highams systems services group plc
is a business and technology recruitment consultancy
specialising in the insurance investment management 
and financial services sectors
annual report  financial statements 
for the year ended 31 march 2007
talent matters 02 group at a glance
03 operating and financial highlights
04 chairman’s statement
06 chief executive’s report
08 directors
09 directors and advisers
10 report of the directors
13 statement of directors’ responsibilities
14 statement of corporate governance
15 directors’ remuneration report
16 report of the auditors
18 consolidated profit  loss account
19 consolidated balance sheet
20 company balance sheet
21 consolidated cash flow statement
22 notes to the financial statements
35 five year record
36 notice of meeting
38 financial calendar
rainbow trust childrens charity provides practical
and emotional support to families who have a child 
with a life threatening or terminal illness
wwwrainbowtrustorguk
trees for cities is an independent charity set up 
in 1993 to work with local communities on tree 
planting projects
wwwtreesforcitiesorg
actionaid is an international antipoverty agency whose
aim is to fight poverty worldwide
wwwactionaidorguk
highams is a corporate member of the recruitment
 employment confederation having satisfied rec
membership criteria and committed to its code 
of professional practice in addition highams is 
also a member of the specialist sector group for 
it and communications recruitment agencies
highams ceo is spokesperson for the rec 
it and communications sector
highams is delighted to be in partnership with
rainbow trust trees for cities and action aid
highams’ staff will raise money for rainbow
trust to provide support for the families of sick
children whilst we will be making donations to
trees for cities for every interview we arrange
and to action aid for every successful placement
we make
a member of rec it  comms key highams principles
4
show that talent matters
4
create memorable customer experiences
4
drive profitable ventures
4
embrace innovation
4
leave our mark
“in my experience of recruitment over the last
ten years highams’ knowledge of the market
for project managers business analysts and
testers for the uk and european insurance
industry is unrivalled”
jan egan business analysis manager allianz plc highams systems services group 
 at a glance
our markets
we provide it resource solutions to the insurance investment management and
financial services sectors the markets in which we have specialised for the past
24 years the companies to which highams supplies talented personnel range
from major financial institutions through startup insurance companies to specialist
software suppliers to this market our niche market expertise and proven
resourcing capability have positioned us as the specialist of choice with many 
blue chip organisations
our consultants contractors and applicants
our speciality is in finding excellent career opportunities and assignments for
senior it talent we are constantly developing our relationships and networks to
ensure we obtain the best available positions for such talent whilst ensuring that
their skills and personalities are compatible with the needs of our clients
our people
at highams we work hard to develop and maintain longterm relationships with
our clients contractors and applicants to help ensure this we focus on the
development and retention of our very experienced and proud staff to ensure they
are among the most knowledgeable in the industry both in terms of recruitment
best practice and the specialist niche markets in which highams operates
“when i interview candidates that 
have been sent by highams i not 
only know that they are technically 
capable but more importantly 
they are the right kind of character 
for novae”
steve fookes it director novae group plc highams ra2007  03
operating 
and financial
highlights
operational
4 a year of significant change with agreed ambitious plans for the year ahead
4 revamped board including appointment of dave pye as new ceo
4 new city of london office and enlarged sales team have already delivered additional business
4 good progress made in moving to highermargin recruitment
4 higher margin permanent business increased by 90  strong demand for permanent staff traditionally
a sign of a confident market
4 continued investment in current year
4 overseas expansion – future rollout of innovative low cost high touch model as a formula for further 
international development
4 gross profit up by 25 to £22m 2006 £21m representing 1329 of turnover 2006 1173 group
turnover fell to £163m 2006 £180m reflecting reduced volume of lowmargin contract business
group operating loss before goodwill amortisation of £120k 2006 profit of £192k before goodwill
amortisation in the main reflecting increased investment in the second half of the year
financial 2007 2006
£’000 £’000
turnover 16286 17997        
gross profit 2165 2112
operating lossprofit for the financial year before
amortisation of goodwill 120 192
loss for the financial year before tax 313 13
net current assets 681  848
shareholders’ funds 1661 1974
loss per share 098p 005p
lossprofit per share before amortisation of goodwill 058p 035p 
dividend per share  
highams ra2007  03 04  highams ra2007
chairman’s
statement 
these are exciting times at highams we have a revamped board
we have a new chief executive dave pye we have opened a
new highams office in the heart of our client base in the city of
london we have considerably enlarged our sales team we have
agreed ambitious plans for the year ahead
our goal is to make a step change in the group’s performance we
recognised as a board that such a step change was not likely without
new personnel at all levels of the organisation starting at the top 
i strongly encourage you to read our new chief executive’s report to
learn more of the year ended 31 march 2007 and importantly what 
is in store for this current financial year and the future
the results for the last financial year given below reveal the progress
we are making in our move to higher margin business albeit the
bottom line was inevitably impacted by the investment at the start 
of the new change programme the current financial year will be one 
of continued investment as we implement our plans which we expect
to see bear fruit in this and subsequent years 
financial results
the group made an operating loss of £120000 before goodwill
amortisation of £128000 2006 profit of £192000 before goodwill
amortisation of £128000 in the main reflecting our increased
investment in the second half of the year
group loss before taxation was £313000 2006 loss of £13000 
reflecting the group’s move towards higher margin business and 
a greater percentage of permanent business group turnover fell by 
10 per cent to £163m 2006 £180m as we undertook a reduced
volume of lowmargin contract business but gross profit still grew by
25 to £22m 2006 £21m representing 1329 of turnover a
significant improvement compared to 1173 in 2006 
the directors are not recommending the payment of a final dividend for the
year to 31 march 2007 2006 nil
trading review
our emphasis has been and remains on finding higher value business
through further enhancing our capabilities to provide a specialised
range of services to smaller and medium sized organisations we have
continued to seek and win new clients that meet these criteria in our
niche market sectors of insurance investment management and
financial services
we have achieved this refocusing of our strategy whilst managing to
modestly improve our levels of net fee income compared to the previous
year our volume of lowmargin business has reduced substantially
while highermargin contract business has increased by around 5
and permanent business has increased by 90 
trading in our specialist areas has remained positive with a continuing
emphasis on demand for permanent staff this stronger demand for
permanent staff compared to contract personnel is traditionally a sign
of a confident market 
demand is particularly strong across the board for individuals with
project and programme management skills business analysis experience
related to business intelligence and regulatory reporting and those with
web development skills in our niche markets 
investment
in 2007 08 we are making substantial investments in new initiatives
additional staff targeted training our london premises and overseas
expansion we expect that our niche markets will remain strong for 
the next two or three years at least making this an opportune time to
be investing in our ambitious plans inevitably there are normal risks
associated with such an investment programme and the delivery of 
the benefits from the investments will lag behind the costs i therefore 
highams’ endusers 
insurance
aig
allianz insurance
aspen
capita life  pensions services
cassidy davis
ceta
cmgl
diligenta
eds solcorp
hsbc
just retirement
kanbay
liberata
lockton international
lv insurance management
mgm assurance
mitsui sumitomo insurance 
open gi
prudential assurance
rias
scor global 
software solutions partners
swiftcovercom
winterthur financial services
zurich insurance
3i infotech
4
create memorable customer experiences expect our half year results to reflect the costs and few of the benefits
whilst the second half of the year should be more balanced such
investments will initially also require greater use of our finance facilities
and hence higher interest charges will likely be incurred 
board changes
on 3 january 2007 we welcomed dave pye as our new ceo
following an intensive selection process dave brings substantial sales
and seniorlevel management experience a wealth of contacts and
extensive influence within the it recruitment industry to his new role 
at highams and has used all of this to determine and drive the exciting
change programme on which we have embarked
on dave’s appointment ted andrews stepped aside as managing
director to assume the position of chief operating officer
we announced the resignations of glen burbidge and tony eve
effective from 31 march 2007 and 11 may 2007 respectively glen
burbidge’s board responsibilities have been assumed by dave pye
whilst his operational duties have been taken over by mark de lacy
who runs our caterham sales team and paul byrne who is in charge 
of our london sales office tony eve’s board and operational
responsibilities have been absorbed into ted andrews’ role
executives and staff
we remain unusual amongst recruitment companies in having a high
number of very knowledgeable and longserving staff i am extremely
grateful to them for their loyalty and their eagerness to support the
significant changes we are effecting in the company i extend a warm
welcome to our newer staff and hope that many of them will develop
along similar lines as their experienced colleagues
outlook
as i stated in my introduction these are exciting times at highams with
a great number of very positive changes in progress dave pye’s ceo’s
report explains many of these changes demonstrating the thought
leadership practical approach and infectious energy and enthusiasm 
he has brought to highams
with the continuing strength of our marketplace and our determined
approach to delivering highquality highvalue recruitment consultancy
services i look forward to the group’s continued progress in the
months ahead with confidence
alan howarth  4
chairman
23 july 2007
investment management 
banking  finance
bravura solutions
credit suisse securities europe
fortis investment management
hbos
infocomp
nationwide building society
paymaster 1836
praemium
selestia
swiss re
tradar
1st software
non financial 
bmw uk
hitachi europe
mckesson
nortel networks
perot systems
pfizer 
sainsbury’s
schneider electric
spicer haart
thales
tomer experiences the rising importance of recruitment companies
the search for talent has remained one of the top priorities for chief
executives during the past year its importance will continue in the next
five years as organisations realise that what mckinsey once called the
‘war for talent’ is having a major impact on recruitment companies in
europe and globally two significant reports on talent and recruitment
in the economist oct 06 and by demos and the recruitment and
employment confederation april 07 have shown how recruitment is
changing and how increasingly important intermediaries such as
highams are in the provision of talent to organisations 
we fully expect that changing demographics new attitudes to career
expectations and more dependence from employers on a good
personality fit compared to simply a good skills fit will place greater
emphasis on highquality network orientated recruitment methods 
highams operates in this arena and is creating a niche for itself in the
provision of senior appointments in technology in the financial services
sector highams’ role as an intermediary between contingent and
permanent talent and our customers continues to be recognised by our
long standing customers and those new clients who started benefiting
from highams’ services in the past year
challenging highams in a changing world 
since my arrival in january 07  there has been much change at
highams to ensure we make the most of the rising importance of
recruitment companies to organisations the market in the uk and
europe continues to grow this year highams has hired 15 new people
to tap into this growth our focus has remained in financial services 
and i am delighted to report highams has secured a number of new
customers in the last quarter of 200607  whilst the focus away from
some of the historic lower margin preferred supplier business has had
an effect on the revenue line proportionally the net fee income as a
percentage of sales is rising
our approach has been to refine our offering to our customers – both
to our consultants and candidates and to organisations which hire 
them highams offers two distinct services a private client approach 
in the provision of senior consultants who have worked with highams 
in the past and a retail approach for general business with a wider
range of customers this has resulted in highams developing deeper
relationships with significant customers and allowing us to offer them 
a wider range of valuecreating services whilst at the same time
maintaining our existing business with customers where highams
places people with organisations on an occasional basis
our major focus for 0708 is to ensure highams is at the forefront 
in our sector in maximizing the efficiency provided by web 20 in the
words of the demos report “web 20 sees the internet as a collaborative
tool where we each have a role in creating value for one another” as is
happening for instance with youtube linkedin and facebook this will
result in attracting talent for our customer base and ensuring that talent
can communicate with one another and with highams the relationship
that highams builds with its candidates and consultants will be
increasingly vital to its success in a world where those who manage
and deliver top talent will become ever more important and successful
the international dimension
as our customer base grows so will our presence internationally our
business in brussels has grown in 200607 and our innovative model
of using local homeworkers in belgium is a formula that highams will
use internationally during the coming 12 months this model primarily
involves expatriates typically parents returning to full or parttime work
having had families they are excellent recruiters and their intelligence
combined with our workforce flexibility will help develop and cement
stronger relationships with our customers it is a low cost high touch
model that will see highams become an international organisation in 
a world where talent is sourced and delivered globally as talented
people continue to move around highams will feature prominently in 
its sector this approach is being executed initially by working with our
06  highams ra2007
chief
executive’s
report
recruitment 2020 how recruitment is changing and why it matters   
available from wwwdemoscouk
4
drive profitable ventures international customers who are demanding highams provides its
excellent uk services into other geographic locations
expansion in the uk
in april 2007  we opened our first office in the uk outside our
caterham headquarters taking an office on the 28th floor of the iconic
‘gherkin’ building in the city of london has brought highams closer 
to its financial services customers and is a base for our platinum club
an invitation only community for our private client technology talent
highams continues to work alongside its customers as they seek 
to become more imaginative utilise their brand in the most effective
way and ensure that in the ‘digital age’ the technology that drives
organisations is provided by the very best people highams will
continue to provide the very best talent as it continues to grow 
with its customers in the coming years
our wider responsibility
highams has recently selected rainbow trust trees for cities and
action aid to partner working with rainbow trust highams’ staff will
through various fundraising events raise money to provide support for
the families of sick children 
we will also be raising awareness for our environment and for projects
overseas by making donations to trees for cities for every interview
and action aid for every contract or permanent placement made 
these partnerships are a great example of how we can work alongside
a charity both motivating our staff in their work and demonstrating to
clients our social responsibility
people making the difference
one of the key success factors for highams to build on is the length 
of service of our people of our people who have been with us for 
more than a year over 50 have been at highams for more than 
10 years and a further 30 for more than 5 years in a market where
traditionally recruiters move many times our heritage of keeping our
top people is much appreciated by our customers resulting in
continued and strong business renewals adding another 40 of
people to this team this year has already generated additional business
and will auger well for the coming years
today highams employs 40 proud people in this rising market they all
need to be at the top of their game those that were not exited the
business in the final quarter of 200607  for both our new colleagues
and our existing people new training programmes have been developed
highams has taken an active role in the recruitment industry with its
involvement in the recruitment and employment confederation the
highams brand often quoted in the past 24 years but certainly relatively
quiet in the recent past has been invigorated with a number of press
articles customer events and charitable involvement in the first six
months of 2007 
my role as ceo is to ensure our people are confident and happy in the
key role they play in our organisation and with their customers it is to
drive this business back to sustainable profitable growth and to provide
the platform to do so finally it is to establish highams as one of the
key organisations upon whose services its customers rely to drive their
businesses forward
i am proud of our people and their dedication in this year of change
and excitement i trust that you will share in our enthusiasm to make 
a difference in the recruitment sector and to see how our influence
matters as we devote ourselves to being the leading niche provider 
of technology talent in the financial services industry
dave pye 4
chief executive officer
23 july 2007
highams ra2007  07
s
“i have always been impressed 
by highams and its knowledge 
of our industry in terms of service 
highams provides nothing short 
of excellence”
steve williams head of strategic sales 
bravura solutions  08  highams ra2007
directors
1 alan miles howarth
nonexecutive chairman 
alan aged 61 was appointed a director and chairman on 3 may
2005 he has spent over 20 years as a management consultant
advising management on strategic operational and resource
improvement formerly managing director of compass management
consulting he was a partner with ernst  young for 16 years
additional nonexecutive directorships include gresham computing
plc chamberlin  hill plc crf inc and various interests in public
bodies and smaller private concerns 
2 dave pye
chief executive officer
dave aged 42 joined the company and was appointed a director on
3 january 2007  dave has extensive experience as a recruitment
professional within the technology services industry over a 20 year
period he was previously managing director of the technology
division within spring group plc the uk’s largest technology staffing
organisation and was a member of the spring group management
board 
3 edward ian andrews
chief operating officer
ted aged 55 has been a director of highams since joining the
company on 1 november 1983 he has a background of technical
and management roles in insurance companies and software houses
he gained experience in directing the software and recruitment
aspects of the group prior to being appointed group managing
director in 1999 moving to his current role in january 2007 
4 john edward higham
acii nonexecutive director 
and deputy chairman
john aged 62 founded highams in 1983 after many years gaining
experience of the insurance market from an it and business
perspective both within insurance company and software house
environments john was chief executive of the group until april 2000
when he took up his current role he has been a director of the
company since 1 february 1983
12 3 4 highams ra2007  09
directors 
and advisers
directors
am howarth chairman
d pye chief executive officer appointed 3 january 2007
ei andrews chief operating officer
je higham nonexecutive
gd burbidge resigned 31 march 2007
ma eve resigned 11 may 2007
secretary
ei andrews
registered office
quadrant house
3345 croydon road
caterham
surrey cr3 6pb
auditors
bdo stoy hayward llp
2 city place
beehive ring road
gatwick
west sussex rh6 0pa
registered number
1700310
bankers
the royal bank of scotland plc
turnpike house
123 high street 
crawley
west sussex rh10 1dq
registrars
capita registrars
northern house
woodsome park
fenay bridge
huddersfield
west yorkshire hd8 0la
nominated adviser and broker
charles stanley securities 
25 luke street 
london ec2a 4ar
solicitors
kirkpatrick  lockhart preston 
gates ellis llp
110 cannon street
london ec4n 6ar
highams ra2007  09
executive management team 4
from left to right mark de lacy
dave pye ted andrews kerri
sayers seated mike radlett
paul byrne and sarah elliott the directors present their report and the audited financial statements
for the company and the group for the year ended 31 march 2007 
principal activity highams is a specialist it recruitment consultancy
and its principal activity is the provision of contract and permanent it
recruitment services mainly in the insurance investment management
and financial sectors further details of the group’s operations are
given in the chief executive’s report
results and dividends the group recorded a loss before taxation 
of £313000 2006 loss £13000 on a turnover of £163m 
2006 £180m
the directors do not recommend a final dividend 2006 nil no interim
dividend was paid during the year 2006 nil 
review of business the detailed review of the year and the significant
changes that are occurring are described in the chairman’s statement
and chief executive’s report on pages 4 to 7
the directors closely monitor a number of key performance indicators
in the business the directors consider that the most important indicator
is the gross profit obtained from permanent and contract placements
together with the average gross margin percentages achieved it is
encouraging to note that gross profit increased by 25 during the
period whilst average gross margin increased from 1173 to 1329
key financial risks of the group
interest rate risk the group finances its operations through a mixture
of retained profit bank borrowings and invoice discounting the group
borrows in pounds sterling and euros 
liquidity risk the group’s policy is to ensure that it has adequate
financial resources to enable it to finance its day to day operations
based on cash flow projections the group’s working capital
requirements are usually short term in nature and accordingly the
group uses short term overdraft and invoice discounting facilities
foreign currency risk the group trades within europe its transactions
are generally priced and invoiced in euros and the direct costs of the
sales are denominated in that currency risk arises on the monetary
assets and monetary liabilities of the group that are not denominated 
in the functional currency of the operating unit concerned
credit risk as the group trades primarily within the financial services
sector its experience of bad debt is very limited however credit 
ratings provided by credit rating agencies are obtained for all non 
‘blue chip’ clients 
key business risks of the group
staff highams has an excellent record of staff retention in the
recruitment market in a service company such as highams it is
essential that highquality staff are recruited and then retained 
through appropriate incentives focused training and a challenging 
but supportive environment if client relationships are to be maintained
and new customers won 
clients clients may choose not to continue to use highams’ services 
if our service fails to meet the required standards we may also lose 
a client’s business if that client is acquired by a competitor  
to help ensure the maintenance of high standards highams is
committed to the rec code of professional practice and its iso9001
certified quality management system importantly longevity of service of
many highams staff helps provide clients with continuity of dealing with
someone who has a detailed knowledge of their needs a big factor in
helping retain clients
applicants and contractors in a buoyant market permanent applicants
usually have a greater choice of positions available to them whilst fewer
contractors might be seeking work 
highams’ staff work hard to be very knowledgeable about their niche
business and technical areas by developing a network of clients 
10  highams ra2007
report of 
the directors highams ra2007  11
contractors and applicants relevant to that niche highams’ staff are
better positioned to attract and help talented contractors and applicants
than more generalist agencies might be 
competition there are many competing recruitment organisations 
it is very important that highams maintains and enhances its niche
market approach in order to continue to differentiate itself from most
other such organisations
directors the directors of the company are set out on page 8 
in accordance with the company’s articles of association am howarth
retires by rotation and offers himself for reelection biographical details
for mr howarth are provided on page 8
d pye was appointed a director on 3 january 2007 and offers himself
for election biographical details of mr pye are provided on page 8
directors’ interest in shares the persons who held the office of director
at 31 march 2007 had the following interests in fully paid ordinary 5p
shares of the company at the beginning and end of the financial year
31 march 2007 1 april 2006 
shares options shares options
ei andrews 3570000  3570000 
gd burbidge 587842  587842  
ma eve 108476  62400 
je higham 8697649  8697649 
d pye  1931700 
notes
1 je higham’s interest includes 200000 shares held by his wife 
and 1230000 shares held by the john higham family trust
2 d pye’s share options were granted on 30 march 2007 
3 am howarth has no interests in shares of the company
4 ma eve resigned from the company on 11 may 2007  his interest
includes 83276 shares held by his wife and children he has a
further nonbeneficial interest in 1230000 shares held by the 
john higham family trust of which he is a trustee see note 1 
5 gd burbidge resigned from the company on 31 march 2007 
as at 9 july 2007 there have been no changes to serving directors’
interests in shares as reported at 31 march 2007 
substantial shareholders as at 9 july 2007 the following substantial
shareholdings have been notified to the company
number of shares  of issued 
share capital
je higham 7267649 2280
john higham family trust 1230000 386
ei andrews 3570000 1120
resource solutions group 1325000 416
brewin nominees limited 1302300 409
teawood nominees limited 1050000 329
share option schemes information regarding the company’s share
option schemes is given in note 21 to the financial statements
corporate governance the directors report on page 14 upon the extent
to which the company observes and complies with the “combined
code” published by the financial reporting council in july 2003 supplier payment policy the group’s policy is to pay its contractors 
by direct credit within seven days of receipt of correct invoices the
group’s policy with regard to other suppliers is to settle amounts due 
in accordance with the terms of payment agreed when agreeing the
terms of each transaction the trade creditor days figure at 31 march
2007 was 36 2006 26
financial instruments details of the group’s financial instruments are
given in note 14 to the financial statements
liability insurance for company officers the company has maintained
insurance cover for the directors against liability arising from
negligence default breach of duty and breach of trust in relation to the
company
charitable and political donations during the year the company made
no charitable donations 2006 nil there were no political donations
2006 nil
as mentioned in the chief executive’s report the company has
chosen certain charities to support during the current financial year
auditors so far as the directors who were in office at the time that this
directors’ report was approved are aware there is no relevant audit
information of which the auditors are unaware each such director has
taken all reasonable steps to make himself aware of any relevant audit
information and to establish that the auditors are aware of that
information
a resolution to reappoint bdo stoy hayward llp as auditors will be
proposed at the annual general meeting
this report was approved by the board of directors on 23 july 2007 
ei andrews 4
company secretary
12  highams ra2007
report of 
the directors
continued the directors are responsible for preparing the annual report and the
financial statements in accordance with applicable law and united
kingdom generally accepted accounting practice
company law requires the directors to prepare financial statements for
each financial year which give a true and fair view of the state of affairs
of the company and the group and of the profit or loss of the group
for that period in preparing the financial statements the directors are
required to
4 select suitable accounting policies and then apply them consistently
4 make judgements and estimates that are reasonable and prudent
4 state whether applicable accounting standards have been followed
subject to any material departures disclosed and explained in the
financial statements and
4 prepare the financial statements on the going concern basis unless
it is inappropriate to assume that the group will continue in business
the directors are responsible for keeping proper accounting records
which disclose with reasonable accuracy at any time the financial
position of the company and the group and enable them to ensure
that the financial statements comply with the companies act 1985
they are also responsible for safeguarding the assets of the company
and the group and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities
highams ra2007  13
statement 
of directors’
responsibilities the board is committed to high standards of corporate governance 
so that the company’s management procedures are transparent and
clearly understood by those who work within the company and by
those who invest in it
the board the aim of the board is to function at the head of the
company’s management structures leading and controlling its activities
and setting a strategy for enhancing shareholder value regular
strategy meetings are held to review the group’s forward planning –
vital in a rapidly changing market and technology environment
the board currently consists of two executive directors and two non
executive directors the company does not have a nomination
committee as such the board collectively undertakes the functions 
of such a committee
the chairman and the chief executive these tasks are carried out by
different individuals they have a clear understanding as to the split of
responsibilities between them and they meet regularly on a onetoone
basis so that each is aware of the ideas and actions of the other
internal control the board has overall responsibility for ensuring that
the group maintains systems and internal financial controls that provide
them with reasonable assurance regarding the financial information
both for use within the business and for external publication and that
the assets are safeguarded
an ongoing process has been established for identifying evaluating
and managing the principal risks faced by the group the process 
has been in place for the full year under review and up to the date 
of approval of the annual report and financial statements the board
regularly reviews the process
audit committee the board collectively undertakes the functions 
of the audit committee which is chaired by john higham 
the terms of reference for the audit committee are to assist the 
board in the discharge of its responsibilities for corporate governance
financial reporting and internal control its duties include maintaining an
appropriate relationship with the company’s auditors keeping under
review the scope and results of the audit and its effectiveness
the audit committee has sole responsibility for assessing the
independence of the external auditors bdo stoy hayward llp 
the committee has had due regard to the document published in 
may 2003 by the institute of chartered accountants in england 
and wales icaew “reviewing auditor independence guidance for
audit committees” each year the committee undertakes to seek
reassurance that the external auditors are independent
remuneration committee this committee recom which meets at
least twice a year is chaired by alan howarth the board collectively
undertakes the functions of remcom the board has adopted a set 
of operational rules for remcom which will be available for inspection
at the agm 
the directors’ remuneration report is on page 15
going concern after making appropriate enquires the directors
consider 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
14  highams ra2007
statement 
of corporate
governance this report sets out the remuneration policies for the group’s executive
directors it should be read in conjunction with details of directors’
remuneration in note 5 which forms part of the audited financial
statements the members of the remuneration committee remcom
are identified on page 14 
with the exception of mr andrews and mr pye the members of
remcom are independent of conflicts of interest arising from day 
to day running of the business remcom makes recommendations 
to the board no director is involved in discussion about his own
remuneration 
remuneration policies remcom recommends to the board a
framework for executive remuneration remcom determines specific
packages for each executive director including pension rights and
compensation payments
the general philosophy underlying the group’s remuneration policy for
executive directors is the same as that applied to all senior employees in
order to encourage excellence the basic components of remuneration
are salary and benefits cash bonuses share schemes and pensions
salary and benefits remcom studies independent reports and market
trends in considering the level of salary and benefits it also takes into
account experience responsibility and performance 
bonuses bonuses may be awarded at remcom’s discretion depending
on company performance and profits within the relevant business area
details of d pye’s share and bonus scheme are given below
share schemes details of all company share schemes together 
with the performance incentives appear in note 21 to the financial
statements  
d pye was granted options on 1931700 shares exercisable at 5125p
per share pursuant to the highams emi share option scheme 
the options were granted by remcom on 30 march 2007 this being
the last business day of the year the share price at the year end was
5125p the options will vest subject to the audited gross profit figure
of the group for the financial year ended 31 march 2008 being in
excess of £600000 greater than the audited gross profit figure of the
group for the financial year ended 31 march 2007  in the event that
the above gross profit figure to 2008 is not achieved one third of the
options shall instead vest on an increase in gross profit of £500000 
or more vested options are exercisable at any time between 30 march
2010 and 30 march 2017 
if the target of a £600000 increase in gross profit is achieved a cash
bonus of £50000 will be paid if the gross margin in the period increases
by more than £600000 the cash bonus described above will be
increased by 25 of the gross margin in excess of £600000
if the target of a £600000 increase in gross margin is not achieved
but an increase of at least £500000 is achieved a cash bonus of
£16500 will be paid
pensions the group operates a defined contribution pension scheme the
contributions to which are set out in note 5 to the financial statements
service contract of the executive directors ei andrews has a service
agreement terminable by the company by not less than twelve months’
notice or by the executive at not less than six months’ notice d pye
has and ma eve had an agreement that can be terminated on six
months’ notice gd burbidge had a service agreement terminable by
the company by not less than twelve months’ notice or by the
executive at not less than six months’ notice
nonexecutive directors nonexecutive directors receive an annual fee
in respect of their duties the fees are reviewed annually and are set by
the board their contracts are immediately terminable
ei andrews 4
company secretary
highams ra2007  15
directors’
remuneration
report report of the independent auditors to the shareholders of
highams systems services group plc
we have audited the group and parent company financial statements
the financial statements of highams systems services group plc for
the year ended 31 march 2007 which comprise the consolidated profit
and loss account the consolidated and company balance sheets the
consolidated cash flow statement the consolidated statement of
total recognised gains and losses and the related notes these
financial statements have been prepared under the accounting policies
set out therein
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the financial statements 
in accordance with applicable law and united kingdom accounting
standards united kingdom generally accepted accounting practice
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 international standards
on auditing uk and ireland
we report to you our opinion as to whether the financial statements
give a true and fair view and have been properly prepared in
accordance with the companies act 1985 and whether the information
given in the directors’ report is consistent with those financial
statements we also report to you if in our opinion the company has
not kept proper accounting records if we have not received all the
information and explanations we require for our audit or if information
specified by law regarding directors remuneration and other
transactions is not disclosed
we read other information contained in the annual report and consider
whether it is consistent with the audited financial statements this other
information comprises only the directors’ report the chairman’s 
statement the chief executive’s report the statement of corporate
governance the directors’ remuneration report the operating and
financial highlights and the five y ear record 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
our report has been prepared pursuant to the requirements of the
companies act 1985 and for no other purpose no person is entitled
to rely on this report unless such a person is a person entitled to rely
upon this report by virtue of and for the purpose of the companies act
1985 or has been expressly authorised to do so by our prior written
consent save as above we do not accept responsibility for this report
to any other person or for any other purpose and we hereby expressly
disclaim any and all such liability
basis of audit opinion
we conducted our audit in accordance with international standards on
auditing uk and ireland issued by the auditing practices board an
audit includes examination on a test basis of evidence relevant to the
amounts and disclosures in the financial statements it also includes an
assessment of the significant estimates and judgments made by the
directors in the preparation of the financial statements and of whether
the accounting policies are appropriate to the group’s and companys
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
16  highams ra2007
report of 
the auditors opinion
in our opinion 
4 the group financial statements give a true and fair view in
accordance with united kingdom generally accepted accounting
practice of the state of the group’s affairs as at 31 march 2007
and of its loss for the year then ended
4 the parent company financial statements give a true and fair view in
accordance with united kingdom generally accepted accounting
practice of the state of the parent companys affairs as at 31 march
2007
4 the financial statements have been properly prepared in accordance
with the companies act 1985 and
4 the information given in the directors’ report is consistent with the
financial statements
bdo stoy hayward llp4
chartered accountants and registered auditors
gatwick
23 july 2007
highams ra2007  17 consolidated profit 
 loss account
for the year ended 31 march 2007
2007 2006
notes £000 £000
turnover 2 16286 17997
cost of sales 14121 15885
gross profit 2165 2112
administrative expenses
– before goodwill amortisation 2285 1920
– goodwill amortisation 9 128 128
2413 2048
operating lossprofit before goodwill amortisation 120 192
operating lossprofit 248 64
interest receivable 3a  2
interest payable 3b 65 79
loss on ordinary activities before taxation 6 313 13
tax on loss on ordinary activities 7  2
loss for the year 17 313 15
loss per share  basic and diluted 8 098p 005p
consolidated statement of total recognised gains and losses
for the year ended 31 march 2007
2007 2006
£000 £000
loss for the financial year 313 15
loss on foreign currency translation  1
total recognised gains and losses 313 16
the accompanying notes are an integral part of these financial statements
18  highams ra2007 consolidated
balance sheet
31 march 2007
2007 2006
notes £000 £000
fixed assets
goodwill 9 943 1071
tangible assets 10a 37 55
980 1126
current assets
debtors 12 2936 3170
cash at bank and in hand 228 73
3164 3243 
creditors amounts falling due within one year 13 2483 2395
net current assets 681 848
net assets 1661 1974
capital and reserves
called up share capital 16a 1594 1594
share premium 17a 679 679
merger reserve 17a 90 90
employee share benefit trust reserve 17a 61 61
profit and loss account 17a 641 328
shareholders funds 17a 1661 1974 
the financial statements on pages 18 to 34 were approved by the board of directors 
and authorised for issue on 23 july 2007
ei andrews director je higham director
the accompanying notes are an integral part of these financial statements
highams ra2007  19 company
balance sheet
31 march 2007
2007 2006
notes £000 £000
fixed assets
tangible assets 10 14 26
investments 11  
14 26
current assets
debtors 12 3241 2945
cash at bank and in hand 14 2
3255 2947
creditors amounts falling due within one year 13 322 199
net current assets 2933 2748
net assets 2947 2774
capital and reserves
called up share capital 16a 1594 1594
share premium 17b 679 679
merger reserve 17b 297 297
employee share benefit trust reserve 17b 61 61
profit and loss account 17b 438 265
shareholders funds 17b 2947 2774
the financial statements on pages 18 to 34 were approved by the board of directors 
and authorised for issue on 23 july 2007
ei andrews director je higham director
the accompanying notes are an integral part of these financial statements
20  highams ra2007 consolidated 
cash flow statement
for the year ended 31 march 2007
highams ra2007  21
2007 2006
notes £000 £000
net cash outflowinflow from operating activities 18 61 458
returns on investments and servicing of finance
interest received  2
interest paid 65 79
65 77
taxation
uk corporation tax  46
capital expenditure and financial investment
purchase of tangible fixed assets 10 38
sale of tangible fixed assets  9
10 29
cash outflowinflow before financing in the year 136 306
financing
purchase of own shares by employee share benefit trust  2
increasedecrease in invoice discounting facility 291 478
291 480
increasedecrease in cash in the year 19 155 174
the accompanying notes are an integral part of these financial statements notes to the 
financial statements
for the year ended 31 march 2007
1 accounting policies
accounting convention
the accounts have been prepared under the historical cost convention and in accordance with applicable accounting standards 
basis of consolidation
the group financial statements consolidate the financial statements of the company and its subsidiary undertakings using the acquisition
method of accounting
the results of subsidiary undertakings acquired are included from the date of acquisition the results of subsidiary undertakings disposed
of are included up to the date of disposal and the net profit or loss on disposal is calculated based on the net proceeds receivable and the
net assets at the date of disposal including any unamortised goodwill
turnover
turnover represents amounts receivable for services provided during the accounting period net of trade discounts and value added tax
revenue in respect of contract placements is recognised in the period in which the contractor undertakes the work revenue in respect 
of permanent placements is recognised in the period in which a placement commences work
goodwill
goodwill arising on the acquisition of subsidiary undertakings is carried on the balance sheet and amortised over its useful economic life 
of ten years the carrying value of goodwill is reviewed regularly for impairment on subsequent disposal of the underlying investment any
goodwill not yet amortised will be taken to the profit and loss account when calculating the profit or loss on disposal
tangible fixed assets and depreciation
tangible fixed assets are stated at cost net of depreciation and provision for impairment depreciation is provided on all tangible fixed
assets at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as follows
leasehold improvements – over period of lease
computer equipment – 50 on cost per annum
furniture fittings and office equipment – 25 on cost per annum
motor vehicles – 25 on written down value per annum
investments
investments are shown at cost less provision for impairment
finance and operating leases
assets held under finance leases or hire purchase agreements are capitalised in the financial statements and depreciated over their
estimated useful lives finance and hire purchase charges are charged to the profit and loss account over the period of the lease
rentals under operating leases being leases which do not result in the transfer to the group of substantially all the risks and rewards 
of ownership of the assets being leased are charged to the profit and loss account on a straight line basis over the lease term 
deferred taxation
deferred tax is recognised in respect of all timing differences that have originated but not reversed by the balance sheet date except for
deferred tax assets which are only recognised to the extent that the company anticipates making sufficient taxable profits in the future to
absorb the reversal of the underlying timing differences
deferred tax balances are not discounted
22  highams ra2007 foreign currency
transactions in foreign currencies are recorded at the rate of exchange at the time of the transaction monetary assets and liabilities
denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date or if appropriate
at the forward contract rate any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is included
as an exchange gain or loss in the profit and loss account 
foreign currency on consolidation
the results of overseas operations are translated at the average rates of exchange ruling during the period and their balance sheets at the
rates ruling at the balance sheet date exchange differences arising from this policy are dealt with through reserves
pension costs
the group operates a defined contribution pension scheme the pension cost charged to the profit and loss account represents
contributions payable by the group to the pension scheme in the year differences between contributions payable in the year and
contributions actually paid are shown as either accruals or prepayments in the balance sheet 
financial instruments
in relation to the disclosures made in note 14
– short term debtors and creditors are not treated as financial assets or financial liabilities other than for currency disclosures
– the group does not hold or issue derivative financial instruments for trading purposes
employee share benefit trust
the cost of the companys shares held by the employee share benefit trust is deducted from shareholders funds in the company and
consolidated balance sheet any cash received by the employee share benefit trust on disposal of the shares it holds is also recognised
directly in shareholders funds other assets and liabilities of the employee share benefit trust including borrowings are recognised as
assets and liabilities of the company any shares held by the employee share benefit trust are treated as cancelled for the purposes of
calculating earnings per share
sharebased payments
where share options are awarded to employees the fair value of the options at the date of grant is charged to the income statement 
over the vesting period nonmarket vesting conditions are taken into account by adjusting the number of equity instruments expected 
to vest at each balance sheet date so that ultimately the cumulative amount recognised over the vesting period is based on the number
of options that eventually vest market vesting conditions are factored into the fair value of the options granted as long as all other vesting
conditions are satisfied a charge is made irrespective of whether the market vesting conditions are satisfied the cumulative expense is
not adjusted for failure to achieve a market vesting condition
where the terms and conditions of options are modified before they vest the increase in the fair value of the options measured
immediately before and after the modification is also charged to the income statement over the remaining vesting period

highams ra2007  23 notes to the 
financial statements
for the year ended 31 march 2007
2 segmental information   
a classes of business
in the years ended 31 march 2007 and 2006 the group operated the single activity of recruitment services
b geographical analysis
turnover by origin turnover by destination
2007 2006 2007 2006
£000 £000 £000 £000
united kingdom 16094 17739 15051 16790
rest of world 192 258 1235 1207 
16286 17997 16286 17997
the united kingdom accounts for substantially all of the groups loss before tax and net assets
3 interest
a interest receivable 2007 2006
£000 £000
bank deposit  2
b interest payable 2007 2006
£000 £000
invoice discounting facility 62 70
other 3 9
65 79
4 information regarding employees including directors
a staff costs
total staff costs were as follows group company
2007 2006 2007 2006
£000 £000 £000 £000
wages and salaries 1339 1094 525 334
social security costs 139 120 50 36
other pension costs 60 102 46 90
1538 1316 621 460
b staff numbers
the average number of persons                                                               group company
employed during the year were as follows 2007 2006 2007 2006
number number number number
management 5 5 7 7
production and administration 5 5  
sales and marketing 19 17  
29 27 7 7
24  highams ra2007 highams ra2007  25
5 directors’ remuneration
aggregate remuneration
the total amounts for directors remuneration and other benefits were as follows
2007 2006
£000 £000
emoluments 359 273
compensation for loss of office gd burbidge 100 
money purchase pension contributions 41 86
500 359
a directors remuneration money money
purchase purchase
feesbasic taxable total severance pension total pension
salary benefits emoluments payment contributions emoluments contributions
2007 2007 2007 2007 2007 2007 2006 2006 2006
£000 £000 £000 £000 £000 £000 £000 £000 £000
executive
d pye
appointed 3 january 2007 45  45   45  
ei andrews 111 7 118  31 149 77 76 153
gd burbidge
resigned 31 march 2007 113 1 114 100 10 224 109 10 119
ma eve 32  32   32 36  36
nonexecutive
je higham 20  20   20 20  20
am howarth 30  30   30 28  28
nn graham maw
deceased 12 april 2005   3 3
351 8 359 100 41 500 273 86 359
the highest paid director was ei andrews 2006 gd burbidge
d pye is employed under a service agreement which can be terminated at any time by either the director or the company giving six
months prior notice ei andrews is employed under a service agreement which can be terminated at any time giving six months
prior notice by the director and twelve months notice by the company the services of am howarth and je higham are secured
by letters of appointment and these appointments can be terminated by the company in general meeting at any time the
services of gd burbidge terminated on 31 march 2007 and the services of ma eve terminated on 11 may 2007
b directors pension entitlements
during the year two directors were members of money purchase pension schemes 2006 two contributions paid by the
company in respect of such directors are shown in part a of this note
c directors share options and interests
details of directors share options and interests are shown in the directors report on pages 10 to 12 notes to the 
financial statements
for the year ended 31 march 2007
26  highams ra2007
6 loss on ordinary activities before taxation
the loss on ordinary activities before taxation is stated after charging 2007 2006
£000 £000
auditors’ remuneration 
– for audit services
consolidation 98
company 55
uk subsidiaries 12 11
– for nonaudit services corporation tax services 2 1
depreciation and amounts written off tangible fixed assets
– owned assets 28 17
operating lease rentals
– buildings 70 70
– vehicles and computers 5 5
7 tax on loss on ordinary activities
the tax for the year comprises 2007 2006
£000 £000
uk corporation tax
current year  
prior year  2
deferred taxation  
 2
reconciliation of tax charge
loss on ordinary activities before taxation 313 13
uk corporation tax at the standard rate of 30 2006 30 95 4
effect of
expenses not deductible for tax purposes 43 47
depreciation in excess of capital allowances 5 7
utilisation of tax losses 52 52
losses carried forward 109 18
current tax charge for year  2
at the balance sheet date the group had £1385000 2006 £610000 of losses to carry forward against future profits highams ra2007  27
8 loss per share weighted weighted
average average profit
number of loss profit number of loss
loss shares per share loss shares per share
2007 2007 2007 2006 2006 2006
£000 000 p £000 000 p
lossprofit for the financial year before goodwill amortisation 185 31692 058 113 31700 035
goodwill amortisation note 9 128  040 128  040
loss for the financial year 313 31692 098 15 31700 005
dilutive effect of options  5  
313 31697 098 15 31700 005
the weighted average number of shares excludes shares held by the employee share benefit trust
loss per share before goodwill amortisation is presented as the directors consider that this gives a useful indication of 
underlying performance there is no difference in either 2007 or 2006 between the basic and diluted loss per share before 
goodwill amortisation
9 goodwill
the carrying value of goodwill comprises group
£000
cost
at 1 april 2006 and 31 march 2007 1278
amortisation
at 1 april 2006 207
charge for the year 128
at 31 march 2007 335
carrying value at 31 march 2007 943
carrying value at 31 march 2006 1071
the goodwill arose on the acquisition of rwp recruitment services limited in 2004 notes to the 
financial statements
for the year ended 31 march 2007
10 tangible fixed assets
a group
furniture fittings
leasehold computer and office motor
improvements equipment equipment vehicles total
£’000 £’000 £’000 £’000 £’000
cost
1 april 2006 75 129 61 34 299
additions  10   10
disposals    
31 march 2007 75 139 61 34 309
depreciation
1 april 2006 71 92 60 21 244 
charge for the year 1 23 1 3 28
disposals   
31 march 2007 72 115 61 24 272
net book value 31 march 2007 3 24  10 37
net book value 31 march 2006 4 37 1 13 55
b company
furniture fittings
leasehold computer and office motor
improvements equipment equipment vehicles total
£’000 £’000 £’000 £’000 £’000
cost
1 april 2006 75 70 52 19 216
additions   
disposals   
31 march 2007 75 70 52 19 216
depreciation
1 april 2006 71 58 50 11 190
charge for the year 1 8 1 2 12
disposals   
31 march 2007 72 66 51 13 202 
net book value 31 march 2007 3 4 1 6 14
net book value 31 march 2006 4 12 2 8 26
28  highams ra2007 highams ra2007  29
11 investment in subsidiary undertakings
company
£000
cost
at 1 april 2006 and 31 march 2007 80
provision
at 1 april 2006 and 31 march 2007 80
net book value 31 march 2007 
net book value 1 april 2006 
principal class of
activity shares held
consolidated subsidiaries
highams recruitment services ne limited dormant ordinary
highams recruitment bv recruitment ordinary
highams recruitment limited recruitment ordinary
rwp recruitment services limited dormant ordinary
equationhr limited dormant ordinary
highams holding bv holding company ordinary
highams share scheme trustee limited trustee of employee benefit trust ordinary
highams international limited holding company ordinary
all subsidiaries are incorporated in the uk other than highams recruitment bv and highams holding bv which are incorporated 
in the netherlands all subsidiaries are wholly owned subsidiaries marked with an asterisk are directly owned by the company
12 debtors amounts falling due within one year
group company
2007 2006 2007 2006
£000 £000 £000 £000
trade debtors 2707 2890  
amounts due from subsidiary undertakings   3132 2860
other debtors 15 10 15 10
prepayments and accrued income 214 270 94 75
2936 3170 3241 2945
13 creditors amounts falling due within one year
group company
2007 2006 2007 2006
£000 £000 £000 £000
invoice discounting facility 591 300  
trade creditors 1300 1523 80 66
other taxes and social security costs 276 305 22 10
accruals and deferred income 266 195 180 62
other creditors 50 72 40 61
2483 2395 322 199 notes to the 
financial statements
for the year ended 31 march 2007
14 derivatives and other financial instruments
the group’s financial instruments comprise borrowings cash and items such as trade debtors and creditors that arise as a result
of normal operations the group does not trade in financial instruments
the main risks arising from the groups financial instruments are interest rate risk and foreign currency risk the board reviews and
agrees policies for managing each of these risks and they are summarised below 
interest rate risk
the group finances its operations through a mixture of retained profit bank borrowings and invoice discounting the group
borrows in pounds sterling and euros the board reviews interest rates on potential borrowings although during the period the
group was not exposed to significant interest rate risk
interest rate profile
cash deposits are noninterest bearing unless placed on money markets at overnight rates the invoice discounting facilities are
charged at 165 above the uk base rate
foreign currency risk
the group trades within europe transactions in europe are generally priced and invoiced in euros 
currency exposures
the table below shows the groups currency exposures such exposures comprise the monetary assets and monetary liabilities of
the group that are not denominated in its functional currency of the operating unit concerned these exposures were as follows
euro total
£000 £000
31 march 2007 208 208
31 march 2006 88 88 
maturity of financial liabilities
the overdraft facility is repayable on demand 
borrowing facilities
the group has an overdraft facility of £1000000 gross net nil 2006 gross £1000000 net nil and a confidential invoice
discounting facility of £1750000 2006 £1750000 both facilities are group cross guaranteed at 31 march 2007 
the groups use of the combined facilities was £591000 2006 £300000
fair values
the fair values of the financial assets and liabilities at 31 march 2007 and 31 march 2006 are not materially different from 
their book values
15 provision for liabilities and charges
a deferred taxation asset has not been created because tax losses carried forward are not expected to be relieved in the
foreseeable future
the deferred tax asset not being recognised is valued at £418427 2006 £362388
30  highams ra2007 16 share capital
a summary
authorised authorised
2007 2006 2007 2006
number number £000 £000
ordinary 5p shares 42921300 42921300 2146 2146
allotted called up allotted called up
and fully paid          and fully paid
2007 2006 2007 2006
number number £000 £000
ordinary 5p shares 31875568 31875568 1594 1594
b contingent rights to the allotment of shares
as at 31 march 2007 options have been granted in respect of 1931700 2006 160399 of the companys ordinary 5p shares
under the companys emi share option scheme to subscribe for ordinary shares of the company as detailed in note 21 options
on 160399 shares lapsed during the year
17 reconciliation of movements in shareholders’ funds
a group
share share merger employee share profit and total
capital premium reserve benefit reserve loss account
£000 £000 £000 £000 £000 £000
opening shareholders funds 1594 679 90 61 328 1974
loss for the year     313 313
closing shareholders funds 1594 679 90 61 641 1661 
b company
share share mergeremployee share profit and total
capital premium reserve benefit reserve loss account
£000 £000 £000 £000 £000 £000
opening shareholders funds 1594 679 297 61 265 2774
profit for the year     173 173
closing shareholders funds 1594 679 297 61 438 2947
as permitted by section 230 of the companies act 1985 the profit and loss account of the company has not been included in
these accounts the profit of the company for the year ended 31 march 2006 was £172000
highams ra2007  31 notes to the 
financial statements
for the year ended 31 march 2007
18 net cash flow from operating activities
2007 2006
£000 £000
operating lossprofit 248 64 
depreciation of tangible fixed assets 28 17 
goodwill amortisation 128 128
decreaseincrease in debtors 234 261
decreaseincrease in creditors 203 508 
profit on disposal of fixed assets  3
exchange difference  1
net cash outflowinflow from operating activities 61 458 
19 analysis and reconciliation of net debt
analysis of changes in net debt
1 april cash 31 march
2006 flow 2007
£000 £000 £000
cash at bank and in hand 73 155 228 
invoice discounting facility 300 291 591
net debt 227 136 363
cash at bank and in hand includes £2368 2006 £2368 in respect of monies held in the employee share benefit trust
reconciliation of net cash flow to movement in net debt
2007 2006
£000 £000
cash inflowoutflow 155 174
decreaseincrease in invoice discounting facility 291 478
136 304 
net debt at beginning of year 227 531
net debt at end of year 363 227
32  highams ra2007 20 financial commitments
group
land and land and
buildings other buildings other
2007 2007 2006 2006
£000 £000 £000 £000
annual commitments under noncancellable 
operating leases expiring
within one year  5
between 2 and 5 years 70 27 70 22
70 27 70 27
company
land and land and
buildings other buildings other
2007 2007 2006 2006
£000 £000 £000 £000
annual commitments under noncancellable 
operating leases expiring
within one year  
between 2 and 5 years 70 27 70 22
70 27 70 22
21 employee share schemes
a approved employee share option scheme
the company adopted an hm revenue  customs approved executive share option scheme on 17 may 1996 at 31 march
2007 all options previously granted have lapsed the number of options in existence at 31 march 2006 was 141068 and the
weighted average exercise price was 95p the scheme terminated on 17 may 2006 without any options being exercised 
b unapproved employee share option scheme 
the company adopted an employee share option scheme on 15 november 1995 which is not approved by hm revenue 
 customs under the terms of this scheme certain employees of the company were granted options over ordinary shares 
the number of options in existence at 31 march 2006 was 19331 and the weighted average exercise price was 80p
all options previously granted have lapsed 
c emi option scheme
the company adopted an emi enterprise management incentive scheme and granted 779220 shares as at 8 september 2000
all of these options had lapsed prior to the beginning of the year
highams ra2007  33 notes to the 
financial statements
for the year ended 31 march 2007
21 employee share schemes continued
the scheme was amended with effect from 29 march 2007 in order to reflect legislative changes since the schemes creation
options over 1931700 ordinary shares were granted on 30 march 2007 at an exercise price of 5125 pence per share these
options will vest in full if the gross profit of the group for the year ended 31 march 2008 exceeds the gross profit for the year
ended 31 march 2007 by £600000 or more if this increase in gross profit is not achieved one third of the options will instead 
vest on an increase in gross profit of £500000 or more over the same period the options will lapse to the extent that these
performance targets are not achieved vested options are exercisable after 30 march 2010
valuation
options were valued by using the blackscholes option pricing model no performance conditions were included in the fair value
calculations the relevant options are not subject to total shareholder return performance conditions the fair value per option
granted during the year and the assumptions used in the calculation are as follows
grant date 30 march 2007
share price at grant date 5125p
vesting period 3 years
expected volatility 65
option life 10 years
expected life 35 years
risk free rate 52986
dividend yield 0
fair value per option 1776p
the expected volatility is based on historical volatility since january 2000 the expected life is the expected period to exercise 
the risk free rate of return is the uk gilts rate on date of grant consistent with the assumed option life
given that the options were not granted until 30 march 2007 the charge to the profit and loss account for the year is £30
2006 £nil
d all employee share ownership plan
the company has adopted an hm revenue  customs approved share scheme in which no shares had been granted as at 
31 march 2007
e employee share benefit trust
an employee share benefit trust was established in november 1995 and its trustees have the power to grant options to eligible
employees over shares in the company at the trust’s expense and the company’s discretion upon such terms as they think fit
and to purchase such shares to be acquired by the eligible employees 
in accordance with uitf 38 the cost of shares acquired by the trust are included in the sponsoring companys shareholders
funds
the company did not make any contributions to the trust during the year 2006 £nil the trust holds 183953 shares in the
company with a market value of £9428 2006 183953 shares at a market value of £8565 
no shares have been transferred to employees or were under option as at 31 march 2007 the trust’s only other asset at 
31 march 2007 was cash at bank of £2368 2006 £2368 which is included in the company’s balance sheet as part of cash 
at bank and in hand the trust had no liabilities 
34  highams ra2007 five year record
2007 2006 2005 2004 2003
£000 £000 £000 £000 £000
results
turnover 16286 17997 13512 8559 11096
operating lossprofit  continuing operations 248 64 486 507 208
operating profit  discontinued operations    20 
loss on ordinary activities before taxation 313 13 511 293 190
loss for the financial year after taxation 313 15 502 293 190
dividends      
assets employed
goodwill 943 1071 1199  
tangible fixed assets 37 55 46 99 80
net current assets 681 848 747 1694 2000
net assets 1661 1974 1992 1793 2080
financed by
shareholders’ funds 1661 1974 1992 1793 2080
key statistics
lossprofit per share before goodwill amortisation 
and exceptional costs 058p 035p 083p 205p 098p
loss per share 098p 005p 186p 151p 098p
return on shareholders’ funds  188 08 252 163 91
return on assets employed  345 71 613 272 100
note
 loss for the financial yearclosing shareholders funds
 operating resultnet assets excluding goodwill
highams ra2007  35 notice of meeting
notice is hereby given that the annual general meeting of the company will be held at charles stanley  company limited 
25 luke street london ec2a 4ar on wednesday 5 september 2007 at 1130 am in order to transact the following business
ordinary business
resolution 1 to receive and adopt the financial statements and the reports of the directors and the auditors for the financial year
ended 31 march 2007
resolution 2 to reelect alan miles howarth who retires by rotation as a director of the company
resolution 3 to elect dave pye as a director of the company
resolution 4 to reappoint bdo stoy hayward llp as auditors of the company and to authorise the board to fix their
remuneration
special business
to consider and if thought fit pass the following resolutions as ordinary and special resolutions in the case of resolution 5 as 
an ordinary resolution and in the case of resolution 6 as a special resolution
ordinary resolution
resolution 5 that the directors be and are hereby generally and unconditionally authorised for the purposes of section 80 of the
companies act 1985 the “act” to exercise all the powers of the company to allot relevant securities as defined in the act up to
an aggregate nominal amount of £531260 and within that period to make any offer or agreement which would or might require
such securities to be allotted after the expiry of this authority and all authorities previously conferred on the directors pursuant to
section 80 of the act be and are hereby revoked this authority shall expire on whichever is the earlier of the conclusion of the
annual general meeting to be held in 2008 or the date falling 15 months from the passing of this resolution and
special resolution
resolution 6 that the directors be and are hereby empowered to allot equity securities within the meaning of section 94 of the
act pursuant to the general authority for the purposes of section 80 of the act conferred by resolution 5 above up to the
aggregate nominal amount of £79688 as if section 891 of the act did not apply to such allotment and the company may make
an offer or agreement which would or might require such securities to be allotted after the expiry of the authority and all authorities
previously conferred on the directors pursuant to section 95 of the act be and are hereby revoked this authority shall expire on
whichever is the earlier of the conclusion of the annual general meeting to be held in 2008 or the date falling 15 months from the
passing of this resolution
by order of the board
ei andrews
secretary
23 july 2007 
registered office
quadrant house
3345 croydon road
caterham
surrey
cr3 6pb
36  highams ra2007 notes 
a a member entitled to attend and vote may appoint a proxy to attend and vote instead a proxy need not be a member of the
company a form of proxy is enclosed which to be valid must be delivered to the company’s registrars capita registrars
proxies proxy processing centre telford road bicester ox26 4ld so as to be received no less than 48 hours excluding
weekends and bank holidays before the time appointed for holding the annual general meeting or any adjournment thereof
lodgement of a form of proxy will not prevent a member from attending and voting in person if so desired
b the register of directors’ interests in the shares of the company will be available for inspection throughout the meeting and at
the registered office of the company during normal business hours 
c to be entitled to attend and vote at the meeting and for the purpose of determining the number of votes shareholders may
cast shareholders must be entered on the company’s register of members not later than 600pm on 3 september 2007 or 
if the meeting is adjourned shareholders must be entered on the company’s register of members not later than 48 hours
excluding weekends and bank holidays before the time fixed for the adjourned meeting
d pursuant to regulation 41 of the uncertificated securities regulations 2001 the company specifies that only those
shareholders registered in the register of members of the company as at 600pm on 3 september 2007 shall be entitled to
attend or vote at the meeting in respect of the number of shares registered in their names at that time changes to entries in
the register of members after 600pm on 3 september 2007 shall be disregarded in determining the rights of any person to
attend or vote at the meeting
highams ra2007  37 financial calendar
last date and time for receipt of proxy for the annual general meeting 1130 am on 3 september 2007
annual general meeting 1130 am on 5 september 2007
38  highams ra2007 notes
highams ra2007  39 notes
40  highams ra2007 designed and produced by best  co 020 7440 8710 highams systems services group plc
quadrant house
3345 croydon road
caterham
surrey cr3 6pb
united kingdom
tel 44 0 1883 341144
fax 44 0 1883 346699
email infohighamscom
web wwwhighamscom


Summary:
 04  highams ra2007
chairman’s
statement 
these are exciting times at highams we have a revamped board
we have a new chief executive dave pye we have opened a
new highams office in the heart of our client base in the city of
london we have considerably enlarged our sales team we have
agreed ambitious plans for the year ahead
our goal is to make a step change in the group’s performance we
recognised as a board that such a step change was not likely without
new personnel at all levels of the organisation starting at the top 
i strongly encourage you to read our new chief executive’s report to
learn more of the year ended 31 march 2007 and importantly what 
is in store for this current financial year and the future
the results for the last financial year given below reveal the progress
we are making in our move to higher margin business albeit the
bottom line was inevitably impacted by the investment at the start 
of the new change programme the current financial year will be one 
of continued investment as we implement our plans which we expect
to see bear fruit in this and subsequent years 
financial results
the group made an operating loss of £120000 before goodwill
amortisation of £128000 2006 profit of £192000 before goodwill
amortisation of £128000 in the main reflecting our increased
investment in the second half of the year
group loss before taxation was £313000 2006 loss of £13000 
reflecting the group’s move towards higher margin business and 
a greater percentage of permanent business group turnover fell by 
10 per cent to £163m 2006 £180m as we undertook a reduced
volume of lowmargin contract business but gross profit still grew by
25 to £22m 2006 £21m representing 1329 of turnover a
significant improvement compared to 1173 in 2006 
the directors are not recommending the payment of a final dividend for the
year to 31 march 2007 2006 nil
trading review
our emphasis has been and remains on finding higher value business
through further enhancing our capabilities to provide a specialised
range of services to smaller and medium sized organisations we have
continued to seek and win new clients that meet these criteria in our
niche market sectors of insurance investment management and
financial services
we have achieved this refocusing of our strategy whilst managing to
modestly improve our levels of net fee income compared to the previous
year our volume of lowmargin business has reduced substantially
while highermargin contract business has increased by around 5
and permanent business has increased by 90 
trading in our specialist areas has remained positive with a continuing
emphasis on demand for permanent staff this stronger demand for
permanent staff compared to contract personnel is traditionally a sign
of a confident market 
demand is particularly strong across the board for individuals with
project and programme management skills business analysis experience
related to business intelligence and regulatory reporting and those with
web development skills in our niche markets 
investment
in 2007 08 we are making substantial investments in new initiatives
additional staff targeted training our london premises and overseas
expansion we expect that our niche markets will remain strong for 
the next two or three years at least making this an opportune time to
be investing in our ambitious plans inevitably there are normal risks
associated with such an investment programme and the delivery of 
the benefits from the investments will lag behind the costs i therefore 
highams’ endusers 
insurance
aig
allianz insurance
aspen
capita life  pensions services
cassidy davis
ceta
cmgl
diligenta
eds solcorp
hsbc
just retirement
kanbay
liberata
lockton international
lv insurance management
mgm assurance
mitsui sumitomo insurance 
open gi
prudential assurance
rias
scor global 
software solutions partners
swiftcovercom
winterthur financial services
zurich insurance
3i infotech
4
create memorable customer experiences expect our half year results to reflect the costs and few of the benefits
whilst the second half of the year should be more balanced such
investments will initially also require greater use of our finance facilities
and hence higher interest charges will likely be incurred 
board changes
on 3 january 2007 we welcomed dave pye as our new ceo
following an intensive selection process dave brings substantial sales
and seniorlevel management experience a wealth of contacts and
extensive influence within the it recruitment industry to his new role 
at highams and has used all of this to determine and drive the exciting
change programme on which we have embarked
on dave’s appointment ted andrews stepped aside as managing
director to assume the position of chief operating officer
we announced the resignations of glen burbidge and tony eve
effective from 31 march 2007 and 11 may 2007 respectively glen
burbidge’s board responsibilities have been assumed by dave pye
whilst his operational duties have been taken over by mark de lacy
who runs our caterham sales team and paul byrne who is in charge 
of our london sales office tony eve’s board and operational
responsibilities have been absorbed into ted andrews’ role
executives and staff
we remain unusual amongst recruitment companies in having a high
number of very knowledgeable and longserving staff i am extremely
grateful to them for their loyalty and their eagerness to support the
significant changes we are effecting in the company i extend a warm
welcome to our newer staff and hope that many of them will develop
along similar lines as their experienced colleagues
outlook
as i stated in my introduction these are exciting times at highams with
a great number of very positive changes in progress dave pye’s ceo’s
report explains many of these changes demonstrating the thought
leadership practical approach and infectious energy and enthusiasm 
he has brought to highams
with the continuing strength of our marketplace and our determined
approach to delivering highquality highvalue recruitment consultancy
services i look forward to the group’s continued progress in the
months ahead with confidence
alan howarth  4
chairman
23 july 2007
investment management 
banking  finance
bravura solutions
credit suisse securities europe
fortis investment management
hbos
infocomp
nationwide building society
paymaster 1836
praemium
selestia
swiss re
tradar
1st software
non financial 
bmw uk
hitachi europe
mckesson
nortel networks
perot systems
pfizer 
sainsbury’s
schneider electric
spicer haart
thales
tomer experiences