Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2008
Metals & Minerals
Base metals and precious metals
energy
Oil, petroleum, natural gas, carbon, electricity
softs
Coffee, cocoa, sugar, cotton, orange juice CONTENTS
financial and operational Highlights 1
Directors’ Biographies 2
Chairman’s statement 3
Chief executive’s review 4
financial review 6
report of the Directors 7
Corporate governance 10
remuneration report 12
report of the independent auditor 14
Consolidated income statement 15
Consolidated Balance sheet 16
Company Balance sheet 17
Consolidated statement of Changes 
in equity 18
Company statement of Changes 
in equity 19
Consolidated Cash flow statement 20
Company Cash flow statement 21
notes to the financial statements 22
notice of annual general Meeting 50
form of Proxy 51 FINANCIAL HIGHLIGHTS
group revenues increased by 8% to £6.2 million, which included £2.2 
million of recurring maintenance revenues. 
operating profit increased by 117% to £0.7 million. Profit before 
taxation increased by 63% to £1.0 million, demonstrating tangible 
success of the recent reorganisation programme and investment in 
building the Group’s sales teams.
Basic earnings per share have increased by 50% to 2.73 pence. 
Cash resources at the end of the year were £7.8 million, an increase 
of £1.8 million on last year’s £6.0 million, contributing to a very strong 
balance sheet. 
Dividend, proposed final dividend increased by 9%.
 
OPERATIONAL HIGHLIGHTS
nine significant new Trinity licence deals were signed in 2008, 
compared to three in 2007.
four new Trinity clients have gone live.
Revenues (£m)
6.2
5.7
4.6
2.4
 05 
06 
07 
08
Cash Resources (£m)
7.8
6.0
4.9
3.6
 05 
06 
07 
08
 
Brady plc Consolidated Financial Statements 1 DIRECTORS’ BIOGRAPHIES DIRECTORS’ BIOGRAPHIES
Non-Executive Directors
Paul fullagar, Ba, aCMa, 58, non-executive Chairman
Paul joined the Board in July 2007 as Non-Executive Chairman. Having worked in the software sector for 19 years, Paul brings considerable experience 
and a successful track record of overseeing substantial growth in publicly quoted software businesses. Paul was also recently Chairman of Financial 
Objects plc, until successfully sold to Temenos in 2008 and was previously Chairman of Staffware plc for 12 years, during which time he led the 
company through a substantial growth period and subsequent successful flotation. Paul is a Chartered Management Accountant.
Peter Harverson, 62, senior non-executive Director
Peter joined the Board in January 2007. He has held a number of senior international sales and marketing roles in the IT industry. These included 
Regional Director, Intel Corporation and Vice President Europe, Cadence Design Systems. In 1995 he joined Sun Microsystems where he was responsible 
for the development of the company’s European Corporate Accounts programme. More latterly he became Director of Services Sales, EMEA with the 
charter to develop new areas of business, including professional services. Peter retired from Sun Microsystems in December 2005. He is also Chairman 
of Aspex Semiconductor Ltd, a non-executive director of Ubisense Ltd and Cambridge RF Systems Limited, and an adviser to Pulsic Ltd.
geoffrey Bicknell, fCa, Ca (ontario), 66, non-executive Director
Geoffrey joined the Board in January 2008. He has an impressive track record having held executive directorships in a number of companies both in 
Europe and the USA including Rockwell International, TI Group Plc, Lucas Industries, Maxima Holdings Plc and Northgate Information Solutions Plc. He 
is also a non-executive director for Trafficmaster plc and TDG Limited, a logistics company, and senior advisor to LIT plc.
Patrick Brazel, Msc, 51, non-executive Director
Patrick joined the Board in January 2008. He has many years’ experience at Chief Executive Officer and senior management levels in the banking, 
financial trading and technology markets. He has acted as Chief Executive Officer and Chairman at a number of companies and spent almost a decade 
at SunGard, latterly as President of SunGard Capital Markets. He has subsequently been instrumental in the development and progress of companies 
such as Sentry Financial Technology LLC, Eontec Ltd and GoldTier Technology LLC. He is also Chairman of the Irish Software Association.
Executive Directors
gavin lavelle, Bsc, 49, Chief executive officer
Gavin joined the Group in September 2007 following a career spanning more than 25 years in the international financial software and banking 
industry. In 2000 he joined SunGard after the acquisition of RioFin as Chief Executive Officer of Panorama and more recently Chief Executive Officer of 
SunGard Sherwood Systems. Prior to founding RioFin, he was worldwide head of equities and equity derivatives risk management at Deutsche Bank. 
He also worked at Banque Paribas for eight years, where he was head of equity derivatives trading.
robert Brady, PhD, 53, Chief t echnology officer
After obtaining his PhD in Physics from Cambridge University, Robert initially pursued his career in academia, including spending time working for the 
National Bureau of Standards in Boulder, Colorado supported by the US Office of National Research. He founded the Group in 1985, to build derivatives 
pricing models and risk management systems for the financial and commodity markets.
Brian Collins, 43, Product Management Director
Brian joined the Group in June 2004 following the acquisition of Colplan Systems Limited. Having studied Computer Sciences at Birmingham University, 
Brian was one of the founding directors of Colplan Systems Limited in 1987 and became Managing Director in 2001. Brian has over twenty years 
experience developing and supplying commodity derivative pricing and risk analysis tools, specialising in the base metals and power markets.
tony ratcliffe Bsc, aCa, MBa, 45, finance Director
Tony joined the Group in May 2007. After training with KPMG, Tony has spent his career in the financial management of fast growth technology 
companies, both public and private. His recent roles have included Chief Financial Officer of Gemini Genomics plc where he led a major acquisition and 
a $450m Nasdaq IPO and Finance Director of i2 Limited, a global law enforcement software company, where he oversaw significant growth and led the 
merger of the business with Choicepoint, Inc. realising over $100m in cash for its shareholders.
Brady plc Consolidated Financial Statements 2 CHAIRMAN’S STATEMENT
overview
The Group’s principal activity is the global provision of 
trading, risk management and settlement solutions to 
the metals and commodities sectors, through the delivery 
of customer focused software and services. The Group 
addresses the requirements of the metals markets, both 
base and precious, and the soft commodities markets.
I am pleased to provide a brief summary of the financial 
and operational highlights for 2008 and to provide an 
outlook for 2009.
financial Highlights
• Group revenues increased by 8% to £6.2 million (2007: 
£5.7 million), which included £2.2 million of recurring 
maintenance revenues (2007: £1.6 million). 
• Operating profit increased by 117% to £0.7million (2007: 
£0.3 million). Profit before taxation increased by 63% to 
£1.0 million (2007: £0.6 million), demonstrating tangible 
success of the recent reorganisation programme and 
investment in building the Group’s sales teams.
• Basic earnings per share have increased by 50% to 2.73 
pence (2007: 1.82 pence). On a fully diluted basis this 
equates to an increase of 52% to 2.49 pence (2007: 1.64 
pence). 
• Cash resources at the end of the year were £7.8 million, 
an increase of £1.6 million on last year’s £6.0 million, 
contributing to a very strong balance sheet. 
• 36% growth in recurring maintenance revenues, now 
comprising 35% of total revenues. 
•  Four new Trinity clients have gone live.
operational Highlights
2008 has seen a number of successful commercial 
activities:
• Nine significant new Trinity licence deals were signed in 
2008, compared to three in 2007.
• Four new Trinity clients have gone live.
The Group reorganised its internal resources at the end of 
2007 in order to focus its efforts aggressively towards sales 
order and revenue generation. The organisational changes 
have been successfully implemented, as demonstrated in 
the operational and financial highlights above. The Group 
is also encouraged to see a more advanced pipeline 
which, in monetary terms, has more than doubled in 
the last twelve months. The Group is well positioned to 
continue to accelerate growth in its order book and now 
has six quota carrying account managers, compared to 
two that were in place prior to the reorganisation. The 
Group has also successfully established a US-based service 
team in 2008 and commenced its expansion into Asia in 
January 2009.
The Group completed the acquisition of Commodities 
Software (UK) Limited (”Comsoft”) in January 2009, 
providing an attractive opportunity to help accelerate 
further growth.
outlook
The metals and commodities markets have been the 
subject to much attention during 2008 given the dramatic 
price increases in recent years and subsequent reductions in 
recent months. There continue to be more entrants to the 
London Metal Exchange (“LME”), which is a core market 
for the Group. Overall, the increase in activity in this area 
still appears to be strong for the coming years, particularly 
relative to other asset classes and in consideration of 
the general global credit crunch. Although the Board is 
mindful of potential delays in clients’ decision making in 
relation to new licence deals, it believes that the Group is 
well positioned in this marketplace.
The Group expects to continue to build its sales opportunity 
pipeline and to translate this into the execution of new 
licence contracts. In addition, the Group anticipates 
completing a number of implementations in 2009 in 
relation to the licence contracts secured in 2008. The 
Board therefore has good visibility of revenues in the first 
half of 2009 visibility of revenues in the first half of 2009.
People
I would like to thank all of our employees for their efforts 
during the past busy year in delivering this successful 
growth. Their continued commitment, loyalty and support 
will be vital to maintain the momentum of this progress. 
Conclusion
The Board continues to see a substantial and attractive 
market opportunity, in spite of the general economic 
conditions. The Group has a world leading position 
within the metals and mining sector and is well placed to 
continue to build on this. It has a strong product offering 
addressing the requirement to manage trading risk in the 
metals and mining sectors, a solid balance sheet and has 
built a quality customer base and excellent reputation 
over the years. 
The Group has a clear strategy which is being executed, 
as summarised in the Chief Executive’s Review. The 
year has demonstrated tangible success following the 
reorganisation initiatives in 2007 and the investment in 
routes to market. The Board believes that the Group is 
well placed to aggressively capitalise on this excellent 
opportunity and build on the growth achieved in 
2008. In addition, the Group will continue to look for 
further opportunities to use its strong balance sheet to 
enhance its product and customer base through selective 
acquisitions.
I look forward to reporting further positive progress.
Paul fullagar
Chairman
10 March 2009
Brady plc Consolidated Financial Statements 3
“With Brady’s 
world leading 
position within 
the metals 
and mining 
sector and a 
strong product 
offering 
addressing 
trading 
and risk 
management 
within the 
metals and 
mining sectors, 
the Board 
believes 
Brady is well 
positioned in 
the current 
climate to 
build its sales 
opportunities.” CHIEF EXECUTIVE’S REVIEW
our Markets
The Group is focused on the metals, both base and precious, 
and the soft commodities markets. In each area we believe that 
the trading conditions remain buoyant and anticipate that they 
should remain so for the foreseeable future. The credit crunch 
and deterioration in the equity markets has emphasised the 
need for effective risk management solutions and controls.
Furthermore, we have seen an increase in electronic trading, 
especially in the LME, which has seen the growth in LME 
Select transactions, which is driving the need for new systems. 
The introduction of the new LME SMART settlement system in 
2009 is also providing a catalyst for change.
Overall, we expect that the demand in our markets should 
remain positive, although it should be recognised that the 
recession will likely cause general delays in the decision-making 
processes in some organisations.
our strategy
The Group’ s target markets are producers and fabricators, trading 
companies, and banks, brokers and hedge funds. For metals, our 
solutions offer coverage across the entire industry, from metal 
concentrates, through refined metals trading, to the most complex 
financial derivatives. For soft commodities, our solutions can 
process the full range of financially settled instruments, including 
complex OTC structures prevalent in that industry, to allow full 
analysis of trading risk.
Approximately 50% of our revenues derive from Europe, 
40% from North America and the remainder from Asia. The 
Group has strengthened its presence in continental Europe 
and the Americas during 2008, including establishing a service 
organisation in North America. As previously indicated, the 
Group has more recently, in January 2009, established local 
operations in Asia in order to better support strategically 
important Asian and global clients.
Approximately 35% of our revenue derives from producers and 
fabricators, 30% from trading companies and 35% from banks 
and brokers. These markets are largely addressed by direct 
selling, but we will be looking to further develop relationships 
with partners, integrators and value added resellers (VARs) in 
2009.
The Group’s solutions provide support for traders, operations, 
settlements, risk and compliance in an integrated environment. 
This is critically important to ensure a greater control of clients’ 
business, lowering cost of ownership and minimising the 
possibilities of operational risk. 
Given the strength of its balance sheet, the Group continues to 
work with our advisors in driving and executing our acquisition 
strategy. We anticipate that the continuing turbulence in 
the credit markets and recessionary climate should favour 
companies such as Brady who are well placed to identify and 
execute acquisitions at valuations very attractive to them.
our operations
organisation
Following the reorganisation in late 2007, the team has 
been  significantly strengthened and focused in order to take 
advantage of the positive trading conditions. There are now 
six quota carrying sales executives, compared to two prior to 
the reorganisation, and there are also plans to hire at least one 
further sales executive in 2009.
The Group has a clear focus on North 
America, Europe, and now Asia for 
both sales and services, providing higher 
quality services to our clients in their 
own time zones.
The Group’s overall capability has also been augmented by the 
introduction of enhanced product management processes and 
much tighter co-ordination between our development centres.
Marketing
Progress continues to be made in strengthening the Brady 
brand, including significantly more focus applied to marketing 
our products as well as press and analyst briefings, advertising, 
trade shows, marketing literature and client testimonials. This 
is continuing to translate into more incoming requests for 
information which we anticipate will ultimately create more 
leads in 2009.
sales
The refinements that we have made to the value proposition 
and efforts in implementing targeted sales campaigns have 
shown tangible results in 2008, having led to nine significant 
new licence sales in 2008, all with leading organisations. This 
will be further enhanced by direct marketing sales campaigns 
in 2009.
We also plan to further expand our sales reach by working with 
third-party integrators and technology partners.
Products
In a busy year for product development, our product portfolio has 
continued to evolve in line with the needs of our customers.
For banks, brokers and traders there have been a number 
of significant developments to match the functionality of 
our applications with the latest process and regulatory 
changes brought in by the London Metal Exchange, such as 
management of steel contracts, LME matching and an LME 
SMART interface to enable direct links to other regulatory and 
exchange organisations. We will continue to strengthen our 
partnership with the LME as a key part of our strategy.
“t his has been an exciting year for Brady. since we 
announced our new growth strategy we have made great 
strides in growing the company”
Brady plc Consolidated Financial Statements 4 We are witnessing substantial growth in the trading of metal 
concentrates across the globe. For producers, the Group has 
completed the development of a new Concentrates module, 
which means that our solutions can now be used to man-
age both refined and unrefined material. This was further 
augmented in 2008 with the addition of Assaying, Tolling and 
Transportation functionality to further extend the Group’s cov-
erage in this market sector. The depth of functionality and our 
customer base was further enhanced following the acquisition 
of Comsoft in January 2009, as noted below.
We see the capture and effective analysis of trading risk as a 
critical component in the volatile and fast-moving commodities 
markets that we service:
•  the Group’s Value-at-Risk (“VaR”) module targets the 
continued acceptance within the industry of VaR models 
to report enterprise risks;
•  the Group’s P&L Attribution module provides extensive 
analysis of P&L movements relative to changes in market 
data, minimising operation down-time; and
•  the recently released Retrospective functionality offers a 
powerful forensic analysis tool through the reconstruction 
of any position back in time.
The message hub has also been completed and this lays the 
foundation for high performance messaging between our own 
components and third party applications, using FIX protocol. 
This is a key component of the Group’s evolution to a service-
orientated architecture and provides immediate benefits of 
increased scalability, lower cost of ownership and reduced 
operational risk through accurate high-performance data 
interfaces, opening the Group’s solutions to order management 
and exchange connectivity.
From a technology perspective, the Group anticipates staying at 
the forefront of Microsoft and Oracle technology by deepening 
its use of .NET components and adoption of the Vista operating 
system. Oracle 11g and Oracle Standard will be rolled-out and as 
will the use of Service Orientated Architecture. In addition, the 
Group has continued to work hard on significant performance 
improvements in key functional areas.
services
The Group’s objective remains to be a trusted adviser to all 
its clients, providing them with high quality consulting and 
development services and delivering projects on time and on 
budget. The fact that four new clients have gone live with the 
Group’s solutions in 2008 is further testimony to our team’s 
ability to deliver significant projects around the globe.
The Group remains committed to improving customer 
satisfaction. This involves partnering with our clients at all 
levels, the continuing roll-out of Prince 2 project management 
methodology for implementations, and extending automated 
testing of our solutions. The Group is also initiating further 
accreditation and training programs in 2009 and is working 
diligently on faster issue resolution and better documentation.
Comsoft acquisition
In January 2009, the Group acquired Comsoft, a UK-based 
company providing software for the risk management and 
administration of raw materials or Concentrates for the metals 
market. Comsoft has been operating since 1984 and has 
clients in Europe and North America. The acquisition has a 
compelling strategic and financial rationale, offering the Group 
a greater depth of functionality and expertise in Concentrates, 
particularly aimed at mining and smelting companies and 
trading companies. It broadens the Group’s own Concentrates 
product offering and provides an attractive opportunity to 
accelerate further growth.
In addition, the Group’s expertise in metal trading and risk 
solutions combined with Comsoft’s strength in raw materials 
solutions creates an excellent platform to drive revenue 
synergies. 
our future
While there is currently uncertainty around banks’ trading 
performances, the increased demand in risk management 
solutions and increased automation to drive cost savings 
should, we believe, still lead to further growth during 2009. 
The Group is well positioned to capitalise on this opportunity. 
We are confident that solid foundations have been laid, early 
success in our business plan has been demonstrated, and the 
Group has a strong platform for ongoing growth and success 
in 2009 and beyond.
gavin lavelle
Chief Executive Officer
10 March 2009
PROFIT BEFORE TAX
+63%
“With a highly 
developed 
solution set 
and a fantastic 
team at Brady, 
we have been 
successful 
in signing 
numerous 
new clients, 
many of them 
leaders in their 
respective 
market 
sectors.”
Brady plc Consolidated Financial Statements 5 FINANCIAL REVIEW
group t rading Performance
Revenue for the year increased by 8% to £6.2 million, 
of which £2.2 million of revenue derived from recurring 
maintenance (2007: £1.6 million). The revenue composition 
is summarised in the table below:
 2008 2007
 £ million % £ million %
Licences 2.1 34% 2.3 40%
Maintenance 2.2 35% 1.6 28%
Services 1.9 31% 1.8 32%
Total 6.2 100% 5.7 100%
The recurring maintenance component comprised 35% of 
total revenue (2007: 28%). As previously highlighted, there 
has been limited opportunity to recognise significant licence 
revenue in the earlier part of 2008 due to new contract 
licence revenues not being recognised until customer 
acceptance. Licence revenues have been recognised in 
relation to approximately half of the licence revenue from 
the new licence sales achieved in 2008, with the remainder 
being deferred for anticipated revenue acceptance and 
recognition in 2009.
The gross margin increased by 2% to 60% compared to the 
2007 level of 58%, primarily as a result of a higher proportion 
of revenues being recurring support revenues and a greater 
level of productivity achieved by the services teams.
 
Selling and administrative expenses remained flat at £2.9 
million, confirming the Board’s commitment to contain the 
Group’s cost base during the recent phase of reorganisation 
and investment in the sales force. 
Operating profits increased to £0.7 million (2007: £0.3 
million), representing an operating margin of 11% (2007: 
6%).
finance income
Interest income from the Group’s cash resources remained 
similar at £0.3 million (2007: £0.3 million).
tax
The corporation tax charge for the year was £0.3 million 
(2007: £0.2 million), representing an effective tax rate of 
28% (2007: 24%).
earnings and dividends
Profit before tax increased to £1.0 million (2007: £0.6 
million), representing a profit before tax margin of 17% 
(2007: 11%). Profit after tax increased to £0.8 million 
(2007: £0.5 million).
The weighted average number of shares in issue increased 
to 27.5 million (2007: 26.7 million). Basic earnings per 
share increased to 2.73 pence from 1.82 pence per share in 
2007. Diluted earnings per share increased to 2.49 pence 
from 1.64 pence per share in 2007.
The proposed final dividend for the year has increased to 1.2 
pence per share (2007: 1.1 pence per share), representing 
dividend growth of 9%.
Balance sheet
The group retains a very strong balance sheet, dominated 
by cash and cash equivalents with a relatively modest level 
of intangible assets.
Goodwill remained at £0.2 million. As required by IAS38 
Intangible assets the Group capitalised £0.2 million (2007: 
£nil) of expenditure in relation to strategic software 
development programmes. The Group has a continued 
commitment to enhancing and expanding its offerings and 
the majority of expenditure in the year on research and 
development was expensed as incurred. 
Trade and other receivables decreased to £1.8 million from 
£2.0 million. Payables increased to £3.4 million from £2.2 
million, largely as a result of increased licence revenues 
secured under new contracts signed in the year but included 
within deferred income at the balance sheet date and 
anticipated to be recognised in 2009.
Cashflow
The Group had very strong operating cashflow, at £2.2 
million (2007: £0.6 million) continuing the trend of 
generating operating cash ahead of operating profit, the 
latter being £0.7 million (2007: £0.3 million). Cash resources 
at the end of the year increased to £7.8 million (2007: £6.0 
million) and compared to cash resources at 28 February 
2009 of £6.9 million which is stated after deducting the 
full £1.5 million of cash in relation to Comsoft. The Group 
continues to have no debt. 
risk
The principal credit risk faced by the Group relates to trade 
receivables, although this risk is much reduced because 
the Group’s principal customers are large institutions or 
companies. A significant proportion of the Group’s revenues 
and expenses are denominated in pounds sterling. The 
Group has limited exchange risk and has not entered into 
any forward exchange contracts during the year. 
tony ratcliffe
Finance Director
10 March 2009
Brady plc Consolidated Financial Statements 6 The Directors present their report together with financial 
statements for the year ended 31 December 2008.
Principal activity 
The principal activity of the Group continues to be a 
global provider and partner of choice for trading, risk 
management and settlement solutions to the metals and 
commodities industries, through the delivery of customer 
focused software and services.
Business review
A more detailed review of the Group’s activities is contained 
within the Chairman’s Statement, the Chief Executive’s 
Review and the Financial Review. Demonstrable success has 
been achieved in 2008 following the re-organisation of the 
Group’s internal resources in order to aggressively focus its 
efforts towards sales order and revenue generation.
Key performance indicators
The key performance indicators (KPI’s) used to monitor 
the business comprise qualified lead pipeline, licence 
bookings, revenues, gross margin, expenses, operating 
margin and components of working capital. The KPI’s are 
regularly reviewed by the Directors and management in 
respect of changes within periods and changes between 
reporting periods. KPI highlights are provided within the 
Chief Executive’s Review.
financial risk Management
The Group’s international operations expose it to a number 
of risks that include the effect of changes in foreign currency 
exchange rates, credit, and interest rates. The Group does 
not trade in financial instruments. Further details in relation 
to interest rate risk, credit risk and currency risk are shown 
in note 27.
interest rate risk
The Group finances its activities exclusively through 
retained cash and equity finance. Interest income has 
formed a substantial component of the Group’s total 
income, although this is anticipated to reduce in the future. 
The Group monitors its exposure to interest rate risk when 
investing its cash resources. 
Credit risk
Although the Group’s customers include banks, financial 
institutions and mining companies, all sectors of which 
have undergone recent high-profile difficulties, the Group 
is not dependant on a small number of very large customer 
accounts and it does not believe it is exposed to major 
concentration of credit risk. However, in the event of non-
performance of any of its larger customers, the Group 
could be exposed to some credit-related losses.
exchange risk
The majority of the Group’s receivables and payables are 
currently denominated in the Group’s functional currency, 
Pound Sterling. To a degree, the Group relies on a natural 
hedge of US dollar receivables being broadly similar to US 
dollar payables. The Group currently has less significant 
transactions in Euros or other currencies. The Group’s 
foreign exchange exposure is continuously monitored.
liquidity risk
In addition, the Group maintains positive cash resources 
and has sufficient available funds for operations and 
planned expansion of its existing activities.
Principal risks and uncertainties
The management of the business and the execution of the 
Group’s strategic plans are subject to a number of risks. 
The key business risks identified affecting the Group are 
set out below:
growth management
The ability of the Group to implement its growth strategy 
requires effective planning, forecasting and management 
control systems. The Group’s growth plan may place a 
strain on management, operational, financial and personal 
resources. Any failure to expand operational, financial and 
management systems in line with growth could have a 
material adverse effect on the Group’s business, financial 
condition or results of operations. 
 
Dependence on key employees
The Group’s success is substantially dependent on retaining 
and incentivising senior management and key employees, 
the loss of which could have an adverse impact on the 
Group’s business. 
Dividends
The Directors recommend a dividend of 1.2p per ordinary 
share (2007: 1.1p per ordinary share). The proposed final 
dividend, if approved at the Annual General Meeting 
(AGM), will be paid on 26 May 2009 to shareholders on 
the register at the close of business on 24 April 2009.
share issues
Details of the shares issued during the period are detailed 
in note 22 to the financial statements. 
research and development
The Group regards ongoing investment in research and 
development as critical to its future profitability, with 
annual expenditure incurred in order to continually 
enhance its product offerings to ensure that its products are 
the most comprehensive, competitive and market leading 
solution for its customers. The Group invested £1,287,000 
ShARE PRIcE
+XX%
REPORT OF THE DIRECTORS
Brady plc Consolidated Financial Statements 7 (2007: £1,205,000) in research and development, of which 
£1,040,000 (2007: £1,205,000) has been charged against 
profits and £247,000 (2007: nil) has been capitalised.
Directors
The present membership of the Board is set out below. All 
Directors served throughout the year, except as indicated.
The interests of the Directors in the shares of the Company 
as at 1 January 2008, or date of appointment if later, and 
31 December 2008, were as follows:
 31 December 2008 1 January 2008
 ordinary shares ordinary shares
 of 1p each of 1p each
Paul Fullagar 1,000,000 (3.63%) 1,000,000 (3.65%)
Geoffrey Bicknell 19,600 (0.07%) – 
(appointed 2 January 2008)
Robert Brady 9,068,728 (32.88%) 9,068,728 (33.13%)
Patrick Brazel 231,682 (0.84%) – 
(appointed 2 January 2008)
Brian Collins 850,000 (3.08%) 850,000 (3.11%)
Peter Harverson – –
Gavin Lavelle 685,000 (2.48%) 685,000 (3.16%)
Tony Ratcliffe 50,000 (0.18%) 50,000 (0.18%)
Details of options held by Directors at 31 December are 
contained within the Remuneration Report and are in 
addition to the interests in shares shown above.
There were no changes in the Directors’ shareholdings 
between the year-end and 10 March 2009.
In accordance with Brady plc’s Articles of Association, 
Robert Brady and Brian Collins retire by rotation and offer 
themselves for re-election at the Annual General Meeting.
Directors’ responsibilities for the financial statements
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. The financial statements are required by law to 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. In preparing these financial statements, the 
Directors are required to:
•  select suitable accounting policies and then apply them 
consistently;
•  make judgments and estimates that are reasonable 
and prudent;
•  state whether applicable IFRS have been followed, 
subject to any material departures disclosed and 
explained in the financial statements; and
•  prepare the financial statements on the going concern 
basis unless it is inappropriate to presume that the 
company will continue in business.
The Directors are responsible for keeping proper accounting 
records that disclose with reasonable accuracy at any time 
the financial position of the Group and Company and 
enable them to ensure that the financial statements comply 
with the Companies Act 1985. 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. In so far as the Directors 
are aware:
•  there is no relevant audit information of which the 
Group’s auditors are unaware; and
•  the Directors have taken all steps that they ought to 
have taken to make themselves aware of any relevant 
audit information and to establish that the auditors are 
aware of that information.
The Directors are responsible for the maintenance and 
integrity of the corporate and financial information included 
on the Company’s website. Legislation in the United 
Kingdom governing the preparation and dissemination of 
financial statements may differ from legislation in other 
jurisdictions.
employment policies
The Group aims to attract, retain and motivate the best 
staff regardless of race, religion, sexual orientation, age 
or disability. To that end it is committed to offering equal 
employment opportunities. The Group encourages share 
ownership through a number of share option schemes.
The Group recognises its responsibilities towards keeping 
employees informed of matters affecting them as employees 
and the economic factors affecting the performance of the 
Group. To this end, regular updates and consultations take 
place with employees.
Disabled employees
The Group recognises its obligations towards disabled 
people and endeavours to provide employment where 
possible having regard to the physical demands of the 
Group’s operations and the abilities of the disabled 
persons.
Health and safety
The Group is committed to maintaining a safe and healthy 
working environment for all staff. To that end it provides 
appropriate training and supervision.
Brady plc Consolidated Financial Statements 8
REPORT OF THE DIRECTORS
continued substantial shareholders
At 9 March 2009 the following, other than the Directors 
whose shareholdings are outlined above, had notified the 
Company of disclosable interests in 3% or more of the 
nominal value of Brady plc’s ordinary shares of 1p each:
Name   Shareholding %
HSBC Global Custody Nominee  
(UK) Limited   6,014,003 21.80
R C Greig Nominees Limited   2,110,000 7.65
L R Nominees Limited   1,050,126 3.81
Pershing Nominees Limited   969,682 3.52
Electra Kngsway VCT PLC   925,926 3.36
Payment policy and practice
The Group’s policy concerning the payment of suppliers is 
to agree terms of payment at the start of business with 
each supplier or to ensure the supplier is made aware of 
the standard payment terms. The Group’s normal policy 
is to pay suppliers at the end of the month following the 
month in which goods are received. The number of days’ 
purchases outstanding for payment at 31 December 2008 
was 30 days (2007: 30 days) for the Group and Company.
Post balance sheet events
In January 2009 the Company acquired Commodities 
Software (UK) Limited (“Comsoft”), a UK based company 
providing software for the risk management and 
administration of raw materials or ‘concentrates’ for the 
metals market. The total consideration is estimated to be 
£1.5 million plus the value attributable to working capital, 
estimated to be £417,000. The consideration consisted of 
an initial payment of £725,000 plus the value attributable to 
working capital. The contingent amounts are payable over 
the two years following completion and are dependant on 
the successful achievement of certain performance criteria 
during that period. Further details are provided in note 30. 
auditors
A resolution for the re-appointment of Grant Thornton 
UK LLP as Auditors of the Group is to be proposed at 
the forthcoming Annual General Meeting. In accordance 
with normal practice, the Directors will be authorised to 
determine the Auditor’s remuneration.
annual general Meeting
The Annual General Meeting will be held at 60 Cannon 
Street, London, EC4N 6NP on Thursday 30 April 2009 
at midday. The notice of the Annual General Meeting 
accompanies these Financial Statements.
ON BEHALF OF THE BOARD
tony ratcliffe
Secretary
10 March 2009
Brady plc Consolidated Financial Statements 9 The Board take their corporate governance responsibilities 
seriously, and the following statements set out the principles 
and methods to which they adhere. The Statement of 
Directors’ Responsibilities for preparing the financial 
statements is set out on page 8.
Board
The Board of Brady plc, comprising four Non-Executive 
and four Executive Directors, meets formally at least ten 
times per year to discuss strategy, direction and financial 
performance. The Non-Executive Directors are invited to 
attend all meetings. 
The Group recognises the benefit of Non-Executive Directors 
who bring judgement on issues of strategy, resources, 
performance and standards of conduct. The Non-Executive 
Directors are deemed as independent.
The Board has adopted a schedule of matters specifically 
reserved for its approval or review, including strategic 
operating plans, annual operating budgets, major capital 
expenditure and financial commitment and financial 
performance.
The Board have implemented monthly management 
reports, which are distributed electronically to the whole 
Board for comment.
All Directors have access to the advice and services of 
the Company Secretary and the Directors are able to 
seek independent professional advice if necessary at the 
Company’s expense. All Directors are subject to election 
by the shareholders at the first Annual General Meeting 
following their appointment, and to re-election thereafter 
at intervals of no more than three years. 
Board Committees
remuneration Committee
The Remuneration Committee comprises Peter Harverson, 
Geoffrey Bicknell, Patrick Brazel and Paul Fullagar and is 
under the chairmanship of Peter Harverson. It meets and 
approves the remuneration and terms and conditions of 
employment for the Executive Directors. The share option 
schemes’ rules have also been reviewed and approved by 
the Committee.
audit Committee
The Audit Committee comprises Geoffrey Bicknell, Peter 
Harverson, and Patrick Brazel under the chairmanship 
of Geoffrey Bicknell. It meets as necessary to review the 
draft interim and full year financial statements. It discusses 
the scope and planning of the audit with the auditors 
before the audit and agrees their remuneration. Specific 
responsibilities also include the reviewing of effectiveness 
of internal controls; reviewing the scope and results of the 
external audit, reviewing the appropriateness of accounting 
policies and reviewing of key management judgements and 
risk assessments.
nominations Committee
The nominations committee comprises the Chairman and 
the Non-Executive Directors. It is responsible for monitoring 
the composition and balance of the Board and making 
recommendations to the Board on potential new Board 
appointments.
auditor independence
It is the responsibility of the Audit Committee to review 
and monitor the external Auditor’s independence and 
objectivity and the effectiveness of the audit process, taking 
into consideration relevant UK professional and regulatory 
requirements and to develop and implement policy on the 
engagement of the external Auditor to supply non-audit 
services, taking into account relevant ethical guidance. 
internal control
The Board of Directors has overall responsibility for the 
Company’s system of internal control and for reviewing its 
effectiveness. The risk management process and systems 
of internal control are designed to manage rather than 
eliminate the risk of failures to achieve the Company’s 
objectives. It should be recognised that such systems can 
only provide reasonable but not absolute assurance against 
material misstatement or loss.
assessment of business risk
A system to identify, assess, and evaluate business risk is 
embedded within the management process throughout 
the Company. Strategic risks are regularly reviewed by 
the Board. Risks relating to the key activities within the 
Group are assessed continuously and mitigation strategies 
implemented.
The Group carries out individual bid reviews prior to the 
commitment to any significant transaction or business 
commitment and carries out weekly project steering reviews 
to monitor the delivery of ongoing customer projects.
Control environment
The Group’s operating procedures include a comprehensive 
system for reporting financial and non-financial information 
to the Board including:
•  An established management structure operating 
throughout the Group with clearly defined levels of 
responsibility and delegation of authorities;
•  Clearly defined operating guidelines and procedures 
with authorisation limits set at appropriate levels;
CORPORATE GOVERNANCE
Brady plc Consolidated Financial Statements 10 •  Formal accounting policies and procedures and 
standard financial control procedures in place which 
are applicable to all areas of the Group;
•  Comprehensive budgeting and financial reporting 
systems involving review and approval of budgets by 
the Board, monthly monitoring of performance against 
these budgets and full investigation of variances;
•  There are clear procedures for monitoring the system 
of key controls, including an annual review of internal 
controls; and
•  Detailed operational procedures have been developed 
for the business. The implications for changes in the 
law and regulations are taken into account within 
these procedures.
internal audit
Due to the small size of the Group, the Board has a close 
direct control over all activities of the Group and does not 
believe it would be cost efficient to operate an internal 
audit function. 
relations with shareholders
The Directors, together with the Group’s advisers, 
hold meetings and discussions with key institutional 
shareholders, thereby helping to ensure that there is a 
mutual understanding of objectives. The Board also uses the 
Annual General Meeting to communicate with shareholders 
and encourages their attendance and participation.
Brady plc Consolidated Financial Statements 11 REMUNERATION REPORT
Brady plc Consolidated Financial Statements 12
The report of the Remuneration Committee has been 
approved by the Board of Directors for submission for 
shareholders’ approval at the Annual General Meeting.
remuneration policy
The Remuneration Committee makes recommendations to 
the Board on executive remuneration policy for adoption by 
the Board and determines specific remuneration packages 
for each of the Executive Directors on behalf of the Board. 
Remuneration and benefits are set at appropriate levels to 
attract, retain and motivate high calibre individuals, not in 
excess of market rates for comparable companies. 
Components of executive Directors’ remuneration
overview
The Committee’s policy is to maintain an appropriate 
balance between fixed elements of remuneration and 
performance-related elements. The Committee and Board 
encourage Directors and staff at all levels to acquire shares 
in Brady plc and to hold them for the longer term. This 
sense of ownership is an important element of the Group’s 
culture and of its focus on long-term performance.
The remuneration received by each of the Directors, together 
with details of share interests and pension benefits, are set 
out on page 13.
salary
Salaries are reviewed annually with effect from 1 January 
and adjustments made, if required, to reflect competitive 
pay levels, changes in responsibility and Company 
performance. 
Bonuses
Executive Directors are eligible to participate in an annual 
bonus programme, which is calculated by reference to 
appropriate targets.
share options
Share options are granted to Directors to provide an element 
of remuneration linked to Group performance at levels 
appropriate to the objectives of the overall remuneration 
policy.
service contracts
The service agreement of Robert Brady can be terminated 
by himself or the Group provided at least twelve months 
notice has been given. The service agreements of all other 
Executive Directors can be terminated by the Director or the 
Group provided at least six months notice has been given.
non-executive Directors’ remuneration
The remuneration of the Non-Executive Directors is 
determined by the Board and reflects their anticipated 
time commitment to fulfil their duties. The Non-Executive 
Directors do not receive any pension benefits. The letters 
of appointment of all Non-Executive Directors can be 
terminated by the Director or the Group provided at least 
three months notice has been given.
Pensions
Executive Directors contribute to a defined contribution 
scheme providing for a pension on retirement. No other 
payments to Directors are pensionable. There have been 
no changes in the terms of Directors’ pension entitlements 
during the year. There are no unfunded pension promises 
or similar arrangements for Directors. The Group operates a 
defined contribution group pension scheme for the benefit 
of employees. The assets of this scheme are administered by 
trustees in a fund independent from those of the Group.  
Brady plc Consolidated Financial Statements 13
Directors’ remuneration
The remuneration of the Directors is as follows:
salary/ 
fee 
£’000
Bonus 
£’000
Benefit 
in kind 
£’000
2008 
total 
(excl. 
pension) 
£’000
2007 
Total 
(Excl. 
pension) 
£’000
2008 
Pension 
£’000
2007 
Pension 
£’000
Current Directors:
non-executive:
Paul Fullagar 25 – – 25 13 – –
Geoff Bicknell
1
15 – – 15 – – –
Pat Brazel
1
15 – – 15 – – –
Peter Harverson 15 – – 15 64 – –
executive:
Robert Brady 120 35 1 156 102 6 25
Brian Collins 100 27 – 127 137 5 –
Gavin Lavelle 165 115 1 281 95 8 –
Tony Ratcliffe 105 74 1 180 84 5 –
ex Directors:
Neil McArthur – – – – 10 – –
David Rowe – – – – 3 – –
Graham Simister – – – – 40 – –
560 251 3 814 548 24 25
 
1
 Appointed 2 January 2008
share options
Director granted number of options
exercise 
price in pence exercise period
Brian Collins 4 May 2006 50,000 25p 4 May 09 to 4 May 11
14 Mar 2008 50,000 44p 14 Mar 09 to 13 Mar 15
Peter Harverson 14 Mar 2008 50,000 44p 14 Mar 09 to 13 Mar 15
Gavin Lavelle 27 Sep 2007 955,955 41.5p 27 Sep 08 to 26 Sep 14
Tony Ratcliffe 27 Sep 2007 416,565 41.5p 4 May 08 to 26 Sep 14
The closing mid-market price of the ordinary shares was 48.5 pence at 31 December 2008. The closing mid-market price ranged from 36 pence to 51.55 pence during the year.
The expense recognised in the income statement for the Directors’ share options was £61,000 (2007: £26,000).
resolution
A resolution to accept the report of the Remuneration Committee will be put to shareholders at the Annual General Meeting.
Peter Harverson
Chairman, remuneration Committee  
Brady plc Consolidated Financial Statements 14
REPORT OF THE INDEPENDENT AUDITOR 
TO THE MEMBERS OF BRADY PLC 
We have audited the Group and parent Company financial statements (the ‘’financial statements’’) of Brady plc for the year ended 31 December 2008 which comprise the 
principal accounting policies, the Consolidated Income Statement, the Consolidated and Company Balance Sheets, the Consolidated and Company Statement of Changes 
in Equity, the Consolidated and Company Cash Flow statements and notes 1 to 32. These financial statements have been prepared under the accounting policies set out 
therein. 
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work has been undertaken so that 
we might state to the Company’s members those matters we are required to state to them in an 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
The Directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and International Financial Reporting 
Standards (“IFRSs”) as adopted by the European Union are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and 
Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements have been properly prepared in 
accordance with the Companies Act 1985. We also report to you whether in our opinion the information given in the Directors’ Report is consistent with the financial 
statements. The information given in the Directors’ Report includes specific information presented in the Chairman’s Statement, the Chief Executive’s Review and the 
Financial Review that is cross-referenced from the Business Review section of the Directors’ Report. 
In addition we report to you if, in our opinion, the Company has not kept proper accounting records, if we have not received all the information and explanations we 
require for our audit, or if information specified by law regarding Directors’ remuneration and other transactions is not disclosed.
We read other information contained in the Annual Report, and consider whether it is consistent with the audited financial statements. The other information comprises 
only the Directors’ Biographies, the Chairman’s Statement, the Chief Executive Officer’s Review, the Financial Review, the Report of the Directors, the report of Corporate 
Governance and the Remuneration Report. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies 
with the financial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, 
on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments 
made by the Directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Group’s and Company’s circumstances, 
applied consistently and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to 
give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion 
we also evaluated the overall adequacy of the presentation of information in the financial statements.
opinion
In our opinion:
•  the Group financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union, of the state of the Group’s affairs as at 31 
December 2008 and of its profit for the year then ended;
•  the parent Company financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union as applied in accordance with the 
provisions of the Companies Act 1985, of the state of the parent Company’s affairs as at 31 December 2008;
•  the financial statements have been properly prepared in accordance with the Companies Act 1985; and
•  the information given in the Directors’ Report is consistent with the financial statements.
GRANT THORNTON UK LLP 
REGISTERED AUDITOR 
CHARTERED ACCOUNTANTS
Cambridge
10 March 2009 Brady plc Consolidated Financial Statements 15
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2008
notes 2008 
£’000
2007 
£’000
revenue 6,167 5,711
Cost of sales (2,484) (2,401)
gross profit 3,683 3,310
Selling and administrative expenses (2,985) (2,988)
operating result 698 322
Finance income 6 341 317
Profit for the year before taxation 1,039 639
Tax expense 9 (289) (153)
net profit for the year 750 486
Attributable to shareholders of Brady plc 750 486
earnings per share (pence) 10
Basic 2.73 1.82
Diluted 2.49 1.64
All of the above relate to continuing operations.
The accompanying accounting policies and notes form an integral part of these financial statements Brady plc Consolidated Financial Statements 16
CONSOLIDATED BALANCE SHEET
31 December 2008
notes 2008  
£’000
2007  
£’000
assets
non-current assets
Goodwill 13 243 243
Other intangible assets 14 247 –
Long-term financial assets 15 – 15
Property, plant and equipment 17 301 287
791 545
Current assets
Trade and other receivables 19 1,751 2,031
Cash and cash equivalents 20 7,828 5,957
9,579 7,988
total assets 10,370 8,533
equity
Share capital 22 276 274
Share premium account 3,817 3,762
Merger reserve 680 680
Equity reserve 309 216
Foreign exchange reserve (19) –
Capital reserve 1 1
Retained earnings 1,896 1,447
total equity 6,960 6,380
liabilities
Current
Trade and other payables 21 2,926 1,778
Current tax payable 484 375
3,410 2,153
total equity and liabilities 10,370 8,533
The financial statements were approved by the Board of Directors on 10 March 2009 and signed on its behalf by:
gavin lavelle tony ratcliffe 
Chief executive officer finance Director
 
The accompanying accounting policies and notes form an integral part of these financial statements Brady plc Consolidated Financial Statements 17
COMPANY BALANCE SHEET
31 December 2008
notes 2008  
£’000
2007  
£’000
assets
non-current assets
Goodwill 13 337 337
Other intangible assets 14 247 –
Long term financial assets 15 – 15
Investments 16 56 56
Property, plant and equipment 17 297 287
937 695
Current assets
Trade and other receivables 19 1,699 2,016
Cash and cash equivalents 20 7,817 5,943
 9,516 7,959
total assets 10,453 8,654
equity
Share capital 22 276 274
Share premium account 3,817 3,762
Merger reserve 680 680
Equity reserve 309 216
Capital reserve 1 1
Retained earnings 1,899 1,504
total equity 6,982 6,437
liabilities
Current
Trade and other payables 21 2,999 1,842
Current tax payable 472 375
3,471 2,217
total equity and liabilities 10,453 8,654
The financial statements were approved by the Board of Directors on 10 March 2009 and signed on its behalf by:
gavin lavelle tony ratcliffe 
Chief executive officer finance Director
 
The accompanying accounting policies and notes form an integral part of these financial statements. Brady plc Consolidated Financial Statements 18
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
31 December 2008
equity attributable to shareholders of Brady plc:
share 
capital 
£’000
share 
premium 
account 
£’000
Merger 
reserve 
£’000
equity 
reserve 
£’000
foreign 
exchange 
reserve 
£’000
Capital 
reserve 
£’000
retained 
earnings 
£’000
total 
equity 
£’000
Balance at 1 January 2007 262 3,121 680 161 – 1 1,223 5,448
Profit and total recognised 
income and expenditure for 
the year – – – – – – 486 486
Dividends – – – – – – (262) (262)
Increase in equity reserve in 
relation to options issued – – – 55 – – – 55
Allotment of shares following 
placing of shares 10 590 – – – – – 600
Allotment of shares following 
exercise of share options 2 51 – – – – – 53
Balance at 31 December 2007 274 3,762 680 216 – 1 1,447 6,380
Exchange difference on 
consolidation and total 
recognised directly in equity – – – – (19) – – (19)
Profit for the year – – – – – – 750 750
Profit and total recognised 
income and expenditure for 
the year – – – – (19) – 750 731
Dividends – – – – – – (301) (301)
Increase in equity reserve in 
relation to options issued – – – 93 – – – 93
Allotment of shares following 
exercise of share options 2 55 – – – – – 57
Balance at 31 December 2008 276 3,817 680 309 (19) 1 1,896 6,960
The accompanying accounting policies and notes form an integral part of these financial statements. Brady plc Consolidated Financial Statements 19
COMPANY STATEMENT OF CHANGES IN EQUITY
31 December 2008
equity attributable to shareholders of Brady plc:
share 
capital 
£’000
share 
premium 
account 
£’000
Merger 
reserve 
£’000
Capital 
reserve 
£’000
equity 
reserve 
£’000
retained 
earnings 
£’000
total 
equity 
£’000
Balance at 1 January 2007 262 3,121 680 161 1 1,276 5,501
Profit and total recognised income 
and expenditure for the year – – – – – 490 490
Dividends – – – – – (262) (262)
Increase in equity reserve in relation 
to options issued – – – 55 – – 55
Allotment of shares following 
placing of shares 10 590 – – – – 600
Allotment of shares following 
exercise of share options 2 51 – – – – 53
Balance at 31 December 2007 274 3,762 680 216 1 1,504 6,437
Profit and total recognised income 
and expenditure for the year – – – – – 696 696
Dividends – – – – – (301) (301)
Increase in equity reserve in relation 
to options issued – – – 93 – – 93
Allotment of shares following 
exercise of share options 2 55 – – – – 57
Balance at 31 December 2008 276 3,817 680 309 1 1,899 6,982 Brady plc Consolidated Financial Statements 20
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2008
2008  
£’000
2007  
£’000
operating activities
Profit and total recognised income and expenditure for the year 731 486
Depreciation of property, plant and equipment 140 103
Impairment of long term financial assets 15 –
Impairment of goodwill – 71
Interest receivable (341) (317)
Employee equity settled share options 93 55
Changes in trade and other receivables 259 255
Changes in trade and other payables 1,257 (185)
Taxes refunded 21 115
2,175 583
investing activities
Additions to property, plant and equipment (154) (251)
Additions to capitalised development (247) –
Interest received 341 317
(60) 66
financing activities
Proceeds from share issues 57 653
Dividends paid (301) (262)
(244) 391
Net changes in cash and cash equivalents 1,871 1,040
Cash and cash equivalents, beginning of year 5,957 4,917
Cash and cash equivalents, end of year 7,828 5,957
The accompanying accounting policies and notes form an integral part of these financial statements Brady plc Consolidated Financial Statements 21
COMPANY CASH FLOW STATEMENT
For the year ended 31 December 2008
2008  
£’000
2007  
£’000
operating activities
Profit and total recognised income and expenditure for the year 696 486
Depreciation of property, plant and equipment 140 103
Impairment of long term financial assets 15 –
Impairment of goodwill – 71
Interest receivable (341) (317)
Employee equity settled share options 93 55
Changes in trade and other receivables 296 255
Changes in trade and other payables 1,254 (185)
Taxes refunded 21 115
2,174 583
investing activities
Additions to property, plant and equipment (150) (251)
Additions to capitalised development (247) –
Interest received 341 317
(56) 66
financing activities
Proceeds from share issues 57 653
Dividends paid (301) (262)
(244) 391
Net changes in cash and cash equivalents 1,874 1,040
Cash and cash equivalents, beginning of year 5,943 4,903
Cash and cash equivalents, end of year 7,817 5,943
The accompanying accounting policies and notes form an integral part of these financial statements. NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2008
Brady plc Consolidated Financial Statements 22
1. nature of operations and general information
Brady plc and its subsidiaries’ principal activity is the provision of risk management and settlement solutions to the metals and commodities industries, through the delivery 
of customer focused software and services. 
The Group provides the leading trading and risk management software for global commodity markets. On a single platform, the Group provides a complete integrated 
solution supporting entire commodities trading operations. 
Brady plc, a limited liability company, is the Group’s ultimate parent company. It is registered in England and Wales. The address of Brady plc’s registered office, which is 
also its principal place of business, is 281 Cambridge Science Park, Milton Road, Cambridge, CB4 0WE. 
The financial statements for the year ended 31 December 2008 were approved by the Board of Directors on 10 March 2009. 
Brady plc’s shares are listed on the London Stock Exchange’s Alternative Investment Market (AIM). Brady plc’s consolidated full year financial statements are presented in 
British pounds (£), which is also the functional currency of the ultimate parent company. 
2. accounting policies
Basis of preparation
These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union.
The financial statements have been prepared under the historical cost convention except where they have been modified to include the revaluation of certain assets and 
liabilities. The measurement bases and principal accounting policies for the Group are set out below.
All accounting estimates and assumptions that are used in preparing the financial statements are consistent with the Group’s latest approved budget forecasts where 
applicable. Judgments have been based on the information available at each balance sheet date. Although these estimates are based on the best information available to 
management, actual results may ultimately differ from those estimates. Key accounting judgments and estimates are detailed within note 3.
Basis of consolidation
The Group financial statements consolidate those of Brady plc and of its subsidiary undertakings at the balance sheet date. Subsidiary undertakings are entities over which 
the Group has the power to govern the financial and operating policies so as to obtain benefits from the activities, which is considered to represent control. The Group 
obtains and exercises control through voting rights. 
Profits or losses on intra-Group transactions are eliminated in full. Acquisitions of subsidiaries are dealt with by the purchase method. 
Business combinations
On acquisition of a subsidiary, all of the subsidiary’s assets and liabilities which exist at the date of acquisition are recorded at their fair values reflecting their condition at 
that date. Goodwill is stated after separating out identifiable intangible assets. Goodwill represents the excess of acquisition cost over the fair value of the Group’s share 
of the identifiable net assets of the acquired subsidiary at the date of acquisition. Acquisition costs are the fair values at the date of exchange of assets given liabilities 
incurred or assumed and equity instruments issued by the Group in exchange for control and any costs directly attributable to the business combination. 
If the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, then the identifiable 
assets, liabilities, contingent liabilities and the cost of combination are re-assessed. Following the re-assessment, any profit or loss in excess is recognised immediately.
The Group has elected not to apply IFRS 3 Business Combinations retrospectively to business combinations prior to the date of transition, 1 January 2006. Accordingly 
the classification of the combination remains unchanged from that used under UK GAAP . Assets and liabilities are recognised at the date of transition as they would be 
recognised under IFRS, and are measured using their UK GAAP carrying amount immediately post-acquisition as deemed cost under IFRS, unless IFRS requires fair value 
measurement. 
When Brady plc acquired Colplan Systems Limited in 2004, there was a share-for-share exchange. The UK GAAP merger relief criteria were met and so a merger reserve 
was recognised. 
goodwill
Goodwill represents the excess of the cost of acquisition over the fair value of the identifiable net assets acquired and is capitalised. 
Goodwill is subject to annual impairment testing. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately 
identifiable cash flows (cash-generating units). Goodwill is allocated to those cash-generating units that are expected to benefit from synergies of the related business 
combination and represent the lowest level within the Group at which management monitors the related cash flows. The recoverable amount is tested annually or when 
events or changes in circumstances indicate that it may be impaired. The recoverable amount is the higher of the fair value less costs and the value in use in the Group. 
An impairment loss is recognised to the extent that the carrying value exceeds the recoverable amount. In determining a value in use, estimated future cash flows are  Brady plc Consolidated Financial Statements 23
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the goodwill 
that have not already been included in the estimate of future cash flows. 
If the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, then the identifiable 
assets, liabilities, contingent liabilities and the cost of combination are re-assessed. Following the re-assessment, any profit or loss in excess is recognised immediately.
Goodwill previously written-off under UK GAAP prior to the adoption of IFRS for the restated balance sheet of 1 January 2006 has not been reinstated. Goodwill previously 
written off to reserves is not written back to profit or loss on subsequent disposal.
revenue
Revenue comprises the value of sales (excluding trade discounts and VAT) of goods and services in the normal course of business. All revenue is measured at fair value of 
consideration. The Group has four sources of revenue and the policy on revenue recognition of each is as follows:
•	 	 Licence	fee	r evenues	ar e	r ecognised	on	practical	acceptance	of	the	softwar e,	when	all	obligations	have	been	substantially	completed.	This	is	when	the	customer	has	
accepted the product, the risks and rewards of ownership have been transferred, it is probable that the economic benefits of the transaction will flow to the Group, 
all costs and revenue in relation to the transaction can reliably be measured and the Group has no further managerial involvement over the goods to the degree 
usually associated with ownership. To the extent that payments have been received in advance for licences, where practical acceptance has not yet been reached, 
these amounts are recognised as deferred income;
•	 	 Consulting	and	pr ofessional	service	fee	r evenues	ar e	r ecognised	as	the	work	is	performed	pr ovided	that	the	amount	of	r evenue	can	be	measur ed	r eliably ,	it	is	pr obable	
that the economic benefits of the work performed will flow to the Group and the costs involved in providing the service can be measured reliably;
•	 	 Maintenance	and	r ental	income	is	r ecognised	over	the	period	to	which	it	r elates	pr ovided	that	the	r evenue	can	be	measur ed	r eliably ,	it	is	pr obable	that	the	economic	
benefits of the work performed will flow to the Group and the costs involved in fulfilling the maintenance or service can be measured and it is probable that the 
maintenance or rental period will be completed; and
•	 	 Wher e	r evenue	arises	fr om	customer	specific-softwar e	development,	or	wher e	specific	customisation	or	modification	of	the	softwar e	is	r equir ed,	then	r evenue	is	
recognised as the revenue and costs of the contract progresses, the stage of completion of the contract can be reliably measured and it is probable that the remaining 
obligations on the project will be satisfied and so economic benefits will flow to the Group. Full provision is made for losses on contracts in the period in which the 
loss is first foreseen. 
interest
Interest is recognised using the effective interest method, which calculates the amortised cost of a financial asset and allocates the interest income over the relevant period. 
The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying value of the 
financial asset.
Dividends
Dividends are recognised when the shareholders’ right to receive payment is established.
research and development
Expenditure on research (or the research phase of an internal project) is recognised as an expense in the period in which it is incurred. 
 Development costs incurred are capitalised only when all the following conditions are satisfied:
•	 	 Completion	of	the	intangible	asset	is	technically	feasible;
•	 	 The	Gr oup	intends	to	complete	the	intangible	asset	and	use	or	sell	it;
•	 	 The	Gr oup	has	the	ability	to	use	the	asset	or	sell	it;
•	 	 The	intangible	asset	will	generate	pr obable	futur e	economic	benefits.	Among	other	things,	this	r equir es	that	ther e	is	a	market	for	the	output	fr om	the	intangible	asset	
or for the intangible asset itself, or, if it is to be used internally, the asset will be used in generating such benefits;
•	 	 Ther e	ar e	adequate	technical,	financial	and	other	r esour ces	to	complete	the	development	and	to	use	or	sell	the	intangible	asset;	and
•	 	 The	expenditur e	attributable	to	the	intangible	asset	during	its	development	can	be	measur ed	r eliably .	
The cost of an internally generated intangible asset comprises all directly attributable costs necessary to create, produce, and prepare the intangible asset to be capable 
of operating in the manner intended by management. Directly attributable costs comprise employee salary and other employment costs incurred, on a time apportioned 
basis, on software development. The costs of internally generated software developments are recognised as intangible assets and are subsequently measured in the same 
way as externally acquired licences. However, until completion of the development project, the assets are subject to impairment testing only. Amortisation commences 
upon completion of the asset, and is shown within Selling and administrative expenses in the income statement. Brady plc Consolidated Financial Statements 24
NOTES TO THE FINANCIAL STATEMENTS
continued
Development costs not meeting the criteria for capitalisation are expensed as incurred. Careful judgement by the Directors is applied when deciding whether the 
recognition requirements for development costs have been met. This is necessary as the economic success of any product development is uncertain and may be subject 
to future technical problems at the time of recognition. Judgements are based on the information available at each balance sheet date. In addition, all internal activities 
related to the research and development of new software products are continuously monitored by the Directors. 
Property, plant and equipment
Property, plant and equipment are stated at cost, net of depreciation and any provision for impairment, if applicable. Depreciation is calculated to write off the depreciable 
amount (cost less residual value) of all property, plant and equipment by equal instalments over their expected useful economic lives. The rates generally applicable are:
•	 Impr ovements	to	pr operty	 25%	on	cost
•	 Computer	equipment	 33%	on	cost
•	 Computer	softwar e	 33%	on	cost
•	 Fixtur es	and	fittings	 25%	on	cost
Material residual value estimates are updated as required, but at least annually. For the purposes of assessing impairment, assets are grouped at the lowest levels for which 
there are separately identifiable cash flows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating 
unit level. An impairment loss is recognised for the amount by which the asset’s or cash-generating unit’s carrying amount exceeds its recoverable amount. The recoverable 
amount is the higher of fair value, reflecting market conditions less costs to sell, and value in use based on an internal discounted cash flow evaluation. 
taxation
Current tax is the tax currently payable based on taxable profit for the year.
Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference between the carrying 
amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill, nor on the initial recognition of an asset 
or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with shares in 
subsidiaries and joint ventures is not provided if reversal of these temporary differences can be controlled by the Group and it is probable that reversal will not occur in 
the foreseeable future. In addition, tax losses available to be carried forward as well as other income tax credits to the Group are assessed for recognition as deferred tax 
assets.
Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the underlying deductible temporary 
differences will be able to be offset against future taxable income. Current and deferred tax assets and liabilities are calculated at tax rates that are expected to apply to 
their respective period of realisation, provided they are enacted or substantively enacted at the balance sheet date. 
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate to items that are charged or 
credited directly to equity (such as the revaluation of land) in which case the related deferred tax is also charged or credited directly to equity.
financial assets
Financial assets are divided into the following categories: loans and receivables; available-for-sale financial assets; and held-to-maturity investments. Financial assets are 
assigned to the different categories by management on initial recognition, depending on the purpose for which they were acquired. The designation of financial assets is 
re-evaluated at every reporting date at which a choice of classification or accounting treatment is available.
All financial assets are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial assets are recognised at fair value plus 
transaction costs.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Trade receivables are classified 
as loans and receivables. Loans and receivables are measured subsequent to initial recognition at amortised cost using the effective interest method, less provision for 
impairment. Any change in their value through impairment or reversal of impairment is recognised in the income statement.
Provision against trade receivables is made when there is objective evidence that the Group will not be able to collect all amounts due to it in accordance with the original 
terms of those receivables. The amount of the write-down is determined as the difference between the asset’s carrying amount and the present value of estimated future 
cash flows.
Available-for-sale financial assets include non-derivative financial assets that are either designated as such or do not qualify for inclusion in any of the other categories 
of financial assets. All financial assets within this category are measured subsequently at fair value, with changes in value recognised in equity, through the statement 
of changes in equity. Gains and losses arising from investments classified as available-for-sale are recognised in the income statement when they are sold or when the 
investment is impaired. Brady plc Consolidated Financial Statements 25
In the case of impairment of available-for-sale assets, any loss previously recognised in equity is transferred to the income statement. Impairment losses recognised in the 
income statement on equity instruments are not reversed through the income statement. 
The designation of financial assets is re-evaluated and an assessment for impairment is undertaken at least at each balance sheet date.
financial liabilities
Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Group becomes a party to the contractual provisions of the instrument. 
All financial liabilities are recorded initially at fair value, net of direct issue costs.
At each balance sheet date all financial liabilities are recorded at amortised cost using the effective interest method, with interest-related charges recognised as an expense 
in finance cost in the income statement. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are charged to the income 
statement on an accruals basis using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the 
period in which they arise. 
A financial liability is de-recognised only when the obligation is extinguished, that is, when the obligation is discharged or cancelled or expires. 
foreign currencies
Transactions in foreign currencies are translated into the functional currency of the individual entity within the Group at the exchange rate ruling at the date of the 
transaction. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. All exchange differences are dealt 
with through the income statement. 
The assets and liabilities in the financial statements of foreign subsidiaries and associates and related goodwill are translated at the rate of exchange ruling at the balance 
sheet date. Income and expenses are translated at the actual exchange rate. The exchange differences arising from the retranslation of the opening net investment in 
subsidiaries and associates are taken directly to the foreign currency reserve in equity. On disposal of a foreign operation, the cumulative translation differences (including, 
if applicable, gains and losses on related hedges) are transferred to the income statement as part of the gain or loss on disposal.
The Group has taken advantage of the exemption of IFRS 1 and has deemed cumulative translation differences for all foreign operations to be nil at the date of transition 
to IFRS. The gain or loss on disposal of these operations excludes translation differences that arose before the date of transition to IFRS. 
employee benefits
Defined contribution pension scheme: The pension cost charged against operating profits is the contributions payable to the group personal pension scheme in respect of 
the accounting period. 
Short-term employee benefits, including holiday entitlement are included in current pension and other employee obligations at the undiscounted amount that the Group 
expects to pay as a result of the unused entitlement. 
leased assets
All leases are regarded as operating leases as the risks and rewards of ownership are not transferred. Payments made under leases are charged to the income statement on 
a straight-line basis over the lease term. Lease incentives are spread over the term of the lease. 
share options
All share-based payment arrangements granted that had not vested prior to 1 January 2006 are recognised in the financial statements. The Group operates a number 
of employee share schemes under which it makes equity-settled share-based payments to certain employees. None of the Group’s plans feature any options for a cash 
settlement. 
Where employees are rewarded using share-based payments, the fair values of employees’ services are determined by reference to the fair value of equity instruments 
issued by the Group. The fair value of these instruments (options) is determined using the binomial valuation model. The share-based payment is recognised as an expense 
in the income statement, together with a corresponding credit to a share-based payment reserve in equity. This expense is incurred on a straight-line basis based on the 
Group’s estimate of the number of shares that will vest. Estimates are subsequently revised if there is any indication that the number of share options expected to vest 
differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment is made to any expense recognised in prior 
periods if share options ultimately exercised are different to that estimated on vesting. 
Upon exercise of share options, the proceeds received net of any directly attributable transaction costs up to the nominal value of the shares issued are allocated to share 
capital with any excess being recorded in the share premium account. 
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments that are readily convertible into known 
amounts of cash and which are subject to an insignificant risk of changes in value. Brady plc Consolidated Financial Statements 26
NOTES TO THE FINANCIAL STATEMENTS
continued
equity
Equity comprises the following:
•	 	 “Shar e	capital”	r epr esents	the	nominal	value	of	equity	shar es;
•	 	 “Shar e	pr emium	account”	r epr esents	the	excess	over	nominal	value	of	the	fair	value	of	consideration	r eceived	for	equity	shar es,	net	of	expenses	of	the	shar e	issue;
•	 	 “	 Merger	r eserve”	r epr esents	the	merger	r eserve	set	up	in	r elation	to	the	accounting	for	the	acquisition	of	Colplan	Systems	Limited	in	2004	that	was	pr esent	under	UK	
GAAP and exempt from reclassification on transition to IFRS;
•	 	 “	 Capital	r eserve”	r epr esents	the	capital	r eserve	set	up	to	account	for	shar es	r edeemed	or	pur chased	wholly	out	of	distributable	pr ofits	that	was	pr esent	under	UK	
GAAP and exempt from reclassification on transition to IFRS;
•	 	 “Equity	r eserve”	r epr esents	the	r eserve	in	r elation	to	shar e	options	issued	but	not	yet	exer cised;
•	 	 “For eign	exchange	r eserve”	r epr esents	the	exchange	dif fer ence	on	consolidation	of	investments	in	overseas	subsidiaries;	and
•	 	 “Retained	ear nings”	r epr esents	r etained	pr ofits.
standards and interpretations in use but not yet effective
The Following new Standards and Interpretations, which are yet to become mandatory, have not been applied in the consolidated financial statements:
IAS 1 Presentation of Financial Statements (revised 2007) (effective 1 January 2009)
IAS 23 Borrowing Costs (revised 2007) (effective 1 January 2009)
Amendment to IAS 32 Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements - Puttable Financial Instruments and Obligations Arising on 
Liquidation (effective 1 January 2009)
IAS 27 Consolidated and Separate Financial Statements (Revised 2008) (effective 1 July 2009)
Amendment to IFRS 2 Share-based Payment - Vesting Conditions and Cancellations (effective 1 January 2009)
Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards and IAS 27 Consolidated and Separate Financial Statements - Costs of Investment 
in a Subsidiary, Jointly Controlled Entity or Associate (effective 1 January 2009)
Amendment to IAS 39 Financial Instruments: Recognition and Measurement - Eligible Hedged Items (effective 1 July 2009) 
Improvements to IFRSs (effective 1 January 2009 other than certain amendments effective 1 July 2009)
IFRS 3 Business Combinations (Revised 2008) (effective 1 July 2009)
IFRS 8 Operating Segments (effective 1 January 2009)
IFRIC 15 Agreements for the Construction of Real Estate (effective 1 January 2009)
IFRIC 16 Hedges of a Net Investment in a Foreign Operation (effective 1 October 2008)
IFRIC 17 Distributions of Non-cash Assets to Owners (effective 1 July 2009)
IFRIC 18 Transfers of Assets from Customers (effective prospectively for transfers on or after 1 July 2009)
Based on the Group’s current business model and accounting policies, management does not expect material impacts on the consolidated financial statements when the 
Interpretations become effective, except the revision to IAS 1 that will impact on the presentation of the financial statements. The Group does not intend to apply any of 
these pronouncements early. 
3. Critical accounting judgements and key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the Balance Sheet date, that have a risk of causing a material adjustment to 
the carrying values of assets and liabilities within the next financial year, are discussed below:
Valuation of share-based payments
In order to determine the value of share-based payments, management are required to make an estimation of the effects of non-transferability, exercise restrictions and 
behavioural conditions. The assumed share price volatility has been estimated at 30% (2007: 30%), which the Directors have judged to be reasonable by reference to 
companies in similar industries and stage of development. 
Valuation of assets and liabilities at fair value
Management has made a number of assumptions with regards to the models used to value assets and liabilities at their fair value at the year end. Valuation techniques 
commonly used by market practitioners are applied. In respect of the provision for bad and doubtful receivables management have made relevant judgements based on 
discussions with the account managers as regards the recoverability of trade receivables. The carrying amount of the provision for bad and doubtful debts at 31 December 
2008 was £nil (2007: £79,000). 
impairment of goodwill and other intangible assets
There are a number of assumptions management have considered in performing impairment reviews of goodwill and intangible assets, as determining whether goodwill 
is impaired requires an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the Directors 
to estimate the future cash flows expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value. The carrying amount of 
goodwill at 31 December 2008 was £243,000 (2007: £243,000) and of other intangibles was £247,000 (2007: £nil). Brady plc Consolidated Financial Statements 27
Customers’ practical acceptance of licence software
As detailed in note 2, licence fee revenues are recognised on practical acceptance of the software. The Group relies on acceptance terms as contractually agreed 
with customers in order to ascertain the timing of customer practical acceptance, thereby reducing the judgement required as ascertain the timing of licence revenue 
recognition. 
The Directors do not consider that there are any other critical accounting judgements and key sources of estimation uncertainty. 
4. segment reporting
The Group has one principal activity and makes sales to a variety of global destinations. An analysis of sales revenue by geographical market is given below: 
2008  
£’000
2007  
£’000
United Kingdom 2,592 2,350
Rest of Europe 528 750
North America 2,587 2,503
Rest of World 460 108
6,167 5,711
 
Within this one activity, the Group generates revenue from software licence sales, recurring maintenance fees and the provision of consulting and development services. 
Revenues can be analysed as below:
2008 
£’000
2007 
£’000
Software licence sales 2,087 2,282
Recurring maintenance fees 2,147 1,582
Consulting services 1,179 1,185
Development services 754 662
6,167 5,711
 
The management of the Group do not analyse the net assets according to revenue type. Brady plc Consolidated Financial Statements 28
NOTES TO THE FINANCIAL STATEMENTS
continued
5. Profit on ordinary activities before taxation
The profit on ordinary activities before taxation for the Group is stated after charging:
2008  
£’000
2007  
£’000
Research and development 1,040 1,205
Depreciation and impairment: 
  Property, plant and equipment, owned 140 103
  Impairment of goodwill – 71
  Impairment of long term financial assets 15 –
Reorganisation costs – 146
Auditors’ remuneration:
  Audit services 24 24
  Non-audit services 23 20
Share based payments expense 93 55
 
Fees payable to the Group’s Auditor for other services comprised tax services of £9,000 (2007: £8,000) and other services of £14,000 (2007: £12,000). 
6. finance income
The following amounts have been included in the income statement as finance income for the years presented: 
2008  
£’000
2007  
£’000
Interest income on financial assets carried at amortised cost 341 317 Brady plc Consolidated Financial Statements 29
7. employee remuneration
employee benefits expense
Expenses recognised for employee benefits is analysed below for the Group and the Company:
Staff costs, including Executive Directors, during the year were as follows:
group
2008  
£’000
2007  
£’000
Wages and salaries 3,505 2,897
Social security costs 358 300
Share based payments 93 55
Other pension costs 167 122
4,123 3,374
The average number of employees, including all Directors, during the year was as follows:
group
2008  
number
2007  
Number
Sales, services and customer support 23 21
Development 21 25
Finance and administration 3 3
Directors 8 7
55 56 Brady plc Consolidated Financial Statements 30
NOTES TO THE FINANCIAL STATEMENTS
continued
share-based employee remuneration
The number of ordinary shares for which Group employees hold options and the period for which the options are exercised are as follows:
Date of grant scheme t ype
Period when 
exercisable Price in pence
2008 
number
2007 
Number
22 July 1998 Approved 2000 - 2007 25p – 40,000
4 November 1998 Approved 2000 - 2007 25p – 50,000
24 December 1998 Approved 2001 - 2008 30p – 26,500
30 July 1999 Unapproved 1999 - 2009 30p 50,000 50,000 
02 March 2004 Unapproved 2005 - 2012 45p 144,444 144,444 
02 March 2004 Unapproved 2006 - 2012 45p 144,444 144,445 
02 March 2004 Unapproved 2007 - 2012 45p 144,445 144,445 
31 March 2004 Approved 2007 - 2009 45p 105,166 110,666
31 March 2004 EMI 2007 - 2009 45p 300,000 300,000 
31 March 2004 Unapproved 2004 - 2010 45p 50,000 50,000 
28 April 2004 Unapproved 2004 - 2010 45p 15,000 15,000 
28 April 2004 Unapproved 2005 - 2010 45p 35,000 35,000 
20 May 2004 Unapproved 2005 - 2012 81p 50,000 50,000 
01 August 2005 Unapproved 2005 - 2013 61p 150,000 150,000 
04 May 2006 Approved 2009 - 2011 25p 165,000 185,000 
04 May 2006 EMI 2009 - 2011 25p 570,000 670,000 
04 May 2006 Unapproved 2009 - 2011 25p 125,000 130,000 
04 May 2006 Unapproved 2006 - 2013 25p 200,000 200,000 
11 September 2006 Unapproved 2006 - 2010 27p 33,333 33,333 
13 December 2006 Unapproved 2009 - 2011 38.5p 60,000 60,000 
27 September 2007 Unapproved 2008 - 2014 41p 343,129 343,129 
27 September 2007 Unapproved 2009 - 2014 41p 343,130 343,130 
27 September 2007 Unapproved 2010 - 2014 41p 343,130 343,130 
27 September 2007 Unapproved 2011 - 2014 41p 343,131 343,131 
14 March 2008 2008 Scheme 2009 - 2015 44p 106,250 –
14 March 2008 2008 Scheme 2010 - 2015 44p 106,250 –
14 March 2008 2008 Scheme 2011 - 2015 44p 106,250 –
14 March 2008 2008 Scheme 2012 - 2015 44p 106,250 –
4,139,353 3,961,353 Brady plc Consolidated Financial Statements 31
Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:
2008 2007
Weighted average 
exercise price per 
share in pence options number
Weighted average 
exercise price per 
share in pence Options number
Outstanding at 1 January 38.0p 3,961,353 35.7p 2,810,333
Granted 44.0p 425,000 41.5p 1,372,520
Lapsed 30.9p (37,000) 27.0p (55,500)
Exercised 27.3p (210,000) 32.7p (166,000)
Outstanding at 31 December 39.2p 4,139,353 38.0p 3,961,353
Exercisable at 31 December 43.7p 1,764,962 43.1p 1,549,333
The weighted average share price at date of exercise of options exercised during the year was 40.3p (2007: 55.6p). The weighted average fair value of options issued 
during the year was 13.1p (2007: 3p).
At 31 December, Brady plc had the following outstanding options and exercise prices:
2008 2007
expiry dates
average 
exercise price 
per share in 
pence
options 
number
Weighted 
average 
remaining 
contractual life 
in months
Average 
exercise price 
per share in 
pence Options number
Weighted 
average 
remaining 
contractual life 
in months
2008 – – – 30.0p 116,500 10
2009 43.4p 455,166 3 43.4p 460,666 15
2010 40.5p 133,333 23 40.5p 133,333 35
2011 25.9p 920,000 30 25.8p 1,045,000 41
2012 51.6p 633,334 40 51.6p 633,334 52
2013 25.0p 200,000 53 25.0p 200,000 65
2014 41.5p 1,372,520 68 41.5p 1,372,520 80
2015 44.0p 425,000 75 – – –
At 31 December 39.2p 4,139,353 47 38.0p 3,961,353 54
Brady plc operates an Approved and an EMI share option scheme and has introduced a new scheme in the year, the 2008 Scheme. In addition, Brady plc has issuing a 
number of unapproved share options.
The Approved Share Option Scheme was set up on 11 June 1996 and was approved by the Inland Revenue on 16 July 1996. This scheme entitles the employee to 
subscribe for up to £30,000 of shares based on the price of the share at the date of grant. Brady plc Consolidated Financial Statements 32
NOTES TO THE FINANCIAL STATEMENTS
continued
Employees eligible to options under the EMI Share Option Scheme are restricted to a maximum of £100,000 of shares, based on the market price at the date of grant less 
any options already granted under the Approved Share Option Scheme.
The 2008 Scheme allows the issuance of approved and unapproved options. 
The maximum term under current arrangements ends on 13 March 2015. Upon vesting, each option allows the holder to purchase one ordinary share at the exercise price 
determined at the grant date.
Brady plc’s Articles of Association, as amended in July 2007, provide that Directors may not grant share options over more than 18% of the nominal value of the 
Company’s issued share capital without an ordinary resolution.
Share options held by Directors are listed in the Remuneration Report.
The closing mid-market price of the ordinary shares was 48.5 pence at 31 December 2008. The closing mid-market price ranged from 36 pence to 51.55 pence during the 
year.
Management have used a Binomial model to estimate the value of options granted in the current and prior years. Significant inputs into the model include the weighted 
average share price at the grant date, the exercise prices shown above, weighted average volatility of 30% (2007: 30%), dividend yield of nil, an expected option life of 
0-3 years, based on the terms of grant, and an annual risk-free interest rate of 5% (2007: 5%).
The key input to the model was the assumed share price volatility which management estimate to be 30% (2007: 30%), by reference to companies in similar industries 
and stage of development. As a relatively newly listed company, management do not consider that there is sufficient information on the volatility of the Company’s share 
price on which to base an estimate of expected future volatility. Also, the historical share price volatility is not considered to be a realistic indicator of future share price 
volatility. 
Pension and other employee obligations
The liabilities recognised for pensions and other employee remuneration in the balance sheet consist of the following:
2008 
 £’000
2007  
£’000
Current pension and other employee obligation
Current pension obligations 17 17
Other short-term employee obligations 89 87
106 104
8. Key management
Key management for the Group and Company is considered to be the Directors of the Group. Details of Directors’ remuneration are contained within the Remuneration 
Report on page 12. The interests of the Directors in the shares of the Company are detailed within the Directors’ Report. Brady plc Consolidated Financial Statements 33
9. income tax expense
The relationship between the expected tax expense based on the effective tax rate of the Group at 28.5% (2007: 30%) and the tax expense actually recognised in the 
income statement can be reconciled as follows:
2008 
£’000
2007  
£’000
Result for the year before taxation 1,039 639
Tax rate 28.5% 30%
Expected tax expense 296 192
Expenses not deductible for tax purposes 61 55
Differences between capital allowances and depreciation (33) (3)
Other temporary differences (35) (91)
Utilisation of tax losses – –
Current tax expense, net 289 153
Comprising:
Current tax charge for the year 289 153
Deferred tax expense – –
289 153
In June 2007, the UK government enacted a change in the main rate of corporation tax from 30% to 28%, with effect from 1 April 2008. During 2007 the Company 
received a tax refund of £115,000 in relation to R&D tax credits. 
10. earnings per share
The calculation of the basic earnings per share is based on the profits attributable to the shareholders of Brady plc divided by the weighted average number of shares in 
issue during the year. All earnings per share calculations relate to continuing operations of the Group.
Profits attributable 
to shareholders
Weighted average 
number of shares
Basic profit per 
share amount 
in pence
year ended 31 December 2008 750,000 27,519,550 2.73
Year ended 31 December 2007 486,000 26,742,316 1.82
The calculation of the diluted earnings per share is based on the profits attributable to the shareholders of Brady plc divided by the weighted average number of shares in 
issue during the year, as adjusted for dilutive share options. All earnings per share calculations relate to continuing operations of the Group. Brady plc Consolidated Financial Statements 34
NOTES TO THE FINANCIAL STATEMENTS
continued
Dilutive options
anti-dilutive 
options
Diluted profit per 
share amount in 
pence
year ended 31 December 2008 2,575,853 1,571,526 2.49
Year ended 31 December 2007 2,852,423 200,000 1.64
The reconciliation of average number of ordinary shares used for basic and diluted earnings per share is as below: 
2008 2007
Weighted average number of ordinary shares used for basic earnings per share 27,519,550 26,742,316
Weighted average number of ordinary shares under option 2,575,853 2,852,423
Weighted average number of ordinary shares used for diluted earnings per share 30,095,403 29,594,739
11. Dividends
2008  
£’000
2007 
£’000
Dividend on ordinary shares proposed after the year end 331 301
During 2008, Brady plc paid dividends of £301,000 to its equity shareholders (2007: £262,000). This represented a payment of 1.1 pence per share (2007: 1 pence per 
share). 
The Directors propose the payment of a dividend in 2009 of £331,000 equating to 1.2 pence per share (2007: £301,000 equating to 1.1 pence per share). As the 
distribution of dividends by the Company requires approval of the shareholders, no liability in this respect is recognised in the 2008 consolidated financial statements. No 
income tax consequences are expected to arise as a result of this transaction at the Group level.
12. Profit for the financial year
The parent Company has taken advantage of section 230 of the Companies Act 1985 and has not included its own income statement in these financial statements. The 
profit for the financial year was £696,000 (2007: £490,000). Brady plc Consolidated Financial Statements 35
13. goodwill
The main changes in the carrying amounts of goodwill in prior years result from the impairment of previously recognised goodwill. The net carrying amount of goodwill 
can be analysed as follows:
group
goodwill on 
consolidation 
£’000
Purchased 
goodwill 
£’000
total 
£’000
Gross carrying amount 1,107 90 1,197
Accumulated impairment (793) (90) (883)
Carrying amount at 1 January 2007 314 – 314
Gross carrying amount 1,107 90 1,197
Accumulated impairment (864) (90) (954)
Carrying amount at 31 December 2007 243 – 243
Gross carrying amount 1,107 90 1,197
Accumulated impairment (864) (90) (954)
Carrying amount at 31 December 2008 243 – 243
Changes in the net carrying amount of goodwill can be summarised as follows:
group
goodwill on 
consolidation 
£’000
Carrying amount at 1 January 2007 314
Impairment loss recognised (71)
Carrying amount at 31 December 2007 243
Impairment loss recognised –
Carrying amount at 31 December 2008 243
Subsequent to the annual impairment tests, the carrying value of goodwill is allocated to the following cash-generating unit: 
group
2008 
£’000
2007 
£’000
Opval product, following the acquisition of Colplan Systems Limited 243 243 Brady plc Consolidated Financial Statements 36
NOTES TO THE FINANCIAL STATEMENTS
continued
Company
Purchased 
goodwill 
£’000
Gross carrying amount 1,301
Accumulated impairment (898)
Carrying amount at 1 January 2007 403
Gross carrying amount 1,301
Accumulated impairment (964)
Carrying amount at 31 December 2007 337
Gross carrying amount 1,301
Accumulated impairment (964)
Carrying amount at 31 December 2008 337
Changes in the net carrying amount of goodwill can be summarised as follows:
Company
Purchased 
goodwill 
£’000
Carrying amount at 1 January 2007 403
Impairment loss recognised (66)
Carrying amount at 31 December 2007 and 31 December 2008 337
Subsequent to the annual impairment tests, the carrying value of goodwill is allocated to the following cash-generating unit: 
Company
2008 
£’000
2007 
£’000
Opval product, following the acquisition of Colplan Systems Limited 337 337
The recoverable amounts for the cash-generating unit given above were determined based on value-in-use calculations, at a level where there are largely independent cash 
inflows. Management prepares detailed five-year cashflow forecasts, with no terminal value, and determines a suitable interest rate in order to calculate the present value 
of such cashflows, which represents the recoverable amount. The interest rate used in the calculation was 15%. The principal assumption used in the forecasts have been 
the growth rate in relation to new licence revenues at 10% per annum, the continuance of existing maintenance revenue streams and current levels of resources required 
to support the business of this cash-generating unit. Any impairment loss is recognised for the amount by which the asset’s or cash-generating unit’s carrying amount 
exceeds its recoverable amount and this impairment loss is used to reduce the carrying amount of any goodwill allocated to that cash-generating unit. Brady plc Consolidated Financial Statements 37
Apart from the considerations in determining the value in use of the cash-generating unit described above, the management of the Group is not currently aware of any 
probable changes that would necessitate changes in its key estimates.
14. intangible assets
The net carrying amount of capitalised development can be analysed as follows:
group and Company 
Capitalised 
development 
costs 
£’000
Gross carrying amount –
Accumulated impairment –
Carrying amount at 1 January 2007 and 31 December 2007 –
Gross carrying amount 247
Accumulated impairment –
Carrying amount at 31 December 2008 247
Changes in the net carrying amount of capitalised development can be summarised as follows: 
group and Company
Capitalised 
development 
costs 
£’000
Carrying amount at 1 January 2007 and 31 December 2007 –
Addition in the year 247
Carrying amount at 31 December 2008 247
Subsequent to the annual impairment tests, the carrying value of capitalised development is allocated to the following cash-generating unit: 
group and Company
2008  
£’000
2007  
£’000
Trinity product 247 –
The recoverable amounts for the cash-generating unit given above were determined based on value-in-use calculations, at a level where there are largely independent 
cash inflows. The carrying value of the intangible fixed assets has been compared and justified by reference to the Group’s budget and financial projections for the twelve 
months following the balance sheet date and therefore there has been no requirement to prepare detailed five-year cashflow forecasts. Any impairment loss is recognised  Brady plc Consolidated Financial Statements 38
NOTES TO THE FINANCIAL STATEMENTS
continued
for the amount by which the asset’s or cash-generating unit’s carrying amount exceeds its recoverable amount and this impairment loss is used to reduce the carrying 
amount of any goodwill allocated to that cash-generating unit.
Apart from the considerations in determining the value in use of the cash-generating unit described above, the management of the Group is not currently aware of any 
probable changes that would necessitate changes in its key estimates.
15. long-term financial assets
The amounts recognised in the balance sheet relate to the following investment types:
long-term available-for-sale financial assets
group and Company
2008 
£’000
2007 
£’000
Participation in Brady Italia Srl – 15
The investment in Brady Italia Srl represents a participating interest only and there is no exercise of significant influence. There is no active market and so the investment 
cannot be valued at quoted price. Therefore the investment would ordinarily be valued using a valuation technique to establish the fair value of the investment. However, 
no market interest rate is known for this investment or similar investments and so, given the immaterial nature of the investment, the investment has been written off in 
the year.
16. investments
The amounts recognised in the Company’s balance sheet relate to the following:
shares in group 
undertakings 
£’000
Cost:
At 1 January 2007, 1 January 2008 and at 31 December 2008 56
Amortisation:
At 1 January 2007, 1 January 2008 and 31 December 2008 –
Net book amount:
at 31 December 2008 and 31 December 2007 56 Brady plc Consolidated Financial Statements 39
subsidiary
Country of 
registration
Class of share 
capital held
Proportion held by 
the Company nature of business
Brady USA, Inc. US Ordinary 100%
Software services 
provider
Brady Canada, Inc. Canada Ordinary 100% Dormant
Tradesoft BV Holland Ordinary 100% Dormant
Colplan Systems Limited UK Ordinary 100% Dormant
Brady Italia Srl Italy Ordinary 40% Software vendor
 
17. Property, plant and equipment
The amounts recognised in the Group balance sheet at 31 December 2008 relate to the following:
group 
improvements to 
property 
£’000
fixtures 
and fittings 
£’000
Computer 
equipment and 
software 
£’000
total 
£’000
Cost:
At 1 January 2008 129 73 688 890
Additions – 3 151 154
Disposals – – (84) (84)
at 31 December 2008 129 76 755 960
Depreciation:
At 1 January 2008 55 21 527 603
Provided in the year 21 16 103 140
Eliminated on disposals – – (84) (84)
at 31 December 2008 76 37 546 659
Net book amount:
at 31 December 2008 53 39 209 301
at 31 December 2007 74 52 161 287 Brady plc Consolidated Financial Statements 40
NOTES TO THE FINANCIAL STATEMENTS
continued
Summaries of carrying amounts are shown below:
group 
improvements 
to property  
£’000
fixtures 
and fittings £’000
Computer 
equipment and 
software 
£’000
total 
£’000
Gross carrying amount 51 74 569 694
Accumulated depreciation and 
impairment (47) (68) (440) (555)
Carrying amount at 1 January 2007 4 6 129 139
Gross carrying amount 129 73 688 890
Accumulated depreciation and 
impairment (55) (21) (527) (603)
Carrying amount at 31 December 2007 74 52 161 287
Gross carrying amount 129 76 755 960
Accumulated depreciation and 
impairment (76) (37) (546) (659)
Carrying amount at 31 December 
2008 53 39 209 301
The amounts recognised in the Company balance sheet at 31 December 2008 relate to the following:
Company 
improvements to 
property 
£’000
fixtures 
and fittings 
£’000
Computer 
equipment and 
software 
£’000
total 
£’000
Cost:
At 1 January 2008 129 73 688 890
Additions – 3 147 150
Disposals – – (84) (84)
at 31 December 2008 129 76 751 956
Depreciation:
At 1 January 2008 55 21 527 603
Provided in the year 21 16 103 140
Eliminated on disposals – – (84) (84)
at 31 December 2008 76 37 546 659
Net book amount:
at 31 December 2008 53 39 205 297
at 31 December 2007 74 52 161 287 Brady plc Consolidated Financial Statements 41
Summaries of carrying amounts are shown below:
Company
improvements 
to property 
£’000
fixtures 
and fittings 
£’000
Computer 
equipment and 
software 
£’000 total £’000
Gross carrying amount 51 74 569 694
Accumulated depreciation and 
impairment (47) (68) (440) (555)
Carrying amount at 1 January 2007 4 6 129 139
Gross carrying amount 129 73 688 890
Accumulated depreciation and 
impairment (55) (21) (527) (603)
Carrying amount at 31 December 2007 74 52 161 287
Gross carrying amount 129 76 751 956
Accumulated depreciation and 
impairment (76) (37) (546) (659)
Carrying amount at 31 December 
2008 53 39 205 297 Brady plc Consolidated Financial Statements 42
NOTES TO THE FINANCIAL STATEMENTS
continued
The amounts recognised in the Group and Company balance sheet at 31 December 2007 relate to the following:
group and Company 
 
 
improvements 
to property 
£’000
fixtures 
and fittings 
£’000
Computer 
equipment and 
software 
£’000
total 
£’000
Cost:
At 1 January 2007 51 74 569 694
Additions 78 53 120 251
Disposals – (54) (1) (55)
At 31 December 2007 129 73 688 890
Depreciation:
At 1 January 2007 47 68 440 555
Provided in the year 8 7 88 103
Eliminated on disposals – (54) (1) (55)
At 31 December 2007 76 21 527 603
Net book amount:
at 31 December 2007 74 52 161 287
at 31 December 2006 4 6 129 139
18. Deferred tax 
There were no deferred tax assets or liabilities recognised by the Group or the Company at 31 December 2008 or 31 December 2007.
19. trade and other receivables
group Company
2008 
£’000
2007 
£’000
2008 
£’000
2007 
£’000
Trade receivables 1,373 1,202 1,359 1,188
Other receivables 6 19 5 18
Prepayments and accrued income 372 810 335 810
1,751 2,031 1,699 2,016
All amounts are short-term. The carrying value of trade receivables is considered a reasonable approximation of fair value. All of the receivables have been reviewed for 
indicators of impairment. No provision (2007: £79,000) has been recorded accordingly in the Group and Company financial statements.  Brady plc Consolidated Financial Statements 43
In addition, some of the unimpaired trade receivables are past due as at the reporting date. The age of financial assets past due but not impaired is as follows:
group Company
2008 
£’000
2007 
£’000
2008 
£’000
2007 
£’000
Not more than 1 month 396 360 396 360
More than one month but 
not more than 3 months 5 3 5 3
More than 3 months but not 
more than 6 months – – – –
More than 6 months but not 
more than 1 year – – – –
More than one year – – – –
401 363 401 363
20. Cash and cash equivalents
Cash and cash equivalents include the following components:
group Company
2008 
£’000
2007 
£’000
2008 
£’000
2007 
£’000
Cash at bank and in hand 7,828 5,957 7,817 5,943
21. trade and other payables
group Company
2008 
£’000
2007 
£’000
2008 
£’000
2007 
£’000
Trade payables 394 170 254 159
Amounts owed to Group undertakings – – 211 75
Social security and other taxes 158 197 158 197
Other payables 127 244 83 244
Accruals and deferred income 2,247 1,167 2,293 1,167
2,926 1,778 2,999 1,842 Brady plc Consolidated Financial Statements 44
NOTES TO THE FINANCIAL STATEMENTS
continued
All amounts are short-term. The carrying values are considered to be a reasonable approximation of fair value. The amount of deferred service income included in the 
above has been estimated by management after consideration of the services performed and of the service arrangements entered into.
22. equity
share capital
2008 
£’000
2007 
£’000
Ordinary shares of 1p each:
Authorised:
50,000,000 shares 500 500
Allotted, called up and fully paid:
Beginning of the year 274 262
Issued in the year 2 12
End of the year: 27,585,016 (2007: 27,375,016) shares 276 274
allotments during the year
The Company made allotments of 210,000 ordinary 1p shares during the year on the exercise of various share options. This increased the Company’s ordinary shares 
issued and fully paid at the end of the year by 210,000 (2007: 1,166,000).
share premium account
An amount of £55,000 (2007: £641,000), being the difference between the total consideration of £57,000 and the total nominal value of £2,000 for the shares issued 
during the year had been included in the share premium account.
23. leases
the group and the Company
The Group and Company had no finance lease arrangements. The Group’s and Company’s minimum operating lease payments are as follows:
Within 1 year 
£’000
Between  
1 and 5 years 
£’000
after 
more than 
5 years 
£’000
total 
£’000
31 December 2007 95 475 24 594
31 December 2008 95 404 – 499
Lease payments recognised as an expense during the year amount to £95,000 (2007: £95,000). No sublease income is expected as all assets held under lease agreements 
are used exclusively by the Group.
The rental contract for the office building rented since 1993 at 281 Cambridge Science Park, Cambridge has a lease which expires in 2014. In December 2008, the Group 
renewed an agreement, with a twelve-month minimum commitment, in relation to serviced office premises in Cannon Street, London.  Brady plc Consolidated Financial Statements 45
23. leases (continued)
Operating lease agreements do not contain any contingent rent clauses. None of the operating lease agreements contain renewal or purchase options or escalation clauses 
or any restrictions regarding further leasing. 
24. related party transactions and controlling related party
The Group’s related parties comprise its Board of Directors and its subsidiaries. Unless otherwise stated, none of the transactions incorporate special terms and conditions. 
The Company contracts with its subsidiary, Brady USA Inc. in relation to the provision of support services, all transactions being on an arms-length basis.
The Directors are the Group’s controlling and ultimate controlling related parties by virtue of their shareholding and directorships in Brady plc.
25. Contingent liabilities
There are no material contingent liabilities subsisting at 31 December 2008 or 31 December 2007.
26. Capital commitments
Neither the Group nor the Company had any capital commitments at 31 December 2008 or 31 December 2007.
27. risk management objectives and policies
financial instruments
The Group uses various financial instruments; these include cash and bank deposits and various items such as trade receivables and trade payables that arise directly from 
its operations. The main purpose of these financial instruments is to raise finance for the Group’s operations.
The main risks arising from the Group’s financial instruments are interest rate risk, liquidity risk, credit risk and currency risk. The Board reviews and agrees policies for 
managing each of these risks and they are summarised below.
interest rate risk
The Group’s exposure to market risk for the changes in interest rates relates primarily to the Group’s bank deposits. The exposure to interest rate fluctuations on its 
deposits is managed by placing these at fixed rates of interest with varying maturity dates.
The aggregate amount of cash deposits on fixed interest terms as at 31 December 2008 was £3,071,000 (2007: £2,000,000). The weighted average fixed interest rate 
on the cash deposits was 4.94% (2007: 6.70%) and the weighted average period for which the rate is fixed is 1 month (2007: 1 month). The aggregate amount of cash 
deposits on variable interest terms as at 31 December 2008 was £4,743,000 (2007: £3,957,000). For cash deposits held with the Group’s clearing bankers, the variable 
rate is indexed to Barclays Bank plc’s and Lloyds Banking Group plc’s base rates and for cash deposits held within liquidity funds run by Barclays Global Investors and 
Scottish Widows Investment Partnership, the variable rate is derived from the funds’ performance.
The following table illustrates the sensitivity of the net profit for the year and equity to a possible change in interest rates of +3% and -3%, with effect from the beginning 
of the year.
2008 2007
+3% 
£’000
–3% 
£’000
+1% 
£’000
–1% 
£’000
Net profit for the year – Group 899 601 522 450
Equity – Group 7,109 6,811 6,416 6,344
Net profit for the year – Company 845 547 526 454
Equity – Company 7,131 6,833 6,473 6,401 Brady plc Consolidated Financial Statements 46
NOTES TO THE FINANCIAL STATEMENTS
continued
liquidity risk
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs.
 As at 31 December 2008, the Group and Company’s financial liabilities have contractual maturities as summarised below: 
Current non-current
Within 
6 months 
£’000
Between 
6 and 12 
months 
£’000
Between 
1 and 5 years 
£’000
later 
than 5 years 
£’000
Trade and other payables – Group 2,926 484 – –
Trade and other payables – Company 2,999 472 – –
This compares to the maturity of the Group’s and Company’s financial liabilities in the previous reporting year as summarised below: 
Current non-current
Within 
6 months 
£’000
Between 
6 and 12 
months 
£’000
Between 
1 and 5 years 
£’000
later 
than 5 years 
£’000
Trade and other payables - Group 1,778 375 – –
Trade and other payables - Company 1,842 375 – –
Credit risk
The Group and Company’s exposure to credit risk is limited to the carrying amount of financial assets recognised at the balance sheet date, as summarised below:
2008 
£’000
2007 
£’000
Available-for-sale financial assets – 15
Trade and other receivables 1,751 2,031
1,751 2,046
The Group’s management considers that all the above financial assets that are not impaired for each of the balance sheet dates under review are of good credit quality, 
including those that are past due. See note 19 for fuller information of financial assets that are past due. Brady plc Consolidated Financial Statements 47
The Group’s principal financial assets are cash deposits and trade receivables.
In order to manage credit risk, the Directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed 
on a regular basis in conjunction with debt ageing and collection history.
The Group and Company have no un-drawn committed overdraft facilities.
Currency risk
The Group and Company are exposed to transaction foreign exchange risk. Transaction exposures, including those associated with forecast transactions, are managed 
through the use of bank accounts held in foreign currencies. The Group and Company’s trade receivables as at 31 December 2008 include an amount of £109,000 (2007: 
£137,000) denominated in US Dollars. As at 31 December 2008, cash at bank and in hand included £1,066,000 (2007: £56,000) denominated in US Dollars, and £14,000 
(2007: £65,000) denominated in Euros. 
The following table illustrates the sensitivity of the net profit for the year and equity in regards to the financial assets and financial liabilities and the Pound Sterling to US 
Dollar exchange rate and Pound Sterling to Euro exchange rate.
It assumes a +/- 20% change of the Pound Sterling to US Dollar exchange rate for 2008 (2007: +/- 5%) and a +/- 20% change of the Pound Sterling to Euro exchange 
rate for 2008 (2007: +/- 5%). The sensitivity analysis is based on the Group’s foreign currency financial instruments held at each balance sheet date.
If the Pound Sterling had strengthened against the US Dollar and Euro by 20% then this would have had the following impact:
2008 2007
Us Dollar 
£’000
euro 
£’000
US Dollar 
£’000
Euro 
£’000
Net profit for the year - Group 581 748 476 483
Equity - Group 6,791 6,958 6,370 6,377
Net profit for the year - Company 527 694 480 487
Equity - Company 6,813 6,980 6,427 6,434
If the Pound Sterling had weakened against the US Dollar and Euro by 20% then this would have had the following impact:
2008 2007
Us Dollar 
£’000
euro 
£’000
US Dollar 
£’000
Euro 
£’000
Net profit for the year - Group 919 752 496 489
Equity - Group 7,129 6,962 6,390 6,383
Net profit for the year - Company 865 698 500 493
Equity - Company 7,151 6,984 6,447 6,440 Brady plc Consolidated Financial Statements 48
NOTES TO THE FINANCIAL STATEMENTS
continued
28. summary of financial assets and liabilities by category
The carrying amounts of the assets and liabilities as recognised at the balance sheet date of the years under review may also be categorised as follows:
group Company
2008 
£’000
2007 
£’000
2008 
£’000
2007 
£’000
non-current assets
Available-for-sale financial assets – 15 – 15
Current assets
Trade and other receivables, loans and 
receivables 1,872 2,031 1,699 2,016
Current liabilities
Trade payables, financial liabilities 
measured at amortised cost 3,531 2,153 3,471 2,217
3,531 2,153 3,471 2,217
29. Capital management policies and procedures
The Group and Company’s capital management objectives are to ensure the Group and Company’s ability to continue as a going concern and to provide an adequate 
return to shareholders, by pricing its offerings commensurately with the level of risk.
Although Brady plc is not constrained by any externally imposed capital requirements, its goal is to maximise its capital-to-overall financing structure ratio.
The Group and Company monitor capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of the balance sheet. 
The Group and Company set the amount of capital in proportion to its overall financing structure and manages its capital structure and makes adjustments to it in the 
light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group and Company 
may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets. Capital for the reporting years under review is 
summarised as follows:
group Company
2008 
£’000
2007 
£’000
2008 
£’000
2007 
£’000
Capital
Total equity 6,960 6,380 6,982 6,437
Less cash and cash equivalents 7,828 5,957 7,817 5,943
(868) 423 (835) 494
overall financing
Total equity 6,960 6,380 6,982 6,437
Plus borrowings – – – –
6,960 6,380 6,982 6,437
Capital-to-overall financing ratio 1:(8) 1:15 1:(8) 1:13 Brady plc Consolidated Financial Statements 49
30. acquisition
On 9 January 2009 the Company acquired 100% of the ordinary share capital of Commodities Software (UK) Limited and its wholly owned subsidiary Coastdata Limited 
(together “Comsoft”), both UK based companies providing software for the risk management and administration of raw materials or ‘concentrates’ for the metals market. 
Comsoft has been operating since 1994 and its clients are based in Europe and North America. The Company has not yet reviewed the draft completion accounts it has 
received but the following table sets out the estimated book value and estimated fair value to the Group of the assets and liabilities acquired.
estimated
book 
value 
£’000
estimated 
fair value  
adjustments 
£’000
estimated 
fair value to 
the group 
£’000
Property, plant and equipment 2 – 2
Intangible assets 269 (269) –
Cash and cash equivalent 504 – 504
Trade and other receivables 304 (108) 196
Trade and other payables (391) – (391)
net identifiable assets and liabilities 688 (377) 311
Consideration:
Cash paid and estimated to be paid 1,500
Cash estimated to be paid in relation to surplus working capital 417
Direct costs incurred 169
Estimated intangible assets and goodwill on acquisition  1,775
The Group has not yet finalised the fair valuation of certain intangible assets acquired. The estimated fair value adjustments included above were made to 
recognise the anticipated adjustments in relation to the elimination of the investment in a subsidiary company on consolidation and the alignment of Comsoft’s 
revenue recognition policies with those of the Group.    
31. Post balance sheet events
Other than the acquired Commodities Software (UK) Limited (“Comsoft”), on 9 January 2009 there were no post balance sheet events. 
32. authorisation of financial statements
No adjusting or significant non-adjusting events have occurred between the balance sheet date and the date of authorisation on 10 March 2009 by the Board. NOTICE OF ANNUAL GENERAL MEETING
Brady plc Consolidated Financial Statements 50
Notice is herby given that the Annual General Meeting of Brady plc will be held at 
60 Cannon Street, London, EC4N 6JP on Thursday 30 April 2008 at midday for the 
following purposes:
ordinary resolutions:
1.  To receive and consider the Annual Report and audited financial statements 
for the year ended 31 December 2008, the Directors’ Report and the Auditors’ 
Report on those financial statements.
2.  T o declare a dividend recommended by the Directors of 1.2 pence per ordinary share 
for the year ended 31 December 2008 to be paid on 26 May 2009 to members 
whose names appear on the register at the close of business on 24 April 2009.
3.  To approve the Remuneration Report.
4.  To re-appoint as Director Robert Brady who retires by rotation under the 
Articles of Association. 
5.  To re-appoint as Director Brian Collins who retires by rotation under the 
Articles of Association.
6.  To re-appoint as Auditors Grant Thornton UK LLP to hold office from the 
conclusion of this Annual General Meeting until the conclusion of the next 
general meeting of the Company at which financial statements are laid and to 
authorise the Directors to determine their remuneration.
special resolution:
7.  That the Directors be and are hereby authorised and empowered pursuant to 
Section 95 of the Companies Act 1985 (the “Act”) to allot equity securities 
(within the meaning of Section 94(2) of the Act) for cash pursuant to the 
authority already conferred as if Section 89(1) of the Act did not apply to any 
such allotment, provided that this power shall be limited to the allotment of 
equity securities:
 a)  in connection with an offer of such securities by way of rights to holders 
of ordinary shares in proportion (as nearly as may be practicable) to their 
respective holdings of such shares, but subject to such exclusions or 
other arrangements as the Directors may deem necessary or expedient in 
relation to fractional entitlements or any legal or practical problems under 
the laws of any territory, or the requirements of any regulatory body or 
stock-exchange;
 b)  otherwise than pursuant to sub-paragraph (a) above up to an aggregate 
nominal amount of £28,000 of the authorised but unissued share capital 
of the Company,
and shall expire on the earlier of 15 months from the date hereof and the 
conclusion of the next Annual General Meeting of the Company after the passing 
of this resolution save that the Company may, before such expiry make an offer or 
agreement which would or might require equity securities to be allotted after such 
expiry and the directors may allot equity securities in pursuance of any such offer or 
agreement notwithstanding that the power conferred hereby has expired.
By order of the Board
tony ratcliffe
Company secretary
10 March 2009
notes:
1.  A shareholder entitled to attend and vote at the Annual General Meeting is also entitled 
to appoint one or more proxies to attend and, on a poll, vote instead of him/her. The proxy 
need not be a shareholder of the Company.
2.  To be effective, the instrument appointing a proxy and any authority under which it is 
executed must be deposited at the offices of Equiniti, SEA 10846, Aspect House, Spencer 
Road, Lancing, BN99 6ZL not less than 48 hours before the time for holding the meeting. 
Completion and return of the Form of Proxy will not preclude shareholders from attending 
and voting at the Annual General Meeting.
3.  For the purposes of determining who is entitled to attend or vote (whether on a poll or 
otherwise) at the AGM a person must be entered on the register of members by 6.00pm 
on 28 April 2009 and shall be entitled to vote only those shares registered in that person’s 
name at that time. Any changes to entries on the register of members after 6.00pm on 28 
April 2009 shall be disregarded in determining the rights of any person to attend or vote at 
the Annual General Meeting.
4.  The register of interests of the Directors and their families in the issued share capital of the 
Company and copies of the Directors’ service contracts will be available for inspection at 
the registered office of the Company during usual business hours (Saturdays, Sundays, and 
public holidays excepted) from the date of this Notice until the conclusion of the Annual 
General Meeting. Brady plc Consolidated Financial Statements 51
FORM OF PROXY
I/We (Name in full) ________________________________________________________________________________________________________________________________
of ______________________________________________________________________________________________________________________________________________
being (a) shareholder/(s) of Brady plc hereby appoint the Chairman of the Annual General Meeting or
________________________________________________________________________________________________________________________________________________
as my/our proxy to vote for me/us in relation to  ordinary shares of the Company and on my/our behalf at the Annual General Meeting of the 
Company to be held at 60 Cannon Street, London, EC4N 6JP on Thursday 30 April 2009 at midday.
Please indicate with an “X” in the space below how you wish your vote to be cast. In the absence of any specific direction, and on any other resolution or motion put to 
the Annual General Meeting, the proxy will, on a poll, vote or abstain as the proxy thinks fit.
resolUtion for against
Vote 
WitHHelD
1.  To receive the Annual Report and audited financial statements for the year ended 31 December 2008.
2. To declare a dividend of 1.2 pence per ordinary share
3. To approve the Remuneration Report.   
4. To re-appoint Robert Brady as a Director.  
5. To re-appoint Brian Collins as a Director.
6.  To re-appoint Grant Thornton UK LLP as Auditors.
7.  To authorise the Directors to allot such relevant securities subject to arrangements as the Directors may 
deem necessary
Please tick here if this proxy appointment is one of multiple appointments being made 
Signature(s)__________________________________________________________________ Date___________________________2009
 __________________________________________________________________
notes
1.  To be valid, this Form of Proxy, duly completed, must be deposited at the offices of Equiniti, SEA 10846, Aspect House, Spencer Road, Lancing, BN99 6ZL, not less than 48 hours before the time 
appointed for the Annual General Meeting.
2.  In case of joint holders, only one signature is required.
3.  In the case of a Corporation, this Form of Proxy must be executed under its common seal or signed on its behalf by an attorney or officer duly authorised.
4.  The Vote Withheld column on this Form of Proxy is provided to enable you to abstain on any particular resolution. However, a vote withheld is note a vote in law and will not be counted in the 
proportion of votes ‘For’ or ‘Against’ a resolution. 
5.  Any alteration made to this Form of Proxy must be initialled.
6.  Completion and return of a Form of Proxy will not preclude shareholders from attending and voting in person should they subsequently decide to do so.  FORM OF PROXY
Company Registration Number: 2164768
Registered Office:  281 Cambridge Science Park 
Milton Road 
Cambridge  
CB4 0WE
Directors:  Paul Fullagar (Non-Executive Chairman) 
Geoffrey Bicknell (Non-Executive) 
Patrick Brazel (Non-Executive) 
Peter Harverson (Non-Executive) 
Gavin Lavelle (Chief Executive Officer) 
Robert Brady (Chief Technical Officer) 
Brian Collins (Product Management Director) 
Tony Ratcliffe (Finance Director)
Secretary: Tony Ratcliffe
Bankers:  Barclays Bank plc 
Mortlock House 
Vision Park 
Histon 
Cambridge 
CB4 9DE
Nominated Adviser:  Oriel Securities Ltd 
125 Wood Street 
London 
EC2V 7AN
Registrars:  Equiniti 
SEA 10846 
Aspect House 
Spencer Road 
Lancing 
BN99 6ZL
Solicitors: K&L Gates Taylor Vinters
 110 Cannon Street Merlin Place
 London Milton Road
 EC4N 6AR Cambridge
  CB4 0DP
Auditors:  Grant Thornton UK LLP 
Byron House 
Cambridge Business Park 
Cowley Road 
Cambridge 
CB4 0WZ
Financial Calendar 2009: Annual General Meeting 30 April 2009
 Interim Results (provisional) September 2009
 Preliminary Results (provisional) March 2010 Head office
281 Cambridge Science Park 
Milton Road 
Cambridge CB4 0WE 
United Kingdom
Tel: +44 (0)1223 479479 
Fax +44 (0)1223 472510
london office
60 Cannon Street 
London EC4N 6NP 
United Kingdom
Tel: +44 (0)20 7002 1068 
Fax: +44 (0)20 7002 1100
Paris office
Tel: +33 145 26 5937
new york office
Tel: +1 203 972 1900 
Fax: +1 203 972 1901
singapore office
Tel: +65 6725 6503 
Fax: +65 6725 6262
email: info@bradyplc.com
www.bradyplc.com