry 
standards and the Board is delighted 
with the financial performance of the 
group in the first six months.
non-FinAnCiAl indiCAToRs
operational kPis include the utilisation 
of service teams, service desk calls from 
customers and response times, and 
the qualified sales pipeline. these kPis 
are reviewed regularly with adastra’s 
senior management team and have all 
improved since the acquisition of adastra.
utilisation of the adastra service teams 
before the acquisition was low and has 
since been greatly improved. However, 
the target of 75% has not yet been 
attained. the new products based on the 
core software are expected to improve 
utilisation to levels closer to this target.
pRinCipAl RisKs And unCERTAinTiEs
the Board considers that the group’s 
principal commercial and financial risks 
to achieving its objectives are: 
Changes in government  
legislation or policy
whilst the government has, over a 
number of years, repeatedly confirmed 
its commitment to maintaining and 
improving it in the healthcare sector in 
order to improve the efficiency of the 
nHs, there can be no guarantee that its 
policy towards it spend in the healthcare 
sector will remain as it is today.
Dependence on the  
healthcare sector
the group’s client base is focused on the 
healthcare industry. if this sector and, as 
a result, acs ’ clients or prospective clients 
in this sector experience financial or 
business problems, the group’s business 
and financial results may be affected.
Competition and  
technological change
the group’s current and potential 
competitors may develop and introduce 
new products and services that could 
be priced lower, provide superior 
performance or achieve greater market 
acceptance than the group’s products 
and services.
Senior Management
in common with many smaller 
companies, the group’s future success is 
substantially dependent upon its senior 
management. the loss of a member of 
senior management could harm or delay 
the plans of the business either whilst 
management time is directed to finding 
suitable replacements or if no suitable 
replacement is available to the group. 
Investment in AIM traded securities
investment in shares traded on aim is 
perceived to involve a higher degree of 
risk and be less liquid than investment 
in companies whose shares are listed on 
the official l ist. 
Share price volatility and liquidity
the share price of quoted companies can 
be volatile and shareholdings illiquid. 
Intellectual Property
the group has certain trademark rights 
in existence or application pending over 
product and service names and also 
owns certain domain names used in its 
operations. However, the group could 
be challenged by third parties as to 
the ownership of, or right to use, such 
intellectual property. 
Customer Contracts
a large proportion of the group’s 
business is derived from supplying 
ongoing services based on purchase 
orders and an implied acceptance 
by customers of standard terms and 
conditions. despite historically very high 
levels of customer retention there is a 
risk that the group’s customers do not 
retain services and do not honour terms 
and conditions.
Environmental regulation
the group is subject to environmental 
protection and health and safety laws 
and regulations. ongoing compliance 
with environmental, health and safety 
laws and regulations could require the 
group to incur significant expenses, 
limit its ability to modify or expand 
its premises or require expenditure on 
capital improvements.
FinAnCiAl insTRuMEnTs
financial instruments, including financial 
risk management objectives and policies, 
policy for hedging, exposure to price 
risk, credit risk, liquidity risk and cash 
flow risk are disclosed in note 19 to the 
financial statements.
poliTiCAl And ChARiTABlE 
ConTRiBuTions
the group made charitable contributions 
during the fourteen month period of 
£102,000 (fourteen months to december 
2007: £nil), this includes £97,000 (2007 
fourteen months to december 2007 £nil) 
relating to the chief executive’s salary 
that has been waived and donated to a 
charity of her choice.
Directors’ report (cont)
KEy pERFoRMAnCE indiCAToRs (Kpis)
the following financial and non-financial kPis are some of the tools used by the Board 
and management to monitor the performance of trading businesses in the group:
Financial	indic a t ors
 6	months	t o	28	F ebruary	2009
gross margin as a percentage of revenue  83%
adjusted eBitda as a percentage of revenue  31%
r evenue per employee (£000) (6 months) 52
adjusted eBitda per employee (£000) (6 months) 18
*  adjusted eBitda is defined as profit before interest, taxation, depreciation, 
amortisation, one-off restructuring and transaction costs and share-based charges 21
DIRECTORS’ REPORT ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
Supplier payment policy
the company recognises the importance 
of good relationships with its suppliers 
and subcontractors. although the 
company does not follow any defined 
code or standard on payment practice, 
its established payment policy is to 
agree payment terms in advance of any 
commitment being entered into and 
to ensure that payments are made in 
accordance with the agreed terms.
trade creditor days for the company for 
the fourteen months ended 28 february 
2009 were 28 (2007: 20).
Share capital
details of the authorised and called up 
share capital, including movements in 
the year, are set out in note 23 to the 
group financial statements.
Auditors
all of the current directors have taken 
all the steps that they ought to have 
taken to make themselves aware of any 
information needed by the company’s 
auditors for the purposes of their audit 
and to establish that the auditors are 
aware of that information. the directors 
are not aware of any relevant information 
of which the auditors are unaware.
Bdo stoy Hayward ll P were appointed 
as auditors during the period. a 
resolution will be placed before the 
annual general meeting to reappoint 
Bdo s toy Hayward llP as auditors.
By order of the Board
Vinod ka 	 Murria 
chief executive officer
london  
5 june 2009 22
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 CORPORATE GOVERNANCE STATEMENT
Corporate governance statement
A C S 	 i s 	 l i s t e d 	 o n 	 A I M 	 a n d , 	 a s 	 s u c h ,	
i s 	 n o t 	 r e q u i r e d 	 t o 	 c o m p l y 	 f u l l y 	 w i t h	
t h e 	 p r i n c i p l e s 	 a n d 	 p r o v i s i o n s 	 o f 	 t h e	
C o m b i n e d 	 C o d e . 	 H o w e v e r , 	 m a n a g e m e n t	
i n t e n d s 	 t o 	 c o m p l y 	 s o 	 f a r 	 i s 	 a p p r o p r i a t e	
f o r 	 a 	 c o m p a n y 	 o f 	 i t s 	 s i z e 	 a n d 	 n a t u r e . 	 T h i s	
s t a t e m e n t 	 d e s c r i b e s 	 h o w 	 t h e 	 p r i n c i p l e s	
o f 	 c o r p o r a t e 	 g o v e r n a n c e 	 w e r e 	 a p p l i e d 	 t o	
the 	 Gr oup 	 during 	 the 	 f ourt een 	 months	
t o 	 2 8 	 F e b r u a r y 	 2 0 0 9 	 a n d 	 i n 	 p a r t i c u l a r , 	 f o r	
the 	 six 	 months 	 as 	 A CS.
ThE BoARd
the Board comprises four directors: two 
executive and two non-executive. the 
responsibilities of each director are set-
out in the table below.
the Board is responsible to shareholders 
for the proper management of the 
group and meets at least monthly to set 
the overall direction and strategy of the 
group, to review financial and operating 
performance and to review and agree 
budgets and forecasts. 
the non-executive directors are 
considered by the Board to be 
independent of management. going 
forward, the Board will consider adding 
further non-executive directors who 
represent the sector and/or add further 
management experience to the team.
in the six months to 28 february 2009, 
since the acquisition of adastra (and 
change of name to acs), a formal board 
meeting was held each month (with 
additional administrative meetings for 
specific approvals). 
all Board members receive monthly 
management accounts and reports 
enabling them to review the group’s 
performance against agreed objectives. 
these papers are circulated to directors 
in a timely manner in preparation for 
Board and committee meetings. 
the Board, intends to undertake an annual 
evaluation of its performance and that of 
its committees, following the anniversary 
of the change of name and new Board 
composition (september 2008).
RE-ElECTion
at each annual general meeting, a 
minimum number equal to one third 
of the number of directors will be 
required to retire and offer themselves 
for re-election where appropriate. 
if the number of directors is not a 
multiple of three, the number nearest 
to, but not greater than, one-third shall 
retire from office.
shARE dEAlinGs
the group has adopted a share dealing 
policy for all employees. employees 
require Board approval for share 
purchases or sale and are obliged to 
hold shares for at least 12 months to 
avoid short-term dealings.
AudiT CoMMiTTEE
the audit c ommittee receives and 
reviews reports from management and 
the company’s auditors relating to the 
annual and interim accounts and the 
accounting and internal control systems 
in use throughout the group. the audit 
committee reviews the scope and 
results of the external audit and provides 
a forum through which the external 
auditors report. during the six month 
period to 28 february 2009, there were 
two audit committee meetings. 
REMunERATion CoMMiTTEE
the r emuneration committee 
reviews the scale and structure of the 
executive directors remuneration and 
the terms of their service contracts. 
the remuneration and terms and 
conditions of appointment for the 
non-executive directors are set by the 
Board. on matters relating to their own 
remuneration and share options, the 
relevant director will stand aside. as 
the Board is small, there is no separate 
nominations c ommittee and the 
appointment of new directors will be 
considered by the Board as a whole.
the directors’ r emuneration report is set 
out on page 24.
inTERnAl ConTRol
the directors have overall responsibility 
for ensuring that the group maintains 
a system of internal control to provide 
them with reasonable assurance that 
the assets of the group are safeguarded 
and that the shareholders’ investments 
are protected. the system includes 
internal controls covering financial, 
operational and compliance areas, and 
risk management. there are limitations 
in any system of internal control, 
which can provide reasonable but not 
absolute assurance with respect to the 
preparation of financial information, the 
safeguarding of assets and the possibility 
of material misstatement or loss. the 
risk review is an ongoing process with 
regular review by the Board at least 
annually. the key procedures designed to 
provide an effective system of internal 
control include:
CONTROl ENvIRONMENT »
  the group has a clearly defined 
organisational structure. managers 
assume responsibility for running 
day-to-day operational activities and 
employees are required to follow 
procedures and policies appropriate to 
their position within the business.
FINANCIAl INFORMATION »
  the group prepares detailed budgets 
and cash flow projections approved 
annually by the Board and updated 
regularly throughout the year. detailed 
management accounts and working 
capital cash flow projections are 
diRECToRs’ REsponsiBiliTiEs
  Boar d	 Audit	C ommit ee	 R emuner a tion	C ommit t ee
vinodka murria chief executive officer member –  –
karen Bach chief financial officer member – –
michael jackson chairman (non-executive) chairman chairman member
mark watts non-executive director member member chairman 23
STATEMENT OF DIRECTORS’ RESPONSIBILITIES ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
the directors are responsible for keeping 
proper accounting records which disclose 
with reasonable accuracy at any time 
the financial position of the group, 
for safeguarding the assets of the 
company, for taking reasonable steps 
for the prevention and detection of 
fraud and other irregularities and for the 
preparation of a directors’ r eport which 
complies with the requirements of the 
companies act 1985.
the directors are responsible for 
preparing the annual report and the 
financial statements in accordance with 
the companies act 1985. the directors 
are also required to prepare financial 
statements for the group in accordance 
with international financial r eporting 
standards as adopted by the european 
union (ifrs s) and the rules of the 
london s tock exchange for companies 
trading securities on the alternative 
investment market. the directors have 
chosen to prepare financial statements 
for the company in accordance with uk 
generally accepted accounting Practice.
financial statements are published 
on the group’s website in accordance 
with legislation in the united kingdom 
governing the preparation and 
dissemination of financial statements, 
which may very from legislation in 
other jurisdictions. the maintenance 
and integrity of the group’s website is 
the responsibility of the directors. the 
directors’ responsibility also extends to 
the ongoing integrity of the financial 
statements contained therein.
GRoup FinAnCiAl sTATEMEnTs
international accounting standard 
1 requires that financial statements 
present fairly for each financial year 
the group’s financial position, financial 
performance and cash flows. this 
requires the faithful representation of 
the effects of transactions, other events 
and conditions in accordance with the 
definitions and recognition criteria for 
assets, liabilities, income and expenses 
set out in the international accounting 
standards Board’s ‘framework for 
the preparation and presentation of 
financial statements’. in virtually all 
circumstances, a fair presentation will 
be achieved by compliance with all 
applicable ifrss. a fair presentation also 
requires the directors to:
consistently select and apply  »
appropriate accounting policies;
present information, including  »
accounting policies, in a manner that 
provides relevant, reliable, comparable 
and understandable information; and
provide additional disclosures  »
when compliance with the specific 
requirements in ifrs is insufficient to 
enable users to understand the impact  
of particular transactions, other events 
and conditions on the entity’s financial 
position and financial performance. 
pAREnT CoMpAny  
FinAnCiAl sTATEMEnTs
company law requires the directors to 
prepare financial statements for each 
financial year which give a true and 
fair view of the state of affairs of the 
company and of the profit or loss of the 
company for that period. in preparing 
these financial statements, the directors 
are required to::
select suitable accounting policies and  »
then apply them consistently;
prepare the financial statements on  »
a going concern basis unless it is 
inappropriate to assume the company 
will continue in business;
make judgements and estimates that  »
are reasonable and prudent; and
state whether applicable accounting  »
standards have been followed, subject 
to any material departures disclosed and 
explained in the financial statements.
Statement of  
directors’ responsibilities
prepared on a monthly basis and 
compared to budgets and projections 
to identify any significant variances.
CASH MANAGEMENT »
  management has spread cash 
balances across banks to reduce 
concentration of risk. cash is 
deposited on fixed-interest terms 
to optimise interest earned. these 
deposits are generally for less than 
three months.
RISk REvIEW »
  the Board, in place since september 
2008, intends to undertake an annual 
review of risks and risk minimisation.
RElATIONS WITH SHAREHOlDERS »
  the Board values the views of 
shareholders and recognises their 
interests in the group’s performance. 
r egular communication is maintained 
with all shareholders through 
company announcements, the annual 
r eport and financial statements and 
the interim r eport. in addition, the 
company maintains a website in 
accordance with aim r ule 26 which 
contains information on the group, 
regulatory announcements  
and financial statements:  
www.advcomputersoftware.com.
GOING CONCERN »
  the directors are satisfied that the 
group has adequate resources to 
continue in operational existence 
for the foreseeable future, being a 
period of at least 12 months from 
the date of this report. for this 
reason, they continue to adopt the 
going concern basis in preparing the 
financial statements. 24
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 DIRECTORS’ REMUNERATION REPORT
acs is listed on aim and, as such, is 
not required to comply fully with the 
principles and provisions of the directors 
r emuneration r eport r egulations 
2002. However, management intends 
to comply so far is appropriate for a 
company of its size and nature.
REMunERATion CoMMiTTEE
the remuneration committee monitors 
market information to set and review 
the compensation packages of the Board 
members. the aim and members of the 
remuneration committee are noted in 
the corporate governance statement on 
page 22.
ExECuTivE diRECToRs
the committee aims to ensure 
compensation is fair and reasonable and 
that it motivates the executive directors 
in both the short and long-term. 
r emuneration packages include:
defined contribution to personal  »
pension plans
discretionary bonus (though none  »
granted for the six months to 28 
february 2009)
Basic salary »
other benefits such as car provision or  »
car allowance.
the group granted management 
Participation shares (mPs) in a subsidiary 
to reflect the long-term incentivisation 
of the Board members. the rights and 
terms of these shares are summarised in 
the notes to the financial statements.
non-ExECuTivE diRECToRs
the Board determines the remuneration 
of the non-executive directors. michael 
jackson is paid as an employee and mark 
watt is remunerated by fees invoiced 
from marwyn capital llP .
sERviCE ConTRACTs
the service contracts and letters of 
appointment of the directors include the 
terms in the table below.
the executives are on rolling director 
appointments and offer themselves for 
re-election by rotation in accordance 
with the company’s articles of 
association.
upon termination of their service 
agreement, executive directors are 
entitled to salary equivalent to their 
notice period.
shARE pRiCE
the share price of the company at the 
time of the placing and acquisition of 
adastra was 17p per share. the share 
price on 28 february 2009 was 22p  
per share.
Directors’ remuneration report
sERviCE ConTRACTs
 D a t e	o f	appointment	 No tic e	period	 P eriod	o f	appointment	
E x ecutiv e	dir ect ors
vinodka murria 27 august 2008* 12 months – 
karen Bach 1 september 2008 6 months –
Non- e x ecutiv e	dir ect ors
michael jackson 27 august 2008* ** 12 months minimum 12 months from date of appointment
mark watts 27 august 2008* 3 months minimum 12 months from date of appointment
*  terms signed 23 july 2008      **   as amended 31 october 2008
diRECToRs’ REMunERATion
   
  for the fourteen months  
 for the fourteen months to 28 february 2009 to 31 december 2007
 salary Bonus Benefits total Pension consultancy fees total Pension 
 £000 £000 £000 £000 £000 £000 £000 £000 
E x ecutiv e	dir ect ors        
vinodka murria
1
 7 – 2 9 –  65 – – 
karen Bach  71 –  – 71  4 – – – 
Non- e x ecutiv e	dir ect ors        
michael jackson  13 – – 13 – – – –
mark watts – – – – – 9 – –
	 	91	 –	 2	 93	 4	 74	 –	 – 
1
 vinodka murria waived the right to her full salary and benefits (under her employment contract) and elected, until 31 august 2009, 
to receive £15,000 gross salary per annum plus provision of a company car. the difference in salary, plus car allowance and national 
insurance saved by the company was paid to the charity of vinodka’s choice (Ps foundation). 25
INDEPENDENT AUDITORS REPORT ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
we have audited the group and parent 
company financial statements (the 
‘’financial statements’’) of advanced 
computer software Plc for the period 
ended 28 february 2009 which comprise 
the consolidated income statement, 
the consolidated and parent company 
balance sheets, the consolidated cash 
flow statement, the consolidated 
statement of recognised income and 
expense and the related notes.  
these financial statements have been 
prepared under the accounting policies 
set out therein.
REspECTivE REsponsiBiliTiEs oF 
diRECToRs And AudiToRs
the directors’ responsibilities for 
preparing the annual report and the 
group financial statements in accordance 
with applicable law and international 
financial r eporting standards (ifrss) 
as adopted by the european union, 
and for preparing the parent company 
financial statements and the directors’ 
remuneration report in accordance with 
applicable law and united kingdom 
accounting standards (united kingdom 
generally accepted accounting Practice) 
are set out in the statement of directors’ 
responsibilities. 
our responsibility is to audit the financial 
statements in accordance with relevant 
legal and regulatory requirements and 
international standards on auditing (uk 
and ireland).
we report to you our opinion as to 
whether the financial statements give 
a true and fair view and have been 
properly prepared in accordance with 
the companies act 1985 and whether 
the information given in the directors’ 
report is consistent with those financial 
statements. we also report to you if, in 
our opinion, the company has not kept 
proper accounting records, if we have 
not received all the information and 
explanations we require for our audit, or 
if information specified by law regarding 
directors’ remuneration and other 
transactions is not disclosed.
we read other information contained in 
the annual report, and consider whether 
it is consistent with the audited financial 
statements. this other information 
comprises only the performance 
highlights, the chairman’s statement, the 
business, service and market overviews, 
the chief executive’s statement, the 
financial review, the c orporate social 
r esponsibility statement, the Board 
of directors, the director’s report, the 
corporate governance statement and 
the director’s r emuneration report. 
we consider the implications for our 
report if we become aware of any 
apparent misstatements or material 
inconsistencies with the financial 
statements. our responsibilities do not 
extend to any other information.
our report has been prepared pursuant 
to the requirements of the companies 
act 1985 and for no other purpose. no 
person is entitled to rely on this report 
unless such a person is a person entitled 
to rely upon this report by virtue of and 
for the purpose of the companies act 
1985 or has been expressly authorised 
to do so by our prior written consent. 
save as above, we do not accept 
responsibility for this report to any other 
person or for any other purpose and we 
hereby expressly disclaim any and all 
such liability.
BAsis oF AudiT opinion
we conducted our audit in accordance 
with international standards on auditing 
(uk and ireland) issued by the auditing 
Practices Board. an audit includes 
examination, on a test basis, of evidence 
relevant to the amounts and disclosures 
in the financial statements. it also 
includes an assessment of the significant 
estimates and judgments made by 
the directors in the preparation of the 
financial statements, and of whether 
the accounting policies are appropriate 
to the group’s and company’s 
circumstances, consistently applied and 
adequately disclosed.
we planned and performed our audit 
so as to obtain all the information and 
explanations which we considered 
necessary in order to provide us with 
sufficient evidence to give reasonable 
assurance that the financial statements 
are free from material misstatement, 
whether caused by fraud or other 
irregularity or error. in forming our 
opinion we also evaluated the overall 
adequacy of the presentation of 
information in the financial statements.
opinion
in our opinion:
the group financial statements give a  »
true and fair view, in accordance with 
ifrss as adopted by the european 
union, of the state of the group’s 
affairs as at 28 february 2009 and of 
its profit for the period then ended;
the parent company financial  »
statements give a true and fair view, 
in accordance with united kingdom 
generally accepted accounting 
Practice, of the state of the parent 
company’s affairs as at  
28 february 2009;
the financial statements have been  »
properly prepared in accordance with 
the companies act 1985; and
the information given in the   »
directors’ report is consistent with  
the financial statements.
BDO	S t o y	Ha yw ar d	LLP 
chartered accountants & r egistered 
auditors 
gatwick
5 june 2009
Independent auditors report 26
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 CONSOLIDATED INCOME STATEMENT
Consolidated income statement
F or	the	f ourt een	months	ended	28	F ebruary	2009
	 No t es	 8	months	ended	 6	months	ended	 14	months	ended	 14	months	ended	
	 	 31	Aug	2008	 28	F eb	2009	 28	F eb	2009	 31	Dec	2007
	 	 	 	 	 R esta t ed
   £000  £000 £000 £000
r evenue 4  – 7,327  7,327  –
cost of sales  – (1,244) (1,244) –
Gr oss	pr ofit	 	 –	 6 ,083		 6 ,083		 –
adastra reorganisation /   – (321) (321) – 
transaction costs post acquisition
share based payments   – (244) (244) –
depreciation 5  – (107) (107) –
amortisation of intangible assets 5 – (436) (436) –
aborted transaction costs  (219) – (219) (942)
other administrative expenses 5 (234) (3,788) (4,022) (149)
T o tal	administr a tiv e	c osts	 	 (453)	 (4 ,896)	 (5 ,349)	 (1 ,091)
Pr ofit/(loss)	fr om	oper a tions	 	 (453)	 1 ,187		 734		 (1 ,091)
finance income 6  87  272  359  225 
	 		
Pr ofit/(loss)	be f or e	inc ome	ta x	 	 (366)	 1 ,459		 1 ,093	 (866)
  
corporation tax  8 - (302) (302) -
	 	 		 	
Pr ofit	/(loss)	f or	the	y e ar	a t tribut ed	 	 (366)	 1 ,157		 791		 (866)	
t o	equity	holders	o f	the	par ent
   
earnings /(loss) per share  (0.8) 0.7 0.8  (1.9)
diluted basic earnings/(loss) per share  (0.8) 0.7  0.8  (1.9)
the notes on pages 30 to 53 form part of these financial statements CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
27
Consolidated statement of recognised 
income and expense
F or	the	f ourt een	months	ended	28	F ebruary	2009
	 8	months	ended	 6	months	ended	 14	months	ended	 14	months	ended	
	 31	Aug	2008	 28	F eb	2009	 28	F eb	2009	 31	Dec	2007
	 	 	 	 R esta t ed
  £000  £000 £000 £000
Profit/(loss) for the period (366) 1,157  791  (866)
	 		 	
T o tal	r ec ognised	inc ome	and	e xpenses	f or	the	period	 (366)	 1 ,157		 791		 (866)
     
Ef f ect	o f	prior	period	r esta t ements    
r eclassification of share issue costs to equity    112 
r ecognition of trade creditors    (264)
	 	 	 	 (152)
the notes on pages 30 to 53 form part of these financial statements 28
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 CONSOLIDATED BALANCE SHEET
Consolidated balance sheet
As	a t	28	F ebruary	2009
	 No t es	 28	F ebruary	2009	 31	Dec ember	2007	
	 	 	 R esta t ed
   £000 £000
Non- curr ent	asse ts	 		 	
intangible assets 11  12,433   -
Property, plant and equipment 12  432   -
T o tal	non- curr ent	asse ts	 	 12 ,865		 	 -
C urr ent	asse ts    
inventories 13 239   -
trade and other receivables 14 1,867  16
cash and cash equivalents 15  14,656  4,249 
T o tal	curr ent	asse ts	 	 16 ,762		 4 ,265	
T o tal	asse ts	 	 29 ,627		 4 ,265	
C urr ent	liabilities    
trade and other payables 16  (2,974) (743)
T o tal	curr ent	liabilities	 	 (2 ,974)	 (743)
Non- curr ent	liabilities    
deferred tax 17  (1,093)  -
Provisions 18  (118)  -
T o tal	non- curr ent	liabilities	 	 (1 ,211)	 	 -
T o tal	liabilities	 	 (4 ,185)	 (743)
Ne t	asse ts	 	 25 ,442		 3 ,522 
E quity    
share capital 23  19,092  4,500 
share premium 23  5,426   -
merger reserve 23  2,821   -
share trust reserve 23  (1,954)  -
r etained earnings 23  57  (978) 
T o tal	equity	a t tributable	t o	equity	holders	o f	the	c ompan y	 	 25 ,442		 3 ,522	
 
 
the notes on pages 30 to 53 form part of these financial statements. these financial statements were approved by the board of directors 
and authorised for issue on 5 june 2009 and were signed on its behalf by:
K ar en	Bach 
chief financial officer
 
5 june 2009 CONSOLIDATED CASH FLOW STATEMENT ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
29
Consolidated cash flow statement
F or	the	f ourt een	months	ended	28	F ebruary	2009
	 8	months	ended	 6	months	ended	 14	months	ended	 14	months	ended	
	 31	Aug	2008	 28	F eb	2009	 28	F eb	2009	 31	Dec	2007
	 	 	 	 R esta t ed
  £000  £000 £000 £000
	
C ash	flo w s	fr om	oper a ting	activities
(loss)/profit for the period (366) 1,157  791  (866)
 
adjustments for   
depreciation - 107  107  -
amortisation of intangible assets - 436  436  -
share based payment (ifrs2) - 244  244  -
finance income (87) (277) (364) (225)
income tax expenses - 302  302 -
Oper a ting	c ash	flo w s	be f or e	mo v ement	in	w orking	c apital	 (453)	 1 ,969	 1 ,516		 (1 ,091)
     
(decrease)/increase in trade and other payables (695) (198) (893) 727 
increase in trade and other receivables - (521) (521) -
decrease in inventories - 408  408 -
C ash	gener a t ed	in	the	oper a tions	 (1 ,148)	 1 ,658	 510		 (364)
corporation tax paid - (879) (879) -
Ne t	c ash	(out)/	in	flo w s	fr om	oper a ting	activities	 (1 ,148)	 779	 (369)	 (364)
 
C ash	flo w s	fr om	in v esting	activities 
acquisition of subsidiary (net of cash acquired)  (2,714) (880) (3,594) -
finance income 87  277  364  225 
development expenditure - (135) (135) -
acquisition of property, plant and equipment - (20) (20) -
C ash	(out)/in	fr om	in v esting	activities	 (2 ,627)	 (758)	 (3 ,385)	 225 
 
C ash	flo w s	fr om	financing	activities   
Proceeds from issue of new shares 14,635  - 14,635  4,500 
cost of issue of shares (212) (262) (474) (112)
C ash	fr om	financing	activities	 14 ,423		 (262)	 14 ,161		 4 ,388
 
change in cash and cash equivalents 10,648  (241) 10,407 4,249 
cash and cash equivalents at start of previous period 4,249  14,897 4,249  -
C ash	and	c ash	equiv alents	a t	end	o f	period	 14 ,897		 14 ,656		 14 ,656		 4 ,249	
the notes on pages 30 to 53 form part of these financial statements. 30
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
F or	the	f ourt een	months	ended	28	F ebruary	2009
1 - General information
advanced computer software Plc (aim: asw, “acs”, or “the 
company”), a leading provider of software and it services to 
the Primary care sector, is a limited liability company and is 
listed on aim (a market of the london s tock exchange). the 
company’s registered address is Quadrant House, floor 6, 17 
thomas more street, thomas more square, london, e1w 1yw 
and the company’s registration number is 5965280.
this financial information has been prepared using the 
recognition and measurement principles of international 
accounting standards, international financial r eporting standards 
and interpretations adopted for use in the european union 
(collectively adopted ifrss). the principal accounting policies 
used in preparing the financial results are detailed in note 3. 
adastra software ltd (“adastra”) is a subsidiary of the c ompany 
and together with other (non-trading) subsidiaries makes up the 
“acs group”.
2 - Basis of preparation
following the acquisition of adastra, acs changed its financial 
year end to february, aligning it with adastra’s. therefore, the 
financial information presented is for the acs group for the 
fourteen months to 28 february 2009. 
the financial results of acs for the fourteen month period to 31 
december 2007 have been corrected for two prior period errors:
share issue costs of £0.11m have been removed from the  »
income statement and included in the total equity attributable 
to equity holders of the company. these costs related to 
the shares issued in 2006. the impact of the adjustment on 
operating profit was +£0.11m; profit after tax +£0.11m; ePs  
+ 0.2p and net assets nil.
an additional trade creditor of £0.26m has been recognised  »
in the balance as at 31 december 2007 sheet for professional 
fees incurred in the fourteen month period to that date but 
not previously recognised in the financial statements. the 
impact of the adjustment on operating profit was -£0.26m; 
profit after tax -£0.26m; ePs:-0.6p and net assets -£0.26m.
the financial information is presented in sterling, which is the 
functional currency of the acs group. all financial information 
presented in sterling has been rounded to the nearest thousand.
3 - Significant accounting policies (cont) 
the significant accounting policies adopted by the acs group are 
set out below.
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.
Depr ecia tion
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 depreciation policies for 
each class of asset are as follows:
leasehold improvements – 10% straight-line »
t.s. loan equipment – 25% straight-line »
office equipment and furniture – 20% straight-line »
computers – 20% to 25% straight-line »
t.s loan equipment is equipment that adastra loans to customers 
while their own equipment is being repaired or replaced.
depreciation methods, useful lives and residual values are 
reviewed at each reporting date.
inTAnGiBlEs
Goodwill
goodwill is recognised on the acquisition of a subsidiary and 
is the difference between the cost of the acquisition (including 
fees) and the fair value of tangible and intangible assets 
acquired. the carrying value of goodwill is reviewed at each 
reporting date, with any impairment required charged to the 
income statement.
Research and development
development activities involve a plan or design for the 
production of new or substantially improved computer software. 
development expenditure is capitalised only if development 
costs can be measured reliably, the software programme is 
technically and commercially feasible, future economic benefits 
are probable, and the acs group has sufficient resources 
available to complete development and to use, lease or sell the 
asset. the expenditure capitalised includes only the cost of gross 
direct labour costs that are directly attributable to preparing the 
asset for its intended use or third party costs incurred directly on 
the development activities above.
capitalised development expenditure is measured at cost less 
accumulated amortisation and accumulated impairment losses. 
other research and development expenditure not meeting the 
above criteria is recognised in the income statement as incurred.  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
31
Notes to the consolidated financial statements (cont)
3 - Significant accounting policies (cont)
Acquired intangibles
following the acquisition of adastra, the assets acquired were 
classified into tangible and intangible assets and fair values 
applied using the principles of ifrs 3. this led to the creation of 
intangible assets recognised on the consolidated balance sheet 
which will be amortised over their estimated useful lives. the 
assets recognised were:
Brand name »
customer relationships »
technology assets »
in-process research and development. »
Amortisation
amortisation is recognised in the income statement on a straight 
line basis over the estimated useful lives of intangible assets, 
other than goodwill, from the date they are available for use. 
the estimated useful lives for the current period are as follows:
capitalised development costs are amortised over the period  »
to the release of the subsequent version. this period is 
estimated by management as eight years.
the brand name recognised on the acquisition of adastra is to  »
be amortised over the four years from acquisition.
technology assets recognised on the acquisition of adastra  »
will be amortised over four years.
the contractual relationships recognised on the acquisition of  »
adastra are to be amortised over five years.
iMpAiRMEnT oF inTAnGiBlEs And pRopERTy,  
plAnT And EquipMEnT
the carrying amounts of the acs group’s assets are reviewed 
at each balance sheet date to determine whether there is 
any indication of impairment. if any such indication exists, the 
assets’ recoverable amount is estimated.
an impairment loss is recognised whenever the carrying amount 
of an asset, or its cash-generating unit, exceeds the asset’s 
recoverable amount. impairment losses are recognised in the 
income statement.
Calculation of recoverable amount
the recoverable amount of assets is the greater of their net 
selling price 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. 
impairments of goodwill are never reversed.
invEnToRiEs
inventories are stated at the lower of cost and net realisable 
value. cost is based on the first-in first-out principle and includes 
expenditure incurred in acquiring the inventories and bringing 
them to their existing location and condition.
net realisable value is the estimated selling price in the ordinary 
course of business, less the estimated costs of completion and 
selling expenses.
FinAnCiAl insTRuMEnTs
the acs group’s financial instruments comprise cash and various 
items such as trade receivables and trade payables that arise 
directly from its operations. finance payments associated with 
financial liabilities are dealt with as part of finance expenses.
Financial	asse ts a.	
the acs group’s financial assets fall into the category discussed 
below. unless otherwise indicated, the carrying amounts of the 
acs group’s financial assets are a reasonable approximation of 
their fair values.
loans and receivables: these assets are non-derivative financial 
assets with fixed or determinable payments that are not quoted 
in an active market. they arise principally through the provision 
of services to customers (trade receivables), but also incorporate 
other types of contractual monetary asset such as deposits 
on rental property and prepayments, which are contractually 
recoverable. they are initially recognised, at fair value and 
subsequently carried at amortised cost.
Financial	liabilities b .	
the acs group’s financial liabilities fall into the category 
discussed below. unless otherwise indicated, the carrying 
amounts of the acs group’s financial liabilities are a reasonable 
approximation of their fair values.
trade payables and other short-term monetary liabilities are 
initially recognised at fair value and subsequently measured at 
amortised cost using the effective interest rate method. 
Shar e	c apital c .	
financial instruments issued by the group are treated as equity 
only to the extent that they do not meet the definition of a 
financial liability. the acs group’s ordinary shares are classified 
as equity instruments.
further information on the group’s financial instruments can be 
found in note 19.
CAsh And CAsh EquivAlEnTs
cash and cash equivalents comprise cash balances and cash on 
short-term, fixed-rate deposits for less than three months.  32
Notes to the consolidated financial statements (cont)
3 - Significant accounting policies (cont)
lEAsEd AssETs
leases in terms of which the acs group assumes substantially 
all the risks and rewards of ownership are classified as a finance 
lease. upon initial recognition, the leased asset is measured at 
an amount equal to the lower of its fair value and the present 
value of the minimum lease payments. subsequent to initial 
recognition, the asset is accounted for in accordance with the 
accounting policy applicable to that asset. other leases are 
operating leases.
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.
FoREiGn CuRREnCy TRAnsACTions
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. non-
monetary assets and liabilities that are measured in terms of 
historical cost in a foreign currency are translated using the 
exchange rate at the date of the transaction. 
REvEnuE
the acs group derives revenue from the sale of software 
licences, hardware, support and maintenance and installation, 
project management and other services. these are often entered 
into as part of a single arrangement, however, each element of 
the contract is separable and the fair value associated with each 
can be reliably measured.
r evenue is recognised as follows:
licence revenue is recognised on invoicing which is when the  »
software and licence key have been delivered;
infrastructure revenue is invoiced and recognised on delivery  »
to the customer;
services and training are invoiced and recognised as and  »
when performed;
and support and maintenance are recognised straight-line  »
over the period of cover to which they relate;
amounts billed in excess of revenue recognised are recorded  »
as deferred revenue and are included within current liabilities.
EMployEE BEnEFiT TRusT
as the company is deemed to have some control of the 
employee Benefit trust, it is treated as a subsidiary undertaking. 
the assets (other than investments in the company’s shares), 
liabilities, income and expenses are included on a line by line 
basis in the consolidated financial statements. 
the investment in the company’s shares is shown in the share 
trust reserve and is treated as a deduction from equity in the 
consolidated balance sheet.
CoRpoRATion TAx
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 directly in 
equity, in which case it is recognised in equity.
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.
EMployEE BEnEFiTs
Defined contribution plans
obligations for contributions to defined contribution pension 
plans are recognised as an expense in the income statement  
as incurred.
Short-term benefits
short-term employee benefit obligations are measured on an 
undiscounted basis and are expensed as the related service is 
provided. a provision is recognised for the amount expected 
to be paid under short-term cash bonus or profit-sharing plans 
if the acs group has a present legal or constructive obligation 
to pay this amount as a result of past service provided by the 
employee and the obligation can be estimated reliably.
Share-based payment transactions
the fair value of options granted to employees is recognised as 
an employee expense, with a corresponding increase in equity, 
over the period in which the employees become unconditionally 
entitled to the options. the fair value of the options granted is 
measured using an option valuation model, taking into account 
the terms and conditions upon which the options were granted. 
the amount recognised as an expense is adjusted to reflect the 
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 33
actual number of share options that vest except where forfeiture 
is due only to share prices not achieving the threshold for vesting.
3 - Significant accounting policies (cont)
CRiTiCAl ACCounTinG EsTiMATEs And JudGEMEnTs
Impairment of goodwill
the group is required to test goodwill for potential impairment 
on an annual basis. the recoverable amount is determined 
based on value in use calculations which requires the estimation 
of future cash flows and the selection of a discount rate in order 
to calculate the present value of the cash flows. actual outcomes 
of this calculation may vary. more information including the 
carrying value is included in note 11.
Intangible assets
on acquisition of a business, the group is required to value 
the assets acquired and recognise intangible assets on the 
balance sheet. the valuation of these assets relies on various 
assumptions, including future revenues and costs derived from 
those assets and the selection of an appropriate discount rate 
in order to calculate the present value of those cashflows. more 
information including the carrying value is included in note 11.
Useful lives of intangible assets and property, plant  
and equipment
intangible assets, property, plant and equipment are amortised 
or depreciated over their useful lives. these useful lives are 
based on management’s estimates of the period that the assets 
will generate revenue. these estimates are periodically reviewed 
for continued appropriateness. changes to estimates can result in 
significant variations in the carrying value and amounts charged 
to the consolidated income statement in specific periods. 
Inventories
the trading subsidiaries within the group review the net 
realisable value of, and demand for, their inventory on a regular 
basis to provide assurance that it is stated at the lower of cost 
and net realisable value. factors that could impact estimated 
demand and selling prices include the timing and success of 
future technological innovations, competitor activities, supplier 
prices and economic trends.
Share-based payments
the fair value of share-based payments is estimated using the 
binominal valuation model as at the date of grant and using 
certain assumptions. those assumptions are disclosed in note 24.
Provisions
the group recognises provisions in accordance with its 
accounting policy described above. in arriving at estimates for 
provisions, estimates and judgements are made, in particular 
with regard to timing and amount. calculations are based on 
anticipated future cash flows relating to the relevant event, 
which are estimated by management and where appropriate 
supported by the use of external advisers.
Taxation
the group is subject to uk corporate taxation and judgement is 
required in determining the provision for income and deferred 
taxation. the group recognises taxation assets and liabilities 
based upon estimates and assessments of many factors 
including past experience, advice received on the relevant 
taxation legislation and judgements about the outcome of future 
events. to the extent that the final outcome of these matters 
is different from the amounts recorded, such differences will 
impact on the taxation charge made in the consolidated income 
statement in the period in which such determination is made.
standards, amendments and interpretations to existing standards 
not yet effective.
nEw ACCounTinG sTAndARds
certain new standards, amendments and interpretations to 
existing standards have been published that are mandatory for 
the group’s accounting periods beginning on or after 1 january 
2009 or later periods and which acs has decided not to adopt 
early. these are:
Standards for accounting periods on or after 1 January 2009:
amendment to ifrs 2 share-based Payment: v esting conditions 
and cancellations (issued 17 january 2008). acs expects to 
apply this standard in the accounting period beginning on 
1 march 2009 and is currently assessing the impact of the 
amendment on the accounts.
amendments to ias 1 Presentation of financial statements. acs 
expects to apply this standard in the accounting period beginning 
on 1 march 2009. as this is a disclosure standard it will not have 
any impact on the results or net assets of the group.
improving disclosures about financial instruments (amendments 
to ifrs 7) (issued 5 march 2009). acs expects to apply this 
standard in the accounting period beginning on 1 march 2009. 
as this is a disclosure standard it will not have any impact on 
the results or net assets of the group.
ifrs 8 operating segments (issued 30 november 2006). acs 
expects to apply this standard in the accounting period beginning 
on 1 march 2009. as this is a disclosure standard it will not have 
any impact on the results or net assets of the group.
Standards for accounting periods on or after 1 July 2009:
r evised ifrs 3 Business c ombinations (issued 10 january  »
2008). r evised ifrs 3 must be adopted at the same time as 
the amendment to ias 27.
amendments to ias 27 c onsolidated and separate financial  »
statements (issued 10 january 2008). the amendment to ias 
27 must be adopted at the same time as ifrs 3 r evised.
management is currently assessing the impact of revised ifrs 3 
and amendments to ias 27 on the accounts.
other new standards, amendments and interpretations to 
existing standards have been published that management 
believes will not impact the group’s financial statements  
going forward. 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
Notes to the consolidated financial statements (cont) 34
Notes to the consolidated financial statements (cont)
3 - Significant accounting policies (cont)
these are:
amendments to ias 32 and ias 1 Puttable financial instruments and obligations arising on liquidation »
amendments to ias 39 and ifrs 7: r eclassification of financial instruments »
amendments to ias 39 and ifrs 7: r eclassification of financial instruments – effective date and transition. »
amendments to ifrs 1 and ias 27 c ost of an investment in a subsidiary, jointly-controlled entity or associate »
amendment to ias 39 financial instruments: r ecognition and measurement: eligible Hedged items »
embedded derivatives (amendments to ifric 9 and ias 39) »
ifric 12 service c oncession arrangements »
ifric 13 c ustomer loyalty Programmes »
ifric 14 ias 19 – the limit on a defined Benefit asset, minimum f unding r equirements and their interaction »
ifric 15 agreements for the c onstruction of r eal estate »
ifric 16 Hedges of a net investment in a f oreign operation »
ifric 17 distributions of non-cash assets to owners »
ifric 18 t ransfer of assets from customers »
improvements to ifrss »
r evised ifrs 1 first-time adoption of international financial r eporting standards  »
 
4 - Revenue information
r evenue for the group was generated solely within the adastra subsidiary and almost all of the revenue is from uk -based customers.  
the sources of revenue are recurring (software and hardware support contracts) and non-recurring (services and sale of software licenses 
and hardware). the split of revenues for the six months to 28 f ebruary 2009 is shown below.
	 Adastr a
	 8	months	t o	31	Aug	2008	 6	months	t o	28	F eb	2009	 14	months	t o	28	F eb	2009
  £000 £000 £000
 
r ecurring revenues - 4,043 4,043
non-recurring revenues  -  3,284 3,284
	 	-		 7 ,327	 7 ,327
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 35
5 - Profits from operations
	 14	months	t o	28	F eb	2009	 14	months	t o	31	Dec	2007	
  £000 £000
Loss/(pr ofit)	fr om	oper a tions	is	sta t ed	a f t er	char ging/(cr editing):		 		
Loss/(pr ofit)	on	disposal	o f	fix ed	asse ts	 19		 -
	 		
Depr ecia tion	o f	tangible	fix ed	asse ts	 	 	
-	o wned	asse ts	 106		 -
-	le ased	asse ts		 1		 -
	 		
Amortisa tion	o f	intangible	fix ed	asse ts	 	 	
-	c apitalised	de v elopment	c osts	 62		 -
-	o ther	intangible	asse ts	 374		 -
	 		
Oper a ting	le ase	–	le ase	pa yments	
-	hir e	o f	plant	and	machinery	–	oper a ting	le ases	 15	 -
-	hir e	o f	o ther	asse ts	–	oper a ting	le ases	 472	 -
Ne t	f or eign	curr ency	tr ansla tion	loss/(gain)	 (25)	 -
	
Audit	servic es	 	
F ees	pa y able	t o	the	C ompan y ’ s	Audit ors	f or	the	audit	o f	the		 14	 6	
C ompan y	and	c onsolida t ed	financial	sta t ements	 	
	 		
F ees	pa y able	t o	the	C ompan y ’ s	Audit ors	and	its	associa t es		
f or	o ther	servic es:	
Audit	o f	the	C ompan y ’ s	subsidiaries	 27	 15
Other	servic es	pursuant	t o	legisla tion	 5	 -
T a x a tion	servic es	 3	 -
Other	servic es	 13	 -
 
the fees paid to the company’s auditors include fees for the prior auditors (deloitte & t ouche and mfw) in addition to the  
current auditor (Bdo s toy Hayward).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
Notes to the consolidated financial statements (cont) 36
Notes to the consolidated financial statements (cont)
6 - Finance income and costs
	 8	months	ended	 6	months	ended	 14	months	ended	 14	months	ended	
	 31	Aug	2008	 28	F eb	2009	 28	F eb	2009	 31	Dec	2007
  £000  £000 £000 £000
    
Bank interest receivable 87  278  365  225 
	
T o tal	financial	inc ome	 87		 278		 365		 225	
     
Bank interest payable - (1) (1) -
interest charge related to dilapidation provision - (4) (4) -
interest payable on finance leases - (1) (1) -
T o tal	financial	c osts	 -	 (6)	 (6)	 -
 
7 -  Employee expenses
	 8	months	ended	 6	months	ended	 14	months	ended	 14	months	ended	
	 31	Aug	2008	 28	F eb	2009	 28	F eb	2009	 31	Dec	2007
  £000  £000 £000 £000
    
wages, salaries and fees 65  2,262  2,327  -
social security costs - 296  296 -
Pension costs - 139 139  -
   
 65  2,697  2,762 -
share-based payment - 244  244  -
Total  65  2,941 3,006  -
 
The	a v er age	monthly	number	o f	emplo y ees	o f	the	Gr oup		
(including	dir ect ors)	during	the	period	w as:
     
development and operations - 119  51  -
sales and marketing - 17  7  -
administration - 8  4  -
central 4 3  4  -
 4 147  66  -
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 37
7 -  Employee expenses (cont) 
Remuneration of the directors of the company was as follows: 
	 8	months	ended	 6	months	ended	 14	months	ended	 14	months	ended	
	 31	Aug	2008	 28	F eb	2009	 28	F eb	2009	 31	Dec	2007
  £000  £000 £000 £000
    
emoluments 65 199  264  -
contributions to defined contribution pension schemes - 4 4 -
 65	 203		 268		 -
share-based payments - 175  175  -
    
total 65		 378		 443		 -
     
Highest	paid	dir ect or:    
gross salary - 8  8  -
car and other benefits in kind - 2  2  -
waived salary to charity - 97  97  -
contributions to defined contribution pension schemes - - - -
 -	 107	 107		 -
in the fourteen months to 28 february 2009, three directors 
were paid as employees and one was paid via a consulting 
charge from marwyn capital llP (included in the above table).
vinodka murria waived the right to her full salary and benefits 
(under her employment contract) and elected to receive 
£15,000 gross salary per annum plus provision of a company 
car. the difference in salary, plus other benefit and national 
insurance saved by the company was paid to the charity of 
vinodka’s choice (Ps foundation).
at 28 february 2009, one director (2007: nil) accrued benefits 
under a defined contribution scheme. 
the directors believe that the key management personnel are 
the executive and non executive directors only.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
Notes to the consolidated financial statements (cont) 38
Notes to the consolidated financial statements (cont)
8 - Taxation
	 14	months	t o	28	F eb	2009	 14	months	t o	31	Dec	2007	
	 	 R esta t ed	
  £000 £000
		 	
uKc orpor a tionta x 390 -
uKde f err edta x (88) -
	
		 302		 	-	
the tax charge for the 14 month period is slightly lower than the standard rate of 28% (2007: 30%) corporation tax in the uk .  
the difference is explained below. 
	 14	months	t o	28	F eb	2009	 14	months	t o	31	Dec	2007	
	 	 R esta t ed	
  £000 £000
	
T a x	r ec oncilia tion: 
Pr ofit/(loss)onor dinaryactivitiesbe f or eta x 1 ,093 (866)
  
UK	c orpor a tion	ta x	a t	28%	(30%)	 306	 (260)
 
Ef f ects	o f:
It emsno tdeductible/ta x ablef orta xpurposes 142 18
Additionaldeductionf orR&De xpenditur e (80)
lossesc arriedf orw ar dt ofutur eperiods - 242
lossesbr oughtf orw ar dfr ompriorperiods (66) -
  
T a x	char ge	f or	the	period	 302		 -
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 39
9 - Earnings per share
 
the basic earnings/(loss) per share has been calculated by dividing the net profit/(loss) attributable to ordinary shareholders by the 
weighted average number of shares in issue during the relevant period.
	 8	months	ended	 6	months	ended	 14	months	ended	 14	months	ended	
	 31	Aug	2008	 28	F eb	2009	 28	F eb	2009	 31	Dec	2007	
	 	 	 	 R esta t ed
  £000  £000 £000 £000
    
net (loss)/earnings attributable to ordinary shareholders (£)  (365,742) 1,156,591  790,849  (865,362)
weighted average number of ordinary shares in issue 46,885,608  171,382,354  99,906,575  45,000,000
Basic	(loss)/e arnings	per	shar e	 (0.8p)	 0.7p	 0.8p	 (1.9p)
Diluted (loss)/earnings per share
 8	months	ended	 6	months	ended	 14	months	ended	 14	months	ended	
	 31	Aug	2008	 28	F eb	2009	 28	F eb	2009	 31	Dec	2007	
	 	 	 	 R esta t ed
  £000  £000 £000 £000
    
weighted average number of ordinary shares in issue 46,885,608  171,382,354  99,906,575  45,000,000 
adjustment for emi - 270,911  270,911  -
	 		
W eight ed	a v er age	number	o f	po t ential	 46 ,885 ,608	 171 ,653 ,265	 100 ,177 ,485	 45 ,000 ,000	
Or dinary	shar es	in	issue
Dilut ed	basic	(loss)	/e arnings	per	shar e	 (0.8p)	 0.7p		 0.8p		 (1.9p)
the diluted profit per share has been calculated by dividing the 
net profit attributable to ordinary shareholders by the weighted 
average number of shares in issue during the period, adjusted 
for potentially dilutive shares. 
in accordance with ias 33, the shares held by the employee 
Benefit trust are excluded from the weighted average calculation 
as are options that are still contingently issuable in accordance 
with ias 33.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
Notes to the consolidated financial statements (cont) 40
Notes to the consolidated financial statements (cont)
10 - Acquisitions
	 Book	v alue	 Adjustment	 F air	v alue	a t	ac quisition
  £000 £000 £000
	 		 	
Property, plant and equipment 1,097  3  1,100 
inventories 674  (31) 643
trade and other receivables 1,317  - 1,317 
cash and cash equivalents 2,697  - 2,697 
trade and other payables (3,367) - (3,367)
other creditors (316) 17  (299)
Brand - 375  375 
technology - 375  375 
customer relationships - 2,805  2,805 
deferred tax liability - (995) (995)
	 2 ,102		 	2 ,549		 	4 ,651	
    
goodwill on acquisition   8,616 
	 	 	 	 	
C onsider a tion	paid	 	 	 13 ,267 
     
shares   (6,850)
cash acquired   (2,697)
amounts owing at 28 f ebruary 2009   (126)
	 	 	 	 	
Ne t	c ash	outflo w	(including	e xpenses	o f	£432k)	 	 	 3 ,594	
on 29 august 2008, the group acquired 100% of adastra 
software ltd (adastra), a uk -focused business providing software 
and hardware to Primary care providers. in the six months to 28 
february 2009, adastra contributed a net profit of £2.0m to the 
group, or £1.7m after restructuring and transaction costs. 
Had the acquisition taken place on 1 january 2008, adastra 
would have contributed £15.0m in revenue and £2.2m in profit 
after tax. excluding restructuring and transaction costs, adastra 
would have contributed £3.0m for the fourteen months to 28 
february 2009.
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 41
10 - Acquisitions (cont)
the fair value of the shares issued was determined by reference 
to their quoted market price of 17 pence per share at the date 
of acquisition.
on acquisition of adastra, all assets were fairly valued and 
appropriate intangible assets recognised following the principals 
of ifrs 3. a deferred tax liability relating to these three 
intangible assets was also recognised. management identified 
three material intangible assets:
Brand »
technology »
customer contracts and relationships. »
BRAnd
the adastra brand has been valued on an income basis. 
a theoretical royalty payment of 1.5% of future estimated 
revenues (based on revenues acquired on existing customer 
relationships) minus corporation tax was calculated and then 
discounted at the weighted average cost of capital to identify 
the fair value of the brand at acquisition. management believe 
that the brand has a useful economic life of four years and 
therefore the intangible asset recognised will be amortised over 
this period.
TEChnoloGy 
the adastra technology has been valued on an income basis.  
a theoretical royalty payment of 1.5% of future estimated 
revenues (based on revenues acquired on existing customer 
relationships) minus corporation tax was calculated and then 
discounted at the weighted average cost of capital to identify 
the fair value of the brand at acquisition. management believe 
that the adastra technology has a useful economic life of four 
years and therefore the intangible asset recognised will be 
amortised over this period.
CusToMER ConTRACTs And RElATionships
the customer contracts were valued on an income basis, having 
taken account of the use of other resources (such as working 
capital, fixed assets and brand and technology costs) and of 
corporation tax. the value of the future profits on these contracts 
was then discounted at the weighted average cost of capital. 
management believe that these customer relationships have a 
minimum useful economic life of five years and therefore the 
intangible asset recognised will be amortised over this period.
Assumptions
the assumptions used for valuing the intangibles above included 
the weighted average cost of capital (12.75% pre-tax) and 
assumptions around levels of new and lost revenue and costs 
needed to generate those revenues.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
Notes to the consolidated financial statements (cont) 42
Notes to the consolidated financial statements (cont)
11 - Intangible assets
	 C ust omer	c ontr acts	and	r ela tionships	 Br and	 T echnology	 Goodwil l	 R&D	 T o tal
   £000  £000 £000 £000 £000
C ost      
at 1 january 2008 - - - - - -
fair value of adastra 2,805 375 375 8,616 775 12,946
additions in the period - - - - 135 135
A t	28	F ebruary	2009	 2 ,805	 375	 375	 8 ,616	 910	 13 ,081
Depr ecia tion      
at 1 january 2008 - - - - - -
fair value of adastra - - - - (212) (212)
charge for the period (281) (47) (47) - (61) (436)
A t	28	F ebruary	2009	 (281)	 (47)	 (47)	 -	 (273)	 (648)
Ne t	book	v alue      
A t	28	F ebruary	2009	 2 ,524	 328	 328	 8 ,616	 637	 12 ,433
Ne t	book	v alue      
A t	1	January	2008	 -	 -	 -	 -	 -	 -
iMpAiRMEnT TEsTs FoR CAsh-GEnERATinG 
 uniTs ConTAininG Goodwill
the goodwill on the balance sheet relates to the acquisition 
of adastra and is calculated as: the total consideration paid 
(including fees) less the fair value of the net assets acquired.
this goodwill has then been tested for impairment as at 28 
february 2009 following ias 36 criteria.
to confirm that no impairment of the goodwill is necessary, 
management compared the carrying value to the value in use. 
the value in use was calculated using a simple multiple of the 
adastra 2009-10 budget ending 28 f ebruary 2010 as approved 
by the Board. the expected acs central costs were allocated 
to the adastra cash-generating unit and no growth in revenues 
or profit were assumed in the following years. as such, the 
directors believe that the value in use is conservative.
the discount factor has been determined as 12.45% (pre-tax) 
based on beta values of similar companies in the same industry 
adjusted to reflect management’s assessment of specific risks 
related to the cash generating unit. this discount factor also 
ties into the valuation of the adastra intangible assets acquired 
under ifrs3.
the key assumptions used and the approach to determining 
their value are:
Assump tion	 Ho w 	 De t ermined
operating margin this is based on a detailed budget for 2009-10
terminal value none
a discount rate of 18% would result in the carrying value of the 
goodwill to be equal to the value in use.
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 43
12 - Property, plant and equipment
	 	 Offic e	equipment	 C omput er	
	 Le asehold	pr operty	 	&	furnitur e	 equipment	 T o tal
  £000  £000 £000 £000
C ost    
at 1 january 2008 - - - -
adastra acquisition 114 546 918 1,578
additions in the period 6 8 6 20
disposals - (38) - (38)
    
A t	28	F ebruary	2009	 120	 516	 924	 1 ,560
     
Depr ecia tion    
at 1 january 2008 - - - -
adastra acquisition 46 342 652 1,040
charge for the period 6 40 61 107
disposals - (19) - (19)
    
A t	28	F ebruary	2009	 52	 363	 713	 1 ,128
     
Ne t	book	v alue    
A t	28	F ebruary	2009	 68	 153	 211	 432
     
Ne t	book	v alue
A t	1	January	2008	 -	 -	 -	 -
the company had no tangible assets prior to the acquisition of adastra software ltd in august 2008. the net book value of assets held 
under finance lease as at 28 february 2009 was £nil (2007: nil).
13 - Inventories
	 28	F eb	2009	 31	Dec	2007	
  £000 £000
		 	
Finishedgoodsandgoodsf orr esale 239 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
Notes to the consolidated financial statements (cont) 44
Notes to the consolidated financial statements (cont)
14 - Trade and other receivables
	 28	F eb	2009	 31	Dec	2007	
  £000 £000
		 	
C urr ent 
trade receivables 1,438 -
other receivables 2 -
Prepayment and accrued income 427 16 
 
 1 ,867	 16	
15 - Cash and cash equivalents
	 28	F eb	2009	 31	Dec	2007	
  £000 £000
		 	
cash at Bank 2,602 4,249 
Bank short-term deposits 12,054  - 
 
 14 ,656	 4 ,249	
16 - Trade and other payables: current
	 28	F eb	2009	 31	Dec	2007	
  £000 £000 
  r estated
		 	
trade payables 891 473
taxation and social security 929 -
accruals and deferred income 793 270
other payables 361 - 
 
 2 ,974	 743
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 45
17 - Deferred tax liability
deferred taxation is calculated in full on temporary differences under the liability method using the taxation rate 28% (2007: 30%).  
deferred taxation assets have been recognised on temporary differences where the directors believe that it is probably that these assets 
will be recovered.
	 	 28	F ebruary	2009		 	 31	Dec ember	2007	
	 Asse t/	(liability)	 Cr edit	t o	Inc ome	 Asse t/	(liability)	 Cr edit	t o	Inc ome
  £000  £000 £000 £000
    
accelerated capital allowances (42)  10  -  - 
short-term temporary differences (1,051)  78  -  - 
taxation losses -  -  -  - 
	 (1 ,093)		 88		 -		 -
subject to agreement with the inland r evenue, the group has united kingdom tax losses of approximately £529,000 at 28 f ebruary 2009 
(31 december 2007: £766,000) available to relieve future trading profits in the united kingdom.  
 
18 - Provisions: non-current
the non current provision relates to dilapidations on the two buildings leased by the group.
at 1 january 2008 -
 
adastra acquisition 113
unwinding of discount 5
A t	28	F ebruary	2009	 118
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
Notes to the consolidated financial statements (cont) 46
Notes to the consolidated financial statements (cont)
19 - Financial instruments
the group’s financial instruments are comprised of the following elements:
	 14	months	ended	28	F eb	2009	 14	months	ended	31	Dec	2007	
  £000 £000
		 	
Asse ts 
trade and other receivables 1,467 16
cash and cash equivalents 14,656 4,249 
 
 16 ,123	 4 ,265
 
 
	 14	months	ended	28	F eb	2009	 14	months	ended	31	Dec	2007	
  £000 £000
		 	
Liabilities 
trade and other payables (1,529) 743
 
 (1 ,529)	 743
the fair value of the financial instruments is equal to the 
carrying value.
in the normal course of the group’s business and in common 
with other businesses, the group encounters risks that arise 
from financial instruments. this note describes the group’s 
objectives, policies and processes in managing these risks and 
the methods used to measure them. the group has changed 
its objectives, policies and processes and its methods in 
the fourteen month period to 28 february 2009 due to the 
acquisition of adastra, which has brought new risks, such as 
credit risk, into the group. additional information can be found 
in other notes of the financial statements where appropriate.
financial risks:
credit »
market: interest and currency »
liquidity »
capital management »
CREdiT RisK
credit risk is the risk that a counter party to a transaction with 
the group fails to discharge its obligations in respect of the 
instrument. the group’s credit risk arises on (i) transactions with 
customers following delivery of goods and/or services or on 
(ii) cash and cash equivalents placed with banks and financial 
institutions.
C ust omers
the group provides services to government-backed organisations 
(for example, nHs Primary c are trusts) and to a limited extent, 
to commercial businesses supplying the same organisations. a 
small level of revenues is generated form outside of the uk , 
namely the netherlands and ireland.
management focuses strongly on working capital management 
and the collection of due invoices. r egular reports of over due 
invoices are circulated amongst senior management who co-
ordinate collections from the relevant customer. the group Board 
also reviews debtor days each month as part of the monthly 
reporting cycle. the risk with any one customer is limited by 
constant review of debtor balances and action to resolve any 
issues preventing discharge of obligations.
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 47
19 - Financial instruments (cont)
in the six months to 28 february 2009 that adastra was part 
of the group, no debts were written off due to bad credit. 
moreover, no provision for bad debt was considered necessary 
as at 28 february 2009 or on acquisition at 29 august 2008.
the table below shows the ageing of trade debtors that are past 
due invoice date and not impaired as at 28 february 2009.
	 < 3	months	 3- 6	months	 >6	months
  £000 £000 £000
	 	 		
T r ade	r ec eiv ables 1,644  18  2 
28	F ebruary	2009 
 
at the balance sheet date there were no significant 
concentrations of credit risk albeit the majority of the trade 
debtors are ultimately due from the uk government sector. the 
maximum exposure to credit risk is represented by the carrying 
amount of the trade and other receivables in the balance sheet.
C ash	and	c ash	equiv alents
the group places cash and cash equivalents with banks to earn 
interest. due to the uncertainty within the financial sector over 
recent months, the cash has been placed with four banks to 
reduce the concentration of cash and/or deposit with any one 
institution. as at 28 f ebruary 2009, all the £14.7m cash was 
placed with uk banks and no one bank held more than £5.5m 
of the balance.
MARKET RisK
market risk is the risk that the fair value or cash flows of a 
financial instrument will fluctuate due to changes in market 
prices. in managing interest rate and currency risks, the group 
aims to reduce the impact of short term fluctuations on the 
group’s earnings. over the longer term, however, permanent 
changes in interest rates and foreign exchange would have an 
impact on consolidated earnings.
Interest rate risk
the group has no borrowings and therefore no financial 
liabilities affected by interest rate fluctuations.
the group has cash balances and therefore the group’s earnings 
from cash are affected by interest rate fluctuations. management 
aims to maximise interest earnings but balances that aim with 
diversification of cash balances across financial institutions and 
with short-term treasury deposits. these short-term deposits 
earn fixed rates of interest and are placed for under three 
months each time.
at 28 february 2009, it is estimated that a general decrease 
of one percentage point in interest rates would decrease the 
group’s profit before tax by approximately £100,000  
(2007: £30,000). 
the weighted average interest rates earned on cash and cash 
deposits as at the balance sheet dates were:
	 28	F eb	2009	 31	Dec	2007
	 		
C ash	and	c ash	equiv alents 1.87%  5.50% 
 
Currency risk
the group earns small levels of revenue from outside the 
uk , denominated in euros. the value of recurring revenues is 
converted at each invoice date from a fixed sterling value to a 
varied euro value and thereby minimising the currency risk to the 
group. it is not group policy to enter into hedging arrangements 
to mitigate currency risk as most of the transactions due to the 
disproportionate cost versus minimised risk.
all cash and cash equivalents at 28 f ebruary 2009 were 
denominated in sterling.
liquidiTy RisK
liquidity risk is the risk that the group cannot meet financial 
liabilities when they fall due. the group’s policy for managing 
liquidity risk is to ensure that the business has enough financial 
resource to meet its day to day activities at any point in 
time. the group had cash of £14.7m and no borrowings at 28 
february 2009.
financial liabilities at 28 february 2009 were principally due 
within one year and totalled £2.0m. cash in hand was £14.7m at 
the same date and therefore management believes that the cash 
resources on hand, together with the profits of the business more 
than cover the resources needed to meet the financial liabilities.
CApiTAl MAnAGEMEnT
the group manages its capital structure to safeguard the going 
concern of the group and provide returns for shareholders 
and benefits for other stakeholders. the capital structure of 
the group consists of equity (including share capital, retained 
earnings and other reserves).
the group may maintain or adjust capital structure by issuing new 
shares, returning capital to shareholder or by paying dividends.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
Notes to the consolidated financial statements (cont) 48
Notes to the consolidated financial statements (cont)
20 - Commitments
opERATinG lEAsEs
future minimum lease payments under non-cancellable operating leases are as follows:
	 Land	&	buildings	 Other		 Land	&	buildings	 Other
	 28	F eb	2009	 28	F eb	2009	 31	Dec	2007	 31	Dec	2007
  £000  £000 £000 £000
    
within one year 171  315  - -
in two to five years 684  232  - -
in more than five years  158  32  - -
	 1 ,013	 579	 -	 -
pEnsion CoMMiTMEnTs
the group has no defined-benefit pension schemes in place. the group pays defined contributions into a group Personal Pension Plan and 
individual pension plans. the assets of each of these plans are held separately from those of the group in independently administered funds.
the pension charge represents contributions payable by the group and amounted to £139,000 (2007: £nil).  c ontributions payable at the 
year end amounted to £23,000 (2007: £nil).
21 - Related Parties
 
mark watts is a partner in marwyn capital llP , marwyn 
management Partners lP and marwyn investment management 
limited. the c ompany entered into a corporate finance 
agreement with marwyn capital llP in 2008 but this was later 
cancelled and no monies were paid under the agreement. in 
compensation for cancelling the agreement £90,000 was paid 
to marwyn capital llP in relation to the work undertaken during 
the acquisition of adastra and the equity raising in august 2008.
marwyn neptune f und, a substantial shareholder in the 
company, is managed on an arm’s length basis by marwyn 
investment management limited. marwyn neptune f und 
currently holds 41,000,000 shares via its nominee, vidacos 
nominees limited representing 21 per cent. of the issued equity 
of the company.
 
during the period ending 28 f ebruary 2009, the company paid 
fees of £105,000 (31 december 2007 - £45,000) for corporate 
finance advisory services to marwyn capital llP .
co-investment capital llc (“cic”) entered into an agreement 
with the company pursuant to which it was entitled to a Placing 
commission of £90,000 in connection with the Placing during 
the period. marwyn is a 50 per cent partner in cic.
marwyn management Partners l.lP has been issued options to 
subscribe for ordinary shares and details of these options are 
outlined in note 24 of the financial statements.
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 49
22 - Group entities
ConTRol oF ThE GRoup
the company believes there is no overall controlling party of advanced computer software Plc
Significant subsidiaries
	 C ountry	o f	Inc orpor a tion	 Principal	activity		 Class	o f	shar e	held	 P er c entage	held
    
drury lane (jersey) ltd 
1
 jersey Holding company ordinary shares 100%
3
 
adastra software ltd 
2
 england software ordinary shares 100%
 
owl software ltd 
2
 england dormant – dissolution requested ordinary shares 100%
 
adastra technical services ltd 
2
 england dormant – dissolution requested ordinary shares 100%
 
adv management services ltd 
2
 england group services ordinary shares 100%
     
adv e-Health ltd 
2
 england dormant ordinary shares 100%
1
 owned directly by advanced c omputer software Plc
2
 owned by drury lane (jersey) ltd or one of its subsidiaries.
3
  advanced computer software Plc holds 100% of the voting rights in drury lane (jersey) ltd. the other shareholders are the management 
Participation shares which have no voting rights.
23 - Called up share capital and reserves 
	
	 28	F eb	2009	 28	F eb	2009	 31	Dec	2007	 31	Dec	2007
  no.  £ no. £
	
Authorised	f or	issue    
ordinary shares of £0.10 each - - - -
Or dinary	shar es	 500 ,000 ,000	 50 ,000 ,000	 100 ,000 ,000	 10 ,000 ,000
     
Al lo t t ed,	c al led	up	and	ful ly	paid    
ordinary shares of £0.10 each - - - -
Or dinary	shar es	 190 ,920 ,170	 19 ,092 ,017	 45 ,000 ,000	 4 ,500 ,000
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
Notes to the consolidated financial statements (cont) 50
Notes to the consolidated financial statements (cont)
23 - Called up share capital and reserves (cont) 
during the period to 28 f ebruary 2009, the company issued new equity and adopted new articles of association. these changes are 
reflected in the table above and the detail of new shares issued noted below. 
	 No .	 £000
		 	
Shar es	issued	a t	inc orpor a tion		 2	 0
	
Shar essub - dividedt o10por dinaries 20 0
Shar esissuedf orc ash 44 ,999 ,980 4 ,500
 
Shar es	in	issue	a t	1	January	2008	 45 ,000 ,000		 	4 ,500
Shar esissuedf orc ash 86 ,088 ,235 8 ,608
Shar esissuedasc onsider a tion 40 ,294 ,119 4 ,029
Shar esissuedt oEmplo y eeBenefitT rust 19 ,537 ,816 1 ,954
 
Shar es	in	issue	a t	28	F ebruary	2009	 190 ,920 ,170		 19 ,092	
For the fourteen months to 28 February 2009
	 Or dinary	shar e	 Shar e	 Mer ger	 Shar e	trust	 R e tained	 T o tal	
	 c apital	 pr emium	 r eserv e	 r eserv e	 e arnings	
	 	 	 	 	 r esta t ed
  £000 £000  £000 £000 £000 £000
       
Balanc e	a t	1	January	2008	 4 ,500		 -	 -	 -	 (978)	 3 ,522	
	
Issue	o f	shar e	c apital	
for cash 8,609  6,026  - - - 14,635 
to employee Benefit trust 1,954  - - (1,954) - -
in respect of acquisition of subsidiary 4,029  - 2,821  - - 6,850 
costs of issuing share capital - (600) - - - (600)
share based payment      244  244 
Profit for the period - - - - 791  791 
Balanc e	a t	28	F ebruary	2009	 19 ,092		 5 ,426		 2 ,821		 (1 ,954)	 57		 25 ,442	
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 51
23 - Called up share capital and reserves (cont) 
For the fourteen months to 31 December 2007
	 Or dinary	shar e	 Shar e	 Mer ger	 Shar e	trust	 R e tained	 T o tal	
	 c apital	 pr emium	 r eserv e	 r eserv e	 e arnings	
	 	 	 	 	 R esta t ed
  £000 £000  £000 £000 £000 £000
       
Balanc e	a t	Inc orpor a tion	 -	 -	 -	 -	 -	 -	
	
Issue	o f	shar e	c apital	
for cash 4,500  - - - - 4,500 
costs of issuing share capital - - - - (112) (112)
loss for the fourteen months to 31 december 2007 - - - - (866) (866)
Balanc e	a t	31	Dec ember	2007	 4 ,500		 -	 -	 -	 (978)	 3 ,522	
shARE pREMiuM REsERvE
this represents the amounts subscribed for share capital in excess of the nominal value of those shares.
MERGER REsERvE
the merger reserve represents the difference between the fair value and nominal value of the 40,294,119 ordinary shares allotted to the 
vendors of adastra software ltd on 29 august 2009.
shARE TRusT REsERvE
the company allotted 19,537,816 ordinary shares of £0.10 to the employee Benefit trust (‘eBt’). the trust reserve represents the amount 
owing for those shares from the eBt.
pRoFiT And loss ACCounT
cumulative net gains and losses recognised in the consolidated income statement.
24 - Share options and management incentives 
shARE opTion sChEMEs
the company implemented three share-based schemes in the fourteen months to 28 february 2009 that are valued under ifrs2 and 
create a share-based payment in the income statement. 
the three schemes are:
enterprise management incentive (emi) »
marwyn Participation option (mPo) »
management Participation shares (mPs). »
the group recognised a total expense of £0.24m for the three share-based schemes implemented in the fourteen months to 28 f ebruary 2009.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
Notes to the consolidated financial statements (cont) 52
Notes to the consolidated financial statements (cont)
MAnAGEMEnT pARTiCipATion shAREs And MARwyn 
pARTiCipATion opTion
the number of shares that would be issued under the above 
schemes if the performance criteria had been met as at 28 
february 2009, varies according to the market capitalisation 
of the acs group. the number is calculated in two steps 1) a 
percentage of the increase in market capitalisation adjusted 
for new equity issued and dividends paid, less the market 
capitalisation as at august 2008 2) the value of 1) is then 
divided by the market share price less nominal value of the 
share. the percentage used in step 1 is as below: 
marwyn Participation option (mPo) 5%
management Participation shares (mPs) 15%
EnTERpRisE MAnAGEMEnT inCEnTivEs (EMi)
	
	 W eight ed	a v er age	e x er cise	pric e		 W eight ed	a v er age	e x er cise	pric e
	 P enc e	 Number	 P enc e	 Number
  2009  2009 2009 2009
 
outstanding at beginning of the period                                -                     - -                   - 
granted during the period                         10.00    1,600,000 - -	
Outstanding	a t	the	end	o f	the	period	 																								10.00		 			1 ,600 ,000	 -	 -	
the exercise price of options outstanding at the end of the period was 10p (2007 nil pence) and the weighted average contractual life was 
10 years (2007 nil years).
none of the outstanding options at the period end had vested (2007 - nil).  
the weighted average fair value of each option granted druing the year was £7.74 (2007 - £nil). 
the following information is relevant in the determination of the fair value of options granted in the year:
	 2009	 2007
Op tion	model	used	 Binomial	v alua tion	 N/A

W eight eda v er agec ontr actuallif e(y e ars) 10.00 -
W eight eda v er agee x er cisepric e(penc e) 10.00 -
E xpect eddividendyield(%) - -
E xpect edv ola tility(%) 25.88 -
Riskfr eeint er estr a t e(%) 4.37 -
W eight eda v er ageshar epric ea tgr ant(penc e) 14.38 -
Thev ola tilityassump tionisbaseduponhist oric alda taandc omparisont oo therAIm-list edt echnologybusinesses .
A t28F ebruary2009thef ol lo wingop tionsw er eoutstandinginr especto fOr dinaryshar es
D a t e	o f	gr ant	 Number	 E x er cise	pric e	 E x er cise	period
 
14/10/08 1,500,000  10                                  
19/01/09 100,000 10
24 - Share options and management incentives (cont)
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 53
24 - Share options and management incentives (cont)
 
the principal performance criteria for both schemes is that the share price increases more than 11% per year.  any new equity issued 
(such as the conditional placing announced in may 2008) is adjusted for so that the participants of the scheme do not directly benefit 
from the increased market capitalisation. 
the table below shows the resulting number of shares based on a range of market capitalisation as at 28 f ebruary 2009.
Pric epershar e 0.17 0.22 0.28
Hur d ler a t eachie v ed no y es y es
mark e tc apitalisa tiona tabo v eshar epric e(£) 31 ,501 ,828 42 ,002 ,437 52 ,503 ,047
T o talv aluea w ar dedundermPO+mPS(£) - 1 ,909 ,287 4 ,009 ,409
Numbero fshar es - 15 ,910 ,729 22 ,910 ,911
 
the exercise price of options outstanding at the end of the period was 10p (2007 nil pence) and the weighted average contractual life 
was 4 years (2007 nil years).    
none of the outstanding options at the period end had vested (2007 - nil).    
the following information is relevant in the determination of the fair value of options granted in the year: 
	 2009	 2007
option model used Binomial valuation n/a
weighted average contractual life (years)  4.00   - 
weighted average exercise price (pence) 10   - 
expected dividend yield (%)  -   - 
expected volatility (%) 20.00   - 
risk free interest rate (%) 4.76   - 
weighted average share price at grant (pence) 17.00   -
 
the volatility assumption is based upon historical data and comparison to other aim-listed technology businesses.
25 - Subsequent events
oFFER To ACquiRE BsG
on the 8th may, acs announced its intention to make an offer to Business s ystems group Holdings Plc (“Bsg”) and subsequently made 
the offer on 21 may 2009. the offer values the fully diluted share capital of Bsg at approximately £15.5 million (net of the cash received 
on exercise of options).  the total consideration is to be paid: £12m in cash and £3.5m through the issue of 14,000,000 new ordinary 
shares of 10 pence at a price of 25 pence per share.
Bsg provides outsourced managed services, designing, deploying and operating all or part of its clients’ technical infrastructure and 
system operations. the business’s services range from the delivery of complex infrastructure design and operation, to the development of 
business applications and their hosting and support.
the acquisition of Bsg will enable acs to provide immediately effective hosting, managed services and outsourcing capabilities to its 
customers across the nHs Primary c are sector. the acquisition will allow for expansion and faster roll out of acs’s core growth products 
for out-of-Hours care, walk-in centres, Polyclinics, urgent care centres and for the rapid rollout of inurse and end of life applications. 
the acquisition will support the recurring hosted (saas) model of these applications across the nHs , charities, and communities.
EquiTy issuE
on 21 may 2009, acs announced that it had conditionally raised £43.575m (before expenses) through a placing of 145,250,000 new 
ordinary shares of 10 pence at a price of 30 pence per share.  a general meeting to authorise the issue of new shares related to the 
placing and to the acquisition of Bsg is scheduled to be held on 8 june 2009.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
Notes to the consolidated financial statements (cont) 54
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 COMPANy BALANCE SHEET
Company balance sheet
As at 28 February 2009
	 notes	 	28	F ebruary	2009	 31	Dec ember	2007
   £000 £000
Fix ed	Asse ts    
investment in subsidiary undertakings 3 13,454 -
amounts owed by subsidiary undertakings  1,954 -
	 		 	
T o tal	non- curr ent	asse ts	 	 15 ,408		 -
C urr ent	asse ts    
other receivables 4 6 16 
amounts owed by subsidiary undertakings  9,652  -
cash and cash equivalents 5 2,040 4,249 
deferred taxation 6 16 -
	 	 11 ,714		 4 ,265 
     
Cr edit ors:	amounts	f al ling	due	within	one	y e ar	 7	 (323)	 (743)
	 		 	
Ne t	curr ent	asse ts	 	 11 ,391		 3 ,522	
 
total assets less current liabilities  26,799  3,522 
 
creditors: amounts falling due after more than one year 8 (1,954) -
Ne t	asse ts	 	 24 ,845		 3 ,522 
C apital	and	r eserv es
share capital 10  19,092  4,500 
share premium 10 5,426 -
merger reserve 10  2,821  -
share trust reserve 10 (1,954) -
capital contribution reserve 10 187  -
r etained earnings 10 (727) (978)
	 		 	
Shar eholders ’	funds	 	 24 ,845		 3 ,522	
these financial statements were approved by the board of directors and authorised for issue on 5 june 2009 and  
were signed on its behalf by:
K ar en	Bach 
chief financial officer NOTES TO THE FINANCIAL STATEMENTS OF THE COMPANy ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
55
Notes to the financial statements of the company
1 - Accounting policies
the following accounting policies have been applied consistently 
in dealing with items which are considered material in relation 
to the company’s financial statements. 
BAsis oF pREpARATion
the financial statements have been prepared in accordance with 
applicable accounting standards generally accepted in the united 
kingdom and under the historical cost convention. the accounts 
have been prepared on the going concern basis.
pRoFiT And loss ACCounT
under section 230(4) of the companies act 1985 the company 
is exempt from the requirement to present its own profit and 
loss account. the profit for the fourteen months ended 28 
february 2009 is disclosed in note 11.
TAxATion
current tax, including uk corporation tax is provided at amounts 
expected to be paid (or recovered) using the tax rates and laws 
that have been enacted or substantively enacted by the balance 
sheet date. 
deferred tax is recognised, without discounting, in respect of 
all timing differences between the treatment of certain items 
for taxation and accounting purposes which have arisen but 
not reversed by the balance sheet date, except as otherwise 
required by financial r eporting standard 19: deferred tax. 
deferred taxation assets are recognised to the extent that it is 
regarded as more likely than not that they will be recovered.
invEsTMEnTs in suBsidiARiEs
investments in subsidiaries are stated at cost less provision of 
impairment value.
EMployEE BEnEFiT TRusT
as the company is deemed to have some control of the employee 
Benefit trust, it is treated as a subsidiary undertaking. the assets 
(other than investments in the company’s shares), liabilities, 
income and expenses are included on a line by line basis in the 
consolidated financial statements. the investment in the company’s 
shares is shown in the share trust reserve and is treated as a 
deduction from equity in the balance sheet.
shARE-BAsEd pAyMEnTs
the company operates equity-settled share based option plans. 
the fair value of the employee services received in
exchange for the participation in the plan is recognised as an 
expense in the profit and loss account. in accordance with uitf 
44: group and treasury transactions, the company has accounted 
for options granted to the employees of subsidiary undertakings 
as capital contributions, which have been recharged to the 
intermediate company holding the investment.
the corresponding credit has been recognised in the capital 
contribution reserve.
the fair value of the employee service is based on the fair value 
of the equity instrument granted. this expense is spread over 
the vesting period of the instrument. the corresponding entry is 
credited to equity. the liability for social security costs arising in 
relation to the awards is measured at each reporting date based 
upon the share price at the reporting date and the elapsed 
portion of the relevant vesting periods to the extent that it is 
considered that a liability will arise.
dividEnds
dividend distributions to the company’s shareholders are 
recognised in the period when paid or, if earlier, in which the 
dividend is approved by the company’s shareholders.
2 - Wages and salaries costs
advanced computer software Plc has four directors.  marwyn 
capital ll P received a fee in respect of the services provided 
by mark watts during the period.  the other three directors are 
borne by a subsidiary company and their remuneration details 
are detailed in note 7 of the group accounts.
	 14	months	ended		 14	months	ended 
 28	F eb	2009 31 	 Dec 	 2007 	 	
	 £000 £000
		 	
W ages ,	salaries	and	f ees	 9		 -
Social	security	c osts	 -	 -
P ension	c osts	 -		 -
 	 	
	 9		 -
3 - Investments in subsidiaries
	
	company	 £000
		
As	a t	1	January	2008	 -
Additions	 13 ,454
As	a t	28	F ebruary	2009	 13 ,454
the investment is the value of the company’s holding in  
drury lane (jersey) ltd. 
the undertakings in which the company’s interest at  
28 february 2009 is more than 20%, either directly or  
indirectly, are as follows: 56
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 NOTES TO THE FINANCIAL STATEMENTS OF THE COMPANy
3 - Investments in subsidiaries (cont)	
	
	 C ountry	o f	Inc orpor a tion	 Principal	activity	 Class	o f	shar e	held	 P er c entage	held
	
drury lane (jersey) ltd 
1
 jersey Holding company ordinary shares 100% 
3
adastra software ltd 
2
 england software ordinary shares 100%
owl software ltd 
2
 england dormant – dissolution requested ordinary shares 100%
adastra technical services ltd 
2
 england dormant – dissolution requested ordinary shares 100%
adv management services ltd 
2
 england group services ordinary shares 100%
adv e-Health ltd 
2
 england dormant ordinary shares 100%
1
 owned directly by advanced c omputer software Plc
2
 owned by drury lane (jersey) ltd or one of its subsidiaries.
3
  advanced computer software Plc holds 100% of the voting rights in drury lane (jersey) ltd. the other shareholders are the management 
Participation shares which have no voting rights.
4 - Other receivables
	 28	F eb	2009		 31	Dec	2007
 £000 £000
		 	
other debtors  6  16 	 	
	 6		 16
5 - Cash and cash equivalents
	 28	F eb	2009		 31	Dec	2007
 £000 £000
		 	
cash at Bank 1,490  4,249 
Bank short-term deposits 10,202 - 	 	
	 11 ,692	 4 ,249
6 - Deferred taxation
	 28	F eb	2009		 31	Dec	2007
 £000 £000
		 	
Short	t erm	dif f er enc es (16) -
 (16) -
 
A t	1	January	2008	 - - 
movement in the year (16) -
A t	28	F ebruary	2009	 (16)	 -
Notes to the financial statements of the company (cont) NOTES TO THE FINANCIAL STATEMENTS OF THE COMPANy ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
57
7 - Creditors: amounts falling due within one year 
	 28	F eb	2009		 31	Dec	2007
 £000 £000
		 	
trade creditors  289   473 
accruals   34   270 
  323		 	743 
8 - Creditors: amounts falling due after more than one year 
	 28	F eb	2009		 31	Dec	2007
 £000 £000
		 	
amounts due to group companies 1,954 -
	 	1 ,954	 -
9 - Called up share capital 
	 28	F eb	2009	 	 31	Dec2007	
  no.  £ no. £
	
Authorised	f or	issue    
ordinary shares of £0.10 each - - - -
Or dinary	shar es	 500 ,000 ,000	 50 ,000 ,000	 100 ,000 ,000	 10 ,000 ,000
     
Al lo t t ed,	c al led	up	and	ful ly	paid    
ordinary shares of £0.10 each - - - -
Or dinary	shar es	 190 ,920 ,170	 19 ,092 ,017	 45 ,000 ,000	 4 ,500 ,000
Notes to the financial statements of the company (cont) 58
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 NOTES TO THE FINANCIAL STATEMENTS OF THE COMPANy
9 - Called up share capital (cont) 
during the period to 28 f ebruary 2009, the company issued new equity and adopted new articles of association. these changes are 
reflected in the table above and the detail of new shares issued noted below.
	 No .	 £000
		 	
Shar es	issued	a t	inc orpor a tion		 2	 0
	
Shar essub - dividedt o10por dinaries 20 0
Shar esissuedf orc ash 44 ,999 ,980 4 ,500
 
Shar es	in	issue	a t	1	January	2008	 45 ,000 ,000		 	4 ,500
Shar esissuedf orc ash 86 ,088 ,235 8 ,608
Shar esissuedasc onsider a tion 40 ,294 ,119 4 ,029
Shar esissuedt oEmplo y eeBenefitT rust 19 ,537 ,816 1 ,954
 
Shar es	in	issue	a t	28	F ebruary	2009	 190 ,920 ,170		 19 ,092	
shARE opTion sChEMEs
the company has three option schemes in place: emi, mPo and mPs.  these schemes are detailed in the notes to the  
consolidated group accounts.
Notes to the financial statements of the company (cont) NOTES TO THE FINANCIAL STATEMENTS OF THE COMPANy ANNUAL REPORT 2009 ADVANCED COMPUTER SOFTWARE
59
10 - Share capital and reserves 
	 Shar e	 Shar e	 	 C apital	
	 c apital	 pr emium	 Mer ger	 c ontribution		 Shar e	trust	 Pr ofit	and		 T o tal	
	 ac c ount	 ac c ount	 r eserv e	 r eserv e	 r eserv e	 loss	ac ount
   £000  £000 £000 £000 £000 £000
	
as at 1 january 2008  4,500   -   - -  -  (714) 3,786 
Prior year adjustment - - - - - (264) (264)
  4,500   -   -   -   -  (978)  3,522 
issue of new shares  -   6,026   -   -   -   -  6,026 
for cash  8,609   -   -   -   -   -   8,609 
to employee Benefit trust  1,954   -   -   -  (1,954)  -   - 
in respect of acquisition of subsidiary  4,029   -   2,821   -   -   -  6,850 
costs of issuing share capital  -  (600) - - - - (600)
capital contribution reserve  -   -   -   187   -   -  187 
share based payment  -   -   -   -   -   57  57 
Profit for the period  -   -   -   -   -   194  194 
	 	 		 	 	 	
As	a t	28	F ebruary	2009	 	19 ,092		 	5 ,426		 	2 ,821		 	187		 (1 ,954)	 (727)	 24 ,845	
the company’s reconciliation of movements in shareholders’ funds is shown below:
	 28	F eb	2009		 31	Dec	2007
 £000 £000
		 	
Opening	shar eholders ’	funds		 	3 ,522		 -
Profit for the year  194  (978)
dividend paid - -
Profit for the year retained 194  (978)
issue of new shares (net of expenses)   20,885   4,500 
capital contribution reserve  187  -
share-based payments  57  -
net movement in shareholders’ funds  21,323   3,522
	
Closing	shar eholders ’	funds	 	24 ,845		 	3 ,522	
Notes to the financial statements of the company (cont) 60
ADVANCED COMPUTER SOFTWARE ANNUAL REPORT 2009 NOTES TO THE FINANCIAL STATEMENTS OF THE COMPANy
11 - Profit for the period
 
the profit for the period was £194,000 (2007: loss of £866,000).
included in the profit for the period is auditors’ remuneration of £14,000 in respect the audit fee (2007: £6,000). 
lEGAl FoRM
Public limited c ompany
CounTRy oF inCoRpoRATion
united kingdom
CoMpAny nuMBER
5965280
REGisTEREd AddREss
Quadrant House, floor 6 
17 thomas more street 
thomas more square 
london  
e1w 1yw united kingdom
noMinATEd AdvisoR And BRoKER
seymour Pierce ltd 
20 old Bailey 
london  
ec4m 7en
BAnKERs
Barclays Bank Plc 
level 28 
1 churchill Place 
london  
e14 5HP
AudiToRs
Bdo s toy Hayward llP 
2 city Place 
Beehive ring r oad 
gatwick 
west sussex 
rH16 0Pa
soliCiToRs
cms cameron mckenna llP 
mitre House 
160 aldersgate street 
london 
ec1a 4dd
Company information
Notes to the financial statements of the company (cont) connecting for Health cfH  the agency responsible for the strategy and framework of it in the nHs in england. cfH 
reports to the dH.
department of Health dH the government ministry responsible for delivering health care in the uk .
national Health service nHs  the agency responsible for delivering healthcare in the uk . the nHs reports to the dH and is 
responsible for both Primary and acute care.  
each of the four countries in the uk has its own nHs organisation and agencies. due to the 
size of the population of england, the english nHs is the largest and has the largest budget.
Primary care trust Pct  nHs england organisations responsible for delivering Primary c are in the community in 
england. the Pct s report to the sHas. Pct responsibilities include doctors, dentists, mental 
health care and care in the home. 
summary care r ecord scr  the four nHs agencies aim to allow appropriate medical staff to see summarised clinical 
data on a patient (eg allergies, past heart attacks). the scr is the english project.
strategic Health authority sHa  in england, 10 sHas are responsible for delivering health care (Primary and acute) within 
their own regions.
Primary care  Health care that is the first port of call such as gPs, dentists and community nurses.
acute care   care usually provided within a hospital environment and often following Primary care 
treatment (for example, an operation or emergenc y care).
general Practitioner gP  doctors who work locally in communities and are the first point of contact for most day-to-
day illnesses.
national Programme for it nPfit  an england-based it programme launched and managed by cfH with the aim of delivering 
new information and technology systems in the nHs . 
local service Provider lsP  the english nPfit programme originally awarded five lsP contracts to four it service 
providers to deliver the programme goals. By 2009, two of the service providers had 
stopped delivery and the lsP contracts were delayed and over budget.
Glossary He ad	Offic e
advanced computer software Plc 
32 Bedford r ow 
Holborn, london 
wc1r 4He  
united kingdom
T: 0207 831 5088 
F: 0207 831 5077 
E: investor-relations@advcomputersoftware.com  
 enquiries@advcomputersoftware.com 
W: www.advcomputersoftware.com