security research group plc 
annual report and accounts 2013 
  business review
security research group at a glance                                               1
financial performance summary                                                       2
chairman’s statement                                                                          3
ceo’s update                                                                                         4
specialist electronics                                                                            5
property information services                                                            7
packaging solutions                                                                              7
corporate governance
directors secretary and advisors 9
directors’ report 10
corporate governance 13
independent auditors’ report 14
financial statements
consolidated income statement                                                      15
consolidated statement of comprehensive income                    15
statements of changes in equity                                                     16
consolidated statement of financial position                               17
company statement of financial position                                      18
statements of cash flows                                                                 19
note to the statements of cash flows                                            20
notes to the financial statements                                                   21
notice of annual general meeting                                                  38
index
229432 security research ar pp01pp07  24072013  1043  page i quality is never an accident
it is always the result of high intention sincere effort
intelligent direction and skilful execution
the specialist electronics division
is the principal business of
security research group plc it has
been a market leader in the
design development and
manufacture of innovative audio
surveillance technical counter
surveillance and security products
for over 35 years under the
audiotel brand
completing a £50 million uk
armed forces’ contract on time
and within budget for the design
and supply of a product which has
a world beating performance and
reflects the division’s exceptional
level of skill expertise and
commitment 
the continuing focus for the specialist electronics division is to track
ever‐changing threats globally to identify through continuous
research and development appropriate countermeasures and to
provide market leading solutions that stay one step ahead of the field
the property information services division supplies a comprehensive
range of residential and commercial property information reports to
legal and conveyancing professionals in england and wales 
the packaging solutions division provides flexible packaging solutions
to a variety of industry sectors including the food and
pharmaceutical markets
security research group plc annual report and accounts 2013 1
security research group at a glance
sb nljd range lightweight powerful
detection of concealed electronics
up to 10w
world’s first nljd archway for
protection of intellectual property
ieds often contain
electronic components
229432 security research ar pp01pp07  23072013  1548  page 1                                                                                   2013       2012
                                                                                  £’000      £’000
            specialist electronics                                6765    11635
            property information services                    152         744
            packaging solutions                                      302         273
            head office                                                   616       660
            operating profit                                        6603    11992
            underlying earnings per share            2324p    3575p
            basic earnings per share                       1589p    1976p
security research group plc annual report and accounts 2013 2
financial performance summary
229432 security research ar pp01pp07  23072013  1548  page 2 another year of strong turnover and excellent profit figures have been
achieved although slightly down on last year this year’s turnover at
£29363893 and last year’s at £37272645 were substantially better than
historical levels
profit before tax and exceptional items for the year was £6682042 compared
with a profit before tax and exceptional items of £12070793 in the prior year 
the substantial level of profits earned during the period is due to the
application of engineering manufacturing and sales techniques in supplying
world beating products
shareholders will no doubt have welcomed the £15191577 returned to them
through two share buy backs in the year which together with £3083155
returned to them in the previous year equates to  £18274732 amounting to
94p per share based on the 194 million shares currently in issue £54 million
cash was retained at the year end
a two year mod contract came to an end with all equipment delivered
approved and accepted by this exacting customer  product deployment in
december 2012 was a satisfying end to two years of dedicated work however
changes in operational requirements for overseas forces the impending
withdrawal of isaf forces from afghanistan and the change in tactics employed
by insurgents have resulted in a substantial reduction in the deployment of
our innovative and unique detector at present
the specialist electronics division has now been able to concentrate its
resource and effort on developing new products and markets and to place
emphasis on a global sales drive reference is made in the financial statements
to a number of innovative devices having unique selling points these products
are predominantly for use in non‐conflict situations and are being marketed
in the uk and in a number of other selected countries
at the annual distributor conference held in corby in april 2013 attended by
more than 30 distributors from across the globe these products were
launched and enthusiastically received  
property information services psg and packaging solutions moore  buckle
both had a profitable year 
we are grateful to the outstanding commitment and loyalty of our employees
who have been substantially responsible for the excellent achievements
the specialist electronics division is our main focus as it redevelops and re‐
energises its core marketplace supported by a dynamic marketing strategy
the positive response it is receiving from potential customers can be attributed
to the rapid and cooperative dovetailing of the sales and engineering teams
we look forward to reporting to shareholders the results of these initiatives in
due course
jonathan mervis chairman                                                                 23 july 2013
security research group plc annual report and accounts 2013 3
chairman’s statement
£183m
over two years
sum paid back to
shareholders
through share
tender offers
£54m
net cash held at
year end
2324p
underlying
earnings per share
229432 security research ar pp01pp07  23072013  1548  page 3 specialist electronics
the past year has seen changes to the senior management team in the
specialist electronics division  
damian rowbotham previously finance director for comfortdelgro’s uk 
ireland businesses joined us in april 2012 as the managing director of audiotel
international in addition barney hubble who was critical to the success of the
recent mod contract was appointed to the board as business development
director during the year  
julie brown resources director retired after 17 years dedicated service to
audiotel and in recent months debbie braybrook finance director has moved
on to pastures new as part of a major re‐organisation of the team  
we now have a stronger more broadly experienced and focussed sales team
moving forward which under the direction of the new senior management
team will bring the recently launched products to the global marketplace in
the current year
during the mod contract we operated from two separate premises in corby
but have recently merged all our operations in one centre  this provides a
fully modern well equipped factory and office complex ready to take on the
new challenges that will be presented in the years to come
the end of the mod contract has seen serious downsizing of the production
team and i would like to take the opportunity to thank all those staff who were
employed with us for their dedicated service during the last two years
property information services
the psg team based in barnsley south yorkshire have performed well under
the supervision of andrea glover managing director in a very challenging
marketplace
the psg franchisee network continues to promote and market a
comprehensive selection of legal reports and services under the online psg
connect banner  the unique combination of a truly national supplier with a
‘local’ service is the envy of its competitors  
packaging solutions
the small moore  buckle team based in st helens have remained stable and
continue to perform profitably in a niche marketplace
bernie connor chief executive                                                           23 july 2013
security research group plc annual report and accounts 2013 4
ceo’s update
£294m
consolidated
group revenue
£66m
operating profit
before exceptional
items
522
gross margin
229432 security research ar pp01pp07  23072013  1548  page 4 overview
2013 was a year of two distinct parts for the specialist electronics division
the first part was all about delivery when the entire division and in particular
the production and technical teams rose to the challenge of successfully
delivering the mod contract on time and on budget  the second part was
focused on raising the company and brand profile achieved through sales and
marketing activity and a raft of new product releases the rebranding activity
and product innovation were very well received by our distribution network
and customer base turnover for the year was £23566245 compared with
£31281262 in the prior year the operating profit before exceptional items
for the year was £6765220 compared with  an operating profit  before
exceptional items of £11635491 in the prior year
product and technical leadership
the conclusion of the mod contract during the year allowed the technical
team to focus their expertise on new product development the results have
been especially pleasing with our latest releases being not only world beating
in terms of performance but also unique in their application our nljd
archway for electronics detection a world first has attracted a great deal of
interest most significantly in asia and eastern europe our new portable
meeting guard released earlier this year provides 247 real‐time protection
from eavesdropping with remote monitoring if required and once again is a
unique proposition generating a great deal of interest we have a clear
roadmap for technical development with a range of innovative products in the
pipeline which we are extremely excited about and we continue to invest in
focused research to help preserve technical leadership in our field
manufacturing excellence
quality remains at the heart of our business and our global reputation has
certainly been strengthened through our work with the uk government
following contract completion the production team numbers were reduced
but fortunately we were able to retain the most skilled and flexible staff for
the business going forward our capability has been substantially enhanced
over the last few years with both facilities and skills markedly better  we now
boast the flexibility to be able to manufacture both highly complex low volume
electronic products and high volume batches as required 
sales development 
one of our recent goals was to raise the division’s profile globally this activity
commenced in earnest with a rebranding exercise new marketing collateral and
importantly a refreshed website these were successfully launched to our global
network of distributors in april 2013 together with our latest products and
technical roadmap the distribution network has been energised by the speed
and quality of product development activity and also welcomed our increased
dynamism in supporting their sales efforts
security research group plc annual report and accounts 2013 5
specialist electronics
£68m
operating profit
35
distributors
representing
audiotel
worldwide
1089
no of individual
electronic
components that
make up an sb4
229432 security research ar pp01pp07  23072013  1548  page 5 enhanced sb range of nljds
effectively locating concealed electronic devices
the new superbroom sb range is our latest advance in lightweight powerful
non‐linear junction detector nljd technology
a versatile device which incorporates the best elements from our 35 years of
developing nljds sb is available in a range of output powers 2w  4w and 10w 
an explosive ordnance disposal eod variant is also available which
incorporates a metal detector for increased target detection and discrimination
archway
detecting concealed items 
the archway is the future in intellectual property theft protection specifically
designed using the advanced technology of non‐linear junction detection it
is able to detect concealed devices even if they are turned off
suitable for detecting a wide range of electronic components and devices
including mobile phones sim cards usb memory sticks listening and recording
devices or cameras
the archway can be used as a conventional security‐style archway or for a more
discreet approach it can be supplied as a single panel the versatility of the
archway makes it an essential part of your security
meeting guard
meeting room protection
the meeting guard provides a flexible solution for keeping meeting rooms
office and public areas safe from eavesdropping  providing real‐time protection
from active devices as well as transmission from store and forward devices
the meeting guard benefits from a compact and portable design that allows it
to be deployed easily with no additional infrastructure and minimal training
security research group plc annual report and accounts 2013 6
specialist electronics new products
229432 security research ar pp01pp07  23072013  1548  page 6 review
turnover for the property information services division for the year was
£4234208 compared with £4576410 in the previous year  the operating profit
before exceptional items for the year was £152244 compared with an operating
profit before exceptional items of £743503 for the previous year a goodwill
impairment  charge of £1416694 was incurred in the year which in addition
to the £3537539 incurred in the previous year reflects the fact that housing
transactions are unlikely to return to historic levels for some considerable time 
property search group and its network of franchisees continue to work in
harmony presenting a nationwide brand revered and respected by the legal
community there have been substantial improvements to the online ordering
platform that consistently scores top marks with psg’s clients when compared
to other platforms supplied by its competitors  in addition internal it systems
across the network have been updated to provide seamless end‐to‐end delivery
of products that have improved service to clients decreased administration
tasks added additional quality controls and increased efficiency  
review
moore  buckle remained a stable consistent performer in a very specialist
marketplace
turnover for the year was £1563440 compared with £1414973 in the previous
year the operating profit before exceptional items for the year was £301947
compared with an operating profit before exceptional items of £272725 in the
previous year a goodwill impairment charge of £287058 was incurred in the
year which in addition to £600000 incurred in the previous year reflects a
harsher business climate for this sector of the marketplace
security research group plc annual report and accounts 2013 7
property information services
packaging solutions
229432 security research ar pp01pp07  23072013  1548  page 7 security research group plc annual report and accounts 2013 8
corporate governance

financial statements
229432 security research ar pp08pp14  23072013  1550  page 8 security research group plc annual report and accounts 2013 9
directors secretary and advisors 
directors
jonathan philip mervis
chairman 
john arthur warwick fca
finance director
tweedie mcgarth brown cbe
deputy chairman
bernard cavan connor
chief executive 
john david gawain holme fca
non‐executive director
all of whose business address is
133 ebury street london sw1w 9qu
registered office
133 ebury street
london sw1w 9qu
company secretary
john arthur warwick fca
auditors
milsted langdon llp
chartered accountants
winchester house
deane gate avenue
taunton
somerset ta1 2uh
registrars
capita registrars
the registry
34 beckenham road
beckenham
kent br3 4tu
nominated advisor and broker
w h ireland limited
24 martin lane
london ec4r 0dr
solicitors to the company
irwin mitchell llp
2 wellington place
leeds ls1 4bz
principal bankers
lloyds tsb bank plc 
corporate markets
1st floor
25 gresham street
london ec2v 7hn
229432 security research ar pp08pp14  23072013  1550  page 9 security research group plc annual report and accounts 2013 10
directors’ report
the directors present herewith their annual report and the audited financial statements for the year ended 31 march 2013
principal activities
the principal activities of the group are those of the manufacture and sale of specialist electronic equipment the sale and
operation of property search franchises together with the provision of other property information services and the manufacture of
flexible packaging products
business review 
the business review forms part of the directors’ report the principal activities of the group the business review and future
developments are all described in the chairman’s statement the ceo’s update and divisional reports 
results
the group’s consolidated income statement for the year is set out on page 15 of the financial statements
principal risks and uncertainties facing the group
as far as our specialist electronics business is concerned turnover is generated from a mix of small and large orders the timing of
the order placement and delivery of larger orders is inherently difficult to predict potentially causing material fluctuations in actual
results compared with expectations 
if the current situation in the property market changes it could affect the results of our property information business either
beneficially or detrimentally  
our packaging solutions business depends on small orders and could be affected by any change in the economic environment 
dividends
the directors do not recommend payment of a dividend having already returned over £15m to shareholders during the year
research and development
audiotel international limited continues its policy of investment in research and development in order to retain a competitive
position in its market
purchase of own shares
purchase of own shares during the year is referred to in the chairman’s statement and note 22 of the financial statements
directors and their interests
the directors of the company during the financial year were
j p mervis 
j a warwick 
t m brown 
b c connor 
j d g holme 
contracts for directors’ services and emoluments
the principal terms of the contracts entered into by directors for the provision of their services are summarised below
                               effective date of contract                                                current annual     notice period director’s
                                                                                                                               remuneration                              position
                                                                                                                                                     £                              
j p mervis             5 january 2006 as subsequently amended                              120000           12 months chairman
j a warwick          5 january 2006 as subsequently amended                              120000           12 months finance director
t m brown            10 january 2005 as subsequently amended                              20000             3 months deputy chairman
b c connor           13 march 2012                                                                              150000           12 months chief executive
j d g holme         4 april 2008 as subsequently amended                                      20000               1 month non‐executive director
mr b c connor is entitled to an annual performance bonus if group operating profit targets are achieved
229432 security research ar pp08pp14  23072013  1550  page 10 substantial shareholders
on 18 july 2013 the company’s register of shareholders showed the following interests in 3 or more of the company’s issued share
capital
20p ordinary
shares 
hawk investment holdings limited 3558329 1832
j p  mervis 2795945 1439
artemis investment management limited 1830902 942
groundlinks limited 1437882 740
seraffina holdings limited 1367734 704
retro grand limited 1247319 642
j r davie 611714 315
directors’ shareholdings
on 18 july 2013 the directors had the following interests in the company’s issued share capital
20p ordinary
shares 
j p  mervis 2795945 1439
b c connor 449657 231
j d g holme 261329 135
j a warwick 255132 131
t m brown 206837 106
payment of creditors
the group’s policy in relation to all of its suppliers is to agree payment terms with individual suppliers in advance and ensure that
these suppliers are aware of those terms and abide by such terms 
the group’s payment days as at 31 march 2013 for trade creditors were 40 days 2012 48 days
the environment 
the group regards compliance with relevant environmental laws and the adoption of responsible standards as integral to its
business operation it is also committed to introducing measures to limit any adverse effects its business may have on the
environment and will promote continuous improvement in accordance with the best available techniques 
financial risk management
the principal financial risks to which the group is exposed relate to liquidity and credit the policies and strategies for managing
these risks are summarised as follows
a liquidity risk
the group actively maintains sufficient funds for current operations and planned expansions
b credit risk
credit risk refers to the risk that a counterparty will default on contractual obligations resulting in a financial loss to the group the
group has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating financial risks from defaults
nevertheless risk has increased due to the current economic circumstances
the group’s principal financial assets are bank balances cash and trade receivables the group has no significant concentration of
credit risk with exposure spread over a large number of customers credit risk is managed by monitoring the aggregate amount and
duration of exposure to any one customer depending upon their credit rating the amounts presented in the statement of financial
position are net of allowances for doubtful debts estimated by the group’s management based on prior experience and their
assessment of the current economic environment 
security research group plc annual report and accounts 2013 11
directors’ report
229432 security research ar pp08pp14  23072013  1550  page 11 directors’ indemnities
the group has taken out third party indemnity insurance for the benefit of the directors during the year which remains in force at
the date of this report
directors’ responsibilities
the directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and
regulations
the directors are required under company legislation to prepare financial statements for each financial year under that law the
directors have elected to prepare the group and company financial statements in accordance with international financial reporting
standards ifrss as adopted by the european union under company law the directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of affairs of the group and company and the group’s profit or
loss for that year in preparing these financial statements directors are required to
•        select suitable accounting policies and then apply them consistently
•        make judgements and accounting estimates that are reasonable and prudent
•        state whether applicable ifrss as adopted by the european union have been followed subject to any material departures
disclosed and explained in the financial statements and
•        prepare the financial statements on a going concern basis unless it is inappropriate to presume that the group will continue in
business
the directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s
transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and to enable
them to ensure that the financial statements comply with the companies act 2006 they are also responsible for safeguarding the
assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities 
the directors have reasonable expectations that the group has adequate resources to continue in operational existence for the
foreseeable future for this reason they continue to adopt the going concern basis in preparing the financial statements
the directors are responsible for ensuring that the annual report includes information required by the aim rules 
the maintenance and integrity of the corporate and financial information on the group’s website is the responsibility of the
directors legislation in the united kingdom governing the preparation and dissemination of financial statements may differ from
legislation in other jurisdictions
the board’s statement on corporate governance is set out on page 13
auditors
a resolution proposing that milsted langdon llp be re‐appointed as auditors of the company will be put to the annual general
meeting
there is no relevant audit information of which the company’s auditors are unaware and the directors have taken all the steps that
they ought to have taken to make themselves aware of any relevant audit information and to establish that the company’s auditors
are aware of that information
by order of the board
john warwick
company secretary
23 july 2013 
security research group plc annual report and accounts 2013 12
directors’ report
229432 security research ar pp08pp14  23072013  1550  page 12 being a company whose shares are admitted to aim the company is not a listed company and therefore is not required to comply
with the uk corporate governance code the board has however adopted the following
board committees
the board has two sub‐committees the audit committee and the remuneration committee both of which include the finance
director
audit committee
the audit committee is chaired by j d g holme fca with its other member being j a warwick fca any director may attend by
invitation the external auditors may be invited to attend the meetings and have direct access to members of the committee the
audit committee may examine any matters relating to the financial affairs of the group including reviews of the annual and interim
financial statements announcements internal control procedures and accounting policies 
remuneration committee
the remuneration committee which is chaired by j d g holme fca reviews the performance of the executive directors considers
and approves all board and senior executive appointments remuneration and benefits including share options and service
contracts j a warwick fca is the other member of the committee
internal financial control
the directors are responsible for the group’s system of internal financial control a system can only provide reasonable and not
absolute assurance regarding
•        the safeguarding of assets against unauthorised use or disposition
•        the minimisation of risk of material loss whilst in pursuit of the group’s business objectives and 
•        the maintenance of proper accounting records and the reliability of financial information within the business or for
publication
due to the size of the group a key control procedure during the year was the close day‐to‐day supervision by the executive
directors
auditor independence
the audit committee reviews the services provided by the external auditors at least on an annual basis this review includes
consideration of the confirmation of independence which the external auditors provide to the company on an annual basis and of
the services which they provide to the group in order to ensure that their independence is not compromised
relations with shareholders
the directors seek to ensure that all shareholders are kept informed about the group and its activities a comprehensive annual
report and financial statements and an interim report are sent to shareholders and there is frequent dialogue with institutional
investors the annual general meeting provides shareholders with the opportunity to meet and question directors details of the
resolutions to be proposed at the annual general meeting to be held on 29 august 2013 are set out in the notice of annual
general meeting which is attached to this report
going concern
the directors consider after making appropriate enquiries that the company and group have adequate resources to continue in
operational existence for the foreseeable future for this reason they continue to adopt the going concern basis in preparing the
financial statements 
security research group plc annual report and accounts 2013 13
corporate governance
229432 security research ar pp08pp14  23072013  1550  page 13 we have audited the financial statements of security research group plc for the year ended 31 march 2013 which comprise the
consolidated income statement the consolidated statement of comprehensive income the group and parent company
statements of changes in equity the group and parent company statements of financial position the group and parent company
statements of cash flows and the related notes the financial reporting framework that has been applied in their preparation is
applicable law and international financial reporting standards ifrss as adopted by the european union and as regards the parent
company financial statements as applied in accordance with the provisions of the companies act 2006 
this report is made solely to the company’s members as a body in accordance with chapter 3 of part 16 of the companies act
2006 our audit work has been undertaken so that we might state to the company’s members those matters we are required to
state to them in an auditors’ report and for no other purpose to the fullest extent permitted by law we do not accept or assume
responsibility to anyone other than the company and the company’s members as a body for our audit work for this report or for
the opinions we have formed
respective responsibilities of directors and auditors
as explained more fully in the directors’ responsibilities statement set out on page 12 the directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view our responsibility is to audit and
express an opinion on the financial statements in accordance with applicable law and international standards on auditing uk and
ireland those standards require us to comply with the auditing practices board’s ethical standards for auditors 
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable
assurance that the financial statements are free from material misstatement whether caused by fraud or error this includes an
assessment of whether the accounting policies are appropriate to the group’s and parent company’s circumstances and have been
consistently applied and adequately disclosed the reasonableness of significant accounting estimates made by the directors and
the overall presentation of the financial statements in addition we read all the financial and non‐financial information in the
directors’ report to identify material inconsistencies with the audited financial statements if we become aware of any apparent
material misstatements or inconsistencies we consider the implications for our report
opinion on financial statements
in our opinion
–        the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at
31 march 2013 and of the group’s profit for the year then ended 
–        the group financial statements have been properly prepared in accordance with ifrss as adopted by the european union 
–        the parent company financial statements have been properly prepared in accordance with ifrss as adopted by the european
union and as applied in accordance with the provisions of the companies act 2006 and
–        the financial statements have been prepared in accordance with the requirements of the companies act 2006
opinion on other matters prescribed by the companies act 2006
in our opinion the information given in the directors’ report for the financial year for which the financial statements are prepared is
consistent with the financial statements 
matters on which we are required to report by exception
we have nothing to report in respect of the following
under the companies act 2006 we are required to report to you if in our opinion
–        adequate accounting records have not been kept by the parent company or returns adequate for our audit have not been
received from branches not visited by us or
–        the parent company financial statements are not in agreement with the accounting records and returns or
–        certain disclosures of directors’ remuneration specified by law are not made or 
–        we have not received all the information and explanations we require for our audit
mr nigel fry senior statutory auditor
for and on behalf of  milsted langdon llp
chartered accountants and statutory auditors
taunton
23 july 2013
security research group plc annual report and accounts 2013 14
independent auditors’ report to the members of security research group plc
for the year ended 31 march 2013
229432 security research ar pp08pp14  23072013  1550  page 14 security research group plc annual report and accounts 2013 15
consolidated income statement
for the year ended 31 march 2013
2013 2012
note £ £
revenue 2 29363893 37272645
cost of sales 14045747 16733938
gross profit 15318146 20538707
administrative expenses 8715130 8547204
operating profit before exceptional items 6603016 11991503
exceptional administrative expenses 3 1703752 4137539
operating profit 4 4899264 7853964
finance costs 8 10929 –
finance income 9 89955 79290
profit on ordinary activities before taxation 4978290 7933254
income tax expense 10 1295735 2823233
profit on ordinary activities after taxation 3682555 5110021
basic earnings per share 12 1589p 1976p
diluted earnings per share 12 1574p 1957p
the consolidated income statement has been prepared on the basis that all operations are continuing operations 
consolidated statement of comprehensive income
for the year ended 31 march 2013
the profit on ordinary activities after taxation represents the group’s total comprehensive income for the year
the notes on pages 21 to 37 form part of these financial statements 
229432 security research ar pp15pp20  23072013  1551  page 15 security research group plc annual report and accounts 2013 16
statements of changes in equity
for the year ended 31 march 2013
capital
share share redemption retained
capital premium reserve earnings total equity
group £££££
at 1 april 2011 5506648 5250 – 10927975 16439873
issue of new ordinary shares on exercise of options 267778 432222 – – 700000
purchase of ordinary share capital including costs 
of £71195 – – – 3083155 3083155
cancellation of own shares 626313 – 626313 – –
total comprehensive income for the year – – – 5110021 5110021
at  31 march 2012 5148113 437472 626313 12954841 19166739
issue of new ordinary shares on exercise of options 76190 114286 – – 190476
purchase of ordinary share capital including costs 
of £127393 – – – 15191577 15191577
cancellation of own shares 1339038 – 1339038 – –
total comprehensive income for the year – – – 3682555 3682555
at  31 march 2013 3885265 551758 1965351 1445819 7848193
capital
share share redemption retained
capital premium reserve earnings total equity
company £££££
at  1 april 2011 5506648 5250 – 7465232 12977130
issue of new ordinary shares on exercise of options 267778 432222 – – 700000
purchase of ordinary share capital including costs 
of £71195 – – – 3083155 3083155
cancellation of own shares 626313 – 626313 – –
total comprehensive income for the year – – – 1859548 1859548
at  31 march 2012 5148113 437472 626313 6241625 12453523
issue of new ordinary shares on exercise of options 76190 114286 – – 190476
purchase of ordinary share capital including costs 
of £127393 – – – 15191577 15191577
cancellation of own shares 1339038 – 1339038 – –
total comprehensive income for the year – – – 9025624 9025624
at  31 march 2013 3885265 551758 1965351 75672 6478046
the notes on pages 21 to 37 form part of these financial statements 
229432 security research ar pp15pp20  23072013  1551  page 16 security research group plc annual report and accounts 2013 17
consolidated statement of ﬁnancial position
as at 31 march 2013
2013 2012
note ££ ££
non‐current assets 
goodwill 13 3273142 4976894
other intangible assets 14 627271 688357
property plant and equipment 15 411514 1581020
deferred tax asset 20 312101 125047
4624028 7371318
current assets
inventories 18 1189318 1312635
trade and other receivables 19 2721402 7222481
cash and cash equivalents 5397860 17268743
9308580 25803859
current liabilities
trade and other payables 21 5666328 11171152
current tax liability 418087 2837286
6084415 14008438
net current assets 3224165 11795421
net assets 7848193 19166739
represented by
capital and reserves attributable to equity holders
called up share capital 22 3885265 5148113
share premium account 551758 437472
capital redemption reserve 1965351 626313
retained earnings 1445819 12954841
total equity 7848193 19166739
approved by the board on 23 july 2013
jonathan mervis
director
john warwick
director
the notes on pages 21 to 37 form part of these financial statements  
229432 security research ar pp15pp20  23072013  1551  page 17 2013 2012
note ££ ££
non‐current assets
property plant and equipment 15 34379 36090
investments in subsidiaries 16 6650322 8354074
6684701 8390164
current assets
trade and other receivables 19 43802 15472
cash and cash equivalents 1097303 4896244
1141105 4911716
current liabilities
trade and other payables 21 1292760 848357
current tax payable 55000 –
1347760 848357
net current liabilitiesassets 206655 4063359
net assets 6478046 12453523
represented by
capital and reserves attributable to equity holders
called up share capital 22 3885265 5148113
share premium account 551758 437472
capital redemption reserve 1965351 626313
retained earnings 75672 6241625
total equity 6478046 12453523
approved by the board on 23 july 2013
jonathan mervis
director
john warwick
director
the notes on pages 21 to 37 form part of these financial statements 
security research group plc annual report and accounts 2013 18
company statement of ﬁnancial position
as at 31 march 2013
229432 security research ar pp15pp20  23072013  1551  page 18 group company
                                                                                                                                          2013                    2012                    2013 2012
                                                                                                                                                 £                          £                          £ £
cash flows from operating activities                                                                                                                                            
profit before taxation                                                                                           4978290           7933254           9080624 1859548
adjustments for
depreciation of property plant and equipment                                             1417963           1303116                  4749 6379
amortisation of goodwillinvestment write down                                          1703752           4137539           1703752 4137539
amortisation of other intangible assets                                                               533392              367196                          – –
profit on disposal of tangible assets                                                                        7485                2337                         – –
interest expense                                                                                                         10929                          –                          – –
interest receivable                                                                                                    89955              79290                9727 10963
dividends receivable                                                                                                            –                          –       10321530 6370260
changes in working capital                                                                                                                                                            
decreaseincrease in receivables                                                                    4501079         3148309             28330 2720
decreaseincrease in inventories                                                                        123317             163109                         – –
decreaseincrease in payables                                                                       5504824         8767987              444403 393138
cash generated from operations                                                                        7666458        19116047              873941 18101
interest paid                                                                                                               10929                         –                          – –
income tax paid                                                                                                   3901988           163799                         – –
net cash generated from operating activities                                                  3753541        18952248              873941 18101
cash flows from investing activities                                                                                                                                             
purchase of tangible assets                                                                                   287729        2052547                3038 847
purchase of other intangible assets                                                                     472306           559095                         – –
proceeds from the sale of tangible assets                                                              46757                74115                          – –
dividends received                                                                                                               –                          –        10321530 6370260
interest received                                                                                                         89955                79290                  9727 10963
net cash used ingenerated from investing activities                                    623323        2458237       10328219 6380376
cash flows from financing activities                                                                                                                                             
issue of share capital                                                                                               190476              700000              190476 700000
purchase of own shares                                                                                   15191577        3083155      15191577 3083155
net cash used in financing activities                                                              15001101        2383155      15001101 2383155
net decreaseincrease in cash and cash equivalents                               11870883       14110856         3798941 4015322
cash and cash equivalents at beginning of period                                        17268743           3157887           4896244 880922
cash and cash equivalents at end of period                                                     5397860        17268743           1097303 4896244
the notes on pages 21 to 37 form part of these financial statements
security research group plc annual report and accounts 2013 19
statements of cash ﬂows
for the year ended 31 march 2013
229432 security research ar pp15pp20  23072013  1551  page 19 analysis of net funds
                                                                                                                                                                            at                             at 
                                                                                                                                                                     1 april                    cash 31 march
                                                                                                                                                                       2012                     flow 2013
group                                                                                                                                                                   £                          £ £
                               
cash and cash equivalents                                                                                                             17268743       11870883 5397860
                                                                                                                                                            17268743       11870883 5397860
                                                                                                                                                                            at                             at
                                                                                                                                                                     1 april                    cash 31 march
                                                                                                                                                                       2012                     flow 2013
company                                                                                                                                                             £                          £ £
                               
cash and cash equivalents                                                                                                                4896244         3798941 1097303
                                                                                                                                                              4896244         3798941 1097303
the notes on pages 21 to 37 form part of these financial statements 
security research group plc annual report and accounts 2013 20
note to the statements of cash ﬂows
for the year ended 31 march 2013
229432 security research ar pp15pp20  23072013  1551  page 20 security research group plc annual report and accounts 2013 21
notes to the ﬁnancial statements
for the year ended 31 march 2013
1 accounting policies 
security research group plc company number 03170812 is domiciled and incorporated in england under the companies act 1985 
the financial statements have been prepared in accordance with applicable international financial reporting standards ifrss
international accounting standards ias and international financial reporting interpretations committee ifric interpretations
adopted for use by the european union eu and with those parts of the companies act 2006 applicable to companies reporting
under ifrss the financial statements have been prepared under the historical cost convention
there were no new standards or interpretations that have been adopted by the group in the current period
there are no interpretations and amendments to existing standards that have been issued but are not yet effective that will have a
material impact on the financial statements and have not been early adopted by the group 
the preparation of financial statements in accordance with ifrss requires management to make judgements estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities income and expenses although
these estimates are based on management’s best knowledge of the amount event or actions actual results ultimately may differ
from those estimates
the directors have used significant judgements relating to assumptions concerning goodwill 
the group is required to test at least annually whether goodwill has suffered any impairment the recoverable amount is
determined based on value in use calculations the use of this method requires the estimation of future cash flows and the choice
of a suitable discount rate in order to calculate the present value of these cash flows 
the following accounting policies have been used consistently in dealing with items which are considered material in relation to the
group’s financial statements
a consolidation
the consolidated financial statements include those of the company and its subsidiaries from their date of acquisition all
acquisitions of subsidiaries have been accounted for under the acquisition method of accounting
under section 408 of the companies act 2006 the company is exempt from the requirement to present its own income statement
b revenue
revenue represents amounts receivable for goods services and set up costs in respect of installation of production facilities net of
vat and discount and intra‐group transactions
revenue is recognised to the extent that it is probable that the economic benefits will flow to the group it can be reliably measured
and the following criteria are met
i sale of goods
sale of goods are recognised when risks and rewards of ownership of the goods have passed to the customer certain income is
recognised on a milestone basis subject to meeting the criteria as stated within the relevant contract
ii rendering of services
rendering of services are recognised in the accounting period in which the services are rendered by reference to completion of the
specific transaction
iii set up costs
set up costs are recognised evenly over the life of the relevant contract
229432 security research ar pp21pp40  23072013  1553  page 21 security research group plc annual report and accounts 2013 22
notes to the ﬁnancial statements
for the year ended 31 march 2013
1 accounting policies continued
c property plant and equipment
property plant and equipment is stated at cost less accumulated depreciation and impairment costs 
depreciation is provided to write‐off the cost less estimated residual value based on prices prevailing at the date of acquisition in
annual instalments over the estimated useful economic lives of the assets the depreciation rates used are as follows
freehold buildings 2 straight line
leasehold property straight line over the life of the leaselife of contract
fixtures fittings and equipment 15 ‐ 333 straight linelife of contract 
motor vehicles 25 ‐ 40 straight line 
d investments
investments in subsidiary companies are valued at cost less provision for diminution in value
e goodwill
goodwill represents the difference between the fair value of the consideration paid on the acquisition of a business and the fair
value of the identifiable net assets acquired 
goodwill arising on acquisitions is capitalised and subjected to annual impairment reviews any excess of goodwill over the value in
use of the underlying assets is written off to the income statement the directors consider that the goodwill has an infinite life
f foreign currency translation
items included in the financial statements are measured using the currency of the primary economic environment in which the
entity operates the ‘functional currency’ the financial statements are presented in pounds sterling which is the functional and
presentational currency
the group has foreign currency transactions arising from the sales and purchases by an operating subsidiary in a currency other
than the subsidiary’s functional currency under the group’s foreign exchange policy such transactions are recorded at the rate of
exchange prevailing at the transaction date 
assets and liabilities in foreign currencies are translated into sterling at the rate of exchange ruling at the end of the financial year
all exchange differences are dealt with in the income statement
g leasing
rentals payable under operating leases are charged against income on a straight line basis over the lease term
h deferred tax 
deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for
taxation and accounting purposes
the deferred tax balance has not been discounted
i liquid resources
liquid resources are defined as short term bank deposits and cash in hand
j development expenditure and web design costs
development expenditure and web design costs which meet the criteria for capitalisation shown as other intangible assets are
written off over the period for which they are estimated to benefit future profitability of the group but for no longer than 3 years
k inventories
inventories are stated at the lower of cost and net realisable value using the first in first out fifo cost basis costs include all
direct costs incurred in bringing the inventories to their present location and condition including where appropriate a proportion of
manufacturing overheads 
l pensions
the pension costs charged represent the contribution payable by the group in the year 
229432 security research ar pp21pp40  23072013  1553  page 22 security research group plc annual report and accounts 2013 23
notes to the ﬁnancial statements
for the year ended 31 march 2013
1 accounting policies continued
m share based payments
the group issues equity‐settled share based payments to certain directors equity‐settled share based payments are measured at
fair value excluding the effect of non market‐based vesting conditions at the date of grant the fair value determined at the grant
date of the equity‐settled share based payments is expensed on a straight‐line basis over the vesting period based on the group’s
estimate of shares that will eventually vest and with a corresponding adjustment to equity
fair value is measured by use of the black‐scholes option pricing model the expected life used in the model has been adjusted
based on management’s best estimate for the effects of non‐transferability exercise restrictions and behavioural considerations
2 segmental analysis
business analysis
                                                                                                             2013                                                                              2012
                                                                                                                          net operating                                                          net operating
                                                                                                    operating               assets                                        operating assets
                                                                         revenue        profitloss         liabilities            revenue         profitloss liabilities
                                                                                       £                          £                          £                          £                          £ £
specialist electronics                                23566245           6765220         1512271       31281262        11635491 3852455
property information services                  4234208              152244           2934992           4576410              743503 3994679
packaging solutions                                    1563440              301947           1964075           1414973              272725 2214121
head office                                                                   –             616395           936463                         –             660216 458349
                                                                     29363893           6603016           2450333        37272645        11991503 1897996
exceptional items                                                       –         1703752                         –                          –         4137539 –
                                                                     29363893           4899264           2450333        37272645           7853964 1897996
                                                                  –––––––––––––––––––––––––––                                   –––––––––––––––––––––––––––
interest bearing assets                                                                                         5397860                                                          17268743
                                                                                                                       –––––––––––––                                                        –––––––––––––
net assets                                                                                                               7848193                                                          19166739
                                                                                                                       –––––––––––––                                                        –––––––––––––
revenue of specialist electronics and packaging solutions is represented by the sale of goods and revenue of property information
services is represented by services rendered
the activities of the group are the manufacture and sale of specialist electronic equipment the sale and operation of property
search franchises and the manufacture of flexible packaging products 
the specialist electronics business had one customer 2012 one with revenue in excess of 10 of group revenue
229432 security research ar pp21pp40  23072013  1553  page 23 2 segmental analysis continued
net operating assets analysis
                                                                                                             2013                                                                              2012
                                                                                                                               segmental                                                          segmental
                                                                                                                          net operating                                                          net operating
                                                                      segmental         segmental               assets          segmental          segmental assets
                                                                              assets            liabilities           liabilities                assets             liabilities liabilities
                                                                                       £                          £                          £                          £                          £ £
specialist electronics                                  2151068         3663339        1512271         8449906       12302361 3852455
property information services                  4110925         1175933         2934992           5004475         1009796 3994679
packaging solutions                                    2237563             273488         1964075           2431689             217568 2214121
head office                                                        68542         1005005           936463               51561             509910 458349
                                                                       8568098         6117765         2450333        15937631       14039635 1897996
additions to non‐current assets and non‐cash expenses
                                                                                                             2013                                                                              2012
                                                                   additions to     depreciation                                    additions to     depreciation 
                                                                   non‐current                      and                                    non‐current                      and
                                                                              assets     amortisation       impairment                  assets      amortisation impairment
                                                                                       £                          £                          £                          £                          £ £
specialist electronics                                     536463         1750440                         –           2417224         1464795 –
property information services                     218334             159700        1416694             163580             169026 3537539
packaging solutions                                            2200               28981           287058               29991               27775 600000
head office                                                           3038                 4749                         –                      847                 6379 –
                                                                           760035         1943870        1703752         2611642         1667975 4137539
geographical information
the group operates in 4 main geographical areas although they are managed on a worldwide basis revenue is split as follows 
                                                                                                                                                                                                    2013 2012
                                                                                                                                                                                                           £ £
united kingdom                                                                                                                                                            28833233 36716527
asia and middle east                                                                                                                                                          226482 213796
europe                                                                                                                                                                                  241836 127427
other                                                                                                                                                                                       62342 214895
                                                                                                                                                                                         29363893 37272645
3 exceptional administrative expenses
                                                                                                                                                                                                    2013 2012
                                                                                                                                                                                                           £ £
goodwill impairment charge – property information services                                                                               1416694 3537539
goodwill impairment charge – packaging solutions                                                                                                    287058 600000
                                                                                                                                                                                           1703752 4137539
there is no tax effect of the above exceptional administrative expenses
security research group plc annual report and accounts 2013 24
notes to the ﬁnancial statements
for the year ended 31 march 2013
229432 security research ar pp21pp40  23072013  1553  page 24 4 operating profit
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
operating profit is stated after chargingcrediting
auditors’ remuneration
– audit                                                                                                                                                                             92180 91508
– tax services                                                                                                                                                                   4500 4605
depreciation                                                                                                                                                            1417963 1303116
amortisation of other intangible assets                                                                                                                 533392 367196
profit on disposal of fixed assets                                                                                                                                7485 2337
profitloss on exchange differences                                                                                                                              48 1756
operating lease rentals
– plant and machinery                                                                                                                                                 15206 –
– other assets                                                                                                                                                              427101 355026
exceptional administrative expenses – note 3                                                                                                  1703752 4137539
research and development                                                                                                                                      720018 523139
remuneration for audit services payable to milsted langdon llp amounted to £30000 2012 £30000 and tax compliance services
fees amounted to £2000 2012 £2000
the auditors’ remuneration for audit services includes £24665 2012 £24268 attributable to the audit of audiotel international
limited and security research limited £9090 2012 £8990 attributable to the audit of rochdale development company limited
and moore  buckle flexible packaging limited £24750 2012 £24750 attributable to the audit of psg franchising limited psg
yorkshire limited psg energy limited and psg financial services limited and £3675 2012 £3500 attributable to the audit of
ufford pcc limited subsidiaries of security research group plc which are not audited by the group’s principal auditors the
auditors’ remuneration for non‐audit services includes £2000 2012 £2000 payable to the auditors of audiotel international
limited and security research limited and £500 2012 £605 payable to the auditors of rochdale development company limited
and moore  buckle flexible packaging limited 
5 staff costs
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
staff costs are as follows
wages and salaries                                                                                                                                                 6626415 6118966
social security costs                                                                                                                                                   649224 672452
pension contributions                                                                                                                                                103716 68683
                                                                                                                                                                                    7379355 6860101
the average number of persons employed by the group including directors was
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                      number number
administration                                                                                                                                                                      22 22
production                                                                                                                                                                           153 120
research and development                                                                                                                                                12 10
sales and marketing                                                                                                                                                               6 6
                                                                                                                                                                                               193 158
security research group plc annual report and accounts 2013 25
notes to the ﬁnancial statements
for the year ended 31 march 2013
229432 security research ar pp21pp40  23072013  1553  page 25 6 pension costs
the group operates a defined contribution pension scheme in respect of its directors and employees the scheme and its assets are
held by independent managers the pension charge represents contributions due from the group and amounted to £103716 2012
£68683
7 directors’ remuneration
                                                                                                                                             pension               other                 2013                 2012
                                                                                            salary               bonus    contribution           benefits                 total                 total
                                                                                                    £                        £                        £                        £                        £                        £
executive directors
j p mervis                                                                      120000              40000                        –                        –           160000           170000
j a warwick                                                                  120000              25000                        –                        –           145000           150000
t m brown                                                                       20000              25000                1000                1084              47084              53924
b c connor                                                                    150000           550000                        –              15468           715468           762554
non‐executive directors
j d g holme                                                                    20000              10000                        –                        –              30000              32000
                                                                                        430000           650000                1000              16552        1097552        1168478
two directors j a warwick and t m brown exercised share options during the year 2012 j p mervis and b c connor 
the aggregate gains made by the exercise of share options in the year was £276190 2012 £63832
8 finance costs
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
interest on late payment of corporation tax                                                                                                          10929 –
9 finance income
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
bank interest                                                                                                                                                                 89955 79290
10 income tax expense
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
uk corporation tax at 24 2012 26                                                                                                              1522909 3025907
over‐provision in prior year                                                                                                                                      40120 32492
current tax expense                                                                                                                                                1482789 2993415
deferred tax credit                                                                                                                                                    187054 170182
                                                                                                                                                                                    1295735 2823233
security research group plc annual report and accounts 2013 26
notes to the ﬁnancial statements
for the year ended 31 march 2013
229432 security research ar pp21pp40  23072013  1553  page 26 10 income tax expense continued
the tax for the year is higher than the standard rate of corporation tax in the uk of 24 2012 26 the differences are explained
below
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
profit on ordinary activities before taxation                                                                                                      4978290 7933254
profit on ordinary activities multiplied by standard rate of corporation
tax in the uk of 24 2012 26                                                                                                                         1194790 2062646
effects of
expenses not deductible for tax purposes                                                                                                               72050 22708
depreciation less thanmore than capital allowances                                                                                       11722 20788
impairment charge not deductible for tax purposes                                                                                           384303 1075760
marginal rate relief and lower tax rate in other jurisdictions                                                                              11748 25053
research and development relief                                                                                                                          246403 236485
over‐provision in prior year                                                                                                                                      40120 32492
other tax adjustments                                                                                                                                                45415 64639
                                                                                                                                                                                    1295735 2823233
the group has a carried forward loss for capital gains purposes amounting to £2776540 2012 £2776540 
11 profit of parent company
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
profit on ordinary activities after taxation                                                                                                          9025624 1859548
12 earnings per share
basic earnings per share is calculated on the group profit after tax for the financial year of £3682555 2012 £5110021 and on
23173628 ordinary shares being the weighted average number of shares in issue in the year 2012 25865197 diluted earnings
per share is calculated on the group profit for the financial year and on 23401480 ordinary shares being the weighted average
number of shares in issue during the year adjusted to take account of shares under option 2012 26113614 
security research group plc annual report and accounts 2013 27
notes to the ﬁnancial statements
for the year ended 31 march 2013
229432 security research ar pp21pp40  23072013  1553  page 27 13 goodwill
group                                                                                                                                                                                          £
cost
at 1 april 2011                                                                                                                                                                           14627755
additions                                                                                                                                                                                    –
at 31 march 2012                                                                                                                                                                      14627755
additions                                                                                                                                                                                    –
at 31 march 2013                                                                                                                                                                     14627755
impairment
at 1 april 2011                                                                                                                                                                           5513322
charge for year                                                                                                                                                                          4137539
at 31 march 2012                                                                                                                                                                      9650861
charge for year                                                                                                                                                                          1703752
at 31 march 2013                                                                                                                                                                     11354613
net book value
at 31 march 2013                                                                                                                                                                     3273142
at 31 march 2012                                                                                                                                                                      4976894
goodwill acquired through acquisition has been allocated to individual cash generating units ‘cgus’ for impairment testing these
are independent income streams and represent the lowest level within the group at which the associated goodwill is monitored for
management purposes the carrying value of goodwill is as follows
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
specialist electronics                                                                                                                                                    73142 73142
property information services                                                                                                                              2000000 3416694
packaging solutions                                                                                                                                                1200000 1487058
                                                                                                                                                                                    3273142 4976894
cumulative goodwill written off against reserves is £11354613 2012 £9650861
goodwill written off during the year amounted to £1416694 2012 £3537539 relating to the goodwill of the property
information services business and £287058 2012 £600000 relating to the packaging solutions business in the case of property
information services this reflects the fact that the level of housing transactions are unlikely to return to their previous levels for
some considerable time and in the case of the packaging solutions business reflects the harsher climate for businesses in general 
goodwill is reviewed annually or when other events or changes in circumstances indicate that the carrying amount may not be fully
recoverable the recoverable amount of a cgu is determined based on value in use calculations these calculations use pre‐tax cash
flow projections based on financial budgets approved by management covering a five year period cash flows beyond this five year
period are extrapolated using a growth rate of up to 225 which does not exceed the long term average growth for the united
kingdom the key assumptions in these calculations are as follows    
–        the achievement of budgeted operating profit over the next 5 years 2012 5 years
–        a growth rate of up to 225 for the final 5 years 2012 225
–        the cash flows were discounted using a pre‐tax discount rate of 50 2012 50
security research group plc annual report and accounts 2013 28
notes to the ﬁnancial statements
for the year ended 31 march 2013
229432 security research ar pp21pp40  23072013  1553  page 28 13 goodwill continued
sensitivity analysis
the value in use calculations in respect of the property information services division is dependent on the budgeted number of
housing market property transactions being achieved if a reasonable change in the level of housing market property transactions
was realised namely a fall of 7 from those budgeted and all other variables remained stable the carrying value of the goodwill in
relation to the property information services division would not be further impaired 
the budgeted operating profit over the next 5 years assumes that the number of housing transactions increase from the present
level of 650000 per annum each 100000 increase in the level of housing transactions should benefit the operating profit by not
less than £150000 
the value in use calculations in respect of the packaging solutions division is dependent upon the budgeted sales being achieved if a
reasonable change in the level of sales was realised namely a fall of 16 from those budgeted and all other variables remained
stable the carrying value of the goodwill in relation to the packaging solutions division would not be further impaired 
14 other intangible assets
                                                                                                                                                             development     web design
                                                                                                                                                                             costs                costs                 total
group                                                                                                                                                                        £                        £                        £
cost
at 1 april 2011                                                                                                                                         1019401           417210        1436611
additions                                                                                                                                                      456164           102931           559095
disposals                                                                                                                                                     217011         145000         362011
at 31 march 2012                                                                                                                                    1258554           375141        1633695
additions                                                                                                                                                      361455           110851           472306
disposals                                                                                                                                                     221032           82245         303277
at 31 march 2013                                                                                                                                   1398977           403747        1802724
amortisation
at 1 april 2011                                                                                                                                            639675           300478           940153
charge for year                                                                                                                                            272701              94495           367196
disposals                                                                                                                                                     217011         145000         362011
at 31 march 2012                                                                                                                                       695365           249973           945338
charge for year                                                                                                                                            431481           101911           533392
disposals                                                                                                                                                     221032           82245         303277
at 31 march 2013                                                                                                                                       905814           269639        1175453
net book value
at 31 march 2013                                                                                                                                       493163           134108           627271
at 31 march 2012                                                                                                                                       563189           125168           688357
the components of other intangible assets are £493163 in respect of development costs for the specialist electronics business
segment and £134108 in respect of web design costs for the property information services business segment other intangible
assets are amortised on a straight line basis at 333 per annum all other intangible assets are internally generated in the
consolidated income statement the amortisation charge is included within administrative expenses
security research group plc annual report and accounts 2013 29
notes to the ﬁnancial statements
for the year ended 31 march 2013
229432 security research ar pp21pp40  23072013  1553  page 29 15 property plant and equipment 
                                                                                                                                                                      fixtures
                                                                                                        freehold land        leasehold      fittings and              motor
                                                                                                         and buildings          property      equipment            vehicles                 total
group                                                                                                                   £                        £                        £                        £                        £
cost
at 1 april 2011                                                                                        190474              86724        1243845           241898        1762941
additions                                                                                                              –           899962        1027217           125368        2052547
disposals                                                                                                              –                        –              2590         132228         134818
at 31 march 2012                                                                                  190474           986686        2268472           235038        3680670
additions                                                                                                              –           116713              66541           104475           287729
disposals                                                                                                              –                        –            10790           88714           99504
at 31 march 2013                                                                                  190474        1103399        2324223           250799        3868895
depreciation 
at 1 april 2011                                                                                          27411              47347           705825              78991           859574
charge for year                                                                                           4071           529016           707217              62812        1303116
disposals                                                                                                              –                        –              1970           61070           63040
at 31 march 2012                                                                                     31482           576363        1411072              80733        2099650
charge for year                                                                                           4071           495736           848936              69220        1417963
disposals                                                                                                              –                        –            10403           49829           60232
at 31 march 2013                                                                                    35553        1072099        2249605           100124        3457381
net book value
at 31 march 2013                                                                                  154921              31300              74618           150675           411514
at 31 march 2012                                                                                  158992           410323           857400           154305        1581020
                                                                                                                                                                                                 fixtures
                                                                                                                                                                    leasehold      fittings and
                                                                                                                                                                      property      equipment                 total
company                                                                                                                                                                  £                        £                        £
cost
at 1 april 2011                                                                                                                                               59052              35656              94708
additions                                                                                                                                                                  –                   847                   847
at 31 march 2012                                                                                                                                         59052              36503              95555
additions                                                                                                                                                                  –                3038                3038
at 31 march 2013                                                                                                                                         59052              39541              98593
depreciation 
at 1 april 2011                                                                                                                                               19676              33410              53086
charge for year                                                                                                                                                4038                2341                6379
at 31 march 2012                                                                                                                                         23714              35751              59465
charge for year                                                                                                                                                4039                   710                4749
at 31 march 2013                                                                                                                                         27753              36461              64214
net book value
at 31 march 2013                                                                                                                                         31299                3080              34379
at 31 march 2012                                                                                                                                         35338                   752              36090
security research group plc annual report and accounts 2013 30
notes to the ﬁnancial statements
for the year ended 31 march 2013
229432 security research ar pp21pp40  23072013  1553  page 30 16 investments in subsidiaries
company                                                                                                                                                                                    £
cost
at 1 april 2011                                                                                                                                                                           16500087
disposals                                                                                                                                                                                     –
at 31 march 2012                                                                                                                                                                      16500087
disposals                                                                                                                                                                                     –
at 31 march 2013                                                                                                                                                                     16500087
provision for impairment in value
at 1 april 2011                                                                                                                                                                           4008474
impairment charge                                                                                                                                                                   4137539
at 31 march 2012                                                                                                                                                                      8146013
impairment charge                                                                                                                                                                   1703752
at 31 march 2013                                                                                                                                                                     9849765
net book value
at 31 march 2013                                                                                                                                                                     6650322
at 31 march 2012                                                                                                                                                                      8354074
subsidiaries
                                                                                                                                                                                       number total
                                                                                                                                                                                     of shares £
audiotel international limited                                                                                                                                   69114 1432412
rochdale development company limited                                                                                                             357500 1442816
psg franchising limited                                                                                                                                                    180 3774094
ufford pcc limited                                                                                                                                                         1000 1000
patersons financial services limited                                                                                                                         40002 –
at 31 march 2013                                                                                                                                                                     6650322
security research group plc annual report and accounts 2013 31
notes to the ﬁnancial statements
for the year ended 31 march 2013
229432 security research ar pp21pp40  23072013  1553  page 31 17 subsidiary undertakings
the company holds 100 of the share capital and voting rights of the following companies
                                                                               nominal value
                                                                                         of issued
                                                                               ordinary share
                                                                                             capital                               date principal country of
name of subsidiary held directly                                            £                       acquired activity incorporation
rochdale development company limited                 357500               15 april 2004 holding company england
audiotel international limited                                       69114          31 january 2003 specialist electronics england
psg franchising limited                                                        180               25 june 2004 property information services england
patersons financial services limited                            40002            1 january 2005 insurance services england
psg financial services limited                                                 2           23 august 2005 non‐trading england
security research international limited                                1         19 october 2011 non‐trading england
psg solutions limited                                                                1               19 april 2005 non‐trading england
ufford pcc limited                                                             1000                11 may 2005 insurance services guernsey
held indirectly
moore  buckle flexible packaging limited                                         15 april 2004 flexible packaging england
audiotel uk limited                                                                             31 january 2003 non‐trading england
security research limited                                                                     31 january 2003 specialist electronics england
psg yorkshire limited                                                                             1 february 2006 property information services england
psg energy limited                                                                             6 september 2007 energy surveys england
chalenor legal services limited                                                          19 october 2009 non‐trading england
yorkshire home inspections limited                                                   19 october 2009 non‐trading england
moore  buckle flexible packaging limited is a wholly owned subsidiary of rochdale development company limited audiotel uk
limited and security research limited are wholly owned subsidiaries of audiotel international limited psg yorkshire limited psg
energy limited chalenor legal services limited and yorkshire home inspections limited are wholly owned subsidiaries of psg
franchising limited
18 inventories
                                                                                                                                                                                             2013 2012
group                                                                                                                                                                                        £ £
raw materials and consumables                                                                                                                             819078 832907
work in progress                                                                                                                                                         225123 363308
finished goods and goods for resale                                                                                                                       145117 116420
                                                                                                                                                                                    1189318 1312635
the cost of inventories recognised as an expense during the year was £8704788 2012 £11742769
security research group plc annual report and accounts 2013 32
notes to the ﬁnancial statements
for the year ended 31 march 2013
229432 security research ar pp21pp40  23072013  1553  page 32 19 trade and other receivables
                                                                                                                                                                                             2013 2012
group                                                                                                                                                                                        £ £
trade receivables
current unimpaired                                                                                                                                                2266292 6397258
overdue unimpaired                                                                                                                                                  198074 231603
less allowance for doubtful debts                                                                                                                          49745 63621
                                                                                                                                                                                       148329 167982
net trade receivables                                                                                                                                             2414621 6565240
prepayments and accrued income                                                                                                                          227198 239099
other receivables                                                                                                                                                          79583 418142
                                                                                                                                                                                    2721402 7222481
the above debtors fall due within one year
current unimpaired trade receivables represent amounts due from customers that are not overdue in accordance with specific
credit terms agreed with those customers
the age profile of trade receivables that are past due but not impaired is as follows
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
up to 60 days                                                                                                                                                                           – 15640
between 60 and 90 days                                                                                                                                             45543 16192
between 90 and 120 days                                                                                                                                                     – 123084
over 120 days                                                                                                                                                             102786 13066
                                                                                                                                                                                       148329 167982
the allowance for doubtful debts is based upon past default experience debts with customers in liquidation or receivership are fully
provided against the movement in the provision during the year was as follows
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
balance at 1 april                                                                                                                                                          63621 92907
net amounts written backwritten off in year                                                                                                      12060 47042
income statement creditedcharged in year                                                                                                       25936 17756
balance at 31 march                                                                                                                                                    49745 63621
                                                                                                                                                                                             2013 2012
company                                                                                                                                                                                  £ £
amounts owed by group undertakings                                                                                                                       9639 –
prepayments and accrued income                                                                                                                            34163 15472
                                                                                                                                                                                         43802 15472
the above debtors fall due within one year
security research group plc annual report and accounts 2013 33
notes to the ﬁnancial statements
for the year ended 31 march 2013
229432 security research ar pp21pp40  23072013  1554  page 33 20 deferred tax assetliability
                                                                                                                                                                                             2013 2012
group                                                                                                                                                                                        £ £
movement
at 1 april                                                                                                                                                                      125047 45135
credit in year                                                                                                                                                               187054 170182
at 31 march                                                                                                                                                                 312101 125047
credit in year
capital allowances                                                                                                                                                      198458 155466
other timing differences                                                                                                                                            11404 14716
                                                                                                                                                                                       187054 170182
the deferred tax asset is substantially in respect of capital allowances and is all in respect of the specialist electronics segment
the group holds losses for capital gains purposes amounting at 31 march 2013 to £2776540 2012 £2776540 no deferred tax
asset is recognised in respect of these capital losses 
21 trade and other payables
                                                                                                                                                                                             2013 2012
group                                                                                                                                                                                        £ £
current
trade payables                                                                                                                                                         1091331 4534776
other payables                                                                                                                                                              44187 42262
other taxes and social security                                                                                                                                368097 1543499
accruals and deferred income                                                                                                                              4162713 5050615
                                                                                                                                                                                    5666328 11171152
                                                                                                                                                                                             2013 2012
company                                                                                                                                                                                  £ £
current
trade payables                                                                                                                                                              20186 255
amounts owed to group undertakings                                                                                                                   349808 345500
other taxes and social security                                                                                                                                103590 95161
accruals and deferred income                                                                                                                                 819176 407441
                                                                                                                                                                                    1292760 848357
security research group plc annual report and accounts 2013 34
notes to the ﬁnancial statements
for the year ended 31 march 2013
229432 security research ar pp21pp40  23072013  1554  page 34 22 share capital
                                                                                                                                                       2013 2012
                                                                                                                                            number                        £           number                        £
authorised
ordinary shares of 20p each                                                                                     35000000        7000000      35000000        7000000
allotted and called up 
fully paid ordinary shares of 20p each                                                                   19426324        3885265      25740565        5148113
380952 2012 1338888 ordinary shares of 20p each with an aggregate nominal value of £76191 2012 £267778 were issued
during the year on exercise of share options and 6695193 2012 1505980 ordinary shares of 20p each with an aggregate nominal
value of £1339039 2012 £301196 were purchased during the year for a total consideration of £15191577 2012 £3083155
and cancelled
the directors received the following consideration in respect of their shares being purchased by the company j p mervis sold
1003993 2012 237562 ordinary shares receiving consideration of £2258984 2012 £475124 j a warwick sold 76611 2012
8733 ordinary shares receiving £172374 2012 £17466 t m brown sold 59183 2012 4456 ordinary shares receiving £133162
2012 £8912 b c connor sold 161454 2012 27777 ordinary shares receiving £363272 2012 £55554 and j d g holme sold
102569 2012 23641 ordinary shares receiving £230780 2012 £47282
23 share options
at 31 march 2013 share options were held by directors in respect of 460160 2012 841112 shares analysed as follows
name                                       1 april 2012     exercised in year    31 march 2013  option price per share exercisable
j a warwick                                    350000                  190476                 159524                                    50p 14022008 ‐ 14022016
t m brown                                      300000                  190476                 109524                                    50p 14022008 ‐ 14022016
t m brown                                        30000                                 –                   30000                                    72p 02042009 ‐ 02042017
b c connor                                      161112                                 –                 161112                                    72p 02042009 ‐ 02042017
options in respect of 380952 ordinary shares at a weighted average price of 500p were exercised during the year no options were
granted or lapsed during the year
it is the board’s intention to keep the number of options outstanding at no more than 10 of the issued share capital
share based payments
the options for directors were introduced in february 2006 and april 2007 options are granted with a fixed exercise price equal to
the market price of the shares under option at the date of grant the contractual life of an option is 5 years or 8 years following the
vesting period there are no reload features exercise of an option is dependent on continued employment options were valued
using the black‐scholes option‐pricing model no performance conditions were included in the fair value calculations the expected
dividends factored into the model are £nil the fair value per option granted and the assumptions used in the calculation are as
follows
                                                                                                                                                                                  grant date grant date
                                                                                                                                                                               2 april 2007 14 february 2006
share price at grant date                                                                                                                                                   72p 50p
exercise price                                                                                                                                                                      72p 50p
number of directors                                                                                                                                                               2 2
share options granted                                                                                                                                               330000 1278572
shares options remaining                                                                                                                                         191112 269048
vesting period                                                                                                                                                               2 years 2 years
expected volatility                                                                                                                                                             60 60
option life years                                                                                                                                                                 10 10
risk free rate                                                                                                                                                                   537 444
fair value per option                                                                                                                                                      262p 179p
security research group plc annual report and accounts 2013 35
notes to the ﬁnancial statements
for the year ended 31 march 2013
229432 security research ar pp21pp40  23072013  1554  page 35 23 share options continued
the expected volatility is based on historical volatility over the year preceding the grant of options the risk free rate of return is the
yield on zero‐coupon uk government bonds issued consistent with the assumed option life a reconciliation of option movements
over the year to 31 march 2013 is shown below
                                                                                                                                                                                             2013 2012
                                                                                                                                                                     number of shares number of shares
outstanding at 1 april                                                                                                                                                841112 2180000
granted                                                                                                                                                                                     – –
                                                                                                                                                                                       841112 2180000
exercised                                                                                                                                                                     380952 1338888
outstanding at 31 march                                                                                                                                         460160 841112
exercisable at 31 march                                                                                                                                            460160 841112
the weighted average option price at 31 march 2013 was 591p 2012 550p
the weighted average share price at the date of exercise was 1225p 2012 573p
the weighted average contract life of the options outstanding at 31 march 2013 was 40 months 2012 49 months
24 financial instruments
capital management
the group finances its operations through retained earnings and the management of working capital
financial risk management
the principal financial risks to which the group is exposed relate to liquidity and credit the policies and strategies for managing
these risks are summarised as follows
a liquidity risk
the group actively maintains sufficient funds for operations and planned expansions
b credit risk
credit risk refers to the risk that a counterparty will default on contractual obligations resulting in a financial loss to the group the
group has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating financial risk from defaults
nevertheless risk has increased due to the current economic circumstances 
the group’s principal financial assets are bank balances cash and trade receivables the group has no significant concentration of
credit risk with exposure spread over a large number of customers credit risk is managed by monitoring the aggregate amount and
duration of exposure to any one customer depending upon their credit rating the amounts presented in the statement of financial
position are net of allowances for doubtful debts estimated by the group’s management based on prior experience and their
assessment of the current economic environment the credit risk on liquid funds is limited because the counterparties are banks
with high credit ratings assigned by international credit rating agencies the directors consider that the maximum exposure of the
group to credit risk to be the current assets of the group excluding inventories
security research group plc annual report and accounts 2013 36
notes to the ﬁnancial statements
for the year ended 31 march 2013
229432 security research ar pp21pp40  23072013  1554  page 36 24 financial instruments continued
at 31 march 2013 the group had financial assets as follows
                                                                                                                                                                                             2013 2012
                                                                                                                                                                                                   £ £
cash at bank                                                                                                                                                             5397860 17268743
the rate of interest receivable on financial assets is variable
fair values of financial assets
the fair value is an amount at which a financial instrument could be exchanged in an arms length transaction between informed and
willing parties other than a forced or liquidation sale and excludes accrued interest
the fair value of cash deposits approximates to the carrying amount because of the short maturity of these instruments
25 financial commitments
the group leases various properties and other items under non‐cancellable operating lease agreements the total future minimum
lease payments under non‐cancellable operating leases are as follows
                                                                                                                                                       2013 2012
                                                                                                                                          land and               other          land and               other
                                                                                                                                           buildings                                    buildings
group                                                                                                                                              £                        £                        £                        £
within one year                                                                                                                214416                5526           233137                6058
in the second to fifth year                                                                                              435020                8478           499500              12301
after five years                                                                                                                  243000                        –           351000                        –
                                                                                                                                             892436              14004        1083637              18359
security research group plc annual report and accounts 2013 37
notes to the ﬁnancial statements
for the year ended 31 march 2013
229432 security research ar pp21pp40  23072013  1554  page 37 notice is given to all shareholders that the annual general meeting of security research group plc “the company” for 2013 will be
held at the offices of the company 133 ebury street london sw1w 9qu on 29 august 2013 at 12 noon for the transaction of the
following business resolutions 1 to 5 inclusive will be proposed as ordinary resolutions and resolutions 6 and 7 will be proposed as
special resolutions
ordinary business
1    to receive the company’s financial statements for the financial year ended 31 march 2013 together with the directors’ report
and the auditors’ report on those financial statements
2    to re‐appoint j p mervis as director of the company who retires under article 93 at the annual general meeting
3    to re‐appoint j a warwick as director of the company who retires under article 93 at the annual general meeting
4    to re‐appoint milsted langdon llp  chartered accountants and registered auditors as auditors of the company to hold office
from the conclusion of the meeting to the conclusion of the next meeting at which the accounts are laid before the company
and to authorise the directors to determine the auditors’ remuneration
special business
5    that the directors be generally and unconditionally authorised pursuant to section 551 of the companies act 2006 “the act”
to allot  relevant securities as defined in that section up to an aggregate nominal amount of £3114735 provided that
       51  this authority shall expire 15 months from the date of this resolution or at the company’s next annual general meeting if
earlier and 
       52  that the company may before such expiry make an offer or agreement which would or might require relevant securities to
be allotted after such expiry and the directors may allot relevant securities in pursuance of such an offer or agreement
notwithstanding that the authority conferred hereby has expired and that this authority shall be in substitution of all
previous authorities conferred upon the directors pursuant to the said section 551
6    that subject to the passing of resolution 5 above the directors be and they are hereby empowered pursuant to section 570 of
the act to allot equity securities as defined in section 560 of the act of the company for cash pursuant to the general
authority granted in resolution 5 above as if section 5611 of the act did not apply to any such allotment provided that this
power shall be limited to
       61  the allotment of equity securities in connection with or pursuant to an offer by way of rights open offer or other pre‐
emptive offer to the holders of ordinary shares and other persons entitled to participate therein in proportion to their
respective holdings subject to such exclusions or other arrangements as the directors may consider necessary or expedient
to deal with fractional entitlements or legal or practical problems under the laws of any territory or the regulations or
requirements of any regulatory authority or any stock exchange in any territory
       62  the allotment otherwise than pursuant to 61 above of equity securities up to an aggregate nominal amount of £777053
being approximately 20 of the issued ordinary share capital of the company
       and such power shall expire 15 months from the date of this resolution or at the company’s next annual general meeting if
earlier save that the company may before such expiry make an offer or agreement which would or might require relevant
securities to be allotted after such expiry and the directors may allot equity securities in pursuance of any such offer or
agreement notwithstanding that the power conferred by this resolution has expired 
7    that subject to passing the above resolutions 5 and 6 above the company be generally and unconditionally authorised for the
purpose of section 701 of the companies act 2006 to make market purchases within the meaning of section 6934 of the
companies act 2006 of ordinary shares of 20p each in the capital of the company ‘ordinary shares’ on such terms and in such
manner as the directors of the company may from time to time determine provided that
       71  the maximum number of ordinary shares hereby authorised to be purchased is 7770529 representing 40 of the
company’s issued ordinary share capital
       72  the amount paid for each such share shall not be more than 5 above the average of the middle market quotation for
ordinary shares as derived from the aim appendix to the daily official list of the london stock exchange plc for the 10
business days immediately preceding the date on which the contract for purchase is made and in any event not less than
20p per ordinary share and
       73  the authority herein contained shall expire in 15 months or at the conclusion of the next annual general meeting if earlier
provided that the company may before such expiry make a contract for the purchase of ordinary shares under the
authority which would or might be executed wholly or partly after the expiry of this authority and may make purchases of
ordinary shares in pursuance of such contract as if the authority hereby conferred had not expired
by order of the board
john warwick
company secretary
23 july 2013
133 ebury street
london
sw1w 9qu
security research group plc annual report and accounts 2013 38
notice of annual general meeting
for 2013
229432 security research ar pp21pp40  23072013  1554  page 38 notes
1 a member entitled to attend and vote at the meeting convened by the notice set out above may appoint a proxy to exercise all
or any of his rights to attend speak and vote instead of him a proxy need not be a member of the company a member may
appoint more than one proxy if each proxy is appointed to exercise the rights attaching to different shares held by the member
to appoint more than one proxy please contact the company’s registrars capita registrars the registry pxs 34 beckenham
road beckenham br3 4tu 
2 a form of proxy is provided to be effective the form of proxy must be received at the office of capita registrars pxs
34 beckenham road beckenham br3 4tu not less than 48 hours before the time fixed for the annual general meeting
completion of the form of proxy does not preclude a member from subsequently attending and voting at the meeting in person
if he or she so wishes
3 the register of interests of the directors and their families in the share capital of the company and copies of contracts of service
of directors with the company or with any of its subsidiary undertakings will be available for inspection at the registered office
of the company during normal business hours saturdays and public holidays excepted from the date of this notice until the
conclusion of the meeting
4 in accordance with regulation 41 of the uncertificated securities regulations 2001 only those members entered on the
company’s register of members not later than 48 hours before the date of the meeting or if the meeting is adjourned
shareholders entered on the company’s register of members not less than 48 hours before the time fixed for the adjourned
meeting shall be entitled to attend and vote at the meeting 
5 as at 18 july 2013 the company’s issued share capital comprised 19426324 ordinary shares of 20p each each ordinary share
carries the right to one vote at a general meeting of the company 
security research group plc annual report and accounts 2013 39
notice of annual general meeting
for 2013
229432 security research ar pp21pp40  23072013  1554  page 39  
 
 
 
 
uk made trusted  
the world over 
security research group plc 
 133 ebury street london sw1w 9qu 
    tel  44 020 7881 0800 
email  infosrgroupplccom                           
web  wwwsrgroupplccom 


Summary:
 specialist electronics
the past year has seen changes to the senior management team in the
specialist electronics division  
damian rowbotham previously finance director for comfortdelgro’s uk 
ireland businesses joined us in april 2012 as the managing director of audiotel
international in addition barney hubble who was critical to the success of the
recent mod contract was appointed to the board as business development
director during the year  
julie brown resources director retired after 17 years dedicated service to
audiotel and in recent months debbie braybrook finance director has moved
on to pastures new as part of a major re‐organisation of the team  
we now have a stronger more broadly experienced and focussed sales team
moving forward which under the direction of the new senior management
team will bring the recently launched products to the global marketplace in
the current year
during the mod contract we operated from two separate premises in corby
but have recently merged all our operations in one centre  this provides a
fully modern well equipped factory and office complex ready to take on the
new challenges that will be presented in the years to come
the end of the mod contract has seen serious downsizing of the production
team and i would like to take the opportunity to thank all those staff who were
employed with us for their dedicated service during the last two years
property information services
the psg team based in barnsley south yorkshire have performed well under
the supervision of andrea glover managing director in a very challenging
marketplace
the psg franchisee network continues to promote and market a
comprehensive selection of legal reports and services under the online psg
connect banner  the unique combination of a truly national supplier with a
‘local’ service is the envy of its competitors  
packaging solutions
the small moore  buckle team based in st helens have remained stable and
continue to perform profitably in a niche marketplace
bernie connor chief executive                                                           23 july 2013
security research group plc annual report and accounts 2013 4
ceo’s update
£294m
consolidated
group revenue
£66m
operating profit
before exceptional
items
522
gross margin
229432 security research ar pp01pp07  23072013  1548  page 4