##### Table of Contents



SECURITIES AND EXCHANGE COMMISSION
 Washington D.C. 20549
 FORM 20-F
 o
    
    REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
 OR
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2009
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 o
    
    SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 Date of event requiring this shell company report
 Commission file number: 0-22320
 Trinity Biotech plc
   Ireland   IDA Business Park, Bray, Co. Wicklow, Ireland
 Kevin Tansley
Chief Financial Officer
Tel: +353 1276 9800
Fax: +353 1276 9888
IDA Business Park, Bray, Co. Wicklow, Ireland  (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
  Title of each class
    
    Name of each exchange on which registeredNone
    
    None
  American Depositary Shares (each representing 4 A Ordinary Shares, par value US$0.0109)
 None
  82,952,037 Class A Ordinary Shares and 700,000 Class B Shares
   o þ
  o þ
  þ o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
  U.S. GAAPo
    
    International Financial Reporting
Standards as issued by the
International Accounting Standards
Boardþ
    
    Othero
  o o
  o þ




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##### 



TABLE OF CONTENTS
 PagePART IItem 1
    
    Identity of Directors, Senior Management and Advisors
    
    
    1Item 2
    
    Offer statistics and Expected timetable
    
    
    1Item 3
    
    Selected Consolidated Financial Data
    
    
    1Item 4
    
    Information on the Company
    
    
    7Item 5
    
    Operating and Financial Review and Prospects
    
    
    14Item 6
    
    Directors and Senior Management
    
    
    36Item 7
    
    Major Shareholders and Related Party Transactions
    
    
    42Item 8
    
    Financial Information
    
    
    44Item 9
    
    The Offer and Listing
    
    
    44Item 10
    
    Memorandum and Articles of Association
    
    
    46Item 11
    
    Qualitative and Quantitative Disclosures about Market Risk
    
    
    57Item 12
    
    Description of Securities other than Equity Securities
    
    
    59PART IIItem 13
    
    Defaults, Dividend Arrangements and Delinquencies
    
    
    59Item 14
    
    Material Modification to the Rights of Security Holders and Use of Proceeds
    
    
    59Item 15
    
    Control and Procedures
    
    
    59Item 16A
    
    Audit Committee Financial Expert
    
    
    60Item 16B
    
    Code of Ethics
    
    
    60Item 16C
    
    Principal Accounting Fees and Services
    
    
    60PART IIIItem 17
    
    Consolidated Financial Statements
    
    
    61Item 18
    
    Consolidated Financial Statements
    
    
    61Item 19
    
    Exhibits
    
    
    131Exhibit 4Exhibit 12.1Exhibit 12.2Exhibit 13.1Exhibit 13.2Exhibit 15.1Exhibit 15.2




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##### Table of Contents




 
 Item 1 Identity of Directors, Senior Management and Advisers
  
 Item 2 Offer Statistics and Expected Timetable
  
 Item 3 Selected Consolidated Financial Data
   1




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##### Table of Contents



CONSOLIDATED STATEMENT OF OPERATIONS DATA
 Year ended December, 312009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Total
    
    
    Total
    
    
    Total
    
    
    Total
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Revenues
    
    
    125,907
    
    
    
    140,139
    
    
    
    143,617
    
    
    
    118,674
    
    
    
    98,560Cost of sales
    
    
    (68,891
    )
    
    
    (77,645
    )
    
    
    (75,643
    )
    
    
    (62,090
    )
    
    
    (51,378
    )Cost of sales  restructuring expenses
    
    
    
    
    
    
    
    
    
    
    (953
    )
    
    
    
    
    
    
    Cost of sales  inventory write off / provision
    
    
    
    
    
    
    
    
    
    
    (11,772
    )
    
    
    (5,800
    )
    
    
    Total cost of sales
    
    
    (68,891
    )
    
    
    (77,645
    )
    
    
    (88,368
    )
    
    
    (67,890
    )
    
    
    (51,378
    )Gross profit
    
    
    57,016
    
    
    
    62,494
    
    
    
    55,249
    
    
    
    50,784
    
    
    
    47,182Other operating income
    
    
    437
    
    
    
    1,173
    
    
    
    413
    
    
    
    275
    
    
    
    161Research and development expenses
    
    
    (7,341
    )
    
    
    (7,544
    )
    
    
    (6,802
    )
    
    
    (6,696
    )
    
    
    (6,070
    )Research and development  restructuring
expenses
    
    
    
    
    
    
    
    
    
    
    (6,907
    )
    
    
    
    
    
    
    Total research and development expenses
    
    
    (7,341
    )
    
    
    (7,544
    )
    
    
    (13,709
    )
    
    
    (6,696
    )
    
    
    (6,070
    )Selling, general and administrative expenses
    
    
    (36,013
    )
    
    
    (47,816
    )
    
    
    (51,010
    )
    
    
    (42,422
    )
    
    
    (34,651
    )Selling, general and administrative 
impairment charges and restructuring expenses
    
    
    
    
    
    
    (87,882
    )
    
    
    (20,315
    )
    
    
    
    
    
    
    Total selling, general and administrative
expenses
    
    
    (36,013
    )
    
    
    (135,698
    )
    
    
    (71,325
    )
    
    
    (42,422
    )
    
    
    (34,651
    )Operating profit/(loss)
    
    
    14,099
    
    
    
    (79,575
    )
    
    
    (29,372
    )
    
    
    1,941
    
    
    
    6,622Financial income
    
    
    8
    
    
    
    65
    
    
    
    457
    
    
    
    1,164
    
    
    
    389Financial expenses
    
    
    (1,192
    )
    
    
    (2,160
    )
    
    
    (3,148
    )
    
    
    (2,653
    )
    
    
    (1,058
    )Net financing costs
    
    
    (1,184
    )
    
    
    (2,095
    )
    
    
    (2,691
    )
    
    
    (1,489
    )
    
    
    (669
    )Profit/(loss) before tax
    
    
    12,915
    
    
    
    (81,670
    )
    
    
    (32,063
    )
    
    
    452
    
    
    
    5,953Income tax (expense)/ credit
    
    
    (1,091
    )
    
    
    3,892
    
    
    
    (3,309
    )
    
    
    2,824
    
    
    
    (673
    )Profit/(loss) for the year (all attributable
to owners of the parent)
    
    
    11,824
    
    
    
    (77,778
    )
    
    
    (35,372
    )
    
    
    3,276
    
    
    
    5,280Basic earnings/(loss) per A ordinary share
(US Dollars)
    
    
    0.14
    
    
    
    (0.96
    )
    
    
    (0.47
    )
    
    
    0.05
    
    
    
    0.09Basic earnings/(loss) per B ordinary share
(US Dollars)
    
    
    0.28
    
    
    
    (1.91
    )
    
    
    (0.94
    )
    
    
    0.10
    
    
    
    0.18Diluted earnings/(loss) per A ordinary share
(US Dollars)
    
    
    0.14
    
    
    
    (0.96
    )
    
    
    (0.47
    )
    
    
    0.05
    
    
    
    0.09Diluted earnings/(loss) per B ordinary share
(US Dollars)
    
    
    0.28
    
    
    
    (1.91
    )
    
    
    (0.94
    )
    
    
    0.10
    
    
    
    0.18Basic earnings/(loss) per ADS (US Dollars)
    
    
    0.57
    
    
    
    (3.82
    )
    
    
    (1.86
    )
    
    
    0.19
    
    
    
    0.36Diluted earnings/(loss) per ADS (US Dollars)
    
    
    0.57
    
    
    
    (3.82
    )
    
    
    (1.86
    )
    
    
    0.19
    
    
    
    0.35Weighted average number of shares used in
computing basic EPS
    
    
    83,737,884
    
    
    
    81,394,075
    
    
    
    76,036,579
    
    
    
    70,693,753
    
    
    
    58,890,084Weighted average number of shares used in
computing diluted EPS
    
    
    83,772,094
    
    
    
    81,394,075
    
    
    
    76,036,579
    
    
    
    72,125,740
    
    
    
    67,032,382
  2




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Consolidated Balance Sheet Data
 December 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Net current assets (current
assets less current
liabilities)
    
    
    42,835
    
    
    
    39,494
    
    
    
    36,298
    
    
    
    60,996
    
    
    
    44,964Non-current liabilities
    
    
    (27,500
    )
    
    
    (27,897
    )
    
    
    (35,623
    )
    
    
    (45,928
    )
    
    
    (19,083
    )Total assets
    
    
    132,445
    
    
    
    129,509
    
    
    
    215,979
    
    
    
    249,131
    
    
    
    184,602Capital stock
    
    
    1,080
    
    
    
    1,070
    
    
    
    991
    
    
    
    978
    
    
    
    830Shareholders equity
    
    
    79,344
    
    
    
    65,905
    
    
    
    136,845
    
    
    
    167,262
    
    
    
    133,618
  Risk Factors
  Trinity Biotechs operating results may be subject to fluctuations.
 
    
    Trinity Biotechs operating results may fluctuate as a result of many factors related to
its business, including the competitive conditions in the industry, major reorganisations of
the Groups activities, loss of significant customers, delays in the development of new
products and currency fluctuations, as described in more detail below, and general factors
such as the size and timing of orders, the prevalence of various diseases and general economic
conditions. In the event of lower operating profits, this could have a negative impact on cash
generated from operations and also negatively impact shareholder value.
 A need for capital might arise in the future if Trinity Biotechs capital requirements increase or
revenues decrease.
 
    
    Up to now Trinity Biotech has funded its operations through the sale of its shares and
securities convertible into shares, cashflows from operations and bank borrowings. Trinity
Biotech expects that the proceeds of equity financings, bank borrowings, lease financing,
current working capital and sales revenues will fund its existing operations and payment
obligations. However, if our capital requirements are greater than expected, or if our
revenues do not generate sufficient cashflows to fund our operations, we may need to find
additional financing which may not be available on attractive terms or at all. Any future
financing could have an adverse effect on our current shareholders or the price of our shares
in general.
 Trinity Biotechs acquisition strategy may be less successful than expected, and therefore, growth
may be limited.
 
    
    Trinity Biotech has historically grown organically and through the acquisition of, and
investment in, other companies, product lines and technologies. There can be no guarantees
that recent or future acquisitions can be successfully assimilated or that projected growth in
revenues or synergies in operating costs can be achieved. Our ability to integrate future
acquisitions may also be adversely affected by inexperience in dealing with new technologies,
and changes in regulatory or competitive environments. Additionally, even during a successful
integration, the investment of managements time and resources in the new enterprise may be
detrimental to the consolidation and growth of our existing business.
  3




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The diagnostics industry is highly competitive, and Trinity Biotechs research and development
could be rendered obsolete by technological advances of competitors.
 
    
    Trinity Biotechs principal business is the supply of medical diagnostic test kits and
related diagnostic instrumentation. The diagnostics industry is extremely competitive.
Trinity Biotech is competing directly with companies which have greater capital resources and
larger marketing and business organisations than Trinity Biotech. Trinity Biotechs ability to
grow revenue and earnings may be adversely impacted by competitive product and pricing
pressures and by its inability to gain or retain market share as a result of the action of
competitors.
 ® ® ®
 Trinity Biotech is highly dependent on suitable distributors worldwide.
 
    
    Trinity Biotech currently distributes its product portfolio through distributors in
approximately 75 countries worldwide. Our continuing economic success and financial security
is dependent on our ability to secure effective channels of distribution on favourable trading
terms with suitable distributors.
 Trinity Biotechs business could be adversely affected by changing market conditions resulting in
the reduction of the number of institutional customers.
 
    
    The diagnostics industry is in transition with a number of changes that affect the market
for diagnostic test products. Changes in the healthcare industry delivery system have resulted
in major consolidation among reference laboratories and in the formation of multi-hospital
alliances, reducing the number of institutional customers for diagnostic test products. There
can be no assurance that we will be able to enter into and/or sustain contractual or other
marketing or distribution arrangements on a satisfactory commercial basis with these
institutional customers.
 Trinity Biotechs long-term success depends on its ability to develop new products subject to
stringent regulatory control. Even if new products are successfully developed, Trinity Biotechs
proprietary know-how, manufacturing techniques and trade secrets may be copied by competitors.
Furthermore, Trinity Biotechs patents have a limited life time and are thereafter subject to
competition with generic products. Also, competitors might claim an exclusive patent for products
Trinity Biotech plans to develop.
 
    
    We are committed to significant expenditure on research and development (R&D). However,
there is no certainty that this investment in research and development will yield technically
feasible or commercially viable products. Our organic growth and long-term success is
dependent on our ability to develop and market new products but this work is subject to very
stringent regulatory control and very significant costs in research, development and
marketing. Failure to introduce new products could significantly slow our growth and
adversely affect our market share.
 
    
    Even when products are successfully developed and marketed, Trinity Biotechs ownership of
the technology behind these products has a finite life. In general, generic competition,
which can arise through replication of the Trinity Biotechs proprietary know-how,
manufacturing techniques and trade secrets or after the expiration of a patent, can have a
detrimental effect on a products revenue, profitability and market share. There can be no
guarantee that the net income and financial position of Trinity Biotech will not be adversely
affected by competition from generic products. Conversely, on occasion, certain companies have
claimed exclusive patent, copyright and other intellectual property rights to technologies in
the diagnostics industry. If these technologies relate to Trinity Biotechs planned products,
Trinity Biotech would be obliged to seek licences to use this technology and, in the event of
being unable to obtain such licences or it being obtainable on grounds that would
be materially disadvantageous to Trinity Biotech, we would be precluded from marketing such
products, which could adversely impact our revenues, sales and financial position.
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Trinity Biotechs patent applications could be rejected or the existing patents could be
challenged; our technologies could be subject to patent infringement claims; and trade secrets and
confidential know-how could be obtained by competitors.
 
    
    We can provide no assurance that the patents Trinity Biotech may apply for will be
obtained or that existing patents will not be challenged. The patents owned by Trinity
Biotech and its subsidiaries may be challenged by third parties through litigation and
could adversely affect the value of our patents. We can provide no assurance that our
patents will continue to be commercially valuable.
    
    Trinity Biotech currently owns 15 US patents with remaining patent lives varying from
less than one year to 13 years. In addition to these US patents, Trinity Biotech owns a
total of 7 additional non-US patents with expiration dates varying between the years 2010
and 2023.
    
    Also, our technologies could be subject to claims of infringement of patents or
proprietary technology owned by others. The cost of enforcing our patent and technology
rights against infringers or defending our patents and technologies against infringement
charges by others may be high and could adversely affect our business.
    
    Trade secrets and confidential know-how are important to our scientific and commercial
success. Although we seek to protect our proprietary information through confidentiality
agreements and other contracts, we can provide no assurance that others will not
independently develop the same or similar information or gain access to our proprietary
information.
 Trinity Biotechs business is heavily regulated and non-compliance with applicable regulations
could reduce revenues and profitability.
 
    
    Our manufacturing and marketing of diagnostic test kits are subject to government
regulation in the United States of America by the Food and Drug Administration (FDA),
and by comparable regulatory authorities in other jurisdictions. The approval process for
our products, while variable across countries, is generally lengthy, time consuming,
detailed and expensive. Our continued success is dependent on our ability to develop and
market new products, some of which are currently awaiting approval from these regulatory
authorities. There is no certainty that such approval will be granted or, even once
granted, will not be revoked during the continuing review and monitoring process.
    
    We are required to comply with extensive post market regulatory requirements.
Non-compliance with applicable regulatory requirements of the FDA or comparable foreign
regulatory bodies can result in enforcement action which may include recalling products,
ceasing product marketing, paying significant fines and penalties, and similar actions
that could limit product sales, delay product shipment, and adversely affect
profitability.
 Trinity Biotechs success is dependent on certain key management personnel.
 
    
    Trinity Biotechs success is dependent on certain key management personnel. Our key
employees at December 31, 2009 were Ronan OCaoimh, our CEO and Chairman, Rory Nealon, our
COO and Kevin Tansley, our CFO and Company Secretary. Competition for qualified employees
among biotechnology companies is intense, and the loss of such personnel or the inability
to attract and retain the additional highly skilled employees required for the expansion of
our activities, could adversely affect our business. In the USA, the UK, France and Germany
we have been able to attract and retain qualified personnel. In Ireland, we have
experienced some difficulties in attracting and retaining staff due to competition from
other employers in our industry.
  5




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Trinity Biotech is dependent on its suppliers for the primary raw materials required for its test
kits.
 
    
    The primary raw materials required for Trinity Biotechs test kits consist of antibodies,
antigens or other reagents, glass fibre and packaging materials which are acquired from third
parties. Although Trinity Biotech does not expect to be dependent upon any one source for
these raw materials, alternative sources of antibodies with the characteristics and quality
desired by Trinity Biotech may not be available. Such unavailability could affect the quality
of our products and our ability to meet orders for specific products.
 Trinity Biotech may be subject to liability resulting from its products or services.
 
    
    Trinity Biotech may be subject to claims for personal injuries or other damages
resulting from its products or services. Trinity Biotech has global product liability
insurance in place for its manufacturing subsidiaries up to a maximum of 6,500,000
(US$9,382,000) for any one accident, limited to a maximum of 6,500,000 (US$9,382,000) in
any one year period of insurance. A deductible of US$25,000 is applicable to each insurance
event that may arise. There can be no assurance that our product liability insurance is
sufficient to protect us against liability that could have a material adverse effect on our
business.
 Currency fluctuations may adversely affect our earnings and assets.
 
    
    Trinity Biotech records its transactions primarily in US Dollars and Euro and prepares its
financial statements in US Dollars. A substantial portion of our expenses are denominated in
Euro. However, Trinity Biotechs revenues are primarily denominated in US Dollars. As a
result, the Group is affected by fluctuations in currency exchange rates, especially the
exchange rate between the US dollar and the Euro, which may adversely affect our earnings and
assets. The percentage of 2009 consolidated revenue denominated in US Dollars was
approximately 72%. Of the remaining 28%, 22% relates to revenue denominated in Euro and 6%
relates to sterling and yen denominated revenues. Thus, a 10% decrease in the value of the
Euro would have approximately a 2% adverse impact on consolidated revenues.
 
    
    As part of the process of mitigating foreign exchange risk, the principal exchange risk
identified by Trinity Biotech is with respect to fluctuations in the Euro. This is
attributable to the level of Euro denominated expenses exceeding the level of Euro denominated
revenues thus creating a Euro deficit. Trinity Biotech continuously monitors its exposure to
foreign currency movements and based on expectations on future exchange rate exposure
implements a hedging policy which may include covering a portion of this exposure through the
use of forward contracts. In the medium term, our objective is to increase the level of
non-US Dollar denominated revenue, thus creating a natural hedge of the non-US Dollar
expenditure.
 The conversion of our outstanding employee share options and warrants would dilute the ownership
interest of existing shareholders.
 
    
    The warrants issued in 2004 and 2008 and the total share options exercisable at December
2009, as described in Item 18, note 19 to the consolidated financial statements, are
convertible into American Depository Shares (ADSs), 1 ADS representing 4 Class A Ordinary
Shares. The exercise of the share options exercisable and of the warrants will likely occur
only when the conversion price is below the trading price of our ADSs and will dilute the
ownership interests of existing shareholders. For instance, should the options and warrant
holders of the 6,915,952 A Ordinary shares (1,728,988 ADSs) exercisable at December 31, 2009
be exercised, Trinity Biotech would have to issue 6,915,952 additional A ordinary shares
(1,728,988 ADSs). On the basis of 82,952,037 A ordinary shares outstanding at December 31,
2009, this would effectively dilute the ownership interest of the existing shareholders by
approximately 8%.
  6




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It could be difficult for US holders of ADSs to enforce any securities laws claims against Trinity
Biotech, its officers or directors in Irish Courts.
 
    
    At present, no treaty exists between the United States and Ireland for the reciprocal
enforcement of foreign judgements. The laws of Ireland do however, as a general rule,
provide that the judgements of the courts of the United States have in Ireland the same
validity as if rendered by Irish Courts. Certain important requirements must be satisfied
before the Irish Courts will recognize the United States judgement. The originating court
must have been a court of competent jurisdiction, the judgement may not be recognized if it
is based on public policy, was obtained by fraud or its recognition would be contrary to
Irish public policy. Any judgement obtained in contravention of the rules of natural
justice will not be enforced in Ireland.
 
 Item 4
 Information on the Company
 History and Development of the Company
      Acquisition of the immuno-technology business of Cortex Biochem Inc
  Acquisition of certain components of the distribution business of Sterilab Services UK
   7




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Principal Markets
   Principal Products
  Clinical Laboratory
    
    Point of CareInfectious
    
    ClinicalCoagulation
    
    Diseases
    
    ChemistryTriniTM
    
    Bartels®
    
    Primus
    
    UniGoldBiopool®
    
    CAPTIA
    
    EZ
    
    CapillusAmax
    
    MarDx®
    
    
    
    Recombigen®Destiny
    
    MicroTrakMarBlot®
  Clinical Laboratory
  Coagulation
   Infectious Diseases
    8




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1.
    
    The increased Trinity Biotech instrumentation offering/portfolio through collaboration
with Dynex and implementation of a system sell (i.e. combining instruments and reagents)
strategy;2.
    
    Focus on key accounts in affiliate markets;3.
    
    Expansion of product portfolio to meet market demands; and4.
    
    Increase in our geographical spread with new partnerships in major markets in
Asia-Pacific.
 Clinical Chemistry
   Point of Care (POC)
     Sales and Marketing
   9




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Manufacturing and Raw Materials
  Competition
  Patents and Licences
 Patents
   Licences
       10




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Government Regulation
   FDA Regulation
  Access to US Market.
 5 10(k) Clearance Pathway
 PMA Approval Pathway
  BLA approval pathway.
 Clinical Studies
  11




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Post-market Regulation
     CLIA classification
    Regulation outside the United States
   12




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Organisational Structure
   Property, Plant and Equipment
  
    
     
  13




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##### Table of Contents



Bray, Ireland
 Lemgo, Germany
 Jamestown, New York
 Carlsbad, California
 Kansas City, Missouri
  Capital expenditures and divestitures
  
 Item 5
 Operating and Financial Review and Prospects
 Operating Results
   14




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Overview
  Factors affecting our results
     Critical Accounting Policies and Estimates
    Research and development expenditure
    15




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Impairment of intangible assets and goodwill
  
    
    Significant underperformance relative to expected, historical or projected future operating results;
    
    Significant changes in the manner of our use of the acquired assets or the strategy for our overall
business;
    
    Obsolescence of products;
    
    Significant decline in our stock price for a sustained period; and
    
    Our market capitalisation relative to net book value.
    
    
    A net reversal of impairment loss of US$2.5 million in the event of a 10% increase in
the growth in revenues.
    
    An impairment loss of US$2.1 million in the event of a 10% decrease in the growth in
revenues.
  
    
    A reversal of impairment loss of US$8.0 million in the event of a 10% decrease in the
discount rate.
    
    An impairment loss of US$7.7 million in the event of a 10% increase in the discount
rate.
 Allowance for slow-moving and obsolete inventory
   16




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Allowance for impairment of receivables
  Accounting for income taxes
     17




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Impact of Recently Issued Accounting Pronouncements
 ,
  18




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##### Table of Contents



Results of Operations
 Year ended December 31, 2009 compared to the year ended December 31, 2008
 The following compares our results in the year ended December 31, 2009 to those of the year ended
December 31, 2008 under IFRS. Our analysis is divided as follows:
 1.
    
    Overview2.
    
    Revenues3.
    
    Operating Profit/(loss)4.
    
    Profit/(loss) for the year
 1. Overview
     Year ended December 31,2009
    
    
    2008US$000
    
    
    US$000
    
    
    % ChangeOperating Profit/(loss)
    
    
    14,099
    
    
    
    (79,575
    )Operating Profit (2008 figure
shown before impairment and
restructuring charges)
    
    
    14,099
    
    
    
    8,307
    
    
    
    70
    %Profit/(loss) after Tax
    
    
    11,824
    
    
    
    (77,778
    )Profit after Tax (2008 figure
shown before impairment and
restructuring charges)
    
    
    11,824
    
    
    
    5,353
    
    
    
    121
    %
   19




---



##### Table of Contents



2. Revenues
    Revenues by Product Line
  Year ended December 31,2009
    
    
    2008US$000
    
    
    US$000
    
    
    % ChangeRevenuesClinical Laboratory
    
    
    107,778
    
    
    
    121,143
    
    
    
    (11
    %)Point of Care
    
    
    18,129
    
    
    
    18,996
    
    
    
    (5
    %)Total
    
    
    125,907
    
    
    
    140,139
    
    
    
    (10
    %)
 Clinical Laboratory
    20




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##### Table of Contents



Point of Care
   Revenues by Geographical Region
  Year ended December 31,2009
    
    
    2008US$000
    
    
    US$000
    
    
    % ChangeRevenuesAmericas
    
    
    68,130
    
    
    
    69,915
    
    
    
    (3
    %)Europe
    
    
    32,389
    
    
    
    43,481
    
    
    
    (26
    %)Asia/Africa
    
    
    25,388
    
    
    
    26,743
    
    
    
    (5
    %)Total
    
    
    125,907
    
    
    
    140,139
    
    
    
    (10
    %)
      21




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##### Table of Contents



3. Operating Profit/(loss)
  Year ended December 31,2009
    
    
    2008US$000
    
    
    US$000
    
    
    % ChangeRevenues
    
    
    125,907
    
    
    
    140,139
    
    
    
    (10
    %)Cost of sales
    
    
    (68,891
    )
    
    
    (77,645
    )
    
    
    (11
    %)Gross profit
    
    
    57,016
    
    
    
    62,494
    
    
    
    (9
    %)Other operating income
    
    
    437
    
    
    
    1,173
    
    
    
    (63
    %)Research & development
    
    
    (7,341
    )
    
    
    (7,544
    )
    
    
    (3
    %)SG&A expenses
    
    
    (36,013
    )
    
    
    (47,816
    )
    
    
    (25
    %)SG&A expenses  impairment
charges and restructuring
expenses
    
    
    
    
    
    
    (87,882
    )
    
    
    (100
    %)Operating profit/(loss)
    
    
    14,099
    
    
    
    (79,575
    )
 Cost of sales
    Gross margin
  Other operating income
  Research and development expenses
  Selling, General & Administrative expenses (SG&A)
   22




---



##### Table of Contents



Year ended December 31,2009
    
    
    2008
    
    
    (Decrease)US$000
    
    
    US$000
    
    
    US$000
    
    
    % ChangeSG&A (excl.
share-based payments
and amortisation)
    
    
    33,567
    
    
    
    43,314
    
    
    
    (9,747
    )
    
    
    (23
    %)SG&A   impairment
charges and
restructuring
expenses
    
    
    
    
    
    
    87,882
    
    
    
    (87,882
    )
    
    
    (100
    %)Share-based payments
    
    
    487
    
    
    
    886
    
    
    
    (399
    )
    
    
    (45
    %)Amortisation
    
    
    1,959
    
    
    
    3,616
    
    
    
    (1,657
    )
    
    
    (46
    %)Total
    
    
    36,013
    
    
    
    135,698
    
    
    
    (99,685
    )
    
    
    (73
    %)
 Selling General & Administrative Expenditure (excluding share-based payments and amortisation)
   
    
    a cost reduction program involving a headcount reduction was announced in December 2008,
which delivered payroll cost savings in SG&A of approximately US$5,100,000 in 2009. The
headcount reduction also had the effect of reducing travel and other employee expenses by
almost US$1,000,000.
    
    other headcount reductions implemented in 2009 contributed to a further reduction in SG&A
payroll costs of US$700,000. These headcount reductions mainly involved the rationalisation
of the French sales and US finance functions.
    
    a salary reduction for directors and senior managers was implemented in early 2009 and
resulted in a cost saving of approximately US$700,000.
    
    a significant proportion of the Groups SG&A expenses are denominated in Euro. During 2009
the average US dollar versus Euro exchange rate was 6% lower compared to 2008 and this had
the effect of reducing SG&A expenses by about US$1,100,000. The US dollar also strengthened
versus Sterling in 2009 and this had the effect of reducing the reported SG&A costs for our
UK selling entity by just over US$350,000.
    
    through strict cost control the Group succeeded in reducing its selling overheads and
administrative expenses by about US$750,000 in 2009. A wide range of overhead savings were
achieved, including communications, utilities, travel costs, legal and professional fees and
recruitment fees.
 SG&A impairment charges and restructuring expenses
   Share-based payments
    23




---



##### Table of Contents



Amortisation
  4. Profit/(loss) for the year
  Year ended December 31,2009
    
    
    2008US$000
    
    
    US$000
    
    

% ChangeOperating profit/(loss)
    
    
    14,099
    
    
    
    (79,575
    )
    
    
    118
    %Net financing costs
    
    
    (1,184
    )
    
    
    (2,095
    )
    
    
    (43
    %)Profit/(Loss) before tax
    
    
    12,915
    
    
    
    (81,670
    )
    
    
    116
    %Income tax (expense)/credit
    
    
    (1,091
    )
    
    
    3,892
    
    
    
    128
    %Profit/(Loss) of the year
    
    
    11,824
    
    
    
    (77,778
    )
    
    
    115
    %
 Net Financing Costs
  Taxation
  Profit/(loss) for the year
   24




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##### Table of Contents



Results of Operations
 Year ended December 31, 2008 compared to the year ended December 31, 2007
 The following compares our results in the year ended December 31, 2008 to those of the year ended
December 31, 2007 under IFRS. Our analysis is divided as follows:
 1.
    
    Overview2.
    
    Revenues3.
    
    Operating Loss4.
    
    Loss for the year
 1. Overview
     Year ended December 31, 2008Impairment
    
    
    Restructuring
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000Selling, general & administration expensesImpairment of property, plant and equipment
(Item 18, note 11)
    
    
    13,095
    
    
    
    
    
    
    
    13,095Impairment of goodwill and other intangible
assets (Item 18, note 12)
    
    
    71,684
    
    
    
    
    
    
    
    71,684Impairment of prepayments (Item 18, note 16)
    
    
    1,014
    
    
    
    
    
    
    
    1,014Employee termination payments
    
    
    
    
    
    
    589
    
    
    
    589Directors compensation for loss of office
and share option expense
    
    
    
    
    
    
    1,465
    
    
    
    1,465Other restructuring expenses
    
    
    
    
    
    
    35
    
    
    
    35Total impairment loss and restructuring expenses
before tax
    
    
    85,793
    
    
    
    2,089
    
    
    
    87,882Income tax impact of impairment loss and
restructuring expenses (Item 18, note 9)
    
    
    (4,536
    )
    
    
    (215
    )
    
    
    (4,751
    )Total impairment loss and restructuring expenses
after tax
    
    
    81,257
    
    
    
    1,874
    
    
    
    83,131
   25




---



##### Table of Contents



2. Revenues
     26




---



##### Table of Contents



Revenues by Product Line
  Year ended December 31,2008
    
    
    2007US$000
    
    
    US$000
    
    

% ChangeRevenuesClinical Laboratory
    
    
    121,143
    
    
    
    119,113
    
    
    
    2
    %Point of Care
    
    
    18,996
    
    
    
    24,504
    
    
    
    (23
    %)Total
    
    
    140,139
    
    
    
    143,617
    
    
    
    (2
    %)
 Clinical Laboratory
     Point of Care
   27




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##### Table of Contents



Revenues by Geographical Region
  Year ended December 31,2008
    
    
    2007US$000
    
    
    US$000
    
    

% ChangeRevenuesAmericas
    
    
    69,915
    
    
    
    68,481
    
    
    
    2
    %Europe
    
    
    43,481
    
    
    
    43,631
    
    
    
    0
    %Asia/Africa
    
    
    26,743
    
    
    
    31,505
    
    
    
    (15
    %)Total
    
    
    140,139
    
    
    
    143,617
    
    
    
    (2
    %)
     3. Operating Loss
  Year ended December 31,2008
    
    
    2007US$000
    
    
    US$000
    
    

% ChangeRevenues
    
    
    140,139
    
    
    
    143,617
    
    
    
    (2
    %)Cost of sales
    
    
    (77,645
    )
    
    
    (75,643
    )
    
    
    3
    %Cost of sales  restructuring expenses
    
    
    
    
    
    
    (953
    )
    
    
    (100
    %)Cost of sales  inventory write off/ provision
    
    
    
    
    
    
    (11,772
    )
    
    
    (100
    %)Gross profit
    
    
    62,494
    
    
    
    55,249
    
    
    
    13
    %Other operating income
    
    
    1,173
    
    
    
    413
    
    
    
    184
    %Research & development
    
    
    (7,544
    )
    
    
    (6,802
    )
    
    
    11
    %Research & development  restructuring expenses
    
    
    
    
    
    
    (6,907
    )
    
    
    (100
    %)SG&A expenses
    
    
    (47,816
    )
    
    
    (51,010
    )
    
    
    (6
    %)SG&A expenses  impairment charges and
restructuring expenses
    
    
    (87,882
    )
    
    
    (20,315
    )
    
    
    333
    %Operating (loss)
    
    
    (79,575
    )
    
    
    (29,372
    )
    
    
    171
    %
  28




---



##### Table of Contents



Cost of sales
    Gross margin
  Research and development expenses
   Selling, General & Administrative expenses (SG&A)
   29




---



##### Table of Contents



Year ended December 31,
    
    
    Increase/2008
    
    
    2007
    
    
    (decrease)US$000
    
    
    US$000
    
    
    US$000
    
    
    % ChangeSG&A (excl.
share-based payments
and amortisation)
    
    
    43,314
    
    
    
    46,368
    
    
    
    (3,054
    )
    
    
    (7
    %)SG&A   impairment
charges and
restructuring
expenses
    
    
    87,882
    
    
    
    20,315
    
    
    
    67,567
    
    
    
    333
    %Share-based payments
    
    
    886
    
    
    
    1,224
    
    
    
    (338
    )
    
    
    (28
    %)Amortisation
    
    
    3,616
    
    
    
    3,418
    
    
    
    198
    
    
    
    6
    %Total
    
    
    135,698
    
    
    
    71,325
    
    
    
    64,373
    
    
    
    90
    %
 Selling General & Administrative Expenditure (excluding share-based payments and amortisation)
   
    
    a reorganisation of our sales force mainly in the US was announced in December 2007. As a
result, a headcount reduction was implemented which delivered payroll cost savings of about
US$1,000,000 in 2008. Other headcount reductions in management and administrative functions
reduced SG&A payroll costs by a further US$900,000.
    
    through cost control the Group succeeded in reducing its selling overheads and
administrative expenses by about US$2,000,000 in 2008. Further cost cutting measures were
announced by the Board in December 2008 but due to timing these measures did not have a
significant impact on the 2008 figures. The full benefit of these cost cutting measures,
which mainly comprise further headcount reductions in sales, marketing and administration,
will be seen in 2009.
    
    a reduction in professional fees including audit fees of approximately US$700,000.
    
    the closure of the plant in Umea, Sweden during 2008 reduced administrative expenses by
about US$180,000.
    
    the US dollar strengthened versus Sterling in the second half of 2008 and this had the
effect of reducing the reported SG&A costs for our UK selling entity by just over US$100,000.
 SG&A impairment charges and restructuring expenses
    30




---



##### Table of Contents



Share-based payments
    Amortisation
  4. Loss for the year
  Year ended December 31,2008
    
    
    2007US$000
    
    
    US$000
    
    

% ChangeOperating (loss)
    
    
    (79,575
    )
    
    
    (29,372
    )
    
    
    171
    %Net financing costs
    
    
    (2,095
    )
    
    
    (2,691
    )
    
    
    (22
    %)(Loss) before tax
    
    
    (81,670
    )
    
    
    (32,063
    )
    
    
    155
    %Income tax credit/(expense)
    
    
    3,892
    
    
    
    (3,309
    )
    
    
    (218
    %)(Loss) of the year
    
    
    (77,778
    )
    
    
    (35,372
    )
    
    
    120
    %
 Net Financing Costs
   31




---



##### Table of Contents



Taxation
  Loss for the year
  Liquidity and Capital Resources
 Financing
     Working capital
   
    
    The ability of the Group to continue to generate revenue growth from its existing
product lines;
    
    The ability of the Group to generate revenues from new products following the successful
completion of its development projects;
    
    The extent to which capital expenditure is incurred on additional property plant and
equipment;
    
    The level of investment required to undertake both new and existing development
projects;
    
    Successful working capital management in the context of a growing group.
    32




---



##### Table of Contents



Cash management
     
    
    A decrease in accounts receivable by US$3,872,000 due to a decrease in debtors days in
the year;
    
    A decrease in trade and other payables by US$10,409,000 due mainly to the significant
reduction in overdue creditor amounts during the year; and
    
    A decrease in inventory by US$2,372,000 due to the continued Group wide emphasis on
inventory management.
   
    
    Payments to acquire intangible assets of US$8,103,000 (2008: US$8,981,000), which
principally related to development expenditure capitalised as part of the Groups on-going
product development activities;
    
    Acquisition of property, plant and equipment of US$2,481,000 (2008: US$3,713,000)
incurred as part of the Groups investment programme for its manufacturing and distribution
activities;
    
    Proceeds from the disposal of property, plant and equipment of US$249,000 (2008:
US$808,000).
    33




---



##### Table of Contents



Contractual obligations
  Contractual Obligations
    
    Payments due by Periodless than 1
    
    
    
    
    
    
    
    
    
    
    more thanTotal
    
    
    year
    
    
    1-3 Years
    
    
    3-5 Years
    
    
    5 yearsUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Bank loans
    
    
    30,556
    
    
    
    12,364
    
    
    
    18,090
    
    
    
    102
    
    
    
    Capital
(finance) lease obligations
    
    
    2,478
    
    
    
    909
    
    
    
    1,361
    
    
    
    208
    
    
    
    Operating lease obligations
    
    
    53,820
    
    
    
    4,289
    
    
    
    7,229
    
    
    
    6,799
    
    
    
    35,503Total
    
    
    86,854
    
    
    
    17,562
    
    
    
    26,680
    
    
    
    7,109
    
    
    
    35,503
  Impact of Currency Fluctuation
   Off-Balance Sheet Arrangements
  Leases with Related Parties
  Research & Development (R&D) carried out by third parties
   34




---



##### Table of Contents



Research and Products under Development
 History
  Centres of Excellence
   Western Blot Development Group
  US Lyme Western Blot
  Automated Blotting Instrument and Blot Scanner
  Clinical Chemistry
 TRIstat POC
  Medium throughput HPLC for Haemoglobin testing
  Coagulation Development Group
 Destiny Max Development Project
   35




---



##### Table of Contents



Trend Information
  
 Item 6
 Directors and Senior Management
 Directors
 Name
    
    Age
    
    TitleRonan OCaoimh
    
    54
    
    Chief Executive OfficerRory Nealon
    
    42
    
    Director, Chief Operations OfficerJim Walsh, PhD
    
    51
    
    Non Executive DirectorDenis R. Burger, PhD
    
    66
    
    Non Executive DirectorPeter Coyne
    
    50
    
    Non Executive DirectorClint Severson
    
    61
    
    Non Executive DirectorJames D. Merselis
    
    56
    
    Non Executive DirectorExecutive OfficerKevin Tansley
    
    39
    
    Chief Financial Officer & Company Secretary
 Board of Directors & Executive Officers
 Ronan OCaoimh, Chairman and Chief Executive Officer,
 Rory Nealon, Chief Operations Officer
  36




---



##### Table of Contents



Jim Walsh, PhD, Non-executive director
 Denis R. Burger, PhD, Non-executive director
 Peter Coyne, Non-executive director
 Clint Severson, Non-executive director
 James D. Merselis, Non-executive director
 Kevin Tansley, Chief Financial Officer
  37




---



##### Table of Contents



Compensation of Directors and Officers
   DefinedSalary/
    
    
    Performance
    
    
    contribution
    
    
    Total
    
    
    TotalBenefits
    
    
    related bonus
    
    
    pension
    
    
    2009
    
    
    2008Director
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Ronan OCaoimh
    
    
    579
    
    
    
    
    
    
    
    65
    
    
    
    644
    
    
    
    593Rory Nealon
    
    
    379
    
    
    
    
    
    
    
    40
    
    
    
    419
    
    
    
    507Brendan Farrell
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,841958
    
    
    
    
    
    
    
    105
    
    
    
    1,063
    
    
    
    2,941
 Total
    
    
    TotalFees
    
    
    2009
    
    
    2008Non-executive director
    
    US$000
    
    
    US$000
    
    
    US$000Denis R. Burger
    
    
    70
    
    
    
    70
    
    
    
    68Peter Coyne
    
    
    70
    
    
    
    70
    
    
    
    68James Merselis
    
    
    53
    
    
    
    53
    
    
    
    Clint Severson
    
    
    60
    
    
    
    60
    
    
    
    5Jim Walsh
    
    
    60
    
    
    
    60
    
    
    
    103
    *313
    
    
    
    313
    
    
    
    244
 *
    
    comprised of US$59,000 relating to fees and US$44,000 relating to other amounts. DefinedChief Financial
    
    Salary/
    
    
    Performance
    
    
    contribution
    
    
    Total
    
    
    TotalOfficer & Company
    
    Benefits
    
    
    related bonus
    
    
    pension
    
    
    2009
    
    
    2008Secretary
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Kevin Tansley
    
    
    286
    
    
    
    
    
    
    
    31
    
    
    
    317
    
    
    
    408286
    
    
    
    
    
    
    
    31
    
    
    
    317
    
    
    
    408
    38




---



##### Table of Contents



2009 Share Options Granted:
 Number of Options
    
    Exercise Price of
    
    
    Date of OptionDirector/Executive Officer
    
    Granted
    
    Options Granted
    
    
    Grant*Ronan OCaoimh
    
    800,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009Rory Nealon
    
    500,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009Kevin Tansley
    
    500,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009Denis Burger
    
    60,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009Peter Coyne
    
    60,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009Jim Walsh
    
    60,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009Clint Severson
    
    120,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009James Merselis
    
    120,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009
 *
    
    All options issued are subject to a 7 year life from date of grant. 2008 Share Options Granted:
 Number of Options
    
    Exercise Price of
    
    
    Date of OptionDirector/Executive Officer
    
    Granted
    
    Options Granted
    
    
    Grant*Brendan Farrell
    
    250,000 A shares
    
    US$
    1.07 per A share
    
    
    18 March 2008Rory Nealon
    
    200,000 A shares
    
    US$
    1.07 per A share
    
    
    18 March 2008Ronan OCaoimh
    
    175,000 A shares
    
    US$
    1.07 per A share
    
    
    18 March 2008Kevin Tansley
    
    150,000 A shares
    
    US$
    1.07 per A share
    
    
    18 March 2008Brendan Farrell
    
    300,000 A shares
    
    US$
    0.74 per A share
    
    
    16 September 2008Rory Nealon
    
    240,000 A shares
    
    US$
    0.74 per A share
    
    
    16 September 2008Ronan OCaoimh
    
    200,000 A shares
    
    US$
    0.74 per A share
    
    
    16 September 2008Kevin Tansley
    
    150,000 A shares
    
    US$
    0.74 per A share
    
    
    16 September 2008
 *
    
    All options issued are subject to a 7 year life from date of grant.  Directors Service Contracts
      39




---



##### Table of Contents



Board Practices
    Employees
   Stock Option Plans
    40




---



##### Table of Contents



Number of Options
    
    Exercise PriceDirector/Officer
    
    (A Shares)
    
    (Per A Share)
    
    Expiration Date of OptionsRonan OCaoimh
    
    450,000
    
    US$2.56
    
    26  August 2011250,000
    
    US$1.67
    
    2 November 2012350,000
    
    US$2.09
    
    13 December 2013175,000
    
    US$1.07
    
    18 March 2015200,000
    
    US$0.74
    
    16 September 2015800,000
    
    US$0.66
    
    8 May 2016Rory Nealon
    
    175,000
    
    US$2.56
    
    26 August 2011100,000
    
    US$1.67
    
    2 November 2012150,000
    
    US$2.09
    
    13 December 2013200,000
    
    US$1.07
    
    18 March 2015240,000
    
    US$0.74
    
    16 September 2015500,000
    
    US$0.66
    
    8 May 2016Denis Burger
    
    60,000
    
    US$2.56
    
    26 August 201125,000
    
    US$1.67
    
    2 November 201225,000
    
    US$2.09
    
    13 December 201360,000
    
    US$0.66
    
    8 May 2016Jim Walsh
    
    168,753
    
    US$2.56
    
    26 August 201150,000
    
    US$1.67
    
    2 November 201225,000
    
    US$2.09
    
    13 December 201360,000
    
    US$0.66
    
    8 May 2016Peter Coyne
    
    60,000
    
    US$2.56
    
    26 August 201125,000
    
    US$1.67
    
    2 November 201225,000
    
    US$2.09
    
    13 December 201360,000
    
    US$0.66
    
    8 May 2016Clint Severson
    
    120,000
    
    US$0.66
    
    8 May 2016James Merselis
    
    120,000
    
    US$0.66
    
    8 May 2016Kevin Tansley
    
    20,000
    
    US$2.79
    
    19 May 201120,000
    
    US$1.59
    
    16 August 201230,000
    
    US$1.78
    
    26 July 201375,000
    
    US$2.24
    
    07 March 2014150,000
    
    US$1.07
    
    18 March 2015150,000
    
    US$0.74
    
    16 September 2015500,000
    
    US$0.66
    
    8 May 2016
  Number of A
    
    
    Range of
    
    
    Range ofOrdinary Shares
    
    
    Exercise Price
    
    
    Exercise PriceSubject to Option
    
    
    per Ordinary Share
    
    
    per ADSTotal options outstanding
    
    
    8,304,920
    
    
    US$0.66-US$4.00
    
    
    US$
    2.64-US$16.00
   41




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##### Table of Contents



Item 7
 Major Shareholders and
Related Party Transactions
    Number of A
    
    
    Percentage
    
    
    Number of B
    
    
    Percentage
    
    
    PercentageOrdinary Shares
    
    
    Outstanding
    
    
    Ordinary Shares
    
    
    Outstanding
    
    
    TotalBeneficially
    
    
    A Ordinary
    
    
    Beneficially
    
    
    B Ordinary
    
    
    VotingOwned
    
    
    Shares
    
    
    Owned
    
    
    Shares
    
    
    PowerHeartland Advisors Inc.
    
    
    7,862,400
    
    
    
    9.5
    %
    
    
    
    
    
    
    
    
    
    
    9.3
    %William Blair Capital
Management LLC
    
    
    7,106,952
    
    
    
    8.6
    %
    
    
    
    
    
    
    
    
    
    
    8.4
    %Goldman Capital
Management Inc.
    
    
    6,380,000
    
    
    
    7.7
    %
    
    
    
    
    
    
    
    
    
    
    7.6
    %Ronan OCaoimh
    
    
    4,997,914
    (1)
    
    
    5.9
    %
    
    
    
    
    
    
    
    
    
    
    5.8
    %Rory Nealon
    
    
    755,000
    (2)
    
    
    0.9
    %
    
    
    
    
    
    
    
    
    
    
    0.9
    %Jim Walsh
    
    
    1,637,362
    (3)
    
    
    2.0
    %
    
    
    
    
    
    
    
    
    
    
    1.9
    %Denis R. Burger
    
    
    250,000
    (4)
    
    
    0.3
    %
    
    
    
    
    
    
    
    
    
    
    0.3
    %Peter Coyne
    
    
    110,000
    (5)
    
    
    0.1
    %
    
    
    
    
    
    
    
    
    
    
    0.1
    %Kevin Tansley
    
    
    237,000
    (6)
    
    
    0.3
    %
    
    
    
    
    
    
    
    
    
    
    0.3
    %Clint Severson
    
    
    48,000
    
    
    
    0.1
    %
    
    
    
    
    
    
    
    
    
    
    0.1
    %James Merselis
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Potenza Investments Inc.
    
    
    
    
    
    
    
    
    
    
    500,000
    (7)
    
    
    71.4
    %
    
    
    1.2
    %Officers and
Directors as a group (8 persons)
    
    
    8,035,276
    (1)(2)(3)(4)(5)(6)
    
    
    9.4
    %
    
    
    
    
    
    
    
    
    
    
    9.3
    %
 (1)
    
    Includes 1,160,418 shares issuable upon exercise of options.(2)
    
    Includes 555,000 shares issuable upon exercise of options.(3)
    
    Includes 243,750 shares issuable upon exercise of options.(4)
    
    Includes 110,000 shares issuable upon exercise of options.(5)
    
    Includes 110,000 shares issuable upon exercise of options.(6)
    
    Includes 185,000 shares issuable upon exercise of options.(7)
    
    These B shares have two votes per share.  42




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Related Party Transactions
            43




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##### Table of Contents



Item 8
 Financial Information
 Legal Proceedings
  
 Item 9
 The Offer and Listing
   ADSs
 Year Ended December 31
    
    High
    
    
    Low2005
    
    US$
    11.72
    
    
    US$
    6.282006
    
    US$
    9.54
    
    
    US$
    7.092007
    
    US$
    11.75
    
    
    US$
    5.722008
    
    US$
    6.95
    
    
    US$
    1.252009
    
    US$
    5.70
    
    
    US$
    1.05
  44




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##### Table of Contents



ADSs
 2008
    
    High
    
    
    LowQuarter ended March 31
    
    US$
    6.95
    
    
    US$
    4.15Quarter ended June 30
    
    US$
    4.61
    
    
    US$
    3.39Quarter ended September 30
    
    US$
    3.90
    
    
    US$
    2.82Quarter ended December 31
    
    US$
    3.10
    
    
    US$
    1.25
 ADSs
 2009
    
    High
    
    
    LowQuarter ended March 31
    
    US$
    2.35
    
    
    US$
    1.05Quarter ended June 30
    
    US$
    4.84
    
    
    US$
    1.50Quarter ended September 30
    
    US$
    5.70
    
    
    US$
    3.06Quarter ended December 31
    
    US$
    4.43
    
    
    US$
    3.33
 ADSs
 Month Ended
    
    High
    
    
    LowMarch 31, 2009
    
    US$
    2.00
    
    
    US$
    1.05April 30, 2009
    
    US$
    2.92
    
    
    US$
    1.50May 31, 2009
    
    US$
    3.63
    
    
    US$
    2.45June 30, 2009
    
    US$
    4.84
    
    
    US$
    2.84July 31, 2009
    
    US$
    5.70
    
    
    US$
    3.95August 31, 2009
    
    US$
    4.39
    
    
    US$
    3.35September 30, 2009
    
    US$
    4.75
    
    
    US$
    3.06October 31, 2009
    
    US$
    4.42
    
    
    US$
    3.33November 30, 2009
    
    US$
    4.25
    
    
    US$
    3.60December 31, 2009
    
    US$
    4.43
    
    
    US$
    3.65January 31, 2010
    
    US$
    4.30
    
    
    US$
    3.79February 28, 2010
    
    US$
    5.16
    
    
    US$
    3.76
   45




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##### Table of Contents



Item 10
 Memorandum and
Articles of Association
 Objects
  Powers and Duties of Directors
      Rights, Preferences and Restrictions Attaching to Shares
     46




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Action Necessary to Change the Rights of Shareholders
  Calling of AGMs and EGMs of Shareholders
     47




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##### Table of Contents



Other Provisions of the Memorandum and Articles of Association
  
    
    which would have an effect of delaying, deferring or preventing a change in control of
the Company and which would operate only with respect to a merger, acquisition or corporate
restructuring involving the Company (or any of its subsidiaries); or
    
    governing the ownership threshold above which a shareholder ownership must be disclosed; or
    
    imposing conditions governing changes in the capital which are more stringent than is
required by Irish law.
  Irish Law
     48




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##### Table of Contents



Material Contracts
  Agreement to sell the Coagulation business to Diagnostica Stago SAS
  Acquisition of the immuno-technology business of Cortex Biochem Inc
   1.
    
    Trinity Biotech acquired Cortexs lists of customers and suppliers, inventory of immuno
reagents, certain accounts receivable and accounts payable balances and the Cortex Biochem
website.
 2.
    
    The vendor undertook not to compete directly with the Cortex business for a period of
three years after the sale of the business to Trinity
 3.
    
    All of the purchase consideration was payable on signing of the contract.
 Acquisition of certain components of the distribution business of Sterilab Services UK
   1.
    
    Trinity Biotech acquired a list of customers, inventory of infectious diseases and
autoimmune products and all diagnostic instruments placed with Sterilabs customers
 2.
    
    The vendor undertook not to compete directly with Trinitys infectious disease business
in the United Kingdom for a period of one year after the sale of the Sterilab business to
Trinity
 3.
    
    All of the purchase consideration was payable on signing of the contract.
 Exchange Controls and Other Limitations
Affecting Security Holders
    49




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Taxation
     US Federal Income Tax Consequences to US Holders
    50




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##### Table of Contents



51




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##### Table of Contents



52




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##### Table of Contents



53




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Republic of Ireland Taxation
           54




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##### Table of Contents




    
    the depository banks ADS register shows that the direct beneficial owner of the
dividends has a US address on the register, or
 
    
    there is an intermediary between the depository bank and the beneficial shareholder and
the depository bank receives confirmation from the intermediary that the beneficial
shareholders address in the intermediarys records is in the US.
    
    
    an individual resident in the US (or certain other countries with which Ireland has a
double taxation treaty) and who is neither resident nor ordinarily resident in Ireland; or
 
    
    a corporation that is not resident in Ireland and which is ultimately controlled by
persons resident in the US (or certain other countries with which Ireland has a double
taxation treaty); or
 
    
    a corporation that is not resident in Ireland and whose principal class of shares (or
its 75% parents principal class of shares) are substantially or regularly traded on a
recognised stock exchange; or
 
    
    is otherwise entitled to an exemption from DWT.
 Disposals of Ordinary Shares or ADSs
   
  55




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##### Table of Contents




  
 
   56




---



##### Table of Contents




  Dividend Policy
   Documents on Display
  
 Item 11
 Qualitative and Quantitative Disclosures about Market Risk
 Qualitative information about Market Risk
       57




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##### Table of Contents



Quantitative information about Market Risk
 Interest rate sensitivity
    GroupMaturity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    After
    
    
    
    
    
    
    FairBefore December 31
    
    2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2014
    
    
    Total
    
    
    valueLong-term debtVariable rate 
US$000
    
    
    11,735
    
    
    
    6,365
    
    
    
    11,227
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    29,327
    
    
    
    29,327Average interest rate
    
    
    2.53
    %
    
    
    2.53
    %
    
    
    2.53
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2.53
    %Fixed rate  US$000
    
    
    890
    
    
    
    936
    
    
    
    506
    
    
    
    118
    
    
    
    79
    
    
    
    
    
    
    
    2,529
    
    
    
    2,541Average interest rate
    
    
    6.31
    %
    
    
    6.31
    %
    
    
    5.99
    %
    
    
    6.11
    %
    
    
    6.11
    %
    
    
    
    
    
    
    6.21
    %
 Exchange rate sensitivity
    58




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##### Table of Contents



Item 12
 Description of Securities Other than Equity Securities
  
 Part II
 
 Item 13
 Defaults, Dividend Arrearages and Delinquencies
  
 Item 14
 Material Modifications to the Rights of Security Holders and Use of Proceeds
  
 Item 15
 Control and Procedures
 Evaluation of Disclosure Controls and Procedures
 .
  Managements Annual Report on Internal Control over Financial Reporting
     59




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##### Table of Contents



Changes in Internal Controls over Financial Reporting
  Item 16
 
 16A Audit Committee Financial Expert
    
 16B Code of Ethics
  
 16C Principal Accounting fees and services
 Fees Billed by Independent Public Accountants
 Year ended December 31,
    
    
    Year ended December 31,2009
    
    
    
    
    
    
    2008US$000
    
    
    %
    
    
    US$000
    
    
    %Audit
    
    
    625
    
    
    
    89
    %
    
    
    713
    
    
    
    89
    %Audit-related
    
    
    6
    
    
    
    1
    %
    
    
    6
    
    
    
    1
    %Tax
    
    
    70
    
    
    
    10
    %
    
    
    80
    
    
    
    10
    %Total
    
    
    701
    
    
    
    
    
    
    
    799
    60




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##### Table of Contents



Pre-Approval Policies and Procedures
   Exemptions from the Listing Requirements and Standards for Audit Committee
  Purchase of equity securities by the issuer and affiliates and purchasers
  
 Part III
 
 Item 17
 Financial Statements
  
 Item 18
 Financial Statements
  61




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
  Internal Control  Integrated Framework
    Internal Control
 Integrated Framework
   
  62




---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
     Internal Control  Integrated Framework
  
  63




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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
      
  64




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##### Table of Contents



CONSOLIDATED STATEMENTS OF OPERATIONS
 Year ended December, 312009
    
    
    2008
    
    
    2007Total
    
    
    Total
    
    
    TotalNotes
    
    
    US$000
    
    
    US$000
    
    
    US$000Revenues
    
    
    2
    
    
    
    125,907
    
    
    
    140,139
    
    
    
    143,617Cost of sales
    
    
    
    
    
    
    (68,891
    )
    
    
    (77,645
    )
    
    
    (75,643
    )Cost of sales  restructuring expenses
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    (953
    )Cost of sales  inventory write off/ provision
    
    
    2, 3
    
    
    
    
    
    
    
    
    
    
    
    (11,772
    )Total cost of sales
    
    
    
    
    
    
    (68,891
    )
    
    
    (77,645
    )
    
    
    (88,368
    )Gross profit
    
    
    
    
    
    
    57,016
    
    
    
    62,494
    
    
    
    55,249Other operating income
    
    
    5
    
    
    
    437
    
    
    
    1,173
    
    
    
    413Research and development expenses
    
    
    
    
    
    
    (7,341
    )
    
    
    (7,544
    )
    
    
    (6,802
    )Research and development  restructuring expenses
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    (6,907
    )Total research and development expenses
    
    
    
    
    
    
    (7,341
    )
    
    
    (7,544
    )
    
    
    (13,709
    )Selling, general and administrative expenses
    
    
    
    
    
    
    (36,013
    )
    
    
    (47,816
    )
    
    
    (51,010
    )Selling, general and administrative  impairment
charges and restructuring expenses
    
    
    3
    
    
    
    
    
    
    
    (87,882
    )
    
    
    (20,315
    )Total selling, general and administrative expenses
    
    
    
    
    
    
    (36,013
    )
    
    
    (135,698
    )
    
    
    (71,325
    )Operating profit/(loss)
    
    
    
    
    
    
    14,099
    
    
    
    (79,575
    )
    
    
    (29,372
    )Financial income
    
    
    4
    
    
    
    8
    
    
    
    65
    
    
    
    457Financial expenses
    
    
    2, 4
    
    
    
    (1,192
    )
    
    
    (2,160
    )
    
    
    (3,148
    )Net financing costs
    
    
    
    
    
    
    (1,184
    )
    
    
    (2,095
    )
    
    
    (2,691
    )Profit/(loss) before tax
    
    
    6
    
    
    
    12,915
    
    
    
    (81,670
    )
    
    
    (32,063
    )Total income tax (expense)/credit
    
    
    2, 9
    
    
    
    (1,091
    )
    
    
    3,892
    
    
    
    (3,309
    )Profit/(loss) for the year (all attributable to
owners of the parent)
    
    
    2
    
    
    
    11,824
    
    
    
    (77,778
    )
    
    
    (35,372
    )Basic earnings/(loss) per ordinary share (US Dollars)
    
    
    10
    
    
    
    0.14
    
    
    
    (0.96
    )
    
    
    (0.47
    )Basic
earnings/(loss) per B ordinary share (US Dollars)
    
    
    10
    
    
    
    0.28
    
    
    
    (1.91
    )
    
    
    (0.94
    )Diluted
earnings/(loss) per ordinary share (US Dollars)
    
    
    10
    
    
    
    0.14
    
    
    
    (0.96
    )
    
    
    (0.47
    )Diluted earnings/(loss) per B ordinary share (US Dollars)
    
    
    10
    
    
    
    0.28
    
    
    
    (1.91
    )
    
    
    (0.94
    )Basic earnings/(loss) per ADS (US Dollars)
    
    
    10
    
    
    
    0.57
    
    
    
    (3.82
    )
    
    
    (1.86
    )Diluted earnings/(loss) per ADS (US Dollars)
    
    
    10
    
    
    
    0.57
    
    
    
    (3.82
    )
    
    
    (1.86
    )
  65




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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 Year ended December 31,2009
    
    
    2008
    
    
    2007Notes
    
    

US$000
    
    

US$000
    
    

US$000Profit/(loss) for the year
    
    
    2
    
    
    
    11,824
    
    
    
    (77,778
    )
    
    
    (35,372
    )Other comprehensive income:Foreign exchange translation differences
    
    
    
    
    
    
    215
    
    
    
    (806
    )
    
    
    1,072Cash flow hedges:Effective portion of changes in fair value
    
    
    
    
    
    
    (31
    )
    
    
    (252
    )
    
    
    224Deferred tax
on income and expenses recognised directly in equity
    
    
    
    
    
    
    3
    
    
    
    26
    
    
    
    (23
    )Other comprehensive income
    
    
    
    
    
    
    187
    
    
    
    (1,032
    )
    
    
    1,273Total
Comprehensive Income (all attributable to owners of the parent)
    
    
    
    
    
    
    12,011
    
    
    
    (78,810
    )
    
    
    (34,099
    )
  66




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##### Table of Contents



CONSOLIDATED BALANCE SHEETS
 December 31,
    
    
    December 31,2009
    
    
    2008Notes
    
    

US$000
    
    

US$000ASSETSNon-current assetsProperty, plant and equipment
    
    
    11
    
    
    
    12,174
    
    
    
    11,855Goodwill and intangible assets
    
    
    12
    
    
    
    44,822
    
    
    
    38,525Deferred tax assets
    
    
    13
    
    
    
    5,801
    
    
    
    3,051Other assets
    
    
    14
    
    
    
    1,212
    
    
    
    877Total non-current assets
    
    
    
    
    
    
    64,009
    
    
    
    54,308Current assetsInventories
    
    
    15
    
    
    
    39,198
    
    
    
    42,317Trade and other receivables
    
    
    16
    
    
    
    22,931
    
    
    
    27,418Income tax receivable
    
    
    
    
    
    
    229
    
    
    
    282Cash and cash equivalents
    
    
    17
    
    
    
    6,078
    
    
    
    5,184Total current assets
    
    
    
    
    
    
    68,436
    
    
    
    75,201TOTAL ASSETS
    
    
    2
    
    
    
    132,445
    
    
    
    129,509EQUITY AND LIABILITIESEquity attributable to the equity holders of the parentShare capital
    
    
    
    
    
    
    1,080
    
    
    
    1,070Share premium
    
    
    
    
    
    
    160,683
    
    
    
    159,864Accumulated deficit
    
    
    
    
    
    
    (87,070
    )
    
    
    (99,493
    )Translation reserve
    
    
    
    
    
    
    206
    
    
    
    (9
    )Other reserves
    
    
    
    
    
    
    4,445
    
    
    
    4,473Total equity
    
    
    
    
    
    
    79,344
    
    
    
    65,905Current liabilitiesInterest-bearing loans and borrowings
    
    
    20
    
    
    
    12,625
    
    
    
    12,656Derivative financial instruments
    
    
    27
    
    
    
    58
    
    
    
    27Income tax payable
    
    
    
    
    
    
    24
    
    
    
    5Trade and other payables
    
    
    21
    
    
    
    12,844
    
    
    
    22,969Provisions
    
    
    22
    
    
    
    50
    
    
    
    50Total current liabilities
    
    
    
    
    
    
    25,601
    
    
    
    35,707Non-current liabilitiesInterest-bearing loans and borrowings
    
    
    20
    
    
    
    19,231
    
    
    
    23,465Other payables
    
    
    23
    
    
    
    59
    
    
    
    59Deferred tax liabilities
    
    
    13
    
    
    
    8,210
    
    
    
    4,373Total non-current liabilities
    
    
    
    
    
    
    27,500
    
    
    
    27,897TOTAL LIABILITIES
    
    
    2
    
    
    
    53,101
    
    
    
    63,604TOTAL EQUITY AND LIABILITIES
    
    
    
    
    
    
    132,445
    
    
    
    129,509
  67




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##### Table of Contents



STATEMENT OF CHANGES IN EQUITY
 Share
    
    
    Sharecapital
    
    
    capital
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Convertible
    
    
    (AccumulatedA
    
    
    B
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    notes 
    
    
    deficit)/ordinary
    
    
    ordinary
    
    
    Share
    
    
    Translation
    
    
    Warrant
    
    
    Hedging
    
    
    equity
    
    
    retainedshares
    
    
    shares
    
    
    premium
    
    
    reserve
    
    
    reserve
    
    
    reserves
    
    
    component
    
    
    earnings
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Balance at January 1, 2007
    
    
    966
    
    
    
    12
    
    
    
    151,774
    
    
    
    (275
    )
    
    
    3,803
    
    
    
    
    
    
    
    164
    
    
    
    10,818
    
    
    
    167,262Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,072
    
    
    
    
    
    
    
    201
    
    
    
    
    
    
    
    (35,372
    )
    
    
    (34,099
    )Share-based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,482
    
    
    
    1,482Options exercised
    
    
    4
    
    
    
    
    
    
    
    450
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    454Class A shares issued on conversion of
convertible notes
    
    
    9
    
    
    
    
    
    
    
    1,813
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,822Convertible notes  transfer to retained
earnings on maturity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (164
    )
    
    
    164
    
    
    
    Share issue expenses
    
    
    
    
    
    
    
    
    
    
    (76
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (76
    )Balance at December 31, 2007
    
    
    979
    
    
    
    12
    
    
    
    153,961
    
    
    
    797
    
    
    
    3,803
    
    
    
    201
    
    
    
    
    
    
    
    (22,908
    )
    
    
    136,845Balance at January 1, 2008
    
    
    979
    
    
    
    12
    
    
    
    153,961
    
    
    
    797
    
    
    
    3,803
    
    
    
    201
    
    
    
    
    
    
    
    (22,908
    )
    
    
    136,845Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (806
    )
    
    
    
    
    
    
    (226
    )
    
    
    
    
    
    
    (77,778
    )
    
    
    (78,810
    )Share-based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,193
    
    
    
    1,193Options exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Class A
shares issued on conversion of convertible notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Class A shares issued in private placement
    
    
    79
    
    
    
    
    
    
    
    7,037
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,116Share issue expenses
    
    
    
    
    
    
    
    
    
    
    (439
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (439
    )Fair Value of Warrants issued during the year
    
    
    
    
    
    
    
    
    
    
    (695
    )
    
    
    
    
    
    
    695
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance at December 31, 2008
    
    
    1,058
    
    
    
    12
    
    
    
    159,864
    
    
    
    (9
    )
    
    
    4,498
    
    
    
    (25
    )
    
    
    
    
    
    
    (99,493
    )
    
    
    65,905Balance at January 1, 2009
    
    
    1,058
    
    
    
    12
    
    
    
    159,864
    
    
    
    (9
    )
    
    
    4,498
    
    
    
    (25
    )
    
    
    
    
    
    
    (99,493
    )
    
    
    65,905Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    215
    
    
    
    
    
    
    
    (28
    )
    
    
    
    
    
    
    11,824
    
    
    
    12,011Share-based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    599
    
    
    
    599Options exercised
    
    
    10
    
    
    
    
    
    
    
    887
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    897Share issue expenses
    
    
    
    
    
    
    
    
    
    
    (68
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (68
    )Balance at December 31, 2009
    
    
    1,068
    
    
    
    12
    
    
    
    160,683
    
    
    
    206
    
    
    
    4,498
    
    
    
    (53
    )
    
    
    
    
    
    
    (87,070
    )
    
    
    79,344
  68




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##### Table of Contents



CONSOLIDATED STATEMENT OF CASH FLOWS
 Year ended December 31,2009
    
    
    2008
    
    
    2007Notes
    
    
    US$000
    
    
    US$000
    
    
    US$000Cash flows from operating activitiesProfit/(loss) for the year
    
    
    
    
    
    
    11,824
    
    
    
    (77,778
    )
    
    
    (35,372
    )Adjustments to reconcile net profit to cash provided
by operating activities:Depreciation
    
    
    
    
    
    
    1,786
    
    
    
    4,425
    
    
    
    4,341Amortisation
    
    
    
    
    
    
    1,959
    
    
    
    3,616
    
    
    
    3,418Income tax expense/(credit)
    
    
    
    
    
    
    1,091
    
    
    
    (3,892
    )
    
    
    3,309Financial income
    
    
    
    
    
    
    (8
    )
    
    
    (65
    )
    
    
    (457
    )Financial expense
    
    
    
    
    
    
    1,192
    
    
    
    2,160
    
    
    
    3,148Share-based payments
    
    
    
    
    
    
    521
    
    
    
    1,166
    
    
    
    1,403Foreign exchange losses on operating cash flows
    
    
    
    
    
    
    109
    
    
    
    77
    
    
    
    (26
    )Loss/(profit) on disposal / retirement of property, plant and equipment
    
    
    
    
    
    
    66
    
    
    
    (682
    )
    
    
    17Impairment of assets
    
    
    3
    
    
    
    
    
    
    
    85,793
    
    
    
    19,156Non-cash restructuring expenses
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    18,573Other non-cash items
    
    
    
    
    
    
    1,158
    
    
    
    871
    
    
    
    577Operating cash flows before changes in working capital
    
    
    
    
    
    
    19,698
    
    
    
    15,691
    
    
    
    18,087Decrease/(increase) in trade and other receivables
    
    
    
    
    
    
    3,872
    
    
    
    (4,131
    )
    
    
    5,226Decrease/(increase) in inventories
    
    
    
    
    
    
    2,372
    
    
    
    2,062
    
    
    
    (7,101
    )(Decrease)/increase in trade and other payables
    
    
    
    
    
    
    (10,409
    )
    
    
    (676
    )
    
    
    1,966Cash generated from operations
    
    
    
    
    
    
    15,533
    
    
    
    12,946
    
    
    
    18,178Interest paid
    
    
    
    
    
    
    (883
    )
    
    
    (2,639
    )
    
    
    (2,802
    )Interest received
    
    
    
    
    
    
    12
    
    
    
    63
    
    
    
    429Income taxes received/(paid)
    
    
    
    
    
    
    70
    
    
    
    359
    
    
    
    (456
    )Net cash provided by operating activities
    
    
    
    
    
    
    14,732
    
    
    
    10,729
    
    
    
    15,349Cash flows from investing activitiesPayments to acquire subsidiaries and businesses
    
    
    24
    
    
    
    
    
    
    
    
    
    
    
    (4,414
    )Deferred consideration to acquire subsidiaries and
businesses
    
    
    
    
    
    
    
    
    
    
    (2,802
    )
    
    
    (3,472
    )Payments to acquire intangible assets
    
    
    
    
    
    
    (8,103
    )
    
    
    (8,981
    )
    
    
    (7,851
    )Disposal of financial assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15,500Proceeds from disposal of property, plant and equipment
    
    
    
    
    
    
    249
    
    
    
    808
    
    
    
    84Acquisition of property, plant and equipment
    
    
    
    
    
    
    (2,481
    )
    
    
    (3,713
    )
    
    
    (8,262
    )Net cash used in investing activities
    
    
    
    
    
    
    (10,335
    )
    
    
    (14,688
    )
    
    
    (8,415
    )Cash flows from financing activitiesProceeds from issue of ordinary share capital
    
    
    
    
    
    
    897
    
    
    
    7,116
    
    
    
    454Proceeds from borrowings, short-term debt
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,000Proceeds from borrowings, long-term debt
    
    
    
    
    
    
    307
    
    
    
    
    
    
    
    Expenses paid in connection with share issue and debt
financing
    
    
    
    
    
    
    (68
    )
    
    
    (624
    )
    
    
    (70
    )Repayment of long-term debt
    
    
    
    
    
    
    (5,400
    )
    
    
    (5,224
    )
    
    
    (8,285
    )Proceeds from new finance leases
    
    
    
    
    
    
    1,298
    
    
    
    
    
    
    
    2,087Payment of finance lease liabilities
    
    
    
    
    
    
    (546
    )
    
    
    (787
    )
    
    
    (294
    )Net cash (used in)/provided by financing activities
    
    
    
    
    
    
    (3,512
    )
    
    
    481
    
    
    
    (1,108
    )Increase/(decrease) in cash and cash equivalents
    
    
    
    
    
    
    885
    
    
    
    (3,478
    )
    
    
    5,826Effects of exchange rate movements on cash held
    
    
    
    
    
    
    9
    
    
    
    (38
    )
    
    
    53Cash and cash equivalents at beginning of year
    
    
    
    
    
    
    5,184
    
    
    
    8,700
    
    
    
    2,821Cash and cash equivalents at end of year
    
    
    17
    
    
    
    6,078
    
    
    
    5,184
    
    
    
    8,700
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIESThe principal accounting policies adopted by Trinity Biotech plc and its subsidiaries (the
Group) are as follows:a)
    
    Statement of complianceThe consolidated financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS) both as issued by the International Accounting Standards
Board (IASB) and as subsequently adopted by the European Union (EU) (together IFRS). The
IFRS applied are those effective for accounting periods beginning on or after 1 January 2009.
Consolidated financial statements are required by Irish law to comply with IFRS as adopted by the
EU which differ in certain respects from IFRS as issued by the IASB. These differences
predominantly relate to the timing of adoption of new standards by the EU. However, as none of
the differences are relevant in the context of Trinity Biotech, the consolidated financial
statements for the periods presented comply with IFRS both as issued by the IASB and as adopted
by the EU.b)
    
    Basis of preparationThe consolidated financial statements have been prepared in United States Dollars (US$), rounded to
the nearest thousand, under the historical cost basis of accounting, except for derivative
financial instruments and share-based payments which are initially recorded at fair value.
Derivatives are also subsequently carried at fair value.The preparation of financial statements in conformity with IFRS requires management to make
judgements, estimates and assumptions that affect the application of policies and amounts reported
in the financial statements and accompanying notes. The estimates and associated assumptions are
based on historical experience and various other factors that are believed to be reasonable under
the circumstances, the results of which form the basis of making the judgements about the carrying
value of assets and liabilities that are not readily apparent from other sources. Actual results
may differ from these estimates.The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects
only that period or in the period of the revision and future periods if the revision affects both
current and future periods.Judgements made by management that have a significant effect on the financial statements and
estimates with a significant risk of material adjustment in the next year are discussed in note
29.Having considered the Groups current financial position, its cashflow projections, its existing
bank debt facility and other potential sources of funding available to the Group, the directors
believe that the Group will be able to continue in operational existence for at least the next 12
months from the date of approval of these consolidated financial statements and that it is
appropriate to continue to prepare the consolidated financial statements on a going concern basis.The accounting policies set out below have been applied consistently to all periods presented in
these consolidated financial statements. The accounting policies have been applied consistently by
all Group entities.Certain prior year amounts have been reclassified to conform to current presentation.c)
    
    Basis of consolidationSubsidiariesSubsidiaries are entities controlled by the Company. Control exists when the Company has the
power, directly or indirectly, to govern the financial and reporting policies of an entity so as to
obtain benefits from its activities. In assessing control, potential voting rights that presently
are exercisable or convertible are taken into account. The financial statements of subsidiaries
are included in the consolidated financial statements from the date that control commences until
the date that control ceases.Transactions eliminated on consolidationIntra-group balances and any unrealised gains or losses or income and expenses arising from
intra-group transactions are eliminated in preparing the consolidated financial statements.
  70




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
  d)
    
    Property, plant and equipmentOwned assetsItems of property, plant and equipment are stated at cost less any accumulated depreciation and any
impairment losses (see note 1(h)). The cost of self-constructed assets includes the cost of
materials, direct labour and attributable overheads. It is not Group policy to revalue any items
of property, plant and equipment.
  
    
    Leasehold improvements
    
    5-15 years
    
    Office equipment and fittings
    
    10 years
    
    Buildings
    
    50 years
    
    Computer equipment
    
    3-5 years
    
    Plant and equipment
    
    5-15 years
 Land is not depreciated. The residual values, if not insignificant, useful lives and depreciation
methods of property, plant and equipment are reviewed and adjusted if appropriate, at each balance
sheet date.Leased assets  as lesseeLeases under terms of which the Group assumes substantially all the risks and rewards of ownership
are classified as finance leases. Property, plant and equipment acquired by way of finance lease
is stated at an amount equal to the lower of its fair value and present value of the minimum lease
payments at inception of the lease, less accumulated depreciation and any impairment losses.Depreciation is calculated in order to write-off the amounts capitalised over the estimated useful
lives of the assets, or the lease term if shorter, by equal annual instalments. The excess of the
total rentals under a lease over the amount capitalised is treated as interest, which is charged to
the statement of operations in proportion to the amount outstanding under the lease. Leased assets
are reviewed for impairment (see note 1(h)).Leases other than finance leases are classified as operating leases, and the rentals thereunder
are charged to the statement of operations on a straight-line basis over the period of the leases.
Lease incentives are recognised in the statement of operations on a straight-line basis over the
lease term.Leased assets  as lessorLeases where the Group substantially transfers the risks and benefits of ownership of the asset to
the customer are classified as finance leases within finance lease receivables. The Group
recognises the amount receivable from assets leased under finance leases at an amount equal to the
net investment in the lease. Finance lease income is recognised as revenue in the statement of
operations reflecting a constant periodic rate of return on the Groups net investment in the
lease.Assets provided to customers under leases other than finance leases are classified as operating
leases and carried in property, plant and equipment at cost and are depreciated on a straight-line
basis over the useful life of the asset or the lease term, if shorter.Subsequent costsThe Group recognises in the carrying amount of an item of property, plant and equipment the cost of
replacing part of such an item when that cost is incurred if it is probable that the future
economic benefits embodied within the item will flow to the Group and the cost of the replaced item
can be measured reliably. All other costs are recognised in the statement of operations as an
expense as incurred.
  71




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)e)
    
    Business combinationsAll business combinations are accounted for by applying the purchase method.The cost of a business combination is measured as the aggregate of the fair values at the date of
exchange of assets given, liabilities incurred or assumed and equity instruments issued in exchange
for control together with any directly attributable expenses. To the extent that settlement of all
or any part of a business combination is deferred for a period of 12 months or longer, the fair
value of the deferred component is determined through discounting the amounts payable to their
present value at the date of exchange. The discount component is unwound as an interest charge in
the statement of operations over the life of the obligation.Where a business combination agreement provides for an adjustment to the cost of the combination
contingent on future events, the estimated present value of the adjustment is included in the cost
at the acquisition date. Changes in these amounts subsequently are reflected in goodwill.When the initial accounting for a business combination is determined provisionally, any subsequent
adjustments to the provisional values allocated to the identifiable assets, liabilities and
contingent liabilities are made within twelve months of the acquisition date and treated
retrospectively as an adjustment to goodwill.f)
    
    GoodwillIn respect of business combinations that have occurred since January 1, 2004 (being the transition
date to IFRS), goodwill represents the difference between the cost of the acquisition and the fair
value of the net identifiable assets acquired.In respect of acquisitions prior to this date, goodwill is included on the basis of its deemed
cost, which represents the amount recorded under the old basis of accounting, Irish GAAP,
(Previous GAAP). Save for retrospective restatement of deferred tax as an adjustment to retained
earnings in accordance with IAS 12, Income Taxes,the classification and accounting treatment of
business combinations undertaken prior to the transition date were not reconsidered in preparing
the Groups opening IFRS balance sheet as at January 1, 2004.To the extent that the Groups interest in the net fair value of the identifiable assets,
liabilities and contingent liabilities acquired exceeds the cost of a business combination, the
identification and measurement of the related assets, liabilities and contingent liabilities are
revisited accompanied by a reassessment of the cost of the transaction, and any remaining balance
is immediately recognised in the statement of operations.At the acquisition date, any goodwill is allocated to each of the cash generating units expected to
benefit from the combinations synergies. Following initial recognition, goodwill is stated at
cost less any accumulated impairment losses (see note 1(h)).g)
    
    Intangibles, including research and development (other than goodwill)An intangible asset, which is an identifiable non-monetary asset without physical substance, is
recognised to the extent that it is probable that the expected future economic benefits
attributable to the asset will flow to the Group and that its cost can be measured reliably. The
asset is deemed to be identifiable when it is separable (that is, capable of being divided from the
entity and sold, transferred, licensed, rented or exchanged, either individually or together with a
related contract, asset or liability) or when it arises from contractual or other legal rights,
regardless of whether those rights are transferable or separable from the Group or from other
rights and obligations.Intangible assets acquired as part of a business combination are capitalised separately from
goodwill if the intangible asset meets the definition of an asset and the fair value can be
reliably measured on initial recognition. Subsequent to initial recognition, these intangible
assets are carried at cost less any accumulated amortisation and any accumulated impairment losses
(note 1(h)). Definite lived intangible assets are reviewed for indicators of impairment annually
while indefinite lived assets and those not yet brought into use are tested for impairment
annually, either individually or at the cash generating unit level.
  72




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)Research and developmentExpenditure on research activities, undertaken with the prospect of gaining new scientific or
technical knowledge and understanding, is recognised in the statement of operations as an expense
as incurred. Expenditure on development activities, whereby research findings are applied to a
plan or design for the production of new or substantially improved products and processes, is
capitalised if the product or process is technically and commercially feasible and the Group has
sufficient resources to complete the development. The expenditure capitalised includes the cost of
materials, direct labour and attributable overheads and third party costs. Subsequent expenditure
on capitalised intangible assets is capitalised only when it increases the future economic benefits
embodied in the specific asset to which it relates. All other development expenditure is expensed
as incurred. Subsequent to initial recognition, the capitalised development expenditure is carried
at cost less any accumulated amortisation and any accumulated impairment losses (note 1(h)).Expenditure on internally generated goodwill and brands is recognised in the statement of
operations as an expense as incurred.AmortisationAmortisation is charged to the statement of operations on a straight-line basis over the estimated
useful lives of intangible assets, unless such lives are indefinite. Intangible assets are
amortised from the date they are available for use. The estimated useful lives are as follows:
 
    
    Patents and licences
    
    6-15 years
    
    Capitalised development costs
    
    15 years
    
    Other (including acquired customer and supplier lists)
    
    6-15 years
 Certain trade names acquired are deemed to have an indefinite useful life.Where amortisation is charged on assets with finite lives, this expense is taken to the statement
of operations through the selling, general and administrative expenses line.Useful lives are examined on an annual basis and adjustments, where applicable, are made on a
prospective basis.h)
    
    ImpairmentThe carrying amount of the Groups assets, other than inventories and deferred tax assets, are
reviewed at each balance sheet date to determine whether there is any indication of impairment. If
any such indication exists, the assets recoverable amount (being the greater of fair value less
costs to sell and value in use) is assessed at each balance sheet date.Fair value less costs to sell is defined as the amount obtainable from the sale of an asset or
cash-generating unit in an arms length transaction between knowledgeable and willing parties, less
the costs that would be incurred in disposal. Value in use is defined as the present value of the
future cash flows expected to be derived through the continued use of an asset or cash-generating
unit. In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset for which the future cash flow estimates have not yet
been adjusted. The estimates of future cash flows exclude cash inflows or outflows attributable to
financing activities and income tax. For an asset that does not generate largely independent cash
flows, the recoverable amount is determined by reference to the cash generating unit to which the
asset belongs.For goodwill, assets that have an indefinite useful life and intangible assets that are not yet
available for use, the recoverable amount is estimated at each balance sheet date at the cash
generating unit level. The goodwill and indefinite-lived assets were reviewed for impairment at
December 31, 2007, December 31, 2008 and December 2009. See note 12.An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating
unit exceeds its recoverable amount. Impairment losses are recognised in the statement of
operations.Impairment losses recognised in respect of cash-generating units are allocated first to reduce the
carrying amount of any goodwill allocated to cash-generating units and then to reduce the carrying
amount of other assets in the cash-generating units on a pro-rata basis.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)An impairment loss is reversed only to the extent that the assets carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised.An impairment loss in respect of goodwill is not reversed.Following recognition of any impairment loss (and on recognition of an impairment loss reversal),
the depreciation or amortisation charge applicable to the asset or cash generating unit is adjusted
prospectively with the objective of systematically allocating the revised carrying amount, net of
any residual value, over the remaining useful life.i)
    
    InventoriesInventories are stated at the lower of cost and net realisable value. Cost is based on the
first-in, first-out principle and includes all expenditure which has been incurred in bringing the
products to their present location and condition, and includes an appropriate allocation of
manufacturing overhead based on the normal level of operating capacity. Net realisable value is
the estimated selling price of inventory on hand in the ordinary course of business less all
further costs to completion and costs expected to be incurred in selling these products.The Group provides for inventory, based on estimates of the expected realisability of the Groups
inventory. The estimated realisability is evaluated on a case-by-case basis and any inventory that
is approaching its use-by date and for which no further re-processing can be performed is written
off. Any reversal of an inventory provision is recognised in the statement of operations in the
year in which the reversal occurs.j)
    
    Trade and other receivablesTrade and other receivables are stated at their amortised cost less impairment losses
incurred. Cost approximates fair value given the short dated nature of these assets.k)
    
    Trade and other payablesTrade and other payables are stated at cost. Cost approximates fair value given the short
dated nature of these liabilities.l)
    
    Cash and cash equivalentsCash and cash equivalents comprise cash balances and short-term deposits with a maturity of three
months or less. The Group has no short-term bank overdraft facilities. Where restrictions are
imposed by third parties, such as lending institutions, on cash balances held by the Group these
are treated as financial assets in the financial statements.m)
    
    Interest-bearing loans and borrowingsLoans and borrowings, including promissory notesUnder IFRS interest-bearing loans, borrowings and promissory notes are recognised initially at
fair value less attributable transaction costs. Subsequent to initial recognition,
interest-bearing borrowings are stated at amortised cost, with any difference between cost and
redemption value being recognised in the statement of operations over the period of the
borrowings on an effective interest basis.Convertible notesUnder IFRS convertible notes that can be converted into share capital at the option of the holder,
where the number of shares issued does not vary with changes in their fair value, are accounted for
as compound financial instruments. Transaction costs that relate to the issue of a compound
financial instrument are allocated to the liability and equity components in proportion to the
allocation of proceeds. The equity component of the convertible notes is calculated as the excess
of the issue proceeds over the present value of the future interest and principal payments,
discounted at the market rate of interest applicable to similar liabilities that do not have a
conversion option. The interest expense recognised in the statement of operations is calculated
using the effective interest rate method.n)
    
    Share-based paymentsFor equity-settled share-based payments (share options), the Group measures the services received
and the corresponding increase in equity at fair value at the measurement date (which is the
grant date) using a trinomial model. Given that the share options granted do not vest until the
completion of a specified period of service, the fair value, which is assessed at the grant date, is recognised on the basis that the services to
be rendered by employees as consideration for the granting of share options will be received over
the vesting period.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)The share options issued by the Group are not subject to market-based vesting conditions as
defined in IFRS 2, Share-based Payment. Non-market vesting conditions are not taken into account
when estimating the fair value of share options as at the grant date; such conditions are taken
into account through adjusting the number of equity instruments included in the measurement of
the transaction amount so that, ultimately, the amount recognised equates to the number of equity
instruments that actually vest. The expense in the statement of operations in relation to share
options represents the product of the total number of options anticipated to vest and the fair
value of those options; this amount is allocated to accounting periods on a straight-line basis
over the vesting period. Given that the performance conditions underlying the Groups share
options are non-market in nature, the cumulative charge to the statement of operations is only
reversed where the performance condition is not met or where an employee in receipt of share
options relinquishes service prior to completion of the expected vesting period. Share based
payments, to the extent they relate to direct labour involved in development activities, are
capitalised, see 1(g).The proceeds received net of any directly attributable transaction costs are credited to share
capital (nominal value) and share premium when the options are exercised. The Group does not
operate any cash-settled share-based payment schemes or share-based payment transactions with
cash alternatives as defined in IFRS 2.o)
    
    Government grantsGrants that compensate the Group for expenses incurred such as research and development,
employment and training are recognised as revenue or income in the statement of operations on a
systematic basis in the same periods in which the expenses are incurred. Grants that compensate
the Group for the cost of an asset are recognised in the statement of operations as other
operating income on a systematic basis over the useful life of the asset.p)
    
    Revenue recognitionGoods sold and services renderedRevenue from the sale of goods is recognised in the statement of operations when the significant
risks and rewards of ownership have been transferred to the buyer. Revenue from products is
generally recorded as of the date of shipment. Revenue is recognised when the Group has satisfied
all of its obligations to the customer. Revenue, including any amounts invoiced for shipping and
handling costs, represents the value of goods supplied to external customers, net of discounts
and excluding sales taxes.Revenue from services rendered is recognised in the statement of operations in proportion to the
stage of completion of the transaction at the balance sheet date.Revenue is recognised to the extent that it is probable that economic benefit will flow to the
Group, that the risks and rewards of ownership have passed to the buyer and the revenue can be
measured. No revenue is recognised if there is uncertainty regarding recovery of the
consideration due at the outset of the transaction or the possible return of goods.The Group leases instruments under operating and finance leases as part of its business. In cases
where the risks and rewards of ownership of the instrument pass to the customer, the fair value of
the instrument is recognised as revenue at the commencement of the lease and is matched by the
related cost of sale. In the case of operating leases of instruments which typically involve
commitments by the customer to pay a fee per test run on the instruments, revenue is recognised on
the basis of customer usage of the instruments. See also note 1(d).Other operating incomeRental income from sub-leasing premises under operating leases, where the risks and rewards of the
premises remain with the lessor, is recognised in the statement of operations as other operating
income on a straight-line basis over the term of the lease.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 q)
    
    Employee benefitsDefined contribution plansThe Group operates defined contribution schemes in various locations where its subsidiaries are
based. Contributions to the defined contribution schemes are recognised in the statement of
operations in the period in which the related service is received from the employee.Other long-term benefitsWhere employees participate in the Groups other long-term benefit schemes (such as permanent
health insurance schemes under which the scheme insures the employees), or where the Group
contributes to insurance schemes for employees, the Group pays an annual fee to a service provider,
and accordingly the Group expenses such payments as incurred.Termination benefitsTermination benefits are recognised as an expense when the Group is demonstrably committed, without
realistic possibility of withdrawal, to a formal detailed plan to either terminate employment
before normal retirement date, or to provide termination benefits as a result of an offer made to
encourage voluntary redundancy.r)
    
    Foreign currencyA majority of the revenue of the Group is generated in US dollars. The Groups management has
determined that the US dollar is the primary currency of the economic environment in which the
Company and its subsidiaries (with the exception of the Groups subsidiaries in Germany and Sweden)
principally operate. Thus the functional currency of the Company and its subsidiaries (other than
those subsidiaries in Germany and Sweden) is the US Dollar. The functional currency of the German
and Swedish subsidiaries is the Euro and the Swedish Kroner, respectively. The presentation
currency of the Company and Group is the US Dollar. Monetary assets and liabilities denominated in
foreign currencies are translated at the rates of exchange ruling at the balance sheet date. The
resulting gains and losses are included in the statement of operations. Non-monetary assets and
liabilities that are measured in terms of historical cost in a foreign currency are translated
using the exchange rate at the date of the transaction.Results and cash flows of subsidiary undertakings, which have a functional currency other than the
US Dollar, are translated into US Dollars at average exchange rates for the year, and the related
balance sheets have been translated at the rates of exchange ruling on the balance sheet date. Any
exchange differences arising from the translations are recognised in the currency translation
reserve via the statement of recognised income and expense.Where Euro or Sterling amounts have been referenced in this document, their corresponding US Dollar
equivalent has also been included and these equivalents have been calculated with reference to the
foreign exchange rates prevailing at December 31, 2009.s)
    
    Derivative financial instrumentsThe activities of the Group expose it primarily to changes in foreign exchange rates and interest
rates. The Group uses derivative financial instruments, when necessary, such as forward foreign
exchange contracts to hedge these exposures.The Group enters into forward contracts to sell US Dollars forward for Euro. The principal exchange
risk identified by the Group is with respect to fluctuations in the Euro as a substantial portion
of its expenses are denominated in Euro but its revenues are primarily denominated in US Dollars.
Trinity Biotech monitors its exposure to foreign currency movements and may use these forward
contracts as cash flow hedging instruments whose objective is to cover a portion of this Euro
expense.At the inception of a hedging transaction entailing the use of derivatives, the Group documents the
relationship between the hedged item and the hedging instrument together with its risk management
objective and the strategy underlying the proposed transaction. The Group also documents its
quarterly assessment of the effectiveness of the hedge in offsetting movements in the cash flows of
the hedged items.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 Derivative financial instruments are recognised at fair value. Where derivatives do not fulfil the
criteria for hedge accounting, they are classified as held-for-trading and changes in fair values
are reported in the statement of
operations. The fair value of forward exchange contracts is calculated by reference to current
forward exchange rates for contracts with similar maturity profiles and equates to the current
market price at the balance sheet date.The portion of the gain or loss on a hedging instrument that is deemed to be an effective cash flow
hedge is recognised directly in the hedging reserve in equity and the ineffective portion is
recognised in the statement of operations. As the forward contracts are exercised the net
cumulative gain or loss recognised in the hedging reserve is transferred to the statement of
operations and reflected in the same line as the hedged item.t)
    
    Segment reportingOperating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision-maker. The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating segments, has been identified as
the Board of Directors.u)
    
    Tax (current and deferred)Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is
recognised in the statement of operations except to the extent that it relates to items recognised
directly in equity, in which case it is recognised in equity.Current tax represents the expected tax payable (or recoverable) on the taxable profit for the year
using tax rates enacted or substantively enacted at the balance sheet date and taking into account
any adjustments stemming from prior years.Deferred tax is provided on the basis of the balance sheet liability method on all temporary
differences at the balance sheet date which is defined as the difference between the tax bases of
assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets
and liabilities are not subject to discounting and are measured at the tax rates that are
anticipated to apply in the period in which the asset is realised or the liability is settled based
on tax rates and tax laws that have been enacted or substantively enacted at the balance sheet
date. The amount of deferred tax provided is based on the expected manner of realisation or
settlement of the carrying amount of assets and liabilities.Deferred tax assets and liabilities are recognised for all temporary differences (that is,
differences between the carrying amount of the asset or liability and its tax base) with the
exception of the following:
 i.
    
    Where the deferred tax liability arises from goodwill not deductible for tax purposes
or the initial recognition of an asset or a liability in a transaction that is not a
business combination and affects neither the accounting profit nor the taxable profit or
loss at the time of the transaction; andii.
    
    Where, in respect of temporary differences associated with investments in subsidiary
undertakings, the timing of the reversal of the temporary difference is subject to control
and it is probable that the temporary difference will not reverse in the foreseeable
future.
 Where goodwill is tax deductible, a deferred tax liability is not recognised on initial recognition
of goodwill. It is recognised subsequently for the taxable temporary difference which arises when
the goodwill is amortised for tax with no corresponding adjustment to the carrying value of the
goodwill.The carrying amounts of deferred tax assets are subject to review at each balance sheet date and
are derecognised to the extent that future taxable profits are considered to be inadequate to allow
all or part of any deferred tax asset to be utilised.v)
    
    ProvisionsA provision is recognised in the balance sheet when the Group has a present legal or constructive
obligation as a result of a past event, and it is probable that an outflow of economic benefits
will be required to settle the obligation.w)
    
    Cost of salesCost of sales comprises product cost including manufacturing and payroll costs, quality control,
shipping, handling, and packaging costs and the cost of services provided.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 x)
    
    Finance income and costsFinancing expenses comprise costs payable on leases, loans and borrowings including promissory
notes. Interest payable on loans and borrowings, promissory notes and convertible notes is
calculated using the effective interest rate method. Interest payable on finance leases is
allocated to each period during the lease term so as to produce a constant periodic rate of
interest on the remaining balance of the liability. Financing expenses also includes the financing
element of long term liabilities which have been discounted.Finance income comprises interest income on deposits and is recognised in the statement of
operations as it accrues, using the effective interest method.y)
    
    Warrant reserveThe Group calculates the fair value of warrants at the date of issue taking the amount directly to
equity. The fair value is calculated using a recognised valuation methodology for the valuation of
financial instruments (that is, the trinomial model). The fair value which is assessed at the
grant date is calculated on the basis of the contractual term of the warrants.z)
    
    New IFRS Standards and Interpretations not appliedThe IASB and IFRIC have issued additional standards and interpretations which are effective for
periods starting on or after January 1, 2009, some of which have not yet been adopted by the EU.
The following standards and interpretations have yet to be adopted by the Group:
 International Financial Reporting Standards (IFRS/IAS)
    
    Effective dateIFRS 1
    
    First-time Adoption of
International Financial
Reporting Standards 
Additional Exemptions for
First-time Adopters
(Amendments)
    
    January 1, 2010 (not yet
adopted by the EU)IFRS 2
    
    Group Cash-settled Share-based
Payment Arrangements
(Amendments)
    
    January 1, 2010 (not yet
adopted by the EU)IFRS 3
    
    Business Combinations (Revised)
    
    July 1, 2009 (adopted by the EU)IAS 27
    
    Consolidated and Separate
Financial Statements
(Amendment)
    
    July 1, 2009 (adopted by the EU)IAS 39
    
    Financial Instruments:
Recognition and Measurement 
Eligible hedged items
(Amendment)
    
    July 1, 2009 (adopted by the EU)International Financial Reporting Interpretations Committee (IFRIC)IFRIC 15
    
    Agreements for the Construction of Real Estate
    
    January 1, 2009 (not yet
adopted by the EU)IFRIC 17
    
    Distributions on Non-cash Assets to Owners
    
    July 1, 2009 (adopted by the EU)IFRIC 18
    
    Transfers of Assets from Customers
    
    July 1, 2009 (adopted by the EU)
 The Group does not anticipate that the adoption of these standards and interpretations will have a
material effect on its financial statements on initial adoption.
 2.
    
    SEGMENT INFORMATION
 Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision-maker. The chief operating decision-maker, who is responsible for
allocating resources and assessing the performance of the operating segments, has been identified
as the Board of Directors.Management has determined the operating segments based on the reports reviewed by the Board of
Directors, which are used to make strategic decisions. The Board considers the business from a
geographic perspective based on the Groups management and internal reporting structure. Sales of
product between companies in the Group are made on commercial terms which reflect the nature of the
relationship between the relevant companies. Segment results, assets and liabilities include items
directly attributable to a segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise interest-bearing loans, borrowings and expenses and corporate expenses.
Segment capital expenditure is the total cost during the year to acquire segment plant, property
and equipment and intangible assets that are expected to be used for more than one period, whether
acquired on acquisition of a business combination or through acquisitions as part of the current
operations.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 2.
    
    SEGMENT INFORMATION (CONTINUED)The Group comprises two main geographical segments (i) the Americas and (ii) Rest of World. The
Groups geographical segments are determined by the location of the Groups assets and operations.The Group has also presented a geographical analysis of the segmental data for Ireland as is
consistent with the information used by the Board of Directors.The reportable operating segments derive their revenue primarily from one source (i.e. the market
for diagnostic tests for a range of diseases and other medical conditions). In determining the
nature of its segmentation, the Group has considered the nature of the products, their risks and
rewards, the nature of the production base, the customer base and the nature of the regulatory
environment. The Group acquires, manufactures and markets a range of diagnostic products. The
Groups products are sold to a similar customer base and the main body whose regulation the Groups
products must comply with is the Food and Drug Administration (FDA) in the US.The following presents revenue and profit information and certain asset and liability information
regarding the Groups geographical segments.a)
    
    The distribution of revenue by geographical area based on location of assets was as
follows:Revenue
 Americas
    
    
    Rest of WorldIreland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2009
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Revenue from external customers
    
    
    46,286
    
    
    
    65,529
    
    
    
    14,092
    
    
    
    
    
    
    
    125,907Inter-segment revenue
    
    
    25,527
    
    
    
    20,843
    
    
    
    9,588
    
    
    
    (55,958
    )
    
    
    Total revenue
    
    
    71,813
    
    
    
    86,372
    
    
    
    23,680
    
    
    
    (55,958
    )
    
    
    125,907
 Americas
    
    
    Rest of WorldIreland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2008
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Revenue from external customers
    
    
    48,615
    
    
    
    72,676
    
    
    
    18,848
    
    
    
    
    
    
    
    140,139Inter-segment revenue
    
    
    28,345
    
    
    
    22,248
    
    
    
    12,435
    
    
    
    (63,028
    )
    
    
    Total revenue
    
    
    76,960
    
    
    
    94,924
    
    
    
    31,283
    
    
    
    (63,028
    )
    
    
    140,139
 Americas
    
    
    Rest of WorldIreland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2007
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Revenue from external customers
    
    
    37,095
    
    
    
    64,210
    
    
    
    42,312
    
    
    
    
    
    
    
    143,617Inter-segment revenue
    
    
    24,815
    
    
    
    27,196
    
    
    
    10,134
    
    
    
    (62,145
    )
    
    
    Total revenue
    
    
    61,910
    
    
    
    91,406
    
    
    
    52,446
    
    
    
    (62,145
    )
    
    
    143,617
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 2.
    
    SEGMENT INFORMATION (CONTINUED)b)
    
    The distribution of revenue by customers geographical area was as follows:
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000
    
    
    US$000RevenueAmericas
    
    
    68,130
    
    
    
    69,915
    
    
    
    68,481Europe (including Ireland) *
    
    
    32,389
    
    
    
    43,481
    
    
    
    43,631Asia / Africa
    
    
    25,388
    
    
    
    26,743
    
    
    
    31,505125,907
    
    
    
    140,139
    
    
    
    143,617
 *
    
    Revenue for customers in Ireland is not disclosed separately due to the immateriality of these
revenues. c)
    
    The distribution of revenue by major product group was as follows:
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000
    
    
    US$000RevenueClinical laboratory
    
    
    107,778
    
    
    
    121,143
    
    
    
    119,113Point of care
    
    
    18,129
    
    
    
    18,996
    
    
    
    24,504125,907
    
    
    
    140,139
    
    
    
    143,617
 d)
    
    The distribution of segment results by geographical area was as follows:
 Americas
    
    
    Rest of WorldIreland
    
    
    Other
    
    
    TotalYear ended December 31, 2009
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Result
    
    
    9,073
    
    
    
    7,004
    
    
    
    (1,211
    )
    
    
    14,866Unallocated expenses *
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (767
    )Operating profit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,099Net financing costs (note 4)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,184
    )Profit before tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,915Income tax expense (note 9)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,091
    )Profit for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,824
 Americas
    
    
    Rest of WorldIreland
    
    
    Other
    
    
    TotalYear ended December 31, 2008
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Result before exceptional expenses
    
    
    807
    
    
    
    10,848
    
    
    
    (2,391
    )
    
    
    9,264Impairment expense (note 3)
    
    
    (17,645
    )
    
    
    (66,152
    )
    
    
    (1,996
    )
    
    
    (85,793
    )Restructuring expenses (note 3)
    
    
    (185
    )
    
    
    (1,904
    )
    
    
    
    
    
    
    (2,089
    )Result after exceptional expenses
    
    
    (17,023
    )
    
    
    (57,208
    )
    
    
    (4,387
    )
    
    
    (78,618
    )Unallocated expenses *
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (957
    )Operating loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (79,575
    )Net financing costs (note 4)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,095
    )Loss before tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (81,670
    )Income tax credit (note 9)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,892Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (77,778
    )
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 2.
    
    SEGMENT INFORMATION (CONTINUED)
 Americas
    
    
    Rest of WorldIreland
    
    
    Other
    
    
    TotalYear ended December 31, 2007
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Result before goodwill
impairment and restructuring
expenses
    
    
    15
    
    
    
    10,868
    
    
    
    447
    
    
    
    11,330Goodwill impairment (note 3)
    
    
    
    
    
    
    (19,156
    )
    
    
    
    
    
    
    (19,156
    )Restructuring expenses (note 3)
    
    
    (6,215
    )
    
    
    (11,961
    )
    
    
    (2,615
    )
    
    
    (20,791
    )Result after goodwill
impairment and restructuring
    
    
    (6,200
    )
    
    
    (20,249
    )
    
    
    (2,168
    )
    
    
    (28,617
    )Unallocated expenses *
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (755
    )Operating loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (29,372
    )Net financing costs (note 4)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,691
    )Loss before tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (32,063
    )Income tax expense (note 9)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,309
    )Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (35,372
    )
 *
    
    Unallocated expenses represent head office general and administration costs of the Group which
cannot be allocated to the results of any specific geographical area. e)
    
    The distribution of segment assets and segment liabilities by geographical area was as
follows:
 Americas
    
    
    Rest of WorldIreland
    
    
    Other
    
    
    TotalAs at December 31, 2009
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Assets and liabilitiesSegment assets
    
    
    37,355
    
    
    
    65,693
    
    
    
    17,289
    
    
    
    120,337Unallocated assets:Income tax assets (current and deferred)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,030Cash and cash equivalents
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,078Total assets as reported in the Group balance sheet
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    132,445Segment liabilities
    
    
    2,695
    
    
    
    2,567
    
    
    
    7,749
    
    
    
    13,011Unallocated liabilities:Income tax liabilities (current and deferred)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,234Interest-bearing loans and borrowings (current and
non-current)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    31,856Total liabilities as reported in the Group balance
sheet
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    53,101
  81




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 2.
    
    SEGMENT INFORMATION (CONTINUED)
 Americas
    
    
    Rest of WorldIreland
    
    
    Other
    
    
    TotalAs at December 31, 2008
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Assets and liabilitiesSegment assets
    
    
    58,248
    
    
    
    128,907
    
    
    
    19,630
    
    
    
    206,785Impairment (note 3)
    
    
    (17,645
    )
    
    
    (66,152
    )
    
    
    (1,996
    )
    
    
    (85,793
    )Segment assets after goodwill impairment and
restructuring
    
    
    40,603
    
    
    
    62,755
    
    
    
    17,634
    
    
    
    120,992Unallocated assets:Income tax assets (current and deferred)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,333Cash and cash equivalents
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,184Total assets as reported in the Group
balance sheet
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    129,509Segment liabilities before restructuring
    
    
    6,909
    
    
    
    10,451
    
    
    
    4,601
    
    
    
    21,961Impact of restructuring (note 21)
    
    
    6
    
    
    
    1,138
    
    
    
    
    
    
    
    1,144Segment liabilities after restructuring
    
    
    6,915
    
    
    
    11,589
    
    
    
    4,601
    
    
    
    23,105Unallocated liabilities:Income tax liabilities (current and deferred)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,378Interest-bearing loans and borrowings
(current and non-current)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    36,121Total liabilities as reported in the Group
balance sheet
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    63,604
 f)
    
    The distribution of long-lived assets, which are property, plant and equipment, goodwill and
intangible assets and other non-current assets (excluding deferred tax assets), by
geographical area was as follows:
 December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000Rest of World  Ireland
    
    
    38,756
    
    
    
    33,511Rest of World  Other
    
    
    6,815
    
    
    
    7,174Americas
    
    
    12,637
    
    
    
    10,57258,208
    
    
    
    51,257
 g)
    
    The distribution of depreciation and amortisation by geographical area was as follows:
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000
    
    
    US$000Depreciation:Rest of World  Ireland
    
    
    325
    
    
    
    1,799
    
    
    
    1,450Rest of World  Other
    
    
    900
    
    
    
    1,149
    
    
    
    1,537Americas
    
    
    561
    
    
    
    1,477
    
    
    
    1,3541,786
    
    
    
    4,425
    
    
    
    4,341Amortisation:Rest of World  Ireland
    
    
    1,712
    
    
    
    3,113
    
    
    
    2,971Rest of World  Other
    
    
    169
    
    
    
    206
    
    
    
    151Americas
    
    
    78
    
    
    
    297
    
    
    
    2961,959
    
    
    
    3,616
    
    
    
    3,418
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 2.
    
    SEGMENT INFORMATION (CONTINUED)h)
    
    The distribution of share-based payment expense by geographical area was as follows:
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000
    
    
    US$000Rest of World  Ireland
    
    
    470
    
    
    
    996
    
    
    
    1,146Rest of World  Other
    
    
    17
    
    
    
    38
    
    
    
    37Americas
    
    
    34
    
    
    
    132
    
    
    
    220521
    
    
    
    1,166
    
    
    
    1,403
 See note 19 for further information on share-based payments.i)
    
    The distribution of restructuring expenses in 2008 and 2007 (see note 3) by geographical area
was as follows:
 December 31, 2008US$000Impairment:Rest of World  Ireland
    
    
    66,152Rest of World  Other
    
    
    1,996Americas
    
    
    17,64585,793Restructuring expenses:Rest of World  Ireland
    
    
    1,904Rest of World  Other
    
    
    Americas
    
    
    1852,089
 Asset impairments arose as a result of the annual impairment review which was performed on 31
December 2008 (see note 3).The Board of Directors announced a restructuring of the business in December 2008, which resulted
in certain one-off expenditure being incurred. These termination payments and other restructuring
costs resulted in an after tax charge of US$1.9 million (see note 3).
 December 31, 2007US$000Impairment:Rest of World  Ireland
    
    
    19,156Rest of World  Other
    
    
    Americas
    
    
    19,156Restructuring expenses:Rest of World  Ireland
    
    
    11,961Rest of World  Other
    
    
    6,215Americas
    
    
    2,61520,791
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 2.
    
    SEGMENT INFORMATION (CONTINUED)In 2007, the total restructuring expenses above of US$20,791,000 included an inventory write off
of US$11,772,000. As part of the restructuring plan (see note 3), Trinity Biotech undertook to
reduce the number of products and instruments within the two key product lines of Coagulation and
Infectious Diseases. As a result, the Group has recognised US$11,772,000 for inventory written off
relating to those Coagulation and Infectious Diseases products and instruments being rationalised
for the year ended December 31, 2007. The write off was included as part of the total
restructuring expenses in cost of sales in the 2007 statement of operations. The distribution of
the inventory write off by geographical area was as follows:
 December 31, 2007US$000Inventory write offRest of World  Ireland
    
    
    4,146Rest of World  Other
    
    
    2,279Americas
    
    
    5,34711,772
 j)
    
    The distribution of interest income and interest expense by geographical area was as follows:
 Americas
    
    
    Rest of WorldInterest Income
    
    
    
    
    Ireland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2009
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Interest Income Earned
    
    
    
    
    
    
    6
    
    
    
    2
    
    
    
    
    
    
    
    8Inter-segment Interest Income
    
    
    
    
    
    
    1,157
    
    
    
    
    
    
    
    (1,157
    )
    
    
    Total revenue
    
    
    
    
    
    
    1,163
    
    
    
    2
    
    
    
    (1,157
    )
    
    
    8
 Americas
    
    
    Rest of WorldInterest Expense
    
    
    
    
    Ireland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2009
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Interest Income Expense
    
    
    11
    
    
    
    1,178
    
    
    
    3
    
    
    
    
    
    
    
    1,192Inter-segment Interest Expense
    
    
    184
    
    
    
    973
    
    
    
    
    
    
    
    (1,157
    )
    
    
    Total revenue
    
    
    195
    
    
    
    2,151
    
    
    
    3
    
    
    
    (1,157
    )
    
    
    1,192
 Americas
    
    
    Rest of WorldInterest Income
    
    
    
    
    Ireland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2008
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Interest Income Earned
    
    
    1
    
    
    
    62
    
    
    
    2
    
    
    
    
    
    
    
    65Inter-segment Interest Income
    
    
    
    
    
    
    2,038
    
    
    
    
    
    
    
    (2,038
    )
    
    
    Total revenue
    
    
    1
    
    
    
    2,100
    
    
    
    2
    
    
    
    (2,038
    )
    
    
    65
 Americas
    
    
    Rest of WorldInterest Expense
    
    
    
    
    Ireland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2008
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Interest Income Expense
    
    
    5
    
    
    
    2,147
    
    
    
    8
    
    
    
    
    
    
    
    2,160Inter-segment Interest Expense
    
    
    330
    
    
    
    1,708
    
    
    
    
    
    
    
    (2,038
    )
    
    
    Total revenue
    
    
    335
    
    
    
    3,855
    
    
    
    8
    
    
    
    (2,038
    )
    
    
    2,160
  84




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 2.
    
    SEGMENT INFORMATION (CONTINUED)
 The distribution of interest expense by geographical area for the year ended December 31, 2007
was as follows:
 Americas
    
    
    Rest of WorldInterest Expense
    
    
    
    
    Ireland
    
    
    Other
    
    
    TotalYear ended December 31, 2007
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Interest Expense
    
    
    538
    
    
    
    2,595
    
    
    
    15
    
    
    
    3,148Total
    
    
    538
    
    
    
    2,595
    
    
    
    15
    
    
    
    3,148
 k)
    
    The distribution of taxation (expense)/credit by geographical area was as follows:
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000
    
    
    US$000Rest of World  Ireland
    
    
    (1,023
    )
    
    
    3,716
    
    
    
    531Rest of World  Other
    
    
    200
    
    
    
    9
    
    
    
    (662
    )Americas
    
    
    (268
    )
    
    
    167
    
    
    
    (3,178
    )(1,091
    )
    
    
    3,892
    
    
    
    (3,309
    )
 l)
    
    During 2009, 2008 and 2007 there were no customers generating 10% or more of total
revenues.
 m)
    
    The distribution of capital expenditure, including expenditure on non-current assets in
business combinations, by geographical area was as follows:
 December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000Rest of World  Ireland
    
    
    6,816
    
    
    
    8,101Rest of World  Other
    
    
    670
    
    
    
    1,239Americas
    
    
    3,071
    
    
    
    3,50710,557
    
    
    
    12,847
 3.
    
    IMPAIRMENT CHARGES AND RESTRUCTURING EXPENSES
 In the year ended December 31, 2008, asset impairment charges totalling US$85,793,000 were
recognised in the statement of operations. No impairment charge was recognised in the statement of
operations for the year ended December 31, 2009.In accordance with IAS 36, Impairment of Assets, the Group carries out an annual impairment review
of the asset valuations. The Group carries out its impairment review on 31 December each year. In
determining whether a potential asset impairment exists, the Group considered a range of internal
and external factors. One such factor was the relationship between the Groups market valuation
and the book value of its net assets. Trinity Biotechs market capitalization at the end of 2008
was significantly below the book value of its net assets. In such circumstances given the
accounting standard guidance, the Group decided to recognize at December 31, 2008 a non-cash
impairment charge of US$81.3 million after tax. The impairment was taken against goodwill and
other intangible assets, property, plant and equipment and prepayments (see notes 11, 12 and 16).
The tax impact of the impairment charges is described in note 9.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 3.
    
    IMPAIRMENT CHARGES AND RESTRUCTURING EXPENSES (CONTINUED)The Board of Directors announced a restructuring of the business in December 2008. The
restructuring aimed to reduce costs through improved operational efficiency within the Group. As a
result of the restructuring, there was a reduction in the size of the workforce, mainly affecting
the sales, marketing and administration functions. Termination payments and other restructuring
costs resulted in an after tax charge of US$1.9 million in the current year. Included in this
amount is US$1.5 million relating to the resignation of Brendan Farrell as Chief Executive Officer
in October 2008.The impact of the above items on the statement of operations for the year ended December 31, 2008
was as follows:
 Impairment
    
    
    Restructuring
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000Selling, general & administration expensesImpairment of PP&E (note 11)
    
    
    
    
    
    
    13,095
    
    
    
    
    
    
    
    13,095Impairment of goodwill and other
intangible assets (note 12)
    
    
    
    
    
    
    71,684
    
    
    
    
    
    
    
    71,684Impairment of prepayments (note 16)
    
    
    
    
    
    
    1,014
    
    
    
    
    
    
    
    1,014Employee termination payments
    
    
    (a
    )
    
    
    
    
    
    
    589
    
    
    
    589Directors compensation for loss of
office and share option
expense
    
    
    (b
    )
    
    
    
    
    
    
    1,465
    
    
    
    1,465Other restructuring expenses
    
    
    
    
    
    
    
    
    
    
    35
    
    
    
    35Total impairment loss and restructuring
expenses before tax
    
    
    
    
    
    
    85,793
    
    
    
    2,089
    
    
    
    87,882Income tax impact of impairment loss and
restructuring expenses (note 9)
    
    
    
    
    
    
    (4,536
    )
    
    
    (215
    )
    
    
    (4,751
    )Total impairment loss and restructuring
expenses after tax
    
    
    
    
    
    
    81,257
    
    
    
    1,874
    
    
    
    83,131
 (a)
    
    Under the restructuring plan announced in December 2008, the Groups workforce was reduced by
about 10%. The redundancies occurred in the Groups US, Irish and German operations. The total
redundancy costs amounted to US$589,000, of which an amount of US$156,000 is accrued at
December 31, 2008.
 (b)
    
    An expense of US$1,465,000 was recorded in 2008 in relation to the resignation of the former
Chief Executive Officer, Brendan Farrell. Mr. Farrell left the company in October 2008. The
expense comprises termination payments of US$1,283,000, of which US$988,000 is included in
accrued restructuring expenses at December 31, 2008, and an accelerated share option expense
of US$182,000.
 In December 2007, the Board of Directors announced a restructuring of the business. The impact of
this restructuring resulted in an after tax charge to the statement of operations of US$19,207,000
for the year ended December 31, 2007. In addition, the Group recognised an impairment loss of
US$19,156,000 against goodwill (see note 12).
 The restructuring included the following elements:
 
    
    the rationalisation of the Coagulation and Infectious Diseases reagent and
instrumentation product lines;
    
    the reorganisation of the US sales force;
    
    the closure of the Groups operation in Sweden;
    
    the streamlining of the Groups development activities and,
    
    a redundancy programme to reduce headcount across the Group.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 
 3.
    
    IMPAIRMENT CHARGES AND RESTRUCTURING EXPENSES (CONTINUED)
 The impact of the above items on the statement of operations for the year ended December 31, 2007
was as follows:
 ImpairmentLoss
    
    
    Restructuring
    
    
    TotalYear ended 31 December 2007
    
    
    
    
    
    US$000
    
    

US$000
    
    

US$000Cost of salesInventory provision
    
    
    (a)
    (c)
    
    
    
    
    
    
    11,772
    
    
    
    11,772Termination payments
    
    
    (c)
    (d)
    
    
    
    
    
    
    953
    
    
    
    953
    
    
    
    12,725
    
    
    
    12,725Research & developmentWrite-off of capitalised development
and license costs
    
    
    (b)
    
    
    
    
    
    
    
    6,667
    
    
    
    6,667Termination payments
    
    
    (c)
    (d)
    
    
    
    
    
    
    240
    
    
    
    240
    
    
    
    6,907
    
    
    
    6,907Selling, general & administration expensesImpairment of goodwill (note 12)
    
    
    
    
    
    
    19,156
    
    
    
    
    
    
    
    19,156Termination payments
    
    
    (c)
    (d)
    
    
    
    
    
    
    842
    
    
    
    842Lease obligation provision
    
    
    (c)
    
    
    
    
    
    
    
    116
    
    
    
    116Other
    
    
    
    
    
    
    
    
    
    
    201
    
    
    
    20119,156
    
    
    
    1,159
    
    
    
    20,315Total inventory write off, restructuring
expenses and goodwill impairment before
tax
    
    
    
    
    
    
    19,156
    
    
    
    20,791
    
    
    
    39,947Income tax impact of inventory write off,
restructuring expenses and goodwill
impairment (note 9)
    
    
    
    
    
    
    
    
    
    
    (1,584
    )
    
    
    (1,584
    )Total inventory write off, restructuring
expenses and goodwill impairment after
tax
    
    
    
    
    
    
    19,156
    
    
    
    19,207
    
    
    
    38,363
 The non cash element of the restructuring expenses amounted to US$18,573,000 and the goodwill
impairment of US$19,156,000 also had no cash impact.
 (a)
    
    Under the 2007 restructuring plan, Trinity Biotech undertook to reduce the number of
products and instruments within the two key product lines of Coagulation and Infectious
Diseases. The purpose of the rationalisation was to reduce complexity in the business, to
improve selling and operating efficiencies and to eliminate low revenue generating products.
As a result, the Group recognised US$11,772,000, including US$147,000 in respect of the
closure of the Swedish operation (see note (c)), for inventory written off relating to those
Coagulation and Infectious Diseases products and instruments being rationalised for the year
ended December 31, 2007.
 (b)
    
    The Group decided to terminate or suspend a number of product development projects, which
resulted in a write-off of capitalised development and license costs for the year ended
December 31, 2007 of US$6,667,000.
 Under IFRS the Group writes off research and development expenditure as incurred, with the
exception of expenditure on projects whose outcome has been assessed with reasonable
certainty as to technical feasibility, commercial viability and recovery of costs through
future revenues. Such expenditure is capitalised at cost within intangible assets as
development costs. Factors which impact our judgement to capitalise certain research and
development expenditure include the degree of regulatory approval for products and the
results of any market research to determine the likely future
commercial success of products being developed. We review these factors each year to determine whether our
previous estimates as to feasibility, viability and recovery should be changed.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 
 3.
    
    IMPAIRMENT CHARGES AND RESTRUCTURING EXPENSES (CONTINUED)
 In December 2007, the Group announced its decision to focus on a smaller number of R&D
projects, with a particular focus on projects which will make the greatest contribution to
the strategic growth and development of the Group. Consequently, it was decided to
terminate or suspend a number of projects. As a result, US$5,134,000 of development costs
were written off for the year ended December 31, 2007. The write off of capitalised
developments costs in 2007 related to a number of specific projects, the two most
significant being the HIV over-the-counter (OTC) product and the development of the HIV
Western Blot confirmatory test which accounts for US$2,772,000 of the total amount of
capitalised development costs written off of US$5,134,000. The decision to suspend the HIV
OTC project was based on an assessment of expected market size for this product. The
Groups market assessment, carried out in 2007, indicated that the market opportunity for
this product was significantly less than was originally envisaged. The Groups decision to
suspend the development of its HIV Western Blot confirmatory test was also due to changes
in the marketplace. The remaining development projects, which account for US$2,631,000 of
the total capitalised development costs being written off in 2007 resulted from the
strategic decision made by the Group in 2007 to focus on a smaller number of R&D projects.
 Based on the decision to suspend a number of projects, US$439,000 was also written off for
license costs which were capitalised in prior years. These license costs related to
projects which have been written off in the year ended December 31, 2007.
 A further US$1,094,000 was written off technology intangible assets acquired from
bioMerieux. This represented the portion of such assets which related to instruments and
reagents which were being culled as part of the 2007 restructuring (see note 12).
 (c)
    
    As part of the restructuring announced in December 2007, Trinity Biotech decided to close
its manufacturing facility located in Umea, Sweden. This facility manufactured a portion of
the Groups Coagulation products and was acquired as part of the Biopool AB acquisition in
2001. The manufacture of these products was transferred to the Groups Irish and US
facilities during 2008. As part of the closure of this facility, the Group recognised an
inventory write off of US$147,000 and a write down of property, plant and equipment of
US$42,000. A total of US$448,000 was accrued at December 31, 2007 which consisted of
termination payments of US$332,000, and lease obligations of US$116,000.
 (d)
    
    The reduction in the number of products, the more focused R&D approach and the closure of
the Swedish operation enabled the Group to reduce its workforce and consequently total
redundancy costs of US$1,470,000 were accrued for at December 31, 2007.
 4.
    
    FINANCIAL INCOME AND EXPENSES
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007Note
    
    
    US$000
    
    
    US$000
    
    
    US$000Financial income:Interest income
    
    
    
    
    
    
    8
    
    
    
    65
    
    
    
    457Financial expense:Finance lease interest
    
    
    
    
    
    
    (135
    )
    
    
    (123
    )
    
    
    (65
    )Interest payable on
interest bearing
loans and borrowings
    
    
    20
    
    
    
    (1,053
    )
    
    
    (1,912
    )
    
    
    (2,834
    )Other interest expense
    
    
    
    
    
    
    (4
    )
    
    
    (125
    )
    
    
    (249
    )(1,192
    )
    
    
    (2,160
    )
    
    
    (3,148
    )Net Financing Costs
    
    
    
    
    
    
    (1,184
    )
    
    
    (2,095
    )
    
    
    (2,691
    )
  88




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 4.
    
    FINANCIAL INCOME AND EXPENSES (CONTINUED)
 Other interest expense recognised in 2008 and 2007 mainly comprises an interest expense arising
from the discounting of the deferred consideration payable to bioMerieux, resulting from the
acquisition of the coagulation business during 2006, to reflect the present value of this
additional consideration.
 5.
    
    OTHER OPERATING INCOME
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000
    
    
    US$000Rental income from premises
    
    
    222
    
    
    
    237
    
    
    
    233Employment / training grants
    
    
    215
    
    
    
    936
    
    
    
    180437
    
    
    
    1,173
    
    
    
    413
 6.
    
    PROFIT/(LOSS) BEFORE TAX
 The following amounts were charged / (credited) to the statement of operations:
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000
    
    
    US$000Directors emoluments (including
non- executive directors):Remuneration
    
    
    1,271
    
    
    
    1,617
    
    
    
    2,370Pension
    
    
    105
    
    
    
    241
    
    
    
    147Share based payments
    
    
    422
    
    
    
    776
    
    
    
    920Compensation for loss of office
    
    
    
    
    
    
    1,283
    
    
    
    Other
    
    
    
    
    
    
    44
    
    
    
    Auditors remunerationAudit fees
    
    
    764
    
    
    
    809
    
    
    
    1,544Non audit fees
    
    
    21
    
    
    
    31
    
    
    
    77Depreciation  leased assets
    
    
    87
    
    
    
    372
    
    
    
    260Depreciation  owned assets
    
    
    1,699
    
    
    
    4,053
    
    
    
    4,081Amortisation
    
    
    1,959
    
    
    
    3,616
    
    
    
    3,418Loss/(profit) on the disposal of
property, plant and equipment
    
    
    66
    
    
    
    (682
    )
    
    
    16Net foreign exchange differences
    
    
    32
    
    
    
    (224
    )
    
    
    68Operating lease rentals:Plant and machinery
    
    
    15
    
    
    
    31
    
    
    
    38Land and buildings
    
    
    3,727
    
    
    
    4,421
    
    
    
    3,798Other equipment
    
    
    339
    
    
    
    437
    
    
    
    407
 7.
    
    PERSONNEL EXPENSES
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000
    
    
    US$000Wages and salaries
    
    
    39,967
    
    
    
    48,755
    
    
    
    48,385Social welfare costs
    
    
    4,237
    
    
    
    5,338
    
    
    
    5,118Pension costs
    
    
    1,350
    
    
    
    1,442
    
    
    
    1,388Share-based payments
    
    
    521
    
    
    
    1,166
    
    
    
    1,40346,075
    
    
    
    56,701
    
    
    
    56,294
  89




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 7.
    
    PERSONNEL EXPENSES (CONTINUED)
 Personnel expenses are shown net of capitalisations. Total personnel expenses (wages and salaries,
social welfare costs and pension costs), inclusive of amounts capitalised, for the year ended
December 31, 2009 amounted to US$50,459,000 (2008: US$61,644,000) (2007: US$60,502,000). Total
share based payments, inclusive of amounts capitalised in the balance sheet, amounted to US$599,000
for the year ended December 31, 2009 (2008: US$1,193,000) (2007: US$1,482,000). See note 19.
 Included in personnel expenses for the year ended December 31, 2008 is US$589,000 which relates to
termination payments resulting from the restructuring announced in December 2008 (see note 3).
 The average number of persons employed by the Group in the financial year was 676 (2008: 757)
(2007: 802) and is analysed into the following categories:
 December 31,
    
    
    December 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2007Research and development
    
    
    61
    
    
    
    57
    
    
    
    51Administration and sales
    
    
    189
    
    
    
    261
    
    
    
    268Manufacturing and quality
    
    
    426
    
    
    
    439
    
    
    
    483676
    
    
    
    757
    
    
    
    802
 8.
    
    PENSION SCHEMES
 The Group operates defined contribution pension schemes for certain of its full time employees. The
benefits under these schemes are financed by both Group and employee contributions. Total
contributions made by the Group in the financial year and charged against income amounted to
US$1,350,000 (2008: US$1,442,000) (2007: US$1,388,000) (note 7). The pension accrual for the Group
at December 31, 2009 was US$309,000 (2008: US$332,000), (2007: US$Nil).
  90




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 
 9.
    
    INCOME TAX EXPENSE / (CREDIT)
 a.
    
    The charge for tax based on the profit / (loss) comprises:
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000
    
    
    US$000Current tax expenseCorporation tax at 12.5%
    
    
    75
    
    
    
    58
    
    
    
    60Overseas tax (a)
    
    
    46
    
    
    
    35
    
    
    
    114Adjustment in respect of prior years (b)
    
    
    (120
    )
    
    
    (33
    )
    
    
    (67
    )Total current tax expense
    
    
    1
    
    
    
    60
    
    
    
    107Deferred tax expense / (credit)(c)Origination and reversal of temporary
differences (see note 13)
    
    
    1,354
    
    
    
    (3,858
    )
    
    
    (1,042
    )Origination and reversal of net
operating losses (see note 13)
    
    
    (264
    )
    
    
    (94
    )
    
    
    4,244Total deferred tax expense / (credit)
    
    
    1,090
    
    
    
    (3,952
    )
    
    
    3,202Total income tax charge / (credit) in
income statement (d)
    
    
    1,091
    
    
    
    (3,892
    )
    
    
    3,309
 (a)
    
    The overseas tax charge in 2009, 2008 and 2007 relates primarily to US State Taxes.
 (b)
    
    The credit in 2009 arises in respect of the finalisation of a claim for Irish Research and
Development Tax Credits (R&D tax credits) in respect of the year ended December 31, 2008 and the
refund of US state taxes. The credit in 2008 relates primarily to the release of a provision for US
State taxes at December 31, 2007 which was not considered to be required. The credit in 2007
relates primarily to the finalisation of a claim for R&D tax credits in respect of the year ended
December 31, 2006.
 (c)
    
    In 2009 there was a deferred tax charge of US$1,015,000 (2008: US$3,744,000 credit; 2007:
US$538,000 credit) recognised in respect of Ireland and a deferred tax charge of US$75,000 (2008:
US$208,000 credit; 2007: US$3,740,000 charge) recognised in respect of overseas tax jurisdictions.
 (d)
    
    The impairment charge in 2008 and the restructuring charges in 2008 and in 2007 had a
significant impact on the income tax (credit)/charge in those financial years. The tax credit in
2008 includes a deferred tax credit of US$4,536,000 relating to the impairment and a deferred tax
credit of US$215,000 relating to the restructuring (see note 3). The income tax charge in 2007
includes a deferred tax credit of US$1,584,000 relating to the restructuring (see note 3). The
income tax charge in 2007 also includes a tax expense of US$3,780,000 relating to the derecognition
of deferred tax assets previously recognised, which primarily arose on tax losses carried forward
in the Groups US operations. The derecognition of these deferred tax assets was considered
appropriate in light of the increased tax losses caused by the restructuring and uncertainty over
the timing of the utilisation of the tax losses.
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007Effective tax rate
    
    US$000
    
    
    US$000
    
    
    US$000Profit/(loss) before taxation
    
    
    12,915
    
    
    
    (81,670
    )
    
    
    (32,063
    )As a percentage of profit/(loss) before tax:Current tax
    
    
    0.00
    %
    
    
    0.07
    %
    
    
    (0.34
    %)Total (current and deferred)
    
    
    8.45
    %
    
    
    4.76
    %
    
    
    (10.32
    %)
  91




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 9.
    
    INCOME TAX EXPENSE / (CREDIT) (CONTINUED)
 The following table reconciles the applicable Republic of Ireland statutory tax rate to the
effective total tax rate for the Group:
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007Irish corporation tax
    
    
    12.50
    %
    
    
    12.50
    %
    
    
    12.50
    %Adjustments in respect of prior years
    
    
    (0.93
    %)
    
    
    0.04
    %
    
    
    0.21
    %Effect of tax rates on overseas earnings
    
    
    25.30
    %
    
    
    1.67
    %
    
    
    5.08
    %Effect of non deductible expenses
    
    
    1.09
    %
    
    
    (6.48
    %)
    
    
    (8.24
    %)Effect of current year net operating
losses and temporary differences for
which no deferred tax asset was
recognised
    
    
    (30.66
    %)
    
    
    (3.21
    %)
    
    
    (9.00
    %)Effect of derecognition of deferred tax
assets relating to loss carryforwards
and temporary differences at the start
of the period
    
    
    
    
    
    
    
    
    
    
    (11.79
    %)R&D tax credit
    
    
    
    
    
    
    0.29
    %
    
    
    1.05
    %Effect of Irish income taxable at
higher tax rate
    
    
    1.15
    %
    
    
    (0.05
    %)
    
    
    (0.13
    %)Effective tax rate
    
    
    8.45
    %
    
    
    4.76
    %
    
    
    (10.32
    %)
 Deferred tax recognised directly in equity
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000
    
    
    US$000Relating to forward
contracts as hedged
instruments
    
    
    3
    
    
    
    26
    
    
    
    (23
    )3
    
    
    
    26
    
    
    
    (23
    )
 a.
    
    The distribution of profit/(loss) before taxes by geographical area was as follows:
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000
    
    
    US$000Rest of World  Ireland
    
    
    5,240
    
    
    
    (59,917
    )
    
    
    (23,143
    )Rest of World  Other
    
    
    (1,206
    )
    
    
    (4,395
    )
    
    
    (2,182
    )Americas
    
    
    8,881
    
    
    
    (17,358
    )
    
    
    (6,738
    )12,915
    
    
    
    (81,670
    )
    
    
    (32,063
    )
 b.
    
    At December 31, 2009, the Group had unutilised net operating losses as follows:
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000
    
    
    US$000USA
    
    
    7,569
    
    
    
    10,167
    
    
    
    9,158France
    
    
    2,368
    
    
    
    1,812
    
    
    
    1,085Germany
    
    
    1,152
    
    
    
    3,245
    
    
    
    3,540Ireland
    
    
    1,918
    
    
    
    290
    
    
    
    290UK
    
    
    101
    
    
    
    197
    
    
    
    16013,108
    
    
    
    15,711
    
    
    
    14,233
 The utilisation of these net operating loss carryforwards is limited to future profits in the
USA, France, Germany, Ireland and the UK. The US net operating loss has a maximum carryforward
of 20 years. US$1,159,000 of the net operating losses in the USA will expire by December 31,
2024, US$5,267,000 will expire by December 31, 2026 and US$1,143,000 will expire by December 31,
2027.
  92




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 9.
    
    INCOME TAX EXPENSE / (CREDIT) (CONTINUED)
 The French, German, Irish and UK net operating losses can be carried forward indefinitely.
 At December 31, 2009, the Group recognised a deferred tax asset of US$96,000 (2008: US$133,000)
in respect of net operating loss carryforwards in Germany and the UK, as there are sufficient
taxable temporary differences relating to the same taxation authority and the same taxable
entity which will result in taxable amounts against which the unused tax losses can be utilised
before they expire. The utilisation of these net operating loss carryforwards is limited to
future profits in Germany and the UK.
 At December 31, 2009, the Group had unrecognised deferred tax assets in respect of unused tax
losses, unused tax credits and deductible temporary differences as follows:
 December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000
    
    
    US$000USA  unused tax losses
    
    
    3,071
    
    
    
    4,126
    
    
    
    3,717Germany  unused tax losses
    
    
    427
    
    
    
    866
    
    
    
    945France  unused tax losses
    
    
    861
    
    
    
    598
    
    
    
    290Ireland  unused tax losses
    
    
    73
    
    
    
    73
    
    
    
    73USA  unused tax credits
    
    
    346
    
    
    
    346
    
    
    
    314USA-deductible temporary
differences
    
    
    387
    
    
    
    3,464
    
    
    
    1,600Unrecognised Deferred Tax Asset
    
    
    5,165
    
    
    
    9,473
    
    
    
    6,939
 A deferred tax asset of US$ 3,071,000 (2008 : US$4,126,000) in respect of net operating losses
in the USA, US$427,000 (2008 : US$866,000) in respect of net operating losses in Germany,
US$861,000 (2008 : US$598,000) in respect of net operating losses in France and US$73,000 (2008
: US$73,000) in respect of net operating losses in Ireland were not recognised at December 31,
2009 due to uncertainties regarding full utilisation of these losses in the related tax
jurisdiction in future periods (see note 13). The Group has US state credit carryforwards of
US$346,000 at December 31, 2009 (2008: US$346,000). A deferred tax asset of US$346,000 (2008:
US$346,000) in respect of US state credit carryforwards was not recognised in 2009 due to
uncertainties regarding future full utilisation of these state credit carryforwards in the
related tax jurisdiction in future periods.
 (d)
    
    There are no income tax consequences for the Company attaching to the payment of dividends by
Trinity Biotech plc to shareholders of the Company.
  93




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 10.
    
    EARNINGS/(LOSS) PER SHARE
 Basic earnings/(loss) per ordinary shareBasic earnings/(loss) per ordinary share for the Group is computed by dividing the profit after
taxation of US$11,824,000 (2008: loss after tax of US$77,778,000) (2007: loss after tax of
US$35,372,000) for the financial year by the weighted average number of A ordinary and B
ordinary shares in issue of 83,737,884 (2008: 81,394,075) (2007: 76,036,579). 1,400,000 of the
total weighted average shares used as the EPS denominator relate to the 700,000 B ordinary
shares in issue. In all respects these shares are treated the same as A ordinary shares except
for the fact that they have two voting rights per share, rights to participate in any liquidation
or sale of the Group and to receive dividends as if each Class B ordinary share were two Class
A ordinary shares. Hence the earnings/(loss) per share for a B ordinary share is exactly twice
the earnings/ (loss) per share of an A ordinary share.
 December 31,
    
    
    December 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2007A ordinary shares
    
    
    82,337,884
    
    
    
    79,994,075
    
    
    
    74,636,579B ordinary shares (multiplied by 2)
    
    
    1,400,000
    
    
    
    1,400,000
    
    
    
    1,400,000Basic earnings/ (loss) per share denominator
    
    
    83,737,884
    
    
    
    81,394,075
    
    
    
    76,036,579Reconciliation to weighted average earnings per
share denominator:Number of A ordinary shares at January 1 (note 18)
    
    
    82,017,581
    
    
    
    74,756,765
    
    
    
    73,601,497Number of B ordinary shares at January 1
(multiplied by 2)
    
    
    1,400,000
    
    
    
    1,400,000
    
    
    
    1,400,000Weighted average number of shares issued during
the year
    
    
    320,303
    
    
    
    5,237,310
    
    
    
    1,035,082Basic earnings/ (loss) per share denominator
    
    
    83,737,884
    
    
    
    81,394,075
    
    
    
    76,036,579
 The weighted average number of shares issued during the year is calculated by taking the number of
shares issued by the number of days in the year each share is in issue divided by 365 days.
 Diluted earnings/ (loss) per ordinary shareDiluted earnings/ (loss) per ordinary share is computed by dividing the profit after tax of
US$11,824,000 (2008: loss after tax of US$77,778,000) (2007: loss after tax of US$35,372,000) for
the financial year by the diluted weighted average number of ordinary shares in issue of
83,772,094 (2008: 81,394,075) (2007: 76,036,579).
 The basic weighted average number of shares for the Group may be reconciled to the number used in
the diluted earnings/ (loss) per ordinary share calculation as follows:
 December 31,
    
    
    December 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2007Basic earnings/ (loss) per share denominator
(see above)
    
    
    83,737,884
    
    
    
    81,394,075
    
    
    
    76,036,579Issuable on exercise of options and warrants
    
    
    34,210
    
    
    
    
    
    
    
    Diluted earnings/ (loss) per share denominator *
    
    
    83,772,094
    
    
    
    81,394,075
    
    
    
    76,036,579
 *
    
    At December 31, 2009, the number of shares issuable on the exercise of options and warrants is
dilutive. At December 31, 2008, the number of shares issuable on the exercise of options and
warrants was not dilutive. At December 31, 2007, the number of shares issuable on the exercise of
options and warrants was anti-dilutive and hence the diluted (loss)/ earnings per share was
calculated excluding the number of shares issuable on the exercise of options and warrants. If the
number of shares issuable on the exercise of options and warrants had not been anti-dilutive,
1,854,825 shares issuable on the exercise of options and warrants would have been included in the
diluted (loss)/ earnings per share denominator in 2007.
  94




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 
 10.
    
    EARNINGS/(LOSS) PER SHARE (CONTINUED)
 Earnings per ADSIn June 2005, Trinity Biotech adjusted its ADS ratio from 1 ADS: 1 Ordinary Share to 1 ADS: 4
Ordinary Shares. Earnings per ADS for all periods presented have been restated to reflect this
exchange ratio.
 Basic earnings/ (loss) per ADS for the Group is computed by dividing the profit after taxation of
US$11,824,000 (2008: loss after tax of US$77,778,000) (2007: loss after tax of US$35,372,000) for
the financial year by the weighted average number of ADS in issue of 20,934,471 (2008: 20,348,519)
(2007: 19,009,144).
 December 31,
    
    
    December 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2007A ordinary shares  ADS
    
    
    20,584,471
    
    
    
    19,998,519
    
    
    
    18,659,144B ordinary shares  ADS
    
    
    350,000
    
    
    
    350,000
    
    
    
    350,000Basic earnings/ (loss) per share denominator
    
    
    20,934,471
    
    
    
    20,348,519
    
    
    
    19,009,144
 Diluted earnings/ (loss) per ADS for the Group is computed by dividing the profit after taxation
of US$11,824,000 (2008: loss after tax of US$77,778,000) (2007: loss after tax of US$35,372,000)
for the financial year, by the diluted weighted average number of ADS in issue of 20,934,471
(2008: 20,348,519) (2007: 19,009,144).
 The basic weighted average number of ADS shares for the Group may only be reconciled to the number
used in the diluted earnings per ADS share calculation as follows:
 December 31,
    
    
    December 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2007Basic earnings/ (loss) per share denominator
(see above)
    
    
    20,934,471
    
    
    
    20,348,519
    
    
    
    19,009,144Issuable on exercise of options and warrants
    
    
    8,553
    
    
    
    
    
    
    
    Diluted (loss)/ earnings per share denominator *
    
    
    20,943,024
    
    
    
    20,348,519
    
    
    
    19,009,144
 *
    
    At December 31, 2009, the number of shares issuable on the exercise of options and warrants is
dilutive. At December 31, 2008, the number of ADSs issuable on the exercise of options and
warrants was not dilutive. At December 31, 2007, the number of ADSs issuable on the exercise of
options and warrants was anti-dilutive and hence the diluted (loss)/earnings per share was
calculated excluding the number of ADSs issuable on the exercise of options and warrants. If the
number of ADSs issuable on the exercise of options and warrants had not been anti-dilutive,
463,706 ADSs issuable on the exercise of options and warrants would have been included in the
diluted (loss)/ earnings per ADS denominator in 2007.  95




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 11.
    
    PROPERTY, PLANT AND EQUIPMENT
 Computers,Freehold land
    
    
    Leasehold
    
    
    fixtures and
    
    
    Plant andand buildings
    
    
    improvements
    
    
    fittings
    
    
    equipment
    
    
    TotalUS$000
    
    

US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000CostAt January 1, 2008
    
    
    5,836
    
    
    
    3,675
    
    
    
    5,528
    
    
    
    29,666
    
    
    
    44,705Additions
    
    
    34
    
    
    
    41
    
    
    
    313
    
    
    
    3,551
    
    
    
    3,939Disposals / retirements
    
    
    
    
    
    
    (34
    )
    
    
    (126
    )
    
    
    (1,642
    )
    
    
    (1,802
    )Exchange adjustments
    
    
    (154
    )
    
    
    
    
    
    
    (9
    )
    
    
    (185
    )
    
    
    (348
    )At December 31, 2008
    
    
    5,716
    
    
    
    3,682
    
    
    
    5,706
    
    
    
    31,390
    
    
    
    46,494At January 1, 2009
    
    
    5,716
    
    
    
    3,682
    
    
    
    5,706
    
    
    
    31,390
    
    
    
    46,494Additions
    
    
    29
    
    
    
    8
    
    
    
    157
    
    
    
    2,111
    
    
    
    2,305Disposals / retirements
    
    
    
    
    
    
    
    
    
    
    (322
    )
    
    
    (933
    )
    
    
    (1,255
    )Exchange adjustments
    
    
    81
    
    
    
    
    
    
    
    5
    
    
    
    117
    
    
    
    203At December 31, 2009
    
    
    5,826
    
    
    
    3,690
    
    
    
    5,546
    
    
    
    32,685
    
    
    
    47,747Accumulated
depreciation and
impairment lossesAt January 1, 2008
    
    
    (970
    )
    
    
    (1,666
    )
    
    
    (3,362
    )
    
    
    (12,298
    )
    
    
    (18,296
    )Charge for the year
    
    
    (124
    )
    
    
    (381
    )
    
    
    (621
    )
    
    
    (3,299
    )
    
    
    (4,425
    )Impairment loss
    
    
    
    
    
    
    (1,149
    )
    
    
    (1,185
    )
    
    
    (10,761
    )
    
    
    (13,095
    )Disposals / retirements
    
    
    
    
    
    
    35
    
    
    
    81
    
    
    
    944
    
    
    
    1,060Exchange adjustments
    
    
    17
    
    
    
    
    
    
    
    6
    
    
    
    94
    
    
    
    117At December 31, 2008
    
    
    (1,077
    )
    
    
    (3,161
    )
    
    
    (5,081
    )
    
    
    (25,320
    )
    
    
    (34,639
    )At January 1, 2009
    
    
    (1,077
    )
    
    
    (3,161
    )
    
    
    (5,081
    )
    
    
    (25,320
    )
    
    
    (34,639
    )Charge for the year
    
    
    (124
    )
    
    
    (92
    )
    
    
    (159
    )
    
    
    (1,411
    )
    
    
    (1,786
    )Disposals / retirements
    
    
    
    
    
    
    
    
    
    
    322
    
    
    
    618
    
    
    
    940Exchange adjustments
    
    
    (10
    )
    
    
    
    
    
    
    (5
    )
    
    
    (73
    )
    
    
    (88
    )At December 31, 2009
    
    
    (1,211
    )
    
    
    (3,253
    )
    
    
    (4,923
    )
    
    
    (26,186
    )
    
    
    (35,573
    )Carrying amountsAt December 31, 2009
    
    
    4,615
    
    
    
    437
    
    
    
    623
    
    
    
    6,499
    
    
    
    12,174At December 31, 2008
    
    
    4,639
    
    
    
    521
    
    
    
    625
    
    
    
    6,070
    
    
    
    11,855
 The annual impairment review performed at December 31, 2009, showed that the carrying value of the
Groups assets did not exceed the amount that could be recovered through their use or sale and on
that basis, there was no impairment in 2009.
 The annual impairment review performed at December 31, 2008, showed that the carrying value of the
Groups assets exceeded the amount to be recovered through use or sale of the assets by a total of
US$97,126,000. The details of the impairment review are described in note 12. When an impairment
loss is identified in a cash generating unit, it must be first allocated to reduce the carrying
amount of any goodwill allocated to the cash generating unit and then to the other assets of the
unit pro rata on the basis of the carrying amount of each asset in the unit. In this manner, an
impairment loss of US$13,095,000 was allocated to property, plant and equipment in 2008. The
recoverable amount of property, plant and equipment was determined to be the value in use of each
cash generating unit.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 
 11.
    
    PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
 The impairment loss relating to property, plant and equipment in 2008 arose in the following cash
generating units:
 US$000Trinity Biotech Manufacturing Limited
    
    
    9,709Biopool US Inc
    
    
    2,821Primus Corporation Inc
    
    
    377Trinity Biotech France SARL
    
    
    179Trinity Biotech (UK Sales) Limited
    
    
    913,095
 Assets held under operating leases (where the Company is the lessor)Included in the carrying amount of property, plant and equipment are a number of assets included
in plant and equipment which generate operating lease revenue for the Group. The net book value
of these assets as at December 31, 2009 is US$1,409,000 (2008: US$768,000). Depreciation charged
on these assets in 2009 amounted to US$427,000 (2008: US$1,082,000). Impairment charged on these
assets amounted to US$2,373,000 in 2008.
 Included in disposals/retirements in 2009 is US$321,000 (2008: US$612,000) relating to the net book
value of leased instruments reclassified as inventory on return from customers.
 Assets held under finance leasesIncluded in the carrying amount of property, plant and equipment is an amount for capitalised
leased assets of US$704,000 (2008: US$537,000). Impairment charged on these assets amounted to
US$1,987,000 in 2008. The leased equipment secures the lease obligations (note 25). The
depreciation charge in respect of capitalised leased assets for the year ended December 31, 2009
was US$87,000 (2008: US$372,000). This is split as follows:
 Computers,Leasehold
    
    
    fixtures and
    
    
    Plant andimprovements
    
    
    fittings
    
    
    equipment
    
    
    TotalAt December 31, 2009
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Depreciation charge
    
    
    7
    
    
    
    7
    
    
    
    73
    
    
    
    87Carrying valueAt December 31, 2009
    
    
    26
    
    
    
    48
    
    
    
    630
    
    
    
    704
 Computers,Leasehold
    
    
    fixtures and
    
    
    Plant andimprovements
    
    
    fittings
    
    
    equipment
    
    
    TotalAt December 31, 2008
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Depreciation charge
    
    
    43
    
    
    
    46
    
    
    
    283
    
    
    
    372Impairment charge
    
    
    168
    
    
    
    280
    
    
    
    1,539
    
    
    
    1,987Carrying valueAt December 31, 2008
    
    
    33
    
    
    
    55
    
    
    
    449
    
    
    
    537
 Property, plant and equipment under constructionIncluded in plant and equipment at December 31, 2009 is an amount of US$9,000 (2008: US$148,000)
relating to assets in the course of construction. US$63,000 of assets were added to assets under
construction during the year, with a further US$202,000 of assets transferred to additions as
they were completed during 2009.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 
 12.
    
    GOODWILL AND INTANGIBLE ASSETS
 Development
    
    
    Patents andGoodwill
    
    
    costs
    
    
    licences
    
    
    Other
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000CostAt January 1, 2008
    
    
    79,599
    
    
    
    25,812
    
    
    
    10,093
    
    
    
    25,602
    
    
    
    141,106Additions
    
    
    
    
    
    
    8,426
    
    
    
    
    
    
    
    482
    
    
    
    8,908Exchange adjustments
    
    
    
    
    
    
    (26
    )
    
    
    
    
    
    
    (6
    )
    
    
    (32
    )At December 31, 2008
    
    
    79,599
    
    
    
    34,212
    
    
    
    10,093
    
    
    
    26,078
    
    
    
    149,982At January 1, 2009
    
    
    79,599
    
    
    
    34,212
    
    
    
    10,093
    
    
    
    26,078
    
    
    
    149,982Additions
    
    
    
    
    
    
    7,845
    
    
    
    
    
    
    
    407
    
    
    
    8,252Disposals / retirements
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (25
    )
    
    
    (25
    )Exchange adjustments
    
    
    
    
    
    
    13
    
    
    
    
    
    
    
    4
    
    
    
    17At December 31, 2009
    
    
    79,599
    
    
    
    42,070
    
    
    
    10,093
    
    
    
    26,464
    
    
    
    158,226Accumulated
amortisation and
Impairment lossesAt January 1, 2008
    
    
    (19,156
    )
    
    
    (6,662
    )
    
    
    (4,453
    )
    
    
    (5,907
    )
    
    
    (36,178
    )Charge for the year
    
    
    
    
    
    
    (750
    )
    
    
    (627
    )
    
    
    (2,239
    )
    
    
    (3,616
    )Impairment loss
    
    
    (40,390
    )
    
    
    (21,480
    )
    
    
    (3,728
    )
    
    
    (6,086
    )
    
    
    (71,684
    )Exchange adjustments
    
    
    
    
    
    
    18
    
    
    
    
    
    
    
    3
    
    
    
    21At December 31, 2008
    
    
    (59,546
    )
    
    
    (28,874
    )
    
    
    (8,808
    )
    
    
    (14,229
    )
    
    
    (111,457
    )At January 1, 2009
    
    
    (59,546
    )
    
    
    (28,874
    )
    
    
    (8,808
    )
    
    
    (14,229
    )
    
    
    (111,457
    )Charge for the year
    
    
    
    
    
    
    (401
    )
    
    
    (149
    )
    
    
    (1,409
    )
    
    
    (1,959
    )Disposals / retirements
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    25
    
    
    
    25Exchange adjustments
    
    
    
    
    
    
    (10
    )
    
    
    
    
    
    
    (3
    )
    
    
    (13
    )At December 31, 2009
    
    
    (59,546
    )
    
    
    (29,285
    )
    
    
    (8,957
    )
    
    
    (15,616
    )
    
    
    (113,404
    )Carrying amountsAt December 31, 2009
    
    
    20,053
    
    
    
    12,785
    
    
    
    1,136
    
    
    
    10,848
    
    
    
    44,822At December 31, 2008
    
    
    20,053
    
    
    
    5,338
    
    
    
    1,285
    
    
    
    11,849
    
    
    
    38,525
 Included within development costs are costs of US$4,564,000 which were not amortised in 2009 (2008:
US$3,453,000). These development costs are not being amortised as the projects to which the costs
relate were not fully complete at December 31, 2009 or at December 31, 2008. As at December 31,
2009 these projects are expected to be completed during the period from January 1, 2010 to June 30,
2011 at an expected approximate further cost of US$5.5 million.
 Other intangible assets consist primarily of acquired customer and supplier lists, trade
names, website and software costs.
 Amortisation is charged to the statement of operations through the selling, general and
administrative expenses line.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 12.
    
    GOODWILL AND INTANGIBLE ASSETS (CONTINUED)
 Included in other intangibles are the following indefinite lived assets:
 December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000Fitzgerald trade name
    
    
    970
    
    
    
    970RDI trade name
    
    
    560
    
    
    
    560Primus trade name
    
    
    670
    
    
    
    6702,200
    
    
    
    2,200
 No trade names were purchased as part of the 2007 acquisitions (note 24). The trade name assets
purchased as part of the acquisition of Primus and RDI in 2005 and Fitzgerald in 2004 were valued
by an external valuer using the relief from royalty method and based on factors such as (1) the
market and competitive trends and (2) the expected usage of the name. It was considered that these
trade names will generate net cash inflows for the Group for an indefinite period.
 Impairment testing for intangibles including goodwill and indefinite lived assetsGoodwill and other intangibles with indefinite lives are tested annually for impairment at each
balance sheet date at a cash-generating unit (CGU) level, i.e. the individual legal entities. For
the purpose of these annual impairment reviews goodwill is allocated to the relevant CGU.
 The recoverable amount of goodwill and intangible assets contained in each of the Groups CGUs is
determined based on the greater of the fair value less cost to sell and value in use calculations.
The Group operates in one business segment and accordingly the key assumptions are similar for all
CGUs. The value in use calculations use cash flow projections based on the 2010 budget and
projections for a further four years using a projected revenue growth rate of between 3% and 5% and
a cost growth rate of 3% to 5%. At the end of the five year forecast period, terminal values for
each CGU, based on a long term growth rate are used in the value in use calculations. The cashflows
and terminal values for the CGUs are discounted using pre-tax discount rates which range from 18%
to 33%.
 The value in use calculation is subject to significant estimation, uncertainty and accounting
judgements and are particularly sensitive in the following areas. In the event that there was a
variation of 10% in the assumed level of future growth in revenues, which would represent a
reasonably likely range of outcomes, the following impairment loss/write back would be recorded at
December 31, 2009:
 
    
    A net reversal of impairment loss of US$2.5 million in the event of a 10% increase in
the growth in revenues.
    
    An impairment loss of US$2.1 million in the event of a 10% decrease in the growth in
revenues.
 Similarly if there was a 10% variation in the discount rate used to calculate the potential
impairment of the carrying values, which would represent a reasonably likely range of outcomes,
there would be the following impairment loss/write back would be recorded at December 31, 2009:
 
    
    A reversal of impairment loss of US$8.0 million in the event of a 10% decrease in the
discount rate
    
    An impairment loss of US$7.7 million in the event of a 10% increase in the discount rate
  99




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 12.
    
    GOODWILL AND INTANGIBLE ASSETS (CONTINUED)
 Impairment loss arising on annual impairment review in 2008The impairment review carried out at December 31, 2008 identified a total impairment loss of
US$97,126,000 in six CGUs. In accordance with IAS 36, Impairment of Assets, the impairment loss
for each CGU was first allocated to reduce the carrying amount of any goodwill allocated to the
CGU, then to other assets of the unit pro rata on the basis of the carrying amount of each asset in
the CGU. The full impairment loss for Biopool US Inc and Trinity Biotech France SARL could not be
reflected in the 2008 financial statements for these entities because each of these entities had
insufficient assets to write down after excluding those assets with a known recoverable amount. The
amount of impairment loss that could not be recorded for Biopool US Inc and Trinity Biotech France
SARL was US$10,279,000 and US$1,054,000 respectively. As a result, the impairment loss that was
recorded in the 2008 financial statements was US$85,793,000. The table below sets forth the
impairment loss recorded for each of the CGUs at December 31, 2008:
 US$000Trinity Biotech Manufacturing Limited
    
    
    57,889Primus Corporation Inc.
    
    
    13,988Biopool US Inc
    
    
    8,649Trinity Biotech (UK Sales) Limited
    
    
    3,036Trinity Biotech France SARL
    
    
    1,973Clark Laboratories Inc
    
    
    258Total impairment loss
    
    
    85,793
 The table below sets forth the breakdown of the impairment loss for each class of asset at
December 31, 2008:
 US$000Goodwill and other intangible assets
    
    
    71,684Property, plant and equipment (see note 11)
    
    
    13,095Prepayments (see note 16)
    
    
    1,014Total impairment loss
    
    
    85,793
 Impairment loss arising on annual impairment review in 2007Arising from the 2007 impairment review, an impairment loss of US$19,156,000 was recognised in the
financial statements for the year ended December 31, 2007, representing the excess of the carrying
value over the discounted future cashflows. This impairment loss arose in Trinity Biotech
Manufacturing Limited, one of the Groups CGUs. Trinity Biotech Manufacturing Limited manufactures
coagulation, infectious diseases, point of care and clinical chemistry products at its plant in
Bray, Ireland, which are then sold to third party distributors and other selling entities within
the Group. The impairment loss was allocated entirely to goodwill and in particular to goodwill
arising on the following acquisitions:
 December 31, 2007US$000Bartels
    
    
    7,340Cambridge
    
    
    3,005Ortho
    
    
    783Dade
    
    
    8,02819,156
 In 2007 this impairment loss was allocated to the goodwill arising on the abovementioned
acquisitions as sales of the products associated with each of these acquisitions are now static or
declining.
 Impairment loss on bioMerieux technology assetIn December 2007, the Group announced a restructuring of its activities (see note 3). As part this
restructuring, the Group decided to rationalise its three existing coagulation product lines with a
view to creating a single product line consisting of the best products from each line. As a direct
consequence, a number of the Groups coagulation products were identified for culling, including a
number of products acquired from bioMerieux in 2006. As a result, the Group recognised in 2007 a
specific impairment loss of US$1,094,000 against the carrying value of the technology assets
acquired from bioMerieux. The impairment loss represented 25% of the carrying value of the
technology assets at the date of the group restructuring, as the products being culled represent
approximately 25% of sales of those products acquired from bioMerieux. The remaining useful
economic life of the remaining 75% of the carrying value of the technology asset was unaffected and
was amortised on a straight line basis, through December 31, 2009. No other assets were impaired
in 2007 as a direct result of the product rationalisation.
  100




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 13.
    
    DEFERRED TAX ASSETS AND LIABILITIES
 Recognised deferred tax assets and liabilities
 Deferred tax assets and liabilities of the Group are attributable to the following:
 Assets
    
    

Liabilities
    
    

Net2009
    
    
    2008
    
    
    2009
    
    
    2008
    
    
    2009
    
    
    2008US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Property, plant and equipment
    
    
    3,869
    
    
    
    1,285
    
    
    
    (1,187
    )
    
    
    (885
    )
    
    
    2,682
    
    
    
    400Intangible assets
    
    
    
    
    
    
    
    
    
    
    (6,343
    )
    
    
    (3,069
    )
    
    
    (6,343
    )
    
    
    (3,069
    )Inventories
    
    
    1,253
    
    
    
    1,214
    
    
    
    
    
    
    
    
    
    
    
    1,253
    
    
    
    1,214Provisions
    
    
    118
    
    
    
    255
    
    
    
    
    
    
    
    
    
    
    
    118
    
    
    
    255Other items
    
    
    
    
    
    
    
    
    
    
    (680
    )
    
    
    (419
    )
    
    
    (680
    )
    
    
    (419
    )Tax value of loss carryforwards
recognised
    
    
    561
    
    
    
    297
    
    
    
    
    
    
    
    
    
    
    
    561
    
    
    
    297Deferred tax assets/(liabilities)
    
    
    5,801
    
    
    
    3,051
    
    
    
    (8,210
    )
    
    
    (4,373
    )
    
    
    (2,409
    )
    
    
    (1,322
    )
 The deferred tax asset in 2009 is due mainly to deductible temporary differences and the
elimination of unrealised intercompany inventory profit. The deferred tax asset increased in 2009
principally due to a decrease in unrecognised deferred tax assets. As deferred tax assets are only
recognised where there is a reversing deferred tax liability in the same jurisdiction reversing in
the same period, the recognised deferred tax asset increases in line with the increase in deferred
tax liabilities.
 At December 31, 2009, the Group recognised a deferred tax asset of US$96,000 (2008: US$133,000) in
respect of net operating loss carryforwards in Germany and the UK, as there are sufficient taxable
temporary differences relating to the same taxation authority and the same taxable entity which
will result in taxable amounts against which the unused tax losses can be utilised before they
expire. The utilisation of these net operating loss carryforwards is limited to future profits in
Germany and the UK.
 The deferred tax liability is caused by the net book value of non-current assets being greater than
the tax written down value of non-current assets, temporary differences due to the acceleration of
the recognition of certain charges in calculating taxable income permitted in Ireland, the USA and
Germany, and deferred tax recognised on fair value asset uplifts in connection with business
combinations. The deferred tax liability increased in 2009, principally due to temporary
differences in respect of property, plant and equipment and intangible assets.
 Deferred tax assets and liabilities are only offset when the entity has a legally enforceable
right to set off current tax assets against current tax liabilities and where the intention is to
settle current tax liabilities and assets on a net basis or to realise the assets and settle the
liabilities simultaneously. At December 31, 2009 and at December 31, 2008 no deferred tax assets
and liabilities are offset as it is not certain as to whether there is a legally enforceable
right to set off current tax assets against current tax liabilities and it is also uncertain as
to what current tax assets may be set off against current tax liabilities and in what periods.
 Unrecognised deferred tax assets
 Deferred tax assets have not been recognised by the Group in respect of the following items:
 December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000Deductible temporary differences
    
    
    954
    
    
    
    8,536Capital losses
    
    
    6,138
    
    
    
    6,138US state credit carryforwards
    
    
    346
    
    
    
    346Net operating losses
    
    
    11,720
    
    
    
    15,24819,158
    
    
    
    30,268
 No deferred tax asset is recognised in 2009 or 2008 in respect of a capital loss forward of
US$6,138,000 in Ireland as it was not probable that there will be future capital gains against
which to offset these capital losses.
 A deferred tax asset of US$3,071,000 (2008: US$4,126,000) in respect of net operating losses of
US$7,569,000 (2008: US$10,167,000) in the US was not recognised due to uncertainties regarding the
timing of the utilisation of these losses in the related tax jurisdiction in future periods. A
deferred tax asset of US$387,000 (2008:
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 13.
    
    DEFERRED TAX ASSETS AND LIABILITIES (CONTINUED)
 US$3,464,000) in respect of deductible temporary differences of US$954,000 (2008: US$8,536,000) in
the US was not recognised due to uncertainties regarding the timing of the utilisation of these
temporary differences in the related tax jurisdiction in future periods.
 A deferred tax asset of US$346,000 (2008: US$346,000) in respect of US state credit carryforwards
was not recognised due to uncertainties regarding the timing of the utilisation of these state
credit carryforwards in the related tax jurisdiction in future periods.
 A deferred tax asset of US$427,000 (2008: US$866,000) in respect of net operating losses of
US$1,253,000 (2008: US$2,979,000) in Germany was not recognised due to uncertainties regarding the
timing of the utilisation of these losses in the related tax jurisdiction in future periods.
 A deferred tax asset of US$73,000 (2008: US$73,000) in respect of net operating losses of
US$290,000 (2008 : US$290,000) in Ireland was not recognised due to uncertainties regarding the
timing of the utilisation of these losses in the related tax jurisdiction in future periods.
 A deferred tax asset of US$861,000 (2008: US$598,000) in respect of net operating losses of
US$2,608,000 (2008: US$1,812,000) in France was not recognised due to uncertainties regarding the
timing of the utilisation of these losses in the related tax jurisdiction in future periods.
 Unrecognised deferred tax liabilities
 At December 31, 2009 and 2008, there was no recognised or unrecognised deferred tax liability for
taxes that would be payable on the unremitted earnings of certain of the Groups subsidiaries. The
Company is able to control the timing of the reversal of the temporary differences of its
subsidiaries and it is probable that these temporary differences will not reverse in the
foreseeable future.
 Movement in temporary differences during the year
 Balance
    
    
    
    
    
    
    
    
    BalanceJanuary, 1
    
    
    Recognised in
    
    
    Recognised
    
    
    December 31,2009
    
    
    income
    
    
    in equity
    
    
    2009US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Property, plant and equipment
    
    
    400
    
    
    
    2,282
    
    
    
    
    
    
    
    2,682Intangible assets
    
    
    (3,069
    )
    
    
    (3,274
    )
    
    
    
    
    
    
    (6,343
    )Inventories
    
    
    1,214
    
    
    
    39
    
    
    
    
    
    
    
    1,253Provisions
    
    
    255
    
    
    
    (137
    )
    
    
    
    
    
    
    118Other items
    
    
    (419
    )
    
    
    (264
    )
    
    
    3
    
    
    
    (680
    )Tax value of loss
carryforwards recognised
    
    
    297
    
    
    
    264
    
    
    
    
    
    
    
    561(1,322
    )
    
    
    (1,090
    )
    
    
    3
    
    
    
    (2,409
    )
 Balance
    
    
    
    
    
    
    
    
    
    
    BalanceJanuary, 1
    
    
    Recognised in
    
    
    Recognised
    
    
    December 31,2008
    
    
    income
    
    
    in equity
    
    
    2008US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Property, plant and equipment
    
    
    (1,603
    )
    
    
    2,003
    
    
    
    
    
    
    
    400Intangible assets
    
    
    (6,998
    )
    
    
    3,929
    
    
    
    
    
    
    
    (3,069
    )Inventories
    
    
    1,733
    
    
    
    (519
    )
    
    
    
    
    
    
    1,214Provisions
    
    
    1,520
    
    
    
    (1,265
    )
    
    
    
    
    
    
    255Other items
    
    
    (155
    )
    
    
    (290
    )
    
    
    26
    
    
    
    (419
    )Tax value of loss
carryforwards recognised
    
    
    203
    
    
    
    94
    
    
    
    
    
    
    
    297(5,300
    )
    
    
    3,952
    
    
    
    26
    
    
    
    (1,322
    )
  102




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 14.
    
    OTHER ASSETS
 December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000Finance lease receivables (see note 16)
    
    
    1,106
    
    
    
    776Other assets
    
    
    106
    
    
    
    1011,212
    
    
    
    877
 The Group leases instruments as part of its business. For details of future minimum finance lease
receivables with non-cancellable terms, please refer to note 16.
 15.
    
    INVENTORIES
 December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000Raw materials and consumables
    
    
    9,191
    
    
    
    11,245Work-in-progress
    
    
    10,478
    
    
    
    11,033Finished goods
    
    
    19,529
    
    
    
    20,03939,198
    
    
    
    42,317
 All inventories are stated at the lower of cost or net realisable value. Total inventories for the
Group are shown net of provisions of US$12,566,000 (2008: US$16,461,000).
 The movement on the inventory provision for the three year period to December 31, 2009 is as
follows:
 December 31,
    
    
    December 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2007US$000
    
    
    US$000
    
    
    US$000Opening provision at January 1
    
    
    16,461
    
    
    
    18,234
    
    
    
    7,284Charged during the year
    
    
    2,064
    
    
    
    1,570
    
    
    
    13,856Utilised during the year
    
    
    (4,751
    )
    
    
    (2,182
    )
    
    
    (2,323
    )Released during the year
    
    
    (1,208
    )
    
    
    (1,161
    )
    
    
    (583
    )Closing provision at December 31
    
    
    12,566
    
    
    
    16,461
    
    
    
    18,234
  103




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 16.
    
    TRADE AND OTHER RECEIVABLES
 December 31, 2009
    
    
    December 31, 2008US$000
    
    

US$000Trade receivables, net of impairment losses
    
    
    20,120
    
    
    
    24,962Prepayments*
    
    
    1,798
    
    
    
    736Value added tax
    
    
    67
    
    
    
    195Finance lease receivables
    
    
    692
    
    
    
    439Other receivables
    
    
    254
    
    
    
    1,08622,931
    
    
    
    27,418
 Trade receivables are shown net of an impairment losses provision of US$855,000 (2008:
US$619,000) (see note 27).
 *
    
    Prepayments are shown net of amounts written down as part of the 2008 impairment review of
US$1,014,000 (see note 3). Leases as lessor
 (i) Finance lease commitments  Group as lessor
 The Group leases instruments as part of its business. Future minimum finance lease receivables with
non-cancellable terms are as follows:
 December 31, 2009US$000MinimumGross
    
    
    Unearned
    
    
    paymentsinvestment
    
    
    income
    
    
    receivableLess than one year
    
    
    1,002
    
    
    
    310
    
    
    
    692Between one and five years (note 14)
    
    
    1,559
    
    
    
    453
    
    
    
    1,1062,561
    
    
    
    763
    
    
    
    1,798
 December 31, 2008US$000MinimumGross
    
    
    Unearned
    
    
    paymentsinvestment
    
    
    income
    
    
    receivableLess than one year
    
    
    764
    
    
    
    325
    
    
    
    439Between one and five years (note 14)
    
    
    1,394
    
    
    
    618
    
    
    
    7762,158
    
    
    
    943
    
    
    
    1,215
 In 2009, the Group classified future minimum lease receivables between one and five years of
US$1,106,000 (2008: US$776,000) to Other Assets, see note 14. Under the terms of the lease
arrangements, no contingent rents are receivable.
 (ii) Operating lease commitments  Group as lessorThe Group has leased a facility consisting of 9,000 square feet in Dublin, Ireland. This property
has been sub-let by the Group. The lease contains a clause to enable upward revision of the rent
charge on a periodic basis. The Group also leases instruments under operating leases as part of
its business.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 16.
    
    TRADE AND OTHER RECEIVABLES (CONTINUED)
 Future minimum rentals receivable under non-cancellable operating leases are as follows:
 December 31, 2009US$000Land andbuildings
    
    
    Instruments
    
    
    TotalLess than one year
    
    
    228
    
    
    
    1,992
    
    
    
    2,220Between one and five years
    
    
    911
    
    
    
    852
    
    
    
    1,763More than five years
    
    
    399
    
    
    
    
    
    
    
    3991,538
    
    
    
    2,844
    
    
    
    4,382
 December 31, 2008US$000Land andbuildings
    
    
    Instruments
    
    
    TotalLess than one year
    
    
    223
    
    
    
    1,160
    
    
    
    1,383Between one and five years
    
    
    892
    
    
    
    1,552
    
    
    
    2,444More than five years
    
    
    613
    
    
    
    
    
    
    
    6131,728
    
    
    
    2,712
    
    
    
    4,440
 17.
    
    CASH AND CASH EQUIVALENTS
 December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000Cash at bank and in hand
    
    
    4,711
    
    
    
    3,182Short-term deposits
    
    
    1,367
    
    
    
    2,002Cash and cash equivalents in the statements of cash flows
    
    
    6,078
    
    
    
    5,184
 Cash relates to all cash balances which are readily available at year end. Cash equivalents relate
to all cash balances on deposit, with a maturity of less than three months, which are not
restricted. See note 25 (c).
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 18.
    
    CAPITAL AND RESERVES
 Share capital
 Class A Ordinary shares
    
    
    Class A Ordinary sharesIn thousands of shares
    
    2009
    
    
    2008In issue at January 1
    
    
    82,017
    
    
    
    74,757Issued for cash
    
    
    935
    
    
    
    7,260In issue at December 31
    
    
    82,952
    
    
    
    82,017
 Class B Ordinary shares
    
    
    Class B Ordinary sharesIn thousands of shares
    
    2009
    
    
    2008In issue at January 1
    
    
    700
    
    
    
    700Issued for cash
    
    
    
    
    
    
    In issue at December 31
    
    
    700
    
    
    
    700
 The Group had authorised share capital of 200,000,000 A ordinary shares of US$0.0109 each (2008:
200,000,000 A ordinary shares of US$0.0109 each) and 700,000 B ordinary shares of US$0.0109
each (2008: 700,000 B ordinary shares of US$0.0109 each) as at December 31, 2009.
 (a)
    
    During 2009, the Group issued 935,000 A Ordinary shares from the exercise of employee
options for a consideration of US$897,000 settled in cash. The Group incurred costs of
US$68,000 in connection with the issue of shares.
 (b)
    
    During 2008, the Group issued 7,260,816 A Ordinary shares as part of a private placement.
These shares were issued for a consideration of US$7,116,000, settled in cash. The Group
incurred costs of US$439,000 in connection with the issue of shares.
 (c)
    
    Since its incorporation the Group has not declared or paid dividends on its A Ordinary
Shares or B Ordinary Shares. The Group anticipates, for the foreseeable future, that it
will retain any future earnings in order to fund its business operations. The Group does
not, therefore, anticipate paying any cash or share dividends on its A Ordinary or B
Ordinary shares in the foreseeable future. As provided in the Articles of Association of the
Company, dividends or other distributions will be declared and paid in US Dollars.
 (d)
    
    The Class B Ordinary Shares have two votes per share and the rights to participate in any
liquidation or sale of the Group and to receive dividends as if each Class B Ordinary Share
were two Class A Ordinary Shares. In all other respects they rank pari passu with the A
ordinary shares.
 Currency translation reserve
 The currency translation reserve comprises all foreign exchange differences arising from the
translation of the financial statements of foreign currency denominated operations of the Group
since January 1, 2004.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 18.
    
    CAPITAL AND RESERVES (CONTINUED)
 Warrant reserve
 The warrant reserve comprises the equity component of share warrants issued by the Group for the
purpose of fundraising. The Group calculates the fair value of warrants at the date of issue
taking the amount directly to a separate reserve within equity. The fair value is calculated using
the trinomial model. The fair value which is assessed at the grant date is calculated on the basis
of the contractual term of the warrants.
 In accordance with IFRS 2, 3,437,068 warrants with a fair value of US$4,498,000 (2008: 3,437,068
warrants with a fair value of US$4,498,000) have been classified as a separate reserve. There were
no new warrants issued by the Group in 2009.
 The following input assumptions were made to fair value the warrants issued by the Group during
2008:
 Fair value at date of measurement
    
    US$
    0.32Share price
    
    US$
    0.91Exercise price
    
    US$
    1.39Expected volatility
    
    
    51.31
    %Contractual life
    
    5 yearsRisk free rate
    
    
    2.57
    %Expected dividend yield
    
    
    
 The following input assumptions were made to fair value the warrants previously issued by the Group
in 2004:
 Fair value at date of measurement
    
    US$
    3.02Share price
    
    US$
    4.78Exercise price
    
    US$
    5.25Expected volatility
    
    
    78.31
    %Contractual life
    
    5 yearsRisk free rate
    
    
    3.26
    %Expected dividend yield
    
    
    
 Hedging reserve
 The hedging reserve comprises the effective portion of the cumulative net change in the fair value
of cash flow hedging instruments related to hedged transactions entered into but not yet
crystallised.
 Convertible notes  equity component
 Under IAS 32, Financial Instruments: Disclosure and Presentation, the equity and liability elements
of the convertible notes are recorded separately, with the equity component of the convertible
notes being calculated as the excess of the issue proceeds over the present value of the future
interest and principal repayments, discounted at the market rate of interest applicable to similar
liabilities that do not have a conversion option. Transaction costs are allocated to the liability
and equity components in proportion to the allocation of proceeds. On January 2, 2007, the maturity
date of the convertible notes, the amount classified as equity of US$164,000 was reclassified from
equity to retained earnings.
  107




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 19.
    
    SHARE OPTIONS AND SHARE WARRANTS
 Warrants
 In January 2004, the Company completed a private placement of 5,294,118 Class A Ordinary Shares
of the Company at a price of US$4.25 per A Ordinary share. The investors were granted five year
warrants (vesting immediately) to purchase an aggregate of 1,058,824 Class A Ordinary Shares in
the Company at an exercise price of US$5.25 per share. The Company granted further warrants
(vesting immediately) to purchase 200,000 Class A Ordinary Shares in the Company to agents of the
Company who were involved in this private placement in January 2004 at an exercise price of
US$5.25. These warrants also have a term of five years. At December 31, 2009 there were no warrants
outstanding under this award.
 The Company granted warrants to purchase 2,178,244 Class A Ordinary Shares (vesting immediately)
in April 2008. These warrants were issued at an exercise price of US$1.39 and have a term of five
years.
 December 31, 2009
    
    
    December 31, 2008Outstanding at beginning of year
    
    
    3,437,068
    
    
    
    1,258,824Granted
    
    
    
    
    
    
    2,178,244Exercised
    
    
    
    
    
    
    Forfeited
    
    
    (1,258,824
    )
    
    
    Outstanding at end of year
    
    
    2,178,244
    
    
    
    3,437,068
 Options
 Under the terms of the Companys Employee Share Option Plans, options to purchase 8,470,466
(excluding warrants of 2,178,244) A Ordinary Shares were outstanding at December 31, 2009. Under
the Plans, options are granted to officers, employees and consultants of the Group at the
discretion of the Compensation Committee (designated by the board of directors), under the terms
outlined below.
 The terms and conditions of the grants are as follows, whereby all options are settled by physical
delivery of shares:
 Vesting conditions
 The options vest following a period of service by the officer or employee. The required period of
service is determined by the Compensation Committee at the date of grant of the options (usually
the date of approval by the Compensation Committee) and it is generally over a three to four year
period. There are no market conditions associated with the share option grants.
 Contractual life
 The term of an option is determined by the Compensation Committee, provided that the term may not
exceed seven years from the date of grant (some of the Groups earlier Plans had a ten year life).
All options will terminate 90 days after termination of the option holders employment, service or
consultancy with the Group (or one year after such termination because of death or disability)
except where a longer period is approved by the Board of Directors. Under certain circumstances
involving a change in control of the Group, the Compensation Committee may accelerate the
exercisability and termination of the options up to a maximum of one year.
  108




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 19.
    
    SHARE OPTIONS AND SHARE WARRANTS (CONTINUED)
 The number and weighted average exercise price of share options and warrants per ordinary share is
as follows (as required by IFRS 2, this information relates to all grants of share options and
warrants by the Group):
 Weighted-averageOptions and
    
    
    exercise price
    
    
    Rangewarrants
    
    
    US$
    
    
    US$Outstanding January 1, 2007
    
    
    9,612,067
    
    
    
    2.32
    
    
    
    0.98-5.25Granted
    
    
    364,667
    
    
    
    2.24
    
    
    
    1.35-2.80Exercised
    
    
    (285,210
    )
    
    
    1.59
    
    
    
    0.98-2.72Forfeited
    
    
    (623,405
    )
    
    
    2.07
    
    
    
    0.98-4.00Outstanding at end of year
    
    
    9,068,119
    
    
    
    2.36
    
    
    
    0.98-5.25Exercisable at end of year
    
    
    6,417,223
    
    
    
    2.48
    
    
    
    0.98-5.25Outstanding January 1, 2008
    
    
    9,068,119
    
    
    
    2.36
    
    
    
    0.98-5.25Granted
    
    
    4,378,244
    
    
    
    1.14
    
    
    
    0.74-1.66Exercised
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    (1,635,249
    )
    
    
    1.58
    
    
    
    0.74-4.50Outstanding at end of year
    
    
    11,811,114
    
    
    
    2.01
    
    
    
    0.74-5.25Exercisable at end of year
    
    
    8,670,013
    
    
    
    2.27
    
    
    
    0.74-5.25Outstanding January 1, 2009
    
    
    11,811,114
    
    
    
    2.01
    
    
    
    0.74-5.25Granted
    
    
    2,220,000
    
    
    
    0.66
    
    
    
    0.66-0.66Exercised
    
    
    (934,456
    )
    
    
    0.96
    
    
    
    0.74-1.07Forfeited
    
    
    (2,447,948
    )
    
    
    3.52
    
    
    
    0.87-5.25Outstanding at end of year
    
    
    10,648,710
    
    
    
    1.48
    
    
    
    0.66-4.00Exercisable at end of year
    
    
    6,915,952
    
    
    
    1.84
    
    
    
    0.74-4.00
 The weighted average share price per A Ordinary share at the date of exercise for options
exercised in 2009 was US$1.05 (2007: US$2.59). There were no share options exercised in 2008.
 The opening share price per A Ordinary share at the start of the financial year was US$0.40
(2008: US$1.68) (2007: US$2.14) and the closing share price at December 31, 2009 was US$1.01 (2008:
US$0.40) (2007: US$1.70). The average share price for the year ended December 31, 2009 was US$0.80.
 A summary of the range of prices for the Companys stock options and warrants for the year ended
December 31, 2009 follows:
 Outstanding
    
    
    ExercisableWeighted-
    
    
    
    
    
    
    
    
    
    
    Weighted-avg
    
    
    
    
    
    
    
    
    
    
    avgcontractual
    
    
    
    
    
    
    
    
    
    
    contractualWeighted-
    
    
    life
    
    
    
    
    
    
    Weighted-
    
    
    lifeNo. of
    
    
    avg exercise
    
    
    remaining
    
    
    No. of
    
    
    avg exercise
    
    
    remainingExercise price range
    
    options/warrants
    
    
    price
    
    
    (years)
    
    
    options/warrants
    
    
    price
    
    
    (years)US$0.66-US$0.99
    
    
    3,275,000
    
    
    US$
    0.70
    
    
    
    6.12
    
    
    
    196,666
    
    
    US$
    0.74
    
    
    
    5.72US$1.00-US$2.05
    
    
    4,666,294
    
    
    US$
    1.47
    
    
    
    3.02
    
    
    
    4,141,040
    
    
    US$
    1.51
    
    
    
    2.76US$2.06- US$2.99
    
    
    2,551,916
    
    
    US$
    2.38
    
    
    
    2.74
    
    
    
    2,422,746
    
    
    US$
    2.39
    
    
    
    2.66US$3.00 -US$5.25
    
    
    155,500
    
    
    US$
    3.21
    
    
    
    1.37
    
    
    
    155,500
    
    
    US$
    3.21
    
    
    
    1.3710,648,710
    
    
    
    
    
    
    
    
    
    
    
    6,915,952
  109




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 19.
    
    SHARE OPTIONS AND SHARE WARRANTS (CONTINUED)
 The weighted-average remaining contractual life of options and warrants outstanding at December 31,
2009 was 3.88 years (2008: 3.45 years).
 A summary of the range of prices for the Companys stock options and warrants for the year ended
December 31, 2008 follows:
 Outstanding
    
    
    ExercisableWeighted-
    
    
    
    
    
    
    
    
    
    
    Weighted-avg
    
    
    
    
    
    
    
    
    
    
    avgcontractual
    
    
    
    
    
    
    
    
    
    
    contractualWeighted-
    
    
    life
    
    
    
    
    
    
    Weighted-
    
    
    lifeNo. of
    
    
    avg exercise
    
    
    remaining
    
    
    No. of
    
    
    avg exercise
    
    
    remainingExercise price range
    
    options
    
    
    price
    
    
    (years)
    
    
    options
    
    
    price
    
    
    (years)US$0.74-US$0.99
    
    
    2,093,667
    
    
    US$
    0.87
    
    
    
    4.28
    
    
    
    833,667
    
    
    US$
    0.98
    
    
    
    0.75US$1.00-US$2.05
    
    
    5,338,372
    
    
    US$
    1.47
    
    
    
    3.78
    
    
    
    4,165,860
    
    
    US$
    1.50
    
    
    
    3.36US$2.06-US$2.99
    
    
    2,908,750
    
    
    US$
    2.36
    
    
    
    3.80
    
    
    
    2,200,162
    
    
    US$
    2.43
    
    
    
    3.42US$3.00-US$5.25
    
    
    1,470,325
    
    
    US$
    4.96
    
    
    
    0.35
    
    
    
    1,470,324
    
    
    US$
    4.96
    
    
    
    0.3511,811,114
    
    
    
    
    
    
    
    
    
    
    
    8,670,013
 The recognition and measurement principles of IFRS 2 have been applied to share options granted
under the Companys Share Option Plans since November 7, 2002 which have not vested by January 1,
2005 in accordance with IFRS 2.
 Charge for the year under IFRS 2
 The charge for the year is calculated based on the fair value of the options granted which have not
yet vested.
 The fair value of the options is expensed over the vesting period of the option. US$521,000 was
charged to the statement of operations in 2009, (2008: US$1,166,000) (2007: US$1,403,000) split as
follows:
 December 31,
    
    
    December 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2007US$000
    
    
    US$000
    
    
    US$000Share-based payments  cost of sales
    
    
    19
    
    
    
    51
    
    
    
    71Share-based payments  research and development
    
    
    15
    
    
    
    48
    
    
    
    108Share-based payments  selling, general and administrative
    
    
    487
    
    
    
    1,067
    
    
    
    1,224Total
    
    
    521
    
    
    
    1,166
    
    
    
    1,403
 The total share based payments charge for the year was US$599,000. However, a total of US$78,000
(2008: US$27,000) (2007: US$79,000) of research and development share based payments were
capitalised in intangible development project assets during the year.
  110




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 19.
    
    SHARE OPTIONS AND SHARE WARRANTS (CONTINUED)
 The fair value of services received in return for share options granted are measured by reference
to the fair value of share options granted. The estimate of the fair value of services received is
measured based on a trinomial model. The following are the input assumptions used in determining
the fair value of share options granted in 2009, 2008 and 2007:
 Key
    
    
    
    
    
    
    Key
    
    
    
    
    
    
    Keymanagement
    
    
    Other
    
    
    management
    
    
    Other
    
    
    management
    
    
    Otherpersonnel
    
    
    employees
    
    
    personnel
    
    
    employees
    
    
    personnel
    
    
    employees2009
    
    
    2009
    
    
    2008
    
    
    2008
    
    
    2007
    
    
    2007Weighted average fair value at measurement date
    
    US$
    0.38
    
    
    
    
    
    
    US$
    0.47
    
    
    US$
    0.39
    
    
    
    
    
    
    US$
    0.96Total share options granted
    
    
    2,220,000
    
    
    
    
    
    
    
    1,665,000
    
    
    
    535,000
    
    
    
    
    
    
    
    364,667Weighted average share price
    
    US$
    0.66
    
    
    
    
    
    
    US$
    0.89
    
    
    US$
    0.92
    
    
    
    
    
    
    US$
    2.28Weighted average exercise price
    
    US$
    0.66
    
    
    
    
    
    
    US$
    0.89
    
    
    US$
    0.92
    
    
    
    
    
    
    US$
    2.28Weighted average expected volatility
    
    
    63.31
    %
    
    
    
    
    
    
    51.61
    %
    
    
    46.79
    %
    
    
    
    
    
    
    47.41
    %Weighted average expected life
    
    5.73 years
    
    
    
    
    
    
    6.36 years
    
    
    4.60 years
    
    
    
    
    
    
    4.18 yearsWeighted average risk free interest rate
    
    
    2.47
    %
    
    
    
    
    
    
    2.77
    %
    
    
    3.28
    %
    
    
    
    
    
    
    4.35
    %Expected dividend yield
    
    
    0
    %
    
    
    
    
    
    
    0
    %
    
    
    0
    %
    
    
    
    
    
    
    0
    %
 No options were granted to the key management during 2007.
 The expected life of the options is based on historical data and is not necessarily indicative of
exercise patterns that may occur. The expected volatility is based on the historic volatility
(calculated based on the expected life of the options). The Group has considered how future
experience may affect historical volatility. The profile and activities of the Group are not
expected to change in the immediate future and therefore Trinity Biotech would expect estimated
volatility to be consistent with historical volatility.
 20.
    
    INTEREST-BEARING LOANS AND BORROWINGS
 This note provides information about the contractual terms of the Groups interest-bearing loans
and borrowings. For more information about the Groups exposure to interest rate and foreign
currency risk, see note 27.
 December 31, 2009
    
    
    December 31, 2008Note
    
    
    US$000
    
    

US$000Current liabilitiesFinance lease liabilities
    
    
    
    
    
    
    791
    
    
    
    430Bank loans, secured
    
    
    25
    (c)- Repayable by instalment
    
    
    
    
    
    
    4,890
    
    
    
    5,302- Repayable not by instalment
    
    
    
    
    
    
    6,944
    
    
    
    6,92412,625
    
    
    
    12,656Non-current liabilitiesFinance lease liabilities
    
    
    
    
    
    
    1,470
    
    
    
    1,138Bank loans, secured
    
    
    25
    (c)- Repayable by instalment
    
    
    
    
    
    
    17,761
    
    
    
    22,32719,231
    
    
    
    23,465
 Bank loans
 Trinity Biotech has a US$48,340,000 club banking facility with Allied Irish Bank plc and Bank of
Scotland (Ireland) Limited (the banks). The facility consists of a US Dollar floating interest
rate term loan of US$41,340,000, which runs until July 2012, and a one year revolver of
US$7,000,000.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 20.
    
    INTEREST-BEARING LOANS AND BORROWINGS (CONTINUED)
 The facility was amended in December 2009, with the length of the term remaining unchanged (July
2012). The repayment schedule has been revised to US$2,415,000 payable in January and July 2010
(revised from US$3,215,000). The repayment schedule for January 2011, July 2011 and January 2012
remains unchanged at US$3,215,000 per repayment. However, the final repayment in July 2012 has
been revised to US$8,032,000 (previously US$6,432,000). During 2009, amounts of $2,144,000 and
$3,215,000 were paid in January and July respectively. The revolver loan element of the facility
has remained at US$7,000,000. This facility is secured on the assets of the Group (see note 25
(c)).
 Various covenants apply to the Groups bank borrowings. At December 31, 2009, the total amount
outstanding under the facility amounted to US$29,327,000, net of unamortised funding costs of
US$180,000.
 Finance lease liabilities
 Finance lease liabilities are payable as follows:
 December 31, 2009US$000Minimumleasepayments
    
    
    Interest
    
    
    PrincipalLess than one year
    
    
    909
    
    
    
    118
    
    
    
    791In more than one year, but not more than two
    
    
    904
    
    
    
    66
    
    
    
    838In more than two years but not more than five
    
    
    665
    
    
    
    32
    
    
    
    6332,478
    
    
    
    216
    
    
    
    2,262
 December 31, 2008US$000Minimumleasepayments
    
    
    Interest
    
    
    PrincipalLess than one year
    
    
    514
    
    
    
    84
    
    
    
    430In more than one year, but not more than two
    
    
    477
    
    
    
    58
    
    
    
    419In more than two years but not more than five
    
    
    757
    
    
    
    38
    
    
    
    7191,748
    
    
    
    180
    
    
    
    1,568
 Under the terms of the lease arrangements, no contingent rents are payable.
 Terms and debt repayment schedule
 The terms and conditions of outstanding interest bearing loans and borrowings at December 31, 2009
are as follows:
 Nominal
    
    
    
    
    
    
    Fair
    
    
    Carrying
    
    
    Fair
    
    
    Carryinginterest
    
    
    Year of
    
    
    Value
    
    
    Value
    
    
    Value
    
    
    ValueFacility
    
    Currency
    
    
    rate
    
    
    maturity
    
    
    December 31, 2009
    
    
    December 31, 2008Fixed bank loans
    
    USD
    
    
    5.00% - 6.00
    %
    
    
    2009 -2012
    
    
    
    268
    
    
    
    268
    
    
    
    2
    
    
    
    2Floating (LIBOR) bank loans
    
    USD
    
    
    2.53
    %
    
    
    2009 -2012
    
    
    
    29,327
    
    
    
    29,327
    
    
    
    34,551
    
    
    
    34,551Finance lease liabilities
    
    Euro
    
    
    6.24
    %
    
    
    2009 -2014
    
    
    
    2,268
    
    
    
    2,257
    
    
    
    1,551
    
    
    
    1,524Finance lease liabilities
    
    GBP
    
    
    7.72
    %
    
    
    2009 -2010
    
    
    
    5
    
    
    
    5
    
    
    
    44
    
    
    
    44Total interest-bearing loans and borrowings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    31,868
    
    
    
    31,857
    
    
    
    36,148
    
    
    
    36,121
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 21.
    
    TRADE AND OTHER PAYABLES
 December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000Trade payables
    
    
    3,693
    
    
    
    11,585Payroll taxes
    
    
    424
    
    
    
    393Employee related social insurance
    
    
    485
    
    
    
    429Accrued restructuring expenses
    
    
    
    
    
    
    1,144Accrued liabilities
    
    
    6,926
    
    
    
    7,506Deferred income
    
    
    1,316
    
    
    
    1,91212,844
    
    
    
    22,969
 Accrued restructuring expenses
 The restructuring accrual in 2008 relates to contract termination costs and employee termination
benefits associated with the restructuring announced in December 2008 (see note 3).
 22.
    
    PROVISIONS
 December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000Provisions
    
    
    50
    
    
    
    50
 Movement on provisions during the year is as follows:
 December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000Balance at January 1
    
    
    50
    
    
    
    100Provisions released during the year
    
    
    
    
    
    
    (50
    )Balance at December 31
    
    
    50
    
    
    
    50
 During 2009 the Group experienced no significant product warranty claims. However, the Group
believes that it is appropriate to retain a product warranty provision to cover any future claims.
The provision at December 31, 2009 represents the estimated cost of product warranties, the exact
amount which cannot be determined. US$50,000 represents managements best estimate of these
obligations at December 31, 2009.
 23.
    
    OTHER PAYABLES
 December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000Other payables
    
    
    59
    
    
    
    59
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 24.
    
    BUSINESS COMBINATIONS
 2009 AcquisitionsThere were no acquisitions made by the Group in the current financial year.
 2008 AcquisitionsThere were no acquisitions made by the Group in 2008.
 2007 AcquisitionsIn September 2007, the Group acquired the immuno technology business of Cortex Biochem Inc
(Cortex) for a total cash consideration of US$2,925,000, consisting of cash consideration of
US$2,887,000 and acquisition expenses of US$38,000.
 In October 2007, the Group acquired certain components relating to the distribution business of
Sterilab Services UK (Sterilab), a distributor of Infectious Diseases products, for a total of
US$1,489,000, consisting of cash consideration of US$1,480,000 and acquisition expenses of
US$9,000.
 The results for both acquisitions in 2007 are incorporated from the date of acquisition in the
consolidated statement of operations for the year ended December 31, 2007.
 Cortex
    
    
    Sterilab
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000Property, plant and equipment
    
    
    
    
    
    
    23
    
    
    
    23Inventories
    
    
    41
    
    
    
    88
    
    
    
    129Trade and other receivables
    
    
    152
    
    
    
    
    
    
    
    152Intangible assets
    
    
    844
    
    
    
    656
    
    
    
    1,5001,037
    
    
    
    767
    
    
    
    1,804Deferred tax liability (see note 13)
    
    
    102
    
    
    
    183
    
    
    
    285Trade and other payables
    
    
    45
    
    
    
    
    
    
    
    45147
    
    
    
    183
    
    
    
    330Fair value of net assets
    
    
    890
    
    
    
    584
    
    
    
    1,474Goodwill arising on acquisition
    
    
    2,035
    
    
    
    905
    
    
    
    2,9402,925
    
    
    
    1,489
    
    
    
    4,414Consideration:Cash payments
    
    
    2,887
    
    
    
    1,480
    
    
    
    4,367Costs associated with the acquisition
    
    
    38
    
    
    
    9
    
    
    
    472,925
    
    
    
    1,489
    
    
    
    4,414
  114




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 24.
    
    BUSINESS COMBINATIONS (CONTINUED)
 Goodwill capitalised during 2007 in respect of the Cortex and Sterilab acquisitions amounted to
US$2,940,000 and comprised:
 Fair valueBook values
    
    
    adjustments
    
    
    Fair value
    
    
    Consideration
    
    
    GoodwillUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000CortexTrade and other receivables
    
    
    152
    
    
    
    
    
    
    
    152Inventories
    
    
    218
    
    
    
    (177
    )
    
    
    41Intangible assets
    
    
    
    
    
    
    844
    
    
    
    844370
    
    
    
    667
    
    
    
    1,037Deferred tax liability
    
    
    
    
    
    
    102
    
    
    
    102Trade and other payables
    
    
    45
    
    
    
    
    
    
    
    45325
    
    
    
    565
    
    
    
    890
    
    
    
    2,925
    
    
    
    2,035SterilabProperty, plant and equipment
    
    
    23
    
    
    
    
    
    
    
    23Inventories
    
    
    99
    
    
    
    (11
    )
    
    
    88Intangible assets
    
    
    
    
    
    
    656
    
    
    
    656122
    
    
    
    645
    
    
    
    767Deferred tax liability
    
    
    
    
    
    
    183
    
    
    
    183Trade and other payables
    
    
    
    
    
    
    
    
    
    
    122
    
    
    
    462
    
    
    
    584
    
    
    
    1,489
    
    
    
    905
 Impact of the acquisition on the statement of operations and cashflow
 Due to their size, the impact of the acquisition of Cortex and Sterilab does not have a significant
impact on the statement of operations and cashflow in 2007.
 The following represents the increases to goodwill which took place in 2007.
 US$000Goodwill recognised with respect to 2007 acquisitions- Cortex
    
    
    2,035- Sterilab
    
    
    905Goodwill recognised with respect to 2006 acquisitions- bioMerieux
    
    
    42Total goodwill movement in 2007
    
    
    2,982
  115




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 25.
    
    COMMITMENTS AND CONTINGENCIES
 (a)
    
    Capital Commitments
 The Group has no capital commitments authorised and contracted for as at December 31, 2009 (2008:
US$Nil).
 (b)
    
    Leasing Commitments
 The Group leases a number of premises under operating leases. The leases typically run for
periods up to 25 years. Lease payments are reviewed periodically (typically on a 5 year basis) to
reflect market rentals. Operating lease commitments payable during the next 12 months amount to
US$4,289,000 (2008: US$4,438,000) payable on leases of buildings at Dublin and Bray, Ireland,
Berkshire, UK, Paris, France, Jamestown, New York, Kansas City, Missouri, Berkeley Heights, New
Jersey, Acton, Massachusetts and Carlsbad, California and motor vehicles and equipment in the UK
and Germany. US$415,000 (2008: US$181,000) of these operating lease commitments relates to leases
whose remaining term will expire within one year, US$406,000 (2008: US$902,000) relates to leases
whose remaining term expires between one and two years, US$395,000 (2008: US$350,000) between two
and five years and the balance of US$3,073,000 (2008: US$3,005,000) relates to leases which expire
after more than five years. See note 26 for related party leasing arrangements.Future minimum operating lease commitments with non-cancellable terms in excess of one year are as follows:
 Year ended2009Operating leasesUS$0002010
    
    
    4,2892011
    
    
    3,7432012
    
    
    3,4862013
    
    
    3,4822014
    
    
    3,317Later years
    
    
    35,503Total lease obligations
    
    
    53,820
 Year ended2008Operating leasesUS$0002009
    
    
    4,4382010
    
    
    3,9722011
    
    
    3,4912012
    
    
    3,1642013
    
    
    3,030Later years
    
    
    39,595Total lease obligations
    
    
    57,690
 For future minimum finance lease commitments, in respect of which the lessor has a charge over the
related assets, see note 20.
 (c)
    
    Bank Security
 The Groups bank borrowings (note 20) are secured by a fixed and floating charge over the assets of
Group entities, including specific charges over the shares in the subsidiaries and the Groups
patents. Various covenants apply to the Groups bank borrowings with respect to profitability,
interest cover, capital expenditure, working capital and location of assets. As at December 31,
2009 the Group was in breach of one of these covenants which was waived by the banks in advance of
the balance sheet date. The covenant which was breached concerned the level of earnings before
interest, tax, depreciation, amortisation and share option expense for the year ended December 31,
2009 (see note 27).
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 25.
    
    COMMITMENTS AND CONTINGENCIES (CONTINUED)
 (d)
    
    Section 17 Guarantees
 Pursuant to the provisions of Section 17, Irish Companies (Amendment) Act, 1986, the Company has
guaranteed the liabilities of Trinity Biotech Manufacturing Limited, Trinity Biotech Manufacturing
Services Limited, Trinity Research Limited, Benen Trading Limited, Trinity Biotech Financial
Services Limited and Trinity Biotech Sales Limited, subsidiary undertakings in the Republic of
Ireland, for the financial year to December 31, 2009 and, as a result, these subsidiary
undertakings have been exempted from the filing provisions of Section 17, Irish Companies
(Amendment) Act, 1986. Where the Company enters into these guarantees of the indebtedness of other
companies within its Group, the Company considers these to be insurance arrangements and accounts
for them as such. The Company treats the guarantee contract as a contingent liability until such
time as it becomes probable that the company will be required to make a payment under the
guarantee. The Company does not enter into financial guarantees with third parties.
 (e)
    
    Government Grant Contingencies
 The Group has received training and employment grant income from Irish development agencies.
Subject to existence of certain conditions specified in the grant agreements, this income may
become repayable. No such conditions existed as at December 31, 2009. However if the income were
to become repayable, the maximum amounts repayable as at December 31, 2009 would amount to
US$3,646,000 (2008: US$1,997,000).
 26.
    
    RELATED PARTY TRANSACTIONS
 The Group has related party relationships with its subsidiaries, and with its directors and
executive officers.
 Leasing arrangements with related parties
 The Group has entered into various arrangements with JRJ Investments (JRJ), a partnership owned
by Mr OCaoimh and Dr Walsh, directors of the Company, to provide for current and potential future
needs to extend its premises at IDA Business Park, Bray, Co. Wicklow, Ireland.
 In July 2000, Trinity Biotech entered into an agreement with JRJ pursuant to which the Group took a
lease of a 25,000 square foot premises adjacent to the existing facility for a term of 20 years at
a rent of 7.62 per square foot for an annual rent of 190,000 (US$274,000). During 2006, the rent
on this property was reviewed and increased to 11.00 per square foot, resulting in an annual rent
of 275,000 (US$397,000).
 In November 2002, the Group entered into an agreement for a 25 year lease with JRJ for offices that
have been constructed adjacent to its premises at IDA Business Park, Bray, Co. Wicklow, Ireland.
The annual rent of 381,000 (US$550,000) is payable from January 1, 2004. There was a rent review
performed on this premises in 2009 and further to this review, there was no change to the annual
rental charge.
 In December 2007, the Group entered into an agreement with Mr. OCaoimh and Dr Walsh pursuant to
which the Group took a lease on an additional 43,860 square foot manufacturing facility in Bray,
Ireland at a rate of 17.94 per square foot (including fit out) giving a total annual rent of
787,000 (US$1,136,000).
 Trinity Biotech and its directors (excepting Mr OCaoimh and Dr Walsh who express no opinion on
this point) believe that the arrangements entered into represent a fair and reasonable basis on
which the Group can meet its ongoing requirements for premises.
 Compensation of key management personnel of the Group
 At December 31, 2009 and December 31, 2008 the key management personnel of the Group were made up
of three key personnel, the two executive directors and the Chief Financial Officer/Company
Secretary, Mr Kevin Tansley. Mr Brendan Farrell served as Chief Executive Officer until October
2008 and, accordingly, his remuneration up to that date has been included in the analysis below for
2008.
  117




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 26.
    
    RELATED PARTY TRANSACTIONS
 Compensation for the year ended December 31, 2009 of these personnel is detailed below:
 December 31, 2009
    
    
    December 31, 2008US$000
    
    

US$000Short-term employee benefits
    
    
    1,244
    
    
    
    1,789Compensation for loss of office
    
    
    
    
    
    
    1,283Post-employment benefits
    
    
    136
    
    
    
    277Equity compensation benefits
    
    
    367
    
    
    
    7361,747
    
    
    
    4,085
 Total director emoluments included in note 6 includes non executive directors fees of US$313,000
(2008: US$200,000) and equity compensation benefits of US$55,000 (2008: US$39,000) and excludes the
compensation costs of the Chief Financial Officer of US$317,000 (2008: US$408,000). Total
directors remuneration is also included in personnel expenses (note 7).
 Directors and executive officers interests in the Companys shares and share option plan
 A Ordinary Shares
    
    
    Share optionsAt January 1, 2009
    
    
    6,774,070
    
    
    
    4,114,085Exercised
    
    
    
    
    
    
    (471,955
    )Granted
    
    
    
    
    
    
    2,220,000Expired Options
    
    
    
    
    
    
    (195,044
    )Shares purchased
    
    
    150,996
    
    
    
    At December 31, 2009
    
    
    6,925,066
    
    
    
    5,667,086
 A Ordinary Shares
    
    
    Share optionsAt January 1, 2008
    
    
    5,881,205
    
    
    
    4,977,083Exercised
    
    
    
    
    
    
    Granted
    
    
    
    
    
    
    1,665,000Additions /(Removals)*
    
    
    (589,135
    )
    
    
    (1,885,000
    )Expired Options
    
    
    
    
    
    
    (642,998
    )Shares purchased
    
    
    1,482,000
    
    
    
    At December 31, 2008
    
    
    6,774,070
    
    
    
    4,114,085
 *
    
    The amounts removed are wholly attributable to shares and share options held by Mr Brendan
Farrell as Mr. Farrell was not an executive officer or a director at the year end. Rayville Limited, an Irish registered company, which is wholly owned by the two executive directors
and certain other executives of the Group, owns all of the B non-voting Ordinary Shares in
Trinity Research Limited, one of the Groups subsidiaries. The B shares do not entitle the
holders thereof to receive any assets of the company on a winding up. All of the A voting
ordinary shares in Trinity Research Limited are held by the Group. Trinity Research Limited may,
from time to time, declare dividends to Rayville Limited and Rayville Limited may declare dividends
to its shareholders out of those amounts. Any such dividends paid by Trinity Research Limited are
ordinarily treated as a compensation expense by the Group in the consolidated financial statements
prepared in accordance with IFRS, notwithstanding their legal form of dividends to minority
interests, as this best represents the substance of the transactions.
 There were no director loans advanced during 2009. In February 2008, Dr. Walsh advanced a loan to
Trinity Biotech Manufacturing Limited amounting to 650,000 (US$938,000) at an annual interest rate
of 5.68%. The company repaid the loan to Dr. Walsh prior to the year end. There were no other
director loans advanced during 2008 and there were no loan balances payable to or receivable from
directors at January 1, 2009 and at December 31, 2009.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 26.
    
    RELATED PARTY TRANSACTIONS (CONTINUED)
 In December 2006, the Remuneration Committee of the Board approved the payment of a dividend of
US$5,331,000 by Trinity Research Limited to Rayville Limited on the B shares held by it. This
amount was then lent back by Rayville to Trinity Research Limited. This loan was partially used to
fund executive compensation in 2007, 2008 and 2009 and will fund future executive compensation over
the next number of years under the arrangement described above, with the amount of such funding
being reflected in compensation expense over the corresponding period. As the dividend is matched
by a loan from Rayville Limited to Trinity Research Limited which is repayable solely at the
discretion of the Remuneration Committee of the Board and is unsecured and interest free, the Group
netted the dividend paid to Rayville Limited against the corresponding loan from Rayville Limited
in the 2006 consolidated financial statements.
 In June 2009, the Board approved the payment of a dividend of $2,830,000 by Trinity Research
Limited to Rayville Limited on the B shares held by it. This amount was then lent back by
Rayville to Trinity Research Limited. As the dividend is matched by a loan from Rayville Limited
to Trinity Research Limited which is repayable solely at the discretion of the Remuneration
Committee of the Board and is unsecured and interest free, the Group netted the dividend paid to
Rayville Limited against the corresponding loan from Rayville Limited in the 2009 consolidated
financial statements.
 The amount of payments to Rayville included in compensation expense was US$2,061,000, US$1,866,000
and US$1,071,000 for 2007, 2008 and 2009 respectively, of which US$1,867,000, US$1,609,905 and
US$887,000 respectively related to the key management personnel of the Group. There were no
dividends payable to Rayville Limited as of December 31, 2009 or 2007. Dividends payable to
Rayville at December 31, 2008 amounted to US$60,000. Of the US$1,071,000 of payments made to
Rayville Limited in 2009, US$311,000 represented repayments of the loan to Trinity Research Limited
referred to above.
 27.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS
 The Group uses a range of financial instruments (including cash, bank borrowings, convertible
notes, promissory notes, finance leases, receivables, payables and derivatives) to fund its
operations. These instruments are used to manage the liquidity of the Group in a cost effective,
low-risk manner. Working capital management is a key additional element in the effective management
of overall liquidity. The Group does not trade in financial instruments or derivatives. The main
risks arising from the utilization of these financial instruments are interest rate risk, liquidity
risk and credit risk.
 Effective interest rate and repricing analysis
 The following table sets out all interest-earning financial assets and interest bearing financial
liabilities held by the Group at December 31, indicating their effective interest rates and the
period in which they re-price:
 As at December 31,2009
    
    
    
    
    
    Effective
    
    
    Total
    
    
    6 mths or less
    
    
    6 - 12 mths
    
    
    1-2 years
    
    
    2-5 yearsUS$000
    
    Note
    
    
    interest rate
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Cash and cash equivalents
    
    
    17
    
    
    
    0.2
    %
    
    
    6,078
    
    
    
    6,078
    
    
    
    
    
    
    
    
    
    
    
    Secured bank loans  floating
    
    
    20
    
    
    
    2.53
    %
    
    
    (29,327
    )
    
    
    (29,327
    )
    
    
    
    
    
    
    
    
    
    
    Secured bank loans  fixed
    
    
    20
    
    
    
    6.00
    %
    
    
    (268
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (268
    )Finance lease liabilities  fixed
    
    
    20
    
    
    
    6.61
    %
    
    
    (2,261
    )
    
    
    (5
    )
    
    
    
    
    
    
    (305
    )
    
    
    (1,951
    )Total
    
    
    
    
    
    
    
    
    
    
    (25,778
    )
    
    
    (23,254
    )
    
    
    
    
    
    
    (305
    )
    
    
    (2,219
    )
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2009
 27.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS (CONTINUED)
 As at December 31,2008
    
    
    
    
    
    Effective
    
    
    Total
    
    
    6 mths or less
    
    
    6 - 12 mths
    
    
    1-2 years
    
    
    2-5 yearsUS$000
    
    Note
    
    
    interest rate
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Cash and cash equivalents
    
    
    17
    
    
    
    2.16
    %
    
    
    5,184
    
    
    
    5,184
    
    
    
    
    
    
    
    
    
    
    
    Secured bank loans  floating
    
    
    20
    
    
    
    2.74
    %
    
    
    (34,551
    )
    
    
    (34,551
    )
    
    
    
    
    
    
    
    
    
    
    Secured bank loans  fixed
    
    
    20
    
    
    
    5
    %
    
    
    (2
    )
    
    
    (2
    )
    
    
    
    
    
    
    
    
    
    
    Finance lease liabilities  fixed
    
    
    20
    
    
    
    6.98
    %
    
    
    (1,568
    )
    
    
    
    
    
    
    (16
    )
    
    
    (28
    )
    
    
    (1,524
    )Total
    
    
    
    
    
    
    
    
    
    
    (30,937
    )
    
    
    (29,369
    )
    
    
    (16
    )
    
    
    (28
    )
    
    
    (1,524
    )
 The effective interest rate on all loans and borrowings is the same as the actual interest rates.
 Interest rate risk
 The Group borrows in US dollars at floating and fixed rates of interest. Year-end borrowings
totalled US$31,856,000 (2008: US$36,121,000), (net of cash: US$25,778,000 (2008: US$30,937,000)),
at interest rates ranging from 2.53% to 6.61% (2008: 2.74% to 6.98%).
 The total year-end borrowings consists of fixed rate debt of US$2,529,000 (2008: US$1,570,000) at
interest rates ranging from 6% to 6.61% (2008: 5% to 6.98%) and floating rate debt of US$29,327,000
(2008:US$34,551,000) at an interest rate of 2.53% (2008: 2.74%). In broad terms, a one-percentage
point increase in interest rates would increase interest income by US$61,000 (2008: US$52,000) and
increase the interest expense by US$295,000 (2008: US$349,000) resulting in an increase in the net
interest charge of US$234,000 (2008: increase by US$297,000).
 Interest rate profile of financial liabilities
 The interest rate profile of financial liabilities of the Group was as follows:
 December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000Fixed rate instrumentsFixed rate financial liabilities
    
    
    (2,529
    )
    
    
    (1,570
    )Variable rate instrumentsFinancial assets
    
    
    6,078
    
    
    
    5,184Floating rate financial liabilities
    
    
    (29,327
    )
    
    
    (34,551
    )(25,778
    )
    
    
    (30,937
    )
 Fixed rate instruments comprise fixed rate borrowings and finance lease obligations. The weighted
average interest rate and weighted average period for which the rate is fixed is as follows:
 December 31, 2009
    
    
    December 31, 2008Fixed rate financial liabilitiesWeighted average interest rate
    
    
    6.21
    %
    
    
    6.16
    %Weighted average period for which rate is fixed
    
    2.82 years
    
    
    3.56 years
 Financial assets comprise of cash and cash equivalents at December 31, 2009 and at December 31,
2008 (see note 17).
 Floating rate financial liabilities comprise other borrowings that bear interest at a rate of
2.53%. These borrowings are provided by lenders at a margin of 2.25% over inter-bank rates.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSDECEMBER 31, 200927.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS (CONTINUED)Fair value sensitivity analysis for fixed rate instrumentsThe Group does not account for any fixed rate financial liabilities at fair value through the
statement of operations. Therefore a change in interest rates at December 31, 2009 would not affect
profit or loss.Cash flow sensitivity analysis for variable rate instrumentsA change of 100 basis points in interest rates at the reporting date would have no effect on profit
or loss for the period. This assumes that all other variables, in particular foreign currency
rates, remain constant.Fair ValuesThe table below sets out the Groups classification of each class of financial assets/liabilities
and their fair values:
 Cash flow
    
    
    Liabilities at
    
    
    TotalLoans and
    
    
    hedge
    
    
    amortised
    
    
    carrying
    
    
    FairNote
    
    
    receivables
    
    
    derivatives
    
    
    cost
    
    
    amount
    
    
    ValueDecember 31, 2009Trade receivables
    
    
    16
    
    
    
    20,120
    
    
    
    
    
    
    
    
    
    
    
    20,120
    
    
    
    20,120Cash and cash equivalents
    
    
    17
    
    
    
    6,078
    
    
    
    
    
    
    
    
    
    
    
    6,078
    
    
    
    6,078Finance lease receivable
    
    
    14, 16
    
    
    
    1,798
    
    
    
    
    
    
    
    
    
    
    
    1,798
    
    
    
    1,798Forward contracts used
for hedging
    
    
    
    
    
    
    
    
    
    
    (58
    )
    
    
    
    
    
    
    (58
    )
    
    
    (58
    )Grant income receivable
    
    
    
    
    
    
    201
    
    
    
    
    
    
    
    
    
    
    
    201
    
    
    
    201Secured bank loans
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    (29,595
    )
    
    
    (29,595
    )
    
    
    (29,595
    )Finance lease liabilities
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    (2,261
    )
    
    
    (2,261
    )
    
    
    (2,273
    )Trade and other payables
(excluding deferred
revenue)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (11,528
    )
    
    
    (11,528
    )
    
    
    (11,528
    )Other payables
    
    
    23
    
    
    
    
    
    
    
    
    
    
    
    (59
    )
    
    
    (59
    )
    
    
    (59
    )Provisions
    
    
    22
    
    
    
    
    
    
    
    
    
    
    
    (50
    )
    
    
    (50
    )
    
    
    (50
    )28,197
    
    
    
    (58
    )
    
    
    (43,493
    )
    
    
    (15,354
    )
    
    
    (15,366
    )
 Cash flow
    
    
    Liabilities at
    
    
    TotalLoans and
    
    
    hedge
    
    
    amortised
    
    
    carrying
    
    
    FairNote
    
    
    receivables
    
    
    derivatives
    
    
    cost
    
    
    amount
    
    
    ValueDecember 31, 2008Trade receivables
    
    
    16
    
    
    
    24,962
    
    
    
    
    
    
    
    
    
    
    
    24,962
    
    
    
    24,962Cash and cash equivalents
    
    
    17
    
    
    
    5,184
    
    
    
    
    
    
    
    
    
    
    
    5,184
    
    
    
    5,184Finance lease receivable
    
    
    14, 16
    
    
    
    1,215
    
    
    
    
    
    
    
    
    
    
    
    1,215
    
    
    
    1,215Forward contracts used
for hedging
    
    
    
    
    
    
    
    
    
    
    (27
    )
    
    
    
    
    
    
    (27
    )
    
    
    (27
    )Grant income receivable
    
    
    
    
    
    
    1,008
    
    
    
    
    
    
    
    
    
    
    
    1,008
    
    
    
    1,008Secured bank loans
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    (34,553
    )
    
    
    (34,553
    )
    
    
    (34,553
    )Finance lease liabilities
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    (1,568
    )
    
    
    (1,568
    )
    
    
    (1,595
    )Trade and other payables
(excluding deferred
revenue)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (21,057
    )
    
    
    (21,057
    )
    
    
    (21,057
    )Other payables
    
    
    23
    
    
    
    
    
    
    
    
    
    
    
    (59
    )
    
    
    (59
    )
    
    
    (59
    )Provisions
    
    
    22
    
    
    
    
    
    
    
    
    
    
    
    (50
    )
    
    
    (50
    )
    
    
    (50
    )32,369
    
    
    
    (27
    )
    
    
    (57,287
    )
    
    
    (24,945
    )
    
    
    (24,972
    )
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSDECEMBER 31, 200927.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS (CONTINUED)Interest rates used for determining fair valueThe interest rates used to discount estimated cash flows, where applicable, based on observable
market rates plus a premium which reflects the risk profile of the Group at the reporting date,
were as follows:
 December 31, 2009
    
    
    December 31, 2008Loans and borrowings
    
    
    2.53
    %
    
    
    2.74
    %Leases
    
    
    5.66%  5.82
    %
    
    
    5.02%  5.14
    %
 There was no significant difference between the fair value and carrying value of the Groups trade
receivables and trade and other payables at December 31, 2009 and December, 31 2008 as all fell due
within 6 months.Liquidity riskThe Groups operations are cash generating. Short-term flexibility is achieved through the
management of the groups short-term deposits and through the use of a US$7,000,000 revolver loan
facility.The following are the contractual maturities of financial liabilities, including estimated interest
payments:
 Carrying
    
    
    Contractual
    
    
    6 mths or
    
    
    6 mthsAs at December 31, 2009
    
    amount
    
    
    cash flows
    
    
    less
    
    
    12 mths
    
    
    1-2 years
    
    
    2-5 yearsUS$000
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Financial liabilitiesSecured bank loans 
floating
    
    
    29,327
    
    
    
    30,268
    
    
    
    9,660
    
    
    
    2,592
    
    
    
    6,549
    
    
    
    11,467Secured bank loans  fixed
    
    
    268
    
    
    
    288
    
    
    
    56
    
    
    
    56
    
    
    
    112
    
    
    
    64Finance lease liabilities
 fixed
    
    
    2,261
    
    
    
    2,478
    
    
    
    457
    
    
    
    452
    
    
    
    898
    
    
    
    671Trade & other payables
    
    
    12,844
    
    
    
    12,844
    
    
    
    12,844
    
    
    
    
    
    
    
    
    
    
    
    44,700
    
    
    
    45,878
    
    
    
    23,017
    
    
    
    3,100
    
    
    
    7,559
    
    
    
    12,202
 Trinity Biotech has a US$48,340,000 club banking facility with AIB plc and Bank of Scotland
(Ireland) Limited (the banks). The facility consists of a five year term loan of US$41,340,000
and a one year revolver of US$7,000,000. At December 31, 2009, the total amount outstanding under
the facility amounted to US$29,327,000, net of unamortised funding costs of US$180,000. Various
covenants apply to these borrowings. In the event that the Group breaches these covenants, this
may result in the borrowings becoming payable immediately. As at December 31, 2009 the Group was
in breach of one of these covenants which was waived by the banks. The covenant which was breached
concerned the level of earnings before interest, tax, depreciation, amortisation and share option
expense for the year end December 31, 2009. The margin applied to the loan facility has remained
consistent at 2.25% above LIBOR.
 Carrying
    
    
    Contractual
    
    
    6 mths or
    
    
    6 mths As at December 31, 2008
    
    amount
    
    
    cash flows
    
    
    less
    
    
    12 mths
    
    
    1-2 years
    
    
    2-5 yearsUS$000
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Financial liabilitiesSecured bank loans 
floating
    
    
    34,551
    
    
    
    36,289
    
    
    
    9,614
    
    
    
    3,463
    
    
    
    6,817
    
    
    
    16,395Secured bank loans  fixed
    
    
    2
    
    
    
    2
    
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    Finance lease liabilities
 fixed
    
    
    1,568
    
    
    
    1,748
    
    
    
    260
    
    
    
    254
    
    
    
    477
    
    
    
    757Trade & other payables
    
    
    22,969
    
    
    
    22,969
    
    
    
    22,969
    
    
    
    
    
    
    
    
    
    
    
    59,090
    
    
    
    61,008
    
    
    
    32,845
    
    
    
    3,717
    
    
    
    7,294
    
    
    
    17,152
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSDECEMBER 31, 200927.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS (CONTINUED)Foreign exchange riskThe majority of the Groups activities are conducted in US Dollars. The primary foreign exchange
risk arises from the fluctuating value of the Groups Euro denominated expenses as a result of the
movement in the exchange rate between the US Dollar and the Euro. Arising from this, where
considered necessary, the Group pursues a treasury policy which aims to sell US Dollars forward to
match a portion of its uncovered Euro expenses at exchange rates lower than budgeted exchange
rates. These forward contracts are primarily cashflow hedging instruments whose objective is to
cover a portion of these Euro forecasted transactions. All of the forward contracts
normally have maturities of less than one year after the balance sheet date. All of the forward
contracts in place at December 31, 2009 have a maturity of less than one year after the balance
sheet date. Where necessary, these forward contracts will be rolled over at maturity.Euro denominated sales remained relatively consistent with the prior year, in percentage terms.
The Group had foreign currency denominated cash balances equivalent to US$518,000 at December 31,
2009 (2008: US$1,257,000).The Group states its forward exchange contracts at fair value in the balance sheet. The Group
classifies its forward exchange contracts as hedging forecasted transactions and thus accounts for
them as cash flow hedges. During 2009 and 2008, changes in the fair value of these contracts were
recognized in equity and then in the case of contracts which were exercised during 2009 and 2008,
the cumulative gain or losses were transferred to the statement of operations.At December 31, 2009 the fair value of the forward exchange contract in place amounted to a
liability of US$58,000 (2008: liability of US$27,000).The following are the contractual maturities of the forward contracts used for hedging in place at
December 31, 2009, which crystallize in 2010:
 Carrying
    
    
    Contractual cash
    
    
    6 mths or
    
    
    6 mths  12As at December 31, 2009
    
    amount
    
    
    flows
    
    
    less
    
    
    mthsUS$000
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Forward contract used for hedging:Outflow
    
    
    (58
    )
    
    
    (5,100
    )
    
    
    (2,550
    )
    
    
    (2,550
    )Inflow
    
    
    
    
    
    
    5,045
    
    
    
    2,522
    
    
    
    2,523(58
    )
    
    
    (55
    )
    
    
    (28
    )
    
    
    (27
    )
 Sensitivity analysisA 10% strengthening of the US dollar against the following currencies at December 31, 2009 would
have increased/ (decreased) profit or loss and other equity by the amounts shown below. This
analysis assumes that all other variables, in particular interest rates, remain constant.
 Other equityProfit or loss
    
    
    movementsUS$000
    
    
    US$000December 31, 2009Euro
    
    
    2,009
    
    
    
    5Pound Sterling
    
    
    (416
    )
    
    
    December 31, 2008Euro
    
    
    1,808
    
    
    
    2Pound Sterling
    
    
    (24
    )
    
    
    
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSDECEMBER 31, 200927.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS (CONTINUED)A 10% weakening of the US dollar against the above currencies at December 31, 2009 and December 31,
2008 would have the equal but opposite effect on the above currencies to the amounts shown above,
on the basis that all other variables remain constant.Credit RiskThe Group has no significant concentrations of credit risk. Exposure to credit risk is monitored
on an ongoing basis. The Group maintains specific provisions for potential credit losses. To date
such losses have been within managements expectations. Due to the large number of customers and
the geographical dispersion of these customers, the Group has no significant concentrations of
accounts receivable.With respect to credit risk arising from the other financial assets of the Group, which comprise
cash and cash equivalents and forward contracts, the Groups exposure to credit risk arises from
default of the counter-party, with a maximum exposure equal to the carrying amount of these
instruments.The Group maintains cash and cash equivalents and enters into forward contracts, when necessary,
with various financial institutions. These financial institutions are located in a number of
countries and Group policy is designed to limit exposure to any one institution. The Group
performs periodic evaluations of the relative credit standing of those financial institutions. The
carrying amount reported in the balance sheet for cash and cash equivalents and forward contracts
approximate their fair value.Exposure to credit riskThe carrying amount of financial assets represents the maximum credit exposure. The maximum
exposure to credit risk is as follows:
 Carrying Value
    
    
    Carrying ValueDecember 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000Third party trade receivables
    
    
    20,120
    
    
    
    24,962Finance lease income receivable
    
    
    1,798
    
    
    
    1,215Cash & cash equivalents
    
    
    6,078
    
    
    
    5,184Grant income receivable
    
    
    201
    
    
    
    1,00828,197
    
    
    
    32,369
 The maximum exposure to credit risk for trade receivables and finance lease income receivable by
geographic location is as follows:
 Carrying Value
    
    
    Carrying ValueDecember 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000United States
    
    
    10,187
    
    
    
    11,310Euro-zone countries
    
    
    3,215
    
    
    
    4,006UK
    
    
    599
    
    
    
    950Other European countries
    
    
    732
    
    
    
    1,866Other regions
    
    
    7,185
    
    
    
    8,04521,918
    
    
    
    26,177
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSDECEMBER 31, 200927.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS (CONTINUED)The maximum exposure to credit risk for trade receivables and finance lease income receivable by
type of customer is as follows:
 Carrying Value
    
    
    Carrying ValueDecember 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000End-user customers
    
    
    11,524
    
    
    
    11,404Distributors
    
    
    9,742
    
    
    
    12,623Non-governmental organisations
    
    
    652
    
    
    
    2,15021,918
    
    
    
    26,177
 Due to the large number of customers and the geographical dispersion of these customers, the Group
has no significant concentrations of accounts receivable.Impairment LossesThe ageing of trade receivables at December 31, 2009 is as follows:
 Gross
    
    
    Impairment
    
    
    Gross
    
    
    ImpairmentIn thousands of US$
    
    2009
    
    
    2009
    
    
    2008
    
    
    2008Not past due
    
    
    13,388
    
    
    
    102
    
    
    
    16,916
    
    
    
    97Past due 0-30 days
    
    
    3,817
    
    
    
    6
    
    
    
    4,274
    
    
    
    15Past due 31-120 days
    
    
    962
    
    
    
    29
    
    
    
    2,011
    
    
    
    89Greater than 120 days
    
    
    2,808
    
    
    
    718
    
    
    
    2,380
    
    
    
    41820,975
    
    
    
    855
    
    
    
    25,581
    
    
    
    619
 The movement in the allowance for impairment in respect of trade receivables during the year was as
follows:
 In thousands of US$
    
    2009
    
    
    2008
    
    
    2007Balance at January 1
    
    
    619
    
    
    
    657
    
    
    
    1,074Charged to costs and expenses
    
    
    302
    
    
    
    544
    
    
    
    578Amounts recovered during the year
    
    
    (22
    )
    
    
    (82
    )
    
    
    (190
    )Amounts written off during the year
    
    
    (44
    )
    
    
    (500
    )
    
    
    (805
    )Balance at December 31
    
    
    855
    
    
    
    619
    
    
    
    657
 The allowance for impairment in respect of trade receivables is used to record impairment losses
unless the Group is satisfied that no recovery of the account owing is possible. At this point the
amount is considered irrecoverable and is written off against the financial asset directly.Capital ManagementThe Groups policy is to maintain a strong capital base so as to maintain investor, creditor and
market confidence and to sustain future development of the business. The Board of Directors
monitors earnings per share as a measure of performance, which the Group defines as profit after
tax divided by the weighted average number of shares in issue.The Board of Directors have a policy to maintain a capital structure consisting of both debt and
equity and constantly monitors the mix of long term debt to equity. This approach is of
particular importance with respect to the acquisition strategy of the Group whereby the Group has
funded recent acquisitions using both equity and long term debt depending on the size of the
acquisition and the capital structure in place at the time of the acquisition.The Group has a long term lending facility with a number of lending banks (see note 20) and
Trinity Biotech is listed on the NASDAQ which allows the Group to raise funds through equity
financing where necessary.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 27.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS (CONTINUED)The Board of Directors is authorised to purchase its own shares on the market on the following
conditions;
 
    
    the aggregate nominal value of the shares authorised to be acquired shall not exceed 10% of
the aggregate nominal value of the issued share capital of the Company at the close of
business on the date of the passing of the resolution:
    
    the minimum price (exclusive of taxes and expenses) which may be paid for a share shall be
the nominal value of that share:
    
    the maximum price (exclusive of taxes and expenses) which may be paid for a share shall not
be more than the average of the closing bid price on NASDAQ in respect of the ten business
days immediately preceding the day on which the share is purchased.
 There were no changes to the Groups approach to capital management during the year.Neither the Company nor any of its subsidiaries are subject to externally imposed capital
requirements.
 28.
    
    PROPOSED DISPOSAL OF COAGULATION BUSINESSIn 2010, the Group signed an agreement to sell its worldwide Coagulation business to Diagnostica
Stago for US$90 million. Diagnostica Stago have agreed to purchase the share capital of Trinity
Biotech (UK Sales) Limited, Trinity Biotech GmbH and Trinity Biotech SARL, along with coagulation
assets of Biopool US Inc. and Trinity Biotech Manufacturing Limited. Included in the sale are
Trinitys lists of coagulation customers and suppliers, all coagulation inventory, intellectual
property and developed technology. In total, 320 Trinity employees will transfer their employment
to Diagnostica Stago. The transaction is expected to close during quarter 2, 2010.
 29.
    
    ACCOUNTING ESTIMATES AND JUDGEMENTSThe preparation of these financial statements requires the Group to make estimates and judgements
that affect the reported amount of assets, liabilities, revenues and expenses, and related
disclosure of contingent assets and liabilities.On an on-going basis, the Group evaluates these estimates, including those related to intangible
assets, contingencies and litigation. The estimates are based on historical experience and on
various other assumptions that are believed to be reasonable under the circumstances, the results
of which form the basis for making judgements about the carrying values of assets and liabilities
that are not readily apparent from other sources. Actual results may differ from these estimates
under different assumptions or conditions.Key sources of estimation uncertainty
 Note 12 contains information about the assumptions and the risk factors relating to goodwill
impairment. Note 19 outlines information regarding the valuation of share options and warrants.
In note 27, detailed analysis is given about the interest rate risk, credit risk, liquidity risk
and foreign exchange risk of the Group.
 Critical accounting judgements in applying the Groups accounting policiesCertain critical accounting judgements in applying the groups accounting policies are described
below:Research and development expenditureUnder IFRS as adopted by the EU, we write-off research and development expenditure as incurred,
with the exception of expenditure on projects whose outcome has been assessed with reasonable
certainty as to technical feasibility, commercial viability and recovery of costs through future
revenues. Such expenditure is capitalised at cost within intangible assets and amortised over its
expected useful life of 15 years, which commences when commercial production starts.Factors which impact our judgement to capitalise certain research and development expenditure
include the degree of regulatory approval for products and the results of any market research to
determine the likely future commercial success of products being developed. We review these
factors each year to determine whether our previous estimates as to feasibility, viability and
recovery should be changed.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 29.
    
    ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)Impairment of intangible assets and goodwillDefinite lived intangible assets are reviewed for indicators of impairment annually while goodwill
and indefinite lived assets are tested for impairment annually, individually or at the cash
generating unit level.Factors considered important, as part of an impairment review, include the following:
 
    
    Significant underperformance relative to expected historical or projected future operating results;
    
    Significant changes in the manner of our use of the acquired assets or the strategy for our overall business;
    
    Obsolescence of products;
    
    Significant decline in our stock price for a sustained period; and
    
    Our market capitalisation relative to net book value.
 When we determine that the carrying value of intangibles, non-current assets and related goodwill
may not be recoverable based upon the existence of one or more of the above indicators of
impairment, any impairment is measured based on our estimates of projected net discounted cash
flows expected to result from that asset, including eventual disposition. Our estimated impairment
could prove insufficient if our analysis overestimated the cash flows or conditions change in the
future.Allowance for slow-moving and obsolete inventoryWe evaluate the realisability of our inventory on a case-by-case basis and make adjustments to our
inventory provision based on our estimates of expected losses. We write-off any inventory that is
approaching its use-by date and for which no further re-processing can be performed. We also
consider recent trends in revenues for various inventory items and instances where the realisable
value of inventory is likely to be less than its carrying value.Allowance for impairment of receivablesWe make judgements as to our ability to collect outstanding receivables and where necessary make
allowances for impairment. Such impairments are made based upon a specific review of all
significant outstanding receivables. In determining the allowance, we analyse our historical
collection experience and current economic trends. If the historical data we use to calculate the
allowance for impairment of receivables does not reflect the future ability to collect outstanding
receivables, additional allowances for impairment of receivables may be needed and the future
results of operations could be materially affected.Accounting for income taxesSignificant judgement is required in determining our worldwide income tax expense provision. In the
ordinary course of a global business, there are many transactions and calculations where the
ultimate tax outcome is uncertain. Some of these uncertainties arise as a consequence of revenue
sharing and cost reimbursement arrangements among related entities, the process of identifying
items of revenue and expense that qualify for preferential tax treatment and segregation of foreign
and domestic income and expense to avoid double taxation. In addition, we operate within multiple
taxing jurisdictions and are subject to audits in these jurisdictions. These audits can involve
complex issues that may require an extended period of time for resolution. Although we believe
that our estimates are reasonable, no assurance can be given that the final tax outcome of these
matters will not be different than that which is reflected in our historical income tax provisions
and accruals. Such differences could have a material effect on our income tax provision and profit
in the period in which such determination is made. In managements opinion, adequate provisions
for income taxes have been made.Deferred tax assets and liabilities are determined for the effects of net operating losses and
temporary differences between the book and tax bases of assets and liabilities, using tax rates
projected to be in effect for the year in which the differences are expected to reverse. While we
have considered future taxable income and ongoing prudent and feasible tax planning strategies in
assessing whether deferred tax assets can be recognised, there is no assurance that these deferred
tax assets may be realisable. The extent to which recognised deferred tax assets are not realisable
could have a material adverse impact on our income tax provision and net income in the period in
which such determination is made.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSDECEMBER 31, 200929.
    
    ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)Item 18, note 13 to the consolidated financial statements outlines the basis for the deferred tax
assets and liabilities and includes details of the unrecognized deferred tax assets at year end.
The Group derecognized deferred tax assets arising on unused tax losses except to the extent that
there are sufficient taxable temporary differences relating to the same taxation authority and the
same taxable entity which will result in taxable amounts against which the unused tax losses can be
utilized before they expire. The derecognition of these deferred tax assets was considered
appropriate in light of the increased tax losses caused by the restructuring and uncertainty over
the timing of the utilization of the tax losses. Except for the derecognition of deferred tax
assets there were no material changes in estimates used to calculate the income tax expense
provision during 2009, 2008 or 2007.
 30.
    
    GROUP UNDERTAKINGSThe consolidated financial statements include the financial statements of Trinity Biotech plc and
the following principal subsidiary undertakings:
 Principal Country ofincorporation andName and registered office
    
    Principal activity
    
    operation
    
    Group % holdingTrinity Biotech plc 
IDA Business Park, Bray, 
Co. Wicklow, Ireland
    
    Investment and holding
company
    
    Ireland
    
    Holding companyTrinity Biotech Manufacturing 
Limited 
IDA Business Park, Bray, 
Co. Wicklow, Ireland
    
    Manufacture and sale of
diagnostic test kits
    
    Ireland
    
    
    100
    %Trinity Research Limited 
IDA Business Park, Bray, 
Co. Wicklow, Ireland
    
    Research and development
    
    Ireland
    
    
    100
    %Benen Trading Limited 
IDA Business Park, Bray, 
Co. Wicklow, Ireland
    
    Trading
    
    Ireland
    
    
    100
    %Trinity Biotech Manufacturing 
Services Limited 
IDA Business Park, Bray, 
Co. Wicklow, Ireland
    
    Engineering services
    
    Ireland
    
    
    100
    %Trinity Biotech Financial 
Services Limited 
IDA Business Park, Bray, 
Co Wicklow, Ireland
    
    Provision of financial
services
    
    Ireland
    
    
    100
    %Trinity Biotech Inc 
Girts Road, Jamestown, NY 14702, 
USA
    
    Holding Company
    
    U.S.A.
    
    
    100
    %Clark Laboratories Inc 
Trading as Trinity Biotech (USA) 
Girts Road, Jamestown 
NY14702, USA
    
    Manufacture and sale of
diagnostic test kits
    
    U.S.A.
    
    
    100
    %Mardx Diagnostics Inc
5919 Farnsworth Court 
Carlsbad 
CA 92008, USA
    
    Manufacture and sale of diagnostic test kits
    
    U.S.A.
    
    
    100
    %
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSDECEMBER 31, 200930.
    
    GROUP UNDERTAKINGS (CONTINUED)
 Principal Country ofincorporation andName and registered office
    
    Principal activity
    
    operation
    
    Group % holdingFitzgerald Industries
International, Inc 
2711 Centerville Road, Suite 400
Wilmington, New Castle 
Delaware, 19808, USA
    
    Management services company
    
    U.S.A.
    
    
    100
    %Biopool US Inc (trading as Trinity 
Biotech Distribution) 
Girts Road, Jamestown 
NY14702, USA
    
    Sale of diagnostic test kits
    
    U.S.A.
    
    
    100
    %Primus Corporation 
4231 E 75th Terrace 
Kansas City, 
MO 64132, USA
    
    Manufacture and sale of
diagnostic test kits and
instrumentation
    
    U.S.A.
    
    
    100
    %Trinity Biotech (UK Sales) Limited 
54 Queens Road 
Reading RG1 4A2, England
    
    Sale of diagnostic test kits
    
    UK
    
    
    100
    %Trinity Biotech GmbH 
Lehbrinksweg 59, 
32657 Lemgo, Germany
    
    Manufacture of diagnostic
instrumentation and
sale of diagnostic test kits
    
    Germany
    
    
    100
    %Trinity Biotech France SARL 
300A Rue Marcel Paul 
21 Des Grands Godets 
93 500 Champigny sur marne 
France
    
    Sale of diagnostic test kits
    
    France
    
    
    100
    %
 31.
    
    AUTHORISATION FOR ISSUEThese Group consolidated financial statements were authorised for issue by the Board of
Directors on April 15, 2010.
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Signatures
  TRINITY BIOTECH PLCBy:
    RONAN OCAOIMHMr Ronan OCaoimhDirector/
Chief Executive Officer
Date: April 15, 2010By:
    KEVIN TANSLEYMr Kevin TansleyCompany secretary/
Chief Financial Officer
Date: April 15, 2010  130




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Item 19
 Exhibits
 Exhibit No.
    
    Description of Exhibit4
    
    Employee Share Option Plan12.1
    
    Certification by Chief Executive Officer Pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002.12.2
    
    Certification by Chief Financial Officer Pursuant to Section 302 of the
Sarbanes- Oxley Act of 2002.13.1
    
    Certification by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, As
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.13.2
    
    Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, As
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.15.1
    
    Consent of Independent Registered Public Accounting Firm (GT)15.2
    
    Consent of Independent Registered Public Accounting Firm (KPMG)
  131