THE LAIRD GROUP PLC
Annual Report and Accounts 2003 THE LAIRD GROUP PLC
01 Financial highlights 
02 Chairman’s statement 
04 Chief Executive’s review 
22 Finance Director’s report 
24 Board of Directors 
25 Directors’ report 
27 Corporate governance report 
29 Corporate social responsibility 
31 Directors’ remuneration report 
37 Directors’ responsibilities 
38 Independent auditors’ report 
39 Group profit and loss account 
40 Group cash flow statement 
41 Group balance sheet 
42 Statement of total recognised gains and losses 
43 Company balance sheet 
44 Accounting policies 
46 Notes to the accounts 
62 Principal subsidiaries 
63 Five year summary 
64 Shareholder information 
A history of The Laird Group
Contents 2003 2002
£M £M
TURNOVER 428.8 424.3
†
PROFIT BEFORE TAX* 37.4 31.8
†
NET BORROWINGS 60.1 66.6
SHAREHOLDERS’ FUNDS 200.8 199.9
P/SHARE P/SHARE
EARNINGS* 21.6 17.3
†
DIVIDENDS 8.6 8.3
*BEFORE EXCEPTIONALS AND GOODWILL AMORTISATION
†FROM CONTINUING OPERATIONS
Financial highlights
THE LAIRD GROUP PLC 01 A Return to Dividend Growth
In line with the return to dividend growth established at the time of
our Interim Results in July 2003, your Board is recommending a
final dividend of 5.6 pence per share. This will provide a total
dividend for the year of 8.6 pence per share, compared with
8.3 pence per share for 2002.
Board Development
Mark Smith, Deputy Chairman and senior independent Non-Executive
Director, will, as previously announced, retire from the Board at the
Annual General Meeting in May 2004, after ten years as a Director.
I would like to thank Mark for his valuable service and extensive
contribution to the development of the Group. He will be succeeded 
as senior independent Non-Executive Director by David Morton. David,
a former Chairman and CEO of Alcan Aluminium, joined the Board in
1998 and his knowledge of The Laird Group coupled with his wealth
of industrial business and Board experience, particularly in North
America, equips him well for this role. Later in the year we will also
be announcing new appointments to the Board.
Employees
As a global business Laird employs people of many different
nationalities and cultures, and the very significant progress that we
have demonstrated during the year has been achieved through the
dedication and effort shown, and the successes achieved, by
them. Their energy and commitment are an essential part of what
makes Laird a successful and growing company, and I would like
to take this opportunity to thank them all.
Corporate Governance and Social Responsibility
Companies today exist in a climate focused on corporate
responsibility, encompassing good governance and high standards
of care. Considerable work was undertaken during the year to
ensure that the Group is in compliance with all aspects of the new
Combined Code which is effective in 2004. We have maintained
an active investor relations programme to ensure a full and open
dialogue with our shareholders and, through an independent third
party, commissioned during 2003 a formal opinion survey of
eighteen of our main shareholders, with positive results. 
It is important for us to be good corporate citizens in the many
different locations and environments in which we work and we have
therefore developed and promulgated new Group policies on
Ethics, on Health, Safety and the Environment and on Employment. 
The majority of our main manufacturing facilities are now ISO 9001
or ISO 9000 certified, with their demanding standards of quality
and safety, and our ultimate goal is to expand this to all of our
main manufacturing plants within the next twelve months, and 
include the ISO 14001 standard, with its additional environmental
requirements, in due course. Further details of our activities in all of
these areas are given later in this Report.
Looking Forward with Confidence
2003 was a year of significant progress, with continued strengthening
of our businesses and improved operating performance, resulting
in the delivery of strong profits and earnings growth. We have also
underpinned our already sound financial structure with the renewal
during the year of our bilateral banking facilities for a further five years,
to 2008, thus ensuring that we have the financial capacity to continue
making value enhancing investments and acquisitions. We have
started to see an improvement in certain of our markets, particularly
those serving the electronics industries. With this improving market
environment, the developments we have made and the actions 
we are taking, we look forward to 2004 with confidence.
Nigel Keen
Chairman
Chairman’s statement
A Year of Growth and Enhanced Shareholder Value
Laird today is an international Group, holding leadership positions
in the market segments where our businesses operate. We aim 
to deliver profitable growth by the continuing development and
strengthening of these businesses, building a competitive edge
through technology, customer service and low-cost manufacturing.
We focus on specialist markets which provide opportunities 
for growth and where our global reach gives us considerable
advantages over our competitors. Our growing presence in Asia
provides proximity to our customers in that region as well as a
lower cost supply base. The Laird strategy is one driven by the
overriding objective of creating and enhancing shareholder value,
today and for the future. 2003 marked a further year in the
successful implementation of this strategy.
Delivering Strong Profits and Earnings Growth
In 2003, we delivered strong profits and earnings growth, with 
all three of our divisions, Laird Technologies, Laird Security
Systems and Laird Plastics, again increasing their operating profits.
We achieved this in the context of difficult economic and market
conditions and geopolitical uncertainty in the early part of the year,
as well as the impact of SARS and the adverse translation effects
of exchange rate movements. Group profits for 2003, before
exceptional items, goodwill amortisation and tax, were £37.4 million,
27% up on the £29.4 million reported in 2002 and 18% up on the
£31.8 million from continuing operations. Earnings per share on a
similar basis were 21.6 pence, up 37% on the 15.8 pence in 2002,
and 25% up on the 2002 earnings from continuing operations of
17.3 pence. Cash generation was extremely healthy with a trading
cash inflow of £38.2 million compared with £30.2 million in 2002.
Net borrowings were reduced despite making a number of
acquisitions and continued investment during the year.
02 THE LAIRD GROUP PLC THE LAIRD GROUP PLC 03 Chief Executive’s review
Exceptional costs charged during the year were at a greatly
reduced level compared with 2002, amounting to £5.9 million.
The costs were incurred largely as a result of the rationalisation 
of the European operations of Laird Technologies, now being
repositioned to our new facility in the Czech Republic. We are also
closing and transferring some of the UK production capacity of
Laird Security Systems to its expanded operations in China.
Earnings per share in 2003 before exceptional items and goodwill
amortisation were 21.6 pence, 37% up on 2002 earnings of
15.8 pence and 25% up on the 17.3 pence from continuing
operations.
Strong Cash Generation
Laird has maintained a sound financial structure and a strong 
cash generative ability. Net borrowings at the year end were
£60.1 million, representing 30% of shareholders’ funds, down from
£66.6 million at the end of 2002. Interest cover for the year was
10.4 times before exceptional costs and goodwill amortisation, up
from 7.0 times in 2002. Both interest costs and our reported level
of borrowings benefited from the translation of US$ into Sterling.
Cash generation was again strong, with a trading cash inflow for
the year of £38.2 million before the net effect of acquisitions,
disposals and dividend payments, compared with an inflow of
£30.2 million in 2002. Conversion of operating profits into cash
was again over 100%.
The maintenance of a strong financial structure is a key factor in
our strategy. £140 million of new bilateral banking facilities have
been put in place during the year, for a five year term to 2008.
These new facilities, together with the Group’s £37.2 million of US
Dollar Private Placement facilities running at various dates through
2014, give Laird the financial resources to make further value
enhancing investments and acquisitions.
Strength and Leadership through Acquisition
The year was another active one in terms of bolt-on acquisitions
with a spend during the year of £21.4 million, as we pursued a two
pronged strategy of expanding our core businesses and extending
our capabilities into new, related markets. In Laird Technologies we
expanded geographically our electromagnetic interference (“EMI”)
shielding business and embarked on the first stages of our planned
extension of Laird Technologies’ capabilities into the related market
sector of thermal management products and solutions.
In September, we acquired the business of Magnes Corporation 
in Korea, whilst at the same time establishing a branch of Laird
Technologies there, thus allowing us to offer the full range of our
products directly into this important market and positioning us 
to serve the major Korean electronics companies globally. 
Delivering Profitable Growth through Market Leadership
We have delivered another year of profitable growth through
leadership in specialist market sectors, underpinned by our global
reach. We have continued to strengthen the strategic positioning
of our businesses during the year and have improved further our
operating and financial performance. In spite of weak economic
and market conditions in the early part of the year and the adverse
translation effects of exchange rate movements, the actions we
have taken have enabled us to deliver another set of strong results.
Turnover in 2003 was £429 million, up from the £424 million
reported from continuing operations in 2002. At constant exchange
rates turnover was up 8%. This increase reflects both our organic
growth, largely as a result of market share gains, and the benefits
arising from bolt-on acquisitions in our technology and security
systems businesses.
By continuing to lower our cost base and by improving margins
during the year, and despite the adverse translation effects of
exchange rate movements, operating profits before exceptional
items were higher in each of our divisions. We saw profit growth of
17% at Laird Technologies, 10% at Laird Security Systems and
43% at Laird Plastics. The elimination of loss-making businesses,
disposed of in 2002, also benefited Group profits in 2003.
Group profits for 2003, before exceptional items, goodwill
amortisation and tax, were £37.4 million, 27% up on the
£29.4 million reported in 2002, and 18% up on the £31.8 million
from continuing operations. At constant exchange rates the
increases would have been 37% and 27% respectively.
04 THE LAIRD GROUP PLC A sound financial structure is also central to our strategy. Laird
continues to exhibit an attractive cash generation profile, with the
combination of our businesses yielding financial benefits to the
Group as a whole. This gives us the financial strength to make
further, value enhancing investments and acquisitions to ensure
that we maintain strong positions in our markets.
Building our Businesses for the Future
We are well positioned for 2004, given the strength of our
businesses, the actions we continue to take and the strategy
we have in place. We are expanding into related market segments
and will continue with our programme of making bolt-on
acquisitions. We have begun to see an improvement in certain of
our markets, particularly those serving the electronics industries.
With the developments we have made and the actions we are
taking, we look forward to making further progress in 2004.
Peter Hill
Chief Executive
This was followed in October by our first move into the thermal
management market with the acquisition of Orcus Inc. in the USA,
a supplier of differential phase change thermal interface materials
used by the electronics industry as a heat transfer medium
between heat sources and heat dissipation devices. 
In December, we acquired Warth Limited, with facilities in the UK
and Japan. Warth supplies thermally conductive silicone polymer
products for the electronics industry as well as distributing a wider
range of thermal management products, and manufactures
specialist EMI products for the European and Japanese markets.
There were also acquisitions to strengthen the core business of
Laird Security Systems, at the same time as expanding into new
and higher growth market sectors. In February we acquired
Omega, a leading supplier of constant force balances to the US
window industry, thereby further extending our product offering in
North America. 
In November, by acquiring Intron Limited, a supplier of high
specification composite doors to the social and private housing
markets, we established a strong position in this fast growing UK
market, where replacement is responsible for 90% of demand
which is itself driven by committed Government spending. Laird
Security Systems brings a differentiated and fully integrated
solution to this market.
A Strategy for Continuing Growth
Each of The Laird Group’s divisions holds leading market positions
in their industries, and we have made significant advances
in recent years in positioning our business portfolio towards
specialist, higher growth markets and this process continues.
Our acquisitions and divestments, and our entry into new growth
market segments, reflect this and, as with other areas of our
business, we aim over time to become leaders in these new
market segments. In keeping with this strategy, we will continue 
to seek out and exploit opportunities in other new areas related 
to our existing businesses.
Laird’s global reach is a critical success factor and we continued
to expand our Asian presence in 2003, with the number of our
employees there growing more than 60% in the year to over 700.
The region represents an exciting and growing market and our
presence there keeps us close to our customers in the region,
while also providing us with a lower cost supply base. We again
expanded our capacity and capabilities in China in 2003, extended
our operations in Japan and established a new presence in Korea.
Operationally, we continue to focus on performance improvement
while remaining close to our customers, delivering high levels of
customer service. We will continue to develop the breadth and
capabilities of our products. These strengths are underpinned by
our low-cost manufacturing base, which will be enhanced further
in 2004 as our new plant in the Czech Republic comes on stream.
THE LAIRD GROUP PLC 05 06 THE LAIRD GROUP PLC
Laird Technologies THE LAIRD GROUP PLC 07
Laird Technologies is the global 
market leader in the design and 
supply of electromagnetic interference
shielding solutions, covering all
sectors of the electronics industry
Laird Technologies’ engineering,
manufacturing and technical
staff are recognised as pioneers
in the development of 
EMI solutions
Laird Technologies’ extensive
global presence means that
customers receive local service
on a global scale 08 THE LAIRD GROUP PLC Laird Technologies is the global market leader in the design and
supply of electromagnetic interference (EMI) shielding solutions, 
covering all sectors of the electronics industry: information
technology, telecommunications and data transfer, as well as the
defence, automotive and medical sectors. Laird Technologies has
also established a growing presence in the design and supply of
thermal management products and solutions for electronic devices.
Global Market Leadership
Laird Technologies’ markets had strengthened by the end of 
2003, having been subdued during the first half of the year and 
with Asian electronics and mobile telephone demand adversely
affected by the outbreak of SARS. By the end of the third quarter
there was increasing evidence that demand was picking up, and
order intake for Laird Technologies strengthened during the latter
part of the year. Turnover for 2003 was £95.8 million, up from
£92.4 million in 2002 with the benefits from acquisitions offsetting
adverse currency translation effects. At constant exchange rates
turnover would have been up 11%, as a result of acquisitions.
Operating profits before exceptional items were £12.6 million for 
the year, 17% up on the £10.8 million in 2002 and up 23% at
constant exchange rates. Operating margins continued to improve
as a result of a further expansion of low-cost manufacturing and
additional operational efficiencies, despite modest price declines in
certain product sectors.
Growth through Acquisition
Laird entered the EMI market with the acquisition of APM in the
mid 1990s together with a spin-off from the Group’s successful
sealing business and rapidly established itself as a leading supplier
of high quality metallised fabric-over-foam EMI seals. Further
acquisitions gave Laird Technologies market leadership positions in
the supply of precision stamped metal shields, radiation absorber
materials and, in 2002, printed circuit board EMI shields,
predominantly for the mobile telephone handset market. Laird
Technologies also extended its geographic reach during this
process, firmly establishing itself as the global market leader in
EMI shielding.
In late 2003, as part of its strategy to expand beyond EMI while
leveraging its global presence, as well as its design and
manufacturing capabilities, Laird entered the electronic thermal
management market, with the acquisition of Orcus in the US, a
specialist supplier of thermal interface materials. This was followed
rapidly by the acquisition of Warth, a supplier of thermal interface
and EMI products in the UK and Japan. 
Opportunities are being sought to expand further into other
specialist areas of thermal management products and solutions, 
as well as into other new, but related, product areas which either
protect or enhance the performance of electronic devices.
0
25
50
Turnover 
£m
Operating profit
£m
2003
2002
0
4
8
12
THE LAIRD GROUP PLC 09
75
100 16 Establishing a Presence in Central Europe
Following investment grant approval in May 2003 from the
Government of the Czech Republic, construction began in July on
a new manufacturing plant at Liberec, north of Prague. The new
plant was handed over by the building contractors on schedule
and to budget in late December and the transfer of equipment
began, with the first sales from the plant in January 2004. Once
fully operational, in the second half of this year, the new facility will
provide customers with a complete range of shielding products
and solutions as well as a full engineering, design and prototyping
capability. Laird Technologies’ manufacturing capacity in Scotland
and in Germany was reduced as planned in the latter part of 2003.
Expansion across Asia
Laird Technologies continued the development of its operations in
China during the year. A second building was leased in Shenzhen,
in southern China, allowing the expansion of fabric-over-foam
capacity and the establishment of a full prototyping and design
centre. The new beryllium copper facility came on stream during
2003, as did the new Flectron
®
metallised fabric line. A third
building in Shenzhen will be leased during 2004. The Shanghai
plant has been doubled in size with the lease of new space, 
and full board level shield production is building up there. 
Fabric-over-foam capacity was also installed during the year and,
together with our sales office in Suzhou, will allow us to service 
the growing IT equipment providers in eastern China. Production
capacity at Laird Technologies’ plant at Tianjin, in north-eastern
China, which is located close to the major facilities of leading
mobile telephone providers, is also being expanded, with the
addition of board level shield manufacture and design to the
existing form and mould in place capabilities.
Elsewhere in Asia Laird Technologies has established a direct
presence in Korea for the first time, with the acquisition of Magnes.
This enables us to serve better the important electronics
manufacturers which are based there, as well as positioning us to
serve the major Korean electronics companies globally. Our
operation in Japan was expanded towards the end of the year and
this, combined with the acquisition of Warth and its Japanese
facility and capabilities, means that Laird will be able to serve its
existing and potential Japanese customers, both in Japan and in
Asia generally, to a higher level.
Extending our Global Leadership Position
Laird Technologies has seen a recovery in demand in the mobile
telephone market, increased volume demand in the IT sector, and
the initial signs of recovery in the telecommunications infrastructure
and data transfer segments. The military and automotive markets
are also growth areas for EMI shielding and thermal management
products. This recovery in our markets, the actions we continue 
to take to expand and improve our core EMI shielding business,
together with our expansion into new but related electronics
products and solutions, should ensure that Laird Technologies will
deliver further profitable growth.
10 THE LAIRD GROUP PLC THE LAIRD GROUP PLC 11 12 THE LAIRD GROUP PLC
Laird Security Systems
3D computer aided design
improves and speeds the 
new product development
process and aids the objective 
of “right first time products”
A measure of Laird Security Systems’
creativity is the continuous flow of
patents and registered designs that
are awarded to the design teams
every year
Laird Security Systems’
business model remains 
that of an integrated global
engineering, design and low
cost manufacturing structure,
supported by strong local
execution and dedication 
to the customer THE LAIRD GROUP PLC 13 14 THE LAIRD GROUP PLC Laird Security Systems is a leader in the design, development,
manufacture and distribution of innovative solutions to improve
performance and enhance security for the residential building and
home improvement markets. We supply a comprehensive range of
security, hardware and sealing products for windows and doors in
the UK and North America.
Growth through Customer Partnership
Laird Security Systems had another very successful year in 2003,
once again reporting growth in turnover, profit and operating
margins together with strong cash generation. This was achieved
despite the adverse translation effect of exchange rate movements
on its US operations and input pricing pressure on its uPVC
products as a result of higher oil prices. In the UK, window volume
demand again showed a small decline, with growth in the door
and conservatory segments. In the US, our markets again showed
modest growth. Turnover in 2003 increased 5% to £205.3 million,
compared with £195.9 million in 2002, with turnover growth of 9%
at constant exchange rates.
Turnover growth was achieved both in the UK and in North America
as we continued to benefit from our close relationship with our
major customers, and also through industry leading performance
in product development underscored by the highest levels of
customer service and support. Increasingly, we work directly with
our major customers in new product design and development,
thereby becoming an integrated service provider in the supply
chain of our customers. Through bolt-on acquisitions in recent
years we have also generated steady turnover growth, with the
enhancement of existing products and the benefits derived from
access to the engineering, sales and distribution network of
Laird Security Systems.
Operating profits for the year, before exceptional items, grew 10%
to £24.8 million in 2003 compared with £22.6 million reported in
2002. At constant exchange rates the profits growth was 19%,
demonstrating the robustness of Laird Security Systems’ business
model after the 14% profits growth at constant exchange rates
delivered in 2002, which followed a 30% growth in operating
profits achieved in 2001.
Success and Innovation with a Robust Business Model
Our business model continues to be based on integrated global
engineering and design with low-cost manufacturing, supported 
by strong local execution and dedication to the customer, with
products being adapted where necessary for the local market.
In addition, we work alongside our customers in product and
market development, and we are also increasingly focusing on 
the identification and exploitation of higher growth segments 
within our overall market.
An example of this approach has been our expansion of door
related products, which contributed to the enhanced sales and
profit generation during the year. In the UK, growth continued in
our multi-point lock, door hinge and door handle programmes,
while in the US further growth was seen in the sales of Sash
Controls’ door products, with profitability being enhanced by the
transfer of product manufacturing to China. An initiative with a
major American customer is expected to result in a new, specially
designed door hardware product range for North America being
launched in the second half of 2004, and this will be an important
breakthrough for us in this growing North American market
segment.
0
50
100
150
200
250
Turnover 
£m
Operating profit
£m
2003
2002
0
6
12
18
24
30
THE LAIRD GROUP PLC 15 Laird Security Systems has also continued to demonstrate overall
sales and profits growth in its traditional window hardware, seals
and uPVC profiles businesses. In particular, window balances in
the US, where we are the market leader, and also high quality,
engineered weatherproofing seals, showed good growth. Sales
also benefited from the introduction of our new combination
balance and uPVC profile “Jambliner” product in the US, and
growth in demand for the “Legend 70” window system in the UK,
though growth in profitability was held back as a result of higher
resin prices. 
Following the acquisition of Omega in February 2003, constant
force balance production was transferred to an existing Laird
Security Systems facility in North Carolina in the US, with the
original facility in West Virginia being closed. Window hardware
product transfer to China from the UK continued during 2003,
which will allow the friction stay manufacturing facility in
Cheltenham to be closed, while production in China of window
hardware products using the new Physical Vapour Deposition
corrosion resistance coating application was expanded. 
Laird Security Systems extended its geographic coverage in the
US at the end of 2003 with the opening of a new branch in the
western US, which will provide support to our larger customers 
on a national scale as well as access to the local market in that
region. Market research was completed during the year into
serving the local Chinese and Asian markets with a select range of
door and window hardware products, and a pilot sales and
marketing campaign will begin in 2004. Trials of our prototype
electronic access controls for windows and doors continued in the
UK during 2003, confirming the technical viability of the product
offering. Market acceptance trials are currently underway which,
if successful, will result in the start of commercial scale
development during 2004, aimed at both the new build and
replacement residential markets. 
Growth Markets and New Routes to Market
As part of a strategy of identifying and exploiting higher growth
sectors within our overall market, Laird Security Systems acquired
Intron Limited, a leading UK composite door manufacturer, in
November 2003. The market for composite doors is growing due
largely to a number of Government funded social housing
initiatives, where the combination of security and maintenance
characteristics result in composite doors being the preferred
product. Our long-standing relationship with the local authority
market, together with specifically developed hardware solutions,
has positioned us to be a leading player in this market.
New routes to market were also developed in 2003 and sales to
the DIY market in the UK continued to grow. Cellular uPVC roofline
products were launched in the UK through major DIY outlets, with
an installation programme to be rolled out in 2004. Following the
success of Laird Security Systems’ Ventrolla window renovation
franchise business in recent years, a pilot lock installation and
maintenance operation was launched in 2003. The intention is to
develop a national UK franchise of security hardware installers,
providing high standards of reliable service to the consumer,
supported by national quality and marketing expertise. 
Demonstrating Leadership through Organic Growth
and Acquisition
Laird Security Systems has continued to strengthen and develop
its business, both organically and through bolt-on acquisitions,
through an integrated global product to market strategy. Strong
customer relationships combined with high levels of customer
service, a broad product offering supported by a well established
low-cost manufacturing base, together with an increasing focus on
higher growth market segments, are all expected to combine to
support the profitable growth of Laird Security Systems.
16 THE LAIRD GROUP PLC THE LAIRD GROUP PLC 17 18 THE LAIRD GROUP PLC
Laird Plastics THE LAIRD GROUP PLC 19
Laird Plastics is now firmly established
as a market and performance leader in
North American plastics distribution
Laird Plastics’ sales representative
network was expanded and 
strengthened during the year, 
with new market and product 
driven sales plans being introduced
High impact acrylic, distributed
by Laird Plastics, is the perfect
material for runway signage,
where the emphasis is on
visibility and durability 20 THE LAIRD GROUP PLC With 47 Service Centres in operation across the USA and Canada,
Laird Plastics is the leading independent plastics distributor in
North America. As their channel to market, the business
represents major North American and international suppliers of 
an extensive range of plastic products and sells to a wide array 
of end use markets and customers. 
A Year of Solid Growth
The solid recovery in Laird Plastics’ performance, starting in 2002,
continued throughout 2003. This owed much to the actions taken
to strengthen and improve the business and was achieved in the
face of continuing weak economic and market conditions, the
effect of higher oil prices and increased industry competition.
Turnover for 2003 was £127.7 million compared with £136.0 million
in 2002, with turnover growth at constant exchange rates of 4%.
This growth in turnover resulted from a greater focus during the year
on specialist product sectors such as graphics, with new product
specialists added, and from increased sales of mechanical plastics
to several new key accounts. Market share gains were achieved 
in certain key sectors, customer service levels were improved 
and the customer base expanded. However, in the acrylic and
polycarbonate product lines pricing pressure from an oversupplied
market limited the opportunities for growth.
Operating profits before exceptional items for the year were
£4.0 million, an increase of 43% on the £2.8 million reported in 2002
and up 56% at constant exchange rates. This strong profit
improvement was achieved even though we faced input pricing
pressure during the year, and resulted in operating margins
increasing towards industry leading levels. The focus on improving
transactional efficiencies, the achievement of cost savings from
consolidating freight vendors and an improvement in materials
margins through working closely with major vendors, all contributed to
the greater profitability. A continued focus on working capital
management and on streamlining the supply chain also contributed
to another year of strong cash generation from the business.
Positioning for the Future
Management at Laird Plastics was further strengthened in 2003
and we continued with the reinforcing and repositioning, started in
2002, of the Service Centre network. Some smaller Service
Centres that were in sub-optimal locations or unable to achieve
the necessary critical mass were closed. New operations were
started in Halifax, Nova Scotia and Fort Lauderdale, Florida, where
there is considerable market potential but which hitherto had been
under-represented. Service Centres in Toronto and Vancouver in
Canada, and Tampa in the US, were relocated into larger and more
efficient premises, thus better positioning us to serve customers in
those regions and take advantage of local demand growth. 
Our sales representative network was expanded and strengthened
during the year, with new market and product driven sales plans
being introduced. These plans highlight the use of new specialists
in various product and market segments to take full advantage of
increasing customer demands and an improving North American
economy, with further initiatives in hand in 2004. Following some
early success in 2003, the focus on developing new national
accounts, by taking advantage of our geographic coverage across
the United States and Canada, is also expected to deliver
additional benefits this year and significant interest and
opportunities are now seen across the marketplace. 
Important investments continued during 2003 to enhance the
capability of the business. A programme of replacing older cutting
equipment continued with a number of new computerised panel
saws being installed, which allowed us to benefit from higher value-
added sales and additional new cutting equipment will be added in
2004. A programme to upgrade and replace the information
technology equipment used in Laird Plastics was also completed
during the year. The introduction of new sales order and e-business
software is providing additional internet based customer service and
company wide knowledge management, via central call reporting
capabilities. At the end of 2003 Laird Plastics launched the “Laird
University”, an internal organisation that will provide recruitment,
training, management development and quality control for the
business, in order to meet the increasingly demanding customer
expectations for service and support. 
A Solid Platform for Long Term Growth
Laird Plastics has created a solid platform for long term growth in
its business, while the beginnings of a strengthening in demand
are emerging across a number of its market sectors. This, together
with the actions taken to strengthen and improve the business,
is expected to result in further progress being made in 2004
as well as providing a platform for future growth, firmly establishing
Laird Plastics as a market and performance leader in North
American plastics distribution. 
0
30
60
90
Turnover 
£m
Operating profit
£m
2003
2002
0
1
THE LAIRD GROUP PLC 21
150
120 4
3
2
5 Finance Director’s report
The cash spend on exceptional items was £1.6 million, considerably
less than the charge to the profit and loss account, as £2.5 million
of cash will not be spent until 2004 and the charge also included
the write down of assets on which there is no cash impact. 
After a reduction in exceptional costs of almost 60% in 2003,
a further significant reduction in exceptional costs should occur
in 2004.
Loss on Disposal
There was no loss or gain on disposal in 2003 compared 
with a loss of £58.8 million in 2002, £47.9 million of which related
to the divestment of Fullarton. The 2002 loss included a write back
of £28.4 million of goodwill previously written off to reserves. 
Interest Paid and Received
The net interest charge fell from £4.9 million to £4.0 million with
the Group benefiting from the lower interest rate environment as
well as the translation of US$ interest costs into Sterling. 
Our US$ Private Placement notes have fixed interest coupons and
account for £3.4 million (2002, £4.1 million) of the interest charge.
The interest charge on the balance of the borrowings, which are
largely in US$ but at variable interest rates, was £2.2 million and
this was offset in part by £1.6 million of interest received, mostly
on Sterling deposits.
Taxation
The underlying tax rate on profit before exceptional items, 
goodwill amortisation and tax has fallen from 23% in 2002 to 
18% in 2003. Profits in the USA were subject to a low tax charge
due to a combination of factors including the utilisation of tax
losses and the deduction of tax allowances including goodwill
amortisation which, under US tax legislation, is tax deductible. 
There was an overall taxation credit of £2.9 million (2002 charge,
£5.8 million) after an exceptional tax credit of £8.5 million. This tax
credit arose because a number of issues relating to potential tax
exposures were resolved, including an exposure relating to a case
brought against the Company by the Inland Revenue on which the
House of Lords ruled in Laird’s favour. 
Cash Flow
There was an excellent trading cash flow surplus of £38.2 million.
This was in excess of the healthy £30.2 million surplus achieved in
2002. Working capital continued to be tightly managed which led
to a cash inflow even though the Group’s turnover was higher
towards the end of 2003 than it was in the same period in 2002.
The recovery of tax paid in previous years contributed to the lower
than normal tax cash outflow. 
Results Overview
Turnover from continuing operations increased from £424 million 
in 2002 to £429 million in 2003. Movements in exchange rates 
on the translation of currencies reduced turnover by £29 million.
The full effect in the year of acquisitions made in 2002 and during
2003, less the impact of divestments in 2002, added a net
£18 million to turnover. 
Profit before exceptional items, goodwill amortisation and tax
increased by 27% to £37.4 million from £29.4 million in 2002 and
was up 18% on the £31.8 million from continuing operations in
2002. Movements in exchange rates on the translation of foreign
currencies into Sterling reduced profits on the same basis by
£2.9 million, while the full year effect of acquisitions made in 2002
and 2003 contributed £3.0 million.
Goodwill Amortisation
Amortisation of goodwill during the year amounted to £10.6 million,
the same charge as in 2002.
Exceptional Items
Exceptional costs of £5.9 million were charged during the year.
Over £4 million of this charge was incurred by Laird Technologies in
consolidating production in Europe into a new plant in the Czech
Republic and just under £2 million was incurred by Laird Security
Systems in rationalising plant capacity in the UK. 
22 THE LAIRD GROUP PLC Pensions
The Group has continued to account for pensions according to
SSAP 24 but has also made the disclosures as required by
FRS 17. 
There is a deficit of £0.9 million (2002 surplus £1.8 million) on a
SSAP 24 basis, which requires that deficits should be amortised
over the remaining average working lives of active members. 
On a FRS 17 basis the deficit has increased from £7.1 million at
the end of 2002, to £8.0 million, £5.6 million net of tax. The increase
in asset values in the year has been more than offset by the
increase estimated for liabilities following a rise in the inflation 
and a reduction in the corporate bond rate assumptions used 
to compute liabilities. If FRS 17 was to be fully adopted, the net
after-tax deficit of £5.6 million would be deducted from reserves.
The Group does not currently expect to have to make a significant
increase to the current level of contributions to the schemes.
Currency
The Group’s profits are affected by the translational effect of
currency movements on translating overseas profits into Sterling
for reporting purposes. The actual transactional effects, on cross
border transactions which involve the sale of goods or services in
currencies foreign to a Group entity, are not significant.
Average exchange rates during the year were 1.64 for the US
Dollar (2002, 1.48) and 1.44 for the Euro (2002, 1.59). 2003 year
end rates were 1.79 for the US Dollar and 1.42 for the Euro,
compared with 1.61 and 1.53 respectively at the end of 2002.
Had exchange rates remained constant with 2002, the Group’s
turnover would have been £29 million higher in 2003, while profit
before exceptional items, goodwill amortisation and tax would
have been £2.9 million higher. Movements in exchange rates also
had a considerable impact on the balance sheet. The majority of
the Group’s assets are held overseas and these are hedged in part
by foreign currency loans. Due regard is given to the adequacy of
the capitalisation levels of foreign subsidiaries and tax considerations
in order to obtain relief for interest charges. The translation impact
of exchange rate movements at the end of 2003 compared with
the end of 2002, reduced net borrowings by £6.6 million but also
reduced shareholders’ funds by £11.6 million.
International Financial Reporting Standards (“IFRS”)
In 2003, the Group has been assessing the changes that will be
required under IFRS in order to plan the transition from
UK Accounting Standards and to be in a position to report its
results under IFRS for the year to 31 December 2005.
Jonathan Silver
Finance Director
Analysis of Cash Flow
£m £m
Operating profit before interest and tax* 41.4
Depreciation and asset write downs 12.8
Less exceptional asset write downs (1.8) 11.0
Decrease in working capital 7.5
Less movement in accruals for 
exceptional items (2.5) 5.0
Capital expenditure less disposals (12.6)
Interest and taxation (6.6)
Trading cash flow surplus 38.2
Dividends (12.0)
Trading cash flow surplus after dividends 26.2
Acquisitions and disposals (including 
net borrowings acquired) (25.3)
Exceptional costs (1.6)
Exchange translation movements 6.6
Other 0.6
Reduction in net borrowings 6.5
*and before exceptional items and goodwill amortisation
The trading cash flow surplus after dividends of £26.2 million
equates to cash inflow before management of liquid resources and
financing shown on page 40, but after adding back the outflow on
exceptional costs (£1.6 million) and the outflow on acquisitions
and disposals.
The trading cash flow surplus after dividends fully covered net
expenditure on acquisitions and disposals of £25.3 million and with
a high proportion of borrowings denominated in US$, there was a
£6.6 million reduction due to exchange translation movements.
Shareholders’ Funds
Shareholders’ funds at the year end were virtually unchanged at
£200.8 million. Retained profits in the year were £11.5 million but
were offset by exchange losses on translation of overseas assets.
Borrowings and Debt Facilities
Net borrowings at 31 December 2003 were £60.1 million, 30% of
shareholders’ funds, comprising gross borrowings of £97.4 million
and cash of £37.3 million.
At the year end the Group had £37.2 million ($66.5 million) of US$
fixed interest Private Placement notes in issue, the equivalent of
62% of net borrowings and 38% of gross borrowings. A total of
£9.3 million ($16.5 million) of the loan notes are being paid down 
in three equal instalments between 2004 and 2006 with the
balance of £27.9 million ($50 million) subject to bullet repayments
in 2008, 2012 and 2014. 
The other borrowings amounting to £60.2 million (£97.4 million
less the placement notes of £37.2 million), were largely represented
by drawings on committed facilities, which were 35% utilised at the
year end. 
During 2003, the Group put in place £140 million of new five year
committed bilateral revolving credit facilities which will not expire
until 2008.
THE LAIRD GROUP PLC 23 Board of Directors
24 THE LAIRD GROUP PLC
Nigel Keen
Chairman. MA, FCA.
Aged 57. Appointed a
non-executive director 
in 1993 and Chairman 
in June 2000. A member
of the Nominations 
and Remuneration
Committees, also a
member of the Audit
Committee during 2003.
Chairman of Axis-Shield
plc, Oxford Instruments
plc and Deltex Medical
Group plc. 
Peter Hill
Chief Executive. 
BSc, MBA, Chartered
Engineer. Aged 51.
Appointed Managing
Director in 2001 and
Chief Executive in March
2002. Previously held
senior management
positions with Invensys
plc and BTR plc. 
Non-executive director 
of Meggitt plc and
Oxford Instruments plc.
Jonathan Silver
Finance Director. 
BA, Chartered
Accountant. Aged 46.
Joined Laird in 1986 and
appointed to the Board
as Finance Director in
1994. Previously Group
Treasurer and Corporate
Development Manager.
Geoffrey Drabble
Executive Director. BSc.
Aged 44. Joined Laird 
in 1997 as Managing
Director of Laird Security
Systems. Appointed 
a director in 2001.
Previously held senior
management positions
with Black & Decker.
John McDowall CBE
Non-executive director.
BSc. Aged 61. Appointed
in 1998. Chairman of the
Remuneration Committee
and a member of the
Nominations and Audit
Committees. Chairman 
of Techniquest and a
member of the Council 
of the University of
Glamorgan. Formerly 
an executive director 
of British Steel plc and
Chairman of Avesta
Sheffield AB.
David Morton
Non-executive director. 
MA. Aged 74. Appointed
in 1998. A member of the
Remuneration Committee,
also a member of the Audit
Committee during 2003.
Mr Morton will become 
the senior independent
non-executive director 
in May 2004. Formerly
Chairman and CEO of
Alcan Aluminium Limited.
Non-executive director 
of Methanex Corporation,
Canadian Overseas
Packaging Industries and
the Trust Companies of
the Bank of Nova Scotia.
Sir Geoffrey Owen
Non-executive director.
BA. Aged 69. Appointed
in 2000. A member of
the Remuneration and 
Audit Committees.
Senior Fellow at the
Institute of Management,
the London School of
Economics. Formerly
Editor of the 
Financial Times.
Mark Smith
Non-executive director.
FCA. Aged 64. Appointed
in 1993. Deputy
Chairman, Chairman of
the Audit Committee and
the senior independent 
non-executive director of
the Board; also a member
of the Remuneration and
Nominations Committees.
Previously Executive
Director and Vice
Chairman of S.G. Warburg
& Co. Non-executive
director of Renold plc. 
As announced last year
Mr Smith will be retiring
at the 2004 Annual
General Meeting.
Dr William Spivey
Non-executive director.
BS, MS, PhD. Aged 57.
Appointed in September
2002. A member of the
Remuneration
Committee, also a
member of the Audit
Committee during 2003.
Formerly President and
CEO of Luminent, Inc.,
having previously held
senior management
positions with AT&T
Corporation and 
Lucent Technologies.
Non-executive director of
the Raytheon Company,
Novellus Systems,
Lyondell Chemical and 
Cascade Microtech. Directors’ report
for the year to 31 December 2003
The Laird Group Public Limited Company is a holding company. The principal activities of its subsidiary undertakings (“subsidiaries”)
during the year were the design, manufacture and supply of products and services to the electronics and the residential building
industries and the distribution of plastics products in North America. The Chairman’s statement, Chief Executive’s review and Finance
Director’s report should be read in conjunction with this report. An analysis of the Group turnover, profit and capital employed by activity
and geographical location is shown in note 1 on page 46.
Results and dividend
The Group profit for the year before exceptional items, goodwill amortisation and taxation was £37.4m (2002 £29.4m). The
recommended final dividend is 5.6p per ordinary share to be paid on 4 June 2004 to ordinary shareholders registered as members of the
Company at the close of business on 7 May 2004 making a total dividend for the year of 8.6p per ordinary share. 
Share capital
Exercise of options
In the year to 31 December 2003, the issued share capital of the Company was increased by the issue of 290,000 ordinary shares
following the exercise of options under the Company’s 1994 executive share option scheme. Details of the share capital and of options
outstanding at 31 December 2003 are shown in note 26 on page 60.
Disapplication of pre-emption rights
At the Annual General Meeting held on 9 May 2003, the directors were empowered to allot shares for cash otherwise than pro rata to
existing shareholders in certain limited circumstances. It is proposed that this power should be renewed for a further period until the
conclusion of the Annual General Meeting in 2005 or, if earlier, 7 August 2005 and the necessary Special Resolution, together with
further details, is set out in the separate Notice of Meeting sent to shareholders with the Annual Report and Accounts.
Authority for purchase of own shares
At the Annual General Meeting held on 9 May 2003, a Special Resolution was passed to authorise the Company to make market
purchases (within the meaning of section 163 of the Companies Act 1985) of any of its ordinary shares of 25p each. As at 10 March 2004
no shares have been purchased. It is proposed that approval is sought from shareholders to renew this authority at the forthcoming
Annual General Meeting for a further period until the conclusion of the Annual General Meeting in 2005 or, if earlier, 7 August 2005.
Directors
Re-election of directors 
The directors as shown on page 24 were all directors throughout the year to 31 December 2003. Mr Smith will be retiring as a director
at the conclusion of the Annual General Meeting. The Articles of Association require any director who has attained the age of seventy to
seek annual re-election, and accordingly Mr D Morton and Sir Geoffrey Owen (who will be seventy by the time of the Annual General
Meeting) will retire in accordance with Article 138 and will offer themselves for re-election at the Annual General Meeting. The Board
believes that both directors continue to make a valuable contribution, in particular Mr Morton brings his extensive North American and
industrial business experience. Sir Geoffrey Owen’s experience in global economic issues and knowledge of industrial and corporate
matters provides an important perspective and a useful balance to the Board, it therefore wishes them to continue as directors. Mr Drabble,
Mr Hill and Mr McDowall will retire by rotation and, being eligible, will offer themselves for re-election. None of the non-executive directors
offering themselves for re-election has a service contract with the Company or any of its subsidiaries. The executive directors offering
themselves for re-election have service contracts with the Company which are terminable on not less than twelve months notice. 
Directors’ interests
No director had, in the year to 31 December 2003, a material interest in any contract of significance with the Company or any of its
subsidiaries. Directors’ shareholdings at 31 December 2003, including the contingent interest in shares held in trust awarded under the
Group’s Performance Incentive Scheme, are shown below. These interests were unchanged at 10 March 2004. Details of share options
are shown in the Directors’ remuneration report on pages 31 to 36.
Ordinary Shares
Shareholdings Contingent interest
31.12.03 1.1.03 31.12.03 1.1.03
N J Keen 107,400 107,400 – –
G Drabble 1,644 1,644 11,166 11,166
P J Hill 20,000 3,500 – –
J B McDowall 5,000 5,000 – –
D Morton 5,000 5,000 – –
Sir Geoffrey Owen 5,000 5,000 – –
J C Silver 56,751 56,751 37,965 37,965
M A Smith 12,000 12,000 – –
Dr W R Spivey 5,000 5,000 – –
THE LAIRD GROUP PLC 25 Directors’ report (continued)
for the year to 31 December 2003
Employment policy
The Group is organised on a decentralised basis with directors of subsidiary companies responsible for developing employment policies
appropriate to the size, organisation and location of their businesses. The Group is committed to providing equal opportunities in terms
of recruitment, training and career development of all employees, including those with disabilities. Subsidiaries are encouraged to make
all employees aware of the financial and economic factors affecting the performance of their companies.
A copy of the Group’s Employment policy statement is available on the Company’s website or on request from the Company.
Basis of preparation of the accounts
As set out in the statement of directors’ responsibilities on page 37, the accounts have been prepared on a going concern basis.
A statement on going concern relating to a business requires judgement at a point in time about future events which by their nature are
inherently uncertain. The directors have a reasonable expectation that the Company and the Group have adequate resources to continue in
operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the accounts.
Supplier payment policy
The Group requires its subsidiaries to negotiate clear and satisfactory arrangements for the payment of suppliers, as part of the overall
terms and conditions of the supply, and to make payment accordingly. At the year end there were 55 days of purchases outstanding for
the Group’s UK subsidiaries.
Auditors
It is recommended that Ernst & Young LLP be reappointed as auditors.
Shareholders
At 31 December 2003 there were 4,793 shareholders.
Substantial equity interests
Pursuant to the requirements of section 198 of the Companies Act 1985, as at 2 March 2004 the Company had received the notifications
of beneficial interests of 3% or more in the Company’s issued share capital as set out below. The requirements of section 198 of the
Companies Act specify that notifications of holdings of over 3% only have to be made when a full percentage point increase or decrease
in the beneficial interest occurs, and that there is no notification requirement in respect of holdings of less than 3% in individual unit trusts
even where the aggregation of these holdings amounts to a beneficial interest in excess of 3%. There is also no notification requirement in
respect of discretionary management of shares without a beneficial interest. However, when the total holding of material and non-material
interests exceeds 10% of the Company’s issued share capital, there is an obligation of disclosure with respect to the full share holding.
Number of 
Shares Percentage
Barclays plc 14,422,160 10.07
Franklin Resources, Inc. 8,724,660 6.09
Standard Life Group 7,504,152 5.24
Zurich Financial Services Group 5,858,889 4.10
Legal & General 4,919,074 3.43
Prudential plc 4,618,743 3.22
The Trustees of BT Pension Scheme 4,523,969 3.16
Donations
In the year to 31 December 2003, the Group gave £83,000 for charitable purposes (2002, £57,000). 
By Order of the Board
D J L HUDSON
Secretary
10 March 2004
Registered office
3 St James’s Square, London SW1Y 4JU
Registered in England No. 55513
26 THE LAIRD GROUP PLC Corporate governance report
for the year to 31 December 2003
The directors confirm that the Company has complied throughout the year with the provisions set out in section 1 of the Combined
Code. In July 2003, the Financial Reporting Council published a new Combined Code on Corporate Governance (“the new Code”) which
applies to the Company for the year commencing 1 January 2004. The directors have taken steps to ensure that the main and
supporting principles of the new Code have been implemented where appropriate.
The Board
The responsibilities and objectives of the Board
The Board is appointed by the shareholders who are the owners of the Company. The Board’s principal responsibility is to act in the best
interests of the shareholders as a whole within the legal framework of the Companies Act. The Board establishes the aims and objectives
for the Company, approves the strategic direction and plans and the operating budgets proposed by the Chief Executive, and monitors
performance against them. The Board is also responsible for identifying, evaluating and managing the key risks faced by the Company,
for exercising proper and appropriate corporate governance, for establishing and ensuring the effectiveness of the Company’s systems
of internal control and reviewing management performance. Through the Chief Executive, the Board has regard to the necessary financial
and human resources required to meet the Company’s objectives.
The composition of the Board
The composition of the Board is outlined on page 24. The Board comprises an appropriate mix of executive and non-executive directors,
and there is a clear written division of responsibility between the Chairman and the Chief Executive which has been agreed by the Board.
Mr M A Smith, the Deputy Chairman and the senior independent non-executive director, retires at the Annual General Meeting. Mr D Morton
will become the senior independent non-executive director on 7 May 2004. All of the non-executive directors are considered by the Board
to be independent. Nigel Keen, the Chairman, was appointed to the Board as an independent non-executive director in 1993 and was
still considered to be independent when appointed Chairman of the Board in 2000, as required by the new Code. At the Annual General
Meeting every year at least one third of the directors retire from office. Such rotation of directors ensures that directors submit themselves
for re-election regularly, and at least every three years.
The operation of the Board
The Board meets at least eight times a year. A schedule of meetings and principal matters to be discussed is set out at least twelve
months in advance. The Board also delegates certain of its responsibilities to Committees which are described below. The Board
determines the membership and Chairmanship of the Committees. Minutes of those Committee meetings are circulated to Board
Members prior to each Board Meeting. All directors receive Board Papers prior to the Meetings which include detailed financial information
and a comprehensive operational overview from the Chief Executive. The Chairman and the non-executive directors meet at least twice a
year without the executive directors present and the senior independent director meets at least annually with the non-executive directors
without the Chairman present.
There is a schedule of key operational matters reserved for Board approval, including for example significant long term obligations
such as capital investments, acquisitions and divestments above certain levels, the raising of new capital and the entering into of loan
agreements. The Board delegates the day-to-day management of the business to the Chief Executive.
Communications with shareholders
The Laird Group, within the limits imposed by the Listing Rules, enters into a dialogue with institutional shareholders to develop an
understanding of their views and to communicate and explain the Company’s objectives. The Chief Executive and Finance Director 
meet regularly with shareholders and report to the Board following these meetings. The Company’s stockbroker periodically contacts
shareholders and provides feedback which is reported to the Board. In 2003 a formal survey, on a non-attributable basis, covering
eighteen of the Company’s larger shareholders was commissioned. Following presentations to analysts and major shareholders of the
interim and full year results, confidential exit polls are conducted by outside consultants and the results are reported to the Board.
The Chairman and the senior independent non-executive director make themselves available for meetings with shareholders.
The Board views the Annual General Meeting as an opportunity to communicate with private investors and institutional shareholders and
encourages them to attend. Shareholders are invited to ask questions and are given the opportunity to meet the directors informally after
the meeting. The Chairman gives a formal report on the Company’s progress at the meeting. The chairmen of the various Board
Committees are available to answer questions relating to their areas of responsibility. The number of proxy votes cast for, against or in
abstention on the resolutions are reported to the meeting and, following the 2004 Annual General Meeting, will be published on the
Company’s website. Copies of all press announcements are posted on the Company’s website.
Committees of the Board
Audit Committee
During the year, the Audit Committee, chaired by Mr M A Smith comprised the Chairman and all the non-executive directors. With effect
from 1 January 2004 the Audit Committee comprises Mr Smith, Sir Geoffrey Owen and Mr J B McDowall, and Mr Smith has continued
as Chairman of the Committee. The Board ensures that at least one member has recent and relevant financial experience. The Audit
Committee, which meets at least four times a year, is responsible for monitoring the integrity of the financial statements of the Company
which are relied upon by the Board. The Committee reviews The Laird Group PLC’s published financial statements. It also has
responsibility for reviewing the internal financial controls, and considers the scope and planning of internal and external audits and the
findings of the audits. The Chairman of the Board, the Finance Director and the external auditors are given notice of all meetings and may
be invited to attend and speak at any meeting. The Committee considers the appointment and terms of engagement of the external auditor
and assesses the independence of the external auditor and reviews the auditor’s policy for the rotation of audit partners. The Committee
assesses annually the effectiveness of the audit process, including a report on the audit firm’s own internal quality control procedures.
THE LAIRD GROUP PLC 27 Corporate governance report (continued)
for the year to 31 December 2003
The Committee also agrees the audit fee and recommends for Board approval a policy for non-audit services so as to ensure that the
provision of non-audit services does not impair the external auditors’ independence or objectivity. Details of fees for non-audit work are
set out in note 2 on page 47. The Committee recommends, through the Board, to the shareholders the re-election of the external 
auditor at the Annual General Meeting and the authority for the fixing of their remuneration. The Committee and the auditors meet
formally without any executive directors present at least once a year. The written Terms of Reference of the Committee are available from
the Company on request and will be on display at the Annual General Meeting.
Nominations Committee
The Nominations Committee consists of the Chairman and at least two non-executive directors. It is chaired by Mr N J Keen and currently
comprises the Deputy Chairman and the chairman of the Remuneration Committee of the Board. The Committee, in consultation with 
the Chief Executive, regularly reviews the structure, size and composition (including the skills, knowledge and experience) required of the
Board and makes recommendations to the Board with regard to any changes. At least annually the Committee reviews the performance
of the Chief Executive and reports to the Board. It is responsible for nominating, for the approval of the Board, candidates for appointment
to the Board having regard to the overall skills balance and composition of the Board. It reviews and advises upon succession planning
and takes into account the need to refresh the Board. The Committee is assisted by external search consultancies in identifying suitable
candidates. The written Terms of Reference of the Committee are available from the Company on request and will be on display at the
Annual General Meeting.
Remuneration Committee
The Remuneration and Options Committees of the Board were merged with effect from 1 January 2004 into one committee. 
The Remuneration Committee, chaired by Mr J B McDowall and currently comprising the Chairman, Mr N J Keen, and all the 
non-executive directors, meets at least twice a year and is responsible for recommending to the Board the Company’s general policy on
remuneration and in particular to determine the remuneration and benefits of the executive directors and the grant of all options and award
of shares under the Company’s Long Term Incentive Scheme. In accordance with the Terms of Reference of the Remuneration Committee,
the Chairman of the Board shall not be the chairman of the Committee. However, the Chairman, who fulfilled the independence criteria 
at the time of his appointment set out in the new Code on Corporate Governance, is a member of the Committee because the Board
considers it essential that he be involved in setting remuneration policy. The Remuneration Committee, excluding the Chairman,
determines the remuneration of the Chairman and the terms of his appointment.
The Chief Executive is given notice of all meetings, and at the request of the Chairman of the Committee, attends the meetings. In normal
circumstances, the Chief Executive is consulted on general policy matters and matters concerning the other executive directors and
employees. Further details on the Remuneration Committee are to be found in the Directors’ remuneration report on pages 31 to 36.
The written Terms of Reference are available from the Company on request and will be on display at the Annual General Meeting.
Administration Committee
The Administration Committee of the Board consists of any two or more directors and deals with items of a routine and administrative
nature. The written Terms of Reference are available from the Company on request and will be on display at the Annual General Meeting.
Performance of the Board
During 2003 the Board commenced a formal internal process in the form of questionnaires, the results of which were discussed by
the Board, for the evaluation of its performance. In 2004 the evaluation of the Board’s committees and of individual directors will
be undertaken.
Board attendance
The Board had nine meetings during 2003. During the year Mr Smith was unable to attend two meetings and Mr Morton was unable to
attend four meetings. Whenever a director is unable to attend a meeting, the director, if possible, consults with the Chairman prior to the
Meeting and is briefed by the Chairman after the Meeting.
There were three Audit Committee meetings during the year, Messrs Smith and Morton were unable to attend one meeting; in Mr Smith’s
absence the meeting was chaired by Mr Keen. Four meetings of the Remuneration and Options Committees were held. Mr Morton was
unable to attend one meeting. One meeting of the Nominations Committee was held, at which there was full attendance.
Internal control
The Laird Group PLC is an industrial holding company registered in the UK with businesses located overseas, as well as in the UK.
These activities are organised as subsidiary companies where the directors of these companies are appointed to manage within the
framework established by The Laird Group Board, as well as complying with local statutory and regulatory requirements. Overall
responsibility for the Group’s systems of internal control and reviewing their effectiveness lies with The Laird Group Board. Primary
responsibility for systems of internal control rests with the directors of the subsidiaries. The Group’s executive directors, all of whom are
based in the UK, are responsible for implementing Group policy and for monitoring the businesses and performance of subsidiary
companies and reporting to the Board thereon. 
An ongoing process for identifying, evaluating and managing the significant risks faced by the Group is in place and complies with the
guidance of the Turnbull Committee on internal control. This process has been in place for the full financial year and up to the date the
accounts were approved by the Board. Acquisitions during that period were subject to due diligence prior to their purchase and are
required to adopt the Group’s procedures thereafter. The systems of internal control are designed to manage rather than eliminate the
risk of failure to achieve business objectives as well as safeguarding the Group’s assets. However, these systems can only provide
reasonable and not absolute assurance against material misstatement or loss.
28 THE LAIRD GROUP PLC THE LAIRD GROUP PLC 29
Group operating rules are issued each year to the directors of subsidiary companies setting out their responsibilities and the procedures
to be followed to agree their commercial and financial objectives. These rules require approval for specific transactions and call for
accurate and relevant financial information to be delivered on a timely basis. The ability to identify risk is enhanced by the timely reporting
of management information and the short lines of communication with operating managers.
Subsidiaries submit their budgets annually to the Group’s executive directors. As part of this process they are required to identify the key
risks and opportunities that their businesses face and set out the strategies they will employ to manage the risks and exploit the
opportunities. The issues raised by the subsidiaries are reviewed by the Board. This process is supplemented by papers submitted to the
Board by the executive directors throughout the year and by meetings from time to time between the Board and the management of the
subsidiaries, some of which take place at the premises of the operating companies. The Chief Executive presents the Group’s business
objectives which are approved by the Board, and the Board also addresses those risks which affect The Laird Group as a whole. 
The Board instigates further reports and investigations, as it considers necessary. The Laird Risk Management Group (“RMG”), chaired by
an executive director, currently Mr Drabble, and with members drawn from the Group’s businesses examines all aspects of operational
risk within the Group. The RMG which met four times during 2003 reported to the Audit Committee but now reports to the Board. 
The principal objectives of the RMG are to identify potential risks, physical exposure and business interruption issues associated 
with each operating company’s business and their wider implications for the Group as a whole; to review business continuity planning
and emergency response procedures; to develop contingency plans and to oversee the implementation of remedial actions where
appropriate, and to continue to develop and ensure the implementation of best risk management practice throughout the Group.
The RMG also oversees Health, Safety and Environmental issues using external advisers to assist where appropriate. Further details
on the RMG are set out in the Corporate social responsibility report set out below.
The Audit Committee reviews The Laird Group PLC’s published financial statements. It also has responsibility for reviewing the internal
financial controls and considers the scope and planning of internal and external audits. It reviews reports on internal control including the
overall management of financial risk within the Group. These include reports by the Finance Director, the results from internal audits and
comprehensive self-assessment control reviews by subsidiary management. As part of their audit, the external auditors, to the extent they
consider necessary to support their audit opinion, review and test the systems of internal control and the data contained in the accounts,
including an independent and objective review of the approach of management to the reporting of the operating results and financial
condition. The auditors have confirmed that in their opinion the subsidiaries, and the Group, are complying with the Companies Act 1985
requirement to keep proper books and records.
Corporate social responsibility
for the year to 31 December 2003
The Group’s businesses and its activities involve a wide community of stakeholders, including investors, employees, customers, suppliers
and local communities. 
Business Ethics
During the year a new Ethics Policy statement was approved by the Board. The Laird Group PLC believes that high standards of
business ethics are critical in today’s business world and therefore places high priority on compliance with all legislative and regulatory
requirements, and on the maintenance of high ethical standards, within each of the territories and jurisdictions in which it conducts its
business.
The Laird Group PLC, its Divisions and businesses (“the Group”) commits to conducting itself, and expects all employees to conduct
themselves, in an honest, ethical manner in all dealings on its behalf and to behave professionally and with integrity and fairness. The
Group applies these same standards to all business dealings with customers, suppliers and stakeholders.
The Group’s policy is that businesses should compete enthusiastically and fairly in the marketplace and must comply with the relevant
competition laws of each country in which it operates.
A copy of the Ethics Policy statement is available on the Company’s website or from the Company on request.
Health, Safety and Environmental
The Group is committed to providing a safe working environment for its employees and the Group maintains a proactive 
communications strategy between all employees to stimulate continuous improvement and promote and develop good health, safety
and environmental practices.
The Laird Risk Management Group (“RMG”), chaired by an executive director, currently Mr Drabble, and with members drawn from the
Group’s businesses examines risks within the operations and in particular oversees Health, Safety and Environmental matters. The RMG,
which met four times during 2003, reported to the Audit Committee during that period but now reports to the Board as a consequence
of the reorganisation of the Board and its Committees.  30 THE LAIRD GROUP PLC
Corporate social responsibility (continued)
for the year to 31 December 2003
During the year comprehensive Health, Safety and Environmental audits were carried out at all the UK and the majority of the North
American sites. The results of the Health, Safety and Environmental audits and their follow up are monitored by the RMG. Audits of the
Group’s facilities in China will be carried out in 2004. During 2003 a representative from each UK business qualified with an IOSH
certificate in Working Safely and an EEF certificate in Environmental Awareness.  
Although each business has its own Health and Safety committee which has representatives from management and employees it is
recognised that there are benefits of sharing knowledge within the Group and in the UK a Health and Safety Forum which has
representatives from each business meets twice yearly. Issues discussed during the year included work related safety and accident
statistics. Across the Group, Health and Safety training is provided focusing on perceived risk within each business.
Environmental Policy
The Group is committed to pursuing high standards of environmental performance including the maintenance of safe and healthy
working environments.
Detailed policies are developed and implemented by the operating divisions and their subsidiary businesses to reflect their specific
trading activities and the associated risks. The Group’s minimum requirements are for its businesses to comply with local legislation and
to operate continuous improvement programmes, to ensure that efficient use is made of all resources, including energy, water and raw
materials, and that emissions are restricted to within best practice levels, waste is minimised and accidents prevented through
comprehensive training. The goal is to achieve the requirements of ISO 14001 where appropriate by integrating environmental
understanding and control into systems and procedures under the direction of senior management, with the full support of employees
and the involvement of suppliers and customers. The majority of the Group’s main manufacturing facilities are ISO 9001 or ISO 9000
compliant.
The Group undertakes a rolling programme of environmental audits covering all of the Group’s manufacturing sites with external
environmental consultants. 
A number of specific environmental initiatives have been carried out, for example;
• One of Laird Security Systems’ UK businesses reduced its solid waste disposal to landfill by 23%; this was achieved through root cause
analysis of scrap at source resulting in preventative action. The same business, as a member of Target 2010 and in line with the UK
Government’s commitment to the Kyoto agreement for reduction in greenhouse gas emissions, committed to a year-on-year reduction in
CO
2
emissions from their sites. As a result of a number of initiatives, this business met the 2010 target within just two years.
• Initiatives at a second site resulted in 23 tonnes of polythene/card and 38 tonnes of foam scrap being recycled, while waste recycling
initiatives introduced during the year at a third business should result in a £30,000 saving in 2004.
• Laird Technologies in St Louis, USA installed a new highly cost-effective waste treatment system during the year to process the silver
and tin waste generated by the conductive foam manufacturing process. The new system allows the accumulation, precipitation and
clarification of the hazardous waste and precludes the need to have the waste shipped and treated offsite at a licensed facility. Using
the new system solid metals are recycled in industry rather than being placed in a landfill.
A copy of the Group’s Health, Safety and Environmental Policy statement is available on the Company’s website or from the Company
on request.
Charitable Donations and Community Affairs
The well-being of the communities in which the Group operates is important to its long term development and success. 
During the year the Group gave £83,000 to charity. The Group supported a number of large charities for example, Marie Curie, Age
Concern and Save the Children Fund. The subsidiaries of the Group, many of which are long-established in their communities, support
local initiatives particularly working with schools and sports teams. Examples are;
• Donations of waste paper and aluminium cans to a local hospice to enable it to get cash from recycling, and also the collection of
aluminium cans for donation to Habitat for Humanity in the USA.
• Sponsorship of local schools, for example in fire-awareness training.
•A subsidiary raising money for a charity for terminally ill children by arranging a football match and other events with its
transport company.
• Support of the Cardinal Wiseman School in Birmingham, England and through financial assistance Laird helped it achieve its
Technology application under the Technology Colleges Trust Initiative. In addition to financial assistance, a director of Laird Security
Hardware has been appointed as a School Governor.
• There are many other instances of support to charity including participation in ‘Jeans for Genes’ and ‘Red Nose’ Days in the UK.
Some of these initiatives are on a small scale but the ideas often come from employees, supported by management and are indicative
of the desire of employees to become involved. THE LAIRD GROUP PLC 31
Directors’ remuneration report
for the year to 31 December 2003
The Directors’ remuneration report sets out the Company’s policy on the remuneration of executive and non-executive directors together
with details of directors’ remuneration packages and service contracts.
The Remuneration Committee, which met four times during the year, is responsible for recommending to the Board the Company’s
general policy on remuneration and in particular to determine the remuneration packages of the Chairman and the executive directors,
and the grant of all options and awards of shares. 
The members of the Committee are appointed by the Board and the membership of the Committee will be reviewed at least annually.
The Chairman of the Committee will be appointed by the Board and will not be the Chairman of the Board. The Chief Executive is given
notice of all meetings and at the request of the Chairman of the Committee, attends the meetings. The Chief Executive may request that
he attends and speaks at Committee meetings. In normal circumstances, the Chief Executive will be consulted on general policy matters
and matters concerning the other executive directors and employees. The written Terms of Reference are available from the Company
on request and will be on display at the Annual General Meeting. The Remuneration Committee, chaired by Mr J B McDowall, comprises
the Chairman, Mr N J Keen, and MrJB McDowall, Mr D Morton, Sir Geoffrey Owen, Mr M A Smith and Dr W R Spivey, all independent
non-executive directors. Mr Keen, who as Chairman fulfilled the independence criteria at date of appointment set out in the new Code
on Corporate Governance, is a member of the Committee because the Board considers it essential that he be involved in setting
remuneration policy. Mr D J L Hudson, the Company Secretary, acts as Secretary to the Committee. The Board, as a whole, is
responsible for setting the remuneration of the non-executive directors. 
The Remuneration Committee over the past year has appointed Watson Wyatt LLP and New Bridge Street Consultants to provide
independent external professional advice. Watson Wyatt also provide pension actuarial services to The Laird Group and to the Trustees
of two Laird Group pension schemes. The Remuneration Committee has also sought the views of the Chief Executive, Mr Hill, during the
year. In addition, shareholders’ representative bodies and certain of The Laird Group’s principal shareholders were consulted in
connection with the new framework for share incentive awards which was approved by shareholders in May 2003.
Remuneration Policy
The Remuneration Committee has established a policy on the remuneration of executive directors and the Board has established a 
policy for the non-executive directors for the current and subsequent financial years.
Executive Directors 
The current policy for deciding appropriate levels and forms of remuneration for the executive directors is to have an incentive driven
remuneration package which promotes the alignment of interests of executive directors and shareholders. That policy is based upon the
following principles:-
• the reward opportunity offered to executive directors should be sufficiently competitive to recruit and retain management of the
appropriate calibre and experience; and
• the need to provide a total compensation package which reflects the international complexity of the Group’s operations.
Performance linked incentives are a key component of the total remuneration package and during the year, the Remuneration Committee
proposed a new framework for share incentive awards, encompassing new executive share option plans and a Long Term Incentive Plan,
which was approved by shareholders at the 2003 Annual General Meeting. A summary of these arrangements is set out below.
Service Agreements
Each of the executive directors has a service agreement. New service agreements were entered into with effect from 8 March 2004. In line
with the Company’s policy the executive directors’ service agreements are not for a fixed term and provide for no less than twelve months
written notice of termination from either party. The terms of employment terminate automatically at the executive’s Normal Retirement Date
of age sixty. The Company’s policy on termination is to comply with the contractual terms and conditions set out in the service agreement.
The Company may, at its election, make a payment in lieu of notice. The payment would be calculated as the total of the director’s basic
salary plus the value of his benefits, in each case by reference to the period of the unexpired notice of termination. The arrangements for the
executive directors which provided additional compensation in the event of a change of control of The Laird Group (which were disclosed in
the 2002 Annual Report and Accounts) have been terminated with effect from 1 January 2004.
The non-executive directors do not have service contracts but their appointments are subject to review every three years and the rotation
provisions of the Company’s Articles of Association.
Shareholding Guidelines
Shareholding guidelines, under which executive directors will be expected to retain as shares all of the after-tax profit on the gains made
on the vesting of Long Term Incentive Plan awards and the exercise of existing or future executive share options, until they have acquired
a shareholding equal in value to their basic salaries, were introduced in 2003.
Non-Executive Directors
The Laird Group’s policy is to establish and maintain a body of non-executive directors with a breadth of international skills and
experience that is relevant to The Laird Group’s global businesses. In this context, it is the Board’s policy for the non-executive directors
to be paid a level of fee that reflects market conditions and is sufficient to attract individuals with appropriate knowledge and experience. 32 THE LAIRD GROUP PLC
Directors’ remuneration report (continued)
for the year to 31 December 2003
Executive Directors’ Remuneration
Basic Remuneration
The executive directors receive base salary, annual performance awards, pensions and other benefits, and long term performance
awards. Base salaries, benefits and performance awards of the executive directors are reviewed annually by the Remuneration
Committee. Base salaries are determined with reference to an appropriate comparator group of companies which is reviewed annually.
Benefits comprise the provision of a car, life, disability and health insurance, participation in the annual performance scheme and a
pension. A contributory pension at the age of sixty of up to two thirds of base salary is provided, related to the length of service, together
with a dependant’s pension on death in service or retirement. Neither performance incentive awards nor benefits in kind are pensionable.
Emoluments of executive directors showing breakdown between basic and performance related remuneration:
Performance
Salaries Related
and fees Benefits Remuneration Total
2003 2002 2003 2002 2003 2002 2003 2002
£000 £000 £000 £000 £000 £000 £000 £000
P J Hill* 389 359 16 20 299 171 704 550
G Drabble 258 246 17 15 199 193
†
474 454
J C Silver 258 246 9 11 199 113 466 370
* Mr Hill, previously Managing Director, was appointed Chief Executive in March 2002.
†
Mr Drabble received a payment of £66,700 in respect of a medium term bonus scheme, established prior to his appointment as a
director, based on the performance of Laird Security Systems over the three year period ending in 2002. No further payments are due
under this scheme.
Annual Performance Incentive Awards
The executive directors participate in an annual Group Performance Incentive Scheme. Prior to 2003, beneficiaries of the scheme could
elect to take all or part of the award in the form of Laird Group shares instead of cash. If this election was made, the Company 
co-invested a further 50% of the number of shares. All the shares vest with the beneficiary if they are held in trust for a minimum of three
years. The remaining shares for Messrs Drabble and Silver of 11,166 and 37,965 relating to 2000 will vest on 27 March 2004. There are
no qualifying performance conditions for vesting as the award was dependent upon historical performance. Following the shareholder
approval of the new share incentive arrangements referred to above, the Company’s co-investment is no longer available. The awards
in 2003 for the executive directors were determined by the Remuneration Committee. Up to a maximum of 75% of base salary could be
earned. The level of the award for 2003 took account of the improvement in financial performance and the achievement of targets and
progress in meeting the strategic objectives of the Group as well as the improvement in total shareholder return.
Pensions
G Drabble, P J Hill and J C Silver are members of a Group contributory defined benefits plan, which is supplemented, where necessary,
by unfunded arrangements to maintain the same level of benefits as if the earnings cap did not apply. The main benefits are a pension 
at age sixty of two thirds final salary, excluding bonuses and other benefits, and dependent on service; a dependant’s pension of 60% 
of the member’s pension on death in retirement; on death in service, a lump sum of four times salary and a dependant’s pension of 20%
of salary or 60% of the member’s expected pension if higher. The Government’s proposed changes to the tax regime applying to private
pension schemes to take effect from 6 April 2005 are being reviewed.
Pensions in payment are guaranteed to increase by the lesser of the increase in the retail price index or 8.5% per annum compound.
Transfer values provided on leaving service do not include any allowances for discretionary benefits.
Increase
Transfer Increase in accrued Transfer
value of Accrued in deferred pension value of Change
accrued Directors’ deferred pension during the accrued in transfer
Age at pension Contributions Service at pension at during year (net pension at value over
31.12.03 at 1.1.03 in 2003 31.12.03 31.12.03* the year of inflation) 31.12.03 the year**
£000 £000 (yrs) £000 p.a. £000 £000 £000 £000
G Drabble 44 233 5 6 51 12 11 363 125
PJ Hill 51 115 5 2 27 13 13 279 159
JC Silver 46 572 13 17 97 11 8 773 188
*  Payable at Normal Retirement Date.
** After deduction of directors’ contributions. THE LAIRD GROUP PLC 33
Long Term Incentive Plan
The Long Term Incentive Plan involves the award of shares which only vest after the achievement of demanding performance targets
over three years.
Executives are eligible for annual awards of shares. The maximum annual award value under the Plan is one times basic salary. In setting
the level of awards the Remuneration Committee takes into account options granted to executives under the 2003 executive share
option plans in the same financial year.
The extent to which awards granted under the Plan in 2003 vest will be determined by reference to the Company’s total shareholder
return relative to FTSE 250 companies (excluding investment trusts) and the following targets will apply:
These performance conditions will be measured only over a single three year period. There is no provision for retesting. In addition,
no awards will vest unless the Remuneration Committee is satisfied that there has been a sustained improvement in the Company’s
underlying financial performance.
The Long Term Incentive Plan may use either market purchased shares or new issue shares, provided that any new shares issued will
count against the overall dilution limit. During 2003, awards under the plan took the form of nil cost options over existing shares held in
the ESOP. Further details on the ESOP are on page 35. The amount charged to the profit and loss account during the year in respect of
the Long Term Incentive Plan granted to the directors was £233,000.
The directors’ interests in the Long Term Incentive Plan are as follows:
Granted Vested
1.1.03 in 2003 in 2003 31.12.03
G Drabble – 96,000 – 96,000
P J Hill – 145,000 – 145,000
J C Silver – 96,000 – 96,000
The above awards of nil cost options over existing shares were granted on 2 June 2003 (calculated with reference to a share price of
207p, the closing mid-market share price on 30 May 2003) and will be exercisable between 2 June 2006 and 2 June 2008, to the
extent to which the performance criteria are met.
Share Options
The executive directors have outstanding options under the 1994 Executive Share Option Scheme and the 2003 Executive Share 
Option Plan (No.1). In May 2001 changes to the basis for granting options to executive directors and other employees were agreed by
shareholders at the Annual General Meeting. The main change was to alter the basis for calculation of the maximum grant of options to
the equivalent of shares with a market value at the time of grant of up to one times salary in any one year and up to two times salary in
special circumstances, such as the recruitment or promotion to a key management position. 
Following the move to annual awards in 2003 the date on which awards are made is being harmonised to bring the timing more into line
with the Company’s financial year. The exercise of all options granted to UK employees since 1994 has been subject to meeting
performance criteria set by the Committee. The criteria used has been to measure the increase in earnings per share against the rate of
UK retail price inflation plus a fixed per cent per annum over a rolling three year period. The Committee considers that growth in earnings
per share is an appropriate performance target as it is a good guide to the underlying financial performance of The Laird Group. In special
circumstances, such as a change of control, death or retirement, the option scheme rules permit the waiver of performance criteria.
A new share option scheme as described above to replace the 1994 scheme which expires in November 2004 was approved by
shareholders at the 2003 Annual General Meeting. No new awards have been made under the 1994 scheme since the 2003 plans
were approved.
Amount of Award Vesting
%
Full vesting
Pro rata between 30% and full vesting
Nil
Total Shareholder Return
Performance Level
Upper Quartile
Median to Upper Quartile
Below Median 34 THE LAIRD GROUP PLC
Directors’ remuneration report (continued)
for the year to 31 December 2003
1994 share option scheme
The 1994 scheme granted options over new shares to be issued at time of exercise (and also over existing shares). The exercise of
options under the 1994 scheme is dependent upon attainment of performance criteria set by the Remuneration Committee. The scheme
permits the grant of both approved and unapproved options. Options were granted at the middle market price on the last dealing day
prior to grant and are exercisable after three years but not more than ten years from the date of grant.
The performance criteria set by the Remuneration Committee for grants in 2002, the last date on which options were granted under this
scheme, is that the increase in earnings per share must not be less than the increase in the rate of United Kingdom Retail Price Inflation
plus an average of 3% per annum over a three year period. If the performance conditions are not met the Remuneration Committee has
the discretion to extend the period up to a maximum of a further two years but keeping the same base year. Each time options were
granted, the Remuneration Committee set the performance criteria for the exercise of the options.
The 2003 Executive Share Option plans
There are two plans which were approved by shareholders in 2003. One plan is Inland Revenue approved in order to enable grants of
options to be made to individuals who may be eligible for capital gains tax relief on exercise of options, otherwise both plans are identical
in all material respects. The value of shares under options granted to an executive in any financial year will be limited, as under the
previous 1994 scheme, to one times basic salary, unless there are exceptional circumstances (e.g. a high level recruitment), in which
case the limit will be twice basic salary. When granting options, the Remuneration Committee will take into account both the level of
awards made to executives under the new Long Term Incentive Plan and the prevailing share price.
The performance conditions under the plans will be based on the Company’s earnings per share growth adjusted to exclude items which
do not reflect the Company’s underlying financial performance. The following targets applied for options granted in 2003 and the
earnings per share growth is measured from a base point of 17.5p.
The performance conditions will be measured over a three year period. To the extent that the performance conditions have not been met
after three years, the options will lapse.
In order to allow for the grant of options to employees who are not executive directors, there is an overall dilution limit of 10% of the
ordinary share capital in issue from time to time for allocations in respect of newly issued shares over a ten year period under these plans
and all other share schemes operated by the Company.
The directors’ interests in options under the 1994 executive share option scheme in respect of new shares to be issued are shown in the
table below:
Exercised/
Granted Lapsed
1.1.03 in 2003 in 2003 31.12.03
G Drabble 489,000 – – 489,000
P J Hill 616,524 – – 616,524
J C Silver 594,000 – – 594,000
The directors’ interests in options under the 2003 executive share option (No. 1) plan in respect of new shares to be issued are shown in
the table below:
Exercised/
Granted Lapsed
1.1.03 in 2003 in 2003 31.12.03
G Drabble – 64,000* – 64,000
– 32,000
†
– 32,000
P J Hill – 96,000* – 96,000
– 49,000
†
– 49,000
J C Silver – 64,000* – 64,000
– 32,000
†
– 32,000
*The performance criteria is growth in the Company’s earnings per share of at least UK RPI plus an average of 3% per annum for the
three year period ending 31 December 2005.
†
The performance criteria is that the average annual growth in the Company’s earnings per share is at least UK RPI plus 3% to 5% per
annum, applied pro rata to the multiple of salary at time of grant for the three year period ending 31 December 2005.
Applicable Performance Target: Average Annual growth in earnings per share in excess of inflation
UK RPI + 3% per annum
UK RPI + 3% to 5% per annum applied pro rata to the multiple of salary
Tier of Option Grant
Up to 0.5 x salary
0.5 x salary – 1 x salary and above THE LAIRD GROUP PLC 35
The breakdown of the outstanding options is shown in the table below:
Number of shares
under option as at Exercise
31 December 2003 price (p) Exercise period
P J Hill
1994 Executive Scheme 393,651 157.5 2.11.04-2.11.11
222,873 170.5 10.12.05-10.12.12
2003 Executive No. 1 Plan 145,000 207 2.6.06-2.6.13
761,524
G Drabble
1994 Executive Scheme 40,000 426 8.9.00-8.9.07
50,000 185.5 15.9.01-15.9.08
50,000 253 29.11.02-29.11.09
50,000 306.5 27.11.03-27.11.10
127,000 188.5 7.8.04-7.8.11
172,000 146 13.8.05-13.8.12
2003 Executive  No. 1 Plan 96,000 207 2.6.06-2.6.13
585,000
J C Silver
1994 Executive Scheme 40,000 380 7.12.98-7.12.05
25,000 456.5 10.9.99-10.9.06
32,000 426 8.9.00-8.9.07
130,000 185.5 15.9.01-15.9.08
28,000 334 10.9.02-10.9.09
40,000 311.5 16.11.03-16.11.10
127,000 188.5 7.8.04-7.8.11
172,000 146 13.8.05-13.8.12
2003 Executive  No. 1 Plan 96,000 207 2.6.06-2.6.13
690,000
There have been no changes in these interests since the year end. The middle market share price at 31 December 2003 was 268p.
During the year the share price was in the range 144.5p to 286p.
ESOP
The ESOP is operated through a Trust, which purchases and holds shares in The Laird Group to meet the requirements of share
elections for awards made under the annual Group Performance Incentive Scheme, share option awards and grants under the Long
Term Incentive Plan. Currently there are no outstanding share options. The Trust, which is financed by a loan of £2.9m from the
Company, currently holds 1,064,131 ordinary shares of which 484,000 shares relate to the Long Term Incentive Plan. 49,131 shares
relate to the annual Group Performance Incentive Scheme and the cost of acquiring those shares was charged against profits in the year 
to which the awards related. The balance of the shares are unallocated.
No options were held by the executive directors under the ESOP during the year ended 31 December 2003. Pursuant to section 324 
of the Companies Act 1985, the executive directors have an interest in the shares held in the ESOP .
Independent Non-executive Directors
Chairman
Under an arrangement between the Company and Imperialise Limited Mr Keen is retained to act as Chairman of the Company.
Mr Keen’s fees were increased to £145,000 p.a. with effect from 5 June 2003 for his services for which he must account to Imperialise
Limited. In addition Imperialise is paid a sum equivalent to the National Insurance on those fees of £18,500, whereas National Insurance
in respect of the non-executive directors is paid directly to the UK Inland Revenue and not included in the table below. Mr Keen’s initial
period of appointment as Chairman was for three years commencing 5 June 2000, subject to rotation. His term of appointment was
extended by The Laird Group Board for a further three years commencing 5 June 2003, subject to rotation. The appointment may be
terminated by either party giving not less than six months notice.
Non-executive Directors
The non-executive directors are paid an annual fee of £25,000. M A Smith, J B McDowall and Dr Spivey’s emoluments include fees of
£6,000 p.a. to reflect their chairmanship of Board and other Committees. Dr Spivey and D Morton who are both based in North America
receive additional remuneration of £8,000 p.a. to take account of additional time spent on the Group’s business. The Chairman and the
non-executive directors do not receive any other benefits. Directors’ remuneration report (continued)
for the year to 31 December 2003
Emoluments of the Chairman and non-executive directors:
2003 2002
£000 £000
N J Keen, Chairman 147 125
M A Smith, Deputy Chairman 31 29
J B McDowall 31 29
D Morton 33 26
Sir Geoffrey Owen 25 23
Dr W R Spivey* 39 13
* Dr Spivey was appointed on 1 September 2002.
Performance Graphs
The graphs below show for the year ended 31 December 2003 and for the five years ended 31 December 2003, the total shareholder
return on a holding of the Company’s ordinary shares compared with a hypothetical holding of shares made up of shares of the same
kind and number as those by reference to which the FTSE 250 (excluding investment trusts) is calculated. This has been chosen as it is
considered to be the most appropriate comparator group for the Company given the volatility within the Electronics Sector of the FTSE.
Total shareholder return has been calculated by reference to the relevant share price for each constituent company assuming dividends
are reinvested.
In accordance with the Directors’ Remuneration Report Regulations, the nine tables setting out directors’ remuneration, pensions, 
LTIP awards and share options contained within the report have been audited by Ernst & Young; the statements of policy have not 
been audited.
This report was adopted by the Remuneration Committee at a meeting on 1 March 2004 and has been approved subsequently by
The Laird Group Board for submission to shareholders at the Annual General Meeting to be held on 7 May 2004.
By Order of the Board
J B McDOWALL
Chairman of the Remuneration Committee
10 March 2004
36 THE LAIRD GROUP PLC
Total shareholder return for the year ended 31 December 2003 Total shareholder return for the five years ended 31 December 2003
200
180
160
140
120
100
80
260
240
220
200
180
160
140
120
100
80
LAIRD GROUP PLC
FTSE MID 250 rebased
(exc. Investment Trusts)
LAIRD GROUP PLC
FTSE MID 250 rebased
(exc. Investment Trusts)
Jan 99
May 99
Sep 99
Jan 00
May 00
Sep 00
Jan 01
May 01
Sep 01
Jan 02
May 02
Sep 02
Jan 03
May 03
Sep 03
Jan 03
Feb 03
Mar 03
Apr 03
May 03
Jun 03
Jul 03
Aug 03
Sep 03
Oct 03
Nov 03
Dec 03
P P THE LAIRD GROUP PLC 37
Directors’ responsibilities
in relation to the accounts
The following statement, which should be read in conjunction with the report of the independent auditors set out on page 38, 
is made with a view to distinguishing for shareholders the respective responsibilities of the directors and of the auditors in relation 
to the accounts.
The directors are required by the Companies Act 1985 to prepare accounts for each financial year which give a true and fair view of the
state of affairs of the Company and of the Group as at the end of the financial year and of the profit or loss of the Group for the financial
year.
The directors consider that in compiling the accounts on pages 39 to 61, which have been prepared on a going concern basis, the
Company 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 Company keeps accounting records which disclose with reasonable accuracy 
the financial position of the Company and of the Group and which enable them to ensure that the accounts comply with the Companies
Act 1985.
The directors have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and
to prevent and detect fraud and other irregularities.
The directors, having prepared the accounts, note that the auditors are required by the Companies Act 1985 to take whatever steps and
undertake whatever inspections they consider to be appropriate for the purpose of enabling them to give their audit report. 38 THE LAIRD GROUP PLC
Independent auditors’ report 
to the members of The Laird Group PLC
We have audited the Group’s financial statements for the year ended 31 December 2003 which comprise the Group profit and loss
account, Group cash flow statement, Group balance sheet, Statement of total recognised gains and losses, Movements in shareholders’
funds, Company balance sheet, the Accounting policies and the related Notes 1 to 29. These financial statements have been prepared
on the basis of the accounting policies set out therein. We have also audited the information in the Directors’ remuneration report that is
described as having been audited.
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, the Directors’ remuneration report and the financial statements 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 financial statements and the part of the Directors’ remuneration report to be audited 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 financial statements give a true and fair view and whether the financial statements and
the part of the Directors’ remuneration report to be audited have been 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 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 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 form an opinion on the effectiveness of the Group’s corporate governance
procedures or its risk and control procedures.
We read other information contained in the Annual Report and consider whether it is consistent with the audited financial statements.
This other information comprises the Chairman’s statement, Chief Executive’s review, Finance Director’s report, Directors’ report and the
unaudited part of the Directors’ remuneration report. We consider the implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with 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 and the part of the
Directors’ remuneration report to be audited. It also includes an assessment of the significant estimates and judgements made by the
directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Group’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 and the part of the Directors’ remuneration
report to be audited 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 and the part of the Directors’
remuneration report to be audited.
Opinion
In our opinion the financial statements give a true and fair view of the state of affairs of the Company and of the Group as at 
31 December 2003 and of the profit of the Group for the year then ended; and the financial statements and the part of the Directors’
remuneration report to be audited have been properly prepared in accordance with the Companies Act 1985.
Ernst & Young LLP
Registered Auditor
London
10 March 2004  Notes to the accounts
THE LAIRD GROUP PLC 39
Group profit and loss account
for the year to 31 December
note 2003 2002
£m £m
1 Turnover
– continuing operations 428.8 424.3
– discontinued operations – 69.0
428.8 493.3
2 Operating profit
– continuing operations
before exceptional items and goodwill amortisation 41.4 36.2
exceptional items (5.9) (7.0)
goodwill amortisation (10.6) (10.6)
24.9 18.6
– discontinued operations
before exceptional items – (1.9)
exceptional items – (7.4)
24.9 9.3
3 Loss on disposal of businesses – (58.8)
Profit/(loss) on ordinary activities before interest 24.9 (49.5)
4 Interest (4.0) (4.9)
Profit/(loss) on ordinary activities before taxation 20.9 (54.4)
5 Taxation 2.9 (5.8)
Profit/(loss) for the financial year 23.8 (60.2)
6 Dividends (12.3) (11.9)
28 Retained profit/(loss) 11.5 (72.1)
7 Earnings per share – basic and diluted 16.8p (42.5)p
6 Dividends per share 8.6p 8.3p
7 Results from continuing operations 
before exceptional items and goodwill amortisation
Profit before taxation 37.4 31.8
Earnings per share 21.6p 17.3p
THE LAIRD GROUP PLC 39 Group cash flow statement  
for the year to 31 December
note 2003 2002
£m £m
10 Net cash inflow from operating activities 55.8 43.0
12 Returns on investments and servicing of finance (3.9) (4.9)
Taxation (2.7) (7.1)
12 Capital expenditure less disposals (12.6) (7.7)
11 Acquisitions and disposals (20.8) (22.1)
Dividends paid (12.0) (11.9)
Cash inflow/(outflow) before management of liquid 
resources and financing 3.8 (10.7)
12 Management of liquid resources 27.2 (28.5)
12 Financing (39.0) 8.6
Decrease in cash* (8.0) (30.6)
Reconciliation of net cash flow to movement in net borrowings
Decrease in cash during the year (8.0) (30.6)
Cash outflow/(inflow) from change in borrowings 39.6 (8.4)
Cash (inflow)/outflow from change in liquid resources (27.2) 28.5
13 Change in net borrowings resulting from cash flows 4.4 (10.5)
Borrowings of businesses acquired (4.5) (0.6)
Borrowings of businesses disposed of – 1.5
13 Differences on exchange 6.6 9.7
Movement in net borrowings during the year 6.5 0.1
Net borrowings at 1 January (66.6) (66.7)
13 Net borrowings at 31 December (60.1) (66.6)
*Under FRS 1 (revised) cash is defined as being cash in hand plus deposits less overdrafts each of which are 
repayable on demand. Bank deposits which are not repayable on demand are treated as liquid resources in the
cash flow but as cash at bank in the balance sheet.
40 THE LAIRD GROUP PLC Group balance sheet
as at 31 December
note 2003 2002
(restated)
£m £m
Fixed assets
14 Intangible assets 183.3 180.2
15 Tangible assets 61.7 63.8
245.0 244.0
Current assets
18 Stocks 48.6 52.1
19 Debtors 78.6 67.8
Cash at bank 37.3 70.6
Creditors: amounts falling due within one year
20 Borrowings (24.0) (4.1)
23 Other (89.9) (73.2)
Net current assets 50.6 113.2
Total assets less current liabilities 295.6 357.2
Creditors: amounts falling due after more than one year
20 Borrowings (73.4) (133.1)
23 Other (8.0) (9.3)
25 Provisions for liabilities and charges (13.4) (14.9)
200.8 199.9
Capital and reserves
26 Ordinary share capital 35.8 35.7
27 Investment in own shares (2.9) (2.9)
Share premium account 106.6 106.1
28 Revaluation reserve 2.4 3.2
28 Profit and loss account 58.9 57.8
Equity shareholders’ funds 200.8 199.9
The accounts were approved by the Board of Directors on 10 March 2004 
and were signed on its behalf by:
PJ Hill
JC Silver
Directors
THE LAIRD GROUP PLC 41 Statement of total recognised gains and losses
for the year to 31 December
2003 2002
£m £m
Profit/(loss) for the financial year 23.8 (60.2)
Exchange differences on retranslation of overseas net investments (14.0) (16.2)
Exchange differences on loans 0.3 1.8
Tax on exchange differences 2.1 2.3
Total gains and losses recognised during the year 12.2 (72.3)
Prior year adjustment – deferred taxation – (9.8)
Total gains and losses recognised since last Annual Report 12.2 (82.1)
Note of historical cost profits and losses 
for the year to 31 December
2003 2002
£m £m
Reported profit/(loss) on ordinary activities before taxation 20.9 (54.4)
Realisation of property valuation gains of previous years 0.8 0.8
Historical cost profit/(loss) on ordinary activities before taxation 21.7 (53.6)
Historical cost profit/(loss) for the year retained after taxation and dividends 12.3 (71.3)
Movements in shareholders’ funds 
for the year to 31 December
2003 2002
(restated)
£m £m
Shareholders’ funds brought forward as previously stated 202.8 268.2
Prior year adjustment – reclassification of investment in own shares (2.9) (2.9)
Prior year adjustment – deferred taxation – (9.8)
Shareholders’ funds at 1 January 199.9 255.5
Total gains and losses recognised during the year 12.2 (72.3)
Dividends (12.3) (11.9)
Issue of shares 0.6 0.2
Long Term Incentive Plan allocation 0.4 –
Goodwill written back – 28.4
Movements in shareholders’ funds for the year 0.9 (55.6)
Shareholders’ funds at 31 December 200.8 199.9
42 THE LAIRD GROUP PLC Company balance sheet
as at 31 December
note 2003 2002
(restated)
£m £m
Fixed assets
15 Tangible assets 0.1 0.1
17 Investments 281.4 264.8
281.5 264.9
Current assets
19 Debtors 228.4 236.6
Cash at bank 24.5 48.0
Creditors: amounts falling due within one year
20 Borrowings (20.6) (3.2)
23 Other (20.0) (11.6)
Net current assets 212.3 269.8
Total assets less current liabilities 493.8 534.7
Creditors: amounts falling due after more than one year
20 Borrowings (25.1) (57.6)
23 Other (184.3) (181.7)
25 Provisions for liabilities and charges (4.8) (5.9)
279.6 289.5
Capital and reserves
26 Ordinary share capital 35.8 35.7
27 Investment in own shares (2.9) (2.9)
Share premium account 106.6 106.1
28 Special reserve 55.5 55.5
28 Profit and loss account 84.6 95.1
Equity shareholders’ funds 279.6 289.5
The accounts were approved by the Board of Directors on 10 March 2004 
and were signed on its behalf by:
PJ Hill
JC Silver
Directors
THE LAIRD GROUP PLC 43 44 THE LAIRD GROUP PLC
Accounting policies
Basis of preparation and consolidation
The Group accounts include the accounts of The Laird Group PLC and its subsidiary undertakings (“subsidiaries”), all of which have
been prepared up to 31 December under the historical cost convention, as modified by the revaluation of freehold properties and in
accordance with applicable UK accounting standards.
The results of subsidiaries acquired during the year are included for the effective period of ownership. Intra-Group profits are eliminated
on consolidation.
The Group has adopted UITF 38 – Accounting for ESOP Trusts (and the related amendments to UITF 17 – Employee Share Schemes)
for 2003. This change has resulted in a prior year adjustment to reduce shareholders’ funds of the Company and Group by £2.9m.
Certain comparative figures have been restated to conform with the 2003 presentation.
Turnover
Turnover represents the sales value invoiced. Taxes on sales and intra-Group sales are excluded.
Depreciation
Depreciation is calculated to write off the cost or valuation of fixed assets, other than freehold land, evenly over their expected useful
lives, principally as follows:
Freehold buildings 50 years or less
Leasehold land and buildings 50 years or the lease term if less
Computer equipment 5 years or less
Motor vehicles 4 years
Other plant and machinery 13 years or less
A proportion of one year’s depreciation is charged in the year the asset comes into service or is sold.
Pensions
Under the transitional arrangements of FRS 17, the Group has accounted for pensions in accordance with SSAP 24. The regular cost
of providing pensions of the defined benefit type is charged to the profit and loss account and is based on a level percentage of
earnings of employees covered under the schemes. Variations from regular cost, arising from periodic actuarial valuations, are
amortised over the average expected remaining working lives of current employees in the schemes. Contributions to defined
contribution pension schemes are charged to the profit and loss account as they become payable in accordance with the scheme
rules.
Research and development
Revenue expenditure on research and development is written off in the year in which it is incurred.
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but which have not reversed at the balance sheet
date where transactions or events have occurred at that date that will result in an obligation to pay more or a right to pay less or to
receive more, tax subject to the following:
(a) Deferred tax is not recognised on the revaluation of non-monetary assets such as property unless a binding sale agreement exists
at the balance sheet date. Where rollover relief is available on an asset then deferred tax is in any case not recognised.
(b) Deferred tax is not recognised on unremitted earnings of overseas subsidiaries unless dividends have been accrued as receivable
or there is a binding agreement to distribute past earnings at the balance sheet date.
(c) Deferred tax assets are recognised to the extent that they are regarded as recoverable. Assets are regarded as recoverable when it
is regarded as more likely than not there will be suitable taxable profits from which the future reversal of the underlying timing
differences can be deducted.
Goodwill
Goodwill arising on the acquisition of businesses prior to 1 January 1998 and subsequent adjustments to fair value have been set off
against reserves. Goodwill arising on the acquisition of businesses since 1 January 1998 is capitalised and amortised through the profit
and loss account over the lesser of useful economic life or 20 years.
Fixed assets
The Group’s policy is not to revalue its freehold property annually. The valuations of freehold property adopted at 31 December 1999
have been retained.
Finance and operating leases
Where the Group has substantially all the risks and rewards of ownership of an asset subject to a lease, the lease is treated as a
finance lease. Other leases are treated as operating leases.
Future instalments payable under finance leases, net of finance charges, are included in borrowings with the corresponding asset
values recorded in tangible fixed assets. Depreciation on leased assets is charged to the profit and loss account over the life of the
asset or lease term if shorter. Operating lease payments are charged to the profit and loss account on a straight line basis over the
lease term. THE LAIRD GROUP PLC 45
Stocks and work in progress
Stocks and work in progress are valued at the lower of cost and net realisable value. Cost comprises direct materials and labour and
an appropriate proportion of overheads.
Foreign currencies
In the Group accounts the results and cash flows of overseas subsidiaries are translated into Sterling using weighted average rates of
exchange for the period. Net investments in overseas subsidiaries are translated into Sterling at rates of exchange ruling at the balance
sheet date. Exchange differences arising from retranslating opening net investments and the retained profits for the period of overseas
subsidiaries, less exchange differences on foreign currency borrowings raised to finance or provide a hedge against overseas
investments, are shown as movements on reserves. All other exchange differences are dealt with in the profit and loss account for
the period.
In the balance sheet of The Laird Group PLC, the investments in overseas subsidiaries are translated into Sterling at the rates of
exchange ruling at the date of the relevant transaction.
Financial instruments
Forward contracts are used to hedge foreign currency exposures arising on committed future transactions in foreign currencies.
The rates under such contracts are used to record the hedged item.
Interest differentials on interest rate swaps are recognised by adjusting net interest payable.  Interest rate swaps are not revalued to fair
value prior to maturity. 46 THE LAIRD GROUP PLC
Notes to the accounts
note
1 Segmental analysis
Turnover Operating profit Capital employed
2003 2002 2003 2002 2003 2002
£m £m £m £m £m £m
By activity:
Continuing operations
Before exceptional items
and goodwill amortisation:
Laird Technologies 95.8 92.4 12.6 10.8 172.5 182.0
Laird Security Systems 205.3 195.9 24.8 22.6 67.6 60.0
Laird Plastics 127.7 136.0 4.0 2.8 20.8 24.5
428.8 424.3 41.4 36.2 260.9 266.5
Exceptional items – – (5.9) (7.0) – –
Goodwill amortisation – – (10.6) (10.6) – –
428.8 424.3 24.9 18.6 260.9 266.5
Discontinued operations
Before exceptional items
Electronic Manufacturing 
Services – 69.0 – (1.9) – –
Exceptional items – – – (7.4) – –
428.8 493.3 24.9 9.3 260.9 266.5
By geographical location 
of operations:
Continuing operations
Before exceptional items
and goodwill amortisation:
United Kingdom 127.8 124.0 8.0 5.8 59.7 42.1
North America 260.4 260.3 27.7 24.3 161.8 195.2
Rest of world 40.6 40.0 5.7 6.1 39.4 29.2
428.8 424.3 41.4 36.2 260.9 266.5
Exceptional items – – (5.9) (7.0) – –
Goodwill amortisation – – (10.6) (10.6) – –
428.8 424.3 24.9 18.6 260.9 266.5
Discontinued operations
Before exceptional items
United Kingdom – 50.6 – 0.2 – –
North America – 18.4 – (1.7) – –
Rest of world – – – (0.4) – –
Exceptional items – – – (7.4) – –
428.8 493.3 24.9 9.3 260.9 266.5 THE LAIRD GROUP PLC 47
Notes to the accounts
note
1 Segmental analysis (continued)
Notes
(a) The exceptional items in 2003 within continuing operations relate to redundancy and restructuring costs in Laird Technologies
£4.3m (2002 £4.8m), Laird Security Systems £1.9m (2002 £0.9m) and an exceptional credit in Laird Plastics of £0.3m
(2002 cost £1.3m) and geographically in the United Kingdom £4.6m (2002 £1.7m), North America £0.1m credit (2002 cost
£5.3m) and Rest of world £1.4m (2002 £nil).
(b) Goodwill amortisation by activity is Laird Technologies £8.9m (2002 £9.1m), Laird Security Systems £1.6m (2002 £1.4m) and
Laird Plastics £0.1m (2002 £0.1m) and geographically is the United Kingdom £0.3m (2002 £0.1m), North America £9.1m
(2002 £9.4m) and Rest of world £1.2m (2002 £1.1m).
(c) Turnover by geographical destination is United Kingdom £121.9m (2002 £165.5m), North America £249.5m (2002 £273.6m)
and Rest of world £57.4m (2002 £54.2m).
(d) Capital employed is shareholders’ funds of £200.8m (2002 £199.9m) plus net borrowings of £60.1m (2002 £66.6m).
(e) The results and cash flows of overseas subsidiaries are translated into Sterling using weighted average rates of exchange for
the year. The principal rates used were as follows:
Average Closing
2003 2002 2003 2002
Euros 1.44 1.59 1.42 1.53
US Dollars 1.64 1.48 1.79 1.61
2 Operating profit
2003 2002
Continuing Discontinued Continuing Discontinued `
operations operations Total operations operations Total
£m £m £m £m £m £m
Turnover 428.8 – 428.8 424.3 69.0 493.3
Cost of sales (334.8) – (334.8) (338.9) (61.5) (400.4)
Gross profit 94.0 – 94.0 85.4 7.5 92.9
Administrative expenses (63.2) – (63.2) (59.8) (9.4) (69.2)
Exceptional items (5.9) – (5.9) (7.0) (7.4) (14.4)
Operating profit 24.9 – 24.9 18.6 (9.3) 9.3
2003 2002
£m £m
Operating profit is after charging the following items:
Exceptional items
Redundancy costs and reorganisation 4.1 9.2
Write down of fixed assets 1.8 5.9
Gain on disposal of fixed assets – (0.7)
Research and development expenditure 6.0 5.5
Depreciation 11.0 14.1
Goodwill amortisation 10.6 10.6
Operating lease rentals
Hire of plant and machinery 1.4 2.0
Other 5.7 8.1
Auditors’ remuneration*
Audit fees 0.6 0.6
Other fees 0.7 0.8
*In addition, fees of £0.2m (2002 £0.8m) for services in respect of acquisitions and disposals were paid to the auditors but not charged against operating profit. 48 THE LAIRD GROUP PLC
Notes to the accounts
note
3 Loss on disposal of businesses
2003 2002
£m £m
Loss before goodwill reinstatement – (30.4)
Goodwill previously set off against reserves – (28.4)
– (58.8)
4 Interest
2003 2002
£m £m
Interest expense on loans
Bank loans and overdrafts 2.2 2.5
Other loans 3.4 4.1
5.6 6.6
Interest income (1.6) (1.7)
4.0 4.9
5 Taxation
2003 2002
£m £m
(a) Analysis of the tax (credit)/charge for the year
Current tax
UK corporation tax
Tax on results of the year 1.5 1.0
Adjustments in respect of prior years (1.4) (0.3)
Total UK tax charge 0.1 0.7
Overseas tax
Tax on results of the year 3.9 3.0
Adjustments in respect of prior years (4.4) 3.0
Total overseas tax (credit)/charge (0.5) 6.0
Total current tax (credit)/charge (0.4) 6.7
Deferred tax (2.5) (0.9)
Tax (credit)/charge on results from ordinary activities (2.9) 5.8
The overall tax credit for the year includes an exceptional tax credit of £8.5m (2002 £nil) which is made up of a current tax credit
of £6.2m (2002 £nil) and a deferred tax credit of £2.3m (2002 £nil).
(b) Tax included in the statement of total recognised gains and losses
The tax credit is made up as follows:
UK corporation tax (2.1) (2.3) THE LAIRD GROUP PLC 49
note
5 Taxation (continued)
(c) Factors affecting the current tax (credit)/charge for the year
The tax (credit)/charge for the year differs from the standard rate of corporation tax in the UK of 30% (2002 30%). The
differences are explained below:
2003 2002
£m £m
Profit/(loss) on ordinary activities before tax 20.9 (54.4)
Profit/(loss) on ordinary activities before tax multiplied by the standard rate of corporation tax 
in the UK of 30% (2002 30%) 6.3 (16.3)
Effects of
Expenses not deductible for tax purposes 0.4 1.3
Accelerated capital allowances (1.3) (0.5)
Other timing differences 0.6 (0.5)
Loss on disposal of businesses not allowable for tax purposes – 17.6
Tax losses in the year not relievable against current tax 0.3 1.4
Overseas tax rate differences 0.7 1.1
Adjustments in respect of prior years (5.8) 2.7
Other (1.6) (0.1)
Current tax (note 5(a)) (0.4) 6.7
(d) Factors that may affect future tax charges
Tax losses with a value of £2.0m have been used to offset deferred tax liabilities whilst additional tax losses with a value of
£2.3m have not been recognised as a deferred tax asset as their future use is currently uncertain.
No deferred tax has been recognised in respect of the earnings of overseas subsidiary undertakings as no dividends had
been accrued at the balance sheet date.
No provision has been made for deferred tax on surpluses recognised on revalued properties. The total amount unprovided
for is £0.8m. Such tax would become payable only if the properties were sold without it being possible to claim rollover relief.
6 Dividends
Per share
2003 2002 2003 2002
p p £m £m
Interim paid 3.0 2.9 4.3 4.2
Final recommended 5.6 5.4 8.0 7.7
8.6 8.3 12.3 11.9
The recommended final dividend, if approved, will be paid on 4 June 2004 to shareholders registered on 7 May 2004.
Notes to the accounts 50 THE LAIRD GROUP PLC
Notes to the accounts
note
7 Earnings per share and results from continuing operations
The calculation of basic and diluted earnings per share is based on a profit for the year of £23.8m (2002 loss £60.2m) and
141.9m (2002 141.6m) shares, being a daily average of the shares in issue during the year. 
Continuing earnings per share before exceptional items and goodwill amortisation is shown as the Board considers it to be a
relevant guide to the performance of the Group. The continuing profits and earnings for 2002 were calculated on the basis that
the discontinued activities were divested on the first day of the year with interest accruing at 3.6% on the proceeds of £20m for
the full year. The tax charge for the year from continuing operations, calculated after adding back certain exceptional tax credits
of £8.5m, is equivalent to 18% (2002 23%) of the profit before operating exceptional items, goodwill amortisation and loss on
disposal of businesses.
Profit before tax Earnings
2003 2002 2003 2002
£m £m p/share p/share
Profit or (loss)/earnings 20.9 (54.4) 16.8 (42.5)
Operating exceptional items 5.9 14.4 3.4 9.3
Goodwill amortisation 10.6 10.6 7.5 7.5
Loss on disposal of businesses – 58.8 – 41.5
Exceptional tax credits – – (6.1) –
37.4 29.4 21.6 15.8
Discontinued operations – 1.9 – 1.2
Interest allocation – 0.5 – 0.3
Profit/earnings from continuing operations
before exceptional items and goodwill amortisation 37.4 31.8 21.6 17.3
8 Directors
2003 2002
£000 £000
Emoluments 
Fees 163 142
Salaries and benefits 1,090 1,190
Pension contributions 141 189
Performance incentive awards 
Bonuses 697 477
2,091 1,998
9 Employees
2003 2002
Number Number
Average number of Group employees
Laird Technologies 1,478 1,229
Laird Security Systems 2,153 2,040
Laird Plastics 513 537
4,144 3,806
Discontinued – 1,160
4,144 4,966
£m £m
Employee costs
Wages and salaries 79.5 103.2
Social security costs 6.6 8.4
Other pension costs 3.6 4.5
89.7 116.1 THE LAIRD GROUP PLC 51
note
9 Employees (continued)
Pension schemes
The Group operates a number of pension schemes of both the defined benefit and defined contribution types.
Approximately 700 (2002 700) employees are members of seven different defined benefit schemes and these schemes have
approximately 1,900 (2002 1,900) deferred and current pensioners. The employer contributions made to these schemes and the
charge for the year was £2.0m (2002 £2.9m). The assets are held in separate trustee administered funds. Pension costs are
assessed by independent actuaries, full actuarial valuations being made every three years using either the projected unit or
attained age methods. The most recent actuarial valuations were made between April 2001 and January 2003.
Defined benefit schemes have continued to be accounted for in accordance with SSAP 24. Generally the main assumption
applied to the valuations was that the long term rate of return on scheme assets would exceed future general average earnings
inflation by at least 2% (2002 2%) per annum. As at the dates of the most recent actuarial valuations, the defined benefit
schemes in aggregate showed assets, including annuities purchased to secure pensions, with a total value of £60m (2002 £62m)
which were sufficient to cover 98.5% (2002 103%) of the value of benefits accrued to members. It is expected that when new full
actuarial valuations are next carried out the resulting assets and liabilities will be different to those described above.
These schemes have been assessed as at 31 December 2003 in the manner prescribed by the new Accounting Standard,
FRS 17, in order to provide an indication of how these schemes would have been reflected in the Group Accounts under FRS 17,
which was to have come fully into effect for the Group Accounts for the year ending 31 December 2003 but which has been
deferred by the Accounting Standards Board.
The total assessed value of the schemes’ assets at 31 December 2003 at their market value is estimated at £61m (2002 £57m)
and the liabilities estimated at £69m (2002 £64m). The resultant aggregate net pension liability under FRS 17 is £8m (2002 £7m),
which, in future years, were FRS 17 to be adopted, would result in a decrease in the Group’s reserves of £6m (2002 £5m), being
the £8m, net pension liability offset by £2m (2002 £2m) of related deferred tax. Since last year equity markets have risen,
however this increase has not been sufficient to offset reductions in corporate bond yields and higher inflation both of which
impact upon the value of discounted liabilities, resulting in a higher aggregate net pension liability as measured under FRS 17.
Although SSAP 24 indicates that the total value of the funds, on the basis of the most recent full actuarial valuations, were
sufficient to cover 98.5% (2002 103%) of the liabilities, the Group is aware that pension costs as calculated under SSAP 24 for
some of the schemes could also be affected by the current economic trends, although it does not believe that a significant
increase in employer contributions to these schemes is currently required.
The main assets in the schemes, stated at their estimated market value under FRS 17 at 31 December, were as follows.
2003 2002
£m £m
Insurance Companies:
Deposit Administration Contracts 4.8 4.8
Annuities 11.1 14.6
Equities 28.7 22.4
Gilts and bonds 13.8 14.5
Other including cash 2.8 1.0
61.2 57.3
The deposits with insurance companies are invested in equities and bonds.
There are minor variations in the assumptions used by the different actuaries employed to value the separate schemes. The
expected long term rates of return on the insurance company deposits and gilts and bonds are estimated at 4.8% per annum
(2002 4.5%) and those for equities at 8.5% per annum (2002 8%). The returns on the annuities match the relevant liabilities.
For FRS 17 the schemes’ liabilities have mainly been calculated under the projected unit method and the main financial
assumptions were inflation of 2.7% per annum (2002 2.5%), salary increases of 3.7% per annum (2002 4.25%) and a discount
rate for liabilities of 5.6% per annum (2002 5.75%). Some of the schemes provide pensions with increases linked to the cost of
living, but the majority of pensions in payment and deferred pensions have no guaranteed increases.
Notes to the accounts 52 THE LAIRD GROUP PLC
Notes to the accounts
note
9 Employees (continued)
An analysis of the approximate defined benefit cost for the year ended 31 December pursuant to FRS 17 is:
2003 2002
£m £m
Current service cost 1.9 2.2
Past service cost – 0.7
Total operating charge 1.9 2.9
Loss on settlements or curtailments – 2.1
Expected return on pension investments (3.6) (4.1)
Interest on pension liabilities 3.6 3.8
Total credit to other finance income – (0.3)
Total charge to profit and loss account before deduction of tax if FRS 17 applied 1.9 4.7
Analysis of amount which would be recognised in the Statement of total recognised gains and losses (“STRGL”) if FRS 17
applied:
2003 2002
%£m %£m
Actual return less expected return on pension scheme assets 0.9 (7.1)
% of Plan assets at 31 December 1 12
Experience gain on Plan liabilities (0.7) 2.1
% of Plan liabilities at 31 December 1 3
Loss on change of assumptions (1.4) (1.6)
% of Plan liabilities 2 3
Total actuarial loss recognised in STRGL (1.2) (6.6)
% of Plan liabilities at 31 December 2 10
Analysis of movements in (deficit)/surplus during the year:
2003 2002
£m £m
(Deficit)/surplus at 1 January (7.1) 1.2
Current service cost (1.9) (2.2)
Contributions 2.2 3.0
Past service cost – (0.7)
Settlement cost – (2.1)
Other finance income – 0.3
Actuarial loss (1.2) (6.6)
Deficit at 31 December (8.0) (7.1)
10 Net cash inflow from operating activities
2003 2002
£m £m
Operating profit 24.9 9.3
Depreciation and write down of fixed assets 12.8 20.0
Profit on disposal of fixed assets – (0.7)
Goodwill amortisation 10.6 10.6
Changes in working capital
Stocks 2.4 4.4
Debtors (6.0) 3.1
Creditors and provisions 11.1 (3.7)
7.5 3.8
Net cash inflow from operating activities 55.8 43.0 Notes to the accounts
note
11 Net cash outflow on acquisitions and disposals
2003 2002
£m £m
Acquisition of businesses
Consideration:
Cash consideration (17.5) (19.8)
Net cash acquired 0.6 –
Net cash outflow on acquisition of businesses (16.9) (19.8)
Borrowings acquired (4.5) (0.6)
Total consideration for acquisitions made during the year (21.4) (20.4)
Disposal of businesses
Consideration:
Net cash consideration (2.6) (3.0)
Net overdrafts disposed of – 1.3
Net cash outflow on disposal of businesses (2.6) (1.7)
Borrowings disposed of – 1.5
Total consideration on disposal of businesses (2.6) (0.2)
Net cash outflow on acquisitions and disposals
Acquisitions made during the year (16.9) (19.8)
Deferred consideration (1.3) (0.6)
Disposal of businesses (2.6) (1.7)
Net cash outflow on acquisitions and disposals (20.8) (22.1)
12 Analysis of other cash flow items
2003 2002
£m £m
Returns on investments and servicing of finance
Interest received 1.7 1.7
Interest paid (5.6) (6.6)
(3.9) (4.9)
Capital expenditure less disposals
Purchase of tangible fixed assets (13.0) (10.6)
Cash inflow on own shares – 0.1
Disposal of tangible fixed assets 0.4 2.8
(12.6) (7.7)
Management of liquid resources
Decrease/(increase) in short term deposits with banks 27.2 (28.5)
Financing
Issue of ordinary shares 0.6 0.2
(Decrease)/increase in borrowings (39.6) 8.4
(39.0) 8.6
13 Analysis of movements in net borrowings
At 1 At 31
January Non-cash Exchange December
2003 Cash flow Acquisitions changes differences 2003
£m £m £m £m £m £m
Cash at bank 70.6 (33.5) – – 0.2 37.3
Overdrafts (0.5) (1.6) – – 0.1 (2.0)
Loans due within 
one year (3.6) (11.3) (4.2) (3.1) 0.4 (21.8)
Loans due after more 
than one year (133.1) 50.8 – 3.1 5.9 (73.3)
Finance leases – – (0.3) – – (0.3)
Total (66.6) 4.4 (4.5) – 6.6 (60.1)
THE LAIRD GROUP PLC 53 54 THE LAIRD GROUP PLC
Notes to the accounts
note
14 Intangible assets
Goodwill £m
Cost
At 1 January 2003 203.9
Acquisition of businesses 27.6
Differences on exchange (16.4)
At 31 December 2003 215.1
Amortisation
At 1 January 2003 23.7
Provided during the year 10.6
Differences on exchange (2.5)
At 31 December 2003 31.8
Net book value at 31 December 2003 183.3
15 Tangible assets
Land and Plant and
buildings machinery Total
Group £m £m £m
Cost or valuation
At 1 January 2003 22.0 107.5 129.5
Additions 1.2 13.6 14.8
New businesses – 1.6 1.6
Reclassification to current assets (3.2) – (3.2)
Disposals – (5.6) (5.6)
Differences on exchange (1.7) (6.9) (8.6)
At 31 December 2003 18.3 110.2 128.5
Accumulated depreciation
At 1 January 2003 4.0 61.7 65.7
Charge for year 2.1 10.7 12.8
Reclassification to current assets (1.9) – (1.9)
Disposals – (5.6) (5.6)
Differences on exchange (0.5) (3.7) (4.2)
At 31 December 2003 3.7 63.1 66.8
Net book value at 31 December 2003 14.6 47.1 61.7
2003 2002
£m £m
Net book value of land and buildings at cost or valuation:
Freehold property – at cost 4.5 7.3
– at valuation 8.3 8.9
12.8 16.2
Leasehold property at cost
50 years or more unexpired 0.6 0.5
Less than 50 years unexpired 1.2 1.3
14.6 18.0
Group freehold properties were revalued by the directors as at 31 December 1999 on an existing use basis after taking into
account a report prepared by independent property advisers. 
Company
The fixed assets of the Company at a cost of £0.5m (2002 £1.0m) and accumulated depreciation of £0.4m (2002 £0.9m) are
included above. There were additions of £0.1m and disposals of £0.1m during the year and depreciation in the year was £nil. THE LAIRD GROUP PLC 55
Notes to the accounts
note
16 Future capital expenditure not provided in the accounts
2003 2002
£m £m
Contracts placed 1.1 1.5
17 Investments
2003 2002
£m £m
Company
Shares in subsidiary undertakings 322.7 305.2
Provisions (41.3) (40.4)
281.4 264.8
The principal subsidiary undertakings of The Laird Group PLC at 31 December 2003 are shown on page 62.
Acquisition of businesses
2003 2002
£m £m
Net assets of businesses acquired at fair value, stated at rates of exchange at date of acquisition, 
were as follows:
Goodwill 27.6 14.9
Tangible fixed assets 1.6 5.7
Other net assets, excluding net borrowings 0.7 (0.5)
29.9 20.1
Consideration:
Cash consideration (17.5) (18.9)
Deferred cash consideration (8.5) (0.6)
Net cash acquired 0.6 –
Net cash consideration on acquisition of businesses (25.4) (19.5)
Borrowings acquired (4.5) (0.6)
Total consideration for acquisitions during the year (29.9) (20.1)
The businesses of Omega International, Magnes Corporation, Orcus Technologies, Inc., Intron Limited and Warth International
Limited were acquired during the year. There were no material differences between book values and fair values of net assets of
the businesses acquired.
18 Stocks
2003 2002
£m £m
Raw materials and consumables 13.6 14.0
Work in progress 4.5 4.0
Finished goods 30.5 34.1
48.6 52.1 56 THE LAIRD GROUP PLC
Notes to the accounts
note
19 Debtors
Group Company
2003 2002 2003 2002
£m £m £m £m
Trade debtors 59.4 56.5 – –
Amounts owed by subsidiary undertakings – – 222.3 231.2
Other debtors 12.7 9.2 3.5 3.7
Property assets held pending disposal 1.3 – – –
Prepayments and accrued income 2.0 2.1 0.8 0.2
Taxation 3.2 – 1.8 1.5
78.6 67.8 228.4 236.6
of which the following are due after 
more than one year:
Amounts owed by subsidiary undertakings – – 214.0 223.0
Other debtors 1.3 4.3 – 3.5
1.3 4.3 214.0 226.5
20 Borrowings
Group Company
2003 2002 2003 2002
£m £m £m £m
Due within one year:
Short term borrowings 18.7 0.2 18.3 –
Bank overdrafts 2.0 0.5 2.3 3.2
US Private Placement loans 2004/2006 3.1 3.4 – –
Obligations under finance leases 0.2 – – –
24.0 4.1 20.6 3.2
Due after more than one year:
US Private Placement loans 2004/2006 6.2 10.2 – –
US Private Placement loans 2008/2014 27.9 31.1 – –
Other term loans 39.2 91.8 25.1 57.6
Obligations under finance leases 0.1 – – –
73.4 133.1 25.1 57.6
Total borrowings 97.4 137.2 45.7 60.8 THE LAIRD GROUP PLC 57
Notes to the accounts
note
20 Borrowings (continued) Group Company
2003 2002 2003 2002
£m £m £m £m
Borrowings are repayable as follows:
Within one year
Bank 20.7 0.7 20.6 3.2
Other 3.1 3.4 – –
Finance leases 0.2 – – –
Between one and two years
Bank 0.1 91.2 – 57.6
Other 3.1 3.4 – –
Finance leases 0.1 – – –
Between two and five years
Bank 39.0 0.4 25.1 –
Other 10.1 6.8 – –
In five years or more
Bank 0.1 0.2 – –
Other 20.9 31.1 – –
Total borrowings 97.4 137.2 45.7 60.8
Notes
(a) Group borrowings included £0.4m (2002 £1.0m) secured on the assets of certain subsidiary undertakings. Company
borrowings are unsecured.  
(b) Group bank overdrafts are stated after applying bank account offset agreements.
(c) US Private Placement loans comprise $16.5m of Senior Notes repayable between 2004 and 2006 at a fixed rate of interest of
9.55% and $50m of Senior Notes repayable between 2008 and 2014 at an average fixed rate of interest of 7.42% arising
from private placements of debt with US insurance companies.
(d) The Company had committed bilateral bank loan facilities of £155m. £140m of this was underwritten in excess of four years,
and £15m less than one year. Drawings by Group companies under these facilities were £53.7m (2002 £91.0m). 
21 Financial instruments
Interest rate and currency profile
The Group’s policy is to maintain an appropriate balance between variable and fixed interest rate borrowings. Interest rate swaps
and similar instruments are used generally to fix interest costs.
Financial liabilities
The interest rate and currency profile of the financial liabilities of the Group is set out below:
As at 31 December 2003 At fixed interest rates
Weighted Weighted 
At fixed At floating No interest average average
interest rates interest rates payable Total interest rate period
£m £m £m £m % Years
Sterling – 1.2 5.8 7.0 – –
US Dollar 37.2 31.6 1.7 70.5 8.0 6.8
Euro –23.5 1.1 24.6 – –
Other – 3.9 – 3.9 – –
Total 37.2 60.2 8.6 106.0 8.0 6.8
As at 31 December 2002 At fixed interest rates
Weighted Weighted 
At fixed At floating No interest average average
interest rates interest rates payable Total interest rate period
£m £m £m £m % Years
Sterling – 0.3 6.3 6.6 – –
US Dollar 44.7 68.0 1.1 113.8 8.1 7.2
Euro – 24.2 0.8 25.0 – –
Total 44.7 92.5 8.2 145.4 8.1 7.2
Floating rate financial liabilities mainly comprise bank borrowings and overdrafts bearing interest at commercial rates. 58 THE LAIRD GROUP PLC
Notes to the accounts
note
21 Financial instruments (continued)
The financial liabilities of the Group comprised: 2003 2002
£m £m
Total borrowings 97.4 137.2
Other creditors due after more than one year 1.0 0.8
Provisions for liabilities and charges 7.6 7.4
106.0 145.4
Financial assets
The interest rate and currency profile of the financial assets of the Group is set out below:
As at 31 December 2003 At floating No interest
interest rates receivable Total
£m £m £m
Sterling 26.9 0.1 27.0
US Dollar 3.0 1.1 4.1
Euro 4.5 – 4.5
Other 2.9 0.1 3.0
Total 37.3 1.3 38.6
As at 31 December 2002 At floating No interest
interest rates receivable Total
£m £m £m
Sterling 47.3 3.5 50.8
US Dollar 11.1 0.7 11.8
Euro 6.1 – 6.1
Other 6.1 0.1 6.2
Total 70.6 4.3 74.9
Floating rate financial assets attract interest at relevant short term rates.
The financial assets of the Group comprised: 2003 2002
£m £m
Cash and deposits 37.3 70.6
Debtors due after more than one year 1.3 4.3
38.6 74.9
Currency exposures
A substantial proportion of the Group’s turnover is generated by overseas operations. Currency exposure is largely on translation
as the value of cross currency transactions is limited with most of the transactions in local currency. The Group’s policy is for
subsidiaries to take out forward foreign exchange contracts to cover their net transaction exposures to foreign currencies.
Balance sheet translation exposures are partly hedged by funding overseas subsidiaries with local currency borrowings.
The Group does not have any significant transactional currency exposures on financial assets and liabilities on which net currency
gains and losses would be recognised in the profit and loss account.
Maturity of financial liabilities 2003 2002
£m £m
In one year or less 25.2 4.8
Between years one and two 10.1 100.2
In years three to five 49.7 9.1
In more than five years 21.0 31.3
106.0 145.4 THE LAIRD GROUP PLC 59
Notes to the accounts
note
21 Financial instruments (continued)
Undrawn committed borrowing facilities
The Group’s financial policy is to maintain committed borrowing facilities, which provide substantial headroom over and above its
day to day borrowing requirements. 
The undrawn committed facilities available at 31 December were as follows: 2003 2002
£m £m
Expiring in year one 0.2 –
Expiring in year two – 65.1
Expiring in more than four years 101.1 –
101.3 65.1
Fair value of financial instruments
The US Private Placement loans with a book value of £37.2m have an estimated fair value of £42.1m which has been calculated
by discounting cash flows at prevailing coupon rates as at 31 December 2003.
There are no material differences between fair value and book value on any of the other financial instruments.
22 Operating lease commitments
The Group had annual commitments under non–cancellable operating leases which expire as follows:
2003 2002
Land and Land and
buildings Other buildings Other
£m £m £m £m
Within one year 1.2 0.2 0.8 0.2
Between one and five years 3.5 0.7 3.8 0.7
In five years or more 2.0 – 1.6 –
6.7 0.9 6.2 0.9
23 Other creditors
Group Company
2003 2002 2003 2002
£m £m £m £m
Due within one year:
Trade creditors 42.6 37.0 – –
Taxation 3.4 3.3 – –
Social security costs 0.9 0.7 – –
Dividend payable 8.0 7.7 8.0 7.7
Other creditors 22.8 13.8 8.3 0.9
Accruals and deferred income 12.2 10.7 3.7 3.0
89.9 73.2 20.0 11.6
Due after more than one year:
Amounts owed to subsidiary undertakings – – 184.3 181.7
Taxation 7.0 8.5 – –
Other creditors 1.0 0.7 – –
Accruals and deferred income – 0.1 – –
8.0 9.3 184.3 181.7 60 THE LAIRD GROUP PLC
Notes to the accounts
note
24 Deferred taxation
Group Company
2003 2002 2003 2002
£m £m £m £m
The main components of the deferred tax provisions, 
included within provisions for liabilities and charges, 
are as follows:
Accelerated capital allowances 6.0 5.3 – –
Tax losses carried forward (2.0) (2.7) – –
Chargeable gains 3.5 5.8 3.5 5.8
Other timing differences (3.5) (1.9) 0.3 0.1
4.0 6.5 3.8 5.9
Movements during the year were: Group Company
£m £m
At 1 January 2003 6.5 5.9
Provided in the year 0.4 0.2
Released in the year (2.9) (2.3)
At 31 December 2003 4.0 3.8
25 Provisions for liabilities and charges
Deferred
Pensions tax Other Total
Group £m £m £m £m
At 1 January 2003 1.0 6.5 7.4 14.9
Provided 0.4 0.4 0.1 0.9
Utilised/released (0.2) (2.9) 0.1 (3.0)
Reclassified from other creditors 0.6 – 0.1 0.7
Differences on exchange – – (0.1) (0.1)
At 31 December 2003 1.8 4.0 7.6 13.4
Other provisions carried forward at 31 December 2003 include £5.4m in respect of potential warranty and other claims arising
from the disposal of businesses whilst pension provisions are in respect of unfunded pension obligations.
Deferred
Pensions tax Other Total
Company £m £m £m £m
At 1 January 2003 – 5.9 – 5.9
Provided 0.4 0.2 – 0.6
Released – (2.3) – (2.3)
Reclassified from other creditors 0.6 – – 0.6
At 31 December 2003 1.0 3.8 – 4.8
26 Share capital
2003 2002
£m £m
Ordinary shares of 25p each
Authorised 50.0 50.0
Issued and fully paid 35.8 35.7 THE LAIRD GROUP PLC 61
Notes to the accounts
note
26 Share capital (continued)
During the year the issued share capital was increased by the issue of 290,000 ordinary shares with a nominal value of £72,500
under the Company’s 1994 executive share option scheme for a consideration of £593,000. 143,171,694 ordinary shares of 25p
each were in issue at the year end.
At 31 December 2003 options to subscribe for 4,792,075 ordinary shares at prices between 143.5p and 456.5p were
outstanding under the Company’s executive share option schemes. Options outstanding under the schemes are held by 37
individuals and are exercisable at various times up to 10 December 2012. No further options have been granted since the year end.
27 Investment in own shares
2003 2002
£m £m
Group and Company
Own shares held by ESOP 2.9 2.9
The investment in own shares is held by the Company ESOP Trust as described on page 35. The investment of £2.9m
(2002 £2.9m) is a loan by the Company to the Trust. At 31 December 2003 the Trust held 1,064,131 shares of which 484,000
shares relate to the Long Term Incentive Plan. 49,131 shares relate to the annual Group performance incentive scheme with the
balance being unallocated shares. The shares held by the Trust had a total market value at that date of £2.9m (2002 £1.7m),
of which £0.1m (2002 £0.2m) relates to performance bonus awards.
28 Movements on reserves Profit
Revaluation and loss
reserve account
Group £m £m
At 1 January 2003 3.2 57.8
Profit for the year –11.5
Transfer between reserves (0.8) 0.8
Long Term Incentive Plan allocation – 0.4
Exchange movements – (13.7)
Tax on exchange differences – 2.1
At 31 December 2003 2.4 58.9
The cumulative amount of goodwill set off against reserves at 31 December 2003 is £79.9m of which £55.5m has extinguished a
special reserve and £24.4m has been set off against the profit and loss account.
Company
A profit after taxation of £1.3m (2002 £16.4m) has been dealt with in the accounts of the Company after debiting exchange
losses of £5.7m (2002 £7.6m) and crediting dividends from subsidiary undertakings of £7.8m (2002 £36.3m). The special reserve
of £55.5m was created by a transfer from the share premium account under High Court Sanction in December 1989. No profit
and loss account is presented for the Company as permitted by section 230 of the Companies Act 1985.
29 Contingent liabilities
At 31 December 2003 the Company had contingent liabilities as follows:
(a) guarantees in respect of US Private Placement loans of £37.2m (2002 £44.7m) and other borrowings of subsidiary
undertakings under the Company’s bilateral loan facilities of £13.8m (2002 £33.4m); and  
(b) guarantees relating to the performance of contracts of subsidiary undertakings.
There are legal claims against the Company or its subsidiary undertakings but none where the Board takes the view that it is likely
that damages will be awarded against the Group which would have a materially adverse effect on its financial position.  
Certain subsidiary undertakings had contingent liabilities at 31 December 2003 in respect of hire of plant under leasing contracts. 62 THE LAIRD GROUP PLC
Principal subsidiaries
The following were the principal subsidiary undertakings at 31 December 2003. All subsidiary undertakings are wholly owned and
operate principally in the country of incorporation or registration unless stated otherwise. The list excludes (under the provisions of
section 231 of the Companies Act 1985) certain subsidiary undertakings which do not materially affect the accounts.
Country of 
incorporation 
Name of company or registration Nature of business
Laird Technologies
APM, Inc.* USA EMI shielding
BMI, Inc.* USA EMI shielding
Laird Technologies (Shanghai) Limited* China EMI shielding
Laird Technologies GmbH.* Germany EMI shielding
Laird Technologies, Inc.* USA EMI shielding
Laird Technologies Japan, Inc.* Japan EMI shielding
Laird Technologies Korea Y.H.* Korea EMI shielding
Laird Technologies Ltd.* Scotland EMI shielding
Laird Technologies S.A.S.* France EMI shielding
Laird Technologies (SEA) PTE Ltd.* Singapore EMI shielding
Laird Technologies (Shenzhen) Limited China EMI shielding
Laird Technologies, s.r.o.* Czech Republic EMI shielding
Laird Technologies Taiwan, Inc.* Taiwan EMI shielding
Nippon RFI Shielding Co. Limited* Japan EMI shielding
Orcus Technologies, Inc.* USA Thermal shielding
R&F Products, Inc.* USA EMI shielding
Tianjin Laird Technologies Limited China EMI shielding
Warth International Ltd.* England EMI and thermal shielding
Laird Security Systems
Amesbury Group, Inc.* USA Seals and extrusions
Amesbury Group – Plastics Profiles, Inc.* USA Window components
Balance Systems, Inc.* USA Window balances
Caledonian Lock and Safe Ltd. Scotland Security systems
ERA Products Ltd. England Security locks and hinges
EWS (Manufacturing) Ltd.* England Window components
FPI, Inc*  (“Fastek”) USA Window components
Intron Limited (“Homesafe”) England Composite doors
Laird Security Hardware Ltd. England Door and window components
Laird Security Systems (Ningbo) Limited* China Door and window components
Linear Ltd. England Building seals
Omega Spring Technology Ltd.* England Window components
Permacell Finesse Ltd. England Window systems
Sash Controls, Inc.* USA Door components
Ventrolla Ltd. England Weather seal installation
Laird Plastics
Laird Plastics, Inc.* USA Plastics distribution
Laird Plastics (Canada), Inc.* Canada Plastics distribution
*held by a subsidiary undertaking Trading results 2003 2002 2001 2000 1999
£m £m £m £m £m
Turnover
– continuing operations 428.8 424.3 428.5 403.7 340.3
– discontinued operations – 69.0 152.9 692.9 793.1
428.8 493.3 581.4 1,096.6 1,133.4
Operating profit
– continuing operations
before exceptional items and 
goodwill amortisation 41.4 36.2 30.2 37.0 26.8
exceptional items (5.9) (7.0) (1.5) – –
goodwill amortisation (10.6) (10.6) (10.4) (4.1) (0.6)
24.9 18.6 18.3 32.9 26.2
– discontinued operations – (9.3) (4.1) 19.0 41.4
24.9 9.3 14.2 51.9 67.6
Gain on disposal of fixed assets – ––– 6.3
Loss on disposal of businesses – (58.8) – (52.7) (0.1)
Profit/(loss) before interest and tax 24.9 (49.5) 14.2 (0.8) 73.8
Interest (4.0) (4.9) (6.0) (12.1) (7.5)
Profit/(loss) before tax 20.9 (54.4) 8.2 (12.9) 66.3
Taxation 2.9 (5.8) (5.5) (18.7) (25.3)
Profit/(loss) for the year 23.8 (60.2) 2.7 (31.6) 41.0
Dividends (12.3) (11.9) (15.8) (23.5) (22.8)
Retained profit/(loss) 11.5 (72.1) (13.1) (55.1) 18.2
Net assets
Fixed assets 245.0 244.0 305.5 303.9 292.6
Cash less short term borrowings 13.3 66.5 68.2 230.4 16.0
Other net current assets 37.3 46.7 53.7 41.6 75.6
Total assets less current liabilities 295.6 357.2 427.4 575.9 384.2
Borrowings (due after more than 1 year) (73.4) (133.1) (134.9) (278.3) (55.5)
Other non-current liabilities/provisions (21.4) (24.2) (34.1) (20.4) (23.2)
200.8 199.9 258.4 277.2 305.5
Ordinary share capital 35.8 35.7 35.7 35.7 35.7
Reserves*** 165.0 164.2 222.7 241.5 269.8
Shareholders’ funds 200.8 199.9 258.4 277.2 305.5
Key statistics
Profit before tax from continuing operations 37.4 31.8 25.2 34.9 30.8
Earnings per share from continuing operations* 21.6p 17.3p 12.7p 16.4p** 15.6p**
Earnings per share 16.8p (42.5)p 1.9p (22.2)p 28.8p
Dividends per share 8.6p 8.3p 11.1p 16.5p 16.0p
Dividend cover 1.9 – 0.2 – 1.8
Dividend cover (continuing operations)* 2.5 2.1 1.2 1.0 1.0
* before exceptional items and goodwill amortisation
** not restated to take into account FRS 19 (Deferred tax)
*** after deducting investment in own shares in 2003 and 2002 only
Five year summary
THE LAIRD GROUP PLC 63 Shareholder information
64 THE LAIRD GROUP PLC
Financial calendar
31 December 2003 Financial year end
11 March 2004 Announcement of results
7 May 2004 Annual General Meeting
7 May 2004 Record date for final dividend
4 June 2004 Payment of final dividend
August 2004 Announcement of half year results
November 2004 Normal record date for 
interim dividend
December 2004 Normal payment date for 
interim dividend
December 2004 Trading update on progress in 2004
31 December 2004 Financial year end
Administrative enquiries
Administrative enquiries concerning shareholdings in
The Laird Group PLC, such as the loss of a share certificate,
dividend payments, or a change of address should be directed,
in the first instance, to the Registrar whose address is:
Capita Registrars
The Registry, 34 Beckenham Road
Beckenham, Kent BR3 4TU
Telephone 0870 162 3100
Telephone (overseas) +44 20 8639 2157
www.capitaregistrars.com
Correspondence should refer to The Laird Group Public Limited
Company and state clearly the registered name and address of 
the shareholder. Please notify the Registrar promptly of any 
change of address.
Dividend bank mandates
Should you wish dividends to be paid directly into a bank or
building society account and notification to be sent to your
shareholder register address, please contact the Company’s
Registrar, Capita Registrars, for a dividend mandate form.
Advisers
Stockbrokers
Cazenove & Co. Ltd
Financial advisers
Lazard & Co., Limited
N M Rothschild & Sons Limited
Principal bankers
HSBC Bank plc
Principal lawyers
Ashurst 
Proskauer Rose LLP
On-line information
Copies of the financial statements, the Notice of Meeting, 
recent press releases and the Articles of Association 
are available on www.laird-plc.com.
Shareholders can also use the link to the Registrar
(www.capitaregistrars.com) to obtain secure access on-line 
to their personal shareholding details on the Company’s
share register.
Analysis of shareholders as at 31 December 2003
Number Total
Size of shareholding of holders % of total holding % of total
Up to 5,000 shares 4,252 88.7 4,456,644 3.1
5,001 to 50,000 shares 348 7.3 4,620,177 3.2
50,001 to 200,000 shares 99 2.1 10,097,998 7.1
Over 200,000 shares 94 1.9 123,996,875 86.6
Total 4,793 100.0 143,171,694 100.0 THE LAIRD GROUP PLC 65
The modern face of Laird reflects the Group’s resilience as
well as its readiness and ability to adapt to changing market
conditions; skills which have been repeatedly called upon
during its 140 years of existence.
The early years
Founded in 1864, Laird’s principal activities during its first
100 years focused on the United Kingdom’s heavy
engineering industry, including shipbuilding, ship repairing,
aircraft manufacturing, the production of steel and the
manufacture of mass transit railway carriages and equipment.
For many years these businesses prospered until a prolonged
downturn began to take a firm hold on the heavy engineering
industry. It became clear that a radical change to the Group’s
activities was necessary to ensure future growth and in
recognition of this a divestment programme for these major
heavy engineering activities was commenced during the
1970s.
The Eighties and Nineties
In the early 1980s a new course was set for Laird with
the focus turning to the Group’s automotive interests in
Continental Europe and to its service industries in the
United States. By a strategy of internal investment and
acquisition these businesses were developed and grew
substantially. By the late 1980s the Group’s global reach
was evident, with 80% of profits arising from activities
outside the United Kingdom.
This pace of change continued during the 1990s, 
a decade that saw Laird develop successful businesses in 
the electronics industry and in the supply of a comprehensive
range of security hardware products for the residential
buildings and home improvement markets. At the beginning
of the decade over 70% of Laird’s profits were dependent on
the Continental European automotive industry; however, by
the late 1990s its activities outside the automotive industry
had grown to represent more than half the Group’s interests.
2000 and beyond
The new Millennium saw Laird take further actions to
reposition itself, focusing on specialist markets where its
businesses could hold leading positions and where there
were opportunities for profitable growth. The automotive 
and computer assembly activities were divested, as their
markets became subject to increasing competitive pressures,
low growth and over–capacity. 
The Group’s interests in the electromagnetic interference
shielding industry were strengthened by implementing
a successful acquisition programme. Laird is now the 
global market leader in this field; and has a growing position
as a provider of thermal management products and solutions
to the electronics industry. Laird’s Security Systems business
continues to grow and thrive, with leading positions in both
its UK and US markets, while the Group is also now the
largest independent distributor of plastics products in North
America. Laird’s increasing presence in the growing markets
of Asia provides proximity to its customers as well as
a lower-cost supply base, thus beginning an exciting
new chapter in the Group’s history.
Laird is committed to creating value for its shareholders
through a partnership of customers, employees and
suppliers, as well as maintaining high environmental and
ethical standards in the countries in which it operates. 
With its global presence and leading positions in its chosen
markets, Laird is well-equipped to compete in the 
third Millennium and faces the future with confidence.
The Laird Group – 
a history of successful change
Designed and produced by Appetite • Printed by royle corporate print • Photography by Andrew Molyneux and Phil Sayer THE LAIRD GROUP PLC
3 ST JAMES’S SQUARE
LONDON SW1Y 4JU
(020) 7468 4040
www.laird-plc.com