Annual Report and Accounts 2009
Growth
Support
Service
Partnership
www.braveheartinvestmentgroup.co.uk
The Cherrybank Centre
Cherrybank Gardens
Perth
PH2 0PF
United Kingdom
mail@braveheart-ventures.co.uk
T: +44 (0)1738 587555
F: +44 (0)1738 587666
Braveheart Investment Group Annual Report and Accounts 2009 Company Information
Directors 
Garry S Watson OBE CA, Chairman
(n) (r)
Geoffrey C B Thomson, Chief Executive Officer
Carolyn Smith BA Hons ACIS, Chief Investment Officer 
Colin C Grant BCom CA, Chief Financial Officer (appointed 15 October 2008)
Edward B Cunningham CBE, Non-executive Director
(a) (n) (r)
J Kenneth Brown BA CA, Non-executive Director
(a) (r) 
Jeremy H Delmar-Morgan MA MSI, Non-executive Director (appointed 3 June 2008)
(a)
A L A Shonaig Macpherson CBE FRSE Non-executive Director (resigned 10 September 2008)
(r)
Donald I Turner CA Non-executive Director (resigned 10 September 2008)
(a)
(a) Member of Audit and Risk Management Committee
(n) Member of Nominations Committee
(r) Member of Remuneration Committee
Secretary 
Colin C Grant BCom CA
Company Registration Number 
SC247376
Registered Office 
The Cherrybank Centre
Cherrybank Gardens
Perth
PH2 0PF
Telephone +44 (0) 1738 587555 
Website 
www.braveheartinvestmentgroup.co.uk
Advisers 
Registrar   Principal Bankers 
Capita Registrars  Bank of Scotland
Northern House  110 St Vincent Street 
Woodsome Park  Glasgow
Fenay Bridge  G2 5ER
Huddersfield
HD8 0LA
 
Solicitors   Solicitors
Semple Fraser LLP  Maclay Murray & Spens LLP
80 George Street  Quartermile One 
Edinburgh  15 Lauriston Place
EH2 3BU   Edinburgh 
    EH3 6EP
Auditors   Nominated Adviser and Broker     
Grant Thornton UK LLP  Seymour Pierce Limited
1-4 Atholl Crescent  20 Old Bailey
Edinburgh   London 
EH3 8LQ   EC4M 7EN  
57
Braveheart was founded in 1997 by a small group of 
investors in order to encourage and syndicate investments  
in privately held companies that offered opportunities  
for significant growth. 
Twelve years on, Braveheart is a public company with: 
• 	 	 A 	 d e m o n s t r a b l e 	 t r a c k 	 r e c o r d 	 i n 	 e a r l y 	 s t a g e 	 t e c h n o l o g y	
investing
• 	 M a r k e t 	 l e a d i n g 	 i n v e s t m e n t 	 r e t u r n s	
• 	 	 E s t a b l i s h e d 	 d e a l 	 fl o w 	 a n d 	 e x c l u s i v e 	 a c c e s s 	 t o 	 i n t e l l e c t u a l	
property
•	 	 A 	 c l i e n t 	 b a s e 	 o f 	 h i g h 	 n e t 	 w o rt h 	 i n v e s t o r s
• 	 	 S e rv i c e 	 o f f e r i n g s 	 o f 	 b e s p o k e 	 E I S 	 p o r t f o l i o s , 	 f u n d	
management, investment facilitation and management 
services
•	 	 A 	 d i r e ct l y 	 h e l d 	 p o rt f o l i o 	 o f 	 i n v e s t m e n t s 	 i n 	 2 8 	 c o m p a n i e s	
•	 A 	 s t r o n g 	 b a l a n c e 	 s h e e t 	 w i t h 	 c a s h 	 b a l a n c e s 	 o f 	 £ 3 . 2 2 m
•	 O ffi c e s 	 i n 	 P e rt h , 	 L o n d o n 	 a n d 	 Y o r ks h i r e
About Braveheart
Our business is based on the 
following principles: 
Growth
Support
Service 
Partnership 
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009
Highlights
Operational
Opening of London office •	
Appointments of CFO and Director of Marketing •	
Establishment of commercialisation partnership with the University of Aberdeen •	
First close of Strathclyde Innovation Fund and co-investment partners at £4.48m •	
Further funding of £2.77m by the Group and its clients made in 16 portfolio companies •	
Client exit portfolio showing an internal rate of return of 33% •	
Overall client portfolio (being both realised and unrealised investments) showing  •	
an internal rate of return of 24% 
 
Financial
Loss from investment management operations before net movement  •	
on the revaluation of investments of £977,000 (2008: £42,000)
Loss before tax of £1.26m (2008: profit of £106,000) •	
Cash balances of £3.22m (2008: £4.81m) •	
Operational cash outflow before investments of £523,000 (2008: £501,000) •	
Net assets per share of 46.03p (2008: 54.80p) •	
 
Post Period End
On 8 June 2009 the Group announced the acquisition of Inkopo Ltd. This acquisition, •	
based principally on an earn-out consideration, gives the Group an established 
presence in Yorkshire, an additional revenue stream and further complementary 
income from investment facilitation and management activities. 
£2.77m
Further funding in 16 portfolio 
companies
24%
Internal rate of return  
of client portfolio
Overview of our Business 
Highlights 1
Chairman’s Statement 2
Business Review 
Chief Executive Officer’s Report 4
Chief Financial Officer’s Report 6
Chief Investment Officer’s Report  8
Our Portfolio: Featured Investments  11
Governance 
Directors’ Report 15
Board of Directors 18
Corporate Governance Statement 20
Directors’ Remuneration Report 23
Independent Auditors’ Report 26
Accounts and Notes  
Group Income Statement 27
Group Balance Sheet 28
Company Balance Sheet 29
Group Cash Flow Statement 30
Company Cash Flow Statement 31
Statement of Changes in Equity  32
Notes to the Financial Statements 33
Notice of Annual General Meeting 53
Company Information 57
Overview of our Business 1 BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009
I have pleasure in presenting 
the results of Braveheart 
Investment Group for the 
year ended 31 March 2009.
Financial Environment
Like most AIM-listed technology and  
financial stocks, Braveheart had a tough  
year as problems in the financial markets 
unfolded. Market volatility and shareholder 
nervousness, which had been apparent at the 
start of the year, were rapidly compounded  
by the credit crunch, deteriorating property 
markets, and a recession whose length and 
depth still remains uncertain. As the business 
environment deteriorated we experienced 
reduced client appetite for investment with  
a consequent reduction in deal fees from 
both clients and portfolio companies. 
While our financial results reflect the current 
environment, your Board has responded 
positively to both challenges and opportunities 
by laying the foundation for future growth 
through establishing a broader geographical 
footprint and positioning the Group for 
expansion. At the same time, a strong  
balance sheet has been maintained.
Throughout these difficult times our priority 
has been to ensure that our portfolio 
companies receive the funding they need to 
pursue their development plans. The provision 
of such capital preserves and enhances the 
potential value of the Group’s investments, 
and those of our clients. 
Results
The loss from investment management 
operations before net movement on the 
revaluation of investments for the year 
ended 31 March 2009 was £977,000
(2008: £42,000).
The loss after tax for the year was  
£1.25m (2008: profit after tax £99,000),  
which equates to a loss per share of 9.22p  
(2008: earnings per share of 0.74p).
Total income before net movement on  
the revaluation of investments decreased  
to £565,000 (2008: £991,000). Investment 
management fee income fell to £350,000 
(2008: £660,000), and interest income fell to 
£215,000 (2008: £331,000). Inclusive of the 
net unrealised loss arising on the revaluation 
of portfolio investments of £278,000 (2008: 
gain of £148,000), total income decreased  
to £287,000 (2008: £1.14m).
Operating costs increased to £1.54m (2008: 
£1.03m) as a result of the implementation  
of our growth strategy and one-time costs  
of £257,000.
Cash utilisation fell marginally in the year 
to £1.59m (2008: £1.67m) and comprised 
£1.06m (2008: £1.17m) invested in portfolio 
companies and £523,000 (2008: £501,000) 
used in other activities.
The Group continues to have a strong 
balance sheet, with cash balances of £3.22m 
(2008: £4.81m) and net assets of £6.17m 
(2008: £7.35m) at the year end. 
Investing for the Longer Term
As I reported last year, the Board had 
adopted a growth strategy in order to 
achieve the Group’s potential. In the light  
of market conditions that strategy was  
tested throughout the second half of the 
year, with the Board concluding that it should 
press ahead with its plans. M&A transactions 
are one means of achieving this growth and 
at the present time values are attractive. I am 
therefore pleased that on 8 June 2009 we 
were able to report the acquisition of Inkopo 
Ltd, a highly regarded fund management and 
financial services business based in Yorkshire. 
Details of this acquisition are set out in the 
CEO and CFO reports and in Note 25 to the 
financial statements. I am personally 
delighted that Inkopo has joined our Group.  
I believe that this acquisition will give us a 
strong presence in Yorkshire and the North  
of England, further complementing our 
existing business and enhancing our fund 
management capacity.
 
Chairman’s Statement
Overview of our Business 2 BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009
The establishment of an office in London 
and the setting up of a dedicated marketing 
resource was the second part of our 
expansion plan. While the catalyst of an 
economic upturn is required to cement new 
relationships, we are well pleased with the 
progress that has been made to date.
Portfolio Investment
Notwithstanding short term fluctuations in 
valuations, our investment strategy is well 
proven, involving investment from our clients 
and our own balance sheet, leveraged by 
specialist public sector funds. With reduced 
levels of investment from our clients, and 
correspondingly lower public sector matched 
funding, greater proportionate responsibility 
has rested upon the Group’s own resources 
than has been necessary in the past. 
Our CIO will expand on our strategy  
for meeting that challenge but I would 
emphasise that our firepower has been 
focused on supporting our existing portfolio 
investments. More rounds of funding were 
concluded last year, albeit at lower average 
investment amounts, than in recent years 
and your Board is confident that no portfolio 
company deserving of additional capital  
has gone without. 
Board, Management and Staff
We appointed Colin Grant as Chief  
Financial Officer in October, and he 
immediately joined the Group’s Board.  
He has also taken over the role of Company 
Secretary from Carolyn Smith. Colin joined 
us from Digital Bridges Ltd where he held 
similar appointments. His experience and  
his knowledge of technology businesses 
makes him a valuable addition to the 
executive team.
With the appointment of its first CFO, 
Braveheart now has a well balanced Board 
of executive and non-executive talent which, 
in my view, gives the Group the best possible 
opportunity to deliver its growth plans. 
I am most encouraged by the cohesive and 
positive way in which the Board is tackling 
current issues.
In the financial services sector it is particularly 
true that companies are judged by the  
quality of their people. For our part we 
employ people of the highest calibre and  
it is their decisions and hard work that make 
Braveheart what it is. I should like to thank all 
of them for working so well together in what 
have been particularly challenging conditions. 
Prospects
We are pursuing our growth strategy because 
of our belief in the underlying strength of our 
investment business, and the confidence that 
we have in our executive team to nurture our 
investments and extract value when more 
benign economic conditions return and 
realisation opportunities emerge. 
Braveheart has strong liquid resources. With 
cash in excess of £3.2m at the year end, and 
an experienced management team, we can 
confidently look ahead in the knowledge  
that we have the ability to deliver our growth 
strategy and make things happen. I believe  
this will create shareholder value in what is 
likely to be a consolidating market.
“ ...we can confidently look 
ahead in the knowledge 
that we have the ability to 
deliver our growth strategy 
and make things happen. ”
Annual General Meeting
The notice regarding the business to be  
dealt with at the Company’s Annual General 
Meeting, to be held on 9 September 2009,  
is set out on pages 53 to 55.
In particular, I would like to draw your 
attention to Resolution 7 which authorises 
an increase in the Company’s share option 
pool. The directors believe that an increase  
in the option pool will enable it to utilise 
incentive based remuneration as a way of 
furthering the development of the Group, 
including attracting new employees, through 
acquisition or otherwise.
Your directors are unanimously in favour  
of resolutions nos. 1-7 (inclusive), which  
they consider to be in the best interests 
of shareholders as a whole.
Accordingly, your directors recommend 
shareholders to vote in favour of those 
resolutions, as they intend to do in respect  
of their own beneficial shareholdings.
I look forward to welcoming those 
shareholders who are able to attend.
Garry S Watson
Chairman
Growth
Providing equity capital  
to enable companies to 
achieve their ambitions. 
Overview of our Business 3  My last report to 
shareholders was drafted 
early in December 2008. 
Since that date the carnage 
in the financial markets has 
continued unabated and 
Churchill’s wish made in 
1925 about preferring to  
see ‘finance less proud’ has 
certainly come to pass.
In addition, other sectors such as retail and 
property have felt the pain that hitherto had 
principally been felt by the financial services 
sector, of which we are a part. The economic 
world of the last three decades has changed, 
probably forever.
While some commentators tell us that  
we are through the worst of the recession  
I believe prudent investors will be bearish  
for some time to come and I do not see 
confidence returning to the financial system 
in short course. It is therefore particularly 
important that we continue to take a 
conservative and prudent approach to 
running our business, that we plan for the 
long term and that we have contingency 
plans for ‘rainy days’. 
Our financial results as outlined in this report 
continue to reflect the state of the markets 
and we have posted a loss after tax for the 
year of £1.25m (2008: £99,000 profit after 
tax). This loss comes mainly as a result of 
reduced fee income from investment clients 
and from a reduction in the aggregate value 
of our investment portfolio. However, the 
portfolio remains fundamentally strong and 
includes some potentially very valuable 
companies. In addition, our cash balances of 
£3.22m put us in a strong position, and we 
believe we are well placed to grow our 
business once more stable market conditions 
prevail. Colin Grant, our recently appointed 
Chief Financial Officer, expands on these 
results in his report on pages 6 to 7.
Our new London office has been active and 
our associated marketing activities have been 
well received. In addition, I was very pleased 
to announce the recent acquisition of Inkopo 
Ltd which provides growth opportunities  
in a new geographical location and extends 
the services the overall Group can provide  
to both the private and public sectors.
In these difficult times our main focus has 
been on the following:
Managing our cash •	
Supporting our existing portfolio •	
companies
Utilising more flexible investment •	
instruments
Positioning ourselves for growth when •	
markets stabilise, and
Looking for M&A opportunities where •	
we can add value 
These priorities have not changed from 
when I last reported to you. I will deal with 
each of these matters in turn:
Managing our cash
Despite our losses this year, we managed  
our balance sheet well and cash utilisation 
remained in line with last year. We pared 
back investment in new opportunities and, 
while continuing to support an increased 
number of portfolio companies, we reduced 
the typical unit investment size from our  
own balance sheet. During the year we 
moved away from setting up new strategic 
partnerships that are cash hungry and 
increased our focus on medium term 
opportunities that are revenue and cash 
generative. Our operating costs for the year 
under review included a number of one-off 
costs and with continued sound financial 
management our cash balances are 
sufficient to see the business through the 
medium term.
Supporting our existing  
portfolio companies
Both institutional and private investors have 
shown a heavily reduced appetite for 
investment in the current market conditions. 
This impacted directly on our portfolio and 
placed an increased responsibility on us to 
support our companies both with cash and 
management assistance, particularly regarding 
Chief Executive Officer’s Report
Business Review 4
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009 business strategy and fund raising. In the year 
the Group invested an aggregate of £1.06m 
into 15 existing portfolio companies and one 
new business. The investment in the new 
business was made early in the year. Carolyn 
Smith, our Chief Investment Officer, provides 
additional detail on our portfolio companies  
in her report on pages 8 to 10.
Utilising more flexible investment 
instruments
We have invested £508,000 by way of 
convertible loan notes this year, compared  
to £183,000 in the previous year. These 
instruments have a number of advantages: 
firstly they are easier to tranche, secondly 
they are faster and less expensive to arrange, 
and thirdly we can take security over the 
assets of the business thereby reducing our 
risk. Typically the interest income is rolled up 
and will be converted to equity, at a discount, 
at some future date. The flipside is that these 
instruments are not as tax efficient for private 
investors and the balance sheets of the 
portfolio companies concerned appear  
highly geared which can be a disadvantage  
in commercial matters. 
Positioning ourselves for growth 
when markets stabilise
As noted in our December 2008 statement 
your Board believes that shareholder value 
can best be achieved by scaling up the 
Group’s business. To this end we opened  
a London office last November. In the 
intervening months our director of marketing 
and myself have been working hard building 
our presence and brand in London and the 
Home Counties. As a result we have ongoing 
dialogue with a number of intermediaries 
regarding potential strategic alliances and we 
expect these discussions to bear fruit in the 
fullness of time. Our London office has 
quickly become a valuable resource to the 
Group and is the first part of our plan to 
increase our geographical coverage. 
Looking for M&A opportunities 
where we can add value
Over the last few months we have looked  
at a number of M&A opportunities and  
we have recently announced the acquisition  
of Inkopo Ltd. This acquisition gives us an 
operating base in the North of England which 
fits well with our two existing offices in 
Scotland and London. As well as owning  
a small portfolio of investments, Inkopo 
generates income from fund management, 
private client/business angel network 
management and management services.  
By working closely with Inkopo’s incumbent 
management team, we believe we can 
successfully grow this business. This acquisition 
has been structured in such a way that 
Inkopo’s management will benefit from 
growth while being tied in to the Group  
as a whole. 
We continue to look for other M&A 
opportunities and see good value in the 
market given the cash constraints of a 
number of advisory type businesses. 
Forward Strategy
Given the current market conditions, your 
Board is particularly focused on reviewing 
strategic options on a regular basis. Our key 
goals over the short and medium term are:
Continue to provide strong support to •	
our highly ranked portfolio companies
Complete the integration of Inkopo into •	
the Group and provide resources to 
enable that entity to fulfil its potential
Build our core business lines of fund •	
management, private client investment 
management and management services
Continue to look for additional M&A •	
opportunities where we can add value, 
and
Use our cash wisely •	
Outlook
At the time of writing there are early signs 
that the worst of the turmoil in the financial 
markets may be over. In my view it would be 
premature to take such a view as read. 
We have utilised our resources to put us into 
the best possible position going forward. 
Our offering now emanates from three 
offices (one this time a year ago) and we 
have added the provision of management 
services to our existing core businesses of 
private client investment management and 
fund management. 
We have a number of new opportunities 
presenting themselves to us and we expect 
further M&A activity or new business 
creation within the next 12 months.
When the market returns to more stable 
levels we will be first in the queue for an 
uptick in business. 
Geoffrey C B Thomson
Chief Executive Officer
Business Review 5
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009
Support
Offering experienced 
business people to 
assist with corporate 
development. Chief Financial Officer’s Report
Overview 
The Group’s income 
comprises investment 
management revenue, 
valuation movements on  
its investment portfolio  
and finance income.
Investment management revenue, which is 
generated from portfolio companies, clients 
and other co-investors, is directly related to 
the number, value and equity-to-loan note 
funding mix of investments made in any 
given period.
Alongside its clients and co-investors,  
the Group also makes investments from its  
own balance sheet, and these investments 
are revalued at each reporting date.
Finance income is earned on the Group’s 
surplus cash balances.
As a result of the challenging financial 
environment in which the Group has 
operated in the last 12 months all 
components of income have suffered.
Nonetheless, as the Chairman and  
Chief Executive state in their reports,  
the Board continues to believe that growth 
opportunities exist within this environment 
and the Group has pursued its expansion 
strategy which it outlined last year, 
strengthening its senior management team 
and establishing a presence in London.
While the combination of reduced income 
and increased overhead has resulted in a 
substantial loss for the year, the Group has  
a strong balance sheet at the year end.
A summary analysis of the Group’s performance is:
  2009 2008 
  £’000 £’000
  
Investment management revenue 350 660
Finance income 215 331
Investment management income 565 991
Net movement arising on the revaluation of investments (278) 148
  
Total income 287 1,139
  
Employee benefits expense (including share-based compensation) (800) (559)
Other operating and finance costs (742) (474)
Total costs (1,542) (1,033)
  
(Loss)/profit before taxation (1,255) 106
  
Opening cash balance 4,809 6,482
Increase in investments (1,064) (1,172)
Utilised in other activities (523) (501)
Closing cash balance 3,222 4,809
  
Net assets 6,170 7,345
Income
Total income for the year ended 31 March 
2009 was £287,000, a decrease from 
£1.14m in 2008.
Investment management fee income was 
£350,000 (2008: £660,000). While the 
number of investments rose in the year,  
the average sum and the aggregate sum 
invested both fell. Furthermore, as the 
appetite for equity investment generally 
decreased, the proportion of the sums 
invested by way of lower fee-generating 
convertible loan notes increased.
At the start of the year, the Group’s own 
active investment portfolio of 32 companies 
was valued at £2.57m. During the year the 
Group made investments totalling £1.06m 
(2008: £1.22m) into one new and 15 existing 
portfolio companies. Of this total investment, 
£556,000 (2008: £1.04m) was made by way 
of equity and £508,000 (2008: £183,000)  
by way of convertible loan notes. 
 
Five companies instigated insolvency 
proceedings and/or ceased to trade and one 
company was acquired by way of a share-for-
share exchange. No other realisations were 
made during the year, and at 31 March 2009 
the fair value of the active investment 
portfolio of 28 companies was £3.26m, 
Business Review 6
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009 resulting in an aggregate unrealised 
revaluation loss of £378,000 (2008: 
unrealised revaluation gain of £458,000).  
This comprises an unrealised loss of £131,000 
(2008: £147 ,000) on listed equity investments 
(of which one company accounted for 83% 
of the loss), an unrealised loss of £22,000 
(2008: unrealised gain of £674,000)  
on unlisted equity investments and an 
impairment charge of £225,000 (2008: 
£69,000) on convertible loan notes.
The Group’s investments are held either  
by the Company or by Caledonia Portfolio 
Realisations Ltd (CPR), which it acquired in 
2007. Of the aggregate unrealised revaluation 
loss described above, £177 ,000 (2008: 
£161,000) was incurred on the Company’s 
portfolio and £201,000 (2008: unrealised  
gain of £619,000) on the CPR portfolio.
The unrealised revaluation loss on the CPR 
portfolio was offset in part by a reduction  
in contingent consideration of £100,000 
(2008: increase in contingent consideration 
of £310,000) payable on future exit values  
of its portfolio companies. In accordance 
with IFRS 3, the fair value of contingent 
consideration arising on future exit values of 
the CPR portfolio is recognised as goodwill. 
However, given that the underlying assets  
of CPR are held at fair value, any goodwill  
so recognised is immediately written off  
or written back to the income statement.
Interest income was £215,000 (2008: 
£331,000) reflecting decreasing cash 
balances throughout the year and, latterly, 
sharply lower interest rates.
Costs
Total costs were £1.54m, an increase from 
£1.03m in 2008.
Employee benefits expense (excluding 
share-based compensation) was £721,000 
(2008: £535,000) reflecting an increase in 
average headcount to 11 (2008: 9).
Share-based compensation was £79,000 
(2008: £24,000). In order to more accurately 
measure the cost of certain share options, 
during the year the Group changed from a 
Black-Scholes to a Trinomial pricing model for 
performance options with market conditions. 
As reported in our interim statement,  
a first close of the Strathclyde Innovation 
Fund (SIF) was achieved during the year.  
SIF is structured as a limited partnership  
(SIF LP). Group companies manage, and  
have an 89% equity interest in, SIF LP, and, 
accordingly, SIF LP is consolidated within  
the Group’s accounts. One-time costs of 
£111,000 (2008: £nil) incurred in establishing 
SIF are included in the Group Income 
Statement. An element of these costs  
may be recoverable should future closings 
involving new partners occur.
Also included in the Group Income Statement 
are recruitment and secondment costs of 
£1 18,000 (2008: £1 1,000) and fees of 
£28,000 (2008: £nil) in connection with the 
reduction of our share premium account  
(see below).
Other core operating expenses, including 
those incurred in establishing and running 
our London office, were £511,000 (2008: 
£463,000). 
The loss after a taxation credit of £2,000 
(2008: taxation charge of £7,000) was 
£1.25m (2008: profit of £99,000) of which 
£17,000 (2008: nil) was attributable to 
minority interests. This equates to a loss per 
share of 9.22p (2008: earnings per share  
of 0.74p).
Balance Sheet
The Group continues to have a strong 
balance sheet with net assets of £6.17m 
(2008: £7.35m) including cash balances of 
£3.22m (2008: £4.81m). 
Notwithstanding the strategic expansion of 
the Group, underlying cost control and cash 
management is of paramount importance. 
Cash utilisation fell marginally in the year to 
£1.59m (2008: £1.67m) and comprised 
£1.06m (2008: £1.17m) invested in portfolio 
companies and £523,000 (2008: £501,000) 
used in other activities. 
During the year, the petition filed by the 
Company under sections 135 to 138 of the 
Companies Act 1985 seeking confirmation 
of the reduction of its share premium 
account was approved by the Court of 
Session and the total balance of £7.01m  
was converted from share premium to 
retained earnings.
Post Balance Sheet Event
On 5 June 2009, the Company acquired  
the entire issued share capital of Inkopo Ltd, 
a specialist investment business based  
in Yorkshire. 
The initial consideration comprised a cash 
payment of £75,000 and 511,937 ordinary 
shares in Braveheart. In addition, at the date 
of acquisition Inkopo had approximately 
£52,000 of net debt. Two further tranches  
of consideration are payable on the first  
and second anniversary of completion 
(Contingent Consideration). The Contingent 
Consideration will be settled by the further 
issue of ordinary shares in Braveheart or,  
at Braveheart’s discretion, in cash or by the 
issue of unsecured loan notes. The Contingent 
Consideration will be based on (i) Inkopo’s 
turnover for the years ending 31 March 2010 
and 31 March 2011, and (ii) the attainment 
by Inkopo of certain other non-turnover 
based operating targets benefitting the 
Group. The total aggregate consideration  
is capped at £1.31m irrespective of any 
over-performance of Inkopo’s targets.  
All Braveheart ordinary shares issued as 
consideration will be valued at a price of 
39.2p, representing a one third premium  
to the average closing price of Braveheart 
shares on the five days prior to 15 May 2009, 
being the date on which heads of agreement 
were signed. 
Colin C Grant 
Chief Financial Officer
Business Review 7
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009
Service
Building diversified 
portfolios for investors 
and showing market 
leading returns. Chief Investment Officer’s Report
Last year I reported that 
given the prevailing 
economic climate we were 
going to need to support 
our existing portfolio 
companies with more 
capital than perhaps we 
might previously have 
expected and that we 
anticipated that it would be 
more challenging to raise 
new money for unquoted 
companies. This has indeed 
proven to be the case. 
 
During the year under review we have  
made further sums available to half of the 
companies in the portfolio. An update on 
the investment activity follows and we  
have featured four of our companies on 
pages 11 to 14.
Investment Activity
We added one new company to the Group’s 
portfolio, Im-Sense, and made follow-on 
equity investments into six companies: 
Cascade Technologies, Spiral Gateway, 
EctoPharma, Biopta, Pufferfish and Traak 
Systems. We also provided short term 
funding in the form of convertible loans, 
alongside other existing shareholders, to 
seven companies: Alivox, Tayside Flow 
Technologies (TFT) (subsequently converted 
to equity), NXVision, PSI Electronics, NiTech 
Solutions, Quantum Filament Technologies 
and Hydrosense. Finally, two other existing 
portfolio companies, Atlas Genetics and 
Conjunct, received second tranches of funds 
after meeting certain conditions throughout 
the year. 
The aggregate investment made into our 
portfolio companies during the year was 
£7.25m, being £2.77m from the Group  
and its clients leveraging £4.48m from  
other sources. 
Portfolio Divestments
I reported last year that Pentland Systems,  
a Caledonia Portfolio Realisations (CPR) 
portfolio company, was acquired on a 
deferred consideration basis; we still await  
the final determination and receipt of the 
proceeds of this sale, although we do not 
expect the proceeds to be material to the 
Group. Staying with the CPR portfolio, we 
have seen the loss of Orkell, and Intrallect was 
acquired by an IT services company, Leading 
Software, in a share-for-share exchange. 
On the remainder of the Group’s portfolio, 
Alivox has ceased to trade, and companies 
that instigated insolvency proceedings were 
Edinburgh Robotics, MicroEmissive Displays 
Group and Virtual Well Engineer.
Some of our companies have had tentative 
approaches by potential acquirers but 
current market conditions would suggest 
that more time is needed to maximise the 
potential outcome and any near-term exits 
will be opportunistic at best.
Business Review 8
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009 Progress in our Portfolio Companies
At the end of our financial year we had  
28 companies in the Group’s portfolio,  
as outlined in the table on page 10.  
Our portfolio is diversified both by sector  
and stage of company and our focus is on 
investing in companies where there is  
the potential for significant growth. 
A number of our early stage companies  
have been working towards the completion 
of various innovative products or services, 
with a number of market launches planned 
for the coming year. There have also been 
some notable achievements by some of our 
companies since the date of my last report: 
examples include TFT which achieved  
a CE mark and FDA 510k approval for its 
peripheral artery graft based on its 
proprietary Spiral Laminar Flow™ design –  
the TFT graft is now being distributed on  
a world-wide basis; Bloxx, with its web 
filtering software ‘Tru-View’, continues to 
demonstrate promising growth on a global 
scale, and in addition to other awards was 
included in the Deloitte Technology Fast 50 
(UK) and the Fast 500 (EMEA) indices of 
fastest growing technology companies, and 
secured a place in Red Herring’s ‘Global 200’ 
technology firms to watch; EctoPharma 
completed its phase 3 clinical trial into the 
use of its non-toxic headlice product, 
KindaPed, with compelling results; and in its 
best year yet, Pufferfish’s 360° spherical 
display systems captivated audiences at 
Coldplay’s Viva La Vida world tour. 
In the majority of our companies we 
maintain an active interest and provide 
management support where necessary 
through the various stages in the company 
lifecycle. We are encouraged by the calibre 
of the executive teams, in support of which 
we often introduce experienced individuals 
from our client base to chair the companies 
or to act in a non-executive capacity. Our 
client base is a valuable resource and we are 
immensely grateful for their contribution. 
Portfolio Returns
At the end of the year under review, our 
rebased client exit portfolio (being a portfolio 
where all exited investment returns are 
modelled since Braveheart’s inception in 1997) 
showed an internal rate of return of 33.40%. 
The overall client portfolio (modelling both 
exited and unexited investment returns) is 
showing a return of 24.48%. 
Forward Strategy
In summation, we continue to nurture our 
portfolio of companies by providing cash  
and management support where necessary. 
Investing in and managing our portfolio 
remains a key activity in building on the 
success of Braveheart and whilst a number  
of our companies will continue to need to 
show resilience under quite trying market 
circumstances we remain confident of the 
intrinsic value in the portfolio and will 
continue to drive these companies to achieve 
the goal of delivering a return for their 
respective shareholders.
Carolyn Smith
Chief Investment Officer
Business Review 9
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009
Partnership
Working with the 
academic and business 
communities to deliver 
economic benefit. Chief Investment Officer’s Report 
CONTINUEd
The Group’s portfolio 
(including the CPR portfolio) 
comprised 28 companies  
at the year end.  
Portfolio Company description of business
Company Portfolio 
AppShare Ltd Web collaboration software design
Atlas Genetics Ltd  Rapid ‘point-of-care’ molecular 
diagnostic equipment
Biopta Ltd  Contract research services for drug  
and tissue measurement
The Capital Pub Company plc Purchase and operation of pubs
Cascade Technologies Ltd  Laser-based equipment to detect 
presence of gases, explosives, etc
Conjunct Ltd Optical communications components
Convivial London Pubs plc¹ Purchase and operation of pubs
design LEd Products Ltd  Lighting display technology based  
on LEds
dimensional Imaging Ltd 3d and 4d image capture systems
EctoPharma Ltd
2
  Therapeutic healthcare pesticides 
Elonics Ltd  Multi-band radio frequency (RF)  
IC products
Im-Sense Ltd Image signal processing technology
MicroStencil Ltd  Manufacture of stencils for 
microelectronics sector
NiTech Solutions Ltd  design manufacturing solutions for 
chemical and process industries
NXVision Ltd ‘Place-shifting’ technology
PSI Electronics Ltd  Equipment to pinpoint faults  
in power cables
Pufferfish Ltd  360° display solutions principally for 
promotional activities
Pyreos Ltd  Infrared sensor arrays and components 
for commercial applications
Quantum Filament Technologies Ltd Flat screen display technology
Spiral Gateway Ltd  Low power solutions for integrated 
circuit design
Tayside Flow Technologies Ltd Cardiovascular medical devices
Traak Systems Ltd  Intelligent self-learning RFId identification 
and sensor network solutions
 
CPR Portfolio 
Adaptive Venture Managers Ltd Specialist private trading group 
Bloxx Ltd  Web filtering and internet filtering 
software 
Hydrosense Ltd  Identification of microbial contamination 
in industrial and environmental hygiene 
markets
Leading Software Ltd
3
 IT services 
Scalar Technologies Ltd Thin film measurement 
Verbalis Ltd Language translation software
¹ Previously The Capital Pub Company 2 plc
² Also a CPR portfolio company
3
 Acquired Intrallect Ltd in January 2009
Business Review 10
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009 Pyreos
Edinburgh-based Pyreos manufactures infrared component 
products aimed at mainly industrial applications such as 
spectroscopy, gas sensing, security and energy management.
In mid-2007, Pyreos acquired know-how and 
granted patents from Siemens AG relating  
to unique thin film pyroelectric ceramic 
infrared sensor technology developed over 
many years in the corporate research facilities 
in Munich. Pyreos has rapidly developed a 
range of infrared sensors for each of its target 
markets that offer compelling advantages 
over competitors’ products.
Pyreos is building an international customer 
base, including early adopter brand names  
in the field of infrared technology, and has 
recently signed two long term supply 
agreements with an export value of £8m 
over the next five years. 
Our Portfolio: Featured Investments 
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009
Business Review 11 Business Review 11 The PufferSphere is of lightweight design, 
has a stable image projection and a compact 
footprint making it easy for artistic creators 
to incorporate into their installations.  
Equally it offers the camera teams the ability 
to fly-by, zoom, pan and jib around displays 
creating a visually stunning effect for the 
audience. Pufferfish is also able to offer 
specialist content development and 
consultancy services.
Recent successes include six units used by 
Coldplay during their recent world concert 
tour, the PGA Tour opener in Scottsdale, 
Arizona and the Eurovision Song contest in 
Moscow where an estimated 100 million 
people witnessed the visual spectacle of  
six PufferSphere planets suspended above 
the crowd.
Our Portfolio: Featured Investments 
Pufferfish
Established in 2004, Pufferfish designs and develops 
inflatable spherical projection displays for use in the audio 
visual industry. Pufferfish was launched by Will Cavendish 
and Ollie Collier, graduates of the University of Edinburgh.
Business Review 12
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009 The technology restores the natural blood 
flow pattern. In initial clinical trials TFT’s first 
product, the peripheral vascular graft (PVG), 
has been implanted in patients with blocked 
or poorly functioning arteries, with 
compelling results. 
TFT received section 510k approval in April 
2009 from the US Food and Drug 
Administration (FDA) to market the PVG, 
incorporating its proprietary technology. 
Receiving FDA approval is a key milestone for 
TFT, opening up the large US market for the 
first time. Sales commenced in June 2009.
TFT already sells its product in Germany, 
Italy, Spain, UK, Greece, Belgium, Sweden, 
Netherlands, Switzerland, the Czech 
Republic, Austria and Ireland, and 
announced that it had recently signed 
distribution agreements in Turkey and 
Russia. Further distributor appointments are 
expected throughout the coming year.
TFT’s technology is now becoming 
recognised as an important new innovation 
in a growing and increasingly competitive 
medical device market.
Tayside Flow Technologies
Tayside Flow Technologies Ltd (TFT) was formed by  
three doctors in 2000 and is focused on the research, 
development and commercialisation of vascular devices 
based on a new understanding of blood flow dynamics 
called Spiral Laminar Flow
™
 (SLF) technology. 
Our Portfolio: Featured Investments 
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009
Business Review 13 Bloxx’s Tru-View technology uses patented 
technology to analyse and categorise web 
pages quicker and more accurately than 
other web filters. By using advanced 
intelligent identification and analysis 
techniques, Tru-View provides instant 
classification of web content as soon as 
it is accessed, which helps organisations 
proactively manage users’ access to web 
content which otherwise might lower 
productivity, expose the organisation  
to risk and liability or pose a network  
security threat. 
Over 1.5 million users from an impressive 
customer list already benefit from 
enhanced security and performance. 
Our Portfolio: Featured Investments 
Bloxx
Bloxx is an award-winning web filtering company which 
has developed novel approaches to prevent inappropriate 
use of the web by employees. Founded in 1999, Bloxx has 
expanded to a multimillion pound operation with products 
sold in Europe and North America.
Business Review 14
BRAVEHEART INVESTMENT GROUP  ANNUAL REPORT AND ACCOUNTS 2009 directors’ Report
The directors present their report together with the audited financial statements for the year ended 31 March 2009.
Principal Activities
The Group’s principal activities during the year continued to be the commercialisation of intellectual property through investments made from 
the Group’s own resources and on behalf of private clients and other co-investors, and the provision of investment management services. 
Results and Dividends
The financial statements of the Group and the Company for the year to 31 March 2009 are set out on pages 27 to 52.
The Group’s consolidated loss for the year after taxation was £1,253,229 (2008: profit £99,183), which has been transferred to reserves.
The directors do not recommend payment of a dividend for the year (2008: £nil).
Directors and their Interests
The names of the directors who held office during the financial year are listed on page 57. 
Biographical details of the directors who held office at the end of the financial year are shown on page 19. 
No director had a material interest in any contract, other than their contract for services, during or at the end of the financial year that was 
significant to the Group’s business.
Directors’ Interests in Shares
The directors at 31 March 2009 and their interests in the share capital in the Company (all of which are held beneficially, other than 39,062 
shares held by Garry Watson’s spouse, 13,750 shares held in trust for Garry Watson’s children, 10,000 shares held in trust for Garry Watson’s 
grandchildren and options to acquire ordinary shares which are detailed in the analysis of options included in the Directors’ Remuneration 
Report), are as follows:
 At 31 March 2009 At 31 March 2008
  (or date of appointment)
   Options over  Options over 
  Ordinary ordinary  Ordinary ordinary  
Directors  shares shares shares shares
    
G S Watson   328,177 66,907 328,177 100,361
G C B Thomson   2,750,890 294,207 2,750,890 277,958
C Smith   231,680 184,660 231,680 170,286
C C Grant (appointed 15 October 2008)   – 64,000 – –
E B Cunningham   493,275 26,719 493,275 40,079
J K Brown   – – – –
J H Delmar-Morgan (appointed 3 June 2008)   – – – –
No notification of any change in the above interests has been received in the period from 31 March 2009 to the date of this report.
Business Review and Future Developments
Accompanying this Directors’ Report are the Chairman’s Statement, Chief Executive Officer’s Report, Chief Financial Officer’s Report,  
Chief Investment Officer’s Report, Corporate Governance Statement and Directors’ Remuneration Report.
A review of the business and the future developments of the Group is presented in the Chairman’s Statement on pages 2 to 3, the Chief 
Executive Officer’s Report on pages 4 to 5, the Chief Financial Officer’s Report on pages 6 to 7 and the Chief Investment Officer’s Report  
on pages 8 to 10, all of which form part of this Directors’ Report by reference.
Key Performance Indicators (KPIs)
The KPIs we use to monitor business performance, which given the nature of our business are primarily financial measures, are:
    2009 2008
  
Net assets (£m)     6.17 7.35
Cash balance (£m)     3.22 4.81
(Loss)/profit after tax attributable to equity holders (£m)     (1.24) 0.10
Investments made by Group (£m)     1.06 1.22
Investments made by Group (number)     16 12
Returns achieved on client exit portfolio (% to date)     33.40 33.40
Governance 15
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009 directors’ Report
CONTINUEd
Principal Risks and Uncertainties, and Financial Instruments
Through its operations the Group is exposed to a number of risks. The Group’s risk management objectives and policies are described in the 
Corporate Governance Statement on pages 20 to 22.
The Group’s financial instruments comprise investments designated at fair value through profit or loss, cash and various items such as trade 
and other receivables, and trade payables, all of which arise directly from its normal operations. The main purposes of these financial 
instruments are to provide returns from investment and finance for the Group’s operations.
Further information regarding the Group’s financial risk management objectives and policies, including those in relation to credit risk, liquidity 
risk and market risk, is provided in Note 23 to the financial statements.
Share Capital
Details of the structure of the Company’s share capital and the rights attaching to the shares are set out in Note 18 to the financial statements. 
At 31 March 2009, the Company had 13,403,895 allotted, called up and fully paid ordinary shares of 2p each.
The Company has one class of ordinary shares. All shares carry equal voting rights, equal rights to income and distribution of assets on 
liquidation or otherwise, and no right to fixed income.
There are no specific restrictions on the size of a holding or on the transfer of shares, which are both governed by the general provisions of  
the Company’s Articles of Association (the Articles) and prevailing legislation.
Power to purchase the Company’s own shares is provided in the Company’s Articles subject to statutory provisions. The directors have no 
existing authority to purchase the Company’s own shares.
Articles of Association
The Company’s Articles may be amended by a special resolution of the shareholders.
Appointment and Replacement of Directors
The Company may by ordinary resolution appoint a person who is willing to act to be a director, either to fill a vacancy or as an addition to the 
existing directors and may also determine the rotation in which any additional directors are to retire. Any person so appointed by the directors 
shall hold office only until the conclusion of business at the next Annual General Meeting and shall be eligible for reappointment by ordinary 
resolution at that meeting. The Company may also by ordinary resolution remove a director from office.
At each Annual General Meeting of the Company, directors eligible to retire shall retire from office by rotation. No director shall continue  
to hold office as a director after the third Annual General Meeting following his/her election or re-election, without submitting themselves  
for re-election at the said third Annual General Meeting.
Significant Shareholdings
As at 31 March 2009, the following beneficial owners each held 3% or more of the Company’s issued share capital:
Name    Number Percentage
G C B Thomson     2,750,890  20.52
Kenmore Private Equity Ltd     2,500,000  18.65
Uberior Investments plc
1
     1,338,410 9.99
Securities Services Nominees Ltd
2
      523,411 3.90
E B Cunningham     493,275 3.68
K J Campbell     454,500 3.39
Schweco Nominees Ltd
3
     406,250 3.03
1
 A subsidiary of Lloyds Banking Group plc
2
 Beneficial owner being A M Threipland
3
 Beneficial owner being Sir J Mactaggart
Events after the Balance Sheet Date
Events since the balance sheet date are described within the Chairman’s Statement on pages 2 to 3, the Chief Executive Officer’s Report on 
pages 4 to 5, the Chief Financial Officer’s Report on pages 6 to 7 and Note 25 to the financial statements.
Governance 16
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009 Directors’ Responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable United Kingdom  
law and those International Financial Reporting Standards (IFRS) as adopted by the European Union.  
The directors are required to prepare financial statements for each financial year which give a true and fair view of the financial position of  
the Company and of the Group, and the financial performance and cash flows of the Company and of the Group for that period. In preparing 
those financial statements, the directors are required to: 
1 select suitable accounting policies and then apply them consistently;
2  present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable 
information; 
3  provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the 
impact of particular transactions, other events and conditions on the Company and Group’s financial position and financial performance; 
4  state that the Company and Group have complied with IFRS, subject to any material departures disclosed and explained in the financial 
statements;
5  prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business; and
6 make judgements and estimates that are reasonable and prudent.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position 
of the Company and of the Group 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 the Group and hence for taking reasonable steps for the prevention and 
detection of fraud and other irregularities.
Creditor Payment Policy
The Group’s policy is to:
a) agree payment terms with each supplier when placing orders and 
b) adhere to the agreed terms.
The Group’s average creditor payment period at 31 March 2009 was 22 days (2008: 25 days). 
Political and Charitable Donations
It is the Board’s policy not to make charitable and political donations which exceed £200. The Group did not make any such donations in  
the year.
Annual General Meeting
Notice of the Annual General Meeting is set out on pages 53 to 55. Information relating to certain of the resolutions is given or referred to  
in the notes forming part of the notice.
Disclosure of Information to Auditors
All of the current directors have taken all the steps that they ought to have taken to make themselves aware of any information needed by the 
Group’s auditors for the purposes of their audit and to establish that the auditors are aware of that information. The directors are not aware  
of any relevant audit information of which the auditors are unaware.
Auditors
During the year Ernst & Young LLP resigned as auditor and Grant Thornton UK LLP were appointed to fill the casual vacancy. A resolution 
proposing the reappointment of Grant Thornton UK LLP will be put to the shareholders at the forthcoming Annual General Meeting.
On behalf of the Board
Colin C Grant
Company Secretary
17 June 2009
Governance 17
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009 4
2
7
3
6
Board of directors
1
5
Governance 18
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009 1 Garry S Watson obe c a Chairman
Garry is a former managing director of Hill 
Samuel Bank (Head of Investment Finance), 
Legal Services Ombudsman for Scotland and  
a Governor and Deputy Chairman of the 
Macaulay Land Use Research Institute in 
Aberdeen. He is currently a Director and 
Chairman of the Audit Committee of Places 
for People Group, one of the largest UK 
providers of mixed tenure housing.
2 Geoffrey C B Thomson
Chief Executive Officer
One of the founders of Braveheart, Geoffrey is 
a well known business angel and deal maker. 
Geoffrey has written columns on investment 
for various national broadsheets and regularly 
speaks at business events in Scotland. Other 
than Braveheart, he is a director of NESTech 
(the challenge fund of the universities of St 
Andrews, Dundee and Aberdeen), and sits  
on the advisory board of EPSRC (a steering 
body for innovation in UK biotechnology). 
Geoffrey’s contribution to Scottish businesses 
was recognised by the receipt of a special  
Ernst & Young Entrepreneur of the Year 
(Scotland) award in 2008.
3 Carolyn Smith b a Hons a cis Chief Investment Officer
Carolyn has an honours degree in 
accountancy from the University of Stirling 
and is a Chartered Secretary. She spent five 
years working in insolvency before moving  
to business development and investment. 
After five years working in private equity  
with LINC Scotland, the national association 
for business angels in Scotland, she joined 
Braveheart in 2000.
4 Colin C Grant BCom c a Chief Financial Officer  
and Company Secretary
Colin joined the Board in October 2008, 
bringing with him experience of public 
markets and venture-backed technology 
companies. Prior to joining Braveheart he 
was Chief Financial Officer and Company 
Secretary and before that Chief Operating 
Officer for Digital Bridges Ltd, a leading 
global provider of mobile entertainment 
software applications. Previous to that he 
worked as Finance Director and Company 
Secretary at VISION Group plc, an LSE-listed 
university spin-out company which 
pioneered CMOS imaging.
5 Edward B Cunningham c b e Senior non-executive director
Edward has UK and international industry 
experience. Latterly he was Director, Industry 
and Enterprise Development with the Scottish 
Development Agency. He has been Chairman 
of a number of 3i-invested companies as well 
as other companies including the Scottish 
Exhibition and Conference Centre. He has  
also been a Director of TSB Bank Scotland  
and Watson & Philip. He is currently Chairman 
of two companies, and on the board of two 
other companies and one charitable trust.
6 J Ken Brown b a c a Non-executive director
Ken was previously Finance Director at a 
major international real estate group, where 
gross assets grew from £40m to £1.7bn 
during his time there. He has extensive 
experience of negotiating corporate 
acquisitions and disposals, of structuring 
joint venture arrangements and of arranging 
both equity and debt finance. Prior to this he 
spent 12 years as Group Finance Director of 
two quoted companies. He is currently an 
executive director of one company and a 
non-executive director of three others.
7 Jeremy H Delmar-Morgan
Non-executive director
Jeremy was a partner in Hoblyn, Dix & 
Maurice and a Director of Vickers Da Costa 
before joining Teather & Greenwood in 1979, 
where he went on to become Chairman.  
He subsequently joined Hichens, Harrison  
& Co as Chairman in 2004. He is a Director  
of London Symphony Orchestra and  
Sefton Resources Inc and Chairman of  
The Brendoncare Foundation and of Eagle 
Crown Productions Ltd. Jeremy joined the 
Board in June 2008.
Governance 19
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009 Corporate Governance Statement
The directors recognise the importance of sound corporate governance. As a company whose shares are traded on the London Stock 
Exchange (Alternative Investment Market) (AIM), the Company is not obliged to comply with the corporate governance regime as set out  
in the Combined Code on Corporate Governance, but it does support the principles of the Code. It intends to comply with the Quoted 
Companies Alliance’s Corporate Governance Guidelines for AIM Companies insofar as it is reasonably practicable for a public company of its 
size and nature. The directors have adopted a code of conduct for dealings by directors and employees which complies with the AIM Rules 
and are committed to maintaining the highest standards of corporate governance.
The Board of Directors 
The Board currently comprises the Chairman, Garry Watson; three other non-executive directors, Edward Cunningham, Ken Brown  
and Jeremy Delmar-Morgan; and three executive directors, the Chief Executive Officer, Geoffrey Thomson, the Chief Investment Officer, 
Carolyn Smith and the Chief Financial Officer, Colin Grant.
Biographical details of the current directors are set out on page 19. Executive and non-executive directors are subject to re-election at intervals 
of no more than three years. The letters of appointment of all directors are available for inspection at the Company’s registered office during 
normal business hours. 
The Board meets at least eight times per annum. It has established an Audit and Risk Management Committee, a Remuneration Committee 
and a Nominations Committee, particulars of which appear hereafter.
All members of the Board and its committees served throughout the year with the exception of Jeremy Delmar-Morgan who was appointed  
on 3 June 2008, and Colin Grant who was appointed on 15 October 2008. Shonaig Macpherson and Donald Turner resigned as non-executive 
directors on 10 September 2008. 
Certain executive and non-executive directors are clients of Braveheart Ventures Ltd, the Company’s principal investment management 
subsidiary. Further information regarding related party transactions during the year is detailed in Note 22 to the financial statements. 
Non-executive Directors
The non-executive directors have a broad range of experience, as evidenced by their biographical details, and are well equipped to bring 
independent judgement to bear on issues of strategy, performance, resources and standards of conduct that are vital to the success of  
the Company.
The Board has adopted guidelines for the appointment of non-executive directors which have been in place and which have been observed 
throughout the year. These provide for the orderly and constructive succession and rotation of the chairman and non-executive directors 
insofar as both chairman and non-executive directors will be appointed for an initial term of three years and may, at the Board’s discretion, 
believing it to be in the best interests of the Company, be appointed for subsequent terms. The chairman may serve as a non-executive 
director before commencing a first term as chairman.
In accordance with the Companies Act 2006, the directors comply with: a duty to act within their powers; a duty to promote the success  
of the Company; a duty to exercise independent judgement; a duty to exercise reasonable care, skill and diligence; a duty to avoid conflicts  
of interest; a duty not to accept benefits from third parties and a duty to declare any interest in a proposed transaction or arrangement.
Delegation of Responsibilities by the Board of Directors
Ultimate authority for all aspects of the Group’s activities rests with the Board, the respective responsibilities of the Chairman and Chief 
Executive Officer arising as a consequence of delegation by the Board. The Board has adopted two statements; the first sets out matters 
which are reserved to the Board and the second establishes the division of responsibilities between the Chairman and the Chief Executive 
Officer. The Chairman is responsible for the effectiveness of the Board and for ensuring communication with shareholders, while management 
of the Group’s business has been delegated by the Board to the Chief Executive Officer.
Audit and Risk Management Committee
The Audit and Risk Management Committee comprises Ken Brown (its Chairman), Edward Cunningham and Jeremy Delmar-Morgan and  
has primary responsibility for monitoring the quality of internal controls and ensuring that the financial performance of the Group is properly 
measured and reported. It receives reports from the executive management and auditors relating to the interim and annual accounts and the 
accounting and internal control systems in use throughout the Group. The Audit and Risk Management Committee meets not less than three 
times in each financial year and has unrestricted access to the Group’s auditors.
Remuneration Committee
The Remuneration Committee comprises Edward Cunningham (its Chairman), Ken Brown and Garry Watson. The Remuneration Committee 
reviews the performance of the executive directors and employees and makes recommendations to the Board on matters relating to their 
remuneration and terms of employment. The Remuneration Committee also considers and approves the granting of share options pursuant  
to the share option plan.
Governance 20
BRAVEHEART INVESTMENT GROUP   ANNUAL REPORT AND ACCOUNTS 2009 Nominations Committee
The Nominations Committee was established in April 2008 and meets as and when required. The Nominations Committee comprises Edward 
Cunningham (its Chairman) and Garry Watson and is responsible for the identification and nomination of candidates for the roles of Chairman, 
Chief Executive Officer, other executive directors and non-executive directors. Members of the Nominations Committee met twice during the 
year, such meetings being subsumed within Board meetings, to consider the appointment to the Board of Directors of Jeremy Delmar-Morgan 
and Colin Grant. The Committee’s remit extends to the nomination of all directors of subsidiary companies and with succession planning in 
relation to the above aforementioned posts. It is also concerned with matters relating to corporate governance, insofar as they may relate to 
concerns or complaints from shareholders concerning the conduct of Board directors, and bringing any such issue to the attention of the Board.
Attendance at Board and Committee Meetings 
The following table summarises the number of board and committee meetings held during the year and the attendance record of  
individual directors:
  Audit and Risk
 Board Management Remuneration Nominations
  Eligible  Eligible  Eligible  Eligible
 Attended to attend Attended to attend Attended to attend Attended to attend
G S Watson 11 11 – – 2 2 – –
G C B Thomson 11 11 – – – – – –
C Smith 11 11 – – – – – –
C C Grant  6 6 – – – – – –
(appointed 15 October 2008) 
E B Cunningham 9 11 3 4 2 2 – –
J K Brown  11 11 4 4 2 2 – –
J H Delmar-Morgan  10 10 2 2 – – – – 
(appointed 3 June 2008) 
A L A S Macpherson  3 4 – – – – – – 
(resigned 10 September 2008) 
D I Turner  2 4 – 2 – – – –
(resigned 10 September 2008) 
Share Dealings
The Company has adopted, with effect from the date on which its shares were admitted to AIM, a code for directors and employees’ dealings 
in securities which is appropriate for a company whose securities are traded on AIM, and is in accordance with rule 21 of the AIM rules.
Investment Authorities
Investment authorities are reviewed in March of each year and more frequently as determined by the Board. These authorities relate to the 
maximum amount that the executive directors may invest from the Group’s balance sheet in any one portfolio investment. Investments 
outwith the agreed parameters may be made with the agreement of a non-executive director or by the Board.
Risk Management and Internal Control
Risk management is the responsibility of the Risk Management Group, which comprises the three executive directors. The Risk Management 
Group reports to the Audit and Risk Management Committee, which is responsible to the Board for ensuring that procedures are in place, and 
are being effectively implemented to identify, evaluate and manage the significant risks faced by the Company. A risk assessment matrix sets 
out those risks, and identifies their ownership and the controls that are in place. The Risk Management Group updates this matrix as changes 
arise in the nature of risks or the controls that are implemented to mitigate them. The Audit and Risk Management Committee reviews the risk 
matrix and the effectiveness of scenario testing by the Risk Management Group on a regular basis.
Governance 21
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 The following key risks, and controls to mitigate them, have been identified:
Activity Risk Control
Management Recruitment and retention of staff Stimulating and safe working environment. 
  Balancing salary with longer term incentive plans.
 
Regulatory adherence  Breach of rules  Strong compliance regime.
 
Strategic Reputation Effective communications with shareholders  
  and roadshows. 
  Robust compliance. 
  
 Disaster recovery Secure off-site storage of data. 
  Two networks.
 
Financial Liquidity, market and credit risk Appropriate authority and investment levels as set  
  by Treasury and Investment Policies. 
 
 Inappropriate controls and accounting policies Audit and Risk Management Committee.
Further details of the financial risks, including quantitative considerations of their potential impacts, are set out in Note 23 to the financial 
statements.
The directors have established procedures, as represented by this statement, for the purpose of providing a system of internal control.  
An internal audit function is not considered necessary or practical due to the size of the Company and the close day-to-day control exercised  
by the executive directors. However, the Board will continue to monitor the need for an internal audit function.
Going Concern
The directors have reviewed the Group and the Company’s budgets and plans and are satisfied that the Group and the Company have 
adequate resources to continue in operational existence for the foreseeable future and that it is therefore appropriate to continue to adopt  
the going concern basis in preparing the financial statements.
Communication with Shareholders
The Board is committed to maintaining good communication and having constructive dialogue with its shareholders. The Company has 
particularly close ongoing relationships with its investment clients, many of whom are also private shareholders. Institutional shareholders, 
private client brokers and analysts have the opportunity to discuss issues and provide feedback in the course of roadshow presentations 
following the announcement of preliminary and interim results. In addition, all shareholders are encouraged to attend the Company’s  
Annual General Meeting.
Investors have access to current information on the Company though its website, www.braveheartinvestmentgroup.co.uk, and via  
Andrew McInroy, its Investor Relations Officer, who is available to answer investor relations enquiries.
Corporate Governance Statement
CONTINUEd
Governance 22
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 directors’ Remuneration Report
Remuneration Committee
The Remuneration Committee is comprised entirely of non-executive directors. It is chaired by Edward Cunningham and its other members are 
Garry Watson and Ken Brown. The Chief Executive Officer, Geoffrey Thomson, attends by invitation and assists the Committee. The Committee 
met twice during the year.
Remuneration Policy
The Remuneration Committee reviews the remuneration of executive directors towards the end of each financial year. The overall policy of the 
Committee is to enable the Company to secure and retain the skills and experience required to ensure that its corporate objectives are achieved, 
including an increase in shareholder value.
Determination of Directors and Senior Management’s Salaries
The Remuneration Committee determines directors and senior management’s salaries in relation to the tasks and responsibilities involved and 
the level of comparable salaries in the market place. In particular, the Committee seeks to ensure that salaries are competitive. The Committee 
takes performance into account through the Company’s appraisal process. In its final determination of salaries, the Committee’s conclusions 
are set within what is affordable. The Company did not contribute to any pension schemes nor pay any bonuses during the year, although it 
did establish a private medical insurance scheme for executive directors and employees.
Executive Director Service Agreements
Each of the executive directors has a service agreement with the Company. These agreements can be terminated by either party giving the 
other written notice at any time, not less than six months in the case of Geoffrey Thomson and not less than three months in the cases of 
Carolyn Smith and Colin Grant. Payments on termination are restricted to the value of the salary for the notice period.
Non-executive Directors
The fees payable to the Chairman and the non-executive directors are first reviewed by the Committee, taking into account market rates, 
following which it submits recommendations to the Board for approval.
The Chairman and each non-executive director have agreed a letter of appointment which sets out their duties, responsibilities and fees.
Directors’ Remuneration 
The total amount of directors’ remuneration is set out below:
   Current basic   
   salary and/ Total Total 
   or fees p.a. 2009 2008
   £ £ £
Executive directors     
G C B Thomson   141,750 141,750 135,000
C Smith   105,000 105,000 100,000
C C Grant (appointed 15 October 2008)   100,000 47,436 – 
     
Non-executive directors     
G S Watson    15,750 15,750 25,000
E B Cunningham    10,500 10,500 10,000
J K Brown    10,500 10,500 5,385
J H Delmar-Morgan (appointed 3 June 2008)   10,500 8,683 –
D I Turner (resigned 10 September 2008)   – 4,500 10,000
A L A S Macpherson (resigned 10 September 2008)   – 4,500 10,000
    348,619 295,385
     
The Company did not contribute to any pension schemes nor pay any bonuses during the year (2008: £nil). During the year the Company 
established a private medical insurance scheme for executive directors and employees and paid premiums of £899, £316 and £222 in respect 
of Geoffrey Thomson, Carolyn Smith and Colin Grant.
Share Option Scheme
The Company operates the Braveheart Investment Group plc Executive Share Option Scheme 2006 (the Scheme), which comprises Part A, a 
share option scheme approved by HMRC (the Approved Scheme) and Part B, an unapproved share option scheme (the Unapproved Scheme). 
Historically, the Scheme was open to all directors and employees of the Group, although non-executive directors could only participate in Part B. 
The Scheme is now open only to executive directors and employees.
Governance 23
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 directors’ Remuneration Report
CONTINUEd
Options are granted by the Board taking into account the need to motivate, retain and recruit high calibre employees and with regard  
to the contribution that such employees are expected to make in achieving the Company’s objectives.
Options granted under the Scheme are categorised as either Employment Options or Performance Options. Employment Options may be 
granted under either Part A or Part B. All Performance Options are granted under Part B.
Employment Options vest and become exercisable on the third anniversary of date of grant, and generally lapse on the earlier of cessation  
of employment (or six months thereafter if options have vested at cessation date) or the 10th anniversary of date of grant.
Performance Options have vesting conditions linked to the growth in the Company’s market capitalisation from the date of grant 
(Performance Conditions). If a Performance Condition is not met, the related Performance Option lapses at the end of the relevant 
measurement period.
Otherwise Performance Options vest on attainment of the Performance Condition and become exercisable on the 1st anniversary  
of the date of the Performance Condition being met, and lapse on the 10th anniversary of date of grant.
Share Options 
The interests of the directors in share options were as follows:
    No. of No. of No. of 
   At options options options At    
  Date 1 April granted in exercised in lapsed in 31 March Exercise Date first Expiry 
  of grant 2008 year year year 2009 price exercisable date
         
Employment Options 
granted under Part A      
G C B Thomson 25 June         25 June 24 June 
  2008  – 26,086 – – 26,086 £1.15 2011  2018
C Smith 18 June         18 June 17 June 
  2007  18,237 – – – 18,237 £1.645 2010  2017
C C Grant 8 December         8 December 7 December  
  2008  – 28,902 – – 28,902 £0.35 2011  2018
Employment Options  
granted under Part B       
G C B Thomson 18 June          18 June  17 June  
  2007  24,948 – – – 24,948 £1.645  2010  2017
  25 June        25 June 24 June 
  2008  – 14,377 – – 14,377 £1.15 2011  2018
    24,948 14,377 – – 39,325   
C Smith 18 June         18 June  17 June 
  2007  243 – – – 243 £1.645 2010  2017
  25 June        25 June 24 June  
  2008  – 28,902 – – 28,902 £1.15 2011  2018
    243 28,902   29,145   
Governance 24
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009     No. of No. of No. of 
   At options options options At    
  Date 1 April granted in exercised in lapsed in 31 March Exercise Date first Expiry 
  of grant 2008 year year year 2009 price exercisable date
Performance Options  
granted under Part B
G S Watson 18 June        18 June 17 June 
  2007  100,361 – – (33,454) 66,907 £1.645 2008 2017
G C B Thomson 18 June        18 June 17 June 
  2007  253,010 – – (84,337) 168,673 £1.645 2008 2017
  25 June        25 June 24 June 
  2008  – 60,123 –  – 60,123 £1.15 2009 2018
    253,010 60,123 – (84,337) 228,796   
C Smith 18 June        18 June 17 June 
  2007  151,806 – – (50,602) 101,204 £1.645 2008 2017
  25 June        25 June 24 June 
  2008  – 36,074 –  – 36,074 £1.15 2009 2018
    151,806 36,074 – (50,602) 137,278   
C C Grant 8 December        8 December 7 December 
  2008  – 35,098 – – 35,098 £0.35 2009 2018
 
E B Cunningham 18 June        18 June 17 June 
  2007  40,079 – – (13,360) 26,719 £1.645 2008 2017
The Performance Conditions attached to the Performance Options are as follows:
  Percentage of the grant to which the  
Date of grant Performance condition performance condition applies to
  
18 June 2007 The Company’s market capitalisation exceeds the benchmark price  33.33% 
 by 50% for 5 consecutive business days at any time before the 1st 
 anniversary of date of grant.
  The Company’s market capitalisation exceeds the benchmark price 33.33% 
by 100% for 5 consecutive business days at any time before the 2nd  
anniversary of date of grant.
  The Company’s market capitalisation exceeds the benchmark price  33.33% 
by 150% for 5 consecutive business days at any time before the 3rd  
anniversary of date of grant.
 
25 June 2008  The Company’s market capitalisation exceeds the benchmark price  100% 
by 25% for 5 consecutive business days at any time before the 1st  
anniversary of date of grant.  
8 December 2008  The Company’s market capitalisation exceeds the benchmark price  100% 
by 25% for 5 consecutive business days at any time before the 1st  
anniversary of date of grant.  
The benchmark price is the option exercise price multiplied by the number of ordinary shares of 2p each in the issued share capital of 
the Company on the date of grant of the related option.
The charge made in respect of the fair value of options granted to directors was:
    2009 2008
    £ £
Expense arising from equity-settled share-based payment transactions    54,415 21,481
Additional information on share options is provided at Note 19.
Governance 25
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Independent Auditors’ Report  
to the Members of Braveheart Investment Group plc
We have audited the Group and Parent Company financial statements (the Financial Statements) of Braveheart Investment Group plc for  
the year ended 31 March 2009, which comprise the Group Income Statement, the Group and Parent Company Balance Sheets, the Group 
and Parent Company Cash Flow Statements, the Group and Parent Company Statement of Changes in Equity and the related Notes 1 to 25. 
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 auditors’ report 
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company 
and the Company’s members as a body, for our audit work for this report or for the opinions we have formed.
Respective Responsibilities of Directors and Auditors
The directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with applicable United Kingdom law and 
International Financial Reporting Standards (IFRS) 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 that specific information 
presented in the Chairman’s Statement, the Chief Executive Officer’s Report, the Chief Financial Officer’s Report and the Chief Investment 
Officer’s Report that is cross referred 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.  
This other information comprises only Highlights, the Chairman’s Statement, the Chief Executive Officer’s Report, the Chief Financial Officer’s 
Report, the Chief Investment Officer’s Report, the Directors’ Report, the Corporate Governance Statement, the Directors’ Remuneration 
Report and Company Information. We consider the implications for our report if we become aware of any apparent misstatement 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 judgements made by the directors in the preparation of the financial statements, and of 
whether the accounting policies are appropriate to the Group and Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide 
us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused  
by fraud or other irregularity or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in  
the financial statements. 
Opinion
In our opinion: 
• 	 	 t h e 	 G r o u p 	 f i n a n c i a l 	 s t a t e m e n t s 	 g i v e 	 a 	 t r u e 	 a n d 	 f a i r 	 v i e w , 	 i n 	 a c c o r d a n c e 	 w i t h 	 I F R S 	 a s 	 a d o p t e d 	 b y 	 t h e 	 E u r o p e a n 	 U n i o n , 	 o f 	 t h e 	 s t a t e 	 o f 	 t h e	
Group’s affairs as at 31 March 2009 and of its loss for the year then ended; 
•	 	 t h e 	 P a re n t 	 C o m p a n y 	 f in a n c ia l 	 sta t e me n t s 	 g iv e 	 a 	 t r ue 	 a n d 	 f a ir 	 vie w , 	 in 	 ac c o r d a n c e 	 wi t h 	 I F R S 	 a s 	 a dopt ed 	 b y 	 t h e 	 E u r ope a n 	 Unio n 	 a s 	 a pp l ied	
in accordance with provisions of the Companies Act 1985, of the state of the Parent Company’s affairs as at 31 March 2009;
•	 t h e 	 f in a n c ia l 	 sta t e me n t s 	 h a v e 	 bee n 	 p r ope r ly 	 p rep a red 	 in 	 ac c o r d a n c e 	 wi t h 	 t h e 	 C o m p a nies 	 A c t 	 1 985 ; 	 a n d	
•	 t h e 	 in f o rm a t io n 	 g iv e n 	 in 	 t h e 	 Direc t o rs ’ 	 R epo r t 	 i s 	 c o n s i st e n t 	 wi t h 	 t h e 	 f in a n c ia l 	 sta t e me n t s.
Grant Thornton UK LLP
Registered Auditor
Chartered Accountants
Edinburgh
17 June 2009
Governance 26
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Group Income Statement 
f OR THE y EAR ENdEd 31 M ARCH 2009
    2009 2008
  Notes  £ £
    
Revenue  3  350,335 659,449
Unrealised (loss)/profit on the revaluation of investments  12  (377,815) 458,142
Movement on contingent consideration  13, 14  100,206 (309,717)
Finance revenue   5  214,675 330,856
Total income    287,401 1,138,730
    
Employee benefits expense  4  (800,341) (558,532)
Other operating costs    (741,070) (474,187)
Finance costs  6  (991) –
Total costs    (1,542,402) (1,032,719)
    
(Loss)/profit before taxation    (1,255,001) 106,011
    
Taxation  8  1,772 (6,828)
    
(Loss)/profit for the period    (1,253,229) 99,183
    
(Loss)/profit attributable to:    
Equity holders of the parent    (1,235,902) 99,183
Minority interest    (17,327) –
    (1,253,229) 99,183
    
    Pence Pence
(Loss)/earnings per share 
– basic and diluted  10  (9.22) 0.74
    
All revenues and (losses)/profits arise from continuing operations.
Accounts and Notes 27
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Group Balance Sheet 
AS AT 31 MARCH 2009
    2009 2008
  Notes  £ £
ASSETS    
Non-current assets    
Property, plant and equipment  11  44,034 26,734
Investments at fair value through profit or loss  12  3,260,512 2,574,595
    3,304,546 2,601,329
    
Current assets    
Trade and other receivables  15  99,804 442,879
Current tax asset    – 24,577
Cash and cash equivalents  16  3,221,844 4,808,870
    3,321,648 5,276,326
    
Total assets    6,626,194 7,877,655
    
LIABILITIES    
Current liabilities    
Trade and other payables  17  (172,693) (198,712)
Contingent consideration  13  (209,511) (309,717)
Deferred income    (22,585) (22,442)
Borrowings  21  (9,875) –
    (414,664) (530,871)
Non-current liabilities    
Deferred tax liability   8  – (1,772)
Borrowings  21  (41,078) –
    (41,078) (1,772)
    
Total liabilities    (455,742) (532,643)
    
Net assets    6,170,452 7,345,012
    
EQUITY    
Called up share capital  18  268,078 268,078
Share premium account    – 7,008,838
Retained earnings    5,919,701 68,096
Total shareholders’ equity    6,187,779 7,345,012
Minority interest in equity    (17,327) –
Total equity    6,170,452 7,345,012
    
Approved for issue by the Board of Directors on 17 June 2009 and signed on its behalf by:
Garry S Watson
Chairman
Accounts and Notes 28
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Company Balance Sheet
AS AT 31 MARCH 2009
    2009 2008
    £ £
  Notes   (as restated)
ASSETS    
Non-current assets     
Investments at fair value through profit or loss  12  2,735,489 1,855,160
Investment in subsidiaries  13  1,233,705 583,911
    3,969,194 2,439,071
    
Current assets    
Trade and other receivables  15  292,015 605,522
Cash and cash equivalents  16  2,769,303 4,616,263
    3,061,318 5,221,785
    
Total assets    7,030,512 7,660,856
    
LIABILITIES    
Current liabilities    
Trade and other payables  17  (188,870) (151,158)
Contingent consideration  13  (209,511) (309,717)
Total liabilities    (398,381) (460,875)
    
Net assets    6,632,131 7,199,981
    
EQUITY    
Called up share capital  18  268,078 268,078
Share premium account    – 7,008,838
Retained earnings    6,364,053 (76,935)
Total equity    6,632,131 7,199,981
    
Approved for issue by the Board of Directors on 17 June 2009 and signed on its behalf by:
Garry S Watson
Chairman
Accounts and Notes 29
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Group Cash flow Statement
f OR THE y EAR ENdEd 31 M ARCH 2009
    2009 2008
    £ £
Operating activities    
(Loss)/profit before tax    (1,255,001) 106,011
Adjustments to reconcile (loss)/profit before taxation to net cash flow  
from operating activities    
Depreciation of property, plant and equipment    12,399 8,278
Share-based payments expense    78,669 24,360
Decrease/(increase) on the revaluation of investments    377,815 (456,492)
Loss/(profit) on disposal of property, plant and equipment    1,615 (19)
Interest income    (214,675) (330,856)
Increase in investments    (1,063,732) (1,171,947)
Decrease/(increase) in trade and other receivables    367,652 (381,277)
(Decrease)/increase in trade and other payables    (47,934) 178,768
Net cash flow from operating activities    (1,743,192) (2,023,174)
    
Investing activities    
Acquisition of subsidiaries (net of cash acquired)    – 20,963
Purchase cost of property, plant and equipment    (31,314) (9,448)
Proceeds from disposal of property, plant and equipment    – 672
Interest received    214,675 330,856
Net cash flow from investing activities    183,361 343,043
    
Financing activities    
Expenses recovered in connection with share issue    – 7,250
Capital element of hire purchase contract    (27,195) –
Net cash flow from financing activities    (27,195) 7,250
    
Net decrease in cash and cash equivalents    (1,587,026) (1,672,881)
Cash and cash equivalents at the beginning of the year    4,808,870 6,481,751
Cash and cash equivalents at the end of the year    3,221,844 4,808,870
    
Accounts and Notes 30
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Company Cash flow Statement 
f OR THE y EAR ENdEd 31 M ARCH 2009
    2009 2008
    £ £
Operating activities    
Loss before tax    (567,850) (7,230)
Adjustments to reconcile loss before taxation to net cash flow  
from operating activities    
Decrease on the revaluation of investments    177,403 162,942
Interest income    (205,141) (322,437)
Increase in investments    (1,057,732) (1,121,946)
Decrease/(increase) in trade and other receivables    313,507 (559,362)
Increase/(decrease) in trade and other payables    37,712 (46,666)
Net cash flow from operating activities    (1,302,101) (1,894,699)
    
Investing activities    
Acquisition of subsidiaries (net of cash acquired)    – 20,959
Investment in subsidiary    (750,000) –
Interest received    205,141 322,437
Net cash flow from investing activities    (544,859) 343,396
    
Financing activities    
Expenses recovered in connection with share issue    – 7,250
Net cash flow from financing activities    – 7,250
    
Net decrease in cash and cash equivalents    (1,846,960) (1,544,053)
Cash and cash equivalents at the beginning of the year    4,616,263 6,160,316
Cash and cash equivalents at the end of the year    2,769,303 4,616,263
    
Accounts and Notes 31
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Statement of Changes in Equity 
fOR THE y EAR ENdEd 31 MARCH 2009 
 Attributable to equity holders of the Company
  Share Share Retained  Minority Total  
  capital premium earnings Total interest equity
 £ £ £ £ £ £
Group      
At 1 April 2007 268,078 7,001,588 (55,447) 7,214,219 – 7,214,219
Consolidated profit for the year – – 99,183 99,183 – 99,183
Expenses recovered in connection with share issue – 7,250 – 7,250 – 7,250
Total recognised income and expense 268,078 7,008,838 43,736 7,320,652 – 7,320,652
Share-based payments – – 24,360 24,360 – 24,360
At 1 April 2008 268,078 7,008,838 68,096 7,345,012 – 7,345,012
Consolidated loss for the year – – (1,235,902) (1,235,902) (17,327) (1,253,229)
Total recognised income and expense 268,078 7,008,838 (1,167,806) 6,109,110 (17,327) 6,091,783
Reduction in share premium account – (7,008,838) 7,008,838 – – –
Share-based payments – – 78,669 78,669 – 78,669
At 31 March 2009 268,078 – 5,919,701 6,187,779 (17,327) 6,170,452
      
  Share Share Retained  
  capital premium earnings Total
  £ £ £ £
Company     
At 1 April 2007  268,078 7,001,588 (44,312) 7,225,354
Loss for the year  – – (32,623) (32,623)
Expenses recovered in connection with share issue  – 7,250 – 7,250
Total recognised income and expense  268,078 7,008,838 (76,935) 7,199,981
At 1 April 2008  268,078 7,008,838 (76,935) 7,199,981
Loss for the year  – – (567,850) (567,850)
Total recognised income and expense  268,078 7,008,838 (644,785) 6,632,131
Reduction in share premium account  – (7,008,838) 7,008,838 –
At 31 March 2009  268,078 – 6,364,053 6,632,131
Accounts and Notes 32
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Notes to the financial Statements
fOR THE y EAR ENdEd 31 M ARCH 2009
1 Corporate information
The Group and Company financial statements of Braveheart Investment Group plc (the Company) for the year ended 31 March 2009 were 
authorised for issue by the Board of Directors on 17 June 2009 and the balance sheets were signed on the Board’s behalf by Garry Watson. 
Braveheart Investment Group plc is a company incorporated in the United Kingdom under the Companies Act 1985. The address of the 
registered office is detailed at the back of this report. The nature of the Group’s operations and its principal activities are set out in the 
Directors’ Report. The Company is registered in Scotland. The Company’s ordinary shares are traded on the London Stock Exchange 
(Alternative Investment Market) (AIM).
2 Accounting policies
(a) Basis of preparation
The Group and Company financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS)  
as adopted by the European Union as they apply to financial statements for the year ended 31 March 2009 and as applied in accordance with 
the provisions of the Companies Act 1985. The principal accounting policies adopted by the Group and by the Company are set out in the 
following notes.
The Company has taken advantage of the provision of section 230 of the Companies Act 1985 not to publish its own Income Statement.  
The amount of loss for the financial year dealt with in the financial statements of the Company is set out in Note 9 to the accounts. 
The financial statements have been prepared on a historical cost basis, except investments designated as fair value through profit or loss.  
The financial statements are presented in sterling and all values are rounded to the nearest pound (£) except where otherwise indicated.
(b) Changes in accounting policy 
The accounting policies adopted are consistent with those of the previous year.
During the year the Company recorded a prior year adjustment in respect of an increase in the value of an investment in a subsidiary arising 
from an increase in contingent consideration due on future exit values of certain portfolio companies (as fully detailed in Note 13).
(c) Basis of consolidation
The Group’s financial statements consolidate the results of Braveheart Investment Group plc and its subsidiaries (together referred to as the 
Group) drawn up to 31 March each year. The financial statements of the subsidiaries used in the preparation of the consolidated financial 
statements are prepared for the same reporting year as the parent company using consistent accounting policies. All intra-group balances, 
transactions, income and expenses are eliminated in full on consolidation.
The subsidiaries have been consolidated from the date of their acquisition, being the date on which the Group obtained control, and will 
continue to be consolidated until the date that such control ceases. Control comprises the power to govern the financial and operating policies 
of the subsidiary so as to obtain benefit from its activities and is achieved through direct ownership.
Group companies manage, and have an 89.29% equity interest in, Strathclyde Innovation Fund LP, which is included in the consolidated 
financial statements.
Minority interests represent the portion of profit or loss and net assets that is not held by the Group and are presented separately in the 
consolidated income statement and within equity in the consolidated balance sheet, separately from parent shareholders’ equity. 
(d) Use of estimates and assumptions
The preparation of the financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that 
affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions 
are based on historical experience and other factors that are believed to be reasonable under the circumstances, the results of which form the 
basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results 
may differ from these estimates. Where management’s judgement has been applied, this is noted in the relevant accounting policy.
The key assumptions concerning the future, and other key sources of estimating uncertainty at the balance sheet date, that have a significant 
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
Fair value of unquoted investments
Unquoted investments have been valued by the directors in compliance with the principles of the International Private Equity and Venture 
Capital Guidelines. The use of such valuation techniques requires the directors to make certain judgements including making assessments of 
future revenue and earnings of portfolio companies, appropriate multiples to apply, and marketability and other risk discounts and provisions, 
and hence they are subject to uncertainty. The fair value of unquoted investments at 31 March 2009 was £3,244,860 (2008: £2,427,874).
Accounts and Notes 33
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Notes to the financial Statements
CONTINUEd
Share-based payments
The Group measures the cost of equity-settled transactions by reference to the fair value of the equity instruments at the date at which they 
were granted. Judgement is required in determining the most appropriate valuation model for a grant of equity instruments depending on the 
terms and conditions of the grant. During the year the Group changed from using a Black-Scholes option pricing model to a Trinomial option 
pricing model for Performance Options. Management are also required to use certain assumptions in determining the most appropriate inputs 
to the valuation model, including expected life of the option, volatility, risk free rate and dividend yield. The assumptions and models used are 
fully disclosed in Note 19.
(e) Revenue recognition and segmental reporting
The Group earns fee income from the services it provides to its clients. Revenue is recognised at the fair value of the consideration received or 
receivable on fee income, excluding rebates. Fees earned for the provision of an ongoing service are recognised as that service is provided. Deal 
fees and facilitation fees are earned on individual transactions and related revenue is recognised on completion of the underlying transaction. 
Dividend income is recognised when the Group’s right to receive payment is established. 
Interest income is recognised using the effective interest method. Interest income is interest earned on bank deposit accounts and loan notes.
The business is regarded as one segment due to the nature of services provided and the methods used to provide these services. All operations 
are conducted in the United Kingdom.
(f) Taxation
The tax expense represents the sum of the tax currently payable and deferred tax. Current tax is based on taxable profit for the year. Taxable 
profit differs from net profit as reported in the income statement because it excludes items of income or expenses that are deductible in other 
years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that 
have been enacted or substantively enacted by the balance sheet date. 
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the 
financial statements and the corresponding tax bases used in the computation of taxable profits (temporary differences) and is accounted for 
using the balance sheet liability method. 
A deferred tax asset or liability shall be recognised for all taxable temporary differences, except to the extent that the deferred tax asset or 
liability arises from (a) the initial recognition of goodwill, (b) the initial recognition of an asset or liability in a transaction which (i) is not a 
business combination and (ii) at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss) or (c) relates to an 
investment in subsidiary. Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which 
deductible temporary differences can be utilised. Deferred tax is calculated at the tax rates that are expected to apply in the period when the 
liability is settled or the asset is realised using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
(g) Property, plant and equipment           
Property, plant and equipment are stated at cost less accumulated depreciation and any recognised impairment.    
Depreciation has been provided on the following basis annually: 
           
Computer equipment 33.3% reducing balance       
Fixtures and fittings 20% reducing balance 
              
The carrying value of assets and their useful lives are reviewed at each reporting date and if an indication of impairment exists, the assets will 
be written down to their recoverable amount and the impairment charged to the income statement in the period in which it arises.
(h) Impairment 
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when 
annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable 
amount is the higher of an asset or cash-generating unit’s fair value less costs to sell and its value in use, and is determined for an individual 
asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the 
carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. 
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects 
current market assessments of the time value of money and the risks specific to the asset. Impairment losses of continuing operations are 
recognised in the income statement in those expense categories consistent with the function of the impaired asset.
Accounts and Notes 34
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no 
longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is 
reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was 
recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed 
the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior 
years. Such reversal is recognised in profit or loss unless the asset is carried at the revalued amount, in which case the reversal is treated as a 
revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, 
less any residual value, on a systematic basis over its remaining useful life.
(i) financial assets 
Financial assets are recognised when the Group becomes party to the contracts that give rise to them and are classified at initial recognition as 
either financial assets at fair value through profit or loss or loans and receivables. Financial assets are derecognised when the rights to receive 
cash flows from the asset have expired or the Group has transferred substantially all the risks and rewards of the asset.
Investments at fair value through profit or loss  
Investments, which include equity and debt investments, are designated on initial recognition as financial assets at fair value through profit or 
loss. This measurement basis is consistent with the fact that that the Group’s performance in respect of its portfolio investments is evaluated 
on a fair value basis in accordance with an established investment strategy. When investments are recognised initially, they are measured at  
fair value. 
After initial recognition, the fair value of listed investments is determined by reference to bid prices at the close of business on the balance  
sheet date. 
Unlisted equity investments are measured at fair value by the directors in compliance with the principles of the International Private Equity  
and Venture Capital Guidelines, updated and effective 2 January 2007, as recommended by the European Venture Capital Association (EVCA).  
The fair value of unlisted equity investments is determined using one of the valuation methodologies set out in the guidelines. These include 
using recent arm’s length market transactions; reference to the current market value of another instrument, which is substantially the same; 
earnings or profit multiples; indicative offers; discounted cash flow analysis and pricing models. 
Wherever possible the Group uses valuation techniques which make maximum use of observable market-based inputs and accordingly the 
valuation methodology used most commonly by the Group is ‘price of most recent investment’. 
Where a fair value cannot be estimated reliably, the investment is reported at the carrying value at the previous reporting date unless there  
is objective evidence that the investment has since been impaired.
In calculating fair value, the directors have also taken account of rights which when exercised either enhance or diminish the value of  
the investment. These rights are reviewed on a regular basis to assess whether they are likely to be exercised. The extent of any impact  
on the value of the investments has been calculated on the basis that all quantifiable rights are, or are likely to be, exercisable, or that  
occur automatically on certain events taking place, such as exit and liquidation preferences on realisation. 
Debt investments are generally unquoted debt instruments which are convertible to equity at a future point in time. Such instruments are 
considered to be hybrid instruments containing a fixed rate debt host contract with an embedded equity derivative. The Group designates the 
entire hybrid contract at fair value through profit or loss on initial recognition and, accordingly, the embedded derivative is not separated from 
the host contract and accounted for separately. Given their short term nature, the fair value of debt investments is deemed to be cost less any 
impairment provision.
The gains and losses arising from changes in fair value are recognised in the income statement in the period in which they arise. 
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, and 
comprise trade and other receivables, other financial assets and cash and cash equivalents.
Trade receivables
Trade receivables are initially recognised at fair value and are carried at the lower of invoice value and recoverable amount. Where the time 
value of money is material, receivables are carried at amortised cost. Provision is made when there is objective evidence that a balance will  
not be recovered in full and balances are written off when the probability of recovery is assessed as remote.
Cash and cash equivalents           
Cash and cash equivalents comprise cash in hand and short term bank deposits. 
Accounts and Notes 35
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Notes to the financial Statements
CONTINUEd
(j) financial liabilities
Financial liabilities, which comprise trade and other payables, are initially recognised at fair value and are carried at amortised cost.
(k) The Company’s investment in its subsidiaries
In the Company’s accounts, investment in its subsidiary undertakings is stated at cost less any provision for impairment. 
(l) Contingent consideration
Contingent consideration is recognised at fair value when it is probable and can be measured reliably. 
(m) Leases             
Lease payments under operating leases, where a significant proportion of the risks and benefits remain with the lessor, are recognised on  
a straight-line basis over the term of the lease.
Hire purchase contracts, which transfer to the Group substantially all the risks and benefits incidental to ownership of the leased assets, are 
capitalised at the commencement of the lease at the fair value of the leased assets or, if lower, at the present value of the minimum lease 
payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of 
interest on the remaining balance of the liability. Finance charges are recognised in the income statement.
           
(n) Share capital
Financial instruments issued by the Group are treated as equity if the holders have only a residual interest in the Group’s assets after deducting 
all liabilities. The Group considers its capital to comprise its share capital and retained earnings. During the year the Group reduced its share 
premium account and transferred the full balance to retained earnings. 
The Group’s capital management objectives are:
•	 t o 	 e n s u re 	 t h e 	 G r o u p ’ s 	 a b i l i t y 	 t o 	 c o n t in ue 	 a s 	 a 	 goin g 	 c o n c e rn ;
•	 t o 	 e n s u re 	 a 	 s u f f i c ie n t 	 ca s h 	 b a la n c e 	 i s 	 m a in ta ined ; 	 a n d
•	 t o 	 m axim i se 	 re t u rn s 	 t o 	 s h a re h ol de rs.
The Group continuously monitors rolling cash flow forecasts to ensure sufficient cash is available for anticipated cash requirements. 
Investments are subject to detailed selection criteria and are monitored carefully by the Board.
Braveheart Ventures Ltd, a Group investment management subsidiary, is subject to external capital requirements imposed by the Financial 
Services Authority and as such must ensure that it has sufficient capital to satisfy these requirements. The Group ensures it remains compliant 
with these requirements as described in the financial statements of Braveheart Ventures Ltd.
There has been no change in capital management policies and procedures from the previous year.
(o) Share-based payments
The cost of equity-settled transactions with employees is measured by reference to the fair value of the instruments issued at the date at  
which they are granted and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees 
become fully entitled to the award. Fair value is determined using an appropriate pricing model. During the year the Group changed from 
using a Black-Scholes option pricing model to a Trinomial option pricing model for Performance Options. In valuing equity-settled transactions, 
no account is taken of any vesting conditions, other than conditions linked to the price of the shares of the Company (market conditions).
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are 
treated as vesting irrespective of whether or not the market condition is satisfied, provided that all other performance conditions are satisfied.
At each balance sheet date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period has 
expired and management’s best estimate of the achievement or otherwise of non-market conditions and of the number of equity instruments 
that will ultimately vest or, in the case of an instrument subject to a market condition, be treated as vesting as described above. The movement 
in cumulative expense since the previous balance sheet date is recognised in the income statement, with a corresponding entry in equity.
Where the terms of an equity-settled award are modified or a new award is designated as replacing a cancelled or settled award, the cost 
based on the original award terms continues to be recognised over the original vesting period. In addition, any expense is recognised over the 
remainder of the new vesting period for the incremental fair value of any modification, based on the difference between the fair value of the 
original award and the fair value of the modified award, both as measured on the date of the modification. No reduction is recognised if this 
difference is negative.
Accounts and Notes 36
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any cost not yet recognised in the 
income statement for the award is expensed immediately. Any compensation paid up to the fair value of the award at the cancellation or 
settlement date is deducted from equity, with any excess over fair value being treated as an expense in the income statement.
(p) Business combinations
The Group uses the purchase method of accounting to account for acquisition of subsidiaries. The cost of an acquisition is measured as the fair 
value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable 
to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially 
at their fair value at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair 
value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of 
the net assets of the subsidiary acquired, the difference is recognised directly in the income statement.
(q) New standards and interpretations not yet applied         
The International Accounting Standards Board and the International Financial Reporting Interpretations Committee have issued the following 
standards and interpretations with an effective date after the date of these financial statements: 
International Accounting Standards (IAS/IFRS) Effective for accounting periods commencing on or after
  
IFRS 2 Share-based payment: Vesting Conditions and Cancellations (Amendment) 1 January 2009
IFRS 3 Business Combinations (revised 2008)  1 July 2009
IFRS 7 Financial Instruments: Disclosures – Improving Disclosures about  
 Financial Instruments (Amendment) 1 January 2009
IFRS 8 Operating Segments  1 January 2009
IAS 1 Presentation of Financial Statements (revised 2007) 1 January 2009
IAS 1 and IAS 32 Presentation of Financial Statements – Puttable Financial Instruments and Obligations  
 Arising on Liquidation (Amendment)  1 January 2009
IAS 23 Borrowing costs (revised 2007)  1 January 2009
IAS 27 Consolidated and Separate Financial Statements (revised 2008)  1 July 2009
IAS 39* Financial Instruments: Recognition and Measurement – Eligible Hedged Items (Amendment)  1 July 2009
 Improvements to IFRSs  1 January 2009
  
International Financial Reporting Interpretations Committee (IFRIC) Effective for accounting periods commencing on or after
  
IFRIC 13 Customer Loyalty Programmes  1 July 2008
IFRIC 15* Agreements for the Construction of Real Estate 1 January 2009
IFRIC 16 Hedges of a Net Investment in a Foreign Operation  1 October 2008
IFRIC 17* Distributions of Non-Cash Assets to Owners  1 July 2009
IFRIC 18* Transfers of Assets from Customers  1 July 2009
  
IAS and IFRIC Effective for accounting periods ending on or after
IAS 39 and IFRIC 9 Embedded Derivatives (Amendment) 30 June 2009
* Not endorsed by the EU as at the date of approval of these financial statements. 
The amendment to IFRS 2 restricts the definition of vesting conditions to include only service conditions (requiring a specified period of service 
to be completed) and performance conditions (requiring the other party to achieve a personal goal or contribute to achieving a corporate 
target). All other features are not vesting conditions, and whereas a failure to achieve such a condition was previously regarded as a forfeiture 
(giving rise to a reversal of amounts previously charged to profit) it must be reflected in the grant date fair value of the award and treated as  
a cancellation, which results in either an acceleration of the expected charge, or a continuation over the remaining vesting period, depending 
on whether the condition is under the control of the entity or counterparty. The amendment is mandatory for periods beginning on or after  
1 January 2009 and the Group is currently assessing its impact on the financial statements, although it is not expected to be material.
The Group does not anticipate early adoption of the revised IFRS 3 and so will apply it prospectively to all business combinations on or after  
1 April 2010. Whilst it is not possible to estimate the outcome of adoption, the key features of the revised IFRS 3 include a requirement for 
acquisition-related costs to be expensed and not included in the purchase price, and for contingent consideration to be recognised at fair value 
on the acquisition date (with subsequent changes recognised in the income statement and not as a change to goodwill). The standard also 
changes the treatment of non-controlling interests (formerly minority interests) with an option to recognise these at full fair value as at  
the date control is obtained, with gains and losses recognised in the income statement.
Accounts and Notes 37
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Notes to the financial Statements
CONTINUEd
The amendment to IFRS 7, which is mandatory for periods beginning on or after 1 January 2009, requires enhanced disclosures about fair 
value measurements and liquidity risk. Among other things, the new disclosures: 
•	 c la r i f y 	 t h a t 	 t h e 	 exi st in g 	 I F R S 	 7 	 f a ir 	 va l ue 	 d i sc los u res 	 m u st 	 be 	 m a de 	 sep a r a t e ly 	 f o r 	 e ac h 	 c la ss 	 o f 	 f in a n c ia l 	 in st r u me n t;
•	 a dd 	 d i sc los u re 	 o f 	 a n y 	 c h a n ge 	 in 	 t h e 	 me t h od 	 f o r 	 de t e rm ini n g 	 f a ir 	 va l ue 	 a n d 	 t h e 	 re a so n s 	 f o r 	 t h e 	 c h a n ge ;	
•	 esta b l i s h 	 a 	 t h ree -le v e l 	 hie r a r c h y 	 f o r 	 m a k in g 	 f a ir 	 va l ue 	 me a s u re me n t s ; 	 a n d
•	 	 a dd 	 d i sc los u re , 	 f o r 	 e ac h 	 f a ir 	 va l ue 	 me a s u re me n t 	 in 	 t h e 	 sta t e me n t 	 o f 	 f in a n c ia l 	 pos i t ion , 	 o f 	 whi c h 	 le v e l 	 in 	 t h e 	 hie r a r c h y 	 w a s 	 u sed 	 a n d 	 a n y	
transfers between levels. 
IFRS 8 requires disclosure based on information presented to the Board on the financial performance of the Group’s operating segments.  
The Group will apply IFRS 8 for its accounting period commencing 1 April 2009, though does not consider that the future adoption of this 
standard will have any material impact on the financial statements as presented, given that the business is regarded as, and financial 
performance is reported to the Board in respect of, one segment, due to the nature of services provided and the methods used to provide 
these services. 
The revised IAS 1 will have no impact on the measurement of the Group’s results or net assets but will result in certain changes in the presentation 
of the Group’s financial statements from 2009 onwards. A Statement of Comprehensive Income, which can be presented in one of two ways,  
will be required, and the Statement of Changes in Equity will no longer be a primary statement.
IAS 23 has been revised to require capitalisation of borrowing costs when such costs relate to a qualifying asset. A qualifying asset is an asset 
that necessarily takes a substantial period of time to get ready for its intended use or sale. In accordance with the transitional provisions in  
the Standard, the Group will adopt this as a prospective change. Accordingly, borrowing costs will be capitalised on qualifying assets with a 
commencement date of 1 January 2009. No changes will be made for borrowing costs incurred prior to this date that have been expensed.
IAS 27 revised is effective for annual periods beginning on or after 1 July 2009, with earlier application only permitted when the revised IFRS 3 
is applied. The revised standard applies retrospectively, with some exceptions. IAS 27 revised no longer restricts the allocation to minority 
interest of losses incurred by a subsidiary to the amount of the non-controlling equity investment in the subsidiary. A partial disposal of equity 
interest in a subsidiary that does not result in a loss of control will be accounted for as an equity transaction and will have no impact on 
goodwill nor will it give rise to any gain or loss. Where there is loss of control of a subsidiary, any retained interest will have to be re-measured 
to fair value, which will impact the gain or loss recognised on disposal. The Group is currently assessing the impact on its financial statements 
from adopting IAS 27 revised.
The directors do not anticipate that the adoption of the remaining standards and interpretations will have a material impact on the Group’s 
financial statements in the period of initial application.
3 Revenue
Revenue is attributable to the principal activities of the Group. All revenue arose within the United Kingdom.
    Group Group
    2009 2008
    £ £
Deal fees    233,629 488,504
Client subscriptions    62,700 114,970
Monitoring fees    54,006 55,975
    350,335 659,449
            
Accounts and Notes 38
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 4 Employee benefits expense
    Group Group
    2009 2008
    £ £
Salaries    642,434 481,768
Social security costs     79,238 52,404
Expense of share-based payments    78,669 24,360
    800,341 558,532
The average number of employees (including executive directors) was as follows: 
 
    No. No.
 
    11 9
All of the Group’s employees are employed by Braveheart Ventures Ltd and work within management and administration. During the year 
Braveheart Ventures Ltd recharged £264,283 (2008: £nil) to the Company in respect of employee benefits expense.
The remuneration of the directors, who are key management personnel of the Group, is set out in the Directors’ Remuneration Report on 
pages 23 to 25.
5 Finance revenue
    Group Group
    2009 2008
    £ £
Bank interest receivable    192,111 323,507
Interest on loan notes    22,564 7,349
    214,675 330,856
6 Finance costs
    Group Group
    2009 2008
    £ £
Finance charges payable under hire purchase contract    991 –
7 (Loss)/profit before taxation
(Loss)/profit for the year has been arrived at after charging:
    Group Group
    2009 2008
    £ £
Depreciation of property, plant and equipment    12,399 8,278
Lease payments recognised as an operating lease (office rent)    39,924 31,861
Loss/(profit) on the disposal of plant, property and equipment    1,615 (19)
Auditors remuneration:
– audit of parent company     21,300 35,000
– audit of subsidiary companies    19,000 12,750
– audit-related regulatory reporting    3,000 5,500
– taxation compliance    4,500 4,500
Accounts and Notes 39
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Notes to the financial Statements
CONTINUEd
8 Taxation on (loss)/profit on ordinary activities 
 
    2009 2008
    £ £
UK corporation tax    – –
Deferred tax    (1,772) 6,828
Tax (credit)/charge in the income statement    (1,772) 6,828
  
Reconciliation of total tax  
(Loss)/profit before tax    (1,255,001) 106,011
  
Tax at the rate of 21% (2008: 20%)    (263,550) 21,202
Disallowed expenses    41,325 113,876
Unrealised loss/(profit) on revaluation of investments    41,756 (133,364)
Increase in unutilised tax losses    179,456 8,218
Other adjustments    (759) (3,104)
Total tax reported in the income statement    (1,772) 6,828
Deferred tax  
The deferred tax included in the balance sheet is as follows: 
 
    2009 2008
    £ £
Deferred tax liability   
Accelerated capital allowances    2,372 1,772
Total deferred tax liability    2,372 1,772
  
Deferred tax asset  
Trade losses    (2,372) –
Total deferred tax asset    (2,372) –
Total deferred tax as reported in the balance sheet    – 1,772
The Group has potential deferred tax assets in respect of:
•	 ex c ess 	 m a n a ge me n t 	 expe n ses 	 o f 	 £3 5 5 , 3 1 0 	 a r i s in g 	 f r o m 	 B r a v e h e a r t 	 In v est me n t 	 G r o u p 	 p l c ;
•	 ex c ess 	 m a n a ge me n t 	 expe n ses 	 o f 	 £ 9 4 8, 0 6 3 	 a r i s in g 	 f r o m 	 C a ledo nia 	 P o r t f ol io 	 R e a l i sa t io n s 	 L t d ; 	 a n d	
•	 u n u t i l i sed 	 t r a d in g 	 losses 	 o f 	 £7 2 1 ,4 2 4 	 in 	 B r a v e h e a r t 	 V e n t u res 	 L t d.	
In addition, the Group has a potential deferred tax asset in respect of unrealised losses on the revaluation of investments in the year  
of £198,836.
No deferred tax assets have been recognised in respect of these amounts as it is uncertain that there will be suitable taxable profits from 
which the future reversal of the deferred tax could be deducted.
9 Loss of the Parent Company
    2009 2008
    £ £
Loss of the Parent Company only    (567,850) (32,623)
Accounts and Notes 40
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 10 (Loss)/earnings per share
Basic (loss)/earnings per share have been calculated by dividing the (loss)/earnings attributable to equity holders of the parent by the weighted 
average number of ordinary shares in issue during the year.
Diluted (loss)/earnings per share is adjusted for share options granted where the exercise price is less than the average price of the ordinary 
shares during the year.
The calculations of (loss)/earnings per share are based on the following (loss)/profit and numbers of shares in issue:
 
    2009 2008
    £ £
(Loss)/profit for the year attributable to equity holders of the parent   (1,235,902) 99,183
   
    No. No.
Weighted average number of ordinary shares in issue:
For basic (loss)/earnings per ordinary share    13,403,895 13,403,895
Dilutive effect of exercisable options    – –
    13,403,895 13,403,895
The exercise price of all share options exceeded the average price of ordinary shares during the period in which they were outstanding, and 
accordingly no diluted earnings per share adjustment is required.
The Group acquired 100% of the issued ordinary share capital of Inkopo Ltd after the balance sheet date in a transaction involving the issue  
of the Company’s shares (see Note 25). 
11 Property, plant and equipment
   Fixtures &  Computer 
   fittings equipment Total
Group   £ £ £
    
Cost    
At 1 April 2007    27,572 30,328 57,900
Additions   1,529 7,919 9,448
Disposals   – (978) (978)
At 1 April 2008   29,101 37,269 66,370
Additions   6,049 25,265 31,314
Disposals   (2,403) (13,959) (16,362)
At 31 March 2009   32,747 48,575 81,322
Accumulated depreciation 
At 1 April 2007   13,059 18,624 31,683
Charge for year   3,103 5,175 8,278
Disposals   – (325) (325)
At 1 April 2008   16,162 23,474 39,636
Charge for year   3,226 9,173 12,399
Disposals   (1,722) (13,025) (14,747)
At 31 March 2009   17,666 19,622 37,288
Net Book Value
At 31 March 2009   15,081 28,953 44,034
At 31 March 2008   12,939 13,795 26,734
All of the above assets are held within the subsidiary company Braveheart Ventures Ltd.
Included within the net book value of £44,034 is £19,144 (2008: £nil) relating to an asset held under a hire purchase contract. The depreciation 
charged to the financial statements in the year in respect of such an asset amounted to £4,565 (2008: £nil).
Accounts and Notes 41
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Notes to the financial Statements
CONTINUEd
12 Investments at fair value through profit or loss
  Listed  Unlisted 
 Equity Loan Sub-total Equity Loan Sub-total Total
Group £ £ £ £ £ £ £
       
Fair value at 1 April 2007 135,845 40,000 175,845 720,311 – 720,311 896,156
Additions at cost 98,639 – 98,639 939,845 183,463 1,123,308 1,221,947
Transfers 58,695 – 58,695 (58,695) – (58,695) –
Disposals proceeds – – – (1,650) – (1,650) (1,650)
Change in fair value in year (146,458) (40,000) (186,458) 673,989 (29,389) 644,600 458,142
Fair value at 1 April 2008 146,721 – 146,721 2,273,800 154,074 2,427,874 2,574,595
Additions at cost – – – 556,126 507,606 1,063,732 1,063,732
Conversions – – – 208,846 (208,846) – –
Change in fair value in year (131,069) – (131,069) (21,746) (225,000) (246,746) (377,815)
Fair value at 31 March 2009 15,652 – 15,652 3,017,026 227,834 3,244,860 3,260,512
  Listed  Unlisted 
 Equity Loan Sub-total Equity Loan Sub-total Total
Company £ £ £ £ £ £ £
       
Fair value at 1 April 2007 135,845 40,000 175,845 720,311 – 720,311 896,156
Additions at cost 98,639 – 98,639 839,844 183,463 1,023,307 1,121,946
Transfers 58,695 – 58,695 (58,695) – (58,695) –
Disposals proceeds – – – (1,650) – (1,650) (1,650)
Change in fair value in year (146,458) (40,000) (186,458) 54,555 (29,389) 25,166 (161,292)
Fair value at 1 April 2008 146,721 – 146,721 1,554,365 154,074 1,708,439 1,855,160
Additions at cost – – – 556,126 501,606 1,057,732 1,057,732
Conversions – – – 208,846 (208,846) – –
Change in fair value in year (131,069) – (131,069) 178,666 (225,000) (46,334) (177,403)
Fair value at 31 March 2009 15,652 – 15,652 2,498,003 221,834 2,719,837 2,735,489
Investments, which include equity and debt investments, are designated on initial recognition as financial assets at fair value through profit or loss. 
This measurement basis is consistent with the fact that the Group’s performance in respect of its portfolio investments is evaluated on a fair value 
basis in accordance with an established investment strategy. When investments are recognised initially, they are measured at fair value.
After initial recognition, the fair value of listed investments is determined by reference to bid prices at the close of business on the balance  
sheet date. 
Unlisted equity investments are measured at fair value by the directors in compliance with the principles of the International Private Equity and 
Venture Capital Guidelines, updated and effective 2 January 2007, as recommended by the European Venture Capital Association (EVCA).  
The fair value of unlisted equity investments is determined using one of the valuation methodologies set out in the guidelines. These include 
using recent arm’s length market transactions; reference to the current market value of another instrument, which is substantially the same; 
earnings or profit multiples; indicative offers; discounted cash flow analysis and pricing models. 
Wherever possible the Group uses valuation techniques which make maximum use of observable market-based inputs and accordingly the 
valuation methodology used most commonly is ‘price of most recent investment’, which accounted for 82% (2008: 95%) of the value of the 
Group’s unlisted equity investments.
Details of investments where the nominal value of the holding in the undertaking is 20% or more of any class of share are as follows:
Name of Company Holding % of shares held Nature of Business
Verbalis Ltd ‘A’ Ordinary shares 100% Design and production of automated language translation systems.
The above shareholding, which is held by Caledonia Portfolio Realisations Ltd, represents a 20% aggregate shareholding in Verbalis Ltd. In the 
opinion of the directors, this shareholding does not entitle the Company to exert significant or a dominant influence over the portfolio company.
Accounts and Notes 42
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 13 Investment in subsidiaries
Company     £
Cost   
At 1 April 2007     224,190
Additions     50,004
At 31 March 2008      274,194
Increase in investment value     309,717
At 31 March 2008 (restated)     583,911
Additions (Note 22)     750,000
Impairment in investment value      (100,206)
At 31 March 2009     1,233,705
The Company has the following interests in subsidiary undertakings:
Name Country of incorporation Nature of business % Interest
   
Braveheart Ventures Ltd Scotland Investment management 100%
Caledonia Portfolio Realisations Ltd Scotland Investment management 100%
Caledonia LP Ltd Scotland Investment management 100%
Strathclyde Innovation Fund GP Ltd Scotland Investment management 100%
Caledonia Portfolio Ltd Scotland Dormant 100%
Caledonia Portfolio Realisations Ltd (CPR) was acquired on 4 April 2007. CPR is an unlisted company based in Scotland specialising in making 
investments in technology businesses. The acquisition consisted of a cash consideration of £50,000 and contingent consideration based on 
future exit values of the portfolio, and has been accounted for using the purchase method of accounting. At the date of acquisition contingent 
consideration was determined to be £nil. At 31 March 2008, an unrealised revaluation gain in respect of CPR portfolio investments resulted  
in a contingent consideration liability of £309,717. This liability was originally incorrectly recorded in the accounts of CPR whereas the liability 
should have been recorded in the accounts of the Company together with a corresponding increase in the value of the Company’s investment 
in CPR, and this has been corrected by way of a prior year adjustment.
At 31 March 2009, an unrealised revaluation loss in respect of CPR portfolio investments has resulted in a reduction of £100,206 in both the 
contingent consideration liability and the value of the Company’s investment in CPR.
Group entities act as General Partner to, and have an interest in, the following limited partnership:
Name Place of business % interest
  
Strathclyde Innovation Fund LP  Scotland 89.29%
Strathclyde Innovation Fund LP has been included in the consolidated financial statements since 1 April 2008. 
14 Contingent consideration/Goodwill
In accordance with IFRS 3, the fair value of the contingent consideration arising on future exit values of the CPR portfolio (as described in Note 13)  
is recognised as goodwill.
However, given that the underlying assets of CPR are held at fair value, any goodwill so recognised is immediately written off or written back 
to the income statement.
Accounts and Notes 43
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Notes to the financial Statements
CONTINUEd
15 Trade and other receivables
  Group Group Company Company
  2009 2008 2009 2008
  £ £ £ £
Trade receivables  48,479 147,999 – –
Prepayments and accrued income  29,925 180,103 22,177 166,157
Amounts due from related parties  – – 248,438 324,588
Other receivables  21,400 114,777 21,400 114,777
  99,804 442,879 292,015 605,522
Due to the short term maturity of trade receivables, the directors consider the carrying amounts to approximate their fair value. All receivables 
are non-interest bearing and unsecured. No impairment provision is considered necessary by reference to past default experience.
16 Cash and cash equivalents
  Group Group Company Company
  2009 2008 2009 2008
  £ £ £ £
Cash at bank and on hand  3,221,844 4,808,870 2,769,303 4,616,263
Cash balances are held with Bank of Scotland plc and The Royal Bank of Scotland plc and earn interest at floating rates based on daily bank 
deposit rates.
17 Trade and other payables
  Group Group Company Company
  2009 2008 2009 2008
  £ £ £ £
Trade payables  24,549 78,997 3,625 56,797
Amounts due to related parties  – – 113,100 40,694
Other taxes and social security  45,949 40,029 – –
Accruals   102,195 79,686 72,145 53,667
  172,693 198,712 188,870 151,158
Due to the short term maturity of trade payables, the directors consider the carrying amounts to approximate their fair value. Trade payables 
are non-interest bearing and are normally settled on 30-day terms.
18 Share capital
    2009 2008
    £ £
Authorised
33,645,000 ordinary shares of 2p each    672,900 672,900
   
Allotted, called up and fully paid   
13,403,895 ordinary shares of 2p each    268,078 268,078
The Company has one class of ordinary shares. All shares carry equal voting rights, equal rights to income and distribution of assets on 
liquidation or otherwise, and no right to fixed income.
Accounts and Notes 44
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 19 Share-based payments           
The Company operates the Braveheart Investment Group plc Executive Share Option Scheme 2006 (the Scheme), which comprises Part A, a 
share option scheme approved by HMRC (the Approved Scheme) and Part B, an unapproved share option scheme (the Unapproved Scheme). 
Historically, the Scheme was open to all directors and employees of the Group, although non-executive directors could only participate in Part B. 
The Scheme is now open only to executive directors and employees.
Options are granted by the Board taking into account the need to motivate, retain and recruit high calibre employees and with regard to the 
contribution that such employees are expected to make in achieving the Company’s objectives.
Options granted under the Scheme are categorised as either Employment Options or Performance Options. Employment Options may be 
granted under either Part A or Part B. All Performance Options are granted under Part B.
Employment Options vest and become exercisable on the third anniversary of date of grant, and generally lapse on the earlier of cessation  
of employment (or six months thereafter if options have vested at cessation date) or the 10th anniversary of date of grant.
Performance Options have vesting conditions linked to the growth in the Company’s market capitalisation from the date of grant 
(Performance Conditions). If a Performance Condition is not met, the related Performance Option lapses at the end of the relevant 
measurement period.
Otherwise, Performance Options vest on attainment of the Performance Condition and become exercisable on the 1st anniversary of the date 
of the Performance Condition being met, and lapse on the 10th anniversary of date of grant.
During the year ended 31 March 2008, on 18 June 2007, 81,311 Employment Options and 762,443 Performance Options were granted.  
No options lapsed or were exercised.
During the current year ended 31 March 2009, on 25 June 2008, 139,077 Employment Options and 150,306 Performance Options were 
granted, and on 8 December 2008, 65,896 Employment Options and 56,116 Performance Options were granted. No Employment Options 
were exercised, and 23,365 lapsed. No Performance Options have vested or were exercised, and 312,183 lapsed, the majority due to the 
related Performance Condition not having been met. 
The movement in Share Options is summarised below:
   Weighted No. of No. of No. of   Weighted 
  At average options options options At  average   
Date  1 April exercise granted in exercised in lapsed in 31 March Exercise exercise Date first Expiry 
of grant 2007 price year year year 2008 price price exercisable date
         
Employment Options  
granted under Part A 
18 June 2007  – – 56,120 – – 56,120 £1.645 £1.645 18 June 2010 17 June 2017
          
Employment Options  
granted under Part B          
18 June 2007  – – 25,191 – – 25,191 £1.645 £1.645 18 June 2010 17 June 2017
          
Performance Options  
granted under Part B          
18 June 2007  – – 762,443 – – 762,443 £1.645 £1.645 18 June 2010 17 June 2017
Accounts and Notes 45
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Notes to the financial Statements
CONTINUEd
   Weighted No of No of No of   Weighted 
  At average options options options At  average   
Date  1 April exercise granted in exercised in lapsed in 31 March Exercise exercise Date first Expiry 
of grant 2008 price year year year 2009 price price exercisable date
Employment Options  
granted under Part A 
18 June         18 June 17 June
2007 56,120  – – (11,457) 44,663 £1.645  2010 2017
25 June         25 June 24 June  
2008 –  95,798 – (11,908) 83,890 £1.15  2011 2018
8 December          8 December 7 December 
2008 –  65,896 – – 65,896 £0.35 £0.99 2011 2018
  56,120 £1.645 161,694 – (23,365) 194,449  £0.99  
         
Employment Options  
granted under Part B       
18 June         18 June 17 June 
2007 25,191  – – – 25,191 £1.645  2010 2017
25 June         25 June 24 June 
2008 –  43,279 – – 43,279 £1.15 £1.33 2011 2018
  25,191 £1.645 43,279 – – 68,470  £1.33  
          
Performance Options  
granted under Part B       
18 June         18 June 17 June
2007 762,443  – – (306,171) 456,272 £1.645  2010 2017
25 June         25 June 24 June  
2008 –  150,306 – (6,012) 144,294 £1.15  2009 2018
8 December          8 December 7 December  
2008 –  56,116 – – 56,116 £0.35 £1.43 2009 2018
  762,443 £1.645 206,422 – (312,183) 656,682  £1.43  
The weighted average exercise price of the total number of options granted and not exercised at 31 March 2009 was £1.33 (2008: £1.645).
The Performance Conditions attached to the Performance Options are as follows:
  Percentage of the grant to which the  
Date of grant Performance condition performance condition applies 
  
18 June 2007 The Company’s market capitalisation exceeds the benchmark price  33.33% 
 by 50% for 5 consecutive business days at any time before the 1st 
 anniversary of date of grant.
  The Company’s market capitalisation exceeds the benchmark price 33.33% 
by 100% for 5 consecutive business days at any time before the 2nd  
anniversary of date of grant.
  The Company’s market capitalisation exceeds the benchmark price  33.33% 
by 150% for 5 consecutive business days at any time before the 3rd  
anniversary of date of grant.
 
25 June 2008  The Company’s market capitalisation exceeds the benchmark price  100% 
by 25% for 5 consecutive business days at any time before the 1st  
anniversary of date of grant.  
8 December 2008  The Company’s market capitalisation exceeds the benchmark price  100% 
by 25% for 5 consecutive business days at any time before the 1st  
anniversary of date of grant.  
The benchmark price is the option exercise price multiplied by the number of ordinary shares of 2p each in the issued share capital of the 
Company on the date of grant of the related option.
Accounts and Notes 46
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 The option exercise price is the closing mid-market price on AIM of an ordinary share of 2p each in Braveheart Investment Group plc share on 
the last business day prior to the date of the grant.
 
The charge made in respect of the fair value of options granted was:
  
    2009 2008
    £ £
Expense arising from equity-settled share-based payments transactions   78,669 24,360
The fair value of all options granted during 2008 was originally estimated at the date of grant using a Black-Scholes option pricing model.  
The Company now believes that given the nature of the Performance Conditions it is more appropriate to use a Trinomial option pricing model 
for Performance Options. Accordingly, the fair value of all Performance Options granted to date has been calculated using such a model.  
The fair value of Employment Options continues to be calculated using a Black-Scholes option pricing model. 
The following assumptions have been used in calculating the fair value of share options:
 Options granted in year ended 31 March
 2009 2008
   Employment Performance  Employment Performance  
   options options  options options
Valuation method  Black-Scholes Trinomial Black-Scholes Trinomial
Risk free interest rate  2.0-4.5% 2.0-4.5% 4.5% 4.5%
Expected life (average years)  3 2 3 2
Expected volatility  28-33% 28-33% 28% 28%
Dividend yield  0% 0% 0% 0%
The expected life of the options is the expected average point at which an option becomes exercisable. The expected volatility is based on 
historical volatility of the share price of the Company and of quoted comparable companies over the most recent period at the date of grant 
that is commensurate with the average expected life of the option. The weighted average share price used in each calculation was equal to  
the option exercise price. 
   
           
20 Operating lease commitments 
The Group entered into a commercial lease on its office premises in Perth in June 2005 for a five-year period. The Group also entered into  
a commercial lease on its office premises in London in November 2008 for a 12-month period. Renewals are at the option of the lessor.  
There are no restrictions placed upon the lessee by entering into these leases. 
Future minimum rentals payable under operating leases are as follows: 
    2009 2008
    £ £
Future minimum payments due:    
Not later than one year    48,730 30,730
In two to five years    5,122 35,852
    53,852 66,582
21 Borrowings
The Group entered into a hire purchase contract for the purchase of computer equipment in November 2008. The asset is included under 
computer equipment in Note 11. The effective interest rate is 7.6%.
Future minimum rentals payable under the hire purchase contract are as follows: 
    2009 2008
    £ £
Future minimum payments due:    
Not later than one year    9,875 –
In two to five years    17,320 –
    27,195 –
Accounts and Notes 47
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Notes to the financial Statements
CONTINUEd
At 31 March 2009, Strathclyde Innovation Fund LP had received £23,758 (2008: £nil) from limited partners unrelated to the Group to cover 
partnership obligations. Such sums are treated as long term loans from limited partners.
22 Related party disclosures
Trade and other receivables (Note 15) include the following amounts due from subsidiary undertakings:
    2009 2008
    £ £
Braveheart Ventures Ltd    – 274,587
Caledonia Portfolio Realisations Ltd    50,453 50,001
Caledonia LP Ltd    197,985 –
    248,438 324,588
Trade and other payables (Note 17) include the following amounts due to subsidiary undertakings:
    2009 2008
    £ £
Braveheart Ventures Ltd    113,100 40,694
All above amounts are unsecured, interest free and repayable on demand.
During the year, the Company subscribed for 7,500,000 redeemable preference shares of 10p each in Braveheart Ventures Ltd at an aggregate 
cost of £750,000.
Transactions between the Company and its subsidiaries are eliminated on consolidation.
Certain executive and non-executive directors are clients of Braveheart Ventures Ltd. Investment transactions executed on their behalf are 
carried out on the same commercial terms as all other clients of Braveheart Ventures Ltd. Fees arising during the year from such transactions 
were as follows: Garry Watson £1,370, Edward Cunningham £1,023 and Donald Turner £112.
 
23 Financial risk management objectives and policies (Group and Company)
The Group and Company’s financial instruments comprise investments designated at fair value through profit or loss, cash and various items 
such as trade and other receivables, and trade and other payables, all of which arise directly from its normal operations. 
The carrying values of all of the Group and Company’s financial instruments approximate their fair values at 31 March 2009 and 31 March 2008. 
The accounting policies described in Note 2 outline how the financial instruments are measured.
An analysis of the balance sheet sums, relevant to an analysis of risk management, is as follows:
 Financial instruments  
  Designated at 
  fair value though Loans and Non-financial Balance sheet
  profit or loss receivables assets total
Group  £ £ £ £
2009    
Investments  3,260,512 – – 3,260,512
Trade and other receivables  – 69,879 29,925 99,804
Cash and cash equivalents  – 3,221,844 – 3,221,844
  3,260,512 3,291,723 29,925 6,582,160
    
2008    
Investments  2,574,595 – – 2,574,595
Trade and other receivables  – 262,776 180,103 442,879
Current tax asset  – 24,577 – 24,577
Cash and cash equivalents  – 4,808,870 – 4,808,870
  2,574,595 5,096,223 180,103 7,850,921
Accounts and Notes 48
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009  Financial instruments  
  Designated at 
  fair value though Loans and Non-financial Balance sheet
  profit or loss receivables assets total
Company  £ £ £ £
2009    
Investments  2,735,489 – 1,233,705 3,969,194
Trade and other receivables  – 269,838 22,177 292,015
Cash and cash equivalents  – 2,769,303 – 2,769,303
  2,735,489 3,039,141 1,255,882 7,030,512
    
2008    
Investments  1,855,160 – 583,911 2,439,071
Trade and other receivables  – 439,365 166,157 605,522
Cash and cash equivalents  – 4,616,263 – 4,616,263
  1,855,160 5,055,628 750,068 7,660,856
    
   Other financial Liabilities not 
   liabilities at within the scope Balance sheet 
   amortised cost of IAS 39 total
Group   £ £ £
2009    
Trade and other payables   126,744 45,949 172,693
Contingent consideration   – 209,511 209,511
Deferred income   22,585 – 22,585
Borrowings   23,758 27,195 50,953
Deferred tax liability   – – –
   173,087 282,655 455,742
2008    
Trade and other payables   158,683 40,029 198,712
Contingent consideration   – 309,717 309,717
Deferred income   22,442 – 22,442
Borrowings   – – –
Deferred tax liability   1,772 – 1,772
   182,897 349,746 532,643
   Other financial Liabilities not 
   liabilities at within the scope Balance sheet 
   amortised cost of IAS 39 total
Company   £ £ £
2009    
Trade and other payables   188,870 – 188,870
Contingent consideration   – 209,511 209,511
   188,870 209,511 398,381
    
2008    
Trade and other payables   151,158 – 151,158
Contingent consideration   – 309,717 309,717
   151,158 309,717 460,875
    
One of the Group’s principal objectives and policies is to achieve income and capital gains through investment in equity shares in a portfolio of 
UK companies, the majority of which are unlisted.
Through its normal operations the Group is exposed to a number of financial risks, namely credit risk, liquidity risk and market risk. The Board 
reviews and agrees policies for managing each of these risks as summarised below.
Accounts and Notes 49
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Notes to the financial Statements
CONTINUEd
Credit risk
Credit risk arises from the exposure to the risk of loss if the counterparty fails to perform its financial obligations to the Group. The Group’s 
financial assets predominantly comprise investments designated at fair value through profit or loss, and cash. In accordance with its Investment 
Policy, the Group seeks to manage credit risk related to its investments through detailed investment selection criteria and diversification and by 
placing limits on individual investments. In accordance with its Treasury Policy, the Group seeks to mitigate this risk on cash by placing funds only 
with banks with high credit ratings assigned by international credit-rating agencies. 
The Group has no significant concentration of credit risk within any of its other financial assets. Included within such other financial assets are 
balances which are past due at the reporting date for which the Group has not provided as there has not been a significant change in their credit 
quality and which the Group believes are fully recoverable. The age profile of the Group and Company’s other financial assets is as follows:
 Neither past due  Less than 3 to 12 More than  
 nor impaired 3 months months 1 year Total
Group  £ £ £ £ £
2009      
Trade receivables  31,432 2,300 14,747 – 48,479
Other receivables  51,325 – – – 51,325
   82,757 2,300 14,747 – 99,804
      
2008      
Trade receivables  116,156 2,350 29,493 – 147,999
Other receivables  319,457 – – – 319,457
   435,613 2,350 29,493 – 467,456
      
 Neither past due  Less than 3 to 12 More than  
 nor impaired 3 months months 1 year Total
Company  £ £ £ £ £
2009      
Amounts due from related parties  248,438 – – – 248,438
Other receivables  43,577 – – – 43,577
   292,015 – – – 292,015
      
2008      
Amounts due from related parties  324,588 – – – 324,588
Other receivables  280,934 – – – 280,934
   605,522 – – – 605,522
The Group considers its exposure to credit risk is negligible.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group seeks to manage its liquidity risk by holding sufficient cash reserves to meet foreseeable needs, and by investing cash assets safely. 
The Group continuously monitors rolling cash flow forecasts to ensure sufficient cash is available for anticipated cash requirements and,  
in accordance with its Treasury Policy, the Group only invests cash assets with reputable counterparties. 
Accounts and Notes 50
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 The maturity profile of the Group and Company’s financial liabilities is as follows: 
 On  Less than 3 to 12 More than  
 demand 3 months months 1 year Total
Group  £ £ £ £ £
2009     
Trade and other payables 126,112 632 – – 126,744
Other liabilities 22,585 – 9,875 41,078 73,538
 148,697 632 9,875 41,078 200,282
     
2008     
Trade and other payables 111,583 – 47,100 – 158,683
Other liabilities 22,442 – – 1,772 24,214
 134,025 – 47,100 1,772 182,897
     
 On  Less than 3 to 12 More than  
 demand 3 months months 1 year Total
Company  £ £ £ £ £
2009     
Trade and other payables 75,770 – – – 75,770
Amounts due to related parties 113,100 – – – 113,100
 188,870 – – – 188,870
     
2008     
Trade and other payables 63,364 – 47,100 – 110,464
Amounts due to related parties 40,694 – – – 40,694
 104,058 – 47,100 – 151,158
     
Market risk
Market risk is the risk that changes in market conditions such as equity prices, interest rates and foreign exchange rates will have an adverse 
impact on the Group’s financial position or results.
Equity price risk
The Group is exposed to equity price risk due to uncertainties about future values of its portfolio of listed and unlisted equity investments.  
The Group manages such equity price risk in a similar way to credit risk through detailed investment selection criteria and diversification  
and by placing limits on individual investments. Investments are monitored carefully and the Board reviews the portfolio on a regular basis.
It is estimated that the maximum effect of a 10% fall in market prices to which the Group is exposed would be an increase in the loss before 
tax for the 12 months to 31 March 2009 of £303,268 (2008: reduction in profit before tax of £242,052).
Interest rate risk
The Group finances its operations through equity funding as opposed to debt and therefore minimises its exposure to interest rate risks.  
The Group’s financial instruments are non-interest bearing, with the exception of loan notes which attract fixed rate interest, and cash 
balances which attract variable interest rates determined with reference to the bank interest rate.
Accounts and Notes 51
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 The interest rate profile of the Group’s financial instruments is as follows: 
   Fixed rate Variable rate Interest free Total
Group  £ £ £ £
2009    
Financial assets    
Investments: equity  – – 3,032,678 3,032,678
Investments: loan notes  227,834 – – 227,834
Cash and cash equivalents  – 3,221,844 – 3,221,844
Other financial assets  – – 99,804 99,804
  227,834 3,221,844 3,132,482 6,582,160
    
Financial liabilities    
Deferred consideration  – – 209,511 209,511
Other financial liabilities  – 27,195 219,036 246,231
  – 27,195 428,547 455,742
    
2008    
Financial assets    
Investments: equity  – – 2,420,521 2,420,521
Investments: loan notes  154,074 – – 154,074
Cash and cash equivalents  – 4,808,870 – 4,808,870
Other financial assets  – – 467,456 467,456
  154,074 4,808,870 2,887,977 7,850,921
    
Financial liabilities    
Trade and other payables  – – 198,712 198,712
Deferred consideration  – – 309,717 309,717
Other financial liabilities  – – 24,214 24,214
  – – 532,643 532,643
It is estimated that the maximum effect of a one percentage point (100 basis points) fall in interest rates to which the Group is exposed would 
be an increase in loss before tax for the 12 months to 31 March 2009 of £32,215 (2008: reduction in profit before tax of £47,414).
Foreign currency risk
The Group is not exposed to foreign currency risk as all of its financial instruments are denominated in sterling.
24 Ultimate controlling party
There is no ultimate controlling party.
25 Post balance sheet acquisition
On 5 June 2009, the Company acquired the entire issued share capital of Inkopo Ltd, a specialist investment business based in Yorkshire. 
The initial consideration comprised a cash payment of £75,000 and 511,937 ordinary shares in Braveheart. In addition, at the date of acquisition 
Inkopo had approximately £52,000 of net debt. Two further tranches of consideration are payable on the first and second anniversary of 
completion (Contingent Consideration). The Contingent Consideration will be settled by the further issue of ordinary shares in Braveheart or,  
at Braveheart’s discretion, in cash or by the issue of unsecured loan notes. The Contingent Consideration will be based on (i) Inkopo’s turnover 
for the years ending 31 March 2010 and 31 March 2011, and (ii) the attainment by Inkopo of certain other non-turnover based operating targets 
benefitting the Group. The total aggregate consideration is capped at £1.31m irrespective of any over performance of Inkopo’s targets.  
All Braveheart ordinary shares issued as consideration will be valued at a price of 39.2p, representing a one-third premium to the average closing 
price of Braveheart shares on the five days prior to 15 May 2009, being the date on which heads of agreement were signed. 
Due to the proximity of the date of approval of the financial statements to the date of acquisition there has been insufficient time available  
to enable the identification of all assets, liabilities and contingent liabilities existing at date of acquisition and to perform a full and reliable fair 
value exercise thereon. Consequently, full disclosure as set out in IFRS 3 ‘Business combinations’ has not been given as it is impracticable to 
provide this information. 
Notes to the financial Statements
CONTINUEd
Accounts and Notes 52
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Notice of Annual General Meeting
BRAVEHEART INVESTMENT GROUP PLC (THE COMPANy)
(REGISTEREd IN SCOTLANd WITH COMPANy NUMBER SC247376)
NOTICE IS HEREBY GIVEN that an Annual General Meeting of the Company will be held at The Centenary Suite, St Johnstone Football Club, 
McDiarmid Park, Crieff Road, Perth, PH1 2SJ on Wednesday 9 September 2009 at 12.30pm to consider the following resolutions: 
Ordinary Business 
To consider and, if thought fit, pass the following resolutions which will be proposed as Ordinary Resolutions of the Company:
Resolution 1
THAT the audited accounts of the Company for the financial year ended 31 March 2009 and the reports of the directors and auditors thereon, 
be received.
Explanation of Resolution 1: The directors are required by law to present to the shareholders of the Company at a general meeting the audited 
accounts of the Company for the financial year ended 31 March 2009 and the reports of the directors and auditors thereon. The report of 
directors and the audited accounts have been approved by the directors, and the report of the auditors has been approved by the auditors.  
A copy of each of these documents may be found in the Annual Report of the Company.
Resolution 2
THAT Grant Thornton UK LLP, having been appointed by the Board since the last Annual General Meeting, be re-appointed as auditors of the 
Company to hold office until the conclusion of the next general meeting of the Company before which audited accounts are laid.
Explanation of Resolution 2: The auditors are responsible for examining the annual accounts of the Company and forming an opinion as to 
whether or not they give a true and fair view of its results and financial position. It is a requirement of law that the Company appoint auditors 
at each meeting at which accounts are presented to its shareholders, such appointment to continue until the next meeting at which accounts 
are presented.
Resolution 3
THAT the directors be authorised to determine the remuneration of the auditors.
Explanation of Resolution 3: The resolution gives the directors of the Company the authority to determine the remuneration paid to the auditors for 
the next financial year. The amount of the remuneration for the next financial year will be disclosed in the next audited accounts of the Company.
Resolution 4
THAT Garry Sanderson Watson, who retires by rotation under article 107.1 of the Company’s Articles of Association, be re-elected as a 
director of the Company.
Explanation of Resolution 4: Garry Sanderson Watson, a director of the Company, is retiring by rotation pursuant to the requirements of the 
Company’s Articles of Association and is making himself available for re-election. Biographical details for Mr Watson are shown on page 19  
of the Annual Report.
Resolution 5
THAT Carolyn Smith, who retires by rotation under article 107.1 of the Company’s Articles of Association, be re-elected as a director of  
the Company.
Explanation of Resolution 5: Carolyn Smith, a Director of the Company, is retiring by rotation pursuant to the requirements of the Company’s 
Articles of Association and is making herself available for re-election. Biographical details for Ms Smith are shown on page 19 of the Annual Report.
 
Resolution 6
THAT Colin Craigie Grant, having been appointed by the Board since the last Annual General Meeting, be re-elected as a director of  
the Company.
Explanation of Resolution 6: Colin Grant was elected a director of the Company by the Board on 15 October 2008 and pursuant to the 
requirements of the Company’s Articles of association is making himself available for re-election. Biographical details for Mr Grant are shown 
on page 19 of the Annual Report.
53
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Notice of Annual General Meeting
CONTINUEd
Special Business 
To consider and, if thought fit, pass the following resolution which will be proposed as a Special Resolution of the Company:
Resolution 7
THAT the limits to the Company’s Share Option Scheme approved by the members (Option Scheme) be increased from 10% to 15% of the 
Company’s issued share capital from time to time and that, in addition to those powers currently conferred upon the directors and in the 
exercise of the existing authorities granted pursuant to section 80 of the Companies Act 1985 (the Act), the directors be and are hereby 
empowered pursuant to section 95 of the Act to allot equity securities (as defined in section 94 of the Act) as if subsection 89(1) of the Act  
did not apply to any such allotment, provided that this additional power shall (i) be limited to the allotment of equity securities pursuant to  
the foregoing increase in the limits to the Option Scheme not exceeding 5% of the enlarged share capital of the Company from time to time; 
and (ii) expire on 16 May 2011, except that the Company may before such expiry make offers or agreements which would or might require 
equity securities to be allotted after such expiry and notwithstanding such expiry the directors may allot equity securities in pursuance of such 
offer or agreements.
Explanation of Resolution 7: On 16 May 2006 the members of the Company approved the adoption of the Option Scheme limited to 10% of 
the enlarged share capital of the Company from time to time and the allotment of equity securities in satisfaction of options exercised under 
the Option Scheme. The directors wish to increase the limits to the Option Scheme, and the number of equity securities which can be allotted 
under the Option Scheme without statutory pre-emption rights applying, to 15% of the enlarged share capital of the Company from time to 
time. The directors believe that an increase in the option pool will enable it to utilise incentive based remuneration as a way of furthering the 
development of the Group, including attracting new employees, through acquisition or otherwise. This power is in addition to any existing 
power granted to the directors. 
BY ORDER OF THE BOARD  Registered office:     
Colin C Grant The Cherrybank Centre
Company Secretary Cherrybank Gardens
Dated: 10 August 2009 Perth PH2 0PF
 
54
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Notes:
1. A member entitled to attend and vote at the Annual General Meeting (the Meeting) is entitled to appoint one or more proxies to exercise 
all or any of his rights to attend, vote and speak instead of him. A proxy need not be a member of the Company. You may appoint more 
than one proxy provided each proxy is appointed to exercise rights attached to different shares. You may not appoint more than one proxy 
to exercise the rights attached to any one share.
2. To be valid, a form of proxy (other than an electronic communication appointing a proxy) together with the power of attorney or other 
authority (if any) under which it is signed (or a copy of such authority certified notarially) must be lodged at the office of the Company’s 
registrars, Capita Registrars, Proxy Department, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU by 12.30 pm on  
7 September 2009, or not less than 48 hours before the time appointed for holding any adjourned meeting. 
3. Pursuant to Regulation 41 of the Uncertificated Securities Regulation 2001, the Company has specified that only those shareholders registered 
in the register of members of the Company as at close of business on 7 September 2009 or, in the event that this meeting is adjourned, in the 
register of members 48 hours before the time of any adjourned meeting, will be entitled to vote, or to appoint one or more proxies to vote on 
their behalf, at this meeting in respect of the number of shares registered in their names at that time. Changes to entries on the register of 
members after close of business on 7 September 2009 or, in the event that this meeting is adjourned, in the register of members 48 hours 
before the time of any adjourned meeting, shall be disregarded in determining the rights of any person to attend or vote at the meeting. 
4. Completion and return of a form of proxy will not prevent a member from attending the meeting and voting in person should he wish to do so. 
5. CREST members who wish to appoint a proxy or proxies by utilising the CREST electronic proxy appointment service may do so for the 
Meeting and any adjournment(s) thereof by utilising the procedures described in the CREST Manual. CREST personal members or other 
CREST sponsored members, and those CREST members who have appointed a voting service provider(s), should refer to their CREST 
sponsor or voting service provider(s), who will be able to take the appropriate action on their behalf.
6. In order for a proxy appointment made by means of CREST to be valid, the appropriate CREST message (a CREST Proxy Instruction)  
must be properly authenticated in accordance with Euroclear UK & Ireland Limited’s (EUI) specifications and must contain the information 
required for such instructions, as described in the CREST Manual. The message regardless of whether it relates to the appointment  
of a proxy or to an amendment to the instruction given to a previously appointed proxy must, in order to be valid, be transmitted so as  
to be received by the issuer’s agent (ID RO33) by 12.30pm on 7 September 2009. For this purpose, the time of receipt will be taken to be 
the time (as determined by the timestamp applied to the message by the CREST Applications Host) from which the issuer’s agent is able  
to retrieve the message by enquiry to CREST in the manner prescribed by CREST.
7. CREST members and, where applicable, their CREST sponsors or voting service providers should note that EUI does not make available 
special procedures in CREST for any particular messages. Normal system timings and limitations will therefore apply in relation to the input 
of CREST Proxy Instructions. It is therefore the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST 
personal member or sponsored member or has appointed a voting service provider(s), to procure that his CREST sponsor or voting service 
provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of the CREST system by any 
particular time. In this connection, CREST members and, where applicable, their CREST sponsors or voting service providers are referred,  
in particular, to those sections of the CREST Manual concerning practical limitations of the CREST system and timings.
8. The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5) (a) of the Uncertificated 
Securities Regulations 2001.
9. In order to facilitate voting by corporate representatives at the meeting, arrangements will be put in place at the meeting so that (i) if a 
corporate shareholder has appointed the chairman of the meeting as its corporate representative to vote on a poll in accordance with  
the directions of all the other corporate representatives for that shareholder at the meeting, then on a poll those corporate representatives 
will give voting directions to the chairman and the chairman will vote (or withhold a vote) as corporate representative in accordance with 
those directions; and (ii) if more than one corporate representative for the same corporate shareholder attends the meeting but the 
corporate shareholder has not appointed the chairman of the meeting as its corporate representative, a designated corporate representative 
will be nominated, from those corporate representatives who attend, who will vote on a poll and the other corporate representatives will 
give voting directions to that designated corporate representative. Corporate shareholders are referred to the guidance issued by the 
Institute of Chartered Secretaries and Administrators on proxies and corporate representatives (www.icsa.org.uk) for further details of this 
procedure. The guidance includes a sample form of appointment letter if the chairman is being appointed as described in (i) above.
10. Copies of the existing Articles of Association of the Company will be available for inspection at the Company’s registered office from  
10 August 2009 to (and including) the date of the Meeting during normal business hours on any day (Saturdays, Sundays and public 
holidays excepted) and will also be available at the Registered Office for at least 15 minutes before the Meeting until its conclusion.
55
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Notes
56
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Company Information
Directors 
Garry S Watson OBE CA, Chairman
(n) (r)
Geoffrey C B Thomson, Chief Executive Officer
Carolyn Smith BA Hons ACIS, Chief Investment Officer 
Colin C Grant BCom CA, Chief Financial Officer (appointed 15 October 2008)
Edward B Cunningham CBE, Non-executive Director
(a) (n) (r)
J Kenneth Brown BA CA, Non-executive Director
(a) (r) 
Jeremy H Delmar-Morgan MA MSI, Non-executive Director (appointed 3 June 2008)
(a)
A L A Shonaig Macpherson CBE FRSE Non-executive Director (resigned 10 September 2008)
(r)
Donald I Turner CA Non-executive Director (resigned 10 September 2008)
(a)
(a) Member of Audit and Risk Management Committee
(n) Member of Nominations Committee
(r) Member of Remuneration Committee
Secretary 
Colin C Grant BCom CA
Company Registration Number 
SC247376
Registered Office 
The Cherrybank Centre
Cherrybank Gardens
Perth
PH2 0PF
Telephone +44 (0) 1738 587555 
Website 
www.braveheartinvestmentgroup.co.uk
Advisers 
Registrar   Principal Bankers 
Capita Registrars  Bank of Scotland
Northern House  110 St Vincent Street 
Woodsome Park  Glasgow
Fenay Bridge  G2 5ER
Huddersfield
HD8 0LA
 
Solicitors   Solicitors
Semple Fraser LLP  Maclay Murray & Spens LLP
80 George Street  Quartermile One 
Edinburgh  15 Lauriston Place
EH2 3BU   Edinburgh 
    EH3 6EP
Auditors   Nominated Adviser and Broker     
Grant Thornton UK LLP  Seymour Pierce Limited
1-4 Atholl Crescent  20 Old Bailey
Edinburgh   London 
EH3 8LQ   EC4M 7EN  
57
Braveheart was founded in 1997 by a small group of 
investors in order to encourage and syndicate investments  
in privately held companies that offered opportunities  
for significant growth. 
Twelve years on, Braveheart is a public company with: 
• 	 	 A 	 d e m o n s t r a b l e 	 t r a c k 	 r e c o r d 	 i n 	 e a r l y 	 s t a g e 	 t e c h n o l o g y	
investing
• 	 M a r k e t 	 l e a d i n g 	 i n v e s t m e n t 	 r e t u r n s	
• 	 	 E s t a b l i s h e d 	 d e a l 	 fl o w 	 a n d 	 e x c l u s i v e 	 a c c e s s 	 t o 	 i n t e l l e c t u a l	
property
•	 	 A 	 c l i e n t 	 b a s e 	 o f 	 h i g h 	 n e t 	 w o rt h 	 i n v e s t o r s
• 	 	 S e rv i c e 	 o f f e r i n g s 	 o f 	 b e s p o k e 	 E I S 	 p o r t f o l i o s , 	 f u n d	
management, investment facilitation and management 
services
•	 	 A 	 d i r e ct l y 	 h e l d 	 p o rt f o l i o 	 o f 	 i n v e s t m e n t s 	 i n 	 2 8 	 c o m p a n i e s	
•	 A 	 s t r o n g 	 b a l a n c e 	 s h e e t 	 w i t h 	 c a s h 	 b a l a n c e s 	 o f 	 £ 3 . 2 2 m
•	 O ffi c e s 	 i n 	 P e rt h , 	 L o n d o n 	 a n d 	 Y o r ks h i r e
About Braveheart
Our business is based on the 
following principles: 
Growth
Support
Service 
Partnership 
BRAVEHEART INVESTMENT GROUP ANNUAL REPORT AND ACCOUNTS 2009 Annual Report and Accounts 2009
Growth
Support
Service
Partnership
www.braveheartinvestmentgroup.co.uk
The Cherrybank Centre
Cherrybank Gardens
Perth
PH2 0PF
United Kingdom
mail@braveheart-ventures.co.uk
T: +44 (0)1738 587555
F: +44 (0)1738 587666
Braveheart Investment Group Annual Report and Accounts 2009