A leading provider of
foreign exchange and
related financial services
The 4Less Group plc
Annual Report & Accounts
for the year ended 31 March 2004
knowledge
experience
quality
service
reputation
commitment The 4Less Group is a leading provider of financial services for
corporate and private customers, linked principally to asset and
currency purchases. Our innovative products are backed by a team
of attentive and high quality specialist staff. We are committed to
delivering attractive returns for customers and investors.
The Group has its headquarters in Central London with a branch
office in Marbella; it is listed on AIM, a market regulated by the
London Stock Exchange.
Our History
March 2000
Group commences trading… 
as www.currencies4less.com
providing a foreign exchange service
as an alternative to the UK clearing
banks. This follows the publication
of the Cruickshank Report which
criticised banks’ high charges and
low levels of customer support.
November 2000
Secures investment… 
of £200,000 from a number of
private investors. These funds
are used to upgrade IT and
back office facilities to ensure
highest level of customer
service and support.
June 2002
Group’s shares
admitted to OFEX…
July 2003
Opens a branch sales and 
marketing office…
in Marbella to provide a local
service to its fast growing
customer base in the region. 01 The 4Less Group plc Annual Report & Accounts 2004
Highlights
Contents
01 Highlights
02 At a Glance
04 Chairman’s Statement
06 Chief Executive Officer’s Review
08 Directors and Advisers
10 Report of the Directors
12 Corporate Governance Statement
14 Independent Auditors’ Report
15 Consolidated Profit and Loss Account
15 Consolidated Statement of Total Recognised 
Gains and Losses
16 Consolidated Balance Sheet
17 Company Balance Sheet
18 Consolidated Cash Flow Statement
19 Notes to the Consolidated Financial Statements
September 2004
Launch of …
FLG Corporate Services and FLG
Insurance Brokers targeting
corporate and retail customers.
April 2004
Moves to AIM…
and raises £1.3 million after
expenses through placing of 
new shares at 60p. The funds 
are being used to support new
Group initiatives.
October 2003
Management team
strengthened… 
with appointment of Chief Operating
Officer and Group Finance Director.
Group moves to larger premises in
Central London to accommodate fast
expanding workforce which now
numbers over 40. 
• Gross profit rises 55% to £2.904 million
(2003: £1.874 million)
• Profit before tax increases 176%
to £297 ,921 (2003: £107,626)
• Gross turnover reaches £319.2 million, 
up 17% (2003: £271.9 million)
• Strong balance sheet with £1.3 million
in cash, following placing in April 2004 
• Significant new product launches to retail
and corporate markets 02 The 4Less Group plc Annual Report & Accounts 2004
The 4Less Group > At a Glance
The Group provides a range of financial services for corporate and
private customers. The common thread linking all our businesses is a
commitment to the highest levels of professionalism, customer service
and attention to detail. Satisfied customers are our greatest asset and
most effective advertisement; over 30 per cent of our business comes
from recommendations or referrals. 
Currencies4Less is the core
business activity of the Group
providing a specialist foreign
exchange service, principally for
retail customers. Currencies4Less
offers competitive exchange rates,
high levels of customer service,
detailed market information and
spot and forward contracts. 
Key features:
> Specialist dealers
> Expert assistance 
> Competitive rates
> Low minimum amount
> No commission
> No hidden charges
PropertyFinance4Less acts as
an independent broker arranging
overseas mortgages for customers.
There are now over one million
UK nationals owning property
abroad principally in France, Italy,
Portugal, Spain and the United
States. The business assists
buyers to obtain a foreign currency
mortgage for their overseas
property purchase. 
Key features:
> Multi lingual staff with 
local knowledge
> Extensive contacts with banks
and mortgage lenders
> Many years of experience
> Access to a wide range of
financing products, options 
and exclusives 
> No hidden charges 03 The 4Less Group plc Annual Report & Accounts 2004
Car-Finance4Less is one of the
UK’s leading alternatives to
showroom finance. The business
provides competitive finance
packages for customers buying
vehicles in the UK or abroad.
Since its inception three years
ago, Car-Finance4Less has
become a leading player in offering
tailored finance packages.
Key features:
> UK or overseas purchases
> New or used vehicles
> Private or fleet buyers
> Specialist advisors with industry
experience
> Customised financing solutions
FLG Corporate Services provides
bespoke financial services to
business customers requiring
customised funding packages to
support their trading activities and
growth ambitions. Corporate
Services will undertake foreign
exchange transactions, arrange
asset and trade finance facilities
and debt financing, with particular
emphasis on companies with
turnover broadly in the range 
£1 million to £100 million.
Key features:
> Personal attention
> Industry specialists
> Skilled corporate bankers with
established track record
> Bespoke structured finance
packages
> Covers international and 
domestic trade
FLG Insurance Brokers provides a
range of products for owners of
property overseas including house
and contents insurance and
mortgage protection, critical
illness, health and travel insurance.
It also provides corporate
customers with credit insurance,
marine cargo & transit cover,
liability insurance and personal
indemnity cover. The Company 
can undertake insurance ‘health
checks’ to ensure a business has
the right cover in place.
Key features:
> Personal and business cover
> Specialises in overseas property
> Underwritten by well known
insurers including Lloyds
> Audit of existing cover available
> Member of the General
Insurance Standards Council 04 The 4Less Group plc Annual Report & Accounts 2004
Chairman’s Statement > Eric Peacock 
“Demand for our services remains strong and the level of
interest in our new products, both retail and commercial, 
is encouraging.”
This advance was strengthened shortly
after the year end with the Group’s listing
on AIM on 15 April 2004 when we raised
£1.3 million (after expenses). These 
funds are being used to provide working
capital and support for two new initiatives
targeted at the business finance and
insurance markets. 
Performance
Gross turnover for the 12 months to 
31 March 2004 was £319.2 million
generating a gross profit of £2.9 million.
This represents an increase in gross profit
of 55% over the 2003 result. Margins
improved from 0.73% to 0.81% in our
core currencies business while the Group
profit on ordinary activities before tax of
£298,000 was a rise of 176% on the
previous year. This result was slightly
ahead of the forecast for profit before 
tax of £290,000 issued at the time of the
AIM listing and placing. The Group has
ample cash resources to fund its planned
activities. The move to AIM gives the
Group increased visibility and raises its
profile with investors and in its industry
sector, while also helping to build a
broader shareholder base and greater
liquidity in the stock.
Prior Period Adjustment
The accounts include a prior period
adjustment to correct understatements 
of trade debtors and trade creditors
contained in the balance sheet at 
31 March 2002. The effect on net
assets is £232,000 after taxation. 
Introduction
The year under review has been very
successful for The 4Less Group plc.
Business volumes grew strongly while the
Group took significant steps to further
develop its position as one of the leading
providers of foreign exchange and other
financial services to retail and corporate
clients both in the UK and overseas.  05 The 4Less Group plc Annual Report & Accounts 2004
“I have been greatly impressed by the quality and
professionalism demonstrated by staff at all levels.”
The net assets at 31 March 2004,
adjusted for the net proceeds of the
flotation and the prior period adjustment
are £1.7 million. The understatements
relate wholly to the two years ended 
31 March 2002, the first two years of
trading. Since 31 March 2002, the
Group’s management and its financial
and accounting systems have been
significantly strengthened and we are
satisfied that the Group’s systems and
internal controls are robust. 
Board
In October 2003, the Board was
strengthened through the appointment 
of Greg Begley as Chief Operating Officer
and Nigel Paul as Finance Director who
both have many years of experience in
banking and finance. I joined the Board in
March 2004, prior to the move to AIM.
People
The number of people in the Group has
grown significantly during the year. I have
been greatly impressed by the quality and
professionalism demonstrated by staff
at all levels. The Group places strong
emphasis on training and is committed
to the on-going development of its staff.
I would like to thank everyone associated
with the Group for their commitment, hard
work and above all, enthusiasm. 
Outlook
The year has started well; demand for our
services remains strong and the level of
interest in our new products, both retail
and commercial, is encouraging. Trading
conditions in our key markets are buoyant
and we look forward with confidence.
Eric Peacock CMG DL
16 September 2004 06 The 4Less Group plc Annual Report & Accounts 2004
Chief Executive Officer’s Review > Charles McLeod
“The Group has come a long way in a short time. The management
team is determined to continue to grow the business in a controlled
manner without curbing the entrepreneurial drive and enthusiasm,
which is so important in a fast developing operation.” 
Introduction
The year to 31 March 2004 has been
productive in terms of business
performance and also seen considerable
change as we have taken major steps 
in positioning the Group for future
development.
We continued to broaden our customer
base with new client registrations
increasing by 37% over the year. Our
Spanish office directly serves the
extensive and important business
relationships we have in that country. 
The management team was
strengthened in October 2003 by the
appointment of Greg Begley as Chief
Operating Officer and Nigel Paul as
Finance Director. Immediately following
the year under review the Group moved
its listing from OFEX to AIM, raising 
£1.7 million gross (£1.3 million net) for the
purposes of developing the infrastructure
of the Group, expanding the existing
operations especially into the corporate
arena, and to support increased foreign
exchange lines with our bankers.
A key part of the development of the
infrastructure of the Group has been 
our commitment to regulation and
compliance with Anti Money Laundering
and Proceeds of Crime legislation. We
continue to develop our internal control
and client registration systems, and 
work closely with external specialist
consultants to ensure staff are aware of
the changing legislation and adequately
trained. We have also expanded our
back office infrastructure in line with
the growth in the number of foreign
currency transactions. 
Our Property Finance division is now 
FSA authorised to conduct mortgage
business, and FLG Insurance Brokers
Limited, our insurance subsidiary is a
member of the General Insurance
Standards Council and has completed
the process of applying for FSA
registration which comes into force 
in January 2005.
We constantly listen to the requirements
of our clients and as a result of great
demand we have created International
Equity Release. This product, which is
available from banks in France, Portugal
and Spain, will allow UK residents with
unencumbered properties in these
countries to take out Euro mortgages
secured on their overseas property. 
At present this facility is not generally
available in these countries and is only
available through PropertyFinance4Less.
With over one million UK nationals
owning properties in Europe and this
number is expected to grow by a further
two million over the next five years, the
prospects for the business are good.
We have developed the infrastructure 
and recruited high calibre staff for our
new FLG Corporate Services division
which acting as broker, assists in
arranging bespoke trade and asset
finance products from a wide range 
of financial institutions. This business 
is now ready to formally launch its
products and services. 07 The 4Less Group plc Annual Report & Accounts 2004
Trading Review
The Group continued to develop its
trading base during the year. The major
contributors were our foreign currency
and overseas mortgages divisions. The
referrals now coming through the overseas
mortgage division have led to the Group
setting up an insurance broking operation
to service the substantial demand for
insurance cover for overseas properties.
The Group commenced trading in March
2000 as a foreign currency exchange
service providing an alternative to the 
UK Clearing Banks, whose high charges
and low levels of customer support had
just been severely criticised in the
Cruickshank Report. Today in addition 
to currency services the Group provides
a range of lending and insurance
products for the consumer and business
market. The Group’s rapid growth has
resulted from focusing on outstanding
customer service backed by people with
the requisite skills to fulfil our clients’
needs. We do not take principal risk on
any of our lending products or facilitate
speculative currency transactions. The
number of fully registered customers has
grown through personal recommendation,
targeted marketing and innovative use of
the internet. This has been further boosted
by reciprocal referral relationships with
overseas property agents and a number
of UK-based car dealerships. The client
base is now in excess of 20,000.
Satisfied customers are our greatest
asset and most effective advertisement.
We are encouraged that over 30% of our
business comes from recommendations
or referrals. Our large customer base 
of high net worth individuals expect
excellence and we are constantly looking
at ways of developing new products
which we believe they will find attractive. 
Currencies4Less is our principal business
activity and accounted for over 99.8% 
of Group sales and profit in the year
under review. We expect this business 
to continue to grow strongly although as
a proportion of the whole Group it will
gradually reduce as the other businesses,
including the new corporate operations,
become more established.
PropertyFinance4Less had a good 
year boosted by the continuing strong
demand from UK citizens for homes
overseas. There are now over one million
UK nationals owning property abroad,
principally in France, Italy, Portugal and
Spain and demand in other countries,
including the USA, is also buoyant. This
trend is expected to continue and we can
now benefit significantly from the high level
of requests we have received for insurance
cover through our newly established FLG
Insurance Brokers subsidiary.
Car-Finance4Less was formed to arrange
financing for clients wishing to purchase
cars abroad. However as the financial
benefit of importing cars has gradually
diminished, this business now focuses 
on building referral relationships with the
larger independent dealerships who
operate mainly in the quality brands market.
The business is making steady progress
in offering competitive financial products
aimed at higher value cars for personal use.
FLG Insurance Brokers has recently
commenced trading. We are excited
about the prospects for this business
whose products span both the consumer
and corporate markets. The business
provides a range of insurance products
for property owners overseas including
house and contents insurance, mortgage
linked life/protection assurance, critical
illness, health and travel insurance. It also
provides corporate customers with credit
insurance, bonds, liability insurance and
personal indemnity cover. Early signs 
are encouraging and with the additional
benefit of annual renewal premiums, the
outlook for the business is positive and 
it should provide a stable and growing
income stream to the Group.
FLG Corporate Services has also 
only recently commenced trading. This
division provides financial services to
business customers requiring customised
funding packages to support their
existing trading activities and growth
ambitions. The division will arrange asset
and trade finance facilities and 
debt financing, with particular emphasis
on companies with a turnover broadly 
in the range £1 million to £100 million. 
Our Corporate Services team has long
experience in this market and over the
years has built a wide network of
business contacts and commercial
relationships. We are excited by the
opportunities in this market and are
particularly encouraged by our discussions
with the larger financial institutions that
provide the financing to our clients. It is
early days but the feedback we have
received suggests that this business has
a bright future. 
Corporate Identity
We have recently introduced a new
corporate identity and have redesigned
our Group web site in order to provide
more information for investors and others
interested in our Company. This new
style will be adopted Group wide. 
Looking Forward
The Group has come a long way in a
short time. The management team is
determined to continue to grow the
business in a controlled manner without
curbing the entrepreneurial drive and
enthusiasm, which is so important in a
fast developing operation. Looking to the
future we aim to reinforce our strong
organic growth with acquisitions that
support and complement our existing
businesses. We are proud of what has
been achieved but not complacent about
the challenges that lie ahead.
Charles McLeod
16 September 2004 08 The 4Less Group plc Annual Report & Accounts 2004
Directors and Advisers
Eric Peacock CMG DL (aged 59)
Non-executive Chairman
Eric is currently the chief executive officer
of Exemplas Holdings Limited. His
previous experience includes Chairman
and chief executive officer in a range of
international businesses including
Babygro plc, divisional chief executive
officer of Hollis International plc and
managing Director of Barbour Limited. He
has international business development
experience in over 80 countries and in
2003 he received The Most Distinguished
Order of St Michael & St George for
Services to International Trade.
Charles McLeod (aged 42)
Chief executive officer
Charles began his career at Lloyds of
London in 1980, with Burgoyne Alford as
a non-marine insurance broker. He then
worked for Lockwood, Hughes and
Walsh Limited, a commodities broker in
London, leaving in 1987 to establish his
own property development company,
which he ran for 12 years before
returning to the financial services industry
in 1999 as senior trader for Currencies
Direct Limited. In March 2000 he
established the Group and now has
overall responsibility for sales, the
management team and the development
of strategic relationships. 
1 Greg Begley MBA (aged 57) 
Chief operating officer
Greg is a member of the Institute of
Bankers and Institute of Marketing and
has spent most of his career with the
Bank of Ireland Group. He was head of
the bank’s Business Centre in Berkeley
Square which focused on the high net
worth sector and later became head of
trade finance in the UK. He joined 4Less
in October 2003 and is responsible for
running the Group’s day-to-day
operations. 
2 Nigel Paul FCA (aged 48)
Group finance Director
After qualifying as a chartered
accountant, Nigel specialised in
corporate recovery, corporate
reconstruction and general audit and
taxation. He joined 4Less in October
2003 and is responsible for the Group’s
financial and administrative affairs. 
12
34 09 The 4Less Group plc Annual Report & Accounts 2004
3 Timothy Sullivan (aged 44)
Managing Director, Currencies4Less 
Tim worked as a senior manager from
1989 to 2000, specifically with Lancaster
Group, Synter and Clive Sutton. In late
1999 he joined Currencies Direct Limited,
specialising in the car import market
before joining the Group in May 2000. He
is responsible for the day-to-day running
of Currencies4Less.
4 James Corsellis (aged 34)
Non-executive Director
James was educated at Oxford Brookes
University, La Sorbonne in Paris and
London University. He is currently a
Director of Marwyn Investment
Management Limited, a UK based
investment business which has worked
with the Group.
Registered Office
160 Brompton Road
London
SW3 1HW
Nominated Adviser and Broker
Corporate Synergy plc 
12 Nicholas Lane
London
EC4N 7BN
Solicitors to the Company
Mishcon de Reya
Summit House
12 Red Lion Square
London
WC1R 4QD
Auditors
PKF 
Farringdon Place
20 Farringdon Road
London
EC1M 3AP
Registrars and Receiving Agents
Neville Registrars Ltd
Neville House
18 Laurel Lane
Halesowen
West Midlands
B63 3DA
Principal Bankers
Bank of Ireland 
36 Queen Street
London
EC4R 1HJ Report of the Directors
Year ended 31 March 2004
The Directors present their report together with consolidated financial statements for the year ended 31 March 2004.
Principal Activities
The principal activities of the Group are the provision of foreign currency exchange and related finance products, and the
arrangement of overseas mortgages and finance for the acquisition of motor vehicles. The principal activity of the Company
is the provision of foreign currency exchange.
Results and Dividends
The Group’s profit for the financial year, after taxation, was £201,769. The trading results for the year, and the Group’s and
Company’s financial position at the end of the year are shown in the attached financial statements.
The Directors have not recommended the payment of a dividend.
Business Review
An overall review of the business and indications of likely future developments is given in the Chairman’s and Chief Executive’s reports. 
Directors
The Directors who held office during the year are set out below.
The following table shows the beneficial interests of the Directors in the shares of the Company at 31 March 2004 and at 
31 March 2003, or their appointment to the Board if later, together with their salaries and fees.
Ordinary Shares 
Salary and Fees of £0.01 each
2004 2003 2004 2003
£ £ Number Number
William Eric Peacock (appointed 11 March 2004)* – – – –
Charles McLeod 85,000 85,000 3,260,662 3,827,002
Greg Begley (appointed 1 October 2003) 44,000 – – –
Nigel Paul (appointed 1 October 2003) 44,000 – – –
Timothy Sullivan 75,000 75,000 48,330 25,000
James Corsellis* 13,500 31,375 – –
Bertrand Picot (resigned 11 March 2004) 75,000 75,000 – 257,500
*Non-executive and member of the Audit Committee and the Remuneration Committee. 
James Corsellis holds 155,713 warrants which may be converted for 60p per share until 26 June 2007. Marwyn Investments Limited a company of which he is a
Director also holds 311,247 warrants which may be converted at 28p per share. Subsequent to the year end, the Company has granted options and warrants as
detailed in note 17. 
The Company’s registers indicate that the number of ordinary shares of 1p each held by Directors as at 14 September 2004 are William Eric Peacock – nil, 
Charles McLeod – 2,860,662, Greg Begley – 41,666, Nigel Paul – 41,666, Timothy Sullivan – 48,330, James Corsellis – nil.
Directors’ Responsibilities for the Financial Statements
United Kingdom company law requires the Directors to prepare financial statements for each financial year which give a true and
fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing
those financial statements the Directors are required to:
> select suitable accounting policies and then apply them consistently;
> make judgements and estimates that are reasonable and prudent;
> state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained
in the financial statements; and 
> prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for maintaining proper accounting records, for safeguarding the assets of the Group and for taking
reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for ensuring that the Report of the Directors and other information included in the Annual Report is
prepared in accordance with company law in the United Kingdom.
10 The 4Less Group plc Annual Report & Accounts 2004 The maintenance and integrity of The 4Less Group Plc web site is the responsibility of the directors; the work carried out by the
auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes
that may have occurred to the financial statements since they were initially presented on the web site. 
Legislation in the United Kingdom governing the preparation and dissemination of the financial statements and other information
included in annual reports may differ from legislation in other jurisdictions.
Payment Policy
The policy for the Group is to agree the terms of payment with suppliers on an individual basis at the time of entering the
transaction. At the year end trade creditors were on average 25 days (2003: 24 days).
Transition to International Financial Reporting Standards (IFRS)
The Group is in the process of preparing to convert to IFRS in time for application to the 2006 results. A project team has been
established to identify the effects of differences between UK GAAP and IFRS. This process is currently ongoing and will continue
as new standards and amendments to existing standards evolve. During the year ending 31 March 2005 the Group will begin to
run a separate internal IFRS financial reporting consolidation.
Disabled Employees
Applications for employment by disabled persons are fully considered, bearing in mind the aptitudes of the applicant concerned. In
the event of members of staff becoming disabled, every effort is made to ensure that their employment with the Group continues
and that appropriate training is arranged. It is the policy of the Group that the training, career development and promotion of
disabled persons should, as far as possible, be identical to that of other employees.
Employee Information and Consultation
The Group continues to involve its staff in the future development of the business. Information is provided to employees by regular
briefing meetings. 
The Group operates a Group Stakeholder Pension Plan available to all employees.
Going Concern
After making enquiries, the Directors have formed a judgement that there is reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future. For this reason, the Directors continue to adopt the going
concern basis in preparing the financial statements.
Post Balance Sheet Events
On 15 April 2004, the Company floated and was admitted to AIM and raised £1.7m (before expenses) via the issue of 2,833,333
ordinary shares of 1p each at a price of 60p each. Further details are provided in Note 17.
Auditors
PKF offer themselves for reappointment as auditors in accordance with section 385 of the Companies Act 1985. 
On behalf of the Board
Nigel Paul
Secretary
16 September 2004
11 The 4Less Group plc Annual Report & Accounts 2004 Corporate Governance Statement
Year ended 31 March 2004
Introduction
The Board of The 4Less Group plc is committed to achieving good standards of corporate governance, integrity and business
ethics for all activities. Under the rules of AIM, the Group is not required to comply with the Combined Code. However, the Group
has taken steps to comply with the Combined Code in so far as it can be applied practically, given the size of the Group and the
nature of its operations.
Audit Committee
The Audit Committee consists of the non-executive Directors with Eric Peacock as Chairman. The committee will meet at least
twice a year, linked to the timing of the publication of the Group’s results. The committee will also meet on an ad hoc basis when
necessary. The external auditors may also be invited to attend these meetings.
The committee operates within specific terms of reference which include: 
> considering the appointment of external and internal auditors;
> reviewing the relationship with external auditors;
> reviewing the financial reporting and internal control procedures;
> reviewing the management of financial matters and focusing upon the independence and objectivity of the external auditors; and
> reviewing the consistency of accounting policies both on a year to year basis and across the Group.
Remuneration Committee
The Remuneration Committee consists of the non-executive Directors with Eric Peacock as Chairman.
The Chief Executive Officer of the Company, Charles McLeod, may also be invited to attend certain meetings of the Remuneration
Committee.
Role of the Remuneration Committee
The Remuneration Committee reviews and determines on behalf of the Board and shareholders of the Company the pay, benefits
and other terms of service of the executive Directors of the Company and the broad pay strategy with respect to senior Company
employees.
Transitional Period and Establishment of the Remuneration Committee
The Company became an AIM-listed company on 15 April 2004. In view of this timing the Remuneration Committee has
considered the remuneration policy for the current year.
Best Practice
As the Company is AIM-listed, the Company is not legally required to set out its remuneration policy but is doing so on a voluntary
basis. To the extent that such principles are relevant to the current circumstances of the Company, the provisions of inter alia the
Directors’ Remuneration Report Regulations 2002 and the Combined Code are taken into account. 
Remuneration Policy
The objective of the Company’s remuneration policy is to provide remuneration in a form and amount to attract, retain and motivate
high quality management.
The remuneration policy of the Company has four principal components:
Basic Salaries
Basic Salaries are determined by the Remuneration Committee bearing in mind the salaries paid in AIM-listed and other similar
companies. Within that frame of reference, it is intended that pay should be at the mid-market rate.
12 The 4Less Group plc Annual Report & Accounts 2004 Bonuses 
Bonuses are payable according to the achievement by the Company of certain pre-determined Company targets including
earnings and development milestones. The level of bonuses payable on achievement of the targets is set at the level to provide 
the necessary incentives for executive Directors and senior managers. There are appropriate adjustments to the bonus payable 
in the event of over or under-achievement of the Company against those targets. 
Share Option Scheme 
At the Annual General Meeting held on 27 February 2004, shareholders approved the creation of The 4Less Group plc 2004
Enterprise Management Incentive Plan (‘the EMI Plan’).
The EMI Plan will be operated by the Board (acting where appropriate, through the Remuneration Committee). Options granted
under the EMI Plan should qualify for favourable tax treatment provided various conditions set out in the Income Tax (Earnings 
and Pensions) Act 2003 are met.
Any employee or Director of the Group who works at least 25 hours per week for the Group or who spends at least 75 per cent 
of his working time for the Group will be eligible to participate in the EMI Plan at the discretion of the Board.
Employee Benefit Trust 
At the Annual General Meeting held on 27 February 2004 shareholder approval was obtained for the creation of The 4Less Group
2004 Employee Settlement (‘the EBT’).
The EBT is a discretionary trust capable of benefiting all employees and former employees of the Company and its subsidiaries
and certain of their dependants. The trustees are Dominion Employment Benefit Trustees Limited based in Jersey. The trustees 
of the EBT are entirely independent of the Company. The Company cannot give any instructions to the trustees but can make
recommendations to them.
The Company has made an initial contribution of £100 to the trustees and may make further contributions to the trustees from
time to time.
Pensions  
The Group provides a stakeholder pension scheme for all employees. No contributions are made by the Company to the scheme.
Directors’ Remuneration
The particulars of the remuneration of the Directors and their interests are as set out in the Report of the Directors.
Directors’ Service Contracts 
All executive Directors are employed under service contracts. The services of Charles McLeod may be terminated by a maximum
of 12 months notice by the Company or the Executive. The services of the other executive Directors may be terminated by a
maximum of six months notice.
13 The 4Less Group plc Annual Report & Accounts 2004 Independent Auditors’ Report to the Members 
of The 4Less Group plc
Year ended 31 March 2004
We have audited the financial statements of The 4Less Group plc for the year ended 31 March 2004 which comprise the
Consolidated Profit and Loss Account, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Cash
Flow Statement, the Consolidated Statement of Total Recognised Gains and Losses and the related notes. These financial
statements have been prepared under the accounting policies set out therein.
This report is made solely to the Company's members, as a body, in accordance with Section 235 of the Companies Act 1985.
Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state 
to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, 
or for the opinions we have formed.
Respective Responsibilities of Directors and Auditors
The Directors' responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law 
and United Kingdom Accounting Standards are set out in the Report of the Directors.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United
Kingdom Auditing Standards. 
We report to you our opinion as to whether the financial statements 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 Report of the Directors is not consistent
with the financial statements, if the Company has not kept proper accounting records, if we have not received all the information
and explanations we require for our audit, or if information specified by law regarding Directors' remuneration and transactions 
with the Company and other members of the Group is not disclosed.
We read other information contained in the Annual Report and consider whether it is consistent with the audited financial statements.
This other information comprises only the Report of the Directors, the Chairman's Statement, the Chief Executive Officer’s Review
and the Corporate Governance Statement. We consider the implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.
Basis of Audit Opinion
We conducted our audit in accordance with United Kingdom 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 financial statements. It also
includes an assessment of the significant estimates and judgments made by the Directors in the preparation of the financial
statements, and of whether the accounting policies are appropriate in 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 financial statements are free from material
misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy
of the presentation of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair view of the state of the Group's and the Company's affairs as at 
31 March 2004 and of the Group's profit for the year then ended and have been properly prepared in accordance with the
Companies Act 1985.
PKF
Registered Auditors 
London, UK
16 September 2004
14 The 4Less Group plc Annual Report & Accounts 2004 Consolidated Profit and Loss Account
Year ended 31 March 2004
2004 2003
Notes £ £
Turnover 2 319,169,452 271,862,416
Cost of sales (316,264,498) (269,987,866)
Gross profit 2,904,954 1,874,550
Administrative expenses (2,736,518) (1,860,202)
Operating profit 3 168,436 14,348
Interest receivable and similar income 6 133,496 95,395
Interest payable and similar charges 7 (4,011) (2,117)
Profit on ordinary activities before taxation 297,921 107,626
Taxation 8 (96,152) (31,747)
Profit for the financial year 18 201,769 75,879
Earnings per share 9 3.923p 1.489p
Diluted earnings per share 9 3.815p 1.367p
All amounts relate to continuing operations.
Consolidated Statement of T otal Recognised 
Gains and Losses
Year ended 31 March 2004
2004 2003
£ £
Profit for the financial year 201,769 75,879
Prior period adjustment
Adjustments in respect of the understatement of trade debtors and trade creditors 
relating to transactions wholly contained in the two accounting periods ended 
31 March 2002 (as explained in note 23) (231,706) –
Total recognised gains and losses recognised since last Annual Report (29,937) 75,879
15 The 4Less Group plc Annual Report & Accounts 2004 Consolidated Balance Sheet
31 March 2004
2003
2004 (As restated)
Notes ££ ££
Fixed assets
Tangible 10 299,516 87,871
299,516 87,871
Current assets
Debtors 12 608,220 251,678
Cash at bank and in hand 7,844,363 4,669,598
8,452,583 4,921,276
Creditors: amounts falling due within one year 13 (8,310,210) (4,769,027)
Net current assets 142,373 152,249
Total assets less current liabilities 441,889 240,120
Net assets 441,889 240,120
Capital and reserves
Called up share capital 17 51,427 51,427
Share premium account 18 160,805 160,805
Profit and loss account 18 229,657 27,888
Equity shareholders’ funds 19 441,889 240,120
The financial statements were approved by the Board on 16 September 2004.
Signed on behalf of the Board of Directors
Charles McLeod
Director
16 The 4Less Group plc Annual Report & Accounts 2004 Company Balance Sheet
31 March 2004
2003
2004 (As restated)
Notes ££ ££
Fixed assets
Tangible 10 288,708 82,247
Investments 11 6 6
288,714 82,253
Current assets
Debtors 12 664,519 284,787
Cash at bank and in hand 7,784,558 4,665,129
8,449,077 4,949,916
Creditors: amounts falling due within one year 13 (8,229,371) (4,752,820)
Net current assets 219,706 197,096
Total assets less current liabilities 508,420 279,349
Capital and reserves
Called up share capital 17 51,427 51,427
Share premium account 18 160,805 160,805
Profit and loss account 18 296,188 67,117
Equity shareholders’ funds 508,420 279,349
The financial statements were approved by the Board on 16 September 2004.
Signed on behalf of the Board of Directors
Charles McLeod
Director
17 The 4Less Group plc Annual Report & Accounts 2004 Consolidated Cash Flow Statement
Year ended 31 March 2004
2004 2003
£ £
Reconciliation of operating profit to net cash inflow from operating activities
Operating profit 168,436 14,348
Depreciation of tangible fixed assets 108,113 62,400
Increase in debtors (397,280) (200,295)
Increase in creditors 3,520,958 3,378,388
Net cash inflow from operating activities 3,400,227 3,254,841
Cash flow statement (note 20)
Net cash inflow from operating activities 3,400,227 3,254,841
Returns on investments and servicing of finance 129,485 88,132
Taxation (35,189) (60,589)
Capital expenditure (319,758) (32,384)
Cash inflow before financing 3,174,765 3,250,000
Financing – (81,272)
Increase in cash in the period 3,174,765 3,168,728
Reconciliation of net cash flow to movement in net funds (note 21)
Increase in cash in the period 3,174,765 3,168,728
Finance lease – repayment of capital element – 19,576
Change in net funds 3,174,765 3,188,304
Net funds at 1 April 2003 4,669,598 1,481,294
Net funds at 31 March 2004 7,844,363 4,669,598
18 The 4Less Group plc Annual Report & Accounts 2004 Notes to the Consolidated Financial Statements
Year ended 31 March 2004
1 Accounting Policies
(a) Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention and in accordance with applicable 
accounting standards.
The consolidated financial statements comprise the audited financial statements of the Company and its subsidiary undertakings
made up to 31 March 2004. The results of subsidiaries acquired are consolidated from the date on which control passed.
Acquisitions are accounted for under the acquisition method.
A separate profit and loss account for the parent company has not been prepared as permitted by Section 230(2) of the
Companies Act 1985. The profit after tax for the financial period of the parent company was £229,071 (2003 – £92,483).
(b) Turnover and revenue recognition
Turnover represents:
1. The gross value of foreign exchange currency transactions undertaken by the Group’s foreign currency business. Purchases 
of currency relating to such transactions are treated as cost of sales.
Turnover is recognised after receiving the client’s written authorisation. Where the Group enters into contracts with its clients, 
it also enters into separate matched forward contracts with its bankers.
2. Commissions earned from arranging property and car finance. Such revenue is recognised when the client has entered into
irrevocable arrangements with the loan provider.
(c) Forward delivery contracts and monies due from clients
The Company has the right to insist on net settlement. Accordingly, trade debtors represent the net balance due to the Group.
Where funds have been received from clients in advance, the Group’s liability to them is included in trade creditors.
This represents a change in accounting policy to more accurately reflect the nature of the transactions undertaken by the Group
and has had no impact on the profit and loss account. See notes 16 and 23. The previous accounting policy was to include the
gross amounts owing from and to clients within trade debtors and trade creditors respectively.
(d) Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed
assets, less their estimated residual value, over their expected useful lives on the following bases:
Motor vehicles 33%
Office equipment 33%
Leasehold improvements Over the life of the lease
(e) Operating leases
Operating lease rentals are charged in the profit and loss account on a straight line basis over the lease term.
(f) Investments
Investments are stated at cost less provision for impairment.
(g) Financial instruments
The only financial instruments utilised by the Group are spot and fixed and open forward exchange contracts to match customers’
specific requirements. The Group does not enter into speculative contracts on its own account.
(h) Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date or, 
if matched, at the forward contract rate. Transactions in foreign currencies are translated into sterling at the rate ruling on the date
of the transaction or, if matched, at the forward contract rate. Exchange differences are taken into account in arriving at the
operating profit.
(i) Deferred taxation
In accordance with FRS19 full provision is made at current rates for taxation deferred in respect of all timing differences. Deferred
tax balances are not discounted. Deferred tax assets are only recognised where they arise from timing differences where their
recoverability is regarded as more likely than not.
19 The 4Less Group plc Annual Report & Accounts 2004 Notes to the Consolidated Financial Statements
continued
Year ended 31 March 2004
2 Segmental Reporting
An analysis of turnover and profit after tax by class of business is given below:
2004 2003
£ £
Turnover
Provision of foreign currency 318,779,410 271,516,883
Arranging car finance 205,389 262,734
Arranging property finance 184,653 82,799
319,169,452 271,862,416
All turnover arose within the United Kingdom.
2004 2003
£ £
Profit before tax
Provision of foreign currency 316,625 122,577
Arranging car finance (36,308) 5,611
Arranging property finance 17,604 (20,562)
297,921 107,626
An analysis of net assets by class of business:
2004 2003
£ £
Provision of foreign currency 508,420 279,349
Arranging car finance (41,376) (5,458)
Arranging property finance (25,155) (33,771)
3 Operating Profit
The operating profit is stated after charging:
2004 2003
£ £
Depreciation of tangible fixed assets – owned 108,113 62,400
Auditors’ remuneration – audit services 25,000 20,000
– non-audit services 5,000 37,115
Operating lease rentals – land and buildings 93,877 31,348
The Company’s auditors also provided further non-audit services amounting to £60,000 in the year in relation to the Company’s
preparation for admission on to AIM.
20 The 4Less Group plc Annual Report & Accounts 2004 4 Directors’ Emoluments
2004 2003
£ £
Directors’ emoluments 336,500 266,375
No pension contributions were made on behalf of any of the Directors (2003: £Nil).
The highest paid Director received emoluments and benefits as follows:
2004 2003
£ £
Emoluments 85,000 85,000
On 14 April 2004 the Company granted Executive Share Options to the trustee of the EBT Plan (see Report of the Directors) 
in respect of the following Directors:
££ £
Exercise price 0.55 0.70 0.90
Total
No. No. No. No.
Greg Begley 265,000 265,000 265,000 795,000
Nigel Paul 265,000 265,000 265,000 795,000
Timothy Sullivan 194,462 194,462 194,462 583,386
Total 724,462 724,462 724,462 2,173,386
The above options are exercisable between three and ten years following their grant if the Company’s share price has not been
less than the relevant exercise price for a continuous period of three months.
5 Staff Costs
Staff costs, including Directors’ emoluments, were as follows:
2004 2003
£ £
Wages and salaries 1,379,102 951,557
Social security costs 157,026 96,790
1,536,128 1,048,347
The average number of employees, including executive Directors, during the period was:
2004 2003
No. No.
Sales and administration 34 22
6 Interest Receivable and Similar Income
2004 2003
£ £
Bank interest receivable 133,496 95,395
21 The 4Less Group plc Annual Report & Accounts 2004 Notes to the Consolidated Financial Statements
continued
Year ended 31 March 2004
7 Interest Payable and Similar Charges
2004 2003
£ £
Bank loans and overdrafts 4,011 1,680
Finance charges under finance lease and hire purchase contracts – 437
4,011 2,117
8 Taxation
a) Analysis of charge in period
2003
2004 (as restated)
£ £
Current tax:
UK corporation tax on profits of the period (previously 2003: £30,618) 90,840 14,186
Adjustment in respect of previous periods (previously 2003: £1,129) (358) 431
Total current tax (note 8(b)) (previously 2003: £31,747) 90,482 14,617
Total deferred tax (note 8(c)) (previously 2003: £Nil) 5,670 17,130
Total tax charge for the year 96,152 31,747
b) Factors affecting tax charge for period
2003
2004 (as restated)
£ £
Profit on ordinary activities before tax 297,921 107,626
Expected tax at 30% 89,377 32,288
Expenses not deductible for tax purposes 13,231 3,864
Depreciation in excess of capital allowances 4,828 9,418
Taxation of profits at marginal/small companies rate (6,098) (8,517)
Utilisation of tax losses brought forward (10,498) (22,867)
Adjustments to tax charge in respect of prior period (358) 431
Actual tax charge 90,482 14,617
c) Deferred tax asset
Accelerated
Tax capital
losses allowances Total
£ £ £
Group
At 1 April 2003 12,777 443 13,220
Deferred tax credit/(charge) (note 8(a)) (10,498) 4,828 (5,670)
At 31 March 2004 2,279 5,271 7,550
Company
At 1 April 2003 4,841 159 5,000
Deferred tax credit/(charge) (4,841) 4,341 (500)
At 31 March 2004 – 4,500 4,500
22 The 4Less Group plc Annual Report & Accounts 2004 9 Earnings per Share
Both basic earnings per share and diluted earnings per share are based on a profit of £201,769 (2003: £75,879). The basic
earnings per share has been calculated on a weighted average of 5,142,850 (2003: 5,116,738) Ordinary Shares in issue. The
diluted earnings per share has been calculated on a weighted average of 5,288,452 (2003: 5,573,448) of Ordinary Shares in 
issue and the dilutive potential Ordinary Shares from warrants.
10 Tangible Fixed Assets
Leasehold Motor Office
improvements vehicles equipment Total
££ £ £
Group
Cost
At 1 April 2003 – – 205,860 205,860
Additions 162,83711,253145,668319,758
At 31 March 2004 162,837 11,253 351,528 525,618
Depreciation
At 1 April 2003 – – 117,989 117,989
Charge for period 20,680 3,312 84,121 108,113
At 31 March 2004 20,680 3,312 202,110 226,102
Net book amount
At 31 March 2004 142,157 7,941 149,418 299,516
At 31 March 2003 – – 87,871 87,871
Company
Cost
At 1 April 2003 – – 197,131 197,131
Additions 162,837 – 145,668 308,505
At 31 March 2004 162,837 – 342,799 505,636
Depreciation
At 1 April 2003 – – 114,884 114,884
Charge for period 20,680 – 81,364 102,044
At 31 March 2004 20,680 – 196,248 216,928
Net book amount
At 31 March 2004 142,157 – 146,551 288,708
At 31 March 2003 – – 82,247 82,247
23 The 4Less Group plc Annual Report & Accounts 2004 Notes to the Consolidated Financial Statements
continued
Year ended 31 March 2004
11 Fixed Asset Investments
Shares in
subsidiary
undertakings
£
Company
Cost
At 1 April 2003 and 31 March 2004 6
The Company holds 100% of the ordinary share capital of www.car-finance4less.com Limited, which is an arranger of car finance,
www.propertyfinance4less.com Limited, which is an arranger of property finance and www.fx4less.com Limited, Boatfinance4less
Limited, and Currencies4less Limited which are dormant. All subsidiaries are registered in England and Wales.
12 Debtors
Group Company
2003 2003
2004 (as restated) 2004 (as restated)
£ £ £ £
Due within one year
Trade debtors 304,572 143,353 110,675 79,742
Amounts due from Group undertakings – – 264,140 110,482
Other debtors – 2,109 – –
Corporation tax recoverable – 35,068 – 33,798
Prepayments and accrued income 296,098 57,928 285,204 55,765
Deferred tax asset (note 8(c)) 
relating to prior period adjustment (Note 23) 7,550 13,220 4,500 5,000
608,220 251,678 664,519 284,787
13 Creditors
Group Company
2003 2003
2004 (as restated) 2004 (as restated)
£ £ £ £
Amounts falling due within one year
Trade creditors 8,026,377 4,636,921 8,014,815 4,630,337
Corporation tax 20,225 – 21,495 –
Other tax and social security 74,666 42,693 64,960 42,693
Other creditors 69,226 32,531 11,100 23,408
Accruals and deferred income 119,716 56,882 117,001 56,382
8,310,210 4,769,027 8,229,371 4,752,820
24 The 4Less Group plc Annual Report & Accounts 2004 14 Lease Commitments
Annual commitments under non-cancellable operating leases are as follows:
Group Company
2004 2003 2004 2003
£ £ £ £
Land and buildings
Leases expiring: between two and five years 127,300 – 127,300 –
15 Financial Instruments
Treasury activities take place under procedures and policies monitored by the Board. They are designed to minimise the financial
risks faced by the Group which primarily arise from interest rate, currency and liquidity risks and information is given below. As
permitted by FRS 13 no further details are set out in respect of short-term debtors and creditors.
Interest rate risks
The Group has financed its operations primarily through the issue of equity shares and retained profit. Floating rate assets
comprise cash at bank and the Group receives interest on cash balances at rates linked to the Group’s banker base rate. The
Group has no significant borrowings. The Group has no other assets or liabilities that are subject to interest rate fluctuations.
Liquidity risk
The Group’s treasury management policies are designed to ensure the continuity of funding. The Group has significant surplus
cash at the period end.
Foreign currency risk
The Group does not have any significant foreign currency exposure as all foreign currency is acquired under matched contracts 
to fulfil contracts with customers and therefore no further analysis is required under FRS 13.
16 Forward Delivery Contracts and Monies Due from Clients
At the year end, the amount due from clients in respect of open contracts was £13,680,180 (2003: £13,402,307).
At the year end, the Group had committed to purchase currency at fixed rates from its bankers, in respect of clients, amounting 
to £16,081,319 (2003: £14,565,570).
25 The 4Less Group plc Annual Report & Accounts 2004 Notes to the Consolidated Financial Statements
continued
Year ended 31 March 2004
17 Share Capital
Allotted, called up
Authorised and fully paid
No. £ No. £
At 1 April 2003 10,000,000 100,000 5,142,850 51,427
31 March 2004 14,000,000 140,000 5,142,850 51,427
At the Annual General meeting held on 27 February 2004 the authorised share capital of the Company was increased from
£100,000 to £140,000 by the creation of 4,000,000 Ordinary Shares of 1p each ranking pari passu in all respects with the 
existing Ordinary Shares of 1p each in the capital of the Company.
The Directors were generally and unconditionally authorised pursuant to section 80 of the Companies Act 1985 to exercise all 
the powers of the Company to allot relevant securities as defined in section 80(2) up to an aggregate nominal amount of £40,000
for the purposes of the EMI plan, the EBT and the Executive Options, such authority to expire on 26 February 2009.
On 15 April 2004 the Company issued 2,833,333 new Ordinary Shares of 1p each ranking pari passu in all respects with the
existing Ordinary Shares of 1p each in the capital of the Company and on that date the Company’s shares were admitted for
trading on AIM. The shares were issued at 60p which represented a premium to the nominal value of 59p. Following Admission,
the authorised and issued share capital of the Company was:
Allotted, called up
Authorised and fully paid
No. £ No. £
At 15 April 2004 14,000,000 140,000 7,976,183 79,762
The Company has shareholder authority to grant three Executive Options in respect of an aggregate amount of 2,173,386 
Ordinary Shares, and these were granted on 14 April 2004.
On the same day the Company granted options in respect of an aggregate amount of 137,500 Ordinary Shares to certain
employees of the Company. It is the Company’s intention to grant these options under the terms of the EMI Plan referred 
to in the Report of the Directors.
On 26 June 2002 the Company granted a share warrant to Marwyn Investments Limited, in respect of 311,427 Ordinary Shares
exercisable at a price of 28p per share, to James Corsellis in respect of 155,713 Ordinary Shares, exercisable at a price 
of 60p per share and to JM Finn & Co in respect of 311,427 Ordinary Shares, exercisable at a price of 60p per share. The
warrants granted to Marwyn Investments Limited and James Corsellis may be exercised in whole or in part at any time up until 
27 May 2007. The warrant granted to JM Finn & Co may be exercised in whole or in part at any time up until 27 June 2007.
On 15 April 2004 the Company granted a warrant to Corporate Synergy to subscribe for 79,762 Ordinary Shares and is
exercisable at a price of 60p per share. It may be exercised in whole or in part at any time prior to the fifth anniversary 
of admission to AIM.
26 The 4Less Group plc Annual Report & Accounts 2004 18 Reserves
Group Company
£ £
Share premium
At 1 April 2003 and 31 March 2004 160,805 160,805
2004 2003
£ £
Group
Profit and loss account
At beginning of year as previously stated 259,594 183,715
Prior period adjustment (note 23) (311,056) (311,056)
Associated tax credit 79,350 79,350
Opening balance as restated 27,888 (47,991)
Profit for year 201,769 75,879
At end of year 229,657 27,888
Company
Profit and loss account
At beginning of year as previously stated 308,313 215,830
Prior period adjustment (note 23) (311,056) (311,056)
Associated tax credit 69,860 69,860
Opening balance as restated 67,117 (25,366)
Profit for year 229,071 92,483
At end of year 296,188 67,117
19 Shareholders’ Funds
2004 2003
£ £
Group
Shareholders’ funds at beginning of year as originally stated 471,826 477,219
Prior period adjustment (note 23) (311,056) (311,056)
Associated tax credit 79,350 79,350
Shareholders’ funds at beginning of year as restated 240,120 245,513
Profit for the year 201,769 75,879
New shares issued – 65,730
Costs incurred in respect of OFEX flotation – (147,002)
At end of year 441,889 240,120
27 The 4Less Group plc Annual Report & Accounts 2004 Notes to the Consolidated Financial Statements
continued
Year ended 31 March 2004
20 Gross Cash Flows
2004 2003
Returns on investments and servicing of finance
Interest received 133,496 90,686
Interest paid (4,011) (2,554)
129,485 88,132
Capital expenditure
Payments to acquire tangible fixed assets (319,758) (32,384)
Financing
Issue of share capital – 65,730
Expenses paid in connection with share issues – (147,002)
– (81,272)
21 Analysis of Changes in Net Funds
At At
1 April Cash Other 31 March
2003 flows changes 2004
£ ££ £
Cash at bank and in hand 4,669,598 3,174,765 – 7,844,363
22 Transactions with Related Parties
As permitted by Financial Reporting Standard 8, ‘Related Party Disclosures’, the financial statements do not disclose transactions
between the parent company and its subsidiaries to the extent that the transactions have been eliminated on consolidation.
During the year the Group paid the Marwyn Group of companies, of which Mr J Corsellis is a Director and shareholder, £79,379
(2003: £Nil). In addition to consultancy fees, these amounts included payments for the services of Mr J Corsellis as non-executive
Director and Chairman.
During the year, Tauristic Marketing Ltd, of which Mr C McLeod is a Director and shareholder, entered into spot foreign exchange
transactions on an arm’s length basis amounting to £15,964 (2003: £2,019).
Mr G Begley contracted to purchase currency at fixed forward and spot rates on an arm’s length basis. At the balance sheet date,
the total due for draw down at fixed future dates to September 2004 amounted to £87,089. The total value of the transaction 
was £137,627.
28 The 4Less Group plc Annual Report & Accounts 2004 23 Prior Period Adjustments
Certain balances in the financial statements have been restated for the year ended 31 March 2003 in relation to the following 
prior period adjustments.
a) Since the year end, it was found that trade debtors and trade creditors were understated in prior years. This represents 
a fundamental error relating to certain balances and transactions wholly contained in the two accounting periods ended 
31 March 2002.
b) Trade debtors and trade creditors have been restated following a change in accounting policy as described in note 1(c).
As originally Adjustment as Adjustment as As restated
stated per 23(a) above per 23(b) above 31 March 2003
££ £ £
Group
Trade debtors 13,465,918 104,309 (13,426,874) 143,353
Corporation tax recoverable (note 12) – 35,068 – 35,068
Deferred tax asset (note 8(c) and note 12) – 13,220 – 13,220
Trade creditors 17,648,430 415,365 (13,426,874) 4,636,921
Corporation tax payable (note 13) 31,062 (31,062) – –
Profit and loss account (note 18) 259,594 (231,706) – 27,888
Company
Trade debtors 13,402,307 104,309 (13,426,874) 79,742
Corporation tax recoverable (note 12) – 33,798 – 33,798
Deferred tax asset (note 8(c) and note 12) – 5,000 – 5,000
Trade creditors 17,641,846 415,365 (13,426,874) 4,630,337
Corporation tax payable (note 13) 31,062 (31,062) – –
Profit and loss account (note 18) 308,313 (241,196) – 67,117
24 Commitments and Guarantees
The Company has provided guarantees to the bank for the overdraft facilities of its subsidiary undertakings to the extent of
£70,000. The maximum exposure was £9,204.
The Company has a facility with its bank for spot and forward foreign exchange trading up to a maximum contingent risk amount
outstanding (as determined by the bank) of £4,750,000. The amount outstanding under this facility at the year end was £Nil 
(2003 – £Nil).
25 Post Balance Sheet Events
On 15 April 2004, the Company was floated and admitted to AIM and raised £1.7m (before expenses) via the issue of 2,833,333
Ordinary Shares of 1p each at a price of 60p each. Further details are provided in Note 17.
26 Ultimate Controlling Party
At the balance sheet date, the Company was controlled by Charles McLeod. Following the Company’s flotation on AIM, the
Company is no longer controlled by him. www.the4lessgroup.com
The 4Less Group plc
160 Brompton Road
London
SW3 1HW
Tel: 020 7594 0521
Fax: 020 7594 0560
Email: info@the4lessgroup.com