annual report and accounts 2004 highlights of 2004    1
chairman’s statement    2
chief executive’s report    4
board of directors    6
directors’ report    8
corporate governance report    11
statement of directors’ responsibilities    15
independent auditors’ report    16
consolidated profit and loss account    18
consolidated balance sheet    19
company balance sheet    20
consolidated cash flow statement    21
accounting policies    22
notes to the financial statements    24
notice of annual general meeting    34
company information    36
contents  the claims people group plc
49 southwark street
london se1 1ru
telephone 020 7357 6636
wwwtheclaimspeoplecom annual report and accounts 2004 1
● turnover for the year has increased by
36 from £197m to £267m
● profit for the year has increased by
106 from £135313 to £278163
● earnings per share up by 75
● integration and rationalisation
of acquired business
● balance sheet strengthened
● client base increased by 20
the claims people group plc provides claims handling
consultancy and website facilities to the insurance industry
the group employs leading edge technology with a
unique webbased claims notification and monitoring system
and utilises a low cost centralised operating model
■ turnover
■ pretax
2500000
2000000
1500000
1000000
500000
0
500000
1000000
1500000
2000
turnover v pretax 20002004 £
highlights of 2004
2001 2002 2003 2004 i am pleased to announce our results for the financial 
year which show further improvement in performance
turnover for 2004 has increased by 36 to £267 million
2003 £197 million and profit after tax has been
improved to £278163 2003 £135313  
our strategy of providing claims handling consultancy and
website facilities to the insurance industry continues to be
well received combined with our use of leading edge
technology with a unique webbased claims notification
and monitoring system
overall we had a very busy year with a particularly
buoyant summer period when claims volumes were 
significantly higher than the corresponding period in 2003
we continued to add to our client list and most significantly secured a two year primary
adjuster contract with rubicon insurance services in addition to this 2004 saw our first
consultancy income stream for providing client support services and we are confident
that this could well become a more regular contributor to our operating revenues  
costs and cashflow continue to be monitored very carefully and additional margin gains
are achievable as our level of activity increases  
the current financial year commencing 1st january has seen increased volumes from
the flood conditions in that month and the receipt of a number of large commercial
claims that will enhance 2005 income
chairman’s statement
annual report and accounts 2004 2 we continue to invest in our it infrastructure and since the year end completed the
latest phase of our claims system enhancement which was funded by a issue of shares
to the innovation group plc
2004 was a year which saw a concentration on organic growth but we are seeking to
achieve further earnings enhancing acquisitions in 2005 and we are actively pursuing
opportunities in this regard
finally i wish to thank our loyal employees and our shareholders for their support  
john french
chairman
8 march 2005
annual report and accounts 2004 3 overall 2004 has been a gratifying year for the claims
people during which the company’s progress was
undoubtedly maintained
operations 
the company again experienced growth and claims
people were particularly delighted as reported in the
chairman’s statement to add rubicon insurance services
and other clients to our client base
during the early part of 2004 we were joined by an
executive team from concept claims management which
made a valuable contribution to our resources later in the
year we were also pleased to extend our claims analyst
operations into the “implant” consultancy arena and we hope to continue this progress
in the future
from a pure claims perspective the loss adjusting business benefited from a significant
increase in volumes during the late summer period and despite further consolidation in
both the insurance and broking sectors demand for claims adjustment services
remained strong whilst the bulk of our business was of a volume personal lines nature
we were also gratified to be instructed on a number of highvalue corporate company
claims demonstrating the breadth of expertise we possess the winter period of
20042005 was also busy from an operational standpoint and as we emerge from this
period we shall be intensifying our marketing activities 
industry perspective
as i commented in the 2003 report the claims industry has continued to experience
rapid change  
throughout the year a number of “virtual insurers” emerged as increasingly powerful
forces in the market and it is to be anticipated that this trend will continue such
companies generally provide backoffice services and represent a potentially new 
market for claims people
chief executive’s report
annual report and accounts 2004 4 the verify motor inspection service remained well supported throughout 2004 and the
company remains convinced that further opportunities exist for this product
one material consequence of the changing market conditions is the scale of opportunities
for acquisition that now exist claims people intend to take advantage of any appropriate
opportunities during 2005 and whilst the company will not pursue an indiscriminate
acquisition policy careful examination of potential prospects should enable us to identify
appropriate companies that would benefit from the application of the claims people’s
business model  
conclusion
once again we can report that solid progress is being achieved we are continuing to
enhance our it capabilities and the board intends to ensure that the company’s
competitive edge is maintained as previously stated we are actively seeking to explore
merger and acquisition possibilities and we are satisfied that the year ahead contains
many opportunities for claims people
barry whyte
chief executive
8 march 2005
annual report and accounts 2004 5 f john french 
nonexecutive chairman
duties include investor relations chairmanship of the remuneration
committee and membership of the audit committee
john french has had extensive experience in media and marketing and
served as chairman and chief executive of osprey communications
plc and was actively involved in the redevelopment of cosalt plc a
fully listed company more recently he was a nonexecutive director
to former aim listed pycraft  arnold holdings plc and acted as advisor to private 
commercial finance plc on its admission to aim he is also chairman of the aim listed
croma group plc and  air music  media group plc
graham cole 
nonexecutive director
chairman of the audit committee and member of the remuneration
committee
graham a chartered accountant was formerly a partner in coopers
 lybrand chartered accountants and a director of beeson gregory
group plc he currently specialises in advising growth companies
and acts as nonexecutive director for a number of listed companies
graham was the recipient in 2002 of the life time achievement award for services to
the midcap plc market
board of directors
annual report and accounts 2004 6 barry whyte acii fcila 
chief executive
responsible for the overall strategic development of the group 
and is actively involved in the marketing of its services
barry has an extensive insurance background and is a 
chartered loss adjuster he was formerly managing director 
of miller knight 
peter morgan fca 
finance director
responsible for the financial management of the group he is a member
of the remuneration committee and adviser to the audit committee
previously manager with hays allan chartered accountants and
subsequently finance director of aimlisted pycraft  arnold peter
is also finance director of woodstock insurance brokers limited
david croston acii fcila 
operations director
prime duties encompass the operation of the loss adjusting and
claims management sectors of the business
a chartered loss adjuster and previously operations director of
miller pycraft responsible for the south west and central region
annual report and accounts 2004 7 the directors submit their report and the audited financial statements of the claims
people group plc and its subsidiaries for the year ended 31 december 2004
principal activity
the group provides claims handling consultancy and website facilities to the insurance
industry
review of the year
a detailed review of the group’s activities the development of its business and an indication
of likely future developments may be found in the chairman’s statement on page 2
results and dividends
the profit of the group for the year after taxation was £278163 2003 £135313 
the directors do not recommend the payment of a dividend
directors
the directors who have held office during the period were as follows
executive nonexecutive
barry whyte john french
peter morgan graham cole
david croston
directors’ interests
the directors in office at 31 december 2004 had the following beneficial interest in the
ordinary shares of the company
ordinary shares of 15p each
31 december 2004 31 december 2003
barry whyte 4116681 4116681
peter morgan 2798318 2798318
david croston 3281681 3281681
john french 48000 48000
graham cole 240000 240000
there were no changes to the above shareholdings between the year end and the date
of this report
directors’ report
for the year ended 31 december 2004
annual report and accounts 2004 8 the company operates an executive share option scheme under the scheme each
of barry whyte peter morgan and david croston held options over 1250000 ordinary
shares of 15p each at 31 december 2003 and 31 december 2004 in addition each of
barry whyte peter morgan and david croston held options at 31 december 2003 and
31 december 2004 over such number of shares which equals the percentage set out
below of the issued share capital of the company on the date on which the option is
exercised minus 1250000 ordinary shares of 15p each
barry whyte 64
peter morgan 432
david croston 528
all the above options have an exercise price of 8p per share
biographical details
biographical details of the directors can be found on pages 6  7
substantial shareholdings
apart from the interests of the directors referred to above the company has received
the following notifications of holdings of more than 3 in the ordinary share capital of
the company as at the date of this report
isis equity partners plc 14103500
firgrove investments limited 7499994
barclayshare nominees limited 3331817
td waterhouse nominees europe limited 3189397
post balance sheet events
as detailed in note 25 on 6 january 2005 the company issued 2937500 ordinary
shares of 15p each for 3p per share in satisfaction of an outstanding creditor
international accounting standards “ias”
2004 will be the last year for which the financial statements are prepared on the basis of uk
generally accepted accounting principles the board has agreed to adopt ias with effect
from 1 january 2005 although it is not required to do so until 1 january 2007 the directors
do not consider the adoption of ias will have a material impact on the financial statements
payment policy
the group applies a policy of agreeing payment terms with each of their main suppliers
and aims to abide by these terms subject to satisfactory performance by suppliers
creditor days at 31 december 2004 were 34 days 31 december 2003 20 days
annual report and accounts 2004 9 auditors
those directors who comprise the audit committee review the terms of reference for 
the auditors and obtain written confirmation that the firm has complied with its ethical
guidance on ensuring its independence saffery champness provide audit and
accountancy services to the company in connection with its annual audit as well 
as corporation tax compliance services the level of fees charged is reviewed by the
board to ensure they remain competitive and to ensure no conflicts of interest arise 
a resolution to reappoint saffery champness as auditors to the company will be put to
the members at the annual general meeting
by order of the board
p m morgan
secretary
8 march 2005
directors’ report continued
for the year ended 31 december 2004
annual report and accounts 2004 10 financial aspects of corporate governance
the company is committed to achieving high standards of corporate governance 
the company aims to comply with the combined code “the code” which is appended
to the listing rules of the uk listing authority and has adopted a framework for corporate
governance which it believes is suitable for a company of its size
the board is accountable to shareholders for the governance of the company’s affairs
the directors have reviewed the principles outlined in the code and believe that insofar
as they are relevant to a company of its size they have complied with the provisions of
the code
directors’ statement of compliance with the revised combined
code on corporate governance
in july 2003 a revised combined code on corporate governance the revised code
was published by the financial reporting council which came into effect for accounting
periods commencing on or after 1 november 2003 the directors have reviewed the
detailed principles and recommendations outlined in the revised code and believe that
to the extent that they are relevant to the company’s business they have complied with
the provisions of the code during the year ended 31 december 2004 and that the
company’s current practice is in all material respects consistent with the principles of
the revised code
the board also confirms that to the best of its knowledge and understanding
procedures were in place to meet the requirements of the revised code relating to
internal controls throughout the year under review this statement describes how the
principles of the revised code have been applied in the affairs of the company
the board
the board currently consists of five members two of whom are nonexecutive
directors given the size of the board it is not considered appropriate to have a 
senior independent director
the board met on eight occasions throughout the year and all directors were present
with the exception of mr g cole who was unable to attend one meeting all major
decisions as to the direction and control of the company are taken by the full board 
no one director has unfettered powers of decision the group’s day to day operations
are managed by the executive directors all directors have access to the company
secretary and any director needing independent professional advice in the furtherance
of his duties may obtain this advice at the expense of the company the executive
directors have a oneyear rolling service agreement with the company
corporate governance report
for the year ended 31 december 2004
annual report and accounts 2004 11 the revised code requires that this report should identify each nonexecutive director
the board considers to be independent in character and judgement and whether there
are relationships or circumstances which are likely to affect or could appear to affect
the director’s judgement stating its reasons if it determines that a director is independent
notwithstanding the existence of relationships or circumstances which may appear to be
relevant to its determination in the board’s opinion both messrs french and cole are
considered to be independent in both character and judgement accordingly two of the
five board members are independent
under the articles of association all directors are subject to periodic retirement and 
reelection by shareholders in order to comply with the revised code and the articles 
of association the directors have adopted a policy providing for all directors to submit
themselves for reelection at least every three years
accordingly mr cole shall retire and being eligible shall offer himself for reelection 
a resolution to reelect mr cole is contained with the notice of the annual general
meeting on page 34
mr cole has actively contributed in meetings throughout the year following a formal
performance evaluation the other board members recommend that shareholders vote
for the reelection of mr cole as they believe that his skills knowledge and overall
performance is of continued benefit to the company  
corporate governance committees
the board has established two committees comprising the nonexecutive directors
and one executive director the members are
audit remuneration
john french john french
graham cole graham cole
peter morgan
peter morgan is invited to attend the audit committee meetings
the board does not consider it necessary to have a nomination committee
the audit committee
the audit committee which is chaired by mr cole met twice last year to review the
audit process and the published financial information the effectiveness of external audit
and internal controls
the primary responsibilities of the audit committee are to review the effectiveness of 
the internal control environment of the company and to monitor adherence to best
practice in corporate governance to make recommendations to the board in relation to
the reappointment of the auditors and to approve their remuneration and terms of
engagement and to review and monitor the auditors’ independence and objectivity and
the effectiveness of the audit process and provide a forum through which the company’s
auditors report to the board the audit committee also has responsibility for monitoring
the integrity of the financial statements and accounting policies of the company
corporate governance report continued
for the year ended 31 december 2004
annual report and accounts 2004 12 committee members consider that individually and collectively they are appropriately
experienced to fulfil the role required
saffery champness the company’s auditors attend the meeting of the audit
committee to approve the financial statements and annual report and have direct
access to committee members the chairman of the audit committee will be present at
the annual general meeting to deal with any questions relating to the accounts
in addition the audit committee has considered the requirement for an internal audit
function and has concluded that given the current state of operations no internal audit
department is required
remuneration committee
the terms of reference of the remuneration committee which is chaired by mr french are
● recommend to the board a framework for rewarding senior management including
executive directors bearing in mind the need to attract and retain individuals of the
highest calibre and with the appropriate experience to make a significant contribution
to the group and
● ensure that the elements of the remuneration package are competitive and help in
underpinning the performancedriven culture of the group
the remuneration committee did not meet in the year although the remuneration of the
executive directors has increased following an improvement in the company’s trading
it should be noted however that the remuneration paid is in line with that outlined in the
company’s aim admission document
internal control
the directors acknowledge their responsibility for the group’s system of internal control
and for reviewing its effectiveness this is an ongoing process designed to ensure
adherence to the group’s policies whilst safeguarding the assets of the group in addition
to ensuring the management of the risks faced by the group this process has been in
place throughout the period and up to the date of signing this report responsibility for
implementing a system of internal controls is delegated to the finance director
an ongoing process in accordance with the turnbull committee on internal control is
established for identifying evaluating and managing risks faced by the group a formal
risk identification and analysis was conducted in the current financial year
the risk management process and systems of internal control are designed to manage
rather than eliminate the risk of failure to achieve the group’s objectives it should be
recognised that such systems can only provide reasonable not absolute assurance
against material misstatement or loss
in accordance with guidance issued to directors of listed companies the directors have
carried out a review of the effectiveness of internal controls as they have operated
during the year
annual report and accounts 2004 13 internal control assessment process
risk assessment and the review of internal controls are undertaken by the board in the
context of the group’s overall strategy the review covers the key business operational
compliance and financial risks facing the group in arriving at its judgement of what risks
the group faces the board has considered the group’s operations in the light of the
following factors
● the nature and extent of risks which it regards as acceptable for the group to bear
within its overall business objective
● the threat of such risks becoming a reality
● the group’s ability to reduce the incidence and impact of risk on its performance and
● the cost and benefits to the group of operating the relevant controls
against this background the board has split its review into the following areas
● corporate strategy
● published information compliance with laws and regulations and
● relationships with service providers
internal control
the key procedures established with a view to providing effective internal control are 
as follows
● strategic business planning detailed financial projections for the current
financial year are prepared and subject to formal review at least twice a year
● performance review the directors aim to monitor the group’s performance
through the preparation of monthly management accounts and regular reviews of
work in progress cash flow projections and the pipeline of future work
● review of internal control compliance with operating control procedures is
covered by the group’s external auditors to the extent necessary to form their
opinion as to the truth and fairness of the financial statements
relations with shareholders
communication with shareholders is given a high priority by the board and the directors
are available to enter into dialogue with shareholders all shareholders are encouraged
to attend and vote at the annual general meeting during which the board is available to
discuss issues affecting the company in addition the company maintains a website
wwwtheclaimspeoplecom containing information on the company of interest to
corporate and private shareholders
going concern
the directors have a reasonable expectation that the company has adequate resources
to continue in operational existence for the foreseeable future for this reason they
continue to adopt the going concern basis in preparing the financial statements
corporate governance report continued
for the year ended 31 december 2004
annual report and accounts 2004 14 company law requires the directors to prepare financial statements for each financial
year which give a true and fair view of the state of affairs of the company and group
and of the profit or loss of the group for that period in preparing those financial
statements the directors are required to
● select suitable accounting policies and then apply them consistently
● make judgements and estimates that are reasonable and prudent
● prepare the financial statements on a going concern basis unless it is inappropriate
to presume that the company will continue in business and
● state whether applicable accounting policies have been followed subject to any
material departures disclosed and explained in the financial statements
the directors are responsible for keeping proper accounting records which disclose
with reasonable accuracy at any time the financial position of the company and group
and to enable them to ensure that the financial statements comply with the companies
act 1985 the directors are responsible for ensuring that the directors’ report and
other information included in the annual report is prepared in accordance with
company law in the united kingdom and for ensuring that the annual report includes
information required by the aim rules they are also responsible for safeguarding the
assets of the group and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities
statement of directors’ responsibilities
for the year ended 31 december 2004
annual report and accounts 2004 15 we have audited the financial statements of the claims people group plc for the year
ended 31 december 2004 on pages 18 to 33 which have been prepared under the
historical cost convention and the accounting policies set out on pages 22 and 23
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report and the financial
statements in accordance with applicable law and united kingdom accounting
standards are set out in the statement of directors’ responsibilities
our responsibility is to audit the financial statements in accordance with relevant legal
and regulatory requirements and united kingdom auditing standards
this report is made solely to the company’s members as a body in accordance with
section 235 of the companies act 1985 our audit work has been undertaken so that
we might state to the company’s members those matters we are required to state to
them in an auditor’s 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
we report to you our opinion as to whether the financial statements give a true and fair
view and are properly prepared in accordance with the companies act 1985 we also
report to you if in our opinion the directors’ report is not consistent with the financial
statements if the company has not kept proper accounting records if we have not
received all the information and explanations we require for our audit or if information
specified by law regarding directors’ remuneration and transactions with the company
is not disclosed
we read the other information contained in the annual report and consider whether it is
consistent with the audited financial statements this other information comprises only
the directors’ report the chairman’s statement the chief executive’s report and the
corporate governance report we consider the implications for our report if we become
aware of any apparent misstatements or material inconsistencies with the financial
statements our responsibilities do not extend to any other information we are not
required to consider whether the boards statements on internal control cover all risks
and controls or form an opinion on the effectiveness of the group’s corporate
governance procedures or its risk and control procedures
independent auditors’ report to the members
year ended 31 december 2004
annual report and accounts 2004 16 basis of audit opinion
we conducted our audit in accordance with united kingdom auditing standards issued
by the auditing practices board an audit includes examination on a test basis of
evidence relevant to the amounts and disclosures in the financial statements it also
includes an assessment of the significant estimates and judgements made by the
directors in the preparation of the financial statements and of whether the accounting
policies are appropriate to the group’s circumstances consistently applied and
adequately disclosed
we planned and performed our audit so as to obtain all the information and explanations
which we considered necessary in order to provide us with sufficient evidence to give
reasonable assurance that the financial statements are free from material misstatement
whether caused by fraud or other irregularity or error in forming our opinion we also
evaluated the overall adequacy of the presentation of information in the financial
statements
opinion
in our opinion the financial statements give a true and fair view of the state of affairs of
the company and the group as at 31 december 2004 and of the profit of the group for
the year then ended and have been properly prepared in accordance with the
companies act 1985
saffery champness
chartered accountants and registered auditors
london   
8 march 2005
annual report and accounts 2004 17 notes 2004 2003
£ £
turnover 1 2665677 1965724
administrative expenses 2442362 1916448
operating profit 2 223315 49276
interest receivable 8785 4951
interest payable 3 3000 3409
profit on ordinary activities before taxation 229100 50818
taxation 7 49063 84495
profit after taxation and profit retained 8 278163 135313
earnings per share 9 028p 016p
fully diluted earnings per share 9 028p 016p
all of the company’s activities were classed as continuing during 2004 2003 included on acquisition
there are no recognised gains and losses other than those passing through the profit and loss account
consolidated profit and loss account
for the year ended 31 december 2004
annual report and accounts 2004 18
the notes on pages 24 to 33 form part of these financial statements 2004 2003
notes ££ ££
fixed assets
intangible assets 10 265661 304776
tangible assets 11 159581 169217
425242 473993
current assets
work in progress 13 402676 247516
debtors 14 648965 515504
cash at bank and in hand 147117 194431
1198758 957451
creditors amounts falling due within one year 15 522140 559423
net current assets 676618 398028
total assets less current liabilities 1101860 872021
creditors amounts falling due after one year 16 16480 64804
1085380 807217
share capital and reserves
called up share capital 17 1500000 1500000
share premium account 18 833778 833778
profit and loss account 18 1248398 1526561
equity shareholders’ funds 19 1085380 807217
these financial statements were approved by the board of directors on 8 march 2005
p m morgan
director
consolidated balance sheet
31 december 2004
annual report and accounts 2004 19
the notes on pages 24 to 33 form part of these financial statements company balance sheet
31 december 2004
annual report and accounts 2004 20
the notes on pages 24 to 33 form part of these financial statements
2004 2003
notes ££ ££
fixed assets
intangible assets 10 265661 304776
tangible assets 11 159581 169217
investments 12 5 5
425247 473998
current assets
work in progress 13 402676 247516
debtors 14 648965 515504
cash at bank and in hand 147117 194431
1198758 957451
creditors amounts falling due within one year 15 522145 559428
net current assets 676613 398023
total assets less current liabilities 1101860 872021
creditors amounts falling due after one year 16 16480 64804
1085380 807217
share capital and reserves
called up share capital 17 1500000 1500000
share premium account 18 833778 833778
profit and loss account 18 1248398 1526561
equity shareholders’ funds 19 1085380 807217
these financial statements were approved by the board of directors on 8 march 2005
p m morgan
director 2004 2003
notes ££ ££
net cash inflowoutflow 
from operating activities 22 176458 82891
return on investments and 
servicing of financing
interest received 8785 4951
bank interest payable and interest 
element of finance lease payments 3000 3409
5785 1542
capital expenditure
purchase of tangible fixed assets 69545 27920
acquisitions
purchase of goodwill 10 160885 111702
cash outflow before use of liquid resources 
and financing 48187 220971
financing
issue of equity share capital – 376220
costs of issue of equity share capital – 26775
refund of vat on flotation costs – 28430
proceeds from new bank loan 22532 –
repayments of bank loan 5007 –
capital element of finance lease rental payments 16652 30021
net cash inflow from financing 873 347854
decreaseincrease in cash 23 24 47314 126883
consolidated cash flow statement
for the year ended 31 december 2004
annual report and accounts 2004 21
the notes on pages 24 to 33 form part of these financial statements basis of accounting
the financial statements have been prepared under the historical cost convention and in accordance with
applicable accounting standards the most significant accounting policies are described below 
basis of consolidation
the consolidated financial statements incorporate the results of the company and all its subsidiary undertakings
as if they were a single entity subsidiary undertakings are consolidated from the date of acquisition using the
acquisition method of accounting
turnover
turnover represents the invoiced amount of services provided in the period and is stated net of vat
tangible fixed assets
tangible fixed assets are stated at cost less provision for depreciation depreciation is provided on all tangible
fixed assets at rates calculated to write off the cost of each asset less its estimated residual value evenly over its
estimated useful life as follows
claims software over five years
office equipment and fittings over three to five years
website development over three years
goodwill
goodwill is stated at cost less provision for amortisation amortisation is provided to write off the cost of goodwill
over fifteen years on a straight line basis
investments
fixed asset investments are stated at cost less provision for diminution in value
work in progress
work in progress is valued at the lower of cost and net realisable value
leasing and finance lease commitments
assets obtained under hire purchase contracts and finance leases are capitalised in the balance sheet and
depreciated over their useful economic lives the interest element of the rental obligations is charged to the profit
and loss account over the period of the contract and represents a constant proportion of the balance of capital
payments outstanding rentals paid under operating leases are charged to the profit and loss account on a
straight line basis over the term of the lease
accounting policies
annual report and accounts 2004 22 deferred taxation
deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance
sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay
less tax in the future have occurred at the balance sheet date timing differences are differences between the
group’s taxable profits and its results as stated in the financial statements that arise from the inclusion of gains
and losses in tax assessments in periods different from those in which they are recognised in the financial
statements
a net deferred tax asset is regarded as recoverable and therefore recognised only when on the basis of all
available evidence it can be regarded as more likely than not that there will be suitable taxable profits from which
the future reversal of the underlying timing differences can be deducted
deferred tax is measured on a nondiscounted basis at the average tax rates that are expected to apply in the
periods in which the timing differences are expected to reverse
pension costs
the group contributes to two group personal pension schemes for directors and senior employees pension
contributions are charged to the profit and loss account as they are incurred
annual report and accounts 2004 23 1 turnover
the total turnover of the group for the period has been derived from its principal activity wholly undertaken in the 
united kingdom
2 operating profit
2004 2003
£ £
operating profit is stated after charging
depreciation of tangible fixed assets
– owned assets 60930 80373
– assets held under hire purchase contracts and finance leases 18251 23188
amortisation of goodwill – 6926
auditors’ remuneration
– audit services
statutory audit 11750 10330
review of interim statement 2500 1850
– taxation services
compliance services 500 485
payments under operating leases – land and buildings 56116 49020
– hire of other assets 101118 96785
3 interest payable
2004 2003
£ £
on bank loan  overdraft 1736 1517
on finance leases 1264 1892
3000 3409
4 employees
the average number of persons including directors employed by the group was 2004 2003
number number
management 7 6
administration 9 6
loss adjusters 30 24
46 36
2004 2003
staff costs for the above persons £ £
wages and salaries 1188237 922096
social security costs 117290 92400
other pension costs 21431 17032
1326958 1031528
notes to the financial statements
for the year ended 31 december 2004
annual report and accounts 2004 24 5 pension costs
the group contributes to two group personal pension schemes for directors and certain employees contributions payable
to the pension schemes in the year were £21431 2003 £17032 
6 directors’ remuneration
year ended 31 december 2004
contributions
to money year ended
purchase estimated 31
pension value of december
salary schemes benefits total 2003
££££ £
executive directors
barry whyte 60868 5375 12547 78790 45349
peter morgan 34685 3106 6564 44355 32639
david croston 57808 5146 11694 74648 47070
153361 13627 30805 197793 125058
non executive
john french 10800 – – 10800 10800
graham cole 9000 – – 9000 9000
total 173161 13627 30805 217593 144858
details of options granted to directors under the unapproved share option scheme are given in the directors’ report 
on page 8
the number of directors for whom retirement benefits are accruing under money purchase pension schemes amounted 
to 3 2003 3
annual report and accounts 2004 25 7 taxation
2004 2003
£ £
domestic current year tax
uk corporation tax – –
current tax charge – –
reversal of timing difference 84495 –
origination of timing difference 133558 84495
49063 84495
factors affecting the tax charge for the year
profit on ordinary activities before taxation 229100 50818
profit on ordinary activities multiplied by standard rate of corporation tax of 30 68730 15245
adjustment for the effects of
expenses not deductible for tax purposes 16938 8733
depreciation and amortisation 23754 33146
capital allowances 27852 30181
tax losses brought forward utilised 79850 26391
marginal relief 1720 552
current tax charge – –
at 31 december 2003 the group had corporation tax losses and unclaimed capital allowances of £1401213 
2003 £1685589 subject to agreement with the inland revenue
at 31 december 2004 the deferred taxation asset comprised
2004 2003
group company group company
provided provided provided provided
££ ££
accelerated capital allowances 35681 35681 39778 39778
short term timing differences 2837 2837 ––
tax losses 95040 95040 44717 44717
133558 133558 84495 84495
movement on deferred tax account for the year
£
asset brought forward 84495
reversal of timing differences 84495
origination of timing difference 133558
asset carried forward 133558
notes to the financial statements continued
for the year ended 31 december 2004
annual report and accounts 2004 26 the deferred tax asset could be increased by £239783 representing corporation tax losses available which are still to be
recognised
8 profit attributable to ordinary shareholders
the company has taken advantage of the exemption under section 230 of the companies act 1985 from presenting its own
profit and loss account as the company has no active subsidiaries the profit dealt within the financial statements of the
company is the same as the consolidated profit being £278163 2003 £135313
9 earnings per share
the calculation of the basic and fully diluted earnings per share is based on the profit for the year after tax of £278163 
2003 £135313 and on 100000000 ordinary shares 2003 83920460 being the weighted average number of ordinary
shares in issue during the year in calculating fully diluted earnings per share the weighted average number of shares in issue
was 100037736 2003 84320460 ordinary shares the issue of shares after the year end does not have a material effect
on the calculation of earnings per share
10 goodwill – group and company
goodwill
£
at 1 january 2004 311702
adjustment for early settlement 39115
at 31 december 2004 272587
amortisation
at 1 january 2004 6926
charge for the year –
at 31 december 2004 6926
net book value
at 31 december 2004 265661
at 31 december 2003 304776
goodwill arises on the acquisition of the trade and assets of ccs global uk on 5 september 2003 as detailed below
£
fixed assets 5000
work in progress 47453
goodwill 272587
325040
the acquisition was to be settled by a deferred payment of £200000 subject to ccs global uk meeting income targets 
the consideration was settled early with a final payment £160885 representing a reduction in consideration of £39115
annual report and accounts 2004 27 11 tangible fixed assets – group and company
equipment
claims fixtures 
software and fittings website total
££££
cost
at 1 january 2004 151600 225182 89294 466076
additions 4200027545 –69545
disposals – 57451 – 57451
at 31 december 2004 193600 195276 89294 478170
depreciation
at 1 january 2004 68224 139342 89293 296859
charge for the year 32416 46765 – 79181
disposals 57451 – 57451
at 31 december 2004 100640 128656 89293 318589
net book value
at 31 december 2004 92960 66620 1 159581
at 31 december 2003 83376 85840 1 169217
included in the above are assets held under finances leases or hire purchase contracts with a net book value of £17779
2003 £37688
12 fixed asset investments – company
shares in
subsidiary
undertakings
£
cost
at 31 december 2003 and 31 december 2004 5
at 31 december 2004 the company held the whole of the issued share capital of the following subsidiary undertakings all of
which are incorporated in great britain and were dormant during the year
the claims people limited whyte  co limited
claim analysts limited whyte  croston limited
claims club limited
notes to the financial statements continued
for the year ended 31 december 2004
annual report and accounts 2004 28 13 work in progress
2004 2003
group company group company
££ ££
work in progress 402676 402676 247516 247516
14 debtors
2004 2003
group company group company
££ ££
due within one year
trade debtors 399088 399088 296013 296013
prepayments 95666 95666 114343 114343
other debtors 4250 4250 4250 4250
499004 499004 414606 414606
deferred tax asset note 7 133558 133558 84495 84495
632562 632562 499101 499101
due after one year
other debtors 16403 16403 16403 16403
648965 648965 515504 515504
15 creditors amounts falling within one year
2004 2003
group company group company
££ ££
bank loan note 16 7511 7511 ––
obligations under finance leases note 16 8346 8346 16660 16660
receipts in advance 61089 61089 122478 122478
trade creditors 168468 168468 58861 58861
amounts due to subsidiary undertakings –5 –5
other creditors 143781 143781 235064 235064
other taxes and social security 40455 40455 75835 75835
accruals 92490 92490 50525 50525
522140 522145 559423 559428
annual report and accounts 2004 29 16 creditors amounts falling due after one year
2004 2003
group company group company
££ ££
bank loan 
obligations under finance leases 10014 10014 –      –
6466      6466 14804 14804
deferred consideration –– 50000 50000
16480 16480 64804 64804
the group’s bank loan is unsecured and bears interest at 82 pa the loan is repayable in equal monthly instalments and
falls due as follows
2004 2003
group company group company
££ ££
within one year note 15 7511 7511 ––
between one and two years 7511 7511 ––
between two and five years 2503 2503 ––
17525 17525 ––
the group’s obligations under finance leases fall due as follows
2004 2003
group company group company
££ ££
within one year note 15 8346 8346 16660 16660
between one and two years 6466 6466 14804 14804
14812 14812 31464 31464
17 share capital – group and company
2004 2003
£ £
authorised
200000000 2003 200000000 ordinary shares of 15p each 3000000 3000000
2004 2003
£ £
allotted called up and fully paid
100000000 2003 100000000 ordinary shares of 15p each 1500000 1500000
notes to the financial statements continued
for the year ended 31 december 2004
annual report and accounts 2004 30 17 share capital – group and company continued
share options
at 31 december 2004 the following share options relating to the ordinary shares of 15p each were outstanding
option
number of price per option
shares share period
enterprise management incentive scheme
granted 24 october 2000 3950000 8p 241003 – 241010
granted 1 november 2001 250000 225p 11104 – 011111
granted 4 may 2004 500000 3625p 4507 – 4514
unapproved scheme
granted 24 october 2000 12370000 8p 241003 – 241010
the option granted under the unapproved scheme is in respect of an option over 16 of the total issued share capital at 
the date of exercise less 3750000 shares the above represents an estimate of the number of share options under the
unapproved scheme that would exist at 31 december 2004
18 reserves – group and company
share profit and
premium loss
account account
££
at 1 january 2004 833778 1526561
profit for the year – 278163 
at 31 december 2004 833778 1248398
19 reconciliation of movement in shareholders’ funds – group and company
2004 2003
£ £
profit for the financial year 278163 135313
issue of ordinary share capital – 376220
issue costs – 26775
refund of vat on flotation costs – 28430
increase in shareholders’ funds 278163 513188
opening shareholders’ funds 807217 294029
closing shareholders’ funds 1085380 807217
20 financial commitments
the company has given a fixed and floating charge over all assets to its bankers in return for an overdraft facility of £250000
the facility will be reviewed in april 2005 the facility had not been called upon in the year
annual report and accounts 2004 31 21 other financial commitments
at 31 december 2004 the company and group was committed to making the following payments under noncancellable
operating leases in the year ending 31 december 2005
land and land and
buildings other buildings other
2004 2004 2003 2003
££ ££
operating leases which expire
within one year 43570 52931 15650 13490
within two to five years – 47104 27920 25086
22 reconciliation of operating profit to net cash 
inflowoutflow from operating activities
2004 2003
£ £
operating profit 223315 49276
depreciation of tangible fixed assets 79181 103561
amortisation of goodwill – 6926
increase in workinprogress 155160 119448
increase in debtors 84398 198314
increase in creditors 113520 75108
net cash inflowoutflow from operating activities 176458 82891
23 reconciliation of net cashflow to movement in net funds
2004 2003
£ £
decreaseincrease in cash in the year 47314 126883
cash inflow from decrease in debt and lease financing 21659 30021
change in net funds resulting from cash flows 25655 156904
new finance leases – 25851
new bank loan 22532 –
opening net funds 162967 31914
closing net funds 114780 162967
notes to the financial statements continued
for the year ended 31 december 2004
annual report and accounts 2004 32 24 analysis of net funds
at at
31 december non cash 31 december
2003 cashflow movement 2004
£££ £
bank overdraft –––– 
cash at bank and in hand 194431 47314 – 147117
194431 47314 – 147117
finance leases 31464 16652 – 14812
bank loan – 17525 – 17525
total 162967 48187 – 114780
25 post balance sheet events
on 6 january 2005 the company issued 2937500 ordinary shares of 15p each at 3p per share in satisfaction of a liability
under a software licence agreement entered into by the company in february 2001
annual report and accounts 2004 33 notice is hereby given that the 2005 annual general meeting of the claims people group plc will be held at 9am on 31 may
2005 at lion house red lion street london wc1r 4gb for the following purposes
ordinary business
1 to receive and adopt the reports of the directors and of the auditors and the statement of accounts for the year ended
31 december 2004
2 to reappoint saffery champness as auditors to hold office until the conclusion of the next general meeting at which
accounts are laid before the company
3 to authorise the directors to determine and fix the remuneration of the auditors
4 to reelect mr graham cole as a director who retires by rotation pursuant to article 115 of the company’s articles of
association
special business
to consider and if thought fit to pass resolutions 5 6 and 7 as to which resolution 5 will be proposed and voted on as an
ordinary resolution and resolutions 6 and 7 will be proposed and voted on as special resolutions
5 that the directors of the company be and they are hereby generally and unconditionally authorised pursuant to the
provisions of section 80 of the companies act 1985 “the act” to exercise all the powers of the company to allot
relevant securities as defined by such section provided that
51 the maximum nominal amount of such securities that may be allotted under this authority within the meaning of that
section is £500000 and
52 this authority shall unless it is prior to its expiry duly revoked or is renewed expire at the conclusion of the annual
general meeting of the company to be held in 2006 or 15 months from the date of passing this resolution
whichever shall occur first save that the company may before such expiry make an offer or agreement which
would or might require relevant securities to be allotted after such expiry and the directors of the company may
allot relevant securities within the meaning of that section in pursuance of such offer or agreement as if the
authority conferred hereby had not yet expired
and provided also that the authority granted by this resolution shall be in substitution for any authority to allot relevant
securities within the meaning of that section previously granted to the directors which to the extent that it remains in
force and unexercised is hereby revoked
6 that subject and conditional upon the passing of resolution 5 above the directors of the company be and they are
hereby empowered pursuant to section 95 of the act to allot equity securities within the meaning of section 94 of the
act for cash pursuant to section 80 of the act as if section 891 of the act did not apply to any such allotment
provided that this power shall be limited to the allotment of equity securities
61 in connection with a rights issue in favour of or general offer to ordinary shareholders where the equity securities
respectively attributable to the interest of all the ordinary shareholders are proportionate as nearly as practicable to
the number of ordinary shares held by them respectively but subject to such exclusion and other arrangements as
the directors of the company may deem necessary or expedient to deal with fractional entitlements or any legal or
practical difficulties or the regulations or requirements of any regulatory body or stock exchange in any territory and
62 otherwise than pursuant to paragraph 61 above up to an aggregate nominal value of £500000
and such power shall expire at the conclusion of the annual general meeting of the company to be held in 2006 or 15
months from the date of passing this resolution whichever shall occur first save that the company may before such
expiry make an offer or agreement which would or might require equity securities to be allotted after such expiry and
the directors of the company may allot equity securities in pursuance of such offer or agreement as if the power
conferred hereby had not expired and provided also that the authority and power hereby conferred shall be in substitu
tion for any previous authority and power conferred upon the directors of the company pursuant to section 95 of the
act prior to the date of passing this resolution
7 that the company be and is hereby generally and unconditionally authorised for the purposes of section 166 of the act
to make one or more market purchases within the meaning of section 1633 of the act on the alternative investment
market of the london stock exchange of ordinary shares of 15p each in the capital of the company provided that
71 the maximum aggregate number of such shares hereby authorised to be purchased is 10293750 representing
10 of the company’s issued ordinary share capital
72 the minimum price which may be paid for such shares is 15p per share exclusive of tax and expenses
notice of annual general meeting
annual report and accounts 2004 34 73 the maximum price exclusive of tax and expenses which may be paid for such a share shall not be more than 5
above the average of the market values for such a share as derived from the alternative investment market
appendix to the daily official list of the london stock exchange for the five business days immediately preceding
the date on which such share is purchased
74 unless previously renewed varied or revoked the authority hereby conferred shall expire at the conclusion of the
annual general meeting of the company to be held in 2006 or 15 months from the date of passing this resolution
if earlier and
75 the company may make a contract or contracts to purchase such shares under the authority hereby conferred prior
to the expiry of such authority which would or might be executed wholly or partly after the expiry of such authority
and the company may make a purchase of such shares in pursuance of any such contract or contracts as if the
authority granted by this resolution had not expired
by order of the board
peter morgan
director and company secretary
49 southwark street
london
se1 1ru
25 april 2005
notes
1 to be entitled to attend and vote at the annual general meeting and for the purposes of the determination by the company of the
number of votes they may cast members must be entered on the company’s register of members not later than 48 hours before the
time of the meeting if the annual general meeting is adjourned to a time not more than 48 hours after the specified time applicable to
the original meeting that time will also apply for the purpose of discerning the entitlement to members to attend and vote and for the
purposes of determining the number of votes they may cast at the adjourned annual general meeting if however the annual general
meeting is adjourned for a longer period then to be so entitled members must be entered on the company’s register of members at
the time which is 48 hours before the time fixed for the adjourned meeting or if the company gives notice of the adjourned annual
general meeting at the time specified in that notice
2 a member entitled to vote at the annual general meeting is entitled to appoint one or more proxies to attend and on a poll to vote
instead of the member a proxy need not be a member of the company
3 a form of proxy for the use of members is enclosed with the notice to be effective the form of proxy must be deposited duly
completed and signed at the company’s registrar no less than 48 hours before the time appointed for the holding of the annual
general meeting
there will be available for inspection at the registered office of the company during the normal business hours from the date of
this notice until the date of annual general meeting and at the place of the annual general meeting for 15 minutes prior to the
annual general meeting and until the conclusion of the annual general meeting the register of directors’ interests in accordance
with section 325 of the act and copies of the directors’ service contracts in accordance with section 318 of the act
annual report and accounts 2004 35 directors frederick john french non executive chairman
graham cole non executive
barry ian whyte chief executive
peter martin morgan finance director
david croston operations director
secretary peter martin morgan
registered office 49 southwark street
london
se1 1ru
registered number 3922895
registered auditors saffery champness
chartered accountant
lion house
red lion street
london
wc1r 4gb
nominated advisers and brokers seymour pierce limited
bucklersbury house
3 queen victoria street
london
ec4n 8el
solicitors eversheds
70 great bridgewater street
manchester
m1 5es
bankers hsbc bank plc
49 corn street
bristol
bs99 7pp
registrars capita registrars
northern house
woodsome park
fenay bridge
huddersfield 
hd8 0la
company information
annual report and accounts 2004 36


Summary:
 i am pleased to announce our results for the financial 
year which show further improvement in performance
turnover for 2004 has increased by 36 to £267 million
2003 £197 million and profit after tax has been
improved to £278163 2003 £135313  
our strategy of providing claims handling consultancy and
website facilities to the insurance industry continues to be
well received combined with our use of leading edge
technology with a unique webbased claims notification
and monitoring system
overall we had a very busy year with a particularly
buoyant summer period when claims volumes were 
significantly higher than the corresponding period in 2003
we continued to add to our client list and most significantly secured a two year primary
adjuster contract with rubicon insurance services in addition to this 2004 saw our first
consultancy income stream for providing client support services and we are confident
that this could well become a more regular contributor to our operating revenues  
costs and cashflow continue to be monitored very carefully and additional margin gains
are achievable as our level of activity increases  
the current financial year commencing 1st january has seen increased volumes from
the flood conditions in that month and the receipt of a number of large commercial
claims that will enhance 2005 income
chairman’s statement
annual report and accounts 2004 2 we continue to invest in our it infrastructure and since the year end completed the
latest phase of our claims system enhancement which was funded by a issue of shares
to the innovation group plc
2004 was a year which saw a concentration on organic growth but we are seeking to
achieve further earnings enhancing acquisitions in 2005 and we are actively pursuing
opportunities in this regard
finally i wish to thank our loyal employees and our shareholders for their support  
john french
chairman
8 march 2005
annual report and accounts 2004 3