ANNUAL REPORT & ACCOUNTS 2002
AT
YOUR
SERVICE   OPERATIONAL HIGHLIGHTS
2 DE VERE GROUP PLC OPERATIONAL HIGHLIGHTS
Contents
Operational Highlights 2
Financial Highlights 3
Chairman’s Statement 4
Chief Executive’s Business Review 6
Financial Review 14
Board of Directors 16
Report of the Directors 17
Statement on Corporate Governance 19
Report on Directors’ Remuneration 21
Directors’ Responsibility for the Accounts 24
Independent Auditor’s Report 25
Accounting Policies 26
Consolidated Profit & Loss Account 28
Balance Sheets 29
Consolidated Cash Flow Statement 30
Other Statements 31
Notes to the Accounts 32
Shareholder Information 55
Advisers to De Vere Group Plc 56
Property Locations 57
• Robust performance across the Group reflecting strength of
brands and a focus on service delivery; 
• Increase in like-for-like RevPAR
*
at De Vere Hotels of 1.4% and at
Village Hotels & Leisure Clubs of 0.7%, against a decline of 2.9%
in the UK provincial market
†
, reflecting the successful targeting
of the leisure market and a resilient stance on pricing; 
• Heightened brand awareness through the successful high profile
staging of The Ryder Cup in September 2002;
• New adaptable design model and more planned sites/openings
for Village Hotels & Leisure Clubs;
• Village Newcastle opened in June 2002 and is trading in line 
with expectations;
• Greens moved into profit, as expected.
A focused group
that brings you…
* Accommodation revenue per available room night.
†
Source: Tri Hospitality September 2002. FINANCIAL HIGHLIGHTS ANNUAL REPORT & ACCOUNTS 2002 3
FINANCIAL HIGHLIGHTS
2002 2001
Continuing Operations £m £m % Change
Turnover 293.9 273.8 +7.3
EBITDA* – before exceptional items 75.0 70.0 +7.2
Operating Profit – before exceptional items 51.9 49.8 +4.2
Group Profit before tax 38.5 **(18.1) N/A
Group Profit before tax – before exceptional items
†
37.7 33.6 +12.2
Final dividend (pence)
††
7.35 6.90 +6.5
Basic EPS – before exceptional items (pence) 23.55 ***21.22 +11.0
* EBITDA: Earnings before interest, tax, depreciation and amortisation.
** This figure includes exceptional charges of £49.1m on the disposal of Tavern, £1.3m Head Office redundancies and £1.2m of Ryder Cup costs.
† 2002 exceptional items relate to Ryder Cup compensation for committed income not received in 2001 of £0.3m and a surplus on disposal of
properties of £0.5m.
†† Proposed final dividend. The total dividend for the year is 11.30p which includes an interim dividend of 3.95p paid on 5 July 2002 
(2001: Total dividend – 10.60p).
*** EPS restated to reflect the implementation of FRS 19 – Deferred Tax.
Turnover EBITDA
Continuing Operations 2002 2001 2002 2001
excluding exceptional items £m £m % Change £m £m % Change
De Vere 177.8 174.7 +1.8 48.4 49.4 –2.0
Village 64.2 56.7 +13.2 19.2 17.6 +9.2
Greens 24.0 13.5 +78.3 4.8 0.5 +867.0
G&J Greenall 27.9 28.9 –3.7 2.6 2.5 +4.8
Total 293.9 273.8 +7.3 75.0 70.0 +7.2 Hosting The Ryder Cup was an endorsement of the quality
of our facilities at The De Vere Belfry, our hospitality
management expertise and our exceptional people.
CHAIRMAN’S STATEMENT
4 DE VERE GROUP PLC CHAIRMAN’S STATEMENT
championship success… CHAIRMAN’S STATEMENT ANNUAL REPORT & ACCOUNTS 2002 5
Far left: The 34th Ryder Cup Matches
reached a worldwide television audience
of one billion people, providing excellent
exposure for the De Vere brand.
Middle: The De Vere Belfry, host 
venue of The Ryder Cup for an
unprecedented 4th time, is one of 21
De Vere Hotels across the UK.
Right: The Lord Daresbury
Non-executive Chairman
Turnover:
2001/2002
I am pleased to report that De Vere Group
once again made good progress during
the year in a very difficult trading market.
Central to this progress was continued
sales growth despite these testing
conditions, especially in the hotel market,
and Greens moving into profit as
expected. Both our hotel brands continue
to outperform the market with De Vere
Hotels once again increasing its RevPAR
premium. 
One of the key highlights of the year was
the successful staging of the 34th Ryder
Cup Matches at The De Vere Belfry in
September. This event showcased the 
De Vere brand to a global audience and
can only have increased brand awareness
as a result. The expansion of the Group
continues on schedule with the opening
during the year of the 14th Village Hotel
and Leisure Club and four new Greens
Health & Fitness clubs. I am also delighted
to report that the refurbishment of the 
De Vere Cavendish St. James’s has been
completed. 
Group turnover for the year ended 
29 September 2002 was £293.9 million,
an increase of 7.3% (2001: £273.8
million), whilst EBITDA before exceptional
items rose by 7.2% from £70.0 million to
£75.0 million. Operating profit from
continuing operations on a pre-
exceptional basis was up 4.2% to 
£51.9 million from £49.8 million. Profit
before tax was £38.5 million compared
with a loss last year of £18.1 million.
Earnings per share, excluding exceptional
items, were 23.55 pence (2001: 21.22
pence restated).
Dividend
The Board is recommending a final
dividend of 7.35 pence per ordinary
share, which, when taken together with
the interim dividend of 3.95 pence,
represents a total dividend of 11.30 pence,
an increase of 6.6%. This is payable on 
21 February 2003 to shareholders on the
register on 24 January 2003. 
Board
David Reid retired from the Board in 
April 2002 and, on behalf of the Group, 
I would like to thank him for his long 
and valued contribution. In the following
month we were delighted to welcome
Debbie Howard as a Non-executive
Director, who brings an added dimension
to the Board through her experience as
Group Human Resources Director of 
RAC plc.
People
On behalf of the Board, I would like to
thank all the Group’s employees for their
commitment, support and enthusiasm in
playing their part to help the Group
achieve its goals of delivering excellent
service to our customers and, in so doing,
creating value for our shareholders.
The Lord Daresbury
Non-executive Chairman
£m
De Vere Hotels 177.8
Village Hotels & Leisure Clubs 64.2
Greens Health & Fitness 24.0
G&J Greenall 27.9
Capital Investment:
2001/2002
£m
De Vere Hotels 23.4
Village Hotels & Leisure Clubs 16.6
Greens Health & Fitness 16.2
G&J Greenall 0.3 I am delighted to report that all the
Group’s brands made steady progress
during the year despite the slowing UK
economy. Both Village Hotels & Leisure
Clubs and Greens Health & Fitness
continued their organic growth and 
De Vere Hotels continued to trade 
robustly whilst addressing specific 
projects, including hosting The Ryder Cup
at The De Vere Belfry and the
refurbishment of the De Vere Cavendish
St. James’s. RevPAR for the UK hotel
market as a whole declined by 2.9% in
the provinces and by more than 14% in
London, whilst the health & fitness
market continued to grow. 
The resilience of our two hotel brands
under these market conditions
demonstrates the breadth of their
respective consumer offerings. Both
brands have differing mixes to their
income streams and customers compared
to their peer group and this enhanced
stability, in turn, provides the Group with
a strong competitive edge in difficult
market conditions. During the year, we
maintained our focus on training and also
reorganised our sales force and other
support teams to bring greater
operational efficiencies. This continuing
investment in our staff allows us to deliver
the fundamental skills of any hospitality
business – first class service.
Our commitment to improve all aspects of
our brand delivery resulted in De Vere
Hotels receiving a major award from the
British Development Research Consultants
(BDRC) in December 2001. This recognises
the increasing levels of both awareness
and brand loyalty that exist amongst our
strong and growing customer base.
Hosting The Ryder Cup was a significant
endorsement of the Group’s capabilities
in hospitality management and reinforces
De Vere’s position as a leading hotel and
conference group of outstanding quality.
The tournament, which took place in the
final week of the financial year, provided a
global platform from which to accelerate
the Group’s growing brand awareness,
reaching a worldwide television audience
of one billion including 26% of the UK
population. The Ryder Cup is now the
third largest televised sporting event in
the world. It attracted more than 180,000
visitors to The De Vere Belfry, who
witnessed first-hand the Group’s ability to
manage a world class event as well as an
excellent sporting contest. A high
proportion of these visitors were
influential business decision-makers and,
quite possibly, future conference clients.
CHIEF EXECUTIVE’S BUSINESS REVIEW
6 DE VERE GROUP PLC CHIEF EXECUTIVE’S BUSINESS REVIEW
With in excess of 10,000 hotel and leisure guests checking into 
De Vere and Village hotels every day, the importance of offering a
warm, friendly and professional welcome cannot be underestimated.
a warm welcome…
£m
2002 2001 2000 1999 1998
0
50
100
150
200
250
300
350
Total Sales – 
Continuing Operations:
De Vere Hotels
Village Hotels & Leisure Clubs
G&J Greenall
Greens Health & Fitness
000’s
2002 2001 2000 1999 1998
0
20
40
60
80
100
120
140
160
Total Leisure Membership:
De Vere Hotels
Village Hotels & Leisure Clubs
Greens Health & Fitness CHIEF EXECUTIVE’S BUSINESS REVIEW ANNUAL REPORT & ACCOUNTS 2002 7
Far left: De Vere Mottram Hall, a
Georgian house set in undulating
Cheshire parkland, mixes grandeur with
a friendly and welcoming atmosphere.
Left: Whether shopping or taking in 
one of London’s many attractions, the
De Vere Cavendish St. James’s provides 
a central and prestigious base.
Right: Paul Dermody
Chief Executive CHIEF EXECUTIVE’S BUSINESS REVIEW
Continued
8 DE VERE GROUP PLC CHIEF EXECUTIVE’S BUSINESS REVIEW
Be it a conference for 2,000, a board meeting for ten or a
breakfast for two, De Vere hotel customers can always rely
on the highest standards, down to the smallest detail.
first class standards… CHIEF EXECUTIVE’S BUSINESS REVIEW ANNUAL REPORT & ACCOUNTS 2002 9
De Vere Hotels
At the year end, De Vere had 21 hotels
with 3,298 rooms (2001: 3,316) and
23,500 health & fitness members 
(2001: 22,400), an increase of 4.9%. 
During the year there were few signs of 
a sustainable recovery in demand in the
business and overseas visitor markets.
However, we are very pleased to report
that De Vere’s sales still grew by 1.8% to
£177.8 million (2001: £174.7 million). 
On a like-for-like basis total turnover rose
by 2.1%, whilst RevPAR grew by 1.4% to
£59.58. This compares to a decline in
RevPAR for the provincial hotel market of
2.9%. Like-for-like occupancy was
marginally down by 0.9 points to 74.1%
reflecting weakened demand.
Nevertheless, the average achieved rate
grew by 2.6% to £80.36 as a
consequence of our resilient stance on
pricing across all market segments.
EBITDA, excluding exceptional items,
reduced by 2.0% to £48.4 million (2001:
£49.4 million) and operating profit on the
same basis declined by 3.1% to £35.3
million (2001: £36.4 million). Increases in
business rates due to the rating revaluation
and climate change levy affected the first
half, whilst increased insurance premiums
impacted the whole year.
Although demand in the mid-week
business market was down, for both the
conference and corporate market, there
was a successful switch in focus to the
stronger short-break market, especially
during the first half. This is a testimony to
both our flexible approach and the
breadth of our offering. We continued
with our brand-building campaign over
the summer period and maintained a
robust stance on discounting, which was a
prevalent feature of this market segment. 
The refurbishment of the De Vere
Cavendish St. James’s has been completed
on schedule and the hotel is now
operating with 231 (2001: 250)
bedrooms. The hotel has been
repositioned as a leading 4-star deluxe
hotel in central London and will further
leverage the Group’s extensive client base.
During the refurbishment, the hotel
operated with a reduced number of
bedrooms and experienced similar trading
to the London market in general. The
benefits of the repositioning are already
being experienced both with positive
feedback and, more importantly, in a
steady rise in achieved room rates. 
Building on the success of The Ryder Cup,
the Group has been seeking opportunities
of raising the brand profile on a global
scale and has signed a sales and
marketing alliance with Destination Hotels
& Resorts in the USA. This agreement will
enable us to leverage the brand in the
North American market.
The ongoing and controlled refurbishment
programme of our bedstock and facilities
at a number of our hotels, to maintain the
quality of our estate in line with the 
De Vere brand positioning, will continue.
The steady growth of De Vere Resort
Ownership has been maintained. We have
met our target of building a further 11
lodges during the year, bringing the total
number to 126 at three of our resort
properties. An additional development
phase of six units has begun at De Vere
Slaley Hall for completion in August 2003.  
Right: De Vere Oulton Hall, a 5-star
hotel bringing a touch of luxury
together with excellent conference
and leisure facilities.
Far right Conference venues at our
35 De Vere and Village hotels offer
delegates the opportunity to use
function rooms of various sizes,
using versatile and well-equipped
presentation facilities.
Upper Provincial
Competitors
£34,630
De Vere
£55,421
0
10
20
30
40
50
60
000’s
Sales Per Available Room
Competitor Benchmarking*
*Source: Tri Hospitality – September 2002.
†
Like-for-like figures exclude acquisitions.
Rooms
Food & Beverage
Other
De Vere
£59.58
£80.36
74.1%
x
=
Upper Provincial
Competitors
£47.90
£66.87
71.6%
=
x
Accommodation Statistics
†
Competitor Benchmarking*
Occupancy %
Average Room Rate
Yield Village Hotels & Leisure Clubs
By the year end the number of Village
Hotels & Leisure Clubs had reached 14,
with 1,243 rooms (2001: 1,089). Health &
fitness membership had grown by 14.9%
to 56,800 members (2001: 49,500).
Turnover for Village rose 13.2% to 
£64.2 million (2001: £56.7 million). On a
like-for-like basis, sales grew by 2.1% and
RevPAR by 0.7% to £40.59, against an
industry decline of 2.9%. On a similar
basis occupancy was down by 1.8
percentage points to 79.2%. Achieved
rates rose by 3.1% to £51.25, the latter
once again reflecting our resilient pricing
stance. EBITDA grew by 9.2% to £19.2
million (2001: £17.6 million) and
operating profit increased by 6.0% to
£13.4 million (2001: £12.6 million).
Like De Vere Hotels, there was a similar
and successful switch in focus, from the
weak corporate market to the more
resilient short-break market. The
performance of Village relative to the
market demonstrates both the strength
and uniqueness of the brand. Village Bury,
which opened in August 2001, has now
delivered a full year’s contribution and is
meeting its targeted returns. Our 14th
Village hotel opened in Newcastle in June
2002 and it too is meeting trading
expectations. 
This hotel also includes some new design
modifications which will be used on
future new builds. A more flexible design
brief has been created which will be
adapted to meet differing local demand.
This, together with a smaller site
requirement, increases the potential of
our brand and expands the range of
possible new sites. 
We are now poised to move into the
South of England, which will be an
important step in the brand’s
development. Contracts have been
exchanged at Maidstone and
Bournemouth. Two further sites in the
Midlands, Perry Barr and North
Birmingham, are subject to planning
consent. There will be a phased opening
programme of these four sites over the
next few years, with the first due to open
in Summer 2004. We are continuing to
seek further sites that will meet our strict
development criteria.
CHIEF EXECUTIVE’S BUSINESS REVIEW 
Continued
10 DE VERE GROUP PLC CHIEF EXECUTIVE’S BUSINESS REVIEW
Our ongoing focus on training and performance improvement
throughout the Group helps to keep our people energised and
motivated to deliver excellent service to our customers.
experienced teams…
£23,089
Provincial Mid
Market Competitors
Village
£57,450
0
10
20
30
40
50
60
000’s
Sales Per Available Room
Competitor Benchmarking*
*Source: Tri Hospitality – September 2002.
†
Like-for-like figures exclude new builds in
both 2001 and 2002.
Rooms
Food & Beverage
Other
Village
£40.59
£51.25
79.2%
x
=
Provincial Mid
Market Competitors
£30.19
£46.45
65.0%
x
=
Accommodation Statistics
†
Competitor Benchmarking*
Occupancy %
Average Room Rate
Yield CHIEF EXECUTIVE’S BUSINESS REVIEW ANNUAL REPORT & ACCOUNTS 2002 11
Far Left: Facilities across De Vere and 
Village cater for all conference and
meeting requirements, large or small.
Middle: Our latest Village Hotel & 
Leisure Club at Newcastle opened in 
June this year.
Left: Most of our hotels have extensive
leisure facilities; guests benefit from full
health & fitness club membership during
their stay. CHIEF EXECUTIVE’S BUSINESS REVIEW
Continued
12 DE VERE GROUP PLC CHIEF EXECUTIVE’S BUSINESS REVIEW
Preparation behind the scenes in our De Vere and Village hotels
is important to our success. Around the clock, 365 days a year,
we provide quality food and beverage to all our guests.
serving up… 2002 2001 2000 1999 1998
LPA million
9.5
10.0
10.5
11.0
11.5
12.0
12.5
Sales in Litres Pure Alcohol
CHIEF EXECUTIVE’S BUSINESS REVIEW ANNUAL REPORT & ACCOUNTS 2002 13
Greens Health & Fitness 
It has been a year of substantial progress
for Greens, our health & fitness brand,
which moved into profit as expected.
During the year, a further four clubs were
opened at Chingford, Gosforth, Shipley
and Leicester and total membership stood
at 59,300 members as at 29 September
2002 (2001: 37,000). Our target of 15
clubs will be achieved by the end of
December with the scheduled opening at
Giffnock, South Glasgow.
Turnover increased by 78.3% to £24.0
million (2001: £13.5 million) with like-for-
like sales up by 13.0%. EBITDA increased
to £4.8 million (2001: £0.5 million) and
an operating profit of £1.3 million was
achieved in the year (2001: operating loss
£1.0 million). 
In a market that is still growing, there was
a successful drive for new members over
the summer months. Average club
membership is over 4,000. After three
years of expansion, the emphasis for the
forthcoming year is on optimising unit
profitability, cash flow and strengthening
Greens’ position as a player at the
premium end of the market.
G&J Greenall
Due to a decline of marginal own label
products in favour of higher contribution
branded products, total sales decreased
by 3.7% to £27.9 million (2001: £28.9
million). Operating profit for the full year
increased, however, by 6.5% to 
£1.9 million (2001: £1.8 million). 
Current Trading & Outlook
During the first eight weeks of the current
financial year, total Group turnover has
increased by 7.4% on 2001. RevPAR on a
like-for-like basis for De Vere Hotels has
increased by 3.7%, with sales up 1.6%.
On a similar basis, RevPAR at Village
Hotels & Leisure Clubs has increased by
2.3%, with sales up by 4.7%. Greens total
sales have increased by 47.1%.
We are pleased with recent trading,
although we remain cautious about
extrapolating a trend because of the
nature of the comparative figures. Looking
ahead, the outlook is still uncertain with
the extent and timing of recovery
remaining difficult to predict. However, we
have confidence that our brands will
continue to outperform the market.
P B Dermody
Chief Executive
Far left: The completed refurbishment
programme at the De Vere Cavendish St.
James’s offers guests a contemporary base
from which to explore the sights of London.
Left: De Vere University Arms in Cambridge
illustrates the individual character of the
hotels within the De Vere portfolio.
Right A selection of De Vere Hotels offer
the experience of fine dining with a number
of our restaurants achieving AA rosettes. 
Greens Health & Fitness
clubs opened:
1999
July Cambridge
2000
May Birmingham
May Wakefield
August Croydon
October Stoke
2001
January Liverpool
February Sheffield
March Glasgow
April Norwich
July Edinburgh
December Chingford
2002
March Gosforth
April Shipley
September Leicester FINANCIAL REVIEW
14 DE VERE GROUP PLC FINANCIAL REVIEW
In what has been a tough year for the UK
hotel market the Group has achieved
creditable growth, increasing turnover by
7.3% to £293.9 million (2001: £273.8
million) and operating profit on
continuing activities excluding exceptional
items by 4.2% to £51.9 million (2001:
£49.8 million).
During the year, De Vere Hotels have
mitigated a downturn in the upper
provincial conference and corporate
market with increased short leisure break
business. The Village and Greens brands
have been expanded through the opening
of Village Newcastle and four further
Greens clubs in the year.
The increasing maturity of the existing
Greens units is reflected in an operating
profit of £1.3 million being achieved in the
year (2001: operating loss £1.0 million).
Interest
Net interest charges for the year increased
from £12.7 million to £14.1 million,
primarily due to an increase in Group
borrowings to fund the expansion of
Village and Greens; net interest was
covered 3.7 times by operating profit
before exceptional items (2001: 3.6 times).
Taxation
FRS 19 – Deferred Tax has been
implemented in the accounts for the first
time this year. As a consequence the tax
charge in the profit and loss account
represents 30.2% of profit before
taxation. Prior year figures have been
restated resulting in an increase to the
2001 tax charge of £4.9 million; the net
effect on the prior year adjustment was to
reduce opening net assets by £1.3 million;
see Note 18 for details.
The actual Corporation tax payable is
substantially lower than the profit and
loss charge as a result of the availability of
brought forward tax losses and
accelerated capital allowances on our
capital expenditure programme.
Cash Flow
The principal cash movements deriving
from continuing operations during the
period were an operating cash flow of
£69.2 million before exceptional outflows
of £11.0 million, primarily a special
contribution to the pension scheme, and
net capital expenditure of £50.4 million
resulting from our continuing investment
programme.
Gearing
Gearing at the year end was 40.5%
(2001: 38.7%). Borrowings as at 
29 September 2002 amounted to 
£228.1 million (2001: £211.3 million), 
an increase of £16.8 million.
Treasury 
Group treasury operations are managed
centrally as a service function and operate
within a formal treasury policy approved
by the Treasury Committee. This
committee, which has formal terms of
reference from the Board, is responsible
for the development and review of
treasury policy, procedures and reporting.
The primary objectives of treasury policy
are to ensure that adequate and cost-
effective funding arrangements are
maintained to finance current and
planned future activities and that
exposure to financial risk is minimised.
Funding Arrangements
The 7% Convertible subordinated bonds
mature on 24 September 2003 and,
consequently, have been classified within
current liabilities in the year end balance
sheet.
The Group intends to repay the
Convertible bonds using its existing 
£175 million Revolving Credit Facility and
a new US $100 million loan note facility,
the terms of which have been agreed
subject to final documentation.
At the year end, committed funding of
£290.2 million (2001: £291.0 million) was
in place from both bank and debt market
sources. Of these facilities £120.0 million
was undrawn as at 29 September 2002
(2001: £139.0 million).
Further details of the Group’s borrowings
at the financial year end are disclosed in
Note 15 to the Accounts. 
good results in difficult
market conditions. FINANCIAL REVIEW ANNUAL REPORT & ACCOUNTS 2002 15
Financial Risk Management
In order to manage the risk of exposure to
fluctuating interest rates and to assist
long-term planning, the Group continues
to maintain the majority of its debt at
fixed rates of interest. To this end, the
Group entered into a £20 million interest
rate swap contract, in March 2002, to fix
rates for five years at 5.31%. An analysis
of fixed rate borrowings is provided in
Note 15 to the accounts. At the year end
61% of borrowings were at fixed rates of
interest.
Changes in floating interest rates will
have a marginal impact on interest
payable by the Group due to the
significant proportion of borrowings
being at fixed interest rates. It is
estimated that a one percentage point
change in floating rates would affect
interest payable during the next financial
year by approximately £1.3 million. 
The proposed $100 million US Private
Placement debt has been hedged to
provide Sterling proceeds of £63.3 million.
The interest cash flows throughout the
term of the debt have also been hedged
as disclosed in Note 15. Aside from these
borrowings, transactions conducted in
foreign currencies are not significant in the
context of the Group’s overall business.
Shareholders’ Returns
Basic earnings per share, excluding
exceptional items, increased by 11.0% to
23.55 pence.
The Board is recommending a final
dividend of 7.35 pence per Ordinary share.
Ordinary dividends for the year of 11.30
pence per share are covered 2.1 times by
earnings before exceptional items (2001:
10.6 pence covered 2.0 times).
Pensions
The financial statements comply with the
transitional disclosure requirements of 
FRS 17 – Retirement Benefits. Note 17 to
the Accounts on pages 47 to 50 disclose
the funding position of the Greenalls
Group Pension & Life Assurance scheme.
This defined benefit scheme is closed to
new members and, due to the mature
profile of membership, 67% of the
investments are now held in fixed interest
gilts and long-dated corporate bonds.
At the year end the scheme’s expected
liabilities have been adversely affected by
a reduction in the long-term discount
rate, applied to estimated future pension
liabilities, from 6.2% to 5.6%.
The next actuarial valuation of the scheme
will take place in April 2003 and the
ongoing funding of the scheme will be
reviewed in conjunction with these
valuation results.
Future Developments
The Group has produced good results for
the year and is well placed to both
expand its Village network and take
advantage of an upturn in the London
hotel market. 
R G Stubbs
Group Finance Director
Roger Stubbs 
Group Finance Director 16 DE VERE GROUP PLC BOARD OF DIRECTORS
BOARD OF DIRECTORS
1. Paul Dermody, ACMA, (57)
Chief Executive 
Appointed a Director in June 1997.
He joined the Company in 1963, and
was Finance Director of De Vere
Hotels from 1984 to 1989 when he
was appointed Deputy Chairman of
De Vere Hotels. He became Chief
Executive of Premier House and
Village Leisure in 1995, was
appointed Managing Director of
Greenalls Hotels & Leisure in June
1997 and became Chief Executive in
February 2000. He is a fellow of the
Hotel & Catering International
Management Association.
2. Lord Daresbury, DL, MA, (49)
Non-executive Chairman 
Appointed a Director in 1984. He first
joined the Company in 1977,
becoming a Director in 1984 and
Chief Executive in February 1997.
Following the sale of Pubs &
Restaurants he was appointed Non-
executive Chairman. He is Chairman
of Aintree Racecourse Company
Limited, Executive Chairman of
Highland Gold Mining Limited and
was formerly a Non-executive Director
of First Leisure Plc.
3. Roger Stubbs, FCA, (51)
Group Finance Director 
Appointed Group Finance Director in
December 1999. He joined the
Company in 1979 as Financial
Controller of the Off Licence Division
subsequently becoming its Finance
Director. In 1991 he became Finance
Director of Premier House and in
1997 was appointed Finance Director
of the Hotels & Leisure Division. He is
a fellow of the Institute of Chartered
Accountants and a member of the
British Association of Hotel
Accountants.
4. Steven Morgan, OBE, (49) 
Non-executive Director
Appointed as a Non-executive
Director in March 2000. He is the
former Chairman and founder of
Redrow Group Plc and St. David’s
Hotels prior to its acquisition by 
De Vere Group Plc. He is also a
Director of several privately owned
businesses.
5. Alan Jackson, (59)
a,r,n, 
Non-executive Director
Appointed as an independent Non-
executive Director in 1993 and senior
Non-executive Director in 2002. He is
Chairman of the Nomination
Committee and a member of the
Audit and Remuneration Committees.
He is Executive Chairman of City
Centre Restaurants Plc and Chairman
of Living Ventures Plc. He was
formerly the Chairman and Chief
Executive of Inn Business Group plc.
6. Nigel Walmsley, (60)
a,r,n, 
Non-executive Director
Appointed as an independent Non-
executive Director in May 2001. He is
Chairman of the Audit Committee
and a member of the Remuneration
and Nomination Committees. He is a
Director of The Ambassador Theatre
Group Ltd and a Vice President of the
Advertising Association. He was
formerly Deputy Chief Executive of
Carlton Communications Plc and prior
to that was Managing Director of
Capital Radio plc and previously a
board member with the Post Office.
7. Deborah Howard, (39)
a,r,n, 
Non-executive Director
Appointed as an independent Non-
executive Director in May 2002. She
chairs the Remuneration Committee
and is a member of the Audit and
Nomination Committees. She is
Human Resources Director of RAC plc
and sits on the Office of Government
Commerce Board.
Board Committees:
(a) Audit Committee  
(r) Remuneration Committee  
(n) Nomination Committee
7
6 5
4
1
2
3 REPORT OF THE DIRECTORS
REPORT OF THE DIRECTORS ANNUAL REPORT & ACCOUNTS 2002 17
The Directors have pleasure in submitting
their Report and the Accounts for the 52
weeks ended 29 September 2002.
Trading Results
An analysis of the operating profit by class
of business is shown in Note 1 to the
Accounts on page 32.
Dividends
The Board is recommending a final
dividend of 7.35 pence per Ordinary share
which, together with the interim dividend
of 3.95 pence per Ordinary share, makes a
total for the year ended 29 September 2002
of 11.30 pence, compared with 10.6 pence
per Ordinary share for the year ended 
30 September 2001.
Activities of the Group
The main activities of the Group are stated
in Note 11 on pages 41 and 42.
Review of the Year and 
Future Prospects
The review of the Group’s trading
operations during the year and an
indication of likely future developments are
set out on pages 2 to 15.
Share Capital
Details of changes in share capital during
the year are given in Note 19 on pages 51
and 52. Since the year end 303 Ordinary
shares of 22 
2
/9 pence each have been
issued under the Sharesave Scheme.
The authority granted by shareholders for
the Company to purchase its own shares
remains in force until the next AGM.
Substantial Interests as at 
4 December 2002
The Company has been notified of the
following interests pursuant to section 198
of the Companies Act 1985:
%
Bridgemere Investments Ltd 12.4
Hermes Administration 8.6
Services Limited
Guinness Peat Group 8.2
Taube Hodson Stonex 6.5
UBS Global Management 4.1
Legal & General Investment 
Management 3.5
Aberforth Partners 3.3
Société Générale Asset 
Management 3.2
Mr S P Morgan, a Non-executive Director of
the Company, is the controlling shareholder
of Bridgemere Investments Limited.
In addition, to the substantial interests
referred to above, Lord Daresbury, Non-
executive Chairman, has beneficial interests
in the Ordinary shares of the Company,
together with other members of his family,
amounting to 5.6%. 
Directors
The names and brief biographical details 
of the Directors in office are set out on
page 16. Mr D E Reid resigned from the
Board on 30 April 2002. Mr S P Morgan
and Mr A M Jackson retire by rotation and,
being eligible, offer themselves for re-
election. Ms D Howard, who was
appointed Non-executive Director on 
2 May 2002, offers herself for election.
Directors’ Share Interests
Share Capital
Directors’ beneficial interests in Ordinary
shares as at 29 September 2002 and 
30 September 2001 or date of
appointment if later:
Beneficial
2002 2001
Lord Daresbury 5,911,492 5,911,492
P B Dermody 25,320 25,151
R G Stubbs 36,479 36,479
A M Jackson 401 401
S P Morgan 13,894,422 13,494,422
N N Walmsley 2,000 –
D Howard* – –
* appointed 2 May 2002.
Details of Directors’ share options are set
out on page 23.
Employment Report 
In line with the Group’s objective of
facilitating and supporting a learning
culture, De Vere Hotels, Village Hotels &
Leisure Clubs and G&J Greenall are
accredited Investors in People. The Group is
committed to developing policies which
encourage all employees to achieve job
satisfaction and career development
through doing a worthwhile job well,
knowing that their contribution is valued
and their potential recognised and
developed. It is critical to the Group that
staff enjoy what they do and understand
how they are adding value to the business,
both individually and as part of a team.
The Group emphasises equal opportunities
in recruitment, terms and conditions of
employment, promotion and training for all
employees and encourages them to
develop their full potential regardless of
gender, marital status, social class, age,
colour, national or ethnic origin, religious
belief, sexual orientation or disability.
We actively encourage employees to
participate in the development of the
business and in matters which affect them
through briefings, representative and
consultative groups, employee opinion
surveys and suggestion schemes. Our
continually developing reward and
recognition arrangements include the
opportunity for staff to acquire shares in
the Company.
Health & Safety
Health and safety continues to be of
paramount importance to the Group.
Customer demand for safety is continuing
to grow and the health and safety of our
staff and our guests remains fundamental
to all our activities.
At the beginning of the year we undertook
to complete a review of risk management
systems, both for food safety and health
and safety. Whilst we have achieved this,
we recognise the process will remain
ongoing as we continue to seek to improve
our safety performance.
We also continue to monitor at Board 
level our accident and legal compliance
performance. Reportable accidents are
reviewed, as is local authority enforcement
activity.
We have continued to invest in risk
prevention and risk control measures, and
this, together with our continued
commitment to staff training, is ensuring
that health and safety remains high on
everyone’s agenda. Along with the
continued programme of risk reduction
throughout the estate, we have achieved
our objective to provide a platform from
which to build to continuously improve
safety performance to the benefit of all. REPORT OF THE DIRECTORS
Continued
18 DE VERE GROUP PLC REPORT OF THE DIRECTORS
Environmental Policy
Energy consumption is our biggest
environmental issue and our continuing
challenge is to minimise energy use. We
benchmark gas and electricity consumption
in sites across the Group and use this
information to apply best practice. Energy
efficiency remains a key feature of our
design, maintenance and refurbishment
programmes.
Various energy efficiency initiatives have
been trialled and implemented during the
year, including alternative heating and
energy management schemes, the active
procurement of energy efficient plant and
equipment, high efficiency boilers and low
energy lighting. As a consequence, at the
majority of sites, average energy usage per
unit has fallen by approximately 3% during
the year.
We also monitor and benchmark water
usage to allow comparisons to be made
between sites and to identify areas where
savings can be achieved.
Our waste conservation programmes are
continuing; the recycling of glass and
paper is being achieved through
nominated group contractors and
compactors have been installed at several
sites to minimise the volume of waste.
We are also working with our supply-chain
and encouraging our suppliers to develop
environmentally superior processes and
packaging to improve overall environmental
performance. This year saw the switch of
our preferred supplier for cleaning
chemicals to a company that have been
innovative in producing a new product line
and alternative packaging to lessen
environmental impact.
Supplier Payment Policy
The Group negotiates payment
arrangements and other terms and
conditions with all of its principal suppliers.
Payments to suppliers are made in
accordance with negotiated arrangements
other than in the event of a dispute. The
number of days purchases outstanding at
29 September 2002 was 57 for the Group
and 52 for the Company.
Charitable Donations and Investment
in the Community
Charitable donations totalled £98,700
(2001: £99,100) during the year and no
donation was made to any political party. 
The Group continues to recognise its
responsibility to the community and
actively encourages employees to involve
themselves in the causes and charities
closest to their own community. A
substantial level of community involvement,
staff commitment and sponsorship activity
is organised through our national network
of hotels, leisure clubs and offices. 
Auditors
In accordance with section 385 of the
Companies Act 1985 a resolution re-
appointing Ernst & Young LLP as auditors
for the ensuing year will be proposed at
the Company’s Annual General Meeting.
Special Business of Annual 
General Meeting
The Annual General Meeting is to be held
at 11.30 am on 14 February 2003 at 
De Vere Oulton Hall, Rothwell Lane,
Oulton, Leeds, Yorkshire, LS26 8HN. 
The Notice of Meeting, Agenda and
Explanations of any Special Business of 
the Annual General Meeting are sent to
shareholders separately.
By Order of the Board,
D C Edwards 
Company Secretary
4 December 2002 STATEMENT ON CORPORATE GOVERNANCE
STATEMENT ON CORPORATE GOVERNANCE ANNUAL REPORT & ACCOUNTS 2002 19
Corporate Governance
The Company complies with the detailed
Corporate Governance provisions of the
Combined Code incorporated into the
Listing Rules for quoted companies. The
Group complied with all Combined Code
requirements throughout the year.
Board Structure and Processes
The Board consists of its Non-executive
Chairman, its Chief Executive, Finance
Director and four Non-executive Directors,
with Mr A M Jackson as the senior Non-
executive Director. All members of the
Board submit themselves for re-election
every three years.
The Board meets at least every two months
during the year. The Board receives detailed
financial information on the business
performance in addition to items for
decision in advance of each Board Meeting.
The Directors are therefore able to make
informed decisions on corporate and
business issues under consideration.
The Non-executive Chairman, Lord
Daresbury, is responsible for the effective
operation and chairing of the Board. In
view of the previous positions he has held
with the company and his substantial
shareholding he is not considered to be an
independent director. Mr S P Morgan, with
his substantial shareholding, is also not
considered to be an independent director.
The Company Secretary is responsible for
ensuring that Board processes and
procedures are appropriately followed and
support effective decision making. All
Directors have access to the Company
Secretary’s advice and services and there is
also a formal procedure for Directors to
obtain independent professional advice in
the course of their duties, if necessary, at
the Company’s expense.
Audit Committee
The Company has an Audit Committee
consisting of Non-executive Directors under
the chairmanship of Mr N N Walmsley. 
The members of the Audit Committee are
as disclosed on page 16. In addition, 
Mr D E Reid served as Chairman of the
committee up to the date of his
resignation. It meets at least three times a
year and its terms of reference follow those
recommended by the Combined Code. 
The external Auditors are invited to attend
all the Audit Committee meetings and
other Board members are invited to attend
as appropriate. Part of each meeting of the
Audit Committee may be held between the
Non-executive Directors and the external
Auditors in private.
In addition, the Audit Committee keeps the
level of non-audit services, provided by the
Auditors, under review. Further details of
non-audit fees are disclosed in Note 2.
Remuneration Committee
The Chairman of this committee
throughout the year was Mr A M Jackson.
Mr Jackson resigned as Chairman on 
29 September 2002 and has been replaced
in this capacity by Ms D Howard. The
committee meets at least once a year to
determine the remuneration and other
terms of service of the Executive Directors
and to review their performance. Details of
the policy on the remuneration of directors
are given in the Report on Directors’
Remuneration. The members of the
Remuneration Committee also authorise
the granting of options under the Executive
Share Option Scheme. The Report on
Directors’ Remuneration is set out on pages
21 to 23.
Nomination Committee
The Company has a Nomination Committee
which consists of Non-executive Directors
under the Chairmanship of Mr A M Jackson.
This committee recommends to the Board
the appointment of all Executive and Non-
executive Directors.
Relations with Shareholders
Communications with shareholders are
given high priority. The operating and
financial review on pages 6 to 15 includes
a detailed review of the business and
future developments of the Group. There is
regular dialogue with institutional
shareholders including presentations after
the Company’s announcement of the half
year and year end results, and following
any strategic activity. 
The Board uses the Annual General
Meeting as an important means of
communication with private and
institutional investors and welcomes their
participation. The Chairman aims to ensure
that the Chairmen of the Audit,
Remuneration and Nomination committees
are available at Annual General Meetings
to answer questions. Details of resolutions
to be proposed at the Annual General
Meeting on 14 February 2003 can be
found in the Notice of Meeting.
To further improve communications with
shareholders, the Group has a website
(www.deveregroupplc.co.uk) dedicated to
corporate information such as: current and
historical financial reports, presentations
and press releases together with a link to
the current share price. Following recently
passed Government legislation, we now
offer our shareholders the option of
receiving electronic versions of shareholder
communications, including the annual and
interim reports. Information regarding this
service can be downloaded directly from
the corporate website.
Internal Control
The Board is responsible for the Group’s
system of internal control and for reviewing
its effectiveness. The system of internal
control is designed to manage the risks of
not meeting business objectives and is
intended to provide reasonable and not
absolute assurance against material
misstatement or loss.
The principal elements of the Group’s
system of internal control and risk
management, that comply with the
Turnbull guidance and which were in place
throughout the year under review and up
to the date of approval of the Accounts,
are as follows:
•A risk management report that is
reviewed at each meeting of the Board of
Directors. This report summarises all
foreseen strategic, operational, financial,
technical and environmental risks that
could prevent the achievement of
business objectives.
• All major risks identified in the risk
management reports are assessed and
allocated to specific individuals as
appropriate. Action plans to mitigate the
identified risks are in place. STATEMENT ON CORPORATE GOVERNANCE
Continued
20 DE VERE GROUP PLC STATEMENT ON CORPORATE GOVERNANCE
•A detailed budget is prepared for the
following financial year along with a
strategic plan for the subsequent three
years. Actual results are reported monthly
and compared to both budget and prior
year results. Operational performance of
the hotels is reviewed against external
industry benchmarks.
•A formal appraisal and approval process
is operated for all items of capital
expenditure. Projects are required to
demonstrate achievement of appropriate
operational and financial criteria.
•Key systems and controls are documented
and, on a monthly basis, self-certification
reports are signed off by heads of finance
functions across the Group.
• Internal audits are conducted in
accordance with a rolling programme.
Each hotel or business unit is audited at
least once each year, with further audits
being conducted in accordance with
perceived risk.
• The Group has a clearly defined
organisational structure which allows
appropriate segregation of duty.
Employees have prescribed authority
levels.
All aspects of Internal Control are
considered and monitored regularly by the
Board of Directors and the Audit
Committee.
The Directors confirm that they have
reviewed the effectiveness of the Internal
Control system in accordance with the
above procedures.
Going Concern
The Directors consider, after making
enquiries, that the Company has adequate
resources to continue in operational
existence for the foreseeable future and,
accordingly, that it is appropriate to adopt
the going concern basis in the preparation
of the Accounts.  REPORT ON DIRECTORS’ REMUNERATION
REPORT ON DIRECTORS’ REMUNERATION ANNUAL REPORT & ACCOUNTS 2002 21
Remuneration Policy
The aim of the Group’s remuneration
policy is to attract, motivate and retain
high quality individuals who will contribute
fully to the success of each of the Group’s
businesses. Competitive salaries and
benefits are provided to all employees in a
range of formats appropriate to the variety
of skill groups and markets in which the
Group operates. These include
performance-related annual pay reviews
and incentive schemes based on the
achievement of Group, Company and local
objectives.
Remuneration Committee
The Remuneration Committee is
responsible for determining the
emoluments of Executive Directors and for
the overall reward policy for Senior
Executives. The Committee’s members are
Mr A M Jackson, Mr N N Walmsley and 
Ms D Howard, and since 30 September
2002 it has been chaired by Ms D Howard.
Until his resignation on 30 April 2002 
Mr D E Reid was also a member of the
Remuneration Committee. Where
appropriate, the Committee obtains
independent professional advice on all
aspects of executive remuneration.
The Remuneration Committee does not
consider the fees payable to Non-executive
Directors, which are determined by the
Executive Directors.
Executive Directors’ Remuneration
Remuneration is reviewed annually or when
a change of responsibility occurs. The
Company’s policy, both during the past
year and for the forthcoming and
subsequent financial years, is to provide
levels of remuneration which are in line
with comparable jobs in the market place
and which will motivate and retain high
performing individuals.
Non-executive Directors’ Remuneration
So far as the Non-executive Directors are
concerned the Company’s policy is to
provide levels of remuneration which
reflect the duties and responsibilities of
each of the Non-executive Directors and
which are in line with market rates.
Performance Related Bonuses
Bonuses for Executive Directors, up to a
maximum of 50% of current basic salary,
are based on improvement in Group profit
excluding exceptional items.
Profit targets are set at the beginning of
each financial year and are reviewed
throughout the year.
For the year ending 29 September 2002 the
Executive Directors were awarded a bonus
of 36.35% of salary. The profit target for
the payment of this bonus was an increase
in the previous year’s EBIT of 10% or more.
Pensions
The Executive Directors are members of the
Group Pension Scheme. The standard
pension arrangements for Directors are
that they accrue pension at 1/30th of final
pensionable salary, for each year of service
up to normal retirement age of 60. If
Directors retire before the age of 60 a
reduced pension is payable. Benefits are
subject to the limits laid down by the
Inland Revenue, including a maximum
annual pension of two thirds final salary.
Details of Directors’ pension arrangements
are given on page 23.
On death before retirement, a life
assurance lump sum is payable together
with a spouse’s pension of 50% of the
Director’s accrued pension. On death after
retirement, a spouse’s pension of 50% of
the member’s pre-commutation pension is
payable. In the event of death after leaving
service but prior to commencement of
pension, a spouse’s pension equal to 50%
of the accrued preserved pension is
payable. Protection is also provided in the
event of serious ill health.
Long-term Incentives
The Group operates an approved and
unapproved Executive Share Option
Scheme together with a savings-related
Share Option Scheme. An Employee Co-
Investment Plan is also in place.
Executive Schemes
Grants under the Executive Schemes are
made to Directors and to those Senior
Executives, including General Managers of
the Hotels and Health & Fitness clubs, who
can contribute most to the achievement of
the Group’s business plans. The value of
grants are typically linked to the value of
annual cash incentives received by grantees
in the previous year and thus adds a
longer-term perspective to short-term
incentives.
Options are granted at the full prevailing
market price without discount.
Presently, options granted will be
exercisable only if, over the three year
period starting with the financial year
period in which the option is granted, the
total shareholder return of the Company’s
share has equalled or exceeded that of the
middle ranking company of the Leisure,
Entertainment and Hotels sector of the
FTSE Small Cap Index.
Sharesave Scheme
The terms of the De Vere Group Sharesave
Scheme 1995, in which Executive Directors
may participate on the same terms as other
eligible employees, include the grant of
options at a discount of 20% below the
market price.
Employee Co-Investment Plan
Shareholders approved the introduction of
the Employee Co-investment Plan in
February 2001. During the year 16
employees accepted invitations to
participate in the Employee Co-Investment
Plan. No Executive Directors currently
participate. Under this plan participants are
granted a conditional right to receive
shares. The rights are awarded in January
each year and vest after a three-year period
subject to achievement of a performance
test. The performance test is that the right
to receive shares does not vest unless the
Company’s ranking at the end of the
closing month (for awards made in January
2002 – September 2005) in a comparator
group comprising the constituents of the
Leisure Entertainment and Hotels sector of
the FTSE Small-Cap Index is at or above the
middle ranking position.
Other Benefits
Executive Directors are entitled to other
benefits such as the provision of a
company car and healthcare insurance
consistent with our industry norms. Directors’ Emoluments
Directors’ emoluments are summarised as follows:
2002 2001
Salary/ Other
Fees Bonus benefits Total
£000 £000 £000 £000 £000
Lord Daresbury 91–– 91 80
P B Dermody 239 88 20 347 294
R G Stubbs 156 58 14 228 203
A M Jackson 35–– 35 35
D E Reid
†
15–– 15 25
S P Morgan* –––– –
N N Walmsley 30–– 30 **12
D Howard 12 – – ***12 –
Total 578 146 34 758 649
* Mr S P Morgan has waived his director’s fees of £30,000 (2001: £30,000). The Company has agreed to pay an equivalent amount to that of the
fees to a charitable trust of its choice. 
** From date of appointment on 21 May 2001.
***From date of appointment on 2 May 2002.
†Fees until resignation on 30 April 2002.
The emoluments of the highest paid Director in 2002, Mr P B Dermody, amounted to £347,000 (2001: £294,000).
REPORT ON DIRECTORS’ REMUNERATION
Continued
22 DE VERE GROUP PLC REPORT ON DIRECTORS’ REMUNERATION
Service Contracts
Executive Directors now in office have been
appointed on the basis of a one-year
rolling contract. Non-executive Directors
are appointed for a fixed term and
thereafter from year to year by mutual
agreement.
On termination of an Executive Director’s
service contract there is an entitlement to
pre-determined compensation, linked to
annual salary and contractual benefits,
which is less than the full contractual
entitlement over the remaining period of
the contract, reflecting an adjustment for
mitigation.
External Non-executive Directorships
The Company considers that appointments
as Non-executive Directors of other
companies broadens the experience and
knowledge of Executive Directors to the
benefit of the business. Accordingly, such
appointments are permitted and Executive
Directors are allowed to retain the fees paid. REPORT ON DIRECTORS’ REMUNERATION ANNUAL REPORT & ACCOUNTS 2002 23
REPORT ON DIRECTORS’ REMUNERATION
Continued
Directors’ Pension Details
Additional disclosures in respect of Directors’ pension entitlements are given below:
Additional 
annual pension Accrued
earned during annual
Age at the year ended entitlement at
29 September Years of 29 September 29 September
2002 service 2002 2002
£000 £000
P B Dermody 57 39 17 195
R G Stubbs 51 23 20 92
The pension entitlement shown is that which would be granted at age 60 on leaving service at the end of the year. The increase in accrued
pension during the year excludes a 1.7% increase for inflation.
The transfer value of the accrued benefits for Mr P B Dermody were £2,603,000 (2001: £2,408,000) and for Mr R G Stubbs £811,000 
(2001: £779,000). The Directors did not contribute to the pension arrangements in either the current or the prior year.
Mr P B Dermody, who is the highest paid Director, had an accrued annual pension entitlement at 30 September 2001 of £175,000.
Share Options
As at 29 September 2002, the following options over the Company’s shares had been granted under the Executive Option Scheme and
Sharesave Schemes and remained outstanding:
Options Number Options Weighted
held at granted Number held at average
30 September during exercised 29 September subscription
2001 the year or lapsed 2002 price (p)
P B Dermody 209,714 – – 209,714 306
R G Stubbs 128,810 – – 128,810 304
At the year end Mr P B Dermody and Mr R G Stubbs had 133,981 and 86,623 options respectively that were ‘in the money’ at weighted
average option prices of 298 pence and 296 pence respectively.
No Director exercised any Share Options during the year or in the prior year.
Options held by Mr P B Dermody at 29 September 2002 are exercisable from December 2003 to September 2006.
Options held by Mr R G Stubbs at 29 September 2002 are exercisable from April 2004 to March 2011.
The market price of the Company’s shares at 29 September 2002 was 304 pence (2001: 250 pence) with a quoted range during the year of
234 pence to 385 pence. Full details of Directors’ Share Options are available in the Register of Directors’ Interests. 24 DE VERE GROUP PLC DIRECTORS’ RESPONSIBILITY FOR THE ACCOUNTS
DIRECTORS’ RESPONSIBILITY FOR THE ACCOUNTS
The following statement, which should be
read in conjunction with the Independent
Auditor’s Report set out on page 25, is
made with a view to distinguishing for
shareholders the respective responsibilities
of the Directors and of the Auditors in
relation to the Accounts.
In accordance with the Companies Act
1985, the Directors are required to prepare
Accounts for each financial year which give
a true and fair view of the state of affairs
of the Company and the Group at the end
of the financial year and of the profit or
loss for that period. The Directors consider
that, in preparing the Accounts, the Group
has used appropriate accounting policies,
consistently applied and supported by
reasonable and prudent judgements and
estimates, and that all accounting
standards which they consider to be
applicable, have been followed.
The Directors have responsibility for
ensuring that the Group keeps accounting
records which disclose with reasonable
accuracy the financial position of the
Group, enabling them to ensure that the
Accounts comply with the Companies Act
1985. The Directors have a general
responsibility to take reasonable steps to
safeguard the assets of the Group and to
prevent and detect fraud and other
irregularities. INDEPENDENT AUDITOR’S REPORT ANNUAL REPORT & ACCOUNTS 2002 25
INDEPENDENT AUDITOR’S REPORT
To the Members of De Vere Group Plc
We have audited the Group’s Accounts for
the year ended 29 September 2002, which
comprise the Consolidated Profit and Loss
Account, Group Balance Sheet, Company
Balance Sheet, Consolidated Cash Flow
Statement, Group Statement of Total
Recognised Gains and Losses, Statement of
Accounting Policies, Reconciliation of
Movement in Shareholders’ Funds and the
related Notes 1 to 27. These Accounts have
been prepared on the basis of the
accounting policies set out therein.
Respective Responsibilities of
Directors and Auditors
The Directors’ responsibilities for preparing
the Annual Report and the Accounts in
accordance with applicable United
Kingdom law and accounting standards are
set out in the Statement of Directors’
Responsibilities.
Our responsibility is to audit the Accounts
in accordance with relevant legal and
regulatory requirements, United Kingdom
Auditing Standards and the Listing Rules of
the Financial Services Authority.
We report to you our opinion as to
whether the Accounts give a true and fair
view and are properly prepared in
accordance with the Companies Act 1985.
We also report to you if, in our opinion,
the Directors’ report is not consistent with
the Accounts, if the company has not kept
proper accounting records, if we have not
received all the information and
explanations we require for our audit, or if
the information specified by law or the
Listing Rules regarding Directors’
remuneration and transactions with the
Group is not disclosed.
We review whether the Corporate
Governance statement reflects the
Company’s compliance with the seven
provisions of the Combined Code specified
for our review by the Listing Rules, and we
report if it does not. We are not required
to consider whether the Board’s statements
on internal control cover all risks and
controls or to form an opinion on the
effectiveness of either the Group’s
Corporate Governance procedures or its
risk and control procedures.
We read the other information contained
in the Annual Report and consider whether
it is consistent with the audited Accounts.
This other information comprises the
Chairman’s Statement, Chief Executive’s
Business Review, Financial Review, Report of
the Directors, Statement on Corporate
Governance and Report on Directors’
Remuneration. We consider the
implications for our report if we become
aware of any apparent misstatements or
material inconsistencies with the Accounts.
Our responsibilities do not extend to any
other information.
Basis of Audit Opinion
We conducted our audit in accordance
with Auditing Standards issued by the
Auditing Practices Board. An audit includes
examination, on a test basis, of evidence
relevant to the amounts and disclosures in
the Accounts. It also includes an
assessment of the significant estimates and
judgements made by the Directors in the
preparation of the Accounts, and of
whether the accounting policies are
appropriate to the Group’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 Accounts 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 Accounts.
Opinion
In our opinion the Accounts give a true
and fair view of the state of affairs of 
the Company and of the Group as at 
29 September 2002, and of the profit of
the Group for the year then ended and
have been properly prepared in accordance
with the Companies Act 1985.
Ernst & Young LLP
Registered Auditor
Manchester
4 December 2002 26 DE VERE GROUP PLC ACCOUNTING POLICIES
ACCOUNTING POLICIES 
which form an integral part of the Accounts
Basis of Accounts
The Accounts have been prepared in
accordance with applicable United
Kingdom accounting standards under the
historical cost convention with the
exception of hotel and health & fitness
properties which, under the transitional
provisions of FRS 15 – Tangible Fixed
Assets, are included at their 1999
valuations. Since 1999 it has been Group
policy not to revalue fixed assets.
FRS 19 – Deferred Tax has been adopted
this year and has resulted in the prior year
adjustment detailed in Note 18.
As disclosed in Note 2 certain expenditure
has been reclassified between cost of sales
and other operating expenses.
Basis of Consolidation
The consolidated profit and loss account
and balance sheet combine the Accounts
of the Company and its subsidiary
undertakings which are prepared up to 
29 September 2002 and represent the
operations of the Group for a period of 52
weeks. In accordance with Section 230 of
the Companies Act 1985, no separate
profit and loss account is presented for the
Company.
Results of subsidiary undertakings and
businesses acquired or sold during the year
are included from or up to their respective
dates of acquisition or disposal.
Entities in which the Group holds an
interest on a long-term basis are jointly
controlled by the Group and one or more
other ventures under a contractual
arrangement are treated as joint ventures.
In the Group accounts, joint ventures are
accounted for using the gross equity
method.
For acquisitions prior to September 1998,
the difference between the purchase
consideration and the fair value of
identifiable net assets at the date of
acquisition was dealt with as a movement
on reserves. On subsequent disposal of
such businesses such goodwill is taken into
account in determining the profit or loss
on sale or closure.
Tangible Fixed Assets and Depreciation
The cost of tangible fixed assets represents
the actual purchase price paid. Cost
includes gross interest on capital invested
in major property development and directly
attributable costs.
Fixtures and fittings contains items of
plant, machinery, fixtures and fittings, and
equipment including computers.
Depreciation is not provided on freehold
land.
Depreciation is provided to write-off the
cost or valuation of all other fixed assets
over their useful lives to their estimated
residual values and is calculated by the
straight-line method at the following rates:
Per annum
Hotels and 
health & fitness buildings 2%
Other properties 2%
Production plant 5% – 20%
Motor vehicles 10% – 50%
Fixtures and fittings 5% – 20%
Leasehold properties are depreciated over
the shorter of 50 years or their remaining
useful lives.
The carrying values of tangible fixed assets
are reviewed for impairment in periods if
events or changes in circumstances indicate
that the carrying value may not be
recoverable. 
Assets under construction are not
depreciated until they are ready for use. 
When an asset is fully depreciated and no
longer in use both the gross amount and
the aggregate depreciation are eliminated
from the Accounts.
Stock
Stock is valued at the lower of cost and net
realisable value. Cost comprises expenditure
directly incurred in purchasing or
manufacturing stock and includes an
appropriate amount of overhead.
The value attributed to timeshare stock is
the cost of building the lodges apportioned
to each week on the basis of the selling
price for that week.
Certain operating supplies are treated as a
base stock and renewals and replacements
of such stock are written-off to the profit
and loss account as incurred.
Deferred Taxation
FRS 19 – Deferred Tax has been adopted
for these accounts. The standard requires
full provision to be made for deferred tax
assets and liabilities arising from timing
differences, between the recognition of
gains and losses in the financial statements
and their recognition in tax computations,
with the exception of timing differences
arising from the revaluation of, or gains
rolled over into fixed assets for which there
is no binding agreement to sell or on the
undistributed profits of overseas
subsidiaries. Deferred tax is calculated at
the rates at which it is estimated the tax
will arise. The deferred tax provision has
not been discounted to net present values.
Deferred tax assets are recognised only to
the extent that the Directors consider that
it is more likely than not that there will be
suitable taxable profits from which the
future reversal of the underlying timing
differences can be deducted.
Previously provision was made for
deferred taxation on timing differences
which were not expected to continue in
the future. No provision was made for
taxation on chargeable gains arising from
disposals of properties because any
liability would be postponed by the
application of rollover relief.
Turnover
Turnover is the value of goods and services
sold to third parties, including excise
duties, as part of the Group’s trading
activities, after deducting discounts and
sales based taxes.
Joining fees in respect of health and fitness
memberships are accounted for when
received. All other fees and subscriptions
are recognised over the membership period. ACCOUNTING POLICIES ANNUAL REPORT & ACCOUNTS 2002 27
ACCOUNTING POLICIES 
which form an integral part of the Accounts – Continued
Sales of timeshares are recognised at the
later of the time of sale or the date
building work on the lodge is complete.
Pensions
Pension costs relating to the Group defined
benefit scheme are charged to the profit
and loss account in accordance with the
advice of independent qualified actuaries
based on an assessment of the current and
expected future pensionable payroll.
Actuaries’ assessments of the pension
scheme are carried out every three years
and surpluses or deficiencies disclosed by
the valuations are amortised over the
remaining service lives of the members
except where there is a significant
reduction in the number of employees in
the scheme. Differences between the
amount charged in the profit and loss
account and the payments made to the
schemes are treated as provisions or
prepayments in the balance sheet.
Payments to money purchase pension
schemes are charged as incurred.
Leases
Assets, which are subject to finance leases,
are capitalised and the related depreciation
charged to the profit and loss account.
Lease payments are treated as consisting of
interest and capital, interest being charged
to the profit and loss account over the
term of the lease on an actuarial basis.
Rental payments in respect of operating
leases are charged to the profit and loss
account on a straight-line basis. Provision
has been established for future anticipated
costs related to leased premises no longer
occupied by the Group. 28 DE VERE GROUP PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT
CONSOLIDATED PROFIT & LOSS ACCOUNT
for the year ended 29 September 2002
2002 2001
£000 £000
Notes restated*
Turnover
Continuing operations 1 293,888 273,771
Discontinued operations 1 – 54,928
293,888 328,699
Cost of sales 2 (173,037) (207,371)
Gross profit 120,851 121,328
Other operating expenses (net) 2/3 (68,695) (77,544)
Operating profit
Continuing operations 1 51,856 49,755
Exceptional items 4 300 (2,534)
52,156 47,221
Discontinued operations 1 – (3,437)
52,156 43,784
Loss on disposal of business 4 – (49,893)
Surplus on disposal of properties 4 508 762
52,664 (5,347)
Investment income 5 213 790
Interest payable 6 (14,345) (13,496)
Profit/(loss) on ordinary activities before taxation 38,532 (18,053)
Taxation on profit on ordinary activities 7 (11,475) (5,577)
Profit/(loss) on ordinary activities after taxation 27,057 (23,630)
Ordinary dividends 8 (12,679) (11,802)
Profit/(loss) for the year 20 14,378 (35,432)
Earnings/(loss) per share 9
Basic 24.19p (21.21)p
Diluted 23.89p (21.21)p
Earnings per share excluding exceptional items 9
Basic 23.55p 21.22p
Diluted 23.36p 21.22p
* Prior year figures have been restated to reflect the implementation of FRS 19 – Deferred Tax. BALANCE SHEETS ANNUAL REPORT & ACCOUNTS 2002 29
BALANCE SHEETS
at 29 September 2002
Group Company
2002 2001 2002 2001
£000 £000 £000 £000
restated* restated*
Fixed assets
Tangible assets 10 848,473 818,938 11,712 15,057
Investments 11 6,804 6,531 345,637 345,637
855,277 825,469 357,349 360,694
Current assets
Stocks 12 14,078 14,218 3,022 2,258
Debtors – amounts falling due:
within one year 13 31,254 29,536 35,342 24,791
after more than one year (including deferred tax asset) 13 8,415 6,236 770,432 918,851
Cash at bank and in hand 5,460 6,372 638 27,660
59,207 56,362 809,434 973,560
Creditors: amounts falling due within one year 14
Convertible subordinated bonds (109,673) – (109,673) –
Other creditors (103,239) (107,570) (68,074) (72,995)
Net current (liabilities)/assets (153,705) (51,208) 631,687 900,565
Total assets less current liabilities 701,572 774,261 989,036 1,261,259
Creditors: amounts falling due after more than one year
Convertible subordinated bonds 15 – (109,692) – (109,692)
Other creditors 15 (117,313) (106,644) (519,201) (694,937)
(117,313) (216,336) (519,201) (804,629)
Provisions for liabilities and charges 16 (21,654) (11,856) (4,418) (4,447)
Net assets 562,605 546,069 465,417 452,183
Capital and reserves
Called up share capital 19 24,938 24,768 24,938 24,768
Share premium 20 2,317 329 2,317 329
Revaluation reserve 20 99,611 99,851 – –
Other reserves 20 271,133 271,133 272,633 272,633
Profit and loss account 20 164,606 149,988 165,529 154,453
Equity shareholders’ funds 562,605 546,069 465,417 452,183
* Prior year figures have been restated to reflect the implementation of FRS 19 – Deferred Tax.
Approved by the Board of Directors on 4 December 2002 and signed on their behalf by: 
P B Dermody Director
R G Stubbs Director
Notes 30 DE VERE GROUP PLC CONSOLIDATED CASH FLOW STATEMENT
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 29 September 2002
2002 2001
Notes £000 £000 £000 £000
Net cash inflow from operating activities
before reorganisation costs 24 69,213 51,986
Net cash outflow in respect of non-operating reorganisation 
costs arising in – current year – (5,677)
– previous year (11,016) (18,456)
Net cash inflow from operating activities 58,197 27,853
Returns on investments and servicing of finance
Interest received 245 888
Interest paid (11,431) (11,588)
Interest element of finance lease rental payments (3,119) (3,295)
Net cash outflow from returns on investments 
and servicing of finance (14,305) (13,995)
Tax (paid)/recovered (143) 1,371
Capital expenditure and financial investment
Purchase of tangible fixed assets (56,464) (124,649)
Purchase of investments – (4,849)
Sale of trade investments – 1,179
Sale of tangible fixed assets 6,074 23,937
Net cash outflow from capital expenditure 
and financial investment (50,390) (104,382)
Net cash inflow from acquisitions and disposals
Disposal of businesses (net of costs) – 9,846
Dividends paid (12,120) (11,361)
Net cash outflow before financing (18,761) (90,668)
Financing
Issues of Ordinary share capital 2,158 263
Increase in amounts borrowed 25 19,569 34,339
Net cash inflow from financing 21,727 34,602
Increase/(decrease) in cash 25 2,966 (56,066) OTHER STATEMENTS ANNUAL REPORT & ACCOUNTS 2002 31
OTHER STATEMENTS
for the year ended 29 September 2002
Statement of Total Recognised Gains and Losses 2002 2001
£000 £000
restated*
Total recognised gains and losses for the year 27,057 (23,630)
Prior year adjustment – FRS 19 (1,259) –
Total recognised gains and losses since the last annual accounts 25,798 (23,630)
Note of Historical Cost Profits and Losses 2002 2001
£000 £000
restated*
Reported profit/(loss) on ordinary activities before taxation 38,532 (18,053)
Realisation of property revaluation gains of previous years 240 480
Historical cost profit/(loss) on ordinary activities before taxation 38,772 (17,573)
Historical cost profit/(loss) for the year retained after taxation and dividends 14,618 (34,952)
Reconciliation of Movements in Shareholders’ Funds 2002 2001
£000 £000
restated*
Profit/(loss) attributable to Ordinary shareholders of the Company 27,057 (18,690)
Prior year adjustment – Impact of adopting FRS 19 – (4,940)
Profit/(loss) attributable to Ordinary shareholders of the Company – as restated 27,057 (23,630)
Ordinary dividends (12,679) (11,802)
14,378 (35,432)
Shares issued (net of costs) 2,158 263
Goodwill written back in respect of business disposals – 18,224
Net movement in shareholders’ funds 16,536 (16,945)
Opening shareholders’ funds* 546,069 563,014
Closing shareholders’ funds 562,605 546,069
* Prior year figures have been restated to reflect the implementation of FRS 19 – Deferred Tax. 32 DE VERE GROUP PLC NOTES TO THE ACCOUNTS
NOTES TO THE ACCOUNTS
1. Segmental Analysis
Turnover, profit and net assets
All of the Group’s material business activities and related net assets are situated in the UK and all sales and profits are earned from 
business conducted in the UK.
2002 2001
Operating Net Operating Net
Analysis of turnover, profit and Turnover profit assets Turnover profit assets
net assets by class of business £000 £000 £000 £000 £000 £000
restated*
Continuing operations:
De Vere 177,808 35,254 537,581 174,666 36,368 527,504
Exceptional items** (Note 4) – 300 – – (2,534) –
177,808 35,554 537,581 174,666 33,834 527,504
Village 64,210 13,378 185,608 56,713 12,616 174,816
Greens 24,012 1,318 63,241 13,466 (1,018) 49,441
G&J Greenall 27,858 1,906 4,307 28,926 1,789 5,594
293,888 52,156 790,737 273,771 47,221 757,355
Discontinued operations ––– 54,928 (3,437) –
293,888 52,156 790,737 328,699 43,784 757,355
Net borrowings –– (228,132) –– (211,286)
293,888 52,156 562,605 328,699 43,784 546,069
* Prior year figures have been restated to reflect the implementation of FRS 19 – Deferred Tax.
** The 2002 exceptional income of £300,000 is the compensation in respect of committed income not received due to the postponement of 
The Ryder Cup until September 2002 following the events of 11 September 2001. The 2001 exceptional item includes £1,330,000 relating to 
restructuring costs and £1,204,000 of abortive costs for preparing to host the subsequently postponed Ryder Cup at The De Vere Belfry. 
Figures for discontinued operations relate solely to Tavern, the drinks wholesaling business. NOTES TO THE ACCOUNTS
Continued
NOTES TO THE ACCOUNTS ANNUAL REPORT & ACCOUNTS 2002 33
2. Cost of Sales and Other Operating Expenses
2002 2001
£000 £000
restated*
Cost of sales:
Continuing operations 173,037 160,815
Discontinued operations – 46,556
173,037 207,371
Other operating expenses:
Distribution costs:
Continuing operations 813 915
Discontinued operations – 8,364
813 9,279
Administration costs:
Continuing operations 67,882 64,820
Discontinued operations – 3,445
67,882 68,265
Total other operating expenses 68,695 77,544
*Following a review of the classification of expenditure between cost of sales and other operating expenses in the Hotels and Leisure sector, direct
costs of running hotels and some other costs relating to procurement of sales have been reclassified as cost of sales from administration costs.
The adjustment for the current year is £118,301,000 (2001: £106,347,000). This restatement does not have any impact on operating profit. 
Administration costs include exceptional income of £300,000 (2001: exceptional costs of £2,534,000 – see Note 4).
2002 2001
£000 £000
Cost and expenses include the following:
Depreciation of owned tangible fixed assets 23,073 21,085
Depreciation of leased tangible fixed assets 113 206
Repairs and maintenance 8,016 7,121
Operating leases – plant and machinery 1,528 2,692
– land and buildings 4,652 3,478
Fees payable to the Group’s Auditor, Ernst & Young, are analysed as follows:
2002 2001
£000 £000
Audit fees 84 90
Other services:
Disposal – Tavern – 227
Aborted disposal – Greens 35 –
HMCE duty case 63 –
Non-audit fees 98 227 NOTES TO THE ACCOUNTS
Continued
34 DE VERE GROUP PLC NOTES TO THE ACCOUNTS
2. Cost of Sales and Other Operating Expenses (continued)
Both the audit fees and non-audit fees payable to Ernst & Young are reviewed by the Audit Committee to ensure they are
cost effective and that their independence is maintained. It has been beneficial to the Group to use Ernst & Young for
engagements which utilise their expertise and knowledge of the De Vere Group.
Fees to other major firms of accountants for non-audit services amounted to £400,000 (2001: £549,000).
2002 2001
£000 £000
Analysis of depreciation charge:
De Vere 13,119 12,991
Village 5,869 5,016
Greens 3,459 1,512
G&J Greenall 739 734
Discontinued Operations – 1,038
23,186 21,291 NOTES TO THE ACCOUNTS
Continued
NOTES TO THE ACCOUNTS ANNUAL REPORT & ACCOUNTS 2002 35
3. Employee Costs
2002 2001
Particulars of employee costs including those of Directors: £000 £000
Wages and salaries 84,700 83,870
Social security costs 6,108 5,924
Pension costs – Group Pension Scheme 1,011 1,383
– Money Purchase Scheme 391 258
92,210 91,435
Details of Directors’ emoluments are included in the Report on Directors’ Remuneration on pages 21 to 23.
The average number of persons
employed by the Group was as follows: Full Time Part Time
2002 2001 2002 2001
Continuing operations:
De Vere 3,137 3,001 868 885
Village 1,138 997 811 799
Greens 383 274 230 152
G&J Greenall 85 86 7 3
Discontinued operations – 354 – 5
4,743 4,712 1,916 1,844
4. Exceptional Items
2002 2001
£000 £000
Operating exceptional items:
De Vere Hotels and Leisure – Head Office restructuring – (1,330)
– Ryder Cup costs – (1,204)
– Ryder Cup compensation 300 –
300 (2,534)
Non-operating exceptional items:
Loss on sale and closure of the drinks wholesaling business (Tavern) – (31,669)
Goodwill previously written-off (Tavern) – (18,224)
– (49,893)
Surplus on disposal of properties – continuing 508 762
508 (49,131)
The operating exceptional item of £300,000 is the compensation in respect of committed income not received due to the
postponement of The Ryder Cup until September 2002 following the events of 11 September 2001.
The current year operating exceptional item of £300,000 was received in the year (2001: £1,204,000 was paid in the year
and head office restructuring costs incurred in 2001 were paid in 2002). NOTES TO THE ACCOUNTS
Continued
36 DE VERE GROUP PLC NOTES TO THE ACCOUNTS
5. Investment Income
2002 2001
£000 £000
Income from fixed asset investments – 33
Bank and other interest 213 757
213 790
6. Interest Payable
2002 2001
£000 £000
Bank overdrafts and loans 144 57
Debentures, bonds and other loans 11,364 11,001
Finance lease charges 3,119 3,295
Amortisation of debt issue costs 243 211
14,870 14,564
Interest capitalised at 5.1% (2001: 6.4%) (525) (1,068)
14,345 13,496
7. Taxation on Profit on Ordinary Activities
2002 2001
(i) Analysis of tax charge £000 £000
restated*
UK Corporation tax:
– pre-exceptional items – 4,677
– non-operating exceptional items – (3,650)
– other operating exceptional items 90 (750)
90 277
Overseas tax 382 360
Total current tax 472 637
Deferred tax 11,003 4,940
11,475 5,577
2002 2001
(ii) Reconciliation of total current tax charge £000 £000
Profit/(loss) on ordinary activities before taxation 38,532 (18,053)
Notional tax charge/(credit) at UK Corporation tax rate of 30% 11,560 (5,416)
Expenses not deductible for tax purposes (including amortisation of goodwill) 1,073 11,931
Deduction for items charged in prior years (3,161) (5,257)
Capital allowances in excess of depreciation (6,436) (7,712)
Differences in overseas tax rates (299) (625)
(Utilisation)/increase in tax losses (1,933) 8,118
Capital gains not attracting tax (152) (229)
Other items (180) (173)
472 637 NOTES TO THE ACCOUNTS
Continued
NOTES TO THE ACCOUNTS ANNUAL REPORT & ACCOUNTS 2002 37
7. Taxation on Profit on Ordinary Activities (continued)
FRS 19 – Deferred Tax has been adopted for these accounts. The standard requires full provision to be made for deferred tax assets and
liabilities arising from timing differences, between the recognition of gains and losses in the financial statements and their recognition in tax
computations, with the exception of timing differences arising from the revaluation of fixed assets for which there is no binding agreement to
sell or on the undistributed profits of overseas subsidiaries. No provision is made where, on the basis of all available evidence at the balance
sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the
replacement assets are sold. Deferred tax is calculated at the rates at which it is estimated the tax will arise. The deferred tax provision has not
been discounted to net present values.
The impact of this change in policy on the tax charge for the year to 29 September 2002 has been to increase the charge by
£11,003,000. The comparative amounts have been restated for the year to 30 September 2001 resulting in an increase in the
tax charge of £4,940,000 for that year and a prior year adjustment of a credit to the profit and loss reserve of £3,681,000 in
respect of earlier years. The impact of the change to the balance sheet can be found in Note 18.
(iii) Factors that may affect future tax charges
The Group does not expect to pay any UK Corporation tax for the next three years as a result of the availability of tax losses
carried forward and accelerated capital allowances on its ongoing capital expenditure programme.
As a result of deferred and overseas tax, the Group expects its tax charge for the forseeable future to remain at an effective
rate close to the UK Corporation tax rate of 30%.
Deferred tax assets have not been recognised where the likelihood of realisation fails to meet the ‘more likely than not’
criterion. No provision has been made for deferred tax on gains recognised on revaluing property or on the sale of properties
where potentially taxable gains have been rolled over into replacement assets. At the year end, the total unprovided deferred
tax on assets if sold at book value would be £75 million (2001: £65 million) and on gains rolled over into replacement assets
£nil (2001: £12 million). Such tax would only become payable if the properties were sold without it being possible to claim
rollover relief and if expenditure on replacement assets were less than anticipated. However, it is not expected that any capital
gain will be crystallised in the foreseeable future.
8. Dividends
2002 2001
£000 £000
Ordinary shares:
Interim paid on 5 July 2002 at 3.95 pence (2001: 3.70 pence) per share 4,429 4,120
Final proposed to be paid on 21 February 2003 to members
on the Register on 24 January 2003 at 7.35 pence (2002: 6.90 pence) per share 8,250 7,682
12,679 11,802 NOTES TO THE ACCOUNTS
Continued
38 DE VERE GROUP PLC NOTES TO THE ACCOUNTS
9. Earnings/(Loss) Per Share
Basic earnings per share is calculated with reference to the earnings/(loss) attributable to Ordinary shareholders of
£27,057,000 (2001: loss of £23,630,000) and the weighted average number of Ordinary shares in issue during the year of
111,830,000 (2001: 111,393,000).
Diluted earnings per share is basic earnings/(loss) per share adjusted for the effect of the conversion into fully paid 
Ordinary shares of all Convertible subordinated bonds 2003 and all dilutive share options. Diluted earnings for the year 
were £32,417,000 (2001: losses of £18,267,000) and the weighted average number of Ordinary shares was 135,705,000 
(2001: 134,983,000).
Adjusted earnings per share figures are disclosed based on the elimination from earnings of exceptional items.
2002 2001
Earnings per share Notes pence pence
Basic:
Earnings/(loss) per Ordinary share of 22 
2
/9 pence 24.19 (21.21)
Exceptional items net of taxation 4 and 7 (0.64) 42.43
Adjusted basic earnings per share 23.55 21.22
Diluted:
Earnings/(loss) per Ordinary share 23.89 (21.21)
Exceptional items net of taxation 4 and 7 (0.53) 42.43
Adjusted diluted earnings per share 23.36 21.22
10. Tangible Fixed Assets
2002 2001
Group £000 £000
Properties:
Hotels and Health & Fitness Properties 698,578 671,561
Other properties 8,368 11,426
706,946 682,987
Comprising:
Freehold 552,725 539,932
Long leasehold 103,645 98,818
Short leasehold 50,576 44,237
Fixtures and fittings 141,527 135,951
Net book values 848,473 818,938
Historical cost of properties
Cost 613,669 587,941
Depreciation based on cost (5,614) (4,325)
Historical net book amounts 608,055 583,616 NOTES TO THE ACCOUNTS
Continued
NOTES TO THE ACCOUNTS ANNUAL REPORT & ACCOUNTS 2002 39
10. Tangible Fixed Assets (continued)
Hotels and
health & fitness Other Fixtures
properties properties and fittings Total
Group £000 £000 £000 £000
Gross amounts
At 30 September 2001 674,523 13,269 175,133 862,925
Additions during year 32,157 – 26,256 58,413
Fully depreciated assets – – (7,598) (7,598)
Disposals (2,578) (4,091) (105) (6,774)
At 29 September 2002 704,102 9,178 193,686 906,966
At cost 190,101 9,178 193,686 392,965
At valuation 1999 514,001 – – 514,001
704,102 9,178 193,686 906,966
Aggregate depreciation
At 30 September 2001 2,962 1,843 39,182 43,987
Charge for the year 2,562 28 20,596 23,186
Fully depreciated assets – – (7,598) (7,598)
Depreciation eliminated on disposal – (1,061) (21) (1,082)
At 29 September 2002 5,524 810 52,159 58,493
Net book values:
At 29 September 2002 698,578 8,368 141,527 848,473
At 30 September 2001 671,561 11,426 135,951 818,938
The net book value of tangible fixed assets includes an amount of £54,198,000 (2001: £54,282,000) in respect of assets held
under finance leases. 
The aggregate amount of capitalised interest included in fixed assets is £6,514,000 (2001: £5,989,000).
Included above are assets under construction amounting to £6,050,000 (2001: £11,977,000). These assets are not
depreciated until ready for use. NOTES TO THE ACCOUNTS
Continued
40 DE VERE GROUP PLC NOTES TO THE ACCOUNTS
10. Tangible Fixed Assets (continued)
2002 2001
Company £000 £000
Properties:
Freehold 7,805 9,892
Long leasehold 372 380
Short leasehold 38 1,001
8,215 11,273
Fixtures and fittings 3,497 3,784
Net book values 11,712 15,057
Historical cost of properties
Cost 9,025 13,116
Depreciation based on cost (810) (1,843)
Historical net book amounts 8,215 11,273
Fixtures
Properties and fittings Total
Company £000 £000 £000
Gross amounts (at cost)
At 30 September 2001 13,116 6,414 19,530
Additions during year – 508 508
Fully depreciated assets – (46) (46)
Disposals (4,091) (105) (4,196)
At 29 September 2002 9,025 6,771 15,796
Aggregate depreciation
At 30 September 2001 1,843 2,630 4,473
Charge for the year 28 711 739
Fully depreciated assets – (46) (46)
Depreciation eliminated on disposal (1,061) (21) (1,082)
At 29 September 2002 810 3,274 4,084
Net book values:
At 29 September 2002 8,215 3,497 11,712
At 30 September 2001 11,273 3,784 15,057
There were no assets held under finance leases and no capitalised interest included within fixed assets in either the current 
or prior year. NOTES TO THE ACCOUNTS
Continued
NOTES TO THE ACCOUNTS ANNUAL REPORT & ACCOUNTS 2002 41
11. Investments
Joint
Loans Listed Ventures Total
Group £000 £000 £000 £000
At cost/value
At 30 September 2001 1,000 1,337 5,381 7,718
Share of operating profit/(loss) of joint ventures – – 273 273
At 29 September 2002 1,000 1,337 5,654 7,991
Provisions
At 30 September 2001 and at 29 September 2002 – 1,187 – 1,187
Net book values at 29 September 2002 1,000 150 5,654 6,804
Net book values at 30 September 2001 1,000 150 5,381 6,531
2002 2001
Company £000 £000
Subsidiary undertakings 340,721 340,721
Other investments 4,916 4,916
345,637 345,637
Subsidiary undertakings £000
At cost
At 30 September 2001 and at 29 September 2002 340,721
Provisions
At 30 September 2001 and at 29 September 2002 –
Net book values at 30 September 2001 and at 29 September 2002 340,721 NOTES TO THE ACCOUNTS
Continued
42 DE VERE GROUP PLC NOTES TO THE ACCOUNTS
11. Investments (continued)
Joint
Listed Ventures Total
Company £000 £000 £000
At cost
At 30 September 2001 and at 29 September 2002 1,337 4,766 6,103
Provisions
At 30 September 2001 and at 29 September 2002 1,187 – 1,187
Net book values at 30 September 2001 and at 29 September 2002 150 4,766 4,916
All investments are in companies incorporated in England and Wales. 
Listed investments are listed on The London Stock Exchange.
The fair value of investments at 29 September 2002 was £6,994,000 (Group) (2001: £6,884,000) and £5,106,000 (Company)
(2001: £5,766,000). Listed investments include a 16% holding in the Ordinary shares of Paramount plc. The market value of
listed investments at 30 September 2001 was £324,000. Joint venture investments in the Company relate principally to a 50%
interest in Daresbury Park Developments Limited, the company developing the Group’s land interests near its head office.
Additionally, in the Group, they include a 20% interest in a joint venture company, Bolton Whites Hotel Limited. The Group’s
share of gross assets and liabilities in joint ventures is as follows:
2002 2001
£000 £000
Share of gross assets 9,814 14,924
Share of gross liabilities (4,910) (10,293)
Preference share capital held 750 750
Group’s total interest 5,654 5,381
Daresbury Park Developments Limited prepares accounts to 31 December for each financial period. Bolton Whites Hotel
Limited prepares accounts up to 30 June for each financial year.
The market value of other investments, as adjusted by provisions, is not materially different from book value.
Subsidiary undertakings
The principal subsidiary undertakings in which the Company holds 100% of the issued Ordinary share capital are set out
below. All subsidiary undertakings are registered in England and Wales and operate principally in the United Kingdom.
Main Activity
De Vere Hotels & Leisure Limited* Hoteliers and leisure club operators 
De Vere Golf & Leisure Limited* Leisure club and golf course operators
* Indirect holding NOTES TO THE ACCOUNTS
Continued
NOTES TO THE ACCOUNTS ANNUAL REPORT & ACCOUNTS 2002 43
12. Stocks
Group Company
2002 2001 2002 2001
£000 £000 £000 £000
Raw materials 1,781 1,690 1,781 1,690
Finished goods 4,371 4,604 1,154 288
Consumable stores 2,181 2,066 87 280
Resort Ownership stocks 5,745 5,858 – –
14,078 14,218 3,022 2,258
The difference between purchase price and production cost of stocks and their replacement cost is not material.
13. Debtors
Group Company
2002 2001 2002 2001
£000 £000 £000 £000
restated*
Due within one year:
Trade debtors 15,122 14,894 4,518 4,716
Loans to employees 18 13 – –
Other debtors 5,719 5,882 1,148 1,962
Due from subsidiary undertakings – – 15,664 25
Due from joint ventures 1,850 303 – –
Prepayments and accrued income 6,828 6,398 3,136 3,008
Corporation tax 1,717 2,046 9,502 14,164
Value added tax – – 1,374 916
31,254 29,536 35,342 24,791
Due after more than one year:
Due from subsidiary undertakings – – 743,092 887,164
Deferred tax asset – – 27,340 31,687
Other debtors 8,415 6,236 – –
8,415 6,236 770,432 918,851
* Prior year figures have been restated to reflect the implementation of FRS 19 – Deferred Tax. NOTES TO THE ACCOUNTS
Continued
44 DE VERE GROUP PLC NOTES TO THE ACCOUNTS
14. Creditors: amounts falling due within one year
Group Company
2002 2001 2002 2001
Notes £000 £000 £000 £000
Short-term loans repayable on demand 15 8,063 9,051 8,063 9,051
7% Convertible subordinated bonds 2003 15 109,673 – 109,673 –
Bank overdrafts 875 4,753 2 94
Net obligations under finance leases 168 152 – 7
Trade creditors 23,642 22,306 3,490 2,663
Due to subsidiary undertakings – – 13,186 14,671
Value added tax 5,643 5,251 – –
Social security and PAYE 1,498 1,617 170 108
Other creditors 29,495 9,935 29,499 4,805
Accruals and deferred income 25,605 46,814 5,414 33,905
Proposed dividends 8,250 7,691 8,250 7,691
212,912 107,570 177,747 72,995 NOTES TO THE ACCOUNTS
Continued
NOTES TO THE ACCOUNTS ANNUAL REPORT & ACCOUNTS 2002 45
15. Creditors: amounts falling due after more than one year
Group Company
2002 2001 2002 2001
Notes £000 £000 £000 £000
Debentures and loan stock
7% Convertible subordinated bonds 2003 (i) 109,673 109,692 109,673 109,692
Loan notes (ii) 5,504 6,348 5,504 6,348
Unsecured loan stocks 2002-2013 (floating rate) 2,559 2,703 2,559 2,703
117,736 118,743 117,736 118,743
Unsecured bank loans – revolving credit facility (iii) 54,068 34,825 54,068 34,825
Hotel finance lease obligations (iv) 60,519 58,845 – –
Other finance leases 226 340 – –
232,549 212,753 171,804 153,568
Less current instalments and amounts
repayable on demand or within one year 14 (117,736) (9,051) (117,736) (9,051)
Total borrowings falling due after more than one year 114,813 203,702 54,068 144,517
Other creditors 2,500 12,634 2,500 12,634
Due to subsidiary undertakings (v) – – 462,633 647,478
Total creditors falling due after more than one year 117,313 216,336 519,201 804,629
Maturity schedule
By instalments:
Due between two and five years – 2,500 – 2,500
Due between one and two years 2,500 10,474 2,500 10,134
Other than by instalments:
Due over ten years 60,519 58,845 462,633 647,478
Due between five and ten years – 34,825 – 34,825
Due between two and five years 54,294 – 54,068 –
Due between one and two years – 109,692 – 109,692
117,313 216,336 519,201 804,629
(i) The 7% Convertible subordinated bonds 2003, unless converted into 22 
2
/9 pence Ordinary shares at 465 pence per
share*, will be redeemed at their outstanding principal amount on 24 September 2003. Consequently the bonds are
disclosed as creditors falling due within one year.
As disclosed in the Financial Review on page 14 the Group expects to repay the Convertible subordinated bonds from its
existing Revolving Credit Facility and a new US $100 million long-term debt facility. The principal and interest payable on
this new facility have been hedged into Sterling for the full term of the facility. Interest on the US $100 million will initially
be payable at a floating rate linked to LIBOR until September 2003 and then at a fixed rate of approximately 7.15%.
* Giving a conversion rate of 21.5054 Ordinary shares for every £100 of Convertible subordinated bonds. Where 75% of the principal value
has been converted, the Company has the right to convert the whole of the remaining issue by giving at least 30 days notice.
(ii) The annual rate of interest on the Loan notes is 1% below LIBOR. The Loan notes are redeemable at par by holders 
on any interest payment date on 30 days notice. If at any time the amount of outstanding Loan notes is less than 
£5 million, the Company may redeem the outstanding balance on 30 days notice. Otherwise the Loan notes will be
repaid in full on 10 April 2005.
(iii) Unsecured bank loans represent funds drawn down under the Company’s current Revolving Credit Facility of £175
million. At the year end £120 million of the facility remains undrawn (2001: £139 million), the facility expires in October
2006. In addition the Group has a bank overdraft facility of £25 million (2001: £25 million) which remained undrawn at
both year ends; this facility is reviewed by the bank on an annual basis.
(iv) The hotel finance lease obligations mature between 31 December 2022 and 23 August 2024.
(v) The amounts due from the Company to subsidiary undertakings are a mixture of interest bearing and non-interest 
bearing loans.
The carrying value of debt at 29 September 2002 secured on fixed assets was £60,913,000 (2001: £59,337,000). NOTES TO THE ACCOUNTS
Continued
46 DE VERE GROUP PLC NOTES TO THE ACCOUNTS
15. Creditors: amounts falling due after more than one year (continued)
Financial Risk Management
An explanation of the Group’s objectives, policies and strategies for the role of derivatives, foreign currencies and other
financial instruments in creating and changing the risks of the Group in its activities can be found on page 15.
Weighted average interest rates applicable to fixed rate and floating rate borrowings and assets were as follows:
2002 2001
£000 % £000 %
Borrowings – fixed rate* 140,067 6.8 120,184 7.0
Borrowings – floating rate 93,525 6.4 97,474 5.6
Long-term debtors – fixed rate (8,415) 6.2 (6,236) 5.2
Cash at bank and in hand – floating rate (5,460) 3.0 (6,372) 3.8
219,717 6.7 205,050 6.5
* The weighted average period for the fixed rate debt is 1.4 years (2001: 1.9 years).
Fixed rate borrowings comprise £109,673,000 (2001: £109,692,000) of 7% Convertible subordinated bonds 2003 and
finance leases repayable by instalments over 2 years. In addition, the Group holds a £10 million interest rate swap at 6.65%
and a £20 million swap at 5.31% fixing the interest rate on an element of the Group’s floating rate borrowings. The amount
of available borrowing facilities at the year end is disclosed in the Financial Review on page 14, which also includes an
assessment of the estimated impact of a change in interest rates on the Group’s results. The weighted average period of
long-term debtors is 7.4 years (2001: 3.0 years).
The interest rate applicable to floating rate debt and cash is determined by reference to LIBOR or Base Rate. All financial
assets and liabilities are denominated in Sterling.
Financial Instruments
Set out below is a year end comparison of current and book values of the Group’s financial instruments by category. Short-
term debtors and creditors have been excluded as permitted by FRS 13. Where available, market values have been used to
determine fair values. Where market values are not available, fair values have been calculated for interest swap contracts
using appropriate pricing models.
2002 2002 2001 2001
Book Value Fair Value Book Value Fair Value
£000 £000 £000 £000
Investments (6,804) (6,994) (6,531) (6,884)
Cash at bank and in hand (at floating rate based on LIBOR) (5,460) (5,460) (6,372) (6,372)
Short-term loans, bank overdrafts, and finance leases 118,779 119,465 13,956 13,956
Long-term borrowings 114,813 115,745 203,702 204,876
Long-term debtors – interest bearing (up to 10 years) (8,415) (8,415) (6,236) (6,236)
Other long-term creditors – non-interest bearing** 2,500 2,500 12,634 11,884
Interest rate contracts – positive fair values –– ––
– negative fair values
†
– 1,210 – 289
** The weighted average period of other long-term creditors is 1.2 years (2001: 1.5 years).
†
The unrecognised losses on the interest rate contracts disclosed in the table above will be recognised over 7.5 years (2001: 1.5 years). NOTES TO THE ACCOUNTS
Continued
NOTES TO THE ACCOUNTS ANNUAL REPORT & ACCOUNTS 2002 47
16. Provision for Liabilities and Charges
Deferred 2002
tax Property total
£000 £000 £000
Group
At 30 September 2001 – 10,597 10,597
Prior year adjustment 1,259 – 1,259
At 30 September 2001 – restated 1,259 10,597 11,856
Utilised during the year – (1,205) (1,205)
Created during the year 11,003 – 11,003
At 29 September 2002 12,262 9,392 21,654
Company
At 30 September 2001 – 4,447 4,447
Utilised during the year – (29) (29)
At 29 September 2002 – 4,418 4,418
The property provision represents rents payable and allowance for delapidations on vacant leasehold properties. The property
provisions remaining at 29 September 2002 are expected to be utilised over the next four years. 
An analysis of the provision for deferred tax is given in Note 18.
17. Pensions
a) Pensions 
The Group operates a contracted-out defined benefit scheme, The Greenalls Group Pension & Life Assurance Scheme (the
Scheme), the assets of which are held in a separate trustee administered fund. The Scheme is now closed to new members.
Contributions are paid into the Scheme in accordance with the recommendations of an independent actuary on the basis of
triennial valuations. The latest formal actuarial triennial valuation was carried out on 5 April 2000. This disclosed that the
value of the Scheme’s assets totalled £203 million at market value which represented 79% of the benefits that had accrued
to members, after allowing for expected future increases in earnings. The liabilities were valued on a market-related projected
unit basis, under this basis the current service cost will increase as the members of the scheme approach retirement.
Following the disposal of the Pubs & Restaurants business in December 1999, and based on subsequent advice from the
Group’s actuaries, the Group undertook to improve the funding level of the ongoing scheme by contributing an additional
£40 million to the Scheme payable over a four year period. As the additional contribution requirement arose from the
significant reduction in Scheme membership a liability was recorded immediately. At the year end £27.5 million had been
contributed. The level of contributions required in the future will be reviewed at the next actuarial valuation in March 2003.
The Group also operates a contracted-in defined contribution scheme in which its liabilities are restricted to the level of
contributions paid into the scheme.
The assumptions, which have had the most significant effect on the funding of the Scheme, are set out in the following table:
%
Price inflation 3.00
Pension increases (non-guaranteed minimum pension) 3.00
Return on investments (net of investment costs and expenses) 5.75
Increase in pensionable earnings 4.75 NOTES TO THE ACCOUNTS
Continued
48 DE VERE GROUP PLC NOTES TO THE ACCOUNTS
17. Pensions (continued)
b) Pensions – FRS 17 Retirement Benefits
The valuation used for FRS 17 disclosures has been based on the most recent valuation at 5 April 2000 and updated by
Watson Wyatt LLP to take account of the requirements of FRS 17 in order to assess the liabilities of the scheme at 
29 September 2002. Scheme assets are stated at their market value at 29 September 2002. The following assumptions 
were used to determine the value of the scheme’s liabilities:
2002 2001
% %
Discount rate 5.60 6.20
Inflation rate 2.25 2.50
Increase to deferred benefits during deferment 2.25 2.50
Increases to pensions in payment 3.00 3.00
Salary increases 4.00 4.25
The assets in the scheme and the expected rate of return were:
Long-term rate of return
Value at the year end at the year end
2002 2001 2002 2001
£m £m % %
Equities 55.6 55.9 8.0 7.0
Fixed interest gilts 63.1 61.0 4.5 4.9
Long-dated corporate bonds 66.0 72.8 5.6 6.0
Other 8.5 7.8 3.0 –
Total market value of assets 193.2 197.5
Present value of scheme liabilities (242.6) (227.7)
Deficit in the scheme (49.4) (30.2)
Related deferred tax asset 14.8 9.1
Net pension liability under FRS 17 (34.6) (21.1)
Liability accrued in Group accounts (net of deferred tax)* 8.8 15.8
Deficit (25.8) (5.3)
*Following the adoption of FRS 19 – Deferred Tax, the pension liability accrued in the Group accounts shown in the table above has been
restated net of deferred tax. NOTES TO THE ACCOUNTS
Continued
NOTES TO THE ACCOUNTS ANNUAL REPORT & ACCOUNTS 2002 49
17. Pensions (continued)
2002 Group 2001 Group restated*
£m £m £m £m
Net assets
Group net assets at the year end 562.6 546.1
Pension liability under FRS 17 excluding special contributions 
payable from Group (34.6) (21.1)
Payable from Group (net of deferred tax) 8.8 15.8
Deficit (25.8) (5.3)
Net assets including pension liability 536.8 540.8
Reserves
Profit and loss reserve at the year end 164.6 150.0
Pension liability under FRS 17 excluding special contributions
payable from Group (34.6) (21.1)
Payable from the Group (net of deferred tax) 8.8 15.8
Deficit (25.8) (5.3)
Profit and loss reserve 138.8 144.7
* Prior year figures have been restated to reflect the implementation of FRS 19 – Deferred Tax.
2002
Analysis of the amount charged to operating profit £m
Current service cost 1.1
Past service cost –
Total charged for operating profit 1.1
2002
Analysis of the proforma charge to other finance costs** £m
Expected return on pension scheme assets (11.4)
Interest on pension scheme liabilities 14.1
Net charge to finance costs 2.7
Analysis of the proforma amount recognised in statement of total recognised gains 2002
and losses (‘STRGL ’)** £m
Difference between the expected and actual return on assets 11.0
Experience (gains) and losses arising on the scheme liabilities (2.9)
Changes in assumptions underlying the present value of the scheme liabilities 19.0
Loss recognised in STRGL before adjustment for tax 27.1
** Disclosed on a proforma basis under the transitional rules of FRS 17. NOTES TO THE ACCOUNTS
Continued
50 DE VERE GROUP PLC NOTES TO THE ACCOUNTS
17. Pensions (continued)
Scheme
excluding
accrued Accrued Total
liability liability 2002
Analysis of the movement in deficit in the scheme during the year £m £m £m
Deficit in scheme at start of the year (excluding deferred tax asset) (30.2) 22.5 (7.7)
Current service cost (1.1) – (1.1)
Contributions paid (net of special contributions) 11.7 (10.0) 1.7
Past service costs –– –
Other financial charge (2.7) – (2.7)
Actuarial loss (27.1) – (27.1)
Deficit in scheme at end of the year (excluding deferred tax asset) (49.4) 12.5 (36.9)
2002
History of experience gains and losses £m
Difference between the expected and actual return on assets 11.0
Percentage of scheme assets at end of year 6%
Experience (gains) and losses arising on the scheme liabilities (2.9)
Percentage of scheme liabilities at end of year 2%
Total amount recognised in statement of total recognised (gains) and losses 27.1
Percentage of scheme liabilities at end of year 11%
18. Deferred Taxation
Group Company
2002 2001 2002 2001
£000 £000 £000 £000
restated* restated*
Capital allowances in excess of depreciation (49,458) (43,048) – –
Tax losses carried forward 28,766 30,700 21,487 22,673
Pension provision 3,750 6,750 3,750 6,750
Other timing differences 4,680 4,339 2,103 2,264
Net deferred tax (liability)/asset (12,262) (1,259) 27,340 31,687
Group Company
2002 2001 2002 2001
Reconciliation of the movement in deferred tax £000 £000 £000 £000
(liability)/asset during the year restated* restated*
Net (liability)/asset at start of year (1,259) – 31,687 –
Prior year adjustment – 3,681 – 30,968
(1,259) 3,681 31,687 30,968
Deferred tax (charge)/credit in the profit and 
loss account for the year (Note 7) (11,003) (4,940) (4,347) 719
Net (liability)/asset at end of year (12,262) (1,259) 27,340 31,687
* Prior year figures have been restated to reflect the implementation of FRS 19 – Deferred Tax. NOTES TO THE ACCOUNTS
Continued
NOTES TO THE ACCOUNTS ANNUAL REPORT & ACCOUNTS 2002 51
19. Share Capital
2002 2001
Authorised £000 £000
250,534,997 Ordinary shares of 22 
2
/9 pence each at September 2001 and 2002 55,674 55,674
2002 2001
Allotted, called up and fully paid £000 £000
112,221,822 (2001 – 111,458,260) Ordinary shares of 22 
2
/9 pence each 24,938 24,768
During the year 627,107 Ordinary Shares (2001: 75,443) were issued on the exercise of options under the De Vere Executive
Share Option Scheme at prices ranging between 284 pence and 339 pence. The total cash consideration amounted to
£1,799,772.
The Company issued 132,460 (2001: 16,665) Ordinary shares at prices ranging between 237 pence and 284 pence per share
under the De Vere Sharesave Scheme. The total cash consideration amounted to £339,507.
The Company issued 3,995 Ordinary shares (2001: 603) on the conversion of 7% Convertible subordinated bonds at a price
of 465 pence per share. The carrying value of the 7% Convertible subordinated bonds in the balance sheet were reduced
accordingly.
The 2001 De Vere Group Plc Executive Share Option Scheme (“The 2001 Scheme”)
As at 29 September 2002 options outstanding in respect of grants made under the 2001 Scheme were as follows:
Ordinary
shares Option
Option exercise period under option prices
Up to 21 May 2012 1,483,174 291p-360p
The number of options outstanding at 30 September 2001 was 992,937 at prices ranging between 291 pence and 299 pence.
The De Vere Group Plc Executive Share Option Schemes 1984 and 1995 (“Executive Scheme”)
As at 29 September 2002 options outstanding in respect of grants made under the Executive Scheme were as follows:
Ordinary
shares Option
Option exercise period under option prices
Up to 7 June 2010 2,464,280 284p-579p
The number of options outstanding at 30 September 2001 was 3,746,483 at prices ranging between 284 pence and 579 pence. NOTES TO THE ACCOUNTS
Continued
52 DE VERE GROUP PLC NOTES TO THE ACCOUNTS
19. Share Capital (continued)
The De Vere Sharesave Scheme 1981 and 1995 (“Sharesave Scheme”)
As at 29 September 2002 options outstanding in respect of grants made under the Sharesave Scheme were as follows:
Ordinary
shares Option
Option exercise period under option prices
Up to 1 September 2007 1,135,111 237p-469p
The number of options outstanding at 30 September 2001 was 1,229,420 at prices ranging between 237 pence and 469 pence.
20. Reserves
Profit
Share Revaluation Other and loss
premium reserve reserve account Total
Group £000 £000 £000 £000 £000
At 30 September 2001 329 99,851 271,133 151,247 522,560
Prior year adjustment – – – (1,259) (1,259)
At 30 September 2001 – restated 329 99,851 271,133 149,988 521,301
Premium on options exercised during the year 1,988 – – – 1,988
Realised revaluation surplus – (240) – 240 –
Profit for the period – – – 14,378 14,378
At 29 September 2002 2,317 99,611 271,133 164,606 537,667
At 29 September 2002 the net cumulative amount of goodwill set against reserves was £52.5 million (2001: £52.5 million).
Profit
Share Other and loss
premium reserve account Total
Company £000 £000 £000 £000
At 30 September 2001 329 272,633 122,766 395,728
Prior year adjustment – – 31,687 31,687
At 30 September 2001 – restated 329 272,633 154,453 427,415
Premium on options exercised during the year 1,988 – – 1,988
Profit for the period – – 11,076 11,076
At 29 September 2002 2,317 272,633 165,529 440,479
Comprising:
Distributable –– 165,529 165,529
Non-distributable 2,317 272,633 – 274,950 NOTES TO THE ACCOUNTS
Continued
NOTES TO THE ACCOUNTS ANNUAL REPORT & ACCOUNTS 2002 53
21. Capital Commitments
Group Company
2002 2001 2002 2001
£000 £000 £000 £000
Under contacts 7,680 26,217 31 340
22. Commitments under Operating Leases for the next Financial Year
Group Company
2002 2001 2002 2001
£000 £000 £000 £000
Leases of land and buildings ending:
Within one year – 152 – –
Between one and five years – – – –
After five years 5,804 5,146 – –
5,804 5,298 – –
Other operating leases ending:
Within one year 378 7 – 7
Between one and five years 1,275 838 64 129
After five years 133 133 – –
1,786 978 64 136
23. Contingent Liabilities
The Company has guaranteed the overdrafts of certain subsidiary undertakings/joint ventures which at 29 September 2002
amounted to £56.1 million (2001: £95.2 million). Included within this amount is £2 million (2001: £2 million) related to
joint ventures.
HM Customs & Excise has raised an assessment on the Group in the amount of £7 million plus interest relating to the
operation of the Group’s golf and leisure facilities. The Directors are confident that the grounds for the assessment are
unreasonable and they have appealed. However, in the event that the appeal is not successful, the assessed amount may
ultimately crystallise as a charge.
24. Reconciliation of Operating Profit to Net Cash Inflow from Operating Activities
2002 2001
£000 £000
Operating profit 52,156 43,784
Depreciation 23,186 21,291
Decrease in provision for liabilities (1,205) (418)
Share of net operating (profit)/loss of joint ventures (273) 429
Decrease in stocks 140 5,716
(Increase)/decrease in debtors (4,132) 11,673
Decrease in creditors (659) (30,489)
Net cash inflow from operating activities 69,213 51,986 NOTES TO THE ACCOUNTS
Continued
54 DE VERE GROUP PLC NOTES TO THE ACCOUNTS
25. Reconciliation of Net Cash Flow to Movement in Net Borrowings
2002 2001
£000 £000
Increase/(decrease) in cash 2,966 (56,066)
Cash outflow from movement in borrowings (19,569) (34,339)
Change in net borrowings resulting from cash flows (16,603) (90,405)
Other non-cash adjustments to long-term borrowings (243) (211)
Movement in net borrowings (16,846) (90,616)
Opening net borrowings (211,286) (120,670)
Closing net borrowings (228,132) (211,286)
26. Analysis of Changes in Net Borrowings During the Year
Non-cash
2002 items* Cash flow 2001
£000 £000 £000 £000
Cash at bank and in hand 5,460 – (912) 6,372
Bank overdrafts (875) – 3,878 (4,753)
4,585 – 2,966 1,619
Other short-term borrowings (117,904) (109,673) 972 (9,203)
Long-term borrowings (114,813) 109,430 (20,541) (203,702)
(228,132) (243) (16,603) (211,286)
* Non-cash items includes the reclassification of the 7% Convertible subordinated bonds of £109,673,000 which have been reclassified as short-
term borrowings as they are due to mature in September 2003.
27. Transactions with Related Parties
The Group has made a £1 million non-interest bearing loan to Burnden Leisure plc, the majority shareholder and fellow joint
venture partner in Bolton Whites Hotel Limited (2001: £1 million). The loan is convertible into Ordinary shares in the period
up to and including 31 May 2024, at the option of the Group. If certain conditions are satisfied it is convertible into Ordinary
shares at the option of the borrower up to 31 May 2004. If conversion does not occur the loan is redeemable at par on 
31 May 2024.
As disclosed in Note 11 on page 42, the Group holds a 20% investment in Bolton Whites Hotel Limited, Burnden Leisure plc
holds the remaining 80% of Ordinary share capital. The Group earned management fees of £394,000 during the year (2001:
£303,000) from Bolton Whites Hotel Limited for managing the De Vere Whites Hotel. At the year end, an amount of
£697,000 was due from Bolton Whites Hotel Limited (2001: £303,000) in respect of unpaid management fees. In addition,
an amount of £824,000 was due from Bolton Whites Hotel Limited in respect of operating costs paid on its behalf by the
Group. A further £329,000 has been loaned to the company to finance a refurbishment of the exhibition centre. This loan
attracts interest at a market rate. The Group has guaranteed £2 million (2001: £2 million) of the overdraft facility of Bolton
Whites Hotel Limited. SHAREHOLDER INFORMATION ANNUAL REPORT & ACCOUNTS 2002 55
SHAREHOLDER INFORMATION
Analysis of Ordinary Shareholders
as at 29 September 2002
Number of Shares
Range Shareholders % held %
1 – 500 10,720 65.89 2,086,020 1.86
501 – 1,000 2,568 15.78 1,862,771 1.66
1,001 – 5,000 2,374 14.59 4,758,730 4.24
5,001 – 10,000 215 1.32 1,508,859 1.34
10,001 – 25,000 159 0.98 2,497,724 2.23
25,001 – 50,000 66 0.41 2,351,031 2.09
50,001 – 100,000 48 0.30 3,442,550 3.07
100,001 – 150,000 18 0.11 2,211,105 1.97
150,001 – 500,000 55 0.34 15,129,681 13.48
500,001 – 1,000,000 22 0.13 14,301,516 12.74
1,000,001 – and over 24 0.15 62,071,835 55.32
16,269 100.00 112,221,822 100.00
Shareholder Enquiries/Change of Address
For enquiries relating to holdings of shares of the Company such as the loss of a share certificate, dividend payments, or to
notify a change of address, shareholders should write to the Company’s registrars: Northern Registrars, Northern House,
Woodsome Park, Fenay Bridge, Huddersfield, HD8 0LA. Telephone (01484) 606664, www.northernregistrars.co.uk.
Payment of Dividends to Mandated Accounts
Shareholders who do not currently have their dividends paid directly to a bank or building society account and who wish to
do so should complete a mandate instruction form obtainable from the Company’s registrars, as above. Tax vouchers are sent
to the shareholder’s registered address under this arrangement unless requested otherwise.
Low Cost Stock and Share Dealing Service
Cazenove & Co., the Company’s stockbrokers, operate a low cost stock and share dealing service for Ordinary shares in 
De Vere Group Plc. This provides not only for the sale of stocks and shares at a basic commission of 1% with a £10 minimum
charge, but also for purchases of Ordinary shares. Further information is available from Cazenove & Co., 12 Tokenhouse Yard,
London, EC2R 7AN. Telephone (020) 7606 1768.
Crest: Stock Market Settlement System
The computerised system for settling sales and purchases of shares, CREST, became operational for the Company’s Ordinary
shares in October 1996. It is a voluntary system that enables shareholders, if they wish, to hold and transfer their
shareholdings electronically rather than by paper. Shareholders who wish to retain their certificates are also able to do so.
Electronic Communications with Shareholders
Following recent Government legislation, we now offer our shareholders the option to receive electronic versions of
shareholder communications including the annual and interim reports. Information regarding this service can be downloaded
directly from the corporate website, www.deveregroupplc.co.uk. 56 DE VERE GROUP PLC ADVISERS TO DE VERE GROUP PLC
ADVISERS TO DE VERE GROUP PLC
Company Secretary and 
Registered Office:
Company Secretary
Mr David Charles Edwards LL.B
Registered Office
2100 Daresbury Park
Daresbury
Warrington, WA4 4BP
Registered in England No. 14504C
Tel: (01928) 712111
www.deveregroupplc.co.uk
Registrars and Transfers Office
for shareholders, debenture and 
loan stockholders:
Northern Registrars 
Northern House, Woodsome Park
Fenay Bridge
Huddersfield, HD8 0LA
Tel: (01484) 606664
www.northernregistrars.co.uk 
Principal Paying and Conversion
Agent and Registrar
for registered bondholders:
The Chase Manhattan Bank N.A.
Trinity Tower
9 Thomas More Street
London, E1 9YT
Paying and Conversion Agent
for bearer bondholders:
Chase Manhattan Bank Luxembourg SA
5 Rue Plaetis
L-2338, Luxembourg Grund.
Advisers to De Vere Group Plc:
Stockbrokers:
Cazenove & Co
12 Tokenhouse Yard
London, EC2R 7AN
Tel: (020) 7606 1768
Credit Suisse First Boston de Zoete & 
Bevan Limited
20 Columbus Courtyard
London, E14 4DA 
Financial Advisers
Close Brothers Corporate Finance
10 Crowne Place
Clifton Street
London, EC2A 4FT
Principal Bankers
National Westminster Bank plc
23 Sankey Street
Warrington, WA1 1XH
Auditors
Ernst & Young LLP
100 Barbirolli Square
Manchester, M2 3EY
Solicitors
Freshfields
65 Fleet Street
London, EC4Y 1HS
Financial Calendar
Annual General Meeting 14 February 2003
Payment of Final Dividend 21 February 2003
Announcement of Interim Results May 2003
Payment of Interim Dividend July 2003
Preliminary Announcement of Annual Results December 2003
Designed & produced by                           www.forepoint.co.uk
Principal photography: Ric Gemmell
Printed by: Triangle Limited
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PROPERTY LOCATIONS
PROPERTY LOCATIONS ANNUAL REPORT & ACCOUNTS 2002 3 57
De Vere Hotels:
1. De Vere Cameron House
Loch Lomond
2. De Vere Slaley Hall
Hexham
3. De Vere Oulton Hall
Leeds
4. De Vere Herons’ Reach
Blackpool
5. De Vere Whites
Bolton
6. De Vere Daresbury Park
Warrington
7. De Vere Mottram Hall
Prestbury, Manchester
8. De Vere St. David’s Park
Chester
9. De Vere Carden Park
Nr. Chester
10. The De Vere Belfry
Wishaw
11. De Vere Belton Woods
Nr. Grantham
12. De Vere Dunston Hall
Norwich
13. De Vere University Arms
Cambridge
14. De Vere Swindon
Swindon
15. De Vere Bellhouse
Beaconsfield
16. De Vere Cavendish St. James’s,
London
17. The De Vere Grand, Brighton
18. De Vere Grand Harbour
Southampton
19. De Vere Royal Bath
Bournemouth
20. De Vere Dormy
Ferndown, Bournemouth
21. De Vere Grand, Jersey
St. Helier
De Vere Associate Hotels:
1. Lakeside Hotel
Newby Bridge
2. The Vale, Golf & Country Club
Vale of Glamorgan
3. Down Hall Country House Hotel 
Hatfield Heath, Bishop’s Stortford
4. Sopwell House
St Albans
5. Flemings Mayfair
London
6. Five Lakes Hotel, Golf, Country 
Club & Spa, Maldon
7. Hastings Slieve Donard Hotel
Newcastle, County Down
8. Hastings Culloden Hotel
Holywood, Belfast
9. Hastings Ballygally Castle Hotel  
Ballygally, County Antrim
10. Hastings Stormont Hotel
Belfast
11. Hastings Everglades Hotel
Londonderry
12. Hastings Europa Hotel
Belfast
Village Hotels & Leisure Clubs:
1. Village Leeds
2. Village Bury
3. Village Prestwich
4. Village Hyde
5. Village Cheadle
6. Village Warrington
7. Village Bromborough
8. Village Whiston
9. Village Nottingham
10. Village Dudley
11. Village Coventry
12. Village Cardiff
13. Village Swindon
14. Village Newcastle
Greens Health & Fitness:
1. Greens Cambridge
2. Greens Croydon
3. Greens Birmingham
4. Greens Wakefield
5. Greens Sheffield
6. Greens Stoke on Trent
7. Greens Liverpool
8. Greens Norwich
9. Greens Glasgow
10. Greens Edinburgh 
11. Greens Chingford
12. Greens Gosforth
13. Greens Shipley
14. Greens Leicester
15. Greens Glasgow Giffnock
Opening December 2002
De Vere Hotels
De Vere Associate Hotels
Village Hotels & Leisure Clubs
Greens Health & Fitness De Vere Group Plc
2100 Daresbury Park, Warrington, 
Cheshire, WA4 4BP
www.deveregroupplc.co.uk
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