SCi Entertainment Group Plc
Annual Report & Accounts 2008 SCi Entertainment Group Plc Annual Report and Accounts 2008
Contents
Overview
Who we are 1
Strategy 2
Highlights 4
Business review
Chairman’s statement 6
Chief Executive’s statement 8
Financial review 16
Governance
Directors, officers and advisers 20
Directors’ report 22
Corporate governance 25
Corporate responsibility statement 28
Directors’ remuneration report 29
Accounts
Report of the independent auditors 35
Consolidated income statement 36
Consolidated statement of changes
in equity 37
Consolidated balance sheet 38
Consolidated cash flow statement 39
Notes to the consolidated accounts 40
Company balance sheet under UK GAAP 67
Notes to the UK GAAP financial statements 68
Shareholder information 72
Five year record ibc
SCi Entertainment Group Plc
SCi Entertainment Group is a public limited company registered in England (number
3121578). Its ordinary shares are listed on the London Stock Exchange (ticker SEG.L).
SCi Entertainment Group Plc is the parent Company of the SCi and Eidos group of
companies. Unless otherwise stated, the text in this Annual Report does not distinguish
between the activities and operations of the parent Company and those of its subsidiary
undertakings. This is the Company’s Annual Report for the 12 month period ended
30 June 2008 and has been prepared in accordance with UK regulations. It is also
available on the Company’s website at www.sci.co.uk. SCi and Eidos and the SCi and
Eidos logos are registered trademarks of the SCi Entertainment Group of companies.
All other trademarks are the property of their respective owners. All rights reserved. 
Forward-looking Statements
Certain statements made in this Annual Report are “forward looking” statements. Such
statements are based on current expectations and are subject to a number of risks
and uncertainties that could cause actual results to differ materially from any expected
future events or results referred to in the forward looking statements concerned. The
Company does not undertake any obligation to update or revise any forward looking
statements, whether as a result of new information, future developments or otherwise.
No information contained in this Annual Report constitutes or shall be deemed to
constitute an invitation or otherwise to deal in ordinary shares of SCi Entertainment
Group Plc. The price of securities and income derived from the securities can go down
as well as up.
“We are 100% committed to driving quality
through every area of our business.”
Phil Rogers, Chief Executive SCi Entertainment Group Plc Annual Report and Accounts 2008 1
Overview
Who we are
The creator of some of the world’s leading videogame
properties published under the Eidos brand name, with
a valuable portfolio of intellectual property including:
Tomb Raider, Hitman, Deus Ex, Championship Manager,
Kane & Lynch and Just Cause.
The Group operates a studio-led business with a
clear focus on cornerstone franchises. A global
business with a head office in Wimbledon, London
and several wholly-owned world class development
studios including Crystal Dynamics, Io Interactive and
Eidos Montreal as well as sales and distribution
offices in Europe and the US.
Lara Croft’s latest adventure Tomb
Raider: Underworld sees her
travel to Mexico, Thailand and the
Arctic.  2 SCi Entertainment Group Plc Annual Report and Accounts 2008
Overview
Strategy
Working with the best
A rich portfolio of established franchises and the creative
talent in place to deliver new innovative, wholly-owned
videogame franchises.
Working together
A new studio-led business model designed to build
focused cross-discipline teams around cornerstone
franchises, working closely with channel and distribution
expertise to drive product positioning and sales.
Working in partnership
Exploring partnership opportunities across the business
to achieve greater flexibility and scale.
Working on quality
We are constantly looking to improve every area of our
business, the way we work, the games we work on and
the results we deliver.
Our objectives are to maximise the success of our most
valuable franchises, strategically grow our portfolio and
work with key partners to extend and build flexibility and
scale in our business. We believe this strategy will
deliver the best long-term returns for shareholders. 
Concept art from Deus Ex 3 set
the internet alight when it was
released earlier this year. Details
on the game are still a closely
guarded secret as the online
campaign begins to gather
momentum.  SCi Entertainment Group Plc Annual Report and Accounts 2008 3
“Creativity in gaming is the ability to
bring ideas to life through innovation,
accessibility and great design. Ideas
create value and computer games are
about a lot of cool ideas.” 
Janos Flösser, Chief Creative Officer
Batman: Arkham Asylum is a
new Eidos game, developed by
Rocksteady Studios and due for
release in 2009. The game was
recently unveiled on the front
cover of North America’s largest
video games magazine, Game
Informer. 4 SCi Entertainment Group Plc Annual Report and Accounts 2008
Overview
Highlights
Company highlights
The 2008 financial results reflect a
year of decisive action and business
transformation with a revitalised focus
on cornerstone franchises to capitalise
on the substantial market opportunity.
> Leaner operating structure in place
with a 25% lower headcount level to
deliver the targeted reduction in
operating costs of £14 million in the
new financial year.
> Shifting the business structure to a
studio-led model to form focused
teams around our key franchises to
produce high quality games and
high-impact, focused and
coordinated marketing campaigns.
> Executive Board restructured with
the appointment of Phil Rogers as
Chief Executive Officer and, recently,
Robert Brent as Chief Financial
Officer.
> Strengthened Board with the
appointment of two new non-
executive directors, Kevin Tsujihara
and Aaron Brown, from Warner Bros.
and Thorson Investments
respectively.
> £60 million (before expenses) raised
by way of a successful Placing and
Open Offer to provide working
capital and £25 million new debt
facility secured.
Key financials
> Revenue declined to £118.9 million
(2007: £128.8 million) reflecting major
transition and change during the year.
> Focus on publishing own products
resulted in gross profit increasing to
£56.1 million against £54.3 million
last year and an improvement in
gross profit margin from 42.2% to
47.2%.
> Adjusted EBITDA loss of £99.1 million*
(2007: loss £13.3 million) within
market expectations, as a result of
necessary transformation of the
business and a loss before tax of
£136.0 million (2007: loss
£30.0 million).
* see note 9 SCi Entertainment Group Plc Annual Report and Accounts 2008 5
Overview
Highlights continued
Product performance
The product focus for the financial year
was on three major new product
releases: Kane & Lynch: Dead Men,
Tomb Raider: Anniversary and Age of
Conan.
In November 2007, Eidos released the
brand new home grown franchise,
Kane & Lynch: Dead Men from Io
Interactive which sold over 1.4 million
units in the period to 30 June 2008.
Celebrating ten years of Lara Croft,
Tomb Raider: Anniversary released last
year on PlayStation
®
2 and PC, then on
Xbox 360, PSP and Nintendo Wii
between October and December 2007.
Tomb Raider: Anniversary was Lara
Croft’s first outing on the Nintendo Wii
console, offering gamers a totally new
Tomb Raider ‘hands-on’ gameplay
experience. The Wii version of the
game benefited from the Christmas
2007 launch window; across all
platforms the game has sold over
1 million units in the period to
30 June 2008.
Age of Conan: Hyborian Adventures
launched in May 2008. Co-published
with Funcom, this PC-only title sold
over 1 million units and is still
gathering players online; the Group
looks forward to continuing this
relationship and channel support of
this Massively Multiplayer Online
(MMO) PC title.
The Group also released a number of
games aimed at the growing casual
games market. Dr Reiner Knizia’s
Brainbenders, Soul Bubbles, Nervous
Brickdown, Wacky Races: Crash &
Dash and Looney Tunes: Cartoon
Concerto.
The strength of the Group’s IP was
demonstrated by the release of the
first Hitman movie from 20th Century
Fox in November 2007, which grossed
$96.5 million at the worldwide box
office according to Screen
International. The film, starring Timothy
Olyphant, significantly increased
mainstream awareness of our Hitman
brand.
Age of Conan was available in
a Collector’s Edition pack which
included an impressive art book,
original soundtrack, a leather
map and priceless in-game
collectables.  6 SCi Entertainment Group Plc Annual Report and Accounts 2008
Business Review
Chairman’s statement
T
he past year has been dominated by acquisition talks, restructuring and transition for the
Group. Our business has undergone fundamental change to ensure it is best placed to take
advantage of the growing interactive videogames market and deliver long-term returns for
shareholders.
At the start of the 2008 calendar year, the Group underwent a number of significant changes. In
early January after the termination of acquisition talks we reset our financial outlook for 2008 and
later that month Jane Cavanagh, Bill Ennis and Rob Murphy all stepped down from their respective
positions as directors of the Company. Phil Rogers became Chief Executive Officer and led a full
business review with the support of the Board which resulted in the Group being significantly
restructured and refocused. 
During the second half of the financial year, we raised £60 million (before expenses) by way of a
successful Placing and Open Offer of new shares to provide working capital and arranged a new
debt facility of £25 million. 
Results for the year
Our revenue declined to £118.9 million (2007: £128.8 million) in the financial year reflecting its
transitional nature (we have also excluded Proein SL from our results for both years as its sale is in
the final stages of completion and it has therefore been treated as a discontinued operation).
Nonetheless, both gross profit and gross profit margin improved as a result of the greater weighting
to published titles, the former increasing to £56.1 million (2007: £54.3 million) and latter improving
five percentage points to 47.2%.
Adjusted EBITDA loss was £99.1 million (2007: loss £13.3 million) highlighting the scale of
transformation that the Group has undergone. The restructuring resulted in an additional charge in
the year of £65.9 million against capitalised development costs. As of 30 June 2008 we have
£49.7 million carried on our balance sheet reflecting the investments we have made in major titles in
development including Tomb Raider: Underworld, Hitman 5, Batman: Arkham Asylum, Shellshock 2,
Just Cause 2 and new intellectual properties. 
Our decision to restructure various components of the business and reduce operating costs has
also resulted in a £16.3 million impairment to the value of intangible assets and exceptional
restructuring costs of £6.2 million. As a result our business structure has become more focused and
efficient with a leaner operating structure now in place to deliver the targeted reduction in operating
costs of £14 million in the new financial year. 
The past financial year has been difficult but the action we have taken was necessary and has
produced a business that is now well placed to capitalise on the opportunities that the videogames
industry presents. 
Strengthening of the Board
In addition to Phil Rogers, the Board has been strengthened with the appointment of two new non-
executive directors, Kevin Tsujihara and Aaron Brown, representing investors Warner Bros. and
Thorson Investments respectively. Since the end of the financial year we have also appointed a new
Chief Financial Officer, Robert Brent.
Soul Bubbles, an enchanting
action puzzle game for the
Nintendo DS, in which the player
controls a young shaman
apprentice entrusted with saving
lost spirits and steering them to
safety in the comfort of a
protective bubble.
Tim Ryan
Focus and clear strategy will stand the Group
on solid ground to achieve long-term returns
for shareholders. SCi Entertainment Group Plc Annual Report and Accounts 2008 7
Business Review
Chairman’s statement continued
Business structure
The Group’s business structure has been changed to a studio-led model focused on maximising
returns from our cornerstone franchises such as Tomb Raider, Hitman and Deus Ex. We have
adopted a flexible and efficient approach to distribution and have entered into a strategic agreement
with Warner Bros. Home Entertainment for the sales, marketing and distribution of our products in the
important North American market, strengthening our relationship with Warner Bros., one of the world’s
leading media companies.  
Working in partnership is a key theme for the future of the Group. By identifying and working with
the right partners we are looking to achieve greater scale and build flexibility into the business.
Summary
Our industry is growing through a broadening demographic appeal of games, increasing spend
among gamers, longer product cycles and new online opportunities. 
We have provided the right resource and environment for our studios to do what they do best:
create great intellectual property and commercially successful games, while the appropriate balance
of direct and third-party distribution channels will build flexibility and scale into our business.
Our cornerstone franchises have the potential to deliver substantial returns on investment and
remain key to the business. We must continue to be creative and innovative to ensure these and our
future games are relevant and appealing to our consumer.
The Board believes the Group is now well positioned to deliver returns for our shareholders by
leveraging our new business approach, revitalised focus and cornerstone franchises to capitalise on
the substantial market opportunity.
Tim Ryan
Chairman
26 September 2008
Developed by Eidos Hungary
Battlestations: Pacific, a third-
person action strategy game,
allows players to take direct
control over US and Japanese
fleets and squadrons in huge
epic battles over the Pacific, from
the Battle of Midway to Okinawa. 8 SCi Entertainment Group Plc Annual Report and Accounts 2008
Business Review
Chief Executive’s statement
O
ur 2008 financial results reflect a year in which we took decisive action and transformed our
business.
Business Review
On 29 February 2008 we announced a restructuring plan and concluded that our focus should be
on cornerstone franchises in order to optimise returns on these titles. The key aspects of the new
business plan are as follows:
Fundamental change in business structure
The Group’s business structure has changed from a centrally controlled development and publishing
model to one that is studio-led, focused on building appropriate studio infrastructure around the
Group’s cornerstone franchises, such as Tomb Raider, Hitman, Championship Manager and Deus Ex.
The Group’s studios are now responsible for the development of games from initial design through
production and branding to product marketing, working in conjunction with sales, channel marketing
and distribution expertise. 
We have a dedicated team responsible for our other titles and third-party products, including
casual games. Titles currently in production include: Just Cause 2, Battlestations: Pacific, Pony
Friends 2 and Batman: Arkham Asylum.
Product improvement initiatives
The decision to shift the Group’s business structure to a studio-led model has enabled it to form
focused teams around its key products with the aim of not only producing high quality games, but
high-impact, focused and coordinated marketing campaigns. The marketing of our core products is
beginning further out from the product launch date in order to generate the right level of consumer
awareness, build anticipation, establish and work with relevant online communities and deliver a
strategic marketing campaign which can gather momentum towards the product launch. 
Over the past six months the Group has cancelled a number of projects that the Board
considered either loss-making, unlikely to generate acceptable returns on investment or not of
appropriate quality. We have also introduced a new, tougher ‘green-light’ process to monitor product
quality of all future projects.
Cost reduction plan
A leaner operating structure is now in place with a 25% lower headcount level to deliver the targeted
reduction in operating costs of £14 million in the new financial year.
We raised £60 million (before expenses) by way of a successful Placing and Open Offer of new
shares to provide working capital and we have made fundamental and beneficial changes to our
business in order to take advantage of the continued growth in the games industry.
Phil Rogers
Our commitment to improving quality across the
business and securing strategic partnerships will
be the key to unlock our full potential. SCi Entertainment Group Plc Annual Report and Accounts 2008 9
Working with the best: A rich portfolio of
established franchises and the creative
talent in place to deliver new innovative,
wholly-owned videogame franchises.
Battlestations: Pacific offers
players over 28 story missions,
doubling the size of Battlestations:
Midway, and 21 new units
including kamikaze and other
WWII planes and units. A brand
new cockpit view has been
introduced into the game plus the
tactical landing of troops in battle. 10 SCi Entertainment Group Plc Annual Report and Accounts 2008
Working together: A new studio-led
business model designed to build
focused cross-discipline teams around
cornerstone franchises, working closely
with channel and distribution expertise
to drive product positioning and sales.
The strength of the Group’s IP
was demonstrated by the release
of the first Hitman movie from
20th Century Fox in November
2007, which grossed $96.5 million
at the worldwide box office
according to Screen International. SCi Entertainment Group Plc Annual Report and Accounts 2008 11
Business Review
Chief Executive’s statement continued
A ‘New’ Company
We are more than six months into the new structure and revitalised business. Progress is in-line with
expectations and we are benefiting from transitioning key publishing roles into our major studios, with
a highly coordinated and executed development, marketing and sales campaign for Tomb Raider:
Underworld well under way. 
We have identified the areas we need to focus on in order to achieve both our short and long-
term goals. Our North American partnership with Warner Bros. is key to maximising our presence in
this crucial market. This agreement became effective on 23 May 2008 and we are working with
Warner Bros. in a number of ways, including the delivery of high-impact channel marketing and PR
campaigns to benefit our forthcoming product releases in North America including Tomb Raider:
Underworld, and Warner Bros.’ own intellectual property, Batman, in our recently unveiled game
Batman: Arkham Asylum. We have also entered into a strategic mobile relationship with Electronic
Arts for the exclusive multi-regional distribution and licensing rights to certain Eidos titles across
mobile devices.
In Europe, our sales and distribution business continues to deliver but with greater focus and
momentum. We have agreed the sale of our Spanish distribution business, Proein SL, to Koch Media
and will now focus on maximising returns in the UK, France and Germany through our offices in
those territories, whilst working with distribution partners in other European and export territories. 
Results overview
Our revenue for the year declined to £118.9 million (2007: £128.8 million) reflecting the transitional
nature of our financial year. These figures exclude the revenues of £14.8 million (2007: £15.2 million)
from Proein SL since it has been treated as a discontinued operation. 
Published products contributed 60.0% (2007: 52.3%) of our total revenue with 10 titles released in
the year and 7.1 million units sold (2007: 7.6 million units) with Kane & Lynch (1.4 million units), Tomb
Raider: Anniversary (1.0 million units) and Conflict Denied Ops (0.5 million units) our largest unit
selling titles. 
Our distribution revenue declined to £42.2 million (35.5% of revenue) from £53.7 million (41.7% of
revenue) in 2007 as a result of the reduction in the number of global and local distribution titles
released. The majority of our distribution revenue was derived from sales of Age of Conan, which
sold in excess of one million units since release in the final quarter of the year to 30 June 2008. The
remainder of our revenue in both years was licensing and other income.
Both gross profit and gross margin improved as a result of the change in mix from lower margin
distribution products to higher margin published products, which also showed improved margin due
to higher achieved premium price points and our biggest release occurring in the holiday season.
Gross profit increased to £56.1 million (2007: £54.3 million) and our margin improved five
percentage points to 47.2%.
Development costs including royalty payments charged to the income statement for the year totalled
£104.3 million (2007: £32.8 million) of which £38.4 million relates to product releases. The remaining
£65.9 million are adjustments to the net realisable value of ongoing and discontinued projects. 
The Group spent £1 7.6 million (2007: £12.8 million) on product advertising in the financial year,
representing 14.8% of revenue (2007: 10.0%). The increase is primarily due to additional investment
to launch a new intellectual property in the holiday season.
We have identified the areas we need to focus on in
order to achieve both our short and long-term goals.
Our North American partnership with Warner Bros. is
key to maximising our presence in this crucial market.
In Monster Lab you become a
scientist’s apprentice and perform
a vast array of experiments to
create your very own monster
from over 100 million possible
monster part variations.  12 SCi Entertainment Group Plc Annual Report and Accounts 2008
Business Review
Chief Executive’s statement continued
Our administrative costs excluding exceptional charges were £62.9 million (2007: £39.5 million) of
which £31.7 million (2007: £15.3 million) is amortisation, depreciation and impairment charges and
£0.1 million (2007: £2.2 million) share-based payment compensation.  
The amortisation charge of acquired brands, technology and software was £11.7 million (2007:
£11.4 million) with an additional impairment charge of £16.3 million (2007: £nil), which reflects the
result of the strategic review and the decisions to restructure various components of the business, in
particular the acquisitions made last year.
Our loss before tax was £136.0 million (2007: loss £30.0 million) giving a basic loss per share of
136.3p (2007: loss 35.3p).
Market overview
The market is substantial and continues to grow, with new opportunities for publishers to develop
revenue streams and grow margins. 
The current videogame cycle is expected to be the biggest and longest in the industry’s history.
Screen Digest reports software revenues will be 23% higher than the previous cycle which ran from
2000 and was dominated by Sony’s PlayStation
®
2. In 2007 the value of the global software market
reached a new record of £14.7 billion of sales and is forecast to grow by 12.5% in 2008. Western
Europe and North America remain our key markets, with a combined software value of over
£13.2 billion.
As a business, we are well placed to maximise the opportunities presented by the continued
global growth in the market, which we believe is primarily driven by higher retail prices and an
increased number of platforms, along with higher tie ratios (the number of games sold per console
owner). In addition there is a broadening demographic appeal for games today and new revenue
opportunities presented by online gaming, such as premium downloadable content, in-game
advertising and micro transactions. 
In the hardware market the Nintendo Wii is the current leader in terms of number of consoles sold
to consumers, however no hardware manufacturer can yet assume ascendancy. As a publisher this
presents a number of exciting opportunities. Nintendo has undoubtedly broadened the demographic
appeal of videogames, while the Sony PLAYSTATION
®
3 and Microsoft Xbox 360 continue to appeal
to the core gamer. 
We believe the online gaming market will benefit from increased broadband speed and
penetration, presenting new revenue opportunities for our core games. We also believe that online
gameplay features will help maintain premium price points for our products by extending their appeal
and we intend to grow our presence in this online environment to exploit the strength of our games. 
The market is substantial and continues to grow, with
new opportunities for publishers to develop revenue
streams and grow margins.
The familiar logo, imprinted on the
memories of millions of football
fans has been given a more
emotive, contemporary and
original look to match the series’
gameplay – the new logo places
the emphasis on you, the
manager. SCi Entertainment Group Plc Annual Report and Accounts 2008 13
Working in partnership: Exploring
partnership opportunities across the
business to achieve greater flexibility
and scale.
Kane & Lynch sold over 1.4 million
units on release in November
2007. The film rights have been
optioned by Academy Award-
winning Lionsgate Films.  14 SCi Entertainment Group Plc Annual Report and Accounts 2008
Working on quality: We are constantly
looking to improve every area of our
business, the way we work, the games
we work on and the results we deliver.
Age of Conan is a Massively
Multiplayer Online game,
developed and co-published by
Funcom for PC users. The game
launched in May 2008 to a great
deal of awareness and
anticipation, going straight to No.1
in the PC charts around the world. SCi Entertainment Group Plc Annual Report and Accounts 2008 15
Business Review
Chief Executive’s statement continued
Priorities and outlook
We have emerged from the past months of change as a stronger business and over the next year
we will begin to see the results of our restructured and revitalised operation. The Group is focused on
delivering higher quality games with our priorities set clearly on maximising the returns from our
cornerstone franchises. 
We remain totally focused on, and we are excited about, the worldwide release of Tomb Raider:
Underworld on 18 November in North America and 21 November in Europe. Tomb Raider:
Underworld has benefited from additional development time and a carefully choreographed build up
to launch with increased tactical online presence, delivery of high quality marketing assets and the
unveiling of a new ‘live’ Lara Croft – all helping to build ‘buzz’ prior to launch. 
Our first Tomb Raider: Underworld trailer was launched exclusively on MTV in July in the US and
Europe. Closer to home, the London unveiling of our new ‘live’ Lara Croft secured national news
coverage with the BBC and ITV in August and has continued to drive excitement and buzz for this
key title across all key territories over the past month.
We will continue to drive innovation and encourage creativity throughout the business as we look
to strategically grow our portfolio of videogame franchises. Products for our new financial year
include: Just Cause 2, Battlestations: Pacific, Monster Lab, Championship Manager 09, Batman:
Arkham Asylum and Tomb Raider: Underworld.
A consistent identity
We are focusing our efforts on our cornerstone franchises, which are predominantly associated with
the Eidos brand. The Eidos name is widely recognised in the games marketplace and is our trading
name. The Board feels that it would be beneficial to align the name of the listed Company to the
strong product brand that Eidos represents in order to benefit from a single identity and clearer
outward and internal communication. Therefore it is the Board’s recommendation to change the
name of the Company to Eidos plc.
A resolution to approve the change of name will be proposed at the Annual General Meeting,
which will be held on 2 December 2008. 
Our staff remain absolutely fundamental to the success of the business. This has been a most
challenging year and I would like to thank our employees for their contribution and continued
commitment over the past 12 months.
Phil Rogers
Chief Executive Officer
26 September 2008
We will continue to drive innovation and encourage
creativity throughout the business as we look to
strategically grow our portfolio of videogame
franchises. 16 SCi Entertainment Group Plc Annual Report and Accounts 2008
Business Review
Financial review
A year of transition
T
he financial year to 30 June 2008 was one of transition for
the Group with the newly appointed management team
initiating a strategic review covering all aspects of the
Group’s business and resulting in a significant restructure of
operations, cancellation of projects and closure or disposal of
business units. In conjunction with this, additional capital was
raised through a Placing and Open Offer to enable the Group
to exploit its strong intellectual property in a growing market.
Revenue
Total revenues were £118.9 million (2007: £128.8 million). Group
revenues arose from the following sources:
12 months to 12 months to
30 June 2008 30 June 2007
£m % £m %
Published products 71.4 60% 67.3 52%
Distribution 42.2 36% 53.7 42%
Licensing and New Media 5.3 4% 7.8 6%
118.9 100% 128.8 100%
Total revenues include sales of games to retailers and distributors
at invoiced amounts. Provisions for future returns or price
adjustments are deducted from total revenues.
Revenue from published products
In 2008 we released 10 new published titles which together with
back catalogue sales generated revenues of £71.4 million (2007:
£67.3 million), representing 60.1% (2007: 52.3%) of total revenue.
We sold 7.1 million units (2007: 7.6 million units) at an average
selling price of £10.02 per unit (2007: £8.89). 
The year-on-year improvement in average selling price was
due to the benefit of releasing a hit title in the holiday season
and premium price points of PLAYSTATION
®
3 and Xbox 360
games. The largest unit selling titles in the year to 30 June 2008
were Kane & Lynch (1.4 million units), Tomb Raider: Anniversary
(1.0 million units) and Conflict Denied Ops (0.5 million units).
Revenue from distribution products
Distribution revenues represent amounts invoiced to retailers or
other distributors for products distributed under contract for third
parties.
Distribution revenues decreased from £53.7 million (41.7% of
revenue) to £42.2 million (35.5% of revenue) in the period as a
result of the reduction in the number of global distribution titles
released. The majority of the revenue in the year to 30 June 2008
was derived from sales of Age of Conan, which sold in excess of
one million units in the final quarter. The remainder of the
distribution revenues were generated by some new smaller global
deals, continuing sales of catalogue from prior year releases and
local distribution products signed within the territories.
Revenues from Licensing and New Media 
Licensing revenue derives from the exploitation of the Group’s
intellectual property in areas other than the sale of games. This
includes revenue from film rights, merchandising and the sale of
advertising rights in games. New Media revenue arises from the
sale of products developed for mobile phones and other online
platforms including digital downloads.
Revenue from Licensing and New Media declined to
£5.3 million (2007: £7.8 million). In the year our New Media
business was restructured and going forward the Group’s
properties will be licensed to third parties to develop games for
mobile phones. This will result in lower revenues which will be
offset by savings related to the development of products.
New Product Releases Xbox
PSP PS2 360 PC Wii DS PS3
Kane & Lynch >> >
Conflict Denied Ops >> >
Tomb Raider: Anniversary > >>
Championship Manager
2008 >
Death Junior >
Prism >
Top Trumps: Dr Who > >>
Looney Tunes >
Soul Bubbles >
Wacky Races >> Business Review
Financial review continued
Gross profit
Gross profit represents turnover less the direct costs of selling a
game. Direct selling costs principally comprise the cost of
manufacturing and delivering to the retailer physical copies of the
finished product including the disc, box and packaging. They also
include royalties to third parties in respect of products licensed or
distributed by the Group. 
Gross profit increased to £56.1 million (2007: £54.3 million)
with gross margin improving from 42.2% to 47.2%, reflecting the
change in mix from lower margin distribution products to higher
margin published products and increased average selling prices.
Development costs
In common with the majority of global video game publishers,
and consistent with the requirements of IFRS, development costs
are capitalised during the course of production from the point at
which a product is considered to be technically and commercially
feasible (see note 1 page 40). The capitalised amounts are
shown as capitalised development costs (non current, intangible
assets) in the balance sheet. Capitalised development costs are
charged to the income statement when a game is released and
are amortised over the period in which the Group expects to earn
the majority of revenues from the product. 
Development costs including royalty payments charged to the
income statement for the year were £104.3 million (2007: £32.8
million) of which £38.4 million related to products released in the
year and £65.9 million related to cancelled products and
adjustments to net realisable value.
During the year the Group invested £69.8 million in
development (2007: £68.5 million) of which £35.7 million was
incurred in the first half and £34.1 million in the second. Going
forward we shall focus on the development of our core
intellectual property and this focus will reduce our total cash
investment.
At 30 June 2008 the Group had £49.7 million of capitalised
development on the balance sheet (2007: £81.8 million). The
major titles in development include Tomb Raider 8, Hitman 5,
Batman, Highlander, Shellshock and Just Cause 2.
Advertising costs
The Group spent £1 7.6 million (2007: £12.8 million) on product
advertising in the financial year, representing 14.8% of revenues
(2007: 10.0%). The increase in marketing spend primarily relates
to additional investment to launch a new intellectual property in
the holiday season.
Advertising costs include all external costs incurred to promote
the sale of the Group’s products. The largest proportion of
advertising spend is directed at TV, radio, outdoor, print and the
internet but also includes promotional and PR campaigns. All
advertising costs are expensed as incurred.
Administrative costs
Administrative costs comprise all the costs of running the Group’s
corporate, publishing and distribution functions. These include
staff and associated costs employed in sales, distribution,
marketing, PR, IT, customer service, new media, finance, HR, legal
and licensing. 
Administrative costs were £62.9 million (2007: £39.5 million)
of which £31.7 million (2007: £15.3 million) relates to depreciation
and amortisation charges and £0.1 million (2007: £2.2 million) to
share-based compensation. The underlying level of cash based
overheads was therefore £31.1 million (2007: £22.0 million). 
At 30 June 2008 the Group had 163 staff in sales, marketing
and administration, compared to 228 at 30 June 2007. These
figures exclude employees of operations that have either been
classified as discontinued or where a provision has been made
for their redundancy.
Adjusted EBITDA
Adjusted earnings before interest, tax, depreciation and
amortisation (“Adjusted EBITDA”) is a metric commonly used by
our global peer group to measure operating performance and
profitability. It is adjusted to include the results of discontinued
operations and exclude exceptional charges and share-based
compensation, a non-cash charge arising under IFRS. Our
adjusted EBITDA loss was £99.1 million (2007: loss £13.3
million). 
Depreciation 
The charge for depreciation of plant, property and equipment
and intangible software amortisation was £3.6 million (2007:
£1.6 million). This is stated after the deduction of £nil (2007:
£0.9 million) relating to depreciation incurred by internal
development studios and carried forward as part of capitalised
development costs.
SCi Entertainment Group Plc Annual Report and Accounts 2008 17 18 SCi Entertainment Group Plc Annual Report and Accounts 2008
Business Review
Financial review continued
Intangible assets and amortisation
Intangible assets acquired by the Group are amortised over the
expected period of use and are subject to annual impairment
assessment. The amortisation charge of acquired brands,
technology and software was £11.7 million (2007: £11.4 million)
with an additional impairment charge of £16.3 million (2007: £nil).  
This impairment charge reflects an assessment of all
intangible assets as a result of the strategic review and decisions
to restructure various components of the business. £9.3 million of
the charge was attributable to products being discontinued or
adjusted to reflect expected future benefits and £7.0 million was
attributable to decisions taken to restructure certain areas of the
business.
The net value of intangible assets in the Group’s balance
sheet at the reporting date is £75.4 million, which is based on
brands which have proven commercial success. These are Tomb
Raider, Hitman, Championship Manager, Kane & Lynch, Just
Cause and Shellshock.
The value of the intangible assets is amortised over 15 years
for brands and 8 years for technology, representing the estimated
useful economic life of the assets.
Goodwill
Goodwill relates to the acquisition of Eidos plc. The net book
value of goodwill at 30 June 2008 was £2.0 million (2007:
£2.7 million). During the year the Group fully wrote off the
goodwill relating to the acquisition of Morpheme Studios and
reclassified the goodwill relating to Proein SL as an asset held for
sale.
Restructuring costs 
The Group initiated a strategic review in January 2008 and in
February 2008 announced plans to restructure at an estimated
cost of £7 million. At the year end the Group had incurred costs
of £6.2 million with the majority of the restructuring completed or
accrued. The key components of the restructuring costs are
redundancy costs associated with reducing headcount, relocation
of the quality assurance function to Montreal and professional,
consulting and legal fees. 
Exceptional costs 
During the year to 30 June 2008, the analysis on the income
statement of exceptional items has changed. The directors
believe this to be a more appropriate presentation and
accordingly the comparative figures have also been changed.
This had no affect on the loss or assets reported. The exceptional
costs in the prior period of £0.6 million were incurred on the
settlement of a trade dispute. 
Loss before tax
Loss before tax was £136.0 million (2007: loss £30.0 million). The
comparative result has been restated to exclude discontinued
operations.
Taxation 
There is a net tax charge of £2.0 million for the year (2007: £1.7
million credit), which consists largely of an adjustment in respect
of overseas tax of £2.4 million and a deferred tax credit of £0.9
million. At 30 June 2008 the Group had substantial tax losses in
the UK to carry forward to set against future taxable profits,
subject to agreement with the tax authorities.
Loss per share
Basic loss per share was 136.3p (2007: loss 35.3p). 
Working capital
At 30 June 2008 the Group had £25.9 million of cash and no
borrowings. This excludes £2.9 million of cash anticipated from
the disposal of Proein.
During the year the Group raised £56.3 million (net of costs)
of cash through a Placing and Open Offer.
The Group has new committed banking facilities of up to
£25 million with Lloyds TSB. This provides flexibility to the Group,
including the opportunity to respond quickly to product and
licence acquisition opportunities, and to cover short-term working
capital requirements.
Pensions
The Group offers all employees the opportunity to participate in
an appropriate Company pension scheme. As these are defined
contribution schemes there are no circumstances in which the
Group will face a future pension liability.
Financial instruments
During the period, the Group’s financial instruments, other than
derivatives, comprised cash, overdrafts and various items such as
trade debtors and creditors that arise directly from operations. The
main purpose of these financial instruments is to finance the
Group’s operations. The Group also enters into derivative
transactions in the form of foreign currency contracts when
required in order to manage the currency risk arising from the
Group’s operations. The Group’s policy is, and was throughout
the period under review, not to trade in financial instruments. The
main risks arising from the Group’s financial instruments are
liquidity risk, credit risk and foreign currency risk. The Board
reviews and agrees policies for managing each of these risks on
a regular basis.
Liquidity risk
The Group has a committed facility of £25 million with Lloyds TSB
which will cover short-term working capital needs in periods
where there are a number of product launches. Business Review
Financial review continued
Credit risk
The Group’s revenues are principally derived from sales to
retailers and distributors. The amounts due from any particular
retailer or distributor may be material, particularly following major
product releases. The Group’s policy is to only extend credit to
companies with a strong credit rating and to obtain credit
insurance to protect against the risk of default. 
Foreign currency risk
The Group receives significant portions of its revenues in either
euros or US dollars. The Group also has significant costs in each
of these currencies relating to overseas offices, the manufacture
of finished products and the development of new games. The
Group seeks to balance the flows of currency across countries to
minimise any imbalance of foreign currency receipts and
payments.
Key performance indicators
The directors monitor a number of financial metrics and key
performance indicators (KPIs) for the Group, including:
> Revenue and gross profit
> Sales units
> Average selling prices
> Development costs and pipeline
> Adjusted EBITDA
In addition, the directors receive information on non financial
metrics such as reports from the Group’s quality assurance
function, independent consultants and the results of focus
groups.
Risks and uncertainties
Risks to the business include the risk of development delays and
cost overruns, competitive products, our own product
performance, the need to maintain sufficient working capital, the
loss of key personnel, delays in the introduction of new hardware
platforms, associated lead times to develop games for new
hardware and increased regulation of products. 
The directors regularly monitor all these risks and uncertainties
and appropriate actions are taken to mitigate the risks or their
potential outcomes.
Employee and environmental matters
The Group’s employment policies and environmental policies are
set out in the corporate responsibility statement on page 28.
Robert Brent
Chief Financial Officer
26 September 2008
SCi Entertainment Group Plc Annual Report and Accounts 2008 19 20 SCi Entertainment Group Plc Annual Report and Accounts 2008
Governance
Directors, officers and advisers
Tim Ryan (44)
Non-executive Chairman
Tim Ryan joined the Board on 19 October
2001 and was appointed Chairman on
30 June 2006. Mr. Ryan is also chairman
of Bell Pottinger International, one of the
United Kingdom’s largest public relations
companies. He was formerly head of
corporate and investor relations at
SkyePharma Plc, a specialist drug delivery
company and was director of corporate
communications at NTL. 
Phil Rogers (39)
Chief Executive Officer
Phil Rogers joined the Group in March
2007 as corporate development director,
and was appointed to the Board as chief
financial officer on 27 September 2007,
and subsequently as Chief Executive
Officer on 18 January 2008. Mr. Rogers
was previously vice-president of corporate
development at Electronic Arts and is a
chartered accountant. 
Robert Brent (39)
Chief Financial Officer
Robert Brent joined the Board as Chief
Financial Officer on 3 September 2008.
He was previously Head of Research at
KBC Peel Hunt (the Company’s joint
broker), where he led a team of 20
equities analysts and 3 editorial staff. He
has extensive knowledge of SCi through
five years of researching and analysing
the business and the video gaming
sector as a whole. Prior to joining KBC
Peel Hunt in 2001, he was an officer in
the Royal Navy for 10 years.
Roger Ames (59)
Non-executive director
Roger Ames was appointed to the Board
on 25 September 2006. He has extensive
experience of the entertainment industry
having previously held positions as
executive vice-president of Polygram and
president of Polygram Music Group in
1996. Subsequently he was chairman and
CEO of Warner Music Group from 1999
to 2004. Until April 2008 he was CEO of
EMI Music North America.
Nigel Wayne (54)
Non-executive director
Nigel Wayne joined the Board on 20 July
2001 and was appointed senior
independent director in 2004. He is a
chartered accountant with considerable
experience of advising and funding
growing companies in the technology and
media sectors. As a former finance
director of SCi until 1994 he also has
significant experience of the games
industry.
Don Johnston (53)
Non-executive director
Don Johnston joined the Board on
26 March 2007 and is managing director
and chairman of Deutsche Bank’s
European mergers & acquisitions
business. He has over 28 years
experience in M&A advisory work and
general corporate finance services.
Previously he was a board director of
Bankers Trust International where he ran
BT Wolfensohn, the Bank’s European
M&A practice and acted as co-head of
investment banking in Europe. 
Kevin Tsujihara (43)
Non-executive director
Kevin Tsujihara was appointed to the
Board on 12 June 2008. He is currently
president of Warner Bros. Home
Entertainment Group. He joined Warner
Bros. in 1994 and has previously held
positions as executive vice president, new
media, with oversight of all of the
company’s new media operations, and
executive vice president, corporate
business development and strategy. Prior
to joining Warner Bros. he founded
QuickTax, Inc., an internet-based
company specialising in electronic tax
filing and financial data. 
Aaron Brown (40)
Non-executive director
Aaron Brown joined the Board on 12 June
2008 and is a representative of Thorson
Investments and director of R20 Limited,
the investment vehicle of Robert
Tchenguiz. Mr. Brown joined R20 in 2002
and currently sits on a number of boards
of its portfolio companies including
Mitchells & Butlers, Somerfield, Bay
Restaurant Group, Globe Tenanted Pub
Company and Menzies Hotels. Prior to
joining R20, Mr. Brown was an investment
banker at Citigroup and Merrill Lynch and
a lawyer at Shearman & Sterling. 
Left to right, top to bottom: Tim Ryan, Non-executive Chairman;
Roger Ames, Non-executive director; Phil Rogers, Chief Executive;
Nigel Wayne, Non-executive director; Don Johnston, Non-executive director;
Kevin Tsujihara, Non-executive director; Aaron Brown, Non-executive director;
Robert Brent, Chief Financial Officer. SCi Entertainment Group Plc Annual Report and Accounts 2008 21
Company Secretary
Anthony Price
Registered office
Wimbledon Bridge House
1 Hartﬁeld Road
Wimbledon
London
SW19 3RU
Registered in England
No. 3121578
Joint brokers
Citigroup Corporate and Investment Banking
Citigroup Centre
Canada Square 
Canary Wharf
London
E14 5LB
KBC Peel Hunt Limited
111 Old Broad Street
London
EC2N 1PH
Solicitors
Addleshaw Goddard LLP
150 Aldersgate Street
London
EC1A 4EJ
Harbottle & Lewis LLP
Hanover House
14 Hanover Square
London
W1S 1HP
Auditors
BDO Stoy Hayward LLP
55 Baker Street
London
W1U 7EU
Registrars
Capita Registrars
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
West Yorkshire
HD8 0LA
Tel: 0871 664 0300
Bankers
Lloyds TSB Bank plc
10 Gresham Street
London
EC2V 7AE 22 SCi Entertainment Group Plc Annual Report and Accounts 2008
Governance
Directors’ report
The directors present their annual report on the affairs of the
Group, together with the accounts and independent auditors’
report, for the 12 months ended 30 June 2008.
Principal activities and business review
The principal activities of the Group and the Company are the
development, publishing, licensing and distribution of
entertainment software. The Companies Act 1985 requires the
directors’ report to include a business review giving a fair review
of the business of the Group and a description of the principal
risks and uncertainties facing the Group.
The Group’s development and performance during the year,
position at the year end and likely future prospects are reviewed
by the Chairman and Chief Executive on pages 6 to 15. Financial
aspects and principal risks and uncertainties are covered in the
financial review on pages 16 to 19. The information in each of
these sections, which fulfils the requirements of the business
review, is incorporated into this directors’ report by reference.
Principal subsidiaries and joint ventures are listed in note 15 to
the accounts on page 57.
Results and dividend
The results for the 12 months to 30 June 2008 are shown in the
consolidated income statement on page 36. No dividend has
been paid or declared for the year (2007: £nil).
Financial instruments
The Group’s policy on the use of financial instruments is set out
in note 28.
Proposed Company name change
The Notice of the forthcoming Annual General Meeting (“AGM”)
contains a special resolution to change the name of the
Company to Eidos plc. The Board recommends the change of
Company name for reasons referred to in the Chief Executive’s
statement on page 15.
Electronic Communication
At the AGM held on 20 February 2008 a resolution to facilitate
electronic communication with shareholders was passed. The
Company now intends to make information and documents
available to members through its website, as an alternative to the
post, in accordance with the Companies Act 2006 and the FSA’s
Disclosure Rules and Transparency Rules. Accompanying this
year’s Annual Report & Accounts is a letter giving shareholders
the option to choose how they wish to receive communications
from the Company.
The Company will continue to communicate in the usual way
with those shareholders who indicate they wish to receive
documents through the post. 
Information required by Section 992 of the Companies Act 2006
Details of the Company’s issued share capital are set out in note
23. All of the Company’s issued ordinary shares are fully paid up
and rank equally in all respects. The rights attached to them, in
addition to those conferred on their holders by law, are set out in
the Company’s Articles of Association (“the Articles”). There are
no restrictions on the transfer of ordinary shares or on the
exercise of voting rights attached to them, except (i) where the
Company has exercised its right to suspend their voting rights or
to prohibit their transfer following the omission of their holder or
any person interested in them to provide the Company with
information requested by it in accordance with Part 22 of the
Companies Act 2006 or (ii) where their holder is precluded from
exercising voting rights by the FSA’s listing rules or the City Code
on Takeovers and Mergers. 
Rules about the appointment and replacement of directors are
set out in the Articles. Changes to the Articles must be approved
by shareholders passing a special resolution. The directors’
powers are conferred on them by UK legislation and by the
Articles. The directors have been authorised by shareholders to
issue and allot ordinary shares, pursuant to the Articles. There is
no existing shareholder authority for the Company to purchase its
own shares. There are no agreements between any Group
company and any of its employees or any director of the
Company which provide for compensation to be paid to the
employee or director for termination of employment or for loss of
office as a consequence of a takeover of the Company. Details of
significant agreements to which Group companies are a party
containing provisions which would be triggered as a
consequence of a takeover of the Company, and details of the
effect of such provisions, are set out below.
Significant agreements – change of control 
The following significant agreements contain certain termination
and other rights for our counterparties upon a change of control
of the Company.
The Company is party to a distribution agreement with Warner
Bros. Home Entertainment Inc. under which Warner Bros.
distributes the Group’s products in the US, Canada and Mexico.
Under the agreement the Company may, in the event of a
change of control of the Company, terminate the distribution
agreement on six months’ written notice and the payment to
Warner Bros. of $2.5 million. 
Publisher license agreements with Microsoft Corporation and
Nintendo Co. Ltd provide that consent is required from the
licensor to assign the agreements to a third party upon a change
of control. A publisher licence agreement with Sony Corporation
(“Sony”) provides the licensor with a right of termination upon a
change of control under certain specific limited circumstances
including in the event that a controlling interest in the Company
passes to one of a specified list of parties that is in dispute with,
or competes with, Sony’s PlayStation
®
business.
The Group has in place a £25 million revolving credit facility
with Lloyds TSB Bank plc. (“Lloyds”). Under the terms of the
facility agreement Lloyds have the option to require that any of
  Governance
Directors’ report continued
the outstanding debt is repaid in full upon a change of control of
the Company. 
The Group’s equity incentive schemes contain provisions
relating to a change of control under which outstanding options
and awards would normally vest and become exercisable on a
change of control, subject to the detailed rules of the plans and
the satisfaction of any performance conditions at that time.
Directors
The names and brief biographical details of the current directors
are set out on page 20. All the directors served throughout the
period under review other than the following:
> Phil Rogers was appointed on 27 September 2007. 
> Jane Cavanagh, Bill Ennis and Rob Murphy resigned on
18 January 2008.
> Kevin Tsujihara and Aaron Brown were both appointed on
12 June 2008. 
> Robert Brent was appointed on 3 September 2008. 
Roger Ames retires by rotation at the forthcoming AGM and,
being eligible, offers himself for re-election. Kevin Tsujihara, Aaron
Brown and Robert Brent will retire at this year’s AGM having been
appointed since the last AGM and, being eligible, offer
themselves for election. Details of directors’ holdings of options
over ordinary shares are set out in the directors’ remuneration
report on page 34.
Directors’ responsibilities
The directors are responsible for keeping proper accounting
records which disclose with reasonable accuracy at any time the
financial position of the Group, for safeguarding the assets of the
Company, for taking reasonable steps for the prevention and
detection of fraud and other irregularities and for the preparation
of a directors’ report and directors’ remuneration report which
comply with the requirements of the Companies Act 1985. 
The directors are responsible for preparing the Annual Report
and the financial statements in accordance with the Companies
Act 1985. The directors are also required to prepare financial
statements for the Group in accordance with IFRS as adopted by
the European Union and Article 4 of the IAS Regulation. The
directors have chosen to prepare financial statements for the
Company in accordance with UK GAAP.
Each of the directors as at the date of this report, whose
names and functions are set out on page 20 confirms that, to the
best of his knowledge:
(a) the Group and parent Company financial statements in this
report, which have been prepared in accordance with
International Financial Reporting Standards, give a true and
fair view of the assets, liabilities, financial position and profit
of the Company and of the Group taken as a whole; and 
(b) the management report (which comprises the directors’ report
and the business review) includes a fair review of the
development and performance of the business and the
position of the Company and the Group taken as a whole,
together with a description of the principal risks and
uncertainties that they face.
Group financial statements
International Accounting Standard 1 requires that financial
statements present fairly for each financial year the Group’s
financial position, financial performance and cash flows. This
requires the faithful representation of the effects of transactions,
other events and conditions in accordance with the definitions
and recognition criteria for assets, liabilities, income and
expenses set out in the International Accounting Standards
Board’s ‘Framework for the preparation and presentation of
financial statements’. In virtually all circumstances, a fair
presentation will be achieved by compliance with all applicable
IFRS. A fair presentation also requires the directors to:
> consistently select and apply appropriate accounting policies;
> present information, including accounting policies, in a manner
that provides relevant, reliable, comparable and understandable
information; and
> provide additional disclosures when compliance with the
specific requirements in IFRS is insufficient to enable users to
understand the impact of particular transactions, other events
and conditions on the entity’s financial position and financial
performance.
Parent Company financial statements
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 as at the year end. In
preparing these financial statements, the directors are required to:
> select suitable accounting policies and then apply them
consistently;
> prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business;
> make judgements and estimates that are reasonable and
prudent; and
> state whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the financial statements.
Financial statements are published on the Group’s website in
accordance with legislation in the United Kingdom governing the
preparation and dissemination of financial statements, which may
vary from legislation in other jurisdictions. The maintenance and
integrity of the Group’s website is the responsibility of the
directors. The directors’ responsibility also extends to the ongoing
integrity of the financial statements contained therein.
Directors’ and officers’ indemnity insurance
The Group has taken out an insurance policy to indemnify the
directors and officers of the Company and its subsidiaries in
respect of certain liabilities which may attach to them in their
capacity as directors or officers of the Group, so far as permitted
by law. This indemnity policy subsisted throughout the year and
remains in place at the date of this report. The Company has
entered into separate indemnity deeds containing “qualifying
third-party indemnity provisions” (as defined at section 234 of the
Companies Act 2006) with each person who is now a director in
SCi Entertainment Group Plc Annual Report and Accounts 2008 23 24 SCi Entertainment Group Plc Annual Report and Accounts 2008
Governance
Directors’ report continued
respect of certain liabilities which may attach to him as a director
or former director of the Company or of any of its subsidiaries. All
of these provisions remain in force.
Employees
The Group’s employment policies and those regarding disabled
persons are set out in the corporate responsibility statement on
page 28.
Charitable and political donations
During the 12 months to 30 June 2008 SCi made charitable
donations of £8,530 (2007: £16,000). No political donations were
made in the year (2007: £nil).
Supplier payment policy
The Group’s policy is to settle terms of payment with suppliers
when agreeing the terms of each transaction, ensure that
suppliers are made aware of the terms of payment and abide by
the terms of payment. Trade creditors of the Group at the year-
end represented 24 days purchases (2007: 20 days). The
Company had trade creditors of £1.1 million at the year-end
(2007: £0.6 million) which represented 41 days purchases (2007:
28 days). 
Substantial shareholdings
On 26 September 2008 the Company had been notified of the
following interests in the ordinary share capital of the Company:
Number %
Time Warner Entertainment Ltd 37,518,080 14.23
Thorson Investments Ltd* 25,335,804 9.61
Deutsche Bank AG 23,841,568 9.05
Cazenove Capital Management Ltd 12,515,783 4.75
ING Bank NV 11,454,648 4.35
Legal & General Investment Management 10,089,628 3.83
Pioneer Investments 9,148,355 3.47
* In addition to holding ordinary shares, Thorson Investments Ltd and associated
vehicles also have a long economic interest held through contracts for difference
over 32,778,106 shares (12.44%) of the Company.
Directors’ shareholdings
The directors who held office at 30 June 2008 had the following
interests in the shares of the Company:
30 June 2008 30 June 2007
Number Number
Tim Ryan 81,488 43,141
Nigel Wayne 21,110 11,176
Don Johnston 41,555 22,000
On 19 September Phil Rogers made a market purchase of
60,000 ordinary shares of the Company. There have been no
other changes in the directors’ shareholdings between 30 June
2008 and the date of these financial statements. The interests of
the directors under the Company’s equity incentive plans are
shown in the directors’ remuneration report.
Directors’ statement as to disclosure of information to
auditors
Each director in office at the date of this report confirms that:
(a) so far as he is aware, there is no relevant audit information of
which the Company’s auditors are unaware, and
(b) he has taken all the steps that he ought to have taken as a
director to make himself aware of any relevant audit
information and to establish that the Company’s auditors are
aware of that information.
Auditors
BDO Stoy Hayward LLP have expressed their willingness to
continue in office and a resolution to re-appoint them will be
proposed at the AGM. 
By order of the Board,
Anthony Price
Company Secretary
26 September 2008 Governance
Corporate governance
The Board is committed to establishing and maintaining high
standards of corporate governance; the process by which the
Group is directed and managed, risks are identified and
controlled and effective accountability assured. The following
statement is intended to describe how the Group has applied the
principles of the updated Combined Code on Corporate
Governance published in June 2006 (the “Code”), which applied
to the Group for the period under review.
Composition and operation of the Board 
The Board currently comprises a non-executive chairman, five
further non-executive directors and two executive directors. 
The roles of Chairman and Chief Executive are held separately
with a clear division of responsibility between them. Nigel Wayne
is the senior independent non-executive director. All the members
of the Board are equally responsible for the management and
proper stewardship of the Group and together bring a wide range
of skills and international experience to bear on issues under
consideration.
Two shareholders of the Company, Warner Bros. and Thorson,
each have the right to nominate one director to the Board. Kevin
Tsujihara was appointed as non-executive director on 12 June
2008 as a representative of Warner Bros. Aaron Brown was
appointed as non-executive director on 12 June 2008 as a
representative of Thorson. Neither director may vote where there
are conflicts of interest between the Group and the shareholder
they represent. Neither Kevin Tsujihara nor Aaron Brown is
independent for the purposes of the Code because they are
representatives of major investors in the Company.
The Board has considered the independence of the other
non-executive directors and believes that each of Tim Ryan,
Roger Ames, Nigel Wayne and Don Johnston is independent of
management and free from any material business or other
relationship with the Company or the Group that could interfere
with the exercise of their independent judgment.
In this context the Board has considered the 20,000 share
options awarded to Nigel Wayne and Tim Ryan in 2001 and has
concluded that the awards have not adversely impacted their
independent judgement after giving due consideration to the
integrity, contribution and conduct of each of these directors.
Nigel Wayne’s options lapsed in July 2008. Tim Ryan’s share
options will be exercised or will lapse no later than October 2008.
All directors are required to stand for re-election at least every
three years. Brief biographical details of all the directors are set
out on page 20. 
The Board meets regularly throughout the year and more
frequently where business needs require. The Board has a
schedule of matters reserved to it for decision and the
requirement for Board approval on these matters is
communicated throughout the senior management of the Group. 
The schedule of matters reserved to the Board is available on
the Company’s website together with the terms of reference for
each Board committee.
Matters reserved for the Board include approval of the Group’s
strategy, setting and monitoring performance against the annual
budget, business acquisitions and disposals, material capital
commitments, appointments to subsidiary company boards and
commencing or settling material litigation. 
Prior to each meeting directors are sent an agenda together
with additional information, including financial reports, as
appropriate for the meeting.
Directors have access to the advice and services of the
Company Secretary and may take, at the Company’s expense,
independent professional advice. The Board has adopted a
training and induction policy which includes annual updates from
the Group’s corporate advisors and an induction process for new
directors.
Board committees
The Board has delegated responsibility in a number of areas to
three sub-committees with clearly defined terms of reference:
The audit committee
The audit committee meets at least twice a year to review the
financial results, the Group’s internal control systems and the
findings of the external independent auditors. It also considers
the Group’s financial accounting procedures and policies as well
as the cost-effectiveness, independence and objectivity of the
external auditors by monitoring the level and appropriateness of
any non-audit work provided by them. The current members of
the audit committee are Nigel Wayne (Committee Chairman),
Don Johnston and Roger Ames. Nigel Wayne is a chartered
accountant and has recent and relevant financial experience.
The remuneration committee
A description of the composition, responsibility and operation of
the remuneration committee is set out in the directors’
remuneration report on page 29.
The nomination committee
The nomination committee is responsible for reviewing the
composition and structure of the Board and for recommending
Board appointments and interviewing potential candidates. The
committee meets on an ad hoc basis as required. The current
members of the nomination committee are Tim Ryan (Committee
Chairman), Roger Ames, Nigel Wayne, Don Johnston and Phil
Rogers. The committee consults with the executive directors
when considering appointments and external search agencies
are consulted to ensure that a wide range of candidates can be
considered.
SCi Entertainment Group Plc Annual Report and Accounts 2008 25 26 SCi Entertainment Group Plc Annual Report and Accounts 2008
Governance
Corporate governance continued
Board and committee meetings
During the 12 months to 30 June 2008 there were ten scheduled
Board meetings, three audit committee meetings, four
remuneration committee meetings and one meeting of the
nomination committee. Directors’ attendances at the meetings
are set out in the table below.
Board AuditRemunerationNomination
(10 meetings) (3 meetings) (4 meetings) (1 meeting)
Tim Ryan 9 (10) – 4 (4) 1 (1)
Nigel Wayne 10 (10) 3 (3) 4 (4) 1 (1)
Roger Ames 8 (10) 2 (3) 4 (4) 1 (1)
Don Johnston 9 (10) 3 (3) 3 (4) 1 (1)
Phil Rogers 8 (8) – – 1 (1)
Kevin Tsujihara 1 (1) – – –
Aaron Brown 1 (1) – – –
Jane Cavanagh 6 (6) – – –
Rob Murphy 6(6) – – –
Bill Ennis 6(6) – – –
Figures in brackets indicate the number of meetings held in the period in which the
director was a member of the Board or Committee.
Operational management
The executive directors are supported by a team of senior
managers who are responsible for assisting in the development
and achievement of the Group’s corporate strategy, business
plans and budgets and for reviewing operational and financial
performance. The management team, together with the executive
directors, are responsible for agreeing and monitoring policies
and other matters not reserved for the Board.
Relations with shareholders
The directors meet regularly with institutional shareholders, fund
managers and analysts and are available to answer questions
from private shareholders. Communication with all shareholders is
facilitated by the issue of full year and interim reports which,
together with other corporate information, interim management
statements and press releases, are available on the Company’s
website: www.sci.co.uk. The AGM provides a forum for all
shareholders to raise issues with the directors. The notice
convening the meeting is normally issued at least 20 working
days in advance and separate resolutions are proposed on each
substantially separate issue.
Risk management and internal controls
The directors are responsible for the Group’s system of internal
control and for reviewing its effectiveness. However, such a
system can only provide reasonable, but not absolute, assurance
against material misstatement or loss.
There is an ongoing process for identifying, evaluating and
managing the significant risks faced by the Group, in compliance
with the guidance on Internal Control: Guidance for Directors on
the Combined Code (the Turnbull Report) published in
September 1999. This process, which is tied closely to
operations, is regularly reviewed by the Board. The key
procedures that the directors have established to ensure risk
management and internal controls are effective are as follows:
Risk identification
The Group has identified its major risks and has policies in place
to avoid and/or mitigate those risks. All senior members of staff
participate in this process and the results are reported to the
Board.
Operational risks
Operational management are responsible for the identification
and evaluation of significant risks applicable to their area of
business and, in conjunction with the Board, for designing and
operating suitable internal controls. The senior management
team, which includes the executive directors who report directly
to the Board, are responsible for monitoring and controlling all
operational risks. The Board regularly reviews risk summaries so
that prompt action can be taken in an appropriate manner. In
addition, the internal control process is supported by:
(a) a comprehensive financial control and rolling forecast system;
(b) a flat management structure which facilitates open and timely
communication;
(c) sophisticated project management systems to coordinate and
control key development and publishing activities;
(d) an experienced legal function that supports the Group’s
business needs; and
(e) a programme of commercial insurance covering key risks
including intellectual property matters, product liability and
business interruption.
The Board has considered the need for an internal audit
function and, given the scale and nature of the Group’s
operations, has concluded that one is not required at the present
time. Governance
Corporate governance continued
Compliance status
The Company is committed, where possible, to comply with the
recommendations of the Code. The provisions in the Code with
which the Company did not comply throughout the period ending
30 June 2008 were as follows:
(A.6) The Board has not yet completed a formal annual
evaluation of its own performance and that of its
committees and individual directors, but intends to do so
in the current year. 
(A.1.3) The Code requires that the non-executive directors should
meet without the chairman present at least annually to
appraise the chairman’s performance. During the year the
non-executives did not meet to appraise the chairman’s
performance. However, the non-executive directors intend
to do as soon as practicable as part of Board and director
performance evaluation process referred to above.
(B.1.3) Tim Ryan and Nigel Wayne were previously awarded a
small number of legacy share options in 2001. The Board
has determined that no further share options will be
granted to any non-executive directors. Nigel Wayne’s
options lapsed in July 2008. Tim Ryan’s share options will
be exercised or will lapse no later than October 2008.
Details of directors’ remuneration and related matters are set
out in the directors’ remuneration report on page 29.
External audit matters
Independence
The audit committee has sole responsibility for assessing the
independence of the external auditors, BDO Stoy Hayward LLP.
Each year the committee undertakes to:
> seek reassurance that the external auditors and their staff
have no family, financial, employment, investment or business
relationship with the Company. To this end the committee
requires the external auditor and their associates to confirm
this in writing, and detail the procedures which the auditor has
carried out in order to make this confirmation;
> check that all partners engaged in the audit process are
rotated at least every five years;
> assess the likely impact on the auditors’ independence and
objectivity before awarding them any contract for additional
services; and
> have as a standing agenda item auditor independence issues
at each audit committee meeting.
Going concern
The directors confirm that, after making enquiries, they have a
reasonable expectation that the Group has 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. 
SCi Entertainment Group Plc Annual Report and Accounts 2008 27 28 SCi Entertainment Group Plc Annual Report and Accounts 2008
Governance
Corporate responsibility statement
SCi has a strong commitment to its customers, shareholders,
employees and, in a wider context, society at large. The Group
seeks to enhance its relationships with stakeholders and manage
risks in key areas such as health and safety. SCi is included in
the FTSE4Good, an index of companies that meet specified
corporate responsibility standards. The following policies
represent the basis of the Group’s approach to corporate
responsibility.
Employment policy and employee involvement
The Group’s employees are integral to the success of the
business and, as a result, the Group pursues employment
practices which are designed to attract, retain and develop this
talent to ensure the Group retains its strong market position with
motivated and satisfied employees. 
The Board and senior managers take responsibility for
employment matters and have established suitable policies and
guidelines. Wherever possible, the Group seeks to benchmark
itself against industry best practice. It is the Group’s policy to give
all staff an opportunity to share in the future success of the
business. To this end, the Board recommended, and shareholders
approved, new equity incentive plans at a general meeting on
19 May 2008 and market value share options were subsequently
granted to all Group employees on 7 July 2008. 
It is Group policy to communicate with all employees on major
matters to encourage them to take a wider interest in the affairs
of their employing company and the Group. This is done in a
variety of ways including via email announcements, internal
intranet bulletins and briefing sessions. There are well established
procedures, to ensure that the views of employees are taken into
account in reaching decisions likely to affect their interests.
The Group assists its employees in achieving an appropriate
work/life balance, by measures including policies on parental,
maternity and paternity leave and flexible working where
appropriate. Workplace discrimination or harassment is not
tolerated and the Group is committed to providing equal
opportunities to all employees. The Group operates a system of
annual performance appraisals and training is provided to assist
employees to develop skills and enhance their professional
development. Vacancies are advertised internally and promotion
from within is encouraged where possible.
Disabled employees
Applications for employment by disabled persons are always fully
considered, bearing in mind the aptitudes of the applicant
concerned. In the event of members of staff becoming disabled
every effort is made to ensure that their employment with the
Group continues and that appropriate training is arranged. It is
the policy of the Group that the training, career development and
promotion of disabled persons should, as far as possible, be
identical with that of other employees.
Environmental policy
SCi seeks to ensure that its operations and products cause the
minimum detrimental impact to the environment. The Group’s
objective is to comply with environmental legislation in all
countries in which it operates and to promote effective resource
management, energy efficiency, waste minimisation and recycling
initiatives. Due to the nature of its business, the Group does not
have a high environmental impact. 
Local internal initiatives include recycling of paper, toner
cartridges and computer equipment, use of fair-trade and where
possible, environmentally friendly products and promotion of
energy conservation. The Group also uses telephone and video
conferencing facilities in its major offices in order to reduce
unnecessary national and international travel. In the UK, the
Group participates in the Cycle to Work Scheme, a government
initiative to promote healthier commuting and reduce
environmental pollution.
At the last Annual General Meeting shareholders approved a
resolution enabling the Company to communicate electronically
with members, thereby reducing the volume of printed
documentation and postage.  
Community
The Group aims to partner with local communities in which it
operates by supporting local initiatives and charitable events. SCi
encourages its employees to participate as volunteers in such
activities and supports these initiatives through donations,
sponsorship, employee time and/or other contributions. During
the year the Group participated in a variety of community related
initiatives including:
> provision of work experience programmes for secondary
school students to educate young people in technical skills
and business practices within the games industry;
> studio visits, student internships, lecturing and career day
activities in the US to provide participants with insight into the
game development process; and
> donations of computer equipment and games to local
charities.
The Group continues to work with the staff and students of the
Northern Regional College in Northern Ireland, which has
pioneered education in games design and development at pre-
degree level in the UK. Earlier this year we welcomed a group of
students, together with one of the course tutors, to our
Wimbledon headquarters where they met with Eidos staff from
different parts of the business to gain first-hand accounts of
working within the games industry. In addition a number of Eidos
staff in both creative and commercial roles provided feedback on
coursework the students had undertaken and led seminars on
various aspects of the development process.
During the 12 months to 30 June 2008, SCi made charitable
donations of £8,530 (2007: £16,000). Governance
Directors’ remuneration report
to the shareholders of SCi Entertainment Group Plc
1. Introduction and compliance
This report has been prepared in accordance with the Companies
Act 1985 and summarises the Company’s remuneration policy
and particularly its application to the directors. The report also
describes how the Company applies the principles of the
Combined Code on Corporate Governance 2006 (the “Code”) in
relation to director’s remuneration. A resolution to approve this
report will be proposed at the forthcoming Annual General
Meeting (“AGM”).
2. The constitution and remit of the remuneration committee
The remuneration committee (the “Committee”) is appointed by
the Board and currently comprises Nigel Wayne (Committee
Chairman), Roger Ames, Don Johnston and Tim Ryan. The
Committee’s principal functions are to:
> advise the Board on the broad framework for executive
remuneration;
> determine the remuneration packages of the executive
directors; and
> recommend and monitor the level and structure of
remuneration for senior management. 
The Committee also reviews the performance of the executive
directors and sets the scale and structure of their remuneration
and the basis of their service agreements with due regard to
market practice and the interests of shareholders. It also has
responsibility for setting the Chairman’s fee level (with the
Chairman excluded from deliberations in relation to his own fees)
and administers the Group’s incentive compensation plans.
The Committee meets at least twice per year and, additionally,
on an ad hoc basis as necessary. The Committee has appointed
Hewitt New Bridge Street LLP (“HNBS”), an independent external
firm which has no other connection with the Company, to advise
it on various aspects of remuneration. 
During the year, the Committee was also provided with legal
services from Addleshaw Goddard LLP (one of the Company’s
legal advisers). The Chief Executive attends meetings of the
Committee by invitation other than when matters directly
concerning his own remuneration are under consideration. No
director is involved in deciding his own remuneration, whether
determined by the Committee or, in the case of the non-
executives, by the Board. 
The Committee’s terms of reference are available on the
Group’s website.
3. Remuneration policy for executive directors
In determining remuneration packages the Committee has regard
to the importance of retaining and motivating executive directors
as well as linking reward to the Group’s performance. Within this
context, the Committee’s policy on executive director
remuneration is to:
> pay a competitive base salary designed to attract and retain
executive directors relevant to each director’s role, experience
and the external market;
> provide incentive arrangements which are subject to
appropriately tailored challenging performance targets
reflecting the Group’s objectives and recognise the
importance of providing sustained motivation of management
to focus on longer term, as well as annual, performance; 
> take due regard of pay levels elsewhere in the Company; and,
> align the interest of the executive directors with those of
shareholders.
In order to achieve these objectives the Committee’s approach
is that a significant proportion of the overall remuneration
package should be linked to the performance of the Group,
through participation in an annual performance related bonus
scheme and long-term incentive arrangements. The Committee
sets performance criteria based on the financial targets set
during the Group’s budgeting process, taking into account the
strategic aims of the Group as well as the interests of
shareholders. The targets for the performance criteria are
designed to be challenging.
The Committee determines whether these criteria have been
met, based on relevant financial information and measured on a
consistent basis. Where necessary, the Committee has access to
the expertise of the audit committee to assist in its determination
of the extent to which performance targets have been met. The
above policy is expected to continue to be applied in respect of
the forthcoming and subsequent years. 
During the year the Committee concluded a review of long-
term incentive provision of the Group following the expiration of
the SCi 1996 Share Option Plan in July 2006. The key conclusion
of the review was that employee share ownership should
continue to remain a primary mechanism through which
executives and the wider employee base are rewarded and
aligned with the Group objective of creating shareholder value.
Use of broad based long-term incentives has been part of the
SCi culture and it is intended that this will remain the case in
future years. Proposals for new long-term incentive plans that
were designed as a result of the review were approved by
shareholders at a general meeting on 19 May 2008 and market
value share options were subsequently granted to Group
employees on 7 July 2008. Full details of the award made to the
Chief Executive are set out below.
The Committee will regularly review the appropriateness of the
Company’s incentive arrangements to ensure that they continue
to take due account of investors’ best practice expectations while
also appropriately reflecting the particular circumstances of the
Company.
4. Remuneration policy and terms of engagement for non-
executive directors
The Company’s policy on non-executive director remuneration is
to pay fees which are in line with market practice, based upon
the experience and expertise of the director concerned as well as
the time commitment and responsibilities of the role. The fees
paid to the non-executive directors are determined by the Board
as a whole.
The non-executive directors receive no other benefits, with the
exception of a small number of legacy share options granted
upon appointment in 2001 to Tim Ryan and Nigel Wayne, as
SCi Entertainment Group Plc Annual Report and Accounts 2008 29 30 SCi Entertainment Group Plc Annual Report and Accounts 2008
Governance
Directors’ remuneration report continued
detailed on page 34. The Board has determined that no further
share options will be granted to any non-executive director. Nigel
Wayne’s options lapsed in July 2008. Tim Ryan’s share options
will be exercised or will lapse no later than October 2008. 
Each non-executive director is appointed for a specified term
subject to re-election and a rolling one month notice period. Their
letter of appointment contains no provision for payment or
compensation on early termination. They are not eligible for
bonus payments and their service is not pensionable. Each of the
non-executive directors are entitled to reimbursement of
reasonable expenses incurred in the course of their duties.
For 2008, the fee for acting as a non-executive director was
£25,000 a year. The fee for the non-executive Chairman was
£85,000 a year. Neither Kevin Tsujihara nor Aaron Brown receive
fees from the Company as non-executive directors nominated by
significant shareholders unless they are required to commit more
than two days per month to the performance of their duties.
5. Remuneration packages
(a) Basic salary
Each executive director’s base salary is set after account is taken
of individual performance, responsibilities and experience in post.
Salaries are normally reviewed on an annual basis with account
taken of salary levels in companies of a comparable size, sector
and pay and employment conditions elsewhere within the Group.
The current salary levels of the executive directors are set out
below:
Chief Executive (Phil Rogers) £240,000
Chief Financial Officer (Robert Brent*) £200,000
* appointed 3 September 2008. 
Phil Rogers’ basic salary was reviewed and increased from
£208,889 with effect from 18 January 2008 to reflect his
appointment as CEO. 
(b) Benefits in kind
Benefits for the executive directors during the period consisted of
a car allowance, private medical and dental insurance, life
assurance and permanent health insurance. Robert Brent does
not receive a car allowance. The value of benefits is not
pensionable. 
(c) Pensions
Pension contributions are made on behalf of executive directors
based on 15% of basic salary.
(d) Annual performance related bonus 
The executive directors participate in an annual bonus scheme
which is administered by the Committee. Payments under the
scheme have historically been based on exceeding the Group’s
profit targets and capped for the Chief Executive at 100% of salary.
For the year ended 30 June 2008, the performance targets were
revised to reflect the very specific circumstances arising during the
year following Phil Rogers’ appointment. The maximum bonus
potential was set at 100% of his salary over the period from his
appointment to the Board on 26 September 2007 to 30 June 2008.
80% of the bonus payable was based on the following targets: 
a) Reduction of headcount; 
b) Reduction of annual overheads; and 
c) Management of exceptional one-off restructuring costs.
The payout schedule was set as a sliding scale with the
remaining 20% of bonus to be determined at the discretion of
the Committee in respect of achieving progress towards the
restructuring and refinancing of the business in accordance with
the strategy plan announced with the interim results on
29 February 2008.
As a result of performance delivered against these targets, for
the year ended 30 June 2008, the remuneration committee has
recommended that the bonus out-turn for Phil Rogers be 100%
of salary earned.
No bonus payments have been made to Jane Cavanagh, Bill
Ennis or Rob Murphy in respect of the year ended 30 June 2008.
For the 2008/2009 financial year, the maximum bonus
opportunity for Phil Rogers and Robert Brent will be 100% of
base salary earned during the period. With regard to the
performance targets, these are structured on a sliding scale
reflecting the Group’s budgeted profit expectations (representing
80% of the total bonus potential) and personal performance
(representing 20% of the total bonus potential). Personal
performance targets are linked to specific business key
performance indicators and personal objectives. With regard to
the part of bonus determined by the Group’s budgeted profit
expectations, achievement of 125% of budget is required for a
full payout under this part of the bonus. At the discretion of the
Committee, and by agreement with the executive, the bonus may
be paid in cash or in shares.
In line with the Association of British Insurers’ Guidelines on
Responsible Investment Disclosure, the Committee will ensure
that the incentive structure for executive directors and senior
management will not raise environmental, social or governance
(“ESG”) risks by inadvertently motivating irresponsible behaviour.
More generally, with regard to the overall remuneration structure,
there is no restriction on the Committee which prevents it from
taking into account corporate governance on ESG matters.
Annual bonus awards are not pensionable. Governance
Directors’ remuneration report continued
(e) Long-term incentive plans
The 2008 LTIP 
At the Company’s AGM on 7 February 2006 shareholders
approved the terms of a long-term incentive plan (“LTIP”) which
applied to all executive directors and was based on corporate
performance in the three year period to 30 June 2008 (the “2008
LTIP”). Under the 2008 LTIP, corporate performance was
measured in three ways; cumulative EBITDA, profit growth and
share price performance over the period. As the threshold targets
were not achieved during the period, no payments were made
under the 2008 LTIP and the plan has now expired.
New long-term incentive plans
As set out above, following the expiry of the SCi 1996 Share
Option Plan, a review of long-term incentive provision was
undertaken during the year. 
The result of the review was that the following share plans
were put to and approved by shareholders on 19 May 2008:
> the SCi Approved Share Option Plan 2008 (“2008 approved
option plan”);
> the SCi Unapproved Share Option Plan 2008 (“2008
unapproved option plan”); and
> the SCi Share Plan 2008 (“2008 share plan”).
The plans are designed to give the Committee the flexibility to
provide an appropriate incentive structure within the Group, with
the primary aim of ensuring that the Group’s long-term incentive
policy supports its corporate strategy and drives the generation of
substantial returns for shareholders.
All three incentive plans operate within a combined umbrella
annual individual award limit of 200% of salary (based on the
face value of shares awarded and irrespective of award type i.e.
options or conditional awards). However, for 2008 only, an
exceptional award limit of 300% of salary applied.
In the year under review, no awards were made under the SCi
Share Plan 2008, with awards being restricted to the approved
and unapproved option plans. Full details are set out below of
each plan, including details of the performance conditions
applying to Phil Rogers’ option grant.  
Approved and unapproved option plans
Under the approved and unapproved option plans, options are
granted to eligible participants at the market price at the date of
grant. Options granted to executive directors may normally be
exercised between the third and tenth anniversaries of date of
grant, subject to challenging performance conditions set at the
time of granting the award. 
For options granted to the executive directors in 2008
subsequent to the year end, the performance condition is
structured such that the exercise of an option will be determined
by the Company’s relative total shareholder return (‘‘TSR’’)
performance, compared to the TSR performance of the constituents
of the FTSE Small Cap index (excluding investment trusts) over a
three year performance period. Options will become exercisable
in accordance with the following schedule:
TSR ranking of the Company
compared to the FTSE Small Cap index Vesting percentage of the ordinary
over the performance period shares subject to an Option 
Below median ranking 0%
Median ranking 10%
At least upper quartile ranking 100%
Between the above points Straight-line vesting
The Committee can set different performance conditions for
future options from those that will apply in respect of options
granted in 2008. However, the Committee acknowledges the
need to set challenging targets in light of the circumstances
prevailing at the relevant time and will have regard to investors’
best practice expectations when setting such targets.
The Committee chose relative TSR growth as the performance
condition for share options granted in 2008 as it believes it to be
a demanding and appropriate measure which encourages the
generation of sustained long-term shareholder value. The
Committee will consult with its major shareholders in respect of
the performance conditions that will apply to the main grant of
awards (if any) to executive directors in 2009.
Following shareholder approval of the plans, market value
share options were granted to all Group employees on 7 July
2008. Phil Rogers was granted an option over 1,200,000 shares
at an exercise price of 37 pence per share. Robert Brent was
granted an option over 500,000 shares on 16 September 2008
at an exercise price of 33 pence per share. Both grants to the
executive directors were subject to the relative TSR performance
condition referred to above.
2008 Share Plan
The 2008 Share Plan is a long-term incentive plan enabling
conditional awards of whole shares. The plan also includes a
matching facility, whereby the Company can relate awards made
under the Plan to a personal investment in SCi shares by an
employee. Awards to executive directors would normally vest after
three years subject to performance targets. No awards have been
made under the SCi Share Plan 2008 to date.
Each of the new plans incorporate standard change of control
and good leaver provisions with performance targets being
applied and pro-rata reduction for the time elapsed since the
date of award (subject to Committee discretion). The rules of all
the Group’s equity incentive schemes comply with the 10% in 10
year dilution limit guideline of the Association of British Insurers.
SCi Entertainment Group Plc Annual Report and Accounts 2008 31 32 SCi Entertainment Group Plc Annual Report and Accounts 2008
Governance
Directors’ remuneration report continued
Phantom share options
The Group operates a cash settled equity incentive plan for certain employees in jurisdictions where securities laws or regulatory
constraints result in the delivery of equity being impractical. Cash awards under this scheme are based on movements in the Group’s share
price. Phil Rogers was granted two awards under the plan prior to his appointment to the Board, as an alternative to awards under the SCi
1996 Share Option Plan which expired in July 2006. However, since becoming a Board director, he has voluntarily surrendered these
awards without compensation.
Surrendered on
1 July 2007 Granted Exercised 7 April 2008 30 June 2008 Exercise price
Number Number Number Number Number Pence Exercisable
Phil Rogers – 50,000 – (50,000) – 468 2 April 2010 to 2 April 2014
– 200,000 – (200,000) – 296 3 September 2010 to 3 September 2014
6. Service contracts
Details of the terms of appointment and notice periods of directors who served during the year were as follows:
Date of appointment Expiry date of current term/Notice period
Phil Rogers 27 September 2007 Terminable on 12 months’ rolling notice
Robert Brent* 3 September 2008 Initially terminable on 15 months’ notice, reducing to 12 months rolling notice by
3 December 2008
Jane Cavanagh 3 May 1996 Terminable on 12 months’ rolling notice
Bill Ennis 3 May 1996 Terminable on 12 months’ rolling notice
Rob Murphy 21 April 1997 Terminable on 6 months’ rolling notice 
Tim Ryan 19 October 2001 26 September 2010/Terminable on 1 month’s rolling notice
Nigel Wayne 20 July 2001 12 July 2010/Terminable on 1 month’s rolling notice
Roger Ames 25 September 2006 25 September 2009/Terminable on 1 month’s rolling notice
Don Johnston 26 March 2007 26 March 2010/Terminable on 1 month’s rolling notice
Kevin Tsujihara 12 June 2008 12 June 2011/Terminable on 1 month’s rolling notice
Aaron Brown 12 June 2008 12 June 2011/Terminable on 1 month’s rolling notice
* Robert Brent was appointed after the year end, on 3 September 2008.
Jane Cavanagh, Bill Ennis and Rob Murphy resigned from the Board on 18 January 2008.
It is the Committee’s general policy for the notice periods of executive directors to be no longer than 12 months. An exception was
made in the case of Robert Brent as part of an overall package negotiation to attract and recruit a high calibre candidate. On joining the
Company his notice period is 15 months, reducing by one month at the end of each completed month in post until 3 months have
elapsed after which time his notice period reverts to a 12 months’ rolling notice period.
The service contracts of the executive directors contain provisions, exercisable at the option of the Company, to pay base salary and
benefits in lieu of notice. The service contract of Robert Brent also provides for payment of a pro-rated bonus entitlement upon
termination other than in the event of resignation or termination for cause. In the event of such pro-rated bonus becoming payable, the
amount will be pro-rated for time, and will take into account actual performance achieved to date of leaving, against targets set for the
period.
The service contract of Jane Cavanagh included a provision for a payment in lieu of notice to be made that included base salary,
benefits and annual bonus calculated by reference to bonus opportunity accrued during the relevant year and any unexpired notice
period based on average bonuses paid over the three previous years.
Jane Cavanagh, Bill Ennis and Rob Murphy resigned as directors of the Company on 18 January 2008 and remained on paid leave
until 16 July 2008. Details of the payments made to these former directors are included in the emoluments table.
The Committee recognises that executive directors may be invited to accept external non-executive directorships and that this can
broaden the knowledge and experience of directors for the benefit of the Company. Accordingly, subject to Board approval, executive
directors may accept such appointments provided they are not likely to lead to a conflict of interest or constrain their abilities to fulfil their
duties. They are also allowed to retain any fees paid under such appointments. During the year Bill Ennis served as a non-executive
director of Jalepo Ltd for which he did not receive any fees.  SCi Entertainment Group Plc Annual Report and Accounts 2008 33
Governance
Directors’ remuneration report continued
7. Performance graph
The following graphs show the Company’s total shareholder return (“TSR”) since 30 June 2003 relative to the FTSE Small Cap Index and
the FTSE Software & Computer Services Index. TSR represents share price growth plus reinvested dividends. The two indices have been
selected as they most closely reflect how the Company is categorised and each provide a broad equity market index against which the
Company’s performance can be compared for these limited purposes, recognising the uniqueness of the niche market in which the
Company operates and the absence of any material comparator UK companies.
Total shareholder return Total shareholder return
Relative to FTSE Small Cap Index Relative to FTSE Software & Computer Services Index
8. Individual directors’ remuneration 
The remuneration of each director for the 12 months ended 30 June 2008 was as follows:
Taxable Annual 
Basic salary/fees
1
Paid leave
2
benefits bonus
3
Total 2008 Total 2007 Pension 2008
4
Pension 2007
4
£000s £000s £000s £000s £000s £000s £000s £000s
Executive
Phil Rogers 171.1 – 7.2 171.1 349.4 – 24.8 –
Jane Cavanagh
5
220.3 187.0 14.0 – 421.3 604.0 61.1 61.2
Bill Ennis
5
111.2 94.3 12.1 – 217.6 345.8 30.8 30.9
Rob Murphy
5
111.2 94.3 10.0 – 215.5 344.8 30.8 30.9
Non-executive
Tim Ryan 83.6 – – – 83.6 86.6 – –
Nigel Wayne 27.5 – – – 27.5 25.5 ––
Roger Ames 24.6 – – – 24.6 19.6 – –
Don Johnston 24.6 – – – 24.6 6.7 – –
Kevin Tsujihara
6
– –– – – – ––
Aaron Brown
6
– – – – – – – –
Totals 774.1 375.6 43.3 171.1 1,364.1 1,433.0 147.5 123.0
1
Represents salaries paid from 7 July 2007 to 30 June 2008.
2
Represents salaries paid following resignation as directors on 18 January 2008.
3
Represents bonus recommended by the Committee in respect of the period ended 30 June 2008.
4
Pension represents contributions to money purchase schemes.
5
Jane Cavanagh, Bill Ennis and Rob Murphy all resigned as directors of SCi Entertainment Group Plc on 18 January 2008. They remained on paid leave until 16 July 2008
at which time they left the Company’s employment. The Company has agreed with Jane Cavanagh and Bill Ennis that they will receive pay in lieu of salary and benefits in
kind in respect of the unexpired period of their respective notice periods but the cash value of salary and benefits is not stated because that value has not yet been
agreed. Jane Cavanagh and Bill Ennis also retain their vested stock options and benefits under long-term incentive plans, to the extent that such options and benefits had
vested prior to the termination of their employment. 
6
No fees are payable under the terms of appointment of Kevin Tsujihara and Aaron Brown unless either non-executive director is required to commit more than two days per
month to their duties. 
30 June
2003
30 June
2004
30 June
2005
30 June
2006
30 June
2007
30 June
2008
0
50
100
150
200
250
300
350
400
450
500
SCi Entertainment Group
FTSE Small Cap Index
Source: Thomson Datastream
30 June
2003
30 June
2004
30 June
2005
30 June
2006
30 June
2007
30 June
2008
0
50
100
150
200
250
300
350
400
450
500
SCi Entertainment Group
FTSE All-Share Software & Computer Services Index
Source: Thomson Datastream 34 SCi Entertainment Group Plc Annual Report and Accounts 2008
Governance
Directors’ remuneration report continued
9. Directors’ interests in share options
The interests of the directors in share options of the Company at 30 June 2008 are set out in the table below:
30 June 2008
or date of
1 July 2007 Granted Exercised retirement Exercise price
Number Number Number if earlier Pence Exercisable
Jane Cavanagh* 80,000 – – 80,000 81 20 August 2004 to 20 August 2008
80,000 – – 80,000 72 16 June 2006 to 16 June 2010
43,865 – – 43,865 125.5 31 March 2007 to 31 March 2011
270,000 – – 270,000 333.5 30 June 2008 to 30 June 2012
473,865 – – 473,865
Bill Ennis* 80,000 – – 80,000 81 20 August 2004 to 20 August 2008
170,000 – – 170,000 72 16 June 2006 to 16 June 2010
410,000 – – 410,000 100.5 27 August 2007 to 27 August 2011
270,000 – – 270,000 333.5 30 June 2008 to 30 June 2012
930,000 – – 930,000
Rob Murphy 80,000 – – 80,000 81 20 August 2004 to 20 August 2008
84,809 – – 84,809 125.5 31 March 2007 to 31 March 2011
85,000 – – 85,000 100.5 27 August 2007 to 27 August 2011
270,000 – – 270,000 333.5 30 June 2008 to 30 June 2012
75,000 – – 75,000 484 17 October 2008 to 17 October 2012
594,809 – – 594,809
Tim Ryan
†
20,000 – – 20,000 85 1 October 2004 to 1 October 2008
Nigel Wayne
†
17,500 – – 17,500 47.5 18 July 2004 to 18 July 2008
2,036,174 – – 2,036,174
* Under the terms of their severance agreements Jane Cavanagh and Bill Ennis retained the right to exercise their share options that had already vested prior to 16 July
2008, subject to their original exercise prices, vesting dates and performance conditions.
†
Share options are no longer granted to non-executive directors. Existing options granted in 2001 to Nigel Wayne expired on 18 July 2008. Options granted to Tim Ryan in
2001 will be exercised or will lapse no later than October 2008.
Performance conditions applying to all the above share option awards require the Company’s share price to have outperformed the FTSE Media Index over the period from
the date of grant to exercise.
Information relating to directors’ remuneration in sections 8 and 9 in tabular form has been audited and an opinion in that regard
forms part of the auditors’ report on page 35.
10. Share price
The closing market price of the Company’s ordinary shares on 30 June 2008 was 43p and the range during the period was 32p to 521p.
11. AGM and documents available for inspection
In accordance with statutory requirements, an ordinary resolution to approve this remuneration report will be proposed at the Company’s AGM.
The directors’ service contracts and letters of appointment, together with the statutory register of directors’ interests (containing full
details of directors’ shareholdings and other interests), are available for inspection by shareholders at the Company’s registered office
during normal business hours and at the AGM.
On behalf of the Board,
Nigel Wayne
Chairman – Remuneration Committee
26 September 2008 Accounts
Report of the independent auditors
to the shareholders of SCi Entertainment Group Plc
We have audited the Consolidated and parent company financial
statements (the “financial statements”) of SCi Entertainment
Group Plc for the year ended 30 June 2008 which comprise the
consolidated income statement, the consolidated statement of
changes in equity, the consolidated and parent Company balance
sheets, the consolidated cash flow statement and the related
notes. These financial statements have been prepared under the
accounting policies set out therein. We have also audited the
information in the directors’ remuneration report that is described
as having been audited.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the annual report and
the consolidated financial statements in accordance with
applicable law and International Financial Reporting Standards
(“IFRSs”) as adopted by the European Union, and for preparing
the parent company financial statements and the directors’
remuneration report in accordance with applicable law and United
Kingdom Accounting Standards (United Kingdom Generally
Accepted Accounting Practice) 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 and
International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial
statements give a true and fair view and whether the financial
statements and the part of the directors’ remuneration report to
be audited have been properly prepared in accordance with the
Companies Act 1985 and whether, in addition, the consolidated
financial statements have been properly prepared in accordance
with Article 4 of the IAS Regulation. Additionally, we report to you
whether, the information given in the directors’ report is consistent
with those financial statements. We also report to you if, in our
opinion, the Company has not kept proper accounting records, if
we have not received all the information and explanations we
require for our audit, or if information specified by law regarding
directors’ remuneration and other transactions is not disclosed. 
We review whether the corporate governance statement
reflects the Company’s compliance with the nine provisions of
the 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 other information contained in the annual report and
consider whether it is consistent with the audited financial
statements. The other information comprises only the chairman’s
statement, chief executive’s statement, the financial review, the
directors’ biographies, the directors’ report, the corporate
governance statement, the corporate responsibility statement 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.
Our report has been prepared pursuant to the requirements of
the Companies Act 1985 and for no other purpose. No person is
entitled to rely on this report unless such a person is a person
entitled to rely upon this report by virtue of and for the purpose of
the Companies Act 1985 or has been expressly authorised to do
so by our prior written consent. Save as above, we do not accept
responsibility for this report to any other person or for any other
purpose and we hereby expressly disclaim any and all such liability.
Basis of audit opinion
We conducted our audit in accordance with International
Standards on Auditing (UK and Ireland) issued by the Auditing
Practices Board. An audit includes examination, on a test basis, of
evidence relevant to the amounts and disclosures in the financial
statements and the part of the directors’ remuneration report to
be audited. It also includes an assessment of the significant
estimates and judgments made by the directors in the
preparation of the financial statements, and of whether the
accounting policies are appropriate to the Group’s and Company’s
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the
information and explanations which we considered necessary in
order to provide us with sufficient evidence to give reasonable
assurance that the financial statements 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 consolidated financial statements give a true and fair view,
in accordance with IFRSs as adopted by the European Union,
of the state of the Group’s affairs as at 30 June 2008 and of
its loss for the year then ended;
> the consolidated financial statements have been properly
prepared in accordance with the Companies Act 1985 and
Article 4 of the IAS Regulation;
> the parent Company financial statements give a true and fair
view, in accordance with United Kingdom Generally Accepted
Accounting Practice, of the state of the parent company's
affairs as at 30 June 2008;
> the parent Company financial statements and the part of the
directors’ remuneration report to be audited have been properly
prepared in accordance with the Companies Act 1985; and
> the information given in the directors’ report is consistent with
the financial statements.
BDO Stoy Hayward LLP
Chartered Accountants and Registered Auditors
London
26 September 2008
SCi Entertainment Group Plc Annual Report and Accounts 2008 35 36 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Consolidated income statement
for the 12 months ended 30 June 2008
12 months to 12 months to
30 June 2008 30 June 2007
Restated
Notes £m £m
Revenue 2 118.9 128.8
Cost of sales (62.8) (74.5)
Gross profit 56.1 54.3
Development costs (104.3) (32.8)
Advertising (17.6) (12.8)
Administrative costs – exceptional 6 (6.2) (0.6)
– other (62.9) (39.5)
Administrative expenses (191.0) (85.7)
Loss from operations 4 (134.9) (31.4)
Finance income 3 0.5 1.2
Finance costs 3 (1.6) (0.5)
Profit on disposal of associate – 0.6
Share of profit in associate 15 – 0.1
Loss before taxation 2 (136.0) (30.0)
Tax (charge)/credit 7 (2.0) 1.7
Loss from continuing operations (138.0) (28.3)
Post tax (loss)/profit on discontinued operations 10 (5.0) 0.2
Loss for the year (143.0) (28.1)
2008 2007
Loss per share Pence Pence
Basic 8 (136.3) (35.3)
Diluted 8 (136.3) (35.3)
Continuing operations
Basic 8 (131.6) (35.5)
Diluted 8 (131.6) (35.5)
The notes on pages 40 to 66 form part of the statutory financial statements. SCi Entertainment Group Plc Annual Report and Accounts 2008 37
Accounts
Consolidated statement of changes in equity
for the 12 months ended 30 June 2008
The movements on each reserve are shown below:
Attributable to equity holders of the parent Company
Foreign Share- Employee
currency based benefit
Share Share Merger Capital translation comp- trust share Retained Minority Total
capital premium reserve reserve reserve ensation reserve profit Total interests equity
£m £m £m £m £m £m £m £m £m £m £m
1 July 2006 3.8 74.6 81.3 6.3 0.5 4.7 (0.9) 14.9 185.2 1.6 186.8
Loss for the year – – – – – – – (28.1) (28.1) – (28.1)
Charged to equity
New shares issued 0.5 46.6 – – – – – – 47.1 – 47.1
Share issue costs – (0.9) – – – – – – (0.9) – (0.9)
Share-based
compensation – – – – – 2.4 – – 2.4 – 2.4
Purchase of minority
interest in Proein SL – – – – – – – – – (1.6) (1.6)
Share-based
compensation moved
to liabilities* – – – – – (2.0) – – (2.0) – (2.0)
Foreign exchange – – – – (1.1) – – – (1.1) – (1.1)
Total charged to
equity 0.5 45.7 – – (1.1) 0.4 – – 45.5 (1.6) 43.9
Total income and
expense for the
period 0.5 45.7 – – (1.1) 0.4 – (28.1) 17.4 (1.6) 15.8
30 June 2007 4.3 120.3 81.3 6.3 (0.6) 5.1 (0.9) (13.2) 202.6 – 202.6
Loss for the year – – – – – – – (143.0) (143.0) – (143.0)
Charged to equity
New shares issued 8.6 52.7 – – – – – – 61.3 – 61.3
Share issue costs – (3.8) – – – – – – (3.8) – (3.8)
Share-based
compensation – – – – – 1.4 – – 1.4 – 1.4
Foreign exchange – – – – 1.8 – – – 1.8 – 1.8
Total charged to
equity 8.6 48.9 – – 1.8 1.4 – – 60.7 – 60.7
Total income and
expense for the period 8.6 48.9 – – 1.8 1.4 – (143.0) (82.3) – (82.3)
30 June 2008 12.9 169.2 81.3 6.3 1.2 6.5 (0.9) (156.2) 120.3 – 120.3
* Transfer to liabilities of amounts in respect of cash settled overseas staff equity schemes previously classified within reserves. 
The notes on page 40 to 66 form part of these financial statements. 38 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Consolidated balance sheet
at 30 June 2008
30 June 2008 30 June 2007
Restated
Notes £m £m
Non-current assets
Property, plant and equipment 11 7.4 6.5
Goodwill 12 2.0 2.7
Other intangible assets 13 75.4 102.7
Capitalised development costs 14 49.7 81.8
Investment in associates 15 0.2 0.6
Deferred tax assets 19 – 0.1
134.7 194.4
Current assets
Inventory 16 3.5 7.2
Trade and other receivables 17 30.9 41.3
Cash and cash equivalents 25.9 31.4
Assets classified as held for sale 10 5.5 –
65.8 79.9
Total assets 2 200.5 274.3
Non-current liabilities
Deferred consideration 18 1.4 4.1
Deferred tax liabilities 19 12.2 13.2
13.6 17.3
Current liabilities
Trade and other payables 20 28.4 30.0
Tax liabilities 21 6.9 4.1
Accruals and deferred income 10.9 10.1
Provisions 22 17.8 10.2
Liabilities held for sale 10 2.6 –
66.6 54.4
Total liabilities 2 80.2 71.7
Equity
Share capital 23 12.9 4.3
Share premium 25 169.2 120.3
Merger reserve 25 81.3 81.3
Capital reserve 25 6.3 6.3
Foreign currency translation reserve25 1.2 (0.6)
Share-based compensation 25 6.5 5.1
Employee benefit trust sharereserve 25 (0.9) (0.9)
Retained profits 25 (156.2) (13.2)
Equity attributable to equity holders of the parent Company 120.3 202.6
Total liabilities and equities 200.5 274.3
The notes on page 40 to 66 form part of these financial statements.
These financial statements were approved by the Board of Directors and authorised for issue on 26 September 2008 and signed on its behalf by:
Phil Rogers Robert Brent
Director Director SCi Entertainment Group Plc Annual Report and Accounts 2008 39
Accounts
Consolidated cash flow statement
for the 12 months ended 30 June 2008
12 months to 12 months to
30 June 2008 30 June 2007
Restated
Notes £m £m
Operating activities
Loss from continuing operations (136.0) (30.0)
Loss from discontinued operations 10 (5.6) –
Share-based compensation 0.1 2.2
Depreciation on plant, property and equipment and software amortisation charged to
the income statement 3.6 1.6
Amortisation of brands and technology 11.6 11.0
Impairment of brands and technology 16.3 –
Impairment of goodwill 0.2 2.7
Financing income (0.5) (1.2)
Financing costs 1.6 0.5
Net profit made by associates – (0.1)
Profit on disposal of an associate – (0.6)
Loss on measurement of discontinued operations to fair value less costs to sell 10 3.5 –
(105.2) (13.9)
Decrease in trade and other receivables 7.9 14.4
Decrease/(increase) in inventories 2.2 (2.6)
Release of capitalised development costs 101.9 32.8
Increase/(decrease) in trade and other payables, accruals, deferred income and provisions 10.4 (4.9)
Cash generated from operations 17.2 25.8
Income taxes repaid/(paid) 0.2 (2.1)
Cash flows from operating activities 17.4 23.7
Investing activities
Payment for subsidiary undertakings (1.0) (3.9)
Cash acquired with subsidiaries – 0.9
Acquisition expenses – (0.2)
Purchase of property, plant and equipment and intangible software (5.4) (5.5)
Sale of fixed assets 0.2 –
Interest received 0.5 1.2
Expenditure on capitalised development costs (69.8) (68.5)
Sale of associated undertakings 0.4 0.8
Net cash used in investing activities (75.1) (75.2)
Financing activities
Proceeds from issue of share capital 60.2 47.1
Share issue expenses (3.8) (0.9)
Interest paid (1.6) (0.5)
Net cash generated by financing activities 54.8 45.7
Net decrease in net cash and cash equivalents (2.9) (5.8)
Cash and cash equivalents at beginning of period 31.4 37.2
Cash and cash equivalents at end of period 28.5 31.4
Less cash classified as held for sale 10 (2.6) –
Reported cash and cash equivalents at end of period 25.9 31.4
The notes on page 40 to 66 form part of these financial statements. 40 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the consolidated accounts
for the 12 months ended 30 June 2008
1. Accounting policies
The principal accounting policies of the Group are summarised
below. 
These financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRS and IFRIC
interpretations) issued by the International Accounting Standards
Board (“IASB”), as endorsed by the EU, and, with those parts of
the Companies Act 1985 applicable to preparing financial
statements under IFRS.
SCi Entertainment Group plc is domiciled in England, where it
is incorporated as a public limited company. Its registered office
is Wimbledon Bridge House, 1 Hartfield Road, Wimbledon,
London, SW19 3RU. The Group is a developer and publisher of
computer and console based entertainment. SCi Entertainment
Group Plc is the holding company of the Group and the ultimate
parent company.
Basis of consolidation
The consolidated financial statements consolidate the financial
statements of SCi Entertainment Group Plc and its subsidiary
undertakings drawn up to 30 June 2008.
The results of subsidiaries acquired are consolidated for the
period from the date on which control passed. Acquisitions are
accounted for under the acquisition method with goodwill,
representing any excess of the fair value of the consideration
given over the fair value of the identifiable assets and liabilities
acquired.
Intercompany transactions, balances and unrealised gains on
transactions between Group companies are eliminated. 
Accounting periods
The accounting reference date of the Group is 30 June. The
current year’s results are for the period from 7 July 2007 to
30 June 2008. The comparative years results are for the year
from 1 July 2006 to 6 July 2007.
Restatement of comparatives
The income statement and cash flow comparatives have been
restated to separately disclose the results of discontinued
operations as required by IFRS 5 (See note 10). The balance
sheet comparative has been restated to reclassify £2.1 million of
the deferred consideration as a current liability.
Property, plant and equipment
Property plant and equipment are stated at cost, net of
depreciation and provision for impairment. Depreciation is
provided on all property plant and equipment, at rates calculated
to write off the cost less estimated residual value, of each asset
on a straight-line basis over its expected useful life, as follows:
> Leasehold improvements: over the life of the lease
> Equipment and vehicles: 3 to 5 years
Goodwill
All Company business combinations are recorded using the
acquisition method. Goodwill results from the acquisition of
subsidiaries, associates and joint entities and corresponds to the
difference between the acquisition cost and the fair value of the
assets, liabilities and contingent liabilities identified at the date of
acquisition.
Positive goodwill is not amortised but is subject to annual
impairment tests at the end of each accounting period. The
recoverable value of goodwill is then estimated on the basis of
the higher of market value or value in use. Value in use is defined
as the present value relating to the cash flow generating units
with which the goodwill is associated. If the recoverable amount
is less than the book value an impairment is recorded. 
Intangible assets
Intangible assets acquired by the Group are recorded at their
valuation (brands and technology) or cost (software) less the total
of amortisation and impairment. In accordance with IAS 38
“Intangible assets”, only elements whose cost can be determined
reliably and for which it is probable that future benefits exist are
recognised.
Intangible assets are amortised over the expected period of
use:
> Brands 15 years
> Technology 8 years
> Software 3 years
Brands and technology relates to trademarks, characters,
images, engines and designs acquired by the Group that were
identifiable and measurable. These assets are amortised over a
period of 15 and 8 years respectively based on the useful
economic lives, applicable to the individual characteristics of the
respective asset. At the close of each fiscal year these assets are
also subject to impairment tests whereby the recoverable value of
brands and technology is then estimated on the basis of either
market value or value in use. Value in use is defined as the
present value relating to the cash flow with which the assets are
associated.
Software relates to applications not required to run hardware
and are amortised over three years.
Capitalised development costs
Capitalised development costs correspond to the costs incurred
in the development of new games and core technology to the
extent that the Group has determined that:
> the game or core technology is technically and commercially
feasible;
> the game or core technology is clearly defined and related
expenditure is separately identifiable;
> current and future costs are expected to be exceeded by
future earnings;
> the Group has the intention and ability to complete the game
or core technology; and
> adequate resources exist for the product to be completed. Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
Game costs are amortised over a period that, based on
historical experience, prudently simulates the expected flow of
revenues from the game, in the period starting from the month of
release.
Core technology costs are amortised on a straight-line basis
over the estimated useful life of the technology, commencing
from the point at which the technology is in a state from which it
can be usefully employed on multiple projects in the studio of
creation and other locations.
At the close of each fiscal year game and engine costs are
reviewed by project for any loss of value compared to the net
book value at that time. Where the expected future contribution of
a game does not exceed the total expected costs to complete
the development an impairment provision is made.
Associated undertakings
Associated undertakings are undertakings in which the Group
holds a long-term interest and over which it has the power to
exercise significant influence but not control. The Group’s share
of profits less losses from associated undertakings is included in
the consolidated income statement on the equity accounting
basis and its interest in their net assets included in investments
in the balance sheet.
Inventory
Inventory comprise finished goods for resale, and are stated at
the lower of cost and net realisable value. Cost is calculated as
cost of materials. Net realisable value is based on estimated
selling price, less further disposal costs. 
Assets and liabilities classified as held for sale 
Non-current assets and disposal groups are classified as held for
sale when:
> they are available for immediate sale;
> management is committed to a plan to sell;
> it is unlikely that significant changes to the plan will be made
or that the plan will be withdrawn;
> an active programme to locate a buyer has been initiated;
> the asset or disposal group is being marketed at a reasonable
price in relation to its fair value; and
> a sale is expected to complete within 12 months from the
date of classification.
Non-current assets and disposal groups classified as held for
sale are measured at the lower of:
> their carrying amount immediately prior to being classified as
held for sale in accordance with the group’s accounting policy;
and
> fair value less costs to sell.
Following their classification as held for sale, non-current
assets (including those in a disposal group) are not depreciated.
The results of operations disposed during the year are included in
the consolidated income statement up to the date of disposal.
Provisions
Provisions are recognised for liabilities of uncertain timing or
amount that have arisen as a result of past transactions and are
discounted at a pre-tax rate reflecting current market assessments
of the time value of money and the risks specific to the liability.
Taxation
Corporation tax payable is provided on taxable profits at rates
prevailing in the countries where the company carries out its
business.
Deferred taxation
Deferred income tax is calculated using the asset-liability method
of tax allocation for all temporary differences arising between the
book value of assets and liabilities and their tax bases, except for
differences arising on the initial recognition of goodwill. 
Deferred tax assets and liabilities are recognised where the
carrying amount of an asset or liability in the balance
sheet differs to its tax base, except for differences arising on:
> the initial recognition of goodwill;
> goodwill for which amortisation is not tax deductible;
> the initial recognition of an asset or liability in a transaction
which is not a business combination and at the time of the
transaction affects neither accounting or taxable profit; and
> investments in subsidiaries where the Group is able to control
the timing of the reversal of the difference and it is probable
that the difference will not reverse in the foreseeable future.
Foreign currency
Transactions entered into by Group entities in a currency other
than the currency of the primary economic environment in which
it operates (the “functional currency”) are recorded at the rates
ruling when the transactions occur. Foreign currency monetary
assets and liabilities are translated at the rates ruling at the
balance sheet date. Exchange differences arising on the
retranslation of unsettled monetary assets and liabilities are
recognised immediately in the income statement, except for
foreign currency borrowings qualifying as a hedge of a net
investment in a foreign operation, in which case exchange
differences are recognised in a separate component of equity. 
On consolidation, the results of overseas operations are
translated into sterling at rates approximating to those ruling
when the transactions took place. All assets and liabilities of
overseas operations, including goodwill arising on the acquisition
of those operations, are translated at the rate ruling at the
balance sheet date. Exchange differences arising on retranslating
the opening net assets and the results of overseas operations
from the opening and average rates respectively to the closing
rate are recognised directly in equity (the “foreign currency
translation reserve”). 
SCi Entertainment Group Plc Annual Report and Accounts 2008 41
1. Accounting policies continued 42 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
Exchange differences recognised in the income statement of
Group entities’ separate financial statements on the translation of
long-term monetary items forming part of the Group’s net
investment in the overseas operation concerned are reclassified
to the foreign exchange reserve on consolidation.
On disposal of a foreign operation, the cumulative exchange
differences recognised in the foreign exchange reserve relating to
that operation up to the date of disposal are transferred to the
income statement as part of the profit or loss on disposal.
Completion bonding
Completion bonding provides financial assurance that a product will
be developed on time, on budget and in accordance with agreed
specifications. In the event of delay or failure, the cost of the project
will be guaranteed by the bond rather than borne by the Group.
Development costs covered by a completion bond are treated
in the same manner as all other development costs and are
capitalised in the balance sheet until time of release. If a
completion bond is utilised then these costs will be removed
from the balance sheet as the project is passed over to the
completion bond company and no costs associated with this
development are recognised in the income statement.
The cost of holding the bond is expensed over the period
insured.
Leases
Where substantially all of the risks and rewards incidental to
ownership of a leased asset have been transferred to the Group
(a “finance lease”), the asset is treated as if it had been
purchased outright. The amount initially recognised as an asset is
the present value of the minimum lease payments payable over
the term of the lease. The corresponding lease commitment is
shown as a liability. Lease payments are analysed between
capital and interest. The interest element is charged to the
income statement over the period of the lease and is calculated
so that it represents a constant proportion of the lease liability.
The capital element reduces the balances owed to the lessor.
Where substantially all of risks and rewards incidental to
ownership are retained by the lessor (an “operating lease”), the
total rentals payable under the lease are charged to the income
statement on a straight-line basis over the lease term.
The land and buildings elements of property leases are
considered separately for the purpose of lease classification.
Employee Benefit Trust (“EBT”) share reserve
The cost of the Company’s shares held by the EBT is deducted
from shareholders’ funds in the Group balance sheet. Any gain or
loss by the EBT on disposal of the shares it holds is also
recognised directly in shareholders’ funds to the extent that it
exceeds amounts due from the EBT in relation to the set up of
the share trust. Other assets and liabilities of the EBT (including
borrowings) are recognised as assets and liabilities of the Group.
Any shares held by the EBT are treated as cancelled for the
purpose of calculating earnings per share. 
Revenue recognition
Revenue comprises: (a) sales of games to retailers and external
distributors at invoiced and accrued amounts less value added
tax and provision against any subsequent returns. Turnover from
sales of games is recognised at the point at which the game is
delivered. The Group makes provision against any subsequent
returns or price protection; (b) royalty payments received or
accrued from external distributors under licence of the right to
distribute games in certain territories. Where advance payments
against royalties are received under licence, in so far as the
Group’s obligations have been fulfilled, such advances are
recognised at the point at which they become non-returnable;
and (c) royalty payments received or accrued from third parties
under licence of the right to exploit the Group’s intellectual
property on other media. These are recognised on an accruals
basis in accordance with the substance of the relevant contracts. 
Long-term incentive plan for executive directors
Future payments under the Group’s long-term incentive plan are
estimated and charged to the consolidated income statement
account over the remaining period to which they relate. A charge
is made when it is probable that an outflow of resources
embodying economic benefits will be required to settle the
obligation and when the future payments can be reliably
estimated.
Pensions
For defined contribution schemes, the amount charged to the
consolidated income statement in respect of pension costs is the
contributions payable in the year. Differences between
contributions payable in the year and contributions actually paid
are shown as either accruals or prepayments in the balance
sheet.
Share-based compensation
Where share options are awarded to employees, the fair value of
the options at the date of grant is charged to the income
statement over the vesting period. Non-market vesting conditions
are taken into account by adjusting the number of equity
instruments expected to vest at each balance sheet date so that,
ultimately, the cumulative amount recognised over the vesting
period is based on the number of options that eventually vest.
Market vesting conditions are factored into the fair value of the
options granted. As long as all other vesting conditions are
satisfied, a charge is made irrespective of whether the market
vesting conditions are satisfied. The cumulative expense is not
adjusted for failure to achieve a market vesting condition.
Where the terms and conditions of options are modified
before they vest, the increase in the fair value of the options,
measured immediately before and after the modification, is also
charged to the income statement over the remaining vesting
period.
1. Accounting policies continued Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
Where equity instruments are granted to persons other than
employees, the income statement is charged with the fair value
of goods and services received.
The Group also operates a phantom share option scheme. An
option pricing model is used to measure the Group’s liability at
each balance sheet date, taking into account the terms and
conditions on which the bonus is awarded and the extent to
which employees have rendered service. Movements in the
liability (other than cash payments) are recognised in the income
statement.
Exceptional items
Exceptional items are those which are separately identified by
virtue of their size or incidence to allow a full understanding of
the underlying performance of the Group.
Financial assets
The Group classifies its financial assets into one of the following
categories: ‘fair value through profit or loss’ and ‘loans and
receivables’, depending on the purpose for which the asset was
acquired. The Group does not hold any ‘held-to-maturity’
investments or ‘available-for-sale’ financial assets. The Group’s
accounting policy for each category is as follows:
Fair value through profit or loss: This category comprises only in-
the-money derivatives. They are carried in the balance sheet at
fair value with changes in fair value recognised in the income
statement. The Group does not have any assets held for trading
nor does it voluntarily classify any financial assets as being at fair
value through profit or loss.
Loans and receivables: These assets are non-derivative financial
assets with fixed or determinable payments that are not quoted
in an active market. They arise principally through the provision of
goods and services to customers (trade debtors), but also
incorporate other types of contractual monetary asset. They are
carried at cost less any provision for impairment. 
Impairment provisions are recognised when there is objective
evidence (such as significant financial difficulties on the part of
the counterparty or default or significant delay in payment) that
the Group will be unable to collect all of the amounts due under
the terms receivable, the amount of such a provision being the
difference between the net carrying amount and the present
value of the future expected cash flows associated with the
impaired receivable. For trade receivables, such provisions are
recorded in a separate allowance account with the loss being
recognised within administrative expenses in the income
statement. On confirmation that the trade receivable will not be
collectable, the gross carrying value of the asset is written off
against the associated provision.
Financial liabilities
The Group classifies its financial liabilities into one of two
categories, depending on the purpose for which the asset was
acquired. The Group’s accounting policy for each category is as
follows:
Fair value through profit or loss: This category comprises only
out-of-the-money derivatives. They are carried in the balance
sheet at fair value with changes in fair value recognised in the
income statement.
Other financial liabilities: Other financial liabilities include the
following items:
> Trade payables and other short-term monetary liabilities, which
are initially recognised at fair value and subsequently carried
at amortised cost using the effective interest method.
> Bank borrowings are initially recognised at fair value. Unless
stated otherwise this equates to the amount advanced net of
any transaction costs directly attributable to the issue of the
instrument. Such interest bearing liabilities are subsequently
measured at amortised cost using the effective interest rate
method, which ensures that any interest expense over the
period to repayment is at a constant rate on the balance of
the liability carried in the balance sheet. “Interest expense” in
this context includes initial transaction costs and premiums
payable on redemption, as well as any interest payable while
the liability is outstanding.
Equity instruments
An equity instrument is any contract that evidences a residual
interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by the Group are recorded at
the proceeds received, net of direct issue costs.
Capital risk management
The Group manages its capital to ensure that entities within the
Group will be able to continue as a going concern whilst
optimising the debt and equity balance. In managing its capital,
the Group’s primary objective is to ensure its ability to provide a
return for its equity shareholders through capital growth. In order
to achieve this objective, the Group seeks to maintain a gearing
ratio that balances risks and returns at an acceptable level and
also to maintain a sufficient funding base to enable the Group to
meet its working capital and strategic investment needs. In
making decisions to adjust its capital structure to achieve these
aims the Group considers not only its short-term position but also
its long-term operational and strategic objectives.
SCi Entertainment Group Plc Annual Report and Accounts 2008 43
1. Accounting policies continued 44 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
Critical accounting estimates and judgements
The Group makes estimates and assumptions regarding the
future. Estimates and judgements are continually evaluated
based on historical experience and other factors, including
expectations of future events that are believed to be reasonable
under the circumstances. In the future, actual experience may
deviate from these estimates and assumptions. The estimates
and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within
the next financial year are discussed below.
(a) Revenue recognition 
The Group recognises revenue of sales of games to retailers and
external distributors. Based on past experience with similar sales,
the Group makes provision against any subsequent returns or
price protection. The Group therefore recognises revenue on
these transactions with corresponding provision against the
revenue for estimate of returns and price protection. Actual rates
of returns and price protection may vary. 
(b) Impairment of goodwill and other intangible assets
The Group is required to test goodwill, on an annual basis for
impairment and for other intangible assets where there is an
indication of an impairment. The recoverable amount is
determined based on value in use calculations. The use of this
method requires the estimation of future cash flows and the
choice of a discount rate in order to calculate the present value
of the cash flows. Actual outcomes may vary.
(c) Useful lives of intangible assets and property, plant and
equipment
Intangible assets and property, plant and equipment are
amortised or depreciated over their useful lives. Useful lives are
based on the management’s estimates of the period that the
assets will generate revenue, which are periodically reviewed for
continued appropriateness. Due to the long life of these assets,
changes to the estimates used can result in significant variations
in the carrying value.
(d) Capitalised development costs
The amortisation period of capitalised development costs is
determined by reference to the expected flow of revenues from a
game based on historical experience. Changes to the estimated
flow of revenues could result in significant variations in the
carrying value. Furthermore, the Group reviews at the close of
each fiscal year the capitalised development costs for each game
for any loss of value compared to the net book value at that time,
based on the expected future contribution less the total expected
costs. Significant estimates and judgement are required to
determine costs to complete, demand and selling prices and
factors that could impact these include competitor actions,
supplier prices and economic trends. If actual losses differ from
management’s estimates the results for the year would have
improved/declined depending upon whether the actual results
were better/worse, respectively, than expected. 
(e) Income taxes
The Group is subject to income tax in several jurisdictions and
significant judgement is required in determining the provision for
income taxes. During the ordinary course of business, there are
many transactions and calculations for which the ultimate tax
determination is uncertain. As a result, the Company recognises
tax liabilities based on estimates of whether additional taxes and
interest will be due. These tax liabilities are recognised when,
despite the Company’s belief that its tax return positions are
supportable, the Company believes that certain positions are
likely to be challenged and may not be fully sustained upon
review by tax authorities. The Company believes that its accruals
for tax liabilities are adequate for all open audit years based on
its assessment of many factors including past experience and
interpretations of tax law. This assessment relies on estimates
and assumptions and may involve a series of complex judgments
about future events. To the extent that the final tax outcome of
these matters is different than the amounts recorded, such
differences will impact income tax expense in the period in which
such determination is made. 
(f) Share-based payment
The Group has two types of share-based remuneration schemes
for employees. Employee services received, and the
corresponding increase in equity, are measured by reference to
the fair value of the equity instruments at the date of grant,
excluding the impact of any non-market vesting conditions. Fair
value of the share options is estimated by using a binomial
valuation model, on the date of grant based on certain
assumptions. Those assumptions are described in note 24 and
include, among others, risk free interest rate, expected volatility
and expected life of the options.
1. Accounting policies continued Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
(g) Legal proceedings
In accordance with IFRS the Group only recognises a provision
where there is a present obligation from a past event, a transfer
of economic benefits is probable and the amount of costs of the
transfer can be estimated reliably. In instances where the criteria
are not met, a contingent liability may be disclosed in the notes
to the financial statements. Realisation of any contingent liabilities
not currently recognised or disclosed in the financial statements
could have a material effect on the Group’s financial position.
Application of these accounting principles to legal cases requires
the Group’s management to make determinations about various
factual and legal matters beyond its control. The Group reviews
outstanding legal cases following developments in the legal
proceedings and at each balance sheet date, in order to assess
the need for provisions in its financial statements. Among the
factors considered in making decisions on provisions are the
nature of litigation, claim or assessment, the legal process and
potential level of damages in the jurisdiction in which the
litigation, claim or assessment has been brought, the progress of
the case (including the progress after the date of the financial
statements but before those statements are issued), the opinions
or views of legal advisers, experience on similar cases and any
decision of the Group’s management as to how it will respond to
the litigation, claim or assessment.
Adoption of new and revised standards 
Standards and Interpretations effective in the current period 
In the current year, the Group has adopted IFRS 7 ‘Financial
Instruments: Disclosures’ which is effective for annual reporting
periods beginning on or after 1 January 2007, and the
consequential amendments to IAS 1 ‘Presentation of Financial
Statements’. The impact of the adoption of IFRS 7 and the
changes to IAS 1 has been to expand the disclosures provided in
these financial statements regarding the Group’s financial
instruments and management of capital (see note 17). There has
been no effect on the results, cash flows or financial position of
the Group or the Company.
Five interpretations issued by the International Financial
Reporting Interpretations Committee are effective for the current
period. These are IFRIC 7 ‘Applying the Restatement Approach
under IAS 29 Financial Reporting in Hyperinflationary Economies’;
IFRIC 8 ‘Scope of IFRS 2’; IFRIC 9 ‘Reassessment of Embedded
Derivatives’; IFRIC 10 ‘Interim Reporting and Impairment’; and
IFRIC 11 ‘IFRS 2 Group and Treasury Share Transactions’. The
adoption of these Interpretations has not led to any changes in
the Group’s accounting policies.
Standards and Interpretations in issue not yet adopted
The International Accounting Standards Board and the
International Financial Reporting Interpretations Committee have
issued the following standards and interpretations to be applied
to financial statements with periods commencing on or after the
following dates:
International Accounting Standards (IAS/IFRS) Effective date
IAS 1* Presentation of financial statements
amendment 01/01/2009
IFRS 8 Operating Segments 01/01/2009
IAS 23* Borrowing costs amendment 01/01/2009
IAS 27* Consolidated and Separate Financial
Statements amendment 01/01/2009
IAS 32* Financial Instruments: Presentation
amendment 01/01/2009
IFRS 2* Share-based payments amendment 01/01/2009
IFRS 3* Business Combinations amendment and
complementary amendments to IAS 27
Consolidated and Separate Financial Statements 01/07/2009
International Financial Reporting Interpretations Committee (IFRIC) Effective date
IFRIC 12* Service Concession Arrangements 01/01/2008
IFRIC 13* Customer Loyalty Programmes 01/07/2008
IFRIC 14, IAS 19* The Limit on a Defined Benefit
Asset Minimum Funding Requirements and
their Interaction 01/01/2008
IFRIC 15* Agreements for the Construction of
Real Estate 01/01/2009
IFRIC 16* Hedges of a Net Investment in a
Foreign Operation 01/10/2008
* These standards and interpretations are not endorsed by the EU
at present.
The directors do not anticipate that the adoption of these
standards and interpretations will have a material impact on the
Group’s financial statements in the period of initial application.
SCi Entertainment Group Plc Annual Report and Accounts 2008 45
1. Accounting policies continued 46 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
2. Segmental analysis
12 months to 12 months to
30 June 2008 30 June 2007
Restated
Primary Segment: Geographic £m £m
Revenue by destination
United Kingdom 21.8 28.2
Europe 48.2 41.1
United States of America 40.2 49.1
Rest of World 8.7 10.4
Total revenue 118.9 128.8
Loss before tax by destination
United Kingdom* (129.4) (34.3)
Europe (3.8) (0.4)
United States of America (2.6) 3.7
Rest of World (0.2) 1.0
Loss before tax (136.0) (30.0)
* Central costs have been included within the United Kingdom results. 
Net assets/liabilities
Depreciation and 
As at 30 June 2008
amortisation
Assets Liabilities Net assets of software Capital additions*
Geographical segment £m £m £m £m £m
United Kingdom 152.5 (48.5) 104.0 1.5 1.2
Europe 28.2 (16.4) 11.8 0.9 1.9 
United States of America 17.2 (15.1) 2.1 0.9 0.4
Rest of World 2.6 (0.2) 2.4 0.3 1.9
Total 200.5 (80.2) 120.3 3.6 5.4
As at 30 June 2007
Geographical segment
United Kingdom 220.4 (49.7) 170.7 1.4 2.2
Europe 34.3 (11.5) 22.8 0.6 0.9
United States of America 19.4 (10.5) 8.9 0.2 2.3
Rest of World 0.2 – 0.2 – –
Total 274.3 (71.7) 202.6 2.2 5.4
* Capital additions include additions to both plant, property and equipment and to software.  SCi Entertainment Group Plc Annual Report and Accounts 2008 47
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
2. Segmental analysis continued
12 months to 12 months to
30 June 2008 30 June 2007
Restated
Secondary segment: Business segments £m £m
Revenue by business segment
Publishing 71.4 67.3
Distribution 42.2 53.7
Licensing 5.3 7.8
Total revenue 118.9 128.8
Loss before tax by business segment
Publishing (125.5) (19.5)
Distribution (8.2) (13.8)
Licensing (2.3) 3.3
Loss before tax (136.0) (30.0)
Net assets/(liabilities)
Depreciation and 
As at 30 June 2008
amortisation
Assets Liabilities Net assets of software Capital additions*
Business segment £m £m £m £m £m
Publishing 158.1 (33.6) 124.4 2.2 3.3
Distribution 37.9 (39.2) (1.2) 1.3 1.9
Licensing 4.5 (7.4) (2.9) 0.1 0.2
Total 200.5 (80.2) 120.3 3.6 5.4
As at 30 June 2007
Business segment
Publishing 236.9 (50.3) 186.6 1.2 3.0
Distribution 30.2 (21.4) 8.8 0.8 1.9
Licensing 7.2 – 7.2 0.2 0.5
Total 274.3 (71.7) 202.6 2.2 5.4
* Capital additions include additions to both plant, property and equipment and to software.  48 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
12 months to 12 months to
30 June 2008 30 June 2007
3. Net finance charges £m £m
Finance income
Other interest receivable 0.5 1.2
Finance expense
Bank loans and overdrafts and fees (1.6) (0.5)
Net finance charges (1.1) 0.7
4. Loss from operations
12 months to 12 months to
30 June 2008 30 June 2007
This has been arrived at after charging/(crediting): £m £m
Depreciation of property, plant equipment and amortisation of software 3.6 1.6
Amortisation of brands and technology 11.6 11.0
Impairment of brands and technology 16.3 –
Impairment of goodwill 0.2 2.7
Share-based compensation – cash settled equity incentive schemes (1.3) (0.2)
Share-based compensation – other 1.4 2.4
Foreign exchange loss 0.3 0.2
Operating lease expense
– plant and machinery 0.3 0.2
– property 3.0 3.1
During the year, the Group (including its overseas subsidiaries) obtained the following services from the Group’s auditor and
associated firms:
12 months to 12 months to
30 June 2008 30 June 2007
This has been arrived at after charging: £m £m
Audit services
Fees payable to the Company’s audit of the parent Company and consolidated annual accounts 0.2 0.4
Non-audit services
Fees payable to the Company’s auditor and associated firms for other services:
– the audit of the Company’s subsidiaries pursuant to legislation 0.1 0.1
– other services pursuant to legislation 0.1 –
– other taxation services 0.1 0.1
– other services relating to corporate finance transactions 0.3 0.2
Total auditor remuneration 0.8 0.8
Of the non-audit services detailed above, fees for other services pursuant to legislation relate to the review of the Group’s interim results.
Other taxation services relate to compliance services provided in respect of the Group’s US subsidiary. Other services relating to
corporate finance transactions relate to professional services in respect of the refinancing during the year and discontinued offer
discussions.
All work for non-audit services is allocated under a competitive tender process. A description of the work of the audit committee is
set out in the corporate governance statement which includes an explanation on how auditor objectivity and independence is
safeguarded when non-audit work is provided by the auditors. SCi Entertainment Group Plc Annual Report and Accounts 2008 49
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
5. Staff costs and numbers
12 months to 12 months to
30 June 2008 30 June 2007
The average monthly number of employees (including executive directors) was: Number Number
Sales, marketing and administration 200 222
Development 880 645
1,080 867
At 30 June 2008 the Group had 163 (2007: 228) employees in sales, marketing and administration and 649 (2007: 743) in
development (excluding 138 employees in respect of operations that have been classified as discontinued or for where a provision has
been made for their redundancy).
12 months to 12 months to
30 June 2008 30 June 2007
Aggregate remuneration (including directors) comprised: £m £m
Wages and salaries 40.2 32.4
Social security costs 3.5 3.2
Share-based compensation (see note 24) 1.4 2.4
Cash settled equity incentive schemes (see note 24) (1.3) (0.4)
Other pension costs 1.8 1.2
Redundancy 4.1 –
49.7 38.8
Further disclosures relating to the remuneration of each individual director is included in the remuneration report of which the information
on pages 33 and 34 has been audited. 
12 months to 12 months to
30 June 2008 30 June 2007
Key management remuneration (including directors): £m £m
Wages and salaries 3.5 3.3
Social security costs 0.3 0.3
Share-based compensation (see note 24) 0.6 0.5
Gains on share options – 1.3
Other pension costs 0.3 0.3
4.7 5.7
There are 17 employees (excluding directors) defined as being key management for 2008 (2007: 22). 50 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
12 months to 12 months to
30 June 2008 30 June 2007
6. Exceptional charges £m £m
Exceptional administrative costs
Restructuring costs (6.2) –
Settlement of a trade dispute – (0.6)
(6.2) (0.6)
The Group initiated a strategic review in January 2008 and in February 2008 announced plans to restructure at an estimated cost of
£7 million. At the year end the Group had incurred restructuring costs of £6.2 million. The key components of the restructuring cost are
redundancy costs associated with reducing headcount, relocation of the quality assurance function to Montreal and professional,
consulting and legal fees.
The exceptional costs in the prior period of £0.6 million were incurred on the settlement of a trade dispute. 
During the year to 30 June 2008, the analysis on the income statement of exceptional items has changed. The directors believe this to
be a more appropriate presentation and accordingly the comparative figure has also been changed. This had no affect on the loss or
assets reported. 
12 months to 12 months to
30 June 2008 30 June 2007
Restated
7. Tax on loss on ordinary activities £m £m
Current tax
UK corporation tax at 28% 0.3 0.2
Overseas taxation 2.6 0.2
2.9 0.4
Deferred tax
Origination and reversal of temporary differences (0.9) (2.1)
Taxation charge/(credit) 2.0 (1.7)
The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the UK applied to
profits for the year are as follows: 
12 months to 12 months to
30 June 2008 30 June 2007
Restated
£m £m
Loss on ordinary activities before taxation (136.0) (30.0)
Loss on ordinary activities at standard rate of UK corporation tax rate of 28% (2007: 30%) (38.1) (9.1)
Effects of:
– non-taxable items 1.4 0.2
– other timing differences 4.9 –
– short-term temporary differences – (0.1)
– adjustment to the tax charge in respect of previous year 2.4 (1.4)
– losses not recognised for deferred tax purposes 31.4 6.6
– recognition of losses and other deferred tax assets not previously recognised – 2.0
– overseas tax rates – 0.1
Total tax charge/(credit) for the year 2.0 (1.7) SCi Entertainment Group Plc Annual Report and Accounts 2008 51
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
8. Loss per share
Loss per share has been calculated using the following:
12 months to 30 June 2008 12 months to 30 June 2007
Continuing Discontinued Total Continuing Discontinued Total
£m £m £m £m £m £m
Loss for year
Basic (138.0) (5.0) (143.0) (28.3) 0.2 (28.1)
Diluted (138.0) (5.0) (143.0) (28.3) 0.2 (28.1)
Weighted average number of shares m mm m mm
Basic 104.9 104.9 104.9 79.7 79.7 79.7
Diluted 104.9 104.9 104.9 79.7 79.7 79.7
There is no potential dilution of the loss per ordinary share at 30 June 2008 or 30 June 2007. The total number of options in issue, all of
which are anti-dilutive, is disclosed in note 24.
9. Non-GAAP measures of performance
12 months to 12 months to
30 June 2008 30 June 2007
Adjusted EBITDA loss £m £m
Loss from operations (134.9) (31.4)
Depreciation, amortisation and impairment charged to income statement 31.7 15.3
Operating loss on discontinued operations (2.2) –
Exceptional items (see note 6) 6.2 0.6
Share-based compensation 0.1 2.2
Adjusted EBITDA loss (99.1) (13.3)
In calculating its Adjusted EBITDA the Group includes the results of discontinued operations and adds back exceptional items and
share-based compensation. 52 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
10. Discontinued operations
With effect from 1 July 2008 the Group is selling its Spanish distribution company Proein SL for a consideration of ™3.8 million
(£2.9 million). As the company was available for immediate sale and its sale was highly probable at the balance sheet date its assets
and liabilities have been classified as held for sale. An impairment loss of £3.5 million on the measurement of the disposal group to fair
value less selling costs has been recognised and is included in discontinued operations. The results of the division have been classified
as a discontinued operation as it is considered to be a separate major geographical area of operations. The division was included within
the European geographical segment. 
The results of discontinued operations and the assets and liabilities classified as held for sale are as follows:
12 months to 12 months to
30 June 2008 30 June 2007
Result of discontinued operations £m £m
Revenue 14.8 15.2
Operating expenses (17.0) (15.2)
Operating loss (2.2) –
Finance income 0.1 –
Loss on measurement to fair value less costs to sell (3.5) –
Loss before tax (5.6) –
Tax credit 0.6 0.2
(Loss)/profit after tax (5.0) 0.2
Pence Pence
Basic (loss)/profit per share (4.8) 0.2
Diluted (loss)/profit per share (4.8) 0.2
30 June 2008
Assets and liabilities classified as held for sale £m
Goodwill 0.5
Property, plant and equipment 0.4
Inventory 1.6
Trade and other receivables 3.9
Cash and cash equivalents 2.6
Loss on measurement to fair value less costs to sell (3.5)
Assets classified as held for sale 5.5
Trade and other payables (1.2)
Provisions (1.4)
Liabilities classified as held for sale (2.6)
The cash outflow relating to discontinued operations during the year is £0.1 million. SCi Entertainment Group Plc Annual Report and Accounts 2008 53
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
Equipment,
vehicles
Leasehold and fixtures
improvements and fittings Total
11. Property, plant and equipment £m £m £m
Cost
1 July 2006 0.8 5.4 6.2
Additions 1.2 4.2 5.4
30 June 2007 2.0 9.6 11.6
Depreciation
1 July 2006 0.4 2.6 3.0
Charge for the period 0.2 1.9 2.1
30 June 2007 0.6 4.5 5.1
Net book value
30 June 2007 1.4 5.1 6.5
30 June 2006 0.4 2.8 3.2
Cost
1 July 2007 2.0 9.6 11.6
Additions 1.2 3.8 5.0
Disposals (0.4) (3.0) (3.4)
Transferred to assets classified as held for sale (0.3) (0.6) (0.9)
30 June 2008 2.5 9.8 12.3
Depreciation
1 July 2007 0.6 4.5 5.1
Charge for the period 0.4 3.1 3.5
Disposals (0.3) (2.9) (3.2)
Transferred to assets classified as held for sale (0.1) (0.4) (0.5)
30 June 2008 0.6 4.3 4.9
Net book value
30 June 2008 1.9 5.5 7.4
30 June 2007 1.4 5.1 6.5
There are no assets held under finance lease as at 30 June 2008 or 30 June 2007. 54 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
12. Goodwill Note £m
Cost
1 July 2006 9.7
Additions 0.7
30 June 2007 10.4
Transferred to assets classified as held for sale 10 (0.5)
30 June 2008 9.9
Provisions
30 June 2006 5.0
Impairment 2.7
30 June 2007 7.7
Impairment 0.2
30 June 2008 7.9
Net book value
30 June 2008 2.0
30 June 2007 2.7
30 June 2006 4.7
Additions in 2007 relate to the acquisitions of the remaining 25% of Proein SL and the trade and assets of Morpheme Studios. 
Impairment testing of goodwill
Goodwill acquired through business combinations has been allocated for impairment testing purposes to the groups of cash generating
units (“CGUs”) listed below. These represent the lowest level within the Group at which goodwill is monitored by management for
internal reporting purposes:
30 June 2008 30 June 2007
£m £m
Eidos Ltd 2.0 2.0
Proein SL – 0.5
Morpheme Studios – 0.2
2.0 2.7
Proein SL has been reclassified as an asset held for sale at the balance sheet date (see note 10). Morpheme Studios is no longer
considered to have any significant future economic value to the Group and has therefore been impaired in full in the current period. 
The recoverable amount of Eidos Ltd is based on a value in use calculation using cash flow projections based on the latest one year
budget forecast. An appropriate terminal value based on a perpetuity calculation is then generated. Growth rate assumptions were set at
nil and a discount factor of 15% applied, being management’s estimate of the risk attached to the underlying cashflows. Management
believe that no reasonably possible change in the key assumptions above would cause Eidos Ltd to become impaired.
The impairment in 2007 relates to the full write down of £2.7 million of goodwill in Pivotal Games. SCi Entertainment Group Plc Annual Report and Accounts 2008 55
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
Total
Brands Technology Softwareintangible assets
13. Other intangible assets £m £m £m £m
Cost
1 July 2006 69.2 47.7 1.5 118.4
Additions – 8.2 0.2 8.4
30 June 2007 69.2 55.9 1.7 126.8
Additions – 0.3 0.4 0.7
30 June 2008 69.2 56.2 2.1 127.5
Amortisation
1 July 2006 5.1 6.7 0.9 12.7
Charge for the period 4.6 6.4 0.4 11.4
30 June 2007 9.7 13.1 1.3 24.1
Charge for the period 4.6 7.0 0.1 11.7
Impairment 3.7 12.6 – 16.3
30 June 2008 18.0 32.7 1.4 52.1
Net book value
30 June 2008 51.2 23.5 0.7 75.4
30 June 2007 59.5 42.8 0.4 102.7
30 June 2006 64.1 41.0 0.6 105.7
Impairment of other intangible assets
Included in the impairment charge is an amount of £7.1 million in respect of the technology acquired with Rockpool Group and Bluefish
Media GmbH. A full impairment charge against these assets was made as these activities will no longer form a significant focus of the
Group and are unlikely to deliver any future economic benefits. A further impairment charge of £5.1 million was made against the brands
and technology of titles no longer developed and an impairment charge of £4.1 million against the brands and technology of an under
performing title. 
The recoverable amount of these assets was measured by reference to value in use using cashflow projections based on contribution
forecasts. Growth rate assumptions were set at nil and a discount factor of 15% applied, being management’s best estimate of the risk
attached to the underlying cashflows. The discount factor would need to increase by 5% and the contribution forecasts by a factor of
25% to result in an additional impairment greater than £1 million. 
Engines and technology Games Total
14. Capitalised development costs £m £m £m
30 June 2006 2.7 43.4 46.1
Capitalised in the year 22.7 45.8 68.5
Charged in the year – (32.8) (32.8)
30 June 2007 25.4 56.4 81.8
Capitalised in the year 4.9 64.9 69.8
Charged in the year (27.4) (74.5) (101.9)
30 June 2008 2.9 46.8 49.7 56 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
15. Investments in associates and subsidiary undertakings
The Group had the following investments in associated undertakings: £m
Cost
30 June 2006 0.3
Addition in the period 0.1
30 June 2007 0.4
Disposal (0.4)
30 June 2008 –
Share of retained profits
30 June 2006 0.1
Profit for the period 0.1
30 June 2007 0.2
Profit for the period –
30 June 2008 0.2
Net book value
30 June 2008 0.2
30 June 2007 0.6
30 June 2006 0.4
The disposal in the year related to an associated undertaking Io Interactive Hungary Kft, which was sold for £0.4 million. SCi Entertainment Group Plc Annual Report and Accounts 2008 57
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
15. Investments in associates and subsidiary undertakings continued
The parent Company had investments in the following principal undertakings, each of which has an accounting reference date of
30 June apart from Rocksteady Studios Ltd which has an accounting reference date of 30 September.
Country of registration
Principal activity Holding % Class and operation
Subsidiary undertakings
Eidos Ltd Developer and publisher of interactive entertainment software 100* Ordinary England
Eidos Interactive Ltd Developer and publisher of interactive entertainment software 100 Ordinary England
Pivotal Games Ltd Developer of interactive entertainment software 100 Ordinary England
Eidos Interactive Inc. Distributor of interactive entertainment software 100 Ordinary USA
Eidos Sarl Distributor of interactive entertainment software 100 Ordinary France
Eidos GmbH Distributor of interactive entertainment software 100 Ordinary Germany
Proein SL** Distributor of interactive entertainment software 100 Common shares Spain
Crystal Dynamics Inc. Developer of interactive entertainment software 100 Ordinary USA
Io Interactive AS Developer of interactive entertainment software 100 Ordinary Denmark
Eidos Hungary Kft Developer of interactive entertainment software 100 Ordinary Hungary
Eidos Studios, Sweden AB Developer of interactive entertainment software 100 Ordinary Sweden
Rockpool Group of
companies (comprising
Rockpool Games Ltd,
Ironstone Partners Ltd
and Sogoplay Ltd Developer of interactive entertainment software 100 Ordinary England
Bluefish Media Gmbh Developer of interactive entertainment software 100 Ordinary Germany
Eidos Creative Software
(Shanghai) Co. Inc. Ltd Developer of interactive entertainment software 100 Ordinary Shanghai
Eidos Interactive Corporation Developer of interactive entertainment software 100 Ordinary Canada
Associate undertakings
Rocksteady Studios Ltd Developer of interactive entertainment software 25.1 Ordinary England
* Held directly by the parent Company.
** see note 10.  58 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
30 June 2008 30 June 2007
16. Inventory £m £m
Finished goods 3.5 7.2
Cost of sales includes £41.6 million (2007: £48.7 million) which relates to manufacturing costs and cost of goods scrapped.
30 June 2008 30 June 2007
17. Trade and other receivables £m £m
Trade debtors 25.4 31.8
Prepayments and accrued income 3.4 3.8
Other debtors 2.1 5.7
30.9 41.3
An analysis of the allowance against accounts receivable and details of trade receivables past due and not impaired is included in note 28.
18. Deferred consideration £m
30 June 2006 –
Acquisition 4.1
30 June 2007 4.1
Transfer to current provisions (2.7)
30 June 2008 1.4
Deferred consideration is payable in relation to the purchase of Rockpool Games Ltd (and associated companies) and Bluefish Media
GmbH and is deemed payable over the next 1-2 years, The directors believe that it is probable that these amounts will be payable in the
future. 
19. Deferred tax assets and liabilities
At 30 June 2008 the Group had substantial tax losses carried forward subject to the agreement of the tax authorities in various tax
jurisdictions.
Movement in Movement in
30 June 2006 the period 30 June 2007 the period 30 June 2008
Movement in deferred tax balance £m £m £m £m £m
Tax losses 14.3 (1.0) 13.3 (1.6) 11.7
Brands and technology (31.3) 3.6 (27.7) 6.1 (21.6)
Short-term temporary differences 3.7 (2.4) 1.3 (3.6) (2.3)
Recognised deferred tax assets (liabilities) (13.3) 0.2 (13.1) 0.9 (12.2)
Presented as:
Deferred tax asset 2.1 (2.0) 0.1 (0.1) –
Deferred tax liability (15.4) 2.2 (13.2) 1.0 (12.2)
Total (13.3) 0.2 (13.1) 0.9 (12.2)
Movement in Movement in
30 June 2006 the period 30 June 2007 the period 30 June 2008
Movement in unrecognised deferred tax balance £m £m £m £m £m
Tax losses 6.4 1.8 8.2 31.4 39.6
Other short-term temporary differences – 8.0 8.0 6.2 14.2
Unrecognised deferred tax assets 6.4 9.8 16.2 37.6 53.8 SCi Entertainment Group Plc Annual Report and Accounts 2008 59
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
30 June 2008 30 June 2007
20. Trade and other payables £m £m
Trade creditors 12.1 12.2
Royalty creditors 12.9 14.2
Other creditors 3.4 3.6
28.4 30.0
30 June 2008 30 June 2007
21. Tax liabilities £m £m
Taxation and social security 1.4 2.9
Corporation tax 5.5 1.2
6.9 4.1
Returns Restructuring Deferred
provision provision consideration Total
22. Current provisions £m £m £m £m
30 June 2006 15.0 – – 15.0
Reclassified to debtors (5.3) – – (5.3)
Charged to the income statement in the year 33.3 – – 33.3
Utilised during the year (34.9) – – (34.9)
Acquisition – –2.12.1
30 June 2007 8.1 – 2.1 10.2
Changed to income statement in the year 28.5 1.8 – 30.3
Utilised in the year (21.8) – – (21.8)
Transferred to liabilities classified as held for sale (1.5) – – (1.5)
Settled in the year by cash and shares – – (2.1) (2.1)
Transfer from non-current provisions – – 2.7 2.7
30 June 2008 13.3 1.8 2.7 17.8
Returns provision
As at 30 June 2008 a provision against the return of goods sold and future price protection of £13.3 million (2007: £8.1 million) related
to sales made during the year and hence has been charged to the income statement during this period. This provision also includes
rebates due to retailers which are paid quarterly. This provision will be released as the games are returned or price protected, or the
quarterly rebate amount paid and is expected to be fully used or released in the 2009 financial year. 
Restructuring provision
The restructuring provision relates to redundancy costs in respect of the restructuring of Pivotal Games Ltd. The provision will be fully
utilised in the 2009 financial year.
Deferred consideration
Deferred consideration is payable in relation to the purchase of Rockpool Games Ltd (and associated companies) and Bluefish Media
GmbH and is deemed payable over the next 1-2 years. The directors believe that it is probable that these amounts will be payable in the
future.  60 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
30 June 2008 30 June 2007
23. Called-up share capital £m £m
Authorised
400,000,000 (2007: 97,000,000) ordinary shares of 5p each 20.0 4.9
Allotted, called-up and fully-paid
258,480,671 ordinary shares of 5p (2007: 86,470,185 ordinary shares of 5p each) 12.9 4.3
2007
2008 Number of shares 2007
Number of shares 2008 (revised) (revised)
The movement in share capital was as follows: m£m m£m
At beginning of the year 86.5 4.3 76.2 3.8
Share subscription by Warner Bros. –– 8.9 0.4
Issue of shares under placing and open offer 171.6 8.6 ––
Issue of shares under earn out agreements 0.3 – 0.1 –
Issue of new shares under SCi 1996 Share Option Plan 0.1 – 0.8 0.1
Issue of new shares to KBC Peel Hunt –– 0.5 –
At end of the year 258.5 12.9 86.5 4.3
During the year 171,605,424 shares were issued under a placing and open offer, 295,762 shares were issued under earn out
agreements and 109,300 shares were issued under the SCi 1996 Share Option Plan. 
24. Share-based payment 
SCi 1996 Share Option Plan
The Company operates an unapproved share option plan. At 30 June 2008, options were outstanding over 5,029,974 shares, including
options held by directors. The options are exercisable if certain performance criteria are met, as set by the remuneration committee,
which currently relate to share price performance compared with a published media sector average. 
Number Number
of shares over of shares over
which options which options Exercise
Scheme granted at Granted in Exercised in Lapsed in granted at Of which price
number 30 June 2007 the period the period the period 30 June 2008 exercisable (pence) Exercise period
4 17,500 – – – 17,500 17,500 47.5 18 July 2004 to 18 July 2008
5 240,000 – – – 240,000 240,000 81.0 20 August 2004 to 20 August 2008
6 20,000 – – – 20,000 20,000 85.0 1 October 2004 to 1 October 2008
8 250,000 – – – 250,000 250,000 72.0 16 June 2006 to 16 June 2010
9 11,150 – – – 11,150 11,150 103.5 23 October 2006 to 23 October 2010
11 128,674 – – – 128,674 128,674 125.5 31 March 2007 to 31 March 2011
12 719,600 – (109,300) (1,500) 608,800 608,800 100.5 27 August 2007 to 27 August 2011
13 78,000 – – (5,000) 73,000 73,000 230.0 17 December 2007 to 17 December 2011
14 8,000 – – – 8,000 8,000 273.5 2 February 2008 to 2 February 2012
15 8,000 – – 8,000 8,000 361.5 28 April 2008 to 28 April 2012
16 3,802,350 – – (232,500) 3,569,850 3,569,850 333.5 30 June 2008 to 30 June 2012
17 10,000 – – (10,000) – – 404.0 1 August 2008 to 1 August 2012
18 65,000 – – (65,000) – – 515.0 11 October 2008 to 11 October 2012
19 75,000 – – – 75,000 – 484.0 17 October 2008 to 17 October 2012
20 20,000 – – – 20,000 – 540.0 1 November 2008 to 1 November 2012
21 25,000 – – (25,000) – – 560.0 11 January 2009 to 11 January 2013
27 44,000 – – (44,000) – – 475.0 17 July 2009 to 17 July 2013
5,522,274 – (109,300) (383,000) 5,029,974 4,934,974 SCi Entertainment Group Plc Annual Report and Accounts 2008 61
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
24. Share-based payment continued
Phantom schemes
In addition to the SCi 1996 Share Option Plan the Group operates a cash settled equity incentive plan for certain employees, principally
in the United States. Cash awards under this scheme are based on movements in the Group’s share price. One director was included in
this scheme.
Number Number
of shares over of shares over
which options which options Exercise
Scheme granted at Granted in Exercised in Lapsed in granted at Of which price
number 30 June 2007 the period the period the period 30 June 2008 exercisable (pence) Exercise period
23 484,808 – (8,333) (293,187) 183,288 183,288 333.5 30 June 2008 to 30 June 2011
24 10,000 – – (10,000) – – 333.5 11 October 2008 to 11 October 2011
25 83,334 – – (36,665) 46,669 – 466.0 11 October 2008 to 11 October 2011
26 75,000 – – – 75,000 – 511.0 16 January 2009 to 16 January 2012
28 30,000 – – – 30,000 – 448.0 1 August 2009 to 1 August 2013
29 39,667 – – (14,500) 25,167 – 481.0 1 October 2008 to 1 October 2011
30 37,167 – – (14,500) 22,667 – 481.0 1 October 2009 to 1 October 2011
31 37,167 – – (14,500) 22,667 – 481.0 1 October 2010 to 1 October 2011
32 1,000 – – – 1,000 1,000 507.0 6 December 2006 to 6 December 2010
33 25,000 – – – 25,000 – 460.0 18 May 2009 to 18 May 2013
34 25,824 – – (9,158) 16,666 – 466.0 31 March 2008 to 31 March 2012
35 25,824 – – (9,991) 15,833 – 466.0 31 March 2009 to 31 March 2012
36 25,824 – – (9,991) 15,833 – 466.0 31 March 2010 to 31 March 2012
37 – 50,000 – (50,000) – – 468.0 2 April 2010 to 2 April 2014
38 – 30,000 – – 30,000 – 360.0 8 August 2010 to 8 August 2014
39 – 200,000 – (200,000) – – 296.0 30 September 2010 to 30 September 2014
900,615 280,000 (8,333) (662,492) 509,790 184,288
The market price of the ordinary shares at 30 June 2008 was 43p and the range during the period was 32p to 521p. All share options
granted during the year were issued at market value.
The weighted average share price of shares exercised in the period was 391p.
The weighted average remaining contractual life of share options outstanding as at 30 June 2008 is 3.6 years (30 June 2007: 4.5 years). 62 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
24. Share-based payment continued
The following information is relevant in the determination of the fair value at the year end of options granted during the year under the cash
settled share-based remuneration schemes operated by the Group. 
Share price Expiry period
at valuation (years from Risk-free
Scheme Option pricing date Exercise price valuation Expected interest Fair value
number Scheme name model used (pence) (pence) date) volatility rate (pence)
23/24 Equity Incentive Plan 30/06/05 Binomial 43 335.5 3.00 100% 5.17% 8
25 Equity Incentive Plan 11/10/05 Binomial 43 466 3.28 100% 5.17% 9
26 Equity Incentive Plan 16/01/06 Binomial 43 511 3.54 100% 5.17% 8
28 Equity Incentive Plan 01/08/06 Binomial 43 448 5.09 100% 5.17% 7
29 Equity Incentive Plan 01/10/06 Binomial 43 481 3.25 100% 5.17% 7
30 Equity Incentive Plan 01/10/06 Binomial 43 481 3.25 100% 5.17% 7
31 Equity Incentive Plan 01/10/06 Binomial 43 481 3.25 100% 5.17% 8
32 Equity Incentive Plan 06/12/06 Binomial 43 507 2.43 100% 5.17% 4
33 Equity Incentive Plan 18/05/07 Binomial 43 460 0.88 100% 5.17% –
34 Equity Incentive Plan 31/03/07 Binomial 43 468 3.75 100% 5.17% 9
35 Equity Incentive Plan 31/03/07 Binomial 43 468 3.75 100% 5.17% 9
36 Equity Incentive Plan 31/03/07 Binomial 43 468 3.75 100% 5.17% 10
37 Equity Incentive Plan 02/04/07 Binomial 43 468 5.76 100% 5.17% 15
38 Equity Incentive Plan 08/08/07 Binomial 43 360 6.11 100% 5.17% 16
39 Equity Incentive Plan 30/09/07 Binomial 43 296 6.18 100% 5.17% 18
Volatility is based on statistical analysis of share price data over 3 years.
The share-based payment expense recorded in the financial statements of the Group comprises:
12 months to 12 months to
2008 2007
£m £m
Phantoms schemes (1.3) (0.2)
Share-based payment schemes 1.4 2.4
0.1 2.2 SCi Entertainment Group Plc Annual Report and Accounts 2008 63
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
25. Reserves and changes in equity
SCi Entertainment Group Plc has the following reserves:
Foreign Share- Employee
currency based benefit
Share Share Merger Capital translation comp- trust share Retained
capital premium reserve reserve reserve ensation reserve profit Total
£m £m £m £m £m £m £m £m £m
1 July 2006 3.8 74.6 81.3 6.3 0.5 4.7 (0.9) 14.9 185.2
Loss for the year – – – – – – – (28.1) (28.1)
Charged to equity
New shares issued 0.5 46.6 – – – – – – 47.1
Share issue costs – (0.9) – – – – – – (0.9)
Share-based compensation – – – – – 2.4 – – 2.4
Share-based compensation moved
to liabilities* – – – – – (2.0) – – (2.0)
Foreign exchange – – – – (1.1) – – – (1.1)
Total charged to equity 0.5 45.7 – – (1.1) 0.4 – – 45.5
Total income and expense for the period 0.5 45.7 – – (1.1) 0.4 – (28.1) 17.4
30 June 2007 4.3 120.3 81.3 6.3 (0.6) 5.1 (0.9) (13.2) 202.6
Loss for the year – – – – – – – (143.0) (143.0)
Charged to equity
New shares issued 8.6 52.7 – – – – – – 61.3
Share issue costs – (3.8) – – – – – – (3.8)
Share-based compensation – – – – – 1.4 – – 1.4
Foreign exchange – – – – 1.8 – – – 1.8
Total charged to equity 8.6 48.9 – – 1.8 1.4 – – 60.7
Total income and expense for the period 8.6 48.9 – – 1.8 1.4 – (143.0) (82.3)
30 June 2008 12.9 169.2 81.3 6.3 1.2 6.5 (0.9) (156.2) 120.3
* Transfer to liabilities of amounts in respect of cash settled overseas staff equity schemes previously classified within reserves.
Share premium Amount subscribed for share capital in excess of nominal value. 
Merger reserve In the 9 months to 30 June 2005 the Company took advantage of the exemption given in
Section 131of the Companies Act 1985 not to recognise the premium on the issue of shares
issued in order to acquire at least 90% of Eidos plc. As a result, the associated £69.4 million of
fair value of shares issued in excess of the nominal value has been transferred to the merger
reserve.
In 2006, the remaining 9.96% was purchased and the £11.4 million of fair value of the shares in
excess of the nominal value was also charged to the merger reserve. 
Capital reserve During the year ended 30 September 2004, the Company completed a capital reduction to
restructure the Group’s reserves. Accordingly the balance of the share premium account of
£28.3 million at 30 September 2003 has been eliminated with £6.3 million being transferred to
a capital reserve and the balance credited against accumulated losses in the retained earnings
reserve.
Foreign currency translation reserve Reserve includes the movement on overseas foreign currency retained profits reserves and
revaluation of intercompany provisions and investments.  
Share-based compensation reserve Reserve contains the value of share-based compensation awards, which are charged to the
income statement over the life of the awards, but which have no cash impact.
Employee benefit trust share reserve Reserve containing shares held by an employee benefit trust for the purpose of satisfying the
exercise of awards under the Company’s share option plans. 
Retained profits Cumulative net gains and losses recognised in the consolidated income statement. 64 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
26. Leases
Finance leases 
The Group has no finance leases as at 30 June 2008 or 2007.
Operating leases
The total future minimum rentals payable under operating leases in respect of the total lives of the leases are:
2008 2007
Land and 2008 Land and 2007
buildings Other buildings Other
£m £m £m £m
Within one year 2.1 0.2 2.3 0.2
Within two to five years 3.4 0.1 3.7 0.2
After five years 1.4 – 2.1 –
Total 6.9 0.3 8.1 0.4
Leases of land and buildings are typically subject to rent reviews at specified intervals and provide for the lessee to pay all insurance,
maintenance and repair costs. Other operating leases relate to cars and office equipment.
27. Financial commitments
There were no capital commitments contracted at the balance sheet date. 
28. Financial instruments – risk management and numerical information
The Group is exposed through its operations to one or more of the following financial risks:
> Fair value or cash flow interest rate risk
> Liquidity risk
> Credit risk
> Foreign currency risk
The policy to address each of the above risks is described in more detail below.
Fair value or cash flow interest rate risk
Surplus cash throughout the Group is put on short-term deposit where appropriate, at floating rates. The Board constantly monitors the
financial markets and the Group’s future borrowing requirements to ensure that this policy is exercised in the Group’s best interests. The
use of Group facilities is kept to a minimum. 
Liquidity risk
Liquidity risk is managed centrally on a Group basis. Bank facilities are agreed at appropriate levels having regard to the Group’s forecast
operating cash flows and future capital expenditure. 
At 30 June 2008 the Group had an agreed overdraft facility of £25 million (2007: £20 million), extending for a period of more than
12 months subject to the requirements of certain covenants. The facility bears interest at 3% (2007: 1%) over UK base rate. At 30 June
2008 none of the facility was utilised (2007: £nil). The directors consider that this will be sufficient to satisfy the Group’s working capital
requirements for the foreseeable future. 
Credit risk
The Group’s principal financial assets are trade receivables, cash and cash equivalents. The Group’s revenues are principally derived
from sales to retailers and distributors and the main credit risk based is attributable to trade receivables. The amounts due from any
particular retailer or distributor may be material, particularly following major product releases. 
The Group’s policy is to only extend credit to companies with a strong credit rating and to obtain credit insurance to protect against
risk of default on all debts. The credit insurance policies operated by the Group cover 91% of the value of receivables and therefore the
Group bares a limited risk of recovery. 
The Group does not prepare any formal analysis of customers or the quality of receivables. At the balance sheet date no individual
customer represented more than 16% (2007: 9%) of total receivables and hence there was no significant concentration of credit risk.
The Group records impairment losses on its trade receivables separately from the gross receivable and calculates the allowance based
on evidence of its likely recoverability. The movements on this allowance account in the year are summarised below.  SCi Entertainment Group Plc Annual Report and Accounts 2008 65
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
28. Financial instruments – risk management and numerical information continued
30 June 2008 30 June 2007
£m £m
30 June 2007 0.9 0.8
Increases in provisions 0.2 0.1
Written off against provisions (0.7) –
30 June 2008 0.4 0.9
The trade receivable past due and not impaired at the balance sheet date amounted to £9.1 million (2007: £11.0 million) and comprised
£7.7 million (2007: £9.4 million) overdue by up to 30 days, £1.3 million (2007: £0.9 million) overdue by up to 60 days and £0.1 million
(2007: £0.7 million) overdue by more than 60 days.
In addition to receivables due from retailers and distributors, the Group has limited exposure to receivables due from licence income.
The total receivable across the Group amounted to £1.3 million (2007: £1.6 million) at the balance sheet date. No allowance was
considered necessary as the amounts outstanding were determined to be fully recoverable. The total amount past due at the balance
sheet date amounted to £0.4 million (2007: £0.3 million).
Foreign currency risk
The Group earns income and incurs expenditure throughout the world in a variety of currencies. Foreign currency risk is managed by a
variety of methods including forward contracts and swap arrangements. The Group did not have any outstanding forward contracts or
swap arrangements at the balance sheet date. 
Categories of financial instruments 
Financial assets
Loans and receivables
30 June 2008 30 June 2007
The financial assets of the Group comprised: £m £m
Trade and other receivables 30.9 41.3
Cash and cash equivalents
– Sterling 16.3 15.6
– US dollar 1.9 6.6
– Euro 6.3 8.5
– Other 1.4 0.7
Total cash and cash equivalents 25.9 31.4
Current financial assets 56.8 72.7
Total financial assets 56.8 72.7
Cash and cash equivalents include balances held on which interest is received at floating rates in the overnight money market. Rates of
interest earned on cash balances varied between 0 and 6.0% (2007: 0 to 6.2%).
Financial liabilities
Measured at amortised cost
30 June 2008 30 June 2007
The financial liabilities of the Group comprised: £m £m
Trade and other payables 28.4 30.0
Income tax liabilities 6.9 4.1
Accruals 10.9 10.1
Provisions 17.8 10.2
Current financial liabilities 64.0 54.4
Long-term financial liabilities 1.4 4.1
Total financial liabilities 65.4 58.5
All financial liabilities are interest free. 
Trade payables and accruals are non interest bearing and are expected to be settled within 90 days. 
In the opinion of the directors, there is no difference between the book value and the fair value of any of the above assets or liabilities. 66 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the consolidated accounts continued
for the 12 months ended 30 June 2008
29. Related party transaction 
a) Transactions with associated undertakings 
In the year to 30 June 2008 the Group paid £3.5 million to Rocksteady Studios Ltd, an associated undertaking in which the Group has
an interest of 25.1%, as advances for the development of games for the Group (2007: £2.9 million). At 30 June 2008, the Group was
owed £nil million by Rocksteady Studios Ltd (2007: was owed £nil). 
b) Directors and key management remuneration
Details of amounts paid to directors and key management is set out in note 5 and in the remuneration report on page 33.
30. Contingent assets and liabilities
The Company and its subsidiaries are defendants in a number of legal proceedings incidental to its operations. Other than already
provided for in the financial statements, the Company does not expect the outcome of such proceedings, either individually or in
aggregate, to have a material effect upon the results of the Company’s operations or its financial position. SCi Entertainment Group Plc Annual Report and Accounts 2008 67
Accounts
Company balance sheet under UK GAAP
at 30 June 2008
30 June 2008 30 June 2007
Notes £m £m
Fixed assets
Investments ii 28.7 92.0
28.7 92.0
Current assets
Debtors iii 177.8 15.5
Cash at bank and in hand 13.0 17.1
190.8 32.6
Creditors: amounts falling due within one year iv (110.9) (1.4)
Net current assets 79.9 31.2
Total assets less current liabilities 108.6 123.2
Net assets 108.6 123.2
Capital and reserves
Called-up equity share capital v 12.9 4.3
Share premium account v 169.2 120.3
Capital reserve v 6.3 6.3
Share-based compensation v 6.5 5.1
Profit and loss account v (86.3) (12.8)
Shareholders’ funds v 108.6 123.2
The notes on pages 68 to 71 form part of the Company UK GAAP financial statements.
These financial statements were approved by the Board of Directors and authorised for issue on 26 September 2008 and signed on its
behalf by:
Phil Rogers
Director 68 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the UK GAAP financial statements
for the 12 months ended 30 June 2008
i. Accounting policies
The principal accounting policies of the Company are
summarised below. 
Basis of accounting
The financial statements have been prepared under the historical
cost convention and in accordance with applicable accounting
standards.  
As provided by Section 230 of the Companies Act 1985, no
profit and loss account is presented in respect of SCi Entertainment
Group Plc. 
Accounting periods
The accounting reference date of the Company is 30 June. The
current year’s results are for the period from 7 July 2007 to
30 June 2008. The comparative years results are for the period
from 1 July 2006 to 6 July 2007.
Fixed asset investments
Fixed asset investments are shown at cost less provisions for any
impairment.
Investments are stated at cost plus direct acquisition costs.
Where consideration is represented by new share issues, under
Section 131 of the Companies Act 1985, the Company has
elected to show the associated cost of investment as being the
nominal value of the shares issued.
Taxation
Corporation tax payable is provided on taxable profits at prevailing
rates.
ii) Investments
The Company has the following investments in shares of subsidiary undertakings: £m
Balance brought forward 92.0
Additions in the year 26.7
Provision in the year (90.0)
Balance carried forward 28.7
At 30 June 2008, the principal undertakings of SCi Entertainment Group Plc are detailed in note 15 of the IFRS financial statements. The
additions in the year relate to the acquisition of Centregold Ltd and Eidos KK from a subsidiary undertaking, Eidos Ltd. 
30 June 2008 30 June 2007
iii) Debtors £m £m
Amounts due from subsidiary undertakings 177.3 15.3
Other debtors 0.5 0.2
177.8 15.5
Long-term incentive plan for executive directors 
Future payments under the Company’s long-term incentive plan
are estimated and charged to the profit and loss account over the
period to which they relate. 
Pensions 
For defined contribution schemes, the amount charged to the
profit and loss account in respect of pension costs is the
contributions payable in the year. Differences between
contributions payable in the year and contributions actually paid
are shown as either accruals or prepayments in the balance
sheet.
Share-based employee remuneration 
Share option plans enable the employees of the Company and
its subsidiaries to participate in the success of the Company by
acquiring shares. The Company recognises a charge to the profit
and loss account in respect of share options based on the fair
value of the awarded options at the date of grant. This expense is
recognised over the relevant vesting periods, adjusted to reflect
the actual and expected levels of vesting. The fair value of the
options is assessed using a binomial model that takes account of
the terms and conditions of the options as defined when they are
awarded. The charge for share options issued in relation to
subsidiary employees are dealt with in the accounts of those
companies, under their local accounting rules.
Financial instruments
Financial assets and liabilities are initially measured at fair value. SCi Entertainment Group Plc Annual Report and Accounts 2008 69
Accounts
Notes to the UK GAAP financial statements continued
for the 12 months ended 30 June 2008
30 June 2008 30 June 2007
iv) Creditors: amounts falling due within one year £m £m
Trade creditors 1.0 0.6
Amounts due to subsidiary undertakings 107.9 –
Accruals and deferred income 2.0 0.8
110.9 1.4
30 June 2008 30 June 2007
v) Share capital and reserves £m £m
Authorised
400,000,000 (2007: 97,000,000) ordinary shares of 5p each 20.0 4.9
Allotted, called-up and fully-paid
258,460,671 ordinary shares of 5p (2007: 86,470,185 ordinary shares of 5p each) 12.9 4.3
2008 Number of shares 2007
Number of shares 2008 (revised) (revised)
The movement in share capital was as follows: m£m m£m
At beginning of the year 86.5 4.3 76.2 3.8
Share subscription by Warner Bros. –– 8.9 0.4
Issue of shares under placing and open offer 171.6 8.6
Issue of shares under earn our agreements 0.3 – 0.1–
Issue of new shares under SCi 1996 Share Option Plan 0.1 – 0.8 0.1
Issue of shares to KBC Peel Hunt –– 0.5 –
At end of the year 258.5 12.9 86.5 4.3
Details of shares issued in the year are given in note 23 of the consolidated financial statements. 
Share premium Share-based Profit and 
account Capital reserve compensation loss account
£m £m £m £m
30 June 2007 120.3 6.3 5.1 (12.8)
Loss for the period – – – (73.5)
Share-based compensation – – 1.4 –
New shares issued 52.7 – – –
Share issue costs (3.8) – – –
30 June 2008 169.2 6.3 6.5 (86.3)
30 June 2008 30 June 2007
Reconciliation of movement in shareholders’ funds £m £m
Opening shareholders’ funds 123.2 80.8
Loss for the financial period (73.5) (4.2)
Share-based compensation 1.4 0.4
New shares issued 57.5 46.2
Closing shareholders’ funds 108.6 123.2 70 SCi Entertainment Group Plc Annual Report and Accounts 2008
Accounts
Notes to the UK GAAP financial statements continued
for the 12 months ended 30 June 2008
vi) Share-based compensation
SCi 1996 Share Option Plan
The Company operates an unapproved share option plan. At 30 June 2008, options were outstanding over 2,349,174 shares, including
options held by directors. The options are exercisable if certain performance criteria are met, as set by the remuneration committee,
which relate to share price performance compared with the FTSE Media Index.
Number Number
of shares over of shares over
which options which options Exercise
Scheme granted at Granted in Exercised in Lapsed in granted at Of which price
number 30 June 2007 the period the period the period 30 June 2008 exercisable (pence) Exercise period
4 17,500 – – – 17,500 17,500 47.5 18 July 2004 to 18 July 2008
5 240,000 – – – 240,000 240,000 81.0 20 August 2004 to 20 August 2008
6 20,000 – – – 20,000 20,000 85.0 1 October 2004 to 1 October 2008
8 250,000 – – – 250,000 250,000 72.0 16 June 2006 to 16 June 2010
11 128,674 – – – 128,674 128,674 125.5 31 March 2007 to 31 March 2011
12 505,000 – – (10,000) 495,000 495,000 100.5 27 August 2007 to 27 August 2011
13 14,000 – – – 14,000 14,000 230.0 17 December 2007 to 17 December 2011
16 1,089,000 – – – 1,089,000 1,089,000 333.5 30 June 2008 to 30 June 2012
19 75,000 – – – 75,000 – 484.0 17 October 2008 to 17 October 2012
20 20,000 – – – 20,000 – 540.0 1 November 2008 to 1 November 2012
2,359,174 – – (10,000) 2,349,174 2,254,174
Phantom schemes
In addition to the SCi 1996 Share Option Plan the Group operates a cash settled equity incentive plan for certain employees.
Cash awards under this scheme are based on movements in the Group’s share price. One director was included in this scheme.
Number Number
of shares over of shares over
which options which options Exercise
Scheme granted at Granted in Exercised in Lapsed in granted at Of which price
number 30 June 2007 the period the period the period 30 June 2008 exercisable (pence) Exercise period
28 30,000 – – – 30,000 – 448.0 1 August 2009 to 1 August 2013
37 50,000 – (50,000) – – 468.0 2 April 2010 to 2 April 2014
39 200,000 – (200,000) – – 296.0 30 September 2010 to 30 September 2014
30,000 250,000 – (250,000) 30,000 –
The market price of the ordinary shares at 30 June 2008 was 43p and the range during the period was 32p to 521p. All share options
granted during the year were issued at market value.
The weighted average remaining contractual life of share options outstanding as at 30 June 2008 is 3.4 years.
Details of the fair value of share options granted in the year under the schemes operated by the Group are as shown in note 24 of
the consolidated statements.
Share-based compensation
30 June 2008 30 June 2007
The charge/(credit) recorded in the financial statements of the parent Company is: £m £m
Phantom schemes – (2.1)
Share-based payment schemes 0.6 (1.2)
0.6 (3.3)
The credit in 2007 represents the recharge of the share-based compensation relating to employees of subsidiary companies. SCi Entertainment Group Plc Annual Report and Accounts 2008 71
Accounts
Notes to the UK GAAP financial statements continued
for the 12 months ended 30 June 2008
vii) Loss attributable to SCi Entertainment Group Plc
The loss for the 12 months to 30 June 2008 dealt with in the financial statements of the parent company, SCi Entertainment Group Plc, was
£73.5 million (12 months to 30 June 2007: loss of £4.2 million).
viii) Employee costs and numbers
The average number of people employed by the Company (including directors) during the period was as follows:
2008 2007
Number Number
Management and administration 28 23
Staff costs (including directors) comprise: £m £m
Wages and salaries 1.8 2.8
Compensation for loss of office 0.9
Redundancy 0.1
Defined pension costs 0.3 0.2
Employers national insurance and similar taxes 0.4 0.5
Total 3.5 3.5
Please refer to note 5 of the notes to the consolidated financial statements on page 49 for further details of the director’s remuneration.  72 SCi Entertainment Group Plc Annual Report and Accounts 2008
Shareholder information
Shareholder analysis
As at 26 September 2008, the number of registered shareholders was 4,532 and the number of ordinary shares in issue was 
263,586,730.
Number of Percentage of Number of Percentage of
shareholders shareholders shares (million) total shares
Range of holdings:
1 to 1,000 3,791 83.7 0.67 0.2
1,001 to 5,000 382 8.4 0.86 0.3
5,001 to 10,000 76 1.7 0.55 0.2
10,001 to 50,000 120 2.6 2.85 1.1
50,001 to 100,000 42 0.9 2.99 1.1
100,001 to 500,000 68 1.5 16.75 6.4
500,001 to 1,000,000 17 0.4 12.34 4.7
1,000,000 to highest 36 0.8 226.58 86.0
Total 4,532 100.0 263.59 100.0
Held by:
Individuals 3,894 85.9 11.80 4.5
Institutions and companies 638 14.1 251.79 95.5
Total 4,532 100.0 263.59 100.0
Shareholder enquiries
Enquiries concerning shareholdings, change of address or other
particulars, should be directed in the first instance to the Company’s
registrars, Capita Registrars, Northern House, Woodsome Park,
Fenay Bridge, Huddersfield, West Yorkshire HD8 0LA
(Tel: 0870 162 3100). Capita also provide a range of on-line
shareholder information services at www.capitaregistrars.com
where shareholders can check their holdings and find practical
help on transferring shares and updating personal details.
Share dealing service
An internet and telephone share dealing service operated by
Capita Registrars is available for shareholders to buy or sell SCi
ordinary shares on the London Stock Exchange at
www.capitadeal.com (Tel: +44 (0)870 458 4577).
Share price information
The market price of SCi shares is available at the Company’s
website at www.sci.co.uk. Within the UK the price is also
available on Ceefax and Teletext. SCi’s stock exchange code is
SEG.
Unsolicited mail
The Company is obliged by law to make its share register
available upon request to the public and to other organisations
which may use it as a mailing list resulting in shareholders
receiving unsolicited mail. Shareholders wishing to limit the
receipt of such mail should write to the Mailing Preference
Service, Freepost 29, LON 20 771, London W1E 0ZT or
telephone +44 (0)845 703 4599 for an application form.
ShareGIFT
Shareholders who hold only a small number of shares, where
dealing costs make it uneconomic to sell them, may wish to
consider donating them to charity through Share GIFT, a
registered charity administered by The Orr Mackintosh
Foundation. Further information is available at
www.sharegift.org or telephone +44 (0)20 7930 3737.
Annual General Meeting
The Company’s Annual General Meeting will be held at the
offices of KBC Peel Hunt, 111 Old Broad Street, London
EC2N 1PH on 2 December 2008. A circular to shareholders,
which includes the notice convening the meeting, accompanies
this document.
Corporate calendar 2008
November 2008 Interim Management Statement
2 December 2008 Annual General Meeting
February 2009 Announcement of half year results to
31 December 2008
May 2009 Interim Management Statement
September 2009 Announcement of full year results to
30 June 2009
Investor relations
General enquiries may be addressed to the Chief Financial
Officer, Robert Brent at RobertB@eidos.co.uk or by post to
Robert Brent, SCi Entertainment Group Plc, Wimbledon Bridge
House, 1 Hartfield Road, London SW18 3RU or by telephone on
+44 (0)20 8636 3000.  SCi Entertainment Group Plc Annual Report and Accounts 2008
Five year record
IFRS IFRS IFRS IFRS UK GAAP
12 months to 12 months to 12 months to 9 months to 12 months to
30 June 30 June 30 June 30 June 30 September
2008 2007 2006 2005 2004
Restated
£m £m £m £m £m
Summary of results
Revenue 118.9 128.8 179.1 18.0 31.0
Gross profit 56.1 54.3 103.8 5.0 20.2
Operating (loss)/profit (134.9) (31.4) 7.8 (14.0) 4.5
Adjusted EBITDA (99.1) (13.3) 28.8 (5.4) 6.0
(Loss)/profit before tax (136.0) (30.0) 8.1 (13.4) 4.5
Net assets employed
Non-current assets 134.7 194.4 162.2 142.9 5.6
Net current assets/(liabilities) (0.8) 25.5 40.0 29.0 17.6
Total assets less current liabilities 133.9 219.9 202.2 171.9 23.2
Non-current liabilities (13.6) (17.3) (15.4) (19.6) –
Net assets 120.3 202.6 186.8 152.3 23.2
Pence Pence Pence Pence Pence
(Loss)/earnings per share (136.3) (35.3) 18.5 (37.5) 17.89
The amounts stated for 2004 are stated in the basis of UK GAAP as it is not practical to restate these periods for the transition to IFRS. 
Printed on Revive Special Silk 30% de-inked post-consumer waste with the remainder being virgin wood fibre.
Bleaching Pulp is a mix using a Totally Chlorine Free (TCF) and an Elemental Chlorine Free (ECF) process.
This product is CarbonNeutral
®
Produced at a mill that is certified to the ISO14001 environmental management standard.
FSC Mixed Sources – product group from recycled wood or fibre, well managed forests and other controlled sources.
Cover laminated in CelloGreen
®
Eco-print Laminate.
CelloGreen
®
Eco-print Laminate is sustainable, compostable and can be recycled.
Designed and produced by Benjamin Rowntree Design Tel: 020 7357 0700   www.benrown.co.uk   Printed by Burlington
BATMAN and all related characters and elements are trademarks of and © DC Comics.
THE WACKY RACES and all related characters and elements are trademarks of and © Hanna-Barbera.
LOONEY TUNES and all related characters and elements are trademarks of and © Warner Bros.
WBIE LOGO, WB SHIELD: ™ & © Warner Bros. Entertainment Inc.
XX%
Cert no.SGS-COC-2958
30% SCi Entertainment Group Plc
Wimbledon Bridge House
1 Hartﬁeld Road
Wimbledon
London
SW19 3RU
Tel: +44 (0)20 8636 3000
Fax: +44 (0)20 8636 3001
Web: www.sci.co.uk
Email: info@sci.co.uk