FULMAR
PLC
ANNUAL REPORT & ACCOUNTS Fulmar plc  
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Annual Report & Accounts 2005 3
Contents
Directors and Officers .......................................................................................... 4
Professional Advisers ........................................................................................... 5
Financial Highlights ............................................................................................. 6
Chairman’s Statement ......................................................................................... 9
Chief Executive’s Review ..................................................................................... 13
Directors’ Report ................................................................................................. 17
Corporate Governance ........................................................................................ 23
Statement of Directors’ Responsibilities ............................................................... 27
Directors’ Remuneration Report ........................................................................... 29
Independent Auditors’ Report – Group ................................................................ 33
Independent Auditors’ Report – Company ........................................................... 37
Consolidated Income Statement .......................................................................... 40
Consolidated Statement of Recognised Income and Expense ............................... 42
Consolidated Balance Sheet ................................................................................ 43
Consolidated Cash Flow Statement ..................................................................... 45
Notes to the Consolidated Accounts .................................................................... 46
Company Balance Sheet ...................................................................................... 77
Notes to the Company Accounts .......................................................................... 78
Five Year Review ................................................................................................. 89
Notice of Meeting ............................................................................................... 91 Fulmar plc  
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Annual Report & Accounts 2005 5 4 Fulmar plc  
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Annual Report & Accounts 2005
Directors and Officers
J D Dutton FCA (46)* Non-executive Chairman 
He is the Chief Executive of Oasis Trust, a global charity. Joined
the board in 2001.
M E Taylor (58) Chief Executive
Founded Fulmar in 1971 and has been Chief Executive since then.
D J Harris FCA (60) Finance Director and Company Secretary
Joined the board in 1988. He was previously a partner in a firm of
Chartered Accountants where he specialised in the printing
industry.
M A Austin MBA (54) Marketing Director
Joined the board in 1996 having previously been group marketing
manager for graphic systems at Agfa-Gevaert.
J K McKay FCA (56)† Senior Independent Non-executive Director
Joined the board in 2004 having previously been an audit partner
at Deloitte & Touche LLP.
* Chairman of the audit committee and member of the remuneration and nominations
committee.
† Chairwoman of the remuneration and nominations committee and member of the audit
committee.
Professional Advisers
Registered Office
The Orion Centre, 108 Beddington Lane, Croydon CR0 4YY
(Company number 1031732)
Bankers
National Westminster Bank plc, 
Corporate Banking South East, Turnpike House, 
123 High Street, Crawley RH10 1DQ
Solicitors
Norton Rose, Kempson House, Camomile Street, 
London EC3A 7AN
Independent Auditors
Deloitte & Touche LLP, Chartered Accountants, Global House,
High Street, Crawley RH10 1DL
Registrars
Capita IRG plc, The Registry, 
34 Beckenham Road, Beckenham BR3 4TU
Stockbrokers
Arbuthnot Securities Limited, Arbuthnot House, 
20 Ropemaker Street, London EC2Y 9AR 6 Financial Highlights Fulmar plc  
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Annual Report & Accounts 2005 7
Financial Highlights
Before Before
exceptional Exceptional Total exceptional Exceptional Total    
items items 2005 items items 2004
£000 £000 £000 £000 £000 £000
Revenue ............................................................................................. 40,941 – 40,941 42,732 – 42,732
Operating profit ............................................................................... 4,193 1,438 5,631 4,016 (335) 3,681
Operating margin ............................................................................. 10% – 14% 9% – 9%
Profit before tax ............................................................................... 3,817 1,438 5,255 3,521 (335) 3,186
Tax ...................................................................................................... (1,150) (10) (1,160) (1,096) 100 (996)
Profit for the year ............................................................................. 2,667 1,428 4,095 2,425 (235) 2,190
Earnings per share ............................................................................ 9.9p 5.3p 15.2p 8.8p (0.8)p 8.0p
Dividend per share ........................................................................... 5.2p 5.2p
Capital expenditure .......................................................................... 2,341 1,132
Net assets per share ......................................................................... 103.6p 95.1p Fulmar plc  
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Annual Report & Accounts 2005 9
Chairman’s Statement
I AM PLEASED TO ANNOUNCE an improved profit performance,
against a background throughout 2005 of continuing challenging
trading conditions in the Group’s principal market of commercial
printing.
The figures have been prepared under International Financial
Reporting Standards (“IFRS”) and those for 2004 have been
restated on a comparable basis. The effect of adoption of IFRS on
both the Income Statement and the Balance Sheet is not material.
The figures in this paragraph exclude the exceptional items in
both 2004 and 2005 referred to below. Revenue for the year
reduced by 4% to £40.94m from £42.73m, mainly as a result of
two Group companies withdrawing from unprofitable activities.
Operating profit increased by 4% to £4.19m from £4.02m,
representing an operating margin of 10% (2004: 9%). Profit 
before tax increased by 8% to £3.82m from £3.52m, representing
a pre-tax margin of 9% (2004: 8%). Earnings per share increased
by 12.5% to 9.9p from 8.8p.
The £1.44m exceptional gain in 2005 relates to the sale of the
Group’s freehold property in Old Street, London EC1, previously
occupied by Royle Financial Print, and includes the second stage
payment of £0.9m received from the sale in 2003 of the Group’s
unused property in Lewes, Sussex, on approval of planning
consent for redevelopment. The £0.34m charge in 2004 relates
mainly to the costs of reorganisation and relocation of W E Baxter Fulmar plc  
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Annual Report & Accounts 2005 11 10 Chairman’s Statement
in May 2004 and the related loss on sale of fixed assets, together
with the costs of closure in October 2004 of the specialist greetings
card finishing department within Royle Corporate Print.
After exceptional items, operating profit was up 53% at £5.63m
from £3.68m, pre-tax profit was up 65% at £5.26m from £3.19m,
and earnings per share were up 90% at 15.2p from 8.0p.
Year end equity shareholders’ funds were £27.92m, up from
£25.62m, giving net assets per share of 103.6p, up from 95.1p, an
increase of 9%. Year end net indebtedness reduced to £2.45m
from £9.10m with resultant gearing of 9% (2004: 35%), reflecting
the £2.65m net proceeds from property sales and the continuing
below normal levels of capital expenditure. Net financing costs
payable at £0.38m (2004: £0.50m) were covered 11.2 times
(2004: 8.1 times) by operating profit before exceptional items.
The Group’s book-related businesses continue to perform well,
increasing revenue by 4% to £14.31m (2004: £13.79m), reflecting
sustained demand. The Group’s commercial and financial printing
businesses experienced a reduction in revenue of 8% to £26.63m
(2004: £28.94m), mainly as a result of the reorganisation of 
W E Baxter in mid-2004 and the closure of the greetings cards
business of Royle Corporate Print later in 2004, both having been
unprofitable activities.
The improvement in Group profitability while trading remains
highly competitive, together with our awards success, has been
achieved by the continuing efforts of our staff and I thank them for
their commitment. 
The directors are recommending an unchanged final dividend
per share of 3.4p, which, if approved at the AGM on 10 May 2006,
will be paid on 17 May 2006 to those shareholders on the 
register at the close of business on 21 April 2006. Together with
the unchanged interim dividend per share of 1.8p paid on 
7 November 2005, dividends per share total an unchanged 5.2p,
which is covered 1.9 times (2004: 1.7 times) by earnings per share
before exceptional items.
Jonathan Dutton Chairman
23 March 2006  Fulmar plc  
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Annual Report & Accounts 2005 13
Chief Executive’s Review
THE GROUP’S PRE-TAX MARGIN OF 9%, up from 8% in 2004,
remains at the higher end of results within our industry and
reflects both an 8% increase in pre-tax profit and a reduction in
revenue of 4%.
This result is consistent with Group strategy of targeted
reorganisation of unprofitable elements of our business and
selective investment in areas of profitable growth.
Operational Review
The Group is managed on a unified basis and therefore reports its
results as one operating segment.
Our businesses which operate in the commercial and financial
printing markets account for the majority of Group revenue at
65% (2004: 68%). In the period under review, revenue for these
Group businesses has fallen by 8% to £26.63m (2004: £28.94m)
mainly due to the reorganisation of W E Baxter in May 2004 and
the closure of the Royle Corporate Print specialist greetings cards
operations in October 2004, both having been unprofitable
activities. 
The continuing pressure on prices within the commercial print
market, driven by overcapacity and static demand in 2005, also
contributed to this decline in revenue. This was mitigated to some
extent during the second half of 2005 by an increase in City
activity benefiting Royle Financial Print, our typesetting and
financial document operation. Fulmar plc  
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Annual Report & Accounts 2005 15 14 Chief Executive’s Review
Royle Financial Print was relocated within the City in
December 2005 to smaller leasehold premises, more suited to its
activities, and a new typesetting and pre-press system installed at
a total cost of £0.15m.
The Group has enjoyed many years of continuous awards
success and this year is no exception, with Royle Corporate Print
being awarded bronze in the Sappi European Print Awards and
voted “Report and Accounts – Winner” of the Printing World
Annual Awards. Fulmar Colour was short listed with four entries
in the Printing World “Brochures” category and repeated its
success of 2004 by being “Highly Commended for Brochures” in
the 2005 McNaughton Review.
Revenue from the Group’s activities in the markets of
paperback books, jackets and covers contributed 35% of the
Group total (2004: 32%), increasing by 4% to £14.31m (2004:
£13.79m). Following a slower than anticipated start to the year,
demand increased in the second half.
In January 2005, Bookmarque, the Group’s paperback book
printing business, took delivery of a third Timson web book text
printing machine at an installed cost of £1.6m and this, together
with the introduction of a third permanent shift on its binding
line, increased capacity, such that Bookmarque was able to
successfully tender for new contractual business. 
In October 2005, Bookmarque was appointed as a paperback
book supplier to Penguin for a proportion of its requirements,
with the first orders being received during November 2005.
Following a period of high capital expenditure in all our print
operations in earlier years, these businesses are well equipped,
resulting in a reduced level of capital expenditure for 2005 at £2.3m.
Freehold Property
In December 2005, the Group completed on the sale of its freehold
premises in Old Street, London EC1 for a cash consideration of
£1.8m. These premises had previously been occupied by Royle
Financial Print. 
The Group sold, in 2003, a vacant freehold property in Lewes,
Sussex previously occupied by W E Baxter, for an initial
consideration of £1.6m in cash. An additional consideration of
£0.9m became payable, during the year, on completion of the
planning process and this was received in November 2005. 
The Group is entitled to receive a further payment on the
conclusion of the redevelopment and sale of the apartments, for
which planning consent has now been granted. The final
payment, if any, will be calculated at 35% of the gross sale
proceeds of the new apartments above £10.2m, excluding the
affordable housing element. At present, it is anticipated that any
such payment received would be insignificant.
Outlook
While our commercial printing businesses continue to operate in
a market that is characterised by relatively static demand and
under-utilised capacity resulting in downward price pressure, we
have begun to see signs of some improvement since the year end.
This is further supported by increased demand for financial print.
Our book related businesses are operating in a more buoyant
market environment and we continue to win new business. We
therefore remain cautiously optimistic in the immediate future for
the Group as a whole.
Mike Taylor Chief Executive
23 March 2006 Fulmar plc  
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Annual Report & Accounts 2005 17
Directors’ Report
THE DIRECTORS PRESENT their annual report and the audited
financial statements for the year ended 31 December 2005.
Activities
The principal activity of the Group is that of lithographic printing. 
An outline of the Group’s developments during the year and
future prospects are included in the Chairman’s Statement and
Chief Executive’s Review.
Dividends
An interim dividend of 1.8p per share (2004: 1.8p) was paid on 
7 November 2005. The directors recommend the payment of a
final dividend of 3.4p per share (2004: 3.4p) on 17 May 2006 to
shareholders on the register at close of business on 21 April 2006. 
Total dividends amounted to £1,402,000 (2004: £1,427,000).
Substantial Shareholdings
As at 10 March 2006, the company had been notified of the
following interests in 3% or more of the issued share capital 
of the company (excluding directors):y
Number of shares %
Hermes Investment Management 929,610 3.45 18 Directors’ Report
Directors and their Interests
The directors who held office at the year end and their interests
in the share capital of the company are as follows:
Ordinary shares of 5p each
31 December 2005 1 January 2005
Beneficial Under Beneficial Under
interests option interests option
No. No. No. No.
J D Dutton 7,530 – 7,530 –
M E Taylor 15,625,463 – 15,625,463 –
D J Harris 817,326 14,675 817,326 14,675
M A Austin 16,078 17,923 16,078 17,923
J K McKay ––– –
Details of the directors’ share options are set out in note 4.
There were no changes in the above interests up to the date of
this report. 
None of the directors had a material interest in any contract of
significance with the company or any subsidiary during the year. 
None of the executive directors held any appointments outside
the Group during the year. 
D J Harris retires by rotation and, being eligible, offers himself
for re-election at the annual general meeting.
Employment Policies
The Group is committed to the recruitment and employment of
people on merit, irrespective of race or gender. The Group also
makes every effort to ensure that disabled people receive equal
opportunities and are not discriminated against on the grounds of
their disabilities.
Fulmar plc  
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Annual Report & Accounts 2005 19
Health, Safety and Environmental Policies
Great importance is attached to health, safety and the
environment and the Group has a strong culture of proactive
management, reinforced by regular internal monitoring and
support at executive level. This is supported by the Group’s health
and safety, and environmental policies.
Charitable Donations
The Group made charitable donations of £2,000 during the year
(2004: £2,000).
Suppliers’ Payment
The Group’s payment policy is in accordance with terms that 
are agreed with individual suppliers. Creditor days at 
31 December 2005 amounted to 79 days (2004: 73 days). 
The company only incurs administrative expenses and the
creditor days amounted to 50 days (2004: 56 days).
Going Concern Statement
After making enquiries, the directors have a reasonable
expectation that the Group has adequate resources to continue 
in operational existence for the foreseeable future. For this
reason, the directors continue to adopt the going concern 
basis in preparing the financial statements.
Annual General Meeting
Shareholders will find on pages 91 to 96 the notice of the
forthcoming annual general meeting of the company to be 
held on 10 May 2006. 
In addition to the ordinary business of the meeting, three
resolutions (numbered 6 to 8) are proposed as special business. 20 Directors’ Report
Authority of Directors to Allot Shares
Resolutions 6 and 7 are similar to the authorities given to the
directors at the last annual general meeting of the company.
By law, directors are not permitted to allot new shares (or to
grant rights over shares) unless authorised to do so by
shareholders. In addition, directors require specific authority
from shareholders before allotting new shares (or rights in respect
of shares) for cash without first offering them to existing
shareholders in proportion to their holdings.
Resolution 6 gives the directors the necessary authority for the
period of five years from the date of the passing of such resolution
to allot shares up to an aggregate nominal amount of £449,234
(being equal to approximately one-third of the issued share capital
of the company). 
Resolution 7 empowers the directors, for the period of five
years from the date of the passing of such resolution, to 
allot shares for cash otherwise than to existing shareholders on a
pro-rata basis, up to an aggregate nominal amount of £67,385,
which is the equivalent of 5% of the issued share capital of the
company. It also enables the directors, in the case of an issue by
way of rights, to deal with fractional entitlements and to make
such exclusions or other arrangements as may be appropriate to
resolve legal, regulatory or practical problems which might arise,
particularly with regard to overseas shareholders.
It is intended that these authorities and powers are renewed at
successive annual general meetings.
There is no present intention of issuing any ordinary shares,
except perhaps in connection with the company’s share 
option scheme. As at 23 March 2006 the company holds no equity
securities in treasury.
Purchase of Own Shares
Resolution 8 renews the authority for the company to make
market purchases (within the meaning of section 163 of 
the Companies Act 1985) on the London Stock Exchange up to an
aggregate of 2,695,405 ordinary shares (equivalent to 10% of the
issued share capital of the company) at a minimum price per
ordinary share of 5p and a maximum of 105% of the average of
the middle market quotations of the ordinary shares as derived
Fulmar plc  
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Annual Report & Accounts 2005 21
from the London Stock Exchange Daily Official List for the five
business days immediately preceding the day on which that
ordinary share is contracted to be purchased. This proposal
should not be taken as an indication that the company will
purchase shares at any particular price or indeed at all, and the
directors will only consider making purchases if they believe that
such purchases would result in an increase in earnings per share
and are in the best interests of the shareholders.
The authority will expire at the conclusion of the next annual
general meeting of the company, or, if earlier, the expiry 
of 15 months from the date of the passing of such resolution.
It is intended to renew this authority and power at successive
annual general meetings.
Auditors
A resolution to re-appoint Deloitte & Touche LLP as the company’s
auditors will be proposed at the forthcoming annual general
meeting.
Approved by the board of directors and signed on behalf of the
board.
D J Harris FCA Secretary
23 March 2006 Fulmar plc  
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Annual Report & Accounts 2005 23
Corporate Governance
THE DIRECTORS SUPPORT The Combined Code on Corporate
Governance issued in July 2003 (the ‘Combined Code’). 
The board sets out its report on how the Group has applied the
principles and whether it has complied with the Combined Code
during the year.
Application of the Principles 
Directors
The board is responsible for the Group’s strategic direction, and its
operating and financial performance. The board comprised three
executive and two independent non-executive directors, all of
whom met on eight occasions in 2005, following a formal agenda. 
Directors’ biographies are given on page 4.
The separate roles of Chairman and Chief Executive are clearly
defined. The Chairman conducts board and shareholder meetings
and ensures that all directors are properly briefed. The Chief
Executive is responsible for developing and co-ordinating the
business and implementing Group strategy.
There is an agreed procedure for the directors to take
independent professional advice at the company’s expense, 
to have access to the Company Secretary and receive appropriate
training where necessary, including an induction on appointment.
All directors are required to retire by rotation at least every
three years when they can offer themselves for re-election if
eligible.
All members of the remuneration and nominations committee
met once during 2005. They monitor, review and make
recommendations to the board on all elements of the
remuneration and performance of the directors of the company.
They also consider the award of options under the company share
option plan and make recommendations to the board in respect of 24 Corporate Governance
the appointment of directors of the company. The committee
consists solely of non-executive directors, and its terms of
reference are available from the Company Secretary on request.
The report on remuneration is set out on pages 29 to 32.
Annual performance appraisals of the executive directors are
conducted by the remuneration and nominations committee, 
and feedback given to the individuals throughout the year. The
executive directors similarly appraise the performance of the non-
executive directors. There is ongoing evaluation of the board and
its committees, by the directors, throughout the year.
Relations with Shareholders
The company encourages meaningful dialogue with both its
institutional and private investors. The executive directors
undertake presentations following the announcement of the
interim and final results, and the directors are available 
for comment throughout the year and at the annual general
meeting.
Accountability and Audit 
The responsibilities of the directors and auditors are set out on
pages 27 and 33.
The board has established the necessary procedures to
implement the Combined Code provisions, except as mentioned
below. These have been in place throughout 2005 and up to the
date of approval of the financial statements.
There is an ongoing process for identifying, evaluating and
managing the significant risks faced by the Group and this process
is regularly reviewed.
The board of directors has overall responsibility for the Group’s
systems of internal control and reviewed them for their
effectiveness during the year by examining reports from
individual directors and the external auditors. Any system of 
internal control can only provide reasonable but not absolute
assurance against material misstatement or loss. 
Fulmar plc  
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Annual Report & Accounts 2005 25
The principal components of the systems for planning, executing,
controlling and monitoring the Group’s activities in order to
achieve its objectives and minimise major risks are:
• an organisational structure with defined lines of responsibility
and delegation of authority;
• a comprehensive budgeting and financial reporting system
which enables the board to evaluate the performance of 
the Group on a monthly basis and take action where necessary
on a timely basis;
• continual review and development of the Group’s internal
control, risk management and management information
systems;
• clearly defined guidelines for capital investment.
Steps continue to be taken to further embed internal control
and risk management procedures into the operations of the
business and to deal with areas of improvement which come to
management’s and the board’s attention.
The board has reviewed the need for an internal audit function
but does not consider it necessary at the current time.
All members of the audit committee met twice during 2005.
They assist the board in discharging its duty to ensure that the
financial statements presented by the company to its shareholders
conform with all legal requirements and that the Group’s systems
of internal control and whistle blowing procedures are adequate.
They consider the re-appointment of auditors, their fees, and the
scope and findings of their audit. The committee consists solely of
non-executive directors, and its terms of reference are available
from the Company Secretary on request.
An account of the Group’s position and prospects is given in 
the Chairman’s Statement and Chief Executive’s Review on 
pages 9 to 15. 26 Corporate Governance
Compliance Statement
Throughout the year ended 31 December 2005 the company has
been in compliance with the Code provisions set out 
in Section 1 of the Combined Code except for the following matter:
•   directors’ notice and contract periods are set at more than one
year as explained on page 30.
Fulmar plc  
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Annual Report & Accounts 2005 27
Statement of Directors’ Responsibilities
THE DIRECTORS ARE RESPONSIBLE for preparing the Annual
Report and the financial statements. The directors are required to
prepare financial statements for the Group in accordance with
International Financial Reporting Standards (IFRS). Company law
requires the directors to prepare such financial statements in
accordance with IFRS, the Companies Act 1985 and Article 4 of
the IAS Regulation. They continue to prepare financial statements
for the company in accordance with UK GAAP.
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
IFRS. Directors are also required to:
• properly select and apply accounting policies;
• present information, including accounting policies, in a manner
that provides relevant, reliable, comparable and under-
standable 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. 28 Statement of Director’ Responsibilities
In the case of UK GAAP financial statements, the directors are
required to prepare financial statements for each financial year
which give a true and fair view of the state of affairs of the
company. In preparing these financial statements, the directors
are also required to:
• select suitable accounting policies and apply them consistently;
• make judgements that are reasonable and prudent; and
• state whether applicable accounting standards have been
followed.
The directors are responsible for keeping proper accounting
records which disclose with reasonable accuracy at any 
time the financial position of the company, for safeguarding the
assets, for taking reasonable steps for the prevention and
detection of fraud and other irregularities and for the preparation
of a directors’ report and directors’ remuneration report which
comply with the requirements of the Companies Act 1985.
The directors are responsible for the maintenance and integrity
of the company website. Legislation in the United Kingdom
governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Fulmar plc  
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Annual Report & Accounts 2005 29
Directors’ Remuneration Report
THE DIRECTORS’ REMUNERATION REPORT Regulations 2002
require the auditors to report to the company’s members on the
‘auditable part’ of the directors’ remuneration report and to state
whether in their opinion that part of the report has been properly
prepared in accordance with the Companies Act 1985 (as
amended by the Regulations). All information relating to the
‘auditable part’ of the report is shown in note 4 to the accounts.
In all other respects the report contains unaudited information.
Information about the emoluments and share options of the
directors is given in note 4 to the accounts. Their interests in the
share capital of the company are shown on page 18.
The remuneration policy for executive directors is controlled by
the remuneration and nominations committee of the board,
comprising the independent non-executive directors, J K McKay
and J D Dutton. Their aim is to ensure that the remuneration
packages for executive directors are designed to attract, motivate
and retain high quality individuals. The packages reflect the
executives’ own responsibilities and the performance of the Group
as a whole.
The remuneration policy is as follows:
• competitive salaries are provided by reference to information
on similar positions in the printing and related industries;
• each executive director will receive an annual bonus if the
percentage increase in the Group’s earnings per share in that
year exceeds a threshold of the percentage increase in the retail
price index in that period plus 3%, such bonus to be at a rate
of 1.5% of the executive director’s basic salary for each 1% that
the earnings per share exceeds the threshold; 30 Directors’ Remuneration Report
• where circumstances exist beyond the scope of the policy (such
as negative earnings per share in the prior year), the
remuneration and nominations committee will use its
discretion to determine whether any bonus is payable and, if
so, the amount of such bonus. In forming its view, the
committee will take account of the bonus arrangements set out
in the directors’ contracts;
• the company makes fixed payments into the Group’s main
defined contribution pension scheme having taken account of
the level of basic salary;
• directors may be granted options under the share option plan
and hold options under the sharesave scheme;
• a benefits package is provided including an appropriate
company car, or alternative, and medical expense and
permanent health insurances;
• service contracts are of two years duration and are terminable
by not less than two years notice by either party. Whilst the
committee acknowledges that there is a case for setting one
year notice and contract periods, the committee considers the
current arrangements to be in the best interests of the Group in
maintaining the services of its key directors. Any compensation
payments will be determined having regard to the particular
circumstances of the case.
As set out in note 4 to the accounts, the executive directors
have waived their right to receive a bonus for 2005 under the
annual bonus scheme. The bonus was waived because it resulted
mainly from exceptional items.
The remuneration of the non-executive directors is determined
by the board as a whole in line with fees paid to non-executive
directors of similar companies. They are normally appointed
under fixed term contracts of two years duration and are
terminable by not less than one years notice by either party. 
The board appoints new non-executive directors following
recommendations of suitable candidates from its professional
advisers, and subsequent interviews.
D J Harris, who retires and offers himself for re-election, is
engaged under a service contract which is terminable by not less
than two years notice by either party.
The details of the directors’ contracts are summarised below:
Date of contract
J D Dutton 01.02.05
M E Taylor 13.03.96
D J Harris 13.03.96
M A Austin 13.03.96
J K McKay 30.06.04
The committee also approves the terms, conditions and
allocation of the company share option and sharesave schemes.
Options are granted under the schemes in phases to offer long
term incentives to the Group’s employees (including the
company’s directors who participate with the other employees)
and to allow them to have a stake in its growth.
Fulmar plc  
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Annual Report & Accounts 2005 31 32 Directors’ Remuneration Report
The graph above shows the company’s total shareholder return
performance, assuming dividends are reinvested, for the five years
to 31 December 2005 compared with the return performance
achieved by the FTSE All Share Index of the London Stock Exchange.
Approved by the board of directors and signed on behalf of the
board.
J K McKay FCA
23 March 2006
2003 2001 2002 2004 2005
0
25
50
75
100
150
200
175
125
225
SOURCE: DATASTREAM
FULMAR plc - TOTAL RETURN INDEX
FTSE ALL SHARE - TOTAL RETURN INDEX
Fulmar plc
Five Years of Awards and Commendations
Fulmar Colour
2005 McNaughton’s Review – Highly Commended Brochures
2004/5 The Consort Royal Graphic Design & Print Awards – Silver Award,
Direct Mail
2004 McNaughton’s Review – Highly Commended Brochures
2004 P.A.M.A.D.A. – Highly Commended
2003 P.A.M.A.D.A. – Best Printer & Overall Winner
2003 McNaughton’s Review – Overall Winner
2003 Printing World Awards – Best Brochure & Catalogue
2002 PrintWeek Awards – Fine Art Printer of the Year
2001 Printing World Awards – Best Finishing – Highly Commended
2001 PrintWeek Awards – Brochure of the Year
2001 Printing World Awards – Most Innovative Use of Print
2001 National Business Calendars Awards – Highly Commended
2001 UK Property Marketing & Design – Award of Excellence
2001 UK Property Marketing & Design – Highly Commended
Pegasus
2004/5 The Consort Royal Graphic Design & Print Awards – Gold Award 
for Print, Catalogues & Manuals
Royle Corporate Print
2005 Printing World Award – Winner, Annual Report & Accounts
2005 Sappi European Print Awards – Bronze Award, Annual Reports 
2004/5 The Consort Royal Graphic Design & Print Awards – Silver Award,
Book & Magazine
2004/5 The Consort Royal Graphic Design & Print Awards – Silver Award,
Annual Report & Accounts
2004 Printing World Awards – Report & Accounts Printer of the Year
2003 Printing World Awards – Print of the Year Award
2003 Printing World Awards – Best Print Production using Fine Screening
2002 National Calendar Awards – Best Corporate Calendar
2002 Printing World Awards – Print Production using FM Screening
2001 Printing World Awards – Report & Accounts Award
2000 Printing World Awards – Print of the Year Award
2000 Printing World Awards – Report & Accounts Award Revenue from the Group’s activities in the markets of PAPERBACK
BOOKS, JACKETS AND COVERS contributed 35% of the Group
total (2004: 32%), increasing by 4% to £14.31m (2004: £13.79m). 
In October 2005, BOOKMARQUE was appointed as a paperback
book supplier to Penguin. While our COMMERCIAL PRINTING businesses continue to operate 
in a market that is characterised by relatively static demand and
under-utilised capacity resulting in downward price pressure, we
have begun to see signs of some improvement since the year end.
This is further supported by increased demand for FINANCIAL PRINT. The Group has enjoyed many years of continuous AWARDS SUCCESS
and this year is no exception, with ROYLE CORPORATE PRINT being
awarded bronze in the Sappi European Print Awards and voted
“Report and Accounts – Winner” of the Printing World Annual Awards. 
FULMAR COLOUR was short listed with four entries in the Printing 
World “Brochures” category and repeated its success of 2004 by being
“Highly Commended for Brochures” in the 2005 McNaughton Review. Fulmar plc  
°
Annual Report & Accounts 2005 33
Independent Auditors’ Report – Group
to the Members of Fulmar plc
WE HAVE AUDITED the Group financial statements of Fulmar plc
for the year ended 31 December 2005 which comprise the
consolidated income statement, the consolidated balance sheet,
the consolidated cash flow statement, the consolidated statement
of recognised income and expense and the related notes 1 to 20.
These Group financial statements have been prepared under the
accounting policies set out therein. We have also audited the
information in the directors’ remuneration report that is
described as having been audited.
We have reported separately on the individual company
financial statements of Fulmar plc for the year ended 
31 December 2005.
This report is made solely to the company’s members, as a
body, in accordance with section 235 of the Companies Act 1985.
Our audit work has been undertaken so that we might state to the
company’s members those matters we are required to state to
them in an auditors’ report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the
company’s members as a body, for our audit work, for this report,
or for the opinions we have formed.
Respective Responsibilities of Directors and Auditors 
The directors’ responsibilities for preparing the annual report, 
the directors’ remuneration report and the Group financial
statements in accordance with applicable law and International
Financial Reporting Standards (IFRS) as adopted for use in the 34 Independent Auditors’ Report – Group
European Union are set out in the statement of directors’
responsibilities.
Our responsibility is to audit the Group financial statements
and the part of the directors’ remuneration report described as
having been audited in accordance with relevant United Kingdom
legal and regulatory requirements and International Standards on
Auditing (UK and Ireland). 
We report to you our opinion as to whether the Group financial
statements give a true and fair view in accordance with the
relevant financial reporting framework and whether the Group
financial statements and the part of the directors’ remuneration
report described as having been audited have been properly
prepared in accordance with the Companies Act 1985 and Article
4 of the IAS Regulation. We report to you if, in our opinion, the
directors’ report is not consistent with the Group financial
statements. We also report to you if we have not received all the
information and explanations we require for our audit, or if
information specified by law regarding directors’ transactions
with the company and other members of the Group is not
disclosed.
We also report to you if, in our opinion, the company has not
complied with any of the four directors’ remuneration disclosure
requirements specified for our review by the Listing Rules of the
Financial Services Authority. These comprise the amount of each
element in the remuneration package and information on share
options, details of long term incentive schemes, and money
purchase and defined benefit schemes. We give a statement, to the
extent possible, of details of any non-compliance.
We review whether the corporate governance statement
reflects the company’s compliance with the nine provisions of the
2003 FRC Combined Code specified for our review by the Listing
Rules of the Financial Services Authority, and we report if it does
not. We are not required to consider whether the board’s
Fulmar plc  
°
Annual Report & Accounts 2005 35
statement on internal control covers all risks and controls, or form
an opinion on the effectiveness of the Group’s corporate
governance procedures or its risk and control procedures.
We read the directors’ report and the other information
contained in the annual report for the above year as described in
the contents section including the unaudited part of the directors’
remuneration report and we consider the implications for our
report if we become aware of any apparent misstatements or
material inconsistencies with the Group financial statements. 
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 Group
financial statements and the part of the directors’ remuneration
report described as having been audited. It also includes an
assessment of the significant estimates and judgements made by
the directors in the preparation of the Group financial statements,
and of whether the accounting policies are appropriate to the
company’s circumstances, consistently applied and adequately
disclosed.
We planned and performed our audit so as to obtain all the
information and explanations which we considered necessary in
order to provide us with sufficient evidence to give reasonable
assurance that the Group financial statements and the part of the
directors’ remuneration report described as having been audited
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 Group financial statements and the part of the directors’
remuneration report described as having been audited. 36 Independent Auditors’ Report – Group
Opinion
In our opinion:
• the Group financial statements give a true and fair view, in
accordance with IFRS as adopted for use in the European
Union, of the state of the Group’s affairs as at 31 December
2005 and of its profit for the year then ended; and
• the Group financial statements and the part of the directors’
remuneration report described as having been audited have
been properly prepared in accordance with the Companies Act
1985 and Article 4 of the IAS Regulation.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors
Crawley
23 March 2006
Fulmar plc  
°
Annual Report & Accounts 2005 37
Independent Auditors’ Report – Company
to the Members of Fulmar plc
WE HAVE AUDITED the individual company financial statements
of Fulmar plc for the year ended 31 December 2005 which
comprise the balance sheet and the related notes 21 to 31. These
individual company financial statements have been prepared
under the accounting policies set out therein.
The corporate governance statement and the directors’
remuneration report are included in the Group annual report of
Fulmar plc for the year ended 31 December 2005. We have
reported separately on the Group financial statements of Fulmar
plc for the year ended 31 December 2005 and on the information
in the directors’ remuneration report that is described as having
been audited.
This report is made solely to the company’s members, as a
body, in accordance with section 235 of the Companies Act 1985.
Our audit work has been undertaken so that we might state to the
company’s members those matters we are required to state to
them in an auditors’ report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the
company’s members as a body, for our audit work, for this report,
or for the opinions we have formed.
Respective Responsibilities of Directors and Auditors 
The directors’ responsibilities for preparing the annual report and
the individual company financial statements in accordance with
applicable law and United Kingdom Accounting Standards (United 38 Independent Auditors’ Report – Company
Kingdom Generally Accepted Accounting Practice) are set out in
the statement of directors’ responsibilities.
Our responsibility is to audit the individual company financial
statements in accordance with relevant United Kingdom legal and
regulatory requirements and International Standards on Auditing
(UK and Ireland). 
We report to you our opinion as to whether the individual
company financial statements give a true and fair view in
accordance with the relevant financial reporting framework and
whether the individual company financial statements have been
properly prepared in accordance with the Companies Act 1985.
We report to you if, in our opinion, the directors’ report is not
consistent with the individual company financial statements. We
also report to you if the company has not kept proper accounting
records, if we have not received all the information and
explanations we require for our audit, or if information specified
by law regarding directors’ remuneration and other transactions
is not disclosed.
We read the directors’ report and the other information
contained in the annual report for the above year as described in
the contents section and consider the implications for our report
if we become aware of any apparent misstatements or material
inconsistencies with the individual company financial statements. 
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 individual
company financial statements. It also includes an assessment of
the significant estimates and judgements made by the directors in
the preparation of the individual company financial statements,
and of whether the accounting policies are appropriate to the
company’s circumstances, consistently applied and adequately
disclosed.
Fulmar plc  
°
Annual Report & Accounts 2005 39
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 individual company 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 individual company financial statements.
Opinion
In our opinion:
• the individual company financial statements give a true and fair
view, in accordance with United Kingdom Generally Accepted
Accounting Practice, of the state of the company's affairs as at
31 December 2005; 
• the individual company financial statements have been
properly prepared in accordance with the Companies Act 1985. 
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors
Crawley
23 March 2006 40 Fulmar plc  
°
Annual Report & Accounts 2005 Fulmar plc  
°
Annual Report & Accounts 2005 41
Consolidated Income Statement
for the year ended 31 December 2005
Before Before
exceptional Exceptional Total exceptional Exceptional Total    
items items 2005 items items 2004
Note £000 £000 £000 £000 £000 £000
Continuing Operations
2 Revenue ....................................................................................... 40,941 – 40,941 42,732 – 42,732
Cost of sales ................................................................................. (26,667) – (26,667) (28,008) – (28,008)
Gross profit ................................................................................ 14,274 – 14,274 14,724 – 14,724
Administrative expenses ................................................................ (10,081) 1,438 (8,643) (10,708) (335) (11,043)
3 Operating profit ......................................................................... 4,193 1,438 5,631 4,016 (335) 3,681
Investment income ....................................................................... 167 – 167 124 – 124
5 Finance costs ................................................................................ (543) – (543) (619) – (619)
Profit before tax ........................................................................ 3,817 1,438 5,255 3,521 (335) 3,186
6 Tax ................................................................................................ (1,150) (10) (1,160) (1,096) 100 (996)
Profit for the year ...................................................................... 2,667 1,428 4,095 2,425 (235) 2,190
8 Earnings per share ..................................................................... 9.9p 5.3p 15.2p 8.8p (0.8)p 8.0p Fulmar plc  
°
Annual Report & Accounts 2005 43 42 Fulmar plc  
°
Annual Report & Accounts 2005
Consolidated Statement of 
Recognised Income and Expense
for the year ended 31 December 2005
2005 2004
£000 £000
Actuarial losses on defined benefit 
pension scheme ........................................................... (565) (313)
Tax on items taken directly to equity ............................... 170 94
Net expense recognised directly in equity ................ (395) (219)
Profit for the year ........................................................ 4,095 2,190
Total recognised income and expense
for the period ............................................................ 3,700 1,971
Consolidated Balance Sheet
at 31 December 2005
2005 2004
Note £000 £000
Non-current assets
09 Property, plant and equipment ................................. 30,166 32,151
15 Deferred tax asset .................................................... 237 99
30,403 32,250
Current assets
10 Inventories ............................................................... 1,726 1,793
11 Trade and other receivables ...................................... 9,655 11,773
Cash and cash equivalents ....................................... 5,786 526
17,167 14,092
Total assets ............................................................. 47,570 46,342
Current liabilities
12 Trade and other payables ......................................... 6,287 6,414
13 Bank loans ............................................................... 820 950
14 Obligations under finance leases .............................. 1,190 1,538
Tax liabilities ............................................................. 535 593
8,832 9,495
Net current assets 8,335 4,597
Non-current liabilities
13 Bank loans ............................................................... 4,068 5,076
14 Obligations under finance leases .............................. 2,160 2,058
18 Retirement benefit obligation ................................... 790 330
15 Deferred tax liabilities ............................................... 3,799 3,760
10,817 11,224
Total liabilities ........................................................ 19,649 20,719
Net assets ............................................................... 27,921 25,623 Fulmar plc  
°
Annual Report & Accounts 2005 45 44 Fulmar plc  
°
Annual Report & Accounts 2005
Consolidated Balance Sheet 
at 31 December 2005 continued
2005 2004
Note £000 £000
Equity
16 Share capital ............................................................ 1,348 1,348
17 Share premium account ........................................... 17,921 17,921
17 Capital redemption reserve ....................................... 225 225
17 Retained earnings .................................................... 8,427 6,129
Total equity ............................................................ 27,921 25,623
Consolidated Cash Flow Statement 
for the year ended 31 December 2005
2005 2004
Note £000 £000
19 Net cash from operating activities ....................... 7,651 5,166
Investing activities
Interest received ....................................................... 75 29
Proceeds on disposal of property,
plant and equipment ............................................ 2,662 1,758
Purchases of property, plant and equipment ............. (784) (1,132)
Net cash from investing activities ........................ 1,953 655
Financing activities
Dividends paid .......................................................... (1,402) (1,427)
Repayments of borrowings ....................................... (1,138) (965)
Repayments of obligations under finance leases ....... (1,804) (2,595)
Purchase of own shares ............................................ – (542)
Net cash used in financing activities ................... (4,344) (5,529)
Net increase in cash and cash equivalents .......... 5,260 292
Cash and cash equivalents at 
beginning of year .............................................. 526 234
Cash and cash equivalents at 
end of year ......................................................... 5,786 526 46 Notes to the Consolidated Accounts Fulmar plc  
°
Annual Report & Accounts 2005 47
Notes to the Consolidated Accounts
for the year ended 31 December 2005
1 Accounting Policies
The financial statements are prepared in accordance with
International Financial Reporting Standards (IFRS) for the first
time. The disclosures required by IFRS 1 concerning the transition
from UK GAAP to IFRS are given in note 20. The financial
statements have also been prepared in accordance with IFRS
adopted for use in the European Union and therefore comply with
Article 4 of the EU IAS Regulation.
At the date of authorisation of these financial statements IFRS
6 and 7 and IFRIC 4 to 9, which have not been applied in these
financial statements, were in issue but not yet effective. The
directors anticipate that the adoption of these standards and
interpretations in future years will have no material impact on the
financial statements of the Group.
The particular accounting policies adopted are described below.
Accounting Convention
The financial statements are prepared under the historical cost
convention.
Basis of Consolidation
The Group financial statements consolidate the financial
statements of the company and all its subsidiary undertakings
made up to 31 December each year.
On acquisition, the assets and liabilities and contingent
liabilities of subsidiaries are measured at their fair values at the
date of acquisition. Any excess of fair value of consideration given
for the acquisition over the fair values of the identifiable net assets
acquired is recognised as goodwill. In circumstances where the fair
values of the identifiable net assets exceed the cost of acquisition
the excess is immediately recognised in the income statement.
The results of subsidiaries acquired or disposed of during the
year are included in the consolidated income statement from the
effective date of acquisition or up to the effective date of disposal
as appropriate.
In accordance with IFRS 3 ‘Business Combinations’, goodwill is
no longer amortised but stated at cost less any provision for
impairment in its value.
Goodwill arising on acquisitions before the date of transition to
IFRS has been retained at the previous UK GAAP amounts subject
to being tested for impairment at that date. Goodwill written off to
reserves under UK GAAP prior to 1998 has not been reinstated and
is not included in determining subsequent profit or loss on disposal.
Property, Plant and Equipment
No depreciation is provided on freehold land or assets in the
course of construction. On other assets depreciation is provided
on cost or net book value in order to write off the cost less residual
value over the estimated useful lives of the assets. The rates of
depreciation are as follows:
• Freehold buildings and long 
leasehold land and buildings –  2% per annum
• Short leasehold land and 
buildings –  over the term of the lease
• Plant and machinery –  10 – 25% per annum
• Motor vehicles –  20% per annum
• Fixtures, fittings and 
equipment –  10 – 25% per annum.
Borrowing Costs
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are assets
that necessarily take a substantial period of time to get ready for
their intended use or sale are added to the cost of those assets, 
until such time as the assets are substantially ready for their
intended use or sale.
All other borrowing costs are recognised in profit or loss in the
period in which they are incurred. Fulmar plc  
°
Annual Report & Accounts 2005 49 48 Notes to the Consolidated Accounts
1 Accounting Policies continued
Inventories
Inventories are stated at the lower of cost and net realisable value.
Cost includes materials, direct labour and appropriate production
overheads.
Taxation
The tax currently payable is based on taxable profit for the year.
Taxable profit differs from net profit as reported in the income
statement because it excludes items of income or expense that are
taxable or deductible in other years and it further excludes items
that are never taxable or deductible. The Group’s liability for
current tax is calculated using tax rates that have been enacted or
substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be paid or received on
differences between the carrying amounts of assets and liabilities
and the corresponding tax bases used in tax computations and is
accounted for using the balance sheet liability method. Deferred
tax is provided in full on temporary differences which result in an
obligation at the balance sheet date to pay more tax or a right to
pay less tax, at a future date, at rates expected to apply when they
crystallise based on current tax rates and laws. Deferred tax
assets and liabilities are not discounted.
The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all
or part of the asset to be recovered.
Financial Instruments
Trade Receivables
Trade receivables are measured at initial recognition at fair value.
Appropriate allowances for estimated irrecoverable amounts are
recognised in the income statement when there is objective
evidence that the asset is impaired.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand and demand
deposits, and other short term highly liquid investments that are
readily convertible to a known amount of cash and are subject to an
insignificant risk of changes in value.
Bank Borrowings
Interest bearing bank loans and overdrafts are recorded at the
proceeds received, net of direct issue costs. Finance charges are
accounted for on an accrual basis in the income statement using the
effective interest rate method and are added to the carrying value
of the instrument to the extent that they are not settled in the period
in which they arise.
Trade Payables
Trade payables are measured at initial recognition at fair value.
Leases and Hire Purchase Contracts
Assets obtained under finance leases and hire purchase contracts
are capitalised at their fair value on acquisition and depreciated
over their estimated useful lives. The finance charges are
allocated over the period of the lease in proportion to the capital
element outstanding.
Operating lease rentals are charged to income in equal annual
amounts over the lease term.
Pension Costs
The expense of defined benefit pension schemes is determined
using the projected unit method and charged to the income
statement based on actuarial assumptions at the beginning of the
financial year. Actuarial gains and losses are recognised in full in
the statement of recognised income and expense in the period in
which they occur. Net pension obligations are included in the
balance sheet at the present value of the scheme liabilities, less
the fair value of the scheme assets. Fulmar plc  
°
Annual Report & Accounts 2005 51 50 Notes to the Consolidated Accounts
1 Accounting Policies continued
Pension Costs continued
The expense of the defined contribution pension schemes and
other employee benefits is charged in the income statement as
incurred. 
Share Based Payments
In accordance with the transitional arrangements of IFRS 2 ‘Share
Based Payment’ the Group has not revalued the share options
issued prior to 7 November 2002.
2 Revenue
Revenue is measured at the fair value of the consideration received or
receivable and represents amounts receivable for goods and services
provided in the normal course of business, net of discounts and VAT.
The Group is managed on a unified basis and therefore reports
its results as one operating segment.
3 Operating Profit
2005 2004
£000 £000
Operating profit is after charging:
Depreciation and amortisation
– Owned assets ........................................................... 2,486 2,266
– Leased assets ............................................................ 616 1,096
Rentals under operating leases
– Other operating leases .............................................. 356 353
Auditors’ remuneration ....................................................
– Audit fee .................................................................. 82 72
– Other fees ................................................................. – 17
Exceptional item .............................................................. (1,438) 335
The exceptional item in 2005 relates to the disposal of properties,
and in 2004 is in respect of the cost incurred in the reorganisation
of two subsidiary companies.
An exceptional item is defined as an identified, non-recurring
item.
4 Information Regarding Directors and Employees
2005 2004
£000 £000
Staff costs during the year (including directors):
Wages and salaries .......................................................... 14,206 14,599
Social security costs ......................................................... 1,589 1,627
Pension costs .................................................................. 270 263
16,065 16,489
No. No.
Average number of persons employed 
(including directors):
Production ...................................................................... 299 299
Sales and administration ................................................. 117 120
416 419 Fulmar plc  
°
Annual Report & Accounts 2005 53 52 Notes to the Consolidated Accounts
1 Accounting Policies continued
Pension Costs continued
The expense of the defined contribution pension schemes and
other employee benefits is charged in the income statement as
incurred. 
Share Based Payments
In accordance with the transitional arrangements of IFRS 2 ‘Share
Based Payment’ the Group has not revalued the share options
issued prior to 7 November 2002.
2 Revenue
Revenue is measured at the fair value of the consideration received or
receivable and represents amounts receivable for goods and services
provided in the normal course of business, net of discounts and VAT.
The Group is managed on a unified basis and therefore reports
its results as one operating segment.
3 Operating Profit
2005 2004
£000 £000
Operating profit is after charging:
Depreciation and amortisation
– Owned assets ........................................................... 2,486 2,266
– Leased assets ............................................................ 616 1,096
Rentals under operating leases
– Other operating leases .............................................. 356 353
Auditors’ remuneration ....................................................
– Audit fee .................................................................. 82 72
– Other fees ................................................................. – 17
Exceptional item .............................................................. (1,438) 335
The exceptional item in 2005 relates to the disposal of properties,
and in 2004 is in respect of the cost incurred in the reorganisation
of two subsidiary companies.
An exceptional item is defined as an identified, non-recurring
item.
4 Information Regarding Directors and Employees
2005 2004
£000 £000
Staff costs during the year (including directors):
Wages and salaries .......................................................... 14,206 14,599
Social security costs ......................................................... 1,589 1,627
Pension costs .................................................................. 270 263
16,065 16,489
No. No.
Average number of persons employed 
(including directors):
Production ...................................................................... 299 299
Sales and administration ................................................. 117 120
416 419 Fulmar plc  
°
Annual Report & Accounts 2005 55 54 Notes to the Consolidated Accounts
5 Finance Costs
2005 2004
£000 £000
Bank loans and overdrafts ............................................... 333 373
Finance leases and hire purchase contracts ..................... 210 246
543 619
6 Tax on Profit on Ordinary Activities
2005 2004
£000 £000
UK corporation tax at 30% (2004: 30%) ........................ 1,121 1,079
Deferred tax – origination and reversal of 
timing differences ........................................................ 39 (83)
1,160 996
The tax assessed for the year differs to that resulting from
applying the standard 30% rate of UK corporation tax as
explained below:
2005 2004
£000 £000
Profit before tax .............................................................. 5,255 3,186
Tax at 30% (2004: 30%) ................................................ (1,576) (956)
Effects of:
Expenses not deductible for tax purposes ........................ (83) (87)
Utilisation of brought forward losses ............................... 519 64
Other differences ............................................................ (20) (17)
Tax charge for the year ................................................... (1,160) (996)
Deferred tax has not been provided in respect of gains realised
that have been rolled over into the acquisition cost of replacement
assets. This tax will become payable if the replacement assets are
sold and further rollover relief is not obtained. The estimated
amount of tax that would become payable by the company and the
Group in these circumstances is £167,000 (2004: £167,000).
Group deferred tax assets of £310,000 (2004: £381,000) and
£985,000 (2004: £1,289,000) have not been recognised in respect
of timing differences relating to revenue losses and capital losses
respectively as there is insufficient evidence that the assets will be
recovered due to the uncertainty of the availability of future profits
against which the losses can be recovered.
7 Dividends
2005 2004
£000 £000
Amounts recognised as distributions to 
equity holders in the year:
Final dividend for the year ended 31 December 2004
of 3.4p (2004: 3.4p) per share ..................................... 917 942 
Interim dividend for the year ended 31 December 2005
of 1.8p (2004: 1.8p) per share ..................................... 485 485 
1,402 1,427
Proposed final dividend for the year ended 
31 December 2005 of 3.4p (2004: 3.4p) per share ...... 916 917
The proposed final dividend is subject to approval by
shareholders at the Annual General Meeting and has not been
included as a liability in these financial statements.
8 Earnings per Share
Earnings per share is based on a profit of £4,095,000 (2004:
£2,190,000) and average ordinary shares in issue during the year
of 26,954,047 (2004: 27,499,129). 
The additional earnings per share figures have been presented
because the exceptional items do not relate to the profitability of
the Group on an on-going basis. Earnings per share before
exceptional items of 9.9p (2004: 8.8p) is based on a profit of  Fulmar plc  
°
Annual Report & Accounts 2005 57 56 Notes to the Consolidated Accounts
8 Earnings per Share continued
£2,667,000 (2004: £2,425,000). Earnings per share on exceptional
items of 5.3p (2004: (0.8)p) is based on a profit of £1,428,000
(2004: £(235,000)).
9 Property, Plant and Equipment
Included in the net book value of plant and machinery at 
31 December 2005 are amounts of £5,171,000 (2004:
£8,659,000) relating to assets held under finance leases and hire
purchase contracts.
Included within the cost of freehold land and buildings are
amounts relating to land of £864,000 (2004: £1,292,000) which
are not depreciated.
Included within the cost of long leasehold buildings and plant
and machinery at 31 December 2005 are finance costs of £91,000
(2004: £91,000) and £170,000 (2004: £170,000) respectively.
Long Short Office
Freehold leasehold leasehold equipment
land and land and land and Plant and and
buildings buildings buildings machinery vehicles Total
£000 £000 £000 £000 £000 £000
Cost
At 1 January 2005 ............................................................................... 9,569 5,664 113 36,941 1,680 53,967
Additions ............................................................................................ – – – 2,151 190 2,341
Disposals ............................................................................................ (1,330) – (113) (391) (232) (2,066)
At 31 December 2005 ....................................................................... 8,239 5,664 – 38,701 1,638 54,242
Accumulated depreciation
At 1 January 2005 ............................................................................... 1,604 696 22 18,270 1,224 21,816
Charge for the year ............................................................................. 138 113 91 2,585 175 3,102
Disposals ............................................................................................ (122) – (113) (378) (229) (842)
At 31 December 2005 ........................................................................ 1,620 809 – 20,477 1,170 24,076
Net book value
At 31 December 2005 ........................................................................ 6,619 4,855 – 18,224 468 30,166
At 31 December 2004 ......................................................................... 7,965 4,968 91 18,671 456 32,151 Fulmar plc  
°
Annual Report & Accounts 2005 59 58 Notes to the Consolidated Accounts
10 Inventories
2005 2004
£000 £000
Raw materials and consumables ...................................... 773 744
Work-in-progress ............................................................ 918 1,014
Finished goods and goods for resale ............................... 35 35
1,726 1,793
11 Other Financial Assets
Trade and other Receivables
Trade and other receivables at the balance sheet date include
amounts receivable from the sale of goods of £9,006,000 (2004:
£10,793,000).
The average credit period taken on sales of goods is 75 days.
The directors consider that the carrying amount of trade and
other receivables approximates to their fair value.
Bank Balances and Cash
Bank balances and cash comprise cash held by the Group and
short-term bank deposits with an original maturity of three
months or less. Investment income includes interest received on
bank deposits of £75,000 (2004: £29,000).
Credit Risk
The Group’s principal financial assets are bank balances and
cash, and trade and other receivables.
The Group’s credit risk is primarily attributable to its trade
receivables. The amounts presented in the balance sheet are net
of allowances for doubtful receivables, estimated by the Group’s
management based on prior experience and their assessment of
the current economic environment.
The credit risk on liquid funds is limited because the
counterparties are banks with high credit-ratings assigned by
international credit-rating agencies.
The Group has no significant concentration of credit risk, with
exposure spread over a large number of counterparties and
customers.
Contingent Asset
The Group sold, in 2003, a vacant freehold property in Lewes,
Sussex previously occupied by W E Baxter, for an initial
consideration of £1.6m in cash. An additional consideration of
£0.9m became payable, during the year, on completion of the
planning process and this was received in November 2005. The
Group is entitled to receive a further payment on the conclusion of
the redevelopment and sale of the apartments, for which planning
consent has now been granted. The final payment, if any, will be
calculated at 35% of the gross sale proceeds of the new
apartments above £10.2m, excluding the affordable housing
element. At present, it is anticipated that any such payment
received would be insignificant.
12 Other Financial Liabilities
Trade and other payables principally comprise amounts
outstanding for trade purchases and ongoing costs.
The directors consider that the carrying amount of trade and
other payables approximates to their fair value.
13 Bank Loans
2005 2004
£000 £000
Bank loans ...................................................................... 4,888 6,026
Analysis of repayments:
Within one year or on demand ....................................... 820 950
Between one and two years ............................................ 815 943
Between two and five years ............................................ 2,361 2,475
After five years ................................................................ 892 1,658
4,888 6,026
The Group’s banking facilities are secured by legal charges over
the assets of the Group. The bank loans are repayable by monthly 
or quarterly instalments, and bear interest between 0.85% and
1.5% over the banks’ base rate. Fulmar plc  
°
Annual Report & Accounts 2005 61 60 Notes to the Consolidated Accounts
14 Financial Commitments
2005 2004
£000 £000
Capital commitments:
Contracted for but not provided – 1,350
Present value of Minimum
minimum lease payments lease payments
2005 2004 2005 2004
£000 £000 £000 £000
Obligations under finance 
leases and hire purchase 
contracts:
Within one year ..................... 1,190 1,538 1,360 1,686
Between one and two years ... 970 885 1,041 972
Between two and five years ... 1,190 1,173 1,245 1,249
3,350 3,596 3,646 3,907
Less: future finance charges ........................................ (296) (311)
3,350 3,596
Obligations under finance leases and hire purchase contracts are
secured on the assets to which they relate.
The initial lease term is generally for five years with fixed monthly
payments and interest rates linked to the UK bank base rate.
Operating Lease Commitments
At the balance sheet date, the Group had outstanding
commitments for future minimum lease payments under non-
cancellable operating leases, which fall due as follows:
2005 2004
£000 £000
Within one year .................................................................. 268 344
Within two to five years ...................................................... 594 712
After five years .................................................................... 29 380
891 1,436
These represent rentals for properties and vehicles.
15 Deferred Tax
The asset for deferred tax is as follows:
2005 2004
£000 £000
Retirement benefit obligation .............................................. 237 99
The provision for deferred tax is as follows:
2005 2004
£000 £000
Capital allowances in excess of depreciation ....................... 4,005 3,983
Losses carried forward ......................................................... (206) (223)
3,799 3,760
Movement in deferred tax in the year:
Asset Liability
£000 £000
At 1 January 2005 .............................................................. 99 3,760
Charge to income statement ............................................... – 39
Credit to equity ................................................................... 138 –
At 31 December 2005 237 3,799
16 Called Up Share Capital
2005 2004
£000 £000
Authorised
40,000,000 ordinary shares of 5p each ............................... 2,000 2,000
Called up, allotted and fully paid
26,954,047 ordinary shares of 5p each ............................... 1,348 1,348
The company operates a company share option plan where
options granted may not be exercised unless there has been a
growth in the earnings per share over a three year, or longer,  Fulmar plc  
°
Annual Report & Accounts 2005 63 62 Notes to the Consolidated Accounts
Called up Share Capital Profit
share premium redemption and loss Total Total 
capital account reserve account 2005 2004
£000 £000 £000 £000 £000 £000
At 1 January ........................................................................................ 1,348 17,921 225 6,129 25,623 25,621
Total recognised income and expense .................................................. – – – 3,700 3,700 1,971
Dividends paid ..................................................................................... – – – (1,402) (1,402) (1,427)
Purchase of own shares ....................................................................... – ––– – (542)
At 31 December 2005 ....................................................................... 1,348 17,921 225 8,427 27,921 25,623
16 Called Up Share Capital continued
period from grant which exceeds the sum of the percentage
increase in the Retail Prices Index and 2% over the same period. 
At 31 December 2005 options to subscribe for 75,390 ordinary
shares (2004: 78,640) were held following the grant in 1996. The
options may be exercised between 15 March 1999 and 14 March
2006 at 154p per share. Further options were held at 
31 December 2005 to subscribe for 344,003 ordinary shares
(2004: 353,146), granted in 1999, which may be exercised
between 7 October 2002 and 6 October 2009 at 87.5p per share.
17 Combined Reconciliation of Movements in Shareholders’ Funds and
Statement of Movements in Reserves
The cumulative amount of goodwill resulting from acquisitions
that has been written off to reserves amounts to £4,227,000
(2004: £4,227,000). Fulmar plc  
°
Annual Report & Accounts 2005 65 64 Notes to the Consolidated Accounts
18 Pension Schemes
The Group operates a number of funded pension schemes which
are administered independently of the Group’s finances. 
The schemes covering the largest number of employees are of
the defined contribution type. The total cost charged to income of
£227,000 (2004: £212,000) represents contributions payable to
these schemes.
The Group also operates a defined benefit scheme. The pension
cost of the defined benefit scheme is assessed in accordance with
the advice of qualified actuaries using the attained age method
and the most recent formal valuation was at 1 April 2002.
The disclosures required by International Accounting Standard
19 (IAS19), Retirement Benefits, are set out below; the scheme
assets are valued at market value and the liabilities are estimated
by an actuary using the projected unit method. The financial
assumptions used to calculate the scheme liabilities by the actuary
under IAS19 are:
2005 2004 2003
% %%
Discount rate .................................................. 5.00 5.50 5.50
Inflation rate ................................................... 2.50 2.50 2.50
Salary increases ............................................... 2.50 2.50 2.50
Increase to pensions in payment ..................... 3.00 3.00 3.00
The assets in the scheme and the expected rate of return were:
Long-term Long-term
expected expected
rate of rate of
return Value return Value
2005 2005 2004 2004
% £000 % £000
Equities .................................. 7.50 5,857 8.00 4,677
Bonds ..................................... 4.00 297 5.00 447
Cash ...................................... 4.50 363 4.25 341
Total fair value of plan assets 6,517 5,465
The following balance sheet impact is measured in accordance
with the requirements of IAS19.
2005 2004
£000 £000
Fair value of plan assets ....................................................... 6,517 5,465
Present value of funded obligations ..................................... (7,307) (5,795)
Deficit in the scheme............................................................ (790) (330)
Related deferred tax asset .................................................... 237 99
Net pension liability.............................................................. (553) (231)
Analysis of amount that has been charged to operating profit:
2005 2004
£000 £000
Current service cost ............................................................. 43 51
Total operating charge ..................................................... 43 51 Fulmar plc  
°
Annual Report & Accounts 2005 67 66 Notes to the Consolidated Accounts
18 Pension Schemes continued
Analysis of the amount that has been credited to investment
income:
2005 2004
£000 £000
Expected return on plan assets ........................................ 408 376
Interest on obligation ...................................................... (316) (281)
Net income .................................................................... 92 95
Analysis of amount that has been recognised in the statement of
recognised income and expenses:
2005 2004
£000 £000
Net actuarial losses recognised in year ............................ 565 313
Reconciliation of present value of plan liabilities and assets:
2005 2004
£000 £000
Change in present value of defined benefit 
obligation 
Opening defined benefit obligation ................................. 5,795 5,172
Employees current service cost ........................................ 43 51
Interest on obligation ...................................................... 316 281
Contributions by plan participants ................................... 23 25
Actuarial losses on obligations ........................................ 1,291 470
Benefits paid ................................................................... (161) (204)
Present value of plan liabilities at end of year .................. 7,307 5,795
Change in fair value of plan assets 
Opening fair value of plan assets .................................... 5,465 5,048
Expected return on plan assets ........................................ 408 376
Actuarial gains on plan assets ......................................... 726 157
Contributions by employer .............................................. 56 63
Contributions by plan participants ................................... 23 25
Benefits paid ................................................................... (161) (204)
Fair value of plan assets at end of year ........................... 6,517 5,465
History of experience gains and losses:
2005 2004
£000 £000
Difference between the expected and actual return 
on the scheme assets ................................................... 726 157
Percentage of scheme assets ........................................... 11% 3%
Experience gains and losses on scheme liabilities ............. (648) 37
Percentage of the present value of the scheme 
liabilities ....................................................................... (9%) 1% Fulmar plc  
°
Annual Report & Accounts 2005 69 68 Notes to the Consolidated Accounts
19 Reconciliation of Operating Profit to Net Cash from 
Operating Activities
2005 2004
£000 £000
Operating profit .............................................................. 5,631 3,681
Depreciation of property, plant and equipment ............... 3,102 3,362
(Gain)/loss on disposal of property, plant and equipment (1,438) 32
Non-cash movement on defined benefit pension scheme (13) (12)
Operating cash flows before movements in 
working capital ............................................................ 7,282 7,063
Decrease/(increase) in inventories .................................... 67 (91)
Decrease/(increase) in receivables .................................... 2,118 (1,249)
(Decrease)/increase in payables ........................................ (127) 721
Cash generated from operations ..................................... 9,340 6,444
Tax paid .......................................................................... (1,146) (659)
Interest paid .................................................................... (543) (619)
Net cash from operating activities ................................... 7,651 5,166
20 Reconciliations on the Transition to IFRS
The principle differences between IFRS and UK GAAP in the
consolidated financial statements are described below.
Dividends
Under UK GAAP, proposed dividends were accrued at the balance
sheet date although there was no obligation to pay until formal
approval by shareholders was granted at the annual general
meeting. Under International Accounting Standard (IAS) 10
‘Events after the balance sheet date’, a liability should only be
recognised once there is an obligation to pay. As a result the
dividend will only be recognised once the shareholders approve it,
and the impact is shown in the tables below.
Employee Benefits
Under UK GAAP, FRS 17 ‘Retirement Benefits’ required the
pension deficit to be shown by way of memorandum disclosure in
the notes to the accounts rather than accounted for in the balance
sheet. IAS 19 ‘Employment Benefits’ requires that the operating
and financing costs of defined benefit schemes are included within
income and allows a number of options for the recognition of
actuarial gains and losses. The Group has adopted the approach
of recognising the full pension deficit at the date of transition.
Actuarial gains and losses have been recognised in full in the
consolidated statement of income and expense (‘SORIE’). The
impact is shown below, together with the related corporation and
deferred tax adjustments.
Reconciliations
The balance sheet reconciliations at 1 January 2004 (date of
transition to IFRS) and at 31 December 2004 (date of last UK
GAAP financial statements) and the reconciliation of profit for
2004, as required by IFRS1 are shown below. Fulmar plc  
°
Annual Report & Accounts 2005 71 70 Notes to the Consolidated Accounts
20 Reconciliations on the Transition to IFRS continued
Balance Sheet Reconciliation at 1 January 2004
IAS10
post balance IAS12 IAS19
sheet – income employee
UK GAAP dividends taxes benefits IFRS
£000 £000 £000 £000 £000
Non current assets
Property, plant and equipment ................................................................................................................................ 34,647––– 34,647
Deferred tax asset .................................................................................................................................................... – – 37 – 37
34,647 – 37 – 34,684
Current assets .......................................................................................................................................................
Inventories ............................................................................................................................................................... 1,702––– 1,702
Trade and other receivables ..................................................................................................................................... 12,049––– 12,049
Cash and cash equivalents ....................................................................................................................................... 234––– 234
13,985––– 13,985
Total assets ............................................................................................................................................................ 48,632 – 37 – 48,669
Current liabilities ..................................................................................................................................................
Trade and other payables ........................................................................................................................................ (5,694) – – – (5,694)
Tax liabilities ............................................................................................................................................................ (205) – – – (205)
Obligations under finance leases ............................................................................................................................. (2,489) – – – (2,489)
Bank loans ............................................................................................................................................................... (975) – – – (975)
Dividends ................................................................................................................................................................ (942) 942–––
(10,305) 942 – – (9,363)
Non current liabilities ...........................................................................................................................................
Bank loans ............................................................................................................................................................... (6,016) – – – (6,016)
Deferred tax liabilities .............................................................................................................................................. (3,843) – – – (3,843)
Retirement benefit obligation .................................................................................................................................. – – – (124) (124)
Obligations under finance leases ............................................................................................................................. (3,702) – – – (3,702)
(13,561) – – (124) (13,685)
Total liabilities ....................................................................................................................................................... (23,866) 942 – (124) (23,048)
Net assets .............................................................................................................................................................. 24,766 942 37 (124) 25,621
Equity ....................................................................................................................................................................
Share capital ............................................................................................................................................................ 1,385––– 1,385
Share premium account ........................................................................................................................................... 17,921––– 17,921
Capital redemption reserve ...................................................................................................................................... 188––– 188
Retained earnings .................................................................................................................................................... 5,272 942 37 (124) 6,127
Total equity ........................................................................................................................................................... 24,766 942 37 (124) 25,621 Fulmar plc  
°
Annual Report & Accounts 2005 73 72 Notes to the Consolidated Accounts
20 Reconciliations on the Transition to IFRS continued
Income Statement Reconciliation for the year to 31 December 2004
IAS19 IAS12
employee income
UK GAAP benefits taxes Reclassify IFRS
£000 £000 £000 £000 £000
Continuing operations
Revenue .................................................................................................................................................................. 42,732––– 42,732
Operating profit ................................................................................................................................................... 3,701 12 – (32) 3,681
Loss on disposal of fixed assets ................................................................................................................................ (32) – – 32 –
Investment income .................................................................................................................................................. 29 95 – – 124
Finance costs ........................................................................................................................................................... (619) – – – (619)
Profit before tax ................................................................................................................................................... 3,079 107 – – 3,186
Tax .......................................................................................................................................................................... (964) – (32) – (996)
Profit for the year ................................................................................................................................................. 2,115 107 (32) – 2,190 Fulmar plc  
°
Annual Report & Accounts 2005 75 74 Notes to the Consolidated Accounts
Prior year IAS10
adjustment to post balance IAS19 IAS12
31 December sheet – employee income
UK GAAP 2003 dividends benefits taxes IFRS
£000 £000 £000 £000 £000 £000
Non current assets ............................................................................
Property, plant and equipment ............................................................ 32,151 –––– 32,151
Deferred tax asset ................................................................................ – 37 – – 62 99
32,151 37 – – 62 32,250
Current assets ...................................................................................
Inventories ........................................................................................... 1,793 –––– 1,793
Trade and other receivables ................................................................. 11,773 –––– 11,773
Cash and cash equivalents ................................................................... 526 –––– 526
14,092 –––– 14,092
Total assets ........................................................................................ 46,243 37 – – 62 46,342
Current liabilities ..............................................................................
Trade and other payables .................................................................... (6,414) –––– (6,414)
Tax liabilities ........................................................................................ (593) –––– (593)
Obligations under finance leases ......................................................... (1,538) –––– (1,538)
Bank loans ........................................................................................... (950) –––– (950)
Dividends ............................................................................................ (917) 942 (25) – – –
(10,412) 942 (25) – – (9,495)
Non current liabilities .......................................................................
Bank loans ........................................................................................... (5,076) –––– (5,076)
Deferred tax liabilities .......................................................................... (3,760) –––– (3,760)
Retirement benefit obligation .............................................................. – (124) – (206) – (330)
Obligations under finance leases ......................................................... (2,058) –––– (2,058)
(10,894) (124) – (206) – (11,224)
Total liabilities ................................................................................... (21,306) 818 (25) (206) – (20,719)
Net assets .......................................................................................... 24,937 855 (25) (206) 62 25,623
Equity ................................................................................................
Share capital ........................................................................................ 1,348 –––– 1,348
Share premium account ....................................................................... 17,921 –––– 17,921
Capital redemption reserve .................................................................. 225 –––– 225
Retained earnings ................................................................................ 5,443 855 (25) (206) 62 6,129
Total equity ....................................................................................... 24,937 855 (25) (206) 62 25,623
20 Reconciliations on the Transition to IFRS continued
Balance Sheet Reconciliation at 31 December 2004 Fulmar plc  
°
Annual Report & Accounts 2005 77
Company Balance Sheet
at 31 December 2005
2005 2004
(restated)
Note £000 £000
Fixed assets 
22 Tangible assets ......................................................... 11,456 13,110
23 Investments .............................................................. 8,569 8,569
20,025 21,679
Current assets 
24 Debtors .................................................................... 4,953 6,655
Cash at bank and in hand ........................................ 5,688 3,600
10,641 10,255
25 Creditors: amounts falling due within one year ........ (2,185) (2,195)
Net current assets ................................................. 8,456 8,060
Total assets less current liabilities ........................ 28,481 29,739
26 Creditors: amounts falling due after more than 
one year ............................................................... (3,989) (4,899)
28 Provisions for liabilities and charges .......................... (971) (917)
23,521 23,923
Capital and reserves 
29 Called up share capital ............................................. 1,348 1,348
29 Share premium account ........................................... 17,921 17,921
29 Capital redemption reserve ....................................... 225 225
29 Profit and loss account ............................................. 4,027 4,429
Total equity shareholders’ funds ......................... 23,521 23,923
The financial statements were approved by the board of directors on
23 March 2006.
They were signed on its behalf by:
M E Taylor D J Harris FCA
Director Director 78 Notes to the Company Accounts Fulmar plc  
°
Annual Report & Accounts 2005 79
Notes to the Company Accounts
for the year ended 31 December 2005
21 Significant Accounting Policies
The separate financial statements of the company are presented
as required by the Companies Act 1985, and prepared in
accordance with applicable United Kingdom Accounting
Standards.
Accounting Convention
The financial statements are prepared under the historical cost
convention.
Tangible Fixed Assets
No depreciation is provided on freehold land or assets in the
course of construction. On other assets depreciation is provided
on cost or net book value in order to write off the cost less residual
value over the estimated useful lives of the assets. The rates of
depreciation are as follows:
• Freehold buildings and long 
leasehold land and buildings ......... 2% per annum
• Short leasehold land and 
buildings ........................................ over the term of the lease
• Plant and machinery ..................... 10 – 25% per annum
• Motor vehicles ............................... 20% per annum
• Fixtures, fittings and equipment .... 10 – 25% per annum
The company capitalises directly attributable interest on all
tangible fixed assets in the course of construction. Rates of
capitalisation depend on whether a specific loan has been taken
out (when the actual interest rate and interest paid is used), or
where the construction is financed by general borrowings (when
a weighted average rate is calculated on all non-specific
borrowings).
Investments
Shares in Group companies are stated in the parent company
balance sheet at cost less provision for any impairment in value.
Deferred Taxation
Deferred tax is provided in full on timing differences which result
in an obligation at the balance sheet date to pay more tax, or a
right to pay less tax, at a future date, at rates expected to apply
when they crystallise based on current tax rates and law. Timing
differences arise from the inclusion of items of income and
expenditure in taxation computations in periods different from
those in which they are included in financial statements. Deferred
tax is not provided on timing differences arising from the
revaluation of fixed assets where there is no commitment to sell
the asset. Deferred tax assets are recognised to the extent that it
is regarded as more likely than not that they will be recovered.
Deferred tax assets and liabilities are not discounted.
Leases and Hire Purchase Contracts
Assets obtained under finance leases and hire purchase contracts
are capitalised at their fair value on acquisition and depreciated
over their estimated useful lives. The finance charges are
allocated over the period of the lease in proportion to the capital
element outstanding.
Operating lease rentals are charged to income in equal annual
amounts over the lease term. Fulmar plc  
°
Annual Report & Accounts 2005 81 80 Notes to the Company Accounts
Long Short Office
Freehold leasehold leasehold equipment
land and land and land and Plant and and
buildings buildings buildings machinery vehicles Total
£000 £000 £000 £000 £000 £000
Cost
At 1 January 2005 ............................................................................... 8,511 5,664 113 1,674 293 16,255
Additions ............................................................................................ – – – – 17 17
Disposals ............................................................................................ (1,330) – (113) – (49) (1,492)
At 31 December 2005 ....................................................................... 7,181 5,664 – 1,674 261 14,780
Accumulated depreciation
At 1 January 2005 ............................................................................... 1,571 696 22 638 218 3,145
Charge for the year ............................................................................. 125 113 91 105 28 462
Disposals .................................................................................................................. (122) – (113) – (48) (283)
At 31 December 2005 ....................................................................... 1,574 809 – 743 198 3,324
Net book value
At 31 December 2005 ....................................................................... 5,607 4,855 – 931 63 11,456
At 31 December 2004 ......................................................................... 6,940 4,968 91 1,036 75 13,110
22 Tangible Fixed Assets
Included in the net book value of plant and machinery at 31 December
2005 are amounts of £nil (2004: £1,006,000) relating to assets held
under finance leases and hire purchase contracts.
Included within the cost of freehold land and buildings are
amounts relating to land of £864,000 (2004: £1,292,000) which are
not depreciated.
Included within the cost of long leasehold buildings and plant 
and machinery at 31 December 2005 are finance costs of £91,000
(2004: £91,000) and £16,000 (2004: £16,000) respectively. Fulmar plc  
°
Annual Report & Accounts 2005 83 82 Notes to the Company Accounts
23 Investments in Subsidiaries
Shares in subsidiary undertakings
£000
Cost and net book value
At 1 January 2005 and at 31 December 2005 ..................................... 8,569
Details of the company’s subsidiary undertakings, all of which are
wholly owned, operate and are incorporated in Great Britain, are
as follows:
Name Activity
Fulmar Colour Printing Company Limited ............................... Lithographic printers
Pegasus Colourprint Limited ................................................ Lithographic printers
Quadracolor Limited .......................................................... Lithographic printers
Royle Print Limited* .......................................................... Lithographic printers
The White Quill Press Limited .............................................. Lithographic printers
Bookmarque Limited ......................................................... Paperback book printers
W E Baxter Limited* ......................................................... Lithographic printers 
and manufacturers of 
loose leaf binders
Royle Financial Print Limited ............................................... Financial document printers
Osier Graphics Limited ....................................................... Lithographic platemakers
Masterlith Limited ............................................................. Lithographic platemakers
Quadracolor Graphics Limited ............................................. Lithographic platemakers
White Quill Repro Limited .................................................. Lithographic platemakers
Delta Colour Proofing Limited ............................................. Lithographic proofers
Surrey Proofing Limited ...................................................... Lithographic proofers
Royle Design Associates Limited .......................................... Designers
Orion Laminating Limited ................................................... Print finishers
Orion Print Finishers Limited ............................................... Print finishers
W R Royle Group Limited ................................................... Parent company
*Held by a subsidiary company.
Details of the company’s non-trading subsidiary undertakings
have not been given because they are too numerous and do not
materially affect the accounts.
All subsidiary undertakings have only ordinary share capital
except Pegasus Colourprint Limited which also has 249,200
preferred ordinary shares, W E Baxter Limited which also has
6,690 preference shares and W R Royle Group Limited which also
has 16,600 preference shares.
24 Debtors
2005 2004
£000 £000
Trade debtors................................................................... 26 107
Amounts owed by subsidiary undertakings ...................... 4,400 6,048
Other debtors .................................................................. 412 424
Prepayments and accrued income .................................... 115 76
4,953 6,655
25 Creditors: Amounts Falling Due Within One Year
2005 2004
£000 £000
Bank loans (see note 27) ................................................. 722 816
Trade creditors ................................................................. 396 327
Obligations under finance leases and
hire purchase contracts ................................................ – 36
Amounts owed to subsidiary undertakings....................... 500 551
Other taxation and social security..................................... 354 45
Accruals and deferred income.......................................... 213 420
2,185 2,195 Fulmar plc  
°
Annual Report & Accounts 2005 85 84 Notes to the Company Accounts
26 Creditors: Amounts Falling Due After More Than One Year
2005 2004
£000 £000
Bank loans (see note 27) ................................................. 3,989 4,899
27 Bank Loans
2005 2004
£000 £000
Bank loans ...................................................................... 4,711 5,715
Analysis of repayments:
Within one year or on demand ....................................... 722 816
Between one and two years ............................................ 757 844
Between two and five years ............................................ 2,340 2,397
After five years ................................................................ 892 1,658
4,711 5,715
The parent company has guaranteed certain bank loans,
overdrafts and obligations under finance leases and hire purchase 
contracts of the subsidiaries. The extent of this liability at the
balance sheet date was £3,481,000 (2004: £6,878,000). However,
the directors consider it to be highly improbable that any liability
will crystallise.
28 Provisions for Liabilities and Charges 
Deferred Tax
The provision for deferred tax is as follows:
2005 2004
£000 £000
Capital allowances in excess of depreciation ................... 971 917
Movement in deferred tax in the year:
2005
£000
At 1 January 2005 .......................................................... 917
Charge to profit and loss account ................................... 54
At 31 December 2005 ................................................... 971
Deferred tax assets of £828,000 (2004: £868,000) have not been
recognised in respect of timing differences relating to capital
losses as there is insufficient evidence that the assets will be
recovered due to the uncertainty of the availability of future gains
against which the losses can be recovered. Fulmar plc  
°
Annual Report & Accounts 2005 87 86 Notes to the Company Accounts
Called up Share Capital Profit Total Total
share premium redemption and loss 2005 2004 
capital account reserve account (restated)
£000 £000 £000 £000 £000 £000
At 1 January ........................................................................................ 1,348 17,921 225 4,429 23,923 23,896
Profit attributable to members ............................................................. – – – 1,000 1,000 1,996
Dividends paid ..................................................................................... – – – (1,402) (1,402) (1,427)
Purchase of own shares ....................................................................... – ––– – (542)
At 31 December 2005 ....................................................................... 1,348 17,921 225 4,027 23,521 23,923
As permitted by Section 230 of the Companies Act 1985, the profit
and loss account of the parent company is not presented as part
of these financial statements. The parent company’s profit after
taxation for the year was £1,000,000 (2004: £1,996,000).
Details of the company’s share capital are shown in note 16.
Details of the directors’ share options are shown in note 4.
30 Financial Commitments
Operating Lease Commitments
The company was committed to making the following payments
under other operating leases in the next twelve months.
2005 2004
£000 £000
Leases which expire
Within one year .............................................................. – 3
Between two and five years ............................................ 16 10
16 13
29 Combined Reconciliation of Movements in Shareholders’ Funds and
Statement of Movements in Reserves Fulmar plc  
°
Annual Report & Accounts 2005 89 88 Notes to the Company Accounts
31 Prior Year Adjustment
FRS 21 – ‘Events After the Balance Sheet Date’ came into effect 
for accounting periods commencing on or after 1 January 2005.
FRS 21 (which embodies IAS 10) does not allow entities to provide
for final dividends declared after the balance sheet date. The
company balance sheet and combined recognition of movements
in shareholders’ funds and statement of movement in reserves
have been restated to reflect the new policy. The effects of the
change in policy are as follows: the 2004 closing profit and loss
reserve has been increased by the value of the 2004 final
proposed dividend (£917,000). The balance sheet creditor for the
dividend has also been reduced accordingly. The £917,000 2004
dividend is now included within the 2005 dividends paid balance
of £1,402,000 (with the remainder being the 2005 interim
dividend of £485,000). In addition, the 2004 dividends paid
balance has been restated to include the 2003 final dividend of
£942,000 and the 2004 interim dividend of £485,000, resulting in
a combined payment of £1,427,000.
Details of the proposed final dividend are given in note 7.
Five Year Review
2005 2004 2003 2002 2001
£000 £000 £000 £000 £000
Income Statement
Revenue ............................. 40,941 42,732 39,928 41,584 39,740
Operating profit before 
exceptional items ............ 4,193 4,016 2,888 3,848 3,739
Exceptional items ............... 1,438 (335) 896 (1,066) (2,977)
Net finance costs ................ (376) (495) (668) (836) (859)
Profit/(loss) before tax ........ 5,255 3,186 3,116 1,946 (97)
Balance sheet
Non-current assets ............. 30,403 32,250 34,647 34,857 32,242
Net current assets .............. 8,335 4,597 3,680 5,032 1,995
Non-current liabilities ......... (10,817) (11,224) (13,561) (16,142) (10,334)
Net assets .......................... 27,921 25,623 24,766 23,747 23,903
The 2005 and 2004 amounts are disclosed under IFRS, and the
others under UK GAAP. The differences are described in note 20. Fulmar plc  
°
Annual Report & Accounts 2005 91
Notice of Meeting
NOTICE IS HEREBY GIVEN that the annual general meeting of
Fulmar plc will be held at its registered office, The Orion Centre,
108 Beddington Lane, Croydon, Surrey CR0 4YY on Wednesday
10 May 2006 at 12 noon for the following purposes:
Ordinary Business
1. To receive and adopt the company’s financial statements and
reports of the directors and auditors for the year ended 
31 December 2005.
2. To receive and adopt the directors’ remuneration report for 
the year ended 31 December 2005.
3. To approve the final dividend of 3.4p per share for the year
ended 31 December 2005.
4. To re-elect D J Harris, who retires by rotation, as a director.
5.To re-appoint Deloitte & Touche LLP as auditors of the
company, to act as such until the conclusion of the next annual
general meeting, and to authorise the directors to fix their
remuneration.
Special Business
6. To consider and, if thought fit, pass the following resolution as
an Ordinary Resolution:
THAT:
(a) the directors be and they are hereby generally and
unconditionally authorised in accordance with section 80
of the Companies Act 1985 to exercise all the powers of the 92 Notice of Meeting Fulmar plc  
°
Annual Report & Accounts 2005 93
company to allot relevant securities (within the meaning of
the said section 80) up to an aggregate nominal amount of
£449,234 during the period commencing on the date of the
passing of this resolution and expiring on 9 May 2011, but
so that this authority shall allow the company to make
before the expiry of this authority offers or agreements
which would or might require relevant securities to be
allotted after such expiry and notwithstanding such expiry
the directors may allot relevant securities in pursuance of
such offers or agreements; and
(b) all authorities previously conferred under the said section
80 be and they are hereby revoked, provided that such
revocation shall not have retrospective effect.
7. To consider and, if thought fit, pass the following resolution as
a Special Resolution:
THAT, subject to and conditional upon the passing as an
Ordinary Resolution of resolution number 6 set out in the notice
of this meeting: 
(a) the directors be and they are hereby empowered, pursuant
to section 95 of the Companies Act 1985 (the ‘Act’), to allot
equity securities (within the meaning of section 94 of the
Act) for cash pursuant to the authority given in accordance
with section 80 of the Act by the said resolution number 6
as if section 89(1) of the Act did not apply to any such
allotment, provided that this power shall be limited to the
allotment of equity securities:
(i) in connection with or the subject of an offer or
invitation, open for acceptance for a period fixed by the
directors, to holders of ordinary shares and such other
equity securities of the company as the directors may
determine on the register on a fixed record date in
proportion (as nearly as may be) to their respective
holdings of such securities or in accordance with the
rights attached thereto (including equity securities
which, in connection with such offer or invitation, are
the subject of such exclusions or other arrangements as
the directors may deem necessary or expedient to deal
with fractional entitlements that would otherwise arise
or with legal or practical problems under the laws of, or
the requirements of any recognised regulatory body or
any stock exchange in, any territory or otherwise
howsoever);
(ii) pursuant to the terms of any share scheme for
employees approved by the members in general
meeting; and
(iii) (otherwise than pursuant to sub-paragraphs (i) or (ii) of
this resolution) up to an aggregate nominal amount of
£67,385, 
and shall expire on 9 May 2011 or, if earlier, at the
conclusion of the annual general meeting of the company in
2011, except that the company may before such expiry
make offers or agreements which would or might require
equity securities to be allotted after such expiry and
notwithstanding such expiry the directors may allot equity
securities in pursuance of such offers or agreements; and
(b) all authorities previously conferred under section 95 of the
Act be and they are hereby revoked, provided that such
revocation shall not have retrospective effect. Fulmar plc  
°
Annual Report & Accounts 2005 95 94 Notice of Meeting
8. To consider and, if thought fit, pass the following resolution as
a Special Resolution:
THAT the company be and is hereby generally and
unconditionally authorised pursuant to and in accordance with
Section 166 of the Companies Act 1985, to make market
purchases (within the meaning of section 163(3) of the
Companies Act 1985) of ordinary shares of 5p each in the
capital of the company (‘Ordinary Shares’) on such terms and
in such manner as the directors may from time to time
determine provided that:
(a)the maximum number of Ordinary Shares hereby
authorised to be acquired is 2,695,405;
(b) the minimum price which may be paid for an Ordinary
Share is 5p;
(c) the maximum price which may be paid for an Ordinary
Share is an amount equal to 105% of the average of the
middle market quotations for an Ordinary Share as derived
from the London Stock Exchange Daily Official List for the
five business days immediately preceding the day on which
that Ordinary Share is contracted to be purchased;
(d) the minimum and maximum prices per Ordinary Share
referred to in sub-paragraphs (b) and (c) of this resolution
are in each case exclusive of any expenses payable by the
company;
(e) the authority conferred by this resolution shall expire at the
conclusion of the annual general meeting of the company to
be held in 2007, or, if earlier, the expiry of 15 months from
the date of the passing of such resolution unless such
authority is varied, revoked or renewed prior to such time
by the company in general meeting by Special Resolution;
and
(f) the company may enter into a contract to purchase
Ordinary Shares under the authority conferred by this
resolution prior to the expiry of such authority which will or
may be completed wholly or partly after the expiry of such
authority and may make a purchase of Ordinary Shares in
pursuance of any such contract.
By order of the board
D J Harris Registered Office
Secretary The Orion Centre
108 Beddington Lane
4 April 2006 Croydon CR0 4YY
Notes
Pursuant to regulation 41(1) of the Uncertificated Securities
Regulations 2001 (2001 No. 3755), the company has specified that
only those members registered on the register of members of the
company at 12 noon on 8 May 2006 shall be entitled to attend and
vote or to be represented at the meeting in respect of the shares
registered in their name at that time. Changes to entries on the
register of members after 12 noon on 8 May 2006 shall be
disregarded in determining the rights of any person to attend and
vote at the meeting.
A member entitled to attend and vote at the meeting may
appoint one or more proxies to attend and (on a poll) to vote
instead of him. A proxy need not be a member of the company.
The appointment of a proxy will not preclude a member from
attending and voting in person. 96 Notice of Meeting
To be valid, an instrument appointing a proxy in respect of the
meeting and the power of attorney or other authority (if any)
under which it is signed, or a copy of such authority certified
notarially, must be deposited with the company’s registrars,
Capita IRG plc, The Registry, 34 Beckenham Road, Beckenham
BR3 4TU, not less than 48 hours before the time appointed for
holding the meeting.
The register of directors’ holdings, copies of the directors’
service agreements and the company’s memorandum and articles
of association are available for inspection at the registered office
of the company during normal business hours on any weekday
and will be available at the place of the meeting from 15 minutes
prior to the commencement of the meeting until the conclusion
thereof.
The final dividend in respect of the year ended 31 December
2005 will, if approved, be paid on 17 May 2006 to holders of
ordinary shares on the register at the close of business on 
21 April 2006.
Form of Proxy
I/We (BLOCK CAPITALS PLEASE)
of
being a member of Fulmar plc, hereby appoint the Chairman of the Meeting or (BLOCK CAPITALS PLEASE)
as my/our proxy to vote for me/us and on my/our behalf at the Annual General Meeting of the company to
be held on 10 May 2006, and at every adjournment thereof. I/We direct my/our proxy to vote on the
resolutions set out in the notice convening the meeting as indicated below.
Dated: 2006 Signature:
Please indicate with an ‘X’ in the appropriate box how you wish your proxy to vote.
Unless otherwise instructed, the proxy will vote or abstain from voting at his discretion.
VOTE
RESOLUTIONS FOR AGAINST WITHHELD DISCRETIONARY
1. To receive and adopt the financial statements and 
reports of the directors and auditors for the year 
ended 31 December 2005 ........................................
2. To receive and adopt the directors’ remuneration 
report for the year ended 31 December 2005 ...........
3. To approve the final dividend of 3.4p per share 
for the year ended 31 December 2005 .....................
4. To re-elect D J Harris as a director ............................
5. To re-appoint Deloitte & Touche LLP as auditors 
until the next annual general meeting and to 
authorise the directors to fix their remuneration .......
6. The resolution (item 6 in the notice) relating to 
the allotment of securities ........................................
7. The resolution (item 7 in the notice) relating to 
the disapplication of pre-emption rights ...................
8. The resolution (item 8 in the notice) relating to 
the purchase by the company of its own shares .......
Please refer to Notes to Form of Proxy, overleaf.
✃ Notes to Form of Proxy
1. You may, if you wish, delete the words ‘the Chairman of the Meeting or’ and substitute the name of
your proxy of choice. Please initial such an alteration.
A proxy need not be a member of the company.
2. To be effective, this form of proxy and the power of attorney or other authority (if any) under which it is
signed, or a copy of such authority certified notarially, must be deposited with the company’s registrars,
Capita IRG plc, The Registry, 34 Beckenham Road, Beckenham BR3 4TU not less than 48 hours before the
time appointed for holding the meeting.
3. In the case of corporations this form of proxy must be completed under its common seal or under the
hand of some officer or attorney or other person duly authorised.
4. In the case of joint holders, the signature of any one joint holder is sufficient. The vote of the senior who
tenders a vote, whether in person or by proxy, shall be accepted to the exclusion of the votes of the other
joint holders, and for this purpose seniority shall be determined by the order in which the names stand in
the register of members in respect of the share.
5. Completion and return of this form of proxy will not preclude a member from attending and voting 
in person.
6. On any motion to amend any resolution, to propose a new resolution or to adjourn the meeting, or on
any other motion or resolution put to the meeting, the proxy will vote or abstain from voting at his/her
discretion.
7. The ‘VOTE WITHHELD’ option is provided to enable you to instruct your proxy to abstain from voting on
a particular resolution. A ‘VOTE WITHHELD’ is not a vote in law and will not be counted in the calculation
of the proportion of the votes ‘FOR’ and ‘AGAINST’ a resolution. The ‘DISCRETIONARY’ option is provided
to enable you to give discretion to your proxy to vote or abstain from voting on a particular resolution as
he/she thinks fit.
BUSINESS REPLY SERVICE
Licence No. MB122
Capita Registrars (Proxies)
PO Box 25
Beckenham
Kent 
BR3 4BR  Fulmar plc
The Orion Centre
108 Beddington Lane
Croydon
Surrey CR0 4YY
www.fulmar.com
Fulmar plc
Annual Report & Accounts 2005
FULMAR, the South London-based commercial and book printer, announces a further increase
in pre-tax profit and earnings per share, despite continuing challenging trading conditions
throughout 2005 in the Group’s principal market of commercial printing.
This improved result is consistent with Group strategy of TARGETED REORGANISATION of
unprofitable elements of our business and selective investment in areas of profitable growth.
The Group has enjoyed many years of continuous AWARDS SUCCESS and this year is no
exception, with ROYLE CORPORATE PRINT being awarded bronze in the Sappi European Print
Awards and voted “Report and Accounts – Winner” of the Printing World Annual Awards.
FULMAR COLOUR was short listed with four entries in the Printing World “Brochures” category
and repeated its success of 2004 by being “Highly Commended for Brochures” in the 2005
McNaughton Review.