FULMAR plc
ANNUAL REPORT & ACCOUNTS 2004
Fulmar plc
The Orion Centre
108 Beddington Lane
Croydon
Surrey CR0 4YY
www.fulmar .com
FULMAR plc                   ANNUAL REPORT & ACCOUNTS 2004  CONTENTS 1
Fulmar plc Annual Report & Accounts 2004
Directors, Officers and Professional Advisers 2
Financial Highlights 3
Chairman’s Statement 5
Chief Executive’s Review 7
Directors’ Report 10
Corporate Governance 13
Statement of Directors’ Responsibilities 15
Directors’ Remuneration Report 16
Independent Auditors’ Report 18
Consolidated Profit and Loss Account 20
Consolidated Balance Sheet 21
Company Balance Sheet 22
Consolidated Cash Flow Statement 23
Notes to the Accounts 24
Five Year Review 43
Notice of Meeting 44 DIRECTORS, OFFICERS AND PROFESSIONAL ADVISERS 2
Fulmar plc Annual Report & Accounts 2004
J D DUTTON FCA (45)* 
Non-executive Chairman. He is the Chief Executive of Oasis Trust, a global charity. Joined the board in 2001.
M E TAYLOR (57) 
Chief Executive. Founded Fulmar in 1971 and has been Chief Executive since then.
D J HARRIS FCA (59) 
Finance Director and Company Secretary. Joined the board in 1988. He was previously a partner in a firm of 
Chartered Accountants where he specialised in the printing industry. 
M A AUSTIN MBA (53) 
Marketing Director. Joined the board in 1996 having previously been group marketing manager for graphic systems 
at Agfa-Gevaert. 
J K McKAY FCA (55)†
Senior Independent Non-executive Director. Joined the board in 2004 having previously been an audit partner at 
Deloitte & Touche LLP. 
* Chairman of the audit committee and member of the remuneration and nominations committee.
† Chairwoman of the remuneration and nominations committee and member of the audit committee.
REGISTERED OFFICE
The Orion Centre, 108 Beddington Lane, Croydon CR0 4YY (Company number 1031732)
BANKERS
National Westminster Bank plc, Corporate Banking South East, Turnpike House, 123 High Street, Crawley RH10 1DQ
SOLICITORS
Norton Rose, Kempson House, Camomile Street, London EC3A 7AN
INDEPENDENT AUDITORS
Deloitte & Touche LLP, Chartered Accountants, Global House, High Street, Crawley RH10 1DL
REGISTRARS
Capita IRG plc, The Registry, 34 Beckenham Road, Beckenham BR3 4TU
STOCKBROKERS
Arbuthnot Securities Limited, Arbuthnot House, 20 Ropemaker Street, London EC2Y 9AR
PROFESSIONAL ADVISERS
DIRECTORS AND OFFICERS FINANCIAL HIGHLIGHTS 3
Fulmar plc Annual Report & Accounts 2004
2003 2004
Before Before
Exceptional Exceptional Total Exceptional Exceptional Total
Items Items 2004 Items Items 2003
£000 £000 £000 £000 £000 £000
Turnover 42,732 – 42,732 39,928 – 39,928
Operating profit 4,004 (303) 3,701 2,888 – 2,888
Operating margin 9% – 9% 7% – 7%
Profit before taxation 3,414 (335) 3,079 2,220 896 3,116
Taxation (1,064) 100 (964) (736) 80 (656)
Profit after taxation 2,350 (235) 2,115 1,484 976 2,460
Dividends (1,402) – (1,402) (1,441) – (1,441)
Retained profit 
for the year 948 (235) 713 43 976 1,019
Earnings per share 8.5p (0.8)p 7.7p 5.4p 3.5p 8.9p
Dividend per share 5.2p 5.2p
Capital expenditure 1,132 3,527
Net assets per share 92.5p 89.4p BOOK PRINTING The improvements in our production facilities at BOOKMARQUE, the group’s mass market
paperback book operation, have lifted our capacity to approximately 50 million books, against the 30 million
books actually produced in 2004. CHAIRMAN’S STATEMENT 5
Fulmar plc Annual Report & Accounts 2004
While market conditions in the group’s principal activity, commercial printing, remain highly competitive, it is pleasing to
announce substantially improved underlying results.
The figures in this paragraph exclude the exceptional items in both 2003 and 2004 referred to below. Turnover for the year
increased by 7% to £42.73m from £39.93m. Operating profit increased by 39% to £4.00m from £2.89m, representing an
operating margin of 9% (2003 – 7%). Profit before tax increased by 54% to £3.41m from £2.22m, representing a pre-tax
margin of 8% (2003 – 6%). Earnings per share increased by 57% to 8.5p from 5.4p.
The £0.34m exceptional charge in 2004 relates mainly to the costs of reorganisation and relocation of W E Baxter in May 2004
and related loss on sale of fixed assets, together with the costs of closure of the specialist greetings card finishing department
within Royle Corporate Print. The £0.90m exceptional gain in 2003 relates mainly to the sale of unused freehold properties.
After exceptional items, operating profit was up 28% at £3.70m from £2.89m, pre-tax profit was down 1% at £3.08m 
from £3.12m, and earnings per share were down 13% at 7.7p from 8.9p.
Year end equity shareholders’ funds were £24.94m, up from £24.77m, giving net assets per share of 92.5p, up from 
89.4p, following the purchase by the company for cancellation of 750,000 of its ordinary shares at 71.5p per share, for 
a total consideration of £0.54m. Year end net indebtedness reduced to £9.10m from £12.95m with resultant gearing of 
36% (2003 – 52%), reflecting lower than normal levels of capital expenditure at £1.13m (2003 – £3.53m) and the £1.6m
proceeds from the sale in 2003 of a freehold property in Lewes. Net interest payable at £0.59m (2003 – £0.67m) was 
covered 6.8 times (2003 – 4.3 times) by operating profit before exceptional items.
Our commercial and financial printing businesses successfully reversed the decline in sales experienced in 2003, increasing
turnover by 4% to £28.94m (2003 – £27.74m) despite the continuing weakness of demand and pressures on prices. Our 
book related businesses continue to do well, also increasing turnover, to £13.79m (2003 – £12.19m), up 13%; this reflects
good levels of demand for both our jacket and cover services as well as for mass market paperback books.
Our group continues to achieve awards success with Royle Corporate Print being voted ‘Environmental Company of the Year’
and highly commended in the ‘Report and Accounts’ category in the Printing World magazine annual awards. Fulmar Colour
similarly achieved awards success, being voted overall winner in the McNaughton Review.
The improved trading results, together with the continuing awards success, have been achieved through the strenuous efforts
of our staff and I commend them for their commitment in this competitive market.
The directors are recommending an unchanged final dividend of 3.4p per share, which, if approved at the AGM on 11 May
2005, will be paid on 18 May 2005 to those shareholders on the register at the close of business on 22 April 2005. Together
with the unchanged interim dividend per share of 1.8p paid on 8 November 2004, dividends per share total an unchanged
5.2p, which are covered 1.6 times (2003 – 1.0 times) by earnings per share before exceptional items.
Our commercial printing businesses have benefited from some increase in demand, but price pressure remains. Our book
related businesses operate in a more benign commercial environment. All our businesses have under-utilised capacity and 
as a result would benefit from any upturn in activity.
Jonathan Dutton, Chairman 
23 March 2005  Our COMMERCIAL AND FINANCIAL PRINTING businesses successfully reversed the decline in sales 
experienced in 2003, INCREASING TURNOVER BY 4% despite the continuing weakness of demand and
pressures on prices. CHIEF EXECUTIVE’S REVIEW 7
Fulmar plc Annual Report & Accounts 2004
COMMERCIAL AND FINANCIAL PRINTING
Our commercial and financial printing operations accounted for 68% of group turnover (2003 – 69%) producing
advertising literature, corporate brochures, annual reports and overnight City financial print.
These businesses have achieved a 4% increase in sales to £28.94m (2003 – £27.74m) against a background of continuing
weakness of demand and severe price pressures.
Due to relatively high levels of investment in prior years, there was no significant capital expenditure in our commercial 
and financial printing businesses during the period under review and we do not anticipate any change during 2005.
As a result of continuing losses, W E Baxter was relocated and reorganised in May 2004 and now shares the Mitcham
premises of Pegasus Colourprint. The resultant reduced fixed costs and shared facilities benefit both companies.
Royle Corporate Print, our specialist annual report printer, achieved a 13% increase in turnover, having been successful 
in attracting additional annual reports, together with an increase in commercial work undertaken during our traditionally
quieter periods, which resulted in the more efficient use of our capacity.
Fulmar Colour, our specialist high quality commercial printer, achieved a 9% increase in turnover, having taken steps to
strengthen its sales team. This growth was further enabled by the increased utilisation of existing capacity, particularly 
of the two Heidelberg 12 colour perfecting presses installed in 2002 and 2003.
BOOK PRINTING
Demand for the group’s book cover, jacket and mass market paperback book printing services, which accounted for 
32% of group turnover (2003 – 31%), remained high throughout this period. This enabled a return to double-digit 
growth of 13%.
We announced in July 2004 the purchase of our third Timson book press, which was successfully installed in 
January 2005. In preparation for this increase in print capacity, the manning of our existing binding line was changed, 
from two shift to three shift working, in the latter part of 2004.
A further investment of £0.24m was made with the installation, during the Christmas break, of a thermal, large format,
fully automatic plate setter, capable of outputting up to 24 plates per hour, being more than three times faster than 
the previous device and therefore able to keep pace with our increased demand for plates.
These improvements in our production facilities at Bookmarque, the group’s mass market paperback book operation, 
have lifted our capacity to approximately 50 million books, against the 30 million books actually produced in 2004.
Following the completion during 2004 of a 767 sq m (8,300 sq ft) extension to our jacket and cover production facility, 
we have increased the number of our printing presses deployed in The White Quill Press to five by transfer of a 6 colour
Speedmaster from elsewhere in the group following some reorganisation. Our group continues to achieve AWARDS SUCCESS with ROYLE CORPORATE PRINT being voted
‘Environmental Company of the Year’ and highly commended in the ‘Report and Accounts’ category in the
Printing World magazine annual awards. FULMAR COLOUR similarly achieved awards success, being voted
overall winner in the McNaughton Review. CHIEF EXECUTIVE’S REVIEW
CONTINUED
9
Fulmar plc Annual Report & Accounts 2004
BOOK PRINTING CONTINUED
Further investment was made during the year with the installation of two fully automatic thermal platesetters, replacing 
two older units coming to the end of their useful life. Additionally, an automatic cutting station was installed in 
July 2004 to enable us to keep pace with the rapidly increasing numbers of paperback book covers being produced.
FREEHOLD PROPERTY
The group sold, in 2003, a vacant freehold property in Lewes, previously occupied by W E Baxter, for an initial
consideration of £1.6m in cash. An additional subsequent minimum payment of £0.8m becomes due on receiving 
suitable planning consent. Conditional consent was granted in January 2005, subject to the completion of a section 
106 agreement.
OUTLOOK
Both our commercial printing businesses and our book production facilities are well organised and well invested, with
under-utilised capacity. Our group is therefore well prepared to gain advantage, should the modestly improved trading
conditions experienced during 2004, by the commercial printing businesses, continue through 2005.
Mike Taylor, Chief Executive
23 March 2005 DIRECTORS’ REPORT 10
Fulmar plc Annual Report & Accounts 2004
The directors present their annual report and the audited financial statements for the year ended 31 December 2004.
ACTIVITIES
The principal activity of the group is that of lithographic printing. 
An outline of the group’s developments during the year and future prospects are included in the Chairman’s Statement 
and Chief Executive’s Review.
DIVIDENDS
An interim dividend of 1.8p per share (2003 – 1.8p) was paid on 8 November 2004. The directors recommend the payment
of a final dividend of 3.4p per share (2003 – 3.4p) on 18 May 2005 to shareholders on the register at close of business 
on 22 April 2005. 
Total dividends amounted to £1,402,000 (2003 – £1,441,000) leaving a retained profit for the year of £713,000
(2003 – £1,019,000) to be transferred to reserves.
SHARE CAPITAL
During the year the company purchased, for cancellation, 750,000 ordinary 5p shares for £542,000 representing 2.7% 
of the class in issue prior to the purchase.
SUBSTANTIAL SHAREHOLDINGS
As at 7 March 2005, the company had been notified of the following interests in 3% or more of the issued share capital 
of the company (excluding directors):
Number of shares %
Hermes Investment Management 929,610 3.45
DIRECTORS AND THEIR INTERESTS
The directors who held office at the year end and their interests in the share capital of the company are as follows:
Ordinary shares of 5p each
31 December 2004 1 January 2004
(or later date of appointment)
Beneficial Under Beneficial Under
interests option interests option
No. No. No. No.
J D Dutton 7,530 – 7,530 –
M E Taylor 15,625,463 – 15,625,463 –
D J Harris 817,326 14,675 817,326 14,675
M A Austin 16,078 17,923 16,078 17,923
J K McKay ––––
J K McKay was appointed on 30 June 2004 and had no interests in the share capital of the company at that date. 
D H O’Shaughnessy was also a director until he retired on 28 September 2004. DIRECTORS’ REPORT 
CONTINUED
11
Fulmar plc Annual Report & Accounts 2004
Details of the directors’ share options are set out in note 4.
There were no changes in the above interests up to the date of this report. 
None of the directors had a material interest in any contract of significance with the company or any subsidiary during the year. 
None of the executive directors held any appointments outside the group during the year. 
M E Taylor retires by rotation and, being eligible, offers himself for re-election at the annual general meeting.
J K McKay was appointed as a director on 30 June 2004 and, being eligible, offers herself for election at the annual
general meeting.
EMPLOYMENT POLICIES
The group is committed to the recruitment and employment of people on merit, irrespective of race or gender. The group
also makes every effort to ensure that disabled people receive equal opportunities and are not discriminated against on the
grounds of their disabilities.
HEALTH, SAFETY AND ENVIRONMENTAL POLICIES
Great importance is attached to health, safety and the environment and the group has a strong culture of proactive
management, reinforced by regular internal monitoring and support at executive level. This is supported by the group’s
health and safety, and environmental policies.
CHARITABLE DONATIONS
The group made charitable donations of £2,000 during the year (2003 – £2,000).
SUPPLIERS’ PAYMENT
The group’s payment policy is in accordance with terms that are agreed with individual suppliers. Creditor days at 
31 December 2004 amounted to 73 days (2003 – 68 days). 
The company only incurs administrative expenses and the creditor days amounted to 56 days (2003 – 48 days).
INTERNATIONAL FINANCIAL REPORTING STANDARDS
The group has started its review of the impact of International Financial Reporting Standards on its financial statements,
which it will be required to report under with effect from 1 January 2005. The review is still in its early stages.
GOING CONCERN STATEMENT
After making enquiries, the directors have a reasonable expectation that the group has adequate resources to continue 
in operational existence for the foreseeable future. For this reason, the directors continue to adopt the going concern 
basis in preparing the financial statements.
ANNUAL GENERAL MEETING
Shareholders will find on pages 44 to 46 the notice of the forthcoming annual general meeting of the company to be 
held on 11 May 2005. 
In addition to the ordinary business of the meeting, three resolutions (numbered 6 to 8) are proposed as special business. DIRECTORS’ REPORT 
CONTINUED
12
Fulmar plc Annual Report & Accounts 2004
AUTHORITY OF DIRECTORS TO ALLOT SHARES
Resolutions 6 and 7 are similar to the authorities given to the directors at the last annual general meeting of the company.
By law, directors are not permitted to allot new shares (or to grant rights over shares) unless authorised to do so by
shareholders. In addition, directors require specific authority from shareholders before allotting new shares (or rights 
in respect of shares) for cash without first offering them to existing shareholders in proportion to their holdings.
Resolution 6 gives the directors the necessary authority for the period of five years from the date of the passing of such
resolution to allot shares up to an aggregate nominal amount of £449,234 (being equal to approximately one-third of 
the issued share capital of the company). 
Resolution 7 empowers the directors, for the period of five years from the date of the passing of such resolution, to 
allot shares for cash otherwise than to existing shareholders on a pro-rata basis, up to an aggregate nominal amount 
of £67,385, which is the equivalent of 5% of the issued share capital of the company. It also enables the directors, 
in the case of an issue by way of rights, to deal with fractional entitlements and to make such exclusions or other
arrangements as may be appropriate to resolve legal, regulatory or practical problems which might arise, particularly 
with regard to overseas shareholders.
It is intended that these authorities and powers are renewed at successive annual general meetings.
There is no present intention of issuing any ordinary shares, except perhaps in connection with the company’s share 
option scheme. As at 23 March 2005 the company holds no equity securities in treasury.
PURCHASE OF OWN SHARES 
Resolution 8 renews the authority for the company to make market purchases (within the meaning of section 163 of 
the Companies Act 1985) on the London Stock Exchange up to an aggregate of 2,695,405 ordinary shares (equivalent 
to 10% of the issued share capital of the company) at a minimum price per ordinary share of 5p and a maximum of 
105% of the average of the middle market quotations of the ordinary shares as derived from the London Stock Exchange
Daily Official List for the five business days immediately preceding the day on which that ordinary share is contracted to 
be purchased. This proposal should not be taken as an indication that the company will purchase shares at any particular 
price or indeed at all, and the directors will only consider making purchases if they believe that such purchases would 
result in an increase in earnings per share and are in the best interests of the shareholders.
The authority will expire at the conclusion of the next annual general meeting of the company, or, if earlier, the expiry 
of 15 months from the date of the passing of such resolution.
It is intended to renew this authority and power at successive annual general meetings.
AUDITORS
A resolution to re-appoint Deloitte & Touche LLP as the company’s auditors will be proposed at the forthcoming annual
general meeting.
Approved by the board of directors and signed on behalf of the board.
D J Harris FCA, Secretary
23 March 2005 CORPORATE GOVERNANCE 13
Fulmar plc Annual Report & Accounts 2004
The directors support The Combined Code on Corporate Governance issued in July 2003 (the ‘Combined Code’). 
The board sets out its report on how the group has applied the principles and whether it has complied with the 
Combined Code during the year.
APPLICATION OF THE PRINCIPLES
DIRECTORS
The board is responsible for the group’s strategic direction, and its operating and financial performance. The board
comprised three executive and two independent non-executive directors (three between 30 June and 28 September), 
all of whom met on eight occasions in 2004, following a formal agenda. 
Directors’ biographies are given on page 2.
The separate roles of Chairman and Chief Executive are clearly defined. The Chairman conducts board and shareholder
meetings and ensures that all directors are properly briefed. The Chief Executive is responsible for developing and 
co-ordinating the business and implementing group strategy.
There is an agreed procedure for the directors to take independent professional advice at the company’s expense, 
to have access to the Company Secretary and receive appropriate training where necessary, including an induction 
on appointment.
All directors are required to retire by rotation at least every three years when they can offer themselves for re-election if eligible.
All members of the remuneration and nominations committee met once during 2004. They monitor, review and make
recommendations to the board on all elements of the remuneration and performance of the directors of the company.
They also consider the award of options under the company share option plan and make recommendations to the board 
in respect of the appointment of directors of the company. The committee consists solely of non-executive directors, and 
its terms of reference are available from the Company Secretary on request. The report on remuneration is set out on 
pages 16 and 17.
Annual performance appraisals of the executive directors are conducted by the remuneration and nominations committee, 
and feedback given to the individuals throughout the year. The executive directors similarly appraise the performance of the
non-executive directors. There is ongoing evaluation of the board and its committees, by the directors, throughout the year.
RELATIONS WITH SHAREHOLDERS 
The company encourages meaningful dialogue with both its institutional and private investors. The executive directors
undertake presentations following the announcement of the interim and final results, and the directors are available 
for comment throughout the year and at the annual general meeting. CORPORATE GOVERNANCE
CONTINUED
14
Fulmar plc Annual Report & Accounts 2004
ACCOUNTABILITY AND AUDIT 
The responsibilities of the directors and auditors are set out on pages 15 and 18.
The board has established the necessary procedures to implement the Combined Code provisions, except as mentioned
below. These have been in place throughout 2004 and up to the date of approval of the financial statements.
There is an ongoing process for identifying, evaluating and managing the significant risks faced by the group and this
process is regularly reviewed.
The board of directors has overall responsibility for the group’s systems of internal control and reviewed them for their
effectiveness during the year by examining reports from individual directors and the external auditors. Any system of 
internal control can only provide reasonable but not absolute assurance against material misstatement or loss. 
The principal components of the systems for planning, executing, controlling and monitoring the group’s activities in 
order to achieve its objectives and minimise major risks are:
• an organisational structure with defined lines of responsibility and delegation of authority;
• a comprehensive budgeting and financial reporting system which enables the board to evaluate the performance of 
the group on a monthly basis and take action where necessary on a timely basis;
• continual review and development of the group’s internal control, risk management and management information systems;
• clearly defined guidelines for capital investment.
Steps continue to be taken to further embed internal control and risk management procedures into the operations 
of the business and to deal with areas of improvement which come to management’s and the board’s attention.
The board has reviewed the need for an internal audit function but does not consider it necessary at the current time.
All members of the audit committee met twice during 2004. They assist the board in discharging its duty to ensure that the
financial statements presented by the company to its shareholders conform with all legal requirements and that the group’s 
systems of internal control and whistle blowing procedures are adequate. They consider the re-appointment of auditors,
their fees, and the scope and findings of their audit. The committee consists solely of non-executive directors, 
and its terms of reference are available from the Company Secretary on request.
An account of the group’s position and prospects is given in the Chairman’s Statement and Chief Executive’s Review on
pages 5 to 9.
COMPLIANCE STATEMENT
Throughout the year ended 31 December 2004 the company has been in compliance with the Code provisions set out 
in Section 1 of the Combined Code except for the following matter:
• directors‘ notice and contract periods are set at more than one year as explained on page 16. STATEMENT OF DIRECTORS’ RESPONSIBILITIES 15
Fulmar plc Annual Report & Accounts 2004
United Kingdom company law requires the directors to prepare financial statements for each financial year which give 
a true and fair view of the state of affairs of the company and the group as at the end of the financial year and of the 
profit or loss of the group for that period. In preparing those financial statements, the directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any 
time the financial position of the company and to enable them to ensure that the financial statements comply with 
the Companies Act 1985. They are also responsible for the system of internal control, for safeguarding the assets of 
the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. DIRECTORS’ REMUNERATION REPORT 16
Fulmar plc Annual Report & Accounts 2004
The Directors’ Remuneration Report Regulations 2002 require the auditors to report to the company’s members on the
‘auditable part’ of the directors’ remuneration report and to state whether in their opinion that part of the report has been
properly prepared in accordance with the Companies Act 1985 (as amended by the Regulations). All information relating to
the ‘auditable part’ of the report is shown in note 4 to the accounts. In all other respects the report contains unaudited
information.
Information about the emoluments and share options of the directors is given in note 4 to the accounts. Their interests in
the share capital of the company are shown on pages 10 and 11.
The remuneration policy for executive directors is controlled by the remuneration and nominations committee of the 
board, comprising the independent non-executive directors, J K McKay and J D Dutton. Their aim is to ensure that the
remuneration packages for executive directors are designed to attract, motivate and retain high quality individuals. The
packages reflect the executives’ own responsibilities and the performance of the group as a whole.
The remuneration policy is as follows:
• competitive salaries are provided by reference to information on similar positions in the printing and related industries;
• each executive director will receive an annual bonus if the percentage increase in the group’s earnings per share in that
year exceeds a threshold of the percentage increase in the retail price index in that period plus 3%, such bonus to be at
a rate of 1.5% of the executive director’s basic salary for each 1% that the earnings per share exceeds the threshold;
• where circumstances exist beyond the scope of the policy (such as negative earnings per share in the prior year), the
remuneration and nominations committee will use its discretion to determine whether any bonus is payable and, if so,
the amount of such bonus. In forming its view, the committee will take account of the bonus arrangements set out in
the directors’ contracts;
• the company makes fixed payments into the group’s main defined contribution pension scheme having taken account 
of the level of basic salary;
• directors may be granted options under the share option plan and hold options under the sharesave scheme;
• a benefits package is provided including an appropriate company car, or alternative, and medical expense and
permanent health insurances;
• service contracts are of two years duration and are terminable by not less than two years notice by either party. Whilst
the committee acknowledges that there is a case for setting one year notice and contract periods, the committee
considers the current arrangements to be in the best interests of the group in maintaining the services of its key
directors. Any compensation payments will be determined having regard to the particular circumstances of the case.
The remuneration of the non-executive directors is determined by the board as a whole in line with fees paid to 
non-executive directors of similar companies. They are normally appointed under fixed term contracts of two years 
duration and are terminable by not less than one years notice by either party, except where mentioned below.  DIRECTORS’ REMUNERATION REPORT
CONTINUED
17
Fulmar plc Annual Report & Accounts 2004
The board appoints new non-executive directors following recommendations of suitable candidates from its professional
advisers, and subsequent interviews.
M E Taylor, who retires and offers himself for re-election, is engaged under a service contract which is terminable by not
less than two years notice by either party.
J K McKay, who also retires and offers herself for election, is engaged under a contract that expires on 29 June 2006.
The details of the directors’ contracts are summarised below:
Date of contract
J D Dutton 01.02.05
M E Taylor 13.03.96
D J Harris 13.03.96
M A Austin 13.03.96
J K McKay 30.06.04
The committee also approves the terms, conditions and allocation of the company share option and sharesave schemes.
Options are granted under the schemes in phases to offer long term incentives to the group’s employees (including the
company’s directors who participate with the other employees) and to allow them to have a stake in its growth.
The graph above shows the company’s total shareholder return performance, assuming dividends are reinvested, for 
the five years to 31 December 2004 compared with the return performance achieved by the FTSE All Share Index of the
London Stock Exchange.
Approved by the board of directors and signed on behalf of the board.
J K McKay FCA, 23 March 2005
2002 2000 2001 2003 2004
20
0
40
60
80
100
120
140
160
SOURCE: DATASTREAM
FULMAR plc - TOTAL RETURN INDEX
FTSE ALL SHARE - TOTAL RETURN INDEX INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF FULMAR PLC
18
Fulmar plc Annual Report & Accounts 2004
We have audited the financial statements of Fulmar plc for the year ended 31 December 2004 which comprise the
consolidated profit and loss account, the balance sheets, the consolidated cash flow statement and the related notes 
1 to 25. These financial statements have been prepared under the accounting policies set out therein. We have also
audited the information in the part of 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 
As described in the statement of directors’ responsibilities, the company’s directors are responsible for the preparation 
of the financial statements in accordance with applicable United Kingdom law and accounting standards. They are 
also responsible for the preparation of the other information contained in the annual report including the directors’
remuneration report. Our responsibility is to audit the financial statements and that part of the directors’ remuneration
report described as having been audited in accordance with relevant United Kingdom legal and regulatory requirements
and auditing standards. 
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 described as having been 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 regarding
directors’ remuneration and transactions with the company and other members of the group is not disclosed.
We review whether the corporate governance statement reflects the company’s compliance with the nine provisions of 
the July 2003 FRC Combined Code specified for our review by the Listing Rules of the Financial Services Authority, 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 the directors’ report and the other information contained in the annual report for the above
year as described in the contents section including the unaudited part of the directors’ remuneration report and consider
the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the
financial statements. INDEPENDENT AUDITORS’ REPORT
CONTINUED
19
Fulmar plc Annual Report & Accounts 2004
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 described as having been 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 circumstances of the company and the group, 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 described as having been 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 described as having been
audited.
OPINION
In our opinion the financial statements give a true and fair view of the state of affairs of the company and the group 
as at 31 December 2004 and of the profit of the group for the year then ended and the financial statements and the part
of the directors’ remuneration report described as having been audited have been properly prepared in accordance with 
the Companies Act 1985.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors
Crawley
23 March 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2004
20
Fulmar plc Annual Report & Accounts 2004
Before Before
Exceptional Exceptional Total Exceptional Exceptional Total   
Items Items 2004 Items Items 2003
Note £000 £000 £000 £000 £000 £000
Turnover 2 42,732 – 42,732 39,928 – 39,928
Cost of sales (28,008) – (28,008) (26,841) – (26,841)
Gross profit 14,724 – 14,724 13,087 – 13,087
Administrative expenses (10,720) (303) (11,023) (10,199) – (10,199)
Operating profit 3 4,004 (303) 3,701 2,888 – 2,888
(Loss)/profit on disposal 
of fixed assets – (32) (32) – 896 896
Profit on ordinary activities 
before interest 4,004 (335) 3,669 2,888 896 3,784
Interest receivable 
and similar income 29 – 29 46 – 46
Interest payable 
and similar charges 5 (619) – (619) (714) – (714)
Profit on ordinary activities 
before taxation 3,414 (335) 3,079 2,220 896 3,116
Tax on profit on 
ordinary activities 6 (1,064) 100 (964) (736) 80 (656)
Profit on ordinary activities 
after taxation 18 2,350 (235) 2,115 1,484 976 2,460
Equity dividends paid 
and proposed 7, 18 (1,402) – (1,402) (1,441) – (1,441)
Retained profit for 
the financial year 948 (235) 713 43 976 1,019
Earnings per ordinary share 8 8.5p (0.8)p 7.7p 5.4p 3.5p 8.9p
Diluted earnings 
per ordinary share 8 8.5p (0.8)p 7.7p 5.4p 3.5p 8.9p
All activities relate to continuing operations. There are no further recognised gains and losses in the current and preceding
financial years other than as stated in the profit and loss account. CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2004
21
Fulmar plc Annual Report & Accounts 2004
2004 2003
Note £000 £000
Fixed assets
Tangible assets 9 32,151 34,647
Current assets
Stocks 11 1,793 1,702
Debtors 12 11,773 12,049
Cash at bank and in hand 526 234
14,092 13,985
Creditors: amounts falling due within one year 13 (10,412) (10,305)
Net current assets 3,680 3,680
Total assets less current liabilities 35,831 38,327
Creditors: amounts falling due after more than one year 14 (7,134) (9,718)
Provisions for liabilities and charges 16 (3,760) (3,843)
24,937 24,766
Capital and reserves
Called up share capital 17 1,348 1,385
Share premium account 18 17,921 17,921
Capital redemption reserve 18 225 188
Profit and loss account 18 5,443 5,272
Total equity shareholders’ funds 24,937 24,766
These financial statements were approved by the board of directors on 23 March 2005.
Signed on behalf of the board of directors
M E Taylor, Director
D J Harris FCA, Director COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2004
22
Fulmar plc Annual Report & Accounts 2004
2004 2003
Note £000 £000
Fixed assets
Tangible assets 9 13,110 13,218
Investments 10 8,569 8,569
21,679 21,787
Current assets
Debtors 12 6,655 6,842
Cash at bank and in hand 3,600 4,439
10,255 11,281
Creditors: amounts falling due within one year 13 (3,112) (3,519)
Net current assets 7,143 7,762
Total assets less current liabilities 28,822 29,549
Creditors: amounts falling due after more than one year 14 (4,899) (5,750)
Provisions for liabilities and charges 16 (917) (845)
23,006 22,954
Capital and reserves
Called up share capital 17 1,348 1,385
Share premium account 18 17,921 17,921
Capital redemption reserve 18 225 188
Profit and loss account 18 3,512 3,460
Total equity shareholders’ funds 23,006 22,954
These financial statements were approved by the board of directors on 23 March 2005.
Signed on behalf of the board of directors
M E Taylor, Director
D J Harris FCA, Director CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2004
23
Fulmar plc Annual Report & Accounts 2004
2004 2003
Note £000 £000
Net cash inflow from operating activities 22 6,444 7,721
Returns on investments and servicing of finance
Interest received 29 46
Interest paid (373) (388)
Interest element of finance lease and hire purchase rentals (246) (326)
(590) (668)
Taxation paid (659) (553)
Capital expenditure
Purchase of tangible fixed assets (1,132) (1,792)
Sale of tangible fixed assets 1,758 2,251
626 459
Equity dividends paid (1,427) (1,441)
Cash inflow before financing 4,394 5,518
Financing
Purchase of own shares (542) –
New secured loans – 270
Repayment of secured loans (965) (2,095)
Capital element of finance lease and hire purchase rentals (2,595) (2,923)
(4,102) (4,748)
Increase in cash 24 292 770 NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2004
24
Fulmar plc Annual Report & Accounts 2004
1 ACCOUNTING POLICIES
The financial statements are prepared in accordance with applicable United Kingdom accounting standards. The particular
accounting policies adopted are described below.
ACCOUNTING CONVENTION
The financial statements are prepared under the historical cost convention.
BASIS OF CONSOLIDATION
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings for 
all financial periods ended 31 December, except that subsidiaries held exclusively with a view to subsequent resale are
excluded from consolidation. For acquisitions made in the year the acquisition method of accounting is used. The results 
of subsidiaries are included in the consolidated profit and loss account from the date of acquisition.
GOODWILL
Goodwill represents the excess of the fair value of the cost of acquisition over the fair value of the separable net assets
acquired. For acquisitions made before 1998 goodwill has been eliminated against the consolidated profit and loss account
reserve as a matter of accounting policy. This goodwill would be charged in the consolidated profit and loss account on
subsequent disposal of the businesses to which it related. Goodwill arising on subsequent acquisitions is capitalised and
written off over its estimated useful life.
TANGIBLE FIXED ASSETS
No depreciation is provided on freehold land or assets in the course of construction. On other assets depreciation is
provided on cost or net book value in order to write off the cost less residual value over the estimated useful lives of 
the assets. The rates of depreciation are as follows:
• Freehold buildings and long leasehold land and buildings – 2% per annum
• Short leasehold land and buildings – over the term of the lease
• Plant and machinery – 10 – 25% per annum
• Motor vehicles – 20% per annum
• Fixtures, fittings and equipment – 10 – 25% per annum.
The group capitalises directly attributable interest on all tangible fixed assets in the course of construction. Rates of
capitalisation depend on whether a specific loan has been taken out (when the actual interest rate and interest paid is
used), or where the construction is financed by general borrowings (when a weighted average rate is calculated on all 
non-specific borrowings).
INVESTMENTS
Shares in group companies are stated in the parent company balance sheet at cost less provision for any impairment in value. NOTES TO THE ACCOUNTS
CONTINUED
25
Fulmar plc Annual Report & Accounts 2004
1 ACCOUNTING POLICIES CONTINUED
STOCKS
Stocks and work-in-progress are stated at the lower of cost and net realisable value. Cost includes materials, direct labour
and appropriate production overheads.
DEFERRED TAXATION
Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to pay more
tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates
and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in
periods different from those in which they are included in financial statements. Deferred tax is not provided on timing
differences arising from the revaluation of fixed assets where there is no commitment to sell the asset. Deferred tax assets
are recognised to the extent that it is regarded as more likely than not that they will be recovered. Deferred tax assets and
liabilities are not discounted.
FINANCIAL INSTRUMENTS
The group manages its financial risks using a limited number of financial instruments. These comprise cash and money
market deposits, bank loans and overdrafts, finance leases and other debtors and creditors arising directly from operations.
The group does not undertake any trading in financial instruments.
LEASES AND HIRE PURCHASE CONTRACTS
Assets obtained under finance leases and hire purchase contracts are capitalised at their fair value on acquisition and
depreciated over their estimated useful lives. The finance charges are allocated over the period of the lease in proportion 
to the capital element outstanding.
Operating lease rentals are charged to income in equal annual amounts over the lease term.
PENSION COSTS
For the defined benefit scheme the expected cost of providing pensions, as calculated periodically by professionally
qualified actuaries, is charged to the profit and loss account so as to spread the cost over the service lives of the 
scheme members in such a way that the pension cost is a substantially level percentage of current and expected 
future pensionable payroll.
Payments to the defined contribution schemes are charged to the profit and loss account in the period to which they relate.
2 TURNOVER
Turnover represents amounts derived from the provision of goods and services which fall within the group’s ordinary
activities after deduction of trade discounts and value added tax. The turnover and pre-tax profit, all of which arises 
in the United Kingdom, is attributable to the group’s principal activity. NOTES TO THE ACCOUNTS
CONTINUED
26
Fulmar plc Annual Report & Accounts 2004
3 OPERATING PROFIT
2004 2003
£000 £000
Operating profit is after charging:
Depreciation and amortisation
– Owned assets 2,266 2,021
– Leased assets 1,096 1,259
Rentals under operating leases
– Other operating leases 353 429
Auditors’ remuneration
– Audit fee 72 70
– Other fees 17 5
Exceptional item 303 –
The exceptional item relates to the reorganisation of two subsidiary companies.
4 INFORMATION REGARDING DIRECTORS AND EMPLOYEES
2004 2003
£000 £000
Staff costs during the year (including directors):
Wages and salaries 14,599 13,764
Social security costs 1,627 1,538
Pension costs 275 257
16,501 15,559
No. No.
Average number of persons employed (including directors):
Production 299 307
Sales and administration 120 124
419 431 NOTES TO THE ACCOUNTS
CONTINUED
27
Fulmar plc Annual Report & Accounts 2004
4 INFORMATION REGARDING DIRECTORS AND EMPLOYEES CONTINUED
Pension
Basic Benefits contri- Total Total
salary Fees in kind butions Bonus 2004 2003
£000 £000 £000 £000 £000 £000 £000
Individual directors’ 
emoluments:
J D Dutton –16––– 16 15
D H O’Shaughnessy –17––– 17 22
M E Taylor 132 – 1 43 102 278 173
D J Harris 126 – 1 12 96 235 135
M A Austin 97 – 10 1274 193 120
J K McKay –8 ––– 8 –
355 41 12 67 272 747 465
Three directors (2003 – three) are members of money purchase pension schemes.
At 31 At 1 Exercise Date from
December January price in which Expiry
Directors’ Share Options 2004 2004 pence exercisable date
Director and date of grant of option:
D J Harris
15 March 1996 3,246 3,246 154.0 15.03.99 14.03.06
7 October 1999 11,429 11,429 87.5 07.10.02 06.10.09
M A Austin
15 March 1996 6,494 6,494 154.0 15.03.99 14.03.06
7 October 1999 11,429 11,429 87.5 07.10.02 06.10.09
The options may not be exercised unless there has been a growth in the earnings per share over a three year, or 
longer, period from grant which exceeds the sum of the percentage increase in the Retail Prices Index and 2% 
over the same period.
The company’s share price at 31 December 2004 was 81.5p, and the range during the financial year was 
70.5p to 84.5p. 
M E Taylor controls the company. NOTES TO THE ACCOUNTS
CONTINUED
28
Fulmar plc Annual Report & Accounts 2004
5 INTEREST PAYABLE AND SIMILAR CHARGES
2004 2003
£000 £000
Bank loans and overdrafts 373 388
Finance leases and hire purchase contracts 246 326
619 714
6TAX ON PROFIT ON ORDINARY ACTIVITIES
2004 2003
£000 £000
United Kingdom corporation tax at 30% (2003 – 30%) 1,047 579
Deferred tax – origination and reversal of timing differences (83) 77
964 656
The tax assessed for the year differs to that resulting from applying the standard 30% rate of UK corporation tax as
explained below:
2004 2003
£000 £000
Profit on ordinary activities before tax 3,079 3,116
Tax at 30% (2003 – 30%) (924) (935)
Effects of:
Expenses not deductible for tax purposes (87) (86)
Capital allowances (less than)/ in excess of depreciation (83) 89
Utilisation of brought forward losses 64 339
Other differences (17) 14
Current tax charge for the year (1,047) (579)
Deferred tax has not been provided in respect of gains realised that have been rolled over into the acquisition cost of
replacement assets. This tax will become payable if the replacement assets are sold and further rollover relief is not
obtained. The estimated amount of tax that would become payable by the company and the group in these circumstances
is £167,000 (2003 – £167,000).
Group deferred tax assets of £381,000 (2003 – £435,000) and £1,289,000 (2003 – £1,289,000) 
(company £ nil (2003 – £ nil) and £868,000 (2003 – £868,000)) have not been recognised in respect of timing 
differences relating to revenue losses and capital losses respectively as there is insufficient evidence that the assets 
will be recovered due to the uncertainty of the availability of future profits against which the losses can be recovered. NOTES TO THE ACCOUNTS
CONTINUED
29
Fulmar plc Annual Report & Accounts 2004
7 EQUITY DIVIDENDS PAID AND PROPOSED
2004 2003
£000 £000
Interim paid – 1.8p per ordinary share (2003 – 1.8p) 485 499
Final proposed – 3.4p per ordinary share (2003 – 3.4p) 917 942
1,402 1,441
8 EARNINGS PER SHARE
Basic and diluted earnings per share are based on a profit of £2,115,000 (2003 – £2,460,000) and average ordinary shares
in issue during the year of 27,499,129 (2003 – 27,704,047). The additional earnings per share figures have been presented
because the exceptional items do not relate to the profitability of the group on an on-going basis.
9TANGIBLE FIXED ASSETS
Long Short Assets Office
Freehold leasehold leasehold in course equipment
land and land and land and of const- Plant and and
buildings buildings buildings ruction machinery vehicles Total
The Group £000 £000 £000 £000 £000 £000 £000
Cost
At 1 January 2004 8,556 5,664 113 737 37,964 1,843 54,877
Additions – – – 276 776 80 1,132
Disposals –––– (1,799) (243) (2,042)
Reclassification 1,013 – – (1,013) – – –
At 31 December 2004 9,569 5,664 113 – 36,941 1,680 53,967
Accumulated depreciation
At 1 January 2004 1,468 583 12 – 16,936 1,231 20,230
Charge for the year 136 113 10 – 2,884 219 3,362
Disposals –––– (1,550) (226) (1,776)
At 31 December 2004 1,604 696 22 – 18,270 1,224 21,816
Net book value
At 31 December 2004 7,965 4,968 91 – 18,671 456 32,151
At 31 December 2003 7,088 5,081 101 737 21,028 612 34,647 NOTES TO THE ACCOUNTS
CONTINUED
30
Fulmar plc Annual Report & Accounts 2004
9TANGIBLE FIXED ASSETS CONTINUED
Included in the net book value of plant and machinery and motor vehicles at 31 December 2004 are amounts of 
£8,659,000 (2003 – £10,705,000) relating to assets held under finance leases and hire purchase contracts.
Included within the cost of freehold land and buildings are amounts relating to land of £1,292,000 
(2003 – £1,292,000) which are not depreciated.
Included within the cost of long leasehold buildings and plant and machinery at 31 December 2004 are finance costs 
of £91,000 (2003 – £91,000) and £170,000 (2003 – £170,000) respectively.
Long Short Assets Office
Freehold leasehold leasehold in course equipment
land and land and land and of const- Plant and and
buildings buildings buildings ruction machinery vehicles Total
The Company £000 £000 £000 £000 £000 £000 £000
Cost
At 1 January 2004 7,498 5,664 113 737 1,674 313 15,999
Additions – – – 276 – 18 294
Disposals ––––– (38) (38)
Reclassification 1,013 – – (1,013) – – –
At 31 December 2004 8,511 5,664 113 – 1,674 293 16,255
Accumulated depreciation
At 1 January 2004 1,447 583 12 – 521 218 2,781
Charge for the year 124 113 10 – 117 38 402
Disposals ––––– (38) (38)
At 31 December 2004 1,571 696 22 – 638 218 3,145
Net book value
At 31 December 2004 6,940 4,968 91 – 1,036 75 13,110
At 31 December 2003 6,051 5,081 101 737 1,153 95 13,218
Included in the net book value of plant and machinery at 31 December 2004 are amounts of £1,006,000 
(2003 – £1,118,000) relating to assets held under finance leases and hire purchase contracts.
Included within the cost of freehold land and buildings are amounts relating to land of £1,292,000 
(2003 – £1,292,000) which are not depreciated.
Included within the cost of long leasehold buildings and plant and machinery at 31 December 2004 
are finance costs of £91,000 (2003 – £91,000) and £16,000 (2003 – £16,000) respectively. NOTES TO THE ACCOUNTS
CONTINUED
31
Fulmar plc Annual Report & Accounts 2004
10 INVESTMENTS HELD AS FIXED ASSETS
Shares in Subsidiary Undertakings
The Company £000
Cost and net book value
At 1 January 2004 and at 31 December 2004 8,569
Details of the company’s subsidiary undertakings, all of which are wholly owned, operate and are incorporated 
in Great Britain, are as follows:
Name Activity
Fulmar Colour Printing Company Limited Lithographic printers
Pegasus Colourprint Limited Lithographic printers
Quadracolor Limited Lithographic printers
Royle Print Limited* Lithographic printers
The White Quill Press Limited Lithographic printers
Bookmarque Limited Paperback book printers
W E Baxter Limited* Lithographic printers and manufacturers of loose leaf binders
Royle Financial Print Limited Financial document printers
Osier Graphics Limited Lithographic platemakers
Masterlith Limited Lithographic platemakers
Quadracolor Graphics Limited Lithographic platemakers
White Quill Repro Limited Lithographic platemakers
Delta Colour Proofing Limited Lithographic proofers
Surrey Proofing Limited Lithographic proofers
Royle Design Associates Limited Designers
Orion Print Finishers Limited Print finishers
W R Royle Group Limited Parent company
*Held by a subsidiary company.
Details of the company’s non-trading subsidiary undertakings have not been given because they are too numerous 
and do not materially affect the accounts.
All subsidiary undertakings have only ordinary share capital except Pegasus Colourprint Limited which also has 249,200
preferred ordinary shares, W E Baxter Limited which also has 6,690 preference shares and W R Royle Group Limited which
also has 16,600 preference shares. NOTES TO THE ACCOUNTS
CONTINUED
32
Fulmar plc Annual Report & Accounts 2004
11 STOCKS
The Group
2004 2003
£000 £000
Raw materials and consumables 744 649
Work-in-progress 1,014 1,018
Finished goods and goods for resale 35 35
1,793 1,702
12 DEBTORS
The Group The Company
2004 2003 2004 2003
£000 £000 £000 £000
Trade debtors 10,793 9,735 107 124
Amounts owed by subsidiary undertakings – – 6,048 6,314
Other debtors 498 1,805 424 342
Prepayments and accrued income 482 509 76 62
11,773 12,049 6,655 6,842
13 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
The Group The Company
2004 2003 2004 2003
£000 £000 £000 £000
Bank loans (see note 15) 950 975 816 800
Trade creditors 4,761 4,373 327 501
Obligations under finance leases and
hire purchase contracts (see note 20) 1,538 2,489 36 324
Amounts owed to subsidiary undertakings – – 551 821
Corporation tax 593 205 – –
Other taxation and social security 776 905 45 25
Accruals and deferred income 877 416 420 106
Proposed dividends 917 942 917 942
10,412 10,305 3,112 3,519 NOTES TO THE ACCOUNTS
CONTINUED
33
Fulmar plc Annual Report & Accounts 2004
14 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
The Group The Company
2004 2003 2004 2003
£000 £000 £000 £000
Bank loans (see note 15) 5,076 6,016 4,899 5,710
Obligations under finance leases and
hire purchase contracts (see note 20) 2,058 3,702 – 40
7,134 9,718 4,899 5,750
15 BANK LOANS
The Group The Company
2004 2003 2004 2003
£000 £000 £000 £000
Bank loans 6,026 6,991 5,715 6,510
Analysis of repayments:
Within one year or on demand 950 975 816 800
Between one and two years 943 936 844 800
Between two and five years 2,475 2,550 2,397 2,380
After five years 1,658 2,530 1,658 2,530
6,026 6,991 5,715 6,510
The group’s banking facilities are secured by legal charges over the assets of the group. The bank loans not wholly payable
within five years are repayable by monthly or quarterly instalments, and bear interest at 1% or 1.1% over the banks’ 
base rate.
The parent company has guaranteed certain bank loans, overdrafts and obligations under finance leases and hire purchase
contracts of the subsidiaries. The extent of this liability at the balance sheet date was £6,878,000 (2003 – £10,179,000).
However, the directors consider it to be highly improbable that any liability will crystallise. NOTES TO THE ACCOUNTS
CONTINUED
34
Fulmar plc Annual Report & Accounts 2004
16 PROVISIONS FOR LIABILITIES AND CHARGES
Deferred Tax
The provision for deferred tax is as follows:
The Group The Company
2004 2003 2004 2003
£000 £000 £000 £000
Capital allowances in excess of depreciation 3,983 4,076 917 845
Losses carried forward (223) (233) – –
3,760 3,843 917 845
Movement in deferred tax in the year:
The
The Group Company
2004 2004
£000 £000
At 1 January 2004 3,843 845
(Credit)/charge to profit and loss account (83) 72
At 31 December 2004 3,760 917
17 CALLED UP SHARE CAPITAL
2004 2003
£000 £000
Authorised
40,000,000 ordinary shares of 5p each 2,000 2,000
Called up, allotted and fully paid
26,954,047 (2003 – 27,704,047) ordinary shares of 5p each 1,348 1,385
During the year the company purchased, for cancellation, 750,000 ordinary 5p shares for £542,000 representing 2.7% of
the class in issue prior to the purchase.
The company operates a company share option plan where options granted may not be exercised unless there has been a
growth in the earnings per share over a three year, or longer, period from grant which exceeds the sum of the percentage
increase in the Retail Prices Index and 2% over the same period. At 31 December 2004 options to subscribe for 78,640
ordinary shares (2003 – 78,640) were held following the grant in 1996. The options may be exercised between 15 March
1999 and 14 March 2006 at 154p per share. Further options were held at 31 December 2004 to subscribe for 353,146
ordinary shares (2003 – 370,290), granted in 1999, which may be exercised between 7 October 2002 and 6 October 2009
at 87.5p per share. NOTES TO THE ACCOUNTS
CONTINUED
35
Fulmar plc Annual Report & Accounts 2004
18 COMBINED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS AND STATEMENT OF MOVEMENTS 
IN RESERVES
Called up Share Capital re- Profit
share premium demption and loss Total Total
capital account reserve account 2004 2003
The Group £000 £000 £000 £000 £000 £000
At 1 January 1,385 17,921 188 5,272 24,766 23,747
Profit attributable to members – – – 2,115 2,115 2,460
Dividends paid and proposed – – – (1,402) (1,402) (1,441)
Purchase of own shares (37) – 37 (542) (542) –
At 31 December 1,348 17,921 225 5,443 24,937 24,766
The cumulative amount of goodwill resulting from acquisitions that has been written off to reserves amounts to £4,227,000
(2003 – £4,227,000).
Called up Share Capital re- Profit
share premium demption and loss Total Total
capital account reserve account 2004 2003
The Company £000 £000 £000 £000 £000 £000
At 1 January 1,385 17,921 188 3,460 22,954 21,853
Profit attributable to members – – – 1,996 1,996 2,542
Dividends paid and proposed – – – (1,402) (1,402) (1,441)
Purchase of own shares (37) – 37 (542) (542) –
At 31 December 1,348 17,921 225 3,512 23,006 22,954
As permitted by Section 230 of the Companies Act 1985, the profit and loss account of the parent company is not
presented as part of these financial statements. The parent company’s profit after taxation for the year was 
£1,996,000 (2003 – £2,542,000). NOTES TO THE ACCOUNTS
CONTINUED
36
Fulmar plc Annual Report & Accounts 2004
19 FINANCIAL INSTRUMENTS
The group finances its operations with a combination of retained profits and borrowings. Short term flexibility is achieved by
the use of overdraft facilities.
The group has no financial assets other than cash at bank and in hand. All financial assets and liabilities are in sterling. 
The interest rate profile of the financial liabilities of the group is set out below:
2004 2003
£000 £000
At floating interest rates 9,622 13,182
The benchmark rate for determining interest payments on the financial liabilities at floating interest rates is bank base rate.
There are no material differences between fair and book values of financial instruments on a discounted cash flow basis.
Short term debtors and creditors (other than borrowings) have been excluded from the above disclosure. NOTES TO THE ACCOUNTS
CONTINUED
37
Fulmar plc Annual Report & Accounts 2004
20 FINANCIAL COMMITMENTS
The Group
2004 2003
£000 £000
Capital commitments:
Contracted for but not provided 1,350 50
The Group The Company
2004 2003 2004 2003
£000 £000 £000 £000
Obligations under finance leases and hire purchase contracts:
Minimum lease payments due:
Within one year 1,538 2,489 36 324
Between one and two years 885 1,603 – 40
Between two and five years 1,173 2,099 – –
3,596 6,191 36 364
Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.
Operating lease commitments
The group and the company were committed to making the following payments under operating leases in the next 
twelve months:
The Group The Company
Land and buildings Other Other
2004 2003 2004 2003 2004 2003
£000 £000 £000 £000 £000 £000
Leases which expire:
Within one year – – 32 31 3 –
Within two to five years – – 153 187 10 8
After five years 151 151 – – – –
151 151 185 218 13 8 NOTES TO THE ACCOUNTS
CONTINUED
38
Fulmar plc Annual Report & Accounts 2004
21 PENSION SCHEMES
The group operates a number of funded pension schemes which are administered independently of the group’s finances. 
The schemes covering the largest number of employees are of the defined contribution type. The group also operates a
defined benefit scheme.
The pension cost of the defined benefit scheme is assessed in accordance with the advice of qualified actuaries using the
attained age method. The main actuarial assumptions used in the most recent formal valuation were:
• an investment return of 6.5% per annum for pre-retirement and 5.5% for post-retirement
• salary increases of 4.5% per annum
• pension accrued before 1 April 1988: no increase per annum on non-GMP
• pension accrued between 1 April 1988 and 6 April 1997: 3% increase per annum on non-GMP
• pension accrued post 6 April 1997: 3% increase per annum.
The contribution levels are maintained in accordance with the advice of the pension scheme’s actuarial advisers at 12.2%.
The most recent formal valuation was at 1 April 2002. At that date the market value of the scheme’s assets was £5.64 million
and the actuarial valuation of the assets was sufficient to cover 109% of the benefits that had accrued to members after
allowing for expected future increases in earnings. The scheme also met the Minimum Funding Requirement set out in the
Pensions Act 1995.
The disclosures required by Financial Reporting Standard 17, Retirement Benefits, are set out below; the scheme assets are
valued at market value and the liabilities are estimated by an actuary using the projected unit method. The financial
assumptions used to calculate the scheme liabilities by the actuary under FRS 17 are:
2004 2003 2002
% %%
Discount rate 5.50 5.50 5.50
Inflation rate 2.50 2.50 2.50
Salary increases 2.50 2.50 2.50
Increase to pensions in payment 3.00 3.00 3.00
Rate of revaluation of deferred pensions in excess of GMP 2.50 2.50 2.50 NOTES TO THE ACCOUNTS
CONTINUED
39
Fulmar plc Annual Report & Accounts 2004
21 PENSION SCHEMES CONTINUED
The assets in the scheme and the expected rate of return were:
Long-term Long-term Long-term
expected expected expected
rate of rate of rate of
return Value return Value return Value
2004 2004 2003 2003 2002 2002
% £000 % £000 % £000
Equities 8.00 4,677 8.00 4,343 7.25 3,616
Bonds 5.00 447 4.75 564 4.50 572
Cash 4.25 341 4.00 141 4.50 178
5,465 5,048 4,366
The following amounts were measured in accordance with the requirements of FRS 17:
2004 2003 2002
£000 £000 £000
Total market value of assets 5,465 5,048 4,366
Present value of scheme liabilities (5,795) (5,172) (5,108)
Deficit in the scheme (330) (124) (742)
Related deferred tax asset 99 37 223
Net pension liability (231) (87) (519)
If the above amounts had been recognised in the financial statements, the group’s net assets and profit and loss reserve
would be as follows:
2004 2003 2002
£000 £000 £000 
Net assets excluding pension liability 24,937 24,766 23,747 
FRS 17 pension liability (231) (87) (519)
Net assets including FRS 17 pension liability 24,706 24,679 23,228
Profit and loss reserve excluding pension liability 5,443 5,272 4,253
FRS 17 pension liability (231) (87) (519)
Profit and loss reserve including FRS 17 pension liability 5,212 5,185 3,734 NOTES TO THE ACCOUNTS
CONTINUED
40
Fulmar plc Annual Report & Accounts 2004
21 PENSION SCHEMES CONTINUED
Analysis of amount that would be charged to operating profit:
2004 2003
£000 £000
Current service cost 51 89
Total operating charge 51 89
Analysis of the amount that would be credited to other finance income:
2004 2003
£000 £000
Expected return on pension scheme assets 376 294
Interest on pension scheme liabilities (281) (280)
Net return 95 14
Analysis of amount that would be recognised in the 
Statement of Total Recognised Gains and Losses (STRGL):
2004 2003
£000 £000
Actual return less expected return on pension scheme assets 157 459
Experience gains and losses arising on the scheme liabilities 37 165
Changes in assumptions underlying the present value of the scheme liabilities (507) –
Actuarial (loss)/gain recognised in the STRGL (313) 624
Movement in deficit during the year:
2004 2003
£000 £000
Deficit in scheme at beginning of year (124) (742)
Movement in year:
Current service costs (51) (89)
Contributions 63 69
Other finance income 95 14
Actuarial (loss)/gain (313) 624
Deficit in scheme at end of year (330) (124) NOTES TO THE ACCOUNTS
CONTINUED
41
Fulmar plc Annual Report & Accounts 2004
21 PENSION SCHEMES CONTINUED
History of experience gains and losses:
2004 2003
£000 £000
Difference between the expected and actual return on the scheme assets 157 459
Percentage of scheme assets 3% 9%
Experience gains and losses on scheme liabilities 37 165
Percentage of the present value of the scheme liabilities 1% 3%
Total actuarial (loss)/gain that would be recognised in the STRGL (313) 624
Percentage of the present value of the scheme liabilities 5% 12%
22 RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES
2004 2003
£000 £000
Operating profit 3,701 2,888
Depreciation charges 3,362 3,280
(Increase)/decrease in stocks (91) 206
(Increase)/decrease in debtors (1,249) 1,928
Increase/(decrease) in creditors 721 (581)
Net cash inflow from operating activities 6,444 7,721 NOTES TO THE ACCOUNTS
CONTINUED
42
Fulmar plc Annual Report & Accounts 2004
23 ANALYSIS OF CHANGES IN NET DEBT
At 1 At 31
January Cash December
2004 Flow 2004
£000 £000 £000
Cash at bank and in hand 234 292 526
Bank loans (6,991) 965 (6,026)
Finance leases and hire purchase contracts (6,191) 2,595 (3,596)
(12,948) 3,852 (9,096)
24 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
2004 2003
£000 £000
Increase in cash 292 770
Cash outflow from debt and lease financing 3,560 4,748
Change in net debt resulting from cash flows 3,852 5,518
New finance leases and hire purchase contracts – (1,735)
Movement in net debt in the year 3,852 3,783
Net debt at 1 January (12,948) (16,731)
Net debt at 31 December (9,096) (12,948)
25 CONTINGENT ASSET
The group sold, in 2003, a vacant freehold property in Lewes, previously occupied by W E Baxter, for an initial consideration
of £1.6m in cash. An additional subsequent minimum payment of £0.8m becomes due on receiving suitable planning
consent. Conditional consent was granted in January 2005, subject to the completion of a section 106 agreement. FIVE YEAR REVIEW 43
Fulmar plc Annual Report & Accounts 2004
2004 2003 2002 2001 2000
Profit and loss account £000 £000 £000 £000 £000
Turnover 42,732 39,928 41,584 39,740 40,523
Operating profit before exceptional items 4,004 2,888 3,848 3,739 4,647
Exceptional items (335) 896 (1,066) (2,977) –
Net interest paid (590) (668) (836) (859) (676)
Profit/(loss) before taxation 3,079 3,116 1,946 (97) 3,971
Balance sheet
Fixed assets 32,151 34,647 34,857 32,242 36,920
Net current assets 3,680 3,680 5,032 1,995 1,337
Creditors over one year (7,134) (9,718) (12,376) (7,148) (10,492)
Provisions for liabilities and charges (3,760) (3,843) (3,766) (3,186) (2,740)
Net assets 24,937 24,766 23,747 23,903 25,025 NOTICE OF MEETING 44
Fulmar plc Annual Report & Accounts 2004
Notice is hereby given that the annual general meeting of Fulmar plc will be held at its registered office, The Orion Centre,
108 Beddington Lane, Croydon, Surrey CR0 4YY on Wednesday 11 May 2005 at 12 noon for the following purposes:
ORDINARY BUSINESS
1To receive and adopt the company’s financial statements and reports of the directors and auditors for the year ended 
31 December 2004.
2To receive and adopt the directors’ remuneration report for the year.
3To approve the final dividend of 3.4p per share for the year ended 31 December 2004.
4 (a) To re-elect M E Taylor, who retires by rotation, as a director.
(b) To elect J K McKay, who has been appointed a director since the last annual general meeting, as a director. 
Miss McKay has become a valuable and committed member of the board since joining last year and, following 
a positive performance evaluation by the Chairman, is recommended for election.
5To re-appoint Deloitte & Touche LLP as auditors of the company, to act as such until the conclusion of the next 
annual general meeting, and to authorise the directors to fix their remuneration.
SPECIAL BUSINESS
6To consider and, if thought fit, pass the following resolution as an Ordinary Resolution:
THAT:
(a) the directors be and they are hereby generally and unconditionally authorised in accordance with section 80 of the
Companies Act 1985 to exercise all the powers of the company to allot relevant securities (within the meaning of 
the said section 80) up to an aggregate nominal amount of £449,234 during the period commencing on the date 
of the passing of this resolution and expiring on 10 May 2010, but so that this authority shall allow the company 
to make before the expiry of this authority offers or agreements which would or might require relevant securities to
be allotted after such expiry and notwithstanding such expiry the directors may allot relevant securities in pursuance
of such offers or agreements; and
(b) all authorities previously conferred under the said section 80 be and they are hereby revoked, provided that such
revocation shall not have retrospective effect.
7To consider and, if thought fit, pass the following resolution as a Special Resolution:
THAT, subject to and conditional upon the passing as an Ordinary Resolution of resolution number 6 set out in the 
notice of this meeting: 
(a) the directors be and they are hereby empowered, pursuant to section 95 of the Companies Act 1985 (the ‘Act’), 
to allot equity securities (within the meaning of section 94 of the Act) pursuant to the authority given in accordance NOTICE OF MEETING
CONTINUED
45
Fulmar plc Annual Report & Accounts 2004
with section 80 of the Act by the said resolution number 6 as if section 89(1) of the Act did not apply to any such
allotment, provided that this power shall be limited to the allotment of equity securities:
(i) in connection with or the subject of an offer or invitation, open for acceptance for a period fixed by the directors,
to holders of ordinary shares and such other equity securities of the company as the directors may determine 
on the register on a fixed record date in proportion (as nearly as may be) to their respective holdings of such
securities or in accordance with the rights attached thereto (including equity securities which, in connection with
such offer or invitation, are the subject of such exclusions or other arrangements as the directors may deem
necessary or expedient to deal with fractional entitlements that would otherwise arise or with legal or practical
problems under the laws of, or the requirements of any recognised regulatory body or any stock exchange in, 
any territory or otherwise howsoever);
(ii) pursuant to the terms of any share scheme for employees approved by the members in general meeting; and
(iii) (otherwise than pursuant to sub-paragraphs (i) or (ii) of this resolution) up to an aggregate nominal amount 
of £67,385,
and shall expire on 10 May 2010, except that the company may before such expiry make offers or agreements 
which would or might require equity securities to be allotted after such expiry and notwithstanding such expiry 
the directors may allot equity securities in pursuance of such offers or agreements; and
(b) all authorities previously conferred under section 95 of the Act be and they are hereby revoked, provided that 
such revocation shall not have retrospective effect.
8To consider and, if thought fit, pass the following resolution as a Special Resolution:
THAT the company be and is hereby generally and unconditionally authorised to make market purchases (within the 
meaning of section 163(3) of the Companies Act 1985) of ordinary shares of 5p each in the capital of the company 
(‘Ordinary Shares’) on such terms and in such manner as the directors may from time to time determine provided that:
(a) the maximum number of Ordinary Shares hereby authorised to be acquired is 2,695,405;
(b) the minimum price which may be paid for an Ordinary Share is 5p;
(c) the maximum price which may be paid for an Ordinary Share is an amount equal to 105% of the average of the
middle market quotations for an Ordinary Share as derived from the London Stock Exchange Daily Official List for 
the five business days immediately preceding the day on which that Ordinary Share is contracted to be purchased;
(d) the minimum and maximum prices per Ordinary Share referred to in sub-paragraphs (b) and (c) of this resolution 
are in each case exclusive of any expenses payable by the company; NOTICE OF MEETING
CONTINUED
46
Fulmar plc Annual Report & Accounts 2004
(e) the authority conferred by this resolution shall expire at the conclusion of the annual general meeting of the
company to be held in 2006, or, if earlier, the expiry of 15 months from the date of the passing of such resolution
unless such authority is varied, revoked or renewed prior to such time by the company in general meeting by 
Special Resolution; and
(f) the company may enter into a contract to purchase Ordinary Shares under the authority conferred by this resolution
prior to the expiry of such authority which will or may be completed wholly or partly after the expiry of such
authority and may make a purchase of Ordinary Shares in pursuance of any such contract.
By order of the board Registered office:
D J Harris The Orion Centre
Secretary 108 Beddington Lane
5 April 2005 Croydon CR0 4YY
NOTES
Pursuant to regulation 41(1) of the Uncertificated Securities Regulations 2001 (2001 No. 3755), the company has 
specified that only those members registered on the register of members of the company at 12 noon on 9 May 2005 
shall be entitled to attend and vote or to be represented at the meeting in respect of the shares registered in their name 
at that time. Changes to entries on the register of members after 12 noon on 9 May 2005 shall be disregarded in
determining the rights of any person to attend and vote at the meeting.
A member entitled to attend and vote at the meeting may appoint one or more proxies to attend and (on a poll) to vote
instead of him. A proxy need not be a member of the company. The appointment of a proxy will not preclude a member
from attending and voting in person.
To be valid, an instrument appointing a proxy in respect of the meeting and the power of attorney or other authority 
(if any) under which it is signed, or a copy of such authority certified notarially, must be deposited with the company’s
registrars, Capita IRG plc, The Registry, 34 Beckenham Road, Beckenham BR3 4TU, not less than 48 hours before the 
time appointed for holding the meeting.
The register of directors’ holdings, copies of the directors’ service agreements and the company’s memorandum and 
articles of association are available for inspection at the registered office of the company during normal business hours 
on any weekday and will be available at the place of the meeting from 15 minutes prior to the commencement of the
meeting until the conclusion thereof.
The final dividend in respect of the year ended 31 December 2004 will, if approved, be paid on 18 May 2005 to 
holders of ordinary shares on the register at the close of business on 22 April 2005. FORM OF PROXY 47
Fulmar plc Annual Report & Accounts 2004
I/We of (BLOCK CAPITALS PLEASE)
of
being a member of Fulmar plc, hereby appoint the Chairman of the Meeting or (BLOCK CAPITALS PLEASE)
as my/our proxy to vote for me/us and on my/our behalf at the Annual General Meeting of the company to be held on 
11 May 2005, and at every adjournment thereof. I/We direct my/our proxy to vote on the resolutions set out in the notice
convening the meeting as indicated below.
Dated: 2005 Signature:
Please indicate with an ‘X’ in the appropriate box how you wish your proxy to vote. 
Unless otherwise instructed, the proxy will vote or abstain from voting at his discretion.
RESOLUTIONS FOR AGAINST
1To receive and adopt the financial statements and reports of the directors and auditors for the 
year ended 31 December 2004.
2To receive and adopt the directors’ remuneration report for the year.
3To approve the final dividend of 3.4p per share for the year ended 31 December 2004.
4 (a)  To re-elect M E Taylor as a director.
(b)  To elect J K McKay as a director.
5To re-appoint Deloitte & Touche LLP as auditors until the next annual general meeting and to 
authorise the directors to fix their remuneration.
6 The resolution (item 6 in the notice) relating to the allotment of securities.
7 The resolution (item 7 in the notice) relating to the disapplication of pre-emption rights.
8 The resolution (item 8 in the notice) relating to the purchase by the company of its own shares.
NOTES
1You may, if you wish, delete the words ‘the Chairman of the Meeting or’ and substitute the name of your proxy of choice. Please initial such an alteration. 
A proxy need not be a member of the company.
2To be effective, this form of proxy and the power of attorney or other authority (if any) under which it is signed, or a copy of such authority certified notarially, 
must be deposited with the company’s registrars, Capita IRG plc, The Registry, 34 Beckenham Road, Beckenham BR3 4TU not less than 48 hours before the time 
appointed for holding the meeting.
3 In the case of corporations this form of proxy must be completed under its common seal or under the hand of some officer or attorney or other person duly authorised.
4 In the case of joint holders, the signature of any one joint holder is sufficient. The vote of the senior who tenders a vote, whether in person or by proxy, shall be accepted 
to the exclusion of the votes of the other joint holders, and for this purpose seniority shall be determined by the order in which the names stand in the register of members
in respect of the share.
5 Completion and return of this form of proxy will not preclude a member from attending and voting in person.
6 On any motion to amend any resolution, to propose a new resolution or to adjourn the meeting, or on any other motion or resolution put to the meeting, the proxy 
will vote or abstain from voting at his/her discretion.
✄ BUSINESS REPLY SERVICE
Licence No. MB122
Capita Registrars (Proxies)
PO Box 25
Beckenham
Kent BR3 4BR
THIRD FOLD AND TUCK IN EDGE
SECOND FOLD
FIRST FOLD FIRST FOLD  FULMAR plc
ANNUAL REPORT & ACCOUNTS 2004
Fulmar plc
The Orion Centre
108 Beddington Lane
Croydon
Surrey CR0 4YY
www.fulmar .com
FULMAR plc                   ANNUAL REPORT & ACCOUNTS 2004