21417.04       10/05/12        Proof 6
Annual Report and Accounts for 
the year ended 31 December 2011
Registered Number: 1962726
Focused on display technologies 21417.04       10/05/12        Proof 6
Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
For 40 years, Densitron T echnologies plc a world leader in the 
provision of display solutions to a global industrial marketplace. 
Our products include LCD Displays, OLEDs, TFT s, touch 
screens and e-paper.
Visit us online . . .
This report and more information on products  
and services are available on our website at:
www.densitron.com
Welcome to
Densitron T echnologies plc
Our Strategy: Revenue and proﬁt growth through organic development of the  
core business, expansion of geographical reach and development of branded 
products and services.
— Quality engineering; and 
— Integrated customer solutions
Our corporate vision remains true to the core beliefs established 
in the 1970s – innovative product design through: www.densitron.com Stock Code: DSN
Our Business Our Governance Our Financials
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Our Financials
Our Business
01 Highlights
02 Group at a Glance
06 Chairman’s Statement
08 Chief Executive Officer’s Review
Our Governance
11 Directors and Advisers
12 Report of the Directors
18 Independent Auditor’s Report
19 Consolidated Income Statement
20 Consolidated Statement of 
Comprehensive Income
21 Consolidated Balance Sheet
22 Consolidated Cash Flow Statement
23 Statement of Changes in 
Shareholders’ Equity
24 Notes to the Financial Statements
Contents Financial Highlights
Revenue (£m)
up 11% to
£23.1m
Prot before tax
up 75% to
£1.1m
 ❙ Revenue increased by 11% to £23.1 million (2010: £20.8 million).
 ❙ Profit from continuing operations (excluding loss on disposal of 
available-for-sale asset) increased to £1.1 million (2010: £0.7 million).
 ❙ 2011 profit from operations reduced by £0.1 million due to exceptional 
legal costs. Excluding these costs the profit from operations would be 
£1.2 million (2010: £0.7 million).
 ❙ Capital reduction and special dividend totalling 5p per share paid to 
Shareholders.
 ❙ Dividends for the year totaling 0.6p per share (2010: 0.3p per share)  
an increase of 100%.
 ❙ Earnings per share (excluding disposal of available-for-sale asset) 
increased to 1.18p (2010: 0.72p).
 ❙ Increase in gross margin from 28.1% to 29.6% reflecting an increase  
in the Group’s range of quality products.
 ❙ Growth of the new branch office in Italy.
 ❙ Introduction of internally developed products providing intellectual 
property for the Group.
 ❙ Promotion of new products and growth in the range of existing products.
2011 2010
£millions £millions
Revenue 23.1 20.8
Profit from operations 1.1 0.7
Basic earnings per share 1.18p 0.72p
Orders booked 21.2 21.8
Order book 8.9 10.1
* Excludes loss on available-for-sale asset
09 08 07 10 11
£25
£20
£15
£10
£5
0
09 08 07 10 11
1,200
1,000
800
600
400
200
0
(200)
(400)
Adjusted for exceptional gains and losses on asset disposals
14.0
18.3
15.1
20.8
-0.2
0.5
0.2
0.6
23.1
1.1
£m
£’000
Year Year Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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Group at a Glance
Densitron Technologies plc is a UK based AIM Quoted 
Company with subsidiaries located in the UK, US, Japan, 
France, Finland, Germany and Taiwan. It comprises a 
business trading in industrial electronic displays and 
investment.
Displays Business
Densitron Displays is a world leader in the 
provision of technical solutions to its customers 
specific display engineering requirements.
The core business of the Group for 40 years 
has been electronic displays. Initially the source 
of these displays was Japan but over a period 
of time the primary manufacturing base for 
this type of product has moved to Taiwan and 
mainland China.
Densitron targets small to medium sized 
Original Equipment Manufacturers (OEMs) 
who will often not have in-house expertise 
in electronic displays or are not in a position 
to directly access manufacturers in the Far 
East direct. With a highly technical workforce 
Densitron is able to offer the expertise that 
may be lacking and has built up a network of 
suppliers in the Far East that are managed by 
the Group’s own logistics subsidiary based in 
Taiwan.
Investment
The Group owns a piece of land in Blackheath, 
South East London, totalling approximately 
1.25 acres that it is currently seeking planning 
consent for future development.
Who we are
Densitron is a world leading provider of display technology solutions to the 
industrial marketplace. The Group’s unique selling points are its: 
 — Geographical spread
 — Experienced work force
 — Longstanding supplier relationships
 —Technical excellence
 — Professional sales and marketing network
Operating from subsidiaries and branch offices and a network of 
distributors the Group is able to service customers throughout the world.
Why Densitron? www.densitron.com Stock Code: DSN
Our Business Our Governance Our Financials
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OLEDs
Organic Light-Emitting Diode (OLED) 
displays combine the benefits of organic 
light-emitting technology, giving a brighter 
and clearer, richer image than those of a 
TN LCD technology (as used on TFTs).
TFTs
This product portfolio provides customers 
with high quality panels suitable for a wide 
variety of industrial applications.
Touchscreens
Touch Screen Displays from Densitron 
transform a display into an interactive 
interface. By matching our standard TFT 
and Monochrome Graphic displays with 
the technology of touch screens we have 
developed a range of innovative integrated 
touch screen displays. 
E Paper
E-Paper Displays were developed 
for creating electronic books and 
newspapers. They can retain contents 
for years without using any power but 
can be updated quickly and easily. They 
are designed to be sunlight readable and 
with a very wide viewing angle. However, 
these characteristics provide a base for 
other applications where power availability 
is limited and periodical or random 
update is required.
Engineering design
Since the 1970s, as one of the largest 
designers and manufacturers of display 
technology, Densitron Displays has 
established the best local design facilities 
wherever its customers are located 
in the world. Utilising state of the art 
production facilities, situated globally to 
take advantage of the most appropriate 
type of manufacture, the Group is able 
to deliver solutions to its customers that 
trouble even the largest blue chip OEMs.
Our Products
Read more about our Products at www.densitron.com
Monochrome
LCD Module and LCD Glass are the 
traditional forms of display technology 
that still perform a critical role in a world 
where consumer demand for information 
display is growing rapidly. Densitron 
LCD Modules ensure that the display 
solution brings the product capabilities 
to life. Densitron actively works with 
our customers to deliver exciting and 
affordable LCD Module and LCD Display 
product display solutions. With extensive 
experience in design and manufacture 
of Standard and Custom LCD, FSTN, 
STN, TN, EL display modules the Group’s 
proactive approach to 
module development 
can provide a partial 
or even a complete 
assembly where 
appropriate. 
There are three main areas where the displays business operates:
Standard products — as this suggests 
this is a range of off the shelf displays 
provided by manufacturers. This type of 
business tends to be relatively low margin 
and requires high volume to make it 
viable.
Custom business — this is where a 
standard display is taken and customised in 
order to meet a customers’ requirements or 
value added by incorporating other features. 
This is the largest part of the business 
and due to the required engineering input 
attracts the highest margins. 
Total solutions — this is where the 
business takes a complete product from 
a customer and manufactures it in its 
entirety. At this level the margins attracted 
start to fall again due to the low cost of 
the associated plastic housing. Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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Group at a Glance continued
Densitron’s global reach extends beyond the 
locations in which it has subsidiaries and branch 
offices. In addition to those offices servicing 
other locations the Group operates through an 
extensive network of distributors.
Our global operations
 — Subsidiaries located in 7 countries
 — 2 Branch offices
 — Distributors in 15 countries
 — Sales in more than 35 countries worldwide
Densitron opens new office in India
Leads will come in the form of visitors to the Group’s 
website downloading information, requests for information 
through the Group’s local distributor and direct approaches 
to the Group, a distributor will generally focus on selling 
products that are readily saleable and be less interested 
in working with a potential customer on a project type 
piece of business referring the interested party directly 
to the Group. In the last 18 months the number of leads 
received from India has dramatically increased but being 
able to qualify them (assess the validity of the lead and the 
Company behind the lead) remotely is almost impossible. 
Having already adopted a “soft” entry into the Italian 
market in the previous year that had been successful, 
the decision was taken that a similar approach should be 
adopted with India. A “soft” entry is carried out by locating 
an experienced displays professional in the market that 
is to be addressed in order to assess the potential in that 
market. It is clear that India is a large market for displays 
and this will grow dramatically over the coming years but 
the question is how much of the market is Densitron able 
to address. Clearly Densitron is not able to compete with 
large volume standard product business that is supplied 
by major Chinese and Taiwanese manufacturers, but as 
with the other markets in which it operates, there is the 
potential for substantial business with small and medium 
sized OEMs (Original Equipment Manufacturers). The 
purpose of the “soft” entry in a country like India is to 
assess the market for size and which type of products 
should be promoted, decide on where the business should 
be permanently located and qualify the existing leads with 
a view to generating revenues at any early stage in order to 
make the entry self-funding. 
The Indian office was opened in January 2012 following 
the relocation of one of the experienced engineers based 
in the London office. He is currently researching the market 
while following up on the leads that had previously been 
received. He has assessed a number of those leads and 
has been able to turn several of them into genuine exciting 
opportunities. What is clear even from the short time that 
he has been there is that the Indian market, although 
fraught with difficulties not least the sheer scale of the 
country, has tremendous potential. It is believed that the 
revenues from the Indian market could grow very quickly 
and if this is the case the intention would be to grow a local 
sales force in the key parts of India and eventually to set up 
a full scale local subsidiary office.
Over a number of years the Group has had a distribution presence in India.  
This presence has provided a reasonable return in terms of revenue but also  
a substantial quantity of unqualified leads. Asia
12.98%
2010: 13.23%
Europe
53.25%
2010: 53.92%
USA
33.77%
2010: 32.85%
www.densitron.com Stock Code: DSN
Our Business Our Governance Our Financials
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Europe
USA
Far East
%  Revenue split 2011
The Group has maximised its geographical coverage by operating through a combination 
of its own subsidiaries, branch offices and distributors. The use of distributors has enabled 
the Group to develop a presence in a number of locations where market penetration would 
otherwise have been extremely difficult. Having established a distribution presence it enables 
the Group to assess the market and identify those locations that would benefit from a more 
direct presence — two locations that have benefited from this approach are Italy and India.
The Group will continue to grow geographically where it identifies locations where there is an 
established and growing market for the types of product it sells and the types of customer it 
typically sells to — in 2012 the US office is establishing a presence in Brazil.
Geographical coverage
Subsidiaries
Branch ofﬁces
Distributors Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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Chairman’s Statement
Despite the year being shrouded by continual negative 
economic news the Group has managed to grow its 
business further.
Introduction
I am pleased to report on the results for the year ended  
31 December 2011 which show a continuation of the positive 
progress made by the Group over the last few years. Despite 
the year being shrouded by continual negative economic news 
the Group has managed to grow its business further and 
increase the return generated by its business units.
Densitron Displays
The challenge for the Displays business in the year was to 
continue the progress that had been made during the previous 
year when a solid foundation had been laid. The business largely 
rose to the challenge by increasing both revenues and operating 
profit significantly during the year. 
Inevitably there were obstacles that needed to be negotiated 
and difficulties that needed to be managed during the year, 
none more so than the Tsunami that hit Japan in March 2011. 
I am pleased to be able to report that our office in Japan along 
with our customers and suppliers were largely unaffected by 
the Tsunami apart from a shortage of power. It did, however, 
create a temporary delay in the delivery of certain component 
parts that are supplied by Japanese manufacturers to 
display manufacturers in China and Taiwan which resulted 
in manufacturing lead times being extended. That has now 
returned to normal.
The challenge for the coming year will be to ensure that those 
parts of the business that performed well during 2011 and met 
or exceeded our expectations continue to progress during 2012. 
Those parts of the business that did not perform to expectations 
during 2011 have identified and addressed the issues that 
caused them not to meet expectations and remedial measures 
have been adopted.
A more detailed review of the results of the Displays business  
is carried out in the Chief Executive Officer’s Report on pages  
8 to 10.
Land at Blackheath
Blackheath is the 1.25 acre piece of land that the Group owns in 
Blackheath, South East London.
I reported in my statement last year that our planning application 
for the land had been rejected by the Local Council. Following 
the rejection we reviewed the options we had with the land 
and consulted leading Counsel. We consequently took the 
decision not to appeal against the ruling of the local Council 
and to pursue alternative options. We are now working on 
the reclassification of the site through the Local Development 
Framework and exploring existing use rights on the site. We will 
keep shareholders informed when there is further information.
In 2010 we engaged a firm of surveyors to carry out a 
professional valuation of the land and they confirmed a valuation 
of £500,000 which was recognised in the 2010 accounts. We 
have not undertaken a formal revaluation of the land in 2011 but 
the Board considers the value to be at least at this level. 
Shareholders
The Directors remain committed to delivering a return to the 
Company’s Shareholders by way of both capital growth and 
distribution.
Capital Growth – In order to grow the value of the Company 
it is vital that investors are informed about the Company’s 
businesses. To that end, the Company’s Nomad has provided 
research on the Group during the year and the Executive 
Directors have held numerous meetings with current and 
potential investors explaining the results of the Group and its 
future strategy. The share price at the beginning of 2011 was 
14.75p and during the year the Company returned cash to its 
Shareholders by way of capital reduction and dividends totalling 
5.4p per share. At the close of the year the share price was 
11.00p. Taking into account the return of cash and dividends, 
the overall return from a holding in the shares during the year 
has been 1.65p per share or 11.19%. 
Capital reduction – During the year the Company returned 4p 
per share to its Shareholders by way of a capital reduction and a 
further 1p per share by way of dividend. This followed the sale of 
the Group’s investment in Evervision Electronics Co. Ltd during 
2010. The Board considered that this was the most appropriate 
use of the disposal proceeds as they were not required within 
the business to fund the Group’s primary strategy of organic 
growth. www.densitron.com Stock Code: DSN
Our Business Our Governance Our Financials
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Dividends – The Board is committed to providing Shareholders 
with dividends but will do so whilst being mindful of the 
requirements within the Group for funds to continue to grow. 
An interim dividend of 0.2p per share was paid to Shareholders 
in September. I am pleased to propose a final dividend for the 
year of 0.4p per share (2010: 0.2p per share) resulting in a total 
dividend payment for the year of 0.6p per share (2010: 0.3p per 
share) representing a return of in excess of 50% of profit for the 
year and an increase of 100% over 2010.
Claim against the Company
Shareholders were advised in February 2012 that the Group had 
received a writ in respect of unpaid rents on a property occupied 
by a former group company, Densitron Ferrograph Limited, 
whose shares were disposed of in 2006. The Board confirmed 
in the announcement that it intends to defend the Group’s 
position vigorously in this matter. Further details on the claim  
are discussed in the Directors’ Report on pages 12 to 17.
Outlook and strategy
The Board of directors review the medium and long term 
strategy of the business on a regular basis and has concluded 
that the main driver of the business will remain organic growth. 
However, in the near term, opportunities to grow the business 
will diminish unless action is taken to develop it further. To this 
end, the following four specific business objectives have  
been identified and have been incorporated into the current  
business plan:
 ❙ Increase in market share from the existing business;
 ❙ Geographical expansion of the business;
 ❙ Introduction of new products to the current product 
offerings; and
 ❙ Creation of more value by development of the Group’s own 
products and intellectual property.
The first three objectives reflect how the Group has been 
growing the business over the last few years. They are still valid 
strategies and will continue to be followed. The main change in 
the strategy is the intention to develop more intellectual property 
within the Group which will enable the Group to differentiate 
itself from a number of its competitors throughout the world by 
having its own unique range of products. It will also result in the 
Group being able to derive better returns on its revenues and 
will enable it to retain customers as the products that they are 
buying increasingly become unique to Densitron. The Group 
currently has several exciting development projects in the 
pipeline and the product offerings that are being developed will 
be available later this year. 
I am pleased to be able to report that the level of orders booked 
in the first quarter of 2012 has been in excess of 28% higher 
than for the same period in 2011. This clearly demonstrates  
the continuing strength of demand for the types of products  
that the Group sells.
I would like to thank the Directors and staff throughout the 
Group for their continued dedication during the year. They 
have ensured that the progress made during 2010 has 
been continued in 2011 and have assisted in significantly 
strengthening the business with new products and also an 
expanded market penetration.
Finally, I would like to thank the Company’s Shareholders for 
your continuing support.
Jan G Holmstrom
Chairman
10th May 2012
20
15
10
5
0  31.12.10 31.03.11 30.06.11 30.09.11 31.12.11
Share price Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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I am delighted to be reporting on a year in which the Displays 
business has achieved so much. The business has been 
transformed over the last 5 years and is placed very strongly in 
the markets in which it operates. It has also given the business 
the opportunity to explore new geographical locations, promote 
different types of displays and invest in the development of 
intellectual property. All these components combined with the 
core business mean that the Group can move forward again 
from the position that it has already achieved. 
Performance for the year
The results of the underlying business for the year reflect the 
progress that has been made in all areas of the business. 
Revenues increased by 11% from £20.8 million in 2010 to £23.1 
million in 2011 and gross profit by 19% from £5.8 million in 2010 
to £6.9 million in 2011. This reflects the work that has been 
done strengthening the product portfolio available to the Group 
and the quality of the business being conducted. The gross 
margin percentage increased from 28.1% in 2010 to 29.6% 
in 2011, which reflected the mix of business being conducted 
during the year.
Orders booked during the year fell by 3% from £21.8 million 
in 2010 to £21.2 million in 2011. During 2010 last time buy 
orders were received for products that had become end of life 
and were being discontinued by suppliers and these orders 
amounted to approximately £0.5 million. Excluding these orders, 
the orders booked in 2011 were in line with the previous year. It 
was disappointing that we did not grow the orderbook during 
the year but certain orders that were forecast to be received 
during December were delayed until the beginning of 2012. 
Orders booked in the first quarter of 2012 are in excess of 28% 
higher than in the same period during 2011 which gives a good 
indication that the business is on track to continue to grow 
during 2012.
Regional review
European business — the European region is made up of 
four subsidiaries, two local offices and a number of distributors 
located throughout Europe and in other key locations.
Densitron Europe Ltd is the Group’s UK subsidiary responsible 
for sales in the UK, management of offices in Italy and India, 
management of the Group’s distribution network, providing 
support to other European subsidiaries and direct sales to other 
regions where the Group does not have a physical presence.
During 2011 the revenues increased by 15% from £5.3 million 
in 2010 to £6.1 million in 2011 while gross profit increased by 
19% from £1.6 million in 2010 to £1.9 million in 2011. Order 
intake increased by 6% from £5.1 million in 2010 to £5.4 million 
in 2011. Keeping control of administrative and finance expenses 
resulted in an increase in profit before tax from £117,000 in 
2010 to £338,000 in 2011.
We have previously reported that we have opened an office in 
Italy and during 2011 this decision began to be justified with 
several projects beginning production. India has been a location 
that we have been addressing through distributors for a number 
of years but with the number of enquiries that we receive on a 
monthly basis and the ongoing economic growth in India we 
considered that it would be more appropriately served through 
our own people on the ground. To that end we opened an office 
in India in January 2012 and are already seeing exciting new 
opportunities that will be pursued during the year.
France performed well in the year growing revenues by 46% 
from £2.4 million in 2010 to £3.5 million in 2011 and significantly 
increasing operating profits. In Germany revenues declined by 
21% from £2.9 million in 2010 to £2.3 million in 2011, however, 
revenues in 2011 were at a higher gross margin which resulted 
in an increase in operating profit. The main reason for the 
reduction in revenues was due to two major customers carrying 
stock from 2010 and not placing new orders for delivery during 
2011. They have now reduced the stock levels that they were 
holding and have placed orders at the beginning of 2012 for 
Chief Executive Officer’s Review
The results of the underlying business reflects the 
progress that has been made in all areas of the business.
■ Orders ■ Sales
Orders and sales 2007 to 2011 
(£m)
Performance highlights
2007
£25
£20
£15
£10
£5
£0
16
14
2008
19
18
2009
13
15
2010
22
21
2011
21
23 www.densitron.com Stock Code: DSN
Our Business Our Governance Our Financials
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delivery during the year. I reported last year that Finland had 
experienced a difficult year and that new products had been 
introduced into the market. The product introductions have 
taken longer than expected to have an impact and during 2011 
revenues declined further from £0.6 million to £0.5 million but 
due to control of administrative expenses the loss experienced 
for the year was minimal. We saw that activity and opportunities 
grew through 2011 and we are now seeing a significant 
improvement in orders being booked which should result in 
sales during 2012.
US business — The US business continued to perform 
extremely well with revenues increasing 15% from £6.8 million 
in 2010 to £7.8 million in 2011 and operating profits increasing 
35% from £572,000 in 2010 to £774,000 in 2011. 
I reported last year that the US business was important for 
the rest of the Group, with the introduction of new products. 
It has continued to develop new products that will benefit the 
Group in the second half of 2012 and beyond. Additionally 
Brazil has been identified as a location where the Group has 
an opportunity to conduct business and to this end the US 
business is carrying out a controlled entry into the Brazilian 
market in the early part of 2012.
In 2011 the US business played a major part in moving the 
Group forward and that will continue into the future. The US 
business is managed by Greg Hayes and I would like to thank 
him and his team for the work that they have done, not only in 
growing the US business, but also for the product development 
that benefits the Group as a whole. Despite the fact that Greg 
has decided to step down from his position as a main Board 
member he will remain as President of the US business and is 
committed to the strategy in place for the US business and the 
Group as a whole.
Asian business — The Asian business is made up of the 
Group’s subsidiary located in Japan selling display products 
into the Japanese market and a subsidiary that is located in 
Taiwan that acts as a facilitator to the Group for products that 
are sourced and manufactured in Taiwan and mainland China. It 
also has a limited amount of sales into the Taiwanese domestic 
market.
Japan continued with the success that it achieved in 2010, 
growing revenues by 26% from £1.9 million in 2010 to £2.4 
million in 2011. It also increased its profit from operations from 
£113,000 in 2010 to £307,000 in 2011, an increase of 172%. 
It is important to understand this achievement in context; our 
Japanese subsidiary is selling Chinese and Taiwanese displays 
into a market that is renowned for its locally manufactured high 
quality displays. The team located in Japan is very experienced 
and should be congratulated for the tremendous result that they 
achieved in 2011 particularly in light of the difficulties that they 
experienced following the earthquake and subsequent tsunami 
that hit Japan in March 2011.
Densitron Display Taiwan Limited provides the Group with 
a support operation that provides project management, 
engineering support and supplier relationship services to the 
rest of the Group. It also provides some direct sales into the 
Taiwanese market. In the current year revenues fell by 44% from 
£0.9 million in 2010 to £0.5 million in 2011 but the gross profit 
on this revenue increased by 20% from £88,000 in 2010 to 
£106,000 in 2011.
Sales by location of subsidiary over  
past three years (£m)
■ 2009 ■ 2010 ■ 2011
£9.0
£8.0
£7.0
£6.0
£5.0
£4.0
£3.0 
£2.0
£1.0
£0.0
USA
5.2
6.8
7.8
UK
3.5
5.3
6.1
Germany
2.2
2.9
2.3
France
2.0
2.4
3.5
Finland
0.7
0.6
Japan
1.3
1.9
2.4
T aiwan
0.2
0.9
0.5
0.5 Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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Chief Executive Officer’s Review continued
Outlook and future strategy
Over the last few years we have re-established the name of 
Densitron as a leading brand in the provision of industrial display 
solutions. The key focus for the future is to build on this but we 
also recognise that in the near term the opportunity to grow 
organically through increased market share will diminish. We 
believe that the existing strategy of the Company remains sound 
but also believe that it is important that we develop additional 
solutions in order to drive the business forward. We will continue 
with the existing strategy of: 
 ❙ Increasing market share from the existing business — we 
consider that all of the subsidiaries have the ability to 
continue to grow market share and that several are yet to 
achieve the level of market share that we would expect from 
them;
 ❙ Geographical expansion of the business — in 2012 we 
have opened an office in India which we consider to be 
a tremendous opportunity and we will be carrying out a 
controlled entry into the Brazilian market; and
 ❙ Introduction of new products to the current product offerings 
— during 2011 we introduced e-paper and have received a 
good level of enquiries and are currently working on some 
exciting opportunities. We will continue to introduce new 
product offerings that we consider will enhance the Group’s 
portfolio of products.
We have added a further element to the strategy that we believe 
will enable the Group to move to another level. 
 ❙ Creation of more value by development of the Group’s 
own products and intellectual property — in order to 
keep existing customers and attract new customers it is 
important that the Group offers something different from 
its competitors. In order to do this the Group is creating its 
own intellectual property and bespoke range of products 
and these will be available to the market later in 2012. By 
listening to what our customers are trying to achieve with 
their business we believe we will be better positioned to 
target our product offerings in the most appropriate direction 
in order to service their needs. The projects that are currently 
being worked on are exciting and I look forward to being 
able to give further information to shareholders on them.
I would like to congratulate and thank all of the staff within 
Densitron for their hard work and dedication to the Group during 
the year and look forward to the business progressing further in 
the forthcoming year.
Grahame R Falconer
Chief Executive Officer
10th May 2012 www.densitron.com Stock Code: DSN
Our Business Our Governance Our Financials
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Directors and Advisers
Jan Holmstrom
Non-Executive Director (appointed October 2007)
Jan is the nominee of Bronsstädet AB and is the Managing 
Director of Browallia AB a subsidiary of Bronsstädet AB. 
He has broad management experience in the UK and 
the Far East. Jan is the Chairman of the Nomination and 
Remuneration committees and a member of the Audit 
committee.
Grahame Falconer 
Chief Executive Officer (appointed August 2004)
Grahame joined the Board as Sales and Marketing Director 
in August 2004. He has a BSc Hons in Computing Sc from 
the University of Glasgow and a Diploma in Management 
Studies. Following the move to a divisional structure he 
became the Managing Director of the Display Solutions 
Division and was appointed Chief Executive Officer in 2008. 
He is a member of the Institute of Sales and Marketing, 
formerly serving as Global Sales and Marketing Director 
of StatPro Plc and was previously Strategic and European 
Sales Director of Netg Plc.
Richard Lane OBE
Non-Executive Director (appointed June 2005)
Richard is a Chartered Accountant, who retired as a 
Senior Partner from the Bromley Office of BDO Stoy 
Hayward, Chartered Accountants in December 2003. He 
specialised, and continues to do so, in advising businesses 
on the development and implementation of their Growth 
Strategies. He is a non-executive director of a small 
number of companies, and is very much involved in a 
variety of local and national charities and other voluntary 
sector organisations. Richard is the Chairman of the 
Audit committee and a member of the Nomination and 
Remuneration committees.
Tim Pearson
Group Finance Director (appointed April 2007)
Tim is a member of the Institute of Chartered Accountants 
England and Wales and has a BA (hons) in Accounting and 
Finance. He joined the Group in 1992 and following a number 
of roles he was appointed Company Secretary in 2002. Tim 
joined the Board as Finance Director in April 2007. 
John Farrell
Non-Executive Director (appointed January 2010)
John is the owner and managing director of the Sterling 
Property Holdings Group of companies and controls Sterling 
Trust Limited. Prior to acquiring control of Sterling Trust in 
1993, he worked in various banks in the City of London 
including Morgan Grenfell & Co and The Bank of New York, 
specialising in corporate finance and corporate and asset 
based lending. John is a member of the Audit, Remuneration 
and Nomination committees.
Secretary and Registered 
Office
Tim Pearson
4th Floor
72 Cannon Street
London EC4N 6AE
Nominated Adviser and 
Stockbroker
Westhouse Securities 
Limited
One Angel Court
London EC2R 7HJ
Solicitors
K & L Gates
One New Change
London EC4M 9AF
Auditors
BDO LLP
2 City Place
Beehive Ring Road
Gatwick
West Sussex RH6 0PA
Principal Banker
Barclays Bank PLC
80 High Street
Sevenoaks
Kent TN13 1LR
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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The Directors have pleasure in submitting this report together 
with the accounts of Densitron Technologies plc (‘the Company’) 
and its subsidiary undertakings (together ‘the Group’) for the 
year ended 31 December 2011.
Principal activities and results
The Group’s principal activities are in the design, development 
and delivery of display technologies and related electronics on 
an international basis. It operates from subsidiaries based in the 
UK, US, Japan, Taiwan, France, Finland and Germany and also 
uses a network of distributors to enhance its global reach.
 
The Group profit after taxation and non-controlling interests 
amounted to £818,000 (2010: loss £674,000). The loss made in 
2010 was the result of a disposal of an available-for-sale asset 
and excluding this the profit after taxation and non-controlling 
interests amounted to £500,000.
Review of the business
The Directors are delighted with the continuing progress that the 
Group has made during the year. Despite the negative economic 
forecasts the Group has increased its revenues by 11.4% from 
£20,770,000 to £23,130,000 and gross profit by 17.4% from 
£5,842,000 to £6,856,000.
During 2010 the Group received a number of “last time buy 
orders” from customers (for displays that the manufacturers 
were discontinuing) and as a result it was anticipated that the 
level of sales for 2011 would exceed the level of new orders 
received in 2011 and this is how it turned out. The level of 
orders received during the year was £21.2 million compared 
with £21.8 million orders booked during 2010. 
Key performance indicators
The Directors set budgets for the year which are reviewed 
against the management accounts on a monthly basis. In 
addition to these results, the Directors review a number of 
key performance indicators to assess the performance of the 
business and assist in decision making. Some of the indicators 
that are monitored are:
Order intake — The first tangible indicator of the health of the 
Group is the level of orders that are being booked. The Board 
monitors not only the level of orders booked during each month 
against budget but also the 12 month moving average order 
intake. In order to achieve its medium term strategy the Board 
needs to be comfortable that, while orders booked on a monthly 
basis may be subject to peaks and troughs, the moving average 
trend is at an adequate level. During the year the orders that 
were booked amounted to £21.2 million (2010: £21.8 million) 
against a budget of £23.9 million (2010: £18.8 million). The 
directors are disappointed that the target that was set has not 
been achieved but recognise that the point at which an order is 
booked is not certain. Several orders that were expected to be 
received during December were not received until January 2012. 
The Directors are confident that the level of opportunities being 
worked on are sufficient to grow the order intake into the future.
Revenue — The Board considers that the growth of revenue 
is key to the future of the business, while building order input 
is important it is imperative that these orders are delivered to 
customers in a timely manner. During the year the revenue 
achieved was £23.1 million (2009: £20.8 million) against a 
budget of £22.9 million (2010: £17.9 million). The Directors 
are pleased with the increase in revenue during the year 
and combined with the level of order input are able to gain 
confidence in the continuing progress of the business in the 
short to medium term.
Book to bill ratio — The book to bill ratio is the ratio of orders taken 
to sales made. The Board recognises that in order for the business 
to grow the Group needs to be booking orders at a ratio of orders 
to sales in excess of 1. The ratio is looked at on a weighted average 
basis in order to take account of fluctuations from month to month. 
The weighted average ratios achieved on the business’ s continuing 
operations was 0.92 (2010: 1.05). The Directors recognise that there 
were a number of extraordinary orders received during 2010 for 
products that were being discontinued so expected that the ratio 
would fall below 1 for the year. 
Gross margin percentage — The Board recognises the 
importance of growing the Group’s turnover but believes 
that this should only be done at acceptable margins. To that 
end gross margin targets are set and monitored. The margin 
achieved on continuing operations was 29.6% (2010: 28.1%) 
against a target of 29.5% (2010: 30.7%). The Directors were 
pleased with the result for the year. 
Operating margin
The Directors consider that the operating margin (the ratio 
of operating profit to revenue) is important to ensure that the 
business is deriving an acceptable return for its Shareholders. 
The Group’s goal is to achieve between 8% and 10% but 
recognise that to do this the business needs to grow while 
expenses are controlled. The return achieved during the year 
was 5.3% (2010: 3.7%) against a budget of 6.9% (2010: 
2.8%). The Directors are pleased that the business has made 
a progression towards the ultimate target of between 8% 
and 10% but are disappointed that the target set for the year 
was not achieved. This was in part due to additional travel 
costs required during the year and costs associated with the 
management of the land at Blackheath and legal fees. 
Report of the Directors www.densitron.com Stock Code: DSN
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Our Business Our Governance
Working capital ratios — The Board recognises the need to 
not have its cash tied up excessively in working capital and 
to that end sets targets for inventory days, debtor days and 
creditor days. 
Inventory — The actual number of days carried in inventory was 
29 days (2010: 32 days) against a target of 20 days (2010: 21 
days). The Directors took the decision to take a certain amount 
of stock of products that had been discontinued in order to meet 
future demand from specific customers. The Directors are satisfied 
that this inventory will be sold during the forthcoming year.
 
Debtors — This represents the number of days taken to collect 
amounts due from customers. In 2011 the average collection 
was 54 days (2010: 56 days) against a target of 64 days (2010: 
53 days). The Directors had recognised that the agreed terms 
with a number of larger customers had risen and consequently 
took account for this when setting the budget debtor days. Due 
to the mix of sales during the year and at the year end the level 
of debtors days achieved was better than had been budgeted.
 
Creditors — This represents the length of time to settle the 
Group’s liabilities. The average time taken to settle liabilities in 
2011 was 37 days (2010: 54 days) against a target of 40 days 
(2010: 38 days). The Directors ensure that amounts due are 
settled within a reasonable timeframe in order to maintain a 
good relationship with the Group’s suppliers. The Directors are 
satisfied with the timeframe in which liabilities were settled during 
the year.
 
Post balance sheet events
Following the year end the Company received notification of 
legal proceedings by the landlord of premises in Newcastle 
previously occupied by Densitron Ferrograph Limited, a 
company the Group sold in 2006. The action from the landlord 
involves seeking rectification of an existing lease to seek to 
make Densitron Technologies plc the tenant under the lease and 
involves a claim of approximately £300,000 in unpaid back rent. 
If the action were to succeed there would also be a liability for 
unpaid past business rates of approximately £70,000.
The lease of the premises previously occupied by Densitron 
Ferrograph Limited runs until 2023 and contains provisions for 
rent reviews in 2013 and 2018 and an outstanding rent review 
in 2008. The annual rent on the premises is currently £167,000 
and the annual business rates on the premises are currently 
£60,000. The premises are at present unoccupied.
Densitron, after taking legal advice, intends to defend the claim 
vigorously but at this time the outcome cannot be forecast with 
any level of certainty. In addition to investigating further the 
underlying circumstances, Densitron will be seeking to agree 
the reletting of the premises by the landlord on a basis that is 
without prejudice to the existing claim to limit the possible overall 
liability.
Risks and uncertainties
The Directors recognise that risk is inherent in any business and 
seeks to manage risk in a controlled manner. The key business 
risks are set out below:
Commercial — the Group is positioned in a marketplace 
that continues to grow despite global economic uncertainties 
and it is consequently an attractive marketplace in which to 
operate. Consequently competition is strong from a number of 
companies local to the region in which the Group subsidiaries 
operate and the distribution arms of international manufacturers. 
In order to mitigate commercial risk, the Group targets a specific 
niche in the market that is less attractive to a distributor due to 
the volumes and the technical complexity of the products being 
sold. The Group targets low volume customized business which 
requires significant technical input and this is less attractive to 
pure distributors who generally target high volume business at 
lower margins. With the level of technical expertise that it has 
developed over a number of years, the Group is able to compete 
successfully against companies that target the same type of 
business in the regions in which it operates.
Geographic and environmental — all companies are subject 
to risks associated with geographical and environmental issues. 
In the last two years the Group has faced product supply issues 
as a result of the Icelandic volcano and the earthquake and 
subsequent tsunami in Japan. These environmental issues 
cannot be managed directly by the Group but by having a global 
spread of subsidiaries and customers and a range of suppliers 
the impact on the Group can be limited.
Economic — the Group is subject to the same economic risk 
that other businesses are subject to during a period of economic 
downturn. The Group seeks to manage this risk in a number of 
ways:
 ❙ maintaining a broad range of customers and suppliers; 
 ❙ ensuring that the business conducts business globally;
 ❙ operating in a wide range of markets;
 ❙ setting the amount of core business expense at a level 
required to support the forecast level of business. Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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Supply chain — a substantial part of the Group’s business is 
long term and repeat business. To be able to deliver continuous 
supply to customers this depends on suppliers being able to 
deliver on time and to the same quality over a number of years. 
This is managed by close relationships being formed with a 
number of key suppliers and frequent quality reviews being 
carried out.
Employee risk — the type of business that the Group conducts 
relies on the technical knowledge of its staff to be able to 
work with its customers to develop the best solution for the 
customer’s requirements. Due to the competitive nature of 
the markets in which the Group operates it cannot guarantee 
to retain key staff within the business which could potentially 
damage its future growth potential. In order to mitigate this risk 
the Group has entered into contractual arrangements with all 
key individuals and incentive plans have been designed to retain 
their services.
Financing — The Group’s funding requirements are primarily 
provided by its Bankers. The Board seeks to maintain close 
relationships with its funders to ensure a good working 
relationship.
Financial — The Group has a specific exposure to credit 
risk, foreign currency risk and liquidity risk. The Directors have 
adopted a range of methods in which they seek to manage 
these risks. Further details in the way in which these risks are 
managed are discussed in note 22.
The Group holds a weekly Executive Meeting at which the 
business risks are reviewed and any areas that are causing 
concern are discussed and an action plan to either manage 
the risk or resolve any issues is put in place.
The risks outlined above are not an exhaustive list of the risks 
faced by the Group and are not intended to be presented in any 
order of priority.
Dividends
A dividend of £138,338 equating to 0.2p per share was paid 
in the year (2010: £69,169) and the Directors recommend the 
payment of a final dividend of £278,676 equating to 0.4p per 
share (2010: £138,338). 
Following the disposal of the Group’s investment in Taiwan a 
capital reduction of £2,766,764 equating to 4p per share and 
a special dividend of £691,691 equating to 1p per share were 
approved on 27 May 2011.
Research and development
The Group’s activities in this field relate to the development of 
specific projects and products for commercial purposes.
Directors
The Directors that served during the year were:
J Holmstrom — Non Executive Chairman
R Lane — Non Executive Director
G Falconer — Chief Executive Officer
T Pearson — Group Finance Director
G Hayes — President Densitron Corporation of America 
(resigned 7 March 2012)
J Farrell — Non Executive Director
In accordance with the Articles of Association, Mr R Lane and 
Mr J Farrell retire by rotation and, being eligible, offer themselves 
for re-election. 
Neither of the Directors seeking election has a service contract 
with the Company or any of its subsidiaries of more than one 
year’s duration nor requiring more than one year’s notice of 
termination.
Biographies of all Directors are given in the Directors and 
Advisers section on page 11.
Employees
The Group has continued to give full and fair consideration 
to applications made by disabled persons, having regard to 
their respective aptitudes and abilities, and to ensure that they 
benefit from training and career development programmes 
in common with all employees. The Group has continued its 
policy of employee involvement by making information available 
to employees through the medium of frequent staff meetings, 
together with personal appraisals and feedback sessions.
Share options
Historically the Company’s policy has been to grant options to 
reward special services to the Company or to meet specific 
requirements. There has been no departure from this policy 
during the year under review and there were no share options in 
place at the end of the year. 
Report of the Directors www.densitron.com Stock Code: DSN
Our Financials
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Our Business Our Governance
Substantial shareholdings
As at 1st April 2012, the following interests in 3% or more of the 
issued ordinary share capital appear in the register maintained 
under the provisions of Section 808 of the Companies Act 2006.
No. of shares
Percentage 
of issued 
share capital
Mr Peter Gyllenhammar 20,745,000 29.78%
Sterling Property Trust Ltd 11,509,675 16.52%
Nordea Bank Luxembourg 4,406,308 6.32%
Mr and Mrs W and S Campbell 2,800,000 4.02%
Payment of creditors
The Group does not follow any published code or statement 
on payment practice. However, it is the Group’s policy to settle 
all amounts due to its creditors on a timely basis, taking into 
account the credit period given by each creditor. Further details 
on the payment of creditors is given in the key performance 
indicator section earlier in this report.
Corporate governance
There is currently no requirement for AIM companies to 
comply with current corporate governance guidelines but the 
Board considers that it is appropriate to do insofar as they are 
appropriate for a Company of this size.
Board of Directors
The Board of Directors comprises the Chairman, two executive 
Directors and two non-executive Directors, their biographical 
details are shown on page 11 under Directors and Advisors. 
The intention is to maintain a Board with a broad range and 
level of business experience which will enable it to provide clear 
and effective leadership of the Group. The Board meets at least 
six times a year and more frequently if required. The Board 
has a schedule of matters reserved to it for decision and the 
requirement for Board approval on these matters is known to 
the senior management within the Group. These include such 
matters as appointments to the Boards of subsidiaries, material 
capital investment projects, material revenue commitments 
and business acquisitions and disposals. Below the Board and 
responsible for day to day business matters and issues and 
driving Board strategies is the Executive Board which is chaired 
by the Chief Executive Officer and comprises the Chairman, 
Finance Director and President of the US subsidiary. The 
Executive Board generally meets on a weekly basis.
Each of the Directors is subject to election by the Shareholders 
at the first opportunity after their appointment and to re-election 
at regular intervals or at least every three years.
There is an agreed procedure by which the Directors may take 
independent professional advice in the furtherance of their 
duties as Directors at the expense of the Company. Each of the 
Directors has access to the advice and services of the Company 
Secretary.
Committees — The Group has three committees, the 
nomination, remuneration and audit committees. 
 ❙ The nomination committee is chaired by John Farrell and 
is made up of Jan Holmstrom and Richard Lane. The 
committee meets as required to recommend the filling of a 
vacant position on the Board.
 ❙ The remuneration committee is chaired by John Farrell 
and is made up of Jan Holmstrom and Richard Lane. The 
committee meets as required and is responsible for the 
recommendation of the executive Directors’ remuneration. 
The Board is responsible for the approval of all remuneration 
packages with the director whose pay is under review 
excluded from the approval process.
 ❙ The audit committee is chaired by Richard Lane and made 
up of Jan Holmstrom and John Farrell. The committee meets 
as required during the year and meets with the Group’s 
Auditors regarding the Annual Report and Accounts prior to 
submission to the Board for approval.
Communication with Shareholders
The Company recognises the importance of communication with 
its Shareholders to ensure that its strategies and performance 
are clearly understood. This is principally achieved through the 
Company’s Interim and Annual Report along with the Annual 
General Meeting. In addition a range of corporate information is 
available on the Company’s website. The Executives additionally 
carry out roadshows following the announcement of the Interim 
and Annual Reports to give further details of the results and the 
Company as a whole to investors and prospective investors.
Accountability and audit
Internal financial controls — the Board of Directors has 
overall responsibility for the Group’s system of internal financial 
controls, which have been designed to provide reasonable, but 
not absolute assurance against misstatement or loss. The key 
procedures that the Group has are:
 ❙ A comprehensive budgeting process at subsidiary 
level which is reviewed by the executive team prior to 
recommendation to the full Board.
 ❙ Monitoring of actual results compared to budget for each 
subsidiary on a monthly basis.
 ❙ A clearly defined organization structure for each subsidiary 
detailing the roles and responsibilities of each of the 
subsidiaries personnel.
 ❙ Defined procedures for the appraisal, review and 
authorization of revenue, capital and development 
expenditure. Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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Going concern
The Group’s business activities, together with the factors that 
are likely to affect the future of the business are set out in the 
Chairman’s statement on pages 6 and 7 and the Chief  
Executive Officer’s Review on pages 8 to 10. 
The Directors have reviewed the current cash flow projections 
for the next twelve months taking account of possible changes 
in trading performance and existing borrowing facilities. The 
Directors have no reason to believe that any of the existing 
borrowing facilities might be withdrawn or that there would be 
any other material changes to the current financial projections of 
the Group. As a result the Directors have formed a judgement 
that there is reasonable expectation that the Group has 
adequate resources to continue in operational existence for the 
foreseeable future. For this reason the Directors consider that it 
is appropriate to continue to adopt the going concern basis in 
the preparation of these financial statements.
Relationship with the Group’s Auditor
During the year the Company’s auditor, BDO LLP , provided 
tax and other non-audit services to the Company and its 
subsidiaries. The Board has considered the effect that this has 
on the independence of the auditor and has concluded that the 
provision of these services has not affected the independence 
of the auditor. The Audit committee is responsible for the 
monitoring of the scope of the auditors work.
Statement of Directors’ responsibilities
The Directors are responsible for preparing the annual report and 
the financial statements in accordance with applicable law and 
regulations. 
Company law requires the Directors to prepare financial 
statements for each financial year. Under that law the Directors 
have elected to prepare the Group financial statements in 
accordance with International Financial Reporting Standards 
(IFRSs) as adopted by the European Union and the Company 
financial statements in accordance with United Kingdom 
Generally Accepted Accounting Practice (United Kingdom 
Accounting Standards and applicable law). Under Company law 
the Directors must not approve the financial statements unless 
they are satisfied that they give a true and fair view of the state 
of affairs of the Group and Company and of the profit or loss 
of the Group for that period. The Directors are also required to 
prepare financial statements in accordance with the rules of the 
London Stock Exchange for companies trading securities on the 
Alternative Investment Market. 
In preparing these financial statements, the Directors are 
required to:
 ❙ select suitable accounting policies and then apply them 
consistently;
 ❙ make judgements and accounting estimates that are 
reasonable and prudent;
 ❙ state whether they have been prepared in accordance with 
IFRSs as adopted by the European Union, subject to any 
material departures disclosed and explained in the financial 
statements; and
 ❙ prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the Company will 
continue in business.
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Company’s 
transactions and disclose with reasonable accuracy at any time 
the financial position of the Company and enable them to ensure 
that the financial statements comply with the requirements 
of the Companies Act 2006. They are also responsible for 
safeguarding the assets of the Company and hence for taking 
reasonable steps for the prevention and detection of fraud and 
other irregularities.
Website publication
The Directors are responsible for ensuring the annual report 
and the financial statements are made available on a website. 
Financial statements are published on the Company’s website 
in accordance with legislation in the United Kingdom governing 
the preparation and dissemination of financial statements, which 
may vary from legislation in other jurisdictions. The maintenance 
and integrity of the Company’s website is the responsibility of 
the Directors. The Directors’ responsibility also extends to the 
ongoing integrity of the financial statements contained therein.
Report of the Directors www.densitron.com Stock Code: DSN
Our Financials
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Our Business Our Governance
Parent Company financial statements
Company law requires the Directors to prepare financial 
statements for each financial year which give a true and fair 
view of the state of affairs of the Company and of the profit or 
loss of the Company for that period. In preparing these financial 
statements, the Directors are required to:
 ❙ select suitable accounting policies and then apply them 
consistently;
 ❙ prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the Company will 
continue in business. 
 ❙ make judgements and estimates that are reasonable and 
prudent; and
 ❙ state whether applicable accounting standards have been 
followed, subject to any material departures disclosed and 
explained in the financial statements.
Political and charitable donations
No political or charitable donations were made in the year (2010: 
£nil).
Auditors
BDO LLP have expressed their willingness to continue in 
office. A resolution to reappoint them will be proposed at the 
forthcoming Annual General Meeting.
Each of the Directors confirms that he is aware of no relevant 
audit information of which the auditors are unaware and that he 
has taken all steps that he should have taken as a Director to 
make himself aware of such information and to establish that the 
auditors are aware of it.
The Report of the Directors was approved by the Board on and 
signed on its behalf by:
Tim Pearson
Group Finance Director
and Company Secretary
10th May 2012 Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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We have audited the financial statements of Densitron 
Technologies Plc for the year ended 31 December 2011 which 
comprise the group income statement, the group statement 
of financial position and company balance sheet, the group 
statement of comprehensive income, the group statement of 
cash flow, the group statement of changes in equity and the 
related notes. The financial reporting framework that has been 
applied in the preparation of the group financial statements is 
applicable law and International Financial Reporting Standards 
(IFRSs) as adopted by the European Union. The financial 
reporting framework that has been applied in preparation of 
the parent company financial statements is applicable law 
and United Kingdom Accounting Standards (United Kingdom 
Generally Accepted Accounting Practice). 
This report is made solely to the company’s members, as a 
body, in accordance with Chapter 3 of Part 16 of the Companies 
Act 2006. Our audit work has been undertaken so that we might 
state to the company’s members those matters we are required 
to state to them in an auditor’s report and for no other purpose. 
To the fullest extent permitted by law, we do not accept or 
assume responsibility to anyone other than the company and 
the company’s members as a body, for our audit work, for this 
report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the statement of directors’ 
responsibilities, the directors are responsible for the preparation 
of the financial statements and for being satisfied that they give 
a true and fair view. Our responsibility is to audit the financial 
statements in accordance with applicable law and International 
Standards on Auditing (UK and Ireland). Those standards require 
us to comply with the Auditing Practices Board’s (APB’s) Ethical 
Standards for Auditors. 
Scope of the audit of the financial statements
A description of the scope of the audit of the financial 
statements is provided on the APB’s website at  
http://www.frc.org.co.uk/apb/scope/private.cfm.
Opinion on financial statements
In our opinion: 
 ❙ the financial statements give a true and fair view of the 
state of the group’s and the parent company’s affairs as at 
31 December 2011 and of the group’s profit for the year 
then ended;
 ❙ the group financial statements have been properly prepared 
in accordance with IFRSs as adopted by the European 
Union;
 ❙ the parent company’s financial statements have been 
properly prepared in accordance with United Kingdom 
Generally Accepted Accounting Practice; and
 ❙ the financial statements have been prepared in accordance 
with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 
2006
In our opinion the information given in the directors’ report for 
the financial year for which the financial statements are prepared 
is consistent with the financial statements. 
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters 
where the Companies Act 2006 requires us to report to you if, in 
our opinion:
 ❙ adequate accounting records have not been kept by the 
parent company, or returns adequate for our audit have not 
been received from branches not visited by us; or
 ❙ the parent company financial statements are not in 
agreement with the accounting records and returns; or
 ❙ certain disclosures of directors’ remuneration specified by 
law are not made; or
 ❙ we have not received all the information and explanations we 
require for our audit.
John Everingham (senior statutory auditor)
For and on behalf of BDO LLP , statutory auditor
Gatwick
United Kingdom
10th May 2012
BDO LLP is a limited liability partnership registered in England 
and Wales (with registered number OC305127).
Independent Auditor’s Report to the Members of 
Densitron T echnologies Plc www.densitron.com Stock Code: DSN
Our Financials
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Our Business Our Governance
Note
2011
£000
2010
£000
Continuing operations
Revenue 9 23,130 20,770
Cost of sales (16,274) (14,928)
Gross profit 6,856 5,842
Other operating income 6 78 174
Distribution costs (72) (62)
Administrative expenses (5,769) (5,276)
Loss on disposal of available-for-sale asset 8 — (1,174)
Profit/(loss) from operations 4 1,093 (496)
Financial income 7 1 6
Financial expenses 7 (33) (79)
Profit/(loss) before tax 1,061 (569)
Income tax expenses 10 (245) (109)
Profit/(loss) for the year 816 (678)
Attributable to:
Equity holders of the parent 818 (674)
Non-controlling interests (2) (4)
816 (678)
Basic and diluted earnings/(loss) per share 1.18p (0.97)p
Basic and diluted earnings per share on continuing operations  
(excluding loss on disposal of available for sale asset) 11 1.18p 0.72p
Consolidated Income Statement
For the year ended 31 December 2011 Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
20
21417.04       10/05/12        Proof 6
2011
£000
2010
£000
Profit/(loss) for the year 816 (678)
Other comprehensive income
Exchange gains on translation of foreign operations 50 137
Total other comprehensive income 50 137
Total comprehensive profit/(loss) for the year 866 (541)
Total comprehensive profit/(loss) attributable to:
Owners of the parent 870 (535)
Non-controlling interests (4) (6)
866 (541)
Consolidated Statement of 
Comprehensive Income
At 31 December 2011 www.densitron.com Stock Code: DSN
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Note
2011
£000
2010
£000
Non-current assets
Property, plant and equipment 12 806 757
Goodwill 13 143 143
Other intangible assets 14 174 87
Deferred tax assets 25 48 41
1,171 1,028
Current assets
Inventories 17 1,311 1,348
Trade and other receivables 18 4,673 4,916
Financial assets 16 74 165
Income tax recoverable 130 123
Cash and cash equivalents 1,809 6,002
7,997 12,554
Total assets 9,168 13,582
Current liabilities
Short term borrowings and overdrafts 20 1,694 2,246
Trade and other payables 19 2,503 3,499
Current tax payable 232 179
Provisions 24 134 34
4,563 5,958
Non-current liabilities
Borrowings 20 25 24
Provisions 24 117 117
Deferred tax liabilities 25 44 141
186 282
Total liabilities 4,749 6,240
4,419 7,342
Equity
Share Capital 26 697 3,483
Retained earnings 27 2,907 3,082
Special reserve 27 107 117
Revaluation reserve 27 450 450
Translation reserve 27 223 171
Equity attributable to shareholders of Densitron 4,384 7,303
Non-controlling interests 27 35 39
Total equity 4,419 7,342
The accounts were approved by the Board and authorised for issue on 10th May 2012 and signed on its behalf by:
Jan G Holmstrom
Chairman
Consolidated Statement of Financial Position
At 31 December 2011 Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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Note
2011
£000
2010
£000
Cash flows from operating activities
Profit/(loss) before taxation 1,061 (569)
Adjustments for:
Depreciation 60 49
Loss on the sale of available-for-sale asset — 1,174
Net finance expense 32 85
1,153 739
Change in financial assets (74) (165)
Change in inventories 23 (665)
Change in trade and other receivables 243 (1,220)
Change in trade and other payables (928) 1,190
Change in provisions 100 (60)
517 (181)
Income tax paid (299) 146
Net cash from operating activities 218 (35)
Cash flows from investing activities
Interest received 1 3
Proceeds from capital reduction of available-for-sale investment — 483
Proceeds from the disposal of available-for-sale investment — 3,476
Disposal of discontinued operation 165 393
Payment for intangible assets (87) (87)
Acquisition of property, plant and equipment (111) (116)
Net cash (used in)/generated from investing activities (32) 4,152
Cash flows from financing activities
Inception of new loans 83 —
Repayment of borrowings (24) (287)
Interest paid (33) (92)
Change in invoice discounting creditor (675) 450
Change in letters of credit (128) 675
Dividends paid to owners of the Company (968) (69)
Repayment of capital to owners of the Company (2,821) —
Net cash (used in)/generated from financing activities (4,566) 677
Net (decrease)/increase in cash and cash equivalents (4,380) 4,794
Cash and cash equivalents at 1st January 6,002 1,107
Effect of exchange rate fluctuations on cash held (6) 101
Cash and cash equivalents at 31st December 31 1,616 6,002
Consolidated Cash Flow Statement
For the year ended 31 December 2011 www.densitron.com Stock Code: DSN
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Share
Capital
£000
Translation
reserve
£000
Special
reserve
£000
Available
for sale
reserve
£000
Revaluation
reserve
£000
Retained
earnings
£000
Total
attributable 
to equity 
holders 
of parent
£000
Non-
controlling
interest
£000
Total
Equity
£000
Balance at 
1st January 2010 3,483 34 188 54 — 3,752 7,511 45 7,556
Loss for the year — — — — — (672) (672) (4) (676)
Other total 
comprehensive income — 137 — — — 137 (2) 135
Revaluation of land — — — — 450 — 450 — 450
Payment of dividends — — — — — (69) (69) — (69)
Disposal of available for 
sale investment — — — (54) — — (54) — (54)
Transfer from special 
reserve — — (71) — — 71 — — —
Balance at 31st 
December 2010 3,483 171 117 — 450 3,082 7,303 39 7,342
Balance at  
1st January 2011 3,483 171 117 — 450 3,082 7,303 39 7,342
Profit/(loss) for the year — — — — — 818 818 (2) 816
Other total 
comprehensive income — 52 — — — — 52 (2) 50
Payment of dividends — — — — — (968) (968) — (968)
Capital reduction (2,786) — — — — 2,806 20 — 20
Return of capital to 
shareholders — — — — — (2,786) (2,786) — (2,786)
Costs associated with the 
capital reduction — — — — — (55) (55) — (55)
Transfer from special 
reserve — — (10) — — 10 — — —
Balance at
31st December 2011 697 223 107 — 450 2,907 4,384 35 4,419
Statement of changes in shareholders equity
For the year ended 31 December 2011 Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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1. General
Densitron Technologies plc is a public limited company (“the Company”) incorporated in the United Kingdom under the Companies Act 2006 
(registration number 1962726).
The Company is domiciled in the United Kingdom and its registered address is 4th Floor, 72 Cannon Street, London, EC4N 6AE. The Company’s 
Ordinary Shares are traded on the Alternative Investment Market (“AIM”). The Group’s principal activities are the design, development and delivery of 
display and display related technologies.
2. Basis of preparation
(a) Statement of compliance
The financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards 
and Interpretations (collectively IFRSs) issued by the International Accounting Standards Board (IASB) as adopted by the European Union (Adopted 
IFRSs) and are in accordance with IFRS as issued by the IASB.
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis unless otherwise stated in the report. 
(c) Functional and presentational currency
These consolidated financial statements are presented in UK Sterling, which is the Company’s functional currency. All financial information presented 
in UK Sterling has been rounded to the nearest thousand.
(d) Use of estimates and judgements
The preparation of financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect 
the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these 
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which 
the estimates are revised and in any future periods affected. The main areas where estimates and assumptions have the most significant bearing on 
the carrying value of assets and liabilities are explained below:
Impairment of goodwill — In line with IAS 36 the Group is required to test the carrying value of goodwill, at least annually, for impairment. As part of 
this review process the recoverable amount of goodwill is determined using value in use calculations, which requires estimates for future cash flows 
and as such is subject to estimates and assumptions. Further details are contained in note 13 to the consolidated financial statements.
Depreciation of property, plant and equipment — Depreciation is provided in the consolidated financial statements so as to write down the 
respective assets to their residual values over their expected useful lives and as such the selection of the estimated useful lives and the expected 
residual value of the assets requires the use of estimates and judgement. Details of the estimated useful lives are as shown in the policy for 
depreciation.
Land valuation — Land has been included at a valuation based on a report conducted by a professional firm of property consultants. Further details 
of the valuation are contained in note 12 to the consolidated financial statements.
Financial assets — Available for sale investments are carried at fair value. The carrying value of the investments is reviewed annually based on fair 
value calculations. These calculations require estimates and assumptions to be made regarding future cash flows and discount rates to be applied. 
Further details are contained in note 16 to the consolidated financial statements.
3. Significant accounting policies
The principal accounting policies adopted are set out below.
Basis of Consolidation
Where the Company has the power, either directly or indirectly, to govern the financial and operating policies of another entity or business so as to 
obtain benefits from its activities, it is classified as a subsidiary. The consolidated financial information presents the results of the Company and its 
subsidiaries (the ‘Group’) as if they formed a single entity. Subsidiaries are included in the consolidation from the date that control commences until 
the date that control ceases. 
Where the Company has the power to significantly influence the operating and financial policies of another business it is treated as an associate and 
its results are accounted for on an equity basis. Where this power does not exist the Company will recognise the investment at either fair value or 
cost within non current assets.
Notes to the Consolidated Financial Statements 
For the year ended 31 December 2011 www.densitron.com Stock Code: DSN
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3. Significant accounting policies continued
Business combinations
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the consolidated balance 
sheet, the acquiree’s identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results 
of acquired operations are included in the consolidated income statement from the date on which control is obtained.
Business combinations that took place prior to 1 January 2006 have not been restated.
Revenue recognition
Revenue consists of sales of displays and display related products to the Group’s customers. Revenue from the sale of goods is recognised when 
the Group has transferred the significant risks and rewards of the ownership of the goods to the buyer and it is probable that the Group will receive 
the previously agreed upon payment. These criteria are generally considered to be met when the goods are delivered to the buyer. The value is 
recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is 
measured at the fair value of consideration, net of returns and value-added taxes.
Other operating income
Other operating income includes rents receivable, royalties receivable, commissions receivable and gains made on disposal of property, plant and 
equipment.
Goodwill
Goodwill arising on consolidation represents the excess of the cost of an acquisition over the fair value of the Group’s share of the identifiable net 
assets of the acquired subsidiary at the date of acquisition. Goodwill is recognised as an asset on the Group’s balance sheet in the year in which it 
arises. Goodwill is tested for impairment at least annually and more frequently if events or changes indicate that the carrying value may be impaired 
and is carried at cost less accumulated impairment losses. Any impairment is recognised immediately in the consolidated income statement and is 
not subsequently reversed. Goodwill arising on acquisitions before 1st January 2006 (the date of transition to IFRS) has been retained at the previous 
UK GAAP amounts subject to being tested for impairment at that date and subsequently.
Capitalised development
An internally generated intangible asset arising from development (or from the development phase of an internal project) is recognised if all of the 
following have been demonstrated:
 ❙ The technical feasibility of completing the intangible asset so that it will be available for use or sale;
 ❙ The intention to complete the intangible asset and use or sell it;
 ❙ The ability to use or sell the intangible asset;
 ❙ How the intangible asset will generate probable future economic benefits;
 ❙ The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
 ❙ The ability to measure reliably the expenditure attributable to the intangible asset during its development.
The amount initially incurred for internally generated intangible assets is the sum of the expenditure incurred to date when the intangible asset 
first meets the recognition criteria listed above. Where no internally generated intangible asset can be recognised, development expenditure is 
recognised in the income statement in the period in which it is incurred.
Subsequent to initial recognition, internally generated intangible assets are reported at cost less accumulated amortisation and accumulated 
impairment losses.
Amortisation is calculated to write down the cost of development over the expected period to which revenues are generated from the expenditure or 
five years whichever is shorter. Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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3. Significant accounting policies continued
Property, plant and equipment
Property, plant and equipment assets are carried at cost less accumulated depreciation and any recognised impairment in value. Freehold land is 
carried at a revalued amount. The land was last revalued in 2010 and it is intended that revaluations will be carried out by an independently qualified 
valuer periodically. In the years between the periodical valuations the directors review the value of the land and adjustments are made if the carrying 
values differ significantly from its fair value.
Increases in the carrying value arising from revaluations are credited to the revaluation reserve. Decreases in the carrying values from revaluations are 
first offset against increases from earlier revaluations in respect of the same asset and are thereafter charged to the income statement.
Depreciation is calculated to write down the cost of the assets to their residual values, on a straight-line method on the following bases:
Freehold buildings 2%–5%
Leasehold improvements over the period of lease
Plant and machinery 15%
Fixtures and fittings 10%–20%
Motor vehicles 20%
Computer equipment 15–25%
The assets’ residual values, useful lives and methods of depreciation are reviewed, and adjusted if appropriate on an annual basis. An item of 
property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain 
or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is 
included in the income statement as other income in the year that the asset is derecognised. All tangible fixed assets are reviewed for impairment in 
accordance with IAS 36, Impairment of Assets, when there are indications that the carrying value may not be recoverable.
Financial instruments
(a) Available for sale assets — Assets classed as available for sale are valued at their fair values. Valuations take place annually (or more often 
if deemed necessary). The carrying value of the investment is reviewed on an annual basis and any movement in its fair value is recognised 
through the statement of other comprehensive income. Where the decline in fair value of the asset was considered to be either significant or 
prolonged, this is considered to be the objective evidence of impairment, it is recognised through the income statement. Income received from 
investments in available-for-sale assets is recognised in the income statement except to the extent the receipt represents a return of the original 
investment, in which case the receipt is credited against its carrying value. 
 The Group disposed of its available-for-sale asset during 2010. This related to a 24.48% holding of the share capital of Evervision Electronics 
Limited (“Evervision”) a company incorporated in Taiwan. The Directors considered that the group did not have significant influence over 
Evervision and consequently treated the investment as a financial asset at its fair value. 
(b) Other financial assets — deferred consideration relating to asset disposals of the Company is included within financial assets at amortised cost. 
Royalties receivable based on future turnover of the businesses disposed of are recognised in the period in which they are earned. 
(c) Trade and other receivables — Trade and other receivables are initially recognised at fair value and thereafter at amortised cost less provision 
for impairment. 
(d) Cash and cash equivalents — Cash and cash equivalents in the balance sheet comprise cash at bank and in hand. Bank overdrafts that are 
repayable on demand and form an integral part of the Group’s cash management are included as components of cash and cash equivalents for 
the purposes of the cash flow statement.
(e) Trade and other payables — Trade and other payables are initially recognised at their fair values and subsequently carried at amortised cost 
using the effective interest method.
(f) Loans and borrowings — Loans and borrowings are initially recognised at their fair values net of any transaction costs directly attributable to the 
loan. These liabilities are subsequently measured at amortised cost using the effective interest rate method ensuring that any interest expense is 
recognised at a constant rate on the balance of the liability carried in the balance sheet. Interest expense will include transaction costs and any 
premium payable on redemption.
Inventories
Inventories are valued at the lower of cost and net realisable value. Cost is determined on a first in, first out basis and includes carriage and duty 
costs. Net realisable value is based on estimated selling price.
Notes to the Consolidated Financial Statements 
For the year ended 31 December 2011 www.densitron.com Stock Code: DSN
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3. Significant accounting policies continued
Foreign currencies
Foreign operations
On consolidation, the results of overseas operations are translated into sterling at rates approximating to those ruling when the transaction took 
place. All assets and liabilities of overseas operations are translated at the rate ruling at the balance sheet date. Exchange differences arising on 
translating the opening net assets at the opening rate and the results of overseas operations at actual rate are recognised directly in equity (the 
“translation reserve”).
On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that operation up to 
the date of disposal are transferred to the consolidated income statement as part of the profit or loss on disposal.
At the 1st January 2006 Densitron Technologies plc used an exemption available under IFRS 1, ‘First time adoption of International Financial 
Reporting Standards’, which resulted in cumulative exchange differences for all foreign operations being deemed to be zero at the date on transition 
to IFRS. Any gain or loss on the subsequent disposal would exclude translation differences that arose before the date of transition to IFRS and 
include only subsequent translation differences.
Foreign currency transactions
Transactions entered into by group entities in a currency other than the functional currency of the country in which they operate are recorded at the 
rates ruling when the transactions occur.  Foreign currency monetary assets and liabilities are translated at the rate ruling at the balance sheet date. 
Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are recognised immediately in the consolidated income 
statement. 
Provisions
Provisions are recognised when there is a present legal or constructive obligation as a result of past events, for which it is probable that an outflow 
of economic benefit will be required to settle the obligation, and where the amount of the obligation can be reliably measured. Provisions are 
determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessment of the time value of money 
and the risks specific to the liability.
Leased Assets
Leases are classified as finance leases when the terms of the lease transfer substantially all the risks and rewards of ownership to the Group. All 
other leases are classified as operating leases. Assets held as finance leases are recognised as assets of the Group at their fair value or, if lower, at 
the present value of the minimum lease payments during the lease term at the inception of the lease. Lease payments are apportioned between the 
reduction of the lease liability and finance charges in the income statement so as to achieve a constant rate of interest in the remaining balance of 
the liability. Assets held under finance leases are depreciated over the shorter of the estimated useful life of the assets and the lease term.
Assets leased under operating leases are not recorded on the balance sheet. Rental payments are charged directly to the income statement in the 
period in which they are incurred. Lease incentives, primarily up-front cash payments or rent-free periods are spread over the period of the lease 
term. Payments made to acquire operating leases are treated as prepaid lease expenses and amortised over the life of the lease.
The land and buildings element of property leases are considered separately for the purposes of lease classification.
Pensions
The Group contributes to the personal pension plans of certain staff. The contributions are charged as an expense as they fall due. Any contributions 
unpaid at the balance sheet date are included as an accrual at that date. The Group has no further payment obligations once the contributions have 
been paid.
Income Taxes
Current tax assets and liabilities are measured at the amount expected to be recovered or paid to the taxation authorities, based on tax rates and 
laws that are enacted or substantively enacted by the balance sheet date.
Deferred income tax is recognised using the balance sheet liability method, providing for temporary differences between the tax bases and the 
accounting bases of assets and liabilities. Deferred tax is calculated on an undiscounted basis at the tax rates that are expected to apply in the 
period when the liability is settled or the asset is realised, based on tax rates and laws enacted or substantively enacted at the balance sheet date. 
Deferred income tax liabilities are recognised for all temporary differences, except where the deferred income tax liability from the initial recognition of 
goodwill or of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither the accounting 
profit nor taxable profit or loss.
Deferred tax is charged or credited to the income statement, except when it relates to items charged or credited directly to equity, in which case the 
deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset against each other when they relate to income taxes levied by the 
same tax jurisdiction and when the Group intends to settle its current tax assets and liabilities on a net basis and there is a legal right of set-off. Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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3. Significant accounting policies continued
New Standards and interpretations
The International Accounting Standards Board and the International Financial Reporting Interpretations Committee have issued the following 
standards and interpretations that could potentially affect the Company and were not applied. These are to be applied to financial statements with 
periods commencing on the following dates:
Standards and interpretations Effective date
Disclosures — Transfers of Financial Assets (Amendments to IFRS 7) — This amendment requires disclosures of 
information in respect of all transferred financial assets that are not derecognised and for any continuing involvement in 
a transferred asset, existing at the reporting date, irrespective of when the related transfer transaction occurred. This will 
require the Group to give additional information in respect of debt factoring. 1st July 2011
Deferred tax: Recovery of underlying assets (Amendment to IAS 12) — this requires an entity to measure the deferred 
tax relating to an asset depending on whether the entity expects to recover the carrying amount of the asset through 
use or sale. The amendment provides a practical solution to the problem by introducing a presumption that recovery will, 
normally be, through sale. This is not expected to have a material impact on the Group. 1st January 2012
Presentation of items of other comprehensive income (Amendments to IAS 1) — the amendment requires companies to 
group together items within “Other Comprehensive Income” (OCI) that may be reclassified to the profit or loss section of 
the income statement. It is not anticipated that this will have an impact on the Group. 1st July 2012
Consolidated financial statement (IFRS 10) — this standard establishes the principles for the presentation of consolidated 
financial statements where an entity controls one or more other entities. It is not expected that this standard will result in 
any change in the way in which the Group presents its financial statements. 1st July 2012
Joint Operations (IFRS 11) — the standard sets out the principle that a party to a joint arrangement recognises its rights 
and obligations arising from that arrangement rather than focusing on the legal form. This new standard will not affect the 
Group financial statements. 1st January 2013
Disclosure of interests of other entities (IFRS 12) — This standard sets out the disclosure requirements for all forms of 
interests in other entities, including subsidiaries, joint arrangements, associates and unconsolidated structured entities. It 
is not expected that this new standard will have any significant impact on the Group financial statements. 1st January 2013
Fair value measurement (IFRS 13) — This standard defines fair value and sets out a single IFRS framework for measuring 
fair value and requires disclosures about fair value measurements. It is not anticipated that this standard will affect the 
disclosures to the Group’s financial statements. 1st January 2013
Separate financial statements (IAS 27) — This standard contains accounting and disclosures for investments in 
subsidiaries, joint ventures and associates when an entity prepares separate financial statements. The standard requires 
an entity preparing separate financial statements to account for those investments at cost or in accordance with the 
applicable financial instrument standard. It is not anticipated that this standard will have an impact on the Group’s 
financial statements. 1st January 2013
Investments in associates and joint ventures (IAS 28) — This standard sets out the required accounting for joint ventures 
as well as the definition and required accounting for associates. The Group does not have either joint ventures or 
associates so this standard will not affect the Group’s financial statements. 1st January 2013
Employee benefits (IAS 19) — The main changes to the standard revolve around the accounting for defined benefit 
pension schemes. The Group does not have a defined benefit pension scheme so the amendment will not have an 
impact on the Group’s financial statements. 1st January 2013
Disclosures offsetting financial assets and financial liabilities (amendments to IFRS 7) — this amendment introduces 
disclosures intended to enable users of financial statements to evaluate or potential effect of netting arrangements on 
an entity’s financial position. It is not anticipated that this will have a material impact on the disclosures to the Group’s 
financial statements. 1st January 2013
Offsetting financial assets and financial liabilities (amendments to IAS 32) — The amendments to IAS 32 seek to 
clarify rather than to change the offsetting requirements previously set out in IAS 32. The changes clarify the meaning 
of “currently has a legally enforceable right of set-off” and that some gross settlement systems may be considered 
equivalent to net settlement. It is not anticipated that the amendments will affect the disclosures to the Group’s financial 
statements. 1st January 2014
Financial Instruments (IFRS 9) — IFRS 9 will eventually replace IAS 39 in its entirety, however, the process has been 
divided into three main components — classification and measurement, impairment and hedge accounting. To date 
only classification and measurement and recognition/derecognition of financial instruments has been addressed. It is not 
anticipated that this will have a significant impact on the Group’s financial statements. 1st January 2015
Notes to the Consolidated Financial Statements 
For the year ended 31 December 2011 www.densitron.com Stock Code: DSN
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4. Profit/(loss) from operations
2011
£000
2010
£000
This has been arrived at after charging/(crediting):
Staff costs (see note 5) 3,642 3,555
Depreciation of property, plant and equipment 60 49
Foreign exchange (gains)/losses (80) 12
Design and Development costs 10 8
Operating lease expenses:
Plant and machinery 23 29
Property 212 198
Fees payable to the Company’s Auditor for: 
The audit of the company’s accounts 24 24
The audit of the company’s subsidiaries 91 87
Provision of taxation services 15 15
5. Employee information
The average number of employees (including directors) during the year was as follows:
2011 2010
Selling and marketing 21 21
Design and development 8 7
Administration 34 32
63 60
Staff costs for the above employees during the year amounted to:
2011
£000
2010
£000
Wages and salaries 3,043 2,980
Social security costs 449 449
Pension costs 150 126
3,642 3,555
Director’s remuneration
Salary
£000
Bonus
£000
Other 
payments
£000
Defined
contribution
pension
payments
£000
2011
£000
2010
£000
G Falconer (Chief Executive Officer) 100 — 11 26 137 190
G Hayes (President US business) 121 23 5 17 166 178
T Pearson (Group Finance Director) 95 — — 8 103 155
R Lane (Non Executive) 18 — — — 18 18
J Farrell (Non Executive) 18 — — — 18 15
352 23 16 51 442 556
In addition payments are made to Somerset AB in respect of services provided by Mr J Holmstrom. For the year ended 31 December 2011 the 
payments were £32,500 (2010: £30,000).
Included within the remuneration paid to G Falconer and T Pearson in 2010 is an amount of £13,000 which is in respect of bonuses paid following 
the disposal of Evervision Electronics Co. Ltd. These amounts have been included in the loss on disposal of Evervision. Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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6. Other operating income
2011
£000
2010
£000
Royalties receivable 74 165
Other 4 9
78 174
7. Financial income and expense
2011
£000
2010
£000
Financial income
Bank deposit interest 1 —
Interest on deferred consideration — 6
1 6
Financial expenses
Bank borrowings 18 65
Invoice discounting charge 15 14
33 79
8. Loss on disposal of available-for-sale asset
2011
£000
2010
£000
Proceeds received from the disposal — 3,476
Carrying value of the investment — (4,617)
Balance on available-for sale reserve — 54
Costs associated with the disposal — (87)
Loss on disposal — (1,174)
On 30 September 2010 the Group disposed of its investment in a Taiwanese manufacturing company, Evervision Electronics Co. Ltd (Evervision). 
The Group owned 24.48% of the ordinary share capital of Evervision but, in the directors’ opinion, was not able to exert significant influence and 
consequently had treated the investment as available-for-sale. During 2009 the Group received approximately £1.2m in respect of a capital reduction 
by Evervision and in 2010 a further £0.5m was received. The directors believed it was unlikely that further income would be received in the near 
future so took the opportunity to realise, what they considered to be, a reasonable offer on the investment despite the fact that this has led to a loss 
being realised in the 2010 results.
Notes to the Consolidated Financial Statements 
For the year ended 31 December 2011 www.densitron.com Stock Code: DSN
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9. Business and geographical segments
The chief operating decision maker in the organization is made up of an Executive Committee comprising the Executive Directors and Chairman, 
they have determined the operating segments detailed within this report and on which the business is managed. 
The Group is managed by the geographical location of its subsidiaries and resources are allocated as required on this basis:
 ❙ Europe — The European market, being so diverse, is serviced by subsidiaries based in four locations:
 ❙ UK — the UK is responsible for business conducted in the UK, management of the Group’s distribution network and sales into other 
locations where the Group does not have a physical presence. The UK business contributed 26% (2010: 26%) to Group revenues.
 ❙ France — the subsidiary in France is responsible for business conducted in France and with French customers whose manufacturing 
operations may be located elsewhere in the world. The French business contributed 15% (2010: 11%) to Group revenues.
 ❙ Finland — Densitron Nordic is the Group’s subsidiary located in Finland and servicing business locally along with Sweden and customers 
located in the Baltic region. The Finnish business contributed 2% (2010: 3%) to Group revenues.
 ❙ Germany — Densitron Deutschland is the Group’s subsidiary based in Germany. It is responsible for business conducted in Germany, 
Switzerland and Austria and through the Group’s distributor based in Germany. The German business contributed 10% (2010: 14%) to 
Group revenues.
In total the European region represented the largest part of the business contributing 53% (2010: 54%) to Group revenues. 
 ❙ US — the US segment is responsible for business conducted in the US, Canada and Central and South America. It represents 34% (2010: 33%) 
of the Group total revenues.
 ❙ Asia — The Asian segment is made up of subsidiaries located in Japan and Taiwan. 
 ❙ Japan — Densitron Japan is responsible for sales into Japan. It contributed 11% (2010: 9%) to Group revenues.
 ❙ Taiwan — Densitron Asia is the Group’s subsidiary located in Taiwan. It is primarily a facilitating function for the rest of the Group managing 
suppliers located in Taiwan and China. It contributed 2% (2010: 4%) to Group revenues.
Inter-segment transfer pricing is based on the level of work carried out and the risk encountered by each party in order to make a third party sale.
UK
£000
France
£000
Finland
£000
Germany
£000
US
£000
Japan
£000
Taiwan
£000
Total
£000
2011
Revenue
Total 7,794 3,516 472 2,328 7,997 2,434 7,045 31,586
Intercompany (1,703) (50) (21) — (158) — (6,524) (8,456)
Revenue from external customers 6,091 3,466 451 2,328 7,839 2,434 521 23,130
Profit/(loss) before tax 338 81 (14) 55 779 306 71 1,616
Balance Sheet
Assets 1,899 1,137 209 734 2,255 1,438 565 8,237
Liabilities (1,777) (268) (44) (101) (910) (263) (766) (4,129)
Net assets 122 869 165 633 1,345 1,175 (201) 4,108
Other
Interest payable 39 8 — — 3 1 — 51
Capital expenditure
— Property, plant and equipment — 7 — — 89 15 — 111
— Depreciation 1 3 1 1 51 — — 57 Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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UK
£000
France
£000
Finland
£000
Germany
£000
US
£000
Japan
£000
Taiwan
£000
Total
£000
2010
Revenue
Total 7,734 2,421 635 2,928 6,869 1,882 6,489 28,958
Intercompany (2,453) (66) — — (46) (22) (5,601) (8,188)
Revenue from external customers 5,281 2,355 635 2,928 6,823 1,860 888 20,770
Profit/(loss) before tax 117 (16) (21) (49) 575 112 89 807
Balance Sheet
Assets 3,191 938 244 816 1,970 1,092 1,381 9,632
Liabilities (2,984) (264) (44) (107) (763) (115) (1,519) (5,796)
Net assets 207 674 200 709 1,207 977 (138) 3,836
Other
Interest payable 42 3 — — 8 1 — 54
Capital expenditure
— Property, plant and equipment 4 2 — 1 100 — — 107
— Depreciation 1 2 2 1 37 — — 43
Reconciliation of reportable segments, profit and loss, assets and liabilities to the Group’s corresponding amounts:
2011
£000
2010
£000
Revenue
Total revenue for reported segments 31,586 28,958
Elimination of inter-segmental revenues (8,456) (8,188)
Group’s revenue per consolidated statement of comprehensive 23,130 20,770
2011
£000
2010
£000
Income
Profit/(loss) after income tax expense
Total profit for reporting segments 1,616 807
Costs associated with head office (555) (202)
Loss on disposal of available for sale investment — (1,174)
Income tax expenses (245) (109)
Profit/(loss) after income tax expense 816 (678)
2011
£000
2010
£000
Assets
Total assets for reportable segments 8,237 9,632
Assets attributable to Head Office 432 3,451
Land at Blackheath 499 499
Group assets 9,168 13,582
Liabilities
Total liabilities for reportable segments 4,129 5,796
Liabilities attributable to Head Office 620 444
Group liabilities 4,749 6,240
Notes to the Consolidated Financial Statements 
For the year ended 31 December 2011 www.densitron.com Stock Code: DSN
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The analysis of the Group’s segmental information by geographical location is:
External revenue by
location of customers
Non current assets by
location of asset
Capital expenditure by
location of assets
2011
£000
2010
£000
2011
£000
2010
£000
2011
£000
2010
£000
Total operations
UK 2,349 2,735 617 612 14 100
France 3,466 2,355 18 16 7 2
Finland 451 635 10 11 — —
Germany 2,328 2,928 100 101 — 1
Portugal 703 454 — — — —
Italy 557 122 — — — —
Other European 740 284 — — — —
USA 6,392 7,438 381 260 162 100
Canada 785 — — — — —
Other Americas 22 — — — — —
Japan 1,909 1,860 17 28 15 —
Taiwan 531 890 28 — — —
Malaysia 523 158 — — — —
China 1,405 623 — — — —
Other Asia 512 — — — — —
Tunisia 326 186 — — — —
Other Rest of the world 131 102 — — — —
23,130 20,770 1,171 1,028 198 203
10. Tax expense
2011
£000
2010
£000
Current tax expense
UK corporation tax and income tax of overseas operations on profits for the year 408 34
Adjustments for over provision in prior periods (59) (72)
349 (38)
Deferred tax expense
Origination and reversal of temporary differences (104) 147
Total tax charge 245 109
The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the UK applied to profits for the 
year are as follows:
2011
£000
2010
£000
Profit/(loss) before tax 1,061 (569)
Expected tax charge based on the standard rate of corporation tax in the UK of 26% (2010: 28%) 276 (159)
Losses carried forward 4 91
Disallowed expenses 37 442
Non taxable income — (171)
Movement in unprovided deferred tax assets — 2
Utilisation of tax losses brought forward (85) (36)
Adjustments for overseas rate 72 12
Adjustments to prior years tax charge (59) (72)
245 109 Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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11. Earnings per share
The earnings and weighted average number of ordinary shares used in the calculation of earnings per share are as follows.
2011
£000
2010
£000
Profit/(loss) attributable to ordinary shareholders 818 (674)
Exceptional loss — 1,174
Adjusted profit attributable to ordinary shareholders 818 500
2011
£000
2010
£000
Weighted average number of ordinary shares
Issued ordinary shares at 1st January 69,669,106 69,669,106
Effect of purchase of Treasury shares on 23 October 2008 (500,000) (500,000)
Weighted average number of ordinary shares at 31 December 69,169,106 69,169,106
12. Property, plant and equipment
Freehold land
and buildings
£000
Leasehold
improvements
£000
Plant and 
machinery
£000
Fixtures and 
fittings
£000
Computer 
equipment
£000
Total
£000
Cost
Balance at 1st January 2010 102 8 121 169 206 606
Additions — 36 57 14 9 116
Revaluation of land 450 — — — — 450
Disposals (24) — — (19) (26) (69)
Effect of movement in foreign exchange rate — — 3 (1) 4 6
Balance at 31st December 2010 528 44 181 163 193 1,109
Balance at 1st January 2011 528 44 181 163 193 1,109
Additions — 1 78 22 10 111
Revaluation of land — — — — — —
Disposals — — (3) (72) (4) (79)
Effect of movement in foreign exchange rate — — — (2) — (2)
Balance at 31st December 2011 528 45 256 111 199 1,139
Accumulated depreciation
Balance at 1st January 2010 37 — 65 153 116 371
Depreciation charge for the year 1 2 13 8 25 49
Disposals (24) — — (19) (26) (69)
Effect of movement in foreign exchange rate — — 1 (1) 1 1
Balance at 31st December 2010 14 2 79 141 116 352
Balance at 1st January 2011 14 2 79 141 116 352
Depreciation charge for the year 1 7 21 6 25 60
Disposals — — (3) (72) (4) (79)
Effect of movement in foreign exchange rate — — 1 (1) — —
Balance at 31st December 2011 15 9 98 74 137 333
Net book value
At 1st January 2010 65 8 56 16 90 235
At 31st December 2010 514 42 102 22 77 757
At 31st December 2011 513 36 158 37 62 806
Freehold land relates to 1.25 acres of land owned by the Group at Blackheath in South East London. The fair value of the land would be 
considerably greater if planning permission was to be granted but even without permission the Directors are of the opinion the fair value would be at 
least £500,000. During 2010 the directors engaged a firm of property consultants, Drivers Jonas Deloitte, to carry out a formal valuation of the land 
at 31 December 2010. This was carried out in accordance with RICS Valuation Standards (“The Red Book”) published by the Royal Institution of 
Chartered Surveyors.
The valuation that they put on the land was £500,000 and consequently, the directors have increased the valuation of the land accordingly and 
credited the uplift of £450,000 to the revaluation reserve in the year ended 31 December 2010.
Notes to the Consolidated Financial Statements 
For the year ended 31 December 2011 www.densitron.com Stock Code: DSN
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13. Goodwill
2011
£000
2010
£000
Balance at 1st January 2011 and 31st December 2011 143 143
Impairment reviews are carried out in March each year or more frequently if circumstances suggest there has been an impairment, for the purposes 
of the preparation of the accounts based on information at the previous December. The impairment reviews carried out in March 2012 and March 
2011 indicated that no impairment provision was necessary at 31st December 2010 or 31st December 2011.
Details of goodwill allocated to cash generating units for which the amount of goodwill so allocated is significant in comparison to total goodwill is as 
follows:
2011
£000
2010
£000
France 11 11
Germany 99 99
Finland 5 5
Asia 28 28
143 143
The recoverable amounts of all of the above cash generating units have been determined from value in use calculations based on cash flow 
projections from formally approved budgets covering the year to 31st December 2012.
 ❙ Cash flows were based on the internal budgets for 2012 with reference to the 3 year forecast to 2014 (for 2010 cash flows were based on the 
budgets for 2011 with reference to the 3 year forecast to 2013). Cash flows for a further 2 years were extrapolated using a constant growth rate. 
The rate of growth of each of the cash generating units is shown in the table below. No growth was forecast beyond this period.
 ❙ Each of the trading companies operates in its own geographical location and the nature of the business conducted can vary from location 
to location. Where business is of a standard nature assumptions have been made regarding the growth potential of these products. Where 
business is of a project nature there is far greater visibility of future business to be conducted in the future. Both of these types of business have 
been taken into account in putting the budgets together.
 ❙ The estimated weighted average cost of capital of the group is 13.2% (2010: 11.4%). In order to reflect the risks of each of the cash generating 
units the cash flows have been run using discount rates of between 12.50% and 20% (2010: 12.50% and 20%). The discount rate used for 
each of the cash generating units is shown in the table below.
 ❙ A sensitivity analysis was carried out on the cash flows for each of the cost generating units. The growth rates were reduced to zero and the 
discount rate in each unit was increased to 25%. In all cases the value in use exceeded the carrying value.
 ❙ The method used for calculating the value in use in 2011 was the same that had been used in 2010. Growth rates have been adjusted from 
those used in 2010 to reflect the respective cash generating units expected performances based on historical results and future opportunities. 
The discount rates used are unchanged and reflect risks associated with each of the cash generating units.  Similar sensitivity analyses were 
carried out for each of the cash generating units as was performed in 2010 and in each case the value in use exceeded the carrying value.  Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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13. Goodwill continued
Following the sensitivity analysis that was carried out there were no areas that were identified as being particularly sensitive for either 2011 or 2010.
Growth rate Discount rate applied
2011
%
2010
%
2011
%
2010
%
France 5.00 5.00 17.50 17.50
Germany 2.50 5.00 20.00 20.00
Finland 2.50 1.00 20.00 20.00
Asia 1.00 1.00 12.50 12.50
14. Other intangible assets
Capitalised 
development
£000
Cost
Balance at 1st January 2011 87
Additions 87
Additions from internal developments —
Balance at 31st December 2011 174
Accumulated amortisation
Balance at 1st January 2011 —
Amortisation expense —
Balance at 31st December 2011 —
The useful life of capitalized development expenditure is over the expected life of the business generated from the expenditure or 5 years which-ever 
is shorter.
15. Principal subsidiary undertakings
The principal subsidiary undertakings which operated during the year are listed below. They all operate in the country of their incorporation, which 
is Great Britain unless otherwise stated. They are all wholly owned unless there is a figure in brackets, which indicates the percentage of Ordinary 
Shares and voting rights held by the Group.
Company name Nature of business
Densitron Europe Limited Sale of electronic products in the UK and Europe
Parent company of European subsidiary undertakings
Densitron Corporation of Japan (incorporated in Japan) Sale of electronic products in Japan
Export of electronic products from Japan
Densitron Corporation (Incorporated in USA) Sale of electronic products in North and South America
Densitron France (incorporated in France)* Sale of electronic products in France
Densitron Nordic Oy (80%) (incorporated in Finland) * Sale of electronic products in Finland, Sweden and Eastern Europe
Densitron Deutschland GmbH (incorporated in Germany) * Sale of electronic products in Germany and Austria
Densitron Asia Limited (incorporated in Taiwan) Parent company of Taiwanese Investments and procurement of 
electronic products in Taiwan and China
Densitron Land Ltd Holder of land owned by the Group in Blackheath.
Densitron Display Taiwan Limited Procurement of electronic products in Taiwan and China
* Subsidiary of Densitron Europe Limited
Notes to the Consolidated Financial Statements 
For the year ended 31 December 2011 www.densitron.com Stock Code: DSN
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16. Financial assets
Deferred 
consideration
£000
Total financial 
assets
£000
Current
Balance at 1st January 2011 165 165
Cash receipts during the year (165) (165)
Additional royalty receivable 74 74
Balance at 31st December 2011 74 74
Deferred consideration on discontinued operations represents the amount of consideration due to be paid as a result of disposals of businesses in 
previous years. The amounts represent the amounts that are due to be paid in future periods, the directors have considered whether any impairment 
is required on these amounts based on available information and previous payment history and consider that no impairment to the amounts 
receivable is required.
17. Inventories
2011
£000
2010
£000
Finished goods 1,311 1,348
1,311 1,348
18. Trade and other receivables
2011
£000
2010
£000
Trade receivables 3,404 3,750
Prepayments and accrued income 357 520
Other receivables 912 646
4,673 4,916
The Group considers that the fair values of its’ trade and other receivables is not materially different from their carrying values.
 
The Group’s exposure to credit and currency risks relating to trade and other receivables is disclosed in note 23.
19. Trade and other payables — current
2011
£000
2010
£000
Trade payables 1,591 2,203
Other tax and social security 248 264
Other payables 170 462
Accruals 494 570
2,503 3,499
The Group considers that the fair value of its trade and other payables is not materially different from their carrying values.
The Group’s exposure to currency and liquidity risks related to trade and other payables is disclosed in note 23. Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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20. Loans and borrowing
This note provides information about the contractual terms of the Group’s interest-bearing loans and borrowings, which are measured at amortised 
cost. For more information about the Group’s exposure to interest rate and foreign currency risk see note 23.
2011
£000
2010
£000
Non-current liabilities
Secured bank loans 25 24
25 24
Current liabilities
Secured bank overdrafts 193 —
Current portion of secured bank loans 73 15
Letters of credit 1,184 1,312
Advances received from invoice discounters 244 919
1,694 2,246
21. Financial assets and liabilities
Maturity of financial assets
2011
£000
2010
£000
In less than one year 74 165
In more than one year but not more than two years — —
74 165
Maturity of financial liabilities
The carrying amounts of financial liabilities, all of which are exposed to cash flow or fair value interest rate risk are repayable as follows:
2011
£000
2010
£000
In less than one year 1,694 2,246
In more than one year but not more than two years 25 14
In more than two years but not more than three years — 10
In more than three years but not more than four years — —
In more than four years but not more than five years — —
1,719 2,270
22. Financial instruments — Risk management
The Group’s overall risk management programme seeks to minimise potential adverse effects on the Group’s financial performance.
The Group’s financial instruments comprise cash and liquid resources and various items such as trade payables and receivables that arise directly 
from its operations. The Group is exposed through its operations to the following risks:
 ❙ Credit risk
 ❙ Foreign currency risk
 ❙ Liquidity risk
 ❙ Interest rate risk
In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This note describes the Group’s 
objectives, policies and processes for managing those risks. Further quantitative information in respect of these risks is presented throughout these 
financial statements.
There have been no substantive changes in the Group’s exposure to financial instrument risks and consequently the objectives, policies and 
processes are unchanged from the previous period.
The Board has overall responsibility for the determination of the group’s risk management policies. The objective of the Board is to set policies that 
seek to reduce the risk as far as possible without unduly affecting the Group’s competitiveness and effectiveness. 
Further details of these policies are set out on the following page:
Notes to the Consolidated Financial Statements 
For the year ended 31 December 2011 www.densitron.com Stock Code: DSN
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22. Financial instruments — Risk management continued
Credit risk
The Group is exposed to credit risk primarily on its trade receivables, which are spread over a range of customers and countries, a factor that helps 
to dilute the concentration of the risk. 
It is Group policy, implemented locally, to assess the credit risk of each new customer before entering into binding contracts. Each Customer 
account is then reviewed on an ongoing basis (at least once a year) based on available information and payment history. In the UK and France credit 
insurance has also been implemented to further mitigate any risk. 
The maximum exposure to credit risk is represented by the carrying value in the balance sheet as shown in note 18. The amount of the total 
exposure shown in note 18 is stated net of provisions for doubtful debts.
The credit risk on the deferred consideration receivable as a result of the disposal of the Group’s trading divisions is limited to the value shown in 
note 16. 
The credit risk on liquid funds is limited as the funds are held at banks with high credit ratings assigned by international credit rating agencies.
Foreign currency risk
Foreign exchange transaction risk arises when individual Group operations enter into transactions denominated in a currency other than their 
functional currency. The general policy for the Group is to sell to customers in the same currency that goods are purchased in reducing the 
transactional risk. Along with the use of foreign currency bank accounts it is considered that the risk is mitigated although it is recognised that the 
risk is not wholly eliminated due to the different payment periods of suppliers and customers. Where transactions are not matched excess currency 
amounts generated from trading are used and the use of forward currency contracts are considered (during the year no forward currency contracts 
were used).
Foreign exchange translation risk arises on translation of the balance sheets of Group operations whose functional currency is different to that of the 
Group as a whole. The predominant area where this risk applies is US dollars. This risk is mitigated by hedging the balance of the balance sheet of 
those operations by borrowing in that currency in the UK.
Liquidity risk
It is the general policy of the Group that liquidity risk is managed locally. In some instances local facilities are tied in with Head Office and managed 
alongside those of the Head Office. The Group maintains banking facilities in the primary locations in which it operates in order to manage any cash 
requirement. In the UK invoice discounting is used on sales to Customers meaning that the UK business can receive immediate payment on its 
sales. Additionally the use of Letters of Credit to make purchases from the Far East enables the UK to manage its purchases more effectively.
The Group has approximately a three month visibility in its trading and runs a rolling 3 month cash flow forecast. If any part of the Group identifies a 
shortfall in its future cash position the Group has sufficient facilities that it can direct funds to the location where they are required. If this situation is 
forecast to continue into the future remedial action is taken. 
Interest rate risk
The Group is exposed to interest rate risk as it generally borrows funds at floating interest rates. This exposes the Group to fluctuations in interest 
rates. All borrowings require Board approval and while this doesn’t mitigate the risk it ensures that the Board controls the level of borrowing 
undertaken by the Group and the rate at which funds are borrowed at. The Board maintains a close relationship with its lenders to ensure that the 
financial instruments entered into and the margin charged by them are the most appropriate for the business and at the most competitive rates 
achievable. Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
40
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23. Financial instruments
Credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:
Cash and receivables
2011
£000
2010
£000
Trade and other receivables 4,673 4,916
Other financial assets — current 74 165
Cash and cash equivalents 1,809 6,002
6,556 11,083
The maximum exposure to credit risk for trade receivables at the reporting date by geographic region was:
Carrying value
2011
£000
2010
£000
UK 1,424 1,689
France 136 477
Finland 37 52
Germany 547 537
US 850 695
Japan 339 288
Taiwan 71 12
3,404 3,750
The following table shows an analysis of trade and other receivables.
2011
£000
2011
%
2010
£000
2010
%
Current 2,406 51.49 3,260 66.31
0—30 days 1,161 24.84 722 14.69
31—60 days 595 12.73 578 11.76
61—90 days 78 1.67 289 5.88
91—120 days 138 2.95 22 0.45
Over 120 days 295 6.32 45 0.91
4,673 100.00% 4,916 100.00
In line with the Group’s past trading and bad debt exposure experience a policy has been adopted to make a provision of 50% against those debts 
that are more than 90 days overdue. Any debts still outstanding after 120 days are fully provided against. Where there has been an agreement with a 
customer for credit terms to be extended and those terms are being adhered to no provision is made. During the year the value of provisions made 
in respect of bad and doubtful debts was less than £30,000 (2010: £24,000) which represented less than 0.13% of turnover (2010: 0.12%).
The Group is exposed to credit risk on the deferred consideration receivable on the business disposals that have been made. While the Group 
considers that these amounts will be received there is a potential exposure.
Notes to the Consolidated Financial Statements 
For the year ended 31 December 2011 www.densitron.com Stock Code: DSN
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23. Financial instruments continued
Liquidity risk
Financial liabilities 
2011
£000
2010
£000
Current financial liabilities
Trade and other payables 2,503 3,499
Loans and borrowings 1,694 2,246
4,197 5,745
Non current financial liabilities
Loans and borrowings 25 24
The Board considers that the book value of its financial assets and liabilities approximate to their realisable values.
The following are maturities of financial liabilities, including estimated contracted interest payments
Carrying
amount
£000
Contractual
Cash flows
£000
6 months
or less
£000
6—12
months
£000
1—2
years
£000
2—5
years
£000
2011
Secured bank loans 98 98 37 36 25 —
Bank overdrafts 193 193 193 — — —
Letters of credit 1,184 1,184 1,184 — — —
Advances received from Invoice Discounters 244 244 244 — — —
Trade and other payables 2,503 2,503 2,503 — — —
4,222 4,222 4,161 36 25 —
Carrying
Amount
£000
Contractual
Cash flows
£000
6 months
or less
£000
6—12
months
£000
1—2
years
£000
6—12
months
£000
2010
Secured bank loans 39 39 7 8 14 10
Bank overdrafts — — — — — —
Letters of credit 1,312 1,312 1,312 — — —
Advances received from Invoice Discounters 919 919 919 — — —
Trade and other payables 3,499 3,499 3,499 — — —
5,769 5,769 5,737 8 14 10 Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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23. Financial instruments continued
Interest rate risk
The Group finances its business through a mixture of bank overdrafts, bank and other loans, letter of credit and invoice discounting facilities. During 
the year the Group utilised these facilities at floating rates of interest. The table below shows the Group’s financial instruments that are exposed to 
interest rate risk at 31st December 2011.
Currency
2011
Effective 
interest 
rate
2011
Carrying 
amount
£000
2010
Effective 
interest 
rate
2010
Carrying 
amount
£000
Floating rate with maturity within one year
Bank overdraft facility – UK UKS 4.70% 193 5.50% —
Invoice discounting facility – UK UKS 3.25% 60 3.25% 274
Invoice discounting facility – UK USD 3.25% 184 3.25% 645
Letter of credit facility – UK USD 0.86% 1,184 0.54% 1,312
1,621 2,231
Floating rate with maturity between one and two years
Secured bank loan – USA USD 4.00% 98 4.20% 39
98 39
The Group is not particularly sensitive to increases in interest rates as it has the ability to utilise available funds to restrict the level of borrowings but if 
interest rates were to increase by 100 basis points the effect on the average borrowings of Group would be an increase in annual interest payments 
of approximately £17,000 (2010: £20,000).
In the UK Barclays Bank PLC holds a debenture over the assets of the UK companies in order to secure overdraft, letter of credit, guarantee and 
invoice discounting facilities.
In the USA the bank loan is secured against the assets of the US subsidiary.
Foreign currency risk
The Group’s main foreign currency risk is the short term risk associated with accounts receivable and payable denominated in currencies that are 
not subsidiaries functional currency. The risk arises on the difference in the exchange rate between the time invoices are raised/received and the time 
invoices are settled/paid. For sales denominated in foreign currencies the Group will try and ensure that the purchases associated with the sale will 
be in the same currency. The following table shows the net liabilities exposed to exchange rate risk that the Group has at 31st December 2011.
2011
£000
2010
£000
UK Sterling — —
US dollars 1,630 1,900
Japanese Yen 9 83
Taiwanese Dollars — —
Euro 25 58
1,664 2,041
The effect of a strengthening/weakening of 10% of currencies against sterling at the Balance Sheet date on the foreign currency balances carried 
at that date would have resulted in an estimated net decrease/increase in pre-tax profit for the year and an decrease/increase in net assets of 
approximately £144,000 and £362,000 respectively (2010: £47,000 and £403,000 respectively).
Notes to the Consolidated Financial Statements 
For the year ended 31 December 2011 www.densitron.com Stock Code: DSN
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23. Financial instruments continued
Capital under management
The Group considers its capital to comprise its ordinary share capital, share premium account, translation reserve and accumulated retained 
earnings.
In managing its capital, the Group’s primary objective is to maximise returns for its equity shareholders. The Group seeks to maintain a gearing 
ratio that balances risks and returns at an acceptable level and also to maintain sufficient funding to enable the Group to meet its working capital 
and strategic investment need. In making decisions to adjust its capital structure to achieve these aims the Group considers not only its short term 
position but also its long term operational and strategic objectives.
The Group’s gearing ratio at 31st December 2011 is shown below:
2011
£000
2010
£000
Bank overdrafts 193 —
Bank loans 98 39
Letters of credit 1,184 1,312
Invoice discounting advance 244 919
Finance lease liabilities — —
1,719 2,270
Share Capital 697 3,483
Retained earnings 2,907 3,082
Special reserve 107 117
Available for sale reserve — —
Revaluation reserve 450 450
Translation reserve 223 171
4,384 7,303
Gearing ratio 39.21% 31.08%
24. Provisions
Post 
retirement 
benefits
£000
Property 
dilapidations
£000
Other
£000
Total
£000
At 1st January 2011 117 25 9 151
Profit and loss account movement (10) (25) 135 100
At 31st December 2011 107 — 144 251
The provisions that the Company has are:
 ❙ Post retirement benefits relates to payments being made to former employees of the Company. The provision is not considered to be material 
and the benefit will not be offered to any further employees, consequently IAS19 disclosures have not been given.
 ❙ Property dilapidations relate to provisions being made for the cost of returning the premises that the Company occupies to the condition that 
they were in when they were first occupied in accordance with the provisions of the lease.
 ❙ Other relates to certain other provisions that the Group has made in respect of present obligations to make future payments, including £125,000  
in respect of legal costs to defend the Group against a claim (see note 30).
2011
£000
2010
£000
Current liabilities 134 34
Non current liabilities 117 117
251 151 Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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25. Deferred taxation
2011 2010
Asset
£000
Liability
£000
Asset
£000
Liability
£000
At 1st January 2011 41 (141) 47 —
Exchange adjustment — — — (3)
Income statement 7 97 (6) (138)
At 31st December 2011 48 (44) 41 (141)
Details of the deferred tax asset and amounts charged to the consolidated income statement are as follows:
Balance
2011
£000
(Charged)/
credited 
to income 
statement
2011
£000
Balance
2010
£000
(Charged)/
credited 
to income 
statement
2010
£000
Asset
Employee compensation related items 10 4 6 (5)
Inventory allowance 6 (11) 17 2
Receivables allowance 32 14 18 (3)
48 7 41 (6)
Liabilities
Exchange gains — 129 (129) (129)
Other differences (44) (32) (12) (9)
(44) 97 (141) (138)
The Group has not provided deferred tax on losses or capital allowances where the timescale for recovery is uncertain.
2011
£000
2010
£000
Unused tax losses 840 1,081
Capital allowances 170 190
1,010 1,271
26. Called up share capital
2011
Number
2010
Number
Authorised: Ordinary shares of 1p (2010 5p) each
At 1st January 2011 and 31st December 2011 140,000,000 140,000,000
Issued: Ordinary shares of 1p (2010 5p each)
At 1st January 2011 and at 31st December 2011 69,669,106 69,669,106
On 26th May 2011, following High Court approval, the Company repaid 4p per share to shareholders reducing the nominal value of the shares to 1p 
per share. The reduction in the value of the share capital is disclosed in the statement of changes in shareholders’ equity.
On 23rd October 2008 the Company purchased 500,000 Ordinary shares of 5p each for 5p per share. These shares are being held in Treasury by 
the Company.
Notes to the Consolidated Financial Statements 
For the year ended 31 December 2011 www.densitron.com Stock Code: DSN
Our Governance
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27. Reserves
The following describes the nature and purpose of each reserve within owners’ equity.
Share Capital
Amount subscribed for share capital at nominal value.
Translation reserve
The translation reserve comprises all currency differences arising from the translation of the financial statements of foreign operations.
Special reserve
Following the cancellation of its share premium account the Company is required to set aside that amount of the share premium account totalling the 
value of creditors in existence at that time until those creditors are repaid.
Revaluation reserve
The revaluation reserve comprises the surplus on revaluation of land that is owned by the Group. When revalued land is sold the revaluation reserve 
that relates to it is transferred directly to retained earnings.
Retained earnings
Cumulative net gains and losses recognised in the consolidated income statement.
Non-controlling interests
The non-controlling interests relate to a minority shareholding in the Group’s subsidiary in Finland.
28. Leases
Operating leases
The Group leases various offices, warehouses and equipment under non-cancellable operating lease agreements. The leases have varying terms 
and renewal rights.
2011
£000
2010
£000
Future minimum rentals payable under non-cancellable operating leases expiring:
Within one year — 61
Between one and five years 369 199
369 260
29. Related party transactions
Transactions with Evervision Electronics Co. Limited
In the ordinary course of business the Group has entered into transactions with Evervision Electronics Limited, a company in which the Group 
previously owned 24.48% of the ordinary share capital until it disposed of its shareholding during 2010. 
The related party transactions and resulting balances required for disclosure for the year ended 31st December 2011 are summarised as follows:
2011
£000
2010
£000
Sales — —
Purchases — 911
Amounts owed by Evervision Electronics Co. Ltd — —
Amounts owed to Evervision Electronics Co. Ltd — — Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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30. Contingent liabilities
The Group is a defendant in a claim involving a property in which it is alleged that the Group is the legal tenant. The management of the Group has 
taken legal advice and based on this advice is vigorously defending its position. While the directors are confident of the Group’s position, should the 
matter go to court the outcome is uncertain and the Group may be required to make a settlement. 
The claim against the Group relates to a building occupied by Densitron Ferrograph Limited, a former subsidiary of the Group, that was disposed of 
in 2006. The claim against the Group is approximately £300,000 in unpaid back rent. If the action were to succeed there would also be a liability for 
unpaid past business rates of approximately £70,000. The lease of the premises runs until 2023 and contains provisions for rent reviews in 2013 and 
2018 and an outstanding rent review in 2008. The annual rent on the premises is currently £167,000 and the annual business rates on the premises 
are currently £60,000. The premises are at present unoccupied.
31. Notes supporting the cash flow statement
Cash and cash equivalents for the purposes of the cash flow statement comprises:
2011
£000
2010
£000
Cash at bank and in hand 1,809 6,002
Bank overdrafts (193) —
1,616 6,002
Notes to the Consolidated Financial Statements 
For the year ended 31 December 2011 www.densitron.com Stock Code: DSN
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Our Financials Our Business
Note
2011
£000
2010
£000
Fixed assets
Tangible assets 34 19 23
Investments 35 8,814 7,873
8,833 7,896
Current assets
Debtors – due within one year 36 421 584
Cash at bank and in hand 163 3,168
584 3,752
Creditors: amounts falling due within one year 37 (3,583) (2,693)
Net (liabilities)/assets (2,999) 1,059
Total assets less current liabilities 5,834 8,955
Provisions for liabilities 38 (223) (108)
Net assets 5,611 8,847
Capital and reserves
Called up share capital 39 697 3,483
Revaluation reserve 40 117 117
Special reserve 40 107 117
Profit and loss account 40 4,690 5,130
Total equity shareholders’ funds 5,611 8,847
The accounts were approved by the Board and authorised for issue on 10th May 2012 and signed on its behalf by:
Jan G Holmstrom
Chairman
Company Balance Sheet
At 31 December 2011 Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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32. Principal Accounting Policies
Basis of accounting
The financial statements of the parent company, Densitron Technologies plc have been prepared in accordance with United Kingdom generally 
accepted accounting standards.
Transactions with wholly owned subsidiaries
The Company has taken advantage of the exemption under FRS 8 and has not disclosed transactions with subsidiaries wholly owned by the Group.
Foreign currencies
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in 
foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.
Tangible fixed assets
(a) Tangible fixed assets are stated at cost net of depreciation and any provision for impairment. 
(b) Depreciation is calculated to write off the cost of all tangible fixed assets by equal instalments over their expected useful lives. Where there 
is evidence of impairment, fixed assets are written down to their recoverable amount. Any such write down is charged to the profit and loss 
account. No depreciation is provided on freehold land. The other assets are depreciated at the following rates per annum:
 Freehold buildings 5%  
Fixtures and fittings 20% 
Computers and software 20%
(c) Tangible fixed assets acquired under hire purchase agreements or held under finance leases which give rights equivalent to ownership are 
capitalised and depreciated in accordance with the Group’s depreciation policy. Leasing and hire purchase payments comprise interest and 
capital elements. Interest is charged to revenue and the capital element of future leases and hire purchase payments is included in creditors.
(d) Rental payments under operating leases are expensed on a straight line basis over the period of the lease.
Investments
Investments in subsidiaries are held at a directors’ valuation. 
Current taxation
Current taxation, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and 
laws that have been enacted or substantively enacted by the balance sheet date.
Deferred taxation
Deferred tax is provided, except as noted below, on timing differences that have arisen but not reversed by the balance sheet date, where the timing 
differences result in the obligation to pay more tax, or a right to pay less tax, in the future. Timing differences arise because of differences between 
the treatment of certain items for accounting or tax purposes.
In accordance with FRS 19 deferred tax is not provided on timing differences arising from:
(a) revaluation gains on land and buildings, unless there is a binding agreement to sell them at the balance sheet date; and
(b) gains on the sale on non-monetary assets, where on the basis of all available evidence it is more likely than not that the taxable gain will be 
rolled over into replacement assets.
Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered.
Deferred tax is measured at the tax rates that are expected to apply in the periods when the timing differences are expected to reverse, based on tax 
rates and laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and liabilities are not discounted.
Where gains and losses are to be recognised in the statement of total recognised gains and losses, the related taxation is also taken directly to the 
statement of total recognised gains and losses.
Pensions
The Company does not operate its own pension scheme. Payments are made to defined contribution retirement benefit schemes and are charged 
as an expense as they fall due.
Notes to the Company accounts
For the year ended 31 December 2011 www.densitron.com Stock Code: DSN
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33. Profit of the parent company
As permitted under Section 408 of the Companies Act 2006, the Income Statement of the Company is not presented as part of these financial 
statements.
The loss dealt with in the Company accounts was £470,000 (2010: profit £374,000). 
34. Tangible fixed assets
Freehold 
land and 
buildings
£000
Fixtures and 
fittings
£000
Total
£000
At cost
At 1st January 2011 30 67 97
Additions — — —
Disposals — (57) (57)
At 31st December 2011 30 10 40
Depreciation
At 1st January 2011 14 60 74
Disposals — (57) (57)
Charge for the year 2 2 4
At 31st December 2011 16 5 21
Net book value
At 31st December 2011 14 5 19
At 31st December 2010 16 7 23
35. Fixed asset investments
Subsidiary 
undertakings
£000
Shares at cost or valuation of subsidiary
At 1st January 2011 10,696
Additions 941
At 31st December 2011 11,637
Provisions
At 1st January 2011 and 31st December 2011 2,823
Net book value
At 31st December 2011 8,814
At 31st December 2010 7,873
During the year the Company acquired 100% of the share capital of Densitron Display Taiwan Limited from Densitron Asia Limited for a consideration 
of NT$43 million. 
The principal subsidiaries are set out in Note 14. The investments in subsidiary undertakings were revalued in May 1986 by the Directors based 
on net asset values. If the investments had not been revalued the relevant fixed asset category would have been included in the accounts at the 
following amounts:
Subsidiary 
undertakings
£000
Cost 10,087
Provisions 2,215
At 31st December 2011 7,872
At 31st December 2010 7,872 Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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36. Debtors
2011
£000
2010
£000
Due within one year
Amounts owed by subsidiaries 182 324
Other debtors 184 222
Prepayments and accrued income 55 38
421 584
37. Creditors: amounts falling due within one year
2011
£000
2010
£000
Bank loans and overdrafts 193 —
Trade creditors 48 60
Amounts owed to subsidiary undertakings 3,195 2,407
Other creditors 44 46
Accruals and deferred income 103 180
3,583 2,693
38. Provisions for liabilities
Legal costs
Post 
retirement 
benefits
£000
Total
£000
As at 1st January 2011 — 108 108
Charged in the year 125 (10) 115
As at 31st December 2011 125 98 223
The provision for legal costs relate to the costs expected to be incurred in the defense of an action against the Company in respect of the lease of a 
property in Newcastle. Further details of the claim are in note 30.
The provision for post retirement benefits relates to payments to former employees of the company. FRS 17 Defined Benefit disclosures have not 
been given on grounds of materiality.
39. Called up share capital
2011
Number
2010
Number
Authorised: Ordinary shares of 1p each (2010: 5p each)
At 1st January 2011 and 31st December 2011 140,000,000 140,000,000
Issued: Ordinary shares of 1p each (2010: 5p each)
At 1st January 2011 and 31st December 2011 69,669,106 69,669,106
On 26th May 2011, following High Court approval, the Company repaid 4p per share to shareholders reducing the nominal value of the shares to 1p 
per share.
On 23rd October 2008 the Company purchased 500,000 Ordinary shares of 5p each for 5p per share. These shares are being held in Treasury by 
the Company.
Notes to the Company accounts
For the year ended 31 December 2011 www.densitron.com Stock Code: DSN
Our Governance
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40. Reconciliation of movement in shareholders funds
Share Capital
£000
Revaluation 
reserve
£000
Special 
reserve
£000
Retained 
earnings
£000
Total
£000
Balance at 1st January 2010 3,483 117 183 4,690 8,473
Total recognised income and expense — — — 374 374
Transfer from special reserve — — (66) 66 —
Balance at 31st December 2010 3,483 117 117 5,130 8,847
Balance at 1st January 2011 3,483 117 117 5,130 8,847
Total recognised income and expense — — — (470) (470)
Capital reduction (2,786) — — 20 (2,766)
Transfer from special reserve — — (10) 10 —
Balance at 31st December 2011 697 117 107 4,690 5,611
Following the cancellation of its share premium account the Company is required to set aside that amount of the share premium account totalling the 
value of creditors in existence at that time until those creditors are repaid.
41. Employee information
The average number of employees (including directors) during the year was as follows:
2011
Number
2010
Number
Administration 7 7
Staff costs for the above employees during the year amounted to
2011
£000
2010
£000
Wages and salaries 296 323
Social security costs 27 37
Pension costs 15 13
338 373
2011
£000
2010
£000
Directors’ remuneration
Salaries and fees 391 524
Amounts paid to third parties 33 30
Defined contribution pension payments 51 32
475 586
The emoluments of the highest paid director 166 190
The number of directors receiving defined contribution pension payments are: 3 3
Two of the executive directors are directly employed by subsidiaries of Densitron Technologies plc.
Amounts paid to third parties are in respect of the services of Mr J Holmstrom provided by Bronsstädet AB. Densitron Technologies plc 
Annual Report and Accounts for the year ended 31 December 2011
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42. Leases
2011
£000
2010
£000
Annual operating lease commitment
Land and buildings expiring within one year — —
Land and buildings expiring after more than one year 60 60
60 60
43. Contingent liabilities and guarantees
The Company is a defendant in a legal action involving a property in which it is alleged that the Company is the legal tenant. Full details of the claim 
are in Note 30.
At 31st December 2011 the Company had guaranteed:
 ❙ the bank facilities of its UK subsidiary undertakings. The overdraft amounted to £193,000 at 31st December 2011 (2010: £Nil). These facilities 
are secured by a fixed and floating charge with cross guarantee over the assets of the Group; and
 ❙ deferred vat liabilities in favour of HM Revenue and Customs up to £10,000 (2010: £10,000).
Notes to the Company accounts
For the year ended 31 December 2011 21417.04       10/05/12        Proof 6
www.densitron.com Stock Code: DSN 21417.04       10/05/12        Proof 6
Densitron Technologies plc
4th Floor
72 Cannon Street
London
EC4N 6AE
T +44 (0) 20 7648 4200
F +44 (0) 20 7648 4201
E sales@densitron.co.uk
www.densitron.com