anite plc
annual report and accounts 2012  63 consolidated cash ﬂow statement
 64 notes to the accounts
103 fiveyear summary
104 company balance sheet
105 company statement of changes 
in equity
106 company cash ﬂow statement
107 notes to the company accounts
other information
118 shareholder information
119 glossary of terms
120 advisers and ofﬁces
overview
01 anite
02 at a glance
04 chairman’s statement
our strategy and progress
06 chief executive’s review
08 our businesses
08 wireless
10 handset testing
14 network testing
18 travel
22 review of operations
26 financial review
30 group key performance indicators
31 principal risks and uncertainties
management and governance
34 directors
36 report of the directors
40 corporate governance report
46 remuneration report
56 report of the audit committee
financial statements
58 statement of directors’ responsibilities
59 independent auditors’ report group
60 consolidated income statement
60 consolidated statement of 
comprehensive income
61 consolidated statement of changes  
in equity
62 consolidated balance sheet overview
anite annual report and accounts 2012
overview
anite
anite plc an international software and solutions company operates in two discrete markets we provide 
device and network testing systems to the wireless market and reservation and ecommerce solutions to 
the leisure travel industry the success of both divisions is based on our comprehensive knowledge of the 
sectors and on our proprietary software and hardware products 
our 500 staff work with the world’s leading wireless and travel companies from our headquarters in the 
uk and from ofﬁces in 15 countries across europe the americas asia and the middle east our services 
which include implementation systems integration maintenance and managed services enable us to 
meet our customers’ needs and enable them to achieve their business objectives  anite annual report and accounts 2012
overview
02
this was an exceptional year for anite in terms of ﬁnancial results 
at the same time each of our businesses made signiﬁcant 
operational progress
the fundamental drivers for all of our businesses continue to be 
favourable each has good market positions products and people 
to pursue multiple growth opportunities
we have started the current year well ahead of last year  
and we are well placed to deliver sustainable organic growth
christopher humphrey 
chief executive
at a glance
nt
divisional structure
wireless travel
travel
anite sells systems to enable leisure travel 
companies to operate more efﬁciently 
in what is a highly pressurised market 
fewer companies are managing more 
travellers and are doing so under increasing 
cost constraints our technology directly 
addresses the industry’s core challenges 
– to reduce costs and increase productivity 
– while at the same time supporting 
improved customer service across a 
broader more ﬂexible product range
handset testing
anite sells systems that enable 
manufacturers to design efﬁcient chipsets 
and mobile devices and bring them to 
market quickly and costeffectively  
at a time when technology is advancing 
and the functionality of devices is becoming 
increasingly complex development and 
testing are critical our laboratorybased 
test systems not only enable manufacturers 
to certify their products against industry 
standards but also enable network 
operators to meet endcustomers’ quality 
expectations by ensuring that devices 
perform in reallife situations
network testing 
anite supplies systems that enable mobile 
network operators and manufacturers  
to manage their businesses effectively  
our range of nemobranded tools enables 
operators to collect and analyse data  
on network coverage and performance  
to check that networks are working as 
planned and to make sure that the quality 
of service meets customer expectations  03
overview
highlights
financial highlights adjusted¹
operating highlights1
statutory results
● proﬁt for the year of £180m 2011 £94m       ●    basic earnings per share up 97 to 65p 2011 33p       ●    diluted earnings per share up 94 to 60p 2011 31p
wireless travel
wireless revenue as a whole contributed 84 of group revenue 2011 79
 ● record rd investment up 32 to £170m 2011 £129m
handset testing
 ● strong growth for 2g3g up 29 
and lte 4g up 102 on the 
previous year lte 4g now 
represents 44 of handset 
testing’s revenue 2011 34
 ● revenue up 54 to £764m 2011 
£496m and operating proﬁt up 
115 to £215m 2011 £100m
 ● order intake up 33 to £794m 
2011 £596m closing order book 
£249m 2011 £217m
 ● signed multiyear contract with 
thomas cook group to implement 
com in uk and ireland
 ● revenue £201m 2011 £200m 
and operating proﬁt up 10 to 
£46m 2011 £42m
 ● closing order book £896m 
2011 £632m booktobill ratio 
23 2011 17
network testing
 ● invex products gaining traction 
benchmarking product launched  
at end of h1
 ● revenue up 8 to £260m 2011 
£24 1m and operating proﬁt down 
17 to £53m 2011 £64m
 ● order intake up 13 to £260m 
2011 £230m
1225
937
788
2012 2011 2010
revenue
£m
31
67
38
23
2012 2011 2010
diluted earnings per share
p
76
24
19
15
2012 2011 2010
operating margin

5
288
176
119
2012 2011 2010
operating profit
£m
64
170
129
126
2012 2011 2010
research and development
£m
32
1520
1166
823
2012 2011 2010
order intake
£m
30
1125
0735
065
2012 2011 2010
final dividend per share
p
53
1 adjusted results are for continuing operations before sharebased payments amortisation of acquired 
intangible assets restructuring costs other gains and losses and recycled hedge losses anite annual report and accounts 2012
overview
04
introduction
i am pleased to report that anite had an 
exceptional year in terms of its ﬁnancial 
results which comfortably exceeded the 
board’s expectations while the highlight of 
the year was handset testing’s particularly 
strong performance driven mainly by 
a signiﬁcant increase in revenue for lte 4g 
products each of our three businesses 
handset testing network testing and travel 
made signiﬁcant operational progress 
strategy and progress
we continue to make good progress with our 
strategy to position anite as a global leader 
in wireless test software and to take 
advantage of the opportunities that will 
emerge from the development and rollout 
of lte 4g technology 
the board believes that our wireless division 
operates in a longterm growth market 
which has high barriers to entry and relatively 
few major competitors this enables it to 
generate good proﬁt margins and returns 
on investments wireless contributed an 
increased proportion of total anite revenue 
– 84 2011 79 
our strategy for travel is to increase its 
longterm value as it changes its business 
model its com product is the only proven 
largescale reservation system on the market 
today and is at the beginning of a potential 
20year product life cycle it sits at the very 
heart of our customers’ businesses and offers 
them greater efﬁciency and reduced costs 
the addition in recent years of tui central 
europe and uk and thomas cook uk to 
travel’s expanding customer base represented 
signiﬁcant landmarks in strengthening and 
improving its market position and in building 
longterm revenue visibility 
in both divisions wireless and travel the 
board anticipates that the majority of growth 
will be organic it will come from underlying 
growth in their respective markets 
investment in their products to win market 
share and lengthy and cumulative product 
life cycles in addition the board is 
committed to maintaining market leadership 
by continuing to invest in rd
finally it is the board’s intention that we 
should maintain a strong ﬁnancial position 
to provide ﬁnancial ﬂexibility through 
a combination of retaining a net cash  
position while having access to appropriate 
bank facilities through a new ﬁveyear 
£20m revolving credit facility signed in 
october 2011
results summary 
the group’s results were well ahead of the 
previous year and both divisions reported 
strong underlying proﬁtability our wireless 
division as a whole reported an adjusted 
operating margin of 26 2011 22 while 
our travel division reported 23 2011 21 
overall group adjusted operating proﬁt was 
up 64 to £288m 2011 £176m on 
revenue up 31 to £1225m 2011 £937m 
adjusted diluted earnings per share were  
up 76 to 67p 2011 38p 
robust cash generation enabled us to 
maintain a strong ﬁnancial position at the  
year end net cash as at 30 april 2012 was 
£169m april 2011 £277m the reported 
anite reported strong results and made good progress  
in all three businesses in the year
clay brendish
chairman
chairman’s statement
466
340
290
211
322
230
596
260
794
2012 2011
  handset testing      network testing      travel
2010
1520
1166
823
order intake by business
£m  05
overview
we remain committed to ensuring we 
continue to improve our governance and 
processes and details on this are set out in 
the corporate governance report on pages  
40 to 45 the audit committee report 
on pages 56 and 57 and the remuneration 
committee report on pages 46 to 55
summary and outlook 
anite reported strong results and made good 
progress in all three businesses in the year 
in particular the lte 4g opportunity has 
added an additional layer to our expertise 
we are now a leading force in two signiﬁcant 
handset testing submarkets – 2g3g and 
lte 4g as a result handset testing is in a 
better position to take advantage of larger 
markets than in the past and is capable of 
achieving doubledigit revenue growth for 
the immediate future
based on the opportunities available to 
each of our businesses anite is well placed  
to deliver sustainable organic growth and 
increased shareholder value
clay brendish
chairman
2 july 2012
level of net cash followed the settlement on 
31 october 2011 of the £216m swap liability 
dividend
in recognition of the signiﬁcant growth in 
earnings per share over the past two years 
the board is recommending a signiﬁcantly 
increased ﬁnal dividend of 1125p per share 
an increase of 53 on the previous year 
2011 0735p per share this will result  
in a total dividend for the year of 150p per 
share a 43 increase on the previous year’s 
total dividend 2011 105p per share it is 
proposed that the ﬁnal dividend be paid on 
23 october 2012 to shareholders on the 
register at 28 september 2012
overall the board’s intention is to maintain 
a progressive dividend policy broadly in line 
with earnings growth and to retain strong 
dividend cover 
people
on behalf of the board i recognise that 
anite’s success in recent years has been  
built on the deep industry expertise of our 
committed and hardworking staff it is their 
knowhow and experience that keeps us at 
the forefront of our industries 
governance 
the board recognises the importance that 
good corporate governance and the highest 
standards of professional ethics have in 
achieving its goal of delivering shareholder 
value i am satisﬁed by the breadth and 
range of skills of the individual directors and 
am pleased that the board performance 
evaluation we undertook this year conﬁrmed 
that the board operates effectively
201
200
230
200
358
241
496
260
764
2012 2011
  handset testing      network testing      travel
2010
1225
937
788
revenue by business
£m
46
42
56
45
35
64
100
53
215
2012 2011
  handset testing      network testing      travel
2010
288
includes group costs 
of £26 million
176 
includes group costs 
of £30 million
119
includes group costs 
of £17 million
adjusted operating profit by business
£m anite annual report and accounts 2012
06
our strategy and progress
of handset testing revenue here customers 
invested in lte 4g equipment to support the 
early stages of the mandatory testing phase 
of lte 4g devices in addition they bought 
2g3g products to test the backwards 
compatibility of devices rather than using 
existing systems which they have tended to 
keep exclusively for 2g3g devices growth 
also came from our second major growth 
driver interoperability testing iot which 
also covers 2g3g and lte 4g overall sales 
of lte 4g technology products grew by 
102 to 44 of handset testing revenue 
helping drive overall handset testing revenue 
growth of 54 and more than doubling 
its operating proﬁts
in a highly technological market we further 
established our proprietary lte 4g hardware 
platform anite 9000 and continued to 
develop our products and strategy to support 
the next generation of mobile technology 
beyond lte 4g to lteadvanced ltea 
which we expect to accelerate over the 
next few years
although network testing’s operating proﬁt 
was below that of last year its order intake 
and revenue increased – particularly in 
the second half of the year – in what are 
extremely competitive markets with the 
exception of the us – which was an early 
adopter of lte 4g – network rollouts  
are expected to take off around the world 
over the next few years last year’s 
acquisition of the invex product lines 
expanded our portfolio of scanner and 
benchmarking products although the 
laterthanplanned launch of the updated 
benchmarking platform pushed sales into 
the second half of the year and that in turn 
held back proﬁts
overview
anite had an exceptional year – revenue and 
proﬁt both increased substantially – and  
we made good operational progress in all 
three businesses 
while the continuing uncertainties 
surrounding the global economy are likely  
to result in a more challenging economic 
environment over the next few years the 
underlying drivers for our wireless division – 
the inexorable increase in mobile data and 
smartphones and in the complexity of devices 
and networks as new technology is introduced 
– will continue and will undoubtedly create 
more requirements for testing to ensure that 
we will be ready to take advantage of the 
opportunity this offers our total rd spend 
during the year was a record £17m a 32 
increase yearonyear
that investment combined with the 
commitment and quality of our people our 
credibility and longstanding relationships 
with major customers and our rapid response 
to changes in customer and market demand 
will we believe ensure that we are well 
placed to deliver sustainable growth over 
the long term
performance
the principal driver of the growth in revenue 
and proﬁt that resulted in our improved 
margins was the strong demand in the 
handset testing business for lte 4g systems 
as well as a higherthanexpected demand for 
2g3g products
growth in handset testing came from two 
product areas first from conformance 
testing ct which continues to be our key 
product area and accounted for around half  
the past year was an exceptional one for the group driven by the 
growth in revenue and proﬁts in the handset testing business
christopher humphrey 
chief executive
chief executive’s review
our travel business continued to make good 
progress and successfully negotiated the 
difﬁcult market conditions that existed across 
europe during the year it diversiﬁed its 
customer base when it won another major 
order for com – from one of the world’s 
largest tour operators thomas cook group 
– with the result that com was further 
endorsed in the eyes of other major 
international tour operators that is resulting 
in an encouraging sales pipeline across 
europe and farther aﬁeld the business  
has increased its order book to £896m  
of contracted revenue has signiﬁcant 
longerterm opportunities with tui and 
thomas cook and is better positioned  
for future growth  07
our strategy and progress
set and executing our product strategy to 
support the next generation of technology
in addition we expect to build further value 
into our travel business we will achieve this 
by continuing to evolve its business model 
ﬁrst by transitioning customers from legacy 
technology to its new more ﬂexible and 
scalable platform and second by delivering 
more large implementations with associated 
multiyear support contracts that will provide 
longterm recurring revenue proﬁt visibility 
and growth
outlook
the past year was an exceptional one for the 
group driven by the growth in revenue and 
proﬁts in the handset testing business 
looking ahead the fundamental drivers 
for all of our businesses continue to be 
favourable this gives us conﬁdence in our 
ability to achieve future growth although 
given that the wireless pipeline visibility is 
inherently low we remain conservative with 
our guidance
the sustained growth in the mobile 
telecommunications market will undoubtedly 
create more requirements for testing and  
our focus and continued investment in rd 
will we believe enable us to maintain our 
technology leadership in handset testing  
in the current year we expect to beneﬁt 
from both of our key growth engines the 
continued development of the conformance 
test market and also an increase in demand 
for interoperability testing these factors 
are expected to lead to revenue growth 
in handset testing in the low to mid teen 
percentage range
our markets
anite is structured into two marketfacing 
divisions wireless which comprises two 
separately managed businesses – handset 
testing and network testing – and travel 
 ● handset testing provides specialist 
laboratorybased systems hardware  
and software to enable manufacturers  
to design new chipsets and devices 
effectively to bring highquality devices 
to market quickly and to enable network 
operators to meet endcustomers’ needs 
by ensuring that devices meet their 
quality expectations in reallife situations 
 ● network testing provides the technology 
that enables operators of mobile phone 
networks to test their networks’ 
efﬁciency and effectiveness – and to 
ensure consistently high quality for users 
of mobile devices – by carrying out live 
testing with a wide range of devices and 
 ● travel provides reservation and 
administration systems that help 
companies primarily in the leisure sector 
to run their businesses more efﬁciently 
and to reduce back ofﬁce costs
group strategy 
our overriding objective is to continue to 
deliver shareholder value by focusing on our 
wireless division where we seek to maintain 
our position as market leader in testing 
solutions this division has strong growth 
drivers an equally strong market position and 
exhibits good potential for longterm growth 
we will continue to grow the wireless 
division by maintaining technological and 
market leadership broadening our product 
35
lte 4g
in a highly technological market we further 
established our proprietary lte 4g hardware 
platform and continued to develop our 
products and strategy  
to support the next  
generation of mobile 
technology beyond  
lte 4g to lteadvanced 
£
com
a major order from thomas cook group 
one of the world’s largest tour operators 
further endorsed 
com in the eyes 
of other major 
international
tour operators
in network testing we expect mid single 
digit percentage growth in revenue at 
constant currency we expect the success 
of our benchmarking product to offset any 
impact from competitive pressures and we 
are well positioned to take advantage of 
lte 4g rollouts as they accelerate
we have been transitioning our travel 
business over the past few years with the 
objective of building on its strong market 
position and optimising the value of its 
longterm product life cycle around 75  
of our expected revenue for the current year 
is already contracted and the pipeline of 
additional opportunities is encouraging 
performance in the current year – in which  
we will focus on delivering the major com 
implementations that we have contracted  
for over the past two years – is expected 
to be similar to the one just completed with 
low single digit percentage revenue growth 
our businesses have good market positions 
products and people to pursue multiple 
growth opportunities we have started  
the current year well ahead of last year 
and are well placed to deliver sustainable 
organic growth 
christopher humphrey
chief executive 
2 july 2012 anite annual report and accounts 2012
08
our strategy and progress
our businesses
while the rollout of lte 4g commercial 
networks continues – and far outstrips  
the rate at which previous 3g technology  
was taken up – the speed of adoption is 
inﬂuenced by a number of factors spectrum 
allocation from governments legacy 
technology on networks and economic 
pressures that constrain the investment 
necessary to upgrade the infrastructure 
lte 4g rollout has begun in north america  
asia paciﬁc and in some countries in 
mainland europe while we do not expect  
lte 4g to be implemented in the uk until 
201314 this slow rollout will not affect  
our business since our customers are based 
all over the world from the us to china 
indeed 97 of our wireless revenue last  
year came from outside the uk
despite the growth in lte 4g there are 
however still relatively few lte 4g 
subscribers worldwide the majority of the six 
billion mobile phone subscriptions are still 2g 
gsm only 15 890 million are 3g 
wcdma devices and at the time of writing 
only just over 17 million are lte 4g the 
majority of which are in north america3 
while production of the nowdominant 2g 
phones will slow down shipments of 3g and 
4g devices will continue to increase
in time we expect manufacturers to 
rationalise the number of different models 
they produce advances in technology will 
however always result in new models and 
devices that are more complex to design and 
produce and that need more tools to test 
them effectively and bring them to market 
quickly despite the efﬁciency of the new 
testing systems we estimate that a typical 
lte 4g device requires 2025 more testing 
than a 3g one each new technology has to be 1 cisco visual networking index global mobile data trafﬁc  
forecast update 20112016 february 2012
2 jefferies mobility 2010 september 2011
3 gsa – evolution to lte report june 2012
4 gcf terminal list may 2012
wireless
market trends
the mobile telecommunications market 
continues its relentless growth people 
throughout the world are moving from 
desktop computers to mobile devices – 
smartphones and tablets – to send emails 
access the internet shop transfer money 
control other devices and watch videos and 
constantly expect those devices to do more 
and more quickly
as a result the volume of data trafﬁc 
generated by mobile devices is increasing 
dramatically it has grown 33fold in the past 
ﬁve years and is projected to grow a further 
18fold in the next ﬁve in particular changes 
in contentviewing habits have resulted in a 
surge in video trafﬁc – currently 50 of mobile 
data trafﬁc it is expected to be 70 by 2016¹
the number of handsets sold around the 
world is forecast to reach 3 billion a year  
by 2020 – up from 17 billion today it is also 
forecast that smartphones will continue to 
replace feature phones by 2020 the number 
of smartphone units sold each year is 
expected to reach 25 billion – up from 
04 billion in 2011²
lte 4g – a new more efﬁcient technology – 
is not only expected to alleviate the network 
overload caused by this increase in mobile 
data trafﬁc but also to meet network 
operators’ constant need to reduce costs and 
improve the quality of experience for their 
customers 327 operators in 99 countries 
are currently investing in lte 4g and at least 
144 lte 4g networks are expected to be in 
commercial service in 59 countries over 
the next few years³
source cisco vni mobile 2012
2011
06
2012
13
2013e
24
2014e
42
2015e
69
12
10
8
6
4
2
0
2016e
108
global mobile data traffic 2011 to 2016
exabytes per month
 mobile video 705    mobile webdata 200    mobile m2m 47    
 mobile file sharing 33    mobile gaming 11    mobile voip 03
figures in legend refer to trafﬁc share in 2016 source cisco vni mobile 2012
2011 2012 2013e 2014e 2015e
12
10
8
6
4
2
0
2016e
rise in mobile video 2011 to 2016
exabytes per month  09
our strategy and progress
us to maintain our leadership and will deliver 
further growth in revenue and proﬁt as the 
market continues to develop
opportunities for growth
we will offer an increasing range of products 
to enable our wireless customers worldwide 
to exploit changes in technology in handset 
testing this includes maintaining our 
marketleading ct capability increasing  
our iot offer as we expand the number of 
new operator ecosystems worldwide and 
ensuring that our development testing dt 
solutions continue to anticipate and meet  
the demands of endcustomers and industry 
bodies we will develop into adjacent 
markets as appropriate to meet our major 
customers’ demands
in network testing we augmented our 
testing tools when we launched 
benchmarking and scanner products with  
the objective of establishing them as 
marketleading products while there will not 
be a signiﬁcant volume of lte 4g business for 
network testing until commercial networks 
are rolled out we are in the enviable position 
of having the most comprehensive lte 4g 
product portfolio on the market we have 
already sold lte 4g equipment to network 
equipment manufacturers and operators  
in north america and mainland europe  
and expect to make progress in this area  
in the coming year 
we continue to support products that 
address legacy technologies the demand 
for which has proved to be more sustained 
than expected our current focus is  
however principally on lte 4g although  
we are already planning for the next 
generation lteadvanced 
compatible with legacy technology and work 
on different frequencies around the world the 
industry is only now entering the mandatory 
testing phase for lte 4g devices and to date 
only 19 lte 4g devices have been certiﬁed 
this year whereas 300 to 400 2g3g devices 
were certiﬁed in each of the past three years4
this phase will require each manufacturer to 
signiﬁcantly increase its testing capacity as 
network rollouts accelerate
nor is the industry standing still it is 
anticipating future demands that will result 
in more testing opportunities lteadvanced 
ltea – the next stage in lte’s evolution 
– delivers even faster data rates it will 
provide superfast wireless broadband 
delivered in gigabytes rather than megabytes 
the industry is currently building consensus 
on the capability and features of ltea and 
deployment is expected to begin during 2013
strategy
our strategy in both wireless businesses is  
to position anite as a global leader in wireless 
test solutions by focusing on the areas in 
which we specialise we will continue to 
invest in early rd to keep our highly 
specialised products at the leading edge and 
to have the latest technology available for 
our customers as soon as they need it in 
addition we will look to expand our testing 
capabilities into adjacent markets as we have 
already achieved with iot benchmarking and 
scanners in meeting customers’ and market 
demands our primary focus will be on 
internally developed products but we may 
supplement these with carefully selected 
small acquisitions as appropriate 
we believe this commitment to our 
customers and to the market will enable  
 2g    3g    lte 4g    
 source gcf terminal list – 25 may 2012
2002 2000 2001 2003 2004 2005 2010 2011 2012
ytd
2006 2007 2008 2009
600
500
400
300
200
100
0
gcf device certifications by technology
number
  feature phones     smartphones
source jefferies mobility 2010 and anite’s own estimates
2011e 2010 2012e 2013e 2018e 2019e 2020e 2014e 2015e 2016e 2017e
35
30
25
20
15
10
05
0
mobile handsets sold annually 
smartphones vs feature phones 2010–2020
billions anite annual report and accounts 2012
10
our strategy and progress
our businesses continued
 handset testing
handset testing product range
development testing dt
anite’s development toolset supports all phases of wireless device development 
from presilicon protocol module development through to systems integration  
and veriﬁcation 
conformance testing ct
anite’s industryleading conformance toolset tests the individual protocol stack 
layers in a wireless device to ensure compliance with the latest industry standards
interoperability testing iot
anite sas is a network simulator solution that enables customers to quickly evaluate 
devices in the integration interoperability and carrier acceptance testing phases  
the ﬁrst product of its kind it remains the market leader   11
our strategy and progress anite annual report and accounts 2012
12
our strategy and progress
we are now developing our technology 
to support lteadvanced which is 
signiﬁcantly faster than lte 4g in 
preparation for the time when it can 
be supported by the networks
the market is driven by certiﬁcation schemes 
that are administered by the standard setters 
– such as the global certiﬁcation forum 
gcf a partnership of mobile network 
operators mobile device manufacturers 
and the test industry which has created  
an independent certiﬁcation programme  
to help ensure interoperability between 
mobile devices and networks worldwide  
we have consistently led the lte 4g 
conformance testing market in both veriﬁed 
and validated test cases
iot has grown signiﬁcantly as a result of the 
world’s larger network operators realising 
that while in theory a mobile network exists 
in a standard form in reality the combination 
of different manufacturers handsets and 
radio technology results in inconsistencies 
this can lead to customer churn if subscribers 
experience variable quality – and it costs an 
operator signiﬁcantly more to acquire a new 
subscriber than to retain an existing one 
field testing of devices – the traditional 
method of iot which is carried out when  
a device is materially complete involves 
performing drive tests to assess the device’s 
behaviour network simulation which 
involves recreating ﬁeld tests of devices in 
the laboratory is rapidly gaining momentum 
because it enables testing to be more 
focused more repeatable and subsequently 
reduces test time and related costs 
manufacturers need to test their devices 
we sell our products worldwide through a 
directly employed sales force software sales 
are most commonly made using perpetual 
licences in addition customers buy annual 
maintenance and support contracts that 
entitle them to upgrade to new software 
releases which reﬂect development in 
underlying wireless standards once 
acquired customers will often operate 
systems and pay for support for as long  
as ten years
as mobile phone technology advances our 
systems – which have a long lifespan and are 
easy to use – can be used in conjunction with 
newer technology 
handset testing solutions
we focus on conformance testing ct – 
which ensures that devices are certiﬁed as 
complying with minimum industry standards 
and are able to deliver the service expected  
of them development testing dt – working 
in collaboration with our customers as they 
develop viable earlystage devices and 
interoperability testing iot – simulating 
realworld network conditions to ensure that 
devices function as expected on different 
network conﬁgurations
our solutions test the entire range of devices 
– from second generation 2g through to the 
latest fourth generation 4g new mobile 
devices must contain legacy as well as new 
generation technology to enable them to 
maintain a connection across a variety of 
networks this creates a signiﬁcant level 
of commercial protection for us since new 
entrants to the test market would have to 
be able to provide a comprehensive range  
of test cases for 2g 3g and 4g 
wireless handset testing
our handset testing business has been a 
world leader for 20 years it enables chipset 
and device manufacturers to test their 
products’ viability to improve their quality 
and to reduce their timetomarket and 
enables network operators to tailor devices 
to their individual network conﬁgurations
during the complex process of developing 
new radio chipsets or handsets – using old  
or new radio technology – it is not possible  
to use existing networks to establish whether 
prototypes work to the required standards 
our system not only tests newly developed 
devices’ radio function by wiring them to 
simulated networks it also changes the radio 
simulation to test their overall performance 
in hundreds of everyday scenarios each new 
technology evolution has to be compatible 
with previous technologies to enable any 
device to function across the entire network 
and in different countries
business model
our handset testing business employs  
highly specialised engineers employees  
and shortterm contractors to develop 
its products – often in collaboration with 
customers as we both seek to tackle the 
challenges presented by new technologies 
our products are built around a core 
hardware and software platform on which 
one of handset testing’s own applications is 
loaded for certain applications customers 
buy additional test scripts – which run 
exclusively on our systems – that enable 
them to test their devices against speciﬁc 
simulated scenarios and characteristics 
our businesses continued
2g4g
our solutions test the 
entire range of devices – 
from second  
generation 2g
through to the 
latest fourth 
generation 4g  13
our strategy and progress
against real network conditions as early as 
possible the later into the life cycle they are 
the more it costs to ﬁx a bug laboratory
based iot can be carried out at various 
phases of a device’s life cycle even at the 
early development stage
network operators can perform iot testing 
either inhouse or by managed supplychain 
testing which is often referred to as a  
“carrier acceptance scheme” larger network 
operators are beginning to take much 
stronger control of their supply chains 
as evidenced by the increasing number of 
carrier acceptance schemes we are running 
by pushing quality assurance back onto 
the device manufacturers our iot product 
includes carrier test scripts customised to 
speciﬁc network conﬁgurations by reducing 
postlaunch bugs it reduces time and 
costtomarket as a result of using our 
system one customer cut its time to launch 
new devices by 50
case study handset testing
telefónica  
germany 
telefónica germany telefónica with the leading 
o
2
 brand is one of europe’s foremost integrated 
telecommunications companies with 100 
population coverage the company’s customer base 
currently stands at more than 24 million households 
throughout germany one of its principal business 
drivers is to maintain its reputation not only for  
being the ﬁrst to provide the latest musthave 
devices but also for providing excellent quality  
for its customers
in order to achieve these objectives telefónica 
needed a costeffective interoperability testing 
system that enabled it to carry out rigorous  
device approval in a timescale that accelerated 
speedtomarket in 2001 it began to use anite’s 
interoperability test system – sas – to ensure that  
all devices complied with its network speciﬁcations 
this partnership between our companies which 
coincided with the development of 2g and 3g 
networks continues to provide major beneﬁts  
as telefónica increases its introduction of devices  
to the market in preparation for the launch of  
its lte 4g network in july 2012 
for telefónica sas’s principal advantage is that  
it is a laboratorybased devicetesting tool 
programmed to simulate reallife network  
situations under controlled conditions compared 
with traditional ﬁeldtesting which tests devices 
on actual networks sas helps to reduce the time  
to approve new handsets dongles and routers 
as telefónica’s guenter wende says “working  
in a lab simpliﬁes and speeds up the testing of  
devices we use anite’s sas software to deﬁne 
a whole set of complex scenarios and to verify 
compliance against required speciﬁcations in a 
timescale that we could not achieve in the ﬁeld” 
sas substantially reduces test time and related  
costs its unique graphic interface enables a 
straightforward and rapid test setup and provides  
an intuitive and simpliﬁed method of analysing 
results because it is softwarecentric and is  
operated from a pc in contrast to ﬁeldtesting – 
which typically needs to be run by three qualiﬁed 
engineers – it does not need to be conﬁgured 
manually to set up the tests and does not require  
an experienced programmer to run it 
 “being ﬁrst to market is crucial if you can offer  
a range of devices and excellent quality of service 
ahead of the competition you are more likely to 
attract the early adopters and highrevenue mobile 
users this is important for market share and 
for maintaining our position as a market leader 
competition in this sector is tough and you have 
to get the launch of services and devices right 
ﬁrst time there are no second chances”
guenter wende
manager devices
telefónica germany
35 anite annual report and accounts 2012
14
our strategy and progress
our businesses continued
network testing
network testing product range
optimisation
anite’s optimisation solution offers measurement troubleshooting and 
maintenance tools for every stage of the network life cycle indoors or outside  
by collecting radio network performance metrics through walk or drive testing 
benchmarking
anite provides the most complete and ﬂexible set of tools to benchmark  
wireless network coverage and quality of service across service providers and 
technology generations 
autonomous testing
anite’s unattended measurement probes are installed in moving vehicles or ﬁxed 
locations to monitor what’s happening on a network and provide steady streams  
of radio network performance metrics at the lowest possible cost
analysis and reporting 
this scalable solution combines high performance analysis of drive test data with 
advanced root cause troubleshooting capabilities to highlight any network issues 
and includes automated report generation   15
our strategy and progress anite annual report and accounts 2012
16
our strategy and progress
we sell to around 130 countries and 
continued to develop our network of local 
distributors during the year in addition 
to their sales function these partners offer 
technical help to customers
towards the middle of the year network 
testing launched the recently acquired invex 
benchmarking product it enables a large 
number of devices to be measured 
simultaneously without radio interference 
and we are receiving good feedback from 
initial sales the predecessor to the new invex 
product was predominately sold in the north 
american market – our international sales 
coverage will enable it to be sold around  
the world to reach a far larger market the 
scanning receiver product which we acquired 
at the same time is highly competitive and 
has also been well received by customers 
and it becomes necessary to replace 
equipment that has become damaged 
in the harsh environment in which they 
typically operate or as mobile phone 
technologies evolve 
network testing solutions
we offer our customers one of the strongest 
and most versatile ranges of network  
testing products available our network 
measurement tools are designed to meet 
the needs of all our customers regardless  
of their internal processes and means of 
testing the tools provide a wide range  
of information from call quality and data 
download and upload speeds to signal 
reliability the interaction of neighbouring 
cells and the efﬁciency with which devices 
“handoff” from one cell to another as they 
move in a vehicle on foot or in a building
our products range from nemo handy  
an easytouse handheld device that can be 
used for indoor and outdoor testing to nemo 
autonomous which provides a costeffective 
unmanned continuous stream of data nemo 
outdoor is a powerful laptopbased solution 
used for “drive testing” by an engineer who 
travels around an area – at all times of the 
day and night and in all weather conditions 
– to compare coverage and quality as devices 
need to handle increasing volumes of data 
our test systems need to be able to process 
and portray the more complex problems  
that occur in today’s networks
the software embedded in our products 
enables network operators and their 
subcontractors to manage and analyse vast 
quantities of data quickly and efﬁciently 
either on our postprocessing analyser or 
on thirdparty processing tools 
wireless network testing
our network testing business provides 
products – under the nemo brand – for 
network operators and network infrastructure 
manufacturers to measure the coverage and 
quality of mobile phone networks it enables 
operators or their subcontractors to ensure 
that customers’ ability to make telephone 
calls send an sms or receive and send data  
is as unimpaired as possible by identifying 
anomalies in the radio network it also 
enables operators to ﬁx reception problems 
and to maintain a consistent quality of 
experience for subscribers
business model
network testing develops and sells highly 
specialised software to mobile network 
operators and service companies to help 
them install monitor and maintain their 
mobile networks around the world it 
employs a direct sales force in strategically 
important locations but given the diverse 
geographic locations of customers it also 
uses a network of distributors to sell and 
support its products our solutions are 
developed by our own highly specialist  
radio technology engineers the products  
are usually incorporated in and run on 
commercially available thirdparty hardware 
and are sold with a perpetual software 
licence that includes a period of warranty 
and support usually 12 months 
customers are given the option to extend the 
warranty but the relatively short life cycle of 
most products means that recurring revenue 
is not as high as in the other anite businesses 
however once network operators have made 
the initial investment in a suite of products 
to test their networks they usually make 
followon purchases as their needs expand 
our businesses continued  17
our strategy and progress
case study network testing
 benchmarking
mobile network operators are experiencing an 
unprecedented increase in trafﬁc on their networks 
as a result of the rapidly growing demand for 
highspeed data on the move in today’s wireless 
market which is changing at an extraordinary pace 
it is extremely important for operators to stay ahead 
of the competition an indepth understanding of 
the way their network is performing and how it 
compares with its competitors gives any operator 
a competitive advantage
to gain this advantage one of southeast asia’s 
leading mobile network operators selected anite 
as its preferred partner in providing a solution  
to benchmarking its services it chose our nemo 
invex solution because it
● is capable of supporting a large number of 
measurement devices – handsets usb data 
modems and scanning receivers – from 
different vendors 
● supports all major network technologies  
from gsmcdma to hspaevdo and lte 4g
● is simple to use and is robust in drive tests
● uses common application protocols to provide 
results that closely emulate endusers’ 
experiences and
● has versatile scripting features to enable the 
measurement of many different kpis
the results from these nationally deployed nemo 
invex drivetest systems provided an invaluable 
insight into the network’s performance including 
comparative network coverage call success and 
data speed in addition to providing business
critical information for network planning and 
optimisation results are also often used to validate 
marketing campaigns demonstrating a network’s 
superiority over its competition
this customer the market leader in its country 
is committed to working with anite for a number 
of reasons 
● we are leading the deployment of new 
technology across our entire product range
● our work with measurementdevice 
manufacturers enables fast integration 
of new devices
● we have a wide range of tools – in addition  
to nemo invex – for various mobile network 
measurement purposes
● we provide strong local and regional aftersales 
support that ensures continuous productive  
use of our tools and ensures that any issues 
are resolved promptly and efﬁciently 
a senior manager at the customer 
commented
 “anite’s benchmarking system has fulﬁlled our 
stringent requirements – it is easy to use is highly 
reliable during drive testing and provides 
bestinclass measurement logs for postanalysis 
we are delighted with the service they give 
us remotely and onsite and look forward  
to increasing our cooperation in the future” anite annual report and accounts 2012
18
our strategy and progress
our businesses continued
travel
travel product range
com ebusiness suite 
aimed at the leisure sector the com ebusiness suite is our premier travel product 
it provides a comprehensive suite of modules supporting many types of tour 
operator and wholesaler models from accommodation wholesalers to high volume 
package and dynamic packaging tour operations 
this integrated enterprise resource planning erp solution – which includes supplier 
contracting dynamic supplier connectivity sales inventory management customer 
documentation supplier notiﬁcation and accounts receivable and payable – can  
be bought and implemented in modules
our ﬂexible software enables leisure travel companies to manage a wider range  
of products and allows international companies to tailor their product offerings  
to meet national characteristics
comres
comres is the core around which our com ebusiness suite is built and offers the 
key functions of reservations and administration which in turn support content and 
customer relationship management and operational ﬁnance comres also provides 
multichannel distribution for leisure travel companies
comres has the potential to signiﬁcantly reduce tour operators’ back ofﬁce costs 
by standardising processes across all markets and types of holiday and can be scaled 
up to cope with an increasing workload as the business grows  19
our strategy and progress anite annual report and accounts 2012
20
our strategy and progress
the systems are sold by an inhouse sales 
team contract arrangements vary but 
typically involve an upfront licence fee and 
charges for development and implementation 
to get the system live and operational part of 
the sales process involves a customerfunded 
detailed gap analysis which identiﬁes any 
gaps between the functionality of our current 
product and the customers’ requirements 
once live the systems may be in operation 
for more than 15 years replacing them 
creates considerable disruption and business 
continuity risk for the customer once live 
the customer will require signiﬁcant 
maintenance and support as well as the 
potential for annual licences depending  
on the structure of the overall contract 
this is generally contracted for a ﬁxed 
minimum term of ﬁve years in addition 
there will be ongoing business functionality 
improvements demanded by customers  
as the market evolves travel also  
provides a facility for hosting customers’ 
infrastructures at its own data centre this 
again is typically contracted on the basis 
of multiyear agreements
travel solutions
com which sits at the heart of leisure travel 
companies’ businesses enables them to 
operate efﬁciently in today’s costpressured 
environment our ebusiness suite takes  
them through the entire range of operations 
required by the demanding and everchanging 
travel market and enables them to contract 
with hoteliers and to gather internal and 
thirdparty inventory to form the basis of 
package holidays these can be ﬂexibly priced 
and if required can link to yield management 
systems to present holidays for sale – through 
the internet travel agents and call centres – 
by a variety of search methods supported  
convert our strong sales pipeline in a manner 
to suit resources and timescales which 
should enable proﬁtable growth of the 
business into the future we will seek to 
increase the proportion of support and 
maintenance revenue from existing projects 
to provide future stability and proﬁtability
opportunities for growth
our com solution is currently the only 
successful and proven largescale leisure 
travel reservation system on the market  
tui’s and thomas cook’s commitment to  
com has increased the product’s reputation 
and has led to wider interest across europe 
where inﬂexible legacy solutions still abound 
there is also increasing interest outside the 
european package holiday heartland we plan 
to beneﬁt from this either by working with 
our existing major customers who are 
moving into these markets or by selling 
to new large customers
business model
travel’s software engineers develop systems 
based around a common core of code and 
functionality for leisure travel companies 
to manage their full business life cycles 
individual implementations can involve 
signiﬁcant work to develop interfaces that 
enable travel’s software to ﬁt within the 
customer’s existing system landscape 
bespoke business functionality enhancements 
undertaken for individual customers can be 
added to core functionality if appropriate 
and offered to existing customers as part 
of their upgrade pattern thus ensuring 
continual development of the system and 
maintenance of a common code base since 
individual implementations for customers  
are broadly similar they can be supported  
by a single team although some customers 
require a dedicated resource 
travel
market trends
travel provides reservations systems that 
enable leisure travel companies to run their 
businesses more efﬁciently the economic 
environment continues to exert pressure on 
the industry tighter budgets rising costs and 
geopolitical events are creating an ever
changing challenge over destinations 
in addition as a result of the trend for  
online travel agents and dynamic packaging 
our customers demand more from their it 
systems our technology directly addresses 
the industry’s core issues in this highly 
pressurised environment it helps them 
reduce costs by retiring legacy it platforms 
and automating processes offers highspeed 
and accurate holiday searching and gets  
their own differentiated products to market 
as quickly as possible
we are well positioned to succeed in this  
new world the inherent ﬂexibility of our 
industryleading com system creates the 
means for traditional tour operations to 
coexist with dynamic packaging by enabling 
destination pricing and inventory ﬂexibility
strategy
our strategy is to maintain and develop  
our products to exploit our technological 
leadership and capitalise on our customer 
relationships in the mid and uppertier 
leisure travel market to this end we will 
continue to develop and launch new com 
modules to meet changing market needs  
we will also continue to deliver successful 
projects to our major customers which 
should lead to further opportunities – 
for addons and new territories – in these 
very large organisations we will work to 
our businesses continued  21
our strategy and progress
by content management and customer 
relationship management modules
as an operator sells holiday packages  
com records the transactions and produces 
documentation updates prices and 
availability optimises inventory and  
produces complete ﬁnancial records that  
can be fed into the organisation’s ﬁnancial 
and management information systems
geopolitical and economic pressures over 
recent years have resulted in leisure travel 
companies focusing on the need to improve 
their cost bases in what was already a 
lowmargin sector the key attribute of com 
is its ability to make a substantial reduction to 
back ofﬁce costs through improved efﬁciency 
ﬂexibility and user control this enables  
faster reaction to market changes speedier 
price updates and signiﬁcantly improved 
timetomarket for new offers or late deals
com helps operators manage their 
technology challenges as internet and 
mobile data continue to drive consumer 
behaviour it enables operators to combine 
traditional holidays with dynamic packaging 
using thirdparty ﬂights hotels and 
other components 
initially com supported the sale of holidays 
through travel agents using inventory 
aggregation and internetbased selling tools 
as more holidays were being sold over the 
internet developments in highspeed search 
and multiple message sets – that are able 
to feed the demand for faster and more 
accurate data on the web and onto mobile 
devices – have moved anite directly into this 
sector creating opportunities to gain a bigger 
share of customers’ it spend
£
case study travel
tui central 
europe 
tui travel is one of the world’s leading leisure travel 
companies with over 250 trusted brands in 180 
countries and more than 30 million customers 
tui central europe tui covers their mainstream 
operations in germany austria switzerland and 
poland with tui and 12fly the topselling brands 
the business is focused on providing a unique service 
and great products at the best value for its customers
because matching capacity to proﬁtable demand 
is crucial to the success of its business tui began 
a working relationship with anite in 2006 when 
it implemented our com reservation system  
which enabled it to streamline its contracting and 
production processes and to create and price 
products more quickly and ﬂexibly 
in august 2011 we embarked on a new project to 
provide tui with a platform to integrate its destination 
agents and hoteliers with its internal product services 
business project destimo this would in effect be an 
inventory and product management portal to support 
a range of features including intelligent search and 
to create the ability for suppliers to offer or add new 
inventory it would also enable tui to create new 
or make changes to existing products more quickly 
and effectively
typically the life cycle of a touroperating product 
begins with the hotel contracting process through 
mobile contracting systems after the initial load  
and launch of tui’s product at the beginning of the 
season there was a considerable amount of ongoing 
administration including daily engagement with 
hoteliers and destination agents
our project with tui was designed not only to 
save it overheads by optimising the management 
of a number of internal processes – which were 
previously administered manually – but also to give 
hoteliers and destination partners direct access  
to uptodate product information through tui’s 
destimo portal this enables suppliers to monitor  
the rate of sales of their own inventory and to offer 
tui new inventory as and when it becomes available 
the new facility has delivered substantial cost 
efﬁciencies to tui because it has effectively 
streamlined a number of operational processes  
which previously had a high degree of manual 
administrative overhead while providing hoteliers  
and destination partners access to realtime 
uptodate product information
the 2012 launch of project destimo at the world’s 
leading travel trade show itb in berlin resulted 
in extremely positive feedback from hoteliers 
and destination agents that gave tui the 
conﬁdence to roll it out across its hotel regions  
and destinations worldwide 
 “anite’s people clearly understand the travel market 
and their technical teams have the ability to translate 
complex operational requirements into effective 
solutions for our business being able to rely on the 
expertise of a reliable and strategic partner is key to 
keeping tui at the forefront of the travel industry”
jan van daal
tui’s director itmanagement production systems 
and platforms  anite annual report and accounts 2012
22
our strategy and progress
than doubled to £339m 2011 £167m 
represented 44 of handset testing revenue 
in the year compared with 34 in the prior 
period the level of growth achieved by 
lte 4g products was at the top of the 
range of the expectations we had for the 
technology at the start of the year and was a 
reﬂection of the developments in the overall 
industry where operators are demonstrating 
an increased commitment to rollingout  
the new technology and chipset and  
device manufacturers are seeking to  
support this commitment by introducing 
compatible devices 
in addition to the growth in lte 4g products  
we also achieved growth in 2g3g 
technologies here we had anticipated a year 
of ﬂat revenue growth as we expected spend 
to shift to lte 4g technologies in practice 
we achieved growth of 29 to £425m 
2011 £329m in these older technologies 
much of this growth emanated from 
customers buying systems to test for 
backwardscompatibility functionality at the 
same time as equipping for lte 4g testing 
from a market perspective there was good 
growth for our traditionally strong 
conformance testing ct product which 
grew over 50 and now accounts for around 
half of handset testing’s revenue the most 
signiﬁcant growth was however achieved  
in the newer area of interoperability testing 
iot which grew nearly 80 yearonyear 
and now accounts for approximately 40  
of handset testing’s revenue 
on a regional basis asia paciﬁc revenue 
increased 78 to £303m 2011 £170m 
making it our biggest region this growth  
was driven by the signiﬁcant investment  
the past 12 months delivered strong ﬁnancial 
results with exceptional growth rates in 
revenue and adjusted operating proﬁt  
of 31 and 64 respectively compared  
with the prior year
the growth was primarily delivered by 
handset testing which beneﬁted from 
a strongerthananticipated demand for 
both lte 4g and 2g3g technology products 
in network testing revenue increased 
particularly in the second half of the year 
although proﬁts were affected by the 
investment being made in the invex 
benchmarking and scanner products 
acquired in the previous year
following the declines of the previous two 
years travel had a more encouraging year 
delivering slightly improved adjusted 
operating proﬁt on revenue that was in line 
with the prior year more importantly for the 
future of the business travel increased its 
closing order book by 42 
wireless handset testing 
the adjusted results for the handset testing 
business show exceptional yearonyear 
growth order intake grew 33 to £794m 
2011 £596m revenue increased by 54 
to £764m 2011 £496m and adjusted 
operating proﬁt more than doubled to 
£215m 2011 £100m the closing order 
book in the business increased 15 from 
£217m at the start of the year to £249m 
at 30 april 2012
a signiﬁcant proportion of the revenue growth 
in handset testing came from increased sales 
of lte 4gcompatible products such as the 
anite 9000 lte 4g hardware platform 
revenue from lte 4g products which more 
review of operations
  2010      2011      2012
2010 operating margin 10  2011 operating margin 20  2012 operating margin 28
794
596
322
order intake
215
100 35
operating proﬁt
764
496
358
revenue
249
217
121
closing order book
115 54 15 33
review of operations – handset testing
£m
  emea      the americas      asia paciﬁc
131
195
2011
total £496m
170 173
288
2012
total £764m
303
revenue by destination – handset testing
£m  23
our strategy and progress
and iot scripts resulted in a net capitalisation 
of rd costs of £07m 2011 £10m with 
the result that the proﬁt and loss charge  
for rd increased in the period to £123m 
2011 £92m other ﬁxed costs in handset 
testing increased by £25m to £207m  
2011 £182m the majority of the 
increase resulted from higher staff costs 
predominantly in supporting the larger 
number of systems installed at customer 
sites headcount in handset testing was  
211 employees at the year end 2011 180 
and 56 contractors 2011 45 an increase  
of 19 in total headcount compared with  
the 54 increase in revenue 
as a result of the factors described above 
handset testing’s operating margin increased 
eight percentage points to 28 2011 20 
wireless network testing 
network testing increased its order intake  
by 13 to £260m 2011 £230m while 
revenue increased by 8 to £260m 2011 
£241m this business has no signiﬁcant 
closing order book adjusted operating 
proﬁt fell by 17 to £53m 2011 £64m  
as a result of the increased rd cost base 
following the acquisition of the invex 
benchmarking and scanner products  
in january 2011
market conditions for network testing 
products were relatively difﬁcult as operators 
once again tightened budgets following  
a period in the prior year when they caught 
up on previously deferred spending this in 
turn led to signiﬁcant competitive pressure 
but despite this negative market trend 
network testing performed well and 
increased its revenue 
asia paciﬁc manufacturers are making in 
developing smartphones emea revenue 
increased 32 to £173m 2011 £131m 
while the americas increased 48 to 
£288m 2011 £195m 
handset testing’s net revenue margin 
revenue less thirdparty hardware costs as  
a percentage of revenue fell as predicted  
to 71 2011 75 this was the result of an 
increased proportion of hardware costs in the 
product mix in the future as the lte 4g 
product mix develops we expect this 
percentage to start to increase as we sell a 
greater proportion of software and support
the business continued to invest in rd 
during the year enhancement of the anite 
9000 platform continued as did investment 
in ct and iot applications throughout the 
past year anite continued to lead the market 
on numbers of validated lte 4g conformance 
test scripts and currently has around 380 
scripts validated by the standards bodies  
the range of what we offer in this area is 
helping us to win signiﬁcant share in the  
early stages of the lte 4g conformance
test market in iot we increased our range  
of scripts for the small number of carrier 
acceptance programmes that we had  
in place as well as progressing programmes 
with a number of potential new operators 
including china mobile the world’s largest 
mobile operator
maintaining our position at the forefront of 
the technology is critical to the continued 
success of our business the cash spent on 
rd projects increased to £130m 2011 
£102m with the bulk of the increase being 
spent on our hardware platform and iot  
a planned increase in spend on writing lte ct  anite annual report and accounts 2012
24
our strategy and progress
review of operations continued
existing products including drive testing 
handheld and analysis tools the hand held 
nemo handya product line was enhanced 
by several new lte 4gcapable devices and 
by the launch of the ﬁrst tabletbased variant 
the development of the nemo invex 
benchmarking product line included support 
for the latest lte 4g devices development 
of the nemo fsr1 scanning receiver focused  
on improving lte 4g measurement 
capabilities and expanding supported 
frequencies these developments ensure that 
network testing’s product portfolio supports 
the very latest lte 4g measurement 
capabilities for both lte fdd and lte tdd 
technologies on all the major frequency 
bands in use worldwide other ﬁxed costs 
increased by 7 to £93m 2011 £87m 
most of this was additional sales and 
marketing costs to support the bigger 
business headcount at the year end was  
113 30 april 2011 103
overall after the factors above operating 
margins for the network testing business 
remained healthy at 20 albeit down  
from the 27 achieved in the prior year
the business beneﬁted from the previous 
year’s reinvigoration of the sales function 
and the continuing improvements to its 
distributor network part of the growth in 
revenue came from the invex benchmarking 
product which was only partially developed 
at the time of its acquisition in january 2011 
and was completed and launched just before 
the end of the ﬁrst half of this ﬁnancial year 
subsequent sales of the product were 
achieved in the second half of the year and 
the pipeline of opportunities at the year end 
is encouraging other developments included 
further enhancements to the scanner 
product acquired at the same time as the 
benchmarking product and sales were 
extremely successful in the year in addition 
all network testing products are now 
compatible with lte 4g technology and the 
business had some limited early success in 
helping operators with rollout programmes 
even though the market is still embryonic 
network testing’s revenue in emea decreased 
slightly to £118m 2011 £122m in the 
americas however it beneﬁted from its 
increased presence following the invex 
acquisition and grew by 21 to £68m 
2011 £56m in asia it grew by 17 to 
£74m 2011 £63m a reﬂection of the 
region’s growth in the mobile industry 
the beneﬁt of having an inhouse scanner 
offset some price erosion caused by market 
conditions with the result that net revenue 
percentage was down only slightly at 70 
2011 72 rd costs increased to £37m 
2011 £22m including £04m of capitalised 
development 2011 05m mainly as a result 
of the extra rd facility that came with the 
invex acquisition in january 2011 during the 
year signiﬁcant upgrades were launched to 
  2010      2011      2012
2010 operating margin 23  2011 operating margin 27  2012 operating margin 20
260
230
211
order intake
53
64
45
operating proﬁt
260
241
200
revenue
00 00
11
closing order book
17 8 00 13
review of operations – network testing
£m
  emea      the americas      asia paciﬁc
122
56
2011
total £241m
63
118
68
2012
total £260m
74
revenue by destination – network testing
£m  25
our strategy and progress
in the year 61 of travel’s revenue came 
from the com product 2011 51 and 
60 2011 56 came from the uk 39 
2011 42 from europe and 1 2011 2 
from the rest of the world more than 
six million passengers a year now book their 
holidays on com systems in the uk and 
across continental europe 
the net revenue percentage was essentially 
unchanged at 96 2011 95 while ﬁxed 
costs fell £0 1m from the previous year 
headcount remained relatively stable during 
the year at 163 2011 167
overall travel’s operating margin increased 
two percentage points over the prior year 
to 23
other group costs 
the divisional performances above are stated 
before unallocated corporate costs which 
include an element of head ofﬁce staff costs 
directors’ remuneration professional fees 
and other nonoperational costs during the 
year unallocated group costs decreased  
by £04m to £26m 2011 £30m largely 
because of the nonrecurrence of a oneoff 
property cost incurred in the prior year 
christopher humphrey
chief executive 
2 july 2012
travel 
the travel division had a good year as 
reﬂected in its ﬁnancial results order intake 
was very strong up 37 to £466m 2011 
£340m with revenue ﬂat at £201m 2011 
£200m and adjusted operating proﬁt up 
10 at £46m 2011 £42m the closing 
order book was up to £896m 2011 
£632m with the intake in the year 
representing a booktobill ratio of 23 times 
2011 17 times over the past two ﬁnancial 
years more than £40m has been added to 
travel’s closing order book an important 
driver of value in the business
the major orders signed in the past 
12 months included followon work for tui 
central europe following the successful 
implementation of the com system and 
the award of a contract from thomas cook  
to implement com in its uk mainstream 
business around £16m of the closing order 
book is expected to be delivered in the 
current ﬁnancial year with the balance 
due for delivery over the next ten years
in addition to the initial implementation for 
thomas cook the other key feature of the 
year was the continued progress on the 
contract signed last year with tui to 
implement com in their uk mainstream 
business 40 of travel’s revenue was of 
a recurring nature 2011 41 being either 
managed services or software maintenance
support revenue licence sales in the year 
were £30m 2011 £15m we expect the 
proportion of recurring revenue to increase  
in the future as the large projects currently  
in development go live and migrate  
to a maintenance and support phase 
call centre
£
travel agent
shop online
search   price   book 
  2010      2011      2012
2010 operating margin 24  2011 operating margin 21  2012 operating margin 23
466
340
290
order intake
46 42
56
operating proﬁt
201 200
230
revenue
897
632
492
closing order book
10 00 42 37
review of operations – travel
£m
  uk      europe      row
113
83
2011
total £200m
04
121
78
2012
total £201m
02
revenue by destination – travel
£m anite annual report and accounts 2012
26
our strategy and progress
as previously explained in the report the year 
ended 30 april 2012 was one of exceptional 
growth for the group this resulted in good 
cash generation which in turn led to a 
stronger balance sheet during the year 
the group’s outstanding swap liability was 
settled and the new bank facilities were 
signed although they are currently unused 
they give the ﬁnancial ﬂexibility necessary 
as the group continues to develop 
principal accounting policies 
the principal accounting policies are 
unchanged there were two new standards 
and a number of minor improvements  
to existing standards in the year but none  
of these had a material impact on the  
group’s results 
financial results 
revenue from continuing operations was up 
31 at £1225m 2011 £937m and adjusted 
proﬁt before tax increased 75 to £280m 
2011 £160m 
reconciliations of adjusted ebitda of 
£342m 2011 £222m to the operating 
proﬁt of £225m 2011 £139m and adjusted 
operating proﬁt of £288m 2011 £176m  
to the reported proﬁt before tax for the year 
of £222m 2011 £122m are set out in the 
tables below the reconciling items are those 
that in the opinion of the board are either 
oneoff in nature or are noncash related and 
are not therefore indicative of the group’s 
underlying trading in the opinion of the 
board the adjusted results give a better 
representation of the underlying performance 
of the group
reconciliation of operating to statutory results
2012 2011
£m £m
adjusted ebitda 342 222 
depreciation       33 28 
amortisation of intangible assets       21 18
adjusted operating profit       288 176 
sharebased payments       29 01
amortisation of acquired intangible assets      33 36 
restructuring costs       01 02
operating profit       225 139 
adjusted operating profit       288 176 
net ﬁnance charges excluding recycled hedge losses 08 16 
adjusted profit before tax 280 160 
sharebased payments  29 01
amortisation of acquired intangible assets  33 36 
restructuring costs  01 02 
other gains and losses 05 –
net ﬁnance charges recycled hedge losses  – 01
profit from continuing operations before tax 222 122 
we have strengthened the balance sheet through good 
cash generation
richard amos
group finance director
financial review  27
our strategy and progress
currency effects 
movements in exchange rates in the year had 
an overall mildly positive effect on the results 
compared with the previous year yearon
year the average exchange rate for the us 
dollar weakened 2 against sterling from  
£1  us157 to £1  us159 although the 
average rate of the euro strengthened by 1 
from £1  €118 to £1  €117 the net effect  
of these changes on the translation of results 
from overseas subsidiaries was to reduce 
revenue by £01m with no impact on adjusted 
operating proﬁt there was no signiﬁcant 
impact on any of the individual businesses
the closing exchange rates at the year end 
which affect the conversion of foreign 
exchangedenominated balance sheet items 
– such as cash and trade debtors and 
creditors – saw mixed movements of the 
foreign currencies against sterling the closing 
rate for the euro was £1  €1226 2011  
£1  €1123 an appreciation of 9 on the 
previous year the closing exchange rate for 
the us dollar was however £1  us1626 
2011 £1  us1666 a depreciation of 2 
on the previous year 
where possible exposures associated with 
foreign currency balance sheet accounts are 
hedged or minimised by converting into local 
currencies as are the transactional effects  
of business units trading in currencies other 
than their local currency in the year these 
exposures net of hedging impacts had 
combined an approximate net £09m 
positive proﬁt effect compared with  
a corresponding net £03m positive proﬁt 
effect in the previous year resulting in  
£06m overall positive year on year impact 
on operating proﬁt network testing and 
travel each beneﬁted by £03m 
revenue
revenue from continuing operations 
increased in the year by 31 to £1225m 
2011 £937m the growth in revenue was 
principally achieved by the handset testing 
business network testing also grew and 
travel reversed the trend of the previous two 
years by achieving ﬂat revenue details of this 
are set out in the review of operations on 
pages 22 to 25 on a geographic basis 
revenue by destination showed signiﬁcant 
increases in sales to the americas primarily 
north america and to asia paciﬁc which – in 
a reﬂection of the importance of the region to 
the wireless industry – has become our most 
signiﬁcant region revenue in the uk and 
emea also increased in absolute terms but 
fell as a proportion of overall group revenue 
the proportions of total revenue by region 
were uk 13 2011 16 emea 27 2011 
32 americas 29 2011 27 and rest 
of the world mainly asia 31 2011 25 
in revenue by type the principal changes  
in the year were strong growth in sales of 
software licences and hardwarethirdparty 
equipment which increased by 44 to 
£836m 2011 £580m recurring revenue 
software maintenance and managed 
services increased 15 to £310m 2011 
£27 0m with the proportion of recurring 
revenue 25 2011 29 
cost of sales and gross profit 
cost of sales increased by 31 to £501m 
2011 £382m in line with revenue as a result 
the gross margin remained constant at 59 
with gross proﬁt at £724m 2011 £555m 
within cost of sales the costs of hardware  
and thirdparty products sold on to customers 
increased 47 to £304m 2011 £207m 
most of the increase came from the growth 
in the handset testing business other cost 
of sales mainly staff costs directly associated 
with the delivery of revenue and to support 
the growing number of installed systems 
increased 13 to £197m 2011 £175m 
operating expenses 
total operating expenses in the period 
increased 20 to £499m 2011 £416m 
considerably less than the corresponding 
increase in revenue and gross proﬁt  
a detailed breakdown of operating expenses 
is given in note 35 on page 75 
within the total operating expenses are 
oneoff and noncash items not charged  
to adjusted operating proﬁt and underlying 
operating expenses that are charged to 
adjusted operating proﬁt the latter totalled 
£436m 2011 £379m 
within the £57m increase in underlying 
operating expenses rd costs incurred  
by the wireless businesses increased by 
£46m to £160m 2011 £114m with both 
businesses contributing to the increase in 
response to accelerating requirements from 
customers the handset testing business 
increased investment in its lte 4g hardware 
and software platform during the year it also 
increased investment in the development 
of its iot product an increase in rd 
investment by the network testing business 
was primarily due to the fullyear effect of 
the additional resource acquired with the 
invex product line in january 2011 across 
both businesses £26m of rd costs  
were capitalised in the year 2011 £27m 
mainly on conformance test cases in handset 
testing and the invex benchmarking chassis 
in network testing amortisation of 
capitalised rd increased to £16m 
2011 £12m
other underlying operating expenses 
increased £12m to £276m 2011 £264m 
the main increase was in distribution costs 
particularly in the handset testing business 
to support the larger installed base of testing 
systems at customer sites
after underlying operating expenses adjusted 
operating proﬁt was £288m 2011 £176m 
an increase of 64 adjusted ebitda was up 
54 at £342m 2011 £222m 
oneoff and nontrading operating expenses 
excluded from adjusted proﬁt calculations 
totalled £63m 2011 £37m these included 
amortisation of acquired intangible assets  
of £33m 2011 £36m and a charge for 
sharebased payments of £29m compared  
with an abnormal credit of £01m in the prior  anite annual report and accounts 2012
28
our strategy and progress
year which also included a charge of £03m 
for the costs associated with acquiring the 
invex product line the sharebased payment 
charge in the year included a £14m cost of 
providing for employers’ ni liabilities 2011 
£02m this was particularly high because 
of the strong increase in the share price over 
the year 
after these nonoperational costs the group 
reported an overall statutory operating proﬁt 
of £225m 2011 £139m 
other gains and losses 
other gains and losses which are excluded 
from the calculation of adjusted proﬁt before 
tax were a gain of £05m in the current  
year 2011 £nil these represented gains  
recorded on the ineffective portions of cash 
ﬂow and net investment hedges that related 
to the hedging arrangements settled in 
november 2011 
group finance costs 
despite having an excess of cash over 
ﬁnancial borrowings throughout the year 
the group incurred a net ﬁnance charge of 
£08m 2011 £17m this was principally 
because the borrowings that were in the 
capital structure that was in place until 
30 november 2011 were ﬁxed at the 
relatively high longterm rates available 
when the facilities were put in place in 2006 
while surplus cash earned interest only at 
current low rates the position normalised 
following the expiry of those facilities with a 
net £nil charge for the remaining ﬁve months 
of the year as the small amount of interest 
earned on surplus cash offset the fees 
incurred for the new ﬁve year bank facilities
taxation 
the tax charge for the year on continuing 
operations was £60m 2011 £33m  
the tax rate on the statutory operating proﬁt 
was 269 2011 268 the underlying 
adjusted tax rate on adjusted proﬁt before 
tax was 269 2011 277 
shareholder returns 
after taking account of the factors described 
above adjusted basic earnings per share  
were 72p 2011 40p an increase of 80 
adjusted diluted earnings per share similarly 
increased 76 to 67p 2011 38p  
the statutory basic earnings per share for 
continuing operations was 57p 2011 31p 
as explained in the chairman’s statement 
the board is proposing a signiﬁcantly 
increased ﬁnal dividend of 1125p per share 
2011 0735p making a total for the year 
of 150p 2011 105p which is covered  
48 times by adjusted basic earnings 
the board recognises that as a result of the 
signiﬁcant proposed increase in the ﬁnal 
dividend this year the ratio of payment 
between interim and ﬁnal dividends has 
become unbalanced from the normal one 
thirdtwo thirds ratio it intends to address 
this in the current ﬁnancial year and return  
it to the more normal ratio
balance sheet 
inventories
the carrying value of inventories held by  
the wireless businesses has increased 
signiﬁcantly from £47m at 30 april 2011  
to £102m at 30 april 2012 this reﬂects the 
increasing importance of hardware to both 
wireless businesses the majority of the 
increase is in handset testing where at the 
year end the business was also carrying 
higher than normal inventories of anite 9000 
systems and components in order to ensure 
continuity of supply in the face of high 
demand and extended lead times for certain 
key components inventory in network 
testing also increased over the year to 
support the invex benchmarking product 
launched at the end of the ﬁrst half 
trade and other receivables 
trade and other receivables increased 3  
to £329m at 30 april 2012 2011 £319m 
financial review continued
211
143
308
226
198
392
526
79
265
73
53
77
44
2012 2011
 own product software licence    hardware and thirdparty products   
 software maintenance and support   
 bespoke services systems integration and implemention    managed services 
2010
1225
937
788
45
310
revenue by type
£m
095
2012 2011 2010
150
105
proposed annual dividend
p
43  29
our strategy and progress
within this trade debtors net of provisions 
decreased 4 to £242m 2011 £253m 
despite revenue increasing 31 the 
improvement is largely as result of phasing  
of year end debtors debtor days at 30 april 
2012 were 59 days 30 april 2011 76 days
accrued income revenue taken to the 
income statement but not yet invoiced to 
customers increased by £14m to £42m 
2011 £28m due to the timing of payment 
schedules on longterm contracts in both 
handset testing and travel 
trade and other payables 
trade and other payables increased 24  
to £377m at 30 april 2012 30 april 2011 
£305m this is mainly as a result of the 
increase in overall business over the course 
of the year which resulted in a signiﬁcant 
increase in trade creditors in addition there 
was a £25m increase in deferred income 
amounts invoiced to customers but not 
yet recognised as revenue in the income 
statement to £148m 2011 £123m  
this predominantly represents an increase  
in prebilled maintenance contracts in 
handset testing
provisions
provisions reduced by £25m to £58m at 
30 april 2012 30 april 2011 £83m the 
main reductions were in the £06m deferred 
consideration provision for the invex 
acquisition which was settled in the year 
and the property provision where £21m was 
paid out in the year this included an amount 
paid to change the lease arrangements for 
the travel business’s slough headquarters 
where we have secured longerterm security 
of tenure over the ﬂoorspace required 
settled existing dilapidation responsibilities 
and released early surplus space back to 
the landlord 
cash flow 
cash generated from operations was £310m 
2011 £172m this represented a conversion 
of 91 of adjusted ebitda 2011 77  
cash generated by operations was affected 
by the decrease in provisions and by a net 
working capital increase of £12m 2011 
increase of £33m the latter was mainly 
caused by the increase in inventory although 
it was partially offset in trade creditors as 
described above 
net payments for ﬁnance costs were £09m 
2011 £17m while tax payments increased 
to £54m 2011 £20m a reﬂection of the 
increased proﬁts
the crosscurrency swap liability was ﬁnally 
settled on 31 october 2011 by payment of 
the capped amount of £216m in addition  
the deferred consideration of £06m related 
to the acquisition of invex was paid during 
the year 
capital expenditure in the period increased 
signiﬁcantly to £58m 2011 £35m 
signiﬁcant purchases included £29m  
2011 £16m on anite 9000 development 
equipment as described above a further 
£26m 2011 £27m was incurred on 
capitalised development expenditure 
dividends paid to shareholders totalled 
£32m 2011 £28m an additional £16m 
2011 £54m was incurred on the purchase 
of shares for the company’s employee beneﬁt 
trust the gross cash balance also decreased 
by £100m 2011 £50m as a result of the 
payment of the ﬁnal amount outstanding 
on the longterm loan following its expiry  
in november 2011 this had no impact  
on the group’s net cash which is stated  
net of borrowings
after these movements net cash decreased 
by £108m 2010 net cash decrease of 
£21m the net cash balance at 30 april 2012 
was as a result £169m 30 april 2011 
£277m with no borrowing outstanding  
at 30 april 2012 this also represents the 
gross cash balance 30 april 2011 £377m
borrowings and facilities 
during the year the group arranged new 
banking facilities including a revolving credit 
facility of £200m 2011 £200m and a net 
overdraft facility of £50m 2011 £50m  
the revolving facility is due to expire on 
31 october 2016 and the overdraft is due 
for renewal on 31 july 2012 the group had  
no drawings against its banking facilities  
at 30 april 2012 2011 net borrowings  
of £100m 
in view of the current strong cash position 
the availability of banking facilities the 
maturity proﬁle of debt obligations and 
forecast cash position over the next  
18 months the directors have a reasonable 
expectation that the group has adequate 
resources to continue in operational 
existence for the foreseeable future 
accordingly anite continues to adopt  
the going concern basis in preparing the 
consolidated ﬁnancial statements 
richard amos
group finance director  
2 july 2012
142
2012 2011 2010
310
172
cash generated from operations
£m
80 anite annual report and accounts 2012
30
our strategy and progress
the group uses a range of performance 
measures to manage the three businesses 
within the group in addition each business 
has established its own performance 
indicators that are speciﬁc to its individual 
business the group kpis monitor order 
intake revenue margins research and 
development spend adjusted operating proﬁt 
and headcount in addition to these group 
kpis other speciﬁc measures such as cash 
generation working capital capital 
expenditure product development and  
major project performances are used for each 
business the group changes and reﬁnes the 
kpis regularly depending on the major issues 
that are identiﬁed in the businesses
group key performance indicators kpis
order intake
£m
order intake represents the value of orders 
received from customers in the year it is a 
measure of inyear performance and supports 
future years’ revenue performance 
the order intake in the year increased mainly  
as a result of a 33 increase in orders in our 
handset testing business due to the increasing 
demand for the company’s lte 4g products 
which include the anite 9000 hardware platform 
and a 37 increase in orders in our travel 
business for our com product
30
1520
1166
823
2012 2011 2010
adjusted operating profit
£m
adjusted operating proﬁt measures the operating 
performance of the business before taking into 
account sharebased payments impairment 
and amortisation of acquired intangible assets 
impairment of goodwill restructuring costs 
other gains and losses and recycled hedge losses 
management believes this gives a better 
comparable measure of the true operating 
performance of continuing operations 
the increase in adjusted operating proﬁt 
primarily arises from the higher revenue within 
the handset testing business
64
288
176
119
2012 2011 2010
revenue
£m
revenue represents the amounts derived from 
the provision of goods and services in the year
the increase in revenue reﬂects the strong 
growth in the handset testing business where 
revenue grew by 54 including an increase 
in lte 4g revenues which rose by £172m and 
represented 44 2011 34 of our handset 
testing revenue
31
1225
937
788
2012 2011 2010
research and development total spend
£m
research and development rd total spend 
represents the total cash invested in rd in  
the year before the effect of capitalisation and 
amortisation under ias 38 and shows the total 
amounts the group invests each year on new 
and on enhancing its existing software products
the increase in rd occurred in our wireless 
businesses where in network testing we 
continued to develop the benchmarking tools 
acquired in the acquisition of the invex product 
line last year and in our handset testing business 
where as planned we invested in our anite 9000 
hardware platform and also in the development 
of conformance and interoperability test scripts 32
170
129
126
2012 2011 2010
net revenue margin

net revenue margin is total revenue less 
thirdparty hardware cost as a percentage of 
revenue and is important in measuring the 
proportion of software and own mantime 
services revenue in the business
the net revenue fell as expected due to the 
increased proportion of hardware within 
our handset testing business’s product mix 
we expect the margin to improve as the 
lte 4g products become more mature and  
more lte 4g product software is sold
3
75
78
83
2012 2011 2010
headcount
closing number
headcount measures the number of staff 
employed directly by the group at the end of 
each year and is an important measure to ensure 
the business is not overstaffed in relation to its 
revenue the group maintains a regular review 
of headcount in each business in order to keep 
costs under control
headcount across the group increased by 38 
staff 8 primarily as a result of the increase 
in development and support staff in our handset 
testing business where revenue grew by 54
8
507
469
452
2012 2011 2010 31
our strategy and progress
anite annual report and accounts 2012
our strategy and progress
principal risks and uncertainties
the following are the principal risks that the group is exposed to  
as identiﬁed in the group risk review documented in the corporate 
governance report on pages 40 to 45
global economic and geopolitical risk
description implications mitigation
with the current uncertainty in global economies most notably recently 
around europe which accounts for around 30 of our revenue our business 
could be adversely affected should the weakening cause customers to  
defer their investment plans in light of lower consumer spending equally  
geopolitical issues such as have been seen in north africa and the middle east 
since early 2011 could have an impact on consumer travel plans potentially 
affecting tour operator investment programmes
 in common with many other businesses adverse 
economic conditions could increase our ﬁnancial 
exposure to defaults by customers or by suppliers 
on whom we rely for critical components or 
products equally they could result in customers 
slowing investment plans that have either a 
direct or indirect impact on the demand for our 
products and services this could result in lower 
revenues higher costs or adverse cash ﬂow
 ● the group regularly monitors external 
developments to assess their potential impact 
on the group – and amends plans resources 
and investments accordingly monthly 
assessment of sales pipelines shortterm 
forecasts and feedback from sales personnel 
are also used to assess developments in 
this area
technology risks
description implications mitigation
each of our businesses is a technology leader in its ﬁeld and this position is 
a key element of its competitive positioning technology risks could include 
a failure of a technology development project to deliver an effective and 
efﬁcient solution unforeseen developments in underlying technologies in the 
speciﬁc industry that result in anite products becoming obsolete or progress 
in technology development being made by one or more competitors that 
reduces the market appeal of one or more anite products 
since the decision in 2009 to pursue an inhouse strategy for the provision of 
the hardware platform of handset testing’s lte 4g solution the risk in this 
area has changed with a reduction in the risk that a technology partner might 
fail to provide a competitive platform on which to deploy our software being 
offset by an increase in the risk of our own inhouse developments
a similar change has occurred in the network testing business following 
the purchase in january 2011 of the invex scanner solution which reduces 
the reliance on thirdparty suppliers
 ● any failure to maintain this technology 
leadership could have an adverse impact on 
business through a loss of competitiveness 
or indeed a loss of reputation as a technology 
leader in a speciﬁc ﬁeld 
 ● having to manage more inhouse designed and 
manufactured products exposes the group to 
having increased costs through the requirement 
to writeoff components or ﬁnished products 
should they become obsolete equally costs 
could increase if an inhouse product fails in 
the ﬁeld and requires rectiﬁcation work 
 ● market developments are regularly monitored 
through feedback from customers and sales 
personnel and review of market commentaries 
technology roadmaps are regularly reviewed 
to ensure that they remain relevant 
 ● the move to more inhouse sourced products 
has moved management of that speciﬁc 
element of risk more into our own control 
and the group has subsequently undertaken 
a number of actions to manage and mitigate 
that risk these have included bringing in 
new personnel experienced in areas such as 
hardware design and logistics management 
and also upgrading systems to deal with 
increased challenges of supply chain and 
inventory management  anite annual report and accounts 2012
32
our strategy and progress
principal risks and uncertainties continued
reliance on major customers
description implications
the group has relationships with a number of signiﬁcant customers 
continuing sales to these are an important element of group revenue 
additionally the group is exposed to the credit risk associated with 
these customers
 ● there are only three individual customer groups 
that account for more than 5 of group 
revenue with none over 10 no customer 
accounted for more than 9 of the £252m of 
trade receivables outstanding at 30 april 2012 
 ● despite that given the high gross margin nature 
of most of the group’s revenue the loss of 
one of anite’s major customers could result in 
a signiﬁcant reduction in proﬁts particularly if  
it were accompanied by the inability to collect 
outstanding receivable balances 
mitigation
 ● where possible the group contracts  
with major customers through longterm 
agreements that provide certainty to both 
parties in addition the group undertakes  
a number of customer support business 
development and sales activities to foster 
continued strong relationships with  
major customers 
 ● to mitigate credit risks the group monitors 
the credit reports of major customers it also 
uses other risk management strategies such as 
trade ﬁnance protection and credit insurance 
on a case by case basis
competitiveness
description
each of our businesses operates in highly competitive markets and changes 
in relative competitiveness could have an impact on business levels changes 
could be caused by new market entrants by existing competitors merging or 
changing their focus or strategy or introducing new products that undermine 
the competitive position of existing anite products 
implications mitigation
 ● changes to relative competitiveness could  
result in reduced business volumes or anite 
businesses having to change pricing strategies 
that result in reduced margins this could  
result in us needing to amend or accelerate  
our investment strategies
 ● mitigation strategies in this area include 
regular reviews of sales pipelines and  
actual margins achieved to highlight evidence 
of a change in competitiveness market 
developments are monitored through regular 
feedback from sales personnel and review 
of market commentaries
project delivery risk
description implications mitigation
the success of all group businesses is partially dependent on the successful 
completion of development projects within budget cost and speciﬁcations 
delivery of such projects might be subject to certain technical commercial 
legal customerrelated or economic risks the risk is particularly acute in 
travel where we have a number of customerfunded implementations and 
developments such as com however the risk also exists for internal 
development projects such as the design and production of a new generation 
of the handset testing platform
 ● if a project fails to achieve its goals within  
the budget and timeline expected then it could 
impact anite in a number of ways these could 
include additional costs of completion in the 
case of a ﬁxed price development for a customer 
or in delays in achieving revenue in the case  
of a product being developed via an internal 
development project subsequent effects  
could include a loss of competitiveness or  
loss of reputation that could impact future 
sales prospects
 ● longterm projects are managed according 
to an internal project management standard 
monthly progress reports are compiled and 
variances to plans investigated these reports 
are formally presented to senior management 
on a monthly basis for the largest projects 
periodic updates are also given to the 
executive directors and main board  33
our strategy and progress
human resource and organisation risks
description implications
implications
the group’s performance and its ability to mitigate signiﬁcant risks within its 
control depend on its employees and management teams future success will 
depend to a large extent on the group’s ability to attract retain and motivate 
its people
 ● if the group loses the services of key people or 
is unable to attract and retain employees with 
the right capabilities and experience it would  
be likely to have an effect on the group’s ability 
to implement its strategies and business plans
 ● the group’s credit risk in relation to cash and 
derivative ﬁnancial instruments is explained 
further in note 24i the credit risk of trade 
receivables is detailed in note 18 and discussed 
further in the risk of “reliance on major 
customers” section on page 32 
 ● if the group has insufﬁcient liquid resources it 
may not be able to react quickly enough to take 
advantage of market opportunities
 ● the sensitivity of the overseas investments 
to exchange rate movements can be seen 
in note 24f
mitigation
 ● the group uses a variety of techniques to 
attract retain and motivate its staff with 
particular attention paid to those in key roles 
techniques include the regular review of 
remuneration packages regular communication 
with all staff and annual performance reviews 
in addition a groupwide review of staff 
contingency plans was undertaken in the year 
with plans put in place for speciﬁc areas of risk 
mitigation
 ● to mitigate counterparty credit risk the 
group’s policy is to invest surplus cash with 
highly rated ﬁnancial institutions only and to 
limit each counterparty deposit to a maximum 
value of £10m the mitigation of credit risk  
is covered under the “reliance on major 
customers” section on page 32 
 ● the group’s policy is detailed in note 24j 
during the year the group entered into a 
ﬁveyear revolving credit facility which 
although undrawn at the year end remains 
available to support the group’s requirements
 ● the group seeks to hedge foreign currency 
cash ﬂows and translations of foreign currency 
denominated monetary assets and liabilities
by hedging a proportion of the forecast future 
cash ﬂows details of this policy can be found 
in note 24h
financial risks
description
the group is exposed to a number of ﬁnancial risks
credit risk
our operations are exposed to the risk that customers and counterparties 
to our transactions that owe us money will not perform their obligations 
liquidity risk
the group’s business is ﬁnanced through cash generated from ongoing 
operations and bank lending facilities 
foreign currency risk
the group has foreign currency denominated net assets and earnings that are 
not hedged therefore a movement in the exchange rate will have an impact 
on both reserves and the income statement anite annual report and accounts 2012
34
management and governance
nigel clifford
nonexecutive director
nigel 53 joined the board on 1 april 2009 
he has wide experience across a number  
of sectors including the wireless telecoms 
and software sectors he is currently ceo 
of procserve limited and was previously  
ceo at micro focus international plc 
symbian limited and tertio telecoms 
limited and senior vice president  
service delivery at cable  wireless
paul taylor
†
nonexecutive director
chairman of the audit committee
paul 47 was appointed as a nonexecutive 
director on 5 october 2009 and became 
chairman of the audit committee in 
december 2009 he is also nonexecutive 
director and chairman of the audit 
committee of ubisense plc and escher group 
holdings plc and nonexecutive director  
of digital barriers plc from march 2001  
until january 2011 paul was group finance 
director with aveva group plc he is a 
fellow of the association of chartered 
certiﬁed accountants
david hurstbrown
†
senior independent
nonexecutive director 
chairman of the remuneration 
and nomination committees
david 63 joined the board on 23 august 
2004 becoming senior independent director 
in december 2009 following a career in  
the investment banking industry david has 
been acting as a nonexecutive director for 
a variety of public and private companies 
these include imagination technologies 
group plc and ffastfill plc david is a fellow 
of the securities institute
directors
david hurstbrown
nigel clifford
paul taylor  35
management and governance
clay brendish cbe
†
nonexecutive chairman
clay 65 was appointed as nonexecutive 
chairman in october 2005 prior to his 
retirement in may 2001 he was executive 
deputy chairman of cmg now part of 
logica having joined the board when it 
acquired admiral plc the software services 
company he cofounded in 1979
clay is also nonexecutive chairman of 
sthree plc and is also a member of the 
administrative board of elster group se  
he is a trustee of economist newspapers 
limited and chairman of the test and 
itchen association limited
christopher humphrey
chief executive
christopher 55 joined the board in february 
2003 as group finance director and was 
appointed chief executive of the company 
on 31 december 2008 he has held senior 
positions in ﬁnance at conoco eurotherm 
international plc and critchley group plc
christopher humphrey
clay brendish
richard amos
richard amos
group finance director and 
company secretary
richard 45 was appointed to the board 
as group finance director on 2 november 
2009 assuming the additional responsibility 
of company secretary on 17 february 2010 
he was previously group finance director at 
agilisys holdings limited a private it services 
company and group finance director and 
company secretary at two listed technology 
groups retail decisions plc and vega 
group plc
†   member of the audit remuneration and 
nomination committees 
   member of the remuneration and 
nomination committees 
 member of the nomination committee anite annual report and accounts 2012
36
management and governance
the directors present their report on the affairs of the group together with the audited ﬁnancial statements for the year ended 30 april 2012 
principal activities 
the group is a leading worldwide provider of hardware and software solutions systems integration and managed services within its core markets of wireless and travel 
analyses of turnover proﬁt on ordinary activities and net assets are given in note 3 on pages 72 to 75 
business review and future developments 
the company is required by the companies act 2006 to include a fair review of the group’s business and a description of the principal risks and uncertainties facing  
the group the required information relating to the review of the year’s operations business model key risks strategy trading outlook and future developments is 
contained in the chairman’s statement on page 4 the chief executive’s review on page 6 the financial review on page 26 and the corporate governance report on  
page 40 of this report 
where the annual report contains forwardlooking statements these are made by the directors in good faith based on the information available to them at the time 
of their approval of this report consequently such statements should be treated with caution due to the inherent uncertainties including both economic and business 
risk factors underlying such forwardlooking statements or information 
results 
the audited accounts of the group for the year ended 30 april 2012 are set out on pages 60 to 117 the group proﬁt for the year after taxation was £185m 2011 £94m 
dividends
the directors recommend a 53 increase in the ﬁnal dividend to 1125p 2011 0735p per ordinary share which if approved by shareholders at the 2012 annual general 
meeting agm will be due for payment on 23 october 2012 to holders of ordinary shares on the register at the close of business on 28 september 2012 this together 
with the interim dividend of 0375p per ordinary share 2011 0315p paid on 17 february 2012 will make a total dividend for the year of 150p per ordinary share up 43 
on the previous year 2011 105p per ordinary share 
research and development 
the total expenditure in the year within continuing operations was £170m 2011 £129m of which £160m was expensed in the income statement 2011 £114m  
after net capitalisation of £10m 2011 £15m this expenditure was incurred on product development and enhancement in our wireless division 
acquisitions and disposals 
there were no acquisitions or disposals during the year
share capital 
during the year the company allotted 195603 ordinary shares with a nominal value of 1125p each in respect of the exercise of options under anite’s share option plans 
the company’s authorised ordinary share capital as at 30 april 2012 comprised 355555556 ordinary shares of 1125p each and the issued ordinary share capital 
comprised 299131879 2011 298936276 ordinary shares of 1125p each details are set out in note 27 on pages 99 and 100 
purchase of own shares 
the company obtained shareholder authority at the last agm held on 15 september 2011 to purchase up to 29894628 ordinary shares with a nominal value of  
1125p each being 10 of the issued ordinary share capital of the company as at 20 june 2011 which remains outstanding until the conclusion of the next agm 
on 13 september 2012 
the company may not pay less than the nominal value currently 1125p each for each ordinary share purchased exclusive of expenses and may not pay more per 
ordinary share than the higher of i 5 over the average of the middle market closing price of the ordinary shares based on the daily ofﬁcial list of the london stock 
exchange for the ﬁve business days immediately before the day of purchase exclusive of expenses and ii the price of the last independent trade and the highest 
current independent bid on trading venues where the purchases are carried out exclusive of expenses 
the company did not purchase any shares for treasury or for cancellation during the year 
the company will put a resolution to shareholders at the 2012 agm to give it authority to purchase up to 29913188 ordinary shares with a nominal value of 1125p each 
being 10 of the issued ordinary share capital of the company as at 30 june 2012 
directors 
details of the persons who were directors during the year can be found in the report on corporate governance which starts on page 40 full biographical details of the 
company’s directors at the date of this report are given on pages 34 and 35
report of the directors 37
management and governance
the company’s articles of association require that onethird of the directors must retire at each agm and that each director must offer himself for reelection at least 
once every three years the 2010 uk corporate governance code guidance for ftse 350 companies suggests that all directors should offer themselves for reelection 
annually although the company was not a member of the ftse 350 index during the year the board has voluntarily agreed that in accordance with that guidance 
all the directors will offer themselves for reelection at the 2012 agm the company was appointed to the ftse 350 in june 2012
the board is satisﬁed that each of the directors standing for reelection continues to perform effectively and demonstrates commitment to his role including 
commitment of time to board and committee meetings and his other duties
directors’ interests 
the beneﬁcial interests of the directors holding ofﬁce at 30 april 2012 and their immediate families in the capital of the company together with any changes in 
interests since the end of the ﬁnancial year are as set out in the remuneration report which starts on page 46 no director has or had during the period under review 
any interest in any contract of signiﬁcance with the company or any of its subsidiaries other than his own employment contract 
indemnities and insurance 
directors and ofﬁcers of the company and its subsidiaries beneﬁt from directors’ and ofﬁcers’ liability insurance cover in respect of legal actions brought against them 
in addition directors of the company are indemniﬁed in accordance with the company’s articles of association to the maximum extent permitted by law all directors 
have deeds of indemnity that are in force as at the date of this report 
these indemnities are available for inspection by shareholders at the company’s registered ofﬁce during normal business hours and will be available for inspection  
at the agm 
neither the insurance nor the indemnities provide cover where the relevant director or ofﬁcer has acted fraudulently or dishonestly 
articles of association 
the company adopted new articles of association at the 2009 agm no changes to these articles are proposed at the 2012 agm a copy of the current articles of 
association can be inspected at the company’s registered ofﬁce during normal business hours and will be available for inspection at the agm 
major shareholders 
as at the date of this report the company has been notiﬁed of the following holdings of 3 or more of the total voting rights attaching to its issued share capital 
percentage of issued capital  

bt pension scheme trustees limited         990
old mutual asset managers uk limited 514
prudential plc         502
aberforth partners llp         490
hawksford jersey ltd as trustee of the anite employee share ownership plan  464 
legal  general investment management limited  399
kames capital         337
corporate governance 
details of the group’s compliance with the provisions set out in the uk corporate governance code can be found in the corporate governance report set out on  
pages 40 to 45 
charitable contributions and voluntary initiatives 
contributions by the group during the year for charitable purposes amounted to £15797 2011 £22745 the group does not make any political donations 
financial risk policies 
a summary of the group’s treasury policies and objectives relating to ﬁnancial risk management including exposure to associated risks is set out in note 24 
on pages 93 to 97  anite annual report and accounts 2012
38
management and governance
report of the directors continued
employees 
the energy commitment and passion of our employees are vital to our business the company strives to create a working environment which encourages people to 
be individuals and develop their full potential within a framework of shared values and goals to achieve this the group is committed to a policy which provides all 
employees and potential employees with equality of opportunity for selection and development regardless of age gender nationality race creed disability or sexuality 
in the event of employees becoming disabled every effort is made to ensure that their employment with the company continues and that appropriate training  
is arranged for them employees are provided with information through myanitecom the group’s global intranet roadshows and other internal communications  
the views and ideas of employees are sought through discussion line management and focus groups 
the company operates a range of employee share schemes for executive directors and a small number of senior executives in the uk and overseas as set out in the 
remuneration report on pages 46 to 55 since august 2005 the company has offered all uk employees an enhanced share incentive plan which currently matches on  
a oneforone basis the number of shares purchased monthly by employees the company will be seeking shareholder approval to renew this plan for a further ten years 
at the 2012 agm the company also operates the anite uk sharesave plan these schemes provide for options to be granted over shares using new issue shares or 
treasury shares as well as market purchase shares
environmental policy 
the company supports the protection of a sustainable environment the group’s activities which are mainly ofﬁcebased do not produce harmful waste or emissions and 
the group is a constituent of the ftse4good index of ethically sustainable companies while our operations by their nature have minimal impact on the environment 
we recognise our responsibilities in this respect 
the company is therefore committed to 
 ● complying with the relevant environmental legislation regulations and industry standards of the countries in which it conducts business 
 ● reducing the output of emissions that may have an adverse impact on the environment 
 ● minimising the consumption of energy and water used in its facilities 
 ● reducing waste and wherever practicable reusing and recycling consumables eg paper toner cartridges and computer equipment and disposing of nonrecyclable 
items in an environmentally acceptable manner and 
 ● where practicable purchasing environmentally sound goods and services 
in order to achieve these objectives the company is building awareness and promoting initiatives to encourage employees to become fully engaged 
change of control 
all the company’s employee share schemes contain provisions relating to a change of control of the company following a takeover bid under these provisions a change 
of control of the company would normally be a vesting event facilitating the exercise or transfer of awards subject to any relevant performance conditions being 
satisﬁed or waived at the discretion of the remuneration committee 
the company is not party to any other signiﬁcant agreements that take effect alter or terminate upon a change of control following a takeover bid other than with regard 
to the company’s syndicated revolving bank facility agreement which provides that on a change of control the majority lenders have the ability to cancel and seek 
repayment of all outstanding loans 
payment of suppliers 
given the international nature of its operations the group does not operate standard terms in respect of payments to suppliers subsidiary operating companies 
are responsible for agreeing the terms and conditions and payment terms with their suppliers it is the group’s policy to agree with all suppliers where practicable 
appropriate terms of trade and to operate within those terms trade creditors at 30 april 2012 represented on average 56 days’ credit 2011 33 days for the group 
and 48 days’ credit for the company 2011 42 days 
going concern 
the directors acknowledge the latest guidance on going concern the directors believe that the group has a robust business model as evidenced by the trading of the 
business over the past 12 months strong free cash ﬂow generation and is compliant with all its banking covenants in making their assessment of going concern the 
directors consider the budgets including the wireless research and development commitments threeyear plans and cash forecasts for the following 18 months together 
with the forecast covenant positions in addition the directors take into account the current strong net cash position and the availability of additional banking facilities 
as set out in note 24j after considering the above the directors have a reasonable expectation that the group has adequate resources to continue in operational 
existence for the foreseeable future accordingly anite continues to adopt the going concern basis in preparing the consolidated ﬁnancial statements  management and governance
 39
disclosure of information to auditors 
at the date of this report as far as each of the directors is aware there is no relevant audit information of which the company’s auditors are not aware each of the  
directors has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that  
the company’s auditors are aware of that information 
this information is given and should be interpreted in accordance with the provision of section 418 of the companies act 2006 
reappointment of auditors 
the board has considered and recommends the reappointment of deloitte llp as auditors deloitte llp have expressed their willingness to continue in ofﬁce as auditors 
and a resolution proposing their reappointment will be proposed at the forthcoming agm 
annual general meeting agm 
the agm of the company will be held at 12 noon on thursday 13 september 2012 at 353 buckingham avenue slough berkshire sl1 4pf the notice setting out details  
of the business to be considered at the meeting is sent to shareholders with this annual report 
by order of the board and signed by 
richard amos 
company secretary 
2 july 2012 anite annual report and accounts 2012
40
management and governance
corporate governance report
the board is committed to the highest standards of good corporate governance it follows an approach that complies with provisions of the uk corporate governance 
code dated june 2010 the “code” this report sets out the company’s compliance with the code 
statement of compliance with the code 
the board considers that anite has throughout the year complied with the relevant provisions set out in sections a to e of the code apart from the requirement b42 
for the chairman to regularly agree with each director his training and development needs currently each director is expected to take responsibility for his own training 
needs with details of relevant seminars made available to them by the company secretary this has not been felt to present any additional risk to the group and will be 
addressed in the current ﬁnancial year 
further explanations of how the principles and supporting principles have been applied are set out below in the remuneration report and in the report of the  
audit committee 
board and committee composition
anite board
clay brendish nonexecutive chairman
christopher humphrey chief executive
richard amos group finance director  
and company secretary
david hurstbrown senior independent 
nonexecutive director
nigel clifford nonexecutive director
paul taylor nonexecutive director
audit committee
paul taylor chairman
clay brendish
david hurstbrown
remuneration committee
david hurstbrown chairman 
clay brendish
nigel clifford
paul taylor
nomination committee
david hurstbrown chairman 
clay brendish
christopher humphrey
nigel clifford
paul taylor
the board 
the board of directors is the body responsible for corporate governance for establishing policies and objectives and for the stewardship of the group’s resources  
in accordance with paragraph a2 of the code it is the company’s policy that the roles of chairman and chief executive are separate with their roles and responsibilities 
clearly divided and recorded the chairman is responsible for leadership of the board ensuring its effectiveness and setting its agenda he also ensures that 
communication with shareholders is effective and facilitates the contribution of the nonexecutive directors the chief executive is responsible for implementing the 
strategy agreed by the board as a whole and for managing the group currently the board is made up of the nonexecutive chairman the chief executive the group 
finance director and three nonexecutive directors david hurstbrown is the senior independent director there have not been any changes to the board during this 
ﬁnancial year the biographies of the directors as at the date of this report are given on pages 34 and 35 
the chairman was considered to be independent on his appointment to the board it is the opinion of the board that the three nonexecutive directors are independent 
of management and have no business or other relationship which could interfere materially with the exercise of their judgement in relation to the business of the 
company or the group 
the current board includes a balance of executive and nonexecutive directors so that no individual or small group of individuals can dominate the board’s decisionmaking 
the directors believe it is essential that the company has an effective board which is collectively responsible for the longterm success of the company 
the board operates formally through regular scheduled board meetings and there is also frequent communication between the directors outside these meetings 
including as members of relevant committees the board met formally 10 times during the year with a further 24 ad hoc meetings convened to deal with speciﬁc matters 
requiring board consideration or approval details of attendance at the formal meetings are given in the table on page 42 during the year the board also attended 
detailed strategy presentations from the divisional managing directors and met both formally and informally with the management teams of the three businesses   41
management and governance
the chairman and the nonexecutive directors meet without executive directors present at least once annually and the nonexecutive directors led by the senior 
independent director meet at least once annually to assess the performance of the chairman the senior independent director and other nonexecutive directors  
are satisﬁed that the chairman continues to perform effectively and demonstrates commitment to his role including commitment of time to board and committee 
meetings and his other duties
the regular and timely provision of information to the board is ensured through the monthly preparation and circulation to all board members of the chief executive’s 
report which reports on operational matters and the group finance director’s report which provides the monthly management accounts and other relevant ﬁnancial 
information and which also covers corporate governance corporate social responsibility and matters concerning the company’s shares share schemes and shareholders 
other matters are tabled on a regular basis at board meetings or are reported to the board as appropriate 
the board has agreed a formal schedule of matters reserved speciﬁcally for its decision which include 
 ● strategy and objectives 
 ● business risks 
 ● business plans and budgets 
 ● changes in capital and corporate structure 
 ● accounting policies and ﬁnancial reporting 
 ● internal controls and business risk factors 
 ● major contracts 
 ● capital projects 
 ● acquisitions and disposals 
 ● communications with shareholders and 
 ● board membership 
the board has delegated the normal operational management of the company to the executive directors who have direct responsibility for all operations and activities 
the company currently has two executive directors supported by an executive team which comprises the managing directors of the handset testing network testing 
and travel businesses
the roles of group finance director and company secretary are combined which is felt appropriate given the size and complexity of the group all directors have access 
to the advice and services of the group finance director and company secretary who is responsible for ensuring that board procedures and applicable rules and 
regulations are observed the group finance director is also responsible for human resources within the group there is an agreed procedure for directors to obtain 
independent professional advice paid for by the company 
in accordance with the company’s articles of association onethird of the board is required to retire by rotation each year and each director must offer himself for 
reelection once every three years in addition any director appointed during the year will stand for election at the next general meeting ensuring that each board 
member faces reelection at regular intervals however the board has decided to voluntarily adopt the code requirement for ftse 350 companies and requires all 
directors to offer themselves for reelection annually this will apply for the agm in 2012
committees of the board 
the board’s committees meet regularly to enable them to discharge their responsibilities each committee has terms of reference which are reviewed regularly by  
the board copies are available on request from the company secretary or on the group’s website wwwanitecom
following formal decisionmaking the board may on occasion delegate authority to a committee consisting of any two directors to approve the detailed execution 
of an agreed course of action within strict parameters 
audit committee 
the report of the audit committee on pages 56 and 57 includes details of the audit committee and its work 
remuneration committee 
the remuneration report on pages 46 to 55 includes details of the remuneration committee and its work  anite annual report and accounts 2012
42
management and governance
corporate governance report continued
nomination committee 
the nomination committee comprises the chairman the three independent nonexecutive directors and the chief executive it is chaired by david hurstbrown  
the senior independent director the committee may invite others including external advisers to attend its meetings as appropriate the nomination committee 
met once during the year details of attendance at the meeting are shown in the table below 
the principal role of the nomination committee is to advise and make recommendations to the board with regard to the size structure and composition of the board 
the appointment of new directors and the reappointment of existing directors the committee follows formal rigorous and transparent procedures when appointing 
new directors which include the preparation of a job description the use of external advisers to facilitate the search and the evaluation of candidates according to 
objective criteria all shortlisted candidates are interviewed by at least two members of the committee 
the nomination committee have considered the reelection of clay brendish and david hurstbrown who have been directors for six years and seven years respectively 
the committee concluded that both brought considerable value to the company and that the interests of the company were best served by recommending them for 
reelection the committee considered that the considerable changes made to the composition of the board in 2009 meant that there was no need at this time to make 
further changes
in arriving at its recommendation the committee considered current guidelines and guidance on board diversity it recognised the lack of female representation on the 
board but felt that any gains to be had from addressing that now would be more than outweighed by the loss of skills that such a change would cause the board does  
not consider that increasing its size to achieve greater diversity would be in the interests of shareholders at this time
board appointments and attendance 
the following tables detail the current board appointments and the attendance of directors at meetings of the board and board committees during the year ended  
30 april 2012 
board appointments
 date of service contract or letter of unexpired term as at  
director appointment or reappointment the date of this report
clay brendish nonexecutive chairman 8 october 2011 two years three months
christopher humphrey chief executive 3 february 2003 rolling one year 
richard amos group finance director and company secretary 2 november 2009 rolling one year 
david hurstbrown nonexecutive director  
   senior independent nonexecutive director 24 august 2010 one year two months
nigel clifford nonexecutive director 1 april 2012 two years 9 months
paul taylor nonexecutive director 5 october 2009  three months
attendance at meetings
audit remuneration nomination
board committee committee committee
meetings during attended during meetings during attended during meetings during attended during meetings during attended during 
the year the year the year the year the year the year the year the year
chairman
clay brendish 10 10445511
executive directors
christopher humphrey 10 10 – 4 – 3 1 1
richard amos 10 10 – 4 – 3 – 1
nonexecutive directors
david hurstbrown 109445511
nigel clifford 10 10 – 4 5511
paul taylor 10 10445511
 attended by invitation   43
management and governance
terms and conditions of appointment of the nonexecutive directors 
nonexecutive directors are normally appointed for a term of three years these appointments are subject to reelection by shareholders the terms and conditions  
of the appointment of the nonexecutive directors are available for inspection by any person at ancells business park harvest crescent fleet hampshire gu51 2uz  
or the company’s registered ofﬁce during normal business hours and at the annual general meeting of the company 
board performance evaluation and training 
the board as part of its commitment to ensure its effectiveness and to evaluate its performance undertook an evaluation of its performance and that of its directors 
during the year 
this evaluation was undertaken by edisbates associates limited an external independent consultant covering the performance of the board and each of the 
committees in connection with a formal evaluation of each committee’s assessment of its performance and effectiveness edisbates associates limited has no  
other connection with the company
the board and each of its principal committees were found to be operating effectively speciﬁc outcomes include suggested improvements to the format of the annual 
strategy away day building on the work already begun on a formal executive succession plan introducing more formality into the operation of the nomination 
committee and minor changes affecting the content and circulation of board papers
the evaluation of board performance will continue to be conducted annually with external evaluations carried out as deemed necessary to ensure that the process 
is robust
during the year detailed succession planning was carried out to document detailed succession plans for all the senior executivesmanagers throughout the group 
these plans will be reviewed and updated as necessary to ensure they are kept up to date
induction and development of directors 
all new directors receive a comprehensive tailored induction to the company including meeting major shareholders and advisers as required 
individual directors are expected to take responsibility for identifying their training needs and to take steps to ensure that they are adequately informed about the 
company and their responsibilities as a director in addition the company has a continuing professional approach to assist the directors in discharging their responsibilities 
effectively this is achieved through brieﬁngs on business issues on legal and accounting matters and on changes in corporate governance with attendance at external 
seminars where appropriate 
key performance indicators kpis 
the group uses a range of performance measures to measure and manage the businesses within the group in addition the divisions have established their own 
performance indicators that are speciﬁc to their individual businesses 
the group kpis for the year in review monitored order intake revenue net revenue margin research and development spend adjusted operating proﬁt and headcount 
details are set out on page 30
in addition to these group kpis other measures are used covering speciﬁc divisional measures such as cash generation working capital management capital expenditure 
product development progress and major project performance 
the group reviews and reﬁnes the kpis regularly dependent on the major issues that are identiﬁed in the businesses anite annual report and accounts 2012
44
management and governance
corporate governance report continued
policies approval limits delegation and compliance 
the board sets groupwide policies including authority procedures and group accounting and procedures manuals which are adopted by each subsidiary local managing 
directors and finance managers are required to certify each half year that they have complied with the policies as explained on page 57 the group has established  
a limited internal audit function this function reviews compliance with policies each year and reports to the audit committee on its ﬁndings 
included in group policies are project management processes that are required to be followed for all major development projects in the group the group employs 
a group director of project and programme management to develop implement and monitor these policies included within the policies are regular reporting 
requirements including for the largest projects regular updates to the board 
budgetary process and financial reporting 
the group undertakes annually a rigorous budgeting exercise that follows on from an annual strategic planning process the output of the budgeting exercise is a 
boardapproved detailed ﬁnancial plan with monthly proﬁt and loss balance sheet cash ﬂow and key performance indicator projections monthly management reporting 
of actual performance against these targets and monthly revised forecasts takes place with analysis of signiﬁcant variances these reports are reviewed via monthly 
business reviews attended by the chief executive the group finance director the managing director of the relevant business unit and its senior management team  
the chief executive and the group finance director produce monthly summary reports to the board which are reviewed at the board meeting 
management of the group 
the board has overall responsibility for the group there is an executive committee formed of the chief executive the group finance director and the managing director 
of each of the businesses subject to deﬁned approval limits responsibility for the operations of each business is delegated to the managing director of that business  
who has a separate management team to manage the daytoday operations stafﬁng skills and resource levels within business units are reviewed regularly to ensure 
adequacy with a speciﬁc review done annually as part of the strategy and budget process in addition there are staff employed at a group level in the areas of ﬁnance 
human resources project management and it infrastructure to deﬁne group policy and ensure compliance where speciﬁc skill shortfalls are identiﬁed the group 
employs external advisers subject to deﬁned approval levels 
risk and internal control 
the directors have overall responsibility for ensuring that the group maintains a sound system of internal control and risk management the internal control systems  
are designed to meet the needs of the group and the risks to which it is exposed there are limitations in any system of internal control and accordingly even the most 
effective system can provide only reasonable and not absolute assurance against material misstatement or loss 
there is an ongoing process in place for continually identifying assessing and managing the material risks faced by the group this board retains responsibility for this 
process delegating daytoday responsibilities to the executive directors this process is regularly reviewed by the board complies fully with turnbull guidance and has 
been in place throughout the year under review and to the date of this report 
the audit committee is delegated responsibility for reviewing the effectiveness of the internal control process as detailed on pages 56 and 57 
the key procedures that the board has established and which are designed to provide effective internal control for the group are as follows 
identification mitigation and monitoring of business risks 
identiﬁcation of business risks is an integral part of the system of internal control the potential existence of new risks is continually being assessed through monthly 
operational business review meetings monthly board meetings and other ad hoc assessments in addition on an annual basis the board considers the principal risks of 
the group and each of the business units this is done in conjunction with the annual strategy review and the annual budgeting exercise risk registers are documented 
and mitigation strategies are considered and implemented where possible these include the purchasing of insurance where appropriate monitoring processes are also 
designed to ensure regular reporting of indicators and impacts of risks a “whistleblowing” policy is in place to enable the conﬁdential reporting of possible malpractice 
or dishonesty 
material risks
the principal risk factors that have been identiﬁed by the risk management process which may affect the group’s business are set out on pages 31 to 33 these are not  
all within the group’s control the list sets out the major risks the potential impact and the mitigation strategies in place to limit the impact should the risk materialise 
other risks besides those listed may also affect the group  45
management and governance
relations with shareholders 
communications 
the board considers effective communication with its investors whether institutional private or employee shareholders to be extremely important 
the company reports formally twice a year with the halfyear results announcement and the preliminary announcement of the fullyear results an interim statement  
is published on the company’s website in december and the annual report and accounts is published in july in addition as required under article 6 of the transparency 
directive the company issues an interim management statement during each half year these reports are available on wwwanitecom
the company makes other announcements from time to time which can also be found on wwwanitecom
members of the board meet institutional investors regularly to provide an opportunity to discuss in the context of publicly available information the progress of  
the business institutional investors and analysts are also invited to attend brieﬁngs by the company following the announcements of the annual and interim results 
during the year the nonexecutive directors met a number of major shareholders individually 
the chairman and the senior independent director are available to shareholders on all matters relating to governance 
annual general meeting agm 
the company’s agm will be held on 13 september 2012 at the company’s registered ofﬁce in slough the notice of meeting is sent to shareholders at least 20 working 
days before the agm the directors encourage the participation of private shareholders at the agm and are available for questions both formally during the meeting  
and informally afterwards the chairmen of the audit remuneration and nomination committees are normally available to answer questions at the agm
approved by the board and signed on its behalf 
richard amos 
company secretary 
2 july 2012 anite annual report and accounts 2012
46
management and governance
this report has been prepared in accordance with the companies act 2006 and associated legislation the principles of the 2010 corporate governance code and meets 
the relevant requirements of the listing rules of the financial services authority as required by the relevant legislation a resolution to approve the report will be 
proposed at the annual general meeting agm of the company at which the ﬁnancial statements will be presented for approval 
at the agm in 2011 the resolution on adoption of the remuneration report was passed albeit with a sizeable minority of around 20 either voting against or abstaining 
in recognition of this the committee has this year consulted more closely with seven of the largest shareholders who account for approximately 40 of the share 
capital during the process of determining policy for the forthcoming ﬁnancial year and drafting this report the proposals presented herein reﬂect the outcome of those 
discussions in arriving at these proposals the committee has also taken note of the speciﬁc issues that it understands were the subject of last year’s shareholder 
concerns in particular it has restructured the ceo’s salary package to remove the grant of options in lieu of basic salary increases and has restructured the performance 
conditions associated with this year’s grant of psp incentives to remove the condition that was seen as rolling retesting by some shareholders
the relevant legislation requires the independent auditors to report to the company’s shareholders on certain speciﬁed matters and this report has therefore been split 
into separate sections for the unaudited and audited information
unaudited information  
remuneration committee 
the remuneration committee is a committee of the board and comprises the nonexecutive directors who are independent of management and free from any  
business or other relationship that could interfere with the exercise of their independent judgement the company chairman who was independent on appointment  
is also a member 
during the year membership of the committee was as follows david hurstbrown chairman of the committee clay brendish nigel clifford and paul taylor 
the committee met ﬁve times during the year details of attendance at the meetings are shown in the table in the corporate governance report on page 42 
the principal function of the committee is to make recommendations to the board on the remuneration policy for executive directors it is also responsible for setting 
the individual remuneration packages for the chairman in his absence for certain other members of the executive management and for monitoring and approving  
the operation of all sharebased incentive arrangements the committee also determines the terms and conditions of employment of the executive directors 
the committee operates within agreed terms of reference which are posted on the company’s website 
advice and assistance 
new bridge street a trading name of aon hewitt limited part of aon plc is the committee’s independent adviser on executive remuneration and employee share 
schemes neither new bridge street nor any other part of aon plc provided other services to the company during the year the group finance director provides the 
committee with information and assistance and only attends meetings by invitation the chief executive regularly attends meetings by invitation to provide his  
insight on business objectives the individual performance of his direct reports and pay and conditions throughout the group no individual is present when their  
own remuneration is being speciﬁcally discussed 
remuneration policy 
main principles 
the company’s objective is to attract retain and incentivise highcalibre executives who can drive the business forward and increase shareholder value to meet this 
objective the company follows three key principles 
 ● total rewards are designed to be competitive with the remuneration package of each executive director and his direct reports benchmarked regularly against 
companies of a similar size and in similar markets 
 ● incentivebased rewards are seen as an important part of each executive director’s total remuneration and are designed to drive and reward exceptional performance 
and
 ● longterm incentive arrangements are designed to align the interests of the executive directors and senior managers with those of the shareholders and to support 
the company’s business strategy 
the committee also ensures that when determining the executive directors’ remuneration packages due account is taken of pay and employment conditions elsewhere 
in the group in this regard the committee ensures via the chief executive’s and group finance director’s attendance at certain meetings that it is kept fully abreast  
of all relevant groupwide remunerationrelated issues 
the chairman of the committee also meets with a number of major investors to discuss proposed remuneration and incentive plans for the executives giving them the 
opportunity to raise any related issues of concern before they are implemented
remuneration report  47
management and governance
the committee ensures that remuneration structures neither encourage nor reward inappropriate operational risktaking and are applied with due account taken of  
the company’s risk policies and systems in addition the committee ensures that the incentive structures for executive directors and senior managers will not raise 
environmental social or governance esg risks by inadvertently motivating irresponsible behaviour more generally with regard to overall remuneration structures  
there is no restriction on the committee that prevents it from taking into account esg matters 
reward structure 
the executive directors’ total remuneration packages consist of 
 ● base salary 
 ● annual performance bonus 
 ● pension contributions group finance director only 
 ● other beneﬁts and allowances and 
 ● sharebased longterm incentive arrangements
base salary 
base salary is reviewed annually and is set with reference to salary levels for similar roles in other comparable companies in the software and computer services sector 
and the market generally it also takes into account the personal performance and contribution to corporate performance by the individual the factors for comparability 
include market sector size and business complexity
for the 2012 review the remuneration committee paid particular regard to the appropriate positioning of the executive directors’ salaries taking into account the 
signiﬁcant growth in anite’s business and share price over the last few years and hence its relative comparative position within the market when christopher humphrey 
was ﬁrst appointed to the role of ceo in december 2008 the company had a market value of around £85 million at the time of his appointment to chief executive 
together with richard amos’ appointment as group finance director in 2009 their salaries were set at conservative levels to reﬂect in part this relative market positioning
since december 2008 the company’s market capitalisation has more than quadrupled to approximately £350 million at the time of writing this represents a total 
shareholder return over the period of over 300 compared to around 50 across the ftse all share over the same time the company has recently been promoted  
to the ftse 250 index the company’s revenue and adjusted proﬁt before tax “pbt” have also increased by 36 and 55 respectively over the same period 
demonstrating the increased size of the group
in the view of the committee this excellent performance represents a stepchange in the size of the group and the responsibilities involved in running the group 
therefore following consultation with the leading shareholders of the company the committee concluded that the salary reviews for mr humphrey and mr amos  
for 2012 should reﬂect this fundamental shift in market position 
in addition other factors that the committee took into account when considering salary increases for the executive directors for 2012 were
 ● the exceptional performance of the individuals concerned their importance to the group and their contribution to restoring shareholder value and ﬁnancial stability 
to the group over the last few years 
 ● when mr humphrey and mr amos were appointed into their roles both their salaries were deliberately set at a signiﬁcant discount to their predecessors to reﬂect the 
fact that they were new to their roles and to provide scope for future salary rises as they matured into these and
 ● in mr humphrey’s case the fact that he has not had a salary increase for the period since his appointment in 2008 other than the consolidation of car allowance and 
the “oneoff” grant of nil cost options worth approximately £15000 in 2011
taking these factors into account the remuneration committee has awarded “underlying” base salary increases to both mr humphrey and mr amos of 122 
furthermore in common with other senior executives in the group mr amos’ car allowance of £14400 has been consolidated into his base salary from the same date  
this results in the following salaries from 1 may 2012
 ● christopher humphrey  £375000
 ● richard amos £250000
this compared to average salary increases at 1 may 2012 for all staff in the group of around 35 over the last three years the cumulative salary increases across the 
group have been around 10 
the committee is comfortable that the approach outlined above is very much in the interests of shareholders and reﬂects the integral role played by messrs humphrey 
and amos in the company’s continued strong performance  anite annual report and accounts 2012
48
management and governance
pension contributions 
mr humphrey makes his own pension arrangements and the group makes no payment in this respect mr amos belongs to the anite stakeholder pension plan and from 
1 may 2012 the company will contribute 10 previously 5 of his base salary on the basis that he contributes a minimum of 5
other benefits and allowances 
following the recent salary reviews there are no longer any car allowances executive directors are entitled to medical insurance deathinservice permanent health 
insurance and car fuel expenses together with reasonable business expenses 
annual performance bonus 
the company operates an annual bonus plan the plan for executive directors which rewards the achievement of meeting stretching annual proﬁt growth targets and 
also individual personal objectives aligned to the group’s strategy
2012 bonus
under the terms of the plan for year ended 30 april 2012 a bonus of up to 125 of salary could be earned – 100 for proﬁt achievement and 25 for achieving personal 
objectives that were agreed at the beginning of the new ﬁnancial year 
the proﬁt bonus for 2012 was determined on a sliding scale for achieving growth in adjusted pbt where at budget level 125 of salary would be earned in order to earn 
the maximum 100 of salary pbt had to exceed by 50 that achieved in 2011
the actual performance for the year ended 30 april 2012 resulted in pbt exceeding the prior year’s result by 75 this was in excess of the maximum target set by the 
committee and therefore as a result of the excellent performance for the year the committee awarded both mr humphrey and mr amos the maximum award at 100 
of salary for successfully exceeding the stretching proﬁt targets
the committee reviewed performance against the personal objectives set for mr humphrey and mr amos for 201112 which included strategic customerfacing and 
investorbased objectives they considered that these had been achieved and therefore awarded them both the maximum of 25 of salary 
2013 bonus
for the ﬁnancial year ending 30 april 2013 the plan will again be primarily based on the achievement of stretching proﬁt growth targets at budget proﬁt level which 
reﬂects signiﬁcant growth over the past year’s achievement 25 of salary will be paid with the maximum proﬁt bonus only being awarded if the budgeted performance 
is exceeded by 20 at which level a maximum of 100 of salary would be paid in addition up to 25 will be based on the achievement of agreed personal objectives 
while the exact targets cannot be disclosed for reasons of commercial sensitivity they are tied to the strategic objectives and key performance indicators of the group 
the committee believes these targets are appropriately stretching and if delivered will represent value creation for shareholders
longterm incentive arrangements 
the company operates the following two longterm sharebased incentive plans for executive directors which are designed to align with shareholders’ interests by 
encouraging investment in anite shares 
 ● the performance share plan psp and 
 ● the share matching plan smp 
under the psp the policy for executive directors is that an annual award of shares is made of 100 of salary per annum which is the normal maximum limit under the 
plan although in exceptional circumstances an award of up to 200 of their salary may be made 
the executive directors are also able to participate in the smp under the smp since 1 may 2010 executives may invest up to 90 of base salary in any rolling threeyear 
period ie an average annual level of coinvestment of 30 per annum with the opportunity to invest a higher amount in any of the three ﬁnancial years in 2010  
mr humphrey invested 90 of salary and mr amos 60 in 2011 mr amos invested a further 30 taking his investment up to the maximum of 90 of salary 
therefore as both mr humphrey and mr amos have reached their threeyear investment limit no smp investments may be made by them in 2012 
investment shares are matched at a ratio of twoforone grossed up for tax the shares lodged against the smp scheme have to be held by the directors throughout  
the performance period 
awards granted under the psp and smp are subject to threeyear performance conditions the performance conditions for the awards made in 2011 and forthcoming 
2012 awards are set out below the conditions applying to awards made prior to 2011 are set out as footnotes to the table of psp and smp interests 
currently the policy is that half of awards made under the psp and smp are based on the group’s relative total shareholder return “tsr” performance and half are on the 
ﬁnancial performance of the wireless division over the threeyear vesting period the remuneration committee continues to believe that this provides a suitable blend of targets 
ensuring a focus on both the delivery of above market returns to shareholders and delivery of the core ﬁnancial performance applicable to the group’s strategy and plans
remuneration report continued  49
management and governance
psp and smp 2011 awards performance conditions 
 ● half of awards are based on the company’s relative tsr compared with the ftse allshare software and computer services sector the following vesting schedule  
will apply
tsr ranking proportion of shares vesting 
below median        0
median 25
between median and upper quartile on a straightline basis between 25 and 100
upper quartile or above        100
 ● half of the award will be based on the adjusted pbit performance of the wireless division and split into two parts 
1 75 ie 37 5 of the total grant will be based on the sum of the pbit of the wireless division in each of the three ﬁnancial years of the performance period 
the following vesting schedule will apply to this part of the award
total pbit of wireless division for 2012 2013 and 2014  proportion of shares vesting 
less than £54m        0
£54m 25
between £54m and £64m pro rata from 25 to 100 
£64m or above        100
2 25 ie 125 of award will be paid if in any one year of the performance period the pbit of the wireless division is in excess of £234m which was the sum  
of the record years of pbit the handset and network testing businesses that now make up the wireless division achieved in 2007 and 2009 respectively
performance to date
if 30 april 2012 were the end of the performance period the company’s tsr over the performance period to date would have placed it within the top quartile 
of the comparator group which would result in full vesting of that element of the awards
total pbit of wireless division for 2012 2013 and 2014  proportion of upper end of target range achieved so far 
pbit for 2012 – £268m upper end of target range over the full three years £64m  42 
in respect of measure 2 above the 2012 pbit result for the wireless division totalled £268m exceeding the performance target required of £234m this element  
will therefore vest at the end of the performance period 
psp 2012 awards performance conditions 
 ● half of the award will be based on the company’s relative tsr compared with the ftse techmark index which has replaced the previously used ftse software and 
computer services sector the decision to use a new comparative index was taken due to the dwindling number of constituents in the previously used index by way  
of example the number of companies in the ftse software and computer services index has declined from 23 a year ago to an estimated 15 companies at present 
assuming that recently announced agreed takeovers are completed the view taken by the committee was that such a small sample of comparators could produce 
distorted outcomes by way of comparison ftse techmark comprises 63 companies including most of those in the ftse computer software and services sector anite annual report and accounts 2012
50
management and governance
remuneration report continued
tsr ranking proportion of shares vesting 
below median        0
median 25
between median and upper quartile on a straightline basis between 25 and 100
upper quartile or above        100
 ● half of the award will be based on the sum of the pbit of the wireless division in each of the three ﬁnancial years of the performance period the following vesting 
schedule will apply to this part of the award 
total pbit of wireless division for 2013 2014 and 2015  proportion of shares vesting 
less than £105m        0
£105m 25
between £105120m pro rata from 25 to 100 
£120m or above        100
in addition the committee will also carry out a qualitative assessment of the performance of the group as a whole when deciding whether to release the shares under  
the pbit element of the psp and smp this will ensure that there has been no event outside the wireless division that would make a vesting inappropriate 
in the event that acquisitions or disposals are made during the threeyear period the committee may with appropriate ﬁnancial advice make adjustments to the 
pbit target furthermore the pbit target will be measured on a consistent basis with respect to intercompany charges and exceptional items 
finally in the event of a change in control of the company the committee can decide to determine vesting of the entire awards by reference to the tsr performance 
conditions if for example it proves impractical to measure performance against pbit targets at the relevant time
the committee will keep the structure and operation of the company’s share incentive arrangements under regular review to ensure they take due account of market
best practice and the company’s strategic and risk management objectives and do not encourage excessive operational risk taking 
share ownership guidelines
to provide a further alignment of interest with shareholders the executive directors participating in the psp and smp when exercising an award are required to retain  
in shares an amount equal in value to 50 of the aftertax gain made until they have built up a shareholding equal to 100 of base salary both executive directors  
held in excess of 100 of salary in shares at the date of this report
the use of new issue or treasury shares to satisfy awards made under the share plans is subject to a 15 dilution limit in any tenyear period the current potential 
dilution is below this level the committee aware of shareholders’ views in connection with this matter continues to take active steps to control the dilutive effect  
of the company’s share incentives and is currently working under an informal dilution limit of 10 the actual potential dilution is currently 77 2011 77 
other share plans 
recruitment award to richard amos 
in addition to the longterm incentive plans detailed above the committee awarded mr amos a oneoff restricted share award on the commencement of his 
employment the award of 150000 ordinary shares was granted on 10 december 2009 no consideration was paid by mr amos for the award the committee  
conﬁrms that the award was felt to be necessary to facilitate the recruitment of mr amos 
the award vested on 10 december 2011 and the value of the award based on the midmarket value on the date of exercise was £130035 after selling 78276 shares  
to pay for tax national insurance and dealing costs mr amos retained 71724 shares which were added to his shareholding in the company 
executive share option
as disclosed last year mr humphrey was awarded a nil cost option for 20134 shares on 30 june 2011 as part of last year’s remuneration package review this award  
vests after one year and must be exercised within ﬁve years of the grant date the committee believed that the grant of this award was more appropriate than 
increasing mr humphrey’s ﬁxed cash remuneration and as such it was granted without any performance conditions 51
management and governance
sharesave and share incentive plan
the executive directors are also eligible to participate in the company’s sharesave plan and the share incentive plan which are available to all uk employees 
management incentive plan 
in 2007 the company introduced a management incentive plan mip for key employees the mip is not available to executive directors and all awards are settled  
using market purchase shares or cash equivalent further details of the mip are contained in note 10 on page 79 
conversion of existing awards to nil cost options 
on 1 june 2011 the remuneration committee approved the conversion of existing outstanding awards structured as conditional awards under the performance share 
plan and management incentive plan to nil cost options with a tenyear exercise period it was felt that this would give the participants more ﬂexibility as to when they 
could obtain their shares under the plans there was no change to the performance conditions or other terms under which the awards were ﬁrst granted all awards issued 
since 1 january 2010 have been issued as nil cost options with performance conditions attached as explained above 
service contracts 
the committee’s policy is that all executive directors’ service contracts will be rolling contracts of one year’s duration information regarding the service contracts  
of executive directors who served during the year is summarised in the table below 
executive director      date of contract  notice period 
christopher humphrey 3 february 2003 12 months
richard amos      2 november 2009 12 months
executive directors are not permitted to hold external nonexecutive directorships or ofﬁces without the approval of the board during the year the board gave approval 
on 14 november 2011 for mr humphrey to hold the position of nonexecutive director at alterian plc due to the subsequent takeover of that company mr humphrey 
resigned from the position on 31 january 2012 mr humphrey retained gross fees of £25077 for services during his period of tenure 
the table below sets out the rights the company has to pay executive directors in lieu of notice together with the contractual compensation payable if the company 
terminates the contract other than for cause without notice 
months’ salary and contractual beneﬁts months’ salary payable in equivalent 
executive director payable within seven days of termination
1
 number of monthly instalments
2
christopher humphrey     6 6
richard amos     – 12
1 contractual beneﬁts for christopher humphrey alone include the annual performance bonus he would have received had he continued to be employed from the date of termination  
until the expiry of the notice period 
2 payments cease in effect if the executive director commences employment with a new employer during the payment period 
other than in the case of dismissal for gross misconduct the provisions of mr humphrey’s service contract will be honoured in full these legacy contractual provisions 
were agreed many years ago when standard practice for service contracts was different to current prevailing corporate governance standards 
the company adopted the above described approach to determining the compensation that is payable in the event that mr humphrey’s service contract is terminated as 
it believed at the time of agreeing his contract that it was in shareholders’ interests that the maximum obligations of each party in such circumstances were transparent 
and agreed in advance to provide certainty 
if the company terminates mr humphrey’s employment without cause the committee will be asked to exercise any discretion it has under the terms of any share 
incentive plans in his favour if the remuneration committee determines not to follow this recommendation he shall be entitled to damages anite annual report and accounts 2012
52
management and governance
the company is aware of the provisions now in place for the uk corporate governance code which states that compensation payments should reﬂect a departing 
director’s obligation to mitigate his loss however the committee considers that the cost of amending mr humphrey’s contract in respect of the above including the 
cost of any compensation he might be entitled to claim could outweigh the existing termination costs under his contract and therefore such a change is not the most 
economical solution for shareholders 
these terms do not apply to mr amos the provisions in his contract reﬂect the committee’s standard ongoing policy for new executive director appointments which are 
fully compliant with the provisions of the uk corporate governance code these are that in the event of termination without cause he would be entitled to 12 months’ 
salary only paid in monthly instalments and with mitigation there are no obligations on the remuneration committee to exercise its discretion in respect of the terms  
of the share incentive plans 
nonexecutive directors 
mr brendish has a threeyear term of ofﬁce with six months’ notice of termination required by either party mr hurstbrown mr clifford and mr taylor each have  
a threeyear term of ofﬁce with no notice period or provision for compensation for loss of ofﬁce 
further details of the nonexecutive directors’ terms of employment can be found on page 43 
the board reviews the independent nonexecutive directors’ fees annually in the course of which it compares fees paid to nonexecutive directors of comparable 
companies fees recognise the additional responsibilities undertaken by the nonexecutive directors in chairing the board and its committees in addition to their  
fees the nonexecutive directors are entitled to reimbursement of reasonable business expenses 
the chairman’s fees are set by the remuneration committee he is not present at any discussion of his own remuneration the fees for nonexecutives as reported  
in the 2011 remuneration report were increased on 1 may 2011 there was no increase in nonexecutive directors fees on 1 may 2012 
200
150
100
50
0
30 april 2012 30 april 2011 30 april 2010 30 april 2009 30 april 2008 30 april 2007
value £
ftse allshare software and computer services index ftse techmark allshare index source thomson reuters anite group
total shareholder return
this graph shows the value by 30 april 2012 of £100 invested in anite plc on 30 april 2007 compared with the value of £100 invested in the ftse allshare software and computer services 
index and the ftse techmark allshare index the other points plotted are the values at intervening ﬁnancial year ends 
remuneration report continued  53
management and governance
audited information 
directors’ emoluments for year ended 30 april 2012
car subtotal pension  beneﬁts in total total 
salary allowance salary contributions bonus kind 2012 2011
executive directors        
christopher humphrey 334000 – 334000 – 417500 11881 763381 730169
richard amos
1
210000 14400 224400 10500 262500 4563 501963 443703
544000 14400 558400 10500 680000 16444 1265344 1173872
nonexecutive directors        
clay brendish 139000 – 139000 – – – 139000 135000
david hurstbrown 47000 – 47000 – – – 47000 42000
nigel clifford 40000 – 40000 – – – 40000 37000
paul taylor 45000 – 45000 – – – 45000 42000
815000 14400 829400 10500 680000 16444 1536344 1429872
1 mr amos has elected for £12500 of his bonus to be paid to the company pension plan 2011 £30000
executive directors’ share options
 options held options options held first
 at 1 may issued in at 30 april exercise date of exercisable 
2011 year 2012 price grant date expiry date
christopher humphrey       
long term incentive plan  571226 – 571226 345p 15072003 15072006 14072013
 149912 – 149912 565p 23012004 23012007 22012014
 187500 – 187500 485p 16082004 16082007 15082014
executive options – total 908638 – 908638
saye  41466 – 41466 225p 31072009 01092014 01032015
saye – 10439 10439 591p 01082011 01092016 01032017
total options 950104 10439 960543
richard amos       
saye – 15270 15270 591p 01082011 01092016 01032017
total options – 15270 15270
the closing price of an ordinary share of anite plc as at 30 april 2012 was 124p 2011 6425p the range of closing prices during the year ended 30 april 2012 was  
128p high 2011 6925p and 5675p low 2011 3100p anite annual report and accounts 2012
54
management and governance
executive directors’ performance share plan share matching plan and other share awards 
for the reasons explained above on the 1 june 2011 the remuneration committee resolved that all existing conditional awards under the management incentive plan 
performance share plan and share matching plan be converted to nil cost options subject to the rules of the respective plans the 2010 and 2011 psp and smp awards 
were both issued as nil cost options 
awards at options options options vestingﬁrst 
1 may awarded exercised in lapsed at 30 april share price  exercisable
2011 during year year during year 2012 at award date of grant date expiry date
christopher humphrey
performance share plan
3
 683784 – – 455742 228042 370p 18082008 18082011 17082018
performance share plan
3
 1148000 – – 843206 304794 270p 23122008 23122011 22122018
performance share plan
3
 830350 – – – 830350 280p 10072009 10072012 9072019
performance share plan
4
 861111 – – – 861111 360p 7072010 7072013 6072020
performance share plan – 448322 – – 448322 7450p 30062011 30062014 29062021
share matching plan
4
 3207818 – – – 3207818 3550p 7072010 7072013 6072020
share option award
2
– 20134 – – 20134 7450p 30062011 30062012 29062016
total 6731063 468456 – 1298948 5900571    
richard amos
performance share plan
4
 513889 – – – 513889 360p 7072010 7072013 6072020
performance share plan – 281879 – – 281879 7450p 30062011 30062014 29062021
share matching plan
4
 1276229 – – – 1276229 3550p 7072010 7072013 6072020
share matching plan – 352349 – – 352349 7450p 30062011 30062014 29062021
restricted share award
1
 150000 – 150000 – – 3225p 10122009 10122011 10122011
total 1940118 634228 150000 – 2424346    
steve rowley former director    
performance share plan
3
 351352 – 43339 308013 – 370p 18082008 18082011 17022012
total 351352 – 43339 308013 –    
1 these conditional shares were not converted to nil cost options at 1 june 2011
2 this award made in 2011 was for nil cost options to the value of £15000
3 psp awards 2008 and 2009 performance conditions
 ahalf of each award is subject to a total shareholder return tsr target this is measured relative to the ftse allshare software and computer services sector with 25 of this portion  
of awards vesting at the median and full vesting at the upper quartile straightline vesting applies between these points 
 bhalf of each award is assessed by reference to anite’s earnings per share eps performance the company’s eps growth must match or exceed the uk government’s retail price index rpi 
plus 4 compound per annum over the performance period at which point 25 vests rising to full vesting for growth of rpi  12 pa or more 
the vesting position of the awards made in 2008 and 2009 is as follows
 of award vesting
grant date performance period eps element tsr element total
august 2008 1 may 2008 to 30 april 2011 0 3335 3335
december 2008 1 may 2008 to 30 april 2011 0 2655 2655
july 2009 1 may 2009 to 30 april 2012 50 50 100
 the july 2009 award will vest on 10 july 2012 assuming the other conditions of the scheme continue to be met
4 psp and smp awards 2010 performance conditions 
 ahalf of the award is based on the company’s relative tsr compared with the ftse allshare software and computer services sector with 25 of this portion of awards vesting at the median 
and full vesting at the upper quartile straightline vesting applies between these points
 bhalf of the award is based on the adjusted proﬁt before interest and tax pbit performance of the wireless division and split into two parts 
i 75 ie 37 5 of the total grant will be based on the sum of the pbit of the wireless division in each of the three ﬁnancial years of the performance period the following vesting schedule 
will apply to this part of the award 
remuneration report continued  55
management and governance
total pbit of wireless division for 2011 2012 and 2013  proportion of shares vesting 
less than £425m 0
£425m 25
between £425m and £50m pro rata from 25 to 100 
£50m or above 100
ii 25 ie 125 of award will be paid if in any one year of the performance period the pbit of the wireless division is in excess of £234m which was the sum of the record years of  
pbit the handset and network testing businesses achieved in 2007 and 2009 respectively 
note that the two proﬁt performance measures above will be assessed independently of each other in addition these are both independent of the tsr target which will continue to apply  
to half of all awards performance to date under the 2010 awards indicates that tsr performance to 30 april 2012 would have placed the company in the top quartile if that were the end  
of the period 
performance to date under the element related to the aggregate pbit of the wireless division is shown below 
total pbit of wireless division for 2011 2012 and 2013 proportion of target achieved to date 
proﬁt for 2011  2012 – £432m target £50m 86
in respect of the second performance measure above the 2012 results for the wireless division totalled £268m exceeding the performance target required of £234m this element will therefore 
vest at the end of the performance period subject to the service condition being met
former director 
when steve rowley resigned as a director with effect from 31 december 2008 it was agreed that his performance share plan awards granted in 2008 should not lapse 
but should be capable of vesting on the agreed vesting date subject to the extent to which the performance conditions are satisﬁed at that time and a pro rata reduction 
on the size of the original award up to the date of resignation following the announcement of the 2011 results the tsr element of this award partially vested and 43339 
options were released to mr rowley with remaining options lapsing the value of the options vesting at the date of exercise was £25911 being the gross proceeds before 
tax and national insurance deductions from the sale of the shares in the market
directors’ interests in shares 
the interests of the directors who held ofﬁce at 30 april 2012 and their immediate family in the ordinary share capital of the company were as shown in the table 
below all interests are beneﬁcial 
number of shares held number of shares held 
as at 30 april 2012 as at 1 may 2011
clay brendish      291222 291222
christopher humphrey      1262249 1233021
richard amos      481424 343349
david hurstbrown      180000 180000
nigel clifford      30000 30000
paul taylor – –
in the period from 1 may 2012 to 30 june 2012 being the latest practicable date prior to the publication of this document the only changes in the interests of  
the directors related to the monthly investments of the executive directors in the share incentive plan sip during this period mr humphrey acquired 420 and  
mr amos 420 ordinary shares under the sip 
this report has been approved by the board and has been signed on its behalf by 
david hurstbrown 
chairman of the remuneration committee 
2 july 2012 anite annual report and accounts 2012
56
management and governance
report of the audit committee
the audit committee is a committee of the board which comprises two independent nonexecutive directors and the chairman who was considered independent  
on his appointment to the board on 4 october 2005 
during the year the members of the committee were paul taylor chairman clay brendish and david hurstbrown the board considers that paul taylor who  
is a fellow of the association of chartered certiﬁed accountants has recent and relevant ﬁnancial experience
details of the relevant experience of the other committee members are detailed on pages 34 and 35 
the company provides an induction programme for new audit committee members 
having reviewed the composition of the committee during the year the board is satisﬁed the committee has the skills and resources to fulﬁl effectively its roles  
and responsibilities including those in connection with risk and internal controls members are offered relevant training where necessary to ensure such skills are  
kept current and at appropriate levels
role responsibilities and terms of reference 
the committee operates within agreed terms of reference which can be found on the company’s website 
the committee’s main responsibilities include 
 ● making recommendations on the appointment and remuneration of the company’s external auditors assessing their performance and independence  
monitoring the provision of nonaudit services and any potential impact on independence 
 ● reviewing the annual and interim ﬁnancial statements and results announcements of the company including reviewing the company’s accounting policies 
 ● monitoring and reviewing the company’s systems of internal control and risk management including the “whistleblowing” procedures and 
 ● reviewing the nature and scope of the work to be performed by the external and internal auditors the results of their work and the response of management 
meetings
the committee invites others including the external auditors the group finance director and the chief executive to attend its meetings as appropriate the group 
financial controller is the secretary to the committee 
the committee meets with the external auditors without any executive directors present at least twice annually and more often if this is considered appropriate 
work during the year 
during the period under review the committee met four times the meetings were held to review the results of the external audit for the previous ﬁnancial year  
discuss and agree scope of internal and external audits and reviews for the year details of attendance at each formal meeting are shown in the table in the corporate 
governance report on page 42 
the committee discharged its obligations in respect of the ﬁnancial year as follows 
external audit 
the committee has considered the independence and effectiveness of deloitte llp deloitte llp have been the group’s auditors since september 2002 the audit 
committee considered that the relationship with the auditors is working well and remains satisﬁed with their independence and effectiveness the external auditors  
are required to rotate the audit partner responsible for the group and subsidiary audits every ﬁve years and the current lead audit partner who was appointed in  
october 2008 has completed four year end audits 
nonaudit fee work conducted by deloitte llp over the past year for tax services corporate ﬁnance advice and halfyear review assurance services amounted to  
35 of the audit fee work the committee considers that the level and nature of nonaudit work does not compromise the independence of the external auditors 
accordingly it has not considered it necessary in the current year to run a tender process for the audit work there are no contractual obligations restricting the  
group’s choice of external auditors and the committee also keeps under review the value for money of the audit 
during the period the committee reviewed and approved the scope of the audit as proposed by deloitte llp 
anite annual report and accounts 2012
management and governance  57
management and governance
financial reporting 
the committee reviewed the interim and annual ﬁnancial statements the committee received and considered reports from the external auditors on accounting 
and judgemental issues which required its attention the reports were based on a full audit annual and a limited scope review interim 
during the year the committee reviewed speciﬁc judgements in a number of areas including revenue recognition on large contracts assumptions supporting intangible 
asset impairment reviews and obsolescence provisions for inventory levels recognising the increasing importance of hardware within the wireless division business model
internal controls and risk management 
the board retains the responsibility for risk assessment and monitoring as explained in the corporate governance report on page 44 the audit committee is delegated 
the responsibility for assessing the effectiveness of the group’s internal control regime it undertook this during the year by reviewing the principal risks facing the group 
and its trading operations and the necessary mitigation and monitoring activities and by receiving reports from the internal audit function project management director 
group financial controller it director and from the external auditors
internal audit 
the committee agreed in july 2006 to create an internal review function headed by a member of the group ﬁnance team who under the control of the audit 
committee carries out a plan of detailed reviews throughout the operating companies where additional resource is required this is sourced either from an external 
professional ﬁrm or by selecting divisional staff who carry out peer reviews in divisions other than their own this internal review function does not represent an 
independent internal audit function as deﬁned by professional internal audit standards but has been a signiﬁcant enhancement in the group’s internal control framework 
the committee considers that the current internal review function is suitable given the size and complexity of the business 
the committee agreed the scope of the work at the start of the year and requested two reviews be conducted during the year these were reviews across the group by  
the group ﬁnance team of inventory management and contracting processes external legal assistance was used in the latter review both reviews concluded that the 
overall controls in the areas tested were appropriate and effective and recommended minor improvements which are expected to be implemented over the next year 
paul taylor 
chairman of the audit committee
2 july 2012 58
anite annual report and accounts 2012
financial statements
statement of directors’ responsibilities
directors’ responsibilities statement
the directors are responsible for preparing the annual report and the ﬁnancial statements in accordance with applicable law and regulations
company law requires the directors to prepare ﬁnancial statements for each ﬁnancial year under that law the directors are required to prepare the group ﬁnancial 
statements in accordance with international financial reporting standards ifrss as adopted by the european union and article 4 of the ias regulation and have also 
chosen to prepare the parent company ﬁnancial statements under ifrss as adopted by the eu under company law the directors must not approve the accounts unless 
they are satisﬁed that they give a true and fair view of the state of affairs of the company and of the proﬁt or loss of the company for that period in preparing these 
ﬁnancial statements international accounting standard 1 requires that directors
 ● properly select and apply accounting policies
 ● present information including accounting policies in a manner that provides relevant reliable comparable and understandable information 
 ● provide additional disclosures when compliance with the speciﬁc requirements in ifrss are insufﬁcient to enable users to understand the impact of particular 
transactions other events and conditions on the entity’s ﬁnancial position and ﬁnancial performance and
 ● make an assessment of the company’s ability to continue as a going concern
the directors are responsible for keeping adequate accounting records that are sufﬁcient to show and explain the company’s transactions and disclose with reasonable 
accuracy at any time the ﬁnancial position of the company and enable them to ensure that the ﬁnancial statements comply with the companies act 2006 they are also 
responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
the directors are responsible for the maintenance and integrity of the corporate and ﬁnancial information included on the company’s website legislation in the united 
kingdom governing the preparation and dissemination of ﬁnancial statements may differ from legislation in other jurisdictions
responsibility statement 
we conﬁrm that to the best of our knowledge
 ● the ﬁnancial statements prepared in accordance with international financial reporting standards give a true and fair view of the assets liabilities ﬁnancial position 
and proﬁt or loss of the company and the undertakings included in the consolidation taken as a whole and
 ● the management report which is incorporated into the directors’ report includes a fair review of the development and performance of the business and the position 
of the company and the undertakings included in the consolidation taken as a whole together with a description of the principal risks and uncertainties that they face
by order of the board
christopher humphrey   richard amos
chief executive    group finance director
2 july 2012     2 july 2012  59
anite annual report and accounts 2012
financial statements
financial statements
independent auditors’ report to the members of anite plc
we have audited the ﬁnancial statements of anite plc for the year ended 30 april 2012 which comprises the group income statement the group statement of 
comprehensive income the group and parent company balance sheet the group and parent cash ﬂow statement the group and parent company statements of changes 
in equity and the related notes 1 to 32 and notes 1 to 16 respectively 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 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 the 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 nonﬁnancial information in the annual 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 30 april 2012 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 and as regards the group ﬁnancial statements  
article 4 of the ias regulation
opinion on other matters prescribed by the companies act 2006
in our opinion
 ● the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the companies act 2006 and
 ● 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 and the part of the directors’ remuneration report to be audited 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
under the listing rules we are required to review
 ● the directors’ statement contained within the report of the directors on page 38 in relation to going concern 
 ● the part of the corporate governance statement relating to the company’s compliance with the nine provisions of the uk corporate governance code speciﬁed 
for our review and
 ● certain elements of the report to shareholders by the board on directors’ remuneration
peter o’donoghue senior statutory auditor
for and on behalf of deloitte llp 
chartered accountants and statutory auditor
london uk
2 july 2012 60
anite annual report and accounts 2012
financial statements
consolidated income statement
consolidated statement of comprehensive income
2012 2011
note £000 £000
continuing operations
revenue 31 122546 93694
cost of sales 50105 38184
gross profit 72441 55510
distribution costs  12463 11358
research and development 17096 12838
administrative expenses  20383 17354
operating expenses 35 49942 41550
operating proﬁt before sharebased payments amortisation  
of acquired intangible assets and restructuring costs  32 28772 17660
sharebased payments 10 2889 126
amortisation of acquired intangible assets 14 3340 3582
restructuring costs 4 44 244
operating profit 32 22499 13960
other gains and losses 5 487 19
finance income 7 353 484
finance charges 7 1152 2242
profit from continuing operations before tax 22187 12221
tax expense 11 5974 3270
profit from continuing operations 16213 8951
proﬁt from discontinued operations 6 2253 484
profit for the year 8 18466 9435
proﬁt attributable to equity holders of the parent  18466 9435
continuing and discontinued operations
earnings per share  – basic 12 65p 33p
– diluted 60p 31p
continuing operations
earnings per share  – basic 12 57p 31p
– diluted 53p 29p
2012 2011
note £000 £000
retained profit for the year 18466 9435
exchange differences arising on translation of foreign operations 6745 1941
cash ﬂow hedges 237 404
recycling of fair value loss on cash ﬂow hedges to proﬁt or loss 7 42 133
tax charge taken directly to other comprehensive income 11 193 559
total comprehensive income 11807 11354
the directors have reconsidered the requirements of ias 1 “presentation of financial statements” with respect to the presentation of certain items relating to share 
transactions which were previously reported in other comprehensive income in light of this they have represented those items in the statement of changes in equity  
on the basis that it is most appropriate to regard them as transactions with equity holders 61
anite annual report and accounts 2012
financial statements
financial statements
consolidated statement of changes in equity
issued share capital
share premium own merger redemption other retained 
capital account shares reserve reserve reserves earnings total 
£000 £000 £000 £000 £000 £000 £000 £000
balance at 1 may 2010 33652 25500 3895 722 2741 6748 25978 77950
changes in equity for the  
year to 30 april 2011
total comprehensive income  
for the year ––––– 1919 9435 11354
issue of share capital 28 60––––– 88
purchase of own shares into 
employee beneﬁt trust – – 5351 –––– 5351
gain on sale of shares from 
employee beneﬁt trust – – 17––– 12 5
recognition of equitysettled 
sharebased payments after tax – ––––– 480 480
dividend paid –––––– 2826 2826
balance at 30 april 2011 33680 25560 9229 722 2741 4829 33055 81700
changes in equity for the  
year to 30 april 2012
total comprehensive income  
for the year ––––– 6659 18466 11807
issue of share capital 22 68––––– 90
purchase of own shares into 
employee beneﬁt trust – – 1628 –––– 1628
gain on sale of shares from 
employee beneﬁt trust – – 875––– 871 4
recognition of equitysettled 
sharebased payments after tax – ––––– 3299 3299
dividend paid –––––– 3171 3171
balance at 30 april 2012 33702 25628 9982 722 2741 11488 50778 92101 62
anite annual report and accounts 2012
financial statements
consolidated balance sheet
2012 2011
note £000 £000
noncurrent assets
goodwill 13 54280 58690
other intangible assets 14 15892 19254
property plant and equipment 15 10967 9226
deferred tax assets 25 4489 2491
 85628 89661
current assets
inventories 17 10195 4722
trade and other receivables 18 32856 31939
derivative ﬁnancial assets 23 92 486
current tax assets 157 224
cash and cash equivalents 19 16947 37667
 60247 75038
total assets 145875 164699
current liabilities
trade and other payables 20 37741 30538
bank borrowings 21 – 9995
current tax payable 7666 8257
derivative ﬁnancial liabilities 23 – 22394
provisions 26 4899 4794
 50306 75978
noncurrent liabilities
deferred tax liabilities 25 2527 3561
provisions 26 941 3460
 3468 7021
total liabilities 53774 82999
net assets 92101 81700
equity
issued share capital 27 33702 33680
share premium account  25628 25560
own shares 27d 9982 9229
merger reserve 722 722
capital redemption reserve  2741 2741
other reserves 28 11488 4829
retained earnings  50778 33055
total equity 92101 81700
the ﬁnancial statements of anite plc company no 01798114 were approved by the board on 2 july 2012 and signed on its behalf by
christopher humphrey
chief executive
richard amos
group finance director  63
anite annual report and accounts 2012
financial statements
financial statements
consolidated cash flow statement
2012 2011
note £000 £000
profit for the year
continuing operations 16213 8951
discontinued operations 2253 484
 18466 9435
adjustments for
tax charge – continuing and discontinued 11 3721 2786
other gains and losses 5 487 19
net ﬁnance charges 7 799 1758
depreciation of property plant and equipment 15 3280 2722
amortisation of intangible assets 14 2154 1796
amortisation of acquired intangible assets 14 3340 3582
proﬁt on disposal of property plant and equipment 74 –
sharebased payments chargecredit 10 2889 126
decrease in provisions  1907 1458
operating cash flows before movements in working capital 32181 20476
increase in inventories  5473 115
increase in receivables  894 7260
increase in payables  5160 4071
increase in working capital  1207 3304
cash generated from operations 30974 17172
interest received 509 190
interest paid  1381 1899
income taxes paid 5413 2012
net cash generated from operating activities 24689 13451
cash flow from investing activities
settlement of crosscurrency swap  21591 –
purchase of product line and deferred consideration paid  622 1263
purchase of property plant and equipment   4952 2836
proceeds from sale of property plant and equipment 76 –
purchase of software licences 14 697 631
expenditure on capitalised product development 14 2629 2657
net cash used in investing activities 30415 7387
cash flow from financing activities
issue of ordinary share capital 90 88
purchase of own shares into employee beneﬁt trust  1628 5351
proceeds from sale of own shares from employee beneﬁt trust 4 5
dividend paid to company’s shareholders 29 3171 2826
repayment of bank loans  10000 5000
net cash used in financing activities 14705 13084
net decrease in cash and cash equivalents 22 20431 7020
effect of exchange rate changes 289 116
cash and cash equivalents at 1 may  37667 44803
cash and cash equivalents at 30 april 19 16947 37667 64
anite annual report and accounts 2012
financial statements
1 corporate information
anite plc “the company” is a public limited company incorporated and domiciled in england and wales whose ordinary shares are publicly traded on the london 
stock exchange the consolidated ﬁnancial statements for the year ended 30 april 2012 comprise the company and its subsidiaries together referred to as the “group” 
the principal activities of the company’s subsidiaries are described in note 16
the group’s consolidated ﬁnancial statements were authorised for issue by the directors on 2 july 2012 
2 summary of significant accounting policies
a basis of preparation
these consolidated ﬁnancial statements have been prepared under the historical cost convention as modiﬁed by the revaluation of certain ﬁnancial instruments 
the directors continue to adopt the going concern basis of accounting as explained on page 38 in the report of the directors
the group has prepared its ﬁnancial statements in accordance with international financial reporting standards ifrs the ﬁnancial statements have also been prepared 
in accordance with ifrss as adopted by the european union and international financial reporting interpretations committee ifric interpretations and those parts of 
the companies act 2006 applicable to companies reporting under ifrs therefore the group ﬁnancial statements comply with article 4 of eu ias regulations
the signiﬁcant accounting policies set out below have been applied consistently to all periods presented in these consolidated ﬁnancial statements the following new 
standards amendments to standards and interpretations are mandatory for the ﬁrst time in the current period and have been adopted by the group with no signiﬁcant 
impact on its ﬁnancial performance or position
ias 24 “related party disclosures” revising the deﬁnition of related parties
ifric 19 “extinguishing financial liabilities with equity instruments” 
improvements to ifrss 2010
b basis of consolidation
the group ﬁnancial statements consolidate the ﬁnancial statements of the company and entities controlled by the company all of which are made up to 30 april each 
year control is achieved where the company has the power directly or indirectly to govern the ﬁnancial and operating policies of an entity so as to obtain beneﬁts from 
its activities the ﬁnancial statements of subsidiaries are prepared for the same reporting year as the company using consistent accounting policies
the results of companies acquired are consolidated from the date on which control passes to the group and cease to be consolidated from the date on which control is 
transferred from the group all intragroup transactions balances income and expenses are eliminated on consolidation
c business combinations
the acquisition of subsidiaries is accounted for under the acquisition method the cost of an acquisition is measured at the aggregate of the fair value of the assets given 
equity instruments issued and liabilities incurred or assumed at the date of exchange transaction costs are expensed as incurred
where an acquisition includes a contingent consideration arrangement this is measured at its fair value on the date of acquisition subsequent changes to the fair value 
that are made within the measurement period are adjusted against the cost of acquisition
d goodwill
goodwill arising on the acquisition of a subsidiary represents the excess of the cost of acquisition over the group’s interest in the fair value of the identiﬁable assets 
and liabilities of the subsidiary at the date of acquisition 
goodwill is recognised as an asset and reviewed for impairment at least annually see note 2g any impairment is recognised immediately in the income statement 
and is not subsequently reversed
on disposal or closure of a previously acquired business the amount of goodwill attributable is included in determining the proﬁt or loss on disposal or closure
notes to the accounts  65
financial statements
2 summary of significant accounting policies continued
e intangible assets
i software licences
software licences are initially measured at cost cost includes the purchase price of the assets and the directly attributable costs of bringing the asset into its intended 
use after initial recognition the intangible asset is carried at cost less accumulated amortisation less any accumulated impairment losses amortisation is charged evenly 
over the assets’ estimated useful life which is typically three years
ii separately identifiable intangible assets arising on business combinations
intangible assets acquired in a business combination are recognised at their fair value on the date of acquisition following initial recognition the intangible asset is carried 
at cost less accumulated amortisation less any accumulated impairment losses the useful lives of assets such as customer lists and relationships technology and rd 
are assessed over the period that beneﬁts are expected to accrue to the group the useful economic lives are reviewed regularly to ensure the recoverability of these 
intangible assets 
the amortisation period ranges from ﬁve to ten years and is based on equal annual instalments over the assets’ estimated useful life amortisation of acquired intangible 
assets is charged as a separate line item on the income statement
iii research and development expenditure
expenditure on research activities as deﬁned in ifrs is recognised in the income statement as an expense as incurred
expenditure on development activities is capitalised only when its future recoverability can be reasonably assured and both its technical feasibility and commercial 
viability can be demonstrated the capitalised expenditure represents costs directly attributable to the development of the asset from the point at which the above 
criteria are met up to the point at which the product is in use if the qualifying conditions are not met such development expenditure is recognised as an expense  
in the period in which it is incurred
the intangible asset is carried at cost less accumulated amortisation less any accumulated impairment losses amortisation is charged on a straightline basis over 
the useful life of the related asset which management estimate to be no more than ﬁve years
f property plant and equipment and depreciation
property plant and equipment are stated at cost net of accumulated depreciation and any recognised impairment loss
depreciation is provided on all tangible ﬁxed assets and freehold properties at rates calculated to write off the cost over the estimated useful lives on a straightline basis 
as follows
freehold properties 2 per annum of cost excluding land
short leasehold properties length of lease
ofﬁce equipment and ﬁxtures and ﬁttings 10 to 50 per annum of cost
vehicles 25 per annum of cost
computer equipment 33 per annum of cost
costs relating to short leasehold properties ofﬁce equipment and ﬁxtures and ﬁttings and vehicles are included in the “plant ﬁxtures equipment and motor vehicles” 
category see note 15
the gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and 
is recognised in the income statement 66
anite annual report and accounts 2012
financial statements
notes to the accounts continued
2 summary of significant accounting policies continued
g impairment of assets
goodwill is tested at least annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired tangible and intangible 
assets with ﬁnite useful lives are tested for impairment at each reporting date where there is an indication that an asset may be impaired 
when an impairment test is performed the recoverable amount is assessed by reference to the higher of the net present value of the expected cash ﬂows value in use 
of the relevant cashgenerating unit “cgu” or asset and the fair value less cost to sell in assessing value in use the estimated future cash ﬂows are discounted to their 
present value using a pretax discount rate that reﬂects current market assessments of the time value of money and the risks speciﬁc to the asset in the event that an 
asset does not generate cash ﬂows that are independent from other assets the group estimates the recoverable amount of the cgu to which the asset belongs
where the carrying amount of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount impairment 
losses are recognised in the income statement in those expense categories consistent with the function of the impaired asset
h other investments
other investments are stated at cost less provision for any impairment
i inventories and work in progress
inventories are stated at the lower of cost and net realisable value after making allowance for slowmoving and obsolete items 
cost represents the expenditure incurred in acquiring the inventories and bringing them to their present location and condition the cost is calculated on a fifo basis
net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing selling and distribution
j financial instruments
financial assets and ﬁnancial liabilities are recognised on the group’s balance sheet when the group becomes a party to the contractual provisions of the instrument
i trade and other receivables
trade and other receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts
ii cash and cash equivalents
for the purpose of preparation of the statement of cash ﬂows and the balance sheet cash and cash equivalents include cash at bank and in hand and shortterm deposits 
with an original maturity period of three months or less bank overdrafts that are an integral part of a subsidiary’s cash management are included in cash and cash 
equivalents where they have a legal right of setoff
iii financial liabilities and equity
debt and equity instruments are classiﬁed as either ﬁnancial liabilities or as equity in accordance with the substance of the contractual arrangement
iv equity instruments
an equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities equity instruments issued by the 
group are recognised at the proceeds received net of direct issue costs
v bank borrowings
interestbearing bank loans and overdrafts are initially recorded at the proceeds received net of direct issue costs subsequent measurement is made at amortised cost 
using the effective interest method with interest expense recognised on an effective yield basis the effective interest rate is the rate that exactly discounts the estimated 
future cash payments through the expected life of the ﬁnancial liability to the net carrying amount on initial recognition
vi trade payables
trade payables are not interest bearing and are stated at their nominal value  67
financial statements
2 summary of significant accounting policies continued
k derivative financial instruments and hedge accounting
the group uses derivative ﬁnancial instruments to hedge its risks associated with foreign currency and interest rate ﬂuctuations
the use of derivative ﬁnancial instruments is governed by the group’s policies approved by the board of directors which provide written principles on the use of ﬁnancial 
derivatives derivative ﬁnancial instruments if used by the group are for hedging purposes to alter the risk proﬁle of an existing underlying exposure to the group
cash flow hedge
the effective portion of changes in the fair value of derivative ﬁnancial instruments that are designated and qualify as cash ﬂow hedges is recognised directly in other 
comprehensive income the gain or loss relating to the ineffective portion is recognised immediately in the income statement under the heading of “other gains 
and losses”
amounts previously recognised in other comprehensive income and accumulated in equity are reclassiﬁed to proﬁt or loss in the period when the hedged item is 
recognised in proﬁt or loss 
hedge accounting is discontinued when the hedging instrument no longer qualiﬁes for hedge accounting any gain or loss recognised in other comprehensive income 
at that time is accumulated in equity and is recognised when the forecast transaction is ultimately recognised in proﬁt or loss when a forecast transaction is no longer 
expected to occur the gain or loss accumulated in equity is recognised immediately in proﬁt or loss
fair value hedge
for an effective hedge of an exposure to changes in fair value the gain or loss attributable to the change in fair value of the hedged item as a result of the underlying 
risk being hedged is recognised in the income statement any gain or loss on the hedging instrument that is similarly attributable to the change in fair value of the hedged 
risk is recognised in the income statement under the same line item
hedges of net investments in foreign operations
hedges of net investments in foreign operations are accounted for in a similar way to cash ﬂow hedges any gain or loss on the hedging instrument relating to the 
effective portion of the hedge is recognised in other reserves the gain or loss relating to the ineffective portion is recognised immediately in the income statement  
under the heading of “other gains and losses”
embedded derivatives
derivatives embedded in other ﬁnancial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related 
to those of host contracts
l provisions
provisions are recognised when the group has a present legal or constructive obligation as a result of past events when it is probable that an outﬂow of economic 
beneﬁts will be required to settle the obligation and the amount has been reliably estimated
if the effect of the time value of money is material provisions are discounted using a current pretax rate that reﬂects where appropriate the risks speciﬁc to the liability 
where discounting is used the increase in the provision due to the passage of time is recognised within ﬁnance charges
provisions are not recognised for future operating losses
m leasing
the group does not hold ﬁnance leases all leasing transactions are classiﬁed as operating leases
rentals payable under operating leases are charged to income on a straightline basis over the term of the relevant lease
beneﬁts received and receivable as an incentive to enter into an operating lease are also spread on a straightline basis over the lease term
rental income from operating leases is recognised on a straightline basis over the term of the relevant lease 68
anite annual report and accounts 2012
financial statements
notes to the accounts continued
2 summary of significant accounting policies continued
n foreign currency
the company’s functional currency and the currency in which these consolidated ﬁnancial statements are presented is pounds sterling 
i foreign currency transactions
transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction monetary assets and liabilities denominated in foreign 
currencies at the balance sheet date are translated to sterling at the foreign exchange rate ruling at that date foreign exchange differences arising on translation are 
recognised in the income statement nonmonetary assets and liabilities that are measured in terms of historical cost in a foreign currency are not retranslated
ii financial statements of foreign operations
the assets and liabilities of foreign operations are translated to sterling at foreign exchange rates ruling at the balance sheet date the revenues and expenses of foreign 
operations are translated to sterling at rates approximating the foreign exchange rates ruling at the dates of the transactions foreign exchange differences arising on 
retranslation are recognised directly in other reserves exchange gains and losses arising on the translation of the group’s net investment in foreign entities are also 
recognised in other reserves on disposal of a foreign entity the cumulative translation differences are recycled to the income statement and recognised as part of the 
gain or loss on disposal
o revenue recognition
revenue is measured at the fair value of consideration received or receivable from customers for software and hardware products and related services supplied by the group 
net of discounts vat and other sales related taxes
the group earns revenue from the following main sources
1 sales of software licences and software products with associated hardware
2 sales of software development effort implementation and systems integration services these are sold either on a “time and materials” or “ﬁxed price” basis
3 sales of maintenance and support of previously sold software and hardware and
4 sales of managed services such as application hosting whereby the group contracts to provide an agreed service for a ﬁxed period of time
whenever possible the individual performance obligations of the contract are unbundled so that the transaction price is allocated to the separate performance 
obligations of the contract based on their standalone selling prices revenue is recognised when there is persuasive evidence that an arrangement exists the company’s 
fee is ﬁxed or determinable deliverycontrol is passed to the customer to satisfy the performance obligations and it is probable that the resulting future economic 
beneﬁts will ﬂow to the company
revenue from the sale of software relates mainly to sales of perpetual licences which provide the customer with the right to use the group’s products for an unlimited 
period revenue from the sale of perpetual licences and software products including associated hardware and other thirdparty product is normally recognised on 
delivery unless there are any acceptance criteria speciﬁed in the contract then part or all of the revenue depending on the scale of the acceptance conditions is deferred 
until all the acceptance conditions have been satisﬁed
revenue from any ﬁxed term software licences or software rental is recognised evenly over the period of the licence  69
financial statements
2 summary of significant accounting policies continued
o revenue recognition continued
for other software revenues
 ● revenue from the sale of test case software in our handset testing business where validation by the various standards bodies may be required is recognised on 
delivery with an amount retained until ﬁnal validation is received
 ● revenue from software development training implementation and any other services contracted on a time and materials basis is recognised in line with when the 
work is performed at the rate contracted
 ● software development done on a ﬁxed price basis is recognised on a percentage completion basis over the life of the contract provision is made for any expected 
losses on contracts yet to be completed 
where associated services eg signiﬁcant software development are essential to the functionality of the software then the software licence and services are bundled 
and recognised on a percentage completion basis based on project milestones over the period of the contract
maintenance and support revenue is generally recognised on a straightline basis over the life of the related agreement taking into account any free maintenance periods
managed services revenue is recognised over the life of the contract 
all ﬁnance income is recognised in the income statement in the period in which it arises
p taxation
the tax expense represents the sum of tax currently payable and deferred tax
the tax currently payable is based on taxable proﬁt for the year taxable proﬁt differs from net proﬁt as reported in the income statement because it excludes items of 
income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible the liability for current tax is calculated 
using tax rates that have been enacted or substantively enacted by the balance sheet date
deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the ﬁnancial statements and the 
corresponding tax bases used in the computation of taxable proﬁt and is accounted for using the balance sheet liability method deferred tax liabilities are generally 
recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable proﬁts will be available against 
which deductible temporary differences can be utilised such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial 
recognition other than in a business combination of other assets and liabilities in a transaction that affects neither the tax proﬁt nor the accounting proﬁt
deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates and interests in joint ventures except where 
the group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future
the carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufﬁcient taxable proﬁts 
will be available to allow all or part of the asset to be recovered
deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised deferred tax is charged or credited 
in the income statement except when it relates to items charged or credited directly to equity in which case the deferred tax is also dealt with in equity 70
anite annual report and accounts 2012
financial statements
notes to the accounts continued
2 summary of significant accounting policies continued
q employee benefits
i retirement benefit costs
payments to deﬁned contribution retirement beneﬁt schemes are charged as an expense as they fall due payments made to statemanaged retirement beneﬁt schemes 
are dealt with as payments to deﬁned contribution schemes where the group’s obligations under the schemes are equivalent to those arising in a deﬁned contribution 
retirement beneﬁt scheme the group has no deﬁned beneﬁt schemes
ii sharebased compensation
the group has applied the requirements of ifrs 2 “sharebased payments” in accordance with the transitional provisions ifrs 2 has been applied to all grants of equity 
instruments after 7 november 2002 that were unvested as of 1 january 2005
the group operates several equitysettled sharebased payment plans for its employees the group does not operate separate cashsettled sharebased payment plans 
however the employers’ nic liability arising on the outstanding awards is treated as such an arrangement for accounting purposes the group holds an accrual for this 
nic liability with any movement in the period being charged or credited to sharebased payments in the income statement
the group operates an inland revenue approved employee share option scheme “saye” which allows employees the ability to purchase the group’s ordinary shares 
at a discount to the current market value the fair value of the estimated number of shares expected to vest is recognised as an expense on a straightline basis over the 
vesting period 
the group has granted executive options which include approved option plans and longterm incentive plans the fair value of the awards granted is recognised as an 
expense on a straightline basis over the vesting period
r adoption of new standards and interpretations
at the date of approval of these ﬁnancial statements the following standards interpretations and amendments were issued but not yet mandatory for the group and 
early adoption has not been applied
ifrs 9 “financial instruments” covering classiﬁcation and measurement of ﬁnancial assets
ifrs 10 “consolidated financial statements” introducing a single consolidation model for all entities based on control
ifrs 11 “joint arrangements” removing the option to apply the proportional consolidation method when accounting for jointly con trolled entities
ifrs 12  “disclosures of involvement with other entities” requiring enhanced disclosures about both consolidated entities and u nconsolidated entities 
in which an entity has involvement
ifrs 13 “fair value measurement” deﬁning fair value setting out a framework for its measurement and required disclosures
ias 27 “separate financial statements” amended for items not included in ifrs 10
ias 28 “investments in associates and joint ventures” amended for conformance with new standards
amendment to ifric 14 “prepayments of a minimum funding requirement”
amendment to ifrs 1 “firsttime adoption of ifrs”
amendment to ifrs 7 “financial instruments disclosures”
amendment to ias 1 “presentation of financial statements”
amendment to ias 12 “income taxes”
amendment to ias 19 “employee beneﬁts”
the directors do not anticipate that the adoption of these standards and interpretations will have a material impact on the group’s ﬁnancial statements in the period 
of initial application  71
financial statements
2 summary of significant accounting policies continued
s critical accounting estimates assumptions and judgements
the preparation of ﬁnancial statements in accordance with ifrs requires the use of certain estimates and assumptions that affect items reported it also requires 
management to exercise its judgement in the process of applying the group’s accounting policies and make estimates about the future the areas requiring a higher 
degree of judgement or areas where estimates and assumptions are signiﬁcant to the consolidated ﬁnancial statements are discussed below
i goodwill
the determination of whether or not goodwill has been impaired requires an estimate to be made of the “value in use” of the cgu to which goodwill has been allocated 
the value in use calculation includes estimates and assumptions which are disclosed in note 13
ii intangible assets
the assessment of commercial viability relies on estimates regarding the expected future cash generation of new products and the technical feasibility of the 
development involves a degree of judgement as to when this is achieved
iii revenue recognition
the group undertakes ﬁxed price contracts that require estimates of the total revenue and total costs expected on each contract along with judgement in determining 
whether a contract’s outcome can be estimated reliably
management has exercised a degree of judgement in setting the criteria used for determining when revenue that involves several deliverable elements should be 
recognised on a bundled or unbundled basis
iv taxation
in recognising income tax assets and liabilities estimates are made of the likely outcome of decisions by tax authorities on transactions and events whose treatment for 
tax purposes is uncertain where the ﬁnal outcome of such matters is different or expected to be different from previous assessments a change to the carrying value of 
income tax assets and liabilities will be recorded in the period in which such a determination is made
v employee benefits – sharebased compensation
the calculation of the fair value on date of grant used in sharebased payment transactions requires determining the most appropriate valuation model which is 
dependent on the terms and conditions of the grant and estimates of the most appropriate inputs to the valuation model including volatility and dividend yield 
these assumptions are detailed in note 10
the total amount of this fair value to be expensed over the vesting period is determined using assumptions about the nonmarket vesting conditions that determine the 
number of shares that the employee will ultimately receive
the accrual made for the nic liability on sharebased compensation is based on assumptions of likely vesting and the share price 72
anite annual report and accounts 2012
financial statements
notes to the accounts continued
3 revenue and segmental information
31 revenue from operations
2012 2011
note £000 £000
own product software licences  52561 39198
hardware and other thirdparty product 30959 18779 
bespoke services systems integration and implementation of software products  7908 7720 
managed services  4552 4467 
software maintenance and support  26566 22572 
other – 958
revenue from operations 32 122546 93694
finance income 7 353 484
total revenue 122899 94178
32 operating segments – primary basis
the group is organised into four operating segments handset testing network testing travel and group with the exception of group which performs the head ofﬁce 
function each operating segment derives its revenue from the development installation and support of products mainly software relating to its relevant industry sector
operating segment information under the primary reporting format is as disclosed in the tables below
handset network total 
testing testing wireless travel group total 
year ended 30 april 2012 £000 £000 £000 £000 £000 £000
external revenue 76423 26044 102467 20079 – 122546
internal revenue –––– 1583 1583
total revenue 76423 26044 102467 20079 1583 124129
segment adjusted1 profitloss before tax 21458 5311 26769 4622 3376 28015
net ﬁnance charges before recycled hedge loss –––– 757 757
segment adjusted1 operating profitloss 21458 5311 26769 4622 2619 28772
sharebased payments 695 36 731 69 2227 2889
amortisation of acquired intangible assets – 3340 3340 – – 3340
restructuring costs –––– 44 44
segment operating profitloss 20763 1935 22698 4691 4890 22499
other gains and losses –––– 487 487
finance income –––– 353 353
finance charges –––– 1152 1152
profitloss from continuing operations before tax 20763 1935 22698 4691 5202 22187
tax expense –––– 5974 5974
profitloss from continuing operations 20763 1935 22698 4691 11176 16213
proﬁt from discontinued operations –––– 2253 2253
profitloss for the period 20763 1935 22698 4691 8923 18466
1 segment adjusted operating proﬁts are stated prior to the adjusting items of sharebased payments amortisation of acquired intangible assets and restructuring costs  73
financial statements
3 revenue and segmental information continued
32 operating segments – primary basis continued
handset network total 
testing testing wireless travel group total 
year ended 30 april 2011 £000 £000 £000 £000 £000 £000
external revenue 49543  24148  73691  20003  – 93694 
internal revenue –––– 1370  1370 
total revenue 49543  24148  73691  20003  1370  95064 
segment adjusted1 profitloss before tax 10003  6420  16423  4206  4594 16035 
net ﬁnance charges before recycled hedge loss –––– 1625  1625 
segment adjusted1 operating profitloss 10003  6420  16423  4206  2969 17660 
sharebased payments 314  112 202  28  104 126 
amortisation of acquired intangible assets – 3582 3582 – – 3582
restructuring costs – 281 281 – 37 244
segment operating profitloss 10317  2445  12762  4234  3036 13960 
other gains and losses –––– 19 19
finance income –––– 484  484 
finance charges –––– 2242 2242
profitloss from continuing operations before tax 10317  2445  12762  4234  4775 12221 
tax expense –––– 3270 3270
profitloss from continuing operations 10317  2445  12762  4234  8045 8951 
proﬁt from discontinued operations –––– 484 484
profitloss for the period 10317  2445  12762  4234  7561 9435 
33 other information
handset network total 
testing testing wireless travel group total 
year ended 30 april 2012 £000 £000 £000 £000 £000 £000
total assets 38599 61687 100286 11700 33889 145875
including
capital additions in the year 6799 1016 7815 435 119 8369
adjusted ebitda calculation
segment adjusted1 operating proﬁtloss 21458 5311 26769 4622 2619 28772
depreciation 2454 233 2687 433 160 3280
amortisation of intangible assets 1701 366 2067 56 31 2154
adjusted ebitda 25613 5910 31523 5111 2428 34206
1 segment adjusted operating proﬁts are stated prior to the adjusting items of sharebased payments amortisation of acquired intangible assets and restructuring costs 74
anite annual report and accounts 2012
financial statements
notes to the accounts continued
3 revenue and segmental information continued
33 other information continued
handset network total 
testing testing wireless travel group total 
year ended 30 april 2011 £000 £000 £000 £000 £000 £000
total assets 29811  65794  95605  12161  56933  164699 
including
capital additions in the year 4578  1113  5691  114  131  5936 
capital acquired in the year – 1792  1792  – – 1792 
adjusted ebitda calculation
segment adjusted operating proﬁtloss 10003  6420  16423  4206  2969 17660 
depreciation 1466  138  1604  606  512  2722 
amortisation of intangible assets 1367  200  1567  189  39  1795 
adjusted ebitda 12836  6758  19594  5001  2418 22177 
34 geographic segments – secondary basis
the operating segments operate in four principal geographic areas as set out below
the following analysis of the group’s revenue is based on the geographic location of customers irrespective of the origin of the goods or services the corresponding 
segment assets are based on the geographic location of the assets
total revenue
2012 2011
£000 £000
united kingdom 15341 15242
emea – excluding united kingdom 33557 29674
the americas 35700 25126
rest of the world 37948 23652
122546 93694
noncurrent assets
2012 2011
£000 £000
united kingdom 14265 16950
emea – excluding united kingdom 65557 68967
the americas 1213 1172
rest of the world 104 81
81139 87170
unallocated – deferred tax 4489 2491
85628 89661  75
financial statements
3 revenue and segmental information continued
35 operating expenses
2012 2011
£000 £000
distribution costs
– amortisation of acquired intangible assets 2243 2211
– other underlying operating expenses 10220 9147
12463 11358
research and development
– amortisation of internally generated assets 1622 1230
– other underlying operating expenses 14377 10237
15999 11467
– amortisation of acquired intangible assets 1097 1371
17096 12838
administrative expenses
– sharebased payments 2889 126
– restructuring costs 44 244
– other underlying operating expenses 17450 17236
20383 17354
total operating expenses 49942 41550
analysed as
– amortisation of acquired intangible assets note 14 3340 3582
– restructuring costs note 4 44 244
– sharebased payments note 10 2889 126
oneoff and nontrading operating expenses excluded from adjusted profit 6273 3700
– amortisation of internally generated assets note 14 1622 1230
– other underlying operating expenses 42047 36620
total operating expenses 49942 41550
4 restructuring costs
restructuring costs incurred in the year relate to the net impact on the property provision of changes in the provisions for nonoperational properties that were originally 
charged within restructuring costs
the restructuring costs incurred in the prior period relate to the acquisition costs for the purchase of the invex product line
2012 2011
£000 £000
net property provision establishedreleased 44 37
costs incurred on acquisition of product line – 281
44 244 76
anite annual report and accounts 2012
financial statements
notes to the accounts continued
5 other gains and losses
2012 2011
£000 £000
hedge ineffectiveness on cash ﬂow hedges 236 404
hedge ineffectiveness on net investment hedge 286 237
change in the fair value of derivative assets outstanding at year end options 53 775
change in the fair value of derivative liabilities outstanding at year end forwards 18 153
487 19
the gains arising as a result of hedge ineffectiveness are derived from the differences in the movement in the fair values of both the interest rate and crosscurrency swaps 
and the hypothetical derivative that represented the market value of the swap on the date of designation 
6 discontinued operations
there were no discontinued operations in either the current or immediately prior years the proﬁt after tax from discontinued operations of £2253000 2011 £484000 
relates to the release of tax provisions made in prior years
7 net finance charge
2012 2011
£000 £000
finance income
interest receivable and similar income 26 15
interest on shortterm deposits 237 412
interest on extended payment terms 90 57
total ﬁnance income 353 484
finance charges
bank loans and overdrafts 84 202
other loanscommitment fees1 106 82
losses on ﬁnancial instruments in a hedging relationship
– interest rate swaps and caps – cash ﬂow hedges 478 952
– crosscurrency swaps – net investment hedge 347 691
other interest 3 36
unwinding of discount on provisions2 92 146
1110 2109
recycling of fair value loss on cash ﬂow hedges3 42 133
total finance charges 1152 2242
net finance charge 799 1758
adjusted net ﬁnance charge before recycled hedge loss 757 1625
recycling of fair value loss on cash ﬂow hedges3 42 133
net finance charge 799 1758
1 finance charges on other loanscommitment fees include amortisation of issue costs of £5000 2011 £28000
2  the unwinding of discount on provisions note 26 relates to property and deferred consideration provisions
3 the recycling of fair value loss on cash ﬂow hedges arises due to the repayments of the term loan reducing the interest payments causing some of the interest cash ﬂows to be classed as no 
longer probable in accordance with ias 39 an equivalent proportion of the fair value losses under the interest rate swap arrangement previously taken to equity are released to proﬁt or loss  77
financial statements
8 profit for the year
proﬁt for the year is stated after chargingcrediting
2012 2011
£000 £000
depreciation of property plant and equipment 3280 2722
amortisation of intangible software licences 532 566
amortisation of acquired intangibles assets 3340 3582
amortisation of internally generated assets 1622 1230
proﬁt on disposal of property plant and equipment 74 –
restructuring costs 44 244
research and development costs excluding amortisation of intangible assets 14377 10237
cost of inventories recognised as expense 22674 10146
cost of write down of inventories recognised as expense 2375 –
staff costs note 9 39807 34027
foreign exchange gains 77 327
net creditcharge arising from movements in the property provision 119 341
the analysis of the auditors’ remuneration is as follows
2012 2011
£000 £000
fees payable to the company’s auditors and their associates for the audit of the company’s annual accounts 89 97
fees payable to the company’s auditors and their associates for other services to the group
– the audit of the company’s subsidiaries 133 123
total audit fees 222 220
– taxation advisory services 5 1
– other assurance services halfyear review 48 49
– corporate ﬁnance services 63 –
– other nonaudit services 25 –
total nonaudit fees 141 50
total auditors’ remuneration 363 270
total fees payable to other auditors in relation to the statutory audits of subsidiary companies amount to £12000 2011 £19000 nonaudit fees payable to other auditors in relation to tax and 
other services were £30000 2011 £26000 78
anite annual report and accounts 2012
financial statements
notes to the accounts continued
9 staff costs
the average number of persons employed including executive directors was as follows
2012 2011
number number
united kingdom 341 327
emea – excluding united kingdom 61 55
the americas 54 36
rest of the world 36 35
492 453
the amount charged in arriving at the operating proﬁt for the year in respect of all employees was as follows
2012 2011
total total 
£000 £000
wages and salaries 31826 28745 
social security costs 2979 3299 
sharebased payments 2889 126
pension costs 2113 2109 
39807 34027 
pension arrangements
the group has several deﬁned contribution group personal pension plans the contributions payable by the group in respect of the year to these schemes are charged 
to the proﬁt and loss account on an accruals basis the pension costs for both years are related to deﬁned contribution schemes only the group does not operate any 
deﬁned beneﬁt pension schemes
key management remuneration
key management personnel as disclosed under ias 24 “related party disclosures” have been identiﬁed as the board of directors
details of the board of directors’ remuneration for those who served during the year are as follows
2012 2011
£000 £000
shortterm employee beneﬁts 1536 1430
sharebased payments 650 212
2186 1642  79
financial statements
10 sharebased payments
equitysettled sharebased payment arrangements
the group operates several share option plans including saye and other sharebased schemes the terms of which are summarised below
contractual life vesting conditions share price at grant date
saye granted over either three or ﬁve years with 
six months to exercise following maturity 
after which the options expire
savings over the period three 
or ﬁve years until maturity date 
no performance conditions
closing midmarket quotation on day preceding 
date of invitation or average of three days 
preceding date of invitation less 20 discount
approved share 
option plan 
“asop” and long 
term incentive 
plan “ltip”
ordinarily exercisable between three and ten 
years from the date of grant following which 
the options expire the option holders must 
be in continued employment during this 
period if the options remain unexercised 
after a period of ten years from the date 
of grant the options expire
options vest as soon as oneyear proﬁt 
performance target is met
closing midmarket quotation on day preceding 
date of grant or average of three days preceding 
date of grant
performance share 
plan “psp” 
share matching 
plan “smp”
both plans – conditional award vests on 
third anniversary subject to performance 
conditions being met in part or in full
both plans – conditional award vests on 
third anniversary subject to performance 
conditions being met in part or in full  
award holders under the smp must be still 
employed or good leavers these award 
holders must acquire “invested shares”  
which the company matches on a two 
for one grossed up basis
psp – closing midmarket quotation on the 
dealing date before the date of grant
smp – closing midmarket quotation on the 
dealing date ending on the date of grant
share incentive 
plan “sip”
leavers can keep matching shares held for 
three years or more full tax relief available 
after ﬁve years
employees keep shares they have purchased 
“partnership shares” shares matched by 
the company “matching shares” on a one 
for one basis may be retained by good 
leavers bad leavers may retain matched 
shares only if held for three years or more 
matched shares vest in full for employees 
after ﬁve years no performance conditions
shares are market purchased on a monthly basis
management
incentive plan 
“mip”
a conditional award using market purchase 
shares is made over a performance period 
agreed prior to the time of grant subject to 
performance conditions being met in part 
or in full
vesting takes place for meeting loyalty 
and performance conditions based on 
achieving predetermined divisional ﬁnancial 
performance measures over a period of 
between one and three years
closing midmarket quotation on day preceding 
date of grant
in accordance with the accounting policy at note 2qii ifrs has been applied to all grants of equity instruments after 7 november 2002 that were unvested  
as of 1 january 2005 80
anite annual report and accounts 2012
financial statements
notes to the accounts continued
10 sharebased payments continued
details of relevant share options outstanding during the year are as follows
2012 2012 2011 2011
saye other share based saye other share based
 weighted weighted weighted weighted 
number average number  average number average number average 
of share exercise of share exercise of share exercise of share exercise  
options price options price options price options price
outstanding at 1 may 2463654  23p  24496091  3p 2709523 23p 15436852 6p
granted during the year 935291 59p 4380064 – – – 13452425  –
exercised during the year 16696 23p 1585184 6p 29940 23p  253081 35p 
lapsed during the year 54462 33p 4373675 1p 215929 23p  4140105 2p
outstanding at 30 april 3327787 33p 22917296 3p 2463654  23p  24496091  3p
exercisable at 30 april – – 4605831 35p – – 4387903  38p
weighted average fair value of 
optionsshares granted in the year 24p 71p – 31p
weighted average share price  
on date of exercise 68p 75p 43p 49p
weighted average remaining  
contractual life years 20 69 24 75
exercise price 225p–591p 00p–595p 225p 00p–595p
 saye  other share based
 weighted weighted 
outstanding average weighted outstanding average weighted 
options at remaining average options at remaining average 
30 april contractual exercise  30 april contractual exercise  
2012 life price 2012 life price
exercise price range
0p – – – 21261287 74 –
1p–40p 2406544 14 23p 1135428 11 34p
41p–60p 921243 35 59p 520581 20 52p
3327787 20 33p 22917296 69 3p
the fair values for the above options were calculated using the blackscholes and stochastic option pricing models the inputs into these models were as follows
2012 2011
other other
saye share based saye share based
grant date 31 jul 2009– 17 jan 2003– 31 jul 2009 17 jan 2003–
31 jul 2011 16 dec 2011 16 aug 2010
model used blackscholes stochastic blackscholes stochastic
weighted average share price at grant 39p 45p 29p 36p
expected volatility 422–485 00–590 422–485 00–590
expected life 3–5 years † 3–5 years †
risk free rate 09–31 00–55 24–31 00–55
expected dividend yield 15–36 0–35 36 0–35
† expected life for other sharebased payments is 100 of the options that are exercised after three years if a gain of 10 is available if this gain is not available options are held until such 
a gain can be achieved any remaining options are exercised at maturity providing that they are “in the money” for ltip proﬁt element only – 5 pa leavers in the ﬁrst three years was 
assumed under the psp smp and mip awards the expected life is equal to the vesting period of three years however for mip depending on performance annual vesting is possible  81
financial statements
10 sharebased payments continued
expected volatility was determined by calculating the historical volatility of the company’s share price over the following periods expected life up to grant date 
other sharebased schemes – three years and saye – three and ﬁve years for three and ﬁveyear contracts respectively
the expected life used in the model has been adjusted based on management’s best estimate for the effects of nontransferability exercise restrictions and 
behavioural considerations
cashsettled sharebased payment arrangements
the group does not operate separate cashsettled sharebased payment arrangements however the employers’ nic liability arising on the outstanding awards is treated 
as such an arrangement for accounting purposes
the employers’ nic liability on the outstanding awards at 30 april 2012 was £1787000 2011 £483000 which is fully provided for in the accounts
the group recognised the following total expensecredit in relation to both equitysettled and cashsettled sharebased payment arrangements during the year 
2012 2011
£000 £000
equitysettled 1481 305
cashsettled 1408 179
2889 126
11 income tax expense
continuing operations discontinued operations total
2012 2011 2012 2011 2012 2011
£000 £000 £000 £000 £000 £000
current tax
uk corporation tax 4071  922 – – 4071  922
foreign tax 2774 2495 – – 2774  2495
6845  3417 – – 6845  3417
adjustments in respect of prior years
uk corporation tax 86 27 2253 484 2167 511
foreign tax – 83 – – – 83
86 56 2253 484 2167 428
total current tax expensecredit 6931 3473 2253 484 4678  2989
deferred tax
uk 180 700 – – 180 700
foreign 777 903 – – 777 903
total deferred tax credit note 25 957 203 – – 957 203
total income tax expensecredit 5974 3270 2253 484 3721  2786
uk corporation tax is calculated at 2584 2011 2784 of the estimated assessable proﬁt for the year taxation for other jurisdictions is calculated at the rates 
prevailing in the respective jurisdictions 82
anite annual report and accounts 2012
financial statements
notes to the accounts continued
11 income tax expense continued
2012 2011
£000 £000
chargedcredited to equity
deferred tax relating to the translation adjustment to acquired intangibles 257 75
uk corporation tax relating to foreign exchange 450 484 
income tax relating to components of other comprehensive income 193 559 
deferred tax relating to sharebased payments 1818 785
1625 226
factors affecting tax charge for the year
the tax assessed on the proﬁt on ordinary activities for the year is different to the standard rate of corporation tax in the uk the differences are explained below
2012 2011
£000 £000
profit before tax
continuing operations 22187 12221
tax on group proﬁt at standard uk corporation tax rate of 2584 2011 2784 5733 3402
effects of
disallowed expenses and nontaxable income net 301  214
ineligible depreciation 82  111 
change in uk tax rate 178  129 
prior year adjustment in relation to deferred tax 59 232 
shortterm timing differences 452 559
tax losses carried forward 18 5
utilisation of tax losses 238 66
higher tax rates on overseas earnings 147 80
deferred tax not provided 178 94
adjustments to current tax charge in respect of previous periods 86 56
income tax expense for year 5974 3270
tax rate for continuing operations 269 268
the group earns its proﬁts in the uk and overseas the tax rate used for tax on proﬁt on ordinary activities is 2584 2011 2784 being the standard rate for uk 
corporation tax as the group’s head ofﬁce is in the uk as a result of the reduction in the prospective rate of uk corporation tax the deferred tax charge for the year 
was increased by £178000 2011 £129000
some components of the group’s overseas proﬁts are likely to be taxed at an effective rate that is higher than the uk rate other components due to the availability 
of losses brought forward in certain countries are likely to be taxed at a lower rate  83
financial statements
12 earnings per share
the calculations of earnings per share are based on the group proﬁt for the year adjusted proﬁt1 and weighted average number of shares in issue
basic diluted
2012 2011 2012 2011
eps summary
basic eps 65p 33p  60p 31p
basic eps for continuing operations 57p 31p 53p 29p
adjusted eps2 72p 40p 67p 38p
2012 2011
pence pence 2012 2011
per share per share £000 £000
proﬁt for the year 65 33 18466 9435
proﬁt from discontinued operations 08 02 2253 484
profit for the year on continuing operations 57 31  16213 8951 
reconciliation to adjusted proﬁt 
other gains and losses net of tax 01 – 361 14
recycled hedge losses3 net of tax – – 31 96
amortisation of acquired intangible assets net of tax 09 09 2472 2650
sharebased payments net of tax 07 01 2103 337
restructuring costs net of tax – 01 32 254
adjusted profit1 72 40 20490 11600
1 proﬁt from continuing businesses before other gains and losses recycled hedge losses amortisation of acquired intangible assets sharebased payments and restructuring costs
2 earnings per share on adjusted proﬁt1 have been included to give a clearer understanding of the results of the continuing businesses
3 recycled hedge losses relate to the recycling of fair value losses on cash ﬂow hedges reclassiﬁed from equity to proﬁt or loss in the year
diluted eps for discontinued operations is 07p 2011 02p
number of shares 000 2012 2011
weighted average number of shares in issue used to calculate basic earnings per share 283597 289781
effect of dilutive ordinary shares
– saye and share option schemes 24255 15351
number of shares used to calculate diluted earnings per share 307852 305132 84
anite annual report and accounts 2012
financial statements
notes to the accounts continued
13 goodwill
total 
£000
cost
at 1 may 2010 62438
exchange movement 1367
at 30 april 2011 63805
exchange movement 4410
at 30 april 2012 59395
accumulated impairment losses
at 1 may 2010 5115
exchange movement –
at 30 april 2011 5115
exchange movement –
at 30 april 2012 5115
net book value at 30 april 2012 54280
net book value at 30 april 2011 58690
goodwill is subject to annual impairment testing or more frequently if there are indications that goodwill might be impaired 
impairment tests
the cashgenerating unit cgu is typically the combination of a group of assets acquired which cannot be separately identiﬁed within each primary segment of the group 
the carrying amounts basis of determination and key assumptions for the goodwill impairment calculations are as follows
wireless nemo travel
carrying amount of goodwill £000 48080 6200
basis on which the cgu’s recoverable
amount has been determined  value in use value in use
key assumptions
discount rate  96 90
includes a risk factor of 06 –
longterm growth rate after ﬁve years  00 00
period over which cash ﬂows are projected years 5 5
the discount rate is based on the weighted average cost of capital wacc for the group as adjusted for risk the wacc is derived by taking the results from calculations 
using the capital asset pricing model using data from leading market data providers which gives an average value of 9 in light of this management has reduced the 
underlying discount rate to 9 2011 10
the risk adjustments relate to management’s view of the sensitivity to market and operational risks within the relevant business segments and are based on past experience
the longterm growth rate has been set at zero for each cgu management is sensitive to the technology risk within the software industry and does not deem it 
appropriate to forecast growth for products more than ﬁve years into the future
the period over which the cash ﬂows are projected is set at ﬁve years the cash ﬂow projections are based on the budgets strategic plans knowledge of the market 
performance of the sector and management’s view of the recoverable amount based on observable market prices for the cgu
sensitivity to changes in key assumptions
wireless nemo – management has based its determination of the unit’s recoverable amount on the key assumptions listed above at 30 april 2012 the recoverable 
amount of wireless nemo exceeded its carrying amount by £429m a 1 perpetual reduction in the operating cash ﬂow would reduce its recoverable amount by £10m  85
financial statements
14 other intangible assets
separately
identiﬁed
customer acquired capitalised
lists and intangible development software 
relationships technology rd assets costs licences total 
£000 £000 £000 £000 £000 £000 £000
cost
at 30 april 2010 22819 7380 1980 32179 13375 3656 49210
additions  –––– 2657 631 3288
acquisition – – 1728 1728 – 49 1777
disposals 221 1680 1040 2941 – 753 3694
exchange movement 582 6 16 592 16 29 637
at 30 april 2011 23180 5694 2684 31558 16048 3612 51218
additions  –––– 2629 697 3326
disposals –––– 475 754 1229
exchange movement 1945 479 228 2652 67 87 2806
at 30 april 2012 21235 5215 2456 28906 18135 3468 50509
amortisation
at 30 april 2010 8058 5535 1708 15301 11798 2940 30039
amortisation 2211 1089 282 3582 1230 566 5378
disposals 221 1680 1040 2941 – 753 3694
exchange movement 289 2 67 220 – 21 241
at 30 april 2011 10337 4942 883 16162  13028  2774 31964
amortisation 2243 645 452 3340 1622 532 5494
disposals –––– 475 754 1229
exchange movement 1065 372 102 1539 6 67 1612
at 30 april 2012 11515 5215 1233 17963  14169  2485 34617
net book value at 30 april 2012 9720 – 1223 10943 3966 983 15892
net book value at 30 april 2011 12843 752 1801 15396 3020 838 19254
disposals include the writing off of cost and amortisation of assets no longer in use 86
anite annual report and accounts 2012
financial statements
notes to the accounts continued
15 property plant and equipment
freehold  plant ﬁxtures
land and  equipment and  
buildings computers motor vehicles total 
 £000 £000 £000 £000
cost
at 30 april 2010 5283 18757 4005 28045
additions – 2322 324 2646
acquisition – – 17 17
disposals – 644 3 647
written off against provisions – – 1051 1051
exchange movement 1 43 3 47
at 30 april 2011 5282 20392 3289 28963
additions – 4524 519 5043
disposals – 2294 920 3214
exchange movement – 31 85 116
at 30 april 2012 5282 22591 2803 30676
accumulated depreciation and impairment
at 30 april 2010 409 16415 1183 18007
charge for the year 74 1794 854 2722
disposals – 644 3 647
written off against provisions – – 305 305
exchange movement – 41 1 40
at 30 april 2011 483 17524 1730 19737
charge for the year 75 2669 536 3280
disposals – 2293 919 3212
exchange movement – 30 66 96
at 30 april 2012 558 17870 1281 19709
net book value at 30 april 2012 4724 4721 1522 10967
net book value at 30 april 2011 4799 2868 1559 9226
disposals include the writing off of cost and depreciation of assets no longer in use  87
financial statements
16 investments
the group’s principal subsidiary undertakings are as follows
 ownership  
 percentage by   place of 
the group at  incorporation 
company name principal activity of the company 30 april 2012  registration
held directly by the company
anite holdings international limited holding company 100  england  wales
anite properties plc property holding company 100  england  wales
anite systems holdings limited holding company 100  england  wales
anite telecoms holdings limited holding company 100  england  wales
anite financial management limited investment holding company 100  england  wales
anite travel limited travel software solutions and managed services 100  england  wales
held indirectly by the company
anite travel systems gmbh travel software solutions and managed services 100  germany
anite travel systems pty ltd travel software solutions and managed services 100  australia
anite finland ltd telecoms testing technologies for wireless devices 100  finland
anite telecoms limited telecoms testing technologies for wireless devices 100  england  wales
anite telecoms india pvt ltd telecoms testing technologies for wireless devices 100  india
anite telecoms inc telecoms testing technologies for wireless devices 100 usa
anite telecoms kk telecoms testing technologies for wireless devices 100  japan
anite telecoms korea limited telecoms testing technologies for wireless devices 100  korea
anite singapore pte ltd telecoms testing technologies for wireless devices 100  singapore
anite wireless trading beijing ltd telecoms testing technologies for wireless devices 100  china
reilrop bv holding company 100  the netherlands1
1 principal place of business in england
all companies listed above have been included in the consolidated accounts 
unless otherwise stated the country of incorporation is also the country in which each company has its principal place of business
17 inventories
2012 2011
£000 £000
electronic components 10195 4722
inventories are stated at lower of cost and net realisable value 88
anite annual report and accounts 2012
financial statements
notes to the accounts continued
18 trade and other receivables
2012 2011
£000 £000
current assets
trade debtors 25229 26590
less provision for impairment of trade receivables 983 1255
trade debtors net of provision 24246 25335
other receivables 1555 1572
prepayments 2810 2218
accrued income1 4245 2814
32856 31939
1 amounts due from customers under construction contracts have been reclassiﬁed to accrued income as speciﬁc disclosure is not material
the amounts presented in the table above are net of provision for doubtful recoverability and foreseeable losses
the group’s policy is to ensure that all credit trade customers are subject to credit veriﬁcation procedures and where appropriate parent guarantee and letters of credit 
especially for overseas customers are used so that the group is exposed to a minimum level of bad debts
the credit risk for trade receivables by business segments for 2012 and 2011 is as follows
 ● in travel the top four customers represent 9 2011 12 of the group’s trade receivables
 ● in wireless the top four customers represent 26 2011 22 of the group’s trade receivables
overall the group has no customer that accounted for 9 or more of the accounts receivable at 30 april 2012 2011 7 and therefore there is no signiﬁcant 
concentration of credit risk since the risk is spread over a large number of unrelated counterparties 
the average credit period for trade receivables is 59 days 2011 76 days in the united kingdom trade receivables are typically on 30 days’ credit terms whilst in certain 
cases a schedule of payments or extended payments have been agreed in other geographical areas especially europe trade receivables can be based on longer credit 
terms of up to 90 days before the debt falls due for payment interest may be charged on any outstanding balance that is 30 days overdue at 30 april 2012 and 2011 
the trade receivables were noninterest bearing
the group has provided for all debts that individually are deemed doubtful at their estimated irrecoverable amount with the exception of debts for which the revenue 
has yet to be recognised or where the monies are received prior to the reporting date the group applies a collective assessment of impairment for debts with similar 
credit risk characteristics these characteristics are determined on the basis of the group’s historical loss experience within the industry and provide in varying 
percentages for debts that are overdue the agreed payment terms the reason for the policy is because overdue receivables carry an increased risk of not being 
recoverable the table below shows the movements in the provision for impairment of trade receivables
2012 2011
£000 £000
at 1 may 1255 1000
charge for the year through income statement 327 457
release in the year 561 55
utilised for bad debt written off 38 147
at 30 april 983 1255  89
financial statements
18 trade and other receivables continued
the ageing of the individually impaired trade receivables is as follows
2012 2011
£000 £000
one to two months overdue – –
two to three months overdue 290 523
more than three months overdue 693 732
983 1255
ageing of trade receivables excluding those that have been impaired
2012 2011
£000 £000
neither past due nor impaired 19932 21294
past due but not impaired
less than one month overdue 1613 1823
one to two months overdue 793 552
two to three months overdue 435 547
more than three months overdue 1473 1119
24246 25335
the neither past due nor impaired and those that are past due but not impaired balances are due from customers with good credit ratings there is no known reason why 
these amounts will not be recovered in due course
the directors consider that the carrying amount of trade and other receivables approximates their fair value
the trade receivables do not include any advances or retentions at 30 april 2012 2011 £nil 90
anite annual report and accounts 2012
financial statements
notes to the accounts continued
19 cash and cash equivalents
2012 2011
£000 £000
cash at bank and in hand 8423 13503
term and overnight deposits 8524 24164
16947 37667
note €400000 2011 €400000 of the cash at bank and in hand is held as security against forward currency exchange contracts these contracts expire within two 
months 2011 two months of the balance sheet date 
cash at bank and in hand was invested on a ﬂoating rate basis and is therefore subject to cash ﬂow interest risk the group has the legal right of setoff for certain of its 
overdraft and cash balances under an offsetting arrangement within its banking facilities
term and overnight deposits comprise money market deposits which attract interest rates based on market rates placed on overnight deposit 2011 ﬁxed for periods 
of up to six months the directors consider that the carrying amounts of cash and cash equivalents approximate to their fair values
for the purposes of the consolidated cash ﬂow statement cash and cash equivalents comprise the above amounts
20 trade and other payables
2012 2011
£000 £000
trade creditors 8988 5134
other taxes and social security 1740 1385
deferred income 14767 12349
accruals 11870 11282
other creditors 376 388
37741 30538
trade and other payables principally comprise trade purchases and nonoperating costs
the directors consider that the carrying amount of trade payables approximates their fair value
the trade and other payables do not include any retentions at 30 april 2012 2011 £nil  91
financial statements
21 bank borrowings
2012 2011
£000 £000
bank loan – 9995
the borrowings are repayable as follows 
on demand or within one year – 9995
the bank loan had been taken out on 30 november 2006 as part of the borrowing facility and was repaid in full on 30 november 2011 at the previous balance sheet 
date the loan comprised a £10m ﬁxed term loan less £5000 of unamortised issue costs being amortised over the ﬁveyear period of the loan the loan carried a weighted 
average ﬂoating interest rate of 143 2011 127 and exposed the group to cash ﬂow interest rate risk this interest rate risk was fully hedged by the group using 
derivative ﬁnancial instruments note 23
the bank loan was initially measured at fair value and net of transaction costs the bank loan was subsequently measured at amortised cost using the effective interest 
method with interest expense recognised on an effective yield basis the average effective interest rate for this loan was 143 2011 128
22 net cash
2012 2011
note £000 £000
cash and cash equivalents 19 16947 37667
bank borrowings – current 21 – 9995
net cash  16947 27672
a reconciliation of the movement in net cash for the year is as detailed below   
2012 2011
£000 £000
net cash at 1 may 27672 29836
net decrease in cash and cash equivalents 20431 7020
unamortised issue costs of bank borrowings 5 28
decrease in bank borrowings 10000 5000
exchange movement 289 116
net cash at 30 april 16947 27672 92
anite annual report and accounts 2012
financial statements
notes to the accounts continued
23 derivative financial instruments
details of the signiﬁcant accounting policies and methods adopted the basis of measurement and the basis on which income and expenses are recognised in respect 
of each class of derivative ﬁnancial instrument are disclosed in note 2 to the ﬁnancial statements
derivative ﬁnancial instruments are carried at fair value the fair values are derived from inputs that are observable for the asset or liability either directly or indirectly and 
relevant for the term currency and instrument and are therefore level 2 as described in ifrs 7 the fair values of the group’s derivative ﬁnancial instruments are as follows
2012 2012 2011 2011
assets liabilities assets liabilities 
£000 £000 £000 £000
derivative financial assets
foreign currency contracts 92 – 433 –
foreign currency options –– 53 –
derivative financial liabilities
foreign currency contracts –– –25
interest rate swaps – in a cash ﬂow hedge relationship –– – 474
crosscurrency swaps – in a net investment hedge relationship –– – 21895
92 – 486 22394
analysed as expiring
within one year 92 – 486 22394
cash flow hedges – interest rate swaps
the group uses interest rate swaps to manage its exposure to interest rate movements on its bank borrowings
at 30 april 2012 the group holds no interest rate swaps for the ﬁrst half of the year until 31 october 2011 the group held interest rate swaps with notional principal 
amounts totalling £20m that had ﬁxed interest rate payments at an average rate of 5535 and had ﬂoating interest receipts at libor rate on 31 october 2011  
these swaps matured and have not been replaced
the fair value of the interest rate swaps as shown above were based on market values of equivalent instruments at the balance sheet date interest rate swaps to the value 
of £nil 2011 £237000 were designated and effective as cash ﬂow hedges and the fair value thereof had been deferred in equity interest rate swaps to the value of £nil 
2011 £237000 were designated but were no longer effective under ias 39 during the period losses of £42000 2011 £133000 previously held in reserves have been 
recycled from reserves to the income statement and are disclosed as ﬁnance charges note 7 under the heading “recycling of fair value loss on cash ﬂow hedges” a gain 
of £236000 2011 £404000 arising due to ineffectiveness has been credited to the income statement and is disclosed as other gains and losses under the heading 
“hedge ineffectiveness on cash ﬂow hedges”
net investment hedges – crosscurrency swaps
the group has overseas subsidiaries which operate mainly in north america northern europe and asia paciﬁc and whose revenues and expenses are denominated  
in their local currencies the group does not currently hedge its investments in overseas subsidiaries other than through natural hedges
until 31 october 2011 the date on which the combined derivative ﬁnancial instruments were settled the group held a derivative ﬁnancial instrument comprising  
of a combination of forward exchange contracts and a crosscurrency swap the principal amount under this combined instrument was €nil at the same time up 
to 31 october 2011 the designated principal value of the hedged item was also £nil from 27 april 2010 the group had ceased to apply hedge accounting to its 
eurodenominated net investment in wireless nemo using this derivative ﬁnancial instrument
at 30 april 2011 the combined derivative ﬁnancial instrument had indicated a mark to market liability of £21877000 of which £286000 related to the future quarterly 
interest payments and £21591000 to the net exchange of principals the net exchange of principals was settled in cash on 31 october 2011
the ﬁxed interest rates on the crosscurrency swap elements ranged from 464 to 519 2011 464 to 519 the group had also entered into forward exchange 
contracts to eliminate the impact of exchange rate movements on the net interest payablereceivable at 30 april 2011 these forward contracts indicated a mark to 
market liability of £18000 a credit of £18000 2011 £153000 has been recognised in the income statement and is disclosed as other gains and losses under the 
heading “change in the fair value of derivative liabilities outstanding at year end forwards”
the fair value change on the crosscurrency swap is wholly recognised in the income statement during the year due to the principal amounts hedged being £nil  
a gain of £286000 2011 £237000 relating to ineffectiveness was recognised in the income statement during the year and is disclosed as other gains and losses  
under the heading “hedge ineffectiveness on net investment hedge”  93
financial statements
24 financial risk management
a capital risk management
the group manages its capital structure to ensure that the entities in the group will be able to continue as a going concern while maximising the returns to the 
shareholders through the optimisation of the net debt and equity balance
the group is currently in a net cash position therefore the capital employed is equivalent to the shareholders’ funds of £921m 2011 £817m
the group has a credit facility agreement under which the group is subject to certain ﬁnancial covenants relating to leverage and interest cover and also the requirement 
that the maximum preagreed level of overdrafts and ancillary facilities granted to the group companies that are guarantors of the credit facility are not exceeded 
the group has complied with these covenants and requirements 
b significant accounting policies
details of the signiﬁcant accounting policies and methods adopted the basis of measurement and the basis on which income and expenses are recognised in respect 
of each class of ﬁnancial asset liability and equity are disclosed in note 2
c categories of financial instruments
the following assets and liabilities at carrying values meet the deﬁnition of ﬁnancial instruments and are classiﬁed according to the following categories
2012 2011
note £000 £000
fair value through profit and loss – held for trading
foreign currency contracts 23 92 433
foreign currency options 23 – 53
loans and receivables
cash and cash equivalents 19 16947 37667
trade receivables 18 24246 25335
financial assets 41285 63488
fair value through profit and loss – held for trading
foreign currency contracts 23 – 25
amortised cost
bank borrowings 21 – 9995
trade creditors 20 8988 5134
deferred consideration in a business combination 26 – 599
derivative financial instruments in designated hedge accounting relationships
interest rate swaps 23 – 474
crosscurrency swaps 23 – 21895
financial liabilities 8988 38122
d financial risk management
the group’s ﬁnancial assets and liabilities mainly comprise cash and liquid resources foreign currency contracts and various items such as trade receivables and payables 
that arise directly from its operations
the main risks arising from the group’s ﬁnancial instruments are market risk primarily exposure to changes in interest rates and foreign currency risks liquidity risk and 
credit risk the board reviews and agrees policies for managing each of these risks which are summarised below 94
anite annual report and accounts 2012
financial statements
notes to the accounts continued
24 financial risk management continued
e market risk – interest rate
the group ﬁnances its operations and acquisitions through a mixture of retained reserves and bank facilities the group seeks to minimise overall net interest expense 
and where there are surplus funds to obtain a fair market rate of return the group operates a cashpooling arrangement for all its uk operating companies and 
endeavours to balance liquidity requirements with achieving a market rate of return on cash through the use of shortterm money market deposits or other term deposits 
appropriate ﬁnancial instruments are used to mitigate the impact of changes in interest payable in respect of signiﬁcant borrowings
the ﬁnancial assets and liabilities that are interest bearing and expose the group to interest rate risk are as follows
i cash and equivalents note 19 the weighted average ﬂoating interest rate for these ﬁnancial assets which were based on sterling market rates ﬁxed for periods 
up to three months was 156 2011 118
ii bank borrowings note 21 during the period that the group had outstanding bank borrowings the weighted average ﬂoating interest rate for bank borrowings 
was 143 2011 127 this was linked to libor plus a margin for bank loans the margin varied between 060 and 105 dependent on the ratio of net debt to 
ebitda reviewed annually but during the year the margin remained constant at 060 2011 060
the contractual interest rate on the overdrawn balance is based on 25 per annum over the bank’s base rate for its sterling accounts and 1 per annum over the bank’s 
relevant shortterm offered rate for any other currency accounts
iii interest rate swaps at 30 april 2012 the group had no interest rate swaps but these derivatives had been used to manage the group’s exposure to interest rate 
risk on the bank borrowings that were repaid during the year see note 23 for details of the interest rate
iv crosscurrency swaps at 30 april 2012 the group had no crosscurrency swaps but these derivatives had been used to hedge the net investment of an overseas 
subsidiary see note 23 for details of the interest rate
interest rate sensitivity analysis
the sensitivity analysis below has been determined based on the exposure to interest rates for both ﬁnancial assets and liabilities both including derivative instruments 
as listed above at the balance sheet date and adjustments have been made particularly where some of the signiﬁcant derivatives only existed for part of the year
with all other variables held constant the table below demonstrates the sensitivity to a 05 change in interest rates applied to the major currencies of net variable rate 
assetsliabilities 05 is the sensitivity rate that represents management’s assessment of the reasonably possible change in interest rates in the next 12 months
£denominated usdenominated €denominated
2012 2011 2012 2011 2012 2011
£000 £000 £000 £000 £000 £000
cash and cash equivalents 11909 28029 1378 3902 2898 4931
bank borrowings – 9995 – – – –
interest rate swaps – ﬂoating rate – 20000 – – – –
net variable rate assetsliabilities 11909 38034 1378 3902 2898 4931
£ interest rate us interest rate € interest rate
2012 2011 2012 2011 2012 2011
£000 £000 £000 £000 £000 £000
profit before tax – gainloss
05 change in interest rate 60 190 7 20 14 25
–05 change in interest rate 60 190 7 20 14 25
the fair value of ﬁnancial assets and liabilities is not materially different from the book value recorded at 30 april 2012 and 2011  95
financial statements
24 financial risk management continued
f market risk – foreign currency
the group is subject to a crossborder transactional currency exposure in respect of trading outside of each operating company’s functional currency where possible 
currency receivables and payables are matched creating a natural hedge any surplus crossborder transactional exposure is identiﬁed and a proportion is hedged using 
appropriate derivative instruments the proportion of forecast cash ﬂows that will be hedged is reviewed regularly in the light of experience the policy is that any surplus 
foreign currency is converted into sterling at the earliest opportunity
as detailed in note 23 the group has overseas subsidiaries whose revenues and expenses are denominated in their local currencies currently the group hedges its 
investments in overseas subsidiaries through natural hedges and does not use derivative ﬁnancial instruments
foreign currency sensitivity analysis
the group has a eurodenominated investment in wireless nemo that is not hedged consequently any foreign exchange movements will create a gain or loss on the 
value of the investment with all other variables held constant the effect of a 10 appreciation and depreciation of the euro against sterling applied to the investment 
will be either a gain of £78m 2011 £88m or a loss of £64m 2011 £72m in other reserves respectively
the sensitivity analysis below is based on a 10 appreciationdepreciation of the euro and us dollar against sterling applied to the net monetary assets or liabilities 
of the group that are not denominated in the functional currency of the operating unit involved
£denominated usdenominated €denominated
2012 2011 2012 2011 2012 2011
£000 £000 £000 £000 £000 £000
monetary assets 361 297 9817 12309 2030 3225
monetary liabilities 18 3 6498 2560 165 5240
net monetary assetsliabilities 343 294 3319 9749 1865 2015
£ currency impact us currency impact € currency impact
2012 2011 2012 2011 2012 2011
£000 £000 £000 £000 £000 £000
profit before tax – gainloss
10 appreciation 38 27 369 1083 207 224
10 depreciation 31 33 302 886 170 183
g other price risks
the group has a limited exposure to commodity price risks through its reliance on precious metals used in the manufacture of hardware components in management’s 
opinion this does not represent a material area of risk to the group due to the high gross margins and therefore no steps have been taken to hedge the exposure 96
anite annual report and accounts 2012
financial statements
notes to the accounts continued
24 financial risk management continued
h forward foreign exchange contracts
anite’s strategy is to hedge a proportion of the forecast future cash ﬂows for a period of up to three months creating a cash ﬂow movement to offset the translational 
movement the proportion of forecast cash ﬂows that will be hedged is reviewed periodically in the light of experience
at 30 april 2012 2011 assets £433000 liabilities £25000 the group had the following outstanding contracts
 weighted total total total
 average contract value fair value fair value
maturity date  ﬁxed rate £000 €000 £000
forward contracts to sell euro and receive sterling
up to july 2012 11461 1353 1550 90
 weighted total total total
 average contract value fair value fair value
maturity date note ﬁxed rate €000 us000 £000
forward contracts to sell us dollars and receive euro
up to june 2012 13223 5522 7300 2
derivative assets 23 92
i credit risk
credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a ﬁnancial loss to the group
the group’s maximum exposure to credit risk is as follows
2012 2011
note £000 £000
cash and cash equivalents 19 16947 37667
derivative ﬁnancial instruments 23 92 486
trade receivables 18 24246 25335
 41285 63488
the credit risk on cash and derivative ﬁnancial instruments is limited because the counterparties to these assets are highly rated ﬁnancial institutions in addition the 
group has further mitigated this risk by spreading cash deposits over a range of ﬁnancial institutions with no more than £10m being deposited with any one counterparty
the group’s policy to mitigate potential credit risks and the concentration of credit risks of trade receivables is detailed in note 18 – trade and other receivables 97
financial statements
24 financial risk management continued
j liquidity risk
the group’s objective is to maintain a balance and continuity of funding and ﬂexibility through the use of internally generated cash resources bank overdrafts and  
other bank facilities at the balance sheet date the group has no signiﬁcant borrowings from third parties and therefore liquidity risk is not considered a signiﬁcant  
risk at this time
the group’s uk overdraft facility was renewed during the year at £5m net 2011 £5m net the net amount drawn down under these facilities at 30 april 2012 and 
2011 was £nil 
in october 2011 the group entered into a new ﬁveyear facility with lloyds banking group plc this facility consists of a revolving credit facility of £20m the amount 
of undrawn facilities at 30 april 2012 was £20m 2011 undrawn under old facility £20m and total undrawn facilities including the overdraft facility were £25m 
2011 £25m the revolving credit facility incurs commitment fees at market rates
this facility is available to be drawn to support the general corporate purposes for the group including working capital requirements
maturity profile
the table below summarises the maturity proﬁle of the group’s undiscounted cash ﬂows of the ﬁnancial liabilities and the earliest date on which the group is required 
to pay
effect of
discount
less than undiscounted ﬁnancing 
one year balance rates 2012
2012 £000 £000 £000 £000
trade creditors note 20 8988 – – 8988
effect of
discount
less than undiscounted ﬁnancing 
one year balance rates 2011
2011 £000 £000 £000 £000
bank borrowings – variable rate note 21 10000 10000 5 9995
trade creditors note 20 5134 5134 – 5134
15134 15134 5 15129
derivative financial instruments
interest rate swaps 493 493 19 474
crosscurrency swaps1 21947 21947 52 21895
37574 37574 76 37498
1 split of crosscurrency swaps between 
£leg assets  68134 49 68085
€leg liabilities  90081 101 89980
 21947 52 21895 98
anite annual report and accounts 2012
financial statements
notes to the accounts continued
25 deferred tax assetsliabilities
shortterm 
accelerated tax development intangible share timing
depreciation costs assets based differences total 
£000 £000 £000 £000 £000 £000
at 30 april 2010 1658 366 4389 666 448 1983
creditcharge to income statement for the year 184 288 903 211 439 203
credit to equity for the year – – 75 785 – 710
at 30 april 2011 1474 654 3561 1662 9 1070
creditcharge to income statement for the year 247 120 777 150 397 957
credit to equity for the year – – 257 1818 – 2075
at 30 april 2012 1227 774 2527 3630 406 1962
deferred tax is recognised at the latest enacted rate for uk temporary differences this is 24 april 2011 26 certain deferred tax assets and liabilities have been 
offset to the extent permitted by ias 12 the following is the analysis of the deferred tax balances after offset for balance sheet purposes
2012 2011
£000 £000
deferred tax assets 4489 2491
deferred tax liabilities 2527 3561
1962 1070
2012 2011
£000 £000
deferred tax assets not recognised
income losses carried forward 6266 7122
capital losses carried forward 28093 17706
surplus act carried forward 2457 2457
36816 27285
deferred tax assets in respect of losses carried forward in certain companies have not been recognised because at present it is not envisaged that there will be sufﬁcient 
taxable proﬁts in those companies from which future reversal of these reliefs can be deducted the unutilised reliefs may be carried forward for various periods the gross 
temporary differences relating to these unprovided deferred tax assets are as follows
2012 2011
£000 £000
temporary differences in respect of which no deferred tax asset has been recognised
income losses carried forward 24405 25725 
capital losses carried forward 117056 68095 
141461 93820 
deferred tax liabilities have not been recognised for the withholding tax and other taxes that would be payable on the unremitted earnings of certain overseas subsidiaries 
no provision is required since the group is in a position to control the timing of the reversal of these differences and either it is probable that such differences will not 
reverse in the foreseeable future or no tax is payable on the reversal
2012 2011
£000 £000
temporary differences in respect of which no deferred tax liability has been recognised
undistributed earnings of subsidiaries 24404 18428  99
financial statements
26 provisions
deferred property other group 
consideration warranties provision provisions total
£000 £000 £000 £000 £000
at 1 may 2011 599 3210 4445 – 8254
release of provision – – 218 – 218
established during the year – operating expenses – – 99 300 399
established during the year – restructuring costs – – 44 – 44
utilised during the year 622 – 2132 – 2754
unwinding of discount – – 92 – 92
exchange movement 23––– 23
at 30 april 2012 – 3210 2330 300 5840
2012 2011
£000 £000
analysed as 
current liabilities 4899 4794
noncurrent liabilities 941 3460
5840 8254
the warranty provision has been made to cover any potential claims made by disposed businesses during the contractual warranty period it is expected to be utilised 
in one to three years
the property provision is in respect of all properties surplus to business requirements and dilapidation provisions for properties currently in use the provision is calculated 
in accordance with ias 37 as disclosed in note 2 to the accounts it is expected to be utilised in one to three years
other provisions include contractual provisions that are expected to be utilised within one year
27 share capital
deferred 
ordinary shares redeemable shares 
of 1125p each of £1 each
number £000 number £000
authorised
at 30 april 2011 and 2012 355555556 40000 50000 50
allotted issued and fully paid 
at 30 april 2011 298936276 33630 50000 50
issued during the year 195603 22 – –
at 30 april 2012 299131879 33652 50000 50
a redeemable share capital
these deferred shares of £1 each may be redeemed at any time at the option of the company at a price of 1p each they are nonequity shares and have no voting rights
b shares issued during the year
195603 ordinary shares were issued at prices between 305p and 565p each in respect of the exercise of options under the approved share option scheme and 
long term incentive plan 100
anite annual report and accounts 2012
financial statements
notes to the accounts continued
27 share capital continued
c outstanding options
as at 30 april 2012 the following options over the company’s ordinary shares had been granted and were still outstanding
 executive 
 share option saye option
 grantsawards schemes total
outstanding at 1 may  22782472  2463654  25246126
granted during the year 4262684  935291  5197975
exercised during the year 1585184  16696  1601880
lapsed during the year 4720215  54462  4774677
outstanding at 30 april 20739757   3327787   24067544 
subscription price  00p–570p  225p–591p 
dates exercisable may 2012–december 2021 september 2012–august 2017 
weighted average exercise price 3p 33p
d own shares reserve
the own shares reserve represents the cost of shares in anite plc purchased in the market for the following trusts of the company
i employee benefit trust ebt the ebt purchases shares in the group for the beneﬁt of employees under the various group share option schemes where market 
purchase shares are to be used to satisfy the awards all of the shares held at 30 april 2012 will continue to be held until the performance conditions of all the relevant 
share plan awards are fulﬁlled shares were sold during the year to satisfy awards that vested and were exercised by employees further details of the various employee 
share schemes in operation are given in note 10
ii share incentive plan sip the company’s sip is used to satisfy the awards under the terms of the sip scheme these shares will be held until the conditions of  
the sip are fulﬁlled 
the movements in the number and value of shares held under both the ebt and sip schemes are as follows
ebt sip total
number £000 number £000 number £000
held at 1 may 2011 13072619 8090 2185159 1139 15257778 9229
purchased during the year 2000000  1531  117380  97  2117380  1628 
sold during the year 1406277 875 – – 1406277 875
held at 30 april 2012 13666342  8746  2302539  1236  15968881  9982   101
financial statements
28 other reserves
other reserves are analysed as follows
net exchange  cash ﬂow 
differences hedges total 
£000 £000 £000
at 1 may 2010 5932 816 6748
exchange differences arising on translation of foreign operations 1941 – 1941 
cash ﬂow hedges – 404 404
recycling of fair value loss on cash ﬂow hedges to proﬁt or loss – 133 133
tax charge on items taken directly to other comprehensive income 559 – 559
at 30 april 2011 4550 279 4829 
exchange differences arising on translation of foreign operations 6745 – 6745 
cash ﬂow hedges – 237 237
recycling of fair value loss on cash ﬂow hedges to proﬁt or loss – 42 42
tax charge on items taken directly to other comprehensive income 193 – 193
at 30 april 2012 11488 – 11488
29 dividends
dividends paid during the year are set out below
2012 2011
pence 2012 pence 2011
payment date per share £000 per share £000
for the year ended 30 april 2010
final dividend 26 october 2010 0650 1905
for the year ended 30 april 2011
interim dividend 18 february 2011  0315 921
final dividend 25 october 2011  0735   2101 
for the year ended 30 april 2012
interim dividend 17 february 2012  0375  1070 
3171 2826
at the agm on 13 september 2012 a ﬁnal dividend in respect of the year ended 30 april 2012 of 1125p per share expected total £3365000 is to be proposed 102
anite annual report and accounts 2012
financial statements
notes to the accounts continued
30 commitments
a capital commitments
at 30 april 2012 the group had no capital commitments 2011 £880000 of electrical components delivered in july 2011
b operating lease arrangements
2012 2011
£000 £000
lease payments under operating leases recognised as an expense in the year 2440 2383
the group has total outstanding commitments under noncancellable operating leases which fall due as follows
land and buildings other
2012 2011 2012 2011
£000 £000 £000 £000
leases expiring in one year 2090  2429 84 6
leases expiring in two to ﬁve years inclusive 4141  3388 – 20
leases expiring after ﬁve years 3290  1960 – –
 9521  7777 84 26
31 contingent liabilities
there are contingent liabilities that arise in the normal course of business in respect of indemnities warranties guarantees and legal claims however the directors  
have considered that none of these claims are expected to result in a material loss to the group there has been no change in the directors’ assumptions in regard to 
contingent liabilities since the year ended 30 april 2011
32 related party transactions
a key management personnel
the details of key management remuneration are disclosed in the remuneration report the key management personnel are deemed to be the members of the board  
of directors of the company which has responsibility for planning directing and controlling the activities of the company transactions with key management personnel 
are disclosed in the remuneration report
b the board is not aware of any related party transactions that should be disclosed
i no guarantees have been provided to any related parties 
ii transactions between anite plc and its subsidiaries which are related parties have been eliminated on consolidation  103
anite annual report and accounts 2012
financial statements
financial statements
2012 2011 2010 2009 2008
£000 £000 £000 £000 £000
revenue
revenue – continuing operations 122546 93694 78770 90098 91648
revenue – discontinued and disposed operations – – – 28810 63535
total revenue 122546 93694 78770 118908 155183
results
adjusted operating proﬁt – continuing operations 28772 17660 11856 20045 18709
operating proﬁtloss – continuing operations 22499  13960 1843 9361 10216
proﬁtloss attributable to equity holders of anite plc 18466  9435 3427 36343 13234
assets employed
noncurrent assets 85628  89661 88938 103592 121170
current assets 60247  75038 74896 74219 86555
current liabilities 50306 75978 42845 42303 82096
noncurrent liabilities 3468 7021 43039 51598 63085
 92101  81700 77950 83910 62544
key statistics
earnings per share
total operations  – basic 65p 33p 12p 113p 38p
– diluted 60p 31p 12p 108p 37p
proposed dividend per share history
dividend per share  – interim 0375p 0315p 030p 030p 028p 
– final 1125p 0735p 065p 065p 060p
total dividend per share 150p 105p 095p 095p 088p
fiveyear summary 104
anite annual report and accounts 2012
financial statements
2012 2011
note £000 £000
noncurrent assets
intangible assets 2 48 39
property plant and equipment 3 119 113
investments in subsidiaries 4 177354 141692
deferred tax assets 5 3027 1233
 180548 143077
current assets
trade and other receivables 6 696 566
amounts owed by group undertakings 7 35289 48339
current tax receivable 2397 –
cash and cash equivalents 8 734 11751
 39116 60656
total assets 219664 203733
current liabilities
trade and other payables 9 5401 3683
amounts owed to group undertakings 7 65874 58655
provisions 10 1184 –
current tax payable – 2828
 72459 65166
noncurrent liabilities
provisions 10 – 2749
total liabilities 72459 67915
net assets 147205 135818
equity
issued share capital 11 33702 33680
share premium account  25628 25560
own shares  9982 9229
merger reserve  39029 39029
capital redemption reserve  2741 2741
retained earnings  56087 44037
total equity 147205 135818
the ﬁnancial statements of anite plc company no 01798114 were approved by the board on 2 july 2012 and signed on its behalf by
christopher humphrey
chief executive
richard amos
group finance director
company balance sheet  105
anite annual report and accounts 2012
financial statements
financial statements
issued share capital
share premium own merger redemption retained 
capital account shares reserve reserve earnings total 
£000 £000 £000 £000 £000 £000 £000
balance at 1 may 2010 33652 25500 3895 39029 2741 47391 144418
changes in equity for the year  
to 30 april 2011
total comprehensive loss for the year ––––– 691 691
issue of share capital 28 60–––– 88
purchase of own shares into employee beneﬁt trust – – 5351 – – – 5351
sale of own shares from employee beneﬁt trust – – 17 – – 12 5
recognition of equitysettled sharebased payments  
after tax company ––––– 406 406
recognition of equitysettled sharebased payments  
after tax subsidiaries ––––– 231 231
dividend paid ––––– 2826 2826
balance at 30 april 2011 33680 25560 9229 39029 2741 44037 135818
changes in equity for the year  
to 30 april 2012
total comprehensive income for the year ––––– 13290 13290
issue of share capital 22 68–––– 90
purchase of own shares into employee beneﬁt trust – – 1628 – – – 1628
sale of own shares from employee beneﬁt trust – – 875 – – 871 4
recognition of equitysettled sharebased payments  
after tax company ––––– 2140 2140
recognition of equitysettled sharebased payments  
after tax subsidiaries ––––– 662 662
dividend paid ––––– 3171 3171
balance at 30 april 2012 33702 25628 9982 39029 2741 56087 147205
company statement of changes in equity 106
anite annual report and accounts 2012
financial statements
2012 2011
total total 
note £000 £000
operating activities
proﬁtloss for the year 13290 691
adjustments for
tax credit  3391 3239
sharebased payment expense  2143 104
finance charges  1134 393
amortisation of intangible assets 2 31 39
depreciation of property plant and equipment 3 72 357
exchange differences arising on translation of amount due to subsidiary undertakings 4481 1403
impairment of investment in subsidiaries 4 20000 –
reversal of impairment on amounts due from subsidiaries 13 78
dividend income from subsidiary undertakings  31515 –
decrease in provisions  1600 1738
operating cash ﬂows before movements in working capital  4330 3450
increasedecrease in receivables  150 30
increase in payables 349 1216
cash used in operations 4131 2204
interest paid toreceived from subsidiary undertakings  486 505
interest received 193 195
interest paid 53 27
income taxes paid 3000 –
net cash used in operating activities 7477 1531
cash flow from investing activities
dividend income from subsidiary undertakings  18387 –
purchase of property plant and equipment 78 78
purchase of software licences 40 53
net cash used in investing activities 18269 131
cash flow from financing activities
issue of ordinary share capital 90 88
purchase of own shares into employee beneﬁt trust  1628 5351
proceeds from sale of own shares from employee beneﬁt trust 4 5
dividend paid to company’s shareholders  3171 2826
movement in amounts due tofrom group undertakings1  17104 5067
net cash used in financing activities 21809 13151
net decrease in cash and cash equivalents 11017 14813
cash and cash equivalents at 1 may  11751 26564
cash and cash equivalents at 30 april 8 734 11751
1 movement in amount due tofrom group undertakings is primarily due to cash transfers and group relief receipts from subsidiary undertakings
company cash flow statement  107
anite annual report and accounts 2012
financial statements
financial statements
1 basis of preparation and accounting policies
a basis of preparation
anite plc has presented separate ﬁnancial statements in accordance with ifrs as adopted by the eu as permitted by the companies act 2006
the company has taken advantage of the exemption in s408 of the companies act 2006 not to present its individual income statement and related notes when the 
consolidated income statement has been presented there are no other recognised gains or losses other than the proﬁt for the year
b accounting policies
the accounting policies as set out in note 2 to the consolidated ﬁnancial statements have been applied in the preparation of these company ﬁnancial statements
2 intangible assets
software licences 
£000
cost
at 1 may 2010 181
additions  53
at 30 april 2011 234
additions  40
disposals 55
at 30 april 2012 219
amortisation
at 1 may 2010 156
amortisation 39
at 30 april 2011 195
amortisation 31
disposals 55
at 30 april 2012 171
net book value at 30 april 2012 48
net book value at 30 april 2011 39
notes to the company accounts 108
anite annual report and accounts 2012
financial statements
notes to the company accounts continued
3 property plant and equipment
 plant ﬁxtures
 equipment and 
computers motor vehicles total 
£000 £000 £000
cost
at 1 may 2010 1079 1665 2744
additions 75 3 78
written off against provisions – 433 433
at 30 april 2011 1154 1235 2389
additions 78 – 78
disposals 634 94 728
at 30 april 2012 598 1141 1739
accumulated depreciation and impairment
at 1 may 2010 983 935 1918
charge for the year 69 289 358
at 30 april 2011 1052 1224 2276
charge for the year 61 11 72
disposals 634 94 728
at 30 april 2012 479 1141 1620
net book value at 30 april 2012 119 – 119
net book value at 30 april 2011 102 11 113
4 investments in subsidiaries
2012 2011
£000 £000
cost
at 1 may 196771 197001
additions 55000 –
adjustments under ifric 111 662 230
at 30 april 252433 196771
provisions for impairment
at 1 may 55079 55079
impairments 20000 –
at 30 april 75079 55079
net book value 177354 141692
1 this relates to capital contributions made by the company to its subsidiaries equal to the sharebased payments recognised by these subsidiaries in their accounts  109
financial statements
5 deferred tax assets
other
shortterm 
accelerated tax sharebased timing
depreciation payments differences total 
£000 £000 £000 £000
at 1 may 2010 209 530 – 739
debitcredit to income statement for the year 93 106 – 13
credit to equity for the year – 481 – 481
at 30 april 2011 116 1117 – 1233
debitcredit to income statement for the year 19 181 311 473
credit to equity for the year – 1321 – 1321
at 30 april 2012 97 2619 311 3027
there are no deferred liabilities that have been offset as permitted by ias 12
6 trade and other receivables
2012 2011
£000 £000
amounts falling due within one year
trade receivables 41 19
other receivables 22 38
prepayments 633 509
696 566
the directors consider that the carrying amount of trade and other receivables approximates their fair value
the trade receivables do not include any advances or retentions at 30 april 2012 and april 2011
7 amounts owed byto group undertakings
the directors consider that the carrying amount of amounts owed by and to group undertakings approximates their fair value the provision for impairment of amounts 
owed by group undertakings was £169m 2011 £169m see note 16h for further details 110
anite annual report and accounts 2012
financial statements
notes to the company accounts continued
8 cash and cash equivalents
2012 2011
£000 £000
cash at bank and in hand – 2632
overdrafts 7783 –
term and overnight deposits 8517 9119
734 11751
cash at bank and in hand was invested on a ﬂoating rate basis and was therefore subject to cash ﬂow interest risk the company has the legal right of set off for certain 
of its overdraft and cash balances under a master netting arrangement within its banking facilities
term and overnight deposits comprise money market deposits which attract interest rates based on market rates placed on overnight deposit 2011 ﬁxed for periods  
of up to six months the directors consider that the carrying amounts of cash and cash equivalents approximate to their fair values
for the purposes of the cash ﬂow statement cash and cash equivalents comprise the above amounts
the carrying value of the company’s cash and cash equivalents and overdrafts are denominated in the following currencies
2012 2011
£000 £000
euro 912 61
sterling 1646 11812
734 11751
9 trade and other payables
2012 2011
£000 £000
trade creditors 601 383
other taxes and social security 111 134
other creditors 142 126
accruals 4547 3040
5401 3683
trade and other payables principally comprise trade purchases and other operating costs
the directors consider that the carrying amount of trade payables approximates to their fair value
10 provisions
property provision 
£000
at 1 may 2011 2749
release of provision credited to income statement 23
utilised during the year 1577
unwinding of discount 35
at 30 april 2012 1184
the provision is held in relation to the empty space within the group’s corporate ofﬁce in slough resulting from the disposal of anite public sector in october 2008 and 
in respect of dilapidation obligations under an operating property lease  111
financial statements
11 share capital
the movements on share capital are disclosed in note 27 to the consolidated ﬁnancial statements
12 sharebased payments
the company operates several share option plans including saye and other sharebased schemes the terms are disclosed in note 10 to the consolidated 
ﬁnancial statements
details of the share options outstanding during the year are as follows
2012 2012 2011 2011
saye other share based saye other share based
 weighted weighted weighted weighted 
number average number average number average number average 
of share exercise of share exercise of share exercise of share exercise 
options price options price options price options price
outstanding at 1 may 318128  23p 13232195  4p 379111 23p 10032095 5p
granted during the year 96033  59p 1270064  – – – 6496925 –
exercised during the year – – 284611 8p 13348 23p 86956 35p
lapsed during the year – – 1606961 – 47635 23p 3209869 –
outstanding at 30 april 414161 28p 12610687 4p 318128 23p 13232195 4p
exercisable at 30 april – 1574265 – 1299367
weighted average fair value 
of awards granted during year 25p 64p – 29p
weighted average share price  
on date of exercise – 84p 53p 66p
weighted average remaining  
contractual life years 22 60 27 67
exercise price 225p–591p 00p–595p 225p 00p595p
 saye  other share based
 weighted weighted 
outstanding average weighted outstanding average weighted 
options at remaining average options at remaining average 
30 april contractual exercise 30 april contractual exercise 
2012 life price 2012 life price
exercise price range
0p – – – 11385787  65 –
1p–40p 318128 17  23p  867488  11  34p 
41p–806p 96033 39  59p  357412  20  52p 
414161 22  28p  12610687  60 4p
the fair values for the above options were calculated using the blackscholes and stochastic option pricing models the inputs into these models are disclosed in note 10 
to the consolidated ﬁnancial statements 112
anite annual report and accounts 2012
financial statements
notes to the company accounts continued
13 commitments
a capital commitments
there were no capital commitments at 30 april 2012 and 2011
b operating lease arrangements
2012 2011
£000 £000
lease payments under operating leases recognised as an expense in the year 905 905
the company has total outstanding commitments under noncancellable operating leases which fall due as follows
land and buildings
2012 2011
£000 £000
leases expiring in one year 460 905
leases expiring in two to ﬁve years inclusive – 462
460 1367
14 contingent liabilities
the company has contingent liabilities which have not been provided for in the accounts in respect of performance guarantees given by the company in respect 
of subsidiary contracts with third parties the nature of these performance guarantees is such that they would only come into effect in the case of a major default 
of a subsidiary in performing these contracts it is not practical to estimate the amount of the liability
anite plc is a guarantor of the overdraft and syndicated facilities of the group totalling £25m 2011 £35m of which £nil 2011 £10m was drawn down at 30 april 2012 
details of the borrowings are set out in note 21 of the consolidated ﬁnancial statements
15 related party transactions
a subsidiaries
the company has outstanding balances with its wholly owned subsidiaries the amounts owed by and owed to subsidiaries are disclosed in the balance sheet these loans 
are unsecured and interest is calculated based on market rates
during the year the company entered into the following transactions with its subsidiaries
2012 2011
£000 £000
management fees receivable 1900 1621
interest payable 857 211
dividends received 31515 –
other costs recharged to subsidiaries 29017 6303
net cash transfersintercompany settlement to subsidiaries 27137 244
b key management personnel
the key management personnel are deemed to be the members of the board of directors of the company which has responsibility for planning directing and controlling 
the activities of the company transactions with key management personnel are disclosed in the report of the directors on page 37   113
financial statements
16 financial risk management
a capital risk management
the company manages its capital structure to ensure it is operating as a going concern and maximising the returns of the shareholders through the optimisation  
of its equity balance
the company’s capital structure is as follows
2012 2011
£000 £000
cash and cash equivalents 734 11751
amounts owed to group undertakings 65874 58655
total equity 147205 135818
capital employed 212345 182722
b significant accounting policies
details of the signiﬁcant accounting policies and methods adopted the basis of measurement and the basis on which income and expenses are recognised in respect 
of each class of ﬁnancial asset liability and equity are disclosed in note 2 to the consolidated ﬁnancial statements
c categories of financial instruments
the following assets and liabilities at carrying values meet the deﬁnition of ﬁnancial instruments and are classiﬁed according to the following categories
2012 2011
note £000 £000
loans and receivables
cash and cash equivalents 8 734 11751
trade receivables 6 41 19
amounts owed by group undertakings  35289 48339
financial assets 36064 60109
amortised cost
trade creditors 9 601 383
amounts owed to group undertakings 65874 58655
financial liabilities 66475 59038
d financial risk management
the company’s ﬁnancial assets and liabilities mainly comprise cash and liquid resources and various items such as trade receivables and payables that arise directly 
from its operations
the main risks arising from the company’s ﬁnancial instruments are market risk primarily exposure to changes in the interest rate and foreign currency risks liquidity 
risk and credit risk the board reviews and agrees policies for managing each of these risks which are summarised below 114
anite annual report and accounts 2012
financial statements
notes to the company accounts continued
16 financial risk management continued
e market risk – interest rate
the group ﬁnances its operations and acquisitions through a mixture of reserves bank borrowings and new equity and this policy is reviewed from time to time 
the group borrows in the desired currencies at ﬂoating rates of interest and manages the interest rate risk by selectively using interest rate swaps any surplus cash 
is converted into sterling and is invested in shortterm money market and bank deposits at the prevailing rates of interest in order to achieve the market rate of return 
the ﬁnancial assets and liabilities that are interest bearing and expose the company to interest rate risk are as follows
i cash and cash equivalents note 8 the weighted average ﬂoating interest rate for these ﬁnancial assets which were based on sterling market rates ﬁxed for 
periods up to three months was 105 2011 105
ii interestbearing intercompany debtors and creditors the weighted average of these interest rates net is 204 2011 183 these rates are linked 
to libor plus margin the margin is 085 as stipulated in the loan agreement
interest rate sensitivity analysis
the sensitivity analyses below have been determined based on the exposure to interest rates for both ﬁnancial assets and liabilities both including derivative 
instruments as listed above at balance sheet date
the table below demonstrates the sensitivity to a 05 change in interest rates with all other variables held constant applied to the major currencies of net variable rate 
assetsliabilities 05 is the sensitivity rate that represents management’s assessment of the reasonably possible change in interest rates in the next 12 months
£denominated €denominated
2012 2011 2012 2011
£000 £000 £000 £000
cash and cash equivalents 1646 11812 912 61
amount due tofrom group undertakings 18387 42055 48972 52371
net variable rate assetsliabilities 20033 53867 49884 52432
£ interest rate € interest rate
2012 2011 2012 2011
£000 £000 £000 £000
profit before tax – gainloss
05 change in interest rate 100 269 249 262
05 change in interest rate 100 269 249 262
the fair value of ﬁnancial assets and liabilities is not materially different from the book value recorded at 30 april 2012 and 2011  115
financial statements
16 financial risk management continued
f market risk – foreign currency
foreign currency sensitivity analysis
the table below shows the company’s currency exposures in the proﬁt and loss account arising from the monetary assets and monetary liabilities of the company that 
are not denominated in sterling its functional currency the sensitivity analyses below are based on a 10 appreciationdepreciation of euro against sterling applied 
to the net monetary assets or liabilities denominated in this currency at reporting date the sensitivity analysis includes amounts owed by the group undertakings
€denominated
2012 2011
£000 £000
monetary assets 912 61
monetary liabilities 48972 52371
net monetary liabilities 49884 52432
€ currency impact
2012 2011
£000 £000
profit before tax – gainloss
10 depreciation 4548 4755
10 appreciation 5563 5808
g other price risks
the company is not exposed to other price risks apart from interest rate and foreign exchange risk
h credit risk
credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a ﬁnancial loss to the company
the company’s maximum exposure to credit risk is as follows
2012 2011
note £000 £000
cash and cash equivalents 8 734 11751
trade receivables 6 41 19
amounts owed by group undertakings  35289 48339
 36064 60109
the credit risk on cash and cash equivalents is limited because the counterparties to these assets are highly rated ﬁnancial institutions in addition the company has 
further mitigated this risk by spreading cash deposits over a range of ﬁnancial institutions with no more than £10m being deposited with any one counterparty
the amounts presented in the table above are net of allowances for doubtful recoverability and foreseeable losses 116
anite annual report and accounts 2012
financial statements
notes to the company accounts continued
16 financial risk management continued
h credit risk continued
the table below shows the movements in the provision for impairment of amounts owed by group undertakings
amounts owed by 
group undertakings
2012 2011
£000 £000
at 1 may 16939 17017
charge for the year 118 107
release in the year 131 185
at 30 april 16926 16939
the ageing of the individually impaired amounts owed by group undertakings is as follows
amounts owed by 
group undertakings
2012 2011
£000 £000
more than 12 months overdue 16926 16939
the ageing of the trade receivables and amounts owed by group undertakings excluding those that have been impaired is as follows
amounts owed by 
trade receivables group undertakings
2012 2011 2012 2011
£000 £000 £000 £000
not past due 30 3 3 193
past due
less than one month overdue – – 361 868
one to two months overdue 11 16 11 33
two to three months overdue – – 11 11
more than three months overdue – – 34903 47234
11 16 35286 48146
balance at 30 april 41 19 35289 48339
the credit quality of those debts owed by group undertakings that are past due but not impaired has been assessed at the reporting date and has not signiﬁcantly 
changed there is no reason why these amounts will not be recovered in due course  117
financial statements
16 financial risk management continued
i liquidity risk
the company’s objective is to maintain a balance and continuity of funding and ﬂexibility through the use of bank overdrafts and bank syndicated facilities 
working capital requirements are mainly funded through dividend income from its subsidiary undertakings
the group’s uk overdraft facility was renewed during the year at £5m net 2011 £5m net the amount drawn down under these facilities at 30 april 2012 and 2011 
was £nil
the company is a guarantor of the group’s overdraft and syndicated revolving credit facilities of £25m 2011 £35m of which £25m 2011 £25m was undrawn at 
30 april 2012 the company is also a party to an unlimited omnibus setoff arrangement to secure the liability of the company and certain group companies with 
lloyds tsb bank plc
maturity profile
the table below summarises the maturity proﬁle of the group’s undiscounted cash ﬂows of the ﬁnancial liabilities which approximates their fair value and the earliest 
date on which the group is required to pay
less than one year
2012 2011
£000 £000
trade payables 601 383
amounts owed to group undertakings 65874 58655
66475 59038 118
anite annual report and accounts 2012
other information
shareholder enquiries
equiniti limited maintains the company’s register of members if any of your details change or if you have any queries regarding your shareholding please contact 
the registrars at
equiniti limited 
aspect house 
spencer road 
lancing
west sussex bn99 6da 
united kingdom
t 0871 384 2181 international 44 121 415 7047
calls to this number cost 8p per minute from a bt landline other providers’ costs may vary lines open 830am to 530pm monday to friday
textphone for shareholders with hearing difﬁculties 0871 384 2255 international 44 121 415 7028
equiniti also offers a range of shareholder information online at wwwshareviewcouk
share dealing service
shareview dealing a telephone and internet share dealing service is provided through equiniti and is a convenient way to sell your anite plc shares or add to your holding 
commission is 15 of the value of the transaction on the ﬁrst £50000 with a minimum charge of £45 and 02 thereafter for telephone dealing and 15 with 
a minimum of £40 for internet dealing for telephone dealing call 08456 037 037 between 800am and 430pm monday to friday and for internet dealing log on  
to wwwshareviewcoukdealing you will need your shareholder reference number as shown on your share certiﬁcate if you wish to sell or your debit card number  
if you wish to buy
anite corporate individual savings account isa
a stocks and shares isa is now available to anite plc shareholders through equiniti financial services limited for further details please go to wwwshareviewcoukdealing 
or contact customer services on 0845 300 0430 international 44 121 415 0105
multiple accounts on the shareholder register
if you have received two or more copies of this document it may be because there is more than one account in your name on the shareholder register this may be caused 
by either your name or address appearing on each account in a slightly different way for security reasons the registrars will not amalgamate the accounts without your 
written consent so if you would like any multiple accounts combined into one account please write to equiniti at the above address
sharegift
sharegift is a charity share donation scheme for shareholders administered by the orr mackintosh foundation it is especially for those who may wish to dispose of a 
small parcel of shares the value of which makes it uneconomic to sell on a commission basis further information can be obtained at wwwsharegiftorg or from equiniti
financial calendar
annual general meeting 13 september 2012
halfyear end  31 october 2012
preliminary announcement of halfyear 201213 results  december 2012
financial year end 30 april 2013
preliminary announcement of 201213 results  july 2013
dividend payment timetable
declared at annual general meeting  13 september 2012
exdividend date 26 september 2012
record date 28 september 2012
payment date 23 october 2012
shareholder information  119
anite annual report and accounts 2012
other information
other information
2g second generation of mobile phone technologies including gsm and cdma 
introduced data services for mobiles eg sms text messaging
3g third generation of mobile phone technologies enabled highspeed 
downlinkuplink packet access hsdpahsupa
3gpp third generation partnership project – collaboration of groups of 
telecommunications associations to make globally applicable mobile phone 
system speciﬁcations
4g fourth generation system expected to provide a comprehensive and secure 
all ipbased solution whereby facilities such as ip telephony ultrabroadband 
internet access gaming services and streamed multimedia may be provided 
to users
bric the group of emerging economies brazil russia india and china known 
as the bric countries
capital expenditure includes the aggregate of capitalised property plant 
and equipment additions and capitalised software licences
cdma code division multiple access technology
conformance testing ct tests the individual protocol stack layers in 
a wireless device to ensure compliance with the latest industry standards
development testing dt supports all phases of wireless device 
development from presilicon protocol module development through to 
systems integration and veriﬁcation
drive test a typical means of collecting information on cellular networks’ 
coverage and quality a car containing cellular network measurement tools 
is driven along a predeﬁned route
dynamic packaging enables customers to buy their own ﬂights and 
accommodation rather than buying predeﬁned packages which are priced 
according to current availability
ebitda earnings before interest tax depreciation and amortisation
emea europe middle east and africa
erp enterprise resource planning – a computerbased system used for managing 
internal and external resources
evdo evolution dataoptimised code division multiple access cdma cellular 
technology standardised by 3rd generation partnership project 2 3gpp2
exabyte a unit of computer memory or data storage capacity equal to 
10
18
 bytes
fsr1 a modular digital scanning receiver that provides highspeed rf 
measurements of wireless networks across multiple bands and technologies
gcf global certiﬁcation forum – a regulatory body to give operators conﬁdence 
in the interworking of new mobile terminals
gigabyte a unit of computer memory or data storage capacity equal to 10
9
bytes
gsm global system for mobile communications – the dominant global 2g 
wireless telephony standard
hosted serviced computer facility within which companies can house their 
servers so that they do not need to construct their own secure airconditioned 
computer room within their own premises
hspa high speed packet access plus – 3g evolution enabling mobile broadband
interoperability testing iot phase associated with testing to ensure 
suitable interworking between speciﬁc wireless devices and mobile networks
lte long term evolution is the latest standard in mobile air interface technology 
it is a project of the third generation partnership project 3gpp
lteadvanced ltea long term evolution advanced – lte 4g evolution 
enabling even higher data rates
lte fdd frequency division duplexing lte utilising paired spectrum
lte tdd time division duplexing lte – variant that will be adopted in china
m2m machinetomachine refers to technologies that allow both wireless and 
wired systems to communicate autonomously without human intervention
megabyte a unit of computer memory or data storage capacity equal to 10
6
bytes
net cash cash and cash equivalents less bank borrowings
postprocessing tools tools for analysing collected network measurement 
data ofﬂine typically involves simultaneous analysis of several ﬁles and 
calculation of statistics from measurement ﬁles
smartphone mobile phone which incorporates advanced capabilities 
including email and internet access
spectrum governmentcontrolled airwaves that companies license to transmit 
wireless signals on certain frequency allocations
test script a deﬁned procedure used to verify device functionality
voip voice over internet protocol the phone service over the internet
volte voice over lte is an ims ip multimedia subsystembased speciﬁcation 
enabling voice to be carried through an ip cellular system
wcdma wideband code division multiple access – the dominant global 3g 
wireless telephony standard
glossary of terms 120
anite annual report and accounts 2012
other information
financial advisers
jefferies hoare govett
vintners place 
68 upper thames street
london ec4v 3bj
financial pr advisers
mhp communications
60 great portland street
london w1w 7rt
auditors
deloitte llp
chartered accountants
london
stockbrokers
jefferies hoare govett
vintners place 
68 upper thames street
london ec4v 3bj
canaccord genuity limited
88 wood street
london ec2v 7qr
bankers
lloyds bank
25 gresham street
london ec2v 7hn
registrars
equiniti limited
aspect house 
spencer road 
lancing
west sussex bn99 6da
solicitors
simmons  simmons
city point 
one ropemaker street
london ec2y 9ss
registered office
anite plc
353 buckingham avenue
slough
berkshire sl1 4pf
united kingdom
t 44 0 1753 804000 
f 44 0 1753 804497
company number
1798114
handset testing head office
anite telecoms ltd
ancells business park 
harvest crescent
fleet
hampshire gu51 2uz
united kingdom
t 44 0 1252 775200 
f 44 0 1252 775299
network testing head office
anite finland ltd
kiviharjunlenkki 1 d 
90220 oulu
finland
t 358 50 395 7700 
t 358 8 551 6182
travel head office
anite travel ltd
353 buckingham avenue
slough
berkshire sl1 4pf
united kingdom
t 44 0 1753 804000 
f 44 0 1753 804497
advisers
offices designed and produced by fti consulting wwwfticonsultingcom
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of the forest stewardship council fsc it is manufactured at a mill that is certiﬁed to iso14001 and emas environmental standards the mill uses pulps that are 
totally chlorine free tcf and some pulp is bleached using an elemental chlorine free ecf process the inks in printing this report are all vegetablebased
printed by pureprint iso14001 fsc certiﬁed and carbon neutral anite plc
353 buckingham avenue
slough
berkshire
sl1 4pf
united kingdom
t 44 0 1753 804000
f 44 0 1753 804497
wwwanitecom


Summary:
 anite annual report and accounts 2012
overview
04
introduction
i am pleased to report that anite had an 
exceptional year in terms of its ﬁnancial 
results which comfortably exceeded the 
board’s expectations while the highlight of 
the year was handset testing’s particularly 
strong performance driven mainly by 
a signiﬁcant increase in revenue for lte 4g 
products each of our three businesses 
handset testing network testing and travel 
made signiﬁcant operational progress 
strategy and progress
we continue to make good progress with our 
strategy to position anite as a global leader 
in wireless test software and to take 
advantage of the opportunities that will 
emerge from the development and rollout 
of lte 4g technology 
the board believes that our wireless division 
operates in a longterm growth market 
which has high barriers to entry and relatively 
few major competitors this enables it to 
generate good proﬁt margins and returns 
on investments wireless contributed an 
increased proportion of total anite revenue 
– 84 2011 79 
our strategy for travel is to increase its 
longterm value as it changes its business 
model its com product is the only proven 
largescale reservation system on the market 
today and is at the beginning of a potential 
20year product life cycle it sits at the very 
heart of our customers’ businesses and offers 
them greater efﬁciency and reduced costs 
the addition in recent years of tui central 
europe and uk and thomas cook uk to 
travel’s expanding customer base represented 
signiﬁcant landmarks in strengthening and 
improving its market position and in building 
longterm revenue visibility 
in both divisions wireless and travel the 
board anticipates that the majority of growth 
will be organic it will come from underlying 
growth in their respective markets 
investment in their products to win market 
share and lengthy and cumulative product 
life cycles in addition the board is 
committed to maintaining market leadership 
by continuing to invest in rd
finally it is the board’s intention that we 
should maintain a strong ﬁnancial position 
to provide ﬁnancial ﬂexibility through 
a combination of retaining a net cash  
position while having access to appropriate 
bank facilities through a new ﬁveyear 
£20m revolving credit facility signed in 
october 2011
results summary 
the group’s results were well ahead of the 
previous year and both divisions reported 
strong underlying proﬁtability our wireless 
division as a whole reported an adjusted 
operating margin of 26 2011 22 while 
our travel division reported 23 2011 21 
overall group adjusted operating proﬁt was 
up 64 to £288m 2011 £176m on 
revenue up 31 to £1225m 2011 £937m 
adjusted diluted earnings per share were  
up 76 to 67p 2011 38p 
robust cash generation enabled us to 
maintain a strong ﬁnancial position at the  
year end net cash as at 30 april 2012 was 
£169m april 2011 £277m the reported 
anite reported strong results and made good progress  
in all three businesses in the year
clay brendish
chairman
chairman’s statement
466
340
290
211
322
230
596
260
794
2012 2011
  handset testing      network testing      travel
2010
1520
1166
823
order intake by business
£m  05
overview
we remain committed to ensuring we 
continue to improve our governance and 
processes and details on this are set out in 
the corporate governance report on pages  
40 to 45 the audit committee report 
on pages 56 and 57 and the remuneration 
committee report on pages 46 to 55
summary and outlook 
anite reported strong results and made good 
progress in all three businesses in the year 
in particular the lte 4g opportunity has 
added an additional layer to our expertise 
we are now a leading force in two signiﬁcant 
handset testing submarkets – 2g3g and 
lte 4g as a result handset testing is in a 
better position to take advantage of larger 
markets than in the past and is capable of 
achieving doubledigit revenue growth for 
the immediate future
based on the opportunities available to 
each of our businesses anite is well placed  
to deliver sustainable organic growth and 
increased shareholder value
clay brendish
chairman
2 july 2012
level of net cash followed the settlement on 
31 october 2011 of the £216m swap liability 
dividend
in recognition of the signiﬁcant growth in 
earnings per share over the past two years 
the board is recommending a signiﬁcantly 
increased ﬁnal dividend of 1125p per share 
an increase of 53 on the previous year 
2011 0735p per share this will result  
in a total dividend for the year of 150p per 
share a 43 increase on the previous year’s 
total dividend 2011 105p per share it is 
proposed that the ﬁnal dividend be paid on 
23 october 2012 to shareholders on the 
register at 28 september 2012
overall the board’s intention is to maintain 
a progressive dividend policy broadly in line 
with earnings growth and to retain strong 
dividend cover 
people
on behalf of the board i recognise that 
anite’s success in recent years has been  
built on the deep industry expertise of our 
committed and hardworking staff it is their 
knowhow and experience that keeps us at 
the forefront of our industries 
governance 
the board recognises the importance that 
good corporate governance and the highest 
standards of professional ethics have in 
achieving its goal of delivering shareholder 
value i am satisﬁed by the breadth and 
range of skills of the individual directors and 
am pleased that the board performance 
evaluation we undertook this year conﬁrmed 
that the board operates effectively
201
200
230
200
358
241
496
260
764
2012 2011
  handset testing      network testing      travel
2010
1225
937
788
revenue by business
£m
46
42
56
45
35
64
100
53
215
2012 2011
  handset testing      network testing      travel
2010
288
includes group costs 
of £26 million
176 
includes group costs 
of £30 million
119
includes group costs 
of £17 million
adjusted operating profit by business
£m