Annual report and accounts
for the year ended 31 March 2007
Distribution of technology…
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Acal plc Annual report and accounts for the year ended 31 March 2007 Spain
Italy
Finland
Norway
Denmark
Belgium
Netherlands
Germany
UK
Electronics Division
Parts Services Division
IT Solutions Division
Bangalore
Shanghai
Singapore
Associate company offices
Sweden
Taiwan
Hong Kong
Bangkok
Selangor
Johar Bahru
Penang
Shenzhen
Suzhou
France
Contents
Highlights 1
Chairman’s statement 2
Acal’s business 4
Chief Executive’s review 8
Finance Director’s review 12
Directors 16
Corporate information 17
Directors’ report 18
Board report on corporate governance 20
Directors’ remuneration report 24
Corporate social responsibility 28
Statement of directors’ responsibilities 29
Report of the auditors – Group 31
Consolidated income statement 33
Consolidated statement of recognised 
income and expense 34
Consolidated balance sheet 35
Consolidated cash flow statement 36
Notes to the group financial statements 37
Report of the auditors – Company 69
Company balance sheet 71
Notes to the company financial statements 72
Five year record 77
Notice of annual general meeting 78
Principal locations 80
Acal plc 
Acal is one of Europe’s leading value-added distributors in
the electronics and IT industry supplying a wide range of
complementary products, solutions and services. 
The Group has approximately 950 employees located in
offices throughout Western Europe who serve and support
sales to customers from concept to fulfilment.
The business provides opportunities for growth, a high
return on capital employed and a positive cash flow. The
strategy is to invest in further development organically or 
by acquisition where this complements our current activities.
This will enhance shareholder value and provide further
opportunities for our staff, our customers and our suppliers.
Worldwide locations 1 ACAL plc annual report and accounts for the year ended 31 March 2007
* EBIT – Earnings before interest, tax, the Group’s share of profit of associated companies and exceptional items.
** Disposed activities represent the sold AC&R business and ongoing activities represent the remaining business 
of the Group.
Highlights
• Sales of ongoing activities up 1.5% at £260.9m
• Profit before tax and exceptionals of ongoing activities 
up 14.0% at £9.8m
• EPS of ongoing activities before exceptionals up 27.6% at
25.0p
• Electronics: Financial performance now benefiting from
growing higher technology product portfolio
• Parts Services: Weaker demand experienced in this division
• IT Solutions: Major success in networking and security
products; stability in margins
• Total divdends for the year up 1.4% at 21.9p per share
2007 2006
£m £m Change
Turnover – ongoing activities** 260.9 257.0 +1.5%
EBIT* – ongoing activities 10.5 9.9 +6.1%
Profit before tax:
– ongoing activities (excluding exceptionals) 9.8 8.6 +14.0%
– including disposed activities 14.8 9.7
Basic earnings per share:
– ongoing activities (excluding exceptionals) 25.0p 19.6p +27.6%
– including disposed activities 44.4p 22.3p
Dividends per share – relating to year 21.9p 21.6p +1.4% Our strategy remains, to concentrate on
Europe and selectively expand our supplier
base and service offerings.
Chairman’s statement 
realising potential..
2 ACAL plc annual report and accounts for the year ended 31 March 2007
Following the disposal of the Air Conditioning &
Refrigeration business in July 2006, the focus of the
Company has been on implementing our strategy of
increasing market share to achieve profitable growth. 
In October 2006, as part of the group’s consolidation,
Acal acquired the remaining minority interest in CPI 
and commenced the process of integration of its
customer-facing activities with EAF, our other major 
Parts Services business.
Sales of ongoing activities grew 1.5% to £260.9m 
despite an 8.8% fall in Parts Services. EBIT for the year
grew by 6.1% to £10.5m reflecting significant
improvement in the performance of both Electronics and
IT Solutions offsetting the reduced profit in Parts Services.
The Group’s ongoing activities made a 40% return on
average capital employed, before exceptional items, up
from 31% for the prior year.
Costs have remained under close control across all
businesses with further consolidation of logistic and 
back office functions resulting in selective headcount
reductions. However, due to recent successes in mainland
Europe we have recruited additional staff in both
Germany and Italy to address new Electronics business.
Profit before taxation and exceptional items from ongoing
activities grew by 14.0% from £8.6m to £9.8m and the
corresponding earnings per share increased 27.6% to 25.0p. ..
3 ACAL plc annual report and accounts for the year ended 31 March 2007
Dividend
The Board is recommending a final dividend of 14.7p per
share payable to shareholders on the register as at 
15 June 2007. This, together with the interim dividend of
7.2p will make a total of 21.9p for the year, an increase 
of 1.4%. 
Board composition and governance
There have been no changes to the composition of the
Board or any of its Committees during the year. The
Directors remain of the view that the Board, as currently
constituted, is appropriate for a Company of Acal’s size
and incorporates a suitable balance of skills; the matter is,
however, kept under review. Acal continues to strive for
high standards of corporate governance, full details of
which are set out in the governance statement included 
as part of the Annual Report and Accounts.
Employees
To succeed in a competitive environment requires
commitment and dedication from staff. We are fortunate
at Acal to have a motivated, loyal and committed
workforce and I take this opportunity to thank them
personally and on behalf of the Board for their continued
hard work and support.
Strategy and the future
The growth in sales and profits of our two largest
divisions, Electronics and IT Solutions, has been very much
in line with our plans and we continue to invest in new
resources, particularly in Electronics. The Parts Services
business, after an excellent prior year, suffered this year 
as a result of weaker demand in the first half and a
significant slowdown on a major contract. Whilst there
continue to be major opportunities going forward, their
timing remains difficult to predict.
Our strategy remains unchanged: to concentrate on
Europe, selectively to expand our supplier base in
Electronics and IT Solutions and to extend our offerings 
to the supply chain in Parts Services. We plan to continue
our progress by growing our market share rather than
relying on market growth.
We strive for greater efficiency and continue to
consolidate many administrative and logistical functions
across all three divisions. We continue to consider ways 
of enhancing shareholder value and whilst our strategy 
is primarily based upon organic growth we will consider
selective acquisitions where they accelerate the delivery 
of this strategy.
Richard Moon 
Chairman
4 June 2007 Acal’s business 
Acal is a leading distributor of technology products for
the electronics and IT industries. With offices throughout
Europe it is in a pre-eminent position to service this
market with technically trained personnel and strategically
located inventory.
4 ACAL plc annual report and accounts for the year ended 31 March 2007
Unparalleled expertise
Acal’s key differentiators compared to
others in the same field are its unparalleled
expertise in Electronic Components of the
design-in philosophy; in IT of the solution
sell and in Parts Services of the processes
required from planning to fulfilment.
Customer Response
Acal’s 25 offices in Western Europe staffed
with direct sales, sales support and
customer service personnel who have many
years experience of the varied purposes for
which our products and services are
required, ensure that response times are
both rapid and accurate.
Technical & Market
Knowledge
Acal sales teams possess in-depth
knowledge of their markets and customers
and are supported by technical and
application engineers to assist in some of
the most demanding requirements.
Pan-European Footprint
Acal’s pan-European coverage ensures that
service and support can be provided
wherever customers may be located in
Europe. This capability is also valuable to
suppliers who look for a common sales and
marketing message to the European market.
2006
2007
UK – 38%
Continental Europe – 59%
Rest of World – 3%
UK – 45%
Continental Europe – 53%
Rest of World – 2%
Geographic coverage of sales (excluding associates) extending our 
product portfolio...
Electronics Division
5 ACAL plc annual report and accounts for the year ended 31 March 2007
Acal’s largest division with sales of £108m and Europe’s
premier, technical, demand creation Electronic Component
distributor. With operations in 11 countries this business
has pan-European coverage, centralised logistics and local
customer interface.
The 2:1 ratio of Field Sales Engineer to Product
Management and Application Engineers is key to our
ability to service the demand creation role that is a major
differentiator between Acal and others in the sector.
Apart from the product knowledge/intellectual property
value-add, there is significant physical added value in the
form of semiconductor programming, microsystem
configuration and electromechanical component assembly,
all to provide bespoke solutions for our customers.
Our markets and customers
The customer profile of this division contains all the major
electronic equipment manufacturers in Europe as well as
thousands of SMEs and contract manufacturers. The market
place that these customers occupy is today extremely wide.
Having just 4/5 years ago been dominated by the major
telecommunication companies it is now spread across such
diverse activities as aerospace, broadcasting, metering,
medical, automation, transportation, communications,
industrial controls, motor controls and security.
Our suppliers and products
Our product profile is divided into seven generic groups:
Semiconductors Passive components
Power products Frequency control components
RF & Wireless Electromechanical components
Boards and Systems
We focus on a maximum of 10 specialist suppliers in each
of the above with an emphasis on specialist rather than
commodity product. Thus we have developed a high class
franchise portfolio which guarantees no overlap and
therefore a unique share of mind for our suppliers.
Our strategy
With the product profile now available, our sales and
marketing activities are geared to ensuring that we
succeed in promoting increasing numbers of products
with each new customer design. This strategy is enhanced
with the extension of our semiconductor portfolio which
accounts for in excess of 50% of the available electronic
components market.
Locations
United Kingdom
Belgium
France
Germany
Italy
Netherlands
Sweden
Norway
Finland
Denmark
Spain
Sales
£107.6m
EBIT
£3.5m
Sales and EBIT – Electronics Division expanding our
outsource solutions...
Parts Services Division
6 ACAL plc annual report and accounts for the year ended 31 March 2007
Acal Parts Services (APS) provides spare parts, logistics
planning and added value services to pan-European Field
Services organisations in the IT and ATM marketplace.
With offices in the UK and Germany, the Group sells and
manages stock in locations all over Europe and as far
afield as Australia, South Africa and the Americas.
APS has developed into a services based organisation that
has become an integral part of our customers’ supply
chain resulting from our ability to assess demand patterns
based on host equipment to be supported.
Our markets and customers
APS operates in three fields:
• Spare parts supply for field service organisations  
We work with our clients to ensure that the spare parts
they need to maintain their customers’ IT and ATM
infrastructure are always available.
• Added value distribution
We provide distribution and services such as warranty
management, engineering and performance reporting to
leading Printer and PC manufacturers.
• Refurbishment and re-sale
We help several of the leading OEMs to manage their
returned equipment and gain maximum financial return
by refurbishing and re-selling it for them.
Our products and suppliers
APS sources its products worldwide. Parts are tested and
backed by our quality assurance and warranty programmes.
We supply parts for everything from PCs right up to
Mainframe Computers. In the ATM field we sell parts for
the major brands and supply second user ATM machines
into emerging markets.
Our unique engineering expertise and quality standards
and the fact that we have become a ‘one-stop shop’ for
many of our customers has been one of the cornerstones
of our success.
Our strategy
APS has become a key part of our customers’ supply chain
and we see this outsourcing trend continuing and
expanding beyond IT and ATM hardware.
Locations
United Kingdom
Germany
Sales
£51.9m
EBIT
£3.0m
Sales and EBIT – Parts Services Division bringing business
solutions to the market...
IT Solutions Division
7 ACAL plc annual report and accounts for the year ended 31 March 2007
With annual sales at £100m Acal’s IT Solutions division 
is a technically led specialist distributor providing high
technology IT products and services to a wide range of
channel partners across Europe.
The division is focused on five main areas. Acal’s electronic
document management solutions, trading as Headway
Technology, provides document capture, storage and
display technologies. Acal Storage Networking provides
a range of connectivity products and software. Acal
Networking and Security supplies a wide range of
network and security products around wired and wireless
technologies. Acal Value Added Services (AVAS), our in-
house services group, provides installation, maintenance,
training and professional services and finally Vertec
operates exclusively in the medical field, providing
specialist scanning and diagnostic products.
In each case our business units provide a high level of
technical knowledge and advice to help our customers
tailor the right solutions to their business needs.
Our markets and customers
With the exception of Vertec, our IT business route to
market is focused on channel partners such as corporate
resellers, specialist integrators, OEMs, managed service
providers and VARs. In addition, we provide support at an
end user level to assist our customers in specifying the
right solution. Vertec is focused on direct sales to
hospitals, clinicians and health authorities.
Our suppliers and products
Our suppliers are market leaders in each field allowing
Acal to offer “Best of Breed” solutions to the market.
Many of our suppliers have a long term relationship with
Acal which results in a close working partnership at
development and production levels to ensure our
customers can purchase with confidence, knowing that
we and the suppliers are working as one 
in our customers’ interest.
Our strategy
The markets in each of our focused areas are showing
growth and our intent is to be a major supplier in these
sectors, supplying the best solutions from the best
manufacturers. Working in close relationship with both
our existing and appropriate new suppliers, Acal IT
Solutions will help bring the right business solutions to 
the market incorporating the latest technologies.
Whilst the IT business units are focused on Europe, 
UK-based Vertec has recently established an operation in
South Africa which has been identified as an area for
rapid growth of its products.
Locations
United Kingdom
Belgium
France
Germany
Netherlands
Scandinavia
Sales
£101.4m
EBIT
£4.0m
Sales and EBIT – IT Solutions Division Chief Executive’s review 
Acal has a great team of people – enthusiastic,
hardworking, motivated and always prepared
to go the extra yard for the customer.
8 ACAL plc annual report and accounts for the year ended 31 March 2007
The Group is a leading distributor of technology products and services for the electronics and IT industries
throughout Europe.
Performance review table
The performance of Acal’s divisions in each of the years ended 31 March 2007 and 2006 is set out below:
2007 2006
Sales EBIT* Sales EBIT*
as % as % as % as %
£m of Group £m of Sales £m of Group £m of Sales
Electronics 107.6 41% 3.5 3.3% 104.0 41% 2.4 2.3%
Parts Services 51.9 20% 3.0 5.7% 56.9 22% 5.2 9.1%
IT Solutions 101.4 39% 4.0 3.9% 96.1 37% 2.3 2.4%
260.9 100% 10.5 4.0% 257.0 100% 9.9 3.9%
* EBIT = Earnings before interest, tax, the Group’s share of profit of associates and exceptional items, stated after full
allocation of central costs.
increasing market 
A J Laughton 
Chief Executive
4 June 2007 9 ACAL plc annual report and accounts for the year ended 31 March 2007
Last year saw an increase in both sales and profits in the
two largest divisions, Electronics and IT Solutions and a
decline in Parts Services. In total the ongoing businesses,
after the sale in July 2006 of the Air Conditioning and
Refrigeration division, showed a small increase in sales, up
from £257.0m to £260.9m. More significantly however,
profit before taxation and exceptionals of ongoing
activities is up 14.0% from £8.6m in the prior year to
£9.8m. Again, this is due to the success of our Electronics
and IT Solutions divisions.
Electronics 
The only Pan-European Demand Creation Distributor
Sales up 3.5% from £104.0m to £107.6m
EBIT up 46% from £2.4m to £3.5m
Although the UK market for passive and electromechanical
components has been somewhat soft, growth continues
in this division with the success of our higher technology
products, primarily semiconductors, power and RF &
wireless products which have been, and remain, a prime
focus. Specialised semiconductors now account for an
increasing proportion of the division’s sales. The major
gains have been in Continental Europe as the expansion
of the product portfolio took place earlier there than in
the UK. There has also been significant investment in
people, particularly in Germany and Italy where in the
second half of the year we have recruited in excess of
twenty dedicated semiconductor staff. These comprise
Sales Directors, Field Sales Engineers, Application
Engineers and Product Managers
The restructuring process continues with further
consolidation of the UK passive and electromechanical
components businesses: Radiatron has now merged with
Acal Technology. Logistics (primarily inventory) is being
centralised into two principal locations, one at Hook in the
UK and the second in Eindhoven in the Netherlands.
In line with the growth of our higher technology products
our market share is increasing, as too is our customer base
which totalled nearly 9,500 Europe-wide by the end of
the year. This, together with our emphasis on the design
‘pipeline’ or funnel of prospects which continues to
increase, provides a clear indication of projects and
potential business in the future.
IED Jammer 
Improvised explosive devices (IEDs) have become the
single deadliest threat to personnel in Iraq and have
been employed by the Taliban in Afghanistan. 
Acal helped reduce that threat by providing technical
and commercial support to a customer that developed
technology to jam the communications that control
IEDs, thereby reducing bombings, assassinations and
other terrorist acts. 
Acal, through its RF expertise, helped select in this
instance, components and power supplies that are
used on both hand-held and vehicle-mounted IED
jammers. 
share... 10 ACAL plc annual report and accounts for the year ended 31 March 2007
Parts Services 
Europe’s premier IT Parts Management Company
Sales down 8.8% from £56.9m to £51.9m
EBIT down 42% from £5.2m to £3.0m
After an excellent prior year, 2006/7 proved to be difficult,
especially for CPI and particularly in the first half. This was
as a consequence of weaker demand, some price erosion
and cutbacks on a major contract. Despite this the division
has produced a creditable overall EBIT return of 5.7% of
sales after the allocation of central costs.
New ‘preferred supplier’ arrangements are being agreed
with several customers and the ‘opportunity funnel’ is
stronger than ever, although it can typically take some
while before these convert into new business. In addition,
following the acquisition of the minority interest in CPI we
have completed the integration of the sales and business
development teams of CPI and our other major UK IT
parts operation, EAF. We are now better positioned to
offer all the division’s services to existing and prospective
customers.
IT Solutions 
Europe’s Niche IT Solutions Distributor
Sales up 5.5% from £96.1m to £101.4m
EBIT up 74% from £2.3m to £4.0m
The outstanding successes here have been Networking
and Security product sales and Acal Value Added Services
(AVAS), but across the whole spectrum of this division the
stabilisation, and in some cases improvement, of gross
margins have had a major influence. This margin
improvement has come in part from a shift in product mix
to devices which have more capability and intelligence,
and in part from our focus of providing value added
solutions which can command higher unit prices than
discrete hardware and consequently better margins.
The Headway document management business, which has
experienced relatively flat sales year-on-year, improved its
profitability and is now embarking upon a number of new
initiatives which fit closely with its core focus. Although it
would be premature to forecast growth at this stage,
there is considerable optimism that these will lead to both
an increase in revenue and further margin improvement.
Bull SA
Bull is the premier European-based global IT supplier, 
with a worldwide presence in more than 100 countries. 
As an information technology company they are
dedicated to helping corporations and public sector
bodies develop open and secure information systems 
to sustain their business strategies.
CPI, part of Acal Parts Services, has had an enduring
relationship with Bull, working with the group since 1998.
Providing supply chain services to support Bull’s European
customer base with Intel to Hi-end server parts, this
relationship has developed and expanded over time to
include multi-vendor inventory management and repair
services.
CPI’s relationship with Bull has progressed dramatically
over the years and it now works on a contractual basis
with Bull in 12 European Countries.
best of breed solut 11 ACAL plc annual report and accounts for the year ended 31 March 2007
Similarly the Storage Networking business had flat sales
but also improved its profitability significantly. Again, this
is largely due to a gradual shift to more advanced higher
value products that command better margins.
Lastly, Vertec, our medical imaging and instrumentation
business, again put in a strong performance with an
improvement in both sales and net margins. Vertec has
now established an operation in South Africa with the
same key suppliers that it has worked with in the UK for
many years. It is anticipated that this operation will quickly
move into profit, benefiting from the reputation of its key
suppliers and the market momentum behind private
healthcare in that country.
Associates
Acal’s major associate, Singapore-based Westech, in which
we have a 36% shareholding, increased sales and profits
in its year ended 31 December 2006 with sales up 65% 
to S$330.2m and net profits up 69% to S$6.1m.
ACAL people
Acal has a great team of people – enthusiastic,
hardworking, motivated and always prepared to go the
extra yard for the customer. As importantly, they are very
supportive of the fact that change is the norm rather than
the exception in our industries. This is a spirit which
stands us in good stead for the future and provides a
great deal of confidence in our ability to succeed.
I would like to express my appreciation and thanks to
them all.
More House School 
More House school is an independent boarding
school for boys with specific learning difficulties.
Constant network access is essential to enable
students to keep up their studies and given the risk
of server failure in the evening or at weekends the
school needed a solution to enable IT managers to
manage and reboot servers remotely. 
Acal IT Solutions offered expert knowledge to
propose and implement the most effective solution
through the application of Lantronix’s Secure Linx™
Remote Data Centre Management Solutions. 
Students, teachers and parents alike now benefit
from improved network access.
ions... Average gross margin for the Group’s ongoing
activities during the year to 31 March 2007 was
25.4%, slightly ahead of 25.3% for the previous year. 
Finance Director’s review
pan-european foot
12 ACAL plc annual report and accounts for the year ended 31 March 2007
Results for the year
Following the sale of the Group’s Air Conditioning and
Refrigeration (‘AC&R’) business, which was announced in
May 2006 and completed in July 2006, that business has
been described as ‘disposed activities’ and the remainder
of the Group’s business as ‘ongoing activities’ in the
financial statements for the year ended 31 March 2007.
Sales of the Group’s ongoing activities increased from
£257.0m in 2006 to £260.9m for the year ended 31
March 2007, an overall increase of 1.5%. This overall
increase represented an increase of 3.5% for the
Electronics division, an increase of 5.5% for the IT
Solutions division and a decline of 8.8% for the Parts
Services division. Earnings before interest, tax, the Group’s
share of associated companies and exceptional items
(‘EBIT’) increased from £9.9m in the prior year to £10.5m
for the year ended 31 March 2007, an increase of 6.1%.
Both the Electronics and IT Solutions divisions showed
significant increases in EBIT of 46% and 74% respectively,
but the Parts Services division decreased by 42%. Further
information on each division’s performance is set out in
the Chief Executive’s Review. 
Although most international business in the electronics
industry is denominated in US dollars, the principal
exchange rate which affects the translation of the results
of the Group’s non-UK activities is that between the Euro
and Sterling. During the year under review, Sterling was,
on average, marginally (0.6%) stronger against the Euro print...
13 ACAL plc annual report and accounts for the year ended 31 March 2007
Jim Virdee
Finance Director
4 June 2007
and 7.3% stronger against the US dollar as compared to
the previous year. Consequently variations in exchange
rates had an insignificant effect on the translation of
Acal’s sales and profits for the year to 31 March 2007
relative to those for the prior year.
Average gross margin for the Group’s ongoing activities
during the year to 31 March 2007 was 25.4%, slightly
ahead of 25.3% for the previous year. Whilst all activities
in the Electronics and IT Solutions divisions showed an
improvement in gross margins, there was a decline in the
Parts Services division resulting from a lower level of
contracted business.
Net operating expenses of the Group’s ongoing activities,
excluding exceptional items, were £55.6m for the year
ended 31 March 2007 (2006: £55.2m). Although the
average number of employees working in Acal’s ongoing
activities during this period, at 954, was unchanged from
that for the previous year, there was significant underlying
change. There were some manning reductions in the
passive and electromechanical activities of the Electronics
division and the Parts Services division, but we have
continued to invest in additional resources to support the
Group’s strategy of expanding its specialist semiconductor
portfolio, in particular the establishment of dedicated
teams, together comprising over 20 members, for these
products in Germany and Italy during the second half of
the year. Overall the Group has continued to maintain
good control over operating costs.
The exceptional item of £0.4m in the year to 31 March
2007 represented the recovery of a receivable which was
previously considered impaired and hence provided
against. In the prior year there were two exceptional
items, a profit of £0.6m on sale of investments and the
cost of £0.8m of withdrawing from part of the IT
Solutions business.
Acal’s principal associated company is Westech Electronics
Limited. It distributes electronic components throughout
the Far East region, excluding Japan, and has its head
office in Singapore. Westech’s sales grew from S$255m
(approximately £86.3m) for the year ended 31 March
2006 to S$321m (approximately £108m) for the year
under review. In the corresponding periods the Group’s
share of profits of associate companies, which under
International Financial Reporting Standards is reported
after tax, increased from £0.4m to £0.6m.
Although interest rates were higher, average net debt
during the year was lower and accordingly net interest
cost at £1.1m (before IAS19 financing cost of £0.2m) was
lower than the previous year’s figure of £1.6m (before
IAS19 financing cost of £0.1m). Thus net interest cost was
covered 9.5 times (2006: 6.2 times) by operating profit
(before exceptional items) arising from the Group’s
ongoing activities. Overall the Group has continued to maintain
good control over operating costs. 
unparalleled exper
14 ACAL plc annual report and accounts for the year ended 31 March 2007
The Group’s effective tax rate for the year to 31 March
2007, calculated on the basis of profit before taxation
excluding the Group’s share of post-tax profit from
associates was 33.0% (2006: 33.8%).
The table below explains the effect of the Group’s
disposed (AC&R) activities on the results for the year.
The retained obligations referred to in the table above
related to people, properties and IT systems.
In October 2006, Acal purchased the 28.4% minority
interest in Computer Parts International Limited, which is
part of the Parts Services division, for a consideration of
approximately £6.7m. Hence the minority interest in the
Group’s profit ceased to arise from that time onwards.
Acal’s earnings per share from ongoing activities, before
exceptional items, were 25.0p for the year ended 31 March
2007 as compared to 19.6p for the year before, an
increase of 27.6%. Basic earnings per share, including
disposed activities, were 44.4p (2006: 22.3p).
The interim and proposed final ordinary dividends in
respect of the year to 31 March 2007 will absorb £5.8m
(2006: £5.7m). These are covered 2.0 times (2006: 1.0
times) by basic earnings, including disposed activities, and
1.1 times (2006: 0.9 times) by earnings from ongoing
activities before exceptional items.
Working capital and balance sheet
The Group continues to place particular emphasis on the
management of working capital. For this purpose it uses 
a model which compares each item of trading assets to
the three-month moving average of sales (TMMA). The
table below shows the target model in comparison to the
actual achievement.
The above table shows, for example, that our target is for
stock to represent 1.2 months of sales and the actual level
of stock at 31 March 2007 represented 1 month of sales. 
31 March 31 March
Target 2007 2006
Ongoing activities TMMA ratio TMMA ratio TMMA ratio
Trading fixed assets 0.5 0.5 0.5
Current assets:
Stock 1.2 1.0 0.9
Debtors 2.3 2.4 2.4
Current liabilities:
Creditors (2.2) (2.5) (2.4)
Tax (0.1) (0.1) (0.1)
Total trading assets 1.7 1.3 1.3
Note: This trading assets model excludes goodwill, investments, 
non-current tax assets, net debt/cash and long-term liabilities.
Before tax Tax After tax
£m £m £m
Trading profit for 
the period 0.4 (0.2) 0.2
Profit on disposal 6.0 (0.1) 5.9
Provision for retained 
obligations (1.8) 0.5 (1.3)
Total trading assets 4.6 0.2 4.8 tise...
15 ACAL plc annual report and accounts for the year ended 31 March 2007
The level of working capital at 31 March 2007 had
benefited from a number of short-term factors which
were not sustainable and reversed in the period after the
year-end. This effect is estimated to have amounted to
around £4m to £5m and was reflected in the net debt of
£5.4m (2006: £6.5m) at the year-end. As reported last
year there was a similar short-term benefit of between
£8m to £9m at 31 March 2006.
The Group’s debt is provided principally under bilateral
bank facilities negotiated centrally in the UK and locally in
territories where Acal operates. There are committed long-
term facilities of £25m available to the Group as well as
short-term facilities which are used mainly for working
capital requirements.
Capital expenditure for the year to 31 March 2007 was
£2.2m (2006: £2.5m) and the charge to profits in respect
of depreciation and amortisation of fixed assets amounted
to £3.1m (2006: £3.2m) for the same period.
It has always been Acal’s policy that its pension schemes
should be of the defined contribution type so that the
extent of the Group’s financial liabilities can be clearly
ascertained. However, when Sedgemoor Limited, then a
listed public company, was acquired in June 1999, it
brought with it certain defined benefit schemes, the
principal one of which was the Sedgemoor Group Pension
Fund (together ‘the Sedgemoor Scheme’). Soon after
acquisition the Sedgemoor Scheme was curtailed and all
future service accrual ceased. A triennial actuarial
valuation of the Sedgemoor Scheme was conducted as at
31 March 2006. At that date the gross pension liability
under IAS19 was £9.1m and net of the relevant deferred
tax it was £6.4m.
Primarily as a result of movements in bond yields, but also
the contributions made since then, the gross liability at 31
March 2007 was £7.4m and net of the relevant deferred
tax it was £5.2m.
Shareholders funds at 31 March 2007 were £75.8m
(2006: £69.9m), the improvement from last year primarily
reflecting retained earnings. Net debt at that date
represented 7.1% of shareholders funds as compared to
9.3% a year earlier.
Return on Capital Employed
Return on average capital employed of the Group’s ongoing
activities, which is calculated using operating profit before
exceptional items and net assets excluding goodwill but
adding back net debt, was 40% for the year to 31 March
2007 as compared to 31% for the year before. Directors
16 ACAL plc annual report and accounts for the year ended 31 March 2007
Richard Moon 
Non-executive Chairman
Joined the Board in September 2004 and became
Chairman in April 2005. He was formally a director of
Racal Electronics plc and Chief Executive of Thales plc. He
holds non-executive positions in a number of companies.
A J Laughton
Chief Executive
Founded his first electronic component business in 1975.
This became the forerunner of Centre Industries which in
turn became part of Acal in 1987. Initially he was Chief
Operating Officer, then Managing Director and has been
Chief Executive since August 2001.
E A Barton MA
Non-executive Director
Appointed August 2002, was a director of 3i plc between
1986 and 1999. He has experience as a Non-executive
Director across a number of public and private companies. 
Audit Committee
E A Barton
G J Williams
Remuneration Committee
G J Williams
E A Barton
R J Moon
Nomination Committee
R J Moon
E A Barton
G J Williams
A J Laughton
J S Virdee FCA MA MSc
Finance Director
Was director of Kleinwort Benson Limited (now Dresdner
Kleinwort Wasserstein) until 1989. Before joining Acal in
1993, he was finance director of Grosvenor Estate
Holdings and Sycamore Taverns Limited.
G J Williams MBA CA
Non-executive Director
Appointed December 2003, gained his early business
experience in private equity with Charterhouse and
Barclays Private Equity, both in the UK and France. He 
was on the Board of Hays plc for 19 years both as a
private and public company. Financial contents and corporate information
17 ACAL plc annual report and accounts for the year ended 31 March 2007
Secretary and registered office
N Rowe MA LLM ACIS
2 Chancellor Court
Occam Road
Surrey Research Park
Guildford
Surrey GU2 7AH
Registered number 2008246
Stockbrokers
JPMorgan Cazenove
Principal bankers
Barclays Bank PLC
Lloyds TSB Bank plc
Auditors
Ernst & Young LLP
Registrars
Lloyds TSB Registrars
Financial calendar 2007/2008
Annual General Meeting 19 July 2007
Results
Interim report for the six months
to 30 September 2007 Late November 2007
Preliminary announcement 
for the year to 31 March 2008 Early June 2008
Annual Report 2008 Late June 2008
Dividend payments
Final dividend 2006/2007 25 July 2007
Interim dividend 2007/2008 Late January 2008
Final dividend 2007/2008 Late July 2008
Financial contents
Directors’ report 18
Board report on corporate governance 20
Directors’ remuneration report 24
Corporate social responsibility 28
Statement of directors’ responsibilities 29
Report of the auditors – Group 31
Consolidated income statement 33
Consolidated statement of recognised 
income and expense  34
Consolidated balance sheet 35
Consolidated cash flow statement 36
Notes to the group financial statements 37
Report of the auditors – Company 69
Company balance sheet 71
Notes to the company financial statements 72
Five year record 77
Notice of annual general meeting 78
Principal locations 80 18 ACAL plc annual report and accounts for the year ended 31 March 2007
The Directors present their Annual Report with the audited financial statements for the year ended 31 March 2007.
Business review and principal activities
Acal plc is the parent company of a sales, marketing and services group with three divisions: Electronics, IT Solutions and
Parts Services. During the year the Group disposed of its Air Conditioning and Refrigeration business to Parker Hannifin
Corporation. There were no other major changes to the Group’s activities during the year under review. On a regular basis
the Board reviews all businesses within the Group to ensure that its strategy is being delivered and to examine other
opportunities to enhance shareholder value. At the date of this report the Board had taken no decisions which could result
in any significant changes in activities during the current financial year.
The key measures of the performance of the Group relate to the level of sales, gross margins, net margins and the return
achieved on the capital employed.
During the year the Group’s turnover on ongoing activities increased by 1.5% over the prior year whilst profit before tax on
ongoing activities before exceptional items increased by 14%. Return on capital employed was 40% as compared to 31%
in the previous year. The balance sheet as at the year-end and the equivalent statement as at 31 March 2006 are shown on
page 35. Further detailed analyses of the performance of the Group’s businesses over the year are contained in the Chief
Executive’s Review and Finance Director’s Review on pages 8 to 15.
Principal risks and uncertainties
The principal risks and uncertainties affecting the Group are:
a) the state of the markets in which it operates and the competitive pressures within those markets;
b) the strength of relationships with major suppliers and customers and
c) the ability to recruit, retain and motivate key employees.
In developing its strategy and plans Acal takes full account of the need to minimise any adverse impact of the risks
associated with its business.
Results
The results of activities of the Group for the year to 31 March 2007 are set out in detail in the consolidated income
statement on page 32. A review of the results and future developments is included in the Chairman’s Statement, the
Chief Executive’s Review and the Finance Director’s Review.
The Directors recommend a final dividend of 14.7p per share (2006: 14.4p). The final dividend together with the interim
dividend of 7.2p (2006: 7.2p) makes a total dividend for the year of 21.9p per ordinary share (2006: 21.6p). The total
dividends on ordinary shares will absorb £5,786,000 (2006 £5,706,000).
The Directors have taken all steps that they ought to have in order to make themselves aware of any relevant audit
information and to establish that the Company’s auditors are aware of that information. As far as the Directors are
aware there is no relevant audit information of which the Company’s auditors are unaware.
Fixed assets
The Directors are of the opinion that the market value of land is not significantly different from its book value.
Directors
The current directors of the Company are detailed in the Corporate Governance Report on page 20. Directors’
remuneration, service contracts and interests are disclosed in the Directors’ Remuneration Report on pages 24 to 27.
Issue of shares under share option schemes 
A total of 1,500 ordinary shares were issued during the year on exercise of options under the Group’s executive share
option scheme.
Substantial shareholdings
As at 4 June 2007 the Company had been notified of the following major shareholdings (in addition to those of 
Mr A J Laughton which are shown in the Directors’ Remuneration Report) equal to or in excess of three per cent 
of the issued share capital.
Directors’ report 19 ACAL plc annual report and accounts for the year ended 31 March 2007
Holdings of 
ordinary shares (5p)
Aberforth Partners LLP 3,454,000
J A H Curry 3,225,000
Artemis Investment Management Ltd 1,621,631
Herald Investment Trust plc 1,042,196
Capital Group International Inc 1,041,115
M&G Investment Funds 3 1,400,000
Legal & General Investment Management Ltd 1,005,811
In certain cases the holdings above are for investment management clients of the groups specified.
Donations
During the year no donations (2006: £1,600) were made by Group companies for charitable purposes. No contributions
(2006: £nil) were made for political purposes.
Auditors
A resolution is to be proposed at the forthcoming Annual General Meeting for the re-appointment of Ernst & Young LLP
as auditors of the Company.
Employment policies
The Group is committed to the principle of equal opportunity in employment. Employment policies are fair, equitable and
consistent with the skills and abilities of the employees and the needs of the Group’s business. These policies ensure that
everyone is accorded equal opportunity for recruitment, training and promotion. Where an employee becomes disabled
whilst employed by a Group company, every effort is made to allow that person to continue in employment.
It is Group policy to communicate with employees on major matters to encourage them to take an interest in the affairs
of their employing company and the Group. It is the responsibility of each of the Group’s operating companies to develop
effective arrangements in this regard.
Environment
Acal plc recognises the importance of its environmental responsibilities which are more fully stated in the corporate
social responsibility statement on page 28.
Supplier payments
The Group makes arrangements for payment of suppliers in the ordinary course of its business, taking into account local
good practice. It is the Group’s policy to adhere to agreed arrangements, which can vary from supplier to supplier and
territory to territory, when goods or services have been delivered satisfactorily.
Trade creditors of the Group at 31 March 2007 were equivalent to 69 days purchases (2006: 74). The Company has no
trade creditors.
Use of financial instruments
A statement in relation to the use of financial instruments by the Group is shown in note 28 to the Accounts on page 59.
Special business at the annual general meeting
At the Annual General Meeting to be held on 19th July 2007, a total of three resolutions comprising items of special
business will be proposed:
(a) Resolution 7 would renew the authority for the Company to purchase its own shares. The maximum number of shares
capable of being purchased under the proposed authority is 2,600,000 ordinary shares of 5p each (representing
approximately 10% of the issued share capital of the Company) at a price not exceeding (a) 105% of the average
middle market quotation for an ordinary share derived from the London Stock Exchange Daily Official List for the five
business days immediately preceding the day on which the purchase is made and at a price not less than 5p per
ordinary share and (b) that stipulated by Article 5(1) of the Buyback and Stabilisation Regulations 2003. Such authority
shall expire on the earlier of the next Annual General Meeting of the Company or 15 months from the passing of the
resolution. The Directors have no present intention of exercising this authority. Any authority granted would only be
exercised if the Directors had an expectation that such purchase would result in an increase in earnings per share and
would be in the best interests of shareholders generally.
(b) Resolution 8 would authorise the Directors to issue authorised but unissued share capital of the Company of up to
8,800,000 ordinary shares of 5p each (being approximately 33% of the existing issued ordinary share capital). The
Directors have no present intention of exercising this authority.
(c) Resolution 9 would disapply the pre emption provisions of Section 89 of the Companies Act 1985 to allow the
Directors to allot equity securities up to an aggregate nominal amount of £66,000 (being approximately 5% of the
existing issued ordinary share capital of the Company) for cash otherwise than pro rata to existing shareholders.
By order of the Board 2 Chancellor Court
N Rowe Occam Road
Secretary Surrey Research Park
4 June 2007 Guildford
Surrey GU2 7AH
Directors’ report continued 20 ACAL plc annual report and accounts for the year ended 31 March 2007
The Acal Group is committed to effective corporate governance and continues to operate principles and procedures that
are appropriate to its business. This statement describes how Acal applies the principles of the revised combined code
(the ‘Code’) by considering each of the main headings included within the Code. Acal complied with all provisions of the
Code throughout the year to 31 March 2007.
The Board
Acal is led by a strong and experienced Board with a broad range of business and financial skills. Throughout the year
under review it consisted of Mr R J Moon as Non-Executive Chairman, Mr A J Laughton as Chief Executive, and 
Mr J S Virdee as Finance Director together with Messrs E A Barton and G J Williams as Non-Executive Directors. The 
size and composition of the Board is considered to be appropriate to the Group’s business at present although this is
kept under review by the Nomination Committee.
The Board operates within a framework of controls used to minimise the adverse impact of any risks, including a formal
schedule of matters reserved for its decision. These are matters of a material nature and include the determination of the
Group’s overall strategy, the approval of financial statements, dividends, significant accounting policies, annual operating
plans, significant financial matters, major capital expenditure and any litigation of a material nature. The schedule is
reviewed on a regular basis. The Non-Executive Directors challenge management proposals where appropriate and
carefully monitor management performance and reporting throughout the year. 
Certain matters are as detailed below, delegated to the Audit, Remuneration and Nomination committees. The Board
also has a General Purposes Committee consisting of any two directors of the Company which has delegated authority
to approve certain defined and routine matters between Board meetings. The Board met formally on six occasions during
the year to 31 March 2007, with all directors attending all meetings. All directors also attended the meetings of all
committees on which they serve. 
The Company maintains appropriate Directors’ and Officers’ liability insurance.
Chairman and Chief Executive
The Company has both a Chairman and Chief Executive. There is a clear division of responsibilities which has been
agreed by the Board and is available from the Company on request. The Chairman is responsible for running the Board
which includes the operation of the Board’s overall procedures, providing a forum for constructive discussion and
ensuring receipt of clear and timely information. The Chief Executive is responsible for the management of the Group’s
businesses and reporting their progress to the Board. Major decisions have to be made by the Board as a whole, and no
one individual has unfettered power of discretion.
Board balance and independence
As noted above the Board currently comprises two Executive Directors and, including the Chairman, three Non-Executive
Directors. Each director has a role, and no individual or small group of individuals determines the Board’s decision-making.
No Non-Executive Director who served during the year:
• has been an employee of the Group within the last five years;
• has, or has had within the last three years, a material business relationship with the Group;
• receives remuneration other than a director’s fee;
• has close family ties with any of the Group’s advisers, directors or senior employees;
• holds cross-directorships or has significant links with other directors through involvement in 
other companies or bodies; or
• represents a significant shareholder; and
• has served on the Board for more than nine years. 
The Non-Executive Directors of the company are, therefore, considered to be independent. 
Mr E A Barton is the Senior Independent Director and is available to shareholders should they have concerns that 
cannot be resolved through other channels. 
The Chairman meets with the Non-Executive Directors, but without the Executive Directors present, as and when
required. The Non-Executive Directors meet when required without the Chairman present and, as stated below, the 
Senior Independent Director leads the process of appraising the Chairman’s performance in conjunction with the 
other Non-Executive Director.
Appointments to the Board
The Nomination Committee leads the process for ensuring that an appropriate balance of skills is retained on the Board
and appropriate succession planning is in place.
The Nomination Committee is chaired by Mr R J Moon. The Company’s two Non-Executive Directors and the Chief
Executive are the other members of the Committee. 
Before any appointment to the Board is considered, a job specification is prepared and agreed by the Nomination
Committee. Unless the appointment is as an Executive Director for which a suitable candidate is available from within
the Group, appropriate executive search or other organisations with databases of candidates are consulted before a
Board report on corporate governance 21 ACAL plc annual report and accounts for the year ended 31 March 2007
short-list of suitable candidates is produced for agreement by the Nomination Committee. Candidates meet all members
of the Nomination Committee which then makes recommendations to the Board. All members of the Board would
usually meet with the relevant candidate before an appointment is finally made.
On the appointment of Mr R J Moon as Chairman an assessment was made of the time commitment expected and 
Mr Moon’s other significant commitments. Mr Moon continues to hold non-executive positions with Planet Holdings
Limited, Oxford Bio-Signals Limited, t+ Medical Holdings Limited and Software Radio Technology plc. 
The Nomination Committee met formally once during the year. The terms of reference for the Nomination Committee
are available on request.
Information and professional development
Papers are circulated well in advance of Board and Committee meetings, and directors are invited to request such further
information as they may require ensuring that proper consideration can be given to all matters. Between meetings,
directors are kept abreast of progress by circulation of monthly reports together with ad hoc meetings and briefings as
and when required. Copies of management committee meetings, press announcements and stockbrokers’ reports to
which the Company has access, are also circulated to the Board. A procedure is in place whereby directors may have
access to independent professional advice at the Company’s expense and directors have access to the advice and services
of the Company Secretary. The appointment or removal of the Company Secretary would be a matter for the Board as a
whole. An induction process is in place for any new director joining the Board which would include meeting with the
Company’s senior management and visits to key locations as well as a comprehensive briefing pack. 
Performance evaluation
During the year the Board repeated the process of evaluating its own performance, together with that of its Committees
and individual directors, including the Chairman. Each director is asked to prepare an appraisal of each of these areas. The
Chairman co-ordinates discussion with individual directors as to their performance and the Senior Independent Director
co-ordinates discussion with the Chairman. The results of the process are then summarised for presentation to the Board
and areas for improvement identified. These are then discussed by the Board as a whole and any necessary action taken.
Re-election of directors 
The Company’s Articles of Association require that one third of the directors retire by rotation each year and seek 
re-election. In addition, any director appointed by the Board must retire and seek re-election at the next Annual General
Meeting. It is Acal’s policy to operate these provisions in a manner which ensures that each director faces re-election at
least once every three years.
At the next Annual General Meeting of the Company, resolutions will be proposed for the re-election of Mr R J Moon
and Mr J S Virdee. Having taken into account the formal evaluation of their performance, the Board believes that both
make an effective contribution to the Board, demonstrate commitment to their roles and can be recommended for re-
election. Biographical details are shown on page 16.
The level and make-up of Directors’ remuneration
The level and make-up of directors’ remuneration is set out in the Directors’ Remuneration Report. As this shows, a
proportion of Executive Directors’ remuneration is linked to corporate performance through the Annual Bonus Scheme
and the Executive Share Option Scheme.
Procedure on Board remuneration
The remuneration of the Executive Directors is the responsibility of the Remuneration Committee, as is more fully
described in the Directors’ Remuneration Report. The remuneration of the Non-Executive Directors is determined by the
Non-Executive Directors’ Remuneration Committee which consists of the Executive Directors. No director is involved in
deciding his own remuneration.
Financial reporting
The directors have acknowledged in the Statement of Directors’ Responsibilities their responsibility for preparing the
financial statements of the Company and the Group. The Auditors have included in their report a statement of their
responsibilities. The directors are also responsible for the publication of the interim report of the Group, covering the 
first six months of the year, which in their opinion provides a balanced and understandable assessment of the Group’s
financial performance and position. 
Having taken into account the cash flow projections of the Group and the banking facilities available to it, the directors
are satisfied that it is appropriate to prepare the financial statements on a going concern basis.
Internal controls
The Combined Code includes a requirement that the Board reviews the Group’s system of internal controls. This
requirement covers all controls including operational, compliance and risk management as well as financial controls.
Formal guidance on the review of non-financial controls was published by the Institute of Chartered Accountants in
England & Wales in September 1999 and subsequently revised in October 2005, following which the Board approved a
framework for the implementation of this guidance. The relevant procedures have been in place throughout the year
ended 31 March 2007 and up to the date of this annual report.
Board report on corporate governance continued 22 ACAL plc annual report and accounts for the year ended 31 March 2007
The Board has overall responsibility for the Group’s system of internal controls and regularly reviews the effectiveness of
the system. Whilst no system of controls can provide absolute assurance against material misstatement or loss, the
Group’s system is designed to provide reasonable assurance that any problems are identified on a timely basis and dealt
with appropriately. In establishing and reviewing the system of internal controls, the Audit Committee, on behalf of the
Board, has regard to the significance of the risks involved, the likelihood of a loss being incurred and the costs of the
relevant controls.
The foundation of the Group’s system of internal controls is the value which it places on the quality and integrity of its
employees. Its principal components are:
• a clearly defined organisation structure with short and clear reporting lines;
• an ongoing process for the identification, regular review and management of the principal risks and issues 
affecting the business, both at Group and operating levels;
• a regular review of the principal suppliers and customers of the Group, and how each impacts upon the 
Group’s business;
• a comprehensive planning process which starts with a strategic plan and culminates in an annual budget;
• regular forecasting throughout the year of orders, sales, profitability, cash flow and balance sheets;
• regular review of actual performance against budget and forecasts;
• clearly defined procedures for the authorisation of major new investments and commitments;
• a requirement for each operating company to maintain a system of internal controls appropriate to its own 
local business environment.
In addition to the above, and on an annual basis, all operating companies undertake a comprehensive review of the
effectiveness of their internal controls. The results of these reviews are then consolidated before being considered by the
Audit Committee and the Board.
The above procedures encompass Acal plc and its subsidiary companies, but do not include the Group’s associated
undertakings which operate their own individual systems of internal control. Acal endeavours to persuade associated
undertakings to comply with similar standards of internal control to its subsidiaries.
The Board receives regular submissions from management concerning the matters set out above and other matters
relevant to internal controls and the identification, evaluation and management of risk. In addition, the Audit
Committee, on behalf of the Board, has conducted a specific annual review of the effectiveness of the Group’s system of
internal controls and risk management. The Group has embedded internal control and risk management into the
operations of the business and continues to deal with areas of improvement which come to the attention of
management and the Board. The Audit Committee, on behalf of the Board, has further considered the need for separate
internal audit personnel and concluded that this is not necessary at present as the objectives, processes and
responsibilities of such a function have been built into the review, control and monitoring roles of financial managers
who are based at Head Office and are independent of operating entities for which they have responsibility. In addition,
the external auditors report to the Audit Committee on any inconsistencies between what they find in the course of
their work and the internal control system of the Group. 
Audit committee and auditors
The Audit Committee is comprised of Mr E A Barton, who is the Chairman, together with Mr G J Williams. The Finance
Director attends meetings although no Executive Director has a right of attendance. The Board is satisfied that both
members of the Committee have recent and relevant financial experience. In addition Mr G. J. Williams is a qualified
chartered accountant.
The Committee is responsible for reviewing the scope and results of the audit, the accounting policies and systems of
internal control of the Group as well as the effectiveness and cost-efficiency of the audit. In addition it considers and
monitors the independence and objectivity of the auditors as well as the extent of any non-audit services provided by the
auditors and the need or otherwise for an internal audit function. The interim statement, the preliminary announcement
of results and the annual financial statements are considered by the Audit Committee prior to their approval by the
Board. The Chairman of the Audit Committee maintains direct communication with the external auditors, independently
of the management of the Company.
Board report on corporate governance continued 23 ACAL plc annual report and accounts for the year ended 31 March 2007
The Audit Committee met on three occasions during the year and its principal activities during the period included:
• a review of the interim and full year results;
• a review of the internal control and risk management systems of the Company;
• a review of the scope and results of the external audit;
• ensuring the continued independence and objectivity of the external auditors, including the understanding of 
the external auditors’ own standards and procedures for maintaining the independence and reviewing the level of
non-audit services provided by the auditors in order to ensure that these were not significant enough to prejudice 
their independence and objectivity;
• a review of the need for an internal audit function;
• reviewing the performance of the external auditors and making a recommendation as to their re-appointment.
• a review of arrangements whereby staff may raise, in confidence, any concern they may have about possible
improprieties.
Part of at least one meeting a year is held with only representatives from the external auditors’ present providing an
opportunity for any concerns to be raised without executive management present.
The Chairman of the Audit Committee reports to the Board on any significant matters arising from the activities of the
Committee.
The only non-audit services provided by Ernst & Young LLP relate to certain aspects of taxation. The Committee has
formed the view that given the size of the Company and the detailed level of understanding of the Group’s business that
is required, the provision of these specific tax services by a third party is inappropriate. As stated above, however, the
matter is monitored by the Committee to ensure that Auditors’ objectivity and independence is not prejudiced.
The Audit Committee has written terms of reference which are available on request.
Dialogue with institutional shareholders
The Board believes that it is an important part of its responsibilities to maintain effective and timely communications with
the Company’s shareholders and institutional investors. The Company’s Annual Report includes a statement from the
Chairman, a review by the Chief Executive and a financial review by the Finance Director. At the half year an Interim
Report is published.
Throughout the year regular meetings are held with institutional shareholders as well as stockbroking analysts. These
meetings would include discussion of governance and strategy as required and it is the responsibility of the Chairman to
ensure that shareholder views are communicated to the Board as a whole. Investor relations information as well as
presentations and news releases are made available on the Company’s website (address: www.acalplc.co.uk). Members
of the Board and the Chairman of the Remuneration and Audit Committees are available at the Annual General Meeting
to answer any questions and throughout the year the Company responds to any questions from shareholders generally.
The Senior Independent Director is available to deal with issues which cannot be resolved through the Chairman or
executive management.
Any feedback received by the Company from meetings with institutional shareholders and stockbroking analysts is
discussed at financial management meetings and the relevant minutes are circulated to the Board. Periodically the
Company’s stockbrokers and public relations advisers follow up meetings held with institutional investors and
stockbroking analysts in order to try and obtain feedback on these meetings which may not have been provided directly
to the Company. The results of such follow-up discussions are circulated to the Board.
Annual General Meeting
The level of proxy voting together with the number of votes cast for and against each resolution together with abstentions
will be made available at the AGM after voting is completed on a show of hands and will be published on the Company’s
website. A separate resolution has been presented on each substantially separate issue and the Chairman of each Board
Committee will attend the meeting. The proxy form relating to the AGM includes an option for votes to be withheld.
Notice of the meeting has been sent to shareholders at least 20 working days before the meeting.
Board report on corporate governance continued 24 ACAL plc annual report and accounts for the year ended 31 March 2007
This report has been prepared in accordance with the provisions of Schedule 7A of the Companies Act 1985. It also
meets the relevant requirements of the Listing Rules of the UK Listing Authority and describes how the Board has 
applied the principles of Good Governance relating to directors’ remuneration. As required by regulation, a resolution 
to approve the report will be proposed at the Annual General Meeting of the Company at which the financial
statements will be approved.
Unaudited information
Remuneration committee
The Remuneration Committee comprises Mr G J Williams as Chairman of the Committee, Mr E A Barton, and 
Mr R J Moon. The Committee determines the remuneration of Executive Directors on behalf of the Board and keeps
remuneration payable to other members of the senior management team under review. The Committee held two 
formal meetings during the year to 31 March 2007, and its terms of reference are available on request.
The Committee takes advice from external consultants as and when it is deemed necessary. During the year under
review the Committee took advice from Halliwell Consulting who they appointed for this purpose. It is the Committee’s
policy that any consultants that are used do not provide other services to the Acal Group. The Committee also took
advice from the Group Chief Executive in relation to the benefits of other senior executives in the Group.
Remuneration of the Executive Directors centres on ensuring that packages are sufficiently competitive in both fixed and
variable terms to attract, retain and motivate senior management of the right calibre. To achieve this, it is necessary to
provide packages that reflect individual experience and performance as well as taking account of local market practice
and the specific characteristics of the Company. The ability to recruit high quality staff in new and higher technology
areas is critical to the Group’s growth. The four main elements of the remuneration package for Executive Directors 
and senior management are:
• Basic annual salary and benefits
• Annual bonus payments (short-term incentives)
• Share Option Incentive Schemes (long-term incentives)
• Pension arrangements
Each of the above is described in detail below.
Executive Directors may accept non-executive appointments outside the Company with the consent of the Board. The
Board requires to be satisfied that the time commitment involved is consistent with the responsibilities of the relevant
Executive Director. Where fees from such appointments are not required to be accounted for to the Company, the
relevant time commitment is taken into account in determining the relevant director’s remuneration.
The remuneration of the Non-Executive Directors is determined on behalf of the Board by the Non-Executive Directors’
Remuneration Committee. The Committee consists of Mr A J Laughton as Chairman and Mr J S Virdee. Fees paid to
Non-Executive Directors are set out in the audited section below.
It is not envisaged that remuneration policy for the year to 31 March 2008 will differ materially from that which applied
during the year under review.
Salaries, fees and benefits
An Executive Director’s basic salary is reviewed by the Committee prior to the beginning of each year and when an
individual changes position or responsibility. In deciding appropriate levels, the Committee considers the role and
responsibilities of the relevant director as well as his experience and performance, and if considered necessary takes
appropriate external advice. In addition to basic salary, the Executive Directors receive certain benefits-in-kind, principally
comprising a car or car allowance, life assurance and private medical insurance.
Fees for Non-Executive Directors are determined by the Non-Executive Directors’ Remuneration Committee having regard
to fees paid to Non-Executive Directors in other similarly sized UK quoted companies, the time commitment and the
responsibilities of the role. Non-Executive Directors cannot participate in any of the Company’s share option schemes.
Short-term incentive arrangements
The Company’s policy is that a substantial proportion of the Executive Directors’ remuneration should be performance-
related. The Committee reviews and determines the financial objectives that must be met before the start of each
financial year.
Whilst the principal long-term measure of shareholder interests is total shareholder return, the Company believes that for
the purposes of determining annual bonuses, account has to be taken of those aspects of trading performance which
senior management can influence by their actions. Thus annual bonuses depend on specific targets for example, of return
on capital employed, the growth of sales and profits and the quality of profits (which is measured by the net margin as a
percentage of sales) as well as the achievement of other objectives deemed relevant from time to time. Bonus payments
to Executive Directors are capped at a level agreed by the Remuneration Committee from time to time.
Directors’ remuneration report Executive share option scheme
The Group operates an approved and an unapproved executive share option scheme, the rules of which are similar in 
all material respects. The grant of options to Executive Directors and senior management is recommended by the
Committee on the basis of their contribution to the Group’s success. The exercise of options is subject to the meeting 
of performance targets set by the Committee. It is Acal’s policy to grant options to employees on a phased and regular
basis and not in one block. However, at certain times, particularly when recruiting new people or to reward major
achievements, it may be necessary to apply the policy flexibly. It is also Acal’s policy not to grant executive share options
at a discount to market price.
The performance criterion that must be met was determined when the relevant schemes were established, and requires
that the growth in the Company’s earnings per share in any three-year period before exercise must have exceeded the
percentage increase in the Retail Price Index over the same period plus two per cent per annum. This criterion is kept
under review.
The Company does not operate any long-term incentive schemes other than the share option schemes described above.
Pension arrangements
Under the terms of the Group’s pension scheme the Company makes contributions of one per cent of pensionable salary
plus the amount of an employee’s own contribution provided the Company’s contribution does not exceed 6.5% of
pensionable salary. Pensionable salary generally includes payments made to employees under the annual bonus scheme.
Given that the scheme operates on a defined contribution basis and that the Company’s maximum percentage
contribution of 6.5% is relatively low, it is considered that the inclusion of bonus payments for pension purposes, both
for directors and employees, is not unreasonable. All members of the scheme were previously eligible for a further
Company contribution which was not guaranteed and may have been paid depending on the performance of the
Company. No such performance-related contribution has been payable since 31 March 2001 and as a result, this has
been withdrawn. In recognition of long service, special contributions of £10,000 and £8,000 were made by the Company
in respect of Mr A J Laughton and Mr J S Virdee respectively in the year to 31 March 2007. Mr J S Virdee participated in
the Group’s pension scheme throughout the year under review. Mr A. J. Laughton ceased to participate in the Group’s
pension scheme with effect from 1 October 2006 since which time the Company has made and will continue to make
such contributions to a personal pension arrangement established by Mr. Laughton as it would otherwise have made to
the Group pension scheme.
Performance graph
The following graph compares the Company’s performance, measured by total shareholder return, with the performance
of the FTSE mid 250 index also measured by total shareholder return. The FTSE mid 250 index is made up of companies in
the FTSE 350, excluding those in the FTSE 100 index. Total shareholder return measures share price growth with dividends
deemed to be reinvested gross on the ex-dividend date and the data points are shown using a moving one-month
average. Although Acal plc is not currently a member of the FTSE 250, it is considered to be a reasonable comparator 
for the Company.
Total shareholder return for period 1 April 2002 to 31 March 2007
25 ACAL plc annual report and accounts for the year ended 31 March 2007
220
200
180
160
140
120
100
80
60
40
ACAL PLC
FTSE 250
2002 2003 2004 2005 2006
TSR Index at 1 04 02 = 100
source: Thomson Datastream
Directors’ remuneration report continued 26 ACAL plc annual report and accounts for the year ended 31 March 2007
Directors’ contracts
It is the Company’s policy that Executive Directors should have service contracts incorporating a maximum period of one
year’s notice. However, it may be necessary occasionally to apply this policy flexibly and offer longer initial notice periods
to new directors. Any termination payments are not agreed in advance and are determined in accordance with the
director’s contractual rights taking account of the circumstances and the director’s duty to mitigate loss. Mr A J Laughton
also served as Non-Executive Chairman of Triage Services Limited in the period up to 30 June 2006 in respect of which
he received and retained fees of £6,000 (2006: £24,000).
Mr A J Laughton and Mr J S Virdee each has a service contract with the Acal Group dated 21 March 2002 
incorporating a notice period of one year. The following letters of appointment are in place in relation to the Chairman
and Non-Executive Directors. 
(i) An agreement with Synergie Business Limited for the provision of the services of Mr R J Moon dated 31 March
2005 which expires on 31 March 2008 and which may be terminated by six months notice. 
(ii) An agreement with Mr E A Barton for his services dated 31 May 2007 which expires on 30 June 2008.
(iii) An agreement with Mr G J Williams for his services dated 29 September 2003 which expires on 30 June 2008 and
which may be terminated by three months notice.
Other than their service contracts, no contract of significance to which any member of the Acal Group is a party and in
which a director is or was materially interested, subsisted at the end of, or during the year.
Directors’ interests
The interests of the directors who served during the year (including family interests) in the shares of the Company were
as follows:
At 31 March 2007 At 31 March 2006
Ordinary shares (5p) fully paid Ordinary shares (5p) fully paid
Beneficial Non-beneficial Beneficial Non-beneficial
A J Laughton 1,400,900 – 1,500,900 –
J S Virdee 105,778 – 105,778 –
R J Moon 10,000 – 10,000 –
G J Williams 1,000 – 1,000 –
E A Barton 1,000 – 1,000 –
The interests of directors in the shares of the Company at 4 June 2007 are unchanged from those at 31 March 2007.
Audited information
The total amounts for directors’ remuneration were as follows:
2007 2006
£ £
Fees 189,000 193,144
Salary and benefits 526,408 509,217
Performance-related bonuses 102,290 35,760
Money purchase pension contributions 51,720 50,955
Compensation for loss of office – –
869,418 789,076
Directors’ remuneration report continued 27 ACAL plc annual report and accounts for the year ended 31 March 2007
Details of the remuneration of directors who served during the years ended 31 March 2007 and 31 March 2006 are 
as follows: 
Total emoluments Pension contribution
Salary 2007 2006
or fees Bonus Benefits 2007 2006 Total Total
£££ £ £ £ £
Executive directors
A J Laughton 300,000 61,431 16,329 377,760 327,647 30,953 30,475
J S Virdee 183,000 40,859 27,079 250,938 217,330 20,767 20,480
Non-executive directors
R J Moon* 131,000 – – 131,000 131,000 – –
R J Williams* – – – – 9,144 – –
G J Williams 28,000 – – 28,000 25,000 – –
E A Barton* 30,000 – – 30,000 28,000 – –
672,000 102,290 43,408 817,698 738,121 51,720 50,955
* The emoluments of Mr R J Williams relate to the period up to his retirement from the Board on 20 July 2005. The
fees in respect of Mr R J Moon and Mr E A Barton were paid to Synergie Business Limited and Lancedale Limited being
companies in which each has a respective interest.
Mr A J Laughton was the highest paid director (both including and excluding pension contributions) in the year ended
31 March 2007 (2006: Mr A J Laughton). No director made any gain on exercise of share options during the year or in
the prior year.
Movements in the directors’ holding of options under the Acal plc Executive Share Option Scheme during the year were
as follows:
Number Movements Number
held at during the year held at Exercise
Director 1.04.06 Granted Exercised Lapsed 31.03.07 Date of grant price When exercisable
A J Laughton 50,000 – – 50,000 – July 1999 462.5p July 2002 to July 2006
A J Laughton 50,000––– 50,000 July 2000 517.5p July 2003 to July 2007
A J Laughton 34,000––– 34,000 July 2001 537.5p July 2004 to July 2008
A J Laughton 23,000––– 23,000 June 2002 586.5p June 2005 to June 2009
A J Laughton 20,000––– 20,000 June 2003 525.0p June 2006 to June 2010
A J Laughton 15,000––– 15,000 July 2004 480.0p July 2007 to July 2011
A J Laughton 15,000––– 15,000 June 2005 335.0p June 2008 to June 2012
A J Laughton – 15,000 – – 15,000 June 2006 367.5p June 2009 to June 2013
J S Virdee 30,000 – – 30,000 – July 1999 462.5p July 2002 to July 2006
J S Virdee 35,000––– 35,000 July 2000 517.5p July 2003 to July 2007
J S Virdee 18,000––– 18,000 July 2001 537.5p July 2004 to July 2008
J S Virdee 13,000––– 13,000 June 2002 586.5p June 2005 to June 2009
J S Virdee 12,000––– 12,000 June 2003 525.0p June 2006 to June 2010
J S Virdee 10,000––– 10,000 July 2004 480.0p July 2007 to July 2011
J S Virdee 10,000––– 10,000 June 2005 335.0p June 2008 to June 2012
J S Virdee – 10,000 – – 10,000 June 2006 367.5p June 2009 to June 2013
The market price of the shares at 31 March 2007 was 398.5p and the range during the year ended on that date was
292p to 465p. The performance conditions in relation to the Acal plc Executive Share Option Scheme are described in
the unaudited section of the report above.
Approval
This Directors’ Remuneration Report has been approved by the Board and signed on its behalf by
N Rowe
Secretary
4 June 2007
Directors’ remuneration report continued While the management of Acal is primarily accountable to its shareholders, in managing the business it takes into
account all stakeholders in Acal including employees, customers and suppliers, as well as the local communities and
environment in which it operates. In a balanced way, without unnecessarily restricting the optimisation of returns, it
endeavours to identify and manage any risks to the value of Acal’s business from social, environmental and ethical
matters, and to take any opportunities presented by a sensible and considerate approach to such matters to enhance
shareholder value. The Board of Acal has adopted policies in relation to corporate social matters, and day-to-day
responsibility for implementation of these policies is delegated to the management of Acal’s operating companies. In
implementing these policies the Group endeavours to ensure that the cost of managing risks is proportionate to their
significance to Acal and its business partners. More specifically, Acal’s policies cover the following:
General
Management at all levels in the organisation is committed to taking account of its corporate social responsibility in its
actions and endeavours to show due respect for human rights and works to high standards of integrity and ethical
propriety. As a multinational organisation, Acal takes account of cultural differences between the various territories in
which it operates.
Employees, health and safety
Acal provides equal opportunities to all employees and prospective employees, and does not discriminate on grounds of
colour, ethnic origin, gender, age, religion, political or other opinion, disability or sexual orientation.
Clear and fair terms of employment as well as a fair and competitive remuneration policy are put in place. Employees are
encouraged to develop their knowledge and skills and to progress their careers to the mutual benefit of themselves and
the companies they work for. It is the responsibility of management to ensure that they comply with all local regulations
including those relating to the employment of underage staff. Local business units are responsible for developing and
implementing effective arrangements for employee communication.
A great deal of importance is attached to the provision of clean, healthy and safe working conditions. In addition to
compliance with all local regulations, Acal promotes working practices which protect the health and safety of its
employees and other persons who come on to its premises. The Group endeavours to protect employees from and does
not tolerate any sexual, physical or mental harassment. Heath and safety matters are kept under regular review by local
management and by the Group management committees.
The Group operates a ‘whistle-blowing’ policy whereby employees may report in confidence any suspected wrongdoing. 
Business relationships
All Acal Group members seek to be honest, fair and competitive in their relationships with all customers and suppliers.
Every attempt is made to ensure that products and services are provided to the agreed standards and all reasonable steps
are taken to ensure the safety and quality of the goods and services provided. Payment is made to suppliers in accordance
with the agreed terms, the relevant goods or services having been satisfactorily delivered. It is Acal’s policy that no one in
the Group should offer or accept any bribes or other corrupt payments, engage in any anti-competitive practices or
knowingly be involved in any fraud or money laundering.
So far as it is able to and taking into account local cultural and regulatory differences, Acal encourages the 
organisations and people with whom it does business to abide by principles of good practice in relation to their
corporate social responsibility.
Community and environment
Each Acal Group company aims to be sensitive to the local community’s cultural, social and economic needs, and seeks
to ensure that its activities do not harm the communities as places to work and live in. The Group seeks to ensure that
its operations do not have a negative impact on the environment. Apart from compliance with all local environmental
regulations, Group companies endeavour to promote the effective management of natural resources and encourage
energy efficient as well as waste minimisation and recycling where economically viable means of doing so are available.
Although the vast majority of products Acal deals with are non-hazardous, where such products are involved it minimises
the environmental risks by use of appropriate labelling and technical information in conjunction with proper training and
procedures for the handling, storage and disposal of such products. The Group has implemented procedures to ensure
compliance with the Restriction of the Use of Hazardous Substances in Electrical and Electronic Equipment Regulations
2004, the Waste Electrical and Electronic Equipment Regulations and the Producer Responsibility Obligations (Packaging
Waste) Regulations 2005.
28 ACAL plc annual report and accounts for the year ended 31 March 2007
Corporate social responsibility 29 ACAL plc annual report and accounts for the year ended 31 March 2007
United Kingdom company law requires the Directors to prepare financial statements for each financial year which give 
a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that
period. In preparing those financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, subject to any 
material departures disclosed and explained in the financial statements; and
• use the going concern basis unless it is inappropriate to presume that the Company 
and the Group will continue in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time
the financial position of the Company and the Group and to enable them to ensure that the financial statements comply
with the Companies Act 1985. They have general responsibility for taking such steps as are reasonably open to them to
safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
Statement of Directors’ responsibilities 30 ACAL plc annual report and accounts for the year ended 31 March 2007
Acal plc
Group financial statements
for the year ended 31 March 2007 Report of the auditors
31 ACAL plc annual report and accounts for the year ended 31 March 2007
Independent auditor’s report to the members of Acal plc
We have audited the group financial statements of Acal plc for the year ended 31 March 2007 which comprise
the Consolidated Income Statement, the Consolidated Statement of Recognised Income and Expense, the
Consolidated Balance Sheet, the Consolidated Cash Flow Statement and the related notes 1 to 39. These group
financial statements have been prepared under the accounting policies set out therein.
We have reported separately on the parent company financial statements of Acal plc for the year ended 
31 March 2007 and on the information in the Directors’ Remuneration Report that is described as having 
been audited. 
This report is made solely to the company’s members, as a body, in accordance with Section 235 of the
Companies Act 1985. Our audit work has been undertaken so that we might state to the company’s members
those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the company and 
the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual Report and the group financial statements in accordance
with applicable United Kingdom law and International Financial Reporting Standards (IFRSs) as adopted by the
European Union are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the group financial statements 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 group financial statements give a true and fair view and
whether the group financial statements have been properly prepared in accordance with the Companies Act
1985 and Article 4 of the IAS Regulation. We also report to you whether in our opinion the information given 
in the directors’ report is consistent with the financial statements.
In addition we report to you if, in our opinion, 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 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 group financial statements. The other information comprises only the Directors’ Report, the Chairman’s
Statement, the Chief Executive’s Review, the Finance Director’s Review, the Board Report on Corporate
Governance and the Directors’ Remuneration Report. We consider the implications for our report if we become
aware of any apparent misstatements or material inconsistencies with the group financial statements. Our
responsibilities do not extend to any other information.
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 group financial statements. It also includes an assessment of the significant
estimates and judgments made by the directors in the preparation of the group financial statements, and 
.of whether the accounting policies are appropriate to the group’s circumstances, consistently applied and
adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered
necessary in order to provide us with sufficient evidence to give reasonable assurance that the group financial
statements are free from material misstatement, whether caused by fraud or other irregularity or error. In
forming our opinion we also evaluated the overall adequacy of the presentation of information in the group
financial statements. 32 ACAL plc annual report and accounts for the year ended 31 March 2007
Report of the auditors continued
Opinion
In our opinion:
• the group 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 31 March 2007 and of its profit for the year then ended; 
• the group financial statements have been properly prepared in accordance with the Companies Act 1985 and
Article 4 of the IAS Regulation; and
• the information given in the directors’ report is consistent with the group financial statements.
Ernst & Young LLP
Registered auditor
London 4 June 2007 33 ACAL plc annual report and accounts for the year ended 31 March 2007
Consolidated income statement
for the year ended 31 March 2007
Disposed
Ongoing activities 2007 2006
activities (note 12) Total
notes £m £m £m £m
Continuing operations
Revenue 4,5 260.9 – 260.9 257.0
Cost of sales (194.8) – (194.8) (191.9)
Gross profit 66.1 – 66.1 65.1
Selling and distribution costs (33.2) – (33.2) (31.6)
Administrative expenses (22.8) – (22.8) (23.9)
Other operating income 7 0.8 – 0.8 0.9
Other operating expenses – (1.8) (1.8) (0.8)
Operating profit 8 10.9 (1.8) 9.1 9.7
Analysed between:
Operating profit before exceptional items 5 10.5 – 10.5 9.9
Exceptional items – provision for retained obligations 6 – (1.8) (1.8) –
Exceptional items – recovery of impaired receivable 6 0.4 – 0.4 –
Exceptional items – profit on disposal of investments 6 ––– 0.6
Exceptional items – product withdrawal costs 6 ––– (0.8)
Share of post-tax profits from associates 20 0.6 – 0.6 0.4
Finance costs 10 (1.7) – (1.7) (2.3)
Finance revenue 10 0.4 – 0.4 0.6
Profit before tax 10.2 (1.8) 8.4 8.4
Analysed between:
Profit before taxation before exceptional items 9.8 – 9.8 8.6
Exceptional items – provision for retained obligations 6 – (1.8) (1.8) –
Exceptional items – recovery of impaired receivable 6 0.4 – 0.4 –
Exceptional items – profit on disposal of investments 6 ––– 0.6
Exceptional items – product withdrawal costs 6 ––– (0.8)
Corporation tax expense:
United Kingdom taxation (2.6) 0.5 (2.1) (2.6)
Overseas taxation (0.5) – (0.5) (0.1)
Taxation 11 (3.1) 0.5 (2.6) (2.7)
Analysed between:
Taxation before exceptional items (3.0) – (3.0) (2.8)
Exceptional items – taxation credit arising consequent 
on the disposal – 0.5 0.5 –
Exceptional items – taxation charge arising on recovery 
of impaired receivable (0.1) – (0.1) –
Exceptional items – taxation charge arising on profit on 
disposal of investments ––– (0.1)
Exceptional items – taxation charge arising on product 
withdrawal costs ––– 0.2
Profit after taxation for the year from 
continuing operations 7.1 (1.3) 5.8 5.7
Discontinued operations
Profit for the year from discontinued operations 12 – 6.1 6.1 0.9
Profit for the year 7.1 4.8 11.9 6.6
Attributable to:
Equity holders of the parent 11.7 6.0
Minority interests 0.2 0.6
11.9 6.6 34 ACAL plc annual report and accounts for the year ended 31 March 2007
Consolidated income statement continued
for the year ended 31 March 2007
Disposed
Ongoing activities 2007 2006
activities (note 12) Total
notes £m £m £m £m
Earnings per share 14
Continuing Operations
Basic    – including exceptional items 26.1p (4.8p) 21.3p 19.1p
– excluding exceptional items 25.0p – 25.0p 19.6p
Diluted – including exceptional items 26.1p (4.8p) 21.3p 19.1p
– excluding exceptional items 25.0p – 25.0p 19.6p
Including discontinued operations
Basic 44.4p 22.3p
Diluted 44.4p 22.3p
Dividends
Dividends per share declared in respect of the year 21.9p 21.6p
Dividends per share paid in the year 21.6p 21.6p
Dividends paid in the year £5.7m £5.7m
Consolidated statement of recognised
income and expense for the year ended 31 March 2007
2007 2006
notes £m £m
Actuarial gain/(loss) on defined benefit pension scheme 36 0.9 (3.4)
Deferred tax relating to pension scheme 11 (0.5) 0.8
Investments – cumulative fair value adjustments taken to 
income statement on disposal 33 – (0.4)
Foreign currency translation differences 33 (0.6) 0.7
Net income and expense recognised directly in equity (0.2) (2.3)
Profit for the year 11.9 6.6
Total recognised income and expense for the year 11.7 4.3
Restatement for the effects of IAS 32 and 39 (i) 21 – 0.4
Total recognised income and expense 11.7 4.7
Total recognised income and expense for the year attributable to:
Equity holders of the parent 11.5 4.1
Minority interests 0.2 0.6
11.7 4.7
(i) On 1 April 2005, the balance sheet was restated for the effects of IAS 32 and 39. 35 ACAL plc annual report and accounts for the year ended 31 March 2007
Consolidated balance sheet
at 31 March 2007
2007 2006
notes £m £m
Non-current assets
Property, plant and equipment 16 6.3 6.7
Goodwill 17 53.5 48.8
Intangible assets – software 19 3.9 4.8
Investments in associates 20 5.0 4.7
Other financial assets 21 0.3 0.3
Deferred tax assets 11 4.0 4.0
73.0 69.3
Current assets
Inventories 22 23.7 21.4
Trade and other receivables 23 58.8 58.0
Current tax assets 0.4 1.7
Cash and cash equivalents 24 11.9 16.9
94.8 98.0
Current liabilities 
Trade and other payables 30 (58.9) (58.0)
Short-term borrowings 25 (7.2) (11.2)
Current tax liabilities (2.8) (3.7)
Provisions 27 (2.1) (1.0)
(71.0) (73.9)
Net current assets 23.8 24.1
Assets of discontinued operations classified as held for sale 12 – 6.2
Non-current liabilities
Long-term borrowings 25 (10.1) (12.2)
Pension liability 36 (7.4) (9.1)
Deferred tax liabilities 11 (1.6) (1.8)
Provisions 27 (1.9) (0.7)
(21.0) (23.8)
Liabilities of discontinued operations classified as held for sale 12 – (4.1)
Net assets 75.8 71.7
Equity
Share capital 31 1.3 1.3
Share premium account 32 38.0 38.0
Share scheme reserve 32 0.3 0.2
Other reserves 33 1.2 1.8
Retained earnings 32 35.0 28.6
Equity attributable to equity holders of the parent 75.8 69.9
Minority interests 32 – 1.8
Total equity 32 75.8 71.7
These financial statements were approved by the Board of Directors on 4 June 2007 and signed on its behalf by:
R J Moon J S Virdee
Chairman Finance Director 36 ACAL plc annual report and accounts for the year ended 31 March 2007
Consolidated cash flow statement
for the year ended 31 March 2007
2007 2006
notes £m £m
Profit for the year 11.9 6.6
Taxation expense (includes £0.3m (2006: £0.4m) from discontinued operations) 2.9 3.1
Share of results of associates (0.6) (0.4)
Net finance costs 1.3 1.7
Depreciation of property, plant and equipment 1.9 2.1
Amortisation of intangible assets – software 1.2 1.1
Change in provisions 2.3 0.7
Gain on disposal of investments (6.0) (0.6)
Gain on disposal of property, plant and equipment – (0.1)
Pension scheme funding (1.0) (0.7)
Equity-settled share-based payment expense 0.1 0.1
Operating cash flows before changes in working capital 14.0 13.6
(Increase)/decrease in inventories (2.5) 2.1
Increase in trade and other receivables (1.9) (5.7)
Increase in trade and other payables 1.6 5.9
(Increase)/decrease in working capital (2.8) 2.3
Cash generated from operations 11.2 15.9
Interest paid (1.5) (2.1)
Income taxes paid (3.4) (2.9)
Net cash flows from operating activities 6.3 10.9
Cash flows from investing activities
Acquisition of shares in subsidiaries (6.7) (0.4)
Proceeds from sale of subsidiaries 8.3 –
Net overdrafts disposed of with subsidiaries 0.4 –
Proceeds from sale of investments – 2.5
Purchases of property, plant and equipment (1.8) (2.2)
Proceeds from sale of property, plant, equipment and intangibles 0.2 0.3
Purchase of intangible assets – software (0.4) (0.3)
Interest received 0.4 0.6
Dividends received from associates 0.2 0.1
Net cash inflow from investing activities 0.6 0.6
Cash flows from financing activities
Repayments of borrowings (7.1) (3.1)
Dividends paid to company’s shareholders 13 (5.7) (5.7)
Dividends paid to minority interests (0.1) –
Net cash outflow from financing activities (12.9) (8.8)
Net (decrease)/increase in cash and cash equivalents (6.0) 2.7
Cash and cash equivalents at 1 April 10.8 8.0
Effect of exchange rate fluctuations – 0.1
Cash and cash equivalents at 31 March 24 4.8 10.8
Reconciliation to cash and cash equivalents in the balance sheet
Cash and cash equivalents shown above 4.8 10.8
Add back overdrafts 7.1 6.1
Cash and cash equivalents shown within current assets in the balance sheet 11.9 16.9 37 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements
1 Authorisation of financial statements and statement of compliance with IFRS
The consolidated financial statements of Acal plc for the year ended 31 March 2007 were authorised for issue by the
Board of directors on 4 June 2007. Acal plc is a public limited company incorporated and domiciled in England and
Wales. The Company’s ordinary shares are traded on the London Stock Exchange.
The Group’s financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS)
as adopted for use in the European Union and as applied in accordance with the provisions of the Companies Act 1985.
The significant accounting policies adopted by the Group are set out in note 2.
2 Accounting policies
Basis of preparation
The consolidated financial statements of Acal plc and all its subsidiaries have been prepared in accordance with
International Financial Reporting Standards (IFRS).
The consolidated financial statements are presented in pounds sterling and all values are rounded to the nearest hundred
thousand except when otherwise indicated. 
Basis of consolidation 
The Group’s financial statements consolidate the financial statements of Acal plc, entities controlled by the Company (its
subsidiaries) and include the Group’s share of the results of associates.
Subsidiaries and associates
A subsidiary is an entity controlled by Acal plc, i.e. the Company has the power to control the entity’s financial and
operating policies. The financial statements of subsidiaries are prepared for the same reporting year as the parent company.
Subsidiaries are consolidated from the date on which control is obtained by the Group and cease to be consolidated
from the date on which the Group no longer retains control. All intra-Group transactions, balances, income and
expenses are eliminated on consolidation.
An associate is an undertaking in which the Group has significant influence and which is neither a subsidiary nor joint
venture. Significant influence is the power and the ability to participate in its financial and operating policy decisions, but
not control or joint control of those decisions.
Acal’s investments in its associates are accounted for under the equity method of accounting. Under the equity method,
investments in associates are carried in the Group balance sheet at cost plus post-acquisition changes in the Group’s
share of net assets of the associate, less distributions received and less any impairment in value.
Minority interests
Minority interests represent the interests of non-Group shareholders in subsidiaries not wholly owned by the Group.
Minority interests are presented within equity in the Group balance sheet, separately from the parent shareholders’ equity.
Assets held for sale
Assets are classified as held for sale if their carrying amount will be recovered principally through a sale rather than from
continued use. Assets held for sale are valued at the lower of their carrying amount and fair value less costs to sell. IFRS
5: Non-Current Assets Held for Sale and Discontinued Operations, which determines when an entity ceases to be
consolidated, has been applied with effect from 1 April 2005.
Business combinations and goodwill 
Goodwill represents the excess of the cost of the business combination over the fair value of the Group’s share of the
identifiable assets less liabilities and contingent liabilities of the acquired entity at the date of acquisition.
After initial recognition, goodwill is stated at cost less any accumulated impairment losses, with the carrying value being
reviewed for impairment, at least annually and whenever events or changes in circumstances indicate that the carrying
value may be impaired. Notes to the group financial statements continued
38 ACAL plc annual report and accounts for the year ended 31 March 2007
2 Accounting policies continued
At the acquisition date, goodwill acquired is recognised as an asset and is allocated to each of the cash-generating units
expected to benefit from the combination's synergies. Goodwill is reviewed for impairment at least annually by assessing
the recoverable amount of each cash-generating unit to which the goodwill relates. Where the recoverable amount of
the cash-generating unit is less than the carrying amount, an impairment loss is recognised immediately in profit or loss
and is not subsequently reversed. Goodwill arising on the acquisition of associates is included within the carrying value
of the investment.
Any intangible assets acquired as part of a business combination are recognised separately from goodwill if the asset is
separable or arises from contractual or other legal rights and its fair value can be measured reliably.
On disposal of a subsidiary the attributable amount of goodwill is included in the determination of the profit or loss 
on disposal.
Goodwill arising on acquisitions before 1 April 2004 (the date of transition to IFRS) has been retained at the previous 
UK GAAP amounts having been tested for impairment at that date. 
Intangible assets – software
Implementation costs of IT systems, and computer software, are amortised on a straight-line basis over their estimated
useful lives at rates of 12.5-33%. Software is assessed for impairment in accordance with IAS 36, Impairment of Assets,
when there are events or changes in circumstances that indicate that the carrying value may not be recoverable.
Property, plant and equipment 
Property, plant and equipment assets are carried at cost less accumulated depreciation and any accumulated impairment
losses. 
Depreciation is provided on a straight-line basis to write off the cost, less residual value, over the estimated useful life of
the asset at the following rates: 
Freehold land nil
Freehold buildings 2-3% 
Leasehold improvement costs     10-20% 
Plant, equipment and IT hardware 10-33%
All property, plant and equipment assets are reviewed for impairment in accordance with IAS 36, Impairment of Assets,
when there are events or changes in circumstances that indicate that the carrying value may not be recoverable. 
Impairment
At each balance sheet date, the Group reviews the carrying value of its assets to determine whether there is any
indication that the assets have suffered an impairment loss. If any such indication exists, or when annual testing for an
asset is required, the recoverable amount of the asset is estimated in order to determine the extent of the impairment
loss, if any.
Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset
(or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-
generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately.
An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment
losses may no longer exist or may have decreased. If such indication exists, an impairment loss is reversed to the extent
that the asset’s carrying value does not exceed the carrying amount that would have been determined, net of depreciation
or amortisation, if no impairment loss had been recognised. Such reversals are recognised in the income statement.
Other financial assets
Investments are initially recognised at cost, being the fair value of the consideration given and including directly attributable
transaction costs associated with the investment. 
After initial recognition, investments in equity shares are treated as available for sale financial assets and are measured at
their fair value with any gains or losses recognised in equity. When the investment is derecognised or impaired, the
cumulative gain or loss previously reported in equity is included in the income statement. 
Investments in equity instruments that do not have a quoted market price in an active market and whose fair value can not
be reliably valued are measured at cost. 
Loans and receivables are non-derivative financial assets with fixed or determinable payments. They are included in current
assets, except for maturities greater than 12 months after the balance sheet date which are classified as non-current assets.
Loans and receivables are included in trade and other receivables in the balance sheet. 39 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements continued
2 Accounting policies continued
Other financial assets are assessed for impairment in accordance with IAS 36, Impairment of Assets, when there are
events or changes in circumstances that indicate that the carrying value may not be recoverable.
Inventories 
Inventories comprise goods held for resale and are stated at the lower of weighted average cost and net realisable value
after making allowance for any obsolete or slow moving items. Cost includes carriage incurred.
Trade and other receivables
Trade receivables are recognised and carried at original invoice amount less an allowance for any uncollectable amounts.
An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written
off when identified.
Cash and cash equivalents 
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with an
original maturity of three months or less. For the purposes of the consolidated cash flow statement, cash and cash
equivalents comprise cash and cash equivalents as defined above, net of outstanding bank overdrafts.
Borrowings
Borrowings are initially recognised at fair value of the consideration received net of any associated issue costs. Borrowings
are subsequently recorded at amortised cost, with any difference between the amount initially recorded and the
redemption value recognised in the income statement using the effective interest method.
Provisions
Provisions for warranties, onerous contracts and restructuring costs are recognised when the Group has a present legal
or constructive obligation as a result of a past event; it is probable that an outflow of resources will be required to settle
the obligation; and a reliable estimate can be made of the amount of the obligation.
Provisions are discounted to present value where the effect is material using a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. The amortisation of the discount is
recognised as a finance cost.
Foreign currency translation
Transactions in foreign currencies are initially recorded in the functional currency at the exchange rate ruling at the date
of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of
exchange ruling at the balance sheet date and gains or losses on translation are included in the Income Statement. 
Currency gains and losses arising from the retranslation of the opening net assets of foreign operations are recorded as a
movement on reserves, net of tax. The differences that arise from translating the results of overseas businesses at
average rates of exchange, and their assets and liabilities at closing rates, are dealt with in a separate currency
translation reserve. All other currency gains and losses are dealt with in the Income Statement.
Revenue recognition
Revenue represents the invoiced value of goods, commission and other services provided to third parties, after deducting
discounts, VAT and similar taxes levied overseas. Revenue is recognised to the extent that it is probable that the economic
benefits will flow to the Group and the revenue can be reliably measured. In particular:
a Revenue from the sale of products is recognised upon transfer to the customer of the significant risks and rewards of
ownership. This is generally when goods are despatched to customers.
b Revenue from service contracts is recognised over the life of the contract reflecting performance of the contractual
obligations to the customer.
c Interest income is recognised as the interest accrues using the effective interest method.
d Dividend income is recognised when the shareholders’ right to receive the payment is established.
Dividends
Dividends are recognised when they meet the criteria for recognition as a liability. In relation to final dividends, this is
when approved by the shareholders in general meeting, and in relation to interim dividends, when paid.
Leases 
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases. Notes to the group financial statements continued
40 ACAL plc annual report and accounts for the year ended 31 March 2007
2 Accounting policies continued
Assets held under finance leases are recognised as assets of the Group at their fair value or, if lower, at the present value
of the minimum lease payments, each determined at the inception of the lease. The corresponding liability to the lessor is
included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and
reduction of the lease obligations so as to achieve a constant rate of interest on the remaining balance of the liability.
Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease.
Borrowing costs
Borrowing costs are recognised as an expense in the period in which they are incurred.
Pensions 
Payments to defined contribution schemes are charged as an expense as they fall due. 
In respect of defined benefit pension schemes, the obligation recognised in the balance sheet represents the present
value of the defined benefit obligation as adjusted for any unrecognised past service cost, reduced by the fair value of
the scheme assets. The cost of providing benefits is determined using the projected unit credit actuarial valuation
method. Actuarial gains and losses are recognised in full in the period in which they occur in the Statement of
Recognised Income and Expense. 
Share-based payments
The cost of equity-settled transactions with employees is measured by reference to the fair value at the date at which
they are granted, calculated using an option pricing model, and is recognised as an expense over the vesting period,
which ends on the date on which the relevant employees become fully entitled to the award. In valuing equity-settled
transactions, no account is taken of non-market vesting conditions.
No expense is recognised for awards that do not ultimately vest. At each balance sheet date before vesting, the
cumulative expense is calculated, representing the extent to which the vesting period has expired and management’s
best estimate of the achievement or otherwise of non-market conditions and hence the number of equity instruments
that will ultimately vest. The movement in cumulative expense since the previous balance sheet date is recognised in the
income statement, with a corresponding entry in equity.
The Group has taken advantage of the exemption permitted under IFRS 1in respect of equity-settled awards and IFRS 2
has only been applied to options awarded on or after 7 November 2002 that had not vested on or before 1 January 2005.
Taxation 
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities, based on tax rates and laws that are enacted or substantively enacted by the balance sheet date.
Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities 
and their carrying amounts in the financial statements, with the following exceptions:
• where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a 
transaction that is not a business combination that at the time of the transaction affects neither accounting nor
taxable profit or loss;
• in respect of taxable temporary differences associated with investments in subsidiaries and associates, where the
timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences
will not reverse in the foreseeable future; and
• deferred tax assets are recognised only to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, carried forward tax credits or tax losses can be utilised. 
Deferred tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply
when the related asset is realised or liability is settled, based on tax rates and laws enacted or substantively enacted at
the balance sheet date.
Income tax is charged or credited directly to equity if it relates to items that are credited or charged to equity. Otherwise
income tax is recognised in the income statement.
Financial instruments
The Group uses derivatives, principally forward currency contracts, to hedge risks associated with foreign currency fluctuations. 
To 31 March 2005, assets and liabilities covered by forward exchange contracts were translated into sterling at forward rates.
From 1 April 2005, the date of adoption of IAS 32/39, such derivatives are initially recognised at fair value on the date on which
a contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as assets when the fair value is
positive and as liabilities when the fair value is negative. 41 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements continued
2 Accounting policies continued
The fair value of forward currency contracts is calculated by reference to current forward exchange rates for contracts
with similar maturity profiles. For those derivatives designated as hedges and for which hedge accounting is required,
the hedging relationship is documented at its inception. This documentation identifies the hedging instrument, the
hedged item or transaction, the nature of the risk being hedged and how effectiveness will be measured throughout its
duration. Such hedges are expected at inception to be highly effective.
For the purpose of hedge accounting, hedges are classified as cash flow hedges when hedging exposure to variability in
cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a probable
forecast transaction.
Any gains or losses arising from changes in the fair value of derivatives that do not qualify for hedge accounting are
taken to the income statement. 
For cash flow hedges, the effective portion of the gain or loss on the hedging instrument is recognised directly in equity,
while the ineffective portion is recognised in profit or loss. 
Amounts taken to equity are transferred to the income statement when the hedged transaction affects profit or loss,
such as when a forecast sale or purchase occurs. Where the hedged item is the cost of a non-financial asset or liability,
the amounts taken to equity are transferred to the initial carrying amount of the non-financial asset or liability.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer
meets the criteria for hedge accounting. Any amounts previously recognised in equity remain in equity until the forecast
transaction occurs. If a forecast transaction is no longer expected to occur, amounts previously recognised in equity or
as an asset or liability are transferred to profit or loss.
3 New accounting standards and financial requirements
New standards and interpretations not applied
During the year, the IASB and IFRIC have issued the following standards and interpretations with an effective date after
the date of these financial statements:
effective date
International Accounting Standards (IAS/IFRS)
IFRS 7 Financial Instruments: Disclosures* 1 January 2007
IFRS 8 Operating Segments 1 January 2009
IAS 1 Amendment – Presentation of Financial Statement: Capital Disclosures 1 January 2007
IAS 23 Amendment – Borrowing Costs 1 January 2009
International Financial Reporting Interpretations Committee (IFRIC)
IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting 
in Hyperinflationary Economies 1 March 2006
IFRIC 8 Scope of IFRS 2 1 May 2006
IFRIC 9 Reassessment of Embedded Derivatives 1 June 2006
IFRIC 10 Interim Financial Reporting and Impairment 1 November 2006
IFRIC 11 IFRS 2 – Group and Treasury Share Transactions 1 March 2007
IFRIC 12 Services Concession Arrangements 1 January 2008
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.
* This standard requires additional disclosures to be made for financial instruments and is to be adopted by the Group
during the year ending 31 March 08. There is no impact on the reported amounts of financial instruments as a
result of adopting this financial standard. Notes to the group financial statements continued
42 ACAL plc annual report and accounts for the year ended 31 March 2007
4 Revenue
An analysis of the Group’s revenue is as follows:
2007 2006
£m £m
Sale of goods 241.2 240.6
Rendering of services 19.7 16.4
Total revenue 260.9 257.0
5 Segmental analysis
A business segment is a group of assets and operations engaged in providing products or services that are subject to
risks and returns that are different from those of other segments.
A geographical segment is engaged in providing products or services within a particular economic environment that is
subject to risks and returns that are different from those of segments operating in other economic environments.
For management purposes, the group is organised into three business segments – Electronics, Parts Services and 
IT Solutions. These business segments are the basis on which the group reports its primary segment information.
Secondary segment information is based on geographic location; the group has activities in Europe and sales to the Rest
of the World, according to the location of the markets and customers.
There are immaterial sales between business segments. Segment assets include intangible assets, property, plant and
equipment, inventories, trade and other receivables. Segment liabilities include trade and other payables and other
provisions. Capital expenditure comprises the balance sheet additions for property, plant and equipment and 
intangible assets.
The following tables present revenue and profit information and certain asset and liability information regarding
business segments for the years to 31 March 2007 and 31 March 2006. Discontinued operations relates to the air
conditioning and refrigeration business – see note 12.
Year to 31 March 2007
Total
Parts IT ongoing Disposed Total
Electronics Services Solutions Unallocated activities activities operations
£m £m £m £m £m £m £m
Revenue 107.6 51.9 101.4 – 260.9 5.3 266.2
Segment result 5.2 3.8 5.6 (3.7) 10.9 0.4 11.3
Provision for retained 
obligations ––––– (1.8) (1.8)
Profit on disposal 
of activities ––––– 6.0 6.0
Net finance costs – – – (1.3) (1.3) – (1.3)
Share of post-tax profits 
of associates 0.6 – – – 0.6 – 0.6
Profit before taxation 5.8 3.8 5.6 (5.0) 10.2 4.6 14.8
Taxation (3.1) 0.2 (2.9)
Profit for the year 7.1 4.8 11.9 43 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements continued
5 Segmental analysis continued
The figures for total operations in the table above may be analysed between continuing and discontinued operations 
as follows:
Continuing Discontinued Total
operations operations operations
£m £m £m
Revenue 260.9 5.3 266.2
Segment result 10.9 0.4 11.3
Provision for retained obligations (1.8) – (1.8)
Profit on disposal of activities – 6.0 6.0
Net finance costs (1.3) – (1.3)
Share of post-tax profits of associates 0.6 – 0.6
Profit before taxation 8.4 6.4 14.8
Taxation (2.6) (0.3) (2.9)
Profit for the year 5.8 6.1 11.9
Assets and liabilities
Total
Parts IT continuing Discontinued Total
Electronics Services Solutions operations operations operations
£m £m £m £m £m £m
Segment assets (excluding 
goodwill and associates) 41.6 18.9 35.4 95.9 – 95.9
Goodwill 36.8 16.4 0.3 53.5 – 53.5
Investment in associates 5.0 – – 5.0 – 5.0
83.4 35.3 35.7 154.4 – 154.4
Unallocated corporate assets 9.0
Current/deferred tax assets 4.4
Total assets 167.8
Segment liabilities (25.5) (5.8) (26.6) (57.9) – (57.9)
Unallocated corporate liabilities (22.3)
Pensions (7.4)
Current/deferred tax liabilities (4.4)
Total liabilities (92.0)
Net assets 57.9 29.5 9.1 96.5 – 75.8
Unallocated net assets comprise certain property, plant and equipment, intangibles, cash and all borrowings.
Other segment information
Total
Parts IT continuing Discontinued Total
Electronics Services Solutions Unallocated operations operations operations
£m £m £m £m £m £m £m
Capital expenditures: 
Property, plant and 
equipment 0.9 0.2 0.7 – 1.8 – 1.8
Intangible fixed assets 0.1 0.2 – – 0.3 – 0.3
Depreciation 0.7 0.4 0.8 – 1.9 – 1.9
Amortisation 0.1 0.1 0.1 0.9 1.2 – 1.2
Change in provisions 0.2 0.2 0.3 3.0 3.6 – 3.6
Net inventory write downs 0.2 1.0 1.1 – 1.3 – 1.3 Notes to the group financial statements continued
44 ACAL plc annual report and accounts for the year ended 31 March 2007
5 Segmental analysis continued
Year to 31 March 2006
Total
Parts IT continuing Discontinued Total
Electronics Services Solutions Unallocated operations operations operations
£m £m £m £m £m £m £m
Revenue 104.0 56.9 96.1 – 257.0 18.4 275.4
Segment result 3.5 6.0 3.6 (3.2) 9.9 1.3 11.2
Exceptional items:
Profit on disposal 
of investments – – – 0.6 0.6 – 0.6
Product withdrawal costs – – (0.8) – (0.8) – (0.8)
Net finance costs – – – (1.7) (1.7) – (1.7)
Share of post-tax profits 
from associates 0.4––– 0.4 – 0.4
Profit before taxation 3.9 6.0 2.8 (4.3) 8.4 1.3 9.7
Taxation (2.7) (0.4) (3.1)
Profit for the year 5.7 0.9 6.6
Assets and liabilities
Total
Parts IT continuing Discontinued Total
Electronics Services Solutions operations operations operations
£m £m £m £m £m £m
Segment assets (excluding
goodwill and associates) 42.8 21.1 33.3 97.2 6.2 103.4
Goodwill 36.9 11.6 0.3 48.8 – 48.8
Investment in associates 4.7 – – 4.7 – 4.7
84.4 32.7 33.6 150.7 6.2 156.9
Unallocated corporate assets 10.9
Unallocated current/deferred tax assets 5.7
Total assets 173.5
Segment liabilities (24.7) (8.8) (24.8) (58.3) (3.1) (61.4)
Unallocated corporate liabilities (25.8)
Pensions (9.1)
Unallocated current/deferred tax liabilities (5.5)
Total liabilities (101.8)
Net assets 59.7 23.9 8.8 92.4 3.1 71.7
Other segment information
Total
Parts IT continuing Discontinued Total
Electronics Services Solutions Unallocated operations operations operations
£m £m £m £m £m £m £m
Capital expenditures: 
Property, plant and equipment 0.8 0.5 0.8 0.1 2.2 – 2.2
Intangible fixed assets 0.1 0.1 – – 0.2 0.1 0.3
Depreciation 0.8 0.5 0.7 0.1 2.1 – 2.1
Amortisation 0.1 0.2 0.1 0.7 1.1 – 1.1
Change in provisions (0.2) 0.2 – 0.5 0.5 0.2 0.7
Net inventory write downs 1.1 1.0 1.0 – 3.1 – 3.1 45 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements continued
5 Segmental analysis continued
Geographical segments
Revenue by geographic market
2007 2006
£m £m
Europe 253.4 250.8
Rest of the World 7.5 6.2
260.9 257.0
Revenue by geographic markets is analysed further elsewhere in the report and accounts to provide additional
information to users of these accounts.
Capital expenditure by geographic origin
2007 2006
£m £m
Europe 2.2 2.4
Rest of the World – 0.1
2.2 2.5
Capital expenditure comprises additions of property, plant and equipment and intangible assets (excluding goodwill).
Assets by geographic origin
2007 2006
£m £m
Europe 96.4 94.1
Rest of the World 0.1 1.4
Operating assets by segment 96.5 95.5
Unallocated corporate assets 9.0 10.9
Unallocated corporate liabilities (22.3) (25.8)
Pensions (7.4) (9.1)
Net tax assets – 0.2
Total net assets 75.8 71.7
6 Exceptional items
Continuing operations
2007 2006
£m £m
Other operating income:
Profit on disposal of investments – 0.6
Recovery of impaired receivable 0.4 –
Other operating expenses:
Product withdrawal costs – (0.8)
Provision for retained obligations Note 12 (1.8) –
Product withdrawal costs comprise inventory write downs of £0.4m and impairment of financial assets of £0.4m. Notes to the group financial statements continued
46 ACAL plc annual report and accounts for the year ended 31 March 2007
7 Other operating income
2007 2006
£m £m
Net gains on disposal of property, plant and equipment 0.2 0.1
Profit on disposal of investments – 0.6
Dividends from investments – 0.1
Recovery of impaired receivable 0.4 –
Other 0.2 0.1
0.8 0.9
8 Operating profit
Operating profit including discontinued operations is stated after charging/(crediting):
2007 2006
£m £m
Employee costs (note 9) 37.6 38.4
Depreciation of property, plant and equipment (note 16) 1.9 2.1
Amortisation of intangible assets (note 19) 1.2 1.1
Inventories (amounts included in cost of sales):
Cost of inventories 196.8 201.1
Write-down of inventories 2.0 3.2
Reversal of prior year write-down of inventories* (0.5) (0.1)
Operating lease rentals:
Minimum lease payments recognised as an operating lease expense 4.0 4.1
Audit of the financial statements 0.1 0.1
Other fees to auditors – local statutory audits for subsidiaries 0.2 0.2
Fees in relation to tax services are £30,000 (2006: £28,000).
* Reversal relates to sales of goods previously written down.
9 Employee costs
Including discontinued operations
2007 2006
£m £m
Wages and salaries 31.8 32.1
Social security costs 4.4 4.7
Pension costs 1.3 1.5
Equity settled share-based payments 0.1 0.1
37.6 38.4
The average monthly number of employees (including Executive Directors) during the year was as follows:
2007 2006
Number Number
Marketing, sales and service 791 807
Administration 175 191
966 998
Details of Directors’ emoluments are disclosed in the remuneration report on pages 24 to 27.  47 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements continued
10 Finance costs/(revenue)
Including discontinued operations
2007 2006
£m £m
Interest expense on bank loans and overdrafts 1.5 2.2
Net pension finance charge 0.2 0.1
Finance costs 1.7 2.3
Interest receivable and similar income (0.4) (0.6)
Finance revenue (0.4) (0.6)
11 Taxation
The major components of corporation tax expense for the years ended 31 March 2007 and 2006 are:
Consolidated income statement for total operations
2007 2006
£m £m
Current taxation
UK corporation tax 3.0 3.2
UK adjustments in respect of prior years 0.1 0.1
3.1 3.3
Overseas tax 1.0 0.3
Overseas adjustments in respect of prior years (0.3) (0.1)
0.7 0.2
Total current taxation 3.8 3.5
Deferred taxation
Origination and reversal of temporary differences within the UK (0.9) (0.7)
Origination and reversal of temporary differences overseas – (0.1)
Total deferred taxation (0.9) (0.8)
Tax reported in the consolidated income statement 2.9 2.7
Consolidated statement of changes in equity
2007 2006
£m £m
Decrease/(increase) in deferred tax asset on pension deficit 0.5 (0.8)
Tax reported in equity 0.5 (0.8) Notes to the group financial statements continued
48 ACAL plc annual report and accounts for the year ended 31 March 2007
11 Taxation continued
Taxation for the year is lower (2006: higher) than the standard rate of taxation in the UK (30%). A reconciliation of the
tax charge applicable to profit before tax at the statutory tax rate to the actual tax charge at the Group’s effective tax
rate for the years ended 31 March 2007 and 31 March 2006 respectively was as follows:
2007 2006
£m £m
Accounting profit before tax 14.8 9.7
Profit before taxation multiplied by standard rate of corporation tax 
in the UK of 30% (2006: 30%) 4.4 2.9
Effect of:
Different tax rates in overseas companies 0.1 –
Associate companies (0.2) (0.1)
Utilisation of tax losses not previously recognised (0.1) (0.2)
Current year losses not recognised 0.5 0.4
Non taxable gain on disposal of business (1.7) –
Non-deductible expenses 0.1 0.1
Adjustments to tax expense in respect of prior years (0.2) –
At effective tax rate of 19.6% (2006: 32.3%) 2.9 3.1
Tax expense reported in the consolidated income statement for continuing operations 2.6 2.7
Tax expense attributable to discontinued operations 0.3 0.4
Tax reported in the consolidated income statement 2.9 3.1
The current tax asset represents advance payments receivable within one year.
Deferred tax
Deferred tax at 31 March 2007 relates to the following:
2007 2006
£m £m
Deferred tax liabilities
Accelerated capital allowances (0.5) (0.7)
Undistributed earnings of overseas associates (0.5) (0.4)
Other temporary differences (0.6) (0.7)
Gross deferred tax liabilities (1.6) (1.8)
Deferred tax assets
Pensions 2.2 2.7
Tax losses 0.2 0.2
Other temporary differences 1.6 1.1
Gross deferred tax assets 4.0 4.0 49 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements continued
11 Taxation continued
Deferred tax in the income statement
2007 2006
£m £m
Consolidated income statement – total operations
Deferred tax credit
Accelerated capital allowances (0.2) 0.1
Other temporary differences (0.7) (0.7)
(0.9) (0.8)
At 31 March 2007, the Group had recognised a deferred tax asset of £0.2 million (2006: £0.2 million) in respect of tax
losses of approximately £0.7 million (2006: £0.7 million). These losses may all be carried forward indefinitely. At 31 March
2007 the Group had not recognised any deferred tax asset in respect of tax losses of approximately £7.2 million 
(2006: £6.3 million). Deferred tax assets are not recognised where there is insufficient evidence that losses will be utilised.
At 31 March 2007, there was no recognised deferred tax liability (2006: nil) for taxes that would be payable on the
remittance of certain of the Group’s overseas subsidiaries unremitted earnings, as the Group has determined that the
undistributed profits of its overseas subsidiaries will not be distributed in the near future where an additional tax charge
would arise.
12 Disposed activities
On 25 May 2006, the Company announced the disposal of its air conditioning and refrigeration business. The disposal
was completed on 3 July 2006 for a cash consideration of £8.3 million. The results of this business have been presented
under discontinued operations in the consolidated income statement.
2007 2006
£m £m
Sale proceeds 8.3 –
Total net assets sold (2.3) –
6.0 –
Tax effect of disposal (0.1) –
Profit on disposal 5.9 –
In addition a provision of £1.8 million (charged to continuing operations) has been made to cover certain obligations of
the disposed activities which have been retained by the Group. These obligations represent costs relating to people,
properties and impairment of IT systems.
Total net assets sold comprised the following assets and liabilities:
Total
£m
Fixed assets and intangibles 0.1
Inventories 2.0
Debtors 4.4
Cash 0.3
Total assets sold 6.8
Bank overdrafts (0.7)
Creditors (3.8)
Total liabilities sold (4.5)
Total net assets sold 2.3 Notes to the group financial statements continued
50 ACAL plc annual report and accounts for the year ended 31 March 2007
12 Discontinued operations continued
Profit from discontinued operations comprises:
2007 2006
£m £m
Profit on disposal of air conditioning and refrigeration business 5.9 –
Profit for the period from trading of air conditioning and refrigeration business 0.2 0.9
Profit for the year from discontinued operations 6.1 0.9
The profit for the year from discontinued operations is derived as follows:
2007 2006
£m £m
Revenue – sale of goods 5.3 18.4
Expenses (4.9) (17.1)
Profit before financing and tax 0.4 1.3
Finance costs (net) – –
Profit before tax 0.4 1.3
Income tax expense (0.2) (0.4)
Profit for the year from discontinued operations 0.2 0.9
Cash flows relating to discontinued operations are as follows:
2007 2006
£m £m
Net cash inflows from operating activities (0.5) 1.3
Net cash outflows from investing activities – (0.3)
Net cash flows from financing activities – –
Net (decrease)/increase in cash and cash equivalents (0.5) 1.0
Assets classified as held for sale
The major classes of assets and liabilities classified as held for sale and measured at the lower of carrying amount and
fair value less costs to sell are:
2007 2006
£m £m
Property, plant and equipment – 0.1
Intangible assets – software – 0.1
Inventories – 2.1
Trade and other receivables – 3.9
Total assets – 6.2
Trade and other payables – (4.1)
Total liabilities – (4.1) 51 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements continued
13 Dividends
Amounts recognised in equity as distributions to equity holders in the year
2007 2006
£m £m
Equity dividends on ordinary shares:
Final dividend for the year ended 31 March 2006 of 14.4p (2005: 14.4p) 3.8 3.8
Interim dividend for the year ended 31 March 2007 of 7.2p (2006: 7.2p) 1.9 1.9
Total amounts recognised as equity distributions during the year 5.7 5.7
Proposed for approval at the AGM
2007 2006
£m £m
Equity dividends on ordinary shares:
Final dividend for the year ended 31 March 2007 of 14.7p (2006: 14.4p) 3.9 3.8
14 Earnings per share
Basic earnings per share is calculated by dividing the net profit for the year attributable to ordinary equity holders of the
parent by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share is the basic earnings per share after allowing for the dilutive effect of the conversion into
ordinary shares of the weighted average number of options outstanding during the period. 
Basic earnings per share on discontinued operations is 22.9p (2006: 3.2p).
In addition earnings per share from ongoing activities including exceptional items of 26.1p (2006: 19.6p) and excluding
exceptional items of 25.0p (2006: 19.6p) have been presented to provide additional information to shareholders. These
have been calculated on attributable ongoing profits of £6.9m (2006: £5.7m) and exceptional items net of tax £0.3m
(2006: (£0.1m))
The following reflects the income and share data used in the basic and diluted earnings per share computations:
2007 2006
£m £m
Profit for the year from continuing operations attributable to equity 
shareholders of the parent – before exceptionals 6.6 5.2
Exceptional items net of tax – all continuing (1.0) (0.1)
Profit for the year from continuing operations attributable 
to equity holders of the parent – after exceptionals 5.6 5.1
Profit for the year from discontinued operations attributable 
to equity holders of the parent 6.1 0.9
Profit for the year attributable to equity holders of the parent
– after exceptionals 11.7 6.0
2007 2006
million million
Weighted average number of shares for basic earnings per share 26.4 26.4
Effect of dilution – share options – –
Adjusted weighted average number of shares for diluted earnings per share 26.4 26.4
At the year end there were 1.0 million ordinary share options in issue that could potentially dilute earnings per share in
the future but are not included in the calculation at the year end because they are anti-dilutive (2006: 1.1 million). Notes to the group financial statements continued
52 ACAL plc annual report and accounts for the year ended 31 March 2007
15 Acquisitions
On 13 October 2006, the Group acquired the remaining 28.4% of the issued share capital of Computer Parts
International Limited for a cash consideration of £6.7 million. The purchase gave rise to further goodwill of £4.8 million.
The acquisition gave rise to no other gains or losses during the year.
16 Property, plant and equipment
Freehold Leasehold Plant and
property improvements equipment Total
£m £m £m £m
Cost
At 1 April 2005 2.6 2.8 13.8 19.2
Additions – 0.2 2.0 2.2
Disposals – – (2.5) (2.5)
Disclosed as held for sale in the year – – (0.3) (0.3)
Exchange adjustments – – 0.1 0.1
At 31 March 2006 2.6 3.0 13.1 18.7
Additions 0.1 – 1.7 1.8
Disposals – – (1.3) (1.3)
Exchange adjustments – – (0.2) (0.2)
At 31 March 2007 2.7 3.0 13.3 19.0
Depreciation
At 1 April 2005 0.9 1.6 9.8 12.3
Charge for the year 0.1 0.3 1.7 2.1
Disposals – – (2.3) (2.3)
Disclosed as held for sale in the year – – (0.2) (0.2)
Exchange adjustments – – 0.1 0.1
At 31 March 2006 1.0 1.9 9.1 12.0
Charge for the year – 0.3 1.6 1.9
Disposals – – (1.2) (1.2)
Exchange adjustments ––––
At 31 March 2007 1.0 2.2 9.5 12.7
Net book amount at 31 March 2007 1.7 0.8 3.8 6.3
Net book amount at 31 March 2006 1.6 1.1 4.0 6.7
Net book amount at 31 March 2005 1.7 1.2 4.0 6.9
Freehold property includes land with a cost of £0.5 million (2006: £0.5 million) that is not subject to depreciation.
Assets held under finance leases with a net book amount of £nil (2006: £nil) are included in plant and equipment.
Capital expenditure commitments
2007 2006
£m £m
Capital expenditure commitments for tangible fixed assets for which 
no provision has been made 0.2 0.4 53 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements continued
17 Goodwill
Subsidiary
companies
£m
Deemed cost
At 1 April 2005 48.7
Exchange adjustments 0.1
Acquisition of a subsidiary –
At 31 March 2006 48.8
Exchange adjustments (0.1)
Acquisition of shares in a subsidiary 4.8
At 31 March 2007 53.5
Goodwill is not amortised but is subject to annual impairment testing.
Goodwill arising in the year relates to the acquisition of the remaining shares in Computer Parts International Limited
which is part of the Parts Services division. Further information is disclosed in Note 15.
18 Impairment testing of goodwill
The carrying amount of goodwill is divided as follows:
2007 2006
£m £m
ATM Parts Company Limited 5.4 5.4
Computer Parts International Limited 8.9 4.1
UK electronics businesses 34.4 34.4
Other 4.8 4.9
53.5 48.8
Goodwill acquired through business combinations is allocated to cash-generating units (CGUs).
The recoverable amount of a CGU is based upon value in use calculations based upon the three year business plans
approved by the Board. Cash flows beyond the plan period are extrapolated using a 3% growth rate (2006: 3%). This is
based on the historic performance of the Group. This rate is believed to be reasonable in the light of historical
experience of the markets in which the Group operates. This rate does not exceed the average long-term growth rate
for the relevant markets. The discount rate applied to cash flow projections, based upon management’s expectations of
the weighted average cost of capital, is 8% (2006: 8%).
The impairment review results in no impairment of the goodwill carrying value. Notes to the group financial statements continued
54 ACAL plc annual report and accounts for the year ended 31 March 2007
19 Intangible assets – software
£m
Cost
At 1 April 2005 9.1
Additions 0.3
Disposals (0.4)
Disclosed as held for sale in the year (0.2)
At 31 March 2006 8.8
Additions 0.4
Disposals (0.4)
At 31 March 2007 8.8
Amortisation
At 1 April 2005 3.4
Amortisation 1.1
Disposals (0.4)
Disclosed as held for sale in the year (0.1)
At 31 March 2006 4.0
Amortisation 1.2
Disposals (0.3)
At 31 March 2007 4.9
Net book amount at 31 March 2007 3.9
Net book amount at 31 March 2006 4.8
Net book amount at 31 March 2005 5.7
Included in amortisation is an impairment of £0.2 million.
The computer software capitalised principally relates to the implementation of one system through the majority of the
Electronics and IT Solutions businesses. The ERP system has a carrying amount of £3.3 million (2006: £4.5 million) and a
remaining amortisation period of 4.4 years.
Capital expenditure commitments in relation to IT software at 31 March 2007 were £nil (2006: £nil).
20 Investments in associates
2007 2006
£m £m
Cost
At 1 April 2006 4.7 3.9
Share of profit for the year 0.6 0.4
Exchange adjustments (0.1) 0.5
Dividends received from associates (0.2) (0.1)
At 31 March 2007 5.0 4.7
Country of % equity interest
incorporation 2007 2006
Principal associates
Ceratech Holdings PLC* England 30 30
Scientific Digital Business (Pte) Ltd Singapore 40 40
Westech Electronics (Pte) Ltd Singapore 36.3 36.7
* Indirectly held. 55 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements continued
20 Investments in associates continued
Westech Electronics Limited, an electronics and engineering solutions provider, is listed on the Singapore Stock
Exchange. The investment had a book value at 31 March 2007 of £4.4 million (2006: £4.1 million) and a market value
of £3.6 million (2006: £3.8 million).
The other associates are private entities which are not listed on any public exchange and therefore there is no published
quotation price for the fair value of these investments.
The investments are held by Acal plc and Centre Industries Limited.
The following tables provide summarised information on the Group’s investment in associate undertakings:
Share of associates’ balance sheets
2007 2006
£m £m
Current assets 10.7 11.8
Non-current assets 1.4 1.3
Share of gross assets 12.1 13.1
Current liabilities (7.0) (8.3)
Non-current liabilities (0.1) (0.1)
Share of gross liabilities (7.1) (8.4)
Share of net assets 5.0 4.7
Summarised income statement information in respect of the Group’s associates is set out below:
Share of associates’ revenue and profit
2007 2006
£m £m
Revenue 39.9 32.3
Profit 0.6 0.4
21 Other financial assets
2007 2006
£m £m
Cost
At 1 April 2006 0.3 2.2
Effect of adoption of IAS 32 and IAS 39 – 0.4
Disposals – (2.3)
At 31 March 2007 0.3 0.3
Non-current 0.3 0.3
Available-for-sale financial assets consist of investments in ordinary shares, and therefore have no fixed maturity date or
coupon rate.
They are unlisted securities and are stated at cost as management believes that there is no readily available fair value. Notes to the group financial statements continued
56 ACAL plc annual report and accounts for the year ended 31 March 2007
22 Inventories
2007 2006
£m £m
Finished goods and goods for resale 23.7 21.4
23 Trade and other receivables
2007 2006
£m £m
Trade receivables 51.0 50.1
Amounts owed by associates 0.1 0.1
Other debtors 1.6 2.0
Prepayments and accrued income 6.1 5.8
58.8 58.0
Trade and other receivables are generally non-interest bearing and on 30-60 day terms.
Trade debtors are stated net of provisions of £0.8m.
24 Cash and cash equivalents
2007 2006
£m £m
Cash at bank and in hand 11.9 16.9
Cash at bank earns interest at floating rates based on daily bank deposit rates. 
25 Financial liabilities
Current Non-current
Effective
interest rate 2007 2006 2007 2006
% Maturity £m £m £m £m
Bank overdrafts Variable On demand 7.1 6.1 – –
Secured:
Bank loans See below 0.1 0.1 0.1 0.2
Unsecured:
Revolving credit facility (£10m) Variable 31 Oct 2006 – 5.0 – –
Revolving credit facility (£25m) Variable 1 Oct 2008 – – 10.0 12.0
Total 7.2 11.2 10.1 12.2
Interest on overdrafts is based on floating rates linked to LIBOR.
Interest rates on floating rate loans are all linked to LIBOR.
Secured bank loans
The secured bank loans comprise a euro denominated loan of £0.2m which carries a fixed interest rate of 4.95%. The
debt is secured on certain property, plant and equipment.
Revolving credit facility (£25m)
The revolving credit facility was entered into on 12 February 2004 and runs until 1 October 2008. Loans have variable
interest rates linked to LIBOR.
Financial covenants
Revolving credit facilities
The debt is subject to certain financial covenants relating to gearing and net worth. In the event of a breach of these
covenants, and during the period that the breach continues, the debt and any outstanding interest may become due
and payable immediately on demand from the banks. In addition the facilities may be repaid with 14 days notice. 57 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements continued
25 Financial liabilities continued
The maturity of the borrowings is as follows:
Year ended 31 March 2007
Within 2-5 Over 5
1 year years years Total
£m £m £m £m
Floating rate 7.2 10.1 – 17.3
Year ended 31 March 2006
Within 2-5 Over 5
1 year years years Total
£m £m £m £m
Floating rate 11.2 12.2 – 23.4
The carrying amount of the Group’s borrowings is denominated in the following currencies:
2007 2006
£m £m
Pound sterling 10.5 17.1
Euro 2.8 4.4
US dollar 3.6 1.5
Other currencies 0.3 0.4
17.3 23.4
At 31 March 2007, the Group had available £15.0 million (2006: £18.0 million) of undrawn committed borrowing
facilities in respect of which all conditions precedent had been met.
26 Movements in cash and net debt
31 March Foreign 31 March
2006 Cash flow exchange 2007
£m £m £m £m
Cash at bank and in hand 16.9 11.9
Overdrafts (6.1) (7.1)
Cash and cash equivalents 10.8 (6.0) – 4.8
Loan capital under one year (5.1) (0.1)
Loan capital over one year (12.2) (10.1)
Total loan capital (17.3) 7.1 – (10.2)
Net debt (6.5) 1.1 – (5.4) Notes to the group financial statements continued
58 ACAL plc annual report and accounts for the year ended 31 March 2007
26 Movements in cash and net debt continued
31 March Foreign 31 March
2005 Cash flow exchange 2006
£m £m £m £m
Cash at bank and in hand 15.9 16.9
Overdrafts (7.9) (6.1)
Cash and cash equivalents 8.0 2.7 0.1 10.8
Loan capital under one year (0.1) (5.1)
Loan capital over one year (20.2) (12.2)
Total loan capital (20.3) 3.0 – (17.3)
Net debt (12.3) 5.7 0.1 (6.5)
27 Provisions
Onerous Severance
contracts indemnity Other Total
£m £m £m £m
At 1 April 2006 0.6 0.3 0.8 1.7
Arising during the year 2.5 0.6 0.5 3.6
Utilised (0.9) (0.2) (0.2) (1.3)
At 31 March 2007 2.2 0.7 1.1 4.0
Analysis of total provisions:
2007 2006
£m £m
Current 2.1 1.0
Non-current 1.9 0.7
4.0 1.7
Onerous contracts
The onerous contracts provision relates to lease obligations in respect of unoccupied properties. Onerous contract
provisions are expected to be used over periods of up to 5 years. The increase from 2006 reflects the provision for
retained obligations arising from the disposal of the AC&R business.
Severance indemnity
The severance indemnity provision relates to severance costs payable to employees. The majority of the provisions are
expected to be used up within one year.
Other
The other provision relates to other claims and is expected to be utilised within one year.  59 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements continued
28 Financial risk management objectives and policies
The Group’s principal financial instruments, other than forward currency contracts, comprise bank loans, overdraft
facilities, cash and short-term deposits. The Group’s financial instrument policies can be found in the accounting policies
in note 2. The main risks arising from the Group’s financial instruments are interest rate risk, liquidity risk and credit risk.
The Board agrees policies for managing each of these risks and they are summarised below:
Interest rate risk
The Group’s exposure to market risk for changes in interest rates relates to the Group’s debt obligations. The Group has
not hedged against interest rate risk. Based on the Group’s net debt position at the year end, a 1% change in interest
rates would affect costs by approximately £52,000 (2006: £61,000).
Liquidity risk
The Group mitigates liquidity risk by managing the cash generation of its operations, combined with bank borrowings
and long-term debt. In its funding strategy the Group’s objective is to maintain a balance between the continuity of
funding and flexibility through the use of overdrafts and bank loans.
Excess cash used in managing liquidity is placed on interest-bearing deposit with maturities fixed at no more than 
three months.
Credit risk
There are no significant concentrations of credit risk within the Group.
The Group is exposed to some credit risk that is primarily attributable to its trade and other receivables. This is
minimised by dealing with recognised, creditworthy third parties. It is the Group’s policy that all customers who wish to
trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an
ongoing basis with the result that the Group’s exposure to bad debts is not significant. The amounts included in the
balance sheet are net of allowances for doubtful debts, which have been estimated by management based on prior
experience and known factors at the balance sheet date which may indicate that a provision is required.
With respect to credit risk relating to cash and cash equivalents the Group’s exposure to credit risk arises from default of
the counterparty, with the maximum exposure equal to the carrying amount of these instruments. Risk is limited as the
Group only maintains liquid funds with banks with high credit ratings.
Currency risk
Currency risk is managed through the use of forward exchange contracts and are fair valued in the income statement.
29 Financial assets and liabilities
Fair values 
Set out below is a comparison by category of carrying amounts and fair values of all the Group’s financial instruments
that are carried in the financial statements.
Carrying Fair Carrying Fair
amount value amount value
2007 2007 2006 2006
£’000 £’000 £’000 £’000
Financial assets
Cash and cash equivalents 11.9 11.9 16.9 16.9
Other financial assets 0.3 0.3 0.3 0.3
Financial liabilities
Bank overdrafts and short-term borrowings (7.2) (7.2) (11.2) (11.2)
Interest bearing loans and borrowings
Floating rate borrowings (10.0) (10.0) (12.0) (12.0)
Fixed rate borrowings (0.1) (0.1) (0.2) (0.2)
Short term trade receivables and payables have been excluded from the above table as book values approximate 
fair values. Notes to the group financial statements continued
60 ACAL plc annual report and accounts for the year ended 31 March 2007
30 Trade and other payables
2007 2006
£m £m
Trade payables 37.1 36.3
Other payables 5.0 7.5
Accrued expenses and deferred income 16.8 14.2
58.9 58.0
Trade payables are non-interest bearing and are settled taking into account local good practice.
Other payables are non-interest bearing and settled throughout the year.
Accruals are non-interest bearing and settled throughout the year.
Deferred income is recognised throughout the year.
31 Share capital
Authorised
2007 2006
million million
Ordinary shares of 5p each 1.75 1.75 
Allotted, called up and fully paid
2007 2006
Number £m Number £m
Ordinary shares of 5p each 26,418,354 1.3 26,416,854 1.3
26,418,354 1.3 26,416,854 1.3
There were 1,500 shares issued during the year at a price of £3.35 per share (2006: nil).
32 Reserves
Attributable to equity holders of the parent Minority Total
interests equity
Share
Issued Share scheme Retained Other
capital premium reserve earnings reserves Total
£m £m £m £m £m £m £m £m
At 31 March 2005 1.3 38.0 0.1 30.8 1.1 71.3 1.2 72.5
Effect of adopting IAS 32 and IAS 39 –––– 0.4 0.4 – 0.4
At 1 April 2005 1.3 38.0 0.1 30.8 1.5 71.7 1.2 72.9
Total recognised income and 
expense for the year – – – 3.4 0.3 3.7 0.6 4.3
Share-based payments – – 0.1 – – 0.1 – 0.1
Equity dividends – – – (5.7) – (5.7) – (5.7)
Dividends paid to minority interests –––––– (0.1) (0.1)
Movements in associates reserves – – – 0.1 – 0.1 – 0.1
At 31 March 2006 1.3 38.0 0.2 28.6 1.8 69.9 1.8 71.7
Total recognised income and 
expense for the year – – – 12.1 (0.6) 11.5 0.2 11.7
Share-based payments – – 0.1 – – 0.1 – 0.1
Equity dividends – – – (5.7) – (5.7) – (5.7)
Dividends paid to minority interests –––––– (0.1) (0.1)
Acquisition of minority interests –––––– (1.9) (1.9)
At 31 March 2007 1.3 38.0 0.3 35.0 1.2 75.8 – 75.8 61 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements continued
32 Reserves continued
Nature and purpose of reserves:
Share Scheme reserve
The share scheme reserve is used to account for share based payments.
33 Other reserves
Net Currency
unrealised Merger translation
gains reserve reserve reserve Total
£m £m £m £m
At 1 April 2005 0.4 0.8 0.3 1.5
Total recognised income and expense for the year (0.4) – 0.7 0.3
At 31 March 2006 – 0.8 1.0 1.8
Total recognised income and expense for the year – – (0.6) (0.6)
At 31 March 2007 – 0.8 0.4 1.2
Nature and purpose of other reserves
Net unrealised gains reserve
The net unrealised gains reserve is used to record changes in the fair value of available-for-sale financial assets.
Merger reserve
The merger reserve arose as a consequence of the acquisition in 1987 of Centre Industries Limited and Acal Auriema Limited.
Foreign currency translation reserve 
The foreign currency translation reserve is used to record exchange differences arising from the translation of the
financial statements of foreign subsidiaries and other foreign currency investments.
34 Commitments and contingencies
Operating lease commitments
The Group leases various buildings under non-cancellable operating lease agreements. The leases have varying terms,
escalation clauses and renewal rights.
The Group also leases certain motor vehicles and items of machinery. These leases have an average life of between 
3 and 5 years with no renewal option included in the contracts. There are no restrictions placed upon the lessee by
entering into these leases.
Future minimum rentals payable under non-cancellable operating leases are as follows:
2007 2006
£m £m
Due within one year 3.9 2.8
Due after one year but not more than five years 9.2 8.6
Due after more than five years 4.6 3.0
17.7 14.4
Contingent liabilities
There were no material contingent liabilities at 31 March 2007 or 31 March 2006.
Guarantees
At 31 March 2007 Group companies had given counter indemnities to bankers in respect of their guarantees to the
value of £2.3 million. (2006: £2.2 million). The Group also has guarantees and offset arrangements supporting
subsidiary bank facilities. Notes to the group financial statements continued
62 ACAL plc annual report and accounts for the year ended 31 March 2007
35 Share-based payment plans
The Group operates an approved and an unapproved executive share option scheme, the rules of which are similar in all
material respects. The grant of options to executive directors and senior management is recommended by the
Remuneration Committee on the basis of their contribution to the Group’s success. The options vest after three years.
The exercise price of the options is equal to the closing mid-market price of the shares on the trading day previous to the
date of the grant. The exercise of options is subject to the meeting of performance criterion; namely, that the growth in
the company’s earnings per share in any three year period before exercise must have exceeded the percentage increase
in the Retail Price Index over the same period plus two per cent per annum. Exercise of an option is subject to
continued employment. The life of each option granted is seven years. There are no cash settlement alternatives.
Options are valued using the Black-Scholes option-pricing model. No performance conditions were included in the fair
value calculations. The fair value per option granted and the assumptions used in the calculation are as follows:
Grant date 30 June 2006 12 July 2005 17 June 2004
Share price at grant date £3.675 £3.35 £4.80
Exercise price £3.675 £3.35 £4.80
Number of employees 46 59 70
Shares under option 116,500 122,300 141,500
Vesting period (years) 3 3 3
Expected volatility 30.8% 28.0% 28.7%
Option life (years) 7 7 7
Expected life (years) 4.5 4.5 4.5
Risk free rate 4.8% 4.5% 5.06%
Expected dividends expressed as a dividend yield 5.0% 4.3% 4.3%
Fair value £0.74 £0.70 £1.03
The expected volatility is based on historical volatility over the previous five years. The expected life is the average
expected period to exercise. The risk free rate of return is the yield on zero-coupon UK government bonds of a term
consistent with the assumed option life.
The total charge for the year relating to employer share based payment schemes was £0.1 million (2006: £0.1 million),
all of which relates to equity-settled share based payment transactions. After deferred tax the total charge was £0.1
million (2006: £0.1 million).
Outstanding share options
A summary of the options over ordinary shares that have been granted under various Group share option schemes and
remain outstanding at 31 March 2007 is given below:
Outstanding Granted Expired Forfeited Exercised Outstanding Exercise
at 31 March during the during the during the during the at 31 March price Exercise
2006 year year year year 2007 (pence) dates
104,000 – (104,000)––– 462.50 2002-2006
230,000 – – (5,000) – 225,000 517.50 2003-2007
52,000 –––– 52,000 537.50 2004-2008
165,500 – – (28,000) – 137,500 515.00 2004-2008
186,000 – – (19,000) – 167,000 586.50 2005-2009
148,000 – – (16,000) – 132,000 525.00 2006-2010
123,750 – – (20,000) – 103,750 480.00 2007-2011
120,800 – – (12,500) (1,500) 106,800 335.00 2008-2012
– 116,500 – (4,500) – 112,000 367.50 2009-2013
1,130,050 116,500 (104,000) (105,000) (1,500) 1,036,050
As part of the acquisition of Sedgemoor, certain option holders in Sedgemoor converted their holdings to options in
Acal. The movements on these options are as follows:
Outstanding Lapsed Exercised Outstanding
at 31 March during the during the at 31 March Exercise price
2006 year year 2007 (pence) Exercise dates
6,417 (4,278) – 2,139 465.72 2001-2008 63 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements continued
35 Share-based payment plans continued
Changes in share options
A reconciliation of option movements over the year to 31 March 2007 is shown below:
2007 2006
Weighted Weighted
average average
Number exercise Number exercise
(000) price (000) price
Outstanding at 1 April 2006 1,136 £5.02 1,562 £5.02
Granted 116 £3.68 122 £3.35
Exercised (1) £3.35 ––
Expired (106) £4.63 (183) £3.63
Forfeited (105) £4.95 (365) £5.18
Outstanding at 31 March 2007 1,038 £4.91 1,136 £5.02
Exercisable at 31 March 2007 713 £5.36 738 £5.28
The weighted average remaining contractual life for the share options outstanding as at 31 March 2007 is 2.7 years
(2006: 3.1 years).
The range of exercise prices for options outstanding at the end of the year was £3.35 to £5.865 (2006: £3.35 
to £5.865).
36 Pensions
Defined contribution schemes
The Group makes payments to various defined contribution pension schemes, the assets of which are held in 
separately administered funds. In the United Kingdom the relevant scheme is the Acal Group Employee Pension 
Scheme (‘the Acal scheme’). Contributions by both employees and Group companies are held in externally invested
trustee-administered funds.
The Group contributes a specified percentage of earnings for members of the Acal scheme, and thereafter has no
further obligations in relation to the Acal scheme. The total cost charged to income in relation to the Acal scheme 
was £646,000 (2006: £708,000). Employer contributions in respect of overseas pension schemes were £689,000 (2006:
£733,000). Total contributions payable in the next financial year are expected to be at rates broadly similar to those in
2006/7 but based on actual salary levels in 2007/8.
At the year end, 254 employees were active members of the scheme (2006: 270).
Defined benefit schemes
The acquisition of the Sedgemoor Group in June 1999 brought with it certain defined benefit pension schemes, the
principal one of which was the Sedgemoor Group Pension Fund (together ‘the Sedgemoor Scheme’). The Sedgemoor
Scheme is funded by the Company, provides retirement benefits based on final pensionable salary and its assets are held
in a separate trustee-administered fund. 
Following the acquisition of Sedgemoor, the Sedgemoor Scheme was closed to new members. Shortly thereafter
employees were given the opportunity to join the Acal Scheme and future service benefits ceased to accrue to members
under the Sedgemoor Scheme. 
Contributions to the Sedgemoor Scheme are determined in accordance with the advice of independent, professionally
qualified actuaries. Notes to the group financial statements continued
64 ACAL plc annual report and accounts for the year ended 31 March 2007
36 Pensions continued
The latest actuarial valuation of the scheme was carried out as at 31 March 2006 and updated to 31 March 2007 by a
qualified actuary. The main actuarial assumptions used are set out as follows:
2007 2006
Rate of increase of salaries n/a n/a
Rate of increase of pensions in payment 3.1% 3.0%
Discount rate 5.4% 5.0%
Inflation assumption 3.1% 3.0%
The discount rate is based on over 15 year AA grade sterling corporate bond yields at the balance sheet date. The
expected rate of return on scheme assets is derived as an average, weighted according to the portfolio allocation at the
balance sheet date. The expected rates of return on each class of asset are shown below. Pensioner mortality
assumptions are based on the ‘92 series’ tables, issued by the Institute and Faculty of Actuaries, appropriate to the
member’s year of birth rated up by one year.
The amounts recognised in the income statement in respect of defined benefit schemes are as follows:
2007 2006
£m £m
Expected return on scheme assets 1.7 1.6
Interest cost on scheme liabilities (1.9) (1.7)
Other finance costs (note 10) (0.2) (0.1)
The net finance cost is reported within interest expense.
The amounts taken to the statement of recognised income and expense are as follows:
2007 2006
£m £m
Actual return on scheme assets 1.3 4.9
Less: expected return on scheme liabilities (1.7) (1.6)
(0.4) 3.3
Actuarial gains/(losses) on scheme liabilities 1.3 (6.7)
Actuarial gains/(losses) recorded in the statement of recognised income and expense 0.9 (3.4)
Since the date of transition the cumulative value of actuarial gains and losses recorded in the statement of recognised
income and expense is £2.5 million loss.
The fair value of assets and expected rates of return are used to determine the amounts recognised in the balance sheet
as follows:
2007 2007 2006 2006
£m £m
Equities 7.6% 15.9 7.2% 16.3
Gilts 4.6% 14.1 4.2% 13.7
Cash 4.7% 0.5 4% 0.1
Fair value of scheme assets 30.5 30.1
Present value of funded defined benefit obligations (37.9) (39.2)
Liability recognised in the balance sheet (7.4) (9.1) 65 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements continued
36 Pensions continued
Changes in the present value of the defined benefit obligation are as follows:
2007 2006
£m £m
Opening defined benefit obligation 39.2 33.5
Net interest cost 1.9 1.7
Actuarial (gains)/losses on scheme liabilities (1.3) 6.7
Settlements – (1.0)
Benefits paid (1.9) (1.7)
Closing defined benefit obligation 37.9 39.2
Changes in the fair value of the scheme assets are as follows:
2007 2006
£m £m
Opening fair value of plan assets 30.1 27.1
Expected returns on scheme assets 1.7 1.6
Actuarial (losses)/gains on scheme assets (0.4) 3.3
Contributions 1.0 0.7
Settlements – (0.9)
Benefits paid (1.9) (1.7)
Closing fair value of plan assets 30.5 30.1
History of experience gains and losses
2007 2006 2005 2004 2003
£m £m £m £m £m
Fair value of scheme assets 30.5 30.1 27.1 25.9 21.1
Defined benefit obligations (37.9) (39.2) (33.5) (32.8) (29.6)
Deficit in the scheme (7.4) (9.1) (6.4) (6.9) (8.5)
Experience adjustments on scheme assets (0.4) 3.3 0.7 2.4 (5.2)
Experience adjustments on scheme liabilities 1.3 (6.7) (0.7) (1.1) (2.0) Notes to the group financial statements continued
66 ACAL plc annual report and accounts for the year ended 31 March 2007
37 Related party disclosures
The Group’s principal subsidiaries are listed in the following table:
Group effective shareholding held
Country of incorporation by Parent by Subsidiary
Name and nature of business and registration Type of share Company Undertakings
Agency, marketing and distribution
Acal IT Ltd England Ordinary Shares 100% –
Acal Technology Ltd England Ordinary Shares – 100%
ATM Parts Company Ltd England Ordinary Shares 100% –
Computer Parts International Ltd England Ordinary Shares 100% –
EAF (UK) Ltd England Ordinary Shares – 100%
Stortech Electronics Ltd England Ordinary Shares – 100%
Vertec Scientific Ltd England Ordinary Shares – 100%
Acal SAS France Ordinary Shares – 100%
Mecodis SA France Ordinary Shares – 100%
Acal NV/SA Belgium Ordinary Shares – 100%
Acal Networking and Security NV/SA Belgium Ordinary Shares – 100%
Acal GmbH Germany Ordinary Shares – 100%
EAF Computer Service Supplies GmbH Germany Ordinary Shares – 100%
Acal AB Sweden Ordinary Shares – 100%
Acal Nederland BV Netherlands Ordinary Shares – 100%
Acal Italia Srl Italy Ordinary Shares – 100%
Acal Iberia SL Spain Ordinary Shares – 100%
Management services
Acal Management Services Ltd England Ordinary Shares 100% –
All subsidiaries operate in their country of incorporation. All subsidiaries have a 31 March year end and have the same
voting rights as the effective interest.
The following table provides the total amount of transactions which have been entered into with related parties for the
relevant year.
Related Party
Sales to Amounts owed
related by related
parties parties
£m £m
Associates
2006/7 0.5 –
2005/6 0.2 –
All other activities and balances with related parties total less than £50,000 and have therefore not been disclosed.
The Group considers key management personnel as defined under IAS 24 Related Party Disclosures to be the Directors
of the Group. Disclosures on directors’ remuneration are set out in the remuneration report on pages 24 to 27.
Associates
For details of the Group’s investments in associates see note 20.
Terms and conditions of transactions with related parties
All transactions with related parties were on an arms length basis. Outstanding balances at year-end are unsecured and
settlement occurs in cash.
Transactions with other related parties
Details of transactions with Directors are detailed in the remuneration report on pages 24 to 27. 67 ACAL plc annual report and accounts for the year ended 31 March 2007
Notes to the group financial statements continued
38 Events after the balance sheet date
A final dividend of 14.7p per share (2006: 14.4p) amounting to a dividend of £3.9m (2006: £3.8m) was declared by the Directors
at their meeting on 25 May 2007. These financial statements do not reflect this dividend payable.
39 Significant accounting judgements and estimates
Estimation uncertainty
Key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
The most significant areas in which assumptions are made and estimates used are in determining:
• the useful economic lives of property, plant and equipment and intangible assets
• any impairment of assets including goodwill and inventories
• the quantification of provisions
• the fair values of assets acquired in a business combination
• the underlying assumptions inherent in the calculation of the pension liability
The Group’s accounting policies applied in respect of the above are set out in note 2 to these financial statements.  68 ACAL plc annual report and accounts for the year ended 31 March 2007
Acal plc
Company financial statements
for the year ended 31 March 2007 69 ACAL plc annual report and accounts for the year ended 31 March 2007
Report of the auditors
Independent auditor’s report to the members of Acal plc
We have audited the parent company financial statements of Acal plc for the year ended 31 March 2007 which
comprise the Balance Sheet and the related notes 1 to 13. These parent company 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. 
We have reported separately on the group financial statements of Acal plc for the year ended 31 March 2007.
This report is made solely to the company’s members, as a body, in accordance with Section 235 of the
Companies Act 1985. Our audit work has been undertaken so that we might state to the company’s members
those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the
company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors are responsible for preparing the Annual Report, the Directors’ Remuneration Report and the
parent company financial statements in accordance with applicable United Kingdom law and Accounting
Standards (United Kingdom Generally Accepted Accounting Practice) as set out in the Statement of Directors’
Responsibilities.
Our responsibility is to audit the parent company 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 parent company financial statements give a true and fair view
and whether 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. We also report to you
whether in our opinion the information given in the directors’ report is consistent with the parent company
financial statements. 
In addition we 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 read other information contained in the Annual Report and consider whether it is consistent with the
audited parent company financial statements. The other information comprises only the Directors’ Report, the
Chairman’s Statement, the Chief Executive’s Review, the Finance Director’s Review, the Board Report on
Corporate Governance and the unaudited part of the Director’s Remuneration Report. We consider the
implications for our report if we become aware of any apparent misstatements or material inconsistencies with
the parent company financial statements. Our responsibilities do not extend to any other information.
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 parent company 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 parent company financial statements, and of whether the accounting policies are
appropriate to the 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 parent company
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 parent company financial statements and the part
of the Directors’ Remuneration Report to be audited. 70 ACAL plc annual report and accounts for the year ended 31 March 2007
Opinion
In our opinion :
• 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 company’s affairs as at 31 March 2007; 
• 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 parent company financial statements.
Ernst & Young LLP
Registered auditor
London 4 June 2007
Report of the auditors continued Company balance sheet
at 31 March 2007
71 ACAL plc annual report and accounts for the year ended 31 March 2007
2007 2006
notes £m £m
Fixed assets
Investments 4 123.4 116.6
Current assets
Debtors 5 0.9 11.6
Cash at bank and in hand 0.3 0.6
Total current assets 1.2 12.2
Creditors: Amounts falling due within one year 6 (24.3) (29.2)
Net current liabilities (23.1) (17.0)
Total assets less current liabilities 100.3 99.6
Creditors: Amounts falling due after more than one year 6 (10.0) (12.0)
Net assets 90.3 87.6
Capital and reserves
Called up share capital 8 1.3 1.3
Share premium account 9 38.0 38.0
Merger reserve 9 3.0 3.0
Share scheme reserve 9 0.3 0.2
Profit and loss account 9 47.7 45.1
Equity shareholders’ funds 90.3 87.6
These financial statements were approved by the Board of Directors on 4 June 2007 and signed on its behalf by:
R J Moon J S Virdee
Chairman Finance Director Notes to the Company financial statements
72 ACAL plc annual report and accounts for the year ended 31 March 2007
1 Basis of accounting
The financial statements are prepared under the historical cost convention and in accordance with applicable UK
accounting standards.
The Company has taken advantage of the provisions of FRS 1 (revised) which exempts companies which are part of a
group for which a consolidated cash flow statement is prepared, from preparing a cash flow statement. The required
consolidated cash flow statement has been included within the consolidated financial statements of the Group.
2 Summary of significant accounting policies
Income recognition
Dividend income from subsidiary and associated undertakings is recognised in the profit and loss account on receipt of
the cash.
Fixed asset investments
Investments in subsidiary and associate undertakings are stated initially at cost being the fair value of the consideration
given and including directly attributable transaction costs. The carrying values are reviewed for impairment if events or
changes in circumstances indicate the carrying values may not be recoverable. 
Financial assets
Investments are initially recognised at cost, being the fair value of the consideration given and including directly
attributable transaction costs associated with the investment. 
After initial recognition, investments in equity shares are treated as available for sale financial assets and are measured
at their fair value with any gains or losses recognised in equity. When the investment is derecognised or impaired, the
cumulative gain or loss previously reported in equity is included in the income statement. 
Investments in equity instruments that do not have a quoted market price in an active market and whose fair value can
not be reliably valued are measured at cost. 
At each balance sheet date, the Group reviews the carrying value of its assets to determine whether there is any
indication that the assets have suffered an impairment loss. If any such indication exists or when annual testing for an
asset is required, the recoverable amount of the asset is estimated in order to determine the extent of the impairment
loss, if any.
Share based payment scheme
In preparing the financial statements the Company has adopted FRS20 ‘share-based payments’. Although the Company
does not incur a charge under this standard, the issuance by the Company to its subsidiaries of a grant over the
Company’s options, represents additional capital contribution by the Company in its subsidiaries. The additional capital
contribution is based on the fair value of the grant issued, allocated over the underlying grant’s vesting period. 
3 Profit of the parent company
The profit of the parent company for the financial year amounted to £8.3 million (2006: £6.6 million). By virtue of
section 230(4) of the Companies Act 1985, the Company is exempt from presenting a separate profit and loss account.
4 Fixed asset investments
Subsidiary Associated
undertakings undertakings Other Total
£m £m £m £m
At 1 April 2005 114.1 2.1 0.3 116.5
Share-based payments 0.1 – – 0.1
At 31 March 2006 114.2 2.1 0.3 116.6
Additions 6.7 – – 6.7
Share-based payments 0.1 – – 0.1
At 31 March 2007 121.0 2.1 0.3 123.4
Details of the principal subsidiary and associate undertakings are provided in notes 37 and 20 of the Group accounts.
Details of the addition is provided in note 15 of the Group accounts. Notes to the Company financial statements continued
73 ACAL plc annual report and accounts for the year ended 31 March 2007
5 Debtors
2007 2006
£m £m
Amounts falling due within one year:
Amounts owed by subsidiary undertakings – 11.1
Corporation tax 0.9 0.5
0.9 11.6
6 Creditors
2007 2006
£m £m
Amounts falling due within one year:
Bank loans and overdrafts 0.8 5.7
Amounts owed to subsidiary undertakings 22.8 23.2
Accruals and deferred income 0.7 0.3
24.3 29.2
Amounts falling due after more than one year:
Unsecured borrowings:
Term loans at market interest rates:
Repayable 1-2 years 10.0 12.0
The term loan falling due after more than one year is based on LIBOR plus a variable margin. This loan is repayable in
full on 1 October 2008.
7 Derivatives and financial instruments
The Company’s principal financial instruments comprise bank loans, overdraft facilities, bank balances and amounts due
from its subsidiary companies. The main purpose of these financial instruments is to provide finance for the Company
and its subsidiaries’ operations. 
The main risks arising from the Company’s financial instruments are interest rate risk, liquidity risk and credit risk.
Interest rate risk
The Company borrows at floating rates of interest. The company has not hedged against interest rate risk.
Credit risk
With respect to credit risk relating to cash and cash equivalents the Company’s exposure to credit arises from default of
the counter party, with the maximum exposure equal to the carrying amount of these instruments.
Foreign currency risk
The Company has not hedged against foreign currency exposure due to its minimal exposure to foreign currency
movements as its business is conducted primarily in UK sterling.
Market risk
At 31 March 2007, £10.8 million (2006: £17.7 million) of the Company’s revolving credit and overdraft facilities has
been drawn. These borrowings are at a floating interest rate of LIBOR plus margin and are therefore subject to market
risk through interest rate fluctuations. A 1% increase in LIBOR would increase the interest charge, and reduce the
Company profit before taxation, by £108,000 (2006: £177,000). Notes to the Company financial statements continued
74 ACAL plc annual report and accounts for the year ended 31 March 2007
7 Derivatives and financial instruments continued
Interest rate risk
The following table sets out the carrying amount, by maturity, of the Company’s financial instruments that are exposed
to interest rate risk:
Year ended 31 March 2007
Within 1-2 2-3 3-4 4-5 More than
1 year years years years years 5 years Total
£m £m £m £m £m £m £m
Floating rate
Cash at bank and in hand 0.3––––– 0.3
Bank overdrafts (0.8) ––––– (0.8)
Term bank loans – (10.0) –––– (10.0)
(0.5) (10.0) –––– (10.5)
Year ended 31 March 2006
Within 1-2 2-3 3-4 4-5 More than
1 year years years years years 5 years Total
£m £m £m £m £m £m £m
Floating rate
Cash at bank and in hand 0.6––––– 0.6
Bank overdrafts (0.7) ––––– (0.7)
Term bank loans (5.0) (12.0) –––– (17.0)
(5.1) (12.0) –––– (17.1)
Due to the short term trading nature of debts due from/due to subsidiary undertakings no interest is charged.
The Company borrows in UK sterling at LIBOR or base rates plus a margin.
Borrowing facilities
The Company has revolving credit facilities which provides available facilities of £25 million. (2006: £35 million).
Additionally, the Company has overdraft facilities of £9.6 million (2006: £11.75 million) to support the future 
activities of the business. 
The available but undrawn committed facilities at 31 March in respect of which all conditions had been met at that 
date are as follows:
Year ended 31 March 2007
Within 1-2 2-3 3-4 4-5 More than
1 year years years years years 5 years Total
£m £m £m £m £m £m £m
Unsecured banking facilities – 25.0–––– 25.0
Drawn bank loans – (10.0) –––– (10.0)
Bank overdrafts 8.8––––– 8.8
8.8 15.0–––– 23.8 Notes to the Company financial statements continued
75 ACAL plc annual report and accounts for the year ended 31 March 2007
7 Derivatives and financial instruments continued
Year ended 31 March 2006
Within 1-2 2-3 3-4 4-5 More than
1 year years years years years 5 years Total
£m £m £m £m £m £m £m
Unsecured banking facilities 10.0 25.0–––– 35.0
Drawn bank loans (5.0) (12.0) –––– (17.0)
Bank overdrafts 11.0––––– 11.0
16.0 13.0–––– 29.0
Fair values
Set out below is a comparison by category of book values and fair values of all the Company’s financial assets and
liabilities as at 31 March:
Book value Fair value
2007 2006 2007 2006
£m £m £m £m
Primary financial instruments
Financial liabilities
Bank overdrafts 0.8 0.7 0.8 0.7
Amounts owed to subsidiary undertakings 22.8 23.2 22.8 23.2
Bank loans 10.0 17.0 10.0 17.0
Financial assets
Cash at bank and in hand 0.3 0.6 0.3 0.6
Amounts owed by subsidiary undertakings – 11.1 – 11.1
8 Share capital
Allotted, Allotted,
called up called up 
and fully and fully
Authorised Authorised paid paid
Number £m Number £m
At 1 April 2006 35,000,000 1.75 26,416,854 1.3
Issued – – 1,500 –
At 31 March 2007 35,000,000 1.75 26,418,354 1.3
At 31 March 2007 there were outstanding options for employees to purchase up to 1,038,189 (2006: 1,136,467)
ordinary shares of 5p each between 2007 and 2013 at prices ranging from £3.35 per share to £5.865 per share. During
the year to 31 March 2007 options on 1,500 ordinary shares were exercised by employees under the terms of the
various share option schemes (2006: none). Notes to the Company financial statements continued
76 ACAL plc annual report and accounts for the year ended 31 March 2007
10 Reconciliation of shareholders’ funds and movements on reserves
Share Share
Called up premium Merger scheme Profit and
share capital account reserve reserve loss account Total
£m £m £m £m £m £m
At 31 March 2005 1.3 38.0 3.0 0.1 44.2 86.6
Profit for the year –––– 6.6 6.6
Dividends to shareholders –––– (5.7) (5.7)
Share-based payments – – – 0.1 – 0.1
At 31 March 2006 1.3 38.0 3.0 0.2 45.1 87.6
Profit for the year –––– 8.3 8.3
Dividends to shareholders –––– (5.7) (5.7)
Share-based payments – – – 0.1 – 0.1
At 31 March 2007 1.3 38.0 3.0 0.3 47.7 90.3
11 Related parties
The Company has taken advantage of the exemption given in FRS 8 not to disclose transactions with other 
Group companies.
12 Share-based payments
For detailed disclosures of share-based payments refer to Acal plc consolidated accounts, note 35.
13 Contingent liabilities
The parent company has given guarantees and offset arrangements to support bank facilities made available to
subsidiary undertakings. As at 31 March 2007 the relevant subsidiary bank borrowings amounted to £2.3 million 
(2006: £2.7 million). Five year record
77 ACAL plc annual report and accounts for the year ended 31 March 2007
2007 2006 2005 2004 2003
(IFRS) (IFRS) (IFRS) (UK GAAP) (UK GAAP)
£m £m £m £m £m
Group income statement
Turnover – ongoing activities 260.9 257.0 243.7 268.4 272.1
Profit before tax, goodwill and exceptionals 9.8 8.6 9.9 12.6 15.6
Amortisation of goodwill – – – (2.9) (2.8)
Exceptionals 0.4 (0.2) – (0.6) 0.6
Profit before tax 10.2 8.4 9.9 9.1 13.4
Tax (3.1) (2.7) (3.3) (4.2) (5.4)
Profit after tax from ongoing activities 7.1 5.7 6.6 4.9 8.0
Disposed activities 4.8 0.9 0.8 – –
Profit for the year 11.9 6.6 7.4 4.9 8.0
Attributable to:
Equity holders of the parent 11.7 6.0 7.0 4.7 8.0
Minority interests 0.2 0.6 0.4 0.2 –
Group balance sheet
Net debt (5.4) 6.5 12.3 15.2 13.4
Equity shareholders’ funds 75.8 69.9 71.3 66.7 68.0
Statistics
Earnings per ordinary share 44.4p 22.3p 26.6p 17.9p 30.7p
Earnings per share before goodwill amortisation 44.4p 22.3p 26.6p 29.0p 41.3p
Dividends per share – relating to the period 21.9p 21.6p 21.6p 21.0p 20.1p
Return on capital employed* 40% 37% 35% 40% 49%
* Return on capital employed is based on profit before interest, goodwill amortisation and tax and net tangible assets adding back net debt. 
For 2005, 2006 and 2007, the figures reported relate to the ongoing activities. Notice of Annual General Meeting
78 ACAL plc annual report and accounts for the year ended 31 March 2007
Notice is hereby given that the Twenty First Annual General Meeting of Acal plc will be held at the Company’s offices, 
2 Chancellor Court, Occam Road, Surrey Research Park, Guildford, GU2 7AH on 19th July 2007 at 11.00 am for the
following purposes:
Resolutions (being ordinary resolutions unless otherwise stated):
1 To receive and adopt the report of the Directors and the financial statements for the year ended 31 March 2007.
2 To approve the final dividend.
3 To approve the Directors Remuneration Report as set out on pages 24 to 27 of the Annual Report and Accounts.
4 To re-elect Mr R J Moon as a director of the Company.
5 To re-elect Mr J S Virdee as a director of the Company.
6 To consider and if thought fit pass the following resolution: 
“That Ernst & Young LLP be and is hereby appointed auditor of the Company to hold office from the conclusion of
this meeting until the conclusion of the next general meeting at which accounts are laid before the Company at a
remuneration to be agreed by the Directors.”
7 To consider and if thought fit pass the following resolution which will be proposed as a special resolution:
“That subject to the provisos hereto the Company be and is hereby generally authorised to purchase any of its own
ordinary shares of 5p each by a market purchase or purchases (as defined by Section 163 of the Companies Act
1985) provided always that this power shall:
i be limited to a purchase or purchases up to an aggregate of 2,600,000 issued ordinary shares of 5p each of 
the Company;
ii be limited to a purchase or purchases at a price per ordinary share (exclusive of dealing and other incidental
costs and stamp duty) not below 5p and not above an amount equal to the higher of: (a) 105 per cent of the
average of the middle market quotations for an ordinary share as derived from the London Stock Exchange Daily
Official List for the five business days immediately preceding the day on which the ordinary share is purchased;
and (b) that stipulated by Article 5(1) of the Buy-back and Stabilisation Regulations 2003; and
iii unless renewed, varied or revoked by the Company in general meeting expire on the earlier of the next Annual
General Meeting of the Company or 15 months from the passing of this resolution and the Company may
make a purchase of its own shares in accordance with this authority after the expiry of the said time limit
imposed above where the contract of purchase is concluded before such authority expires and the Company is
hereby permitted to make a contract of purchase which would or might be executed wholly or partly after the
authority shall have expired.”
8 To consider and if thought fit pass the following resolution: 
“That the Directors be generally and unconditionally authorised for the purposes of Section 80 of the Companies
Act 1985 to allot relevant securities (as defined in the said section) up to an aggregate nominal amount of
£440,000 such authority to expire on 19th July 2012 save that the Company may at any time before such expiry
make an offer or agreement which would or might require relevant securities to be allotted after such expiry and
the Directors may allot relevant securities in pursuance of such an offer or agreement as if the power conferred
hereby had not expired and provided further that the authority conferred by this resolution shall be in substitution
for any prior authorities conferred on the Directors to allot relevant securities save to the extent that any offer or
agreement which would or might require relevant securities to be allotted pursuant thereto shall have been made.”
9 To consider and if thought fit pass the following resolution which will be proposed as a special resolution:
“That subject to the passing of resolution 8 to be proposed at the Annual General Meeting of the Company to be held
on 19 July 2007 the Directors be empowered pursuant to Section 95 of the Companies Act 1985 to allot equity
securities (as defined in Section 94(2) of the Companies Act 1985) pursuant to the authority conferred by resolution 8
above as if Section 89(1) of the Companies Act 1985 did not apply to any such allotment provided that this power
shall be limited to:
a the allotment of equity securities in connection with a rights issue in favour of holders of ordinary shares and other
persons entitled to participate by way of rights where the equity securities attributable to the interests of all holders
of ordinary shares and such other persons’ holdings (or as appropriate to the number of such shares which such
other persons are for these purposes deemed to hold) are proportionate (as nearly as may be) to the respective
numbers of ordinary shares held by them but subject to such exclusions or other arrangements as the Directors may
deem necessary or expedient for the purpose of dealing with fractional entitlements or legal or practical problems
under the laws of, or the requirements of, any regulatory body or any stock exchange, in any territory; and Notice of Annual General Meeting continued
79 ACAL plc annual report and accounts for the year ended 31 March 2007
b the allotment (otherwise than pursuant to paragraph (a) of this resolution) of equity securities up to an aggregate
nominal amount of £66,000;
and shall expire at the conclusion of the Annual General Meeting of the Company next following the meeting at
which this resolution is passed save that the Company may before such expiry make an offer or agreement which
would or might require equity securities to be allotted for cash after such expiry and the Directors may allot
equity securities to such offer or agreement as if the power conferred hereby had not expired and shall be in
substitution for any prior authorities conferred upon the Directors to allot equity securities save to the extent that
any offer or agreement which would or might require equity securities to be allotted for cash pursuant thereto
shall have been made.”
By order of the Board
N Rowe
Secretary
20 June 2007
Notes
Any member of the Company entitled to attend and vote at the above meeting is entitled to appoint one or more proxies to attend and,
on a poll, vote instead of him. A proxy need not be a member of the Company. A form of proxy is enclosed and this must be lodged at
the offices of Lloyds TSB Registrars not less than 48 hours before the time appointed for the meeting.
BUS
STATION
RAILWAY
STATION
CATHEDRAL
HOSPITAL
HOTEL
A3
A323
A31
THE SURREY
RESEARCH PARK
A25 Occam Road
Gill Avenue
A322
 to Portsmouth
to London  The AGM of ACAL Plc will be
held at the company’s offices, at:
2 Chancellor Court,
Occam Road,
Surrey Research Park,
Guildford GU2 7AH Principal locations
80 ACAL plc annual report and accounts for the year ended 31 March 2007
Country Company/division Locations
ELECTRONICS
United Kingdom Acal Technology Ltd Wokingham, Berkshire
Stortech Electronics Ltd Harlow, Essex
Acal TC Leicester
Belgium Acal NV/SA Brussels
France Acal SAS Paris
Germany Acal GmbH Flein/Heilbronn
Munich
Hamburg
Italy Acal Italia Srl Milan
Netherlands Acal Nederland BV Eindhoven
Sweden Acal AB Stockholm
Norway Acal AB Honefoss
Finland Acal AB Helsinki
Denmark Acal AB Copenhagen
Spain Acal Iberia SL Madrid
PARTS SERVICES
United Kingdom EAF (UK) Ltd Wokingham, Berkshire
ATM Parts Company Ltd Camberley, Surrey
Computer Parts International Ltd Nottingham
Germany EAF Computer Service Supplies GmbH Goch
IT SOLUTIONS
United Kingdom Acal IT Ltd Church Crookham, Hampshire
Vertec Scientific Ltd Aldermaston, Berkshire
Belgium Acal NV/Headway Technology Brussels
Acal Networking & Security NV SA Brussels
France Acal SAS/Headway Technology Paris
Germany Acal GmbH/Headway Technology Munich
Hanover
Netherlands Acal Nederland BV/Headway Technology Eindhoven
Scandinavia Acal AB Copenhagen
Further details of the Group’s locations can be found on the Acal plc website
www.acalplc.co.uk Spain
Italy
Finland
Norway
Denmark
Belgium
Netherlands
Germany
UK
Electronics Division
Parts Services Division
IT Solutions Division
Bangalore
Shanghai
Singapore
Associate company offices
Sweden
Taiwan
Hong Kong
Bangkok
Selangor
Johar Bahru
Penang
Shenzhen
Suzhou
France
Contents
Highlights 1
Chairman’s statement 2
Acal’s business 4
Chief Executive’s review 8
Finance Director’s review 12
Directors 16
Corporate information 17
Directors’ report 18
Board report on corporate governance 20
Directors’ remuneration report 24
Corporate social responsibility 28
Statement of directors’ responsibilities 29
Report of the auditors – Group 31
Consolidated income statement 33
Consolidated statement of recognised 
income and expense 34
Consolidated balance sheet 35
Consolidated cash flow statement 36
Notes to the group financial statements 37
Report of the auditors – Company 69
Company balance sheet 71
Notes to the company financial statements 72
Five year record 77
Notice of annual general meeting 78
Principal locations 80
Acal plc 
Acal is one of Europe’s leading value-added distributors in
the electronics and IT industry supplying a wide range of
complementary products, solutions and services. 
The Group has approximately 950 employees located in
offices throughout Western Europe who serve and support
sales to customers from concept to fulfilment.
The business provides opportunities for growth, a high
return on capital employed and a positive cash flow. The
strategy is to invest in further development organically or 
by acquisition where this complements our current activities.
This will enhance shareholder value and provide further
opportunities for our staff, our customers and our suppliers.
Worldwide locations Annual report and accounts
for the year ended 31 March 2007
Distribution of technology…
2 Chancellor Court
Occam Road
Surrey Research Park
Guildford
Surrey GU2 7AH
Telephone +44 (0)1483 544500
Facsimile +44 (0)1483 544550
Email info@acalplc.co.uk
www.acalplc.co.uk
Acal plc Annual report and accounts for the year ended 31 March 2007